JUN JUL 2020
DIGGING A WAY TO RECOVERY
MINING & RESOURCES
Special Feature: Manufacturing & COVID-19 State Spotlight: Victoria
JUN JUL 2020
DIGGING A WAY TO RECOVERY
MINING & RESOURCES
Special Feature: Manufacturing & COVID-19 State Spotlight: Victoria
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CONTENTS
Volume 20 Number 03 JUN/JUL 2020 ISSN 1832-6080
FEATURES SPECIAL FEATURE: MANUFACTURING & COVID-19 Manufacturing & COVID-19 A New Deal for Australian Manufacturing ANCA: Manufacturing life-saving ventilators locally
42 48 51
MINING & RESOURCES Mining exploration research: growing mining & METS Mining to help dig economy out of COVID-19 hole Critical minerals are vital. We must mine responsibly FLSmidth ABON gears up with Mazak and hyperMILL Boral Logistics invests in MaxiTRANS
56 60 62 64 66
FORMING & FABRICATION IMTS Machinery – Partnering in productivity On-shoring – Returning manufacturing to Australia
68 70
MATERIAL REMOVAL Hydrafeed boosts productivity at Maltec Engineering
71
STATE SPOTLIGHT: VICTORIA AW Bell – Setting new standards Sussex Taps – Home-grown success
66 72 74
ADDITIVE MANUFACTURING Improving race-car performance with Markforged AM Hub case study: Advatek Lighting ACTIVAT3D copper proven to kill COVID-19 on surfaces Leading the way with 3D printing
78 80 82 84
CUTTING TOOLS No set-up, no downtime for Smart Factories Dormer Pramet strengthens die & mould capabilities Manufacturing efficiency = Satisfied customers Value, quality & partnership trump cost
86 89 90 92
AGRICULTURE, FOOD & BEVERAGES Kaeser: A ‘Tasti’ solution for control and efficiency ICT International grows its footprint locally & abroad Enmin vibratory equipment a key ingredient for Whittaker
96 98 99
SAFETY New wearable technology eases the load Reimagining WHS during and after COVID-19 Smart fever monitoring system Reducing WHS compliance risk
100 102 103 104
WELDING Coregas completes major fabrication installation
106
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
20
VOICEBOX Opinions from across the manufacturing industry
30
PRODUCT NEWS Our selection of new and interesting products
36
ONE ON ONE
52
COMPANY FOCUS Precision Metal Group – Nurturing skills, building capability
94
AMTIL FORUMS
108
AMTIL INSIDE – The latest news from AMTIL
112
MANUFACTURING HISTORY – A look back in time
118
AMT JUN/JUL 2020
42 Manufacturing & COVID-19 The COVID-19 pandemic has had a profound impact across Australian society and economy – including the manufacturing sector. AMT spoke to three manufacturing companies that have been affected.
52 One-on-One Warren Jansen is the Executive Director of Industry Capability Network Limited (ICNL). He spoke to AMT
56 National mining exploration research expected to grow mining & METS sector Mining equipment manufacturers are contributing to efforts to halt a decline in Australia's new mineral deposits.
94 Precision Metal Group – Nurturing skills, building capability Upskilling their workers and growing both its client offering and certification have all been vital to PMG’s success. Their securing of a valuable certification was the first in the Southern hemisphere
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010
FROM THE EDITOR WILLIAM POOLE
Meeting the challenge of the new normal When the last edition of AMT went to print, we were just heading into lockdown, the country gripped by uncertainty and foreboding over the COVID-19 pandemic and its potential impact. As this edition nears completion, Australia seems to have been spared the worst impacts of the virus, and the country is taking its first tentative steps towards easing restrictions and returning to normal life. While we must remain cautious given the threat of a second wave, things are looking good. Nonetheless, the pandemic has taken an immense toll. Lives have been lost, first and foremost. Moreover the economic fallout will be deep and long-lasting. In April alone, Australia’s unemployment rate jumped a full percentage point from 5.2% to 6.2%, while Deloitte Access Economics has suggested the budget deficit could hit $143bn following the Government’s (much-needed) stimulus measures. For our industry, the Australian Performance of Manufacturing Index (PMI) for April recorded its largest fall in the 28-year history of the index. Things are looking bad. So where do we go from here? With talk now turning to how we recover from this crisis, what will that recovery look like? Will we return to business as usual, or is the “new normal” here to stay? These questions are addressed in a new report from KPMG, ‘Our New Reality: Predictions after COVID-19’, which envisages permanent changes to the way Australians live and work due to the pandemic. The report explores a number of key themes, from a move to more flexible ways of working (including a greater emphasis on home-working), to the post-pandemic debt burden. Digital commerce will expand in more sectors, and demand for smarter, more agile supply chains will drive significant investment in logistics and delivery infrastructure. For businesses, continuity and resilience will become a core capability. And there will be a renewed focus on climate change, which will attract more capital investment in new technology. Some of the most intriguing sections of the report concern manufacturing, echoing recent commentary about the way COVID-19 has revealed how our interconnected, globalised world leaves us exposed in times of crisis. KPMG anticipates consumers shifting preferences towards local businesses, governments adopting more of a ‘local-first’ stance in procurement policies, and companies being forced to re-evaluate offshore operations. This, according to KPMG, could see local manufacturing reinvigorated, heralding an “innovation boom” as established companies and a wave of new start-ups set about solving the problems and grasping the opportunities that emerge under this new normal.
Editor William Poole wpoole@amtil.com.au Contributors Carole Goldsmith ; Brent Balinski Sales Manager Anne Samuelsson asamuelsson@amtil.com.au Publications Co-ordinator Gabriele Richter grichter@amtil.com.au Editorial Assistant Sarah Cayless 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 PEFC™ Programme for the Endorsement of Forestry Certification Chain of Custody certified from sustainable forests 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
“The onset of COVID-19 has exposed existing weak links across industries, government and in our economy,” says James Mabbott, Partner-in-Charge, KPMG Futures. “The urgency and importance of addressing these weak links has radically shifted and many decisions and discussions have been brought forward. We expect to see a previously unimaginable boost to the simultaneous transformation of industries and society.”
© 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)
What seems certain is that manufacturing will have a key role to play in that transformation. And judging by the way Australian manufacturers rallied in support of efforts to combat COVID-19 (many examples of which can be found in this magazine), we are well equipped to meet what challenges lie ahead.
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.
