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Manufacturer April 2013 April NZ 2013

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Export News

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3D potential locally and globally

Nutritional plant enters production

estland Milk Products, New Zealand’s second largest dairy cooperative, has made a bold strategic step into the international high-value paediatric nutrition market with the commissioning of a state-of-the-art nutritionals plant at Hokitika. The new multi-million dollar plant commenced commercial production in February and already has committed customers, taking Westland from being a wellrespected dairy ingredient supplier to an exciting new entrant in the infant nutrition sector. In technical terms, the new Westland nutritional plant is a state-of-the-art Tetra Pak system comprising a wet mix batching system including wet and dry macro and micro ingredient handling areas, oil dosing, vacuum mixing, homogenisation and pasteurisation. This wet mixing approach ensures a high degree of product composition

The factory-floor knowledge economy.

Driving future business growth.

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control and consistency which is crucial for customers. Traceability of all ingredients is enabled through detailed logs and batch control software. The products are dried through evaporation and spray drying, and packed in a newly created high-hygiene area which staff enter via a second redline zone and wear full coverage hat and facial masks in addition to the usual overalls, hats and boots. These measures reflect the elevated levels of hygiene and control required beyond Westland’s already strict quality standards. Westland’s Production Manager Bernard May says building the plant was an exercise in cooperation with more than 200 people involved. At its peak, some 38 mechanical installers and 40 electricians alone were working on the site. In all some 60,000 hours went into bringing the nutritionals plant to completion. Continues page 20

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Advanced Manufacturing

Emerging Technologies

Competing for China.

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(From left) Art and Design Technician Andrew Collier and Engineering Tutor Alex Greasley discuss CPIT’s 3D printer while Rich Humphrey films a video for the CPIT website

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D printing has been touted as the second industrial revolution. Globally, current developments are simply staggering and in New Zealand local businesses must embrace the technology at entry level in order to keep up with the play. One way business can get involved is by engaging with the tertiary sector. In Christchurch, the CPIT Foundation purchased a midrange 3D printer for the institute last year. The intention is threefold; up skilling current students, staff research opportunities and industry collaboration. Engineering, architectural studies and art & design students will have a working knowledge of the technology before they graduate.

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Tutors will extend local expertise through research projects, some of which will directly address industry challenges. Local business, who aren’t yet ready to invest in this technology, can use the 3D printer on a commercial basis to explore the cost and time-saving potential of rapid prototyping and sophisticated modelling. 3D printing has long since emerged from research departments where it started to evolve over two decades ago. Today it’s hard to keep pace with all the different approaches to producing a solid three-dimensional object from a CAD file and the novel applications to which 3D printers are being put - a team in Spain, for example, recently printed food.

Continues page 8

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NZ Manufacturer April 2013

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NZ Manufacturer April 2013

CONTENTS Advisors

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DEPARTMENTS

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• Rata buys Paddon in rural manufacturing move. • Not a good look.

EXPORT NEWS Exporting to China.

Sir William Gallagher

Is the CEO of Gallagher Group Ltd. He is also a Fellow of NZ Institute of Management.

Page 10 – DEVELOPMENTS – Perfecting the small stuff reaps huge rewards.

SOUTHMACH 2013

Homershams at SouthMACH 2013.

DEVELOPMENTS

• South Island businesses more optimistic. • One small step for man.

Stephen Drain

Stephen Drain is a Director at PwC specialising in Leadership Development and Forensics.

MANUFACTURING TECHNOLOGY • 4D printing touted as way of the future. • Next generation of compact drives launched.

AUSTECH 2013

High performance solutions. Plasma cutting through work.

WORKSHOP TOOLS

Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, New Zealand’s largest business advocacy group, representing businesses of all sizes.

• Unique resistance welding solutions. • Anything but mean. • System simplifies troubleshooting.

WORKSHOP TOOLS

• PowerMILL Robot Interface for machining with robots. • High powered work lamp.

EMERGING TECHNOLOGIES Driving future business growth.

Brian Willoughby Page 21 –ADDITIVE MANUFACTURING – Injection moulding machines.

Is president of the NZ Manufacturers and Exporters Association and managing director of Contex Engineers and Plinius Audio.

SUPPLY CHAIN

Crafting logistics provider contracts.

LEAN MANUFACTURING ANALYSIS

Small to medium businesses finally optimistic. The factory-floor knowledge economy.

DEVELOPMENTS

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.

• Safety in Lean manufacturing. • Lean manufacturing initiative set to grow.

ADVANCED MANUFACTURING

Catherine Beard

Page 14 – AUSTECH 2013 – Machining centre offers precision and productivity.

ACROSS THE DITCH

Page 23 – DEVELOPMENTS – Polar Rover first windpowered Antarctic explorer.

• Partnership offers significant benefits. • PowerbyProxi announces funding.

FOOD MANUFACTURING

Professor John Raine ➡ Is Head of the School of Engineering and Pro Vice Chancellor – Innovation and Enterprise at the Auckland University of Technology.

• New intelligent Tetra Alcip. • Affordable technology for food industry.

ENERGY REPORT

• Behaviour lags behind sentiment for alternative fuels. • New bending technology for energy efficiency systems.

REAR VIEW

Levelling the Playing Field.

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BUSINESS NEWS

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Page 26 – ADVANCED MANUFACTURING – What is Advanced Manufacturing?

Bruce Goldsworthy

An advocate for NZ manufacturing for 40 years, he was Chief Executive of the Auckland Manufacturers Association for seven years He has been Manager of EMA’s Advocacy and Manufacturing Services, and lately manager for Export New Zealand in the north.

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NZ Manufacturer April 2013

EDITORIAL Publisher

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

MANAGING Editor

Doug Green T: +64 6 870 9029 E: words@xtra.co.nz

CONTRIBUTORS

Nick Inskip, Sandra Lukey, Dawood Latif, Adam Bennett, John Raine.

ADVERTISING

Doug Green T: + 64 6 870 9029 E: words@xtra.co.nz

Design & PRODUCTION

Karl Grant T: + 64 6 870 9028 E: daylightmarketing@xtra.co.nz

WEB MASTER

Dan Browne E: dan@membrana.co.nz

PUBLISHING SERVICES

On-Line Publisher Media Hawke’s Bay Ltd

DIGITAL SUBSCRIPTIONS

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A mediocre person tells. A good person explains. A superior person demonstrates. A great person inspires others to see for themselves. – Harvey Mackay

Youth unemployment a concern

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studied with interest the report out recently 2102 Smart Waikato Youth Employment Survey which was undertaken to gauge the work experience and employment situation for 15 to 24 year olds.

Respondees to the survey were pretty mixed in their appreciation of what their youth have to offer. Comments from “They have no interest in working and a lack of aptitude or ethics” were common as was “expect top money for little or no return.” Another said: ‘While there are some stars out there, there are a lot of bad seeds. Too many young staff expect everything to be handed to them on a silver plate and the art of working for something has long been forgotten.” About 280 Waikato employers representing approximately 12,000 Waikato employees responded to the online survey. So how are you an employer, in other parts of the country finding the attitude of youth to work? Can you get, in your region, young staff when you need them? How do you find their attitude? Are there talented young people out there you are employing or considering employing? Let’s look at the whole thing. Young workers need training, they need leadership, they need inspiration and they need a light at the end of the tunnel. There are a lot of highly motivated young people doing good things in companies who have drive and ambition and want to get ahead in the world. They all don’t want to work for the youth wage; they want a fair return for a fair effort. As far as the unmotivated ones are concerned, well, there are always people like that. But at the same time the system is not meant to fail them; to cast them aside as the easiest thing to do. Being unmotivated and not self motivated may only be a line crossed when the future is secure and something they can believe in. New Zealand needs skilled people; we plan years ahead to get the balance right to ensure our manufacturers are able to produce on time quality products for their markets.

Vol. 4 No. 4 April 2013 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.

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Doug Green


NZ Manufacturer April 2013

Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion. – Jack Welch

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BUSINESS NEWS

Rata buys Paddon in rural manufacturing move

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arm machinery maker Rata Industries Group Ltd has purchased Geraldine-based Paddon Direct Ltd. The acquisition brings together manufacturing divisions that produce front-end loader attachments, primary and secondary cultivation equipment, fertiliser spreaders, drills, rakes and tedders. Currently operating out of Treneglos Street, Washdyke, Timaru, premises, Rata will relocate to the Paddon premises in Ferrier Road, Winchester, South Canterbury, and transfer its staff to what will be a new rural manufacturing hub there. A Rata spokesperson said the acquisition was keenly welcomed by both companies and would streamline equipment supplies and backup service to farmers across the country. “We can now offer a truly onestop shop to the dealers and the wider farming community. “The purchase brings economies of scale, which means savings that can be passed on to farmers. “We are also excited at the opportunity to parallel market across all our manufacturing divisions, meaning events such as National Fieldays can feature a more comprehensive range of implements and attachments under one the umbrella,” the spokesperson said.

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And that range of companies and brands is extensive. Rata brings to the mix innovative and versatile front-end loader and material handling attachments as well plough and cultivation equipment, which it has been making to the most exacting standards in New Zealand since 1981. Its customdesigned Rata 803 plough range has received wide acclaim nationally with testimonials from independent farmers who have had individual and varying requirements to suit their paddock topography. Agricultural contractors have also offered rave reviews. Rata Group Sales Manager Glenn Walton is in no doubt as to why Rata has grown from small beginnings to the agricultural manufacturing corporate it is today – “we know how to make things that make a huge difference to the daily chores around the farm”. But there is another secret to the success of both Paddons and Rata – the equipment is designed in New Zealand, built in New Zealand, marketed and sold in New Zealand by New Zealanders who know New Zealand conditions. Since Bruce Paddon set up Paddons in 1975, this particular company has dominated the South Island market in hay rakes, side rakes and V-rakes, as well as marketing

Fresh face for chamber board

aikato Chamber of Commerce has a new face on its board in the form of Hamilton accountant Andrina Atkins. Andrina is Putaruru born and bred and works as a manager at PricewaterhouseCoopers. ”A lot of my client base is small and medium business owners so taking place on the chamber board is a natural step,” Andrina said. Andrina said being involved at the coal-face with the chamber was an opportunity for her to ‘give something back’ to the business community. “I love helping businesses and this role is a great way for me to be an advocate and also bring a new perspective to the board” she said. Andrina has a Bachelor in Business Studies from Wintec and joined PwC five years ago

after working in various smaller accounting firms. Chamber president Tony Begbie is delighted to welcome Andrina to the board. “She brings strong financial acumen, national project experience and diversity to the chamber,” he said.

and servicing Willett tandem and offset discs, ridger drills and roller drills. In 2005 Paddon Direct Ltd purchased Willett Implements which has been based in Invercargill for 80 years. That company’s ploughs, ridgers, disc harrows, drills, chain harrows and Cambridge rollers have been produced in their hundreds over the years and sold mainly into the Southland market. The company is the only New Zealand firm continuing to manufacture ridgers. These implements are designed around the sometimes hard and stoney river flat areas so common in many parts of the country. Also dominant on the New Zealand agricultural scene is the Vogal brand of fertiliser spreaders

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and grain feeders and Italian Sitrex tedders, rakes and mowers. The Rata, Paddon, Willett, Vogal and Sitrex combination represents more than 165 years of experience in the New Zealand farming industry. The takeover of Paddons by Rata will create some new jobs, while rationalising some plant and vehicle resources and broadening the range of implement design options for farmers. Rata Industries Group Ltd welcomes the farming community to inspect its now widened range of products at the National Fieldays with a personal invitation from Mr Walton – “talk to us about your personal on-farm requirements. We will build especially for your land”.

Not a good look

n the last quarter of 2012 Smart Waikato’s Youth Employment Survey was conducted to gauge the work experience and employment situation for 15 to 24 year olds. About 280 Waikato employers representing approximately 12,000 Waikato employees responded to the online survey. Overall there is a considerable lack of engagement from Waikato employers in terms of linking youth into their workplace.  There are various reasons cited for this including businesses not having enough work, the relatively high expense of employing young people compared with experienced people, the poor work ethic and attitude of some youth, and difficulty in accessing youth of a high calibre.  However, there were a significant number of respondents who would consider offering more work experience opportunities, internships, apprenticeships, cadetships and jobs to youth if barriers were removed. More than half of the respondents to the recently-released survey offer no work experience to young Waikato based students or jobseekers and 42 percent employ no 15 to 24 year-olds. 82 percent of employers did not offer internship opportunities. It is time for employers to form better relationships with tertiary providers and secondary schools, providing better career pathways for young people. Smart Waikato’s BEST Youth initiative aims to assist in this process. Referrals top tool for employing the young It’s a case of not what you know but who you know for young

Waikato job seekers, according to results of a new survey of employers. The Smart Waikato’s Youth Employment Survey showed most bosses surveyed use referrals as their number one tool for hiring young people. The survey of 280 bosses with about 12,000 staff showed 54.8 per cent of respondents used referrals as their favourite recruitment channel, followed by the internet at 40.5 per cent. Qualifications are low on the priority list for bosses looking for young talent, with about 80 per cent of respondents listing a positive attitude, willingness to learn and good work ethic as their preferred attributes. Communication skills, problem solving ability and drivers’ licence are their next on the list with qualifications significantly lower at 16.5 per cent. When asked for general comments about youth and employment more than half of 100 responses from bosses were negative. “They have no interest in working and a lack of aptitude or ethics and expect top money for little or no return,” one employer said. Another said: “While there are some stars still out there, there are a lot of bad seeds. Too many young staff expect everything to be handed to them on a silver platter and the art of working for something has long been forgotten.” About 20 per cent of the survey respondents made constructive comments about young prospects: “We employ youth to find tomorrow’s key staff,” one said. “Youth unemployment is a global issue that every adult New Zealander should play a full part in reducing,” was another response. www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

EXPORT NEWS Competing for China:

In the end, all business operations can be reduced to three words: people, product and profits. Unless you’ve got a good team, you can’t do much with the other two. – Lee Iacocca

