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Inaugural
Issue

INDUSTRIAL
PRODUCT
NEW-AGE INDUSTRIAL MONTHLY | www.iprmagazine.com
REVIEW

Another Look at Industry 4.0: We let Manufacturers Focus on their Core


Estimators for The Future of Competencies than Worrying about Logistics
ogistics
Intermittent Demand Manufacturing - Dr. Jitendra Joshi, Chairman, Abhihi Group
Research Article - P42 Trends - P53 Interview - P26

COVER STORY
Automotive in South Asia:

From Fringe
to Global (Part - 1)
World Bank recommendations for the automotive
industry to move from a domestic growth under
protection model to a sustainable productivity
driven global growth model.
P12
INDUSTRIAL PRODUCT REVIEW 3
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NEW-AGE INDUSTRIAL MONTHLY

4 INDUSTRIAL PRODUCT REVIEW


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VOLUME 1, ISSUE 1 | APRIL 2017 | PAGES 84 | 150/-


Editorial
EDITORIAL

Indias Renaissance
ABHAY KULKARNI
Managing Editor
AMIT TEKALE
Editor and Publisher

T
he United Nations Industrial Development Organization (UNIDO) has enlisted
NIRANJAN MEDHEKAR
Assistant Editor India as one of developing and emerging industrial economies in South Asia in
the 2017 edition of International Yearbook of Industrial Statistics. The yearbook
DESIGN also highlights that there has been a two-fold growth in Indias index of industrial
KIRAN VELHANKAR
Chief Designer production from 2004 to 2014. Although the pace of global manufacturing growth
PANDURANG KHUTWAD has consistently fallen in recent years, the growth rate in India was able to hold its
Senior Graphics Designer ground in the midst of slowdown in developed countries. Thanks to the improved
RAHUL PHUGE
Senior Graphics Designer confidence and kudos to the entire engineering community!
Indias manufacturing sector set aside the demonetization blues and expanded
ADVERTISING
PUSHKARAJ KHANDEKAR
at the quickest pace in five months in March 2017, driven by stronger ascents in
Account Manager / 98230 50302 output and new business, if we believe the Nikkei IHS Markit report released early
BHARAT RANADE this month. The Nikkei India Services Purchasing Managers' Index (PMI), which
Account Manager / 98229 91340
tracks the manufacturing and services sector output on a monthly basis, rose from
SAMEER KHALADKAR
Account Manager / 98902 33314 50.3 in February 2017 to 51.5 in March 2017. According to Nikkei IHS Markit, any
IUNUS SHAIKH reading above 50 indicates expansion in the sector.
Account Manager / 83900 69696 Both, output and new orders grew at the fastest pace since October 2016 on
SUBSCRIPTION strengthening demand conditions. Subsequently, most of the manufacturers raised
RAJESH GADRE their employment level in March, with the rate of job creation accelerating to the
Circulation Manager / 98236 96960
quickest in almost four months. And with the Goods and Service Tax (GST) regime
SUPPORT on the way, the manufacturing and services sector companies indicated that the
HANUMANT PAWAR activity is expected to rise further in the next 12 months.
Coordinator
VAIBHAVI PHUGE Manufacturing was once considered as one of the underperforming sectors
Senior Accountant in India. A former member of the Planning Commission of India had criticized
Industrial Product Review monthly is owned by MediaNext the functioning of Planning Commission as a hoary institution, for not making
Infoprocessors Pvt. Ltd., printed and published by Amit Tekale, underperforming sectors perform to their fullest. The former member has faith in
printed at Akruti, 31B, Parvati Industrial Estate, Pune - Satara Road,
Pune 411009 and published at 2117, Sadashiv Peth, Vijayanagar the newly constituted NITI Aayog (acronym for National Institute for Transforming
Colony, Pune 411030 India) which replaced the Planning Commission, and considers it as a paradigm
Editor Amit Tekale shift in Indias development policy regime. Borrowing from the idea of economist
All rights reserved. Printed in India.
and Principal Economic Advisor in the Finance Ministry Shri. Sanjeev Sanyal, lets
MediaNext Infoprocessors Pvt. Ltd., hope that now is the time for Indias renaissance.
2117, Sadashiv Peth, Vijayanagar Colony, Pune 411030.
Tel: 020 - 2433 6960 / 9002 | Helpline: 98236 96960 / 95953 36960 And here we present the first issue of the new-age industrial monthly, Industrial
Email: sales@iprmagazine.com | Web: www.iprmagazine.com Product Review (IPR). IPR endeavours to become an integral part of the industrial
Annual Subscription: 1,800/- (Details inside) ecosystem, enriching and empowering its readers the key decision makers. In
The contents of the publication may not be reproduced or transmitted in any form, either
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nature without prior written consent. Weve compiled the best content ever for an industrial magazine and hopeful
that it passes the briefcase test! Wish you all a wonderful financial year ahead.
Industrial Product Review (IPR) does not claim any copyright whatsoever on the articles
reproduced under Creative Commons Attribution License. The copyright of all such Happy Reading!
contributions remain with respective author/s.

Industrial Product Review (IPR) receives unsolicited materials (including letters to the AMIT TEKALE
editor, press releases, promotional items and images) from time-to-time. Industrial
Product Review, its affiliates and assignees may reuse, reproduce, publish, republish, Editor and Publisher
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or medium whatsoever without compensation of any sort.

Industrial Product Review (IPR) accepts no responsibility or liability for claims made for
any product or service reported or advertised in this issue. ACKNOWLEDGEMENTS
DISCLAIMER Douglas Lee, Publisher, World Industrial Reporter, New York, USA
This publication is for informational purposes only. The content and expert advice Priyam Saraf, Economist, Trade and Competitiveness, World Bank Group, Washington DC, USA
presented are not intended as a substitute for informed professional engineering advice.
You should not act on information contained in this publication without seeking specific
Mayya Revzina, Publishing Rights Manager, World Bank Group, Washington DC, USA
advice from qualified engineering professionals. Sylvia Blmker, PR Manager, K.A. Schmersal GmbH & Co. KG, Wuppertal, Germany
Fotios Petropoulos, Logistics and Operations Management Section, Cardiff Business School, Cardiff University, UK
Some products, solutions or services mentioned in this issue may not be available in India Nikolaos Kourentzes, Department of Management Science, Lancaster University Management School,
Lancaster University, UK
We acknowledge support of: Konstantinos Nikolopoulos, Bangor Business School, Bangor University, UK
Milind R. Joshi, Founder, Asian Academy of Professional Training, Pune, India
Vinayak Vaze, Founder and Director, Vaze Placement Services, Pune, India
www.worldindustrialreporter.com We would like to extend our sincere gratitude towards all the contributors, advertisers, advisors, associates, readers and well-wishers.
INDUSTRIAL PRODUCT REVIEW 5
www.iprmagazine.com | April 2017

Cover Story ........................................... 12 Trends ...............................................................................53 Product Review....32

IN THIS ISSUE
Case Study Legal Aspect Company Prole
8 Mobile and Safe: Tailored Safety
68 National Green Tribunal (NGT)
24 Kumbhojkar Plastic Moulders:

Technology Supports the Flexibility for Environmental Justice Quality Engineering Plastic
of a Welding Cell Products at your Finger Tips
R&D Falcon Exim: Importer and supplier
Cover Story 24
74 Researchers Create Thermally
of barcode printers, scanners and
Automotive in South Asia:
12 Conductive, Stretchable Rubber softwares
From Fringe to Global (Part - 1)
Cloud ERP Asia Automation:
34
Interview Leader in Industrial and
77 B
enefits of Cloud ERP for SMEs
Process Automation
We let Manufacturers Focus on
26

their Core Competencies than Beyond Factory Walls Tuffplast: Pioneer in
35

Worrying about Logistics Healthy Activities for your Entire Family Moulded Products
80
Dr. Jitendra Joshi, Chairman, Anant Rubber Products:
41

Abhi Group of Companies Product Review Manufacturers of Moulded Rubber
6 Ultra-Compact IPC for Extreme
Goods, Since 1984
End All your Visa and Travel Worries
72 Space-Savings and Flexibility Kalbag Filters: Leading
with BTW Visa Services 61

32 Schunk Introduces Clamping Pins
Manufacturers of Resin
Vishal Terkar, CEO,
for Efficient Direct Clamping Bonded Cellulose Cartridges
BTW Visa Services
GARANT MasterSteel SlotMachine:
67 71 D
rytech Engineering: Total
Research Article Steel has found its master Solution Engineers for
Another Look at Estimators for Compressed Air System
42
Intermittent Demand Product Preview Green India Products:
71
Alfa Laval launches new rotary tank
36 Caring for Environment
Trends cleaning machine
Industry 4.0: The Future of 75 A
utomatic Electric Ltd. (AE):
53 Trumpf Launches 3D Metal Printer
37 75 Years of Excellence in
Manufacturing TruPrint 1000 Power System Equipments
ERP GE Digital Announces Unique
37 Fortune Solar Energy:
76
Manufacturing Software - WIP Manager Concept and Benefits of
56 Propel to New Heights with

SAP Business One Kennametal introduces Spindle

Rooftop Solar System
38
Connection KM4XTM for Asian Academy of Professional
79
New Technology Titanium Machining Training: Carving Skilled
62 Use of High Efficiency Mist Cooling
A
BB Robotics launches Compact
Manpower for Industry
38
System for Power Plants foundry Robot
40 Multi-Carrier Transport System by

Festo and Siemens

This magazine is available on


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ubscription Form www.magzter.com
6 INDUSTRIAL PRODUCT REVIEW
Product Review www.iprmagazine.com | April 2017

Ultra-Compact IPC for Extreme


Space-Savings and Flexibility
Beckhoff recently launched Universal that further extends application
possibilities of PC-based control hardware.
Ultra-compact and flexible

PHOTO: WWW.BECKHOFF.CO.IN
The new, ultra-compact C6015 IndustrialPC is
designed for universal use in automation, visualisation
and communication tasks, as well as in EtherCAT-based
applications. As an exceptionally inexpensive, compact
and flexibly-mounted solution, it opens up new
application areas for IPC technology, especially those
with pronounced cost or space restraints. Fully suited to
industrial applications, the multi-core IPC measures just
82x82x40mm, demonstrating the extensive scalability of
PC-basedcontroltechnology from Beckhoff. of standard features for industrial environments such as
The ultra-compact C6015IPC is only one third the size extended operating temperature range up to +55C and
of the C6905, previouslythe smallest control cabinet IPC high resistance to vibration and shock.
in the comprehensive Beckhoff portfolio. Price savings of The C6015 is also extremely flexible with regard to its
approximately 25% also place the device well below the many installation options. It can be mounted both vertically
previously least expensive x86PCs from Beckhoff. With and horizontally on the rear wall of the control cabinet,
these features, automation, visualisation and system-wide or attached to a DINrail. Even in the tightest installation
communication in small and mid-size applications can spaces, thisallows various mounting scenarios with flexible
be implemented highly cost-effectively with a minimal orientation of the IPC. Duetothe small dimensions of
footprint. As a result, the compact device opens up areas of the device, this represents an important feature: when
use where PC-basedcontrol technology has not been used connecting up to six separate cables, it is crucial with the
thus far, or where motherboards are commonly integrated small design thatthe connection level can be optimally
as expensive custom solutions. aligned to the cable routing, which is usually dictated by
the machine layout.
Uncompromising industrial Apart from that, the full range of equipment and
the interface configuration meetthe requirements
compatibility for a universally applied IPC: a30GBSSD and
Despite its extremely compact and inexpensive WindowsEmbedded Compact7 operating system
implementation, the ultra compact C6015 IPC makes no support make the C6015 apowerful device even in the
compromises when it comes to industrial compatibility. basic configuration. Windows7 and Windows10 arealso
This includes the high computing power of the integrated optionally possible. Further hardware features include
IntelAtomCPU that features up to four processor cores. 2GBDDR3L-RAM (expandable ex-works up to 4GB),
Moreover, the IPC is designed as a passively cooled device a display port connection, an on-board Dual-Ethernet
in a robust, aluminium/die-cast zinc housing, offering adapter with 2x100/1000Base-T connection and ports for
long-term availability. The device also offers a full range both USB3.0 and USB2.0.

BeckhoffAutomation Pvt. Ltd.


Suite 4, Level 6, Muttha Towers,Don Bosco Marg, Pune 411006
Tel: 020 - 4000 4800 | Email: info@beckhoff.co.in | Web: www.beckhoff.co.in
8 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

Case Study

Mobile and Safe


Tailored Safety Technology Supports
the Flexibility of a Welding Cell
The mobile welding cell from the Guttroff Group of Companies offers a whole load
of technology in a compact space, is delivered in no time and is enormously flexible
in terms of potential applications. The user can select whether to buy or rent the
welding robot to go and in either scenario gains access to welding know-how and
services. The safety technology selected by Schmersal provides substantial support
for the automated cell in terms of flexibility.

T
raditional company Sauerstoffwerk Friedrich Guttroff GmbH
with headquarters in Wertheim-Reicholzheim, Germany offers
not only a comprehensive range of technical and medical gases
but also a wide range of welding and automation technology.
At the companys site in Pneck in Thringen, company activities
focus on welding technology. Factory manager Thomas Weber explains:
Since 2005, we have been expanding our range to include made to
measure robot systems for automatic welding after noticing a growth
in demand in this area. Not least because it is becoming increasingly
difficult to find qualified welding engineering experts. Guttrof buys
the robots from Fanuc and the welding systems from Fronius. With
these basic elements, Guttroff develops and produces complete
robot welding stations to the individual requirements of its customers,
including the necessary equipment such as consoles, trolleys and rotary
tilting tables.
But the know-how we can offer our customers on welding
engineering is more important than the hardware. Starting with a
feasibility study, i.e. the question as to whether the relevant material or
PHOTOS: K.A. SCHMERSAL GMBH & CO. KG, WUPPERTAL

component can be welded, through training and welding qualifications


in accordance with DIN EN ISO 9601-1 through to risk assessments in
line with the Machinery Directive and CE declarations of conformity,
explains Thomas Weber. Buyers of Guttroff welding robot systems
include those in the automotive supplier industry, steel construction
and ship and container building.
As well as these customer-specific solutions, Guttroff also launched
a standard module mobile welding robot cell three years ago.
The cells, which measure 2300 x 2200 x 2300 mm (D x W x H)
contain a Fanuc Arc Mate 100 IC welding robot and form a completely
sealed, fused unit. In the cell, the robot can process components
with a size of up to 1.30 m wide by 50 cm deep and 50 cm tall, with a
maximum weight of 250 kg. The packaging industry places special requirements on machine safety
INDUSTRIAL PRODUCT REVIEW 9
www.iprmagazine.com | April 2017

Safety light curtain protects operators


Parts are loaded and removed using a turntable which rotates in
and out around 180 through a window-like opening in the cell.
The rotation takes under four seconds. While the robot is working in
the cell, the opening remains closed. But the user can load the external
section of the turntable while the system is operational. As soon as the Contribute to IPR
window opens and the finished parts are provided for removal, the area www.iprmagazine.com/contribute
around the turntable is secured with an SLC420 safety light curtain from
Schmersal, the Wuppertal-based specialists in machine safety.
The opto-electronic safety systems in the SLC240 range are
very robust, as the transmitter and receiver are built into two sealed Send your press releases, papers, articles to us at
sensor profiles. The multiple scanning with the infrared beams offers sales@iprmagazine.com
high availability given the interference light produced by the high-
intensity UV welding light. In the Gutroff welding cell, the infrared
beams are forwarded to the receiver via two deflector mirrors to form
a square-shaped protective field around the turntable. If a person
breaks the safety field, a stop signal is immediately triggered in order
to stop the robot. The safety signals are evaluated directly by the
robot controller.
This opto-electronic safety solution obviates the need for a fixed
safety fence around the turntable. This has the benefit that, when the
robot is operational and the cell is closed, the turntable is accessible
to the operator from all sides for loading and unloading. For example,
heavy components can be hoisted from all three sides onto the
turntable using a crane. For the operator, side loading means shorter
working distances.
While the transmitter and receiver of the SLC 420 are
permanently installed in the cell, the deflector mirrors are mobile
units which can be repositioned if the cell is moved in order to set up
the square-shaped protective field.
The SLC420 safety curtain is a very efficient solution for securing
the area of the Gutroff welding cell. At the same time, it offers the
10 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

Conclusion
For series protection of components in high unit numbers, the
mobile welding cell is a very economical solution, stresses Thomas Weber.
This is a very space-saving system. The Fanuc robot, for example, is fitted
with an internal hose packet so it can work in a very confined space.
The fact that the welding cell can easily be moved to a different location
within a production company provides a high level of flexibility. The cell
is also supplied as a turnkey solution, including the extraction system and
the safety technology described. All the user has to do is to connect it to
the supply media of gas, electricity and compressed air. The all-round
service package we also offer is also a benefit to our customers.
We take over the planning of the cell and the programming of the
components to the customers requirements, plus we provide training for
the operating personnel. We also offer a 24-hour on-site service so we can
resolve any problems as quickly as possible, explains Thomas Weber. And
anyone who wants the welding robot to go for orders with lower unit
Thomas Weber (left), Plant Manager at Sauerstoffwerk Friedrich Guttroff numbers need not buy it, they can also lease it. More flexibility is hardly
GmbH and Hans-Jrgen Seyfert, Sales Manager at K. A. Schmersal GmbH & possible.
Co. KG
best personal protection for the operators of the system, explains New range of safety light barriers
Hans-Jrgen Seyfert, Sales Manager at Schmersal. The new SLB 240/440/450 range of safety light barriers, which
Schmersal will be showcasing at SPS IPC Drives, have built-in analysis
Reliable securing of access door and impressively small dimensions. This means the SLB 240/440 with
The welding cell is accessible via a door which is locked when in cable connection and dimensions of WHL 28x32x72 mm or with
used with an AZM300 solenoid interlock from Schmersal. One of the connector socket (WHL 28x32x91 mm) can easily be built into very
particular features of the AZM300 is the patented principle using a confined spaces and can be mounted quickly and easily even where
rotating shaft and a Maltese cross. It has the advantage that the safety space is short. SLB 240/440 have a range of 15 metres, while the SLB 450
door is pulled into the end position held virtually without play when (dimensions DL 49 x 126 mm) can achieve a range of up to 75 metres.
closed. The solenoid interlock operates as an integrated guard catch All SLB light barriers have safe semiconductor outputs (2 x PNP) and
hence removing the need to fit a separate one. can be included directly into the safety circuit, even without external
The integrated latching function ensures the guard stays in its safety evaluation. All versions have a visual set-up guide which makes
closed position and doesnt open when the interlock is released. The commissioning significantly easier. By developing the new SLB range,
locking force can be increased from 25 to 50 N simply by rotating we are completing our range of opto-electronic safety equipment
the cross around 180. There is also an option to deliver the solenoid products.
interlock with emergency exit release, reports Hans-Jrgen Seyfert.
An RFID sensor is used for the safe identification of the actuator, Depending on the size and complexity
this has three different levels of coding and therefore also enables Of the hazardous area, the customer can choose between light
tamper protection. In the basic version, the sensor accepts any barriers in the SLB range, multi-beam SLG light barriers or light curtains
suitable target from the RSS family. A second version for increased in the SLC product range, explains Klaus Schuster, who is responsible
protection against tampering reacts only to an individually assigned for safe opto-electronics products at Schmersal. Depending on the
target. The teach-in process can be repeated as often as required. application, these opto- electronic ranges can then be combined with
Finally, a third version is available for maximum protection against safety relay modules, safety controllers or AS-i system components. This
tampering; this version only accepts the target that was taught-in means we can offer our customers complete safety systems, tailored
when it was first switched on. Here the allocation between sensor and solutions which are completely customised to the requirements of the
target is irreversible. This means the AZM300 achieves a coding level relevant application.
of high in accordance with ISO 14119. The Tesk hinge switch from
Schmersal provides additional manipulation protection on the other (Technical article by K. A. Schmersal GmbH & Co. KG, Wuppertal,
side of the safety door. Germany. Reproduced with due permission. )

Schmersal India Pvt. Ltd.


Plot No. G-7/1, Ranjangaon MIDC, Tal. Shirur, Dist. Pune - 412220
Tel: 02138 - 614700 | Email: info-in@schmersal.com | Web: www.schmersal.in
INDUSTRIAL PRODUCT REVIEW 11
www.iprmagazine.com | April 2017
12 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

COVER STORY

Automotive in South Asia:

From Fringe
to Global (Part - 1)
PHOTO: SHUTTERSTOCK
INDUSTRIAL PRODUCT REVIEW 13
www.iprmagazine.com | April 2017

The automotive sector is one of the


most important industries globally
and in South Asia, contributing 19
million of direct and indirect jobs in
India alone. This extended version
of the Industry Case Study done for
South Asias Turn: Policies to Boost
Competitiveness and Create the Next
Export Powerhouse by the World
Bank Group identifies both reasons
for success and limits on the growth
of automotive in South Asia, and
recommends policies to enhance its
growth. Industrial Product Review
(IPR) presents this extensive case study
by Priyam Saraf as a two-part series.

