AMT AUG/SEPT 2018

AUSTRALIAN MANUFACTURING TECHNOLOGY YOUR INDUSTRY. YOUR MAGAZINE

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008

CONTENTS

Volume 18 Number 04 AUG/SEP 2018 ISSN 1832-6080

FEATURES INDUSTRY 4.0 Factories of the Future Digital strategies behind the ‘Smart Enough’ Factory Unlocking the potential of AI for manufacturing Building Industry 4.0: Getting the IT foundation right Industry 4.0: Not possible without intelligent sensors Mazak – Bringing Industry 4.0 to the machine shop Plug-and-play connectors for modular machines Royal Australian Mint simplifies manufacturing

46 52 54 55 56 58 60 62

QUALITY & INSPECTION 3D stereo measurement Specialist machine shop enjoys new capabilities

64 66

STATE SPOTLIGHT – WESTERN AUSTRALIA High-end machines and automation key to success Camco leverages reputation for reliability FBR assembles Hadrian X construction robot

72 73 74

CUTTING TOOLS Optimising tooling solutions for oil & gas applications Keeping rail operators on track

76 78

BUSINESS MANAGEMENT Winning in Industry 4.0 Innovation – Invention – Collaboration Getting innovation and production to play nice together Blockchain beyond Bitcoin How the conceptual design stage can benefit engineering The appeal of the ‘flat’ organisation How information overload could be blocking sales The need to offer high-quality support

84 86 88 89 90 91 92 93

MATERIAL REMOVAL Okuma’s DCMC range – A proven winner

94

FORMING & FABRICATION Headland: Shamic Sheetmetal continues to innovate

96

WASTE/RECYCLING AWRE 2018 Balancing commercial viability with sustainability World first waste microfactory launched at UNSW Small QLD firm hits big milestone in recycling plastics

100 101 102 103

WORKHOLDING Revolutionising workholding

104

46 Factories of the Future Industry 4.0 keeps making headlines as the digitalisation of manufacturing picks up pace.

But what does it mean for Australian manufacturers?

68 Aurora Labs – A new industrial revolution?

The continued evolution of additive manufacturing is inspiring innovators around the world, but there won’t be many who can match the ambitions of Perth-based Aurora Labs.

80

REGULARS From the Editor From the CEO From the Ministry From the Industry From the Union

10 12 14 16 18

INDUSTRY NEWS Current news from the industry Special report: Vic. Manufacturing Hall of Fame

20 28

VOICEBOX Opinions from across the manufacturing industry

32

PRODUCT NEWS Our selection of new and interesting products

38

COMPANY FOCUS Aurora Labs – A new industrial revolution?

68

ONE ON ONE Mark Goodsell – NSW Head of the AiGroup

Mark Goodsell works for the Ai Group as its NSW Head and its National Lead – Manufacturing. He’s also Executive Director of the AAMC. He speaks with AMT.

102

80

AMTIL FORUMS

106

AMTIL INSIDE The latest news from AMTIL

110

MANUFACTURING HISTORY – A look back in time

118

AMT AUG/SEP 2018

One on One

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010

FROM THE EDITOR WILLIAM POOLE

Time for WA to get in the zone No matter how many times I go to Perth, one thing I’m not sure I’ll ever get used to is the jetlag. Coming from the UK, jetlag for me was something you got when you flew long-distance, across oceans, between continents. You didn’t get it on domestic flights.

Obviously, the UK is that little bit smaller than Australia. And admittedly, flying Melbourneto-Perth doesn’t inflict the same degree of jetlag as London-to-New York, or MelbourneLondon. But it’s still enough to throw you, just slightly.

This came up in a conversation I had (while slightly jetlagged) with Phil Kitney of Flecknoe Industries, during a recent trip to Perth to catch up with some of AMTIL’s members in Western Australia (WA). Phil noted that WA sits in UTC+08:00 (Coordinated Universal Time plus eight hours), the world’s most populous timezone. Therefore, while it lags a couple of hours behind Australia’s eastern states, there’s no need to reset the clocks in dealing with roughly one-quarter of the world’s population.

Housing around 1.7bn people, UTC+08:00 encompasses all of China, Mongolia, Hong Kong, Macau, Taiwan, Malaysia, the Philippines and Singapore, plus parts of Russia and Indonesia. And also WA. When you widen the scope to two hours either side of UTC+08:00, WA shares similar office hours with around 60% of the world’s population, primarily in the fast-growing economies of Asia. Of course, time differences can seem irrelevant in our 24-hour, globalised world. But there’s no doubting that, when you pick up the phone to call a business contact, it helps to be sure they’ll be at work, not in bed.

It’s often remarked that Australia’s future prosperity lies in our engagement with Asia, and in this regard WA is leading the charge. China, Japan, South Korea and Indonesia together accounted for 92% of all WA’s goods exports in 2015. And you can see it in WA businesses like Flecknoe, which does a lot of business in Asia – with Phil racking up some truly daunting air miles in the process.

I was last out in WA a couple of years ago, when a slowdown in the resources sector was casting something of a shadow over the local manufacturing industry. This time around the outlook seemed a lot more positive, with Flecknoe just one of several AMTIL members reporting brisk trade.

That sense of economic resurgence was reiterated by commercial real estate group CBRE, which recently highlighted a $60bn pipeline of infrastructure projects slated for WA that are set to help the state recover from the aftermath of the end of the mining boom.

CBRE notes that many of these investments were focused outside traditional resources sectors, potentially reducing the local economy’s dependency on extractive industries.

These are promising signs, but there are also concerns. Adrian Griffin is Managing Director of Lithium Australia, a Perth-based company working in innovative lithium-based battery technology. Lithium batteries are integral to the ongoing global transition to renewals, and with its abundant lithium deposits, WA is well placed to capitalise. Many see this as a chance to create ‘Lithium Valley’ – a Silicon Valley for the battery industry – moving beyond simply exporting concentrated ore to instead establish a sustainable, innovative, valueadding industry. However, Griffin warns that these aspirations risk being stymied by the Federal Government’s proposed changes to research and development (R&D) funding.

WA has always been vulnerable to the boom-and-bust cycle of global commodities markets. The state’s improving economic outlook is undoubtedly great news, but the latest gains shouldn’t be squandered by repeating past mistakes.

YOUR INDUSTRY. YOUR MAGAZINE.

AUSTRALIAN MANUFACTURING TECHNOLOGY

Editor William Poole wpoole@amtil.com.au Sales Manager Anne Samuelsson asamuelsson@amtil.com.au Publications Co-ordinator Gabriele Richter grichter@amtil.com.au Publisher Shane Infanti sinfanti@amtil.com.au Designer Franco Schena fschena@amtil.com.au Prepress & Print Printgraphics Australia AMT Magazine is printed in Australia using FSC® mix of paper from responsible sources FSC® C007821 Contact Details AMT Magazine AMTIL Suite 1, 673 Boronia Rd Wantirna VIC 3152 AUSTRALIA T 03 9800 3666 F 03 9800 3436 E info@amtil.com.au W www.amtil.com.au Copyright © Australian Manufacturing Technology (AMT).

All rights reserved. AMT Magazine may not be copied or reproduced in whole or part thereof without written permission from the publisher.

Contained specifications and claims are those supplied by the manufacturer (contributor)

Disclaimer The opinions expressed within AMT Magazine from editorial staff, contributors or advertisers are not necessarily those of AMTIL. The publisher reserves the right to amend the listed editorial features published in the AMT Magazine Media Kit for content or production purposes.

AMT Magazine is dedicated to Australia’s machining, tooling and sheet-metal working industries and is published monthly.

Subscription to AMT Magazine (and other benefits) is available through AMTIL Associate Membership at $165 (inc GST) per annum.

Contact AMTIL on 03 9800 3666 for further information.

1394AMTAUG/SEP2018

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012

FROM THE CEO SHANE INFANTI – Chief Executive Officer AMTIL

Building resilience – the AMTIL National Conference We are pleased to be able to promote the AMTIL National Conference in Melbourne this month, with a diverse line-up of speakers delivering a packed program of wide-ranging content.

With the theme ‘Strategies for Manufacturing Resilience and Growth’, this year’s Conference will provide delegates with insights and strategies that can help them to build resilience in their businesses, capitalise on opportunities for growth beyond the traditional routes, and think outside the square. The one-day event offers a program that touches on every aspect of life in a manufacturing business today, looking into issues ranging from the relevance of automation for small manufacturers, through to ways that managers can develop effective leadership, communication and relationship-building skills, and a whole lot more. We have put together a great program and a terrific array of speakers, who will be informing you at the Conference.

I get asked all the time by manufacturers that want a chance to get into the defence industry: how do I do it? Well, come and hear what is involved in being a supplier to a major US defence company.

Rick Shalders is the Director of Raytheon Australia’s Industry Development Unit. His presentation, ‘Opportunities to work with Raytheon – What’s involved in being a supplier’, will give attendees a broad introduction to Raytheon and what it does, outline the opportunities available to companies within its supply chain, and offer insights into how source selection is performed. He will also discuss lessons learned from nine years of the Global Supply Chain program.

Did you know two-thirds of the fastest growing companies fail?

Every business wants to grow but not every business has the right structure to support growth. Getting it right is vital in managing all the moving parts and not let it get out of control. Ian Cattanach from William Buck will outline the key considerations that need to be corrected for a business to achieve and sustain its growth objectives.

Gary Bertwhistle has always had a passion for innovation and creativity. As a thought leader in this space, Gary has helped companies, teams and individuals in companies of all sizes, in all industries and categories, to look at how they currently do things and address what needs to change in order for them to think differently and maximise their potential. He is often called upon when companies or individuals lose their mojo. I have heard Gary a number of times and he is thoroughly worth listening to.

The closing address at the 2018 AMTIL National Conference will be delivered by iconic athlete Deanna Blegg, in which she will be discussing ‘Personal Resilience’. In 1994, aged just 24, Deanna was diagnosed with HIV after years of high-level sporting success.

Deanna refused to be beaten; she has since had two children and

spent the last ten years travelling the world, competing in sport, and achieving World Champion status once more. Deanna will share her life journey in detail, discussing how she used solutionfocused thinking to overcome obstacles and live a happy, fulfilling life. Deanna’s story shows how personal resilience can help you follow a full and rewarding path.

In addition, Dr Jens Goennemann, Managing Director of the Advanced Manufacturing Growth Centre (AMGC), will be delivering the keynote address, which will explore the topic ‘Building Resilience in Australian Manufacturing’. Other speakers include: Claire Madden, founder and director of strategy and communications agency Hello Clarity, Alex Kingsbury, former Director of CSIRO’s Lab 22 Additive Manufacturing facility and Andrew Bartlett, General Manager Bosch Australia Manufacturing Solutions.

Alongside the must-see speaker program, the 2018 AMTIL National Conference will also feature a range of exhibits by some of the most dynamic organisations engaged in advanced manufacturing in Australia today. With stimulating presentations and a comprehensive exhibition area, the 2018 AMTIL National Conference offers a great chance to learn ways to strengthen your business, as well as to network and interact with peers from throughout the industry. www.amtil.com.au/Events/AMTIL-Conference

On a personal note and on behalf of AMTIL’s Board of Directors and Staff I would like to wish Phil Hayes the very best wishes as he starts life’s next chapter. Phil recently retired as Managing Director of Okuma Australia, after giving more than 30 years of service to the Australian machine tool industry.

Phil was instrumental in the formation of AMTIL. As President of the Institute of Machine Tools Australasia (IMTA) through the mid-1990, Phil worked diligently with the Australian Machine Tool Association (AMTA) to bring the two bodies together and form AMTIL in 1999. There was a lot of involvement from committee’s of both organisations over a two-year period leading up to that time but it was ultimately Phil’s drive that saw the successful merger.

So Phil, we owe you a debt of gratitude and wish you all the best for whatever the future holds.

Dean McCarroll has taken over the position of Managing Director of Okuma Australia and I also take the opportunity to wish Dean the best in his new role.

1387ANC

Strategies for Manufacturing Resilience and Growth WED 22ND AUG, 2018 • LEONDA BY THE YARRA, HAWTHORN VICTORIA amtil.com.au/Events/AMTIL-Conference AMT AUG/SEP 2018

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FROM THE MINISTRY SENATOR THE HON MICHAELIA CASH – Minister for Jobs and Innovation

Enabling the transformation of Australian manufacturing High-end precision engineering skills are becoming increasingly important as our country makes the shift from traditional to advanced manufacturing.

Perth-based company Hofmann Engineering is a leader in this field. Employing 500 Australians, and providing services and solutions across various industries, Hofmann’s success is no accident. The company is continuously developing and refining new processes for manufacturing, investing in automation and robotics, as well as digitising its product ordering process to improve their customers’ experience. In fact, it invests $30m in research & development a year. It believes focusing on niche markets has been vital to its success. Hofmann is one of the few firms in the world which makes the planetary gearboxes used in wind turbines. It also uses automated robots to manufacture thousands of track pads annually, used in the undercarriage of earth moving equipment.

Companies like Hofmann are demonstrating the impact and benefits of Industry 4.0. As many readers are aware, Industry 4.0 – or the ‘Fourth Industrial Revolution’ – is the use of digital technologies to improve business productivity and competitiveness in delivering these products and services to customers.

Examples of Industry 4.0 technologies include 3D or additive manufacturing, advanced robotics, augmented and virtual reality, artificial intelligence and data analytics.

The Australian Government understands the transformation taking place in the manufacturing sector.

In Australia, these changes coincide with the end of the resources investment boom.

The Government is working to ensure Australia’s transition to an innovation-led economy means it is well placed to leverage the opportunities presented by future manufacturing trends. We understand the future of manufacturing in Australia lies in embracing new technologies and developing high value-added products and pre and post-production services. This includes research & development, design, engineering, marketing, sales and aftersales. Western Australian companies like Hofmann, and other businesses across the country, are being well supported by the Government when it comes to capitalising on opportunities presented by Industry 4.0.

The Department of Industry, Innovation and Science is currently finalising guidelines for the $5m Industry 4.0 Testlabs for Australia initiative, part of the Government’s strategy to prepare businesses for the transition to

AMT AUG/SEP 2018

the smart factories of the future. The initiative will establish five new Industry 4.0 testlabs at selected Australian universities. Funding for these will be available from 1 July this year.

The Testlabs initiative will accelerate collaboration between educational institutions and industry, particularly small and medium enterprises to develop the skills needed to full advantage of the opportunities presented by Industry 4.0. Testlabs provide a physical space for businesses and researchers to come together to trial, explore and showcase Industry 4.0 technologies and processes and builds on the recommendations of the Industry 4.0 Testlabs in Australia report, released by the Prime Minister’s Industry 4.0 Taskforce.

Jeff Connolly, as Chair of the Taskforce, and Innes Willox, CEO of Ai Group, have agreed to transition the taskforce into a permanent body, which will be called the Industry 4.0 Advanced Manufacturing Forum. The forum will lead on the next phase of Industry 4.0 activities, focusing on building skills and education, awareness and collaboration between a broader cross-section of industry.

At the same time, the Advanced Manufacturing Growth Centre (AMGC), in collaboration with the Innovative Manufacturing Cooperative Research Centre (IMCRC), have developed futuremapTM, an interactive tool for businesses to benchmark their readiness to adopt Industry 4.0 processes and practices. They are currently running futuremapTM workshops for businesses across the country.

As Hofmann Engineering is demonstrating, innovative companies are already investing in and implementing Industry 4.0 data and digital technologies as part of their business planning and operations. Initiatives like the

Advanced Manufacturing Fund and the Industry Growth Centres Initiative are helping our manufacturing businesses become globally competitive and adopt innovative technologies and business practices.

Through the Advanced Manufacturing Fund, the Government is investing in world-class advanced manufacturing facilities, fast-tracking research towards commercialisation, and developing our leading engineers and scientists.

The Australian Government’s 2018-19 Budget earmarked a massive $2.4bn for technology and science over the next 12 years in a bid to support “a stronger and smarter economy”.

“The Government will invest more than $2.4bn in Australia’s public technology infrastructure,” Treasurer Scott Morrison said in his Budget speech. “This includes supercomputers, world-class satellite imagery, more accurate GPS across Australia, upgrading the Bureau of Meteorology’s technology platform, a national space agency, and leading research in artificial intelligence.”

The Government will invest $29.9m over four years in artificial intelligence and machine learning, which it says will support business innovation across digital health, digital agriculture, cybersecurity, energy, and mining. Our commitment to Industry 4.0 is just one of many examples of how we’re creating an environment that is going to allow manufacturing businesses to grow and compete by embracing new technologies. The adoption and deployment of these technologies is essential to the transformation of Australia’s manufacturing industries.

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016

FROM THE INDUSTRY INNES WILLOX – Chief Executive Australian Industry Group

Energy crisis goes from worse to bad Energy should be boring. Like many technically complex goods and services that underpin our lives and work, we only pay attention when something has gone wrong. The prominence of energy in political debate is a very bad sign.

Ai Group rang the alarm on the gas and electricity price surge that buffeted Eastern Australian businesses and households over the past year. Building on our earlier research, our 2017 report, Energy shock: no gas, no power, no future? put into stark terms the scale of the challenge created by an export-led gas price rise and a much tighter electricity market dependent on gas generation.

Over time, warnings from industry were heeded: the Federal Government and the States, the energy market authorities, the gas and electricity industries, and industrial energy users themselves have taken action and produced results. The Australian Domestic Gas Security Mechanism led to agreement with the gas exporters to alleviate a looming gas shortage. Mothballed gas generators came back online, industry committed to provide demand response, big batteries materialised with extraordinary speed, and the 2017-18 summer passed without major supply problems. The latest official forecasts no longer show a gap in electricity or gas supply.

The improvement goes beyond supply security: prices for electricity and gas in 2018 are significantly down from 2017.

But as a new report that we have just released outlines, the improvement is strictly relative. We’ve gone from worse to bad. Energy prices are set to remain well above their historic average, sapping the competitiveness of many industries and putting households under pressure. Can we go from bad to good?

The future of gas prices looks bleak for gas users: supply costs are high and exports have permanently transformed the market. New supply is essential to avert a return to the scarcity pricing of 2017, drawing on conventional, unconventional, onshore, offshore and import options.

However, these sources won’t unseat export parity pricing. Gas users will likely have to economise, fuel switch, or leave Eastern Australia in search of cheaper gas in Western Australia, the Northern Territory or overseas.

Improved energy efficiency could help a lot of electricity users too, and Ai Group’s members are finding new ways to save thanks to the spur of high prices and improved tools for monitoring and analysing their energy use. However, while gas looks set to stay expensive, the future

AMT AUG/SEP 2018

of electricity prices could be much brighter for users. The costs of key supply and storage technologies are rapidly falling. But there are three big barriers to overcome: • Gas hurts power prices. Gas generation is currently an important share of total electricity supply and essential to provide flexible capacity to meet swings in supply and demand.

But if gas is going to stay expensive, its role in electricity must shrink or we will be condemned to endless high electricity prices.

• We are lagging on flexible supply beyond gas. Reducing the volume of gas generation is easy – the current surge in RET-driven renewables development is already set to cut gas use sharply. Replacing gas as a source of everyday flexibility is harder, and this is what will make the biggest difference to prices. There are many other flexible options, from pumped hydro and batteries to demand response. Coal plants can be upgraded to make them more flexible, and greater technological and geographic diversity of renewables can make their collective output steadier.

More reforms to planning and market design are needed to let all these options flourish.

• Uncertainty cruels investment.

Suppliers will have to spend money for users to save money, but more than a decade of political warfare on climate has left immense uncertainty for energy investment. The architecture

of climate policy can make a big difference to the expected returns from any project, whether coal, gas, renewables or storage. Continued uncertainty will see lower, slower investment than we need.

If we want to bring down prices we are going to have to narrow the range of policy uncertainty. A government takeover is no solution. Even if governments were willing to foot the bill and take on the risks of underwriting the electricity system, this would just put electricity even more at the mercy of politics.

The National Energy Guarantee is the only solution on the table that could be durable enough for investors to plan around. Different parties and governments will continue to debate the right level of emissions targets, but the mechanism can be stable if the Commonwealth and States agree to write the NEG into the National Electricity Law. By pairing emissions targets with reliability obligations for electricity retailers, and giving them wide flexibility to meet these requirements at the least cost, the NEG is technology-neutral and can improve affordability, maintain reliability and help Australia meet our Paris Agreement commitments. Most of all, the NEG can unblock the investment we need to fight back against the loss of Australia’s competitive advantage in energy.

The COAG Energy Council and the Federal Parliament need to find the courage to compromise, and make energy boring again.

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FROM THE UNION PAUL BASTIAN – National Secretary Australian Manufacturing Workers Union

Manufacturing turned the corner. Where to from here?

Twelve months ago, Jim Stanford and Tom Swann of the Centre for Future Work put out a paper that predicted bright things ahead for the Australian manufacturing industry. Productivity and profits were up, the exchange rate was down, and business optimism and exports were growing.

Now, 12 months later, we can see that this bold prediction is starting to come true. In the last year we’ve created 50,000 new jobs in the industry, despite the winding down of automotive manufacturing in that period.

This has resulted in strong real growth in manufacturing output, which reflects the consistently positive results in the Australian Performance of Manufacturing Index (PMI) over the last two years.

In order to fan the flames of this growth and grow a sustainable future for our industry, we must address the major issues which threaten the viability of local firms.

Energy certainty, investment certainty The increased cost of energy in Australia has been driven by a lack of leadership by the Federal Government. Australia must transition to a low-carbon future and we must do it in a way that supports key industries like manufacturing during that transition. The failure by successive governments to adopt a gas reservation policy – a measure that is common around the world – has exposed Australian households and businesses to prices above those on the global market.

This has turned energy price from a comparative advantage for Australian businesses into a disadvantage. We have great resources of both fossil fuel and renewable energy – we should never be in a situation where energy is a weakness and not a strength. As I write this, the National Energy Guarantee is still being debated in the Federal Parliament. What our industry needs is a policy that has bipartisan support, will meet our emissions reduction targets, and will deliver energy at prices that will allow our industry to grow. It cannot be held hostage by climate deniers, it cannot be used as a bargaining chip to win other concessions – the needs of Australian households and businesses must come first.

I’ve spoken in this column previously about Labor’s plans for a $1bn manufacturing future fund and its role in attracting investment in local businesses. This policy, combined with energy certainty and stability, will help to reassure investors that Australian manufacturing has a bright future.

Growing our skills, growing our industry The promising growth in employment numbers brings us to another important

AMT AUG/SEP 2018

topic that all growing industries must confront – skills. While our first priority should always be to place workers who have been made redundant in one part of the industry into new jobs created in other parts, this is not always possible or practical.

While jobs are going in the automotive and printing sections of our industry, they’re growing in the machinery & equipment and food sectors. The geographic locations and occupations of those jobs that are being lost may also differ wildly from the jobs that are being created.

A paper put out recently by Dr Tanya Carney and Jim Stanford highlights the many challenges in delivering the skills that our industry will need now and into the future.

Their research highlights that employers are reporting skills shortages in trades like metal fabrication, welding and fitting for the first time since the GFC. These shortages highlight the need to reestablish a genuine tripartite approach to life-long learning. Our industry is constantly evolving and so the skills and experience that are required will continue to change as well.

The advent of Industry 4.0 and the roll-out of cyber-physical systems will have the largest impact on workers in semi-skilled jobs. To avoid the worst of this, we must ensure that Australian manufacturing workers are highly skilled, productive and valuable.

Shipbuilding goes from strength to strength The announcement this week that the Government will spend $35bn to build the nine Future Frigates in Australia is wonderful news for our industry. This announcement is further validation of the hard work done by the AMWU members who campaigned hard against to keep our naval shipbuilding industry alive.

The construction of these ships is expected to result in 4,000 high-skill, high-wage jobs in Australia, rather than overseas.

By deciding to build our Future Frigates in Australia, as well as our Future Submarines, the Government has provided businesses up and down the supply chain with the certainty to invest in our domestic naval ship-building industry.

What we should see now is a huge investment in physical and human capital as we build the capabilities that we need to participate in the global supply chain. There is decades of work building the ships and submarines for the Royal Australian Navy, but we should be aiming to have Australianmade components in navies all around the world.

But, without support from Government to reward investment, build skills and encourage exports, we will not get the best out of this once-in-a-generation investment in Australia’s naval shipbuilding industry.

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INDUSTRY NEWS

Energy, skills dominate National Manufacturing Summit The 2018 National Manufacturing Summit saw industry stakeholders assemble in Canberra on 26 June.

Hosted at Parliament House by Weld Australia, the 2018 Summit had the theme Solutions to Critical Issues: Energy and Technical Training. The Summit sought solutions to the two crucial constraints faced by the manufacturing sector in Australia: energy insecurity, and fragmented skills and training.

The increasing cost and unreliability of Australia’s energy supply is putting manufacturing under considerable pressure. Many of the Summit’s keynote speakers, including Professor Ross Garnaut, President of SIMEC Zen Energy, and Mark Butler, Shadow Minister for Climate Change and Energy, highlighted the importance of innovative, sustainable and environmentally ethical solutions to return certainty and security to Australian businesses.

Garnaut argued that the way to ensure energy security in Australia is through renewable energy sources, balancing the intermittence of these sources with battery technologies, and investing in training skills for the manufacturing sector. Garnaut added that Australia has a comparative advantage in the new world of renewables.

“Nowhere in the developed world are solar and wind resources together so abundant as in the west-facing coasts and peninsulas of southern Australia,” said Garnaut. “South Australian resources are particularly rich… Play our cards right, and Australia is a superpower of the low-carbon world economy.”

to deliver major projects. According to Coulson, the answer to the failure of vocational training is co-operation between industry and training organisations. Coulson said: “Industry input can lead to more strategic and targeted interventions to align the training system with industry needs. As such, the manufacturing industry can help facilitate information sharing and collaboration between government, employers, trade unions and training providers.”

With increasing employment opportunities in manufacturing (particularly in light of the Government’s $90bn Naval Shipbuilding Plan), highly skilled workers are required now more than ever, by defence prime contractors, a range of subcontractors and numerous manufacturing companies. If projects are to be delivered efficiently and Australian companies are to take full advantage of the opportunities available, technical training needs an overhaul.

Cameron addressed the increasing demand for technical skills throughout Australia’s manufacturing sector: “Demand for deeper technical skills for the workforce, particularly in advanced manufacturing, is growing,” said Cameron. “We need a system built on quality, collaboration, depth, reliability and transferability that: equips people with knowledge and education for good working lives; skills the workforce for existing and emerging jobs; and recognises the importance of highly skilled TAFE teaching professionals.” The Summit was closed by Assistant Minister for Vocational Education and Skills, Karen Andrews, who spoke about rebuilding confidence in the manufacturing industry.

Many of keynote speakers – including Dr Jim Stanford, Director of the Centre for Future Work; Neil Coulson, Victorian Skills Commissioner; and Doug Cameron, Shadow Minister for Skills, TAFE and Apprenticeships — focused on the importance of technical training to the future of Australian manufacturing, and what action needs to be taken now to ensure Australia has the workforce capability

“Rebuilding confidence in the industry will grow demand for skilled workers as well, presenting an opportunity to thousands of apprentices and trainees,” said Andrews. “I am confident the apprentices in the coming years and the qualified workers they will become will have the exact skill sets needed by the manufacturing sector to deliver major projects to world standard and beyond.”

Skills shortage could curb manufacturing rebound The ongoing resurgence in Australia’s manufacturing industry could be cut short by a growing shortages of skilled workers, according to a new report on vocational training in manufacturing.

After years of decline, Australian manufacturing is adding almost 50,000 jobs in the last year – one of the best job-creation records of any sector in the whole economy. However, the new report, from the Centre for Future Work, identifies key factors behind a rapid emergence of skills shortages in manufacturing, including: • The sector’s ageing workforce, creating a looming demographic transition for skilled workers.

• The highly specific nature of manufacturing skills (across sectors and occupations), creating difficulty for workers moving from between shrinking sectors to growing sectors.

• The need for new skills and ongoing training as companies adopt advanced techniques and new digital technologies.

“Manufacturing is again making a positive contribution to Australia’s economic progress after over a decade of decline.

We don’t want to squander this potential,” said Dr Jim Stanford, Director of the Centre for Future Work. “If Australia doesn’t get

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its act together on vocational training, this will be a wasted opportunity for manufacturing.”

Key principles for rebuilding vocational manufacturing, discussed in the report, include:

education

in

• A greater reliance on courses and apprenticeships through public-sector TAFE (rather than private providers) • Phased-in retirement programs to allow senior workers to pass on their skills to new apprentices • Inclusion of provisions guaranteeing access to further training in industry awards and enterprise agreements.

“No sector feels the pain of the failure of vocational training more than manufacturing, precisely because advanced skills are so essential for the success of advanced manufacturing techniques,” added Stanford. “Manufacturing stakeholders need to work together to strengthen vocational education and training.”

INDUSTRY NEWS

Work commences on Australian rail technology map The Rail Manufacturing Cooperative Research Centre (CRC) is partnering with the Australasian Railway Association (ARA) and Deakin University to develop a Smart Rail Route Map for Australia’s rail industry.

The $550,000 project ($200,000 in cash funding from Rail Manufacturing CRC and ARA, and $350,000 in in-kind contributions) will identify a long-term vision for technology in the rail industry over the next 30 years through the establishment of a common view of priorities, themes, timelines and actions.

“The Smart Rail Route Map will help our industry to realise the vision of a national approach to rail technology, bringing economies of scale, support interoperability and many other efficiencies,” said Danny Broad, ARA’s CEO. The Deakin University project team, led by Professor Douglas Creighton from Deakin’s Institute for Intelligent Systems Research and Innovation, will provide expertise in Systems Mapping when workshopping, developing and modelling this project’s outputs.

“The project team is collaborating directly with a newly established steering committee, made up of representatives across the Australian rail industry, to define industry goals, map the key challenges for the rail sector over the next 30 years relating to technology disruption, and identify focus area objectives and initiatives,” said Prof Creighton. The Rail Manufacturing CRC is responsible for identifying and funding innovative rail research that benefits the

Australian rail industry. Dr Stuart Thomson, the Rail Manufacturing CRC’s CEO, said: “The Smart Rail Route Map will translate ideas and data into a meaningful direction for how the Australian rail industry can leverage technology in the coming decades. The Rail Manufacturing CRC looks forward to working with the ARA and Deakin University to see tangible collaborative opportunities identified.” The Smart Rail Route Map will be technology-neutral, and communicate the detail in a non-technical manner. The project outputs will be owned by the Australian rail industry and will be used to support the introduction of new technologies and services efficiently and cost-effectively. Following an initial Smart Rail Industry workshop held in Melbourne in April, the steering committee and various industry participants have participated in four mini-workshops to discuss the map’s key focus areas: Customer Service (Passenger), Customer Service (Freight), Traffic and Network Management, and High-Performance Rail.

The Smart Rail Route Map will be front and centre at the 2018 Telecommunication and Technology Forum, to be hosted by the ARA in Melbourne on 30 October. The project is expected to be completed by 31 December.

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INDUSTRY NEWS

3D printing to create precision mining equipment The Innovative Manufacturing CRC (IMCRC) has become a partner in a research alliance with Downer and the University of Technology Sydney (UTS)’s Rapido advanced technology development unit.

Anticipated to run over a three-year period, the research alliance covers the first phase of a project to research solutions that will revolutionise how composite polymers are used to manufacture mineral separation equipment and create new manufacturing technologies. UTS will house all project work at a new additive manufacturing (AM) facility at its Broadway campus to network and brainstorm various conceptual ideas.

AM which will hasten the way in which composite polymers are deposited to manufacture our mineral separation equipment, in particular, gravity spirals,” said de Andrade. “We expect to see positive environmental impacts, such as decreasing the need for chemicals and reducing air contamination, which will significantly improve the operational environment for our manufacturing workforce.”

Located in the UTS Faculty of Engineering and IT, the project will be undertaken with Rapido, a unique rapid prototyping unit established in 2016 to help industry, government and community partners translate innovative ideas and complex problems into viable products and solutions.

Herve Harvard, Director of Rapido, says the unit seeks research partnerships to engage staff and students in innovative projects that help to bridge the gap between industry and universities. Two PhD students will be allocated to the Downer/IMCRC project and mentored throughout its lifecycle.

It is anticipated that the new AM methods will attract the next generation of engineers and workforce who will become skilled at setting up 3D printers as well as profile programming and CAD meshing development. David Chuter, IMCRC’s CEO and Managing Director, pointed out that applying AM technologies will not only revolutionise the manufacturing process of mineral separation equipment but the associated supply chain operations, especially when the equipment is fitted with IoT sensors.

“Partnering with Rapido harnesses a unique capability in terms of the breadth and depth of expertise and advanced facilities we have at UTS,” said Harvard. “This project demonstrates how UTS is becoming a leading university in AM and, in this particular context, leading in the capability to develop bespoke 3D printing technologies suitable for manufacturing functional parts.”

Alex de Andrade, Mineral Technologies’s Global Manager – Sales, Equipment and Technology, is an associate professor with UTS and will provide industry partner leadership to the project. He said the project is aligned with Mineral Technologies’s strategic technology roadmap as it focuses on delivering AM products with embedded Internet of Things (IoT) connected sensors.

These sensors will direct operators to optimal set point recommendations in real time. “This project will define an accelerated deposition and curing technique for

“Mineral separation equipment is often operated in a remote and hostile environment,” said Chuter. “Deploying gravity spirals fitted with IoT sensors will offer Mineral Technologies a clear picture of the product performance. We also see that this innovative manufacturing approach and research could yield benefits for other sectors, such as vertical agriculture and other applications.”

Australia ranked joint-top for Technological Readiness Australia, Singapore and Sweden have topped The Economist Intelligence Unit (EIU)’s new Technological Readiness Ranking for 2018-22.

The ranking is part of the EIU report Preparing for disruption: Technological Readiness Ranking. In 2013-17 the top countries were Finland and Sweden.

The US and France will join the top ten in 2018-22. The scores shows the Netherlands has the best e-commerce offering, the UK has exemplary e-government services, and Taiwan is world leader for cyber-security. China has seen strong recent growth in patent applications years, but on the measure of patent grants as a proxy for innovation, the US remains the clear frontrunner.

Government investment will drive a broad-based improvement in countries’ tech-readiness in the next five years.

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Spending on e-government, cyber-security and a robust e-commerce environment will increasingly be seen as a policy priority.

The report builds on the EIU’s long-running Business Environment Ranking, which measures the attractiveness of 82 of the world’s largest economies as investment locations. The EIU’s new ranking focuses on how future-oriented these 82 business environments are. It assesses eight indicators across three categories: • Internet access, which looks at internet usage and mobile phone subscriptions.

• Digital economy infrastructure, looking at e-commerce, e-government and cyber-security.

• Openness to innovation, exploring international patents, research and development (R&D) spending, and the research infrastructure.

Emily Mansfield, Country Forecast Director at the EIU, said: “Technological change is inescapable, and how well prepared governments, businesses and individuals are for disruption is increasingly important. The US will climb sharply in our ranking in the coming years as internet access improves, and will remain the world leader for innovation clusters and new patents. Meanwhile the UK’s position will decline, reflecting comparatively low R&D spending – a key contributor to productivity growth – and inadequate investment in cyber-security”.

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Volgren and Deakin join forces to investigate next-gen lightweight buses A consortium of engineers, manufacturers and researchers are joining forces to investigate how scandium, a rare earth mineral, can be used to help produce the next generation of lightweight electric buses.

The Bus Optimisation Project is a partnership between Volgren, Australia’s largest bus body builder; Deakin University; scandium miner Clean Teq; and the Advanced Manufacturing Growth Centre. The partnership provides an opportunity to incorporate the latest thinking in metallurgical engineering with future bus design and advanced manufacturing techniques.

Peter Dale, CEO of Volgren, said that as the global market for electric buses expands significantly, lighter bus bodies will be a gamechanger, improving both range and capacity.

“Electric buses are without doubt the technology of the future, however, at the moment [they] are constrained by weight,” said Dale. “The challenge with current battery electric vehicles is the low energy density of Energy Storage Systems (ESS) or batteries in comparison to diesel fuel. The result is a vehicle’s operating range that is intrinsically linked with vehicle mass.

“Reduced vehicle range can be managed through increased frequency of charging stations, but this is costly and complicates bus route management. A lighter bus allows for the inclusion of a larger battery, giving extended range. It also equates to a greater passenger carrying capacity.”

Dale said the Bus Optimisation Project was initiated after Volgren approached Deakin with the challenge of removing up to a ton of weight from its popular low-floor city bus, Optimus. Volgren knew this would be a difficult task considering Optimus already boasts the lightest aluminium bus body of its type in Australia – and arguably the world.

“Deakin’s extensive capabilities in design, forming and metal alloy development have placed them at the forefront of metallurgical engineering,” said Dale. “Their researchers have already had success incorporating scandium into the aeronautic sector and we believe that expertise can form the foundation of the next generation of Volgren aluminium bus designs.”

The partnership between Volgren and Deakin also includes a PhD scholarship, to ensure that the research remains grounded in industry application. Dr Thomas Dorin, Associate Research Fellow at Deakin’s Institute for Frontier Materials, which focuses on innovation and development in materials science and engineering, said researchers will spend significant time at Volgren’s manufacturing facility during the research phase of the project.

“Our researchers will explore the potential of varying Volgren’s alloys’ compositions by using scandium additions to design a new alloy with the same or higher strength combined with better extrudability,” he explained.

Dorin said adding scandium in only fractions of a percent to aluminium “promotes a smaller, even-sized grain structure during solidification” and significant strength benefits without the need for heat treatment and thus potential lightweighting, without diminishing aluminium’s desirable attributes. Initial laboratory-scale extrusion trials will be conducted at Deakin. During the project, contact will be initiated with billet casters and commercial extruders in order to conduct industrial-scale trials.

Dale said the partnership with Deakin continues Volgren’s strong relationship with academia; combining world class research with industry applications to stay at the forefront of bus development.

Australian Made Campaign appoints new CEO The Australian Made Campaign has appointed Ben Lazzaro as its new Chief Executive. Lazzaro will succeed retiring CEO Ian Harrison, who stepped down at the end of July.

Lazzaro has an engineering and communications background with more than 15 years experience across a variety of management, sales, marketing and communications roles in consultancy, agency and in-house capacities. He joined the Australian Made Campaign in 2011 as Marketing & Communications Manager and in 2016 took on the role of Deputy Chief Executive.

enormous progress has been made, there is opportunity for the Australian Made team to further strengthen this Australian icon, here and overseas.”

According to Australian Made Campaign Chairman, Glenn Cooper, the Board had had a succession plan in place for some time.

“The logo has become one of the most powerful sales and marketing assets for businesses that make and grow products locally,” said Lazzaro. “It makes the Australian connection instantly, clearly and with authority, and is synonymous with quality and integrity – a truly global product symbol for our growers and manufacturers.

Ian Harrison was central to achieving that and to the enormous progress of the campaign over the last 14 years.

“Ben has been a key contributor to the success of the organisation and the Australian Made logo for many years now,” Cooper said. “Ben’s combination of skills and experience, paired with his understanding of country of origin matters, have him ideally placed to lead the organisation into its next exciting chapter.”

Lazzaro said he’s looking forward to his new role.

“It’s a real honour to be given the opportunity to lead this organisation and I thank the Board for that,” Lazzaro said. “While

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Lazzaro acknowledged the leadership of outgoing Chief Executive Ian Harrison in establishing the Australian Made logo as Australia’s global product symbol.

“The challenge ahead is to build on this success, evolve the Australian Made offering and continue to deliver value to Australian manufacturers and growers, as well as consumers the world over.”

INDUSTRY NEWS

‘Path to Advanced Manufacturing’ brings together thought leaders and innovators The ‘Path to Advanced Manufacturing’ event included $4.5m funding announcement to develop end market recycling solutions for China Ban waste crisis.

More than 100 of Australia’s most innovative manufacturing businesses and researchers gathered at the University of New South Wales (UNSW) on 4 July for ‘The Path to Advanced Manufacturing’, the Advanced Manufacturing Growth Centre (AMGC)’s sold-out networking and information session.

followed by tours of the university’s state-of-the-art research facilities, the Automated Manufacture of Advanced Composites (AMAC) Centre and the Sustainable Materials and Research Technology (SMaRT) Centre, which are already working with some AMGC members to develop revolutionary products and processes.

The UNSW-hosted event showcased industry thought leaders, including: Behrang Poorganji, Materials Development Leader at GE Additive; Lochie Bourke, Co-Founder of JAR Aerospace; Professor Gangadhara Prusty, Director of the UNSW AMAC Centre; and Professor Veena Sahajwalla, Director of the UNSW SMaRT Centre.

“Our event was a fantastic opportunity to bring together manufacturers and researchers to explore how the industry can continue to make great strides forward and compete in an ever-competitive international market,” Sharpe added.

Michael Sharpe, NSW State Director at the AMGC, commented: “The advanced manufacturing movement is in a very strong position across Australia and this will only improve in the coming years if the industry continues to innovate. A total of $36bn could be added to the Australian economy if the manufacturing industry prioritises competing on quality rather than price. The industry is at its strongest when it provides the best products, not simply the cheapest.”

