Manufacturers' Monthly March 2016

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

MARCH 2016

Dismissal

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NMW 2016 Sydney prepares for this year’s event

Industrial Design ‘Factory in a box’ edges closer to reality

Compressors Desalination project’s energy efficient choice

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Managing Director: John Murphy

Inside 4

Comment

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National Manufacturing Week

Editor: Matt McDonald Ph: (02) 8484 0645 Fax: (02) 8484 0722 matthew.mcdonald@primecreative.com.au

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Exports & Imports

Journalist: Brent Balinski Ph: (02) 8484 0680 Fax: (02) 8484 0722 brent.balinski@primecreative.com.au

12 Management

Editor-at-Large: Alan Johnson Ph: (02) 8484 0725 alan.johnson@primecreative.com.au

16 Motors & Drives

Publisher: Martin Sinclair martin.sinclair@primecreative.com.au Managing Editor: Branko Miletic Ph: (02) 8484 0976 Fax: (02) 8484 0722 branko.miletic@primecreative.com.au

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MARCH 2016

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18 Industrial Design 21 Compressors 22 IT@MM

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24 What’s New 26 Heat Exchangers manmonthly.com.au

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

MARCH 2016

Copyright Manufacturers’ Monthly is owned by Prime Creative Media and published by John Murphy. All material in Manufacturers’ Monthly is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information, Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published.

The opinions expressed in Australian Mining are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated.

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Dismissal

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Industrial wire brushes

Articles All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.

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© Copyright Prime Creative Media, 2016 NMW 2016 Sydney prepares for this year’s event

Industrial Design ‘Factory in a box’ edges closer to reality

Compressors Desalination project’s energy efficient choice

Behind the cover

C

M

Y

There is an old saying that a happy workforce CM is a productive workforce, and that’s as true MY today as it was 100 years ago.

CY However, there are always going to be a few bad apples in the workforce who are CMY never happy and often go out of their way to K be disruptive, despite management’s best endeavours. In such cases, dismissal is sometimes the only option.

But employers need to tread carefully.

Sacking people is a serious business which should not be taken lightly. Quite rightly, there are laws surrounding unfair dismissal.

So in those cases where sacking is fair and justified, what is the best way go about it? (See p.12)

Trusted by generations of engineers all over Australia and New Zealand

www.dixbro.co.nz Manufacturers’ Monthly MARCH 2016 3

Comment

BRANKO MILETIC – Managing Editor

We deserve better than obfuscation and deceit

“

HUNDREDS of thousands of new jobs are being created in the aged care and health service sectors that would offset the loss of jobs in the manufacturing sector and through automation,” Renee Leon, the secretary for the federal Department of Employment, said in a recent Sydney Morning Herald story.

So is this what PM Malcolm Turnbull had in mind when he bandied the term ‘focus on innovation’ around to anyone that had a camera or a microphone?

After slashing funding to the CSIRO and offering little more than platitudes laced with disinterest in the fate of our wobbly steel industry, the shine is starting to wear off for Turnbull and his merry band of conservative media warriors.

Recent lukewarm polls aside, it seems there are also some on the government’s own backbench that are starting to grumble about the inconsistencies between Turnbull’s words and deeds.

And why wouldn’t they. Like a growing chorus of Coalition voters, manufacturers have learned there is a big difference between what is good for the economy in the long term and a sugar hit designed to fill the morning’s papers.

Sure we need to increase investment in health and aged care - a quick glance at Australia’s future demographics will attest to that. But why do this at the expense of our manufacturers?

However, surely as a country of now 24 million people, we can

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look a bit further and build an economy with value-added industries and not just fill the gaps with paper maché?

“Over the next five years there will be tens of thousands, probably hundreds of thousands, of jobs created in the caring sectors around community services and aged care and health care because we have got an ageing population and also the national disability insurance scheme coming through...we ought to be pumping many more people into that workforce than we currently are,” Leon said.

So how is this in line with Malcolm Turnbull’s much-vaunted Innovation Agenda? How does this help us become the ‘smart country’? How will this help Australia compete in what is very much a global STEM-driven innovation boom?

The simple answer is that it won’t. What it may do is bloat out a sector that will be literally bursting at the seams with thousands of low-paying health service jobs that will end up being filled by 457 Visa holders who inevitably will work under conditions and pay rates that many locals would shun.

What about helping manufacturing grow and prosper, or is that too much of a lofty idea for Australia’s policy-free ruling clique?

To echo Michael Spaeth writing in The Michigan Daily: “It’s the knowledge economy, stupid.” branko.miletic@primecreative.com.au

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Comment No excuse to not buy local paper

By Senator Kim Carr

T

HE difficulties faced by Australian Paper’s recycling mill in the La Trobe Valley and the steel mills in Whyalla and the Illawarra are a reminder of the basic principle that should guide government procurement policy.

Good procurement choices should always seek to achieve value for money – which can’t be decided solely by comparing purchase prices.

Any sensible procurement decision will take into account the impact of the decision on communities and the broader economy. Governments must consider whether their purchasing choices will build industrial capabilities.

It is not a matter of protecting Australian producers from competition, but of enabling them to become more competitive.

The returns from good, value-for-

money procurement decisions, in terms of new jobs, an enhanced skills base for the economy and increased tax revenue, will vastly outweigh any gain from a decision based on price alone.

But this hasn’t been the Turnbull Government’s approach to the La Trobe Valley paper mill.

Under the ICT Sustainability Plan, implemented by the former Labor Government in 2010, 100 per cent of Government-purchased, general office paper was intended to be from recycled content by 1 July last year.

The plan did not specify that this must be Australian paper, but the policy prompted Australian Paper to build at $90 million de-inking and recycling plant at its Maryvale paper mill in the La Trobe Valley.

The plant represented a six-fold increase in Australia’s capacity to

recycle paper, and created 1000 jobs.

The Turnbull Government, however, did not renew the ICT Sustainability Plan on 31 July 2015, and 16 of the 22 largest Australian Government departments now buy imported paper.

There is no excuse for the Government not buying Australian when a local manufacturer provides the best value for money, and that is certainly the case with Australian Paper’s investment at Maryvale.

The Government’s role in the paper industry, and the fate of the Maryvale plant with its 1000 jobs and 6000 flow-on jobs, are now the subject of a Senate inquiry.

There is also a Senate inquiry under way into the future of Australia’s embattled steel industry, which will examine crucial issues such as dumping and government procurement.

Both inquiries were instituted by Labor with the support of crossbench senators, and are due to report in June.

State governments in Victoria and South Australia have shown they understand the strategic importance of maintaining an Australian steel industry by undertaking to work with the industry on local content requirements.

As in its attitude to the paper industry, however, the Turnbull Government has yet to demonstrate that it understands why government procurement decisions matter.

[Senator Kim Carr is the Shadow Minister for Higher Education, Research, Innovation and Industry]

Developing manufacturing’s emerging managers

By Innes Willox

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ITH the Government’s National Innovation and Science Agenda looking to tackle the changes needed to fuel an innovative nation, Australia’s management practices have again come under the spotlight.

Ai Group has long drawn attention to Australia’s broad challenge to lift its enterprise leadership capability in order to enhance productivity, innovation and sustainability. In our statement released last June, Addressing Enterprise Leadership in Australia, we highlighted Australia’s falling ranking in leadership and management practices over recent years and identified barriers and necessary actions.

6 MARCH 2016 Manufacturers’ Monthly

Now, after a year-long project funded by the Victorian Department of Education’s Manufacturing Skills and Training Taskforce, we’ve produced a Guide to implementing innovative management development in the manufacturing sector.

The project implemented an innovative approach to the development of emerging/frontline managers.

Three components were integral to the success of the pilot program, which engaged 16 participating companies, and these are key principles that could be adopted by more employers, in other programs, and working with other RTOs: • Developing management skills within an industry context, and solving

workplace-related issues; • Bringing together a group of participants from locally-based companies in order to develop networks of first line managers across companies; and • Facilitating the learning via innovative methodology supported through a partnership with an education provider to deliver a qualification, but driven by the needs of individuals and their companies.

The resulting program can be tailored to map specifically to BSB42015 Certificate IV in Leadership and Management, however it is designed with the flexibility to be delivered independently of a nationally recognised qualification.

