Manufacturers' Monthly September 2011

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Publisher Michelle Graves michelle.graves@reedbusiness.com.au Editor Sarah Falson Ph: (02) 9422 2480 Fax (02) 9422 2722 sarah.falson@reedbusiness.com.au Journalist Annie Dang Ph: (02) 9422 2964 Fax (02) 9422 2722 annie.dang@reedbusiness.com.au Editor-at-large Alan Johnson Ph: (02) 9422 2325 Fax (02) 9422 2722 alan.johnson@reedbusiness.com.au Graphic Designer Ronnie Lawrence ronald.lawrence@reedbusiness.com.au Creative Director Julie Coughlan Production Co-ordinator Mary Copland Ph: (02) 9422 2738 mary.copland@reedbusiness.com.au VIC/Overseas Sales Michael Northcott PO Box 3069 Eltham VIC 3095 Ph: 0448 077 247 michael.northcott@reedbusiness.com.au NSW Sales Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067.

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Inside SEPTEMBER 2011

For daily news visit manmonthly.com.au

26

4 Editorial ■

Are factory closures always bad news?

8

Spotlight on TCF: what it takes to make it big in today’s textiles, clothing and footwear manufacturing sector.

6 Comment ■

Heather Ridout: “Workplace Act not so fair.”

■ Senator Carr: “$20 billion to clean up Australia.”

38

8 Analysis News ■ ■ ■

Victorian bushfires prompt factory opening.

Endeavour Awards 2012 entries now open!

Cement closure blames taxes.

16 Management ■

30 What’s New

Moving your business.

■

18 IT Technology ■ ■

Consumers going ‘green’.

Optimising 3D folding of metal.

■

This month’s top new manufacturing products.

Focus: dust and fume control.

■ ■ ■

35 Production Control 22 Insider Series ■

■

Up-skilling: a solution to the skills crisis?

46 Forklifts & Attachments

26 Made in Australia How to survive in TCF.

Managing real-time efficiency.

38 Metalworking ■

■

EMO Hannover, the best releases of 2011.

Additive manufacturing lowers titanium costs.

Heavy-duty goggles protect against particles.

■

Choosing the right laser cutting machine.

Laser cutting quotation system.

■ ■

Komatsu, Honda join forces for the environment.

Versatile, ergonomic electric forklifts range.

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Editorial

SARAH FALSON – Editor

editor@manmonthly.com.au

Plant closures: just bad press?

The media plays a role in setting the tone for industry, and self-fulfilling prophecies are born of constant bad news. Sometimes, the silver lining deserves the ‘scoop’.

I

HAVE a confession to make: I’m guilty of publishing hardluck headlines to attract reader attention. Just Google ‘manufacturing Australia’ and they’re not hard to find. Factory closures have taken-up their fair share of page space over the past few months – both online and offline. But I come to you a changed woman: I’ve seen the error of my ways and realised that when a facility closes, it isn’t always bad news.

Over the last three months alone, Silex Solar announced 30 jobs would go at Australia’s only PV panel solar cells manufacturing facility, with production going to a third-party supplier; 72 workers were made redundant after Kresta moved its venetian blinds manufacturing to Asia; and Australian Envelopes entered administration, leaving its entire workforce – 300 employees – without jobs.

These stories grabbed headlines, and rightly so. It was like watching a car crash, as the saying goes. Yes, sometimes the news we provide isn’t good, but sometimes those black clouds have a silver lining – it isn’t all just bad press.

In reality, Silex Solar’s closure is actually part of a company

When plants close and workers leave, companies can put the wheels in motion to stop, breathe, and re-boot.

restructure, which will see it focus on a new, high-performance solar cell. Kresta will now offer an expanded range of blinds, at cheaper prices. Australian Envelopes has been bought and renamed Envotec, and will expand its old operations to become significantly larger than ever before.

In each of these situations, workers lost jobs and the industry felt down-trodden. But when the companies re-enter the market with their smarter, leaner, more sustainable business plans, this will result in more jobs for Australians – not only in the

newly-launched factories, but at the suppliers providing the machinery, IT systems, service, support and business consulting, export finance and logistics costs for the new ventures.

The majority of you reading this column are business-owners, directors, executives or staff responsible for your company’s finances. I’d say Manufacturers’ Monthly readers would understand better than anyone that cutting off the fat from your operations is just good business practice. Executives need to look after their shareholders, partners, investments and profits.

Profits won’t come if the new product offerings aren’t at the heart of the new strategy, so consumers should benefit, too.

And yet, there is a stigma surrounding manufacturers that close their factories. Should they really be blamed for cutting costs? Off-shoring aside, many of these phoenixes rising from the ashes will be bigger, meaner operations, employing more workers – some with new, dedicated R&D facilities, and others with plans to use their expertise to tap into new markets.

In the case of off-shoring, manufacturers shouldn’t be cast aside as ‘un-Australian’ or ‘shortsighted’. As a regular reader of ours said recently: “It is not done because of a rising dollar or any other excuse. It is done so that they can make a bigger profit.

Nothing wrong with that, just don't try and cloak it with some other excuse.”

Agreed. Yes, off-shoring is horrible news for working families and our economy. I’ve written about this topic enough to know that this can have a harrowing impact on the industry.

However, if the owner of an Australian manufacturing company looks at the books and realises there is no other option than making the tough decision to outsource production, does the media really have the right to name and shame them?

I think I can safely say that our readers always do their best by our industry – and if that’s true, then it’s all good news to me.

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4 SEPTEMBER 2011 Manufacturers’ Monthly

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Comment

HEATHER RIDOUT – CEO Australian Industry Group

editor@manmonthly.com.au

Workplace Act not so fair The Fair Work Act is discouraging productivity, hampering the ability of companies to restructure and maintain flexible workforces. Heather Ridout writes for MM.

I

T IS critical that employers across all sectors, including manufacturing, are able to maintain flexible and productive workplaces. The recent appeal lodged by Ai Group against the decision in the Fair Work Australia (FWA) ADJ Contracting case goes to the heart of this issue. We believe that a number of clauses in the Communications, Electrical and Plumbing Union’s pattern agreement for the Victorian electrical contracting sector, approved by Senior Deputy President Acton of FWA, are unlawful. The clauses in the Union's agreement restrict legitimate commercial arrangements between employers and the contractors and labour hire providers that deliver support to their business. The

6 SEPTEMBER 2011 Manufacturers’ Monthly

agreement also grants expansive union entry rights and requires that employers encourage union membership.

While the appeal decision is yet to be handed down, the final outcome will have considerable cost implications for employers in the manufacturing, construction, transport and other industries. The appeal decision will be an important precedent because industries need the flexibility to use contractors and labour hire.

Often union clauses imposing restrictions here are falsely badged as 'job security' clauses.

Preventing Australian companies from maintaining a flexible and productive labour force destroys jobs and competitiveness.

Australia needs a workplace relations system that promotes

labour market flexibility and productivity growth, not one that inhibits this. There is a very strong case in support of the view that the Fair Work Act is not encouraging productivity improvements and is hampering the ability of companies to restructure and to maintain flexible workforces.

While there are many other challenges facing manufacturing at present, the creation of another barrier to growth is not sensible. Australia’s productivity has plummeted over the past decade, while strong wages growth has occurred. In the manufacturing sector, for example, the combination of poor productivity and solid wage outcomes has put us firmly on the bottom rung of countries in terms of unit labour

costs – a measure that combines wage and productivity outcomes.

Australia’s annual average unit labour costs rose by around 3.2% per annum between 1999 and 2009 – well above the OECD average of around 1% p.a. This has put us well and truly behind the eight ball.

While workplace relations is far from the only element in the competitiveness equation – an equation that includes skilling and education, innovation, infrastructure, tax policy and much more besides – workplace relations is nevertheless central to improved productivity performance.

With unions pressing the boundaries of the Fair Work Act with costly and damaging claims, Ai Group’s extensive efforts to preserve labour market flexibility and productivity growth have never been more important. www.aigroup.com.au

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Comment

SENATOR KIM CARR – Minister for Innovation, Industry, Science & Research

editor@manmonthly.com.au

Cleaning up Australia The Clean Energy Future package puts $20 billion on the table for industry to re-tool. That's an offer too good to turn down. Senator Carr writes for MM.

Y

OU don't come to manufacturing if you're not prepared to fight through hard times, whether you're a government minister or a firstyear apprentice. That is true in Australia, as it is around the world. We have entered a new era of uncertainty, and manufacturers are fighting for their future.

Every worker and firm approaches that struggle with their own priorities and needs.

Australian factories deserve the right to assess their situations, and decide if they have a future worth claiming. My decision is clear: it makes sense to manufacture in this country, and for governments to invest in industry.

We have a world-class research power-house, including one of

the world's top-ten applied research agencies, CSIRO. We have a stable business climate and intellectual property regime.

We have broad and deep manufacturing capabilities. We are about to introduce a new R&D Tax Credit. We pioneered a new model for comprehensive business support, Enterprise Connect. We have worked with industry to build a strong network of advocates and supply chain programs.

These are the elements of a strong and responsive manufacturing sector, ready to keep pace with change. Innovation is about taking control of our destiny, as an industry and as a nation.

The carbon price is no different. It's simply another plank in Labor's agenda for change – an

agenda laid down, with industry, two years before Tony Abbott discovered his passion for Weet-bix and Ford cars.

Compared to the other pressures we face, from the high dollar to the uncertainty in the global outlook, the immediate impact of the carbon price on most manufacturers will be small. It is far out-weighed by what this new package puts on the table for industry.

This plan will not only push Australia's progress in clean technology, getting better, cheaper products onto the market for the manufacturers who need them. It will channel $1.2 billion in grants to industry firms who want to cut their energy bills or break into the clean technology market. There is a further $9.2

billion to support innovation in trade-exposed industries with a heavy carbon footprint.

When the investment and infrastructure boom triggered by Clean Energy Future hits, Australian manufacturers have got to give themselves the opportunity to get in on the contracts.

They don't need special favours – they just need a fair chance to compete. It's up to us to get our firms into the clean tech supply chain early.

We're not here to scrape together some carrots to throw to handpicked firms. Every firm deserves real opportunities for the future.

Labor will transform the economy, firm by firm, and region by region, shoulder to shoulder with Australian manufacturers. This nation has extraordinary potential – and it's worth more than the carbon price of a Tim-Tam. www.innovation.gov.au

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I N

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MAC011/A

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Manufacturers’ Monthly SEPTEMBER 2011 7

AnalysisNEWS New facility fights fire with fire Following the Victorian Bushfires Royal Commission, new opportunities in manufacturing products for electricity utility services have arisen, with a new plant opening in Moolap, Geelong. Hamish Brooks writes.

I

N late July, Victorian Premier Ted Baillieu cut the ribbon for a new manufacturing facility for fire-resistant products for the electricity transmission and distribution sector.

The plant, owned by Dulhunty Poles, was launched following a commission recommendation for the creation and implementation of technologies that greatly reduce bushfire risk.

With a long history of supplying and manufacturing products for electricity utility firms, the Dulhunty Group of companies identified an opportunity to manufacture fire resistant, nonconductive power poles.

“We received a GIIF [Geelong Investment and Innovation Fund] grant of $750,000 to help us set up the plant,” said Dulhunty Poles executive director Tony Wingrove.

“Total investment in the plant is $4.5 million to date with the majority coming from private investors. Our initial production capacity is 8,000 units.”

Dulhunty’s Titan distribution poles – made from cement and fibreglass – are an exciting technology leased from CMT of Atlanta, GA and developed with assistance from glass manufacturer, Owens Corning.

