Latest News

By Roger Landman, Head of Product Management at SYSPRO The fabricated metals industry inherently runs on very slim margins due to factors like fluctuating material costs, direct and indirect labour and overhead expenses. Global raw material costs are often dictated by the London Metal Exchange (LME), the largest exchange for options and futures contracts for base metals, which includes steel, aluminium, zinc, lead, copper and nickel. Besides the volatility of external global factors, the industry is also expected to meet specific, made-to-order, customer demands. With all these factors at play, it comes as no surprise that the industry is so heavily reliant on specific raw materials suppliers, manufacturing processes, labour and outbound logistics requirements. With ongoing supply chain disruptions, competitive advantage is being lost. According to the recent SYSPRO survey entitled ‘Realigning the links of the disconnected supply chain’,  82 percent of fabricated metal businesses have experienced supply chain and material handling disruptions, further eroding diminishing margins and ultimately customer service. Despite these challenges, only 12 percent of businesses have systems that support in servicing external customers. To build resiliency, metal fabricators should consider the right technology solutions to improve operational efficiencies, enhance external collaboration and meet unique customer demands. Maintaining a consistent supply of raw materials For decades, China has been a leading supplier of raw materials to the fabricated metals industry, partly due to its competitive pricing to match low industry margins. Russia has also been a top producer of materials such as aluminium, steel and nickel. But raw materials don’t just stop at metals. Gasses like Oxygen and Argon are essential in the welding of carbon steel and some high alloy steels. With ongoing challenges like global lockdowns, sanctions and other unavoidable disasters, distribution of these materials has also been severely delayed.  Last year, several countries experienced […]

Unplanned downtime is a manufacturer’s worst nightmare. The nightmare worsens if goods on the idle production line are perishable food and beverages, as too much of a delay can lead to product losses. Manufacturing lines are complex systems made of thousands of parts, each doing their own important job. If one part fails, this has a cascading effect up and down the production line, to the extent that production may come to a complete halt. When this occurs, there are two options: perform a repair on the broken part, or replace or upgrade the entire system. While system upgrades have their own merits, they are expensive and entail large windows of undesirable, costly downtime while old systems are removed and new ones are installed and commissioned. The alternative approach is to replace the broken part, which sounds simple and should be much quicker than replacing the entire system. However, if the offending part turns out to be obsolete — that is, no longer manufactured by the original equipment manufacturer (OEM) — then a quick task suddenly becomes more difficult. This is because quality obsolete parts are notoriously difficult to source so, if manufacturers are not prepared in advance, they may find themselves having to shut down production for much longer than initially anticipated. Furthermore, if corners are cut to find cheaper replacements, or if parts are bought simply because they were the easiest to find, manufacturers are liable to incur repeated downtime as lower-quality parts are likely to fail again, and quickly. As industrial systems typically have long lifespans, they are especially susceptible to broken parts, and are more likely to contain obsolete parts. That is why it’s important to have a comprehensive obsolescence plan in place. Obsolescence audit An effective obsolescence plan should involve a full systems audit, to […]

Amid a slow political process on climate change, businesses globally must step up their efforts to reduce carbon emissions. Engineering and manufacturing can make an essential contribution to achieving net zero, as manufacturing plants, machinery, and sophisticated production processes are at the heart of global value creation everywhere. The good news is that we can help to significantly limit global warming and reach net-zero emissions, using the technology and know-how we already have. Three key priorities that will propel us more quickly on this journey – if we embrace them consistently: Focus all our efforts on minimising greenhouse gas emissions. Use all available levers for improvement, from the thousands of incremental refinements that add up to significant efficiency gains over time, to fundamentally designing and adapting large industrial plants and processes with the goal of climate neutrality. We will need to question established routines and scrutinise every aspect: can we minimise the amount of stainless steel or other raw material and still get the same performance? How can we reuse more of the waste we produce in production processes, or – even better – avoid it? And this line of questioning doesn’t stop within our own operations; we must encourage, or even require, our suppliers to do the same. This is critical given that a significant amount of greenhouse gas emissions are generated in the supply chain. We must put energy efficiency front and centre. There is no doubt that energy efficiency improvements will have to play a crucial role in putting the world on a net-zero pathway. In particular, heating and cooling require our immediate focus, as they account for a large proportion of energy consumption in processing plants – often between 50 and 90%. By deploying state-of-the-art heat pump technology, manufacturers can capture their waste heat from refrigeration and then boost the temperature to […]