The program utilises a constellation of methods including action learning, adaptive leadership principles and a framework for regular coaching and selfguided reflection. Core to its success are individualised work-based projects driven by company needs that serve a dual role of building both individual capability as well as delivering on tangible organisational improvements and providing opportunities for collaboration.

We believe this innovative management development program for emerging managers in manufacturing needs to be promoted to both manufacturers and RTOs. The most effective approach would involve a number of networked

companies, having identified internal candidates for valuable management development, approaching RTOs and requesting the use of this program methodology.

As such, we encourage you to examine the Guide and consider how this approach might benefit your business and Australian manufacturing. A full report of the project is also available.

Contact Anne Younger, Ai Group’s General Manager, Education and Training (03 9867 0172) to discuss.

[Innes Willox is CEO of the Australian Industry Group] manmonthly.com.au

Exhibitions& CONFERENCES NMW ready to roll into Sydney Registration is now open for National Manufacturing Week 2016 (May 11 - 13, Sydney), Australia’s largest, longest-running manufacturing industry event.

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HIS year, NMW Australia’s most comprehensive showcase of innovation, information and inspiration will be co-locating with the Inside 3D Printing Conference and Expo and the Safety First Conference and Expo.

NMW had a major impact on industry when last held in Sydney two years ago: attracting some 6,000 visitors (nearly half being senior executives or engineers) who rated the event highly. In fact, an independent survey found that eight out of ten NMW visitors left with plans for investing in technologies or services they’d seen at the event.

NMW 2016 will have a new focus on emerging opportunities through co-location with Inside 3D Printing Conference & Expo, the Sydney edition of the world’s largest 3D printing event. Inside 3D Printing will give industry a first-hand look at how 3D printing is revolutionising industry.

The Safety First Conference & Expo is a one-stop safety event, bringing together a showcase of safety solutions alongside a packed conference program, with industry leaders sharing the latest research and

NMW attracted some 6,000 visitors the last time it was held in Sydney. strategies for improving workplace safety. Among keynote speakers is Cristian Sylvestre, MD of Safe Start, who will be bringing information from the world of neuroscience that could change workplace health and safety. New research, says Cristian, is revealing a new aspect to safety: unconscious errors arise from inattention, and safety can be improved through alertness. Cristian will be sharing his insights in a Premium Forum session at Safety First.

NMW 2016 will also feature a Seminar Theatre offering free access to industry experts presenting strategies and case studies on vital R&D and digital topics. The agenda will include ‘how tos’ for diversifying into other markets, collaboration and innovation, as well as productivity gains through supply chain efficiencies, digital manufacturing and much more.

Due to popular demand, NMW will feature an expanded demonstration program, delivering the opportunity to evaluate new technologies in action.

“One of the strengths of NMW’s seminar and demonstrations programs is that, in addition to giving attendees free access to new ideas, the programs spark the opportunity to see, touch and try new technologies,” commented Event Director, John Gorton.

Registration for NMW is free for trade visitors, and is now open at the event’s website.

National Manufacturing Week 02 9422 2955 www.nationalmanufacturingweek.com.au

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Manufacturers’ Monthly MARCH 2016 7

Exports& IMPORTS The Middle East open for exports The Middle East offers huge potential for Australian exporters, particularly as we look to expand and diversify our export markets away from Asia. Andrew Watson writes.

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HE Middle East is often viewed with some trepidation by the Australian business community, with the language and distinct cultural differences often creating uncertainty among Australian exporters.

However, like any other export market, understanding where demand exists, learning about any potential risks and taking the appropriate steps to success, can ensure more Australian SME exporters, including manufacturers, are able to take advantage of the growth opportunities in this exciting region.

Strategic export destination The Middle East is strategically located between Europe and Asia, meaning historically it has been well placed to act as a trading hub for Australian companies operating there. This has meant that Australia has developed strong relationships with a number of markets in the Middle East.

The United Arab Emirates and Saudi Arabia are our strongest export partners in the region, and were ranked 11th and 18th respectively as the most important export markets for Australian businesses in the recent Australian International Business Survey 2015.

Strong industry demand Australia’s key export industries, including mining, agriculture and services, all have strong markets in the Middle East, providing a number of exciting opportunities for Australian SME exporters.

The mining sector in the Middle East is growing, as many of the Gulf countries look to diversify their economies away from oil. Investment is also being made in other sectors, such as mining and infrastructure.

This will create opportunities for Australian mining equipment, technology and services companies, and 8 MARCH 2016 Manufacturers’ Monthly

Dubai Marina, UAE. companies involved in the infrastructure supply chain.

There is also a strong and growing market for Australian agricultural exports to the Middle East. For example, Australian lamb exports to the Middle East increased by 7 per cent in 2014 and beef exports to the region were worth AU$390 million, according to figures from Meat and Livestock Australia. Other strong export opportunities exist for grains, such as barley and wheat, and canola.

Education is a key services export market for the region, with a number of Australian institutions already having a presence in the Middle East.

This is likely to grow as the region looks to up-skill and diversify its labour force away from oil. Tourism is also growing, with the number of flights between the UAE and Australia, for example, having increased rapidly in recent years to support this growth.

Overcome export challenges The Middle East has some distinct differences to doing business compared to Australia.

Understanding how these differences could impact your business

and where any risks may lie is crucial before entering any markets in the region.

It is important to be aware of cross-cultural differences when doing business in the Middle East to avoid making a mistake that could damage a potential partnership.

For example, the culture of the Middle East tends to be much more flexible and relaxed when it comes to time and schedules than Western culture, so be aware that meetings and negotiations may not progress as quickly as in Australia.

Australian businesses also need to be aware of their legal standing when operating in the region.

Research, plan, prepare There are a range of steps that Australian SMEs looking to export to the Middle East can take to help make their transition as easy as possible.

One of the most important tips for any SME exporter is to do their research. Any cultural barriers can be overcome by conducting careful and comprehensive research prior to entering the market.

Exporters should read widely, talk to peers who have already entered

the Middle East and engage professional advisers that have experience of operating in the region.

When planning market entry, it’s important to get all paperwork in order.

The Australia Arab Chamber of Commerce and Industry (AACCI) is the peak national association for trade and investment between Australia and the Arab League countries.

AACCI certifies all export documentation for Australian exporters, which is a prerequisite for exporting to the Middle East. It also holds networking events and organises trade missions for Australian SMEs who wish to learn more about the region before making a decision to export.

A strong personal relationship is key to doing business successfully in the Middle East. This requires committing significant time and resources to investing in building relationships before entering the market.

This will likely involve conducting a number of visits to get to know potential customers, partners and suppliers before entering into a formal relationship.

For Australian SMEs that choose to service their Middle East market remotely, it is also important to have a good relationship with distributors.

Leverage the opportunities Australia is well-placed to meet growing demand in the Middle East in a range of industries.

However, being aware of the potential difficulties and risks around entering the Middle East will help ensure Australian SME exporters are well-positioned to leverage the export opportunities available in this region.

[Andrew Watson is Executive Director, Export Finance at the Export Finance & Insurance Corporation (Efic)] Efic 1800 093 724 www.efic.gov.au manmonthly.com.au

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Exports& IMPORTS Opportunities abound all over Asia The recent China FTA is very good news for certain manufacturers, while others might find better returns in other Asian countries. Alan Johnson reports.

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HE China-Australia Free Trade Agreement (ChAFTA), which came into force on January 1 this year, is great news for a wide range of manufacturers, who will see more than 86 per cent of Australia’s goods exported to China entering duty free (worth more than $90bn), as well as the reduction of tariffs on billion of dollars worth of other Australian exports.

Readers involved in consumer goods, advanced technology and equipment, meat, dairy, wine, seafood, fruit and vegetables, processed foods, vitamins and health products will be looking to grow their exports to China.

With its population of 1.4 billion people and a rapidly rising middle class, China presents enormous opportunities for Australian businesses well into the future.

Already connecting to Chinese consumers are vitamin supplements manufacturer Blackmores and meat exporter Sanger Australia. Each has signed agreements with JD.com to sell their products on China’s largest online shopping website.

However, according to Sara Cheng, Senior Manager, China Practice, before manufacturers celebrate this exciting opportunity, there are a few things they must bear in mind to leverage this opportunity to grow their export-to-China business.

