Manufacturers' Monthly April 2015

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

APRIL 2015

NATIONAL MANUFACTURING WEEK 26 – 29 May 2015

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

APRIL 2015

Frosty Boy tastes sweet success INSIDE >> 14

IT@MM ERP in the cloud

44

Manufacturing for Mining Solid prospects still exist

54

Welding Attractions of weld management systems

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Inside

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For daily news visit manmonthly.com.au

APRIL 2015

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Publisher: Martin Sinclair martin.sinclair@cirrusmedia.com.au

6 Editorial

Managing Editor: Kevin Gomez Ph: (02) 8484 0976 Fax: (02) 8484 0722 kevin.gomez@cirrusmedia.com.au

16

■ ‘Fairness’ and reform can go together

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

36

8 News & Analysis

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

■ Snapshot ■ Changes come to WTIA ■ Senator creates Farming and Manufacturing Party

Editor-at-Large: Alan Johnson Ph: (02) 8484 0725 alan.johnson@cirrusmedia.com.au Graphic Designer: Dave Ashley david.ashley@cirrusmedia.com.au

12 Comment

Production Co-ordinator: Mary Copland Ph: (02) 8484 0737 mary.copland@cirrusmedia.com.au

■ Can we regain an energy advantage?

NSW Sales: Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Ph: (02) 8011 3184 anthony.head@cirrusmedia.com.au QLD Sales: Sharon Amos PO Box 3136, Bracken Ridge, QLD 4017 Ph: (07) 3261 8857 Fax: (07) 3261 8347 Mobile: 0417 072 625 sharon.amos@cirrusmedia.com.au

14 IT@MM

36 Management

■ Keeping pace with change ■ Nine steps to ERP implementation success

■ Does manufacturing have a future?

16 Endeavour Awards

NSW, SA/NT & WA Sales: Cirrus Media Ph: (02) 8484 0868 anthony.head@cirrusmedia.com.au

■ A preview of this year’s nominations

32 Made in Australia

Published 11 times a year Subscriptions $140.00 per annum (inc GST) Overseas prices apply Ph: 1300 360 126

■ Frosty Boy’s future in Asia looks bright

34 Materials Handling Cirrus Media Tower 2, Level 3, 475 Victoria Avenue, Chatswood, NSW 2067, Australia Locked Bag 4700, Chatswood Delivery Centre, NSW 2067, Australia Ph: (02) 8484 0888 Fax: (02) 8484 0633 ABN 80 132 719 861 ISSN 0025-2530 www.cirrusmedia.com.au © Copyright Cirrus Media, 2015

■ Column mounted slewing jib crane ■ Confined space lifting solution

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

APRIL 2015

Average Net Distribution Period ending Sept ’14 18,688

58 NMW Preview ■ A roundup of what you can see at this year’s show

44 Manufacturing for Mining

61 What’s New

■ Solid prospects still exist in mining

■ Silicone tubing ■ Infrared pyrometer ■ Strain gauge measuring amplifier

48 Energy Management

62 The Last Word ■ Benchmarking ourselves against the best

Behind the cover

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■ The attractions of weld management systems ■ Portable TIG/stick welding machine ■ Air purifying respirator welding helmet

■ Chasing the tiger

■ Energy management and productivity ■ How to cut your power bills

■ Optimising crane safety and productivity MA 0 4 1 5 _ 0 0 3

38 Exporting

54 Welding

In not much over a decade, Australian dessert manufacturer Frosty Boy has increased exports from almost nothing to three-quarters of its business. What’s more, the company now sells into nearly 50 countries.

Last year Frosty Boy opened a new, purpose-built factory in Yatala. The facility covers 6,000 square metres and has double the capacity of the company’s previous plant.

Frosty Boy tastes The third site the company has occupied since the current owners picked up the sweet success company in 1999, its current output is the equivalent of two million serves of soft serve per day. It runs two shifts a day, five days a week.

It positions Frosty Boy to increase exports even further and take full advantage of the 2 0 1 5 - 0 4 - 0 2 T1 5 : 1 0 4 0 : 2 2 9 + 1 1 : 0 0 ‘Asian Century’.

INSIDE >>

Printed by Bluestar Print 83 Derby Street, Silverwater, NSW 2128 Ph: (02) 9748 3411

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IT@MM ERP in the cloud

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Manufacturing for Mining Solid prospects still exist

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Welding Attractions of weld management systems

Manufacturers’ Monthly APRIL 2015 5

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Comment

MATT McDONALD – Journalist

‘Fairness’ and reform can go together

E

NEXTISSUENEXTISSUE • Austech Preview • Heating and Air Conditioning • Automation & Robotics – Emerging Technologies • Management – Finance, Leasing & Rentals • IT@MM – Additive Manufacturing • Materials Handling – Conveyors & M A 0 4 1 5 _ 0 0 6 _ G WA 2 Loaders

ARLIER this month, the government received some friendly fire.

Nine peak business groups including representatives of the manufacturing sector released a statement expressing their concern at the slow pace of economic reform.

Evoking memories of great reformers of the past, those from the Hawke/Keating years and the Howard/Costello years, they said reform is always difficult. If Australia is to maintain its high standard of living, they said, today’s leaders need to show the same sort of courage as those reformers of the past.

The government promptly returned fire. Treasurer Joe Hockey responded by pointing out the obvious. Unlike business leaders, he said, the government has something called the Upper House to deal with. It did attempt to make the big changes in last year’s budget, but they didn’t get through the Senate. And this was a fair point. Will and political courage are nothing without the numbers.

This brings us to the real problem the government (and others, such as manufacturers, who agree with the need for change) are facing.

In their joint statement, the business groups complained about the Opposition’s continual focus on budget ‘fairness’.

- What 1 2they 0 1failed 5 - 0to3 mention - 3 1 T is 1 that 4 : 4the 8 :public 1 9 +agree 1 1 : 0 0 with Labor on this one. Accurate or not, the public percep-

tion is that the less well-off are being asked to carry most of the burden of economic reform. Australians saw all the changes – GP co-payments, increased university fees, tightening of the welfare system – and judged them unfair.

A lack of political courage isn’t the problem. The Government needs to recast itself as ‘fair’. It must convince voters it is not just attacking the low and middle income earners while ignoring big business and the wealthy.

The above-mentioned great reformers of the past managed to do this.

Yes, Hawke and Keating floated the dollar, cut tariffs, and decentralised industrial relations. But they also established the Prices and Incomes Accord – a key agreement between government and unions; and introduced compulsory superannuation.

And yes, Howard and Costello reformed the waterfront, reformed IR, and introduced a GST. But they also established a broad range of family benefits to soften the effects of moving from the existing highly-progressive tax system.

Of course, circumstances always change but the great reformers of the past have always managed to bring the electorate with them along the path to change.

Today’s business leaders should be praying the Abbott Government can do the same.

Matthew.McDonald@cirrusmedia.com.au

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Answers for industry.

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SnapSHOT AS IT stands, manufacturing workers have lower education levels than the workforce as a whole.

As the accompanying figures from the Australian Bureau of Statistics show, in 2013 just 17.1 per cent of workers from the manufacturing sector had attained a Bachelor Degree or higher, compared to 28.4 per cent of workers in the overall economy.

But this is set to change.

As we often hear, Australia’s manufacturing future lies not in high volume areas but in specialised products and advanced manufacturing techniques.

Testament to this change is the fact that Green Chemical Futures, a facility intended to facilitate collaboration and innovation in research and manufacturing recently opened at Monash University.

We can ofM MA 0 expect 4 1 5 _to0 see 0 0more _ SU the same in coming years.

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Source: ABS survey of education and work, 2013

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News&ANALYSIS Change comes to the Welding Technology Institute of Australia IN order to better meet the needs of its members, the Welding Technology Institute of Australia (WTIA) is currently going through a significant change program which will see an improvement in the scope and quality of its services.

At the centre of the program is a fundamental refocussing of the organisation’s culture to put members, individual and corporate, at the centre of all operations. In addition, after an extensive program of focus groups, the organisation has defined an overriding strategic objective: Australia First – onshoring welding and fabrication projects.

As well as a new and improved range of advisory services we have initiated a number of programs to improve the flow of technical information available from our extensive database of research and consulting projects.

M A 0Central 4 1 5 _to0this 0 0initiative _ T S U will be a new e-commerce platform and a

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WTIA wants to put its members first. projects. From trains, cars and bridges ‘Wikiwelding’ repository for technito LNG gas plants, mines and power cal data. generators welding plays a critical Welding technology touches many role in the Australian economy. parts of the manufacturing industry However, 1and2is0often 1 5 -the 0 unsung 3 - 2 6hero T 1 of 4 :some 0 3 : 3 3 + 1 1 : 0 the 0 current trend to send major construction fabrication offof our largest and most successful

shore is devastating our industry. No blame can be attached to asset owners and prime contractors who must find the best value they can. However, they must compare competitive tenders on an equal basis in order to make a fair comparison. In response Australian companies must invest in plant, people, technology and systems to ensure they are internationally competitive.

We have some of the most talented welders, technologist and engineers in the world but without the work they will quickly dissipate around the world. WTIA is committed to reversing this trend, growing our welding capability and ensuring we are globally competitive.

[John Burnett is WTIA President] WTIA 02 8748 0100 www.wtia.com.au

manmonthly.com.au

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In brief...

Govt releases Energy White Paper Releasing the Government’s Energy White Paper, Industry Minister Ian Macfarlane said the government wants to ensure Australians receive competitively priced and reliable energy supplies into the future. He said this can be best achieved by promoting competition in energy markets, increasing energy productivity and facilitating investment in energy resources development.

Popularity of Aussie food up The proportion of Australians over 14 who are more likely to buy food labelled ‘Made in Australia’ has risen to 88 per cent from 85 per cent two years ago, according to Roy Morgan Research. The survey also found that 6 per cent of Australians over 14 prefer food marked ‘Made in China’, compared to 5 per cent two years ago.

Pharmaceutical sector wants help The pharmaceutical industry will require government support if it is to recover from its recent poor performance and compete globally, according to Medicines Australia CEO Tim James. Latest figures from the ABS show Australian pharmaceutical exports declined by 18 per cent to $2.9 billion in 2014. Since 2012, when they peaked at around $4.3 billion, Australian pharmaceutical exports have declined by more than 30 per cent.

Old factory in Taree to re-open The former UGL factory in Taree will re-open. According to the Greater Taree City Council’s general manager Ron Posselt, this will create as many as 400 jobs.

He added that the new owner is a global business and the currently mothballed factory would be used for “heavy niche manufacturing”.

New facility opens at Monash Uni Green Chemical Futures, a facility intended to facilitate collaboration and innovation in research and manufacturing has opened at Monash University. Opening the building, Senator Scott Ryan, Parliamentary Secretary to the Minister for Education and Training, said the multilevel facility will enhance Australia’s research capabilities within the chemicals and plastics sector.

manmonthly.com.au

Senator creates Manufacturing and Farming Party INDEPENDENT Senator John Madigan has applied to register a new political party, citing a current lack of focus on the importance of manufacturing and farming in the national economy.

Madigan, who quit the DLP last September, said he was sick and tired of the major parties’ “spin and bullshit.” The name of his new party, said Madigan, reflected his major concerns since joining the Senate.

“Australia must again recognise that our farmers and manufacturers are the backbone of our economy,” The Australian reported him as saying.

“Without these two sectors, this country would grind to a halt.”

According to the application Madigan lodged with the Australian Electoral Commission, his party will focus on issues including truth in labelling and faulty/ non-compliant imported building products.

“People are frustrated about what’s going on in Canberra,” Madigan said.

“They are frustrated about the lack of focus and the leadership arguments and the sense of unreality that exists in Parliament. They are frustrated by the spin and bullshit.”

Madigan, a former blacksmith and boilermaker, is now the third cross-bencher since December to

Senator John Madigan defected from the DLP last September.

(Image: DLP) announce they will form their own party, following Jacqui Lambie and Nick Xenophon.

The Victorian Senator was also one of the Senators behind the Australian Manufacturing and Farming Program.

His maiden speech included the claim that, “A country is what a country makes. The great economies of the world have strong manufacturing sectors.”

What members of our manufacturing community thought about Johan Madigan’s move...

‘Ron’ Good on you, John.

The Liberals, Labor and Greens have all ignored (or are ignorant of) the value of manufacturing in maintaining a prosperous country.

Australia has been lucky because we’re selling our resource-rich dirt, which will only leave us with thousands of huge pits filled with contaminated water to hand on to our kids.

‘Pat’ Great that someone in the Australian Government understands the value to the nation of the manufacturing industry.

The UK Government is now trawling the world (including Australia) looking for potential manufacturers that wish to set up in the UK. Their government took its eye off the ball and lost most of their manufacturing industry and are now trying to get it back.

‘Sledge 56’ Yes, for too long we have allowed our “old” manufacturing industries to fester and die whilst not providing the incentives to allow “new” manufacturing to flourish.

We forget that China is resource rich too, as is Russia. They have barely tapped their resources whilst still have both old and new technologies in play or being developed.

We didn’t learn from the resources boom of the sixties and we haven’t learned this time either. To quote Forrest Gump – “Stupid is as stupid does” and that appears to be Aussie.

anymore; it’s illegal under WTO rules. This is why they won’t rebuild the manufacturing base.

Editor’s note: Comments are as received. Corrections are made to spelling and grammar.

What do you think?

Go to www.manmonthly. com.au and make a comment about this or any other issue.

‘Dino’ He’s got my vote already. The only way forward is home grown!

‘Dan Campbell’ Manufacturing is being destroyed by free- trade. The Government can’t put up tariffs

Manufacturers’ Monthly APRIL 2015 11

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Comment

INNES WILLOX – CEO Australian Industry Group

Can we regain an energy advantage?

Energy is an essential. For some, however, the availability and cost of energy can make the difference in deciding whether or not to invest in the first place. Innes Willox writes.

N

sale electricity prices have risen and fallen, propelled by the supplydemand balance – once tight, now very loose – and the brief carbon tax regime. But the dominating factor was and continues to be the enormous run up in network costs.

Tighter regulation of electricity networks is set to deliver benefits.

That growth was partly driven ity networks, agreed in 2012 after to growth. And the regulatory rules by forecasts of continuing demand campaigning by Ai Group and others, turned out to be broken, encouraggrowth, and partly by rules for is now finally set to deliver benefits. ing gold plating and the treatment of network regulation and reliability.

The regulator’s draft ruling on NSW state-owned networks as budgetary However, the forecasts were wrong networks would cut their revenue cash cows.

– understandably, but hopelessly, request by 30 per cent, lowering costs Unit electricity prices are therewith demand shrinking every year to all users. Queensland is likely to up strongly.

Manufacturers pay in 1 defiance 2 0 1 5of- repeatedly 0 1 3 - 2 2 5 Trebased 1 0 : 1 3 9 4 : 1 4fore 8 + 1 1 : 0 0 2 see similar cuts. Victoria may benefit twice as much for electricity now as projections for an imminent return less, since its more efficient privain 2004. And the same is now haptised networks did not raise their pening in gas, which is an essential prices as much in the first place. feedstock and energy source for On gas, we need pro-competitive many sectors of manufacturing.

The new Liquefied Natural Gas ex- reform of the gas market, sensible Surface Preparation Solutions port industry taking shape in Queens- regulation to safely open up onshore gas production in NSW and Victoria, land has brought benefits, but by linking Australia’s eastern gas market and national interest assessment of any future proposals to increase LNG to East Asia it has ensured that we export capacity. start to import East Asian gas prices All those changes will stanch the linked to oil. That has been expected damage. But is it possible for Austo triple wholesale gas prices from tralia to regain an energy advantage? historical levels of $3 a gigajoule to We still have vast resources – and $10 a gigajoule or more. those include uranium, wind and sunIt is also imposing intense transhine as well as fossil fuels. Any new sitional pressures on supply. The generation option is going to be more current collapse in global oil prices expensive than today’s depreciated may delay the gas price surge a little, old facilities. even as it batters the value and profBut with advances in energy techitability of the LNG exporters. But oil nology underway, particularly in solar will recover eventually – replacement Airless and Air Blast Cleaning and Peening Equipment and storage, and costs rising in many production can’t be justified at curComponent Cleaning and Degreasing Systems countries as they reform subsidies rent market prices – and the upward Full Range of Quality Abrasives and clean up their systems, Australia march of Australian gas prices will Quality Replacement Parts and Accessories could still aim for relative advantage. resume in earnest.

Service available for all makes and models To do so we will need to transcend So on energy costs, Australia has Australian Owned, Designed and Built Since 1928 the partisanship that has paralysed leapt towards the middle of the pack.

