an encouraging half-year product integrity - Berco S.p.A
an encouraging half-year product integrity - Berco S.p.A
an encouraging half-year product integrity - Berco S.p.A
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SOMMARIO<br />
Editorial<br />
EDITORIAL<br />
AN ENCOURAGING HALF-YEAR<br />
FRONT PAGE<br />
PRODUCT INTEGRITY<br />
OEM<br />
KOMATSU-BERCO, A WINNING PARTNERSHIP<br />
TKBEST<br />
SECOND ROUND OF PROJECTS ON THE WAY<br />
NEWS<br />
A PRESTIGIOUS NEW APPOINTMENT<br />
AUDITORS TOURS 2003<br />
NEW TECHNOLOGIES<br />
SPLIT LINKS PAR EXCELLENCE<br />
MACHINE TOOLS<br />
PETERSON, NEW STRATEGIC DIRECTION<br />
INSIDE BERCO<br />
THE BEST IN FIRST AID<br />
DEALER NEWS<br />
EQUIPMENT SALES & SERVICE CANADA<br />
MARKETING CORNER<br />
“BERCO MERCHANDISE”<br />
PROJECT FINALLY OPERATIONAL<br />
BERCO MINING PRODUCTS<br />
READY FOR THE CHALLENGE<br />
BERCO D10N REACHES 5,118 HOURS<br />
2<br />
3<br />
4<br />
6<br />
7<br />
7<br />
8<br />
9<br />
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10<br />
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12<br />
12<br />
<strong>Berco</strong> News is a quarterly magazine published for the employees, customers,<br />
suppliers <strong>an</strong>d friends of <strong>Berco</strong>. Its articles <strong>an</strong>d photographs c<strong>an</strong> be reproduced only<br />
if expressly authorised by the editor.<br />
Cover photograph: the first four <strong>Berco</strong> “black belts”<br />
Contributors to this issue: L. Baraldi, L. Barattoni, C. Bellini, L. Guzzinati, D. Koester,<br />
P. Malfatti, G. Neodo, B. P<strong>an</strong>in, A. Petrucci<br />
Publisher:<br />
<strong>Berco</strong> S.p.A. - Marketing & Communications Dept.<br />
Via 1° Maggio, 237 - 44034 Copparo (FE) Italy - e-mail: marketing@berco.com<br />
Editor: G. Micheletto<br />
tel. +39 0532 864116 - fax +39 0532 864462 - e-mail: gim@berco.com<br />
Text: Marketing & Communications Department<br />
Art <strong>an</strong>d graphics: Silvia Ungaro<br />
Pictures: L. Barattoni, G. Micheletto, S.Ungaro e altri<br />
Printer: Chinchio Industria Grafica<br />
Circulation: Itali<strong>an</strong> 5,000 - English 5,000 - Portoguese 500<br />
AN ENCOURAGING<br />
HALF-YEAR<br />
Figures for the first 6 months of 2002/03<br />
Anyone being optimistic or positive at times like this runs the risk of<br />
being seen as either foolhardy or a visionary, <strong>an</strong>d yet, on looking at<br />
the indicators <strong>an</strong>d figures for the first six months of 2002/03 we<br />
c<strong>an</strong>’t help but feel satisfied. <strong>Berco</strong>, in these times of war <strong>an</strong>d economic<br />
disaster, has logged a positive perform<strong>an</strong>ce, with shipped <strong>product</strong>ion<br />
volumes in the first <strong>half</strong>-<strong>year</strong> (+19<br />
tons) at the same level as last<br />
<strong>year</strong>, despite the subst<strong>an</strong>tial drop<br />
in global dem<strong>an</strong>d (-15%) in this<br />
sector of the market. And when<br />
sales volumes stay at the same<br />
level in a shrinking market, this<br />
me<strong>an</strong>s that our market share has<br />
increased <strong>an</strong>d our leading<br />
worldwide position has been further<br />
consolidated.<br />
But this isn’t all. In the first six<br />
months, the same amount (92,000<br />
tons) of components was produced as last <strong>year</strong>, despite the fact that<br />
there were three working days less <strong>an</strong>d a signific<strong>an</strong>t reduction in<br />
the number of employees (-103), which fell to 2838 units in Italy. This<br />
me<strong>an</strong>s that <strong>product</strong>ivity has increased, a result of the maximisation<br />
of internal processes <strong>an</strong>d the massive investments in new technology<br />
<strong>an</strong>d automation.<br />
In the month of March we shipped more (550 tons) th<strong>an</strong> we produced,<br />
a turnaround after m<strong>an</strong>y months that makes us hopeful for the<br />
future. Turnover has stayed in line with last <strong>year</strong>, even though, as we<br />
c<strong>an</strong> see in the profit <strong>an</strong>d loss account, profitability has suffered from<br />
the increases (in the last few months) in the cost of steel (+16%), energy<br />
costs (+4%), labour costs (+3,8%) <strong>an</strong>d, last but not least, the<br />
strengthening of the euro against the dollar (+27% in 12 months),<br />
<strong>an</strong> import<strong>an</strong>t factor if one considers that over 40% of sales proceeds<br />
are from the dollar area <strong>an</strong>d that the recent increases in listed prices<br />
(by just a few points) are certainly not enough to compensate for the<br />
increased costs.<br />
And so, despite everything, <strong>Berco</strong> steams ahead. Just recently the<br />
massive investments for the current <strong>year</strong> have been confirmed, with<br />
the pl<strong>an</strong>ned construction of a 6,000 m 2 building to house the new<br />
automatic assembly department, which will work at a rate of 5,000<br />
rollers per day. The upgrading of internal process <strong>an</strong>d procedures is<br />
set to continue, <strong>an</strong>d on this subject special mention should be given<br />
to the arrival of 6 Sigma at <strong>Berco</strong>, which, following in the footsteps<br />
of Vision2000, shifts the focus to multi-variable statistical methods,<br />
aimed at the radical upgrading of business processes.<br />
What about the future It won’t be easy, <strong>an</strong>d could indeed be as<br />
tough as the last 12 months, but <strong>Berco</strong> has great faith in its capabilities<br />
<strong>an</strong>d its achievements so far. We c<strong>an</strong> only hope that the economic situation<br />
<strong>an</strong>d political context improve, so that we c<strong>an</strong> finally get back to<br />
talking about a <strong>year</strong> of new records.<br />
Giov<strong>an</strong>ni Bertoni, <strong>Berco</strong> M<strong>an</strong>aging Director
Front Page<br />
PRODUCT INTEGRITY<br />
New division formed to guar<strong>an</strong>tee high st<strong>an</strong>dards<br />
of service <strong>an</strong>d even greater customer satisfaction<br />
Following on from the work<br />
done by Jerry Gehrke over the<br />
past few <strong>year</strong>s, <strong>Berco</strong>’s m<strong>an</strong>agement<br />
has decided to incorporate<br />
<strong>an</strong>other org<strong>an</strong>izational unit,<br />
known as Product Integrity, into<br />
the comp<strong>an</strong>y structure. The<br />
new unit will be broken down<br />
into two m<strong>an</strong>agement areas:<br />
• Quality Control M<strong>an</strong>agement,<br />
to be headed by Luca Baraldi<br />
• Product M<strong>an</strong>agement, to be<br />
headed by Carlo Bellini.<br />
This new move stems from a<br />
need that has arisen in several<br />
areas to rationalise the ch<strong>an</strong>nels<br />
<strong>an</strong>d me<strong>an</strong>s of communication<br />
used by the comp<strong>an</strong>y for qualityrelated<br />
problems, be they internal,<br />
supplier-related or after-sales,<br />
(i.e. sales to <strong>Berco</strong> dealers,<br />
m<strong>an</strong>ufacturers, m<strong>an</strong>ufacturers’<br />
dealers <strong>an</strong>d end users).<br />
QUALITY CONTROL<br />
MANAGEMENT<br />
It is responsible for quality control<br />
activities, from design support<br />
(i.e. from the issue of <strong>product</strong><br />
drawings to the inspection of<br />
prototypes) to the entire<br />
<strong>product</strong>ion process cycle (supplier<br />
accept<strong>an</strong>ce <strong>an</strong>d approval, checking<br />
<strong>an</strong>d approval of internal processes<br />
<strong>an</strong>d shipment of finished items).<br />
Together with Product<br />
M<strong>an</strong>agement, Quality Control<br />
M<strong>an</strong>agement then monitors<br />