“There is a saying about China’s consumer goods market: ‘Brand is more important than product, and price is more important than quality’,” she told Manufacturers’ Monthly.

“This summarises the characteristics of two market segments in China: The upper market which judges products by brand and the low end and mass market which is most price sensitive. “ She pointed out that as a high cost country, Australia can rarely compete with China on product price. “We have to focus on brand building and product differentiation to tap into the upper or middle-upper markets in China.”

“However, given the fact that over 95 per cent Australian businesses are SMEs, Australian exporters do not enjoy the luxury to spend big on brand building in a huge and unfamiliar Chinese market.”

Cheng describes most of Australian SMEs’ marketing investment in China as sand dropping into a vast ocean which ends up with no or little profit.

“Considering Beijing and Shanghai each has a population of over 20 million, Australian exporters need to have realistic expectations and should

10 MARCH 2016 Manufacturers’ Monthly

start with one city/region and commit all necessary resources to win the battle in that target city/region,” she said.

And when it comes to marketing, she advises Australian companies to never leave the marketing to their Chinese business partner.

“Established Chinese distributors/ agents may be competent in sales with their existing sales network and market experiences, but they are often not willing to invest in building someone else’s brand or incapable to conduct effective marketing.”

Instead Cheng said Australian exporters need to leverage Chinese business partners’ local experiences and knowledge, develop a clear marketing strategy and work closely with Chinese business partners to build the brand and market the products in China.

According to Austrade, it’s vital Australian companies choose the right business partner to avoid commercial disputes. This includes fully understanding the company, its history, structure and background, as well as the key individuals involved.

It’s a similar story with intellectual property rights (IP). Although China is now a signatory to most major international IP agreements and has a legislative framework broadly in line with international norms, Australian companies need to be cautious of the potential risks around IP infringement.

China operates a first-to-file system meaning just that - the first person to register a trademark in China becomes the legal owner.

Consequently, one of the most common IP risks is ‘Trademark squatting’. If an Australian company finds this has happened there are options available to recover their brand but these are often lengthy and expensive, with no guarantee of success.

Austrade strongly recommends that Australian companies considering manufacturing in or exporting to China register their trademarks in both English and Chinese as early as possible. Registering transliterations of trademarks should also be considered.

ASEAN region One area manufacturers should take note of, especially those in the automotive industry, is the ASEAN region for opportunities to enter the

global value chains of Asia’s fast-growing vehicle manufacturers.

South East Asia is becoming a global automotive hub due to the region’s strong economic growth and rising consumer class. According to the latest Economist Intelligence Unit’s ASEAN Automotive report, car sales are projected to rise from 3.6 million to 5.3 million over the next five years.

Thailand is ASEAN’s largest automotive manufacturing base, producing nearly two million vehicles in 2014. Australia exported vehicles and parts to Thailand were worth around $31.5m in the same year.

According to Stuart Charity, Executive Director of the Australian Automotive Aftermarket Association, Australian automotive aftermarket products, especially parts and accessories for off-road vehicles, are well-recognised in Thailand as premium products.

“There are some very good sales, partnership, distribution and investment opportunities for Australian automotive component manufacturers there,” Charity told Manufacturers’ Monthly.

Indonesia is another opportunity for Australian manufacturers. With 1.2 million vehicles sold in 2014, Indonesia is ASEAN’s largest automotive sales market.

The country’s strong domestic car sales are creating demand for aftermarket products such as roof racks, tinted windows, custom wheels and incar entertainment.

The use of 4WDs is also growing at double-digit rates, offering substantial opportunities for aftermarket suppliers catering to this market. manmonthly.com.au

Shannon Leahy, Austrade’s Trade Commissioner in Jakarta, said there is an increasing demand in Indonesia across a broad spectrum of automotive parts and components.

“These include opportunities in driveline and engine cooling systems, fan belts, electronics and shock absorbers,” Leahy told Manufacturers’ Monthly.

“Indonesia’s automotive supply chain growth will also provide opportunities for companies that wish to invest through a joint venture supply chain manufacturing model.”

India India is another country manufacturers should keep on their radar, especially those in the automotive industry.

India’s car industry is in the process of major expansion plans especially with the country’s ‘New Fuel Efficiency standards’ which will govern Indian car manufacturers from 2017; and the Indian Government’s implementation of the National Electric Mobility Mission Plan 2020, which includes the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME India) scheme.

The Indian auto industry and Government of India have prepared a new automotive mission

plan for 2016-26, which aims to make India among the top three automakers in the world.

The industry is projected to account for over 12 per cent of India’s GDP, up from the current level of 7 per cent, and 45 per cent of its industrial output.

According to Nicola Watkinson, Austrade’s Senior Trade and Investment Commissioner for South Asia, with India fast becoming a major automotive hub, Indian companies are looking for partners to help build their global competitiveness.

“Australia is well placed to assist the Indian automotive industry in enhancing their global competitiveness, and provides significant opportunities for Australian organisations looking to expand operations, especially as Australia has high-quality research institutions, specialist research and problem solving skills and strong capability in future vehicle technologies,” Watkinson told Manufacturers’ Monthly.

However Ian Metherall, CEO of Silo Bags, cautions Australian manufacturers that doing business in India can be difficult.

“New exporters have to understand that India is definitely a challenge, and need to meet that challenge by having deep pockets and lots of patience,” he said.

He said it’s important companies design their business plans for the market they’re entering.

“We found the Indian market has similarities with many other under-developed countries while differing from markets in developed countries. But there’s a very fine line here.”

Metherall said business for his company’s silo bags, which are used as a safe and economical way to store grain right across India, is growing rapidly.

“But India is so totally different from anywhere else in the world that it’s hard to extrapolate lessons learnt here to other markets,” he said.

However, he regards potential in the Indian market as huge.

“There are opportunities throughout the country and throughout the region. But you have to work at it. Don’t expect overnight success,” he concluded.

Australian Business 1800 505 529 www.australianbusiness.com.au Australian Automotive Aftermarket Association 03 9545 3333 www.aaaa.com.au Austrade 13 28 78 www.austrade.gov.au

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Manufacturers’ Monthly MARCH 2016 11

Management To sack or not to sack?

IR and HR issues are some of the most complex areas of running a company today, but many manufacturers continue to treat them as secondary matters. Alan Johnson reports.

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HERE is an old saying that a happy workforce is a productive workforce, and that’s as true today as it was 100 years ago.

However, there are always going to be a few bad apples in the workforce who are never happy and often go out of their way to be disruptive, despite management’s best endeavours.

While some employers and managers think it’s OK to simply sack someone after a couple of warnings, Mark Goodsell, NSW Director of the Australian Industry Group (Ai Group) warns that is not necessarily the case, pointing to a constant stream of new rulings on unfair dismissal which manufacturers should be aware of.

He warns that just relying on articles in the media for up to date information on IR and HR issues is an easy trap for manufacturers to fall into.

“The problem is all the details of the case are rarely included in the article,” he told Manufacturers’ Monthly.

“For example, just recently there has been a spate of cases on whether it’s a sackable offence to tell the boss to “f__k off”, or not.

Goodsell explained that there are cases on both sides, because they are based on the individual facts.

“Manufacturers must be very cautious about reading a case in the media, such as an employee did something and that resulted in them being dismissed in a defensible way, or resulted in them being dismissed then getting their job back,” he said.

Goodsell said it is very dangerous to project a media article as a general rule on whether that kind of behaviour leads to something you can sack someone for or not sack someone.

“The basic principles are still the same. Fair Work Australia judges look at all the circumstances of the dismissal including whether someone was given a prior warning that their behaviour was not acceptable, and

12 MARCH 2016 Manufacturers’ Monthly

whether other people would have got away with that behaviour in similar circumstances without sanction,” he said.

He said these general principals against unfair dismissal are far more useful than making a list of what an employer can or can’t get away with on the basis of a particular case.

“When judges make their decisions, they have a lot of facts before them that are not always reported in the media,” he said.

Goodsell warned that there is a tendency in the media to seize on one particular aspect such as swearing or stealing and draw a general principle on which side of the line that particular behaviour is.

