Manufacturers' Monthly - June 2017

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Editor’s Comment

20 Industry Focus

30 Energy Management

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News@MM

24 Sustainability@MM

34 3D Printing

12 Issues & Insights

26 Safety @MM

36 What’s New

18 Supply Chain & Procurement

28 Software & Systems

38 Last Word

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Over the last few decades, the global defence industry has undergone many changes. Following the end of the Cold War and the economic expansion of China as an economic and political superpower, there has been a steady consolidation of resources within the defence industry.

To this end, the Australian Government has noted the rationalisation of major defence suppliers. As a result, the global defence industry is currently dominated by a few very large defence companies. These defence contractors are mostly based in Europe and North America. However, the Australian defence ministry has

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Manufacturers’ Monthly JUNE 2017 5

Comment

SYED SHAH – Managing Editor, Manufacturer’s Monthly

Show me the money “

T

HE Federal government recently announced slightly over a $100 million in support for advanced manufacturing growth. While to some, this seems a somewhat paltry sum, I like to think of it as a small but positive step forward because the government still recognises the need to innovate the manufacturing sector. In the past few years, the manufacturing sector contributed over $100 billion in gross value to Australia and looks to add a lot more in the years to come.

While visiting the National Manufacturers’ Week 2017 exhibition in Melbourne this past May, I found that there are still some old-fashioned trends need to be addressed if advanced manufacturing is going to make further inroads into the local manufacturing scene. According to some exhibitors, it is not the government that is holding the sector back, but instead some companies who still believe

6 JUNE 2017 Manufacturers’ Monthly

advanced manufacturing leads to the road less travelled.

Despite their misgivings, I believe the drive towards innovation does represent an opportunity for these local manufacturers to re-inject value into their products and offerings. They need to understand that this presents a new opportunity to breathe new life into the concept of competition for Australian manufacturing.

I have noted that the smaller manufacturers have issues with regards to the skills and resources needed to successfully approach advanced manufacturing. To this end, CSIRO have been doing collaborations with many start-ups – which I have seen first-hand during Autodesk’s Manufacturing Leaders of Innovation workshop at CSIRO’s Lindfield facility in New South Wales.

Australia, with its First World capabilities, can do a lot to step up its investment in innovation in manufacturing. All that is left is

the follow through to the larger part of the manufacturing business community.

Australia is ranked 21st in Deloitte’s Global Manufacturing Competitive Index – an improvement from previous years when we ranked lower. This means that local manufacturers are more receptive to embracing advanced manufacturing techniques for the factory floor. In addition, the newer generation of leaders that have taken CEO, CIO and CPO roles have also helped forged the way forward, breaking out of old business habits.

One of the key starting points for Australian manufacturers is understanding what are the sorts of business outcomes advanced manufacturing can offer their companies, and what competitive risks they represent. For most businesses, especially SMEs, it is important to look at some simple questions with regards to what is an endlessly complex area.

The first thing that needs to

be questioned is: does advanced manufacturing offer a way for us to differentiate from the competition, gain access to new products and markets, improve product development activities and reduce costs after adopting it? Following this, it would be a good idea to consult with suppliers and customers to make sure that the appropriate advanced manufacturing techniques are adopted to strengthen and solidify one’s position in existing supply chains.

Lastly, for the vision to have advanced manufacturing embedded in the Australian manufacturing DNA, it takes two hands to clap.

While one hand might be weaker, the other can more than make up for it with robust intent.

The $100 million reason may or may not be enough to move us forward with innovation, but surely the desire to stay relevant and profitable down the road is enough to respond positively.

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News@MM Absorbable heart device recalled due to patient heart attacks A new absorbable heart device has been recalled by manufacturer Abbott Vascular Australia, after research linked it to increased rates of heart attacks and blood clots.

The Absorb Bioresorbable Vascular Scaffold system is a

fully absorbable implanted stent which is used to open blocked coronary arteries.

It is in the process of being removed from the Australian Register of Therapeutic Goods (ARTG), and manufacturer

The device is a fully absorbable implanted stent to open blocked arteries in the heart.

Abbott Vascular is recalling all unused stock.

However, use of the device will continue in select Australian hospitals in a clinical trial setting to monitor implantation technique.

The decision to recall the product and remove it from the Register was based on data that showed an elevated rate of major adverse cardiac events, particularly heart attacks and blood clots, when compared to patients who used an alternate stent, according to the TGA. “Data from Absorb trials around the world demonstrate that when current implantation technique is used, efficacy and safety results are comparable to the gold-standard metallic drug eluting Xience stent, with the added feature of leaving no metal behind once it dissolves,” said a spokesperson from Abbott Vascular.

The spokesperson also noted that the overall rate of stent thrombosis (blood clot) in Australia since Absorb was introduced in 2013 is less than 0.8 per cent; and 0.2 per cent since the introduction of the current implantation technique in 2015.

“These are comparable stent thrombosis rates for metallic drug eluting stents, which are typically from <1 per cent in the first year to 0.5 per cent in the subsequent years.”

A small percentage of patients undergoing coronary angioplasty (the opening of blocked heart arteries) each year in Australia receive Absorb.

The TGA has advised any patients with the stent to seek urgent medical attention if they experience new cardiac symptoms such as irregular heartbeat, chest pain or shortness of breath.

World’s largest pharmaceutical researcher testing Australian-made artificial intelligence Artificial intelligence (AI) will be used to help data-driven sales and decision-making in the pharmaceutical industry.

Pfizer Australia, the world’s largest pharmaceutical researcher which has manufacturing plants in Sydney and Perth, is rolling out digital analyst tools from South Australia-based sales automation specialist Complexica.

In a statement, Pfizer said the software will also help to understand deterministic and nondeterministic factors presented in its business operations.

“We have found that answering complex ‘what-if’ questions is a challenging and time consuming endeavour,” said Pfizer brand 8 JUNE 2017 Manufacturers’ Monthly

manager, Andrew Endicott.

“We believe that Complexica’s What-if Simulator can provide Pfizer Australia with a platform for scenario analysis that will improve our decision making in the future.”

Complexica’s digital analyst engine has been dubbed “Larry”, as a form of “Siri for business”, which uses a combination of algorithms on big data sets to help with datadriven decision making.

“Complexica is delighted to have been selected by one of the world’s largest pharmaceutical companies for the provision of software and services in this very important and challenging area,” Dr Zbigniew Michalewicz, Complexica chief scientist, added.

Pfizer Australia testing artificial-based software to help with the decision making process.

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News@MM “Carbon-free” fuel discovery to make Australia world’s leading renewable energy supplier Multi-million dollar research into separating hydrogen from Australia’s mixed gas streams could present an alternative to the liquefied natural gas (LNG) industry, an energy champion has said.

It is hoped a two-year project led

by Commonwealth Scientific and Industrial Research Organisation (CSIRO) will plug a gap in global energy technology, which could make Australia the world’s number one renewable fuel provider.

Brett Cooper, chairman of Renewable Hydrogen, believes CSIRO’s membrane technology can enable a new, and potentially carbonfree, export that could match the scale of the current LNG industry.

“With this technology, we can now deliver our renewable energy to Japan, Korea and across the Asia-Pacific region in liquid form, as renewable ammonia, and efficiently convert it back to pure hydrogen for cars, buses, power generation and industrial processes,” Cooper said.

“This market didn’t exist 10 years ago – now Australia is positioned to be the number one renewable fuel provider in the world’s fastest growing region.”

CSIRO’s membrane reactor technology is said to link hydrogen production, distribution and delivery in the form of a modular unit that can be used at, or near, re-fuelling stations.

The project recently received $1.7 million from the Science and Industry Endowment Fund (SIEF), which will be matched by CSIRO. Currently, the transportation and storage of hydrogen is complex and relatively expensive, making export commercially challenging.

The membrane will allow hydrogen to be transported in the form of ammonia, which is already being traded globally, and then reconverted back to hydrogen at the point of use.

The thin metal membrane allows hydrogen to pass, while blocking all other gases. In the final stages of development, the device is being

further refined, ready for commercial deployment.

“This is a watershed moment for energy, and we look forward to applying CSIRO innovation to enable this exciting renewably-sourced fuel and energy storage medium a smoother path to market,” said CSIRO’s CEO Dr Larry Marshall.

“I’m delighted to see strong collaboration and the application of CSIRO know-how to what is a key part of the overall energy mix.”

Recent advances in solar and electrochemical technologies means renewable hydrogen production is expected to become competitive with fossil fuel-based production, providing

an opportunity to decarbonise both the energy and transport sectors while creating new export opportunities.

While Australia is a relatively small hydrogen market, the fuel can be distributed to emerging markets in Japan, South Korea and Europe using existing infrastructure.

Both Toyota Australia and Hyundai Australia have affirmed their support of the CSIRO’s hydrogen membrane technology programme.

“Research into making hydrogen more accessible in the future for fuel and energy storage is key to the success of this technology,” said Toyota Australia’s senior executive advisor Bernie O’Connor.

It is hoped that the CSIRO led project will plug a gap in global energy technology.

US defence industry planning Australian onshore expansion Five US primes earmarking Australia for business expansion.

American defence companies have hinted at plans for an onshore expansion in Australia that could inject thousands of manufacturing 10 JUNE 2017 Manufacturers’ Monthly

jobs into the economy.

