NZ Manufacturer May 2012 May 2012
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Manufacturing Technology
Robots and machine tools together more efficient.
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www.solidtec.co.nz
Report: Indonesia
Canterbury
$1 trillion economy and growing fast.
Strength in the quality of product.
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Replika’s boss calls on government Companies slash maintenance for to back manufacturers profit, says veteran By Kevin Kevany
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Colin Plowman with the Trumpf fiber laser.
e’s done the lot. Worked in the family laundry business, successfully sold machinery to the fabrication trade – where he ‘fell in love’ with German Trumpf machinery – and today runs one of New Zealand’s top stainless steel (and other materials) fabricator, Replika. And Colin Plowman wants the government of the day to ‘get over its milk, timber and tourism obsession’ and take a leaf out of what our postWW11 government did, and the German and other governments do to this day – get behind their quality manufacturers. That, he reckons, will boost sustainable employment, create careers for the young, and most importantly create a pride in New Zealand craftsmanship which would translate into a massive boost to our economy.
“While there isn’t a Minister of Industry to coordinate our national efforts, why don’t they get the ball rolling by calling together manufacturing groups, put them in a room and think-tank where we are at right now. Define what we could do better than anyone else; where we need to go to compete at the top end of that quality scale – which many of us do already – and what is needed over a period to prosper in that competitive niche,” Plowman says. He vividly recalls the way New Zealand’s post-War manufacturing efforts where supported, promoted and guided into being a formidable force, ‘an engineering and manufacturing society’ before it got distracted and drifted into manufacturing and assembling motor cars, for example. Continues page 14
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ajor Kiwi companies are quietly opting for ‘zero maintenance’ – and an industry veteran, longconcerned at static growth in our manufacturing industry, Peter Rocque, boss of Acton Tools and Engineering, calls it ‘the worst example of short-term madness to get through a slowdown I’ve seen in 40 years’. He acknowledges that he has had to be ‘pragmatic’ at certain times in his own career, but says he cannot believe that a number of blue chips, he names, as deliberately cutting out maintenance are doing it to survive. “Sadly, it would seem to be managers, with short-term profit motives – possibly protecting their own bonuses – slashing budgets and leaving engineers shaking their heads at this foolishness. But, hey, what do you do if your boss is determined not to listen to the consequences? Jobs are hard to come by right now,” he says. Rocque compares it to hiding the family silver and jewels in a storm-drain, as the storm peaks – and hoping they’ll still be there afterwards; but in what condition? He has been turning his mind to solutions he can offer off his own bat for a couple of years now, as he says ‘because we are going to have to do it: government won’t and it doesn’t have the resources anyway’. An immigrant himself, he believes his new ‘hairdresser’s chair’ idea will attract skilled tradesmen from around the world, looking for an opportunity to bring their ideas and talents to a new country, develop them in a low-risk environment – his
Petr Rocque
Manufacturing Hive, in East Tamaki – and replicate his own success, dozens of times over. (Typically, a salon owner provides the chair and the hairdresser pays a rental and a share of the takings.) Rocque’s Acton works, just off the Highbrook main drag, is one of the most comprehensively kitted-out in the country. It is a veritable treasure cave of everything you could need to produce anything from an aluminium comb to a sophisticated cog for a rocket engine – which it’s done over time. And he is prepared to share it with selected candidates which he and a colleague identify to come in to the ‘hive’…..and, well, make ‘honey and money’, without a commitment to purchase, long rentals and massive deposits.
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NZ Manufacturer May 2012
JOIN WITH ‌ TELL US YOUR STORY www.nzmanufacturer.co.nz
www.nzmanufacturer.co.nz words@xtra.co.nz
NZ Manufacturer May 2012
CONTENTS Advisors
www.nzmanufacturer.co.nz
DEPARTMENTS
10 15 16 17 18 19 20 22 23 25 26 29 30
BUSINESS NEWS
Going green paying off big time.
EMEX 2012
Is the CEO of Gallagher Group Ltd. He is also a Fellow of NZ Institute of Management.
Reflections from exhibitors.
BUSINESS NEWS
• Literacy gap affecting productivity. • Online trading a risk in Australia. • True to training.
Sir William Gallagher
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Page 5– BUSINESS NEWS – NASA astronaut to attend science festival.
MANUFACTURING TECHNOLOGY Plastic flow analysis = quality product design.
Stephen Drain
AUCKLAND MANUFACTURERS Auckland exporters honoured.
DEVELOPMENTS
Innovative company revolutionises viticulture practices.
REPORT
Trade mission to Indonesia.
BUSINESS NEWS
Exporting to the Philippines.
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Stephen Drain is a Director at PwC specialising in Leadership Development and Forensics
Page 14 – AUCKLAND MANUFACTURERS – Replika boss calls on government to back manufacturers.
Catherine Beard
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Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, New Zealand’s largest business advocacy group, representing businesses of all sizes.
OPPORTUNITY HAMILTON
• Alliances bring engineering careers to life. • Waikato graduates land top jobs.
PRODUCT NEWS
• ‘The Probe’. • Particle counter delivers quality measurements.
Bruce Goldsworthy
DEVELOPMENTS
• Boost for glow-in-the-dark products. • Design provides new perspective.
DEVELOPMENTS
Winning formula for export manufacturing.
Page 24 – DEVELOPMENTS – Plastic plant to increase productivity.
CANTERBURY
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An advocate for NZ manufacturing for 40 years, he was Chief Executive of the Auckland Manufacturers Association for seven years He has been Manager of EMA’s Advocacy and Manufacturing Services, and lately manager for Export New Zealand in the north.
“Our strength is the quality of product.”
ANALYSIS
Machine vision becomes three-dimensional.
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WORKSHOP TOOLS Contactor selection easier.
BUSINESS NEWS
Do optimism figures herald true or false dawn?
Is NZTE’s Director Specialised Manufacturing. He is based in Auckland.
Page 28 – WORKSHOP TOOLS – A first for Wairarapa manufacturer.
Lewis Woodward
Page 31 – REAR VIEW – The end of cheap China.
WWW.FOODTECHPACKTECH.CO.NZ
Adam Bennett
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Is managing director of Connection Technologies Ltd, Wellington and is passionate about industry supporting NZ based companies, which in turn builds local expertise and knowledge, and provides education and employment for future generations.
vanessa@xpo.co.nz www.nzmanufacturer.co.nz
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NZ Manufacturer May 2012
EDITORIAL
I had to make my own living and my own opportunity! But I made it! Don’t sit down and wait for the opportunities to come. Get up and make them!
Publisher
Media Hawke’s Bay Ltd, 1/121 Russell Street North, Hastings, New Zealand 4122.
MANAGING Editor
Doug Green T: +64 6 870 9029 E: words@xtra.co.nz
CONTRIBUTORS
Jurgen Brand, Kevin Kevany, David BurkeKennedy, Catherine Beard
ADVERTISING
Max Farndale T: + 64 6 870 4506 E: max@nzmanufacturer.co.nz
Design & PRODUCTION
Karl Grant T: + 64 6 870 9028 E: daylightmarketing@xtra.co.nz
WEB MASTER
Dan Browne E: dan@membrana.co.nz
PUBLISHING SERVICES
On-Line Publisher Media Hawke’s Bay Ltd
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Media Hawke’s Bay Ltd T: + 64 6 870 4506 E: mediahb@xtra.co.nz 11 issues per year. New Zealand $55. Australia and Pacific $95. Rest of the World $132.
MEDIA HAWKES BAY LTD
T: +64 6 870 4506 F: +64 6 878 8150 E: mediahb@xtra.co.nz 1/121 Russell Street North, Hastings PO Box 1109, Hastings, NZ Publishers of: NZ Manufacturer, The Mirror, Asia Manufacturing News. Plus contracted publishing services.
– C.J. Walker
Back our manufacturers
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ut of the financial fiasco in Europe, one country still firmly focuses on manufacturing. And that country is Germany where people place a lot of pride in what they make and are happy to be known as engineers.
I know a lot of people like that in New Zealand who are making some fantastic products, have the same passion for their profession and yet struggle to gain recognition either through finding markets or support from agencies who don’t grasp the big picture. Colin Plowman sees this and lives and breathes manufacturing. Currently, he is calling on government to back the country’s manufacturers. A few years ago I asked the question “If New Zealand can have a Minister of Horse Racing (Winston Peters) why can’t we have a Minister of Manufacturing?” Colin has gone one step further suggesting that a Minister of Industry is in order. Failing that why doesn’t government get the ball rolling by calling together manufacturing groups, put them in a room and think-tank where we are at right now? “Define what we could do better than anyone else, where we need to go to compete at the top end of the quality scale and determine what is needed to prosper in the competitive niche,” says Colin. Who else wants to put their hand up and make some suggestions which can be acted upon? Who has a company at the moment which is struggling and is seeking a way to make a breakthrough into overseas markets? On the other hand, who thinks the country is doing so well that we’re all in good shape and it’s steady as she goes? Who thinks the Budget has solved their problems and that government has invested in jobs and development? Either way, I’d like to hear from you.
Doug Green
ISSN 1179-4992
Vol. 3 No. 4 May 2012 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.
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www.nzmanufacturer.co.nz/videos PUBLISHER & MAGAZINE DEVELOPMENT– Max Farndale max@nzmanufacturer.co.nz
BUSINESS NEWS
NZ Manufacturer May 2012
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NASA astronaut to attend science festival
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ASA astronaut Stephanie D. Wilson, a veteran of three space flights who has logged more than 42 days in space, will be making her next touchdown at this year’s eighth New Zealand International Science Festival taking place in Dunedin, from 30 June to 8 July 2012.
Wilson was selected by NASA in April 1996 and, after completing two years of training and evaluation, qualified for her first flight assignment as a mission specialist. Festival director Chris Green says that having a NASA astronaut attend the 2012 festival is a ‘dream come true’: “At some stage of your life, you imagine what it would be like to be a NASA astronaut and
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travel into space. Festival attendees will be able to hear first hand from Stephanie what being an astronaut is all about – from the rigorous training it takes to become an astronaut to what they eat when they are on a space mission. We are really excited to secure her attendance for 2012.” In keeping with the festival theme of ‘what makes us tick?’, Stephanie Wilson will be involved in workshops for kids, a family fun quiz night, presentations in Wall Street Mall on the fourth of July (United States Independence Day) and a evening presentation open to the public. Originally from Boston, Massachusetts, Wilson completed her education at Harvard University, graduating with a Bachelor of Science degree in engineering science. She went on to gain a Master of Science in aerospace engineering from the University of Texas in 1992. Wilson was initially assigned technical duties in NASA’s Astronaut Office Space Station Operations Branch working with space station payload displays and procedures. She then served in the Astronaut Office CAPCOM Branch, working in mission control as a prime communicator with on-orbit crews. Following her work in mission control, Wilson was assigned technical duties in the Astronaut Office Shuttle Operations Branch involving the main engines, external tanks and solid rocket boosters on flights for the space shuttle programme. She went on to become an astronaut herself, forming part of a team on three return space flights, STS-121 in 2006, STS-120 in 2007, and STS-131 in 2010. Details regarding festival ticket sales and other visiting experts are yet to be announced.
Going green paying off big time
rganisations wanting to improve their environmental credentials and their bottom line are lining up for the Eco Smart Business programme. That’s largely due to the big benefits reported by last year’s participants. One company cut its vehicle operating costs by over $100,000 and waste management costs by 50% annually. Another reduced its waste costs by 39% while a fourth lowered its energy costs by 30% and another cut theirs by 40%. To recognise them, the Eco Smart Business programme presented the following four Trailblazer awards: • Energy Trailblazer Award– The Pink Bin Company for saving 40% on energy use; • Waste Trailblazer Award – Floorcraft (NZ) Ltd for a 39% reduction in waste cost by donating waste carpet for weed matting; • Transport Trailblazer Award – Eco Insulation for saving $100,000 per annum through focused route management and a fuel efficient fleet replacement programme. Also the new fleet is generating three or four sales leads a week; • Eco Warranty Trailblazer – Greenscene Ltd for excellent implementation of the Environmental Management System and understanding, awareness and contribution by all staff.
The Eco Smart Business programme consists of five, half-day workshops where participants use an online system to measure their environmental footprint including energy use and waste management. On an online system they then set up their own Environmental Management Plan which can lead to Eco Warranty certification and ultimately to meeting the ISO 14001 international environmental standard. EMA’s aims are to help businesses save money and become more attractive to consumers and other parties in the supply chain, who are all demanding increasing proof of environmental credentials. Other benefits of the programme, include: • Providing the planning structure to continue to strive towards enhancing and protecting living environments. • The ease and speed of reaching Eco Warranty Certification and subsequently ISO14001. • Providing the tools to address relevant environmental issues within the business. • Raised awareness of companies’ environmental impact and implementing measures to minimise it. The first 50 businesses signing up also receive a 50% subsidy thanks to the support of the Energy Efficiency and Conservation Authority (EECA) and Auckland Council.
www.staplesrodway.com
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BUSINESS NEWS N
Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.
– Jack Welch
Reflections o
Filtercorp will be back
ational Sales Manager Graham Pike says the show was a great way to get the name out there. “However many previous attendees were conspicuous by their absence,” Pike says, “and on checking we discovered a lot of people never even knew the show was on. “On the other hand we had more ‘genuine’ enquiries” he says. “We definitely did the business.” The Filtercorp stand was manned by Pike and Waikato, Bay of Plenty, Hawke’s Bay representative Steve Barton. Both believed the show’s hours should be rethought. “Opening at 9am was too early and 6pm closing was too late,” says Pike. “Attendances seemed to die in the afternoon.” Both suggested 10am-5pm would have been more appropriate, maybe with a late night after the traffic has died. Barton and Pike were very impressed that some out of town companies brought groups of apprentices to the show. “There was even a group of
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Impressed by great turnout
ational Instruments was delighted to again exhibit at EMEX 2012.
Steve Barton
young Air Force personnel,” Pike says. “For them and apprentices, the show would have been a real eye opener to what’s happening in the outside world.” Barton observed that unlike previous years, more visitors were there to actually purchase – the show allowing them to compare before committing – a bit like engineering ‘Field Days.’ And many visitors to stands were not buyers but looking for work themselves. Minor criticisms aside, both agree that overall the show was worth the effort. Filtercorp will be back next time.