PRIYAM SARAF
Economist, Trade and Competitiveness Global Practice,
World Bank Group
psaraf@worldbank.org

Key takeaways
The analysis focuses primarily on the experience of India
and Pakistan - two of the biggest markets in South Asia - to
understand key trends for the region, and compares their
performance with China and Vietnam.
The study finds large productivity gaps in this sector,
with most OEMs having fragmented operations with low
capacity utilization, quality levels and investments in skills
below international benchmarks.
A secondand connectedchallenge is moving up the
global value chain (GVCs) through greater innovation,
investment in R&D and commercialization of new products
which remain below global average.
The report relies on the latest available data and tools as
well as new evidence collected from semi-structured surveys
and primary interviews with the senior executives, middle
management and plant-level technical staff in a cross-
section of automotive firms.
The study documents, in particular, experiences of leading
auto-parts manufacturers who distinguished themselves
by achieving scale and operational excellence by linking to
GVCs.
The study summarizes policy recommendations to
unblock the barriers to achieving higher productivity with
job-creation, and move from a domestic growth under
protection model to a more sustainable productivity driven
global growth model.
PHOTO/S USED IN THIS ARTICLE ARE FOR REPRESENTATION PURPOSE ONLY
14 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

Executive summary 1. Motivation and methodology


T he automotive sector is one of the most important industries
globally and in South Asia, contributing 19 million of direct and
indirect jobs in India alone. The study uses experience of India and
The auto sector -including the auto parts industry-
is a key contributor to jobs and economic growth in
India and Pakistan. The Indian automotive sector is
Pakistan, two of the biggest markets in South Asia, to understand one of the top five industries in the economy in terms
key trends for the region. of factory gross value,1 is the sixth largest producer of
The potential for South Asia to become globally competitive vehicles globally, attracted US$12.3 billion of cumulative
in this sector is shown by the experience of Indian auto-parts foreign direct investment (FDI) between 2000 and 2015,2
manufacturers who became world leaders by having first acquired and supported 19 million people in direct and indirect
technical and managerial skills from leading original equipment employment in 2012. Pakistans auto industry is the sixth
manufacturers (OEMs) established in India, followed by a process largest manufacturing subsector; the passenger cars
of serving increasingly discerning customers in competitive export segment alone provided employment to 23 million
markets. Although level of investment in R&D remain low, a few people directly and indirectly3 (the market for, and
leading global manufacturers are moving their R&D centers to employment in, auto parts may be under estimated
India pointing to the regions potential to be at the heart of the because of the large presence of informal firms).4
technological revolution taking hold in this critical industry with This case study focuses on the automotive sector
important ramifications to many otherse.g. electronics, machining in India, and to a lesser extent, Pakistan (the two main
and tooling. automotive producers in the region). It focuses on the
The challenge for the region is two-fold. First, to spread these auto value chain, including OEMs (assemblers and final
world class firm capabilities throughout the industry, from OEMs customers in manufacturing), Tier 1 firms (typically
and tier 1 to tier 2 and tier 3 suppliers. In effect, large productivity large firms who play the role of integrators and supply
gaps persist in the sector, with most OEMs (together with their critical components), Tier 2 firms (suppliers of individual
suppliers) having subscale/fragmented operations with low parts to Tier 1s and OEMs), and Tier 3 firms (raw material
capacity utilization, quality levels and investments in skills below providers). It excludes services aspects of the value chain,
international benchmarks. A secondand connectedchallenge such as dealer networks and after-service as the focus
is moving up the global value chain through greater innovation, is on design and manufacturing activities. The paper
investment in R&D and commercialization of new products which focuses on passenger cars, which has by far the largest
remain below global average, with local suppliers primarily relying share of the vehicles markets, but it touch on commercial
on build to print models. vehicles (India) as well as motorcycles and tractors
Policies such as high import tariffs on completely built units (Pakistan) where useful. China, and in a limited number of
(CBUs) of passenger cars, which helped attract market-seeking cases Korea and Vietnam, are used as comparators.
OEMs in the 1990s and 2000s, are now slowing down the spread
of world class managerial good practices. The situation is worse 2. Performance of the auto sector in
in Pakistan than India because only a few OEMs are competing
behind even higher import tariffs on both CBUs and auto-parts. The
India and Pakistan
experience of the Indian auto parts and commercial vehicle sectors Although the sector experienced rapid growth in
shows that a gradual reduction of import tariffs, far from leading both India and Pakistan in the 1990s and 2000s, growth
to the debilitation of an industry, could be a powerful catalyst to has markedly slowed down in recent years, exports remain
its global success. Converging towards international environmental only a small fraction of production, and productivity is well
and safety standards, as the Indian government is planning to do, below levels in East Asian countries, including China. In
would further encourage automotive firms in South Asia to adopt the next section, the paper discusses the performance of
(and contribute to) international good practices. These reforms the sector with regard to output, trade, and productivity.
complemented with continuing to ease the trade-logistics barriers
within India which contribute to the fragmentation of the industry
and raise operational costs; providing assistance to help small and
medium enterprises (SMEs) develop linkages to value chains and
clusters, to improve their operations; and, supporting programs 1 SIAM and BCG Report 2013.
for innovative design and R&D activities in the value chain will 2 Annual Survey of India (ASI) 20122013; Statistics from
enable the region to fulfill its great potential in this key and rapidly Department of Industrial Policy and Promotion (DIPP) 2015.
globalizing industry. 3 Presentation on Regional Competitiveness Study on Auto
The automotive sector in South Asia is now ready to move from Sector, Institute of Development and Economic Alternatives
2015.
a domestic growth under protection model to a more sustainable
4 Pakistan does not appear in the top 40 producers of OIAC
productivity driven global growth model.
ranking.
INDUSTRIAL PRODUCT REVIEW 15
www.iprmagazine.com | April 2017

Figure 1: Auto parts sales in India (in US$, billions )

140
115
120
100
85
80
66
60 54
40 42 41
40 35 34 31
26 23 19 30 27 30
22
20 12
4 4 3 5 9 9
0
2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

2015-2016

2020-2021
Total Sales Domestic Export
Source: ACMA, SIAM Reports (2013-2015)

2.1 Output is a large share of the overall auto market (see Figure 1).8 The total
A combination of size, growth, potential, and protection has number of auto parts producers is over 2,500, out of which 500600
made India one of the most attractive auto markets in the world, are in the organized sector and contribute to 70% of production
and several global OEMs from East Asia, Europe, and the United (including exports).9 Remaining production capacity served after-
States have installed production bases in the country. The Indian markets and commoditized parts markets, which are typically less
auto industry grew at a compound annual growth rate (CAGR) of demanding on quality standards. The Indian auto parts sector is
1115 percent between 2005 and 2015, with a marked slowdown characterized by a few large players that can produce at export
since 2012. By volume, India ranks sixth among the worlds quality, while functioning in a sea of highly fragmented, organized
markets for four wheelers, second for two wheelers, and eighth for and unorganized firms.
commercial vehicles. In 2013, India claimed around 4 percent of By contrast, the production of passenger cars in Pakistan is at
global car production, the largest segment by value and volume,5 one-third of the Indian level (on a per capita basis) and has been
and captured 9.3 percent of total growth in the auto industry from stagnant since 2006. However, motorcycle production has been
2005-13. Although this is impressive considering past performance, rising. The penetration for passenger cars is 30-40 percent lower
China achieved a 26 percent share of global production in auto than in India. From a low base, the production of motorcycles
and accounted for over 80 percent of the growth during this has increased tenfold since 2001, reaching 2 million in 2014,
period.6 With penetration rates in India 50 percent of Chinas levels, since 2005 boosted by the entry of new firms, including Chinese
a growing middle class, incomes improving faster than car prices, clones. However, Pakistans motorcycle market is still being mainly
new investments in infrastructure and other favorable demand supplied by Honda (50 percent) and a series of local brands. There
drivers, there is significant potential for further growth in Indias are about 115 players in this market, and about 80 of them are
automotive sector. currently active. Pakistan ranks within the top 10 in the world for
Auto parts in India increased by 11 percent a year from 2010- motorcycles (in volume).
2015, with 70 percent of production coming from the organized
sector and a rising share of exports.7 This submarket grew in absolute 2.2 Trade
terms and in trade flows following the gradual reduction of import The shares of production devoted to exports in the Indian and
tariffs in 1990s. Size estimates of the auto parts industry vary, but it Pakistani auto sector are low (Figure 2). Even though India is the
was estimated at around US$20 billionUS$41 billion in 2013, which

8 SIAM BCG Report (2013) pegs it at US$20 billion while ACMA figures
show it is US$39 billion. It probably falls within this range.
5 SIAM Statistics Report 2015; ACMA Presentation 2014.
9 World Bank Enterprise Survey, India 2014. Among the 500+ firms
6 LeBeau 2014.
surveyed anonymously in the Enterprise Survey, 6070% are auto parts
7 ACMA Presentation 2014; Narayan, B.G. et al. 2008. firms, remaining includes large OEM players and other firms.
16 INDUSTRIAL PRODUCT REVIEW
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Figure 2: Share of exports in production in the automotive sector (in %, 2014)

25.0
20.4
20.0

15.0
10.6 9.4
10.0
7.1
4.6 4.5 4.5 4.4 3.8
5.0 3.1 2.8 2.5 2.5
1.9 1.7 1.6 1.6 1.5 1.5 1.3 1.1 0.8 0.8 0.7
0.0
y
an
A

Ca o
da

rea
at ce
n
ain
ina
ly
cho gium

Po a
Hu d
Th y
Slo nd
Sw ia
n
key

eth ia
ds
zil
Ro ia
nia
an

ui

ar
xic

lan
tai

de
US

Ita

vak

e N str

Ind
Gre ran

an
Bra
na
Jap

a
vaq
Ch

ma
Sp
Ko

ng

Tur
rm

ail

ee
Me

Bri

Th Au
erl
Cze Bel
F
Ge

slo Source: WITS-UNCTAD, 2014

worlds sixth largest auto producer by volume, and auto exports or auto parts, which are charged an import duty of 12.5 percent. 12
increased at 18 percent per year over 2009-2013, India owns less By contrast, the tariff on completely built units (CBUs) of passenger
than 1% of global export markets. This is attributable to Indias large cars is as high as 60 percent (compared to 25 percent in China, and
domestic market, as it is easier for auto firms to fulfill domestic a mere 7.9 percent in Korea), so that most car imports are premium
demand than export (India exported less than 20 percent of its vehicles from Germany (41%) and UK (21%). Although imports of
passenger vehicle production in 2013). Among BRIC countries, only auto parts increased from US$8 billion in 2009 to US$13 billion in
China has been able to achieve a substantial share of the global 20132014,13 the net trade in auto parts has remained constant due
auto markets despite having a large and growing domestic market. to the concomitant rapid rise of exports.
The average auto firm in India exported only 5 percent of its total Pakistan has higher import tariffs than India. The import tariff on
sales, compared to 16 percent in China. However, if we look at only motor vehicles in Pakistan is 76 percent, compared to 60 percent in
exporting auto firms in India, the share of exports to annual sales India, and the tariff on auto parts is 35 percent, compared to 12.5
rises to 1516 percent. Intra-region trade for India is not significant, percent in India. The simple average tariff on all vehicle imports
with the closest largest automaker Pakistan being a relatively closed in Pakistan is 40 percentalmost twice the average nominal tariff
market. Pakistan did not feature in the top 40 exporters in 2014. rate in India.14 High tariffs have sharply limited the import of motor
Auto parts manufacturers have a higher share of exports to vehicles to only US$689 million. While most of the components
production compared to OEMs. Nearly 44 percent of auto parts used for local car manufacturing are imported, motorcycles and
produced in India is exported, as opposed to less than 20 percent tractors largely are built with locally-sourced components because
of final cars. Exports of auto components increased by 15 percent a they rely on old technologies. At the same time, high protection
year from 2009-2014,10 a higher rate than production growth. The has discouraged production for export. Pakistans most noticeable
OEMs and Tier 1 firms accounted for 80 percent of end customers, exports in the broad automotive industry are tractors and auto
indicating high quality demands at the customer end. Less than partsbut at very low levels of US$36 million and US$22 million
a decade ago, only 35 percent of parts were going to the OEMs, respectively. Furthermore, most of its exports consist of low
with the rest going to the after-sale market. Even with this progress, value parts for the after-sale markets and tractors relying on old
Indias share of global auto parts exports is only 1 percent, while technologies, mostly destined to Afghanistan.
Chinas is 10 percent and Koreas is 2.5 percent, implying a significant
potential for further growth.11
Import tariff structures are different for auto parts vs. vehicles in
India. The bulk of automotive imports are either commercial vehicles
12 In the 2015 budget, the government of India increased the import
tariff on commercial vehicles to 40 percent to help boost domestic
production.
10 ACMA and McKinsey Report 2014. WITS-UNCTAD puts auto part exports 13 Ibid.
at US$2 billion in 2009 and US$6 billion in 2014.
14 TRAINS database, downloaded from WITS-UNCTAD, September 28,
11 Ibid. 2015.
INDUSTRIAL PRODUCT REVIEW 17
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Figure 3: Value added per worker (US dollars)

$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$-
All Automotive Auto Exporters Auto Non-exporters

India China Pakistan Vietnam


Source: World Bank Enterpris e Surveys (India 2014; China 2012; Pakis tan 2013, and Vietnam 2009)

2.3 Productivity a few models, high volume strategy to achieve scale. However, in
Value added per worker in Indias auto sector is higher than in both India and Pakistan, restrictive labour regulations (firing laws),
Pakistan, but less than one-third the level in China (Figure 3).15 Chinas rigidities across labour markets and policies that influence size
higher productivity is not only due to its earlier start in developing considerations, have contributed to a concentration of small and
the auto sector and its higher per capita income (and thus greater medium firms that neither grow nor exit the market. Exporting
investment in automation than the relatively low-wage South Asian firms, most of which are large, also have higher productivity than
countries), but notably higher scale, capacity utilization, and quality. firms producing for the local market (see section 3). Finally, foreign-
These factors are discussed in greater depth in Section 3. From 1993 owned firms tend to have greater access to advanced technology,
to 2004, the growth rate of TFP in Chinas automotive sector was which can provide an edge in productivity. Leading firms report that
6.1 percent per year, compared to only 1.1 percent in India, and the alliances with foreign firms through technological collaboration
growth rate of labour productivity 9.8 percent per year, compared to and/or joint ventures provide access to new technical knowledge.
3.1 percent.16, 17
Size, export orientation, and share of foreign ownership of auto 3. Drivers of competitiveness
firms are positively associated with productivity in both India and
Pakistan. The relationship between size and productivity, which is
(productivity) within and across firms
expected in the capital-intensive auto sector, is confirmed by the As the impact of labour and capital market rigidities on South Asian
economic literature and field interviews in both countries.18 Large manufacturing have already been covered in the economic literature,
auto firms in the two countries are able to achieve economies of scale, this section will focus on firm-based and across-firm determinants of
start captive skill development centers for managerial training, and competitiveness. This section considers scale and capacity utilization,
spend more on innovation and R&D. Size is so critical in this sector quality, skills, and innovation as drivers of competitiveness within
that leading firms choose to locate close to their buyers to receive firms, and spatial arrangement/clusterization and linkages to GVCs as
repeat, big orders, expand into international markets and follow drivers of competitiveness across firms. The mechanics behind these
drivers will be illustrated via evidence collected from semi-structured
surveys and primary interviews with the middle management, senior
15 World Bank Enterprise Survey, India 2014, which surveyed over 500 auto executives and plant-level technical staff of leading suppliers that
firms, including both OEMs and suppliers; World Bank Enterprise Survey, managed to scale, innovate and get linked to GVCs. Motherson Sumi
China 2012. Ltd. (MSSL) and Bharat Forge are Tier 0.5/1 integrators that feature
16 Bosworth, B and Collins. S.M. 2008. Accounting for growth: Comparing among the top global suppliers from India. Sandhar Technologies
China and India, Journal of Economic Perspectives, 22 (1) (2008). (Sandhar) and Hi-Tech Gears Ltd. (HTGL) are Tier 2 component
17 The sample size for exporting firms in Pakistan and Vietnam is too small suppliers that are leaders in their product categories. A more granular
to give us figures for value added. understanding of how leading firms succeeded is provided in boxes
in the following section and may provide useful lessons for how
18 Economic literature that links size to productivity for India includes
policy can foster success in similar contexts.
Bollard et al (2011) and Francis (2015).
18 INDUSTRIAL PRODUCT REVIEW
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Table 1: Volume and capacity utilization of OEMs in India


Companies Production Current capacity Planned Timeline Total investments Exports (in units)
capacity (in units) utilization expansion (in (in rupees crore)
(inpercent) units)
Maruti Suzuki 1,500,000 86.16 1,500,000 2017 37,000 121,701
Hyundai 700,000 87.41 Installed 9,471 191,221
Honda cars 240,000 82.27 60,000 2016 385 8,398
Mahindra 545,000 42.35 200,000 N/A 4,000 6,842
Ford 200,000 78 240,000 2016 6,200 81,703
Toyota 310,000 51.28 Installed 5,920 17,650
Fiat-Tata 200,000 5.2 Installed 4,113 39
Volkswagen 200,000 55 Installed 3,865 69,994
General motors 282,000 19 12,000 2,011
Hindustan motors 63,000 N/A Installed 465 0
Mahindra Reva 30,000 N/A Installed N/A N/A
Mercedes-Benz 20,000 N/A 2020 1,200 N/A
Tata motors 500,000 33 Installed 6,000 3,757
Skoda-Audi 40,000 37.5 (Skoda) Installed 888 0
BMW India 14,000 N/A 180 N/A
Isuzu 120,000 N/A 2017 3,000 0
Total 4,964,000 2,000,000 253,350 622,470

3.1 Scale manufacturing and capacity utilization to reduce costs production and low capacity utilization in all segments. By contrast, in
Scale and capacity utilization at the plant level are critical to China, 25 out of 27 OEMs are functioning above this level. In 2014, 47
success in capital-intensive industries. In the auto sector, large firms models were produced at annual volumes higher than 100,000 units,
(e.g. Maruti Suzuki and Hyundai in India) tend to be more profitable including 22 models at more than 200,000 units19.
and resilient to downturns than less scaled firms. We consider OEMs To make matters worse, capacity utilization is low in many
separately from auto parts suppliers, given that they face different OEMs. India produced around 4 million cars in 2013, compared
import tariffs. With the exception of commercial vehicles, the to production capacity of 6 million. Bullishness about the Indian
products of OEMs are protected by import tariffs of 60% in India market is revealed in actions of companies like Ford, which despite
and 80% in Pakistan, while tariffs for the auto parts market were losing around US$250 million in 2013, plans to invest US$1 billion
reduced from 60% to a current rate 12-20% in India, but remain high in Gujarat for a new vehicle assembly plant.20 A combination of
in Pakistan. excess capacityexacerbated by a marked slowdown in demand
since 2013multiple models and fragmentation of these market
3.1.1 OEMs segments has reduced profitability for global OEMs. In a bid to
Despite the importance of size for competitiveness in the auto improve utilization rates, Volkswagen started using India as an export
sector, most OEMs in India and Pakistan operate below efficient hub for Mexicojust to keep the plant operating at 75 percent
scale. Only four of the 18 OEMs operate at the industry standard for levels.21 GM announced they would shut down factories in India as
efficiency of 100,000 units per model. Most OEMs who are 100 percent they recorded one of their biggest losses in FY14: ~US$600 million.22
foreign-owned started by introducing existing models as a quick Accumulated losses by GM were equivalent to the cost of setting up
go-to-market strategy. Introducing an existing model was 1015 a car factory in India. Maruti, Honda, and Hyundai were the few OEMs
times cheaper (and many times faster) than investing in new design.
For the most part, these models were mid-range or premium cars
rather than high volume segments. Operating below optimum line 19 Maruti Suzuki Annual Reports (till 2015). Accessed on Aug 3rd 2015
capacity reduced profitability over time. In contrast, Maruti went for from www.marutisuzuki.com
a few models-high volume strategy: at least 3 Maruti models achieve 20 Vats 2014.
more than 200,000 units annually and are profitable. Hyundai, Honda, 21 Raj 2015. Roughly 50 percent of production out of VWs Pune plant is
and Mahindra & Mahindra also have managed to cross the 100,000 destined for exports this year
break-even mark. Except for tractors, Pakistan suffers from subscale 22 Ibid.
INDUSTRIAL PRODUCT REVIEW 19
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Figure 4: Share of firms with capacity utilization greater than 75% (India, China)

100% 93.38% 92.88% 92.25%


86.55% 90%
90% 80.17% 79.27%
80%
66.09% 69%
70% 60.72%
60%
50%
40%
30%
20%
10%
0%
Exporting Non-exporting Firm spending Firm not spending Average
on R&D on R&D
India China
Source: World Bank Enterprise Surveys (India 2014; China 2012)

that operated at efficient scale in 2014-2015 (see Table 1). Capacity Typically, low capacity utilization among OEMs in a vertically-integrated
utilization among the OEMs in Pakistan is below 50 percent, and scale industry like automobiles is reflected in low capacity utilization
is small as the total production capacity (280,000 units) is spread over among suppliers. In India, however, low tariffs on imported auto parts
3 OEMs and 6 model platforms (see Table 2). encouraged (or sometimes, compelled) suppliers to expand their
footprint in export markets to diversify customer risk and acquire new
Table 2: Capacity utilization in key automotive categories in technologies.
Pakistan23 Leading suppliers sought to reduce the buying power of their
Indian OEM customers by diversifying through exports. For instance,
Capacity (Units) Rate of Utilization (%) in the 1990s, almost all of Motherson Sumis (MSSL) turnover was
Assemblers bought by Maruti. MSSL decided to diversify its risk so that No single
Cars 279,040 43.6 customer, country, or component constitutes more than 15 percent of
Motorcycles/Rickshaws 2,165,000 69.1 the turnover. Maruti, which had 85 percent of the total Indian market
Tractors 67,000 110.2 in the 1990s, now has less than 56 percent25. Bharat Forge followed
a different strategy of investing in non-auto sectors such as oil and
Trucks/Buses 10,800 40.3
gas, railways, power, and defense, among others.26 In 2013, revenue
Indian and Pakistani firms achieve lower capacity utilization from non-auto sectors in India was close to 40 percent of the total. In
than their Chinese counterparts. Less than 70 percent of auto firms addition, both MSSL and Bharat Forge acquired and set up subsidiaries
in India report capacity utilization rates of above 75 percent, while in sophisticated auto markets outside India (for example, Germany). In
over 90 percent of Chinese auto firms exceed this level (figure 4). The a large domestic market with few OEMs, Hi-Tech Gears Limited (HTGL)
gaps between China and India are smaller for exporting firms and also realized it stood the risk of getting locked in to one customer, and
for firms that invest in R&D. Local firms that do not export or do not started to diversify.
invest in R&D have much lower capacity utilization than their Chinese Diversification to exports may have improved profitability. According
counterparts.24 to a study of 95 Indian auto suppliers, firms in which exports accounted
for a large share of sales from 2005 to 2013 achieved a significant rise
3.1.2 Auto parts suppliers in profits, while firms that did not export, or where the share of exports
In India, more suppliers than OEMs have achieved efficient scale, was low, saw a sharp fall in profits (Table 3). Field surveys confirm that
high levels of capacity utilization, and participation in export markets. diversification not only helped to manage volatility in local markets, it
also helped these firms increase productivity.

23 PAMA (http://www.pama.org.pk/home/members), APMA (http://www.


motorcycleexport.com/) Presentation on Automobile Sector EDB. 23 25 Motherson Sumi Systems Ltd. Reports (till present). Accessed on Aug
PAMA (http://www.pama.org.pk/home/members), APMA (http://www. 3rd from www.motherson.com
motorcycleexport.com/) Presentation on Automobile Sector EDB.
26 http://auto.economictimes.indiatimes.com/news/industry/how-
24 In the Enterprise Survey, it is not possible to separate firms by size due baba-kalyani-is-making-bharat-forge-diversify-into-non-auto-
to sample size issues. However, there is significant overlap between segments/31512531#./31512531?&_suid=14449327764050782825669
export firms and size (large to medium). 3732645.
20 INDUSTRIAL PRODUCT REVIEW
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Table 3: Change in gross margins of Indian auto part suppliers


(2005 to 2013)27

Box 1: Leading firm case - Export as % of firm sales (2013) > 40 1540 < 15
Alliances for early investments in Change in gross margin for auto supplier in India +13 29 41
design and innovation (2013-2005) %

B reaking into GVCs requires technological innovation and


high level design capabilities. It takes either a proven track
record or knowledge of key technology to land a contract. After
The reduction in import duties on inputs enabled some leading
suppliers to begin exporting. Sandhar initially focused on increasing the
focusing primarily on supply of parts to Hero Honda for four volume of production, largely for the domestic market. Building exports
years, HTGL wanted to acquire the technology necessary to was expensive for a small company like ours. It meant learning what
diversify into exports. HTGL began a technical collaboration those customers want. We had to invest in it through exhibitions, a legal
arrangement with Musahi (Honda Motors, Japan) to learn framework, prototypes, travel, and technology. Inputs were expensive.
the new technologies involved in precision forging. It entered The decline in import duties enabled Sandhar to improve quality and
into a joint venture with GETRAG in the United States to reduce costs through importing intermediate inputs, which helped to
manufacture timing gears (which had the advantage of overcome some of the fixed costs of exporting28.
GETRAGs experience and access to American machines) and Many auto-parts suppliers achieved increases in production by
became a manufacturer of parts for Cummins from the United
serving sophisticated markets. Instead of increasing sales through
Kingdom, replacing their previous supplier. They started
manufacturing for the TATA Cummins unit in India, and now aftermarkets, these firms competed in export markets. Many players
they produce for firms in Germany and the UK. at that time went into aftermarkets because barriers to entry were low
Leading firms became expert at absorbing the technology and there was promise of high margins, but we avoided this route like
required to expand production of related products. Sandhar the plague. shared the MSSL senior executive. Working for a demanding
and MSSL began to produce inputs into their existing products customer meant that the firm was forced to be efficient, adopt
to upgrade and expand their product lines. For instance, if they international standards, and keep costs down.29 For Bharat Forge, exports
were making interior locks and needed zinc parts, Sandhar started as early as 1995 to the former USSR. They focused on forging
would improve their ability to work with zinc. If we do a good technologies. Exports challenged us to design, develop, manufacture,
job with locks, we would suggest we could handle their plastic and supply products to discerning customers in global markets.
needs. We had already built trust with the customer. That way, This in turn motivated us to scale up the value chain and adopt new
even if we havent made that product before, they would give
technologies, said the Bharat Forge senior executive.
us the order, said the senior executive at Sandhar. Once MSSL
had acquired a new technology and delivered to the customer, Exporting has been the key to productivity and growth. Essentially,
management would ask their engineers, What more could we firms that chose to ramp up production for export markets with
do with it? What would that take? MSSL expanded from basic demanding customers were able to diversify their customer base,
plastic components to building tooling and injection molding achieve scale and improve efficiency. For several others, lack of scale and
machines, to deliver complex plastic products. MSSL initially low capacity utilization among OEMs - and to an extent among auto-part
imported wires for their wire harness products, but then suppliers - limited the scope for new technology adoption/automation,
started to buy copper to manufacture wires. This allowed them with increasingly detrimental effects on innovation, design capabilities
to increase sales to existing customers and enter new products. quality and skills as one goes down the value chain.
Some firms found it profitable to adapt technologies
through collaboration with leading OEMs, while others 3.2 Focus on innovation, design, and R&D
developed new technologies in-house. For those who took
Firms that invested in the early acquisition of technology through
the alliance route, continuity in technology upgrades proved
challenging. Some firms managed to upgrade their design alliances were better positioned to participate in GVCs (Box1). Local firms
capabilities. Bharat Forge is an example of a leading firm that who have become global suppliers cite investments in design capability
has managed to break into design, engineering, R&D, testing, as a key asset. Local Tier 1s who did not enhance design capabilities have
and other higher value-added services. In 2000, the company begun to lose ground to those who became single source suppliers to global
established an in-house R&D team to produce lightweight OEMs, as design and contract allocation becomes increasingly centralized
products which would enable lower energy consumption and subcontracting of tasks increases. Markets in Slovak Republic, Brazil,
across business lines. Some products that were largely
imported, we can do it in house now, said the senior executive.
Many small firms have found it challenging to develop 27 ACMA and Mckinsey 2014 percent change on EBITDA on index of 100
integrated design and engineering functions. Sandhar would in 2005.
like to focus more on design and R&D. We cannot say we have 28 http://www.businesstoday.in/magazine/special/indian-firms-key-
very meaningful R&D internally. It is an area for us to grow suppliers-of-car-components/story/21374.html .
29 http://forbesindia.com/article/work-in-progress/how-motherson-sumi-
became-a-giant-auto-parts-manufacturer/34693/1.
INDUSTRIAL PRODUCT REVIEW 21
www.iprmagazine.com | April 2017

