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FOCUS Composite machining P. 50

SPECIAL FEATURE Design of experiments P. 88EM - InterviewPaul RicardPresident, DP Technology Corp (p. 34)

VOL 06 | MAY 2015

EF F IC I ENT MA NUFA CTUR ING

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The quiet revolution for IndiaIndustry 4.0

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Cover Inside MITUTOYO.pdf 5/15/2015 7:24:58 PM

RELIABILITY. PRICE. REPUTATION.

WE KNOW what its like. Were MACHINISTS, too.

We CUT METAL every day.

= TOTAL CUSTOMER VALUE.

Thats why were driven to make sure that every Haas CNC machine is trustworthy, affordable, and always backed by the industrys best after-sale service.

Haas Factory Outlet | www.HaasCNC.comSales: Ahmedabad: 079-32405007, Bangalore: 080-41179452/53, Chennai: 044-65156052, Coimbatore: 0422-2413924 Delhi: 0124-4367619, Kolhapur: 0231-2677979, Mumbai: 022-39136041, Pune: 020-32935433

Service: North: 09312550550, West (Guj) and Central: 09376150150 West (Mah) and East: 09325150150, South: 080-41179452/53

Haas VF-2SS Super Speed Vertical Machining Center

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ED ITOR IAL

As the Indian government struggles to maintain investor confidence, FDI in India has surged by 56% in five months since the Make in India programme was launched in September 2014, according to official data. The inflow into the manufacturing sector alone saw a jump of 45%.

The recent Hannover Fair held in Germany was a classic example where every investor was excited and wanted to know more about the campaign to plan their investment in India accordingly. India was the Partner Country for this years Hannover Fair, where the Make in India movement took a global dimension and also paved the path for several new investment avenues and stronger economic engagement with India. Interestingly enough, Indian companies had more visible and therefore prominent presence at the exhibition, with a noticeable participation from a few SMEs.

But it was as much a time to introspect as it was to get our backs pat. Although the Indian manufacturing industry has a great potential, considering the current business optimism in the industry, its success will depend upon how soon the reforms will be in place from the government side and how fast the industry responds to the global technology developments. Its time for the industry to come forward and invest in R&D, innovations and new product development so as to build a brand India, vis--vis the

`Make in India movement.

Shekhar Jitkar Publisher & Chief [email protected]

Building a brand India

7

Its time for the industry to come forward and invest in R&D, innovations and new product development so as to build a brand India, vis--vis the `Make in India movement

XXEditorial-NN-JJJJ

EDITORIAL ADVISORY BOARD

Sonali KulkarniPresident & CEOFanuc India

Dr Wilfried AulburManaging PartnerRoland Berger Strategy Consultant

Vivek SharmaManaging DirectorYamazaki Mazak India

N K DhandCMDMicromatic Grinding Technologies

Dr K Subramanian President, STIMS Institute, USATraining Advisor, IMTMA

S RavishankarManaging DirectorWalter Tools India

Raghavendra RaoVice PresidentManufacturing & Process ConsultingFrost & Sullivan

Dr P N RaoProfessor of Manufacturing TechnologyDepartment of TechnologyUniversity of Northern Iowa, USA

Satish GodboleVice President, Motion Control DivSiemens Ltd

Vineet SethManaging DirectorIndia & Middle EastDelcam Plc

Overseas Partner:

China, Taiwan, Hong Kong & South-East Asia

EM | Ma y 2015

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8 EM | Fe b 2015

CONTE N T S

Market Management

10 NEWS

16 WE ARE IMPLEMENTING SMART PLANT

CONCEPTS

Interview with Claire Kuo, Chairman & CEO, SEYI Taiwan

MARKET TRENDS

20 CREATING JOBS WITH MAKE IN INDIA

The article discusses the substantial impact of Make in India campaign on job creation in the country

Focus

Technology

34 WE WANT TO PARTNER WITH THE INDIAN

MACHINE TOOL INDUSTRY

Interview with Paul Ricard, President, DP Technology Corp

ROUND-TABLE

38 BUILDING MISSION-DRIVEN MACHINES

The feature discusses on the need of a PLM software to improve productivity of NPD process for consistent product quality & minimised lifecycle costs

MANAGEMENT STRATEGIES

44 IMPACT OF B2C EXPERIENCES ON B2B

CUSTOMERS

The article details on the tools that will design & execute superior experiences, while addressing challenges faced by organisations to implement effective business strategies

Composite machining

50 PRODUCING ECONOMICALLY ATTRACTIVE

COMPOSITE COMPONENTS

The article deals with how carbon composites are becoming more competitive & cost effective across industries

Cover Story26 THE QUIET REVOLUTION FOR INDIA

A read into how Industry 4.0 shows substantial improvement in Indian manufacturing application

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POWER PRESSES

56 Enabling proficient trouble-shooting

The article discusses the different press elements, their function, accuracy parameters, as well as checking & preventive maintenance for efficient trouble-shooting

content May 2015.indd 8 5/15/2015 4:51:00 PMFORM-1.indd 14 5/15/2015 7:17:07 PM

9EM | Fe b 2015

CONTENTS

Technology

New Products

100 Drilling tools for titanium & stainless steel; Vertical turning machine for small chucked components; Ring Saw with two head design; Hybrid linear bearings

101 Sealless compact pumps; Universal hydraulic chuck; Eddy current displacement sensors; High-speed CNC CMM

102 Miniature sensors for space constrained applications; Precision blanking and sheet metal forming press; Quick jaw change system; PCBN insert grade for rough machining

Columns

07 Editorial 08 Contents 104 Highlights Next issue 104 Company index

INDUSTRIAL PARTS CLEANING

60 Ensuring quality with optimised use of resources

The article highlights a new methodology model to make the Design of Experiments (DOE) easy

WELDING

64 Investing in welding system A read on the advantages of investing

in a welding system and the benefits such systems offer for overall productivity

MANUFCATURING IT

68 Embracing faster innovation to adapt to new realities

The article highlights the emerging trends in the automotive industry that are causing a fundamental change in vehicle technology

72 Optimising induction heating An application story on how Tata Steel

is using COMSOL Multiphysics simulation to optimise induction heating

COOLANTS & LUBRICANTS

76 Analysing bio-resistance system The article details on the methods of

monitoring concentration that leads to higher customer satisfaction

Cover image courtesy: Hannover MesseINDUSTRIAL BEARINGS

80 A steely resolve The article focusses on how SKFs

condition monitoring system used by ArcelorMittal Bremen GmbH helps to optimise production & simultaneously maintenance costs

MACHINING

84 Making competitive shopfloor A read on the investments made by

GAT on Haas CNC machine tools for making efficient shopfloor run by well-trained operators

SPECIAL FEATURE

88 Emphasising statistical approach The article highlights a new

methodology model to make easier the implementation of Design of Experiments (DoE)

COUNTRY FOCUS: USA

94 Demand on solid ground A read into the current performance of

the machine tool industry of USA

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10 EM | Ma y 2015

MARKET | NEWS

Rockwell Automation with over $6.62 billion dedicated to industrial

automation & information has further expanded its global footprint in India,

China & South-East Asia. On the backdrop of hosting Indias largest

Automation Event, the company recently

announced its partnership with Microsoft &

Cisco for joint solution development &

integrated solutions & services. These

collaborative efforts shall result in better

asset optimisation and broader risk

management for industrial companies. Dilip

Sawhney, MD, Rockwell Automation India,

said, Increasing awareness of automation

benefits in manufacturing shows scope for

automation in manufacturing as the industry is realising the vast benefits

of automation. In the light of Make in India, manufacturing will get a

boost, thus, giving scope to more adoption of automation in manufacturing

for industry to remain competitive also. RAOTM (Rockwell Automation On

the Move) is an annual event that brings together the best and brightest

thinkers, practitioners, and innovators from business & academia to

accelerate the market adoption.

Ford Motor companys Indian

arm inaugurated its second

factory in Sanand, Gujarat.