They have been participating at the event for many years now, and continue to be impressed with the great turn out, as well as the diversity of industries and applications represented by visitors to the show. With no one industry representing more than 10% of their business, events such as EMEX 2012 provide National Instruments with an opportunity to demonstrate a wide variety of their latest products and platforms for various applications; from automated test and measurement, to embedded monitoring and industrial control. NI appreciated the opportunity to discuss application challenges and trends with local engineers, scientists, technicians and educators from across New Zealand at the event.
Solidtec happy
aecsystems.co.nz aecmarketing@aecsystems.com.au
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“ MEX 2012 seems to have been great for us thus far,” says Joel Brown, marketing coordinator for Solidtec. “We got around 140 visitors to the stand with at least 100 new leads not in our database. We’re generally very happy with the show and hope that within the short term future it will have provided a profitable outcome. “
NZ Manufacturer May 2012
BUSINESS NEWS
The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time. – Henry Ford
on EMEX 2012 E
Worthwhile for Baskiville
xhibiting at EMEX gave Baskerville the ability to practically demonstrate new technology products available from overseas. Baskiville make it a priority to attend trade shows in the USA and Germany each year so as to bring the latest information and equipment back to NZ. The company was pleased with the amount of interest in their stand, which had doubled in size from when they last displayed in 2010. Not only was it great to catch up with existing customers but also the large number of new customers searching for products, who did not know about us. Ian Fowler, managing director of Baskiville says it can be a good thing and a bad thing that people in your industry don’t know about you. “It gives us an opportunity to further grow our business, also reflecting the importance of representing your company at EMEX.
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‘We had one customer who had been searching for our products and services and was considering working with an Australian company, before he attended the show.” Looking forward, Baskiville can see a lot of positive markers in the manufacturing industry and they will be back again for EMEX 2014.”From the feedback we have had this year, it is important for industry to get together like this, as we need each other to make it a successful event. Well done to the organising team, without them we wouldn’t have had half the show.”
EMEX 2012 in brief • 66% of visitors were satisfied or very satisfied with their EMEX
experience. 61% say EMEX is a “must attend” event 50% of visitors think their Industry is getting smaller. 50% also think that their business is growing. 55% think the NZ economy is going to improve over the next 12 months. • Winner of the Ford Transit valued at $52k was Denise Moughan of Auckland. • Winner of the EMEX ShowGizmo app Fishing Trip for six people was Paul Janceys of Jaychem.
• • • •
Business done, contacts made
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By Doug Green
MEX 2012 is done and dusted. A successful trade fair which brought buyers together with exhibitors resulting in business being done and enquiries to be followed up over the coming weeks and months. EMEX always seems to come around fast –it’s held every two
years – and it is fascinating to see the enhancements in technology on display. The machinery on the DMG stand, the innovations at the German stand and at Leabourn and Rose and Spinner...to name but a few of the companies who drew positive response from the many visitors.
Many leads and high profile visitors
xhibitors under the “Made in Germany” banner were satisfied with the results of EMEX 2012 with high profile visitors and up to 80 business leads. “The first day is always crucial”, says Matt Hura, sales specialist for Karcher Ltd. The cleaning solution provider showcased a range of cleaning products and was a partner at the joint stand, organised by the New Zealand German Business Association (NZGBA). It may not have started with a bang for Karcher, but the visitors continuously came.
Ville Mikkolainen, field application engineer, IFM Efector
Ville Mikkolainen, Field Application Engineer of IFM Efector, another company under the “Made in Germany” banner, was very happy with the start of the trade show. “We received nearly 40 leads during the first hours of the trade show”, he says. Tony Catterson, Sales Manager at Pilz Ltd NZ agrees: “EMEX 2012 started really well, even on the first day there was a constant flow of visitors.”
The other four companies, Hydac, Janitza, Direct Control and Sick Pty Ltd., expressed similar opinions. Michael Welzel from Direct Control, which represented Janitza, was satisfied with the show’s results. “Everyone we invited to our stand showed up”, he said. Janitza electronics GmbH, a leading global manufacturer of digital integrated measuring equipment for energy distribution, energy optimisation systems and power factor correction systems, exhibited for the first time at EMEX 2012.
Darren Salt, North Island manager, Wuerth New Zealand Ltd
Darren Salt, North Island Manager at Wuerth New Zealand Ltd. believes that it was the second day of the trade show that was the busiest for his company. Wuerth received approximately 15 leads with two or three “really promising ones”. “The general mood at the trade show was positive and optimistic”, says EMEX Marketing Manager Irene Smith, whereas in 2010 the
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attitude of the visitors was “reserved and cautious”. “This year we saw a lot of ‘sold’ signs on machines at the show”, she adds. Big machines and demonstrations of how they work always attract the crowds. “The more action you have on the stand the better”, says IFM’s Mikkolainen. The manufacturer of high quality sensors for industrial automation demonstrated how their new AS-Interface works. “Safety at Work” is the extension of the AS-interface by safety-related components. The sophisticated AS-i technology and the extended diagnostic possibilities provide good reliability, says IFM. “With a total of 80 leads, it was the best EMEX so far for us”, says Mikkolainen. He and his company plan to attend the next EMEX. 40 to 50 leads to follow up was the result for Pilz NZ Ltd. a subsidiary of German-based Pilz GmbH and Co., Europe’s largest and most respected manufacturer of automation safety equipment. “The professionalism of the visitors was very good”, says Tony Catterson. To exhibit under the “Made in Germany” banner also seemed to be the right thing for Pilz, because “it gave us more identity.” The label itself is perceived “as one of very high quality”. Catterson will give it another go in two years time at the next EMEX. “It was a pretty good show”, was the opinion of representatives of Sick Pty Ltd., a leading manufacturer
By Doris Evans
Tony Patterson, sales manager, Pilz Ltd NZ
of sensors, safety systems and automatic identification products for factory, logistic and process automation applications. “We both could catch up with existing customers and also managed to get in contact with new customers”, says Sick’s New Zealand Manager Matthew Jones. “We will definitely participate at the next EMEX”, he adds. Darren Salt, however, is not sure whether Wuerth will take part in the trade show again. The next big event in New Zealand where the supplier of fixing and assembly products will be present is the BuildNZ show in 2013. “I guess it’s good to attend a trade show when you have a big new machine to showcase”, he says. www.nzmanufacturer.co.nz
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NZ Manufacturer May 2012
BUSINESS NEWS
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Credibility matters regardless of what type of business you have. Name association can help or hurt your business. Choose wisely.
– Rebekah J. Fishel
Literacy gaps affecting business productivity
iteracy gaps amongst managers and supervisors are costing Kiwi businesses dearly and more needs to be done to meet this group’s needs, according to leading adult literacy and human resources experts. New Zealand research suggests that many managers and supervisors have literacy skill shortfalls that restrict their ability to be effective leaders and communicators. Yet this group experiences high literacy and numeracy demands in the course of their work. Around half of New Zealand’s work force has gaps that can make it difficult to complete every day work tasks. In the case of managers and supervisors, this could involve tasks such as writing standard operating procedures, or shift handover notes; reading spreadsheets and graphs, or preparing timetables or schedules. Human Resources Institute of NZ (HRINZ) Research and Education Manager, Brenda Tweedy, says she is regularly dismayed at the poor literacy skills she sees at all levels of management – even among chief executives. “Business productivity and quality output relies upon this group having strong literacy, numeracy, leadership and communication skills but the reality is that many struggle to do even the basics,” she says. “It’s a hidden issue, whereby managers with literacy and
numeracy gaps are shielded by others within the organisation, resulting in constraints to the business’ ability to improve productivity.” Katherine Percy - Chief Executive of adult literacy, numeracy and communication support provider, Workbase – agrees, saying that supervisors and managers are often hired or promoted on their
Around half of New Zealand’s work force has gaps that can make it difficult to complete every day work tasks.
technical ability and it is assumed that they have all the language, communication and leadership skills that they need. “There are many benefits to be gained from assisting managers and supervisors to develop higher levels of literacy and numeracy because they are a key communication link between the organisation and its staff.” Ms Percy adds that although schools and tertiary institutions can be doing a better job in equipping young people with good literacy and numeracy skills, employers also have a role to play by providing training. Many are unaware that there can be subsidy support available to them via The Tertiary Education Commission’s Workplace Literacy
Fund. Ms Tweedy encourages businesses to “stop putting their heads in the sand” on this issue because manager and supervisor literacy gaps are costing their business dearly. Food manufacturer Hansells Food Group quickly saw impressive results after putting a group of supervisors through a course to improve their language, leadership and problem solving skills. Site Operations Manager Rory Garvey says the company recognised that it would make better progress introducing a Lean manufacturing process if it helped frontline managers to improve their skills. Lean manufacturing aims to optimise production efficiencies while maintaining quality. “Providing literacy and communication training to this group has helped Hansells make overall improvements in a whole lot of ways,” he says. “Workplace accidents have decreased, gross margins have increased, product quality has improved and employees are now much more strongly motivated in their work.” Mr. Garvey notes that frontline managers are now more confident to speak up and draw senior management’s attention to any production or quality issues, which ensures production line and other problems can be resolved quickly.
NZ companies trading online risk being sued in Australia
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ompanies which accept online orders from Australia are being warned to tread carefully because they could be sued for infringing somebody else’s trademark. Intellectual property expert, Theodore Doucas of Zone IP, an intellectual property consultancy in Wellington (with an office in Sydney), says that in his experience – as a consultant and a former Assistant Commissioner of Trade Marks – a quarter of New Zealand companies that have filed their trademarks in Australia have had different objections raised by the Australian Trade Mark Registry (IP Australia). “That means up to 25 per cent of New Zealand companies which have their trademarks registered here may have their application with
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IP Australia fail because the mark is already taken or IP Australia do not consider it distinctive – it’s a huge and expensive problem for New Zealand companies who regard crossing the ditch as the next logical step in their expansion. “Don’t expect any favours from IP Australia. They have different case law and examination practice which they must apply.” He said it is important to remember that even a New Zealand company that is based here, but sells product in Australia over the Internet, is deemed to be trading in Australia and is at risk of falling foul of trademark laws. “There’s been talk about a single application, but it’s just that - talk. The offices don’t seem to be working together. We have had a lot of success registering trademarks in
Australia, but most companies don’t think of trademarks in Australia when they’re just starting out in New Zealand. “In our experience, IP Australia is far more conservative than the New Zealand registry.” Mr Doucas said he knows of New Zealand companies that have been forced to rebrand in Australia – an expensive process. “One thing that start up companies who have aspirations in Australia should do, at the beginning, is undertake an availability search of their proposed mark in both New Zealand and Australia at the same time. “You would be surprised by what marks may exist in Australia that don’t exist here – there’s more people, which means more ideas and greater variety. The official cost to register a trademark in Australia is three times more expensive than New Zealand, so it pays to get it right the first time,” he said.
Theodore Doucas of Zone IP.
NZ Manufacturer May 2012
Your most unhappy customers are your greatest source of learning. – Bill Gates
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True to training
t’s not easy for New Zealand manufacturers to compete against the lower costs of international firms. But where we can’t compete financially, we can compete by building a highly productive workforce with a strong knowledge of lean principles. And building a productive workforce was what Tru-Test Group, the world’s leading manufacturer of livestock scales and milk metering equipment, set out to do. In 2007, Tru-Test embarked on their lean journey through a continuous improvement programme known as TRACC. Then in 2010, Competenz, the Manufacturing Industry Training Organisation (ITO), joined the party. “We realised that what Competenz could bring was a nationally recognised qualification that aligned with TRACC and reflected the effort of every employee,” says Jeff Tuffnell, TruTest training provider.
So to recognise this effort, TruTest held a graduation ceremony to celebrate the success of over 100 employees who achieved the National Certificate in Competitive Manufacturing, Level 2. “Some workers have never had a formal education – yet they practise lean manufacturing every single day,” says Fred Hanson, Tru-Test Manufacturing Manager. “They deserve to be recognised with a qualification.” When Tru-Test first started training, it was quickly discovered that a challenge employees were facing wasn’t the how, but the what. “They weren’t familiar with the terminology even though they know exactly what it entails,” says Nick Fitzgerald, Polymers Accessories Team Leader. “So we took them through the factory floor and showed them how each term was actually part of their daily job – now they have a qualification to be proud of.” But investing in their people has
Single global brand drives name change
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allagher Group’s decision to deliver a single global identity has resulted in a company name change for prominent local business, PEC Fuel Pumps. One of New Zealand’s most successful privately owned companies, Gallagher is a global leader in the innovation and marketing of technology solutions for Animal Management, Security and Fuel systems. But increasing opportunities in the global security market with major technology developments are driving the repositioning of its future business strategy and brand identity. Now, the Hamilton based company with over 1000 staff worldwide has aligned all business units and market products under one name, Gallagher, including PEC Fuels Pumps who will be known as Gallagher Fuel Systems. Managing Director, Richard Coxon, says for market consistency Gallagher had to move away from the many brands in its stable. “We were divisionally structured with Security Management Systems,
Animal Management and PEC Fuel Pumps and each division marketed various product brands. “It encouraged individuality between divisions and sub-cultures within our organisation. Most importantly our customers were confused about who we are and what we stand for.” While the company formerly known as PEC Fuel Pumps is officially registered as Gallagher Fuel Systems it will market itself as Gallagher in line with other business units of the privately owned business. “Gallagher is positioning itself as a global technology brand offering solutions in animal management, integrated access and perimeter security and fuel systems. We’re also expanding our capabilities within manufacturing including electronics, plastics processing and tool and die making which is where we see opportunities for the local facility.” He says introducing a single brand enables each business unit to enhance the other’s message instead of diluting it. “This meets a key business objective to develop a unified global technology company which can offer a range of competencies to the industries it operates in. This is a natural progression of an existing partnership and will create innovative opportunities for our facility especially with the expansion of the contract manufacturing’s capabilities and profile.”
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BUSINESS NEWS
not just meant a rise in staff morale, but the teams increased skills have filtered down to mean increased productivity – helping Tru-Test in their goal to become New Zealand’s leading manufacturer. “An improved team culture has seen our workers actively looking for waste and thinking of ways to eliminate it – they’re working towards a common goal now,” says Rosemary Song, Mover’s TRACC work group Team Leader. “The results have been amazing, our electronic circuit changeover used to take two hours, now it’s only ten minutes!” Products that used to have two
days of manufacturing lead time now only take two hours, and the factory floor has reduced by half, while maintaining the same output efficiency. And Tru-Test isn’t stopping here. Already, plans are underway for further training in core competitive manufacturing skills and more health and safety now that all staff have passed the Level 2 threshold. “Tru-Test has a true passion for New Zealand manufacturing,” says Fred, “and we’ve proven that we can compete globally in more than just niche products – commodity products are not a problem when we have well trained staff.”
