GEA's Global HVAC Technology Blog

We have our own language in the HVAC and buildings industry including more than 400 acronyms that we toss around like everone knows what they mean. How often do you stop someone to ask them what BERD is? (Office of Building Energy Research & Development - DOE). Or just as challenging, our tech talk. Ever wonder what an ebullator is? We now know - "a device inserted in flooded evaporator tubes to prevent the evaporator from becoming oil bound or the refrigerant liquid from becoming quiescent at a pressure lower than its boiling point " according to the just released ASHRAEwiki.

Need to Know what a SEAP is? Wow your friends with "Simplified Energy Analysis Procedure". Or do a little name dropping with the term the Josephson effect.

I do suggest bookmarking this handy little site with a ton of easy to use information that will help bring clarity and understanding to your world.

Editor's Note: CR4 would like to thank Larry Butz, President and CEO of GEA Consulting, for contributing this blog entry.

In a just released survey Boston Consulting Group found 37% of executives at large, US based manufacturing companies "are planning to bring back production to the United States from China or are considering it". This number rose to 48% among executives at companies with $10 billion or more in revenues.

Top factors driving production location:

• Labor costs - 57%
• Product quality - 41%
• Ease of doing business - 29%
• Proximity to Customers - 28%

According to BCG the industries reaching this "tipping point" are;

• Computers and Electronics
• Appliances and Electrical Equipment
• Furniture
• Plastics and Rubber
• Transportation Goods
• Fabricated Metals
• Machinery including air conditioners, heaters and pumping equipment

With labor costs in China increasing 20% per year and more the labor cost advantage is falling to single digits. HVAC manufacturers are re-thinking their manufacturing plans with Mexico seeing increased attractiveness as well as low cost countries such as Vietnam, Malaysia and Indonesia.

Does this mean manufacturers are leaving China? Of course not. Making product to serve the huge China market still makes all the sense in the world.

BCG has an excellent website with more insight and data on the topic of Outsourcing and Reshoring.

Editor's Note: CR4 would like to thank Larry Butz, President and CEO of GEA Consulting, for contributing this blog entry.

The 66th Meeting of the Multilateral Fund (MLF) concluded last week in Montreal with funds being cut, or not approved, for projects that would replace (ozone depleting) HCFCs by ozone friendly (but global warming unfriendly) HFCs. The MLF is the vehicle being used to channel money from developed countries to developing countries to phaseout HCFCs as agreed upon in the Montreal Protocol.

Most developed countries have essentially completed the transition from HCFCs to HFCs and now face the task of preparing for another transition to the primary replacements which include HFOs (which have very low Global Warming Potential, GWP) and Hydrocarbons which are flammable. New ASHRAE standards are being implemented to address the critical safety and toxicity issues associated with the HFC replacements and the HVAC industry faces another huge task of developing and optimizing products for the new refrigerants and their unique properties.

Proposals to convert from ODS to chemicals with low global warming potentials (GWP) were approved at the MLF meeting.

Read the full EIA Press Release

Editor's Note: CR4 would like to thank Larry Butz, President and CEO of GEA Consulting, for contributing this blog entry.

In GEA's Manufacturing Consulting business we design and equip factories around the world for products ranging from 3,000 ton Absorption Chillers to small ceiling mounted fan coils. Our clients range from large established high volume manufacturers to those just starting in the manufacturing business. This blog post is intended for those looking for the Basics on Sheet Metal Forming.

Sheet Metal forming can be classified into five areas:

• Stamping,
• Breaking,
• Drawing,
• Roll Forming
• Spinning.