Defence minister Christopher Pyne has claimed that five US primes are earmarking Australia for

business expansion.

“When I was in Washington I had lunch with five different primes, big US companies, and I just asked them casually what their plans were for the expansion of the Australian workforce, and between those five companies it added up to 5,000 Australian jobs,” Pyne said.

“The rest of the world is looking at the Australian commitment to our military capability and our build-up and recognising that they want to be here as part of that.”

Defence Connect has reported the minister met with Marillyn Hewson, chairman, president and chief executive of key prime Lockheed

Martin, which is based in Canberra and employs more than 750 workers.

Pyne has reportedly said Australia’s $195 billion investment in the defence industry was the driver behind interest from the States.

Canberra-based technology company Electro Optic Systems recently announced a $150-170 million contract to supply remote weapon systems products to US firm Orbital ATK. The report also said Hunterbased advanced engineering and manufacturing company Varley Group is working with American defence avionics company Coherent Technical Services. manmonthly.com.au

News@MM Shipbuilder wants to establish WA manufacturing and export hub German shipbuilder Lurssen hopes to create an Australian manufacturing base to export navy ships around the region.

Lurssen chief Peter Lurssen presented a proposal to partners with Adelaide-based ASC and WA-based Civmec/Forgacs to build 12 offshore patrol vessels.

The company intends to establish the base in Perth, however work on its export projects may also be conducted

by Adelaide-based companies.

Benefits of the export base would include the creation of advanced manufacturing jobs and an economic boost for WA and SA, according to Lurssen.

The company also said its longterm commitment to Australia would sustain the local naval shipbuilding industry and help create jobs for staff after the offshore patrol vessels were completed.

Construction of the offshore patrol vessels is set to begin in Adelaide in 2018.

The hub would see the creation of advanced manufacturing jobs.

Threatened manufacturers promised new Australian gas deal Malcolm Turnbull has promised to halve the price manufacturers pay for gas to ensure affordable supplies across the industry.

The prime minister has noted that 65,000 jobs, which are reliant on gas, are at risk and would remain that way until action was taken.

The government has announced that Resource minister Matt Canavan will have new powers to “block exports” unless there are adequate supplies to meet Australia’s needs.

“It will ensure that the price of gas in Australia is at levels comparable to that in the international market because it is a global commodity,” Mr Turnbull told ABC radio.

“But what we’ve seen is because of these anticipated shortfalls, gas suppliers have been proposing contract prices which are really way too high.

“They are as much as four or five times the price per gigajoule, which is the metric, that are being offered in

the United States.

“It’ll be cheaper than the prices that are being offered now, people are being offered prices of $20 a gigajoule, it should be around half that or less.”

While LNG exporters have contractual obligations they must meet, Turnbull also said that Australia’s free-trade agreements gave the government a right to protect local industry from gas shortages.

“They will not be able to export

gas if that has the consequence of reducing the availability of gas for the Australian market,” Turnbull continued.

“This is a national interest matter, it is a short-term solution to a longer-term problem. The longerterm challenge that we face is we are not producing enough gas on the east coast — that is because of bans on gas exploration and development in Victoria above all and to a lesser extent in NSW.”

PMI indicates further growth in April The Australian manufacturing sector expanded for the seventh consecutive month in April, according to a key index.

The Australian Industry Group Australian Performance of Manufacturing Index (PMI) climbed 1.7 points to 59.2 for the month of April.

Readings above 50 indicate expansion in activity, while those under 50 correlate with contraction.

The index for the largest manufacturing sub-sector, food, beverages and tobacco, increased by 0.5 points to a very strong 60.1 points in April. Food and beverages processors in the Australian PMI noted manmonthly.com.au

stronger Easter sales, but surpluses for some products are holding prices down.

Some also noted a build-up in inventories due to anticipated industrial action. Sales and exports

Manufacturing sector continues to grow steadily with food leading the way.

were particularly strong for food processors during the month.

“The April performance featured strong growth in exports and local sales of food and beverages manufacturing, building materials, specialist machinery and equipment and specialist chemicals” said Ai Group chief executive, Innes Willox.

“Resurgent output and prices in our agricultural and mining sectors are having a positive effect on demand for a range of locally produced manufactured equipment. This surge is occurring despite the closure of the automotive assembly sector and recent disruptions in some locations due to Cyclone Debbie.”

Manufacturers’ Monthly JUNE 2017 11

Issues & INSIGHTS Putting Australian industry on an upward trajectory Following the announcement by Defence Industry minister Christopher Pyne that Australian companies will have an opportunity to capitalise on the international F-35 joint Strike Force Program, Steven Impey takes a closer look at what manufacturers can hope to gain from the government’s massive defence budget.

A

there is a pledge, in writing, to maximise opportunities for competitive businesses and says it will cut the red tape that currently makes it costly for the Australian industry to support Australian defence projects.

Among the most talked about is the F-35 Joint Strike Fighter Program (JSF); a US$1.5 trillion (A$2 trillion) project which incorporates partner countries in building 3,000 fifth-generation fighters designed to perform ground attack and air defence missions.

In March this year, Australia’s minister for defence industry Christopher Pyne declared that there would be opportunity for companies to participate in the production and regional sustainment of the global fleet.

However, some industry experts are still sceptical whether the programme will have such a major impact for small and medium businesses (SMEs) in the Australian supply chain, prompting Manufacturers’ Monthly to delve a little deeper.

In partnership with the

Department of Defence (DoD), it is the job of the Defence Materials Technology Centre (DMTC) in Victoria to identify opportunities in the market and to provide a “commercial pathway” alongside defence contracts such as those connected to F-35.

“It is probably true to say one of the greatest opportunities for manufacturing in Australia is not a particular product line or technology area,” said Dr Mark Hodge, CEO of the DMTC, “but about enhancing collaboration both within supply

picture credit: Lockheed Martin

S billions in federal dollars continue to pour into Australia’s defence industry, leaving a legacy for the Australian workforce must be high on the agenda.

In February last year, the government set out a 10-year budget that promises to grow the current workforce to 62,400 by 2026 while investment is set to rise from $32.4 billion spent in 2016‐17 to $58.7 billion.

As part of the government’s Strategic Partnership with Industry,

F-35A Aust Horiz courtesy of Lockheed Martin

12 JUNE 2017 Manufacturers’ Monthly

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Issues & INSIGHTS chains and between the industry and research sectors.”

There are 20 Australian companies currently signed up to international contracts for the JSF Program, opening up export opportunities for industry partners.

The “ripple effect”

economies,” he said.

“This presents Australian industry with an opportunity to be innovative in driving down the cost of defence capability inputs.”

This means, with production volumes increasing and the F-35 GSS maturing, defence and industry will continue to work closely together to optimise Australian industry participation in the F-35 Progam.

“There are some challenges ahead, which means Australian industry will have to stay internationally competitive by improving efficiency; driving innovation, supporting skills development and maintaining quality,” AVM Gordon continued.

To do this, Australian companies will specifically need to develop associated intellectual property to market worldwide and enhance their design, manufacturing and maintenance capabilities.

picture credit: Lockheed Martin

Meanwhile, more than 50 Australian companies have directly shared in more than $800 million in production contracts since the Howard Government elected to make the F-35 Australia’s fighter jet of choice 15 years ago.

The ripple effect will, it is said, indirectly benefit hundreds more Australian companies up and down the supply chain, with net government spend set to jump to $2 billion by 2023.

It has become apparent, however, that the flight-path towards truly understanding what Australian

companies can offer the defence industry is still in its infancy.

Research carried out by Graeme Dunk, manager of the Australian Business Defence Industry, shows that around five per cent of government (prime) contracts, by value, go out to Australian SMEs – averaging out at roughly $43,000 per contract.

“This analysis is from data on Australian tender, so only shows prime contracts – not subcontracts – and refers to the combined value of acquisition and sustainment contracts placed by Defence to Australianowned companies,” Dunk explained.

Air Vice-Marshal Leigh Gordon heads up the JSF Division within the Capability Acquisition and Sustainment Group (CASG); the DoD’s military equipment purchasing arm.

“Governments globally are looking for their dollars to go further and deliver more for their domestic

The first Australian made vertical tail on the F-35 courtesy of Lockheed Martin.

14 JUNE 2017 Manufacturers’ Monthly

How Australia is already contributing Domestically, Adelaide-based defence contractor BAE Systems Australia is the principle partner in the F-35 JSF Program, producing titanium components for the fighter jet’s vertical and horizontal tails – as well as its wing tips and aft fuselage – at its advanced manufacturing facility in Edinburgh Parks.

It also delivers key systems and electronics on board the aircraft, including the fighter’s electronic warfare suite, active inceptor systems and Vehicle Management Computers (VMC).

With headquarters based in London, the company’s Australian subsidiary holds around 15 per cent of the industrial work on each airframe, having been assigned the role of sustaining the global F-35 fleet in the Southern Pacific region, which is set to create 200 high-technology servicing jobs over 30 years.

Steve Drury, BAE Systems’ director for aerospace in Australia, explained how its contract with Lockheed Martin Aeronautics – the fighter’s designer – is spilling over into other Australian manufacturers’ laps.

“There has been defence parts produced by people on our site for a long time,” Drury said during an interview with Manufacturers’ Monthly.

“Moving onto the F-35 programme, we are machining long, slender titanium wing spars up to three metres long, which requires incredibly advanced machinery.