Figure 5: Expenditure on R&D (% of sales) in India Figure 6: Expenditure on R&D (India, China)
5.0% 4.70%

4.0% 100%

% of firms' reporting a "yes"


80%
3.0%
60%
% of sales

51%
45%
1.60%

1.50%
1.50%

2.0% 40%
1.30%

1.10%
0.70%
15% 21%
20%
0.40%

1.0%
0.10%

0%
0.0% Expenditure onR&D Technology licensed
TVS Hero Bajaj Maruti Global
motors MotoCorp Auto Suzuki average 2014 from foreign firms
2010-2011 2013-2014 2013-2014 India China

and Poland have already witnessed a demotion of local Tier 1s into Tier in which intellectual property rights associated with the research would
2s and Tier 3s. Global OEMs now expect design capabilities from firms at typically reside with the mother company overseas.
all levels of the value chain, because subcontracting makes sense only
when the supplier can be held responsible for entire modules of tasks. 3.3 High levels of quality control among Tier 2 and Tier 3 firms
During interviews, global Tier 1s mentioned that design capabilities The tightness of quality controls is uneven at the Tier 2 and Tier 3
are becoming critical factors in selecting Tier 2 subcontractors. Indeed, levels of the supply chain in India and Pakistan. In interviews with over
the global auto supply chain that was traditionally organized in tiers is 50 local auto firms in India, it emerged that high rejection rates may
facing a restructuring. Erstwhile Tier 1s are becoming large global firms, reduce profits by as much as 5 percent7 percent. Internal rejection
either specialized in complex systems or as integrators of several simpler rates are harder to quantify, as they need to be gauged during the
subsystems, constituting formation of a Tier 0.5. They are expected to production process. More than 70 percent of suppliers, mainly Tier 2
have substantial responsibility in the design of these systems and to
coordinate the supply chain necessary for their manufacturing and
assembly30. In turn, firms that supply to the Tier 0.5s also need to take
on design responsibilities for their submodules or components to
become preferred partners. With a few exceptions, firms in India and
Pakistan are not demonstrating sufficient and quick uptake of design
capabilities, which is likely to impair their competitiveness and ability
to link to GVCs.
While the importance of design capability is rising, investment in
R&D and commercialization of new products in India remain below
the global average, and local suppliers rely primarily on build-to-print
models. In most cases, specifications are provided by the customer and
the execution is done by the local firm. Design abilities are closely linked
to a firms R&D capabilities. The average expenditure on R&D in Indian
auto firms ranges between 0 percent and 2 percent of sales, which
is much lower than the global average of 4.7 percent31 (see Figure 5
and Figure 6). Interestingly, although R&D expenditures by firms in
China are higher than in India, the difference is insignificant, indicating
that China may also need to ramp up R&D. During field interviews,
firms appreciated the importance of R&D for the sector, but very few
had factored in increases in R&D outlays in their budget for the next
fiscal year or were licensing technology from foreign firms. Many firms
expected more support from the government on R&D. At the same
time, foreign companies such as BMW, Mercedes, Renault-Nissan, Volvo,
GM, and Honda have been exploring using India to set up R&D centers,

30 Veloso and Kumar 2002.


31 Odgers Berndtson Search Intelligence 2014. Some of the expenses
on Indian R&D are made to avail the tax/depreciation benefits of 200
percent, according to an auto supplier interviewed in Noida.
22 INDUSTRIAL PRODUCT REVIEW
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and Tier 3 firms, were checking for defects at the end of line with few
process controls in place. Site visits revealed that production systems
were not set up so that defects could be identified at source and
debugging done in time to contain the domino effect of a mistake.
In Pakistan, the problem is as bad, or even worse. An analysis done
by a global auto expert finds the losses due to a lack of standardized
processes, including quality controls, could reduce profits by up to 5
percent.
Although some leading Indian suppliers are nearing world class
standards, average external rejection rates among suppliers are above
industry benchmarks. External rejection rates are easier to measure
in terms of parts (or defects) per million (ppm) produced. As external
rejection rates tend to be product specific, we draw on the example of
seat makers in India.32 The international best practice standard for seat
makers is between 100 and 500 ppm. In India, two-thirds of suppliers
were able to achieve these rates, and some of the leading ones are
nearing 120 ppm. However at the tail end, one-fifth of suppliers are
experiencing rates as high as 1,000 to 2,000 ppm.33 High levels of
defective parts also affect the end customer. External rejection rates
are extremely high among Tier 2 suppliers who serve after-markets,
where performance and quality requirements are achievable without
huge difficulties. Indias reliance on after-markets grew by 13 percent
per year between 2006 and 2013. As 40 percent of the value added of
a car lies in the Tier 2 and Tier 3 segment, the competitiveness of the
Advertise in IPR auto industry depends on its ability to improve quality, deliveries, and
competitiveness in these segments.34
www.iprmagazine.com/advertise The lack of authority of on-duty line managers to pull the line in
SMEs is partially responsible for high rejection rates. In more than 60
percent of auto firms interviewed, the on-line duty quality manager
cannot stop the line at the first sight of a defect, but must gain permission
Scan the code to Download Media Kit from the SME owner. At the same time, the technical operator did not
appear to possess the skills required to fix first-level line issues. Some
factory managers mentioned that the use of contract labour and lack
of continuity among technical operators made it difficult to develop
the skills of the workforce. This led to longer learning times and greater
reliance on line managers who were already stretched. As most
operators were not multi-skilled, the line manager had few options
for replacements if an operator needed a break or fell sick. All these
problems resulted in higher than usual line downtimes, longer breaks
between changing lines, and lower capacity utilization yet another
issue faced by Tier 2 and Tier 3 firms. However, where the OEMs and
Tier 1s worked closely with their Tier 2 and 3 suppliers, quality levels
were better.35
The share of firms that are very poor performers is larger in India

32 Sutton 2004.
33 Ibid; Bank site visits to Indian auto clusters in December 2014.
34 From field interview notesit is interesting that most of the firms
blame their suppliers for high rejection rates, while they also admit that
better process planning could partly reduce these defects.
35 From field interview noteshigh line downtime can also be caused
by delays in external resources due to lack of reliable transport and
infrastructure.
INDUSTRIAL PRODUCT REVIEW 23
www.iprmagazine.com | April 2017

than in China, according to a comparative study by Sutton (2004).


Pakistan has similar issues. In India and China, the leading Tier 1s and
some Tier 2s are close to world class standards. However, the lack of
quality management is driving very low competitiveness in many
Indian SMEs. In Pakistan, too, there are many very poor performers, and
quality issues are more pronounced than in India due to the low level of
competition in the domestic market. Lack of scale had a critical impact
on the bottom line of OEMs, while lack of standardization in process
and quality control as well as unskilled managers posed significant
challenges for Tier 2 and 3 suppliers. Tier 1s come out in the middle,
and need to be more uniform in achieving both volume and process
standardization.

TO BE CONTINUED IN NEXT ISSUE

Saraf Priyam. 2016. Automotive in South Asia : From Fringe to Global.


World Bank, Washington, DC. World Bank.
https://openknowledge.worldbank.org/handle/10986/25119
License: CC BY 3.0 IGO.

(Reproduced with due permission from the World Bank Group)


24 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

Company Prole Company Prole

Kumbhojkar Plastic Moulders: Falcon Exim:


Quality Engineering Plastic Importer and Supplier of Barcode
Products at your Finger Tips Printers, Scanners and Softwares

K F
umbhojkar Plastic Moulders are the pioneers in alcon Exim Pvt Ltd. is a leading importer
designing and manufacturing specialized and supplier of most prominent brands
engineering plastic products. Founded in 1972, in bar coding and AIDC in India. Falcon
Kumbhojkar Plastic Moulders caters an exhaustive list is a business organization, specialising in
of contented clients across India since past 25 years. many products and markets. Falcon started its
Some of the award-winning products developed journey by exporting food products, garments,
and manufactured by Kumbhojkar Plastic Moulders, engineering products etc. And over the years the
for the first time in India like Cable Carrier Assembly, product range has
Arun Kumbhojkar Flexible Coolant Pipe, Pendant Control Station, Cable Milind Ghodke
Director grown to hundreds of exclusive products. Our
Director
Drag Chain, Plastic Stand Pole and Chain, Barrier vision is to provide our customers best products
Tapes, have been receiving great appreciation widely. The products have and services with cost effective solutions. The groups endeavour
been consistently performing to the entire satisfaction of the end-users for has been to provide customers with value for money. The guiding
the optimum production level. principles of honesty, integrity and hard work have helped build
strong associations, which have resulted in the prosperity of every
Kumbhojkar Plastic Moulders' products include associate as well as in the exponential growth of the group.
Plastic and Bakelite Knobs and Handles in standard sizes and shapes to Falcon deals exclusively in barcode printers, barcode scanners
suit most of the common applications. and labelling software. It has partnered with leading global brands
Oil Windows, Oil Sight Glasses in plastic in various types and shapes. in respective categories for these products. The brands include SATO,
Various types of Strainer Button Assemblies for Water Softening Plants. TSC, Videojet, Honeywell, Nice Label and HID.
Aids to Conveyor Systems and Assemblies in plastic.
And a range of special purpose moulded components. Falcon Exims solutions include
The company is a registered Partnership Firm established in1972. The Warehouse management

company is headed by Shri. Arun Kumbhojkar, a veteran having over 47 From inventory control, shipping and receiving, to order fulfilment,
years of experience in Plastic Injection Moulding. The company has a state- awarehouse management system (WMS)is vital to improving the
of-the-art Tool Room and Injection Moulding unit in Pune. It also caters efficiency of a companys warehouse operations.
to clients for exclusive product development. The company has received Retail / stores solutions

design registration from Patents Office in India for models of Cable Drag Revamping existing stores or opening new locations, replenishing
Chain and Cable Carrier Assembly. merchandise etc. are all critical in creating a differentiated shopping
experience. Retailers know this and weave technology throughout
Awards and recognition their store operations.
Kumbhojkar Plastic Moulders has received several awards for Asset tracking solutions
designing, developing and manufacturing import substitute products. Collecting and maintaining accurate records of your fixed assets
Some of these awards include: can be a time consuming and expensive task. The right integrated
Late Ramabai Joshi Award for Cable Carrier Assembly from MCCIA (1986) solution will put your companys valuable equipment firmly under
Rotary Industrial Appreciation Award (1988) your control. The goal of any robust system is to maximize your asset
G. S. Parkhe Industrial Merit Prize for Plastic Flexible Coolant Pipe (1990) control efficiency and minimize your equipment loss.
PLASTICON Awards for Cable Carrier Assembly under Innovative Product ID card printing
Category (2000) Improved personnel tracking, access control and secure id badges.
PLASTVISION ARABIA Award for Double Wheel Cable Carrier under Choose from a broad range of single or dual sided colour card
Product Design Category (2002) printers.

Kumbhojkar Plastic Moulders Falcon Exim Pvt. Ltd.


129, Narayan Peth, Near Mati Ganpati, Sitaphal Baug Colony, Pune 411030 492-A, Narayan Peth, Nagarkar Wada, Near Patrya Maruti, Pune - 411030
Tel: 020 2445 0055 / 60 | Email: mktg@kumbhojkarplastics.com | Web: www.kumbhojkarplastics.com Tel: 020 - 2448 9135 | Email: milind@falconexim.com | Web: www.falconexim.com
INDUSTRIAL PRODUCT REVIEW 25
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26 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

Interview
Dr. Jitendra Joshi, Chairman, Abhi Group of Companies

We let Manufacturers Focus on their Core


Competencies than Worrying about Logistics
Established a decade ago, Pune-based Abhi Group of Companies has today emerged
as the top Indian brand in supply chain and logistics management. The ISO 9001:
2015 certified company renders services ranging from all India transportation,
warehousing, international freight forwarding, 3rd and 4th party logistics and logistics
consultancy. In special conversation with Industrial Product Review (IPR), Dr. Jitendra
Joshi, Chairman of Abhi Group talks about his accomplishments, market scenario and
challenges as well as growth opportunities in the ever-expanding field of logistics.

NIRANJAN MEDHEKAR Q. How did you come to a decision of


starting your own logistics company?
Assistant Editor, IPR
info@medianext.in A. Starting my own business was a
long-cherished dream and I had gained
Q. The Indian logistics sector is experience of running small ventures
fragmented, underdeveloped and while pursuing engineering. However, at
still at the nascent stage. What the same time, I was well aware of gaining
really motivated you to enter in this experience from market leaders. Before I
relatively challenging field? joined Tata Motors Ltd., I got an opportunity
to work with Ford Motor Company. Ford had
A. Although logistics sector in India is still launched its vehicles in India and I became
at the developing stage, the industry first In my view, an ideal the Spare Parts Division Head. I learned the
acknowledged the importance of logistics logistics and supply importance of quality and customer service
somewhere around 1990s. I can still recall chain solution must at Ford. At Tata Motors, I got a deep insight
how the store department used to be the allow a manufacturer of handling huge quantity. In 2001, Philips
most neglected department in any company focus on its core offered me a position of Country Head,
till 1990. Things started changing post 91.
competencies like Logistics with a gigantic responsibility of
Logistics gained significance at the onset shifting companys various plants based
of globalization in India. Blocking most of
manufacturing and in Europe to India. All these plants were
the funds in inventory and raw material was sales rather than into passive components manufacturing,
taking a toll on the overall growth of the worrying about a business that was not doing well in
industry. Incidentally, I started my career inventory and Europe. In 2001, we started shifting the
around the same time as Maintenance logistics. I take pride first plant from Netherlands to India. From
Engineer at Greaves Cotton Ltd. in Pune. While in serving over 200 SOPs to technology, shifting an entire plant
the two years stint with Greaves Cotton Ltd. companies with an altogether to a different country was a
gave me crucial lessons of man management
end-to-end logistics big learning experience. I served my last
skills, it was during my stint with Tata Motors tenure in Atlas Copco, where I executed
Ltd. (erstwhile Telco) as the Head of the
solution. several challenging tasks in supply chain
Spare Part Division, I sensed enormous management notwithstanding pressure
opportunities in the field of logistics. tactics of the workers union. At that
INDUSTRIAL PRODUCT REVIEW 27
www.iprmagazine.com | April 2017

PHOTOS: ABHI GROUP OF COMPANIES

Dr. Jitendra Joshi, Chairman, Abhi Group of Companies


28 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

One of the warehouses of Abhi Impact Logistics Solutions that stocks and supply newsprint to Times Group's press located in Navi Mumbai

moment, I realized that I am capable enough chain. We appealed companies that they Q. What exactly is Single Window
to take risks and now is the time to be better focus on their core competencies like System for Logistics?
fearless and start my own business. manufacturing and sales and let us handle
the entire supply chain. Instead of just paying A. Single Window System for Logistics is
Q. How is the journey so far? heed to local transportation, we started simply an end-to-end supply chain solution.
providing all India transportation facilities For all our clients (Like POSCO, Whirlpool,
A. It has been a wonderful decade! I through trailers and full truck movements Godrej, Finolex, Bericap etc.), we work on
incorporated Abhi Impact Logistics Solutions and moved onto warehousing. We currently several fronts freight forwarding, customs
in Pune in 2007 and was well aware of the have 20 lakh sq. ft. storage capacity in our clearance, system related entries, production
shortcomings of the traditional logistic warehouses located across the country. Our line support etc. Trust plays an essential
handlers. At the same time, I was also aware clientele includes over 200 industry giants part in getting the responsibility of handling
of the changing needs of the industry. and MNCs. Since the beginning, we never entire supply chain function, where a lot
Most of the logistic handlers were actually restricted ourselves to serving any particular is at risk. We do maintain healthy relations
experienced transporters, unaware about industrial sector. Our Export-Import division with various worker unions and mathadi
the functioning of supply chain logistics. handles all global functions viz. import, (head-loaders) workers. We have formed our
With over a decade of industry experience, export, freight forwarding, and customs own worker union wing named Maharashtra
I offered the supply chain management clearance. We have extensive business Majdur Sangh, which has around 16,000
solution instead of just transportation tie-ups with logistics companies across the workers as members. Our only motive
service and it was well received. We started globe. Banking on all our strengths, we were behind creating these support systems is
providing in-plant logistics support and the first to introduced the Single Window that the industry should run without any
ensured that we look after the entire supply System for Logistics in India. hurdles and its performance shouldnt
INDUSTRIAL PRODUCT REVIEW 29
www.iprmagazine.com | April 2017

Abhi Group: End-to-End Supply Chain


and Logistics Management Company
Abhi Impact Logistics Solutions Pvt. Ltd. is
structured to provide logistics and supply chain
solutions to the growing global industry. Its
comprehensive solutions comprise of services like
logistics consultancy, warehousing, transportation,
packaging, international freight forwarding, projects
and reverse logistics.

Services:
Third Party Logistics (3PL) and 4PL
Inbound and outbound logistics
In-plant logistics
Abhi Impact Logistics Solutions handles one of the warehouses of American Vendor coordination
automobile giant Meritor, located in Maval Taluka in Pune Reverse logistics
Integrate and manage logistics functions

get hampered due to external and from Chakan to Shirval, we Transportation


circumstances. have industries ranging from All India transportation connecting all states and
automotive, electronics, FMCG, major cities
Q. You are also into logistic paint, paper, steel and much Handling full truck load
consulting. Tell our readers more. If we particularly focus on Containerize transportation 20 ft. and 40 ft.
Pune Metropolitan Region, the Bulk transportation
more about that.
proposed Ring Road will be a
Warehousing
A. Along with logistics service, game-changer for logistics, as
Bonded and non-bonded warehousing
we provide trading consultancy it will resolve the long-pending Cold and refrigerated warehousing
and support through Ash Impact issue of basic infrastructure. I am Yard management
Logistics. Many small traders who quite positive that the proposed Carrying and forwarding
need to import raw material from High Capacity Mass Transit Route Industrial projects and plant shifting
overseas dont even know how (HCMTR) developed by PMRDA
to apply for Import-Export Code will end major transport issues. International Freight Forwarding
(IEC). In such cases, we provide The proposed Chhatrapati Global connectivity
them entire trading and logistic Sambhajiraje International Airport Air freight import and export
at Purandar near Pune will further Sea freight import and export
support. With two companies
Multi-model transport
in the logistics field, Abhi Group prove to be a major boost to cargo
Customs clearance
has presence in all major states movements and end citys current
and has 2,500 employees across dependency on Mumbai for cargo Logistics consultancy
India. Our daily truck and trailer handling. Supply and demand chain strategy development
movement is over 5,000. Logistics and re-engineering
Q. What is your Site and facility location study and planning
Q. How do you estimate Punes recommendation for overall Process mapping and streaming
growth potential? improvement of the logistics Distribution network planning
sector?
A. Pune has phenomenal growth Expertise in:
potential. So is the case of Pimpri- A. I have recently completed a Abhi Group has expertise in engineering,
Chinchwad and Navi Mumbai. doctorate on 'Indian Logistics electronics, textile, pharmaceutical, information
These three industrial areas are and Transport Movements' under technology, automotive, perishable, constructions,
referred to as premium industrial which I analyzed various crucial telecommunications, FMCG, retail and power
zones and there is hardly any other factors. I am soon approaching the industries, to name a few. Some of its clients include:
industrial belt in the country that state and the central government Halyard Meritor Bharat Forge Finolex Godrej
Kimberly Clark Whirlpool Bericap POSCO
has over 20,000 active industries. with my recommendations.
Times Of India
From Ranjangaon to Belapur Improving road conditions,
30 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

structural audits of old bridges, specific steps


to curb road accidents, upgradation of a
communication network, round-the-clock
assured police assistance are some of my major
recommendations. Way-side amenities like fuel
stations, parking lots, restrooms, restaurants,
low-cost rest houses for short stays, ATMs,
garages for cargo truck drivers on all national
highways need to be looked into on priority
basis. If such clusters come up on highways
after every 100 km then it will definitely bring
down several transportation issues including a
high ratio of road accidents.

Q. Will GST change the way India does


business?

A. Yes, it will! Uniform taxation system is the


need of the hour. It will be a major boost not
only for logistics, but for the entire industrial Dr. Jitendra Joshi felicitating senior NCP Leader Shri. Ajit Pawar at the inauguration of Abhi
sector. It will uproot complex taxation system Impact Logistics Solutions in 2007
and bring much-needed transparency.

Q. Abhi Group has a presence in diverse


domains ranging from media to
healthcare. Would you like to share
something about your other ventures?

A. In 2013, we decided to diversify and ventured


into event management with Impressions
Event. It was followed by a realty venture Abhi
Realty and Infrastructure, a medical tourism
venture Multichoice Health Care a media
venture Janawarta Channel. We are also active in
the education field. Since last three years, Abhi Dr. Jitendra Joshi with Dr. Swati Mujumdar, Vice-President, Symbiosis Foundation. Since 2014,
Group along with Symbiosis Institute of Skill Symbiosis Institute of Skill Development and Abhi Group are jointly running a short term course
Development is running a short term course in supply chain logistics
in Supply Chain Logistics. We also launched
earn and learn scheme under my chairmanship
for the students who take admission for this
course. The minimum academic qualification
for securing admission to this course is class
12. There is an acute manpower shortage in
logistics field and this new course is generating Indian Institue of Materials
good employment opportunities to youth and Management (Pune branch)
also catering the need of skilled manpower for conferred 'Logistics Company of The
logistic companies. Year' award to Abhi Impact Logistics
Solutions on 25th April 2015

Abhi Impact Logistics Solutions Pvt. Ltd.


Office No. 16, 3rd Floor, Primerose - The Mall, Baner Road, Baner, Pune - 411045
Tel: 020 - 6607 3050 | Mob: 93726 53534 / 89757 54403 | Email: sales@impact-logistics.in | Web: www.impact-logistics.in
INDUSTRIAL PRODUCT REVIEW 31
www.iprmagazine.com | April 2017
32 INDUSTRIAL PRODUCT REVIEW
Product Review www.iprmagazine.com | April 2017

PHOTOS: WWW.IN.SCHUNK.COM
Schunk Vero-S SPD clamping pins compensate fluctuations of inside micrometres during direct clamping caused by heat distortion or residual stress

Schunk Introduces Clamping Pins


for Efficient Direct Clamping
Advantages of direct clamping
U
ntil today it has been difficult to directly clamp on a
quick-change pallet system large workpieces due to For direct workpiece clamping with the Schunk Vero-S,
thermal dynamics, inherent stress or other difficulties users do not need conventional clamping equipment
in accurately mounting clamping pins for quick-change such as clamping claws or lathe chucks with several chuck
pallets. Schunk, the leader for clamping technology and jaws. Instead, mold plates, freeform plates and other
gripping systems provides the right solution. The Schunk workpieces are initially surface milled at the base plate to
Vero-S SPD clamping pins compensate in a range of +/- 1 the same level with defined tapped holes and are then
mm and pave the way to efficient direct clamping. In order equipped with clamping pins of the quick-change pallet
to use this effect, the Schunk VERO-S quick-change pallet system. The parts can be exchanged in the machine with
modules are briefly open for finish machining, and therefore quick-change pallet modules within a few seconds, and
a tension-free state is achieved. When the modules are are immediately precisely clamped. In comparison to the
relocked, the flexibility of the Vero-S SPD clamping pins conventional clamping solutions, there are no interfering
avoids that the workpiece will deform again and high contours around the edges from chuck jaws or clamps in
precision results are achieved. The flexible clamping pins case of a direct clamping solution, so 5-sided machining
are available in two versions: the Schunk Vero-S SPD-B, with maximum accessibility is ensured. Plus, unproductive
which allows the compensation of +/- 1 mm in downtimes just like time-consuming set-up,
down
one direction, and the Schunk Vero-S SPD-C, rretooling, aligning or determining the zero
which compensates +/- 1 mm in diameter. point can be eliminated from the machine
The flexible clamping pins can be used with consistently. Direct clamping is similarly
every Schunk Vero-S NSE plus module. As all effective, if workpieces are repeatedly
the Schunk VERO-S components, the Schunk modified or have to be machined under
m
SPD clamping pins are also manufactured from deadline. Due to the existing tapped holes the
d
stainless steel. They are connected with the parts can be exchanged on the machine very
p
workpiece with standard (M10) screws. The precisely and within a very short time.
p
holding force amounts to 35 kN.