EMAIL: scott.ellery@gallagher.co
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NZ Manufacturer May 2012
MANUFACTURING TECHNOLOGY
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You will either step forward into growth or you will step back into safety. – Abraham Maslow
Plastic flow analysis = Robots and machine tools quality product design together more efficient
f we are serious about advancing our manufacturing expertise in this country, we must strive for quality. Cheap and nasty may raise a quick buck, but quality products and manufacturing processes will result in sought after, long lasting supplier customer relationships. “Can I be confident that this product design will result in a quality moulding?” This is the question that every product designer asks at some point in the development of a new plastic part. In the past, this question could only be answered conclusively at the very end of the design cycle -when tooling has been made, (often at great expense), and the “first off” tool samples are moulded. This is often the time at which unforeseen issues arise in the product design. Some of these issues can be attributed to moulding conditions and can be tuned out with the adjustment of moulding parameters. However, more serious problems such as incorrect gate positions, weld lines, sinks & voids, distortion, uneven shrinkage and hidden stresses are more difficult to resolve. In the worst cases, the cavity is unable to be filled completely resulting in a short shot. To resolve these issues usually requires costly tooling modifications which delay product release and incur unwanted extra expense. Using the power of plastic flow analysis during the product design process will help to avoid the above mentioned pitfalls. As highlighted in a previous article, (NZ Manufacturer April 2012), performing a filling analysis on the design at the earliest stage can highlight the potential problem areas in the design. This analysis tool is just as important in the design process as the 3D prototyping that is considered an essential part of the development of
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odern machine tools run at such a speed during machining that the auxiliary times, e.g., loading and unloading, are becoming increasingly important for total performance. Robots are providing the needed acceleration here. Various robot manufacturers are presenting such solutions and can record substantial growth in this segment. In addition to speeding up work, the link between robot systems and machine tools can also enable completely automatic operation without the involvement of people. Two concepts are above all being pursued for automating tool machines: on one hand, the integration of a robot into the machine tool, and on the other hand the complete automation module including robot on the machine.
Flow analysis to determine the fill pattern
a new product today. ACS Design specialise in the design of products and tooling for the injection moulding industry. As part of this design process they use CAE, (Computer Aided Engineering) software to “virtually mould” plastic parts. The software, (VISI Flow from Vero Software), allows product designers to gain valuable feedback as to how mouldable their designs will be. ACS Design strongly advise anyone developing a new injection moulded part to take advantage of their Flow Analysis services in order to help achieve high quality moulded parts. nextSTEP Email: Andrew Simpson, ACS Design, acsdesign@maxnet.co.nz
Email: acsdesign@maxnet.co.nz Ph/fax: +64 7 377 0675 www.nzmanufacturer.co.nz
Robust robots work in machine tools
New robot concepts are available for integration of robots in machine tools that can cope with the adverse ambient operating conditions of shavings, grinding dust, coolants and other corrosive media. Teams of robots and machine vision systems also contribute to the efficiency of automation “behind” machine tools. For example, they handle tasks of quality control, but also take care of further processing and finishing of workpieces. CNC machining is also more widespread, in which inexpensive robot solutions take the place of expensive 5-axis CNC machines. To this end, manufacturers have developed the stability in robots required for machining the hardest materials. Servo stabilisers are mounted on individual robot axes in part to accomplish this. They promise reproducible machining, during which the required dimensional tolerances are maintained. In addition, improved control technologies are provided, which are based on CNC-controlled movement planning.
Machine vision monitors weld seams
Together, robots and industrial machine vision are providing increasingly more optimised positioning solutions, for example for welding operations. Quality inspections of weld seams are becoming increasingly more precise and faster, thanks to machine vision. This task has already been handled reliably for workpieces made of steel for quite some time. Now, new technologies are making it possible to monitor weld seams of the optically more demanding material aluminium, which is also becoming increasingly important due to the lightweight construction trend. Because extreme reflections and dark deposits are customary, optical sensors were previously unable to handle this task.
Finishing is being automated
The tasks of machine vision with weld seams go beyond the simple decision “IO” or “NIO”. The sensors can even detect the type, extent and location of the welding defect precisely in the meantime and consequently provide completely automated finishing. To that end, different sensor systems and highly complex evaluation systems are combined. Surface inspection is important not just from aesthetic viewpoints, but also from functional ones. Surface defects on cylinder head gaskets can result in breakdowns later, for example. Machine vision provides complex inspection systems for this with special test software, customised lighting and high-resolution linescanning cameras. In addition, image sensors are becoming increasingly mobile. They can simply be mounted on robots and equipped with robot-capable gigabit Ethernet lines, which can cope with high stress on one hand and on the other hand provide higher transfer rates.
NZ Manufacturer May 2012
The successful man will profit from his mistakes and try again in a different way. – Dale Carnegie
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MANUFACTURING TECHNOLOGY
Steelworks 2012 improves structural steel efficiency
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o improve management efficiency for companies involved in the structural steel industry, there is Steelworks 2012, a ground breaking software solution. The aim of the software is to integrate sophisticated 3D design programs such as Tekla Structures with the automated manufacture and the control of production processes. European regulations for prefabricated structures cover items such as stress calculations and dimensions so managing this information through the production and build cycles is important for companies within the industry, as is the need for continuous monitoring of costs, capacity and delivery performance. Lantek Steelworks 2012 provides the solution to these requirements. The solution includes ERP capabilities which control costs, production, budgeting, planning, purchasing and warehousing. It also links to Lantek’s other software, Expert CAD/CAM automated nesting and CNC programming software for laser, plasma and punching machines, and Flex3d Steelwork which enables the cutting of I,U,L,T,H round and square sections. This system includes 3D nesting into the profile to optimize material utilisation, and produces safe and efficient cutting paths on sawing, drilling, punching, tapping, marking, oxycut and plasma machinery. In the existing version, which is fully Web based, intuitive operation through hot keys, dynamic filters, shortcuts, built-in email and the ability to export dedicated reports, has been added making the system much easier to use, even from tablets and smartphones, offering users the option of working on the move.
Purchasing and warehousing enhancements keep track of material requirements, help to improve cash flow and make the Purchasing Manager’s task much simpler. The dimensions of parts within projects is analyzed and considered against available stock material sizes. Pre-nesting simulation calculates the mix and quantity of material needed, while knowledge of delivery dates and production times ensures that the material is only purchased when it is actually required. Additionally, the system can manage the reservation of material for particular projects either from stock already in the warehouse, or from material ordered from a supplier, making it possible to reallocate scarce material as
production priorities change. For the production stage, Steelworks can now manage even bigger projects with very large volumes of component parts, keeping track of cost as production continues and the progress of each stage of manufacture, all in realtime. Intelligence within the system collates all the documentation against each project and part, ensuring full traceability from finished component to raw material and supplier. The new Task Management module in Steelworks allows the software to handle an unlimited number of parts within a job, making the software able to handle the very largest projects. Its revamped interface, customisable menus and new organisational capabilities
NZ MANUFACTURER • June 2012 Issue • Features Opinion Manufacturing Profiles Letters to the Editor Politics of Manufacturing Trade Fair World Diary of Events World Market Report Q/A Export News Business Opportunities Commentary As I See It Business News Appointments Around New Zealand Australian Report New to the Market Lean Manufacturing Equipment for Sale Recruitment Environmental Technology Manufacturing Processes
make it easy to filter and select parts, speeding up and simplifying the drawing, nesting and machining of components of any shape, while its material allocation tools ensure that stock material is appropriately reserved for manufacture. Interoperability with Tekla Structures is improved in Steelworks 2012. The description and numeric identifiers are taken through the whole system, as are technical details such as material specifications, sizes and finishes, giving much better transparency and visibility for the whole project. Similarly, design updates in Tekla Structures can be managed through the Lantek Steelworks system ensuring that the latest design data is always being used in manufacture.
www.nzmanufacturer.co.nz
Manufacturing Technology Workshop Tools Composites Lean Manufacturing Advertising Booking Deadline –15th June 2012 Advertising Copy Deadline – 15th June 2012 Editorial Copy Deadline – 15th June 2012 Advertising material is to be sent to: Max Farndale, P O Box 1109, Hastings 4156, Hawke’s Bay Email: max@nzmanufacturer.co.nz Tel: 06 870 4506 / Mobile 027 628 2033
Editorial material to be sent to : Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: words@xtra.co.nz Tel: 06 870 9029 Fax: 06 878 8150
At NZ MANUFACTURER our aim is to keep our readers up to date with the latest industry news and manufacturing advances in a tasty paper morsel, ensuring they do not get left behind in the highly competitive and rapidly evolving manufacturing world.
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NZ Manufacturer May 2012
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NZ Manufacturer May 2012
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business@eeca.govt.nz, www.eecabusiness.govt.nz/motor-rewind
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NZ Manufacturer May 2012
AUCKLANDReplika’s MANUFACTURERS boss calls on government to back manufacturers
Business, more than any other occupation, is a continual dealing with the future.
– Henry Luce
From page 1
“But having said that, look at the foresight and commitment coming from the Australian government, in preserving their car industry recently. And the benefits to their overall economy are there to see already, in the jobs saved in the support industries, as well as the pride Aussies have in their Holdens. That’s something we need too to inspire many more of our youngsters: to want to have a career in manufacturing top-quality products for the world.” Plowman believes investment flows to countries which demonstrate stability and consistency in behaviour, like Singapore, Scandinavia etc. And he has seen that at work, first-hand in Germany, during his many trips to the Trumpf factories and private visits. “If you talk to youngsters there they don’t want to be in media or sports management – they want to be engineers. Engineers are the superstars in Germany: everything else comes second to that. And because they have the best people, they produce the best products, and the world queues to buy them, mostly at premium prices – so they can pay their employees well. “The days of getting away with junk are over. China and Asia have got that mass-market covered. We, as a country, for all the benefits it will bring to all – not just those who work in industry – need to be coordinated and facilitated to the quality and efficiency end of the industrial spectrum.
“The alternative is an accelerating decline, the loss of skills and an opportunity to generate sustainable and better-paying jobs than in tourism, forestry and dairying – unless you are the bosses in those low-paying industries,” he warns. Replika is demonstrably committed to the model he espouses. He is not ungrateful for a government sponsored, Action Learning general management course, which he and his team are currently going through. And he’s even prepared to put himself through a 360-feedback exercise! Don’t get him wrong; Plowman is not looking for the government to do anything he isn’t doing for his business already – and the last thing he wants is a handout. He doesn’t need it: New Zealand manufacturing does. He buys the best equipment – Trumpf, of course – hires, and most importantly, keeps top people and puts a lot into training them. He also insists that they compete, internationally (Australia, primarily) at the highest level, while inspiring pride, dedication and commitment in providing just what their customers need, at the time and place they need it. Right first time. Plowman and Replica have developed and sustained over many years now what he calls a ‘close working relationship’ with a major offshore client in the hospitality trade, for example. “We work together at the design stage and pool our knowledge, test
Colin Plowman (right) drops in on operator, Ben Beasley. www.nzmanufacturer.co.nz
the model and work on making it in the most cost-efficient way, without sacrificing quality at any point. And we keep revisiting our manufacturing process. Can new technology improve it? Can we rationalise any component? “Our commitment to customers is that we will supply quality sheet metal components and assemblies at all times. We invest in and employ the best technology, Trumpf, across the board, to help us to achieve that. The scourge of complacency is overcome by constantly enhancing the techniques we use and by cross-training to ensure we can handle leave and illness, as well as any current or future challenges, seamlessly. “We don’t automatically pass on all increases that come our way either. Training and new technologies deliver productivity and cost efficiencies. In fact we have largely managed to hold prices through the tough times, because if we didn’t, our customers could be less competitive, and that doesn’t work for us either. So we aren’t asking government – this and those that follow – to do anything we don’t do ourselves,” he emphasises. Don’t under-estimate him simply as a tough nut, demanding more and more. There is the human side as well, in the foundation of his investment approach. Amongst the 20-odd employees are operators with more than 30 years’ service, and a significant corps in the 10 to 25-year category; all highlyskilled and experienced and readily available when 24/7 operating is necessary. Included amongst the latter group is the son of one of the owners of the original company, which he bought in 1999 and changed the name to Replika in 2002. Ben Beasley is today in that core grouping and apparently thriving on the challenge of playing in the ‘super-league’. Plowman has also successfully integrated the younger generation of high-tech designers and 3D CAD operators into the ethos and fabric of the company, without any push-back from the old guard. Not always that easy, as many owners can testify. And I haven’t even mentioned his absolute pride and joy, the Trumpf (what else) Solid State 5030 ‘fibre’ laser cutter, powered by a specially installed power unit, directly overhead on a mezzanine floor in the vast workshop, which cuts 15 mm stainless steel; 20 mm mild steel; and 10 mm aluminium sheet, which are 1,500 x 300mm large, at speeds and with precision not seen in New Zealand before. Moreover it uses no lasing gases
and half the power of the traditional CO2 powered units. But, as they say there’s more. High-speed, flexible manufacturing and state-of-the-art CNC punching, CNC laser cutting and CNC folding machines, supported by a seasoned capacity to deliver short-runs, which in turn enable customers to apply JIT practice. Each of those highlights has a story behind it too. The various CNC punching capability options include full 360 tool rotation and full-sheetpunching, without the need to re-position. The hydraulic brake pressing ranges across 3,000 mm to 130 tonnes, while the V850S is on an eight axis machine. Power pressing ranges from 2 – 100 tonnes. And, of course, they have guillotining capabilities too. What does he see his leadership delivering to the Replika mix? “Vision, backed by the courage to seek out the very best and latest technology (which he concedes is not that easy, especially financially) and adapt it to continue to deliver stable costs and unsurpassed product quality. Excellence in customer service, every time. And that includes the previously mentioned, innovation in partnership with our customers.” Interestingly, although he does not highlight the point, that last paragraph is pretty much what he would like to see from government – leadership; celebrating and promoting (locally and abroad) a pride in what Kiwi manufacturers deliver; coordinating strategic thrusts into thoroughly researched new markets; and collaborating with the sector to deliver irresistibly priced, top quality products which will raise wages (and thereby the desire of youngsters to get into the industry) and fund extra, relevant training. In short, everything our successful company leaders are too busy to get around to doing. A massive survey of nearly 8,000 Kiwis, as part of leading, global employment agency, Randstad, this month only included two manufacturers in their top 20 ‘desirable employers’. Fisher & Paykel Healthcare and Fonterra, which many would regard as being in ‘agriculture’, rather than the manufacture of milk powder. Colin Plowman is ringing a timely bell. Will government respond and take up his challenge? nextSTEP www.replica.co.nz
NZ Manufacturer May 2012
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AUCKLAND MANUFACTURERS Living the dream: Auckland exporters honoured The beginning is the most important part of the work. – Plato
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chool kids won’t dream of careers in temperature and humidity control, shipping, logistics, or making snack foods, but they might if they knew where it could take them. Auckland companies supplying precisely these products and services have been named finalists in the Air New Zealand Cargo Export New Zealand Auckland Awards 2012. Export New Zealand runs the export awards each year partly to inspire our business owners and budding entrepreneurs, but mainly to celebrate our export heroes who are demonstrating huge success despite global uncertainty and in the face of intense market competition. The export awards are run by the Export New Zealand Auckland division of the Employers and Manufacturers Association (EMA). The winners will be announced at a gala dinner on June 22nd. A new award recognising an individual for their Inspiration to Exporters will be presented by a special Government guest.