“Over here, we are telling the Australian Defence Force (ADF) that we can make the most intricate parts and we want to do it in Australia using Australian industry.

“That way, you find more companies looking to invest in the high-tech machinery needed, which, in turn, gives them confidence they are going to see a return [in their investment].”

Among those involved externally, companies such as Adelaide-based precision machining company Axiom Diemould and also Marand, which assembles the F-35’s vertical tail from its factory in Melbourne, are both contributing. manmonthly.com.au

Issues&INSIGHTS “Our use of SMEs in Australia – constructing critical components for the F-35 – has proven to the government that we can do it and that Australians are as good as anybody else at manufacturing these components.”

Reasons to question Australia’s defence legacy There is still scepticism within the ranks, however. According to defence industry research, at most, five per cent of the government’s procurement contracts benefit SMEs overall – with the majority moved offshore.

Jon Bradshaw, who chairs the Sydney Aerospace and Defence Interest Group (SADIG) skills committee, insists more legislation is needed to fuel the fire within Australia’s manufacturing industry.

“Australia is, by any assessment, well inside the top 10 defence purchasers in the world,” he said.

“However, those few SMEs that are successful are that way despite, rather than because of, a lack of local interest.

“In the UK and the States, both countries have strong commitments towards a 25-per-cent SME involvement in all areas of their governments’ procurements.

“Currently in Australia, with no legislative arrangements in place … the lion’s share is going offshore to supply chain companies sourced

picture credit: BAE Systems

BAE Systems is also competing for other contracts in the defence sector.

They include: • Jindalee Operational Radar Network (JORN), to produce an over-the-horizon radar (OTHR) network that can monitor air and sea movement; • Project LAND 400, to deliver armoured fighting vehicles with improved firepower, protection, mobility and communication; • SEA 5000 Future Frigate Program, to deliver the next generation of naval surface combatants with a focus on anti-submarine warfare.

“Our involvement in [the JSF Program] proves that we do, in Australia, have the capability and that the Australian industry will invest in the right opportunities,” Drury continued.

“I have witnessed our current government swing around to making sure that Australian industry is involved in what is a huge defence budget.

“When it comes to other longterm projects – including the Future Frigate Program – while the car industry is reducing and, in fact, disappearing, something has to happen to recapture manufacturing for Australia.

“As intelligent working people, we should be looking at the more hightech areas of manufacturing. Defence is an obvious choice for that.

Contracts are out to tender for delivery of the Project LAND 400 armoured fighting vehicles

through the foreign-owned primes.

“One of the most direct ways the government can encourage and nurture small businesses is through federal contracts. This is legislation we desperately need to kick-start our sovereign capability; to provide critical mass, support for investment and sustainability.

“It will certainly take a great leap of faith to believe that original equipment manufacturers (OEMs) based overseas will really entertain an appetite to underwrite export market development from Australia in competition with their operations.”

By looking at both domestic and export opportunities – within both the defence sector and other

related sectors – programmes such as the JSF are “absolutely critical to clarifying the global competitiveness benchmarks” if SMEs are going to thrive, according to the DMTC. “It’s long been understood that companies from SMEs right through to primes need a diversified base to thrive,” Dr Hodge, of DMTC, continued.

“The Australian Government’s commitment to the defence sector is certainly very welcome and it’s now a case of the rubber hitting the road as all of the promises in the suit of White Paper, Industry Policy Statement and the Integrated Investment Program start to come to fruition.”

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Supply CHAIN & PROCUREMENT More pallets, less film Tim Salisbury, managing director, Omni Group, explains to Manufacturers’ Monthly about their award winning Omni Pallet Wrapping Solution and how it saves their clients money while reducing environmental impact.

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OR over 25 years, AAA Packaging Supplies, now part of the Omni Group, has been supplying warehouse packaging consumables and machinery. Tim Salisbury, managing director for the Omni Group attributes that success from the product innovation and customisation, ensuring what they refer to as “Perfect Packaging Solutions” can be are tailored to their clients’ needs.

The Omni Pallet Wrapping Machines received the PIDA Innovative Sustainable Packaging Award, nominated AIP and APPMA at the Auspack show in Sydney earlier this year.

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According to Salisbury, engineering these elements together enables this high-performance film to be stretched to over 400 per cent. As a result, the amount of film required per pallet wrapped is reduced by over 50 per cent.

the Omni pallet wrapping machines and how they can positively impact on warehouse operations.

• Save over 20 per cent on pallet wrapping costs • Reduce film usage by over 50 per cent therefore saves waste disposal costs • Reduce the OH&S risk of hand wrapping pallets • Increase warehouse productivity and reduce labour costs • Improve pallet load containment and reduce load damage “When purchasing a pallet wrapping machine, many customers make the mistake of to look the cheapest wrapper on the market.

Buying a pallet wrapper can be likened to buying a car “For instance, you need to consider what is the film efficiency

is. Like with a car, you would be concerned with fuel efficiency, so you will be asking things like ‘how many pallets can be wrapped with one roll of stretch film?’”

Reduction of stretch film usage According to Salisbury, the reduction of stretch film is the main advantage of their Omni Pallet Wrapping Solution. Significant reduction of film usage means saving our clients on stretch wrap costs as well as waste disposal costs.

“Just one of clients with our Omni Pallet Wrapping Solution saves over 126 tons of film per year. Based on a 200kg capacity, that equates to 630 skip bins of stretch wrap less in land fill per year,” said Salisbury.

“As a result of this significant film reduction, the company saves

over $100,000 per year on stretch wrapping costs” Salisbury added.

When asked how much automation was present in packaging machines these days, Salisbury mentioned that the Omni Pallet Wrapping Machine range includes different features to suit different factory demands and pallet load types.

“We can customise fully automatic machines to be integrated into automatic conveyed packaging lines. These inline pallet wrapping systems are popular for high volume manufacturing plants,” said Salisbury.

The competitive advantage The Omni Pallet Wrappers are engineered and manufactured in Italy with advanced technology and electronics.

“These machines stand light

Making the right purchase Manufacturers’ Monthly learnt from Salisbury that buying a pallet wrapping machine is often seen as a luxury purchase – a want rather than a need. “The truth is that a machine will pay itself off as a result of significant reduction in stretch film usage,” said Salisbury. He continued to explain the other advantages of 18 JUNE 2017 Manufacturers’ Monthly

Besides looking after cost concerns of customers, the environmental aspects are taken into consideration as well.

manmonthly.com.au

SupplyCHAIN & PROCUREMENT years ahead of any other and includes the most innovative programming options therefore recognised as ‘the most innovative pallet wrapper of the last decade’,” Salisbury proudly says.

“Our achievements have been recognised with us winning the 2015 APPMA Industry Excellence Award, the 2015 Imported Equipment Excellence Award by the Australian Packaging & Processing Machinery Association and the Taropack Gold Medal Packaging Technology Award.

In addition, these pallet wrapping machines were awarded at the International Trade Fair of Packaging Technology and Labels in Poland 2014 and most recently at PIDA 2017 winning the Innovative Sustainable Packaging category.”

Product innovation and customisation is key Salisbury says that the goal of their “Perfect Pallet Wrapping Solution” is to use the minimum grams of stretch film05.04.17 to wrap a09:23 palletSeite while Projekt1 1

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maintaining optimum puncture resistance and load containment to maximise the reduction of film usage and expenditure. While tailoring the “Perfect Pallet Wrapping Solution” to each client’s requirements, engineers conduct a “Load Cell Test” determine the most appropriate film type and machine settings.

The results of the load containment and puncture resistant test probes are analysed and inserted into a spreadsheet report which calculates film reduction amount and total cost savings. For each film type that is tested, the grams of film used to wrap the pallet is weighed to determine the cost and usage for each stretch wrap type. This analysis test is referred to as a “film cut and weigh’”.

“Moving forward, we are continuing to explore and develop ways further improve all of our packaging solutions. Product innovation has been the key to our success so we will continue down this road,” Salisbury concluded.

While tailoring the ‘Perfect Pallet Wrapping Solution’ to each client’s requirements, engineers conduct a “Load Cell Test” determine the most appropriate film type and machine settings.

Manufacturers’ Monthly JUNE 2017 19

Industry FOCUS Smart lessons from America While the number of manufacturing courses available to Australian-based students has steadily declined over the past six years, Steven Impey takes an in-depth look at how America is influencing the future of Australia’s education system.

W

HEN deciding what future generations of manufacturers should be learning in school, at TAFE, or even inside the halls of some of Australia’s leading universities, it used to be much more black and white.

The consensus once upon a time was that apprentices of the trade underwent practical training on factory floors while the white-collar academics focused on writing papers that would define the future of the industry.

With modern-day twists – where technological evolutions are influencing the Fourth Industrial Revolution (Industry 4.0) – a new wave of visionaries are being sought; an integrated generation ready to ride a change of course and invent a new destination.

“There’s a drive in Australia for

Partnerships between schools and industry provide opportunities for students

20 JUNE 2017 Manufacturers’ Monthly

more collaboration between research institutions and industries along two fronts,” Mark Goodsell, head of The Australian Industry (Ai) Group’s NSW branch, told Manufacturers’ Monthly.

“One is along the lines of technology and product development – blue-sky-to-commercial ideas – while the other is around knowledgetransfer between companies and researchers for purposes of training, education and skill development.