“The machinery at Moolap uses principles supplied by our technology partners but with significant developments arising from cooperation between our engineers and those of several local companies,” said Wingrove.

“The poles are light, have very high fire resistance and are nonconductive compared with traditional wood and steel reinforced power poles.”

A number of Geelong-based businesses participated in the project: local companies Blue Circle and Rohm & Haas provide the materials from which the poles are made, while nearly ten 8 SEPTEMBER 2011 Manufacturers’ Monthly

Dulhunty Poles executive director Tony Wingrove explains the fire resistant qualities of the Titan poles (inset) to Victorian Premier Ted Baillieu (right). Images: Barefoot Media Photography.

other businesses – Atex Steel, LMS Designs, Notley Engineering, GoodOne Patterns, Salt Electrical, Stuart Miller Design Solutions, Lange Engineering, MacDowell and Venn, and Integrated Automation – helped design and build the plant.

At the launch of the factory, Wingrove was effusive in his praise for the industry and expertise the area could provide.

“I think it is a very good example of a multiplying effect going on that all stems from investment in a single project,” he said.

The plant currently employs nine people but is expected to employ a further 21 when at full capacity, which is predicted to happen over the next 12 months.

Just prior to the official opening, the company secured a multi-year contract to supply

poles to a global authority in the pacific region.

“Various pole types (for the order) will take up more than 40% of the plant. Fittings may be required but sales and other support will be made from Geelong,” said Wingrove.

“The poles will be used in a coastal area subjected to strong wind conditions.”

The future appears bright for Dulhunty Poles, with interest in their products from South East Asia as well as other states in Australia. Wingrove said that if the company is required to expand its manufacturing facilities to support future demand, the engineering, design and other support will be sourced from the Geelong companies who participated in the Moolap plant construction.

Given its light weight and durability, the Titan pole also has

a number of other applications beyond fire-prone bushland.

“It is very well suited for installation in rough terrain, including by helicopter. Also, we are investigating marine applications such as mooring or jetty piles. Termite zones in many parts of Australia are another target for the Titan pole,” said Wingrove.

“We also intend to develop an un-burnable, non-conductive cross-arm which will eliminate pole top fires – a very common problem for utilities.”

Utilities throughout Australia and New Zealand are actively investigating the Titan pole.

“Given that it is an entirely new product in the Australian environment, a great deal of testing is being done by interested companies,” said Wingrove.

Dulhunty Group 02 9870 7277, www.dulhuntypower.com manmonthly.com.au

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HE strong Australian dollar, overseas competition and rising electricity prices continued to stall activity in the local manufacturing industry in July, with growth falling a massive 9.5 points to 43.4 – which is well below the 50-point mark separating expansion from contraction.

The result was disappointing, especially since the Australian Industry Group - PwC Australian Performance of Manufacturing Index (Australian PMI) indicated manufacturing growth occured in June for the first time since February.

New orders showed serious decline during July, reducing 14.4 points to 40.2. Decline in activity was evident across the manufacturing sectors, with only three of the twelve subsectors expanding in July: construction materials; miscellaneous and paper; and printing and publishing.

Wood products and furniture was the weakest-performing subsector during the month.

The strong Australian dollar, increased import competition and uncertainty around carbon pricing all clearly affected activity during July.

Australian Industry Group chief executive, Heather Ridout, said the strong Australian dollar and lessening demand for manu-

factured products were the main factors affecting the July PMI. "The difficulties facing manufacturing due to the high dollar and sluggish domestic demand intensified in July. The survey respondents indicated that adding to their broader concerns was the prospect of a carbon tax and this was clearly weighing on sentiment. Perversely, the only indicators of broad business conditions showing an increase were input costs and wages, both of which are negatives for the industry,” she said.

For Ridout, July indicated a serious problem for Australia’s manufacturing sector – one that is unlikely to be turned-around unless the local dollar falls compared to the US dollar.

"We are currently in the midst of a gloom and doom economy and I defy anybody to say with any degree of certainty what the impact would be on the Australian economy if the dollar remains at current levels for a protracted period. The high dollar and high interest rates are impacting on the big employing sectors in Australia. This together with the volatile and precarious state of international economic conditions and ongoing political uncertainty in Australia are seriously undermining business confidence in large parts of the economy," Ridout said.

Comment at manmonthly.com.au

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10 SEPTEMBER 2011 Manufacturers’ Monthly

BY SARAH FALSON

What you missed last month…

• Future workplace conditions to be decided by 41,000 Aussie workers (http://bit.ly/q8QC6H) • Now is not the time for carbon tax (http://bit.ly/qPxzyZ) • Australian manufacturing “under siege”; BlueScope Steel to review operations (http://bit.ly/pH8lOs) • Carbon tax to hit only 400 companies, gov says (http://bit.ly/n9zVKq) • Mining not the long-term answer for manufacturing (http://bit.ly/pUx7SU) Never miss out again! Follow us @manmonthly for all the latest news, product information and comment pieces from the industry.

manmonthly.com.au

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AnalysisNEWS

Manufacturers’ Monthly Endeavour Awards 2012, celebrating Australia’s best

BY SARAH FALSON

NOMINATIONS are now open for the ninth annual Manufacturers’ Monthly Endeavour Awards program, which recognises companies and individuals for their contributions to the Australian manufacturing industry.

After nine years and almost 1,000 worthy finalists, the Awards have gone from strengthto-strength, this year rewarding entrants in 13 industry segments.

In 2012, Manufacturers’ Monthly adds a new category to the mix, celebrating exceptional women in the industry through the new ‘Female Manufacturer of the Year’ award.

This category recognises the importance of females in today's manufacturing sub-sectors.

Entrants should illustrate how women of any age, at any skill level, have affected positive change in manufacturing processes, management, training, or skills development in Australia.

According to the managing director of homewares manufacturer Anasazi Trading, Margaret Butler, the standard of nominations for this category is likely to be quite high, showcasing the strength female workers bring to manufacturing and engineering.

Butler founded Anasazi in 1992, manufacturing stainless steel accessories for the bath and kitchen. At the time, this composition was used almost exclusively in commercial applications.

Butler pioneered the concept into the domestic consumer market, within the first year establishing a distribution base of several hundred retailers. Today, Anasazi sells to more than 800 leading retailers.

“Women deserve to be congratulated in supporting our vibrant and growing manufacturing community. We are natural collaborators of ideas and our innovative approach to getting things done is highlighted in the quality of 12 SEPTEMBER 2011 Manufacturers’ Monthly

Supporting our industry A very special thanks to those companies pledging their support for the 2012 Manufacturers’ Monthly Endeavour Awards: • SICK for Safety Scheme of the Year; • Phalanx Consulting Group for Australian Consumer/Trade Product of the Year; • EFIC for Exporter of the Year; • Atlas Copco for Environmental Solution of the Year; • Industry Capability Network for Global Integration Award; • BlueScope Steel for Australian Steel Innovation Award; and • BOC for Australian Industrial Product of the Year.

For 2012 sponsorship enquiries, please contact Michael Northcott on 0448 077 247, or email michael.northcott@reedbusiness.com.au

A new category for 2012 recognises women for their manufacturing achievements. Pictured: Margaret Butler, founder of successful homewares manufacturer Anasazi Trading.

what women are now achieving in this important industry,” she told Manufacturers’ Monthly.

The official list of categories for the ninth annual Endeavour Awards is as follows: Technology Application of the Year, for successful applications of new technology in manufacturing processes.

Australian Consumer/Trade Product of the Year, for innovative new consumer/trade products.

Australian Industrial Product of the Year, for innovative new industrial products.

Australian Steel Innovation Award, for innovative products or projects using Australianmade steel.

Exporter of the Year, for companies who are successfully entering or developing an export market with a new or existing locally-made product.

Environmental Solution of the Year, for successful implementation of solutions designed to reduce the environmental impact of manufacturing operations.

Enterprise Connect Significant Achievement Award, recognises manufacturers who have made a

significant achievement in productivity, competitiveness or innovative capability since completing their Enterprise Connect Business Review and Tailored Advisory Service project(s). [This award is for Enterprise Connect clients only.]

Global Integration Award, for companies who are successfully engaged in global supply chains.

Safety Scheme of the Year, for the successful implementation of schemes to improve safety in manufacturing plants.

Young Manufacturer of the Year, for the rising starts of Australia's next generation of manufacturers.

Lifetime Achievement Award, designed to recognise a person who has made a significant individual contribution to Australia's manufacturing industry.

Manufacturers' Monthly Most Innovative Company Award, recognising Australian manufacturers and suppliers which have looked 'outside the box' to implement new business ideas.

Female Manufacturer of the Year, for females who have affected positive change to manufacturing processes in Australia.

Manufacturer of the Year Award, will be chosen from among the winners of the above categories.

Nominations for the 2012 Manufacturers’ Monthly Endeavour Awards should be easy. The entry form, which can be found on our website (URL below), shows clear criteria for each category, ensuring entrants meet the judges’ requirements.

In the next issue of Manufacturers’ Monthly, we will meet the members of the judging panel lending their expert opinions to decide which company or individual deserves to become a member of the growing Endeavour Awards honour roll.

Watch out for their bios in the October issue.

In the meantime, the floodgates are now open. Enter the ninth annual Endeavour Awards today and join the fast-growing list of companies and individuals being celebrated for their manufacturing prowess.

Manufacturers’ Monthly Endeavour Awards 2012 Enter: www.manmonthly.com.au/awards Info: Margaret Tra 02 9422 2759, margaret.tra@reedbusiness.com.au manmonthly.com.au

AnalysisNEWS EVENTS SEPTEMBER 1–2: 2011 Queensland Supply Chain & Logistics Conference The conference is designed for supply chain, logistics, transport and procurement professionals and practitioners. To be held at the Sofitel Hotel in Brisbane, this year’s conference theme is ‘Solving the Supply Chain Puzzle’. Go to www.qldscc.com 6–9: Asia-Pacific’s International Mining Exhibition (AIMEX) Held once every four years, AIMEX is the largest trade event for the AsiaPacific mining industry. Held at the Sydney Olympic Park in Homebush, the exhibition is an interactive meeting point for Australian and international suppliers of mining technology.

Visit www.aimex.com.au 14: 2011 Logistics & Materials Handling Mercury Awards The Mercury Awards recognises individuals and companies that have contributed to the success of Australia’s logistics and materials handling industries. To be held in Sydney. Buy tickets at www.logisticsmagazine.com.au/awards 19–24: EMO Hannover 2011 This global trade fair for metalworking technology will showcase developments from single machines to complete production systems. Held in Germany, the show will focus on cutting and forming machine tools, manufacturing systems, precision tools, automated material flow, control and drive engineering and accessories.

Visit www.emo-hannover.de

OCTOBER 25–27: The Safety Show, Sydney Materials Handling and Bulkex The Safety Show is New South Wales’ only dedicated workplace health and safety trade show. It is co-located with Sydney Materials Handling, showcasing materials handling solutions and new products for Australian industry. Bulkex is also part of this year’s show, providing solutions for the bulk materials and powder handling industries. Go to www.thesafetyshow.com.au, www.materialshandling.net.au and www.bulkex.com.au

14 SEPTEMBER 2011 Manufacturers’ Monthly

Taxes blamed for closure

C

EMENT Australia has blamed government taxes and regulations for causing the closure of its Kandos, New South Wales, manufacturing facility, affecting the jobs of 98 employees.

Sixty-four workers will lose their jobs as the plant closes over the coming months; 34 workers will be offered another role within the company’s other manufacturing facilities in Gladstone (Queensland), Railton (Tasmania) and Bulwer Island (Queensland).