<strong>product</strong> perform<strong>an</strong>ce in the field,<br />
with the aim of continually<br />
improving the <strong>Berco</strong> design <strong>an</strong>d<br />
<strong>product</strong>ion processes.<br />
Together with the M<strong>an</strong>aging<br />
Director, Quality Control<br />
M<strong>an</strong>agement is also responsible<br />
for defining the activities inherent<br />
in the <strong>Berco</strong> Group’s Total Quality<br />
Policy, which mainly involve<br />
m<strong>an</strong>aging internal Procedures<br />
<strong>an</strong>d process indicators in line<br />
with the ISO9001:Vision 2000<br />
certification schedule.<br />
Implementation is by me<strong>an</strong>s of<br />
<strong>an</strong> initial org<strong>an</strong>isational layer<br />
under the M<strong>an</strong>agement, covering<br />
the following areas of activity:<br />
1 Materials Testing <strong>an</strong>d<br />
Development Centre, providing<br />
a chemical/physical testing<br />
<strong>an</strong>d research back-up service<br />
to comp<strong>an</strong>y departments.<br />
2 Total Quality Assur<strong>an</strong>ce Service<br />
certification m<strong>an</strong>agement <strong>an</strong>d<br />
improvement of all comp<strong>an</strong>y<br />
processes.<br />
3 Prototypes, New Designs, Testing<br />
<strong>product</strong> development <strong>an</strong>d<br />
improvement, working together<br />
with Engineering M<strong>an</strong>agement.<br />
4 Supplier <strong>an</strong>d Production Process<br />
Control for the three <strong>Berco</strong><br />
factories, working together<br />
with Purchasing M<strong>an</strong>agement<br />
<strong>an</strong>d Production M<strong>an</strong>agement.<br />
PRODUCT MANAGEMENT<br />
It is responsible for external<br />
quality <strong>an</strong>d customer satisfaction<br />
with <strong>Berco</strong> <strong>product</strong>s. A wide<br />
r<strong>an</strong>ge of activities is covered,<br />
such as:<br />
• M<strong>an</strong>agement <strong>an</strong>d org<strong>an</strong>isation<br />
of technical assist<strong>an</strong>ce service<br />
(Product Support) for <strong>Berco</strong><br />
customers, dealers <strong>an</strong>d original<br />
equipment m<strong>an</strong>ufacturers<br />
(OEMs) all over the world.<br />
• M<strong>an</strong>agement of <strong>Berco</strong> <strong>product</strong><br />
warr<strong>an</strong>ty, including decisions on<br />
possible direct action.<br />
• Collection <strong>an</strong>d org<strong>an</strong>isation of<br />
field data on <strong>Berco</strong> <strong>product</strong><br />
reliability for making<br />
improvements to <strong>product</strong> design<br />
<strong>an</strong>d <strong>product</strong>ion processes.<br />
• Org<strong>an</strong>isation of internal training,<br />
external training courses for<br />
dealers <strong>an</strong>d/or external seminars<br />
for customers on the use of<br />
<strong>Berco</strong> <strong>product</strong>s.<br />
• Org<strong>an</strong>isation <strong>an</strong>d m<strong>an</strong>agement<br />
of trials <strong>an</strong>d tests on new<br />
<strong>product</strong>s <strong>an</strong>d/or prototypes onsite<br />
with end users.<br />
The above measures are<br />
implemented by me<strong>an</strong>s of <strong>an</strong><br />
initial org<strong>an</strong>isational layer under<br />
the M<strong>an</strong>agement level, covering<br />
the following areas of activity:<br />
1 Field assist<strong>an</strong>ce <strong>an</strong>d trials, i.e.<br />
actions aimed at external<br />
customer,<br />
2 Returns <strong>an</strong>d complaints, i.e.<br />
<strong>an</strong>alysis of warr<strong>an</strong>ty problems<br />
<strong>an</strong>d <strong>product</strong> development,<br />
3 Training <strong>an</strong>d “Knowledge Base”,<br />
i.e. training area <strong>an</strong>d field<br />
feedback data collection,<br />
<strong>an</strong>alysis <strong>an</strong>d distribution service.<br />
The customer will benefit in m<strong>an</strong>y<br />
ways from these org<strong>an</strong>isational<br />
ch<strong>an</strong>ges, for example:<br />
• with a single interface, the<br />
ch<strong>an</strong>nel for technical<br />
communications on <strong>Berco</strong><br />
<strong>product</strong> functioning <strong>an</strong>d<br />
perform<strong>an</strong>ce will be more easily<br />
accessible,<br />
• training activities will be more<br />
structured, org<strong>an</strong>ised <strong>an</strong>d, in<br />
short, improved <strong>an</strong>d made-tomeasure<br />
on the basis of<br />
customer needs,<br />
• procedures regarding warr<strong>an</strong>ty<br />
problems will be improved,<br />
with the streamlining of internal<br />
flow patterns,<br />
• the use of <strong>Berco</strong> component<br />
perform<strong>an</strong>ce data will be<br />
improved in order to enh<strong>an</strong>ce<br />
<strong>product</strong> improvement,<br />
In short, there will be higher<br />
levels of service <strong>an</strong>d customer<br />
satisfaction.<br />
Luca Baraldi<br />
Quality Control M<strong>an</strong>agement<br />
Carlo Bellini<br />
Product M<strong>an</strong>agement<br />
BN34 • 2nd Quarter 2003 3
OEM<br />
KOMATSU-BERCO,<br />
A WINNING PARTNERSHIP<br />
10 <strong>year</strong>s of joint work on a const<strong>an</strong>tly growing scale, bringing<br />
technology <strong>an</strong>d innovation to the earth moving industry<br />
Never has there been a time<br />
when the import<strong>an</strong>ce <strong>an</strong>d<br />
historical value of image <strong>an</strong>d<br />
br<strong>an</strong>d name been so prominent,<br />
with such <strong>an</strong> immediate <strong>an</strong>d<br />
t<strong>an</strong>gible effect on international<br />
market perform<strong>an</strong>ce, even in the<br />
critical, economically difficult<br />
period we are going through.<br />
The relationship between Komatsu<br />
<strong>an</strong>d <strong>Berco</strong> has created <strong>an</strong><br />
economical <strong>an</strong>d technical synergy<br />
that has had a positive effect on<br />
the growth of both comp<strong>an</strong>ies.<br />
The comp<strong>an</strong>ies have been working<br />
together now for over 10 <strong>year</strong>s,<br />
producing undercarriages that<br />
continue to be import<strong>an</strong>t points<br />
of reference in the different<br />
categories of tracked machinery.<br />
Komatsu, whose name has become<br />
synonymous with quality <strong>an</strong>d<br />
reliability in the r<strong>an</strong>ks of the most<br />
import<strong>an</strong>t earth moving machinery<br />
m<strong>an</strong>ufacturers in the world, beg<strong>an</strong><br />
its life in 1917 when a small<br />
mining comp<strong>an</strong>y opened a steel<br />
works in a little town called<br />
Komatsu, in central Jap<strong>an</strong>.<br />
“Komatsu Ltd” was officially<br />
established in 1921, when the<br />
steel works split off from its parent<br />
comp<strong>an</strong>y. In these early <strong>year</strong>s its<br />
development was based on<br />
technological innovation <strong>an</strong>d<br />
<strong>product</strong> quality, still to this day seen<br />
as essential comp<strong>an</strong>y attributes.<br />
Production was diversified over<br />
the following <strong>year</strong>s <strong>an</strong>d Komatsu<br />
started to be recognised as a<br />
leading comp<strong>an</strong>y on the<br />
construction machinery market,<br />
with the launching of the first<br />
bulldozers, track loaders, quarry<br />
trucks <strong>an</strong>d excavators.<br />
In 1955 Komatsu started exporting<br />
its machines all over the world<br />
<strong>an</strong>d, a few <strong>year</strong>s later, the comp<strong>an</strong>y<br />
took the strategic decision to<br />
operate increasingly from local<br />
bases <strong>an</strong>d started relocating<br />
<strong>product</strong>ion to factories in the<br />
United States, Brazil, Europe <strong>an</strong>d<br />
