Manufacturers' Monthly October 2015

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

OCTOBER 2015

Australia’s brilliant

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Software Solidworks launches spring design collection

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Finance & Leasing Acquiring finance in today’s market

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Cooling & Fans Avoiding heat stress this summer

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ebm-papst A&NZ were recently awarded Business of the Year and Small Manufacturer of the Year at the 21 st Wyndham Business Awards, our government authority in Melbourne’s west. We would like to express our heartfelt thanks to our customers in Australia and New Zealand for their support and belief in who we are and what we do.

All products we supply to the market, whether they are made here or abroad, are locally engineered to provide the optimum solution for Australian and New Zealand applications. www.ebmpapst.com.au

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Inside

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

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Managing Editor: Branko Miletic Ph: (02) 8484 0976 Fax: (02) 8484 0722 branko.miletic@cirrusmedia.com.au

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Editor: Matt McDonald Ph: (02) 8484 0645 Fax: (02) 8484 0722 matthew.mcdonald@cirrusmedia.com.au Journalist: Brent Balinski Ph: (02) 8484 0680 Fax: (02) 8484 0722 brent.balinski@cirrusmedia.com.au Editor-at-Large: Alan Johnson Ph: (02) 8484 0725 alan.johnson@cirrusmedia.com.au Graphic Designer: Dave Ashley david.ashley@cirrusmedia.com.au Production Co-ordinator: Mary Copland Ph: (02) 8484 0737 mary.copland@cirrusmedia.com.au NSW Sales: Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Ph: (02) 8011 3184 anthony.head@cirrusmedia.com.au NSW, SA/NT & WA Sales: Cirrus Media Ph: (02) 8484 0868 anthony.head@cirrusmedia.com.au Published 11 times a year Subscriptions $140.00 per annum (inc GST) Overseas prices apply Ph: 1300 360 126

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4 Editorial 6 News & Analysis 12 IT@MM 16 Management – Financing & Leasing 18 Compressors & Pneumatics 22 Materials Handling 24 Cooling & Fans 28 Australians Overseas 30 New Products 34 The Last Word MA 1 0 1 5 _ 0 0 1

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

OCTOBER 2015

Average Net Distribution Period ending March ’15 18,904

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IN our cover story, Manufacturers’ Monthly examines the issue of Australia’s “brain drain”, and why so many of our brilliant innovators go overseas to make their mark.

We can’t seem to get away from the topics of innovation and startAustralia’s brilliant ups at the moment, so we’ve taken a timely look at what Australia lacks compared to other countries when it comes to retaining tech entrepreneurs.

The thing is, our brilliant expats tend to remain strongly connected to home – as we found out – and just because they’re away for the time being, 2 0 1 5 - 0 8 - 2 6 T1 5 : 0 8 : 2 9 + 1 0 : 0 0 this doesn’t mean they’ve stopped giving back. (See p.28)

emigrants

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Software Solidworks launches spring design collection

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Finance & Leasing Acquiring finance in today’s market

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Cooling & Fans Avoiding heat stress this summer

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Manufacturers’ Monthly OCTOBER 2015 3

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Comment

BRANKO MILETIC – Managing Editor

To TPP or not to TPP, that is the Question

W

NEXTISSUENEXTISSUE • Australia’s top 100 Manufacturers • Automation & Robotics • Welding Technologies • Metalworking & Machine Tools • Motors & Drives • IT@MM – Production Software • Materials Handling – Conveyors & Palletisation M A 0 4 1 –5Exporting _ 0 0 6 _ G WA 2 • Management

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ITH the recent signing of the 12-nation Trans Pacific Partnership (TPP), many questions are being floated as to whether it is good or bad for Australian industry.

Take, for example Peter Robertson, Winthrop Professor, University of Western Australia, who in a recent article for The Conversation wrote: “Despite the headlines, however, the TPP agreement has little to do with the economic argument for free trade. This is because the economic gains from trade don’t come from exporting more, or from preferential market access. They have nothing to do with mutual concessions. Rather the gains from trade are derived from being able to import at lower prices.”

On the other side of the argument is the likes of Remy Davison, Jean Monnet Chair in Politics and Economics, Monash University, who noted in the same publication: “You can pine for the 1970s if you want to: replete with stagnation, stagflation, Jeremy Corbyn and morbid unemployment rates. The 1970s: when Australia’s share of world trade was slashed by half. But you cannot avoid the realities of the cutthroat business of international capital, trade and in2 0vestment.

1 5 - 0 3Australia’s - 3 1 T 1FTAs 4 : 4and 8 :the 1 TPP 9 + 1are 1 :strategic 0 0 responses to the forces of globalisation.”

These opposing views are symbolic of the main for and against arguments currently circulating, where the issue of the TPP boils down to either accepting a free trade agreement with as yet unmeasured and nebulous gains or rejecting and replacing it with high tariffs, trade barriers and near-terminal economic growth.

I am unsure as to which view will prove to be correct, however for Australia’s manufacturers’ I guess the truth will lie somewhere in the middle of those two points of view. Perhaps if we look to the uptake of new technology, some answers may be found.

Early adopters of technology are always the ones that get the most benefits. Once this technology becomes ubiquitous, the net gains across all the users are then more or less evenly spread out.

Think steam trains in the 19th century or the Internet as prime examples.

Since Australia is currently a signatory to some 11 Free Trade Agreements and is due to sign seven more in the near future, the benefits may not be as spectacular as some of the pundits predict.

Then again, the alternatives are hardly anything to crow about. branko.miletic@cirrusmedia.com.au

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News&ANALYSIS SolidWorks launches spring design collection Spring is here, which means 3D software company Solidworks is currently showcasing its latest product suite. Brent Balinski reports.

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OLIDWORKS 2016 was launched last month. According to the company, it contains over 100 innovations and is the culmination of over 600 projects.

To date, the company boasts nearly 2.72 million licenses shipped, and 210,800 companies worldwide as paid up users.

“The whole idea is ‘Mr Customer, your job is to focus on the design’,” Benjamin Tan, Director of Professional Channels AP South, Dassault Systemes (SolidWorks’ parent company) told Manufacturers’ Monthly.

“Our job is to make the tool you use as intuitive as possible, so much so that you focus purely on the design while we help you solve your problem.”

And as with previous years, enhancements were pitched around the themes of “design, collaborate, build and validate.”

At a Sydney lunch event last week to mark SW2016’s launch, case study Cocreators presented on its use of the Solidworks suite as core in assisting

SolidWorks 2016 contains over 100 innovations.

6 OCTOBER 2015 Manufacturers’ Monthly

start-ups in product development.

Based in the Sydney, the agency was formed three-and-a-half years ago and has recently been involved with four Kickstarter projects – Ninja Sphere, MicroView, GoFar and, most recently, the Forcite Alpine Helmet.

The smart snow sports helmet has gained the attention of The Sydney Morning Herald, The Australian and other news outlets this year, and Cocreators has spent 18 months working on it with Forcite duo Alfred Boyadgis and James Chen.

The helmet integrates a highresolution video camera, long-range Bluetooth for communications, fog lights and more. “[It brings] all this together into a device that can compile video of your best elements of the run on your smartphone, hooked up via Bluetooth and hit share,” explained Ted EsdaileWatts, co-director at Cocreators.

Upgrades, upgrades, upgrades Nine-tenths of the upgrades in Solid-

Benjamin Tan, Director of Professional Channels AP South, Dassault Systemes.

Works 2016, as with other years, come based on feedback from users such as Cocreators and others.

It continues to be a case of giving the customer what they want.

This time around enhancements include an automated thread creation tool (select the tool, select a starting and a concluding edge, enter a number of threads...and voila), and being able to define constant and variable fillet edges as “curvature continuous”. The latter helps blend sharp edges much more quickly.

There is also a rebranding and integration of Dassault’s Bunkspeed studio as SolidWorks Visualize, making photo-quality renderings for marketing purposes much simpler.

Asked which of the additions he found most useful, Tan nominated the Breadcrumbs feature, which makes it easier to access any level of a model, without displaying the feature tree onscreen.

These follow a user as they work on a project, cutting down on mouse travel.

“The software intelligence to some extent studies – I use the word ‘study’, quote unquote study – the design behaviour of the user and makes relevant recommendations on how he designs,” said Tan. It mightn’t sound important, but every flick of a mouse requires a little effort. And every little effort adds up.

“To move the mouse on the cursor from one end of the screen to the other end of the screen, it takes a couple of seconds: imagine doing this repetition a couple of thousand times a day,” said Tan. “So if you can cut that by, say 50 per cent, can you imagine the number of minutes you save? If you multiply that by, say, 200, 220 days a year, that’s big. Again, just by that little feature, you get humongous productivity gains.”

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News&ANALYSIS In brief...

Aussie VWs in emissions scandal Volkswagen has given a figure on Australian vehicles affected by the diesel emissions scandal, stating over 77,000 VWs locally possess “defeat device” software.

Volkswagen has used software to cheat lab tests, admitting 11 million vehicles worldwide contain this mechanism.

Ford to source locally beyond 2016 Ford Australia will continue to source parts from 63 Australian car component makers after it ceases its local manufacturing operations in 2016, with plans to help more local aftermarket parts suppliers get work in Ford’s global supply chain.

Superconductor agreement Siemens, Defence Science and Technology Group and QUT have signed a research agreement to explore the use of high temperature superconducting (HTS) technologies in Australia’s maritime sector. Superconductors show the highest technical current densities available.

Manufacturers urged to automate Hunter company Hedweld has said that Australian manufacturers must train staff in robotics. The company is currently going through an expansion of its Mount Thorley facilities, investing in state-ofthe-art CNC machinery and robotics.

Hawkei contract joy PM Malcolm Turnbull has announced a $1.3 billion contract for Thales Australia to build 1,100 new Protected Mobility Vehicles in Bendigo. Pilot production begins next year and full production 2018. The Ai Group praised the decision’s benefits for regional manufacturers.

Robot sales to keep growing The International Federation of Robotics’ World Robotics Survey predicts an average annual growth of 15 per cent up to 2018, with annual unit figures doubling from 2014 to 400,000.

PMI hat-trick The Australian manufacturing sector expanded for the third straight month, according to the Australian Industry Group’s Performance of Manufacturing Index (PMI) survey. The PMI for September was 52.1, up from August’s 51.7 and July’s 50.4.

8 OCTOBER 2015 Manufacturers’ Monthly

Unions promise no strikes on submarine project THE unions representing workers at ASC’s South Australian shipyard have pledged that, if the site wins the contract to build Australia’s next generation submarines, there will be no strikes on the project.

AAP reported that the three unions in question, the AWU, AMWU and CEPU, joined with South Australian Premier Jay Weatherill to make the pledge.

Weatherill wrote to the new federal Minister for Defence, Marise Payne, to put the case for South Australian involvement in the project.

Peter Lamps, AWU assistant secretary, said the nostrike accord was not selling out workers’ rights and ensured disputes were resolved efficiently.

“All we’re doing is reaffirming what we’ve been doing... at this site for the last 30 years,” he said, Japan, France, and Germany have bid for the project. The federal government has yet to decide whether the work will be done locally, will be done by one of those foreign bidders, or if there will be a foreign-local hybrid build. “…whichever overseas bidder is chosen to build the future submarine project, they will have a workplace that is productive and co-operative,” Weatherill told reporters at the site.

He added that ASC’s Osborne site enjoys “precisely the sort of industrial environment which will allow us to successfully pursue this project.”

According to the ABC, the pledge is similar to one that was made a decade ago when South Australia won the contract to build air warfare destroyers for the Australian navy.

