ACL Newsletter Issue 28
ACL Newsletter Issue 28
ACL Newsletter Issue 28
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A FOCUS ON <strong>ACL</strong> BEARING COMPANY<br />
NEW BEARING COMPANY GM SEES<br />
ENORMOUS POTENTIAL THROUGH<br />
CONTINUOUS IMPROVEMENT<br />
Following the retirement of Bob<br />
Panitzki in September, Jim Degnian<br />
has been appointed General<br />
Manager of <strong>ACL</strong> Bearing<br />
Company; having been General<br />
Manager of <strong>ACL</strong> Gasket Company<br />
from 1997 to 2003. Jim is not<br />
completely new to the Launceston<br />
operation as he undertook a project<br />
earlier in the year to help implement<br />
a continuous improvement program.<br />
outcome from our processes - and I’m talking<br />
about all of our processes not just those in<br />
production areas. Process Control is a risk<br />
management methodology for continuous<br />
improvement of the quality control tools used<br />
at each and every operation.”<br />
“I find that the term Continuous<br />
Improvement is often quite misunderstood,”<br />
said Jim.“To me it is a process of chipping<br />
away at the problem - do something today<br />
at relatively low cost and effort that will<br />
help you see the problem in a different light<br />
tomorrow - then make another small change<br />
tomorrow.In the last edition of <strong>ACL</strong> Reporter,<br />
Alan Smith told us about his activities to<br />
reduce the set-up time within one of our<br />
Bearing machine lines. Alan has become a<br />
great supporter of the small step improvement<br />
philosophy. Alan and his team have made<br />
many hundreds of small, and not so small,<br />
improvements to the same machines - and<br />
there are still many more hundreds to go.”<br />
‘<strong>ACL</strong> Reporter’ asked Jim: Now<br />
that you have a permanent role at Bearing<br />
Company, has anything changed in your<br />
approach? “No, my understanding is that in<br />
the past when Bearing Company has tried to<br />
implement systems like this,it was introduced<br />
into one small area at a time and wasn’t<br />
integrated well with other business systems.<br />
It then tended to lose momentum and stop.<br />
The important thing is to make sure that<br />
continuous improvement activities are<br />
integrated into our everyday activities so that<br />
the improvement does not stop. The twin<br />
approach of Process Flow and Process Control<br />
is part of what we call Management Review<br />
- it’s about the way the business is being<br />
managed and continuously improved - striving<br />
to reduce waste in every part of the business.”<br />
“Complementing this is a process called<br />
Leadership Review - planning and creating<br />
the future that we collectively want for the<br />
company.”<br />
“The difficulty,” says Jim,“is that everyone<br />
within the company will see the future<br />
differently; from a different perspective. So<br />
what do we do? Well I see my role being to<br />
provide the clear direction in which we need<br />
to move - the road we are going to travel on.<br />
The next important step is to then try and<br />
develop some ‘shared vision’of what we want<br />
to create. It’s pointless my saying:‘this is my<br />
vision and therefore this is now our shared<br />
vision’. It won’t work. The management<br />
team has started and will continue to meet<br />
regularly to talk about these issues. In the<br />
near future we will start holding employee<br />
forums to try and understand what other<br />
people see for our future.”<br />
“Clearly people in this business see<br />
a need for change, and clearly there are<br />
opportunities for improvements.With everyone’s<br />
help we’ll get there.”<br />
<strong>ACL</strong> Bearing Company<br />
General Manager, Jim Degnian<br />
he continuous improvement program<br />
‘‘T focused on the two management<br />
principles of Process Flow and Process<br />
Control,” said Jim.<br />
“Process Flow is just another way of<br />
looking at Lean Production. Making processes<br />
flow faster is all about doing things in smaller<br />
and smaller batches.The faster the flow, the<br />
more problems are uncovered - remove the<br />
problems - faster flow - reduce the waste.”<br />
According to Jim:“The word ‘quality’ is<br />
all about getting a predictable and repeatable<br />
Bearing’s Leadership Team (L-R Rear) Chris Brooks, David Midgley, Peter Smith, Phil Dowl, Nathan Lawson, Mal Matthews and Jim<br />
Degnian. (L-R Front), Lee Chadwick,Yvette Saunders, Ian Coulson, Darren von Stieglitz. Absent on annual leave was Mike Lambert.