“It’s very difficult to do that and

it’s particularly dangerous to assume that an isolated case puts a behaviour on one side of the sackable line or the other,” Goodsell said.

Formalising warnings Goodsell said one common problem in the area of unfair dismissal and discipline issues is for companies and managers not to formalise the early stages of the discipline or performance management process.

“For example, if someone is not doing what they are told, or not doing what is expected of them, the first few conversations about that are often very informal and not recorded anywhere,” he said.

“Often managers take the view that a quick chat will fix the problem,

Manufacturers need to keep up-to-date with IR and HR rulings, especially regarding unfair dismissals. which in many cases does. However, if it doesn’t fix the problem, the manager might need to prove he/she had that conversation at some stage.”

Goodsell explained that there are two things managers need to do very early in the piece.

“One, they need to have a record, which can be a simple diary note that they spoke to the person on the issue on such a day. Alternatively they should speak to the person with a witness present, who can corroborate that the conversation happened,” he said.

“Secondly, it is very important manmonthly.com.au

when managers are talking to someone about their performance or behaviour (and might want to reserve the right to dismiss them later on if it continues) that they let them know that could be the consequence.

“It needs to done far earlier than most people think.”

In many cases, he said, employees have not realised that their actions, often minor to them, could lead to them being sacked.

Goodsell admitted that sometimes managers might feel they are over-egging the pudding by pointing out that a continuation of this behaviour could be something they could be sacked about.

“But a lot of cases have fallen over because companies didn’t make it clear earlier enough in the piece, clearly, politely and calmly, that one of the consequences of continuing to do this is the company might not be able to employ them anymore. And making sure there is a little note in the diary that this was made clear,” he said.

“Managers might feel they are being harsh, but in reality they are being fair. But they should do it in an informing way, not in a threatening way.”

He said it’s important that that person knows if the problem continues they could be sacked.

“It is in their interest and yours

that that’s made clear, and not just at the last warning stage,” he said.

Downsizing Despite what some employees might think, Goodsell said the decision by employers to downsize a workforce is rarely taken lightly.

“It is not always a finite decision taken at a single point in time. It often builds up as financial information comes available and options are discussed,” he said.

However, he warned that companies can get themselves into problems when they think that if they tell their workers that it is even on the cards, they will get pessimistic and will lose their motivation, productivity will fall and will become a self-fulfilling prophecy.

“There is some truth in that, but companies shouldn’t leave it too late,” he said.

“Companies have had to stay their hand on redundancies because they haven’t properly talked to people about it and given them a proper opportunity to discuss other options.”

Goodsell said the amount of time depends on the circumstances but suggests it normally should be weeks, rather than months.

“I have seen companies give a year and a half notice, but really it’s a judgment managers must make about their relationship with their workers,” he said.

“However, managers need to be aware that if they don’t consult and leave it to the last minute and present the decision as a fait accompli then they run the risk of breaching their consultation obligations.”

Goodsell said companies need to leave enough time and space for a proper discussion of alternatives.

“It can be embarrassing if employees come up with viable alternatives that managers didn’t.

Or they might not have realised that the employees were willing to work in lower-paid jobs in another part of the factory.”

Bullying Goodsell warned that bullying does often exist in the workforce and is an issue that can cause anguish and tragedy (not just for employees) if not acted upon.

He said there are serious misconceptions, at all levels of employment and within all types of companies, about what is and what isn’t bullying.

“Bullying is a legitimate workplace HR issue and needs to be properly managed,” he said.

However Goodsell warned that because there has been so much publicity, a lot of workplace conflicts that are not bullying attract the label of bullying because it’s a powerful label to attach to them.

“Companies should really make

sure that their management and their staff fully understand what bullying is, and what it is not,” he said.

“An employee being upset by a decision that their boss made, properly and with proper business motivation, might be a natural reaction but is probably not bullying.”

He explained that bullying is repeated behaviour that is unwelcome and unfair.

“Unfortunately there are a lot of single instances and legitimate but tense interpersonal relationships in the workplace that attract the label of bullying when they are not.”

He said it is important manufacturers have policies in place so everyone knows how to deal with bullying; and educate people about how their behaviour in the workplace can affect other people unfairly.

“Some people just don’t know.

What passed as management techniques before can now be classified as bullying,” he said.

“People who have those values often don’t understand that those techniques are no longer acceptable.”

Understanding, having policies and educating staff are key to keeping bullying in perspective and managing it properly.

Ai Group 1300 556 677 www.aigroup.com.au

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Motors & DRIVES Explosion-proof motors SIEMENS has announced that Simotics XP 1MB1 motors have been approved for use with Sinamics converters in potentially explosive atmospheres.

The motor series is now approved for both mains and converter-fed operation thanks to an extension to the EC Type Examination Certificate. The Sizer engineering tool for Siemens drives can help determine the operating data of the motors used with the approved Sinamics converters. Energy-efficient, reliable converter-fed motor operation is possible in an output range of 0.09 to 200 kW. Motors operating in potentially explosive environments such as chemical and petrochemical, or oil and gas industries have to comply with IEC EN 60079 standards designed to protect human life, machines and the environment. These motors are available in protection types Ex nA, Ex tb and Ex tc for use in zones 2, 21 and 22.

Used in combination with Sinamics converters, the motors form a pre-tested and ideally coordinated Integrated Drive System (IDS) with users benefitting from minimal installation costs, high availability and economical plant operation.

Particularly suited for the chemical and petrochemical industries, the explosion-proof motors are also used in oil and gas, woodworking, plastics processing, and agriculture environments.

The motors are certified in compliance with the European Directive 94/9/EC (ATEX), IECEx and EAC requirements.

Siemens 1300 651 280 w3.siemens.com

The motor series is now approved for both mains and converter-fed operation.

AC-DC front-end modules Suitable for applications up to 22 kW, NORD inverters for distributed drive control can now also be operated via mobile devices.

Intelligent, adaptive drive control NORD DRIVESYSTEMS offers smart control solutions for synchronous and induction motors. The SK 200E frequency inverter series is included in their product range.

Featuring an integrated positioning function, the highest overload capability and broadest performance range (0.25 kW to 22 kW), these units are leading the field of electronics for distributed drive control.

They are very flexible, especially in large-scale installations with a centralized automation concept: normally controlled via fieldbus or Industrial Ethernet, they can be instantly disconnected via a switch, e.g. for maintenance purposes.

16 MARCH 2016 Manufacturers’ Monthly

The inverter-integrated PLC then takes over and executes tasks like positioning. In case of an unintentional, sudden disruption of communication with a higher-level control system, an SK 200E is able to keep crucial process stages running in order to limit production losses.

The built-in PLC enables drive-related applications to be completely implemented in the drive – including logical sequences, which are conventionally handled by a fullfledged machine controller.

NORD Drivesystems 1300 006 673 www4.nord.com

VICOR Corporation has announced an addition to its new family of high density PFM AC-DC front-end modules in the rugged VIA package that offers cooling performance and versatility in converter mounting.

Featuring a universal AC input range (85 – 264 VAC), power factor correction, and a fully isolated 24VDC or 48VDC output, and delivering 400W of isolated, regulated, DC output power at efficiencies up to 93%, these new modules provide power density of 127 W/ in3 (8 W/cm3) and best-in-class performance in a diminutive, 9mm thin VIA package.

The new units are ideally suited for use in a broad range of industrial, process control, telecommunications, office equipment, test and measurement, LED lighting and other “off-line” applications.

These new units integrate a full range of front-end functions required by contemporary AC lineoperated power systems - transient and inrush current protection; input power factor correction;

AC front-end modules provide up to 400W of isolated 24 or 48VDC power in a versatile, thermally adept package. input to output isolation; and a regulated SELV (Safety Extra Low Voltage) DC output - and meet international safety and regulatory agency standards for isolation, conducted emissions, power factor correction, and susceptibility to AC line transients, flicker, interruptions and surges.

VIA package configurations are available for both on-board mounting and chassis mounting and units are available in two operating temperature ranges.

Vicor Corporation www.vicorpower.com manmonthly.com.au

Small gearmotor

Laser Profile Scanner Non-contact 2D laser scanning for dimensions of surfaces, objects and scenes

Versitron® Series Rockwell Hardness Tester DCmax small gearmotor.

