italian innovation: a manufacturing renaissance

ItalianInnovationA Manufacturing Renaissance

ItalianInnovationA Manufacturing Renaissance

Machines ItaliaMachines ItaliaM • A • G • A • Z • I • N • E

1-888-ITALTRADE WWW.MACHINESITALIA.ORG FALL 20041-888-ITALTRADE WWW.MACHINESITALIA.ORG FALL 2004

Why reinvent

Paola Bellusci,Trade Commissioner

Italian Trade CommissionGovernment Agency

Address:401 N. Michigan AvenueSuite 3030Chicago, Illinois 60611-4257

Toll-Free: 1-888-ITALTRADE / 482-5872 (U.S. and Canadian Callers)

Telephone: (312) 670-4360 (outside the U.S. and Canada)

Fax: (312) 264-6209

E-Mail: [email protected]

Web Site:www.machinesitalia.org

2 www.machinesitalia.org

Turning innovation into productivity

What you hold in your hands is a special publication, brought to you by the Italian

Trade Commission in conjunction with the editors of The Manufacturer, which

explores the creativity, flexibility, and innovation of machine manufacturing in Italy. With

famous names such as Ferrari and Lamborghini in the auto industry, and Prada and

Dolce & Gabbana in the fashion world, Italian brands have long been associated with

design and innovation. But did you know that Italy is also the second largest exporter of

pharmaceutical packaging equipment to the United States, or that annually its plastics

machinery exports are in excess of $152 million to this country?

The following pages are filled with the latest news and insightful features that detail the

doings of more than 14 industrial machinery manufacturing sectors and 10,000

companies that encompass Machines Italia: agricultural/farm machinery; ceramics;

earthmoving machinery; food technology; footwear, leathergoods and tanning; foundry

and metallurgical machinery; glass; marble and stone; metalworking; packaging;

plastics and rubber; printing, graphic and converting; textile machinery; and wood.

The cover story on page 12 first digs into the rich history of Italian innovations. For

centuries, Italian innovators like Da Vinci, Galileo and Marconi have dramatically

changed the world in which we live. The tradition of creative excellence they embody

lives on through today’s Italian manufacturers. Jolyon Helterman looks at what is

happening today. In our special feature on global supply chain on page 18, Ruari

McCallion delves into how some Italian companies are bringing better visibility to

operations. Rich Weissman goes into the latest techniques of lean manufacturing, and

how some Italian companies are profiting as a result, on page 23.

There is much happening in the world of Italian machines. Read on for some of the

highlights. We hope you enjoy it.

Sincerely,

Paola BellusciTrade Commissioner—Chicago

thewheel?

OPENING LETTER

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Table of

4 Machines Italia NewsNewsbriefs from a selection of our 10,000 partner companies

8 Through Italian innovation America becomes more competitiveMany American companies seeking competitive advantage have tried to reducecosts by outsourcing or off-shoring their manufacturing

10 Best PracticesBest-practice business guides from Machines Italia can help your company achieve excellence

12 Italian InnovationIf necessity is the mother of invention, Italian is its native tongue. The list ofinventions that began life on Italian soil is long and wholly astounding

18 Global VisionVisibility across the global supply chain isn’t an option—it’s essential in today’sbusiness world

23 Lean Manufacturing Offers Global AppealThe benefits of lean manufacturing are truly international—how manufacturing companies from Italy are contributing

28 Trade Shows in ItalyUpcoming exhibitions in Italy sponsored by our partner associations

30 Industry SummaryA brief look at Machines Italia’s 14 partner associations and industries

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Machines ItalianewsSalvagnini Italia S.p.A.

(www.salvagnini.com) is

a perfect example of a

traditional Italian machinery

manufacturer which actively

seeks new opportunities in a

mature market. Founded

approximately 40 years ago,

Salvagnini is now one of

the largest manufacturers

in Italy’s machine tools

industry. From its early

days, Salvagnini, which now manufactures laser-

cutting, punching and bending machinery, focused on

metal-forming machinery for the air conditioning

industry. However, as that market matured and demand

decreased, Salvagnini’s management and engineers

searched for new applications and new markets.

Salvagnini found its new opportunities in both

niche markets and entirely new industrial sectors. In the

past, Salvagnini machinery had been used in the

production of office furniture, but when demand

dropped, Salvagnini naturally shifted its focus to other

arenas. Although there was still little demand for

machinery used to produce office furniture,

Salvagnini’s management realized that office furniture

was just one aspect of the entire furniture sector. Working

with top Italian interior designers, Salvagnini

partnered with three Italian designers and a design

school and launched its “Steel and Style” project, creating

high-end home furnishings made from steel formed

and fabricated by Salvagnini machinery. In April

2003, the furniture—with new state-of-the-art

designs—was unveiled at a Milan furniture show.

Through this initiative, Salvagnini was introduced to

an entirely new audience of potential customers for its

machinery. Additionally, Salvagnini gave its

traditional customers a vision of new applications and

uses for their machinery.

Salvagnini continues to explore new business

opportunities outside of traditional sectors. It realizes

that the advent of new materials—strong,

lightweight metals with high resistance—will

dramatically reshape the automotive industry and

potentially create new applications for its machinery.

In preparation for this, Salvagnini engineers are

working closely with large foundries and with

universities in Italy and abroad.

Salvagnini finds new opportunities inniche markets and new industrial sectors

MACHINES ITALIA NEWS

News Briefs

Concetti(www.concettigroup.it) is apackaging machinerycompany that created afaster machine to form andfill plastic bags. Concetti’sContinua 1800 is the latestin form-fill-seal packagingmachinery, the newest in aseries of machines thathave been popular withmajor U.S. companies. TheContinua processes 10 to50 kg bags at a rate of1,800 bags an hour—oneof the fastest on the market.Change-over times havebeen reduced to twominutes or less, allowingfor increased productioncapabilities.

Italian machinerymanufacturers offer biginnovations in theaerospace industry. Italianmachinery manufacturerssolved the problems thatgrounded the military useof tiltrotor aircraft and arenow moving these vehiclesto civilian markets. Italiancompanies created thelatest Mars orbiter androver, which was launchedJune 2003. Italy’s latesthelicopter designs arebeing used by some of theleading search and rescuemissions.

5www.machinesitalia.org

SACMI Imola (www.sacmi.com) is

another Italian company discovering that

meeting market needs often leads to new

applications in less-traditional industrial

sectors. Founded in 1919, SACMI is

comprised of three main divisions:

injection-filled machinery, ceramics and

beverages/packaging. Although SACMI

is well known for its ability to build the

entire line of closure machines—from the

creation of the closure to the packaging of

the final product—it faces strong

competition from other manufacturers

across the globe.

Because of this competition, SACMI

continually looks for new ways to add

value for its customers and this focus has

led to the development of innovative new

equipment that not only benefits its

traditional customers, but also may allow

SACMI to enter new markets. One of

these machines, introduced in February

2003, is an infrared device that can

measure the level and “taste” of the fluid

in fruits (such as apples, melons, pears or

oranges) before they are packaged.

Another machine being developed by

SACMI will function as an “electronic

nose” that can “smell” coffee beans to

detect their level of bitterness. These

technologies will introduce SACMI

customers to the latest in quality and

freshness control measures and SACMI’s

R&D department is currently exploring

applications for both of these devices in

the medical field.

SACMI’s focus on added valueleads to innovation

Duluth, GA-based SCM Group USA

(www.scmgroup-usa.com), a leader in

manufacturing woodworking machinery and

subsidiary of Rimini, Italy-based SCM Group is

dedicated to ongoing training which led to its

collaboration with Georgia Tech (College of

Architecture) and the State of Georgia to establish

the Advanced Wood Products Laboratory (AWPL) at

Georgia Tech. Manufacturers from across the

country participate in introductory and advanced

CNC programming, machine-side training and

targeted managerial training workshops. Since its

inception in 2000, through an equipment loan

agreement, SCM placed 16 SCM Machine Centers

at Georgia Tech.

ATOM S.p.A. (www.atom.it) originated as a

manufacturer of cutting machinery for the footwear

industry. However, a changing marketplace led

ATOM to expand into new markets. ATOM now

develops cutting machinery for footwear; insulating

materials; foam packaging and carpets. They also

developed a water-cutting machine used by a luxury

car manufacturer for leather interiors.

Advanced WoodProducts Laboratoryoffers targeted classes

ATOM S.p.A. shows flexibility by addingnew markets

MACHINES ITALIA NEWS


Forty years ago, Cannon S.p.A

(www.cannon.it), a family-owned

company, started manufacturing

polyurethane foam machinery. Since

then, Cannon has diversified and

grown into a multinational company

(their U.S. office located near

Pittsburgh, PA, became a manu-

facturing facility in 1980) with sales

reaching $340 million in 2002.

Cannon attributes much of its success

to its strong commitment to research

and development, not just the R&D

behind machinery, but of new markets.

As a global company, Cannon

realized that its success would hinge on

bringing the right products to the right

markets at the right time. This led

Cannon to produce machinery for

several industrial sectors—such as

refrigeration, automotive, furniture,

construction and packaging. Cannon

has moved from being solely a

manufacturer of polyurethane foam

machinery into the plastics industry,

having patented a gas-injection

application used to make plastic parts

for refrigerators. But as is often the case

in a mature market, companies like

Cannon sometimes find that a fresh

take or a new application for an older

product line can increase sales.