Benefits of integrated learning “By blending engineering and academics, we are seeing more people who can move seamlessly between industries.

“You are now starting to see more universities become more integrated with companies as we have seen in Europe, where there are already industry-based universities working

on projects directly.

“We have a long way to go in Australia while there are still head winds of culture and traditions to push through. While the academics are very useful collaborators, you do get a sense that they are doing it for different reasons.”

Some universities voiced their concerns about a government decision last month [April] to streamline the number of occupations which foreign nationals can apply for temporary employment.

As the Turnbull Government tightens its borders in an attempt to put “Australian workers first” – much like President Donald Trump’s policy to “buy American, hire American” – it is an educational system created under the Obama Administration which is being trialled this side of the Pacific Ocean.

As of last year, around 100 students across Australia were selected to participate in an American-born model which the Federal Government has invested $5.1 million to pilot.

First tested in Brooklyn, New York, P-Tech (also known as Pathways in Technology Early College High School) took shape in 2011 and has since expanded internationally.

Its purpose is to establish longterm partnerships between industry, schools and tertiary education providers and does so by enabling businesses to play an active role in the learning and career development of their future workforce.

Nick Wyman, CEO of the Skilling Australia Foundation, was appointed by the Federal Government to adapt and rollout the same P-Tech programme, which was originally set up in the U.S. by the International Business Machines (IBM) Corporation.

“Back in 2013, while undertaking a Churchill Fellowship, I went looking for fresh approaches to engaging young people in skilled careers,” Wyman explained during an interview with Manufacturers’ Monthly.

“I found many in the UK, Germany, and in parts of the United States.

Among the most promising I encountered was P-Tech.”

This year, five new P-Tech schools commenced in New South Wales, South Australia and Western Australia, with more to come in Queensland and Tasmania next year.

So far, more than 25 employers across Australia have committed to the P-Tech partnership programme.

“I was shocked at how many young people [in Australia] front up for an interview with no idea about what it is they want to do or what opportunities are available to them,” Wyman continued.

“I have to say that parents are also cautious about sending their children manmonthly.com.au

Industry FOCUS near anything that sounds like ‘manufacturing’ – which doesn’t have anything to do with the position the car industry is in, but rather a genuine concern around the media.

“I think manufacturers have since realised that the government isn’t going to solve their skills shortages and that they are going to have to engage at a deeper level.”

By turning more towards hightech production – the likes seen in Germany and Switzerland – Wyman also believes manufacturers in Australia could also see more opportunities to commercialise new ideas.

“There’s no question young people have opportunities to learn, whether that is working for Price Waterhouse Cooper in augmented reality or artificial intelligence at IBM,” he continued.

“It’s about pulling these kids in and really capturing their imagination.”

Manufacturing student numbers in decline In Australia, only Registered Training Organisations (RTOs) can deliver nationally recognised courses and accredited Australian Qualifications Framework (AQF) qualifications.

Since 2011, the number of RTOs that provide at least one manufacturing-related vocational

education and training (VET) course has taken a hit with 697 registered this year compared to 770 six years ago.

The number of students enrolled in manufacturing courses is also sliding, according to government statistics, with 123,700 signed up in 2015 versus 139,800 in 2014.

These figures include some unaccredited VET courses that were government-funded and some non-vocational (e.g. university) level accredited training delivered by dualsector providers.

Manufacturing-related study encompasses anything from food processing to furnishing; aero-skills to minerals. Data for enrollment in 2016 will be released later this year.

The government does continue to subsidise students studying in the industry, albeit these numbers have also fallen dramatically since a spike in 2012 and 2013, which saw more than 100,000 students financed each year.

As of 2015, the number dropped to 81,200 – although that is more than 5,000 better off than 10 years earlier.

“Apprenticeships are the flagship of VET and are a critical part of our plan to build a highly-skilled and qualified workforce,” said Karen Andrews, assistant minister for Vocational Education and Skills.

More than 25 major employers across Australia have committed to be part of local P-TECH partnerships

Number of RTOs that had at least a single manufacturing-related training package qualification on scope for each year, 2011-2017.

2011

2012

2013

2014

2015

2016

2017

770

792

770

775

768

762

697

Total VET students studying manufacturing-related VET qualifications 2014-2015.

Total

2014

2015

139,800

123,700

Government-subsidised students studying manufacturing-related VET qualifications 2006-2015.

Total

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

75,800

77,800

77,600

75,300

81,500

95,300

105,300

103,900

91,600

81,200

Source: National VET Provider Collection: Government-funded students and courses 2003-2015 (Students)

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Manufacturers’ Monthly JUNE 2017 21

Industry FOCUS

The Factory of the Future, housed in the Advanced Manufacturing and Design Centre at Swinburne University “They provide on-the-job learning and have exceptional employment rates for apprentices who complete training [while] advanced manufacturing offers unique opportunities for Australia in both domestic and international markets.”

As part of the P-Tech programme, every state will be incorporated with seven schools now up and running from a target of 14 P-Tech schools.

Its goal is to provide educators with a range of examples of how to work in partnership with industry, and engage and inspire students to pursue STEM education and employment pathways.

federal government funding went towards SMLC’s multi-state network, which collaborates two-thirds of America’s largest manufacturing companies and eight of the nation’s 10 highest-ranked research and engineering universities.

“Our institutes cannot make a difference unless their academics are all part of the process; for technology development, yes, but critically for workforce development,” Swink

explained during an interview with Manufacturers’ Monthly.

“You can’t have one university developing smart manufacturing technology and another university doing something completely different.

“Of our members, 70 are universities. They are the ones who develop the curriculum and are the academics our companies are looking to, to make sure students are covering the skills we want our folks to have.”

According to an Ai Group survey, there is “some dissatisfaction” with the skills of VET gradates within the industry, including problem solving and self-management, as well as basic literacy and numeracy.

The data collated shows that, while more than half of employers want to maintain their current training expenditure, 38 per cent intend to increase it.

In light of problem areas, the verdict is that stronger links are needed between schools, VET sector and higher education to tackle a skills shortage.

Professor Bronwyn Fox leads the Manufacturing Futures Research Institute at the Swinburne University of Technology, in Melbourne, where a new Bachelor of Engineering Practice (Honours) will be offered next year.

In March, she attended the G20’s

Digitising Manufacturing Conference in Berlin on behalf of Professor Aleksandar Subic, the university’s deputy vice-chancellor – who also sits on the Prime Minister’s Industry 4.0 Taskforce – to discuss the opportunities and challenges in shaping the future of digital manufacturing.

“For me, it was a phenomenal experience to see how they are working in countries like Germany and Austria,” Prof Fox told Manufacturers’ Monthly. “I haven’t seen software on the factory floor used to that extent before.

“It is a huge skill we are going to need in the future. We are aware of what they are doing in Europe and what we need to do to meet our needs in Australia.”

To integrate the industry into global supply chains, Prof Fox also explained how the needs of the employer are changing and how graduates require the skills to make a difference as manufacturing becomes more digitalised.

“We are going to have to further the relationship between mechanical and mechatronic engineering and create an integrated factory floor,” she continued, “where our students work within the industry itself on an integrated level.”

Looking to America In the US, colleges also have an input in the sustainability of national industry amid efforts to reduce its carbon footprint and are doing so by working mouth to jowl with industry leaders alongside government policy.

Among the keynote speakers at last month’s 2xEP Energy Productivity Summit held at the Australian Maritime Museum in Sydney, Denise Swink, CEO for the Smart Manufacturing Leadership Coalition (SMLC), gave an insight into the steps being taking in the States.

Since it’s inception in 2012, US$600 million (A$796.2 million) in

22 JUNE 2017 Manufacturers’ Monthly

The P-TECH pilot is funded by the Australian Government

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Sustainability@MM Clearing up concerns about energy from waste A NSW waste management company is confident it will receive approval to build the world’s largest energy from waste (EfW) facility, despite backlash from the community and local government. Stephanie Stefanovic writes.

The proposed EfW facility in Eastern Creek, NSW

U

NTIL recently, waste that was too small, too mixed or too dirty could not be recycled and was sent to landfill. Here it would sit and decompose, leaking toxic gases into the soil, groundwater and air. While there is still an excessive amount of waste being sent to landfill, waste management companies have now found a way to unlock energy from residue waste, with more EfW plants being built, and increased sophistication in the technologies they use.

In Australia, NSW waste management company Dial-a-Dump Industries is in the final stages of seeking approval to build the Eastern Creek Energy from Waste facility, which will be located next to its Genesis recycling plant. The proposed 24 JUNE 2017 Manufacturers’ Monthly

facility will generate electrical power from unsalvageable and uneconomic residue waste which would otherwise be sent to landfill. It will be a lowcarbon electricity generation facility, and the world’s largest EfW facility.

The proposal for the Eastern Creek facility includes: • The construction and operation of an EfW facility • Thermal treatment of up to one million tonnes of waste per year • A boiler house, steam driven turbines and air emissions stacks • An electrically powered feed-stock conveyor from the existing Genesis waste management facility

The process Dial-a-Dump (operating under The Next Generation), will be utilising

residue waste from construction and demolition, which will be delivered by truck, as well as through an under-road conveyor that can directly transfer material from its Genesis material processing facility next-door.