Disclaimer
AMT Magazine is dedicated to Australia’s machining, tooling and sheet-metal working industries and is published bi-monthly. Subscription to AMT Magazine (and other benefits) is available through AMTIL Associate Membership at $175 (ex GST) per annum. Contact AMTIL on 03 9800 3666 for further information. 1502AMTJUN/JUL2020
AMT JUN/JUL 2020
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012
FROM THE CEO SHANE INFANTI – Chief Executive Officer AMTIL
Government response to COVID-19 most welcome The Prime Minister announced the establishment of the National COVID-19 Coordination Commission (NCCC) on 25 March 2020. The role of the Commission is to co-ordinate advice to the Australian Government on actions to anticipate and mitigate the economic and social impacts of the global COVID-19 pandemic. AMTIL welcomes the recently established National COVID-19 Coordination Commission and looks forward to working with its members over the coming months. The Commission is working across business-to-business and business-togovernment networks to unlock resources, break through bottlenecks and fix problems so Australian businesses and communities are supported in the months ahead. I recently met with a few members of the Committee and discussed a number of issues and opportunities that face our sector. I discussed the three key areas that are needed to support the Australian manufacturing industry’s sustainability and growth. The need for us to continue investing in technology, continue developing the skills of our people and continuing to explore market access opportunities are paramount to a strong manufacturing sector coming out of COVID-19.
Investment in technology AMTIL’s surveys and statistics have shown a recent decline in investment in capital equipment and machine tools. The last time we saw declines of this order were in 2009 and 2015, both resulting in a 12-24 month slump in orders. We simply cannot afford to see a slide like this again. Keeping up with the latest technology, learning how to do things better, investigating how Industry 4.0 methodologies will impact your business, etc are all important cogs in being globally competitive. We talked about the Instant Asset Write Off legislation and I spoke to the NCCC about the potential to increase the accelerated depreciation limit from $150,000 to $500,000, which would be a great incentive to investment in capital equipment. I also talked about a persistent and consistent campaign to work with manufacturers and support them in identifying technologies, methodologies and techniques that are going to drive their businesses forward. We are currently working with the NCCC to seek government support for a five-year Technology Diffusion Program AMTIL is formulating.
Development of skills It is no surprise to hear that skills and training, or more importantly the lack of it, continues to be a barrier to success. Coming out of COVID-19, there will be displaced workers and a pool of
AMT JUN/JUL 2020
The Commission has two key roles: to help minimise and mitigate the impact of COVID-19 on jobs and businesses, and to facilitate the fastest possible recovery of lives and livelihoods. unemployed that will be able to be reskilled and make a difference in industry-specific roles. Given the lack of international travel, we will not have the luxury of importing skills for a period of time and will have to keep finding ways to develop local talent. We need to find better pathways from tertiary education to employment for our engineers. We spoke about the image of our industry and the need to change it. How are we going to encourage the next generation of our workforce into action? AMTIL has plans to reinvigorate the Young Industry Ambassador Program, where 20-25-year-olds who are making their mark in our industry, go into secondary schools and talk about their story and what great employment and career opportunities there are in manufacturing. Young people spruiking to young people about great careers. We will continue working to seek government support for that activity too.
Market access The recent crisis has resulted in many products and parts being sought locally and the concepts of reshoring and onshoring needs to continue in even greater numbers. We spoke about the need for supply chains to be developed and mechanisms for second and third-tier businesses being able to tap into major
projects. The local content stipulations on government procurement needs to be reviewed and the processes for enforcing local content needs to be resourced so companies are accountable to their contracts. The “Buy Australia” mentality that we believe is going to be strengthened through the retail sector needs to be applied in a business environment too. That will be a challenge. We discussed the need for export development to continue and possible changes to the Export Market Development Grant to extend it for businesses that have already used their quota. We also discussed many other issues including the R&D Tax Concession turnover limit being increased from $20m to $50m, energy reform and gas & electricity costs and how the government may offer subsidies around input costs. AMTIL is currently in the process of developing a submission to the NCCC for their consideration. We look forward to working with the Commission over the coming 12 months to help implement some programs and assistance that will help our industry recover from the COVID-19 epidemic as quickly as possible. Neville Power, Chair of the National COVID-19 Coordination Commission
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014
FROM THE MINISTRY THE HON KAREN ANDREWS MP – Minister for Industry, Science and Technology
Australian manufacturers show their ingenuity and resilience Time and time again I’ve said Australia will always be a manufacturing nation. Despite the impacts of COVID-19 working against them, the pandemic has truly brought out the best in Australian manufacturers. As Industry Minister, an engineer, and a member of the community, I’ve never been more proud of our Aussie manufacturers and their response to the challenge of supplying the essential medical products our frontline health heroes need and will continue to need even after a vaccine is found. There has been an overwhelming surge within industry to ramp up production to meet unprecedented demands on supply, as well as overhaul traditional practices and processes to charter new manufacturing territory. I’ve seen car manufacturers helping to build ventilators for sick patients, candle makers turning to produce hand sanitiser, and packaging companies pivoting to make surgical face masks. That’s what I call the Aussie spirit of ingenuity and resilience in the face of adversity. It is because we have such a strong and diverse manufacturing base that the sector has been able to respond so effectively. But at the same time, the coronavirus has revealed areas where we need to strengthen our domestic capability, particularly to be on the front foot should any future crisis occur. Prime Minister Scott Morrison’s Government will continue to strongly support our manufacturing sector through a range of measures, but we need to bring local businesses and consumers along with us. Consumers need to get behind the push for a larger and stronger manufacturing sector in Australia by buying local products. At the beginning of the crisis, we were faced with what seemed like an impossible task of rapidly securing enormous amounts of personal protective equipment (PPE) for the National Medical Stockpile, and for the states and territories’ frontline health workers. It goes without saying industry stepped up, big time. In March, one of the Morrison Government’s six Industry Growth Centres, the Advanced Manufacturing Growth Centre (AMGC), introduced a portal for businesses to register interest and core competencies in support of the national response to the pandemic. The reaction was immediate and impressive, with the first 1,000 submissions to the COVID-19 Manufacturer Response Register being received in just under a week. To date there have been more than 2,500 submissions from across the country, with manufacturers, material suppliers and individuals offering their services. Of those, 55% have offered manufacturing capability, 18% material supply and 27% skills or expertise. I’m so proud of all of the work on boosting local manufacturing of PPE, ongoing partnerships across jurisdictions, and truly unique innovations that have resulted from this portal. For example, with the help of AMGC, Victorian company Grey Innovation has led a consortium of major engineering and manufacturing companies and leading clinicians to produce certified Australian-made medical ventilators under a $31m contract with the Morrison Government. These ventilators will help sick patients in intensive care units.
