MRO Today - Manufacturing Industry News Archives

Manufacturing Industry News:
News from the week of July 26, 2004

NAM praises Bush initiative on methane gas capture
GM wins environmental award for fuel-cell curriculum
Jobless claims increase in recent week
Durable goods orders rise in June
Ford's paint-solvent recovery program turns 20
Business leaders see upward mobility for global economy
OSHA cites box maker for hazardous work conditions
GM manufacturing innovations to improve quality
Ford to exceed emissions standards on half of new autos
GM breaks ground for engineering centralization unit

NAM praises Bush initiative on methane gas capture
The National Association of Manufacturers (NAM) welcomed the Bush administration’s “methane to markets” partnership. The program is designed to coordinate international efforts to expand use of methane gas capture technologies, reduce the waste of natural gas, and provide energy users, particularly in developing countries, a cleaner source of fuel.

“This partnership presents a focused opportunity to employ innovative U.S. technologies that can address several important priorities at once,” said NAM vice president for resources and environmental policy Mark Whitenton.

The initiative unveiled the Environmental Protection Agency (EPA) will include both the U.S. Energy and State Departments, U.S. AID, and participation from Australia, India, Italy, Japan, Mexico, the United Kingdom and Ukraine. It will work to deploy methane capture technologies in developing countries.

“Using methane capture technologies at land fills, coal mines and older natural gas pipeline systems will greatly reduce the volume of gas now escaping into the atmosphere and being wasted,” said Whitenton. “Instead, the methane can be gathered and provided to people for use as a clean energy source.

“Making more natural gas available will improve the health of people and the environment, especially in the developing world where there are often few fuel options beyond the burning of wood or cow dung,” Whitenton said.

U.S. industry has been developing these methane capture technologies, both independently and in coordination with the EPA and the Department of Energy for many years, Whitenton said. For example, Ford Motor Co. and DTE Energy partnered in providing landfill gas to Ford’s facilities in Wayne, Mich., since 1991. And Consol Energy won an EPA Climate Protection Award in 2002 for its work gathering methane in Appalachian coal mines.

“Industry looks forward to working in partnership with our federal agencies and international partners in sharing these technologies that will boost environmental quality and economic growth around the world,” said Whitenton.

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GM wins environmental award for fuel-cell curriculum
General Motors' nationwide in-school fuel-cell education program, "Fuel Cells: Driving the Future," was honored with an Environmental Excellence in Transportation (E2T) award from the Society of Automotive Engineers' (SAE).

The award was announced at the society's 2004 SAE Government/Industry Meeting in Washington, D.C.

The SAE's E2T awards recognize the ingenuity of individuals and groups in developing innovations that reduce the transportation industry's impact on the environment. The curriculum was honored in the Education, Training & Public Awareness category, which recognizes originality in educating and training of people which results in significant environmental improvements to the usage and application of transportation.

"We are honored to receive this prestigious award for our work in environmental education," said Elizabeth Lowery, vice president of environment and energy. "GM has created and supported these initiatives because we believe they are essential in creating a sustainable future. By developing a curriculum that explores the technology now, we believe revolutionary ideas and research will make that day come sooner."

The fuel-cell curriculum was launched in 2002 and has reached some 3.5 million middle-school students. It was developed by Lifetime Learning Systems Inc., a division of Weekly Reader Corp., and provides science teachers with a free, engaging curriculum highlighting the fundamentals of fuel-cell technology.

As part of GM's overall K-12 education initiative, the curriculum has a broader goal to enlighten and educate children about important issues that will impact their future. All of GM's educational initiatives provide timely and interesting information, as well as suggestions for incorporating these ideas within a science curriculum.

"We all have a responsibility to protect our environment," said Lowery. "Through our outreach and educational programs, we are able to instill this ideal in today's young people with hands-on learning experiences."

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Jobless claims increase in recent week
New claims for unemployment insurance increased by 4,000 for the week ended July 24 to 345,000, according to the Labor Department. The four-week moving average of jobless claims declined by 1,000 to 336,250.

The four-week moving average is generally considered by economists to be the more reliable of the two because it smoothes out week-to-week volatility. Both rates remained below 400,000, which is the level economists use to define a weak labor market and a stable one.

Continuing claims for unemployment insurance increased 174,000 to 3 million for the week ended July 17. Continuing claims are those older than two weeks.

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Durable goods orders rise in June
New orders for manufactured durable goods increased 0.7 percent in June, or $1.4 billion, to $191.7 billion, according to the Commerce Department. This followed a 0.9 percent decrease in May.

Durable goods are costly manufactured items expected to last three or more years.

New orders for machinery increased 0.3 percent in June and new orders for transportation equipment increased 4.2 percent. Orders for capital goods equipment increased 4.1 percent. New orders for computers and electronic products declined 1 percent.

“The 0.7 percent increase in durable goods orders and 1.2 percent gain in non-defense capital goods orders, excluding aircraft, shows that the capital equipment recovery remains on track,” said Daniel Meckstroth, chief economist of Manufacturers Alliance/MAPI. “Although the monthly durable goods orders indicator is very volatile in a month-to-month basis, Manufacturers Alliance/MAPI believes that the economic fundamentals are still very positive.”

