Profiling GEM The Procedure for Manufacturing Processing Systems Definition Budgeting Preliminary Design Customer Feedback Pricing Scheduling Engineering Final Design Review Detailing Procurement Manufacturing Quality Assurance Shipping Startup Support In business since 1969 equipment OF OREGON inc. P.O. Box 359/ 2150 Progress Way Woodburn, OR 97071 Telephone 503-982-9902 Fax: 503-981-6316 Email: gem@gemequipment.com Website: gemequipment.com GEM Equipment of Oregon, Inc. GEM Equipment is a producer of food processing systems. This company's roll is that of a partner with the customer, using the best technology and operating information available from each company, to achieve the optimum processing system for the customer. It is the purpose of this publication to define the steps in the development of a processing system and delineate the strengths GEM provides for the process. After stating our Mission and Operating Philosophy, the steps are listed in outline form with a brief description. Note, that due to accelerated project schedules, it is normal for some of the steps to proceed concurrently. In addition, the exact order of the steps will vary from project to project. Profiling GEM Woodburn Plant Mount Angel Plant Page 2 OUR MISSION GEM Equipment has a mission to make a profit by providing processing equipment designed to meet the customer's needs for specific applications. Customer input is a critical factor. Not only does listening to the customer greatly reduce the chances of not meeting his needs, it also addresses the issue of processing competency. There is no way that GEM, or any other processing equipment manufacturer, can be as savvy about a given process as customer personnel, who are producing the product every day. The best work at GEM is done on those projects that combine this company's and the customer's best technology. Since this only happens when there is a good working relationship between customer and supplier, GEM places a very high value on long term relationships. equipment OF OREGON inc. Modular Lab Fryer OUR OPERATING PHILOSOPHY Part of the Operating Philosophy at GEM is to produce systems with the lowest ten-year total cost of ownership and operation. Costs include purchase price, operation, maintenance, sanitation and energy. Customer service is a critical part of this operating philosophy. When a processor places an order, be it a relatively simple piece of equipment, or a comprehensive system, that customer is trusting this company with a critical part of their operation. To earn this trust, problems in the field must be addressed with a sense of urgency. There is a second reason for aggressive field service. Evaluation of problems reduces the chance of repeating the same mistake and leads to product line improvements. This leads to the third leg of the operating philosophy stool: continuous improvement. Addressing known weaknesses and moving design and manufacturing technology forward are required. Success is determined by how well the equipment performs for the customer. Blancher Two-stage Tote Dumper Page 3 Profiling GEM Our Mission. . . . . . . . Budgeting. . . . . . . . . Preliminary Design. . . . Customer Feedback. . . . Pricing. . . . . . . . . . Scheduling. . . . . . . . Engineering. . . . . . . . Final Design Review. . . Detailing. . . . . . . . . The first step is to define the project objectives. Sometimes, part of Definition. This crucial early step will determine if the project is financially viable. It is not unusual for budgeting to cause a redefinition of the project. Includes flow diagrams, first generation layouts, elevations, and definition of major components. Determines space requirements and supports budgeting. Customer evaluation of the preliminary design. A design review meeting with all parties present is the most effective method of obtaining customer feedback. The first question: Bids from several potential suppliers or negotiated contract with the best-qualified supplier? This stage should produce accurate, firm pricing. On a complex project, comprehensive scheduling is mandatory to assure on time completion. Scheduling needs to include all facets of Engineering, Manufacturing and Installation. Includes: finalized layouts and elevations, selection of standard components, design of custom components, support structures, catwalks, piping systems, etc., stress and fluid analysis, power and heat transfer calculations, selection of materials, and safety review. This is the last chance for all parties to assure that the project objectives are being met. The most effective design review meetings include representatives from the customer's Engineering, Operating, Maintenance, Sanitation, and Quality Control Departments. Design of the parts for each component in preparation for manufacturing. Page 4 equipment Procurement. . . . . . . . OF OREGON inc. All the components that make up a piece of food processing equipment have to come from somewhere. Material and manufactured components are purchased; other components are