TONY KEEPS AFIRM GRIP<br />
ON MAINTENANCE<br />
T<br />
ony Hannan is <strong>ACL</strong> Bearing Company’s<br />
Maintenance Team Leader, who has the<br />
responsibility of looking after Plants 1 and 3<br />
and planning for all plants.There has been an<br />
overhaul of the maintenance administration,<br />
which has seen an increase in safety hazards<br />
being exposed.<br />
“We now have five different coloured<br />
forms when maintenance is required,”<br />
explained Tony.“Blue for mechanical. Pink<br />
for electrical. Yellow for safety. Green for<br />
environmental, and white covers suggestions<br />
for improvements.<br />
“Anybody can raise a form, and they<br />
fill out the plant number, machine number,<br />
the machine name and the area.They include<br />
their name, the date it’s raised and the<br />
problem.This then goes to the supervisor.<br />
He assesses it and it’s allocated a priority<br />
depending on production needs.”<br />
Tony said that can be either low,medium<br />
or high and the date it needs to be fixed.<br />
“From there it comes to me and I allocate it<br />
to a fitter,electrician or contractor.I also check<br />
to see if any safety plan is required and this<br />
is printed on the reverse side of the form.<br />
“If a safety plan is required, we indicate<br />
that and put it into my maintenance database<br />
and assign a database number. If it goes to a<br />
contractor, I review the job with them and<br />
go through any company requirements.We<br />
detail what’s required and when, and list<br />
any appropriate Workplace Safety or other<br />
safety standards that the contractor must<br />
comply with.”<br />
At this point Tony said the contractor<br />
indicates what he will do to protect <strong>ACL</strong><br />
personnel.“This covers his employees,and our<br />
equipment and if I deem it necessary,I involve<br />
the Safety Officer. If the work involves some<br />
danger, they have to fill out what protective<br />
measures they’re going to take.”<br />
MSD’s have to be submitted prior to<br />
any work being carried out, and the safety<br />
rules take the place of a lot of the safety<br />
permits previously used.“I think it’s a good<br />
thing that they are displayed on the job-sheet.<br />
They let everyone know what action is<br />
required prior to the job being started,”added<br />
Tony.“On an average day, I get up to 30 of<br />
these forms and that’s only for Plant 2. In the<br />
short-term, the flow will be high until we<br />
get on top of them.Some of the problems we<br />
knew about; others have surfaced through<br />
risk management, and because machines are<br />
being looked at more closely than previously.”<br />
RACE SERIES<br />
NOW AVAILABLE FOR<br />
AUSSIE MARKET<br />
The Australian domestic engine rebuilding<br />
market will be able to enjoy what their<br />
American cousins have had for a while.<br />
“While we have had Race Series on the<br />
Australian market for some time, we’ve<br />
actually improved the performance with new<br />
design and improved metallurgy,” revealed<br />
Product Engineer, Bruce Williams.<br />
“The new bearings have higher specs.than<br />
we’ve had before,and have been designed for<br />
Ford and Holden and gives us an extra string<br />
to our bow here in Australia.We haven’t been<br />
terribly strong in this area before, so now we<br />
have a range that can compete with imports.”<br />
Bruce said the bearings had been released<br />
in New Zealand in September, and there<br />
had been small releases in Queensland.“This<br />
new series will eventually replace the series<br />
in the re-build kits.<br />
“In the metallurgy, the main improvement<br />
was the conrod bearings where we<br />
created a harder steel backing,to improve their<br />
strength.We also improved the chemistry in<br />
the overlay.We’ve been able to put a higher<br />
fatigue strength overlay on the bearings, by<br />
changing our processes.”<br />
He said the improved range gave <strong>ACL</strong><br />
Bearings what was called three-quarter<br />
grooving across the range, where previously<br />
it was featured on just Australian domestic<br />
engines.“As well as extending the range,we’ve<br />
added some additional undersize bearings,<br />
to expand the range for high performance<br />
rebuilders,so they have a choice of clearance.”
A FOCUS ON <strong>ACL</strong> BEARING COMPANY<br />
The team responsible for the introduction of the Kanban system into the Powder Metallurgy plant (L-R) - Paul Johnstone, Graham Milbourne, Maureen Cadman and Phil Dowl (absent Peter Longman).<br />
KANBAN SYSTEM INTRODUCED<br />
AT BEARING COMPANY<br />
To explain what the recently adopted<br />
Kanban system means to production,<br />
we asked somebody who has been involved<br />
in introducing the manufacturing system<br />
to a number of Australian companies.<br />
<strong>ACL</strong> Bearing Company’s Planning &<br />
Procurement Manager, Darren von Stieglitz,<br />
said:“Kanban is a visual planning system<br />
built around a ‘pull system’ of manufacturing<br />
rather than a ‘push system’.<br />
“Customer demands pull the system<br />
and that in turn necessitates production of<br />
parts. It’s a replenishment system based<br />
around issues such as delivery lead-time,<br />
batch quantities, production capacity, set-up<br />
times and production cycle times. It all<br />
starts in the warehouse, and is based upon<br />
a pre-determined order point calculated<br />
on demand for the product/ parts. Once<br />
a part is called up, it triggers a message<br />
(“Kanban”) for the up-stream work centre<br />
to replenish the product/parts taken.”<br />
Darren said Bearing Company’s Kanban<br />
system was a hybrid of the pure Kanban<br />
method due to implications relating to<br />
available technology, machine capacity and<br />
set-up times.<br />
“OEM’s for a long time, have worked<br />
with Kanban and it’s notable that car<br />
companies were among the first to adopt<br />
the system in Australia. It works and is a<br />
proven planning/replenishment technique.<br />
Gasket Company has had the system for<br />
some time, although you can’t exactly<br />
replicate what they do up there, as every<br />
operation is different.<br />
“Jim Degnian came down from<br />
Brisbane in February with the vision to<br />
introduce Kanban at Launceston.We had<br />
been working an MRP system (Materials<br />
Requirement Planning), which is a push<br />
system based on forecast. And we know<br />
how forecasts can be wrong.With Kanban<br />
you don’t even have to be involved in the<br />
production to see what’s going on as the<br />
status and visual nature of the Kanban<br />
cards tell you.”<br />
Plant 3 was chosen as the initial<br />
operation for the introduction of Kanban<br />
into Bearing Company due to the compact<br />
size and stand alone nature of the powder<br />
metallurgy production process.The majority<br />
of Plant 3’s customer base are also OEM<br />
customers. “One of the complexities we<br />
face is that we have a number of product<br />
lines which are make to stock items which<br />
Kanban controls very well, but equally we<br />
have other products which are made to<br />
order,” he said.“We’re targeting 72 make<br />
to stock items to get them up on Kanban,<br />
while the made to order items will remain<br />
MRP driven at this stage to ensure visibility<br />
of long lead time raw material<br />
requirements.”<br />
Darren said the advantages of the<br />
system are that it’s visual; it eliminates waste<br />
and associated costs; it’s pull rather than<br />
push which reduces lead times and reduces<br />
overall inventory levels. This also helps<br />
reduce the risk of product obsolescence.<br />
“Kanban was physically introduced into<br />
Plant 3 during June of this year and I believe<br />
it will be operating to expectations by<br />
Christmas. Some preliminary work in the<br />
Bush-Line section in Plant 2 has commenced<br />
in readiness for the introduction of Kanban<br />
into this plant in the near future. At the<br />
end of the day, Kanban will create a higher<br />
level of customer satisfaction due to us<br />
having finished product available when<br />
they need it.”<br />
Production Scheduler, Graham<br />
Milbourne, added that it’s a system that<br />
reveals the problems rather than covering<br />
them up.“With this system, you only make<br />
what your customer buys, as opposed to<br />
making a lot of products in expectation of<br />
selling them. In the old system the more<br />
you made the cheaper the unit cost but<br />
you then had to hold the stock.”