First, the residue waste will be weighed, then constantly mixed and fed by conveyors to combustion chambers, where it will be burned at high temperatures with heat used to form steam. Typically, it will burn at 850 deg C for at least two seconds.

This will create enough heat to produce power by turning water into super-heated steam, which will drive a high-pressure turbine to power an electric generator.

Once the steam does its job turning the turbines, it will be condensed and returned to the boiler. Metal and

ash are all that will be left from this process. These materials will be moved away on conveyor belts, with the metal being separated for recycling and the ash being taken away for analysis and disposal.

The hot gases from the combustion process will be treated to remove any pollutants. Lime will be used to absorb acid gases, activated carbon will be used to fix combustion by-products, and ammonia will be used to remove oxides of nitrogen. Advanced filtering systems will also capture the ash in small particles, which would otherwise go up the chimney.

Environmental impact According to Dial-a-Dump, the plant will have “all the environmental safeguards built into it from the manmonthly.com.au

Sustainability@MM beginning … the safeguards which are absent from the old coal-fired power stations and even from the existing motorway tunnels here in Sydney”.

“There is not one solution to waste,” said the company’s chief executive, Ian Malouf.

“We will use residue building and demolition wastes that would otherwise be landfilled to generate electricity for 200,000 homes across Sydney, providing a secure, long-term supplement to western Sydney’s energy demands.”

Dial-a-Dump is also interested in exporting heat to nearby customers in the Eastern Creek Industrial Estate for space heating, cooling or hot water, with each turbine constructed to export up to 20MW of heat.

“It is a regrettable that a small group is running a scare campaign about what they say are the potential impacts of the facility,” said Malouf.

“Their claims are just wrong.”

Members of the community and local government have cited concerns about the facility’s potential impact on human and environmental health.

“This will be the world’s largest incinerator, burning 1.3 tonnes of waste, and could burn the entire

waste of Sydney’s basin in a day,” said Blacktown Mayor Stephen Bali, following a trip to inspect similar facilities in the UK last year.

“Once you turn it on, you need to keep feeding the beast.”

Last year, Blacktown Council made a submission to the Planning Department, stating that the plant could pose a “significant risk to health for the people of greater western Sydney.”

“The predicted impacts on ozone formation in the Sydney basin are of concern,” said the report.

It also said the “inappropriate” plan failed to properly assess potential chemical or cancer risks.

One year later, the council is still against the proposal. Air quality, human health, noise, and drainage and plume rise are some of the issues raised in the council’s latest draft report.

“In western Sydney, we have the highest rate of cardiovascular and respiratory problems in Australia, so we’re concerned that in the long term we ensure we don’t make it worse,” said Deputy Mayor Tony Bleasdale.

“This is a major, major development … we need to make sure we get it right.”

Dial-a-Dump has countered

Dial-a-Dump is interested in exporting heat to nearby customers in the Eastern Creek Industrial Estate for space heating, cooling or hot water, with each turbine constructed to export up to export up to 20MW of heat. these claims however, stating that the facility will be built to the latest European and Australian engineering and environmental standards. This would include technology that captures any particulate matter and absorbs heavy metals and dioxins, while cleaning any gases before they reach the atmosphere.

The company added that this would mean outputs would be below the limits set out by the NSW Environmental Protection Agency (EPA) and the very strict European directives, and in many cases would not even be detectable. The facility’s pollution controls will also be monitored by the EPA 24 hours a day, seven days a week.

“Emissions from the facility will have less impact than a person

holding a burning sparkler at a birthday party, emitting less chloride, dust and nitrous oxides,” said Malouf.

He emphasised that “by converting residual waste into power, the facility will prevent the release of three million tonnes of greenhouse gases into the atmosphere and divert over one million tonnes of waste from landfill each year”.

The facility will not have cooling towers, and will not rely on being near a river, lake or ocean. And unlike other forms of electricity generation, it will not require stockpiles of coal or create “unsightly slag heaps of residue”.

The EfW project is expected to create 500 construction jobs each year while it is being built, and a total of 55 staff will be employed once the facility is operational.

Dial-a-Dump has found an environmentally sustainable way to turn construction and demolition waste into energy for use in Western Sydney

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Manufacturers’ Monthly JUNE 2017 25

Safety @MM Putting worker safety first: why ergonomics matters Manufacturers’ Monthly spoke with Ted Dohrmann, managing director at Dohrmann Consulting based in Melbourne, about the importance of ergonomics in a potentially hazardous workplace in an industrial setting.

E

RGONOMICS is the science of fitting work to people.

Humanising the design of each industrial process wherever humans interact with it needs to be a critical part of every organisation’s safety system.

It can, and does, make a huge difference to bottom-line productivity.

Crossing from one industry to another, a company’s ergonomics needs may differ from its competitors’, depending on their system and workforce. The goals, however, are always the same: to prevent injury in the workplace, to enhance comfort and to increase productivity.

Simply put, ergonomics means tweaking the current operation to get the best out of its operators and staff – using their physical and mental capabilities, and avoiding natural human limitations.

For example, humans are very good at picking patterns, but less so at repeated, forceful effort. The job design should reflect this.

The Australian Work Health and Safety Strategy 2012–2022 has stated that it plans to reduce the percentage of serious injuries by 30 per cent and fatalities by 20 per cent by the year 2022.

According to the paper, it is estimated that more 2,000 workers die from a work-related illness each year.

It explains that all workers, regardless of their occupation or how they are engaged, have the right to a healthy and safe working environment.

In 2009–10, 640,000 workers reported experiencing a workrelated injury or illness while, in the same year, 303,000 workers were compensated for an injury or illness – prompting change.

Dohrmann Consulting – working out of its offices in Flemington, Victoria since 1977 – is an expert in this field.

26 JUNE 2017 Manufacturers’ Monthly

Ergonomics helps prevent injury in the workplace as well as increase productivity

They help businesses prevent injury, by designing more productive, user friendly systems.

Their experience lends specifically to workplace safety – for example, by injecting complying design into office spaces - and also with legal obligations.

While they work across most sectors, they work most closely with companies in retail, transport, health care and manufacturing.

Ted Dohrmann is the company’s managing director. A professional mechanical engineer, he owns additional graduate qualifications in ergonomics. He consults widely to industry, and is also an experienced expert witness, experience which he and his professional team apply to the firm’s industrial safety improvement projects.

Speaking with Manufacturers’ Monthly, he discussed the challenges businesses face in this area and the relationship workplace safety shares with ergonomics, from workforce training to risk management.

“As humans shift into more overseeing and control roles,

ergonomics will continue to play a big role itself,” Dohrmann said. “For example, we have been often involved with the design of large and small control rooms and consoles for many years, and we expect this to increase.

“Likewise, designing displays, information systems and software to be error-free and productive takes ergonomic finesse. Designing for the user minimises error, and also keeps the operator safe and productive.

Humanising a task, product or process really is a no-brainer.

“Firstly, the scope of the human engagement in each step of the process needs to be identified.

Wherever your people are required to do something physical, or make a decision, skilled ergonomics design will optimise the job. The information flow, control methods and physical aspects must all be considered.

“If the process demands too much – whether mentally or physically – then we look to adjust the process so that it can be done safely, comfortably and more productively.”

Consider a packer standing at the end of a production line, lifting boxes

of product from the end of a roller conveyor onto a nearby pallet, for a full shift at a time.

An ergonomics evaluation will focus on weights, postures, the repetition rate and duration times involved. Skilled analysis (often software assisted) may find a risk of back and shoulder injury, or unnecessary fatigue.

Practical options to reduce this risk may include shrinking the product weight, if possible, providing an adjustable height pallet turntable, or implementing a task rotation plan that provides adequate respite.

By automating that part of the packing process, one should also ensure staff are trained in safe work procedures.

In summary, an effective ergonomics programme will both find and fix safety problems.

Whether a company is looking for a complete analysis of their workplace, or if they only need attention in a specific area, Dohrmann’s expert ergonomists and engineers want to help. They study lighting, air movement, thermal factors, trips slips and fall risks, guarding, postures, manmonthly.com.au

Safety@MM traffic, warehousing and more.

“Ergonomics is a multi-faceted discipline that addresses work from floor to ceiling,” Dohrmann said. “Our consultants are highly experienced and work with the people who actually do the work (and manage it) to understand and implement the highest safety standards throughout the workplace.”

Ergonomics had its beginnings in the early 1900s in the industrial sector.

The first ergonomists became interested in how long workers took to complete individual tasks, with a view to standardising those tasks, and gaining efficiencies.

These “time and motion” studies became popular, Dohrmann explained, and led to the role of humans in industrial systems becoming better understood.

“It became apparent that improvements in workplace design could be made by understanding humans better” he said. “The design of work, generally, brought both productivity and safety benefits. This core understanding of the benefits of user-centred design remains the focus for ergonomists today.

“As ergonomics consultants, we examine process details end to end, and ensure that at every human contact point the task lies inside their true capabilities and limitations.

“The user-friendly systems and processes that result will lift safety, improve comfort and drive productivity.”

Applying proven ergonomics methodologies to the design and

Dohrmann Consulting managing director, Ted Dohrmann

manmonthly.com.au

assessment of your workplace – from the front office to the factory floor – invariably results in improved safety across the board.