Speakers discussed a range of new approaches to boost the Australian advanced manufacturing industry, with session topics including additive manufacturing, micro-factory technologies and automated composite manufacturing. The discussion sessions were

The event also incorporated the launch of a new funding grant, which will support manufacturers developing end-market solutions to tackle the China Ban waste crisis, known as China’s National Sword policy. The Product Improvement Program, a new recycling grant from the NSW Environment Protection Authority (EPA), will provide $4.5m of funding to organisations that own and operate facilities which reprocess or reuse recyclable materials. Applications are now open for individual grant funds of between $50,000 and $1m to businesses to encourage the reuse of waste in New South Wales.

The Product Improvement Program is now open for applications.

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INDUSTRY NEWS

Philip Hayes retires as Okuma Managing Director Philip Hayes, Managing Director of Okuma Australia Pty Ltd and Okuma New Zealand Limited, is stepping down after a career spanning 27 years with the Okuma brand. Okuma Japan has appointed Dean McCarroll as Managing Director.

Announcing his departure, Hayes commented: “It’s been a role I’ve truly enjoyed and I depart leaving a clear path for my successor, Dean McCarroll. Dean will explore and continue to deliver innovative change and seek sensible progress of Okuma’s subsidiaries in both Australia and New Zealand.”

McCarroll was first employed as National Sales Manager for Okuma Australia and has served the company as General Manager since 2002, working closely with Hayes over this period. A toolmaker by trade, McCarroll has more than 40 years in the machine tool business with the last 30 years in management roles.

In acknowledging his new role McCarroll commented: “It’s our people that truly define Okuma, with their passion, integrity, experience and knowledge, and this becomes the hallmark of what we stand for in the market as we partner with our customers from the first meeting. In keeping with industry trends I see my role as continuing to expand the professional development of our team and to highlight that engineering in Australasia as high-tech, clean and exciting.”

Hayes commenced with the Okuma brand at Gilbert Lodge and Company Limited in 1991, after 14 years working with John Hart Pty Ltd. Gilbert Lodge needed significant change management to meet emerging trends in technology, service, marketing, sales methodology and applications support. Its machine tools division was rapidly overhauled and fortunes began to change almost immediately. The company moved ahead in leaps and bounds to achieve a market-leading position within three years.

A revived co-operation with the management of Okuma Corporation in Japan saw massive annual gains posted year on year. In 2002, on behalf of Okuma, Hayes negotiated the purchase of all shares in Gilbert Lodge, by then known as Atlas CNC Machines. In 2004, Okuma New Zealand Limited was established with long-time Okuma champion Fred deJong appointed as its General Manager.

“Most people gave me little chance of recovering Gilbert Lodge,” Hayes said. “But it was what I strongly wanted. I also employed the people that I wanted. Those who weren’t suited to a new and active regime soon found out and made appropriate decisions about their own futures for themselves. Our employees over the years have done well for the various incarnations of our business, but fabulously well for our hundreds and hundreds of customers

Philip Hayes (left), Managing Director of Okuma Australia & New Zealand, with his successpor Dean McCarroll.

whose trust we have to thank for honouring our hard work and our truly great Okuma machines.”

Outside his role at Okuma, Hayes served as President of the Institute of Machine Tools Australasia (IMTA), who initiated, guided and orchestrated the merger with The Australian Machine Tool Association (AMTA). That merger resulted in the birth of AMTIL and the securing of the exclusive rights to the Austech exhibition.

Of many career highlights, Hayes said the greatest was the company’s work with Ford Motor Company in Geelong and his biggest regret is the closure of Ford Motor Company’s manufacturing facilities in Geelong. Hayes remarked: “Bob Hallett, Brian Makin, Lindsay Goss, Noel Wenning and even Don Deveson were all men of vision in full-scale automotive manufacturing. They are sadly missed from today’s fray.”

Objective3D appoints new Technical Services Manager Objective3D has announced the appointment of Arron Jack as its new Technical Services Manager.

Jack will be working with the Objective3D Technical Services team to empower its customers through more efficient usage of their professional 3D printers, as well as strengthening Objective3D’s drive and growth for greater market share in both Australia and New Zealand. Jack is well known to product designers and manufacturers across ANZ having spent almost two decades in a variety of technical roles in the 3D printing industry, the most recent with Fuji Xerox Australia.

“We’re very pleased to have Arron join our team,” said Objective3D Managing Director Matt Minio. “Arron’s technical experience spans the wide range of 3D printing technologies including Stratasys FDM and PolyJet. After-sales service and support for professional 3D printers are critical. Arron with his

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detailed knowledge and experience will assist in keeping our growing number of customers’ equipment operational. This will further strengthen our close relationships with our customers and enhance our potential for developing other opportunities.”

“Arron is an integral leader in our service team”, added Objective 3D Technical Director, Darryl Wootton. “We have been benefiting from his extensive background in a number of ways. He hit the ground running and immediately began contacting our customers and undertaking both onsite and over the phone.

Arron’s appointment is already resulting in more timely resolutions to customer technical service issues which is a key requirement in the market.”

INDUSTRY NEWS

Vale, Suzie Wright – 1968-2018 Suzie Wright, CEO and Managing Director of Digga Australia, passed away on 8 June following a long battle with cancer.

In a statement, the Queensland-based company said: “Digga has lost a vigorously passionate and intelligent woman, the Australian manufacturing community has lost its greatest advocate, and the world has lost a compassionate and amazing human being. No words can adequately express our sadness at Suzie’s death or our gratitude for the opportunity to work with her over the past 21 years.”

Digga has been manufacturing earthmoving machinery attachments in Australia since 1981. Established on the Gold Coast, the company today produces more than 70 different machinery attachments, which are exported all over the world.

Born and raised on the Gold Coast, Wright worked in her father’s contracting and construction business for over 15 years gaining hands-on experience in construction piling and general construction. Working for Digga since the mid-1990s, Wright was initially involved in the company’s marketing activities. As the business grew globally, her role became more pivotal and she was appointed Chief Executive Officer in 2004 at the age of 35.

Wright led a global company in a maledominated industry, paving the way for other women at Digga and throughout the industry. Wright was responsible for several successes, including the consolidation of Digga’s Australian operations; rescuing and successfully integrating Kanga Loaders into the Digga business; establishing a large manufacturing plant in the US; and rebuilding the head office facility in Yatala following a factory fire in early 2016.

Passionate about Australian manufacturing and supporting local jobs, Wright helped build strength and respect within her workforce, helping to place Digga into the best position in its 37 years in business. Wright also made it a priority that the company value and respect its customer and suppliers, forming strong relationships with them as part of the extended Digga family. Digga has announced that the company will remain 100% Australian and family-owned. Stewart Wright, the company’s founder, will remain as chairman of the board. Alan Wade will step into the CEO position of the Digga Group, with more than 25 years experience within the company. Peter Moody will remain as COO for the group.

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GOVERNMENT NEWS

Women shine at Victorian Manufacturing Hall of Fame Three accomplished women took centre stage at the 2018 Victorian Manufacturing Hall of Fame Awards on 29 May, held held at Crown Palladium in Melbourne.

State Minister for Industry and Employment Ben Carroll presented the inaugural Woman Manufacturer of the Year award to Vanessa Kearney from Viva Energy and Jill Walsh from Actco Pickering Metal Industries. The Young Manufacturer of the Year Award was taken out by another female trailblazer, Vanessa Katsanevakis, who won the award for her leadership at Sussex Taps. Katsanevakis guided the business through a major rebrand and a period of exponential growth.

AMTIL member Marand was also among the companies recognised on the night, with David and Tony Ellul joining the Honour Roll for their services to the industry. The Manufacturer of the Year awards went, respectively, to Bosch Australia (Large Business), Creature Technology Co. (Medium Business), and Osteon Medical (Small Business).

Siemens took out the new Leader in Industry 4.0 award, while PACCAR Australia was awarded the 2018 Leader in Workforce Skills Development, and Boeing Aerostructures Australia was inducted into the Company Hall of Fame. A number of other companies were also recognised with awards for excellence in some of Victoria’s key growth sectors, including:

Young Manufacturer of the Year Vanessa Katsanevakis, Sussex Taps Vanessa Katsanevakis leads Sussex Taps with her husband George. She started with the company at age 17 and has since guided the business to experience rapid growth. Bringing her passion for making beautifully crafted high-performance tapware to the company, Vanessa guided the business through a rebrand in 2015, opening a new world for Sussex. Vanessa is regularly involved in industry events, inviting suppliers and consumers to Sussex’s factory to showcase the company’s manufacturing methods, and visiting other manufacturers to forge connections and learn about their experiences. Vanessa gains great satisfaction in continuing her father’s legacy of excellence through her journey

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• Entegra Signature Structures – Construction Technologies • Albins Performance Transmissions – Defence Technologies • Chobani – Food and Fibre • Leica Biosystems – Medical Technologies and Pharmaceuticals • Keppel Prince – New Energy Technologies • Bombardier Transportation Australia – Transport Technologies The Hall of Fame Gala Dinner was attended by hundreds of industry stakeholders, and recognised outstanding manufacturing businesses and individuals.

“Victoria’s manufacturing industry is powering ahead and it is people like Vanessa Kearney, Jill Walsh and Vanessa Katsanevakis who are helping lead the way,” said Minister Carroll.

“Manufacturing has a bright future and the Andrews Labor Government will continue to support this important industry to create jobs and boost Victoria’s economy.”

from a junior to director, and a period of decline to renewal, and continues to focus on engineering excellence and being devoted to true Australian manufacturing.

Woman Manufacturer of the Year Vanessa Kearney, Viva Energy and Jill Walsh, Actco Pickering Metal Industries Vanessa Kearney is Commercial Manager for the Geelong Refinery of Viva Energy Australia, one of the largest, most complex hydrocarbon refineries in Australia with 700 staff. Vanessa commenced her career as a graduate chemical engineer at Kwinana Refinery (BP Australia). Through continued career advancement, she broadened her business experience and developed impressive leadership capabilities and

GOVERNMNET NEWS commercial acumen via management roles across supply and logistics, finance and refining. She also became the first female member of the Refinery senior leadership team and is a strong advocate and role model for women in non-traditional industries.

She established and continues to sponsor the Geelong Refinery’s Women’s Network, which offers support, development and networking opportunities to other women forging careers in nontraditional fields.

Jill Walsh is a Partner and also Director of Human Resources at Actco-Pickering Metal Industries, and the General Manager of ARM Group Australia.

Jill’s first major role in manufacturing came as partner for a company that developed service stations and small shopping centres in Queensland. She moved on to purchase a sheet metal fabrication business called Actco. Actco later merged with Pickering Sheet Metal and moved to Dandenong. Acto-Pickering specialises in the manufacture of high-quality sheet metal components for industries including transport, defence and infrastructure. Jill is also a member of the Committee for Dandenong and the Victorian Premier’s Jobs and Investment Panel. As board member for the Committee for Dandenong, she supports local manufacturers in Dandenong, including to encourage the take-up of apprenticeships and skilled workers. Jill is an active mentor to women across various industries, including both established leaders and those on the road to success.

Honour Roll – Service to Industry David and Tony Ellul Marand Precision Engineering David and Tony Ellul run Marand Precision Engineering, a successful designer and manufacturer of aerospace, defence and rail tooling including machining and robotics.

The business is considered to be one of Australia’s leading precision engineering companies.

It employs approximately 220 staff at its facility in Moorabbin and exports around 25-30% to the US, Portugal, China, India, and Singapore. Tony and David have made an active contribution to Victoria, including through regular engagement across a range of government bodies and manufacturing industry associations and workshops.

David has been employed at Marand for 35 years, in roles from apprentice through to Executive Chairman today. David was Managing Director of Marand from 2001 to 2014, a period that saw great growth and diversification into a broad range of industry sectors. David has also served as Director of Marand since 1998.

Tony commenced his career in 1977 by undertaking a fitting and machining apprenticeship at Marand, and gained extensive experience in the manufacture of complex, automated production machine tools and special purpose equipment for the automotive industry. Tony saw an opportunity and helped develop a strategy to diversify the company away from automotive, which marked the beginning of Marand’s involvement in aerospace and defence.

Manufacturer of the Year – Small Business Osteon Medical Founded by Michael Tuckman in 2008, Osteon Medical is a wholly Australianowned company based in Clayton and manufactures 100% of its products in Victoria. Osteon is fast becoming a world leader in the design and manufacture of dental and facial implant prosthetic products. All of Osteon’s products are digitally designed and precision-milled specifically to meet the needs of each patient.

Manufacturer of the Year – Medium Business Creature Technology Co. Founded in 2006 in Melbourne, Creature Technology has built a reputation for manufacturing the most lifelike giantsized animatronic creatures in the world.

Its products include the fearsome King Kong for the new Universal Orlando Resort theme park attraction ‘Skull Island: Reign of Kong’, and the dinosaurs for the blockbuster ‘Jurassic World: The Exhibition’ international tour. All the animatronic creatures are manufactured in Port Melbourne in a state-of-the-art facility by a team of 75 designers, engineers, sculptural fabricators, metal fabricators, animators, computer programmers, electricians, creatives and project managers.

Manufacturer of the Year – Large Business Bosch Australia Bosch Australia has had a presence in this country since 1907, opening its first wholly owned subsidiary, Robert Bosch (Australia) Pty Ltd, in 1954. The company now employs over 800 people in Victoria. In 2016 Bosch inaugurated its new headquarters and technical centre in Clayton. This $40m development is the single-largest investment by the Bosch Group in Australia since 1954.

In 2017, Bosch manufactured 113m power diodes – all of which were exported to a global customer base in Europe, China, India, and the Americas. Bosch is continuing to innovate, including building the first self-driving vehicle to be developed in Australia in 2016, and partnering with SwarmFarm to develop the next generation of agricultural robots.

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GOVERNMENT NEWS

NSW launches advanced manufacturing strategy The New South Wales (NSW) Government has launched a new strategy to transform the state into a global leader in advanced manufacturing.

The NSW Advanced Manufacturing Industry Development Strategy includes a dozen initiatives to make NSW a beacon for advanced manufacturing investment and exports, ensuring it can provide the jobs of the future. The Minister for Industry, Niall Blair said the work in this strategy co-ordinates actions across government, industry and research institutions to ensure that NSW manufacturing firms have everything they need to stay at the cutting edge.

“Our manufacturers touch the lives of almost every person in NSW every day – they keep the economy turning, provide vital products and create jobs across the state,” said Blair. “I believe NSW needs a strong manufacturing sector to unlock the opportunities the future holds. What matters most is not what a firm makes, but how they make it – that is what defines advanced manufacturing. We want to encourage NSW manufacturing firms to build on their significant strengths and excel on the world stage.”

NSW firms generate almost 30% of the nation’s manufacturing output, totaling approximately $33bn in industry value-added.

The sector in NSW employs about 253,000 people, invests about $6.7bn annually in R&D and exports products worth $2.4bn.

NSW’s strategy has been developed following extensive consultation with industry and stakeholders, including the Commonwealth’s Advanced Manufacturing Growth Centre, which has helped to analyse the competitive strengths and potential of NSW manufacturers. www.industry.nsw.gov.au/advanced-manufacturing

New service to streamline starting or growing a business The Federal Government has launched the Business Registration Service, aimed at providing a simpler and clearer way to register a business.

“Every year thousands of new businesses start up around Australia, and to speed them through this process the Turnbull Government is making it possible to get multiple business and tax registrations online through our new stand-alone Business Registration Service,” said Kelly O’Dwyer, Minister for Revenue and Financial Services.

“The service will be more efficient for businesses, and they will avoid applying for registrations they don’t need. The Business Registration Service is an integral part of the Government’s National Business Simplification Initiative.”

Over 140,000 registrations have been submitted since the trial version of the service was released in April 2017. The Business Registration Service has reduced the average time taken to obtain a business and associated licences to under 15 minutes.

“The response from users has been overwhelmingly positive and we’ve used it to continue making the service even better,” said Craig Laundy, Minister for Small and Family Business, the Workplace and Deregulation. “So far, we have made improvements to the payments screens, added links to Australian Business Licence and Information Service for state and local government registrations and licences; and started sending notification emails to direct users back to the dashboard for status of their registrations.”

The Department of Industry, Innovation and Science, the Australian Taxation Office, the Australian Securities and Investments Commission, and the Department of the Treasury collaborated to develop the service, available at: www.business.gov.au

Advisory committee to drive QLD manufacturing future A new 12-person ministerial advisory committee commenced work in July, using industry expertise to drive Queensland’s manufacturing sector.

Minister for State Development, Manufacturing, Infrastructure and Planning Cameron Dick hosted the Committee’s first meeting in July to craft the policies and programs to help the sector thrive and create jobs for Queenslanders. The Manufacturing Ministerial Committee supersedes and expands upon the Industry and Manufacturing Advisory Group, established in November 2015.

“The Palaszczuk Government is driving manufacturing in Queensland with a strong focus on growing the sector,” he said.

“But we also know nobody knows manufacturing better than manufacturers themselves, and we want to harness their input to expand that focus as we enter this period of optimism and opportunity for manufacturing in our state. The industry already employs around 165,000 people or 7% of the state’s workforce, making it the sixth largest employing industry in our state, and we know it contributes $19.2bn a year to the Queensland economy.

A thriving manufacturing sector will help Queensland realise its vision for a diverse economy, underpinned by skilled, knowledgebased jobs.”

“Our new Manufacturing Ministerial Committee will have a strong focus on regional Queensland and boosting skills to ensure future development of the sector and features a membership which

AMT AUG/SEP 2018

reflects the state’s diverse manufacturing industry, from niche small manufacturers to multinationals. Our government has taken steps to create an expanded committee specifically to ensure it includes greater representation from regional Queensland, not to mention also featuring an equal number of women and men.”

The Manufacturing Ministerial Committee comprises members from Queensland businesses, as well as industry bodies and unions. Christine Bridges-Taylor, General Manager of B&R Enclosures, said the Committee will support the state’s diverse manufacturing industry with a focus on innovation, business transformation and workforce development to build local supply chain capability.

Shane Rodgers, Queensland State Director for the Australian Industry Group, added that the Committee will address challenges facing the industry and strengthen the policy agenda to support manufacturing in Queensland. John McLean, Chief Executive Officer and Managing Director, Bundaberg Brewed Drinks, said that working closely with the State Government represented a fantastic opportunity to establish innovative ideas that will enable manufacturing businesses to expand and be more competitive internationally.

Commonwealth Government Entrepreneurs’ Programme partnering with AMTIL

It’s all about you.

Accelerating Commercialisation

The Entrepreneurs’ Programme (EP) is a Commonwealth Government flagship initiative focused on raising the competitiveness and productivity of eligible companies at an individual level. AMTIL is a partner organisation working with the Department of Industry in the delivery of the EP. The Programme forms a part of the Australian Government’s Economic Action Strategy and will deploy over 100 experienced Advisers and Facilitators, offering support to businesses through three key elements: 1. Business Management 2. Innovation Connections 3. Accelerating Commercialisation Accelerating Commercialisation helps entrepreneurs, businesses and researchers to address the challenges of bringing their products, processes and services to market.

Without the right advice and support this can be a very difficult, frustrating and challenging fraught with many dangers. It gives you access to expert advice, contacts, networks and exposure opportunities to put you on the fast-track to commercial success. Investors, technology entrepreneurs and strategic partners can forge links with high-calibre, high-potential Australian start-up tech companies through the Accelerating Commercialisation Portfolio and Expert Network.

Accelerating Commercialisation offers: • Matched grants of up to $1 million to support entrepreneurs on their commercialisation journey.

• Support and guidance from independent Commercialisation Advisers who will help you become investor and market ready.

• Introductions to influential business contacts and networks including investors, domain experts, entrepreneurs and strategic corporations, through the Expert Network. These connections are crucial to help you develop your business, raise smart capital and get into new markets.

• Opportunities to join an exclusive portfolio of highpotential Australian businesses that are marketed to investors and multinational corporations online, through media exposure and invitations to domestic and international networking events.

• Opportunities for potential investors, domain experts and strategic corporations to make connections with innovative, young tech companies.

Every business has different needs.

www.amtil.com.au

1302AMTILEP04

To find out what the Entrepreneurs’ Programme can do for you, call 13 28 46 or visit www.business.gov.au or contact Greg Chalker 03 9800 3666 or email gchalker@amtil.com.au

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VOICE BOX OPINIONS FROM ACROSS THE MANUFACTURING INDUSTRY

Co-creation can help our companies compete with global giants Australia needs to start a conversation about “co-creation”, writes Aleksandar Subic.

We live in a world where giants like the US and China lock horns over innovation. It’s a world where the value of a product lies much more in its intangible inputs – such as ingenuity – than in labour or capital. Lack of scale means Australian businesses are vulnerable in a world of giants. It can also mean the commercial rewards for local innovation haemorrhage offshore.

Co-creation is a business strategy that gives our companies a tilt at scale. The strategy essentially involves co-opting customer and stakeholder know-how to create commercial success. This means working with organisations outside the business: universities, research organisations, other businesses.

Co-creation can help Australian companies compete in a world where the biggest companies are bigger than many countries. On a list of the world’s biggest economic entities, Walmart is tenth after Canada. Apple and BP report revenues bigger than those of Switzerland, Norway and Russia. Amazon invests more in research & development than all Australian businesses combined.

In contrast, Australian Bureau of Statistics data show that large businesses (employing over 200 people) represent just 0.5 % of all employing businesses in Australia. Small businesses (1-19 employees) account for 93.5%. The remaining 6% are medium-sized (20-199 employees).

Australia does have a highly educated, urbanised and digitally connected workforce. This means we are well positioned to take advantage of global opportunities – and we are ambitious. But the limited size of most of our companies presents us with a serious challenge. Company scale is often the ballast needed to weather the storms of global unpredictability.

This is where co-creation can make a difference.

So what exactly is co-creation?

In a 2004 study, the scholars CK Prahalad and Venkatram Ramaswamy defined co-creation as “the joint creation of value by the company and the customer”.

Long-term business-to-business relationships often lead to co-creation. For example, Marand, a Melbourne aerospace manufacturing success story, has contributed innovations to the F-35 Strike Fighter, a global project led by US giant Lockheed Martin.

Another Melbourne manufacturer, Textor Technologies, similarly contributes innovations to its major customer, Kimberley Clark. And the co-creating is often reciprocal.

As a deputy vice-chancellor responsible for my institution’s research, innovation and impact agenda, I am interested in just such a journey, in co-creating with our stakeholders, with industry and with the broader Australian community. We are co-creating work-capable adaptive learners. This means they are equipped with the skills and capabilities to succeed in an inexact future shaped by the Fourth Industrial Revolution.

A recent example at Swinburne is the co-creation and co-delivery of advanced apprenticeships for industry. We are working alongside companies up and down the value chain (facilitated by Siemens and the Australian Industry Group) to develop the skills and capabilities that industry will need 10 and 20 years from now.

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The industry-embedded PhD by Practice research training model represents a new frontier in applied research, based on co-creation.

This research program is co-designed and implemented through deep partnership with industry. Students undertaking higher degrees by research are embedded in a high-value-add, practice-based industry environment. Industry experts and university researchers co-supervise them. Research students work on real challenges embedded in industry, producing tangible outcomes with impact.

This approach has the capacity to transform industries through research-led innovation and translation in situ. The model is about ensuring our best minds deliver impact for society and the economy.

New frontiers in research and innovation – unexplored areas outside the partners’ respective comfort zones – represent fertile ground for co-creation. One example involves developing a new blockchain technology platform in partnership with an innovative new company, Artchain Global. This could revolutionise the global art trade by ensuring the origins of artworks can be authenticated. Art fraud and the barriers to authenticating the provenance of art have plagued artists, collectors and galleries throughout history.

Co-creation has allowed my teams to embark on a journey with a wide range of stakeholders, including the company, investors, artists, art collectors and finance analysts. The project would arguably not be possible if any of us worked in isolation.

Now to make co-creation a national practice Traditionally, companies in Australia have tended to work in isolation.

Now the boundaries are blurring. When businesses have been willing to work with different parties to create products and services, they have reaped enormous rewards.

Companies from Silicon Valley approach me regularly. They want to know how we can co-invest in joint R&D initiatives – share the risks and the rewards with them, in other words. We are embedded now in Silicon Valley with our partner CSIRO embracing this cocreation and co-investment model focused on research-led innovation and translation.

Australia needs to do the same. Easier said than done, right?

A huge transformation is required in the 2020s to build Australia’s advanced capabilities. Australian companies of all sizes must be willing to take large steps into the unknown if they are to prosper.

A new model based on co-creation is essential if we are to achieve the hoped-for social and economic impacts. This calls for more strategic alignment with industry and community priorities, especially at a time of reduced business investment in research & development in Australia.

Partnering with a university might seem daunting, but I can assure you it is easy. Let’s start the conversation about co-creation.

Professor Aleksandar Subic is the Deputy Vice-Chancellor (Research & Development) at Swinburne University of Technology, and a member of the Prime Ministers Industry 4.0 Taskforce. This article was originally published by The Conversation. www.theconversation.com www.swinburne.edu.au

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VOICE BOX OPINIONS FROM ACROSS THE MANUFACTURING INDUSTRY

Manufacturers need to focus on marketing and branding Amid an industry that is facing radical, accelerating change, it’s often far too easy for manufacturers to forget the need to have a strong, diverse marketing strategy. By Craig Hingston.

Manufacturing in Australia is in the midst of a global paradigm shift. Industry 4.0. The Internet of Things. Automation. Artificial intelligence. Virtual reality. New disrupters keep emerging, forcing the industry to rethink how it is going to evolve and remain competitive.

The world is not as it was… and marketing and advertising is not as it was. As a marketing practitioner to the manufacturing space for the past 25 years I have gone through as much change with regard to communication as manufacturers have with 3D printing muscling in on CNC machining.

Today, people in business are increasingly distracted and have less and less time to focus on new messaging. The business landscape is unpredictable and moving rapidly, which requires the majority of businesspeople’s mental capacity. Whereas I once wrote articles of 500 words, I am now having to say everything in a few sentences.

Booklets have become flyers.

How do you effectively connect with your marketplace? If you are going to place your brand and your message (i.e. your capabilities, special offer) in front of your audience you need a multi-disciplinary marketing strategy. Don’t fall into the trap of doing an email blast here and an advertisement there. There is nothing ad hoc about effective marketing.

Start with the end in mind. That is, not what you want to say but what your audience is thinking. What challenges are they facing?

What benefits will they gain from an alliance with you? Focus on those points more than listing what you are capable of. Anyone can do that.

When I refer to “your audience” I immediately think of collaboration.

In Europe they understand collaboration better than we do. Their automotive industry is a classic example of this. It gives them a competitive edge. Here in Australia we are having to learn how to do it.

them aware that you are dynamic and active. Step Three is Understanding Their Needs, and this involves demonstrating your ability to address certain challenges in businesses from a variety of industry sectors. Step Four is Proven Solutions – case studies from within your audience’s sphere. Companies they know. Possibly their competitors.

The key is to present these messages in an unpredictable manner so that each ‘touch’ arouses a new curiosity.

I am a member of AMTIL because I regard it as the pre-eminent organisation for the manufacturing sector. We are a like-minded community. Let me ask you: how often do you contact your peers through AMTIL? How well do you know them? Have you considered forming strategic alliances with your community so that you can achieve your growth goals? Isn’t it better to reach them together than never to reach them at all?

Having a website and sending out emails is not enough. Look at all of the ways that your audience is impacted. It could be a mix of email, sales deliverables, sponsoring or speaking at a conference, an exhibition display, advertising, public relations (PR), cold calling and networking. The team at AMTIL host a range of great events throughout the year, but don’t wait for the next one. Invite people to your own business breakfast or lunch.

I have no doubt that you will find other AMTIL members who are a ‘perfect fit’ with your business. Even those which have similar equipment can have different strengths. Have the courage (and humility) to understand that it will probably take two or even three businesses working closely together to take you all to the next level.

Not everything from the bygone era is out of date. There was a time before email when direct mail had a lot of impact. We used to post out quirky multi-coloured mailers to attract attention. When I ask business owners how much mail they receive these days it is almost nil. This means that whatever lands on their desk with their name on it is highly interruptive. Digital printing has the ability to individualise each flyer-brochure. Now you can post out material with the contact’s name and their business name embedded in the artwork. This AMT magazine was mailed directly to you. It’s a prime connection point and it makes good sense to be advertising yourself here to your community and sending in success stories to the editor.

If you agree with me, consider a marketing strategy in which messaging is repeatedly being sent to your audience. This follows the age old adage of ‘Frequency And Reach’. Your AMTIL peers and other manufacturers (as busy as they are) won’t necessarily respond to your message the first time, so spread your marketing budget throughout the year for maximum effect.

I coined the phrase ‘The Art Of Destabilisation’ to describe a pattern or sequence of marketing activities designed to build Accelerated Trust with your audience, so that they feel comfortable to contact you.

Step One is Awareness. The first time someone sees your message they now know that you exist. Step Two is Building Confidence.

When they see repeated messaging about your business it makes

AMT AUG/SEP 2018

Craig Hingston is the Founder & Director of Your Image Marketing & Media. For more information about formulating the right marketing strategy and reaching the right audience, Craig’s ebook ‘The 9 P’s Of An Effective Brand’ can be downloaded free from his website. www.yourimagemm.com.au

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TECH NEWS

USA: New polymer process saves 1010 energy Anything that needs strong, lightweight and heat-resistant parts will benefit from a new manufacturing curing process that requires only a quick touch from a small heat source to send a cascading hardening wave through a polymer. The process uses 10 orders of magnitude less energy and reduces the time required. This could be the first major advancement to the high-performance polymer and composite manufacturing industry in almost 50 years. The current process of curing just one section of a large commercial airliner can consume over 96,000 kilowatt-hours of energy, using a large, energy-intensive curing oven. This process controls chemical reactivity to economise the polymer-curing process. There is plenty of energy stored in the resin’s chemical bonds to fuel the process. By touching essentially a “soldering iron” to one corner of the polymer surface, a cascading chemical-reaction wave was started which propagates throughout the material. Once triggered, the reaction uses enthalpy (internal energy of the polymerisation reaction), to push the reaction forward and cure the material, rather than an external energy source. The team demonstrated that this reaction can produce safe, high-quality polymers.

University of Illinois

USA: Ceramics deforming like metals For the first time, researchers have observed how ceramics formed under an electric field surprisingly change shape rather than break when compressed at high strain. This property will lead to more resilient structures such as aircraft engine blade coatings. Applying an electric field to the formation of YSZ - a typical thermal barrier ceramic - makes the material almost as plastic, or as easily reshaped as metal at room temperature.

Engineers could also see cracks sooner since they start to form at a moderate temperature as opposed to higher temperatures.

Ceramics normally don’t form dislocations (which allow metals to be fracture-resistant) unless deformed at very high temperatures.

Flash-sintering them, however, introduces dislocations and creates a smaller grain size which may slide as the ceramic material deforms, helping it to deform better. Flash-sintered ceramics also have very little porosity, which makes them more dense and therefore easier to deform.

Purdue University

Germany: New kinematics for milling An industrial robot (the Flexmatik 4.1) is being designed for the highprecision milling of a broad range of lightweight materials. The aim: achieving a production tolerance of just 0.1mm all over the robot workspace and to customise production, even for a batch size of just one unit. To ensure high precision, the team is developing a new drive concept for individual axes. Partially direct drives are used, which are considerably stiffer during operation than today’s high-tech gear units. And a new climate-control strategy minimises imprecision. The robot offers key benefits compared to machine tools: the cost of acquisition decreases by as much as a factor of 10 and the energy consumption by as much as a factor of 15. Its

AMT AUG/SEP 2018

workspace is on par with large portal milling machines, but has better accessibility and does not require a heavy foundation.

Fraunhofer

USA: “Blind” robot climbs stairs/ rough terrain The Cheetah 3 robot can leap and gallop across rough terrain, climb a staircase littered with debris, and quickly recover its balance when suddenly shoved, without an external camera or environmental sensors. Instead, it nimbly “feels” its way through its surroundings (“blind locomotion”). This is enabled by two new algorithms: a contact detection algorithm, and a model-predictive control algorithm.

The model-predictive calculates the multiplicative positions of the robot’s body and legs a half-second into the future if a certain force is applied by any given leg as it makes contact with the ground.

The calculations for each leg are made 20 times per second.

Researchers introduced unexpected forces and the algorithm enabled the robot to quickly produce counter-forces to regain its balance and keep moving forward, without tipping too far in the opposite direction. The researchers did not wish to place too much reliance on vision only, which is noisy, slightly inaccurate, and sometimes not available, instead designing a reliance more on tactile information.

MIT

Australia: Economically sorting copper waste Copper miners can slash their energy and water use for every tonne of the metal produced thanks to a breakthrough oresorting analyser developed by CSIRO. Taking advantage of MRI technology, the analyser rapidly identifies ore grade so that large volumes of waste rock can be rejected before it enters the plant.

Batches of ore are illuminated with short pulses of radio waves and magnetic resonance penetrates through the ores to rapidly and accurately detect ore grade. This significantly reduces the amount of energy and water needed. The technology could also enable low grade mines to be brought into production, It has an advantage over other ore sorting analysers that can often only go “skin deep” to detect mineral particles on the surface of ore, producing less reliable results. In addition to copper, the analyser can be applied to gold and iron-bearing ores.

CSIRO

France: The flying train (concept)

A plane that lands on a runway, shrugs its wings off, turns into a train and rolls on to rails to drop you off at your local station?

This is the vision of French entrepreneur Maurice Ricci - the CEO of Akka Technologies - who pitched his flying train concept to Boeing and others. Akka calls the plane/train hybrid “Link & Fly”.

Concept image of Akka’s Link&Fly

TECH HEADING NEWS Late last year, it released a digitally rendered video of the concept in action. With its wings attached, the craft doesn’t look different from an ordinary airplane. The primary difference is that the wings connect to one another over the plane’s cylindrical body, rather than connecting to each side of the plane separately. Once on the ground, the body of the flying train separates from those wings and the cockpit, dropping onto a platform positioned on tracks.

It’s then free to ride the rails.

Futurism

Scotland/Ukraine: ‘Self-eating’ rocket engine A group of engineers are developing a ‘self-eating’ rocket engine (‘autophage’) that uses its own structure as fuel. Most rockets use tanks to store their propellant, and the weight of the tanks is usually many times greater than the weight of the useful payload, reducing efficiency and contributing to space debris. The autophage engine would consume its own structure during ascent, so more cargo capacity could be freed-up and with less debris. The autophage engine consumes a propellant rod which has solid fuel on the outside and oxidiser on the inside. By driving the rod into a hot engine, the fuel and oxidiser can be vaporised into gases that flow into the combustion chamber. This produces thrust, as well as the heat required to vaporise the next section of propellant. Simply by varying the speed at which the rod is driven into the engine, the researchers have shown that the engine can be throttled – a rare capability in a solid motor.

University of Glasgow

Sweden: World’s strongest biomaterial Researchers have produced a bio-based material that reportedly surpasses the strength of all known bio-based materials. Working with cellulose nanofibre (CNF), the researchers have overcome the difficulty in translating the incredible mechanical properties of these nanofibres into larger, lightweight materials for use in airplanes, cars, furniture and other products. These fibres are 8 times stiffer and have strengths higher than natural dragline spider silk fibres.

The specific strength exceeds that of metals, alloys, ceramics and E-glass fibres. The new method mimics nature’s ability to arrange cellulose nanofibres into almost perfect macroscale arrangements.

The new process involves controlling the flow of nanofibres suspended in water in a 1mm wide channel milled in stainless steel.

Connecting flows of deionized water and low pH water help align the nanofibres in the right direction and enable the supramolecular interactions between CNFs to self-organise into a well-packed state where they are joined together.

KTH Royal Institute of Technology

USA: One-step, 3D printing for multimaterials A research team has used 3D printing in a one-step process to print structures made of two different materials for the first time. With Multimaterial 3D printed designs, properties like heat conduction, corrosion protection, as well as environmental adaptation can be better controlled and can eliminate the need for adhesives to allow for greater design variety and specificity. The researchers printed a nickel-chromium and copper structure. Inconel 718 is a nickelchromium alloy able to withstand high temperatures well, but cools very slowly. When the researchers added the copper in the 3D printing process, the part could be cooled 250% faster, meaning a longer life and higher fuel efficiency for airplane engines. They also printed metal-ceramic material as well as a bimetallic tube that is magnetic in one end and nonmagnetic in the other in one operation with a single machine. This is a step towards the next level of manufacturing.

Washington State University

USA: Embedding coded data on 3D-printed parts Printing UDI or QR codes on a product typically requires an extra step after the part has been manufactured. This slows down production and adds time and cost. Now, US company - Rize - has developed a method that embeds identifying information on a product during the 3D-manufacturing process. It goes beyond simple tracking to include codes that are loaded with all the relevant design and engineering data for that part. Rize utilises its augmented polymer deposition (APD) technology and a proprietary thermoplastic compound to vary material properties of the thermoplastic during deposition, creating new design possibilities. The ink cannot be rubbed off.

So this secure capability creates an immutable digital connection between the physical part and its digital twin for traceability and compliance.

American Society of Mechanical Engineers

“Electric propulsion is a lot simpler than a [plane with a conventional] petrol engine which has hundreds of moving parts.” Joshua Portlock, founder of Electro.Aero, which - with aircraft manufacturer Pipistrel - has started test flights for a single-engine, two-seater, all-electric plane (1hr flying time; 30mins reserve).

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PRODUCT NEWS

Technology of the future: Low pressure 4.0 Intelligent and straightforward blower control: the Sigma Air Manager 4.0 from Kaeser Compressors is the solution for blower station automation. This sophisticated controller delivers maximum energy efficiency and cost savings while making the station ready for Industry 4.0 applications.

The Sigma Air Manager 4.0 (SAM 4.0) is the core component of a blower station and the key technology needed in order to take advantage of the Industry 4.0 services of the future. It acts as the central mastermind and controls the individual machines with maximum efficiency while perfectly adjusting the flow capacity to match flow rate demand. All it needs from the process control system is the desired differential pressure value – the SAM 4.0 then ensures optimal control of all blowers.

Partial-load bridging and individual solutions are therefore things of the past, along with complicated setups. Now, all applications are supplied by one central blower station with a master controller that analyses operating data in seconds and simulates various scenarios in order to select the most efficient solution. The result?

Previously unimaginable energy efficiency.

All components within the station are optimally matched and controlled to meet the customer’s specific needs. Real-time process monitoring provides valuable operating data, which is forwarded for detailed evaluation. The analysed results help to predict potential faults as early as possible and prevent them by taking timely action.

maintenance could only be performed on the basis of a regular scheduled service date and repairs would be made only after a fault message had occurred. The SAM 4.0 now makes it possible to initiate maintenance before a fault occurs, thereby avoiding costly downtime and consequential damage.

The SAM 4.0 offers communication in 30 languages, while the easyto-operate 30cm colour touchscreen display shows at a glance whether the station is operating in the “green zone” for optimal energy performance. It’s incredibly easy to display and analyse a wealth of data, such as operating status, pressure curve, flow rate and power, as well as maintenance and any fault messages.

And, thanks to a network connection, this can be done not only at the machine itself, but also conveniently from a PC at the office or elsewhere. This powerful capability therefore provides peace of mind and lays the foundation for predictive maintenance; it also enables sophisticated energy management per ISO 50001.

The sensors and Sigma Control 2 controller integrated into the machine collect process data, which is immediately forwarded to the Sigma Air Manager 4.0. Specialised software is then used to transfer the information to the Kaeser Data Center for real-time analysis. The Kaeser Data Center performs central monitoring and processing of operating messages. Required predictive maintenance measures are then initiated as needed based on this information.

The master controller also makes it possible to take advantage of new options for predictive maintenance of blowers. Previously,

Ultimately this enables maintenance and necessary repairs to be performed at the precise moment they are actually needed. In turn, this saves time, minimises costs and ensures reliable blower availability, which in turn benefits all associated downstream processes. www.kaeser.com.au

Smart sensor for the Internet of Things Generating, transporting and processing information are central tasks in the Industry 4.0 environment. The basis for handling all that information is the intelligent sensors which provide the required input. With its BOS 21M ADCAP, Balluff has added a newly developed optical multifunction sensor in its BOS 21M series.

The versatile all-rounder uses red light and lets you choose from among four sensor modes: background suppression, energetic diffuse, retroreflective or through-beam sensor. All the sensor functions can be configured over IO-Link while the system is running, so that a remote teach-in can be initiated by the controller.

In addition the sensor detects actual operating conditions, collects and processes information and provides far more data than just the switching signal over IO-Link. Detection signals are prepared and pre-processed in the sensor.

This relieves the burden on the system controller and reduces data volume on the fieldbus systems.

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Comprehensive, smart diagnostics functions provide important information such as life expectancy, operating hours and function reserve. Increasing amounts of dirt deposits, sensor misalignment, setting errors or other irregularities can then be reliably detected early by monitoring the emissivity values as a measure of the sensor signal quality. However, when it comes to operating security, this intelligent sensor offers even more. The BOS 21M ADCAP is the first to optically monitor the output of the emitter LED directly and to determine the ‘stress level’ by means of the sensor interior temperature and the supply voltage. www.balluff.com.au

PRODUCT NEWS

DataSuite – A data integration system for Australian manufacturers Central Innovation, a leading provider of design software, hardware, systems, and people solutions, has announced its latest data integration solution. DataSuite automates the design process to prevent data entry errors, eliminate duplicate data sets, and speed up the manufacturing process.

