Manufacturers' Monthly - June 2016

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

JUNE 2016

The death of Australian manufacturing

has been greatly exagerated

INSIDE >>

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12

Keeping ahead of the game

24

On-shoring grows as off-shoring slows

40

Women in Industry

>>

NOMINATIONS NOW OPEN 2016

11th August, 2016 – MCG, Melbourne For more information and to nominate visit www.paceawards.com.au

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Inside JUNE 2016

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Managing Director: John Murphy

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Minister’s Comment

24 Cost of Manufacturing

34 Nanotechnology & Manufacturing

AMC Comment

26 Advanced Manufacturing

36 3D Printing

28 Human Machine Interfaces

38 Steel Making

30 Compressors & Pneumatics

42 Metalworking

32 Energy Management

47 The Last Word

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Editor’s Comment

8 9

10 IT@MM 14 Technology Transfer 16 Quality Control 18 Conveyor & Loaders 22 Maintenance & Monitoring

40 Women In Industry

44 New Products

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Behind the cover Is 3D printing going to do away with manufacturing employment?

As productivity goes up, the number of man-hours needed to make something goes down. It’s not always a comfortable thing to acknowledge, but it’s one of the reasons manufacturing will probably employ fewer people in total as time goes on.

Pessimists might point to the famous old quote, attributed to Warren Bennis: “The factory of the future will have only two employees: a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.”

Taken to its logical conclusion, a gradual removal of the labour input will mean a factory floor eventually staffed by zero people.

Tyler Benster, partner at 3D printing and robotics venture firm Asimov Ventures, calls it The Death of Manufacturing.

With industries such as automotive producing smaller runs, Benster predicts Carbon and other printer manufacturers will change the way finished parts are produced. Car companies, the earliest adopters of additive manufacturing - are certainly taking notice, and Ford was among Carbon’s early partners.

“And so [an auto company] produces one part - and this is a figure I’ve heard of a recent part - and to cover all the models they need 24 different moulds for a four-part assembly because there are six different configurations of this part it may need to be in,” explains Benster.

“This is for a car that is sold in quantities

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

JUNE 2016

The death of Australian manufacturing

has been greatly exagerated

INSIDE >> 12

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

Keeping ahead of the game

24

On-shoring grows as off-shoring slows

40

>>

Women in Industry

of 30 or 40,000. So you can imagine that instead of creating all those moulds and having all that lead time and all that expense, that they can just produce these individual pieces on demand and there’s a tremendous cost saving to be had.”

Manufacturers’ Monthly JUNE 2016 5

Comment

BRANKO MILETIC – Managing Editor

Unemployment down, but where’s the money for innovation?

W

ITHOUT doubt, the phrase ‘jobs and growth’ has become the omnipresent mantra for the upcoming federal election, but without getting into partisan debates about which party is better for Australia’s manufacturers, the question still remains whether its only macroeconomic tweaks that deliver the sustenance required to nurture our industrial economy or is something more concrete required?

Looking at the latest figures, Australia’s unemployment rate has stayed at its lowest in over two years.

These figures follow on from a recent report from the Australian Bureau of Statistics (ABS) showing the jobless rate at 5.7 per cent, down from 6.25 per cent last year.

According to the ABS, a total of 10,800 new jobs were created in April, which was very close to the forecast 12,500. Overall, full time employment fell 9,300, and part-time jobs rose 20,200, while annual jobs growth was found to be a modest 2.1 per cent.

So while there is ongoing resilience in the labour market, when it comes to actual new economic growth, it’s the fruits of research and development as well as innovation that should be helping increase the employment figures.

However, according to Martin Seward, American Express Vice President Global Commercial Payments, the majority of Australian CFOs surveyed admit that for the most part, their company’s approach to innovation is ad hoc, rather than strategically planned.

In fact, noted Seward, AMEX’s research titled “Game Plan for Growth: CFO’s Imperative to Fuel innovation” showed that only 40 per cent of Australia’s mid-sized businesses have a long-term game

6 JUNE 2016 Manufacturers’ Monthly

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“At the same time, in the manufacturing sector, innovation is a growth-enabler”, said Seward, adding that, “Our research shows that where the manufacturing sector is doing a lot better than others, is on the innovation front.”

“They are more inclined to have brought a new product or service to market in the past 12 months and generally be more focused on product development. On the flip side, the research also shows the sector is more likely to believe their business is at risk of failing in the next three to five years.”

“The manufacturing sector, like all sectors, should be focused on what they can be doing today to drive improvements for their customers and business, while also considering what they need to do to outshine the competition in five-years-time,” Seward said.

Maybe the term ‘jobs and growth’ should be changed to ‘innovation and investment in research and development provides long-term jobs and growth’- however as we know, that doesn’t sit quite as neatly into TV and radio sound bites as glib three-word slogans.

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Comment

CHRISTOPHER PYNE – Minister for Industry, Innovation and Science

Future Submarines to boost Australian firms Manufacturing matters to Australia’s economy: it remains integral to our nation economy through its contribution to national output, employment, R&D performance and export income, writes Christopher Pyne.

I

N 2014-15, Australian manufacturing employed around 900,000 Australians and contributed about $100 billion in gross value-added in real terms to Australia’s GDP. With an economy in transition, including manufacturing, it’s important that we set the appropriate policy settings for small and medium enterprises to thrive. And we’ve started that transition with May’s PMI (Performance of Manufacturing Index) testament to that, with 11 months of consecutive expansion within the sector, the longest run since 2006.

This transition is underpinned by our $89 billion naval ship building plan, including the next generation of submarines.

The Government’s decision that the nation’s next generation of submarines will be built in Adelaide is more than just great news for South Australia – it is an unprecedented level of investment that will deepen our industrial and advanced manufacturing capability across the country.

Along with the continuous build strategy for naval warships, it also secures the future of Australian shipbuilding.

French company DCNS has been announced as the Government’s preferred international partner to design and build the 12 Future Submarines (subject to further discussions on commercial matters).

At over $50 billion, this is the largest and most complex defence acquisition Australia has ever undertaken and it represents significant opportunities for Australian firms and workers across a range of sectors and professional and technical trades.

The Future Submarine Program is expected to create 2,800 hi-tech and manufacturing jobs — this includes 8 JUNE 2016 Manufacturers’ Monthly

an anticipated 1,100 direct jobs in Adelaide, where the submarines will be constructed, and a further 1,700 jobs through the supply chain.

Jobs will include naval architects, mechanical, electrical and marine engineers, electricians and painters, as well as system integrators and project managers.

The program will be managed to maximise the opportunities for Australian firms to supply key materials, components and equipment, including the use of Australian steel.

In making the announcement last month, the Prime Minister described it as a “momentous national endeavour.”

And he’s right – from both a

defence perspective and an industry perspective.

Australia’s defence industry is a Fundamental Input into Defence Capability. Investment in defence represents a significant boost to Australian firms and, in particular, our advanced manufacturing enterprises that can drive new technology development and produce innovative solutions for Defence.

The Future Submarines will be conventionally powered and regionally superior in terms of sensor performance, stealth and endurance.

Australia’s submarine will be a new design, to meet our defence capability requirements, and drawing on the best design and technology from France’s deep experience with

its Barracuda submarines.

To put it simply, the Future Submarine will be a highly complex and impressive piece of kit. Building it is going to take advanced skills, materials, engineering, systems and technology – but Australia is up to the challenge.

We have a reputation for building cutting-edge defence capability.

Australia has developed computer systems for the Air Warfare Destroyer, manufactured hightechnology sub-assemblies for the Joint Strike Fighter and the Super Hornet, and developed a ballistic protection system for the Bushmaster.

That reputation is set to be enhanced as we embark on the Future Submarine acquisition. manmonthly.com.au

Comment

JOHN POLLAERS – Chairman, Australian Manufacturing Council

What do Australians really think of manufacturing?

By John Pollaers, Chairman, Australian Advanced Manufacturing Council

W

HILE the headlines continue to proclaim the death of Australian competitiveness, many manufacturing companies are making their mark in the world; they are finding new opportunities and becoming the best at what they do.

Australia has an estimated 2500 advanced manufacturers who are not only surviving, they are prospering.

These are companies leveraging the latest thinking in design, technology and materials, producing for global markets.

When a sector suffers from an image problem – a confidence problem – it has knock-on effects in terms of attracting new investment and in terms of attracting new talent. So our organisation, the Australian Advanced Manufacturing Council (AAMC), partnered with the Australian Industry Group to put together a video to help dispel

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some of the rumours and to tackle some misconceptions.

You can view the video here: https://www.youtube.com/ watch?v=WW7ZW9g9y_8 Advanced manufacturing might be simply defined as being the best at what you do. It may be what you produce – or the way you produce it. An Australian manufacturing company, in order to compete in the world, must be advanced – because the conditions are tough; they are unforgiving.

Australia does not want to compromise our standard of living, our comparatively high wages; that is understood. So we have to produce high value products – hightech potentially, but definitely high margin – and that means creating something that the world wants and needs, creating it in a way that makes Australia competitive. And it means being creative about what you do,

whether it is designing a phenomenon in the global toy industry (as Moose Toys in Melbourne has done) or researching and developing a process to make carbon fibre more efficiently (as Carbon Revolution in Geelong has done).

Advanced manufacturers do not fit neatly into a single sector: they work in food processing and agribusiness, in mining equipment and technology, in a range of engineering applications, in precision instruments, in cyber technologies, in defence, aerospace and transport, in medical devices, in blood plasma therapies, and in advanced materials and chemicals.

These advanced industries might produce the next Apple or the next Qualcomm, or they might create an entirely new industry with new science, just as Cochlear, the bionic ear manufacturer, has done.

The sector suffers when

governments and the public are not aware of the opportunity – and it suffers when the challenges of global competition are not fully understood.

A great example of this is the misunderstanding about what it takes to be truly viable in a global sense – the importance of scale for instance for a small or medium sized company.

The Federal Government decision last month to raise the definition of a small business from a threshold of $2 million turnover to $10 million was very welcome.

For advanced manufacturers seeking to become global suppliers, scale is an issue. They are required to invest heavily in skills development, in process technologies, in new marketing. Ensuring these companies – who are major employers – enjoy small business support and a lower company tax rate simply acknowledges the challenges they face, and helps their growth and viability into the future.

We want to reach young people deciding on a career – to be sure we are attracting the best talent. In many industries and countries, the most indemand occupations or specialties did not exist 10 or even five years ago, and the pace of change is set to accelerate.

By one popular estimate, 65 per cent of children entering primary school today will ultimately end up working in completely new job types that don’t yet exist.

In such a rapidly evolving employment landscape, the ability to anticipate and prepare for future skills requirements, job content and the aggregate effect on employment is increasingly critical for businesses, governments and individuals.

John Pollaers has a distinguished International career in the Consumer Products and Advanced Manufacturing industries, including as CEO and Managing Director at Pacific Brands and CEO of Foster’s Group Limited.

In May 2015 he was appointed Chair of the Federal Government’s Industry and Skills Committee and in April 2016 was appointed as a member of the Prime Minister’s Industry 4.0 Taskforce.

He is Chairman of the Australian Advanced Manufacturing Council, associated with and established by the Australian Industry Group.

Manufacturers’ Monthly JUNE 2016 9

IT@MM Avoiding the perils of ERP implementation One of an IT manager’s worst nightmares involves implementing an ERP system, but as Robert Frandsen writes it doesn’t have to be the case.

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OMPANIES tend to replace their ERP systems for one of two reasons. Either an existing system has reached the end of its operational life, or it is no longer providing the level of support required.

Many companies also come to the realisation that implementing a new ERP system can be a way to gain a competitive edge.

By streamlining internal processes and improving customer service levels, they are in a better position to gain valuable market share.

These organisations have taken the step of placing technology at the forefront of their business planning.

However, because ERP systems sit at the heart of an organisation’s IT infrastructure, any changes made can have unintended knock-on effects.

Linkages with other applications and databases can be broken causing disruption to processes across the business.

Such potential problems, however, should not stop organisations embarking on integration projects. The challenge is to complete the project without causing any of these problems.

The goal might be to totally replace the ERP system or add fresh capabilities through the installation of additional add-on applications.

Regardless of which goal is relevant, the key is to treat the project as a business-driven initiative that is critical to the long-term growth and profitability of the organisation.

Steps to integration success By following a series of carefully orchestrated steps, the perils of an ERP system integration project can be significantly reduced. These key steps include: • Integration partner selection: The first step is the selection of a suitable technology partner to drive the project. This partner should have deep technical knowledge as well as a thorough understanding of the organisation and its activities.

• Pre-project planning: Before any changes are made to the existing infrastructure or additional capabilities added, the entire implementation project must be carefully 10 JUNE 2016 Manufacturers’ Monthly

mapped out. This planning process should cover everything from timelines and expected go-live dates to areas of responsibility for both the organisation and its implementation partner.

• Specific staff members should be nominated as ‘super users’ who can be trained and then assist others as required. A progress meeting schedule should be created and agreed with lines of responsibility and communication made clear for all involved.