The reason is that it fundamentally involves a focus on the human in the system – from the receptionist working at a screen, keyboard and phone to a maintenance technician overhauling a complex machine in an awkward position – and considers how the whole person can best do their work safely.

One obvious area where ergonomics can reduce the risk of serious injuries is in strain injury reduction.

Strain injury has many causes.

Ergonomists can help businesses identify and understand those risk factors, and devise suitable strategies to control them.

“We work for clients Australia-wide out of our Melbourne office, deploying members of our full-time professional team or from our wide network of associates across the capital cities,” Dohrmann added. “Our work has taken as across Asia and we’re currently working across the Tasman to New Zealand.”

Dohrmann provides various services to industrial clients. They include: • Workplace Ergonomics Assessments.

• Hazardous Manual Task Risk Management.

• Hazardous Manual Task Risk Management Training.

• Product Design and Assessment – applying the latest ergonomics data to design processes.

• Workplace design – ensuring work processes and layout are fully compliant with laws, codes and Worksafe guidelines.

• Training – from basic ergonomics to advanced topics, Dohrmanns trains, develops and supports your people as they help your business improve.

• Specialised services – control room design, Green Star ergonomics credit, National Construction Code Alternative Solutions - their expert ergonomists and engineers have you covered.

“A substantial part of our work involves investigating incidents and injuries which have occurred in factories and other industrial places, and providing expert opinion in court on liability,” Dohrmann said.

“We use this special knowledge

to assist with advice we give clients on compliance, task design, process adjustments, environmental audits, product design, equipment selection and layout, and training.

“Whether you’re a large operation with multiple sites or a small business with just a couple of staff, it can be complex, confusing and time consuming to ensure compliance with workplace safety

laws, standards and regulations.

“Through our unique exposure to this work, we have developed a keen sense of what is ‘reasonably practicable’, and we bring this knowledge to any project we undertake with a client.

“As a starting point, the advice we give is always framed to protect the employer from legal problems, as well as protecting staff from injury.”

Top seven benefits businesses can expect from investing in ergonomics: 1. Happier employees Ergonomics promotes comfort and usability. An employee who doesn’t have to fight with equipment and environment to be comfortable is a much happier employee who can work longer. Happier employees = happier workplace. It’s win-win, really.

2. Reduced time spent in training Equipment: well-considered, ergonomic design will be user-friendly and intuitive. This reduces training time required, easing the burden of hiring new employees or buying new equipment. It also means employees are less likely to lose proficiency if the equipment is not used often.

3. Increased efficiency and productivity Ergonomics reduces error and effort, saving you and your employees time – and not only when it comes to equipment. Good ergonomics, when applied to systems, processes and workstations, will improve work flow, save time and improve productivity 4. Reduced fatigue Increased comfort, adopting user friendly equipment and improved work systems combine to reduce mental and physical fatigue. This improves performance and reduces injury risk.

5. Increased accuracy Employees who are more comfortable, productive and alert are more accurate. Ergonomics brings benefits across the entirety of operations – well beyond the set-up of your workstations or keyboard positioning. Increased accuracy reduces the cost of error.

6. Reduced likelihood of injury Ergonomics is centred around how people interact with devices, products and systems. If these things are designed taking human factors into account, the incidence of injury will decrease.

7. Lower costs The above factors combine to decrease costs for the organisation.

Regardless of the initial outlay and setup for tools and systems, the overall cost in terms of time, productivity, injury compensation / downtime and employee error is significantly reduced as good ergonomic products and practices are implemented across a business.

Manufacturers’ Monthly JUNE 2017 27

Software & SYSTEMS Comeback for carbon A scalable distributed control system (DCS) solution is helping an Australian joint venture develop and commercialise a new carbon management technology aimed at reducing global CO2 emissions. Industrial technology company, Siemens AG, shares the story with Manufacturers’ Monthly.

M

INERAL Carbonation International (MCi) is an Australia-based start-up whose mission is to demonstrate the technical and economic viability of mineral carbonation as a sustainable industrial solution for carbon capture, storage, and utilisation (CCSU). The joint venture is owned by three shareholders: GreenMag Group, Orica, the world’s largest provider of commercial explosives and innovative blasting systems to the mining and civil engineering markets, and the University of Newcastle, Australia (UON).

MCi is adopting a fully holistic

approach to CCSU – the world’s first – via mineral carbonation by examining the complete chain of operations from feedstock to final product. It all started more than seven years ago, when Canberrabased GreenMag Group teamed up with the UON to investigate the feasibility of current and future technologies to sequester CO2 emissions. Concurrently, Orica researchers had been working in the same field and the three parties merged to form MCi in 2013. The joint venture won a major research grant funded by the Commonwealth and New South Wales (NSW)

governments and Orica.

The company’s approach involves creating and licensing intellectual property that enables captured CO2 to be used as a raw material for the production of green construction products such as cement and plasterboard, rather than treating it as dangerous waste. From the outset, MCi envisaged creating value by turning captured CO2 into useful products in order to offset the cost of the transformation process. The technology has the potential to play a key role in closing the carbon loop by providing a means for the safe and permanent disposal of

carbon emissions from fossil fuel power stations and other industrial facilities such as fertiliser and cement manufacturing plants.

First of its kind In 2013 MCi set out to establish a world-first CO2 mineral carbonation research pilot plant at UON. The pilot plant uses captured CO2 from Orica’s Kooragang Island ammonium nitrate production facility in Newcastle to produce carbonate solid and amorphous silicon.

Ammonium nitrate is a common ingredient in fertiliser products used in agricultural applications and also

From the outset, MCi envisaged creating value by turning captured CO2 into useful products in order to offset the cost of the transformation process.

28 JUNE 2017 Manufacturers’ Monthly

manmonthly.com.au

Software&SYSTEMS the major component of commercial explosives used throughout the mining and civil engineering industries.

The need for a scalable DCS In addition to conducting research to determine if existing mineral carbonation processes could be scaled to an industrial level, the purpose of the pilot plant is to develop new CCSU technologies that can be economically viable on a larger scale.

The plant was developed in two stages, with the first stage consisting of a batch process and the second of a semi-continuous process. The batch plant is used to validate existing mineral carbonation technologies on a larger scale and to provide carbonate products for further analysis within construction products – while the semi-continuous plant provides valuable experimental data to form the design basis of a demonstration plant.

In order to facilitate high levels of automation and process safety, the MCi team identified Siemens’ range of industrial automation Systems as a suitable solution for the required The plant was developed in two stages, with the first stage consisting of a batch process and the second of a semi-continuous process.

manmonthly.com.au

distributed control system (DCS).

Simatic PCS 7 equipment was selected by the project team due to its proven track record and extensive use in the chemical industry both in Australia and overseas, further supported by the experience from Orica, which was already using the same PCS 7 technology in one of its ammonium nitrate plants in Botang, Indonesia.

The scalable architecture and powerful engineering tools of the Siemens DCS solution address the wider needs of a full-scale plant with respect to engineering, operational, and maintenance requirements. However, it also provides MCi with the flexibility to scale the base technology for the process control system in the future.

The sales and engineering team of Siemens Australia assisted with the selection of suitable control hardware and the implementation of the developed control philosophy for both stages of the pilot plant. The DCS hardware comprised two Simatic PCS 7 box systems with PCS 7 V8.1 SP1 OS runtime to allow independent operation and control. Also included were 11 Sinamics

G120 VFD controllers to automate various vessel agitators and the operation of a high-intensity grinding mill.

“The Simatic PCS 7 system allows us to closely monitor and control all steps of our reaction and gives us the ability to record all process data required for detailed analysis of the energy requirements and overall process performance,” says MCi program manager Jan-Dirk Prigge.

A bright future The knowledge gained from the pilot plant will help determine the financial and technological feasibility of industrial-scale implementations of mineral carbonation processes across the globe. The results achieved so far indicate that process conditions can be optimised further to potentially make mineral carbonation an economically viable way to reduce industrial CO2 emissions, slow global warming, and ensure a cleaner energy future. For commercial explosives producers such as Orica, this may also provide a way to reduce CO2 emissions and achieve more sustainable production.

Process conditions can be optimised further to potentially make mineral carbonation economically viable and sustainable.

Manufacturers’ Monthly JUNE 2017 29

Energy MANAGMENT Renewables light the way to success in manufacturing In light of rising energy prices, questionable security and ever-changing policies, some manufacturers are turning to renewables to ensure reliable production, writes Stephanie Stefanovic.

A

S energy prices continue to soar, manufacturers are increasingly being pushed out of Australia. The Federal Government seems to believe reducing wholesale gas prices is the answer, with Prime Minister Malcolm Turnbull pushing for more local gas supply and less exports.

However, many manufacturers are skeptical, and some have decided to take matters into their own hands.

In the last few years, manufacturers have been leaving South Australia in

30 JUNE 2017 Manufacturers’ Monthly

droves. Toyota, Holden, United Dairy Power and Coca Cola Amatil are just some examples of South Australian manufacturers that have called it quits in recent years.

While there are many factors that contribute to the closure of a plant, there is no doubt that high energy costs and lack of reliable supply have been push factors for SA manufacturers. Now there are fears that NSW manufacturers could suffer the same fate, with wholesale

electricity prices set to increase significantly from this July.

However, it appears that Australian manufacturers are already feeling the pinch. This includes the nation’s biggest manufacturing sector – meat processing.