According to the company, it

had planned to establish India

as an export hub. Also, it

wanted to triple its exports

from here over five years.

Anurag Mehrotra, Executive

DirectorMarketing, Sales &

Service, Ford India, said, Half

of the combined production

from their Sanand and Chennai

units would be for export. Nigel Harris, President, Ford India, said, The

Figo Aspire would be launched in the second half of the year. The initial

production would be for the domestic market and the company would

eventually focus on exporting the model. The body shop is 95% automated

and the paint shop almost fully. There are 125 stations along the production

line that have been set up for quality checks. There were more than 437

robots at the facility, added Mehrotra.

Klingelnberg GmbH has joined hands with Sandvik Coromant for the basic

research & development of modern production concepts. Their latest

project is a new tool concept for the Klingelnberg Zyklo-Palloid gear

cutting process, designed to establish dry

processing with carbide indexable insertscin this

process as well. Through intensive development

work, they will join forces to offer customers end-

to-end solutions, which take into account and

optimise the complete machine, comprising the

machine, setting, cutting parameters and tool

solution. Our goal is to realise innovative

modifications, to enable our customers to

manufacture their products with maximum flexibility,

shorter processing times and lower process costs,

explained Dr Tim Sadek, HeadTool Machines

product line, Klingelnberg. To accomplish this, both

companies are blazing new trails in a joint effort. Together with Sandvik

Coromant, Klingelnberg has been at work developing a modern tool concept

for the Klingelnberg Zyklo-Palloid gear cutting process, which will replace

the proven system based on high speed steel materials.

Sumit Mazumder, Chairman & MD, TIL Limited, has been elected as the

President of CII for 2015-16. He succeeds Ajay

Shriram as the new President. TIL is the

manufacturer of Indias largest range of material

handling equipment in technical collaboration with

Manitowoc Crane Group, USA; Hyster (a part of

NACCO Materials Handling Group, USA); Astec

Industries, USA; Paceco Corp, USA (a part of Mitsui

Engineering and Shipbuilding, Japan) and Mitsui

Miike Machinery Co, Japan (a part of Mitsui Group).

Mazumder is also the Executive Chairman of TIPL

(Tractors India).The company is a distributor for

Caterpillar, USA, in India, Nepal and Bhutan for

earthmoving, construction, mining equipment and

power systems. Dr Naushad Forbes, Director,

Forbes Marshall, has become the President-designate of CII for 2015-16. It

is Indias leading steam engineering and control instrumentation firm. He

chairs the steam engineering companies within the group. Shobana

Kamineni, Executive Vice-Chairperson, Apollo Hospitals Enterprises Limited

(AHEL), has been elected as Vice-President of CII for the year 2015-16.

Their latest project is a

new tool concept for the

Klingelnberg Zyklo-Palloid

gear cutting process

Sumit Mazumder,

Chairman & MD, TIL

Limited, is elected as

the President of CII

The collaborative efforts shall result

in better asset optimisation

The initial production would be for the

domestic market

Klingelberg partners with Sandvik Coromant

New management for CII

Rockwell Automation partners with Cisco

Ford opens Sanand plant

> MORE@CLICK EM01633 | www.efficientmanufacturing.in




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12 EM | Ma y 2015

MARKET | NEWS

Frost & Sullivan announces the launch of IMEA

Frost & Sullivan recently announced the launch of its 12th edition of India

Manufacturing Excellence Awards (IMEA). The awards assessment process

brings out the consonance of strategic goals toward business growth, their

derivative organisational objectives towards enhanced competitiveness

and the facilitys operational performance towards manufacturing

effectiveness. This is based on the global excellence model, which captures

the facilitys operational performance across 12 parameters and business

results across three parameters.

Speaking on the occasion,

Raghavendra Rao, Senior VP,

Frost & Sullivan, said, With the

Government of India taking

significant steps to boost the

countrys industrial sector,

companies are eyeing and

preparing themselves for

opportunities that the next big revolution is expected to bring. The Make in

India program is both exciting and challenging and forward-looking

companies are expected to make the most out it. IMEA has been a pragmatic

approach toward identifying opportunities for improvement within the

organisation.

The best facility in each industry sector shall be presented with the Future

Ready Factory of the Year award. The facility that has proven to be the best

across all industry verticals shall be presented with The Indian Manufacturer

of the Year award. In addition, the super achievers this year shall also be

recognised at the growth, innovation & leadership banquet, a flagship event

of the company.

Also, there will be an opportunity for senior level executives to be a part of

the worlds foremost member-driven, global business leadership network

The Manufacturing Leadership

Council (MLC). Besides engaging

with and being a part of global

thought leaders and sharing

opinions, the MLC provides

international plant visits,

interactive collaboration zones

with industry peers and premium

access to Executive Insight Webinars Research.

It is a day-long event that serves as a platform for discussion and active

industry interaction on industry relevant issues, and sharing of identified

best practices.


Gleason Corporation opens new facility in Bengalaru

Gleason Corporation recently announced that it has broken ground for a

new manufacturing facility in the Bengaluru Aerospace Park Industrial Area.

John J Perrotti, President & CEO, Gleason Corporation, said, We continue

our belief that the Indian market offers

significant near-term & long-term growth

opportunities, and we are pleased to

take the next step to position Gleason to

better serve the Indian market. The

facility will produce a wide range of

products & services for aerospace

customers and markets including

automotive, heavy truck, construction,

agricultural equipment and energy.

Phase 1 of the new Gleason works India

facility is planned for completion in the

second half of 2016, and includes 50,000 sq feet space for manufacturing,

sales, service and administration. The facility will continue the manufacture

of Gleason Genesis gear hobbing machines, gear cutting tools, workholding

equipment, and aftermarket products and services, and will provide the

space needed for continued expansion for other products.


Renishaw bags Queens Award for Enterprise

Renishaw was recently felicitated with the Queens Award for Enterprise

2015 in the innovation category for the development & manufacture of its

RESOLUTE family of non-contact, optical

position feedback devices. It enables a step

change in the performance of motion control

systems, used in manufacturing and other

environments. It can determine position to a

resolution of one nanometre (one billionth of a

metre) with motion speeds of up to 100 metres

per second for linear position applications, and is

capable of 32-bit resolution at up to 36,000 RPM

for rotary (angle) applications. It determines

position immediately at switch-on and is

compatible with a range of open and proprietary

serial protocols including Siemens DRIVE-CLIQ,

BiSS, FANUC, Mitsubishi and Panasonic. RESOLUTE complies with our

years of experience in optics, high speed image processing, system

engineering and precision manufacturing. I am proud of our achievements

to produce a globally successful encoder product that is a world-first in its

field, said David McMurtry, Chairman & Chief Executive, Renishaw.


The encoder system

enables a step change in

the performance of motion

control systems

The facility will produce a wide

range of products & services for

aerospace customers and markets


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14 EM | Ma y 2015

MARKET | NEWS

Visitors witnessing the 20 machines on display and running

demos at HassTec

HaasTec 2015 attracts 3300 visitors to Haas factory

According to reports from Haas Automation, the recent HaasTec open house

attracted nearly 3,300 attendees to the

companys headquarters and manufacturing

facility in Oxnard, California. The 4-day

event drew visitors from around the world,

with attendees from 48 countries, including

China, India, Korea, Latin America, the

Middle East, and many European countries.

More than 330 students attended the

event.

The event included machine demonstrations,

extensive tours of the companys 1 million

sq foot facility, where 38 exhibitor booths

with representatives from major CAD/CAM,

tooling and work holding manufacturers.

There were 20 machines on display and

running demos at HaasTec, including the new UMC-750SS super-speed

universal machining center. Also, there were the ST-55 large-through-bore

turning centre, the new DM-1 drill/mill centre, a wide array of Haas VMCs,

and a Haas horizontal with pallet pool system. A number of Haas rotary

products were also on display, including the new TRT100 high-speed dual-

axis rotary table. With a maximum speed of 1000 per second on both axes,

the TRT100 provides high-speed, accurate,

3+2 positioning for machining small

complex parts.