Cement Australia chief executive officer and managing director, Chris Leon, told Manufacturers’ Monthly that government taxes are putting increasing pressure on manufacturing businesses in Australia.

The carbon tax will only aggravate this in the future, he said.

“The decision is not directly related to the carbon tax, however current regulation and government imposts are an increasing burden on manufacturing in Australia and this is a major concern for trade exposed industries like the cement industry. The carbon tax will exacerbate this,” Leon said.

Cement Australia, together with the Cement Industry Foundation, rallied government to ease pressure on the business in the lead-up to the closure – which was announced in July.

“The Cement Industry Foundation and Cement Australia have been consistent in highlighting to all politicians the increasing burden of regulation and government imposts on manufacturing, particularly trade exposed industries,” said Leon.

Shadow Innovation Minister, Sophie Mirabella, agrees that taxes are to blame for the closure – and other recent manufacturing closures to boot.

“The Coalition has repeatedly warned that this government’s policies will push manufacturers over the edge only to be greeted by arrogant disregard by the Prime Minister,” she said.

“Many manufacturers operate on very thin margins because the

The Kandos facility had trouble attracting skilled staff and meeting government regulations.

regulatory and policy environment is so bad at the moment.”

Cement Australia’s Kandos plant became the latest in a stream of established manufacturer to close their doors in Australia this year.

The manufacturer joined Fairy Meadow's Poppets Schoolwear (24 jobs lost) and Australian Envelopes (300 made redundant), both reporting that a looming carbon tax, increased overseas competition, a high Australian dollar and skills shortages contributed to their decisions.

Cement Australia’s Kandos plant has reportedly been in trouble for a number of years, despite the company investing a large sum of money in to production and staffing improvements at the plant.

“It has been a challenge for some years to operate the Kandos plant viably. In 2007, Cement Australia spent $10 million improving the plant and stabilising the workforce due to a growing skills shortage.

Unfortunately, despite these measures and continuing to work together with their people at Kandos, the plant is no longer viable,” said Leon.

The cement manufacturer is now focussing on its employees, attempting to ease the pain as some of them are transitioned to other facilities.

Those not lucky enough to secure another position within

The cement manufacturer is now focussing on its employees, attempting to ease the pain as some of them are transitioned to other facilities. the company will be offered counselling services.

According to Leon, Cement Australia is fully-committed to helping its staff members through this hard time.

“Our first concern was communicating with our people at Kandos. Now we are focusing on helping them through this difficult time as best we can by providing support services for them and their families,” said Leon.

“This includes information about the training options we will be funding, financial planning advice for the families and relocation assistance for the 34 people we have been able to offer new roles in other locations.”

Cement Australia’s remaining three manufacturing sites are reportedly world-class facilities.

Leon claims the company places a strong emphasis on continuous improvement at these sites.

Update: By the time this publication went to press, Cement Australia had also announced it would sell its Parkhurst, Rockhampton factory, which was vacated in 2009.

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OUR business's property lease is about to expire and you've decided to move your operations elsewhere your equipment, products and staff are all ready to go. But is there anything else you need to consider?

Managing director Paul Anderson of Corporate Real Estate Australia (CRE Australia), a Melbourne-based strategic property advisory firm, says there is one last critical stage that needs to be carefully assessed and executed when moving your factory: the 'Make Good' process.

“Lease expiry Make Good costs can be a very unwelcomed surprise and can have serious implications for cash flow and business continuity," Anderson told Manufacturers’ Monthly.

According to Anderson, typical repairs required by industrial building owners in the Make Good process include: the treatment of 'cut-edged' corrosion and replacement of impact-damaged metal wall and roof cladding sheets; the coring of concrete slabs to remove racking and equipment anchor bolts, as well as the subsequent concrete repairs; the redecoration and recoating of epoxy warehouse floors; the replacement of internal ceiling and floor finishes; and modifications to the building's electrical and fire services.

Though tenants are ultimately responsible for the repairs to industrial buildings prior to the lease expiring, Anderson says the Make Good also places pressures on the building owner.

“From the building owner's perspective, there are concerns that the investment asset will be returned in a state of disrepair at lease-end, which will require capital expenditure to bring the property asset back into a good state of repair to attract a new tenant," Anderson said.

Moving factories is like moving apartments: you need to leave the place as you found it or you won't get your bond back.

"From an occupier's perspective, there are concerns that [he or she] will be faced with a huge Make Good repair bill at lease-end in order to meet the repair and reinstatement obligations contained within the lease agreement."

To prevent hefty Make Good costs, Anderson recommends that both building owners and tenants adopt an open and transparent approach to leasing prior to signing the lease agreement.

"I always recommend that explicit reference is made to the provision of a Schedule of Condition/Condition Report, which is a 'day one', factual account of the condition of the premises," Anderson said.

"Once completed by a recognised professional, the Schedule of Condition/Condition Report should then be referred to and included within the lease agreement as the recognised 'day one' condition of the premises. The cost to mitigate its risks to undertake such a report is nominal in contrast to the possible cost of not doing so."

[To find out how to avoid a hefty bill when your business's lease expires, read the expanded version of this article at http://bit.ly/oyShuV.] Corporate Real Estate Australia 03 9225 5089, www.creaustralia.com manmonthly.com.au

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TechnologyIT@MM ence the right parts we can reduce the impact far better than just focusing on what happens on the factory floor,” he said.

“Plus in the US we are finding that the more public the brand, or closer to the consumer, the more interest in our Sustainability product by manufacturers.”

However, when manufacturers have to choose between a focus on a lower carbon footprint or energy consumption, Phansey says the jury is still out.

"If you are talking about large appliances or cars then the focus is on energy efficiency, because it also includes lowering running costs,” he said.

"But if you are talking about consumer products such as a water bottle or a Kindle, then carbon is the metric that most people understand the best.

"We have tried to take the spirit of that and put it into the software and show how to compare it with relative products.

Environmental product design Consumers’ demand for sustainable products will only increase over the coming years. Manufacturers are advised to get on board. Alan Johnson reports.

I

F YOU think the present media ‘noise’ about the environment and greenhouse gases will blow over, think again.

The truth is, sustainability issues are here to stay. Product quality, time-to-market and cost are set to dictate how engineers approach product developments.

According to Asheen Phansey, the US-based product manager for SolidWork's Sustainability, choosing products based on their carbon footprint will be equally as important as design validation in the coming years. He says now's the time to get prepared.

"Manufacturers should start talking to their customers,” he said.

One of our clients, a machine designer, once told me everything he does is completely cost driven; 'I have never been asked 18 SEPTEMBER 2011 Manufacturers’ Monthly

by a customer to look at the environment, why would I present something that might cost more?' he asked.

"My response was: don't assume it will cost more and if you find something that costs more and your customer is not interested, don't buy the software. But if your customers start talking about sustainability saying 'this company did an environmental impact statement on my product and you didn't', you have been warned."

Phansey says looking at the whole lifecycle of a product is another real trend at present.

"What happens between the front and rear door is not often the total environmental impact – it’s what happens upstream and downstream. If we can measure the whole life cycle and influ-

The final number is not as important as being, say, 20% better than older versions."

According to Phansey, SolidWorks is the only CAD product that has an innovative simulation product embedded.

"All others use external software where users loose the ability to run simulation the same time as sustainability,” he said.

"Users can do a trial simulation, do a study, go back and their environmental footprint will have already been updated.

Sustainability is a feature incorporated into two product forms of SolidWorks 2010 and later versions – an Xpress model which is fully featured sustainability software but can only be used on parts, and a Professional version which can be used on parts and assemblies.

Both versions display a dashboard at the bottom of the SolidWorks user interface that provides information about a design's prospective carbon footprint, air impact, water impact and energy consumed in manufacturing.

The software, which can detail (in real time) the environmental impact of parts, assemblies, and the design decisions that go with them, is said to have exceeded the company's expectations.

"It's our fifth leg; documentation, data storage, simulation and modelling, and now simulation.

We are finding more and more manufactures are using their 'green' credentials as a selling tool,” he said.

"If you rely on regulation to sell your product, you are not creating a competitive advantage by following the law.

"So using tools like ours, an innovation tool which allows a company to tell their story about their products, is the right thing to do, and customers want it.

"We are finding companies are doing the whole process, designing with Sustainability and doing a full lifecycle assessment and publishing the results.

"Last year was really the first full year we had the product out there in the market and we are really seeing its adoption pick up. There has been excitement in sales basically across all industries, all geographies, almost everywhere.”

He said in the beginning Sustainability was being used at the end of design, to check its environmental impact and see production options.

"I think that's fine to start with, to get a feel for different materials, but the software is going to be more successful as it moves upstream,” he said.

"Starting with a blank sheet, users can try out Sustainability and have it run as they design the part. The software is really made for that – every time they make a decision in SolidWorks it updates automatically," Phansey said.

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Technology IT@MM New software creates better designs, faster SIEMENS PLM Software’s Solid Edge ST4 software helps machine designers develop better products, faster.

The latest release includes a range of new customer-driven functions including enhancements to synchronous technology to facilitate better product designs, improved multi-CAD collaboration using the JT data format, new tools to accelerate sheet metal design validation, and further refinements to its drafting capability to help reduce documentation costs.

The company has introduced a new automated ‘live sections’ capability allowing users to more easily and quickly create and edit revolved parts.

New 3D modeling relationships facilitate the centering, offsetting and editing of native or imported geometry.

Siemens PLM Software www.siemens.com/plm

Optimising 3D design and manipulation of folded metalwork with new features LANTEK has enhanced its Flex3d software for the design, folding/unfolding, and 3D cutting of tubes, profiles and sheet metal parts as part of the latest 2011 versions of its software.

The new features are said to represent a major advance for the sheet metal industry, providing it with a more flexible solution with comprehensive functionality, capable of being tailored to meet the needs of individual users.

The software is said to have the power to manage large-scale projects and incorporates the most advanced 3D design technologies in its architecture.

The company says it has also significantly improved the software’s CAD data exchange capabilities, with speed improvements of 300%.

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The new features are said to represent a major advance for the sheet metal industry.

cations, and comprises eight specific modules, enabling the user to perform folding and unfolding tasks; work with tubes or profiles; and carry out integrated design and manufacture with SolidWorks, Autodesk Inventor, Solid Edge, CATIA, Creo Elements/Pro and Siemens NX. In the 2011 version of Lantek’s software, all the modules incorporate new intuitive functionali-

ty which makes 3D design and manufacture faster and easier for the user, the company claims.

Within the Lantek Flex3d product family the company has focused on three modules in particular: Lantek Flex3d Tubes, Steelwork and 5x, all designed to help in the simplification of design and manufacture, and to improve competitiveness.

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Management software for metal fabrications IDRONIC has released LaserQuote, a business management software system aimed at small-to-medium metal fabrication job shops.

The software is designed to manage all aspects of a business, from customer relations to quoting parts and controlling production. It also integrates with a company’s accounting software.

The system currently supports export of customer data, suppliers and subcontractors, invoices and purchase order to Quickbooks.

This is done by producing a single export file within the company’s web browser, which can export multiple invoices and client data files in one shot.

According to the company, the new buciness management software offering covers all aspects

of running a metal fabrication job shop.

The software has a wide range of functionality which includes customer and supplier communications (CRM); production control (intelligent scheduling); programming and material resource planning; shop floor data collection – bar codes and keyboard; simple parts and complex assemblies; intelligent purchasing; integrated inventory; personal calendar (tasks, alerts etc); document repository; and BOM and specialised wizard for profile cutters (laser cutting, water jet cutting, plasma cutting etc).

Users can use one, many or all of the features, with the interface customisable with sections of the platform able to be switched on or off.