NEW ALCOHOL AND OTHER<br />
DRUGS POLICY OUT TO HELP<br />
et’s be clear,” explained Andrew Flood<br />
‘‘L when discussing Bearing Company’s<br />
new Alcohol and Other Drugs policy with<br />
the <strong>ACL</strong> REPORTER,“we are not out to<br />
police our employees.While we have had a<br />
policy for some time that alcohol can’t be<br />
consumed on the site, we realised that this isn’t<br />
sufficient to ensure those attending work do so<br />
in a safe environment.It’s not only a safety issue<br />
for themselves but for their fellow employees.”<br />
An agreement was reached with the<br />
unions in a previous Enterprise Agreement,<br />
that <strong>ACL</strong> would explore a policy of promoting<br />
the importance of having a drug and alcohol<br />
free work environment.The Bearing Company<br />
Safety Committee established a sub-committee<br />
composed of representatives across all plants.<br />
“Rob Hodgetts from the Tool Room<br />
chaired the group, and besides myself, we<br />
also had Shirley Schroeter our occupational<br />
health nurse on the committee. We also<br />
had input from Dr Alex Thompson the site<br />
consulting doctor, who raised a few issues<br />
and contributed,” said Andrew. “What we<br />
didn’t want to move to, was random alcohol<br />
and drug testing.<br />
“The time we would generally test for<br />
this type of thing would be pre-employment,<br />
and if there was an accident or near miss on<br />
site, where drugs or alcohol might have been<br />
a contributor. But if it was clear that nothing<br />
Members of the Drug and Alcohol Committee (left to right) Robin Cocker,Andrew Flood, Robyn Harrison,<br />
David Dornauf and Rob Hodgetts (absent Shirley Schroeter and Ross Stevens).<br />
of the sort had caused the problem, we<br />
wouldn’t test.The only other occasion would<br />
be if there was a report.”<br />
Andrew said through education and<br />
promotion,it was hoped that should someone<br />
attend work under the influence of alcohol<br />
or other drugs,other employees would realise<br />
the potential risk, and report the matter<br />
to their supervisor.“We are introducing the<br />
programme by Team Communications at<br />
each Team meeting, and through this we<br />
hope to explain that it’s other employees<br />
health that can be at stake.<br />
“We currently have no procedures in<br />
place if somebody does attend work and<br />
looks intoxicated. We need something so<br />
everybody understands the serious consequences<br />
that an affected worker can cause.”<br />
TAEKWONDO CHAMP SETS HIS<br />
SIGHTS ON AUSTRALIAN TEAM<br />
W<br />
hen you’ve been part of the<br />
Launceston martial arts community<br />
as long as Jason Cassidy, you quickly know<br />
who’s good and who’s not.<br />
A trainee machine setter at <strong>ACL</strong><br />
Bearing Company, Jason’s ambition is to<br />
be part of the Australian team competing<br />
at the World Taekwondo Championships<br />
in Seoul next year.<br />
“At the moment, I’m training 5-6<br />
times a week but hopefully by next year<br />
I’ll be doing 10 sessions a week,” declared<br />
Jason. No newcomer to the sport, Jason<br />
has been competing for the past 16 years.<br />
He was a national champion from 13 to 18,<br />
and attended the World Juniors in Barcelona<br />
where he won through to the top 16.“I was<br />
picked to be in the Australian team for the<br />
Athens Olympic trials held in Korea; a group<br />
made up of 4 men and 4 women. Unfortunately,<br />
I hurt my back and also had to<br />
give it away for a year to help my feet heal.<br />
Competition consists of two 3-minute<br />
bouts and from the semi onwards, there<br />
are three 3-minute bouts.“You score points<br />
by landing punches on the body, and<br />
comparing Taekwondo to other martial<br />
arts sports, Taekwondo is like amateur<br />
boxing.You don’t try to kill each other.”<br />
Jason also represented Tasmania in a<br />
Taekwondo tournament in New Zealand,<br />
where he won the New Zealand Open,<br />
against teams from New Zealand and the<br />
Pacific Islands.“I’ve been doing it for so<br />
long now that training and competing are<br />
part of my life,” he said.<br />
Best of luck Jason for the competition<br />
ahead.