Meanwhile, the West Australian reported that the new Federal Social Services Minister Christian Porter, who holds the WA seat of Pearce and has previously shown his support for his state’s shipbuilding industry, told ABC Radio he is confident

HMAS Sheean arrives at Fleet Base West following a six month deployment.

WA will win upcoming shipbuilding contracts.

Upcoming projects include the building of offshore patrol vessels, frigates and submarines.

The comment followed WA State Treasurer Mike Nahan’s attack on ASC and the SA shipbuilding industry, which he described as a ‘basket case’.

What members of our manufacturing community thought about the unions’ pledge Alfred Arthur Arnold Be Nobody can trust them anymore, and after what happened last time they dont deserve any consideration at all, give it all to some one who will take care.

Peter Angelico So their starting point is an empty promise of ‘no strikes’? Is that the best these troglodytes from the union movement can offer? No wonder they can’t build anything cost effectively any more! High time these EBA’s get shoved where the sun don’t shine!

unions think blackmail is a great negotiation point. They are willing to help but only on there conditions, sounds fair, not!

Editor’s note: These comments are as received. Corrections have been made for spelling and grammar only.

What do you think?

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

Anthony Peter, I agree. Interesting that the

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Comment

INNES WILLOX – CEO Australian Industry Group

Time to change tack on workplace relations Workplaces have changed and legislation surrounding them must also change. More flexibile workplace relations would benefit both employers and employees. Innes Willox writes.

T

Heydon Royal Commission into Trade HE past six years have been Union Governance and Corruption. a very frustrating time for At the end of this year, both employers with regard to inquiries will recommend legislative workplace relations. changes. These will include some big We saw the Fair Work Act impleticket items that would deliver genumented in 2009, increasing union ine reform and encourage employers powers and reducing employer flexto increase their investment in Ausibility in numerous areas. Then the tralia and take on more workers.

Coalition went into the last Federal It is crucial that the Government election with a very modest agenda does not take the easy way out in for workplace relations changes – nearly all of which have been stymied an election year and rule out all the significant changes. in the Senate.

It is very important that Prime So far, the best thing that has Minister Turnbull and Employment happened during the current term Minister Cash get on the front foot of Government to deliver a more and lead community debate about productive, flexible and fair workMany of the trends that will relegislative changes consistent with place relations system has been the shape the workplace of the future are the needs of 21st century workplaces. establishment of the Productivity Commission M A 1 0Inquiry 1 5 _ 0into 0 0the _ TWorkEA2 1What 2 0are 1 those 5 - 0 needs?

9 - 2 4Flexibility T 0 8 : 2 9 :already 1 5 + 1apparent.

0 : 0 0 Firstly, the ‘sharing economy’ is a new way of organising and change management above all. place Relations Framework and the production, consumption and the use of assets, enabled by cheap computing and ubiquitous communications.

Services like Uber and Airbnb create huge efficiencies and new possibilities. They also create working arrangements that don’t necessarily fit into old categories of employment.

The law is going to have to catch up and meet the needs of service providers and customers.

Secondly, automation is going to move well beyond the factory floor to shake up an ever wider set of activities, including many personal and professional services. Some kinds of jobs will disappear, but many more will transform.

The law is going to have to support constant evolution in the nature of jobs and the reskilling and redeployment of workers necessitated by automation.

Thirdly, the ageing of our population will put a premium on workplace flexibility. An increase in the ratio of dependents to workers will require increased productivity to maintain prosperity; retaining older Australians in the workforce for longer, with arrangements that suit their changing capabilities and needs, will be essential.

10 OCTOBER 2015 Manufacturers’ Monthly

In all three of these areas, our workplace relations system will need to provide flexibility to meet needs that evolve ever faster, and help businesses and workers navigate that change effectively.

There is a key role in such a workplace relations system for some of the measures in the Draft Report of the Productivity Commission’s Inquiry into the Workplace Relations System, including: • An expanded role for Individual Flexibility Arrangements (IFAs); • The introduction of Enterprise Contracts – a new agreement-making option; • A reduction of emphasis on procedural aspects under the unfair dismissal and agreement making laws; • Preventing collective agreements restricting the use of IFAs, contractors, labour hire and casuals; and • Reducing Sunday penalty rates in industries such as fast food, retail, hospitality, restaurants and entertainment.

Two major inquiries into workplace relations matters will shortly deliver their findings and it is important that the Government get on the front foot quickly. It is not sustainable, nor in the community’s interests, for the Government to take a back seat in this debate. www.aigroup.com.au manmonthly.com.au

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ADVERTORIAL

As the world moves online, so do the criminals And what they are after is your data, including your intellectual property and commercially sensitive information.

Attacks on your online systems can be commercially and financially devastating, causing havoc and mayhem for you, your suppliers and your customers.

You physically secure your business, but do you secure it digitally?

Here is what you should do….

Back up Backing up your data is still one of the best ways to recover from data loss and other disasters.

Prepare for an incident Develop a plan for what you will actually do to respond to a cyberevent before it happens.

Secure your devices

Identify information of value Begin by understanding what you actually want to protect.

Establishing good information security means understanding the true value of your data. That’s your intellectual property (IP) and trade information such as plans and strategies, product and performance data, customer details, payment information, databases of partners and suppliers, distributors and supply chain records.

If the data is important to your business and your operations, it is worth protecting. You are also legally obliged to protect financial data and customer privacy.

Prioritise Start by undertaking a basic risk and cost-benefit analysis of your data.

Make an assessment and document the value of each data type so you can focus your security resources and budget efficiently.

Label valuable information If information is important, make that clear at the point where it is accessed. This might mean adding physical labels or metadata, notes, banners, information guides and pop ups to systems and interfaces.

Lock access down Restrict user account access to only the systems, data and services required. Make sure you have passwords and security controls. Restrict physical access to locations such as datacentres.

Encrypt data Encryption to suit your environment can be applied at individual file, folder, drive, application, network and transmission level.

Educate The weakest security link is people. From lost laptops to misdirected emails, make sure you and your staff are aware of the value and importance of the different information in your organisation, and how to secure it.

Manufacturers are big users of mobile devices such as phones, tablets, notebooks and other access point devices, including production line and machine control systems, and in-vehicle systems. Keep an inventory of your devices so you know what you need to secure.

Apply software updates and patches to all your systems and devices as soon as they become available. Decide on a simple policy for managing and deploying updates consistently.

Lost mobile devices and/or staff using their own devices present other security issues. At a minimum you should enforce password protection, screen locks and encryption. All devices have security features that should be enabled.

Communications Reputable, up-to-date security software significantly reduces your vulnerability to threats to your communications systems – phone networks, email and messaging services. Security vendors offer a range of suites and features which include options for agile manufacturing, managing and controlling complex networks and endpoints; and dealing with common threats such as spam, malware and other more sophisticated attacks.

Remember, the online security measures you take today can not only help protect your business from existing threats but also from ones that are yet to emerge.

The Australian Government’s Stay Smart Online Programme offers advice to small businesses and other Australians about being secure and safe online. The Programme also offers a free email Alert Service for people who want to keep up to date with current online threats and how to address them.

To sign up for the free Alert Service and further information visit the website at www.staysmartonline.gov.au

Use technical solutions There are many solutions that can help manage valuable data assets, including data loss prevention, content monitoring and tracking and even counter-intelligence security features.

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TechnologyIT@MM Reshoring from a supply chain perspective Manufacturers looking to reshore their operations to Australia would do well to realise that technology is there to help them in their quest. Bruce Stubbs writes.

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HERE are several contributing factors why Australian manufacturers are looking to reshore part, or all, of their production onto home soil or a base closer to home.

The once very attractive wage rates in the regions that were targeted for outsourcing like China have begun to rise.

While this is advantageous for countries exporting to those regions as the consumer buying power has increased, it is making the cost of outsourcing operations to those regions rise.

Coupling this with the perceived – and in some cases real drop in quality of goods produced – makes it attractive to bring these operations back closer to home.

Another factor driving the growth in reshoring is the instability and political upheavals plus natural disasters that have plagued some of the growth regions targeted for past outsourcing in South-East Asia and caused major disruptions of manufacturing processes and global supply networks.

In the majority of cases, when an Australian business offshores their production capabilities, they do so from an infrastructure standpoint and lose their facility’s systems and highly trained personnel over time.

Therefore a key challenge for any Australian business looking to reshore is how they overcome this lack of infrastructure and trained personnel to fulfil their manufacturing orders locally.

While some businesses will reinvest with a longer term view to re-establishing a highly skilled manufacturing operation locally, many will look at the short term challenges and consider the costs of reshoring to be too high.

Technology can assist A key challenge for manufacturers looking to reshore their operations 12 OCTOBER 2015 Manufacturers’ Monthly

to Australia is a lack of specialist trained personnel in the production process. As such, local businesses should look towards automated technologies where possible to help plug a skills gap and improve overall operations.

By implementing asset tracking technologies like handheld comput-

of equipment. When a replacement is issued or an item returns from repair, the specialist sends a task update through the mobile computer to the project manager which automatically updates the system.

While these improvements may seem marginal in single instances, by making the small processes which

ferent types of material around their yards in tanker trucks.

They do this in order to maintain inventory levels and ensure they are taking the stored plastics to the right areas for unloading into the hopper bins.

The company is actually using RFID trailer tags that will identify (because of the technologies readwrite capabilities) what’s in that tanker.

When that tanker backs into a loading door, RFID enabled gates provide instant visibility over what is in the trailer, if it is the correct trailer and whether the contents are the correct blend for the specific production process.

Distribution implications

By implementing asset tracking technologies, manufacturers can deliver more accurate and timely information. ers in a manufacturing facility, businesses can deliver more accurate and timely information to limit equipment downtime and expedite repair order applications.

For instance when a repair order comes in, equipment repair specialists can use a handheld computer to obtain a task detail showing the exact location of relevant parts and assets among the thousands that exist in a large manufacturing setting.

As the specialist picks a replacement item or puts something in to be repaired, they scan its bar code with the integrated scanner on the mobile computer.

The program immediately subtracts the item from its inventory count, eliminating time workers waste looking for an unusable piece

happen regularly leaner, significant improvements can be gained.

Imagine that each time a worker is looking for a piece of equipment that is in for repairs, it wastes 10 minutes.

Multiply that by the many times that it happens daily, by the number of workers and there are significant gains, reducing the cost to the operation and the consumer and making the reshoring process more viable over the long term.

RFID technologies can also assist manufacturers looking to improve their reshored operations.

For example, a large Middle Eastern plastics manufacturer recently started using RFID in a new facility in an innovative way.

The company moves very large volumes of pallets of plastic and dif-

When manufacturers go through a process of reshoring they not only need to consider the implications to their business in relation to reestablishing their local production facilities, but they also need to consider how they will best set-up their distribution processes.

Manufacturers looking to establish a new distribution network following a process of reshoring need to engage logistics providers that have the right technology in place to support international traceability protocols, especially in relation to any food based production.

Logistics partners need to have software systems in place that are capable of managing the receipt of manufactured goods, the handling of the storage aspect on an ongoing basis, as well as the outbound shipping capability to make sure that the product goes to the correct customers who are ordering it, in the correct manner and in the correct conditions.

[Bruce Stubbs is Industry Marketing Director with Honeywell Scanning & Mobility] Honeywell Scanning & Mobility 03 9420 5555 www.honeywellaidc.com manmonthly.com.au

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Technology IT@MM Improving supply chain profitability One way to improve you supply chain profitability could be by looking at your Cost-To-Serve (CTS). Rob O’Byrne writes.