NZ needs to trade up to an investment relationship

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lobal CEOs rate China as the world’s top destination for foreign investment, which is consistent with its significantly expanding economy, according to a global survey by PwC and the China Development Research Foundation. The survey ‘Choosing China: Improving the investment environment for multinationals’ found more than half (56%) of CEOs surveyed chose China above other major and emerging economies including Brazil, Russia, India and the US. Worldwide CEOs say they were attracted to China’s expanding consumer markets, skilled talent pool and government incentives. “China attracted NZ$133.8 billion (US$111.7 billion) of foreign direct investment in 2012 from multinationals seeking to tap into China’s success,” says PwC New Zealand Partner and China Sector Leader Colum Rice. “China’s economic transformation is absolutely dependent on its ability to continue to attract foreign investment. Yet, it faces new challenges as emerging markets become more competitive. Over recent years, we have seen increasing levels of Chinese investments into New Zealand but what the survey highlights is the emphasis that China is placing on attracting inbound investment. This brings into sharp focus the increasing level of competition which New Zealand faces for foreign direct investment,” adds Mr Rice. The survey found less than 10% of CEOs from smaller companies (operating in less than five countries) have operations in China. “China now needs to promote itself as a place of opportunity for smaller and more specialised businesses to keep the investment renminbis flowing in. All the low hanging fruit is gone and this places Kiwi businesses in a strong position. “New Zealand needs to work hard at selling the benefits we can offer growth hungry China, in terms of the innovation we can bring and financial capital we can help attract. “For Kiwi companies with the IP, brands, relationships and knowledge Chinese businesses crave, a partnership could offer a first step into global trade, as well as opening doors to other global markets,” says Mr Rice. According to the survey, CEOs highlighted a drive to increase www.nzmanufacturer.co.nz

China’s economic transformation is absolutely dependent on its ability to continue to attract foreign investment. domestic consumption (48%), deepen financial reforms on foreign exchange and interest rates (43%), and doubling per capita incomes by 2020 (41%) as the top three policy commitments that would have the greatest impact on their businesses. “The Chinese Government recognises it needs to make reforms to stay competitive as a destination for foreign investment if it is to achieve its goal of transitioning from a ‘made in China’ to a ‘designed in China’ consumption-driven economy,” says Mr Rice. “Seventy percent of CEOs who have operations in China say they are planning to increase their investments, which should give New Zealand businesses confidence China is a wise market of choice,” adds Mr Rice. When asked about further measures to improve China’s competitiveness, CEOs highlighted improving government transparency and anti-corruption (73%),

reducing economic intervention (53%), and speeding capital market reforms (30%) as areas for further improvement. “As China moves up the value chain and partners more with the global community, we can assume the influence and need to work with others will drive China’s continued reforms. “China is such a fast growing and dynamic market. New Zealand’s political and trade relationship

countries around the world are focusing on China and the inbound and outbound investment opportunities. We need to move fast to transform into long-lasting investment partnership or we risk missing the opportunity,” concludes Mr Rice.

Manufacturers Newsfeed

Port essential for Auckland and the country

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ny decision not to let Auckland’s port expand under its new plan is effectively a decision to close it down, the Employers and Manufacturers Association says. “In the absence of an alternative, and there is none, the port at Auckland is essential for the city and for New Zealand,’ said Kim Campbell, EMA’s chief executive. “We can’t understand where those opposing it are coming from, with so many jobs at stake. “Business and consumers need the port to expand its footprint modestly so it can re-organise its operations to allow it to become at least as competitive as the Port of Tauranga.

“But nothing will happen until the long running industrial dispute with the Maritime Union is settled. “The port has said it will abide by the mediator’s ruling on this and its time the union did likewise. “Without the planned development all our northern ports will be full to capacity in short order. “Tauranga couldn’t handle the recent overflow from Auckland, and expansion at Whangarei is limited. “Shifting the port elsewhere would incur costs of at least $4 billion plus back up infrastructure. “Access to waterfront land is being satisfied by the Wynyard Quarter developments and that will soak up investment for the foreseeable future.”


NZ Manufacturer April 2013

SOUTHMACH 2013

A real decision is measured by the fact that you’ve taken a new action. If there’s no action, you haven’t truly decided. – Tony Robbins

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Homershams at SouthMACH 2013

ince 1946, Homershams have supplied the industrial market with instrumentation and are pleased to be presenting at SouthMach 13. This year we will be showing products from 3 manufacturers. • Honeywell Environmental Combustion & Control • Additel • Dwyer Instruments Inc. • Rae Systems Additel are a US based company manufacturing Process Tools (420mA Loop instruments), digital pressure gauges and calibration pressure pumps. We’ll have on demo the Additel 221a Temperature Loop Instrument, which has been described as the “next most useful too after a screwdriver!” This instrument can source, simulate and substitute all the control components of an industrial temperature control loop for fault-finding and calibration plus many, many more functions. As recently as last week, I took a call from a customer, who had a dryer, controlled by a damper motor, driven by 4-20mA, so that the temperature can be controlled by opening and closing a damper. My

customer’s process wasn’t working correctly. Using the Additel 221a, I was able to check the temperature sensor, substitute the temperature sensor, and check the controller) and then send a 4-20mA signal to the damper motor, which turned out to be the problem. Dwyer Instruments have a 620 page catalog covering a vast range of instruments. Homershams hold good stocks, but Air-ship EVERY 10 days! So practically everything in the catalog can be on your desk within 2-weeks! Ask for your free copy. Honeywell Environmental & Combustion control (ECC) are the division that market: • Domestic, Commercial & Industrial Thermostats • Water/Steam Valves • Valve Actuators and Damper controls • Gas detection

Rae Systems

Stop Press! Homershams now have access to Rae Systems gas

detection product. This includes portable and fixed systems including 4-gas, LEL, single gas and PID type.

Burner Control

Homershams are the exclusive South Island distributor for Honeywell ECC. We’ll have a representative from Honeywell will us on the stand, with more than 25-year experience, so bring your questions!

See how the latest enhancements in SolidWorks can improve your design processes. Contact us now for a demo and pricing! 0800 765 438 or info@solidtec.co.nz

See us on Stand 55

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NZ Manufacturer April 2013

SOUTHMACH 2013 A 3D mouse for your fingertips W

Anger can be an effective negotiating tool, but only as a calculated act, never as a reaction. – Mark McCormack

e all go through phases where we feel like we’ve seen every possible Kickstarter project that we’d ever want. And then one like Mycestro comes along and reminds us that this is just the tip of the iceberg. It’s a 3D mouse that you strap to one of your fingers and it looks like it could become a huge asset for multi-tasking. If you think about how you use your computer, be it a desktop or laptop, you know that your hands move from the keyboard to the trackpad or mouse constantly, over and over again. It’s wasted movement for the most part, especially when you see the possibilities that Mycestro unlocks. The only thing left is for it to get funded, because it looks like all of the prototypes work perfectly. Features include touch buttons that allow you to navigate your computer without the need for moving your entire hand to a

dedicated area on a computer, thanks to 3D technology and space recognition: Specifications for the 3D Mouse: • Size of a wireless earpiece. • Light, weighing next to nothing. • Internal battery can be charged via USB. • Battery life is estimated to be eight hours depending on usage. • Two different replaceable clip sizes. This isn’t a completely perfect situation though, as you’ll have to re-learn how to use a mouse. The other thing is that if you’re in a coffee shop or somewhere in public, people are going to look at you like you have some issues. The thing is called the Mycestro for a reason; it looks like you’re conducting your own private orchestra. In other words, you’re going to look weird. If you’re okay with that, then the benefits outweigh the public shame and

From page 1

3D potential locally and globally Airbus is investing in a high-speed prototype machine that will produce complex titanium components at a speed 10 times higher than standard manufacturing. When you consider the ramifications of that development, not a long term aspiration but something planned for mid-2013, you understand that the technology has the potential to revolutionise manufacturing by creating sophisticated parts without the need for labour intensive factories. Hence the ‘second industrial revolution’ predictions. CPIT is still exploring the technology and viable commercial and research model structures,

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but the institute has already made 3D printing available to the local industry. From this starting point there should be interesting developments in the near future.

looks you might receive. The device works from 30 feet away from your computer, thanks to Bluetooth, so you could use this for presentations at work. The touch technology it has reminds me of Google’s Project Glass, which allows

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you to tap a panel on the side of the wearable device to make things happen, like a mouse or trackpad. The other plus is that it’ll work with any iPad or iPhone, with Android support coming by the end of the year. This could be a nice way to have a lean-back experience with a tablet, or do the driving while someone else holds it.

It’s all on display

ngineering & manufacturing machinery and technology suppliers are showcasing the latest innovative solutions at SouthMACH 2013, the industry’s premier trade show. With over 100 exhibits and a live demo and seminar area, anyone involved in manufacturing will benefit from experiencing the vast array of technologies available at SouthMACH 2013. Register online today for complimentary

admission to SouthMACH exhibits, seminars and live demonstrations. SouthMACH 2013 is two days of comprehensive problem solving and networking to provide attendees with solutions to the complex challenges faced by industry today. SouthMACH is the only manufacturing and engineering technology trade show for 2013 in NZ and is free for visitors & buyers to attend (trade only).


NZ Manufacturer April 2013

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NZ Manufacturer April 2013

DEVELOPMENTS

The single and most dangerous word to be spoken in business is no. The second most dangerous word is yes. It is possible to avoid saying either. – Lois Wyse

Perfecting the small stuff reaps huge rewards

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he late Sir Paul Callaghan once said that the brilliance of New Zealanders was in the ‘niches’ and the global success enjoyed by winners of this year’s World Class New Zealand Awards is a testimony to those wise words. The category winners for the 2013 Awards, a New Zealand Trade and Enterprise initiative delivered by Kea New Zealand, were announced recently. Internationally successful pioneers in the fields of animal health, sustainable fuels and the manufacture of microchips have wowed the judges of the prestigious awards this year, making their mark in the world in precisely the way last year’s World Class New Zealand Supreme Award winner Sir Paul envisaged. First presented in 2003, the annual World Class New Zealand Awards honour internationally successful Kiwis, and one ‘Friend of New Zealand’, who have greatly contributed to the country’s reputation and connectedness on the world stage, Bill Buckley takes out the Manufacturing, Design and Innovation category, having achieved phenomenal international acclaim for Buckley Systems, a thriving business that manufactures components for the machines that make 90 per cent of the world’s silicon chips. Dr Sean Simpson, winner of the Science, Technology and Academia award, co-founded Lanzatech, which is at the threshold of solving some of the biggest problems facing the sustainable fuels industry today. Dr Doug Cleverly, winner of the Life Sciences category, is the Managing Director and CoFounder of Argenta, a company that exports cutting- edge animal health solutions to 36 countries across the globe. New Zealand managers have also been acknowledged this year for achieving at the highest level of global business. Judith Hanratty, a former company secretary for BP, and Geraldine McBride, former president of SAP North America, have won the Investment and Business and Information and Communications categories respectively. Rounding out the category winners are two household names. Annabel Langbein, cook, food writer and publisher, has won the Creative category for building a global foodie business, and Rob Fyfe, former CEO of Air New Zealand, takes out the prize for New Thinking. The World Class New Zealand Supreme Award and the Friend www.nzmanufacturer.co.nz

of New Zealand Award will be revealed at a gala dinner at the Langham Hotel in Auckland on Thursday 23 May. The Supreme Award is selected from outside the seven category winners, while the Friend of New Zealand is typically a non-Kiwi who supports New Zealand businesses internationally and works to build global connections. The winners will be presented with the World Class New Zealand Tall Poppy statuette designed by Sir Richard Taylor, co-founder of Weta Workshop and 2009 winner of the World Class New Zealand Supreme Award. The 2013 Awards were judged by a panel of six, comprising John Stace (Chair of judges), Jon Mayson, Professor Sir Peter Gluckman, Dame Judith Mayhew Jonas, Bridget Liddell and Sir Tipene O’Regan. Chair John Stace said the World Class New Zealand Awards offer an opportunity for all Kiwis to celebrate the achievements of some of our true

Bill Buckley, winner of the Manufacturing, Design and Innovation Category

high flyers. “New Zealanders are doing great things in a global context and these Awards recognise and appreciate those amongst our most talented and successful Kiwis who have not only achieved international success in their own right, but are also

supporting and promoting New Zealand and raising this country’s reputation internationally.” Mr Stace says this year’s Awards reflect the significant contribution of World Class New Zealand women with a record three category winners.

for some time as evidenced by the research which revealed that 45.3% of South Island firms employed extra staff in 2012 compared with 29.3% for the north. These employment figures were further reinforced by the fact 25.3% of North Island firms decreased their staff in 2012 comparedwith 16.8% for the south.” Over the last month or so the gap has narrowed with North Island sentiment being lifted by the bubbling Auckland housing market. “South Island levels are tapering mainly because the high end growth that businesses were looking for is now occurring so the expectation levels that drive a business owner’s optimism are more muted. “It’s not that business levels are dropping, quite the contrary, but once a goal has been achieved enthusiasm and optimism levels tend to level off,” he said. Carey said that the Christchurch rebuild was the strongest factor in this optimism and that the spinoffs from the work being generated out of the city were spreading throughout the South Island. “The wine industry is making a recovery led by Marlborough sauvignon blanc, as is the Central Otago property market shown by the increasing number of sales and while there is a drought, the impact is probably being felt more in the North Island than the South Island.” The one cloud over the South Island economy is the acute concern

about a shortage of skilled workers. “In the South Island close to one in five businesses (18.9%) identify a lack of skilled workers as a significant impediment for the future compared with one in 20 (5.1%) for the North Island. “And this shortage is not confined to the construction market, but across the board. The professional services sector is starting to struggle, as is the banking sector, while the transport sector needs more drivers. “Many employers are mindful of this and trying to attract more staff by offering higher wages with 80% looking to increase salaries in line with inflation and above compared with 72.7% for the North Island. “The South Island is almost getting to the stage where the pull factor is greater than the push factor. There are plenty of skilled jobs available, many right at the sharp end of new technology, especially in the construction and related areas, and lifestyle is an attraction. “It is already starting to happen. For example, consulting engineering firm Aurecon has increased its workforce inChristchurch from 60 to 160 since the 2011 earthquakes, with the number of overseas-born staff increasing from 10 to 60 representing 27 countries. “There is no doubt that the supply and demand curve is going to put upward pressure on wages over the next 12 months,” he said.

South Island businesses more optimistic than north

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hen it comes to optimism about the economy, South Islanders are much more bullish than North Islanders with twice the number of Mainlanders being “very” optimistic compare with their northern neighbours. The Grant Thornton International Business Report (IBR) shows that 16.8% of South Islanders are very optimistic about the economy in the next 12 months compared with 8.10% of the North Island. Simon Carey, partner, Grant Thornton New Zealand Ltd, said that the gap narrows when talking about optimism overall with 65.2% of South Islanders being optimistic compared with 61.6% of North Islanders. “These optimism figures are supported throughout the survey with South Island firms expecting to generate more revenue than North Island companies (68.4% to 66.7%), generate better selling prices (46.3% to 38.4%), employ more staff (44.2% to 34.3%), invest in plant and machinery (62.1% to 54.5%) and pay higher wages with 80% looking to increase salaries in line with inflation and above compared with 72.7% for the North Island. At the generous end, 22.1% of South Island firms will increase salaries at levels above inflation compared with 19.2% for the North Island. “Optimism in the South Island has been trending ahead of the north


NZ Manufacturer April 2013

11

DEVELOPMENTS One small step for man....

