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Inaugural
Issue
INDUSTRIAL
PRODUCT
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REVIEW
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
www.iprmagazine.com | April 2017
NEW-AGE INDUSTRIAL MONTHLY
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
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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
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
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.
Case Study
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
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. )
COVER STORY
From Fringe
to Global (Part - 1)
PHOTO: SHUTTERSTOCK
INDUSTRIAL PRODUCT REVIEW 13
www.iprmagazine.com | April 2017
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
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
www.iprmagazine.com | April 2017
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
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
www.iprmagazine.com | April 2017
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$-
All Automotive Auto Exporters Auto Non-exporters
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
www.iprmagazine.com | April 2017
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
www.iprmagazine.com | April 2017
Figure 4: Share of firms with capacity utilization greater than 75% (India, China)
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.
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) %
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%
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,
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
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.
Interview
Dr. Jitendra Joshi, Chairman, Abhi Group of Companies
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
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
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
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
Company Prole
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.
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
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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).
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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
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improved performance in titanium machining. All electrical compartments are sealed against
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three times the bending moment resistant added corrosion resistance and the capability to
capacity compared to traditional tool systems. withstand high-pressure steam washing. The 700
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centers to use increased speeds and feeds in kg, while the longer reach 900 mm variant can
difficult machining applications. It can also be carry up to 5 kg of payload. The IRB 1200 is also
retrofitted into any existing machine tool. available with clean room protection.
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stablished in 1984, We manufacture O rings, bushes, trouble free
by late Shri. V. L. gaskets, grommets, washers, buffers, metal rubber parts
P. Sawkar, M/s bonded rubber parts in polymers like with price
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automobile industry, automobile, electronic, paper, oil engines quotation.
electronic and electrical and diesel engines, pump industry, Shri. Kedar
Late V.L.P. SAWKAR
industry, mechanical packaging, machine industry, filter industry, and Shri. Samir Sawkar are looking after this
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industry, dairy, food and defense, transformer industry, food and firm. We never say that we are best, but we
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Research Article
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.
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
www.iprmagazine.com | April 2017
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
www.iprmagazine.com | April 2017
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.
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
www.iprmagazine.com | April 2017
4 5
Interval
3
2
1
3 6 9 12 15 18 21 24 27
Cumulative demand
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
www.iprmagazine.com | April 2017
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
www.iprmagazine.com | April 2017
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.
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
www.iprmagazine.com | April 2017
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
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>.
ERP
PHOTO: ADOBE STOCK
Manufacturing Sector
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.
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.
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
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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
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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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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
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
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
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.
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
Legal Aspect
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
www.iprmagazine.com | April 2017
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
www.iprmagazine.com | April 2017
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
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
Interview
Vishal Terkar, CEO, BTW Visa Services
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
R&D
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
Company Prole
Cloud ERP
SHREESH VAKIL
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
News
Company Prole
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.
Healthy Activities
for your Entire Family
PHOTO: ADOBE STOCK
INDUSTRIAL PRODUCT REVIEW 81
www.iprmagazine.com | April 2017
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
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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.
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www.iprmagazine.com | April 2017