CONTACT US TODAY! Australian energy policy – and But there is hope. Energy efficiency, 19 / 257 Colchester Rd, Kilsyth, VIC, 3137 pursue improved workplace relations once a concern only for the most P.O. Box 51, Bayswater, VIC 3153 practices and productivity gains to intensive manufacturers, has become Tel: +61 3 9729 4333 Fax: +61 3 9720 4247 control excessive construction costs. mainstream as prices have risen.

Web: www.granowski.com.au E: wgmailbox@granowski.com.au www.aigroup.com.au Tighter regulation of electric-

OT so many years ago, cheap Australian energy was a drawcard for investment in metals, chemicals and more.

Australia had huge resources of coal and gas, much of which were stranded from global markets and sold at prices set by local supply and demand. We had relatively cheap systems to bring that energy to market. And demand grew like topsy, rising every year from Federation until 2009.

But since 2009 the picture has changed M A dramatically.

0 2 4 1 5 _ 0 0Electricity 0 _ GRA prices have increased steeply. Whole-

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TechnologyIT@MM Keeping pace with change By switching to ERP in the cloud, many manufacturers are transforming the way they operate, streamlining core business processes and enabling them to expand into new markets.

Mark Troselj writes.

N

OT long ago Australian manufacturers could achieve success and even dominance by simply producing a quality product at a fair price.

Today however, the world has changed dramatically, with globalisation, digitisation, ecommerce and customer empowerment forcing manufacturers to rethink the ingredients for success in fast moving global markets.

As modern manufacturers face rapidly changing markets and business channels, a key enabler of their success to adapt and keep up is the transformation of their ERP systems.

Turbosmart is a great example of a company that has made this transformation. The Australian automotive performance products manufacturer was using a number of basic onpremise software applications for accounting and ecommerce, as well as Excel spreadsheets, to manage its global manufacturing business – the company never had a clear picture of how its business was performing at any given time.

By switching to ERP in the cloud, Turbosmart has transformed the way it operates by streamlining core business processes, enabling it to expand into new markets, which it couldn’t have done before.

Without being encumbered by IT infrastructure, it now has the agility and flexibility to grow and explore new markets, knowing it can easily switch on vital business systems already geared to work in whatever market it enters into in the future.

Transforming ERP processes and IT systems, however, is no easy feat.

It requires taking the time to understand existing business processes and recreating them for better efficiency and optimal productivity.

It is critically important to make sure your business processes match those of the supporting IT system, of

14 APRIL 2015 Manufacturers’ Monthly

doing so, create the optimal goals for an ERP project, along with a realistic budget, software requirements and a timeline for completing it.

The ERP RFP

ERP in the cloud allows manufacturers to streamline business processes, without being encumbered by IT infrastructure. leveraging the best practices for each vertical industry and knowing what to look for in your ERP partner.

Transforming ERP is a major undertaking that requires understanding multiple business processes, how IT systems are affecting those processes, and then re-drawing them to get an efficient business operation.

Successful ERP transformation also requires aligning the capabilities of your prospective ERP application with your firm’s strategic initiatives.

If this isn’t done, there will be no ROI and a lot of wasted effort.

Steps to success There are a number of steps you need to take prior to selecting a new ERP application or upgrading your existing one: 1. Align ERP project goals to match business goals. Too often, a manufacturer focuses on getting a new ERP system rather than on defining what that system should do and how well it supports its processes.

That won’t lead to a good ERP se-

lection. Instead, take a deeper look at ERP processes and how they can be improved.

2. Evaluate business processes and map them out. Learn where they overlap, create redundant data, cause bottlenecks or waste, prevent good customer communications, or where they simply take longer than they should.

3. Learn the industry standard practices and compare them. Define the best practices for financial, CRM, logistics, supply chain and other business processes.

4. Develop a plan for how an organisation’s processes should operate and what is required of an ERP system in order to implement the better business practices.

By understanding how the business should be changed -- how data should flow, what department should be communicating which data to other departments, and where information can be centralised and integrated – organisations can redraw their processes to be more efficient and, in

When designing an RFP (Request For Proposal) for an ERP purchase, manufacturers should include all of the business and IT requirements, particularly: • All standard ERP elements – e.g. ERP, CRM, financials, supply chain and HR – built into the platform, with support included for other needs such as ecommerce, distribution, order management, inventory, manufac turing, business intelligence, and so on.

• Software that follows all industry best practices and is certified in necessary functionality, such as for various types of security, employment regulations and consumer privacy laws.

• Customisation capabilities and partner modules to expand processes to unique needs. Also consider how much specialisation is needed to customise the application. After all, there’s a big difference between needing a $100,000 a year Java developer and simply putting existing staff through basic training.

• In the cloud, a cloud-based platform enables customers to change and customise their applications to suit their own unique business processes.

The single code base that a cloudbased platform provides makes it easier to add capabilities, customise and integrate other applications.

It also ensures a standard set of processes and data enterprise-wide, and saves on IT maintenance costs.

[Mark Troselj is VP and GM of NetSuite Australia] NetSuite Australia 02 9464 6100 www.netsuite.com.au manmonthly.com.au

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Nine steps to ERP implementation success Manufacturers can benefit from ERP solutions that support them effectively when implementing their development and expansion strategies.

Craig Charlton writes.

I

T’S important for manufacturing companies today to be able to act quickly on business decisions.

Often the existing heterogeneous IT application mix proves to be a corset that does not allow changes. But the benefits of modern ERP systems with consolidated control of valueadded processes are only attractive for the industry if the implementation is as smooth as possible.

Companies should consider the following nine steps when planning the first phase of their ERP implementation phase.

Implementation pain analysis 1. DATA QUALITY Objective: Complete data migration from heterogeneous sources with simultaneous consolidation.

Pain: In order to implement the ERP workflows based on consistent and centralised data storage, a consolidation of data silos is required. Data migration tools for a wide range of different source formats provide a high degree of automation for the extraction, cleanup and upgrade of a company’s data. It is important to provide control functions to the business logic and alarms that simplifies the data migration without costly manual intervention.

2. TWO-TIER STRATEGY Objective: Simple harmonisation and investment protection.

Pain: Flexible usage models of an ERP system support companies in several ways. Individual business units can be equipped cheaper and faster with ERP solutions that are seamlessly integrated with existing environments, such as a central system at headquarters. A simplified deployment of an ERP system via a two-tier strategy also makes it easier to follow process, quality and compliance standards in offices around the world, support master data managemanmonthly.com.au

ment, and consolidate financial data across all subsidiaries.

3. SOFTWARE DEPLOYMENT Objective: Cost-oriented system implementation with a gradual introduction.

Pain: If there are options for the ERP solution to operate as an on-premise solution, hosted or managed service or a combination of all, the company will benefit from a unified landscape but yet have plenty of room for an expanding ERP strategy. This also allows introduction in phases.

4. INDUSTRY-SPECIFIC ADAPTION Objective: Consideration of individual needs at little additional cost.

Pain: The more consistent and wellthought-out an ERP solution is, the lower the effort required for program code changes and adaptations by specialists. ERP industry suites and module templates should provide about 85 percent of the required functionality out-of-the-box. If the software is also based on a flexible service-oriented architecture (SOA), detailed adjustments usually require only simple configurations with no need to delve into the software code.

5. INTEGRATION Objective: Seamless workflows with free choice of applications.

Pain: When an ERP system provides a combination of flexible SOA and integration components for an easy connectivity to third-party-solutions, companies face two benefits: existing solutions can be used and future extensions and special applications can be integrated without changes in the core ERP system. At the same time modern integration components ensure workflows remain consistent and software updates aren’t affected.

6. TRAINING AND EDUCATION Objective: Improved productivity with minimal training.

Pain: Two factors provide a high degree of acceptance and product-

ERP’s implementation phase is vital, it determines whether a project can be put into practice successfully and on budget. ivity from the beginning: a. A deep Microsoft Office integration allows users to work in familiar environments. b.Variable options simplify training. This includes not only traditional classroom training but also knowledge mentor platforms for the design of needs-based training. The latter offers interactive user manuals and structured knowledge tests.

7. INDUSTRY-SPECIFIC SUPPORT Objective: Accelerated implementation of Best Practices.

Pain: When ERP implementations are based on a structured methodology, including best practices, from the project start, companies can directly align their ERP processes for optimal performance. Industry experience is crucial, being able to deliver customized scenarios using existing practiceoriented templates.

8. USER EXPERIENCE Objective: Practice-oriented decisionmaking.

Pain: User conferences and an active user network support objective

decision making for a successful ERP strategy. The associated open exchange with the ERP vendor will ensure that the development of the ERP system will take into account the requirements of the industry, identify proven recipes for success and implement these faster.

9. MINIMISE RISK Objective: Predictable costs and customer-oriented implementation.

Pain: If an ERP vendor offers dedicated arrangements to take the success and risks of an ERP project together with its customers, a consistent, result-oriented project design and implementation is promoted. Socalled shared benefit programs give companies proof that the software provider is positioning itself as a responsible and trust-worthy partner.

[Craig Charlton is Senior Vice President for Asia Pacific with Epicor Software] Epicor Software 02 9927 6200 www.epicor.com Manufacturers’ Monthly APRIL 2015 15

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EndeavourAWARDS

Open to all manufacturers, Manufacturers’ Monthly’s Endeavour Awards program has evolved into the ideal vehicle for Australian manufacturers to highlight their recent successes and achievements.

PLATINUM SPONSOR

NOW in their 12th year, the Endeavour Awards are the only awards designed specifically for Australia’s manufacturing industry.

Proudly sponsored by BlueScope Steel, the awards are designed to celebrate Australian manufacturers’ achievements and inspire innovation and success.

This year we received entries from a whole host of manufacturers, large and small, including engineering companies, food processors and chemical companies.

Several entries in 2015 focused on companies transforming their businesses, by increasing productivity, innovation and competitiveness.

The Australian manufacturing industry is highly dynamic, with many unsung companies making a valuable contribution to Australia’s economic output, supporting local employment and training our future stars.

The Awards dinner itself will be held on Thursday 28 May, 2015 at the Crown Casino River Room in Melbourne.

This is manufacturing’s night of nights; a chance to meet colleagues and friends, do some networking and pat successful members of our industry on the back. Come and be part of the celebration.

Tickets are available for purchase at endeavourawards.com.au

16 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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EndeavourAWARDS

PROUDLY SPONSORED

BY BY PROUDLY SPONSORED

.

SAFETY SOLUTION OF THE YEAR

SPILL STATION AUSTRALIA

AUSTUBE MILLS

HYDROSAFE SELF-CONTAINED MOBILE EMERGENCY SAFETY SHOWER AND EYEWASH

ZERO HARM AND ZERO WASTE

Spill Station Australia began in 1983 with a primary focus on industrial absorbents and spill response kits. In those intervening years, the regulatory environment has matured to better reflect a growing understanding of the damage caused by chemical spills.

Spill Station’s range of solutions has also evolved in that time to provide solutions to the changing compliance requirements of Australian Industry and Government. Its shower and eyewash solution is truly mobile.

This trailer mounted, solar powered unit can be transported through all terrain whilst full of flushing water and be ready to use in under 5 minutes.

Austube Mills is the largest Australian manufacturer of the widest range of high quality structural steel pipe, tube and open profile sections that are third party certified (ACRS) to the highest AUS/ NZ Standards.

The company recently embarked on a safety journey, Goal Zero: Zero Harm and Zero Waste – an internal set of initiatives.

It implemented a combination of safety development programs that resulted from a business re-brand and the direction of its safety focus from independence, to interdependence. The range of revised Risk Management Tools starts with general hazard awareness tools (Personal Risk Assessment), escalating to structured tools (Job Safety Environmental Analysis and Work Safety Permits), up to critical risk tools (specific permits and forms) and then other specialised tools (plant risk assessment and working from home procedures).

ENERPAC

MACHINERY AUTOMATION & ROBOTICS

EVO SYSTEM

BLADESTOP

Enerpac is an international market leader in high-pressure hydraulics and a major supplier of high-pressure (700 bar) hydraulic equipment for 50 years.

The Enerpac EVO synchronous lifting system has helped save a transformer manufacturer hundreds of thousands of dollars in freight from New Zealand to India by safely and precisely weighing the electrical equipment to exactly verify that its tonnage came in under local shipping port weight limits. The EVO system is the evolutionary result of Enerpac’s 25 years of experience in specialised hydraulic engineering and lifting technology using digitally controlled hydraulics. Through an integrated HMI, all of the EVO system movements are managed from a central control position that displays live operation with real-time status updates for each lifting position.

Machinery Automation & Robotics (MAR) was founded in 1987 and is a leading designer and manufacturer of complete industrial automation solutions servicing large and small scale production-critical companies.

In collaboration with Meat & Livestock Australia, Machinery Automation & Robotics developed BladeStop. This mechanically stops a bandsaw blade when the unit senses that a person has come in contact with the blade.

Upon sensing contact with the operator, the blade stops operating within 15 milliseconds. This can make a huge difference between just having a small skin cut and an amputated finger.

Along with providing obvious social benefits, BladeStop is designed to also dramatically improve the overall sustainability of the meat processing industry.

EDITOR’S NOTE This is a selection from all the nominations received at the time of going to press. Once judging is complete, Finalists will be announced on www.manmonthly.com.au. They will also be individually notified.

18 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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COMPLETE SOLUTIONS FOR EFFECTIVE HEALTH & SAFETY.

SICK has an enviable record of working with partners to develop well proven innovative safe solutions that continue to push that competitive advantage. This is why we are proud to once again sponsor this years “Safety Scheme of the Year� Endeavour Awards program, which recognizes companies and individuals for their contributions to the Australian manufacturing industry.

For more information please visit www.sick.com.au or call 1300 405 807.

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EndeavourAWARDS

PROUDLY SPONSORED BY

ENVIRONMENTAL SOLUTION OF THE YEAR

TRI NATURE

PACCAR AUSTRALIA

PHOSPHATE FREE POWDER RANGE

ZERO WASTE TO LANDFILL

In 1989 the Tri Nature organisation was formed to bring natural solutions for industrial, household, and personal care to the marketplace. A world leader in natural technologies, it is one of the first companies in the world to introduce a phosphate free powder that actually worked.

The product range consists of three phosphate-free powders that find general and extensive use in the home – Alpha Plus Laundry Powder, Alpha Plus Prewash Soaker, and Citrus Dishwashing Powder.

The products help reduce all Tri Nature users’ impact on the environment. Combined with the absence of toxic caustic or chlorine compounds, they create much less load on effluent systems and waterways.

In addition, because the range is not ‘bulked’ out with useless builders and fillers, the dosage per wash is far less than most products.

THE CRIBBING AND MATTING CO DURA CRIB RANGE OF BLOCKING AND CRIBBING PRODUCTS The Cribbing and Matting Co’s lightweight, splinter-free, nonabsorbent and environmentally sustainable Dura Crib range of blocking and cribbing products have been engineered for maximum durability and tested under the guidance of AS1170.0:2002 and AS2498.3:1993 to ensure optimum safety and risk management when stabilising heavy loads.

The cribbing blocks work in a large range of applications including materials handling, ball and valve stabilisation, rail car maintenance, hi-rail stabilisation, automotive, fast stabilisation, extrication and more.

Made from 100 per cent recycled plastic, they are suitable for both active cribbing, where a person is working nearby, and for passive cribbing, where cribbing is used to keep material off the ground to allow a forklift to operate.

PACCAR Australia is an ISO14001 certified organisation committed to preventing pollution and minimising the impact of its operations on the environment.

In line with the global PACCAR goal of Zero Waste to Landfill, PACCAR Australia reduced the annual quantity of waste sent to landfill per truck from the Kenworth Truck manufacturing plant by 36.5% in 2014.

In 2013, PACCAR Australia disposed of 200kg of waste to Landfill per truck manufactured. In 2014, this was reduced to 127kg per truck with the best performance in August when only 84kg/truck was sent to Landfill.

To achieve this, PACCAR investigated waste avoidance, minimisation, reuse and recycling opportunities.

B.-D. FARM PARIS CREEK B.-d. Farm Paris Creek is one of Australia’s finest producers of award winning, certified organic dairy products such as milks, yogurts, Quarks, butter, soft cheeses and hard cheeses. The company uses biodynamic methods in its farming, and highly advanced, efficient equipment in its milk processing. A custom-designed renewable electricity generation system consisting of energy monitoring, industrial solar photovoltaic system, industrial evacuated tube solar collectors ensures maximised savings on fossil fuelled energy.

Last year a new, multi-million dollar project has started: fully integrated ESL aseptic filling line for fresh milk production and bottling and new aseptic yogurt filling line will be integrated and connected to the solar system doubling milk intake and production by 2016.