AMT JUN/JUL 2020
AMGC also helped facilitate the partnership between Stryker South Pacific and AH Beard, AmTek Australia, Fallshaw Wheels & Castors and Varley Group to produce the Emergency Relief Bed. The innovative bed has been designed to accommodate patients in respiratory distress and provides critical surge capacity of hospitals during the pandemic. Within six days Stryker’s Australian arm, in partnership with AMGC, mapped a local supply chain to adapt the design, create prototypes and begin production of the Emergency Relief Bed in Australia. Thanks to the efforts of Australians in flattening the curve, we may not need these beds, but the consortium is well equipped and ready to support us as well as our regional neighbours should the need arise. AMGC has also assisted more than 50 companies pivoting to making hand sanitiser with Therapeutic Goods Administration regulations and linked businesses to each other. This includes introducing bottle manufacturers providing local bottles and closures to distillers now manufacturing hand sanitiser. While this crisis has shown the strength and breadth of capability, capacity and skill of the Australian manufacturing sector, as I said earlier there is plenty of scope for it to be stronger and extend beyond the local manufacturing of PPE. Last year, I started talking to the manufacturing sector in depth, hosting a series of roundtables to consider the future of manufacturing in Australia. One key point that came out of those meetings very clearly was that we have to compete on value. And we have to build on our comparative strengths, like mining, agriculture and med-tech, where we are world-leading and can add value. We will always be a substantial importer of goods, but we cannot just rely on foreign supply chains for the essential items we need in a crisis. We can’t supply all our wants locally but we have to be able to supply the goods we need. In working together to advance the manufacturing sector, we need to be very targeted and very specific. We need to look at the quality, sustainability and longevity of products and build that into our capability here so we can compete on a value basis, rather than just cost. And of course we are a safe, secure nation to do business in, and if we can work through and establish the appropriate and correct supply chains, then we have a very good proposition to offer not just our fellow Australians and our businesses here, but also globally. I am very confident that the lessons we are learning in this crisis will open up new opportunities for our manufacturing sector and that it will emerge stronger than ever. Indeed, there is an opportunity for local manufacturers to build on the goodwill of a community that wants them to succeed, both now and on the long road ahead. We’re all in this together.
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016
FROM THE INDUSTRY INNES WILLOX – Chief Executive Australian Industry Group
Rediscovering the value of manufacturing In the first weeks of March, as the health and economic effects of the coronavirus (COVID-19) pandemic deepened, it quickly became apparent that overseas supply lines for vital medical and safety products had been cut. In many cases there were few local manufacturing alternatives. I know of one importer who successfully ordered one million masks from China only to have that order cancelled due to a competing order from the US for 100 million of those same masks. The nation scrambled, manufacturers retooled to produce urgently needed supplies, and there was a concerted effort on the part of governments and manufacturers to come together nationally to identify ways to swiftly ramp up local production. This has led in more recent weeks to manufacturing gaining more public and political attention than at any time for a generation. We are now asking: how sure are we of reliable supplies of food, medicine, fuel and hospital equipment? We are seeing how well-capitalised firms with diverse customer bases can plough on when others quickly close. We are hearing of cosmetics companies and brewers making hand sanitiser, and defence equipment companies making ventilators. We have rediscovered what is in fact a big employing section of the economy many had disregarded or relegated to ‘sunset’ status. We have found it resilient, resourceful and highly skilled. And bloody useful. And that’s a good thing. The shortages of vital equipment also generated an important debate about Australia’s management of global supply chains. We have brushed up against hard lessons about overreliance on single sources of imports. We should not forget the wealth that we have accrued as a trading nation, and from not attempting to make everything ourselves. The reconciliation of these competing pressures lies firstly in understanding what is strategically important, and secondly in valuing diversity of supply and flexible capacity underpinned by solid foundations in innovation, science, engineering and basic manufacturing nous. Hopefully it heralds a more permanent revaluing by the community and political class of the industrial sector of the economy and manufacturing in particular. Thanks to the Prime Minister and the National Cabinet, and unlike other countries, manufacturing was fortunately able to continue operating in Australia during the shutdown, alongside other industries such as construction and parts of retail. Manufacturing does not rely on people gathering in unregulated crowds for social or consumption purposes. Like much of the industrial sector of the economy, manufacturing was able to adopt hygiene and social distancing protocols and continue to operate, not unaffected by any means, but not closed by official order. It kept its head down, kept its hands clean, and kept its distance. It experienced relatively little by way of transmission, suggesting strongly that it was the right call to keep manufacturers operating. Prior to COVID-19, two challenges stood out for local manufacturing – skills and energy – and they haven’t gone away. The rush to working from home and on-line interaction has highlighted the importance of learning and applying new skills
AMT JUN/JUL 2020
immediately. This reflects a trend that was already occurring in chunking learning into more discrete units aligned with workplace needs – a more rapid cycle of “learn and apply” than the traditional model used in vocational education, based on two or three-year courses and qualifications. This trend to microcredentialing is likely to pick up speed. Another effect has been to highlight the role that STEM skills play in underpinning our standard of living – whether it is through health research, IT support or retooling engineering firms to make respirators. The COVID-19 economy has been driven by caring and STEM skills. A third effect is to reappraise the benefits of work-integratedlearning, the most traditional example of which are apprenticeships and traineeships – learning on the job, rather than before the job. Again, this trend was already emerging across a wide range of industries that were starting to see the advantage of simultaneous learning and working rather than expecting learning before employment. Energy will be a critical part of the future of Australian manufacturing. Local power and gas prices have plunged along with the global economy, giving a small silver lining for energy users amid very dark clouds. Equally, energy prices could rebound later if recovering oil prices translate to higher gas prices, or we mismanage the next wave of retirements from our ageing coal generator fleet. But Australia could build a more durable energy advantage, by reforming and investing now to deliver an energy system that can sustain durably low prices; and by radically improving our energy productivity. Capital investment and upskilling can help many businesses get much more value from each unit of energy consumed. Governments and stakeholders are increasingly aware of the opportunity this presents both to boost post-pandemic growth and to put that growth on a stronger foundation. In the most ambitious energy vision, Australia could be able to radically expand its energy-intensive industries based on competitive advantages: the economic logic that has made it more efficient to send our energy and mineral resources overseas for processing could flip in a decarbonising world, making Australia a logical place to produce metals cleanly and cheaply. Much work will be needed if that is to come to pass. In the past couple of months, while manufacturing businesses have been operating, they have still been doing it tough. Ai Group’s Australian Performance of Manufacturing Index (PMI) for April saw the worst activity levels in the survey’s near three-decade history. As our economy prepares to return to work, the hope is that the orders that have dried up in recent weeks will once again pick up and those businesses that have been able to keep operating will be in the box seat for the recovery. We will hopefully also have a new appreciation of the value that locally based manufacturers bring to the economy and of diversity in our international supply chains, and a reassessment of the ways that public sector decisions can be leveraged to extend areas of competitive local supply.