Idronic 07 3123 0290, www.idronic.com manmonthly.com.au

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SKILLS, TRAINING & RECRUITMENT

SPCArdmona found that providing existing staff training lead to better production quality and less downtime.

compounded by a drift of skilled workers to better remunerated sectors, including resources and infrastructure projects.

So if managers aren’t hiring, and the pool of workers from which to choose is getting smaller, how can Australian businesses ensure they have the technical know-how to keep up with their competitors?

Especially with production technology becoming increasingly technical and the pressure from rising utilities and materials costs worsening.

Up-skilling against shortages You don't always have to look far to find skilled workers; growing your employees' capabilities is beneficial for the whole company. Hartley Henderson writes.

W

ITH the high Australian dollar and increased overseas competition causing contractions in Australia’s manufacturing sector, a number of business managers

are hesitant to raise staff numbers until stability in the sector improves.

At the same time, continuing skills shortages in many areas of manufacturing are being

Skills utilisation The Sage SME Business Sentiment Index 2011 highlights new challenges that are emerging as manufacturers adjust to a lower-growth business environ-

ment. Major challenges identified by the research include rising costs, and revenues rising at a slower rate, in turn resulting in cash flow management issues.

In particular, the research shows that there is concern regarding recruitment of new employees, with manufacturers realising that, in a tightly-fought market, having access to the right skills is essential.

Increasingly, companies are looking at what they can do to find the skills they need from within their own remits. Upskilling staff is a smart option.

According to Alan Maguire, education and training advisor with Australian Industry Group (Ai Group), it is important that manufacturers prepare a workforce development plan that clearly identifies the skills required.

“Ai Group can provide advice on developing a plan to meet current and future skill needs, and then tapping into funding sources, including government

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22 SEPTEMBER 2011 Manufacturers’ Monthly

manmonthly.com.au

grants for opportunities such as apprenticeships or traineeships,” he said.

“Apprenticeships can be an excellent way to up-skill existing employees or to introduce new personnel who can be moulded to a company’s needs and culture.

“Although automation is leading to a lower requirement for process and manual workers, there is an increasing need for higher skills in trade areas, as well as business management.

“Ai Group can assist in brokering successful partnerships with training providers, introducing pilot training initiatives, implementing competency standards, and accessing specialised training such as lean or competitive manufacturing.”

CEO of Manufacturing Skills Australia (MSA), Bob Paton, says 45% of employees in manufacturing do not have a formal postschool qualification, meaning there is a need to recognise the skills these people have, bench-

mark them, and then build from there.

“There is a range of government funded programs, such as the enterprise-based Productivity Places Programs, that are directed at up-skilling existing workers.

“Many firms have a competitive manufacturing focus with a view to improving productivity, and lean and agile manufacturing elements can be rolled into training and qualifications,” he told Manufacturers’ Monthly.

“Substantial benefits can also be achieved by taking people with trade-type skills and building on that to produce fully qualified tradespeople in a significantly reduced timeframe.

“Although multi-skilling has eased off in more recent times following earlier demarcation disputes, it is still a common practice in some areas.

“It sometimes applies to those with a dominant trade background who wish to develop other skills, or perhaps produc-

tion workers who want to broaden their skills by getting involved in scheduling, for example. Companies are increasingly happy to take advantage of government supported training programs because they can see a good return on their investment.”

On-line training On-line training (or e-learning) is providing a growing pathway to workforce development, and is often used to support other types of training.

Hayley Beck, manager brand management at the Australian Flexible Learning Framework (AFLF), says the Framework provides the national training system’s e-learning strategy.

“We offer mostly free e-learning products, resources and support networks to help training organisations, business and industry to adopt or expand their use of e-learning,” she said.

“A benchmarking survey has revealed that 50% of respon-

dents use e-learning as part of training they provide to employees; 60% expect their use of e-learning in the provision of employee training to increase in the next two years; and 85% said they would encourage their employees to use e-learning if it was available.

“There are two Flexible Learning Toolboxes which assist the delivery of nationally accredited training packages for the manufacturing sector: Optimake (Certificate lll in Process Manufacturing); and Sustainable Manufacturing (various qualifications).”

PaQS (People and Quality Solutions) has launched an online safety course that is designed to fit into safety induction programs for trainees and apprentices.

The company’s managing director, Carl Reams, points out that young people are almost one and a half times more likely to be injured at work than the average worker, and the statistics show >>

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+61 2 8850 3333 Manufacturers’ Monthly SEPTEMBER 2011 23

InsiderSERIES

Exiting with grace – a seller’s guide

BY LEIGH RILEY

A WHOPPING 41% of manufacturing businesses are expected to change hands in the next five years as most owners near retirement age – the largest shift of ownership in Australia’s history.

As a result, you will find yourself in a very competitive environment when selling your business. The financial capacity of would-be buyers is hindered by strict parameters imposed by financial institutions on borrowers since the Global Financial Crisis (GFC). Most financiers are insisting on a formal succession strategy not only for you as a business owner, but for the potential purchaser, which means there is a lot more criteria required when selling your business to release you to financial freedom.

Whether you are considering your handover to be to staff, family or strangers, preparation will be the key.

The government has allocated a significant grant to assist qualifying manufacturing companies with implementation costs. You can access this grant via business succession consultancy firm, The Exit Experts.

I have developed the following ‘PROFITS Keys’ system to help you prepare for your exit.

1. Proceed with the end in mind by thinking like a buyer.

that more than 70% of these cases occur within the first year.

“The new competency-based Advanced Safety Awareness (ASA) course targets human error by developing and enhancing individual safety thinking and responsibility,” Reams said.

“This course is there to support skills training, and is suitable for application in a wide range of enterprises, regardless of size.

“In fact, the smaller the employer, the more exposed they are to not following procedures.”

Significant benefits SPCArdmona (SPCA), which processes fruit and vegetable 24 SEPTEMBER 2011 Manufacturers’ Monthly

With more business-owners reaching retirement age, outgoing managers need a formal succession strategy to make sure their company is attractive to buyers.

They’re looking for a quality management team, not reliant on owners, in a well-honed organisation.

They want loyal, diversified customers, acceptable plant conditions, and equipment and protected intellectual property.

2. Reduce tax by being structured to capitalise on available capital gains tax exemptions.

This will allow you to keep more of the sale proceeds.

3. Organise your business to be free from debt and guarantee commitments. These do not retire or die when you leave your

business. Commitments you’ve made can linger on for many years to come, so strategise to release yourself from these.

4. Flag potential funding sources. Willing buyers will not always have access to capital and borrowings to fund the entire value of your business ,which will impact how freely you may leave your business.

5. Identify ideal buyers and implement the selling process.

Most business-owners think they will hang out a ‘for sale’ sign and the most ideal buyer at the desired price will appear. This is

products in the Victorian regional towns of Shepparton and Kyabram, has over 500 permanent employees.

In 2009, the company offered a training program to 420 permanent production and distribution employees.

According to SPCA’s employee engagement and training manager, Nick Bartholomew, these workers were skilled in how to do their jobs but lacking in the knowledge and theory underpinning their competency.

Basically, they knew ‘how’, but didn’t know ‘why’,” he said.

“An initial step was to develop a strategy linking training with employee classifications and pay

rates, and then a training plan and training bonus was written into a new Enterprise Bargaining Agreement negotiated with union support. Advice from Skills Victoria was obtained in relation to eligibility and the training process, and the National Food Institute was selected as the registered training organisation to provide the training.

“149 of the original 162 employees that commenced the Certificate of Food Processing or Transport and Logistics training program are continuing on in 2011 as they see the benefits for the business and themselves.

“The Standard Operating

less likely, especially as many competing businesses are about to change hands.

Discretion may be required to retain valuable customers, staff and suppliers to maintain your business valuation. Think outside the square.

6. Take control of your business sale price. You won’t always have the privilege of choosing when you will leave your business (51% leave due to unplanned circumstances such as dispute, disability or death).

Don’t wait until you’re in a situation or just before you wish to sell to consider your options.

Take control by boosting the value, finding a suitable candidate to succeed you, and enter into an agreement to lock in your business sale price.

7. Seek guidance from a team of qualified specialists. The worst thing you can do is rest on your laurels without seeking professional help. Avoid specialists working in silos, because the outcome may be different from the water-tight result you’re chasing.

Choose industry leaders who are working collaboratively for your greater good to ensure you receive the best possible outcome when you sell your firm.

[Leigh Riley is founding owner of The Exit Experts and author of Your Business Succession.]

The Exit Experts 1300 499 225, support@ybsprofits.com

Procedures that were formally written during the training programs means that knowledge from the heads of SPCA’s mature workforce has been captured in written documents.

“Other benefits include improved communication between workers and a decrease in the lost time injury frequency rate from 21 to 13.

“The program has also contributed to a 50% reduction in manufacturing variances.”

AFLF 07 3307 4703, www.flexiblelearning.net.au Ai Group 03 9867 0159, www.aigroup.com.au MSA 02 9955 5500, www.mskills.com.au PaQS 02 4949 4500, www.paqs.com.au SPCA 03 9861 8938, www.spcardmona.com.au manmonthly.com.au

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MadeIN AUSTRALIA When the shoe fits Globalisation, taxes, the high dollar and consumer habits have all been blamed for Australia’s contracting TCF sector. But are we pointing the finger in the right direction? Sarah Falson investigates.

I

N 1975, 350,000 people were employed in the textiles, clothing and footwear (TCF) manufacturing industry in Australia. Today, 45,000 workers staff the sector, with Manufacturing Skills Australia (MSA) forecasting a further 3.4% drop by 2016.

It is no secret that Australia’s manufacturing industry is shrinking, across the board.

According to MSA, it employed over 1.7 million people in 2008; today, just over 980,000 remain.

Australia’s dollar, consumer demand and government taxes are all blamed for the ‘crisis’.

For the TCF industry though, Asian competition is the most serious offender.

For over ten years, our TCF sector has struggled to match the manufacturing model adopted by our neighbour countries. Cheap labour, materials cost-cutting and high production volumes have resulted in bargain-priced goods that are too attractive for consumers to ignore. Last year, we imported $10.15 million worth of TCF goods while only $1.87 million was exported, reported the Department of Innovation, Industry, Science and Research.

26 SEPTEMBER 2011 Manufacturers’ Monthly

In May this year, retail giant Myer announced it would double its outsourcing to Asia to $200 million a year by 2016. In June, 24 workers were made redundant at Fairy Meadow's Poppets Schoolwear as it entered administration, blaming increased import competition. In July, Australia’s industry lost $7.8 million to US competitors when the Defence Materiel Organisation decided to outsource its camouflage combat uniform. In the same month, Victoria Police dumped local TCF manufacturer Bruck, handing a $1 million shirts contract to China.

For those left in the Australian TCF sector, it has become clear that producing commodity goods is no longer feasible; specialised, value-added products, differentiated by design or innovation, are the way of the future.

Keeping it in the family For Philip Endersbee – the executive chairman of Melbournebased thermal underwear manufacturer, Wilderness Wear Aust – Australian TCF companies are adopting a new business model. “[TCF manufacturing’s] future I would say is more around a

Woolerina’s Warwick Rolfe believes suppliers need to take more responsibility for their destinies. The merino wool company is tapping into the export market to ensure revenue during Australia’s ‘off season’.

Scandinavian model – niche product, better quality and shorter runs. Bulk items like ‘cotton sox and jox’ will be out of the east [in the future],” he told Manufacturers’ Monthly.

Lazo Stanar, the director of Victorian womenswear company, Apple Apparel, agrees: “Find niche, embrace it and develop from there. Leave short-run production on-shore and source

long-run production off-shore.”