Developed to meet the needs of Australian businesses, DataSuite enables companies to move and manage data between independent systems without manual processing. By providing a unifying platform between systems, DataSuite transforms the complex task of moving data between systems into a single, automated process that eliminates errors and reduces costs.

Manual data harmonisation between different systems is complex, tedious and prone to error. Subsequently, significant time is spent locating the data and reconciling it instead of making data-driven decisions. This causes a delay in time-to-market, lost productivity, and profit.

DataSuite prevents this and speeds up the build process to increase efficiency and profitability. Functions include: • ETL (Extract Transform Load): Gathering data created in siloed environments such as CAD and transforming it into a neutral format that can be manipulated and then moved easily to another differently structured system such as ERP. • Design Studio: Allowing the user to define business rules and event triggers.

• Transactions monitor: Providing a real-time monitor of data flow as well as static reports.

• Reconciliation: Allowing the manipulation of data mid-flow to transform into a format a second system can read correctly.

• PIOL (Production Information Orchestration Layer): Providing an advanced visual interface for managing production information data (attributes and relations).

• Connectors: Specific connectors to the platform for ERP, PDM, CRM and MRP systems such as MS Nav Dynamics, SAP, Pronto, NetSuite, M1.

• Triggers: Automatically invoking movement of data on defined events and rules.

“Data movement between systems is often a slow and difficult task for most businesses”, said John Atkinson, Director – Applications Development at Central Innovation. “For organisations that have multiple data sources and disconnected legacy systems, merging, reconciling, and moving data can be very challenging.

With DataSuite, data can be moved freely between systems via an automated process. Not only does this reduce errors and the number of duplicate data entries, it can also save companies thousands of dollars each year by speeding up the build process.” www.centralinnovation.com

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PRODUCT NEWS

Automation drives demand for gentle, secure, safe product handling The relentless advance of automation and robotics in countries with high manufacturing production costs is driving demand in Australia and New Zealand for product-handling technologies that permit high operational speeds without high product wastage.

“Sometimes mechanical, robotic or automated materials handling systems used in food, beverage, electronics and plastics industries, for example, may lack a degree of ‘touch’ or sensitivity needed to manipulate delicate products or packaging containers,” says James Maslin, Technical Product Manager Air at Springs Supply.

“Wastage or damage can result, with the associated costs and cleanup safety hazards.”

An internationally proven response to such issues is provided by Firestone’s easily installed pneumatic AirPicker and AirGripper end effectors, for which Air Springs Supply is national distributor. This materials-handling system – developed among the sophisticated and diverse industries of Japan and the USA – gives firm but safe and gentle handling of products during manufacturing and processing.

The AirPicker and AirGripper ranges comprise precision-engineered rubber product-handling devices, which inflate gently and evenly to manipulate delicate products or containers, giving that degree of touch or sensitivity required. AirPicker and AirGripper end-effectors combine pneumatic pressure control with the physical attributes of rubber. The result is an innovation that can give robotics or mechanical handling systems an important degree of touch and allow products to be handled securely and gently. AirPicker end-effectors are inserted into a product while deflated, then inflate outwardly to “hold onto”

the product’s interior walls. AirGripper endeffector collars are positioned around the product, then the sleeve inflates inwardly to form a grip around the product’s exterior.

Models are available with various inflation pressures to handle light-to-heavy loads, typically from 50g to more than 20kg. This cushioned transporting can help eliminate damage, breakage, and other processing problems. AirPicker and AirGripper endeffectors have already been proven in assembly, loading, shifting, conveying and many other manufacturing operations around the world. “Nothing holds, moves or grips like the AirPickers and AirGrippers, which are designed to inflate evenly, with inside diameter and outside diameter gripers producing a wide, shock-absorbing and slip-free contact surface for sure movement,” says Maslin.

Air Springs Supply’s website offers product specifications and selection criteria, including details of a range of more than a dozen pickers and grippers in materials including stainless steel, plated steel and aluminium. Certified to ISO 9001: 2008 Quality Management Systems – Requirements, Air Springs Supply has more than 30 years’ experience in pneumatic engineering, with a long-established national sales, service and technical support network to help provide solutions for industry www.airsprings.com.au

World-first Galaxie gearbox - high power density, torsional rigidity When German drive systems specialists Wittenstein developed the Galaxie, they subjected drive concepts to a fundamental reassessment. The result: a brand new gearbox type.

The innovative drive system has not only proved itself to be “superior on principle” in numerous industrial applications, frequently making the impossible possible – it has also received scientific acclaim as an independent gearbox generation.

Its unique kinematics enable virtually full surface contact during power transmission, meaning that the compact Galaxie drive systems and gearboxes achieve previously inconceivable performance data. These include extremely high torque density, torsional rigidity, smooth running, positioning accuracy and completely backlash-free operation.

The innovative core of the new Galaxie drive system is the almost full surface contact during power transmission. This gives a tooth contact surface that is 6.5 times larger compared to conventional involute teeth with typical linear contact. The gearbox is the only

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one of its kind in the world to guide a large number of individual teeth along an internal ring gear.

The modular portfolio with four variants and fives sizes is now even more versatile with a new size available. The new Galaxie D Drive System in size 085 is designed for use in axes with very high compactness and precision requirements. It also particularly targets applications where high torsional rigidity and freedom from backlash are called for rather than torque.

Even in this compact version, the Galaxie D is still superior on principle. Compared with a strain wave gearbox with approximately equivalent performance, it delivers three times better torsional rigidity – and one and a half times the maximum output speed. www.treotham.com.au

Reinvent how you manufacture with RenAM 500Q

1 × laser

2 × lasers

RenAM 500Q is Renishaw’s new quad laser AM system. It features four high-powered 500 W lasers, each able to access the whole powder bed surface simultaneously.

RenAM 500Q achieves significantly higher build rates without compromising quality, vastly improving productivity and lowering cost per part.

• Full field of view for all lasers for optimum production efficiency • Enhanced gas flow to provide consistent high quality processing • Faster turn-around between builds with improved automated powder and waste handling systems

For more information visit www.renishaw.com/renam500q

www.renishaw.com

4 × lasers

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PRODUCT NEWS

Bucher Municipal passes ISO 9001 audit with no spreadsheets Bucher Municipal is one of the five core divisions of the global industrial group Bucher Industries, and is today recognised as the leading provider of equipment to the Australian waste industry.

The company boasts an impressive product range including side, rear- and front-loading refuse machines as well as compact/truckmounted road sweepers, vacuum tankers, and stationary and transportable compactors. Every Bucher machine is applicationengineered, manufactured in Victoria, and supported by a passionate after-sales support team that operates 24 hours a day, 365 days a year. Jason Tisbury is the Quality and Continuous Improvement Manager at Bucher. His role entails looking after all of the quality systems, as well as managing a team of quality inspectors and quality officers to maintain Bucher’s quality practices on a day-to-day basis.

In 2013, when Tisbury started at Bucher, one of the first things he noticed was the company didn’t have defined or properly controlled processes for undertaking a quality inspection.

The Quality Assurance team would go to the completed vehicle, they would have a pen and a piece of paper and they would go through the truck, taking photographs of any faults they found. They would then write those faults down on the piece of paper, hand it over to a team leader or production manager, who would fix the fault and tick it off the piece of paper. Once a vehicle left Bucher, they had no real record of the faults found and fixed, and to show the unit had been thoroughly tested. These pieces of paper were then handed over to an employee, who would spend time uploading the information into a spreadsheet.

“It was second-hand information, it was a long process, and it was obviously prone to human error,” says Tisbury. “Bucher Municipal started dreaming about having one platform, which would cover the quote stage right through to handing the keys over to the same client.” Tisbury worked with eBMS, the creators of Nimblex Software, to implement a fully automated software solution. Once Nimblex was approached, it was only a matter of three months before Bucher was live with its QA solution. One of the team members is always saying to Tisbury: “It just does everything.”

Tisbury is also adamant that “We haven’t found a single part of our business that it can’t help us with.”

Bucher has moved away from relying on spreadsheet registers, paper forms and old database technology by embracing Nimblex.

After recent discussions with Tisbury about how Nimblex can help businesses with ISO accreditation, he shared the following quote from Bucher’s recent 9001 upgrade audit to the new standard: “The single biggest improvement you’ve made as an organisation in the last 12 months is the implementation and functionality of your Nimblex system to manage your Quality Management System, records and production processes.”

Since 2010, Nimblex has been helping businesses with the implementation of management software that is more efficient, cost-effective and less complex. Nimblex configures the software without the need for writing code, long lead times and big budgets, to fit around any organisation’s way of working. Companies including Bucher Municipal, Twinings, Jayco, Orora and Nexans Olex trust Nimblex to digitise their processes and workflows. www.getnimblex.com

Seco replaceable-end roughing cutters add flexibility to long-reach milling Seco Tools has expanded its popular family of T4-12 helical milling cutters to include five new cutters for economical and versatile roughing and semi-finishing operations.

The addition of three metric and two imperial sizes makes Seco’s range of long-reach, replaceableend tangential helical cutters the industry’s most complete, spanning diameters from 40mm to 100mm.

Designed specifically with aerospace manufacturers in mind, the new long reach cutters with HSK-100A back ends optimise side-milling operations. With replaceable ends, the cutters allow for custom solutions

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if needed and the capability to replace the first row of pocket seats without replacing the entire system.

The cutters excel in applications with sticky materials such as stainless steels and high temperature alloys.

The high-positive, free-cutting insert geometries and grades boost tool life, while the tangentially mounted multi-edged inserts enable efficient chip flow and provide stability. www.secotools.com

PRODUCT NEWS

Fourth-gen SLM280 printer launched SLM Solutions Group has released the SLM280 2.0, the fourth generation of the 280 line of metal 3D laser printers.

Full range of lasers, systems and automation for OEM’s and end users

Available in several laser configurations that can rapidly increase the speed at which the machine scans the powder-bed, users can choose between single optics (1 x 400W, or 1 x 700W), dual optics (1 x 700W and 1 x 1000W), and twin optics for increased build speed (2 x 400W or 2 x 700W), with an 80% higher build rate achievable depending on how the component parts are arranged.

According to Stefan Ritt, Vice-President – Global Marketing and Communications at SLM, the company has made significant development towards improving machine performance in terms of the gas flow: “We’ve done a lot of work on the gas flow. The machine build chamber now has sintering side plates that diffuse the gas flow and avoid turbulence inside the chamber safeguarding an even quantity of powder disbursement and quality of the build.”

Quality assurance is a key feature of SLM machines with the company’s own software extending the performance scope with Melt Pool Monitoring (MPM) available on-axis tool for visualizing the melt pool during the process as well as Laser Power Monitoring LPM. These features are optional, giving users choice to support individual process parameters of their design specifications.

The SLM280 2.0 also offers significant safeguards in powder handling, with powder transport, sieving and storage taking place in a closed system with an inert gas atmosphere. When titanium is being used, contactless powder handling ensures maximum work safety.

The build envelope in the SLM280 2.0 is 280mm x 280mm x 365mm, providing adequate space for part production, but development is underway on a 600mm x 600mm SLM Cube machine with a minimum of 12 lasers, on track for release by the end on 2019. The Group recently released figures showing a record 217 machines ordered in the fiscal year of 2017-18, 20 of which will go to China.

SLM Solutions has also entered a partnership with Kevin Czinger, Founder and CEO of Divergent 3D, where an SLM 500 is being used to produce a majority of Divergent’s concept car using different metals for different parts of the car - arriving at a ‘printed skeleton’. www.raymax.com.au

2kW Fiber laser – twin 3m x 1.5m table 16mm Mild steel, 6mm Stainless and Aluminium

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Factory 8, 17 Keppel Drive, Hallam VIC 3803 AUSTRALIA T: (03) 9796 3055 • E: sales@industriallaser.com.au

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PRODUCT NEWS

Glass bottle redesigned with confidence using clear SLA 3D printing Packaging redesigns are a serious undertaking. On the marketing side, changes are visual and emotional; on the manufacturing side, changes cost money.

Before making the investment to overhaul its glass bottle tooling systems, the maker of James Boag’s Premium Lager needed to know an update to its bottle would not be change for change’s sake. It needed to be sure the new bottle would look good and be well received by customers. Ideally, this confidence would come before spending major time and capital on the project.

As the supplier of Boag’s bottles, Orora had skin in the game to validate the design quickly and accurately. Orora’s Innovation & Design team put wheels into motion by contacting 3D Systems On Demand Manufacturing, a long-time partner, to develop a state-of-the-art 3D printed prototype. Keeping Boag’s existing supply chain processes top of mind, a new-look bottle was designed to comply with the manufacturing infrastructure already in place to help avoid expensive and time-consuming changes.

To get Boag’s buy-in on the new design, a credible appearance model was needed for evaluation. To be convincing, the 3D printed models needed to have the same clarity and hue as glass as well as the same in-hand heft. 3D Systems’ experts accounted for weight disparities by adjusting the interior wall thickness of the design file based on the density of the selected stereolithography (SLA) resin, and then got to work on colour-matching to achieve the iconic green of the classic Boag bottle. Using 3D Systems’ leading SLA 3D printing technology and VisiJet SL Clear resin, 3D Systems’ On Demand Manufacturing experts printed four SLA prototypes.

“Successful lab testing of 3D Systems’ clear materials verify they are the best solution for transparent 3D prints,” said Dr. Don

Titterington, Vice-President of Materials R&D, 3D Systems. “Used in a variety of demanding applications, clear materials deliver highperforming, cost-effective choices for functional, transparent prototypes.”

Once printed, the bottles were put through an in-house finishing protocol to bring them to final product quality. This included wet and dry sanding, applying a surface tint, and a final clear coat to deliver a glass-like sheen.

With just a few simple steps, clear SLA prints can be transformed with incredible results.

According to Tracy Beard, General Manager for 3D Systems’ facility in Lawrenceburg, Tennessee, thousands of clear parts are produced at the facility each week: “The materials are versatile enough to be quickly finished and tinted for perfect prototypes.”

The appearance models were ready within a week, allowing Orora and Boag to quickly transition the new design to customer trials and gauge the public’s reaction. They filled the 3D printed bottles with liquid, outfitted them with a label and cap, and put them in a shop for monitoring. Feedback from these in-store trials indicated that the new design was a hit, clearing the new design for production.

“The new James Boag’s Lager bottle has set a standard within Orora for the way packaging design and 3D prototyping can come together seamlessly with short notice,” said a spokesperson for Orora’s Innovation & Design team. “It’s the sort of technology innovation that’s giving us a critical edge when it comes to developing best-practice bottling design and manufacturing solutions for our customers.” au.3dsystems.com

Reliable thread turning in tight spaces Walter completes its range of MX grooving inserts with the A60 and AG60 geometries for small to medium pitches.

Just like the existing MX geometries (CF5 and GD8 for all grooving and parting off tasks, RF5 for grooving and copy turning), the A60/AG60 inserts are also designed with four cutting edges.

The geometries are made for creating 60-degree partial-profile external threads in a wide range of pitches (0.5mm to 3.0mm) and are particularly suited to thread turning in tight spaces, like near a shoulder or counter spindle. In addition, the system offers general advantages like excellent cost-effectiveness or the ability to use all inserts universally with one toolholder on the left and right.

The MX system is suitable for all materials and enables insert widths between 0.8mm and 3.25mm and cutting depths of up to 6mm. One special feature is the design of the insert seat: Due to the self-aligning tangential clamping, the insert is pressed against the contact points when the screw is tightened.

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A special dowel pin helps with accuracy of fit and simultaneously makes it impossible to mount the insert incorrectly. That results in a high degree of dimensional stability and repeat accuracy.

The fact that the insert contact surface is not ground when creating the cutting edge width, and the entire insert thickness is therefore maintained, also contributes to the high stability of the MX system. Special profiles outside the standard range are offered by Walter from ten pieces and are available via the Walter Xpress service within four weeks. www.walter-tools.com

The trusted builder for manufacturers NATIONWIDE

DuluxGroup Merrifield Facility: Australia and New Zealand’s largest coatings factory.

As one of Australia’s most respected industrial and commercial builders, Vaughan Constructions provide valuable expertise with a visionary solution. Two of every three projects we develop are from returning customers, proving our commitment to building customers for life.

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INDUSTRY 4.0

Industry 4.0 keeps making headlines as the digitalisation of manufacturing picks up pace.

But what does it actually mean for Australian manufacturers? By William Poole.

Drive north from Melbourne CBD for about an hour, and you could until recently have been forgiven for not noticing Merrifield at all. It won’t show up in a search on Google Maps; switch to satellite view and for the most part it’s just empty, green fields. It doesn’t have a Wikipedia page. Or a pub. But all that is set to change.

DuluxGroup’s new factory in Merrifield .

The area is currently undergoing an ambitious development program, with plans to build homes for up to 7,000 residents, retail and leisure facilities, and a business park projected to create 20,000 jobs. And in addition, Merrifield is now home to one of the most advanced manufacturing facilities of its kind, rated among the top factories in the world implementing the principles of Industry 4.0.

DuluxGroup’s new Merrifield site is the biggest water-based paint plant in the Southern Hemisphere, occupying a footprint of 22,000sqm – larger than the playing area of the Melbourne Cricket Ground (MCG). When it reaches full production, the $165m facility will produce around 75 million litres of paint a year, with the creation of more than 60 jobs. The plant has been in operation since February, and according to Kevin Worrell of Dulux, it’s already surpassing expectations.

“We’re seeing around about a 25% energy efficiency over what we designed for,” says Worrell, who worked as project lead in the development of the new plant. “This factory is really, really agile.

We’ve got the ability to go down to as small as one pallet of paint in a batch, to 30,000 litres of paint in a single batch, and all the stops in between. That agility gives us an advantage over the opposition.”

Dulux’s Merrifield plant allows complete horizontal and vertical integration of the manufacturing process via end-to-end digitalisation.

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HEADING

That agility is the result of an extensive collaboration between Dulux and Siemens Australia, aimed at achieving the complete, end-to-end digitalisation of all processes at the Merrifield site. For Dulux this enables a high degree of flexibility in meeting the current and future demands of its customers, while lowering the cost of production by slashing waste. It also provides Dulux with access to an unprecedented mass of data, which will allow it to continually refine and optimise its products and processes.

Dr Nico Adams, Director of Swinburne University’s Factory of the Future advanced manufacturing facility.

The facility has definitely put Merrifield on the map. In April, Siemens showcased the project at the Hannover Messe international trade fair in Germany as an example of the world’s best practice in Industry 4.0 manufacturing. For Worrell, it represents a model for Australian manufacturing to emulate.

“My message to Australian manufacturers is ‘Get on board’,” he says. “This makes Australia competitive again. We don’t need to be cheap labour, we need to be smart labour, and that’s what these plants will give us. Everybody’s got a smile on their face. People are happy to work here!”

So what exactly is Industry 4.0?

For Dr Nico Adams, Director of Swinburne University’s Factory of the Future advanced manufacturing facility, Industry 4.0 can be defined in two ways.

“You can look at Industry 4.0 as a set of technologies, none of which are new,” he explains. “They’ve been around for 20 years – autonomous robots, Cloud computing, data analytics, additive manufacturing, and so on. What’s new about Industry 4.0 is that these technologies have become really cheap and really accessible, even to SMEs. And because of that they have now started to impinge on each other. They are interacting. And it’s in that interaction where the second definition lies. Industry 4.0 is really a way of fundamentally changing the way in which you create and capture value.

“In a classical manufacturing paradigm, for example, I make an air-conditioning unit, I sell you that air-con unit, I put a service contract around it so if it breaks I come out and address it, and our transaction is done. In a digitalised, Industry 4.0 world, I’ll make a contract with you that I’ll keep your house at a certain temperature range all the year round. To do that, I’ll come into your house; I’ll put in sensors to understand the temperature your house is at, and the temperature of the environment around your house; I’ll put in insulation; I’ll put in the air-con unit I continue to manufacture. But you’re not paying for any of this. What you’re paying me for is that service: keeping the house at a certain temperature all year around.

Continued next page

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INDUSTRY 4.0 The Factory of the Future facility at Swinburne’s Hawthorn campus.

Continued from previous page

“So you’ve got a fundamental business model shift, from selling an object to in essence selling the function of an object. What enables that is that technology set, but what it’s leading to is a profound change in the way you create and capture value, and to me really, that’s the interesting definition of Industry 4.0.”

Adams highlights several companies successfully putting these ideas into practice. Rolls Royce has moved from selling aircraft turbines and engines, to providing an uptime guarantee of flight hours for its clients’ aircraft fleet. Michelin has equipped the truck tyres it makes with sensors so it can predict problems before they arise, reducing downtime for its customers, and thereby saving them money. For companies such as Rolls Royce and Michelin, what this brings is ‘stickiness’ – with outcomes like these, clients are unlikely to change suppliers.

Adams’ favourite example is Trumpf. The German manufacturing equipment producer began its Industry 4.0 journey when it started putting sensors into the machines it made and connecting them to the web, enabling Trumpf to monitor them and extract data about their performance. Ultimately this allowed Trumpf to move from an outright purchasing model – where you spend several hundred thousand dollars and get a laser cutter – to a lease model or a payper-use model.

“For smaller companies who can’t afford massive investments in equipment, that’s a game-changer,” says Adams. “But then Trumpf realised ‘Our connected equipment has to sit within an ecosystem of other equipment in the factory. We need to orchestrate those interactions somehow’. So they developed a manufacturing execution system, which they then commercialised through a software company called Axoom. So here’s a manufacturer becoming a software company.”

But it doesn’t end there. Some customers still wanted to buy equipment outright, but were finding it increasingly difficult to access finance. So what did Trumpf do?

“They applied for a banking licence. So now we’ve got a manufacturer who’s also a bank, and by being a bank they can back their own customers. And how do they de-risk the operations of the bank? Through the data insights they get from the connected equipment and the platform. So this is starting now towards building up manufacturing platform ecosystems . And personally I find that the most thrilling example.”

A common misconception about Industry 4.0 is that it is a phenomenon confined to giant corporations like Toyota or Apple (or Dulux), with vast sprawling factories staffed entirely by robots, and that it would not be applicable to the small and medium-

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sized enterprises (SMEs) that form the backbone of Australian manufacturing. Adams is quick to dispel this perception, pointing to a number of Australian businesses who are implementing Industry 4.0 through bottom-up experimentation.

One is Sutton Tools, who brought in a couple of research students and some cheap electronic components to extract data from the CNC machines in its workshop, enabling better predictions about the performance of those machines and the quality of the cutting tools they were turning out. Another example is Tradiebot Industries, a start-up that recently started a project with Swinburne, funded by the Innovative Manufacturing Cooperative Research Centre (IMCRC), to develop a system that automatically works out how to repair impact-damaged car bumpers by combining robotics, 3D scanning and additive manufacturing.

Britannia’s digital revolution Another Australian manufacturer that has begun its own implementation of Industry 4.0 is Britannia Metal Industries. Founded in South Melbourne in 1941, the company initially established itself as a supplier of sheet metal components to the plumbing industry, but over the subsequent decades it evolved into a jobbing shop for a diverse array of industrial clients.

Today Britannia is one of the longest continuously operating sheet metal shops in Melbourne, with around 50 staff at its plant in Clayton. The company provides design and manufacturing solutions for a client base primarily consisting of OEMs in sectors ranging from medical devices, heating & cooling, and electronics, through to trucks, caravans and commercial construction.

One reason for Britannia’s enduring success has been its ability to remain ahead of the pack by consistently investing in the latest state-of-the-art equipment. An early adopter of CNC machinery, it bought its first CNC brake press in 1987, its first CNC punching machine in 1988, and its first laser cutter in 2001.

“It’s been a characteristic of the business from the early days that we continued to look internationally for trends and movements in processes and equipment,” says Martin Solomon, General Manager - Sales at Britannia. “When we bought the first punching machine, that machine was one of the first handful of automated punching machines in Australia. From then on, we have continued to invest in equipment for the future of ourselves and our clients.”

The latest step in Britannia’s technological evolution lies not so much in the acquisition of individual machines. Instead, it involves the processes by which those machines communicate with each other, and the channels via which each job moves through each stage in the manufacturing process.

INDUSTRY 4.0 Britannia Metal Industries’ facility in Clayton, Victoria.

“Our business is high-mix, low-volume ,” explains Martin. “Last year we did in the order of 12,700 different parts, all under ISO 9000 (quality standards) and part revision control. That requires a lot of effort and used to take a mountain of paper. Traditionally our work is cut, fold, weld, insert, powder coat, assemble, pack and ship, so you have to transfer all the information for customer requirements etc, from sales, through engineering to all those processes. And the traditional pathway for that is the drawing and paper job traveller.”

For smaller job shops performing comparatively simple jobs, the job traveller might simply comprise a routing card and a drawing of the part – a single sheet of paper. For the sort of more complex work Britannia undertakes, where jobs often involve complicated assemblies of numerous components, the job traveller is significantly larger – as Martin describes it, “an encyclopaedia”. This meant shopfloor staff were often spending more time on paperwork than actually making products. Britannia saw an opportunity to streamline this.

“We started with a young tradesman who was an employee here working part time while completing an engineering degree,” says Martin. “This guy had the opportunity to see both sides of the business, and he had a flair for IT. He and his Production Manager put together a proposal to automate some parts of the process, and free up time for the guys to be able to do what we wanted them to do – putting weld metal down or laser cutting parts – not shuffling paperwork to find the next operation. After a couple of discussions with senior management, it seemed the project was viable and the potential for a win-win was enormous.”

Over the subsequent two years, Britannia has converted itself into a semi-paperless environment. On the shopfloor each employee has a terminal at their place of work, allowing them to operate with no physical documentation. The job traveller hasn’t completely disappeared, but it’s shrunk from the encyclopedia of old to one or two pages.

“The only reason we still have those couple of pages is to do with the office,” Martin adds. “The factory doesn’t want it at all. So there’s a transition in place where the paper will completely disappear over the next couple of months.”

One striking aspect of the project has been that it hasn’t really entailed the introduction of any elaborate new technology. Instead it involved streamlining the utilisation and interconnection of existing systems such as ERP, CNC machinery and CAD/CAM software, so they work together more efficiently.

“It’s sad to say, but we had all the technologies already, we just didn’t know how to join them together,” says Martin. “The reality is that it’s all about application. It’s about seeing the possibilities of

Martin Solomon (left) with members of the Britannia team.

joining several dots together. We always had an ERP system, we always had electronic storage of drawings, and we always had an electronic version of the routing card, which enabled us to print the physical version. We had all these bits but we never had the foresight to join them together.”

On Britannia’s shopfloor, the impact is clear. At each machine, jobs are called up on screen and transferred direct to the CNC control; under the old, paper-based system, the operator would have had to stand there inputing details by hand, leaving expensive equipment waiting idle in the process. While the company has yet to quantify any definitive returns in terms of productivity or efficiency – perhaps understandably, given that the project is still a work in progress – but Martin acknowledges there have been demonstrable benefits.

Management has improved visibility over each job as it moves through the manufacturing process, and staff have voiced their approval of the new system. So what’s next? Martin concedes that progress on further digitalisation has lately become slightly stalled, but this ironically has been another by-product of Britannia’s transition to Industry 4.0. The company was recently bought by the Design Group, and one factor that made it such an attractive acquisition was the paperless system and processes it had put in place. And now, having established those structures in its own operations, the team at Britannia is now helping its new parent organisation implement a similar transition. For Martin, the key lies in realising that the concepts surrounding Industry 4.0 can be adopted by any manufacturing business.

“I think the biggest part is to see that you can actually do this,” he says. “This wasn’t something out there in Elon Musk land, this is something that any business can do, probably with the software they’re running now. But you have to have people involved in the process to be able to see the wood for the trees and say ‘Yes. You used to do it that way, and it’s fine, but there is another way’.”

Bringing in outside expertise What’s notable about Britannia, as well as Sutton and Tradiebot, is that each case hinged on some form of collaboration with universities or research bodies. Doctor Nico Adams believes this is crucial, as it allows the companies to de-risk the process of developing what are often quite untested ideas.

“You almost need to be a bit of a scientist within your company,” he explains. “You need to follow a hypothesis and experiment to see whether you can prove the hypothesis – in this case a business benefit or outcome. Critical to that is how you de-risk the experimentation, and that’s exactly where university-industry collaboration comes in.

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Swinburne is putting Industry 4.0 principles into practice with an ongoing drive to digitalise processes across the organisation.

“Universities are repositories of really expensive, state-of-the-art equipment that companies can tap into to develop new products and processes. There’s a lot of expertise and people that companies can tap into, at almost no cost to them.

In Swinburne we’ve got really short internships, or we can place someone for 12 months in your company. In many ways getting new innovations and technology out of universities into companies is often via people in internships. Internships are where you test a wild idea and if it fails it doesn’t matter so much because the cost is relatively low.

“Also don’t forget that universities are really good at leveraging money. There’s a lot of funding schemes out there to support manufacturing companies to undertake industry-led research. As companies develop ideas, we can actually work with them to find the right funding.”

Nonetheless, Adams stresses the importance of having a clear objective in mind: “When people come here and say ‘How do I get into Industry 4.0?’, we tend to change the conversation. The first question we always ask is ‘What’s the business outcome you want to create?’

Because it’s not about the technology. In Industry 4.0 the technology is only ever a vector into integrating business outcomes.

So be really clear on what the business outcomes are. What’s the question you’re seeking to answer? What’s the hypothesis you currently have?”

As a university with a strong background in manufacturing, Swinburne is committing significant resources to Industry 4.0, via the Factory of the Future in particular, but also throughout its Innovation Precinct and the wider university. As well as assisting manufacturing companies in taking advantage of the digital economy, it’s doing a lot of work in preparing the manufacturing workers of the future. This encompasses both training students who have yet to enter the workforce and retraining existing workers, but it also entails equipping people with the capability to constantly adapt and update their capabilities in a highly dynamic, ever-changing market for skills. The university is also putting Industry 4.0 principles into practice in its own operations, with an ongoing drive to digitalise processes across the organisation.

“Digitalisation changes the way in which we do business. So Swinburne has become really an Industry 4.0 university. And we are investing significantly: we have recently announced an Industry 4.0 Testlab around the development of a new carbon-fibre 3D printing process, led by Professor Bronwyn Fox.”

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Originally a chemist by training, Adams’ first forays into the world of Industry 4.0 began at Cambridge University in the UK. He began building information systems to deal with material science data, after which it was not a big step from materials informatics to manufacturing informatics. This in turn led to a job offer from CSIRO, where Adams worked with its Manufacturing and Data61 data research arms. He also served as Programme Lead for Industry 4.0 and Digital Transformation at the IM CRC, before joining Swinburne in February.

A pivotal experience came while he was at CRSIO, when Adams and a colleague were approached by the Federal Department of Industry, who’d been working with manufacturing companies in Queensland: “One company they looked at, when they got a purchase order, would have a fully trained engineer sit there and retype it by hand into an ERP system. This activity alone cost the company about 1.4 % of its turnover. And they had margins of 10%, so 14% of the profit has just evaporated.”

Adams and his colleague initially thought the problem would be confined to just this company, but as they dug deeper they saw it replicated again and again, across the manufacturing spectrum. Extrapolating that productivity loss across the entire industry, the cost to the Australian economy is likely to amount to billions of dollars.

“That’s really when there was the realisation that we’ve got to do something about this, and how this whole thinking about digitalisation in manufacturing started,” he adds. “And some of the technology we were working on for materials informatics was actually applicable to that problem.”

Adams argues this issue surrounding productivity proves that Industry 4.0 is not just an optional measure that Australian manufacturers might consider adopting, but a prerequisite – something we need to embrace if we are to remain competitive globally. This is backed by a 2014 survey

by PricewaterhouseCoopers, which found that by 2020 German manufacturers will have digitalised roughly 80% of their value chains. For Germany this would yield a productivity increase of roughly 18%.

Given the gulf that already exists between German manufacturing and its international rivals, this is a daunting prospect. But for Adams, the goal for Australia should not merely “keeping up with the Joneses”, but to truly capitalise on the opportunities presented by Industry 4.0.

“What I hope the Australian manufacturing sector will do is to take the opportunity to come up with significant new business model innovation,” he says. “We’re never going to compete on mass production.

We’re always going to compete on manufacturing things with highly differentiated value. It’s mass customisation, it’s lots of one object for markets of one.

But even more so, I hope that we’ll take that and we’ll push it further and come up with significant innovative new business models that create that stickiness, that scalability, that you need to just participate in global value chains in these days. For me this is all about business innovation.” www.duluxmerrifield.com.au www.siemens.com www.swinburne.edu.au www.brit.com.au

Bosch Australia Manufacturing Solutions Leading User Leading Provider

I4.0 describes the networked Manufacturing of the future. p The real opportunity Bosch can offer you is to provide it’s experiences from which you can take advantage from. p Open standards are essential to integrating equipment and software of various suppliers into connected concepts. p Real-time analysis of relevant manufacturing and logistics data.

Contact us for your path in the i4.0 journey M (61) (0) 434 185 329 T

(03) 9541 5086

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john.croft@au.bosch.com

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Digital strategies behind the ‘Smart Enough’ Factory Dr Steve Dowey of Sutton Tools explains his company’s approach and why becoming a ‘Smart Enough’ Factory can be a more feasible solution for all but the largest manufacturers.

There’s a lot of talk these days about Industry 4.0 and Smart Factories. However, many manufacturers with a large burden of legacy systems – and especially smaller-sized organisations – see the vision of the Smart Factory as too complicated, and therefore unachievable in the short-to-medium term.

In April 2017 our Prime Minister’s Industry 4.0 Taskforce entered into a co-operative agreement for information-sharing with Germany, including the development of global Industry 4.0 standards – with the Advanced Manufacturing Growth Centre (AMGC) co-ordinating work in Australia. Germany’s Platform Industrie 4.0 is an admirable initiative, but many German companies are relatively large – both in terms of revenues and people – and therefore have the turnover and the economies of scale to justify complex new digital manufacturing strategies, at least on new process lines.

As an Australian manufacturing company – albeit with a global customer base – we at Sutton Tools see many of the customers with whom we work running smaller operations. This reflects OECD data that shows that around 90% of Australian manufacturers have fewer than 20 staff. This led us to consider how smaller businesses can effectively adopt an understandable and scalable digital strategy, without taking a whole-of-business approach. Our solution is the Smart Enough Factory – a model we’re following ourselves.

The Digital Triangle strategy framework Many will be aware of the Joiner Triangle, introduced by Dr Brian Joiner, who was a student of the influential US engineer Dr W Edwards Deming. Adopted by Ford, the Joiner Triangle provides a framework for implementing quality improvement. It encompasses three key factors – Quality, Scientific Approach, and All One Team – and can be regarded in a similar vein to the Fire Triangle of Heat, Oxygen and Fuel, where if one is lacking, the fire goes out!

At Sutton we’ve built on the Joiner Triangle to create a Digital Triangle, as a strategy framework for creating the concept of a ‘Smart Enough’ Factory:

on the application of the strategy. Lean principles include elimination of waste. The Digital Triangle strategy is an alternative model to the Reference Architectural Model Industrie 4.0 (RAMI 4.0) model.

What is ‘Smart Enough’?

I took ‘Smart Enough’ from the concept that ‘Good Enough is Good Enough’. It’s an enabling philosophy developed for SMEs to get into Industry 4.0, in that it looks for practical factory solutions based on low-cost technologies. The biggest concerns expressed about Industry 4.0 manufacturing are based around its cost, security and the skills required. Smart Enough doesn’t fix any of these roadblocks, but instead it seeks to bypass them by deploying: • Rapid Application Development (RAD) tools, typically low code – to address the skills issue.

• Low-cost edge devices and sensors linked to a wireless network and deployed locally (not in the cloud) to mitigate latency and security issues.

We also deliberately focus on management data and not traditional control applications. In a Smart Enough Industry 4.0 deployment the control loop is closed by the operator or manager and not the system, mitigating the security issues that closed loop control introduces.

We also referenced Lean Manufacturing principles in building our Digital Triangle – and that makes it as relevant to smaller organisations as global behemoths. The Lean Manufacturing discussion focuses

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Whether your processes are using CNC systems or not, you can still overlay a wireless sensor network to gather the data you need from your machines in order to gain transparency and immediacy of process information (one of the goals of IoT). When a machine state changes, the event triggers a wireless message.

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Combined, this offers even small operations a reliable factory visualisation tool. Simple, basic data can greatly enhance management control and productivity. You can monitor utilisation against your targets, predict whether you’ll make them then see what you need to do if you won’t. A lightweight overlay, collecting only the management data you need to control your manufacturing

operations, is a cost-effective Industry 4.0 digital strategy that even small-scale manufacturers can deploy.

Dr Steve Dowey has been Technology Manager at Sutton Tools since 2010. From 2003 he was Technical Manager at Surface Coatings Technology, a Sutton Tools subsidiary. www.suttontools.com

t is constructed of three

Reach high. Think differently. Invent Our thriving culture of innovation delivers a competitive advantage and we are extremely proud of our market leading position. Operating in over twelve countries and with customers in over fifty other countries our products touch almost everything you touch in your daily life. From smart phones to the car you drive to space exploration, ANCA is helping solve every day problems to extraordinary challenges. Visit anca.com/careers to learn more or follow us on Instagram and LinkedIn to stay up to date with ANCA news. linkedin.com/company/anca instagram.com/ancacncmachines

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Unlocking the potential of AI for manufacturing Although Australian manufacturers are keen to join the Fourth Industrial Revolution through technologies such as machine learning and artificial intelligence (AI), a new report suggests just one in ten are embracing automation, raising questions over how ready organisations are to actually implement the next phase of digital transformation. By Jeff Nygaard, Executive Vice-President, Global Operations at Seagate Technology.

Last year the Federal Government initiated an Industry 4.0 Taskforce in co-operation with Germany to develop global standards, support manufacturers, examine security of networked systems, and help the transition though education and training. A timely step, since that same report estimated that, if Australia boosted the pace of its efforts around automation, the country could boost productivity and national income to the tune of up to $2.2 trillion by 2030.

According to APAC research sponsored

by Seagate – Data Pulse: Maximising the Potential of Artificial Intelligence, the majority (88%) of organisations in Australia believe they need to implement AI to stay relevant in the near future, with 86% planning to adopt more AI solutions in the next 12 months. However, more than half still face hurdles when it comes to understanding and applying AI within their business, with 63% reporting that their organisations are unsure of where to start. They are aware more needs to be done to maximise the potential AI brings, with a staggering 92% agreeing that more investments should be made to understand the value of AI. Perhaps that is why Australian businesses appear to have a healthy scepticism or wariness about the potential impact or benefits of AI. The Data Pulse study reported that 12% of respondents don’t think their organisations need to adopt AI (compared with 7% APAC-wide), and 11% don’t think it will drive productivity (vs 4% in APAC). The results place Australian respondents at odds with the general regional view. On the upside, it also places those manufacturing organisations who explore and embrace AI and automation in the box seat for operational success.

There are many steps in the journey to AI deployment, and the Data Pulse study identified several that were considered most important, particularly for manufacturers. These include: • Improving IT infrastructure. Across APAC, one in five organisations believe they are not ready to handle the increasing data streams with their current IT infrastructure. In Seagate’s experience you need robust infrastructure with hardware

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and software platforms able to help you gather and manage the huge amounts of data that come from automation.

• Addressing security concerns. Data security is high on the infrastructure priorities list, with 94% agreeing it is critical for AI. • Boosting data management capabilities. An increase in AI implementations requires robust data storage solutions, according to 95% of APAC respondents. 81% of Australian organisations have already consciously invested in data storage to ensure readiness for AI. So how to move forward? There are three main areas to address.

Firstly, when exploring where and how to get on board with an AI-enhanced future, dedicate time and effort to understanding how it will benefit your business. Explore all the possibilities – from Internet of Things (IoT) to machine learning and general applications – and build a knowledge base of the opportunities for your organisation. With knowledge comes power, putting you in a position to build a clear strategy and direction with an economically prudent approach to embracing AI’s potential.

Secondly you need to dedicate resources and investment to build an IT infrastructure that will support your AI endeavours. The Data Pulse study found that in Australia, the majority of the organisations (75%) invest moderateto-large portion of man-hours and budget to AI. However, close to 20% of respondents believe it is not enough.

Without strong foundations, your best efforts will go nowhere.

The final critical area is securing the leadership team’s commitment to your AI journey. Success will require involvement of many different areas of your business and it’s important that you have all on board with you.

The road to AI may look challenging, but the opportunity for success for Australian manufacturers is strong. Take the first steps early and the future could be yours. www.seagate.com

INDUSTRY 4.0

Building Industry 4.0: Three steps to getting the IT foundation right Australia’s manufacturing sector is undergoing a period of seismic change as new, disruptive technologies and economic realities take hold and new markets emerge. Despite recent doom and gloom over closures, the industry is poised for a resurgence if it can quickly embrace innovation, diversification and market changes. It’s no wonder Industry 4.0 has moved to the centre of the conversation. By Keith Buckley, Managing Director for Riverbed A/NZ. A modern edge infrastructure replaces costly islands of IT in each location with a single platform that combines cloud networking technologies like SD-WAN, storage caching and high-performance computing, collapsing data into the data centre or cloud where it is 100% secure.