EDITOR’S NOTE This is a selection from all the nominations received at the time of going to press. Once judging is complete, Finalists will be announced on www.manmonthly.com.au. They will also be individually notified.

20 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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COMMITTED TO SUSTAINABLE PRODUCTIVITY We are so passionate about our environment and what it means for our future, that we are once again proud to be the major sponsor for the “Environmental Solutions of the Year” award at the 2015 Endeavour Awards.

- We wish all the finalist the best of luck!

Atlas Copco Compressors Australia Freecall 1800 023 469 www.atlascopco.com.au

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EndeavourAWARDS

PROUDLY SPONSORED BY

AUSTRALIAN INDUSTRIAL PRODUCT OF THE YEAR

EBM-PAPST A&NZ

ENGI-O

AGRICOOL SHED VENTILATION SYSTEM

THE TUBE-DYE ASSEMBLY MACHINE

Ebm-papst A&NZ Pty Ltd is a 25-year-old Australasianbased manufacturer and distributor of market leading fans and motors for ventilation, air conditioning, refrigeration and other air moving applications.

Through their head office in Melbourne and locations in Sydney and Auckland, they supply high efficiency fans and motors to OEMs and engineers who wish to upgrade their air movement systems.

Their AgriCool ventilation system was specifically developed for the Australian poultry market, and can achieve power savings of over 75 per cent, and significantly reducing running costs of broiler sheds.

The project was developed by a cross-functional, local team and is a good complete business development case from market survey to product placement.

Three products are offered: tunnel ventilation fan, stirrer fan and destratification fan; all developed and manufactured in Melbourne.

Established in 2012, Engi-O is the Australian-owned and located developer, manufacturer and exporter of aseptic filling technologies and advanced manufacturing services for agribusiness, food and pharmaceuticals.

It supplies international food producers and processors with engineering solutions that enable them to reduce post-harvest waste and assure food safety. Its Tube-Dye Assembly Machine automates the assembly of dye-filled tubes used in the dairy industry to detect ovulation in dairy cows.

It uses a 9-stage process to assemble the components, weld the tubing, fill it with the detector dye and deliver the completed tubes to a collection point.

Prior to the development of this machine, the assembly was time costly and inefficient.

In enabling this stage to be done automatically, with minimal operator involvement, the client can achieve eight times the output.

KONECRANES

AIR SPRINGS SUPPLY

KONECRANES CLX CHAIN HOIST

FIRESTONE AIROMATIC POLYACTUATORS

Konecranes is a world-leading group of Lifting Businesses offering lifting equipment and service that improve productivity in a wide variety of industries.

With more than 12,100 employees spanning 48 countries and 626 locations, the company has the resources, technology and determination to deliver on the promise of Lifting Business.

Its CLX, a new-generation electric chain hoist designed to meet and exceed the most rigorous reliability, safety and efficiency demands of diversified industrial users, is bringing greater overhead crane efficiency and reliability to Australia and New Zealand.

The CLX chain hoist incorporates a longer lifetime, with up to 1600 hours on most models with a full load, and a durable aluminium construction.

Konecranes CLX Chain Hoist is a reliable lifting device that increases performance and adds customer value through innovative technology and design, extended lifetime expectancy and high safety.

Air Springs Supply is a leading supplier of air springs and associated pneumatic technology for the manufacturing, transport and other industrial sectors.

Established for more than 20 years and representing many world leaders in its field, Air Springs is now an Australian distributor for Firestone, Continental Contitech, Pronal, and Ride Rite products.

The Firestone Airomatic Polyactuator range – the most compact pneumatic actuator range Air Springs Supply has ever introduced to Australia – is one of the latest and smallest members of a Firestone actuator and isolator family that includes Airstroke actuators and Airmount isolators in individual stroke capacities up to 40,000 kg and measuring up to a metre across.

Firestone developed the Airomatic Polyactuators to satisfy the need for very small spaces and light forces. These highly compact actuators have no pistons, rods or sliding seals, so friction, bending, scoring and wear are not a concern.

EDITOR’S NOTE This is a selection from all the nominations received at the time of going to press. Once judging is complete, Finalists will be announced on www.manmonthly.com.au. They will also be individually notified.

22 APRIL 2015 Manufacturers’ Monthly

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Supporting innovation and success BOC is the proud sponsor of the Australian Technology Application of the Year category in the 2015 Manufacturers’ Monthly Endeavour Awards.

It is fitting that we are supporting the category which recognises innovation in new technology applications, as it is something that is very close to our hearts at BOC and an important hallmark of our own business.

At BOC we aim to be admired for our people, who provide innovative and sustainable solutions that make a difference to the world. These awards

reflect and promote the same kind of spirit, and we acknowledge the terrific efforts of all entrants who share our passion to excel.

BOC wishes all finalists the very best of luck in the tenth annual Manufacturers’ Monthly Endeavour Awards and encourages all businesses, big and small, to strive for continuous improvement with commitment, courage and creativity.

BOC Limited

Riverside Corporate Park, 10 Julius Avenue, North Ryde, NSW 2113 Australia boc.com.au |131 262 BOC is a trading name of BOC Limited, a Member of The Linde Group. © BOC Limited 2015. MP15-0093|SG|MM|0315

facebook.com/bocsouthpacific

A Member of The Linde Group

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EndeavourAWARDS

PROUDLY SPONSORED

BY BY PROUDLY SPONSORED

GLOBAL INTEGRATION

KONECRANES

BATTLEFIELD SPORTS

KONECRANES SMARTON FOR MOLY-COP

SATR2

Konecranes is a world-leading group of Lifting Businesses offering lifting equipment and service that improve productivity in a wide variety of industries.

Moly-Cop Indonesia is the first company in Indonesia and one of the first in South East Asia to install the latest Konecranes SMARTON ‘crane with a brain’ with TRUCONNECT remote monitoring and reporting.

The SMARTON crane at Moly-Cop Indonesia’s Cilegon plant has some of Konecranes most advanced technology, including smart features like sway control and target positioning to make lifting safer and more efficient. The customer relies on their 15t crane for all their loading and unloading, so if they have lots of deliveries to make, they need to be as efficient as possible.

TECHNOFAST INDUSTRIES HYDRO POWER STATION – SOUTH KOREA Technofast Industries is a worldwide leader and specialist in bolt tensioning, providing innovative technical solutions and uncompromising customer service.

Products manufactured at its Brisbane operation include bolt tensioners, hydraulic nuts, plus ancillary items.

Following considerable investment in time building relationships within South Korea’s power generation industry, Technofast’s products are now used on one of the country’s major hydro power projects. Technofast’s EziTite M125 hydraulic bolts are being used as an alternative to heater rods previously employed in maintenance.

The hydraulic bolting system is applicable to gas, steam, water and wind turbines. It securely fastens together the shaft and turbine blades.

From humble beginnings in the 1990s, Battlefield Sports has gone from strength to strength on the global stage and has become an industry leader in outdoor laser tag equipment.

Battlefield Sports’ patented technology enables theme park operators and Family Entertainment Centres alike to create exhilarating events for their customers either inside or outside. SATR, the worldfirst intelligent optoelectronics can simulate the performance and sounds of up to 69 firearms, plus a “Laser Tag” theme.

Made in Australia, this is a world-class product designed for numerous markets; it interacts in 13 languages and can be customised. Patented in Australia and the USA. Recently it was invited to the premiere of sci-fi movie Divergent. The task was to create a fan experience outside the Odeon cinema in London.

FROSTY BOY AUSTRALIA Frosty Boy Australia, established in 1976, is a leading Australian manufacturer and supplier of dessert and beverage powder-base products.

The company, with its facility in Yatala, Gold Coast, manufactures the equivalent of two million serves of soft serve ice cream per day and exports to 48 countries, wth 75 per cent of sales attributed to export.

Indeed, Frosty Boy’s continued success is attributed to its export. Since the company began exporting more than 14 years ago, Frosty Boy has experienced a year upon year average compound sales growth of 18 per cent.

The company maintains a commitment to food safety with accreditations regularly monitored by Australian and international industry bodies.

EDITOR’S NOTE This is a selection from all the nominations received at the time of going to press. Once judging is complete, Finalists will be announced on www.manmonthly.com.au. They will also be individually notified.

24 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

MA0415_000_ICN

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It’s about

who you know in business.

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EndeavourAWARDS

PROUDLY SPONSORED BY

MOST INNOVATIVE MANUFACTURING COMPANY

TEXTOR TECHNOLOGIES

RED ROBOT

NON-WOVEN MATERIALS

PHOTO BOOTHS AND PHOTO SHARING TECHNOLOGY

Textor Technologies (Textor) is a non-woven textile manufacturer for the hygiene industry, and based in Tullamarine, Victoria.

Formed in 2000 as part of a management buyout from the English parent company, it has remained a privately owned family business since.

Textor specialises in the design and development of materials for the diaper market; its technology evolves around the handling and transfer of bodily fluids. The company’s commitment to innovation is globally recognised. Its philosophy involves not just product and process development, it also includes the business model and the way it treats its employees. In 2014 Textor commercialised a novel 3-dimensional nonwoven material, considered to be a disruptive technology. It provides not only a technically superior performance but also a material that can be perceived by the end user as a clear point of difference which leads to better brand loyalty for Textor’s key customer.

MICRON MANUFACTURING Micron is a new, innovative and creative engineering and manufacturing company. Micron services many market sectors, mainly in the R&D, design and manufacture of new products. They run a lead manufacturing facility in Sydney, with a focus on automation and labour saving through technology. Only seven are employed, with a highly automated operation. It offers complete sheet metal design, engineering and manufacturing solutions, specialising in high-mix, low-volume and highvolume work with the flexibility for 24-hour turn-around on custom jobs.

Its turnaround is between 20 and 50 different jobs a week in the Australian market, serving the mining and resources, retail, rail and infrastructure, and government markets.

Red Robot was founded in 2012 by Phil Preston and Duncan Amos. To date there are three major products on offer, along with a series of options and add-ons.

RR serves two distinct markets: the photo booth rental start up market, and social photo sharing technologies for branding and marketing purposes.

The Photo Booth industry is not something that had existed previously in Australia. Red Robot is a leader and innovator in the industry. Red Robot designs and manufactures Australia’s first fully commercial, portable, single operator, event-based Photo Booth aimed at others wanting to emulate its rental business model.

In three short years it has become Australia’s largest manufacturer and exporter of the concept, while helping more than 220 small businesses to start up.

SEELEY INTERNATIONAL Founded in 1972, Seeley International is Australia’s largest air conditioning manufacturer and global leader in developing energyefficient cooling and heating products.

A commitment to innovation and excellence is at the heart of Seeley, and its success in delivering on that commitment has been recognised through many awards and an expanding global presence, exporting to more than 120 countries worldwide.

This year Seeley launched another world first, its Braemar 7 star ducted gas heater, the highest star rating and most efficient conventional gas heater in the world. The 7 star heater has shifted the paradigm of the star rating system in Australia.

It recently invested in a product testing facility worth over a million dollars, which is NATA accredited and based the company’s manufacturing plant in Lonsdale, SA.

EDITOR’S NOTE This is a selection from all the nominations received at the time of going to press. Once judging is complete, Finalists will be announced on www.manmonthly.com.au. They will also be individually notified.

26 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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SEW-EURODRIVE – Driving the World

Proud sponsor of the Most Innovative Manufacturing Company

Why do manufacturers turn to SEW? One of our core values is service. It’s this proud tradition of providing unparalleled service that forms the cornerstone of the company globally, and why we have a network of state-of-the-art facilities spanning across Australia. It’s also the reason why SEW-EURODRIVE is usually the first address when searching for drive technology to drive this great nation. Many household brands are secure in the fact that SEW is working quietly in the background ensuring a seamless path into the market place.

www.sew-eurodrive.com.au 1300 SEW AUS (1300 739 287) to be directed to your nearest office Melbourne (Head Office) I Sydney I Brisbane I Townsville I Perth I Adelaide

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EndeavourAWARDS

PROUDLY SPONSORED BY

TECHNOLOGY APPLICATION

KEECH AUSTRALIA KEECH 3D ADVANCED MANUFACTURING Keech Australia is recognised as one of regional Australia’s most successful and innovative businesses.

From its traditional foundry beginnings, the company now employs the latest technology in design, research and additive manufacturing to produce carbon neutral steel castings for the global mining industry, and is an OEM and direct supplier to the world’s largest miners and equipment makers.

Keech’s patternmaking subsidary became Keech 3D Advanced Manufacturing in 2014, investing around a million dollars in Australia’s largest commercial 3D printing machinery. As well as an innovative new business income stream for Keech, Keech 3D’s digital manufacturing enables rapid prototyping for its parent company by eliminating time and labour intensive production steps.

REDARC ELECTRONICS REDARC TOW-PRO REDARC is a technology-based company founded in 1979 in South Australia. It designs, manufactures and provides patented, reliable and fully integrated portable vehicular power solutions and customer-centric after sales service to customers in Australia, New Zealand, France and North America. Its Tow-Pro is a world breakthrough in electronic brake controllers, offering greater safety for motorists towing heavy trainers and caravans.

The Tow-Pro electronic brake controller offers motorists the choice of engaging either inertia sensing or user controlled braking on trailers through the simple turn of a dial inside the towing vehicle. It is the first time either mode can be selected through one central unit. Its combination of small/safe dashboard footprint and inertial progressive braking is unique in its market and is the result of significant innovation.

BONFIGLIOLI TRANSMISSION AUSTRALIA Bonfiglioli Transmission (Australia) is part of the international Bonfiglioli group, with 2,500 employees worldwide.

Bonfiglioli designs, manufacture sand distributes a complete range of gear-motors, drive systems and planetary gearboxes to satisfy the most demanding needs for industrial processes, automation, mobile and renewable energy applications.

Bonfiglioli engineers further reduced the footprint of their powerful but compact planetary/helical Hi Torque combination drives to provide a durable and efficient solution for a new shuttle conveyor drive at Fortescue’s Cloudbreak operation. Additional features included a pump-driven lubrication system, assembled locally to expedite construction and installation.

BOUWMEESTER COMPOSITES TAMMAR CARBON MOUNTAIN BIKE RIM AND CEP MANUFACTURING In 2008 Mello Bouwmeester founded his company in Victoria, producing carbon racing wheels for the road bicycle market in Australia.

The popularity of the wheels quickly grew in the domestic racing and saw the wheels claim several national international awards.

During this period, the rims were made in Asia to Bouwmeester’s design and specification. In 2012 a new product, direction and focus on local manufacture in advanced composites was taken for the business, by this time Mello had also relocated to South Australia. Tammar is manufactured with an energy efficient advanced composites process to produce a globally leading and optimised carbon mountain bike wheel.

The advanced production process creates a new carbon product offering the end user a lighter, stronger and optimised carbon rim for performance compared to aluminium and current carbon rims on the market.

EDITOR’S NOTE This is a selection from all the nominations received at the time of going to press. Once judging is complete, Finalists will be announced on www.manmonthly.com.au. They will also be individually notified.

28 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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Welcome to the world of

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EndeavourAWARDS IT APPLICATION

MANSFIELDS’ APPLICATION OF INFOMOTION ERP InfoMotion ERP takes a holistic view of an organisation’s requirements and delivers an end-to-end single platform software solution which is fully integrated for company-wide deployment and complete with highly automated workflow processes.

Mansfields, a privately owned dry food manufacturing company located in Victoria, wanted a system that would replace manual processes and automate the recording of production data, from the factory floor to the office.

If data could be captured and reported in real-time, Mansfields would gain benefits in data accuracy, flexibility and resource efficiency.

Mansfields estimates that the introduction of InfoMotion and the resulting automation of previously manual processes has reduced demand on resources in administration by 30 per cent.

ZIP HEATERS’ APPLICATION OF MITREFINCH’S TMS Mitrefinch’s employee time and attendance system software (TMS) helps organisations to automate manual tasks, including, recording who is at work, allocating employee time to job codes, highlighting exceptions for approval and calculate award/entitlements. The software can collect employee time and job data from wall-mounted terminals, PC or mobile device, and touch screen kiosks.

Zip, a Mitrefinch customer, designs and makes instant boiling water systems sold in more than 70 countries.

However, it had an employee time and attendance management that was becoming cumbersome and taking up a lot of management time.

Fortunately, Mitrefinch’s employee time and attendance system software was able to achieve all of the business goals that Zip Heaters had (and more). The system was approved and rolled out across Zip sites in New South Wales.

EXPORTER OF THE YEAR

COMPOSITE MATERIALS ENGINEERING Composite Materials Engineering (CME) has been exporting locally manufactured composite products for over 30 years. CME is well known internationally in many industries. However, the company is particularly prominent in the food manufacturing industry. It supplies products to confectionery, pharmaceutical and bakery manufacturers in over 35 countries.