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FROM THE UNION PAUL BASTIAN – National Secretary Australian Manufacturing Workers Union
Manufacturing jobs the key to weathering the crisis and building resilience In February, most Australians didn’t know that we made medical facemasks in Shepparton, toilet paper in Queensland, or ventilators in Sydney. Such has been the 40-year narrative about the death of the Australian manufacturing industry that you could be forgiven for thinking that we don’t have any manufacturing industry at all. Yet 920,000 Australians work in manufacturing across nearly 50,000 businesses which contribute more than $100 bn to our economy each year. Australia’s manufacturing industry is the heart and soul of many regional and outer-suburban communities. These are the parts of the country that were already doing it tough before the COVID-19 crisis. The government should invest now in the manufacturing industry to protect existing jobs and to create more jobs once the full scale of the economic impact is revealed. Right now, we export only $85 bn in manufactured goods but import $250 bn. Forty years of failed economic policies that have seen good jobs move offshore and eroded our skills base. This crisis has exposed the dangers of relying on long, international supply chains, and has reinvigorated public and political interest in Australia’s sovereign capability. The challenge for all of us in the manufacturing sector is to ensure that this shift in consciousness leads to permanent policy changes that will make a real difference to the long-term viability of Australian manufacturing. If we invest in a local manufacturing industry, Australian workers and businesses could be making the things that Australian families want and need. This not only provides jobs at this critical time, but will help Australia to move towards a high-skill, high-wage, lowcarbon future. The Federal and State Governments can lead by example and support Australian businesses and Australian jobs by instituting a “Buy Australian” procurement policy immediately. For too long, Australian firms have been locked out of government contracts because domestic manufacturing is more expensive than manufacturing offshore. This simplistic assessment fails to consider the full cost-benefit analysis of supporting Australian jobs and creating a strong manufacturing ecosystem here. Moving forward, governments must consider the wider benefits to the Australian community of buying and building Australian and amend their procurement policies to reflect that. Australian taxpayer money should be spent supporting Australian businesses and Australian workers.
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For decades, governments have assumed that other countries would be able to provide us with the things that we need. The current crisis has shown the flaws in that thinking.
The COVID-19 crisis is only a few months old and we have no way of knowing how deep and enduring its impacts will be. With the impact of climate change just beginning to be felt, we can expect more frequent and more serious interruptions to global supply chains in the future.
Once we understand what these “must have” goods and services are, there is a clear mandate for the Government to ensure that they can be made in Australia. With that mandate the Government should set a bold vision and invest in a manufacturing sector that can make Australia a self-reliant nation.
Our modern economy and society need sophisticated manufactured goods. Sadly, we look to other countries to provide most of the high-tech items that our businesses and households rely upon.
For decades, governments have assumed that other countries would be able to provide us with the things that we need. The current crisis has shown the flaws in that thinking.
We need to build a country with a more diverse, sustainable and self-reliant economy. Our government should be working to support and grow small businesses into more diverse and resilient medium sized businesses.
The Government must set a clear expectation of what needs to be made here and support local businesses and their supply chains to provide it. The best way to provide that support would be through a manufacturing investment corporation, created and funded by the Federal Government to Diversify, modernise and grow our local manufacturing industry.
Our current standard of living requires well-developed trade. But it also requires significant independence in critical goods. We must diversify our domestic economy develop resilience to external shocks which may limit our access to international markets for periods of time. As a nation we should emerge from this crisis with a clearer understanding of what we need to keep our nation healthy, safe and free. Food and clean water are the obvious first choices and they cannot be taken for granted. We need the capability to locally produce medicines, machinery, medical instruments and much more besides.
The government should establish a permanent tripartite taskforce to localise our supply chains, improve skills and productivity, and grow our industry – while creating good-quality jobs to take up the slack from other industries. It is no longer enough to say that the market will find a way. We must expect that the Government will show leadership and engage with industry to ensure that we are not left with critical shortages that would undermine our way of life.
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INDUSTRY NEWS
‘Buy Local’ policies to help Australian resurgence The Australian Made Campaign Ltd (AMCL) is calling on Australia’s business community and all levels of government to adopt ‘buy Australian first’ procurement policies, to help fast-track the country’s resurgence as it plans its recovery from the impact of COVID-19. The Federal Government’s recent commitment to support an increase in the domestic manufacturing of critical products such as medical supplies is a good start. However, according to AMCL Chief Executive Ben Lazzaro, there is more that can be done, and a co-ordinated push to ‘buy local’ has the potential to play a big part in getting Australia back online. “Australia’s economic landscape will be forever changed,” he said. “However, there is an opportunity for federal, state and local governments, as well as Australia’s business community, to take the lead and put policies in place that prioritise genuine Aussie products for major projects, supply contracts and everyday consumables. Reinvesting in local industry and local jobs through sustainable purchasing policies will go a long way towards helping Australia bounce back.” Research conducted by Roy Morgan Research in 2017, found that while three-quarters of businesses had a preference for buying Australian products, only 26% of those surveyed were found to have an official policy in place. “The time is right to transition that preference into written policy,” added Lazzaro. “It comes at a time when there is also increasing awareness of the high quality and safety standards Australian producers must meet, as well as demonstrable value for money over product lifecycles—important considerations for procurement professionals.” Australia’s overreliance on imported products has been highlighted during the COVID-19 pandemic. “It’s time to address this imbalance,” said Lazzaro. “Let’s take a long-term view and increase our level of manufacturing self-
sufficiency. While there will always be a requirement for imports, it’s important we get the balance right between local and offshore manufacturing, to ensure Australia’s long-term prosperity.” Australian manufacturers have already demonstrated their capacity to adapt and innovate during these challenging times, with many retooling to produce much-needed medical supplies and equipment. “It’s important that we don’t neglect this enormously effective resource,” said Lazzaro. “Australian manufacturers produce products made to some of the highest quality and safety standards in the world, while at the same time creating local economic activity and employment opportunities.” In nearly every product category, there is an Australian option, from furniture, bedding and health products, through to building materials, industrial products and office consumables. “Let’s leverage this unique skill-set on our doorstep to help build our infrastructure, furnish our schools and new building developments, provide beds and health enhancements for our healthcare facilities, or to simply keep our offices stocked with everyday supplies from Australian makers,” said Lazzaro. Lazzaro said given the rise in demand for locally made and grown goods by consumers and businesses alike, it was important for producers to market their products with prominent country-of-origin branding. For businesses seeking to identify potential Australian product suppliers, the AMCL website (www.australianmade.com. au) features the world’s largest online directory of genuine Australian Made products.