Application users still benefit from superior, local-like experiences at the edge, and all IT operations are managed from a central location to bring new levels of agility, performance, efficiency, and security to the business.

More than just a flashy catch-phrase, Industry 4.0 is a merging of trends and technologies that promise to reshape the way things are made. Its goal: make manufacturing faster, more efficient and more customer-centric and detect new business opportunities and models. The biggest challenge to embracing it: knowing where to start.

According to a recent study by Deloitte, while Australian executives are optimistic about the potential of Industry 4.0, few (2%, compared to 14% globally) are confident they’re ready to lead its implementation.

So, where’s a manufacturer to begin?

Just as the strength of a building lies in its foundation, so too does the successful implementation of digital technologies rely on its underlying IT infrastructure. If you skimp on either, and something fails, it’s not an easy fix.

A recent Riverbed survey of Australian IT decision-makers on the future of IT revealed that nearly all (99%) believe legacy network infrastructure will have difficulty keeping pace with changing demands of the cloud – this includes the cornerstones of Industry 4.0: the Industrial Internet of Things (IIoT), machine learning and artificial intelligence. In order for manufacturers to establish a firm foundation for Industry 4.0, it’s clear that a fundamental rethink of the networking – and of the tools used to monitor, measure and manage it all – is needed.

Step 1: Rethink old-school approaches to networking Though often overlooked, the network is an absolutely essential link in an organisation’s ability to successfully implement digital technologies.

However, traditional networking technology was designed long before the cloud was formed. While the world at either end of the pipes has changed dramatically, networks haven’t changed much since the 1990s.

As organisations embrace disruptive technologies and hybrid networks, add more users, applications and devices, and become increasingly mobile – legacy approaches to managing it all have remained much the same: hardware-

Step 3: Get an end-to-end view of performance centric, manpower-intensive, rigid and error-prone. As a result, these networks have the potential to be a major roadblock for Australian manufacturers in their drive towards transformation.

Enter the future of networking: SD-WAN, or software-defined wide area networking, a set of capabilities that enables the network to be more flexible and efficient – especially as businesses look to connect offices, workers and “things” to the cloud and for hybrid networks. SD-WAN supersedes the managing of individual network devices using arcane command line interface commands and scripts, automating some of the most complex network tasks. In addition to driving cost-savings and operational efficiency, it helps make organisations more agile, transforming the way they’re able to innovate.

Step 2: Modernise the edge Branch offices and manufacturing sites are where business gets done, but they’ve become an expensive roadblock to digital transformation due to limited IT expertise, islands of aging infrastructure, inefficient operations, unreliable application performance, and massive volumes of unprotected data.

The rise of IIoT and Industry 4.0 will only make these challenges become more pronounced. The explosion of data coming out of a new, highly-connected environment will overtax legacy IT operations and expose the business to increased risk. All of this is creating a new focus for IT: “the edge”.

In the era of Industry 4.0, complexity threatens to reign. With apps, devices, and data coming from everywhere, the number of blind spots in the application delivery chain will increase exponentially. One glitch in the performance of a businesscritical supply chain app can cause a ripple through product delivery that grows into a wave crashing on the bottom line.

Now more than ever before, the performance of applications and the networks that deliver them are vital to technology adoption and value realisation.

And the key to delivering great app performance is understanding what is happening. This requires visibility into everything that impacts app performance – code, network, user experience – to detect and fix issues instantly. Visibility will help ensure it all runs as expected – that manufacturers can be agile and operate efficiently – and ultimately succeed in a highly competitive and rapidly changing marketplace.

Taking the revolution in stride All revolutions are disruptive, and Industry 4.0 is no exception. It poses risks, but it also offers tremendous opportunity: for new products and services, better ways to serve customers, new kinds of jobs, and completely new business models. Success in the digital era will require manufacturers to take this revolution in stride, embrace change and commit to a start. Focus on the foundation and get to building. www.riverbed.com

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Industry 4.0 would not be possible without intelligent sensors The Information Age for industry is getting off the ground. This world of enhanced efficiency depends largely on intelligent sensors. By Christoph Müller.

Sensors provide the senses for machines.

They provide the feedback that makes intelligent machines possible in the first place. Sensor intelligence focuses on one aspect of sensor technology: equipping machines with the ability to see, recognise and communicate intelligently. Intelligent sensors contribute the ability to classify and interpret information. This is characterised by intelligent signal processing, which derives the truly relevant information from large quantities of data.

This is why – in addition to the primary control system for machines and systems – information is provided for monitoring production systems and making it possible to detect faults. Transparency of processes and material flow produces additional potential for optimisation. Processes are becoming more efficient and cost-effective, increasing competitiveness.

As a driver of technology in Industry 4.0, SICK is already capable of presenting and implementing solutions to the four key challenges throughout the production levels: Quality Control at the sensor-and-drive level; Flexible Automation, at the machine level; Safety at the production level, and Track & Trace, at the corporate level.

Flexible automation: customising goods in the packaging process Maximum productivity with product variation down to a batch size of one is a central goal of the Industry 4.0 concept.

Manufacturing plants have to be flexible and adapt to what the individual customer wants. Due to high product diversity even as the batch sizes continue to decrease, intelligent components (smart sensors) have to be capable of adjusting and controlling themselves.

placement when measuring the length of the product, they notify the control system. The product is sorted out without the system coming to a stop. Also, the sensors provide data for maintenance, such as monitoring for fine particles to automatically implement measures that safeguard the packaging process.

Smart sensor solutions – using state-of-theart sensor technologies in combination with complete integration into the control level – focus heavily on decentralising certain automation functions to the sensor. This takes some of the load off of the control system and increases the machines’ productivity.

Safety: Robot protection using laser scanners

One example involves the final packaging of prepackaged batches with bottle sizes of 0.5 litres and 1.5 litres capable of being packaged in a system using detection of smart sensors with automatic format changeover. The sensors detect the product changeover and tell the control system that the system has to readjust so the right box can be set up, the bottles can be fed in, and the box can be labelled and shipped.

Sensor intelligence is a prerequisite for safe interaction between people and machines in the era of Industry 4.0. Safe laser scanners reliably monitor the hazardous area of stationary or mobile machines and systems, such as welding robots or automated guided systems. Protection of people is the top priority. If a person enters the area, the dangerous movement must be stopped safely. On established systems, people are protected, but production is stopped.

The changeover steps are listed on a monitor while the machine adjusts. The system keeps running automatically and does not have to be put back into operation manually. If the sensors detect an incorrect

In the future, smart sensors will be used not only to ensure the safety of people, but also to implement ever-increasing production specifications. Today SICK is already providing up to four simultaneous protective

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fields, thereby considerably increasing the ergonomics and efficiency of complex machines such as tire heating presses.

The digitally switching protective fields currently in use are being replaced with flexible ones. Flexible protective fields are automatically calculated during highly dynamic movements and adjusted corresponding to the hazardous areas of the robot. Commissioning is also made considerably simpler and faster thanks to smart sensors.

The optimum interaction of smart sensors and state-of-the-art machine designs increases the productivity of the machine and always guarantees the safety of the employees. The compact systems use an integrated swivel mirror as an optical radar to scan their surroundings in two dimensions and measure distances according to the time-of-flight measurement principle. This results in freely definable safety zones.

Track & trace: production and logistics chains grow together In an example from the automotive industry, comprehensive data acquisition performed directly at the vehicle makes it possible to identify a customised dream car throughout the production process up until delivery.

Using this track & trace process, it becomes clear how increasing product customisation can be implemented in the Industry 4.0 context. Right at the car body, the sensors detect which assembly steps have to be

INDUSTRY 4.0 to make the right decisions. This is the cornerstone of Industry 4.0: the seamless flow of data and information from the sensor to the control system and back.

From sensor to sensor intelligence SICK has always developed and built intelligent sensors. The company’s founder Erwin Sick worked out his vision of sensors with optical and mechanical precision.

Starting in the 1950s, he used his vision to create intelligent solutions that had never before existed, such as for safeguarding machines and monitoring emissions. Before long, advances in electronics allowed for miniaturisation of the devices and provided the essential driving force behind technology in automation engineering. introduced, making mix-ups impossible.

As a result, they ensure comprehensive transparency up until delivery.

Processing steps on the object are updated by rewritable RFID tags. Reading reliability is vital because any read errors could cause misdirection, mix-ups or production downtime. This is where RFID data cards – which can be attached to components or even integrated out of sight within them – are coming into play more and more. In practice, they have the highest possible availability. For example, they can withstand high temperatures on a painting line and can be reliably identified even once covered in paint.

Aspects such as transparency and traceability are playing an ever more important role for manufacturers because the variability in the production lines of large automobile plants is constantly increasing and assembly lines are seeing more and more variants built in parallel. Vertical integration is the keyword for track & trace.

Traceability of products during complex manufacturing and logistics processes is a priority for this integration. Production and logistics require transparent material flow so that production decisions can be made faster.

Transparency of the material flow based on RFID also plays a critical role in delivery.

Until the completed cars are ready to be transported to the dealership, they are kept in a large parking lot. But how do you find the car that still needs to go on the truck?

Every single car is made-to-order. No two are alike. Thanks to information stored on a RFID tag, the customer’s dream car can be located and loaded up for transport quickly.

Quality control: reliable data acquisition and tracking The future holds continued increases in the speed that packages are transported.

Distances between the packages are

becoming smaller. This means the quality of products is even more important. To accomplish this, the package data is scanned on the conveyor belt and read into the software. The packages are identified and compared. Is the package damaged?

Is the code complete? Are the weight and volume the same? Is there a pileup of packages, or could a package even be missing?

Automatic fault detection is made possible by comprehensive product and production data. The data is completely synchronised in seconds. Defects can be tracked by all centres, and it is possible to trace the weak point. Also, quality defects can be identified and resolved in the process. Since the speeds on the conveyor belts are further increased, maximum productivity is ensured – not just within a location, but globally.

This example of an intralogistics process shows how increasing quality requirements and the desire for resource efficiency can be implemented in the context of Industry 4.0. Sensors detect changes to the object and enable seamless data acquisition. The software solution analyses the process data and implements actions. The combination of a variety of data and the analysis software is an important prerequisite for Industry 4.0 and the issue of sustainability. Goods in the production process and supply chain must be reliably, uniquely identified to support efficient automated control. From individual packages on a conveyor belt to a complete overview of millions of packages transported every day, there must be a convenient way to call up and analyse the status of all acquired data.

Smart sensors acquire and communicate this data. However, users do not experience true added value until this data can be used as a basis for improving business processes.

This data offers extensive opportunities but also presents the significant challenge of preparing it in a way that allows companies

The triumph of microelectronics continues even today. An eloquent example of this is seen in the powerful applicationspecific integrated circuits (ASICs) that SICK developed and uses in devices such as optical and inductive sensors. The increasing speed in the computing power of state-of-the-art chips enables remote processing of substantially larger amounts of data and capabilities like the associated use of complex mathematical methods. This is resulting in completely new dimensions for the scope, accuracy and ruggedness of measurements. Sensor solutions measuring in multiple dimensions, such as camera systems and laser scanners, would also be impossible without this development due to their high data volume.

Increased computing power enables even more intelligent sensors, but this does not result in sensor intelligence until equipped with the right software and application knowledge. The intelligent linking of application knowledge with the flexibility of state-of-the-art software architectures enables the next development stage for sensors. This is characterised by the possibility of sensors that can perform more extensive analysis, automatically adapt to changes, communicate in the network, and remotely solve complex tasks within a larger manufacturing network. In other words, the sensor links to the machine, the system, the factory and the entire value-creation chain, and provides for transparency in production.

As a result, it provides the entry point into the world of Industry 4.0.

For all virtual worlds, however, sensor intelligence remains one thing above all – part of a sensor. Even the cloud and apps need to have a physical basis in the real industrial environment, namely, a rugged and reliable piece of hardware. And building this hardware requires one thing above all: decades of experience.

Christoph Müller is the Manager – Global Marketing & Communication at SICK. www.sick.com.au

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Bringing Industry 4.0 to the machine shop The pressure to increase productivity and quality while supplying ever more information for customers – from machine utilisation rates through to 3D simulations of five-axis programmes – is already filtering down the supply chain to even the smallest machine shop. For this reason, Mazak has developed Smooth Technology, a CNC that has the capability to bring the Industry 4.0 principles of connectivity, productivity and data analytics into any manufacturing plant, factory or machine shop.

Smooth Technology can act as the catalyst for the introduction of Industry 4.0. At its core is the ability to gather and analyse data, enabling the factory floor and management suite to make better, faster decisions, improving yield and speeding up production. Crucially, it is entirely scalable. As production increases and new machines or automation equipment are introduced, Smooth Technology can be quickly scaled up to match new requirements.

In an Industry 4.0 factory, every aspect of production is connected, monitored and analysed, from production scheduling through to virtual simulation of the component to be cut, energy consumption, tool management and maintenance practices. The goal is to deliver more productivity and better quality products with less machine downtime.

Factory floor The factory floor is the heart of the manufacturing process, but process inefficiencies all-too-often go undiagnosed and unrectified, contributing to poor productivity and quality issues. Machine programming is one such area of inefficiency. Faulty programming can lead to reduced productivity, high scrappage rates and poor component quality.

optimising the schedules based on manufacturing requirements and operator shift pattern.

One way of ensuring that the programme is correct prior to cutting is via the use of 3D simulation, which ensures that every aspect of the programme has been tested before machining is commenced. A high-value subsea valve made from Inconel block, for example, can be reduced to scrap if the machine has been poorly programmed.

Mazak’s Smooth Technology is equipped with Smooth Cam RS, which performs fast and accurate programme verification by 3D simulation, including five-axis programmes, providing accurate interference checks and set-up time reductions.

The software creates prediction load requirements, simulates specific machine loading requirements, displays tools needed to perform tasks, displays actual results and identifies any overdue workpieces.

All of this information is displayed on the home screen or can be viewed remotely by mobile device or on an office PC, ensuring that key information is available to the factory floor and management, at any time or in any place.

Within any machine shop or factory there is a constant need for smarter production processes that can unlock greater productivity.

The use of data and analytics is one way that tool management can be significantly improved, with better tool utilisation, chip-to-chip time and reduced downtime.

Information silos are one of the major areas of inefficiency in any manufacturing operation. Those with management responsibility will make better decisions if they can access high-quality, real-time machine and production data. With Industry 4.0, information silos are broken down and data can be quickly analysed and shared with all levels of an organisation, from factory floor to management suite, purchasing, finance and logistics.

Smooth Tool Management centrally manages the tool data in the machine shop, reducing downtime and increasing utilisation. The programme links with a tool pre-setter to automatically enter tool length and diameter offsets, whilst a tool ID chip is linked to a database to easily track the transfer of tools from magazine to machine.

Automation Finding and employing skilled engineers and CNC machine tool operators can be an enormous problem. When skilled employees can be found, their abilities command high salaries, which inevitably increase the cost of production and decreases competitiveness.

Production office and management suite

Smooth Monitor breaks down information silos, by ensuring that operational results of each machine can be accessed by all the relevant people, using a LAN connection. Smooth Monitor graphically represents the status of each machine and offers an overall visualisation of factory status. Dashboards can be displayed in the factory or monitored via a smartphone or other mobile device with key information, such as spindle load, available for analysis at all times.

It would be far better to focus human resources at highly skilled jobs and tasks, leaving automation equipment to fulfil more menial tasks, which in turn will increase efficiency and aid smarter production.

However, greater automation must be allied to greater connectivity to unlock the potential of machines and automation working closely together.

Crucially, with Smooth Monitor, other manufacturers’ machines and equipment can be managed from the tablet. Smooth Monitor uses MTConnect, an open, royalty-free manufacturing communications protocol that has the ability to connect different machines and automation systems on the factory floor, enabling third party suppliers of equipment to connect with CNC systems, such as Smooth Technology.

Mazak’s Smooth Technology can act as the catalyst for closer cooperation between machines and automation equipment. The technology comes equipped with Smooth PMC, a management software for Mazak’s Palletech automation system that is capable of

The software facilitates communication between different manufacturing devices and software from different suppliers, enabling the implementation of Industry 4.0 principles that will ultimately generate productivity improvements.

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ERP and energy performance The ability of different systems, within a factory or machine shop, to connect and work together is central to the Industry 4.0 philosophy.

The enterprise resource planning (ERP) system lies at the very heart of most organisations, integrating core business processes, from product planning and procurement, through to manufacturing, inventory management and logistics.

It is vital therefore that the machines on the factory floor are connected to the ERP system. Mazak’s Smooth Technology has been specifically designed to work with ERP systems, to ensure that organisation can place the workings of individual machines into the overall production plan.

Smooth Scheduler automatically configures efficient production schedules which take into account multiple different parameters, including cycle times, batch numbers and workpieces in a lot. The software then prepares an optimum production plan, for multiple machines and multiple machining operations, offering complete visualisation of the factory floor and links into the ERP system. The benefits include reduction in in-process inventory, fast responses to delivery deadlines, improved overviews of production capacity and increased machine utilisation.

In recent years, the issue of energy saving has become more important for machine tool users. Savings on energy translate directly to the cost of running the machine, have a major impact on profitability and a factory’s impact on the environment. Mazak’s Smooth Technology is equipped with a Smooth Energy Dashboard that displays a range of power consumption metrics, including tonnage of CO2, electricity charges and daily peak power.

Security With the free-flow of data and open systems that is required for Industry 4.0, there are clear threats to security, particularly for those manufacturers operating in sensitive sectors such as nuclear or aerospace, or with highly restricted customer agreements in place.

In response to these security concerns, Mazak has partnered with Cisco to develop the Smart Box state-of-the-art cyber security system. The Smart Box provides advanced cyber security protection allied to exceptional analytical insight, including access to live data streams in cycle, feed rate reports and completion reports. The Smart Box system can monitor data from any machine regardless of manufacturer, age or CNC, and has the ability to provide greater throughput, faster decision making and higher productivity.

Key features of the Smart Box include: • Provides advanced cyber security protection via a state-of-theart Cisco networking platform and Layer3 Managed Switch industrialised for the factory environment.

• Provides insight from utilisation of individual machines to entire manufacturing cells.

• Utilises an open standard to provides freedom to choose any third-party analytical software platforms software.

• Utilises the FOG computing concept created by Cisco; extending cloud computing to the edge of an enterprise’s network, also known as Edge Computing.

• Monitors data from any machine regardless of manufacturer, age and CNC. • Yields higher throughput, increased utilisation and lowered downtime.

Maintenance

The iSmart factory

Maintaining machine uptime and productivity is vital and rests on the ability to accurately diagnose potential machinery problems in advance. Every hour of machining time that is lost costs money and is damaging to customer relationships.

Mazak’s commitment to Industry 4.0 is not a concept or an aspiration.

Mazak’s commitment extends to building its iSmart factories, which take Industry 4.0 principles and apply them to Mazak’s own production facilities. Their first iSmart factory in Oguchi in Japan became fully Industry 4.0 operational in early 2016 and subsequently Inabe, also in Japan, and Kentucky in the US.

Modern maintenance practices are relying increasingly on planned and preventive maintenance techniques, such as condition monitoring, rather than reactive maintenance procedures, which are only actioned when a critical fault occurs.

Smooth Technology is equipped with a number of intelligent functions that can aid the diagnosis of machinery problems and ensure that maintenance support is focused and targeted to where it is really needed. Smooth Spindle Analytics is a key tool in identifying the temperature, vibration and displacement of the spindle, providing data that can help prevent machine problems and reduce production loss. Technicians can also remotely monitor a machine’s performance, identifying operational machine issues that can then be escalated to maintenance teams.

The iSmart factory concept takes Industry 4.0 principles and brings them to life using Smooth Technology to control every aspect of a factory’s operations, scheduling production, monitoring and analysing performance, and all the time sharing relevant information in a secure environment.

Mazak is taking the knowledge from implementing Industry 4.0 in its own iSmart factories and using it to drive innovation for customers. New machines, new CNC and new automation systems, connected together and not only driving productivity, but also driving Industry 4.0 principles through the supply chain. www.johnhart.com.au

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Plug-and-play connectors can empower engineers to create modular machines The assumption that hardwiring of industrial machines will minimise wire installation costs turns out to be wrong, writes Simon Pullinger.

If you design or build industrial machines, you probably know all about hardwiring. It remains the most common way to bring power and signal to the machine because it offers perceived savings in installation costs. But the cost savings are really a mirage once you factor in the full range of wiring costs. These obviously include time and materials: the cost of the wire, cable, accessories and labour. Less obvious is the fact that you’ll also incur hidden installation costs with their own labour and time-tomarket considerations.

For example, many machines have to be disassembled for shipping and reassembled for start-up, so you’ll have to hardwire parts of the machine at least twice. Then there’s the cost of errors.

Field wiring errors are common, especially when local electricians, unfamiliar with the machine, handle the wiring. At best, these errors can delay machine commissioning.

At worst, they can damage the machine.

Finally, add in the cost of testing, which can be complex and expensive in hardwired systems. Keep in mind the hidden costs will grow exponentially with the number of connection points on the machine. Fortunately, you can avoid these costs through ‘connectorisation’. While connector components require a bigger upfront investment, you will recoup that money and then some.

Connectors enable lower-cost machines Using connectors gives engineers the flexibility to create modular machines that are faster and less expensive to build. In this approach to machine design, common subsystems and components can be prebuilt, tested and stocked for installation.

Many machines can be designed from reusable modules, including control panels, junction boxes, populated cable tracks and motor assemblies. Sensors and actuators with prewired connectors are also increasingly available.

Connectorisation provides the plugand-play assembly that makes modular machines so attractive from a cost standpoint. Not only will the connectorised modules be easier to assemble, but they also ensure wiring integrity. For example, when multiple connectors can be mounted side-by-side, they can be keyed so that each cable connector only mates with the right receptacle.

One knock you’ll hear about connectors is that they can’t possibly cover all the scenarios addressed by point-to-point wiring, which is inherently a custom approach. Nowadays, however, electrical connectors address just about every power, control, signal and data application you can imagine.

Some of these connectors are dedicated to specific electrical specification and have a fixed number of contacts. And custom modular connectors can meet specific machine requirements not addressed by off-the-shelf dedicated connectors. These modular connectors can pack power and control contacts, fibre optic contacts, pneumatic ports and data bus connectors into an environmentally-protected housing.

Faster ship, quicker commissioning When new, large machines get ready to be shipped, they have to undergo some disassembly. At the very least, cables to and from the control panel will need to be disconnected for shipping. With hardwired machines, this extra step can be time-consuming, expensive and fraught with error.

With connectorised machines, you simply unplug any cables from the panel’s bulkhead connectors. Wire routing and connections internal to the panel remain undisturbed. The same holds true for junction boxes, motor assemblies, sensors and data cables.

Once the machine arrives at its destination, all wires disconnected for shipment need to be connected all over again. In many cases, local electricians perform this crucial rewiring process using a set of wiring schematics. Since the electricians may know little about the machine and how it works, the rewiring process is notorious for costly mistakes and start-up delays.

Machine builders sometimes minimise this risk by sending one or more factory technicians to complete the installation and traveling technicians will drive additional cost.

Connectorised machines, by contrast, have a true plug-and-play start-up process.

The need to rewire the machine in the field, and the possibility of wiring mistakes, are eliminated. No wiring mistakes means no costly troubleshooting or replacement of damaged components. For large, complex machines, installation and start-up procedures that would take several weeks can often be reduced to a matter of days.

Machine buyers today expect and demand continuous, uninterrupted operation of their manufacturing and assembly lines. In large factory operations, even the briefest downtime can cost hundreds of thousands

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of dollars due to lost production. With a connectorised machine, replacement of a burned out motor, failed sensor or damaged component or cable takes place as quickly as the replacement parts can be installed on the machine. To put it another way, connectorised systems remove any wiring-related downtime.

For machine builders, the ability to quickly ship, install and maintain machines represents an important selling point for their customers. While the upfront cost for connectors is higher, this one-time cost will be more than offset by the recurring and hidden costs associated with hardwiring.

Go modular for design flexibility and savings Connectorisation usually makes a lot of sense compared to hardwiring, but what if you can’t find an off-the-shelf connector that meets your technical requirements?

That’s where modular connectors enter the picture.

Based on plug-and-play modules in standard frame sizes, modular connector technology covers a wide range of power, control and data connections. These include high voltage, high current, thermocouple, Profibus and Ethernet. Modular connectors also support hose-connected pneumatics up to 145 psi.

The main benefit of using modular connectors is that they combine the best attributes of custom and off-the-shelf products:

• Custom design flexibility. By combining power and signal modules freely, you get all the design flexibility of a custom product. Often, modular connectors will allow you to consolidate what would otherwise have been multiple connectors, saving panel space and reducing installation costs.

Modular connectors can also be pre-assembled, fully tested cable assemblies – for even greater savings in installation and replacement costs.

• Off-the-shelf convenience. Despite their custom nature, modular connectors have lead-times similar to off-the-shelf products, which helps you meet your delivery deadlines.

Simon Pullinger is the General Manager of Lapp Australia. www.lappaustralia.com.au

DRIVING YOUR INDUSTRY 4WARD. Industrial automation is changing at an extremely rapid pace. As an innovation leader, developing cutting-edge sensor technology, SICK offers solutions today that are ready for the challenges of the future. With intelligent sensors that collect data, evaluate them in real time, adapt to their environment and communicate in the network. Enabling a new quality of flexibility. Networked intelligence for efficient processes and reliable cooperation of humans and machines. We think that’s intelligent. www.sick.com.au

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Royal Australian Mint simplifies manufacturing systems and processes Driven by the need for increased efficiency, improved process maturity, and greater information sharing across the business, the Royal Australian Mint set out to find an enterprise resource planning (ERP) solution that offered the adaptability and flexibility it required.

As a listed entity within the Commonwealth Government portfolio of the Treasury, the Royal Australian Mint is the sole supplier of Australia’s circulating coinage. Since its establishment, the Mint has produced more than fifteen billion circulating coins and now has the capacity to produce two million circulating coins per day. The demand for uncirculated coins has led to the expansion of the Mint’s manufacturing capability of high-quality and innovative collector coins.

In addition to producing Australia’s coinage, the Mint produces coins for other countries – along with medals, medallions, tokens, and seals for private clients both national and international. The Royal Australian Mint is also a tourist attraction. It educates students and visitors on the history of Australian coinage, and it explains how technology is being used in its modern manufacturing environment.

Shifting focus In 2010, the Royal Australian Mint had implemented a manufacturing resource planning solution to facilitate the production of circulating coins and numismatic coins.

The solution was designed to provide integrated manufacturing, sales, dispatch, financial, maintenance, HR, and document management capabilities. As the solution was reaching its end of life, a significant investment was required to upgrade.

The business of the Mint had also changed since the solution’s initial implementation – driven by the requirement to increase production efficiencies, improve process maturity, and the need for greater information sharing across the business. The original solution had been significantly customised, making it difficult to update regularly. This meant the solution became outdated and difficult to use, hindering the Mint’s ability to improve business processes.

Ricardo Alberto, Chief Technology Officer at the Commonwealth Treasury, explains: “We are seeing a decline in the amount of circulating coins in Australia. Because this part of the business is funded by the Government, we needed to grow the commercial side of the business to cover the shortfall. To do this, the Mint had to become more commercially focused – something that is unique for a government agency.

“We needed to find efficiencies across the business to deal with the increasing demand

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for collector coins. This was a big challenge, as the collector market has lots of different coins which are higher in value.”

Consequently, the Mint needed an adaptable and flexible manufacturing enterprise resource planning (ERP) solution that could drive production efficiencies and improve processes. The solution also needed to enable information sharing across the business, real-time reporting, and online capabilities so the Mint could have visibility across its entire operations.

“Every efficiency that we can get out of manufacturing workflows and financial reporting translates into a significant benefit for the business,” says Alberto. “We needed a solution that would effectively address business process efficiencies.”

Flexibility and simplicity needed After identifying its challenges, the Mint needed to decide on the right approach to solve them. The business knew it could either upgrade its legacy system or test the market and look for a new manufacturing ERP solution. The Mint wanted a simple and user-friendly solution that was preconfigured and would deliver value almost immediately.

“We didn’t want to spend 12 months writing

specifications, designing, and building the solution,” says Alberto. “Typically, these projects take 12 to 18 months just to start the implementation phase. We were looking for something that was known within the industry, with standard set-ups to complete basic manufacturing and financial functions, and with a user-friendly interface.

“The Mint has a diverse workforce, and the chosen solution would be used by factory staff, as well as administrative, finance, and senior executives. It needed to be a simple solution, as we would need to explain how to use the system to approximately 240 of our employees across all branches.”

The Mint went through a thorough evaluation process before finally selecting Epicor ERP. As Alberto explains: “One of the main reasons we chose Epicor was that the solution met our organisational goals of flexibility and simplicity. The user interface – which was delivered out of the box – fitted perfectly with the Mint’s strategy of not having to customise significantly.

“Epicor also demonstrated its expertise and experience in the manufacturing industry.

We wanted a specific manufacturing solution, and it was evident that the Epicor

QUALITY & INSPECTION technology has been designed with all the intricacies associated with manufacturing in mind. Using an out-of-the-box solution, the team hasn’t come across any instance where additional functionality is needed to complete tasks. There are multiple options to choose from, allowing the team to map work practices to at least one of those options.

“For example, the costs of the different parts in the manufacturing process are aligned with the correct financial accounts. The system can be configured and integrated without having to apply any additional code.

Thanks to the Epicor solution, we didn’t need to code any specific workflows.”

Integrating across the business The Mint now has an ERP system that manages its daily operations across the entire business. The solution lets the Mint manage quotes, sales orders, packing, and dispatching orders, as well as manufacturing processes – including planning, scheduling, purchasing of raw materials, and labour.

The ERP system also allows all costs to be recorded so reporting can be completed accurately.

The Epicor ERP system is integrated with the Mint’s retail sales channel – including its eShop and its customer relationship management (CRM) system. It is also integrated with Australia Post’s eParcel

system to track shipping deliveries recorded in the system. The Mint worked with Precise – an Epicor partner – to implement a point of sale (POS) system in the retail store, which integrates with the Epicor ERP software.

“Previously, the Mint did not have any integration with the POS system,” Alberto notes. “The time it took to do reconciliations between the retail store and roadshow sales has been significantly reduced thanks to the Epicor solution. We save up to several days per month on reconciliations for the mobile coin fairs and a few hours per week in the retail store.”

Reflecting business operations “The prime benefit for the Mint has been in dispatching orders,” Alberto continues.

“Before the implementation of the Epicor ERP solution, the process of dispatching orders was not efficient – especially when we were experiencing a period of high sales, such as when a new product was released.

Epicor has provided an electronic way to sort through orders, providing greater efficiencies and allowing customers to receive orders in a timely fashion.

“Simplicity and reliability have been the key themes throughout this project. One of the greatest advantages of using the Epicor ERP system is that we can track and trace everything. For example, if we are questioned about an inventory transaction,

we are able to track all actions that have occurred with that inventory.

“Using the Epicor best-practice manufacturing solution to drive change management, our employees have become really engaged, and the project has challenged staff to think about business processes. It has put the whole business on a new footing, and employees are taking responsibility for these processes. The Epicor solution has proven to be a powerful support tool for our employees, and the easy-to-use user interface meant that the employees have adapted to the new technology quickly.

“We are confident that the Epicor ERP system reflects what is happening in the business, in every area, every step of the way.”

In terms of supporting the company’s future growth, the Mint now has the flexibility to accommodate new ideas and new ways of approaching the market. Alberto concludes: “Epicor offers the flexibility to support the business wherever we want to expand because we don’t need to customise the solution. This means we can use native processes to deliver solutions and stay up to date and regularly upgrade the solution.” www.epicor.com/australia www.ramint.gov.au

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3D stereo measurement during critical component inspection Jet aircraft, racing cars and other high-performance machines are expensive to operate and maintain. As a consequence, asset owners expect the engineers and technicians tasked with maintaining their machines to minimise the time spent repairing and maintaining them.

To check the condition of aircraft engine turbines or the inner workings of a sports car usually means dismantling the components.

According to Sean Fogarty, Senior Sales Specialist at Olympus, the ability to see inside an engine or other confined space without having to take it apart can save both time and money.

“Regularly inspecting the inside of an aircraft engine means that it only has to be opened up when a flaw or defect is observed,” says Fogarty.

Remote visual inspection (RVI) is one of many non-destructive testing (NDT) technologies manufactured and supported by Olympus. Fogarty says his company has been at the forefront of advances in RVI design and production for decades. A videoscope is an inspection instrument that consists of a small camera mounted on a length of cable. The camera can be controlled remotely by an operator while it is inserted in the cavity to be inspected. Modern videoscopes incorporate light sources into the tip of the probe as well as motors to move the LED and lens assembly. Olympus videoscopes can be used to carry out inspections without causing damage to the delicate parts of equipment.

“The iPLEX NX is the latest videoscope to be released by Olympus in Australia and incorporates high quality optics with bright illumination aids,” says Fogarty. “The optics have been combined with an intricate but robust mechanical network allowing fine articulation to improve usability.”

RVI of materials, components and structures allows engineers and technicians to inspect internal surfaces and other features of an engine, motor or machinery. Aircraft maintenance engineers regularly use them to inspect the inside of engines to ensure optimal performance.

“A constraint of videoscopes has been the challenge of getting the best optical and lighting components small enough to fit in the ‘business end’ of the videoscope’s probe,” Fogarty adds.

The iPLEX NX is equipped with sophisticated 3D stereo measurement capability over a much larger area. This functionality saves time and increases efficiency, especially when inspecting larger defects in aerospace components. The larger field of view (FoV) and greater depth of field (DoF) yields a measurement area four times wider than conventional scopes. Advances in image quality not only support accurate measurements, but also increased the probability of detection (PoD). The iPLEX NX has a tip to target range of 4mm-60mm, meaning flaws can be observed in the most inaccessible areas such as heat exchanger tubes or turbine blades.

Fundamental to supporting comprehensive inspections with speed and efficiency, improving accessibility of hard-to-reach areas directly increases PoD. Navigating through tight spaces can now be achieved by the operator with a combination of increased flexibility and control, protected by unparalleled abrasion resistance afforded by a 42-strand tungsten mesh. These advances enable the operator to easily direct the probe tip to visualise more of the component than previously possible, with direct sensitive control of articulation throughout the full 360-degree range.

The iPLEX NX has also improved operational efficiency by merging inspection and measurement capabilities into a true single operation.

Historically the time-consuming flaw inspection workflow required two different tips to ensure accuracy. The videoscope features an

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Displaying data in real-time provides a wealth of information.

upgraded charged couple device (CCD) allowing for much greater resolution yielding a bright, high-quality image. Combined with a high-illuminance laser diode, far more details become visible and thorough inspections can be carried out at a wide angle with a single screen view, guaranteeing the highest performance for both inspection and measurement – with just one measurement tip installed.

The high-quality images allow operators to quickly uncover and accurately measure flaws that in the past would have remained hidden. This permits a thorough inspecting of components for ultimate confidence in engine performance.

With conventional videoscopes, highly reflective materials such as metals, glass and oily surfaces result in dark images that cannot be used for taking measurements. However, under the same conditions, the super-wide field 3D stereooptics in the latest Olympus videoscope allow accurate measurement under the same conditions.

Another constraint for viewing and measuring tiny defects is that small surface areas are often too narrow to project grating patterns, meaning that measurement of the target is not possible with standard videoscopes. Using the IPLEX NX with super wide field 3D stereo measurement, the thin ends and edges of components can be accurately measured.

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The iPLEX NX has improved operational efficiency by merging inspection and measurement capabilities into a true single operation.

Regularly inspecting the inside of an aircraft engine means that it only has to be opened up when a flaw or defect is observed.

Advances in processor technology and computational algorithms have also underpinned improvements in measurement performance in addition to introducing valuable new capabilities. For example, displaying data in real-time provides a wealth of information, keeping the operator informed of surface shape and distance with no pause or break in the inspection. Distance from the scope tip to multiple points on the inspection surface is provided with multispot ranging. This technique supports immediate assessment of a target’s suitability for image capture via pre-measurement surface condition and confidence information.

Olympus continues to develop and market advanced, nondestructive testing systems, and a large selection of industrial scanners, probes, software programs, and instrument accessories.

Fogarty concludes: “We are committed to the development of new technologies, products, and services that offer the best solutions to the needs of our customers.” www.olympus-ims.com

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Specialist machine shop enjoys new capabilities and 50% time-savings Quality management is a vital ingredient for business success. Regardless of the industry, product, or service, an organisation must maintain a level of excellence in order to flourish. A large part of quality management is centered around balancing consistency with efficiency and productivity. For this reason, quality assurance managers place great value on comprehensive solutions that can address all their needs, and which they can implement throughout a facility or across various sites.

The search for a suitable supplier is not always straightforward, but for Thai machine shop MRP Engineering, the journey to identifying a trusted partner was relatively smooth. Established in 1991, MRP provides a comprehensive range of machining and fabrication services such as welding, hard facing, sandblasting, painting, turning, milling, shaping, grinding, drilling, boring, simulation assembly, and machine installation. The company offers made-to-order products and turnkey projects, and provides repair services for all kinds of machinery.

Today, the ISO-certified company is the proud owner of several portable coordinate measuring machines (CMMs), which it purchased to cope with new customer demands. Prior to that, the team at MRP had relied on handheld tools such as vernier calipers, micrometers, bore gauges, height gauges, tapper gauges, and dial gauges.

Commenting on the search process that had taken place a few years ago, Krissarakorn Thainoi, QA Division Manager and Assistant QM Representative at MRP, says: “It was quite clear back then that our existing tools were becoming insufficient for our measurement needs. We were using hand tools to measure various dimensions of a workpiece, such as height, length, plane, size, perpendicularity, runout, and straightness. The hand tools were not sufficient when our customers started requiring tighter tolerances from us. We also felt a general need to increase our capabilities to support geometric dimensioning and tolerancing (GD&T).”

Quality management across MRP’s full suite of services became a complex affair, as it involved multiple stages of production and various applications across its 320,000sqm factory. To maintain consistency throughout the organisation, the team was keen to have one solution that could adequately address all their measurement needs.

“Our measurement needs are quite varied and spread across the incoming, inprocess, assembly, and final stages of production,” says Thainoi. “Applicationwise, the measurement work usually involves inspection, alignment, dimensional

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MRP Engineering’s factory in Chonburi province, Thailand.

calculations, calibration, and installation. In addition, our team also requires support in the reverse engineering and design phases of production.”

The objects that MRP work with typically measure 1-4m in length, and weigh anywhere between 20kg and 50 tons.

For assemblies and turn-key projects, measurement distances range from 2030m. The implicit challenge for the QA team was that the solution they selected must be flexible yet accurate enough to handle various types of measurements.

Driven by a sincere desire to improve, the team at MRP scoured the web to find the most suitable solutions available on the market. Their search eventually narrowed, and MRP requested a product demonstration with FARO in 2010, which then led to them progressively investing in FARO solutions over the next five years — an eight-foot FaroArm Platinum in 2011, a FARO Laser Tracker ION in 2013, and an eight-foot FaroArm Prime in 2015.

Since implementing FARO’s solutions, MRP has enjoyed a number of benefits and seen improvements in quality and efficiency levels. Thainoi explains: “Our team now achieves higher levels of accuracy and repeatability. We can confidently tell our customers that measurements are within

tolerance levels of 20 microns and 2mm.

This change in technology has increased our product quality and consistency across the board. In addition, measurement times have decreased as it’s easier and quicker to acquire data with the FaroArm.” The FaroArm is an articulated arm – one of the most common portable CMM devices available – equipped with several articulating joints, which allows it to determine and record the location of a probe in 3D space, and to report the results through software. Resembling the form of a human arm, the articulated arm ascertains the position of a probe with the proprietary glass discs called encoders in each joint, and these encoders calculate the probe’s position as the arm moves freely throughout its workspace.

The portability afforded by the FaroArm also meant that MRP could deploy the measurement tool anywhere on the shopfloor, right where production takes place. This is especially useful for the team when working on large, bulky objects that are laborintensive to move, and difficult to position. Thainoi adds: “In fact, we used to spend a lot of time in setting parts up ‘correctly’ for measurement on a machine.

With FARO, we’ve managed to gain 50% time-savings, cutting measurement times

QUALITY & INSPECTION

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down from four hours to a mere two hours.”

With turn-key projects and large assemblies, MRP makes use of the FARO Laser Tracker ION to conduct inspections and alignment checks. Laser trackers like the ION offer extremely accurate measurements over long ranges, as they are designed to handle larger working volumes.

Each time it takes a measurement, the device establishes the precise location of a target in spherical space by measuring two angles and a distance. It does so by sending a laser beam to a retro-reflective target, which must be held against the object being measured. The return beam re-enters the laser tracker where the distance to the target can be determined using interferometry or phase shift analysis.

As MRP switched to FARO’s portable CMMs, the company gained access to the world of digital data, which it had not previously possessed. The team can now use computer-aided design (CAD) data for production, from the design phase right through to final product. This capability also enabled MRP to easily provide its

customers with reports, generated by the PolyWorks software that helps to process the data.