CME launched Akril panels in 2006. Akril panels are an alternative to glass and are used in domestic and commercial developments as splashbacks for kitchens, laundries and bathrooms as well as wall panels and signage.

In 2014 CME launched the Akril panel product range in the UK and has seen a significant rise in the market in the past 12 months. As well as supplying the local market, the additional business gained through export has enabled the company to become more cost competitive.

COOK MEDICAL AUSTRALIA Cook Medical Australia is based in Brisbane and serves as the company’s Asia Pacific headquarters.

The Brisbane facility is also one of Cook Medical’s major manufacturing plants. Medical technology manufactured there is sold in more than 135 countries around the world.

From Brisbane, Cook Medical Australia oversees Cook Medical businesses in Japan, China, Korea, India, Singapore, Malaysia, Hong Kong, Taiwan and Thailand. Plans for the future include entering the medical device markets in Vietnam and Indonesia.

In 2014 Cook Medical Australia manufactured over 10,000 stent grafts for the treatment of aortic aneurysms, including over 3,000 patient specific custom made devices and just over three quarter of a million needles to assist in the treatment of reproductive health. Of these locally manufactured products, 92% of them were exported to over 130 markets around the globe.

EDITOR’S NOTE This is a selection from all the nominations received at the time of going to press. Once judging is complete, Finalists will be announced on www.manmonthly.com.au. They will also be individually notified.

30 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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EndeavourAWARDS YOUNG MANUFACTURER OF THE YEAR

JAY THOMAS LOGAN

DANIEL EGAN-WYER

HOWARTH’S SHEET METAL FABRICATION

MACHINERY AUTOMATION & ROBOTICS

Jay Logan commenced work at Howarths in 2009, when he was just 15 years old.

Since then has shown his dedication and commitment to his chosen profession, and completed his apprenticeship hours in record time: allowing him to be signed off early.

Logan was fortunate to also be a nominee at ‘World Skills 2013’, finishing in the top 10. This was an outstanding achievement for such a young man. Logan is a Sheet Metal Worker 1st Class, who is part of the dedicated team at Howarth’s.

He is responsible for the full range of work within the factory including the operation of the company’s Adira Press Brake and Strippet Turret Press.

He carries out various welding and assembly tasks as well. Howarth’s Sheet Metal Fabrication is an Australian owned business located on the Redcliffe Peninsula in Brisbane.

Daniel Egan-Wyer has shown great innovation, initiative and technical skill in the cutting edge automation technologies of 3D vision and complex robot control.

He has developed structured Visual Basic code to coordinate the actions of a robot and implement the sensing algorithms to automatically execute multiple robot tool changes.

Actions include raising the conveyor belt whilst still running and completing replacement of worn idlers with new idlers before lowering the conveyor belt down on the new idler set.

Egan-Wyer’s code controls the steps of this process, during normal operation as well as under fault conditions or when the cycle needs to end prematurely.

Machinery Automation & Robotics (MAR) is a leading designer and manufacturer of complete industrial automation solutions.

LIFETIME ACHIEVEMENT

JOHN GUEST

MIKE RICH

JUBILEE SPRINGS

ATTACHE SOFTWARE

John Guest is the managing director of Jubilee Springs, one of the few remaining spring companies in Australia. He started in 1973, after his father died and after finishing year 9 at school. He became a fitter and machinist and worked his way through the company, beginning at the factory floor.

Among his milestones are decentralising the company from Sydney to the Central Coast, where he managed the building of three new factories.

He oversaw the taking over of several companies, including 4 Slide Forming, Peerless Pegs, and C&K Springs.

He has seen Jubilee grow from five to over 40 employees, and the multi-generational Australian business is still going strong after 75 years.

Mike Rich started in manufacturing with what is now Fonterra (the world’s largest dairy company), then in meat propcessing, then in the oil industry (where he learned computer programming).

Armed with a commerce degree, he moved into smart manufacturing and developed software that has helped over 30,000 SMEs, including manufacturers, improve business performance.

Attache is one of the most successful local smart manufacturers, twice winning Software Product of The Year. Rich has been managing director and major shareholder for 28 years, moving into the cloud several years ahead of the others. He is also the “chief engineer” behind its business transformation process, and the voice behind the M Institute, which aims to increase the number of medium-sized firms in Australia.

EDITOR’S NOTE This is a selection from all the nominations received at the time of going to press. Once judging is complete, Finalists will be announced on www.manmonthly.com.au. They will also be individually notified.

manmonthly.com.au

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MadeIN AUSTRALIA Frosty Boy’s future in Asia looks bright In not much over a decade, Frosty Boy has increased exports from almost nothing to threequarters of its business, selling into nearly 50 countries. Brent Balinski reports.

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HE buzz phrase “Asian Century” was one you couldn’t avoid in 2012, but rarely hear nowadays.

However, the increasing size of the middle-class in the continent still holds huge potential for Australian food and beverage exporters, such as Frosty Boy Australia.

Frosty Boy officially opened a new, purpose-built factory in Yatala at the end of last year, relocating for capacity reasons. Its rapid growth – 18 per cent compound annual growth for the last 14 years, according to the company – has been driven in no small part due to success in Asia.

Frosty Boy CEO Dirk Pretorius believes there are two parts to the company’s thriving trade in the continent: smartly and effectively serving its existing customer base, and being visible in its market. The latter includes putting in time at a lot of trade shows.

“What you find in these Asian markets, if you just go and look at your QSR [Quick service restaurant] chain, and the growth rate – because of the acceptability of western foods and the demand of western foods in Asia – is [increasing] so rapidly.

“Combine that with the disposable income [growth in the middle class], you’ve got a sort of natural growth pattern happening in that market with your existing customers,” he told Manufacturers’ Monthly.

The business-to-business manufacturer of powdered soft serve, frozen yoghurt and beverage powders includes Burger King Asia and Wendy’s among its customers.

Frosty Boy exports to 48 countries currently, but its success and its focus is largely due to its Asian customers.

“We focus on the Asian market in terms of the time that we spend in the market,” said Pretorius, who believes that the business can sustain growth of around 15 to 20 per cent.

Keep the cost down The Yatala site covers 6,000 square 32 APRIL 2015 Manufacturers’ Monthly

metres and has double the capacity of the previous plant. It is the third site the company has occupied since the current owners picked up the company in 1999.

The factory’s current output is the equivalent of two million serves of soft serve per day, running two shifts a day, five days a week.

“With the previous factory we were running seven days a week, 24 hours a day, in the end,” said Pretorius.

“So we’ve made sure we had enough capacity; we’re currently

Firstly, continuous improvement involves keeping abreast of trends in the fast-moving food technology market. New technologies are matched to existing recipes, for example.

The second part is the recipes themselves. It’s not a one-size-fitsall approach for what Frosty Boy produces.

Recipes must be developed to tastes and/or matched to an existing product.

Finally, and also involving collaboration with the customer, involves matching ideas to customers’ menus

The Yatala site has double the capacity of the previous plant. sitting at around 60 per cent capacity on a five day per week production shift. So there’s a little bit more up our sleeve, and that will see us through for the next ten years.”

The site runs two lines. These include the line from the previous site at Loganholme and a new, “superhigh-capacity version” of the old line.

The facility is highly automated, from measuring to palletising. Despite the high output volumes, the plant can be run with only six people per shift manufacturing product.

R&D is key For Pretorius’s business, research and development means three things.

and suggesting products that match market trends.

“The investment in that is basically at our new facility we have a really good R&D [capability] in there, for food tech,” he said.

“And obviously getting the best minds in the business as a part of your team to do this work for us.”

Blends and trends Speaking of trends, one that has influenced a recent addition to the business is around beverages.

According to research used by Frosty Boy, the beverage market is growing sharply worldwide. Just within Australia, it’s worth $542 mil-

lion, and has grown 10 per cent since 2009.

In view of this, Frosty Boy launched its Art Of Blend brand of premium beverages in September last year.

“It’s early days though, but it’s definitely taken off much better than expected,” said Pretorius of the addition to the company’s range, which features its own website and brand, distinct from Frosty Boy’s.

As part of the mission to get the new Art of Blend (and the company’s tried and true frozen yoghurt and ice cream formulas) to more and more customers, Pretorius was in India spruiking the new brand when we spoke to him.

The company’s focus on exports, particularly to that continent, has significantly sharpened since Pretorius began in his role.

In 2001, 98 per cent of sales were Australian. These days, 75 per cent of its business is export. Recognition of its success has included qualifying as a finalist in the Premier of Queensland’s Export Awards in both the Manufacturing and Regional Exporter categories.

Its export growth – past and future – seems very much an Asian Century story.

“If you look at the size of the Australian market and you compare it to, for instance, the size of the market in Asia, where we have 4 billion people, and you look at the middle class in these markets – which is our consumers – and it’s currently more than 600 million people in that middle class,” he said.

“And the projection is that this will grow in the next ten years to over 3 billion people in that middle class.

It’s a no-brainer basically, on where the focus should be if you want to expand your business.”

Frosty Boy Australia 1800 784 197 www.frostyboy.com.au manmonthly.com.au

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Materials HANDLING Optimising crane safety and productivity

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ONECRANES, has introduced to Australasia its Crane Reliability Study (CRS) to gather accurate and important data on crane usage and design life, in order to optimise safety, productivity and maintenance programs.

CRS is an engineering assessment that studies the current condition of a crane and provides an accurate estimate of its remaining design life. Konecranes follows this up by providing a comprehensive report and expert consultation with a plan for current and future crane usage, providing a valuable tool when dealing with an aging crane fleet, changes in production, safety issues, or other concerns.

“Each CRS is customizable to individual users’ specific needs and requirements,” says Mr John Bailey, General Manager, Service Development, Asia MKonecranes A 0 4 1 5 _ South 0 0 0 East _ SC A Pacific (including Australia and New

maintenance contract. “Our highly trained staff utilize the latest technology to provide an expert guide to improving crane reliability and performance,” he said.

A CRS is highly beneficial in the following scenarios.

Firstly, if production increases, a CRS will determine whether the cranes can handle the increased work.

Secondly, if a crane is going to be used for additional tasks other than those specified originally, a CRS will assess whether the crane is capable to safely take on the new tasks, or if not, recommend any necessary changes.

Thirdly, when the remaining design life of a crane is unknown, a CRS will provide accurate calculations of it, allowing estimations of safe Konecranes can provide a CRS for any make operational life and maintenance and or model of crane. modernization optimization. lastly, if a crane is experiencZealand), an organisation that glob1 2 0 1 5 - 0 3 - 3 0 T 1 5 : 2 9 : 4 9 And + 1 1 : 0 0 ing any problems or has decreased ally has over 430,000 cranes under

productivity, a CRS can pinpoint the cause of the problem and recommend the best solution.

“Konecranes can provide a CRS for any make or model of crane, regardless of age,” says Mr Bailey. “The CRS looks at the overall condition of a crane’s structures and components and evaluates this in detail with a focus on safety, productivity, reliability, usability and remaining design life,” he said.

“Knowing what modernizations are needed in advance allows users to prioritize their activities and schedule the work so that the productivity is maximized and uptime of the equipment is increased over its life cycle. This not only helps prevent unnecessary production downtime, but also saves money. CRS helps you to plan the future of your cranes.”

Kone Cranes 1300 937637 www.konecranes.com.au

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34 APRIL 2015 Manufacturers’ Monthly

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Confined space lifting solution PHOENIX Lifting introduces a new solution for the safe handling of heavy loads in confined spaces.

My-T-Lift is a 360° telescopic jib crane that can safely handle heavy loads up to 300kg.

Designed for single handed operation, the new telescopic jib cranes can be mounted on trucks, trailers, pontoons and Suitable for use similar structures. indoors and outdoors.

The design of the crane allows accurate placement of heavy loads, even in confined spaces. Made from high quality durable steel, the telescopic angle of 360 degrees in the Meister cranes Can safely handle heavy loads up to 300kg. jib crane can be folded down allows a greater area to be serviced. when not in use.

Designed to Australian Standard AS 1418, The telescopic jib cranes are available with an optional manual winch consistMeister column mounted slewing jib cranes ing of a 6-metre rope or a 12- or 24-volt electric winch, featuring a rope length of can be supplied with motorised slew or 12 metres. manual hand drive slew. The cranes are available in a 150-10,000kg SWL range.

Phoenix Lifting The company supplies a range of slewing 1300 875 611 2 0 1 5 - 0 3 - 1 2 T1 4 : 2 0 : 0 4 + 1 1 : 0 0 jib cranes and lifting equipment. www.phoenixlifting.com.au

Column mounted slewing jib crane PHOENIX Lifting presents the proven range of Meister slewing cranes designed to deliver safety and efficiency in the workplace.

Ideal for use almost everywhere including indoors, outdoors, on production lines, despatch areas and loading bays, Meister column mounted slewing jib cranes come with a large M range A 0 4of1accessories 5 _ 0 0 0 and _ Kstandard ON 1 parts for unlimited versatility. The slewing

CLX Chain Hoist A safer and more productive way of lifting

CLX chain hoists are designed for flexibility and durability in industrial applications. With variable speeds and a load range from 60 kg to 2,500 kg, they are extremely versatile. You can use this hoist at a workstation, on an overhead travelling crane, or with a jib crane - a high duty factor means it really lasts. Konecranes CLX electric chain hoists are an ideal solution for all these applications. With the built-in control panel and 6:1 speed ratio it provides an economical solution to enhance productivity and safety.

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For your nearest branch please contact (Australia) 1300 937 637 (New Zealand) +64 9634 5322.

Or visit our website www.konecranes.com.au

manmonthly.com.au

Manufacturers’ Monthly APRIL 2015 35

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Management Does manufacturing have a future?

The mining boom presented Australia with a once in a generation chance to reposition its economy for sustainable growth. But, writes Professor Roy Green, we squandered it.

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CHARACTERISTIC feature of economic booms is that those caught up in the excitement believe they will go on forever. Australia’s recent mining boom is no exception. Following the pattern of resource-based economies, a commodity price hike increased our terms of trade without any special effort on our part – adding 15 per cent to our national income over a six year period while the rest of the world languished in recession.

Did I say the rest of the world?

Some countries performed much better than others, and I’m not just referring to the obvious example of China and emerging markets. The advanced economies which recovered most strongly from the global financial crisis – Germany, Sweden, Switzerland – also have the most competitive manufacturing sectors. How can this be when manufacturing is supposed to be in terminal decline?

I’ll come back to this question in a moment, but first let’s revisit Australia’s boom, which ended in predictable symmetry with the way it began – a commodity price collapse.

This precipitated the biggest reversal of our terms of trade in five decades with immediate impact on our national income. Is it any wonder this government and the last have found achieving budget balance so hard?

We must come to terms with the painful reality that Australia has squandered a once in a generation chance to reposition its economy for sustainable growth. The question is not whether it could have been different, as we know in retrospect it could, but what policy lessons can be learned for the future?

The Dutch had to learn these lessons the hard way in the 1970s when a currency spike associated with North Sea gas made their manufacturing sector uncompetitive. The phenomenon was given a name – the ‘Dutch disease’. The British did no better, in fact arguably worse, when

36 APRIL 2015 Manufacturers’ Monthly

The mining boom was never going to be a substitute for a robust manufacturing sector, says Roy Green. in the 1980s they cheerfully frittered away the proceeds of their oil bonanza in tax cuts and a consumption boom, rather than a long term investment strategy. It has taken more than a decade for the UK to rebalance its economy, with a renewed focus on manufacturing.

Only the Norwegians understood the lessons of these dismal but instructive experiences. They took a public stake in their oil assets and imposed not a 20 or 40 per cent but a 76 per cent resource rent tax. They also established a sovereign wealth fund to quarantine exchange rate effects and invest in their research and innovation infrastructure.

Clearly, these measures will enhance Norway’s capacity to diversify its industrial structure as the oil price plummets.

Likewise, Australia’s challenge is to identify new sources of growth, based not just on our comparative advantage in raw materials, subject as they are to diminishing returns, but on the ‘competitive advantage’ conferred by knowledge and ingenuity. This will mean rethinking our

approach to manufacturing, with the prospect of increasing returns in high value segments of the world market.

But we face three additional hurdles which compound this challenge.

First, while the dollar would normally have fallen with the terms of trade, it refused to do so until recently, and even now may be overvalued. The effect has been to make it harder for trade-exposed non-mining activities to plug the gap left by mining. As a result, the large scale job losses in manufacturing over the last five years are attributable more to import competition than the labourdisplacing technological change which has characterised manufacturing historically.