I do not believe a man can ever leave his business. He ought to think of it by day and dream of it by night. – Henry Ford

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he barcode turns 40 this year – a milestone that will, quite rightly, be celebrated around the world. It was in April 1973 that a group of grocery retail and supply firms in the United States agreed to a system of common identifiers and barcodes for products they bought and sold. A common language for business was born! And it was named the Universal Product Code (UPC). The barcode was, and remains today, simply a standardised means by which UPC identifiers – now GS1 identifiers – could be made machine readable.  Barcodes enable “automatic data capture” by infrared scanning of bars and spaces or a matrix of dots printed or engraved on a flat surface.  Today, the world is seeing widespread uptake of radio frequency identification (RFID) as another technology for data capture based on the same system of identifiers. The unique identification number for that loaf of bread, shirt or car part you just purchased can be encoded in printed bars and spaces, or as a digital signal on an RFID chip. Actually both technologies were around in 1973 but bar codes were the obvious choice for use in grocery especially for retail point-of-sale scanning. The first live application happened in June 1974 when a small pack of barcoded Wrigley’s Juicy Fruit chewing gum was scanned and sold to a customer in a supermarket in Troy, Ohio. That event has since been immortalized in the Smithsonian Institution,

– Gary Hartley

General Manager – Sector Development for GS1 New Zealand Washington DC: The gum and its sales receipt are kept on public display in a glass case. The rest, as they say, is history. The Europeans adopted identifiers compatible with the UPC, and during the 1980s the common numbering system and barcoding went universal. New Zealand was one of the first adopters outside Europe and North America, thanks to the farsightedness of an industry group who formed in 1979 and quickly decided this country should grab the efficiencies that come from using common identifiers and barcodes. Who today can imagine supermarket shopping without their trolley-load of items being rapidly scanned and totaled at the checkout? Can anyone actually remember what used to happen before the early 1980s. Without doubt, the mass adoption of common identifiers – each one

is globally unique thanks to the inclusion of a unique two-digit identifier for each country – and of barcoding was one of the biggest ideas of the 20th Century. It radically transformed the way people can buy and sell just about anything at both retail and wholesale levels. That we take barcoding so much for granted today is a measure of how omnipresent – and how darned useful – the system is in our lives. Its origins really can be traced back to that meeting of US grocers 40 years ago. Those present were so sure that this was an idea whose time had come that they took just 5 minutes to accept a proposal for the UPC and its barcode formula. Today’s global GS1 network is the descendent of the UPC (and its equivalent European Association for Numbering or EAN) – a network of GS1 member organisations in 108 countries of which New Zealand is one. (For the record, GS1 New

Zealand is a not-for-profit owned by its 5000-plus members in this country who rely on us to manage, and help develop, the global system of identifiers and data capture standards for the benefit of all.) So next time you hear “beep” at the supermarket, imagine life without the barcode – the beeps on your grocery shop will be among the 5-6 billion beeps heard that day around the world. Needless-to-say, they all add up to huge savings in time and money for you and billions of other people over the course of each year. You might like to also imagine the future savings and convenience that can come when unique identifiers are combined with RFID technology, as well as barcodes, to ease the passage of goods along supply chains that feed into your supermarket, clothing store or auto parts outlet. Meantime, happy 40th to the humble barcode!

www.nzeco.govt.nz www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

MANUFACTURING TECHNOLOGY

The distance between insanity and genius is measured only by success. – Bruce Feirstein

Nanotechnology: Colour printing new highs

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ommercial laser printers typically produce pin-sharp images with spots of ink about 20 micrometers apart, resulting in a resolution of 1,200 dots per inch (dpi). By shrinking the separation to just 250 nanometres — roughly 100 times smaller — a research team at A*STAR can now print images at an incredible 100,000 dpi, the highest possible resolution for a colour image1. These images could be used as minuscule anti-counterfeit tags or to encode high-density data. To print the image, the team coated a silicon wafer with insulating hydrogen silsesquioxane and then removed part of that layer to leave behind a series of upright posts of about 95 nanometres high. They

capped these nanoposts with layers of chromium, silver and gold (1, 15 and 5 nanometres thick, respectively), and also coated the wafer with metal to act as a backreflector. Each colour pixel in the image contained four posts at most, arranged in a square. The researchers were able to produce a rainbow of colours simply by varying the spacing and diameter of the posts to between 50 nanometres and 140 nanometres. When light hits the thin metal layer that caps the posts, it sends ripples — known as plasmons — running through the electrons in the metal. The size of the post determines which wavelengths of light are absorbed, and which are reflected (see image).

4D printing touted as way of the future

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kylar Tibbits, an architect, designer and computer scientist, in a recent TED interview unveiled the concept of 4D printing which allows objects to self-assemble and adapt. While a 3D printer builds things up layer by layer, Tibbits has developed a technology where chunks of material start separated and then intelligently arrange themselves into a pre-programmed object, and furthermore, create objects that can change after they are first printed meaning they are self adaptive. Tibbits’ latest technology uses water to activate and power strands of material that fold themselves into desired shapes. It will be developed in part by the new MIT Self Assembly Lab – to be headed by Tibbits and announced during his talk – in association with Minnesota based company Stratasys and a Israel-based maker of 3D printers. It can also be used on multiple types of materials rather than simply www.nzmanufacturer.co.nz

one type of plastic, as with other 3D printers. Practical uses could include furniture, construction and eventually aerospace development. Tibbits believes that the technology could be most useful for astronauts in space. Tibbits looks at 4D printing as the future of manufacturing, and not just manufacturing small objects, but large construction projects, such as buildings. He says that current methods of manufacturing have become ever more complex, requiring more and more parts to go into one completed piece, at the cost of more time spent on construction. CAD systems developer Autodesk, 3D printing company Stratasys, and biological printing specialists Organovo are already involved in collaborative exploratory projects with MIT. The next step in the development is to print sheets, working up whole structures and also looking at alternative energy sources to water.

The plasmons in the metal caps also cause electrons in the backreflector to oscillate. “This coupling channels energy from the disks into the backreflector plane, thus creating strong absorption that results in certain colours being subtracted from the visible spectrum,” says Joel Yang, who led the team of researchers at the A*STAR Institute of Materials Research and Engineering and the A*STAR Institute of High Performance Computing. Printing images in this way makes them potentially more durable than those created with conventional dyes. In addition, colour images

cannot be any more detailed: two adjacent dots blur into one if they are closer than half the wavelength of the light reflecting from them. Since the wavelength of visible light ranges about 380–780 nanometres, the nanoposts are as close as is physically possible to produce a reasonable range of colours. Although the process takes several hours, Yang suggests that a template for the nanoposts could rapidly stamp many copies of the image. “We are also exploring novel methods to control the polarisation of light with these nanostructures and approaches to improve the colour purity of the pixels,” he adds.

See what’s new in Advanced Manufacturing

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ustech 2013, Australia’s Premier Advanced Manufacturing and Machine Tool Exhibition is now open for registration. It opens at Melbourne Convention and Exhibition Centre - 7th to 10th May, 2013.

See new technology demonstrated by world-leading companies.

Find ways to cut costs and generate work.

Contact: www.austechexpo.com.au

Generate business contacts Get ideas on how to optimise your business processes nextSTEP


NZ Manufacturer April 2013

Purpose is a soft virtue — but it’s what gives you steel in your spine. – Rich Karlgaard

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MANUFACTURING TECHNOLOGY

Solidworks Professional 2013 meets future needs

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ere, an Auckland company, Ignition Networks, highlights the benefits of using a Solidworks product.

Which Solidtech software are you using?

Solidworks Professional 2013 x64

Why have you chosen this particular software?

We have chosen Solidworks because it is a standout leader in 3D CAD and meets all our current and, at this stage, future requirements.

How has the software made your company work better?

We are able to get our designs drawn up with more speed and accuracy, and with more confidence that the end product is going to be right. The ability to do reasonably realistic renderings with a few mouse clicks has meant we can give our customers a more realistic picture of what the product could look like, and make any changes to it, before we manufacture anything.

Is your company more efficient from using it?

Yes. We previously had spent many days re-drawing work

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that our last CADsoftware was corrupting. Very frustrating having spent many hours completing a complex assembly only to have the software “forget” where everything was  placed and making things up the next time the assembly was opened for any re-work, this happened on numerous occasions and was a driving factor in upgrading. The use of decals for visualising where plugs/lights/displays etc are on a part have decreased the time required to get the level of detail we need when modelling a part.  Making cable routing and part positioning more accurate in the design stage. Smart components have dramatically decreased our panel design time.  Previously the work was very tedious and required considerable effort in checking and re-checking mounting holes and panel cuts were all correct.  Now we can setup one part, make it a smart component, and then let the software do the work. The time needed to go from 3D part to manufacturing drawings has been greatly reduced with Solidworks.

What applications is it used for?

Sheet metal design for portable communications and networking solutions

Has it allowed your company to open up new markets?       Not yet.  

Is it Lean related?

Yes. Not intentionally, but it certainly has made our workflow considerably more efficient.

Has business increased?

All of our business comes through word of mouth, but we have been able to offer new options like detailed rendering, and in the future we will look at creating detailed manuals with Solidworks

Can you foresee more work coming in to your company? Yes

Do you export?

Not at this stage however we are working on export plans

Do you contract manufacturer? No

Next generation of compact drives launched

he Allen-Bradley PowerFlex 525 AC drive is to help machine builders and end users simplify equipment design and operation, and speed installation and configuration. The PowerFlex 525 AC drive features a modular design in power ranges from 0.5 to 30 horsepower or 0.4 to 22 kilowatt at 100 to 600 volt input. Its embedded EtherNet/IP, safety, USB programming, energy savings and a variety of motor control options are ideally suited for machine-level and stand-alone applications or simple system integration. Machine builders and end users want drives that deliver more flexible control, offer better communication, and help them simplify startup. This new drive portfolio is designed to give customers the performance they need, while helping to lower their Total Cost to Design, Develop and Deliver machines. Suitable for a wide range of applications, including conveyors, material handling, compressors, fans and pumps, the PowerFlex 525 AC drive provides a variety of motor control options to accommodate open- and closed-loop applications. To help simplify and streamline setup, users can configure the

PowerFlex 525 AC drive through its human interface module (HIM), Rockwell Automation Connected Components Workbench software or Rockwell Software Studio 5000 Logix Designer. The PowerFlex 525 AC drive offers time-saving application sets, which are groups of pre-defined parameters for common drive applications that users can apply “as is” or customise for a machine. Using a standard USB connection, machine builders can easily download the completed configurations and share with multiple drives, which greatly speeds up commissioning time. Removing the control module from the power module further reduces startup time because configuration and installation can be done simultaneously. MainsFree programming through a USB connection removes the need for main power during drive configuration, as well as the need for special adapters to communicate between the drive and the programming tools. Function-rich AC drives at low power ranges offer greater flexibility and ease of use, which reduce setup and installation costs significantly, according to Himanshu Shah, senior analyst, ARC Advisory

Group. “OEMs and end users continue to seek automation equipment that offers lower cost of ownership and a faster payback period in their capital investments. The PowerFlex 525 AC drives directly address these business issues with more motor control options, flexible programming tools, as well as advanced communication, safety and energy-saving options.” Embedded EtherNet/IP connectivity optimises integration with programmable controllers to deliver more application flexibility. Optional dual-port EtherNet/IP connectivity supports device level ring (DLR) topology, providing a robust network infrastructure. An SIL2/PLd-certified, embedded safe torque-off feature helps prevent drive restarts after a safety circuit is tripped, ultimately helping to protect personnel and equipment, and minimize production losses. The drive’s economizer mode helps optimize motor energy consumption by monitoring an application’s current demand and automatically refining operating parameters accordingly. The PowerFlex 525 AC drive requires 50 mm (2 inches) of clearance on the top and bottom when installing into a cabinet and

can be mounted zero-stacked both horizontally and vertically. This smaller clearance can help customers reduce the panel space required for their application. In addition to the flexible installation, the PowerFlex 525 AC drive is rated up to 50 C (122 F). With an optional fan kit, the drive can withstand temperatures up to 70 C (158 F) with current derating. www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

AUSTECH 2013

Procrastination is, hands down, our favorite form of self-sabotage. – Alyce P. Cornyn-Selby

Machining centre and CNC lathe offer precision and productivity

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uality Machine Tools will have two machines on display on their Stand 592 over the four days of Austech 2013, but they tell only part of the story for a machine tool supplier that has been serving the Australian manufacturing industry for nearly 20 years. Quality Machine Tools offers solutions to any machining needs from practically any sector and is looking forward to discuss customers’ requirements during the show. Moreover, Quality Machine Tools’ expert engineers will be demonstrating the VTEC doublecolumn machining centre model SF2112, as well as a 4-axis CNC turnmill centre from ACE Micromatic. VTEC’s SF series is a double column machining centre which is efficient and productive, reaching high metal removal rates. The machine is equipped with a highspeed spindle and high-repeatability linear guideways and provides excellent machining performance and surface smoothness through its 6000-rpm built-in spindle and 24m/

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min rapid traverse. A 24,000-rpm spindle is also available. The machine features Xand Y-travels of up to 12,000mm and 5000mm respectively, a 32-tool magazine (40 tools as an option), and a stable light-weight table with a size of 2000mm x 1100mm and 4kg maximum load. For 5-axis machining applications, all VTEC machines can be equipped with a range of automatic heads for various 5-sided machining applications. Moreover, the VTEC FA series is a 5-axis machining centre suitable for all 5-axis simultaneous machining applications. All VTEC machines can be supplied with either Fanuc, Heidenhain or Siemens controllers. Quality Machine Tools will also exhibit the Vantage McY 800 4-axis turn-mill centre with large Y-axis travel (130mm) from ACE Micromatic. The C and Y-axis are equipped with a 12-station Sauter/ Duplomatic tool turret, and the Fanuc 0i TD CNC ensures easy operation. Moreover, the machine features a turning diameter of

400mm with a turning length of 800mm. A parts catcher and tool measuring eye are also available. The Melbourne-based machine tool supplier has been representing the ACE Micromatic Group for nearly 17 years now, offering a wide range of slant bed CNC lathes with 2-axis to multi-axis configurations,

CNC vertical machining centres and CNC cylindrical grinders. Quality Machine Tools’ products and service satisfy the requirements of precision engineers, tool- and die makers, mining, railway, defence and aerospace industries, heavy engineering as well as universities and TAFEs.