CSIRO appoints new Director of Manufacturing CSIRO has named Dr Marcus Zipper as its new Director of Manufacturing, as it announced a number of new leadership appointments. Dr Zipper was appointed after outperforming a global pool of candidates. He has held a number of senior leadership roles at CSIRO over a distinguished 15-year-period, including Director of the Challenges and Digital Transformation program, and Director of CSIRO Services. In addition to an impressive CSIRO career, Dr Zipper has extensive experience with a range of industries and sectors, where he has lead teams responsible for business development, commercialisation and strategy development and implementation. “Marcus is well-positioned to help Australia harness the many opportunities for growth in Australia’s manufacturing industry,” said CSIRO Chief Executive Dr Larry Marshall. Dr Zipper will commence in the role mid-year when long-standing director Dr Keith McLean steps down from his role before retiring from CSIRO after a distinguished 31-year career. CSIRO also announced that Professor Jon Whittle will take up the role of Director Data61, its data science arm, from July. Professor Whittle is a world-renowned expert in software engineering and human-computer interaction, with a particular interest in IT for
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social good. He is currently Executive Dean of the Faculty of Information Technology at Monash University and Founding Co-Director of the university-wide Monash Data Futures Institute, which is leading applied AI research in health sciences, sustainable development, and policy and governance. “Professor Whittle’s work is highly interdisciplinary, making him an excellent fit for CSIRO and our connected, multidisciplinary approach to solving the greatest challenges,” Dr Marshall said. “Since we created Data61 as part of Strategy 2020, CSIRO has become home to Australia’s leading data science and innovation group, partnering with government, industry and academia to solve Australia’s largest data-driven challenges underpinned by deep science and technology. “Jon is well placed to take CSIRO’s digital journey into its next phase, maximising the opportunities that digital and data science can deliver for the nation, and the world.” Dr Simon Barry will take up the position of Deputy Director Data61. Dr Marcus Zipper, CSIRO’s new Director of Manufacturing.
INDUSTRY NEWS
Matchmaking platform to boost supply chains Australian businesses wanting to join the response to the COVID-19 pandemic will have greater access to potential partners and customers thanks to an industry matchmaking site backed by the Federal Government. Developed by the Advanced Manufacturing Growth Centre (AMGC), the COVID-19 Manufacturer Response Register brings together manufacturers, suppliers and customers via a self-managed platform. Industry Minister Karen Andrews said finding a solution to connect local supply and demand for personal protective equipment (PPE) was at the forefront of the Government’s response to the COVID-19 crisis: “Industry asked for this and we have delivered. This digital platform is the missing puzzle piece that will unlock widespread collaboration across the manufacturing sector and boost domestic capability by creating and expanding local supply chains. “The matchmaking platform has already resulted in local businesses pivoting to produce essential medical supplies for COVID-19 – keeping Australians in work and building long-term capability in the recovery phase. Importantly, the platform can be used by hospitals, GPs and community groups to find Australian suppliers of essential products such as hand sanitiser, ventilators and PPE not just now but into the future. I don’t want Australian production of essential medical supplies to be a flash in the pan. This needs to be capability that industry maintains well after we come out the other side.” The platform will initially combine AMGC’s COVID-19 Manufacturer Response Register database of 2,500 submissions with a further
600 local businesses identified through the Department of Industry, Science, Energy and Resources’ recent Request for Information on PPE production capability. AMGC Managing Director Dr Jens Goennemann said the willingness of Australian manufacturers to support the current crisis demonstrates the strength of the industry: “Australian manufacturers are highly skilled, resilient and willing, and this enhanced platform allows them to continue to support the COVID-19 response while offering their services to a broader range of potential customers. Collaboration is key to the manufacturing industry’s continued success and we encourage manufacturers, suppliers and customers to leverage the platform to benefit all participants. We want to ensure that the overwhelming offers of support from manufacturers, suppliers and individuals live as a resource and continue to provide solutions long after this pandemic.” The capability-matching feature of the platform allows companies to post a need, solution or capability online, to be shared on a live community feed. The supply-matching feature helps suppliers connect with organisations looking for crucial supplies across the manufacturing value chain. The COVID-19 Manufacturer Response Register platform can be accessed at: www.amgc.org.au
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INDUSTRY NEWS
New energy plan could boost exports, create jobs, and cut emissions Australia has an historic opportunity to create a multi-billion-dollar, export-focused manufacturing sector based on globally competitive renewable energy, according to a new report from public policy thinktank the Grattan Institute. Start with Steel: A Practical Plan to Support Carbon Workers and Cut Emissions shows that using Australia’s plentiful wind and solar resources to make energy-intensive ‘green’ commodities could create tens of thousands of jobs. Moreover, these jobs could be concentrated in regions that currently employ tens of thousands of coal miners and other ‘carbon workers’ whose jobs are threatened by global efforts to tackle climate change by cutting greenhouse gas emissions. Capturing about 6.5% of the global steel market would generate about $65b in annual export revenue and could create 25,000 manufacturing jobs in Queensland and NSW. “Climate change is a wicked conundrum for Australia,” says Tony Wood, the Grattan Institute’s Energy Program Director and the report’s lead author. “It’s a threat to our health and to our agriculture and tourism industries – but tens of thousands of Australians work in industries that rely on fossil fuels. Our practical plan could be a win-win-win: it would create a new export industry, support carbon workers, and cut emissions.” The report assesses the potential of three sectors to help make Australia a green energy superpower: aviation fuel, ammonia, and steel. It concludes that green steel represents the best opportunity for exports and job creation in key regions. Green steel uses hydrogen produced from renewable energy to replace metallurgical coal to reduce iron ore to iron metal. According to the report, Australia’s extensive wind and solar energy resources mean we can make hydrogen, and therefore green steel, more cheaply than countries such as Japan, Korea, and Indonesia. To do this at a global scale will require big industrial workforces – such as those found in the coal-mining regions of central Queensland and the Hunter Valley in NSW. It is cheaper to make green steel
in those places, where labour is available and affordable, than in the Pilbara in Western Australia – despite the cost of shipping iron ore to the east coast. Smaller but still valuable opportunities in green steel and aviation biofuel exist in other locations, including Port Kembla in NSW, Portland in Victoria, Whyalla in South Australia, and Collie in WA. Investment to create a global-scale export industry would have to come from the private sector, but Australian governments should act now to ensure we can capture this opportunity. To build local skills and capability in low-emissions steelmaking in the next decade, the Federal Government should help fund a low-emissions steel ‘flagship’ project. This could use WA’s low-cost gas to make steel with lower emissions than coal, or it could help modernise the steel plants at Port Kembla or Whyalla and sustain existing jobs. Governments should fund and publish pre-commercial studies of geological potential in Australia for hydrogen storage. Federal, state, and local governments should also play a role in co-ordinating land use planning and regional development and helping workers to retrain. Australia could also support a new, sustainable biofuels industry that uses non-food biomass sources. The Federal Government should consider mandating that a set share of domestic aviation fuel comes from such biofuels. This could create hundreds of jobs in centres such as Collie, Portland, and Victoria’s Latrobe Valley. “For too long, adding value to Australia’s energy and minerals resources and creating sustainable jobs through manufacturing and exporting have been the stuff of dreams,” Wood says. “Not anymore. If we get this right, we will resolve the great climate conundrum that has stretched our political fabric for more than a decade.”