Westpac Exporter of the Year (total sales over $35million)
A company recognised for excellence in building extraordinary and sustainable export growth. • Jack Links NZ Ltd - manufactures beef snacks, a good source of protein and iron, with fewer calories, fat and carbs per serving than most other snacks. • GMP Pharmaceuticals Ltd – manufactures natural health products of New Zealand origin such as complementary medicines, dietary supplements, functional foods and infant formula. From page 1
“And I have one of the more astute financial minds available to them on the premises, prepared to provide her services on an asneeded contractual basis. What more could they need? Just the guts and determination to ‘go for it’. “I have done well out of this industry, after being given a chance as a new immigrant, 40-odd years ago. The business has been good to me and so has New Zealand. I now want to put something back, by helping to maintain the necessary manufacturing skills in the country; to get my older colleagues, like myself, to pass those on before we fade out – and I include my grandchildren in that; and to get other business owners, in a similar situation to mine to stabilise and then rejuvenate the industry, because neither the government nor the banks are going to.
• Temperzone Ltd – designs and manufactures air conditioning systems mainly for commercial buildings and also for residential and industrial applications.
QBE Insurance Exporter of the Year (total sales under $35million)
A company recognised for excellence in building extraordinary and sustainable export growth. • Patton Ltd- makes and supplies components for refrigeration, air conditioning or mechanical services system, such as condensing units, air-cooled condensers, unit coolers, dry coolers and water chillers. • Canary Enterprises Ltdmanufactures value-add dairy and selected non-dairy products, such as butter medallions, butter sheets, clarified butter and apricot cream cheese disks. • Temprecord International Ltd – produces temperature recording equipment used in food processing, scientific processes and other industries.
TNT Express Emerging Exporter of the Year
A company recognised for excellence in starting out to secure a sustainable export business. • NZ New Milk Ltd - produces premium, quality infant formula that is consumer specific, in packaging individualized to the customers’ specification. • Madeblunt Ltd - designs and markets innovative umbrellas using patented technology trademarked as the “Blunt umbrellas” brand. • World Wide Access Ltd – sells
online and ships New Zealand products fast to customers in North America, Europe and Asia, a new way of exporting enabled by technology. • Brolly Sheets Ltd - designs and makes waterproof bedding and chair pads, and toilet training aids.
Endace Hi-Tech Exporter of the Year
A company recognised for excellence in building extraordinary and sustainable export growth, working in the areas of electronic, computer software and hardware, IT systems or other products based on these technologies. • Xlerate Technologies Ltd develops, delivers and integrates GPS vehicle tracking and telematic solutions to large and small scale commercial fleets and consumer vehicles. • Orion Health Ltd - software developer, providing world class leading healthcare integration software and clinical workflow solutions to organisations. • Compac Sorting Equipment Ltd - produces turnkey solutions and equipment for sorting and packing fruit.
Baldwins Intellectual Property Best Use of Commercialisation of Innovation
A company recognised for excellence in the commercialisation of innovation to achieve a profitable and self-sufficient business. • Straker Interactive Ltd trading as Straker Translations - online translation company for documents and multi-lingual websites. • enlight photo Ltd – designs
and creates practical, inventive products and software for photographers. • ENSID Technologies Ltd - pioneer of polymer RFID (radio frequency identification) transponder tags manufactured using patented plastic infusion technology, for use on animals, fish and more.
BDO Deal of the Year
A company recognised for the strategic planning underpinning the successful deal, and which has received recognition from the market for innovation, tenacity and its calibre, executed from January 1st 2011. • EasiYo Products Ltd manufacturers and markets a unique yogurt starter system. • Compac Sorting Equipment Ltd - produces turnkey solutions and equipment for sorting and packing fruit. • Superyacht Interiors NZ Ltd - designs, manufactures and installs super yacht interiors of uncompromising quality anywhere in the world.
Supreme Award
The winner is chosen by the judges from the winners of each category. • Export New Zealand Auckland Award for Inspiration to Exporters This new award this year will recognise the contribution made by an exporter to other exporters, as chosen by the Export New Zealand Auckland executive committee.
Companies slash maintenance for profit, says veteran “It’s up to the senior players to stand-up and make it happen,” Rocque enthuses. He recalls a recent situation where a talented, young, industrious tradesman, whom he knows well, approached a couple of banks for a $150,000 bridging loan to purchase a functioning workshop. “Long-story short, they were all happy to loan him the money to buy a house in varying amounts up to $400,000, but not for a business which would create exports and job opportunities. We are in a pretty pickle when the banks, having lost their heads and our money are now only interested in residential property and probably planning to take us on the same roller-coaster ride again – all the while sending their massive profits back overseas. “Certainly that is an area where the government could have taxed
those profits and used them to boost manufacturing and export growth,” says a man who has pretty much funded the growth of his own business over many years. He describes his ‘rent a machine’ project as a growing success, as he and those who have tried and benefitted from this revolutionary
approach, spread the word that innovation in the manufacturing industry, in hard-times, needs to be brought to bear on more than products and processes. The whole structure needs to be re-examined. Similar models have been applied before in the USA and Asia and Japan. www.nzmanufacturer.co.nz
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NZ Manufacturer May 2012
DEVELOPMENTS
The successful man is the one who finds out what is the matter with his business before his competitors do.
– Roy L. Smith
The all-new HammarMega Reach struts its stuff
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he Hammar Mega Reach is not only able to handle containers in a second row on the ground. It is also capable of double stacking containers in the second row and handling three containers high in the first row. That means a total of five containers are now within the lifting reach of the new Hammar Mega Reach, all without having to move the vehicle. The first Mega Reach sideloader has already been built and is operating in Hammar’s home market in Sweden. It’s now ready to reach out to customers around the world, including New Zealand. The Mega Reach has been designed for the 150- and the 190-series, which, for New Zealand means it is available on the 151 HS, 155 HS (Mega Transfer) and the 195 S. The idea for the Mega Reach came from a customer in French Guiana, who had noticed the extendable top arm that Hammar has fitted as an option for many years and asked if an extension could be added that handles containers in the second row for optimising his handling in a customer yard. The designers were able to turn his request into reality very quickly. For example, an operator arriving at a customer’s depot to deliver an empty box and pick up a full one, would park next to the full box, unload the empty one on the other side (in second row) and then pick
Hammar reaches a new dimension
up the full box, without having to move the vehicle. Other uses could be in a yard moving and storing containers. The Mega Reach shown in the picture is built on a brand new 2012 Hammar 195 HA, 20’-45’ capacity and 36-tonne SWL side loader. The chassis is an ‘A’ type, built in three extendable parts to be extra short
in the 20’ position and handling 45’ containers in the full, extended position. Hmmara is a world leader in the design and production of side loaders and has been present in the New Zealand market since 1992. The company specialises in high quality products, featuring Swedish componentry and steel,
to deliver a lighter, stronger and more reliable side loader tailored for each customer at its South Auckland workshop. Models cater for 10-to-45ft containers and among its latest offerings is an optimal weight distributed 3-axle 45ft side loader with a tare of just 10,540 kg, including separate engine power pack.
Innovative company revolutionises viticulture practices worldwide
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arlborough based KLIMA has developed the world’s first Cane Pruner, a machine that cuts, strips and mulches grapevines - jobs that until now have always been carried out by hand. In addition to giving grape growers better control over vine quality, The KLIMA Cane Pruner reduces labour costs associated with pruning by around 50 per cent. The KLIMA pruning system and machine have proven popular because they take the pain out of pruning, substantially reduce grape growers’ pruning costs and provide a rapid return on their investment. Since launching The KLIMA Cane Pruner in 2010, KLIMA has made impressive inroads into the New Zealand, Australian, French, Italian, German and Austrian markets. Significant interest is being shown by many other large international www.nzmanufacturer.co.nz
markets, with new markets to be announced later this year. KLIMA’s offshore success has been assisted by a strategic partnership with German vineyard machinery manufacturer and distributor, ERO Weinbau. The companies have joined forces to jointly develop and commercialise the KLIMA technology around the globe. KLIMA provides innovative technology and viticultural knowledge, and ERO supplies the manufacturing excellence, distribution networks, brands (ERO and Binger) and industry credibility – which is particularly in the important European markets. Not long after KLIMA negotiated a licensing arrangement with ERO, The KLIMA Cane Pruner (marketed in Europe as Viteco) went on to win the gold award in Europe’s most prestigious viticulture trade show, Sitevei (held in Montpellier,
France) – a first for any New Zealand or German company. Shortly afterwards it also won at Italy’s inaugural Enovitis Milano awards.
KLIMA develops innovative products that solve grape growers’ problems and give them greater control over quality, timing and cost.
NZ Manufacturer May 2012
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REPORT: TRADE MISSION TO INDONESIA
Indonesia: $1 trillion dollar economy and growing fast
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he recent business trade mission to Indonesia was very successful and a real eyeopener as to the opportunities for kiwi exporters. The trade mission focussed on the obvious areas of synergy – which are: • Geothermal – they have the biggest untapped geothermal resource in the world and declining oil output and we have the engineering expertise to help develop it. • Education – we want more of their students coming here – they are particularly keen on training people to PhD level. • Tourism – a win with an announcement by Garuda and Auckland Airport that they will fly direct to Auckland from Jakarta. • Aviation – we have worldclass air traffic control training, commercial pilot training, engineering related to aviation skills (baggage handling and logistics management) and they are planning on building 20 new airports in the next 50 years. • Food & beverage – with around 240 million people, an average of 6% growth per annum, a middle class the size of Australia and population growth the size of New Zealand every year, clearly there are a lot of mouths to feed and there is huge scope for our high-quality meat, dairy products and fresh fruit and vegetables that we grow so well. Fonterra announced a new investment in milk processing and packaging facilities while on the trade mission.
New Zealand is not the only country that has Indonesia on its radar. Indonesia has had a raft of world leaders from developed and developing countries beating a path to its door (this year UK Prime Minister David Cameron has visited amongst others). It seems they host a trade mission every few weeks. By 2030 it is predicted that Asia will supplant the West as the global engine of growth, and Indonesia is our closest Asian neighbour. Only 22% of their economy depends on exports, so they were relatively sheltered from the global financial crisis by their large domestic demand.
Key points: • FMCG trends were 12% growth in 2011. • 3rd largest middle class in the world (middle class defined as US$1-200 a month and half the population of Jakarta fall into this category). • Fresh food is number one consumer concern and transport is second (roads are very congested.) • In the “middle class” there has been over 17% increase in spending on food; 60% growth in ice cream consumption (on the back of lots of new innovative products and promotion), frozen meat and fish is up 18%, biscuits up 4.8%. • Innovation is king – 88% say they like trying new things and launches of new products drive growth e.g. new brands of instant coffee, powdered milk, ice cream etc. • Value for money is important, but
also 58% say convenience is more important than price. • They are big users of social media and mobile phones – with 78% mobile phone penetration. • Key themes were innovation, value for money and convenience. I focussed on the food and beverage sector while in Jakarta. We had a look at the large shopping complexes and the top end supermarkets in a couple of these complexes. These complexes cater to the very rich in Indonesia, and they are very brand focussed with all the big US and European brands in the malls (Yves St Laurent, Gucci, Prada, etc – every top brand you have ever heard of and plenty that I had never heard of...). The two upmarket food supermarkets we visited were: Sogo Food Hall, Foodhall Plaza, Indonesia – hosted by Novilia Tjandra, Buyer for Fruits and Vegetables. 10 stores and 99 Ranch Market – 8 stores. Kafi Kurnia from the Indonesian Association of Exporters and Importers (ASEIBSSINDO) gave us a very good presentation on the fresh fruit and vegetable import opportunities and a good overview of the Indonesian economy generally. The Director for Indonesian Quality in the Ministry of Agriculture, Mrs Banun visited New Zealand from 27-29 April to look at our food safety systems, and it is hoped New Zealand will get country recognition for our SPS practises and we will sign an MOU. This could mean that New Zealand produce will just need a certificate that shows security clearance has been achieved and the Indonesian Association of Exporters and Importers (ASEIBSSINDO) is pressing for a certificate to be able to be kept on file to cut down on paperwork etc. The Horticulture Export Authority, PipfruitNZ and ExportNZ think it would be good to get some ASEIBSSINDO members to come to NZ for a tour of our fresh produce. Some of them have been to NZ already as guests of Zespri, but it would be good to have an organised tour for them to showcase our produce. * It was pointed out that the best food supplies should also go to Bali for the food service opportunity. * They liked the Envy apples – Indonesians like sweet flavours. * Don’t be shy on price and under-price produce – price equates to value... * They think lamb is imported goat. Indonesians think goat meat
Report from Catherine Beard, Executive Director of ExportNZ and a member of the recent trade mission led by PM John Key and Trade Minister Groser. has aphrodisiac properties and chefs like to use lamb because it is tender and does not smell, so some restaurants sell lamb as goat. Those wanting to do business in Indonesia will have to deal with infrastructure frustrations (logistics are difficult with infrastructure development lagging behind demand). In addition the regulatory style of the government can be a bit random and throw out challenges. Corruption is a business risk as well that has to be navigated. The answer seems to be to find good partners to work with, seek good legal and accounting advice and develop good working relationships. BECA has been in Indonesia since the 1970’s and have never had a court case (they have avoided any dispute getting this far through carefully managing relationships and solving any problems before they become big problems). They also have four people who work full time in Indonesia on regulatory issues. Having said that, they are running some very large projects. The opportunities are there; but like any market it takes time and investment to reap the rewards. New Zealand companies exhibited at FoodAsia 2012 expo. I have to say that the Barkers stand was attracting lots of admiring people due to the amazing display of cakes they had produced. Beautifully presented. nextSTEP Contact: Fiona Acheson, NZTE Trade Commissioner Malaysia, Indonesia and Brunei. fiona.acheson@nzte.govt.nz www.nzmanufacturer.co.nz
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NZ Manufacturer May 2012
BUSINESS NEWS
A man to carry on a successful business must have imagination. He must see things as in a vision, a dream of the whole thing.