The second, related hurdle is the deterioration of Australia’s productivity performance since the 1990s, masked as it was by the terms of trade. This deterioration not only subtracts from current and future growth, but exacerbates our competitiveness problem. As a high cost economy, Australia must undertake a fundamental shift from domestically focused mass production – a legacy

of tariff protection – to more flexible and specialised activities in global markets and value chains. The Europeans call this ‘smart specialisation’.

The third hurdle can only be described in Paul Keating’s memorable phrase as policy indolence. Just at a time when governments around the world are recognising that the way out of secular stagnation, unemployment and environmental degradation is through productivity-enhancing investment in innovation and skills, the Australian Government is reducing its contribution to this vital strategic objective.

This is all the more extraordinary when we cast our minds back to the 2008 review of the national innovation system, which lamented that we didn’t have much of one. Australia ranks poorly for business-university collaboration, not because of market failure but ‘systems failure’. And we still do, as the present Industry Minister has publicly acknowledged.

How can manufacturing help us to reimagine our future? In becoming more globalised, knowledge-intensive and interdependent with service design, robotics and digitisation, manufacturing matters more than ever for advanced economies. This is firstly because it drives innovation and technological change, and secondly because it contributes to the external trade balance.

On the first point, manufacturing accounts for a quarter of Australia’s private sector R&D expenditure. And even more is spent on ‘non-R&D’ innovation, such as new business models, systems integration and high performance work and management practices, with diffusion effects throughout the economy.

Second, without a manufacturing base, Australia would need to import more consumer and capital goods, reinforcing our chronic inability to run a positive trade balance. Additional borrowing to do so together with the repatriation of resource profits would manmonthly.com.au

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expose serious vulnerabilities in our external position. Before the global financial crisis, conventional wisdom viewed the current account deficit as irrelevant. Since then, economic opinion has switched as financial markets savaged countries excessively dependent on foreign borrowings.

It is increasingly recognised that accelerating deindustrialisation results in countries going backwards technologically with a diminished capacity for innovation. Other industries cannot substitute for this loss in capacity.

While the resources sector increased its R&D spending to match manufacturing, this has mostly been directed at tax minimisation rather than technology maximisation. Also sales of locally made equipment to the resources sector amount to just 2 per cent of total annual manufacturing sales. The mining boom was never going to save or substitute for a robust manufacturing sector.

Without manufacturing, we face the prospect of losing science and engineering expertise. Manufacturing directly employs one in five engineers in Australia, and many more indirectly.

Many people initially trained in manufacturing move to other industries. Where will the engineers, technicians, maintenance fitters and machinists come from to install and maintain our telecommunications, power stations, water plants, transport and defence systems? The resources sector does not train for these skills, but ‘buys them in’.

How long will the taxpayer fund research in solar energy, aerospace, microelectronics, advanced materials, nanotechnology and biotechnology when the industries that use these

“

Where will the engineers, technicians, maintenance fitters and machinists of tomorow come from... manmonthly.com.au

high level skills to innovate and make new products have disappeared? The Productivity Commission has already questioned public support for science and engineering when the benefits of resulting knowledge accrue to other nations.

Recent experience should be sufficient to dispel the myth that advanced economies can offshore their manufacturing base and retain high value design and marketing. Asian firms that started as cheap no-name makers of western-designed and branded products have quickly become global manufacturing leaders.

Manufacturing is changing the world and is itself changing as the prime source of transformational products and services. Australia’s commodity boom was an opportunity to build this transformational capacity, not to let it slip away in the name of a ‘black box’ economic model.

Now we must do so in less favourable circumstances.

Despite over two decades of trade liberalisation, Australia has a predominance of low to medium tech manufacturing, in steel, non-ferrous processing, building products, basic chemicals and food processing.

On the other hand, we scarcely register in high tech manufacturing, despite some notable success stories.

Around the world, ‘micromultinationals’ are superseding vertically integrated corporations through niche production in global networks and value chains. This is the future of manufacturing, but also the largest component of Australia’s trade deficit.

The alternative is manufacturing decline. Some economists would argue that this is not a problem at all but ‘structural change’ which results in a re-allocation of labour and capital, leaving us all better off.

The main deficiency of this approach is that it confines itself to asking how a fixed quantity of resources can be efficiently allocated. Consequently, it sees industry assistance as a zero-sum game, with some firms benefiting at the expense of other producers and consumers, with no net economic gain.

By contrast, influenced by the work of Joseph Schumpeter, other economists are beginning to model

Australia scarely registers in high tech manufacturing. capitalism as a ‘dynamic system’, where change is the only constant.

It is increasingly understood that because innovation is risky and expensive, and information is costly to acquire and use, government has a role in reducing risk and encouraging the uptake of new technologies and skills. This is the role of the ‘entrepreneurial state’.

The former Labor government commendably brought innovation to the forefront of industry policy.

This included support not only for R&D and entrepreneurial start-ups in high tech manufacturing but also the development of innovation capability in low and medium tech firms.

After a shaky start, and a barrage of policy advice from business groups, the Coalition government has begun to craft similar measures, albeit with minimal funding.

The centrepiece of the government’s approach is five new ‘Growth Centres’, including one for advanced manufacturing, which will be designed to encourage business- university collaboration. These have been allocated around $190 million, compared with almost $3 billion for the UK Catapult Centres, on which they are modelled.

In my view, a shared vision of future manufacturing in Australia should have three main elements.

First, it should intensify the engagement of industry with research institutions, given the importance of public research in our innovation

system. Second, it should further enhance the ‘absorptive capacity’ of manufacturing firms, along with more effective public procurement, so they are better placed to participate in global markets and value chains.

Finally, there should be a renewed emphasis on management and workplace innovation as the key to a competitive, knowledge-based economy.

Our own recent analysis of Australian manufacturing management showed that the area where managers most lag world best practice is ‘instilling a talent mindset’.

There is no shortage of talent and creativity in Australia, as many examples attest, including among our successful manufacturers. The real deficit lies in the performance of our innovation system, the imagination of our policy-makers and the capacity of our managers to nurture talent and deploy it to full potential.

This is an edited version of a presentation which originally appeared on Ockam’s Razor, ABC, February 22 2015. Reproduced with the author’s permission.

[Professor Roy Green is Dean of the UTS Business School, University of Technology Sydney.

He chaired the CSIRO Manufacturing Sector Advisory Council, the NSW Manufacturing Council and the former Australian Government’s Innovative Regions Centre.]

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Exporting Time to chase the tiger Exporting, like so many things in life, is all about timing, and with India’s star on the rise, now could be the opportune juncture to go hunting. Alan Johnson reports. (Part II)

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INCE his election in May last year, Indian Prime Minister Narendra Modi has set the world’s largest democracy on path of economic reform. For example, he has instituted ‘Make in India’, a national program designed to transform India into a global manufacturing hub.

When Australian manufacturers first hear about the program, they might think of it as competition.

However, as Nicola Watkinson, Austrade’s Trade Commissioner for South Asia told Manufacturers’ Monthly, that is not the case.

In fact, she said, the program offers Australian manufacturers a huge opportunity, because up until now the manufacturing sector in India, as a whole, has not been particularly competitive.

“Now there is a huge amount of government support, at both the state and federal level, to try and improve the competitiveness of Indian manufacturing, meaning there are a number of opportunities for Australian companies,” Watkinson said.

First she said is India’s economies of scale, something Australian companies need if they are going to expand beyond their domestic horizons.

She said Indian companies are actively looking for new technologies, new innovations and solutions that will allow them to become more competitive.

“For Australian manufacturers this is a great opportunity to showcase their skills. They have shown their manufacturing expertise in short production runs, and managing the complexity of being nimble, lean and flexible,” said Watkinson.

“There is a lot of expertise in Australia that can help Indian manufacturers to implement process and product innovation as well as sell into the value chains that they are creating.”

In January this year, over 300 Australian companies joined Trade Minister, Andrew Robb, in India for 38 APRIL 2015 Manufacturers’ Monthly

one of the largest Australian trade promotions ever held.

Watkinson said Australia Business Week in India was very successful and a serious commitment to genuinely explore Australia’s trade potential with India.

“India is now a reforming economy as well as a developing one, and Australian companies should make efforts to understand this as well as act on it,” she said.

automotive sector. Many might not realise that India is the world’s third largest producer of cars, and will keep growing.

“But there are other opportunities, to feed into those value chains that the Indians are building now as they become more competitive across a whole range of industry sectors.”

She said the third aim was to attract Indian investment into some of Australia’s small technology and start

improve, but now Modi wants India to be a place where people come to see good manufacturing and over time to export products.”

Watkinson explained that, at the moment, very little of India’s manufacturing is exported.

“India mainly manufacturers products for the domestic consumer, whose market share has been eroded in recent years by imports. Basically, China and other countries produce better quality goods for a cheaper price,” she said.

“So India has to improve its manufacturing productivity in order to compete on its own domestic stage as well as becoming good enough to be able to export, and that is where I see Australia’s capabilities can support it.

Challenges

Watkinson said the aim of the trade week was to get Australian manufacturers to meet leading Indian manufacturers and corporate houses to achieve three outcomes.

“Firstly to get manufacturers some direct supply contracts. One company, for example, might have a very efficient water filter suitable for Indian manufacturers along the Ganges River, where new rules dictate zero liquid discharge,” she said.

“The second aim revolved around value chain integration. Already we have a number of Australian companies that are feeding into India’s

up manufacturing companies, those who find it so hard to win support domestically from banks and other financial institutions.

“While Australia is small, what we offer is a strong capability in technology and innovation in both product and process innovation,” Watkinson said.

“Indians are actively looking on how they are going to deliver on Modi’s Make in India campaign and they can only do that by becoming competitive in their domestic market, because up until now it has been very fragmented and very protected.

“There hasn’t been the need to

Regarding dos and don’ts Watkinson admitted India has some challenges, but said things like bribery and IP protection are not pronounced issues in the market.

“IP protection is not the same degree of problem as manufacturers have experienced in China,” she said.

“In India, we have the Westminster system and the legal system is a lot clearer, if quite slow. You should avoid using it if you can, but it does move to protect IP.” Watkinson said the real challenge in India is to work out which part of India companies should tackle first.

“It’s a huge market, with each region having its own special characteristics,” she said.

For example, Watkinson suggested equipment manufacturers should focus on Calcutta, for that is where the big companies are.

“However if company manufactures IT equipment then the focus should be on Bangalore, and be part of the development there, or if an automotive manufacturer, they should be looking at Chennai,” she said.

She said the first challenge for Australian companies is not to see >> manmonthly.com.au

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Exporting >>

India as one market but to pick a part of India to start with and to look at how they do business in that location, because the different states’ rules are quite specific to each jurisdiction.

“It is best to go into one location and succeed there, and then expand out from that part into other areas of India. Getting that decision right first is really important,” she said.

According to Watkinson, the second challenge is having a market entry strategy.

“What strategy are you going to use, are you going to have a local distributor here, enter a JV partnership or set up your own company?” she said.

“There is a lot of work that needs to be done to look at the best approach would be for different industries.”

She said having a good partnership is very important in such a complex market.

“Finding a partner that doesn’t have a history of problems regarding bribery and other issues is important,” she said.

How it’s done The joint venture between India’s Tata Steel and Australia’s BlueScope Steel is an example of how Australian manufacturers can find new markets and new revenues overseas.

The partnership, which was first established in 2005, has outperformed expectations, powered by India’s economic growth.

Today, Tata BlueScope Steel has three business divisions in India offering premium brand steel products for building and construction.

The company has four state-of-theM A 0 3 1 5 _ plants, 0 0 0 _supported MO S art manufacturing

40 APRIL 2015 Manufacturers’ Monthly

Australia’s merchandise trade with India A$m 20,000 16,000

Exports

12,000 8,000 4,000

2008-09 2009-10

Imports

2010-11 2011-12 2012-13 2013-14

Compiled by the Economic Diplomacy, Trade Advocacy & Statistics Section, DFAT, using the latest data from the ABS, the IMF and various international sources.

India. Having a global brand does not by a network of sales offices. A board guarantee acceptance by the local that comprises representatives from market,” he said. both companies governs the Tata “We learnt this the hard way. We BlueScope business. based our business case on achieving BlueScope, which had limited oppremiums because we held a signifierating experience in India, opted for cant share of the Australian market a joint venture because of Tata’s local and we thought we would achieve brand recognition and its corporate similar results in India. values. Tata had strong growth ambi“But that was not to be the case. tions, and a marketing and branding We had to do the hard slog of buildethos similar to BlueScope. ing brand value. This is one of the Tata BlueScope’s CFO, Shyamreasons it so important to have a sunder, an Australian national, said strong, well-recognised local partner.” the move into South Asia has helped People often underestimate or BlueScope to increase revenue. misunderstand India’s strong busiHowever, he said operating in an ness culture, which Shyamsunder economy of rapid growth yet poor insaid is different to other South-East frastructure posed a few challenges, Asian countries. with the Indian market highly price He said English literacy, numerasensitive. cy, and engineering skills are strong “You can achieve premiums for in India. This gives India an edge in your product only after proving its 1value, 2 0and 1 5that - 0 takes 2 - 2a6long T 1 time 5 : 3in0 : 4 business 1 + 1 1 and : 0 0 entrepreneurialism.

“India has a strong, confident business culture. Even at the corporate leadership level, people are entrepreneurial in ways that surprise those from a western corporate culture. And Indian companies are prudent about investments,” Shyamsunder said.

“Australian companies have to be prepared to work through these issues to find a way forward that works for both sides.”

He also explained that the country has a hierarchical and paternalistic management style where the subordinates believe that being the boss means they need to be consulted on almost all decisions.

“Even highly qualified subject matter experts will always feel obliged to refer to their managers.

This takes some getting used to for Australian companies,” he said.

Shyamsunder also said that protecting IP, careful use of language, and respect for cultural and religious sensitivities are important in India.

“Having said all this, a well led and adaptive Australian company can overcome these issues and create important new markets and revenue streams in India.”

Part I of this article appeared in the March issue of Manufacturers’ Monthly.

[Alan Johnson is Manufacturers’ Monthly’s former editor.

He has researched and written about all aspects of the Australian manufacturing sector for over 25 years.]

Austrade 13 28 78 www.austrade.gov.au

manmonthly.com.au

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Manufacturing for the mining industry The construction and investment phase of the mining boom is now over. Rajiv Ghatikar explains how PLM can help heavy equipment manufacturers take advantage of the boom’s production phase.

ONLY a handful of years ago, debate about Australia’s ‘two-speed economy’ was rife, with the country’s manufacturing and mining industries battling each other for survival. In more recent times, these industries have become intrinsically-linked, and now rely on each other for success and longevity.

In five years time, the real value of mining production is expected to rise 33 per cent, therefore accounting for 12 per cent of the national economy, according to a report from BIS Shrapnel called Mining in Australia 2014 to 2029.

Local manufacturers are uniquely placed to ride this growth wave by getting behind our mining industry, and working with our mining counterparts to deliver a new generation of heavy equipment to cater for the forthcoming ‘production boom’, delivering machines that meets the highest possible standards and offer unrivalled levels of performance and reliability.

But in order to do this, heavy equipment manufacturers would do well to review their operations, and take the steps necessary to ensure they can meet the growing demands of our mining operations.

In short, manufacturers need to prepare for the onset of a mining production boom, in which only the strong will survive.

Challenging conditions Today’s manufacturers operate in an extremely challenging business climate characterised by price competition, a high Australian dollar, soaring production and material costs, and weakening growth in export demand.

According to the Australian Bureau of Statistics’ most recent gross domestic product (GDP) data, the average contribution by manufacturing sectors across the board dropped steadily from 2005 to 2010.

In terms of our manufacturing industry’s activity, the Australian Industry Group’s seasonally-adjusted performance of manufacturing index (PMI) shows a constant decline throughout 2014.

Certainly, it is a challenging age for manufacturing. However, a number of businesses working in sub-sectors of the manufacturing industry have managed to

Unique opportunities Since the start of Australia’s mining boom, the demand for heavy equipment has been rising. Manufacturing for mining has long been identified as a prime opportunity for local companies, due to their close proximity and inside knowledge of the sector’s requirements.

Though the sheer size of the mining blow-out in Australia has lead to an inevitable settling of the market, economists are predicting a new growth phase will ensue, bringing with it some unique opportunities for local manufacturers.

To illustrate, BIS Shrapnel’s Mining in Australia 2014 to 2029 outlook predicts investment in new mines will slump 40 per cent over the next four years; however, the report also claims that though investment and construction are set to drop, production is expected to rise. This production swell will create economic headwinds, opening-up opportunities for operations and maintenance, says BIS Shrapnel.

Challenges retain their levels of output and activity during this time, with others achieving growth.

These businesses are at the mercy of a fickle trading climate, however managers can undergo preparations to help cushion vulnerable business models and strengthen them for future success.