GASKET COMPANY<br />
ACHIEVES FIRST WITH<br />
REPORTING CHANGES<br />
FORMER<br />
FORKLIFT REP.<br />
HAS HIS FEET<br />
FIRMLY<br />
ON COMCORK<br />
FLOORING<br />
New Sales Manager at Comcork,<br />
Secondo Gastaldello, has sold<br />
forklift trucks for some of Australia’s<br />
leading companies. These days, his feet<br />
are firmly on the floor selling Australia’s<br />
best-kept secret - Comcork flooring.<br />
“What appealed to me about this<br />
position was the challenge of trying to<br />
push the product forward,” revealed ‘Sec’.<br />
“It’s a niche product that nobody else in<br />
Australia makes, and it really is one of<br />
the best-kept secrets I’ve come across.<br />
“Being made from rubber and cork<br />
offers users real benefits. In the short<br />
period I’ve been with the company and<br />
visiting architects, I can see the benefits<br />
of offering an economically sustainable<br />
product. It’s really creating a lot of interest.<br />
Architects are driven by the market, and<br />
the market is saying we want products<br />
that are good for the environment.”<br />
He said he’s confident that in the<br />
future, more and more people specifying<br />
flooring, will be using Comcork Walk<br />
Easy and other Comcork products.In the<br />
period ‘Sec’s’ been with the company,<br />
substantial new sales have been made<br />
across a number of areas, with more in<br />
the pipeline.<br />
In his spare time, it’s soccer and golf<br />
for the married Sales Manager, who plays<br />
centre mid-field for the Pascoe Vale soccer<br />
club,which has won its divisional competition<br />
three times in a row.<br />
The Financial Team (L-R):Terry Witham, Lorraine Foran, Graeme Fraser, Bob Jackson and Margaret Blake.<br />
The end of month reporting process has<br />
been turned on its ear as <strong>ACL</strong> Gasket<br />
Company streamlined the way it undertakes<br />
the function. Gasket Company’s new General<br />
Manager, Steve Smee explains.<br />
“Traditionally it has taken us 3-5 days to<br />
do the end of month accounts. So steps were<br />
put in place, and through some very good<br />
work by our financial team with Smartlink<br />
journal processing assistance from Lyette at<br />
MAHLE-<strong>ACL</strong>, we have reduced that time<br />
to around a day.<br />
“We now have our reconciliations being<br />
done on a daily basis in many areas, and this<br />
has given us tighter control over our financial<br />
performance. It has also paved the way for<br />
us to move towards a one-day processing of<br />
end-of-month journals, and profit results.<br />
Which in turn has enabled us to complete our<br />
end of month reports faster & with greater<br />
confidence. So the process improvements<br />
we’ve made have been fairly significant.”<br />
Steve said the team consisted of Graeme<br />
Fraser as Team Leader and Terry Witham,Bob<br />
Jackson, Margaret Blake and Lorraine Foran.<br />
Lorraine, said Steve had been instrumental<br />
in bringing forth the changes and<br />
reviewing the way things were done.“It has<br />
been a good implementation to our visual<br />
management programme,” he said.<br />
Lorraine said reporting for <strong>ACL</strong> 2 (the<br />
company accounting package), formed the<br />
basis of the balance sheet, and everything<br />
was pivotal to this.“This has to balance and<br />
reconcile.What we are getting away from is<br />
doing the journals, balance sheet, and <strong>ACL</strong><br />
Reports, and at the end of that the general<br />
ledger reconciliations. We decided to pull<br />
the reconciliation forward so that when we<br />
did the journals, and reconciliations we’d<br />
know the balance sheet is all reconciled.<br />
“This means you have a high level of<br />
confidence in your monthly performance<br />
results and balance sheet. Processing the<br />
information daily means you can see a<br />
problem earlier, and any out of balance areas<br />
are corrected as you go.We’re not waiting<br />
until the end of the month to find problems.<br />
Another benefit is we don’t have to wade<br />
through pages of print-outs - we have converted<br />
them to downloads which go on to a<br />
spread sheet, so it’s a lot more automated.”<br />
The team then split the <strong>ACL</strong>2 into sections<br />
showing cash, receivables, stock, debtors,<br />
creditors etc. Prompts have been installed in<br />
the system, which call for Yes answers and<br />
verifies that everything is correct.<br />
“Any daily problems are highlighted and<br />
resolved then and there,” added Lorraine.<br />
“They’re signed off by the accounts person<br />
and checked by our Financial Controller.<br />
The new system has saved a lot of time and<br />
doesn’t cause a backlog for the next month.<br />
Not only do you get the end of month<br />
accounts completed quicker, but you have<br />
greater confidence that they are correct.”