Titomic in groundbreaking deal with Airbus AMTIL member Titomic has reached a ground-breaking agreement with Airbus where Titomic’s patented TKF technology will be used to demonstrate high-performance metal parts for the European aircraft manufacturer. Titomic CEO Jeff Lang said: “We are pleased to partner with Airbus for this initial aerospace part made with Titomic Kinetic Fusion (TKF), the world’s largest and fastest industrial-scale metal additive manufacturing process. The TKF process is ideally suited to produce near-net shape metal parts for the aerospace industry using our patented process of fusing dissimilar metals that cannot be produced with either traditional fabrication methods or metalbased 3D printers.” The delivery of these demonstrator parts to Airbus, and its subsequent technology review process of TKF aerospace parts, is further validation of the extensive certification that is being undertaken under Titomic’s IMCRC project, co-funded by the Federal Government, with partners CSIRO and RMIT. Airbus installed its first 3D printer in 2012, with the first 3D-printed metal part, a titanium bracket, used in a commercial jetliner in 2014. Today, more than 1,000 3D-printed parts are used in Airbus aircraft. “3D printing, of which TFK is the leading technology, has
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the potential to be a game changer post the global COVID-19 pandemic supply chain disruption, as aircraft manufacturers look to reduce production costs, increase performance, improve supply chain flexibility and reduce inventory costs,” Lang added. “And TKF, co-developed with the CSIRO, can be an integral part of this change. “Regulations force aerospace manufacturers to provide spare parts for long periods after the sale of an aircraft, so it’s not rocket science to assume they will be early adopters of 3D printing solutions for spare-part management.” Titomic has invested heavily in developing additive manufacturing to progress towards a well-defined design, material and process qualification system as required by the US Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA). Europe’s Airbus is the world’s largest aircraft maker, delivering a record 863 aircraft in 2019.
INDUSTRY NEWS
Avalon 2021 deferred to November 2021 The organisers of the Australian International Airshow and Aerospace & Defence Exposition (Avalon 2021) have announced the postponement of next year’s event. AMDA Foundation Limited has been monitoring the evolving situation throughout the COVID-19 pandemic and its potential effects on Avalon 2021. In a statement AMDA said that, after extensive consultation and review, it had become clear that the impacts of COVID-19, including lengthy logistical lead times and uncertainty about availability of international travel, would pose unacceptable risks to Avalon 2021, should it continue with its original February dates.
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As a result, Avalon 2021, originally scheduled for 23-28 February, will be deferred to later in 2021, with timings in November being considered. Precise dates will be announced shortly. Avalon 2021 will have a uniquely central role to play in the celebration of the Centenary of the Royal Australian Air Force (RAAF). AMDA CEO Ian Honnery said: “As the centrepiece of the RAAF’s Centenary celebrations, Avalon 2021 will have great national and international significance. Deferring Avalon 2021 to November will ensure the event serves its purpose as a powerful promotional and industry engagement forum on the way to business recovery, and as a spectacular celebration of 100 years of the RAAF.” Strongly supported by the RAAF, the biennial Australian International Airshow and Aerospace & Defence Exposition is Australia’s own signature international aviation, aerospace and defence event. Organised by AMDA, it is a premium international platform for engagement between industry, defence, government and academia, and is universally regarded as one of the world’s great air shows. Honnery added: “Thank you for your patience as we work through these changes and we look forward to a November 2021 Avalon, where a century of distinguished service by the RAAF will be the theme, and the focus for the world’s aviation, aerospace and defence industries will be on promoting business for the future.”
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INDUSTRY NEWS
Queensland declared WEF Advanced Manufacturing Hub Queensland has been recognised as a global Advanced Manufacturing Hub by the World Economic Forum (WEF), a designation that will connect the state’s manufacturing sector with a global network of advanced manufacturers. The WEF is an internationally recognised organisation focused on improving the world’s business sector and shaping manufacturing globally. The 19 April announcement comes after WEF officials toured the state late last year, visiting manufacturing businesses and attending industry roundtables in Brisbane, Townsville, Cairns and Toowoomba.
The WEF partnership also opens up key networks for Queensland manufacturers, including the forum’s Global Lighthouse Network. This community of world-leading manufacturers, including Siemens, Bosch, Hitachi and GE Healthcare, have successfully transformed their global operations through the introduction of advanced technologies.
Cameron Dick, the then Minister for Manufacturing, said Queensland is rightly being acknowledged as a world-leader when it comes to the changing face of technology on the factory floor: “Being confirmed a WEF Advanced Manufacturing Hub is a badge of honour that will open more doors internationally and generate more business for Queensland. This designation recognises our state’s manufacturing ingenuity and the global potential of our $20bn sector and the businesses that make it.
Innovation Minister Kate Jones said manufacturing was the sixth-largest employer in Queensland, supporting more than 165,000 people: “We’re investing in advanced manufacturing to create thousands more jobs for Queenslanders and to boost our economy. We have a detailed strategy to invest in industries that have the best potential to create jobs in regional Queensland – advanced manufacturing is a big part of that vision. This is great recognition for our state – and shows that we’re a world leader in this space.”
“In partnership with WEF, we’ll look to bring together industry, universities and TAFE, government, and other key stakeholders for a series of regional roundtables, once social distancing restrictions are lifted. These will generate new paths of action for Queensland to accelerate the transformation of local manufacturing to advanced manufacturing.” “It’s our identity as manufacturing innovators that’s being recognised by WEF, a fact we should be incredibly proud of as a state. Being part of the WEF network will strengthen our government’s work in transitioning more of our manufacturing firms to advanced manufacturing through the adoption of Industry 4.0 technologies and practices.”
Francisco Betti, the head of WEF’s Platform for Shaping the Future of Advanced Manufacturing and Production, said Queensland joins an international network of Advanced Manufacturing Hubs that includes France, Italy and the US. “Now is a critical moment to showcase Queensland’s innovative and collaborative spirit on a global stage,” Betti said. “This will also prove an opportunity to help regional manufacturers become more competitive through advanced manufacturing technologies and business models.”
COVID-19 inspires TXM to create TV channel Lean operations consultancy TXM Lean Solutions has responded to the lockdown imposed by the COVID-19 pandemic by establishing its own TV channel. TXM TV brings Lean and manufacturing best practice to laptop screens through interactive and international panel discussions, involving TXM consultants, customers and guests. The new channel has enabled TXM to reach out and share its collective knowledge on how to incorporate and apply Lean practices remotely to the workplace. “TXM Television was born out of responding to the challenging times we’re in right now,” said Anthony Clyne, TXM Director and creator of the new channel, as he prepared for the channel’s daily 12.30pm segment from his home office. Tim McLean, TXM Director, added: “It has provided us a communal learning platform without borders. It has been really rewarding to learn new strategies, new skills and share resources with all of our viewers. While we cannot engage with many customers face to face, many are still running their businesses and we felt we needed to reach out and keep sharing ideas. In the process we have learned a huge amount about sharing and coaching online that we can leverage beyond this crisis.” Inspired by their Australian and New Zealand colleagues, the TXM UK and Europe team has joined in and are regularly producing their own TXM TV episodes. Topics have evolved from early tips for working from home, to dealing with supply chain issues; Lean reading; making your video calls more engaging; managing teams through dashboards; evaluating Kanban systems; how to apply
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TXM Director Anthony Clyne hosting TXM TV.
workplace distancing when working in teams; stories from Lean mentors; how to restart on-site work; and change management while adopting new behaviours. “It has kept us motivated and connected to each other even though we are so far away from our international as well as our local consultants” said Ron Spiteri, TXM Managing Director. “TXM Television has given us a daily focus and a great boost. It has been a winner for all during this global pandemic.” www.txm.com/txm-television
INDUSTRY NEWS
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Professor Fox started her Swinburne journey in 2015, initially taking on the role of Director of its Factory of the Future facility. In 2016, she was appointed as the Director of the Manufacturing Futures Research Institute, and most recently, she has been acting as Deputy Vice-Chancellor (Research & Enterprise) since the beginning of February.