other countries throughout the<br />
world.<br />
Komatsu, with head offices in<br />
Tokyo, Jap<strong>an</strong>, now has over 130<br />
comp<strong>an</strong>ies, 30,500 employees<br />
<strong>an</strong>d a turnover of almost 8 billion<br />
dollars.<br />
THE TURNING POINT<br />
IN BERCO-KOMATSU<br />
RELATIONS<br />
After numerous contacts <strong>an</strong>d a<br />
few minor supply orders, the<br />
volume of component sales to<br />
the Komatsu factories started to<br />
increase dramatically in 1991,<br />
going from a few hundred tons to<br />
over 38,000 tons in just seven<br />
<strong>year</strong>s. The difficulties at first were<br />
m<strong>an</strong>y, especially because of the<br />
strict technical <strong>an</strong>d technological<br />
specification requirements, <strong>an</strong>d<br />
all <strong>Berco</strong> divisions <strong>an</strong>d departments<br />
were involved in coming to grips<br />
with the task of supplying a<br />
worldwide OEM. But it was these<br />
very “requests” (sometimes<br />
considered impossible), <strong>an</strong>d the<br />
ambitious programs devised in<br />
response by Giov<strong>an</strong>ni Bertoni,<br />
that spurred <strong>Berco</strong> into taking a<br />
series of crucial qualitative <strong>an</strong>d<br />
technological steps forward over<br />
the <strong>year</strong>s, helping it to become<br />
the main supplier for all the major<br />
earth moving machinery<br />
m<strong>an</strong>ufacturers in the world.<br />
4 BN34 • 2nd Quarter 2003
Nuove tecnolo-<br />
Komatsu UK<br />
Komatsu do Brasil<br />
For Komatsu, the relationship<br />
with <strong>Berco</strong> is based on trust, coengineering<br />
<strong>an</strong>d the certainty of<br />
total cooperation. This philosophy<br />
has been a further stimulus for<br />
the radical restructuring of <strong>Berco</strong><br />
pl<strong>an</strong>t <strong>an</strong>d, in just a few <strong>year</strong>s,<br />
with investments of tens of millions<br />
of euros, <strong>Berco</strong>’s <strong>product</strong>ion<br />
technology has been brought<br />
to levels of perfection, even<br />
in the more difficult<br />
processes. Komatsu has<br />
always appreciated the<br />
<strong>Berco</strong> approach to<br />
projects, <strong>an</strong>d <strong>Berco</strong> has<br />
always been very<br />
attentive to Komatsu’s<br />
technical <strong>an</strong>d quality<br />
requirements.<br />
TECHNICAL DEVELOPMENT<br />
AND GEOGRAPHICAL<br />
DEVELOPMENT<br />
Over the <strong>year</strong>s, the relationship<br />
with Komatsu has spread over<br />
the 5 continents <strong>an</strong>d encouraged<br />
<strong>Berco</strong> to open br<strong>an</strong>ches <strong>an</strong>d<br />
logistics centres in various places<br />
throughout the world for “just-in<br />
- time” delivery to Komatsu<br />
factories: <strong>Berco</strong> of America (in<br />
Wisconsin <strong>an</strong>d North Carolina),<br />
<strong>Berco</strong>Sul in Brazil <strong>an</strong>d <strong>Berco</strong><br />
Deutschl<strong>an</strong>d.<br />
Th<strong>an</strong>ks also to Komatsu, <strong>Berco</strong><br />
has become a global supplier who,<br />
on the basis of its force <strong>an</strong>d<br />
business capacity, has m<strong>an</strong>aged<br />
to contribute to the technological<br />
development of undercarriages,<br />
raising them to quality <strong>an</strong>d service<br />
levels never attained by other<br />
suppliers. The latest example of this<br />
development <strong>an</strong>d cooperation is<br />
the special extendable PC450<br />
frame (45 ton<br />
for Komatsu UK)<br />
in which the <strong>Berco</strong><br />
undercarriage has<br />
been assembled.<br />
Proof of the excellence of the<br />
service <strong>an</strong>d <strong>product</strong> quality c<strong>an</strong> be<br />
found in the numerous awards<br />
<strong>an</strong>d acknowledgements that <strong>Berco</strong><br />
has received from Komatsu, the<br />
more recent of these being KUK<br />
supplier of the <strong>year</strong> in 1999, best<br />
KDB supplier in 2001, etc.<br />
All the top Komatsu m<strong>an</strong>agers<br />
have visited the Copparo <strong>an</strong>d<br />
Castelfr<strong>an</strong>co factories, witnessing<br />
the continuous growth of <strong>Berco</strong><br />
<strong>year</strong> after <strong>year</strong>.<br />
Over the <strong>year</strong>s, Komatsu engineers<br />
have been seconded to <strong>Berco</strong> for<br />
periods of 6-12 months, working<br />
side-by-side with <strong>Berco</strong> engineers<br />
in the study <strong>an</strong>d improvement of<br />
undercarriages, resulting in the<br />
joint development of <strong>product</strong>s<br />
with excellent mech<strong>an</strong>ical, quality<br />
<strong>an</strong>d wear resist<strong>an</strong>ce characteristics<br />
<strong>an</strong>d at the best price. In the same<br />
way, <strong>Berco</strong> engineers have been<br />
to Komatsu in Jap<strong>an</strong>. These<br />
exch<strong>an</strong>ges have been import<strong>an</strong>t<br />
on a cultural as well as a technical<br />
level, giving us a better<br />
underst<strong>an</strong>ding of the underlying<br />
logic <strong>an</strong>d approach of a people<br />
quite different to us<br />
Europe<strong>an</strong>s.<br />
In the more th<strong>an</strong> ten <strong>year</strong>s<br />
of this relationship, over<br />
450,000 track chains,<br />
2,000,000 rollers <strong>an</strong>d<br />
more th<strong>an</strong> 200,000 idlers<br />
have been sent from the<br />
<strong>Berco</strong> factories to<br />
Komatsu, <strong>an</strong>d the rate is<br />
increasing, th<strong>an</strong>ks also to the<br />
continuous exp<strong>an</strong>sion of the r<strong>an</strong>ge<br />
of <strong>product</strong>s supplied to Komatsu,<br />
which now goes from the PC150<br />
to the PC100O for excavators <strong>an</strong>d<br />
from the D39 to the D375 for<br />
dozers.<br />
One of the key people in the<br />
relationship with Komatsu over<br />
all these <strong>year</strong>s has been Alfredo<br />
Petrucci, who, with the help of<br />
his assist<strong>an</strong>t Cecilia Capatti, has<br />
been dealing with the Komatsu<br />
br<strong>an</strong>ches all over the world, striving<br />
to convey their m<strong>an</strong>y <strong>an</strong>d varied<br />
requests to the engineering,<br />
<strong>product</strong>ion, logistics <strong>an</strong>d quality<br />
departments <strong>an</strong>d working to keep<br />
customer satisfaction at a<br />
const<strong>an</strong>tly high level.<br />
Alfredo Petrucci<br />
Key Account OEM<br />
BN34 • 2nd Quarter 2003 5
SECOND ROUND OF PROJECTS ON THE WAY<br />
AMONG THESE ALSO “6SIGMA” AND A NEW ROLLERS ASSEMBLY PLANT<br />
As already reported in <strong>Berco</strong><br />
News, the “Tk best” program<br />
(business excellence in service<br />
<strong>an</strong>d technology), launched by<br />
ThyssenKrupp as part of a pl<strong>an</strong><br />
to harness <strong>an</strong>d exp<strong>an</strong>d the<br />
potential of the comp<strong>an</strong>ies in the<br />
Group <strong>an</strong>d obtain lasting economic<br />
benefits, was actively introduced<br />
to <strong>Berco</strong> in the Summer of 2000.<br />
<strong>Berco</strong> started off with five projects,<br />
now in the final assessment stage.<br />
These are:<br />
1 Roller components warehousing<br />
- project leader: Fr<strong>an</strong>cesco<br />
Buri<strong>an</strong>i.<br />
2 Rollers assembly - project leader:<br />
Ing. Nicola Battistin.<br />
3 Track shoes - project leader:<br />
Carlo Zardi.<br />
4 Seal groups - project leader:<br />
Andrea Bi<strong>an</strong>chi.<br />
5 Set-up reduction of CF2 turning<br />
machine - project leader: Stef<strong>an</strong>o<br />
Sinz.<br />
A NEW ROLLERS ASSEMBLY<br />
PLANT<br />
The first two of the “TK best”<br />
projects listed above are directly<br />
