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September 2018


COMPANY PROFILE MJH Engineering, Lower Hutt.


WOMEN IN ENGINERING Helen Trappitt, Lewis Bradford Consulting Engineers, Christchurch.


REAR VIEW AI can’t solve everything.

Parents urged to take trades seriously Parents and teachers of school leavers need to start taking careers in trades seriously as teens are missing out on genuine opportunities to avoid student loans and get ahead. Fiona Kingsford, Chief Executive of industry training organisation Competenz, says while around 60,000 teenagers leave school each year, just four percent of them go straight into trades training. “We need to triple that. More than half of New Zealand’s apprentices and trainees have already been to university or another tertiary institute and many of them have clocked up student debt. But they could have avoided that debt altogether and started an apprenticeship straight away. “Research shows that because apprentices start earning earlier, they can buy a house earlier and pay off a mortgage earlier, which puts them financially ahead of university graduates for most of their working lives, and at about the same financial position when they’re ready to retire. “Our mission is to educate not only school leavers about their opportunities, but also their parents and careers advisers too.” Competenz works with apprentices and trainees across 36 sectors including mechanical engineering, one of New Zealand’s biggest growth areas. Kingsford says: “Infometrics data shows that we’ll need 5,500 more workers in the mechanical engineering sector between now and 2022 to fill new jobs and replace workers who retire or leave. That’s just one sector, and with such a small number of school leavers going into the trades, employers are all competing for the same pool of people. “We need to get more school leavers into trades now,

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or the skills shortage will only get worse. “A lot of the decision-making is aided by parents and family members and a lot of the time it’s what mum and dad know of those industries. But we need our young people to be aware of all the opportunities out there.”

‘Genuine opportunities’ Competenz works closely with Apprentice Training New Zealand (ATNZ), the country’s largest employer of mechanical engineering apprentices. “ATNZ has recruited 105 apprentices this year, and still has another 50 apprenticeship vacancies to fill across the country. “Auckland employs one third of mechanical engineers, and coupled with strong future population growth, the region still holds good prospects for those entering the sector. That said, rents and house prices are sky rocketing in Auckland, so working in smaller regions allows people to easily relocate and enjoy a

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Analytics leaders wrestle with AI challenges for 2018.


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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 on lar tru C s u a / c Mater eviews and fr ir e c C In an 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 count initiative, you’ll have a limited view of global movement. You must look at glo standards to understand global impact.

So rather than the name of the initiative t differentiates the work, it’s the standa behind that initiative that make the differen

The Time to Start Is Now

For organizations hesitant to start their journ

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FOCUS 1 1Parents urged to take trades seriously. 5 MANUFACTURING TECHNOLOGY

ADVISORS Leeann Watson

Advanced 3D technology for manufacturers. Digital teacher now working in schools. Kongsberg unlocks a world of profit.

PROFILE 10 COMPANY MJH Engineering gears up for a ‘Big is Best’ approach.

Is the Chief Executive of the Canterbury Employers’ Chamber of Commerce (the Chamber).and is a strong voice for Canterbury business.


TECHNOLOGY 11 MANUFACTURING KiwiNet’s research commercialisation

13 14

Dieter Adam

success to scale up. WOMEN IN ENGINEERING Helen Trappitt, Lewis Bradford Consulting Engineers, Christchurch.


COMMENT From Leeann Watson: Confidence impacts on economic growth. From Dieter Adam: Skills Shift- Research and Pilot Programme. Conferences can enrich your career.

Kirk Hope

Is Chief Executive of BusinessNZ, New Zealand’s largest business advocacy body. He has held a range of senior positions at Westpac and is a barrister and solicitor.

MANUFACTURING 17 SMART ‘ED’ the Chatbot joins the DunedinNZ

team. Autonomous parcel delivery solution unveiled. Questions to consider on robots and jobs. It’s too soon to call 3D printing a green technology. Businesses driving productivity and efficiencies with enterprise mobility. How 3D printing could disrupt manufacturing economies.

10 Lewis Woodward

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.

UPDATE 24 PRODUCT Quality compressed air for trades and

workshop applications. Counterfeit bearings pose serious safety risks. Hydraulink Australasia moves to protect industry from stoppages.

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.


MANUFACTURING 26 FOOD Sludge dewatering solves environmental

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 Development & Pacific Islands Export Manager at New Zealand Steel..

and disposal issues.

CHAIN 28 SUPPLY Vesta-Central receives R & D grant to synchronise product data.

29 DEVELOPMENTS Recycled plastics used to grow NZ’s largest


bottled water production line. NZ Defence Force take top diversity award.

NEWS 30 BUSINESS SYSPRO Australasia appoints new sales

manager. James Hardie appoints Jack Truong as CEO successor.

VIEW 31 REAR AI can’t solve everything.


Craig Carlyle

Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.


Media Hawke’s Bay Ltd,1/121 Russell Street North, Hastings, New Zealand 4122.


I have a lot of conversations with readers bothered by the direction of the Coalition government.

Doug Green T: +64 6 870 9029 E:


Dieter Adam, Holly Green, Lewis Woodward, Helen Trappitt, Trevor Thornton, Christopher Lim, Tamara Nair, Leeann Watson, Jack Gao

Their concerns are primarily about employment law, productivity, increasing workers’ wages (and how they will cope), a lack of confidence in the government’s economic focus (and where this will lead us) and finding new markets for their manufactured products.


Doug Green T: + 64 6 870 9029 E:

DESIGN & PRODUCTION Kim Alves, KA Design T: + 64 6 870 8133 E:

The rural sector is the country’s primary export earner and manufacturers know this. They also know that they are competing in a changing world where a lot of the current focus is on the trade wars between China and America.


Bruce Metelerkamp E:

PUBLISHING SERVICES On-Line Publisher Media Hawke’s Bay Ltd


MEDIA HAWKES BAY LTD T: +64 6 870 4506 F: +64 6 878 8150 E: 1/121 Russell Street North, Hastings PO Box 1109, Hastings, NZ NZ Manufacturer ISSN 1179-4992

Vol.9 No. 8 SEPTEMBER 2018 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.


NZ Manufacturer September 2018

Manufacturers more aspirational than government


They know that their biggest – and most consistent - market is across the ditch. And even though we keep oan beating them at rugby they still talk to us. Still share common business relationships and even though Australia has changed prime ministers more than we have changed goalkickers, the common business bond is unlikely ever to be severed.

and conversely the number of Australians visiting New Zealand continues to increase and swell government coffers. They even buy products from us. So, while we have ongoing concerns about government’s economic direction let’s keep on doing what we do well. Maintain Trans-Tasman – and other business – relationships and actively continue to seek export business opportunities. This government may well only be in office for only one term. But whoever the government is, they are precluded from our company focus and direction and the temporary term in power - their existence - cannot be allowed to sideswipe our creative endeavours and aspirational approach to business.

And we share common issues. Sure, they send back our bad people, but we still visit them

Doug Green

Success Through Innovation


You know you are on the road to success if you would do your job, and not be paid for it. -Oprah Winfrey


Advanced metals 3D printing technology for mass production Earlier this month at the 2018 International Manufacturing Technology Show (IMTS), HP Inc. launched HP Metal Jet, the world’s most advanced 3D printing technology for the high-volume manufacturing of production-grade metal parts. Providing up to 50 times more productivity1 at a significantly lower costs than other 3D printing methods, HP Metal Jet is being deployed by manufacturing leaders GKN Powder Metallurgy and Parmatech for the factory production of final parts. Customers placing orders include global stalwarts Volkswagen and Wilo and innovative vertical market leaders such as Primo Medical Group and OKAY Industries. As part of its mission to transform the way the world designs and manufactures, HP also launched the Metal Jet Production Service3, enabling customers around the world to rapidly iterate new 3D part designs, produce final parts in volume, and integrate HP Metal Jet into their long-term production roadmaps. Medical sectors alone produce hundreds of billions of metal parts each year. HP’s new Metal Jet 3D printing platform and Production

Service unlocks the speed, quality, and economics to enable our customers to completely rethink the way they design, manufacture, and deliver new solutions in the digital age.”

Metallurgy to deploy HP Metal Jet in their factories to produce functional metal parts for auto and industrial leaders including Volkswagen and Wilo.

HP Metal Jet is a ground-breaking, voxel-level binder jetting technology leveraging more than 30 years of HP printhead and advanced chemistries innovation.

GKN Powder Metallurgy is the world’s leading producer of materials and products using powder metallurgy technologies and includes the brands of GKN Sinter Metals, GKN Hoeganaes, and GKN Additive Manufacturing.

With a bed size of 430 x 320 x 200mm, 4x the nozzle redundancy and 2x the printbars4, and significantly less binder by weight, HP Metal Jet delivers greater productivity and reliability at a low acquisition and operational cost compared to other metals 3D printing solutions. HP Metal Jet will start with stainless steel parts, delivering isotropic mechanical properties exceeding industry standards.

The company produces more than three billion components per year and expects to print millions of production-grade HP Metal Jet parts for its customers across industries as early as next year. Volkswagen, one of the largest and most innovative vehicle makers in the world, is integrating HP Metal Jet into its long-term design and production roadmap. The collaboration between Volkswagen, GKN Powder Metallurgy and HP has resulted in the ability to move quickly to assess the manufacturing of mass-customizable

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Transforming industries with Metal Jet technology In an industry-first collaboration, HP is partnering with GKN Powder

Find a great home for your business EAST TAMAKI A great place to do business


NZ Manufacturer September 2018



The secret of success is to do the common thing uncommonly well. - John D. Rockefeller Jr.

Digital teacher now working in a school A new kind of teacher It’s back to school, and you know what that means — time to fire up the computer that teaches you! That’s what primary school students in New Zealand have to look forward to, anyways. They’ll soon be the first students in the world to learn from an artificially intelligent (AI) digital avatar.

Meet Will Auckland energy company Vector teamed up with AI company Soul Machines to create the avatar, which goes by the name Will. The AI is now part of Vector’s Be Sustainable with Energy program, which it offers free-of-charge to schools to which it provides electricity. Will’s there to teach children about energy use. Students interact with Will — essentially just a face on a screen — via their desktop, tablet, or mobile device. He teaches them about different forms of renewable energy, such as solar and wind. Will can then ask the students questions about what they’ve learned to ensure the lessons stick.

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According to Vector’s Chief Digital Officer, Nikhil Ravishankar, students seem particularly taken by Will. “What was fascinating to me was the reaction of the children to Will. The way they look at the world is so creative and different, and Will really captured their attention.” He went on to add, “Using a digital human is a very compelling method to deliver new information to people, and I have a lot of hope in this technology as a means to deliver cost-effective, rich, educational experiences into the future.”

An education crisis Ravishankar isn’t the only person who thinks robots — in the form of AI software programs like Will, or actual humanoid machines — will soon play a major role in education.

VW ‘s multiyear plan to use HP Metal Jet also includes the production of higher performance functional parts with significant structural requirements, such as gearshift knobs and mirror mounts. As new platforms such as electric vehicles enter mass production, HP Metal Jet is expected to be leveraged for additional applications such as the light weighting of fully safety-certified metal parts. GKN Powder Metallurgy is also leveraging HP Metal Jet technology to

In February 2017, futurist Thomas Frey predicted that learning from bots will be commonplace by 2031. Meanwhile, British education expert Anthony Seldon thinks robots will replace human teachers by 2027.

Many nations, particularly in the developing world, don’t have nearly enough teachers. Robots like Will could help fill that gap. Compared to the cost of paying a human teacher, these systems are also far cheaper, and they can adjust to each individual student’s learning style to help them reach their potential.

Even if human teachers get to keep

While digital teachers could provide

produce cost-effective industrial parts with higher hydraulic efficiency for Wilo, a global leader for pumps and pump system solutions. Wilo is looking to HP Metal Jet technology to produce initial hydraulic parts such as impellers, diffusors and pump housings with widely variable dimensions that must withstand intense suction, pressure, and temperature fluctuations. Reinventing healthcare To serve the medical industry, HP is also partnering with Parmatech, an ATW Company, to expand mass production

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their jobs, working in tandem with robots could solve many of the problems currently facing the world’s education system.

a host of benefits, they still aren’t as advanced as they need to be. Will is only well-versed on one topic — renewable energy — while quality teachers are typically far more well-rounded. Social interaction between teachers and students is also critical to a quality education, and digital teachers most certainly lag behind their human counterparts in this realm. Will might be the first digital teacher to hit the classroom, but he almost certainly won’t be the last.

Advanced metals 3D printing technology for mass production

parts such as individualized key rings and exterior-mounted name plates.

0800 832 473

Will teaches pupils about different forms of renewable energy.