Combining local and export business is important, with quality and expertise valued around the world. Wilderness Wear’s Endersbee says his firm success by following the mantra: “no debt; large number of small customers spread around Australia; be a niche specialist; export; don’t make house brands; stay away from the chains.”

manmonthly.com.au

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Composite (non metal) safety toe cap approved to Australian Standards AS/NZS 2210.3 - Latex toe cap lining Composite penetration resistant midsole Comfort PU footbed insole Breathable moisture absorbing linings Premium leather uppers Padded collar Padded tongue Cushioned phylon midsole Durable heat, abrasion, oil and acid resistant rubber outsole External TPU torsion stabilizing shank Anti-static

Bickz 907 Black Zip Sided Boot / Bickz 901 Tan Hiker / Bickz 903 Wheat Hiker / Bickz 902 Black Hiker Bickz 905 Black Jogger / Bickz 904 Black Shoe / Bickz 909 Black Elastic Sided Boot

BATA Shoe Company of Australia 1158 Nepean Hwy, Mornington Victoria 3931 Australia Toll Free 1800 644 297 www.bata-australia.com.au

Made IN AUSTRALIA But is it really as simple as Endersbee claims? If so, why isn’t the TCF sector growing?

Footing the blame Current taxes and regulations may be tough, but the principle of wool fibres manufacturer Woolerina, Warwick Rolfe, believes suppliers need to take responsibility for their destinies.

“I don’t think that we should ever blame the government. I am a great believer in doing things for myself and I am prepared to live with the consequences,” he said.

“Businesses need to continue to look outside the square for better and more innovative ways to do things. If the attitude of the business is ‘right’ then I am sure it will succeed.”

Wilderness Wear Aust’s Endersbee agrees, claiming manufacturers make their own beds.

“We are all to blame. We have all lived off the sheep’s back for far too long and are now paying for our own stupidity,” he said.

“Those that have gone have not been able to predict the changes in the market, just like

28 SEPTEMBER 2011 Manufacturers’ Monthly

retailers who have resisted online selling at their peril. Yes, it is a shame, but the market is changing rapidly in all industries and one has to ‘be quick on your feet or you will get rolled’.

“Nothing is forever and there is no free lunch. Government policy sets the direction and defines the boundaries but they are not accountable from a business perspective and businesses have to learn to take account of government thinking and policy but make decisions irrespective of government if they want to survive in the long-term.”

The Minister for Innovation, Industry, Science and Research, Senator Kim Carr, says there is an array of grants designed to help locals meet the expectations arising from new regulations – including the carbon tax.

“Like all our manufacturing industries, TCF manufacturers should take-up opportunities that help them transform their business so they can thrive in a low-carbon and two-speed economy,” said Senator Carr.

“TCF manufacturers must be innovative and invest in their

business to increase international competitiveness.

“The $406 million TCF innovation package demonstrates the government's commitment to TCF manufacturing.”

For some companies however, relying on government hand-outs isn’t the way forward. Wilderness Wear Aust’s Endersbee says some of the offerings miss the mark.

“Government funding – we do not chase it, those that do end up being dependant on it,” Endersbee said.

“The government had a very good program called SIP (Strategic Investment Program) which is now becoming the BIC (Building Industry Capacity). The former was giving assistance with expenditure on capital funding whereas the latter does not include capital assistance.

“I do prefer the former as it encourages one to invest and be globally competitive. The new program will not be as effective.

I do not give a continental about helping development work here if the bulk is to be made offshore, and I am sure most taxpayers feel the same.”

Put the right foot forward Taking steps to educate consumers about country of origin is crucial to many TCF business models today.

The Australian Made, Australian Grown (AMAG) campaign rallies government for fair labelling laws, and educates buyers about the benefits of choosing locally-made goods.

“Woolerina has found that consumers are becoming increasingly aware of the country of manufacture and often remark, ‘they cant believe it is made in Australia’. There seems to be a level of patriotism creeping into the purchase of goods,” said Woolerina’s Rolfe, who uses the AMAG logo on his products.

For Endersbee, the issue runs deeper.

“Consumer awareness heightens when your neighbour loses his job. When you lose your own job or a close member in your family does then you start to get angry. There is nothing like 10% unemployment to heighten awareness,” he said.

Department of Innovation www.innovation.gov.au

manmonthly.com.au

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Incremental encoder AUTOMATED Control Engineering Group (A.C.E.) is supplying a new incremental encoder, called the Hengstler RI80-E, designed for OEM manufacturing applications.

According to A.C.E., the central element of the RI80-E is the latest Hengstler OptoAsic technology, which delivers EMC immunity.

The RI80-E has a voltage range of 5 … 30V, and protection class of IP50 or IP64. It features a 30-45mm hollow shaft and unbreakable disc, and provides integrated monitoring of pollution, disk damage, and LED lifetime and temperature.

The encoder features a 30-45mm hollow shaft.

The incremental encoder is suited for applications including geared elevators, asynchronous motors and indus-

trial machinery, the company says.

Automated Control Engineering 02 4954 5004, www.aceg.com.au

Flexible, colourcoded squeegees PALL Mall Manufacturing has introduced the Unger SmartFit Squeegees, offering universal power sockets, easy water flush and flexible colour-coding.

The universal power socket design allows the squeegees to lock onto a range of handles; unlike set size sockets, these sockets adjust to take any size or shape of standard handle.

In addition, the open socket design allows for fast rinsing and flushing of any dirt that has accumulated on the socket, the company says.

Pall Mall Manufacturing 02 9584 8644, www.pallmall.com.au

Complete machine engineering software package SCHNEIDER Electric’s new MachineStruxure automation system is designed to allow OEMs to engineer an entire machine from one software package.

30 SEPTEMBER 2011 Manufacturers’ Monthly

MachineStruxure is based on flexible hardware platforms and a single software suite, SoMachine, which is said to simplify machine programming and commissioning by building all the

required elements into one software environment. The system is suitable for crushing, conveying, hoisting, standby power generation and heating, and air conditioning applications.

MachineStruxure is part of the EcoStruxure energy management architecture portfolio.

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

manmonthly.com.au

Small application controllers

Provides coordinated multi-axis movements for manufacturing machines.

Expandable DC motherboard MAXON motor Australia has released a new, three-axis position control system, modelled on the company’s EPOS 2 36/2 digital position control units, suitable for brushless and brushed DC motors fitted with an incremental encoder.

Based on a motherboard and plugin module system, this DC motor control unit is said to be compact and expandable.

Attached to the unit is a downloadable specification sheet that shows

accessories such as IO modules, RS232 and USB modules. The control unit also features interpolated position of the three-axis, which can synchronously run paths specified by convergent points, maxon says. This feature reportly allows coordinated multi-axis movements for robotics, pick-andplace and manufacturing machines, as well as dual loop feedback for position and speed control of all three-axis. maxon motor 02 9476 4777, www.maxonmotor.com.au

A NEW Allen-Bradley Micro800 family of controllers and matching Connected Components Workbench software are customisable solutions for small controller applications.

Designed for machine-builders and end-users, the controllers are reportedly easy-to-install and maintain, offering the functionality of a micro-PLC, for the price of a smart relay.

Two controllers are available – the Micro810 and Micro830 – suited to standalone machine applications with fewer than 48 analogue or digital I/O, including communications and expanded memory.

The controllers provide flexible communication options.

The units also offer removable terminal blocks (most models) and simplified communication options.

Rockwell Automation 03 9896 0300, www.rockwellautomation.com.au

Hose reels for corrosive environments A NEW range of Aussie Hydrotek stainless steel, high-pressure hose reels offer resistance to steam and corrosion. The reels can be used with pressure cleaners with ratings as high as 5,000 psi, and steam cleaners with temperature ratings to 130°C.

The swivels are stainless steel and designed for demanding environments.

Reels are available for up to 75metre lengths of 3/8-inch wire braid high pressure hose.

Australian Pump Industries 02 9894 4144, www.aussiepumps.com.au

THIS MONTH’S PRODUCT FEATURE IS THE VACUUM LIFTER JUMBO FLEX 35

The vacuum lifter that can lift and move a huge range of products weighing up to 35kg and can handle boxes, bags, sacks, rolls of film and many other items as well.

Lifting, lowering and releasing of the load are controlled with a single trigger action on the operator control handle, this handle is also suited for both left and right handed operation

Millsom’s also have a great range of vacuum lifters capable of lifting up to 2000kg and jib cranes, bridge cranes and low friction track systems to suit most applications.

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manmonthly.com.au

FREECALL 1800 99 22 11

www.millsom.com.au email - sales@millsom.com.au Manufacturers’ Monthly SEPTEMBER 2011 31

What’sNEW Maintenance-free terminal blocks

ERP supports growth

WAGO’s new TopJob S Cage Clamps range provides multi-purpose, railmounted quadruple deck terminal blocks for connecting electric devices from motors to sensors.

The terminal blocks allow a set of terminals to be used to supply power to a number of motors or three-wire sensors, simultaneously saving space.

The Cage Clamps are reportedly easy to install, and no not require annual maintenance.

The units are being marketed as a cost-effective solution for manufacturers requiring hassle-free connection.

SOFTWARE Solutions company eCommerce Industries Inc (ECi) has released version 8.0 of its ECi M1 enterprise resource planning (ERP) system, which is said to provide total integration and automation services, from quoting through to invoicing.

ECi M1 is designed for discrete manufacturers that are planning growth, helping them improve their processes to save time, resources and money.

Version 8.0 offers more intuitive dashboards than its predecessor, along with integrated business intelli-

The terminal blocks are compact, saving valuable factory space.

NHP Electrical Engineering 03 9429 2999, www.nhp.com.au

gence tools that are said to give users more insight into internal performance and customer buying habits, says ECi. The ERP system offers Google Maps, to allow users to see their sales distribution by location.

It also incorporates a new Design Studio wizard, which reportedly makes it easier to design and deliver customised products in response to demand.

Improved security and administration functionality are also offered, says ECi. ECi Software Solutions 03 8544 1300, www.ecisolutions.com

The printer can jet two materials at the same time, such as those required to make this stapler.

Multi-material 3D printer THE Objet260 Connex 3D printer is a compact, multi-material printer capable of jetting two materials at the same time to produce advanced composite materials. The printer is capable of processing 14 individual materials in a single print run.

The Connex printer is suitable for 3D printing applications including replicas of assembled goods, along with

consumer products. The system is designed for engineers who require a product prototype with a tactile feel, such as a mobile phone. In this instance, the printer develops the prototype in a single print job using a hard material for the shell and a flexible material for the keypad.

The printer can work with more than sixty materials, among them the newly-

released ABS-like and clear transparent offerings.

The layers created by the Objet260 Connex are 16-micron. The system’s tray size is 260x260x200mm, and it uses sealed material cartridges that are

reportedly easy to insert and remove.

3D models are cured during the build process and can be handled immediately after printing.

XYZ Innovation 03 9815 6016, www.xyzinnovation.com.au

SET TING THE WITH STANDARDS AFE INNOVATIVE S TIONS STORAGE SOLU EF CTIVE COMPLIANCE EFFECTIVE EFFECT COMPLIA ANCE FOR F THE MANUFACTURING INDUST INDUSTRY TRY

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Relocatable bulk stores Safety cabinets Gas cylinder stores Lube stations Bunding Safety showers Custom design to suit your situation

DESIGNED AND MANUFACTURED IN AUSTRALIA

protecting the

1300 134 223 1300 307 895 sales@storemasta.com.au www.storemasta.com.au 32 SEPTEMBER 2011 Manufacturers’ Monthly

manmonthly.com.au

What’sNEW - Dust & Fume Control The system is suitable for standard open-top 205-litre drums.