THE DC-max motor is a new “bang for your buck” motor offering the same high powered rare earth magnets and patented Maxon rhombic winding as the company’s premium motor range, only it is packaged in a cost effective housing.

Mixing technologies in this way gives the unique advantage to the pro duct designer to focus a gearmotor’s strengths where they are needed in the application. The high motor speed and high gear reduction requires the gearhead to act as

an efficient transmission and this is only achieved through precision machining and quality materials that the GPX gearhead offers.

The advantage with this new mix and match approach to gearmotor selection being that essentially, the mechatronic equipment designer can allocate costs where needed for the device.

Maxon Motor Australia 02 9457 7477 www.maxonmotor.com.au

Electronic overload relays for motor protection SCHNEIDER Electric has released the TeSys LR9D electronic thermal overload relay which provides advanced, flexible, and reliable protection for motors, improving both equipment life and cost savings.

The relays are suitable for use across a wide range of applications, including pumping, HVAC, hoisting, material working and packaging.

Their versatility is thanks to features such as a The electronic overload selectable trip class (5, 10, 20, 30), for setting the relays are compliant with desired level of protection; and a 5:1 adjustment range, IEC 60947-4-1 certification fitting a wide range of applications from 0.1 A to 110 A. standards.

They are self-powered and therefore require no external power supply. In addition, their close-couple configuration helps reduce installation time and their compact size saves space in your control panel.

By incorporating multiple functionalities in a single space-saving design, the relays simplify control architecture as well as making it simple to select and stock motor protection devices.

Schneider Electric 1300 369 233 www.schneider-electric.com.au

manmonthly.com.au

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Enquiry@bestech.com.au Manufacturers’ Monthly MARCH 2016 17

IndustrialDESIGN Digitisation, desktops

and developing new businesses The way things are designed and made is being shaken up by new materials and greater connectivity. Brent Balinski spoke to Gian Paolo Bassi about this and a lot more.

Design for digital cities Connectivity is changing and shrinking the world. Manufacturing isn’t immune, and software companies are responding by trying to make things as smooth as possible across communication channels.

“People think globally today, and they will do so even more [in future],” Dassault Systemes SolidWorks CEO Gian Paolo Bassi told Manufacturers’ Monthly.

“And our customers today - the best customers we have, the most innovative ones, just work like that.”

Available in 14 languages and with over 3 million customers, Bassi’s company receives feedback from a wide audience and pays close attention to its needs.

Right now, he sees similarities between the “uberisation” of our lives and the demands from the (global) industrial community.

Comparing the creation of a worldwide marketplace for manufacturers to expectations from Amazon or Airbnb, companies want transparency and to be able to easily define their own parameters when looking for suppliers.

“You want to make it as easy to create, to manufacture anything as it is to buy a book or to take a vacation nowadays,” he said.

Bassi’s company took a step in this direction last year, announcing SolidWorks Manufacturing Network (there are, at the time of writing, no Australian participants). Exalead (which, like SolidWorks, has Velizy, France-based Dassault Systemes as its parent company) also designs software to suit this need.

18 MARCH 2016 Manufacturers’ Monthly

“We have technologies that are going to be more and more embedded in the design phase and can tell you ‘you are designing this jobs, but are you sure you want to design and produce it yourself?’” Bassi explained.

“Why don’t you use this one, by the way, down the road?”

Other trends among users that are driving what Dassault/SolidWorks are offering include additive manufacturing of more and more materials.

During SolidWorks World 2016, the company announced a product incorporating PCB design (using PCB 3D printing company Nano Dimension as a case study) and presented on the rise of “plastronics”.

This year, for example, Voxel8 and Nano Dimension will both begin selling printers able to create in conductive plastics. The expansion in printable materials poses a challenge to CAD companies.

Another trend influencing both industries and the software businesses that service them is the abundance of data, and how this can be made useful.

Citing Dassault’s Virtual Singapore project (scheduled to be complete in two years), Bassi said the digitisation of more environments would take away a lot of guesswork.

Singapore’s “digital twin city” will see sophisticated analytics guiding design and future development.

“They want to know how many people live where, how many people move across what streets, how many bus stations are where, how many cars are where at any time of the day...” said Bassi.

“Then they can look at the analytics and say ‘there’s a bottleneck here

Dassault Systemes SolidWorks CEO Gian Paolo Bassi.

- we need to create another way or a larger lane’.”

“The best way to plan for the city of the future is to know what to plan and how to plan. This can only come from the analytics that come from the full digitalisation of your environment.”

The desktop will survive Bassi’s company is managing its own shifts in terms of demands for connectivity.

Many of its users have grown up with and love a product installed, run and storing on the desktop. Some older users are skeptical of the idea of design in the cloud for the sake of it.

As he did in his presentation, Bassi pointed out that the company was happy to continue providing a desktop version of its product as long as users kept investing in it.

“We are not going to replace the desktop generation with the online generation because it’s fashionable,” he said, with many competitors offering a “subscription only” model. They would service the desktop generation “as long as needed”.

Acknowledging that the future at some point would be purely online, Bassi said his company had to keep

three generations on customer happy: the desktop, connected (online storage on a database rather than computer files) and online (pay-as-you-go) generations.

“It’s like an automotive company, right?” he said, adding that while it was inevitable practically all vehicles would one day be electric, established carmakers would not switch to producing solely electric vehicles right away.

“So today there is no major automotive company that can afford to not go electric. None. Toyota, BMW, Mercedes: they all have hybrid and electric cars,” he said.

As newer CAD companies - for example Onshape - could purely offer online, pay-as-you-go software, new car companies could purely offer electric cars.

As well as the Mechanical CAD suite, SolidWorks has released cloud products, starting two years ago with Industrial Designer and Conceptual Designer (the first SW applications to run on Dassault’s 3DEXPERIENCE platform). It announced another at SWW 2016 with Xdesign, a browserbased collaborative product to be released in beta form later this year and also running on Dassault’s platform.

“Do you want to rent a car or to manmonthly.com.au

lease the car or to own a car? There are options in the automotive industry,” he said, adding that start-ups - who might be cash-strapped and keen to minimise capital expense were generally the keenest on online products.

“Why can we not have the same options for software if you want that?”

Director of Professional Channels AP South, who will oversee the program here when it begins.

Tan said he was optimistic Australia would adopt the program enthusiastically when it is rolled out.

Australia’s capacity for producing start-ups is sometimes maligned.

Also announced at the event was a new Apps For Kids program, to be released this year in North America.

A product to nudge those aged 4 - 14 towards a lifelong love of STEM disciplines, the apps aim to take a doodle or a picture and turn this into a 3D printable file.

Get them hooked early on Bassi was also keen to talk about the company’s new start-up initiative, SolidWorks for Entrepreneurs, launched in July last year.

Qualifying early-stage businesses get access to all of SolidWorks’ products for $US200 (with 80 per cent of the non-refundable entry fee going to the Rwanda High School For Girls scholarship program.) They must also be deemed worthy by a selection panel and participate in marketing events.

The program is so far only available to entrepreneurs in North America, but there are plans to bring it to Australia “after Q2, I suspect,” said Benjamin Tan, the company’s

You want to make it as easy to create, to manufacture anything as it is to buy a book or to take a vacation nowadays – Gian Paolo Bassi However, by one of Dassault’s metrics, we’re doing better than some.

According to the company, last year almost 60,000 new licences of SolidWorks were sold worldwide. In Australia, “almost half” of all new licenses were to new customers, said Tan. “There’s a lot of budding companies out there, in our part of the world especially, which are forming,” he added.

Along the way, a child will hopefully pick up a few things about design and engineering principles and want to learn more.

Time will tell if this does something to eventually narrow the gap between the market need for STEM graduates and the number produced.

However, it seems to make good sense in lengthening a pipeline of customers - from ages 4 - 14, to high

schoolers and university students, to start-ups and larger firms - who will use and develop some sort of familiarity with and loyalty towards SolidWorks’ programs.

“That’s why we sponsor every possible maker lab, every possible incubator… Because this is where the companies of the future come from,” Bassi explained of the investment in the new entrepreneurs program and other initiatives “And of course, very close to this way of thinking is education, where we invest massively. We are in 82 per cent of the top 200 educational institutions in the world.