NZ Manufacturer September 2018


of Metal Jet parts for customers including OKAY Industries, Primo Medical Group, and others. Parmatech is a world leader in metal injection moulding and has been a metals manufacturing pioneer for more than 40 years, specializing in producing low-cost, high-volume metal parts for the medical and industrial sectors. In the first half of 2019, customers will be able to upload 3D design files and receive industrial-grade parts in

large quantities from the new Metal Jet Production Service. The parts will be produced in collaboration with HP partners GKN Powder Metallurgy and Parmatech to ensure the highest standards of engineering and production quality. For more information and to register for access to the HP Metal Jet Production Service go to

The secret to success is to know something nobody else knows. -Aristotle Onassis

Using Artec 3D scanning technology to keep naval ships in perfect condition Dutch company - Marinebedrijf Koninklijke Marine responsible for the maintenance of all naval vessels and submarines of the Dutch Royal Navy, as well as M-class frigates of the Belgian Navy. The company also creates new parts for those ships and makes modifications of everything from the hull to weapon systems and engines. “The use of the 3D scan technique is becoming more and more important because all ships of the Navy are coming to us for maintenance on a regular basis,” says Ben Jansen, CNC coordinator at Marinebedrijf Koninklijke Marine. “A lot of times we don’t have drawings or 3D CAD files of the things that need to be repaired or where we need to make new parts for existing systems.” When they have no 3D data or drawings of the part, Marinebedrijf Koninklijke Marine uses the Artec Eva and Artec Spider 3D scanners to create a 3D image of the object, and the scan is used to reverse engineer the object. The part is then replicated using 3D printing techniques, 3-5 axis milling or 3D welding. “We are now able to work a lot faster and more accurate,” says Ben Jansen. “Because we now have a complete 3D model, we have all the correct dimensions of every object. It results in a far more efficient way of working and it is faster, so we save a lot of money in these projects.” The team no longer needs to take measurements with rulers and other tools. That approach was time-consuming and did not always yield accurate results. “Also it was common that you forgot to take certain measurements and had to go back to the ship again. This is now all over,” says Ben Jansen. Marinebedrijf Koninklijke Marine uses the scanners for a wide range of vessels, for instance, the “Green Drake,” which is a boat of the former Queen of Holland. There are hardly any drawings of this boat, and the team can now scan what they have and then make changes to the 3D digital model, such as repair cracks or missing parts, and machine new parts to reinstate the boat in perfect condition. “By using the 3D scanning techniques, we can work faster and more efficient, and of course we are now able to make parts that we could not make in the past or only through a very long lasting and tedious process,” says Ben Jansen. Another example is the project where they needed to repair an impeller of an LCVP (Landing Craft Vehicle Personnel). This boat sails half onto the shore when dropping off marines, and when it needs to go back, the LCVP moves backward and the impeller sucks in sand and rocks beside the water. These rocks hit against the impeller resulting in small pieces breaking off. The team scanned the impeller and by using the resulting STL file they programmed their robotic welding system to perform accurate welding only those spots where material needed to be added. 3D scanning is also useful for reverse engineering seats on FRISC-type high-speed boats, which can make up to 80 km/h and is used for intercepting purposes. Because of the high impact on the waves, the seats can crack and need repairing. In a recent project, Marinebedrijf Koninklijke Marine scanned one of the seats with Eva 3D imager and used the 3D information to create a reverse engineered mold, from which seats are repaired. “After collecting data, we are using all the tools available in Artec Studio to get a perfect model,” says Ben Jansen. “If we need to do modifications where Artec Studio does not have the necessary tools, such as adding material to the 3D model, we export the file to other software, where we can make the required changes.” After post-processing, the model is usually exported to Spaceclaim, a CAD package for reverse engineering. And then a 3D file for 3D printing, milling or 3D welding is created. If necessary, 2D and 3D drawings are made for tool shops within the Royal Navy. “In all of this the role of 3D scanning is growing rapidly,” says Ben Jansen. “We noticed that when you have a perfect tool like this, also other people suddenly see the impact and how easy it is to make a matching scan of an object. Then they want to use the scanner as well.” To learn about the “Return on Investment on using a 3D scanner for Reverse Engineering”, click here For more information on Artec 3D Scanning solutions, visit


NZ Manufacturer September 2018



I never dreamed about success, I worked for it. -Estee Lauder

Kongsberg unlocks a world of profit Installing a Kongsberg XN24 cutting table, from Fuji Xerox, has helped Auckland’s I Print On Demand understand how much more it can achieve. Pete Mills, managing director at I Print On Demand, says, “The Kongsberg table has us thinking about making a profit from printing in a whole different way. This makes all of our other printing equipment relevant. It’s that old saying: ‘The job is not over until it is finished.’” The company performs a large amount of work for other printers. He says, “We don’t advertise but about 80 per cent of our work is trade printing. We are not in the mass market. We work in the area where people need smaller runs and more on demand jobs; often jobs that other companies can’t do or don’t have the time or equipment.”

New applications The Kongsberg cutting table has unlocked new applications for I Print On Demand. Mills says, “We have been able to turn ordinary printing jobs into high value jobs, simply by looking at how we can use the cutting table in different ways. And often, it is the more complex job and more profitable jobs where, when you think about it and use the cutting table, you can make them even more profitable.” Print On Demand’s customers all know Mills by his first name. He says, “Our market covers companies who we can

offer a broad range of print services to, so having the cutting table is ideal. We get quite a few last minute jobs. With this trade approach, we often find ourselves as the ambulance at the bottom of the cliff rather than the person directing traffic at the top. We have found ourselves doing a lot of specialty work like intricate box work and making corporate gifts. It is relatively easy to do to create quite special printed material.” He sees the Kongsberg as indispensable. He says, “If you asked me, of all the things I have, what would be the last to walk out the door, it would be this cutting table. “It has given us access to new revenue

streams because it unlocks the door to blend together a range of equipment to enhance our offering.” Mills, well-known in the industry, has over 40 years’ experience to call on. He runs the plant with two staff who perform a range of skills. Business confidence has fallen recently but Mills sees right now as a good time to be in the industry. He says, “What happens when you are a small player, print buyers within organisations tend to go with the big corporate type printers. But when business confidence falls, people break relationships and they look for other players.” h t t p s : / / w w w. f u j i x e r o x . c o . n z / KongsbergXStarter

“The Kongsberg table unlocks the world of wide format and short run finishing. We can do a run of 10 boxes and make a profit. It’s about tying all of your machines into a cohesive print operation and getting the sales. You have to work out the best way to employ the equipment you have for each job; how you can make it work best. “If you get the right equipment, you can do the work you need to do to make a decent profit. It is impossible to do these jobs without a cutting table. A lot of printers get asked to jobs they can’t do; we can do those jobs and we complete a huge variety of work and, with the Kongsberg, we haven’t found anything we can’t do yet. It cuts a range of material, textiles, ACM, corflute; you name it.”

JEC Asia gathers the composites industry in Korea for its 11th edition JEC Asia will be held November 14-16, 2018 at COEX Centre, Seoul, South Korea After the record-breaking figures of the 2017 edition, that marked the move of JEC Asia from Singapore to Seoul, the event is returning to the capital city of the Republic of Korea with a strong program, not only on the exhibition floor, but also in the conference sessions and all services at the disposal of every attendee.

of JEC Asia, that has led to the success of the platform. Indeed, 90% of the show floor is already booked boding well for the preparation of the event.” Commented Christian Strassburger, Events Director Asia for JEC Group.

“We are very grateful for the support of the industry, government bodies, and academics, regarding the evolution

“On top of that, the event is truly international, as 45% of the exhibitors are coming from outside Asia. JEC Asia will welcome pavilions from Germany, France, Italy, Japan, China and Singapore, as well as the major



NZ Manufacturer September 2018

composite clusters in Korea.” He added. Focus on the automotive industry The future of mobility is a hot topic for composite materials and JEC Asia will represent, promote and provide information about the increasing integration of composites in automotive developments. Numerous programs will be offered, such as a whole day conference on Composites in Automotive, a

Leadership Composites Circle, an Auto Planet, showcasing parts, a B2B meetings program, a JEC Innovation Award category and Composites tours (site visits of composite related facilities). Finally, for the second time, JEC Asia will host the International Carbon Festival, organised by KCTECH and the Jeonju region, with top-notch conferences and international speakers.


Designed to adapt. The Esko Kongsberg X Starter is a cutting table that offers value, reliability, precision and ease of use at an attractive investment level. With Esko Kongsberg X Starter Cutting Table, you have a safe entry to digital finishing with the flexibility to upgrade to more speed or versatility whenever you like.

K E Y B E N E FI T S: – Effortlessly upgrade as you grow – Interface with Esko’s design and manufacturing software

Esko Kongsberg X Starter Cutting Table is

– Versatile operation on widest range of materials

the Esko experience for less. To find out more visit:


NZ Manufacturer September 2018



There is a powerful driving force inside every human being that, once unleashed, can make any vision, dream, or desire a reality. - Anthony Robbins

MJH Engineering gears up for a ‘Big is Best’ approach The notion ‘think big’ is entirely applicable to MJH Engineering. The steel fabrication company, based in Seaview, Lower Hutt houses industry-leading automated machinery, and some of New Zealand’s largest building construction projects can be attributed to its name. Founded by Malcolm Hammond in 1982 as a factory and machinery maintenance firm, MJH Engineering quickly evolved into the construction industry and from one employee it has grown to over 100 today and now spans three sites and includes a 5,000sqm workshop. Fabricating for clients across New Zealand, on any given day the MJH team could be working on a range of structural steel works for industrial warehouses, commercial buildings, multi storey tower-blocks, steel art works, residential buildings and seismic strengthening projects. “Our experience and capacity ensures we can undertake multiple large scale projects safely, smoothly, and on time,” says Managing Director, Malcolm Hammond.

conventional tower frames,” he said, “But it also uses about twenty percent less steel than conventional building designs.” The complexity of the project brought the skill of the MJH team to the fore as they created unique, precisely angled parts for components of the diagrid structure. Other notable projects the MJH team has been involved with include the iconic 32-meter-high Wellington Airport Control Tower, which leans into the prevailing northerly wind at a 12.5 degree angle and the award winning $100 million dollar Manukau Institute of Technology Tertiary Centre and Transport Exchange. Fabricating and installing Wellington’s largest sculpture Lightwing

A heavyweight when it comes to industry accolades as well, MJH has recently been named a finalist in the Steel Construction New Zealand (SCNZ) Excellence in Steel awards for its involvement in Wellington’s Deloitte House (20 Customhouse Quay) and for the Rankine Brown Emergency Shoring for the Liftshaft.

MJH was also integral in the recent construction of Wellington’s largest sculpture, Lightwing, designed by Andrew Thomas, at the Seaview roundabout. The $250,000 sculpture stands 6m high, 10m wide and is made of 20 tonnes of steel, which was very carefully fabricated and installed by the MJH team.

The landmark construction of 20 Customhouse Quay – a 15-level seismically advanced office tower featuring a diagonally braced diagrid perimeter structure with base isolation, represents a new generation of safety and resilience and meets up to 180% of the building code, says Hammond.

Lightwing was a result of a five year collaboration project between the Hutt City Council, the E Tu Awakairangi Hutt Public Art Trust, the Seaview Business Association and local businesses.

“The diagrid structure is stiffer than

“Seaview is a manufacturing distribution centre not well recognised for its economic value - we wanted a sculpture that was highly visible for

Hutt Park Warehouse

people travelling to and from work and something for the local businesses in the area to be proud of,” said Angus Kincaid, Seaview Business Association Chairperson. A collaborative project, designed to celebrate the big impact manufacturing businesses in the area have on the local economy and community, the Seaview Business Association approached businesses in the area and were delighted when MJH Engineering, Seaview Blasting, Dulux and GK Shaw Seaview came on board to build, paint, blast and install the sculpture. “The sculpture served as a way of connecting local businesses, building relationships and ultimately creating something to be proud of for years to come demonstrating the capability of businesses in the Seaview area.” said Allan Brown a trustee of E Tu Awakairangi Hutt Public Art Trust. Innovation the key to business success Hammond says the company is currently working on local projects including the Paramount Theatre, Wellington’s historic Stewart Dawson Corner, construction of Alpha Apartments and the Comfort Hotel and re-strengthening of the earthquake-damaged Queensgate Shopping centre. And while business has been booming over the past couple of years, Hammond says Wellington is currently experiencing some flatness in the commercial sector, while Auckland remains busy with new builds. “Business comes in waves and the escalating costs in the building industry, the current economic climate and change in government could be contributing factors to work being flat in the Wellington market,” said Hammond.



NZ Manufacturer September 2018


The break in intensity has allowed MJH to put more effort into innovation and introducing new machinery thus expanding their operations. “We are proudly SCNZ Steel Fabricator certified (SFC) to category 3, which awards us with an independent certification that our quality management systems consistently result in compliant fabricated steelwork,” said Hammond. “We also utilise the latest technology to ensure maximum efficiency and accuracy.” So, what’s in the kit? • An augmented reality device called a Microsoft Hololens, which allows the team to view 3D objects from any angle and interact with the model, assisting with fabrication accuracy and confirming access for welding. • The Faro S150 - a high resolution 3D scanner to take very accurate site measurements. • The Total Station, an electronic/ optical instrument to get accurate angles, measurements and point co-ordinates. • Two large workshops and a machine shop, which are covered and craned, housing CNC cutting and drilling devices, a robotic coping machine and a Berardi large 5 axis milling machine. The Berardi is one of only a few available in its size in the world and was previously used in the United States aerospace industry for the machining of jet engine turbines. With the company having just extended its workshop space to accommodate the new automated machinery, it seems big is best. “We are constantly looking for new ways to improve our performance and output,” said Hammond.