linked to <strong>an</strong> investment pl<strong>an</strong>, to<br />
be completed over the next two<br />
<strong>year</strong>s, which involves the<br />
construction of a new building<br />
to house the new track roller<br />
assembly department. The rollers<br />
are currently assembled m<strong>an</strong>ually<br />
at <strong>Berco</strong>’s Copparo <strong>an</strong>d<br />
Castelfr<strong>an</strong>co Veneto factories,<br />
<strong>an</strong>d the aim of the project is to<br />
concentrate assembly work in<br />
Copparo, increase <strong>product</strong>ion up<br />
to 5,000 rollers a day <strong>an</strong>d<br />
considerably reduce end <strong>product</strong><br />
total costs by introducing<br />
semiautomatic work centres (or<br />
lines, according to the type of<br />
roller). The assembly lines will be<br />
served by automatic component<br />
warehousing, thus paving the<br />
way for further future development<br />
using AGV or LGV systems.<br />
The “TK best” projects c<strong>an</strong> thus<br />
be seen as a preliminary stage in<br />
defining the characteristics of<br />
the warehousing system (tr<strong>an</strong>sfer<br />
elevator perform<strong>an</strong>ce, type of<br />
loading stations in relation to the<br />
kind of pallets/containers stocked,<br />
space maximisation, etc.) <strong>an</strong>d the<br />
assembly lines/centres (automation<br />
grade, cycle times optimisation,<br />
interface m<strong>an</strong>agement, etc.). This<br />
approach was praised by Prof.<br />
Willi Predhöl, “TK best” project<br />
Coordinator for the Technologies<br />
Division, who gave a positive<br />
assessment of the parallel<br />
m<strong>an</strong>agement of “TK best” projects<br />
<strong>an</strong>d investment, whilst noting the<br />
diversity of the fields of application.<br />
SEALS GROUP<br />
The “Seal Groups” project, aimed<br />
at reducing defects in the cast<br />
iron rings used in seal groups,<br />
has already reached a successful<br />
conclusion <strong>an</strong>d achieved its set<br />
goals. The project involved studying<br />
the profile of the ring to be turned<br />
Simulation of the new<br />
rollers assembly pl<strong>an</strong>t<br />
<strong>an</strong>d introducing numerical control<br />
machines into the turning process.<br />
Still in the context of “continuous<br />
improvement”, the “Set-up<br />
reduction of CF2 turning machine”<br />
project has led to a reduction of<br />
about 25% in retooling times on<br />
CF2 <strong>half</strong>-roller rough grinding<br />
machine. On the strength of this<br />
success, the same solution will<br />
be applied to the second roughturning<br />
machine, practically<br />
identical to the CF2. Similar setup<br />
time <strong>an</strong>alyses are pl<strong>an</strong>ned in<br />
the near future for other processes.<br />
6SIGMA<br />
In addition, <strong>Berco</strong> has decided to<br />
use the “6sigma” method in its<br />
“TK best” projects, with Miss<br />
Trevissoi, Mr. Bi<strong>an</strong>chi <strong>an</strong>d Mr.<br />
Zardi being sent on a special<br />
“Black Belts” training course for<br />
this specific purpose. In “6sigma”<br />
l<strong>an</strong>guage, “Black Belts” are experts<br />
qualified to train so-called “Green<br />
Belts”. “6sigma” is well known as<br />
<strong>an</strong> import<strong>an</strong>t method for defining<br />
<strong>an</strong>d m<strong>an</strong>aging <strong>an</strong> org<strong>an</strong>isation’s<br />
processes. It was first implemented<br />
by Motorola in 1987 <strong>an</strong>d then by<br />
Texas Instruments in 1988. It<br />
gradually spread throughout North<br />
America in the nineties, being<br />
adopted by ABB in 1993, Allied<br />
Signal in 1994 <strong>an</strong>d General Electric<br />
in 1996, <strong>an</strong>d it was this latter<br />
comp<strong>an</strong>y that perhaps did most<br />
to apply the method in its most<br />
adv<strong>an</strong>ced form (even in<br />
tr<strong>an</strong>sactional processes), with<br />
declared savings of millions of<br />
dollars.<br />
The expression “6sigma” refers<br />
to a set target for the dist<strong>an</strong>ce<br />
of a process’s output from the<br />
tightest toler<strong>an</strong>ce limit, measured<br />
in st<strong>an</strong>dard deviation. With<br />
toler<strong>an</strong>ce specifications of at least<br />
6sigma, in statistical terms the<br />
process will give a defect rate of<br />
not greater th<strong>an</strong> 3.4 parts per<br />
million, equivalent to 99.99966%:<br />
this target is intended not only<br />
as a st<strong>an</strong>dard but also as a goal,<br />
albeit still a long way away for<br />
most daily processes, be they<br />
technological processes or, above<br />
all, service processes.<br />
The “6sigma” target is indicative<br />
of the method’s general approach,<br />
which is based on data collection<br />
for measurement <strong>an</strong>d statistical<br />
assessment. Process output<br />
“variability” control becomes the<br />
main concern of the system, with<br />
a number of specific practices<br />
<strong>an</strong>d techniques previously used<br />
only in certain statistics-based<br />
technological contexts being<br />
applied to the containment,<br />
measurement <strong>an</strong>d reduction of<br />
variability. These practices,<br />
reformulated in such a way as to<br />
be applicable without specialist<br />
statistical knowledge, have been<br />
adapted <strong>an</strong>d extended to nontechnological<br />
processes, where<br />
process characteristics are not<br />
generally evaluated using<br />
traditional measurement<br />
instruments.<br />
6 BN34 • 2nd Quarter 2003
News<br />
A PRESTIGIOUS NEW APPOINTMENT<br />
Giov<strong>an</strong>ni Bertoni appointed Chairm<strong>an</strong> of Executive Board<br />
of “ThyssenKrupp Acciai Speciali Terni”<br />
As with <strong>an</strong>y system, “6sigma” has<br />
its own specific glossary with its<br />
own set of terms <strong>an</strong>d initials.<br />
Amongst these there is DMAIC,<br />
which refers to a coded sequence<br />
for improvement <strong>an</strong>d re-design<br />
activities: Define, Measure, Analyse,<br />
Improve, Control. The Deming<br />
cycle (PDCA, i.e. Pl<strong>an</strong>, Do, Check,<br />
Act) is adapted <strong>an</strong>d applied to<br />
reengineering, with specific tools<br />
such as diagnostic matrices,<br />
reticular techniques, checklists,<br />
etc.<br />
Getting back to “TK best”, the<br />
“Track Shoes” project, which aims<br />
to reduce the number of track<br />
shoe nonconformity suspensions,<br />
has been chosen as the “6sigma”<br />
pilot project.<br />
PROJECTS 2003<br />
As the “TK Best” 2002 projects<br />
draw to a close, the fields of<br />
application for <strong>Berco</strong>’s “TK Best”<br />
2003 projects have already been<br />
forwarded to Prof. Predhöl. Given<br />
the potential of “6sigma”, it has<br />
also been decided to associate a<br />
“Black Belt” to each new project,<br />
thus making the acquired methods<br />
available to each work team <strong>an</strong>d<br />
<strong>encouraging</strong> the rapid spread of<br />
<strong>an</strong>alysis <strong>an</strong>d testing instruments<br />
aimed at finding better solutions.<br />
The themes of the new projects are:<br />
• Complaints <strong>an</strong>alysis: activities<br />
aimed at reducing customer<br />
“returns/complaints” costs;<br />
• Track link hardening/quenching<br />
/boring lines: optimisation of<br />
automatic track link process<br />
lines;<br />
• Consumable materials <strong>an</strong>d stock<br />
withdrawals: activities aimed<br />
at verifying the correct<br />
m<strong>an</strong>agement of stock materials.<br />
At the meeting of the new<br />
Board of Directors of<br />
ThyssenKrupp Acciai Speciali<br />
Terni (TKAST) on the 4th of April<br />
2003, Giov<strong>an</strong>ni Bertoni was<br />
appointed Chairm<strong>an</strong> of the<br />