<strong>ACL</strong> - SELLING AROUND THE WORLD<br />
A BUSY YEAR IDENTIFYING<br />
MARKETS BRINGS RESULTS<br />
The International Team (L-R):<br />
Gregory Tait, Antony Pearse and<br />
Shemek Wisniewski<br />
<strong>ACL</strong>, like many Australian manufacturers has to look beyond<br />
Australia’s shores if it is to maintain jobs here and grow the<br />
company. Antony Pearse, President of <strong>ACL</strong> International, and<br />
his team scan the world for business opportunities.<br />
CL REPORTER” caught up with<br />
‘‘A Antony and Shemek Wisniewski<br />
<strong>ACL</strong>’s Regional Manager for Europe and<br />
the Middle East, prior to Antony’s quick<br />
visit to Malaysia, Singapore, the UK, France<br />
and the USA. We asked him for his<br />
assessment of 2003 in terms of selling<br />
<strong>ACL</strong> products internationally.<br />
“The best way to summarise our<br />
international trade position in 2003 is to<br />
say it’s been a year with a lot of change -<br />
created by the world economic situation.<br />
While the international terrorism problem<br />
hasn’t had a direct impact on automotive<br />
part sales, it does have a ‘knock-on’ effect<br />
as far as people’s confidence goes.This has<br />
been particularly true of the US economy.<br />
“We export and sell to, in excess of<br />
fifty countries around the world.And while<br />
bearings are certainly the door opener for<br />
us, when we’re speaking to potential customers<br />
we can also discuss other parts of<br />
the business like pistons, rings and gaskets.”<br />
Antony said in a number of markets<br />
<strong>ACL</strong> has had good success selling gaskets,<br />
pistons and rings which hadn’t been<br />
possible in the past.<br />
The Middle East - an emerging market for <strong>ACL</strong><br />
He said over the last twelve months the<br />
company had concentrated on improving<br />
and emphasising its quality, particularly in<br />
North American markets.“We have some<br />
unique products that other manufacturers<br />
don’t offer. Examples are bearings for<br />
particular applications, and short runs on<br />
products that other companies haven’t been<br />
interested in manufacturing.”<br />
He explained that <strong>ACL</strong> had obtained<br />
some significant business in the US, purely<br />
by following through and finding out the<br />
customers’ requirements and developing<br />
a bearing to meet that need. “However,<br />
it is a very competitive market. In one<br />
instance, after all the testing was done on<br />
the bearings we supplied and which proved<br />
successful for the application, our competitors<br />
are now bending over backwards in<br />
an attempt to obtain that business.”<br />
<strong>ACL</strong> faced stiff competition worldwide<br />
and this depended on the market<br />
location.“Our greatest competitors in the<br />
US come from local manufacturers, and<br />
that’s the same for Europe.<br />
“This year we’ve done an incredible<br />
amount of travelling visiting customers,<br />
and there are a number of markets where<br />
we have very strong distribution.There are<br />
other markets which present a challenge<br />
to ensure stronger representation.”<br />
Antony said promoting <strong>ACL</strong>’s product<br />
range often comes back to the efforts of<br />
the distributor. Often he said, it doesn’t<br />
need millions of dollars in support.“We<br />
recently saw it in South Africa where the<br />
difference between our bearings - which<br />
are bored and competitor’s bearings, which<br />
are broached - was strongly identified.<br />
The market there has a strong preference<br />
for an aero bored bearing because of the<br />
quality and that wasn’t achieved with a<br />
million-dollar promotion but unique selling<br />
proposition.”<br />
He believes Europe offers some very<br />
good prospects for 2004 and some old<br />
prospects have been revitalised.“The US<br />
has some very interesting opportunities<br />
which we are working on. Furthermore,<br />
the Middle East has been outstanding for<br />
us over the past year.We’ve really built on<br />
that because of what Shemek has done<br />
through identifying customers.”<br />
Las Vegas - Location of the recent US Trade Fair
<strong>ACL</strong> - SELLING AROUND THE WORLD<br />
GREAT PRESENCE EVERYWHERE<br />
IS SHEMEK’S AMBITION FOR 2004<br />
Agoal of having <strong>ACL</strong> product recognised<br />
in 80-90% of the countries of Europe<br />
is what Shemek has set his sights on for 2004.<br />
“I think we shall see stronger sales across<br />
Europe and I’d like to see sales in markets<br />
we haven’t sold to in the past.<br />
“I handle Europe and the Middle East,”<br />
he said,“and in the Middle East, our brand<br />
wasn’t as well known as in Europe. However,<br />
sales are occurring faster there than in Europe,<br />
once the product is on the shelf and the<br />
customer can see it.Over the last six months,<br />
we have seen a very large number of inquiries<br />
coming from the Middle East areas we are<br />
selling in.<br />
“Australia’s vehicle export drive has<br />
helped,” he said,“Because the market knows<br />
vehicles are coming from Australia, Australianmade<br />
products are being sought after and<br />
these are sold through distributors. We are<br />
currently selling to countries like U.A.E.,<br />
Iran, Saudi Arabia, Syria, Jordan, Lebanon,<br />
and we’re looking at surrounding markets,”<br />
he said.“These have similar requirements for<br />
the range of cars and engines available there.<br />
“The presence of our competitors in<br />
the region for over thirty years means that<br />
introducing a new brand is difficult. Japanese<br />
manufacturers have particularly well established<br />
brands and are determined to hold their<br />
market share by offering very low prices.”<br />
Shemek believes good opportunities still<br />
exist in Central and Eastern Europe.“I have<br />
just come back from Russia, and there is a<br />
large and expanding market with potential<br />
for us. However, there are a lot of competitors<br />
evident and over the next few months we’ll<br />
have a better understanding of the market.<br />
“Some of these European markets are<br />
fairly small and are serviced by the customers<br />
we already have. For instance, customers in<br />
Poland look after export to some of the<br />
surrounding markets. Hungary, whom we<br />
also sell to, looks after smaller customers in<br />
other countries.”<br />
APPRECIATING DOLLAR AFFECTS SALES<br />
<strong>ACL</strong> Regional Sales Director Tan Kit Long (right)<br />
with Mr Chiam Eng Huat (left) and Mr Ng Seng Keen (centre) both from SK Auto Parts Sdn Bhd, Kuala Lumpur<br />
The currency fluctuations during the<br />
past twelve months have had a serious<br />
affect on sales in South East Asia. The<br />
Australian Dollar appreciated 30% against<br />
Malaysian Ringgit while other currencies<br />
increased by 10-15%.<strong>ACL</strong>’s Regional Sales<br />
Director Tan Kit Long - an employee with<br />
more than ten years experience selling<br />
<strong>ACL</strong> products - said the strong Australian<br />
currency and the slow down of sales in<br />
Asia had all taken their toll.<br />
“There’s a difference between the<br />
countries I cover, in the way I sell our<br />
products, the way we have to declare the<br />
goods, and the forwarding requirement<br />
of each country,” Kit Long said, when<br />
reviewing the challenge of selling to<br />
Malaysia, China, Indonesia, Viet Nam,<br />
Singapore, the Philippines, and Bangladesh.<br />
“I try to visit all of them every two<br />
or three months, and the most popular<br />
product range we sell are <strong>ACL</strong> Bearings.<br />
It’s very tough selling pistons and gaskets,<br />
although we sell gaskets into Indonesia.<br />
Kit Long said brand awareness has<br />
continued to increase amongst the distributors,<br />
and these distributors supply engine<br />
parts to engine rebuilders and retail outlets.<br />
The ASEAN Free Trade agreement<br />
is fourteen months away and this will<br />
reduce the tariffs on imported vehicles<br />
and parts. Because of the uncertainty of<br />
what this will do to vehicle prices, many<br />
Malaysians are choosing to keep their old<br />
cars until the picture becomes clearer.<br />
“This is good for <strong>ACL</strong>,” said Kit Long<br />
“as these cars will need extra servicing<br />
and parts. We face stiff competition in<br />
China where competition is very tough<br />
and where we now have to find suitable<br />
distributors.<br />
“There are a lot of joint ventures there<br />
with European companies supplying the<br />
technical know-how. The most popular<br />
car in China, the VW Santana, has about<br />
2 million units on the road”.