– Charles M. Schwab
Exporter guide – Philippines
Enforcement of Contracts
Mitigating Buyer Non-payment Risk
TYPICAL terms of trade sought by Philippine buyers range between 30 - 60 days1. While the payment history of corporate buyers has been relatively stable over the last 12 months, the NZECO recommends an exporter obtain trade credit insurance on any open account trade. The primary benefit of trade credit insurance is covering the risk of non-payment due to commercial and political events. It is also a good way of ensuring due diligence is undertaken on a Buyer – if a trade credit insurer declines cover on commercial grounds, then this should be a warning to an exporter looking to offer credit. This is especially useful when doing business in the Philippines because it can be difficult to obtain reliable, audited financial statements. Another benefit of trade credit insurance is that it may enable a proven exporter to obtain a trade finance facility from its bank to help fund the period between paying its suppliers upon shipment of the goods and receipt of the final payments. The Philippines’ banking sector has strengthened, and an alternative way to mitigate repayment risk is by negotiating a letter of credit or other form of documentary collection.
EXPORTERS should be aware that a condition of most trade credit insurance policies (including the NZECO’s short-term trade credit policy) is that in the event of non-payment owing to a dispute between exporter and buyer, the exporter must first obtain a binding legal judgment that validates the debt owed to the exporter. Enforcing contracts in the Philippines can be challenging. The business and credit situation in the Philippines is difficult, particularly in the recovery stages. Corruption is prevalent which creates uncertainty about the stability of ground rules. The business environment is heavily influenced by powerful elite who have the means to persuade government actions and regulation, which further brings into the question the impartiality of the courts. Legal processes are renowned for being lengthy and the rates of recovery are generally low. The World Bank estimates that filing, obtaining and enforcing a court judgment takes on average 842 days to complete, involving 37 procedures and costing 26.0% of the claim2.
Economic and Financial Issues
TRADE CREDIT insurance may also cover the risk of non-payment due to the imposition of foreign exchange controls that prevent a foreign buyer from converting local currency into foreign currency to make its payments.
www.nzeco.govt.nz www.nzmanufacturer.co.nz
The peso (PHP) is floating, albeit with occasional intervention by the central bank, and whilst this provides some flexibility for the currency there remains is a risk of currency turbulence associated with the country’s public finances and occasionally chaotic politics. The economic medium term outlook appears cautiously optimistic, in part due to the Philippines’ resilient economy during the global financial crisis. Despite adverse developments across political and economic arenas and the export sector remaining under pressure, broader commercial conditions remain broadly favourable. If credit conditions remain agreeable and the currency continues to strengthen, payment risks are likely to remain stable into 2012. The Philippines underwent political transformation when President Benigno Aquino won the election in May 2010. Whilst political conditions for reform have been strengthened, it is unlikely that Aquino will successfully restore the social and structural problems that the country has been living with for so long. Plans to reduce poverty have stalled, with under-employment affecting a quarter of the growing labour force, particularly the young. Many households live with small margins on the verge of poverty. Under-employment is a chronic issue, affecting 25% of the population.
Offering Extended Payment Terms
EXPORTERS of goods that have an economic life greater than a year may find that their Philippine buyer requests a vendor finance option with extended payment terms. Conversely, exporters may consider offering extended payment terms for competitive advantage or to advance a postponed order. The NZECO has had positive experience underwriting repayment terms of up to 5 years provided to Philippine buyers in the electricity and aviation sectors. The NZECO needs to be satisfied in the creditworthiness of the buyer, or with a guarantor of the buyer (which does not have to be a Philippine based company). These deals are structured in partnership with a bank, and often may result in a financing option that is cheaper than the buyer can obtain locally. nextSTEP Contact: NZECO Tel 04 917 6060 or eco@treasury.govt.nz 1 Dun & Bradstreet: Country RiskLine report, April 2012 2 World Bank “East of Doing Business in Vietnam 2011 (http:// w w w w. d l i n g b u s i n e s s . o r g / d a t a / expoloreeconomies/philippines/)
NZ Manufacturer May 2012
The winner is the chef who takes the same ingredients as everyone else and produces the best results. – Edward de Bono
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OPPORTUNITY HAMILTON
Alliances bring engineering careers to life
ollaboration between Waikato engineers and educators is being upheld as a New Zealand model helping meet sector skills shortages. Waikato Engineering Careers Association (WECA) co-ordinator Mary Jensen said the region’s engineers and educators are among the best organised in New Zealand in working together to combat sector skills shortages. “Now it’s time to build on this collaboration and become a centre of excellence for mechanical engineering in New Zealand,” Mary said. About 60 secondary school teachers, polytechnic tutors, university lecturers, apprenticeship co-ordinators and engineering business owners attended a WECA engineering evening for educators at Hamilton’s Stafford Engineering recently where Mary praised them for helping meet the organisation’s goal of creating enough skilled workers for the sector. “Our mission is to provide Waikato employers with a sustainable flow of engineering trainees and job seekers skilled to meet the needs of the engineering industry. It’s great our region’s engineers and educators are so committed to this,” Mary said.
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Skills shortages in the sector are exacerbated by mechanical engineering being a ‘hidden’ industry not often seen in the media making promotion extremely important, Mary said. “Young people and their parents often aren’t aware of how to enter mechanical engineering as a career and that makes it difficult. The more businesses and educators who get on board with promoting these great careers, and the educational pathways within them, the better,” she said. Partnerships with Wintec, the University of Waikato, industry training organisations and secondary schools, along with the dedication of about 80 Weca members, make the organisation one of the strongest of its kind in the country, Mary said. Weca has also formed alliances with the Technology Subject Associations (TESAC), fostering the development of technology in the New Zealand curriculum, and Technology Education New Zealand (TENZ), a network promoting and supporting technology education. “Mechanical engineering is vital to the local dairy industry and the Government’s growth agenda to produce higher value exports and therefore educators are vital to the
Stafford Engineering’s Roger Evans, left, and Technology Education New Zealand’s Philip Appelman with Weca’s Mary Jensen.
future of New Zealand,” Mary said. The engineering evening was part of the lead up to Engineering Careers Day in May. The day, a joint venture between Weca and Wintec, is part of Get a Life careers month and includes tours through engineering businesses. WECA was formed as a notfor-profit organisation in 2003 by small and medium mechanical engineering companies responding to sector skills shortages. “These people are committed to developing the next generation of engineers.” More than 12 % of all employment in Waikato is in manufacturing. Mechanical Engineering in the region covers a variety of fields from
building special purpose machinery and product development to welding, machining and precision tool making. Waikato engineers may work in aluminium extrusion, steel tube manufacturing or plastic moulding. Technology teachers, tertiary engineering teachers and WECA members at the evening had tours of the Stafford Engineering factory and the chance to see Hamilton businessman Bart Engelsman’s Akwakat invention. Akwakat transforms ordinary mountain bikes into twin inflatable hull water bikes. The inflatable pontoons, folding drive shaft and front rudder fit into a carry bag with a total weight of less than 15kg.
Waikato sustainability graduates land top jobs
tudents who’ve taken Waikato Management School’s graduatelevel sustainability paper are popping up all over the world in jobs with corporations that want to become more environmentally and community friendly. Joe de Jong graduated last year and is now working in Stuttgart, Germany, for PE International, where he gets to put into practice everything he learned from the Strategies for Sustainability paper (STMG 580). PE International is the international market leader in strategic consultancy, software solutions and extensive services in the field of sustainability. De Jong currently works as an analyst
developing sustainability solutions for corporate clients worldwide. “I am primarily in a team using the SoFi software platform, a corporate carbon footprinting tool,” he says. De Jong sees a direct connection between his sustainability studies and the work he is now doing for Fortune 500 and Global 200 companies. “The strategic and product sustainability consulting arena is growing in demand, which means companies are always on the lookout for graduates who ‘get’ sustainability,” De Jong says. “Executives at PE International have told me that they would be interested to hear from more Waikato Management School graduates with a world-class knowledge of
Associate Professor Eva Collins.
sustainability.” Other STMG 580 graduates have also found their sustainability skills in demand.
Paulien de Haes now works as a consultant at KPMG’s Climate Change & Sustainability practice in the Netherlands, while Trent Bos took a “mainstream” job with beverage and food giant Lion in Australia. When his employers found out that he had taken a sustainability paper, they asked him to be part of the team that put together Lion Nathan’s sustainability strategy, with a multi million dollar budget. Bos has also just been named Youth Ambassador for Australia to the United Nations, and in that role will be attending the Earth Summit in Rio in June this year. Waikato’s STMG 580 paper is taught by Associate Professor Eva Collins.
www.ighamilton.co.nz
www.nzmanufacturer.co.nz
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NZ Manufacturer May 2012
PRODUCT NEWS ‘The Probe’ H ome handymen and professional tradespeople will light up when they see the new ‘Probe’ LED Inspection Lamp, an advanced, compact lamp which produces a powerful light to illuminate those difficult-to-access spaces. Stylish in its design and using the latest high intensity SMD L.E.D’s, the ‘Probe’ produces an intense even spread of light from its long, slim lens and has the unique feature of providing L.E.D illumination from the tip so that it can provide light in restricted areas. The lamp is constructed from a soft, rubberised material for nonslip, comfortable handling, the lens is shatterproof polycarbonate and the power pack is a lithium-ion battery, capable of providing two hours continuous use before recharging is required. The lithium-ion battery contains no memory effect when charging and has a longer shelf life. For storage and recharging, the lamp fits neatly into the supplied 240V docking station. Also included for convenience and flexibility, is a 12/24V recharging plug and socket, which fits directly into the light making it ideal for trades people on
the move. Whether it’s a mechanic or handyman checking the brake pads on a vehicle without removing the wheel, an electrician working on a complex switchboard, an auto electrician working under a dash, or a boatie inspecting a dark hatch, the slimline ‘Probe’ has few rivals when it comes to shedding light in the darkest confined spaces.
The new slimline LED ‘Probe’ Inspection Lamp.
The biggest mistake people make in life is not trying to make a living at doing what they most enjoy.
– Malcolm Forbes
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Particle counter delivers quality measurements
he Fluke 985 Particle Counter is a rugged, highly accurate meter that measures airborne particles to troubleshoot and monitor indoor air quality (IAQ). The 985 is ideal for HVAC and IAQ professionals to verify clean room classifications and conduct HVAC filter testing and IAQ commissioning and investigations in hospitals, labs and other sensitive environments. The Fluke 985 Particle Counter features: • six particle size channels with a range of 0.3 µm – 10 µm, assuring accurate measurements • rugged, ultra-lightweight, ergonomic design for easy single-hand operation • in-device storage of 10,000 records for easy access to historical data • ten hours of standard-use battery life to last a full workday.
The 985 has a large 8.89 centimetre (3.5 inch) QVGC colour display with backlight and intuitive icons plus a large font option for easy navigation and viewing. It features configurable settings for the display, sample methods and sample size alarm. Data can be presented in traditional tabular or as a trend graph and exported to a USB memory stick or directly to a PC via a USB or Ethernet cable. The meter meets ISO 21501, JIS B9921 and CE standards. The 985 comes with a cradle for charging and USB and Ethernet communications, ENET CAT5E cable, USB-A to MINI-B cable, 12 VDC power supply, zero count inletfilter, filter adapter, sample inlet protective cap, hard case, getting started manual and user manual CD.
Quality laser marking on a full range of metals Powered by
LaserStyle software Graphic Level, the LS100 Ex Fibre solution is ideal for marking industrial parts, identification plates, rating plates, trophies & awards, tankards, gifts, jewellery. To contact us call 07-843-1128 or refer to our website www.flightstructures.co.nz
Easy to set-up in a factory, workshop, office or retail outlet. Phone: +64 9 478 8422 www.tilt.co.nz • sales@tilt.co.nz
www.nzmanufacturer.co.nz
NZ Manufacturer May 2012
PRODUCT NEWS
The country is full of good coaches. What it takes to win is a bunch of interested players. – Don Coryell
UV curable adhesives a good option
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etting a good result in terms of aesthetic appearance and structural performance when bonding decorative glass or display cases can be very tricky. In most instances a UV cured adhesive is one of the best options when working with this substrate. Permabond has a wide variety of UV cured adhesives for applications as above as well as for use in the medical field. Usually, when joining pieces of glass to make a cube, you have to polish the edges of the glass because most UV adhesives are too thin to fill any sort of gap. Permabond’s UV gel takes care of this problem by being specified to fill up to 2.5 mm gaps. For bevel bonding (such as for decorative glass window panels), Permabond offers a low viscosity, optically clear UV adhesive. It allows for accurate alignment of components and its viscosity minimises the entrapment of any bubbles. Another problem encountered is trying to bond opaque glass to steel, more especially encountered with costume jewellery. In this case the UV light cannot penetrate the substrates so Permabond has developed a dual cure alternative. When the two pieces are assembled a small bead of adhesive will ooze out. This can be cured with the UV lamp to hold the pieces in place while the anaerobic part of the cure takes place in the shaded area at a slower rate. Permabond has also patented a number of special UV cure
adhesives for the sealing of primer caps on ammunition and the sealing of the crimped end of the cartridge for blank ammunition. All the ammunition adhesives will fluoresce under UV light to prove a perfect seal. A good quality UV lamp is a must for this type of bonding with a standard wave length of around 365 nano metres (nm). However, when working with UV treated glass or plastic 400 - 420 nm is required. nextSTEP Contact Homersham Ltd Tel: 0800 659 888 or 03 358 8309
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Metal jerry cans are back
he classic metal jerry can is making a comeback in New Zealand. After falling out of favour when plastics came to the fore, a move back to metal has been prompted by improved designs, newer technology and safety concerns for older plastic fuel cans. The latest metal cans are said to be safer, having undergone a series of stringent tests and also meet defence forces specification. They’ve been dropped, subjected to fire and corrosion, passing with flying colours – they are very tough and durable. All the Pro Quip metal jerry cans are designed with a unique 12mm square breather pipe with a wide funnel opening in the spout to ensure smoother pouring of fuel. They come with a quality bayonet closure that is protected by a locking pin, so the cap cannot open accidentally if knocked over. They have been pressure tested up to 415kpa to ensure they are leak proof in any position. And they’ve been given a special coating on the inside to prevent rusting, which means they are also suitable for holding water. The cans are certified to Australia/NZ Standard 2906:2001 and meet UN approval and TUV standards.