High performance solutions

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eading packaging specialist, tna, will be presenting its flagship high performance bagging systems at AUSPACK 2013. Visitors to the stand will be able to learn more about the new robag 3ci high speed bagger and tna’s extensive automation and controls capabilities. Technical experts will be onstand to showcase the robag 3ci high speed vertical form fill and seal packaging machine. This cutting edge system provides up to a 30 per cent improvement in performance in terms of output and reduction in rejects, while achieving unprecedented throughput rates of up to 150bpm. With innovative new features including the new tna intelli-weigh omega multi-head scale, the tna hyper-detect metal detector and tna flo-thru former, the new tna robag 3ci provides manufacturers with a complete bagging solution. tna will also be demonstrating its controls system expertise by revealing how manufacturers can integrate tna’s equipment into a production line or improve the set up of current control systems. Through the collection of detailed and reliable data from as many parts of the manufacturing process as possible, tna’s specialist solutions can

target a variety of inefficiencies, such as poor product quality, material wastage or unsustainable processes. tna can support manufacturers to overcome their packaging challenges to maximise productivity and maintain food safety and quality. tna’s extensive range of packaging line solutions are installed in more than 120 countries and are provided along with 24/7 support project management services to customers globally. For information and advice on how tna can improve packaging processes, visit stand 136 at AUSPACK 2013.


NZ Manufacturer April 2013

The challenge is not just to build a company that can endure; but to build one that is worthy of enduring. – Jim Collins

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15

ACROSS THE DITCH

Plasma cutting through the work

here is no doubt in anyone’s mind that the mining industry is operating at full capacity requiring a demanding workload from the miners and associated businesses. With lead times being crucial, Perth-based Ox Engineering felt it was time to look for a solution to alleviate the pressure, minimise lead times and bring outsourced plasma cutting work in-house.

Keeping up with demand

Ox Engineering is a specialist company based in Perth, WA, providing products, parts, repairs and service for the drilling and exploration sector. By nature a mobile activity, drill rigs require specialised products and transport equipment. The company supplies customdesigned products to suit the different types of drill rigs used in exploration – some examples are: dual rotary water well rigs, large oil and gas rigs, diamond drill rigs and reverse circulation. All of these drill rigs require different products for sampling, maintenance and safety; handrails, platforms for personnel and auto mobilising specialised equipment to take manual handling down to a minimum. With demand for exploration high to find the next mineral source, drill rigs are put through their paces, requiring many spare parts, rebuilds or retrofits to keep them commissioned. In order to manufacture those parts, designs are generated using 3D CAD software and then outsourced to specialist companies for cutting. Demand in the industry is such that lead times were rapidly blowing out to three - four weeks, making business untenable for the Ox Engineering team. Given that

Heath Oxley, owner of Ox Engineering, is excited about business prospects with the new HACO CNC plasma cutting machine.

the outlook for mining is relatively robust, Heath Oxley, manager of Ox Engineering, felt it was prudent to investigate the options to purchase a CNC plasma cutting machine to bring the plate cutting in-house. With the engineering and design mind set, Oxley had a fairly good idea of what he was looking for. “I wanted a machine that could use our drawings with minimal fuss; it had to provide tight tolerances and accuracy, the cutting edge needed to be precise and the build quality of the machine needed to be high. And of course, meet our budget,” reflects Oxley. “I narrowed my search down to three possibilities, one built in Australia with many imported, cheaper components; one that was completely Australian owned and made, and the HACO model. All three had the highdefinition (Hypertherm’s patented HyDefinition technology) plasma cutter we wanted, the same power source and comparable software capabilities.” In the end, the final decision

was confirmed with the reputation and knowledge of the HACO Group. With other products such as press brakes, turret punchers and rollers, Oxley felt that the company was experienced in the type of machinery he was after and would also offer excellent support. As a result, Oxley chose a Kompakt 4020 CNC plasma cutting machine from HACO Australia. The Kompakt 4020 boasts a cutting table of 4000mm x 2000mm and a positioning accuracy of ± 0.1mm and Hypertherm’s patented HyDefinition plasma cutting system. The machine is more than capable of cutting materials of up to 32mm of mild steel and happily copes with stainless and tempered high-tensile steel. To ensure optimum cutting accuracy and speed, the gantry of the Kompakt rests on over-sized linear guides and is driven on both sides by brushless AC Servo motors and rack-and-pinion systems. Two over-sized linear guides are mounted on the gantry itself for accurate Y-movement of the

cutting head rest. The X-axis is also controlled by a brushless AC Servo motor with rack-and-pinion system. The touch screen control panel is intuitive and allowed the team at Ox Engineering straightforward control of the cutter with minimal training. It also provides the user with information on consumable lifecycles to minimise wastage and downtime. “Previously, our lead times were too long; by the time the drawing was finalised and then outsourced for cutting we could potentially have lost 3-4 weeks. Now, with our own plasma cutter, once the drawing is complete, it can be cut in an hour. It has cut our turnaround time to a tenth of what it was,” says Oxley. The machine has only been with Ox Engineering for a short time, but has already made an appreciable difference to how the business operates. The company continues to grow both locally and into overseas mining markets, thanks in part to the introduction of a CNC plasma cutting machine to the company’s arsenal.

Demand in the industry is such that lead times were rapidly blowing out to three - four weeks. Directory

Bringing plasma cutting in-house by investing in a Kompakt 4020 plasma cutting machine from HACO Australia has solved the lead time problem for Ox Engineering. www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

WORKSHOP TOOLS

You can have everything in life you want, if you will just help other people get what they want. – Zig Ziglar

Unique resistance welding solutions

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ew horizon resistance welding equipment allows users to choose from among 24 modular components of weld heads and weld pincers to configure the perfect solution for their application. With hundreds of possible configurations, users can run their applications while reducing maintenance, and doubling process flexibility when ordering and using the products. There is also new 50 Watt ML7350C Yb: fibre laser marker,

designed for high speed laser marking, laser engraving, laser cutting, and laser ablation. The ML-7350C makes high contrast marks on both plastics and metals. 50W of power means the marker can provide distinct, fast, reliable and versatile markings of letters, numbers and graphics. The unit features low maintenance and investment requirements, minimising its overall ownership costs. The MG3 Hot Bar offers precise measurement of all

bonding processes, allowing for continuous control throughout during the entire process cycle in real time. The new process monitoring device is an integral part of a unique system capable of measuring various parameters such as displacement, temperature and force in real time. Compact and flexible it features high quality Hot Bar connections and high throughput, all within an easily adjustable frame construction.

create. We’re growing year on year, even in a recession.” Nexus Foams is an engineering development company that designs, manufactures and distributes technical products using soft and flexible materials for a variety of industries including construction, manufacturing and medical. The company employs 35 people across its three locations – its Ormiston Site in East Tamaki, for high-volume manufacturing, the Highbrook site which deals with design development and niche manufacturing for the manufacturing and medical sectors – and that was where the LEAN process started. The Christchurch site acts as technical sales support and a distribution hub for the South Island. “We began by really learning about the business. We wanted the right team in place before embarking on a strategic plan and that meant

working with people who could helps us implement it. It comes down to having a good team of people – if anyone is working against you, they’ve got change or they have to go.” Once the company had the right people in the right roles, Simmonds says things just began to click into place. Surprisingly, while it’s an amazing feeling to see it working, what happens next was a bit uncomfortable – the phones stopped ringing. “We got quite worried. Our orders and sales were going up but the phones weren’t ringing any more. And we realised it was because no one had to chase anything. Instead of spending their time firefighting and going home stressed and tired, we could give our staff other challenges to focus on. We’re putting that energy into campaigns and product design.” All of this complemented the

Moflash signalling products

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oflash HAE signalling products includes electronic sounders, strobes and manual call points all of which will be certified to IECEx and suitable for use in hazardous area Zones 1, 2, 21 and 22. Manufactured using Glass fibre reinforced polyester (GRP), these dust and weatherproof signalling products are ideal for hazardous area applications that include Oil refineries, Off-shore Gas platforms, Chemical/ Petrochemical and Grain Processing.

Anything but mean

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utting in place LEAN principles has made a huge difference for Highbrook-based Nexus Foams. Describing a business as “lean and mean” is usually meant to be a compliment. But when Nexus Foams’ general manager Grant Simmonds was brought on board to help implement LEAN principles, it was exactly what he was trying to avoid. “The reason we were interested in LEAN and Kaizen principles was to grow the company rather than to just cut costs,” he explains. “Cost reduction is important, but we didn’t want to be lean and mean, we wanted to create time and use it to develop products and grow the business.” The strategy seems to be working – at the end of last year the company won the New Zealand Steel Excellence in Innovation and Improvement award at the 2012 Westpac Auckland South Business awards. “You don’t realise that how much innovation and creativity it [LEAN] unlocks,” Simmonds says. “It’s amazing how much time it can www.nzmanufacturer.co.nz

company’s existing approach to their customers – dealing with them as long-term partners rather than on just a transactional level. Simmonds says it’s one of the keys to Nexus Foams’ success. Simmonds sees the award as recognition of the hard work staff members have put in to implement these changes and they all got to celebrate it at a company-wide celebration. However, he also says it probably wouldn’t have happened without financial controller – now chief financial officer – Tracey Swinehart who undertook to coordinate the work required to fulfill the entry criteria. “And that’s an important part of LEAN as well,” Simmonds adds. “Getting a finance person involved. They need to live and breathe it otherwise you’re wasting your time.” nextSTEP Visit: www.nexusfoams.com


WORKSHOP TOOLS

NZ Manufacturer April 2013

17

Flexible strip lighting

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he all-new flexible 12-volt L.E.D Tape and Strip Lighting is expected to ‘light up’ interest by creating new design opportunities for caravans, campers and also marine applications. Commonly used in the commercial lighting industry to illuminate cupboards, alcoves and wall recesses, where strip lights can be hidden, the new lighting provides a soft background or alternatively brilliant down lighting suitable for a host of new applications in the recreational leisure vehicle and craft market. Both soft ambient and high output cool white lighting options are available. Softer light is best suited to wall-wash lighting, where a warm ambient light is required. Where maximum or full power cool white light is required, high output models are available. Pre-cut and pre-wired lengths of 300mm, 600mm and 1.2m of

L.E.D tape are packed in attractive individual blisters with 5-metre bulk packs also available for manufacturers. The 5-metre reels can be cut to desired lengths with terminals included for soldering at three L.E.D intervals. For mounting, the tape is backed with strong self-adhesive 3M™ backing tape. Electrical connections can be covered professionally with heat shrink to provide a professional finish. Durable waterproof pre-wired flexible high output L.E.D strip lighting is also available in 5-metre lengths in cool white, red or blue, featuring a protective sleeve and fully sealed connection. Waterproof and rated to IP68, these are ideal for permanent mounting for illuminating large areas around a caravan, camper trailer or boat deck. All are suitable for interior or exterior applications.

System simplifies troubleshooting

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he CNX Wireless System is the first set of test tools that wirelessly connect multiple measurement modules and send simultaneous readings to a master device up to 20 metres away. The rugged, customisable tool set lets users choose various measurement modules based on their specific troubleshooting scenario. At the core of the CNX Wireless System is a CAT III 1000 V / CAT IV 600 V multimeter with a screen that displays its readings along with live readings from up to three other measurement modules. For more complex troubleshooting, users can view live measurements from up to 10 modules simultaneously on a computer equipped with the CNX PC Adapter. The modules, which include AC Voltage, AC Current Clamp, iFlex AC Current Clamp and K-Type Temperature units, can take live measurements or log up to 65,000 sets of data. Logged data can be saved to a computer in .csv format. The Fluke CNX system lets users place modules in hazardous or awkward places and then watch the readings from a safe distance.

For example, technicians can deenergise a panel, connect voltage or current modules to all three phases and close and re-energise the panel. The measurements can then be read outside the arc flash zone. By leveraging the most common electrical test tool, the multimeter, the Fluke CNX system lets technicians extend their existing capabilities and skills, helping them meet market demand for more complex threephase work without retraining on more complex test tools. www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

WORKSHOP TOOLS

A negotiator should observe everything. You must be part Sherlock Holmes, part Sigmund Freud. – Victor Kiam

PowerMILL Robot Interface for machining with robots

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he PowerMILL Robot Interface is for the programming of robots for multi-axis machining operations. The earlier VB application that was developed for robot machining has been completely rewritten and fully embedded inside the company’s internationallyrenowned PowerMILL CAM system as a plug-in. This approach makes it as easy to program a robot for machining as it is to program a five-axis machine tool. With the Robot Interface being a fully-associated application inside PowerMILL, users have access to all the multi-axis machining strategies within PowerMILL and can use all the system’s project management options to manage, store and retrieve data. To see how easy it is to use the PowerMILL Robot Interface, please go to www.delcam.tv/cncpolystyrene. The core functionality of the PowerMILL Robot Interface consists of three main steps: programming, simulation (including analysis) and creation of the robot programs. Robots can be programmed for tool-to-part applications, making them ideal for machining large parts, such as composite panels that need to be trimmed, or for part-totool applications, such as grinding or linishing. The working area can be extended with linear tracks and rotary tables for even greater flexibility over the size and types of parts that can be manufactured. The PowerMILL Robot Interface can then be used to simulate the complete machining operation and to control the robot’s movements through different variables, such as axis limits, axis priorities and workplane constraints. Various aspects within the configuration of the robot cell, such as axis limits, tool constraints and home position, can be defined, and the simulation of the robot completed within those constraints.

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The robot’s working envelope can be displayed to optimise the position of the part or initial stock, and so give maximum access to the material. The maximum range of movements required of each axis can be viewed to analyse the robot’s behaviour and movements throughout the operation. Any issues that may prevent the toolpaths from being completed successfully are highlighted, with notifications of the robot potentially reaching axis limits, singularities and collisions. Graphs display the axis limits, wrist singularity and axis reversals, to give a better understanding of how the robot will move. Similarly, the acceleration and deceleration of the robot’s axes are shown on time-based graphs. Once the results of the simulation have been reviewed, and modified if necessary, the program can be output in the appropriate robot native language, for example for KUKA, ABB, Fanuc, Yaskawa Motoman or Stäubli equipment, eliminating any need for third-party translation software. Acceleration, smoothing values and other robot-

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The new PowerMILL Robot Interface makes programming a robot as easy as programming a five-axis machine tool.

specific parameters can be defined as part of the output. Full support for external axes, such as rotary tables and linear tracks, can be included, as well as dedicated tools for spindle calibration. Overall, the PowerMILL Robot Interface helps users to get the most

out of any robot type in the shortest possible time. The simplified workflow makes it easy to program, simulate, review and refine toolpaths, whilst also enabling the robots to achieve levels of accuracy similar to many CNC milling machines when cutting softer materials.