Now more than ever before, companies must find ways to identify opportunities –

“

achieve the elasticity required, including production equipment and management systems designed specifically to help maximise competitiveness amid today’s unique operating climate.

The Australian manufacturing industry is on the cusp of change. A growing number of forward-thinking companies are beginning to streamline their business practices, shifting their focus towards the

PLM integrates the core processes in product manufacturing... for now and for the future. This includes making some extremely difficult decisions about what to cut, what to keep, what to fix, and what to grow, and also understanding the concept behind short-term outlays leading to long-term growth.

Most of all, companies must build resiliency in to their business models. Many manufacturers are already looking at new technology and software to help them

production of high value-added products and solutions.

Regardless of the sub-sector in which they operate, this new breed of manufacturers all have something in common: they recognise that adding value means becoming sustainable, rather than simply making profit. Their return is adjusted for risk, with long-term growth the goal.

As with any niche business sector, manufacturing for the mining industry has its own special challenges. Mining organisations require the best-quality tools and equipment, which are able to be supplied and maintained with the quickest possible turnaround times. Since mining is such a fast-moving industry, customers are generally at the bleeding-edge of technology adoption.

Heavy machines for mines must be high-performing, safe, comfortable and reliable, and reduce the end user’s cost of operations. Customers demand innovations such as hybrid drive trains to meet emissions regulations, as well as hybrid hydraulics and telematics to improve work site efficiency and performance. Importantly, these machines must be configured to unique local specifications.

For heavy equipment manufacturers, this means their processes must be both efficient and cost-effective. Because of the sheer size of the machines in question, very large quantities of materials are required, meaning sourcing the right materials at the right price is extremely important.

Mining equipment is also highly-specific, and needs to be of the highest possible

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quality to meet demanding production expectations in harsh environments.

Therefore, manufacturers must implement the latest design and engineering innovations for both the products they make and the processes used to make them.

Manufacturers producing equipment for this industry require extensive capital investment in land and machinery – often more-so than manufacturers in other sub-sectors. Since businesses of this type are generally difficult to relocate, operations are generally set-up strategically in designated industry areas, with easy access to their customers. Oftentimes, manufacturers will need to operate various sub-factories around the country – and even overseas if they export – to cater for customer mines in different locations.

This kind of complexity – especially in highly-competitive global markets – drives the need for local, regional and global engineering and manufacturing departments to communicate and collaborate based on the same set of data, designs and manufacturing processes.

Collaborative manufacturing Heavy equipment manufacturers need to unify their global design, engineering and manufacturing teams on a common platform so they are able to work on the same requirements, models and manufacturing process plans, while having the flexibility to meet local requirements.

To accomplish this, manufacturing process planning and modelling must take place concurrently with product design and engineering, allowing for a true collaborative manufacturing process to take place.

By adopting a product lifecycle management (PLM) solution designed specifi-

cally for the needs of heavy equipment manufacturers, companies can build equipment with low cost of operation, along with improved productivity, reliability and profitability.

Similar to the way enterprise resource planning (ERP) software integrates a company’s core business to help them focus on effectiveness and simplified success, PLM integrates the core processes in product manufacturing from inception, through engineering design and manufacture, to service and disposal of manufactured products. Siemens PLM’s TeamcenterTM, for example, is one solution that caters for the individual needs of heavy equipment manufacturers. The core software offering includes: Engineering Process Management; Content and Document Management; BOM Management; and Portfolio, Program and Project Management systems.

Customers using PLM solutions like TeamcenterTM also have the option to add extra portals such as Requirements Management; Manufacturing Process Management; Service Lifecycle Management (SLM); and Supplier Integration.

Quality Management with CAPA; Product Cost Management; Sustainability and Environmental Compliance; and Systems Engineering tasks can also be integrated into the PLM system, allowing it to be tailored to suit the requirements of each individual manufacturing business.

For example, PLM could be used solely to integrate a heavy equipment manufacturer’s core manufacturing processes, or it could be extended to the supply chain level – integrating a company’s logistics and engineering support arms. In this way, PLM is especially useful for heavy equipment manufacturers that are required The production phase of the mining boom offers plenty for manufacturers.

In five years, the real value of mining production should rise by 33 per cent.

to perform high levels of maintenance and after-sales support.

According to BIS Shrapnel economist, Rubhen Jeya, manufacturers should start thinking seriously about implementing new strategies and technologies to prepare for the future.

In the company’s Mining in Australia 2014 to 2029 report, Jeya states: “Overall, contractors and suppliers to the mining industry should note that the end of the current boom in mining investment still presents opportunities in other parts of the mining boom, which are still unfolding: operations, production and maintenance.

And, eventually, global efforts to slash investment in response to currently weak

prices will itself help create the price conditions for new investment cycles in future.

The challenge is to make the right strategic choices today to take advantage of the opportunities as they come along, commodity by commodity, region by region, in what will remain a highly cyclical industry.”

It’s time to innovate: is your company up for the challenge?

[Rajiv Ghatikar is Vice President and General Manager, ASEAN/Australasia, Siemens PLM Software] Siemens PLM Software 1800 709 230 www.plm.automation.siemens.com

MA0415_044

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ManufacturingFOR MINING Solid prospects still exist in mining Despite the mining sector slowing, there are still many opportunities for ‘smart’ manufacturers.

Alan Johnson reports.

W

ITH commodity prices retreating from record highs, costs are suddenly important to mine operators again.

No longer is it all about adding incremental tonnes (or pounds or ounces) by whatever it takes.

The industry has stabilised as the wall of new supply has finally caught up with the ever rising demand for minerals, leading to prices settling at or near the top of the cost curve.

For most commodities and for most producers, pricing is not something that they can control, however what they can control are costs of production and productivity, and it is in these areas that mining companies are looking for ‘smart’ technology and equipment.

Robert Trzebski, Executive Officer of Austmine, Australia’s peak industry body for the METS (mining equipment, technology and services) sector, said that while many of the larger manufacturers are facing tough conditions, he said there are pockets of success, mainly smaller, specialist, innovative manufacturers.

“The key characteristic of these companies is flexibility, plus being reactive, adaptable, able to listen and work directly with their customers and being innovative with materials and design. In short they must be smart,” MM0 4 1 4 _ 0 0 0 _ I N D Trzebski told Manufacturers’ Monthly.

While the mining industry is facing some uphill problems, there remains opportunities both here and overseas for innovative, flexible manufacturers.

He said the other important areas are being international and having access to global supply chains.

“Not necessarily on a big scale but being able to collaborate with customers and understand their needs, and be able to easily and flexibly adapt to them.

“When you look at the local mining industry, there are now too many contestants for the jobs available, that’s why many of our members are looking beyond Australia.”

Trzebski said many of his asso1 2 0 1 4 - 0 3 - 1 3 T1 2 : 3 3 : ciation’s mining members are

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looking at the oil and gas sector.

“While that industry has its own problems, with prices falling, there are several very large projects being developed,” he mentioned.

Understandably, the lower Australian dollar is having a positive impact on Austmine’s members, which according to Trzebski is about the only positive thing that is happening in Australia’s mining sector right now. “Certainly not the commodity prices.”

He pointed out that a couple of 1 4 + 1 1 : 0 0 years ago, Australian manufacturers were still doing well because they were smart enough sourcing components and materials cheaply to compensate for costs and a high AUD. “With the dollar in the mid to high 70c range, it is much easier, especially exporting products and services.”

However, Trzebski explained that the price of the product is not always the deciding factor.

“For example, when we visited Russia and Kazakhstan six years ago now, it was made clear to us how important services are to the mining companies there.

“They could buy much cheaper products from China, however there

had been a change of thinking, a generational change, at the procurement, technical and engineering levels within the mining companies.

“One of the most important components of this change of thinking was regarding goods supply and the service level Australian companies could provide.”

That was six years ago, today Trzebski suggests manufacturers look at countries where the mining sector is continuing to grow, without any outside impact.

He says Russia is not a good news story at the moment, instead Trzebski suggests manufacturers focus on the Americas, from Canada down to Chile.

“These are the countries that have stability, large populations, and are fairly easy to enter.

“The US, for example, its coal industry is doing very well as a low-cost coal producer. They have reduced their labour and production costs, and are exporting a lot of coal now,” he said.

Trzebski says companies should also look at the Asian region, but they should be aware that some markets are more receptive than others.

He pointed out that Indonesia’s landscape has changed considerably of late, with the country changing its legislation forcing mining companies to process most of the ores in the country before exporting them. “This is a big opportunity for Australian manufacturers,” he said.

Trzebski said companies should also look at other newer markets with mining and oil and gas, included Myanmar (Burma), Vietnam, the Philippines and Malaysia.

Other markets he mentioned included emerging markets such as Mongolia and Kazakhstan, but said the Americas was the best place to go.

While Trzebski admits today is not a good time to enter the mining sector, he says you never know what manmonthly.com.au

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conditions will be like in say three or six months time.

“Commodity prices might go up in a few months’ time. For example, who would have predicted that oil prices would fall so much in just one year?

“My message to companies is to diversify, offer similar products to different industries, be smart and be different to your competitors,” Trezebski concluded.

Keech Australia One company that is doing well despite the slowdown in the sector is Keech Australia, a leading manufacturer of ground engaging tools for machines such as excavators, shovels, loaders and draglines.

Dr Herbert Hermens, CEO of Keech Australia, said the company is now getting its products into broader and broader markets, from Australia to all parts of the world.

“This is very exciting for us as it partially offsets the downturn which has been occurring in the market for the last six or seven months in Australia.

“Happily the downturn seems to be bottoming out now and we are starting to see some demand come back into the market locally, but certainly overseas it continues to look very encouraging for us,” Hermens told Manufacturers’ Monthly.

As with most Australian manufacturers, the lower Australian dollar has been a positive for Keech, though it is no magic bullet.

“It has come back almost 30% from where it was at one stage, and that is fantastic and gives us a much better competitive position, but what we have to remember is that Australia is still an extremely expensive manufacturing location.

“It was very difficult when we had parity with the US dollar, even at 77c it’s still a challenge,” he admitted.

The reason for Keech’s success is not

rocket science, the company plans to continue developing new products and is investing 7 to 12% of its revenue into product and production development.

“We are making better products all the time. We are developing new products and new methodology in making these products including taking costs out wherever we can and enhancing the quality and efficiency.

“We have put a lot effort into that in the past year or so, and have recently developed a new series of cast lips that go onto buckets used in the mining industry.

“The VYPR lip system is a great product, and because of our in-house prototyping capability, using 3D printing, we were able to go to the market, to interact with our customers, show them the various iterations of the lips.”

Hermens said feedback from customers here and overseas has been very encouraging, with an extension coming out in the next few months as well.

He said that following trials in one South American mine, for example, it has now changed 100% to the VYPR cast lip system.

“They cut the US-made plate lips out and installed ours and found the production costs on the bucket went down up to 25%. That’s a huge saving.

“We can’t promise that on every bucket, but we know we can get more ‘usable weight’ to ‘throw away weight’, meaning our lips last far longer.”

He said the uptake of the VYPR lip system, particularly in South America, has been very encouraging, and in Australia too.

Overall, Hermens said, exports were growing quickly with Keech now exporting well over 25% of production.

According to Hermens, the company’s considerable investment in R&D, and not being a ‘me too’ and >>

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Manufacturing FOR MINING >> just producing a lump of steel are the key reasons for Keech’s success.

“Today, customers don’t just call saying they want a point for their grader, now they are asking for a specific product.

“That is a massive change, turning a commodity into a specific product.

There is a lot of development work that goes into making that point, and to sell it by the kilo is underrating the quality of the product we produce.”

Hermens pointed out that Keech has a large number of engineers working for the Bendigo-based company, including a flow engineer and materials engineers, all working to make its products better.

“This is why the volume of the company continues to develop the way that it has,” Hermens concluded.

Summit Matsu Chillers Another company continuing to enjoy success in the mining sector is Summit Matsu Chillers, a leading Australian chiller manufacturer specialising in commercial and industrial air cooled and water cooled chillers.

Shane M A 0Carmichael, 9 1 4 _ 0 0the 0 _company’s PI E Group General Manager says busi-

46 APRIL 2015 Manufacturers’ Monthly

Key features of Summit Matsu’s mining chillers are that they are customised to specification, and containerised. ness is very good at the moment.

Carmichael says the main reasons “Because we make niche product, for the company’s on-going success is general upturns and downturns do being flexible, and offering a customnot have a huge impact on our busiised solution. ness.”

“What we need is to be a little bit Carmichael told Manufacturers’ smarter with our engineering, and produce a unique product that is cusMonthly that the position of the Austomised to the client’s requirements. tralian dollar has been helpful.

His advice for manufacturers ”The majority of our projects are thinking of entering the mining marlocal, however we have been awarded ket is to focus on engineering. several export projects recently “Strong is most 1where 2 0our 1 4competitive - 0 8 - 1 2pricing T 1 1 has : 1 8 : 3 3 + 1 0 : 0engineering 0 important when manufacturing for proved beneficial.”

the mining industry, it is a step above most other industries.”

Carmichael explained that most of the chillers the company manufactures are destined for the mining industry; around 80%.

Our biggest advantage, he said, is that the chillers we produce are modular, plug and play systems customised to the client’s specifications.

“Creating a dedicated packaged solution makes it easy for the customer to install and operate.”

He said the chillers are suitable for use in a wide range of applications including lubricant cooling, potable water, safety showers and even concrete mixing during construction.

Austmine 02 8310 0601 www.austmine.com.au Keech Australia 03 5442 5468 www.keech.com.au Summit Matsu Chillers 1300 244 553 matsu.com.au

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Energy MANAGEMENT Energy management and productivity Improving energy productivity, including energy efficiency, is an increasingly significant factor in boosting the overall productivity of the economy.

I

NTRODUCING robust energy management systems and ways to identify performance improvements can drive significant cost savings, competitive advantages and mitigate energy price volatility.

According to the ClimateWorks Australia report Australia’s Energy Productivity Potential (2015), energy costs increased by 67 per cent in the decade to 2012, reaching $120 billion in 2011–12.

Companies with an in-depth understanding of their energy use and systems to manage it, have demonstrated a range of benefits, such as reduced energy expenditure and maintenance costs, good reputation, and less employee turnover.

A report by the International Energy Agency (IEA), Capturing the Multiple Benefits of Energy Efficiency (2014), includes a chapter on industrial sector impacts. The IEA notes that, while industrial energy efficiency is improving at the global level, large potential remains untapped. By understanding and quantifying these benefits, the business case for energy efficiency is strengthened.

Best practice An integrated approach across systems and processes will improve outcomes. Best practice includes: • commitment from executives • energy efficiency assessments • integration into existing business systems • company-wide involvement • measurable goals • monitoring and reporting performance Research by ClimateWorks Australia (special report on industry for the Tracking Progress Towards a Low Carbon Economy (2013) series indicates three practices as being most influential on energy savings: • regular analysis of energy data • inclusion of energy efficiency in corporate policies and operational guides 48 APRIL 2015 Manufacturers’ Monthly

It’s important to understand how the energy market operates.

• senior management oversight of energy Companies that implemented these practices achieved 300 per cent more energy savings than those that didn’t.

It’s also important to understand the way the energy market operates and the components of your business’s energy bill, including the tariff you are being charged, your demand profile and the total cost of energy you are using.

See the Energy Efficiency Exchange website for more information on energy management, including news, resources and case studies.

Opportunities Once you understand how you use and pay for energy, you can focus on investigating the best available opportunities for savings. These range from low-cost to major investments.

Consider opportunities across the processes, systems and technologies in your business. Optimise or upgrade equipment and processes, improve waste-heat recovery or collaborate with supply chains. Innovations such as LED lighting, electric vehicles, building design and 3D printing are dramatically reducing energy

requirements across sectors.

Look at your approach to energy procurement. With detailed data from your retailer and analysis from your own energy audits on how and when you use energy, you can negotiate the best deal from providers.

Use demand side management strategies to reduce energy costs. Adjust activities to lower peak demand or flatten your load profile to reduce your network costs.

Collect and analyse energy data.

Metering and control technology systems help reduce consumption and identify efficiency opportunities.

Systems optimisation takes management of energy data further by making changes to processes in real-time. It automatically takes into account a range of complex parameters, such as variable material feed rates, temperature, commodity prices and customer demand.

Resources and initiatives There is a range of resources and initiatives that can support your business in looking at its energy use, management strategies and actions.

Energy Efficiency Exchange website – This features detailed information on energy efficiency best-prac-

tice across industrial sectors for large energy-using Australian businesses. EEX includes key resources and case studies from Australia and overseas. It highlights a range of manufacturing sectors, including food and beverage, chemicals and plastics, pulp and paper. Also covered are technologies relevant to the manufacturing sector, including motors, compressed air, boilers, pumps and fans.