I failed my way to success. -Thomas Edison


KiwiNet’s research commercialisation success to scale up The Kiwi Innovation Network (KiwiNet) has announced the appointment of a new Chairman and two new board members Dr Will Barker and Dr Anne Barnett. Ngaio Merrick will take over the role of board chairman from Hon Ruth Richardson who is retiring as the foundation chairman leading KiwiNet to boost research commercialisation success in New Zealand. The Kiwi Innovation Network (KiwiNet) comprises 16 universities and Crown Research Institutes and independent research organisations working together to increase the scale and impact of scientific and technology-based innovation in New Zealand. KiwiNet’s outgoing chairman, Hon Ruth Richardson, says KiwiNet has demonstrated the power of collaboration and has been instrumental in creating a thriving culture of researchers empowered to take their discoveries to the world. “I’m incredibly proud to have been involved in KiwiNet from its formation in 2011 – with four partner organisations – to now partnering with the majority of publicly funded research organisations in New Zealand and representing over 7000 researchers. The KiwiNet team is totally dedicated to building commercialisation capability across New Zealand and is very ably led by CEO James Hutchinson.”

To date KiwiNet (including its forerunner Unicom, formed in 2008) has invested $38 million of PreSeed Accelerator Investment from MBIE, with business co-investing a further $20 million alongside this. Richardson says the commercial results speak for themselves with a seven-fold return on investment already. “KiwiNet has backed over 950 projects involving hundreds of researchers from KiwiNet PreSeed pooling partners. From these projects we’ve already seen 383 commercial deals across 167 projects, including 39 start-up companies formed. This has generated $293 million total known revenue to New Zealand businesses and research organisations,” she says. Ngaio Merrick, an independent board member and the new chairman, says: “I’m incredibly excited to build on KiwiNet’s solid foundation and successes to date, to scale further – we’re hugely ambitious to realise the enormous opportunity before us to deliver significant returns to New Zealand”. There is no shortage of science, ideas, innovation or invention in our research organisations that we can tap into to create an avalanche of deep-tech ventures to drive a diverse and

Konica Minolta partners

Ngaio Merrick

Dr. Anne Barnett

prosperous economy, says Merrick. “With additional support KiwiNet will be able to touch an even greater percentage of researchers in our existing partnerships to amplify the number of licensing deals and spinouts. We will also continue to build our engagement with the private sector to form a community of capable, driven professionals delivering investible propositions from publicly funded research.” Merrick, who is Sir David Levene’s investment portfolio manager, developed a passion for strategic thinking and innovation by combining her early career in science, sales and management of technologically advanced organisations with later leadership and development roles. Dr Will Barker, Founder and CEO of Mint Innovation and a Director of the Health Research Council of New Zealand, has also been appointed as an independent director. Dr Barker has a wealth of experience in science and technology-based businesses, with a focus on commercialisation, securing value, and IP strategy.

Dr. Will Barker

Dr Anne Barnett, CEO of Viclink Ltd, replaces former Viclink CEO Geoff Todd as the KiwiNet board university representative. Prior to this role, Dr Barnett a physical scientist by training, spent four years growing and developing the IP and Commercialisation team within Viclink as General Manager of Commercialisation, resulting in a significant increase in the numbers of disclosures. The new KiwiNet board members will join the current board which includes Plant & Food Research CEO David Hughes and investor and advisor Andrew Turnbull. KiwiNet partner organisations include WaikatoLink, Plant & Food Research, Otago Innovation Ltd, Lincoln University, AUT Enterprises, AgResearch, University of Canterbury, Callaghan Innovation, Viclink, Landcare Research, Cawthron Institute, ESR, NIWA, Scion, Malaghan Institute, and GNS Science. Principal support is provided by the Ministry of Business, Innovation & Employment (MBIE).

with Mobile Industrial Robots

Konica Minolta has partnered with Mobile Industrial Robots (MiR), a leading manufacturer of collaborative mobile robots, to bring a greater level of automation to its clients. MiR manufactures robots that help companies increase the efficiency of their operations. These robots are used by companies to transport trolleys and goods in the manufacturing sector and move pallets in the distribution industry. Built-in sensors and cameras combine with market-leading technology so the mobile robot can collaborate safely with humans. No cages or designated human or robot areas are required.

Martin Keetels, National Manager of Robotics and Innovation, Konica Minolta, said, “Innovation and automation have a significant role to play in manufacturing and distribution environments in Australia. Konica Minolta is excited to bring another level of automation to its customers. With businesses requiring greater efficiency to remain competitive in the region, and globally clients are beginning to demand robotic technology.


NZ Manufacturer September 2018



We are not creatures of circumstance; we are creators of circumstance.- Benjamin Disraeli

Manufacture like a boss Every part manufactured has a story – the story of how something is made, how much something costs, how much something can be sold for, and if you make it again. A good manufacturing story will be filled with precise detail, perfect accuracy, and guide your future based on a truthful history. And this means your customers will want more. Why? The answer is simple – if you are manufacturing like a boss it means you: Master the four key transactions: Purchasing Receipts, Issuing Material, WIP to FG, Shipping/Invoicing. Know your costs (freight, labour, outside services, overhead, other, material) with accurate precision. Price your parts competitively and profitably. Quote your jobs correctly with speed and accuracy. Reduce your risk by knowing and not guessing. When you are doing the above you are making parts faster, making parts better, watching it all in real time, and knowing exactly what everything costs – otherwise known as “manufacturing like a boss”.

Prepare to win Manufacturing can be won or lost in how prepared your company is, not just a person. Employees must be well trained to accurately capture data. Garbage in, garbage out. Employees must hold each other accountable. If you see something, say something. Employees must understand daily processes and how each action impacts costing. If you do not know, ask first.

Accurate bills and routers When a work order is generated to drive how much and how long it will take to make the parts, the accuracy of the bill of materials and routers impacts runtime, setup, lead times, and quantities. If the lead time is incorrect, it will tell purchasing to order material at the wrong times, leading to overstock of product or expedited fees to get product in.

Realistic due dates If the due date on a work order (often driven by sales) is entered for a week

from now, but it takes several weeks to make the part, you are setting yourself up for failure. Purchasing will be scrambling to order material, supervisors will be adjusting labour, and you likely won’t be profitable on the job.

material to be issued leading to incorrect demand.

To make matters worse, you may have to bump other jobs and your customer will be upset if it does take longer to make than promised. A double whammy.

Inspect as you go instead of at the end, as the cost of quality increases with each operation performed on bad parts. This leads to a higher cost of goods sold (COGS) from the extra cost applied. A plan to handle rework or bad parts on work orders where the bulk of the parts have been completed should be in place.

Correct cost and conversion factors Cost on a purchase order (PO) line should be known at any given time. If the cost or conversion factor on a PO is incorrect, everything downstream from the PO receipt to the cost on the parts being shipped will be incorrect, including financial implications. Timely PO receipts. If material is on the shelf but a receipt has not been completed, this will lead to problems. Employees may cycle count the parts in because it’s on the shelf, but not in the system. This can lead to loss of traceability on any material requiring certification, heat, lot, bin tracking or serialization. When the PO receipt is done, then the parts are cycle counted back out. Issue material on time. Inventory control is imperative. If material has been taken from the shelf, but not issued to the work order, this leads to problems. Parts may be promised sooner than what can happen because it looks like the material is available. Employees may cycle count the parts out because they cannot see the material on the shelf. And if the finished good is moved to inventory without the material issued, the value of that product will be under costed, which leads to incorrect profitability. Watch your cycle count adjustments. Cycle count adjustments have an inverse relationship with inventory control. The more cycle count adjustments happen, the less inventory control there is. This means the parts are not being issued correctly to work orders, WIP to FG is not being done, etc. This leads to incorrect costing on work orders. Finish your job. Most of our customers tell their employees – if it is not in Global Shop Solutions, then it didn’t happen. Operations must be closed accurately when completed. If the estimated material is greater than the actual amount needed, and the operation is left open, it will continue to call out for the remainder of the


NZ Manufacturer September 2018


And it will continue to show on dispatch lists and incorrect costs will move.

Have a plan

Track labour and perform daily balancing Labour is the 800-pound elephant. First, when it comes to indirect labour, use common sense. There will be indirect time if employees work on several work orders a day and some employees like shipping, maintenance, engineers, parts movers and office employees will have higher indirect costs than others. If employees should have a lot of direct time but show a considerable amount of indirect, it typically means they are not logging work orders correctly resulting in jobs being under costed. If there are employees who should have some indirect and don’t, it typically means they are staying logged into work orders while they are finding their next job resulting in those jobs being over costed. Second, track direct labour and perform daily balancing every single day. It is better to find labour mistakes as soon as they happen so the cost is corrected immediately. For example, an employee forgets to log out of a work order at the end of the day on Friday before a long weekend. When the employee comes back on Tuesday and notices they didn’t log out, they will likely log out then. If they don’t tell their supervisor and daily balancing is not performed for several days—the work order they were logged onto is over costed. Chances are the part has moved into inventory and has been issued to another work order or is shipped resulting in incorrect costing ricocheting through the system. Close work orders on time. If parts are on the shelf but the work order is not closed, there is a chance the parts will be cycle counted in. Parts cycle counted in have no traceability and when the work order is eventually closed, on hand increases and the parts have to be cycle counted

back out. This leads to incorrect inventory history, failed traceability, and incorrect costing, not to mention a bunch of wasted time fixing the inventory count.

Performance matters – compare estimates to actuals If the bills and routers (To Do #2) are accurate, then estimate vs. actual can be used for analysis. If there are operations that are drastically different, it means either the bills/ routers are incorrect, or someone applied too much or too little labour/ material. Having something to base costing on is imperative as there is no way to know if cost is correct without a proper baseline being established. Stop guessing and start knowing. If you are doing daily balancing every day, employees are logging in and out of jobs correctly, material is issued accurately, operations are being closed, WIP to FG is being done, and parts are shipped correctly – you will be job costing like a boss. It is too late to notice bad costs after the parts are shipped. Everyone should strive to handle job costing by exception rather than after the jobs are complete. Simple exception reports can be created to help identify when material has not been issued, when operations are not closed, and more. These reports are typically created based on the type of parts being created, the amount of rework or scrap being processed, and if there are “if necessary” operations that don’t have to be processed.

In any line of work, it is easy to lose focus Days become weeks and weeks become months, and suddenly we find ourselves working harder for the same results. Typically, this means we have stepped away from the success that got us to the top of the mountain and need to get back to basics. The To Do’s listed are designed to do just that.


If you want to live a happy life, tie it to a goal, not to people or things. - Albert Einstein

morning tea with the office ladies or the blokes (engineers and surveyors).

Do you recommend this profession for young women? The profession of engineering is a very broad one with amazing opportunities for young people. I strongly recommend anyone who enjoys maths and science at secondary school consider engineering as a career. If you also have strong communication skills and are a creative problem solver then you will be well placed to succeed. There is no reason why girls shouldn’t give it a go. Looking at the statistics there is not much evidence of progress on this front yet at senior management level, however there is a great group of women coming through in their twenties and thirties now that I feel will shake things up a bit.

Helen Trappitt Structural Engineer, Shareholder and Director, Lewis Bradford Consulting Engineers Christchurch Why do you do what you do and do you enjoy it? I currently work in three main areas of structural engineering for different reasons. Seismic strengthening of heritage buildings is satisfying and challenging. I’m motivated to work on these projects as they are key to getting Christchurch back on its feet. I have also been involved with complex residential insurance claims following the Canterbury and Kaikoura Earthquakes. This work is not at all glamorous when compared to other structural projects, but it is vitally important to the homeowners who have been in limbo for many years. My other area of work does not feel like work. I lead a team at Lewis Bradford that help local creative groups with their structural engineering needs, usually pro bono. This ranges from

the structural design of large scale permanent sculptures to assisting with the Festival of Transitional Architecture (FESTA), where the installations conceived by architecture students from around Australia and New Zealand are displayed for one night only. I enjoy the variety of work I do and in particular the ability engineers have to make a positive impact on society.

Greatest challenges? The greatest challenges I have faced both professionally and personally occurred in 2011. It was a tough year for any engineer in Christchurch. I learnt that natural disasters don’t stop all the other stuff that happens in life.

Most exciting project worked on? In 2012 I approached sculptor Neil

Dawson about designing a temporary sculpture for Christchurch. This project was exciting as we had no client or budget. The structural design and fabrication was challenging. We brought together about twenty local companies to donate services and materials ‘in kind’. The resulting work named ‘Spires’ is currently installed in Latimer Square.

Where did you study? University of Canterbury, School of Engineering BE Civil (Hons) 1997-1999

First work experiences was at……where I……………..

I’ve set up a scholarship for female engineering students at the University of Canterbury and have spoken at a number of girls secondary schools about engineering as a great career choice.

Favourite Book? The Corrections by Jonathan Franzen

Greatest inspiration? My family, in particular my grandmothers who are still going strong in their nineties.

Favourite quote? When Serena Williams was asked if she is “one of the greatest female athletes of all time”. She replied: “I prefer the words “one of the greatest athletes of all time”.

How do relax after a long day?

While I was at University I worked as a summer intern at a consultancy in Christchurch. I have recollections of soil tests, bracing schedules, being a survey assistant and data entry. At that time the firm had only two female technical staff. I was asked if I wanted to have

I’d like to be able to answer that I go to the gym and do yoga or eat organic food, but with four children at home things are fairly hectic until they are asleep. Relaxation tends to consist of either a good book or Netflix and the occasional wine.