S

UPPLY chains are complex entities. Even if you simplify your product range and your upstream suppliers, you still have to deal with the ramifications of diverse customers, their expectations, their location and the logistics needed to meet their requirements.

While customer satisfaction is a hugely important criterion by which supply chain success is judged, so is supply chain profitability.

The challenge is to measure profitability to the right level of detail in order to see what works and what could be improved.

Cost to Serve (CTS) is an approach that lets you identify specific actions to take for a better bottom line without necessarily sacrificing customer satisfaction.

Real cost of CTS By calculating what it truly costs to deliver goods or services to a customer, and by comparing that cost with what you invoice the customer, you can see what is finally left for your enterprise, in terms of overall profit – or loss.

Assuming your production costs are the same each time the same product is produced, and a sales price is set for that product, therefore your sales price minus, your production 14 OCTOBER 2015 Manufacturers’ Monthly

cost, is your overall profit or margin; before allowing for further expenses.

But what about those further expenses? Here is a sample list, with each item on it potentially chipping away at your overall profit: • Promotional discounts • Efficient order terms • Sales organisation costs • Marketing costs • Ordering and cash collection • Storage • Picking and packing • Outbound transportation • Customer-specific services • Returns management • Logistics.

Knowing your CTS A knee-jerk reaction to a loss-making sale might be to stop selling that way or stop serving that customer. However, handing a customer over to your competitors is rarely the best option.

The real value of knowing your CTS a given customer is to identify opportunities to increase or recover profit, rather than simply cut losses.

It makes more sense to see how you can transform unprofitable customers into profitable ones, rather than cutting them off. This is also more consistent with the statistic that it is up to ten times less expensive to sell to an existing customer

Cost-To-Serve (CTS) reporting, analysis and modelling has much to offer manufacturers of all kinds. than to go out and find a new one.

In addition, while you can take the credit for low CTS, it may also be that high CTS is more your fault than the customer’s.

Let’s explain. Customers have their own expectations about the service they receive from their suppliers.

They may be just as happy with a lower level of service, meaning that you are losing out on profit by unnecessarily over-serving them.

Or they may expect higher levels, but understand that this must also be paid for, over and above standard pricing.

In the first instance, you could reduce CTS and increase profit, without upsetting the customer. In the second, CTS would remain the same, but sales pricing could be increased as appropriate. Knowing your CTS per product and per customer also lets you better control different commercial strategies too.

You may decide that if you make an overall profit from a customer,

then you’ll accept some unprofitable sales as part of the mix.

Knowing your CTS will let you make the initial adjustments so that globally your business relationship with that customer is profitable.

If profits start to decline afterwards, your CTS data can offer valuable information about what changed and how to get back on track.

It can of course also be used to make an already profitable relationship even more profitable!

Using CTS data The CTS approach is a pragmatic one. It aims for a balance between providing useful, actionable information and containing resources and efforts for data collection at reasonable level.

It is inherently more useful than the top-level averaging approach of some enterprises, which fails to identify the real cost drivers and therefore the potential for improvement. manmonthly.com.au

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On the other hand it is less complex than the intensely detailed activity-based costing (ABC) approach often used internally to calculate levels of expenditure and departmental budgets.

That said, CTS models that include end to end supply chain activities can use ABC data in order to calculate the overall profitability of serving a customer with a product.

CTS tools The tools for determining CTS include standard spreadsheet applications, such as MS Excel, and network design modelling software.

In the first instance, a CTS model allocates costs that are already being tracked by an enterprise: a spreadsheet model can provide a basic yet useful approach.

For categories of costs that are more complicated to manage, purpose-built network modelling applications make it easier to allocate costs and to calculate CTS for different customer/product combinations fromMtransportation, andA 1 0 1 5 _ 0 production 0 0 _ T RO warehousing cost data.

The pragmatism of CTS means a piecemeal or partial approach can also yield profit improvements. CTS modelling can be done first of all on a subset of costs that already make a large contribution to overall profitability, such as logistics costs.

As CTS data collection and modelling capabilities develop within your organisation, you can then extend to an end to end supply chain model as desired.

the results collectively plotted on a graph. This often gives what is called a “whale curve” of accumulated net profits that shows how: • First, a small percentage of customers (say 20 per cent) is truly profitable for the company, showing a steep climb in accumulated profits • Then, a relatively large percentage (say 60 per cent) only allow the company to break even, representing a flat line in the graph (no further profit) • Finally, another percentage (20 per CTS benefits cent in this example) of customers CTS data and modelling benefits actually loses money for the comare sometimes deceptively simple, pany, showing a steep dive back and may confirm things you already downwards in total accumulated suspected were true. profits.

For example, a CTS analysis may By grouping a particular number show you that customers ordering of customers together, profitability directly from you at your factory also can also be evaluated for a customer generate lower costs in transport or market segment. and inventory costs. This sounds like A product can be analysed in common sense. However, what a CTS terms of overall costs to stock and analysis also then brings to the party distribute it. is accurate data on how much lower, CTS models may therefore also allowing better cost allocations and lead to SKU rationalisation and simpricing decisions for profitability.

1 Individual 2 0 1 5 - customers 0 9 - 2 3 can T 1 be 5 :as1 0 : 1 plification.

5 + 1 0 : 0 0 Besides identifying low (or negasessed for overall profitability and

tive) margin customers and products, high cost processes can also be picked out for improvement and optimisation.

CTS reporting and analysis Taking CTS further still, the data and the models built can be used to manage real time decisions about stocking, transport routing and order handling.

Orders can be evaluated in terms of their true CTS, and either accepted, declined or modified on that basis.

Seasonal variations can be taken into account, whether in the costs of production, storage or transport.

Besides optimising the present or fixing the past, CTS reporting and analysis opens the door to what-if scenarios and projections. Alternative modes of service and distribution can be investigated before trying them out in practice.

[Rob O’Byrne is Group Managing Director of Logistics Bureau] Logistics Bureau 02 9232 8800 www.logisticsbureau.com

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Manufacturers’ Monthly OCTOBER 2015 15

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Finance & LEASING Acquiring finance in today’s market Interest rates are at an all-time low, but Australian manufacturers are still struggling to raise finance.

Alan Johnson outlines some options.

Y

OU are running a successful manufacturing company that’s going OK, but you know, you just know it could be doing so much better if you could expand into larger premises and/or introduce a new product line or diversify into a new market.

All you need is a ‘lazy’ couple of million and you would see the company fly. But where do you get that sort of money from?

Talking to finance experts, it is clear there are any number of options, the key to them all, whether its $10k or $100m, is having a good story to tell investors, including a strong business plan, growth prospects, a valuation which can withstand scrutiny, and passion.

Finance options According to finance professionals, manufacturers have a number of finance options and include: Family and Friends: Your family and friends could be approached to chip in, but even if they do have the financial resources, it usually won’t be long before you exhaust your options here.

This option is OK for start-ups, and often the only option, but if you have been in business a few years, you would have exhausted this option already.

Employees: You could invite your employees to participate in your business success and growth through an employee share ownership plan which would provide you with some capital to fund expansion, and release your equity.

The key to this option is only inviting long-term reliable employees that 16 OCTOBER 2015 Manufacturers’ Monthly

The key to raising capital, whether its $10k or $100m, is having a great story to tell investors.

you can trust.

Government Grants: Federal or State Government funding might be available to assist in the growth of your business, particularly for innovative and environmental projects, but they are often difficult to access and can be laden with restrictions.

However, there a number of generous grants for manufacturers diversifying out of the automotive sector, especially for South Australia-based companies. For more information go to www.business.gov.au.

Listing: The stock exchange is the most expensive and time consuming way to raise capital for your company and is usually out of reach for the typical SME. However there’s a relatively new capital raising technique that companies can use called ASSOB (Australian Small Scale Offering Board).

The ‘Claytons’ listing provides

SMEs a mechanism for facilitating liquidity and capital raising that was previously only within reach for very large companies, but it can be a very slow process.

Debt: This is the most expensive option and will often involve mortgaging the family home, which is a risky move.

The problem with debt is that banks will usually only lend to people who don’t really need the money.

Even with the actual cash rate at historic lows, the rate for a SME is ridiculously high, and if you haven’t got property security to put on the table, you’re effectively at credit card interest rates if you can actually get the loan.

Angel Investors: Companies often tap into angel investment networks such as Anthill, Business Angels and the Australian Investment Network and find high net-worth individuals to invest, often offering seed funding.

The ‘angels’ are often retired professionals and invest their busi-

ness skills and capital into new and developing enterprises.

However, critics complain about it being difficult to get past the gatekeepers to actually get to the right person and then to be able to articulate your proposition in a way that gets it over the line.

It can be very time consuming and costly way of doing it and unfortunately not much success around it.

Private Equity Funds: Fundraising from private equity investors can be a good option for SMEs. Some funds are doing well, but as fund sizes get bigger, the investment decisions get bigger too.

The problem is private equity can afford to be very, very choosy so if you’ve not got a very smart business plan, an excellent management team on board, and a growth story that you can articulate, then you’re just wasting your time, because the guys are seeing all the deals coming through and can cherry-pick.

The advantage of private equity though, if you can get the right deal size and the right team behind you, is manmonthly.com.au

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that it’s not just cash, unlike an IPO where it’s mums and dads and institutions, you’re getting an advisory board and network of people who can add value to the business.

Merge with Competitor: Your first reaction is probably ‘no way’, but think about it. Mergers or partnerships can be a good idea.

They don’t require any finance and can be a cash-free way of plugging a hole in the business.

Whether you’re looking to enter a new market, develop new products or bring in some know-how, look to see if there’s another business out there that’s already got that. If so, why not join forces either formally or informally?

While mergers are more popular at the moment, they’re harder to do, and take more investment time.

However, the chances are the people you’re merging with are sharing some of the same pain and if you get together maybe one plus one can equal Mthree.

A0 9 1 5 _ 0 0 0 _ SI E2 Crowdfunding: For some small

manmonthly.com.au

“

Listing on the stock exchange is the most expensive way to raise capital for your company...

you have a million mums and dads companies that need capital to deowning a share each and you have to velop a particular product, traditiongo to a shareholder vote every time al crowdfunding where people back you want to do anything. It would be projects for either altruistic reasons a huge drag on the company. or to acquire “rewards” are a good Investors: Attracting investors or option. venture capitalists (sometimes deListing a project on a site like scribed by some as ‘vulture’ capitalKickstarter or Pozible can work as ists) is another useful option but can a pre-order channel and lets the be difficult to organise and place you entrepreneur test the market before under a lot of pressure to perform in committing capital. The concept has a very short space of time. been around a few years and there Most will not consider investing have been some great business success stories, making it an increasingly in your company unless you can tick all boxes on a detailed list of criteria, popular option.

However, the biggest problem with including a clearly defined and forany fundraising is managing a diverse malised exit strategy. shareholder 2 2 0 1 5base.

- 0 8 - 2 7 T 0 9 : 4 5 : 2 9Organic + 1 0 :growth: 0 0 Last but certainly not least, it is possible to achieve You might get to the point where

your goals the old-fashioned way, by growing revenue from customers and conserving cash within your business.

Many successful companies have got where they are today by saving their own cash, retaining their profits within the business, and keep reinvesting in the business itself.

The upside is that it’s less risky, you don’t dilute your equity or take on costly interest repayments, and you can be confident you’re building your business on solid foundations rather than quicksand.

The downside is that it is slower and your competitors may grab market share and entrench their position.

