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Welcome to Advanced Manufacturing magazine's e-newsletter! "A must-read for decision-makers who manage, source and implement manufacturing technologies. Canada's #1 source for advanced manufacturing technology news, analysis and products." e-Newsletter Today's e-newsletter is sponsored by:
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2007
was a year of mixed results for manufacturers, which saw very little
change in both the volume and value of manufacturing sales, according
the Statistics Canada's report, According to the report, Canadian manufacturers posted a modest 0.4% increase in sales to $613.4 billion. In constant dollars, factory sales were essentially flat, following a lacklustre 2006 in which sales edged down. Manufacturers had a mixed year in other respects in 2007. Employment fell by an estimated 55,300 jobs and total hours worked declined 2.9 per cent. However, labour productivity in the sector increased 1.9 per cent last year, nearly four times the gain for the economy as a whole. Operating profits also increased, halting two consecutive years of declines, but capital investment slid. As in previous years, manufacturers faced several major challenges, including the rising exchange value of the Canadian dollar and the weaker export market in the United States. The Canadian dollar surpassed parity with its U.S. counterpart by late September, making Canadian-manufactured goods more expensive south of the border. In addition, events in the United States, such as the ongoing sub-prime mortgage situation and declining consumer confidence, weakened demand for Canadian-made goods in this market. However, exports to other countries increased. The report also noted that higher prices were a significant factor in boosting sales in two key industries during the past five years. Between 2003 and 2007, prices for both petroleum and coal products and primary metals have soared about 65 per cent. Excluding these two price-inflated industries, total manufacturing sales would have declined 1.1 per cent in 2007, after a 1.4 per cent drop in 2006. Ontario remained the leading manufacturing province in Canada, accounting for almost 48 per cent of the national sales total, but this was well below the proportion of 55 per cent in 1999. As you will see in the stories that follow however, things are looking up. Reports from associations such as the APMA and the CME point to industry and government initiatives that are seeking to reverse the trend and hopefully produce improved results that will show up in the 2008 Year in Review. John Tenpenny, editor Please feel free to drop me a line:
Forward-thinking approach encouraged at annual auto parts makers conference It was a challenging year for the Canadian auto parts industry to say the least, but manufacturers need to keep their eyes on the future. That was the message at this year's Annual Conference & Exhibition, where the theme was "Developing 2020 Vision." Keynote speakers at the two-day event held at the Hamilton Convention Centre included Ford Motor Company of Canada President and CEO Barry Engle and Bo Andersson, Group VP of General Motors Corporation. The event also featured an innovation panel moderated by the Auto21 Network. "What doesn't break you makes you stronger," noted APMA Board of Directors member Jan Chaplin during the association's Annual General Meeting, which kicked off the 2008 Conference. During 2007, the APMA certainly did it's best to strengthen the industry. "APMA's focus and services continue to change to meet the ever changing environment in which our members operate," said APMA President Gerry Fedchun. "Through the continued support of its members, APMA has been very effective in garnering attention for our sector, affecting positive change and increasing government support while APMA itself engages in activities which enhance the competitiveness of its members."
NAM and CME call on leaders to strengthen North American competitiveness The president of Canadian Manufacturers & Exporters, Jayson Myers and National Association of Manufacturers President John Engler, issued a ringing endorsement of the North American Free Trade Agreement and called on the political leadership to address common priorities for strengthening North American competitiveness. A majority of manufacturers across North America say that NAFTA has helped them become more competitive and to expand their business in domestic and international markets, according to a study that will be released soon by the NAM and CME. The survey, conducted jointly by Deloitte firms in Canada, US and Mexico, NAM, the Manufacturing Institute and CME, shows that 49 per cent of manufacturers in the United States, Canada and Mexico have found that the NAFTA agreement, signed 15 years ago, has enabled them to grow their business both within and outside North America. Another 41 per of manufacturers report that NAFTA has had a neutral or slightly positive effect on their business. Only 10 per cent of companies say that NAFTA has had a negative impact on business activity. "NAFTA has opened many doors of opportunity for companies across North America," says Myers. "We need to build on that to equip our companies with right tools to be globally competitive."