Only 14% of all our engineers are women. We want to change that. Join us and scores of other Kiwi organisations that have galvanised around one common goal: 20% more women engineers by 2021.


NZ Manufacturer September 2018



I’d rather have half of my idea change the world than my whole idea be a few papers in a journal. - Rodney Brooks

Confidence impacts on economic growth -Leeann Watson , Chief Executive, Canterbury Employers’ Chamber of Commerce There’s been a lot of comment lately on business confidence, which has hit seven-year lows in recent months. While it’s easy to dismiss confidence as an irrelevant measure of sentiment only, the fact is, it does have an impact on economic growth through investment and employment decisions that businesses make. We can debate the various drivers of the numbers, but the biggest factor in my opinion is uncertainty. Business needs certainty to invest. Right now, in a number of key areas, they don’t have that certainty.

Whether it is around immigration changes and the impact this has on the ability to find skilled workers, clarity around proposed changes to employment legislation, or the changing nature of overseas investment and ownership rules impacting our reputation as an investment destination, the signals from policy-makers are unclear. Couple all that with the sudden decision around the oil and gas sector, and we begin to see a picture that I believe results in the lack confidence.

Sound policy that enables and supports business growth is essential.

There is a real risk to the pipeline of projects coming to market across many sectors, including the commercial and residential building sector, and the much-needed infrastructure investment to support our growing population and tourism numbers. This uncertainly takes a toll on business who require stability and certainty. While businesses understand the need for change and are incredibly resilient in the way in which they constantly adapt, sound policy that enables and supports business growth is essential. It’s particularly important in an environment where manufacturers face constant change, from changing workplace dynamics and drivers to digital disruption and emerging trends like AI. Instead of being able to focus on

these important issues, the constant uncertainty means we are distracted from the big issues that will affect the industry over the next decade. Everyone supports the Government’s goal of developing a modern, nimble, productive and high-growth economy. But we need more than a goal. We need a clearly defined strategy that will deliver on these aspirations and sound policy to create the certainty and stability to enable the innovation, growth and investment we need to create a stronger New Zealand.

Skills Shift – Research and Pilot Programme -Dieter Adam, Chief Executive, The Manufacturers Network How can companies, education providers and Government work together create a system where these skills challenges are address?

Skill shortages continue to be one of the top problems facing manufacturing businesses, holding them back from growing and reaching their potential. Not only this, but with changing and increasingly accessible digital technologies such as automation, AI and networked manufacturing, the skills required in manufacturing are likely to change into the future – this is the Skills Shift. While the topic of changing skills needs has been widely discussed, we do not yet have any concrete answers as to what it may mean for our sector and how we can best make sure training institutions can effectively respond and we make the necessary changes to our own practices. The Skills Shift represents a challenge for all sectors of New Zealand and all parts of our economy and society – how can people obtain the skills they need to succeed and get or keep well-paying, productive jobs?

And, in particular, how can employers and employees work together to train and up-skill while remaining employed, and with minimal impact on productive time? To answer these questions, The Manufacturers’ Network has put together a pilot programme and associated research projects focused on the Skills Shift in manufacturing. This programme has been endorsed by the Future of Work Tripartite Forum, and we will seek funding support to undertake the work. What we want to do is provide quality research into the Skills Shift in New Zealand so that manufacturers and tertiary and training providers understand what the Skills Shifts will look like and mean for them, and what measures will need to be taken to prevent the aggravation of what is already a serious skills shortage in manufacturing, and across a number of other industries. This programme can also provide some wider insights beyond just manufacturing. Using manufacturing

NZ Manufacturer September 2018

This programme will have four core components: Research study based on surveys of manufacturing companies: this will look at the change in demand for skills in manufacturing business across a number of sub-sectors, through in-depth surveys on current skill needs versus their expectation of skill requirements in, say, 2024. It will be complemented by a survey of current employees and learners, both in apprenticeships and manufacturing-related tertiary education, as well as a review of the current literature in this area. Research study of tertiary and other training providers: this will involve research into the relevant current offerings of tertiary institutions and look into how tertiary education providers view the Skills Shift in manufacturing, and how they currently

The Skills Shift represents a challenge for all sectors of New Zealand and all parts of our economy and society.

How can people gain both the soft and specialist technical skills that set them up to adapt to any change?


as an example, the project will provide information for government on changes in (tertiary) education and training required to grow output and productivity in our economy and avoid skill shortages, with a concurrent rise in unemployment affecting people whose skill sets no longer meet market demand.


plan to adapt their services. Gap analysis and recommendations: based on the above, this will identify the gap – if any – between what manufacturers and their employees expect future skills profiles to look like, and what tertiary education organisations think they have to do to meet future market demand. It will develop recommendations for how those gaps can be closed. Rapid implementation Pilot: this will be a practical pilot involving a single manufacturing business and associated education and training providers. Building on best-practice examples from overseas, this will look at the implementation of Industry 4.0 manufacturing technologies and the associated training and up-skilling required for staff members. The programme is set to start with the research into manufacturers’ demand for skills later in 2018. We will provide more information as this programme moves ahead and a number of our members will be involved and have opportunities to share their views on the changing skill needs in their businesses into the future. \We couldn’t be more excited to get start on this work – we think this has real potential to help our sector better prepare for the future and help align and improve understanding of our sector with education providers and Government to tackle future skills shortages.


Failure is an option here. If things are not failing, you are not innovating enough. - Elon Musk

A first for NZ - comprehensive cover for your IP Kiwi manufacturers can now afford to protect themselves against intellectual property (IP) risks, thanks to an audacious new product from Delta Insurance. There is a stark difference on how New Zealand manufacturers compete in the global markets when compared to their counterparts in other countries. Achieving advantages of economies of scale in New Zealand is generally difficult. Hence, Kiwi companies have geared themselves to focus on creation of value and are bringing forward innovative and niche products. This is evident in R&D spend as well. As a sector, manufacturing accounted for 42% of New Zealand’s business expenditure on research and development in 2016. Today, intangible assets like patents and brand marks, which made up almost 87% of corporate value of S&P 500 in 2015, are a key source of competitive advantage for many companies in New Zealand. This focus on innovation has brought intellectual property rights as a strategic asset to the forefront. More often than not, IP rights are not given the attention that they deserve

in risk management programmes. Lack of an insurance cover at a feasible premium is the primary reason of IP rights being ignored. Filling this serious gap in New Zealand’s insurance market, Delta’s IP offering has been designed to make it easy for Kiwi companies to cover their legal costs in a battle over ‘intangible’ asset. According to Delta Insurance Senior Underwriter Avani Vyas, dedicated IP coverage has long been out of reach for most Kiwi businesses. “Elements of IP coverage exist across some current policies, but no single insurance policy in New Zealand has dedicatedly covered intellectual property rights to date. Until now, this lack of simple, affordable IP cover has made it difficult for Kiwi companies to deal with infringement and enforcement-related issues.” “Our companies are coming up with disruptive ideas, revolutionising day-to-day commodities, and introducing advanced technology to the world,” Vyas points out. However, innovators in New Zealand’s ‘knowledge-based’ economy routinely run into costly IP infringement issues, with most failing to recognise the risks until it’s too late.

In export markets, Kiwi luxury consumables like manuka honey, chocolate, and wine are commonly devalued by knock-off products and trademark theft — part of a global tide of illegal competition which saw the estimated value of counterfeited goods rise to USD $1.7 trillion in 2015. Similarly, many Kiwi companies have also found themselves extorted or litigated at crippling expense by patent trolls. Zeacom, a software company which was formerly based in New Zealand, was stung by patent trolls twice. In the first instance, it opted to pay a $350,000 settlement instead of forking out millions to fight the baseless allegations. The second time, the company settled for an undisclosed amount. “Having an insurance policy that covers legal expenses allows businesses to swiftly respond to these kinds of difficult situations,” says Delta Insurance General Manager Craig Kirk. “An IP policy helps you unlock the potential of your IP while you commercialise your ideas with confidence and will reassure your investors that your business is well equipped to face infringement disputes.”

To help Kiwi companies come to grips with the many risks facing their IP assets, Delta Insurance plans to release a comprehensive white paper in coming weeks. Delta Insurance is a New Zealand-owned insurance provider, a Lloyd’s of London Cover holder and are backed by multinational insurer Allied World. They provide a range of specialty commercial insurance products and have an office in Singapore.

Covered for your intellectual property? Our dedicated IP insurance cover for legal expenses has been designed to make it easy for Kiwi companies to cover their legal costs in a court battle over their intangible assets. To make sure you’ve got all your bases covered, give your insurance broker a call.


NZ Manufacturer September 2018



Do not compromise on the quality and your customers will not negotiate on the price. - Warren Buffett

Conferences can enrich your career By Ruth Francis

Being somewhere in person brings contacts and connections that aren’t made by staying in and simply following a conference hashtag. But on entering an event where most

everyone already knows everyone else and they’re a lone outsider. There are ways to ease into the milieu.

extroverted among us can imagine

There are the chance connections:

circles of people are already engaged in




chatting in the queue for that first coffee, or realising you’ve been in the same sessions as someone else all day and mustering the courage to exchange thoughts. Others can be preplanned. You’ve probably gone through the programme and chosen the sessions you want to attend; are there speakers you want to meet in person? One way to strike up a conversation is to flag on social media that you’re excited about a particular panel and tag the speakers. Seeking out the speaker before the discussion is even better. Whether or not they suffer from last-minute nerves, having chatted to someone who is looking forward to hearing their talk will give the speaker a boost.

Striking up conversations at conferences and trade fairs can be intimidating, especially when it seems everyone already knows each other, but there are several ways to ease into the milieu and make the most of your trip.

If you wait until after the session, there will likely be a queue! During coffee breaks and receptions, it is possible to jump into a smaller group

if you hear they are talking about a subject that you are keen to discuss. Stand nearby and listen for a pause in the conversation, take a breath, smile and introduce yourself before offering your thoughts on the topic. You could even start by saying that you didn’t mean to interrupt but you wanted to join because it’s a subject you follow. It can be effective to seek out another sole attendee and strike up a conversation with them – you’ll probably be helping them to feel more comfortable in the situation as well. Look around and see if you recognise anyone who contributed during a discussion and go follow up with them on the point they made. Share your own experiences or ask them to tell you more about what they said or thought. Often, others will join where you lead and you will have formed your own circle in no time.

Trouble in the Making?

The Future of Manufacturing-Led Development The criteria for becoming a desirable manufacturing location are changing. Companies once influenced by the prospect of inexpensive labour costs are beginning to favour locations that can better take advantage of new technologies. The increasing adoption of industrial automation, advanced robotics, smart factories, the internet of things, and 3D printing are transforming the manufacturing process. Use of new technologies to produce traditional manufactured goods will be disruptive in developing economies – whether they are using the new technologies or not.

done exclusively by people. In China, for example, factories are projected to have more than 400,000 industrial robots installed by 2018, the highest number of any country in the world. FoxConn – the firm known for producing Apple and Samsung products in China’s Jiangsu province – recently replaced 60,000 Chinese factory workers with industrial robots.

In each of these cases, the newer factories powered by technology provided cost savings over their offshore plants powered by low worker wages. At the same time, changes in the global economy are presenting other challenges.

By reducing the relative importance of wages, robotics and “smart” factories can change what it takes for locations to compete in global manufacturing markets.

Weak import demand resulting from the trade slowdown following the 2008 financial crisis, the declining trade in parts and components, China’s continued expansion at the lower end of global value chains, and emerging threats of protectionism can all dampen the potential for growth in manufacturing.

The pattern is a familiar one – in some sectors, robots and other technological advances are automating jobs once

Philips in the Netherlands and Adidas in Germany are two companies who recently “reshored” production of their shavers and sneakers back home to be closer to final consumers.

The intersection of these trends in technology and trade shape where and how production happens, where different types of jobs are being created, and the extent of economic



If labour represents a smaller share of costs, more production may happen in richer countries, closer to consumers. Fewer businesses may move to lower-cost locations and local firms will face steeper competition. But it is not all bad news. There are new opportunities too – and that part of the story needs more attention.

NZ Manufacturer September 2018

opportunities around the world. The bigger unknown is “tomorrow’s jobs.” On one hand, there is a real risk that we can lose out on jobs that are never created. On the other, new technology could also lead to entirely new occupations that can’t be predicted today. To enable development, more attention should be focused on positioning firms and workers to take advantage of new opportunities. Manufacturing will remain a part of development strategies, but its contribution to inclusive growth is likely to be lower than in the past. The feasibility of attracting production and enabling local firms to use new technologies is becoming more challenging.

ADVISORS Mike Shatford

Sandra Lukey

Matt Minio

Phillip Wilson

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.


NZ Manufacturer September 2018


Quality means doing it right when no one is looking. -Henry Ford

‘ED’ the Chatbot joins the DunedinNZ team has welcomed ‘ED’ the chatbot as the newest member of its customer service team, the first destination marketing organisation in New Zealand to adopt this form of Artificial Intelligence technology.

to convert ‘dreamers’ and ‘planners’ into visitors to our city. With ED, we wanted to evoke the welcoming spirit and helpful nature of Dunedin’s people, which is a key part of our identity.

ED will act as an extension of the iSITE visitor centre by assisting website visitors with questions, serving the most relevant information and helping visitors plan their visit. John Christie Director Enterprise Dunedin said the project was another step towards enhancing the user experience and providing a comprehensive and intuitive customer service in the growing online marketplace.