Today, the FARO devices have become such an integral part of MRP’s production process that the team uses them every day of the week. From Mondays to Saturdays, the team performs measurements the entire day, for up to 10 hours each time.

The devices are in use even on Sundays — for four-hour shifts — and on public holidays as well.

“We’ve been using FARO solutions for seven years now and they work well, providing us with exactly what we needed to satisfy our customers,” concludes Thainoi. “FARO stood out from everyone else that we were considering — about seven other companies — mainly because of the rapport we felt with the sales team right from the start. The sincerity, warmth, and genuine desire to help was very evident, and we look forward to a lasting partnership with FARO in the years ahead.” www.mrp.co.th www.faro.com

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COMPANY FOCUS Aurora Labs’s machines are largely made at its plant in Bibra Lakes, with some parts produced by contractors based around Perth.

Aurora Labs – A new industrial revolution?

The continued evolution of additive manufacturing is inspiring innovators around the world, but there won’t be many who can match the ambition of Perth-based Aurora Labs: to disrupt an entire industry. By William Poole.

Frequently asked questions about additive manufacturing (AM): Could 3D-printed parts ever match the characteristics of traditionally manufactured components? Are the parts reliable, or safe? Can’t you only print small components? Isn’t it slow? Aren’t the materials expensive? And can’t people just steal your intellectual property (IP) by copying your designs and printing them? A lot of people are working on answering one of these questions or another. But Aurora Labs aims to tackle them all.

Aurora makes 3D printers, but it brands itself as “an industrial technology and innovation company”, and Founder and Managing Director David Budge describes a number of separate divisions to the business, covering distinct elements of manufacturing process.

The actual printers are only part of the story, but they’re a good place to start.

“When we first looked at 3D printing we realised there were two primary problems: the machines were very slow, and very expensive,” says Budge. “So naturally the parts produced had to be very expensive – typically $800 to $3,000 per kilogram – and most of the cost is the amortised cost of the machine. We realised there are two ways of solving that problem: produce a much lowercost machine, or produce a very high-speed machine. We are in the process of doing both.”

Aurora specialises in powderbed machines for 3D-printing in metals. Its small-format printer, the S-Titanium Pro, can produce high-quality parts with near-net shape resolution from a wide range of metals. Already selling into international markets, the S-Titanium Pro costs US$55,000, whereas according to Budge, comparable machines cost US$200,000-US$500,000. Aurora’s next model, the RMP1 medium-format machine is targeted to print high-resolution, high-quality, complex parts.

However, Budge believes the real game-changer will be Aurora’s large-format technology, currently in development. These machines have the objective to print large, complex parts with minimal postfinishing, material properties that match traditionally manufactured components, and at very high speeds.

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“By high speed, we’re talking about a ton or more in a day,” says Budge. “That’s a massive step-change in speed. Even in its current stage of development – what we call ‘simple parts at market speed’ – the technology is so fast, people look at a video of it and generally think we’re just coming up with special effects! It’s so fast you can’t actually see it forming, all you see is a flash of light.”

Budge stresses that the key benefit of AM is that “complexity is free” – the process enables levels of intricacy within single parts that couldn’t be achieved using any other process.

“Let’s say you have a 10kg heat exchanger with tens of thousands of pipes running through it. To the printer that makes no difference.

It takes exactly the same time and costs exactly the same to print.

So when you start to print 300kg-1,000kg per day, the primary driver for price is no longer the amortised cost of the machine, even a relatively expensive one.”

If Aurora’s technology is developed as planned, it will be scalable, allowing the printing of parts from dental crowns to large structural components for shipbuilding.

“The larger companies we’re talking to have between $500m and $4bn worth of stock just sitting on the shelf,” says Budge. “If you can print a part in a day instead of waiting 12 months, you don’t need 12 months’ worth of stock, you need a day’s worth. As soon as you use it, you print another one. Most of the large industrials we speak to are interested in reducing their bottom line, and this is potentially a pathway to do that.”

To drive adoption of the technology, Aurora has launched an Industry Partner Program aimed at identifying key partners in relevant sectors. The partners get early access to the large-format technology, to evaluate its capability and its potential impact on their operations. Aurora then works with them to get an in-depth understanding of their processes and develops solutions tailored to their needs. The Program also gives Aurora direct feedback on how its machines can be improved.

WESTERN AUSTRALIA HEADING

Aurora Labs specialises in powderbed machines for 3D printing in metals.

Aurora has also established AdditiveNow, a joint venture with engineering giant WorleyParsons’ wholly owned subsidary Advisian to help manage the considerable logisitical challenges in what it’s undertaking.

“The joint venture allows us to leverage off a company with 26,000 employees,” says Budge. “What we are finding is potential clients want to buy printers , convert their traditional parts into parts optimised for 3D printing, and print everything themselves. They want to be taken through the process of being able to do that. In that case we’d be able to pull in extra engineers via AdditiveNow to help manage that process, because that’s a lot of work.

“On the other extreme, another group, with more than $4bn worth of parts on the shelf, said ‘We don’t want to have to worry about that. We want a parts inventory that’s all digital, we can click on a part and have it turn up in three days.’ In that case, there could be a print bureau with a small engineering shop tied to it, and basically convert this customer’s entire inventory into a digital inventory.”

The potential applications for this technology are numerous.

However, in the initial stages Aurora is focusing on a specific set of markets, with an emphasis on large-scale manufacturing and heavy engineering.

“We’re looking at oil & gas, mining, marine, automotive and aerospace,” says Budge. “We’re trying to target these specific industries because, to be honest, when you look at the industries that can be impacted with this, it’s basically every sector. If you can print car bodies instead of manufacturing traditionally, you get rid of $1bn worth of plant. If you want to change a design, instead of costing $100m to retool that plant, you literally put in another CAD model and press ‘print’. If you want to make motorcycles, put in a different model and press ‘print’.

“That’s our goal – to be able to truly disrupt traditional metal manufacturing. The market we’re going after is not a trivial one. The metal manufacturing market is around about $3 trillion, and that’s quite different from the 3D printing market.”

Building an ecosystem When you total up the the size of the parts and the speed at which Aurora’s technology is planning to print them, a fresh problem quickly emerges: the powder that provides the raw material for the printers.

“We did an analysis of the global powder market for AM,” explains Budge. “And we realised with machines that can print a ton a day, that’s about 300 tons a year. The problem with that is we would use up the global powder supply by the time we got 10-20 machines on the market. That’s a problem.”

Ramping up powder production isn’t easy either. According to Budge, a powder production plant currently costs $25m, takes about a year to build, and can produce just 700 tons of powder a year. So Aurora is also in the process of developing its own technology for producing powder.

“Our Powder Production Unit (PPU) has got a couple of unique things to it,” continues Budge. “First of all the capital cost to build it is expected to be significantly lower. The other major benefit is it produces a higher yield. We’ve built the prototype and we’re currently testing it. It’s not there at this stage, we’re still proving out the technology, but we have a timeline in place and we’re looking to have a full-size plant built.

“Our ultimate aim is to build an assembly line for full-sized PPUs, each capable of producing up to five tons of powder per day.”

While the powder technology sees Aurora broadening its scope to the inputs that go into the printers, the company is also addressing the outputs. A further arm of the business is devoted to digital rights management (DRM) and certification – effectively tackling all those questions about quality, reliability, and protection of IP. “With the Industry Partner Program, the second example basically wanted to convert all their parts into digital parts,” says Budge.

“AdditiveNow can pull in resources from WorleyParsons to convert that entire inventory and into a digital inventory. And there’s a definite process we go through to basically convert all those parts to certified parts. Essentially they can print anything anywhere in the world and know that when it comes out, it will be certified.”

Eventually Aurora aims to establish a database and online store of digital parts that can be purchased and downloaded for print. The critical point is that certification of the digital parts encompasses the process whereby it’s printed. With each digital part, Aurora will have printed, tested, modified and reprinted it, until it prints perfectly every time on any Aurora Labs machine. Therefore when it is actually printed, the physical part comes out fully certified.

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COMPANY FOCUS Continued from previous page

“What we are aiming for is a digitally certified part that has internal processes built into it, checking every single layer within the print,” Budge explains. “It is designed to print one layer, check it, go: ‘Okay, it’s got one area of porosity here, a slightly raised area here, a small deviation here. They’re all within acceptable parameters: that’s a tick.’ The next layer’s got nothing: tick. The next, nothing: tick. It goes through a checklist till it’s ticked off everything. If it hasn’t, it’s a fail. Additionally we would seek to ensure that if, say, a forklift runs into it and throws the print out, the machine stops the print and lets you know.”

Aurora has also engaged international certification body DNG VL to provide its own third-party certification, meaning parts in Aurora’s database would be independently certified for use on oil & gas platforms. Apart from aerospace and medical, this exceeds every other layer of certification, including for automotive or mining.

Budge likens the concept to what happened with Napster at the turn of the century, when the arrival of digital file sharing almost bankrupted the music industry. AM is provoking similar concerns, as it becomes easy to replicate manufactured parts by scanning and printing them. Aurora is therefore positioning itself as something analogous to the iTunes store, formalising and legitimising the process, while underwriting the quality of the parts, and protecting IP. The iTunes comparison is compelling, because within its specific niche, what Aurora is doing bears strong resemblances to what Apple did so successfully: creating and monetising an entire ecosystem of hardware, software, consumables, and DRM. “You’ve got the printers, the supply of powders, the digital parts and the certification, all tied in with the ability to scale with our relationship with WorleyParsons. Together these separate components form a powerful eco-system,” says Budge. “That’s very deliberate. You take any one of these legs of the business out and it falls over.”

Rocket-powered innovation Aurora has been in operation for four years now, but its origins go back a year or so earlier, when Budge posted a link on Facebook saying he was starting a rocket company. A small group of old associates and friends came onboard and began work on designing and building liquid-cooled rocket motors.

“Building a rocket motor is not a trivial exercise,” Budge recalls. “If you get it wrong, it blows up. We spent a year and a half working out the maths and physics, developed some software, and started building our first motor, when I came up with an idea for our first printer. I asked everyone if they wanted to get involved in a start-up manufacturing 3D printers, they said yes, and now here we are!”

With a background in materials science, Budge already had some experience in AM. Around 20 years ago, he designed a large gantry-based system for printing houses. The technology then was immature and prohibitively expensive, so the idea was mothballed, but Budge kept an eye on AM. About 15 years ago he moved into heavy engineering, where he spotted huge potential if it became possible to rapidly print large metal parts. “I was running a robotic welding company, basically using robots to make parts for the mining industry. I saw how I could utilise some technology there, develop some new technology, and we could manufacture a 3D printer.”

Today, Aurora’s machines are made almost entirely at its plant in Bibra Lakes, with various parts produced by contractors based around Perth. Inevitably some components are sourced overseas, but Budge is committed to manufacturing in Australia.

“We’ve got all the things we need here,” he says. “Certainly we’re expanding globally at this stage, but there was a very deliberate decision to stay an Australian company. We had options in the early days – one group made us a crazy offer to ship everything offshore and live in the Bahamas. I talked to the team about it and we were like ‘No… we don’t want to do that’.”

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Aurora Labs’s Founder and Managing Director David Budge.

There is also a heavy emphasis on creating a culture of innovation.

While the bulk of Aurora’s existing IP originated with Budge, a growing number of people within the team have now taken out patents. Staff are incentivised through an employee share option plan and bonuses to come up with ideas that are worth patenting.

“An innovation-based culture is something I’m really pushing for,” says Budge. “We’re getting more and more staff into the headspace where they’re inventing things. It’s outstanding, absolutely where I wanted to get this company to.

“We’re quite an innovative company. We’re good at doing things differently. You need an extremely talented group of people to turn the ideas into reality, and we’ve got that here.”

Budge is bullish about Aurora’s prospects over the coming years: “Given the potential cost benefits, we think uptake of this technology will be high. We think within the next five to ten years, we’ll have some significant impacts on the way manufacturing is done. If things go the way I plan, we could be doing all sorts of interesting things.”

Budge also sees great benefits for Australia and its manufacturing industry: “Instead of buying parts in from China or Germany or the US, all those parts will potentially be manufactured here, and will need some post-finishing. Somebody is going to be employed to do that. It means a lot of manufacturing can be brought back here.”

Given the promising outlook, it seems likely the team at Aurora will be keeping pretty busy for the foreseeable future. Does this mean the original plan to build rockets is on hold for the time being?

“Well, this is the thing,” says Budge. “Once we’ve developed this technology as far as we plan to go, it will be a trivial thing to print rockets. It changes the game entirely.”

Watch this space… www.auroralabs3d.com

At ALLGO it’s “Job Done”.

ALLGO Engineering is leading the way in Western Australia in Large capacity CNC machining.

Servicing the mining, oil and gas, rail, marine, defence and many other industries.

Est in 1989 Allgo will celebrate its 30 year anniversary next year. Owner and Founder Phil Vergone says he has seen it all, from starting in the “recession we had to have” where interest rates were pushing around 20% to the current climate where the industry is more focused on low cost, high quality and fast turnaround. We’ve been through booms and busts and to be totally honest the recent mining boom was the worst thing to happen to our business since its inception.

• Many machine shops popped up overnight to cover the small to medium size components.

Toshiba Vertical Lathe 4M swing 20 Ton.

• We had an influx of cheap CNC machines flood into Australia which meant nearly every workshop could buy one.

• The mining companies were paying such ridiculous wages we simply could not hold onto our staff.

• 90% of the work that was promised got procured from overseas and the local businesses were left stranded with empty workshops.

Our once thriving fabrication sector in Kwinana had tumbleweeds rolling down the street whilst there was a boom in our North West.

Okuma Bridge Mill 6.7M x 3M x 40 Ton.

Mori NT4200 with Robot Loader.

I was fortunate for a couple of reasons.

1. I have a dedicated team that shares my vision and also our core values. They have been incredibly loyal and have decades and decades of experience. Their ability to do what is necessary and also think outside the square to get jobs done is the reason our customers keep coming back.

2. I have been in business for so long that we did not have much debt. I decided if we were going to thrive going forward I needed to offer something that my competitors could not.

“Large Capacity CNC machining” and highly productive medium size CNC machining.

We have been quality assured since 1996 and recently we have passed to the new ISO 9001 : 2015 standard.

With over 20 Top brand and modern CNC machines. 40 staff and a permanent afternoon shift we always put our customers first. It is quite common for one of our customers to drop a job off at 4.00pm and we have it ready for pick up at 7.00am the following day.

40 Weston Street, Naval Base,

(08) 9410 2680 | info@allgo.com.au

Western Australia, 6165

www.allgo.com.au

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High-end machines and automation are key to success and sustainability for SQP West Australian precision engineering company SQP Engineering produces crafted CNC products capable of withstanding the toughest mining applications and meeting the standards of industries including the aeronautics industry. This requires a degree of exactitude and precision that SQP confidently delivers on.

Based at Bibra Lake, SQP is a proud familyrun business founded by husband and wife team David and Heidi Miller more than a decade ago. SQP takes its name from Service Quality Products, and these qualities are present in every level of the business.

“Providing high-quality service and products is at the forefront of every aspect of the company from building relationships with customers and suppliers to manufacturing quality products using the latest low impact technologies,” says David, SQP’s Managing Director.

The provision of quality service is proudly expressed by SQP in interactions with customers at every step of the process.

David holds the strong belief that ‘service is in the detail’, and this is evident in situations as simple as a phonecall, or as complex as understanding how different material grades will suit an application. SQP prides itself on its availability to answer questions and provide accurate updates so the customer is in the loop throughout the entire process and can be assured they are receiving a quality product to their exact specifications and vision.

According to David, building strong relationships with both customers and suppliers is vital. From the aspect of quality, the importance of strength in every link in the chain means investing in the latest high-end machines and technology.

“Our workshop is a networked streamlined automated operation, requiring minimal staff to enable SQP to compete internationally with consistent high-quality products manufactured to fine tolerance specifications every time,” says David.

An important part of the company’s quality has been the selection of the best machines available, with robust construction and high-quality output, along with the technical expertise and backup service to support the machines. David had experienced Okuma technologies earlier in his career and was extremely impressed by Okuma’s high levels of service. Alongside the stateof-the-art technologies, this dedication to service stood out, matching David’s own expectations for quality business practice.

With this experience, when planning SQP’s first major investment, David’s natural instinct was to turn to Okuma. Hence a long, strong relationship has been built

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with Okuma Australia over the last decade.

Today SQP operates an extensive range from Okuma including CNC lathes, vertical machine centres and FANUC robotics.

Today SQP covers a broad range of industries, notably mining and oil & gas, as well as aeronautics, marine, food and agriculture, and general engineering.

Operating up to 24 hours a day, the automated solutions provided by Okuma are an invaluable resource. SQP specialises in CNC production machining, one-off samples, prototypes and large-volume production, working with almost every material from plastics and synthetics to steel, aluminium, bronze, and sometimes wood. Rare materials not stocked in WA are also used according to customers’ special requirements.

With a reputation for professionalism and excellent workmanship, the company plans to acquire more automated machines to allow increased productivity. Minimal staff and the introduction of robotics is an important part of this objective. SQP also draws on the experience of Automated Solutions Australia (ASA) to optimise the robotic application processes within the facility.

“Investment in more machines that look after themselves, and investment in robotics will be the future, allowing cost reductions to secure and maintain a competitive advantage,” says David.

SQP is also looking towards the future with regard to sustainable manufacturing. Seeing what has been achieved by the Okuma Dream Sites regarding automation and sustainability efforts has been a motivating factor in the company’s lasting relationship with the brand. David explains: “One reason SQP went with Okuma was they had the same philosophy and direction we believed we should be heading with environmentally sustainable manufacturing.”

With a focus on minimal footprint manufacturing, LED lighting is used throughout the SQP workshop and electrical reduction systems are in place to supply energy only when needed, ensuring optimised electrical energy usage. Energy costs are reduced by the use of solar panels capable of providing 100% power during the summer months. Following the philosophy of the Okuma Dream Sites,

SQP also encourages customers to tackle production in an environmentally sustainable manner and is committed to providing services that meet this need for low-impact manufacturing.

SQP sees the importance of low-impact practices to achieve long-term sustainability in manufacturing, working closely with recyclers to ensure materials such as plastics, carbides and long-life breakdown compounds don’t end up in landfill. As industry seeks to reduce its environmental footprint, SQP is excited to lead this challenge, continuously looking to adopt new technologies and practices that allow for smarter, more sustainable manufacturing.

SQP is a company keeping up with a strong demand from a broad customer base in a demanding environment. With the WA economy becoming more buoyant and opening up exciting opportunities for expansion, there is an air of confidence going forward. www.okumaaustralia.com.au www.sqpengineering.com.au

WESTERN AUSTRALIA

Camco leverages reputation for reliability

Based in Canning Vale, WA, Camco Engineering has grown by 100 employees in the past five years, thanks to its highquality work servicing the mining and oil & gas industries. Now the business has set its sights on the defence market. by our customers. It doesn’t matter if the phone rings at 5pm on Friday, we can always respond.” Carson remarks that there is still sometimes the perception of a ‘black box’ surrounding requirements in the defence sector. In overcoming this, Camco has received help from its local senator, who connected the company with the Centre for Defence Industry Capability (CDIC). As a result, a defence business adviser came out and visited the company’s facilities, and Camco been attending network events and engaging with Primes in the sector.

Camco’s Business Development Manager Greg Carson believes the company’s reputation for reliability has influenced their success: “We’ve been servicing the mining sector by repairing critical path assets to keep their operations running reliably, which has reduced the need for capex.

Our success has been about improving the product, working very closely with the end users, and coming up with a way to make operations more predictable.

“Our clients demand high levels of reliability.

One of the major assets on a liquid natural gas plant are the marine loading arms.

These are the structures at the end of the jetties that physically load the ships. When you’ve got a ship ready to load $50m of liquid natural gas, and the potential for delays costing hundreds of thousands of dollars per day in demurrage for the ship to sit in the ocean, those marine loading arms just have to load. We work very closely with original equipment manufacturers, and in partnership with the end users, to make sure things are 100% reliable.”

Camco is now planning to use its extensive

experience and capability in a bid to enter the growing Australian defence industry.

“We have the skill sets and equipment that are directly transferrable to defence,” says Carson. “We’re used to working to exacting standards because of the risk to human life in the mining and oil and gas sectors. We’re big enough that we have critical mass, but still small enough that we can respond quickly and dynamically when required.

That’s been seen as a very positive aspect

“There’s now some traction starting to happen,” adds Carson. “While it’s slow, Defence is a long-term investment for us.

Our facility can meet the demand, but it’s not something we can turn on overnight.

We have met people through the CDIC who have been helpful, and I’m confident will continue to help us in future as we develop and join the Australian defence industry.” www.business.gov.au/cdic www.camcoeng.com.au

We now have EDM Wire Cutter with Rotary Axis Installed

6 Wildon Street, Bellevue WA 6056 t. (08) 9274 4122 f. (08) 9274 5012

Avtech now has achieved QA industry standards

ISO9001:2015 & OHSAS18001:2007

steve@avtech-eng.com.au | avtech-eng.com AMT_AVTechHalfPage_Aug2018_Press.indd 2

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WESTERN AUSTRALIA

FBR completes assembly of Hadrian X construction robot Perth-based company Fastbrick Robotics Limited (FBR) announced on 7 June that it had completed the assembly of its revolutionary bricklaying robot, the Hadrian X. Based in High Wycombe, FBR designs, develops and builds construction robots that can work in demanding outdoor environments. Hadrian X is a construction robot mounted on a truck to easily transport it to and from building sites. It has been designed for the smallest possible worksite footprint, while maintaining a 30-metre reach. Using FBR’s core Dynamic Stabilisation Technology (DST), Hadrian X measures movement caused by wind, vibration and inertia, and counteracts it in real time using advanced algorithms to lay bricks with unprecedented precision.

The Hadrian X is a construction robot mounted on a truck to easily transport it to and from building sites.

Although Hadrian X can lay standard house bricks, it is optimised to work with the Fastbrick Wall System, which uses blocks approximately 12 times bigger than standard bricks and are lighter, stronger and designed to minimise waste. The blocks are fused together using a special adhesive, which bonds in just 45 minutes, holds stronger and results in greater thermal and acoustic properties than traditional mortar.

According to FBR, it will take Hadrian X between one and three days to build the walls of a home, depending on the type of block used and the complexity of the design. In the right environment and working continuously, each robot could build between 100 and 300 homes per year. FBR’s plan is to commercialise a range of products for the construction sector, as well as DSTenabled solutions for other industries. FBR has commenced mechanical testing and commissioning of the Hadrian X, and is working towards testing the DST system to confirm it meets the functional and technical requirements. The programme will then move to factory acceptance testing, where the Hadrian X will build structures in different configurations within a controlled factory environment. Finally it will move outdoors for field testing in preparation for its first house build: a three-bedroom, twobathroom structure known as Build1, scheduled late 2018.

“This represents the start of a very important phase for FBR, where we’ll get the opportunity to globally demonstrate the Hadrian X and get everyone excited about what now exists in construction technology, and what might be possible for the future,” said FBR’s CEO Mike Pivac. Our focus is to scale this product and get it into the market with our partner organisations, as well as applying the underlying technology to a range of products across a range of other sectors. For our team here, that points to a long-term future.”

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The Hadrian X is projected to build the walls of a home in 1-3 days.

The software that drives each component of the Hadrian X has also been completed, with extensive virtual testing of the interaction of those components in the advanced stages.

Testing in a virtual environment has allowed the control systems team to work beyond the mechanical progress of the project, in the process derisking the Hadrian X programme. “We are very pleased from a programme management point of view that we have completed both the mechanical

assembly and the software modules that drive each component of the Hadrian X in parallel, maximising the effectiveness of both teams,” said Chief Techical Officer Mark Pivac. “The ability to apply our learnings from the software development before we arrived at the mechanical testing phase has allowed us to derisk a lot of the work still to come, which is a great result for the company.” www.fbr.com.au

HACO’s latest Affordable Solutions produced to the Highest Standards Haco’s CNC systems are designed to be reliable, cost-effective, and meet your high performance cutting and bending requirements.

Euromaster-S HACO’s pressbrake series are the result of a decades long tradition in designing and manufacturing affordable state-of-the art bending machines for a wide variety of customers and applications.

• 21.5” Fastbend 2D MT Control • 5 Axis Machine Y1-Y2-X-R-C (Other Options Available) • Euro Style Clamping • Lazersafe Lightguard

Multi Touch Technology on 21.5” screen

Vulcan Plasma The VULCAN plasma is our modern high-performance machine, with the cutting table separated from the gantry for table sizes up to 6m x 30m. It is equipped with a Hypertherm cnc control system, precision linear guide ways and self aligning plasma torch collision device, automatic height control and automatic ignition system.

• High Definition • True Hole • Auto Gas Console • Hypertherm Offline Software

• Intuitive Operator Interface • Smart Draft • Multi-Tasking • Step Previewer • Combined Icons • Auto Tooling

36 Mordaunt Circuit, Canning Vale WA 6155

Ph: 08 9456 1555

Email: sales@hacoaustralia.com.au Web: www.hacoaustralia.com.au

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Optimising tooling solutions for oil & gas applications Oil & gas component producers are demanding increased productivity and goods output while maintaining a high degree of quality, reliability and safety in the manufacturing process with a low rate of reject parts. To meet these requirements, Iscar has developed a wide range of innovative tooling solutions that are designed to simplify production, reduce costs and maximise productivity in this challenging sector.

The oil & gas industry has suffered considerably over the past years, due to the global economic crisis that left the major manufacturing players – in both the upstream and downstream sectors – having to meet low market requirements for new reserves, while making severe cuts to their workforce, machinery output and further development.

A positive shift in 2017 set new demands from well-known offshore deep-water oil & gas exploration companies for rig components such as pressure heads and valves, Xmas-tree and wellhead valves, and manifolds. Components of these kinds are all made from or with nickel base exotic materials that can resist extreme conditions such as high-low temperatures, high pressure, and most if not all abrasion and corrosion side-effects.

Parting off Jet-Cut technology The Jet-Cut line provides advanced cut-off machining technology for welded and seamless steel pipes at the OCTG (Oil Country Tubular Goods) industry. Jet-Cut is utilised for grooving and parting operations, applying high-pressure coolant directly to the insert cutting edge. The Jet-Cut high-pressure coolant nozzle outlet is pin-pointed to the cutting zone, to extend insert edge life and eliminate built-up edge while cutting heat resistant alloys as well as stainless steels. In addition to improving chip control at higher cutting speed rate, the self-clamping parting off system reduces setup and machine downtime with favorable improvement in machining time.

The use of Whisperline anti-vibration tools considerably improves machining stability and enhances insert tool life. These factors enable increased productivity and improved surface quality, while using pin-pointed internal coolant technology at the insert’s cutting edge, with improved chip control and edge life for high-quality finishing operations.

SumoCham ICG chip-splitting drilling heads Key factors for successful drilling operations involve a combination of drill body design, optimised cutting-edge geometry and the use of appropriate grades for the selective material being machined, while taking into consideration external environmental conditions and limitations. Iscar’s comprehensive range of hole making tools represents a complete line solution from the smallest drill size up to the largest deep drilling or reaming operations used on components, like valve bodies, valve blocks, fluid ends, rock bits heads and heat exchanger plates.

SumoCham ICG geometry is mostly recommended for deep drilling operations when chip evacuation represents a problematic issue that needs to be solved. The drilling heads are designed with a chip splitting notch technology to create short and narrow chip segments of chips, which can easily be extracted out of the hole through the drill spiral flute and the use of internal coolant.

Whisperline – Anti-vibration boring bars with exchangeable heads Iscar’s Whisperline anti-vibration boring bars were designed to significantly reduce and even eliminate chattering – vibrations – when working with extended overhangs in turning, boring and grooving operations with length ratios of seven to 14 times diameter.

The anti-vibration boring bar system integrates with several types of indexable head configurations, with a “live” inner dampening mechanism that can be applied on standard lathes, vertical turret lathes (VTLs) and multi-tasking mill-turn or turn-mill machines for large-scale parts including manifolds, valves, and wellhead, coupling and tubing components.

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CUTTING TOOLS

sculptured surfaces, in diameters ranging from 40mm to 100mm, with up to 1.5mm depth of cut. These unique features provide a good ramp-down and side-plunging capability with excellent chip flow, and a high metal removal rate due to a small entrance angle that enables high table feed at shallow depth of cut with materials that are machined on oil & gas exploration equipment.

Customised tooling for seal ring grooves

The ICG drilling heads can be mounted on any SumoCham standard drill body with the appropriate pocket size, at diameters range from 14mm to 25.9mm, ensuring IT9-IT10 hole tolerance.

ICG Sumo heads are made with nano-coated grade, featuring high wear resistance and hole surface quality and accuracy in steels, stainless steel and high nickel base materials.

Tang4Feed for high feed milling Producers of oil & gas exploration equipment such as frac pump fluid ends used in hydraulic fracturing procedures, blow-out preventers (BOPs) and valve blocks, have shown great interest in the high-feed milling solutions offered by Iscar.

The latest addition to a wide range of feed mill technologies, Tang4Feed is a family of high-feed shell mill cutters carrying tangentially clamped rhombic inserts with four cutting edges.

Tang4Feed cutters are designed for milling rough/semi-finish and

The most common operations on valve bodies, valve blocks, valve seats and bolt holes, fluid ends and manifolds are seal ring grooves, which are typically produced on challenging materials such as duplex, stainless steels and Inconel-based components.

Seal-ring grooves are an example of a component featuring precise dimensions and high-quality surface finish. The sealing areas in American Petroleum Institute (API) threads are comparatively small with limited contact areas that need to hold the required sealing pressure. Secure and stable machining is essential to ensure a smooth, flexible and efficient process; Iscar has responded to this need by developing tailor-made seal ring grooves for different profiles that meet the required tight tolerances and surface finishes.

The oil & gas market faces many challenges from the producers, the consumable market and the pursuit of a greener environment.

To withstand the unknown variables that affect the global oil & gas market, Iscar works closely with its leading oil & gas customers to continue to develop innovative, efficient, productive and costeffective solutions. www.iscar.com

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CUTTING TOOLS

Keeping rail operators on track Dormer Pramet has supported the railway segment for many years with a wide range of cutting tools for both production and maintenance. Tomáš Hantek of Dormer Pramet investigates the applications cutting tools can support, such as the machining of rail switches and profiles, wheel sets, base plates and coupling mechanisms.

With a year on year increase of 2.6%, the railway industry is enjoying sustainable growth and is expected to be worth more than $280bn by 2020. An increasing demand for passenger and freight rail services is seeing a rapid growth in infrastructure investment around the world. Metalworking provides an invaluable role in the maintenance, repair and manufacture of numerous railway applications, including track, wheels and wagon parts.

The production of new rail wheels can be completed with Dormer Pramet’s standard assortment of RCMX inserts.

Rail switches and profiles An important element in any rail infrastructure is the machining of rail switches and crossings – the moveable sections that guide trains from one track to another. They have an especially limited lifespan, which can vary depending on numerous conditions, such as the level of usage and the surrounding environment.

A railroad switch, for example, created from new material has a standard guarantee of five years. If the switch is made from an applied material or has gone through a process of regeneration or necessary treatment (such as rubbing down or parts exchange), this lowers its guaranteed time to two years.

To ensure the reliability and safety of the switches, they must be updated regularly to remain fully operational. However, this alone is a huge undertaking. For example, in the Czech Republic, which has one of the most extensive rail networks in Europe with 9,000km of track and more than 25,000 switches. Dormer Pramet work with many leading manufacturers to offer both standard and custom tools to produce new railway switches, as well as the renovation of existing ones.

Tools for other switch parts (such as sliding chairs and switch rods) offer several advantages including durability, insert edge stability, shape precision and a rigid solution. Dormer Pramet’s assortment encompasses train and tram switches for all major rail profiles. The 60E1 and 60E2 rail profiles, for example, are the most common, especially in Europe. The type T section rail (flat bottom rails) is suitable for medium and heavy load traffic.

The railway industry is enjoying sustainable growth and expected to be worth more than $280bn by 2020.

condition. As well as the manufacture of new wheels, there is a continuous need for wheel reprofiling through a wide assortment of machining centers from various manufacturers.

Dormer Pramet’s range of holders are suitable for some of the market-leading manufacturers, including Hegenscheidt-MFD and Rafamet machines. Since 1950, Hegenscheidt-MFD has installed more than 2,000 wheel set reprofiling machines around the world.

Both companies use special-purpose wheel lathes for railways, metro, tram, and other light-rail transit systems, along with heavyduty single and double-column vertical turning lathes, large bridgetype milling machines, horizontal lathes and special machines.

Dormer Pramet’s historical co-operation with machine producers and rail repair services has enabled the company to develop a wide range of standard and custom solutions for increasing productivity and reducing costs typically associated with these processes.

This means that the renovation of railway and tramway wheels can be achieved with their standard assortment of inserts (LNMX, SNMX, CNMX), grades and chip breakers. Also, it offers a range of cartridges with pocket protection, allowing for a comprehensive and versatile solution for depth of cuts between 1.0mm and 16.0mm.

A Dormer Pramet customer in Ukraine, for example, required support with the reprofiling of railway wheels made of steel with a high hardness of 450-615HB. The LNMX30 insert with RF chip breaker and T9315 grade achieved a high level of durability and was significantly more productive than an equivalent supplier, machining 12 wheels compared to the competitor’s five.

Another success was with a specific machine builder for wheel set reprofiling in Poland. The customer wanted to resolve a chip breaking issue when machining hardened steel 800-900mpa. Once again, the LNMX30 insert was used, this time with the TF chip breaker and T5315 grade. This combination achieved 50% longer tool life compared to competitors, but also significantly improved chip breaking on the perpendicular surface.

Wheel set machining In new wheel set machining, most parts are manufactured from forged pieces. A major focus is that tools maximise process reliability and support a high-quality finish.

The production of new wheels, particularly roughing and finishing operations, can be completed with Dormer Pramet’s standard assortment of RCMX inserts. Numerous sizes, grades and chip breakers provide options for every workpiece material and cutting

AMT AUG/SEP 2018

Dormer Pramet works with many leading manufacturers to offer both standard and custom tools to produce new railway switches.

CUTTING TOOLS The renovation of railway wheels can be achieved with Dormer Pramet’s standard assortment of inserts, grades and chip breakers.

Dormer Pramet’s T5315 grade is a versatile option designed for turning grey and ductile cast iron, as well as various steels, including hardened steel. It is suitable for roughing and finishing with mediumto-high cutting speeds and capable of both continuous and interrupted cut. This makes it a very versatile option in challenging machining conditions.

Base plates and coupling machining Another area of activity is the machining of bearing or base plates – the connecting element which ensures the rail is attached to the railway tie or sleeper. This operation requires profile milling of this part where customers demand high productivity, while at the same time, respecting specific production limitations and materials.

Milling cutters and drills are ideally suited to base plates production.

Finally, a coupling or coupler is a mechanism for connecting rolling stock to a train. The design of the coupler is standard, and

almost as important as the track gauge. It needs to offer flexibility and convenience for all rolling stock to be coupled together. The equipment that connects the couplings to the rolling stock is known as the draft gear or draw gear.

The manufacture of couplers is an example of the type of niche cutting tools available to wagon producers from Dormer Pramet. Its many years of experience has resulted in various levels of support for the manufacture of axle boxes, center plates, bogie frames and fenders. Dormer Pramet’s approach, of systematically working in partnership with producers of these parts has allowed them to further refine and develop their cutting tool offer.

Tomáš Hantek is International Application Manager for Railway at Dormer Pramet, with customers ranging from state-owned companies to private rail operators. www.dormerpramet.com

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AMT AUG/SEP 2018

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ONE-ON-ONE

Mark Goodsell works for the Australian Industry Group (Ai Group) as its Head for New South Wales (NSW) and its National Lead – Manufacturing. He’s also Executive Director of the Australian Advanced Manufacturing Council (AAMC). He spoke to William Poole.

AMT: Let’s start with the Ai Group and its activities, particularly with regard to manufacturing.

Mark Goodsell: The Ai Group is the national industry association for the industrial sector, not limited to but very much centred on manufacturing. It’s interesting that these days it’s hard to know where the boundaries between industries begin and end. Even conjuring up a concept of what manufacturing is can be difficult. You’ve got an increasing intersection with the ICT (information and communication technology) sector, manifesting itself in the digitisation revolution or Industry 4.0. Manufacturing has always had a strong overlap with the construction supply chain, and the trend to offsite prefabrication means that is an even stronger interaction now. Even in the food supply chain, it’s hard to know where a farm ends and foodprocessing starts. And increasingly manufacturers derive revenue from the services they supply off the back of manufacturing. So it may be hard to define what manufacturing is these days, except that at the moment in Australia, making things is a very solid source of revenue and employment for a lot of people.

Our primary reason for existing is to give that sector a voice in the political and community debates about policy settings and the role of manufacturing in the economy and the community as a generator of employment and wealth. We engage with community expectations about how we conduct business, how safe we are, how environmentally responsible we must be. So we’re the collective voice, and we do and say things that individual companies can’t do and say effectively or comfortably on their own. There are lots of other voices in the community who are noisy and who are legitimately listened to, and it’s important that industry has a voice that is legitimate and listened to as well, and that’s the main role we play, with the support of our members.

The process of representing industry gives us technical expertise in a number of key areas, which we provide back as services to our members. We develop streams of information, expertise and practical knowledge in issues like employment relations, safety, energy, standards or trade, which the members can benefit from as individual companies.

AMT: Tell us about your role.

GM: My formal role is Head of NSW, a key point of intersection with the NSW Government on issues that impact on our members. I also have a brief to oversee our manufacturing membership nationally, which is a significant majority of our membership, making sure we’re across the issues they’re facing and responding appropriately, in terms of what we say to government, media and the community, and in the help we give individual companies.

AMT: What does that help for individual companies actually entail?

GM: It’s a combination of information streams, networks, training and consultancy, but all grounded in strong industry experience with the advantage of being able to solve problems through a combination of connectedness and influence as well as technical capacity. A

AMT AUG/SEP 2018

foundation area is workplace relations. We help companies manage their workplace relations including their wage-setting systems, whether through formal bargaining or otherwise, and we provide employment legal services to support that where a legal response helps. We do an increasing amount of strategic work with companies understanding the workplace relations and skills implications that technology and business model change may bring about. Safety is also a core service.

We run a group training scheme for apprenticeships and traineeships; we’re a registered training organisation (RTO) that provides broader training specialising in compliance requirements for industrial companies and development of front-line supervision. When you look at what’s going on in an organisation and look for points of intervention where you can really improve things, development of supervisors comes up frequently. It’s one of those foundation issues that a good company needs to get right. And we do a lot of work in training and development there.

Trade is another key area. We help companies who export with issues on trade, market access, certificates of origin and so on. We feed our experience in those services directly into discussions with government on the terms and efficacy of trade agreements.

More latterly, unfortunately, energy has become an issue that a lot of companies have to worry about. The magnitude of cost increases in energy means a lot more companies are having to quickly understand their energy bills and the energy market in which they are consumers. So we have been responding to that, both in the national policy debate on behalf of industrial users, but also helping our members understand how to be a smarter consumer in a rapidly changing industrial energy market.

The other area that’s emerging for us comes under the broad label of innovation and advanced manufacturing. What does it mean to be a modern manufacturer? What’s a sustainable model of manufacturing in a higher-cost country like Australia in a globalised world? Australia has been on a multi-decade transition from a protected mass-manufacturing model, where we tried to make pretty much everything here, to a more open model, which requires a very different mindset and different skills and capabilities. One element of that is exporting, how you engage in global markets, both in terms of understanding global supply chains, plus the more day-to-day stuff about physically moving goods around. The other element is having an innovation mindset; what that means; what that looks like – the extent to which you need to engage with external research agencies, say universities or CSIRO, to build knowledge your competitors don’t have; understanding the government support mechanisms you can access. All those things come under an innovation or transformation agenda, linked more latterly to Industry 4.0, the digitisation wave. It’s about helping companies understand its importance and role in the future of being a manufacturer in Australia, showcasing people who are doing it well, and helping people to start on that journey and help them access assistance and information.

HEADING

AMT: You’re also Executive Director of the Australian Advanced Manufacturing Council (AAMC). Tell us what that involves.

GM: The AAMC has been around for about four years. It was independent until last year and then decided to be more closely integrated with Ai Group. The AAMC was founded by a group of manufacturing CEOs, partly driven by concerns that the debate about the future of manufacturing and industry in Australia was dominated by the then-looming closure of the car industry, and a poorly informed perception that Australia couldn’t make anything anymore. These companies could see the technology and economic trends being much more complex than that, and that there was and would continue to be a model of success for manufacturing in Australia, but it would require at least two things.

It required some sensible policy focus, smart policy adjustments, particularly around global connections and encouraging innovation. And it required a mindset shift among enough of industry for manufacturing to continue to be a substantial part of the economy.