manufactured in GEM'S plate, machine and fabrication shops and outside shops. Manufacturing. . . . . . . At GEM Equipment, manufacturing consists of computer programming, cutting, forming, drilling, milling, turning, boring, honing, fabrication,welding, cleaning, grinding, polishing, painting and assembly. Quality Assurnace, . . . . This consists of making sure that the customer's needs and GEM standards are met. Quality assurance is a function and responsibility of all employees at each step of the design, manufacturing and installation process. Shipping, , , , , . . . . Installation. . . . . . . . Startup Support . . . . . After Sale Service and Warranty. . . .. . . Shipping consists of scheduling trucks, packing, loading and documenting. Allowing adequate time for shipping is part of comprehensive scheduling. Installation includes setting the equipment, field assembly, grouting, piping, guarding and electrical work. GEM is not licensed for electrical and high-pressure steam fitting. GEM can furnish personnel for technical support during the startup and shakedown period. GEM Equipment can furnish personnel for technical support during the startup and shakedown period. To GEM Equipment, Customer Service means addressing problems in the field with a sense of urgency to assure that negative impact on the customer is held to a minimum. Project Review Meeting. . The primary purpose of this meeting is to assure that all parties will be able to effectively work together in the future. Resolution of any outstanding issues and review of expected improvements for next time should be included on the agenda for this meeting. Page 5 Product? Processing? Volume? Etc.? Customer Project GEM Equipment Components? Floor Space? Startup Date? Etc.? DEFINITION BUDGETING Accurate definition up front will assure that the owner not only gets maximum value for his money, but also gets the system he wants, not the system some supplier thinks he should have. If at all possible, the owner should define the project. A consultant will normally not be efficient when called on for project definition. Too much effort and cost goes into guessing what is required. Some owners try to save consulting fees by having manufacturers, contractors or other suppliers define projects. This works if a standard system is being installed, or if there is a very close ongoing relationship between supplier and owner. GEM can help with definition. For a processing or manufacturing system, good definition includes type of raw product, finished products, processing parameters, product volume, special conditions, and utilities available. This is the time to establish standards for manufactured components, such as motors, gearboxes, bearings, pumps, controls, etc. If the project is preparing to move ahead, definition should also address critical dates, such as date major components will be ordered, availability of floor space for installation, and most important, startup date. Budgeting should include not only the capital investment involved, but also ownership costs, which include operating, energy, maintenance and sanitation. This is the time to determine if the project is financially viable. Will the system produce saleable product at an acceptable cost? This is the time to select major components. GEM can prepare budgets and provide input on operating costs. The budgeting process will often produce information to be used for time tuning definition. Operating? Energy? Maintenance? Sanitation? Page 6 PRELIMINARY DESIGN equipment OF OREGON inc. Preliminary design is based on the project definition and the budget. It often starts with a flow diagram showing all the steps that occur in the process. Layouts and elevations are the primary output of the preliminary design process. These provide input for equipment, support structure, catwalk and operating platform design. Layouts and elevations determine space requirements and should surface any obstructions in existing buildings, plus provide the starting point for electrical and piping designs. Most important preliminary design work furnishes the first opportunity for the owner to make sure his needs are being met. CUSTOMER FEEDBACK Customer driven changes are a fact of life for GEM Equipment. This is a result of custom design, working on big-ticket projects and a desire to be the customer's partner for developing processing systems. Custom equipment is normally not designed until after it is sold. The first chance the customer gets to visualize what has been purchased is when the top drawings are presented for review. Being able to visualize the finished equipment for the first time enables the customer to determine if the equipment could be better or more user friendly. When the equipment is part of a large project both supplier and customer have incentive to make sure the equipment is the best it can be. Once the project is finished, it is very hard to justify additional funding to fix oversights. GEM is often a design partner with customers because the two organizations can do