This was a great event. We are very

appreciative of being given the opportunity

to attend and exhibit. This gave us a great

opportunity to have our customers come

and look at the complete line of Haas

products, as we would like nothing more

than to have our customers buy more Haas

machines!, said Joe Bailey, Sales

Executive, Autodesk.

Overall, we found it to be very productive,

and were able to meet with many existing

customers, prospects, and HFOs. This event

was valuable in that many of the people visiting were actual decision

makers. We spoke with many executives and managers who can actually

spend money, added Bryan Jacobs, Communications Manager

Marketting, CGTech.


Honeywell expands cyber security development capabilities

Honeywell Process Solutions recently announced the opening of the

Industrial Cyber Security Lab to advance its development and testing of

new technologies & software to defend industrial facilities and operations

such as refineries and manufacturing plants from cyber-attacks. According

to the U.S. Department of Homeland

Securitys Industrial Control Systems

Cyber Emergency Response Team

(ICS-CERT), reported cyber incidents

on industrial targets in 2014 continue

to increase and are up more than

25% since 2011.

We will be able to validate new

solutions faster in a variety of

scenarios and increase our customers

defenses against the growing threat

of cyber attacks, said Jeff Zindel, Global Business LeaderCyber Security,

HPS. The new Industrial Cyber Security Lab, located in Duluth, Ga, includes

a model of a complete process control network that the company cyber

security experts will leverage for proprietary research, hands-on training,

and to develop, test & certify industrial cyber security solutions.


KBLs LLC pumps felicitated with India Design Mark

Kirloskar Brothers Limited has recently received national-level recognition

for its LLC Pumps series. KBLs LLC Pumps series has been granted the

prestigious India Design Mark by the

India Design Council. The India Design

Mark is a design standard, a symbol that

recognises a design that is useful and

responsible. It symbolises product

excellence in form, function, quality,

safety, sustainability and innovation and

communicates that the product is usable,

durable, aesthetically appealing while

being socially responsible. Commenting

at the event, Ravindra Birajdar, VP

Corporate Research & Engineering

Development, KBL, said, This award not just recognises our efforts to

make our products more useful, but also motivates us to continue creating

new, innovative & enriching products. Factors such as corrosion and

natural erosion have been considered while designing the LLCTM pumping

system. The objective behind the pumps is to save on additional energy

costs and reduce the degradation cost.


Corrosion & natural erosion have

been considered while designing the

pumping system

The Industrial Cyber Security Lab

defends refineries & manufacturing

plants from cyber-attacks


15EM | Ma y 2015

N E WS | MARKET

A strong 40 member CII CEOs delegation led by Sumit Mazumder, President, CII, participated at the recently held Hannover Messe 2015. 350 Indian companies including the Tata Group, Reliance, Bharat Forge, State Bank of India and the Kirloskar Group showcased their strengths at the fair. CII had set up 3 stalls at the fair to showcase Brand India at the event, highlighting the industrial growth & business opportunities in the country. The delegation conveyed a powerful message for the global manufacturing industry to look at India as a major investment destination.

Towards Indo-Germany trade opportunities

Coinciding with the fair, CII organised the Indo-German Business Summit in collaboration with BDI. The Summit was attended by the CEOs of prominent German companies. Honble Prime Minister of India Narendra Modi and German Chancellor Dr Angela Merkel had addressed the session. The Summit focused on the Make in India campaign, which aims to increase the share of manufacturing in Indias GDP. With much of Germanys economic success being credited to its focus on the manufacturing sector and on producing high technology sophisticated goods, the session generated a strong response. The overall approach towards India was very positive, from not only German companies, but also companies from other parts of the world as well.

It also focused on the opportunities to collaborate especially in the high technology manufacturing sector as well as highlight new & emerging markets for trade and investment between India and Germany.

Indian participation

The event witnessed participation from Punjab, Maharashtra

Coinciding with Hannover Messe 2015, CII organised the Indo-German Business Summit in collaboration with BDI. The summit focused on highlighting new & emerging markets for

trade between India and Germany.

and Andhra Pradesh. Separate sessions were organised for Gujarat. In addition, a seminar on India-Germany-Towards a Strategy Skilling India and Indo- German Collaboration on Digital India were also organised.

In addition to Mazumder, the delegation included Dr Naushad Forbes, President Designate, CII & Director, Forbes Marshall; Chandrajit Banerjee, Director General, CII; Baba Kalyani, Chairman & MD, Bharat Forge Limited; Prashant Ruia, Group CEO, Essar Group; Ravi Parthasarathy, Chairman, Infrastructure Leasing & Financial Services Limited, Dr Raghupati Singhania, Chairman & MD, JK Tyre & Industries Limited, Deepak Puri, Chairman & MD, Moser Baer India Limited; Nikhil Meswani, Executive Director, Reliance Industries Limited; Sunil Mathur, CEO & MD, Siemens and Soumitra Bhattacharya, Joint MD, Bosch Ltd, among others.


Strong participation by Indian industries at Hannover Messe 2015


16

MARKE T | I N TERV I E W

EM | Ma y 2015

We are implementing smart plant conceptsClaire Kuo, Chairman & CEO, SEYI Taiwan, in an interview with Megha Roy, briefs on

manufacturing execution solutions, while analysing the Indo-Taiwan trade relations in the manufacturing landscape

SEYI Taiwan integrates machines with different automation, thus enabling solution-based products for customers. How are you transforming from a manufacturer to a total solution provider? We provide smart production solutions, instead of single press machine by working with customers, to begin with the design of customised manufacturing solutions that raises the capabilities of customer production lines. The areas include pressing machinery to robotic arms to feeding and conveying equipment. We change our business practices into the service-oriented thinking to strengthen competitive advantage of the customers, instead of only selling equipment to the customer. That makes us a total solution provider.

What are the companys initiatives towards Industry 4.0? What developments are happening on this end?For Industry 4.0, we are implementing smart plant concepts. We adopt some programs from SAP and other vendors in manufacturing execution solutions, integration and intelligence as well as information management to gradually form solutions such as shop connector systems, assembly lines, equipment, products, monitor connected together all production related processes into a complete network of intelligent production. As a machine tool plant, we have changes of technology and product development in the manufacturing sector, particularly Industry 4.0 waves. We will integrate with Taiwans ICT (information communication technology) strengths to promote products in new areas.

Given that the industry-academia activities have become important for the growth of the manufacturing industry, what steps are being taken by your company to promote this?We implemented the education cooperation with colleges and conducted employment-oriented programs to offer several positions to students in electric machine department to practice for a month. We also sent our engineers to build up industrial-college classes to teach students related courses and arrange them for internship or help to convert the hours

in factory into the students credits. This develops technical personnel training program to send our senior engineers in their junior semesters and then select suitable students for the program.

What are the challenges witnessed in manufacturing mechanical presses? How does R&D work in your domain?The major challenge is the constant knowledge about the trends of metal stamping equipment development, integrating

upstream and downstream industry resource to import comprehensive solution and provide optimal production programme, assist our customers the best of profitable production to create the win-win industrial synergies. As such, the R&D team needs to understand customers requirements in the beginning to design the whole solution to precisely satisfy their business needs eventually. This trend will be a crucial turning point to win over customers who need tailor-made solutions.

Keeping in mind the Indian demand scenario, what kind of product line is being offered by your company?

Currently, the most popular products for the India market are small tonnage models. Along with the rapid grow of India market, especially in automotive sectors; our large tonnage machines shall provider more value and meet users needs better.

Can you elaborate on the industrial trade activities between India and Taiwan? What are your future expansion plans for the Indian market?The major trade activities are fine parts and equipment from Taiwan and assembling or manufacturing the end products in India to sell in the international and domestic markets. In future, some Taiwanese companies will also set up plants in India to closely serve the customers. We will concentrate on selling more high quality and larger tonnage products first, and then build up an intensive dealer network to expand the Indian market.