Schunk Intec (India) Pvt. Ltd.


80 B, Yeswanthpur Industrial Suburbs, Bengaluru - 560022
Tel.: 080 - 4053 8999 | Email: info@in.schunk.com | Web: www.in.schunk.com
INDUSTRIAL PRODUCT REVIEW 33
www.iprmagazine.com | April 2017
34 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

Company Prole

Asia Automation:
Leader in Industrial and Process Automation
A
sia Automation,
manufacturer and
exporter of PLCs and
CNCs, stands out distinctly
in the field of Industrial
and Process Automation
in India. Unlike other
players in the field, who are
Shirish Mujumdar Ravindra Gokhale collaborating or trading the
Director Director international brands and
foreign controllers in India.
Asia Automation offers total indigenous solution. The company was
started by IIT engineers Shirish Mujumdar and Ravindra Gokhale
in 1991, with technology as main capital. After working with Telco
for about 10 years, they quit the handsome job and instead of
trading or supporting multinational brands, they opted the hard have also made their way globally in Indonesia, Malaysia, Taiwan,
and patriotic way out - i.e. to design, develop and manufacture high Saudi Arabia and Philippines.
precision and technically complex controllers indigenously against
competition from multinationals. Product range
Today, Asia Automation manufactures and exports wide IoT Application for PLANT VIEW OEE Analyser + (M2M/IoT) -
range of import substitute products like PLCs, CNCs, position Real Time Shop
controllers and data loggers. There are no Indian competitors in Floor Data to ERP
this high technology automation area and from day one, the main' IoT Device (Stand Alone) for Remote Data Logging
competition was from multinational brands. Keeping this in mind, PLCs with remote I/Os
Asia Automation had to deliver the best products with reliability, CNC for SPMs Multi-axis Position Controller
quality, aesthetics, features, latest technology and of course at very Textile Jacquard Controllers
competitive price. Since its inception in 1991, Asia Automation has Intelligent Compaction System
come a long way and has established itself as a reputed automation Batching Plant Controllers
solutions provider and not just controller manufacturer. The Battery Management Formation Controller and Data-Loggers
company is growing constantly, with a new product every year Die Casting Injection Monitoring
in diverse applications. The absorption of appropriate technology Press Automation
down to the organizations lowest rung is the main thrust and Electronic Cam Switch
hence, Asia Automation boasts of its employees and engineers as
some of the best talents in the high technology field in India. Awards and accolades
The company has a customer support network stretching across The quality and indigenous efforts of the company have been
India, managed by competitive engineers. The companys customer recognised in India and appreciated by prestigious awards like G.
list includes reputed multinationals in India like Cummins India, Tata S. Parkhe award for the Innovative and Import Substitute Product
Motors, Case New Holland, Bajaj, Godrej, JCB, Volvo, Wirtgen India, in the field of Industrial Automation and MCCIA - Tata Honeywell
HMT, Bharat Forge, Anurang Engineering, Thermax, Ador Powertron, Award for Good Quality Systems and Practices in the Establishment.
Mico, SKF etc. With their cutting-edge technology, the products

Asia Automation Pvt. Ltd.


22, Pragati Complex, Kothrud Industrial Area, Pune 411029
Tel: 020 - 2543 0424 / 2542 0543 | Email: sales@asiaautomation.com | Web: www.asiaautomation.com
INDUSTRIAL PRODUCT REVIEW 35
www.iprmagazine.com | April 2017

Company Prole

Tuffplast: Pioneer in Moulded Products


T
uffplast Pune Pvt. Ltd. is a pioneer in moulded products in pumps is proven in milk and milk products, varnish, ink and certain organic
engineering plastics. The company was established in 1986 under bio products. There is always scope for improvement is Tuffplasts motto
the dynamic leadership of Shri. Y. S. Karve, an eminent plastic expert. and it is aiming at achieving its goals by reaching out and serving all
Tuffplast is committed to quality and innovative products and have possible streams of industry / society.
earned appreciation from across the industry and accolades / awards from
reputed organizations. In its 31st year of existence, Tuffplast is grown into Awards and accolades:
a full-fledged company, having a well-equipped tool room and injection Overall Development in Plastic Products award from Association for the
moulding machines, assembly shop, testing facilities and has utmost Promotion of Plastics in 1993.
concern to fulfill the need of its clients. Appreciation Award for Planetary Gear Box from Indian Society of Plastics
in 1995.
Key products: Entrepreneur Award from E. L. F. filament foundation 1995.
At present, Tuffplast is the only manufacturer of Timing Belt Pulleys and Milind Sathe Memory Award for the Best Innovative Plastic Product from
Planetary Gear Box moulded in plastic in India. Tuffplast is also known for Indian Society of Plastics in 1997.
manufacturing gears, couplings, rocks and specialized parts from plastics. Udyogshree Award from Vyapar Udyog Abhinav Vyaspeeth in 1998.
After thorough research of 3 years, Tuffplast developed a Gear Pump
for specialized use in food and chemical products. Utility of such gear

Tuffplast Pune Pvt. Ltd.


Survey No. 39/1A, Manik Baug, Sinhgad Road, Pune 411051
Tel: 020-2435 2718 / 2435 6234 | Email: tuffplastpune@gmail.com / tuffplastpune14@yahoo.com | Web:www.tuffplast.com
36 INDUSTRIAL PRODUCT REVIEW
Product Preview www.iprmagazine.com | April 2017

Alfa Laval
ew
Launches New
Rotary Tank
chinee
Cleaning Machine

A
lfa Laval announced its TJ40G
rotary tank cleaning machine
achine
that employs a high-impact
mpact jet
stream to effectively clean tough
ugh tank
residues and minimize the riskk of product
contamination.
The four-nozzle rotary jet head cleans
tanks 60% faster than static spray
pray ball
technology, and uses less water ter and
cleaning agents.
The TJ40G rotary tank cleaning
aning
machine can handle tough tank nk residues
and solids up to 1mm in the cleaning
fluid in tank sizes 50-1000 m3. This feature
is critical when both the size and the
amount of particles may be re-circulated
e-circulated
in cleaning media before completing
mpleting the
cleaning cycle.
Its hygienic self-cleaning design
ensures that the flow of the cleaning
leaning
fluid reaches the exterior surfaces
aces
of the rotary jet head, as well as the
critical interior components such
uch as all
bushings, bearings and inner surfaces,
further minimizing the risk of product
contamination.
The self-cleaning process in
this rotary tank cleaning machine
hine is
supported by features like directional
ectional
flow from small jets in the hub b that
cleans the exterior of the machine.
chine. A low-
pressure loss over the machine ne provides
increased cleaning efficiency compared
with traditional tank cleaners runningi att
the same inlet pressure.

Alfa Laval (India) Ltd.


Office No. 301, Global Port Building, Survey No. 45/1-10, Mumbai - Bengaluru Highway, Baner, Pune - 411045
Tel: 020 - 6734 1100/01 | Email: india.info@alfalaval.com | Web: www.alfalaval.in/en/

In Association with World Industrial Reporter | www.worldindustrialreporter.com


INDUSTRIAL PRODUCT REVIEW 37
www.iprmagazine.com | April 2017

Trumpf Launches GE Digital Announces

Product Preview
3D Metal Printer Unique Manufacturing
TruPrint 1000 Software - WIP Manager

G
E Digital announced its WIP Manager manufacturing
software module that shows the progress of work orders
throughout the manufacturing plant using the industrial

T
rumpf introduced its TruPrint 1000 3D metal internet.
printer that uses a laser and metallic powder This manufacturing software is ideal for companies in the
to build components directly from a CAD heavy industrial segment where cycle times are longer, assembly
program. This LMF (Laser Metal Fusion) 3D metal space on the plant floor is widely dispersed, and raw materials
printer creates components layer by layer with more expensive. With increased material visibility, managers
grain sizes as small as 20 micron. can ensure the right material is available to the manufacturing
It is ideal for creating parts that are process at the right time and in the right place.
complex in their geometry, such as those with WIP Manager visualizes dynamic queue times for work
internal channels and hollow spaces, and for centers, highlights slow or stuck orders, and provides an ETA
economically manufacturing individual parts or of orders based on progress. WIP Manager tracks production
short production runs. The printer can also be and service processes through work orders, which are created
used for adding volume and structures/ features in the enterprise resource planning (ERP) system, and an
to existing parts. The TruPrint 1000 3D metal operational route through the shop floor, which is imported
printer can generate parts that are a maximum from the customers manufacturing execution system (MES).
of 100mm in diameter and 100mm in height. The Once the work order is created and the required materials are
user interface with touch screen control guides available, using WIP Manager, work center operators can begin
the operator through the individual phases of the the operations listed on the work order to build or repair the
process. All the printer components are integrated specified parts.
into the compact housing. The entire 3D Manufacturers can use this manufacturing software module
printing process takes place inside the enclosure, to track part production or repair from start to finish using data
blanketed by protective gas, and at an oxygen from work orders. They can also view analytics charts such as
content of 0.1 percent ensuring part quality. average queue, which shows how many parts are queued at
each work center. Scorecard charts show the view of a line of
balance, where the user can select a part and display how work
orders containing the part are balanced for In-Progress, Hold, and
Trumpf (India) Pvt. Ltd. Rework for each operation. All of this information is available on
Raisoni Industrial Park, S. No. 276, Hissa No. 1, Hinjewadi Phase 2, computers and mobile devices.
Near Virgo, Pune - 411057 https://www.ge.com/digital/
Tel: 020 - 6675 9800 | Web: www.in.trumpf.com

In Association with World Industrial Reporter | www.worldindustrialreporter.com


38 INDUSTRIAL PRODUCT REVIEW
Product Preview www.iprmagazine.com | April 2017

Kennametal ABB Robotics


Introduces Spindle Launches Compact
Connection KM4XTM Foundryy Robot
for Titanium
chining
Machining

A
BB Robotics announced its IRB 1200
Foundry Plus 2 foundry robot designed

K
ennametal introducess its KM4X
KM4X machine for material handling and machine
tool spindle connection feat
featuring tending in die casting applications. This compact
high clamping force and controlled foundry robot can withstand the harsh foundry
interference levels that deliver extremely high environment and meets IP66/67 protection
stiffness, and restrained bending moment for requirements from base to wrist.
improved performance in titanium machining. All electrical compartments are sealed against
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Research Article

Another Look at Estimators for


Intermittent Demand
PHOTO/S USED IN THIS ARTICLE ARE FOR REPRESENTATION PURPOSE ONLY
PHOTO: ADOBE STOCK

This article focus on forecasting for intermittent demand data. The authors propose
a new aggregation framework for intermittent demand forecasting, that performs
aggregation over the demand volumes, in contrast to the standard framework that
employs temporal (over time) aggregation.

FOTIOS NIKOLAOS KONSTANTINOS


PETROPOULOS KOURENTZES NIKOLOPOULOS
Logistics and Operations Management Department of Management Science, Bangor Business School,
Section, Cardiff Business School, Lancaster University Management Bangor University, UK
Cardiff University, UK School, Lancaster University, UK k.nikolopoulos@bangor.ac.uk
f.petropoulos@bath.ac.uk n.kourentzes@lancaster.ac.uk
INDUSTRIAL PRODUCT REVIEW 43
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Abstract is not considered at the very last stage of this framework, then
To achieve the desired results, the authors constructed a ADIDA is addressing the question how many SKUs will be sold over
transformed time series and the inverse intermittent demand a pre-specified lead time?.
series. The new algorithm is expected to work best on erratic However, instead of focusing on minimising the variance of the
and lumpy demand, as a result of the variance reduction of the inter demand intervals and modelling the variance of the demand,
nonzero demands. The improvement in forecasting performance is one could fix the demand buckets, thus minimising the variance
empirically demonstrated through an extensive evaluation in more of the demand, and forecast the respective time varying number
than 8000 time series of two well-researched spare parts data sets of periods that this fixed demand will occur. We define such an
from the automotive and defence sectors. Furthermore, a simulation alternative view of the data as Inverse ADIDA. This approach
is performed so as to provide a stock-control evaluation. The performs non-overlapping temporal aggregation creating equally
proposed framework could fifind popularity among practitioners sized demand buckets, which makes sense from a managerial
given its suitability when dealing with clump sizes. As such it could viewpoint, as many SKUs are distributed in pallets with pre-fixed
be used in conjunction with existing popular forecasting methods quantities. In other words, Inverse ADIDA focuses on answering the
for intermittent demand as an exception handling mechanism question: when should I re-order a new pallet?.
when certain types of demand are observed. We empirically examine the new method's performance against
standard intermittent demand estimators and the original ADIDA
1. Introduction framework. Evaluation is performed both in terms of error metrics
Forecasting for lumpy and erratic demand is challenging. and inventory performance, using real and simulated data. The
Intermittent demand is characterised by variable demand sizes remaining of this paper is organised as follows. Section 2 provides
coupled with irregular demand arrivals, with many observations a quick overview of the main methods proposed for forecasting
having zero demand. Such demand patterns are very common intermittent demand data. Section 3 gives an alternative view to
in many industrial settings. Given that inventory management intermittent demand data and introduces the concept of inverse
and stock control builds on demand forecasting, it is obvious that series and inverse ADIDA. Section 4 outlines the experimental set-up
accurately forecasting irregular demands is strongly linked with and Section 5 discusses the evaluation of the results. Lastly, Section
optimal inventory levels. 6 provides concluding remarks and paths for future research.
A first systematic approach to deal with intermittent demand
data was introduced by Croston (1972). Croston proposed the 2. Background research
decomposition of such data into two separate series, corresponding
to the non-zero demand sizes and the inter-demand intervals. Each 2.1. Parametric methods
series is extrapolated separately and the ratio of the two forecasts Simple Exponential Smoothing (SES) is frequently being used
corresponds to Croston's method forecasts. Croston's method as the tool to forecast intermittent demand data. The method is
deals independently with each type of variance observed in the applied directly on the original data. The forecast for a point in the
data: the variance of the non-zero demands and that of the inter- future is calculated as:
demand intervals. Various alternatives to Croston's method have
been proposed in the literature, most notably the Syntetos Boylan y^t = y^t 1 yt 1 y^t 1 ). (1)
approximation (Syntetos and Boylan, 2005) and the Teunter
SyntetosBabai method (Teunter et al., 2011). However, all of them where is the smoothing parameter for the level.
build on the same concept, separating the non-zero demands
from the intervals or the probability to have a non-zero demand. However, Croston (1972) pointed out that this method suffers
Croston's method and its variants attempt to provide an estimate from a decision-point bias, producing very large forecasting errors.
of the demand rate, thus answering the question what will the Thus, he proposed a decomposition approach so that the updates
mean demand be for every future period?. of the estimate are performed only after a non-zero demand is
An alternative approach to deal with the intermittence of observed. At the same time, the first differences of the time periods
demand comes from Nikolopoulos et al. (2011). They proposed the that a non-zero demand has occurred, which measures the inter-
AggregateDisaggregate Intermittent Demand Approach (ADIDA), demand intervals, are estimated separately. The two estimates
which uses equally sized time buckets to perform non-overlapping are divided to produce the final forecast. Croston's method is the
temporal aggregation. ADIDA reduces the variance observed in standard method to be used in the industry nowadays, being
the intervals. Thus, given an appropriate level of aggregation that implemented in many ERP systems and dedicated forecasting
removes the intermittence of the data, ADIDA focuses only on software.
forecasting the (aggregated) non-zero demands. One could argue Another way to look at Croston's decomposition is that of a
that the improvements in performance offered by the ADIDA non-overlapping temporal aggregation, using time buckets the
framework originate from the reduction (or elimination) of the length of which varies over time, so that: (i) exactly one non-zero
variance observed in the intervals. If a disaggregation mechanism demand is included in each time bucket; (ii) the non-zero demand
44 INDUSTRIAL PRODUCT REVIEW
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Fig. 1. Example of an intermittent demand series and the respective Croston's decomposition.

occurs at the end of each bucket; and (iii) intermittence is removed. but a demand rate (Kourentzes, 2013; Petropoulos and Kourentzes,
However, as the length of the time buckets is time-varying, one has 2015), which if accumulated should be the estimate of the non-
to forecast both non-zero demands and inter-demand intervals. zero demand, whenever this occurs.
Fig. 1 presents an illustrative example of Croston's Syntetos and Boylan (2001) showed that Croston's method is
decomposition. The x-axis of the main graph represents the time biased. The bias is linked to the value of the smoothing parameter
period, which is equivalent to the cumulative value of the inter- for the inter-demand intervals. Thus, Syntetos and Boylan (2005)
demand intervals. The y-axis provides the size of the demand suggested an unbiased estimator (SyntetosBoylan Approximation
at each period. The different colours on the original series or SBA) for intermittent demand, by introducing a debiasing factor
represent the time-varying buckets of the non-overlapping that is directly multiplied to the output of Croston's method:
temporal aggregation. Note that sometimes the first value of the
inter-demand intervals is not taken into account when forecasting, p z^t
y^t 1 .
as there is uncertainty with regard to the timing of the previous 2 p^t (5)
non-zero demand. Another interesting method for intermittent demand was
Using SES, each of the two series, the non-zero demand and the introduced by Teunter et al. (2011) that has its base back to the
inter-demand intervals, is estimated individually: original Croston's paper. They suggested that, instead of dividing
with the estimate of the inter-demand interval, the forecast of
z^t = z^t 1 z zt 1 z^t 1 ), (2) the non-zero demand should be multiplied by the probability to
have a non-zero demand. They proposed that, in contrast to the
p^t = p^t 1 p pt 1 p^t 1 ). (3) estimates of the demands, the update of the probability estimate
to have a non-zero demand should be performed at every period.
where z and p are the smoothing parameter for the non- As a result, the TSB method is useful in the cases where inventory
zero demands and the intervals respectively. The final output of obsolescence should be linked to forecasting.
Croston's method is simply the division of these estimates: With regard to the values for the methods' smoothing
parameters, the majority of the literature suggest and make use
z^ of fixed parameters in the range of 0.050.3 (for example see
y^t = t .
p^
t (4) Croston, 1972; Syntetos and Boylan, 2005; Teunter and Duncan,
The combined output is not an estimate of the actual demand, 2009). However, Petropoulos et al. (2013) provided some evidence
INDUSTRIAL PRODUCT REVIEW 45
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that optimised smoothing parameters may result to improvement aggregated series, the variance of the inter-demand intervals is
in terms of bias. Kourentzes (2014) revisited the issue of optimal lower compared to the original series, becoming zero for series
smoothing parameters and initial values proposing two new cost where intermittence is completely removed. As a result, one can
functions, namely the Mean Absolute Rate and the Mean Squared focus solely on estimating the variance of the demands. Despite
Rate, which demonstrated substantial gains over pre-selected the added complexity due to demand aggregation (and possibly
fixed parameters. When using optimal smoothing parameters the forecast disaggregation), we argue that non-overlapping temporal
performance of the different forecasting methods (Croston's, SBA, aggregation simplifies the problem of forecasting for intermittent
TSB) was found to be very similar. demand by tackling the problem of accurately estimating the
With regard to switching from one method to another, Syntetos variance of the inter-demand intervals.
et al. (2005), later refined by Kostenko and Hyndman (2006), It is worth mentioning that the PK classification becomes
suggested that the mean inter-demand interval (p) and the particularly relevant to the case of temporally aggregated
squared coefficient of variation of the non-zero demands intermittent demand series, as intermittence may be removed in
(v) should be used in order to select when to choose between some aggregation levels.
Croston's method and SBA. Petropoulos and Kourentzes (2015) Assuming an aggregation level equal to 3 periods, Fig. 2
revised this classification scheme to include the cases where presents the aggregated view of the data presented in Fig. 1, along
intermittence is not present, where they suggest the use of SES. with the respective sub-series of the non-zero demands and the
This new classification scheme will be hereafter referred to as PK. inter-demand intervals as derived by Croston's decomposition.

2.2. Temporal aggregation 3. Another view at intermittent demand


A promising approach to deal with the intermittence in
demand of slow moving items is the non-overlapping temporal 3.1. Inverting the series
aggregation. The frequency transformation of the original series to Considering the two sub-series that have been derived from
lower ones will reduce or even remove the relative number of zero Croston's decomposition approach, the non-zero demands and
demands per period. the inter-demand intervals, one may recreate the original series
Willemain et al. (1994) were the first to empirically examine the by following the reverse procedure. In other words, the original
impact of temporal aggregation for intermittent demand. Limited to intermittent demand series and the two sub-series contain the
only a few time series, they showed that improvements in forecast same information. The values of the cumulative inter-demand
accuracy can be reached by converting daily data to weekly ones. intervals series are the points in time where a non-zero demand
Nikolopoulos et al. (2011) confirmed this result by examining a has occurred. The rest of the periods have simply zero demand.
much larger data set and different disaggregation strategies. More This process will lead us back to the original series, which is
specifically, they proposed the Aggregate Disaggregate Intermittent represented as the volume of demand per period in time, or the
Demand Approach (ADIDA), which focuses on transforming the volume of demand per the cumulative inter-demand interval.
data in a single lower (compared to the original data) frequency Instead of considering the cumulative values of the
and disaggregating the respective forecasts to produce forecasts at inter-demand intervals, one could calculate the cumulative values
the original frequency. of the demand. Then, by linking the values of the inter-demand
A potential problem with regard to temporal aggregation intervals with the cumulative demand, one new series may be
is the selection of an optimal aggregation level. This problem defined: the inverse intermittent demand series. This series provides
has been previously examined both empirically, using various the inter- demand intervals per cumulative demand. Each non-
in-sample criteria (Spithourakis et al., 2011), and analytically zero value represents the number of periods since the last non-
(Rostami-Tabar et al., 2013, 2014). More recently, Petropoulos and zero demand, while the distance between two non-zero values
Kourentzes (2015) showed that the combined use of multiple suggests the volume of demand that occurred for the latter of the
aggregation le- vels results in superior forecasting performance, two instances.
thus tackling the problem of selecting a single aggregation level. To illustrate how the inverse of an intermittent demand series
The same insight holds for the case of non-stationary fast moving can be calculated, consider the data presented in Fig. 1. The
series (Kourentzes et al., 2014; Kourentzes and Petropoulos, 2016), decomposition by Croston's method is presented on the bottom
where temporal aggregation is acting as a filter for high frequency panel of that figure. The time periods of non-zero demand
components (seasonality) while enhancing low frequency ones occurrences, the values of these non-zero demands and the
(such as long-term trend). Lastly, Nikolopoulos et al. (2011) suggest respective inter-demand intervals are presented for convenience
that a managerially driven aggregation level that makes sense in a in columns 1, 2 and 3 of Table 1. Column 1 has the cumulative
practical inventory settings would be directly linked with the lead summation of the inter-demand intervals. We also calculate at
time (plus the review period). column 4 the cumulative summation of the non-zero demands.
As mentioned, temporal aggregation reduces or even removes Columns 1 and 2 constitute the original series, where periods
intermittence. Considering Croston's decomposition at the with zero demand have been excluded. In other words, columns 1
46 INDUSTRIAL PRODUCT REVIEW
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Fig. 2. Illustrative example of the non-overlapping temporal aggregation for an intermittent demand series.
The aggregation level (time bucket size) is equal to three periods.

and 2 are represented as the values of x-axis and y-axis respectively Table 1.
in Fig. 1. Columns 3 and 4 constitute values of the inverted series, Croston's decomposition of the intermittent demand series in Fig. 1.
where cumulative demands with zero inter-demand intervals have (1) Period (2) Non-zero (3) Inter-demand (4) Cumulative
been excluded. For example, the cumulative demand of nine (9) demands intervals non-zero demands
corresponds to zero (0) inter-demand interval. An interpretation
1 3 1 3
of this is that cumulative demand of nine (9) has never been
3 1 2 4
recorded at the end of a period in the original time frequency. Fig. 3
6 8 3 12
provides the resulting inverse series. Note that columns 3 and 4 are 10 2 4 14
represented as the values of y-axis and x-axis respectively in Fig. 3. 12 5 2 19
By forecasting the original series, we end up with an estimate of 16 1 4 20
the demand per each period (or the demand rate). The cumulative 17 4 1 24
demand rate will give an estimate of the demand over a period, 21 3 4 27
which may be the lead-time. On the contrary, by extrapolating the
inverse series, we estimate the periods that will pass before a single
unit is demanded. The cumulative forecast of the inverse series calculated by Eq. (4)), the inverse of its forecasts is equal to the
gives the estimate of the periods that will pass before a prefixed forecasts of the original series. However, the application of the
quantity of units is demanded. As a result this alternative view for ADIDA framework on the inverted series will end up with different
intermittent demand time series may be very useful when dealing estimates compared to the application of ADIDA on the original
with clump sizes (Ritchie and Kingsman, 1985; Vereecke and series. While the direct application of ADIDA on the original data
Verstraeten, 1994). creates fixed time buckets with variable aggregated demand, the
non-overlapping temporal aggregation on the inverted series
calculates the aggregated sizes of the inter-demand intervals
3.2. Inverse ADIDA over fixed demand buckets.
An important property of the inverse intermittent demand In essence, by considering the inverse series, we are now
series is that, when focusing to Croston's method estimates (as able to reduce the observed variance in the demand sizes and
INDUSTRIAL PRODUCT REVIEW 47
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focus on the estimation of the inter-demand intervals. We call the Table 2.