Comp<strong>an</strong>y Executive Board (i.e.<br />
equivalent to M<strong>an</strong>aging<br />
Director).<br />
TKAST, a comp<strong>an</strong>y with 3,600<br />
employees <strong>an</strong>d a turnover of<br />
1,513 million euros, specialises<br />
in the m<strong>an</strong>ufacture of flatrolled<br />
stainless steel for a wide<br />
r<strong>an</strong>ge of uses. “Acciaierie di<br />
Terni”, established at the very<br />
dawn of Itali<strong>an</strong> industrial society<br />
in 1884, was merged with<br />
ThyssenKrupp Steel, one of the<br />
seven segments of ThyssenKrupp<br />
AG, in 1995, when it was<br />
purchased from the IRI (Institute<br />
for Itali<strong>an</strong> Reconstruction). Bertoni<br />
was chosen for his three-<strong>year</strong><br />
assignment by the group<br />
m<strong>an</strong>agement. On accepting his<br />
new role in the Terni comp<strong>an</strong>y,<br />
Bertoni confirmed that he will<br />
stay on as M<strong>an</strong>aging Director of<br />
<strong>Berco</strong> until his current contract<br />
expires at the end of 2005, the<br />
only obvious difference being<br />
AUDITORS TOURS 2003<br />
Dr. Stef<strong>an</strong> Kirsten, Executive Board member, visits <strong>Berco</strong><br />
On the 4th of April Dr A. Stef<strong>an</strong> Kirsten visited<br />
the <strong>Berco</strong> factory in Copparo. Last August Dr.<br />
Kirsten was appointed to the ThyssenKrupp AG<br />
executive board in charge of Fin<strong>an</strong>ce, Investor<br />
Relations, Corporate Accounting, Taxes <strong>an</strong>d<br />
Customs <strong>an</strong>d Insur<strong>an</strong>ce Services. Dr. Kirsten<br />
comes from “Metro”, the Germ<strong>an</strong> distribution<br />
gi<strong>an</strong>t, <strong>an</strong>d in his new role with TK over the past<br />
few months he has been visiting the m<strong>an</strong>y<br />
comp<strong>an</strong>ies in the group <strong>an</strong>d meeting personally<br />
with the m<strong>an</strong>agers. As part of the program of visits,<br />
known as the “Auditors Tour”, Dr. Kirsten came<br />
to Copparo last Friday accomp<strong>an</strong>ied by Dr.<br />
Ziolkowski (member of TK Technologies Board),<br />
Dr. Hense (Director of Corporate Accounting)<br />
<strong>an</strong>d Dr. Nunnenkamp (Partner in the KPMG<br />
that he will be able to spend less<br />
time in Copparo. In his official<br />
address to the comp<strong>an</strong>y, Bertoni<br />
didn’t rule out a partial<br />
involvement of <strong>Berco</strong><br />
m<strong>an</strong>agement in specific TKAST<br />
activities <strong>an</strong>d projects, thus<br />
making use of the great expertise<br />
<strong>an</strong>d know-how in practically all<br />
the <strong>Berco</strong> comp<strong>an</strong>y sectors . We<br />
would like once more to wish<br />
Giov<strong>an</strong>ni Bertoni all the best in<br />
his new role, in the firm belief that<br />
he will make the same great<br />
contribution to the new comp<strong>an</strong>y<br />
as he did to <strong>Berco</strong>.<br />
accounting firm), <strong>an</strong>d met Giov<strong>an</strong>ni Bertoni <strong>an</strong>d<br />
other members of the <strong>Berco</strong> m<strong>an</strong>agement team.<br />
The meeting, which included a trip round the<br />
factory, gave the visitors a ch<strong>an</strong>ce to see the<br />
effects of the massive investments made in recent<br />
<strong>year</strong>s.<br />
Ludovico Guzzinati<br />
Supply M<strong>an</strong>agement<br />
BN34 • 2nd Quarter 2003 7
New Technologies<br />
SPLIT LINKS PAR EXCELLENCE<br />
Installation <strong>an</strong>d start-up of 2nd split link deep<br />
grinding machine, the ELB CAM-MASTER I/1<br />
At the beginning of March<br />
2003 the first split links were<br />
produced on the ELB CAM-<br />
MASTER I/1 creepfeed machine.<br />
Production was started gradually,<br />
so as to be able to run a complete<br />
set of checks on the functioning<br />
of both the line <strong>an</strong>d the process<br />
m<strong>an</strong>agement software.<br />
As <strong>an</strong>d from now the line is<br />
considered as ready to start<br />
normal <strong>product</strong>ion of master<br />
split links.<br />
The difference between<br />
this new machine <strong>an</strong>d<br />
the first unit, installed<br />
in March 1999, is that<br />
it has more power<br />
available at the main spindle<br />
(<strong>an</strong> increase of about 25%, from<br />
196 kW to 250 kW) <strong>an</strong>d a function<br />
that automatically adjusts the<br />
grinding wheel washing jet, thus<br />
ensuring more effective cle<strong>an</strong>ing<br />
of the wheel during machining<br />
<strong>an</strong>d avoiding burns on the ground<br />
surfaces.<br />
All the other technical<br />
specifications, such as continuous<br />
in-process diamond dress,<br />
machining cycle <strong>an</strong>d cool<strong>an</strong>t flow<br />
rate <strong>an</strong>d pressure are the same<br />
as for the previous machine.<br />
The experience gained from the<br />
installation <strong>an</strong>d start-up of the<br />
first ELB line, in terms of machine<br />
parameter <strong>an</strong>d filter system<br />
settings, has made it possible to<br />
define specifications right down<br />
to the finest detail, working<br />
together with the supplier, thus<br />
allowing the immediate <strong>product</strong>ion<br />
start-up of the second machine.<br />
CONFIGURATION OF<br />
NEW SPLIT LINK MACHINING<br />
DEPARTMENT NOW<br />
COMPLETE<br />
The configuration of the new<br />
master split link m<strong>an</strong>ufacturing<br />
department, consisting of two<br />
robot-assisted milling-hardening<br />
centres, two ELB units <strong>an</strong>d a<br />
MAZAK Palletech, is thus now<br />
complete, with the following<br />
capabilities:<br />
a) Production capacity of about<br />
300 sets of split links per day for<br />
<strong>an</strong> equivalent number of lubricated<br />
tack chains,<br />
b) simult<strong>an</strong>eous <strong>product</strong>ion of a<br />
minimum of 4 different sets of<br />
split links in the last boring <strong>an</strong>d<br />
drilling stage, for track chain<br />
assembly.<br />
The department is thus capable<br />
of m<strong>an</strong>ufacturing all the master<br />
split links for KOMATSU OEM,<br />
from the D41 to the D375, <strong>an</strong>d<br />
for CAT AMs from the D3C to the<br />
D11NR.<br />
The <strong>product</strong>ion capacity <strong>an</strong>d<br />
flexibility of the new department<br />
is absolutely unrivalled: it’s enough<br />
to compare it with the old<br />
department, which had a<br />
maximum <strong>product</strong>ion capability<br />
of one set at a time <strong>an</strong>d average<br />
lead times three times as long.<br />
GLOBAL PROCESS CHANGE.<br />
The completion of the technological<br />
innovation program in the master<br />
split link m<strong>an</strong>ufacturing area<br />
marks yet <strong>an</strong>other import<strong>an</strong>t stage<br />
in <strong>product</strong>ion process evolution in<br />
BERCO’s factories.<br />
These ch<strong>an</strong>ges are bringing<br />
about a series of equally<br />
signific<strong>an</strong>t <strong>an</strong>d complex<br />
tr<strong>an</strong>sformations at the<br />
<strong>product</strong> engineering<br />
<strong>an</strong>d tooling level, which<br />
are re-examined in the<br />
context of the<br />
<strong>product</strong>ion process <strong>an</strong>d<br />
broken down into matching<br />
families. Mainten<strong>an</strong>ce <strong>an</strong>d<br />
operative personnel training in<br />
the new technologies, aimed at<br />
maximising process parameters<br />
<strong>an</strong>d pl<strong>an</strong>t mainten<strong>an</strong>ce practice,<br />
now becomes a crucial factor.<br />
These ch<strong>an</strong>ges underline our<br />
comp<strong>an</strong>y’s great commitment to<br />
the goals of improved quality <strong>an</strong>d<br />