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Ford's paint-solvent recovery program turns 20
A trend-setting paint-solvent recovery program developed by Ford Motor Co. 20 years ago has reclaimed more than 38 million gallons of waste material since its inception.

Ford officials recently took delivery of the 50 millionth gallon of remanufactured solvent, commemorating the program’s 20th anniversary.

Introduced at Ford’s Wixom, Mich., assembly plant after a series of pilot programs beginning in 1984, the closed-loop recycling process pioneered by Ford is now in use at all of the company’s 19 assembly plants in the U.S. and Canada and has been adopted by other automakers as well.

The program has helped Ford reclaim millions of gallons of paint solvent, recovered more than 10.4 million gallons of sludge for use as fuel and significantly reduced the cost of the company’s assembly-plant paint operations.

After investing more than $1 million in waste-recovering and distilling equipment, paint-solvent recycler Gage Products officially launched its solvent recovery program for Ford in 1988. Since that time, the company invested $4 million to improve and expand its closed-loop manufacturing processes.

Today, Gage collects Ford’s used purge solvents and paint in tank trucks and transports them to its processing facilities in Ferndale, Mich. The company conducts a detailed analysis of the waste to help monitor and improve the efficiency of Ford’s paint operations.

Solid waste contained in the liquid material is removed for use in cement kilns as a clean-burning fuel that substitutes for pulverized coal. Gage distills and refines the remaining liquid into pure solvent. Finally the company mixes in specific amounts of raw material to match Ford’s original blend requirements and delivers the recycled solvent back to the originating assembly plant for reuse. More than 30 North American automotive assembly plants now rely on Gage for the management of their paint-system waste materials, according to Gage Products president Donald Dixon.

"Since 1990, Ford’s use of reclaimed paint solvent instead of virgin solvent has resulted in a savings of nearly $75 million," said Andy Acho, Ford’s worldwide director of environmental outreach and strategy.

During that same period, Ford also has been able to reduce the percentage of solid waste in the paint system from approximately 30 percent to less than 15 percent.

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Business leaders see upward mobility for global economy
Business leaders share a more optimistic view for global business growth in the immediate future, according to an annual Manufacturers Alliance/MAPI survey.

Reasons for their optimism, as well as more detailed findings, are reported in the Survey on Global Business Outlook 2004, which highlights market opportunity information derived from the survey of some 109 executives from leading manufacturing firms.

Survey participants were asked to indicate their companies’ business prospects for the immediate future (six months to one year) compared to the previous year and responses were elicited for the markets in the major trading regions of the world: Africa, Asia/Pacific, Central and South America, Europe (Central and Western), the Middle East, the Newly Independent States of the former Soviet Union, and North America.

Optimism about the business climate is high for the United States, China, India, and Mexico. Enthusiasm about the overall global business climate is marginally improved over 2003. India jumped from 10th place in last year's survey to fourth place in 2004 in rankings of markets with greatest potential for long-term growth.

A majority of this year’s respondents predict that the business climate in all three North American countries will improve in 2004.

The highest level of respondent optimism, albeit less than a majority sentiment, in Central and South America was generated by Brazil.

In addition to China and India, at least half of the respondents predict business will improve in 2004 in two other Asia/Pacific nations: South Korea and Thailand. Moreover, predictions about Japan’s business climate for the coming year are markedly more optimistic than one year ago.

Respondents remain moderately positive about near-term business prospects in Russia.

South Africa was the lone country generating any enthusiasm in Africa, while the United Kingdom was the only country in the Central and Western Europe region where a majority of respondents believed that business conditions will improve. There was little enthusiasm regarding markets in the Middle East.

A majority of respondents who offered a view on the issue agreed that the euro has had a positive impact on the European Union, creating a more integrated, competitive, and dynamic economic environment. An even greater number believe the common currency will play a bigger and more beneficial role for the region in the future.

“After several years of reported pessimism in this series of surveys, it is encouraging to see manufacturers identify a number of global markets where they see improved prospects over the balance of 2004,” said Frederick T. Stocker, Manufacturers Alliance/MAPI vice president and general counsel, and survey coordinator.

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OSHA cites box maker for hazardous work conditions
The Occupational Safety and Health Administration (OSHA) cited Elberta Crate & Box Co. for failing to protect workers from safety hazards at the company's Bainbridge, Ga., plant.

"We must make sure that employers protect employees from workplace hazards to ensure that injury and illness rates continue to decline," said Labor Secretary Elaine L. Chao. "The significant penalty of $159,000 in this case demonstrates the Labor Department's commitment to protecting the health and safety of America's workers."

The company received two alleged willful citations, with proposed penalties totaling $110,000, for exposing workers to serious injuries from unguarded "points of operation" on box-making machinery and uncovered, energized electrical connections.

The investigation, which began Jan. 27, found management was made aware of the requirement to install machinery guards following a 2002 accident, and maintenance crews were routinely failing to replace covers on electrical panels and connections after cleaning operations.