application of the ADIDA framework on the inverted series Inverse Descriptive statistics of the of the automotive data set.
ADIDA (iADIDA). Fig. 4 illustrates the iADIDA framework, using an 3000 SKUs Demand Inter-demand Demand per period
aggregation level that corresponds to demand buckets of size 3. size(units) intervals (months) (units/month)
The inverted series and its aggregated counterpart are presented Mean St. dev. Mean St. dev. Mean St. dev.
in the two first panels. Once the aggregation of the demand
Min 1 0 1.04 0.21 0.54 0.5
buckets has been performed, we can consider the inverse of the 25%ile 2.05 1.14 1.1 0.3 1.46 1.32
aggregated inverted series (third panel). Both the aggregated Median 2.89 1.76 1.26 0.52 2.33 1.92
inverted series and its inverse can be decomposed in the non- 75%ile 5 3.36 1.41 0.73 4.17 3.5
zero demand buckets and the inter-demand-buckets aggregated Max 193.75 101.41 2 1.59 129.17 122.75
intervals as depicted in the two bottom bar-graphs of Fig. 4.
With regard to the selection of the aggregation level, in both Table 3.
ADIDA and iADIDA, any value greater than unity will reduce the Descriptive statistics of the of the RAF data set.
variance in the sub-series of the inter-demand intervals and the 5000 SKUs Demand size(units) Inter-demand Demand per period
demand sizes respectively. In the case of ADIDA, a data-driven intervals (months) (units/month)
aggregation level could match the mean inter-demand interval, Mean St. dev. Mean St. dev. Mean St. dev.
so the intermittence will be (almost) removed (Petropoulos and Min 1 0 3.82 0 0.04 0.19
Kourentzes, 2015). A data-driven aggregation level in the case 25%ile 1.56 0.81 7.27 5.43 0.15 0.54
of iADIDA could match the mean demand size per series. Also, Median 3.83 3.06 9 6.93 0.37 1.45
75%ile 11.33 9.31 11.57 8.63 1.15 4.43
and as already mentioned, Nikolopoulos et al. (2011) provide a Max 668 874.42 24 16.46 65.08 275.71
managerially driven selection for the aggregation level in ADIDA
framework, so that this matches the lead-time plus the review
period, as cumulative forecasts over that time horizon are required Four different error measures are used to compare the
for stock control purposes. The managerially driven equivalent in forecasting performance of the different approaches:
iADIDA would be the alignment of the aggregation level with the
clump size in which SKUs are distributed. Scaled Mean Error (sME), which refers to the mean signed
In the rest of this paper we test the performance of the error scaled by the mean demand of each series. This error
proposed iADIDA method and discuss its value from a managerial measure is suitable for measuring the bias of the different
perspective. methods.
Scaled Mean Absolute Error (sMAE), which refers to the mean
4. Experimental design unsigned error scaled by the mean demand of each series.
We consider two real-life data sets that have been used widely This error is appropriate for evaluating the accuracy of the
in previous research for intermittent demand. The first consists of the estimates.
demand histories of 3000 SKUs from the automotive industry over Scaled Mean Squared Error (sMSE), which is the scaled
two years (Syntetos and Boylan, 2005; Syntetos et al., 2005), while the equivalent of Mean Squared Error and is calculated by
second refers to the demand of 5000 SKUs from the Royal Air Force dividing each squared error by the squared average of the
(RAF) over a period of 7 years (Teunter and Duncan, 2009; Syntetos et actual demands.
al., 2009). Demand is recorded in monthly frequency. The descriptive Mean Absolute Scaled Error (MASE), where the mean absolute
statistics for both data sets are provided in Tables 2 and 3 respectively. error is scaled by the in-sample performance of random-walk
We employ a rolling origin evaluation scheme. Holding out the n (Hyndman and Koehler, 2006). Like sMAE, this measure is an
last data points, we produce the one-step-ahead forecast (fore- cast appropriate indicator of the methods' accuracy.
horizon equals to one period). Then, one additional data point is added
into the in-sample and a new forecast is calculated from the next origin. For more details on the selected error measures, the reader is
This procedure is repeated until the produced forecast corresponds to encouraged to refer to Petropoulos and Kourentzes (2015). The
the last available observation. error measures employed are meant to demonstrate the relative
The n is set equal to 12 periods for the RAF data set. In other performance of the proposed iADIDA method in terms of three
words, the first origin of the rolling evaluation is the 72nd period. different dimensions: bias (sME), accuracy (sMAE and MASE) and
Previous research has considered a similar evaluation window on variance (sMSE).
the same data set (Petropoulos and Kourentzes, 2015). However, Apart from the evaluation with different error metrics, an
due to limited sample size, n is set equal to 6 periods for the inventory simulation was performed to assess the alternative
automotive data set (the first origin of the rolling evaluation is the 18th approaches in terms of stock control performance. Following the
period). inventory simulation design by Kourentzes (2014), we simulate
intermittent demand series of 1180 periods. The series are
48 INDUSTRIAL PRODUCT REVIEW
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Inverted intermittent demand time series

4 5
Interval
3
2
1

3 6 9 12 15 18 21 24 27
Cumulative demand

Fig. 3. Inverted intermittent demand series.

Fig. 4. An illustrated view of Inverse ADIDA framework. The aggregation level (demand bucket size) is equal
to three units of demand.

simulated assuming Bernoulli demand arrivals and negative observations are considered as the test-set, where the inventory
binomial demand sizes (Petropoulos et al., 2014), using the performance is measured.
values of the inter-demand interval and the demand squared Following the recommendations of Teunter and Sani (2009),
coefficient of variation from real time series of the two data sets we use an order-up-to-policy that is common in practice. We set
considered. The first 60 observations are used as the training set, four different target service levels (80%, 90%, 95% and 99%) to
while the next 1000 are treated as the burn-in period. The last 120 measure the performance at various reasonable settings. The
INDUSTRIAL PRODUCT REVIEW 49
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inventory review period is set to 1 period (month). To initialise Table 4.


the inventory simulation, we assume the initial stock to be Empirical performance results for the different approaches considered (automotive data set).
equal to the order-up- to level and zero orders in the system. Method sME sMAE sMSE MASE
Since these initial values are ad hoc we use a long burn-in Naive 0.031 0.942 2.621 1.047
period in our simulation to eliminate any artefacts in the Croston 0.045 (0.023) 0.780 (0.771) 1.969 (1.949) 0.869 (0.858)
results due to the choice of initial values. We consider lead SBA 0.006 (0.017) 0.769 (0.770) 1.966 (1.950) 0.855 (0.857)
times of 1 and 5 periods and to simplify the simulation it PK 0.004 (0.019) 0.772 (0.771) 1.967 (1.952) 0.859 (0.858)
is assumed that any out-of-stocks do not produce additional ADIDA(2) 0.013 (0.010) 0.776 (0.768) 1.973 (1.954) 0.863 (0.855)
demand in the following periods and are serviced by ADIDA(6) 0.023 (0.043) 0.772 (0.791) 1.952 (1.993) 0.859 (0.881)
competitors. We keep track of two quantities, the holding stock, iADIDA(2) 0.003 (0.015) 0.771 (0.772) 1.970 (1.956) 0.858 (0.859)
i.e. how much stock was stored during the simulation evaluation iADIDA(mean) 0.012 (0.218) 0.770 (0.747) 1.973 (2.004) 0.856 (0.830)
iADIDA(max) 0.012 (0.013) 0.764 (0.771) 1.952 (1.961) 0.851 (0.858)
period, and the backlog, which is the sum of unserviced units
within the evaluated simulation period. Both quantities are
divided by the mean of the actual demand to make them scale Table 5.
independent and allow for summarisation of the results across Empirical performance results for the different approaches considered (RAF data set).
time series. Method sME sMAE sMSE MASE
Naive 0.263 1.662 92.83 0.931
5. Evaluation Croston 0.123 (0.024) 1.961 (1.877) 81.192 (81.099) 1.050 (1.005)
The two selected data sets provide an ideal platform for SBA 0.067 (0.016) 1.913 (1.871) 81.172 (81.103) 1.025 (1.001)
evaluating iADIDA as they pose different types of PK 0.067 (0.016) 1.913 (1.871) 81.172 (81.103) 1.025 (1.001)
demand. Tables 2 and 3 show that the automotive data set ADIDA(2) 0.061 (0.006) 1.908 (1.862) 81.182 (81.102) 1.021 (0.996)
ADIDA(12) 0.013 (0.044) 1.869 (1.822) 81.234 (81.160) 0.999 (0.974)
demonstrates lower demand intervals than the RAF data iADIDA(2) 0.055 (0.001) 1.903 (1.856) 81.156 (81.139) 1.019 (0.994)
set, so the latter is far more intermittent than the former. iADIDA(mean) 0.050 (0.130) 1.899 (1.747) 81.129 (81.092) 1.016 (0.935)
At the same time, the demand- per-period inter-quartile iADIDA(max) 0.049 (0.018) 1.897 (1.872) 81.067 (81.231) 1.015 (1.002)
range for the automotive data set is 271% higher than the
respective figure of the RAF data set. Thus, the demand of
the automotive data set could be characterised as more
erratic. Therefore, we expect iADIDA to perform better in the
automotive data set rather than the RAF one.
Tables 4 and 5 present the results on the empirical evaluation
for the Automotive and RAF data sets respectively. The
performance of iADIDA is contrasted to that of ADIDA for various
aggregation levels. In total, we consider three variations of
iADIDA. The first one, iADIDA(2), utilises a fixed aggregation level
of 2 demand units. The second one, iADIDA(mean), refers to the
data-driven aggregation level discussed in Section 3, where the
aggregation level of each series is set equal to the mean demand
size. The third one, iADIDA(max), sets the aggregation level equal
to the maximum demand size observed in each series. In the latter
case, the intermittence of the demands in the inverse series is
completely removed. In all cases of ADIDA and iADIDA,
the underlying forecasting method is suggested by the PK
classification scheme (selecting between SES, Croston's
method or SBA).
Also, three simple methods (Naive, Croston and SBA) and the
PK classification scheme applied on the original data are used
as benchmarks. In all cases apart from the Naive method, the
performance of each method is provided both for fixed and
optimised values of the smoothing parameters. The results
for the methods using optimised smoothing parameters are
presented in brackets. The fixed value of both smoothing
parameters ( z and p) is set to 0.1.
50 INDUSTRIAL PRODUCT REVIEW
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Fig. 5. Inventory scaled trade-off curves for the simulated series based on the automotive data set.

Fig. 6. Inventory scaled trade-off curves for the simulated series based on the RAF data set.

The performance of both Croston's method and SBA is compared to Croston's method. This was expected, as SBA
significantly better than that of the Naive, with the latter producing produces less biased forecasts. The PK classification scheme offers
negatively biased forecasts (note that e = y y^). However, a balanced performance in the automotive data set, while the
the Naive method achieves superior accuracy in the RAF data set. high values in the average inter-demand interval of the RAF data
This is due to the fact that the series in these data sets are highly set render the classification scheme identical to SBA. As expected,
intermittent (the median inter-demand interval is 9), meaning that the improvements offered by the ADIDA framework are more
it conveniently produces spot-on zero forecasts which results in apparent in the RAF data set, where the variance of the inter-
under-stocking (highly positive sME). demand intervals is larger compared to the automotive one. If the
In both data sets, SBA results in overall better performance zero forecasts of Naive method are disregarded, ADIDA(12) clearly
INDUSTRIAL PRODUCT REVIEW 51
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PHOTO: ADOBE STOCK


provides the best performance in terms of accuracy for the RAF performs on par or better than well-researched benchmarks and
data set. Confirming the results by Kourentzes (2014), the use of as such the way forward should be a selection procedure that
optimised smoothing parameters compared to ad hoc ones leads includes a pool of iADIDA variants.
to improved performance in the case of RAF data set. With regard to implications to practice one important question
All variants of iADIDA show very promising performance which remains: when does the method work? iADIDA performs in a
is comparable to the rest of the benchmarks considered across similar way to the original ADIDA, in the sense that it helps methods
all considered metrics and both data sets. As it was expected, to improve their performance. It is a method self-improving-
the iADIDA framework performs especially well in the case of the performance mechanism. In this specific instance iADIDA improves
automotive data. iADIDA(mean) and iADIDA(max) yield the most the performance of PK. PK performs a selection between Croston's
accurate results for optimised and fixed smoothing parameters method, SBA and SES based on the values of the mean inter-
respectively. demand interval and the squared coefficient of variation. So, iADIDA
It is worth noticing that in both data sets iADIDA results in is expected to work under the same conditions that the underlying
lower sMSE values and as such the resulted forecasts have less extrapolation methods work and moreover offer further gains.
variance. From a managerial and decision making perspective, We stress that the new proposition is neither a panacea for
this is an extremely important property as it allows for a smoother time series forecasting nor a way to improve the performance
ordering and decision making process (if based and driven on the of any method under any conditions. There is a condition that
derived forecasts). This is also demonstrated to some extent in the favours the application of the iADIDA framework and thus the
second part of the analysis where we evaluate the stock control performance boosting is amplified. This is when a time series has high
performance of the different approaches based on simulated data. data-volume variance. We empirically observed such performance
The efficiency curves (Figs. 5 and 6) show that iADIDA performs by boosting in the automotive data set that demonstrates such time
and large at the same levels as the other methods on stock control series characteristics. In any case, further investigation is needed for
performance. a broader context of selective applicability, a question that is still
Lastly, note that our results are not always aligned with our open for many of the intermittent demand methods.
theoretical expectations. iADIDA(mean) seems to suffer more
than the other models in the bias front when the smoothing 6. Concluding remarks
parameters are optimised. This latter finding may be attributed In this article we proposed an innovative way of temporally
to oversmoothing. The mean version of iADIDA method applies aggregating intermittent demand data in order to reduce the
an aggregation level that is equal to the mean demand size of variance of the demand. The new approach (iADIDA) is based on
each series. So, iADIDA(mean) performs a first layer of smoothing the inversion of the intermittent demand series, which is feasible
and is tuned to work on average conditions. Superimposing through Croston's decomposition. In essence, iADIDA is expected
a layer of optimisation could result in solutions that lie on the to work better when a time-series presents high data-volume
overoptimisation spectrum. This, however, is not the case for variance as methodologically it directly results in reduction of
iADIDA (2) and iADIDA(max) that do not apply that first layer of that specific type of variance, in contrast to the ADIDA framework
smoothing and this empirical finding provides some more validity (Nikolopoulos et al., 2011) that results in reduction of the inter-
to the aforementioned argumentation. The result, however, demand interval variance. We expect that this new approach
remains equally strong: there is always an iADIDA model that will result in improvements related to reduction of the forecasts
52 INDUSTRIAL PRODUCT REVIEW
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variance and possibly increased accuracy performance primarily Petropoulos, F., Kourentzes, N., 2015. Forecast combinations for
in the case of erratic demand and less for lumpy demand, as de- intermittent de- mand. J. Oper. Res. Soc. 66, 914924.
fined by Syntetos et al. (2005). Petropoulos, F., Makridakis, S., Assimakopoulos, V., Nikolopoulos, K., 2014.
We argue that it should not be universally applied in a data set, but Horses for courses in demand forecasting. Eur. J. Oper. Res. 237, 152163.
selectively for the subset containing the time series with the highest Petropoulos, F., Nikolopoulos, K., Spithourakis, G., Assimakopoulos,
data-volume variance. This could be imposed via an ad hoc threshold, V., 2013. Em- pirical heuristics for improving intermittent demand
such as the data-volume variance third quartile, or a more informed forecasting. Ind. Manag. Data Syst. 113 (5), 683696.
and empirically driven criterion through a competition in a holdout. Ritchie, E., Kingsman, B., 1985. Setting stock levels for wholesaling:
We intend to investigate this question further in future research. It performance measures and conflict of objectives between supplier and
is important to note that this is inexorably linked with the selection stockist. Eur. J. Oper. Res. 20, 1724.
of the basic intermittent demand forecasting method selection that Rostami-Tabar, B., Babai, M., Syntetos, A., Ducq, Y., 2013. Demand
remains an open research question. forecasting by temporal aggregation. Naval Res. Logist. 60 (6), 479498.
Given that the proposed algorithm is expected to perform better Rostami-Tabar, B., Babai, M., Syntetos, A., Ducq, Y., 2014. A note on the
under a selectivity criterion, the question that remains is what would forecast performance of temporal aggregation. Naval Res. Logist. 61,
be the nominally selected forecasting approach for the rest of the 489500.
data that present average or low data-volume variance. This could be Spithourakis, G., Petropoulos, F., Babai, M.Z., Nikolopoulos, K.,
resolved through a selection protocol along the lines of the horses for Assimakopoulos, V., 2011. Improving the performance of popular supply
courses approach as discussed by Petropoulos et al. (2014) where SBA chain forecasting techni- ques. Supply Chain Forum, An International
and TSB would be the natural dominant choices. Journal 12 (4), 1625.
In this work, we focused on the performance of the new approach Syntetos, A., Babai, M., Dallery, Y., Teunter, R., 2009. Periodic control of
using real data and a variety of error metrics, as well as simulated data intermittent demand items: theory and empirical analysis. J. Oper. Res.
and inventory stock control evaluation. The theoretically expected Soc. 60, 611618.
impact on the forecasting performance for smooth and intermittent Syntetos, A.A., Boylan, J.E., 2001. On the bias of intermittent demand
series remains out of the scope of this study and thus we leave it for estimates. Int.J. Prod. Econ. 71 (May (13)), 457466.
potential further research. Nonetheless, this work demonstrates that Syntetos, A.A., Boylan, J.E., 2005. The accuracy of intermittent demand
there is merit in re-interpreting the idea of Croston's decomposition. estimates. Int. J. Forecast. 21 (2), 303314.
The literature has so far focused on interpreting intermittent time Syntetos, A.A., Boylan, J.E., Croston, J.D., 2005. On the categorization of
series is a single way that has persisted for more than four decades. In demand patterns. J. Oper. Res. Soc. 56 (5), 495503.
this work, we argue that the proposed inverse interpretation is useful Teunter, R.H., Duncan, L., 2009. Forecasting intermittent demand: a
and allows us to handle the information contained in the time series comparative study. J. Oper. Res. Soc. 60, 321329.
in novel ways, leading to gains in forecast performance. We anticipate Teunter, R.H., Sani, B., 2009. On the bias of Croston's forecasting method.
that this will spur new research in modelling intermittent time series. Eur. J. Oper. Res. 194 (1), 177183.
Teunter, R.H., Syntetos, A.A., Babai, M.Z., 2011. Intermittent demand:
References linking fore- casting to inventory obsolescence. Eur. J. Oper. Res. 214 (3),
Croston, J.D., 1972. Forecasting and stock control for intermittent 606615.
demands. Oper. Res. Q. (19701977) 23 (3), 289303. Vereecke, A., Verstraeten, P., 1994. An inventory management model for
Hyndman, R.J., Koehler, A.B., 2006. Another look at measures of forecast an in- ventory consisting of lumpy items, slow movers and fast movers.
accuracy. Int. J. Forecast. 22 (4), 679688. Int. J. Prod. Econ. 35, 379389.
Kostenko, A.V., Hyndman, R.J., 2006. A note on the categorization of Willemain, T.R., Smart, C.N., Shockor, J.H., DeSautels, P.A., 1994.
demand pat- terns. J. Oper. Res. Soc. 57, 12561257. Forecasting inter- mittent demand in manufacturing: a comparative
Kourentzes, N., 2013. Intermittent demand forecasts with neural evaluation of Croston's method. Int. J. Forecast. 10 (4), 529538.
networks. Int. J. Prod. Econ. 143, 198206.
Kourentzes, N., 2014. On intermittent demand model optimisation and
selection. Int. J. Prod. Econ. 156, 180190. Originally published in:
Kourentzes, N., Petropoulos, F., 2016. Forecasting with multivariate International Journal of Production Economics,
temporal aggregation: the case of promotional modelling. Int. J. Prod. Volume 181, Part A, November 2016, Pages 154161
Econ. 181 (PA), 145153. http://dx.doi.org/10.1016/j.ijpe.2015.09.011. http://dx.doi.org/10.1016/j.ijpe.2016.04.017
Kourentzes, N., Petropoulos, F., Trapero, J.R., 2014. Improving forecasting
by esti- mating time series structural components across multiple (Reproduced with due permission of the authors)
frequencies. Int. J. Forecast. 30 (2), 291302.
Nikolopoulos, K., Syntetos, A.A., Boylan, J.E., Petropoulos, F.,
Assimakopoulos, V., 2011. An aggregatedisaggregate intermittent
demand approach (ADIDA) to forecasting: an empirical proposition and
analysis. J. Oper. Res. Soc. 62 (3), 544554.
INDUSTRIAL PRODUCT REVIEW 53
www.iprmagazine.com | April 2017

Trends

Industry 4.0:
The Future of Manufacturing
The global manufacturing industrys transformative journey through industry 4.0
has already begun. There is hardly any scope for the manufacturing units to skip
this phenomenon. Industry 4.0 has become the new buzzword for the combination
of industry and the Internet of Things (IoT) all over the world. CPC Analytics, having
base in Germany, France and India, provides easy-to-start-with innovative technology
to solve manufacturings most complex and difficult challenges. This brief article
explains the importance of data and its subsequent analysis.

overall share of assembly jobs in the manufacturing industry are


SAHIL DEO JONATHAN RUMMEL dropping more every day, while service roles and other support
Co-Founder, CPC Analytics Data Analyst
roles are increasing2. It could be argued that this is the beginning
s.deo@cpc-analytics.com of what many are calling the fourth industrial revolution, or
Industry 4.0. Essentially, this is a revolution that thrives off of the
The evolution of manufacturing processes advances in materials and manufacturing technologies that
Manufacturing follows a fascinating trend as countries develop. are linked to high powered computing and data analytics. The
A McKinsey & Co. report found that manufacturing employment result is a system of automatization, massively interconnected
follows a reverse U-shape as countries GDP increases - the richer networks of products and the evolution of the manufacturing
a country gets; the less individuals work in manufacturing roles1. industry itself.
An additional study demonstrated how in recent years, the

1 Labaye, Eric. "Perspectives on Manufacturing, Disruptive Technologies, 2 Mischke, Jan. "The Future of Manufacturing Debate." (n.d.): n. pag.
and Industry 4.0." European Economic and Social Committee. McKinsey Intelligent Maufacturing Systems. McKinsey Global Institute, 16
& Company Inc., Consultative Commission on Industrial Change Oct. 2012. Web. 26 Mar. 2017. <http://www.ims.org/wp-content/
(CCMI), 14 Nov. 2014. Web. 26 Mar. 2017. <http://www.eesc.europa.eu/ uploads/2012/10/Session3_03_Mischke_Jan_Policymakers_options_
resources/docs/labaye.pdf>. in_a_complex_manufacturing_world.pdf>.
54 INDUSTRIAL PRODUCT REVIEW
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The evolution of production systems puts visibility at the center stage of competitiveness
Evolution of Mass Production Systems
Early 20th century Scheduling point
Little flexibility
Inbound Logistics Fabrication Final Assembly Outbond Logistics and low
performance

Let 20th century Scheduling point


Some flexibility
Inbound Logistics Fabrication Final Assembly Outbond Logistics and better
performance

Early 21th century Scheduling point


Hilgh level of
Inbound Logistics Fabrication Final Assembly Outbond Logistics personalization
and high
performance

Situation enabled by short lead times and stabilized processes: Achieved


Thanks to Enhanced Visibiltiy and Predictive Analytics

Towards SMART manufacturing Effects of Industry 4.0


SMART manufacturing or Industry 4.0 has three primary What does this all then mean for manufacturing leaders? In
components: cyber physical systems (CPS), the Internet of Things essence, it means that it is vital for manufacturers to identify the
(IoT) and big data analytics3. It is difficult to overlook the impact appropriate technology, information management systems and
that any possess individually as they are all rather dependent on talent to manage the interdependencies of their new industry.
one another. CPSs, for example, are the systems which enable the Industry 4.0 will affect the entire supply chain manufacturing
base foundations for this new industrial revolution by bridging process, enabling firms to develop smarter systems and end-to-
the digital and physical worlds through advanced sensors and end ecosystems. Deloitte University advises a two-point strategy
networking technologies, physically attached to products. These of emphasizing business growth and business operations. Each
sensors can then collect staggering levels of data on the state of these are affected by new technologies and by the bridging
and behaviour of whatever they are measuring. The IoT then of operating technologies (OT) and information technologies
enables these CPSs to disseminate the data from physical realm (IT)5. Specifically, it is important to remain cognizant of the
by connecting numerous products, services and technologies opportunities that can arise in product transformation, as well
through networked array. The results of all of this is vast troves of as customer and engineering transformation. Products may be
information being sent back to the manufacturers to be analyzed, transformed immediately to enhance the user experience, thus
augmented and utilized in existing products and any future impacting aftermarket experiences. Demographic data will be
iterations. This is referred to as the physical- digital-physical cycle4, essential to optimizing distribution patterns and understand what
where physical products are married to the digital world and the customers in which regions want, relative to those in other areas.
insights of that marriage then seamlessly return to the physical Engineers will have access to vast amounts of data to assess their
realm through new designs and services. designs and reduce the time required to introduce new ideas to
the market, thus increasing productivity and innovation. Overall,
manufacturing will soon have the tools and need to evolve their
3 Sniderman, Brenna, Monika Mahto, and Mark J. Cotteleer. "Industry services beyond processing products to incorporate a host of new
4.0 and Manufacturing Ecosystems Exploring the World of Connected opportunities.
Enterprises." Deloitte University Press. Deloitte Development LLC,
2016. Web. Mar. 2017. <https://dupress.deloitte.com/dup-us-en/focus/
industry-4-0/manufacturing-ecosystems-exploring-world-connected-
enterprises.html>.
5 Deloitte AG. "Challenges and Solutions for the Digital Transformation and
4 Deloitte Netherlands. "Industry 4.0 An Introduction." Deloitte. Deloitte Use of Exponential | Deloitte Taiwan | Manufacturing." Deloitte Taiwan.
The Netherlands, 2015. Web. Mar. 2017. <https://www2.deloitte.com/nl/ Deloitte AG, 02 Sept. 2015. Web. 28 Mar. 2017. <https://www2.deloitte.
nl/pages/innovatie/artikelen/industry-4-0-an-introduction.html>. com/tw/en/pages/manufacturing/articles/industry4-0.html#>.
INDUSTRIAL PRODUCT REVIEW 55
www.iprmagazine.com | April 2017

accessible to the manufacturers. It is at this point that people will begin


Our business: Problem solving in situations where the classical methods
of analysis - e.g. organisational and statistical (6 Sigma) - are not to wonder who owns or has rights to that data. Beyond that, concerns on
effective or efficient guaranteeing privacy and safe storage of that data will be at the forefront
of most combative discussions. This data is one of the keys to thriving
Forescasting and automation constitute the crore in this new industry and thus it is particularly important to manage it
potential of data analytics for manufacturing safely and cautiously. It is not unrealistic to imagine many along the
supply/value chain staking claim to specific data points. This is also where
Continous security comes into play, as retrofitting existing products with Industry
Improvement Self-learning Adaptive Control 4.0 capabilities may grant the interconnectedness and networking
capabilities of future products, but none of the security measures due to
Required analytical capabilities

What should Intelligent Future inability to actually adapt the product. This will all need to be monitored
Prescriptive
be done? Control and considered throughout business operations.