• Compatibility checks: Not all applications are designed to work cohesively or be readily linked to existing systems. Working with the implementation partner, the IT team should determine whether the proposed new ERP system can be integrated with other core IT systems.

There can be particular challenges when it comes to linking a new ERP system with legacy databases. Popular databases, such as SQL Server and Oracle, are robust and able to meet the performance demands of an ERP system, however many organisations have databases in place that were never designed for these kinds of workloads.

Examples of these include FoxPro and Access.

If the underlying database cannot provide the required support for the new ERP system, complications can arise. As well as core applications becoming unstable, a lack of support can make it difficult to create links to standard tools such as tablets, scanners or other third-party peripherals.

• Comprehensive testing: Prior to switching operations to the new infrastructure, it should be thoroughly reviewed in a quarantined test environment.

This will allow all new linkages to be tested for incompatibilities and flows between databases and other applications to be reviewed.

Any required changes can then be made before the new system is put into full production.

• Document changes: Keeping comprehensive documentation of all changes made to a complex IT infrastructure is vital.

Staff who work on the project will inevitably move on, taking their in-depth knowledge of what has been undertaken with them.

• Proper documentation will ensure that any future alterations can be carried out with full knowledge of exactly what is in place and how it has been configured.

• User acceptance testing: Once the new ERP system has been implemented, rigorous user acceptance testing should be conducted prior to it being put into production. This testing will identify any issues with functionality and user interfaces. Fixing these prior to going live will minimise disruption and help with rapid user acceptance of the new technology.

By taking a methodical and measured approach to the implementation of a new ERP system and its integration with existing applications, the chance of problems can be significantly reduced. In this way, business and IT strategies can be closely aligned, thereby delivering the most benefits in the shortest period of time.

Robert Frandsen is MD of InfoMotion, 1300 674 994, www.infomotion.com.au manmonthly.com.au

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IT@MM Keeping ahead of the game Out-dated, clunky ERP systems continue to restrict manufacturers’ ability to adapt to change, manage staff and grow the company. Alan Johnson reports.

A

STUDY taken earlier this year by The CEO Institute and Pronto Software has revealed some of the key challenges and concerns facing Australian CEOs in 2016.

The survey of more than 175 Australian CEOs from various industries, including manufacturing, highlights the importance of technology in today’s competitive marketplace.

Just over one-quarter (26 per cent) of survey respondents considered disruptions and opportunities caused by technology to be one of the most significant trends they will face in 2016.

Those CEOs who saw technology as an opportunity tended to focus on how it will allow them to make large-scale changes to their business processes.

On the disruption side, Chad Gates, COO with Pronto Software, said these sorts of technologies can be unsettling for manufacturers, particularly if they don’t see them coming or they’re not geared up for them.

“The main driver of technology disruption is that many incumbent businesses have been doing things a certain way, then suddenly a disruptive technology comes along that upsets the apple cart.

“That could be 3D printing (Additive Manufacturing), which has the potential to completely change the way manufacturers tool up and reduces the barriers of entry.”

Gates says it’s about how they adapt their existing processes to suit, especially if they have a heavy investment in tooling and machinery, which might end up being redundant overnight by someone who is more agile than they are and can use 3D printing to make the same product.

“Questions they are asking are ‘Am I doing enough to stay ahead of my competitor, and who will be my next competitor?’ and ‘Are they able to undercut me on cost, with a lot less

12 JUNE 2016 Manufacturers’ Monthly

capital expenditure than I have?’

“From our perspective in the ERP space, we need to adapt at the same rate” Gates told Manufacturers’ Monthly.

“If the manufacturer needs to change direction very quickly, for whatever reason, maybe changing from commodity manufacturing and installing some 3D printing technology and specialise in highly specialised engineered to order manufacturing, that changes the ball game for them.

“Their ERP system needs to adapt to their new business model, and that’s what’s front of mind for us.”

One of the other major concerns for CEOs revealed in the survey were the issues around hiring and retaining talented staff, with staffing

gies, and retaining the ones that do understand it, is vitally important. So they don’t get poached by other companies who are playing with the next shiny technology, particularly when talking about the younger technology.”

Gates says he has seen some new business specifically come out of that need.

“Customers have come to us saying their systems are old and clunky, and are embarrassed to show it to people who start at our company. They know they have to be up to date.”

ERP implementation According to Gates, the issues of ERP implementation have really improved in the past few years, with the latest versions.

big enough and not have to worry about it.

“With 70 per cent of our customers choosing our SaaS platform, cloud innovation is a key focus area for the business.”

However, Gates says the growth is not just because of the platform and the hardware, but mainly because of what he calls managed services – managing the software, the hardware and the platform.

“One of the services we provide, one that is very popular, is when they go to upgrade, we can spin up test environments on the new versions for them so they can see it running before they move off the older version.

“They don’t have to worry about that and it provides a real value add,” Gates explained.

ERP upgrades

Old and clunky ERP system s are not only inefficient, but a put-off to prospective employees. attracting more feedback than any other issue.

Nearly 30 per cent of CEOs highlighted staff management as an important challenge for the year ahead, including attracting, training and retaining staff.

Additionally, keeping long-term existing staff energised and motivated was a cited area for focus.

“Getting the right people on board that understand the latest technolo-

“It certainly has been a big focus for us, and is one of the reasons many manufacturers are moving to cloud infrastructure.”

He says one of the beneficial drivers is because it can reduce some of the infrastructure complexities around migration and upgrades, but also capacity.

“Customers are not interested in the size of the box they need to run their system on, they just want a box

Late last year Pronto unveiled a new face for its flagship ERP and analytics platform, Pronto Xi, in addition to a broad range of enhancements.

Pronto Xi 730 features a new web interface that offers seamless access to Pronto Xi from any device with a web connection, through deeply secure cloud functionality.

According to Gates, Pronto Xi has undergone a complete redesign.

“All the innovation within the release helps our customers be more productive; work smarter; and gives them access to information about their business from anywhere, on any device, whenever they want or need it.”

He says the new web interface provides a reliable and secure user experience including quick deployment.

“This means users can access Pronto Xi away from their usual desk environment, plus a consistent user experience means no additional training is necessary.

“Pronto has always been thin client, lightweight at the client end, but with the 730 we have moved to a zero footprint browser based user interface. manmonthly.com.au

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Other major issues raised in the 2016 survey were; business growth, economic uncertainty and managing change and improving processes.

Business growth: In 2015, approximately one in five CEOs described growth as a key area of transformation and concern.

One year later, that has grown to one in four (23 per cent of respondents). A common theme in this year’s discussions of growth is the impact on businesses of the apparent slowing of the Australian economy, with respondents calling out the need to manage a sluggish market.

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Survey results

Economic uncertainty: One in six (16 per cent) CEOs cited economic uncertainty as a key concern for 2016, and this anxiety is resulting in reduced business budgets and apprehension towards business spending.

Interestingly, CEOs are also setting more conservative targets for success.

Managing change and improving processes: Managing change was noted as a major challenge for 15 per cent of respondents.

Overall, the need for ‘change management’ was framed as a consequence of other trends, such as economic fluctuations, technological developments and international competition, particularly from Asia.

Technology is also a key driver of the perceived need to manage change.

However, CEOs were divided over the exact nature of the issue. Some saw change as a necessity in the face of existing technologies, while others spoke of harnessing innovation to drive real change.

When comparing 2015 and 2016 findings, adapting to change, managing and retaining staff, as well as business growth have remained as key concerns that continue to plague the minds of CEOs. The prevailing mood among surveyed CEOs was one of wary optimism. CEOs spoke of “maintaining momentum” and “achieving growth” even in the face of a myriad of threats.

Gates said technology is continually the trend that is perceived to be a threat, as well as a source of great opportunity.

“I urge business leaders to look at technology as the support required to help overcome these challenges identified by the research.

“By embracing a strong technological solution that’s flexible, CEOs and their teams can gain clarity regarding how their business is performing, transform underused data into actionable insights, and empower their teams to make better decisions.

“Technology can truly empower leaders, helping them navigate the company towards ongoing success,” Gates concluded.

Pronto Software 02 8875 3033 www.pronto.net

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“We have added additional multiple BOM capabilities, which allows manufacturers to perform detailed cost simulations across factories, carry out ‘what-if’ routing scenarios and costing simulations, for example. And roll all those BOMs up into a central BOM.” Other Pronto Xi 730 innovations include simpler general ledger hierarchies, designed to deliver faster period end processing with out-of-the box reports, seamless integration to Pronto Xi CRM, Sales and Inventory modules, and enhanced Pronto Xi Project application making it easier to manage projects by activity and duration.

Additionally, Pronto has expanded its partnership with IBM, offering customers the ability to rapidly integrate popular third-party business apps and systems with the Pronto Xi ERP and Business Analytics platform.

“We built the technology that has allowed us to open up the back end of Pronto so we can interface with almost any other system we like using the standard web connectors.

“Our Cast Iron capability allows us to map our system with any other system and reuse those maps across industries.

“For example, we could build a production control system or to a conveyor belt system and do all the complex mapping that is required quite easily,” Gates said.

Using Pronto Connect, Pronto’s web services architecture engine, IBM WebSphere Cast Iron allows Pronto to offer seamless cloud integration and commercialise standard connectors for fast implementations.

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Manufacturers’ Monthly JUNE 2016 13

TechnologyTRANSFER Getting new smarts Much is written about the benefits of technology transfers, but very little on ‘how-to’. Alan Johnson highlights some options.

T

ODAY most Australian manufacturers incorporate a high level of technology into the products they produce, plus in the processes they use to produce these products. And like it or not, this trend is only going to increase as industry becomes even more competitive and global.

Traditionally manufacturers have developed their technologies in-house, which can be very effective, but often timely and lacking in scope.

Instead of trying to do it all themselves, manufacturers are increasingly turning to research organisations, such as the CSIRO and technology focused Australian universities, to work with them to develop new technologies.

Dr Keith McLean, CSIRO’s director of manufacturing, says there are far more alternatives for developing new technologies available than what many manufacturers might expect.

“For example, we run a portfolio approach here with a number of options once a company comes to us and asks us to help them with a project.

“Our response might include doing it as a project; purely as a piece of contract research where we charge the client for our time. That way the client owns everything we do and can do what they like with the research findings,” he told Manufacturers’ Monthly.

Another option, says Dr McLean, is the possibility of co-investing. “In this scenario, we might not charge our full costs, but in return for that we get an up-side.

“For instance, the project could be in aerospace and we would agree that the client has all the rights for anything we develop in that market.

However we are allowed to exploit the technology into other markets, which could be defence or energy for example.

“With this scenario, if we took that technology to market with a different partner, the original partner would still get a share in any up-side such as royalties or licencing fees.”

14 JUNE 2016 Manufacturers’ Monthly

Dr McLean says the organisation is also increasingly happy to take equity in small and start-up companies.

“We might say a piece of research is going to cost this much, but because they don’t have that sort of cash-flow we might agree to some cash and some equity in return for the research work we do.”

Dr McLean says there are any number of ways the CSIRO can come to an agreement on carrying out the research.

“We try to be as flexible as we can be. For example, if it’s a small company, we have staff here funded through the Department of Industry’s Innovations Connections program, plus people here that can assist in organising Government assistance to help them do the project. We can do things like that for companies.”

And not just small companies, Dr McLean says the CSIRO has several long term strategic relationships with large companies as well.

“For example, we have been working with Boeing for 27 years and is a company we are happy to work with and often co-invest in.”

As well the CSIRO invests in its own R&D. “In this case, after we have developed a process or intellectual property, we look at how that can be exploited. When we develop technology, we either look for a partner to exploit that or we might set up a spin-off company.

“Today we make sure there is market for everything we produce before we actually start.”

He says all the above options are all widely used, with no standout method, but says the one common factor is flexibility and working with clients in a way that most suits their needs and their business.

CSIRO focuses on four key areas, one being bio-medical manufacturing which includes medical devices, material for implantations and pharma.

“We also have a program that works in chemical manufacturing and carbon fibre. We do a lot of work in this area, developing new smart, clean pro-

cesses for chemical production and carbon fibre processing and materials.”

Another area is what the CSIRO call Industrial Innovation, which is a mixed bag of activities including defence and energy.

“That’s where we interface with our colleagues in the data area, looking at robotics and automation of manufacturing processes as well.”

The organisation also works in high performance metals looking to develop new materials for additive manufacturing.

“We are trying to build the whole value train from the extraction of ore in Australia to developing continuous processes for use in additive manufacturing. “ According to Dr McLean, the CSIRO is doing a lot of work in additive manufacturing, and is now an important area for the organisation.

“About a year ago we set up an additive manufacturing capability here, and invested in a number of machines.