DIVERSITY IS KINGIN<br />
LATIN AMERICAN MARKETS<br />
If you ever thought that the<br />
countries within South America<br />
were similar, then you haven’t<br />
spent time talking to <strong>ACL</strong>’s<br />
Regional Manager for Latin<br />
America, Raymond Rondon.<br />
Raymond, who’s been with the company<br />
for almost six years, said that while<br />
many of the nations that make up the South<br />
American continent have historical roots from<br />
Spain or Portugal, their automotive parts<br />
markets are totally diverse.<br />
“All the nations that make up Latin<br />
America and the Caribbean are highly dependent<br />
on how the government performs<br />
economically, and these governments<br />
influence sales,” explained Raymond.“The<br />
economy has a flow-on effect for sales. In<br />
the past,Venezuela had a strong economy<br />
but since the change of government the<br />
economy has experienced a downturn.<br />
“The countries where things are moving<br />
The sales team at Rehispana/<strong>ACL</strong><br />
well include Colombia, Chile, Guatemala and<br />
El Salvador which have all had good growth.<br />
Brazil continues to be a powerhouse, and<br />
it’s an important market for us. It’s a highly<br />
competitive market,with local engine bearing<br />
manufacturers holding strong positions in<br />
the market.”<br />
Raymond said he spends between 30 to<br />
40% of his time travelling to visit customers.<br />
Within the region,<strong>ACL</strong> distributes through<br />
wholesalers as well as retail outlets and chains.<br />
“These chains are very specific for engine<br />
parts and today the biggest competitors are<br />
the Japanese manufacturers.When you add<br />
the Mahle group’s Brazilian production you<br />
can see it’s a very competitive environment.”<br />
(L-R): Mr Hugo Duarte, Rehispana Salesman, Bogota Colombia, Mr Jorge Mora,<strong>ACL</strong> Rehispana ( Colombia) Agent,<br />
Mr Luis Discamargo, Colombian <strong>ACL</strong> Customer, Bogota Colombia, Raymond C. Rondon,<strong>ACL</strong> Regional Manager.<br />
“The markets are different for each<br />
country you sell to,”said Raymond.“Venezuela<br />
is a US vehicle market. 50% of its car population<br />
comprises American vehicles. Another<br />
50% is represented by Japanese and Korean<br />
cars with a high preponderance of Hyundai<br />
and Daewoo. Some of the Daewoos in Latin<br />
America are fitted with the Holden Family<br />
2 engine.”<br />
“Colombia’ market consists of Japanese<br />
makes with larger type vehicles.In Argentina,<br />
Chile, and Brazil there are mainly European<br />
vehicles, with Japanese and Korean makes<br />
supplementing the market.<br />
“Bearings,” Raymond explains,“are the<br />
most important product he sells, with gaskets<br />
being a much slower mover because of the<br />
strong competition from the US and Europe<br />
as well as local manufacturers.<br />
“We do sell some pistons and have<br />
undertaken customer education nights, given<br />
away T-shirts and supplied catalogues, but<br />
we need to do more. Brand image is a very<br />
important factor in Latin America, and we<br />
need to address promoting the brand more<br />
aggressively, in order to counter Chinese and<br />
Japanese manufacturers.<br />
“<strong>ACL</strong>’s quality stands up exceptionally<br />
well against other brands and has an excellent<br />
reputation. Our problem is that the counter<br />
salesmen don’t know the brand, and that’s why<br />
we need a program which involves gradual<br />
reinforcement of our brand and products.<br />
We’re always looking for new business and<br />
are constantly receiving enquiries from new<br />
customers.We ARE penetrating the market<br />
but it’s not a one-day deal.”<br />
Left to right: Dr. Miriam Moreno de Mora - Assistant Manager<br />
Rehispana, Sonia Perez - Rehispana/<strong>ACL</strong> Sales Coordinator,<br />
Hugo Duarte - Rehispana/<strong>ACL</strong> Salesman,<br />
Astrid Manrique - Rehispana/<strong>ACL</strong> Sales Coordinator and<br />
Edwin Jimenez - Rehispana/<strong>ACL</strong> Salesman.<br />
<strong>ACL</strong> agent Rehispana recently celebrated their 30th Anniversary.<br />