While plastics remains Cannon’s

main focus overseas, U.S. markets have

driven the creation of new applications

for its polyurethane foam machinery.

Working with a major U.S. customer,

Cannon has developed an innovative

method to insulate pipes with poly-

urethane foam. This new application

will allow Cannon’s U.S. customers to

develop home-cooling systems to reduce

temperatures without the use and

expense of air-conditioning.

Cannon finds new applicationsfor existing product line Nordmeccanica S.p.A. (www.nordmeccanica.com), a

packaging company, has created a new solventless

packaging machine. Lawson Mardon USA Inc., an Alcan

Packaging Company, purchased Nordmeccanica’s

Duplex Compact SL off-line solventless laminating

machine because Lawson needed to deliver flatter, clearer

packaged products to one of its biggest customers. The

Nordmeccanica machine doubled Lawson’s pro-

duction capabilities, reduced waste, and saved energy.

Low-E (low emissivity) glass became popular for its energy

efficiency, but due to its complexity, traditional glass-cutting

machinery could not cut low-e glass without destroying the

invisible coating on the glass’s surface. Lovati Fratelli

S.r.l. (www.lovatifratelli.com) and Bottero S.p.A.

(www.bottero.com) introduced machinery that can cut this

glass. Popular in Europe, this glass is being used in more

homes and businesses along America’s coasts.

In November, 2002, Sogefi S.p.A. (www.sogefi.it),

an Italian automotive parts manufacturer, invested

$27 million to build a new facility in West Virginia,

creating nearly 150 new jobs. As West Virginia

Governor Bob Wise said, “Automotive manufacturing

facilities, such as Sogefi, have strong economic

impact potential to the state by creating quality jobs

at their own facilities as well as creating spin-off

employment and payroll at supplying companies.”

W. Virginia plant creates jobs

Advanced Italian glass cuttingmachinery gains popularity

Nordmeccanica machine doublesLawson’s production capabilities

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News Briefs

Italian manufacturerscapitalized on a major U.S.manufacturer’s aggressivepush into the wind-powermarket by designing andbuilding larger generatorsthat offered moreefficiency and highertolerances than thoseproduced by othercountries. As a result, thecompany has reliedalmost exclusively onItalian generators sincethe late 1980s.

Italian farm equipmentmanufacturers broke intothe tight U.S. tractormarket by focusing theirefforts on smaller, 20- to40-horsepower tractors,ideal for the two fastestgrowing farmingsegments—hobby farmersand specialty cropproducers who sell to local markets.

Santoni S.p.A. (www.santoni.com)

developed the first electric,

circular knitting machine, giving

birth to the “seamless” technology

in which entire articles of clothing

are knit from a single yarn. This

technology changed the American

fashion landscape to promote

new designs. Italian textile machin-

ery manufacturers, like Santoni,

are now introducing innovative

machinery, including: multi-purpose

weaving machines suited for

processing the most valuable natural

materials and glass fibers; laser

finishing treatments for ready-made

garments; hi-tech, continuous dye-

ing lines for denim wraps; fully

automated hank-dyeing lines; and

equipment for the finishing of

industrial textiles.

Santoni—changing American fashion

Established in 1955, Italian manufacturer Tria

S.p.A. (www.tria.it) built its entire business around

a niche market—the design and manufacture of

machinery for the in- and off-line recovery of plastic

scraps. Basically, Tria machinery gathers and

collects the scraps produced by other machinery,

such as an injection-molding plants, to increase

efficiency and reduce product waste. According to

Tria’s Managing Director Luciano Anceschi, 40

percent of plastic scraps can be recycled and reused,

turning what was once waste into an excellent

return on investment.

Tria turns scrap into return on investment

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Many American companies seeking competitiveadvantage have tried to reduce costs byoutsourcing or off-shoring their manufacturing.But the practice has come under firerecently—both from politicians seeking popularsupport in an election year and die-hardsupporters of American business, Donald A.Goodwin reports

Why? Because the outsourcing or off-shoring

trend does not always deliver on promised

cost-savings—and because it brings significant risks.

Consider for a moment:

• Hidden costs. While labor savings can be

considerable, they must be weighed against the

real cost of doing business half a world away. A

recent Wall Street Journal article quotes an official

with TransOceanic Shipping Co., a major U.S.

logistics firm, as saying, “For some companies, the

transportation cost...is so expensive that their

business is no longer commercially viable.” Other

companies have found that international

productivity rates are so low they dramatically

reduce the cost advantage.

• Lack of legal protections. The laws in most low-

cost countries do not protect intellectual property

rights. This means Asian suppliers can “borrow”

proprietary manufacturing processes and use them

to compete against the American companies that

provided them in the first place.

• Changing market dynamics. Cost advantages can

erode dramatically. The demand for labor has

Through Italian Americabecomes grown so quickly in some markets that the 10-to-1

cost advantage has been halved in just a few years.

For all these reasons, a growing number of U.S.

companies are seeking domestic alternatives to

outsourcing or off-shoring. And there are many

opportunities available.

Why? Because the U.S. has done little to embrace

efficiency-producing workplace automation. The U.S.

has, for example, a fraction of the manufacturing

robots used in either Europe or Japan—where

companies have been forced to increase efficiency

because of a consistent decrease in population.

The Automation OptionA critical part of any lean manufacturing strategy is

picking the optimum combination of labor, capital and

materials for a particular product. Often overlooked in

the mix is more intensive use of capital machinery and

automation. American businesses tend to rely more

heavily on labor in the production mix than do other

countries. This explains why U.S. companies embrace

the replacement of high-cost U.S. labor with low-cost

labor from Asia.

Higher levels of automation are necessary in

developed countries to maintain the “manufacturing

multiplier” that generates value for the economy and

to drive innovation. Europe and Japan have

embraced automation, recognizing that it is

necessary to remain competitive. Just one look at

U.N. statistics should be enough. The U.S. has a

population of manufacturing robots that is less than

one-third the size of either Europe’s or Japan’s.

INDUSTRY ANALYSIS


innovation more competitive

European and Japanese manufacturers each

purchase two to three times more automation

equipment per year than their U.S. counterparts.

Italian textile machinery manufacturers such as

Santoni S.p.A. (www.santoni.com), for example,

are now introducing automation machinery such as

multipurpose weaving machines suited for

processing valuable natural materials and glass

fibers, laser finishing treatments for ready-made

garments, high-tech continuous dyeing lines for

denim wraps and fully-automated hank-dyeing lines.

One way for U.S. companies to catch up is to

consider new sources for machine tools from these

countries that depend heavily on automation. These

sources can provide state-of-the-art capabilities and

experience to help U.S. companies move to the next

levels of automation and productivity.

The aerospace industry is a hotly contested

market with only a few global airframe builders and

a few engine builders remaining. Acquiring the

most productive machinery available is crucial for

their continued survival. One example of machines

available for better productivity is the precision

vertical turning, milling and grinding centers

available from Pietro Carnaghi S.p.A.

(www.pietrocarnaghi.com) of Italy for the production

of turbine blades. This multiple function unit can

produce new blades to exacting tolerances and also

bring old blades back into tolerance. These machines

are used by the leading turbine engine manufacturers

and subcontractors throughout the world.

Another Italian producer, JOBS S.p.A.

(www.jobs.it), produces high-speed, high-power milling

centers for the aerospace industry. It has the ability to

manufacture complex large-scale precision airframe

structural components. This allows airframe builders to

reduce part counts, weight and assembly time.

These suppliers and other Italian companies are

positioned to help U.S. companies compete more

effectively in the global economy.

Boeing’s Delta IV relied on technology from Pietro Carnaghi. Image courtesy of Boeing.

Donald A. Goodwin is President of Technomic International,(www.technomics.com)a business intelligence and con-sulting firm with over three decades of domestic andinternational experience which has worked for leadingcompanies in a wide variety of manufacturing industries.


Machines Italia, a joint initiative between the Italian Trade

Commission and 14 leading Italian machinery manufacturers’

associations, is proud to make available to this publication’s readers

a complimentary series of four best-practices business guides.

The guides written by industry experts John R. Brandt and

George Taninecz, both of the Manufacturing Performance Institute,

outline the step-by-step actions and policies that plant managers,

purchasing executives, and senior management must implement to

avoid the common pitfalls which can impede a company’s growth and

success in today’s dynamic marketplace.

“SMART CAPITAL: THE SHARP MANUFACTURER’S

GUIDE TO EQUIPMENT PURCHASES”

More than $143 billion was spent on capital expenditures by U.S.

manufacturers in 2001, representing about $400,000 per

manufacturing facility or $2.8 million per purchasing executive

(purchasing agents and purchasing managers). Yet many of those

investment decisions were made by purchasing departments with

little or no input from operations executives. Equally disturbing is that

a significant number of these purchases came directly from the plant

floor, without any real involvement of either local or corporate

purchasing departments.

Purchasing capital equipment without the active participation of

operations personnel inevitably leads to decisions based only on price

- often with disastrous consequences. On the other hand, investing in

capital equipment without the expertise of a corporate purchasing

department often results in organization-wide inefficiencies including

overpayment, missed economies of scale, and lack of integration

between facilities and business units.

Smart manufacturers avoid such pitfalls by assembling a

capital-purchase team that combines the broad skills of

purchasing and manufacturing, as well as the strategic input of

senior executives.