What will
Predictive Forecasting The way forward
happen?
There is no denying that the learning curve for adapting to SMART
manufacturing may seem a bit intimidating. However, the benefits of
Why did it
happen? Diagnostic Data Mining these systems far outweigh the challenges of reaching them. Each stage
Past of the new industry cycle is dependent on a different type of technology
What did Dashboards & and that incorporating those new technologies into products will be
happen? Descriptive
Reports the driving force for success. Information will be key and being able to
swim, instead of drowning in all of that data will set the stage for growth.
Optimization potential
The reversal cycle of physical products to digital networks and back to
Importance of data analytics physical products will need to be clearly understood and assessed but
Unfortunately, this does not come freely on the imaginary backs of doing so will allow for a level of growth not seen before.
advanced sensors and high processing computers. In fact, there are a
host of short-term challenges that most firms may not be fully prepared
to address. Perhaps the most immediate obstacle comes in the form of
talent acquisition. In order to set up, maintain and analyze the networks
and/or data associated with Industry 4.0, it will be essential to hire
qualified engineers and talent. However, at current estimates there is a
deficit in the number of people with those skills, so incentives will need
to be made to attract those who are in the market6. These individuals
will be essential to any firm due to the absolute need for those who
can enable interoperability between products - or allow for the creation
and maintenance of CPS. Without talent who can lay this groundwork,
an Industry 4.0 atmosphere cannot exist. As mentioned, however, once
these foundations are laid out manufacturers will quickly evolve their
businesses into one that can thrive off of fast-paced innovation, analytics
and product customization.
With the rapid transformation and success of SMART manufacturing
comes critical risks, as well. In this regard, two factors that should not
be ignored are data management and security. As more and more
products connect via a common network, more and more data will be

6 Sniderman, Brenna, Monika Mahto, and Mark J. Cotteleer. "Industry 4.0 and
Manufacturing Ecosystems Exploring the World of Connected Enterprises."
Deloitte University Press. Deloitte Development LLC, 2016. Web. Mar.
2017. <https://dupress.deloitte.com/dup-us-en/focus/industry-4-0/
manufacturing-ecosystems-exploring-world-connected-enterprises.html>.

CPC Analytics (India/Germany/France)


Gulmohar Apartment, 1792, Sadashiv Peth, Pune 411030
Mob: 72760 66024 | Email : s.deo@cpc-analytics.com | Web: www.cpc-analytics.com
56 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

ERP
PHOTO: ADOBE STOCK

Propel to New Heights with


SAP Business One
SAP, the worlds number DATTATREYA KULKARNI
one ERP solutions company, Director, Praxis Info Solutions Pvt. Ltd.
d.kulkarni@praxisinfosolutions.com
offers a specialized ERP
solution for SME sector
called SAP Business One. This Defining SMEs
Small and medium sized enterprises (SME) companies often drive a large
solution is not only within the percentage of countries economies by delivering goods and services either to the
reach of an SME with respect large enterprises directly or to their Tier 1 / Tier 2 suppliers or to end customers,
to financial investment, depending on the product or services. The question that arises too often is how do
but is also a gateway for define an SME. As per Government of India, the SME sector is categorised into two,
namely manufacturing enterprises and service enterprises. Following table defines
companies to start running the SMEs from manufacturing sector.
their companies as best in If we try to compare the definition of SMEs with that of some of the leading
class by adopting world class western countries, what appears to be common across the board is the fact that
practices. SMEs are considered as businesses that are below a certain threshold value of
parameters that are indicative of size and spread of the operations. Now the real
question is how can SMEs beat this size and spread blues and help themselves
delve into the sea of success?
INDUSTRIAL PRODUCT REVIEW 57
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Manufacturing Sector

Enterprises Investment in Plant and Machinery

Micro Enterprises Does not exceed twenty-five lakh


rupees

Small Enterprises More than twenty-five lakh rupees but


does not exceed five crore

Medium Enterprises More than five crore rupees but does


not exceed ten crore

Diving Deeper into an Indian SME


There are certain common features that characterize an SME in India.
You may note that these are high level and broad observations.

Ownership
Usually SMEs are run by their promoters themselves, as against
being run by externally hired professionals. There could be many
reasons behind this. One of them could be that first-generation
entrepreneurs may typically like to set-up and run the company by
themselves, since that would have been the primary idea to start a
new venture. With a steady growth, many SMEs increase their staff
size and expand operations gradually but the management team
continues to remain the same (promoters).
If business runs in family, then the next generation may get
involved at the appropriate time to take the company further. Whereas
there would be several examples where the promoters bring in
professionals to run the company, good number of SMEs continue to
be governed by the promoters. Irrespective of whether the promoter
runs it or an external professional, SMEs have a small management
team and hence decisions are usually taken quickly.

Geographical Spread
Micro enterprises are almost always run out of one location. Small
and mid-sized enterprises are seen to be run out of more than one
location in many instances. As the business grows, companies need to
expand and are typically seen to be spreading their wings gradually at
locations that they can afford to invest. Sometime they are driven to
an industrial park by their OEM customer that is keen on working on
JIT principle.
Accessing information or knowing the status across multiple
locations in a real-time basis is a typical challenge faced by SMEs, who
have not IT enabled their operations.

Process Standardization or lack of it?


Business processes carried out in an SME, like any other company,
depend on the nature of business. For example, a trading company
may not have certain operational complexities to manage as
compared to a manufacturing company. An SME engaged in any
manufacturing activity has no choice but to follow the production
process that enables it to convert raw materials into finished goods.
58 INDUSTRIAL PRODUCT REVIEW
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SAP Business Mobile Analytics / Dashboards Multilingualism /


One Client Localizations

Financials Sales Service Purchasing Inventory Production


Chart of accounts Opportunity and Service management Purchase request Item management Bills of material
Journal entries pipeline management Service planning Purchase quotations Item lists Item Sets
Posting templates Contact management Tracking across multiple Web-enabled RFQ Price lists Production orders
Recurring postings Activities management customer interactions Purchase orders Goods receipts Goods issues
Exchange rates in multiple currencies Calendar Equipment card handling Goods receipt POs Goods issues Goods receipts
Financial reports Campaign management Service dashboards Goods returns Inventory transactions Production dashboards
Budget management Blanket agreements Service contracts A/P invoice Transfers GL account determination
Cost accounting Quotations Mobile interaction A/P reserve invoice Serial number Life cycle management
Multiple posting periods Purchase orders Recurring transactions Down-payment invoice/request management Item cost calculation
Incoming payments Deliveries Human resource integration Cancel marketing documents Batch number Forecasts
Outgoing payments Returns Knowledge database A/P credit memos management MRP
Payment run Invoices Service calendar Landed costs Pick and pack Drop ship
Bank statement processing Dunning Service call processing Import process Recurring transactions Make to order
Checks Price lists in Inventory tracking Order recommendations
Credits multiple currencies Bin location
Deferred payments Special prices Multiple measurements
Account reconciliation Period and volume discounts Inventory counting
DATEV / ELSTER Customer management
Fixed Assets Gross profit calculation
Microsoft Office integration

However, this does not necessarily mean that they are able to follow create positive impact on company operations, has been adopted
good processes or practices when it comes to managing inventory. only in small patches in SME. Most Indian SMEs do not use world class
In some cases, the processes are laid down but implementing them standardized ERP software applications. Instead, they seem to use
becomes a challenge especially if the activities are done manually accounting software and some other disparate software solutions to
and at multiple locations. Well, some companies may have developed cater to a specific business process. However, basic office automation
a strong manual process with certain checks and balances too but tools seem to be used commonly.
there are good chances that the transaction processing time increases Reasons for not being able to adopt IT could be many, ranging
leading to delays. from lack of awareness, lack of willingness to invest in IT solutions
IT enabled processes are a need of the hour in SMEs as they (they would rather invest in additional plant and machinery to increase
continue to fight competition in order to maintain their edge with production output), or simply not having the time to consider it. There
respect to speed, consistency, quality and cost of the items or services are immense opportunities for SMEs to leverage IT solutions and
that they provide to customers. improve their operational visibility, control costs and manage growth.

Limited resources Scalability


Being small companies, SMEs are usually constrained by limited Many SMEs face a challenge of scaling up the operations. Usually
resources, be it in the form of capital employed or plant & machinery started with small capital and very limited resources, many owners
or employee strength. People are usually tasked with multiple find it challenging to scale the operations rapidly even if they have
responsibilities while at the same time may not be really equipped an expanding market. Reasons for this challenge could range from
with enabling tools. Most of the office related work is managed finances, too much dependency on people rather than processes, lack
manually except in the form of basic office automation software tools of skilled manpower etc.
like MS Office in some companies. Not being process driven leads to creation of bottleneck created
Small companies need strong enablers that will help improve their by limited bandwidth of skilled or knowledgeable staff. It is observed
productivity, reduce manual mistakes, increase speed of work and that some companies, especially where the second generation has
make the operations system driven. come into action (who are highly qualified and trained internationally
in many cases), have realized this and are willing to invest in IT
Poor enterprise IT adoption enablement to move away from people driven to process driven
Information Technology, which has a tremendous potential to company. This is where world class ERP solutions come into play.
INDUSTRIAL PRODUCT REVIEW 59
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It is mandatory for companies to have a standard common ERP


platform if they wish to grow rapidly without being limited by scarcity
of good people or human resources. If the processes are driven by a
system, then companies can work with people of lesser skill levels as
well.

Need for world class ERP solution


An ERP solution is supposed to provide an integrated software
environment where users from across the departments can log in
and keep record of their business transactions in a tightly integrated
manner. There are many software companies who develop such ERP
programs locally, as per customers need and it is observed that many 3D printing and 3D scanning
companies have acquired such locally developed ERP as well. Such Laser cutting and engraving
solutions appear to be less expensive to begin with and are usually Thesis / black book Binding with
tailored to the companys requirement at the time when the solution
Golden embossing
was developed. However, over a period of time these very solutions
are likely to pose challenges such as inability to adopt new changes,
lack of support from the solution developer, lack of new technology
infusion in the product, lack of handling higher scale of operations etc.
In some cases, it was also observed that companies were not able to
take up a new type of business since their ERP system was unable to
handle the scenario.
For reasons mentioned above and may be a few more, it is
recommended that companies go for standard world class ERP
solutions. SAP, which is worlds number of ERP Solutions Company,
offers a specialized ERP solution for SME sector called SAP Business
60 INDUSTRIAL PRODUCT REVIEW
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One. This solution is not only within the reach of an SME with respect trademark SAP robustness. However, what really differentiates it
to financial investment, but is also a gateway for companies to start from others is the flexibility that it offers, even while being robust.
running their companies as best in class by adopting world class There are several features that make the solution very adaptable
practices. to certain unique requirements that an SME may come up with.
Whether it is adding new field with few clicks of mouse, or ease of
SAP Business One The right solution for SMEs setting up process locks, checks, alerts or even creating additional
SAP Business One application offers an affordable way to solution modules. SAP has architected the software in a manner
manage business from sales and customer relationships to that such changes can be handled with extreme ease.
financials and operations. Designed specifically for small businesses
it helps streamline processes, act on timely information, and drive Scalable
profitable growth. SAP Business One can handle increased business transactional
Maintaining a competitive edge means having clear view of volume as the company grows. It can easily support multi-location
all aspects of your business. It means streamlining processes and set-up as well by enabling users to access to single centralized SAP
always being able to get the information when you need it. server as is the case with many of our customers.
If you can effectively track and access all customer-related
information, for example, you can better service your customers at Low total cost of ownership
every point of contact, helping ensure repeat business. And if you One of the myths amongst the owners of SMEs is SAP is very
can accurately monitor and manage revenue and expenses, you expensive and is not meant for small companies. This is mostly due
will be positioned to optimize cash flow, increasing your financial to awareness. Once educated on SAP Business One offering, they
strength and the flexibility to respond quickly when business realize that the solution is very much within their reach.
opportunities arise. SAP Business One has a low total cost of ownership across
The SAP Business One application is an affordable, following:
comprehensive solution that provides functionality for every core Affordable license cost and AMC structure
process you need to run your entire business. Unlike niche solutions, Quick to implement
SAP Business One supports integrated management functions, Affordable implementation fees of partners
including financials, sales, customers, inventory, and operations, Does not need high end servers (Cloud option is also available)
without the need for separate installations and complex integration Low cost of ongoing maintenance
of multiple modules. Designed specifically for small businesses, its 24 X 7 support from SAP, in case there are any product support
quick to install, and more important, straightforward to maintain requirements
and use. Free access to patches, upgrades, releases etc.
Business information captured in a single system is instantly
accessible across the organization, eliminating duplicate data entry SAP Business One has tremendous potential in helping SMEs
along with related errors and subsequent costs. Workflow-based run themselves at higher efficiency levels with increased visibility
alerts trigger auto-response when important business events occur, in operations, reduction in manual and repetitive work, reduction
so you can monitor and focus on those that are most critical. in cost (better inventory control, more checks and balances) and
enhanced customer relationship.
Key functionalities of SAP Business One
SAP Business One offers following key functionalities (as of
current release which is 9.1).

Easy to adopt
One of the critical success factors for an ERP project is speed
and ease of user adoption. SAP Business One has very user friendly Praxis Info Solutions Pvt. Ltd., an authorized SAP
and intuitive screens that are standardized across modules so that Partner, has helped close to 50 customers in adopting
users can get trained rapidly and get comfortable with the system SAP Business One solution successfully. These
within no time. companies belong to various industry sectors viz.
automotive components, manufacturing, food and
beverage, specialty chemicals, media and services.
Robust and flexible
SAP Business One is a world-class product that comes with

Praxis Info Solutions Pvt. Ltd.


101, Sujam, Behind Maharaja Complex, Paud Road, Kothrud, Pune 411038
Mob: 88050 25518 / 19 / 20 | Email: d.kulkarni@praxisinfosolutions.com | Web: www.praxisinfosolutions.com
INDUSTRIAL PRODUCT REVIEW 61
www.iprmagazine.com | April 2017

Company Prole

Kalbag Filters:
Leading Manufacturers of Resin
Bonded Cellulose Cartridges
About Resin Bonded
Cellulose Filter
Cartridges:
The RBC (Resin Bonded Cellulose)
filter cartridge is produced from
cellulose fibres, which have been
intrinsically bonded together by a
Chandrashekhar Mankikar
Managing Director melamine resin, to create a solid, highly
durable, yet porous structure. The salient

W
ith a blend of quality and features of our RBC cartridges are:
innovation, Kalbag Filters Highly effective in filtration of water,
Pvt. Ltd., an ISO 9001:2008 different types of oil, honey, diesel,
company, has emerged as the leading piped air etc.
manufacturer and supplier of technically Does not impart taste, odour or colour
processed Resin Bonded Cellulose (RBC) to the liquid being filtered.
filter cartridges. This unique technology Completely safe for applications
of filtration is the brainchild of Late involving potable drinking water,
Shri. Shantaram Kalbag who after years beverages, cosmetics, syrups etc.
of applied research and tireless efforts Capable of giving flowrate as high as
succeeded in inventing this technology 1200 litres/hour.
based on physical separation of Capable of withstanding temperatures
suspended impurities which gives pure up to 90 degrees Celsius.
and bacteria free water depending Has a high dirt holding capacity.
on the micron rating of the cartridge. Can be washed and reused.
A Special filter unit is available
Currently Shri. Chandrashekhar Mankikar Can be produced in a wide range of
for Household purposes. This
filter unit consists of a cartridge
is carrying forward the filtration legacy micron (From 100 to 0.1 micron).
capable of delivering bacteria free
and is marching towards Late Shri. These RBC filters are available in a water up to 0.4 micron which is
Kalbags dream of providing affordable variety of sizes completely safe and healthy for
pure drinking water to mankind. OD: 62.5 mm / 70 mm human consumption. The output
Though initially designed focusing only ID: 25 mm / 28 mm / 30 mm of water from this filter unit is in
on water filtration, extensive research Height: 100 mm to 250 mm accordance with BIS standard
and development has led to the filter (Ready Stock) 10500 : 2012. This is currently one
cartridges being widely used in other 500 mm / 750 mm / 1000 mm of the highest standards set for
areas of filtration also. (On Request) drinking water in India.

Kalbag Filters Pvt. Ltd.


S. No. 77/3, Walhekarwadi, Chinchwad, Pune - 411033
Tel: 020 - 6410 2211 | Mob: 94223 11075 | Email: kalbagfilters@gmail.com, kalbagfilters@rediffmail.com | Web: www.kalbagfilters.com
62 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

New Technology

Use of High Efficiency Mist Cooling


System for Power Plants
The mist creation technology is the best and superior alternative to conventional
cooling towers. The advanced mist creation system can achieve an approach of 1 to
2oC to WBT as against 5 to 6oC approach for conventional cooling tower. This article
reviews basic types of cooling systems utilized in power plants and other industries.

MAKARAND CHITALE system. Thus the wet cooling system came into effect.
In a wet cooling system, water is circulated to condense the steam
Director (Technical), Mist Ressonance Engineering Pvt. Ltd.
in the same type of heat exchanger that is used in the once through
mistcreation@gmail.com cooling. The warm water, instead of being returned to the water
source, is cooled in a cooling tower using air as the cooling medium.
Abstract Only the water carried away due to evaporation, drift and blow-down
Water cooling has played an important role in all types of process needs to be replenished by make-up water. Thus, requirement of water
industries and power plants since its inception. Efficiency of a quantity is vastly reduced.
process industry largely depends on availability of designed cold water
temperature throughout the year, but mainly in summer and monsoon. Wet cooling systems
During these months when humidity is high, cooling tower fails to
achieve desired cold water temperature, which results in lower efficiency 1. Wet cooling tower system
of power plant, in turn resulting in loss of product vapour. Now it is We will first consider the wet cooling tower system. The wet
times need to find new solution to get desired cold water temperature cooling tower system is based on the principle of evaporation. The
throughout the year. heated water coming out of the surface condenser is cooled as it flows
The ultimate mist creation technology is the best alternative to through a cooling tower, where air is forced through the tower by either
conventional cooling towers. The advanced mist creation system can mechanical or natural draft. Now a days, mostly, all wet cooling towers
achieve an approach of 1 to 2oC to WBT as against 5 to 6oC approach for are mechanical draft cooling towers, where the air flow is accomplished
conventional cooling tower. Hence guaranteed cold water temperature by fans.
of around 30oC could be obtained throughout the year in our tropical In case of a power plant, the steam turbine is not directly connected
climate. Also the spraying head is equivalent to the height of cooling to the cooling system, so this is in fact an indirect cooling system. The
towers thus requiring same pumping power. As mist creation system steam from the steam turbine is condensed at the outside of the
does not require fans for cooling it saves huge amount of power. Also, surface condenser tubes, using cold water coming from the cooling
as there are no moving parts involved in mist creation system the tower. Part of the cooling water is evaporated in the cooling tower, and a
maintenance cost is negligible and system runs trouble free. continuous source of fresh water (makeup water) is required to operate
This article will review basic types of cooling systems utilised a wet cooling tower. Make-up requirements for a cooling tower consists
in power plants and other industries. It will also explain why new of the summation of evaporation loss, drift loss and blow-down.
advanced mist creation system is superior than conventional cooling The principle cooling device used in an induced /forced draft
towers. cooling tower are fans, which run at the top of cooling tower (CT).
Air enters through side louvers and escapes from the top. Water enters
Introduction at the top and trickles down while getting cooled by air draft.
In process / chemical plants, product vapour generated in the A correctly designed induced draft CT can give an approach of 4 to
process is condensed in a heat exchanger and is recovered back. 6C to wet bulb temperature with a temperature drop of 10oC. Even a
The condensation of steam / Vapour requires a cooling medium. very highly efficient CT can not give an approach less than 4oC to WBT.
In early days this was achieved by using water from a river, a pond or Moreover, if ambient temperature or humidity levels rise, efficiency of CT
seawater. The cold water is pumped through a heat exchanger and the reduces.
warm water is discharged back to the water source. This is called once
through cooling system. Lets consider this through an example
A once through system is an open loop system. The necessity to For a chemical plant, an induced draft cooling tower is designed
reduce the huge amount of water gave birth to the idea of closed loop to maintain cold water temperature of 32oC at a WBT of 28oC with an
INDUSTRIAL PRODUCT REVIEW 63
www.iprmagazine.com | April 2017

PLAN A: HEAT EXCHANGER WITH COOLING TOWER


Circulation Water Cycle in Cooling Tower Plan A

PLAN B: HEAT EXCHANGER WITH MIST COOLING SYSTEM


Circulation Water Cycle in MCS Plan B

approach of 4oC. Cooling tower performs as desired during winter, early wet bulb temperature with a temperature drop of 12 to 15oC even in
summer months. But during peak summer / monsoon, efficiency adverse climatic conditions.
of cooling tower reduces as humidity rises and its approach to WBT In tropical conditions, worst wet bulb temperature, even at coastal
reaches beyond 6oC from design 4oC. Thus due to this rise in cold water applications is maximum 30.5oC. Hence, MCS will always maintain cold
temperature, these industries always experience loss in production by water of around 31oC+1oC throughout the year. No other cooling system
at least 5 to 7%. These losses do not occur in winter months. This means can operate with such efficiency and it makes cooling tower/spray pond
that the plant will operate at a reduced efficiency for almost 5 to 6 systems obsolete.
months in a year. (Kindly refer Graphs A and B)
Also due to use of fans, CT consumes a lot of power. It is observed Salient features of Mist Cooling System
that the efficiency of CT reduces over a period of time due to ware and
tear of moving parts, fills, fins etc. which invites heavy maintenance. 1. Cold water temperature
Hence, there is an urgent demand from the industry for a water- Mist Cooling System ensures an approach of 1oC to WBT with a
cooling system, which will operate with high efficiency even in adverse temperature drop of 12oC to 15oC .
climatic conditions and maintain cold water temperature in closed 2. Energy savings
vicinity to WBT. Due to increase in DT, water quantity required at the process side is
much less. MCS requires water pressure equivalent to the height of
2. Mist Cooling System cooling tower as shown in the diagrams. Hence, considerable amount
Mist Ressonance Engineering Engineering Pvt. Ltd (MREPL) has of energy is saved on circulation water pumping. Also, MCS does not
come out with a solution by designing mist cooling system, a high require any fans for cooling. Thus, a huge amount of energy is saved on
efficiency system, which ensures an approach of 1oC to prevailing circulation and cooling. (Please refer diagrams Plan A and B)
64 INDUSTRIAL PRODUCT REVIEW
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Comparison Table Between Induced Draft Cooling


Tower / Fanless Cooling Tower and Louver Type Mist Cooling System
Sr. No. Feature Induced Draft Cooling Tower (IDCT) Fan less / Jet Cooling Tower Louver Type Mist Cooling System (MCS)

1 Approach to WBT 4 to 5 degrees. 6 to 8 degrees. 1 to 2 Degrees.

2 Temperature Drop 8 to 10 Degrees 6 to 8 Degrees Regular: 12 Degrees.


Advanced Model guarantees up to 40 Degree C in
a single stroke
3 POWER CONSUMED 100 HP : 100% 100 HP : 100% 70 HP : 70%
(Comparison for a 1000 m3/
hr circulation flow assuming 70 HP : 100% on Pumping & 100 HP : 140% on 70 HP : 100 % on
IDCTs Total Power as 100%) 30 HP : Fan) Pumping and 00 HP : Fan) Pumping and 00 HP : Fan)
(Please refer Diagram
PLAN-A & PLAN-B )
4 Nozzles Ordinary type which choke Ordinary Jet type which Special whirling type, choke-less design
frequently choke frequently incorporating non-moving parts with 25 mm
bore opening
5 Water droplet size 5 mm 2 to 3 mm Atomized to 5 to 50 Microns

6 Travel time Less due to Downward fall only. Less due to Two time travel due to upward & downward travel
Downward fall only. leads to Double air retention time

7 Fills/ fins Various types used - prone to Various types used - prone ABSOLUTELY NO FILLS / NO FINS
scaling, need Periodical changing to scaling, need Periodical REQUIRED
changing
8 Drift Loss Same Same Same

9 Make Up Water same same Same due to similar hold up.

10 Flexibility Limited Limited Individual Line Isolation offers max. flexibility to


use capacity as per requirement.