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20 EM | Ma y 2015

MARKE T | TREND S

Creating jobs with Make in India Corporate India across the spectrum wholeheartedly supports the "Make in India" initiative of the government. e idea that manufacturing can have a very substantial impact on job creation and hence needs adequate focus is widely accepted today aer years of a narrow-minded focus on IT and services. e part-1 series of the article discusses that while it is possible to increase low-end manufacturing in the country in an eort to create jobs for all kinds of talents, the window of opportunity for the same is narrow and hence requires decisive action today.

The vision of "Make in India" is to facilitate investment (both domestic and foreign), foster innovation, enhance skill development, protect intellectual property and to build a best-in-class manufacturing infrastructure in India. Targets for this initiative have been clearly spelt out. Manufacturing sector growth should increase to 12-14% pa over the medium term,

manufacturing's share in GDP should increase from 16% to 25% by 2022, and 100 million additional jobs should be created in the sector in the same time frame. These targets are ambitious. Adding 100 million jobs, for example, means tripling current employment in manufacturing.

Enablers have also been identified. Unnecessary processes,

Dr Wilfried G AulburManaging Partner IndiaChairman Middle-EastHead Automotive AsiaRoland Berger Strategy Consultants [email protected]

Market Trends Wilfried May15.indd 20 5/13/2015 2:31:39 PMFORM-2.indd 6 5/15/2015 7:10:04 PM

21EM | Ma y 2015

T R E N D S | MARKET

Figure 1: With a delayed effect, manufacturing

jobs are seeing a drastically similar decline in %

of people employed in most economies

t Non-uniform capability of Indian companies to compete at global levels of efficiency and quality due to internal reasons as well as lack of a manufacturing ecosystem

In addition, globally manufacturing jobs have declined as a function of time as shown in Figure 1. The only exception here is China which has dramatically added jobs over the last few years as companies used low labor cost in China as an alternative to further investments in automation and productivity improvements. With relatively high salaries in China and a new focus on efficiency improvement in the Triad, this trend is likely to reverse itself.

Make in India The background

Corporate India across the spectrum wholeheartedly supports the "Make in India" initiative of the government. The idea that manufacturing can have a very substantial impact on job creation and hence needs adequate focus is widely accepted today after years of a narrow-minded focus on IT and services. Overall factors are also in Indias favour. Cost of capital has come down significantly since 1995 and is likely to reduce further. India's labour pool is set to be larger than China's in the mid- to long-term. Salary costs for skilled labour are already lower than Chinese labour costs. As a consequence, India's manufacturing competitiveness should improve v/s China as shown in Figure 2.

The current economic environment is also supportive. After two challenging years, the Indian economy shows signs of a modest recovery. Inflation has fallen to single digits (backed in particular by a global reduction of oil prices), GDP growth is

laws and regulations will be eliminated. Time-bound clearances will be given to projects through a single on-line portal. Appropriate skill sets will be inculcated through quality education. The government will be made more transparent, responsive and accountable and we will increase domestic value addition and technological depth.

All these points are laudable and timely. Is it then just a matter of consistent execution that will allow India to leverage her "demographic dividend" and become another factory to the world similar to China? Can we capture the space that China seems to be vacating by moving from "Make in China" to "Innovate in China"? While it is possible to increase low-end manufacturing in the country in an effort to create jobs for all kinds of talents, the window of opportunity for the same is narrow and hence requires decisive action today.

Five major trends impact our opportunity to create the intended 100 million jobs by 2022:t Competition from other low-cost countries eager to

establish manufacturing footprints of their ownt Competition from established countries trying to re-

industrialise and bring value addition and jobs back home rather than outsource them to China or an alternative

t Increasing pressure for environmentally friendly production not only in developed but also in emerging countries due to the latter's significant influence on global GHG emissions

t Need to invest in research and development to avoid creating knowledge gaps with competing economies such as China that turn out to be too large to be closed in a reasonable time frame

120150421_Figures.pptx

5

10

15

20

25

30

35

40

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

With a delayed effect, manufacturing jobs are seeing a drastically similar decline in % of people employed in most economies

Comments> Manufacturing technology

has improved labour productivity and as a result reduced the need for additional labour

> China's low cost labour has hampered further automation and productivity increases, however, current Chinese salaries are high

> To deliver cost-effective products to customers, focus has turned once again on automation, e.g., Industry 4.0 and cyber-physical systems

In all major economies (except China), manufacturing jobs as a % of labour force have declined

%

Source: Federal Reserve Bank of St. Louis , Roland Berger

France ItalyGermany China (Mainland)

IndiaUnited KingdomUnited StatesJapan

FIGURE 1


22 EM | Ma y 2015

MARKE T | TREND S

inching up to a 7-9% range and interest rates are coming down albeit slowly. This revival of economic growth, if supported by consistent government action, should boost industrial activity, increase income and rekindle consumption led growth.

However, major challenges for Make in India remain. Poor infrastructure, a tedious bureaucracy, labour law complexities and corruption are some of the key investment risks in India. Due to capacity constraints at major ports and their low mechanisation levels, slow inland freight movement, lack of last mile connectivity, etc, India's logistics performance has declined over the last 7-8 years. India's Logistics Performance Index (LPI) is now 54 down from a rank of 39 in 2007. According to a Worldbank study, the ROS of heavily logistics dependent companies is 200 bps lower in India than in best-in-class countries. In terms of Ease of Doing business, India faces clear challenges in Enforcing Contracts, Trading Across Borders, Paying Taxes, Dealing with Building Permits and Starting a Business. Labor law complexities continue to drive companies to hire temporary rather than permanent labour. In many manufacturing companies temporary labour makes up 30-70% of the total workforce.

China created a virtuous cycle as the "world's manufacturing workbench" by, among others, leveraging cheap labour; creating world-class infrastructure; adapting and improving of technologies developed overseas; achieving cost reductions through deployment at scale and achieving incremental process and manufacturing innovation. While all these points can be achieved in principle, they require timely and consistent execution for India to follow in China's footsteps.

India's declining performance in key KPIs Ascent of low-cost competitors

A major consideration of the "Make in India" campaign is the observation, that manufacturing wages in China have risen

and are now close to a factor 2 larger than corresponding wages in India. In principle, this opens up opportunities for India to enter manufacturing plays that are no longer viable in China. However, India is not alone. Manufacturing costs in Vietnam are 60%, in Indonesia 64%, and in the Philippines 67% lower than in China. In terms of labour availability, India leads the three other countries by a large margin, however, Indonesia and the Philippines trump India in terms of English speaking percentage of population. While India is the largest market among the 4 nations that we are considering, the internal market in Indonesia is also large and that of Vietnam and the Philippines is relevant.

A number of global indicators are cause for concern. In the global competitiveness report 2014-15, India scores a rank of 71 out of 144 countries compared with 34 for Indonesia, 52 for the Philippines and 68 for Vietnam. In terms of the Worldbank's Ease of Doing Business index, India is again last with a rank of 140 v/s 117 for Indonesia, 86 for the Philippines and 72 for Vietnam. In terms of the 2014 International IP index, India ranks behind Indonesia and Vietnam (Philippines have not been ranked) while its logistics performance index is such that India ranks 54 behind Indonesia (53) and Vietnam (48) but ahead of the Philippines (57).

Clearly, just because China is forced to vacate parts of the manufacturing space, it does not imply that India is the only or best alternative. As a consequence, the "Make in India" initiative needs to drive its agenda quickly in order to change key global rankings. The latter are important, as global companies do take them into consideration when evaluating their global manufacturing footprint and deciding on fresh investments.