a much better job jointly than either can do alone. As noted in our Mission Statement, there is no way that equipment manufacturers can know as much about a process, as the plant operating and maintenance personnel who work with it every day. An effective partnership combines the processor's food technology and product expertise with the equipment manufacturer's machine design and equipment manufacturing knowledge. For both partners to achieve maximum benefit, the equipment manufacturer must welcome customer driven design changes. Much better to make a change late in the cycle, than have the finished system prove the modifications should have been made. Page 7 PRICING Needless to say, all purchasers want to get the best deal. If you have followed the steps to this point, your project will be well defined, making it possible to get quotations from quality vendors and make the final determination based on price. If it is impossible to accurately define the project or there is a need for secrecy, negotiating price with a trusted vendor and sole sourcing may be a more effective approach. While low initial price is important, it is mot as important as purchasing equipment that will meet the project objectives and be cost effective over the design life. GEM's estimators, have a good understanding of food processing technology and access to professional engineering backup. SCHEDULING Without a comprehensive project schedule, it is almost impossible to complete a complex project on time. GEM's production schedule utilizes a horizontal bar chart superimposed on a calendar. Each day has a vertical column. Jobs are listed vertically on the left-hand side of the schedule. A required for each date is listed in the date's box along the job's bar. A manpower requirement total for each day is listed across the bottom of the schedule. Similar formats are used for engineering and installation schedules. Copies of the schedule for individual projects are available to the project's customer on request. Page 8 FINAL DESIGN REVIEW equipment OF OREGON inc. Before the final design review, it should be decided whether the customer is retaining final design responsibility or it is delegated to GEM. In either case, GEM is responsible for surfacing information about potential problems and to respond to any customer's concerns. If the project is large, it is desirable to include GEM's salesman and project manager, with representatives from the customer's Engineering, Operating, Maintenance, Sanitation and Quality Control Departments in this meeting. The objective of this meeting is to assure all parties that the system has been designed to meet the project definition objectives and provide a last chance for the customer to have the designs fine tuned. DETAILING PROCUREMENT Detailing is the link between engineering and manufacturing. The heavy-duty drive shown above is used on GEM Equipment's large vibrating conveyors. The plan and elevation on the left side of the drawing represents completed engineering. The other views shown in the middle and upper right side of the drawing are detailed parts. The same designer who designs the equipment normally does GEM's detailing. Information for manufacturing parts on one of the company's five computer controlled machine tools is digitally transferred from engineering to shop programming. In an ideal world, engineering, final design review and detailing would all be completed prior to ordering material and components. In the real world, on many projects, manufactured components must be ordered very shortly after GEM receives the order and long before engineering and detailing are complete. Purchasing has the responsibility to make sure that all materials and manufactured components arrive soon enough to avoid negative impact on delivery dates. In addition, manufacture of components by GEM must be scheduled so outside services, such as heat-treating can be completed on time. GEM could not meet required delivery dates without superior performance by many fine suppliers. Page 9 ENGINEERING System design and design of major components usually progress concurrently. Computer Aided Design has greatly eased the insertion of major components into the system design. By the time engineering for equipment, such as fryer, blanchers and batter applicators is started, the equipment has been sized and design review meetings have been held. Most projects are on a fast track, necessitating quick work on engineering calculations necessary to determine final specifications on pumps, motors and gear boxes, etc, so that these components can be ordered in time to ensure that their lead time does not impact project completion. The first step, in design of equipment, is to draw cross sections, elevation and plan views. If critical fluid flows are involved, Computational Fluid Dynamics (in layman's terms: Computerized Fluid Flow Profiling) are used to fine-tune the design to obtain the most desirable fluid flow characteristics. Necessary stress analysis, to aid in selection of material