Whichever option(s) you choose, remember to have a great story to attract any potential investors before you pick up the phone.

[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]

Manufacturers’ Monthly OCTOBER 2015 17

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Compressors& PNEUMATICS Kaeser celebrates 25 years in Australia Next month will see Kaeser Compressors Australia celebrating its 25th anniversary. As Alan Johnson reports, the company has had quite a journey.

F

ROM humble beginnings with just two employees, Kaeser Compressors has exponentially grown with state branches and a dedicated network of partners throughout Australia, New Zealand and New Caledonia, yet remains in the same location; Dandenong, Victoria Not surprisingly, Peter Eckberg, Managing Director of Kaeser Compressors Australia since the company’s inception in 1990, has seen many changes over the past 25 years.

“Where once the user was simply purchasing a piece of equipment, today they are looking to purchase a solution,” he told Manufacturers’ Monthly.

Eckberg said the rising cost of electricity and the growing environmental a company M Aobligations 1 0 1 5 _ 0 0 0 _ A Tnow L has are two significant factors that

munication and inter-connective abilihave contributed to this change. ties of air compressor technologies.”

“As a result, the majority of comEckberg said it is now commonpressed air users today are not only inplace for compressors to have an terested in the energy costs attached industrial PC-based controller with to running a compressed air system, a display which allows the user to but moreover its total life cycle costs.” see at a glance key data such as load, Looking back over the past 25 operation and maintenance hours. years, Eckberg says the develop“Solutions such as our Sigma Air ment of variable speed drive (VSD) Manager 2 (SAM 2) PC-based master controlled compressors has probably compressed air management system been the standout advancement in have pushed the capabilities of this air compressor technology. technology even further.”

“By precisely matching output to actual compressed air demand, VSD controlled compressors can save Common mistakes energy for users with a fluctuating While there have been major advancdemand for compressed air. es in technology in the past 25 years, “As well, the revolutionary developEckberg says owners and operators ments in information and communicaare still making mistakes regarding air systems.

7tion2technologies 0 1 5 - 0 9have - 2 had 2 T a1 profound 0 : 2 6 : 2 their 9 + 1compressed 0 : 0 0 effect on the control, monitoring, com“Most manufacturers still under-

estimate the efficiency of their compressed air systems, even though many are acutely aware that it is a large energy consumer.

“An inefficient compressed air system costs more to run, and with the energy cost of a compressed air system accounting for around three quarters of its lifetime costs, knowing the efficiency of the system is paramount in keeping this cost to a minimum.”

Eckberg says compressed air is one of the easiest technologies with which to generate relatively quick and significant energy savings.

“By undergoing a simple compressed air energy audit, users can identify where opportunities exist within their system and what the savings potential may be.”

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Eckberg has been Managing Director of Kaeser Compressors Australia since the company’s inception in 1990.

As well, Eckberg is surprised to see some manufacturers still neglecting the maintenance requirements of their compressed air equipment, or see price as the key consideration in selecting a maintenance provider.

“When you look at the lifetime costs of a compressor, maintenance only accounts for around 6 per cent, and this drops to around 3 per cent for an optimised compressed air system. It therefore pays to follow the manufacturer’s prescribed maintenance schedule.”

Eckberg says opting for the cheapest service provider or the cheapest spare parts is often false economy.

“Only genuine OEM spare parts have been rigorously tested by the OEM for their durability, performance, efficiency and safety with the compressed air equipment. Inferior parts or service may lead to inferior compressor performance and may be considered a safety hazard.”

Incorporating a back-up system is another area Eckberg says manufacturers tend to overlook.

“This can be costly. Whether it be for maintenance or due to a system failure, whenever a business relies on its compressed air system, it is imperative it has a back-up system in place.

“Once you start to weigh up the costs of lost production, the necessity of having a back-up system becomes clear,” Eckberg said.

Technology advances As a leading innovator in air system manmonthly.com.au

technology, Eckberg says Kaeser places great importance on developing progressive system solutions with optimised performance and energy efficiency at their core.

As one of the world’s largest manufacturers of rotary screw compressors, Eckberg says many readers might be surprised to hear that Kaeser Compressors remains owned and operated by the same Kaeser family with all products still manufactured in Germany.

Eckberg says Industry 4.0, the collective term for technologies and concepts of value chain organisation, is playing a key role in both new product and service developments as well as the company’s manufacturing capabilities.

“By utilising cyber-physical systems, Industry 4.0 brings the real and virtual worlds closer together in order to guide and optimise companies manufacturing processes as well as entire value chains.”

He explained that two new “innovative” factories are currently being constructed at Kaeser’s head office in Coburg, Germany.

“The manufacture of compressors and compressed air equipment in these futuristic production halls will be networked with internal and external logistics, as well as their sales and marketing arms.

“By taking advantage of all that Industry 4.0 has to offer, the new production halls will allow Kaeser to build new and innovative products whilst optimising productivity and minimising lead times.”

Capable of seamless integration into an overall system and communicating with one another, Eckberg said all Kaeser products are ready to take advantage of the future-orientated benefits of Industry 4.0.

“All elements of a Kaeser compressed air system can be networked together from; production planning to implementation and predictive maintenance, enabling intelligent control, which allows for the automatic delivery of the compressed air volume and quality required by each specific user.

“This strategy will help to maintain availability and efficiency, and keep lifecycle costs to a minimum,” Eckberg said.

Kaeser Compressors Australia 03 9791 5999 www.kaeser.com.au

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For your nearest BOGE distributor call (03) 5940 3266 Manufacturers’ Monthly OCTOBER 2015 19

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2015-10-12T10:07:24+11:00

Compressors & PNEUMATICS Choosing the right air compressor The latest compressors can save manufacturers thousands of dollars every year, but as Alan Johnson reports the amounts saved depends heavily on the application.

T

RADITIONALLY, air compressors just sat in the corner of a factory or workshop chugging away day after day with little thought given to its operating efficiency apart from maybe the occasional service.

But today, any manufacturer who adopts this strategy could be wasting thousands of dollars in energy costs every year.

The latest air compressors on the market are vastly more efficient and can offer manufacturers considerable on-going energy savings, but only when the correct air compressor for the application is chosen.

David Brown, Product Manager – Industrial Air Division – with Atlas Copco Australia says the key to selecting the right air compressor is to conduct an air audit to find out exactly what a company’s air demands really are.

“Atlas Copco can conduct an air audit, completely free of charge, and confirm and guarantee what savings the company will make once the new air compressor is installed. There are never any unwanted surprises. When we carry out an air audit, we are looking at the variations in demand,” he said.

“We can then put the audit data into our unique, software package and turn the fluctuations into dollars, which ultimately gives the customer the energy savings possible.

“Very few other companies can offer this service and simulate the savings,” Brown said.

Energy savings While VSD (Variable Speed Drive) compressors are very popular machines with manufacturers, Brown admits they are not always going to give companies big savings in every application.

“If a manufacturer has a constant, steady demand, a VSD compressor is not going to save them a lot of money.

A VSD compressor will only save a company money when there is a fluctuating demand.”

20 OCTOBER 2015 Manufacturers’ Monthly

ongoing maintenance making up the other 15 per cent,” he explained.

VSD compressors

Unlike traditional air compressors, the motor and drive train on Atlas Copco’s GA VSD+ share one drive shaft and are vertically aligned to allow a smaller footprint.

Brown says he comes across this quite a lot, where people think a VSD will automatically save them money.

“That is not always the case.”

“If we can’t get a payback period of a VSD compressor of less than two to three years, we don’t always promote that as being the right machine.”

However in most cases, he says companies with fluctuating demand can achieve a payback within 18 months to two years, though sometimes it can be less than 12 months.

“The key is to conduct an air audit in the first place. After the customer has bought and installed the compressor, we will conduct another audit a month or so later and show

the customer the savings are there, which we guarantee will be there.”

Brown says most sales are upgrades where an existing compressor is getting old and inefficient, and costly to operate.

“For example, we conduct an air audit and simply replace a 37kW compressor with a 37kW VSD compressor, normally saving the company 30 per cent on its energy costs.”

He said that energy costs are by far the largest proportion of the overall cost of an air compressor, with the purchase price only 10 per cent of the lifetime cost of the machine.

“The general consensus is that energy costs make up the bulk of the overall cost, around 75 per cent, with

Brown pointed out that Atlas Copco, as the largest manufacturer of air compressors in the world, is able to supply the right air compressor for every application.

However he warns that this is not always the case, with VSD compressors from some other manufacturers using a standard drive motor and fitting an “off the shelf” invertor drive package.

“The problem with this arrangement is that when the standard motor is running at low speed, there may be cooling problems because the cooling air flow is lower than its design flow.

The correct arrangement is to use a motor designed for VSD control.”

Brown explained that the very latest design of VSD compressors from Atlas Copco, the radical new GA VSD+, utilises oil cooled, interior permanent magnet (IPM) motors, where the motor shaft and element shaft are one, eliminating all drive losses.

Meaning there are no gears, belts or shafts to maintain.

“These are brilliant machines. The power savings alone are significant enough to justify investing in a new machine.”

He said the GA VSD+ compressor offers a major leap forward in FAD (Free Air Delivery) with improvements of up to 12 per cent, and a breakthrough in energy-efficiency requiring on average 50 per cent less energy than a comparable idling compressor.

“Plus it’s much quieter than other air compressors on the market; down to an unbelievable 62db(A).”

Brown explained that with the GA VSD+ compressor, Atlas Copco started with a clean sheet of paper back in 2007, and evaluated every part of an air compressor including the motor, cooling, drive train, electronic components, and air intake system.

Atlas Copco 1800 023 469 www.atlascopco.com.au manmonthly.com.au

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Oil-free compressed air helps yoghurt maker Organic yoghurt maker five:am needed clean compressed air but simply couldn’t afford an oil-free screw compressor. Luckily, Boge Compressors was able to help the Melbourne-based company out.

S

INCE 2011, five:am has been producing yoghurt in an environmentally friendly way.

The company uses local, organic ingredients and a conservative production process to reduce their ecological footprint as much as possible.

When searching for a cost-effective and energyefficient way to produce oil-free compressed air, the decision-makers at five:am came across the Boge Bluekat series. These oil-lubricated compressors produce Class 0 compressed air, as officially tested and certified by the TÜV SÜD, the most renowned test laboratory in Germany.

In the production of the organic yoghurt, some compressed air comes in direct contact with food.

One of the things it is used for is to aerate the milk in the silos. Other purposes include filling and then sealing and packing the different yoghurt pots, bottles and squeeze pouches.

The firm therefore required a solution that generated absolutely oil-free compressed air. Two compact type C 15 L screw compressors from BOGE with direct coupling and dryer now produce

Boge Bluekat oil-lubricated compressors produce oil-free compressed air to Class 0 standard. the compressed air, while a Bluekat BC Converter, with its converter principle, ensures that the compressed air is guaranteed purity class 0.

Thus the company, which produces around 45 tonnes of organic yoghurt a week, can depend upon maximum safety. At the same time, the system is low maintenance and low energy consumption.

Oil molecules converted to CO2 and H2O

five:am produces around 45 tonnes of organic yoghurt a week. manmonthly.com.au

With its Bluekat range, Boge developed a new concept that would combine the advantages of oil-injected compressors (low temperatures and significantly higher efficiency) with those of oil-free compressors (oil-free compressed air with no external multistage treatment).

The compressors are available with power ratings of 30 and 37 kW, and produce 3.71 to 5.01 m³/minute of oil-free compressed air at a pressure of 8, 10 or 13bar.

