THE CIRCULAR ECONOMY
Dial back on social media.
Innovate or die.
Round and round into the future.
Why a highly-skilled workforce is critical for success Ensuring staff have the right skills now and in the future is vital for the sustainability, productivity and global competitiveness of New Zealand’s manufacturing industry. Fiona Kingsford, chief executive of industry training organisation Competenz, says industrial changes, innovations and automation are changing the number and types of jobs in New Zealand and, more critically, the sort of knowledge and skills people in the industry need to develop. “We know that unqualified and low-skilled positions are predicted to have the highest probability of replacement by computerisation or machines. It’s challenging to keep up with the changes, let alone anticipate the workforce requirements to respond. “While employers may not be able to protect jobs from automation, we can collectively be responsible for protecting our people and preparing them for change through ongoing training and reskilling.”
If you don’t invest in your people, it’s a lost opportunity. It had never been so obvious before. Data from economic research organisation Infometrics shows the manufacturing sector will need to find more than 12,000 people by 2022 to predominantly replace workers who retire or leave. Approximately half of the workforce has no post-school qualification. Training and education are essential for responding to rapidly advancing technology, succession planning and ongoing profitability and competitive advantage. “Through our ongoing dialogue with businesses, there is concern within the manufacturing sector about the lack of team leaders and tradespeople who possess managerial skills,” Kingsford says. “This is highly-relevant to workforce development as research consistently highlights that there is a link between quality of management and the productivity of the business.” Competenz works with more than 3,500 companies
around New Zealand and more than 26,000 trainees and apprentices – more than 4,000 of those in the manufacturing sector. “Working with so many manufacturing firms we gain
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Workforce development pays off for DB Breweries When Melissa Muirhead visited a new high-tech brewery overseas she was astounded by the set-up. “The company had started with a blank sheet of paper and a lot of money, so they were able to design the most efficient brew house and packaging line possible.” It was a different environment to DB Breweries, where Melissa is the Talent and Organisational Development Manager. “Our Waitemata brewery started out in the 1930s as a small wooden building and expanded over time. It’s a bit like spaghetti junction with all the conveyer belts everywhere.” But the latest equipment alone did not equal performance – Melissa learned the Waitemata brewery was nearly three times more productive. Why? Because of people. “If you lose up to half your staff every year, you’re going to spend all your time and money training people how to do the basics. Turnover at our Waitemata site is far below average and we develop our people to take their skills to the
next level.” DB Breweries works with Competenz to deliver apprenticeships and training in food and beverage processing, health and safety, manufacturing and sales. “I’ve always said it’s great to have equipment and machines and technology, but if you don’t invest in your people, it’s a lost opportunity. It had never been so obvious before.”
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Analytics leaders wrestle with AI challenges for 2018.
Engineering firm takes mentoring to another level.
Is there a standard for smart manufacturing?
Waiting for smart manufacturing standards to develop before implementing the Industrial Internet of Things into your operations may not be the most productive choice. By Dave Vasko, director of Advanced Technology, Rockwell Automation Smart manufacturing is called different things in different countries: Manufacturing USA (United States), Industrie 4.0 (Germany), China 2025 (China) or Industrie du Futur (France). The U.K., Sweden, Japan, Korea and India all have country-specific efforts as well. What do these initiatives have in common? They are all: • Creating a vision for smart manufacturing. • Using the power of digitalization to help manufacturers reduce capital expenditures, improve time to market, reduce inventory and improve productivity. • Extending existing standards to realize the vision. The last point is an important distinction: These initiatives are not creating new standards — they are classifying how best to use existing standards. That means the groundwork for smart manufacturing, Industrie 4.0 and other initiatives is being done in standard developing organizations such as the IEC, ISO, ISA, IEEE and the OPC Foundation. These organizations are where the influence starts and leadership takes hold.
Trade cess / s rt SucThis is particularly important as thought leaders prepare terview / Expo is for In s / ie the g G20 (or Group of Twenty) in D lys August. This olo / 3Economy tDigital eninternational Techn ofiles / Ana elo forum for governments from m e p v ti p cs Pr Dev 20 major/ economies isru Robotiis host to high-level discussions of mpany / Regional t ing / D o r n C le tu r / c a e ufa 018 &T Cyb ity MEX 2 Skills IIoT / rt Man ductiv r Sma Reports – E cture / Pro Economy / struction / ials fo r on la tru C s u a / c Mater eviews and fr ir e C In anc Pr / The ing / ainten ution Show factur ate Change tive M ib Manu m reventa tics & Distr P / / Food turing / Cli g is turin / Log fac anufac ufacturing Manu M r an n fo / Desig / Additive M y Securit
policy issues pertaining to, among other things, global economic growth. On the agenda is digital technology. Countries and companies around the world are eager to adopt digitalization strategies because it levels the playing field for smaller companies, allowing them to reap the same benefits as larger firms, and remain globally competitive and relevant.
Industry is slow to adapt to new technologies, mostly because replacing existing assets with new, smart manufacturing versions can be complex and take time. The transition should take place in phases.
This means if you look only at one countr initiative, you’ll have a limited view of t global movement. You must look at glob standards to understand global impact.
So rather than the name of the initiative th differentiates the work, it’s the standar behind that initiative that make the differenc
The Time to Start Is Now
For organizations hesitant to start their journe
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STORY 1 LEAD Why a highly-skilled workforce is critical for success. NEWS 5 BUSINESS Dial back on social media. TECHNOLOGY 6 MANUFACTURING Design ScanArm 2.0 improves product design
ADVISORS Craig Carlyle
workflow. B2B E Commerce – More than just a Revenue Driver.
2018 UPDATE 9 EMEX Latest development on 3D printing Materials
Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.
The Manufacturers’ Network at EMEX.
PROFILE 11 COMPANY Innovate or Die. CIRCULAR ECONOMY 12 THE Round and round into the future.
Moving from waste management to material optimisation.
2018 15 EMEX The biggest in decades. 16 ANALYSIS Machine learning and Big Data offer massive
Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, NewZealand’s largest business advocacy group, representing businesses of all sizes.
PRODUCTS 17 NEW Low-height skidding system moves heavy loads in the tightest of spaces. Simplest valve actuators provide automation and production efficiency.
Chief Executive, New Zealand Manufacturers and Exporters Association has a Ph.D. in plant biotechnology, consulting and senior management roles in R&D, innovation and international business development.
MAINTENANCE 18 PREDICTIVE Spend a little to save a lot. MANUFACTURING 19 SMART Industrial Software Platform delivers maximum return. Innovation hub to fast-track Industry 4.0. HMI software features improved operator efficiency. Leapfrog Works brings 3D to civil engineering. Cup holder charges phone wirelessly.
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.
MAINTENANCE 23 PREVENTATIVE Corrosion impact on bridge infrastructure. MANUFACTURING 24 FOOD Environment and agriculture can both benefit from trade agreement. Lincoln part of Australian horticultural innovation. Food production system ‘unsustainable’. New $13m infant formula can facility in Christchurch.
26 DEVELOPMENTS Compressed air expert lays foundation for future
growth. Exceptional cooling to ensure best welding results. Manufacturing shows solid growth to end 2017. Gough Group appoints new CEO. Provincial growth fund can boost regional performance.
28 ROBOTICS We should learn to work with robots. CHAIN 29 SUPPLY How to hire during the supply chain talent
Dr Troy Coyle
Is HERA Director, she has extensive experience in innovation, research management and product development, most recently as Head of Innovation and Product
30 ANALYSIS AI challenges in 2018. VIEW 31 REAR Gender diversity.
There’s a big trade fair coming soon…
In a bit over a month, EMEX 2018 will take place at ASB Showgrounds, Auckland.
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And it’s a big deal!
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It’s a big deal because of the state of the nation’s productivity. We are sitting consistently over 50 but somehow, we need to ‘climb’ a bit more. The strength in our manufacturing sector requires consistent review of the technologies and services which are changing in a dynamic way at one hell of a pace. To assist with the effort. EMEX provides such a window.
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After all, product is still made in the work shop, welders are needed. As Fiona Kingsford, chief executive of Competenz says “industrial changes, innovations and automation are changing the number of jobs in New Zealand and, more critically, the sort of knowledge and skills people in the industry need to develop,” (Page 1 lead story)
Robotics: need for, practical applications, effect on workforce.
Vol.9 No.2 MARCH 2018
NZ Manufacturer March 2018
On another note, the policies of the new Labour government need to balance the need for skilled workers and a reduction of the number of skilled migrants into the country. It needs to re-think the free studies concept as to where skills are required and the best institutions to provide the training.
AI: how this will affect their company in the future; how they can benefit.
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Because where else in New Zealand can you view such a wide range of the latest manufacturing technology equipment and services and hear so many experts speak on market forces and influences?
New markets: where is the next market coming from and will the new TPP be beneficial? The workforce: not enough staff, not the right staff…and why don’t they stay? At EMEX you will see technologies and services to assist with these issues.
Success Through Innovation
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty -Sir Winston Churchill
Dial back on social media, global thought leader urges New Zealand SMEs New Zealand’s only Global Speaking Fellow and international bestselling author on entrepreneurship, Mike Handcock, is urging small business owners to dial back on social media in favour of authentic relationships and purposeful business – which are the real keys to successful business. Mr Handcock said relationships remain the core of business success throughout the world and contrary to what many people say, you cannot have a relationship through social media. “You go online to take people offline. Social media is only useful in so far as it provides a huge pond of potential customers, but as soon as you make contact, take them offline and start focussing on relationship – nobody wants to do business with machines; we want authentic connection.”
40 countries, said there are two fundamentals to succeeding in business no matter where you are in the world. “Authentic relationships and treating your customers as human beings is one of those two fundamentals, but you get to relationship by answering
You go online to take people offline.
Mr Handcock, who has spoken at numerous conference and entrepreneurial events in more than
the question ‘why’. Your reason ‘why’ is the second fundamental of doing business in this age.
“While social media is often all about what we’re doing now – reporting and reacting in real-time – people aren’t interested in that. They do, however, want to know your ‘why’. They’re not interested if you just want to make a million dollars and retire early – they want to know how what you’re doing is making the world a better place,” Mr Handcock said. Mr Handcock said that while social media does have its own place, his advice would be to keep it simple – focus on one, maybe two, social media platforms your customers frequent and go about using those platforms to connect with customers through your ‘why’.
technology to keep people at arm’s length. “The moment you connect on social media – and that person fits your customer profile – you should be looking to move the relationship offline. This may be an exclusive event targeted to their interests.”
“A sale happens after trust and confidence is built and the fastest way to trust and confidence is through authentic relationships – not using
Find a great home for your business EAST TAMAKI A great place to do business
NZ Manufacturer March 2018
Good is the enemy of great. -Jim Collins
Design ScanArm 2.0 improves product design workflow Faro’s next generation Design ScanArm 2.0 is specifically designed to address the most demanding challenges and requirements faced by product design and product engineering professionals. It offers an exceptional combination of flexibility, reliability, value and
performance through best in class accuracy, resolution and ergonomics.
Performance Design ScanArm 2.0 delivers up to 25% improved system accuracy compared to the previous generation. Design and
product engineering professionals can now have increased confidence that the real-world design output conforms even more tightly to the look, feel and complex geometry of the source object. Furthermore, productivity is enhanced with the addition of FAROBlu Laser Line Probe HD that incorporates advanced blue laser technology and rapid scanning of up to 600,000 points per second.
Flexibility and Portability Design ScanArm 2.0 is now available in three highly maneuverable arm lengths - 2.5m, 3.5m and 4m - to ensure that end users can select the option that optimally fits with the specific design objectives for
their projects. It includes the option of dual, hot swappable batteries that enable continuous operation wherever needed without the requirement for external power. Users can now bring the scan to the project rather than needing to bring the project to the scan.
Usability Enhanced ergonomics and a 25% overall weight reduction enables less operator fatigue. This leap forward in comfort, combined with improved maneuverability, significantly increases productivity by facilitating continuous use over extended periods during the workday. Design ScanArm 2.0 enables a new level of efficiency with integration of a kinematic intelligent probe system for projects that require contact measurement. This system includes a tool less quick release for fast connect/ disconnect and allows operators to quickly transition from contact to non-contact projects without needing to spend any significant additional time and effort to switch out or recalibrate probes.
Librestream and Olympus bring remote NDT/RVI experts into the field virtually Olympus Australia and New Zealand (Olympus) and Librestream Technologies Inc., a leader in remote expert systems for enterprise, are pleased to announce that Olympus is now offering Librestream’s Onsight platform to provide additional functionality to their product portfolio. Using Onsight, Olympus customers in industries including aerospace, manufacturing and oil & gas, can share live visuals from remote visual inspections (RVI) and non-destructive
testing (NDT) instruments with remote experts for rapid decision making in the field. “Onsight connects our customers in a way that truly transcends the remoteness we are accustomed to in Australia and Oceania. The ability to instantly share live visuals gives global collaborators a true presence, virtually taking them inside the inspection equipment,” said Brendan Slaven, RVI Product & VM Manager for Maintenance at Olympus.
“Librestream complements our technology perfectly with their vast experience in remote collaboration. Onsight brings the experts to you, when you need them, minus the requirement to travel,” Slaven continued. The Librestream solution includes Onsight Connect collaboration
software and the Onsight 400R Collaboration Hub device to connect to Olympus videoscopes, ultrasound and other test instruments. Olympus can also provide options to connect a variety of popular virtual reality headsets in order to share visuals in live 3D.
TechRentals® is an IANZ endorsed Calibration Laboratory. We offer both IANZ Endorsed and Traceable Calibrations of test and measurement equipment, including:
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NZ Manufacturer March 2018
Onsight allows customers to share live visuals with remote experts for rapid decision making in the field.
There is no elevator to success -- you have to take the stairs. -Anonymous
Built-Rite Tool & Die Injection moulding firm investigates quick-turn mould application, identifies 90% cost savings.
Built-Rite Tool & Die is a mould-making and design firm in Massachusetts with expertise in precision mould manufacturing. They specialise in the production of moulds for plastic injection moulding. These moulds have complex designs, requiring extensive planning and precise execution.