High powered work lamp

quantum leap forward has been taken with the development of a new version of the round work lamp utilising the latest L.E.D technology. The Senator II makes use of the distinctive style and high power L.E.D technology, along with other advanced features. The lamp challenges the traditional halogen lamp in both performance and price and is a ‘must have’ for applications on council, transport and contractor trucks, as well as mining, forestry and agricultural equipment. Senator II, with powerful 3 Watt L.E.D’s, is available in either a powerful flood or hybrid flood beam

pattern producing a smooth and even 2000 lumen light output. Where more light is required a high powered 5 Watt version is available in hybrid flood beam, delivering an outstanding light output of 3200 lumen, approaching that of H.I.D light. The hybrid optic lens combines the performance of a flood beam with a spot beam, delivering a versatile light pattern ideal for a wide range of applications. The housing is ventilated to effectively cool the fully sealed internal L.E.D module, maximising the performance and life of the L.E.D bulbs. The unique design of the housing allows water to pass through without affecting the internal module, which

is sealed to IP66 standard. Given the extreme conditions in which these lamps operate, the housing of this exciting new lamp is made of impact resistant reinforced nylon fitted with a quality rocker switch covered by a weatherproof boot. The lens is virtually unbreakable polycarbonate and the stainless steel mounting hardware is complemented by a pressurised spring, allowing the lamp to swivel easily without any requirement for tools. Senator II is also available with a magnetic base with rubber suction pads to prevent the magnet scratching the surface of a vehicle of equipment. This model comes fitted with a 2m spiral lead and cigarette lighter / Merit plug.


NZ Manufacturer April 2013

Failure is simply the opportunity to begin again, this time more intelligently. – Henry Ford

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EMERGING TECHNOLOGIES

Driving future business growth

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atest technologies including “smart” fabrics, 3D printing and energy solutions have been highlighted as some of the innovations that could drive business growth over the next 20 years. Scientists and experts have identified more than 50 new and developing technologies. The technologies and trends identified in the new report include “smart” fabrics (one of several “human-centred” design innovations) - featuring technology woven into fabric that could be used to make clothes to monitor potential falls of an elderly wearer or the heart-rate of a patient. The development of new interactive materials incorporating sensors or communications technology is expected to transform the way everyday objects function, and produce novel medical and engineering applications. Additive layer manufacturing or 3D (three-dimensional) printing is another emerging technology that has moved from a research and development environment to commercial applications, ranging from housing units to fabricating biological tissues, and could offer people the chance to manufacture their own products. Energy transition - the move away from reliance on fossil fuel energy sources to a more mixed supply model - is another important field for research. There are major challenges to overcome, such as tackling intermittent supply from renewable energy sources and making such energy generation more affordable. But there are also opportunities such as hybrid energy systems, exploiting advances in battery technology and “smart grids” that could use information about supplier and consumer habits to improve the efficiency and reliability of electricity production. Wide-ranging and exhaustive new UK research is already offering breakthroughs in understanding the electronic properties of the super-material graphene. Research on its electronic properties could bring us closer to taking it from the laboratory to developing it for use in commercial products. First isolated in 2004 graphene is the lightest, strongest and most conductive material known to man, with great commercialisation potential because of its mechanical strength and unmatched electronic properties. Commercially, it has the potential to have applications ranging from

Development of new interactive materials is expected to transform the way everyday objects function.

telecommunications to energy technology and electronics. It is also able to conduct electricity a million times better than copper and is stronger than other existing conductors. Both inkjet and laser printer technology can be used to build the 3D scaffolds that cells can be grown in and also place the cells in these structures simultaneously. Clinical trials are taking place around the world to perfect this technology, and it is moving towards becoming an established form of science. In another example of advanced 3D printing technology, scientists at the University of Warwick, in central England, are developing new materials that could one day allow people to print out custom-designed personal electronics such as games controllers that perfectly fit their hand shape. The researchers have created a simple and inexpensive conductive plastic composite they call “carbomorph” that can be used to produce electronic devices using the latest generation of low-cost 3D printers designed for use by hobbyists and even in the home. Elsewhere, scientists say discoveries in synthetic biology could take us a step closer to a “new Industrial Revolution”. They have developed a method that cuts down the time taken to make new “parts”

for microscopic biological factories from two days to six hours. This will bring closer the time when parts for these biological factories could be mass-produced. These factories have a wealth of applications including better drug delivery treatments for patients, enhancements in the way that minerals are mined from deep underground and advances in the production of bio-fuels. And then there is Catalysis science which is vital for many areas of the economy, from food production to pharmaceuticals. Catalysts accelerate chemical reactions, making them possible on useful timescales and are at the heart of key industrial processes. Almost all manufactured goods at some

point in their manufacture involve the use of a catalyst. Catalysis is critical to chemical, energy, pharmaceutical, food, personal care and materials sectors; development of catalysis is also key to emerging sectors such as industrial biotechnology. Companies based in the UK play a big role globally in all areas and generate wealth of 50bn pounds a year as well as intellectual property for UK plc. One of the themes will be Catalysis for Energy a project that will develop technologies for transforming fossil fuel resources such as remote natural gas, coal bed methane and shale gas; develop new sustainable energy sources; improve energy efficiency and storage, and reduce energy costs.

MAY 2013 ISSUE FEATURES Advertising MAY 2013 ISSUE FEATURES • Manufacturing Technology Booking & Copy • The Future of Manufacturing Deadline – 22nd • Environmental Technology May 2013 • The Marine Industry • Workshop Tools • Preventative Maintenance • Composites • Workshop Tools For further information contact:

Managing Editor: Doug Green P: 06 870 9029 E: words@xtra.co.nz

www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

SUPPLY CHAIN

Nine out of ten businesses fail; so I came up with a foolproof plan — create ten businesses. – Robert Kiyosaki

Crafting logistics provider contracts that cover all the bases

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efore committing to a logistics service provider partnership, logistics managers must ensure they understand all the contract’s parameters. One way to accomplish this is by outlining the terms of the agreement before signing the contract. Key factors to cover in service provider contracts include:

1. Establish

2.

start and end dates. Setting a start date establishes initial expectations, and an end date keeps service organisations on their toes when renewal time arrives.

Ensure payment terms are clear. Businesses need to be paid on time, so it is important that the contract clearly outlines payment expectations. Ensuring that both parties understand the payment terms helps avoid problems in the future.

3. Request

lower price points for faster payment. Nothing is more powerful in negotiations than short payment cycles. If you are able to pay faster than the suggested payment terms, ask for a price concession in exchange for quicker payment.

From page 1

May says that it was a huge advantage to work with Tetra Pak Oceania which has extensive experience in spray drying technology and innovation. “Tetra Pak had the overall contract, but we were also able to offer work to a number of West Coast companies. We also made sure we put time and resources into staff and training, making use of experienced contractors and consultants who have been through nutritional plant commissioning before. It’s been a fantastic effort from everyone involved. We have successfully commissioned the plant; we have product in the warehouse; customers visiting, auditing and ordering; and commercial production has commenced.” Westland Chief Executive Rod Quin says, “To achieve success in the nutritionals market we have to have the sophisticated technology required, which is where the investment in the nutritionals plant comes in. It’s a huge step for us to take, but one that expresses confidence in the future of Westland as a company and dairying as an industry.” Noel Ayre, Managing Director of Tetra Pak Oceania says: “Our team enjoyed working with Westland, to install our superior infant formula www.nzmanufacturer.co.nz

4. Avoid

discussing late-payment penalties. Many service agreements include penalties for late payment. Don’t waste time arguing the specific penalties— if a provider senses you have a payment issue, the entire deal could fall apart. You’ll call less attention to the issue if you simply request extra payment time. 5. Include an out clause for nonperformance. Service providers require contracts because of all

the upfront costs they invest in the relationship—but that doesn’t mean they will always hold up their end of the bargain. Make sure the contract allows you to terminate the agreement if the provider does not meet expected service levels. 6. Protect against acts of God. Whenever possible, include contract terms that protect against acts of God, war, and other disruptive events. Most of your customers understand

Nutritional plant enters production

wet mix plant technology, which allows Westland to produce a quality product.”

Technical information

• The first new part of the

nutritionals plant consists of a new materials handling facility to assist in the receipt of ingredients, staging/depalletising, the tipping of dry ingredients required to make up a specific formulation, and the dispatch of finished product. Dry ingredients can be transported via a dual 25kg bag tipping line, or the bulk bag line, into 15m3 ingredients bins. • Liquid skim milk is then combined with the dry ingredients in the Almix tank.  The Almix provides high-shear mixing under vacuum at around 50ºC to ensure both the macro and micro ingredients are

that service delays will occur if a tornado wipes out a warehouse, but others will make unreasonable requests. Including provisions in the contract is good protection. 7. Make sure all pricing is outlined. Understanding the pricing model is important. Nobody wants any surprises once the relationship goes live. 8. Designate a contact person. The agreement should name a contact person on both sides to receive all formal correspondence. If the agreement requires changes, or issues need to be addressed, both parties must know who to contact. 9. Address extras separately. Make sure any extra consulting, customization, or integration outside the scope of the agreement is addressed in writing. 10. Ask for ongoing process improvement meetings. Some providers promise more account management than they perform. Making quarterly reviews part of the agreement ensures the provider will deliver customer service.

age of the consumer base. For example, Infant formula is for babies aged 0-6 months, follow on formula is for babies aged 6-12 months and Growing Up Milk is for youngsters aged 12 months plus. Within these three categories is an array of specific formulations tailored to meet the needs of the customers.  Formulations containing different ratios of oils, proteins and carbohydrates can vary considerably depending on their end use. • Less than two grams of certain homogenous and fully hydrated.  ingredients is added to a To maximise the mixing and 30,000 litre mix for a particular hydration process the mix is specification. circulated for approximately 1.5 • Zoning:  Complete segregation hours.  of wet and dry areas.  The • The correct ratio of macro Critical High Care Zone (Dryer and micro dry ingredients is 6 & Packing) requires a complete precisely measured into the exchange of overalls, footwear, liquid ingredients and extensive full headwear cover and testing and revalidation of the sanitisation. formulation takes place.  • Once this cycle is complete the • 55 Environmental Pathogen mix (1 x 30m3) is chilled and sampling areas have been heat treated before being placed identified to monitor and ensure in one of three 90m3 silos ready the highest hygiene standards. for evaporation and drying in the • Dedicated forklifts in the existing Dryer 6.  nutritionals warehouse and oil • Powder is directly packed via a handling facility to ensure that dedicated Avapac LI 800 packing the area remains as clean and line into 25 kg bags. hygienic as possible. • Product categories for infant • Extensive air filtration to Hepa nutritionals typically relate to the specifications.


NZ Manufacturer April 2013

21

ADDITIVE MANUFACTURING Injection moulding machines

A satisfied customer is the best business strategy of all. – Michael Leboeuf

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ow more than ever before, Engel offers it’s customers clear advantages, in terms of innovative injection moulding machines, automation, processing technology - and value for money! Engel injection moulding machines are offered in a range of sizes, from 25 tonne to 5,500 tonne clamp force. The machines are modular, and injection and clamp units can be configured to meet the requirements of the customer’s application. Fully hydraulic, hybrid, and fully electric machines are offered, as well as automation and ancilliary machine equipment, all supplied from one source. Engel is well known and respected for innovative design and engineering solutions. Engel’s tiebar-less clamping system has been phenomenally successful. The tie-barless system is the ‘standard’ clamping system on the small to medium size Engel machine range. The tie-bar-less clamping system means complete freedom from traditional tiebars, enabling use of the entire platen area, unhindered access to the mould area, and easy clear access for robot and

automation solutions. Engel’s continuous growth of market share in all clamping force sizes is based on the launch of new products and product lines. The introduction of the new Viper robot series has enabled Engel to secure further market share in automation. Almost every second automated manufacturing cell sold by a European injection moulding machine manufacturer is now supplied by Engel. Engel is also clearly the global leader in injection moulding machine automation. One in four robots sold to the European injection moulding industry is now manufactured by Engel. Since the launch of the Viper robot series - a growing number of Engel robots is also being sold on machines of other manufacturers… With the extension of the Engel duo pico series from 350 to 700 tonnes clamping force, Engel has substantially increased its global market share. In the past five years the market share of large-scale machines over 400 tonnes clamping force in Europe has doubled to approximately 40%. In USA market share also doubled

to approximately 20%. Thanks to the strong presence and continuous expansion of production capacity in Shanghai, the market share in Asia also increased substantially. In the past few years Engel has been fully committed to energy efficiency, thereby significantly boosting the success and competitive edge of its customers. With numerous concepts and solutions for energysaving and efficient production, best energy efficiencies can currently be achieved for virtually all applications. Engel is thus energy saver No. 1 on the market. The Engel ecodrive cuts the energy consumption of a hydraulic injection moulding machine by up to 70%. One in three tie-bar-less Engel Victory and one in four Engel duo machines is delivered with ecodrive. The intelligent servo-hydraulic ecodrive keeps speeds down to the actual requirements, and the drive is only active during movements, with energy consumption dropping to virtually

zero when the machine is idle. Engel is one of the global leaders in the manufacture of plastics processing machines. Today, the Engel Group offers a full range of technology modules for plastics processing : injection moulding machines for thermoplastics and elastomers, and automation, with the assurance that individual components are also competitive and successful in world markets. Engel is a 100% family owned company. With eight production plants in Europe, North America, China, and Korea, as well as subsidiaries and agents in over 85 countries, Engel offers its customers the optimal global support they need to compete and succeed with new technologies and leading-edge production systems. nextSTEP Contact Techspan Group 0800 603 603, or info@techspanonline.com, or visit www.techspanonline.com

www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

ASSOCIATIONS

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Governance Group – Call for Nominations

he New Zealand Qualifications Authority is currently overseeing a mandatory review of all qualifications at levels 1-6 on the New Zealand Qualifications Framework (NZQF). The Targeted Review of Qualifications aims to reduce the duplication and proliferation of qualifications; to ensure that qualifications meet the overall needs of a particular sector and are useful, relevant and fit for purposes; and meet the new requirements for listing qualifications on the NZQF. Qualifications within the Mechanical Engineering sector are due to be reviewed during 2013. Competenz will be leading this review on behalf of NZQA and is now seeking to appoint a Governance Group to provide strategic direction, guidance and project oversight.