And they look nothing like the drab old cans of the past, now being made in ten fashionable colours, including red, orange, green blue, grey and brown. The Pro Quip metal jerry cans are available in five, ten and twenty litre sizes and are designed to fit standard vehicle racks and a range of other accessories include a separate pourer and replaceable rubber seals. To make sure that motorists and boat owners know exactly what type of fuel is in the can there is a new range of ID tags. The coloured tags can be purchased ready-printed with the name of the contents, such as 2-stroke, petrol, oil, diesel etc, or there is an unprinted clear label that can be written on.
Bushings and wear rings wear well
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raphAlloy wear rings and bushings provide a better performance r to standard metal stationary and rotating wear parts in pumps for CO2 service in oil field applications. Self-lubricating GraphAlloy a graphite/metal alloy, eliminates concern about bearing failures or possible flashing of CO2. The ability to operate without additional lubrication is important in CO2 injection applications because CO2 has low lubricity. Standard metal wear parts rely on the lubricity of the liquid being pumped for proper operation so they are prone to failures in pumps used to inject CO2. In addition, due to high suction pressure required to keep CO2 as a dense phase liquid, flashing is always a possibility. CO2 injection in older, low flowing wells is becoming an increasingly popular method for permeating rock formations and
forcing more oil to the surface. Many older wells still contain vast amounts of oil locked in the pores of rock layers deep underground. CO2 injection often releases more oil in older wells than can be released by water injection. Use of self-lubricating, nongalling GraphAlloy materials in pumps for CO2 service provides cost savings by avoiding expensive downtime and field repairs caused by wear part failures. www.nzmanufacturer.co.nz
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NZ Manufacturer May 2012
DEVELOPMENTS
For every sale you miss because you’re too enthusiastic, you will miss a hundred because you’re not enthusiastic enough.
– Zig Ziglar
Boost for glow-in-the-dark products Design provides new perspective
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hristchurch manufacturer Ecoglo is finding new opportunities for their glow-inthe-dark signs due to positive changes in the new building code and lessons learned from the Christchurch earthquakes. Photo luminescent exit and emergency signs are now specified as an Acceptable Solution in the New Zealand Building Code released in April. Ecoglo’s products are designed to meet clause F8/AS1 Signs. Ecoglo’s exit signs and emergency signs are made from photo luminescent materials produced by Ecoglo’s patented manufacturing process. The lighting and signage systems harness sunlight and electrical lighting. The signs are then able to glow brightly when the lights are out to allow people to find their way out of buildings. Founding shareholder Paul Sapsford says, “Previously our signs met the code but building owners had to do a little extra work and get sign off from an engineer and local authorities. Now these signs meet the code “out of the box”. This is a step change for Ecoglo.” As well as signs Ecoglo also sells step nosings, handrail strips and edge strips that form part of a building’s emergency lighting system. These products comply as alternate solutions with New Zealand Building Code Clause F6 Visibility in Escape Routes. Local sales continue to receive a boost due to an upswing in local building activity since the Christchurch earthquakes. Ecoglo has recently installed products in many local schools, the University of Canterbury and the Re:Start mall. “The Christchurch earthquakes showed that our sustainable and non-powered emergency lighting has real advantages over electrical systems. Everyone in Christchurch can relate to dark stairwells with no lighting or signs.” Clean and green also doesn’t have to be more expensive according to Sapsford. “A compliant Ecoglo exit sign costs around $50 compared to
KEVIN KEVANY
09 520 5206 kevwrite@xtra.co.nz www.nzmanufacturer.co.nz
around $250 or more for a powered one.” There is also heightened interest from around the country and the company recently installed emergency signage and stair/ handrail edgings in a large Wellington high rise building. Sapsford says the company is keen to make the most of new opportunities. “Over the past couple of years we’ve gone from selling the product to people wanting to buy the product. We expect the changes in the building code to create even more demand for our products and provide a real boost for the company.” Over the past 10 years Ecoglo has installed product in landmarks around the world from the Burj Dubai, the world’s tallest building, to the Melbourne Cricket Ground. In New Zealand Ecoglo can be seen in Eden Park, Canterbury University, Vector Arena, Downtown Carpark, Christchurch Hospital, St James Theatre as well as many other educational and public facility buildings.
PETER ISSAC
06 340 8134 peter.isaac@xtra.co.nz
DAVID BURKE-KENNEDY 09 473 8635 dbk@compublicity.co.nz
t is sometimes difficult to make a case for good design or, rather, a good case for design without an image to explain. Humans gain well over 90% of their perception through their eyes and yet one needs to be trained in a particular way to step outside one’s constraints and see what others might never discover. This phenomenon has many names, such as ‘thinking outside the square’ or when objectively observed from a different angle our inability to ‘see the forest because of the trees’. That is the very reason why designers sometimes struggle to get the recognition they deserve. I have come across many a manufacturer who cannot see the benefit of using a designer. The purchase of a powerful computer and any particular design software ‘is all one needs to do design’ is quite a common misconception. Designbrand has been called upon by quite a few manufacturers to come to their aid because it was too difficult for them to achieve the desired result. We have recently developed a simple product for the calf rearing industry. The plastic product was existing and a stable seller in the manufacturer’s product line-up. The manufacturing mould was at the end of its service life and had not been designed with all product attributes in mind, therefore not providing the inherent benefits a moulded product can bring. Being a ‘trough type’ hollow product it is expensive to be stored or shipped and its manufactured finish was not as good as it should have been. At the same time we knew that the product was gaining success overseas and the issues needed to be well resolved from a logistics point of view. In order to maximise the benefits from our service, the client asked for assistance from the beginning of the project and not just to give development superficial aesthetics as a knee-jerk design token. It was decided very early on in
SANDRA LUKEY 021 2262 858
sandra@shinegroup.co.nz
By Jurgen Brand
the project to use the best pattern makers to produce the new mould and it was their constraints for manufacturing the mould from cast aluminium which made a decisive difference to the final aesthetics. The manual craft of finishing a mould form and surface is restricted by the tools used and the access the tool maker has been given by the design. If a designer ignores the toolmaker’s requirements, how can the designer hope to achieve a well resolved tool? As a master of his craft the pattern maker was able to pinpoint our work with his input by being fully included in the design process. The seemingly simple aspect of considering all stakeholders in the development of a product is often overlooked and it is the designer’s role to make sure that all aspects are covered. The original product worked well enough in the field and the user of the new product will only notice subtle changes in the next model. It is easier to handle and more accurate in its dosage but that the product has become much ‘greener’ will go un-noticed. The space previously occupied by four units now allows 14 pieces to be shipped. It will also fit neatly onto a Euro pallet and therefore is much more efficient in international shipping and storing. The new product is better performing, cheaper to handle and cleaner to make and will have a better turn-around time in the factory because of superior moulding performance.. Why wouldn’t you use a designer?
BRENT WHYTE
0061 2 9439 9329 bwhyte@whytepr.com.au
JULIE HANNAM
07 929 4970 julie@writewell.co.nz
NZ Manufacturer May 2012
DEVELOPMENTS
The purpose of a business is to create a customer. – Peter Drucker
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Improving your word’s worth in the workplace
ou may not realise it but a significant key to your business productivity and success is your workforce’s ability to be able to read, write, speak, listen, solve problems, and handle numbers. It’s quite likely you employ people for whom these skills are a challenge. According to a 1990’s international study 1 in 4 adult New Zealanders has a problem with literacy and numeracy. Insufficient education or learning disabilities such as dyslexia are often the reason. But increased immigration is also a factor - English is the second language for tens of thousands of new Kiwis. The result is that many are unable to use their skills and qualifications or even simply get a job. So we see immigrant doctors, scientists, engineers, production, processing and other qualified people pushing supermarket trolleys or driving cabs! But change is coming. Acknowledging international recognition of literacy’s importance to economic growth, the Government subsidises workplace and pre-employment training through various agencies – many of which are members of Literacy Aotearoa. In the Auckland North region, key provider Literacy North Shore, is launching partnerships with business to help sponsor individual students; initiate subsidised workplace training, or supply resources to assist with programmes.
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The benefits to industry are numerous, says LNS Manager Jane Rigby. Typically, literacy training helps workers improve their planning, organisation and computer skills. Students report increased confidence in completing job sheets, shift hand-over reports, form filling, letter writing and numeracy tasks such as reading and understanding graphs. Team participation and preparing business presentations are also areas of improvement. Ms Rigby cites company feedback about increased productivity and improved business processes. “Attendance rates and staff retention improve. Thereís a more positive workplace culture because people are more motivated when they understand instructions and goals,” she says. “That is reflected in better production quality and customer service.” Ms Rigby wants more manufacturers and others to support literacy work. Workplace programmes are generally government subsidised through the Tertiary Education Commission’s Workplace Literacy Fund. But some tutoring, initiated by individuals is not; hence the need for commercial sponsorship. “We’d like to see companies donating $350.00 to sponsor a student – or initiate a subsidised workplace training scheme,” she says. “The greater the commercial support, the more tutors we can train. That means we can help more people to improve their employment
opportunities.” Last year LNS tutored some 300 students. They ranged from immigrants to multi-generation New Zealanders of all age groups, ethnicities and occupational status. Some were unskilled; others trade qualified or business management experienced. Some were applying for jobs ranging from armed forces to administration, production to police. There were also employers wanting to improve their communication skills. Ms. Rigby says that many who completed workplace training voluntarily signed up for a Literacy North Shore community programme. “They were keen to continue their learning and reap the rewards of improved skills,” she says. “Students and employers say we’re the only training organisation of our type that takes a personal interest in studentsí achievements after a workplace programme has ended.” A programme is easy to initiate. A Workplace Coordinator discusses your business needs, workplace processes, and funding options. Diagnostic assessments are done prior to the start of a programme and regular progress reports keep employers updated. An incorporated not-forprofit society registered with the Charities Commission, the group is Government funded through various agencies, charitable and community trusts, businesses, workplace projects, and Work & Income NZ.
By David Burke-Kennedy
Broadcaster/journalist David BurkeKennedy recently became Chairman of Literacy North Shore after volunteering his media/marketing consultancy Communique Publicity’s services to help raise awareness of literacy and develop partnerships with business. www.dbk.geek.nz Companies such as publishers Harper Collins are long time supporters. Technology leader Toshiba this month supplied a state of the art computer-linked multifunction copier, fax and storage device, and is subsidising lap tops for training. There are other donors standing in the wings. Although North Shore based, LNS works in the greater Auckland area. The opportunities for businesses in all sectors to improve their effectiveness is huge, Jane Rigby points out.
Winning formula for export manufacturing
ot off the heels of their NZTE International Business Awards glory the previous night, where they took away the award for Best Use of Design in International Business (joint winners with Sistema Plastics), Dr Simon McDonald and his team were at Go Global to share their Secrets to International Success. What stands out from this company’s approach to business, and that of other success stories including Sistema, is how they put the customer at the heart of what they do. Triodent was chosen for the International Business Award because “it takes an energetic approach to continuous innovation, while never losing its focus to make dentists’ lives easier. Its remarkable success rests on an ability to identify a customer problem before others realise it exists, then designing something that is simple to use but
extremely difficult to copy.” Dr Simon McDonald says “Our products have to make our customers’ businesses better, fast and more profitable.” Those customers are dentists rather than consumers. With a dental consumable global market worth $13b,Triodent was wise to export from day one, using tricks to give the impression of being a large scale business even when they were starting out. For example, McDonald and his team found that by having a big booth at a trade shows they were perceived as being a big company. Triodent’s focus on the customer has resulted in it making product specification the most important part of the business. McDonald used the infamous words of Steve Jobs in saying that a product should be so god you want to lick it! “What is going to make your product or services totally
Dr. Simon McDonald
fantastic?” he asked. By running the business as a series of small experiments that won’t risk the business, Triodent produces market leading, high-value dental products that are easy to ship from NZ and even look sexy. Triodent facts at a glance: • Business principles: Simple Innovative - Smart - Nimble Entrepreneurial. • 20% of staff on product development.
• 99% of sales are exported. • Exported from day one. • Insanely good product specifications – the most important part of the business. • Principles of design: less is more, subtract until it breaks, every detail must have a purpose. • 80:20:20 rule – Get 80% of the product finished, 20% of the time and 20% of the cost. • Management by experiment (that won’t risk the business). www.nzmanufacturer.co.nz
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NZ Manufacturer May 2012
DEVELOPMENTS
Do what you do so well that they will want to see it again and bring their friends.