“Our model is to introduce Australian companies to the potential of additive manufacturing and are partnering with companies who can either do a project with us or they can come in here and we can show them how to use the equipment and they can do their own prototyping. This is proving very popular.

manmonthly.com.au

Technology TRANSFER

One recent CSIRO commercialisation project involved a technology transfer agreement between the organisation and Melbourne-based fine chemical manufacturer Boron Molecular.

can be used for a range of applications, from electronics and specialist polymers, to key components for boronic acid building blocks used in the pharmaceutical industry.”

Dr Tsanaktsidis said the deal was an example of how research and business could work together to boost Australia’s innovation in high-end chemical manufacturing.

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Under the agreement Boron Molecular, which is a CSIRO spin-out, will be able to access and license CSIRO technologies, while drawing on the science agency’s research and development expertise.

The manufacturer will then develop these technologies into commercial products that can be scaled, mass-produced and marketed globally, with CSIRO receiving a royalty on all sales.

According to CSIRO research scientist Dr John Tsanaktsidis, the agreement will simplify the commercialisation process and allow the two organisations to more rapidly bring home-grown products to market.

“This agreement will allow CSIRO and Boron Molecular to come together and commercialise high-end products and processes in a much more seamless way,” Dr Tsanaktsidis said.

Technologies that fall under the agreement are wide-ranging, including polymers used in the biomedical industry and specialist fine chemicals for polymer manufacture.

“By closing the gap between industry and the science and research sector, we have the potential to revitalise Australia’s chemical manufacturing industry,” he said.

“Ultimately it’s collaborations like this that will lead to the creation of new jobs, new infrastructure and increased capacity for export.”

The agreement builds on a strong track-record of cooperation between the two organisations, which started when Boron Molecular was spun out from CSIRO in 2001.

More recently, the organisations signed a licensing agreement which gave Boron Molecular the right to mass-manufacture and sell RAFT chain transfer agents to the global polymer industry.

CSIRO 1300 363 400 www.csiro.au

FIT

Commercialisation

One key focus for the CSIRO is in high performance metals; looking to develop new materials for additive manufacturing.

TE

“We actually have company setting up here, Oventus, who has leased some real estate and will manufacture on site here.”

The CSIRO helped the company develop the original product; a 3D printed personalised mouth guard for people with sleep apnoea.

“They have just got FDA approval for selling it in the US and is a very exciting project. And because they are on site, our scientists will interact with their team and help develop new products as well.

“With sites in Sydney, Geelong and here in Melbourne, we are encouraging companies to come along and share space with us, and see how we can work together.”

He says the CSIRO works a lot with SMEs and is looking into how the organisation can help them in a meaningful way that will help grow their business.

“Our goal to do whatever we can to help high-tech Australian businesses create jobs and create growth and exports.”

He says through networking and direct contact, the CSIRO is very keen to talk to manufacturers.

“They shouldn’t be afraid to approach us, because we are here to help companies grow and we have the willingness to be challenged and be open.”

While not a new technology, in terms of a new widget or process, Dr McLean says there is a real opportunity around the digitisation of manufacturing and Industry 4.0.

“As a country, we need to get on board as it’s a real opportunity,” he concluded.

Readers should also be aware that most universities in Australia provide similar research opportunities.

For example the University of Queensland’s main commercialisation company, UniQuest specialises in industry-university collaborations, global technology transfer, and provides access to UQ’s intellectual property and facilities.

HNOLO

Special expertise According to Boron Molecular Director Zoran Manev, the two organisations have complementary skills and capabilities that will benefit Australian industry.

“By applying our specialist chemical manufacturing expertise to CSIRO’s portfolio of technologies we’ll be able to deliver products to industry far more quickly, completing the value chain,” Manev said.

“We’ll be developing products that

manmonthly.com.au

www.dixbro.co.nz Manufacturers’ Monthly JUNE 2016 15

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23/05/2016 1:39:27 p.m.

QualityCONTROL Manufacturing 2020 Quality Mandate: make it right or do not make it at all

Helen Masters, Vice President & Managing Director, Infor South Asia -- ANZ & ASEAN

A

S manufacturers gear up for the next generation of performance standards, quality assurance is gaining a renewed emphasis. Between heightened consumer expectations and stricter regulations, today’s pressures for tight variation control are forcing manufacturers to take a closer look at their operational processes.

The bar has been raised, and manufacturers must adapt in order to remain competitive.

Now more than ever, IT infrastructure which supports end-to-end quality controls is critical. The entire company culture must have product quality as its core foundation.

This type of bottom-up focus

16 JUNE 2016 Manufacturers’ Monthly

starts at order entry and does not end until the product is received and the customer is satisfied. Underlying every process is a highly integrated real-time system for collaboration, collective innovation, proactive problem solving and continuous improvement.

Modern ERP solutions not only support the quality mindset, they go a step further, actually motivating and fueling the quest for better products.

Research firms have tried to tackle the quality issues in manufacturing and provide guidance to companies who know quality is important.

Using customer case studies as their reference point, Deloitte developed a three-part

approach, the 3V Challenge, which used Variability, Visibility and Velocity as its three core principles.

In one example, Deloitte said they worked with a company to identify potential causes of product failure and ways to make significant quality improvements. They uncovered that variability in manufacturing practices and processes among its many contractors and component suppliers, led to inconsistent production, product reliability issues and high-levels of product returns. They also found that a lack of visibility resulted in an inability to effectively monitor its geographicallydispersed supply chain, which

was inconsistently adhering to the company’s production requirements. Poor velocity of information exchange, given the lack of data-driven insights, was found to have left the company unable to drive corrective action among its many manufacturers in a timely manner.

Analytics was used to remedy these issues with Variability, Visibility, and Velocity and improve consistency reporting and the timeliness of communication. Although the solution seems simple in hindsight, many manufacturers have trouble pinpointing where to start and how to focus on the over-riding issues.

Further points to con-

sider when boosting quality include: Monitoring Warranty Claims Although experts may disagree on whether the product or process should be the first focus of attention, similar to the classic chicken-egg debate, most do seem to agree that warranty claims offer one of the best indicators of how well a product is performing. Reducing the rate of warranty claims is also one of the key financial incentives for improving product quality, and sits at the top of a CFO’s list who is looking to reduce costs associated with inwarranty service calls, depot repair and parts replacement. manmonthly.com.au

Quality CONTROL Advanced Analytics If the company has use of today’s advanced data management solutions, warranty claims can help pinpoint the exact nature of the issue. This can help identify whether it is a supplier’s faulty component, equipment on the shop floor performing below standards, operators who need additional training, or communication gaps concerning the necessary specifications. Analytics can also be used to define the correlation between cost-saving measures, such as reducing steps or speeding processes – and the rate of warranty claims. This assists manufacturers in finding the right balance between saving money and providing the quality that customers expect and demand.

Collaborative Tools Collaborative tools provide another front-line technology tactic that users throughout the organisation can leverage to boost compliance and help ensure customer priorities are met. Integrated into the ERP system, a business collaboration tool allows for comments,

questions and updates to be addressed in real-time and then captured and tracked along with relevant data in the system. This ability to tie conversations to order and product data in the ERP means valuable information can be

Product Customisations In addition to speed of delivery and product consistency, customers are also expecting more and more product customisation from manufacturers. From laptops and shoes, to cars

Analytics can also be used to define the correlation between cost-saving measures, such as reducing steps or speeding processes – and the rate of warranty claims. referenced later and accessed by the company-wide team who is working on the same project or customer order.

This allows for fast sharing of updates, last minute specification changes and critical operational issues – such as unexpected equipment downtime – that require immediate attention. Collaborative tools in manufacturing have gone from being a “nice to have” to an absolute necessity to meet today’s fast pace of change.

and recreational vehicles, consumers expect to specify particular styles, colours, components and features in many products that were once strictly made to stock. This high degree of customisation helps create customer loyalty, but it also complicates the quality control process. No longer can a manufacturer wait to perform a quality check at the end of the production workflow - that is too late.

With far too many valuable resources,

including time, being wasted if the end product does not meet specifications, manufacturers therefore need to build in multiple checkpoints in their MTO and ETO manufacturing processes. The goal is to catch errors as early in the process as possible.

As manufacturers struggle to find areas of competitive differentiation, quality control topics will undoubtedly continue to be a high priority.

Not only does a strong, multi-level quality assurance program help meet customer expectations, it also reduces costs associated with scrap and make-overs. These cost savings can be invested in other valueadding programs, further improving customer perception.

While quality control may not be the cure-all tactic that suddenly turns fickle customers into loyal followers, offering a consistent level of product value and quality does go a long way in improving customer opinion. As the old proverb says, “a happy customer is one of the best forms of advertising.”

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Streamlining intralogistics & materials handling for tomorrow’s supply chain

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Manufacturers’ Monthly JUNE 2016 17

Conveyors& LOADERS Reducing warehouse and distribution costs Automated conveyor systems offer a constant even flow of product which can improve operating efficiencies and reduce manual handling, as Jim Tzitziris writes.

W

ITH the need for Australian manufacturers to compete at a global level, cost control has become paramount to achieving business success. However, supply chain costs are often overlooked or justified in organisations as the urgency to deliver finished goods to the customer outweighs the costs associated with running the supply chain.

Supply chain costs or warehousing and distribution costs can have a severe negative impact on ongoing business costs and can hamper the business’ capacity to realise growth.

More often than not, savvy business leaders are turning to specialists who have a specific level of knowledge, skill, or aptitude in warehouse system design that are able to offer a cost effective solution that will deliver efficiency gains, offer quantifiable cost savings in labour and equipment, and reduce the risk of manual handling injuries.

Delivering efficiency gains It has been shown that a state of the art automated distribution centre can help improve output by an average of 33 per cent and at times up to 65 per cent over a manual warehouse which will regularly get blockages and a staggered effect in the flow of the product because the work tends to be completed in stages of differing tasks.

18 JUNE 2016 Manufacturers’ Monthly

With the introduction of an automated conveyor system into a warehouse, the flow of product is at an even pace and on any given day the warehouse can be run without the associated additional labour costs or excessive movements which are considered waste or nonvalue adding.

The automated conveyor system allows for constant

With the introduction of an automated conveyor system, the flow of product is at an even pace and can be run without the associated additional labour costs or excessive movements.

The constant flow of finished goods to freight carriers will provide efficiency gains in the supply chain. even flow of product which allows more control on labour costs and reduced manual handling injuries whilst also reducing the need for other additional material handling equipment.

The constant flow of finished goods to freight carriers in the supply chain network will also provide further efficiency gains in the supply chain and will in turn cause less impact to freight partners, which in turn will flow benefits through to the end customer.

Quantifiable cost savings The decision to introduce an automated conveyor system to a warehouse can be a

major change in thinking and will change the operation of the business in a positive way.

Labour units will be significantly reduced and the need to purchase additional manual handling equipment will be reduced.

With the cost of labour rising, the potential savings are enormous, these savings can be realised almost immediately.

As well, with an ageing Australian workforce, most organisations need to consider ways of reducing manual handling tasks performed by their employees, this is of a particularly concern where repetition is involved.

Automated distribution centres can help improve output by up to 65 per cent over manual warehouses.

A well designed automated materials handling system can help reduce the occurrence of manual handling injuries by negating the need to frequently lift product from varying heights, such as off pallets, and the requirement for employees to twist, lift or manoeuvre product along a packing line.

Adaptability and flexibility Manufacturers planning to invest in an automated materials handling system should ensure that it is adaptable to their business as it grows and should be flexible enough to account for changes in the business, such as changes

in the product mix, changes in throughput or changes in personnel.

Build quality is also vital, the systems should provide a value for money proposition and an attractive ROI. Cheapest is not always the best value in the long run, sometimes it’s prudent to pay a little more for better quality equipment.

The initial capital cost for the purchase of a system is always important and business’ are always looking for the best deal on a capital purchases, maintenance costs over the life of the equipment also need to be considered as well as the ongoing cost of operation.

Overheads such as electricity are becoming more important from both from an environmental and cost perspective. More importantly minimising equipment downtime is paramount to a successful and profitable business.

Jim Tzitziris is General Manager of Adept Conveyor Technologies 02 9771 4655, www.adeptconveyor.com.au manmonthly.com.au

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Conveyors & LOADERS

The curves are available in three pulley diameters and belt speeds of up to 2.5m/sec.

Curved belt conveyors ADEPT Conveyor Technologies has released a new range of belt conveyor curves from Motion06, an Austrian company.

The new standard range of belt conveyor curves is available in three pulley diameters (which correspond to three load ratings of up to 50kg) and belt speeds of up to 2.5m/sec, with nominal widths to 1500mm and inner radiuses to a maximum of 1500mm.

The belt curves are available in angles that include 30, 45, 60 and 90 degree configurations. Special application variations are available on request.

Applications for this new range of conveyor belt curves include printing and paper industries, for the linking of packaging machines or other processes,

warehousing systems, freight and courier industries, all the way through to airport applications.

According to the company, the belt curves can be easily incorporated into any existing or new conveyor system designs, with variable mounting options for drive packages, product sensors, lateral guides and supports available.

The maintenance free belt guidance system is said to be one of the most stable and robust on the market, with very low noise emissions even at high speeds.