Affordable and reliable energy supply is crucial for the meat processing sector, according to Robert Barker, policy manager at the Australian Meat Industry Council (AMIC). Gas in particular acts as an important source

of energy to maintain the baseload, and for direct input in plant operation.

Results from an AMIC survey have shown that energy costs were up an average of 30 per cent in 2016 when compared to 2010. In fact, some of the larger meat processors reported additional energy costs of $20 million in the past 12 to 24 months.

“Energy is at that critical stage, not only in terms of cost but also continuity of supply,” said Barker.

“Urgent action is required and

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Energy MANAGMENT Kingspan Insulation has opened Australia’s first Green Star-rated factory in Somerton, Melbourne, which it aims to run entirely on renewable energy. Image: David Waring

serious consideration should be given to taking export exposed meat processing plants off the grid.”

The Turnbull government, however, believes the answer to industry’s problems is a reduction in the cost of wholesale electricity and gas prices. As such, the government has demanded that the Australian Energy Market Commission (AEMC) and Australian Competition and Consumer Commission (ACCC) investigate rising prices, and Turnbull has proposed a restriction on Australia’s gas exports so providers can distribute more gas locally.

According to Turnbull, this could reduce wholesale gas prices from approximately $20/gigajoule (GJ) to $10/GJ. This is despite the fact that there is documented evidence that renewable alternatives could provide industrial heat at an even lesser cost.

The Australian Renewable Energy Agency (ARENA) released a report last year that showed biogas, geothermal and solar thermal alternatives could provide industrial heat at the equivalent of $5/GJ. The cost of solar PV and wind 32 JUNE 2017 Manufacturers’ Monthly

energy has also significantly decreased in recent years, and both are now well below the cost of new gas plants, and even the cost of existing gas plants at current prices.

While it depends how much gas is needed for the industrial process in question, renewables are often a cheaper option than traditional gas, as

The economics of biomass or biogas is even more compelling than solar thermal, particularly for industries such as paper, agriculture, food, beverage, and wood that get their biomass for free as a result of their manufacturing processes. Geothermal is also a compelling option, even at prices of $5/GJ.

Energy costs [for meat processors] were up an average of 30 per cent in 2016 when compared to 2010. Some of the larger processors reported additional energy costs of $20 million in the past 12 to 24 months. shown in ARENA’s analyses.

According to the agency, solar thermal technologies to generate heat are viable for temperatures up to 150 deg C, and are worth consideration at up to 250 deg C. Using solar thermal for temperatures above this however, is more difficult to justify.

The attractiveness of these opportunities will grow as gas prices increase and renewable technologies mature, according to ARENA. In fact, energy solutions company Schneider Electric is already seeing interest in this area.

“We are seeing tremendous demand

from clients to source a mix of green energy at a competitive rate,” said Steve Wilhite, Schneider’s senior vice president of energy and sustainability services, commenting on the company’s purchase of Renewable Choice Energy.

“As clean energy reaches price parity with traditional energy, companies are taking aggressive steps to integrate renewables.”

One company going to significant lengths to integrate renewables in its production is Kingspan Insulation, which has recently opened Australia’s first Green Star-rated manufacturing plant in Somerton, Melbourne.

The 14,000 sqm facility was designed using sustainably sourced building materials, a 750kW solar system, a rainwater harvesting system and energy renewing ventilators that provide double the minimum fresh air requirement. The facility also utilises Kingspan technology, including a smart lighting system and high performance insulation.

Most importantly, Kingspan aims to power this facility entirely through renewable energy. manmonthly.com.au

Innovation that saves you space, time and money “Do it right!”

According to Kingspan CEO Gene Murtagh, Net Zero Energy manufacturing is a high priority for the company, which intends to meet the energy needs of its 100-plus factories around the world through renewable energy by 2020. It currently meets 60 per cent of its energy requirements.

“From a commercial perspective, the Net Zero Energy target is important for energy security and mitigating the future risks in rising energy costs,” said Scott Gibson, managing director, Asia-Pacific for Kingspan Insulation.

“Kingspan, as with all responsible manufacturers, wants to see a future where the carbon emissions from manufacturing worldwide are drastically reduced. We have over 100 manufacturing sites worldwide so we can have an impact, and as a company we believe in it passionately.”

Queensland-based zinc metals producer, Sun Metals, is another company that is taking energy into its own hands. In a response to Queensland’s rising electricity manmonthly.com.au

prices, Sun Metals made the decision to build a 100mW solar PV plant to supply its refinery located near Townsville, Queensland. The $155 million solar project also forms a key part of the company’s plans to expand the output of its refinery by 25 per cent.

“Large-scale solar is fast becoming one of the most cost-effective sources of energy generation in Australia,” said Jack Curtis, First Solar’s regional manager for Asia Pacific.

“This project represents the viability of the commercial and industrial solar market in Australia and the growing trend of major energy consumers owning and operating renewable energy assets.”

Curtis added that with more than a dozen large-scale solar projects to be built in Australia this year, it is clearly a tipping point for largescale solar.

Sun Metals is also a proponent of rule changes to the electricity market, particularly those that could encourage battery storage and reduce the pricing power of fossil fuel generators.

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Manufacturers’ Monthly JUNE 2017 33

3D PRINTING The Wollongong legacy: How 3D printing can support traditional manufacturing Manufacturing cities such as Wollongong and Newcastle have, historically, been the bedrock for the steel and coal industries. Steven Impey speaks with Leanne Connelly, cofounder of Me3D, to discuss how 3D printing is lending a hand in both camps.

C

ITIES built on coal and steel can act as the bedrock for mobilising advanced manufacturing across Australia, according to an industry champion.

Leanne Connelly, co-founder of the manufacturer Me3D, is based in Wollongong, where her company makes student-friendly 3D printers which schoolchildren as young as seven are now learning to operate.

She also cites Newcastle, traditionally a place known for steel manufacturing, as an area of growth for new technology, and says that the city is uniquely placed and already primed to aid emerging industries.

“I think 3D printing is an incredibly powerful tool for more than just manufacturing, and is speeding up the process of product development and product design,” said Connelly.

“It is also decreasing the cost of establishing manufacturing capabilities and is already augmenting the traditional manufacturing industry.

“But I think where it is going to

be most interesting is in industries that previously weren’t able to tap into that product development side and directly manufacture things themselves.

“It used to be a case that you had to go through lengthy and expensive processes to have things made, but now these companies are using new technologies.”

The medical sector is one area where she has seen growth, as 3D printing has enabled the production of surgical implements and even biological elements on site.

In the construction industry, it is also proving to be a “cheap and flexible mechanism for the building of small-scale structures”, Connelly explained.

“It is also changing the core structure of companies creating parts for low-volume but high-cost industries like – like the aerospace industry and has even expanded into the food industry,” she continued.

“The power is in its democratising technology – it offers the ability to customise and augment items on site.

3D printing is influencing the manufacturing industry.

34 JUNE 2017 Manufacturers’ Monthly

Me3D presents its technology at the official opening of iAccelerate in Wollongong.

“When you see very large, traditional companies like Caterpillar are now putting a 3D printer on every employee’s desk and into the hands of everyone on their teams, that’s when you start to realise this is a creative tool anybody can use.

“The best thing we can do is give people the skills they need to use it as young as possible so that, once they hit the workforce, they are not on that huge learning curve and they already know the basics.

“That’s where we will see real waves of innovation – not only in 3D printing but also in how effective 3D printing can be.”

The materials industry is next – with polymers, metals and ceramics set to see the biggest advances in the next five to 10 years.

Machines will be able to rapidly switch and combine materials from the ground up, which means companies will be able to save by

only taking materials they need rather than stocking up for rainy days.

Advanced manufacturing employs around 11,000 people in Wollongong, which represents an 11 per cent increase in the past 12 months.

In addition, the city sees 600 students graduate from the University of Wollongong with an engineering-related degree annually.

This is said to benefit from the city’s rich manufacturing legacy.

“Steel manufacturing and mining are still vitally important to the city,” said Gordon Bradbery OAM, Lord Mayor of Wollongong. “[However], we are now seeing the rise of advanced manufacturing, with highly specialised companies such as Bisalloy and Micromax, competing in global and national markets.

“The rise of these competitive advanced businesses is bringing significant changes to our city.” manmonthly.com.au

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What’sNew Embedded PC range WITH the new CX2000 series of embedded PCs, Beckhoff offers more core processing power in a DIN rail-mountable format. This new performance class utilises Intel Xeon D processors with 4, 8 and 12 CPU cores, enabling powerful controllers in a compact design.

flexibly-configured, factory-fitted multi-option interface.

All existing CX2000 plug-in modules – those attached from the left and right – can also be used on the new devices to ensure maximum flexibility.

Beckhoff Automation Australia 03 9912 5430 www.beckhoff.com.au

Three units are being introduced, which differ according to the CPU used: 1. CX2042 | Intel Xeon D-1529 @1.3 GHz, 4 Cores 2. CX2062 | Intel Xeon D-1539 @1.6 GHz, 8 Cores 3. CX2072 | Intel Xeon D-1559 @1.5 GHz, 12 Cores The 4, 8 and 12 processor cores offer strong processing power and parallelism, even for extremely demanding automation tasks.