So the AAMC’s role was to remind government in particular, and also the community and industry, that there is such a thing called advanced manufacturing, it’s an evolution of traditional manufacturing, it can be successful in Australia, and there are examples of that success that everyone should know about and feel good about. And it’s been pretty successful; I’ve been to many events where Ministers and Premiers have talked about advanced manufacturing as enthusiastically as they’ve talked about education, tourism or mining as part of the future of Australian industry. I think five of the six states now have some form of advanced manufacturing policy framework.

We have the Advanced Manufacturing Growth Centre (AMGC) and Innovative Manufacturing CRC (IMCRC) doing great connected work with industry. So it’s got really good traction in mainstreaming this notion that Australian manufacturing needs to, and is, morphing into an advanced manufacturing mode, and acknowledging and encouraging the mindset and policy settings that are contributing to that.

AMT: What do you regard as the greatest strengths for Australian manufacturing?

GM: We have a long history of manufacturing things here. We have a legacy and a culture of making stuff, originally driven by the tyranny of distance from the industrial base in the global north. We have a relatively highly educated workforce, though we should not take that for granted. We have quite sophisticated consumer markets that are good small testing grounds for products - we’re willing to try new things. We are politically stable, though in the recent decade or so we haven’t had terrific policy stability.

Continued next page

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ONE-ON-ONE

Continued from previous page

Property rights are well acknowledged. Until recently we’ve had good supply of cheap and reliable energy. We’re a healthy community, and that shouldn’t be under-estimated. It’s in industry’s interests that our workforce is both physically and mentally healthy. We’re close to Asia, the part of the globe which is going to grow the most in the foreseeable future. So there’s a whole range of reasons why Australia has made things and with the appropriate adjustments can continue to derive value from the manufacturing value chain.

Some of the best opportunities continue to lie in adding value to our natural strength in both agriculture and mining. Because of our natural resource base, there are opportunities to add value through secondary processing of minerals and agricultural products, but also providing the capital equipment that drives those industries. Mining equipment and agricultural equipment are strengths because the supply chain they serve starts here.

So manufacturing should continue to be an important part of the Australian economy. It’s not going to employ 40% of the population as it may have done in the past. The important thing is that the engagement we do have is at the leading edge of trends in manufacturing, and we don’t get stuck in old modes of production and old technology and old economic structures and think that they won’t change. And it’s important we have an eye to the value we’re creating in terms of the wages we pay and the profits we generate.

It’s not simply a matter of numbers of jobs, it’s about wealth and good career creation. It’s about both economic and community contribution.

It’s interesting that Australia still has over 900,000 people directly employed in manufacturing. If you take a different cut of the ABS statistics and add in the jobs that are now outsourced to other sectors but which traditionally may have been done by a manufacturing company itself, it’s probably up near 1.2m or so. Either way we are in the top four or five employing industries in the country. It dwarfs the number of people employed in mining, it’s double the number employed in finance, and most of the jobs are full-time jobs unlike some service sectors So manufacturing shouldn’t overestimate its importance: a right-toexist mentality is not helpful. It should be proud of its economic and community contribution, and should always have an eye to improving and developing as a legitimate part of a mixed economy. It should be proud and realistic about its role in that mix, and ensure that government and community recognises it. I think we’ve made some significant changes to the government’s view in recent years about that role.

AMT: And what are the biggest challenges it faces?

GM: There are two big challenges. The first is energy. There’s been a manifest failure over the last decade or so to have a clear-eyed, bipartisan, long-term policy on energy, including energy transformation in Australia to maintain as our energy advantage. That’s been a failure which we’re all trying very hard to address at the moment. It’s a foundation for the future. The other challenge is centred around skills but I think it also includes community perceptions about the value and benefit of a career in manufacturing and its related activities.

Because we’ve had this period of high-profile reductions in the car industry and the steel industry, there’s this lingering public perception, and sometimes a political perception, that we don’t make anything in Australia anymore and worse, we can’t do so competitively. And that feeds into a perception that pursuing a career in manufacturing or a related sector is somehow a short-sighted decision, when in fact the industry is crying out for new people. It’s sometimes expressed as we can’t find the skills but it’s often that we can’t find people, even unskilled or semi-skilled people. And I think part of it is this perception that there are better places to work.

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“Manufacturing should be proud of its economic and community contribution, and should always have an eye to improving and developing as a legitimate part of a mixed economy. It should be proud and realistic about its role in that mix, and ensure that government and community recognises it.”

That’s a challenge for the industry - that we realise that we’re in a war for talent. We need to have a very good view of ourselves and the value we provide, but a realistic view particularly about what young people want from employment and careers and skill development, and respond to those things rather than just hoping that they happen the same way they happened in the past, because they won’t. Some companies are doing well in that regard and some companies are struggling to make those adjustments, but it is a broader issue about the community perception about what a career in manufacturing looks like and where it can take you. We should be presenting our case with some confidence that there’s some really cool stuff being done in factories, workshops and R&D labs and good careers and marketable skills can be developed in the sector.

AMT: I suppose the challenge is that whereas a kid growing up in Germany would see manufacturing offering a definite career path, we still need to build that perception here.

GM: There’s an old joke about how in Germany being a lawyer is what you do if you’re not smart enough to be an engineer! Whereas in the Anglo countries, including Australia, there’s a perception that it’s the other way around. And the market for lawyers is particularly traumatic at the moment: I think fewer than half of the law graduates work in law. But often peoples’ decisions and families’ decisions about what a good career is can be up to half a generation behind reality.

But right at the moment, local manufacturing has put on tens of thousands of jobs over the last year or two, contrary to popular belief.

There’s opportunities in different areas around the country. Our job and the industry’s job is to be realistic but proud of what we do and the wealth we generate and the things we make; not getting lulled into thinking that change isn’t upon us both in a technological sense and in a business model sense, but that change creates as much opportunity as it creates difficulty.

AMT: Tell us about your background how you ended up in this job.

GM: I come from five generations of manufacturers and engineering trades. I’m the first one not to have a “real” job! My family in the 1880s had the first mechanised brickworks in Sydney, so my roots are in manufacturing. I studied economics and law, but I’ve ended up in manufacturing through industrial relations, one of the core streams of Ai Group. I joined its predecessor MTIA three decades ago but I’ve had quite a few different jobs because I’ve always been intensely interested not just in industrial relations but in the economic and other forces that swirl around it, this broad palette of issues that influence the conduct and success of manufacturing in Australia. I’ve got the perfect job in that sense; I’m never happier than when I’m talking to a manufacturer about what they’re doing, the opportunities they’ve got, and the things that will help them. It’s an exciting time to be in manufacturing and I hope most manufacturers realise that. www.aigroup.com.au www.aamc.org.au

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BUSINESS MANAGEMENT

The business of business management – winning in Industry 4.0 Australian advanced manufacturers have the power to contribute to the growth of the economy and be competitive on the global stage through sophisticated business processes, involving innovation and technology. By John Spender.

Small-to-medium enterprises (SMEs) are in the best position to excel in advanced manufacturing because their size makes them agile; allowing them to be more flexible, innovative and take more risks.

However, their barriers to long term growth are their lack of planning and organising. The Industry 4.0 era, is one of automation and data exchange, with new markets, new products, new technologies and new ways to manufacture existing goods.

For an SME to succeed in Industry 4.0, the question manufacturers need to ask is, where do we want to go and how do we get there?

The answer is reliant on two key factors: 1. Assessing practical areas of business management – namely strategy.

2. Utilising grants to help develop their strategic plan and increase budgets.

Getting strategy right – redefine the long-term Technology is an ongoing strategic negotiation that challenges businesses to evolve rapidly. The rapid pace of change means business owners have to work in compressed timeframes, making it harder to plan. A common misconception is that planning isn’t relevant in this changing environment. However, a business needs a strategic plan more than ever, because it presents a vision for the future and because without it, there’s no direction or accountability.

It also makes an organisation more responsive and provides a clear focus by outlining objectives with actions.

The key difference between the plans of the past and the plans of today is that owners need to redefine what long-term is. While historically a long-range plan was approximately 10 years, today business owners should not be forecasting a period longer than two to three years. It’s also best to divide the strategy into manageable stages.

This is a good timeframe to create a framework with achievable goals, and when used in conjunction with monitoring tools such as a balanced scorecard, can enable a business to see areas that need improvement. A strategy should also carefully align with budget, cashflow and forecasts.

Today’s manufacturers are experiencing the benefits and challenges of new interconnected and intelligent manufacturing technologies and system changes such as automation. In last year’s Making Western Sydney Greater report, 88% of manufacturers in Western Sydney believed that automation would be good for their business, with 65% believing it would displace more jobs than it will create by 2030.

Technology is having a huge impact on the industry and businesses, leading to increasing profits, changing workforces and driving efficiencies. Companies of all sizes are realigning their business and operational models to take advantage of new, disruptive technologies.

Those that thrive and succeed in this space will be the ones who can distinguish between what is new and what is useful.

Getting ‘buy-in’ What’s the point of getting ‘buy-in’? While it’s one thing to have a plan in your head, an owner or executive must write it down so that they can share their direction, and in doing so the organisation can rally around. Having a strategy sounds straightforward but a wellunderstood and well-executed one can:

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• increase engagement • present new opportunities • give agreement on goals • build culture • strengthen the business through good management and governance.

Strategy takes time and effort. It requires a comprehensive assessment of both positive and negative internal and external conditions, accompanied with the best ways to leverage the positives and minimise the negatives through clear goals, tasks and methodology.

Implementation of a plan requires buy-in from all the management team, and strategy days are a good way to achieve this. A strategy day has agenda items with a focus area around building achievable goals.

The balanced scorecard A balanced scorecard is a tool, used to assess and measure the progress of a business and its path toward the business’ overall strategy. It helps an organisation translate its vision, communicate, plan, learn, and enable feedback so that it can continue to grow.

Balanced scorecards allow owners and executives to understand how each department is functioning through a variety of perspectives.

From our experience at William Buck, manufacturers face either one of two key issues: not knowing what KPIs to track to allow for improvement; or being unable to gather enough data to accurately assess the measures you want to.

BUSINESS MANAGEMENT HEADING

There are four drivers known as KPIs in a balanced scorecard. These KPIS help managers develop their resource needs by focusing on the areas of finance, customer satisfaction, internal business functions and innovation, to ensure growth. These areas are evaluated by looking at whether current objectives, targets and initiatives are being met and measures are efficient. For example, it may find areas of skill gaps, which is a major issue in manufacturing, which could mean devising a plan to collaborate more with external bodies.

Costs of strategy While developing a strategy sounds good in theory, business owners often say that they are too busy, or that the costs are too high.

However, successful business outcomes have been proven to stem from having a strategy in place. One thing we’ve noticed is that the most effective strategies don’t require a huge investment, but do need vision and dedication. You need to plan for growth; you can’t wait for it to happen organically.

As part of your plan, it’s important to see if there are programmes or grants for your business, which give you extra money in your budget and can aid in cashflow. Furthermore, it is common now for manufacturers to collaborate with industry networks, research bodies and even competitors to gain competitive advantage. Creating these knowledge networks will assist in your business management.

With SMEs making up 97% of the Australian economy, incentives to boost SMEs – particularly in high growth areas such as manufacturing – are available. The Australian Government has developed the Entrepreneurs’ Programme specifically for SMEs, which enables them to be more innovative, productive and competitive. More than 10,000 businesses have accessed the Programme and its grants and 98% of these participants have said that it has contributed to their further success and improvement.

The Programme gives tailored advice and assistance to businesses operating in growth sectors such as advanced manufacturing, to improve their business management through the engagement of independent, skilled and experienced business advisors with privatesector experience. In particular, the Entrepreneurial Growth Grant is available to SMEs. There are a number of projects that the funding can be used for, including strategic planning, where the Entrepreneurial Growth Grant will match dollar for dollar any expenditure for the use of a professional services firm. The Programme has helped businesses increase turnover, and improve or develop new products and services.

There are eligibility requirements, including having a turnover of between $1.5m and $100m, a three-year trading history, having an ABN, being financially solvent, not being a tax-exempt organisation and participating in one of the growth sectors.

To prosper, the manufacturing sector must improve its access to global supply chains and international markets; engage with numerous networks, improve management and workforce skills, develop leadership capabilities, and improve internal capabilities within the business. To achieve this requires careful business management, beginning with strategic management, so that visions can be realised.

John Spender is the Director of Business Advisory at William Buck Chartered Accountants and Advisors. Australia’s manufacturing industry is volatile and unpredictable for any business. Understanding and analysing the experiences of business owners and managers helps William Buck to identify the important issues and priorities impacting the industry. If you’d like to take part in the Making Western Sydney Greater survey, visit http://tinyurl.com/ydxgxstt. www.williambuck.com

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BUSINESS MANAGEMENT

Innovation – Invention – Collaboration Open Innovation is a term when companies and people literally open up their problems and issues to the world looking for advice and solutions. It is possibly the most obvious form of collaboration, writes Roger La Salle.

There are a lot of issues with the so-called ‘Open Innovation’ model – a prime example of course is ownership of intellectual property (IP). This has the potential to be a minefield if not properly understood and managed. However, before we go too far down the path of collaboration and open innovation, it may first be useful to agree on what we even mean by innovation, a word that seems to have been corrupted by so many, achieving nothing more that turning the simple into the complex!

It can be argued that innovation is the basis for all things new and better. But what inspires innovation and new ideas? More to the point, what is the link between an innovative or inventive idea and an outcome?

If we think of innovation when applied to building a business and making money, we need to think about the risks in business. In most cases when an idea is being pursued and a technology development is being undertaken, whether it be an IT solution, new app, a tangible product or a new service, in essence there are only two risks that need to be considered.

The first is what we may refer to as technical risk, which means: can the technologist achieve the desired outcome? In science and technology, for the most part, the technologist will deliver a solution or at least be able to give some insight as to the risks involved. For example, if we were to ask a technologist to give us anti-gravity boots, he/she would easily be able to assign the risks associated with that outcome. In this case of course the risk would be enormous.On the other hand if we asked for a clock with hands made from LED strips that were clearly visible in darkness, the answer would be that this is achievable with no technical risk. In short, technical risk is something we can generally measure and quantify.

However, assuming I did achieve the technical outcome with my innovation, the real questions to ask – and which too many innovators and even large companies get so wrong so often – are “Can I sell it?” and “Will there be a market?”

Market risk is without doubt out the single biggest risk in bringing new products to market.

With this in mind we may be able to coin a definition of innovation that effectively reduces market risk, and with that we can explore the opportunity landscape to hopefully create successful innovation.

When we look at some products from the past – Google, the iPhone, MasterCard and Visa, Nokia, Seiko, the IBM PC and Windows – one thing these all have in common is that none were first to market. Indeed all were followers of some prior art. And yet they were all great successes. In short the secret to mitigating market risk is to find a product or service everybody is buying and simply change it in some way to add value.

Thus a definition for innovation can follow.

The common synonyms for innovation are improvement or advancement. Further, if we take it that people buy things because they see value for money, then perhaps the best definition for innovation is ‘Change that Adds Value’. Indeed this derivation and definition was coined in my book ‘Think New’ many years ago.

This definition has now been adopted by many organisations and innovation practitioners worldwide.

Whereas innovation may be about making changes for improvement, inventions are more about novelty. Novelty of course is an essential ingredient to a successful patent application. Having said that, there are many innovations that do contain elements of novelty and are thus also patentable. Indeed one may argue there

AMT AUG/SEP 2018

are few absolutely new inventions, though those that may fall into this category include the electric lightbulb, the transistor device, the atomic bomb, radar and the laser.

Given this understanding of innovation, the task now falls to the creation of innovations. How does one do that and why is collaboration so vital to successful innovation?

The secret to this comes from three elements, all essential ingredients that underpin successful innovation: • Observation • Knowhow born of experience • Connections or collaborations

Observation The key to finding opportunities for innovation lies in observation – looking at the way people interact with the world, with products and services, and finding the gaps and value-added opportunities. Of course the idea embodied in the relatively new concept of Design Thinking asks one to look at the customer. However, from my reading of this methodology, the fact is that it fails to ask how one looks at the customer. Furthermore it should also ask you to look at the customer’s customer. For example, is the retailer your customer, or the purchaser and user of your product? The packaging industry seems to have worked that one out, for example in attending to supermarket shelf storage space and customer convenience in opening and storing products!

Indeed there are five things that Design Thinking seems to miss in exploring customer behaviour and the way people interact with products and the world. I addressed these in my book ‘Think Next’, published over a decade ago. They are: predictable activity; widespread activity; repetitious activity; comparative activity; and trends.

If we explore our customer with these five “seeds” of opportunity, the game gets a lot easier. It’s made even easier if you use the eight thinking triggers I refer to as ‘Catalysts’ to stimulate thoughts about these seeds. This is what I refer to as ‘Opportunity Capture’.

Knowhow born of experience Young children are often good at seeing things that are often overlooked by people who have been doing the same thing the same way for too long. The young, uninitiated and untarnished with tradition, are often very good at seeing what may be possible, but what they lack is knowledge and experience in understanding how such opportunities may be addressed. This is where experience and an older head is so valuable in innovation outcomes.

There is a great saying: “Knowledge is not wisdom, wisdom comes from experience and experience comes with age.”

Below are some examples that illustrate why knowledge born of experience is so important: • An inventor correctly realised that the power cord on a hairdresser’s hairdryer was a problem. His solution was a battery-operated hairdryer. What his lack of knowledge failed to identify was that, though the idea had some merit, even a car battery would not have the capacity to run a hairdryer.

The inventor toiled away at this innovation for far too long and spent quite a lot of money before acquiring the knowledge that at this point in battery development, his idea was simply impractical.

BUSINESS MANAGEMENT • A building company had four separate, very large innovation teams wrestling to find ways to identify if, after scaffolding had been put in place and certified as safe, it was subsequently being moved by subcontractors and perhaps rendered unsafe.

When the problem was put to an older head the answer was simple – something the inexperienced innovation teams had never even heard of. Tie the scaffolding to the building with Tamper Tape that fractures on movement. This was a great solution, but one the young innovators were simply too inexperienced to have even considered.

• An inventor proposed a warning device that alerted parents if a child had unfastened their seatbelt. This was nice in theory, but overlooked the fact that many cars already have alarms to identify if someone is sitting on a seat with the seatbelt unfastened. Perhaps an easier solution could be a seat belt clip latch that requires stronger hands to undo, or maybe a two-handed operation action much like a safety interlock on a power tool. We refer to this as a ‘re-question’. It asks you to explore the real issue and decide what is really the best question to be asked in addressing a problem.

In my world we refer to the type of connections from problem to solution as ‘connecting the dots’. One of the great skills of clever entrepreneurs and innovators is to see the linkages between seemingly unrelated issues. This is where broadly skilled technologists and open-minded thinkers come to the fore.

Possibly the best example is in the automotive sector. Auto-makers are really just assemblers of parts made in most cases by third parties. No auto-maker can make all the chassis components, the bodywork, the paint or the rubber, the bushes, shock absorbers, alternators, windscreen wipers, the complex electronics, the air conditioners, or even something as simple as the seats and seatbelts. Of course tyres, bearings and even engine parts are provided by collaborating third-party suppliers.

Collaboration and finding the best parties to assist you on your innovation journey is essential, whether it is in the design, the engineering, the manufacture, the business planning and even the sale & marketing. Indeed even the very largest manufacturers, from food to cosmetics, usually outsource their packaging and their advertising campaigns. This is collaboration at its best, and collaboration is definitely the name of the game when it comes to successful innovation outcomes.

Roger La Salle trains people in innovation, marketing and the new emerging art of Opportunity Capture. His ‘Matrix Thinking’ methodology is now used in organisations in more than 29 countries. La Salle is a sought-after speaker on innovation, opportunity and business development, is the author of four books, and is a director and former CEO of the Innovation Centre of Victoria (INNOVIC) as well as a number of companies, both in Australia and overseas. www.innovationtraining.com.au www.matrixthinking.com

For example, suppose I run a lumber business, cutting up trees to provide timber for the building industry. What possible connection does that have with mathematics? Perhaps none, you may think; old-fashioned timber managers may certainly have thought so. But in fact linear programming, while quite an old science these days, can optimise the way timber is cut to provide massive additional profits. But in the closed non-collaborative model, such knowledge may never be acquired. Similarly: • How could technologies developed in putting a man on the Moon possibly connect to the business of pots and pans?

The answer: Teflon coating.

• Clocks and radio paging – is there a connection? Indeed there is. Imagine a clock equipped with a radio paging receiver to receive time signals and keep perfect time, even updating for summertime changes. Such clocks were developed in Australia long before cellphones with perfect time.

• How about the packaging business and home insulation?

Of course, use bubble wrap as the ideal insulator. It’s lightweight, cheap, and easy to install, with fire-retardant grades also available.

• Or optics and home insulation? Of course, use a reflective coating on one side of the bubble wrap to reflect radiated heat.

And what about physiotherapy and reducing carbon emissions?

The toothbrush and ceramic crystals? Extruded plastic “core flute” sheeting and aluminium extrusions? The connections in each of these cases spawned real businesses.

There is an endless list of these seemingly unrelated disciplines that can be connected with appropriate knowledge and collaboration between disciplines. Indeed this is why the new paradigm of ‘Opportunity Capture’ is emerging as the preferred approach to the more narrow discipline of traditional innovation. All these numerous examples show that perhaps inexperienced people may have great value in identifying possible innovation opportunities, but really fail to deliver when it comes to real and viable outcomes.

Connections and collaborations There are few cases where one individual or even one organisation can solve all the problems and take an idea from mind to market without assistance – or without collaboration.

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Getting innovation and production to play together The journey from drawing board to reality is a difficult one. There are a myriad of obstacles to overcome, so it’s vital that you have all of your ducks in a row from the beginning. Integra Systems has seen the chaos that can arise from not having a well-integrated production process.

Led by the Hughes family, the team at Integra believes that communication, trust and the right organisational alignment are among the key elements in ensuring innovation and production ‘play nice’ together. “Innovation is not always about massive, inventive breakthroughs,” explains Integra’s Commercial Director, Erika Hughes. “Working together with the production team allows you to create new innovations on a smaller scale, not just on these grand, inventive scales.

“I think a lot of people make the mistake of trying to innovate with old technology and old mindsets and old machinery. I think that’s a really important factor – thinking more about advanced manufacturing in a high-tech manufacturing era. Innovation is working together with an innovative approach to production, as well as design.”

The innovation and design handshake As Managing Director of Integra, Paul Hughes believes it’s impossible to innovate without having design and production teams that are closely aligned, geographically, physically and culturally.

“Culturally, it’s paramount your design and production teams are talking together, otherwise you can’t progress innovation,” Paul observes. “Designers really need direct access to the production machinery and the tools, and the production team members need to be able to directly feed back their knowledge to designers so that innovation and change can happen.”

Director of Innovation at Integra, Russell Hughes, expands on Paul’s philosophy, explaining how product design and manufacturing relies heavily on incremental advances in the development phase on the path to becoming reality.

“Once you set out the design, if you haven’t got the manufacturing involved, well, sometimes [the product] can’t be made,” Russell says. “So you’ve got to do a lot of little incremental steps all the way and that gets the product perfect. It won’t be perfect the first time you go at it but that’s what innovation’s about.”

of your product and it’ll just basically become commoditised. You remove your advantage.”

Paul and Russell recount the story of a local manufacturer who transferred his operations to China in pursuit of cost savings’. As Russell remarks, this decision was arguably a fatal one for the company in question.

“They were making barbecues in Australia and they transferred it all to China because it was cheap. But the end product was an absolute mess to put together. It was worse than trying to build the Ettamogah Pub! “They couldn’t talk to one another,” Russell continues. “Screws didn’t fit, everything was a real mess. But, if they could have been together – the manufacturer working with the designers – they could have made a lovely job of it. Instead, they farmed it offshore too quickly and they struggled.”

It comes down to trust The ability to trust the people you’re working with, and sharing their values, is vital.

Paul agrees: “The innovation is often not in the product itself – it’s in the process. It might be the way you apply a particular machine to do a job, more so than the actual product that’s being made.”

“You can’t have open innovation without trust,” states Erika.

“Anybody who’s got a really, really good idea needs to find a partner who’s able to make that real for them, so their values need to be aligned.

This is a philosophy that underscores everything Integra does. For example, the two key designers at Integra come from different points of view – one is a mechanical designer and the other comes from an industrial design background.

“They also need to understand the whole process, not just the idea.

They need to know the whole product development process then partner up with a company who is like-minded and can make that a reality for them.”

“They’re quite often in tradesman’s clothes, spending half their day at the computer on the CAD and then rest of the time in the factory putting together prototypes or that kind of thing,” laughs Paul.

So what would be the most important piece of advice for someone with a great idea looking to take the next step?

Russell adds: “You wouldn’t know, really, whether they’re part of the production team or the design team, they’re so well integrated.”

Going offshore could mean off-kilter With their decades of experience, the Hughes’ have numerous examples at hand of what can go wrong when cultural and physical aspects of the production process aren’t carefully aligned. Paul and Russell believe that, while the savings to your bottom-line might seem too good to pass up, going offshore to countries like China can cost more in the long run.

“We’ve come across a lot of manufacturers who’ve got their own product but they’ve decided to take it offshore and get it out of a low-cost country like China,” explains Paul. “But our theory is, as soon as the design stops, the innovation stops. You lose control

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“That’s a hard one,” muses Paul. “We see a lot of people with a good idea go to a company that might be a pure industrial design company, and the industrial design companies who haven’t got manufacturing associated directly with their company can tend to get people in a constant loop of design without really getting them a full outcome. Or they might hand over a design prematurely for manufacture, when it’s not really ready. I think it is important for people who are looking for an idea to be made to look at someone who can completely see that product through.”

“What we’ve always said is, not one person knows everything,” admits Erika. “So working with clients, we use the terminology ‘open innovation’. It’s about staff having an intimate knowledge of the clients. All that knowledge combined with our innovative thinking is what creates something extraordinary.” www.integrasystems.com.au

BUSINESS MANAGEMENT

Blockchain beyond Bitcoin Blockchain is making waves for its ability to drive competitive growth in manufacturing. By Paul Mylon.

Manufacturing companies already use various technologies to address operational and product complexity, From ERP or PLM to custom solutions. These investments have helped improve visibility and efficiency within their organisations and between major supply chain partners. Yet the challenges in managing extended enterprises beyond tier-one suppliers, to introduce and deliver on new valueadded aftermarket services, and to do so while simultaneously managing costs, are testing existing technologies.

How do you structure your business for growth and profitability?

Blockchain offers manufacturers an intriguing value proposition to augment existing technology investments. It provides an immutable transactional record that maintains and records data in a way that allows multiple stakeholders to share access to it confidently and securely.

Blockchain, like many new technologies, is full of promise but is still in the early stages of development. As companies explore that promise, they should do so with a firm focus on identifying use cases that accomplish two objectives: demonstrating that blockchain can deliver business value; and highlighting the role it can play within an overall digital technology architecture. While blockchain’s general characteristics align with many challenges faced by the manufacturing industry, it should not be implemented for implementation’s sake.

Like any new technology, it must deliver proven value.

The manufacturing industry is already moving forward in several areas. One area is tracking, where companies are targeting specific proof of concepts to ensure the correct individuals are certified to perform complex tasks, and the authenticity of all items in the supply chain is fully understood. Assisting with the reduction in counterfeit goods is another area where progress has been made, as blockchain significantly increases transparency of exchanges, helping to minimise fraudulent transactions and the potential catastrophic consequences of faulty parts.

Accenture has identified key steps toward industrialisation of blockchain. Beginning with the discovery of use cases and potential value, the journey should quickly move into the agile development of proofs of concept to test the business value and viability of blockchain for those cases. Ultimately, the objective is to scale validated proofs of concept.

Blockchain is designed to provide highly secure, auditable, and traceable data records across a distributed population. The manufacturing industry uses a geographically distributed supply chain that serves an equally distributed set of operators, all of whom value data traceability, auditability, and security.

Before embarking, companies should remember that blockchain is like any other technology investment: the business case comes first. It is also a component of overall digital transformation, not the transformation itself, and adoption of blockchain will hinge not just on the technology, but on the ecosystems of participants that use it.

While the technology and standards are still maturing, manufacturing companies have a unique opportunity to prove the business value of blockchain systematically and set its place alongside other technologies in their digital strategies.

“Within every business there are key considerations that will create the best environment for growth.”

Ian Cattanach Director, William Buck Contact Ian or a member of the manufacturing team for a

FREE CONSULTATION

T: +61 (3) 9824 8555

E: vic.manufacturing@williambuck.com

Blockchain is real and now is the time for companies to learn and prepare.

Paul Mylon leads Accenture’s Aerospace and Defence practice in Australia and New Zealand. www.accenture.com

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How the conceptual design stage can benefit engineering projects Most manufacturing businesses are under continuous pressure to minimise costs. Production engineers and management usually have a few ideas on how to improve processes and equipment, but are always under time constraints when it comes to managing the daily flow of tasks. By Alexander Berdyshevski.

One quite common approach is to invite a potential supplier of the services required, explain an improvement idea, and ask for a quote. It usually works well for a simple straightforward application, but for complex cases this approach presents a number of issues. The main cause for all these issues is the high level of uncertainty of project details at this stage.

Automation/integration engineering projects usually face a number of possible solutions – for example variable levels of automation require different capital spending. Attempts to lock in a single solution without investigating all the possible options carry a risk of going along the less efficient path. Adjustments during project implementations are always costly and very stressful for both customer and supplier. A single-option approach can also be a show-stopper if the capital cost is hard to justify for the current business needs.

High levels of uncertainty present a challenge for potential suppliers. To insure themselves from potential losses there has to be a large safety margin allocated in the estimation to cover the unknown variables.

In some cases the resultant price estimates reach a level where project becomes unviable. But if a potential supplier reduces the safety margin to win the tender and runs out of the funds in the middle of the project it can cause a stalemate for the project.

In conclusion: if a quote is requested at the very start of the project, the high level of uncertainty can create multiple unfavourable scenarios, where a business misses the opportunity to implement the project, selects the less efficient option, or incurs funding issues during implementation stage.

A common practice to minimise the uncertainty during quotation stage is to develop a document outlining user requirements. This document is always very helpful during the project estimation stage, but it still does not provide the level of detail to significantly minimise design uncertainty. It also does not allow options to investigate multiple options for the most efficient solution.

Implementing a conceptual design stage before requesting a final quote provides a number of benefits to the business.

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The purpose of the conceptual design stage is to generate a few possible conceptual solutions with sufficient level of details to allow evaluation and selection of the most efficient option in a specific business environment. The usual scope includes time studies, process details calculations, manufacturing lines layout, basic 3D modelling, simulations, preliminary capital spending estimations, expected saving and payback, and net present value (NPV) calculations.

Increased levels of detail after the conceptual design stage make it easier for potential suppliers to provide an estimate with reasonable accuracy. In some complex cases proposed engineering solutions may be associated with high implementation risk. It makes sense to include prototyping in the conceptual design stage to prove the proposed design solution.

One of the additional benefits of the conceptual design stage is an improved justification of the project to the management due to the high level of details. Our experience demonstrates that expenses associated with conceptual design stage have a quick payback.

In one recent case, initial quotations for the automation project were between $550k and $700k, which made the project unviable. After a conceptual design stage where three options were generated, the most suitable one was selected, with capital requirement of $350k and payback under two years. Provision was made to

implement a certain design solution to undertake stage 2 of the project later on if business conditions are changed. The conceptual design stage cost was less than $8k, with payback estimated at under one month, and the additional benefit of making the project viable.

In another example, conceptual design demonstrated that the original user requirements were not providing the best possible solution. As a result, payback was reduced from four to 1.8 years.

Even if the result of the conceptual design stage is negative – for example, if the decision was made not to proceed with any options – it still produces an important piece of knowledge and protects the business from making the wrong decision, for a minor cost compared to the overall cost of the project. The resulting documentation will also be valuable in the future if business conditions change.

Alex Berdyshevski is the Owner and Principal Engineer at Manufacturing And Design Solutions www.manufacturinganddesignsolutions. com.au

BUSINESS MANAGEMENT

The appeal of the ‘flat’ organisation – why some firms are getting rid of middle managers Companies around the world are stripping away layers of management hierarchy and adopting “flat” organisational structures. Massimo Garbuio and Nidthida Lin look at the reasons for this trend.

The trend of “flat” organisations is catching on at some of the world’s biggest companies. It’s easy to see the appeal when you think of a utopia where everyone in an organisation has a say and can act autonomously.

Elon Musk, CEO and product architect of Tesla, says in the communication policy to his staff within Tesla: “Anyone at Tesla can and should email/talk to anyone else according to what they think is the fastest way to solve a problem for the benefit of the whole company.”

In a flat organisation, fewer management layers are actively involved in decisionmaking. People who have the relevant information make the relevant decisions, which reduces the hierarchical overload.

You can imagine this working in small and medium-sized organisations. But for larger companies, an enormous amount of investment is required for the transformation, which often makes a flat structure often unrealistic and unimaginable.

At online retailer Zappos, CEO Tony Hsieh has pushed flat to a whole new level, adopting “holacracy” principles. These are customisable self-management practices, where roles are defined around work, authority is distributed and the organisation in regularly updated in small iterations.

To take this a step further, Gary Hamel, a well known scholar and consultant, advocated for firing all managers, as he claims they are the least efficient part of an organisation.

Why so appealing?

As organisations strive to respond quickly to new challenges and opportunities, flatter organisations shorten the chain of command, increasing communication between employees and management.

Not only that, but researchers Raaj Sah and Joseph Stieglitz argued that hierarchic style organisations produce problems like the rejection of good projects without reason.

The greater the number of organisational decision-making layers, the greater the probability that a good project will be rejected that would have otherwise had a positive impact on the company’s growth.

And it’s not just lower-level employees disheartened by the traditional hierarchic corporation. In our research, we spoke to the vice-president for corporate development of a large American company,

Massimo Garbuio

Nidthida Lin

operating in the energy sector. He told us: “I worry that I might not get a chance to see some projects… as they go through a ‘filter’ and I can’t make a choice because I don’t get to see… them all. There is a natural tendency to only show ideas that have a higher likelihood of getting funding.”

If the communication between employees and the management is not well managed, it could potentially overwhelm executives.

This point is reinforced by research that finds that in situations where there are many levels in an organisation relative to the total number of employees, information gets distorted when it passes through hierarchical levels. These structures encourage employees to bypass superiors or simply use them as messengers.

In reality, the push to become flat is much like the focus on agility. Agility is the ability to quickly reconfigure strategy, structure, processes, people and technology for the most benefit. One of the key elements is a flat organisation.

Cutting through organisational layers also improves the speed of decision-making and the time it takes to get a product to market. A study of over 300 executives from around the world, found that the greater the number of organisational layers, the slower the organisation reached customers with new products and services.

Beyond human relations in the office, flatter organisations are often cheaper to run and more dynamic. These benefits are similar to what organisations would achieve through outsourcing, where companies avoid investing in resources. By keeping the number of management layers minimal, a flat organisational structure helps cut down the overhead costs of management.

Not everyone can be flatter Organisational structures do have challenges. Individual managers can resist moving to a flat structure because they fear losing their job. Flatter structure might also lead to a lower sense of accountability as each employee has more than one boss.

Another challenge is the significant time, resources, and investment required for a large organisation to transform to a flatter structure.

According to a recent McKinsey Global Survey, two-thirds of respondents indicated that their companies have already begun agile transformations. Examples include Google, Netflix, Spotify, the Dutch banking group ING and, more recently, ANZ. Interestingly, this study shows that only 4% of all respondents say their companies have fully implemented agile transformations by creating a flat structure.

The bottom line is that different industries have different dynamics and different degrees of disruption – and so may need different organisational structures to operate efficiently.

Dr Massimo Garbuio is a Senior Lecturer in Entrepreneurship at the University of Sydney. Nidthida Lin is a Senior Lecturer at Newcastle Business School, the University of Newcastle. This article was originally published by The Conversation. www.theconversation.com www.sydney.edu.au www.newcastle.edu.au

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Analysis paralysis: How information overload could be blocking sales Customers have access to more information than ever before, and yet when it comes to deciding on solutions for their business, the more information they have, the less able they are to choose. Anthony Roberts, Managing Director of Eclipx Commercial, talks through how you can help them navigate the buying journey.

Recent research in the Harvard Business Review confirmed that, when it comes to consumers, more choice isn’t necessarily a good thing – for them or you. It seems that the more information buyers are presented with, the more questions they have – and the more difficult it becomes for them to understand and compare alternatives with any sense of confidence. The feelings of confusion continue even after settling on a product, as the consumer secondguesses themselves, worrying they haven’t made the right choice.

The internet gives us more choice and information than ever – and yet, only a tiny 2.6% of B2B buyers said they would rather buy wholly online than deal with a seller. This shows that salespeople still play an important role in customer choice and satisfaction. But it is important to note that, as a seller, the later you engage in the sales process, the harder it becomes to differentiate yourself – due in part to the amount of information and choice the customer has already received by that point.

And there is another challenge. Not only are potential buyers reeling from information overload, but the decision to purchase is taking longer. In fact, it will typically take twice as long as buyers expect, with 65% of customers reporting they spent as long just getting ready to speak to the sales representative as they’d initially expected the entire process to take. To add to confusion, more and more people are involved in the process. The same research tells us that the average of 5.4 people two years ago has risen to 6.8, often in different roles and functions, making it very difficult to reach a consensus.

Why the “responsive” framework may no longer work Most sellers believe that if they focus on a customer-centric approach they will be successful. They think they must take direction from their potential buyer (even if they don’t agree), adjust their offering as buyers’ demands evolve, and satisfy every request for information. The truth, however, is that this approach actually decreases purchase ease, by 18%. In fact, the socalled ‘responsive’ sales approach has a counterintuitive effect: decreasing the ease with which buyers choose and increasing the likelihood of purchase regret.

It feels like it flies in the face of traditional sales techniques, but the reality is that – in a world where there is endless information at a customer’s fingertips – a proactive, prescriptive approach actually increases purchase ease, by up to 86%.

What does this mean for manufacturers?

Your best recourse is giving potential buyers a clear recommendation, backed by a specific rationale. This helps buyers answer questions from their business, and strengthens their perception of you as a supplier that understands their needs and is one step ahead. For example, by offering equipment financing – tailored to your buyer’s industry, equipment and cashflow requirements – you can help them overcome budget restrictions, balance sheet and cashflow concerns, while also giving them a best-in-market option.

It works. According to research we commissioned at Eclipx Commercial, over 90% of small and medium businesses experienced higher sales when they offered equipment finance for their products; 75.5% closed larger deals; and – most importantly – 80% forecasted

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Anthony Roberts

higher growth than companies that don’t offer financing. A financed sale is also typically more profitable than other sales and helps reduce the cash conversion cycle by up to 59 days – and a shorter cash conversion cycle means a stronger bottom line.

So, with or without financing, how do you take a prescriptive approach to sales? Harvard Business Review identified four clear steps: 1. Map the journey your potential buyer will take, from recognising that new equipment is needed, through to choosing a specific model. Use as many sources as possible to track these steps, including asking buyers and your own sales reps for their insights.

2. Identify the major barriers your customers face. One of these is likely to be availability of finance, so offering a flexible and competitive solution at an early stage will be a strong advantage.

3. Design a prescriptive solution, one that is unbiased and credible, not promotional. Your solution should be aimed at reducing indecision, and compelling action along a path that leads to you and your products.

4. Track customer progress. This means having resources committed to tracking your potential customers’ actions and progress.

In a world of information overload, anything a manufacturer can do to make potential buyers feel informed and confident about the act of choosing will provide a competitive advantage. This mean taking a prescriptive approach, rather than a vague or passive approach to buyers’ challenges. Offering asset finance is one way to provide a clearer, easier journey to choice. www.eclipxcommercial.com.au

BUSINESS MANAGEMENT

Manufacturers need to offer high-quality support as well as high-quality products Effective aftermarket support is an opportunity. If done poorly, it could lead to unnecessary downtime - for example, through slow delivery of replacement parts – which will cost both the vendor and the customer. Loyalty, money and reputation are all at stake. By Wayne Drysdale, Global After Sales Manager at ANCA It’s been argued that manufacturing companies are becoming more and more like service companies, and any line between the two is getting harder to draw. There have been many articles recommending that manufacturing companies invest in a highperforming customer service team to better meet their customers’ needs that previously may have been neglected.

In many ways I could say I am now tasked with much of the responsibility of selling our machines, a role that traditionally sat with sales and marketing. I say this because the most effective way to build customer loyalty is by providing excellent aftermarket support – by being agile and responding quickly to customer requests. We recently interviewed our customers and after sales support was by far the number one priority.

Technology is transforming how a traditional customer service team operates, with remote diagnostics and preventative maintenance quickly becoming the norm. This technology shift has made the importance of a quality service team paramount to its customers’ success, ensuring they can minimise machine downtime and maximise production efficiencies.

An obvious place to focus on is in after-sales service, for example in providing effective troubleshooting advice, education and training on how to get the most out of a purchase, or in finding better ways to provide replacement parts if there is an issue. Service offerings within manufacturing companies can increase revenues, provide differentiation from competitors, and increase the loyalty customers feel.

As a group of experts pointed out in Harvard Business Review in 2006 that: “Providing support generates a low-risk revenue stream over a long period of time. Aircraft manufacturers, for instance, can reap additional revenues for as long as 25 years after a sale. The longer the life of the asset, the more opportunities companies will find down the line.”