reduced costs <strong>an</strong>d <strong>product</strong> delivery<br />
times, in the context of increased<br />
end customer satisfaction.<br />
Giuli<strong>an</strong>o Neodo<br />
8<br />
BN34 • 2nd Quarter 2003
Machines Tools<br />
THE BEST IN FIRST AID<br />
THE FIRST AID CENTRE IS EQUIPPED<br />
WITH A SEMIAUTOMATIC DEFIBRILLATOR<br />
Inside <strong>Berco</strong>’s Copparo factory<br />
there is a first aid centre<br />
equipped for dealing with minor<br />
incidents (acute illnesses <strong>an</strong>d/or<br />
accidents), with a private<br />
ambul<strong>an</strong>ce for administering onscene<br />
first aid <strong>an</strong>d tr<strong>an</strong>sferring<br />
patients from the different factory<br />
departments to the surgery. For<br />
major incidents the comp<strong>an</strong>y<br />
contacts the local Accident <strong>an</strong>d<br />
Emergency Service.<br />
A few months ago, in response to<br />
a regulation allowing comp<strong>an</strong>ies<br />
to use automatic cardiac first<br />
aid equipment when dealing with<br />
emergency heart cases, comp<strong>an</strong>y<br />
m<strong>an</strong>agement <strong>an</strong>d the Industrial<br />
Medicine Service asked the local<br />
health authority (Ferrara Health<br />
Authority) <strong>an</strong>d the Delta Hospital<br />
Accident <strong>an</strong>d Emergency<br />
Department to help org<strong>an</strong>ise a<br />
training course for a group of<br />
employees, so that a defibrillator<br />
could be purchased <strong>an</strong>d<br />
the comp<strong>an</strong>y could be<br />
equipped to deal<br />
with this<br />
type of emergency as quickly as<br />
possible. The statistics on this<br />
subject are extremely signific<strong>an</strong>t:<br />
of the 60,000 people every <strong>year</strong><br />
suffering from sudden cardiac<br />
arrest, only 2% survive, unless<br />
treatment with a defibrillator is<br />
immediately available on scene.<br />
On receiving the assent of the<br />
local authorities a training course<br />
was org<strong>an</strong>ised straight away with<br />
Ferrara Soccorso 118, the local<br />
accident <strong>an</strong>d emergency unit.<br />
The course was in two stages,<br />
one theoretical <strong>an</strong>d one practical,<br />
<strong>an</strong>d was attended by twelve<br />
employees, selected on the basis<br />
of their existing knowledge of<br />
basic first aid <strong>an</strong>d heart/lung<br />
resuscitation <strong>an</strong>d their work<br />
shifts, with a view to providing<br />
24-hour emergency cover in the<br />
factory. On completing the course,<br />
the particip<strong>an</strong>ts were awarded<br />
a first aid qualification certificate.<br />
Here too, <strong>Berco</strong> has confirmed<br />
its role as <strong>an</strong> attentive <strong>an</strong>d<br />
responsible comp<strong>an</strong>y by being<br />
the first workplace in the Ferrara<br />
Provincial District to have<br />
conformed to the new<br />
st<strong>an</strong>dard <strong>an</strong>d<br />
acquired medical<br />
equipment of vital<br />
import<strong>an</strong>ce to the<br />
health <strong>an</strong>d safety<br />
of its employees.<br />
PETERSON MACHINE<br />
TOOL UNVEILS NEW<br />
STRATEGIC DIRECTION<br />
After the ch<strong>an</strong>ge of ownership, PTM<br />
launches a new marketing strategy<br />
Peterson Machine Tool, Inc., <strong>Berco</strong> distributor of enginerebuilding<br />
equipment since 1962 <strong>year</strong>s, under new ownership<br />
since last fall, has a new corporate strategy utilizing the industry's<br />
best practices. Under the new strategy, Peterson will maintain its<br />
tradition (since the 1940's) of offering quality machinery. At the<br />
same time, the comp<strong>an</strong>y will use the most adv<strong>an</strong>ced technology<br />
in order to offer all engine rebuilders the equipment that meets<br />
their stringent st<strong>an</strong>dards. To help communicate the "new Peterson,"<br />
the comp<strong>an</strong>y has launched a new marketing strategy that is<br />
characterized also by a dynamic new corporate logo. The new Peterson<br />
logo symbolizes the revitalized comp<strong>an</strong>y spirit <strong>an</strong>d is accomp<strong>an</strong>ied<br />
by the theme line: "Where the pros go for speed <strong>an</strong>d perform<strong>an</strong>ce!"<br />
This theme line summarizes the comp<strong>an</strong>y's goal of providing the<br />
highest st<strong>an</strong>dards in premier quality equipment for professionals<br />
at every level. In addition, Peterson is exp<strong>an</strong>ding its in-house<br />
engineering department <strong>an</strong>d the sales <strong>an</strong>d marketing department<br />
staff is growing in order to react more quickly to customer needs.<br />
Customer service is paramount to Peterson's new strategy.<br />
As a consequence of this new era on Feb. 24 <strong>an</strong>d 25th Mr. Doug<br />
Hutchinson – new owner of PMT – has visited us in Copparo<br />
both to learn more about our comp<strong>an</strong>y <strong>an</strong>d also to sign a new<br />
revised contract for the distribution of <strong>Berco</strong> machine tools in North<br />
America. The meeting gave <strong>Berco</strong> M<strong>an</strong>agement the ch<strong>an</strong>ce to also<br />
examine the first results of the new PMT strategy. The outcome<br />
is certainly very positive if you consider that in the first semester<br />
of the new org<strong>an</strong>ization total sales have equalled those of the last<br />
12 months under the old org<strong>an</strong>ization. We w<strong>an</strong>t to take the<br />
ch<strong>an</strong>ce to th<strong>an</strong>k Mr. Hutchinson for visiting <strong>Berco</strong> <strong>an</strong>d also to<br />
welcome Mr. Chip Brown as new sales m<strong>an</strong>ager for North America<br />
of PMT.<br />
Go away!<br />
On-going <strong>an</strong>alisys.<br />
HOW IT WORKS<br />
To use the defibrillator, bare the chest of the person suffering from the<br />
heart attack, apply the two defibrillator pads <strong>an</strong>d follow the voice guide<br />
instructions, then st<strong>an</strong>d back. The equipment is able to assess the need<br />
for a “shock” <strong>an</strong>d administer it.<br />
BN34 • 2nd Quarter 2003 9
Dealer News<br />
EQUIPMENT SALES<br />
& SERVICE CANADA<br />
Celebrate 10 <strong>year</strong>s of association with <strong>Berco</strong><br />
April 14 2003 represents a<br />
signific<strong>an</strong>t milestone in the<br />
history of Equipment Sales &<br />
Service. This date represents ten<br />
full <strong>year</strong>s of partnership with<br />
<strong>Berco</strong>. This is a very signific<strong>an</strong>t<br />
achievement <strong>an</strong>d both comp<strong>an</strong>ies<br />
look forward to m<strong>an</strong>y more <strong>year</strong>s<br />
of co-habitation.<br />
ESS have been in the heavy<br />
construction distribution business<br />
serving the construction, mining<br />
<strong>an</strong>d forestry industries in C<strong>an</strong>ada<br />
since 1946 under the same family<br />
ownership. In addition, the<br />
comp<strong>an</strong>y has been a major supplier<br />
to the pipeline <strong>an</strong>d recycling<br />
industries, as well as government<br />
agencies, both locally <strong>an</strong>d<br />
internationally through the<br />
C<strong>an</strong>adi<strong>an</strong> industrial development<br />
agency <strong>an</strong>d C<strong>an</strong>ada's export<br />
development corporation.<br />
ESS was founded by William M.<br />
Willis following world war two.<br />
The dem<strong>an</strong>d for construction<br />
equipment was high then but the<br />
supply was nonexistent. In the<br />
1950’s the comp<strong>an</strong>y beg<strong>an</strong> to<br />
attract suppliers that were<br />
emerging as market leaders, within<br />
their particular niches.<br />
A COMPLETE RANGE<br />
Today ESS is the oldest serving<br />