The challenge Small to mid-sized businesses like Built-Rite face increasing pressure from international and domestic competitors. Overseas manufacturers can offer lower prices and domestic prototyping shops can offer quick turnaround times for small quantities of parts. 3D-printing gives Built-Rite an opportunity to realise shorter lead times and gain an edge against the domestic prototyping shops. This includes the ability to iterate quickly to win bids and meet strict deadlines. The Studio System introduces the ability to make quick-turn mould assembly components with a process that is far less labour intensive than other equipment in their machine shop and more cost competitive than a third-party prototyping firm. The Studio printer prints with closed-cell infill to minimise material without impacting wear resistance required for toolingâ€”which is a primary application for the system. http://www.objective3d.com.au/built-rite/
NZ Manufacturer March 2018
Taxes are what we pay for civilised society. -Oliver Wendell Holmes Jr.
B2B Ecommerce â€“ More than just a Revenue Driver An increase in revenue is not the only opportunity for manufacturers and distributors with digital commerce solutions. Digital self-service options also reduce the cost to serve customers. Functions that were previously completed by customer service or sales representatives are moved online where customers have 24/7 access. Requesting quotes, approving order requests, completing online orders, checking prices, inventory availability and the status of orders are just some of the many self-service functions that can be available to customers online. The efficiencies gained from this free up the sales team to better serve and reach out to more customers. Self-service options also give customers what they want. Today, 93% of B2B buyers prefer self-service over picking up the phone. Contributing drivers are busy lifestyles and the need for flexible business hours, calling for the ability to self-manage and have instant access to services online. A proven, well-executed digital platform can meet these needs, making the buying process a smooth and efficient one.
Cross-selling, up-selling, presenting accessories, installation material, and personalised product suggestions such as recently viewed or purchased products enable customers to find what they are looking for with ease, all while creating opportunities to increase share-of-wallet.
In fact, 89% of B2B buyers use the internet to research before deciding on a vendor. Being seen by the right people is therefore key in order to build and improve brand awareness in a market place that is going through the imminent effects of digital transformation.
There are analytical benefits, too. Digital commerce solutions provide businesses access to in-depth data on customer activity and product performance. Measuring the effectiveness of marketing campaigns, sales and customer engagement has never been so easy. If integrated with the ERP, CRM and other business systems, companies gain even more valuable insights, empowering marketers to further develop and refine marketing strategies.
Of course, not all self-service solutions are created equal. With rising customer expectations shaped by the B2C experience, the concept of an omnichannel experience is one that market leaders in B2B commerce are embracing, while others are lagging behind.
B2B firms with a strong online presence also open themselves up to new business opportunities and the ability to serve customers they may have not been able to serve otherwise. More and more B2B buyers are looking for products and services online.
NZ Manufacturer March 2018
The idea behind the omnichannel approach is to ensure that every engagement is consistent from face-to-face interactions, to the phone, to the desktop computer and mobile phone. Customers now demand full functionality throughout their buying journey, which increasingly involves the use of multiple devices including the mobile phone. And there is good reason for that. Mobile technology has changed the
way people conduct business. It allows them to compare prices, research products, check stock availability and complete orders on the go when out and about. This not only applies to customers but also to sales representatives out in the field visiting customers. Instead of dozens of physical files for product catalogues and other sales material, sales reps can access this information digitally and share relevant information with customers on site. This improves efficiency and the customer experience. It is therefore no surprise that 84% of millennials and 75% of Generation X consider their mobile phone essential to their work. If implemented effectively, a B2B commerce solution can have a profound impact on an organisation. It can drive revenue but also increase customer reach, engagement and retention for long-term success. Need to talk to an expert to find out how you can get these results for your business? Call us today on 09 630 3074 or visit www.solutionists.co.nz to find out more.
FUJI XEROX AND 3D SYSTEMS…
LATEST DEVELOPMENT ON 3D PRINTING MATERIALS In November, 3D Systems released new materials for the ProJet MJP2500 and ProX500 (SLS) 3D printers.
A new class of MJP materials called the Engineering plastics range was introduced.
The MultiJet Printing (MJP) 2500 prints precise plastic parts that are ideal for a broad range of applications such as rapid tooling, jigs and fixtures, concept models, form and fit testing, functional prototypes and medical applications requiring USP Class VI and ISO 10993 medical certification.
VisiJet Armor (M2G-CL) is the new tough, impact-resistant, ABS-like material. It has ABS-like snap and drilling characteristics offering superior mechanical performance great for functional testing. Suitable for snap fits and impact testing, it has mid-low tensile and modulus, but high elongation and impact strength. The material appearance is clear and can quickly be coloured with fabric dyes.
The MJP 2500 gives high accuracy prints, fast print speed and repeatable results. It provides true to CAD part quality and precision prints with minimal hands on support post-processing. With these features, the MJP2500 has become a leading 3D printer allowing manufacturers to prototype for design validation, performance testing and design intent.
VisiJet ProFlex (M2G-DUR) durable, polypropylene-like, high impact material. ProFlex has a durable ‘bend, but don’t break’ characteristic. It can print functional living hinges and is great for applications that require deformable parts, such as containers and assemblies with clip features.
3D Systems has expanded the range of MJP materials to give new properties and different colours. There are four rigid grades, two new engineering grades, and two elastomeric grades. The clear, black, and white rigid materials have been reformulated to improve mechanical properties and heat deflection temperature (HDT). They have improved tensile properties, impact strength and offer stiff, high modulus. The VisiJet black has a higher HDT than the other materials allowing it to be used in temperatures of 53°C under load. Rigid grey (M2R-GRY) with its primer gray finish, allows for exceptional detail viewing. One unique benefit of this material is that parts are ready to paint straight after post processing with no additional prep work. It also has USP Level VI and ISO 10993 medical certification.
NEW PLASTIC MATERIALS Selective laser sintering (SLS) additive technology offers functional true end-use materials. The ProX 500 SLS DuraForm plastics are stable, durable, thermoplastics. They have the highest level of environmental stability, and have properties that will last over time. SLS Nylon PA12 has been an industry staple for over 30 years. Along with very good physical properties, 3D Systems’ DuraForm Nylon 12 is also biocompatible and meets food grade requirements. Nylon 12 has a broad range of chemical resistivity including hydraulic fluids, oil, fuels, grease, salt water, and solvents. And on 3D Systems ProX500 system, part surface finish is outstanding, having superior smoothness in its class. To broaden the set of SLS nylon materials, 3D Systems has release three additional materials.
There is now flame retardant Nylon 12 which passes FAR 24.853 testing. This material is enabling airlines to think differently about interior cabin design reducing fuel costs with weight optimised parts and eliminating specialised tooling and the need to stock extra spare parts. Also new is an aluminium filled Nylon 12 powder for the ProX500 system. Still classed as a plastic, this material offers parts with lightweight, high rigidity, and aesthetic metallic surface finish. Ideal for housings, wind-tunnel testing and automotive detail where the metallic finish is required. Finally, DuraForm EX black (Nylon 11) is new to the SLS range. Nylon 11 is a fine bioplastic polyamide powder made from renewable raw materials derived from vegetable oil, mainly castor oil. EX black, as its name describes, offers uniformly black colour throughout parts which resist fading and staining. It has outstanding durability and excellent impact resistance. It is much more fatigue resistant than Nylon 12 for applications like living hinges requiring hundreds of open-close cycles. This makes the material well suited for mechanically loaded functional parts. All the new developments above show the continual improvement of materials that additive manufacturing has on offer and that Fuji Xerox and 3D Systems is committed to the manufacturing of the future. Parts must be able to interact with their environment and hence need properties specific to their design intent. Material properties enable end-use applications, that should encourage New Zealand companies to see where additive manufacturing fits in their business and future development strategies. Fuji Xerox New Zealand is the exclusive distributor partner of 3D Systems technology.
NZ Manufacturer March 2018
I was eating in a Chinese restaurant downtown. There was a dish called Mother and Child Reunion. It’s chicken and eggs. And I said, I gotta use that one. -Paul Simon
The Manufacturers’ Network at EMEX 2018 The Manufacturers’ Network is coming to EMEX 2018! EMEX is a great chance to get a firsthand look at some of the equipment and technology available to improve productivity in your business – an ever-critical part of maintaining and improving our manufacturing businesses. In an environment where much of what is being showcased is new equipment manufactured abroad, at our stall we are going to highlight some of the exciting work being done by manufacturers in New Zealand, showing off some of their products and innovations. We want to talk to those manufacturers who attend, discuss how your business
is going, the technology on show and manufacturing in New Zealand more generally. If you’re attending EMEX, come say hello and have a chat to our staff and myself. As well as holding a stall at EMEX, we will be putting on two presentations. The first is titled: Rolling out advanced manufacturing technologies in New Zealand – how far have we got?
In this presentation, I will present the work we are doing with the members in our Advanced Manufacturing Initiative, and where the members in this group are at in terms of rolling out digital manufacturing technologies in their factories. There will also be a co-presenter from one such manufacturing company who are currently engaged in rolling-out a networked-manufacturing project in their factory. This will provide some practical insights into what is currently possible in New Zealand manufacturing. This presentation will also highlight some of the lessons learnt from the study tours we have conducted, in collaboration with Callaghan Innovation, including a trip to Germany to visit the Hanover Fair and local manufacturing companies involved in implementation of digital manufacturing, as well as a similar trip to Melbourne with our Advanced Manufacturing Initiative group. The second presentation will focus on how we can help closing our serious skill gaps in manufacturing, looking at short and long-term measures to address the skills shortages in manufacturing. Essentially, we want to work towards answering the question – how can we get better at growing our own, both as an industry and at the individual business level?
Opinion Manufacturing Profiles Letters to the Editor Politics of Manufacturing Trade Fair World Diary of Events World Market Report Q/A Export News Machine Tools 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
NZ Manufacturer March 2018
NZ MANUFACTURER • April 2018 Issue • Features
We continuously hear from manufacturers about the challenges they have getting skilled workers, across many skill levels. This presentation will provide some real practical advice and insights to those running businesses who are trying to find skilled staff, and those who are bringing on apprentices. Come visit The Manufacturers’ Network stand at EMEX 2018 and look out for the time table to catch both of these presentations.
Dieter Adam CE, The Manufacturers’ Network www.nzmanufacturer.co.nz
EMEX 2018 PREVIEW
Design for Manufacturing
I’ll share this slot with a couple of people who are very experienced in recruiting and mentoring apprentices to ensure a positive experience from the apprenticeship for both the apprentice, and the employer.
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Happiness is not the absence of problems; it’s the ability to deal with them. -Steve Maraboli
Innovate or Die
Innovation is the buzz word these days, but how and what to innovate in your business or product range is often a difficult decision. Two things stand out; asking questions and listening to the answers of course. And passion, as you will find out in the interview I had with Hamish Whyte CEO of Furnware, a school furniture manufacturer with less than 40 employees when they started the innovation process. Q What was it that sparked the quest for a new design? Furnware was very aware that humans as a whole were all changing physically. We knew that students were bigger and taller than they used to be. Avoiding the race to the bottom (of price and quality) we wanted to create a differentiation of product from the market - NZ economies of scale cannot compete with larger economies. We wanted to create a product that had an emphasis on: Design – that was fit for purpose, school furniture to assist with teaching and learning and children’s development. Quality. Q What were the first steps you took? Furnware owner Hamish Whyte travelled the world, attending international furniture shows to learn what the world is doing We discovered furniture trends and were confident that we were as close, if not closer, to customers than most companies and as a result we didn’t feel intimidated by international design. We liaised with academia, including
Unitec industrial designer Murray Pilcher. The rest is history. Q What convinced you that you were onto something good? Murray asked us, “Tell me about your customers” – and we realised that we had their customers all wrong. It wasn’t about the teachers, it was about the kids. This question started a journey to true student-centric thinking. To answer this question, we realised we needed to go back to school and learn. This highlighted what we knew from our own experiences but what was more evident as an observer was that there was fidgeting and discomfort in the room. Q What was it that made you decide to invest heavily in the project? It just seemed logical – from what we were observing and the information we were getting. Once we had absorbed and embraced this knowledge and its conclusions it became glaringly obvious that change was absolutely needed. Focus needed to be around the student not the manufacturer. It was evident that everybody is different – one size does not fit all. Q Who was the most helpful in the process? Apart from Murray and our design team and senior management - it was the students and their teachers who were the catalyst of our journey.
Hamish Whyte, CEO, Furnware.
Q What was the input from internal resources and external such as “advisers” and scientists? Mixture of both - University studies, measuring programme, project researcher, educationalists, designers, account managers, NZTE. Once we asked what was going on it seemed everyone wanted to be a part of the research. Massey, Waikato – many people contributed to the research and were excited that we were interested in what they’d donepeople had been independently working on similar things, but there had never been a practical application for the findings. As part of the process Furnware decided to measure 20,000 students in NZ of various ages and sizes. By involving 20,000 people it empowered us and it gave us a mandate to continue as what we found proved to be highly valuable. There was now a massive expectation from customers. We had opened Pandora’s box and knew what needed to be done. We had a moral obligation to do it. Q What surprised you most in the whole process, or what was the most unexpected issue? The amount of time it took and the cost – not only tooling and research but time. It was a project that you couldn’t fast forward or skip – it was a pilgrimage. Management thought we had reached the end of the research and development until someone asked about colour.
classroom calmer – that hadn’t entered the thinking previously. It had been much more about the ergonomics of the Bodyfurn design. Q Were you at any stage thinking of giving it up? What made you continue? Many times we talked about stopping or cutting corners but, at the end of the day, the emotional and physical impact on the students and teachers was too great – they didn’t want to give their trial furniture back. Q What is your advice for others who are thinking of developing a product or process? Test your assumptions and knowledge about the customers – you may be surprised! It’s always going to take longer than you think – that’s the power of research and design, until you explore, you don’t know. Your team needs to become the world’s greatest listeners – live as if you’re your own customer. Know more about the customers’ situation than they do, because if you add value to their lives then you’re on a GREAT journey. Furnware is a Hastings NZ based company. They employ over 150 people, run two shifts and have made a significant investment in machinery and production equipment. 95% of components are New Zealand made. Look them up https://www. furnware.co.nz. As you may have noticed CAD product design does not feature greatly in the story, but without it, the cost and time would have increased dramatically.
We engaged with a colour expert who steered us away from primary colours.
As you may find when you come across this product, cleverness and simplicity is beautifully executed.