Adept Conveyor Technologies 02 9771 4655 www.adeptconveyor.com.au

Plastic and steel conveyor chains RYDELL Industrial (Belting) is the exclusive Australian distributor for Uni-chains comprehensive range of plastic and steel table top

chains suitable for a wide variety of industries and applications.

Designed mainly for industries that use glass bottles, such as

The plastic chains are designed as a light-weight yet strong and silent alternative to steel chains.

20 JUNE 2016 Manufacturers’ Monthly

breweries and the wine and soft drinks industries, the steel chains are available in several variants including straight running, side flexing, with or without tabs, as magnet chains, and in the special Uni Super Flex design as well as the Uni-chains PLUS range.

The steel chains are said to be strong, suitable for applications running at high speed and not affected by broken glass.

The plastic chains are described as a light-weight yet strong and silent alternative to steel chains suitable for use in the food and packaging industry for conveying many kinds of containers.

Rydell Industrial (Belting) 02 9831 7300 www.rydell.com.au

Conveyor belting RYDELL Industrial (Belting) has released the Cog-Veyor Lug drive system for homogenous conveyor belting.

According to the company, the belting offers superior drive and performance in the most demanding applications.

The belting is said to be extremely durable and will not slip or track off, requiring minimal tension.

Smooth running and maximum pulling power is achieved using open tooth sprockets that intermesh with dual lugs on the bottom side of the belt.

The belts are made from polyester or urethane material, with their unique design said to offer better traction and zero slippage.

FDA/USDA approved, the conveyor belting is suitable for many applications including full food contact and raw food applications being bacteria free.

The belting is said to offer tremendous shock absorption, plus it impact and cut resistant for sharp products like bones.

Features of the belting include sprockets that are matched to the drive lugs on the underside of the belt, suitable wet and dirty conditions, and self-cleaning sprockets that prevent material build up.

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Maintenance& MONITORING Real-time monitoring for lifecycle care of crane fleets One of the biggest advances in crane safety and cost-efficient management over the past decade has been the advent of lifecycle care in real time.

N

EW remote digital monitoring and analytical technologies – such as Konecranes’ TRUCONNECT– can look inside the performance of a crane or whole fleets of cranes to accurately predict the most suitable and timely maintenance for optimum service, as well as spot impending production risks and accident hazards.

The company’s TRUCONNECT technology harnesses in a user-friendly way the power of the industrial internet, the heart of which is based on a series of machinery sensors working together to gather and analyse data for specific purposes. By operating in this way, they can enable efficiencies that were unimaginable just a short time ago.

“With powerful but highly accessible technologies, such as TRUCONNECT, crane maintenance is an entire generation ahead of the days of external inspections, laborious dismantling to find and fix problems - or simply fixing something when it fails,” said John Bailey, General Manager, Service Development, Konecranes SE Asia Pacific.

“With the accident liability that outdated practices entail – and the potential for expensive downtime that companies just can’t afford these days – old approaches are just no longer accepted as safe and productive risk management in the world-class industries we serve,” he said.

Such industries include automotive and general manufacturing, bulk materials handling, cement, mining, power generation, petrochemical, ports and container handling, pulp and paper, shipyards, steel and waste-to-energy.

In developing TRUCONNECT to complement its MAINMAN planned maintenance services to such industries, Konecranes has incorporated into the technology its experience as a major global crane and lifting equipment manufacturer, as well as the world’s largest crane service organisation, with more than 450 000 pieces of lifting equipment under maintenance agreements worldwide.

Konecranes’ 10 300 remote monitoring connections and 600 service locations worldwide – including throughout the Asia-Pacific and Australasia – have fed into the understanding of industry needs that has produced the TRUCONNECT suite of remote service products connecting data, machines and people.

Through such products, Konecranes applies the industrial internet to lead the evolution of service through remote monitoring, diagnostics, analytics and usage-based predictive maintenance – providing real-time visibility and offering 22 JUNE 2016 Manufacturers’ Monthly

customers unique predictive capabilities and crane management efficiencies.

To make the process of real-time monitoring for lifecycle care as intuitive and easy to use as possible, Konecranes has integrated TRUCONNECT remote monitoring and reporting and MAINMAN planned maintenance results captured by mobile enabled technicians into an easily accessed online customer portal, ‘yourKONECRANES.com’.

This web portal – which gives real-time browserbased access to individual customers’ equipment data and maintenance history – links usage data, maintenance data and asset details, giving a transparent and complete view of events and activities of a crane over any selected time interval. Aggregated data can be viewed, analysed and shared quickly, for a single asset or an entire fleet.

Data is sent to this customer portal from Konecranes TRUCONNECT remote monitoring and reporting technology along with MAINMAN planned maintenance findings, which can be applied to a huge variety of lifting equipment across the range of industries Konecranes serves.

TRUCONNECT gathers data on running time, motor starts, work cycles and brake condition and

Aggregated data can be viewed, analysed and shared quickly, for a single asset or an entire fleet. can also send alters by text or email of hazardous events, such as hoist overloads, emergency stops and over-temperatures.

MAINMAN planned maintenance uses Konecranes’ proprietary ‘Risk and Recommendation’ method to visually categorise findings into safety, production and undetermined risks allowing for easy prioritisation and planning of future maintenance activities by asset.

“To make the best use of this innovative technology, insights can be drawn by observing anomalies, patterns and trends, helping users make fact-based decisions,” Bailey said.

Anomalies can show up as faults, such as overloads. These events are considered abnormal and should be addressed promptly as they occur.

Knowing when an overload occurs is the first step in identifying its cause.

Patterns help reveal relationships between

variables. For example, overload or emergency stop alerts or excessive starts may indicate the need for operator training aimed at reducing human-error downtime and the risk of safety incidents. Recurring motor overheats may indicate changes needed in equipment or process.

The study of trends can help prioritise corrective action and investments. Analysing data behaviour over time supports the development of predictive maintenance.

“Our aim is not to be confusing or overwhelming with a flood of data and analytics,” Bailey said, “We have teams of experienced staff who take a consultative approach to help guide our customers’ decision making. We share our findings, provide recommendations and discuss how each action can optimise particular aspects of operations and maintenance.”

Konecranes technicians and inspectors are mobile-enabled, which means they are constantly connected to TRUCONNECT’s data through their phones, tablets and computers. They can access maintenance history, equipment usage and operating information and look up spare parts and manuals.

“Konecranes Remote Support experts can communicate with your crane, no matter where it is, and provide remote support and troubleshooting in the event of a breakdown or indication of a fault. The data from TRUCONNECT can be used to identify the need for corrective on-site maintenance and spare parts,” he said.

“TRUCONNECT’s integration into the ‘yourKONECRANES.com’ portal is designed to improve the user experience and is a key development in delivering lifecycle care in real time, which will help extend the life of valuable assets by planning better maintenance programmes and identifying faults and problems at an earlier stage.” www.konecranes.com.au 02 8796 7666 manmonthly.com.au

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DRIVESYSTEMS 30.05.16 11:33

CostOF MANUFACTURING ON-shoring to grow as OFF-shoring slows?

In the current economic climate more favourable conditions for Australian manufacturing and exporting have emerged which can make off-shoring less attractive, writes Hartley Henderson.

T

HIS can even result in some manufacturers looking to bring production back to Australia from facilities in formerly lower cost overseas locations.

Some of the factors that can encourage a closer look at on-shoring Vs off-shoring include the lower Australian dollar, substantial growth in markets relatively close to Australia, the development of high value products and niche markets, and the increasing uptake of advanced manufacturing technology resulting in lower production costs at home.

According to Tim Harcourt, the J W Nevile Fellow in Economics at the UNSW Business School, and formerly Chief Economist at Austrade, some manufacturers operate offshore production facilities in order to be close to key customers, such as Toyota in Thailand.

“However, on the other hand, skills and creativity are sometimes better in Australia. In addition, quality can sometimes be an issue in relation to off-shoring, and offshore labour costs in some countries, such as China, are trending upwards from a low base,” he told Manufacturers’ Monthly.

“Historically, logistics is a critical factor influencing the success of Australia’s export efforts. But we are close to Asia, which has become increasingly important in terms of trade and now accounts for 83 percent of our total merchandise trade.

“China with its stronger focus now on domestic consumption and investment rather than export-led growth is particularly important, and India is now experiencing significant growth and strong trade links are developing with Australia.

“In our region, the ASEAN bloc includes an economic community of 622 million consumers representing a market worth $3 trillion. This includes Vietnam which is regarded as a market with significant potential

24 JUNE 2016 Manufacturers’ Monthly

for Australian exporters, as well as the high-risk, high-return market of Indonesia.

“For Australia, the power of proximity has replaced the tyranny of distance.”

On-shoring decision Based in the Melbourne suburb of Knoxfield, Setec designs and builds innovative power supplies to convert AC to DC for specialised requirements including in the gaming, medical and recreational vehicle sectors.

The company employs 85 people in Australia plus 8 at its design centre in Penang, Malaysia.

CEO, Louise Bayliss, says that after the GFC a number of Setec’s customers were seeking cost savings, so the company started to move its manufacturing off-shore.

“Design, certification and verification continued to be done locally, but the manufacturing was located in Penang. However, we progressively found that the costs of manufacturing our products overseas were rising including the cost of labour and electricity, and there was also the increased cost of managing third party quality,” she said.

Setec CEO, Louise Bayliss “The decision was made to bring manufacturing back in-house in Australia and to develop a strategy to ensure ongoing viability by improving our local manufacturing capability. The purpose-built state-of-the-art factory which was constructed at Knoxfield in 1999 was refurbished with the objective of working smarter and embracing innovation.”

“Setec is a mid-tier manufacturer with only about 15 clients that are supplied with pieces ranging from

5,000 to 100,000 per annum. We embarked on a program to improve productivity and the cost of labour in our cost base, which involved increased investment in advanced design and manufacturing technology.”

“The key departments of commercial supply chain, engineering services, quality and R&D have been brought together with collaborative design running across the entire business.

“Steps have been taken to reduce the chance of making mistakes by removing human vagary. Previously, the labour content in our products was 40 percent and through this collaborative approach it has now been reduced to 10 per cent or less.”

“Setec now manufactures 40 per cent more product than previously with half the staff. There is a big focus on up-skilling and the manufacturing line, which has been reinvigorated, can easily be scaled up or down.”

“Electronics are getting smaller and processes are much tighter, so our main production line which was 140 metres is now 62 metres in length.”

Recent additions to Setec’s advanced manufacturing technology include robotic solder arms which once programmed can step in on the smaller more intricate projects, thus leaving the wave solder machine for the major production runs.

A dual level return transverser has also been installed to enable the constant and steady flow of build trays back through the assembly line in a consistent and timely manner, which has resulted in a step-up in production capacity by as much as 20 per cent.

In addition, versatile and mobile assembly cells have been introduced to provide greater efficiency in both oversight and pre burn-in testing.

This has facilitated quick changeomanmonthly.com.au

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Bayliss said that in the past Setec has been heavily oriented to providing power supply products to the poker machine gaming industry but over recent years has diversified into other sectors, such as medical and communications, for specialised requirements.

“For example, we are supplying Australia’s leading caravan manufacturers in the RV sector and expanding into building design involving architectural automation, including electronic sliding doors,” she said.

“The recent launch of our BM PRO

by Setec range is specifically aimed towards RV enthusiasts, assisting them in managing their battery power. Targeted at a global RV market, BM PRO BatteryCheck is a patented world first device that connects to standard deep cycle batteries and communicates wirelessly with Apple and Android smart phones via an easy to use app enabling the user to understand the battery status and overall health.

“Looking to the future, in addition to supplying OEMs in different industries, we are developing our own range of branded products with a view

V

Diversification

to marketing them direct to consumers through major Australian retailers.

“It is important where possible to eliminate high and low production cycles to smooth out revenue and this can be assisted by having our own branded products.

“Companies considering on-shoring need to look carefully at the latest equipment, people skills, and the level of investment required. The next major challenge on the horizon is China’s investment in humanoid robotics to counter rising labour costs in that country.

“Australia-based manufacturers need to be global businesses that have volume customers and products, and you need to be an exporter to do this. Our export markets are growing significantly, and some 30 percent of production is now exported to the USA.” Setec was recently awarded Telstra Business of the Year in Victoria for a medium sized manufacturer.

[Hartley Henderson is a regular contributing writer to Manufacturers’ Monthly, covering industry developments in Victoria and South Australia. Prior to that, he held senior positions in government, semi-government and business enterprises and was National Program Director with the Productivity Promotion Council of Australia] Setec 03 9763 0962 www.setec.com.au

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vers in production to ensure the least amount of downtime due to setup times or recalibrating from product to product.

Efficient burn racks have also been specifically built to cater for Setec’s innovative and high volume gaming product. These form-fitted burn-in racks allow for a fast, safe and burn-in secure solution prior to each unit’s run through final testing.