The system is based on a highly efficient oil-injected screw compressor with a special converter installed immediately downstream of the compression stage. The converter (also known as a catalytic converter) oxidises the oil, converting it to carbon dioxide and water.

The condensate that is separated out in the

after cooler has a hydrocarbon content of less than 2mg/l, which means that it can be discharged to the wastewater system without further treatment.

Advantages compared to other converters The integrated solution has significant advantages compared to an external downstream converter. When using an external converter, the air is cooled in the after cooler of the compressor and must then be heated to the required operating temperature of the converter.

Both the cooling and heating processes consume energy. The integrated converter has better heat management and is therefore significantly more efficient and cost effective. Additional cost savings are made since the condensate treatment process can be dispensed with.

“We are not just about leaving certain things out but, most importantly, putting only the right things into the product,” said David Prior, founder of five:am. This sense of a healthy and sustainable lifestyle applies to all manufacturing processes as well.

BOGE Compressors Australia 03 5940 3266 www.boge.net.au Manufacturers’ Monthly OCTOBER 2015 21

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Materials HANDLING ASRS improves cold chain performance The high costs of land, labour and energy are driving the increased use of Automated Storage and Retrieval Systems for the distribution of food and healthcare products requiring refrigeration. David Rubie outlines 10 benefits of using them.

1. Smaller building footprint

4. Reduced product & equipment damage

High bay Automated Storage and Retrieval Systems (ASRS) effectively use the available footprint in a distribution centre (DC).

With aisles in an ASRS also typically requiring up to less than a third of the space compared to those in conventional pallet storage systems, ASRS significantly reduce the total floorspace required to store a comparable number of pallets, typically by 25 per cent or more, depending on the height of the system.

By eliminating the need for manually operated forklifts, accidental damage to products, racks, freezer doors and other equipment is eliminated.

5. OHS benefits With no operational staff permitted within the ASRS warehouse, safety issues associated with the use of manually operated forklifts and pallet trucks are eliminated.

6. Inventory accuracy and security

2. Significant on-going energy savings

Accurate, real-time computer control of inventory locations in ASRS cold stores and freezers eliminates stock put-away errors that can occur in manual operations.

Furthermore, guaranteed inventory accuracy is a desirable selling feature for third party logistics (3PL) cold storage providers.

With ASRS providing fully automated operation, another benefit is significantly improved inventory security, which greatly reduces the potential for stock pilferage/shrinkage.

With ASRS enabling more pallets to be stored in a smaller cubic area, they reduce on-going refrigeration energy operating costs.

The smaller surface area of ASRS cold stores also reduces the impact of thermal transfer through the walls and roof area, further reducing energy consumption.

There is also limited lighting requirements within ASRS, and no need for large doors to be constantly opening and closing for forklift access, further reducing energy consumption.

When evaluating the costeffectiveness of ASRS in cold stores or freezers, it is important to factor in the continuing rise of energy costs over the system’s anticipated operational lifespan.

7. Error-free order picking Manually staffed cold storage DCs can experience several picking errors every day. Accurate inventory location management in ASRS and FIFO (first-in, first-out) inventory rotation ensures order accuracy and product freshness.

3. No need to work in harsh environments Employee turnover in cold store and freezer environments is typically higher than in conventional warehousing.

With all pallet handling within ASRS cold stores and freezers handled automatically, and the use of integrated in-feed/out-feed pallet conveyors, operational staff are not required to work in harsh cold 22 OCTOBER 2015 Manufacturers’ Monthly

8. Control of 'quarantined' products

store or freezer environments, with stock put-away and retrieval, order fulfilment, load consolidation and shipping taking place in ambient temperatures.

Staff working in freezers are also required to take regular breaks from working in sub-zero conditions, reducing productivity and increasing operating costs.

With ASRS, inventory that is quarantined for whatever reason is electronically locked-in and not available for picking.

9. Enhanced product quality Within ASRS, pallets in cold stores and freezers are optimally spaced manmonthly.com.au

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YOU KNOW THE BEAST allowing chilled air to circulate adequately to ensure product quality is maintained at all times.

10. Customer service excellence Customers expect accurate orders and even the occasional error can badly damage the cold storage provider’s reputation and relationship with their customer.

Cold chain growth According to a recent report from Markets and Markets, the global cold chain is expected to grow at a compound annual growth rate (CAGR) of 13.2 per cent between now and 2017, with the Asia Pacific region expected to constitute 22 per cent of the frozen food market by 2017, if it continues to grow at the projected CAGR of 17 per cent.

The increased popularity of chilled and frozen foods in Asia Pacific is a reflection of changing food preferences as consumers become more affluent, and that the infrastructure to support cold chain operations in the region is expanding. In China, for example, the frozen food market grew from nearly US$10 billion in 2007 to an estimated US$16 billion in 2012.

The growth of the cold chain sector is largely attributed to globalisation, which enables the import and export of perishable foods, technology advances in cold chain storage and transport, and growing acceptance of frozen foods amongst consumers. Chilled products account for the largest share globally, as most fruits and vegetables are stored and transported through this chain, with the frozen food market also expected to enjoy substantial growth for the next five years.

Case storage, picking & despatch In addition to ASRS pallet handling systems, Dematic has also developed a high-performance, accurate and costeffective automated case storage, picking and despatch processing solution for chilled and frozen goods.

Based on Dematic’s Multishuttle ASRS, the solution – which has been deployed by food processors, distributors and retailers in refrigerated environments in Europe and North America – provides an extensive range of advantages over manual distribution and despatch. manmonthly.com.au

Multishuttle systems can be linked to conveyors, with cartons conveyed directly to order consolidation areas or direct into shipping containers.

Multishuttle systems can also be linked to automated palletisers, which can further reduce the costs, errors and damage associated with manual handling.

The Multishuttle system solution greatly reduces the number of potential occupational health and safety (OH&S) hazards associated with the manual handling of heavy cartons, and reduces errors associated with incorrect picking.

NOW MEET THE BEAUTY

Summary With the range of fresh produce that requires refrigeration and the ongoing growth of the market for frozen convenience meals and foodstuffs, the demand for refrigerated storage is growing rapidly.

DCs that are optimised through the use of automated storage and handling technologies will be better positioned to cost-effectively meet this demand, and deliver high levels of customer service.

ASRS and Multishuttle systems provide competitive advantage by reducing labour touches and improving productivity, increasing service levels, minimising OH&S risks and enhancing order processing flexibility, while delivering comprehensive tracking, visibility and operational management capabilities. And ASRS and Multishuttle systems achieve this using significantly less space compared to conventional storage solutions.

ASRS and Multishuttle systems also allows businesses to review their cold supply chain networks and identify where they can consolidate refrigerated storage and distribution to reduce total supply chain costs and deliver superior operational capabilities.

With the cost of automation falling significantly in recent years, the business case and ROI for ASRS and Multishuttle systems has never been better.

[David Rubie is Manager Industry Logistics at Dematic] Dematic Pty Limited 02 9486 5555 www.dematic.com.au

The new Strenx portfolio of high strength steel for structural applications is the world’s widest selection of steel available in the 600-1300 MPa and 0.7-160 mm range. Strenx allows for stronger, lighter, smarter and more attractively designed products. That’s the beauty of Strenx: You can do more with less steel, and everybody wins.

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

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

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

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.

Manufacturers’ Monthly OCTOBER 2015 23

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Cooling& FANS Avoiding heat stress this summer With Australia’s summer set to be a scorcher, it’s vital employers and employees are aware of the dangers of heat stress. Alan Johnson writes.

T

HIS summer in particular, workers operating in hot and humid factories and workshops need to be aware of the heat hazards in the workplace and the associated symptoms.

Basically, heat stress occurs when the body cannot sufficiently cool itself. The body naturally reacts to heat by increasing blood flow to the skin’s surface and sweating. Sweat evaporation promotes cooling and an increase in blood flow means heat is carried to the surface of the body and released.

Symptoms of heat stress can range from weakness, dizziness and fainting to heat cramps, heat exhaustion and heat stroke.

People working in factories and workshops with poor ventilation and higher temperatures need to be educated on how to recognise heat stress symptoms and minimise the risks associated with such symptoms.

Implementing a comprehensive heat stress management plan that includes appropriate breaks, a healthy diet, regular fluid consumption and the use of protective clothing is vital in ensuring employees remain comfortable and productive at work.

A heat stress management plan can be something as simple as scheduling a more strenuous job to a cooler part of the day or assigning more workers to one job to reduce the physical demand on each worker.

Heat stress is a serious issue that can be life-threatening so employers need to do their very best to ensure workers are protected.

In hot humid and conditions, workers can sweat one to two litres of sweat, and in the process lose fluid as well as important nutrients like electrolytes. Consumption of diuretics and soft drinks can further exacerbate the problem by increasing frequency of urination.

Replacing fluid and electrolytes like sodium is important to keep the

24 OCTOBER 2015 Manufacturers’ Monthly

several factors including sweating, inadequate consumption of water, lack of palatability of fluids and limited access to water and electrolytes.

In addition to these factors, if workers consume too many diuretics like coffee and alcohol, the problem is exacerbated, increasing the rate of urination and fluid loss.

All that water needs to be replaced, and without adequate hydration, workers stand the risk of becoming dehydrated.

Symptoms of heat stress can range from weakness, dizziness and fainting to heat cramps, heat exhaustion and heat stroke. worker hydrated and prevent symptoms of dehydration like lack of coordination, low reaction time, fatigue, dizziness and headaches.

Excessive sweating also reduces the body’s ability to cool down, increasing risk of increased core body temperature and heat illnesses. Not replacing this fluid loss can increase the risk of injury, reduce productivity and cause long-term health problems.

Dehydration can be caused by

Impaired visual motor tracking, short-term memory, attention and co-ordination are some of the effects that have been observed from mild dehydration alone.

Legislation Under current legislative regimes there is no prescriptive ‘maximum temperature’ that employees may be exposed to.

This is due to the vast array of

working conditions across industries and work activities, with each Australian state having slightly different legislation.

However, all Australian employers are required to provide and maintain, so far as is reasonably practicable, a working environment for employees that is safe and without risks to health and safety, and that employers take all practicable steps to minimise the risk of heat hazards in the workplace.

Keeping hydrated One of the best ways to avoid heat related illness is to drink plenty of water. It’s important workers keep drinking water even if they don’t feel thirsty because this can prevent them from becoming dehydrated.

Workers are advised to avoid alcoholic, hot or sugary drinks (including tea and coffee) because these can make dehydration worse.

When dehydrated, the body needs more than water alone and needs to replace the essential nutrients lost through sweat; electrolytes.

Blood pressure, fluid balance and muscle contractions are some of the key functions that electrolytes help regulate in our bodies.

A sodium enhanced drink, which is low in carbohydrates, can help workers replace fluid and electrolyte losses.

Supplying easy access to adequate drinking water and electrolytes in a cool shaded area for workers, scheduling frequent breaks can help workers remain hydrated.

Electrolyte drinks are available in both sugar and sugar free options and are formulated for higher palatability to help increase fluid consumption.

In addition to hydration, cooling products have been shown to reduce physiological strain and increase effimanmonthly.com.au

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cient work time by up to 10 per cent.

Cooling neck ties, hard hat inserts, cooling towels and evaporative vests can increase a body’s natural ability to dissipate heat.

Heat related illnesses The Federal Government’s Healthdirect Australia advises employees and employers to look out for the following heat related illnesses.

HEAT RASH – This is an itchy, painful rash commonly called ‘prickly heat’. It is caused by excessive sweating during hot, humid weather, and particularly affects young children.