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HERA is one of the nomination bodies for the Governance Group and we are seeking an industry person who is a leader and strategic thinker, willing to put his/her view forward and consult with membership. At this stage in the review this is about the big picture governance and not the specific subject matter which will be consulted on later on in the review process. Please contact the HERA Director with your CV if you feel you are able to contribute and would like to be considered in the nomination process.

Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust. – Zig Ziglar

National seminar series on composite

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ollowing the successful seminars in Perth, Adelaide, Melbourne, Brisbane and Sydney, which were delivered by Structural Systems General Manager Dr Stephen Hicks on behalf of the Australian Steel Institute (ASI), HERA is inviting specifiers and engineers to attend the New Zealand seminar series on the design of composite beams, composite slabs and composite columns for multi-storey steelframed buildings. The workshop consists of a set of lectures supplemented by a number of interactive worked examples to ensure that the fundamental ideas are understood and can easily be translated into current design practice. The seminar will focus on the following subjects:

We win robotics

ew Zealand has yet again won the VEX Robotics World Championship. The final was an alliance led by New Zealand versus an alliance led by New Zealand.

Division Champions

World Champions

Technology Division Community Award

2915A Lynfield College 2941D Outmoetai College

World Finalists

2941A Otumoetai College

Robot skills Champions

1st 2915A Lynfield College 2nd 2941A Otumoetai College

World Educate Award

Glenfield College for their astounding integration of robotics into their curriculum. One students comment that robots we use in biology in an ‘is it alive?’ question really impressed the judges.

www.nzmanufacturer.co.nz

• Structural

principles for composite elements. • Design of composite beams according to the forthcoming AS/ NZS 2327. • Design of composite slabs and profiled steel decking to AS/NZS 4600 and forthcoming AS/NZS 2327. • Design of composite columns according to the forthcoming AS/ NZS 2327 and AS/NZS 5100.6. • Detailing and good practice for composite construction. Seminar venues and dates: Wellington   21 May Auckland       22 May Christchurch 28 May Queenstown 29 May To register for the seminars, please visit the HERA Events Calendar on www.hera.org.nz

New Zealand Won 3 of the 5 high school divisions!

Math Division Amaze Award

2941A Otumoetai College

2919A Glenfield College

Science Division Think Award 2941B Otumoetai College

Spirit Division Amaze Award 7682 ACG Parnell

A phenomenal effort by all our teams, New Zealand has proved that yet again we are the country to beat and that we are the most friendly country and liked by all. It is astounding how far above our weight we punch and how we are respected and liked by teams across the world.

Trade Mission to Indonesia, anyone?

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xportNZ and ASEAN NZ Combined Business Council are maintaining the momentum gained from this year’s Indonesia Forum by planning a Trade Mission to Indonesia – aimed for May. More information will be provided as planning develops.

At this stage we are seeking Expressions of Interest from companies who would like to participate on a Trade Mission to Indonesia – please contact Catherine Lye at ExportNZ Auckland at email catherine@exportnz.org.nz or phone 367 0970 or 021 636 219.

Employment law changes welcomed

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usinessNZ has welcomed changes announced to the Employment Relations Act. Most changes were announced prior to the 2011 election. Additional amendments to speed up processes Employment Relations Authority were also released. BusinessNZ Chief Executive Phil O’Reilly says the overall effect will be to make the Employment Relations Act simpler and more efficient and enable more flexibility in the workplace. “Improving employees’ ability to seek flexible working arrangements and simpler arrangements around meal and rest breaks will be of general benefit. “Removing compulsion from parties involved in multi-

employer bargaining, removing the compulsion to settle a collective agreement, and removing compulsion for new employees to join a collective agreement will allow for improved employment relationships.” Mr O’Reilly said that the proposed change to the rules around transfer of employees when contracts change hands, to include exemptions for all businesses with fewer than 20 employees, would need to be studied carefully to ensure unintended consequences did not arise. “Overall, these changes will allow more flexibility and certainty for businesses, allowing for more growth and job creation,” Mr O’Reilly said.


NZ Manufacturer April 2013

The principal mark of genius is not perfection but originality, the opening of new frontiers. – Arthur Koestler

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DEVELOPMENTS

Polar Rover first wind-powered Antarctic explorer

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esearchers from China’s Kunlun Polar Research Team in Antarctica have developed the world’s first wind-powered, satellite controlled, autonomous robot called the Polar Rover. Polar Rover harvests wind energy with the help of top mounted turbine of 200 watts built by New York’s Urban Green Energy (UGE). It uses numerous sensors that include atmospheric sensors, snow samplers, and geography and geology analyzers as it goes on exploring the Antarctic sheets to document the impact that global warming has on the region. The autonomous robot which is 1.8 meters long, 1.6 meters wide, 1.2 meters high and weighs 300 kilograms made its maiden voyage last month wherein it covered an impressive 1,550 miles in 58 days at an average height of 4,000 meters above the sea level. The rover is capable of tackling the obstacles as high as 0.5 meters and what’s even worth noticing is the fact that small four wheeled vehicle didn’t topple over even in severe windy storms that the continent is known for. The vertical axis wind turbine

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sitting atop the Polar Rover is certainly the most significant addition to China’s Kunlun Polar Research Team in Antarctica. The compact wind turbine named “HoYi!” can be installed anywhere, from the Antarctic to marine environments – it is even rated to

withstand hurricane force winds. Polar Rover which is capable of moving swiftly in cold temperatures, geomagnetic interferences, cosmic rays or for that matter, in severe environmental conditions is surely a move ahead in environmental robotic practices to make earth a

better place to live. The use of wind power in the Polar Rover also offers long lasting performance while monitoring the environment. Polar Rover is not the first robot to be used in Antarctic ice, but the combination of renewable energy source is a promising feature in it.

Quality graphics leaders unite for distribution

ne of Australasia’s leading suppliers of print industry graphics equipment, J.L. Lennard Pty Ltd, is to distribute the premium products of one of the world’s longest established and most innovative specialists in inks, Royal Dutch Printing Ink Factories Van Son. J.L. Lennard – which is itself one of Australasia’s longest established companies – will distribute top quality inks offering the high performance and outstanding reliability and consistency of the huge specialist ranges of offset, flexo and digital inks produced by Van Son, which was founded in 1873. The General Manager of J.L. Lennard Graphics Pty Ltd, Mr Tony Colella, says Van Son has flourished by meeting the challenges of the printing market worldwide with an expanding portfolio of innovative products known globally for quality standards that imitators cannot reproduce. “Van Son’s innovation and focus on value and quality is clearly evident in the initial ranges of products that J.L. Lennard graphics will introduce to Australasia, including: • Quick Son Supreme series of process inks • Sonadry waterless printing ink

Van son Inks meets with J.L. Lennard. (Left To Right) Rob Hoving (International Technical Sales & Project Manager) Van Son Inks; Benno Prijs (Sales Director) Van Son inks; David Boekemann (Managing Director) J.L. Lennard P/L; John Richmond (Technical Services) J.L. Lennard Graphics P/L Tony Colella (General Manager) J.L. Lennard Graphics P/L

• Vs Zero Ink Series which are VOC-free (Free of Volatile Organic Compounds) • Intense Black “The initial range will be expanded where required as the market appreciates the advantages of quality, performance and consistency that lesser brands have never been able to match. Van Son has instead extended its market leadership through innovation and service, with subsidiaries being established in the US and Asia

to complement its strong global network of distributors, of which J.L. Lennard Graphics is proud to be part.” J.L. Lennard, founded in 1879, is a market leading diversified company known for its tradition of strong, open relationships in dealings with customers, suppliers and staff, so as to deliver consistently high standards of quality, service and integrity. In addition to graphics, it is a leading supplier of food and

beverage processing, packaging and engineering technology through its Packaging Machines Division, Food Equipment Division and Engineering Division. J.L. Lennard’s global graphics brands in addition to Van Son include Classic Colours Waterless Inks, Savatech Printing Blankets, Finito, Toray Waterless Plates, Pavan, Shindoa, Timsons Book Presses, Flowstar Spray Powder, Toyobo Flexographic Plates and Policrom Packing to name a few. www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

LEAN MANUFACTURING Safety in Lean manufacturing

Diplomacy is the art of letting someone else have your way. – Sir David Frost

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hen it comes to lean manufacturing, there’s a seemingly neverending stream of phrases to identify the various methodologies—5S, kanbans, value-stream mapping, spaghetti diagrams, kaizen, kaikaku…the list goes on and on. And we don’t see safety in there anywhere. A lot of the time it’s an after thought.Lean safety is about being more efficient, better and more cost-effective. And the results can be immediate. There’s been quite a bit of focus on lean manufacturing, eliminating waste in all its forms, whether that’s as scrap/re-work, transportation, associated motion, wait times, inventory, over-production, overprocess or underutilization of people. But there are common misconceptions that keep manufacturers from integrating safety into lean manufacturing. People think there’s no place for safety in lean, that safety will just impede things and that processes will slow down. Other misconceptions are that the cost will be too high to upgrade every machine in a plant; safety systems will just get bypassed anyway because they stop people from doing their jobs; or a particular process is just too important. People say, ‘There’s no way I can shut this machine down. This machine makes the most amount of money of any machine. If I shut it down, my profits and bottom line will be affected,’” However, done properly, lean safety will have just the opposite effects. One example is a corrugated box manufacturer who integrated safety into its process and not only met the necessary standards and regulations, but reduced machine setup time significantly. The changes saved about 30 seconds per setup for the manufacturer’s printing press. Running two shifts a day, with an average of six setups per shift, the company gained more than 35 hours of production per year. Implementing safety doesn’t necessarily result in lost production. Did safety impede production here? It actually helped it. But it needs to be done properly, with a well-formed team and effective communication. The team, ideally, should have four to eight people, with some combination of operators, supervisors, EH&S personnel, maintenance personnel, process, system or design engineers, the machine builder/OEM and safety consultants. www.nzmanufacturer.co.nz

The best person to have on that team is the second-shift operator. He or she knows the intricacies of the machine because they deal with it day in and day out. They also are the people who have to deal with that machine with the least amount of operational support. The team, once assembled, needs to perform a risk assessment. It is the only way to truly evaluate your machinery. Done properly, the risk assessment should be able to identify any issues that could arise with the machinery. And it promotes effective communication by dealing with and involving all stakeholders. There is a wide range of standards that manufacturers can follow— from ISO 13849-1 to EN 954-1—and it can get pretty confusing. 90% of the time when trainers walk into a facility, they have not performed or even heard of a risk assessment.

Implementing lean safety, as with other lean manufacturing programs, has to start with management

It is recommended to use a methodology with the least amount of criteria to worry about. The more criteria, the more opportunity to get into a gray area, where maybe classifying the risk or hazard appropriately, and then maybe not putting put the appropriate safeguarding on. The more criteria, the more confusion you can introduce into that process. For many companies, introducing the concepts of lean safety and risk assessments requires a cultural shift—a shift away from spending the least amount of money possible by avoiding the latest technologies,

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away from not meeting or exceeding industry standards, and away from current ideas about training. Training often ends in the classroom; there’s little on-the-job follow-up. With a new machine, there’s quite a bit of training that could be required. And it has to be consistent. Implementing lean safety, as with other lean manufacturing programs, has to start with management. It starts with effective communication, a good team and diligent implementation. If those steps aren’t taken, we’ll never achieve our goals.

Lean manufacturing initiative set to grow

n 2012, Venture Southland coordinated a pilot project, funded by the Ministry of Business, Innovation and Employment, with three Southland businesses testing a Lean Manufacturing Initiative, aimed to get businesses to identify areas where efficiency could be improved and implement management plans to action those changes. Business consultant and “lean thinking” specialist Clinton Yeats

helped Quality Foods Southland, Ballance Agri-Nutrients and Fibreglass Innovations identify barriers in production by putting together systems to streamline processes. Due to its success, a 2nd Lean Programme is kicking off with five Southland-based companies getting started in April, with the training schedule to run until the end of the year.


NZ Manufacturer April 2013

25

ANAYSIS Small to medium businesses finally optimistic

The trouble with the rat race is that even if you win — you’re still a rat. – Lily Tomlin

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esearch by MYOB indicates that while local business owners see a long road ahead for the economic recovery, positive revenue prospects have boosted their confidence. The latest MYOB Business Monitor report found small and medium business operators (SMEs) are optimistic about their prospects in the year ahead. This is despite only a one percentage-point increase in the proportion of SMEs whose revenue rose in the prior year, when comparing the latest study with the June 2012 study. The Monitor research, a national survey of 1,000+ SMEs commissioned to independent market research firm Colmar Brunton, has run since 2009. It explores business performance, attitudes, plans, and more over time. In this study, one quarter of business operators (24%) expected the economy to improve within 12 months – up on 18% in June 2012. Two thirds (66%) expected improvements in more than one year and the remainder were unsure. Revenue expectations had also improved, as had the level of work in their quarterly pipeline. MYOB NZ General Manager, Business Division, James Scollay says it suggests business owners have welcomed a more positive last quarter of 2012 and are hoping to extend that to performance in 2013. “New Zealand businesses have been determinedly resilient throughout the economic recovery and we see them becoming more confident despite the protracted pace of improvement,” he says. “32% of SMEs experienced a revenue increase over the last year and 38% experienced stability, which is positive. However, what’s more telling is the 41% expecting an increase in the coming 12 months, in addition to 42% who expect stable revenue. Things appear to be on the up for the engine room of our economy.” Christchurch is leading the way ahead of other main cities as it sees

KEVIN KEVANY

increased momentum in its rebuild, it leads the way in the recovery. The city is well ahead of other main cities when it comes to economic positivity, revenue growth and expectations. 34% of Christchurch operators were optimistic the economy will improve within 12 months, compared to a 24% national average. Auckland followed closely, with 30% expecting an improvement within 12 months. Only 15% of Wellington respondents agreed. Not only have 45% of Christchurch SMEs seen a revenue rise in the last 12 months, up 17 percentage points since the last study, 57% expect to see a rise over the coming year. They also have a significant work pipeline, with 35% reporting more worked booked than usual for the upcoming quarter, compared to 19% with less work. The proportion of businesses struggling with the slow recovery has also declined in Christchurch, with only 23% stating a revenue loss in the latest Business Monitor. This compares to 40% in the prior study. “Christchurch businesses were 27% more likely to see a revenue rise in the past year than the other main centres. Their financial performance had improved considerably since June 2012 as had their performance expectations for the future,” Mr Scollay says. “This notable change suggests the rebuild, which has had a significant upswing in the last six to eight months, is flowing through

Research by MYOB indicates that positive revenue prospects have boosted confidence.