Stamping includes smaller parts produced by either a single hit or multi-stage progressive dies on medium to high cycle mechanical presses. Fin generation is an example of stamping. Breaking is performed on flat sheet stock producing unit cabinetry parts. Examples are doors, side panels and drain pans, most requiring pre-notched corners. The operation is performed with mechanical or hydraulic brake presses, depending on the stock thickness. Drawing requires a significant material re-configuration and may require several stages or hits to produce the part. Examples are compressor housings, washing machine tubs and auto body parts. Deep draw parts require hydraulic presses such as compressor housings whereas shallow draw heat exchanger halves are produced on higher tonnage mechanical presses. Roll Forming on sheet stock or the final operation on shear to length roll stock lines produces cabinetry parts similar to break forming. Spinning will produce parts similar to draw forming and requires material with a developed blank size. An edge trimming operation is required to remove excess material as with draw forming. Fan orifice and hubs are some examples of this process.

In future blogs we will get into more details on the five steps.

Editor's Note: CR4 would like to thank John Ramsden of GEA Consulting for contributing this blog entry, which originally appeared here.

A recent article in Industry Week online outlined four key steps in having a successful Consulting project. These four keys are essential to the client-consultant relationship and achieving a well-designed result for your investment.

• Gain sufficient buy-in - Unwavering support is needed at the top; the level of buy-in necessary at other levels depends on the project. Assign a Champion.
• Prepare for risks - Poorly prepared clients scramble and flail when the assumptions on which they based their project unexpectedly shift
• Ensure the right resources are at the ready - you are responsible for marshaling four types of competencies: technical (i.e., the right kind of thinking), fiefdom (i.e., the right territories are involved), leadership and communication.
• Securely establish guidance mechanisms - know who's driving, what a shoreline looks like and what those flashing red lights in the rearview mirror might mean.

But wait. We did it again. Off and running before we know what we are going to do. The 5th key, the most important, is the missing Scope Document - the definition of What is going to be accomplished -the number one cause of underperforming projects.

Clients may ask the consultant to make a proposal. This is a poor starting point. If the client cannot articulate what he wants accomplished at the beginning of a project it will likely fail. It is the responsibility of the consultant to help the client articulate his needs and the time spent crystallizing the vision at the beginning of the project is the most important phase of all projects.

Allow the consultant you invest in to deliver a satisfactory project which is the intent of any worthwhile consultant. Follow these keys. Don't let poorly executed planning lead to a poor result.

See Mr. Fields entire article at this link.

Editor's Note: CR4 would like to thank Larry Butz, President and CEO of GEA Consulting, for contributing this blog entry.

In two recent postings we looked back at the evolution of the Procurement (Purchasing) Industry over recent years. Today, I will provide our vision of changes to come and how we might prepare for them.

What Might We See

• Continuation of the trend to view the entire process of procurement, manufacturing and delivery to the final customer as a "Supply Chain" with increased collaboration among all of the links

• Increasing use of technology

• Electronic sharing of information along the entire supply chain. Colgate knows instantaneously when you bar code scan your toothpaste in the self check out line at Walmart. Shouldn't a valve or relay supplier know when their component is sold inside an A/C unit?

• Adaptation of "Smart Phone" technology for use in manufacturing. They can scan barcodes, has anybody done a material receiving APP yet?

• More RFID identification to supplement / replace barcodes to facilitate more automated material control.

• On site computerized part production i.e. dot matrix printers that can "Print" a plastic part currently exist. Will powdered metal, solidified by laser beams be far behind? Beam me up 10 widgets Scotty!

• Improved competitiveness of US / North American manufacturing due to: (Maybe wishful thinking, but?)

• Increased Offshore currency valuations relative to the US dollar

• Increased relative Offshore labor costs as their standard of living improves

• Increased transportation costs, driven by higher energy cost

• Application of technology to reduce labor content

• Localization of procurement / In Sourcing driven by all of the above, plus:

• Better understanding of the total cost of ownership

• Need for increased customer responsiveness

It is clear that Change, New Technology and Speed will be three of the overarching trends.

Editor's Note: CR4 would like to thank Gordon Roberts, Senior Procurement Consultant of GEA Consulting, for contributing this blog entry.