We had no idea that colour and design would make the
Aaldert Verplanke (www.mandesign. co.nz)
NZ Manufacturer March 2018
THE CIRCULAR ECONOMY
We must never be afraid to go too far, for success lies just beyond. -Marcel Proust
Round and round into the futu By Adele Rose, Chief Executive 3R Group Ltd
To move forward we need to start going around in circles. This statement may sound counter-intuitive, but in terms of our modern economy it makes perfect sense. Since the industrial revolution the world has been predominantly operating on a linear economic model; we make products, we use them sometimes only once - and then we throw them away. When it’s put that simply it sounds wasteful and inefficient. And it is.
can run at a lower temperature when manufacturing with recycled glass.
A circular economy takes a far more sustainable tack whereby resources are kept in use for as long as possible, their maximum value is extracted, and they are recycled or reused at end of life. It leads to efficient resource use, lower carbon emissions and improved environmental outcomes. Most importantly it drives design innovation and efficiency in all areas of production, distribution and sales, and consumption.
In true circular economy fashion, one person’s waste becomes another’s resource, ideally within the same industry. Here, a glass beverage bottle or container is manufactured, used, and then returned to the manufacturer to be remade into a new bottle. The glass is kept out of landfill, jobs are created through recycling, and the raw material has value as a commodity to be sold back to the manufacturer.
Moving to a circular economy also has potentially huge economic benefits. A McKinsey & Co study suggests the savings in materials alone could globally exceed $1 trillion a year by 2025.
Of course, it’s not just common recyclables which fit into the circular economy model. Businesses and industries of all kinds are taking a fresh look at their products. There is a significant move towards, and demand from consumers, for products that last
ownership of the light fixtures and installations. Philips says they designed the fixtures to last 75 percent longer than conventional fixtures as they need to be more serviceable. “As the business retains ownership of the asset, they have a commercial incentive to maximise the use of the assets and resources they contain over their lifetime. So, recycling, remanufacturing and reuse become critical business processes. This then means they can reduce their dependency on raw materials and their exposure to fluctuating costs, changing the economics of doing business,” Mr Lancelott says. There is still a long way to go to realising a circular economy and New Zealand is no different, says WasteMINZ chair and director of Patterson Environmental, Darren Patterson. The linear economy is so intrenched and society is so siloed, there is no quick fix. “The linear economy is so much easier and there are so many vested interests – it’s not something that will change overnight.”
A clear example of the circular economy is found in every household in New Zealand – glass, specifically bottles and jars. Container glass is infinitely recyclable; it can be used over and over without a loss of quality or purity. New Zealand’s container glass manufacturer, O-I New Zealand, used 70 per cent recycled glass in its production process in 2016. Using recycled glass is not only better because it reduces the need for virgin materials, but it also uses less energy as the furnace
NZ Manufacturer March 2018
longer, use recycled components, are repairable, and have an end of life solution. Additionally, as business design expert Mark Lancelott of PA Consulting Group points out in his article ‘Businesses can turn a profit from the circular economy’, circular economy thinking is leading to a broad range of new business models. One example is the Philips Light as a Service at Schiphol Airport in Amsterdam. Schiphol pays for the light it uses while Philips maintains
However, the wave of change is gathering pace in Aotearoa. For the first time in its 15-year history, the Sustainable Business Network Awards added a circular economy category. The ‘Going Circular Award’ received the most entries of any category in the history of the awards. From large companies like Trade Me to SMEs like Ethique, 41 entries showcased the growing action on circular thinking in New Zealand. The winner of the category, Wishbone Design Studio, is a great example of a Kiwi company embracing circular principals. The company builds multi-functional balance bikes for children, made from 100% post-consumer recycled carpet.
They have taken their design back to when toys were durable, repairable and had a long useful life. Their bikes are a three-in-one product which can be transformed from three to two wheels and have an adjustable seat and frame, so they can grow with the child. They are also completely repairable as you can buy each part of the bike separately. At a more macro level, is the recently launched Circular Economy Accelerator (CEA), created by the Sustainable Business Network (SBN) with foundation partners 3R Group Ltd, Fuji Xerox and Auckland Council. It aims to speed up the circular economy by, “inspiring, influencing and enabling New Zealand organisations to benefit from this globally emergent way of thinking and working,” says SBN General Manager Projects and Advisory James Griffin. Quantifying what the circular economy is worth to New Zealand is also a focus of the CEA, with an initial focus on Auckland. “The Circular Economy is the economy of the future, but it is emerging right now. The companies that get to grips with it early will form the next wave of global success stories.”
Wishbone Design supplied this picture.
Six leverage points Sustainable Business Council General Manager Projects and Advisory, James Griffin believes there are six main leverage points to building a circular economy. One where the old linear approach of “take, make, waste” is replaced by one where resources and products are kept in use for as long as possible, then reused, repaired or recycled. - Fittingly, design is the first, and indeed it’s crucial to design products which are sustainably manufactured and last longer as well as are repairable, reusable and recyclable for the circular economy to work. - Secondly, and just as importantly, is consumer demand. “Customers need to start pulling circular economy solutions through with their procurement choices. And, look at the whole lifecycle costing rather than just the initial costing of things,” Mr Griffin says. A large part of this is awareness, he explains. Knowing that just because an item is cheap at the point of sale doesn’t mean there aren’t high externalised costs, such as impact on the environment, associated with it. A similar item which costs more may well have little or none of those externalised costs and last longer. - Infrastructure is the third point, and this is where New Zealand struggles, he says. The population size means we lack the scale for the infrastructure needed, such as specialised recycling facilities. Transport to the infrastructure that does exist is costly due to the geography of the country. - Business models, the fourth point, need to use circular economy thinking, Mr Griffin says. Changing from a ‘take, make, waste’ approach to one where the entire lifecycle of a product is considered, is key. - The fifth leverage point calls for the harnessing of emerging technologies and manufacturing techniques, such as 3D printing. - While policy is the final point, it is far from the least important. Mr Griffin points out key areas such as mandated product stewardship and an increased waste disposal levy. The levy in New Zealand is $10 a tonne. As MRA Consulting Group Managing Director Mike Ritchie explained in his presentation at the WasteMINZ 2017 conference, “waste is like a river, it will always flow to the lowest price”. If sending waste to landfill is cheaper than recycling or reusing it, then that is where it will go.
NZ Manufacturer March 2018
THE CIRCULAR ECONOMY
It is never too late to be what you might have been. -George Elliott
Moving from waste management to material optimisation The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation. Essentially a circular economy is one where companies manage all resources as valuable assets. The lifecycle of products is maximised, utilisation optimised and at the end of life of a product all materials are fully reutilised. This is achieved by designing and optimising products for multiple cycles of disassembly and reuse, and eliminating waste throughout various life cycles and uses of products and their components. A circular economy aims to move away from a traditional linear ‘take-make-waste’ model. Growth is, therefore, decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity, renewability, reuse, repair, sharing and dematerialisation. The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the inevitable and increasing resource constraints. At a macro level in New Zealand the Circular Economy is very much in its infancy. The system is partly connected by material flows, however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain.
upgrade, reuse and disassemble so at the end of life precious materials can be harvested and reutilised.
‘produced to order’, increasing the value of the item plus eliminating unnecessary production volumes.
Opportunities include: Materials index app: enable product designers to make more informed decisions on material selection in relation to key circular economy indices e.g. durability, recyclability and toxicity.
Infrastructure Even if a product is modularly designed for disassembly, in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist, or be accessible or currently viable. We need to be smarter on how we use what we’ve currently got and achieve scale to make new solutions viable.
Material challenge: online challenge platform where organisations list waste resources and ‘challenge’ people to design new and innovative uses for them. Demand Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings. Yet waiting for consumer ‘pull through’ will not get us where we need to be fast enough. Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity, upgrading, repair and reuse desirable. They can provide more innovative ways of addressing customer needs without relying on selling them more stuff. From a business-to-business perspective, ‘end of life’ solutions and a focus on ‘whole of life’ costs as opposed to initial cost need to be core parts of procurement policies.
Opportunities include: Mapping ‘gold’: online map of where current waste resources can be found in a city. Fix it: online platform providing repair manuals and selling tools and spare parts to allow customers to repair their own products. Slow mail logistics: create a non-time sensitive delivery mechanism and service to get end of life products back to a place where they can be utilised at an affordable rate. Return to prison: an initiative where prisons and inmates are used as repair/ refurbish hubs for products at the end at end of life.
Opportunities include: Deposit scheme: incorporate a deposit element into the price charged for a product, which is repaid to the customer when the product is returned at the end of its life. This enables a lower net price to be charged based on the fact that value can be extracted from the product at the end of its life.
Ownership An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill. If you consider the number of households in New Zealand that own a drill, the average use of a drill over its lifetime, which is only 20 minutes, and the fact that it’s not the drill that is needed but the actual hole it creates, this illustrates the current underutilisation and unnecessary duplication of resources that ownership of assets can produce.
Potential solutions To accelerate the Circular Economy in New Zealand we have identified, via The Big Shift process, six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use.
Longest lasting awards: campaign to share and promote how long products have lasted, with awards given to both users and brand owners of products that provide the greatest length of service.
Increasing examples of businesses based on new models – such as the sharing economy or collaborative consumption and ‘product as a service’ – are encouraging customers to rethink ownership.
Sell back platform: a simple and accessible platform for owners to sell back products to manufacturers.
Circular feedback loop: creation of an app to allow instant feedback to brand owners from customers on all circular aspects, for example, “I did / didn’t buy your product because……..”.
Opportunities include: Product as a service: a programme to remodel a business to enable a transition from selling products to selling a service.
On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes, ‘closed loop’ practices and the emergence of collaborative consumption models. The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand.
Design It is fundamental that product design incorporates ‘circular’ thinking and avoids locking-in linear pathways from the outset. This means that products need to be designed for longevity, incorporating the ability to repair,
NZ Manufacturer March 2018
Custom Products: enable the customisation of a currently mass-produced product to become
Library extension: utilise library infrastructure and systems to extend their product offerings beyond books and DVDs to other items such as drills. ‘Sharing’ schools: use schools as community hubs for borrowing
everyday items such as lawnmowers, with the revenue split between the school and owner of the product. Sharing Map: display what and where items can be borrowed around the city – a sharing version of Trade Me. Emerging technology Emerging technology is opening up new opportunities to facilitate more circularity. We’ve seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders. In addition, 3D printing has the ability to prolong life cycles of products by being able to print out spare parts. A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits. Opportunities include: 3D printing challenge: a public challenge to create the most useful item from 3D printing technology to promote awareness of potential solutions the technology can offer. Legislation The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play. There is progress on Government intervention in electronic waste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax, or GST) on recycled goods, which would be a game changer. One of the key projects the SBN is working on currently is to create Circular Economy Model Offices (CEMO). The objective of the CEMO project is to promote a ‘circular’ solution to office fit outs by establishing a ‘Circular Economy’ industry accepted specification and guide for the hard fit out of an office building and demonstrating the specification via fitting out and profiling pilot office sites.
Life is not measured by the number of breaths we take, but by the moments that take our breath away. -Maya Angelou
EMEX 2018 – The biggest in decades More than 150 international and local exhibitors will inform, delight, entertain and celebrate kiwi design and innovation across the three days. There’s also the serious business of putting forward great commercial deals for the manufacturing community. If you’re in Engineering, Manufacturing or Electronics then you really need to visit this free event to best position your business with the latest technology on offer. This year will see more machines onsite at EMEX than previously. New Zealand’s leading CNC suppliers are going all out to showcase their latest products and machining technology. In addition, exhibitors from the world of industrial automation will be displaying Robotics that are shaping the future of the manufacturing industry. The top NZ suppliers are set to wow visitors with a range of automation solutions that will deliver your business efficiencies and the ability to compete on a global scale. One of the key features of EMEX 2018 is the comprehensive free seminar program. “on all 3 days of the show there are informative and thought-provoking sessions covering
topics ranging from Advanced Manufacturing (incl. 3D printing), Industry 4.0, Collaborative Product Design, skill shortages in the industry and how to address these as well as Practical solutions for implementation of Health & Safety practices, all presented by some of the most respected experts in their field
Kiwi Design & Manufacturing Innovation – Close up The addition of an extra exhibiting hall sees the introduction of an Innovation Quarter with the featured presence of the Stabicraft 1600 Fisher brought to EMEX by Stabicraft and Caliber Design, an engineering, analysis, and mechanical design consultancy. Jonathan Prince, Director at Caliber Design says, “this is a brilliant example of collaborative product design where in order to compete globally New Zealand businesses have had to innovate and collaborate to make collective gains.
by experts from complimentary businesses such as Caliber Design bought a fresh perspective, design process thinking, and bespoke use of composites to the recreational boat market.” As Aad van der Poel, sales and event manager of EMEX says, “EMEX is New Zealand’s premier technology trade show and if you are an engineer - mechanical, design, consultant, electrical; machinist; communications
technician/manager; supervisor; technical operator; operations manager or similar, then EMEX offers the tools, technology and services to work smarter.” EMEX 2018 runs from 1 to 3 May at ASB Showgrounds, Greenlane, Auckland. Free registration is now open for industry professionals wishing to attend. Simply visit: www.emex.co.nz/ visitor-information/register/
“The Stabicraft Design team supported
ABOUT EMEX New Zealand’s leading engineering, manufacturing and technology trade show • • • •
Innovation Quarter with the latest technology and NZ Start-Up precinct Special Kiwi Design Machinery & Manufacturing Employment & Training Hub 3 Days of Free Seminars: Advanced Manufacturing (3D printing) Industry 4.0 applications How to address Skills shortages in Industry Collaborative Product Design • The Great Kiwi Engineering Challenge Competition • Workplace Health & Safety Advisory Lounge
BIGGEST SHOW IN DECADES
1-3 May 2018
ASB Showgrounds, Auckland
Over 150+ Exhibitors
Tuesday 1st May 9am - 6pm Wednesday 2nd May 9am -6pm Thursday 3rd May 9am - 4pm
REGISTER NOW www.emex.co.nz
*Trade only event, entry is free
INSPIRING MANUFACTURING AND INNOVATION EXCELLENCE
NZ Manufacturer March 2018
It is not because things are difficult that we do not dare; it is because we do not dare that they are difficult. -Seneca
Machine learning and Big Data offer massive potential Marianne Culver, President of RS Components, looks at the short-, medium- and long-term impacts of Big Data and how it can be exploited for machine learning and Artificial Intelligence. Just a few decades back, the defence industry was quick to exploit the potential of intelligent machines and systems that could use in-the-field data in order to ‘think for themselves’; primarily to make simple, fact-based decisions that removed the workload from human operatives. This concept of data-based machine learning and Artificial Intelligence (AI) is now seeing much wider deployment in civilian applications too – with many of us not actually realising that we are the information sources creating the data upon which these systems base their decisions. Leading tech firms, such as Google and Netflix, regularly leverage huge amounts of on-tap user-specific data to feed algorithms that ultimately help them streamline and enhance their customer offerings. Replace the term ‘user-specific data’ with ‘machine-specific data’ and it quickly becomes clear that Big Data and machine learning have the potential to revolutionise the manufacturing, process and, indeed, any other networked or machine-based
industries. In fact AI-driven procedures are already making a difference across a number of industries, with companies such as Presenso and Predikto already providing AI-based analytical solutions for maintenance operations. Predictive maintenance is a perfect illustration for AI-based systems, as it can leverage a relatively small number of simple but incredibly informative data sets and then use them to predict and provide remedial actions. With the advent of the Industrial Internet of Things (IIoT) and, as a result, Big Data, coupled to an almost exponential expansion in the number of data-providing end points or nodes, this type of capability will become more prevalent, powerful, informative and effective. However, even a single simple manufacturing cell can generate in excess of 50 points of data per second, and over the period of a shift this can quickly turn into a tidal wave of ones and zeros. This is where AI and machine learning will step in. As part of Big Data analysis, AI will
THE CIRCULAR ECONOMY Increased transparency, new customer expectations and emerging technologies are disrupting traditional sources of competitiveness. From mobile to machine learning, big data to blockchain, seemingly there’s no end to what technology can enable or improve. As we enter the Fourth Industrial Revolution, new technologies carry immense opportunities to transform the way we do business. These technologies are driving new ways of creating value in a circular economy, for both emerging and established businesses alike. Given the fragility of the linear economy, based on its reliance on finite natural resources for growth, and as we move ever closer to the brink of our planet’s boundaries, it seems companies with their heads in the clouds could be the key to unlocking the value in a regenerative, recycling economy.