Manufacturing is cool The re-industrialiation of the Triad

In the wake of the global financial crisis, Western nations

With the expected growth in economy

and increasing competitiveness, Indian

manufacturing is set to grow rapidly220150421_Figures.pptx

With the expected growth in economy and increasing competitive-ness, Indian manufacturing is set to grow rapidly

02468

10121416

1995 2000 2005 2010 2015

Borrowing rates

Availability of cheap labor

Labor force [mn]

+7%

+17%

-3%

Brazil 139129

India927

794

China895919

20252013

Source: OANDA, World Bank, UBS, ACMA, Press reports, Roland Berger analysis

1 Decreasing cost of capital

Rio de Janeiro 18,600

Delhi 4,800

Beijing 6,200

> India is increasing its manufacturing competitiveness vis--vis other emerging countries

2 4 6 8 10

20152010

Bad Good Index Score1)

China

India

Brazil

Russia

Manufacturing competitiveness

Key enablers and drivers2

Skilled labor wages 2013 (USD/year)

1) Based on Deloitte Global manufacturing competitiveness Index 2013 data

FIGURE 2


FORM-2.indd 12 5/15/2015 7:10:05 PM

24 EM | Ma y 2015

MARKE T | TREND S

re-discovered the charm of manufacturing as a driver of innovation, employment and services. The US, UK, France, and even Germany with a still healthy industrial base all embarked on various initiatives to ensure manufacturing employment within their own national borders. Rather than going through all the initiatives currently underway, we will focus on "Industry 4.0", the German avatar of the re-industrialisation drive.

The basic premise of Industry 4.0 is that the introduction of intelligent machines, embedded cyber-physical sensors, collaborative technologies and networked processes will once again drive an efficiency revolution in industrial manufacturing. Initiated by the German BMBF ministry (Federal Ministry for Education and Research) and launched officially with a report

"Securing the future of the German manufacturing industry" in 2013, Industry 4.0 aims to build the intelligent factory which is characterised by adaptability, efficiency and full digital integration. Some components of this factory are smart robots and machines, i.e. multipurpose, intelligent robots that are able to adapt, communicate and interact with each other and with humans. Big data will be leveraged via cloud computing, e.g. for mass customisation. Connectivity will reach a new level of quality via constant exchange of information between machines, work pieces, systems and human beings. Optimised production processes will ensure energy efficiency and allow for a decentralisation of plants.

European companies, in particular, are positive regarding the potential of Industry 4.0. Expected cost savings of 14% on average over the next 5 years would negate a large part of the factor cost advantage that countries like India enjoy today vs. developed nations (typically in the range of 15-30%). Efficiency

gains are expected to be even higher at 18% within the next 5 years. Industry 4.0 is a board room level topic for all European manufacturing companies with investments in the approach amounting to 3.3% of revenues on average. In comparison, a typical R&D budget of Western OEMs amounts to about 5% of revenue.

Established players in the EU are changing their organisations, processes and capabilities in whole or in part due to Industry 4.0. As freedom and flexibility of the production process increases, it will become possible to create products tailored for segment-by-one customer needs at relatively low marginal cost. Also, distribution processes for spare parts or not too complex consumer goods may get easier.

In terms of competition, traditional industry boundaries will become blurred as are the boundaries between industrial and non-industrial applications. Going forward the focus will be on industrial working methods, not only of products but also of services.

The value chain will be redefined as well. In a complex and intertwined manufacturing network, the roles of designers, physical product suppliers and the interfaces with customers will change. Supplier hierarchies and pecking orders are likely to change. New companies (e.g. Amazon, Google, Apple) are increasingly integrating all parts of the value chain to enhance their core service offerings.

In terms of skills, employees will need both enhanced social and technical skills. Corporate cultures with continuous training and development in the workplace will become a core competency.

Last but not least, the need for off-shoring work will reduce as will the number of available jobs in manufacturing overall.

Manufacturing companies can address

sustainability concerns by focusing on

incremental measures covering the entire

value chain720150421_Figures.pptx

Manufacturing companies can address sustainability concerns by focusing on incremental measures covering the entire value chain

1 2 3 4

5

0GreenPROCUREMENT

Green REPORTING & RISK MANAGEMENT

Green PROCESSES

GreenPRODUCTS

GreenMARKETING

Gree

nST

RATE

GIC

PLAN

NING

Energy procurement Eco-friendly raw

materials Supplier

management

Eco-efficiency analysis Waste analysis Water conservation Efficient buildings Renewables

Innovation management

Recycled products Lead user approach

Identification of values and sustainability needs of customers

Communicating and promoting Green initiatives and their benefits to all stakeholders Reporting systems for eco-indicators (CO2 emissions) Forward looking systems for relevant regulations

Source: Roland Berger Product Development, Civil Economics Competence Center

Transformation to Green Manufacturing Framework

FIGURE 7


25EM | Ma y 2015

T R E N D S | MARKETT RE N D S | MA RKET

Take Baxter, the world's first general purpose production robot as an example. Baxter's base version costs only $25,000, can be taught any task due to its learning capability, is not limited to single-tasking, can work alongside humans due to a range of built in sensors, communicates with humans via a visual interface, and can recognise and dynamically adjust to work interruptions, wrong parts, etc.

The tendency to drive efficiency by leveraging intelligent software is not limited to manufacturing alone. In many service industries, software bots today are able to take over white collar, professional and creative jobs. Whether it is writing articles for newspapers, diagnostics of health problems, writing software or even writing of songs, software bots can replace human intervention quite effectively. Overall, experts believe that for a developed economy such as the US, 37% of all top 20 jobs can be automated easily. We will have to prepare for a future in which large sections of the population may be unemployable without any fault of their own. This trend has implications for job creation in India's software and engineering services industry as well.

The next industrial revolution is hence upon us and like its predecessors it will lead to the introduction of new products and of new means of producing existing ones, the disruption of the competitive status quo both on a company and country/region level, and new requirements for workforce and infrastructure alike.

Unfortunately, India's automation and digitalisation levels are not adequate. Opportunities to leverage the country's pool of well-trained engineers and IT professionals to drive an Indian version of "Industry 4.0" clearly exist and should be pursued with the necessary drive and investments.



26 EM | Ma y 2015

COVER STO RY T E CH N OL OG Y

INDUSTRY 4.0 The quiet revolution for India

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Industry is on the onset of the fourth industrial revolution, as digitalisation now follows after the automation of production. The goal mouths are to upsurge productivity and efficiency, speed, and quality. This feature details on how Industry 4.0 shows substantial improvement in Indian application. In the industry of the future, the product is expected to become an information carrier and pilot its own way through the production process.

Dr Jrgen MssingerVice PresidentRobert Bosch Engineering & Business Solutions

Untitled-1 26 5/15/2015 7:07:12 PMFORM-2.indd 18 5/15/2015 7:10:06 PM

27EM | Ma y 2015

TECHNOL OG Y COVER STORY

27

Industry brings the masses to work. Many industrialised countries in the past decades faced a reduction in the share of industry in GDP. The share of industry in GDP is going down close to 10% in France, UK; and Germany has stopped at 23%. India is above 30%, and China even higher. No industry, no work. Many technical innovations have come up in the last years, driven by higher integration of electronics, faster microcontrollers, higher bandwidth in communication, cloud service and the emerging of data analytics. Industrialised countries are using these technologies to setup up Industry 4.0 (I4.0), the next industrial revolution, to safeguard their competiveness in manufacturing.

Their problem is that production costs are higher than in emerging countries, even taking their higher productivity, efficiency into account. They need to focus on efficient, flexible, high quality production. First projects showed significant cost reduction due to introduction of Industry 4.0 principles 10, 20, 30% cost reductions possible.

Industry is progressively playing an important role all around the globe and is considered a catalyst for innovation, growth, and social stability. Simultaneously, on the other hand, competition is getting stronger and fiercer. It is necessary to continually increase productivity while meeting the customers new demands for high quality and customised products within shorter time intervals. And only those who can make do with less energy and fewer resources will be able to cope with the growing cost pressure. To remain competitive costs have to be saved, as emerging countries offer cost advantages.