Bestpractices“BENCHMARKING: AN EXECUTIVE PRIMER TO

LOCATING AND LEVERAGING MANUFACTURING

BEST PRACTICES”

Envy may be one of the seven deadly sins, but its presence is vital

when it comes to operations performance. Every executive wants

his or her company or plant to be at least as good as those of his or

her peers; most, in fact, want them to be better-or even the best.

Unfortunately, it takes more than simple desire to be the best.

Outperforming competitors requires an intense study of those

competitors-of their financial results, of their operating metrics, of their

management strategies and practices-as well as a willingness to invest

time, energy, and resources into adapting the results of that study to a

new operations environment.

In short, every great performance, every continuous-improvement

project, begins with a benchmark. Leading manufacturing facilities

annually save on average more than $8,000 per employee through

continuous-improvement projects and programs, and benchmarking is

a core component of that success. And while no two organizations

benchmark in the same fashion, there are four fundamental phases that

manufacturing organizations must address in order to get the most out

of a benchmarking effort.

“POWERFUL PERFORMANCE MEASURES:

AN EXECUTIVE PRIMER TO PERFORMANCE

MEASURES THAT DRIVE IMPROVEMENT”

Every organization has its favorite metrics measurements that gauge

control, progress, and success. At a world-class organization, these

measures serve as a common “performance language” that links

corporate strategy, divisional goals, plant targets, departmental

budgets, and individual incentives into a unified, results-oriented

system. But at a mediocre or failing organization, these measures

usually turn into management babble and confusion reams of records

and disjointed findings tracked simply because “that’s what we’ve

111-888-ITALTRADE

always done.” Metrics at these organizations become restraints that

actually waste resources, aggravate employees, and block improvement.

How can companies break out of the metrics maze and develop

a more successful performance-management process? By focusing

executive effort on what makes performance measures powerful

and useful and by implementing a seven-step review that

continuously analyzes, updates, and transitions new and better

metrics into the organization.

“CAPACITY OPTIMIZATION: A MANUFACTURER’S

GUIDE FOR GETTING THE MOST OUT OF

EQUIPMENT, PEOPLE, AND PROCESSES”

The ability to squeeze every ounce of productivity from existing

operations can mean thousands of dollars in savings. Yet many

companies still confuse productivity with increased output—forgetting

than profitable productivity not only increases margins but prevents

costly overproduction. Savvy manufacturers focus instead on capacity

optimization—the ability to efficiently produce exactly what’s needed,

when it’s needed, without costly buildups of unwanted inventories.

If you make the purchasing decisions for your company, youhave an enormous responsibility. You must know the ins andouts of production in a way no one else does—findingmachines and systems solutions that are functional, reliableand durable, with readily available service and spare parts. Youdecide whether the return on investment can ultimately berealized. In short, much of your company’s success depends onyour purchasing choices. Italian machinery can make yourdecision easier.

That’s why this year Machines Italia is proud to be one of thecorporate sponsors of the Association for ManufacturingExcellence’s 20th Anniversary Conference, being held inCincinnati, Ohio from October 18th to 22nd, 2004 as well as an exhibitor at the concurrent trade show, AdvancedManufacturing & Productivity Exposition (AM-Expo)2004 (October 19th-21st, 2004).

Both the conference and expo share the common goal ofstriving to improve global competitiveness within the

manufacturing industry, presenting technological advances,workshops and education on best practices. In keeping withthis aim, Machines Italia will present the latest information onits partner associations and companies at these events.

At our booth #217 in the Northern Kentucky ConventionCenter (Covington, KY), Machines Italia representatives will beon hand to help you find the right partners and manufacturerswho can administer to your most challenging and specificproduction needs. You will be able to find information on theworld’s most highly skilled engineers, designers andmanufacturers who always turn innovation into productivityeither by re-tooling existing concepts or by creating entirelynew systems not yet imagined.

While the conference will address a variety of issues affectingglobal enterprise excellence, Machines Italia will provide visitorswith case histories, industry white papers and currentinformation on what Italian machinery manufacturers are doinghere in North America to keep local manufacturers productive.

Association for Manufacturing Excellence’s20th Anniversary Conference and Trade ShowCincinnati, OHOctober 18-22, 2004

Visit Machines Italiaat booth #217

For more information, please visit: www.ame.org/conf2004/

For your complimentary copy or copies of best-practices

business guides contact us directly at 888-ITALTRADE (482-5872),

email [email protected] or through our “Media Center” on

www.machinesitalia.org where you will find them as well as

featured case histories, news articles, etc., showing how we are

“Turning Innovation into Productivity” for numerous North

American based manufacturers.

We hope that once you have had a chance to review these

guides you will find them beneficial for your company’s needs

and that when making future purchasing decisions, you will

consider at least a few of the tens of thousands Italian

manufacturers who are members of our 14 partner Italian

machinery manufacturers’ associations.

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If necessity is the mother of invention, Italian isits native tongue. The first maritime compass?Flavio Giola. The thermometer? Galileo Galilei.The radio? Guglielmo Marconi. Alessandro Voltaand the battery, Salvino D’Armate andeyeglasses, Pellegrino Turri and the typewriter—the list of inventions that began life on Italiansoil is long and wholly astounding.

Knowing what to do with a machine can be as

valuable as dreaming it up. A Dutchman, Hans

Lippershey, built the telescope in 1608. But the

contraption sat, useless, for an entire year until it

occurred to an Italian (Galileo) to point it up toward

the stars. The architect Filippo Brunelleschi, tired of

unrealistic-looking blueprints, devised the theory of

linear perspective; Masaccio, a fellow Florentine, was

the first to use it to give the illustion of depth in a

painting. Bartolomeo Cristofori grew fatigued with the

incessant plucking sound of the harpsichord and

decided to do something about it: He created the

world’s first keyboard with volume control: the piano.

Italy’s busiest innovator may have been a man

named Leonardo, who left the tiny Tuscan town of Vinci

to become one of history’s most visionary thinkers.

When he wasn’t tied up making masterpiece of Lisa

Gioconda’s smile or hiding codes in The Last Supper,

Leonardo whiled away the day developing expertise in

music, engineering, anatomy, military science,

astronomy, botany, geology, and more. Depending on the

account, the original Renaissance man counted among

his numerous inventions the parachute, the helicopter,

scissors, and an auto-feed hydraulic saw.

Italianinnovation

ITALIAN INNOVATION

An early compass

Alessandro Volta demonstrates his battery

Alenia Spazio contributes to exploration of Mars


Italy has become synonymous not just with

ingenuity but with unmatched quality. After 300 years,

Stradivarius is still the world’s most-sought-after brand

of string instrument. Ferrari (www.ferrariworld.com),

Lamborghini (www.lamborghini.com), Maserati

(www.maserati.com)—for car buffs, Italy represents the

ultimate in edgy performance and style. Consistent

invention from the likes of Versace (www.versace.com),

Armani (www.armani.com), Dolce & Gabbana

(www.dolcegabbana.com), and Prada (www.prada.com)

is what pushed Milan to displace Paris as the fashion

capital of the world.

But Italy’s most forward-looking innovation today

goes on far removed from the glitzy spectacle of

runway and racetrack. In a country so beloved for its

colorful style, cuisine, and la dolce vita, the Italian

manufacturing sector hums quietly along.

A package dealPrada and ICA S.p.A. (www.icaspa.it)have two things

in common: an Italian headquarters and a flair for

inventive bags. But while Prada’s bejeweled handbags

are destined for the fashion-forward few, ICA’s bagging

machines have revolutionized the packaging industry.

Anyone who’s ever opened up a package of flour

understands implicitly that some materials are more

unwieldy than others. If you’re unsure, try emptying

one onto your counter, then scooping the contents

back into the bag. Now repeat the process about

6,000 times an hour—with minimal spillage—and

you’ll get an idea of ICA’s challenge.

“The ICA line is extremely innovative in bag

forming and filling of difficult-to-handle products,”

said Denton C. Smith, executive vice president of

APM Inc., which handles the Bologna-based

company’s U.S. distribution and service. “Their

equipment is used all over the world in coffee, flour,

rice, bakery, and confectionery packaging.”

One of the keys to packaging efficiency is

completing all production steps in one cycle. Patented

machines like ICA’s HF100C/P automate the process

from the formation of bags out of flat paper to

measuring and filling to the heat-sealed final product.

By saving reloading wait times, labor and production

costs are minimized.

Another challenge is how to deal with products

that release gas after packaging—the most common

example is coffee. Small holes in the package stave

off explosions caused by the extra volume, but aroma

and flavor are compromised. To solve the problem,

ICA’s packaging machines incorporate Aroma

Systems technology—essentially a one-way degassing

valve—to keep shape and flavor intact.

Packaging flour and coffee is hard enough. The task

gets more daunting with increased size and toxicity. APM

also distributes machinery for the Bastia Umbra–based

Concetti Group (www.concettigroup.it), which

“Having private ownership for threegenerations, with the same familyrunning the company, it’s a signal ofcontinuity, which is very highlyappreciated by the market.”

ITALIAN INNOVATION


specializes in machines that package chemicals, animal

feed, and fertilizer. “Many products that Concetti is

running today would have been thought impossible to

run less than a decade ago,” Smith said. Concetti

machinery is built with metals that can withstand the

corrosive effect of toxins, and several lines include

multiple separate chambers that perform duplicate

functions—to avoid cross-contamination dangers.

Smith, based in Norcross, Ga., said ICA and

Concetti have managed to flourish in the U.S.

market despite competition from countries where

labor is cheaper. “Labor costs are certainly a factor in

determining cost and value,” he said. “However,

when buying a custom piece of packaging machinery,

the technical side usually outweighs any labor

savings that would only provide a cheaper cost. Our

success is directly related to innovation.”