Technology and sustainability Technological advancement has catalysed the development and implementation of circular business models, driving new processes, new communication channels and new operational efficiencies that enable the decoupling of resource use from economic growth across industries and on a global scale. Digital, physical and biological technologies are quickly maturing and, in some cases, demonstrating exponential growth in their application and uptake. While digital technologies are based on computer sciences, electronics and communication, physical technologies focus on the basic property of materials, energy, forces of nature and their interaction. Meanwhile, biological technologies are primarily based on the structure and function of living organisms, their systems or the derivatives thereof. Together, this combination of technologies gives an injection of momentum to disrupt current industry models. Here’s a selection of leaders: 1. Rubicon Global (cloud, big data) Rubicon’s cloud-based, big-data platform connects waste producers with a network of independent waste
NZ Manufacturer March 2018
distinguish relevant data from noise, define logical connections and correlations between these data sets, remove any non-connectable data and then provide pertinent information upon which decisions can be made – either automatically or via human interaction. The good news is that future AI and machine learning can be catered for now, by any company running any solution. Adding intelligence and data gathering capabilities to even the ‘dumbest’ manufacturing operation is relatively straightforward and can be achieved with a very palatable financial outlay. Even if the data generated is not leveraged immediately, the solution will be ready for when it can be; and the historical data can be put to very good use. The chances are that these AI systems and analysis solutions will take the form of cloud-based subscription services, which will also leverage data from other similar entities and applications in order to present the best possible
solution. And, with a younger and more tech savvy, multi-skilled workforce stepping into the shoes of older engineers, data, especially its collection, collation, translation and deployment, is creating the next industrial paradigm. Luckily Big Data does not need deep pockets. There’s no better time to start collecting than now. At RS, we already have many systems and initiatives in place to both cater for the demands and exploit the benefits of the Big Data-driven manufacturing economy, and we are feeding these products and support solutions to our customer base. Even the most basic manufacturing data – especially when leveraged intelligently – can make a huge difference and the path to adoption is already wide open and incredibly well supported for applications of any size and budget.
These disruptive technologies are driving the circular economy haulers across 50 states in the US and Canada, as well as 18 additional countries. This enables higher diversion rates from landfill, creative reuse of waste material, optimised truck routes and the detailed analysis of waste data. 2. NCC (mobile) Through their open eco-system, Loop Rocks platform, NCC are allowing the inherently asset-heavy construction industry to become more resource efficient. Their app makes waste from over 600 sites available to other companies at a reduced price, optimising the handling of waste and secondary masses in a smarter, cost-effective and more environmentally conscious manner. 3. Hello Tractor (machine-to-machine communication and mobile) Based in Nigeria, Hello Tractor uses mobile technology to enable over 250,000 small-hold farmers to obtain tractor services on demand, improving their food and income security. Furthermore, the tractors are fitted with M2M technology to share information on the vehicle and its efficiency, in turn maximising the utilisation, extending the tractor’s usable lifecycle, and increasing the value yielded from the machine. 4. Apple (robotics) Liam,
Apple’s robot, Liam, can split old iPhones into their components for reuse in 11 seconds.
robot, has 29 arms and is capable of dismantling a discarded iPhone in 11 seconds, and separating its component parts into usable materials, capturing the value from previously discarded resources at an unprecedented rate. To date, Apple has captured 61 million pounds of material that is reusable in future products, including 2,204 pounds of gold, to a value of $40 million. 5. gCycle (bio-based materials) Pioneers in the eco-friendly diaper industry, gCycle’s gDiaper is the world’s first certified cradle-to-cradle, 100% compostable, children’s diaper. By replacing oil-based plastic with non-GMO corn biofilm, gDiapers allow childcare centres to divert 80% of their waste stream from landfill. Technology is central to enabling and driving value in the circular economy. The importance and role of it is recognised by the Circulars, the world’s premier circular economy award programme.
Running a startup is like eating glass. You just start to like the taste of your own blood. -Sean Parker
Low-height skidding system moves heavy loads in the tightest of spaces powered by a standard Enerpac Split Flow Pump to ensure each skid beam travels synchronously. When using two skidding units together, the maximum capacity is 3,560 kN of force, which can lift 400 tons, utilising 700 bar (10,000 PSI) hydraulic pressure. The Low-Height Skidding System has a push-pull stroke of 600 mm and is designed to easily change skidding direction, using Enerpac’s globally proven hydraulic pumps and cylinders.
Enerpac’s new Low-Height Skidding System is ideal for transformer maintenance, shown above. Global hydraulics and heavy lifting technology specialists Enerpac are introducing to Australasia a new Low-Height Skidding System – which stands at just 92mm with the track – for the accurate positioning of heavy loads in tight and awkward spaces. The Enerpac LH-Series Low-Height Skidding System is a modular track system that can jack and slide heavy loads, such as transformers, generators, motors or drives, over a pre-constructed track. Skidding systems are ideally suited to tight spaces where cranes can’t access the load effectively. The new
low-height system takes this one step further by using a rigid, durable design that can access even tighter spaces, while still providing high lifting capacities. Skidding systems are typically 200-600mm high, which is still an enormous advantage when cranes can’t access a lift site, but the Low-Height system, at just 92mm, opens possibilities in even tighter, more compact applications.
Customised solutions can be implemented for complex projects, such as utilising optional track support and connecting both power units together to provide synchronous travel of the load. Such a configuration would be used in applications like transformer outage maintenance.
offers a 2-in-1 design. It can be used either on a fully supported surface or combined with the optional track support for added rigidity when the support surface is not fully supported or when spanning a gap is necessary. This two-part design means operators do not need to own two sets of tracks for various ground support conditions. Enerpac is providing world-class support and product training with the introduction of the Low-Height Skidding System, as part of its global “Goal Zero” initiative, which aims to achieve zero harm to its employees, customers and end-users of its products.
In addition to its low height, this system
The Low-Height Skidding System is comprised of a series of skid beams moved by hydraulic push-pull units, travelling over a pre-constructed track. A series of special PTFE-coated pads are placed on the skid tracks to reduce friction. The push-pull units are
Simplest valve actuators provide automation and production efficiency By James Maslin, National Sales and Marketing Manager for Air Springs Supply Pty Ltd. Rapid and reliable actuation of gate manufacturing, mining and mineral Ltd - are tough, fabric reinforced valves is becoming more and more processing, liquid-solid separation, rubber balloons of different shapes critical to liquid and gas handling filtration, materials handling, water engineered to perform different tasks. applications as industries face and waste water and waste-to-energy The simple single, double and the twin demands of production projects. triple-convoluted airbags operate automation and pressure to produce Typically gate valves are manually or without seals, shafts or internal without production interruptions for (occasionally) hydraulically actuated, moving parts to provide ultra-reliable maintenance. but where faster or remote actuation actuation alternatives for materials Gate valves, also known as sluice valves, are one of the most widely used types of valves in industrial applications, where they typically operate either fully open or fully closed, being used in pipelines as isolating valves rather than control or regulating valves. Their compact simplicity, low pressure loss, bidirectional versatility and ability to handle full flows where particles cannot cluster has led to widespread use in process engineering applications throughout industries such as food and beverage, agribusiness,
is required, they usually rely on conventional pneumatic actuation using a cylinder with rods and seals. However, an alternative means of actuation is available to process engineers charged with designing pipeline and reticulation systems that respond to the needs of automation and uninterrupted production demands. These flexible-wall, bellows-type Airstroke actuators - manufactured by Firestone and distributed throughout Australia by Air Springs Supply Pty
handling technology exposed to grime, debris and waste, which can disrupt the seals and shafts of convention pneumatic and hydraulic cylinders. Reliability engineered into their DNA Structurally they are identical to the enormously durable and reliable Firestone air springs used as OEM equipment in the suspensions of huge trucks and semi-trailers. This proven reliability under some of the worst conditions imaginable – like being continuously battered on Outback roads at extreme ambient temperatures
– is what makes Airstrokes so tough. It’s engineered into their DNA. The globally proven Airstroke range comprises single, double and triple convoluted models with strokes up to 300mm. They suit applications requiring clean actuators that don’t need lubrication, but which can also cope effortlessly with dirt and grime. A big plus in some applications is that Airstrokes can stroke through a radius without a clevis, thus eliminating both complexity and cost when engineers need to actuate through an angle. Their ability to soak up shock without damage while delivering high-repetition strokes means they are also highly applicable to engineering applications ranging from stamping and clamping to pumps and conveyors.
NZ Manufacturer March 2018
You never know what worse luck your bad luck has saved you from. -Cormac McCarthy
Spend a little to save a lot Paolo Carnovale, Head of Industrial Product Marketing, RS Components
Spending money to save money doesn’t come easy to some. But in the case of predictive and preventative maintenance regimes – especially for high-capital assets – a relatively modest spend could potentially offset repair or lost-production costs that run into millions. The problem with maintenance spend is that it is very hard to quantify its benefits if nothing actually goes wrong – accountants tend to like tangible figures as opposed to those generated by “what-if” scenarios. Couple this to budget competition from other disciplines and the job of justifying the expenditure becomes even harder. As it is tough to define an “opportunity cost/loss” in terms of maintenance statistically, it is far easier to look at the issues simplistically by determining, for example, the cost of maintenance vs. the cost of repair/replacement and the expected life of a machine or asset vs. its extended service life. In all cases, the cost of lost production, goodwill and customer confidence must also be factored in to this equation. Even with these simple analyses, the need to have maintenance as a strategic element of an operational plan, becomes very clear, but what is the next logical step? For those with complex operations, the obvious route is the deployment of a computerised maintenance management system (CMMS), which will help remove much of the guesswork and workload by defining a strategy and timetable as well as the actual work to be undertaken on individual machines and assets. More often than not, this type of proactive approach is combined with technological solutions that offer a real-time snapshot of machine health. These solutions range from simple
temperature sensors and vibration probes all the way up to bespoke, fully featured condition monitoring (CMS) software solutions. How they are selected, deployed and subsequently interrogated depends very much on the application. In the case of electronic systems, most are “clever enough” to know when they
ways. In the majority of mechanical systems, wear is the primary culprit, resulting in (to name but a few) reduced tolerances, elevated heat levels, slower and jerkier movement and the inevitable loud squeal and grinding that foreshadows something going seriously wrong. The good news is, with proper servicing and regular observation, mechanical systems can easily match and even exceed the predicted overall life of the machine. One of the primary predictive measurements in the case of wear is heat generation. Lubricant failure and additional friction almost always equate to elevated heat levels. In these cases simple, inexpensive temperature sensors come into their own.
are going wrong or are much easier to interrogate using intelligent systems, although cabinet-based components do need careful monitoring. Mechanical and electromechanical systems, on the other hand, tend to be more demanding and can fail in a much wider (and noisier) variety of
One example would be the PN151 NFC Infrared Temperature Sensor from Calex. By mounting a sensor like this near potential wear points, operators can be quickly made aware of any issues that are normally preceded by elevated temperatures. Another approach would be to use thermal-visualisation solutions, such
as those offered by FLIR. These deliver a ‘heatmap’ in an easy-to-decipher format and are designed to highlight specific hotspots, delivering the means to target maintenance more precisely. Wear is also normally accompanied by vibration, especially in rotating equipment. Specialist vibration sensors exist, such as those from SKF, which can measure multiple frequencies in order to differentiate between normal and abnormal vibration. Indeed, some sensors and their associated software can even highlight the potential failure mode by interrogating the frequencies being measured and comparing them against those generated by known failure modes. Earlier, we mentioned maintenance as a strategic tool. With this and a longer-term view in mind, plant managers have to cater for the changing demographics of their workforce, from one that comprises a greater number of older, specifically skilled workers, who know their machines more intimately and can therefore interpret subtle wear signals, to a smaller, younger multi-skilled workforce who rarely build up the same level of technological relationships. This younger workforce is also much more comfortable with digital solutions. From a strategic operational perspective, maintenance expenditure should be seen as something that can increase overall equipment effectiveness (OEE), create faster return on investment (ROI), lower reactive repair costs, reduce secondary damage and contribute to increased or maintainable product quality. These are the tangible benefits that have to be at the forefront of any expense justification; and with a modest expenditure potentially having a massive positive impact on virtually all strategic goals, it is very hard to create a cogent counterargument.