“The process of finding the right ‘on brand’ persona for ED posed some interesting challenges for the marketing team, but we are really pleased with the result,” he said.

“A good experience during online travel research is a golden opportunity

assistant (VCA), and this will grow as VCAs such as chatbots become more common and people get familiar with using them,” Squiz NZ Managing Director Patrick FitzGerald said. “By adopting this emerging technology early, Enterprise Dunedin and Dunedin City Council will gain learnings relevant to further improving customer experience for visitors as well as residents, and to applying Artificial Intelligence more broadly in council services online”

Developed by international web technology company Squiz, ED runs on existing DCC web platform, powered by Google’s machine learning and natural language processing.

Research firm Gartner recently predicted that 25% of customer service and support operations will integrate virtual customer assistant (VCA) or chatbot technology across engagement channels by 2020.

“We know that a percentage of intending visitors prefer to source information using a virtual customer

Autonomous parcel delivery solution unveiled NEXT Future Transportation Inc. has announced a ground-breaking automated logistics solution for Smart and Connected Cities. Its fully automated multiservice ‘online-to-offline’ (O2O) platform includes a modular vehicle solution and the supporting operating system required to bring an ecosystem of logistics services to market at scale. To date NEXT has entirely focused on creating innovative solutions for the municipal mass transportation market.

NEXT now enters the global USD $2.3 trillion e-commerce market, which is driving a rapid transformation of the traditional retail supply chain. Built on the company’s patented modular transportation platform, the logistics solution is an automated electric vehicle system that is designed to be customisable and scalable for a

wide range of Mobility-as-a-Service (MaaS) applications. A fully integrated logistics solution, NEXT compliments warehouse optimisation strategies, and workflow environments of 3PL providers, Retailers and Manufacturers. The unique modular platform seamlessly integrates with mixed fleets of autonomous mobile robots existing operating systems. Upon completion of the automated warehouse loading process, individual vehicles autonomously connect to form a fleet, thus allowing the joint internal space to be utilised. While in route, parcels may autonomously shift amongst vehicles to ensure optimal final delivery. NEXT’s approach fundamentally differs from all current Autonomous Ground Vehicles or e-Shuttles in that vehicle open interior design layout can flexibly adapt to accommodate specific needs.

NEXT is introducing the world’s first Modular Mobile Parcel Locker.



To meet the growing global market demands of future multi-mode transportation and business applications, NEXT is introducing the world’s first Modular Mobile Parcel Locker. The unique locker solution will provide retailers with more control, while reducing the overall costs of delivery. The public will benefit from superior flexibility and ease of use as delivery locations are determined by customer proximity,. NEXT believes that the future of innovation is defined by co-innovation and co-ownership. Consequently, it is collaborating with several partners on various developments on a wide range of applications. With offices in Europe and the United States, NEXT has identified China and the Gulf region as its primary growth markets.




Furthermore, the fleets may be operated by a human driver, a remote human operator, or autonomously. They plan to operate on public roadways in the near term.



NZ Manufacturer September 2018



for all your Creative Needs





Contact Kim on M 027542 7111


and much more


Good design is obvious. Great design is transparent. -Joe Sparano

Questions to consider on robots and jobs Recent comments dismissing the prospect of artificial intelligence replacing human labour have sparked widespread reactions. The question of losing human jobs to AI “is not even on our radar screen” and would be a potential worry only in a distant future. For example, despite robots’ penetration of the U.S. economy being relatively limited thus far, their introduction has nonetheless been responsible for the loss of up to 670,000 jobs between 1990 and 2007. To put that number into perspective, consider that the entire U.S. economy added 235,000 jobs this February. During the period covered in the study, the number of industrial robots deployed in the U.S. increased from less than 0.5 robots per thousand workers to close to 2 robots per thousand workers. The impact on human jobs is likely to

rise substantially as the world economy expands robot deployment in industrial production and other sectors: Some estimates predict that 2015 levels will have increased fourfold by 2025. Even at existing rates of deployment, the introduction of robots has already had a clearly discernable impact on human employment and wages. Acemoglu and Restropo’s research suggests that every robot added to the economy reduces aggregate employment by 5.6 workers and wages by 0.5 percent. GDP is estimated to rise by a modest 0.13 percent with the use of one additional robot per thousand workers. Given the current concentration of robot deployment in manufacturing sector, blue-collar, routine task performers and less-educated workers are likely to suffer first, and potentially for a prolonged period, resulting in income loss, human capital erosion,

-Jack Gao

and social strains. More and more analysts and stakeholders are joining a conversation about how to manage the transition to different production processes, including whether to tax the use of robots so as to generate revenue to finance workers’ training and education. Writing to refute the idea that technological progress directly impoverishes unskilled workers, UC Berkeley economist Brad DeLong emphasised the role of public policy in achieving macroeconomic stability, maintaining proper distribution of income to ensure the system’s sustainability, and equipping workers with the training and skills required by the new methods of production. Such policies, though, would necessarily form part of a comprehensive package. Questions that may assume higher priority, however, are to understand


how the relative value of labour inputs in production changes with the introduction of robots and AI technologies; the scale and speed at which robots displace human workers; and the processes that could provide appropriate training and reintegration into the economy of workers displaced by robots.

The introduction of robots has already had a clearly discernable impact on human employment and wages.

NZ Manufacturer September 2018


The shortest way to do many things is to do only one thing at once. -Samuel Smiles

It’s too soon to call 3D printing a green technology Over the past decade 3D printing has captured the imagination of the general public, engineers and environmental visionaries. It has been hailed as both a revolution in manufacturing and an opportunity for dramatic environmental improvement. Realising environmental benefits

3D printing has two key attributes that lead enthusiasts to call it a “green” technology. First, many 3D printing systems generate very little waste, unlike conventional manufacturing techniques such as injection moulding, casting, stamping and cutting. Second, 3D printers in homes, stores and community centres can use digital designs to make products onsite, reducing the need to transport products to end users. However, there is limited quantitative analysis of the environmental performance of 3D printing. Much of it focuses only on energy used during production, rather than including impacts from raw materials production, use of the product itself, or waste management.

Mainly for industry Most consumers who have seen 3D printers know them as small, boxy machines like ink-jet printers. Those systems can make simple products such as doorstops, bottle openers and shopping bag handles, typically from a single material. In fact, 3D printing is a family of technologies used mainly in industry, where it is called additive manufacturing. These systems produce objects, based on digital information, by adding successive layers of materials. These items are then further processed and assembled into products such as jet engine components, hearing aids, medical implants and numerous different types of complex parts for industrial equipment. Additive manufacturing thus is a complement to conventional manufacturing processes, not a substitute for them. Industry has used additive manufacturing for several decades to create prototypes for use in product design and production planning. Now the technologies are becoming more sophisticated, and are being used to make end-use parts and products.

A 3D printed mouthpiece customised for each patient, printed from titanium and coated with a medical grade plastic, prevents dangerous pauses in breath during sleep.

Junk on demand? Additive manufacturing is not automatically good for the environment. Parts produced this way often require additional processing to give them the correct dimensions or appearance. This can consume resources or generate further environmental impacts. Seemingly mundane considerations, such as how additive manufacturing equipment is configured, the operational setup, and choices about processing details – for example, the thickness of layers being added – have a big impact on overall environmental performance. Scientists also are starting to investigate exposure to emissions of tiny plastic particles and safety hazards during use of additive manufacturing machinery. Importantly, additive manufacturing is not an inherently wasteless process. For example, some technologies require use of temporary support structures during production to prevent objects from warping or collapsing while they are being formed. These supports cannot always be reprocessed back into raw materials. It also is important to consider whether the plastics, metals or mixed materials used in parts made with additive manufacturing can be recycled.

Additive manufacturing is especially useful for making custom parts and small batches of complex objects at less cost than conventional manufacturing, which often requires time-consuming and expensive preparation of production equipment.

Another concern is that on-demand production and endless customisation could lead to dramatic increases in throw-away consumer products, or “crapjects,” as some commentators refer to them. Producing shoes, costume jewellery or household goods in varied colours or designs on demand could take “fast fashion” to a whole new level.



NZ Manufacturer September 2018

At the same time, decentralised, customised production is an intriguing environmental opportunity. It arises from a vision of producing objects in local factories, or even at home, and making just the specific product that is desired, rather than making an entire batch in a distant location, then shipping and warehousing the items in bulk quantities. Currently, however, most products that could be made this way must be simple enough to produce on entry-level 3D printers, usually from a single material. More importantly, processing raw materials for additive manufacturing can consume more energy than manufacturing with conventional manufacturing technology and shipping the final product to end users. Making spare parts through additive manufacturing has real potential for prolonging the lifespan of products, although it also could keep older, less energy efficient equipment in use longer.

resulting gains in energy efficiency, may offer the greatest environmental benefits from additive manufacturing.

Opportunities ahead Additive manufacturing is very effective for producing a small number of specialised parts or products. Its potential environmental advantages currently lie in making spare parts on demand, and especially in creating specialised parts that reduce energy consumption of products during use. Other gains may be realised as technologies continue to advance. Despite claims made about the environmental benefits of this technology, it is important to realise that these systems have not been designed with environmental efficiency in mind. While some 3D printing applications may not be environmentally desirable, there are many opportunities for improvement that have not yet been pursued. The first step is more research on the environmental impacts of producing materials used in 3D printing, how 3D products are used, and the wastes they generate.

To make this a common option, some parts will need to be specifically designed to be produced through additive manufacturing. Here, though, intellectual property issues could pose major challenges. Users of 3D printers may not have the legal right to produce parts and products from designs created by the original producers. And those producers may not find it in their economic interest to allow use of the design. Users of 3D printers may want to make spare parts for, say, an older car, but the car manufacturer may not want to share designs for those parts. Additive manufacturing has powerful capabilities to produce objects with very complicated shapes and internal spaces – for example, specialised parts for aircraft that can reduce weight, thereby lowering fuel consumption and greenhouse gas emissions. Many researchers think the capability to make such complicated parts, and

3D printed lightweight titanium cabin components for passenger aircraft made using selective laser melting. Centre for Additive Manufacturing, University of Nottingham, 2018, CC BY-ND

There is no such thing as a boring project. There are only boring executions. -Irene Etzkorn

Design global, manufacture local: a new industrial revolution? What if globally designed products could radically change how we work, produce and consume? Several examples across continents show the way we are producing, and consuming goods could be improved by relying on globally shared digital resources, such as design, knowledge and software. Imagine a prosthetic hand designed by geographically dispersed communities of scientists, designers and enthusiasts in a collaborative manner via the web. All knowledge and software related to the hand is shared globally as a digital commons. People who are connected online and have access to local manufacturing machines (from 3D printing and CNC machines to low-tech crafts and tools) can, ideally with the help of an expert, manufacture a customised hand. This the case of the Open Bionics project, which produces designs for robotic and bionic devices. There are no patent costs to pay for. Less transportation of materials is needed, since a considerable part of the manufacturing takes place locally; maintenance is easier, products are designed to last as long as possible, and costs are thus much lower.

This model is called “design global, manufacture local” and it could lead to sustainable and inclusive forms of production and consumption. It follows the logic that what is light (knowledge, design) becomes global while what is heavy (manufacturing) is local, and ideally shared. When knowledge is shared, materials tend to travel less, and people collaborate driven by diverse motives. The profit motive is not totally absent, but it is peripheral. Decentralised open resources for designs can be used for a wide variety of things, medicines, furniture, prosthetic devices, farm tools, machinery and so on. For example, the Wikihouse project produces designs for houses; the RepRap community creates designs for 3D printers. Such projects do not necessarily need a physical basis as their members are dispersed all over the world.

Finding sustainability But how are these projects funded? From receiving a research grant and individual donations (crowdfunding) to alliances with established firms

resources are limited, while non-material resources are digitally reproducible and therefore can be shared at a very low cost. Moving electrons around the world has a smaller ecological footprint than moving coal, iron, plastic and other materials. At a local level, the challenge is to develop economic systems that can draw from local supply chains. Imagine a water crisis in a city so severe that within a year the whole city may be out of water. A cosmolocal strategy would mean that globally distributed networks would be active in solving the issue. In one part of the world, a water filtration system is prototyped – the system itself is based on a freely available digital design that can be 3D printed. This is not fiction. There is a network based in Cape Town, called STOP RESET GO, which wants to run a cosmolocalisation design event where people would intensively collaborate on solving such a problem. The Cape Town STOP RESET GO teams draw upon this and begin to experiment with it with their lived challenges. To make the system work they need to make modifications, and

they document this and make the next version of the design open. Now other locales around the world take this new design and apply it to their own challenges.

Limitations and future research A limitation of this new model is its two main pillars, such as information and communication as well as local manufacturing technologies. These issues may pertain to resource extraction, exploitative labour, energy use or material flows. A thorough evaluation of such products and practices would need to take place from a political ecology perspective. For example, what is the ecological footprint of a product that has been globally designed and locally manufactured? Or, to what degree do the users of such a product feel in control of the technology and knowledge necessary for its use and manipulation?