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Manufacturers’ Monthly JUNE 2016 25

AdvancedMANUFACTURING Pumped about the future Recent Endeavour Awards champion Admedus is growing briskly, with their tissue engineering process being used to repair hearts all over the world. Brent Balinski spoke to the company’s chief operating officer, Dr Julian Chick.

A

USTRALIA’S “clean and green” image is a benefit well-known to many of our food exporters.

Regulations are among the reasons it’s enjoyed, and have helped keep things like bovine spongiform encephalopathy (BSE or Mad Cow Disease) out of the country.

Strict regulations are also beneficial for medical technology companies such as Admedus, which last month took out the Manufacturer of the Year and Most Innovative Manufacturing Company trophies at this magazine’s Endeavour Awards.

“I think people don’t understand or fully appreciate that, perhaps, in Australia – this whole bio/national security [advantage],” Dr Julian Chick,

chief operating officer of Admedus, told Manufacturers’ Monthly.

“Australia is unique, along with a couple of other countries, in the sense that we are BSE-free. We are free of a lot of the other viruses, the prions and various other diseases that are seen around the world, and so the location is great for sourcing material.”

The material in question, for Admedus, is bovine pericardium – membranous tissue harvested from cow hearts, specially treated, and used in life-saving operations.

Disease-free cows are essential.

The company’s flagship CardioCel product was released in 2013 and adoption has been rapid. It is now used in over 145 centers worldwide.

Last year the company announced results of a study of 11 long-term patients (all of whom had an implant for five years or longer.) It found no evidence of calcification, a big problem for competing implants, and there had been no need in any of the 11 for follow-up surgery.

By a lot of measures, it has been a successful invention.

“You look at the first patient that had CardioCel implanted into them – this is a three-week old child that needed life-saving surgery and was probably facing multiple surgeries over the first ten years of their life,” explained Chick.

“They’re now over eight, have never had repeat surgeries, have a good, healthy condition, and are leading a normal life.”.

According to the ASX-listed company’s count, implants of the single-ply bioscaffold – made using the company’s ADAPT tissue engineering process – totalled over 50 in December 2013, 1,100 in December 2014, 3,100 in December last year, and topped 4,000 in March.

Admedus opened its manufacturing facility in Malaga in August 2014.

Its quality management system is based on ISO 13485.

It currently employs around 20 directly in production and another 30 indirectly. It is “pretty much a sciencetrained workforce”, said Chick.

“The skillset within the organisation does vary across the board, but we do have everything from top medic and bio-engineering background folks, senior scientists, right through to regulatory and quality assurance people that are pivotal to that manufacturing process.”

It can be done in Australia

The tissue engineering process involves sourcing the raw material, treating this in special detergents and removing all DNA, RNA and animal cells, stimulating protein-protein interactions, and encouraging strength and elasticity in the patches.

26 JUNE 2016 Manufacturers’ Monthly

The tissue engineering process involves sourcing the raw material, treating this in special detergents and removing all DNA, RNA and animal cells, stimulating proteinprotein interactions, and encouraging strength and elasticity in the patches.

“At the moment is sold as a flat product. Imagine a business card,” explained Chick, adding that the company is in the middle of efforts to grow its range of solutions.

“And we have that but we have the ability to shape that in the shape manmonthly.com.au

Advanced MANUFACTURING of – if you imagine a half a pipe or a bit of plumbing material. But that’s particularly for vascular surgeons.”

CardioCel is part of the regenerative medicine division of Admedus, with the other area of focus in immunotherapies. This includes commercialising Herpes Simplex and Human Papillomavirus vaccines (currently in clinical studies) with Professor Ian Frazer (inventor of Gardasil, made

by CSL).

Longer-term efforts in regenerative medicine include using tissue created by ADAPT to deliver stem cell therapies. Implants for repair of dura mater (a lining of the brain and spinal cord that can be damaged in traumatic injuries) are currently being tested.

The method of engineering biomaterials came from and was led by Professor Leon Neethling, whose bio includes opening the world’s first heart valve bank, in South Africa, in 1984.

A small amount of CardioCel implants were made, prior to Admedus’

factory opening in 2014, at Royal Perth Hospital.

European approval took place in 2013 and in the US the year after, with the first shipment also taking place in 2014. Since the launch in 2013, the range of products based on ADAPT has grown to six.

The journey from raw technology through labs and trials to product took roughly 10 years, said Chick.

“And it’s a good example of it being able to be done in Australia,” he added.

Chick, who has a PhD in muscle physiology and a background in investment banking as well as diagnostics and healthcare companies, has strong feelings about what could be done to better encourage the commercialisation of promising raw technologies.

“It’s a bit of a hobby horse of mine,” he said, adding that the issue is an old one and spans a lot of different industries.

It is one particularly strongly felt in medical manufacturing, with many

ideas floated in the last few years – often around taxation rates – about how production can be kept here.

Though the Australian environment has its pluses – including around biosecurity – there’s a need to do better on a number of fronts to keep the benefits of locally-created IP here, said Chick.

“Look at Gardasil – that’s a prod-

uct that sells $US2 billion a year,” says Chick.

“It was invented here in Australia and Australia gets about $100 million of that $2 billion, a small per cent of the returns on that product.

“So I think greater collaborations for B to B, academia, organisations to industry, and anything [else] we can do to support that – that to me is the key.”

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HMIs A snapshot of the HMI market Human-machine interface (HMI) technology is becoming increasingly prevalent; not just in everyday life, but in industry too. A newly-released report reveals some of the current trends and future developments in HMI, Stephanie Stefanovic reports.

Defining HMI

with those which are faster and have more efficient control and monitoring systems, in order to improve productivity and reduce operating costs. This is coupled with increasingly stringent safety regulations that require the use of HMI technology to reduce workplace accidents.

Just as in the case of the automotive and oil and gas industries, while North America and Europe represent the largest regional markets, Asia-Pacific currently represents the fastest-growing regional market for HMI technologies and is predicted to become the largest regional market throughout the forecast period. According to the research firm, this can be attributed to growing industrialisation, and the fact that manufacturers from developed regions are expanding their presence in this region in order to take advantage of low manufacturing and labour costs. The majority of the demand for HMI solutions is expected to be from growing pharmaceuticals, automobile and food and beverage sectors in the region.

Human-machine interface is a component of devices that enable humanmachine interactions. This means the interface consists of software and hardware that allow user inputs to be translated as signals that provide the user with the required result. Prime examples of HMI technology include smart phones, personal computers and tablets. However, HMI technology is not limited to personal use; HMI products of all kinds are being released for use across a wide variety of industries including manufacturing, food and beverage, pharmaceuticals and oil and gas.

The HMI market Recently, a report was released by global market research and counselling firm Credence Research, entitled Human Machine Interface Market – Growth, Share, Opportunities and Competitive Analysis 2015-2022. The report provides an analysis of the HMI market from 2015 to 2022, and states that the global HMI industry is expected to see significant growth throughout the forecast period.

The report begins with current statistics, which are from 2014.

These statistics show that in 2014, industrial software for HMI accounted for the most global revenue when compared to other solutions including interface software, displays and touch screens, and other miscellaneous solutions.

According to the research firm, this can be attributed to a number of factors. Firstly, for some time now, global manufacturers have been integrating their technology on the factory floor with advanced touch screen technologies, in order to improve both the production process and their operators’ experience. There has also been a shift towards bring your own device (BYOD) policies, which have 28 JUNE 2016 Manufacturers’ Monthly

Current trends increased the demand for mobile devices on factory floors. These factors are expected to fuel the demand for touchscreen technologies and industrial PCs throughout the forecast period 2015-2022.

The report also showed that in 2014, automation was the most popular application for HMI providers, accounting for a large percentage of the global revenue share, along with mining and oil and gas. The research firm has forecast that the global automotive sector will maintain its dominating position throughout the forecast period, because HMI solutions are proving useful in reducing the operating cost and control and

monitoring of manufacturing processes for automotive manufacturers.

While the automotive sector may remain the largest source of revenue, the oil and gas sector is predicted to see the fastest growth, due to an increasing demand to access information physically and virtually from remote areas. Pharmaceutical manufacturers are also expected to increase their adoption of HMI technologies.

As far as regions of growth are concerned, in 2014 North America had the largest regional market, followed by Europe. According to the research, this is explained by rising market competition that is encouraging manufacturers to replace outdated machineries

Current trends in HMI technology for industry include: • The modelling of HMI technology based on current mobile technology, meaning bigger screen sizes, increased resolution and multi-touch capabilities.

• HMI solutions that support multinode, multi-process applications with intuitive graphic interface for complex manufacturing and processing applications.

• HMI solution providers working with clients to provide customised solutions for control of their plants.

• Integrated SCADA and HMI solutions.

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Compressors& PNEUMATICS Improving energy efficiency of compressed air

I

F a compressed air station isn’t running properly, it will be using more electricity than needed – and wasting electricity is wasted money.

BOGE distributor Cleveland Compressed Air Services (CCAS) helps users understand their usage profile, enabling them to reduce energy consumption and overall business costs, solve compressed air problems and improve productivity.

A customised audit at Aqua Leisure Technologies (ALT) investigated leakage and provided consistent and accurate results.

CCAS is one of the biggest independent suppliers of air compressors and service in Western Australia and has been working as a premium dealer for BOGE Compressors since 2009.

For the past 15 years, CCAS has provided quality service and advice to Aqua Leisure Technologies (ALT) – the largest manufacturer of technologically advanced swimming pools in Australia. In 2015, ALT engaged CCAS to conduct a compressed air energy audit on their existing system in Welshpool to understand their usage profile, reduce energy consumption and overall business costs and improve productivity.

A compressed air energy audit is often the first step to reduce operating costs, improve manufacturing productivity and reduce capital spending. “It is essential to address all air compressor problems and look at the big picture in order to create a total solution”, explained CCAS Project Engineer, Syed Abbas.

Today’s advanced energy surveying equipment can audit all areas including generation, treatment, distribution and process usage. To measure the systems power, output performance and cost of energy, Abbas used a data logger over a 24-hour cycle for a typical week.

The data revealed that the 75 KW compressor was operating inefficiently between 35 to 40 per cent load at the production levels at the time and estimated that the additional cost of 30 JUNE 2016 Manufacturers’ Monthly

operating this compressor would be 35,000 dollars per annum in power usage alone.

Leak detection Leaks are a significant source of wasted energy in a compressed air system, often wasting as much as 20 to 30 per cent of the compressor’s output. “All compressed air systems have leaks – even a well-maintained system may leak by as much as 10 per cent, but the leak rate of an unmanaged compressed air system can be as much as 50 per cent of the generated output and in certain applications even higher figures have been measured.”

“An audit can detect each and every leak – even from a long distance (up to 15 meters) – which is useful in places that are not easily accessible or visible, optimising your resources and significantly reducing energy losses,” said Abbas. A leak test on the ALT compressed air piping system indicated a leakage rate of 24 l/sec, with the estimated cost of producing this amount of air is $6,270 per annum.

Recommendation As result of the audit CCAS recommended the installation of new BOGE equipment including the frequency controlled BOGE SLF61-3 and S40-3 compressors plus BOGE

DS120 and DS75 refrigerated air dryers as well as BOGE CC oil water separators all managed with the BOGE airtelligence provis 2.0 central control system.

“The use of system controllers, which control multiple compressors around a single set pressure, is one of the individual measures that results in the greatest and most sustainable improvements in efficiency,” said Abbas.

Using the actual compressed air consumption, the BOGE airtelligence provis 2.0 for instance calculates the increased or reduced requirement and automatically selects the optimal compressor combination. The provision of compressed air based on consumption means that idle time is virtually completely eliminated. This significantly increases the energy efficiency of the compressed air station.

Improvements for Aqua Leisure Technologies To demonstrate the improved efficiency and longterm savings, CCAS conducted an audit of the new system, compared to the existing system in Welshpool.

Results showed significant control improvements as well as an annual saving of nearly 54,000 dollars which means ALT made back the money they invested getting the audit done over 26 times.

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EnergyMANAGEMENT Information the key to unlocking energy savings

V

OLATILE energy prices, inconsistent supply and increasingly stringent environmental regulations directly impact the profitability of manufacturers.

With electric motors the driving force behind most production output, improved motor control performance and motor efficiency means greater overall production efficiency.

Reducing a fan or pump operating load by only 20 per cent can result in up to 50 per cent energy savings. In today’s competitive environment, this is a saving that manufacturers simply cannot afford to ignore.

According to Rosanne Sabiston, business manager

power control business at Rockwell Automation, energy is becoming more expensive as we move towards renewable energy.

“While any manufacturing plant can produce a product, the ones that survive are the ones that can do it smarter and at a lower cost.”

Smart manufacturing is driving new opportunities for end users as they look to optimise their production and supply chains by bringing together islands of information.

Advances in technologies such as the Internet of Things, are enabling devices to get smarter and meet endusers networking, integration, diagnostics and intelligence demands.