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ADVISORS Mike Shatford
is an expert in the field of technology development and commercialisation. His company Design Energy Limited has completed over 100 significant projects in this vein by consulting for and partnering with some of New Zealand’s leading producers. Among Mike and his team’s strengths are industrial robotics and automated production where the company puts much of its focus.
Managing Director, Objective3D Matt has extensive hands on experience as a user and supplier of 3D Printing technology. He comes from a mechanical design and engineering background with 25 years’ experience in multiple high end 3D cad applications across a range of industries, including aerospace and automotive. He has been heavily involved in the 3D printing evolution - from initial early prototyping to todays advanced 3d printing technologies producing production parts straight off the printer. As Managing Director of Objective 3D, he provides Stratasys, Desktop Metal and Concept Laser 3D printing solutions to a host of industries across Australia and New Zealand.
Sandra Lukey is the founder of Shine Group, a consultancy that helps science and technology companies accelerate growth. She is a keen observer of the tech sector and how new developments create opportunity for future business. She has over 20 years’ experience working with companies to boost profile and build influential connections.
Phillip Wilson of Nautech Electronics has over 25 years of experienced in the development, commercialisation and implementation of advanced manufacturing technology, robotics, automation and materials. Serving companies operating within the aerospace, automotive, offshore, defence, medical and scientific industries on a global basis. More recently specialising in change management and business re-alignment for a range of commercial entities from medium sized SME’s to divisions of large corporates.
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Power means happiness; power means hard work and sacrifice. -Beyonce Knowles
Industrial Software Platform delivers maximum return Schneider Electric has announced increasing momentum surrounding customer adoption of the company’s Asset Performance Management (APM) solutions, an integral component of the Industrial Software Platform. Through investments in the cloud, advanced machine learning and augmented reality (AR), coupled with new partnerships, the company empowers customers to maximise their return on capital investment and to improve profitability. “Defining and executing an asset performance strategy is a critical component to improving productivity while safeguarding business continuity,” said Kim Custeau, Asset Performance Management Business Lead at Schneider Electric. “We have been delivering proven, industry leading asset performance solutions for nearly 30 years, and continue to invest in a long-term strategy to drive innovation in this area. “Our focus is to provide real value to our customers by empowering them to maximise return on capital investment and improve profitability. We are proud to see our customer results speak for themselves with significant reported savings. “Industrial IoT (IIoT) and Industry
4.0 provide new opportunities to improve overall business performance, particularly for APM. For owner-operators, this includes operational improvements largely involving improved asset reliability,” said Ralph Rio, Vice President Enterprise Software at ARC Advisory Group. “Users have reported that moving from preventive maintenance to predictive or prescriptive approaches provided a 50 percent savings in maintenance labour and MRO materials. With predictive and prescriptive maintenance, near-zero unplanned downtime for critical equipment can be achieved.” Machine Learning and Prescriptive Analytics Machine learning and advanced pattern recognition play a central role within Schneider Electric’s asset performance solutions, enabling customers to more accurately predict – and proactively resolve – issues before they impact their business. This increases reliability, reduces costs and improves safety. Duke Energy prevented an estimated $35 million cost from early warning detection of a steam turbine problem. Ascend Performance Materials now responds faster to alerts with actionable intelligence, saving an estimated $2 million through avoided plant shutdowns alone.
As part of the expansion of Schneider Electric’s cloud platform, these predictive and prescriptive maintenance capabilities can now be implemented in locations where it previously was not economically feasible. Augmented Reality (AR) Innovative companies are changing how they run their business with Schneider Electric’s AR as an integral part of their APM strategy. In the chemical industry, BASF is implementing AR to improve asset performance, reliability and utilization while increasing production efficiency. During maintenance work execution, technicians can now leverage an augmented digital representation of the asset to improve efficiency and safety. The digital asset model captures years of experience and expertise which empowers the new workforce.
Cloud and Hybrid Deployment Schneider Electric offers commercial and technical flexibility to address every customer need, delivering solutions through a range of deployment models (Cloud, Hybrid, On-Premise) and commercial purchase options (Subscription, SaaS, Perpetual). WaterForce partnered with Schneider Electric to develop an IIoT remote monitoring and control system in the
cloud that allows farmers to operate irrigation pivots with greater agility, efficiency and sustainability.
New Partnerships MaxGrip and Schneider Electric recently announced a new partnership agreement to expand APM consulting and add Risk-based Maintenance capabilities. The APM assessment is a critical first step for industrial companies to evaluate their asset reliability and digital transformation strategy. This review takes into account business context to benchmark current performance, identify areas for improvement and deliver an APM roadmap. Schneider Electric and Accenture recently completed development of a Digital Services Factory to rapidly build and scale new predictive maintenance, asset monitoring and energy optimisation offerings. As a result of these partnerships, a large food and beverage company saved over $1 million in maintenance costs.
Innovation hub to fast-track Industry 4.0 The Tonsley Manufacturing Innovation hub in Adelaide is designed to accelerate the national adoption of ‘industry 4.0’ technology among hi-tech and manufacturing businesses, as well as foster research and development. The hub’s February launch comes at a time when the nation’s economy is transitioning from a traditional manufacturing base to more digitalised, knowledge-based industries following the closure of Holden’s Adelaide plant late last year, which brought an end to automotive manufacturing in Australia. Professor John Spoehr, Director of the Australian Industrial Transformation Institute at Flinders University, said the adoption of new age digital technology was crucial due to the highly competitive environment of manufacturing internationally. Professor Spoehr said the hub would enable closer collaboration between
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educational organisations and businesses to better understand digital technology in new age manufacturing and its impact on the performance of companies and workers. The term ‘industry 4.0’ refers to the growing trend of automation and the use of the Internet of Things, Cloud computing and cyber-physical systems in advanced manufacturing. Situated on the ground floor of the Flinders University building at Tonsley, one of the key facilities at the Tonsley Manufacturing Innovation hub is the modular Future Factory. Made in Germany by technology giant Festo and funded by the South Australian Government, it showcases the latest automation, sensor, monitoring, robotic and cobotic technologies and is one of only a few Future Factories in the Southern Hemisphere. Professor Spoehr said the platform was modularised and could be reconfigured in a variety of ways. Other facilities at the Flinders Tonsley campus include autonomous sea vessels and testing capacity, photonics technologies, a Faraday cage, interactive co-bots, a large hexapod robot for biomechanical testing and a variety of digital manufacturing and
rapid prototyping machines. The Tonsley precinct in Adelaide’s southern suburbs, which was once a former car assembly plant, is Australia’s first innovation district. The last Mitsubishi sedan rolled off the production line at Tonsley in Adelaide’s southern suburbs in 2008 sounding an early warning for the future of traditional manufacturing in South Australia. Almost a decade on and the site has been transformed into a leading innovation hub, bringing together advanced manufacturing companies, University STEM programs, renewable energy leaders and hi-tech pacesetters in the one precinct, which is now home to more people than the last days of Mitsubishi. SAGE Automation is a national control services and industrial automation company founded in South Australia and is among 20 businesses associated with Flinders University at the TMI hub. The Tonsley-based business specialises in automation technologies and services for manufacturers across Australia. The establishment of the TMI hub comes from collective work between Flinders University, the South Australian
Government and Melbourne’s Innovative Manufacturing Cooperative Research Centre (IMCRC). Based in Melbourne, the Innovative Manufacturing Cooperative Research Centre provides a range of services for Australian manufacturers seeking to implement industry 4.0 technology. Professor Spoehr said the university’s partnership would ensure their support in working with companies over the next five years in the new facility. South Australian Manufacturing and Innovation Minister Kyam Maher said it was important to ensure the advanced manufacturing workforce and companies had the ability to compete globally in niche markets as the economy transitioned. “Industry 4.0 is the next technological wave that will create opportunities for South Australia’s advanced manufacturers to diversify into growth sectors such as defence, food and health,” he said. “The TMI Hub will further cement Tonsley’s reputation as a global centre of excellence for industry and research collaboration, with modern facilities to train people for the jobs of the future.”
Luck is a dividend of sweat. The more you sweat, the luckier you get. -Ray Kroc
Myriota to open IoT laboratory
to help meet demand for its technology
The $2.72 million laboratory will be located in the CBD of Adelaide to allow the company to integrate its ultra-low-cost satellite IoT solution into a wide range of global products and services. Myriota’s $1.36 million investment will be matched by the South Australian government’s Future Jobs Fund to equip the new office. Myriota’s technology involves tiny satellite transmitters that send low powered messages directly to a constellation of low-earth-orbit nano satellites. These satellites relay the messages to earth where they are Last September it was announced that
their matchbox-sized sensor was being developed to track the movement and performance of soldiers on the battlefield in an AU$700,000 deal with the Australian Department of Defence.
“The lab will be equipped with cutting edge equipment and clean spaces to enable our engineers to advance our own platform and integrate our product into other people’s devices.
Myriota Chief Executive Officer Dr Alex Grant said the laboratory will allow the company to scale up production and further integrate this technology into more systems.
“This new IoT lab will enable us to build on our core technology and apply it across a wide range of industries including agriculture, defence, utilities, environmental monitoring, asset tracking and logistics.
“Our low-cost IoT system has been deployed in field trials for months now, and there are hundreds of companies here and overseas interested in using our product to provide connectivity for a huge range of applications,” Dr Grant said.
Dr Grant said the new lab would create more than 50 new jobs in IT and advanced manufacturing, including highly skilled software and hardware developers, data networking and satellite communications professionals.
One of Myriota’s small sensors.
According to Dr Grant, Myriota, which was named best industrial start-up at the 2017 Internet of Things World Congress in San Francisco, has the potential to undertake production runs of millions of units for export in the coming years. “Our system works from any location on earth, and we look forward to taking our product global.”
HMI software features improve operator efficiency Rockwell Automation has updated its HMI software to equip industrial workers with better information to run and maintain their systems. New features in the FactoryTalk View software version 10.0 include greater access to information, new mobile device support and better cross-software integration to improve productivity. Operators can now use the TrendPro tool in FactoryTalk View Site Edition (SE) software to overlay alarm information on trend data. This feature can help them connect alarm occurrences with data-point values to speed up troubleshooting. They can also use the tool to save and share ad hoc trends with other workers. “This version also adds support in the HMI for flexible alarming with the Allen-Bradley Logix line of controllers,” said Dean Tresidder, Commercial Specialist – Software, Rockwell Automation. “Previously, users had to manually create alarm conditions in
both the controller and the HMI. With tag-based alarming, operators can now create the alarm configuration in Logix and the HMI will process it automatically, which saves time by reducing the need for programming.” FactoryTalk View SE v10.0 also integrates the ThinManager software login into the FactoryTalk View platform. In the past, users had to separately log in to both systems. Now, they can bypass the second security point with an automatic login pass-through for easier and faster operations. For process industries, the FactoryTalk View SE software introduces an abnormal situation management (ASM) multi-monitor framework. This feature allows operators to see different levels of data across multiple screens in accordance with standards-based ASM guidelines. It can also provide operators with more viewable information, helping them more efficiently run and maintain their
systems. The updated FactoryTalk ViewPoint software, which extends the FactoryTalk View SE software to mobile devices, now supports recipe management. This update allows workers to view and download recipes on the device of their choice. And now, with ViewPoint v10.0 software, FactoryTalk Alarms and Events alarm history is also available on their mobile devices.
legacy projects and improves usability when editing displays. Prior to this release, operator actions could be logged to an audit trail, but there was no guarantee that the system would capture them. Now with onboard audit trails, this information is captured locally on the terminal, and audit data is securely stored there until it can be backed up.
The FactoryTalk View Machine Edition (ME) software v10.0 adds design-time and run-time enhancements to improve user efficiency and productivity. The HMI software now better supports restoring and upgrading
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We are what we repeatedly do. Excellence, then, is not an act, but a habit. -Aristotle
Leapfrog Works brings 3D to civil engineering and environmental industries Seequent (formerly ARANZ Geo), a world leader in the development of data visualisation software, has announced the release of Leapfrog Works for the civil engineering and environmental industries. Built on the trusted Leapfrog 3D implicit modelling engine, Leapfrog Works improves understanding, visualisation and communication of subsurface conditions and the interaction with infrastructure. “A long-time challenge for the industry has been the disparate processes of designing infrastructure and ground engineering, from tender to feasibility to operational phases. Working with industry leaders, we’ve developed a modelling solution that pairs a view of the geology with the engineering design, to better communicate the associated risks in projects to stakeholders,” Seequent’s General Manager of Civil and Environmental Daniel Wallace says. First introduced to the mining and minerals industry close to 15 years ago, Leapfrog 3D geological modelling solutions are now available for a range of industries to help uncover valuable insights from geological data, to allow better decision making for earth, environment and energy challenges. Leapfrog Works allows users to build 3D models from geotechnical data in days, not weeks, in an easy to use workflow. Models can be rapidly edited and new data can be easily reimported over the project lifecycle. Leapfrog enables collaboration and file sharing between multiple parties from remote locations using standard IT
set up. Powerful 3D visualisations can be readily shared to aid stakeholder communication and understanding at each stage of a project. Leapfrog Works interfaces and exchanges information with diverse digital design and Building Information Modelling (BIM) and digital geotechnical database platforms. The optional hydrogeology solution kit also integrates with flow simulation packages. Civil engineering and environmental industries are already “embracing the power of Leapfrog Works” according to Wallace. “We’ve been working alongside Mott MacDonald to identify opportunities to improve understanding and communication of ground conditions in infrastructure and groundwater projects, and support the cultural shift towards digitisation and collaborative working.” Mott MacDonald, a global engineering, management and development consultancy with over 16,000 employees in 150 countries, provided input into the development of Leapfrog Works. The company has signed a global enterprise agreement to give all geotechnical practitioners access. Leapfrog unleashes a broad range of opportunities by enabling an improved understanding of ground risks and opportunities for innovation from available historical and investigation data. O’Brien added, “The software’s 3D geological models allow our project teams to thoroughly interrogate ground data from a variety of
Upper Chelburn Reservoir - courtesy of Mott MacDonald.
sources and field observations. By interrogating data sources in this way and applying our geotechnics expertise, we have achieved more efficient design solutions with higher levels of confidence. “The outcome was targeted investigation, design, remedial and temporary works solutions. What this means in practice is illustrated by some of the projects we have utilised Leapfrog on. Since using the software, we have seen substantial reductions in the time needed to produce ground models, with associated cost savings compared to traditional approaches.” Some projects Mott MacDonald has used Leapfrog on include: • The Upper Chelburn Impounding Reservoir and Blackpool South Surface Water Separation projects for United Utilities in the UK. Highly focused solutions were developed to improve design, deliver savings and assist with communications between clients, contractors and neighbours. • A feasibility assessment of a large rock cavern network in Singapore
based on the development of complex geological and rock mass strength models. • 3D visualisations of a proposed airport in Indonesia, including handling of very high-resolution topography, drone imagery, proposed earthworks and underlying geology over a wide area. • Tunnelling projects worldwide, including the modelling of fault and deep weathering of the geology surrounding a tunnel in Indonesia that had collapsed during construction. • Construction projects such as on several NHS sites through Scotland to explain site constraints and enable clear stakeholder engagement. • Major transportation projects including the alignment of a key new transportation route in the UK to assess, categorise and visualise risk to enable refinements of the route geometry to avoid higher risk areas and the design of remedial works.