“82 per cent teach with SolidWorks and, importantly, use SolidWorks.

Including MIT. They use SolidWorks in their research labs. It’s the software of choice for the inventor of the future, as I like to say. So education, incubators - it is a thread, you know?”

Manufacturers’ Monthly attended SolidWorks World 2016 as a guest of Dassault Systemes.

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Manufacturers’ Monthly MARCH 2016 19

IndustrialDESIGN ‘Factory in a box’ edges closer to reality Nano Dimension’s DragonFly 2020 and a number of other industrial-level 3D printers due for release this year may well be game changers. Brent Balinski investigates.

Keeping IP safe There’s a growing interest in a small Israeli 3D printing business, which formed in 2012 - roughly the year that the world started to get curious about 3D printing.

Nano Dimension debuted its DragonFly 2020 unit - able to print multi-layer industrial-quality PCBs out of conductive and dielectric inks (mimicking FR4 insulation) - last November. It is set to begin selling its first units roughly in November this year.

It was the best-performing stock on the Tel Aviv stock exchange in 2015, according to Reuters, despite not having sold a printer.

And there was curiosity in it this week at Solidworks World 2016 in Dallas, where Nano Dimension’s sports car-like machine was on display.

“They’ve put a factory in a box, for electronics design,” Lou Feinstein, Manager of Portfolio Management: High Technology, I.O.T and Mechatronics products at Solidworks, told Manufacturers’ Monthly.

“We’ve always talked about putting a factory in a box, but there are all these technical challenges. We’re starting to see these go away. You can print plastics; you can print cables and wires. Now you can print circuit boards.”

The machine’s purpose is rapid prototyping PCBs, allowing electronics manufacturers to keep iterations (and IP) in-house. Gerber files are transformed, bottom-up, into prototypes in two micron layers, with an accuracy level of 0.01mm.

The margin for error is tiny.

“It’s important to say for this environment, this isn’t ‘print an object and if there’s a little bit of roughness on one of the sides, then you sand it down and everything’s fine,’” Nano Dimension co-founder and chief business officer, Simon Fried, told Manufacturers’ Monthly.

“A PCB is binary: it either works or it doesn’t. And if you print something and 20 MARCH 2016 Manufacturers’ Monthly

will be in-house at first, but a contract manufacturing partnership with Flex (formerly Flextronics) has been announced if demand picks up.

Fried would not give specifics on the price of the industrial-grade units, but said this would compare to the higherquality production machines from Stratasys.

Interesting times

The price to print the materials in this item was just $US 30.

there’s an error in your print somewhere, then your print is maybe something pretty, but it has no use.”

What’s the frequency?

The invention uses a nanoparticle synthesis technology which had been developed at the Hebrew University of Jerusalem for roughly a decade, explained Fried.

The company has two R&D labs; one is dedicated to silver nanoparticle ink, the other to dielectric nano-inks.

Of 50 employees, 45 are in R&D, across a split of mechatronics, nanochemistry and software.

Its headquarters are in Ness Ziona Science Park in an area of unusually strong inkjet expertise: its neighbours include HP Indigo, Stratasys and Orbotech.

Besides being able to briskly create the guts of prototype electronics products in house, other claimed benefits of the DragonFly include replacing environmentally damaging chemical etching processes, and the possibility of very high levels of geometric complexity within printed boards. Flexible objects are also possible.

The properties of what can be made will only get more sophisticated, too, said Fried.

“The Rogers Corporation in the United States have a lot of technology around insulation where instead of using fibreglass and epoxy they start turning to ceramics, things that are able to cope with very, very high speed circuitry,” he said.

“So we’ve started to enlarge the range of frequencies that our materials can support. And we’ve made it most of the way up to also offer solutions that are FR4 plus, medium/high frequency, and we’re touching the low-end of the Teflon and ceramic-type materials.”

“Telecom guys are really interested in very high frequencies. They’re companies that are really helping us to test things that we don’t know to test, and we don’t have the equipment to test 100 megahertz, 100 gigahertz environments.”

Nano inks are currently available from the company. The price to print the pictured item was given as “around $US30” in materials.

Initial, small-scale deliveries of printers to industrial partners are scheduled for late in 2016. Production

The hype among the public around 3D printing has arguably died down lately, but in terms of what it can achieve, the possibilities have never seemed so vast.

This year will probably see longawaited technology described as “game-changing” available from HP and Carbon3D, as well as shipping beginning at Voxel8 (another company printing in conductive inks).

Nowadays there might not be so many articles written predicting “a 3D printer in every home”, or as much fuss made about 3D printed figurines or other tchotchkes as in 2012 or thereabouts.

However, 3D printing is now far more interesting than when it was exciting.

“As with anything that’s new and perhaps over-hyped, all kinds of things happen. And it’s quite similar to the year 2000 when all you had to do was register a domain name and you could be a millionaire, because you were doing internet. 3D went through a similar cycle,” said Fried.

“If you don’t have a meaningful, end-use application, it’s a toy. And toys are great, but they’re not actually going to change the world,” he continued, gesturing towards a nearby giveaway stress-ball shaped as a hat.

“They might make a hat, for example, but there are other ways to make hats. And - no offence to Texas but hats aren’t that exciting.”

Manufacturers’ Monthly attended SolidWorks World 2016 as a guest of Dassault Systemes. manmonthly.com.au

Compressors Desalination project opts for energy efficient compressor system

I

n constructing the Victorian Desalination Project, AquaSure chose to install four Kaeser DSD 238 SFC series frequency controlled rotary screw compressors to meet the plants’ requirements for an energy efficient source of compressed air.

In June 2007, the Victorian Government announced its intentions to construct a desalination plant as part of its Water Plan, which would create a drought-proof supply of water for Melbourne and Geelong.

The contract to finance, design, construct, maintain and operate the Victorian Desalination Project (VDP) was awarded in July 2009 to the AquaSure consortium.

Located near Wonthaggi, construction commenced in September 2009 and was completed in 2012 by AquaSure and its contractors, which included design and construction contractors Thiess Degrémont and operations and maintenance contractors Degrémont Thiess Services (Watersure).

The VDP comprises: a reverse osmosis plant, marine structures which include two underground tunnels located 15 metres below the seabed, a two-way underground 84km water transfer pipeline and 87km underground power supply.

With a production capacity of up to 150 billion litres of water a year, the VDP provides a rainfall-independent source of water to communities throughout Melbourne, South Gippsland and Westernport.

Reverse osmosis is the desalination technology used at the VDP to turn seawater into freshwater.

It is also the most energy efficient method of desalination. This is not the only energy efficient measure implemented at the VDP. AquaSure introduced a number of innovative systems to ensure the plant operates as energy efficiently as possible.

This included: incorporating systems within the plant to minimise power consumption during the reverse manmonthly.com.au

Cut material and energy costs for your business

The VDP utilises 4 Kaeser DSD 238 SFC series frequency controlled rotary screw compressors, 4 air receivers and 4 instrument air treatment skids which include preand post- duplex filter sets as well as a desiccant dryer.

osmosis processes and the plant’s compact modular design which reduces pipework and eliminates inefficient energy use.

The compressed air system was another area where AquaSure opted for equipment that possessed energy reducing features such as variable speed drives and high efficiency motors.

Compressed air is used to power a number of processes within the VDP. One of the main requirements for compressed air on the plant however, is to actuate a number of the 17,000 plus automated valves.

To maximise energy efficiency while meeting these requirements, AquaSure chose to install a Kaeser turn-key solution consisting of: four Kaeser DSD 238 SFC series frequency controlled rotary screw compressors, four air receivers along with four instrument air treatment skids which include pre- and postduplex filter sets as well as a desiccant dryer.

Manufactured in Germany, the DSD SFC series frequency controlled rotary screw compressor packages from Kaeser provide the ultimate energy efficient solution.

Every Kaeser rotary screw compressor is equipped with a large, efficient screw compressor block featuring high performance Sigma Profile rotors. Powered by a direct

drive system, the screw compressor blocks in the DSD series compressors eliminate the transmission losses associated with gear driven systems.

This significantly increases reliability and service life. The benefits speak for themselves; efficient power transmission, optimal power consumption, reduced servicing and downtime costs along with significant energy savings.