Additionally, the company received 17 alleged serious citations, with proposed penalties of $49,000, for exposing workers to fall hazards from unguarded stairs and work platforms; failing to provide employees with personal protective equipment and follow lock-out/tag-out procedures that render machinery inoperable during cleaning and maintenance; failing to maintain an emergency eye wash station; blocking emergency exits; improper use of compressed air; and additional machine guarding and electrical hazards.

OSHA initiated the inspection as a "follow-up" to an August 2003 fatality investigation.

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GM manufacturing innovations to improve quality
A new innovative manufacturing technology developed by General Motors Corp. could enable the company to run four-, six- and eight-cylinder engine parts on the same machine, reducing changeover costs and improving quality.

GM R&D's new agile machining fixture is among three new manufacturing innovations that will enable the company to quickly respond to customers' changing needs.

"We are driving innovation into our manufacturing operations with highly flexible technologies that can perform multiple functions and identify opportunities to improve quality," said Larry Burns, vice president of research and development and planning. "These manufacturing tools and systems will enable the company to save millions of dollars in our body assembly and machining operations."

Typically, GM's machining operations have been designed to process one specific product, because the clamps, or fixtures which hold the parts, cannot accommodate more than one application at a time.

According to Steve Holland, director of GM's Manufacturing Systems Research Lab, GM's new agile machining fixture has a unique flexible design, which is an industry first because it can be easily reconfigured to machine multiple product designs in a matter of minutes vs. several months, the time it can take to change to a new fixture.

The GM agile machining fixture will be installed in a low volume application within a GM Powertrain plant in the first quarter of 2005 and will help maximize capacity utilization and enable more efficient product changeovers.

"With this innovative agile fixturing concept, we can now run different engine or transmission families across common machining lines," said John Schweikert, executive director of manufacturing engineering, GM Powertrain Division. "As the concept continues to pass validation testing, we will identify additional applications in our Powertrain plants."

In another development, a computer-based vision system recently developed by GM is helping employees in 22 body assembly plants in the United States, Canada and Mexico to quickly diagnose issues and ensure quality.

The Video Variance Monitor uses a video camera to capture part cycles and transfers the digital images to a computer. Then, with GM R&D developed software, the dimensional engineers or toolmakers can visualize the entire sequence frame by frame on the computer to find the root cause of the variation.

The Variation Reduction Adviser, another GM R&D innovation, is a Web-based software tool that helps employees resolve quality issues. It is being used in 11 GM body shops in the United States, Mexico and Canada, saving up to $15 million a year.

At their computers, employees can view and analyze body shop operations and share problem-solving data on various parts and operations, within the plant and across the 11 GM assembly centers. When a new problem occurs, employees can conduct a search to learn if the issue has occurred before and how it was addressed. When a new issue is solved, the problem and its solution are logged for future use. All shifts across all 11 assembly plants can share each other's solutions.

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Ford to exceed emissions standards on half of new autos
Ford Motor Co. announced more than half of its 2005-model year light vehicles will meet the Environmental Protection Agency’s (EPA) new Tier 2 emissions standard – 14 percent more than required by law.

In addition, Ford will certify 14 car and SUV models, totaling more than 1 million units, to meet or exceed the Tier 2 Bin 5 tailpipe emissions level, one of the most difficult Tier 2 standards to achieve.

In layman’s terms, every model certified to Tier 2 Bin 5 produces less than 0.16 grams of smog-forming pollution per mile. That’s almost five times cleaner than Tier 2 Bin 10, the least clean Tier 2 level for cars, which allows no more than 0.76 grams per mile.

"The unprecedented number of new products Ford is launching this year is helping us clean the air for a better world, and do it faster than the law requires," said Greg Smith, executive vice president and president, The Americas.

The EPA required manufacturers of cars and light trucks to introduce their first Tier 2-certified vehicles in 2004. In 2005, manufacturers are required to certify 50 percent of their fleet to meet Tier 2 standards. On a corporate basis, 57 percent of Ford North America’s vehicles are forecast to meet the standard.

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GM breaks ground for engineering centralization unit
General Motors Corp. (GM) and government officials broke ground on a $385 million engineering facility at GM Powertrain's headquarters site in Pontiac, Mich. The new facility will consolidate 1600 jobs, or most of GM's Michigan powertrain engineering and laboratory operations, into the Pontiac site.

Business areas affected include component and dynamometer lab operations and transmission, diesel and hybrid engineering. GM Powertrain's current Michigan operations include transmission engineering and testing in Ypsilanti, Mich., diesel engine engineering and testing in Romulus, Mich., hybrid propulsion systems engineering and testing in Troy, Mich., engine testing in Warren, Mich., and component testing in Wixom, Mich. GM Powertrain vehicle integration and emissions testing remains at GM's Milford Proving Ground.

GM expects this move to make its operations more efficient and competitive.

"It is partnerships like these that keep GM continuing to invest in the state of Michigan, Oakland County and the city of Pontiac. The consolidated powertrain engineering operations will allow GM to provide flexible engineering development tools to bring new, robust powertrain technologies to market at an ever-increasing speed," said Ed Koerner, vice president of engineering for GM Powertrain. Construction is expected to be complete by late 2007.

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