– Walt Disney
Innovative plastic production plant to increase productivity
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pecialist custom plastic fabricators, Plastec Formers Ltd, recently engaged JIPL to design a machine to increase their processing capability for one of their key contract production products. Plastec have been manufacturing ‘Shower domes’ for a number of years. They wanted to be able to increase their production rate whilst ensuring high-precision quality, and they were keen to investigate options in terms of heating and processing methods for manufacturing the large 1,200 x 1,200 Perspex sheets used in the process. With the assistance of a Tech-NZ grant, JIPL was able to undertake investigative testing of heating methods. Their research found that by using special Infra Red (IR) heating elements in an innovative way, high heat transfer rates could be achieved to match the production speeds required by Plastec. From there, JIPL went on to design the entire Shower dome forming plant which has now been installed and is in operation at Plastec’s Tauranga factory. The Plant is designed to produce six varying shapes of shower domes using a specially-designed power press which activates an air blow system to form the dome. The press has been designed with a rotating inner frame allowing two similar or differing, upper formers to be attached. The plant has a moveable carriage on either side of the centrally located press on which the various matching bottom formers are attached. The JIPL designed plant, thus allows for two different dome shapes to be produced on the same plant, under continuous production conditions – which is the first of its kind in the world. A plastic sheet is manually loaded onto a dedicated former fixed to a movable carriage which is then sent into the Infra-red electrical heating unit. Once heated, the hot plastic sheet
is moved directly to the press to reduce heat loss prior to pressing. Due to the precision required in the manufacturing of the domes, the positioning of the formers needed to be accurate to ± 0.2 mm in all three dimensions, so a number of complex sensing systems were incorporated into the design. The carriage is positioned precisely under the press unit using a timing belt and positioning rams; and special sensors within the press frame determine the pressure of the compressed air, to achieve an accurate and consistent dome height. A high efficiency cooling system cools the dome sufficiently to maintain its shape, and then the dome is released, with the press rising to its fully up position. The formed dome is then automatically moved to the offload area. The forming plant is automated from the point of on and off-load, with a PLC-based control system. The plant has been designed on a failto-safety basis, with integral light curtains and includes numerous monitoring functions and real-time data on the Colour Touch Screen. The plant has allowed Plastec to increase their production capability in excess of 300%. Plastec have been very happy with the consistency of the product produced. The ability to produce at high capability has also taken a lot of pressure off the business. Focusing on quality engineering drawn from many years of experience, JIPL take pride in their ability to cross transfer technologies and ideas, and to provide innovative, practical and effective engineering solutions. Jonassen Industrial Projects Limited, established in 1986, is a team of Process and Environmental Engineers, operating in the South Pacific region. They hold an established reputation for providing design assistance, system specification and equipment supply within
E: chris@jipl.co.nz www.jipl.co.nz www.nzmanufacturer.co.nz
the Process Automation, Water/ Wastewater Treatment and Solids Extraction/Filtration Industries. JIPL also have experience in mechanical handling systems, including standard and ‘power and free’ overhead or floor mounted conveyors, and compaction/solid waste handling units. JIPL imports specific plant and equipment from world industry
leaders, such as Monsal and Invent, and continues to search out leaders in specialist technologies. JIPL has several technology transfer agreements with offshore companies for designs and technologies to suit special local industry needs. nextSTEP Phone Chris or John at JIPL, Tel: 09 479 3952 or email: chris@jipl.co.nz
RCR awarded turnkey energy contract
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ntegrated engineering company RCR Tomlinson Ltd has been awarded a turnkey contract to provide a process steam boiler plant for Fonterra’s Drier 2 Project in Darfield, New Zealand. Fonterra is the world’s leading exporter of dairy products and the largest diversified milk processing company. The Drier 2 Project is the second stage of expansion at Fonterra’s newest processing site near Christchurch, and this boiler will feed steam to what will be the largest milk powder drier in the world. The contract is valued at approximately $20 million, and includes the design, manufacture, installation and commissioning of a 45MWth (approx 65 tonne per
hour) coal-fired steam boiler and associated equipment. Work will commence immediately and is scheduled for completion in the third quarter of 2013. RCR’s Managing Director Paul Dalgleish said that this contract, the latest in a series of successful energy projects for Fonterra, represents the continuation of our excellent relationship. “This project, in addition to our recent Yarnima project, continues to build the RCR Energy business following our AE&E acquisition last year. We are starting to build momentum in the project revenue side of the Energy business which should translate to stronger margins”, said Dr Dalgleish.
NZ Manufacturer May 2012
CANTERBURY
To get to the top actually, you must first get to the top mentally. – Chris Widener
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“Our strength is in the quality of product”
ne of the Southern Hemisphere’s largest CNC machining centres, the 36 station linear pallet automated horizontal machining centre, is owned by Christchurch specialised machining company Integrated Hydraulics. The machine will produce hi-spec hydraulic manifolds and a wide range of other precision machined components. To support this investment the company has also commissioned a next-generation TEM thermal deburring machine and DURR Ecoclean universal cleaning machine. Apart from a significant lift in manufacturing capacity, Integrated Hydraulics General Manager, Nick Lawry, says the new technology will help the company manage highly variable workloads through an unpredictable global economic climate. “The new machines will allow us to rapidly scale either up or down, without affecting our staff levels,” he said. “With a 36 station loading capacity and true ‘lights out’ automation we now have the ability
to expand production instantly to meet any order – big or small. We can easily ramp-up production when required, and quickly prove customised ‘one-offs’, without having to find extra skilled staff and, similarly, we can scale production back down, without affecting staff levels. This allows us to retain a long-serving and highly experienced team at all times.” The revolutionary TEM deburring machine uses a thermal chemical process to remove burrs that develop during the machining process. Components are placed in a pressure chamber, which is then filled with a gas mixture and ignited. Temperatures between 2500°C and 3000°C burn off the burr. “In the past deburring was a highly intensive manual process that would tie up skilled staff and slow production,” said Nick Lawry. “This would significantly affect our ability
The new machines will allow us to rapidly scale either up or down.
to meet larger orders within tight timeframes. “The automated cleaning process using the TEM machine in conjunction with the DURR Ecoclean technology will ensure larger and rapidly delivered orders can now enjoy the high levels of QC detail normally only available using long inspection process and high staff numbers.” Nick Lawry says the company is experiencing very strong growth, after a difficult year in Christchurch and patchy times during the recent recession. The strongly performing Australian mining industry is leading the way, with Integrated Hydraulics providing manifolds for industry giants such as Bosch Rexroth Australia. The company is also exporting to Singapore, Malaysia and Indonesia. “Our strength is in the quality of the product that we produce and our strong engineering and design resource,” says Nick Lawry. “There are companies throughout Asia that can produce large numbers of manifolds fast. But that often comes with a compromise in quality,
consistency and design efficiency. ‘We have deliberately focused on acquiring top-of-the-line CNC machining gear, state-of-theart design software and highly skilled staff. This combination means our products are very well engineered and highly regarded in the marketplace - this is our point of difference.” In New Zealand Integrated Hydraulics produce hydraulic manifolds for the transport, marine, forestry and mining industries, a wide range of precision components and assemblies for a number of hitech New Zealand exporters, and an extensive range of high and low volume custom items for specialised manufacturers.
www.ashburtonbusinessestate.co.nz gary.seear@colliers.com
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NZ Manufacturer May 2012
ANALYSIS
F
Leadership is doing what is right when no one is watching.
– George Van Valkenburg
Industrial machine vision expand
ollowing many years of success in the two-dimensional area, industrial machine vision has expanded its world by one more dimension. 3D machine vision is increasingly required at the important automation drivers of the automobile industry, semiconductor production and robotics. A robot that sees threedimensionally can interact with its environment more flexibly than it would be possible with a twodimensional one, and the volume of ball-grid arrays on circuit boards or biscuits as well as other foodstuffs can only be determined with 3D data. Detecting persons also functions best three-dimensionally. Many additional, new application possibilities are connected with the use of 3D systems, and consequently suppliers of industrial machine vision expect further increases in growth. Patrick Schwarzkopf, head of the VDMA specialist department Machine Vision, has been observing the development in his industry and especially events in the 3D sector very closely. “In the component sector, for example with cameras, we are seeing increasingly smaller designs with higher resolutions and less energy consumption.” He also sees a change in the area of lighting: “It is still strongly in the range of visible light, but many new applications already use the ultraviolet or infrared spectrum. As a result, machine vision systems
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can work reliably unobstructed by ambient light.”
Sensors for inline measurement engineering
The automobile industry is an essential driver of innovation in machine vision. It often requires precise 3D measurements – integrated in the process in many cases – because it is a matter of interlinking new and complex process chains optimally with each other in the production of high quality vehicles. Today, modern, highly precise 3D in-line measurement engineering enables fast, process-optimised performance of very different measurement tasks directly in the process on vehicle body shells. The advantage: The recorded measurement data can be used directly in production for optimising quality. Such in-line implementation in such a complex environment represents more or less the elite class of machine vision. A machine vision partner is required for this, who has a lot of experience and can provide an intelligent tool kit composed of in-line measurement engineering and in-process analysis software. Innovative 3D measurement systems suitable for automating production must be compact, so that they can even be used at difficultto-access spots and be integrated in very cramped spaces. In addition, substantial measurement accuracy and a very short measurement
cycle are often required, so that the sensors can also be used for highspeed applications.
Easy to install and operate
Regardless of whether highly complex in-line measurement tasks or simpler external surface detection, ease of operation and fast integration into the process environment are important success factors that can smooth the way into everyday automation. This also applies to 3D scanners.
They should not only act as simple image recorders or profile generators today, but provide more. Consequently, suppliers are starting to integrate specially developed methods into 3D cameras, which provide an optimum of scan rate and image quality. For example, pre-processing modules implemented in hardware can reduce data volumes, taking the load off the evaluation PC. Special software helps setting up and parameterising the processes in cameras and supports users in
NZ Manufacturer May 2012
Entrepreneurs need to take pride in their mistakes, because otherwise it’s impossible to succeed. – Twitter co-founder Biz Stone
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ANALYSIS
ding to become three-dimensional integrating them into the respective process. Application programming interfaces (API) simplify integration into the user world, and integration in various machine vision libraries simplifies operation.
Structured-light 3D scanners for mobile applications
Especially robust structuredlight 3D scanners exist for larger components which can be adapted to customary robot systems. Among other things, the systems offered differ in their respective projection technologies, which are also responsible for the measuring speed. The faster, the better: then you not only save time in recording data, but there is less influence from vibrations with increasing measuring speed.
Structured-light 3D scanning is already a common optical method to obtain depth information about an object. To this end, various patterns composed of illuminated and unilluminated stripes are projected one after another on an object and recorded by a camera. Using triangulation, it is possible to calculate depth information and reconstruct the object spatially. The trend here is to small, portable devices that are extremely precise, but still inexpensive and easy to operate. Ideally, the projection lens can be changed fast and easily and adapted to the required measurement field according to needs in a few minutes. Such systems pave the way for new applications, especially in mobile 3D digitalisation of filigree components of smaller to medium sizes.
Until recently, it was necessary to supply the components required for production unsorted in assembly technology. Production plants could only ensure reliable and unique supply in production processes when they did extra mechanical or manual work, which is very expensive. New 3D sensor technology equipped with two standard cameras and special laser lighting makes precise determination of the position of unsorted components possible in all depth levels of containers. Thanks to the capability of threedimensional seeing and precise position determination of unsorted
ommercialisation professionals from around the country met at a one day forum earlier this month focusing on market-led technology transfer. The forum organised by the Kiwi Innovation Network (KiwiNet) was one of a number of initiatives designed to boost outcomes from research and increase the impact of New Zealand’s investment in research and innovation. “Research based organisations generate a wealth of discoveries, but New Zealand only benefits when these discoveries are utilised by industry. There are a wide range of mechanisms for making this transfer happen including licensing to New Zealand companies and the establishment of start-ups,” says David Hughes, Group General Manager Commercial, Plant & Food Research, a KiwiNet member. “The forum was a really valuable
opportunity to share that hard won knowledge between research organisations and build networks to lift our national performance at technology commercialisation level.” The commercialisation forum began with a session from Regena Mitchell from Mitchell Boock Associates on engaging researchers with industry. Professor Alison Stewart, Distinguished Professor of Plant Pathology, Lincoln University, shared a researcher’s perspective on engaging with industry. Anthony Francis from Flinders Partners followed with a session on Open Innovation in practice. Kate Wilson from James & Wells Intellectual Property lead the afternoon sessions with an IP strategy session and Duncan Ledwith from Uniservices and the IceHouse closed with a workshop on market validation.
The future is within grasp
objects in all levels, highly flexible removal of unsorted components is possible. Production plants save considerable costs and production time with this solution. At the same time, production flexibility increases significantly.
A comparably new 3D measurement procedure is the optical time-of-flight (ToF) technology, which competes with previous sensor technologies such as radar and ultrasound or serving as a supplement to them. Above all, three methods are
already being used in sensors and customer applications: the Continuous Wave (CW) method and the direct and indirect pulse methods. While the CW method is based on determining the phase shift of sent and received waves, the direct pulse method uses the time measured between the sent and received pulse. In indirect time-of-flight measurements, a single light pulse is shot at the object to be detected, and the returning pulse is measured via two differently long integration windows. In another measurement, the background is detected and eliminated “on chip”, which protects use in unfavourable light conditions. The ToF methods are inexpensive, easy to integrate and can be used in many applications.
Founding KiwiNet members include WaikatoLink, Plant & Food Research, Otago Innovation Ltd, Lincoln University, AUT Enterprises, AgResearch, University of Canterbury, Industrial Research Ltd and Viclink. Support is also provided by the Ministry of Science and Innovation. The KiwiNet commercialisation forum, supported by James and Wells and the Ministry of Science and Innovation was open to commercialisation staff from all
universities, Crown Research Institutes, incubators and other similar organisations and others with an interest in open innovation and market-led technology transfer. An associated event, The KiwiNet Investor Engagement workshop, was held the following day, to increase engagement between investors and research organisations. The event included a pitching workshop and participants had the opportunity to present to investors.
Meaningful supplement to radar and ultrasound
Commercialisation forum focuses on market-led technology transfer C
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NZ Manufacturer May 2012
WORKSHOP TOOLS
The big shots are only the little shots who keep shooting.