09 520 5206 kevwrite@xtra.co.nz

PETER ISSAC

06 340 8134 peter.isaac@xtra.co.nz

to the wider local economy.” Revenue improvement in Wellington and Auckland has not been as strong as in Christchurch. In fact, these cities experienced slowed growth last year. Despite 33% of businesses in the capital reporting a revenue rise (compared with 23% reporting a fall) and 32% of businesses in Auckland reporting a rise (compared with 23% falling), both cities are off the pace set mid last year. At that time, 40% of Wellington businesses and 35% of Auckland businesses reported revenue rises. This highlights the ongoing challenges of a sluggish recovery. However, Auckland SMEs are more positive about their performance in 2013 - 45% projected a revenue rise in the next 12 months and 36% projected stable revenue. This compared to 31% and 54% in Wellington. New work in Wellington is relatively steady in comparative terms for the upcoming quarter, with 18% of businesses reporting more pipeline work than usual and 16% reporting less. 34% of Auckland businesses have more work on for the quarter, compared to 21% with less. “With the public sector tightening its belt, Wellington businesses are feeling a pinch,” affirms Mr Scollay. “Auckland businesses, however, continue to be buoyed by a strong finance and property sector, and signs of improvements in local retail and manufacturing.”

Revenue results within sectors

The survey also found some sectors have struggled more than others throughout the recovery. Further good news is that three fifths of the Finance and Insurance sector (59%) and almost half of the Business, Professional and Property sector (46%) expect to see revenue rises in the next 12 months. In contrast, the Retail and Hospitality sector, Manufacturing

DAVID BURKE-KENNEDY 09 473 8635 dbk@compublicity.co.nz

and Wholesale sector, and Agriculture, Farming and Foresting sector were more likely to have seen revenue decline than increase over the past 12 months. Respectively, those figures were: 38% decline versus 29% increase, 35% versus 27% increase and 38% decline versus 21% increase. Unsurprisingly, these operators weren’t as confident about 2013. “Industries such as retail, manufacturing and agriculture have borne the brunt of low consumer confidence and a high dollar,” says Mr Scollay. “However, within these lower performing sectors, businesses that introduced greater efficiencies in their operations and processes saw areas of growth. So too did those who took advantage of cost effective means of reaching customers, such as establishing an online presence and investing in e-commerce. After experiencing tougher trading conditions over the past few years, Construction and Trade businesses projected a significantly improved 2013. 31% experienced a revenue rise over the last year, while 39% reported stability. In the coming year 42% are expecting a rise and 42% expect revenue to remain stable.

Fuel no longer biggest pressure point

With the consumer dollar top of mind, the most common pressures small and medium business operators say they will experience in the next 12 months have changed since the June 2012 Business Monitor. In the latest Monitor, cash flow and price margins and profitability tied for first place after rising from second and third in the previous study. 63% of business owners expected to face some kind of pressure from these in the year ahead. Fuel prices (61%) fell two places to third, tying with attracting new customers (61%), which rose from fourth place. Competitive activity remained in fifth place (58%).

SANDRA LUKEY 021 2262 858

sandra@shinegroup.co.nz

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NZ Manufacturer April 2013

ADVANCED MANUFACTURING

Our greatest glory is not in never falling, but in rising every time we fall. – Confucius

The factory-floor knowledg

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igital manufacturing with 3D printers is for some enthusiasts an anti-consumer concept, promising a return to a craft ethos and an end to outsourcing. But this may not be the real future of the technique. The third industrial revolution might come with personal or digital manufacturing, when what used to be bought in a shop could be made at home with such tools as laser cutters, 3D printers and computer numerical control (CNC) milling machines. They are all based on the same principle, using software to helpguide the movements of a machine tool, and the one that has attracted the most attention is a printer that prints three-dimensional objects, with a nozzle that lays down a plastic material layer by layer. Designs for the printer of such objects as doorknobs or bicycles can be downloaded from the net. The technology was developed by a loose network of hobbyists or “makers”, whose homemade 3D printer is called RepRap. They are rooted in the world of free software and strive to apply the same values and practices to manufacturing; some aspire to democratise the means of production and abolish consumer society. It is often predicted that 3D printing will reduce labour costs and lessen the incentive of firms to outsource production to low-costlabour countries.

Change happens

CNC machinery came out of numerical control (N/C) machinery — automated machine tools — which originated in the context of the cold war, its development largely funded by military contracts. The technology was thought to be crucial to the arms race against the Communist enemy, and the fight against unions; a major source of union strength was the workers’ knowledge monopoly over the production process.

Fooling the employers

This had been identified by Frederick W Taylor, in his principles of scientific management: “The managers assume ... the burden of gathering together all of the traditional knowledge which in the past has been possessed by the workmen and then of classifying,

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tabulating, and reducing this knowledge to rules, laws and formulae which are immensely helpful to the workmen in doing their daily work.” The pages preceding this quote describes the ways that workers can pretend that they are working at full speed to fool their employers. A benchmark of average performance had to be established so that lazy, dishonest workers could be detected, but when engineers were sent in to measure worker productivity, the workers learned how to fool them too. Compliance could be enforced through the design of the machinery. In the early 19th century, the British mathematician Charles Babbage travelled to observe different branches of industry, and then produced a catalogue of ingenious mechanisms by which the honesty of servants and workers could be ensured in the absence of their master. He declared: “One great advantage which we may derive from machinery is from the check which it affords against the inattention, the idleness, or the dishonesty of human agents”. Babbage is chiefly remembered as the “father of computers”, due to his pioneering experiments with calculating machines; his Analytical Engine was programmed with punched cards, “software” that was used a century later in N/C machines. Software realised the dreams of control of Babbage and Taylor: “Essentially, this was a problem of programmable automation, of temporarily transforming a universal machine into a specialpurpose machine through the use of variable ‘programs’, sets of instructions stored on a permanent medium and used to control the machine. With programmable automation, a change in product required only a switch in programs rather than reliance upon machinists to retool or readjust the configuration of the machine itself.”

It is often predicted that 3D printing will reduce labour costs and lessen the incentive of firms to outsource production.

The aim of reducing managers’ dependency on skilled machine operators was an incentive behind the development of N/C technology, as were the need to manufacture parts that could not easily be constructed manually, the imperative of increasing productivity and, as far as the researchers at the Massachusetts Institute of Technology (MIT) were concerned, the joy of solving mathematical problems. There were alternatives that would have had less adverse consequences for workers, but these were deliberately not pursued.

A repressed memory for makers

This puts the enthusiastic claims for 3D printers into perspective. One claim is that laid-off American workers can find a new source of income by selling printed goods over the Internet, which will be an improvement, as degraded factory jobs are replaced with more creative employment opportunities. But factory jobs were not always monotonous. They were deliberately made so, in no small part through the introduction of the

same technology that is expected to restore craftsmanship. “Makers” should be seen as the historical result of the negation of the workers’ movement. Many high-profile makers are students and teachers at MIT, which played such a decisive


NZ Manufacturer April 2013

There are a thousand excuses for failure, but never a good reason. – Mark Twain

ge economy

role in the creation of N/C and CNC technology. This history returns as a repressed memory for makers, in their obsession with abandoned factories and scrap yards. Detroit, the global symbol of deindustrialisation, is repeatedly

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ADVANCED MANUFACTURING

featured in Make magazine and associated blogs. Catherine Fisk, a lawyer, has gone through old trials in which employers and employees confronted each other over the ownership of ideas. In the early 19th century, courts tended to uphold the customary right of workers to freely make use of knowledge gained at the workplace, and attempts by employers to claim the mental faculties of trained white workers were rejected by courts because this resembled slavery too closely. As the knowhow of workers became codified and the balance of power shifted, courts began to vindicate the property claims of employers. This lends a different aspect to the makers’ ideas about alternatives to copyright, such as free software licenses and Creative Commons. Some researchers have warned that these might end with workers exploiting themselves. There is a crowd sourcing platform owned by Amazon, where net users are invited to solve simple tasks, such as identifying people in photographs. The average income of an “employee” is $1.25 an hour. Plans are already being worked out for integrating home 3D printers into a flexible production line; and it is easy to see how this could lead to downward pressure on wages in the industry. Adrian Bowyer, the instigator of the RepRap project says: “It might not be such a bad thing for workers, because they would not have to buy as many things in stores.” So the struggle is to be fought out at the point of consumption, involving intellectual property legislation and the design of the tools made available to the general public. While some hobbyists strive to develop a machine that corresponds to their ideals about distributed production, entrepreneurs, investors and intellectual property lawyers back a very different idea of what the 3D printer might become. The stakes were spelled out in the Technology Bill of Rights, proposed in 1981 by the International Association of Machinists (IAM), when CNC machines were making inroads into manufacturing industry. The manifesto declared: “The new automation technologies and the sciences that underlie them are the product of a world-wide, centurieslong accumulation of knowledge. Accordingly, working people and their communities have a right to share in the decisions about, and the gains from, new technology.”

What is advanced manufacturing?

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dvanced manufacturing is the process of mass producing products on demand, using the latest technology maintain efficiency. Though most manufacturing processes can be easily executed by what has been traditionally referred to as “unskilled labour,” this higher level of manufacturing requires specialized training. Another name for advanced manufacturing is advanced (APS). Manufacturing is heavily dependent on the volume of orders. As demand picks up, manufacturing must also pick up to meet the demand. In traditional manufacturing, the manufacturer, wholesaler or retailer may rely on stockpiled quantities to meet temporary fluctuations in demand. A large increase however, would require increasing production by adding extra shifts, extra assembly lines, or even opening new facilities. This allows the traditional manufacturer to keep its general operating schedule intact, but such changes are both costly, and risky, but it, since layoffs and plant shutdowns may be necessary if the demand ever goes back down. Advanced manufacturing is a more flexible technique that can be specifically adjusted to changing needs. Instead of building in orders to put products into stock for later sale, advanced manufacturing takes

Advanced manufacturing is a more flexible technique that can be specifically adjusted to changing needs.

a different approach. It builds for immediate, or nearly immediate, sale. This means products being produced are not months or years old out of the box. Rather, they may be just days or weeks old, depending on how far they must travel to get to their final destinations. Though it may seem as though this type of arrangement would be more susceptible to staffing changes, there are ways layoffs can be avoided. First, advanced manufacturing facilities are often suited to produce more than one thing. Thus, when demand slows for one product, staff is shifted to the manufacture another. Second, the reliance on machines and electronics means nearly the same amount of staff is needed whether it is busy or slow. Of course, the highest efficiency in any business is realized when running at maximum production levels. There are some industries that are very well suited for advanced manufacturing techniques. The computer and television industries can handle this type of manufacturing very well. Many computers are made to order, or at least built on demand. This allows the client to have a little more input than they may normally have as far as features and hardware components. In other words, advanced manufacturing is not one size fits all. Other industries and products may be harder to adapt to an advanced manufacturing technique. Some things, such as an air conditioning units or furnace units for example, take a considerable amount of infrastructure and machinery specifically set up for the process. Therefore, finding something else to make with that machinery without significantly altering it, or the line, would be very difficult. www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

DEVELOPMENTS

It’s a well-known proposition that you know who’s going to win a negotiation; it’s he who pauses. – Robert Court

More companies looking overseas for M&A opportunities

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fter a period of consolidation following the Global Financial Crisis, more New Zealand companies are considering cross-border mergers and acquisitions as they look to build scale and gain access to new geographic markets. Martin Gray, Head of Lead Advisory for Grant Thornton New Zealand, said that New Zealand was on a par with the global average (39%) but the trend was definitely up. “In the 2012 survey only 24% of New Zealand companies looking to acquire were thinking of expansion through cross-border mergers and acquisitions against a global average of 33%. This increase by New Zealand companies is a reflection of what has been happening internationally over the last five years where the expectation that cross-border merger and acquisition activity will drive growth has increased 56% since 2008. “With our size, geographic isolation and intellectual property, it is imperative that we are above the global average when it comes to cross-border acquisitions. We need to be involved in those parts of the value chain that provide the greatest margin for the value we bring to the table. “Where is the New Zealand strategy to help our companies

Martin Gray

acquire businesses internationally so that they become more involved in this chain, thereby reaping larger profits? “For New Zealand our stars are aligned when you look at our products, our position in the market and our intellectual property in sectors experiencing strong growth,” he said. The main drivers for New Zealand companies to grow through acquisition were to build scale (69% compared with 61% in 2012), accessing new geographic markets (49% compared with 59%) and acquiring new technology or established brands (42% compared with 41%). Gray said that there has been a lot of consolidation in New Zealand since the GFC with strong companies

Partnership offers significant benefits

N

ew Zealand Governmentowned AsureQuality and PwC New Zealand have today signed a collaboration framework agreement with China Mengniu Dairy Company Limited and COFCO Corporation to investigate the development of a China New Zealand agribusiness service and Food Safety Centre of Excellence in China. Initially AsureQuality and PwC will work with Mengniu and COFCO on a dairy-related food safety and farm assurance project. As the partnership evolves it is expected that additional New Zealand commercial and research entities with expertise in other areas of the agricultural sector will be brought in. AsureQuality’s CEO Mr Michael Thomas and PwC New Zealand’s CEO Mr Bruce Hassall, who signed the agreement in Beijing today, say, “This agreement acknowledges the expertise held by AsureQuality, and the benefits that formal collaboration offers for us, and potentially the wider New Zealand agribusiness

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sector, in the Chinese market. “We believe this partnership agreement will enable New Zealand’s world-class food safety models, agricultural systems and skill sets to be provided on a commercial basis in China. “As we sign this agreement today, we acknowledge the inaugural New Zealand China Council Partnership Forum led by the Prime Minister John Key, the 40th anniversary of diplomatic relations, and the fifth anniversary of the China New Zealand Free Trade Agreement, all of which reinforce the strong relationship between New Zealand and China.” The partnership also has the support of New Zealand Trade and Enterprise (NZTE) and is the result of extensive research work commissioned by NZTE and carried out by PwC in 2012 to identify international opportunities for New Zealand’s agribusiness sector. In addition, agritechnology is a sector of focus for New Zealand in China, as outlined in the NZ Inc China Strategy.

having acquired competition as the weak either disappeared or were swallowed up. “This is reinforced in two ways by the research. The first is the increase in cross-border acquisitions and the second is an actual fall in the number of New Zealand companies looking to expand through acquisition from 30% in 2012 to 24% this year, a trend reflected internationally where percentages have dropped from 34% to 28%,” he said. The research also showed New Zealand company owners (24%) as the second most likely in the world behind Finland (26%) to sell their businesses in the next three years against a global average of 7.6%. “This is indicative of the number

of small businesses we have in New Zealand, and also the age of the owners with many baby boomers looking to retirement. “The interesting aspect to this is how these owners believe they will be bought out with 47% believing it will be either management or family and 31% a competitor or trade buyer. “As stated earlier, there has been a consolidation in the number of competitors or trade people looking to buy other businesses, so family and management will take a more prominent part. Trade buyers have largely acquired the businesses that they want and owners need to turn to management and make it as easy as possible for them to acquire the company,” he said.