Linkbelt cr<strong>an</strong>e <strong>an</strong>d excavator<br />
distributor in the world. In Ontario<br />
Equipment Sales & Service<br />
represent the Komatsu full line<br />
of construction equipment. This line<br />
of equipment fits well into the<br />
ESS commitment to provide their<br />
customers with high quality<br />
<strong>product</strong>s <strong>an</strong>d superior after-sale<br />
service. In Fort Mc Murray, located<br />
in northern Alberta, ESS represents<br />
the O&K <strong>product</strong>. ESS have a large<br />
service facility which maintains<br />
five of the largest hydraulic shovels<br />
in the world. These RH400<br />
machines are working the “tar<br />
s<strong>an</strong>ds” clearing the overburden.<br />
This is a 24/7 <strong>product</strong>ion operation<br />
which requires a dedicated team<br />
of technici<strong>an</strong>s to live up to the<br />
high expectations of the mining<br />
industry.<br />
Other m<strong>an</strong>ufacturers represented<br />
by ESS in various parts of the<br />
country are the crushing <strong>an</strong>d<br />
construction line for Esco, Terex<br />
articulated trucks <strong>an</strong>d Dynapac<br />
compaction equipment <strong>an</strong>d other<br />
br<strong>an</strong>ds like Labounty, Mitsi Mike<br />
<strong>an</strong>d Broderson. However a very<br />
import<strong>an</strong>t <strong>product</strong> line which<br />
rounds out the ESS offerings to the<br />
customers is certainly <strong>Berco</strong>.<br />
PRODUCTS AND SERVICES<br />
ESS is deeply involved in the mining<br />
industry in western C<strong>an</strong>ada <strong>an</strong>d as<br />
a matter of fact ESS have m<strong>an</strong>y<br />
sets of D10N undercarriage working<br />
in some of the largest coal mines<br />
in the world. ESS has recently<br />
supplied a full D11N undercarriage<br />
to a large mine <strong>an</strong>d is being<br />
monitored for perform<strong>an</strong>ce. The<br />
relationship with these comp<strong>an</strong>ies<br />
has been built on supplying superior<br />
<strong>product</strong> <strong>an</strong>d most import<strong>an</strong>tly<br />
providing after the sale service.<br />
ESS have a very competent crew<br />
of outside sales people who are<br />
welcomed by these comp<strong>an</strong>ies to<br />
help them meet their goal of cost<br />
reduction. In 2002 ESS purchased<br />
<strong>an</strong>d installed a new <strong>Berco</strong> PT350<br />
ton press along with the<br />
appropriate tooling to ensure the<br />
service to the customer with large<br />
dozers (up to D11 <strong>an</strong>d D575) <strong>an</strong>d<br />
excavators.<br />
ESS across C<strong>an</strong>ada are selling<br />
undercarriage to a variety of<br />
different machines within the<br />
forestry industry. All the operations,<br />
from Montréal (Quebec) to<br />
V<strong>an</strong>couver in British Columbia do<br />
a large volume of business in this<br />
market segment these machines<br />
are very dem<strong>an</strong>ding on the<br />
undercarriage <strong>an</strong>d work in very<br />
difficult conditions. <strong>Berco</strong> has<br />
lived up to its reputation of high<br />
quality <strong>an</strong>d the <strong>Berco</strong> name is<br />
well respected <strong>an</strong>d accepted in<br />
this industry. ESS feel that in the<br />
forestry <strong>an</strong>d mining industries<br />
there are opportunities for growth<br />
<strong>an</strong>d they will be concentrating<br />
their efforts in these areas in the<br />
<strong>year</strong>s to come.<br />
TODAY<br />
Equipment Sales & Service Ltd.<br />
is a limited comp<strong>an</strong>y, controlled<br />
by Michael L. Willis, President <strong>an</strong>d<br />
Peter M. Willis, Chairm<strong>an</strong> of the<br />
board. They are both active solely<br />
in the business. The comp<strong>an</strong>ies<br />
chief fin<strong>an</strong>cial officer <strong>an</strong>d treasurer<br />
is V. D. Boyd, while M. B. Smith is<br />
the VP & General M<strong>an</strong>ager, B.<br />
Hardm<strong>an</strong> the General M<strong>an</strong>ager<br />
OEM Sales & Service <strong>an</strong>d G. Parps<br />
is the General M<strong>an</strong>ager Aftermarket<br />
Sales & Service. These three senior<br />
m<strong>an</strong>agers are directly responsible<br />
for day to day operations.<br />
ESS operates distribution outlets<br />
covering the provinces of British<br />
Columbia, Alberta, M<strong>an</strong>itoba,<br />
Ontario, <strong>an</strong>d Quebec. Within the<br />
province of Ontario, revenues<br />
come from br<strong>an</strong>ch operations in<br />
Ottawa, Sudbury, London, <strong>an</strong>d<br />
from the comp<strong>an</strong>ies corporate<br />
headquarters in Toronto. In Quebec,<br />
a fully bilingual operation in<br />
Montréal, covers the province. In<br />
western C<strong>an</strong>ada, br<strong>an</strong>ches in<br />
Tumbler Ridge serve the British<br />
Columbia coal mining industry.<br />
In lower British Columbia there<br />
is a full service operation servicing<br />
the undercarriage market. As<br />
indicated earlier, Ess have also a<br />
service operation in fort McMurray.<br />
Equipment Eales & Service have<br />
represented the <strong>Berco</strong> <strong>product</strong> in<br />
C<strong>an</strong>ada for ten <strong>year</strong>s <strong>an</strong>d have<br />
achieved considerable respect in<br />
the forestry, mining <strong>an</strong>d<br />
construction industries, <strong>Berco</strong> <strong>an</strong>d<br />
ESS m<strong>an</strong>agement team look<br />
forward on building <strong>an</strong> even closer<br />
relationship to help the business<br />
grow in C<strong>an</strong>ada in the <strong>year</strong>s to<br />
come.<br />
10<br />
BN34 • 2nd Quarter 2003
Marketing Corner<br />
“BERCO MERCHANDISE”<br />
PROJECT FINALLY<br />
OPERATIONAL<br />
The <strong>Berco</strong> Merch<strong>an</strong>dise project<br />
is finally up <strong>an</strong>d running, 15<br />
months after the official<br />
<strong>an</strong>nouncement <strong>an</strong>d a little behind<br />
schedule (for org<strong>an</strong>isational<br />
reasons). In the time between<br />
the project’s <strong>an</strong>nouncement<br />
<strong>an</strong>d its implementation the<br />
m<strong>an</strong>y problems that arose<br />
have been resolved:<br />
administrative problems<br />
(related to the<br />
m<strong>an</strong>agement <strong>an</strong>d<br />
invoicing of<br />
material never<br />
previously<br />
dealt with by<br />
the comp<strong>an</strong>y),<br />
customs<br />
problems<br />
(commodity coding<br />
<strong>an</strong>d international<br />
customs classifications),<br />
logistics problems (related<br />
to <strong>product</strong> storage <strong>an</strong>d<br />
shipment to 5 continents)<br />
<strong>an</strong>d purchasing problems<br />
(rationalization of r<strong>an</strong>ge<br />
<strong>an</strong>d suppliers). Each<br />
article has been coded<br />
<strong>an</strong>d entered in the<br />
comp<strong>an</strong>y m<strong>an</strong>agement<br />
procedure <strong>an</strong>d <strong>an</strong><br />
automatic stock<br />
m<strong>an</strong>agement system has<br />
been purchased to keep a const<strong>an</strong>t<br />
check on the stock levels <strong>an</strong>d<br />
movements of each single item.<br />
A number of different solutions<br />
have been studied for shipping the<br />
merch<strong>an</strong>dise, with the material<br />
being shipped either by container<br />
(where possible) or by courier,<br />
at particularly economical rates<br />
<strong>an</strong>d with reduced waiting times.<br />
In the me<strong>an</strong>time the <strong>product</strong><br />
r<strong>an</strong>ge has been extended<br />
<strong>an</strong>d renewed with highly<br />
interesting items that are<br />
both good quality <strong>an</strong>d<br />
excellent value for<br />
money. In this way<br />
dealers <strong>an</strong>d<br />
customers will be<br />