Optimal multi-core support from TwinCAT 3 automation software makes it possible to distribute the individual tasks of a control process across the available CPU cores. This means that the computing load can be planned in fine detail to achieve the best possible processor efficiency.

A cable-free plug-in connection facilitates easy fan replacement if required, and the regulated fan speed can be queried in the PLC. All basic interfaces of the CX2000 series are also available in the new units: 2 x GBit Ethernet, 4 x USB 3.0, DVI-I (including VGA) as well as the

Wireless data loggers

Rugged tablet

THE Fourtec DataNet is a wireless data logging system to measure temperature, humidity, voltage, current, frequency, and pulse. The logging system can be used for real-time monitoring with the help of its ZigBee wireless technology.

The portable range of DataNet is a data acquisition system and is suitable for monitoring environments in labs and hospitals.

The DataNet logging system operates on license-free 2.4 GHz RF frequency and is suitable for multiple applications in the pharmaceutical and lab sciences industry due to its robust meshed network. The RF data logging system can provide alarm notifications via siren, email, and SMS. Easily connect any external sensor to the loggers’ voltage and current inputs to monitor pressure, infrared temperature and the likes.

The user can monitor temperature, humidity, and other sensors across a facility without using WiFi. The data collected can be monitored online in tabular and graphical formats. Detailed data analysis, logger calibration and network configuration can also be easily performed with the help of DataSuite software which is comprehensive and easy to use.

PANASONIC has launched what it says is the world’s first tablet using centimetre-level RTK GNSS technology, in collaboration with u-blox.

Toughpad, the new version of the company’s professional grade notebooks family, is specifically designed for precision agriculture, machine control and robotic guidance applications in harsh environments and conditions. Embedded in the tablet is a u-blox NEO-M8 GNSS receiver module delivering high integrity and precision in demanding applications world-wide.

First successfully tested for collecting snow in Hokkaido, the Toughpad tablet uses the company’s satellite positioning technology combining a satellite radio receiver module, wireless WAN, and a single band Real Time Kinematic Global Navigation Satellite System receiver connected to an external antenna. This system enables high precision positioning down to centimetrelevel in open sky conditions.

Panasonic Australia 03 8710 3200 www.panasonic.com/au

Esis www.esis.com.au 02 9481 7420

36 JUNE 2017 Manufacturers’ Monthly

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Configuration is carried out directly via the large display, using Leuze Sensor Studio or directly via the PLC, which saves the settings and makes it possible for devices to be replaced without having to re-configure.

The measuring light curtain is equipped with an integrated switch for setting up a ring or linear topology. Through cascade mounting with a dead zone of just 23mm between beams, fast response times and the detection of transparent objects, this model is able to perform gapless object tracing, eg. on conveyor lines.

The data can be transmitted with a speed of 100Mbit/s. Depending on the length (up to 2880mm), the measuring light curtain makes the data available cyclically within 1ms to 53ms.

The maximum length of the measurement data is 222 bytes, whereby the individual values of the individual beams can be output at any position. As a result, an evaluation of height, width or orientation can be realised easily and quickly.

INTEGRATION of ABB’s MNS-Up with ABB Ability Mission Critical Power Control System enables a connected solution to ensure the reliability of critical power applications such as data centres, process industries or hospitals.

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According to the company, the solution enables users to save up to 10 per cent capital in electrical infrastructure. It requires up to 30 per cent less space compared to traditional architectures, and can be up and running as much as 20 per cent faster due to reduced installation and commissioning time.

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Dual technology dryers COMPAIR has launched a dual technology dryer, the CDT, which combines refrigeration and adsorption technology into one compressed air treatment package.

The technology is said to use 60 per cent less power than traditional heatless adsorption ‘twin tower’ dryers, reducing energy bills. According to the company, low running costs are further assured as the system consumes less purge air – only five per cent – compared with 15-20 per cent for heatless dryers and seven per cent for heated dryers, resulting in a greater volume of air downstream.

Offering up to 30 per cent lower regeneration costs when compared with conventional heat regenerative dryers, according to the company, the new technology means it is possible for a business to increase the volume of useable compressed air from its existing system without having to add a new compressor. This helps to reduce the total cost of ownership while improving operational efficiencies.

The CDT first removes water vapour from the incoming untreated, humid compressed air, before passing through to the adsorption stage, where a series of high-performance oil/water aerosol and particle removal filters ensure the moisture content is reduced to a standard dew point of -40 deg C and is user configurable from +3 to -70 deg C pdp. Capacities range from 2.5 to 34m3/min.

CompAir Australia 1800 634 077 www.compair.com.au

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Manufacturers’ Monthly JUNE 2017 37

The Last WORD Fuelling the growth for the future Ai Group’s chief executive, Innes Willox gives the breakdown of this year’s Federal Budget and what it bodes for the Australian economy for the rest of the year.

E

Ach year the Federal Budget tends to be notable for things it has done, and that has been the case again in 2017 – but equally, this year’s Budget has important implications for industry because of things it hasn’t done.

Many manufacturers may have taken note on 9 May that the Treasurer left two critical programs untouched: the Research & Development Tax incentive was retained, as were the levels of permanent migration, which remain at 190,000 for 2017-18.

In our Pre-Budget submission, Ai Group noted that the government’s response to the Review of the R&D Tax Incentive was the major innovation issue for resolution. The R&D Tax Incentive has been heavily and repeatedly amended over the past decade, to the point where it has become so unstable and unreliable that it is growing more difficult for it to have its intended effect: underpinning sustained increases in innovation investment.

As such, the Treasurer’s announcement of no changes to the R&D Tax Incentive is extremely welcome, returning as it does a measure of continuity and stability to this important program.

On top of this, no new funding or programs were announced within the National Innovation and Science Agenda (NISA), with further announcements regarding a second package of NISA programs to be announced later this year. But in the meantime, the Budget did confirm funding of $100 million for an Advanced Manufacturing Fund over the next five years, with a very welcome focus on the ongoing transition of local automotive industry. This will include: • $47.5 million for a new Advanced Manufacturing Growth Fund, committed over two years, in addition to the existing $155 million Growth Fund that helps 38 JUNE 2017 Manufacturers’ Monthly

industry adjust to the wind-down of car manufacturing. This will pay for up to a third of the project cost of capital upgrades to establish and expand high value manufacturing in South Australia and Victoria.

• $4 million for the Advanced Manufacturing Growth Centre, committed over two years, to support small scale and pilot research projects in advanced manufacturing, small firms and early stage researchers.

In a Budget that carried a significant emphasis on skills, the decision not to reduce permanent migration numbers is welcome.

It comes on the back of the government’s announcement in the lead-up to the Budget that the much maligned 457 visa program would be replaced by a new skilled visa system.

Importantly, it will be steep hikes in levies on employer-sponsored migrant workers (temporary and

The Budget did confirm funding of $100 million for an Advanced Manufacturing Fund over the next five years, with a very welcome focus on the ongoing transition of local automotive industry.

• $20 million under the Cooperative Research Centre – Projects initiative, over two years, for larger scale advanced manufacturing research projects (each worth up to $3 million in funding over three years).

• $10 million to establish Innovation Labs in South Australia and Victoria, with test centre facilities and business capability development. These will be delivered through existing government services such as the Entrepreneurs’ Programme, Industry Growth Centres and Austrade.

• $5 million for engineering student research at universities, technology institutions and in industry to support the automotive design and engineering sector.

• $13.5 million tariff reduction on imported vehicle prototypes and components used by Australian motor vehicle design and engineering services.

permanent) that will fund a new ‘Skilling Australians Fund’ to support apprenticeships, traineeships and vocational training for occupations in high demand and/or in regional locations – a welcome initiative, but one that industry will pay for. As such, Ai Group will be fighting to ensure that industry gets the input into this program that its dollar contribution would warrant.

In Ai Group’s Pre-Budget survey of Australian businesses, more than a quarter of all manufacturers nominated “increased government spending on infrastructure” as their number one priority, so the Budget’s heavy emphasis on infrastructure investment is another pleasing result.

The Budget commits to several new infrastructure projects. Critically, it also invests in the capacity of Infrastructure Australia and the Department of Infrastructure and Regional Development to support the development of project business cases and to expand the capacity to

assess and prioritise the pipeline of new projects. Financing for the projects draws on a mix of traditional grant funding, direct equity injections by the Commonwealth, public sector borrowing and the involvement of the private sector.

More generally, the Budget confirms that the government remains committed to cutting the company tax rate to 25 per cent for all businesses by 2026-27 – the top concern of business in our PreBudget survey. The value of tax cuts is included in the forward projections over this extended period (as a revenue reduction), but no detail or timetable will be confirmed until the supporting legislation is passed by Parliament.

And in the big picture, this year’s Budget measures do not appear to have pushed out the deficit further over time, with last year’s forecasts for the government to run a deficit until at least 2020, at a reducing annual size, confirmed.

The retention of the timetable for the return to a budget surplus is indeed welcome. This has been achieved in the context of a realistic assessment of gradually improving economic growth, employment and business investment while taking a range of savings measures off the table – and maintaining the commitment to that crucial uniform 25 per cent company tax rate.

Overall, the 2017 Federal Budget represents a fresh start to fuel future growth. While there is unfinished business, there is a welcome and more inclusive approach that invests more directly in the community as well as indirectly by promoting growth.

Innes Willox, Chief Executive Australian Industry Group manmonthly.com.au

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