– Christopher Morley
Wairarapa manufacturer first to exploit German technology
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n a New Zealand first, Wairarapa manufacturer Cameron Shaw is injecting modern German technology into a traditional exterior joinery business, after a 14 year search for the perfect machine. When Cameron brought Renall Doors out of receivership nearly 20 years ago, while he was impressed that the technology had not changed for hundreds of years, he also realised that to take the business forward, it needed to change. “The first thing we did was buy a computer and digitise all of our products,” says Cameron. I selected some really clever people to work for me who understood how to connect Excel spreadsheets into number crunching for componentry. “A door is the perfect product for this because it’s only a selection of pieces of wood of critical dimensions. Excel is the perfect tool for crunching those numbers. “The next thing we did was go hunting for a machine that would read that software. That was 14 years ago. “We first came across the technology in 2005 during a trip to Europe. That’s when we seriously started thinking about how we could buy it, manufacture all of our existing products on it and also start producing European style doubleglazed wooden windows – which we had always thought we should
get into. “It’s very sophisticated software – all we need to do is select the window or door that we want to make, in terms of the hole that it’s got to fit into, and press “Go”. The software will calculate all the critical dimensions of not only the door or window, but the frame that goes around it, and the glass. We can then connect this to a saw that will cut the timber and barcode it so the machine can read each piece of wood.” The unique quality of this machine is that it is made specifically for the window and door components. No other machine is as sophisticated and dedicated to the task, and that’s what’s giving Renall Doors a huge efficiency boost and competitive edge. “We’re introducing a product that has never been attempted before in New Zealand,” says Cameron.” You have to import it from Europe or the USA, and it’s not cheap. The whole package here on the ground and running is about $1.5m – that’s the machine, tooling and saw that goes with it.” It’s a big leap of faith for a small business, but customers are already lining up and Renall Doors is surprised at the support it has already received. After telling architects for years that this technology is coming, Cameron and his team had housing
Cameron Shaw and machine.
projects lined up with half a dozen parties before the new machine even started production. Both home owners and architects are seeking out this technology, and of course it is ideal for creating bespoke products – a trend we are seeing right across the board in manufacturing.
For example some Americans developing a lodge in Glenorchy were expecting to have to import products from the States. Now a Kiwi company is meeting the market demand. What’s next? Well this product is not offered in Australia yet either, so watch this space.
Five-axis machining programmed with FeatureCAM proves successful
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move to five-axis machining programmed with FeatureCAM has resulted in dramatic productivity and quality improvements at WeCan, a Hastings company focused on the manufacture of precision components. Founded in 1971, WeCan has gone from strength to strength and is now regarded as one of New Zealand’s premier manufacturers. The business focuses on the manufacture of precision components, critical engineering spares, and complex engineering parts and assemblies in the food and meat processing industries. Canning and packaging equipment is a major part of the business, with the local subsidiary of global food giant Heinz being an important customer. However, the company also works with R & D teams on prototyping and lowvolume manufacturing. With WeCan’s continuing success came a need for expansion. Company directors, Rickie Pike and Ian Jamieson, realised that a move www.nzmanufacturer.co.nz
into five-axis machining would soon be required to increase output and productivity. In the past, they had encountered problems when integrating another CNC machine into the business. These problems stemmed primarily from having independent suppliers of machine, cutting tools and CAM system, and the difficulty of coordinating them in a way that provided an acceptable time frame from order to operation. An extensive review of fiveaxis machine tools resulted in the selection of a Spinner U620 with Siemens 820D controller. However, before WeCan would place the order for the machine, Spinner NZ had to undertake to provide a total package including machine tool, cutting tools and CAM system. Spinner NZ formed a partnership with Iscar Tools and Delcam sales partner Camplex to meet the challenge. “We wanted to ensure that everything was taken care of when we bought this total package,” recalled Mr. Jamieson. “We wanted to be sure that the machine would
perform efficiently from the day it was commissioned.” He was not disappointed. Training of WeCan staff on the machine and with FeatureCAM was completed prior to the machine installation. In addition, a customised tool database was created within FeatureCAM with details of the Iscar tooling. “We were straight into the five-axis operation in the first few days, which was exactly what we wanted,” claimed Mr. Jamieson. Mr. Pike also endorsed FeatureCAM enthusiastically. “Our previous CAM package had never had the tool library set up except in a haphasard way and we were not getting the productivity that we needed,” . “Now, that has all changed and productivity has increased. In the first two weeks of having the new machine, we ran six
jobs in one or two operations that would have required six or seven setups previously. As a result, we were able to run all these jobs within three days of machine time rather than around two weeks, and without the errors inherent in multiple set-ups” Since the success with FeatureCAM five-axis, WeCan has invested in an On-Machine Verification quality-assurance system for the Spinner U620 and FeatureCAM’s TurnMill software for its Okuma Multus multi-tasking machine.
NZ Manufacturer May 2012
29
WORKSHOP TOOLS
To open a shop is easy, to keep it open is an art. – Chinese Proverb
Contactor selection now easier New dimensions of scalability with Integrated Architecture
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electing contactors and overloads for three phase electric motors is made easy with the Contactor Select App. By simply selecting the motor voltage and kW, the Contactor Select App will display the motor FLC (Amps) and suggest which contactor and overload to use. The Contactor Select App selects from the premier Sprecher + Schuh brand, with contactor and overload selection made easy by providing you with the exact product number
and product photo of the contactor or overload you need. Useful for designers and electricians as a handy pocket reference tool, the Contactor Select App calculates full load current of three phase motors and allows correct product selection and overload settings to be made. While it is now available on the iTunes App Store and on Android devices, it is also available in a web friendly version. So if you don’t have an iPhone or Android phone, you don’t miss out!
ompactLogi programmable automation controllers (PACs) are designed to meet the growing need for a higher performance controller in a compact and affordable package. As part of the Integrated Architecture system, the controllers use the same programming software, network protocol and information capabilities as all Logix controllers, providing a common development environment for control disciplines. Cost-saving features of these controllers include support for Integrated Motion on EtherNet/ IP; Device Level Ring network topologies; built-in energy storage that removes the need for lithium batteries; reuse of existing 1769 I/O; and kinematics that removes the need for additional robot controllers and software. In addition, the new family features a removable one GB secure digital card that improves data integrity and flexible memory options up to 3 MB. The ‘No Stored Energy’ (NSE) version of the
family offers additional features for hazardous environments found in industries such as mining and oil and gas. Other capabilities include, ‘open socket’ support for Modbus TCP as well as devices such as printers, barcode readers and servers. The PACs deliver affordable control suited to applications ranging from small, stand-alone equipment to high-performance indexing tables, process skids, case packers and erectors, and packaging.
Email: sales@sew-eurodrive.co.nz • Web: www.nz.sew-eurodrive.com www.nzmanufacturer.co.nz
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NZ Manufacturer May 2012
BUSINESS NEWS
Success doesn’t come to you, you go to it. – Marva Collins
Do optimism figures herald true or false dawn?
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hile recent research both in New Zealand and globally points to rising business optimism, Grant Thornton New Zealand partner, Greg Thompson, looks at the strength of this confidence and wonders if in fact it is not just another “false dawn.” According to the latest research from the International Business Report (IBR), a quarterly survey of 3,000 businesses in 40 countries, business confidence in New Zealand rose from 36% to 45% in the last quarter compared with the last quarter of 2011 while overseas the
lift was even stronger with business optimism in the G7 countries rising by 28 percentage points from -12% in Q4-2011 to 16% in Q1-2012. “The increase in optimism in the United States – where it increased by 45 percentage points, from just 1% in Q4-2011 to 46% in Q1-2012 – is a major plus. Meanwhile, businesses in Japan (-53%) and Europe (-4%) remain pessimistic, but both have seen improvements over the last quarter. “However, looking back results over the past 12 months tell a more sobering story. New Zealand’s optimism figures
MyBiz in October
TVNZ and XPO Exhibitions have partnered in a major new national business event for small and medium enterprises. MyBiz Expo runs from 14-16 October 2012 at Auckland’s ASB Showgrounds in Greenlane. Entry is free to registered business owners, managers and representatives. “It is designed to give the country’s SMEs a platform to compare their current business service supplier and learn about new business tools for success,” says XPO Exhibitions Director Brent Spillane. Many business service segments will exhibit including, but not limited to, leading power companies, telcos, banks, freight and print industry companies – all looking to reach the thousands of SME owners and managers comparing suppliers or looking at additional products/services that may help grow their business.
“At MyBiz Expo you can bring in a pile of your bills and compare the offerings of different providers to make your bills smaller and your business bigger – on the spot,” says Brent Spillane. “There will also be a valuable programme of business seminars and networking opportunities.” “The event will attract thousands of business owners. Commitment to exhibit has already been made across leading telcos, power companies, insurers, e-commerce and IT companies who will exhibit their wares and demonstrate what they offer business owners.” Brent Spillane says that while SMEs can use the event for price checking there’s far more to it than that. “MyBiz Expo will also inform and educate on new product offerings like new high speed broadband. nextSTEP Visit: www.mybizexpo.co.nz
are almost identical to this time last year, 45% compared with 44%, yet is the country better off than this time last year? “When you look at Government and the fiscal drag of the Christchurch rebuild, you would have to say no. “The much promised stimulus coming from that rebuild seems to move further away with each day. What was hoped to start in earnest in the last quarter of 2011 is now being pushed out as far as the third quarter of 2013 by some observers. “And while experts, including most recently the International Monetary Fund, are saying that the New Zealand dollar is overvalued up to 20%, it has remained at these levels for such a long time that some are wondering if it will ever retreat to more export-friendly levels,” he said. Thompson said that he did not want to sound overly pessimistic, more realistic when considering the macro economic factors that influence the New Zealand economy. “These factors are different to the emotional triggers that affect confidence levels. “While Europe and its debt problems will be on-going for some time, the economic recovery in the United States, borne out by brighter GDP and employment data, seems to have really gained momentum in the last quarter. “There is also good news in the New Zealand figures. Access to, and the cost of, finance appears much less
Greg Thompson, wonders if in fact it is not just another “false dawn.”
Greg Thompson
of a problem that it did three months ago with the cost of finance less of a concern (-12%), a shortage of capital (-2%) and a shortage of long-term finance (-12%) all showing positive signs. “Battling with red tape remains a problem with an increase of 4% in the number of businesses citing it as an inhibiting factor. “The other good news is on the wages front with 22% of employers expecting to give a pay rise above inflation, 51% in line with inflation and 24% no pay rise at all. The other good news is that no employer is contemplating reducing wages. “Business behaviours currently do not reflect the likelihood of a positive improvement in the outlook for the New Zealand economy, but at least with a confidence that things will improve, business is poised to take advantage of any opportunities which may come their way,” Greg Thompson said.
PARTICIPATING COMPANIES IN THIS ISSUE … ACS Design………………………………………… acsdesign@maxnet.co.nz Acton Tools………………………………………… www.actontools.co.nz AEC Systems……………………………………… www.aecsystems.com.au Ashburton Business Estate……………………… www.ashburtonbusinessestate.co.nz ATEED……………………………………………… Bessie.Nicholls@aucklandnz.com Baskerville………………………………………… www.baskiville.com EECA………………………………………………… www.eecabusiness.govt.nz EMEX 2012………………………………………… www.emex.co.nz Flight Structures Ltd……………………………… www.flightstructures.co.nz Gallagher…………………………………………… www.gallagher.co.nz HERA………………………………………………… www.hera.org.nz Hi-Q Components………………………………… www.hiq.co.nz Homersham’s……………………………………… www.permabond.com Jonassen Industrial Projects Ltd……………… www.jipl.co.nz www.nzmanufacturer.co.nz
Konecranes………………………………………… www.konecranes.com.au Manufacturers Success Connection…………… www.manufacturerssuccessconnection.com MyBiz………………………………………………… www.mybizexpo.co.nz NZECO……………………………………………… www.nzeco.govt.nz NZGBA……………………………………………… www.germantrade.co.nz NZTE………………………………………………… www.nzte.govt.nz Opportunity Hamilton…………………………… www.opportunityhamilton.co.nz Replika……………………………………………… www.replika.co.nz SEW-Eurodrive…………………………………… www.nz.sew-eurodrive.com SolidTec …………………………………………… www.solidtec.co.nz Staples Rodway ………………………………… www.staplesrodway.com Success Through Innovation…………………… www.nzmanufacturer.co.nz Techspan…………………………………………… www.techspanonline.com Tilt Manufacturing……………………………… www.tilt.co.nz
NZ Manufacturer May 2012
For your social media marketing plan to succeed, it’s crucial that you consistently interact online; even if it’s just 10 minutes a day. If you can’t put in the time, it’s best not to start. – Pamela Springer
T
The end of cheap China
he April 25th issue of the Economist Publishers Newsletter had a feature article with the heading “The End of Cheap China”. The article starts with the following introduction: “Travel by ferry from Hong Kong to Shenzhen, in one of the regions that makes China the workshop of the world, and an enormous billboard greets you: Time is Money, Efficiency is Life.” The article notes “that China is the world’s largest manufacturing power and now accounts for a fifth of global manufacturing. Its factories have made so much, so cheaply that they have curbed inflation in many of its trading partners. But the era of cheap China may be drawing to a close.” It describes several examples of annual labour cost increases and all were in the two digit range for the last few years. It goes on to say, “If cheap China is fading, what will replace it? Will factories shift to poorer countries with cheaper labour? That is the conventional wisdom, but it is wrong.” The article discusses at length the Chinese transformation options and believes that for reasons such as existing infrastructure and market, sophistication and security of supplies, overseas manufacturing will largely remain in China and not move to countries with lower labour cost. However, the significant point of difference will be that China will succeed because this will be combined with considerable productivity gains and innovation driven by strong government leadership and the increasingly better-educated Chinese workforce Closer to home, we have a debate regarding whether New Zealand is to Australia, what Mexico is to the
USA; a supply of cheap labour. The argument on the positive side is that we remain competitive to Australia, and increasingly, Australian companies move their factories to New Zealand. On the negative side, we lose skilled labour to a better paying Australia, or equally negative that we lose out in the hotly-debated living standard race. Some economic researchers are arguing we need to measure happiness into the living standard equation in a similar way to Bhutan’s ‘Happiness Index’, so that we can justify being the lower earning cousins of the developed world. This will, of course, work all right if Kiwis are indeed happier, but it’s hard to see how this will be the case if they have insufficient income to pay the bills. In my view, New Zealand cannot rely on the happiness factor to win the living standard race but rather, we have to follow the Chinese Motto
that “efficiency is life”. The news that the Chinese living standard is going up and with it, its labour cost, is in my view a positive indicator. To wait and see what happens as a result of those labour cost increases is not enough, we need to be as focused on efficiency gains as our competitors and we need to ensure that our industry’s chances to compete are on a fair and equal trade basis. A fair and equal trade basis does not necessarily mean our industry has to have the exact same conditions and support measures as our competitors, but it certainly means that in the end the conditions provided by our government to do business in New Zealand have to be at least as supportive to grow business, including exports, as those found overseas. HERA has put a position paper on public policy issues together with the main aim to highlight opportunities to increase our
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REAR VIEW
Commentary by Heavy Engineering Research Association (HERA) Director
Dr Wolfgang Scholz
industry’s competitiveness. HERA is continuously conveying these position issues to government and opinion formers.
Email: permabond@homershams.co.nz
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NZ Manufacturer May 2012
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