Cup holder charges phones wirelessly A cup holder that wirelessly charges electronic devices in a 3D space has been developed by ETRI in South Korea.
It is dubbed as ‘E-Cup’ and can charge multiple devices placed inside the 10 cm-wide holder at the same time, at the same rate as wired chargers, regardless of orientation or position of the devices. Shaped just like a circular cup holder, the wireless charger generates and maintains a constant and uniform magnetic field. The electric current wirelessly flows to the batteries inside the electronic devices based on the magnetic resonance.
Shaped just like a circular cup holder, the wireless charger generates and maintains a constant and uniform magnetic field.
“The newly developed technology has a wide range of potential applications including phones, although it is still in infancy. But at the same time it has a great potential to be improved,” says
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Dr. Ho-Jin Lee, the AVP of the Radio & Satellite Research Division of ETRI. While it matches the speed of wired chargers, it is less efficient; its power conversion reaches to about 60% when calculated in terms of DC-to-DC conversion systemwise. The team is working on raising that to 70% before the product can be commercialized. When this technology comes to market, people can easily and freely charge the cellular phone wirelessly. ETRI has been working on wireless charging for several years. From 2015, ETRI developed a 3D wireless charging technology based on magnetic resonance for electric bikes, drones
and smart devices. They succeeded to overcome the limitations of its 2D design and expand to 3D design to accelerate the freedom of charge without a loss of efficiency. The research team considers this a ‘generic’ technology that can be applied to all areas of industry. The market for wireless charging devices is expected to grow to nearly 1 billion USD in 2022, according to the U.S.-based firm Markets and Markets. Besides smartphone chargers, ETRI is focused on developing highly efficient and safe wireless energy transfer technologies applicable to charge multiple devices in huge spaces, such as living rooms.
If you don’t set goals, you can’t regret not reaching them. -Yogi Berra
Corrosion impact on bridge infrastructure Corrosion will affect all types of metals to varying degrees of severity and speed. Unless comprehensive management plans are developed and implemented, steel and other metals will ‘rust’ and reinforced concrete will spall and crack. Corrosion can be prevented or minimised by either ‘isolating’ the material from its environment with some sort of coating or implementing an active intervention system such as cathodic protection.
electrochemical chloride extraction and electrochemical re-alkalisation.
Bridges carry massive loads from moving vehicles which impose vibrational and other stresses onto structures. Approximately 200,000 cars and trucks cross Melbourne’s Westgate Bridge each day. The Auckland Harbour Bridge carries a similar volume of road traffic, although it is estimated that half the people crossing the bridge in the morning peak hour are on buses.
In addition to the range of repair and protection approaches, the latest concrete structures incorporate new materials and production methods which improve longevity and performance. Because of the research into concrete additives, construction companies and engineering consultancies have access to all the latest technologies that yield a suite of proactive and reactive processes and procedures to maximise the durability of reinforced and pre-stressed concrete.
The owners and managers of these assets must ensure that bridges are safe, while maintaining acceptable levels of service for the duration of the expected life of the asset. If appropriate asset management strategies are implemented, it is possible to restore an asset to near its original condition and maintain its functionality for the remaining service life and, possibly, even beyond.
The physical aspects of applying a coating or repairing a section of steel or concrete present their own challenges for owners and operators of bridges. The towers and stays of suspension-type bridges often require staff to have advanced abseiling skills so they can access them. Metal structures usually need specialised equipment and scaffolding to allow workers to safely perform maintenance work.
The two most common causes of concrete corrosion are carbonation and chloride or ‘salt attack’. The alkaline (high pH) conditions in concrete forms a passive film on the surface of the steel reinforcing bars, thus preventing or minimising corrosion.
New Zealand has approximately 2300 bridges of varying size associated with the country’s highways. A large proportion of the bridges are concrete decks on steel frames and supports or pre-stressed concrete structures, in addition to bridges made of conventional reinforced concrete and timber.
Reduction of the pH caused by “carbonation” or ingress of chloride (salt) causes the passive film to degrade, allowing the reinforcement to corrode in the presence of oxygen and moisture. Leaching of the alkalinity from concrete also lowers pH to cause corrosion of steel reinforcement. Stray electrical currents, most commonly from electrified traction systems, can also breakdown the passive film and cause corrosion of steel reinforced concrete and prestressed concrete elements. As reinforcing bars rust, the volume of the rust products can increase up to six times that of the original steel, thus increasing pressure on the surrounding material which slowly cracks the concrete. The most exposed elements usually deteriorate first, and it may take 5 to 15 years for the effects of reinforcing steel corrosion to become visibly noticeable. Cracks eventually appear on the surface and concrete starts to flake off or spall. There are remedial options to stop corrosion of reinforcement. These include cathodic protection,
The iconic Auckland Harbour Bridge is a steel truss and box girder design. For many years, the maintenance of this bridge involved a continuing program of painting, where applicators started at one end and when they got to the other end, went back to the beginning again. According to Mandeno, this has changed. “Old oil-based paints became very brittle and could crack then delaminate,” he said. “In the late 1990s they changed to a moisture cured urethane which gives approximately a 20-year lifespan before the bridge needs to be repainted.” Many roads throughout the region are being upgraded to allow for longer and heavier trucks. All road authorities face similar challenges when managing the risks of ageing infrastructure designed to a much lower standard, whilst still providing access for
modern heavy vehicles. Short span structures like culverts are only exposed to one axle group at any one time whereas longer span structures built during the past century are now required to carry substantially more load than they were originally designed for. In New Zealand, many of the older timber rail bridges nearing the end of their useful life are being replaced by ‘weathering steel’ girder bridges which should provide a longer operational lifespan. Officially known as “structural steel with improved atmospheric corrosion resistance,” weathering steel is a high strength, low alloy steel that, in suitable environments—those not exposed to high levels of salinity and pollutants—may be left unpainted allowing a protective rust “patina” to form and minimise further corrosion. Alloy components such as copper, chromium, silicon and phosphorus form less than two per cent of the steel but it retains appropriate strength, ductility, toughness and weldability so that it can be used for bridge construction. All structural steel rusts at a rate determined by the amount of moisture and oxygen to which the metallic iron is exposed. As this process continues, the oxide (rust) layer becomes a barrier restricting further ingress of moisture and oxygen to the metal, and the rate of corrosion slows down. The rust layer that forms on most conventional carbon-manganese structural steels is relatively porous and flakes off the surface allowing a fresh corrosion cycle to occur. However, due to the alloying elements in weathering
steel, a stable rust layer is produced that adheres to the base metal and is much less porous. This layer develops under conditions of alternate wetting and drying to produce a protective barrier which impedes further access of oxygen and moisture. It is possible that if the rust layer remains sufficiently impervious and tightly adhering, the corrosion rate may reduce to an extremely low one. It can be relatively simple to calculate loads and stresses on bridges when weights are distributed evenly across the structure, but road authorities also must deal with heavy and over-dimension loads. Movement of such vehicles requires special planning as there are some roads and bridges that are physically unable to support massive weight concentrated into a small area. Modern technology can assist in managing some structures sensitive to vibration from heavy vehicles. Electronic sensors can be set up to monitor vibrations and other stresses on structures so that many data points are logged that can be downloaded for analysis. Sensors can also be connected to remote cameras that are triggered whenever a threshold vibration level is exceeded to identify which vehicles are producing these effects. It is strongly recommended that a durability plan be developed which then becomes a critical tool in supporting an overarching asset management strategy. The plan should clearly outline likely corrosion-related risks and agreed mitigation approaches as early as possible in an asset’s lifecycle, ideally during the planning and design stage.
Centre pylon of the Makatote viaduct in New Zealand prepared for restoration.
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If you focus on results you’ll never change. If you focus on change, you’ll get results. Jack Dixon
Environment and agriculture can both benefit from trade agreement The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) trade agreement has the potential to transform the agricultural sector and at the same time benefit the environment, agribusiness expert Dr. Nic Lees of Lincoln University says. However, he added, the public needed to be convinced of that.
advantage over the USA beef in the high value Japanese market.
and will have benefits to all New Zealanders.
The CPTTP is the re-negotiated Trans Pacific Partnership after the USA withdrew, and is a free trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Negotiations have concluded between the countries but it is yet to be ratified by New Zealand. The TTP had met some public and political opposition.
“It will encourage New Zealand beef farmers to target high value beef cuts in the Japanese market rather than export commodity hamburger beef to the USA,” Dr. Lees added.
“In fact, the greatest benefit will be to the regions and to agricultural industries that are already addressing their environmental footprint.”
The CPTTP could change the sector from relying on low cost commodities to a focus on high value exports intimately connected to a pristine environment, Dr. Lees said. “Where New Zealand producers are exporting high value branded products we see an associated increase in concern for the environment. These producers know that they need to meet consumers demand for products to be produced ethically and sustainably.” He said tariffs on New Zealand beef exports to Japan will drop from 38.5% to 9%, saving the industry $25 million. “This reduction in tariffs will give New Zealand and Australia a competitive
Tariffs on kiwifruit exports to Japan, the largest importer of New Zealand kiwifruit, will be eliminated. Tariffs on wine exports to New Zealand’s fourth largest market Canada will also be removed. Overall the CPTPP could provide approximately $222m of tariff savings each year. However, he said, the public need to be convinced of these benefits. “There is suspicion that benefits of the agreement will not be shared equally across the economy and many will see it as only benefitting already wealthy farmers who are damaging the environment,” Dr. Lees said. “For the public to get behind such a deal New Zealand agriculture needs to demonstrate that increased agricultural production won’t have further impacts on the environment
He cited the example of the wine and kiwifruit industries. “They are committed to minimising their environmental impact not because of regulations, but because they market high value branded products and their customers demand that these products are produced sustainably.” This is contrast to sectors such as the dairy industry which export primarily commodity products that are used in ingredients. “As a result, few retail customers are aware that New Zealand milk products are present in the final product and there is little market incentive for dairy farmers to respond to customers or the general public’s concerns over how the product is produced. “There is no significant premium for New Zealand commodity dairy exports therefore farmers perceive reducing
the environmental impact of their farming practices as a cost rather than a market advantage.” He said the answer to ensuring that improvement in market access for our agricultural products truly benefits all New Zealanders is for the agricultural sector to move away from commodities to producing high value branded exports. “This will provide incentives for farmers to meet higher environmental standards not reluctantly as a result of public pressure and regulations but because it gives them a market advantage. “If the public can be convinced that the benefits to the agricultural sector can contribute to improving the current environmental challenges as well as regional economic growth then the CPTPP can be seen not only as a win for global collaboration but a win for all New Zealanders.”
Lincoln part of Australian horticultural innovation Lincoln University is extending its expertise offshore as part of a unique Australian programme cultivating its next horticultural industry leaders.
Australia to be part of the course’s first year in 2017 and envisages more Lincoln staff making the journey this year.
Its Faculty of Agribusiness and Commerce is involved in teaching the Masterclass in Horticultural Business course at the University of Tasmania.
“It’s an exciting development to be part of,” she said.
Lincoln’s role is led by Professor Alison Bailey and includes collaborating with the world’s top agricultural university, despite mostly staying put in New Zealand.
The course is the first of its kind in Australia for the horticulture industry and is specifically designed for upcoming leaders in the industry.
Professor Bailey made the trip to
It is being developed in Tasmania in partnership with international leaders in horticulture – Horticulture Innovation Australia, Wageningen
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Academy (part of Wageningen University, ranked number one globally in Agriculture) and Lincoln University. Professor Alison Bailey said Modules which Lincoln experts contribute to include horticultural management, financial management, horticultural marketing, global trends and international business, innovation and entrepreneurship, and business development and strategy. The course is offered through flexible online delivery, with three face to face intensives, or workshops, and students
are tasked with developing a strategic plan for their own company. Students go online to listen to pre-recorded mini lectures of between 8-15 minutes duration. The lectures are supported by guided reading material, online mini-quizzes, and assignments to be completed by the student usually offline and then sent in electronically The course reflects Lincoln University’s focus on collaborating with other institutions.
Destiny is not a matter of chance, it is a matter of choice. -William Jennings Bryan
Food production system ‘unsustainable’ New Zealand agriculture needs to become more sustainable to capitalise on the clean, green, unspoiled image the country has overseas. That’s the view of Sir Charles Godfray, director of the Oxford Martin School at Oxford University in the UK, a world-leading centre of research into addressing global challenges. Sir Charles recently visited New Zealand to speak at a Bio-Protection Research Centre symposium, and give a public lecture on gene-drive technologies to control insects that transmit disease. “By the middle of the century there will be about 10 billion people. Demand
for food will increase both because of the growth in population and because an increasing number of people will be richer and demanding better-quality diets – including more meat and dairy.
and there was increasing pressure on water resources.
“But calorie for calorie, food from animals requires more resources to produce than food from plants, and it would be impossible to satisfy the demands of 10 billion people if they all had the diets we enjoy in the rich world. Something would have to give.”
“One sees the demand for meat and dairy going up unchecked and putting so much pressure on the environment that it undermines our capacity to produce food in the future.”
Added to that there are pressure on food supply: climate change was already leading to more extreme effects such as droughts and floods,
Given these challenges, there were two possible futures for the livestock sector, Sir Charles said.
The other possible future was that people individually ate less meat and dairy, but demanded premium-quality products: safe and nutritious, and produced under the highest environmental and animal welfare
standards. “It is natural that talk of eating less meat and dairy is concerning in a country where so many livelihoods depend on livestock,” Sir Charles said. “My mother grew up on a dairy farm near Kaikoura so I’m particularly conscious of this. But ignoring the challenges ahead risks the future of the industry. “Sustainable diets and sustainable production must be given much higher priority”.