PowerbyProxi announces $5m in Series C funding

TE Connectivity a world industry leader in connectivity solutions, and PowerbyProxi, (www. powerbyproxi. com) developer of the world’s most advanced and safest wireless power system, have announced a new partnership combining TE’s history and market position in the industrial connector space with PowerbyProxi’s expertise and intellectual property in wireless power. PowerbyProxi also announced it has closed a $5 million Series C funding round. TE has taken an equity stake in PowerbyProxi and existing investor, New Zealand venture capital firm, Movac, also participated in the round. “Our proven innovation and miniaturization in the field of wireless power transfer was compelling to TE and we are excited to work with the TE team on the future of wireless power ” said Greg Cross, Executive Chairman of PowerbyProxi. “This new round of investment demonstrates faith in the growth of this sector and the milestones we have achieved. We will use the funds to grow our international sales and customer support structures and to accelerate the development of new technology platforms,” said Cross.

TE Partnership Creates Innovation

The first outcome of PowerbyProxi’s partnership with TE is the ARISO Contactless Connectivity Platform, a miniaturized contactless connectivity solution, small enough to be easily integrated into

new applications for industrial machinery and equipment. The new line of non-contact couplers, being sold and marketed by TE, incorporates PowerbyProxi’s ProxiWave technology, which is ideal for miniaturization. The platform offers the smallest footprint solution available for contactless power connectivity on manufacturing machinery and equipment for sensor and control applications. TE is now manufacturing evaluation kits so its customers can test the hardware in their own environments, alongside TE’s field engineers. The ARISO Contactless Connectivity system is 70% smaller than currently available systems and brings the possibility of wireless power transfer to applications where it was previously considered impossible. “Our investment in PowerbyProxi highlights our commitment to contactless connectivity and to the development of solutions to help our customers with their power connection needs,” said Ulrich Wallenhorst, chief technology officer of TE Industrial. “PowerbyProxi possesses innovative design capabilities in wireless power transmission that complement the TE Know How and technologies, resulting in a proven working partnership. We look forward to working together on expanding current products and developing new solutions.” The ARISO Contactless Connectivity platform was introduced at the Electronica and SPS/IPC/Drives trade fairs in Germany in November 2012.


NZ Manufacturer April 2013

Place a higher priority on discovering what a win looks like for the other person – Harvey Robbins

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FOOD MANUFACTURING

New intelligent Tetra Alcip

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he latest, ‘smarter’ CIP solution saves time, reduces environmental impact and cuts cost while enabling uncompromising food safety. The intelligent cleaning-in-place (CIP) Tetra Alcip system features a new automation platform, Tetra Alcip improves accuracy significantly over alternatives and reduces the risk of human error, helping food and beverage producers achieve uncompromising levels of food safety at lower environmental and operating cost. Tetra Alcip gives customers complete control of CIP to deliver perfect cleaning results, reduced environmental impact and enhanced food safety, Thanks to Tetra Pak’s deep knowledge in cleaning technology and a patented automation structure, the new Tetra Alcip unit is now more intelligent and safer than ever. The new industry-leading intelligent automation platform continuously adjusts operation to

The new industry-leading intelligent automation platform continuously adjusts operation to deliver the highest performance levels.

A

deliver the highest performance levels. It brings customers precision — using the optimum amounts of water and detergent for the exact time needed to get the job done. It can cut water usage by up to 21 per cent and detergent use by up to 7 per cent, reducing both environmental impact and cost. The system’s automation platform enables a range of unique features designed to bring customers flexibility: • Conductivity management – a feature that enables the best possible accuracy on detergent concentration, which assures the highest food safety without unnecessary overdosing of detergents. • Liquid tracking – a patented automation structure to keep track of different liquids in the cleaning process. This gives greater flexibility and better precision for control and sorting of liquids. • CIP management – control of cleaning programmes. Tetra Alcip comes with a number of pre-set cleaning programs. Customers can also create their own cleaning programmes, which are automatically validated before use. • Queue handling – the ability to queue and prioritise, giving the user maximum flexibility and availability. Urgent cleaning jobs can be prioritised. • Flexible dosing system – enabling the customer to control detergent concentration continuously, in line. This allows the topping-

up or boosting of the detergent concentration at any time without having to stop to mix new detergent. Tetra Alcip is a future-proof investment: offering short payback time thanks to the significant savings in operating costs; and opportunities

to reconfigure, expand and upgrade if needed. The latest Tetra Alcip solution is built on Tetra Pak’s leadership in and deep knowledge of CIP technologies. This, combined with high reliability, has resulted in more than 1,600 Tetra Alcip units installed around the world.

Affordable technology for food industry

new, compact and affordable family of titrators- The EasyPlus - are specifically designed for basic requirements and first time users of automatic titrators in the food and chemical industries. Drawing upon extensive knowledge and experience of hard and software engineering has produced a small, affordable and reliable instrument. Decades of titrator engineering experience, coupled with the latest technological advancements in processors and touch screens, have led to the development of the EasyPlus concept. Previous models have focused on advanced automation solutions, flexible method structures and secure networking software. EasyPlus models focus specifically on accurately automating routine titrations which has motivated

the EasyPlus development team to create a highly reliable titrator encased in the smallest possible housing and with a simple userinterface. Apps are part of our modern lives, which led to the decision to model the EasyPlus interface on the familiar and accepted App format. New operators already know and understand this interface style making familiarisation and operation quick and easy. To keep programming fast and simple, Titrate guidance leads operators through setup and method programming step-by-step. The EasyPlus also has 15 different operating languages, making it a truly global instrument. The EasyPlus Titrator was designed and priced to compete with classic analytical procedures. Using an automated titrator has

some obvious, and not so obvious, benefits. Apart from the improved accuracy and reproducibility of

results, titration software stores and collates all records and archives data to minimise confusion, errors and misinterpretation of results.

• Do you have a story you want to share? • Developments? • New markets discovered? • How are you finding business in this challenging economy? Email Doug Green at words@xtra.co.nz and we’ll share your story with readers. www.nzmanufacturer.co.nz


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NZ Manufacturer April 2013

ENERGY REPORT

The entrepreneur builds an enterprise; the technician builds a job. – Michael Gerber

Behaviour lags behind sentiment for alternative fuels

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hile New Zealand as a country becomes greener in its thinking, as evidenced in the last general election, it still lags well behind the world in the actual adoption of policies such as alternative fuels for vehicles. New Zealand is at the bottom of a list of 40 countries for businesses considering, or having already introduced, alternative fuels for their vehicles. Simon Carey, Partner, Grant Thornton New Zealand, said that only 7% of the companies surveyed had considered or were using alternative fuels against a global average of 24%. Japan (48%) led the way followed by Malaysia, the Philippines and Turkey, all on 46%. The United States was 27%, the United Kingdom 24% and Australia 15%. “At first glance the figures look terrible, but need to be put into perspective in light of the makeup of the New Zealand economy, our geography, and the improving awareness and acceptance of green initiatives. “There is certainly a lot of work to be done, but we are moving in the right direction,” he said. Carey cites the lack of big businesses in New Zealand as a key factor at our lack of adoption of alternative fuels, and the logistical

headaches caused by our elongated country and rugged terrain. “Basically we are a country of small to medium sized businesses that do not have the balance sheets and fleet size to make an impact. And for many of these businesses, since the Global Financial Crisis, the last few years have been all about survival rather than adopting green initiatives, which might put pressure on their bottom line. “Half of the New Zealand businesses noted cost as a deterrent while 37% were concerned about the difficulty in refuelling or recharging their vehicles given New Zealand’s ribbon-like infrastructure,” he said. Carey said that all was not necessarily gloom and doom as shown by the popularity of the Green Party in the elections, the growing number of green taxis and hybrid vehicles on our roads and the introduction of the Emissions Trading Scheme.

Simon Carey

There is certainly a lot of work to be done, but we are moving in the right direction.

“There is a lot of attention being invested into New Zealand’s ‘clean – green’ image, which is great. Also, as a country the few large companies we do have demonstrate a social conscious when it comes to green matters. Look at Air New Zealand and how it has been trialling alternate fuels. “However, for the momentum to

accelerate and to see improvement in figures such as these of the adoption of alternative fuels for our vehicles, then it is going to require more effort from central Government. “We’re heading in the right direction, but some solid support from the Government will definitely consolidate and accelerate our green consciousness,” he said.

The requirements for liquid and steam line systems in modern power plants are increasing: significantly higher pressure, flow and temperature values result in increasing strain on the systems. At the same time, the legal constraints and requirements are intensifying. Leakages can result for example in costly repairs or – which is worse – investigations, fines and even a deactivation order from the relevant regulatory authorities. This makes the use of durable, safe and effective tube systems and solutions all the more important. Whereas thick-walled highpressure tubes and pipes have been welded together for decades from various straight and pre-bent tube components, modern tube bending processes offer significant advantages with respect to safety, subsequent maintenance and the requirements of the present tube parameters as well as last but not least appreciable benefits in terms of manufacturing costs and times. Efficient production of manifolds, steam and pressure lines The semi-automatic SR 320 tube bending machine and the automatic

CNC 320 HD produce complex tube systems in one operation from a single tube for pressure and steam lines, manifolds and similar tubes. Being equipped with special tools, the machines bend thin and thickwalled tubes with a maximum diameter of 323.9 x 17.5 mm. With a tube size of 323.9 x 10 mm, for example, they have no problem producing a bending radius of 1.5 x D, which is equivalent to a bending radius of 485 mm in the example mentioned. The semiautomatic machines in the SR series are particularly suitable for the production of single bends and small series.

The automatic, CNC-controlled machines are also suited to complex tube systems with several bends or large batch sizes. Whereas hot shaping of these work pieces takes around eight hours, customers require an average of only six minutes for one bend. The machines are from a heavy duty machine series for various diameters and wall thicknesses up to 610 x 21.4 mm. They are available in semi-automatic design with SR control and in automatic design with CNC control. All machines can be equipped e.g. with a tube magazine and tube feed and enlarged up to fully automatic bending cells.

New bending technology for energy efficiency systems

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ccording to estimates by the International Energy Agency (IEA), energy demand of the world population will increase drastically in the coming years: in 2030, around 5.5 billion people will have access to the electricity supply – this is equivalent to growth of 1.5 billion consumers within only slightly more than two decades. To meet the increased energy demand, in addition to investment in renewable energies, the construction of new power plants and modernisation of existing facilities in particular are vital. One critical criterion is to significantly improve efficiency in the power plant process. The requirements for the installed tube systems and tube materials are therefore also increasing, as they make a noticeable contribution to increasing efficiency. Special bending machines have been developed for precisely this application area, which bend highstrength, thick-walled high-pressure tubes as well as boiler tubes, tube coils and entire membrane tube walls accurately and both time and cost-effectively.

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NZ Manufacturer April 2013

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

Levelling the Playing Field

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ocal industry is well used to contract conditions when tendering, and to the fact that the project owner will typically retain part of the payments due to the vendor as security against the proper completion of the work being undertaken. This is a cost factored into the price that local industry quotes when tendering. It’s a cost of doing business in the New Zealand market that industry must accommodate and it is equally applied to all local tenders, so it’s usually accepted as fair and in that regard, local suppliers are competing on a level playing field. Most of the major infrastructure projects in New Zealand are connected in some way to Government, which isn’t a surprise since Government makes up a large portion of our economy and you wouldn’t expect them to support any process that unfairly discriminated against New Zealand industry as suppliers on projects paid for with public money. However, the increasing trend for procurers to seek the cheapest

option has seen the development of some bumps in the playing field that would be quickly rolled flat if it was a cricket ground. The problem comes from the fact that when procuring from offshore suppliers, there is no requirement placed on the foreign company to include the costs of retention monies in their tender price. This immediately gives them a cost advantage that rolls up into the price they quote, helping them undercut local suppliers. It also means that while a local supplier has every incentive not to cut corners and to make every effort to make sure their performance is up to standard so they get the retention monies paid to them, that kind of incentive isn’t there for foreign suppliers who typically require payment before shipping. It also means that there is little opportunity for redress when a piece of equipment made offshore arrives and is found to be substandard. In fact, where initial price is seen as the major driver of procurement and where there are no perceived

consequences, there is also the opportunity for an offshore procurer who realizes that they can trim the price they submit by omitting to do something which may not be readily apparent if inspected before shipment. An example of this could be that they paint an item of plant in the open rather than in a climate-controlled environment, or only provide one coat instead of two of paint, or even undertake sandblasting to a standard lower than specified. These kinds of practices can reduce their costs and hence the price they submit, and with no consequences such as forfeiting retention monies, there is no incentive against cutting corners. These risks are widely understood and many governments around the world put in place mechanisms to address them, such as requiring a completion bond from foreign suppliers to projects funded with public money. In practice this has the same effect as retention monies in providing an incentive to ensure corners are not cut and that foreign suppliers are not advantaged over local suppliers. The issue becomes more complex where a government or government entity appoints a prime contractor

No requirement placed on the foreign company to include the costs of retention monies in their tender price. NZ MANUFACTURER • May 2013 Issue • Features Opinion Manufacturing Profiles Letters to the Editor Politics of Manufacturing Trade Fair World Diary of Events World Market Report Q/A Export News 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

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REAR VIEW

By Nick Inskip,

HERA

who does not require a cascading of completion bonds to foreign suppliers. In this case, however, the foreign supplier is immediately advantaged and any pretence of a level playing field disappears. It can be argued that the prime contractor accepts the risk, so there is no risk to government, but that isn’t the point. The point is that by omission of the requirement to cascade completion bonds to foreign suppliers, local industry is immediately discriminated against. While this is probably not deliberate, it is a reality, as is the risk that with no consequences for a foreign supplier, they will cut corners which might not show up until the item supplied, is a few years old and unlike a local supplier, they have no local reputation at risk. So we need Government and related entities to act now to flatten out the pitch and make sure the game is fair for local industry.

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The Future of Manufacturing The Marine Industry Preventative Maintenance Workshop Tools

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Editorial material to be sent to : Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: words@xtra.co.nz Tel: 06 870 9029 Fax: 06 878 8150

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

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NZ Manufacturer April 2013

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