In addition, further and considerable energy savings are achieved with the inclusion of the Sigma frequency control (SFC) module.

With the SFC module (variable speed drive) air delivery can be matched to actual air demand, according to the required system pressure, by continuously adjusting drive motor speed within its specified control range. This can lead to significant savings, as only the required compressed air at any one time is produced, with a 1 bar reduction in pressure amounting to a 7 per cent reduction in energy consumption.

Ready for action in times of drought, the Victorian Desalination Project can produce and supply up to 150 billion litres of water a year to Melbourne and Geelong.

Kaeser 1800 640 611 www.kaeser.com.au

Resource Assessment Grants 2015 –16 Grants of up to $10,000 are available for small to medium sized businesses to conduct a resource assessment of their operations.

Conducting an assessment can identify thousands of dollars in materials, electricity and energy savings.

Application closing dates 4pm, Thursday 31 March 2016 Final date for Energy Assessment applications to be submitted.

4pm, Friday 13 May 2016 Final date for Materials Assessment, or combined Materials and Energy Assessment applications to be submitted.

For more information visit www.sustainability.vic.gov.au Email grants.enquiries@sustainability.vic.gov.au Call 1300 363 744

ZO630113

Manufacturers’ Monthly MARCH 2016 21

TechnologyIT@MM Keeping your files safe Manufacturers who think their computers will never get hacked need to think again. Alan Johnson reports.

T

HE hacking of computers of the infamous on-line dating agency Ashley Madison last year made the headlines worldwide, but the idea that the ‘bad people’ of this world only target high profile companies and government agencies is nonsense.

According to the experts in the IT security industry, computer hacking happens far more often than most people think. It just doesn’t get into the media, with no company keen to admit they have been hacked for obvious reasons.

David Higgins, ANZ Regional Director for WatchGuard Technologies, said this belief among manufacturers (particularly smaller companies) that they could never be a target for hackers is a huge mistake.

“We never read about smaller companies being hacked, but it happens all the time,” told Manufacturers’ Monthly.

And according to Higgins the hacking often materialises through downloading innocuous files and PDFs. “There are still many malforming PDF files circulating, as well as Word and Excel macros with malicious capabilities,” he said.

He said they are generally the

22 MARCH 2016 Manufacturers’ Monthly

older ones, but they are still around, and people still fall for them.

“The problem is there are a lot of signatures out there to catch bad files, but eventually companies have to push some of the older ones off the system simply because they don’t have enough room for the newer ones in their system. The older ones can come around again, and even though we have seen them before, they can reinfest,” Higgins said.

He said it’s very easy for criminal organisations to get hold of legitimate email addresses, and to send a company an email which looks legitimate.

“It’s made to look like it is from someone you know. They might have hacked an organisation and got into their supplier database with email addresses and phone numbers. Then it’s easy for the hacker to form an email which looks like it came from the supplier,” he said.

“Not surprisingly, the manufacturer opens the file, especially as it might mention an invoice from the last shipment, for example. But it’s not an invoice, instead it takes you off to a website, downloads some code and you are hacked. This is very common practice.”

And once companies have been hacked, Higgins said it is too late.

And they often only find out much, much later.

He said these bad guys are not about making a song and dance about it, they want to fly under the radar to see what information they can gather.

“The more they can compromise the system, the more information they can gather,” he said.

Response planning Higgins advised manufacturers to put in place an instant response plan, similar to a fire drill, where everyone knows what to do in the event of an attack.

The first step, he said, is to have some sort of prevention in place, and a detection system in case your company is breached.

“Obviously it’s not as simple as unplugging the PC that has been affected,” he said.

He said manufacturers need to realise how much valuable information they have on their ERP systems.

“These systems have vital information on their customers and suppliers, plus their manufacturing, reordering and invoicing processes.

Manufacturers can be hacked and brought to their knees very quickly by not being able to access these systems,” he said.

“Manufacturers carry out fire drills, but I’m not sure how many know how to make sure they are a tough target and what to do when they are hacked.”

“There are risk management companies who are able to do that, however some manufacturers might say it’s too expensive, but I suggest it’s too expensive to be hacked and be off-line for days/weeks, as well.”

However Higgins said manufacturers must realise there is no such thing as 100 per cent protection.

“It can’t be had. But what they must do is put in a good quality security system.”

Protection strategies Higgins said a good starting point for manufacturers is the Australian Signals Directorate’s website (asd. gov.au) which highlights 36 steps companies should take to mitigate cyber attacks.

The site points out that at least 85 per cent of the targeted cyber intrusions that they respond to could have manmonthly.com.au

been prevented by following their top four mitigation strategies: • Use application whitelisting to help prevent malicious software and unapproved programs from running.

• Patch applications such as Java, PDF viewers, Flash, web browsers and Microsoft Office.

• Patch operating system vulnerabilities.

• Restrict administrative privileges to operating systems and applications based on user duties.

As well, Higgins said, it is vital to implement the critical security patches every time they are released; to protect the company’s vulnerabilities.

“Because it is these unpatched vulnerabilities that the hackers are taking advantage of; to be able to get access and control of a company’s computer system, and basically worm their way through a company’s network,” he said.

He said manufacturers also need to invest in a good quality firewall.

“Firewalls look at the packets of

information that come from the Internet. Some just respond with a simple yes no, but others can drill deeper and look at the data inside the email to see if it’s a hack or a virus and block accordingly,” he said.

“That’s on the inbound, but firewalls can also stop people going to insecure websites which are compromised or contain malicious advertising.”

Then if a company does get hacked, Higgins said, some firewalls have the ability to stop the malware attaching itself or calling to a particular command and control website by blocking access to that website.

“We can provide those layers of security all in one box, which is ideal for SMEs,” he said.

Higgins advised manufacturers to regularly patch their Windows products.

“For smaller manufacturers they should just tick the box so Windows is updated automatically,” he said.

“But for those who need to test the patch to ensure it doesn’t affect other

applications, they should ensure the patches are implemented within two days of those patches being released.

“It’s the same with updates for Adobe, Java and similar programs.”

He also recommended manufacturers run good quality anti-virus programs, with a different one on desktops and laptops to the program at the gateway.

“That way, manufacturers are increasing their chances of one of the programs catching any bad files attacking their system,” he said.

Cloud computing Regarding cloud computing, Higgins said there are no real differences when it comes to IT security.

“Manufacturers still need to have a firewall in front of their system sitting in the cloud,” he said.

“People seem to think cloud computing is different to having their IT systems in-house, in reality all it means is that instead of the data sitting in their office, it’s sitting somewhere else connected through the Internet.”

Higgins pointed out that in some ways data on the cloud is far safer and secure than in many SMEs offices.

“These cloud computing data centres have multiple power back-ups, multiple levels of physical security, and multiple security connections in case anything does go down,” he said.

“However, the need to secure the communication to it within an office or somewhere up in the cloud is the same.”

He said users in the office, connecting to the data in the cloud, should still be using a VPN (Virtual Private Network).

“Valuable traffic on there should never be in open or clear text, it should a VPN and the data between company offices, those people out in the field and their cloud system should always be encrypted,” he concluded.

WatchGuard Technologies 1800 685 275 www.wgrd.com.au

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Manufacturers’ Monthly MARCH 2016 23

What’sNew Handheld digital meters

IO-Link Master and Sensors

THE Keysight U1241C is a 4-digit IP 67-rated handheld digital meter designed to help technicians and industrial test engineers perform their work confidently and efficiently. The strong and solid U1240C Series handheld digital multimeters (DMMs) are robustly designed to perform in harsh working environments and can survive up to 3-metre drops. With up to 400 hours of battery life, the new DMM can work longer in any environment.

Key features of the Series include built-in LED flashlight illuminating the test area; compliance with test standards CAT III 1000 V/ CAT IV 600 V overvoltage protection.

Keysight meter logger software provides a comprehensive data logging experience when observing measurement over a period of time. The device is easily connected to the meter logger software running on a PC via Infrared (IR)-to-USB cable, or wirelessly and remotely with the optional Keysight Remote Link solution.

Keysight meter logger software provides users the flexibility and useful configuration to view their logged data in trend plot or The Keysight Mobile Meter table format. Once the measurements are recorded in the softallows iOS or Android based smart devices to connect. ware, users can easily transfer the logged data into various report formats with just a click of the button.