Seizing the opportunities Machine tool buyers are increasingly expecting things like aroundthe-clock, unmanned operation and remote diagnostics. A machine breakdown is a critical issue, and around-the-clock responses to such an issue are expected.

As technology is enabling better use of an asset, it’s also enabling better service when there are issues. For ANCA, this means offering remote diagnostics and responding to error codes. Remotely logging on to a customer’s machine to explore issues is also possible. But we need to continue to offer our customers face-toface support as well – to upskill our customers so they get the best use out of their investment.

Customer service also means responding swiftly to issues. For ANCA, with an installed base of over 6,000 machines worldwide, some over 20 years old, it involves lifetime support, regardless of timezone or remoteness. A network of over 60 service technicians, and branches in USA, Europe, and China are part of this; all work in service of a simple goal: being number one in lifetime customer experience.

For all manufacturing companies, the future brings challenges, but many exciting possibilities. This includes Internet of Things concepts for customer support, and providing better information to customers

on how their assets are being used through sophisticated analytics.

The increasing importance of services is likely to continue, and technology will provide new and better ways of solving customers’ problems.

Five tips on how to deliver great customer service 1. Be responsive: It’s important to respond quickly to all enquiries, even if it’s to say you are looking into the issue and will get back to the customer. There is nothing worse than non-responsiveness to a customer seeking help. Customer support response times can dictate how a client perceives your company and can affect the overall customer experience.

Keeping your customers informed in a timely manner by answering phone calls and responding to emails within a reasonable time-frame are essential to great customer service.

2. Ask for feedback: You may be surprised what you learn about your customers’ needs when you ask what they think of your business, products, and services. Excellent customer service often comes down to consistently checking in with your customers and making sure they are happy with your products and services. If you do that successfully, you are on your way to becoming known for excellent service. Just remember to use the feedback you receive to make improvements where needed.

3. Commit to continuous improvement: Ask yourself at the end of the day, “What is the one thing you are going to do tomorrow to make your business better?”

4. Invest in great people: The quality of your customer service will never exceed the quality of the people providing it. If you plan to outperform the competition, plan on investing heavily in a team that can deliver and treat employees well. There is a distinct correlation between the quality of after-sales service and customer intent to repurchase.

5. Be a good listener: Take the time to identify customer needs by asking questions and concentrating on what the customer is really saying. Our customers are the reason we are still in business and our job is to serve our customers to the best of our ability. Good customer service starts with a genuine desire to delight your customers. www.anca.com

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MATERIAL REMOVAL

Okuma’s DCMC range – A proven winner The Okuma Double Column Machining Centre (DCMC) range of CNC machines has without doubt earned the tag of ‘benchmark’, underpinned by a long-time cultural ethic at Okuma for continuous improvement. Since 1966, Okuma DCMCs have been outclassing rival machines around the world, achieving phenomenal success in the field with thousands of DCMCs in operation today that bear the Okuma name.

In October 1981, the first Okuma DCMC for the Australian and New Zealand markets was completed and installed. That first machine, an MCV-A model delivered to a customer in Christchurch, New Zealand 37 years ago, is still in active use to this day.

Okuma DCMCs are defined by their basic construction. Often referred to as bridge construction, Okuma prefers the DCMC description. The machines have fixed columns either side of a table that moves underneath an elevating cross rail (W Axis). The table is connected to the two columns, along which the Y-axis/ main-spindle headstock travels. This is actually similar to the MB-V/ Genos M Vertical Machining Centre (VMC) range, another marketleading product line for Okuma.

The key for the DCMC is its five-face machining ability using a choice of angular, extended or high-speed attachments. For example, an NC B and C-axis tilting, rotating head attachment along with three other chosen vertical or angular attachments can be stored, all of which are automatically exchanged using an automatic attachment changer (AAC) by program command. All can accept cutting tool holders that are also automatically exchanged with an automatic tool changer (ATC), irrespective of the attachment selected. It’s not uncommon to add a fourth-axis CNC rotary table arrangement and even two pallets.

Okuma’s DCMCs are, by design and quality, machines that stand the test of time in longevity and that remains critical when analytical investigations into specifications, prices and delivery are a key focus. According to Okuma, there are four key factors that always surface in discussions about the DCMC with potential customers: high levels of accuracy; reliability; usability; and ongoing support, not just from the local distributor, but from the manufacturer.

Accuracy Okuma has now been producing DCMCs since 1966, when the MDB model was released. In a classic case of “if it ain’t broke, don’t fix it” the Double Column concept has stood the test of time, with real improvements coming from modernised casting techniques, more efficient machining of components, materials used, and – perhaps above all else – ever-improving electrical and electronic components and software developments.The slideways of a DCMC cannot just be machined. They must be ground. Massive investment is made in Waldrich Coburg grinders that can and must be able to grind the full length of the individual large components, such as slideways, columns and beds, to within single-digit microns for flatness and straightness. These are the parts that guide the moving table, cross rail and the headstock, and upon which the whole aspect of squareness and overall accuracy depends.

As for the vertical axes, there are two. The elevating cross-rail W-axis can be continuously CNC-controlled or preset with high accuracy at any one of ten positions. Attached to the elevating rail is the Y axis saddle, to which the second vertical movement axis, the Z-axis is attached. It is of square ram-type construction and supported by proper slideways for superior rigidity.

Okuma’s unique combination slide/roller guideway system on all main axes allows spritely axis feeds without significant thermal change. The thermal stability of the whole machine itself is controlled these days by Okuma’s Thermo Friendly Technology, which in simple terms is a negative of the thermal map developed under machining conditions of every machine individually. This

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Okuma DCMCs are defined by their basic construction, often referred to as a bridge construction.

global award-winning technology has revolutionised the control of part repeatability over long machining times and integrates ambient temperature changes as well.

Every Okuma DCMC is built to order. There is no stock specification.

Every Okuma DCMC is manufactured and assembled completely as per the customer’s specification at Okuma’s factory, in the giant Kani 5 DCMC assembly hall where around 35 of the machines can be assembled simultaneously. The machine is then vigorously tested to ensure compliance with Okuma’s stringent accuracy standards, in most cases with the customer present as a witness. The machine is then disassembled for packing and shipping. Typical accuracies for an average MCR BIII 30 x 65 DCMC (with 3.0m between columns and 6.5m of table length)are as follows: • Parallelism: Better than 0.03mm – usually 0.02mm.

• Straightness: Better than 0.02mm/ metre – usually 0.10mm/ metre.

• Squareness: Better than 0.03mm/500mm – usually 0.015mm/500mm.

• Bidirectional repeatability: X axis, Y axis, Z axis and W axis: All <0.010mm Despite these figures, accuracies can be a dynamic matter and are often best achieved in the set-up and levelling process at installation time, and they will vary from machine to machine.

The point is Okuma consistently produces large machines with impressive performance outcomes, upon which the company’s global benchmark status in DCMC manufacture is founded.

Reliability Okuma holds a prominent position in the market for reliability.

This stems from its longstanding internal culture of continuous improvement, enshrined in its values since 1898. A young Eichi Okuma explained to his staff 120 years ago that: “Trust is important.

To obtain trust, you must satisfy the customer.”

This was not just about selling machine tools. It was about trust: in the machine for reliability and accuracy, in the manufacturer, in the supplier, in the support chain including spares and service, in the management of the supplier.

MATERIAL REMOVAL

Where the most trust is created is in the simple fact that Okuma makes the lot – machine and control – and is the sole source for support. In addition, Okuma aims at lifetime support for parts, which in the case of DCMCs, are rarely needed. It’s a key reason why, for example, the New Zealand MCV-A has earnt its place in that shop, with the investment paid off financially many times over during its 37-year life so far. This support-based trust doesn’t come automatically. It’s evolutionary and Okuma’s 120 years of experience is crucial to how reliably and effectively any glitch will be corrected.

The DCMC build program by Okuma has been active for more than 50 years and the documented experiences inside Okuma provides a massive platform for experienced troubleshooting.

Usability The same Okuma OSP controller, language and architecture that is used on Okuma’s MB-V vertical machining centre (VMC) for small tool rooms is used on the massive MCR-C 35 x 120 DCMC. All DCMCs offer straight ISO or Okuma’s own conversational formats.

So there is a consistency of operation criteria that will allow an operator to confidently switch between large and small Okuma machines.

These days, however, there are several more application-based options that are designed to provide more user-driven outcomes.

Machining Navi will seek the optimum machining conditions of speed and feed rate, while Servo Navi AI offers intuitive acceleration and deceleration variability against the mass of the part. In addition there are all manner of gauging options, laser surface hardening and metal deposition, machine condition analytical monitoring, Super NURBS, physical dimension compensations, Servo Vibration Auto Adjustment, Collision Avoidance Systems, power-conscious ECO options for idling stop and monitoring, not to mention Inductosyn scale feedback, NC-W and NC Rotary table axes, and a wide array of attachment heads.

For an investment that is generally large, there needs to be a comprehensive set of features that assist the perfect outcome of what can often be a one-off job that simply has to be right first time.

The key for the DCMC is its five-face machining ability, using a choice of angular, extended or high-speed attachments.

Support Of the 40-plus DCMCs that have been installed in Australia over the years, some are old. The average age of the machines in the Australian market is 21 years. Every single one is operating today.

Owners can look forward to remarkable reliability in a sturdy machine with a second-to-none support program that involves local applications, and mechanical service and electrical service employees who are well experienced on all models because all Okuma DCMCs follow a generally common design criteria. In addition, for every DCMC installation, Okuma factory engineers will attend to take charge of the complete assembly and commissioning process.

Okuma Double Column Machining Centres are a major part of the Okuma machine range that includes vertical and horizontalspindle CNC lathes, vertical and horizontal-spindle machining centres, multifunction turning centres and five-axis machining centres, cylindrical and internal grinding machines, robotic handling equipment, and the full scope of the OSP Control including motors, drives, encoders and software. www.okumaaustralia.com.au

Since 1966 Okuma DCMCs have been achieving phenomenal success, with thousands of machines in operation today.

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Shamic Sheetmetal continues to innovate with solid support from Headland Shamic Sheetmetal (Aust) Pty Ltd was established in 1978 as a fully Australian-owned and managed family business, manufacturing sheet metal products.

Under the direction of Managing Director Eric Woodgate, Shamic rapidly gained the excellent reputation it has today for providing high-quality sheet metal units and parts for a wide range of customers – from small producers to large multinational companies including motor vehicles, electrical and electronic products and industrial components and parts.

In 1985, the sheet metal specialists began manufacturing wood heaters, acquiring the rights to an array of well-known heater brands between 1998 and 2001, with gas heaters added to their impressive portfolio in 2001. Having grown extensively over the years, in 1998 Shamic moved to a larger manufacturing and warehousing facility in Croydon, Victoria.

Today, Shamic manufactures and sells the full range of HeatCharm, Arrow and Coonara wood and gas heaters across Australia through a huge network of more than 150 distributors. With strong relationships with distributors across the country, Shamic prides itself on staying true to Australian suppliers and the industry, employing expert staff to support the local market.

Shamic provides a vast service offering for its customers, manufacturing sheet metal products as well as heating products, which gives them a competitive advantage. Luke Crosthwaite, General Manager, explains that building quality partnerships with customers is a further factor to Shamic’s success.

“We ensure that we take the time to understand the needs of each individual customer and cater for those needs,” says Crosthwaite. “When we secure a customer, we keep them for life.”

Crosthwaite adds that the company also places high importance on using new technology to ensure that their processes are as efficient as possible.

“We keep up to date with new technology and new machinery that can help us deliver the highest quality products to our customers in the most efficient way,” he explains. “Automation is crucial for us – our employees run a single shift but lights-out manufacturing means our machines run multiple shifts. Using the latest technology keeps us competitive; our machines are quicker and faster.”

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The team at Shamic Sheetmetal.

With four Trumpf machines already in its workshop, Shamic purchased the Trumpf 3030 fibre laser because it knew the reliability and quality of cut that the machinery provides. The sheet metal specialists wanted to update the latest technology to improve business efficiency, speed and output. Shamic moved from a CO2 laser to a fiber laser, favouring the newer technology.

“We have a variety of Trumpf machinery in our warehouse, including four press brakes,” says Crosthwaite. “Our warehouse is fully automated and we rarely have issues with any of our Trumpf machinery, which is down to the fact that they’re German-made and therefore the highest quality possible.”

Crosthwaite also acknowledged the support of Headland Machinery in supplying the new machine: “Headland has taken the time to get to know us and our business.

We have machinery in our warehouse manufactured by other companies who don’t give anywhere near the level of support that Headland do. The technicians are knowledgeable, trained well, and clearly understand the machinery inside out – and the service team are responsive.

“We have a longstanding relationship with Headland and it’s incredibly important to

us. Their sales team know our business well, making the process quick and easy for us. If we’re looking to invest in new machinery, Headland is the top of our list.”

Crosthwaite believes that conditions across the industry in general are steady.

While the demise of the automotive industry hasn’t affected the sheet metal manufacturers, it means that smaller players have disappeared, leaving only the bigger companies who have invested in technology.

With competition increasing with overseas markets, the team at Shamic are finding themselves competing with China on their products – with many customers returning to Aussie manufacturers due to further issues they’re experiencing with overseas manufacturers.

“Import issues and lack of response mean that customers are more interested in Aussie businesses,” says Crosthwaite.

“Expectations are high, so pressure on manufacturers is significant. We have to be responsive to local requirements, and in doing so, we rely heavily on our machinery, so investment in technology really is key if you want to remain competitive nowadays.” www.headland.com.au www.shamic.com Shamic Sheetmetal’s workshop in Croydon, Victoria.

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First Advanced Welder Training Centre to open in Burnie The first Advanced Welder Training Centre (AWTC) is set to open in Burnie, Tasmania, with Federal Minister for Education and Training, Simon Birmingham pledging $750,000 worth of funding.

The first AWTC will be established at the Tasmanian Minerals and Energy Council (TMEC) Centre of Excellence in South Burnie. The newly refurbished centre will feature an advanced augmented reality lab equipped with five Soldamatic welding simulators, as well as advanced technical training to help upskill TasTAFE trainers.

The training delivered at the AWCT will quickly qualify welders to the standard required by ISO 9606-1 Qualification testing of welders – Fusion welding. ISO 9606 is the only standard in the world that is accepted in both Europe and America. It is a simple test that assesses welding competency according to a specific weld procedure, based on a practical acceptance criteria.

According to Geoff Crittenden, Chief Executive Officer of Weld Australia: “The combination of a curriculum based on global best practice delivered via advanced training technology will help ensure a strong supply of capable welders, both now and well into the future.

“Without a doubt, the successful implementation of this innovative training initiative will revolutionise welder training in Australia. It will raise the standard of welder education in Australia exponentially, putting our welder training on par with the best in Europe and America.”

Weld Australia convened an Industry Skills Group in mid-2017 to prepare a training curriculum tailored for both experienced welders and transitional workers. The courses were accredited by the Victorian Registration and Qualifications Authority (VRQA) in late 2017.

As a result, TAFEs around the country can now teach the accredited course, with funding provided by their parent state government.

Weld Australia will work in close collaboration with TMEC to ensure the success of the project, and anticipate that the AWTC will open in September. It is anticipated that an additional five AWTCs will receive funding for establishment in 2018, with similar numbers expected in the next two years. www.wtia.com.au

Bystronic acquires majority interest in automation specialist Antil In order to serve growing customer demands in the field of automation, Bystronic is acquiring 70% of the shares of Antil, the Italian specialist in automated sheet metal processing.

By taking a majority shareholding in Antil, Bystronic aims to be able to expand its existing range of technologies and services in the field of automation. With Antil, Bystronic can now offer complementary solutions for the loading and unloading of cutting systems, corresponding storage systems, and services.

Antil is a highly innovative technology company with headquarters in San Giuliano Milanese in the Italian province of Milan, with approximately 110 employees. Since 1989, the company has specialised in the development of automation solutions for the sheet metal processing industry. Its portfolio includes loading and unloading systems for laser cutting and punching machines, automated sheet metal storage systems, robot-assisted bending solutions, and customer services. Antil’s technologies and services are systematically oriented toward the requirements of its sheet metal processing customers. In 2017, the company achieved a turnover of approximately €18m.

Antil will now become an integral part of the Bystronic Group as a “Member of Bystronic”. Under this framework, the Antil brand will be maintained. The responsibility for the executive management of Antil will remain with the previous co-owner of the company Agostino Zanella. The company headquarters in San Giuliano Milanese (Italy) and the employees there will also be retained under Bystronic’s majority shareholding.

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“Antil and Bystronic complement each other ideally, not only technologically but also culturally,” explains Bystronic CEO Alex Waser. “Innovations and a clear focus on customer requirements are important core components of both companies. This in turn benefits our customers. In future, they will have access to a broad range of technologies for automated sheet metal processing.

Together, Antil and Bystronic will support customer requirements with an outstanding sales and service organization covering all aspects of automation.” www.bystronic.com

FORMING & FABRICATION

ART receives federal grant for cuttingedge precision robotic system Advanced Robotic Technology (ART) has been named as a successful recipient of grant funding under the Accelerating Commercialisation element of the Federal Government’s Entrepreneurs’ Programme.

Based in Lytton, Queensland, ART has developed Metaltek XB1200, an advanced robotic structural steel processing system that has the potential to help Australian firms better compete with cheap imported fabricators through lower costs, quicker turnaround and superior accuracy. David White, Director of ART, said the grant funding would enable the company to transition from research & development (R&D) to a production product.

“This grant will help us cover the costs of building and installing a prototype system here at our Brisbane facility,” White said. “It will also help us complete and transport a display model they we can use for realworld demonstrations in Australia and overseas. This will help us generate leads David White, Director of Advanced with companies that are Robotic Technology (ART), with Prime Minister Malcolm Turnbull and Ross crying out for this kind of Vasta, Federal Member for Bonner. product, because we’ll be able to actively demonstrate the efficiency of this system in an industry neutral environment.”

To mark the awarding of the grant, ART was visited by Senator Michaelia Cash, Federal Minister for Jobs and Innovation, and Ross Vasta, the Federal Member for Bonner. Vasta said it was great to see a local company receiving government support to develop and build world-class technology: “This is a world-leading product that will boost productivity and allow workers to move up to higherskilled jobs.”

Minister Cash said she was pleased to be visiting ART to see how the Government’s funding will assist them to take their ideas to the market: “The Entrepreneurs’ Programme supports businesses to develop and commercialise ideas that will improve business capability and competitiveness, promote economic growth and create jobs.”

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After the visit White was also invited along to meet Prime Minister Malcolm Turnbull at Carindale Hotel in Brisbane. White noted that the Government’s support had been invaluable for ART to develop the technology, both through the Entrepreneurs’ Programme and the R&D Tax Incentive.

“Without the R&D Tax Incentive Scheme, it would not have been viable for us to invest the necessary funds that have been required to develop this level of technology. It’s been pivotal to help us recoup costs, which has in turn encouraged further development,” White said. “The assistance available through schemes like the Entrepreneurs’ Programme and the R&D Tax Incentive provides a high level of confidence that the Government is backing Australian innovation.” www.advancedrobotic.com

T: +61 (03) 9771 6121 E: sales@dimac.com.au www.dimac.com.au AMT AUG/SEP 2018

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AWRE 2018 to be held at vital time for waste and recycling in Australia Registrations are now open for the eagerly-anticipated Australasian Waste & Recycling Expo (AWRE), to be held on 2930 August in Sydney, NSW. AWRE is Australia’s leading event showcasing the latest developments in waste, recycling and resource recovery.

Visitors to the show can find cost-effective solutions and stay-up-to-date with the industry trends and policies. Now in its ninth year, AWRE connects all corners of the industry, including waste management professionals, commercial enterprises, industry associations and representatives from all levels of government.

Close to 2,000 waste management professionals, business leaders and government representatives are expected to attend the two-day event, which takes place at a vital time for Australia’s waste and recycling industry.

“With new regulations and China’s import ban turning Australia’s waste and recycling industry on its head, AWRE couldn’t come at a better time for industry professionals looking to improve their waste disposal and resource recovery,” says Andrew Lawson, AWRE event manager. “With current market challenges as they are, AWRE 2018 is set to be Australia’s most important waste management expo ever.”

AWRE connects industry professionals, service providers, product manufacturers and industry associations across the different waste streams, offering unique collaboration opportunities throughout the entire waste and recycling supply chain.

The two-day event facilitates business opportunities for a more profitable and sustainable waste and recycling industry.

This year AWRE has brought together an impressive line-up of partners who will be able to bring invaluable industry know-how and expertise, and who will be sharing their insights and best practices at the event.

These include: • The Waste Contractors & Recyclers Association of NSW (WCRA).

• The Australian Packaging Covenant Organisation (APCO).

• Global GreenTag. • Good Environmental Choice Australia (GECA).

• Australia and New Zealand Recycling Platform (ANZRP).

• Inside Waste.

• MRA Consulting Group.

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AWRE 2018 attendees can expect to discover an exciting showcase of innovative products, sustainable solutions and cutting-edge technology to collect, process and recycle waste across machinery and equipment, software and services, bins, vehicles, food and organics, and more.

Applied Machinery, Avian Machinery, Hitachi Construction Machinery, Method Recyling, Isuzu, Caterpillar, Sea Electric and Simpro are just some of the brands that will be on show on the exhibition floor at AWRE 2018.

Simpro will be demonstrating the unique gravity-driven comb-hitch system of its new Hiflow bin lift, which grips waste bins without using expensive electric actuators.

“Hiflow is a seriously high-capacity bin lift system, which can basically plug-and-play with bulk waste processing equipment such as compactors,” says Simpro’s Customer Care Manager, Braden Simmons. “This means other OEMs can focus on what they do best, while the tricky business of safely emptying bins is handled by Simpro’s trusted hydraulic lifting expertise.”

The event’s free-to-attend Speaker Series will once again bring together an array of renowned industry leaders who are setting the agenda across Australasia’s waste and recycling industry at such a pivotal time.

The UK’s leading plastics expert, Dr John Williams of Aquapak Polymers, will be answering the question ‘What is the role of Plastics in a Circular Economy?’

Other speakers will include: Tony Khoury, WCRA; Suzy Cenedese of Local Government NSW; Mike Ritchie of MRA Consulting Group; Brooke Donnelly, APCO; and Anne Prince of A Prince Consulting.

These speakers and more are set to discuss the most topical trends, developments and strategies on the Australian waste and recycling landscape.

“New technology is fast-tracking growth, efficiency and sustainability in the waste management and recycling industry, which now employs more than 50,000 people in Australia,” explains Lawson. “AWRE is all about connecting industry professionals and government leaders with the best minds and innovations to ensure we help businesses reduce production and disposal costs, and increase competitiveness whilst leaving a better world for future generations.

The Australasian Waste & Recycling Expo takes place on the 29-30 August at the ICC Sydney, Darling Harbour.

Industry professionals can find out more and register free to attend at the AWRE website. www.awre.com.au

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Balancing commercial viability with sustainability in C&D waste The population in Australia has been steadily increasing over the past few years, with international inbound migration comprising a majority of this growth. Population growth has a direct impact on infrastructural development, which in turn results in increased accumulation of construction waste.

Construction & demolition (C&D) in Australia produces 19 million tons of waste every year, accounting for approximately 40% of the countryâ&#x20AC;&#x2122;s total waste generation. It isnâ&#x20AC;&#x2122;t surprising then that the C&D waste management industry is an upcoming one in the country, with immense scope for business growth and employment generation. Presently, there are more than 500 active businesses in the C&D waste management industry in the country, making it a strong supplier of jobs and resources to the economy.

As the name suggests, C&D waste is what gets generated from demolition activities at construction sites â&#x20AC;&#x201C; either residential or commercial. Such waste typically comprises timber, concrete, wood, metals, plastics, cardboard and mixed site debris such as soil and rocks. Since C&D waste incurs heavy landfill levy costs, recycling it is a more cost-effective approach.

As a result, most C&D waste in Australia gets recycled. In most Australian states, recovery rates are at approximately 75%, and steadily increasing, making this an industry with immense potential.

Additionally, as landfill costs rise, the commercial advantage of recycling C&D waste will be higher, positively impacting recovery rates.

The C&D recycling process comprises two key stages: sorting and shredding.

In the sorting or separating stage, the accumulated C&D waste is sifted through and materials such as debris and timber are separated. Magnetic extraction is used to separate steel chunks from other waste, so they can be reused. Once separated, the waste materials go through a shredder, before being sent off for reuse. The main value in C&D waste recycling is derived in the sorting stage, with the separated metal, timber and plastics being sent off to be recycled and repurposed.

Despite the potential in the industry, challenges persist. Although C&D waste recycling is generally considered more economically viable than other waste forms, it continues to be an area that requires significant investment from companies.

Lack of organisation in the recycled materials market can complicate the process further, often making it seem like

more trouble than it is worth. The current trend in C&D waste recycling in Australia reveals that economic viability continues to be the key deciding factor between waste being disposed at landfills or being recycled, with states imposing a higher landfill disposal levy also showing higher recovery rates. Subsequently, regions with higher resource recovery rates also have strong market demand for recycled C&D materials, with well-defined specifications supporting the use of recycled products.

Applied Machinery supplies a range of Genox equipment that can be used for sorting and size reduction. Customers can ensure they get the maximum value out of their waste by cleaning it out first. Applied Machinery is one of Australia largest suppliers of recycling equipment, and has the expertise to offer a quick assembly of waste recycling lines that are made to order and suitable for any business needs.

Applied Machinery will be exibiting at Stand C14 at the Australasian Waste & Recycling Expo (AWRE) in Sydney on 29-30 August. www.appliedmachinery.com.au

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World-first waste microfactory launched at UNSW The world’s first microfactory that can transform the components from electronic waste (e-waste) items such as discarded smart phones and laptops into valuable materials for reuse has been launched at the University of New South Wales (UNSW) in Sydney.

Using technology developed following extensive scientific research at UNSW’s Centre for Sustainable Materials Research and Technology (SMaRT Centre), the e-waste microfactory has the potential to reduce the rapidly growing problem of vast amounts of electronic waste causing environmental harm and going into landfill.

According to SMaRT Centre Director, Professor Veena Sahajwalla, the e-waste microfactory will be the first of a series of microfactories under development and in testing at UNSW that can also turn many types of consumer waste streams such as glass, plastic and timber into commercial materials and products. For instance, from e-waste, computer circuit boards can be transformed into valuable metal alloys such as copper and tin, while glass and plastic from e-devices can be converted into micromaterials used in industrial grade ceramics and plastic filaments for 3D printing.

“Our e-waste microfactory and another under development for other consumer waste types offer a cost-effective solution to one of the greatest environmental challenges of our age, while delivering new job opportunities to our cities but importantly to our rural and regional areas, too,” says Sahajwalla. “Using our green manufacturing technologies, these microfactories can transform waste where it is stockpiled and created, enabling local businesses and communities to not only tackle local waste problems but to develop a commercial opportunity from the valuable materials that are created.”

Sahajwalla believes microfactories present a solution to burning and burying waste items that contain materials that can be transformed into value-added substances and products to meet existing and new industry and consumer demands. They offer a truly sustainable solution to our growing waste problem, while offering economic benefits to local communities.

“We have proven you can transform just about anything at the micro-level and transform waste streams into value-added products,” she says. “For example, instead of looking at plastics as just a nuisance, we’ve shown scientifically that you can generate materials from that waste stream to create smart filaments for 3D printing.

“These microfactories can transform the manufacturing landscape, especially in remote locations where typically the

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NSW Minister for the Environment Gabrielle Upton and SMaRT Centre Director, Professor Veena Sahajwalla.

logistics of having waste transported or processed are prohibitively expensive. This is especially beneficial for the island markets and the remote and regional regions of the country.”

UNSW has developed the technology with support from the Australian Research Council and is now in partnership with a number of businesses and organisations including e-waste recycler TES, mining manufacturer Moly-Cop, and Dresden, which makes spectacles. During the launch of the micro-factory in April, NSW Minister for the Environment Gabrielle Upton said it was exciting to see new technological innovations that could transform waste management and recycling.

“I am very pleased to launch the UNSW e-waste microfactory, a NSW home-grown solution to the waste challenges facing communities all over the world,” said Upton. “It is exciting to see innovations such as this prototype microfactory and the potential they have to reduce waste and provide a boost to both the waste management and manufacturing industries in NSW.”

How it works UNSW’s modular micro factories can operate on a site as small as 50sqm and can be located wherever waste may be stockpiled. A microfactory is one or a series of small machines and devices that uses patented technology to perform one

or more functions in the reforming of waste products into new and usable resources.

The SMaRT Centre e-waste microfactory has a number of small modules for this process and fits into a small site. Discarded devices such as computers, mobile phones and printers are first placed into a module to break them down. The next module may involve a special robot for the identification of useful parts. Another module then involves using a small furnace, which transforms these parts into valuable materials by using a precisely controlled temperature process developed via extensive research.

The materials transformed include metal alloys and a range of micromaterials. The micromaterials can be used in industrialgrade ceramics, while the specific quality plastics from computers, printers and other discarded sources can be put through another module that produces filaments suitable for 3D-printing applications, and the metal alloys can be used as metal components for new or existing manufacturing processes.

While the SMaRT Centre is expanding its partnerships with industry, investors and local councils, the challenge is to commercialise and create incentives for industry to take up this technology – and to change behaviour – as societies and communities around the world seek to become more sustainable. smart.unsw.edu.au

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Small QLD firm hits big milestone in recycling plastics A revolutionary new method for replacing steel mesh used in concrete reinforcement with recycled plastic has seen Queensland engineering firm Fibercon recycle over 50 tons of plastic waste.

Developed in conjunction with researchers from Queensland’s James Cook University, the technology uses recycled polypropylene plastic for reinforcing concrete instead of the traditional steel, resulting in reduced carbon dioxide emissions, water usage and fossil fuels. Since its first use in 2017 the technology incorporated into Fibercon’s Emesh product has been used by councils predominantly in footpaths, but also has applications from pavement concrete to channel drains, embankment erosion control, precast sewer and stormwater pits.

According to a report prepared for the Department of Environment & Energy in 2016, Australia averages 107kg of plastic waste per person each year. Therefore, says Fibercon CEO Mark Combe, “We have effectively recycled the plastic waste for 467 Australians.”

Steel reinforcement in concrete – or rebar – was first introduced in the mid 18th century as a means of improving the tensile strength of concrete, and is now the most commonly used form of concrete. With concrete use at approximately one cubic metre per person, Australia uses 25 million cubic metres of concrete per year. At a conservative estimate, 5% is footpath and light pavements – equating to 1.25 million cubic metres.

“If we replaced all the steel mesh in these pavements with Emesh, we would reduce our carbon dioxide by 125,000 tons annually, and reuse 5,000 tons of waste plastic,” says Combes. “It’s an exciting goal for us.”

Worldwide around 1.6 billion tons of steel is produced per year, and it is heavily dependent on the use of fossil fuels and water. The process makes steel from iron ore by heating it with carbon – predominantly coal; carbon dioxide is produced as a by-product. Production of a ton of steel generates almost two tons of carbon dioxide emissions, making steelmaking one of the world’s leading industrial sources of greenhouse gases accounting for as much as 5% of total emissions.

By using the recycled plastic technology, Fibercon has also seen a reduction to date of 1,000 tons of carbon dioxide, 200 tons of fossil fuels reduction, and a 18,000 cubic metres of water reduction.

“According to the US Environmental Protection Agency calculations, the reductions we have achieved in carbon dioxide emissions, are the equivalent of taking 214 passenger cars off the road for one year,” says Combes. “Plastic fibres in concrete have been around for 20 years – what is new about our product is that it is 100% recycled. The intention is to do something to give back, to close the cycle of useless waste.”

With increasing recognition by governments at federal, state and local level of the need for sustainable building practices, Emesh is seen as a solution that can contribute to the ever-growing quest for carbon neutrality and reduced environmental impacts. www.fibercon.com.au www.emesh.com.au

Australia uses 25 million cubic metres of concrete per year, of which 5% is estimated to be used for footpaths and light pavements.

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WORKHOLDING

Revolutionising workholding As one of Australia and New Zealand’s leading supplier of accessories for CNC turning machine tools, Dimac Tooling offers a comprehensive range workholding solutions.

Dimac was recently confirmed as the distributor for Lang Technik’s cutting edge innovative products. As a result, any company that is involved with workpiece milling in Australia or New Zealand now has easy access to Lang Technik’s Makro-Grip technology, which provides a workholding solution to almost any clamping requirement from raw material to the finished workpiece.

“We are thrilled to have been appointed Lang Technik’s sole distributor in Australia,” says Dimac Managing Director, Paul Fowler. “This well-known German company is recognised as one of the leading manufacturers of workholding and machine tool automation. Every month thousands of clamping set-ups are delivered to customers all over the world to help them increase their production efficiency.”

Makro-Grip stamping technology is a patented form-closure technology which provides the highest holding power for five-face machining worldwide. The stamping technology, also called prestamping, involves the workpiece being stamped outside of the machine tool with up to 20 tons of hydraulic pressure, before being clamped in the Makro-Grip five-axis vise. Clamping scenarios that require high holding power, but where the danger of workpiece deformation exists, can be mastered with the stamping process.

For five-sided machining, where optimal accessibility has to be achieved, stamping technology in connection with the Makro-Grip five-axis vise provides the ultimate solution and the very best the market has to offer. Stamping units are available for workbenches and on a trolley, with different sizes being available.

“Makro-Grip stamping technology provides tremendous material savings due to minimal clamping edge requirements,” Fowler adds.

The compact Makro-Grip five-axis vise offers unmatched holding power and the best accessibility for five-face machining. It offers high repeat accuracy for inserting workpieces without any endstops and due to its light weight, is easy and flexible to handle.

“The Makro-Grip five-axis vise is the perfect solution for all challenging clamping tasks and which simply is unbeatable in fivesided manufacturing,” says Fowler.

Other innovative products in the Makro Grip range include the DualClamping vise – a retrofitting kit for five-axis vises that allows you to convert your existing Makro-Grip five-axis vise into a Dual-Clamping vise within just a few moments. The Makro-Grip Dual-Clamping vise is perfectly qualified for batch production.

The Makro-Grip Automation vise is a five-axis vise for automated manufacturing whilst the Makro-Grip Automation Dual Clamping vise comes with a robust and corrosion-resistant steel body. On its side faces are integrated automation interfaces for the handling gripper which can be used as an ergonomic recessed grip as well. With the retrofitting kit, the Dual Clamping vise can be converted into a fourfold automation.

The Profilo Clamping vise is a clamping system for all shaped parts allowing for the use of different types of profile jaws on one vise body. The Universal Avanti vise offers great handling characteristics and enormous set-up time savings thanks to a quick jaw exchange system. The Vario-Tec Centering vise is a convenient and versatile clamping solution for semi finished parts whilst the Ino-Grip three-jaw chuck is an automatable chuck for milling round parts.

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A unique product in the Lang Technik range is the Cleaning Fan. The fan automatically cleans the machine table, pallet and/or workpieces after the machining process is complete.

“Because all Lang Technik’s extensive products come from the one place they are perfectly matched and interfacing problems with other systems do not exist,” adds Fowler. “The modular building system and the multitude of combinations and capabilities are the reason that their workholding systems can be used in almost any machining centre.”

Precise gripping, no surface marks Dimac is also the sole distributor of Royal CNC Expanding Mandrels.

Manufactured in the USA, these finely crafted tools incorporate the highest-quality steels and seals, and are fully sealed for complete protection against coolant and chip penetration.

“ID gripping is often overlooked as a workholding option, yet in many situations it is the best choice,” notes Fowler. “The workholding challenge, especially on short parts, is to have sufficient surface area to securely hold the part, have an area that will not be damaged by gripping the ID and still allow for maximum access for the cutting tool.

“It is becoming increasingly important for surface finishes, especially in medical applications to have no marks or blemishes. Gripping on the ID of a bore rather than the OD can help keep the outside cosmetics of a workpiece more acceptable for these types of applications.”

The ability to choose ID clamping offers several advantages over simply using traditional OD gripping with a chuck or collet. By having the ability to clamp on the centre bore it allows for full access to

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carrier and receiver, it provides a solution that is accurate, fast to convert between workholding methods, and importantly very affordable. You can now change over between power jaw chucks, collet chucks, expanding mandrel chucks or your face-driver quickly and easily. the entire length of the workpiece so all external surfaces can be turned in a single operation guaranteeing perfect concentricity. On subspindle machines, ID gripping on the second spindle eliminates the risk of surface damage that can be caused by second-op OD gripping on a previously turned diameter. For many parts, the engagement length of the ID bore can be greater than what is available for OD gripping, resulting in superior rigidity and torque transmission.

ID systems tend to be more streamlined than OD systems, enabling better part access – especially important for use on machines with live tooling. And finally, having full access to the entire outside length can aid production shops trying to balance cycle times between operations performed on the main spindle and the subspindle.

Royal’s exclusive ‘Bolt & Go’ mounting feature is standard on all Royal ID Gripping systems and enables quick mounting and ensures maximum accuracy and rigidity. The unique double-angle design ensures positive release when the part is unclamped – especially important for automated loading/unloading.

In addition to the off-the-shelf standard line, specials are available in custom configurations ranging up to 610mm diameter. Manufactured to exacting tolerances, Royal Expanding Mandrels are guaranteed accurate to +/- 0.0012mm TIR or better. The Royal CNC Expanding Mandrels system includes all mounting hardware, wrenches and a custom-machined drawtube connector to ensure hassle-free installation.

Speedgrip – Getting to grips with changeover time One of the traditional issues facing operators of CNC lathes dealing with smaller batch sizes is that of changeover time of workholding devices. The time involved with disassembly, cleaning, checking and reassembly all adds to significant time delay and subsequent loss in productivity.

As an example, changing from a power jaw chuck to a collet chuck can be achieved in less than five minutes – an operation that would have taken around an hour using the conventional method. Installation is simplicity itself: mount the Camlock adapter/receiver to the spindle and then connect the retainer/connector assembly to the drawtube.

A Camlock adaptor carrier is then fitted to the required jaw chuck, ID collet chuck, OD collet chuck, or face-driver with its retention knob and you are then ready to go. To change over, you simply release the cam studs, move the drawtube forward, remove one chuck, clean, slide on the other, tighten the studs, retract the drawtube, and in five minutes you have a completely different workholding system.

“Anything that can assist CNC operators boost their productivity is welcome news,” says Fowler. “The great thing about the Speedgrip Quick Change Adaptor is that it massively speeds up change over time, but at the same time remains affordable to all types of manufacturers both big and small.”

Dimac is the sole distributor for Speedgrip in Australia and New Zealand. The US Speedgrip Chuck Company was founded in 1946, and all Speedgrip products are produced in its 4,000sqm manufacturing facilities in Elkhart, Indiana. The company delivers premier engineered workholding solutions and its products are renowned for delivering the highest levels of quality and productivity for customers in every industry, where metal cutting is a part of the manufacturing process.

“We are proud to be Speedgrip’s sole distributor, and I know that the Quick Change Adaptor is going find a ready market with a wide range of manufacturers looking to boost both their productivity and workplace efficiency,” said Fowler. “Like all the products we sell, the Speedgrip range will have the full back up and support of Dimac technical personnel to ensure the products are installed correctly and operate at optimum performance.” www.dimac.com.au

The need for shorter part runs and just-in-time manufacturing has exacerbated the need for versatile and quick changeover workholding systems with minimal downtime. There are a number of systems currently in the marketplace that offer quick-change adaptors and chucks, but the monetary investment required is, in most cases, prohibitive. There are also marked differences in the amount of time actually saved.

This is where Speedgrip’s Quick Change Adaptor comes into play.

Using the industry tried-and-trusted Camlock technology with a

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FORUM FINANCE

Can your business afford to grow?

Ian Cattanach provides advice on reviewing your business structure in preparation for company growth or any other planned changes.

Infrastructure took centre stage in the May 18 federal budget announcement with over $70bn to be invested over 10 years across Australia, further to the $13.7bn announced in the Victorian state budget to support a growing economy. This is welcomed by the manufacturing industry as the demand for products, skills and capability is likely to flow directly through to its sectors. With high demand and an estimated 75,000 jobs to be created in Victoria alone, it may be a good time to review your business structure and ensure it has the capacity to scale and manage growth.

Here are five structures you should review: 1. Entity structure - What’s best?

The challenge with entity structures is that they really need to be customised to the business. This may involve choosing either a company or trust structure or combination of both. It may make sense to put company-owned assets into a trust for protection and capital gains tax benefits. Sometimes it makes sense for a trust to own a company. It is a good idea to get this right from the start. If you have the wrong structure, it is possible to change into one that will optimise growth potential but it will incur costs.

2. Organisational structure – Defining roles In the startup phase, many business owners don’t differentiate between being the owner and manager, but rather consider themselves as the business owner that manages the running of the business. When you define yourself with just one role, all management tasks sit underneath that role. That makes it difficult to create structure because you can’t easily divide the duties and create separate roles.As your company grows, you can continue to be the business owner but employ someone to take over the management aspect of your business. Once you have segregated your responsibilities into two distinct sections, it’s easier to hand one over to someone else. The right organisational structure also has a significant impact on culture for attracting and keeping skilled employees.