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“I thank Bronwyn for the excellent contributions she has already made to Swinburne, and welcome her ambition, passion and expertise in this new role,” says Swinburne’s Vice-Chancellor, Professor Linda Kristjanson AO. “I have no doubt Bronwyn will take this strategy to the next level, evolving our already unique research innovation ecosystem to deliver on Swinburne’s next chapter of research.”
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Professor Fox will drive the university’s global research and innovation strategy, focusing on initiatives that will shape our future, drive innovation and create social and economic impact.
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Following an extensive international search, Swinburne University has appointed Professor Bronwyn Fox as its new Deputy Vice-Chancellor (Research & Enterprise).
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Swinburne appoints Bronwyn Fox as Deputy Vice-Chancellor (Research & Enterprise)
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Professor Fox has been instrumental in positioning Swinburne at the forefront of manufacturing, building extensively on the university’s Industry 4.0 initiatives and capabilities. She has led a number of significant initiatives and research partnerships through the Manufacturing Futures Research Institute, including: • World-first technology focused on space age materials to revolutionise the aerospace industry. • Establishing the world’s first operational Industry 4.0 Testlab for carbon composite manufacturing. • Collaborating with ARENA 2036, a flexible factory of the future on the University of Stuttgart’s Baden-Wuerttemberg campus.
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• Leading the development, innovation and commercialisation of graphene, as part of the Graphene Supply Chain CRC-P. Professor Bronwyn Fox spoke at the 2019 Victorian Chamber of Commerce and Industry 'ignite' event about the world-first technology Swinburne is developing with industry, focused on space age materials using 3D printing and digitalisation. As an internationally recognised expert on carbon fibre and composite materials, Professor Fox is Chair of the Australian Academy of Technology and Engineering (Victorian Division). She is a Fellow of the Academy of Technological Sciences and Engineering, a Fellow of the Royal Australian Chemical Institute and a Graduate of the Australian Institute of Company Directors. In 2018 Professor Fox was awarded the GCMM Research Leadership Award at the 14th Global Congress on Manufacturing and Management.
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GOVERNMENT NEWS
Businesses urged to set up myGovID to claim government assistance payments The Australian Taxation Office (ATO) is reminding businesses using the ATO’s Business Portal for the first time that they will need to set up a myGovID if they don’t already have one. Through the Business Portal you can apply for certain government assistance programs, lodge activity statements and pay super guarantee through the Small Business Superannuation Clearing House (SBSCH). The ATO’s Chief Digital Officer John Dardo says the ATO is here to help those needing to set up a myGovID quickly. “If you need to use the ATO Business Portal and you don’t have a myGovID yet don’t worry,” said Dardo. “Just download the myGovID app and follow the steps. Over 80% of people can set it up without any assistance. If you get stuck, we have instructions and videos on the web and our call centres are able to help.” myGovID is an app you download to your smart device to prove who you are online. It uses the security features in your device such as fingerprint or face recognition and passwords to protect your identity and stop others accessing your information. After downloading the app and setting up your myGovID, you need to link your myGovID to your business using Relationship Authorisation Manager (RAM). Together, myGovID and RAM provide a flexible, easy and secure way to access the ATO’s Business Portal. “myGovID is associated with an individual rather than a computer, making it flexible and portable,” Dardo added. “This means you can continue to access the Business Portal when you’re working from home. All you need is a compatible smart device and a browser with internet access.”
What you need to do to set up your myGovID • Step 1: Set up your myGovID. Download the myGovID app from the App Store or Google Play and use your Australian identity documents (two of the following: driver’s licence, Medicare card, birth certificate, passport) to enrol. • Step 2: Log in to RAM (https://info.authorisationmanager.gov. au) using your myGovID and link your business. • Step 3 (optional): Authorise your employees and others in RAM to act on behalf of your business online. They will receive an email to accept the authorisation request using their myGovID. When you’ve completed these steps you’ll be able to use your myGovID to log in to the Business Portal. Find out more about myGovID at: www.ato.gov.au/mygovid
Export Hub grants help businesses through crisis The Federal Government has announced measures to help small and medium-sized Australian businesses tap into new markets around the world, with support for a series of export hubs across the nation. Ten export hubs from five states will receive more than $4.9m under the SME Export Hubs Initiative and include industries where Australia has large growth potential including food and agribusiness, energy, advanced manufacturing and mining services. Minister for Industry, Science and Technology Karen Andrews said the grants would help SMEs to harness opportunities in international markets, which will be an important part of helping them bounce back and create jobs after the coronavirus pandemic. “These grants will help get businesses back on the front foot after the disruption caused by this unprecedented pandemic,” Minister Andrews said. “I’m confident demand for Australian goods and services will be even stronger when we come out the other side of this pandemic, and the Government is committed to helping businesses develop export opportunities and connections. “These export hubs help SMEs take advantage of opportunities around the world, which will drive economic growth here at home and create new Australian jobs. We want to put Australia in the best position possible so we can thrive after this pandemic is finished.” Minister for Trade, Tourism and Investment Simon Birmingham welcomed the funding boost to help Australian SME exporters get moving again. “We recognise the current COVID-19 crisis has placed immense pressure on our exporters and in many cases has hindered their ability to enter new markets or reach their existing overseas customers,” Minister Birmingham said. “This funding boost will help our SME exporters get more exposure in international markets allowing them to establish supply-chains as well as form new
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relationships with potential customers, that we know is so critical to export success. “Getting our exporters back on track will be crucial to reducing job losses throughout this crisis and a critical part of the ultimate economic recovery.” The SME Export Hub Initiative provides each successful hub with matched funding of up to $1.5m for projects up to two years in length. Export hubs can operate in six key industry sectors: advanced manufacturing; cyber security; food and agribusiness; medical technologies and pharmaceuticals; mining equipment, technology and services; and oil, gas and energy resources. For more information on the SME Export Hubs Initiative, visit: www.business.gov.au/SMEEH
Every business has different needs. Business Management To run a successful business, it’s not enough to have a great product or service. You need to understand your challenges and continually identify and leverage growth opportunities. The Entrepreneurs’ Programme (EP) is a Commonwealth Government flagship initiative focused on raising the competitiveness and productivity of eligible companies at an individual level. The Business Management element of EP will provide practical support to help your businesses improve and grow through sustainable management strategies and process capability enhancement. EP’s Business Management element offers: •
On-site support from a highly credentialed industry specialist adviser or facilitator.