The first version of OpenBionics prosthetic and robotic hands. from

Take another example. Small-scale farmers need agricultural machines to support their work. Big companies rarely produce machines specifically for small-scale farmers. And if they do, the maintenance costs are high, and the farmers must adjust their farming techniques to the logic of the machines. Technology, after all, is not neutral. So, the farmers decide to design the agricultural machines themselves. They produce machines to accommodate their needs and not to sell them for a price on the market. They share their designs with the world – as a global digital common. The contours of an emerging mode of production builds on the confluence of the digital commons of knowledge, software, and design with local manufacturing technologies.

and institutions, commons-oriented projects are experimenting with various business models to stay sustainable. These globally connected local, open design communities do not tend to practice planned obsolescence. They can adapt such artefacts to local contexts and can benefit from mutual learning.

Towards ‘cosmolocalism’ This idea comes partly from discourse on cosmopolitanism which asserts that each of us has equal moral standing, even as nations treat people differently. The dominant economic system treats physical resources as if they were infinite and then locks up intellectual resources as if they were finite. But the reality is quite the contrary. We live in a world where physical

Design is developed as a global digital common, whereas the manufacturing takes place locally, often through shared infrastructures.


NZ Manufacturer September 2018


We cannot become what we want to be by remaining what we are. – Max DePree

Businesses driving productivity and efficiencies with enterprise mobility Mobile devices, smart mobile platforms, collaboration tools and business applications are creating important efficiencies and opportunities in the workplace. With the app economy, especially business applications, mobility is expected to grow to US$6.3 trillion by 2021. (1) Ilan Rubin, managing director, Wavelink, said, “The ability to work anytime, anywhere, is changing how employees work, how they communicate and how they collaborate with colleagues, customers and partners for large and small businesses.” Mobility has introduced a new dynamic into business communications across industries: • Hospitals: regulated clinical workflows, nurse call and patient alarms can be managed and audited through smartphones and purpose-built applications. • Manufacturing: operations staff can interact with sensor-driven machine information to optimise productivity from their mobile device. • Retail: sales staff can improve the customer experience by knowing

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“There are genuine opportunities throughout the country.” ‘Cost me five grand’ engineer

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


• Hotels: seamless customer service is delivered as staff capture and communicate a customer’s wishes and assign tasks to ensure the request is met. Ilan Rubin said, “For today’s workforce, enterprise mobility is frequently the solution of choice as people increasingly work remotely and on the move, and see the landline as irrelevant. From a commercial point of view, businesses are viewing this increased mobility as an opportunity to introduce efficiencies, build new revenue streams, and introduce higher levels of customer service. “Of all the factors driving technological and behavioural change, mobility and cloud applications are probably the most significant and liberating. Together, they enable the introduction of enterprise-grade tools for communication and collaboration for businesses large and small.” The divide between personal and professional mobile devices is still a challenge for some industries. In a hospital, for example, devices need to

be sterile. In manufacturing, they need to be rugged. In the hotel or store, the device needs to be a recognisable workplace tool, not a personal device, to alleviate any concerns that staff are distracted by their personal phones, instead of responding to patient or customer requests.

enterprise-grade and business-aligned with the ability to support sophisticated and complex workflows or datasets. IT managers and system architects therefore have to plan for a majority of instances where handheld mobile devices are the primary endpoints for both data and voice.

So, work devices often need to be separate from personal ones, contrary to one common view of ‘bring your own device’ (BYOD) in the workplace.

“As a result, a coherent approach to enterprise mobility is required. This includes considering unified communications and collaboration as a strategic first step when building business applications. When these things are a mere afterthought, it creates adhoc processes and requires that employees use multiple devices and systems to access information they need to complete routine tasks.

Ilan Rubin said, “Although BYOD isn’t for all businesses, employees’ personal smartphone preferences and expectations have strong influence in the workplace, with employees of all ages expecting information and supportive apps, providing data and communications, at speed.” Many people today carry multiple phones or tablets, one for personal use and another for business, because there is an expectation that employees should be able to work wherever they are, whenever they want to, and be provided with the most appropriate device for the working environment. Ilan Rubin said, “The mobile platform is critical, because it must be

“To deliver a strong return on investment from mobile and the accompanying functionality, businesses need a mobility solution that encompasses: operational efficiency and mobile convergence; business workflows; employee and customer safety; customer service improvement; and regulatory compliance. Reference: (1)

Parents urged to take trades seriously

higher quality of life.


what stock is available at a glance with a mobile app.


Mata’afa went to university when he left school, but it was a costly mistake.

into practical work and working with tools.”

“I went to uni for one semester after high school and that cost me five grand. That’s when I realised I wasn’t really into just studying, I was more

He spent the next few years as a labourer in various sectors in New Zealand and Australia before starting an ATNZ apprenticeship in

NZ MANUFACTURER • October 2018 Issue • Features

NZ Manufacturer September 2018

maintenance engineering at Pacific Steel in Auckland. He’s now a qualified tradesman working at Steelpipe in Onehunga. “An apprenticeship is another pathway, you don’t have to go to uni.”


Disruptive Technologies

3d Manufacturing

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Climate Change

FoodTech PackTech 2018 Review

Supply Chain Advertising Booking Deadline – 15 October 2018

Editorial material to be sent to :

Advertising Copy Deadline – 15 October 2018

Doug Green,

Editorial Copy Deadline – 15 October 2018 Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email:

P O Box 1109, Hastings 4156, Hawke’s Bay


Email: Tel: 06 870 9029

At NZ MANUFACTURER our aim is to keep our readers up to date with the latest industry news and manufacturing advances in a tasty paper morsel, ensuring they do not get left behind in the highly competitive and rapidly evolving manufacturing world.

If you define the problem correctly, you almost have the solution. – Steve Jobs

How 3D printing could disrupt manufacturing economies From retail goods to medical implants and even food, 3D printing technology promises to change the way we think about everyday things. It’s difficult to predict what impact it will have on manufacturing but, whatever the precise effects, they are likely to be deep and permanent. Also known as “additive manufacturing”, 3D printing refers to processes where an object is put together by layering materials under programmed commands. Objects can be of almost any shape or geometry and are produced from digital model data or other electronic data sources, such as an Additive Manufacturing File. The advent of 3D printing opens the way for manufacturers to significantly reduce the production cost of their goods by eliminating many steps in the manufacturing process, such as casting and welding metal. It also reduces the complete production process to no more than three to four key players. With 3D printing, what would have initially been a series of stages of production could be cut down to a designer at one end, and the printer or “manufacturer” at the other. The middle players would most likely be suppliers of raw materials or “ink”. Such reductions in the manufacturing process could affect both regional and international production networks, possibly resulting in reduced capital requirements, warehousing and other logistics and transportation needs. This change in production systems could potentially alter the very idea of nations’ economic security. It could, for instance, wreck countries’ carefully laid development plans for creating employment and investment in logistics and warehousing, regardless of economic development level. What might happen to global production networks under such an influential technology?

production processes – perfected over 100 years ago with the Ford assembly line – on its head. The Ford assembly line centred on the idea of economies of scale. It posits that if you produce large numbers of a product, each additional unit produced will be less expensive to manufacture. 3D-printed Sanpang strawberry milk flavoured ice-creams at the Iceason ice-cream shop in Shanghai, China. Aly Song/Reuters The specialisation of the assembly line required only low-skilled workers, who could easily be taught simple repetitive steps. Standardised parts and more efficient assembly drastically reduced the cost of production and allowed more workers to be hired. With more labour being hired and steady incomes assured, people could afford the products that they were helping to build because of their low cost and easy availability. All this led to a growth in consumption, and manufacturing-led rapid economic development, along with supply chain networks, spread across the globe after the second world war. Taking root first in Japan, then Hong Kong, South Korea, Taiwan and Singapore, this global trend even transformed the most populous nation on earth, China,

Christopher H. Lim

Tamara Nair

Senior Fellow in Science, Technology & Economics at RSIS, Nanyang Technological University

Research Fellow in Non-Traditional Security Studies at RSIS, Nanyang Technological University

in the past 30 years.

rather than US$100,000.

It’s very likely that evidence of manufacturing success from these many countries has motivated initiatives such as the Indian government’s 2014 “Make in India”. The effort is part of a wider agenda to transform India into a global design and manufacturing hub.

What’s more, 3D printing provides potential for new design possibilities that can be tweaked or changed according to preference, even at the last minute. Ideas about stocks and logistics will evolve as companies might very well be shipping designs in the future instead of products.

After initiation of the program, India emerged the top global destination for foreign direct investment (FDI), receiving US$63 billion and surpassing both the United States and China. The initiative is premised on the fact that FDI in the manufacturing sector will create jobs for the masses. But 3D manufacturing technology poses a serious threat to this effort and others like it.

Supply chains and beyond The uniqueness of 3D printing lies in the fact that it reduces complexity. Parts and components, assembly steps, and costs can all be significantly reduced. The pioneer of the assembly line itself, the Ford Motor Company now uses 3D printing to produce and assemble prototypes. According to the company’s additive manufacturing technical expert, these prototypes can be ready for testing in under a week, down from eight to 16 weeks and cost just a few thousand,

These designs can then be printed or “manufactured” by the end-user at the location of their choice. This promises reduced capital requirements for physical infrastructure considering 3D printing services could function just as well in small spaces rather than taking up large areas as traditional manufacturing sectors do. The need for warehousing and transport, including transborder shipments, can also be reduced. It’s in this way that 3D printing could challenge economies of scale in the manufacturing sector and shorten the global supply chain networks, from multiple sites of production to a network that consists of material suppliers for 3D printing and the final producers at or near the end-user.

Major changes ahead The direct implication of this is an extensive disruption in global supply chains with jobs in manufacturing, logistics and warehousing being affected across many countries. Along with these, cargo transportation and port configuration would also be transformed due to the changes from economies of scale to the economy of one or few. With such a drastic technological tsunami in the manufacturing landscape, land-zoning policies might have to be reassessed. On one hand, 3D printing could potentially eliminate many large-scale assembly plants. On the other, many small and medium enterprises could serve as 3D printer services, now producing bespoke products.

The allure of manufacturing The introduction 3D printing has the potential to create a new production system by unleashing a disruptive power that the world has not experienced since the industrial revolution. This disruption could turn the global supply chain and existing


NZ Manufacturer September 2018



Perfection is not attainable. But if we chase perfection, we can catch excellence. – Vince Lombardi

Quality compressed air for trades and workshop applications Anyone looking for a super-quiet, efficient and cost-effective supply of quality compressed air for their workshop requires a user-oriented solution. With the space-saving i.Comp 8 and 9, Kaeser Compressors introduces a completely new compressed air supply concept that has been specifically developed with this field of use in mind. These units are tough, powerful, compact, easy to maintain, efficient and much more. At the heart of the new i.Comp family is a new drive concept, which provides a multitude of advantages. It delivers the necessary power to cover the required

compressed air demand with infinitely variable control. i.Comp family reciprocating compressors can operate with 100 percent duty cycles. Intelligent solutions - such as drawing the air for compression in through the piston head - ensure exceptional filling performance and, as a result, outstanding efficiency. With a volumetric flow rate of 412 to 580 l/min, the i.Comp Towers can be used for a wide range of workshop and trades applications and assure a constant pressure of up to 11 bar with absolute operational reliability. Made from roto-moulded polyethylene to enable optimum corrosion- and

impact-resistance, the attractive sound enclosure not only hides an advanced all-in-one compressed air station comprising a compressor and a refrigeration dryer, but also keeps sound levels to a minimum and helps retain system value. Kaeser’s field-proven Sigma Control 2 controller allows pressure preselection and infinitely variable speed operation, as well as connection to a master controller such as the Sigma Air Manager 4.0. Since i.Comp Tower systems deliver oil-free compressed air, no oil enters the compressed air supply itself. This in turn eliminates the potential for accumulation of oil-contaminated

condensate that would otherwise have to be carefully disposed of. In addition, there is no need for oil changes or oil inspection, which of course further reduces overall service costs.

It’s an EPIC performance from Lapp’s MH series A world leader in branded cable and connector systems and integrated electrical and automation engineering solutions, Lapp, is introducing to Australia its EPIC® MH module systems that combine energy, signals and data in one connector. The modular connector system - which is compatible with the market standard

– delivers significantly easier assembly of the modules in the fixed EPIC® modular frame, says Lapp Australia, which works in close partnership with Lapp product distributor ECS in New Zealand.

• Mechanical appliances

Lapp Australia General Manger Simon Pullinger says the stable frame of the innovative EPIC® connector system offers time-saving simplicity and in-service reliability. The EPIC® MH modular system can receive power of up to 200 A and voltages of up to 1000 volt. Its data rate is up to 10 GBIT/S and it offers a housing selection out of 138 million housing variations. The flexibility and cost-efficiency of the system makes it highly relevant to applications such as: watch?v=9Srm7FXaDjU

• Electronics and communications Lapp EPIC MH connector

• Measurement, testing and control technology



• Drive technology and industrial automation • Photovoltaic systems

Modules are firmly fitted into the MH system frame with a click system, using which every module is assembled with a click. Foreign modules can be mounted with the Lapp MH red clip. The system delivers high flexibility by the use of any combination of inserts in one connector. It is universal in application when combined with the broader Lapp families of products, including EPIC housings, SKINTOP cable glands, SILVYN conduits and the comprehensive ÖLFLEX cable products range.

EPIC MH components integrate into a comprehensive family of cable and automation solutions

Complementing the EPIC MH system is the MH Online tool for the design of individual housings for other EPIC® MH Modular system components and other EPIC inserts.