thickness and structural components is done at this time. As soon as major equipment design is far enough along to freeze exterior size and shape, design of support structure, piping, conveyors and other external systems is started. Fortunately, manufacture of these auxiliary components does not take as long as manufacture of the major components. Often the manufacture of a fryer will be over halfcomplete by the time external piping, support structure and catwalks start through manufacturing. MANUFACTURING GEM Equipment's Manufacturing is moving into the computerized control. These machines are considerably more productive and much more accurate than the manually controlled operations they replaced. Currently, GEM has a CNC laser and four CNC vertical machining centers. Departments within manufacturing include Computer Programming, Plate Shop, Laser, Machine Shop, Fabrication and Metal Finishing Page 10 COMPUTER PROGRAMMING The programming department receives digital information in Computer Aided Design format. Utilizing a computer with production software, programmers convert this information into programs for the laser and CNC machine tools. Nesting the parts to obtain maximum utilization of material is an important part of programming for the laser. Machine tool programming requires selection of cutting tools by the programmer. If a digital drawing does not exist for a part to be manufactured by a CNC machine tool, the machining center can be programmed by hand by manually going through the steps in a given process. Downloading through the programming department's computer can save the resulting program. LASER GEM has a large heavy-duty laser that can cut material up to three quarter inch thick. It processes sheets and plates up to five feet wide and ten feet long. Metal cutting lasers use a beam of light to melt the material from the cut. Movement of the cutting head is directed by the unit's computer using a program based on Computer Aided Design information to determine the shape of the cut. Overall, accuracy of parts produced varies no more than two thousandths of one inch. The big savings are achieved by designed equipment to take advantage of the laser's ability to rapidly and accurately cut parts of most any shape. The laser allowed the number of parts in a rabbit ear conveyor head section weldment to be reduced from twelve or fourteen, to five. It also made it possible to develop a slider bed conveyor design that is approximately ten percent less costly to manufacture than conventional design. equipment OF OREGON inc. PLATE SHOP Plate shop equipment consists of two shears, two press brakes, a saw, an ironworker and a small plate roll. This department routinely cuts and forms martial up to sixteen feet long and one half inch thick. While shearing is a low tech relatively old fashioned method of cutting, none of the newer high tech machines can compete with a metal shear for producing simple straight sided parts. The press brakes, which bend parts either sheared or cut by the laser, are capable of forming very complex shapes. At this time, sophisticated punching and heavy rolling and forming are farmed out to other shops. Page 11 MACHINE SHOP The Company's first machine tools were purchased used, in 1989. A visit to the machine shop at GEM is a walk through twentieth century history of American metal cutting. Vintage of the Company's lathes ranges from one manufactured in 1896 to one purchased new by its first owner in 1992. Capacity of the lathes ranges from fourteeninch swing with forty inch between centers, to one with sixty-inch swing and eight feet between centers and one with thirty-six inch swing and twenty-four feet between centers. Moving ahead historically, a visitor would arrive at two 1950s vintage spiral cut gear shapers. These machines, which do not use any electronics, are fully automatic. After a blank is fastened to the table, one of these shapers can cut all the teeth in spiral cut gear without human intervention. GEM uses the gear shapers to cut teeth on internal splines used for fryer and blancher hood jack drive mechanism. Milling operations are performed by late twentieth century CNC machining centers. The oldest of these was manufactured in 1985. The latest addition was purchased new in 2000. The largest, purchased new in 1999 to machine sections of fryer kettles, can process parts up to ten feet two inches long by eighty-two inches wide. Maximum vertical tool travel is twenty-seven inches. In addition, the machine shop has honing and tool grinding capabilities. Development of the machine shop has enabled GEM to manufacture more sophisticated equipment and upgrade existing product line. Blancher belt side chain links are now precision machined, resulting in longer life. All holes and slots that effect oil flow in fryer kettles are machined. Vertical CNC Machining Center Gear Shaper Large CNC Vertical Machining Center Page 12 FABRICATION equipment OF OREGON inc. Fabrication consists of fitting parts together, welding and final assembly. Fabricators