able to select <strong>an</strong>d<br />
buy <strong>product</strong>s from<br />
a vast r<strong>an</strong>ge. The<br />
merch<strong>an</strong>dise is<br />
already being sold<br />
by all the official<br />
dealers <strong>an</strong>d is available<br />
from the <strong>Berco</strong><br />
Employees Club. A new<br />
catalogue has been<br />
produced for all the<br />
clothing, accessories <strong>an</strong>d<br />
objects, which will be<br />
distributed at Intermat 2003<br />
(Paris, May 2003), but<br />
which is already<br />
available online <strong>an</strong>d c<strong>an</strong><br />
be ordered by sending <strong>an</strong> e-mail<br />
to marketing@berco.com. The<br />
first orders have already arrived,<br />
<strong>an</strong>d now everything is ready <strong>an</strong>d<br />
the “<strong>Berco</strong> Merch<strong>an</strong>dise” project<br />
c<strong>an</strong> finally take off.<br />
VERHOEVEN - NL<br />
GUESTS<br />
CABLEPRICE - NZ<br />
13-17 MAY 2003 - PARIS, FRANCE<br />
The International Exhibition of equipment <strong>an</strong>d techniques<br />
for the civil engineering <strong>an</strong>d construction industries<br />
HALL 6 STAND F20<br />
21-25 MAY 2003 - BOLOGNA, ITALY<br />
The International Exhibition of equipment<br />
<strong>an</strong>d services for the tr<strong>an</strong>sportation industries<br />
HALL 30 STAND B16<br />
BN34 • 2nd Quarter 2003 11
<strong>Berco</strong> Mining Products<br />
BERCO D10N<br />
REACHES 5,118 HOURS<br />
In official tests conducted at the CVRD mines,<br />
<strong>Berco</strong> track chains easily exceed the 4500<br />
hours average life of <strong>an</strong> original undercarriage<br />
READY FOR<br />
THE CHALLENGE<br />
The new BMP org<strong>an</strong>ization in North America<br />
If you are in the market for <strong>an</strong><br />
undercarriage that fits the<br />
largest crawler type machinery,<br />
<strong>Berco</strong> Mining Products may be the<br />
best source available today. Over<br />
the course of several <strong>year</strong>s, BMP<br />
has seen steady growth in a<br />
market often ignored by other<br />
undercarriage m<strong>an</strong>ufacturers.<br />
Given the strong heritage of<br />
<strong>Berco</strong> undercarriage for<br />
construction equipment, it is<br />
only natural that <strong>Berco</strong> leads the<br />
way into the mining sector.<br />
<strong>Berco</strong>’s dealer network in North<br />
America has had increasing<br />
success in the mining sector. A<br />
large population of D10N/R <strong>an</strong>d<br />
D11N/R machines are running<br />
with <strong>Berco</strong> track in all types of<br />
operating conditions. From the<br />
phosphate mines of Florida to<br />
the tar s<strong>an</strong>ds of C<strong>an</strong>ada, <strong>Berco</strong><br />
tracks c<strong>an</strong> be found on the very<br />
large machines. One area of<br />
success is in the Mesabi Iron<br />
R<strong>an</strong>ge of Northern Minnesota.<br />
<strong>Berco</strong> D10R <strong>an</strong>d D11R tracks are<br />
achieving very good wear life in<br />
comparison to the original.<br />
Additionally, a new PT 350 track<br />
press allows the <strong>Berco</strong> dealer to<br />
provide service in the immediate<br />
area of the various iron mines.<br />
Another area of success is in the<br />
open pit coal fields spread across<br />
America. M<strong>an</strong>y coal mines today<br />
are using <strong>Berco</strong> undercarriage<br />
for their very large machines.<br />
PRODUCT AND SERVICE<br />
To build upon the current success<br />
in North America, <strong>Berco</strong> is<br />
developing pl<strong>an</strong>s for improving<br />
availability <strong>an</strong>d service for not<br />
only the most common models of<br />
large type undercarriages, but<br />
also for those models which may<br />
be less common <strong>an</strong>d less likely to<br />
be stocked by individual dealers.<br />
We believe that the very large<br />
dozers, excavators <strong>an</strong>d shovels<br />
require a strategy of not only a<br />
great <strong>product</strong> line but also great<br />
service. A closer relationship<br />
between the customer, the dealer,<br />
the factory <strong>an</strong>d the Engineering<br />
group makes BMP unique in it’s<br />
ability to provide a <strong>product</strong> that<br />
st<strong>an</strong>ds up to the 24 hours a day<br />
use that the largest mining<br />
equipment c<strong>an</strong> expect to achieve.<br />
Of the various undercarriage<br />
m<strong>an</strong>ufacturers, whom else but<br />
<strong>Berco</strong> has the Maxi-Press that<br />
c<strong>an</strong> forge the largest track links,<br />
roller shells <strong>an</strong>d<br />
o t h e r<br />
components<br />
used on these<br />
very large<br />
undercarriages.<br />
Add <strong>Berco</strong>’s<br />
Machine Tools<br />
Division with<br />
the <strong>product</strong>ion<br />
of the PT350<br />
track press <strong>an</strong>d<br />
<strong>Berco</strong> becomes unique in it’s<br />
ability to not only m<strong>an</strong>ufacture<br />
the largest undercarriages but<br />
also the equipment needed to<br />
service it.<br />
Dave Koester<br />
BMP - <strong>Berco</strong> of America<br />
Selling<br />
undercarriage<br />
components in mining isn’t<br />
easy. On the one h<strong>an</strong>d it’s essential<br />
to offer <strong>an</strong> excellent level of<br />
service, with weekly site visits,<br />
<strong>an</strong>d on the other the <strong>product</strong> has<br />
to be put through rigorous official<br />
field duration tests in order to<br />
obtain <strong>an</strong> “authorised <strong>product</strong><br />
<strong>an</strong>d supplier” certificate. And so,<br />
in February of last <strong>year</strong> at the<br />
Cauê-Conceição mining complex<br />
at Itabira (Minas Gerais – Brazil)<br />
comparative tests were begun on<br />
two D10Ns with original track<br />
chains on one side <strong>an</strong>d track<br />
chains with <strong>Berco</strong> shoes on the<br />
other. After turning the pins <strong>an</strong>d<br />
bushings at 2,644 hours, the test<br />
was completed on the 8th of<br />
J<strong>an</strong>uary this <strong>year</strong>, with the <strong>Berco</strong><br />
track chains ending their useful life<br />
at 5,118 hours, i.e. 618 hours more<br />
th<strong>an</strong> the average life of the original<br />
<strong>product</strong>. There were no unexpected<br />
machine downtimes caused by<br />
problems with the <strong>Berco</strong> <strong>product</strong><br />
during the test, <strong>an</strong>d the<br />
undercarriage performed<br />
excellently, with no abnormal<br />
joint overheating or oil leaks. Two<br />
other tests were run in parallel<br />
on 2 other track chains on 2<br />
different machines, <strong>an</strong>d these too<br />
came up with positive results,<br />
amply exceeding the required<br />
4500 h. A third set of track chains<br />
(on <strong>an</strong>other 2 machines) is<br />
currently completing the second<br />
stage of the test, with pins <strong>an</strong>d<br />
bushings already turned.<br />
These tests are <strong>an</strong>other import<strong>an</strong>t<br />
step for <strong>Berco</strong> in consolidating<br />
their presence in the mining area,<br />
<strong>an</strong>d yet further confirmation of the<br />
value of the <strong>Berco</strong> Mining Products<br />
project. We would like to th<strong>an</strong>k all<br />
the m<strong>an</strong>agement team of the<br />
Comp<strong>an</strong>hia Vale do Rio Doce, in<br />
particular J.F. de Aguiar Andrade,<br />
F.A. L<strong>an</strong>za <strong>an</strong>d J. Dorotèia Gomez,<br />
E: Mil<strong>an</strong>io who gave us the<br />
possibility of conducting the tests<br />
<strong>an</strong>d demonstrating the excellence<br />
of <strong>Berco</strong> <strong>product</strong>s.<br />
Paolo Malfatti<br />
Product Support<br />
<strong>Berco</strong>Sul Ltda.