In India, we have the symbiosis of classical manufacturing with IT. The country has a big IT strength. India now wants to go global with Make in India. The past focus was on IT. India has a well paid middle class, but the masses are struggling. The industry gets the masses into jobs, therefore Modi has taken the initiative for Make in India. Manufacturing gives millions

of people a share in producing products. This is critical for Indias future. The starting point for India is excellent - broad knowledge in classical manufacturing, IT knowledge and a huge pool of highly motivated workers.

Globally, traditional manufacturing industry is in the throes of a digital transformation that is speeded up by exponentially growing technologies. Companies and their industrial processes need to adapt to this change to stay ahead of the competitors or at least be in the same pace. The widespread adoption by the manufacturing industry around the world of ICTs is now creating the stone work to make way for disruptive approaches to development, production and the complete logistics chain.

Industry 4.0

Industry 4.0 is the fusion of the physical world of production with the virtual world of information technology and Internet of Things (IoT). Humans, machines, objects and systems are connected and communicate in a dynamic, real time, optimised and self-organised way. In these intelligent production systems, all instances of the added value chain from the supplier over logistics to the customer are connected across the companies.

The industrial production can implement individualised customer requests on high-quality level, while increasing flexibility and robustness as well as optimal resource allocation. The ability of gathering and analysing the data from actual production and make an online or offline (e.g. improvement of processes, flow of manufacturing, stock) optimisation increases flexibility, reduces cost, e.g. by reduction of inventory, improves quality. Additionally, it also allows to horizontally optimise the value with focus on the customer. Big Data Analytics is the backbone to analyse the immense number of data collected.

In the Indian context, beside cost reduction the improvement in quality is the major benefit. This will enable


28 EM | Ma y 2015


28

us to compete with other emerging countries like China on the world market.

Internet of Things

The term Industry 4.0 talks into the vibrant improvements the Internet of Things will bring about in engineering, production, and logistics processes in the future. Internet of Things is a major enabler for Industry 4.0. It always goes with big data capabilities. The global data growth per day is about 8 Zetabyts (10^21) per day. In manufacturing, the potential for cyber-physical systems to improve productivity in the production process and the supply chain is vast. Consider technologies that manage themselves, where smart products can take corrective action to avoid damages and where individual parts are automatically replenished. What opportunities and challenges lay in the future for manufacturers and what will it take to conquest?

Like in other areas of our everyday lives, the Internet of Things is also becoming predominant in industry. An important aspect is the linking-up of factories to form a production network that goes beyond individual companies and national boundaries (global factory).What IoT means to businesses?t Factory visibility: IoT will provide production line

information to decision makers and improve factory efficiency

t Automation: Manufacturers can use the information to automate workflows to maintain and optimise production

systemst Energy management: Energy is frequently the second

largest operating cost. IoT can help to understand patterns of utilisation and plan energy usage

t Proactive maintenance: Lower cost sensors, wireless connectivity and big data processing tools make it easier to collect actual performance and monitor equipment health

t Connected supply chain: Real time information access will help manufacturers to lower their inventory costs and reduce capital requirements

Our world is rapidly changing. People are partaking cars, generating their own energy for their homes, and finding ways to make machines communicate with each other. Key areas of our personal and professional lives are becoming increasingly interconnected. And that makes things easier both at home and at work. Everything need not be local. The correction required could be elsewhere.

Indias possibilities - case study

A multinational manufacturer uses a piston, and matches a product to it. The pumps are produced in India. With Industry 4.0 applied the stock can be lower by 90%, efficiency can go up 3%. The crux of the problem is not local in this instance. However, the solution lay in connecting suppliers with OEMs and the customers - $7 million to be saved in specific steps of the manufacturing process.

Networked industry will help in global competition. The Germans have done it. With a focus on manufacturing, Made

The eight pillars of TPM

The total realm of manufacturing is going to

renovate and become entirely networked with

machines analysing almost every aspect of the

manufacturing process in Industry 4.0


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in Germany has a good reputation. It costs more, but people still buy it. A networked industry will help countries like India improve quality, raise their profile in the global market. There will be mass products produced for the global market.

The 1% opportunity

For Industry 4.0, high investment is needed. We are talking about plugging in sensors, and data analytics in the background. In discrete manufacturing you often optimise single steps. If you want to invest in a plant you need improvement of 20-30% in these steps to justify the investment. In batch manufacturing, however, lies the 1% opportunity across the whole process. Single events influence directly the product quality (and therefore the achievable price) and throughput of the plant. Introducing Industry 4.0 methods allows identifying unused production resources, reducing downtimes and improving product quality. If the turnover of a plant in batch processing is e.g. $1 billion, a 1% improvement gain is $10 million. Continuous detailed analysis of process parameters often leads to this kind of 1% improvements. Applying I4.0 in batch industry shows huge cost reduction potential and fast RoI.

Putting this in a global context huge savings are possible, e.g. a 1% increase in oil & gas exploration and development will lead to a saving of capex of $90 billion.

The need to drive I4.0

If India wants to be successful in Make in India, it needs to become the hub for manufacturing. This requires a focus on

exports. t It needs to bite the bullet and make this investment in

improvement. So that the world market is not driven elsewhere like China or Indonesia.

t The plant is only one piece. At present, India is at a lower level compared to other countries in terms of plant sophistication. It is many times at pure mechanical manufacturing level. The desirable level, or top of the pyramid, is a situation where 4.0 is adopted fully. We need to now tailor I4.0 concepts for India. Only this optimisation will give us the success in India.

t That said, I believe we dont have to be on top of the I4.0 pyramid. We will get easier ROI in the middle with an India optimised I4.0 approach.

t For the success in I4.0 beside a full ecosystem is required, users, enterprises, connected things and partners. In I4.0 not everything can be done by suppliers or OEM by themselves. The partners are key. Here is also a potential for India to be successful in being the right partner for the industry worldwide.

The implementation of I4.0 has already started in industrialised countries like Germany, USA. Experts see in it the fourth industrial revolution. With good reason not only is the Internet of Things transforming factory control and production structures, it also increases agility and flexibility in the production process. It will enable us to individualise even the smallest volumes to a high degree while retaining optimum productivity, thereby optimising multi-variant series production. It will allow companies to involve their customers more closely in the production process and to react

Industry 4.0 is the future topic with

high relevance and big effects on

entire value chain


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32 EM | Ma y 2015


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optimise their operations at the same time.Industry 4.0 is the future topic with high relevance and

big effects on entire value chain. Industry 4.0 concepts will be introduced in a stepwise approach. Key topics will be data security, data analytics (big data), cooperation, new business models and the usage of Industry 4.0 principles is not limited to high industrialised countries. Industry is on the onset of the fourth industrial revolution, as digitalisation now follows after the automation of production. The goal mouths are to upsurge productivity and efficiency, speed, and quality. As follows, companies can remain competitive on the path to the future of industry.

Industry 4.0 concept shows substantial improvement in Indian application. In the industry of the future, the product will become an information carrier and pilot its own way through the production process. Appreciatively, Industry 4.0 is less of a revolution and more of an evolution in many small footsteps that will actually change how manufacturing and industry do business.

The expedition of creating and developing smart factories will be a complicated and evolutionary process. Requirements for innovation are diverse as these will play an instrumental role in implementing Industry 4.0. The total realm of manufacturing is going to renovate and become entirely networked with machines analysing almost every aspect of the manufacturing process. With Industry 4.0 beginning, the Gen Z manufacturers will look downright different from what we see today and we can foresee a smart creation of the world with smart industries helping emerging nations to gain global competitiveness.

faster on changing market requirements. The ideal scenario envisages a self-controlling production process, in which production reacts autonomously to changes or faults and takes appropriate measures. We are currently at the beginning of such a development, which will gradually become established in industry. India needs to push I4.0 in order to participate from the beginning, not losing its exposed position.