Energy Efficiency Information Grants programme – Administered by the Department of Industry and Science, the Energy Efficiency Information Grants programme assisted industry associations, including in the manufacturing sector, to develop practical energy-efficiency information for small to medium-sized enterprises (SMEs). Organisations which have taken part include include Australian Food and Grocery Council, Australian Foundry Institute, Plastics and Chemicals Industry Association, and the South Australian Wine Industry Association.

Entrepreneurs’ Infrastructure Programme – The $484.2 million Entrepreneurs’ Infrastructure Programme is the Australian Government’s flagship initiative for business competitiveness and productivity at the firm level. The programme delivers services to small and medium business through three elements: Business Management, Research Connections and Accelerating Commercialisation.

More in-depth face-to-face assistance is also available from AusIndustry’s national network.

Industry Skills Fund The Industry Skills Fund is a key element in the Australian Government’s Industry Innovation and Competitiveness Agenda. The fund will provide up to 200,000 training places and support services over four years.

EEX eex.gov.au manmonthly.com.au

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How to cut your power bills Does your business spend more than $30K per annum on electricity? Are your stand-by generator assets rarely used? Here’s a way to cut your energy bills and improve your bottom line.

F

OR manufacturing businesses with equipment and plant that consume significant amounts of electricity, electricity ends up as a major operating cost.

Short of reducing production, most businesses would appear to have little control over the cost of their electricity.

One innovative company has taken advantage of a new way of purchasing electricity and can control energy costs to significantly reduce the energy component of electricity bills.

In fact, using this method, they can typically

by M A 0reduce 4 1 5 electricity _ 0 0 0 _ bills KEM 10 - 40 per cent.

The traditional approach Most businesses purchase their electricity from an energy retailer via a standard retail contract. The retail contract usually contains standard peak, off-peak and shoulder rates.

In order for retailers to supply their retail customers with electricity, retailers purchase the electricity from the variable price wholesale electricity market. The cost is at the prevailing spot rate and then is charged onto the customer at fixed retail contract rate.

Traditional retailers manage 1the 2price 0 1 risk 5 - of 0 3purchasing - 2 4 T 0 at 9 the : 4 9 : 5 9 + 1 1 : 0 0 variable wholesale market by using The use of electricty to power equipment can mean large power bills.

Stop Guessing - Start Knowing Introducing Kemppi Arc System 3 for Total Welding Quality Management Created specifically to improve welding quality management, operational productivity and reduce risk, the Kemppi Arc System 3, is a modular software product system that can be tailored to your needs. It offers a choice of Arc modules that work seamlessly together or which can be integrated with your existing welding systems to let you monitor and control the quality of your welding operations to achieve welding excellence.

With Arc System 3, every weld is traceable, including the welder, his qualifications, welding procedures, all settings and hardware that is used. It allows you to effectively plan, monitor and control your entire welding production process to ensure the desired quality is achieved and to minimise risk. Welding parameters can be specified and any deviations by the welder can be altered during the welding process to meet the required quality and eliminate the need for rework.

Plus, Arc System 3 automatically collects and analyses data, and outputs reports and collates welding quality documentation for complete peace of mind.

A part of Total Welding X Management (TWXM), the Kemppi Arc System 3 lets you manage and control critical welding operations like never before so that you know your welding operations meet all the necessary requirements. For more details call 1300 Go Kemppi or email david.green@kemppi.com

www.kemppi.com

manmonthly.com.au

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Energy MANAGEMENT Energy & Power Plants

Design for Australia Made in Australia exchange traded electricity derivatives (insurance products). This hedging cost, along with any risk premiums and margins is passed onto customers through their fixed energy contract rates.

The opportunity

Bestech Australia U14, 44 Garden Blvd

MEL.: 03 9540 5100

Dingley VIC 3172

SYD. : 02 9624 4233

Enquiry@bestech.com.au www.bestech.com.au 50 APRIL 2015 Manufacturers’ Monthly

Progressive Green Energy (PG Energy) is a specialised electricity retailer, offering wholesale market access to large electricity users within the National Electricity Market.

The company can provide access to the wholesale electricity market - the same market that the electricity retailers use to purchase electricity before on-selling it to you. This represents a significant opportunity for those in the manufacturing sector to reduce electricity costs. It’s simple and cost effective.

The company’s sophisticated management tools and tailored energy contracts provide innovative solutions with realistic returns. This outlook is simple - to provide a unique service, catering to large market customers and small capacity generators over and above the options currently available in the market. Services offered encompass

both the trading of electricity and regulatory offsets, including Green Power and environmental certificates.

PG Energy provides energy agreements for both hedged and direct wholesale pool purchasing consumers.

Options include benefits tailored to suit the operation of the particular site, for example, load shedding capability and partial hedging.

PG Energy is an innovative electricity retailer that has recognised the opportunity to save customers money by providing direct access to the wholesale market via its Managed Pool Purchasing product. PG Energy offers a unique end-to-end management solution that includes a comprehensive 2-way notification and automated remotely controlled load management system.

The solution keeps sites informed of market price events. This allows load to be managed at the right time (i.e. to shed load) and/or the best time to use load (at low prices), which is an essential element for purchasing from the wholesale market.

Progressive Green 1300 08 06 08 www.progressivegreen.com.au manmonthly.com.au

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Clean water. Clean image.

See how we work with our clients and the community on the challenges of CSG at veolia.com.au/kenyaplant

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SPONSORED CONTENT

Turning the tide for our manufacturing future MANUFACTURING has long made an important contribution to Australia’s economic development. A productive manufacturing sector is crucial in maintaining a thriving economy for Australia. The success and sustainability of the Australian manufacturing industry (and the jobs it supports) relies heavily on our ability to compete both locally and internationally.

Many of the challenges impacting Australian manufacturing today are not new – high costs, rigid industrial relations laws and, of course, the enormous growth in competition from off-shore manufacturers.

The perception that offshore fabrication is cheaper has grown significantly over the past 10 years.

However, there are many examples where this has not proved to be the case. Once the expense of third party quality systems and inspection, time over runs and rework to make the components fit for service are included, the overall project cost can often far exceed that of locally sourced product.

Furthermore, whole of life maintenance on-costs are also likely to be higher.

We are not asking for Australian companies to receive special treatment, even though that is commonplace elsewhere in the world, but simply for a fair assessment to be made of competing tenders.

Welding is a key component of all structural and pressure vessel manufacturing. Poor quality procedures can severely impact the integrity of a component and its ability to comply with the requirements of a major infrastructure project. To this end the WTIA is preparing a set of guidelines explaining what welding specifications are to be included in contracts and how to assess fabrication bids so that the delivered product meets the desired criteria.

We also need to be clear that much of Australian fabrication is not internationally competitive.

In a league table of nations, with companies qualified to the international welding quality

management standard ISO 3834 (AS/NZS 3834), we are very near the bottom. Excuses relating to cover under ISO 9001 (welding is a special process under this standard and as such may not be extensively assessed) and the additional cost do not wash when it comes to winning work. Besides, our experience with companies that are certified is that production costs are lower, leading to improved competiveness and profit.

To assist asset managers, contractors, manufacturers and fabricators, WTIA has established a new service to assess compliance and advise companies on the easiest way to achieve certification. As an additional service we will also conduct compliance and conformity assessment audits on behalf of clients.

If Australia is to grow its welding capability and in turn its international competiveness then we need to improve our performance at all levels. We have some highly qualified and skilled welding professionals but without a steady flow of fabrication work they will disappear overseas or into other trades.

In order to secure the future of manufacturing in Australia, we need determined action from our governments, industry leaders and from the communities who depend on the strength of the manufacturing sector for their own future.

The WTIA is committed to ‘Onshoring’ and to improving the competiveness of Australian manufacturing. Please join us on the journey.

Welding Technology Institute of Australia

T: 02 8748 0100

E: info@wtia.com.au

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Innovative Protective Coating for Welding

LOCTITE® SF 7900 Ceramic Shield Saves Time and Money • Ceramic, dry film, silicone-free protective coating • Spray coating dries within 5–10 seconds • Increase productivity by up to 7% • Reduce running costs for consumables by up to 40% • Eliminate costs for cleaning equipment Loctite® SF 7900 is a unique dry film that effectively protects welding equipment against metal spatter – up to 8 hours, without the need for reapplication. Frequent cleaning of the equipment is no longer necessary and, with downtime being eliminated, costs are reduced and productivity is enhanced.

For more information, visit www.loctite.com.au/sf7900 or contact the Technical Hotline 1300 885 556.

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SF7900_MM_235x297_v2.indd 1

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Welding The attractions of weld management systems Latest systems offer fabricators and manufacturers the opportunity to reduce costly rework and improve overall productivity. Alan Johnson reports.

W

ELDING is one of those “special” processes, where it is impossible to make a complete verification of the welded joint without having to destroy it. To examine the mechanical properties of a weld, it is necessary to take samples from the welded product, making it vitally important to build quality into the welding process right from the beginning, including having a fully qualified welder, using a quality welding machine and consumables.

But that is just the start, to ensure the quality of welded products and to optimise productivity, the whole welding process must be controlled from the very start.

To take all the welding aspects affecting quality into consideration, fabricators and welding shops are recommended to implement a quality assurance system. The standard ISO 3834 sets out the requirements for manufacturers to meet in order to apply good practice to their welding operations.

According to Anssi Rantasalo CEO of Kemppi Oy, based in Finland, weld quality and weld management are becoming increasingly important for fabricators and manufacturers around the world.

“There is a trend globally towards standardisation to ISO and other standards organisations. It has been clearly identified as a key area for many major industries,” he told Manufacturers’ Monthly on his recent visit to Australia.

Rantasalo says the energy sector and the off-shore oil and gas industry have been driving this development globally.

Locally, David Green, Kemppi Australia’s Managing Director, explains that Australia’s structural welding in the construction area is covered by Australian Standards 1554 suite of Standards.

He points out that under the Standards, there is specific mention 54 APRIL 2015 Manufacturers’ Monthly

Poor quality welds, coupled with expensive rework, could be a thing of the past. that a welding management system must be in place, and secondly that this welding quality system should conform to ISO 3834.

“Companies should know this already; however it’s quite a surprise to us that many don’t,” Green told Manufacturers’ Monthly.

Welding productivity Rantasalo says that while many manufacturers talk about the need to improve the productivity of their welders, he questions how much do they really know about productivity.

“It’s not until companies start measuring it, and making it transpar-

ent and visible, that’s when they can start to tackle the problem.

“If we talk about a simple parameter such as ‘arc-on-time’, people tend to overestimate the productivity from the arc burning point of view,” he said.

When asked how much time do companies spend welding a day, he said the answer is normally around the 30% mark. “However when we start measuring, we normally find the figure is actually around 8 to 12%.”

While the first reaction is ‘my welders must be lazy, they are not working’, Rantasalo said this is often not the case. “Using the data from

a welding management system, we often find production bottlenecks, which are often the main problem.”

He explained that weld management systems allow the welder to communicate the reasons for not welding, such as consumable not being available, no access to the area to be welded, or waiting for the parts to be ready for welding.

“It’s not just taking the welding process under control; we are talking about recognising any bottlenecks in the manufacturing process,” Rantasalo said.

Green said with weld management systems there are many opportunities to improve productivity, and cut costs.

“These include the speed of doing the actual welding, the speed of collecting the documentation, which is often required to be delivered to the end customer, and of course the major one is the reduction in rework of any defect welds. This is because companies are seeing the defects in real time, with people taking action around that.

For a typical organisation, Green says the cost of these areas is far more than the investment costs of a welding management system.

“We are yet to see a system where the payback is more than nine months.

“Of course it depends on the industry and the company involved, but a very busy NZ fabricator, operating a three shift operation, recorded $750,000 savings in rework costs, plus saving $250,000 in documentation costs, and the avoidance of penalties.

Green explained that a lot of these companies are on liquidated damages and have to hand over the complete portfolio of documentation to complete the project.

Management systems With the recent release of Kemppi’s Arc System 3 welding management system, Rantasalo admitted there manmonthly.com.au

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KEY AREAS OF ADVISORY EXPERTISE ARE: • • • • • • • • • • • • • • • • •

Welding procedure development – pWPS, WPQRs, WPSs Welding coordination and management systems Material Performance and weldability Welding processes and related equipment Welding Health and Safety Failure Investigation Expert Witness in Welding and related matters On-site welding technology assistance On-site auditing of welding quality systems Welding Codes and Standards Inspection and Testing Non-destructive testing Mechanical Testing Heat Treatment in Welding Welding Quality Management to ISO 3834 Provision of welding specialists (IWE, IWT, IWS) for site work Pipelines- in-service welding, repairs, hot tapping etc.

SERVICES AVAILABLE THROUGH OUR NATIONAL AND INTERNATIONAL TECHNOLOGY SUPPORT CENTRES NETWORK • • • • • • •

Specialised welding and associated technologies; i.e Laser, ultrasonic peening, underwater welding R&D –Application of technology Engineering Critical Assessment Fracture Mechanics Structural and Pressure Equipment Design Finite Element Analysis Weld cost estimating Life estimation

TRAINING • • •

Training leading to formal International Institute of Welding (IIW) Qualification and Certification Training leading to WTIA Qualification and Certification Informal Training Courses

Call WTIA today and find out how we can help you P: 02 8748 0100 E: info@wtia.com.au

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Welding >>

are other weld quality management systems on the market, such as NDT, web cams, and visual control, but said they are mainly testing by example, which leaves a lot of potential risks.

He explained that the Arc System 3 is a modular suite of software-based solutions designed to improve welding quality management and operational productivity, whilst reducing operating cost and risk.

“Users can implement the various modules according to their needs to effectively monitor, control and manage the quality and efficiency of their welding operations while capturing relevant documentation.

“The system traces every weld, records welder qualifications, welding procedure specifications (WPS), all materials and operational welding parameters. Once welding parameters are set, any deviations by the welder are identified in real-time and can be altered to eliminate the need for rework,” Rantasalo added.

“Poor quality welds, coupled with costly rework, are the bane of all fabricators and manufacturers.

But now, the tools we are bringing to the market will change the game dramatically.

“All of a sudden we have 360° view of the welding operation, where every piece of information is recorded and compared against the standards and the WPSs. Nothing goes unnoticed anymore.”

However he admitted welding is a complex process and NDTs and other test methods will still have a role, especially when a welding management system reports a deviation, and needs to be further studied and explored.

“But saying that, this is still a remarkable step forward. All of sudden we are moving from testing by sample to actually covering everything of the welding process.”

Rantasalo pointed out that the best way to prevent welding mistakes is to prevent them happening in the first place, with all the elements in place; the welding process, the design of the structure to be welded, qualified welder to the required level, welding consumables, the gas and the welding equipment. “They all play an important role.”

He explained that the welding management system can be applied to single and multi-machines, and multi-site operations both within a country and across borders, and man-

Air purifying respirator welding helmet LINCOLN Electric has released the Viking PAPR (Powered Air Purifying Respirator) 3350 welding helmet designed to provide filtered air to the operator’s breathing zone.

The PAPR is a complete powered system that draws air from the environment through a HEPA filter located on the belt and delivers filtered air in the breathing zone within a premium-level Viking autodarkening welding helmet.

This model, which offers dual airflow speed, is powered by a battery that can last a full eight-hour shift without interruption.

A patent-pending adjustable baffling system inside the helmet directs airflow away from the eyes to avoid dryness.

Lincoln Electric 1300 728 720 The helmet directs airflow away from the welder’s eyes to avoid dryness. www.lincolnelectric.com.au 56 APRIL 2015 Manufacturers’ Monthly

aged from a single central welding co-ordination point.

The system is suitable for both manual and automated welding operations, and can be networked, such as where the main contractor is reliant on several subcontractors.

“Previously it was almost impossible to monitor and manage the weld quality of subcontracters, but with this system users have everything required.

Whether it is one country or on five different continents, it doesn’t make any difference.

“Having the welding data there, the main contractor can follow the progress of the project in different sub contracting companies, with the information provided by our system following the progress of all the welders on the project.”

Green explained that the system automatically collects and analyses big data information for users so they know at a glance how the welding operation is proceeding and if any adjustments need to be made, saving time and money.

“Plus, it can collate welding documentation automatically to significantly reduce the time and cost

associated with post welding administration,” he said.

The welding management system is modular by nature and can be tailored to each organisation’s specific requirements, plus features such as NDT, welder maintenance and power source calibration/validation scheduling can be built-in as required.

The system also supports the operation of a formal welding quality management system, stated as a requirement under AS/NZS1554.1:2014, and specifically the quality management requirements set out in AS/ NZS ISO 3834-2, as recommended particularly for structural fabricators requiring 3rd party approval under the AS1554.1 standard.