Industrial footwear KING’S new range of safety and industrial boots is available from Oliver Footwear in five styles - two safety boots and three safety gumboots.

The 15-480 Elastic Sided Boot and the 15-434 Lace Up Boot both feature black print leather uppers, teamed with a wide-profile, Type 1 protective toecap that reportedly exceeds AS/NZS 2210.3 Type 1 requirements for clearance after impact.

The gumboots, available in black (Style 10-100) and white (Style 10-110), along with the 10-105 Black style, all offer waterproof protection and PVC/nitrile construction.

Rugged, dry vacuum

Oliver Footwear 03 5331 2688, www.oliver.com.au

The new work boot styles are also available in half-size increments.

Reduce downtime with industrial maintenance toolbox LOCTITE’S Maintenance, Repair and Overhaul (MRO) Kit from Henkel Australia provides maintenance personnel with the tools to help reduce plant down-time and drive down maintenance costs.

Packaged in an easy-to-carry, rugged and lockable toolbox, the MRO kit includes a range of Loctite products

suitable for maintenance and repair in a diverse list of applications.

The kit includes: 569 Hydraulic Sealant Medium Strength 50ml; Freeze & Release 310g; 243 Nut Lock Medium Strength 50ml; Metal Magic Repair 57g; 262 Stud Lock High Strength 50ml; 268 Threadlocker High Strength 19g ; 680 Retaining Compound Very

High Strength 50ml; 401 Instant Adhesive 25ml; 609 Retaining Compound Medium / High Strength 50ml; 438 Instant Adhesive 25ml; 567 Master Pipe Sealant 50ml; Anti Seize Stick 20g; 7471 Primer 125g; and 515 Master Gasket 50ml.

Loctite (Henkel Australia) 03 9724 6444, www.loctite.com.au

Clear PVC ducting is lightweight, yet strong EXIMO has introduced ClearFlex, a lightweight and flexible PVC ducting with a high bend radius which can be used for the suction of air, fumes and light dusts.

Made from a spring steel helix to maintain shape under pressure, ClearFlex is suitable for food, chemical, pharmaceutical, electronics and other manufacturing applications.

The ducting comes in 10-metre rolls, and is available with bend radii from 16mm up to 350mm, with wire thickness from 1mm to 2mm.

Eximo 1300 138 038, www.eximo.com.au

EXAIR’s new Deluxe Heavy Duty Dry Vac system is a rugged, industrial dry vacuum cleaner that has been engineered to vacuum high volumes of dry materials quickly.

The vacuum is compatible with a standard, open-top 205-litre drum, and can be moved from drum to drum to keep materials separate for recycling.

The Dry Vac system is powered by compressed air, and is reportedly extremely quiet at 82dBA. The system comes complete with a 3-metre, staticresistant hose, a 0.1-micron filter bag and a 6-metre compressed air hose.

The vacuum’s wear-resistant design reportedly makes it suitable for cleaning abrasive materials including steel shot, garnet, metal chips and sand.

The system can also be used for general-purpose applications.

Compressed Air Australia 1300 787 688, caa.exair.com

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Carpet Cleaners

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Toll Free: 1300 KERRICK 1300 5 3 7 7 4 2 Manufacturers’ Monthly SEPTEMBER 2011 33

What’sNEW - Dust & Fume Control The unit features a 110-volt burner for continuous hot water cleaning at up to 130ºC.

Powerful, diesel-driven steam cleaner AUSTRALIAN Pump Industries’ new Aussie Hydrotek steam cleaner is a diesel-driven, 5,000psi solution designed for maintaining industrial areas and equipment.

The Hydrotek steam cleaner reportedly ‘melts away’ grease and grime, reducing cleaning time and helping facilitate efficient and accurate maintenance checks.

Designed for operation in the harshest environments, the machine has full stainless steel construction, including a protective cover over the coil. The unit can deliver 8,500psi steam when used with the Aussie Turbomaster turbo lance, the company claims.

Powered by a Kubota 20HP watercooled diesel engine, the unit incorporates an emergency shut-off system as standard. It also features a watertight electrical box for dirty, damp environments.

The unit’s 110-volt burner is powered by a 2.9kW generator that provides additional power outlets for running lights or accessories.

Australian Pump Industries claims the Hydrotek will revolutionise high pressure cleaning and will largely eliminate the need for expensive cleaning of chemicals and compounds.

Australian Pump Industries 02 8865 3500, www.aussiepumps.com.au

Filter packs replace baghouse technology for dust collection DONALDSON Australasia says its new filter ‘packs’ can replace traditional baghouse technology for dust collection in a variety of industries including general industrial, cement, plastic and wood.

According to Donaldson, filter packs in the PowerCore CP Series have a

much smaller footprint than filter bag systems, and allow maintenance to be performed at a fraction of the time spent with traditional bag systems.

The comparatively smaller, lightweight PowerCore CP Series filter packs feature built-in handles for easier and faster change-outs.

They use Donaldson’s patented UltraWeb nanofiber surface loading technology offering a corrugated, fluted media configuration to allow more media in a small volume. According to Donaldson, this provides high particulate efficiency and allows for easy maintenance.

The PowerCore CP filter packs are available in standard and antistatic versions, both with the UltraWeb nanofiber media.

The units are said to be ideal for applications where electrostatic charges can be a hazard.

Donaldson 02 4350 2034, www.donaldson.com

Increase productivity in your manufacturing process by pre-coating all your threaded fasteners.

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The patented electronic control board allows an easy to use & continuous monitoring of the vacuum efficiency. It also allows functional control of options such as solid or liquid cut off.

The S2 & S3 family are lightweight, yet sturdy which allows easy manoeuvrability in crowded workshop or manufacturing sites. They also come in L, M & H certified versions.

www.nilfisk.com.au cfm@nilfisk.com.au 1300 556 710

34 SEPTEMBER 2011 Manufacturers’ Monthly

Ask Belmatic to provide the ideal solution for your needs.

Belmatic Industries Pty Ltd 12 Kylta Rd, Heidelberg West VIC 3081 P: 03 9459 8097 W: www.belmatic.com.au

APPLIED FASTENER COATINGS • SPECIALISED PRECISION ENGINEERING manmonthly.com.au

Automation&ROBOTICS

Eliminating coding and barcoding errors can help boost product line efficiency and reduce line wastage.

Controlling real-time efficiency Choosing the right process technology can help food and beverage manufacturers reduce on-shelf product errors and achieve real-time efficiency. Annie Dang writes.

T

ECHNOLOGY designed to better control the end-ofthe-line manufacturing processes, including coding and packaging, can provide food and beverage manufacturers with a cost-efficient solution that not only reduces production costs but also product liability.

"In food manufacturing, coding and labelling errors could cost manufacturers dearly because they often require reworking," Matthews’ manger for identification systems, Mark Dingley, told Manufacturers' Monthly.

"Reworking could involve going back and repackaging the defective production or completely reproducing that product.

Either way, both processes would require extra time spent by workers to fix the defect and also extra material to reproduce that product."

However, eliminating coding and labelling errors is about more than just production efficiency and waste management; it is about cost management.

"Manufacturers are now checking for coding and barcoding errors all the way along the production process, from primary through to cartoning or palletisation," Dingley explains. manmonthly.com.au

"The idea is to control wastage costs by checking the product in stages as it comes down the line, rather than checking all at once as it comes off the production line. This allows manufacturers to correct an error without stopping an entire plant’s production, and reduces potential costs which could arise as a result of coding or packaging error."

One technology helping local food and beverage manufacturers better monitor and control the production quality to eliminate product recall, rework, lost production and material wastage is iDSnet – a package code management system designed to deliver a true product-traceability solution throughout manufacturing businesses, thus streamlining operations.

Using iDSnet technology, in addition to eliminating coding and labelling errors, manufacturers can better control the production process by assessing performance speeds, optimal efficiency and overall efficiency to see if they are meeting their efficiency targets, says Dingley.

"The technology captures information from various points along the production line – such as scanners, photo eyes, vision

inspection systems, packaging equipment and so on – showing the true performance of those production lines in real time.

Manufacturers can look at the data to see how effective their production line is, to determine how to achieve overall equipment effective (OEE) standards," he says.

"Having access to real-time data gives manufacturers the ability to make decisions based on how their production line is running in actual time or over a certain period of time, and informs them of any issues, such as stoppages, as they may arise down the production line."

Omron Electronics product specialist for machine vision, Panfilo Tarulli, says checking for product defects as goods come down the line is definitely the more cost-efficient method, rather than waiting to check the completed products at the end.

“Most food lines operate at very high speeds. Within an hour, if a defect is not recognised, the manufacturers can lose thousands of defective products. At this stage, the product can be reworked, but at a heavy cost to the manufacturer,” Tarulli told Manufacturers’ Monthly.

“But once labels are applied to the defective product, the cost of reworking becomes too expensive. The manufacturer is better off disposing of the defective product and reproducing a new batch. Reproduction however does come at a cost: a new roster for the reproduction needs to be scheduled and more raw materials need to be used, which adds to the cost of production.”

A technology that is helping food and beverage manufactures better manage their production costs and reduce labelling errors is machine vision – an imagingbased technology that provides continuous inspection of products on a production line.

“You can install a vision system after each process or after several processes – it really depends on where the waste is having the biggest impact on your yield rates,” says Tarulli.

“If for example you lose in a year $70,000 dollars in defective products, then a $40,000 vision >>

Manufacturers’ Monthly SEPTEMBER 2011 35

Automation &ROBOTICS Monitoring and control module

Motoring robots ABB has released a new motor and gear unit package that enables robot integrators to create custom solutions for workpiece positioners, robot carriers, track motions, servo guns and indexing conveyers.

The motor units come in four sizes, including a new extralarge motor (MU400) designed for high-power applications such as turntables. The gear units are offered in the same seven versions currently built into ABB’s positioners, including MTD (for positioning) and MID (for interchange) units.

Both units work with other ABB equipment.

ABB 1300 782 527, www.abbaustralia.com.au

ICP Electronics Australia has released the t(P)ET-P2R2/tETP2R2 from ICP Das, an IP-based Tiny ethernet I/O monitoring and control module that can be remotely controlled through a 10/100M ethernet network by using Modbus TCP/UDP. The tET-P2R2 and tPET-P2R2 contain two channels of photoisolated digital inputs and two

channels of form-A power relay outputs. The module can be used to create a DI to DO pair-connection through the ethernet.

Once configuration is completed, the module polls the status of the local DI channels and then writes to a remote DO device continuously in the background using the Modbus/TCP protocol.

It features a 32-bit MCU to

enable handling of network traffic and has a built-in web server that provides an intuitive web management interface allowing users to modify the settings.

Designed for ultra-low power consumption, the module also accepts power input from a terminal block if no PoE is present.

continued from p.35

tion process, but to maximise their skills in other areas of production. This could mean workers spend their time monitoring the line and ensuring that all processes and systems are in place and functioning, rather than checking products.

Though such technology provides opportunities for manufacturers to achieve higher returns in the food and beverage industry, for workers on the factory floor it provides a source for acquiring new skills.

"Workers on the floor can monitor and access the data through

these systems, via scoreboards, which inform them in real-time of how the line is running, whether there are any errors and how efficiently it is running," says Dingley from Matthews.

"Knowing how to read and interpret such data not only helps to build worker confidence, it empowers them to take greater control over their work.

Overall, it lifts their skills level and improves efficiency."

system fully installed and commissioned has just saved you $30,000 in your first year alone.”