The ultimate sample size of ONE

This is the idealistic situation. It allows you to enter new markets with a higher number of variants. Manufacturing helps raise the standard of people and aids in increasing market size. Although customers are price sensitive and affordability is crucial, customers realise the importance of acceptable quality levels. At present, 4.0 is just gaining momentum in India.

Incorporating built-in communication

Technology advances have distorted the boundaries between the digital and physical worlds. Intelligent, interconnected systems now seamlessly support activities along the entire value chain. This means reduced costs and enhanced efficiencies, greater speed and scale, and smarter products and services. It is to evolve into the disruptor.

The industrial sector is in the primary steps of having a continuous or rounded network that has overall connectivity and visibility. Forward-looking equipment manufacturers are starting to incorporate built-in communication as well. They comprehend that by providing connectivity as well as intelligence around energy states they can moderate the total cost of ownership of their equipment, and help their customers

The starting point for India is excellent - broad

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MANAGE ME N T | I N T E RV I E W

EM | Ma y 2015

We want to partner with the Indian machine tool industryPaul Ricard, President, DP Technology Corp, discusses the recent developments in the CAD/CAM industry with Maria Jerin. Excerpts from the interview...

MANAGE ME N T | I N T E RV I E W

How has the CAD/CAM industry evolved over the years globally? What are the recent developments?In CAM software, the customers now demand solutions that work out-of-the-box. To simplify, CAM software is constituted of essentially two parts: a main program where end-users describe the machining processes, and a post-processor that creates the code instructions. These post-processors have always been a source of frustration for everyone. It is not common for a CAM vendor to spend 6 months at a customers site to get a post-processor to work with a 75% success rate or less. All of this is highly counterproductive. More progressive companies like ESPRIT have established strong relationships

with machine-tool builders to provide them the ability to fully develop post-processors for their machines and test them in all conditions. In fact, at ESPRIT they are called machine driver in reference to a printer driver because they are made to produce near perfect output. Consequently, a customer becomes fully operational and productive as soon as the machine hits the factory floor.

What are your companys knowledge-based features that are unique in providing high-end solutions to users?We refer our CAM software as a Manufacturing Operating System. We are totally open and highly customisable. ESPRIT

Management Interview_Paul Ricard_ESPIRIT.indd 34 5/15/2015 6:36:27 PMFORM-3.indd 2 5/15/2015 6:37:23 PM

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I N TERV I E W | MANAGEMENT

EM | Ma y 2015

excess of 120 hours of training for customers, sales training for resellers as well as presentations by our executives on various subjects. We are expecting more than 500 people to attend the conference this year.

How are you viewing the demand trends across the world and in India? What are your future plans for the Indian market?Manufacturing around the world is growing at a rapid pace. Specific sectors are particularly vibrant such as commercial aviation, energy and medical. Fast developing economies, of which India is a part of, arent relying solely on export anymore. Due to their growing middle class, there is a strong need for infrastructure development: public transportation, roads, bridges, power plants, housing, etc. This drives local manufacturing, hence the need for more and better technology.

We are committed to the Indian market. In the short term, we want to solidify our technical ability to support our customers as well as make sure that our current customer base is extremely satisfied with our products and services. Medium term, we want to expand our sales reach to other regions, while continuing to grow our engineering capabilities. In the long term, we want to partner with the Indian machine-tool industry, just like we did with European and Japanese builders, in order to offer the best solutions possible for the Indian market.

boasts an Application Programming Interface (API) which allows anyone to develop specialised functions for very specific customer needs. In addition, our patented Knowledge Based Machining (KBM) engine, paired with our Feature eXchange (FX) technology, allows customers to completely automate part programming, thus cutting programming time and drastically increasing machine utilisation.

How is the CAM software leveraging cloud technology to benefit the manufacturing industry?The manufacturing industry has always expressed a serious interest in having a single source of access to product data from the manufacturers of cutting tools, machine tools and work holding that is complete and always up-to-date. Machining Cloud is a new comapany, in the process of addressing this need. Several CAM companies like us have implemented a connector to the Machining Cloud technology, thus, enabling the users to access catalogs of tool manufacturers and to automatically select tools based on features of the part they want to machine. This simplifies the selection of cutting tools, offers a list of recommended tools based on machining features and allows more precise simulation of the machining processes with accurate 3D models of tool components and assemblies.

What are the essential factors to be considered by the shop floor officials, while choosing CAM software for machining complex models?The most important factor is the availability of machine drivers (post-processors) certified by machine tool builders. Next, in order to shorten part setup and avoid costly crashes, it is important to have full machine simulation with complete collision detection. In addition, one programming environment to handle all the CNC programming needs, will cut training and improve ease of use. The ability to read native models from any CAD systems is also very important. And finally, even the best of CAM software would be of little use without a highly competent technical support team.

What can the customers look forward to in the 2015 ESPRIT World Conference?The ESPRIT World Conference is the annual gathering of the entire ESPRIT community. Customers, resellers, partners, sponsors, guests and employees from around the world get together for 5 days to listen to inspirational speakers, learn, network, exchange and also have some fun. There will be in > MORE@CLICK EM01645 | www.efficientmanufacturing.in

CANDID SIX

t If not in this industry, where would you be?"TBUFFOBHFS*EFWFMPQFEUXPQBTTJ-POTTPGUXBSFQSPHSBNNJOHBOENBSLFUJOH4P*XPVMETUJMMCFJOWPMWFEJOTPNFPUIFSTPGUXBSFWFOUVSF

t What is your favourite pastime?Footballt What are you currently reading?#JPHSBQIZPG"MCFSU&JOTUFJOt Which is your dream car?5FTMB.PEFM4UIFPOF*NESJWJOHOPXt Your dream holiday destination?5BK.BIBMt Uniqueness of India that appeals to you5IFSFBSFTPNBOZUIJOHTJO*OEJBUIBUGBTDJOBUFNFUIFLJOEOFTTPGUIFQFPQMFUIFJSQPTJUJWFBUUJUVEFBOEPQUJNJTNUIFUIJSTUPGZPVOHQFPQMFUPMFBSOBOEFYDFMUIFGPPEUIFWBTUOFTTPGUIFDPVOUSZUIFEJWFSTJUZPGMBOETDBQFTBOEDVMUVSFTUIFIFDUJDQBDFPGMJGFUIJTLJOEPGiPSHBOJTFEDIBPTwXIJDIJTGSVTUSBUJOHBUUJNFTCVUBMTPTPDIBSNJOHBOEBUUSBDUJWFy

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ROUND - TABLE | M A N A G E ME N T

Building mission-driven machines Increasing global competition, varying market demands and regulatory mandates require manufacturers of industrial machinery to continuously innovate, develop new products and optimise their production processes. To achieve these goals, manufacturing enterprises need a PLM platform that enables them to improve the productivity of NPD process, so as to operate faster, deliver better with consistent product quality and minimised lifecycle costs. A report on the round-table events on this topic, conducted recently, in Bengaluru and Pune.

To be successful in todays competitive global business environment, manufacturers need to build mission-driven machines that are smarter, more functional and easier to maintain. On the other hand, todays new product development (NPD) process is comprised of hundreds of decision points and parallel work flows across multiple disciplines that take place in a global context. To balance this effectively, manufacturing enterprises need a product lifecycle management (PLM) platform that enables them to flourish in this complex business environment by making smarter decisions and better products. In this context, EM along with Siemens PLM Software had organised round-table discussion events in Bengaluru and Pune, to deliberate on this topic. IMTMA was the Knowledge Partner for the same.

With the theme of Building Mission-Driven Machines

From bid to delivery, the round-table discussion was moderated by Shekhar Jitkar, Publisher & Chief Editor, EM.

The panelists of this discussion were S R Chandramauli, DGM - Design & Development (Special Products), Ace Designers; Raju Sagi, Head - Product Engineering & Development, BFW; Ganapathiraman G, Vice President & GM (South and South-East Asia), ARC Advisory Group; Mohini Kelkar, Managing Director, Grind Master Machines; Santanoo Medhi, Managing Director & CEO, Premium Transmission; and Srinath Koppa, Technical Director, Siemens PLM Software.