have to be able to assemble the weldments, perform a wide variety of welding operations and do final assembly. To be a good fabricator, an employee has to be good at managing his project. An intermediate fabricator may be managing himself on a project such as a small conveyor. A journeyman fabricator might be job leader on a tote dumper or large conveyor. Fryers and blanchers are supervised by a leadman or senior leadman. A senior leadman may be responsible for fifteen or twenty fabricators, on two shifts, manufacturing a half a million-dollar piece of food processing equipment. The common denominator is that the people responsible for manufacturing food-processing equipment must have and use good management skills. The welding process is often highly technical. There is welding of dissimilar materials, such as stellite and stainless steel for blancher belt side chains or welding stainless steel to mild steel. People welding have to know when to preheat metal being welded and when a controlled cool down is required. They also have to know how to Welder at Work straighten weldments after welding and most important, the use of welding procedures that minimize the build up of heat METAL FINISHING induced stress. Quality fabrication is the backbone of GEM Equipment's equipment At GEM Equipment, metal finishing consists of grinding, polishing and passivation. The fabricators perform grinding and polishing. The amount of grinding and polishing will be determined by the use of the equipment. Dairy and meat usually requires all welds on product contact surfaces to be ground and polished to the same finish as the parent metal. This level of finish would cost too much to be used for raw product handling equipment for potato and vegetable operations. Passivation consists of a nitric acid wash down of stainless steel weldments to assure that any mild steel contamination is eliminated. If mild steel is allowed to remain embedded in the stainless steel, the mild Passivating Equipment steel will oxidize and show signs of rusting. Page 13 QUALITY ASSURANCE For a company that desires repeat business, quality is not just critical, it is mandatory. GEM's top management is dedicated to producing the highest quality equipment feasible for each specific application. Needless to say, fit and finish requirements are high for satisfying meat and dairy requirements than for the raw product end of a vegetable plant. The primary objective is to maintain the required quality level at each step of the design, manufacturing and installation process. This means that every employee is responsible for quality. Quality must meet customer needs and GEM Equipment's standards. Pallet Washer for Beverage Plant SHIPPING A company that manufactures oversize equipment puts a big load on its shipping department and on trucking companies. It is not unusual to ship overwidth loads across country. Shipping includes the responsibility for scheduling trucks, packing, loading and documenting the contents of each load. INSTALLATION Fryer hits the road Fryer installed in customer’s plant GEM Equipment's role in installation is dependent on geography. For installations in the United States, GEM is capable of setting the equipment, support structure, catwalks and process piping, utilizing crews from the company's Oregon plants. Due to Canadian immigration law, an installation project in Canada requires the use of a crew that is fifty percent Canadian. GEM obtains the Canadian workers from local subcontractors. A large installation project will be managed by a senior leadman. Because they are permanent employees and have built equipment similar to that being installed, these men are well qualified and take personal responsibility for the customer's well being. When required, GEM will furnish a leadman or senior leadman to provide technical guidance to crews installing equipment outside North America. Page 14 STARTUP SUPPORT equipment OF OREGON inc. If GEM performs the installation, startup support is normally part of the installation service. Part of the reason this is included when GEM installs, is that many of the problems experienced at startup occurred as a result of the hustle and bustle that too often is the norm during the final days of installation. This also reduces delay for the customer and cost for this company in addressing any warranty issues. If GEM does not install or special qualifications are required, these services are available as an extra cost option. . AFTER SALES SERVICE AND WARRANTY GEM Equipment feels a strong responsibility to professionally address any problems in the field with a sense of urgency. If a problem that carries the risk of emergency shutdown falls in a gray area between GEM's and the customer's responsibility, this company's policy is to deploy resources and get the problem addressed. The time to decide the degree of financial responsibility for each party is after the problem is fixed and the plant is operating without risk of eminent disaster. While GEM's warranty is approximately