Symptoms: A cluster of red pimples or small blisters, particularly on the neck or upper chest, or increases in the groin, elbow and under the breasts.

What to do: Move to a cooler, less humid environment. Keep the affected areas dry (powder can help), and avoid using ointments or creams because they keep the skin warm and moist which can make the condition worse.

DEHYDRATION – This occurs when the body doesn’t have enough water and other fluids to carry out its normal functions.

Symptoms: Dizziness, tiredness, irritability, thirst, dark yellow urine, loss of appetite, fainting.

What to do: Drink plenty of water or diluted fruit juice and avoid tea, coffee and alcohol. Move somewhere cool (preferably air-conditioned), and if possible use a spray bottle filled with water to cool you down. If you start to feel unwell call your doctor, the nearest emergency department or healthdirect on 1800 022 222.

HEAT CRAMPS – These usually affect people who sweat a lot during strenuous activity causing the body to lose salt and water. This can lead to heat cramps.

Symptoms: Muscle pains or spasms. Heat cramps can also be an early symptom of heat exhaustion.

What to do: Stop all activity and lie in a cool place (preferably airconditioned) with your legs raised slightly. Drink water or diluted fruit juice, have a cool shower or bath, massage your limbs to ease the spasms and apply cool packs. Do not manmonthly.com.au

What to do: Call triple zero (000) immediately and ask for an ambulance. While you are waiting for help, move the person to a cool shaded area and keep them as still as possible. Remove excess clothing and give them small sips of water if they are conscious and able to drink.

Bring their temperature down any way you can, for example by gently spraying them with cool water from a spray bottle or garden hose, soaking their clothes with cool water, or sponging their body with cool water.

Place cool packs under their armpits, on the groin or on the back of their neck to reduce body heat. Do not give aspirin or paracetamol because they won’t help and may be harmful. If they are unconscious, lay the person on their side (the recovery position) and check they can breathe properly.

Perform CPR if needed.

WHERE CAN I GET HELP? – If you are unwell, contact your doctor or go to the nearest emergency department. If you think your symptoms are Employers need to do their very best to ensure workers are protected from heat stress. serious, call for an ambulance immediately on triple zero (000). If calling triple zero (000) does not work on threatening emergency. Immediate go back to strenuous activity for a your mobile phone, try 112. first aid aimed at lowering the body few hours after the cramps have While you are waiting for an temperature as quickly as possible is subsided. If they continue for more ambulance try to cool yourself down. very important. than one hour seek medical attenYou can do this by placing icepacks Symptoms: A sudden rise in tion. under your armpits, on your groin body temperature, red, hot dry skin HEAT EXHAUSTION – This is the or on the back of the neck to reduce (because sweating has stopped), dry body’s reaction to losing excessive body heat. Take a cool shower or bath swollen tongue, rapid pulse, rapid amounts of water and salt. (if you feel well enough) or spray shallow breathing, intense thirst, Symptoms: Heavy sweating, pale yourself with cool water from a spray headache, nausea and vomiting, dizziskin, fast and weak pulse rate, fast bottle. ness, confusion, poor coordination or and shallow breathing, muscle weakYou can also call healthdirect on slurred speech, aggressive or bizarre ness or cramps, tiredness and weak1800 022 222 to talk to a registered behaviour, loss of consciousness, ness, dizziness, headache, nausea or AD_ F ENI NDJ UL _ 1 0 . p d f Pa ge 1 8 / 0 6 / 1 0 , 1 1 : 5 1 nurse 24 hours a day, 7 days a week. seizures or coma. vomiting, fainting.

What to do: Move to a cool place (preferably air-conditioned) and lie down. Remove excess clothing, take small sips of cool fluids, and have a cool shower, bath or sponge bath.

Put cool packs under the armpits, on Cost Effective Solutions for the groin or on the back of the neck your automation technology needs to reduce body heat. If symptoms Australia wide. last for longer than one hour, call We specialise in your doctor, the nearest emergency Systems Integration department or triple zero (000) for an and Projects ambulance.

Big and Small.

HEAT STROKE – This occurs when the body temperature is not Industrial Software & Electronics controlled properly and it rises Tel: (07) 3856 2232 Fax: (07) 3355 1012 above 40.5 °C. It is the most serious Email: info@industrialsoftware.com.au heat-related illness and is a life-

PC & PLC Programming Video Image Processing

Manufacturers’ Monthly OCTOBER 2015 25

AM

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Coolers & FANS Commercial fans

MA 0 2 1 5 _ 0 0 0 _ S G F 1 The fans range in size from 2.4 to 4.2m diameter.

BIG Ass Fans has launched Essence, a new fan in Australia that’s a bit different from the traditional, enormous industrial fans the company is named for.

Ranging from 2.4 to 4.2m in diameter, the fans are designed to provide quiet, comforting air movement more suitable for commercial spaces such as food/beverage areas, offices and lobbies, and soundsensitive environments.

When designing the new fan, the company said its engineers started by identifying shortcomings of existing fans and then replaced the traditional, geared ceiling fan motor with a maintenance-free, permanent magnet drive.

The motor features multiple microprocessors that monitor room conditions, like temperature power use and so on, in order to ensure lasting performance.

In air conditioned spaces, the fan’s breeze is said to reduce reliance on expensive, energy-intensive air conditioning. In the summer, the fan’s breeze can create up to a 5.5°C cooling effect, so building managers can raise thermostat setpoints to reduce air conditioning usage by up to 30 per cent.

During colder months, the fan can be slowed to gently push warm air trapped at the ceiling down to occupant level, lowering heater usage. Additionally, the fan is damp rated so it can be used indoors or out, serving as an energy-efficient alternative in spaces where air conditioning is impractical.

Big Ass Fans 1300 BIG ASS 2 0 1 5 - 0 1 - 1 6 T1 3 : 4 3 : 2 8 + 1 1 : 0 0 www.bigassfans.com.au

We make drive systems comfortable and reliable.

Robust. Lightweight. Flexible.

Proven innovations from SGF for more than 40 years.

Flexible Couplings made in Germany.

More about SGF: Contact Australia: SGF Asia Pacific Pty Ltd No:15, 191-195 Greens Rd Dandenong South 3175 Victoria. Australia.

Phone: +61 (0) 3 9791 9393 Fax: +61 (0) 3 9792 0159 sales@sgfasiapac.com Süddeutsche Gelenkscheibenfabrik GmbH & Co. KG kontakt@sgf.de, www.sgf.de

26 OCTOBER 2015 Manufacturers’ Monthly

manmonthly.com.au

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ADVERTORIAL

Iconic Australian Dairy Producer leads the way with automation

A

leading Dairy producer has built state of the art facilities that even its competitors admit provide significant productivity gains – and the key is automation.

Australian manufacturing continues to operate in an environment with reduced profit margins due to increases in manufacturing costs and relatively small economies of scale. The company faces the expectation of upholding high Farmgate milk prices, but needs to deliver on price to stay competitive.

The company managed to face these challenges head on with its purpose built facilities for the Coles own-label milk contract, which according to the AFR, “barely requires human employees”.

They have its sights set on growing its milk production through investing in leading edge manufacturing and supply chain capabilities that will connect it to the Asian growth markets. It is working towards creating a more efficient manufacturing environment, where downtime is minimised and data is well managed. This was achieved in the Coles-brand milk facilities by working with Wonderware Australia.

Wonderware Australia specialise in software solutions to help industrial businesses measure and improve performance and have over two decades of experience. Wonderware

is backed by Schneider Electric and offers assistance including in product selection, training, consultation and tech support.

Wonderware’s software and associated services allows visibility on the manufacturing process. This allows for quantitative analysis of data to identify bottlenecks in the process and other areas of potential savings.

Furthermore, changes in the process can be measured against the base line data to ensure that the system is providing a return on investment.

The short shelf life of milk further drives the need for “just in time” manufacturing basis and there are no stock holdings, making process predictability critical. This includes the reliability of the manufacturing assets and also their performance ratings.

Under this manufacturing model it is critical to understand the capacity of the plant to meet the scheduled production as failure to meet schedule incurs financial penalties.

The Wonderware Manufacturing System works by acquiring SAP process orders and using them to instruct the AGV’s and other systems on the manufacturing floor on the production requirements. The system presents the work orders in sequence and in the event of an abnormal condition, business users can select

from the Work Order display which job they would like to start.

Data is then collected through the process and held in the Wonderware system for further analysis and completed pallets information is sent back to the SAP system.

Due to the installations success with Wonderware Australia it plans to roll out the system in its new facilities.

These facilities will be built with the aim of fulfilling the company’s vision of being the first choice dairy food supplier to consumers and customers in Australia and the major growth markets of Asia and the Middle-East.

For more information on Wonderware Australia, visit www. wonderware.com.au.

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Australians OVERSEAS Goodbye doesn’t mean for ever There are countless examples of Australians leaving the country and achieving spectacularly overseas. Is it right to consider this a brain drain? Brent Balinski collected some perspectives.

Expat achievements

Lack of local appetite for risk; a small domestic market; the tyranny of distance: the reasons for Australian businesspeople taking their ideas overseas all sound pretty familiar.

In manufacturing and other fields, there is no shortage of brilliant Aussies who have excelled internationally, but done so while living abroad.

“The reality is we live in a global world, and the reality is we have so many global jobs back home in a smaller market,” Serafina Maiorano, CEO of Advance since 2008, told Manufacturers’ Monthly.

Maiorano lives in Brooklyn, New York, and heads the global network with a membership of 25,000 (in over 90 countries) of the country’s expat community, which numbers roughly a million.

The CEO said reasons frequently given for leaving included study, career opportunities, and seeking to build a business through chasing investment or closeness to a market bigger than the local one.

Advance held its fourth Global Australian Awards last month, recognising the achievements of expats. At a time when public discussion often includes the topic of commercialising the great ideas Australians have, the awards’ Advanced Manufacturing winners in 2012, 2013 and 2014 – Saul Griffith, inventor and CEO/founder of OtherLab; Peter Le Lievre, founder of Chromasun; and Chris Boshuizen, CTO and co-founder of Planet Labs – prove that it can be done.

The Global Australian Award winner in the Advanced Manufacturing category, Dr Rodney Brooks, founder, chairman and CTO of Rethink Robotics, left Australia in the late 1970s to study a PhD in Computer Science.

Choosing between Stanford and Carnegie Mellon universities in the US, he went with the former, as the west coast of the US is geographically the closest to home.

“When I left, I didn’t expect to 28 OCTOBER 2015 Manufacturers’ Monthly

stay in the US, actually; I expected to be back in Australia in a few years – but it didn’t turn out that way,” Brooks told Manufacturers’ Monthly.

The robot builder has achieved considerable successes as an academic and an entrepreneur, spending a decade leading the MIT Artificial Intelligence laboratory and then the Computer Science and Artificial Intelligence laboratory, and co-founding iRobot and Rethink Robotics.

Like many Australians, Brooks was drawn to the US by academia opportunities. He currently lives in Boston, and returns here “at least twice a year.”

Many of this country’s entrepreneurs make the trip across the Pacific Ocean. The large number of Australians – estimated at around 22,000 currently – migrating to Silicon Valley has gained attention in recent years.

The appeal of the northern Californian innovation hub to talented young Australians is easy to understand: a thriving, cashed-up ecosys-

tem full of ambitious individuals wanting to change the world through technology.