Printing: Changing typesAvoiding downtime and mess aren’t a packaging

company’s only concerns. Adorning the packages

with eye-catching labels and colors can be a

budgetary challenge. The highest-quality printing

process is called rotogravure, and it’s also the most

expensive. Since a substantial portion of costs

involves setup and breakdown, rotogravure has

traditionally been an option only for customers in a

position to place large orders. The shorter the press

run, the more prohibitive the costs.

Cerutti S.p.A. (www.cerutti.com), a printing

equipment manufacturer based in Casale Monferrato,

has been working to making rotogravure a feasible

option for more customers. “Rotogravure is

unmatched as far as printing quality,” said Massimo

Genio of Cerutti’s U.S. branch, “but the technology

was out-of-reach for smaller customers—or for larger

customers interested in short runs.” The latter appeal

especially to manufacturers of retail products that

depend heavily on impulse purchasing. “If you go to

the supermarket, you need to be attracted by a

packaging that is one day yellow, another day green,

another day orange. We had to find an innovative

way to be flexible, to give our customers the

possibility to be profitable even in a short-run

market, where a lot of their customers are moving.

For example, Nabisco, Cadbury—all these big, big

names—they tend to change their design more and

more frequently. We had to give our customers a way

of handling those orders.”

Cerutti’s solution, the R970, was the company’s

featured product introduction this past May at

DRUPA, the print-production industry’s quadrennial

international trade show. The company wanted the

product to address three basic challenges, Genio said.

“First is the time you need to change from one

production to the next. The second is the number of

people you hold. The third is the number of

components you have to handle doing this

“I think one important aspect of theItalian culture is to propose not only theproducts, but to place them side-by-side[in front of] the customer and actuallysolve their production problems.”

151-888-ITALTRADE

Above: Cerutti, a printing equipment maker based in CasaleMonferrato, has been working to make rotogravure a feasibleoption for more customers.

changeover.” The R970, he said, succeeds in

streamlining the short-run process on all three fronts.

Cerutti also makes publication press equipment,

and one of its U.S. customers is Quad/Graphics, an

enormous Wisconsin-based press house used by

popular magazines such as Newsweek, People, and

Sports Illustrated. What attracts the printer of some of

America’s highest-circulation periodicals to an Italian

company like Cerutti? According to Genio, it’s

Cerutti’s commitment to keeping up with the

cutting edge of technology—but also the company’s

structure and philosophy.

“Having private ownership for three generations,

with the same family running the company, it’s a

signal of continuity, which is very highly appreciated

by the market,” Genio said. “The Cerutti family

always took pride in meeting and personally

knowing every customer they had—which is not so

usual these days.”

The engines that couldIn 1504, Leonardo da Vinci was hard at work sketching

plans for never-built flying machines. In 2004, Pietro

Carnaghi S.p.A. (www.pietrocarnaghi.com) is hard at

work making vertical lathes used to build actual

flying machines.

The company, based in Villa Cortese, provides

heavy-duty machine-tooling installations for the

aerospace, power-generation, and mechanical

applications industries. Need a vertical lathe with a

capacity of 6/8 meters of workpiece diameter? Not

likely. Unless perhaps you happen to work for the

aerospace manufacturer The Boeing Co., a longtime

customer. Other large companies that depend on

Pietro Carnaghi’s vertical lathes, gantry-type

milling machines, vertical grinding machines, and

fabricated machine parts include the defense

contractor Lockheed Martin Corp., the aircraft-engine

manufacturer Pratt & Whitney, and the construction-

equipment company Caterpillar Inc.

To service such customers adequately, Pietro

Carnaghi’s lathes do offer some of the world’s largest

capacities in machining, as well as the more standard

capacities used to make generators, steam turbines,

and general-mechanics products. But according to

Giuliano Radice, U.S. sales manager for Pietro

Carnaghi and the great-grandson of the man who

started the company, what keeps customers coming

back goes beyond simply shape, size, and power.

“The U.S. market is very exemplifying of the high

added value that our technology provides,” Radice

ITALIAN INNOVATION

16 1-888-ITALTRADE

said. “I think one important aspect of the Italian culture

is to propose not only the products, but to place them

side-by-side [in front of] the customer and actually

solve their production problems.”

What’s more, said Radice, the company is

owned by a family that for generations has

recognized the importance of generous R&D

investment. That philosophy, he adds, helps Pietro

Carnaghi outpace the competition from countries

where labor is cheaper.

“Italian producers know that labor cost

conditions are not playing well in our favor,” Radice

said. “That’s why we always fight to give a ‘plus,’ to

push the technological level to be one step forward of

our competitors. It is appreciated by the high-level

end users that want to have the very latest, very best

performing solutions.”

Totally TubularIn the 14th century, legend has it that Pope Boniface

VIII began vetting candidates to be his new court

painter. When a servant showed up at Giotto’s Tuscan

home to request a sample work, the artist dipped his

brush in paint and—in one, continuous stroke—

produced a perfect circle. Though annoyed by the

apparent act of contempt, the minion brought it back to

his boss, who decided that any artist who could draw a

perfect circle freehand must be the most accomplished

in the land. Giotto was hired on the spot.

Whether the story is fact or fiction, what’s

indisputable is how vividly it illustrates the

appreciation for perfection that remains a defining

characteristic of Italian culture. No wonder that Italy

is home to so many manufacturers devoted to

precision-oriented output.

For example, the BLM Group (www.blmgroup.com),

headquartered in Cantú, is currently the largest supplier

of metal tube fabricating equipment in Europe. The

company has made considerable strides penetrating the

U.S. market since it set out to do so in 2001, and its

equipment has attracted several high-profile

customers—including a market leader in the motorcycle

and ATV (all-terrain vehicle) industry. Other

manufacturers that use BLM’s precision installations

include makers of hospital beds, wheelchairs, lawn and

gardening equipment, and snowmobiles.

If you’ve never had to fabricate extremely precise

tubes, you’re not alone. Suffice it to say that Giotto’s

precocious-eyeballing method wouldn’t have cut it

here. At the very basic level, it breaks down like this,

said Jim Rutt, president and chief operating officer of

BLM Group USA, in Wixom, Mich. “Let’s say you

take a 2-inch-diameter tube and you try to put a

simple 90-degree bend in it. Because of the

“[Italian producers] always fight to givea ‘plus,’ to push the technological level tobe one step forward of our competitors. Itis appreciated by the high-level end usersthat want to have the very latest, verybest performing solutions.”


characteristics of the material, when you bend it in the

bender, then release it, it will tend to spring back so that

the actual bend may be closer to, say, 89.5 degrees.”

Good enough to land a court-artist gig, perhaps,

but not to ensure accuracy in subsequent procedures.

“So now, let’s say you need a quarter-inch-diameter

hole in the tube that has to meet up—precisely—with

another tube: If you had cut a hole in the tube before

bending, the specifications would be off,” he said. The

solution, the company realized, was to cut the hole

after the bending process.

Because cutting what’s virtually a two-

dimensional prebent tube is much easier than

negotiating a bent one, BLM Group recently

developed the Model LT905, an automated laser-

based tube-cutting system that specializes in handling

prebent tubes. “When we’re cutting tubes that have

been bent before the cutting process, the LT905 acts

under computer control—it has a touch probe—and

defines in place exactly where that tube is. So after it

touches both ends of our ‘90-degree’ tube, it knows

that the actual degree of bend is actually only 89.5

and can adjust the cutting accordingly.”

The new technology has been a success, said Rutt.

Recently, a supplier of muffler and exhaust-system

parts to one well-known high-performance German

automaker has adopted the LT905 to ramp up the

precision of its fabricated-tube offerings.

And the innovation continues...Lovati Fratelli S.r.l. (www.lovatifratelli.com),

based near Milan, has found a way to bring age-old

artisanal glassblowing techniques into the future

with robot-automated grinding, handling, and

polishing technologies. Nordmeccanica S.p.A.

(www.nordmeccanica.com), based in Piacenza, recently

helped the Bellwood, Ill., company Lawson Mardon USA

Inc. produce flatter, clearer food-product packaging to

meet its competition head-on. FATA Aluminium

S.p.A. (www.fataaluminium.com), based in Rivoli, was

the only company in the foundry tooling and machinery

industry whose casting lines could muster the daunting

performance and size specifications that General Motors

Corp. demanded in a recent production overhaul.

The list of Italian companies offering

technological advances above and beyond their global

competition is growing every day. And savvy U.S.

manufacturers are clearly beginning to catch on.

Above: Pietro Carnaghi S.p.A. is hard at work making vertical lathes used to build actual flying machines.

Keeping an

GLOBAL VISIBILITY


Visibility across the global supply chain isn’t anoption—it’s an essential element in today’s businessworld. Ruari McCallion finds out how Italianmachine manufacturers are accomplishing this feat.

There’s a Disney song that tunefully tells us that it’s a

small world. And if that’s true in the entertainment

business, then it’s even more the case in industry and

manufacturing. There are those who would assure you

that it’s possible to run a ‘lights out’ factory in China from

a desktop PC in Chattanooga. That may be stretching the

envelope a little, right now, but not much.