one year after shipment, extenuating circumstances can result in an extension of the warranty for specific problems. The primary purpose of after sales service is to minimize any negative event caused by problems in the field. Peach Halves Hazel Nuts PROJECT REVIEW MEETING It is helpful for both GEM and the customer to have a final meeting to review how well the project results are meeting the project objectives and to resolve any loose ends. If the project has been well managed by both parties, this meeting should be relatively upbeat and provide for a closer working relationship in the future. For GEM, the primary objective of this meeting is to assure that any issues that would reduce GEM's chances of future business are addressed. This is also an opportunity for this company to gather information about potential improvements that would make the equipment more effective for the customer. No equipment manufacturer can know as much about the operation of the equipment as do personnel who work with it every day Page 15 A Touch of GEM Equipment EIGHT FOOT WIDE BATTER APPLICATOR VORTEX TANKS MIXED VEGETABLE LINE All of GEM's eight-foot wide batter applicators, now in service, are applying batter french fry potatoes. GEM furnishes complete batter fry lines, which consist of the applicator, blowoff conveyor, fryer feed conveyor, two-stage fryer and batter mixing system. GEM is a leader in high capacity batter and frying equipment. A large capacity breader is available Hydropumps attach to the flanges at the right. Hydropump systems convey by suspending product in water. These systems normally consist of a vortex tank, a hydropump, piping, a dewatering device and a scavenger reel. The water is recirculated. If the discharge is not higher than the vortex tank, a return pump with tank will have to be included with the system. Hydropump systems are used to convey a large variety of food products. Computational Fluid Dynamics is used in Vortex Tank Design. Each mixed vegetable station consists of a tote dumper, loose freeze breaker, with hopper and a proportional feeder, with hopper. In addition, the system includes hydraulic pump,support structure, catwalk and vibrating collection conveyor. Any one of these components can be purchased as a separate item. Mixed vegetable lines can be furnished with any number of stations. Page 16 Mixing & Cleaning PADDLE MIXER DUAL RIBBON BLENDER BARREL WASHERS Paddle mixers are normally used for mixing a continuous flow of product. They are effective for difficult mixing applications. Screw conveyor troughs are sometimes used for the mix tank. In addition to paddle mixers, GEM Equipment's product line includes a full line of screw conveyors and a wide variety of ribbon blenders. The dual ribbon blender above meets the USDA requirements for meat and poultry. This paddle blender processes 6000 pounds of meat per hour. The grate includes electrical safety switches. This unit is used to wash the peeling loosened by the steam peeler off of potatoes. The potatoes are agitated as they travel through the drum. Water sprays flush the peeling off and out of the washer. The water is recirculated and a scavenger reel removes the skins from the water. The complete washing system, available from GEM, consists of the washer, one hundred fifty-psi pump, scavenger reel and recirculation piping. Page 17 Equipment Designed by Flodin ROCK TRAPS FOR PRODUCTS THAT SINK ROCK TRAPS FOR PRODUCTS THAT FLOAT For products that sink, the Flodin Rock Trap does more that just remove rocks. Rock traps used for potatoes and other root crops that sink, has an upper conveyor that removes vines, sticks and other floating debris. The lower conveyor removes rocks and a flume conveys the product out the side of the rock trap. Water flow rate and infeed elevation of the upper conveyor are adjustable to provide fine tuning for specific applications. More than 80 Flodin Rock Traps have been manufactured and put into operation. The Flodin Rock Traps manufactured by Gem Equipment for product that float do not include the upper conveyor. The upper conveyor would convey good product out with the floating debris. Page 18 Fryers FRYER WITH FRYER FEED CONVEYOR CO-PRODUCT FRYER STAINLESS STEEL APPETIZER FRYER GEM Equipment has been manufacturing frying systems for the French Fry Potato industry for over twenty years. Fryers are externally heated, have high rate of oil flow and the oil is continuously filtered by full flow filtration equipment. Filtration rate is high. Total system oil volume is filtered at least once every minute. The high rate of oil flow, coupled with scientific kettle design, assures uniform color and surface texture across the width of the fryer Page 19 GEM Services Profiling GEM Equipment of Oregon, Inc. Engineering Flow Modeling Stress Analysis Laser Cutting Manufacturing Installation In business since 1969 equipment OF OREGON inc. P.O. Box 359/ 2150 Progress Way Woodburn, OR 97071 Telephone 503-982-9902 Fax: 503-981-6316 Email: gem@gemequipment.com Website: gemequipment.com