“The main advantage of The Valley is that if you want to talk about any technology that’s emerging, you send a few emails and you’re meeting with the CEO of that company,” explained Marita Cheng, the 26-year-old founder of Robogals and Melbourne robotics start-up 2Mar, and the 2012 Young Australian of The Year. She was also a mentee to Le Lievre in 2013, through the Advance Global Australian Awards mentoring programme.

Cheng recently attended the 10week Singularity University Graduate Studies Program at NASA AMES Research Park, funded by Google. As part of the intensive entrepreneurs’ programme, she co-developed a new app using machine vision to recognise and describe objects to vision impaired users.

“Everyone who’s working on the latest technology is living and work-

ing there and wanting to be at the new frontier of the technology,” the robotics entrepreneur told Manufacturers’ Monthly.

“And it’s so motivating to meet with so many ambitious people who want to lead with their technology and harness it to make our lives better.”

Have ideas, will travel The country’s lack of anything like a Silicon Valley frequently comes up in conversations about innovation.

In recent years, many Australians have made a mark in the Bay Area hub that grew following the birth of the semiconductor industry in the late-1950s.

With a population of around three million, The Valley’s top 10 companies have a market capitalisation of around $1.7 trillion, according to some recent sums. Many start-up successes exit and join or form venture capital firms, investing in the next big disruption. manmonthly.com.au

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“It is all about a culture of creative destruction, and we don’t have a creative destruction culture here,” offered Chris Gilbey, CEO of Imagine Intelligent Materials (IIM) and a serial entrepreneur. IIM is a graphene and composites technology business, spun out of the University of Wollongong, where Gilbey was formerly Entrepreneur In Residence at the ARC Centre for Excellence in Electromaterials Science HQ. “What we have in Australia – I’m not criticising it, I’m just calling it for what it is – is a tall poppy syndrome; people make money and people go, ‘Why him? Knock him down’,” Gilbey told this magazine.

“That’s why you get people like the guys who started Atlassian who go and IPO their company in the US and do most of their capital raising in the US.” As well as a contrast in attitudes, the Australian venture capital environment is “particularly unhealthy”, according to Gilbey.

According to the Australian Private Equity and Venture Capital Association (AVCAL), US VC companies invested $US 240.7 million in Australian start-ups for the year to June 30, 2014. This was triple what Australian firms invested in Australian start-ups in the period.

Last month’s interim Senate report into Australia’s innovation system identified a number of barriers to commercialising ideas. At the top

Dr Rodney Brooks, founder, chairman and CTO of Rethink Robotics. of the list, was a “lack of innovation culture and appetite for risk – as innovation is largely about market experimentation, risk of failure needs to be accepted or at least tolerated.”

A sign of the disconnect between finance and ideas was that, of 178 submissions, there was only one from a technology investment organisation (AVCAL), or the finance sector in general.

The local unwillingness to invest in new businesses and other disincentives – such as high taxes – was hampering start-ups, said Gilbey, and is expressly different to attitudes in the US. “In Silicon Valley, there’s that fundamental culture that says, ‘We welcome people to come here and create new wealth, and we’ll help them do it’,” he said.

“So to create wealth you have to start with the simple proposition of saying, ‘We want to reward those people who are determined enough and greedy enough to want to make an absolute shitload of money.’ Because the people who want to make a shitload of money are going to hire a lot of other people.”

Brain drain or brain chain?

Serafina Maiorano, CEO of Advance. manmonthly.com.au

The expatriate community of entrepreneurs and other achievers should not be viewed as a loss, but very much as a resource, according to Advance.

“The fact that Australians are really excelling around the world – we shouldn’t see that as a brain drain; it’s actually an incredible resource for the country to tap into, to lever-

age the knowledge, the skills, the influence,” said Maiorano.

“We talk about infrastructure like IP or schools or hospitals or things like that, and we see this as human capital infrastructure. This as social capital that Australia has the opportunity to leverage more.”

Professor Roy Green, Dean of UTS Business School, said Australians seeking their fortunes overseas could be viewed as both a loss to, and an extension of the country’s innovation ecosystem.

“Where entrepreneurs are leaving because they can’t build a business here and have to go abroad, I think that’s unfortunate and we ought to be able to provide an infrastructure and a market and market support that would be sufficient and attractive to keep them here,” he told Manufacturers’ Monthly.

“But if it’s about developing the market, as Atlassian is doing and as other startups are doing, and therefore repositioning in other parts to do so but retaining a connection to Australia, then that can be a positive.

Because it’s essential if you’re developing a global business to go beyond Australia.”

Advance and its members are quick to point out that Australians were always happy to give back when asked, in mentorship and other areas, and retained a strong connection back home.

“I think I’ve tried to be a part of the Australian community the whole time I’ve been away: I do come back regularly, I visit robotics groups, I’ve

been connected,” offered Brooks.

The topic of a perceived brain drain probably won’t go away, especially as the country looks to create new sources of wealth as the resource industry’s profitability declines.

Some say Australian policymakers and others aren’t doing enough to attract start-ups to form, grow, and create jobs and income.

Gilbey said his company, formed last year as NanoCarbon, was footloose and would put down roots wherever there was the most incentive to do so – “we could move to Singapore or the US, or whatever.”

At the moment, a Sydney location was a “lifestyle choice”.

“What countries like Australia need to understand is it’s only when a business has established itself, committed to the capital expenditure, built a presence – a geographic presence – that is hard to move from, it’s only when they’ve done that that companies are committed to growth in that area,” he said.

The lure of venture capital and the possibility of being near where the action is in the US and elsewhere remain strongly appealing for promising Australian businesses looking to grow. This week Freelancer CEO and founder, Matt Barrie, opined “anyone mildly interesting with a brain is fleeing [Sydney] to go overseas”.

How the issue is dealt with – or if it’s an addressable problem in itself – differs.

On the positive side, high-performing Australian emigrants retain a connection to their home (and this connection needs to be strengthened to be of the most benefit), said Maiorano.

Plus, they all seek to return someday, she added, citing Larry Marshall, who returned from a quarter of a century in Silicon Valley and who is currently putting his years of start-up experience to use as CEO of CSIRO. “So they’re not a loss to the country,” said Maiorano.

“And he’s always been helping.

Even when he was overseas, he was helping Australia as well. So they do it in a quieter way that might not always get the headlines.”

Advance advance.org Manufacturers’ Monthly OCTOBER 2015 29

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What’sNew Ethernet switch

Offers excellent grip for steep incline/decline applications.

Longitudinal rib conveyor belting RYDELL announces the availability of Ammeraal Beltech LR Series longitudinal rib conveyor belting designed for conveyors requiring excellent grip.

Products in several applications are transported via an inclined or declined conveyor where grip is of the utmost importance. The company has developed a series of belts with elastomer covers, which in combination with their C32 longitudinal profile meet customer expectations.

Key features of LR Series longitudinal rib conveyor belting include ultimate grip for steep incline/decline applications; high cover coefficient of friction; excellent

abrasion resistance; good impact resistance; self-cleaning cover impression; and Ziplink versions featuring quick pin splice technology.

The LR Series longitudinal rib conveyor belts find use in applications involving packaging; incline/decline conveying; multipurpose conveying at distribution centres, post offices and airports; box, paper handling and processing; wood processing, cardboard, general handling and tyre industry; and general industrial applications.

Rydell 02 9831 7300 www.rydell.com.au

CONTROL Logic has unveiled the newest addition to the Red Lion 1000 Series hardened Gigabit Ethernet switch.

The 1008TX eight port full gigabit unmanaged switch is aimed at future proofing network by means of lower latency Gigabit Ethernet on all ports, supporting a maximum through put of 16Gb/s including jumbo frame support.

Built for the most extreme environments, the industrial switch is housed in a 39mm wide compact metal enclosure for excellent EMI protection.

It boasts a high vibration of 200g, wide operating temperature range of between -40°C and +85 °C and high reliability of over 2 million hours Mean Time Between Failure.

This ensures zero down time for mission critical data transfer.

The switch complies with IEEE 1613 for Electric Utility Substations and NEMA TS1/TS2 for Traffic Control.

Control Logic 1800 1800 557 705 www.control-logic.com.au

Designed to help future proof your network.

No drip external mix atomizing nozzles

The nozzles are CE compliant.

30 OCTOBER 2015 Manufacturers’ Monthly

EXTERNAL mix atomizing spray nozzles mix liquid and air outside the nozzle and allow the air and liquid flows to be adjusted independently. The patent pending, No Drip External Mix Atomizing Spray Nozzles work in the same way as the company’s standard Atomizing Nozzles do, but have the added benefit of positively stopping liquid flow when compressed air is shut off.

When spraying any type of liquid, post-spray liquid flow can cause big problems. Unwanted drips can ruin product function on sealing or mating surfaces. Drips can also ruin the appearance of painted or coated finishes.

In addition, excess liquid flow wastes precious resources such as expensive coatings, chemicals or water.

EXAIR’s No Drip Atomizing Nozzles are ideal where no post-spray drip is permissible. When the compressed air supply is shut off, the no drip nozzle positively seals off the flow of liquid, eliminating the possibility of drips.

Available from Compressed Air Australia, the nozzles are offered in three different liquid patterns: round, narrow angle flat fan and wide angle flat fan. They are for pressure fed applications where precise liquid flow is needed. External nozzles can be used on liquids up to 800 centipoise.

Applications include painting, coating, rinsing, cooling, quenching, wetting (moistening), dust control and humidification. The compact nozzles are fully adjustable to minimise air and liquid consumption and have interchangeable liquid and air caps. They are CE compliant and conflict mineral free.

Compressed Air Australia 1300 787 688 www.caasafety.com.au

manmonthly.com.au

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Brought to you by

Lightweight flow hood TESTO has introduced a new Bluetooth-enabled flow hood weighing less than three kilograms for use by HVAC technicians and other professionals.

The Testo 420 is equipped with a volume flow hood and 16 measurement points that record differential pressure, temperature, humidity and absolute pressure readings.

The company sought to address the need for accurate flow hood readings by HVAC technicians when developing the Testo 420 device.

To do this, they designed the instrument so that it could attach and detach from a flow straightener, ensuring precise measurements while also enabling professionals to meet indoor air quality guidelines.

The flow hood is engineered for convenience, with the design meeting the needs of HVAC specialists who often have to register air flow readings at inconvenient or even hazardous places.

Two ergonomic handles have been integrated to the sides of the Testo 420, allowing users to tilt the instrument to easily read the display.

Another useful feature enables HVAC technicians to reach vents in high-ceilinged industrial facilities.

Users can attach the volume flow hood to a tripod and remove the flow hood from the main device. The tripod is then extended to cover the vent with the technician receiving the readings remotely.

The Bluetooth-enabled Testo 420 also allows easy app integration. Technicians can quickly download the app from Google Play or the Apple Store, and view real-time measurements on their smartphones.

Testo MA 1 0 1 5 _ 0 3 1 _ A N C 1 2 0 1 5 - 1 0 - 0 6 T 1 3 : 01300 6 : 837 2 4861 + 1 1 : 0 0 www.testoaus.com.au

The flow hood has a robust construction to withstand rough working conditions.

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info@anca.com Manufacturers’ Monthly OCTOBER 2015 31

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What’sNEW Servo drives

The devices can be used for water with or without conductivity.

Compact vortex flow meters ifm efector has launched a new range of space-saving vortex flow meters designed to inform the user quickly and clearly about the current volumetric flow.

Using the multi-colour TFT display that can be rotated electronically, the user can set the red/green colour selection for process values. Installation of the vortex flow meters can be independent of orientation due to the optionally available rotatable G and R process connections.

The compact device also features an integrated temperature measurement function.