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These intelligent devices can be easily integrated into a facility and provide access to information about energy usage in real time. Motors and drives are gaining improved integration and connectivity.

“Motor control devices such as variable speed drives and overload relays are becoming more intelligent.

“By connecting them over Ethernet, manufacturers can proactively monitor where their energy is being used, providing information that enables decisions to be made about where energy savings can be made,” explained Sabiston.

Measuring power and energy Energy monitoring and efficiency technologies are advancing their real time data capabilities and mobility.

To remain competitive, organisations need to keep informed of the latest technology advances in power and energy management.

To address this, Rockwell Automation has developed solutions to help monitor, manage and optimise energy usage to reduce overall energy costs. FactoryTalk EnergyMetrix is a web-enabled management software package that gives plant operators access to critical energy information from virtually any location.

This software provides a complete energy-management decision support tool, providing the capabilities to capture, analyse, store and share energy data with key stakeholders. This knowledge

can then be distributed to optimise energy consumption, manage power quality, correlate energy usage, determine cost to production, negotiate energy rates and improve efficiency.

The Allen-Bradley PowerMonitor 5000 leverages new technology and capabilities to capture comprehensive power quality data about a plant’s energy network.

This meter provides detailed power quality data that, when used with EnergyMetrix software, can provide a powerful set of data analytics to understand and take action on power quality issues and energy management activities.

Accurate, real-time data is essential in leveraging energy as an area of cost savings within the plant. This is

particularly important when it comes to intelligent motor control, which enables the integration of motor control devices into the plant-wide control system.

This level of connectivity delivers improved energy management and reduced energy consumption, which improves both profitability and environmental impact for manufacturers and other heavy industries.

The intelligent MCC allows users to monitor and analyse operations from anywhere at anytime. With access to more detailed information over longer periods of time, users can better predict potential problems and prevent catastrophic failures.

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Nanotechnology & MANUFACTURING Not just for quantum computing and not just for researchers UNSW is home to a vast array of world-class nano and micro-fabrication tools, which are available to manufacturers looking for an edge in product development. Brent Balinski spoke to ANFF NSW’s Dr Nadia Court about the Kensington lab.

A

USTRALIA, and in particular Sydney, has emerged as an area of great quantum computer expertise.

Recently the University of Sydney opened a $150 million nanoscience hub (including a $10 million quantum lab), attended by Microsoft senior executives. The same week, fellow sandstone university UNSW officially had the PM open its new Centre for Computation and Communication Technology.

UNSW has been at the forefront of the race to build a quantum computer since the 1990s, focusing on a silicon-based approach to fabrication.

Last October researchers using facilities at the UNSW-headquartered Australian National Fabrication Facility announced they had built a quantum logic gate in silicon - the world’s first - getting two quantum bits in silicon “to talk to each other”.

The material, with a half-centuryplus history in shaping the world of computing, could be ready to do it all over again.

Its history means a head start over

34 JUNE 2016 Manufacturers’ Monthly

other methods for constructing a computer, with trillions of dollars and many, many careers already invested in silicon manufacturing.

“We know we can do it because we’ve basically done it with the whole computing industry,” Dr Nadia Court, Projects Manager at the ANFF NSW Node, told Manufacturers’ Monthly.

The facility, opened in 2008, is very much involved in making super-smallscale stuff for quantum applications.

However, this is only a portion of what goes on at the network of laboratories within UNSW’s Newton Building.

The micro and nanofabrication centre hosts 750 square metres of lab space, more than half of this cleanroom area. The four cleanroom spaces are classed ISO 5, 6 and 7, and are kitted out with over $30 million of state-ofthe-art equipment. A recent addition was a molecular beam epitaxial growth laboratory, opened by education minister Simon Birmingham last October.

Importantly, the facility is open access, both to outside researchers and to industry, with highly specialised equipment that is available nowhere else to industry users.

This includes two tools for highquality molecular beam epitaxy, able to grow novel, atom-depth materials.

Both are open access.

“The III-V (3-5) MBE specialises in epitaxy of compound semiconductors and is currently the only open access III-V MBE system in Australia,” pointed out Court.

(III-V refers to elements in the third and fifth columns of the periodic table.)

There is another open access II-VI compound semiconductor MBE system at the WA node of ANFF in UWA. “The second ‘Laser MBE’ tool [at ANFF NSW] specialises in oxide epitaxy and is also the only open access tool catering to these materials,” Court added.

Assistance with R&D Among users of the lab’s expert fabrication capabilities is the country’s only semiconductor manufacturer, Silanna, who use ANFF NSW for leftof-centre bits of development.

“They’ve got their own R&D facility and have got a cleanroom setup primarily for R&D,” explained Court.

“They really only need us when they have a niche that doesn’t suit their R&D.” Sensing start-up Zedelef (a university spin-out with clients in defence, and oil and gas) is another guest at the UNSW labs. It has used access to develop its hybrid liquid/ crystal optical fibre devices, cutting out on the need to invest in capital expense.

“For them we’re providing fee-for-

manmonthly.com.au

Nanotechnology& MANUFACTURING service subscription but also access for their researchers to do assembly of their devices and their prototyping development,” added Court.

“They also have access to process engineering staff for helping process development.”

Expert process engineers and training, as well as tool time, are available for hire at the site. (Rates are available from the facility via enquiry.)

ANFF concedes that industry use is below what it could be, and makes up about a tenth of the hours spent at its facilities (there are eight nodes around the country).

As representatives from other publicly funded facilities will sometimes say, it can be difficult to get noticed by smaller manufacturers, who are often uninterested in or intimidated by the idea of visiting research institutions.

Recent projects Much of the work that takes place at the site is around semiconductors and advanced nanoelectronics. Some of it has gained global attention, and one effort could perhaps redefine the way electric current is defined.

Nanowire wrap-gate transistor work tackles the challenge of fitting more and better transistors onto a circuit, with the end of Moore’s Law something we’re approaching.

The limit of how small transistors

can be made is getting nearer, and chip companies have taken to building these up into 3D structures.

“The problem is once you go smaller and smaller you can potentially also get leakage out - it’s only constrained at three sides, not four,” explained Court of electron flow.

Research using electron beam lithography (ANFF NSW possesses three EBL machines) to align the gates and interconnects, as well as the structures contacting the nanowire, show the potential of horizontal nanowires, which are tipped over after being chemically “grown” upwards.

“What the guys from UNSW have been doing with collaborators in Sweden is [based on] ‘what happens if you just knock those nanowires over?’ And then we can have a look at reducing complexity,” said Court.

“Basically what they did is to show that for two, three, five transistors they see no degradation in the performance of the transistors. But that’s only one fabrication step, as opposed to maybe five or six individual fabrication steps per transistor.”

Another piece of work at the nanoscale was around creating a quantumdot transistor - a silicon electron pump - able to pump 500 million electrons per second at 99.997 per cent accuracy.

It is hoped that such a quantum device will be able to improve in

accuracy further still and serve as a way of redefining the basic unit of current, the amp.

“It’s kind of cool that we might be potentially in some way linked to a quantum standard for electrical current,” offered Court, who said the work was currently being optimised using gallium arsenide.

And of course, the facilities’ atomic-level precision fabrication capabilities will continue to be used as the university sprints towards the goal of a working silicon-based quantum computer. It hopes to have a 10-qubit prototype up and running within five years.

The expertise in this field both at

the university and within Australia is starting to get a lot of attention, including from private enterprise.

Following the announcement last October, for example, both the Commonwealth Bank (which already invested $5 million in 2014) and Telstra announced $10 million of support for the project.

“That was all made here at UNSW,” Court proudly pointed out of the logic gate.

“And I think Australia is starting to get known for how good they are at quantum computing.”

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Manufacturers’ Monthly JUNE 2016 35

3DPRINTING Talking about the death of manufacturing Is 3D printing going to do away with manufacturing employment? Brent Balinski spoke to Asimov Ventures’ Tyler Benster about a provocative suggestion.

A

S productivity goes up, the number of man-hours needed to make something goes down. It’s not always a comfortable thing to acknowledge, but it’s one of the reasons manufacturing will probably employ fewer people in total as time goes on.

Pessimists might point to the famous old quote, attributed to Warren Bennis: “The factory of the future will have only two employees: a man and a dog.

The man will be there to feed the dog.

The dog will be there to keep the man from touching the equipment.”

Taken to its logical conclusion, a gradual removal of the labour input will mean a factory floor eventually staffed by zero people.

Tyler Benster, partner at 3D printing and robotics venture firm Asimov Ventures, calls it The Death of Manufacturing.

“So if you think about manufacturing as a [word] and as its Latin roots would indicate, labour is a key input for the production of a good, a key input in the variable cost of production,” Benster told Manufacturers’ Monthly ahead of the Inside 3D Printing Sydney event.

“And the world that I see us transitioning towards is one in which labour is no longer an input in the variable cost of production. Now that has, I think, some fairly dramatic second- and third-order effects.”

Reasons for this transition include enablers such as 3D printing, which Benster has been obsessed with since he read an article on engineer Hod Lipson’s “Desktop Factory” in Popular Science, about a decade ago.

This was followed by an effort at 16 to build his own desktop machine, a RepRap Darwin.

Regardless, Benster believes that manufacturing, at least as we know it, “will die”.

The coroner’s report might cite new additive manufacturing technologies, able to do things far more interesting 36 JUNE 2016 Manufacturers’ Monthly

than build up ABS plastic tchotchkes at excruciatingly slow speeds.

Available recently or soon are printers able to print in conductive inks and plastics, as well as with far greater speed and part strength/quality than previously possible.

Hype down, usefulness up Despite his young age, Benster is a respected industry observer, a regular presenter at the Inside 3D Printing Series and a contributor to the highly influential Wohler’s Report.

He agrees with the notion that additive manufacturing is far more interesting now than when it was exciting, such as in 2012 (a “tipping point” year) when books and maga-

zine articles were feverishly promising “a new industrial revolution”.

Two of the reasons are the Carbon (formerly Carbon3D) M1 machine, made available this month, and HP’s Multi-Jet Fusion, to be released later this year.

Both are heavily geared towards industrial customers, rather than the maker community.

Carbon recently told Computer World that its printer, which uses UV light to cure isotropic (rather than layered) parts, is competitive with traditional manufacturing for production-ready runs of up to 45,000.

Its speed is claimed to be up to 100 times faster than methods such as polymer jetting.

The machines are offered on a subscription basis. The company’s range of products includes nine proprietary resins offering things like heat deflection up to 219 degrees Celsius and elastomer properties.

With industries such as automotive producing smaller runs, Benster predicts Carbon and other printer manufacturers will change the way finished parts are produced. Car companies, the earliest adopters of additive manufacturing - are certainly taking notice, and Ford was among Carbon’s early partners.

“And so [an auto company] produces one part - and this is a figure I’ve heard of a recent part - and to cover all the models they need 24 different moulds for a four-part assembly because there are six different configurations of this part it may need to be in,” explains Benster.

“This is for a car that is sold in quantities of 30 or 40,000. So you can imagine that instead of creating all those moulds and having all that lead time and all that expense, that they can just produce these individual pieces on demand and there’s a tremendous cost saving to be had.”

Benster predicts that HP will also catch many manufacturers off-guard, describing it as fairly analogous to selective laser sintering, a superior replacement in terms of quality, and with more than ten times the speed. “[And] if you look at the actual cost structure of a 3D printed good, machine amortisation is a major component of the cost, perhaps as much as 20 to 30 per cent,” he said.

“And so reducing the machine amortisation part of the good by perhaps ten times overnight will have a dramatic impact as to the calculation of if traditional manufacturing makes sense or if it makes sense with [3D printing].”

Though it may not replace injection moulding (for large quantities, at any rate) or casting in the near future, additive manufacturing will manmonthly.com.au

start to eat into some of the more traditional manufacturing areas.

In plastic, for example, there’s plenty to attack: over 300 million metric tons globally a year, points out Benster.

was the delivery of the first LEAP-1A engine (with 19 3D printed super-alloy nozzles) to Airbus for its A320 neo.

As for what this all means for jobs, the use of more automated means of production (in this case, additive

“The factory of the future will have only two employees: a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.”

Ready to fly And it’s even starting to make its way into metal parts for aerospace, a challenging task for certification and other reasons.

This month Alcoa and Airbus announced that printed titanium fuselage and engine pylon components would feature on planes, with the first delivery of parts for mid-this year. Another landmark for April 2016

manufacturing) will not, in aggregate, add workers to the factory floor.

Employment levels in manufacturing (at least counting the production component) have been heading downwards in developed countries since the GFC. This has fed fears about the effects of automation on jobs, with the recovery in manufacturing jobs not matching the overall economic recovery.

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“Manufacturing in the future will

not involve labour, that’s the story that’s happening right now,” he said.

“However, I do think that we’ll see better designed products, more products, and more opportunities to have people involved on the design side, even as the actual act of producing becomes commoditised.”

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Manufacturers’ Monthly JUNE 2016 37

SteelMAKING

Little future in Australia focussing on garden variety steel Can Australia still make steel?