“You can have a great deal of visibility to whatever

goes on—right to the factory floor. You can check an

order was received on such-and-such a date, was

shipped then, here’s the container and the tracking

record. That’s the power of the Web,” said Chris Heim,

president of HighJump software, a 3M company. The

demand is definitely there. The extension of supply

chains across the globe—and the need to keep stocks to

a minimum, in order to minimize the capital tied up in

inventory—has emphasized the need for visibility, right

from raw material to delivery of finished product into the

customer’s hands. Nearly 60% of web-based customers

and partners now monitor the status of their orders

during shipping. But is it really essential or is it just a case

that information and management-obsessed

organizations just can’t let things take their course?

“Part of it is the ‘Amazon effect’,” Mr. Heim said. “You

bought some books on the Net and you’re able to track

it all the way through from the warehouse to your front

door. You expect to get the same thing in the

workplace—especially as people try to drive inventory

out of the supply chain.” But supply chains used to be

very short, and a phone call would elicit information

about the whereabouts of an order from a vendor who

was based 20 miles away. An emergency order could be

supplied, quite possibly, within a day, at a price. Vendors

eye on supply

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may now be thousands of miles away, across an ocean or

two and half a continent.

“You have to have the visibility and you need a great

deal of planning,” Mr. Heim said. “If you have a 45-day

lead time, you need to know 45 days ahead what’s

going on in your suppliers’ factories. The need is for

greater linkages and the problem is how those linkages

are established to get information automatically and

overcome the problems of human error, like forgetting

to order.” The reality is that visibility is probably greater

now than it has ever been, even though the distances

have become greater. It’s also the case that it can get

even better.

Between OEM and Tier One, the connections are

well established, most likely through EDI. But EDI is

expensive, and it gets more expensive the further back

the supply chain you go. EDI has its advantages: it’s

secure, it’s instant and it’s as comprehensive as the

parties want it to be. But its security means that, the

more customers a supplier has, the more it needs to

spend. Disparate operating environments are

problematic, time consuming and tedious: there’s a lot of

commitment and investment involved in connecting

different operating systems to each other. There is

another way: the Internet. The Web browser is the

common platform that software vendors have talked

about for years. Even little jobshops in the boondocks of

the developing world can communicate instantly,

through a desktop PC and the Internet. The perceived

problem is security, of course.

“There has been a great deal of progress in security

on the Internet,” Mr. Heim said. At a very basic level,

people are prepared to share credit card information with

on-line shops and suppliers. “Yes, EDI is secure but it’s a

huge effort to make every linkage—and the small guy in

China is never going to do it, he’ll never get there. The

Web allows you to speak to each other.”

The question arises: does the level of visibility that’s

now available convey an advantage, or has it become an

essential block on the structure of business? The reality

is that it depends on the nature of the business. If you’re

a third-party logistics provider, for example, then your

customers will expect you to be able to tell them what’s

happening with their consignments, at any time of the

day or night. So they need the tools to deliver on their

promise to be an extension of your business.

Organizations with maturity in the supply chain need to

have the visibility, also. Consider an auto manufacturer,

relying on JIT and scheduled lineside delivery. The

whole process would quickly collapse into chaos without

real-time, end to end visibility, 24/7 and Ford wouldn’t

have been able to make the headway that has brought it

back into strong profitability in the first quarter of 2004.

Not everyone is in the same position.

“The spares side of our operation is very important.

There are machines of ours in use today that date back

to 1974,” said Jackie Rose, spare parts manager for

Cannon USA (www.cannon.it), whose global

headquarters and main manufacturing plant is located

near Venice, Italy. It deals in technology and equipment

for polyurethane applications and its U.S. head office is

in Cranberry Township, PA. The service and

maintenance operation depends upon technicians and

service engineers who travel all across the U.S., Canada

and Mexico. New machines automatically get commis-

sioning and initial service and maintenance support and

the company keeps stock of spares at Cranberry.

“Typically, our computer system plays a big role. It

GLOBAL VISIBILITY


sets minimum and maximum levels of inventory, we run

weekly reports and restock when levels fall below

minimum,” she said. Approximately 70% of the

company’s spares inventory by U.S.$ value is supplied

from its Italian parent. “Some components are kind of

unique to our equipment. Regular orders are fulfilled on

a regular schedule: the computer program calculates

needs and places the order automatically. We use a Web-

based system with our parent company and order

directly through the Internet. An automatic report

confirms our order to our purchasing agent and we

receive shipments three times a month.” The level of

visibility isn’t at the ‘Amazon’ level but it probably doesn’t

have to be—at the moment.

“We use two freight carriers and they send us pre-

alerts, which advise the items that are coming and their

tracking numbers. They give us a ‘heads up’ as soon as

the parent company advises of shipping,” Ms. Rose said.

“We get confirmation and estimated delivery date and

they’re normally accurate. If something is urgent, we use

e-mail to communicate.” The system works quite

smoothly and exceptions are dealt with through e-mail

and phone. Trade routes between the US and Europe are

pretty well established but new times bring new

problems. There are anti-dumping laws that exclude

certain items or require more documentation—especially

on computer components and bearings, which also carry

tariffs of anywhere between four per cent and 50%.

“There are stricter policies on certain components and

we are at the mercy of our suppliers to ensure the

documentation has all been completed,” she observed.

“As we go higher up the market, our machines get

more customized,” said Dr. Giordano Checchi, CEO of

SCM Group USA, Inc. (www.scmgroup-usa.com),

which is based in Duluth, Georgia. The U.S. operation is

a distributor of specialist woodworking machinery,

ranging from standard equipment to high accuracy CNC

machining centers. The lower end equipment is

manufactured in Taiwan; the more complex products are

produced by its parent company, SCM Group

(www.scmgroup.com), which is based in Rimini, Italy. “If

a customer is investing $800,000 to $1 million in a piece

of machinery, the more they want customized, so we

can’t carry much inventory.” Sales orders and dis-

tribution are handled through business managers, each

directly in touch with their production managers in Italy.

“Visibility from our end is limited: we can’t look at the

shopfloor in Italy, but the Rimini factory can look at our

order situation,” Dr. Checchi said. “Orders are generated

in different markets—here and across the world—and

worked back to scheduling in the factory. When we’re

involved in sales negotiations with a customer, we always

inquire from Italy what the schedule is—it’s part of our

offer to our customers, we get that information before the

order.” The distribution within the U.S. is the

responsibility of SCM Group USA and it is able to see

clearly what is going on. “Our regional managers work

with our regional distributors and deal with them at a

personal level. Orders come in electronically and are

loaded directly onto our ERP system.”

Effective distribution is always dependent on a good

warehouse management system. Dichtomatik, which is

also European-owned, supplies custom-built rubber

molded O-rings, for everything from a pen to heavy

construction machinery, to the OEM market. It carries

over 20,000 SKUs and holds over 6,500,000 units of

inventory at its Minneapolis facility, and the

management of them is the responsibility of Dennis

211-888-ITALTRADE

Bollinger, director of distribution operations.

“We want to keep our inventory to a minimum but

99.9% of our goods are imported. With a lead time of 60

days, we have to maintain a large stock,” he said. “Our

big customers give us annual forecasts but we also get

people coming in ‘out of the blue’, so we cover with a

little extra for them.” Suppliers send Dichtomatik an

electronic advice of shipping notice, with a complete list

of items. When the container comes in, with 48 pallets

on board, the ‘license plate’ is scanned; that confirms the

contents and automatically updates the central system,

which is HighJump Advantage, modified to

Dichtomatik’s needs. “It goes into pick and pack

instantly. We check in 350 to 500 orders a day, averaging

three-and-a-half line items each, and we ship 100% on

same-day turnaround. Five to 10 years ago, prior to the

installation of our warehouse management system, it

used to take five to six days to receive goods inwards.

Now, we receive the container, quality control it and it

takes three days at most. The greater efficiency, reliability

and visibility has enabled us to triple sales, improve

efficiency and reduce the labor cost element.”

Global visibility isn’t just a question of monitoring

goods through the distribution chain. Supplies that come

from all over the world are being designed all over the

world, also. Responsiveness to market demands requires

that products are constantly subject to redesign—

whether to meet market demands or exploit

opportunities to improve efficiencies.

“3D modeling on computer is much more intense

and it really delivers speed downstream,” said David

Raffo, principal of Raffo Design Associates, which is

based in Chester, England, and has clients all over

Europe, in the USA and across the world. “Changes can

be made very quickly, although complex models aren’t

always easy to amend. Changing the shape and size of a

product can take quite a lot of work.” But ‘quite a lot of

work’ isn’t the same as it was 20 years ago, when

blueprints made their leisurely way from OEM to

supplier and back again through the post or by courier.

“Shareware creates transparency and you can see who’s

holding everything up. When different people in

different places are interacting, you need to keep track of

who changed what, and who was the last person to do

something, what is the current model, and control

matters of access and authorization.”

Cross-border collaboration, over huge distances, is a

reality. Airbus Industrie, a partnership involving Italy,

Germany, the United Kingdom, Spain, and France, and

using suppliers from the U.S. and other parts of the

world, uses Parametric Technology CAD. When Ferrari’s

Grand Prix auto racing team began its resurgence, its car

was designed in England and built in Italy. Menard

“If you have a 45-day lead time, you needto know 45 days ahead what’s going onin your suppliers’ factories. The need isfor greater linkages and the problem ishow those linkages are established to getinformation automatically and overcomethe problems of human error, likeforgetting to order.”

Electronic Warfare System components and assem-

blies. Piaggio Aero is also providing high-speed

machining and a Rudder Torque Tube. Meanwhile,

Aerea is involved with launcher production, fuel-

system valve manufacturing, as well as Fuselage

Remote Interface Unit chassis machining.