Enjoying the occasion was <strong>ACL</strong> Regional Manager Raymond<br />
C. Rondon (second from left) with the Rehispana team.
MAHLE’S FREE FLOWING<br />
INFORMATION POLICY ASSISTS<br />
AUSTRALIAN MANUFACTURING<br />
years,Nigel unashamedly admits that starting<br />
with the Repco Company and being part<br />
of the Repco Brabham racing car project,<br />
were two of his career highlights.<br />
“I was lucky to work for the Repco<br />
Brabham team in a junior capacity, and I<br />
have looked after both the Repco Brabham<br />
BT19 and Matich SR4 cars for many years<br />
with continuous involvement with them<br />
longer than anybody else. I started out as a<br />
cadet and had the least contribution of<br />
anybody, but made my intentions clear once<br />
I knew they were building racing engines,<br />
that I wanted to be part of it. Luckily Repco<br />
‘broke the rules’and let me start in the engine<br />
laboratory rather than in a factory as was<br />
the custom with cadets.”<br />
<strong>ACL</strong>’s Chief Engineer - Nigel Tait<br />
he association between <strong>ACL</strong> and<br />
‘‘T MAHLE has been fantastic,” declared<br />
<strong>ACL</strong>’s Chief Engineer, Nigel Tait, when<br />
asked how the new factory and relationship<br />
was working out.“It’s brought a new level<br />
of technology to us. Previously, we’d only<br />
been involved in licensing agreements for<br />
one product, now we’ve strengthened that<br />
relationship to a joint venture.<br />
“We have complete access with no<br />
limitations for both pistons and rings, to a<br />
degree we could never have contemplated<br />
before. We’ve never had such a complete<br />
open-door policy, and MAHLE’s technology<br />
is by far the best in the world. Ian Veale and<br />
I and many others here have visited various<br />
MAHLE facilities and know what they’re<br />
developing,and we know they’re ahead of the<br />
rest.The new venture here with MAHLE has<br />
allowed us to get the new Holden HFV6<br />
business, and getting that business necessitated<br />
our moving to a greenfield site in order to<br />
better house the new MAHLE casting and<br />
machining plant. Anybody who worked at<br />
Maidstone has witnessed the huge improvement<br />
we’ve had in working conditions.<br />
“Mahle has a huge R&D capability in<br />
Germany as well as a considerable resource<br />
in America. MAHLE Technology Inc. (MTI)<br />
in Detroit has in excess of 100 working on<br />
pistons, bearings, and ring development.<br />
That’s just their research lab.At their plants in<br />
Mexico, Brazil and Tennessee, they undertake<br />
research as well. So it’s an enormous R&D<br />
Ian Veale<br />
capability and it will provide MAHLE-<strong>ACL</strong><br />
with a wonderful opportunity for taking on<br />
more ambitious projects in the future.”<br />
The new <strong>ACL</strong> Technical Centre currently<br />
being built at the MAHLE-<strong>ACL</strong> Laverton<br />
site, is still owned by <strong>ACL</strong>.“The reason for<br />
this,” explained Nigel,“is the continuing need<br />
to provide ongoing engine and components<br />
testing capability for <strong>ACL</strong> Bearing and<br />
<strong>ACL</strong> Gasket Company projects as well as<br />
for MAHLE-<strong>ACL</strong> Piston Products. With<br />
Maidstone closing, the company felt the best<br />
place to build a new technical centre would<br />
be in Melbourne, as it’s the centre of the<br />
Australian automotive industry. There was<br />
sufficient room at the new MAHLE-<strong>ACL</strong><br />
site, so we’re building a facility that offers us<br />
the same capacity and which will be up and<br />
running before the commencement of 2004.”<br />
Having been with the company for 38<br />
The Repco Brabham BT19<br />
Another milestone for the highly<br />
experienced engineer, was when he was<br />
sent to the UK to work a short time with<br />
Brico, and Glacier Bearing Company, both<br />
licensors of Repco manufacturing companies.<br />
He was involved with development of a<br />
petrol injection system at Brico, and bearing<br />
design and testing at Glacier. “The experience<br />
of working in an overseas environment and<br />
with engineers at companies licensing us<br />
was invaluable and paved the way for some<br />
long-lasting and special relationships.”<br />
When the Repco management buy-out<br />
occurred in 1986, Nigel was invited to join<br />
the fledgling <strong>ACL</strong> as one of the nine in the<br />
buyout group and has held the position of<br />
Chief Engineer for the past seventeen years.<br />
“We’ve always agreed on everything, so it’s<br />
been a terrific and good relationship,” he<br />
said. “As far as management buy-outs go,there<br />
aren’t too many that survive more than 3-4<br />
years let alone 17 years. I have the greatest<br />
respect for everyone I’ve worked with over<br />
those years.”