11 Standby Required Not Required Not Required

12 Erection/delivery Substantially high Low Fairly less

13 Maintenance Very high due to replacement of Very high due to Negligible maintenance due to choke less
fills/ fins/ fan blades etc. Also replacement of fills/ fins operation and non- moving parts
due to deposition of dust on fills, etc. Also due to deposition
efficiency reduces with time of dust on fills, efficiency
reduces with time
14 Aesthetics Bulky, Generally most neglected Untidy Appears Fresh and Dynamic resembling
part in a Plant active water like fountain

15 Civil Construction Heavy due to static and dynamic Less Simple due to table top construction with static
load load

16 Total Footprint Less Higher than CT * More by 2 to 4 times to IDCT

Note: As capacity (flow, M3/Hr) through MCS increases, ratio of area required between MCS and CT reduces.
INDUSTRIAL PRODUCT REVIEW 65
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66 INDUSTRIAL PRODUCT REVIEW
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Open Pond Design Terrace Top MCS Design Louver Type MCS

3. Process benefits showing better BOD and COD values.


Mist Cooling System will supply cold water at a temperature very close 8. System flexibility (Capacity turn down ratio)
to WBT (Approach of 2oC) as against an approach of 6 to 7oC in cooling We offer MCS with individual line isolation valve. MCS is the only system,
tower. This will reduce the product vapour losses in shell and tube heat which gives you such a high flexibility in operation.
exchangers. This will ensure that your plant operates at an enhanced 9. Hydro- Balance Valve
yield in summer and monsoon also. This also means that your plant can A) Sub cooling in winter: MCS is provided with an inbuilt hydro-
operate at its full load throughout the year. balance system (HBV) for temperature control. HBV can be set at
4. Maintenance a specific pressure. To avoid sub cooling in winter, HBV can be
MCS has no moving parts. Also the material used in the Mist Cooling set at a lower pressure than the system operating pressure. Hence
System is special grade saran polymer, a highly non-corrosive material it will bypass some fixed amount of hot water (as per setting) from
having a life of more than 10-15 years. This makes MCS absolutely distribution header directly into MCS pond so as to obtain desired
maintenance free. As against this, cooling towers require a heavy CW temperature. This HBV is normally manual controlled. But can be
maintenance in the form of replacement of louvers, fan blades, clamps offered with actuator operation if desired.
etc. every year. B) Hydro-balance system also helps to release the excess pressure
5. Chokeless design: MCS operates with a chokeless design. Size of which may develop on the system at times.
smallest opening in MCS is more than one inch (25 mm) in diameter. 10. Chemical Treatment
Hence, chances of particles choking the system are minimum. Chemical dosing requirements are similar to that of cooling tower as
6. Various designs of MCS to suit site conditions: same hold up of water is maintained in suction pit.
A) Open pond MCS: Here, MCS ensures an approach of 1oC to WBT with 11. Make-Up Water Requirement
aT of 12 to 15oC. Water loss due to drift is 0.1 to 0.25% depending on Due to the latest louver type design, drift loss through MCS is reduced
wind load. to 0.002% while maintaining an approach of around 2oC to wet bulb
B) Louver type MCS: Here MCS pond is closed from sides, up to a height temperature. Hence, overall make-up water quantity required is
of 6 mt. by louver type cover sheeting. This reduces the plot size by approximately same as compared to cooling towers.
60% of open pond design. MCS ensures an approach of 2.5oC to WBT 12. Pay back period
with a T of 12 to 15oC. Drift loss comes down to 0.002% and also The pay back period of the MCS will be less than one year only.
space requirement reduces considerably.
C) Table top design to prevent algae formation: Latest table top MCS matches the design as per need
design of MCS pond does not allow formation of water level inside MCS can be put to use in open pond or louver type MCS designs
the pond and all water passes to suction pit which is covered to suit the need. Open pond ensures an approach of 1oC to WBT
from top thus minimizing chances of algae formation. while louver type MCS pond ensures an approach of 2.5oC to WBT.
D) MCS design for working in dusty environment: Unique suction pit Space requirement of closed pond is only 65 to 70% of open pond. Also
design does not allow dust to pass to the inlet of circulation pumps. , there is an option of Advance MCS best suitable for plants where there
Dust is drained from drain valve while only clear water passes to is space limitations. Considering the need for high efficiency system
circulation water pumps. required by the various industries, MCS surely meets the demand at a
7. Water quality extremely affordable price.
MCS ensures efficient atomization and the consequent absorption
and retention of air by water particles thus causing aeration of water,

Mist Ressonance Engineering Pvt. Ltd.


Anandi 1304-1/7 Shukrawar Peth, Bajirao Road, Pune - 411002
Tel : 020 -2447 2726 / 1184 | Email : mistcool@vsnl.com / mistcreation@gmail.com | Web: www.mistcreation.com
INDUSTRIAL PRODUCT REVIEW 67
www.iprmagazine.com | April 2017

Product Review
GARANT MasterSteel SlotMachine:
Steel has found its master
Hoffman Group recently launched new solid carbide end mill exhibiting
highest precision and impressive durability. The newly launched GARANT
MasterSteel product range offers 5 cutting edges and an innovative
knuckle form profile.

For full slot milling in

PHOTO: WWW.HOFFMANN-GROUP.COM
steel at a high feed rate
The new GARANT MasterSteel
SlotMachine from the Hoffmann
Group is a solid carbide roughing end
mill which achieves high feed rates
when slot milling from solid in steel.
The innovative knuckle form profile
produces extremely compact swarf.
Therefore, the Hoffmann Group was
able to construct the milling cutter The new GARANT MasterSteel SlotMachine five-edge end mill offers up to 25 percent higher
process efficiency than a four-edge end mill. The innovative knuckle form profile minimises
with five cutting edges. As a result, the cutting pressure, putting less load on the component.
at a constant feed rate per tooth the
new five-edge end mill achieves 25 rolled. These are easily cleared by extends the GARANT MasterSteel
percent higher process efficiency than the flat chip-breaker recesses. The product range, which currently
a classic four-edge end mill. Thanks to directional chip discharge increases includes the existing classic four-
the innovative knuckle form profile, the process reliability, the extremely edge end mills and also the GARANT
the cutting pressure is lower and sturdy core diameter the tool stability. MasterSteel PickPocket universal end
higher feed rates can be obtained The GARANT MasterSteel mill plus two solid carbide drills. With
with a constant load. Due to the SlotMachine permits plunge angles these the Hoffmann Group offers state-
compact chips and the lower cutting up to ten degrees. The cutting-edge of-the-art high-performance tools for
forces, the new GARANT MasterSteel design includes honing to minimise every application.
SlotMachine high-performance end the risk of break-away. The ultra-fine
mill is particularly suitable both for grain substrate greatly increases the Technical Specifications
milling deep slots from solid and also resistance to breakage; whilst the The GARANT MasterSteel
for machining delicate components. enhanced coating also optimises the SlotMachine achieves a feed rate per
Based on its unusual geometry, wear characteristics and reduces the tooth up to 0.1 millimetre at a cutting
the new GARANT MasterSteel rate of heat input. The unequal spacing depth up to twice the tool diameter
SlotMachine solid carbide end mill ensures a smooth cutting action. (2xD). It is available with cutter
produces chips that are very short, The new GARANT MasterSteel diameters from 4 to 20 millimetres.
very fine and particularly tightly SlotMachine solid carbide end mill

Hoffmann Quality Tools India Pvt. Ltd.


The Executive Centre, Unit 11 and 12, Business Bay, Level 6, Wing 1, Tower A, Airport Road, Yerwada, Pune 411006.
Tel: 020 - 6707 2399 | Email: india@hoffmann-group.com | Web: www.hoffmann-group.com
68 INDUSTRIAL PRODUCT REVIEW
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Legal Aspect

National Green Tribunal (NGT)


for Environmental Justice
India is only the third country in the world to have the National Green Tribunal (NGT),
a special fast-track quasi-judicial body for environmental justice. Since its incep-
tion in 2010, NGT has given many fast-track judgments in various cases. Although, it is
unlikely that NGT is a cure for all environmental problems, but certainly it is going to
provide a lead, in the new forms of environmental dispute resolution.

ADV. SAURABH KULKARNI of twenty full time judicial members as the Central Government may
L.L.M. (International Commercial Law, UK) notify from time to time and not less than ten but subject to maximum
sdkadvocate@gmail.com of twenty full time expert members as the Central Government may
notify from time to time. The Chairperson has the authority to invite
Introduction one or more persons having specialized knowledge and expertise to
National Green Tribunal was established on 5th May 2010 under assist in a case if considered necessary. The Chairperson along with the
Article 21 of the Indian Constitution which guarantees citizens of India Central Government makes rules for governing the procedures and
the right to a healthy environment. India is only the third country in the rules of the tribunal.
world, following Australia and New Zealand, to have such a system to
protect its environment. The tribunal is a special fast-track quasi-judicial Jurisdiction
body comprising of judges and environment experts who will ensure Schedule I of the National Green Tribunal Act compromises of -
expeditious disposal of cases. The tribunal is established for the effective The Water (Prevention and Control of Pollution) Act, 1974
and speedy disposal of cases related to the protection of environment The Water (Prevention and Control of Pollution) Cess Act, 1977
and giving relief and compensation for damages to persons and The Forest (Conservation) Act, 1980
property and for matters connected with it. The Air (Prevention and Control of Pollution) Act, 1981
One of secondary objectives behind the establishment of NGT is The Environment (Protection) Act, 1986
to reduce the burden of litigation in the higher courts. The tribunal The Public Liability Insurance Act, 1991 and
has jurisdiction over matters related to the environment and is not The Biological Diversity Act, 2002.
bound by the Civil Procedure Code, 1908 but works on the principles The Tribunal has jurisdiction over all civil cases where a substantial
of natural justice. The Principal Bench of the tribunal is based at New question relating to environment is involved and such question arises
Delhi with circuit benches at Chennai, Bhopal, Pune and Kolkata so that out of the implementation of the enactments specified in Schedule I.
it can reach remoter parts of India. The principal bench and the regional Sec 14 of the National Green Tribunal further adds that no application
benches are all currently functional. The first chairman of the National for adjudication of dispute shall be entertained by the Tribunal unless it
Green Tribunal was Honble Mr. Justice Lokeshwar Singh Panta who is made within a period of six months from the date on which the cause
relinquished his post on being appointed as Lokayukta of Himachal of action for such dispute first arose. Provided that the Tribunal may, if
Pradesh. He was succeeded by Honble Mr. Justice Swatanter Kumar. it is satisfied that the applicant was prevented by sufficient cause from
filing the application within the said period, allow it to be filed within a
The Act further period not exceeding sixty days. The tribunal has the authority
The National Green Tribunal is governed by the National Green to hear and dispose of cases related to the acts specified in Schedule I
Tribunal Act, 2010 which came into force on 2nd June 2010 in in accordance with Sec 14 of the Act.
accordance with decisions taken at the United Nations Conference on The tribunal has the authority to provide relief and compensation
Environment and Development held at Rio De Janeiro in June 1992, to the victims of pollution and other environmental damage arising
in which India participated. The act provides for the establishment of under the enactments specified in the Schedule I which includes
the tribunal and also specifies the jurisdiction, powers and authorities accident occurring while handling any hazardous substance but
of the tribunal. Sec 4(1) of the National Green Tribunal Act states the no application for grant of any compensation or relief or restitution
composition of the Tribunal and specifies that the tribunal shall consist of property or environment under section 15 of the act would be
of a full-time chairperson, not less than ten but subject to maximum entertained by the Tribunal unless it is made within a period of five
INDUSTRIAL PRODUCT REVIEW 69
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PHOTO: ADOBE STOCK


years from the date on which the cause for such compensation in the area in which any industries, operations or processes or class of
or relief first arose provided that the Tribunal may, if it is satisfied industries, operations and processes shall not be carried out or shall
that the applicant was prevented by sufficient cause filing the be carried out subject to certain safeguards under the Environment
application within the said period, allow it to be filed within a further
period not exceeding sixty days. The tribunal can by order provide
for restitution of property damaged and also for restitution of the
environment for such area or areas, as the Tribunal may think fit. The
Tribunal can, having regard to the damage to public health, property
and environment, divide the compensation or relief payable under
separate head specified in schedule II so as to provide compensation
or relief to. the claimants and for restitution of the damaged property
or environment. Every claimant of the compensation or relief under
this Act is required to intimate the Tribunal about the application filed
for compensation or relief received from, any other Court or authority.
An award or order or decision of the Tribunal under this Act shall be
executable by the tribunal as a decree of a civil court, and for this
purpose, the tribunal shall have all the powers of a civil court.

Appellate jurisdiction
The Tribunal also has appellate jurisdiction under the National
Green Tribunal Act. The tribunal has appellate jurisdiction against an
order passed by the state Government under section 29 of the Water
(Prevention and Control of Pollution) Act, 1974 (6 of 1974), directions
issued by a Board under section 33-A of the Water (prevention and
Control of pollution) Act, 1974 (6 of 1974), an order or decision made
by the appellate authority under section 13 of the Water (Prevention
and Control of pollution) Cess Act, 1977 (36 of 1977), an order or
decision made by the state Government or other authority under
section 2 of the Forest (Conservation) Act, 1980 (69 of 1980), an
order or decision by the Appellate Authority under section 31 of the
Air (Prevention and control of Pollution) Act, 1981 (14 of 1981), any
direction issued under section 5 of the Environment (protection)
Act, 1986 (29 of 1986), an order granting environmental clearance
70 INDUSTRIAL PRODUCT REVIEW
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(Protection) Act, 1986 (29 of 1986), an order refusing to grant


environmental clearance for carrying out any activity or operation or Pune gets NGT Circuit Bench
process under the Environment (Protection) Act, 1986 (29 of 1986) and The National Green Tribunal started its Pune Circuit
any determination of benefit sharing or order made by the National Bench, a dedicated environmental court, at the Council
Biodiversity authority or a State Biodiversity Board under the provisions Hall in February 2012. The Pune Bench has its jurisdiction
of the Biological Diversity Act, 2002 (18 of 2003). over Maharashtra, Gujarat, Goa and Daman and Diu.

Limitations Address:
National Green Tribunal, Western Zone Branch, Pune
Any application can be made to the tribunal against the above
New Administrative Building, 1st Floor, D-Wing, Opposite
listed orders within thirty days from the date on which the order
Council Hall, Pune - 411001
or decision or direction or determination is communicated to the Tel. 020-26056030
concerned party.

Appeal against decision of the National Green location within the village boundaries with similar accommodation and
suitable playground around, along with all modern basic amenities as
Tribunal required by the local Education Department. Moreover, the court ordered
Any person aggrieved by any award, decision or order of the tribunal,
that this entire process should be completed within a period of 6 months
may file an appeal to the Supreme Court, within ninety days from the
from the date of receipt of this judgment.
date of communication of the award, decision or order of the tribunal, to
The National Green Tribunal on 9th February 2012 also suspended
him, or any one or more of the grounds specified in Sec 100 of the Code
the environment clearance granted for expansion to a steel and
of Civil Procedure, provided that the Supreme Court may entertain any
power company in Chhattisgarh. The NGT also directed the Ministry of
appeal after the expiry of ninety days, if it is satisfied that the appellant
Environment and Forests to develop mechanism to check authenticity
was prevented by sufficient cause from preferring the appeal.
of environmental data and blacklist EIA consultants who provide wrong
data. The NGT also set aside environmental clearance granted to the
Judgements municipal solid waste processing plant of Municipal Corporation of
The National Green Tribunal gave its first Judgment on 12th Chennai for providing false information in the EIA on 24th February
September, 2011. In its first judgment, the tribunal suspended the 2012. The National Green tribunal has given many more such
environmental clearance of a Mining project in Sindhudurg district of judgements till date.
Maharashtra. The tribunal found that the Terms of Reference (ToR) for
conducting the environmental impact assessment of the mines has Conclusion
been violated in this case. Since, the National Green Tribunal, though The National Green Tribunal was established as a special fast-track
constituted, was non-functional at the time when the cause of action quasi-judicial body comprising of judges and environment experts who
arose; the appellants had approached the Honble Supreme Court by will ensure speedy disposal of cases. The National Green Tribunal has
way of filing Special Leave Petition (Civil) No. 7348 of 2011. Finally, the given fast-track judgements in many cases ensuring that the purpose of
said SLP (C) was disposed of on 15th May 2011 with a liberty to the its establishment is satisfied. However, some environmental clearances
appellant herein to approach this Tribunal. are of such a grave nature, that giving a judgement on them within
The court ordered the Respondent No. 1 which was The Ministry a span of 6 months would lead to grave injustice. Therefore, on one
of Environment and Forests, through its Principal Secretary to place the hand, the NGT gives fast-track judgements; while on the other hand
matter before the new EAC (Mining) and seek a fresh consideration of the the Tribunal deals with some cases extensively, when required. The
matter taking all the material as available as on date as to compliances. NGT fulfils it purpose of stopping environmental violations very well.
The court further said that if the EAC considered it necessary to impose Following a PIL, the National Green Tribunal has passed an order to
additional conditions, it may direct the proponent to comply with curb noise pollution in Delhi, outlining actions that include making
the same including fresh EIA based on prescribed ToR before taking a noise pollution a compoundable offence. The tribunal has asked traffic
decision for revival of the EC. However, the tribunal made it clear that cops to act against polluting vehicles. The National Green Tribunal
the EAC is at liberty to reject or accept the proposal for recommending also suspended the environmental clearance granted to a mega
revival of EC in favour of the project proponent. The court also stated steel project in Odisha in January 2011. The establishment of NGT has
that EAC, however, should call for a fresh report in so far as causing air, benefited India to a great extent and will certainly make a difference in
noise and water pollution and may recommend for relocating the school future.
situated in the area of concern by constructing a new building at a safe

M/S D. V. Kulkarni & Co. Advocates


420, Shaniwar Peth, Near Ahilya Devi High School, Next to Sudarshan Hall, Pune - 411030
Tel: 020-6522 4756 / 2445 9027 | Mob: 95610 98499 | Web: www.dvkulkarni.com
INDUSTRIAL PRODUCT REVIEW 71
www.iprmagazine.com | April 2017

Company Prole Company Prole

Drytech Engineering:
Total Solution Engineers
for Compressed Air System
Green India Products:
D
rytech Engineers is a decade old
organization established with aim
of offering solutions in the field of Caring for Environment
compressed air filtration and purification

A
(drying) system. The main driving force n estimated of 18
behind for steady growth of the company to 20 thousand
is its dedicated team of qualified and well drinking water
experienced Solution Engineers. bottles are scattered on
railway station terminals or
We design and manufacture Our standard products are designed in the bogies of train. An
from 7 -16 Kg/cm2 pressure. We also offer estimated of 10 thousand
products having customized low pressure system as well odd bottles are left in the
Highest customer satisfaction Rajiv Natu
compressed air high pressure system upto Founder, big clubs per week and
abilities on the basis of quality and
400 Kg/cm2 pressure. Green India Products an estimated 17 thousand
performance
drinking water bottles are
Energy saving capacity
Long service life
Highlights found around bus terminals.
We are also authorized dealers for Think, what is the amount of garbage we
User friendly structure
Chicago Pneumatics (A Division of create at these public places. The plastic as you
Atlas Copco India Ltd.) for Screw / know lasts for nearly 150 years.
Our highest priority Reciprocating Compressors
shall continue to remain We undertake complete turnkey Solution
committed for projects for compressed air system and There are many. We, at Green India
Affordability - While following compressed air audit to save energy Products, have taken first step to minimize the
highest engineering standards in and to supply quality air as per ISO garbage by creating a machine called Bottle
manufacturing 8573 standards. Cutting Machine.
Acceptability - Being better by design, Our customer base is from government
user friendly. organizations like Indian Railways, Gas About bottle cutting machine
Accessibility - Through ever increasing Turbine Research Establishment, ARAI The machine rests on strong MS or SS frame.
network to serve better. etc. to private sector companies like It can shred any type of plastic into shredded
Tata Motors Ltd., Bajaj Auto Ltd., Bajaj form
Hindustan Group, Bharat Forge Group, The size of the machine is 4 feet by 4.5 feet
Our product manufacturing Thermax, Walchandnagar Industries, Praj, (Land required 26 sq. ft. approximately).
range includes L&T Group etc. The weight of the machine will be around 75 kg.
Moisture Separator We cater for the applications from The machine has a motor of 1 hp (3-phase).
After Cooler with Moisture Separator sugar, engineering, pharmaceuticals, The machine can be operated by a single
Tube bundle for Heat Exchanger textile, defence, electronics, food, person.
Pressure vessel (Air Receiver) mineral water, healthcare etc. The machine is very user-friendly and does not
Coalescing Filter (Fine Filter Combination) Drytech Engineering aims to provide require repairs.
Compressed air drying plant entire solutions to your compressed air In case of any repairs, we can cater to the same
Heatless (Desiccant) type dryer system under one roof. in short time.
Refrigerated dryer The shredded material can be sold in the
Auto drain Valve Electronic and market at a price of Rs. 6 per kilogram.
mechanical

Drytech Engineering Green India Products


Shop No. 12-15, Sapana Co-op Housing Society, Off Pune-Satara Road, Dhankawadi, Pune - 411043 Shanti Sagar Apartments, 3rd Floor, 1140, Sadashiv Peth,
Tel: 020 - 2437 1445 / 2437 6601 | Email: drytechengineers@eth.net | Web: www.drytechengineers.com Next to Geeta Dharma Mandal, Pune 411030
Mob: 98220 58801 | Email: rajivnatu.rn@gmail.com
72 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