3. Assets and funding structure – Protect yourself and manage cash flow As the old saying goes, “you have to spend money to make money”. A growing business may need more space, staff and equipment. If you have to buy more land to build a factory, a trust could own the property and lease it to the company. If anything happens to the company, the property is still owned by the trust and can’t be touched to fund company debts.

If you have a reasonable super fund, you may be able to purchase new premises through the personal super fund and lease it to the company.

Possibly the biggest challenge is how to manage cash flow when you are trying to grow. A growth plan with milestones can help build the business incrementally, aligning costs with stages of growth to make sure you don’t over-capitalise.

If you think applying for grants or making a claim for R&D is in the too-hard basket, you could be missing out on muchneeded funds that could get you through a growth phase.

Many startups rely heavily on the R&D rebate to keep going.

If you are developing new technology, designs and processes to improve products and services you may qualify and open up a new revenue stream.

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4. Reporting structure – know what’s happening Financial reports are mandatory for all businesses. Banks, investors and regulators use these reports to approve loans, lines of credits and to make sure you are following GAAP (Generally Accepted Accounting Principles).

With Management Reporting you will be able to dive deeper by focusing on segments of the business to analyse the drivers of your business. An example would be analysing how the marketing department is performing for a certain time period or how much profit one sales employee had in a certain month. If you don’t receive management reporting each month you could be missing out on information that can help your company grow or prevent you from implementing costly programs that don’t provide an ROI.

5. Exit structure – What does your next chapter look like?

With baby boomers looking at retiring in the next 5-10 years, over 50% of small businesses will be on the market. Finding a buyer can be a challenge, particularly where value is the business owner’s knowledge, relationships and/or aging equipment. Buyers will be looking for a business that has growth potential so identifying and transferring value is a process that needs to be implemented before finding a buyer and may take a number of years before it’s ready to sell.

Focusing on factors that may increase the value of a business is the first step. A formal valuation will help determine options which may be different to what you envisaged such as a merger, competitor acquisition or an Initial Public Offering.

William Buck offers AMT readers “The William Buck Hour”.

This is a free hour consultation that gives an objective analysis of the strengths and areas to be addressed within a growing business. Often this gives business owners confidence in their direction and can help identify any considerations not yet thought of for the future.

Ian Cattanach is Director, Manufacturing Specialisation Team at William Buck. William Buck is a leading network of chartered accountants and advisors with offices across Australia and New Zealand, wholly owned and operated in Australasia.

Contact the manufacturing team at William Buck at: vic. manufacturing@williambuck.com or ph: :+61 3 8823 6830 www.williambuck.com

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LAW

Australian Country of Origin food labelling standards now in force: How to comply From 1 July 2018 food businesses must comply with labelling requirements set out by the Australian Government which aim to provide consumers with greater transparency on the origin of their food. Andrew Hudson explains.

Originally introduced on 1 July 2016 as the Country of Origin Food Labelling Information Standard 2016 (Standard) the implementation of the Standard has been looming for some time, with many businesses utilising the transition period to ensure that their labelling was compliant. There are two types of country of origin labels which companies selling food in Australia must comply with: the standard mark or the country of origin statement.

Standard mark The standard mark is to be used for products that are grown, produced or made in Australia. The mark includes the kangaroo in a triangle logo, a bar chart which indicates the percentage of Australian ingredients and explanatory text which outlines whether the product is grown, produced or made in Australia and the percentage of Australian ingredients.

Country of origin statement When a standard mark cannot be used, this statement provides a clear indication of where the product is produced, grown or made.

The Australian Government’s website (www.business.gov.au) is a great resource to assist companies in understanding and implementing the new labelling requirements. The Australian Competition & Consumer Commission has also released multiple useful guides.

To label or not to label?

While most food products will need to comply with the new Standard, there are some exceptions. The guidelines advise that a label is not required for: foods not for human consumption (ie pet food); foods sold in restaurants, cafes, take-away shops or schools; foods sold at fund-raisers; foods sold in the same premises in which they have been made and packed (for example: a bakery which sells its food products exclusively at the shop-front of the facilities where the products were made and packed will not need a standard mark for their food products).

In addition, the ‘standard mark’ is optional for non-priority foods which include: seasonings; confectionery; biscuits and snack food; bottled water; soft drinks and sports drinks; tea and coffee; alcoholic beverages.

The new requirements have come in – now what?

From 1 July 2018 foods which do not meet the new Standard can continue to be sold by retailers if that stock was packaged and labelled prior to 1 July 2018. Otherwise, once the new Standard comes into effect, the penalties for non-compliance include penalties of up to $1.1m for corporations and up to $220,000 for individuals. Although there are some ‘safe harbour’ defences against liability based on demonstrating that an ‘ordinary and reasonable’ consumer would not consider the claim to be false, misleading and deceptive, it is preferable to comply with the Standard in the first instance.

Related labelling issues The Standard is not the only provision governing labelling of foods.

There are also obligations not to mislead and deceive consumers under Australian Consumer Law. Further, there are also certain labelling requirements for imported goods (including some food) under the Commerce (Trade Descriptions) Act and associated Regulation. These provisions require the inclusion of a “trade description” on imported goods prescribed in the Regulation. The term “trade description” is defined to include the following: A trade description means any description, statement, indication or suggestion, direct or indirect, as to the how or by whom the goods were made, produced, selected, packed or otherwise prepared.

The trade description must: • be in the English language and in prominent and legible characters.

• Include the name of the country where the goods were made or produced.

• Where required, include a true description of the goods (‘true description’ is not defined in the legislation so is taken to be anything that is a correct and accurate explanation of the goods).

• Unless a prepacked article, be in the form of a principal label or brand (including a mark, device, name, word, letter, numeral or symbol and a combination of 2 or more of those things) attached in a prominent position, and as permanently as practicable, to the goods – if attachment to the goods is impracticable, to the principal coverings containing the goods for wholesale or retail.

Guidance on the requirements can be found at the Department of Home Affairs website. Failure to comply with their provisions could lead to the food being seized or, since 29 June 2018, the issue of significant penalties.

Andrew Hudson is a Partner in Rigby Cooke’s Customs & Trade team, and is a trusted and highly-regarded industry adviser to businesses, industry associations, other peak bodies and Government. Andrew is a member of the board of directors of the Export Council of Australia (ECA) and the Food and Beverage Importers of Australia (FBIA), and is also a prolific media commentator. Ph: +61 3 9321 7851 Email: AHudson@rigbycooke.com.au Rigby Cooke Lawyers is a Victorian commercial law firm providing specialist legal advice, supported by in-depth industry knowledge to public and private sector clients across Australia which covers the full lifecycle of a manufacturing business. Australian manufacturers have been a backbone of Rigby Cooke for many decades and Rigby Cooke strives to consistently fulfil its market-leading reputation by providing clients with high-quality advice that is backed by an understanding of the sector, and by staying at the forefront of legislative and technological changes that could impact manufacturing businesses. www.rigbycooke.com.au

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New international health and safety Standard - ISO 45001 The much anticipated International Standard for Occupational Health & Safety (ISO 45001) was published in March 2018. Jo Kitney provides an overview of its purpose, benefits and use in Australia.

According to the International Labour Organization (ILO), 2.78m fatal accidents occur at work yearly. This means internationally almost 7,700 people die every day of work-related diseases or injuries. Additionally, there are some 374m non-fatal work-related injuries and illnesses, many resulting in extended absences. This paints a sober picture of the modern workplace – where workers can suffer serious consequences by simply “doing their job”. From an Australian perspective, incident and injury statistics from Safe Work Australia demonstrate that despite our WHS framework there is still much room for improvement.

The ISO (International Organisation for Standardisation) is the world’s largest developer of voluntary International Standards with many organisations referring to ISO Standards in their business operations and to gain certification against the relevant Standard.

The release of ISO 45001 provides organisations in Australia, and worldwide, with a contemporary framework and guidance for improving work health and safety regardless of the organisation’s size, location, nature and industry.

Whilst ISO 45001 was delayed in its release, Australia has seen a shift to using ISO 45001 and this is expected to increase as the Standard becomes established in Australia and overseas.

As a consultancy practice which designs and implements WHS/ OHS management systems for organisations, Kitney OHS has based the OHS/WHS systems we developed over the past few

years on ISO 45001 when it was in draft form and have found the standard logical and systematic to work with.

ISO 45001 can be used - whole or in part - systematically to improve OHS/WHS management, however claims to conformity are not accepted unless all requirements are incorporated into an organisation’s OHS/WHS management system - fulfilled without exclusion. The Standard does not state specific criteria for OHS/ WHS performance and is not prescriptive about the design of an OHS/WHS management system. It also does not address issues such as product safety, property damage or environmental impacts, beyond the risk to workers and other relevant interested parties.

Organisations with existing OHS/WHS management systems should consider undertaking a gap audit to determine actions to meet the new Standard. Those with management systems with the new high level structure (QMS, EMS, ISMS etc.) should find it relatively easy to implement ISO 45001.

For further information on ISO 45001 go to www.iso.org or SAI Global. Courses and online information are also available to explain the new Standard and actions to meet requirements.

Jo Kitney is the Director and Principal Consultant with Kitney Occupational Health and Safety. Kitney OHS is a Brisbane based consultancy practice specializing in due diligence, governance, strategy and resourcing, management systems, audits and risk management. www.kitney.com

About ISO ISO management system Standards provide the framework of policies, procedures, documented information and processes used by an organisation to ensure it can achieve its objectives and required Standard. ISO management system Standards all have a common framework or high level structure and are designed to be integrated with each other and into an organisation’s management system processes. Examples of ISO management system Standards include the recently released ISO 27000:2015 Information Security Management Systems (ISMS) and updated ISO 9001:2015 Quality Management Systems (QMS) and ISO 14001:2015 Environmental Management Systems (EMS). All of these have the common high level structure. ISO 45001:2018 OH&S Management Systems (Requirements with guidance for use) is the world’s first OHS international Standard published

by ISO and is designed to provide a robust and effective set of processes for meeting OHS/WHS legal and other obligations and to help prevent work-related deaths, injury and ill-health by continually improving OHS performance.

Further benefits of effective OHS/WHS management through ISO 45001 include reduced downtime and costs from workrelated incidents and injury, and commercial advantages through demonstrated standards and practices for OHS/WHS management in Australia and for organisations with business operations and interests overseas.

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ISO 45001 was developed with consideration of other related standards such as the British Standard Institute(BSI) OHSAS 18001:2007 OH&S Management Systems, which has a similar framework to Australian and New Zealand’s AS/NZ 4801:2001: OH&S Management Systems. ISO 45001 introduces a number of changes for an OHS/WHS management system in addition to those found in AS/NZ 45001 which include: • Context of the organisation and needs of interested parties.

• Risk-based approach to ensure effective, relevant management.

• Clear expectations for leadership and management.

• Focus on documented information and processes to meet requirements.

• Meeting legal and other requirements, planning and resourcing and management of change.

• Controls for outsourcing, procurement and contractor management.

• Continual improvement to meet an organisation’s everchanging context.

The Standard follows the processes for hazard and risk management and the hierarchy of control as found within Australian OHS/WHS legislation and practices.

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STRATEGY

How to bridge the industry-wide knowledge gap Who will replace the manufacturing industry’s experienced baby boomers as they prepare to retire and what will entice the younger generation to consider a manufacturing career? Technology can provide some of the answers, as Terri Hiskey explains.

Australian manufacturers have long been aware of the challenge that an ongoing skills gap presents to the industry. Finding workers with the required skills and who fit in with the company culture is a perennial challenge. As local manufacturers continue to compete with cheaper goods from overseas manufacturers, as well as increasing costs of raw materials and energy, the need to find streamlined ways of doing business has never been more important.

This challenge is set to become even sharper for businesses as the highly-experienced Baby Boomer generation gets set to retire. This generation, born in the 1940s and 1950s in the wake of the Second World War, was instrumental in the boom period of Australian manufacturing. This generation of workers was the first to embrace manufacturing concepts such as Lean manufacturing and just-intime. When they retire, they’ll take valuable skills, knowledge, and experience with them.

This will likely create an industry-wide knowledge gap for manufacturers just as the industry is set for a strong recovery.

According to the Ai Group’s Performance of Manufacturing Index, Australian manufacturing has experienced growth for the past 21 months and is the strongest it’s been since 2005.

To maintain this strong recovery, Australian manufacturers need to bridge the knowledge gap before it starts to affect operations in the form of a lack of skilled workers. There is already pressure on businesses to get fit for growth by upskilling existing employees and attracting young people with the right knowledge, disposition, and capabilities.

However, as employers often struggle to find the right candidates, even for entry-level jobs, technology can provide some of the answers. Putting the right systems in place can boost efficiencies, and organisations that use new and emerging technology can potentially attract bright young workers to consider roles in manufacturing.

Robots tend to be the most obvious example of technology that can help manufacturing companies maintain or even improve production levels even in the face of declining numbers of skilled workers. To really make the most of investments in robotics, manufacturers also need to put up-to-date IT infrastructure in place. For example, cloud-based enterprise resource planning (ERP) solutions can be crucial to coordinating robot workflows and sharing data between machines and humans across multiple digital platforms. In a recent study conducted by Epicor Software, 19% of respondents agreed that they rely on a single core business system to manage all operations. (1) The right ERP solution can become a significant competitive advantage for manufacturers. ERP systems let businesses input and manipulate data, making advanced data analytics easier to achieve and manage. Analytics are crucial because they provide visibility into the information generated by machines, robots, and artificial intelligence (AI) algorithms both within the business itself and across the supply chain.

Technology is one of the keys to bridging the imminent knowledge gap in manufacturing. However, to fully realise the benefits that new and emerging technologies require, it’s essential to have the right infrastructure at the core of the business. Automating aspects of the workforce is a reliable and effective way to build efficiencies

into operations. The benefits are even greater when data is shared, processed, and analysed effectively. Creating a new focus on data, analysis, and technology will help attract young, tech-savvy people to manufacturing.

The Epicor study found that 41% of young people want the opportunity to work with the latest innovations and 20% of businesses believe that the chance to work with robotics and AI is a big draw for young talent. Millennials in particular want to be at the cutting edge of new developments, with one third of those surveyed agreeing the chance to be at the cutting edge is attractive to them.

Using the right new technology and eliminating the less-desirable aspects of jobs in manufacturing can help position the industry more attractively to younger workers. Doing so could help overcome the skills gap presented by the exodus of older workers as they retire.

It also provides an opportunity to revitalise the industry in a new image — one that values innovation and provides opportunities for young, smart people to take a leading role in advancement.

By challenging misconceptions about manufacturing as a dirty, physically-challenging industry and positioning it as a technologyfocused, clean, rewarding one, manufacturers can inspire the new generation of workers. They can then reap the benefits of a workforce that has grown up with technology in the palm of their hand, which sets the scene for potential innovation that could rival anything the industry has seen in the past. This would help cement the industry’s recovery and drive growth into the future.

Terri Hiskey is Vice President, Product Marketing, Manufacturing, Epicor Software.

Epicor Software Corporation drives business growth by providing flexible, industry-specific software designed to fit the precise needs of our manufacturing, distribution, retail, and service industry customers. More than 45 years of experience with our customers’ unique business processes and operational requirements are built into every solution in the cloud or on premises. With this deep understanding of your industry, Epicor solutions dramatically improve performance and profitability while easing complexity so you can focus on growth. www.epicor.com Ph: 02 9252 2266 (1) The research was conducted by Morar Consulting on behalf of Epicor in December 2017. The research questioned 2,450 business decision makers and employees in businesses in 14 countries across the globe, about their growth performance in the last 12 months.

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AMTIL welcomes another Corporate Partner I am very pleased to advise that we recently signed up another Corporate Partner, taking to three the number of companies that have recognised AMTIL and the industry we represent to be of core strategic focus.

Association Insurance Australia (AIA) is an insurance advisory firm that has more than 20 years insurance and risk management experience. AIA has a comprehensive understanding of our industry and will be able to assist members with the effective insurance solutions and risk management advice that are needed for them to protect themselves and their businesses.

AIA is a Corporate Authorised Representative of Insurance Advisernet, founded in 1996. This relationship provides AIA access to 160 Authorised Insurance Advice Practices in Australia and New Zealand.

AIA’s focus is to work with AMTIL to better understand the industry risk profile and AMTIL members’ needs. AIA has extensive experience in understanding, developing and implementing market leading individual, group, partnership, franchise and corporate policies for its customers. Like with all of our Corporate Partners, AMTIL places a high degree of emphasis on understanding the industry and we are confident that, with our work to date, AIA will be a great partner and provide terrific service to our members.

AIA has the experience and support of the insurance market to provide AMTIL members with a comprehensive product suite that is designed to cover their potential exposures, livelihood and brand reputation. If something goes wrong, you can be assured that AIA will work to minimise any disruption to your business or reputation.

I am especially pleased with this partnership because I know we have not rushed into it. There has been a lengthy process of discussion to ensure that it tackles a pain point for the industry and one that AMTIL, on behalf of our members, can address. This due diligence will hopefully lead to a long-term partnership between AIA, AMTIL and our members.

If you have any questions regarding this new partnership, please contact the AIA team on 1800 277 624 or email info@associationia.com.au. AMTIL’s other Corporate Partners are William Buck and AGL Energy. Anybody interested in talking to us about our Corporate Partner Program can contact Anne Samuelsson on 03 9800 3666 or asamuelsson@amtil.com.au.

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AMTIL HEADING INSIDE

Getting AMTIL members’ insights As our Member Liaison, Alan Taylor is one member of the AMTIL staff that most of our members will have spoken to on at least one occasion. Here he gives his take on the state of Australian manufacturing based on the feedback he’s been getting from AMTIL members.

For those unfamiliar with my role within AMTIL, the core part of my duties is to contact each member of AMTIL several times a year in telephone campaigns, in which I ask various questions and gauge how AMTIL can assist each member. During the course of these calls, I ask how things are going for each member and what we as an association might be able to help them with.

In the last few months of each year I contact members to gather information of the size of their business in terms of employees and turnover, how much of their own IP the businesses hold, and what that generates in terms of turnover. Exports in terms of a percentage of turnovers are also something we’ll discuss.

In the latest telephone campaign, there was something interesting that came out of the notes I made during each call that was very different from previous years at AMTIL. At the end of 2017, 66% of the members I spoke to said that they were doing very well. Only 10% of the members I spoke to were struggling with the business.

By the middle of 2018, 72.5% of members were at near capacity and feeling the pressure of heightened customer demand, with just 6.5% of members finding the climate still to be a challenge for them.

Needless to say, that is a significant change in a very short time, and a huge change from the previous years that I have been speaking to our membership! I very much wish that we had a more extensive record of historic data to compare it to.

I haven’t been able to find a single common cause behind this, and I’m sure that as with most things there as a multiplicity of factors contributing to this change. Certainly the Australian dollar no longer being artificially inflated by the mining boom is one of them.

The prior five-to-seven years have seen many businesses needing to downsize their employee numbers in the face of decreased work orders. However this increase in work has led to a need for skilled workers so members can extend their capacity. A lot of the industry’s skill base has been lost through retirement. Some 16% of our members have been unable to find sufficient staff or apprentices to meet their needs. Others have become quite protective of the staff they have, lest they lose them to competitors.

Many Australians remain sceptical of the future viability of manufacturing and are cautious of working in it. The fact that a two-week barista course can quickly get you earning the same sort of money that a machine operator can earn after a fouryear apprenticeship in sheet metal fabrication can make it a less appealing industry for young people to come into. With the industry facing a more promising outlook than it has in years, this is a challenge that will have to be addressed. www.amtil.com.au

1382AMTIL

AMTIL is delighted to welcome Association Insurance to its Corporate Partnership Program.

AMTIL’s corporate partners offer a selection of products and services that will benefit our members in their business.

For any enquiries about our Corporate Partnerships, and how they can benefit you, contact Anne Samuelsson on 03 9800 3666 or email asamuelsson@amtil.com.au

Our Partners. Our Members. Your Benefits.

www.amtil.com.au

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Strong program content confirmed for 2018 AMTIL National Conference Tickets are still available for the AMTIL National Conference in Melbourne this month, with a diverse array of expert speakers delivering a strong program of wide-ranging content.

Under the theme ‘Strategies for Manufacturing Resilience and Growth’, the 2018 AMTIL National Conference will be held at Leonda by the Yarra in Hawthorn, Victoria, on 22 August. The one-day event will take delegates on a learning journey that will help them to build resilience in their businesses, explore opportunities for growth beyond their traditional avenues, and inspire them to think outside the square.

Alex Kingsbury

These themes will be explored in a program that encompasses every aspect of running a business today, touching on issues ranging from the relevance of automation for small manufacturers, through to how you can develop effective leadership, communication and relationship-building skills, and much, much more. To address these themes, AMTIL has assembled an impressive roster of experts who will be speaking at the Conference.

Rick Shalders

Inspiring speakers Iconic athlete Deanna Blegg will deliver the closing address at the 2018 AMTIL National Conference, in which she will be discussing ‘Personal Resilience’. In 1994, at the age of just 24, Deanna was diagnosed with HIV after years of high-level sporting success.

On being told she’d be a long-term survivor if she lived another five years, Deanna refused to be beaten; she has since had two children and spent the last ten years travelling the world, competing in sport, and yet again achieving World Champion status. At the AMTIL National Conference, Deanna will share her life journey in detail, discussing how she used solution-focused thinking to overcome obstacles and live a happy, fulfilling life. Deanna’s story shows how personal resilience can help you follow a full and rewarding path.

The chance to work with a major US defence company is something a lot of Australian manufacturers aspire to, and it’s something Rick Shalders will be exploring during the morning presentations. Rick is the Director of Raytheon Australia’s Industry Development Unit. His presentation, ‘Opportunities to work with Raytheon – What’s involved in being a supplier’, will introduce attendees to Raytheon, provide an outline of the opportunities available to companies within its supply chain, and provide insights into how source selection is performed. He will also discuss lessons learned from nine years of the Global Supply Chain program.

AMT AUG/SEP 2018

Another highlight will come from Alex Kingsbury, who will be looking at ‘Advancements & Opportunities in Additive Manufacturing’. Alex is an engineer who currently consults to companies both locally and overseas on metal additive manufacturing. Formerly the Director of CSIRO’s Lab22 additive manufacturing centre, Alex understands what it means to meaningfully connect industry to research & development activity. Alex is excited by the promise that additive manufacturing holds for the future of Australian manufacturing, and is optimistic about the transition to advanced manufacturing technologies currently taking place in the industry.

In addition, Dr Jens Goennemann, Managing Director of the Advanced Manufacturing Growth Centre (AMGC), will be delivering the keynote address, which will explore the topic ‘Building Resilience in Australian Manufacturing’. Other speakers include: Claire Madden, founder and director of strategy and communications agency Hello Clarity; author and creativity expert Gary Bertwistle; and Ian Cattanach, Director – Business Advisory at William Buck.

Opportunities to exhibit Alongside the must-see speaker program, the 2018 AMTIL National Conference will also feature a range of exhibits by some of

Deanna Blegg

the most dynamic organisations engaged in advanced manufacturing in Australia today.

Among the exhibitors participating are: Applied Machinery; Dimac Tooling; LEAP Australia; Phoenix PLM; Recruit Australia; Renishaw; Rigby Cooke; and William Buck.

A small number of exhibition stands are still available, offering a fantastic opportunity for you to promote your business at one of the key events in the Australian manufacturing calendar.

As well as a packed series of presentations and a comprehensive exhibition area, the 2018 AMTIL National Conference will offer plenty of opportunities to network and interact with peers from throughout the industry. Lunch, morning and afternoon tea will all be provided, while after the Conference program concludes delegates are invited to stay for an exclusive networking cocktail function.

AMTIL would like to acknowledge and thank William Buck for its support as Major Sponsor for the 2018 AMTIL National Conference. For more details on exhibiting at the Conference, contact AMTIL’s Events Manager Kim Banks on kbanks@amtil.com.au. To register and book your place to attend the 2018 AMTIL National Conference, scan the QR code below or visit: www.amtil.com.au/Events/AMTILConference

AMTIL INSIDE

Strategies for Manufacturing Resilience and Growth WED 22ND AUG, 2018 • LEONDA BY THE YARRA, HAWTHORN VICTORIA Emcee

Warwick Merry

8:00am – 8:30am

Registration, Tea & Coffee

8:30am – 8:40am

Welcome – AMTIL CEO

8:40am – 9:30am

Plenary Session 1 – Keynote Building Resilience in Australian Manufacturing Jens Goennemann, Managing Director, Advanced Manufacturing Growth Centre Plenary Session 2 Opportunities to work with Raytheon – what’s involved in being a supplier?

9:30am – 10:20am 10:20am – 10:40am

Recharge & Networking Break

10.50am – 11:30am

Technology Stream Leadership Stream Technology Session 1a – Leadership Session 1b – The relevance of automation for small How to structure your manufacturing business business – current activities, programs for growth and profitability and funding opportunities in Ian Cattanach, William Buck Digitalisation (Industry 4.0).

Peter Hook, Bosch Australia Manufacturing Solutions

11.40am – 12:20pm

Technology Session 2a – Advancements & Opportunities in Additive Manufacturing Alexandra Kingsbury, Additive Economics

Leadership Session 2b – Developing effective Leadership, Communication and Relationship Building skills.

John Downes, acorro

12:30pm – 1:30pm

Networking Lunch

1:30pm – 2:15pm

Plenary Session 3 Who Stole My Mojo?

Gary Bertwistle

2:15pm – 3:00pm

Plenary Session 4 Creating an Engaging Culture: Inspiring the next generation of staff and teams Claire Madden

3.00pm – 3:20pm

Recharge & Networking Break

3:20pm – 4:00pm

Plenary Session 5 Personal resilience story Deanna Blegg

4:00pm – 6:00pm

Networking Function

amtil.com.au/Events/AMTIL-Conference

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AMTIL catches up with WA membership AMTIL was out west in June, taking the opportunity to catch up with our members in Western Australia, while and also holding an industry networking event in Perth.

The networking event was held at The Gazette in Perth CBD on 7 June. This followed a last-minute scramble to change the venue after unusually wet weather meant the original location – a nearby rooftop bar – was not quite ideal.

Nonetheless, around 30 guests braved the cold and the driving rain and made it to the event, including representatives from most

of AMTIL’s WA membership, plus a few close contacts they had invited along. They enjoyed an evening of drinks and nibbbles, as well as a chance to catch up with colleagues from across the local industry.

All in all it was a very successful event, and AMTIL is planning more activities for our members out in WA in the future. www.amtil.com.au/events

Fit for the Future: Are you ready?

Gihan Perera will be the keynote speaker at an AMTIL Breakfast Seminar on 18 October, at Riversdale Golf Club in Mount Waverley, Victoria.

Gihan is a futurist, conference speaker, author and consultant. His presentation will provide you with a glimpse into what’s ahead and how you can become Fit for the Future, in both your professional and personal life. Take an inspiring, eye-opening, and engaging ride into the future to learn about the global megatrends shaping your industry, the mindset that helps you lead the change, and the skills you need to get things done in a fast-changing world.

Gihan will discuss: the global megatrends shaping business and society; influence and power in the Age of Access; How change is the new normal; and how you can take more control of your own future.

Also presenting will be William Buck’s Dr Rita Choueiri, who will be talking about the R&D Tax Incentive. Rita will go into detail on the scheme and its eligibility, shedding light on what sorts of businesses are eligible to claim.

AMT AUG/SEP 2018

Following these presentations, AMTIL will be holding its Annual General Meeting.

For more information about any of AMTIL’s upcoming events, please call 03 9800 3666, or email Events Manager Kim Banks on kbanks@amtil.com.au. www.amtil.com.au/Events

AMTIL FOOTY TIPPING 2018 Sunny days for the Suns! Round 18 delivered a golden result for the Gold Coast Suns defeating the Swannies on their home turf – some saying the biggest upset for many years! Easy tiger, there have been many more bigger upsets over the journey, none more than the ‘Orange Cheetoh’ becoming the ‘leader’ of the free world – it’ll take some doing to beat that ol’ chestnut! Footy-wise, those ‘Tiggies’ are already making room in the trophy cabinet, don’t get me wrong, there are teams that can and have beaten them, but not on the hallowed turf of the MCG – let’s just hope it’ll be good grand final. Until next time, Sanchez!

ROUND 18 1 Brian Lawry 2 Damian 3 Brendan 4 Swannies 5 Bricky 6 Lou 7 Mal 8 LukeH 9 Nick 10 Ian Swan

113 (460) 110 (420) 110 (446) 110 (543) 109 (432) 109 (463) 109 (468) 109 (478) 108 (446) 108 (466)

Real Business Real People Real Members AMTIL is an organisation that is ‘For the Manufacturer’ and that is why Hardman Bros. is a member. Manufacturing in Australia is facing some challenges and having AMTIL as our voice I believe is invaluable. The organisation of the Austech exhibition coupled with the Manufacturers Pavilion is a brilliant showcase and a great opportunity to meet with peers from the industry. AMTIL’s association with large suppliers has brought discounts to my company that pay for our membership tenfold each year, savings we need to stay competitive.

Mark Hardman, Hardman Brothers

Since 1999, AMTIL has been connecting business, informing of opportunities and growing the manufacturing community.

To be become an AMTIL member contact our Corporate Servcies Manager, Greg Chalker on 03 9800 3666 or email gchalker@amtil.com.au

amtil.com.au 1311AMTIL/MH

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INDUSTRY CALENDAR

Please Note: It is recommended to contact the exhibition organiser to confirm before attending event More events can be found on AMTIL’s website

INTERNATIONAL International Metalworking Philippines Philippines, Manila 22-25 August 2018 www.imtpexpo.com

Expomac Brazil, Curitiba 19-22 September 2018 www.expomac.com.br

SINDEX Switzerland, Berne 28-30 August 2018 Automation exhibition. www.sindex.ch/sin-de

Experience Additive Manufacturing Germany, Augsburg 25-27 September 2018 www.experience-am.com

Euro PM2018 Spain, Bilbao 14-18 October 2018 Powder Metallurgy Congress and Exhibition www.europm2018.com MTA HANOI Vietnam, Hanoi 16-18 October 2018 www.mtahanoi.com

IMEX India, New Delhi 29-31 August, 2018 www.imexonline.com

Micronora France, Besancon 25-28 September 2018 Microtechnology exhibition www.micronora.com

Medical Manufacturing Asia Singapore 29-31 August 2018 www.medmanufacturing-asia.com

Metal Madrid Spain, Madrid 26-27 September 2018 www.easyfairs.com/metalmadrid

Indometal Indonesia, Jakarta 17-19 October 2018 www.indometal.net

Automation Expo 2018 India, Mumbai 29 August-1September 2018 www.automationindiaexpo.com

MEDTEC China, Shanghai 26-28 September 2018 Medical equipment exhibition www.medtecchina.com/en-us

Automotive Hungary Hungary, Budapest 17-19 October 2018 www.automotivexpo.hu/en

TAIROS Taiwan, Taipei 29 August-1 September 2018 Taiwan Automation Intelligence & Robot Show www.tairos.tw/en CIEME China, Shenyang 1-5 September 2018 China International Equipment Manufacturing Exposition www.chinaexhibition.com ExpoAlumínio Brazil, Sao Paulo 3-5 September 2018 www.expoaluminio.com.br Manufacturing Technology Davao Philippines, Davao City 7-9 September 2018 www.globallinkmp.com/mtw IMTS USA, Chicago 10-15 September 2018 www.imts.com METAL EXPO Eurasia Turkey, Istanbul 12-15 September 2018 www.metalexpo.com.tr Foodtech Packtech NZ, Auckland 18-20 September 2018 www.foodtechpacktech.co.nz AMB Germany, Stuttgart 18-22 September 2018 Metalworking exhibition www.messe-stuttgart.de/en/amb MWCS China, Shanghai 19-23 September 2018 www.metalworkingchina.com/en

AMT AUG/SEP 2018

SteelMET Poland, Sosnowiec 16-18 October 2018 www.exposilesia.pl/steelmet/pl

International Machine Tools Expo Czech Republic, Brno 1-5 October 2018 www.bvv.cz/en/imt

PTA Russia, Moscow 17-19 October 2018 Automation exhibition www.pta-expo.ru/en/moscow/date

Toolex Poland, Sosnowiec 2-4 October 2018 www.exposilesia.pl/toolex

TECHNOFORUM Russia, Moscow 22-25 October 2018 www.technoforum-expo.ru/en

Maktek Eurasia Turkey, Istanbul 2-7 October 2018 www.maktekfuari.com/en

VIIF Vietnam, Hanoi 23-26 October 2018 Vietnam Intl. Industrial Fair www.viif.vn/en

Euromold Germany, Sindelfingen 9-11 October 2018 www.euromold.com/en ALUMINIUM 2018 Germany, Dusseldorf 9-11 October 2018 www.aluminium-messe.com/en BI-MU Italy, Milan 9-13 October 2018 www.bimu.it/en/home METALCON USA, Charlotte 10-12 October 2018 www.metalcon.com METALEX Vietnam, Ho Chi Minh City 11-13 October 2018 www.metalexvietnam.com Manufacturing Myanmar Myanmar, Yangon 11-13 October 2018 www.intermachmyanmar.com

EuroBLECH Germany, Hanover 23-26 October 2018 Sheet metal working technology exhibition. www.euroblech.com/2018/english ANNOFER Turkey, Istanbul 25-27 October 2018 www.annofer.com/home-en Russian Industrialist Russia, St. Petersburg 28-30 November 2018 https://promexpo.expoforum.ru/en/ Korea Metal Week South Korea, Goyang 30 October-2 November 2018 www.korea-metal.com/en JIMTOF Japan, Tokyo 1-6 November 2018 www.jimtof.org/en METAVAK 30 October-1 November 2018 Netherlands, Gorinchem www.evenementenhal.nl/metavak

INDUSTRY CALENDAR HEADING LOCAL Australasian Waste & Recycling Expo Sydney, ICC, Darling Harbour 29-30 August 2018 www.awre.com.au IoT Impact 2018 Conference Sydney, University of Technology 10 – 11 September 2018 Inaugural Internet of Things (IoT) conference.

Focus will be on manufacturing, smart cities, transport, energy, water and food & agriculture. www.iotimpact.com.au PrefabAUS Conference 2018 Brisbane Convention & Exhibition Centre 11-12 September 2018 Provides knowledge & networking opportunities for Australia’s prefabricated industry to explore the growing sector.

Includes keynote speakers, project case studies & workshops. www.prefabaus.org.au/conference-2018 All-Energy Australia Melbourne Conference & Exhibition Centre 3-4 October 2018 Comprehensive clean and renewable energy event. www.all-energy.com.au Safety in Action Sydney Showground 9-10 October 2018 Includes three dedicated safety zones, safety seminars and workshops. www.safetyinaction.net.au Pipeline Repair, Hot Tapping & InService Welding Sydney 23-24 October 2018 A two day workshop providing an in-depth overview of pipeline modification & repair. www.weldaustralia.com.au/pipelinerepair International Mining & Resources Conference Melbourne Conference & Exhibition Centre 28 October-1 November 2018 www.imarcmelbourne.com

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Emona Instruments

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National Construction Equipment Convention Sydney Showground 15-17 November 2018 Civil construction and infrastructure sector, with the theme ‘Think Globally, Act Locally’. www.ncecaustralia.com.au Ausrail Canberra, National Convention Centre 27-28 November 2018 Major Australasian rail event www.ausrail.com

Alfex CNC

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Allgo Engineering

71

ANCA 53 Applied Machinery

15

Aurora Labs

25

Avtech

73

Bystronic P/L

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Complete Machine Tools

35

Dimac 99

Flecknoe 21 HACO

75

Hare & Forbes

4-5

Headland OBC IMTS 33 Industrial Laser

43

Iscar 2-3 Kaeser 63 LAPP Express

77

Machinery Forum

119

Mastercam 79 MTI Qualos

65

Okuma

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Renishaw Oceania

41

Robert Bosch

51

Seco Tools

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Vaughan Constructions

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Australian International Airshow/Avalon Geelong, Avalon (Victoria) 26 February–3 March 2019 www.airshow.com.au

Whitelaw Machinery

11

Austech 2019 Melbourne Convention & Exhibition Centre 14–17 May 2019 Australia’s premier advanced manufacturing and machine tool exhibition. www.amtil.com.au/Austech

William Buck

89

Applied Machinery

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Modern Tools

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Sheetmetal Machinery

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AUSTRALIAN MANUFACTURING TECHNOLOGY YOUR INDUSTRY. YOUR MAGAZINE

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AMT AUG/SEP 2018

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HISTORY

Big wheels & little wheels – the story of UK-born Australian Sir Laurence John Hartnett (1898 – 1986) Australia’s “Father of the Holden” and much more

PART 26

PROPELLING AUSTRALIA PART 2 We want Wackett!

It is 1935. Is it time for Australia to manufacture its own aircraft? After the summons by Australia’s Defence Minister to Sir Laurence, a syndicate was formed to explore the challenges and an overseas mission launched to examine aircraft.

I

didn’t realize just how excited the new Douglas aircraft* had made these Australians. Now, after the great race, here I was in Australia in 1935, one of a group of well-intentioned men trying to set up the manufacture of planes With my assurance to Australia’s Defence Minister that GM would NOT be involved in aircraft manufacture, I suggested that he write personal letters to the top men in half a dozen of Australia’s biggest firms and invite them to meet and thrash out a plan. That appealed to him and he asked if I would draft the letter. The letters were sent to BHP; Broken Hill Associated Smelters (BHAS) and ICI. After several meetings, W.S. Robinson (MD of BHAS) said: “I propose that we form a syndicate to make a detailed examination of the problem, and see what can be done to produce our own aircraft. I think £40,000 should be enough to finance the initial work. BHAS will put up £10,000.” He turned to Harold Darling of BHP: “Will you do the same for BHP?” Darling nodded - “yes, we’ll go along with that. You can put us down for £10,000”.

Robinson said: “And how about GM-H, Larry?” I agreed to put £10,000 of GM-H cash into the pool. So each firm contributed an equal amount, which gave each an equal say in the syndicate.

We felt it was a wise investment in a national cause and money spent now on bringing such an industry into being was a form of insurance for the companies’ future in Australia. And, I made a mental note, that was exactly what I would tell GM when explaining why I had agreed to subscribe £10,000 of company cash! I had committed GM-H to the aircraft exploration plan without warning anyone at GM and I was worried about the possible reaction from New York. I told our treasurer what I had done. He said “‘You’re going to have a time explaining that one away aren’t you?”

But he didn’t complain, and the cheque went out.

With the syndicate formed and some money available, the next requirement was knowhow. We had to discover which of the types of aircraft and engines being made in other parts of the world would best suit Australia’s immediate requirements.

Other members of the syndicate suggested that I should lead a mission to America, Britain and the Continent to study what was

happening in the big aircraft plants.

They nominated me, I guess, because I had more knowledge of aircraft than the others-and I probably did a lot of the talking.

But I declined the offer because I had too many urgent matters of immediate concern to GM-H on my plate. Robinson said, “Well, Larry, if you can’t go, would you find someone who can undertake the job?” I asked Dickie Williams (Chief of Air Staff, RAAF) if he could suggest someone. Dickie didn’t hesitate. “Wackett’s your man.

Lawrence James Wackett, ex-wingcommander, RAAF - good flying record in the war - we’re been putting our chips on him to design aircraft for us; he’s a terrific enthusiast. At present he’s running Tugan Aircraft in Sydney for Carpenter.” I was still fairly new to Australia and hadn’t heard of Wackett. I liked the sound of him, though.

Even his name had a good ring. Whack-it! I liked it.

Wackett was very keen to be in it with us. But he was tied by contract to Tugan Aircraft, owned by a fellow named Sir Walter Carpenter. I put it to Carpenter that Wackett was the man we needed to get this nationally important aircraft manufacturing industry started. “I can see that” said Carpenter, “But what about me? I’d be lost without Wackett. He’s got a couple of planes partly made now, and there are others on the way. I can’t let him go.

I suspected Carpenter’s aircraft venture was only a sideline and my questions to him soon confirmed that. I laid the facts of our plan down cold. I told him we wanted Wackett and when you reel off names like BHP, ICI, Associated Smelters and GM-H - it really is weighty business. Carpenter explained he had come to the aid of Wackett and the Government by supplying finance for the construction of some aircraft. He said he would sell out to us for £15,000. This would enable us to get Wackett, the plant

Sir Lawrence James Wackett (1896-1982) who came to be widely regarded as the “father of the Australian aircraft industry”.

and the aircraft then being built. I agreed.

We shook hands on the deal-and I went back to Melbourne to tell my colleagues in the syndicate that we had bought an aircraft factory and an expert.

I was half-expecting some criticism for my action in spending £15.000 of the syndicate’s cash, but to my great pleasure and surprise, Robinson said “Good work, Larry. Now, at least, we won’t have to contend with any squawking competitor”.

Wackett’s first assignment was to be the world trip.

To be continued… *2nd place-getter in the great London to Melbourne air race of 1934, featured in the last edition of AMT.

This is an extract from ‘Big Wheels & Little Wheels’, by Sir Laurence Hartnett as told to John Veitch, 1964. © Deirdre Barnett.

AMT AUG/SEP 2018

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