“Up to now, welding processes in critical operations have relied upon the integrity of the welder plus retrospective welding inspection to guarantee welding quality. The Arc System 3 revolutionises all this.

It factually confirms that all welds are as they should be, and delivers complete peace of mind,” Green concluded.

Kemppi Australia 02 8785 2000 www.kemppi.com

Portable TIG/stick welding machine WIA (Welding Industries of Australia) has released the portable Weldarc 180i DC Stick and DC TIG welding machine designed for industrial users. Weighing just 6.5kg, the compact 180A machine offers the user the portability and performance required for onsite and field maintenance applications.

But unlike some other portable machines on the market, WIA’s Weldarc 180i suits long extension leads often found in the Australian workplace, and will keep welding successfully despite a voltage drop. The machine’s built in Arc Force feature, constantly monitors the arc voltage and will boost output if low arc voltage occurs.

The Weldarc 180i is also tolerant of unconditioned power from generators. It has been optimised and tested for compatibility with appropriate portable generators.

Another key feature of the Weldarc 180i is the machine’s built-in “hot start” feature, which when in manual arc mode, offers the welder even better arc starting.

The machine suits 2.0-4.0mm electrodes

The 180A machine weighs just 6.5kg. operating from a 15A 240Vac supply, and is suitable for use in a wide range of industries, including manufacturing and mine maintenance, plus the building and construction industries.

WIA 1300 300 884 www.welding.com.au

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NMW Preview 26-29 MAY 2015

Manufacturing’s future on show in Melbourne National Manufacturing Week (NMW) showcases the latest products and constantly evolving technologies in the expanding manufacturing market. NMW 2015 takes place in Melbourne from 26-29 May. Here is a selection of what visitors can expect to see this year.

1

AutoFast Australia – Stand 5508

2

Ensitech – Stand 4523

At NMW 2015, AutoFast Australia will be The TIG Brush Stainless Steel exhibiting its AutoFast Riveting System, Weld Cleaning System creates featuring semi-automatic rivet guns a unique combination of designed for rapid, low to high volume electricity, heat and chemistry installation of break-stem rivets. to deliver results in weld With a cycle rate of one rivet per cleaning and metal surface second, ergonomic design and generous finishing. Its proprietary, conductive brush applies cleaning fluid to the work surface, waste collection system, it allows users to producing an electro-chemical cleaning action with fast results. Driving the TIG Brush is build more, quicker and for less.

Ensitech’s Dynamic Power Transfer. This patented technology maximizes the efficiency Using the system, customers can of heat transfer to the work surface and ensures optimum performance in demanding achieve up to a four-fold increase operating conditions. in productivity as well as improved At the same time, Ensitech’s low-toxicity fluids are custom-designed to maximise end-product quality and reduced installation costs. user safety and protect the environment. This powerful combination is the result of many Since arriving on the market in 2011, AutoFast Australia has attracted customers years of product development, based on industry requirements. Ensitech’s research and in sheetmetal invests continuously in innovation as well as independent testing M A 0 4 manufacturing, 1 5 _ 0 0 0 _steel T Rframe O -construction, 1 2 0 aircraft 1 5 - manufacturing 0 3 - 3 0 T 1and 0 : 5 0 : 5 development 0 + 1 1 : 0division 0 maintenance and solar energy generation to name a few. and validation of the company’s products.

2

1

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58 APRIL 2015 Manufacturers’ Monthly

manmonthly.com.au

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26-29 MAY 2015

3

Melbourne Centre for Nanofabrication – Stand 5410

3

MCN is a world-class nanofabrication Centre, combining cutting-edge technologies with the skills and expertise of staff and associates.

This year at NMW, MCN will feature a range of exciting devices and samples demonstrating its unique combination of capabilities.

Included in these exhibits are working microfluidic devices, DRIE patterned wafers, sensors, synthetic diamond structures, 3D printed parts and 3D profilometer samples, amongst other items.

Staff will be on hand to answer any questions you might have about your project or their capabilities.

4

Moreton Bay Regional Council – Stand 5014

The Moreton Bay Region provides a balance between business and lifestyle. The Council is keen to seek investment into the region.

Strategically located to the north of the Brisbane CBD the region provides direct access to Brisbane International and Domestic Airports, the Port of Brisbane and to the Australian Trade Coast enabling businesses to access both domestic and international markets and do business with ease.

The region has a rapidly growing population, supported by sustainable and planned growth with the availability of high quality, affordable industrial and commercial sites. It aims to provide capital city convenience without capital MA 0 4 1city 5 costs. _ 0 0 0 _ FLI 1 2 0 1 5 - 0 3 - 2 3 T1 3 : 2 4 : 3 9 + 1 1 : 0 0

4

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Manufacturers’ Monthly APRIL 2015 59 3/12/15 9:10 AM

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NMW Preview 26-29 MAY 2015

5

NOT ALL BODIES ARE CREATED EQUAL

Nitto Kohki Australia – Stand 4315

Nitto Kohki Australia, maker of quick release couplings, magnetic based drills and annular cutters will be showcasing the CLA-2720, a ‘World First’ 7kg Cordless Magnetic Based Drill at NMW. According to the company, the unit’s compact size, lightweight body, high performance and comprehensive safety systems will impress the most experienced steel fabricator or engineering specialist.

Nitto Kohki Australia is the Australian Importer and Distributor of Nitto Kohki, Kuken and Cembre Railway products. The company also operates Nitto Kohki Australia’s Manufacturing Division which produces the OZBROACH HSS Annular cutters.

6 Product

Hardness/HBW

Thickness

Hardox HiTuf

310 - 370

40 -130mm

Hardox 450

425 - 475

3 - 80mm

Hardox 500

470 - 540

4 - 80mm

Hardox 550

525 - 575

10 - 50mm

Hardox 600

560 - 640

8 - 50mm

Hardox Extreme

625 - 700

8 - 25mm

Domex 700

750 - 950 MPa

2 - 10mm

Equipment and wear parts made with HARDOX wear plate is your guarantee of outstanding resistance to impact and extreme abrasion. That translates to maximum service life, less risk of breakdowns and enhanced productivity.

Renz Australia – Stand 5118

Renz Australia is featuring the HSM Profipack which converts and recycles unwanted waste cardboard and cartons into practical, useable packaging material which, for example, can replace foam beads and bubble wrap.

Apart from the obvious environmental advantages, significant savings are possible due to a reduction in waste collection costs and the diminishing requirement to purchase additional packaging material.

The packaging produced is extremely durable and feedback has shown that cardboard processed through the Profipack can be reused up to six times before requiring final recycling.

7

Techweigh – Stand 5813

Tecweigh, specialists in continuous weighing will have working examples of their latest products on show at NMW. These include the S5A volumetric auger feeder, WF10 weigh belt feeder, and WY15 conveyer belt scale.

The company will also be introducing the new GRC3000 loss in weight gravimetric feeder system.

Visitors to the stand can talk to a continuous weighing specialist about weigh belt feeders, conveyer belt scales, volumetric feeders and loss in weight feeders.

They can also test out the company’s ruggedly constructed products which can be found in diverse areas, such as mining, quarries, dairy, food, chemical, pharmaceutical and the plastics industries.

5

Because you ask a lot of your equipment, get the wear plate preferred around the world - HARDOX, the number one choice in abrasion resistant steels.

Its hardness, strength and toughness make it unlike any other steel on earth. It’s the highest industry standard for applications such as excavators, tipper bodies, conveyors, crushers, mixers, barges and more.

SSAB Swedish Steel Pty Ltd Office & Stocks Perth Brisbane Melbourne & Adelaide

6 :+61 8 9353 2146 :+61 7 3891 3533 :+61 3 9529 5759

E-mail: australia@ssab.com www.ssab.com www.hardox.com

7

SSAB is a Nordic and US-based steel company. SSAB offers value added products and services developed in close cooperation with its customers to create a stronger, lighter and more sustainable world. SSAB has employees in over 50 countries.

SSAB has production facilities in Sweden, Finland and the US. SSAB is listed on the NASDAQ OMX Nordic Exchange in Stockholm and has a secondary listing on the NASDAQ OMX in Helsinki.

60 APRIL 2015 Manufacturers’ Monthly

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What’sNew Infrared pyrometer E2T (A division of LumaSense Technologies) has launched an advanced infrared pyrometer for sulphur reactors and other high temperature furnaces with a temperature range of 350-2000°C. The PULSAR 4 features single channel measurement for gas or refractory measurements and a two channel advanced version with simultaneous measurements of refractory and gas temperatures with the additional feature of a SMART FMA (Flame Measurement

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Hi-Tech partners with Creaform

Algorithm). It also has Explosion Proof Certification (IECEx, ATEX, FM and other), versatile power supply options (24V DC & 240V AC), analogue and digital outputs, 60°C ambient without cooling and up to 93°C with optional cooling base.

Additional standard features include instant or average readings and separate channel analogue outputs with alarm relay set points. Applications for the infrared pyrometer include refineries, gas plants and petrochemical installations.

W & B Instruments 03 9729 2112 www.wandbinstruments.com.au

Features single channel measurement for gas or refractory measurements.

Hi-Tech Metrology and Creaform have formed a partnership to distribute and support the range of Creaform portable 3D measuring solutions in Australia.

The Creaform range of products includes the Handyscan3D, GO!Scan3D, MetraScan3D, MaxSHOT3D and HandyProbe. They have earned an international reputation for combining portability with genuine metrology levels of accuracy.

The products are used worldwide by clients from various industries including automotive, aerospace, manufacturing, consumer products, NDT, heavy industries, mining and power generation.

Hi-Tech Metrology is well experienced in the portable scanning business with clients across Australia and New Zealand.

National Sales Manager Craig Leckie commented – “Now with our partners Creaform in Australia, we have access to the widest possible range of portable measurement solutions in the market.

“The combination of Creaform and Hi-Tech will give our customers

Handyscan3D is included in the range. unprecedented opportunities to improve their productivity, enhance product quality and reduce operating costs.”

Hi-Tech Metrology 03 9702 3911 www.hitechmetrology.com.au

Strain gauge measuring amplifier Silicone tubing STOCKCAP has introduced a new range of silicone tubing to its powder coat masking product offering.

Natural in colour and designed to prevent contamination of the paint line, the silicone tubing is suitable for temperatures up to 316°C. The silicone tubing is available from stock in ID sizes 4.75, 5.54, 5.94, 6.35, 7.14, 7.92, 9.53, 11.1 and 12.7 mm in roll lengths of 30.48 metres as well as ID sizes 15.88, 19.05, 22.23 and 25.4 mm in roll lengths of 15.24 metres.

Ideal for masking long bolts, tubes, pipes or pins where conventional silicone caps are too short, the silicone tubing is the latest addition to the company’s product range of high temperature silicone caps, plugs, tapes and discs.

GLOBAL test and measurement specialist HBM has released the MX1615, a strain gauge measuring amplifier which is designed to provide exact results for stress loading.

The device is part of HBM’s QuantumX measuring system. It features universal strain gauge inputs, which enable it to cover the full range of tasks in strain gauge measurement.

The high channel density means 16 strain gauge channels can be connected to it in a various configurations including fullbridge, half-bridge or quarter-bridge, in a 3-wire and patented Kreuzer 4-wire circuit.

And all channels can be used to record standardised voltage signals of ± 10 V as well as temperatures with a Pt100 sensor.

HBM 02 9889 8070 www.hbm.com

Ideal for masking long bolts, tubes, pipes or pins.

Stockcap 1800 003 211 www.stockcap.com.au Suitable for myriad industries.

manmonthly.com.au

Manufacturers’ Monthly APRIL 2015 61

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The last WORD Benchmarking ourselves against the best Increasingly, Australian manufacturing operations are going to have to compete globally. For Diageo Australia this is not a problem, because when it compares itself with the rest of the world it ranks very well. Matt McDonald reports.

W

HEN optimists look decades into the future they see Australia with a solid manufacturing sector. They see effective, innovative businesses that use their expertise to make products that the world wants.

So what needs to be done to make this glass half full vision a reality?

“I think one thing that’s really important is to benchmark ourselves globally as a country,” David Cutter, President, Global Supply & Procurement at global beverage alcohol maker Diageo told Manufacturers’ Monthly.

Diageo produces several well-known brands, including Johnnie Walker, Smirnoff, Guinness, and Bundaberg Rum. Cutter has a worthwhile perspective on this country’s manufacturing sector. An Australian, he has spent the last ten years working overseas and is now based in Edinburgh with Diageo.

And he comes across as one of those optimists.

“If I think of the business here [Diageo] or any of the previous other Australian organisations I’ve worked for, when you have a mindset that operations or manufacturing is a privilege not a right that then allows you to make sure you focus and deliver on a global scale,” Cutter added.

He said if Australian businesses drive themselves against global KPIs they have a good chance to be successful.

“When they don’t I think that opens up the opportunity to move local operations and manufacturing out to other parts of the world.”

So that’s what Diageo does. It measures its Australian operations against global KPIs. And when it does, Cutter said, it ranks in the top ten sites globally in terms of overall performance. “[Diageo Australia] is very strong in what we would call our planning environment – sales and operations planning. It runs a very efficient process here,” he said.

“It’s a highly integrated, highly effective logistics organisation.”

He added that the Australian business is also strong in the area of innovation.

“Australia would be one of the benchmarks particularly around ready to drink launches and ready to drink development,” he said.

Given these strengths, Cutter predicted that the Australian business could do better than the top ten. It could move into Diageo’s top five or even top three sites globally.

Cutter was recently back in Australia to open 62 APRIL 2015 Manufacturers’ Monthly

Diageo Australia Supply Director, Joe Russo (left) with Diageo President, Global Supply & Procurement, David Cutter at the warehouse opening.

Diageo Australia’s new warehouse in Sydney’s western suburbs.

The facility, which sits alongside Diageo Australia’s primary manufacturing site in Huntingwood, has the capacity to store 26,000 pallets of Diageo’s products – the equivalent of 22 million bottles of Australia’s favourite Bundaberg Rum. It is hoped the warehouse will improve the company’s efficiency. Diageo wants to consolidate the number of warehouse facilities it has around the country. The aim is to go from five to three and possibly even down to two in the future.

“The opportunity I see for this facility is to continue to drive down costs, continue to utilise the facility the team has put in here, which may open up the opportunity for exports as well as further growth out of the Australian market,” said Cutter.

He pointed out that Asia could become a significant export market. It is a region in which the emergence of the middle classes, particularly in China and India, “will see over 600 million legal drinking age consumers over the next ten years”.

“My view is the Australian market can play a role because it’s very cost competitive,” Cutter said.

“Clearly the logistics cost of shipping out of Australia is tough but if you can be a highly performing organisation here you can source materials locally and competitively, you can have competitive labour rates I think Australia has an opportunity to satisfy the growth within China and India…as well as other Asian countries.”

Environmental responsibility is also a key focus for Diageo.

Prior to building the new warehouse, Diageo stored most of its inventory at a third party facility.

With the new warehouse now collocated with its manufacturing facility, Diageo Australia will reduce its carbon emissions by 110 metric tonnes of carbon dioxide annually – the equivalent of taking 35 standard passenger vehicles off the road every year.

This carbon reduction will contribute to Diageo’s 2020 target of reducing absolute greenhouse gas emissions from direct operations by 50 per cent, plus 30 per cent across its total supply chain.

“We think we have a huge opportunity to have a positive impact from an environmental perspective,” said Cutter.

He pointed out that, globally, Diageo has also worked on improving other aspects of its environmental performance. Water is one example.

He said that when he left Australia ten years ago the Diageo site was water stressed, (as was the state of NSW). “And a lot of great work was done at this site in terms of reducing water usage,” he said.

Tying it back to the all-important global KPIs he added that Diageo Australia’s performance on water efficiency and environmental impact are now “right up there as some of the best we have globally”.

Diageo Australia 02 9126 7266 www.diageo.com manmonthly.com.au

You are invited to the 2nd annual

2015 Women in Industry Awards Australian Mining, PACE and Manufacturers’ Monthly are partnering to acknowledge the exceptional women who have achieved success through their invaluable leadership, innovation and commitment to their sector.

Awards Dinner: Time: Venue: Costs:

This is your opportunity to join us in recognising the women who are driving change in your industry and – in doing so – breaking down barriers and creating new possibilities for the next generation.

Thursday 25 June 2015 6.30pm for a 7.00pm start The Ivy Ballroom Single tickets – $165 Inc GST Table of 10 – $1320 Inc GST

For further information please contact Samantha.gilroy@cirrusmedia.com.au (02) 8484 0944

To secure your companies involvement at this year’s event visit

www.womeninindustry.com.au

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