Brent Balinski spoke to metals expert Professor Geoff Brooks from Swinburne University about the industry’s difficulties, where it can excel, and the competition it faces.

38 JUNE 2016 Manufacturers’ Monthly

manmonthly.com.au

Steel MAKING

A

USTRALIA’S last two major steelmaking sites have had to fight for their lives in the last year, and it is safe to say the local steel industry has struggled.

A major problem is a lack of strategic focus on areas where manufacturing makes sense specialised, high-value products, rather than stock-standard, lowcost ones - at the Whyalla and Port Kembla sites in question. This is the opinion of Professor Geoff Brooks, Pro-Vice Chancellor (Future Manufacturing) at Swinburne University and a leading authority on steelmaking.

“In the short-to mediumterm, we are in serious problems, because our steel producers are probably too much aimed at the lower-quality product end of steel, and this means they can’t compete very well with cheap production from China and other parts of the world,” he tells Manufacturers’ Monthly.

Though China isn’t the sole reason for BlueScope’s and Arrium’s difficulties, its offloading of under-priced surplus steel is huge concern for them as well as for many countries. Arrium (which makes mostly rod and bar steel) and BlueScope (which makes what Brooks describes as “mostly midgrade sheet steels”) are very much exposed to the dumped basic products.

Brooks believes that at Whyalla, investment in equipment such as a vacuum degasifier to produce higher-grade steel is necessary if the site survives the administration process and is to have a future past the current crisis.

A lack of innovation As he did the last time Manufacturers’ Monthly spoke to him, Brooks pointed out a lack of innovation in local metals production in the last decade or so. A model worth considering is Sweden, with a population of only 10 million, though an industry that creates premium stainless steel, most famously at companies like Sandvik.

There are examples of nonmanmonthly.com.au

stock products here that have been successful such as coated steel at BlueScope and grinding media at Arrium subsidiary Moly-Cop. The issue of co-investment in upgrades at Whyalla to produce the special flat steel for the upcoming future submarine fleet is at least reasonable to consider, believes Brooks. However, any upgrades should enable the company to also target export markets.

“I’d be thinking, ‘let’s get clever at making this sort of steel and we can think about selling that to other countries,’” he adds.

Currently, only BlueScope is able to produce suitable steel for the purpose. The French company is set to visit Arrium later this year about its capabilities.

Whatever the outcome on steel supply, the first submarine will not be built until next decade.

Dealing with dumping For the time being, the issue of dumping is a pressing one.

According to the World Steel Association, 1622.8 million tonnes of crude steel were made. China accounted for 803.8 million tonnes.

industry’s) 86 per cent of new antidumping investigations in 2014/15 were for steel products.

Taking action against China’s steel industry is a sensitive issue. By some calculations, over 60 per cent of their steel is made from Australian iron ore - our top export.

The Minerals Council of Australia warned the prime minister - who, with the United States, is trying to encourage China to wind back overproduction - that “we

There are good reasons why Australia should maintain its strategically important steel sector.

Recently re-opening some of the mills that were closed last year due to better prices for the commodity, China has added roughly 50 million tonnes of capacity this year, according to figures from research house MySteel in Aprit. Australia’s entire output last year was less than a tenth of this.

Big swings in production in the massive command economy - and the glut when demand doesn’t meet up - are of huge concern to other countries’ steelmakers.

According to the Productivity Commission (whose views on the need for dumping protection aren’t always consistent with the

should make clear there should be no artificial interference in the global steel market.” How artificial the market is and why depends on who you ask, but iron ore exporters are naturally happy with China buying their product and are not keen to see the boat rocked.

Brooks calls action against dumping “completely reasonable”, and a real concern for countries that care about having a steel industry. He cited the monthly South East Asian Iron and Steel Industry Institute newsletter on the desk in front of him.

“Almost every single article in it is about countries trying to protect themselves from steel

dumping… the reason being that in steel, China is like a giant elephant,” he said.

“Countries of course don’t want such an important industry to be crushed by a casual change in what the Chinese are doing.”

Elephantine struggles against dumping aside, with a smarter approach to steel and a focus on higher-value products, he believes there are good reasons that Australia could be a successful steelmaking nation. Also, a nation without the ability to make its own steel is exposed in a number of very undesirable ways.

There are good reasons why Australia should maintain its strategically important steel sector. However, it shouldn’t just be a matter of surviving in the longer term, according to Brooks. Rather, it should be about excelling.

The nation actually has some pretty decent advantages: excellent ores, plentiful coal supplies, good ports, an educated population and proximity to fast-growing Asian economies, presumably hungry for things such as new kitchens and whitegoods as they increase in wealth.

It is in this direction that the sector should be looking.

“Even though it makes over half the world’s steel, it still imports steel because it can’t make at the really high-quality end,” said Brooks of China.

“And that’s the end we should be aiming at.”

Manufacturers’ Monthly JUNE 2016 39

WomenIN INDUSTRY Caravan manufacturing enters a new age It may be classified as a niche industry, but that hasn’t stopped the Australian recreational vehicle (RV) manufacturing industry from seeing steady growth over the years. At the forefront of this industry is New Age Caravans, led by CEO Gabby Montagnese. Stephanie Stefanovic talks to Gabby about success in Australian manufacturing and women in the industry.

N

EW Age Caravans is unique in the Australian RV manufacturing industry. Not only has it managed to become the secondlargest Australian RV manufacturer in just the first few years of its operation, but the company is also led by the only female CEO in the industry.

Montagnese was working in the metal framework industry in the early 2000’s when she decided to start her RV company, waiting for just the right time to enter the industry.

“I saw a gap in the market: there were no modern, contemporary or ‘blingy’ caravans out there,” said the CEO. “So when the GFC hit, we started doing some modelling.”

According to Montagnese, the Australian RV industry has always had two problems: it’s highly maledominated and stuck in its ways. So when she started her own business, she made it her mission to challenge this by employing a large number of women at all levels within the company, and producing caravans with unique, innovative designs not available elsewhere on the market.

As a testament to New Age’s success, the company was recognised with a $1 million grant in 2014 to increase production as part of a Federal and Victoria governments and Ford Australia-funded initiative. The company is now producing approximately 1,000 caravans per year, comprising 11 models with 35 possible layouts.

As far as the entire Australian RV manufacturing industry is concerned, there has been steady growth over the years as Australia has shifted towards an ageing demographic. The increased amount of retirees has likely been a factor in the increased sale of RV’s.

For example, according to the

40 JUNE 2016 Manufacturers’ Monthly

cited increased compliance, more uniform processes and increased customer service as upcoming trends in the industry.

Of course, another thing the CEO would like to see is more women in the industry. However, the question remains as to how this can be achieved. Montagnese believes that marketing is the key.

Specifically, marketing the amount of growth and diversity in the industry, as well as the availability of a wide range of jobs not just related to the actual manufacturing process, but also customer-facing and administrative roles.

The lack of female participation doesn’t just apply to the RV manufacturing industry however, there is a distinct lack of female participation across almost all industrial roles. For this reason, awards like Women in Industry have been established to raise the profile of women in these professions by recognising the value they add to their industries. Seeing others making strides in industry could encourage more women to follow in their footsteps, effectively closing the gap between male and female participation in industry.

New Age Caravans, CEO Gabby Montagnese latest ABS Motor Vehicle Census, the growth rate of campervan purchases was 20.2 per cent between 2010 and 2015. Moreover, the Caravan Industry Association of Australia states that the wholesale value of Australian manufactured RV’s is $940 million

annually, with over 70 per cent of RV’s purchased in Australia being locally-made.

When asked about her thoughts on the future of the RV manufacturing industry, Montagnese predicted “growth, and lots of it”. She also

To enter the Women in Industry awards, visit womeninindustry.com.au manmonthly.com.au

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Metalworking Considerations of spring design and specification

by Chris Petts, M.D., Lee Spring Ltd

S

PRING manufacture is a well-established technology, however in recent years manufacturing processes and changes in end use criteria have had significant impacts on the specification of these widely used and essential components. For example, medical, aerospace, food and toy applications demand special load characteristics and treatments, which include ultrasonic cleaning, while RoHS, WEEE and REACH have strongly influenced the types of finishes offered.

Consequently it is worth considering the key factors that need to be understood when engineers specify springs today. The first step of course is to match the application to the basic spring configuration, of which there are many types. The most popular of these are compression, extension, torsion, wave and disc springs. Added to these are conical, swivel hook, battery and drawbar springs.

More recent additions include continuous-length extension springs, light-pressure and plastic composite springs.

To start with Compression Springs, these offer resistance to a compressive force applied axially. They are manufactured by coiling as constant-diameter cylinders where other common forms include conical, tapered, concave and convex configurations, as well as combinations. Most compression springs are manufactured in round wire, which has proven the tests of time for most standard and custom purposes, but square, rectangular, or wire with special sections can be specified if needed.

Generally compression

42 JUNE 2016 Manufacturers’ Monthly

springs are designed to work in a bore or over a rod. For most applications they are supplied as standard with end coils closed and ground square for optimum alignment and reduced solid height. In addition they can also be pre-stressed during manufacture to maintain their length at elevated temperatures.

Crucial to accurate design of compression springs is a good understanding of both the practical and the ultimate limitations of available materials, together with some simple formulae.

Spring theory is normally developed on the basis of spring rate and the formula for this is the most widely used in spring design:

ends is limited only by the imagination of the designer – popular forms include threaded inserts (for precise control of tension), reduced and expanded eyes on the side or in the centre of the spring, extended loops, hooks or eyes at different positions or distances from the body of the spring, and even rectangular or teardropshaped ends. Experience has shown that if possible, machine loops and crossover loop types are the most costeffective solutions.

It has been found that most failures of extension springs occur in the area of the end, so in order to maximise the life of a spring the curve of the wire should be smooth and gradual as it

Operating in the opposite sense to compression springs we can consider Extension Springs, which absorb and store energy by offering resistance to a pulling force.

Various types of formed ends are used to attach this type of spring to the load component.

In this, the variety of

flows in to the end. A minimum bend radius of 1.5 times the wire diameter is recommended, as this will minimise local stresses.

Extension Springs are generally wound with initial tension – this produces an internal force that holds the coils together tightly at rest.

In practice, this means that,

before the spring will extend, a force greater than the initial tension must be applied so as we might expect a spring with high initial tension will exert a high load when subject to a small deflection. If this is combined with a low rate, the spring will exhibit an approximate constant force characteristic, which can be of considerable value in specialist situations.

For example, counterbalances, electrical switchgear and tensioning devices all make use of this high initial tension, low-rate concept, whereas a spring balance requires zero initial tension.

Torsion Springs make use of the principle that the ends are rotated in angular deflection to offer resistance to an externally applied torque. However, the wire itself is subjected to bending stresses rather than torsional stresses - springs of this type are usually close-wound.

Functionally, they reduce in coil diameter while increasing in body length as they are deflected. It is therefore essential to allow for these factors, particularly if they are to be used over a mandrel where clearances must be maintained.

The types of ends for a torsion spring should be subject to careful scrutiny, as should checks of nominal free-angle tolerances relating to application requirements in spring manufacturers’ data.

Interestingly, torsion springs are stressed in bending and not torsion, this means that, as a consequence, they can be stressed higher than compression springs; however they can easily be overstressed. It is therefore important that sufficient residual range is always designed into the spring. This normally means allowing a torque of 15 per cent greater than that actually required.

Disc Springs, sometimes also known as Belleville spring washers, are a very good solution where a compression application requires dealing with high loads in a small space. The conical design of disc springs enables them to support high loads with relatively small deflections and solid heights compared to helical springs.

Often they are used to solve vibration, thermal expansion, relaxation and bolt creep problems.

Battery Springs, impormanmonthly.com.au

Metalworking tant in so many modern hand-held devices, instruments and toys are designed to provide efficient and reliable contacts in most situations where portable power is required - often in self-contained battery compartments. Generally, they are offered in a variety of mounting configurations so as to accommodate the most popular battery sizes.

Continuous-Length extension springs are designed to be cut to length to meet custom load requirements for unusual applications or maintenance operations. Various loops or hooks can be formed on the ends.

If a suitable spring cannot be found from stock, designers will find that most springs can be customdesigned and manufactured.

Most stock springs are manufactured in music wire, stainless steel, oil-tempered MB or chrome silicon steel and perhaps obviously material choice is an essential consideration.

Key factors affecting material choice include: meeting stress conditions, either static or dynamic; the ca-

Spring theory is normally developed on the basis of spring rate and the formula for this is the most widely used in spring design. pability of functioning at a required operating temperature; compatibility with surroundings – e.g. a corrosive environment; and other special

requirements such as conductivity, constant modulus, weight restrictions, magnetic limitations, etc.

Good examples are: music wire

springs which are normally supplied with a zinc plating baked for hydrogen embrittlement relief, while die springs are painted different colours to denote duty.