Behind a bluff body integrated in the measuring pipe, the flowing medium generates swirling vortices depending on its velocity. These vortices are detected by a piezoceramic sensor with the number

of vortices allowing the flow rate to be determined if the cross-section is known.

This flow rate measurement principle, known as the vortex principle, is virtually independent of pressure and temperature fluctuations of the medium.

Recommended for use in cooling water circuits, the new SV type devices can be used for water with or without conductivity.

The current flow and temperature are output as standardised current signal (4...20 mA), frequency signal, switching output or via IO-Link optionally. Combining the vortex principle with a simple design, the affordable sensors also feature intuitive menu-guided programming. ifm efector 1300 365 088 www.ifm.com

MACHINE builders that traditionally have used separate servo drives to meet high axis-count and power requirements for large custom machines can now consolidate to a single platform with the new AllenBradley Kinetix 5700 servo drive from Rockwell Automation.

The servo drive offers dual-axis servos, a large 1.6 to 60 kilowatt power range, and time-saving tuning technology.

Used in place of multiple servo drives, this next-generation platform can help machine builders reduce cabinet-space requirements by up to 70 per cent, reduce wiring requirements by as much as 60 per cent, and achieve easier configuration and commissioning.

The servo drive uses Load Observer real-time tuning technology, which helps remove the need to tune each individual axis.

Removes the need to use multiple servo drives for This can help machine builders high axis-count and high power requirements. deliver high-performance motion control out of the box, and reduce commissioning time by days, weeks or even months for the largest machines.

Once a machine is operational, the servo drive uses Tracking Notch Filter technology to detect and remove resonant frequencies, and automatically make tuning adjustments over time to help optimise machine performance.

This can reduce the need for regular tuning maintenance and help prevent machine failures.

DSL feedback ports provide support for Kinetix VP servo motors with single-cable technology.

This enables machine builders to package motor-power, brake and feedback wires all in a single cable, helping to reduce motion wiring requirements by as much as 60 per cent.

Rockwell Automation 03 9757 1111 www.rockwellautomation.com

Industrial in-house label printers

Designed for use by manufacturers.

32 OCTOBER 2015 Manufacturers’ Monthly

LABEL Power has launched Epson’s new ColorWorks C7500 Pigment Ink industrial in-house label printers. The colour inkjet desktop label printers have been developed to help manufacturers meet a wide variety of in-house, on-demand, customised labelling requirements.

The range incorporates Epson’s new PrecisionCore Micro TFP line printhead which has been specifically developed for use in the commercial grade, industrial labelling market and lasts for the lifetime of the printer.

This printhead ensures excellent reliability alongside the ability to print 600x1200dpi quality labels on a wide variety of materials including matte, gloss and synthetic media.

In addition, it’s capable of a wide range of formats and

sizes up to 108mm wide and print speeds up to 300mm/ sec. Sharp, high-quality results are achieved through the use of Variable Sized Droplet Technology (VSDT) which produces ink droplets in a range of precisely controlled sizes.

Nozzle Verification Technology and dot substitution help prevent misprints and dead pixels to ensure consistent printouts. The printers use the company’s pigment ink in high-capacity cartridges to give fast drying labels that are smudge, water and fade resistant. The integrates into most operating systems.

Label Power 07 3710 7000 www.labelpower.com.au manmonthly.com.au

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Brought to you by

Push-back pallet racking solution DEMATIC has launched a high-density storage solution for warehouse operations - Colby Push-Back Pallet Racking.

The racking provides high-density storage where pallets are stored up to six pallets deep. Using a forklift, pallets are pushed back on carts on inclined rails mounted inside the racking. As a pallet is withdrawn, the cart holding a pallet behind automatically slides forward to the front position.

Push-Back Pallet Racking is a great alternative to double-deep or drive-in racking because it makes great use of space, while still allowing fast and easy access to stock. The system operates on a First In Last Out (FILO) basis.

According to the company, the racking is ideal for bulk storage, order consolidation, and despatch. All carts are of rigid frame construction and run on large wheel bearings for smooth performance. The rails enclose the wheels, preventing any dislodgement of the carts and keeping the running surface free of debris. Stopper plates locate the pallets securely on all carts.

It includes all the features of Colby’s selective racking: the diamondslot profile, which provides a stronger and more efficient interlock between upright and beam; front and rear upright protectors to avoid damage; and rack end protection for worker safety.

Dematic 02 9486 5555 www.dematic.com.au

The racking is recommended for bulk storage, order consolidation, and despatch.

Socket kit for trucks and trailers QR24 sensor for demanding applications

LUCIDITY Australia has released a plug-in socket kit designed to reduce installation time and cost for transport operators.

The new plug-in technology ensures transport operators only need to wire once when installing lighting and electrical elements on trucks and trailers.

Previously, an auto electrician was required for installing lighting and wiring hardware in trucks and trailers.

The OMP plug-in socket kit is a complete solution that allows all lighting and electrical elements of a trailer to plug into a common series of connectors and can be adapted to operate multiple sockets on the front and rear of the truck. The system is compatible with all current 12V and 24V plugs.

A world-first technology developed in Australia, the socket kit enables socket replacements without electrical knowledge, reducing maintenance time and costs for transport operators.

Key features of the socket kits include ability to operate side and front markers, licence plate and work lamps, beacons and rear combination lamps; direct interface to battery charging hardware manmonthly.com.au

Reduces maintenance time and costs for transport operators. and voltage boosters, commonly found on many trailers; and connectors colour coded for easy replacement.

According to the company, the system’s design has been completely thought through from sockets to side markers. It can reduce time to install, and lowering maintenance costs with fast to replace components.

Simple plug-ins can be supplied to meet the demands of any combination of lighting, wiring or hardware.

Lucidity Australia 03 5821 3966 www.lucidityaustralia.com.au

IN order to meet the demands of harsh applications, Turck has expanded its QR24 line of contactless rotary position sensors to include a version with stainless steel housing.

Available in SSI or with incremental outputs and equipped with 316 stainless steel housing, the new variant is built to withstand harsh environments such as those involving chemicals or high-pressure water sprays.

The wear-free performance of the existing QR24 line combined with the stainless steel housing makes the stainless steel variant an ideal solution for applications that encounter extreme environmental conditions such as in the food and beverage and off highway equipment industries.

The stainless steel sensor features a fully potted and sealed IP69K/IP68-rated housing to protect against moisture and dust. It also offers flexible parameterisation via IO Link or easyteach, allowing the sensor to easily adapt to specific application requirements.

While rotary feedback is crucial in many

The stainless steel sensor features a fully potted and sealed IP69K/IP68-rated housing. installations, many rely on their mechanical bearings to provide proper tolerance and position of the internal system. After time, mechanical wear, vibrations, potential leaks in bearing seals, etc. can contribute to premature failure.

The sensor provides customers with contactless position detection, executing the same functions but without the need for contact or bearings, allowing for a longer and more reliable solution that saves installation time and costs.

Turck Australia 03 9560 9066 www.turck.com.au Manufacturers’ Monthly OCTOBER 2015 33

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The last WORD Local car industry set to survive in parts While Australia will no longer be making cars after 2017, Bosch Australia is one company in the auto supply industry which plans to continue manufacturing here. Alan Johnson reports.

W

HAT happens to the current Automotive Transition Scheme (ATS) is set to be a key factor in determing how Australian auto component makers survive beyond 2017.

Oliver Wolst, VP Automotive Electronics with Bosch Australia, said the company is presently evaluating future investments in Australia with the potential of a new production line for its high-efficiency diodes (HEDs), which act like a one-way electricity valve in a vehicle’s alternator.

“As well as global competition within a global company, a lot depends on the environment here in Australia, in particular the Federal Government’s policy settings,” Wolst told Manufacturers’ Monthly.

He said the cancellation of the ATS will make it more difficult to manufacture here and could impact the company’s decision on a new $14m production line.

“With the ATS we have a much better chance to win contracts then without it,” he explained.

He pointed out that the automotive supply industry is still successfully operating here in Australia, and benefiting from the scheme.

Currently the Bosch Clayton facility is supplying 20 per cent of all the world’s diodes. Following the closure of the Germany production plant several years ago, it is now the sole Bosch diode producer.

Bosch Australia manufactured 92 million diodes in 2014, with 100 per cent of Bosch Australia’s diode production destined for export. Wolst predicts this number will grow further this year to around 100 million diodes, valued at around $60m.

Being competitive Wolst explained that Bosch Australia is very competitive with Germany when it comes to manufacturing diodes, but says the question is not about being competitive with Germany, but being competitive with Taiwan and China.

34 OCTOBER 2015 Manufacturers’ Monthly

“We are seeing a strong potential for growth, with the market continuing to grow with more and more cars being built globally.”

On top of that, he said, there is a growing demand for alternators with 10 diodes, instead of the normal six.

“This is quite a growth potential for us, coupled with the growth in our external customer business,” he said.

While Wolst admitted the low Australian dollar is helping the company on the sales side, he said it is having a negative impact on the material purchasing side, with most of the company’s raw materials imported.

“But overall the low Australian dollar is a positive for us,” he said.

Diode production

Bosch Australia expects to manufacture 100 million diodes this year, with 100 per cent of them destined for export.

“Despite having significantly higher labour costs here, we remain competitive, but it’s a continuous battle,” he said.

“On the positive side we have a very highly experienced and efficient team both in the workshop and management. Our staff turnover is very low, and despite increased salaries, we have been able to reduce production costs over the past three years.”

He explained that the company’s diode team of around 110 works on average three shifts a day, five days a week. Though, when demand

increases they do run weekend shifts.

“There is a high degree of automation at the production plant, with only 20 to 25 people per shift running six production lines,” he said.

Wolst pointed out that the diodes are not only destined for Bosch alternators, but the company produces a small but growing number of diodes for third party customers.

“This only happened earlier this year, but already we are seeing excellent results, especially in China,” he said.

Wolst explained that there are two phases to manufacturing a diode, as in most semi-conductor industries.

“First there is a wafer manufacturing phase where the active material, the silicon, is processed in a clean room environment. This is where the functionality of the silicon is actually established,” he said.

He said the next phase in the process, the assembly, can be challenging because of the high power to be managed in the diodes.

“These diodes are very different from the diodes we produce for digital devices. The housing is a large piece of copper, and therefore [making them involves] an exotic assembly process where basically the silicon is completely enclosed in two copper blocks,” he said.

“This ability to produce a semiconductor with high functionality plus [the ability] to conduct current in a very high temperature environment is the key to the technology.”

Wolst admitted much of the technology was developed in Germany but also pointed out that, since all production moved to Australia seven to eight years ago, the development of new manufacturing and assembly processes are carried out here. manmonthly.com.au

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SAFETY WITH STYLE!

Scott Safety’s new First Base 3 Bump Cap is stylish and practical. It protects heads from knocks, bumps and lacerations, offers sun protection and features a lightweight ‘breathable’ safety shell, for workers who want to look and feel cool. With its flexible internal padded shell covered in a washable and stylish fabric cap, the First Base 3 Bump Cap provides the wearer with comfortable lightweight head protection. So while it doesn’t replace a safety helmet for higher risk areas, it can protect you from those painful annoying injuries we’d all rather avoid.

TO FIND OUT MORE, VISIT WWW.SCOTTSAFETY.COM OR CALL US ON 131 772. © 2015 Scott Safety. SCOTT, the SCOTT SAFETY Logo, SCOTT SAFETY and FIRST BASE, are registered and/or unregistered marks of Scott Technologies, Inc. or its affiliates.

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