MAHLE-<strong>ACL</strong>PP EARNS<br />
ENVIRONMENTAL AWARD<br />
With the guidance of Russell Flanders,<br />
MAHLE-<strong>ACL</strong>PP Environmental<br />
Co-Ordinator and his team, MAPP has<br />
been accredited with the much sought-after<br />
ISO14001 accreditation.<br />
Nata Certification Services International,<br />
the accreditation auditors, conducted the<br />
assessment audit in late September. MAPP<br />
passed the audit with flying colours and<br />
now has the certificate proudly displayed in<br />
the foyer.<br />
Russell said he would like to thank,<br />
Phil Warren from Bearing Company and all<br />
MAPP personnel for their assistance during<br />
the development and implementation of the<br />
system.<br />
He indicated that MAPP is fortunate in<br />
that it is now in a new factory and many of<br />
the environmental issues have been addressed<br />
in the Laverton site’s design. “The most identify our environmental risks by reporting agement system now in place, we are well<br />
significant environmental aspects, are the and controlling any issues that may arise. positioned to abide by all government<br />
possibility of spills and contaminated storm Cleanaway have built and now operate our legislation and minimise our impact on the<br />
water, leaving the site and the treatment of effluent treatment plant which allows us to environment.This will ensure that we contribute<br />
to the well-being of our environment<br />
chrome plating discharges.<br />
concentrate on other areas of the plant.”<br />
“MAPP has set in place procedures to With the ISO1401 environmental man-<br />
for now and future generations.<br />
THE HSV6 POWERCELL EMERGES<br />
FROM LAVERTON NORTH PLANT<br />
It was something of a “red-letter day” when the first HSV6 Powercell was<br />
finally assembled and ready at MAHLE-<strong>ACL</strong> North Laverton plant.<br />
The engines, according to Group<br />
Leader, Simon Parker, will go into<br />
part production this year with a 3.6L<br />
version for export to Mexico for a Buick<br />
cross-over vehicle. Mid next year, volumes<br />
will increase to 600 units per day when<br />
the engine is also introduced into the local<br />
Holden Commodore.<br />
“MAHLE in America and Germany<br />
undertook the design work for what has<br />
been a lengthy program,” explained Simon.<br />
“Here at Laverton we are involved in the<br />
casting, machining and assembly of the<br />
Powercells utilising new equipment that<br />
was supplied from MAHLE in Germany.<br />
“The pistons are made locally while<br />
the actual assembly is a bit of a United<br />
Nations effort, where we made the pistons;<br />
the rings for the export versions came<br />
from MAHLE COFAP in Brazil and the<br />
rods were supplied from MAHLE Mexico.<br />
Next year for the local program, we will<br />
also be manufacturing the rings.”<br />
Simon said the awarding of this order<br />
a couple of years ago resulted in the move<br />
to the new site.“We believe the contract<br />
will go for a minimum of five years and<br />
over that time, there will be other models<br />
coming to fruition. At the moment there<br />
are three engine types, a 2.8L, 3.2L and<br />
3.6L and with possibilities of other variants<br />
for the future.<br />
He said the order will fill the capacity<br />
of the new plant which will be working<br />
a single shift until March next year and<br />
from then progressively add a second and<br />
third shift to fulfil the requirements.<br />
“At that point, we’ll certainly need<br />
more employees and we’ve already started<br />
to recruit new people with two engineers<br />
joining us, and we’ve plans to expand the<br />
production areas as volume increases.”<br />
Simon Parker (right) with Terry Spiteri
COMCORK SAILS INTO SYDNEY<br />
Comcork WalkEasy White has made a grand appearance at the Sydney Opera House when it was selected<br />
to be the flooring for a gallery within the giant complex.While called the Opera House the building of sails<br />
is a lot more and acts as the venue for opera, ballet, drama, plays, musicals, and exhibitions.<br />
General Manager Daniel DeDomenico<br />
said that the Opera House installation<br />
was one of a number of installations the<br />
company had successfully tendered for<br />
over the past six months.“The prestigious<br />
nature of the job makes everyone pleased,<br />
but we are also laying flooring in a number<br />
of large installation, at Port Melbourne<br />
Library; Melbourne Grammar School;<br />
Woolworth’s trolley bays, and the QV<br />
Building complex in Lonsdale Street<br />
Melbourne, which is on the site of the<br />
old Queen Victoria hospital, and which<br />
will be a city within a city.<br />
“Our first shipment for the USA has<br />
left Australia, and with increased marketing<br />
being done over there by our distributor<br />
and <strong>ACL</strong> Marketing, we’re hoping a lot<br />
more orders will be following.”<br />
PHIL MAKES IT A DATE IN ROTORUA<br />
The picturesque central North Island<br />
tourist destination of Rotorua is also<br />
the location of a Repco branch which is<br />
particularly successful in selling <strong>ACL</strong> product.<br />
Branch manager, Des Wenmoth, promotes<br />
an annual trade sale/special day, featuring<br />
the attendance of selected key suppliers, such<br />
as <strong>ACL</strong>.<br />
<strong>ACL</strong> General Manager Phil Anderson<br />
was seen representing the <strong>ACL</strong> range, with<br />
performance and heat shield a major focus.<br />
Visiting apprentices were particularly interested<br />
in development of the RACE range with<br />
the new ‘H’ type bearings, and the increasing<br />
possibility of a range of forged pistons.<br />
The promotional part of the day began<br />
at 3.00pm, finishing at 8.00pm, which ensured<br />
that a trip to the geothermal splendours of<br />
Rotorua were not purely ‘thermal relaxation’<br />
for Phil.<br />
Repco trade counter specialist Bella, on extreme right,<br />
discussing RACE product with customers.<br />
An automotive apprentice(left) discussing the finer<br />
points of performance bearings with Repco’s Ellen & Katie.<br />
These ladies know there stuff!<br />
<strong>ACL</strong> General Manger, Phil Anderson (right) talking with a trade customer.<br />
YOUR CONTACTS ARE:<br />
Paul Greentree ......................Gasket Company<br />
Briony Gardner......................................... MAPP<br />
Yvette Saunders.................. Bearing Company<br />
Warren Dick...............................National Parts<br />
Phil Anderson........................................ ACNZL<br />
Daniel De Domenico............. <strong>ACL</strong> Comcork