Tarulli says Omron’s FZ3 vision system sets a reference point, which is used to compare products on your line. The measurements received fill levels, expiry dates, codes and label information are analysed, and adjustments can be made to set your optimum efficiency level.

Vision systems are also used in areas where human intervention creates problems. The idea is not to replace workers in the produc-

ICP Electronics Australia 02 9457 6011, www.icp-australia.com.au

Omron Electronics 1300 766 766, www.omron.com.au Matthews 1800 333 074, www.matthews.com.au

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manmonthly.com.au

LOGISTICS & MATERIALS HANDLING

Wednesday 14 September 2011

LaserTECHNOLOGIES Fibre or CO2, which laser machine is best for your application?

claims are a little ambitious when they compare them to lasers and certain profiles.

“These high-definition plasma machines are excellent, but try and cut a finely detailed saw blade with a plasma; you just can’t do it,” McHugh said.

“Also as the plasma nozzles and tips wear, the angle of the cut changes, dross increases and over the arc hours quality falls off.

“While with a laser, I can cut a part today then cut the same part one year later, and it will be exactly the same.”

Plus, he says the latest technology advances have made laser cutters even more suitable for lights-out-manufacturing.

“To date, the problem has

Choosing the right laser cutter Laser cutting metal has been around for decades, but there is still some confusion about which laser is suitable for which application. Alan Johnson investigates.

W

HILE metal can be successfully cut using plasma or oxy cutting machines, when it comes to accuracy and consistency it has to be a laser cutting machine, but which one – fibre or CO2?

However, David McHugh, MD of LMC Lasers, says companies shouldn’t compare laser, oxy or plasma as they all have a place in the metalworking world.

“If you want to measure it with a tape measure you cut it with a

plasma or oxy machine, if you want to measure it with a vernier you cut it with a laser.

“For example, if you were cutting 16-20mm steel plate for a lamp post, which is going to be buried in concrete, a standard oxy profile machine, with plus or minus 0.5mm accuracy, will be ideal,” McHugh told Manufacturers’ Monthly.

Though he admits the latest plasmas have improved, he says some of the manufacturers’

been the limited range and types of materials that can be cut because the machines could only change focal length lenses and nozzles manually,” he says.

“They might be able to cut 2mm, 3mm and 4mm mild or similar, but nothing else. You can change so many parameters of the machine automatically, but not enough to go from 1mm mild to 10mm stainless.

“But you can now, for example we have just sold a machine to a

PLASMA BEVEL CUTTING

company here in Melbourne with the full lights out automatic load/unload, automatic nozzle alignment, nozzle changer, and head changer. That means he will be able to go from 1mm mild to 10mm stainless with no human intervention.

“We call the lights out automation Bytrans (a material storage load/unload system) and Bysort (removes the cut parts from the skeleton). Both are available on a number of our machines.”

He predicts these types of machines will get more popular as manufacturers recognise the financial benefits of lights-outmanufacturing and full scale automation.

“Now you have the ability to go from 1mm mild steel to 10mm stainless steel, for example, without human intervention. These types of machines are designed to run 24 hours a day,” he says.

“We also now have 6kw laser machines which can cut 25mm thick steel plate as a daily function.”

But for thinner materials, 3mm and under, he says a fibre, highpressure nitrogen cutting machine might be appropriate.

“They are good on stainless steel, aluminium, copper and brass and all those materials that are highly reflective to the 10.6 micron CO2 wave length. In fact they will cut some of those materials faster than a 6kW machine will,” he says.

“The fibre machines we sell will cut up to 12mm mild steel however the problem with them >>

100%

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Laser TECHNOLOGIES

Your solution focussed partner for sensors and controls for automation

is it’s such a small spot size, with very high energy concentration and very narrow kerf, making it more difficult to cut with oxygen as the assist cutting gas. But it is wonderful for high pressure nitrogen cutting of stainless and aluminium.

“We recently sold a fibre laser cutting machine, a wonderful piece of machinery, with very efficient with low power consumption.

“Only 2kW, but the fineness of the focal point, something like 10x smaller than a CO2 spot size, makes the energy concentration excellent.”

Operating differences

1300 365 088 sales.au@ifm.com www.ifm.com

40 SEPTEMBER 2011 Manufacturers’ Monthly

Dr Fraser Dear, product line manager with UK-based SPI Lasers, agrees that single mode fibre lasers have very small spot sizes, but says in many applications this is a positive feature that enables the application through the very high power density achievable or the resolution of the process.

“There are however many ways to achieve a larger spot size with a fibre laser if needed,” Dr Dear told Manufacturers’ Monthly.

“Many fibre laser manufacturers will either supply or recommend optics components such as beam expanding and reducing telescopes which when combined with delivery optics can achieve a range of spot size configurations.

“In addition to this, multi-moded fibre delivery systems are available which increase the spot size significantly and allow many of the processing parameters of existing systems to be replicated.

“In some cases such as precision welding and marking, beam scanning solutions can be implemented where the beam is scanned across the surface of a part which can replicate a larger spot than achievable with an unmodified beam.”

When it comes to operating costs, Dr Dear says the cost of fibre lasers has reduced to the point where the differences with CO2 technology are now increasingly marginal.

“And when the running costs of such systems are taken into account the differences can be significant,” he says.

“In order to generate laser output a CO2 source requires a number of high purity gas supplies, in addition to regular recharging of the laser cavity. In addition to this a high level of cooling is required to keep the internal chamber and optics cool.

“The optics themselves require maintenance and alignment and are not insignificant consumables from a financial perspective.

“Finally the energy efficiency of conversion from electrical input to optical output is in the region of 5–10%. When considering the higher power CO2 systems, this low conversion efficiency and subsequent high cooling requirements can lead to high energy

Technology advances have made laser cutters suitable for lights-out-manufacturing.

costs per laser source. This may seem very low but laser systems are available with efficiencies in single digits simply due to complexity in generation of laser light and losses with the optical system.”

As well, he says fibre laser sources essentially have no periodic maintenance consumable costs.

“The optical source is a monolithic structure in that there is no free space propagation of the light. This means that there is no alignment or maintenance of any optics as these are written into the optical fibre using fibre bragg gratings,” he says.

“However, clearly in respect to the particular process being conducted, consumables may be required such as shield/processing gas.”

Though Dr Dear is a strong advocate for fibre lasers, he recognises they are not ‘the’ laser for all applications.

“There will always be applications for lasers operating within specific areas of the industry where a process is wavelength dependent or requires pulse parameters currently unavailable with fibre laser systems,” he says.

“The advent of the fibre laser was revolutionary for the laser market as from a user perspective it offers significant benefits over a great number of the existing laser technologies.

“There is no question that the introduction of the fibre laser was disruptive to a number of the laser industries such as Nd:YAG and CO2, however it has taken time for the legacy systems to either reach their natural life and/or the users demand higher performances from their laser solutions.”

Looking into his crystal ball, Dr Dear says short pulse and ultra short (fs) pulse lasers are increasingly being used in early stage process development but they still suffer from high capital cost and technology complexity.

“Longer wavelength fibre lasers, if they could be manufactured cost effectively, would address the eye safety concerns that remain one of the key differences between high power IR and NIR lasers,” Dr Dear said.

LMC Lasers 03 9555 5525, www.lmclaser.com.au SPI Lasers www.spilasers.com manmonthly.com.au

Automated laser cutting quotation system

BY ALAN JOHNSON

RATHER than having staff make educated guesses, Australian company ipLaser has developed an automated laser cutting quotation system that addresses problems caused by ‘traditional’ quoting methods.

Unlike quoting tools, ipLaser uses a CAD drawing as the source of information for the quote, with users no longer needed to rely on estimates of a part shape or time.

According to Peter Olle, technical director with ipLaser, the quotes are based on a set of rules and parameters which ensures a consistent quote.

“The quoting process has been automated to the point where significant savings in the time to produce a quote can be made,” he said.

“The user is simply required to provide a CAD drawing of the part, the minimum information to define a part, and the system takes care of the rest. The technology used by the ipLaser quoting engine not only ensures that the quotes are consistent, but they are also accurate.

“The algorithm that calculates the part processing time is modelled on a physical machine, rather than using linear distance. The system takes into account deceleration/acceleration required when cornering.

“This means that your quote for a complicated part (for example, a saw blade) is not the same as for a simple rectangle of the same distance. Material pricing is also accurate and competitive, with ipLaser calculating material prices based on an approximate true shape nest.”

Glen Gangemi, manager of Townsville Laser Cutting, one of the first users of ipLaser, said the software has decreased the company’s quoting time.

“Plus there are now fewer errors from quoting to production because it is an integrated process. It has helped in minimising our error rates and works well on simple and complimanmonthly.com.au

The system uses a CAD drawing as an information source, minimising estimates.

cated parts. In fact everything,” Gangemi told Manufacturers’ Monthly.

“The software is the best improvement we have made in a long time. Customers love the new service; their quotes are exactly the same every time.

“Plus it is 100% accurate. We have never given out quotes that we can’t make money on. It gives us the right price every time.”

As well, ipLaser comes equipped with the technology to provide users with a 24/7 store front where their customers may obtain quotes over the internet automatically, rather like booking an airplane ticket.

The system can also be used in-house by the supplier to generate a laser quote by utilising "drawings" as the source of the quote, rather than guess work.

“The service is delivered as a web site that we host on behalf of the laser cutting supplier rather than supplying the software outright,” Olle said.

“We integrate our technologies with the user’s existing web site to offer the user’s customers prompt quotations for the supply of laser cut services including the material component if required. Each of the member laser cutting suppliers is assigned a unique sub domain ensuring that data is kept secure, and isolated.

“The supplier controls the quoting system. They set up their quotation parameters including their feed tables, hourly rates, material costs, customer discounts and any other parameters and our system will utilise these parameters to calculate the customer's price.” ipCompute 0407 351 017, www.iplaser.com Manufacturers’ Monthly SEPTEMBER 2011 41

Metalworking& MACHINE TOOLS E

MO, the worldâ&#x20AC;&#x2122;s largest metalworking exhibition, will open its doors in Hannover later this month (19â&#x20AC;&#x201C;24 September) to showcase inventive new products and services from all over the world.

According to the organisers, VDW (The German Machine Tool Builders' Association), EMO Hannover 2011 will present an unequalled width and depth of products and services throughout all production areas, from the nucleus machine tool, to precision tools, to linking devices and industrial electronics.

The following â&#x20AC;&#x2DC;highlightsâ&#x20AC;&#x2122; are just a small selection of some of the new products EMO visitors will see in Germany.

ANCA: One of the few Australian companies at this yearâ&#x20AC;&#x2122;s EMO, ANCA will unveil its new TX Cell CNC grinding machine, said to be the first machine to embody the blanket grinding concept where one machine performs several operations from the blank to finished

ANCAâ&#x20AC;&#x2122;s new TX Cell CNC grinding machine will be one of the products waving the Australian flag at this yearâ&#x20AC;&#x2122;s EMO.

EMO Hannover highlights for 2011 Canâ&#x20AC;&#x2122;t get to Germany? Hereâ&#x20AC;&#x2122;s our pick of the top offerings at the show this year. By Alan Johnson.

tool, in one single set-up. The machine is said to fight profit squeeze on three vital fronts, namely flexibility, productivity and precision.

Mikron Tool: A flexible carbide micro drill will be the key focus on Mikron Toolâ&#x20AC;&#x2122;s stand.

CrazyDrill Flex, the latest member of the CrazyDrill family, is said to combine the flexibility of a HSS drill with the advantages of a solid carbide drill, namely long tool life and precision.