On the other, hand battery springs are produced in music wire and nickel coated, because most alkaline batteries use nickel-plated containers. Here the use of similar materials removes the possibility of galvanic corrosion and enhances resistance to wear. Additionally, nickel helps to break down the oxide that forms on the surfaces of batteries.

Lastly, it is often forgotten that spring performance is affected by temperature, which should not exceed 120°C for music wire, 260°C for stainless steel and 245°C for chrome silicon steel.

Obviously, getting the load and stress calculations, as well as material choice right will help to avoid this, as will careful allowance for the operating conditions, particularly service temperature and presence of water or solvents.

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Manufacturers’ Monthly JUNE 2016 43

What’sNew Biogas flow meter AMS Instrumentation & Calibration has released the ST98 air/gas flow meter from Fluid Components International (FCI) suitable for measuring dirty landfill gases for co-generation electric power or for flare gas system reporting.

According to the company, the meter can measure biogases accurately with virtually no maintenance over a long life to provide a lowest lifecycle cost instrumentation solution.

The ST98 Flow Meter with its thermal mass sensor provides direct mass flow measurement without the need for additional temperature or pressure sensors or density calculating devices. The meter’s insertion style configuration makes it simple to install in existing piping without cutting the pipe or welding, offering minimal interruption to plant operations.

With its rugged no-moving parts sensor design, the ST98 meter is suitable for service in biogas and natural gas, as

well as numerous other process gases, hydrocarbon mixed or dirty gases and plant compressed air and HVAC systems.

The meter is also suitable for use in other industries such as chemical, electronics, food/beverage, oil/gas, pharmaceutical, pulp/paper, steel and wastewater treatment.

The insertion style ST98 meter’s flow range is from 0.21 to 172NPS in air at standard conditions of 21.2°C and 0°C and 1013,25 bar (a), typical for most gases.

Accuracy is said to be ±1% of reading, plus ±0.5% of full scale, with a repeatability to ±0.5% of reading.

Designed for demanding environments, the rugged ST98’s thermal mass flow sensing element is constructed with two all-welded 316L stainless steel thermowells, which protect two matched platinum precision resistance temperature detectors (RTDs).

One RTD is heated relative to the reference RTD, and the temperature difference between the two is proportional to the process gas mass flow rate.

AMS Instrumentation & Calibration 03 9017 8225 www.ams-ic.com.au

Automated deburring and finishing Laser triangulation sensors with protective housing BESTECH AUSTRALIA’s new protective housing sensors can handle very high ambient temperatures.

Sensors are exposed to adverse conditions in numerous applications, from oil and gas to manufacturing to maintenance settings.

In the past, the sensor’s sensitive electronics could only be used at temperatures of up to 50 °C at a maximum. With the new protective housing SGHF-HT from Bestech Australia, the sensors can now be used at ambient temperatures up to 200 °C. These laser triangulation sensors are mounted to a water cooling plate and operated in the housing within the acceptable temperature range.

Furthermore, the housing offers the possibility to connect a compressed air nozzle, thus, the housing’s protective glass can be kept free from foreign objects.

The SGHF-HT is used in the metalworking industry and other fields where high temperatures prevail.

Bestech Australia 03 9540 5100 www.bestech.com.au

44 JUNE 2016 Manufacturers’ Monthly

CROSS TOOLS is offering some new ways to speed up the old and aggravating problem of deburring.

Nampower brushes with abrasive impregnated nylon bristles remove external burrs and Flex-Hone “bottle brush” type brushes with abrasive tipped filaments beat internal burrs. Both tools can be incorporated in a CNC parts machining regime to greatly improve the efficiency of what has always been a costly and often slow operation.

As a bonus these tools provide a very acceptable end result that can often cut out other finishing processes and by using different grades of abrasive and configuration you also gain broad control over your final surface finish.

Finally, to improve efficiency in manual deburring, you can use these tools in handheld power equipment or special purpose machinery.

Flex-Hones come in a very wide range of diameters from 4 mm up to 1 metre and

the Nampower brushes are available in a number of sizes from 50mm to 150mm Diameter.

Further details are available from the importer.

Cross Tools 1800 025 500 www.crosstools.com.au

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Brought to you by

World-first Australian 3D printing material announced CHEMSON Pacific has announced a claimed world-first 3D printing feedstock, 3D Vinyl.

The material was invented, developed and tested in Australia, and is believed to be the first PVC material for additive manufacturing, according to a statement from the company.

Chemson has also announced a strategic partnership with Functionalize of the US to co-develop conductive, electrostatic dissipative and other specialised formulations of the product.

The announcement late last week from the company lists the material’s key attributes as follows: • UV resistant • Weatherproof • Solvent resistant

• “Group 1” Fire retardant (capable of AS3837 compliance) • Low embodied energy content when compared to incumbent polymerbased filaments • Sustainable footprint – requiring 50 per cent fewer fossil fuel inputs (3DVinyl™ uses abundant natural gas while some incumbents are derived from crude oil.)

• Improved rigidity • Elimination of bottom layer warping and poor bed adhesion • Excellent for generating support structures, which are easily removed Chemson Pacific 02 9620 1575 www.chemson.com

Angle head for tight spots DIMAC TOOLING, a supplier of accessories and workholding solutions for CNC milling and CNC turning machine tools, is the exclusive agent for Eltool products and its range of Titespot Angle Heads.

For over 15 years Titespot Angle Heads have offered a cost effective alternative to EDM and mechanically-driven angle heads, particularly where multi-position

radial machining and/or machining in small bores or cavities is required.

Because spindle rotation is not required to power the angle head, the machine spindle becomes an indexer, allowing multi-position machining with one head and one set-up. The smallest head in the range can machine radially in bores down to 15.9mm in diameter.

Dimac Tooling 03 9561 6155 www.dimac.com.au

Vibration analyser designed for tough settings EMERSON PROCESS MANAGEMENT’S CSI 2140 Machinery Health Analyzer has been certified for Class II, Division 2, Groups (F, G), making it the only portable vibration analyser on the market today that can be used in hazardous combustible dust environments.

The CSI 2140, which is already ATEX and IECEx Zone 2, and Class I, Division 2 Groups (A, B, C, D)

manmonthly.com.au

certified, is approved for use in most industrial hazardous areas in the US and Canada. The CSI 2140 provides an early indication of bearing and gearbox defects before they can lead to machine outages. Its PeakVue signal processing methodology cuts through the complexity of machinery analysis to provide a simple, reliable indication of equipment health.

According to the company, customers can be confident

using the CSI 2140 with most types of equipment in hazardous environments.

Class II, Division 2 certification covers a range of industries from grain processing, food production, chemical manufacturing, recycling facilities, and coal-fired power plants.

Emerson Process Management 1300 55 3051 www.emersonprocess.com.au

Manufacturers’ Monthly JUNE 2016 45

What’sNew

Brought to you by

New 3D printers HP has unveiled its two 3D printing units and begun taking orders, nearly two years after their announcement, with the claim that these can be competitive against traditional manufacturing methods.

The process is compared to binder jetting, with the x arm depositing a layer of thermoplastic powder and a y

arm laying down binding agent.

Infrared lamps then heat the powder, with the fusing agent absorbing this and forming a layer of the part.

“What we are doing here is the first commercial short-run productions systems.”

The two models, named Jet Fusion 3D 3200 and Jet Fusion 3D 4200

announced both have a build volume of 406 cm x 305 cm x 406 cm.

HP www8.hp.com

Hydraulic filters and clogging indicators IN order to prevent any serious personal injury and damage to equipment due to flammable substances, Hydac has upgraded its hydraulic filters and clogging indicators allowing them to be used in potentially explosive atmospheres.

For example, the company has designed its Stat-Free Filter elements to prevent electrostatic charging in the system; also, modified clogging indicators can be supplied with the product with a manufacturer’s declaration and an ATEX specific operating manual.

Following these safety measures, the company has specifically designed filter elements in Stat-Free versions, preventing static charging which can be produced in the filter in certain cases.

As conventional glass fibre or synthetic elements always cause static charging, the company says it’s Stat-Free Filter elements, the filter housing and elements should always be made from electrically conductive materials, with the necessary equalisation of potential (earthing) implemented by the system manufacturer or operator.

Work boots for women

Hydac International 03 9272 8918 www.hydac.com.au

Energy efficient polymer energy chains TREOTHAM supplies a range of igus energy chains that are designed with cost and environmental considerations in mind.

The low maintenance P4 system, originally developed for high-speed container cranes, can travel very long distances up to 800m and carry high additional loads of up to 30kg/m.

They are used for high speeds of up to 10m/s and the autoglide crossbars ensure safe guidance on very long travel distances. The energy chains offer a long service life and are abrasion resistant.

They are suitable for indoor and outdoor crane technology,

46 JUNE 2016 Manufacturers’ Monthly

automated storage and retrieval systems, plant construction, portal robots, materials handling technology, mining and steel works.

The smaller sizes P4.32 and P4.42 in particular are suitable for green machining processes and storage

systems. Compared to sliding friction, rolling friction comes out 75% less, which means they use up to 57% less drive power.

Treotham Automation Pty Ltd www.treotham.com.au 02 9907 1788

SHE WEAR, Australia’s first and only women’s safety footwear company, is keeping women safe in specialised fields and trades by upgrading some of its safety toed footwear.

The only Australian company designing safety footwear in a range of stylish and colourful designs specifically for women in specialist and trade industries, it has redesigned its hiker safety steel-capped boot, which is now lighter, has a water resistant upper and has an SRC slip resistance with the highest rating under Australian and New Zealand standards.

Available in pink or navy blue, the safety boot with steel cap now comes with custom made sole-mate inner sole as standard for greater comfort.

Their range, including the brand new safety sneaker “she moves” with composite cap, and the new fashion non-safety toed “she works” lace up and pull up boot, has been tested to comply with Australian and New Zealand standards and are independently certified by the BSI Group. she wear 07 3607 0521 www.shewear.com.au

manmonthly.com.au

The lastWORD In a connected world it’s all about the network Businesses in all sectors, whether they admit it or not, are fast becoming technology businesses in their own right, writes Chief Technology Officer at Vocus Communications, Luke Mackinnon.

T

HE banking and retail sectors are a great example of this shift in action. What started as bricks-and-mortar focused industries have quickly become ‘clicks-and-motar’; digitally focused sectors with financial and retail institutions introducing mobile apps, contactless payments and cardless cash initiatives to keep up with consumer demand and compete with digital disruptors.

But the growth and use of technology is not just about the customer experience; it’s also about businesses utilising technology to enable a more productive and flexible workplace.

As more and more employees demand flexible hours, communication and collaboration, more businesses are adopting BYOD, cloud, communication technology and the associated storage infrastructure that come with these technologies.While the advancement of technology in business brings many benefits, it also highlights the importance of the role of the IT department and the network connection as the uptake of cloud, unified communication and multimedia technology all mean one thing – increased pressure on the IT infrastructure.

In 2019, the number of devices connected to IP networks will be more than three manmonthly.com.au

times the global population, and this will result in huge increases in network traffic.

Excess pressure placed on existing IT networks can manifest itself in slow speeds and bottlenecks – problems that prevent businesses from using and optimising technology to get the best outcomes and ultimately to respond quickly to market conditions.

Network slowdowns and at worst, downtime, can also come at a significant cost to businesses. Network issues impact an organisation’s professional reputation, customer loyalty and staff morale. In too many cases, businesses address this need after they experience the problem – creating delays and disruption across the entire organisation.

And if a slow network doesn’t affect your business now, it most definitely will in the future. In Australia alone, the Unified Communication (UC) market will see an 8.6 per cent growth between 2011 and 2018, and will be worth over $1 billion by the year 2016.

The explosive demands being placed on modern computer networks are already here.

The challenge for business is that the network is often treated with an ‘out of sight, out of mind’ mentality with corporate leaders not giving much thought to their IT network until it fails.

As a result it often falls

to the CIO’s and CTO’s to make sure the internal IT infrastructure and external offerings are adequately supported and running to their full capacity. However, it’s one job to adopt and promote new technology but a whole other stream of responsibilities to ensure it runs effectively.

So how can CIOs, CTOs and business executives ensure that their networks are strong, resilient and protected into the future?

• Define the network – keep it fresh with annual reviews to make sure routing is optimised • Identify and prioritise

traffic – invest in monitoring that gives visibility of the various types of traffic across the network. Visibility provides opportunity to optimise and minimise chances of bottlenecks.

• Improve the quality of the links that are in use – investigate a move to a Multi-Protocol Label Switching (MPLS) network. MPLS is faster, more reliable, delivers a higher quality of services and offers better data security.

• Redundancy – in situations where data and voice is critical to busi-

ness, investigate physical diversity with network providers.

The importance of an always-on, high availability network is not going to diminish. Indeed, it will only become more critical, as water and power are critical to any business.

The efficiency of an organisation’s network will be absolutely be a point of success or failure in a world of hyper-connected, always on, always available business.

Vocus Communications 02 8999 8999 www.vocus.com.au Manufacturers’ Monthly JUNE 2016 47

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