Counterfeit bearings pose serious safety risks Global bearings leader Schaeffler says counterfeit products are placing vital machinery, plant and operations at risk in Australia and New Zealand, as they do not have the same quality assurance and back-up in the field as the genuine Schaeffler branded product.

and gas, power generation, primary industries, rail and wind – comply with all relevant safety and quality Standards and are comprehensively backed in the field by Schaeffler’s own staff and network of distributors.

Schaeffler genuine bearings – which are crucial to machinery and plant with rotating or moving parts in industries such as bulk handling, mining, resources, manufacturing, materials handling, food and beverage, oil

“The best way for buyers to protect themselves and their customers from counterfeit bearings is purchasing only from a reliable source – such as direct from the manufacturer or through a certified distributor,” says Martin Grosvenor, Industrial Projects and



NZ Manufacturer September 2018

Services Manager, Schaeffler Australia. Counterfeit products are a frequent cause of personal injury and material damage to vehicles and industrial plants. According to a study published by the ICC (International Chamber of Commerce), the annual economic and social costs resulting from this amounts to AUD 2.25 billion worldwide (US 1.7 billion). The Internet has opened up more opportunities (and risks) for purchasers to buy bearings manufactured in

India, the Far East and Africa but sold through non-certified traders across the world, including a growing number of European outlets.

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Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty lies opportunity. - Albert Einstein


Hydraulink Australasia moves to protect industry from stoppages Hydraulink is continuing to invest in strong inventory of hoses, fittings, adaptors and accessories to ensure thousands of customers throughout Asia-Pacific are not held up by a global shortage of hydraulic hose manufacturing capacity. Hydraulink NSW State Manager Mark Andrews says a significant amount of quality Hydraulink branded product was added to Australasian inventory this month to provide certainty of supply to major industry customer groups involved in areas such as, construction and infrastructure, recycling wastes, earthworks and civil engineering, agriculture, mining, energy, oil and gas, materials handling, ports, transport, manufacturing, food and beverage distribution, utilities and public works. “Many thousands of individual stock items were added to inventory throughout the region in recent months, because a shortage of standard and custom hydraulic hose and fitting components can bring even the largest and most sophisticated machinery to a total standstill,” he said. “Hydraulink has a reputation for

always having product availability with quick turnaround times. This reduces delays in maintenance that can compromise safety and cause costly downtime. So we have acted, as an industry leader, to anticipate the needs of the market by carrying strong inventory levels across Asia-Pacific while the problem of inadequate hydraulic hose manufacturing capacity continues to persist, as it has for more than nine months now.” “As industries start to pick up – which we are particularly seeing with global OEM manufactures, mining, civil infrastructure, recycling and waste management companies at the moment – demand for hydraulic hoses and fittings increases, and a larger supply is needed,” said Mr Andrews. “If you look at companies like Caterpillar – one of the biggest OEMs in the world – they’ve seen steady

Hydraulink Australia Managing Director Denis Matulin, left, and Hydraulink NSW Manager Mark Andrews, right, with some of the company’s new hydraulic hose stock

growth for over a year now, and that’s taking up manufacturing capacity for hydraulic hose stock.” Hydraulink supplies hoses, fittings, adaptors and accessories to more than 400 hose service points throughout Australasia, supported by mobile units to provide 24/7 service from a single contact point whenever they are needed to prevent downtime, optimise uptime, and ensure the smooth flow of business. “As one of Australasia’s largest hydraulic hose and fittings service organisations, with thousands of customers extending from cities to the

outback, we are depended upon to have inventory on hand 24/7 to meet needs for rapid hose repair in situations ranging from emergency breakdowns through to customised hose fittings for OEMs or onsite hydraulic hose service in remote and large-scale projects.” Hydraulink services extend from some of the remotest mining and energy projects to some of the largest construction and infrastructure projects throughout Asia-Pacific, including major road upgrades, OEM equipment and vehicle service for a huge range of industries.




NZ Manufacturer September 2018



Great things are done by a series of small things brought together. – Vincent Van Gough

Sludge dewatering solves environmental and disposal issues A compact and cost-efficient alternative to conventional dewatering technologies is being introduced to Australia and New Zealand to eliminate costs and OH&S hazards associated with damper and heavier output from poultry processing and major food preparation operations. The KDS Multidisc Separator system from CST Wastewater Solutions – requires no washwater, while capturing 90-99 per cent of solids – is engineered to overcome the limitations of technologies such as screw presses, belt presses and centrifuges currently used. Applications include small-to-medium poultry, fish, meat and dairy plants as well as large-scale food and beverage kitchens and catering facilities which face the challenge not only of handling heavy, sticky wet waste, but also the volume and cost and OH&S hazards of transporting such unhygienic material to disposal facilities. Benefits of particular importance to installations for the poultry industry include: - Removal of solids from waste streams - Dewatering of sludges and solids - Screening and dewatering of chicken processing wastes - Removal and dewatering of solids from waste waters - Dewatering of chemical sludges from DAF floats

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The largest energy saving KDS unit can handle about 100kg DS (dry solids) an hour at 98 per cent solids capture, to produce this more hygienic and more compact output that is easier and cheaper to handle and transport. Used for dewatering of dissolved air flotation sludge – a very common application throughout waste water operations – The KDS achieves solids capture of 97 per cent thickened sludge at a dryness of 17 per cent. Waste activated sludge dryness levels are typically 15-18 per cent dryness. The high quality, Japanese-manufactured technology: - Uses minimal energy, consuming as little as 0.06kW hr of electricity - Operates at low (63dBa) non-intrusive noise and vibration levels - Requires minimal daily maintenance, saving cost and enhancing OH&S performance - Occupies typically half the space or less of conventional dewatering plants - Is available as fixed compact units

Poultry operations produce large quantities of watery sludge from their waste water processing operations. New KDS technology reduces this to drier, less hazardous and more easily transported output

or skid-mounted types that can be carried on truck or trailer This lighter, dryer waste it produces reduces the need for manual labour in cleaning and transport operations and curtails the need for staff to handle sloppy heavy waste potentially hazardous to health.

How it works The clog-free automatic liquid-to-solid waste separator dewaters solids and conditioned sludge on a self-cleaning wedgewire belt. This static belt is cleaned by a unique set of rotating

oval shape plates. After the drainage and thickening zone, the thickened sludge passes a dewatering zone which consists of an adjustable plate, actuated manually or by pneumatic cylinder to further squeeze the solids. The KDS’ unique self-cleaning dewatering and conveying system features an oval plate separation and transfer structure that prevents clogging and permits automatic continuous operation that handles oily and fibrous material with ease.

Counterfeit bearings pose serious safety risks bearings and needle roller bearings scrapped during this operation were part of a much larger seizure of confiscated counterfeit products.

Genuine Schaeffler bearings, such as the examples shown above, are designed and engineered for optimum reliability and performance. They undergo rigorous quality testing and meet or exceed all quality and safety Standards. From left to right, Schaeffler’s Spherical Roller Bearing, Mancrodur Tapered Roller Bearing and Insutect Hybrid Bearing

In 2013, Schaeffler destroyed 26 tonnes of counterfeit bearings with a value of more than AUD 1.5 million (EUR 1 million). The bearings were destroyed at the premises of INTERSEROH Franken Rohstoff, a metal recycling company based in Schweinfurt, Germany.

Schaeffler Australia performed a similar operation in Sydney in 2012, where they destroyed more than 9.5 tonnes of counterfeit INA and FAG branded product it had confiscated throughout the year. Schaeffler increasingly works with customs authorities to fight product piracy. Customs officials typically review incoming shipments to ensure they fulfil legal requirements and review whether any trademark infringements have occurred. In China, for example, both imported and exported goods are inspected.

A large proportion of the counterfeit products marked with the INA and FAG brand were seized in raids on bearing distributors across Europe, including Italy, Germany and the UK. The spindle bearings, spherical roller bearings, ball

This cooperation is important in order to effectively prevent counterfeit goods from reaching the international market in the most effective way possible. In 2016, a total of 182 seizures worldwide were made due to trademark violations suffered by the Schaeffler Group. 5,675,812 counterfeit parts were confiscated



NZ Manufacturer September 2018

during these raids. More recently, in March 2017, an importer in Turkey was imprisoned and counterfeit rolling bearings with a nominal value of 250,000 Euros (approx. AUD 400,000) were destroyed after customs officials at the port of Mersin began to suspect that the FAG-branded bearings may not be genuine and sent photographs to Schaeffler’s Brand Protection Team, who then took over and handled all subsequent measures. Enhanced counterfeit protection In order to help buyers check the authenticity of their products, manufacturers of bearings have introduced a variety of measures. Schaeffler has introduced the OriginCheck app, which provides end customers, distributors and authorities with an easy method of clarification when suspicion about a bearing arises. If one of these checks leads the user to suspect that a product may be counterfeit, he or she can use the OriginCheck app to take additional measures to obtain proper clarification.

Further investigation suspicion arises


Photos of the product, its packaging and markings play a decisive role in helping to clarify with certainty whether a product is an original or a counterfeit. The OriginCheck app gives the user a step-by-step explanation of which photographs are relevant, illustrated using examples. The finished photographic documentation can be e-mailed directly from the app to the central department responsible for combating product and brand piracy at Schaeffler. Since 2004, the team has handled several thousand cases, and is continuously developing additional measures to protect against product piracy and trademark infringements.

Innovations in taste for world markets

NZ Food Manufacturer brings you the latest news and developments in food from the land to the plate For further information and to advertise visit NZ Food Manufacturer

T 0064 6 870 9029



Planning is bringing the future into the present so that you can do something about it now. – Alan Lakein, author

Vesta-Central receives R&D grant to synchronise product data Vesta-Central, a cloud-based product data sharing platform for SMEs, has received a Callaghan Innovation R&D Growth Grant of up to $15m over three years to improve the quality of the data that underpins eCommerce.

pictures, pricing, descriptions and consumer information sourced directly from suppliers.

The platform detects and removes errors from product data and makes it easier to share, creating supply chain efficiencies across an entire industry.

Vesta-Central makes this process faster and more accurate than using spreadsheets and manual data entry, with customers reporting that they’ve reduced the time spent filling their online shelves from 52 weeks to just a few hours a week over six weeks.

Established in 2014, half of the Albany company’s 20 staff work in R&D. The firm is targeting emerging technologies like blockchain and AI to prevent data duplication and errors in data between trading partners.

“High quality, error free product data is a source of competitive advantage in the digital economy and Vesta-Central enables even the smaller suppliers and retailers to effectively collect, manage and share their data.

This will benefit suppliers with a wide product range and those who must comply with several different customer data standards, while offering retailers a single source of truth for their product information.

“Our investment in R&D is unlocking new verticals in New Zealand and Australia as bricks and mortar stores rush to move their inventory online and suppliers meet new global standards for data quality,” says Charles Nicolson, Vesta-Central CEO.

The platform automates moving the products of a traditional bricks and mortar store online, ‘stocking’ the digital shelves with the product

Initially developed for timber and building materials, Vesta-Central is being introduced in industries from

FMCG and recreational sports to cosmetics and pharmaceuticals. The platform has already managed over 1 million SKUs worth of data from 1000 suppliers and is growing rapidly. The global standards body GS1 and many international marketplaces are advocating for the adoption of a single, consistent data standard to reduce the costs and delays that arise from poor quality data. Inconsistent descriptions of a physical product and its ‘digital twin’ in an eCommerce store leads to poor customer experience, extra costs to reconcile and poses risks to product safety.

This is a key reason why Vesta-Central has formed an alliance partnership with GS1 New Zealand, the not-for-profit standards body for product master data. The relationship will see the two organisations collaborate around the use of GS1’s National Product Catalogue (NPC) to streamline the sharing of accurate product data between suppliers and their trading partners.

For example, commercial drivers relying on the online information about a product’s weight may inadvertently overload their vehicle if this differs from the real weight of the physical product.

“Having the supplier and retailer community align on industry agreed, structured product master data based on global standards reduces unnecessary complexity, cost, time to market and duplication of effort throughout the entire supply chain. Both sides of the trading relationship benefit because of it”, says Gary Hartley, General Manager – Customer, GS1 New Zealand.

Vesta-Central is seeking to partner with other like-minded middleware providers to create a fully integrated, end to end supply chain solution.

Businesses in New Zealand using Vesta Central’s platform include Winstone Wallboards, Paslode and Accent Tools, and in Australia ITI and KC Tools.

Combilift launches Combi-PPT Combilift has launched a new high capacity powered pallet truck – the Combi-PPT.

giving operators excellent visibility of even the bulkiest loads and their surroundings.

The powered pallet truck comes with standard lift capacities of 3,000 kg and 6,000 kg, with higher capacity models from 7,000kg to 16,000kg available on request.

The operator’s position also eliminates any possibility of crush risk when working in confined areas and prevents product damage.

It is a further addition to the Irish company’s growing pedestrian range with the optional operator’s platform enabling stand-on or walk behind operation. The Combi-PPT includes a feature common to all Combilift’s pedestrian models: its unique, patented multi-position tiller arm. This enables the operator to stand at the side of the unit rather than at the rear (as is the case with other walk behind brands),

“With the introduction of the Combi-PPT, very heavy loads can now be handled using these walk-behind machines, ensuring high levels of safety whilst guaranteeing efficient procedures even in confined spaces,” according to Martin McVicar, Managing Director, Combilift. “Combilift developed its first pedestrian models (the Combi-WR, Combi-WR4 and the Combi-CS) in response to an industry demand to move away from ride-on forklifts.