T K Ramesh, CEO, Micromatic Machine Tools and Gautam Doshi, Advisor, IMTMA, delivered the keynote speeches in Bengaluru and Pune, respectively. Ramesh discussed the importance of knowledge to drive more business, recommending

Megha RoyFeatures [email protected]

Srimoyee Lahiri Sub-editor & [email protected]

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MANAGEME N T | ROUND-TABLE

everyone to upgrade his own skills & knowledge levels, create collective value and deliver it to customer. Creativity & innovation is the foundation of success for manufacturers. Competitive knowledge has a competitive advantage, for example, technical knowledge, market knowledge and process knowledge. PLM is all about managing this knowledge. It is extremely important to manage this knowledge and innovate, he added.

On the other hand, Gautam Doshi, Advisor, IMTMA, spoke on the challenges of generating quotations on time, meeting customer demands on time, along with offering precise commitment to delivery. An appropriate speed & infrastructure are required to address these challenges. He further stresses on what can be done to make the information-flow better, decision-making effective and ultimately bring speed in the operations.

Strategies for efficient manufacturing

Industrial machinery manufacturers are constantly challenged to adapt to new circumstances. Many manufacturers find themselves facing an increasing number of new requirements such as demand for more flexible machines that can be rapidly adapted to new products as formats, as well as for machines that can be easily integrated into existing plants. To address these challenges, manufacturers need to create a highly efficient product development and manufacturing environment that fosters continuous and measurable product and process innovations.

Jitkar asked the panel to suggest strategies to achieve these tasks in long term. Commenting on the same, Ganapathiraman opined that investments should be made on the latest technologies, be it for machine tool or electronic products manufacturing. The need of the hour is consistent technology upgradation. Technology is one of the biggest factors driving the Indian manufacturing industry. Also, one of the ways to survive the competition is increasing the volume, which is a major challenge in India. We expect a CAGR growth of 9 to 11% in the economy in the next five years depending on market conditions. With this, technology is all set to take a huge leap in the coming years.

On the other hand, Kelkar opines the importance of being customer oriented. We dont have standard products in our company. We develop grinding, polishing and deburring

machines for various applications. So, we have been more customer-oriented from the beginning. Since we supply to a huge variety of industry sectors, customisation becomes important. Thus, modularisation is vital here. Also, we have created a databank that is easily accessible to the design, sales and marketing people, so that one can select the right module and thus customise and prepare the quotation fast. Preparing quotations should not take time in any company. If the relevant data is made available fast, one can offer customised solutions sooner, she believes.

How to improve the productivity of NPD process, so as to operate faster, deliver better with consistent product quality and minimised lifecycle costs?..this is the question for every manufacturer today. In this context, Jitkar asked the panelists to brief on the innovative solutions for achieving success in NPD. On this, Chandramauli suggests, Product development happens under two circumstances: when there is demand and when demand is created. The industry should try to focus on innovating products, to help create demand. To do this, we need to work closely with the user segment and know their requirements. A research on the latest developments on advanced tools is required. We should also focus on the development of high technology consumer products which should be cost effective. All these aspects need to be studied

Modularity, standardisation, cost advantage and building faster machines can bring the required benefits to manufacturing Raju Sagi, Head - Product Engineering & Development, BFW

Sheer lack of technology and advanced tools has wiped out many companies in the past. Manufacturers should invest in region-specific customer feedback for a better understanding Ganapathiraman G, Vice President & GM (South and South-East Asia), ARC Advisory Group

The industry should try to focus on innovating products, which are new to the market S R Chandramauli, DGM - Design & Development (Special Products), Ace Designers


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from the customer perspective and mapped down to design specification with a quality function deployment scheme. He also underlined the importance of testing the products after assembly and development, which is not addressed strictly in the Indian market as compared to other global markets.

In case of the Indian machine tool sector, over the years, the industry has witnessed a transition from small to big companies with the development of various products in different sectors. As per Sagi, the Indian machine tool industry has majored in developing standalone machines over the past few decades. Over the period of time, manufacturers have received an improved feedback for accuracy, reliability and quality of products, while meeting customer requirements. Now, we have reached a stage when we should strategise a series of machines, from small to big, in the same configuration. Any product developed as a series will have a consistency in its quality, productivity, aesthetics and commonality between all the machines. This is one of the areas where we are falling short in India as compared to the global manufacturers. Modularity, standardisation, cost advantage and building faster machines can bring the required benefits to manufacturing he averred.

Towards new product development

According to Koppa, to understand the manufacturing process is important. By leveraging technologies such as 3D technology and product data management, the lifecycle level can be reduced till the production level is achieved. For commissioning & servicing, there are ways to optimise the entire process. So, virtual commissioning makes the supplier-customer transparency easy. Even before the person goes to the commissioning level, it can be already practiced and proven. So, this shortens the commissioning process at the clients end and no resident engineer is required. For service management, we need to predict the parts which can go wrong. Predictive maintenance is thus important, he said.

Constant technology innovation and customer demand for the latest technologies combine to play extra pressure on todays industrial machinery manufacturers. These pressures require manufacturers to add new features in their existing products at a very rapid pace. When Jitkar asked about improvising on existing products by adding more features, Ganapathiraman said, In todays scenario for new product development, manufacturers cant survive without having proper tools. Sheer

PARAMETERS CONVENTIONAL HIGH SPEED MACHINING

Spindle speeds, rpm 4,000 8,000 ~ 50,000

Axis feed rates, mm/min 10,000 2,500 ~ 60,000

Rapid feed rates, mm/min 20,000 20,000 ~ 60,000

Accelerations, g -- 0.5 ~ 2.0

Inputs from Dr Nageswara Rao Posinasetti, Professor, Department of Technology, University of Northern Iowa, on the comparison of conventional and HSM parameters

lack of technology and advanced tools has wiped out many companies in the past. Manufacturers should invest in region-specific customer feedback for a better understanding and then further invest in new technologies and tools.

Moving on, Koppa suggests that the examination of the innovation process quickly determines the need for transformation. Successful innovation requires companies to facilitate open innovation, enable collaboration both inside and outside of their organisational borders and instill discipline across their lifecycle processes. Siemens PLM Software provides a PLM platform, especially designed for industrial machinery manufacturers that unify both the product and production lifecycles, he said.

Product costing & bidding

Mostly bidding of industrial machinery includes product and lifecycle cost. The challenges faced by the manufacturers are how to drastically reduce the time to develop new industrial equipment, while ensuring that these machines can operate at close to 100% uptime. Equally important, the basis of competition is shifting towards delivering excellence in service and parts management.

When Jitkar asked, how to estimate the lifecycle cost accurately, Medhi opined, If a manufacturer starts with QFD,

The feedback from the service is quite important. Transparency between the supplier and customer helps to plan a cost structure efficiently Mohini Kelkar, Managing Director, Grind Master Machines

Condition monitoring system is a good solution. It gives an advanced warning to the machine, giving rise to smart machines Santanoo Medhi, Managing Director & CEO, Premium Transmission

Successful innovation requires companies to facilitate open innovation, enable collaboration both inside and outside of their organisational borders and instill discipline across their lifecycle processes Srinath Koppa, Technical Director, Siemens PLM Software


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the design mode of failure can be easily found. Given that the machine will be obsolete someday, some module will die earlier, and some later. So, finding out the designed failure mode is important. Accordingly, over the long time, the spare or service parts can be accommodated. For example, for the car manufacturers, every 30,000 km, there are break-pads, and for every 5,000 km, there are air filters. This has come from designed failure mode, and that is how one needs to plan servicing. So, when an operation fails, he has to replace the machine. As such, every 1000 hours, the required parts should be changed.

He also believes that through this process, one can estimate the total lifecycle cost, assuming the cycle time. That is the cost per unit of our machin

em may 2015

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