Other Italian companies involved with the

development of the JSF include Marconi Selenia

Communications S.p.A. (www.marconiselenia.com),

which is providing emergency UHF radio systems, while

Sirio Panel S.p.A. (www.siriopanel.it) is making

cockpit panels and lights. Secondo Mona S.p.A.

(www.secondomona.com) is working on ice detection

equipment, while another Italian company is building

life-support systems. Mecaer S.p.A. (www.mecaer.it)

and OMA S.p.A. (Officine Meccaniche

Aeronautiche) (www.omafoligno.it) are working

on various Nose Landing Gear components, Moog

Italiana S.r.l (www.moog.it) on actuation com-

ponents, and Oto Melara S.p.A. (www.otomelara.it) on

gun production.

World-spanning collaboration is becoming more

widespread, creating new challenges for supply chain

visibility. “In five years time, I expect to see RFID allow us

to track production from creation to consumption.

Demand signals will be flowing at all times and visibility

throughout the supply chain will reach all the way down

to individual packages. It will be like the nerve signals that

travel up and down the human body, stimulating actions

and reactions, maybe sub-assembly in China, final

assembly in Mexico, with added parts from Central

America,” Chris Heim said. “We won’t shorten shipping

time—but we’ll see a more and more complex supply

chain and have the tools needed for complete visibility.”

GLOBAL VISIBILITY


Engineering Limited has a virtual reality studio that can

host presentations and launch events with participants

from all over the world. It’s clear that such international

collaboration is only going to grow as time goes on.

For example, in 2002, Italy joined a number of

nations, including the United Kingdom, Canada,

Denmark, the Netherlands, and Norway, which are

participating in the development of the cutting-

edge F-35 Joint Strike Fighter (JSF) aircraft, as part

of an international team led by Lockheed Martin

Aeronautics Co., a division of Lockheed Martin

Corp. These countries, since they are participating

in the decade-long System Development and

Demonstration (SDD) phase of the JSF program, will

have the opportunity to supply parts and systems,

and influence the aircraft’s design and capabilities.

During the program’s SDD phase, Italy alone will

contribute approximately $1 billion to the JSF’s

development. Several Italian companies are collaborating

in the effort, and a number of Italian engineers and

managers are currently on site at Lockheed Martin in Fort

Worth, TX, where the principal design activities and final

assembly are taking place. A leading company is Alenia

Aeronautica S.p.A. (www.alenia-aeronautica.it/),

who is working on composite wing production and is part

of the Integrated Product Team, which also includes

Italian companies Datamat S.p.A. (www.datamat.it),

Galileo Avionica (www.galileoavionica.it), PIAGGIO

AERO Industries (www.piaggioaero.com) and

AEREA S.p.A. (www.aerea.it), providing engineering

and design participation.

Galileo is providing a number of components,

including Electro-Optical Targeting System vacuum

cells, Multi-Function Display components, and

Lean manufacturing

231-888-ITALTRADE

Lean manufacturing is a phenomenon that continues

to gain momentum with companies around the

globe, improving the operational, financial, and

customer service performance of adopting

organizations. Manufacturing companies don’t become

lean overnight, and many experts feel that some of the

greatest rewards of lean lie in the journey of continuous

improvement. Lean manufacturing is an evolutionary

process and a company wide positive attitude and

honest self-analysis are important.

All companies can begin the lean process by

concentrating on the critical areas of their business.

The positive aspects of lean manufacturing are truly international. Rich Weissman discusses howmanufacturing companies from Italy such as BLM are contributing.

By maintaining a strong customer focus, evaluating

and adjusting manufacturing processes, integrating

the supply chain into operations, and improving

organizational effectiveness, companies can

experience the benefits of lean almost instantly. Lean

success is best viewed incrementally. Many small

improvements add up quickly, allowing for a ramp up

of enthusiasm and the desire to see even more

improvements. Lean is contagious.

All manufacturing companies share basic

competitive priorities, including manufacturing products

at the lowest total cost, delivery that meets customer

offersglobal appeal

BLM’s equipment is like a work cell in and of itself

LEAN MANUFACTURING


requirements, high quality products and services,

efficient service levels, and organizational flexibility.

Lean manufacturing, with its emphasis of cost reduction

through the elimination of waste, process simplification,

and employee involvement, allows for companies to

meet these competitive priorities.

The front end of lean manufacturing needs to focus

on the customer. Without completely understanding the

business and technical requirements of their customers,

organizations cannot align their operations effectively.

The lean process begins before accepting the sales order.

Through processes such as Quality Function Deployment

(QFD), a systematic way to capture and integrate

customer product requirements, specific criteria can be

integrated into the design of products. Completely

understanding product requirements at the design phase

helps eliminate waste and improve quality during the

manufacturing phase. Improved product design centers

on utilizing standard product configurations, reducing

the amount of part numbers through standardization

and simplification, and incorporating process design

with product design.

Once the customer order is booked, the focus

turns to the manufacturing process. The key

elements of lean manufacturing include designing a

process flow, improving product quality, establishing

a stable manufacturing schedule, utilizing a kanban

or demand flow process, integrating the supply chain

into operations, aggressively managing inventory,

improving product design, and encouraging

employee involvement.

The design of the manufacturing flow is often

viewed as the critical component of lean manufacturing.

It may also be the most disruptive to the factory. Many

factories are moving to cellular manufacturing, with its

dedicated work areas that incorporate all of the tooling,

inventory and documentation necessary to build a

product or sub assembly. Cellular manufacturing

typically increases manufacturing throughput, reduces

manufacturing cycle time, and improves product quality,

due in part to a specifically trained employee who

maintains and operates the work cell. Group technology,

the grouping of like equipment in a machine shop, also

assists in improving production flow. Maximizing the

floor layout in any manufacturing facility results in the

need for less manufacturing space, saving overhead costs

and reducing the need for facility expansion.

Some manufacturers are not only lean, but they

support lean manufacturing with the type of equipment

they produce. BLM Group (www.blmgroup.com) of

• Maintain a customer focus

• Design a process flow

• Become compulsive on quality

• Balance the production schedule

• Incorporate a pull system

• Integrate the supply chain into operations

• Reduce and manage inventories

• Improve product design through collaboration

• Encourage employee involvement

Key Elements of the Lean Manufacturing Process

251-888-ITALTRADE

Cantù, Italy manufactures fabricating equipment used

in the recreational vehicle, health and fitness, and

medical equipment markets that bends, cuts, and forms

metal tubing. According to James Rutt, the president

and chief operating officer of Wixon, Michigan based

BLM Group USA, a wholly owned subsidiary, “Our

equipment is really like a work cell onto itself. Our

design philosophy is to consolidate as many tube

fabricating steps into one machine as is possible.” Rutt

adds that their objective is to help customers address

their lean initiatives by dramatically reducing direct

and indirect labor content, simplifying the production

process flow, reducing work-in-process inventory, and

saving manufacturing floor space.

Improved product quality is usually an outcome of

lean manufacturing. Lean forces a company to analyze

and improve many manufacturing processes, and

while doing so, firms often find process errors that

lead to poor quality. During lean implementations,

employees also become inspired to solve as many

quality related problems as possible. By focusing on

quality assurance rather than quality control, firms can

determine root cause analysis and provide permanent

corrective action to eliminate the defect. Using

innovative techniques such as Six Sigma, kaizen,

statistical process control (SPC) and mistake proofing,

companies can aggressively seek to identify and solve

quality problems, leading to reduced scrap and rework

and improved customer satisfaction.

Often, under performing companies will tend to

have an unbalanced production schedule, resulting in a

“hockey stick” trend of monthly shipments. In this

scenario, there are few shipments early in the month,

and the shipment rate continues to increase weekly,

reaching a crescendo during the last few days of the

month. The trend line actually looks like an inverted

hockey stick. This causes excessive strain on employees

and the manufacturing system, resulting in rushed

shipments, shortcuts, poor quality, dissatisfied customers

and an impacted cash flow. The situation is usually

repeated monthly. Lean manufacturing calls for a level-

loaded schedule that meets customer demand no matter

what the time of month. This allows for a measured

material flow leading to managed inventory levels,

efficient equipment loading, reasonable supplier delivery

schedules, and effective labor planning. Eliminating the

end of the month rush reduces organizational stress and

improves all aspects of the operation, with an especially

favorable improvement in cash flow.

The smoothing of the factory from a scheduling and

manufacturing aspect allows for smaller lot sizes,

another key aspect of lean manufacturing. Lean

organizations convert their manufacturing process from

a push system, one hoping to meet customer demand, to

a pull system, actively reacting to customer demand.

“We negotiated kanban based agreementsfor complex high tech vacuum systems withour operation in Torino, and that helped ussolve many inventory and customer serviceproblems...We were able to reduce orderpoints and inventory while improving ourcustomer satisfaction goals.”

LEAN MANUFACTURING


With reduced manufacturing cycle times and a

streamlined manufacturing process, lean companies can

often build to customer order, or at least closer to

actual customer demand, than traditional batch

manufacturing. Many companies use kanbans, a

Japanese term for signal, as the key to know when to

build a product or replenish inventory. In a pull system,

product is only supplied when a kanban signal is issued,

allowing for reduced work in process inventory. Smaller

lot sizes also allow companies to be flexible in meeting

changing customer demand. With less material in

production, defects are also caught earlier.