Interview
Vishal Terkar, CEO, BTW Visa Services

End All your Visa and Travel Worries


with BTW Visa Services
Emerging as one of the best visa service assistance providers in India, BTW Visa
Services has carved a niche for itself in the visa and travel services. The Pune-based
venture, floated by young and dynamic first generation entrepreneurs Shri. Deep
Bhong and Shri. Vishal Terkar, has clocked a figure of processing over 1 lakh visa
applications in a short span of 6 years. Interacting with Industrial Product Review
(IPR) magazine, Vishal Terkar, Chief Executive Officer (CEO) of BTW Visa Services
talks about companys journey, key services and core competencies. Excerpts.

provide wholesome visa and complete for some least visited and non-VFS
NIRANJAN MEDHEKAR travel services. As the core objective affiliated countries.
Assistant Editor, IPR was to provide visa services to all, Deep
info@medianext.in decided to aptly name it BTW which Q. Can you name some such infrequent
is an acronym of Business, Tourist and countries?
Work Permit visas. Getting a visa done
for any of these purposes from Pune was A. We processed visas for Azerbaijan, Iran,
not that easy till a decade ago. Students, Iraq, Saudi Arabia, Algeria, Nigeria, Malawi,
businesspersons as well as tourists had to Tanzania, Namibia, Bahamas, Zimbabwe,
rush to Mumbai, Delhi or Chennai for visa Greenland, Romania to name a few. Most
processing. of the time business deals and trade
However, things changed drastically opportunities are the purposes of seeking
after VFS Global opened its center visas for these countries.
Deep Bhong Vishal Terkar in Pune around 2003-04. VFS Global
Founder & MD CEO is an outsourcing and technology Q. What kind of clientele you handle?
services specialist for governments and
Q. Six years and 1,00,000 visas, that is diplomatic missions worldwide. Pune A. BTWs clientele includes corporate,
almost 50 visas a day! Congratulations being an industrial, IT and education business associates, travel agents and
on this great feat! How does it all hub, we sensed an opportunity in walk-in customers. In Pune itself, we have
started? providing reliable visa and travel services. over 250 corporate clients. Apart from this,
We owe all our success to our esteemed over 340 travel companies and agents rely
A. Thank you for your kind words. It clients and customers. Thats the reason on us for visa assistance. To cater to the
all started in 2011 with Shri. Deep why we were able to successfully ever-increasing demand from the industrial
Bhong as a single table company. process over 1 lakh visa applications in sector, we decided to have our presence in
Deeps entrepreneurial efforts a short span of six years. This has also Pimpri two years after the launch of BTW
blended with my vision of corporate helped us to establish a good rapport in 2011. The expansion spree continued,
expansion resulted in forming a with VFS. Apart from processing visa followed by opening a branch each in
dedicated team of more than 80 applications for frequently visited Mumbai and Ahmedabad in 2016.
highly capable employees aiming to countries, we have also processed visas
INDUSTRIAL PRODUCT REVIEW 73
www.iprmagazine.com | April 2017

PHOTO: ADOBE STOCK


Q. You mentioned that demand from visas. Corporates do understand the
industrial sector encouraged you to BTW: A travel implant importance of timely visa processing.
have a branch in Pimpri. This industrial facilitator
belt has a large chunk of German, One-stop travel solution Q. Besides visa assistance, what are your
Swiss and US-based industries. Do you
Visa facilitation and consultation other key services that ensure one-stop
have any association with the industry services travel solution?
confederations which help in facilitating Best deals on travel within India
visa and travel formalities? and overseas A. We have specialized air ticketing team
Domestic and International holiday and have tie-ups with almost all major
A. Yes, we are a member of Indo-German packages international and domestic carriers. Our
Chamber of Commerce. We do get Overseas travel insurance sister concern, Journey Cart Holidays,
many clients through this channel. Attestation and apostille service caters to both domestic and international
Besides this, we also have tie up with tours, wherein we arrange tailor-made
some multinationals that facilitate Indian Facilitator and consolidates all travel packages to almost all countries across the
companies in setting up their plants needs at one single place. To ensure globe. We also organize special escorted
abroad. BTW takes care of the entire visa hassle-free documentation to the client, coach tours and rail bookings apart from
processing for these companies. we provide pick-up and drop facility Eurail, Japan Rail, China Rail, Amtrak, VIA
for collecting documents and carry out Rail besides Cruise and hotel bookings.
Q. Why should a corporate company entire travel formalities. We also offer We also render service of attestation
engage BTW for their visa and travel needs? rate discounts and less service charges and Apostille, which is required while
to corporates through a special tie-up. processing business and work visa.
A. BTW is not just a travel agency. It BTW operates 24 by 7 for 365 days that
plays the crucial role of a Travel Implant rule out any delays while processing

BTW Visa Services


Pune: 33/15, Prashant Bungalow, Opp. Abasaheb Garware College, Karve Road, Pune 411004 | Tel: 020-4902 7000, 2545 0504
Pimpri: B/17, Mahalaxmi Heights, Behind Pimpri Central Mall, Morvadi, Pimpri, Pune 411018 | Mob: 87930 60504 / 77984 17593
Ahmedabad: F-03,Sahajanand Complex,Near Associate Petrol Pump, C G Road, Ahmedabad, Gujarat - 380006 | Mob: 079403 96163
Email: info@btwvisas.com | Web: www.btwvisas.com
74 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

R&D

Researchers Create Thermally


Conductive, Stretchable Rubber
A team of engineers at Carnegie Mellon University recently created a thermally
conductive and stretchable rubber and successfully paved a way towards the
development of flexible electronics. Thubber, as it is being dubbed, can be defined as a
soft natured material that has microdroplets of liquid metal embedded in deformable
silicon elastomer.

C
armel Majidi and Jonathan Malen
of Carnegie Mellon University have
developed a thermally conductive
rubber material that represents a
breakthrough for creating soft, stretchable
machines and electronics. The findings were
published in Proceedings of the National
Academy of Sciences in February 2017.
The new material, nicknamed thubber,
is an electrically insulating composite that
exhibits an unprecedented combination
25um
of metal-like thermal conductivity and
elasticity similar to soft, biological tissue that A nano-CT scan of thubber,
can stretch over six times its initial length. Navid Kazem (left), Jonathan Malen (center) and Carmel Majidi (right) showing the liquid metal
Our combination of high thermal demonstrate the elasticity of a strip of thubber. microdroplets inside the
conductivity and elasticity is especially rubber material.
critical for rapid heat dissipation in high performance without overheating in using conventional motors or gears.
applications such as wearable computing applications that demand flexibility, such as As the field of flexible electronics grows,
and soft robotics, which require mechanical light up fabrics and iPads that fold into your there will be a greater need for materials
compliance and stretchable functionality, wallet." like ours, said Majidi. We could also see it
said Majidi, an associate professor of The key ingredient in thubber is a used in highly reconfigurable devices that
mechanical engineering. suspension of non-toxic, liquid metal use thermal actuators to undergo shape
Applications could extend to microdroplets. The liquid state allows the changes.
industries like athletic wear and sports metal to deform with the surrounding Majidi and Malen acknowledge the
medicinethink of lighted clothing for rubber at room temperature. When the efforts of lead authors Michael Bartlett,
runners and heated garments for injury rubber is pre-stretched, the droplets form Navid Kazem, and Matthew Powell-Palm
therapy. Advanced manufacturing, energy, elongated pathways that are efficient for in performing this multidisciplinary work.
and transportation are other areas where heat travel. Despite the amount of metal, They also acknowledge funding from the Air
stretchable electronic material could have the material is also electrically insulating. Force, NASA, and the Army Research Office.
an impact. To demonstrate these findings, the
Until now, high power devices have had team mounted an LED light onto a strip Additional Reading:
to be affixed to rigid, inflexible mounts that of the material to create a safety lamp www.pnas.org/cgi/doi/10.1073/pnas.1616377114
were the only technology able to dissipate worn around a joggers leg. The thubber High thermal conductivity in soft elastomers with
heat efficiently," said Malen, an associate dissipated the heat from the LED, which elongated liquid metal inclusions, Proceedings of the
professor of mechanical engineering. "Now, would have otherwise burned the jogger. National Academy of Sciences
we can create stretchable mounts for LED The researchers also created a soft robotic
lights or computer processors that enable fish that swims with a thubber tail, without
INDUSTRIAL PRODUCT REVIEW 75
www.iprmagazine.com | April 2017

Company Prole

Automatic Electric Ltd. (AE):


75 Years of Excellence in Power
System Equipments
E
stablished in 1942, Automatic Electric Ltd. (AE) is a renowned
name in the manufacturing of a wide range of power Salient features of EMS type AC stabilizer
system equipments and electrical measuring instruments. Nil waveform distortion
AE is headed by a professional team that has core competence Achieves 98 - 99% efficiency
in manufacturing, designing and development of electrical Speed of correction up to 70 v/sec.
equipments considering ever-changing industrial needs. Response time of less than 20 m/
The companys strength lies in its manufacturing and strong sec.
distribution network that spans across India and globe. The ISO Immune to load pf and supply
9001 accredited company is headquartered in Mumbai and has frequency variations
two manufacturing units across Maharashtra. Maximum 2 % power loss
Continuous duty cycle
Key products Life expectancy of 20 to 25 years
Electrical measuring instruments (Analog / Digital) Easy for maintenance (with plug-in
Voltmeters, ammeters, frequency meters, power factor meters, PCBs)
power meters, electrical transducers, multi-function meters, AC Considerable short time overload
energy eeters, DC energy meters, portable instruments upto class capacity
0.5, energy audit kit (EMS 9000) etc. Configurable output voltage settings
Auto or manual mode of operations
Power system equipments LED indicators for high or low input voltage
Various types of rectifiers up to 10000A, servo voltage
stabilizers upto 3500 kVA, current injection test units, dimmer stat,
ultra-isolation and lighting transformers. The voltage stabilizers are meant to take care of this problem and
protect these sophisticated modern equipments. They ensure
Instrument transformer division longer life of the equipments and at the same time drastically cut
High voltage testers up to 300 kV, tape wound, resin cast down electricity consumption. Thus, they play a dual role one of
round/rectangular CT/PT, resin cast CT/PT from 3.3 kV to 33 kV, oil protecting the equipments and another of saving the energy.
cooled CT/PT from 3.3 kV up to 132 kV etc.
The EMS type AC voltage stabilizer comprises
AC voltage stabilizer (Capacity upto 3500 kVA) Dimmer stat (Continuously variable voltage auto transformer)
Servo-controlled automatic AC voltage stabilizers made by Buck - boost transformer (Optional upto 5 kVA 1 Ph / 15 kVA
AE are of electro-mechanical (EMS) type. The purpose of voltage 3 Ph)
stabilizer is to receive a fluctuating AC voltage of large amplitude AC step-synchronous motor
and deliver almost constant voltage, which remains within a Solid state electronic control circuit
very narrow band (+1 / -1 %) of the nominal voltage. The voltage Two switching triacs
variations, which are unavoidable in current power supply system, MOVs for surge suppression
cause havoc in modern equipments, which often are very complex.

Prashant Phulgirkar, Asst. General Manager (Marketing),


Automatic Electric Ltd.
Agarkar Bhuvan, Lal Bahadur Shastri Marg, Pune 411030
Tel: 020 -2433 6372 / 2835 | Mobile: 93200 93027 / 99229 01835 / 77180 93027 | Email: ppp@aelindia.com | Web: www.aelindia.com
76 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

Company Prole

Fortune Solar Energy:


Concept and Benefits of Rooftop Solar System
Energy Saving Company
About Fortune Solar
Energy: Fortune is
35 years old. Fortune
had its two streams.
First was Computer
Hardware and since 2004
Fortune is completely
concentrating on Energy
Pradeep Namjoshi
saving products. We
Director
conceptually teach you
how to really make the use of renewable
energy in our day to day life.
Solar Water Heating: Fortune Solar is a
respected supplier, Installer and machinery
supplier for Solar Water heating systems used
in residential and commercial applications.
Single line diagram of rooftop solar facility for net metering interconnection
Pioneer in introduction of Evacuated tube
collectors Technology in India which is now
the de-facto standard fitment for Solar water through Ministry of Renewable Energy A 1 Kwp installation generates more than
heating systems due to ease of installation, (MNRE) and implemented in several 1370 to 1460 units of electrical energy
maintenance and better efficiency with cost states Such as Gujarat, Karnataka, Kerala, per year.
effectiveness over the flat plate collectors. Maharashtra etc.
LED light: Salutation for home, bungalows, Rooftop for residences, commercial Financial & other Benefits:
residential societies, commercial Buildings, establishments and Industry are used to 40 % accelerated depreciation on
Industries and show-rooms and many other mount PV Panels which convert Sunlight investment in first year for commercial &
application for indoor & outdoor lighting. radiation into Direct Current. The DC is industrial users.
Rooftop Solar PV / Net Metering: Now converted to AC & synchronised with Payback on investment within 4 years
entered the Roof Top Solar PV supply and the mains Grid (MSEB) system. Electricity (100Kwp plant Industrial/commercial) with
installation market with a dedicated team, generated is fed directly to the mains continued generation for next 15 to 20
qualified engineers, distribution network (MSEB) and is used by the consumer to years.
for sales & service. A sample demo 3KW PV meet his electrical requirement., Excess The investment earns a high IRR in excess
system with Net metering has been installed generation is deposited / fed back to the of 25 % making it a highly profitable
at Fortune House in Sahakar Nagar in Pune. Grid (MSEB) investment.
Any time anyone is welcomed to see the plant An agreement is done with Discom utility Insurance against increasing electricity rates
with prior appointment. company (MSEB) for 20 years and a NET as Discoms try to return to profitability.
Meter is installed which keeps track of A 100 Kwp PV plant generates @ 135 Mwh
Concept of Rooftop Solar PV the consumption and deposit of energy. units reduction of over 100 tons of CO2
Consumer pays for net consumption only emissions.
system with Net metering: reducing electricity bills and earning for
Prompted by Central Government any excess energy supplied.

Fortune Solar Energy


272, Fortune House, Pratap Co-op Housing Society, Sahakar Nagar No. 2, Pune 411009
Tel: 020 -24221843 / 24220833 | Mob: 94223 24202 | Email: fortune5558@gmail.com | Web: www.solarfortune.in
INDUSTRIAL PRODUCT REVIEW 77
www.iprmagazine.com | April 2017

Cloud ERP

Benefits of Cloud ERP for SMEs


Over the last two years, there has been a lot of buzz about Cloud Computing. In this article,
we will examine how Cloud Computing technologies are a paradigm shift in the way Internet
can be used and how it will help SMEs address some of the issues related to adoption of
Information Technologies.

SHREESH VAKIL

PHOTO: ADOBE STOCK


consideration can now be applied to
Founder and CTO, OfficeBOX enterprise software like ERP systems.
One aspect that holds back many
shreesh.vakil@officebox.co.in Indian SMEs from adopting a fully
integrated ERP solution and instead

S
everal surveys have concluded continues to use popular accounting
that adoption of IT products in software is the build versus buy dilemma.
Indian SMEs is significantly lower as Many enterprises believe that they
compared to their western counterparts. have unique requirements and attempt
Following are some of the reasons for this to use customized software to fulfil
situation: their requirements. However, this can
Non IT enterprises find it hard to hire be a very torturous experience. Custom
and retain capable IT manpower to software development is expensive, time
manage their infrastructure consuming and a diligent activity. Both
IT infrastructure (both hardware and the software developer and the enterprise
software) is perceived to be expensive have to commit substantial resources in
Lack of considering IT infrastructure terms of time and people to make this a
as strategic to enterprise growth and Benefits of OfficeBox success.
success No infrastructure cost A right strategy for SMEs would be to
Relatively lower skill level and Affordable evaluate a Cloud ERP product and start
proficiency of staff in using IT systems Access from multiple business by adopting the product as-it-is rather
Cloud computing, offers elegant locations and on the go than focus too much on customization.
solutions for issues listed above. One No cost of infrastructure This will reduce the cost of acquisition
of the most important benefit of Cloud maintenance and speed up deployment and adoption.
computing is that it eliminates the need Extremely secure environment Once the system is in use, it can then be
for an enterprise to create and maintain refined and fine-tuned incrementally as
its IT infrastructure (both hardware and for hiring IT staff for managing the you go.
software). infrastructure (often a non-core activity for At OfficeBOXTM, we have been
Using the Infrastructure as a Service the enterprise). pursuing this philosophy for enabling
(IaaS) offerings in Cloud, enterprises can Software as a Service (SaaS) offerings Indian SMEs adopt Cloud ERP as a
rent infrastructure for their requirements. from CSPs provide a hassle free option strategic infrastructure for their growth
The Cloud Service Provider (CSP) take to procure enterprise software. These and success. We have built a sophisticated
care of managing the infrastructure days, it is far cheaper and cost effective to configurable Cloud ERP product that can
and maintaining its uptime as per the use hosted email service providers (like be useful to a wide ranging businesses
Service Level Agreement (SLA). The Google, Microsoft etc.) instead of setting like C&F, retail and manufacturing.
user enterprise is relieved of the need up own corporate email servers. The same

OfficeBox Software Pvt. Ltd.


45B, Induraman, Hill Road, Gokulpeth, Nagpur 440010
Tel: 0712 2533940 | Mob: 98813 19174 | Web: www.officebox.in
78 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

News

Economy will grow 7.2% in FY17, 7.7%


in FY18: Finance Minister Arun Jaitley
U nion Finance Minister Arun Jaitley recently
said the Indian economy will grow 7.2 per
cent in the financial year 2017 and 7.7 per cent
in 2018.
He further added that, The country needs
$646 billion over next few years to finance
infrastructure development. The global growth
is showing positive sign and moving upwards
and is expected to improve further in 2017-18. Emerging market
economies are facing new challenges like protectionism and
PM Narendra Modi increased geopolitical tension, he added.

lauds GST, says


New Year, New
Law, New India India ready for tough negotiations
at WTO, says Commerce Minister
Nirmala Sitharaman
I
ndia moved a step closer for rolling out the
countrys biggest tax reform after the Lok Sabha
passed four bills required to implement the GST
(Goods and Services Tax) in last week of March.
The four bills Central GST, Integrated GST,
I ndia is preparing for tough negotiations at
the WTO for the proposed trade facilitation
agreement (TFA) in services, said Commerce
Union Territories GST and GST Compensation bills and Industry Minister Nirmala Sitharaman, at
were passed one by one through voice vote after a recent meeting in New Delhi. Lessons learnt
almost nine hours of intense debate. from negotiations on the trade facilitation
The CGST and IGST bills will enable the Centre pact in goods would play a crucial role in the
to levy and collect taxes across the country. services pacts success, she further added.
The Goods and Services Tax (Compensation We find that the countries that are driving the services
to States) provides for compensation to the states industry and those with inputs from knowledge based spectrum
for the loss of revenue arising on account of are not willing to support a TFA in services, Smt. Sitharaman said
implementation of the GST. The Union Territory while addressing a workshop on TFA in services organised by the
Goods and Services Tax Bill, 2017, will enable levy Commerce Ministry and the World Bank in New Delhi in the last
and collection of tax on intra-state supply of goods week of March.
and services or both by the union territories. Argentina, Brazil and Turkey came out in support of the
The Prime Minster Narendra Modi congratulated proposal. I hope it will not take too long because the disillusion
Indians on passage of GST bills by saying New Year, that multilateral institutions are delivering slowly cannot be
New Law, New India. He was referring to the new afforded any longer in the political reality of the globe today, Smt.
financial year which started on April 1, 2017. Sitharaman said.
All four bills were subsequently passed without
any amendment in the upper house Rajya Sabha in
the ongoing session.
INDUSTRIAL PRODUCT REVIEW 79
www.iprmagazine.com | April 2017

Company Prole

Asian Academy of Professional Training:


Carving Skilled Manpower for Industry

T
he dearth of
skilled manpower
at the entry level
and keeping working
professionals abreast
with new trends pose
a big challenge to
the industry today.
Milind R. Joshi
Founder Asian Academy of
Professional Training
(AAPT), a Pune-based training institute has
been effectively dealing on these fronts AAPT has also developed wide-
since last eight years. Established by a Courses run by AAPT: ranging vocational training courses for
renowned academician Milind R. Joshi, till Piping Design Engineering and fresh engineering graduates and diploma
date 9,000 plus engineers and technicians Construction holders catering to several technical
are trained and got employed in various Boiler and Plant Equipment Design streams. These courses run on weekends
industries under his guidance in the last and Engineering and/or fulltime basis and eligible
24 years. Industrial Water and Wastewater candidates can pursue these courses as
In his 25-year stint as academician, Treatment per their convenience.
Shri. Joshi was associated with reputed A recent employability focused study
Process Engineering and
engineering colleges in Pune viz. carried out by a Delhi-based employment
Simulation
Vishwakarma Institute of Technology (VIT) solutions company made a disturbing
Construction Management
and Maharashtra Institute of Technology revelation that around 1.5 million
(MIT) as an Associated Professor. In 1994, Inspection Technology engineers are released in the job market
he developed the first vocational training Electrical Instrumentation and every year by engineering colleges in
course for engineering students in oil and Industrial Automation India, barely 7 percent suitable for core
gas industry namely Piping Designing and Personalised PDMS Training engineering jobs. All the post graduate
Engineering while he was working with diploma courses developed by the
MIT. This course had immensely helped Banking on its strong academic base AAPT are approved by TCIL-IT Education,
students to grab job opportunities in the and ample industrial exposure, AAPT a Government of India enterprise
petroleum sector, which motivated him carved a niche and emerged as one of under Ministry of Communication and
to come with several such courses and the top training institutes in India. Several Information Technology. AAPT has now set
train students while they are still in college. conglomerates and MNCs like Reliance an aim of emerging one-of-its-kind biggest
That was how he carved another couple Industries, Bharat Petroleum, Hindustan industrial training development institute
of courses namely Boiler and Process Petroleum, Qatar Petroleum, Larsen and across Asian and Middle East countries by
Equipment Design and Engineering Toubro (L & T) prefer AAPT while arranging 2020.
and Industrial Water and Waste Water industrial training programmes in India
Treatment during his association with VIT. and overseas for their workforce.

Asian Academy of Professional Training


Office No. 74 to 79, 5th floor, A-Wing, K.K. Market, Dhankawadi, Pune-Satara Road, Pune - 411043
Tel: 020 -2436 1091 / 99 / 6500 3400 / 6500 3600 | Email: mrjoshi.piping@yahoo.com | Web: www.asianacademy.org.in
80 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

Beyond Factory Walls

Healthy Activities
for your Entire Family
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INDUSTRIAL PRODUCT REVIEW 81
www.iprmagazine.com | April 2017

In today's hectic life, families are


spending less time together and
even less time enjoying wholesome
activities. This article describes six
healthy activities that everyone in the
family will enjoy. More importantly,
these activities induce individual
wellness and opportunity for
conversation.

M
any families struggle to find activities that appease
everyone and it is often more difficult to find activities
that also offer health benefits. Consider the following
six enjoyable and healthy activities for the whole family:

Volunteering
A healthy mind and spirit contribute to wellness.
Volunteering naturally induces a healthy state of mind
since one is helping others. Examples of volunteering
as a family include serving meals at a local homeless shelter,
shopping for gifts to give to a less-fortunate family during the
holiday season, running a marathon for a worthy cause or simply
dedicating free time for social activities. Subscribe to IPR
Presenting most-engaging content ever for industries
Golfing
Golfing is a sport for amateurs and connoisseurs alike;
one does not need to be an aspiring Tiger Woods to
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enjoy the game. That said, any family can spend the
day on the green while basking in the sun and getting a
full-body workout. Equally gratifying is the opportunity for
conversation and building rapport.

Biking
Bicycles are built to suit people of all ages and sizes.
Therefore, biking can be an enjoyable activity for the
entire family. This sport that can be customized to be
as relaxed or arduous as one desires. Families can undertake a
simple bike route with no inclines or they can test their strength
by choosing a route with plenty of hills and valleys.

Hiking
Similar to biking, hiking is a sport that can be
customized to alit the physical abilities of the family.
Consider hiking small hills for beginners or try to
conquer steep mountainous trails for trained experts.
Additionally, families can set monthly goals, which chart trails
that become progressively more strenuous.
INDUSTRIAL PRODUCT REVIEW 82 INDUSTRIAL PRODUCT REVIEW
www.iprmagazine.com | April 2017

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Email: sales@iprmagazine.com | Web: www.iprmagazine.com Often described as meditation in motion, Tai
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Swimming
Although this sport requires skill and ability, young
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Ultimately, families have many options when choosing
Terms and conditions: healthy activities to take part in, but choosing one that
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