The concept is based on a new type of carbide alloy and an accurately-defined, innovative geometry. A flexible shank extension is said to afford elasticity, which permits process-sure drilling under difficult circumstances. This allows compensating for imprecise positioning as it occurs, for example, with multispindle or transfer machines.

Suitable for a range of different materials, the drillâ&#x20AC;&#x2122;s main applications are in the micro machining of precision parts such as in the watch and medical

Acra Machinery Pty Ltd

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ph. (03) 9794 6675 www.acra.com.au

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EUROPES NO.1 FABRICATION MACHINERY SUPPLIER AVAILABLE IN AUSTRALIA 42 SEPTEMBER 2011 Manufacturersâ&#x20AC;&#x2122; Monthly

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industry, and for the machining of fuel injection components.

Boehlerit: Boehlerit claims it is the first company to deposit a new AlTiN carbide layer in serial production on carbide indexable inserts by means of a CVD process. This reportedly boosts efficiency, with the milling performance on cast materials increased by up to 200% and on steel materials by up to 100%.

According to the company, economically efficient ADI and GGV machining can also be expected from this new Teraspeed LCK10M coating. The new CVD layer is said to have an Al content of more than 90% and therefore a hardness of HV 3,500. The development reportedly ensures significantly improved thermal stability, oxidation resistance, and layer adhesion.

Schunk: Schunk will release the Tendo E Compact, a powerful hydraulic expansion tool-holder.

The tool-holders are said to safely transfer torques of up to 900Nm at a 20mm clamping

diameter and are suitable for volume cutting under dry clamping conditions.

The company says it has increased the performance of its new product by about 60% in comparison with conventional hydraulic expansion devices.

Global Retool Group: A new machining technology using liquid carbon dioxide as a coolant will be unveiled. The Friogenic coolant system is considered particularly advantageous for the machining of highly heat-resistant, high-alloy or abrasive materials and reportedly offers clear technological and economical benefits. These are specified as a significant increase in productivity due to higher machining speeds, a high-quality surface finish, extended tool life, and lower coolant cost.

ANCA 03 97518200, www.anca.com Mikron Tool, www.mikron.com Boehlerit, www.boehlerit.com Schunk, www.schunk.com Global Retool Group, www.global-retool-group.com

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Manufacturersâ&#x20AC;&#x2122; Monthly SEPTEMBER 2011 43

Metalworking &MACHINETOOLS Laser competition FARLEY Laserlab has released a range of plasma cutting machines said to be able to compete with laser cutters.

The TruEdge plasma machines can cut mild steel parts as thin as 2mm; they cost half the price of a laser machine and are also cheaper to run, the company says.

In the past, an experienced operator was reportedly the only means to achieve the satisfactory edge and hole quality from a plasma machine.

Now, according to the company, an operator with minimal to no plasma experience can consistently produce higher quality parts, than an experienced operator on a traditional plasma machine.

The TruEdge plasma machines make use of Hypertherm’s True Hole Technology said to increase hole clindicity by up to 50%.

Farley Laserlab 03 9931 9300, www.truedge.com.au

Plasma profile cutting machines ADVANCED Robotic Technology (ART) has introduced the new Smart XR plasma profile cutting machine, designed with a small footprint to suit small- to midsized shops.

The plasma cutter is said to offer reliable plasma technology at a low investment cost, yet offers top performance and a range of features.

Available in 1.6m- and 1.9mwide process areas, the machine is designed to work with most commonly-available sheet and plate sizes and thicknesses.

The large user-friendly touchscreen controller runs the latest version of ART’s ProfileShop software. On-screen displays give up-to-date information about settings, and plain-English messages warn of low gas pressure and other important parameters.

The controller features a comprehensive internal database which is optimised with settings for each material to make cutting a breeze, says ART. The plasma profile cutters are fully-

The machines are available in 1.6m and 1.9m process areas.

integrated with Hypertherm’s fourth generation PowerMax plasma torches.

According to the company, operators now can now easily cut metal that may have been hard to process in the past. Smart Sense technology automatically

adjusts gas pressure to the cutting mode and consumable selection.

In addition, PowerMax systems run on shop air; there's no need for bottled gases.

Advanced Robotic Technology, www.advancedrobotic.com

Manufacturing your components

SPECIALISTS IN • zinc die casting • machining • powder-coating • chrome plating • packaging & distribution 20 Enterprise Street Caloundra Qld 4551 AUSTRALIA Phone 07 5491 3566 Fax 07 5491 3107 Email emro@emro.com.au www.emro.com.au

44 SEPTEMBER 2011 Manufacturers’ Monthly

manmonthly.com.au

Additive manufacturing lowers titanium costs THOUGH Australia has the world's largest reserves of titanium ore, most of our titanium ore is shipped overseas and bought back after processing.

Australia could keep that up for 90 years at the current production rate, but John Barnes – newly-appointed leader of the CSIRO's Titanium Theme, Future Manufacturing Flagship – has a better idea.

If we converted just 1% of the nation's ore reserves each year to metal for high-value manufactured items, Barnes estimates they would achieve the same annual export earnings – for another 9,000 years.

The metal has a high strengthto-weight ratio (it is as strong as steel but about half the weight), it is highly resistant to corrosion, fatigue and cracking, has hightemperature capability, and is compatible with carbon fibre composites and the human body.

At present, titanium products are expensive because of the multi-step, energy-intensive nature of traditional production methods. However, the arrival of additive manufacturing technologies, which generate 3D shapes directly, changes the game.

Instead of machining a product out of a block of metal, where up to 90% of the metal is lost as waste, additive manufacturing builds up products layer-by-layer out of powder or metal wire, using energy from lasers or electron beams to bind the metal into a shape.

It is faster, cheaper, and cleaner – and it will change the way the world does business.

“We already have the highly skilled, educated workforce needed for computer-aided design of products and management of the high-technology additive manufacturing facilities,” he said.

“With the right technology, we would gain a powerful edge over mass-scale, low-wage producers overseas. Additive manufacturing enables labour efficient manufacturing, and is suited to investmanmonthly.com.au

ment by small businesses, so there is huge potential for growth,” he said.

At present, Barnes is working with his CSIRO team to implement additive manufacturing methods locally to make items Australia can sell overseas.

CSIRO Future Manufacturing Flagship 03 9545 8310, www.csiro.au

Goggles protect against particles BOC’s UMATTA safety goggles provide wrap-around protection for workers performing machining tasks. They are said to provide a high level of protection, in a stylish and affordable package.

The safety goggles are designed to be comfortable to wear, incorporating a blue nylon elastic strap and a soft, flexible PVC frame which adjusts to the user’s face. The strap is adjustable and removable, ensuring the goggles stay put when

required. An anti-fog, polycarbonate lens minimises fogging and provides splash resistance while allowing air circulation.

The goggles are designed for workers performing machining tasks, along with those employed in construction, finishing and painting sectors.

BOC says they are lightweight, durable, and can protect against medium-impact flying particles and chemical splashes.

BOC 131 262, www.bocworldofwelding.com.au

Two New Powermax Plasma Cutting Systems Now Available in Australia Powermax 65® and Powermax85® are the two new systems that come with more torch options, industry leading technological innovations and a more rugged torch design for greater durability in harsh cutting environments.

A number of technological advances offer improved cut performance, reliability and ease of use. Smart Sense™ technology boosts efficiency by automatically adjusting gas pressure to the cutting mode and torch length, while Spring Smart™ technology in the electrode increases reliability by eliminating moving parts in the torch body. Despite these new features the new systems are 30% smaller and up to 20% lighter than the systems they will replace in the Powermax line up.

New torch options including an ergonomic 75 degree hand torch and a 15 degree hand torch for gouging and cutting in tight locations. In addition the torches which are part of the Hypertherm new Duramax™ series are up to five times more rugged and durable than before.

Westgate Hi-Tech Machinery stocks the full range of Hypertherm Powermax hand held plasma systems with consumables ready for your cutting applications.

ACN 087 591 044

Ph: 03 9391 1133 Fax: 03 9391 1244 5 Sutton St. South Kingsville Vic 3015 sales@westgatehitech.com.au www.westgatehitech.com.au

Manufacturers’ Monthly SEPTEMBER 2011 45

MaterialsHANDLING The lighter-weight H50CT forklift is powered by a fuel-efficient engine.

Pneumatic tyre, smart forklift

Komatsu and Honda exchange vehicles to lower their respective carbon footprints.

Handling carbon emissions Komatsu and Honda’s local operations have entered into an equipment-trading agreement, swapping forklifts for cars, in a bid to lower their carbon emissions.

K

OMATSU Forklift Australia and Honda Australia have partnered to reduce their environmental impacts in factories and on the road.

Honda has contracted Komatsu to supply a range of battery-powered electric and LPG forklifts, as well as the materials handling equipment supplier’s range of OMG warehouse equipment, to Honda’s Cambellfield, Somerton and Tullamarine sites in Victoria.

The main forklift that Komatsu will supply is the battery electric FB20M-12, which performs similarly to an engine forklift but has

no emissions, according to Komatsu. In return, Komatsu will use a number of Honda's new Insight hybrid cars as company vehicles.

"The Honda Insight not only reduces our environmental footprint but also provides better safety for our staff," said Joe Hashem, general manager of Komatsu Forklift Australia.

Honda Australia's managing director and chief executive officer, Satoshi Matsuzawa, said: "Honda Australia have utilised Komatsu forklifts in our operations for many years and we are very pleased to have been select-

ed as Komatsu's supplier of choice for their new vehicles."

"Komatsu battery electric forklifts fit very well within our operation and our Insight Hybrid vehicles provide a sensible and practical solution for company fleet requirements.

“Honda Australia is proud to be working with Komatsu, enhancing our environmental vision and strengthening our efforts to reduce carbon dioxide emissions."

Komatsu Forklift Australia 02 8801 2100, www.komatsuforklift.com.au Honda Australia 1800 804 954, www.honda.com.au

ADAPTALIFT Hyster has introduced the new Hyster H50CT pneumatic tyre forklift – a costeffective solution designed to provide the right balance of efficiency, productivity, dependability and durability for materials handling applications.

The H50CT boasts smart design elements and solid construction, including sealed electrical connectors, O-ring face seal fittings on the truck chassis, and durable transmissions.

With a lift capacity of 2,500kg, the forklift has been ergonomically designed for operator comfort.

The system has a low step height of 14 inches to the adjustable tilting steer column and non-cinching seatbelt.

The forklift is powered by LP Gas, and was developed for use in medium duty environments.

An optional, 2.6-litre diesel engine is also available.

The H50CT reportedly utilises 12% less fuel than similar forklifts use on average, and it also conforms to Australian ISO safety standards.

Adaptalift Hyster 03 9547 8000, www.aalhyster.com.au

Robotic handling boosts productivity 235% ROBOTIC Automation was asked by packaging company, Amcor Cartons, to design, build and integrate an end-of-line solution to help boost productivity.

Robotic Automation provided a complete robotic solution for the packaging company, which consisted of three main technolo46 SEPTEMBER 2011 Manufacturers’ Monthly

gies: robotic palletising, Automatic Guided Vehicles (RAGVs) and automatic pallet wrapping.

Since installation, the robotic palletisers have reportedly increased Amcor Cartons' factory productivity by reducing the amount of manual handling bot-

tle-necks in the factory.

The RAGVs have allowed for a more efficient and flexible use of current floorspace and cost-free adaptability to changing needs, Robotic Automation claims.

The automatic pallet wrapping machines have reportedly

increased the efficiency of Amcor Cartons' use of stretch film consumables by a massive 350%.

The company's overall productivity is said to have increased by more than 235%.

Robotic Automation 1300 552 333, www.ragroup.com.au manmonthly.com.au

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