When using the U1115A remote logging display, the U1117A IR-to-Bluetooth adapter allows test measurements to be safely measured, viewed and logged with an extended range of up to 100 metres.

Measurement Innovation 08 9414 7800

THE new IO-Link master for the Allen-Bradley POINT I/O system and IO-Link enabled sensors from Rockwell Automation go beyond detecting machine problems to help enhance machine productivity. These enhanced sensors simplify configuration, monitor machine health, and communicate data and diagnostics in real time via the global IO-Link communication protocol.

Traditional sensors merely send information stating if they are on or off. If a sensor fails, users know only when an operation goes awry downstream. IO-Link-enabled sensors provide a continuous flow of diagnostic information from the production line, helping better predict maintenance needs.

The new sensors featuring embedded IO-Link act the same as standard I/O sensors until connected to a master. Once interfaced with an IO-Link master,

www.measurement.net.au

Communication between operator and sensors means more useful information for decision-making. users can access advanced data and configuration capabilities while using the same three-wire cables.

The company is the only company that offers controllers, an IO-Link master and IO-Link sensors that, when applied as a complete system, provide simplified integration plus enhanced features and functionality.

Rockwell Automatiwon 03 9757 1111 www.rockwellautomation.com

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24 MARCH 2016 Manufacturers’ Monthly

04/02/2016 11:00:34 AM

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Brought to you by

Rugged Android tablet THE Handheld Group has released a new Android tablet, the ALGIZ RT7, described as a powerful, lightweight (650g) and ergonomic tablet designed for reliable performance in demanding environments.

The Algiz RT7, which runs Android 5.1.1 (Lollipop), is said to meet stringent MIL-STD810G US military standards for protection against drops, vibrations and extreme temperatures. Also it is IP65 rated, meaning it’s waterproof and fully sealed against sand and dust.

A Qualcomm MSM8916 (Snapdragon) chipset and 1.2 GHz quad-core processor power the tablet, which comes standard

with LTE data and voice capabilities as well as 802.11 b/g/n WLAN, BT Class 1 and Class 2, and NFC functionality.

It also features dual cameras (8-megapixel rear-facing and 2-megapixel front-facing), as well as dual SIM card slots.

The unit comes with a built-in accelerometer, gyroscope and e-compass and a standalone u-blox GPS receiver for navigation.

Designed for the mobile worker, the tablet also features a high-brightness 7-inch outdoor-viewable capacitive display Handheld Group 02 9888 1599 www.handheldgroup.com

Mobile computer HONEYWELL has released the Dolphin CT50 mobile computer designed to streamline operations and maximise worker efficiencies in transport and logistics, field service and warehouse environments.

Featuring a modern alltouch interface for scanintensive applications, the computer empowers workers to maximise efficiencies in missioncritical activities, including improving route efficiency, ensuring more accurate delivery windows, heightening the level of service to customers in the field

manmonthly.com.au

with real-time scheduling, and more effectively responding to customer requests.

Offering the flexibility to select either Windows Embedded 8.1 Handheld or Android 4.4 KitKat operating systems, the computer is said to offer the highest degree of future-proofing protection with a seamless upgrade path to the Windows 10 and Android 6.0 Marshmallow platforms.

This operating system versatility offers end users enhanced security and compatibility with other devices such as tablets

and personal computers.

The computer is the second launch in a series of mobile solutions built on the powerful Qualcomm Snapdragon 800 series processor.

Honeywell 03 9420 5555 www.honeywellaidc.com

Manufacturers’ Monthly MARCH 2016 25

HeatEXCHANGERS A Furphy worth believing Furphy Engineering, a company whose name has become part of the Australian lexicon, now has a new reason to feel unique. It is the only local manufacturer using laser welding to manufacture ATEX plate heat exchangers. Matthew McDonald writes.

D

URING World War I, water carts made by Shepparton-based Furphy Engineering were used to deliver water to Australian

troops.

Like today’s water coolers, the carts became places to meet and talk. Of course, talk has a habit of leading to gossip, so stories heard around the water carts came to be treated with scepticism. And you guessed it, they became known as ‘furphies’.

The rest is history.

Today, stainless steel tanks and vessels are Furphy Engineering’s main area of business. The company counts dairy companies, chemical companies, and breweries amongst its many and varied customers across Australia.

Manufacturers Monthly recently caught up Managing Director Adam Furphy (a fifth generation descendant of the company’s founder).

He explained that one of the standard features for many modern tanks and vessels, particularly those used in food and beverage applications, is what’s known as cavity plate, dimple plate or cooling jacket. ‘Dimple’ refers to the uniformly bumpy surface of the plate.

“It’s essentially an outer skin on the shell of the tank that is formed such that there’s a cavity between the outside of the tank and a second wrap of material and through that cavity glycol or cooling fluid can be run to cool the tank,” he said.

Alternatively a heating liquid can be used to heat the product inside the tank via the same process.

It provides a way for wine makers, dairy factories, brewers and so forth to keep their products at the right temperature to optimise their processes.

Furphy Engineering is the only company in Australia which uses a laser welding technique to manufacture Advanced Thermal EXchange (ATEX) dimple plate.

In the case of tanks and vessels, the ATEX Plates are described as single embossed whereby only the thinner outer skin of the plate is deformed when the welded plates are pressurized.

“That’s the way we’ve been doing the majority of our applications to date but recently we’ve become more interested in what we’d call double embossed ATEX applications,” said Furphy.

He explained that, unlike the single embossed material created for tanks and vessels, double embossed ATEX plates are dimpled on both sides and are therefore suitable for complete immersion

26 MARCH 2016 Manufacturers’ Monthly

A heat exchanger manufactured from ATEX plates. in the medium to be heated or cooled, doubling the heat exchange surface area. Plates can then be banked together using manifolds and tailored to fit in an existing installation, providing a highly efficient and customisable immersion plate heat exchanger.

According to Furphy, the applications for this are far reaching. “We’ve seen inquiries for regulating key product temperatures, keeping waste water below regulatory requirements; or simply cutting costs by turning waste heat into pre-heat,” he said.

“ATEX allows us to tailor solutions to an even greater range of these heat exchange problems that are everywhere in industry.”

The benefits According to Stephen Lawrence, an R&D Consultant for Furphy Engineering, heat exchangers manufactured using ATEX Plates are also useful from a thermally sensitive point of view. They lend themselves to use as falling film plates in chillers and evaporators which are particularly suitable for delicate products used in food and chemical industries.

“Making [those products] is difficult with tra-

ditional heat exchangers because you get a rather short dwell time which means you have to transfer a lot of heat from the product to the heat exchanger very quickly and thermally sensitive products like that struggle,” Lawrence told Manufacturers’ Monthly.

In contrast, using ATEX heat exchangers, the material flows down the outside of a long plate, allowing more time for it to perform the heat exchange.

“This, in turn, is more delicate on the product and gets the end result more effectively,” said Lawrence.

According to Furphy, the versatility of the technique is another advantage. “Any shape you can think of we can make in ATEX plate,” he said.

In addition, the heat exchangers are made with food grade stainless steel, and are easy to clean and maintain.

Furphy pointed out that laser welded dimple plate is currently much more widely used in Europe than in Australia. He sees a gap in the market which his company is now seeking to exploit.

He offered an explanation as to why Australia is lagging behind in this area.

“A large number of the applications we’ve seen relate to energy saving of some kind,” he said.

“That seems to me to be the real driving force behind the use of the products. Not all of it, but a significant feature.”

“The Europeans are more dialled into this because they’ve had a longer period of high energy prices.”

In contrast, he said, high energy prices and the need to reduce energy usage are relatively new to this country.

“By and large in Australia industry is still getting its head around what possibilities exist and what potential there is to reduce their energy costs utilising some of the waste heat streams that perhaps exist on their existing sites,” he said.

Pointing to the example of a northern Victorian laundry operation which was able to cut its water usage by 20 per cent and its gas bill by 14 per cent by installing an ATEX heat exchanger, Furphy said the savings are there for those who want them.

Sounds like a Furphy worth believing.

Furphy Engineering 03 5832 1469 www.furphys.com.au manmonthly.com.au

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