“As a company we are seeing a growing demand for pedestrian trucks, driven by safety concerns where customers and/or employees are in the vicinity of operating forklifts. “It is our intention to significantly expand our pedestrian forklift range as can be seen with the launch of the Combi-PPT. This forklift offers safer operation, maximum operator visibility and narrow aisle performance.” The Combi-PPT’s automatic folding platform is an added benefit for operators when large distances have to be covered in a warehouse or production plant.

The power steering, dual rear wheel drive and AC motor technology make it effortless and stress free for operators: its “glides” across the floor even when moving very heavy loads and its manoeuvrability enables tight corners to be negotiated safely and with ease. A range of optional fork lengths, widths and configurations is available – in line with Combilift’s policy of supplying customised solutions for individual customer requirements.

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NZ Manufacturer September 2018


However beautiful the strategy, you should occasionally look at the results. – Winston Churchill


Recycled plastics used to grow NZ’s largest bottled water production line The opening of a new multi-million dollar production line in Waikato will see a significant proportion of the New Zealand’s still bottled water packaged in recycled plastic bottles, according to manufacturers. The new production line at the country’s largest water bottling facility in Pokeno is capable of producing 220 million bottles made from recycled PET (rPET) plastic annually. NZ Drinks director Kyle Osborne says the move is part of their long term

journey towards a more sustainable product.

towards creating a more sustainable industry.

“As New Zealand’s largest bottled water producer we felt it was our responsibility to introduce the latest raw material and manufacturing technology as an important step

“In theory, there is no limit to the number of times the plastic from a bottle of water can be recycled into new products - what we are missing in NZ is the infrastructure necessary to achieve this.

in 100% recycled plastic bottles. “We first introduced recycled plastic into some of our ranges two years ago but the new line will allow us to continue to expand production of bottled water in recycled packaging, while at the same time substantially improving efficiency by reducing the weight of rPet used per bottle.

“Currently the economies of scale needed to introduce a suitable recycling facility are not there and Kiwis simply don’t consume enough of this type of product to make it viable - which leaves us out of step with bigger international markets such as Australia,” he says.

“The new line uses the latest technology from Krones, Germany and is capable of forming around 28,000 600ml bottles from recycled raw material and then filling them with water - every hour,” he says. Vesper says their ultimate goal is to see an industry that is capable of capturing consumer waste like empty plastic bottles and continuously reusing them.

NZ Drinks director Tony Vesper says the use of rPET should become the standard for still bottled water in this country.

He says a waste minimisation programme at their locally owned and operated manufacturing facility also sees all surplus plastic wrapping returned to source for recycling.

“With annual sales across our portfolio increasing at 139%, our Pure NZ label is the country’s fastest growing still water brand and will now be packaged

NZ Defence Force take top diversity award The New Zealand Defence Force (NZDF) initiative to tackle harmful sexual behaviour in the workforce has taken out the top award at the 2018 Diversity Awards NZ. The NZDF has rolled out mandatory Sexual Ethics and Respectful Relating (SERR) training to its 11,000 personnel since June 2017, aiming to create a workforce that is both empowered and prepared to address harmful sexual behaviour. Diversity Works New Zealand Chief Executive Rachel Hopkins says the programme, which won the Supreme Award, has focused on one of the most topical issues facing workplaces today,

creating genuine social change with a simple training strategy delivered to a large workforce in a very short timeframe. “The training covered green behaviour the NZDF wanted to grow, orange behaviour it wanted to confront and talk about, and red behaviour, which was completely unacceptable. It also challenged NZDF’s people not to be bystanders by emphasising that every one of us, as an individual, has the power to prevent harmful sexual behaviour,” she says. “Participants were encouraged to speak to three people about what they had learned, meaning the initiative

has impact and reach throughout the organisation and the community.” Assistant Chief Defence Human Resources Colonel Karl Cummins told the judges that NZDF is a reflection of society and is not immune to harmful behaviour; historic cases and reviews into NZDF contributed to recognising the need to undertake prevention activity. Judging Convener Neil Porteous says the judges were impressed by the progress made in a short time by an organisation with a hierarchical structure and a traditionally masculine culture.

“If an organisation like the military can address this issue in a little over a year, other organisations can certainly change their culture,” he says. The 2018 Diversity Awards NZ™, recognising organisations that champion diversity and inclusion in the workplace, attracted a record 93 entries this year. They were presented at a gala dinner in Auckland this evening, attended by more than 700 business representatives from the public and private sector and the Hon Carmel Sepuloni, Minister for Social Development and Disability Issues.

Diversity Awards NZ 2018 Award winners Supreme Award – New Zealand Defence Force

Highly Commended Recommendations

Empowerment Award – Ministry of Justice

Primary Industry Training Organisation – Diversability Award

Tomorrow’s Workforce Award – Fletcher Building

Cargill Enterprises – Skills Highway Award

Skills Highway Award – Griffin’s

IAG New Zealand – Work Life Balance Award

Positive Inclusion Award – MidCentral District Health Board

Xero – Work Life Balance Award

Cultural Celebration Award joint winner – New Zealand Trade and Enterprise

St John Youth – Emerging Diversity and Inclusion Award

Cultural Celebration Award joint winner – Waitemata District Health Board Work Life Balance Award – RIVAL Wealth Walk the Talk Award Walk the Talk – Sudesh Jhunjhnuwala, Sudima Hotels & Resorts

The judges also gave a special acknowledgement to Fonterra Co-operative Group for its ground-breaking work in bringing women into the workplace at the company’s Saudi Arabia operation.

Emerging Diversity and Inclusion Award – New Zealand Defence Force


NZ Manufacturer September 2018



If you don’t know where you are going, you’ll end up someplace else. – Yogi Berra, former New York Yankees catcher

SYSPRO Australasia appoints new sales manager Global ERP solutions provider SYSPRO, has appointed Greg Urand in the role of Sales Manager with immediate effect. Greg will be responsible for driving sales aimed at increasing market presence across Australia, New Zealand, Papua New Guinea and Pacific Islands. Greg has over 20 years of sales management and business development experience in technology having worked for companies including Exact, CCH, Travelport and Targus.

expansion to exceed corporate objectives.



SYSPRO is a global, independent provider of industry-built ERP software designed to simplify business complexity for manufacturers and distributors. Focused on delivering optimized performance and complete business visibility, the SYSPRO solution is highly scalable, and can be deployed on-premise, in the cloud, or accessed via a mobile device. SYSPRO’s strengths lie in a simplified approach to technology, expertise in a range of industries, and a commitment to future-proofing customer and partner success.

He is passionate about empowering multi-faceted teams to drive extensive revenue growth, performance improvements, and business

SYSPRO has more than 15,000 licensed companies in over 60 countries across

James Hardie appoints Jack Truong as CEO successor James Hardie has announced that Dr Jack Truong, currently the Company’s President - International since April 2017, will succeed long-standing CEO Louis Gries as the incoming CEO of James Hardie Industries. Dr Truong who continues to be based out of North America, will be formally appointed to the CEO role toward the end of the company’s 2019 fiscal year, at which time Mr Gries will step down as CEO and from the Board. The Board has determined that a structured transition is in the best interest of shareholders and an approximate six-month handover period has been established, during

which time Mr Gries will remain in the CEO role and Dr Truong will become President and Chief Operating Officer with the responsibility of running the Group’s global business. He currently has responsibility for the operations of the Asia Pacific Fibre Cement business and the Europe Building Products business. Jack Truong offers the ideal combination of commercial expertise, operational excellence, and leadership in order to continue to grow the business and maintain the industry-leading performance, across multiple geographies, established by Louis Gries over a long period.

Louis Gries and Dr. Jack Truong.

Louis Gries joined James Hardie in 1991, becoming CEO in February 2005. During this time James Hardie delivered strong top-line growth

and differentiated returns while increasing the market capitalisation from less than A$3.0 billion to A$9.21 billion.

World-leading health and safety innovator to join WorkSafe New Zealand One of the world’s most innovative health and safety practitioners is to join WorkSafe New Zealand as Chief Advisor Health and Safety Innovation. Daniel




experience in developing new approaches to improving health and safety performance in a work environment, and WorkSafe’s Chief Operating Officer Phil Parkes says attracting Mr Hummerdal to WorkSafe is a coup for the agency. ‘Daniel is an extraordinary talent and he will be at the forefront of moving the health and safety system in New Zealand toward new practices, tactics and strategies,’ Mr Parkes says. ‘He brings a background in


NZ Manufacturer September 2018


the development and implementation of Safety II and Safety Differently approaches to health and safety. These approaches move health and safety practices from pure compliance to a people and success-led approach and they are accepted worldwide as the future way of improving health and safety performance.’ ‘WorkSafe is mandated to lead the country’s health and safety system towards significant improvements, and the system needs people like Daniel to challenge the traditional models and spark new approaches,’ Mr Parkes says.

Mr Hummerdal says the Chief Advisor Health and Safety Innovation role is unique amongst health and safety regulators around the world. ‘Health and safety practitioners in New Zealand have always shown they’re open and willing to try new ideas, more so in my experience than anywhere else in the world. This presents me with a fantastic opportunity to try some cool new ideas to create a new future for health and safety in New Zealand,’ he says. Mr Hummerdal will take up his role on 1 October.


Unless commitment is made, there are only promises and hopes; but no plans. – Peter F. Drucker, author and educator

AI can’t solve everything The hysteria about the future of artificial intelligence (AI) is everywhere. There seems to be no shortage of sensationalist news about how AI could cure diseases, accelerate human innovation and improve human creativity. Just looking at the media headlines, you might think that we are already living in a future where AI has infiltrated every aspect of society.

Neural networks – easier said than done

While it is undeniable that AI has opened up a wealth of promising opportunities, it has also led to the emergence of a mindset that can be best described as “AI solutionism”. This is the philosophy that, given enough data, machine learning algorithms can solve all of humanity’s problems.

One of the most promising varieties of AI technologies are neural networks. This form of machine learning is loosely modelled after the neuronal structure of the human brain but on a much smaller scale.

But there’s a big problem with this idea. Instead of supporting AI progress, it jeopardises the value of machine intelligence by disregarding important AI safety principles and setting unrealistic expectations about what AI can really do for humanity. AI solutionism In only a few years, AI solutionism has made its way from the technology evangelists’ mouths in Silicon Valley to the minds of government officials and policymakers around the world. The pendulum has swung from the dystopian notion that AI will destroy humanity to the utopian belief that our algorithmic saviour is here. We are now seeing governments pledge support to national AI initiatives and compete in a technological and rhetorical arms race to dominate the burgeoning machine learning sector. For example, the UK government has vowed to invest £300m in AI research to position itself as a leader in the field. Enamoured with the transformative potential of AI, the French president Emmanuel Macron committed to turn France into a global AI hub. Meanwhile, the Chinese government is increasing its AI prowess with a national plan to create a Chinese AI industry worth US$150 billion by 2030. AI solutionism is on the rise and it is here to stay.

While many political manifestos tout the transformative effects of the looming “AI revolution”, they tend to understate the complexity around deploying advanced machine learning systems in the real world.

Many AI-based products use neural networks to infer patterns and rules from large volumes of data. But what many politicians do not understand is that simply adding a neural network to a problem will not automatically mean that you’ll find a solution.

departments that each require special permissions to be accessed.

Similarly, adding a neural network to a democracy does not mean it will be instantaneously more inclusive, fair or personalised.

Above all, the public sector typically lacks the human talent with the right technological capabilities to fully reap the benefits of machine intelligence.

Challenging the data bureaucracy

For these reasons, the sensationalism over AI has attracted many critics. Stuart Russell, a professor of computer science at Berkeley, has long advocated a more realistic approach that focuses on simple everyday applications of AI instead of the hypothetical takeover by super-intelligent robots.

AI systems need a lot of data to function, but the public sector typically does not have the appropriate data infrastructure to support advanced machine learning. Most of the data remains stored in offline archives. The few digitised sources of data that exist tend to be buried in bureaucracy. More often than not, data is spread across different government

The growing role of artificial intelligence in our lives is ‘too important to leave to men.’

Similarly, MIT’s professor of robotics, Rodney Brooks, writes that “almost all innovations in robotics and AI take

One of the most promising varieties of AI technologies are neural networks.

far, far, longer to be really widely deployed than people in the field and outside the field imagine”. One of the many difficulties in deploying machine learning systems is that AI is extremely susceptible to adversarial attacks. This means that a malicious AI can target another AI to force it to make wrong predictions or to behave in a certain way. Many researchers have warned against the rolling out of AI without appropriate security standards and defence mechanisms. Still, AI security remains an often-overlooked topic. Machine learning is not magic If we are to reap the benefits and minimise the potential harms of AI, we must start thinking about how machine learning can be meaningfully applied to specific areas of government, business and society. This means we need to have a discussion about AI ethics and the distrust that many people have towards machine learning. Most importantly, we need to be aware of the limitations of AI and where humans still need to take the lead. Instead of painting an unrealistic picture of the power of AI, it is important to take a step back and separate the actual technological capabilities of AI from magic.


NZ Manufacturer September 2018


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