New $13m infant formula can facility in Christchurch International packaging manufacturer Jamestrong has opened a state-of-art infant formula can manufacturing facility in Christchurch as part of its NZ manufacturing investment strategy. Jamestrong ANZ Managing Director Alex Commins said the Christchurch facility in Hornby will supply New Zealand milk powder to the
burgeoning Chinese infant formula market. “In excess of 20 million babies are born each year in China. Producing 16,000,000 infant formula cans per year, the new Hornby facility will contribute to New Zealand’s reputation as a global leader in dairy exports and provide jobs for local workers.
“It is imperative the canning facilities are in close proximity to the raw product and associated services. Christchurch is ideally located, close to NZ dairy producers and processors,” Alex said. The Hornby facility is the second of three high-care infant formula facilities Jamestrong is developing as part of
its commitment to manufacturing in Australia and New Zealand. “Kyabram in regional Australia was the site of the first high-care infant formula can manufacture. A third facility in Auckland is in the planning phase and expected to be rolling cans off the line by February 2019,” Alex said.
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NZ Manufacturer March 2018
Obstacles can’t stop you. Problems can’t stop you. Most of all, other people can’t stop you. Only you can stop you. -Jeffrey Gitomer
Compressed air expert lays foundation for further growth Future investments, awards and new business models – the Bielefeld-based family-owned company BOGE can look back on a year full of high points. In 2017, the company was in step with its international customers once again with its advanced compressed air solutions. One highlight of the year was the opening of the smart factory at the head office in Bielefeld. Since September 2017, high speed turbo technology has been in series production there. The new “continuous improvement programme” was awarded a prize. This progressively enhances the compressors via ongoing further development in customer deployment. The mechanical engineering company is the first to bring this solution onto the market. Classic maintenance is therefore a thing of the past. BOGE has been synonymous with forward-looking compressed air solutions through intelligent engineering for 110 years. Its anniversary year saw the opening of the smart factory, and the company creating the preconditions to fulfil the high demands of individual customer compressed air solutions even better. In the digitalised factory, people, component and machine communicate
with one another to produce the parts for the prizewinning BOGE HST high speed turbo compressor, specifically for the customer and to zero error quality. “Achieving this production line represented a major challenge for us”, says Wolf D. Meier-Scheuven, the managing partner. “Thanks to the advanced production technology we are now in a position to manufacture in many versions and with process reliability. This is innovative and demonstrates our response to the continuously increasing requirements of our customers.” In 2017, BOGE invested more than five per cent of its turnover in research and development; around twice as much as the average invested by companies in the mechanical engineering sector. “We increased turnover and market shares, but due to our long-term investments, we suffered calculable losses in earnings”, explains BOGE CEO Thorsten Meier. The smart factory alone cost the compressed air company around two million Euro. “We have thereby created the foundations for further growth”, says Meier.
BOGE managers look towards the future with optimism (from right to left: Wolf D. Meier-Scheuven, Michael Rommelmann, Gavin Monn, Ricarda Fleer and Thorsten Meier.
Best Industrial 4.0 Business Solution
The leading German business newspaper honoured the concept of continuous improvement for the high speed turbo compressor as the Best Industrial 4.0 Business Solution. With the help of data analysis and simulation, the compressed air experts are constantly further developing the hardware and software of the machines tailored to the customer.
The prize for the forward-looking continuous improvement programme from the Handelsblatt demonstrates that BOGE is on the right track.
The compressors are therefore continuously improved in operation. The result: A highly efficient compressed air supply that is completely adapted
to current requirements and extremely efficient in terms of energy – which reduces operating costs. “With our continuous improvement programme, we have taken a step forward in the race for the best digitalisation strategies. Together with the BOGE high speed turbo compressor and the smart factory, we have reached the next level of innovation and can further extend our strong position as a highly specialised family-run company that is successful worldwide”, says Wolf D. Meier-Scheuven, CEO of BOGE.
Exceptional cooling to ensure best possible welding results When welding, it is not only seam quality that matters, speed plays a significant role too. Both of these help the welder to work more efficiently and so reduce costs. With the modified TIG process, ArcTig, Fronius has developed an innovation for mechanised joint welding that addresses these requirements. A special welding torch allows the TIG arc to be focused in a targeted manner and its energy density is significantly increased. Users can weld up to ten-millimetre-thick, high-alloy sheets and pipes without extensive seam preparation, to an exceptionally high quality standard and much quicker. The ArcTig welding process is based on the principle of tungsten inert gas welding, or TIG welding for short. In this process, an arc burns between a non-melting tungsten
NZ Manufacturer March 2018
This reduces the combined resistance, producing a soft, wide arc. The inert protective gas shield means there are no chemical reactions with the liquid weld pool. This enables users to produce a perfect weld-seam appearance without tempering colours and spatter as well as the best weave pattern. TIG welding is suited to a variety of different materials and applications, including tricky materials like titanium. The ArcTig welding process is designed for applications in container and pipeline construction, in the manufacture of turbines and the construction of special machines, cranes and tanks. The key innovation here is the optimised welding torch with an electrode clamping system, which enables the electrode to be cooled right to the tip. This increases the combined resistance and creates a high arc voltage. Electron emission now takes place over a small area but at an extremely high density.
The ArcTig welding process from Fronius achieves high welding speeds and outstanding weld seam quality.
electrode and the metallic workpiece in an oxygen-free, reactionless gas atmosphere. The current flow heats the electrode, resulting in an electron flow.
This makes the arc narrower and more targeted, allowing the user to achieve exceptional weld seam quality. Another advantage of the cooling is that it prevents overheating of the electrode during welding, providing increased arc stability and ensuring a longer service life and improved ignition. Users can upgrade all TIG power sources from Fronius above an output of 220 amperes to the ArcTig process with ease. The only equipment required is the new welding torch and an additional heat exchanger to provide the cooling capacity and the required temperature stability. ArcTig is also available as a complete system. Shorter processing times lower filler metal costs
The focussed and high-pressure arc means the ArcTig can be used to weld components in one layer to a material thickness of up to ten millimetres. In conventional TIG welding, several layers are often needed. Additionally, it is frequently the case that users no longer need to do time-consuming preparation work on parts. As there is no gap during seam preparation, no weld pool support is required for the
ArcTig process. This cuts down on rework to a large extent, since the weld seam is raised to a minimal degree and there is very little distortion due to the reduced heat input. This enables users to accelerate processing times considerably, while the welding process also permits higher welding speeds. What’s more, material costs are lowered as the weld seam volume is reduced. The ArcTig process also impresses in terms of operation: because it is very similar to TIG welding, users do not have to adjust to a new process and can weld immediately without carrying out any time-consuming teaching-in. This minimises the need for training and prevents incorrect operation by the welder, as just a few parameters need to be set. Users can make use of standard TIG electrodes that are quick to change and can easily be re-ground as necessary. The new electrode clamping system clamps the electrode over a large area. To make the weld seam more accessible and enable the arc to be manipulated better, the free end of the electrode can be adjusted as desired depending on the requirements.
Perseverance is the hard work you do after you get tired of doing the hard work you already did. -Newt Gingrich
Manufacturing shows solid growth to end 2017 Manufacturing showed solid growth in the December quarter of 2017, with total manufacturing improving 1.8% on December 2016, while manufacturing excluding meat and dairy saw an impressive 3.2% growth on the December 2016 quarter. “This was a great way to end 2017 for manufacturing, which when excluding meat and dairy, experienced consistent growth throughout 2017 on the previous year in Statistics New Zealand’s Economic Survey of Manufacturing, released yesterday. This ranged from a low of 1.4% growth in the September quarter, to a high of 3.9% growth in the March quarter.” says Mr Dieter Adam, CE, The Manufacturers’ Network. “A range of subsectors of manufacturing experienced growth on 2016 in the December. Chemical,
polymer, and rubber product manufacturing showed a 5.2% growth on the same quarter in 2016, and wood and paper product manufacturing saw an increase of 3.3%.” he says.
up during 2018. There are some signs that the economy as a whole could be starting to cool, for example, the latest Truckometer data showing a fall in light and heavy traffic in February.
“The high-value sector of transport equipment; machinery and equipment manufacturing experienced an increase of 3.1% on December 2016, coming off the back of an impressive result in the previous quarter – in September 2017, this sector increased 7.4% on the same quarter in 2016.
“Manufacturing has the potential to provide some much-needed growth if the rest of the economy does start to cool off somewhat.
“These results are encouraging, and we will need to see how they will hold
“Manufacturing remains a vital contributor to New Zealand, in terms of the economic growth, exports it provides, and in the employment, it brings to our people. We hope the new Government will continue to
show a willingness to work with our industry to strengthen it and build on the vast opportunities we have into the future.” says Mr Adam.
Gough Group appoints new CEO Gough Group has announced the appointment of Liz Ward as its Chief Executive, following a highly competitive recruitment process. Ms Ward has previously held roles as CEO of Kennards Hire based in Sydney, Executive Director Customer Services for Sydney Trains, CEO of CentrePort, and significant executive positions in Telstra, Spark, and EDS. She is an Independent Director on the Board of Moana Fisheries and was previously Director of the New South Wales Telco Authority.
The Gough Group has a history stretching back nearly 90 years and is recognised as one of New Zealand’s leading heavy equipment, materials handling, power system, and truck and trailer parts suppliers. Representing premium brands such as Caterpillar, Palfinger, Hyster and Sany through more than 60 branches across New Zealand and Australia,
and supported by 950 dedicated employees, the Group delivers vital support and service across all sectors of the New Zealand economy. Ms Ward takes up the role of CEO in March, based initially in the Hornby, Christchurch Head Office for the Group, before moving to Auckland later this year.
Provincial growth fund The launch of the Provincial Growth Fund has the potential to boost the performance of the regions as economic opportunities are generated through investment, BusinessNZ chief executive Kirk Hope says.
“Getting more people into education, training and employment in the regions
“Lifting productivity and growing jobs in regional New Zealand and strengthening local communities would be positive for the economy as a whole.
Mr Hope added it was comforting to see a robust process in place for distribution
would further help address skills shortages in critical industries,” Mr Hope said.
of the Fund, with disbursements over $20 million needing Cabinet approval.
continued from page 1
Why a highly-skilled workforce is critical for success valuable insight into the workforce
Recruit top talent at Emex
undertaken trades training at MIT.
start their career,” Kingsford says.
challenges people are facing every
Competenz is teaming up with the Manukau Institute of Technology (MIT) to match employers with keen young jobseekers at Emex.
After a series of six-minute, one-on-one interviews, the employers and students each decide if they want to find out more about each other, and job opportunities may arise.
day,” Kingsford says. “Because we know the sector well, we can design workforce development solutions to help businesses realise both immediate and long-term gains.”
Manufacturing and engineering companies looking for new recruits will be paired up with secondary school pupils and students who have
“If you’re looking for new staff, this is a great opportunity to meet talented and motivated young people ready to
qualifications Competenz offers are eligible for the government’s new fees-free policy. This means the costs usually paid by employers, apprentices and trainees in the first two years will be now
NZ Manufacturer March 2018
It doesn’t matter if you try and try and try again and fail. It does matter if you try and fail,and fail to try again. -Charles Kettering
We should learn to work with robots (and not worry about them taking our jobs) David Tuffley Senior Lecturer in Applied Ethics and Sociotechnical Studies, School of ICT., Griffith University We have all heard the dire predictions about robots coming to steal our jobs. Some would even have us believe these silicon bogeymen are coming to kill us. It plays straight into people’s darkest fears about technology.
Why such a big difference? In truth, no one knows how many jobs will be lost and found in the age of Artificial Intelligence (AI). The situation is too complex for simple answers.
When futurists talk about things that haven’t happened yet, they are free to parade educated guesses as fact. But before we take their word for it, we might remember the adage:
Variations in predictions can be likened to the parable of the five blind men encountering an elephant. By touching different parts of the elephant’s body, each came to a different conclusion as to what the beast is.
… in God we trust, all others bring data.
Technology anxiety is nothing new
In a recent article, the MIT Technology Review tabulated the results of “every study we could find on what automation will do to jobs”. The results show that the expected impacts depend on what you measure.
Worries about the impact of technology on society have a long history.
Many predictions, little agreement Of the 19 reports considered in the review, there was enormous variation. Some predicted that a few million jobs would be replaced, while others spoke portentously of tens or hundreds of millions over similar time frames. Some were decidedly upbeat, others quite gloomy. One futurist went so far as to forecast that a billion jobs will be lost to automation by 2022. Contrast this with the more sober prediction from the research and advisory group Gartner of 1.8 million jobs lost by 2020, but with 2.3 million created in the same period – a net increase of 500,000 over the next two years.
In the 18th and 19th centuries, the rapid expansion of disruptive technologies during the Industrial Revolution gave rise to the same anxieties as those being expressed today. Trades were automated to produce greater economies of scale, but job losses were more than offset by the new jobs subsequently created. Meanwhile, trades like pottery, weaving and metalwork that were “lost” to automation 200 years ago are still being done by skilled craftspeople today. More recently, when personal computers found their way onto people’s desks in the 1980s, the typing pool became redundant. I recall the lamentations then of the newspapers, TV and talkback radio. But in time, the overall number of jobs went up because of the new jobs
created in the fledgling IT industry. Today there are dozens of technology job categories, none of which existed in the typing pool days – jobs in computer hardware, programming, content production, web design, security, big data, sales and marketing, and artificial intelligence to name a few. And the former typists? Their skills were in more demand than ever, because keyboards are still the way humans communicate with computers.
AI is only an extension of us AI is often spoken of as a separate entity from people, and sometimes seen as a dangerous adversary. The reality is that it is merely a tool created by humans – it only does what we tell it to do and nothing more. What we have is “narrow AI”, only suited to very particular tasks. Autonomous “general AI” that is superior to the spectrum of human intelligence is many decades away. The “narrow AI” GPS on my smartphone is much better at navigating than I am. It extends my ability to go places almost miraculously. But there’s no reason to feel threatened. It is only smarter than me in that one ability. And it is not at all likely to say “I’m sorry Dave, I’m afraid I can’t do that” like Hal refusing to open the pod bay doors in film 2001: A Space Odyssey.