Varian Vacuum Technologies’ manufacturing facility

in Turin, Italy, Varian S.p.A. (www.varianinc.com)

supports their Lexington, Massachusetts based sister

division with lean based kanban and EDI programs. Lead

times have been reduced from eight weeks to two weeks

and inventory has been reduced by 30%. “We negotiated

kanban based agreements for complex high tech vacuum

systems with our operation in Torino, and that helped us

solve many inventory and customer service problems,”

says Sandy Selvey, the Varian Vacuum Technologies

Supply Chain Manager. “We were able to reduce order

points and inventory while improving our customer

satisfaction goals.” Selvey says that most of the daily

communication with the plant in Italy, after the

establishment of the kanban system, is electronic, which

certainly assists in overcoming time and communication

issues. “Having our factories transition to a pull system

has greatly improved our relationship and operating

efficiencies with the plant in Torino,” says Selvey.

The performance of suppliers is directly linked to

customer satisfaction. Without high performing

suppliers, companies may be starved of quality products

that are delivered on time and at the lowest total cost.

Lean recognizes the importance of suppliers and

advocates the inclusion of supplier performance metrics

into operating plans. Once lean efforts have begun in the

factory, suppliers are often asked to begin the lean

process themselves in an effort to reduce their lead

times, reduce costs, improve quality, and make smaller

and more frequent deliveries to their customer.

Often, first level suppliers to lean organizations have also

embraced lean, but it is important for all members of the

supply chain to do so as well, allowing for increasingly

streamlined and aligned processes.

Once a company starts to become lean, related

operational improvements begin to gain momentum.

One area is inventory. A steady production schedule

caused by factory smoothing and a closer relationship

with customers and suppliers allows for reduced

inventory in all areas. A tighter production schedule

allows for reduced raw material inventory. A shortened

manufacturing cycle time allows for reduced work in

process inventories, and a customer based pull system

“In our industry, collaborating withsuppliers is quite important. Ourconclusion is that technology like thisworks well, will pay for itself quickly, andit will help us maintain our competitiveposition in the global automotive industry.”

271-888-ITALTRADE

allows for reduced finished goods inventory. Lower

inventories result in improved inventory turns, reduced

warehouse space, less wasted production floor space,

and improved cash flow.

Improved product design, as a result of closer

relationships and collaboration with customers and

suppliers, also supports lean manufacturing.

Collaboration calls for the integration of information

and data from customers, manufacturing operations,

and suppliers in order to improve the effectiveness of

the overall manufacturing process. Collaborative

manufacturing increases visibility, improves

communication throughout the supply and demand

chains, reduces cycle times, shortens time to market,

improves quality, and aids in the product development

process. Collaboration is often done electronically,

seamlessly sharing data in support of lean operations.

Collaboration is critical in the automotive

industry. Magneti Marelli Powertrain S.p.A.

(www.magnetimarelli.com), the Milan, Italy based

manufacturer of high tech components and systems to

automobile manufacturers such as Renault, Fiat Group

(www.fiat.com), Ford and Toyota, uses design

interoperability software supplied by Proficiency, Inc. the

Marlborough, Massachusetts based company for

supporting the exchange of CAD models. “In our

industry, collaborating with suppliers is quite important,”

says Ferruccio Bondesan, V.P. of Purchasing at Magneti

Marelli Powertrain. “Our conclusion is that

technology like this works well, will pay for itself quickly,

and it will help us maintain our competitive position in

the global automotive industry.”

Potentially the most important aspect of lean

manufacturing is the employee. Without employees

enthusiastically embracing the aspects of lean, most lean

initiatives will fail. Employees in lean environments are

often empowered to make the required operations

decisions to keep the factory running smoothly.

Many companies utilize cross-functional and self-

directed work teams to tackle the problems that lean

implementations encounter. In addition, strong

leadership is imperative. Senior management must be

convinced that lean will work and understand and

support working through the obstacles of the never

ending lean journey. Lean implementations often bring

management and employees closer together as they

share information, education, successes, and failures.

Lean manufacturing is not a panacea, nor a fad.

It is a logical process to eliminate waste, streamline

operations, improve relationships with customers

and suppliers, and save money. Not all lean

programs work, often failing due to lack of

management support, employee apathy and short-

term thinking. Lean is international in scope,

especially in this time of international operations.

Lean works, and may soon be more than just a

phenomenon. It may be the only way for companies

to compete in the global marketplace.

“Our equipment is really like a work cellonto itself. Our design philosophy is toconsolidate as many tube fabricatingsteps into one machine as is possible.”

Show Dates

November 18-22,2005

October 11-15,2005

October 21-24,2004

October 21-24,2004

October 13-17,2004

October 18-22,2005

Sector

28 1-888-ITALTRADE

Italian exhibitions

MACHINES ITALIA TRADE SHOWS

Trade ShowParticipatingPartner Asso.

Show LocationTitle

listed by ConstructionSAIE 2004 Not In Attendance Bologna, ItalyThe International Show of Building Technologies

Printing, Graphicand Converting

MEDPRINT2004

ACIMGA Naples, ItalyExhibition of Technologies for the Mediterranean Printing, Publishingand Paper Converting Industry

Textile MachinerySAMAB 2004 Not In Attendance Milan, ItalyNovember 3-6,2004

11th International Clothing Industry Machinery and Accessories Show

Plastics andRubber

MACPLAS 2005 ASSOCOMAPLAST Bari, ItalyFebruary 10-13,2005

Trade Fair for Plastics and Rubber Machinery


GRAFITALIA2005

ACIMGA Milan, ItalyExhibition of Machinery and Materials for the Graphic Arts, Publishingand Communication Industries

Textile MachineryIKME 2005 ACIMIT Milan, ItalyInternational Exhibition of Finishing and Kniting Technologies

Packaging/Food Technology

Ipack-Ima 2006UCIMA - ANIMA(ASSOFOODTEC)

Milan, ItalyFebruary 14-18,2006

International Exhibition for Packing, Packaging, Material Handling andFood Processing Machinery


GEC'07 ACIMGA Milan, Italy 2007International Exhibition of Technologies for the Graphic Arts,Publishing, Paper and Converting Industries

PackagingMEDPACK 2004 UCIMA Naples, ItalyExhibition of Packaging and Handling Technologies for theMediterranean Food, Chemical and Pharmaceutical Industry

Footwear,Leathergoods andTanning

TANNING-TECH2004

ASSOMAC Bologna, ItalyOctober 26-29,2004

International exhibition of tanning machinery, accessories and systems

Agriculture / FarmMachinery

EIMA & EIMAGarden 2004

UNACOMA Bologna, ItalyNovember 10-14,2004

International Agriculture and Gardening Machinery ManufacturersExhibition

GlassVITRUM 2005 GIMAV Milan, ItalyOcotober 5-8,2005

Specialized International Exhibition for flat, bent and hollow glassmanufacturing machinery, equipment and plants, glassmanufactured and processed, glass products for industry

Food TechnologyCIBUS TEC Not In Attendance Parma, ItalyFood Processing & Packaging Technology Exhibition

MetalworkingEMO UCIMUHannover, GermanyMilan, Italy

Hannover - 2005Hannover - 2007Milan - 2009

The Trade Fair for the world production of machine tools, systems,robots and automation products

Plastics andRubber

PLAST 2006 ASSOCOMAPLAST Milan, ItalyFebruary 14-18,2006

International Plastic and Rubber Industries' Exhibition

Food TechnologyEurocarneANIMA(ASSOFOODTEC)

Verona, Italy TBAInternational Exhibition of Meat and Meat Processing Industries

www.fiereparma.it/cibustec/emain.htm


Zip Code City Telephone Fax E-mail

sector40128 Bologna

011-39-051-282111

011-39-051-6374013

[email protected]

20154 Milano011-39-02-3191091

011-39-02-341677

[email protected]

20157 Milano011-39-02-3320391

011-39-02-39005289

[email protected]

20090 Assago (MI)011-39-02-8228371

011-39-02-57512490

[email protected]

20154 Milano011-39-02-3191091

011-39-02-341677

[email protected]

20145 Milano011-39-02-48550-1

011-39-02-48008342

[email protected]

20154 Milano011-39-02-3191091

011-39-02-33619826

[email protected]

20154 Milano011-39-02-3191091

011-39-02-341677

[email protected]

20154 Milano011-39-02-3191091

011-39-02-33619826

[email protected]

27029 Vigevano (PV) 011-39-0381-78883

011-39-0381-88602

[email protected]

00161 Roma011-39-06-442981

011-39-06-4402722

[email protected]

20149 Milano011-39-02-33006099

011-39-02-33005630

[email protected]

43031Baganzola(PR)Milano

011-39-0521-9961

011-39-0521-996235

[email protected]

20092CiniselloBalsamo (MI)

011-39-02-26255225

011-39-02-26255890

[email protected]

20090 Assago (MI)011-39-02-82283756

011-39-02-57512490

[email protected]

20153 Milano011-39-02-40922565

011-39-02-40922599

[email protected]

Website

http://www.eima.it/en/home.html

www.emo-milan.com/eng/index.cfm

http://www.bolognafiere.it/eng_default.asp

http://www.medpack.it/en/index.htm

http://www.medprint.it/en/index.htm

http://www.tanning-tech.it/

http://www.senaf.it/samab04/index.htm

www.vitrum-milano.it/

www.grafitaliaonline.com/en/default.htm

http://www.ikme.it

http://www.ipack-ima.com/index_eng.htm

http://www.plast03.org/?Cambia=ing

http://www.fieremostre.it/fiere/geninfo.jsp?edizId=ec03&fieraId=ec

Address

Viale della Fiera, 20

Centro MostreSpecializzate, Corso Sempione, 4

Via Eritrea, 21/A

Domodossola, 1Palazzina F

Corso Sempione, 4

Corso Sempione, 4

Via Matteotti, 4/A -P.O.Box 113

Via Lazzaro Spallanzani,22/A

Via Rizzi, 67/a

Viale Fulvio Testi, 128

Centro DirezionaleMilanofiori, Palazzo F/3

Via Caldera, 21-C

Centro DirezionaleMilanofiori, Palazzo F/3Casella postale 24

Centro MostreSpecializzate, Corso Sempione, 4

Via Petitti, 16

http://www.macplas05.org

http://www.gecmilano.it/index_eng.htm

Centro MostreSpecializzate, CorsoSempione, 4

Organizer

BolognaFiere S.p.A.