Siemens PLM Software announced what the company calls the next big breakthrough in digital product development with synchronous technology, a history-free, feature-based modeling technology, that Siemens says provides users with up to 100 times faster design experience than ever before. Launched via a global webcast in conjunction with Hannover Fair, Siemens PLM Software's new patent-pending technology combines the best of constraint-driven techniques with direct modeling, and is being integrated into the company's next versions of NX and Solid Edge software.
Endress+Hauser Canada makes major investment to develop next generation of engineers
Terming it an investment in engineers of the future, Endress+Hauser Canada is donating $269,000 in hardware and software to fund a new measurement laboratory for students in the Automation and Instrumentation program at the British Columbia Institute of Technology in Burnaby. The contribution by the Burlington, Ont.-based process measurement engineering services provider extends over three years. The initial phase will see the company donate $209,000 in instruments to provide the lab with the most current and leading-edge measurement equipment available. The firm is donating $30,000 in 2008 and 2009 to provide a range of software, such as portal and field care tools. "Colleges and universities sometimes have difficulty providing training on up-to-date equipment and technologies because they don't have the resources to stay current in a fast-changing market. Partnerships with industry, such as the Endress+Hauser lab help ensure future talent is being honed with the most modern and technologically advanced equipment possible," said Endress+Hauser Canada president Richard Lewandowski. The new, 867 square-foot laboratory will consist of six student work stations and contain such equipment as advanced flow technologies, "Time of Flight" level measurement instrumentation, pressure and temperature measurement and liquid analysis.
New institute formed to advance automotive research
A new research institute has been established at McMaster University to coordinate its increasing involvement in the automotive sector. The announcement was made at the Automotive Parts Manufacturers' Association annual conference in Hamilton. The McMaster Institute for Automotive Research and Technology, known as MacAUTO, brings together more than 75 researchers in engineering, science, business and other faculties involved in automotive-related research. This work involves collaboration with more than 30 private and public sector organizations. "Better coordinating our efforts across disciplines will lead to new ideas and better solutions for the automotive industry," said Mo Elbestawi, vice-president of research and international affairs at McMaster. "It will also make it easier for organizations to access our pool of highly qualified researchers and leading-edge facilities to advance a vital industry sector in Ontario and worldwide."
CAHR: Canada's automotive industry is "competing without a net" CAHR (Council for Automotive Human Resources) released its "Competing Without a Net: The Future of the Canadian Automotive Industry" report at the APMA Conference in Hamilton, Ont. The report is intended to be a forward looking document to assist the industry to create a common perspective of existing and emerging human resource issues; and to establish an approach to alleviate anticipated challenges while building on the strengths of the sector. As suggested by the report title, Canadian firms are "competing without a net." Many of the industry's traditional sources of competitive advantage have either disappeared or been significantly reduced. "The automotive marketplace is constantly changing and its workforce must change with it," says John Mavrak, Executive Director of CAHR. "While having a skilled workforce will not ensure the survival of the industry, the absence of such a labour market will ensure the demise of its competitive advantage. Canada's automotive labour market must remain leading edge."
Leverage your automation tools and automate the process - not the parts High mix, low volume manufacturing is everywhere and build-to-order requirements may sometimes look impossible to automate economically. However, that's not the case. A useful approach is to identify "common" process requirements for many or all part numbers of a product family and to automate using quick-change tooling and re-configurable parameters to handle the parts range. Your first thought might be that it can't be done because of size or other variations and overcoming your hesitation is as much faith as it is expertise. This approach leverages in-house product knowledge along with automation tools, which are integrated. Creativity can take any operation to a higher level of automation if you use process knowledge to "see" what the manufacturing floor might look like with a particular step or operation automated.
When it comes to sustaining 5S, audits are the ultimate measuring stick I suppose that Sustain is the fifth S for a reason. Not only is it the most difficult level to achieve, it is by far the most difficult level to "sustain." While much has been written on this subject, I have found that the best way to sustain the gains accomplished through 5S is through the audit system. Simply put, done well, audits are the ultimate measuring stick. Done poorly, they are next to useless and your employees will quickly notice.
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