2001: A Space Odyssey Likewise, AI can greatly improve
people’s competence in the workplace. In the first recorded case of an AI saving someone’s life, it was the combination of human doctors and a diagnostic AI that succeeded where the human doctors alone had failed. The obvious advantages of enhancing human intelligence with AI have given rise to the hybrid known as a modern centaur. The concept was illustrated by chess grandmaster Garry Kasparov, who observed that the best players are not computers alone, but human intelligence augmented with AI.
Benefits out-weigh the harm Historically, fears about technology have largely proven unfounded, at least in terms of the benefits outweighing the harm, if not in other ways. Our challenge is to maximise the benefits and minimise the harm. What skills will we need for future employment? These would be the same skills that humans have always excelled at – critical thinking and problem solving, good communication and teamwork, leadership, initiative, creativity. And of course, the willingness to leverage the current technology. Futurists tend to assume that if a job can be automated, it will be automated. But that is certainly not true. AI will automate some jobs, particularly the ones that people don’t want to do – everything from sewer reconnaissance to repetitive factory work. Manual welding, for example, can produce highly toxic fumes – a prime candidate for automation. But some jobs will always be done by people and the reasons can vary greatly, from economic, social and nostalgic reasons, to the fact that some jobs are simply not practical for robots to do. When I go to the doctor, I want a human sitting across from me. I don’t want a holographic doctor who demands to know the nature of my medical emergency.
NZ Manufacturer March 2018
Not everything that can be counted counts, and not everything that counts can be counted. -William Bruce Cameron
How to hire during the supply chain talent shortage Wayne Fry Specialist Recruitment Consultant of Supply Chain, Operations & Procurement across New Zealand The talent shortage, both in NZ and internationally is well-documented, and todayâ€™s candidate market is a tough one. Attracting top talent can often feel like an uphill battle when your business is competing with many other companies for the same talent. Opportunities in Supply Chain are plentiful, and the best candidates are often presented with a number of different options and often receive multiple employment offers. In recent months we have seen a demand for supply and demand planners as S&OP, IBP and optimal supply chain performance are all becoming increasingly important for businesses. Increased demand for supply chain professionals, in what was already a challenging market, is creating headaches for HR professionals and hiring managers. Online advertising is becoming increasingly less effective and, on some occasions, hiring managers are not able to find a single candidate who they feel is worthwhile meeting for an interview.
People are interested in working for attractive company brands. Previously paying an attractive salary was enough to entice people away from their current employer. Times have changed, and candidates are now looking to join businesses who align with their ambition, ethics, and interests. What is your employer brand? What is your company culture, what is your vision, the company interests and how does this relate to employees and prospective employees? What sets your business apart? Having a positive company culture that offers flexible work arrangements, time off for study, training & development, internal promotions or career succession plans and family-friendly policies is something that you want to share with prospective employees. Similarly, a business with interests in charities, or society, is something that is likely to attract people to the company brand. When the wider community notices your company taking part in supporting charities, or community events, people will be more attracted to you as an employer of choice.
While there is no sure-fire way to ensure a successful hiring process every time, here are some key solutions we have recently seen companies turn to with great success:
Make sure you are advertising what your company does, what it stands for and what it means to be an employee of the business.
The local talent pool is limited. The
relative size of the market, coupled with an increasing demand for supply chain professionals is seeing demand outstrip supply. Some businesses are turning to the reinstatement or introduction of graduate schemes and the development and promotion of internal candidates to alleviate the talent shortage.
While the recruitment process is generally a little lengthier (typically only by a couple of weeks) and candidates can decide not to relocate/ be denied a work visa (this is unusual); in my experience candidates are committed to a move and show a great deal of commitment and loyalty to their employer.
This can be a highly effective strategy â€“ though is unlikely to offer a quick fix as graduate schemes take time to provide highly skilled specialists and leaders to a business. If companies are struggling to find talented people in the local market, one strategy which is delivering success is to undertake a global search. Whilst not relevant on every occasion, this can be a highly effective method of securing highly skilled candidates.
Overseas candidates can bring a great deal of invaluable experience and a different way of seeing things. In my opinion, they are an often overlooked and underappreciated source of talent.
New Zealand remains an attractive destination for skilled migrants and on balance, salary packages and the standard of living compares well internationally.
Meanwhile, many businesses remain reluctant to consider international applications â€“ typically assuming that international experience is not as relevant as local experience or that the hiring process will be too difficult with securing employment visas, waiting for visas to be granted and assisting the candidate in relocating to NZ.
Grads are back in vogue. The Global Financial Crisis threw grad schemes
continued on Page 30
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NZ Manufacturer March 2018
Knowing is not enough; we must apply. Willing is not enough; we must do. -Goethe
Analytics leaders and data scientists
wrestle with AI challenges in 2018 Top analytics predictions for 2018 foresee businesses grappling with artificial intelligence (AI), and lack of skills being a barrier for AI success, according to the International Institute for Analytics (IIA), a world leading independent research and advisory firm that helps companies improve business performance using the power of analytics. Data professionals will also see the dawn of the post-algorithmic age, where access to algorithms is a commodity with huge implication for analytics workers. Nick Hayward, head of analytics at NOW, the New Zealand consulting arm of data warehousing giant WhereScape, says the predictions from IIA spotlight the rapid pace of change.
and analytics market.
Hayward says whilst automation provides the springboard for businesses to make cloud migration easier, AI will be a key talking point for 2018.
The big issue facing organisations looking to use AI to get ahead will be the lack of skills available to turn visions into reality. This is not an insignificant problem given the relative immaturity of the AI toolsets currently available in the market today. The key, as IIA sees it, is not to give into the AI hype and push for too much too soon; don’t over promise and under deliver.
AI’s value has been proven across a wide range of use cases including language processing, image and video
The big issue facing organisations looking to use AI to get ahead will be the lack of skills available to turn visions into reality.
NOW has partnered with IIA as it believes the company’s approach to analytics benchmarking will be as successful here as it has been in the US. The move makes sense, given that NOW already calls many leading New Zealand organisations its customers (Lotto NZ, Lumino Dentists and the University of Auckland to name a few) and can complement IIA’s services with its deep knowledge of the New Zealand data
analysis, and predictive analytics, says the IIA report, which gathers viewpoints from over 200 leading analytics practitioners, executives and
The report also notes that analytical software and the cloud will become fully intertwined with almost every commercial vendor or open source project moving to support the cloud. This will give companies more freedom to mix and match to find the right balance for their particular needs. Discovery and innovation will be helped by compelling cloud cost structures that make experimenting
with different affordable.
Finally, the report notes that the job title “data scientist” has been widely adopted and inconsistently assigned to various different roles tied to analytics. IIA predicts that confusion will increase in 2018 as to what role this title describes and encompasses. This will make it increasingly important for those seeking to hire data scientists to judge a person’s analytics capabilities based on skills proven in past work over reported job titles or project descriptions alone.
Continued from page 230
How to hire during the supply chain talent shortage Online advertising is becoming increasingly less effective and, on some occasions, hiring managers are not able to find a single candidate who they feel is worthwhile meeting for an interview.
The talent shortage, both in NZ and internationally is well-documented, and today’s candidate market is a tough one. Attracting top talent can often feel like an uphill battle when your business is competing with many other companies for the same talent.
While there is no sure-fire way to ensure a successful hiring process every time, here are some key solutions we have recently seen companies turn to with great success:
Opportunities in Supply Chain are plentiful, and the best candidates are often presented with a number of different options and often receive multiple employment offers.
In recent months we have seen a demand for supply and demand planners as S&OP, IBP and optimal supply chain performance are all becoming increasingly important for businesses.
People are interested in working for attractive company brands. Previously paying an attractive salary was enough to entice people away from their current employer. Times have changed, and candidates are now looking to join businesses who align with their ambition, ethics, and interests. What is your employer brand? What is your company culture, what is
Increased demand for supply chain professionals, in what was already a challenging market, is creating headaches for HR professionals and hiring managers.
NZ Manufacturer February 2018
your vision, the company interests and how does this relate to employees and prospective employees? What sets your business apart? Having a positive company culture that offers flexible work arrangements, time off for study, training & development, internal promotions or career succession plans and family-friendly policies is something that you want to share with prospective employees. Similarly, a business with interests in charities, or society, is something that is likely to attract people to the company brand. When the wider community notices your company taking part in supporting charities, or community events, people will be more attracted to you as an employer of choice. Make sure you are advertising what your company does, what it stands for and what it means to be an employee of the business.
Global search The local talent pool is limited. The relative size of the market, coupled with an increasing demand for supply chain professionals is seeing demand outstrip supply. Some businesses are turning to the reinstatement or introduction of graduate schemes and the development and promotion of internal candidates to alleviate the talent shortage. This can be a highly effective strategy – though is unlikely to offer a quick fix as graduate schemes take time to provide highly skilled specialists and leaders to a business. If companies are struggling to find talented people in the local market, one strategy which is delivering success is to undertake a global search. Whilst not relevant on every occasion, this
Entrepreneurship is neither a science nor an art. It is a practice. -Peter Drucker
Gender Diversity Janet Faulding, General Manager of SEEK New Zealand.
Gender diversity has become a strategic imperative for many organisations across New Zealand as evidence continues to show the benefits it brings to the bottom line. While a shift in workplace culture may assist many to achieve their diversity goals, it’s also valuable to understand what men and women look for when choosing their next role. SEEK’s Laws of Attraction research shows that women and men share the same top priorities. Salary and compensation ranks number one, followed by work-life balance and career development opportunities. However, dig a little deeper and variances emerge. Women and men place a different emphasis on key elements within these priorities. Men view salary and compensation as more important than women, however the difference is not significant (16.5% versus 15%). When it comes to ‘must have’ elements, men are significantly more likely to view base salary (71% versus 66%), insurance (20% versus 9%) and a company car (14% versus 5%) as a ‘must have’. Despite women having less retirement income on average than their male counterparts, men are twice as likely to view additional superannuation as a ‘must have’ and one in two women would be ‘delighted’ by it. While salary and compensation is the top driver of attraction for both genders, women are less likely to cite certain elements as a priority. This may imply that women are less likely to negotiate or to be comfortable discussing these elements during the interview process. Hirers looking to alleviate the gender pay gap may wish to consider this. Work-life balance is the number two driver of attraction for both genders (14.1% female versus 13% male). However, women are significantly more likely to consider certain elements as a ‘must have’, especially those that focus around leave and reduced or structured hours. For example, they place a greater emphasis on the ability to buy annual leave or take unpaid leave (16% versus 12%); the ability to work part time (16.5% versus 5%); and regular working hours (14% versus 9%). Meanwhile, men tend to more importance on the way is structured. They are more to view interstate / overseas (5% versus 3%) and rostered schedules (4% versus 2%) as a
place work likely travel work ‘must
have’. In fact, one in five women would be put off by rostered schedules and one in three would be put off by interstate / overseas travel. Although women place more emphasis on work-life balance, it is a high priority for both genders. Compensation for overtime, flexibility and the ability to work from home or remotely are equally important to both and present opportunities to ‘delight’ at least one in two. Career development is the number three driver of attraction for both genders (12.5% male versus 10.5% female). While both view some elements, such as mentioning programs, on-the-job skills development and in-house training, as a ‘must have’ or an opportunity to ‘delight’, men place more emphasis on promotion opportunities (a ‘must have’ for 36% versus 29%), external training programs (20% versus 15%) and sponsored study (11% versus 7%). Despite these differences, career development is a key driver for both men and women and employers would be wise to communicate the genuine opportunities available both on-the-job and within their broader organisation. In the area of additional benefits, women are more likely than men to view paid maternity / parental leave as a ‘must have’ (28% versus 19%) while men are more likely to prioritise mobile phones or laptops (27% versus 13%). For company reputation, women are significantly more likely to view support for diversity as a ‘must have’ (34% versus 26%) while men are more motivated than women by an excellent occupational health and safety reputation (22% versus 17%). Gender diversity is good for business and while men and women want many of the same things when it comes to their next role, their priorities are nuanced. To attract the best of both, it pays to understand the key elements that drive their employment choices.
Industry Spotlights Manufacturing, Transport & Logistics
Top drivers of attraction 1. Salary / Compensation 2. Work-life balance 3. Job security
Gender Female: 20% Male: 80%
Did you know? Job security is a key priority for manufacturing, transport and logistics candidates, with a permanent role likely to be a ‘must have’.
Overview Salary and compensation is the key driver of attraction for candidates in the manufacturing, transport and logistics industry. However, it takes more than money to get them across the line. While candidates rank salary and compensation as number one (16.6%), they are significantly more attracted to some areas of compensation. Bonuses and profit share arrangements, for example, are a greater driver for these candidates than for the total sample group, with three in five describing this as something that would ‘delight’ them. Work-life balance is the second greatest driver of attraction (12.7%) for these candidates, however their priorities differ from the total group in a number of areas. For example, they are much less likely to view regular working hours and the ability to work from home as a ‘must have’. In contrast, one in three say compensation for overtime is a ‘must have’ and a further one in two would be delighted by this benefit. Job security comes in third place and while their priorities in this area are similar to the total sample group, stability is clearly a vital factor. More than one in two state that a permanent role is a ‘must have’ and a further two in three are delighted by low staff turnover. “Candidates in this industry are driven by the knowledge that they are working toward full time permanent employment and being paid market wages while that happens. Also, they like to know that the company they work for will support them in ongoing training relevant to their skills.” - Andrew Berry, Managing Director, Superior Personnel. Employers that focus on career development have an opportunity to delight manufacturing, transport and logistics candidates with in-house training, promotions and on-the-job skill development a ‘must have’ for one in three respondents. When it comes to company reputation, candidates in this industry are more drawn to companies with an excellent track record for OH&S – this is considered a ‘must have’ for one in three. New Zealand owned companies are a source of delight for two in five while companies with well-known products and services delight one in three. Candidates in this industry are also much more likely to view profitability as a ‘must have’ in a prospective employer. This may be linked to their strong desire for job security, so employers may wish to promote their strength and tenure within the industry to attract top talent. Candidates in this industry are significantly more likely to be from the Generation X and Baby Boomer demographics. They are also much more likely to have children in the household. Although they are significantly less likely to be tertiary educated they are more likely to be higher income earners – more than $70,000 a year.
NZ Manufacturer February 2018
Manufacturers focused on
Published on Mar 14, 2018