CENTREXPO S.p.A.

SENAF Mestiere Fiere

Promaplast S.r.l.

CENTREXPO S.p.A.

Fiera MilanoInternational S.p.A.

Ipack-Ima S.r.l.

CENTREXPO S.p.A.

Ipack-Ima S.r.l.

Assomac Servizi S.r.l.

Fiere di Parma S.p.A.

CEU-CENTROESPOSIZIONI UCIMUS.p.A.

UNACOMA Service S.r.l.

VITRUM

ENFIPLAST

PROMEXPO S.r.l.

ITALIAN MACHINERY


Innovation at workAGRICULTURE/FARM MACHINERYUNACOMA represents Italian manufacturers of tractors, agricultural machinery and gardening machinery. TheseItalian manufacturers produce everything from power mowers for the homeowner to tractors and harvesters usedby the world’s leading agribusiness enterprises. UNACOMA members account for 90% of Italian farm machineryproduction. Italian farm equipment manufacturers rank first in the world in terms of the range of machinesproduced. www.unacoma.com

CERAMICSItalian manufacturers of machinery and equipment for ceramics have earned a world-class reputation for providingsolutions that meet a vast range of customer needs—from traditional ceramics to the latest design trends. Customersaround the globe choose machinery produced by members of ACIMAC, the Association of Italian Manufacturers ofMachinery and Equipment for the Ceramic Industry, because it is easy to program and simple to maintain; thismachinery is also known for its ability to increase productivity and for its design flexibility. www.acimac.it

EARTHMOVING MACHINERYCOMAMOTER is the group of UNACOMA representing the Italian manufacturers of earthmoving machinery,attachments and components. COMAMOTER has approximately 40 members (manufacturing over 80% of the totaloutput) who build high quality, reliable, heavy, medium and light equipment for worldwide use, valued at over 3 billiondollars a year. Italy exports more than $1 billion of earthmoving machinery, equipment and parts annually to morethan 140 countries worldwide. www.comamoter.com

FOOD TECHNOLOGYASSOFOODTEC (Incorporating UCMA)—the Italian Association of Machinery and Plant Manufacturers forFood Production, Processing and Preservation—has leveraged the Italian spirit of innovation into a globalleadership position. ASSOFOODTEC operates within the Federation of Italian Mechanical and EngineeringAssociations (ANIMA), and its member turn out machines for global exports that are well known fortechnological superiority, durability and ingenuity. www.assofoodtec.it

FOOTWEAR, LEATHERGOODS AND TANNINGASSOMAC is the association of Italian manufacturers of footwear, leathergoods and tanning machinery—representing 190 Italian companies. Member manufacturers are world leaders in this sector, supplying over 50%of the world’s demand for footwear and leathergoods machines and over 80% of the demand for tanningmachines. In 2002, 125 countries acquired Italian technology from this sector—representing 60% of Italy’sproduction volume of exported machines, with a value equal to $610 million USD.www.assomac.it

FOUNDRY AND METALLURGICAL MACHINERYAMAFOND is the Italian association of companies producing machinery, plants, furnaces and products for thefoundry industry. Its 80 member companies provide machinery used in the manufacturing of everything fromautomobile engines and components to domestic appliances. AMAFOND credits the “Italian approach” tobusiness—characterized by extra customer care and stronger personal relationships—as one of the reasons itsmember companies attract worldwide customers. www.amafond.com

GLASSAs an evolution of the Italian glass-making tradition, GIMAV—the Italian Association of Glass-ProcessingMachinery and Accessory Suppliers—represents Italian excellence in glass-making machinery today. This industrysector has expanded internationally by employing innovative technology that meets today’s marketplace needs.GIMAV’s 72 member companies are known for customizing machines to meet exacting end-user specifications—from high-rise building construction to fine arts applications. www.gimav.it

inglobal

311-888-ITALTRADE

marketsMARBLE AND STONEOne hundred and seventy-two companies form the foundation of Associazione Italiana MARMOMACCHINE, theassociation representing the Italian marble and stone machinery industries. These companies supply theadvanced technology that makes Italy a global leader in the stone and manufactured stone industries. Italianmachinery is engineered to be versatile and provide customers with unique solutions to process marble andstone at competitive prices. www.assomarmomacchine.com

METALWORKINGUCIMU is the Italian Machine Tools, Robots and Automation Manufacturers’ Association. These 214 companies createmachinery and components for industries from aerospace and automotive to appliances. Italian machine toolmanufacturing firms are smaller than their international competitors. As a result, their flexibility and ability torespond quickly is unmatched by manufacturers from other countries. Leading global companies choose Italianmachine tool machinery. www.ucimu.it

PACKAGINGUCIMA groups the Italian Manufacturers of Automatic Packing and Packaging Machinery. Its members represent65% of the total Italian production and, on average, 85% of Italian exports. One packaging machine out of everyfour in the world bears the wording “Made in Italy.” And the USA is the industry’s main outlet market of thesector. The worldwide success of the Italian packing and packaging industry is firmly rooted in a consolidatedtechnological tradition and in the ability to find customized packaging solutions.www.ucima.it

PLASTICS AND RUBBERThe companies of ASSOCOMAPLAST, the Italian Plastics and Rubber Processing Machinery and Molds Manufacturers’Association, are globally renowned for their “turnkey solutions”—addressing customer needs through sophisticatedmachines and engineering. As a result, the Italian plastics and rubber processing machinery industry has seen steadygrowth since its inception in 1960. Italian machines are highly prized by the world’s most industrialized andeconomically advanced countries. www.assocomaplast.org

PRINTING, GRAPHIC AND CONVERTINGACIMGA represents the Italian manufacturers of machinery for the graphic, converting and paper industry.Members of this association are world leaders in making machinery for rotogravure and flexographic printing,paper and cardboard processing, and converting. Most of what is produced is absorbed by the packaging marketwith 60% of the industry’s turnover, followed by the graphic sector with 35%, then niche applications with around5%. www.acimga.it

TEXTILE MACHINERYACIMIT is the Italian association representing 220 members who create textile machinery used throughout theworld. Each member takes pride in helping their manufacturing customers spin “cloth into gold.” Italian textilemachinery manufacturers meet the full spectrum of industry needs (spinning, weaving, knitting, finishing andlaundry machines), and leading American clothing manufacturers rely on the quality of Italian high-techmachinery. www.acimit.it

WOODIn every segment of woodworking, from sawmills to the industrial processing of solid wood and panel to finishing,the Italian industry is present with technological solutions capable of responding effectively to a multitude of userrequirements. ACIMALL, the Italian Woodworking Machinery and Tools Manufacturers’ Association, with over 200of the most qualified companies in their field, represents 80% of the whole industry, both in terms of employeesand in turnover. www.acimall.com

ATLANTAc/o Italian Trade Commission233 Peach Street N.E., Suite 2301Atlanta, Georgia 30303Tel: 888-ITALTRADE (482.5872)Fax: 404.525.5112E-mail: [email protected]

CHICAGOc/o Italian Trade Commission401 North Michigan Avenue, Suite 3030Chicago, Illinois 60611Tel: 888-ITALTRADE (482.5872)Fax: 312.264.6209E-mail: [email protected]

LOS ANGELESc/o Italian Trade Commission1801 Avenue of the Stars, Suite 700Los Angeles, California 90067Tel: 888-ITALTRADE (482.5872)Fax: 310.203.8335E-mail: [email protected]

TORONTOc/o Italian Trade Commission438 University Avenue, Suite 1818P.O. Box 112Toronto, Ontario Canada M5G 2K8Tel: 888-ITALTRADE (482.5872)Fax: 416.598.1610E-mail: [email protected]

MEXICO CITYc/o Instituto Italiano Para El

Comercio ExteriorEdificio Omega, Campos Eliseos N. 345 Colonia Polanco - 11560 Mexico D.F.Tel.: (01152 555) 2808425 -

2813950 - 2813957Fax: (01152 555) 2802324Toll free: (in Mexico City) 5281 50 10 or

(outside Mexico City)1.800.696.6032

E-mail: [email protected]

Thank you for your consideration to turn our innovation into your productivity! For information on the companies cited within thispublication or any of our thousands of Italian manufacturers, you may contact them directly, through our partner associations or anyMachines Italia Offices here in North America.

Don’t forget to visit WWW.MACHINESITALIA.ORG for the latest updates on Italian innovation, flexibility and creativity ready to meetyour company’s specific needs.

italian innovation: a manufacturing renaissance

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