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Funding through matched grants of up to $20,000.
•
Access to business networks, government services, and specialist assistance.
To find out what the Entrepreneurs’ Programme can do for you, contact Greg Chalker 03 9800 3666 or email gchalker@amtil.com.au
www.amtil.com.au Commonwealth Government Entrepreneurs’ Programme partnering with AMTIL
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Vineet Ahuja (BSc Eng, MBA, PG Dip QM, TAE40110) Entrepreneurs’ Programme Business Adviser
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Coronavirus lessons from past crises: How two World Wars spurred innovation in Australia In the wake of COVID-19, we’re seeing intense international competition for urgently-needed supplies including personal protection equipment (PPE) and ventilators. In Australia, this could extend to other critical imports such as pharmaceuticals and medicines. When our manufacturing sector can’t fill unexpected breaks in supply chains, we all face risk. However, we have lived through crises of comparable magnitude before. By Tom Spurling and Garrett Upstill. Some may assume life will go back to normal once COVID-19 withdraws. But if the past is to be learnt from, Australia should prepare for a greatly different future – hopefully one in which science and innovation once more take centre stage.
The birth of the CSIR It was World War One that heightened awareness of the role of science in defence and economic growth. In December 1915, Prime Minister William (Billy) Hughes announced he would set up a national laboratory “which would allow men of all branches of science to use their capabilities in application to industry”. This led to the formation of the CSIR in 1926, and its rebirth as the CSIRO in 1949. In the years after World War One, the CSIR contributed greatly to improvements in primary production, including through animal nutrition, disease prevention, and the control of weeds and pests in crops. It also advanced primary product processing and overseas product transport. In 1937, the CSIR’s mandate was expanded to include secondary industry research, including a national Aircraft and Engine Testing and Research Laboratory. This was motivated by the Government’s concern to increase Australia’s manufacturing capabilities and reduce its dependence on technology imports.
War efforts in the spotlight The CSIR’s research focus shifted in 1941 with the attack on Pearl Harbour. Australian war historian Boris Schedvin has written about the hectic scramble to increase the nation’s defence capacities and expand essential production following the attack, including expansion of the scientific workforce. The John Curtin Government was commissioned in October 1941. Curtin appointed John Dedman as the Minister for War Organisation & Industry, as well as the minister in charge of the CSIR. Dedman’s department was concerned with producing military supplies and equipment, and other items to support society in wartime.
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Dedman instructed the council to concentrate on “problems connected with the war effort”. The CSIR responded robustly. By 1942, the divisions of food preservation & transport, forest products, aeronautics, industrial chemistry, the national standards laboratory and the lubricants and bearings section were practically focused on war work full-time.
Scaling up production The Division of Industrial Chemistry was the division most closely involved in actual production. It was formed in 1940 with Ian Wark as chief, who’d previously worked at the Electrolytic Zinc Company. Wark was familiar with the chemical industry, and quickly devoted resources to developing processes (using Australian materials) to produce essential chemicals to the pilot plant stage. They were soon producing chemicals for drugs at the Fishermans Bend site in Melbourne, including the starting material for the synthesis of the anaesthetic drug novocaine (procaine). The researchers developed a method to separate the drug ergot, which is now essential in gynaecology, from rye. They also contributed directly to the war effort by manufacturing the plasticiser used in the nose caps of bullets and shells.
CSIRO today In response to the current pandemic, CSIRO at the Australian Centre for Disease Preparedness in Geelong, Victoria, is working with the international Coalition for Epidemic Preparedness to improve understanding of the SARS-CoV-2 virus. They are currently testing two vaccine candidates for efficacy, and evaluating the best way to administer the vaccine. Australian scientists have made monumental contributions on this front in the past. In the 1980s, CSIRO and its university collaborators began efforts that
led to the creation of anti-flu drug Relenza, the first drug to successfully treat the flu. Relenza was then commercialised by Australian biotech company Biota, which licensed the drug to British pharmaceutical company GlaxoSmithKline. The CSIRO also invented the Hendra virus vaccine for horses, launched in 2012. Prior to that, Ian Frazer at the University of Queensland developed the human papillomavirus (HPV) vaccine which was launched in 2006.
What can we take away? COVID-19 is one of many viral diseases that need either a vaccine or a drug (or both). Others are hepatitis B, dengue fever, HIV and the viruses that cause the common cold. Now may be Australia’s chance to use our world-class medical research and medicinal chemistry capabilities to become a dominant world supplier of anti-viral medications. As was the case during World War One and World War Two, this pandemic drives home the need to retain our capabilities at a time of supply chain disruption. While it’s impossible for a medium-sized economy like Australia’s to be entirely self-sufficient, it’s important we lean on our strengths to not only respond, but thrive during these complicated times. In 2020, Australia has a much greater and broader research and production capacity than it did in 1940. And as we march through this pandemic, we can learn from the past and forge new paths to enhance our position as pioneers in sciencific innovation. Tom Spurling is a Professor of Innovation Studies at Swinburne University of Technology. Garrett Upstill is a Visiting Fellow at Swinburne. This article was originally published by The Conversation. www.theconversation.com www.swinburne.edu.au
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If innovation requires a crisis – is there a bigger issue? Most people would say that innovation is important for business survival and growth. Any CEO would agree with that, but how many CEOs actually take the message seriously enough to act and actually implement innovation and moreover, demand outcomes? By Roger La Salle. Profit, of course, is a most simple metric for business outcomes - indeed the very reason the business exists. There is a simple metric for managing growth and increased staff numbers: Profit divided by Headcount (P/H). A new hire initially costs money, so expect a short-term dip in the P/H result, but in the longer term this number should in fact be bigger than the pre-hire number. If that’s not the case, then the new person is in fact costing you money. This, of course, disregards any lifestyle choice you may make in sacrificing a higher P/H to enable yourself more leisure time. A laudable choice, of course. In larger organisations, we often see headcount grow for no good reason. In good times new people are hired with scant regard for the return on the investment they deliver. This is even more prevalent in Government, where a simple profit metric may not be a relevant metric and outcomes can be hard to quantify. Even in smaller organisations, people are sometimes added with no real metric to determine the value they deliver.
What about innovation? Many companies have dedicated innovation departments and spend large amounts of money trying to embrace innovation. Lots of training is undertaken, special tee-shirts handed out, coloured banners, slogans and special thinking spaces created, some even with coloured bean bags to sit on. The now fashionable co-working spaces with their multi-coloured and funky fitouts have taken this to an entirely new level. This is all considered part of the innovation message, where passions run high and enthusiasm abounds. It’s hard to criticise such initiatives, but what often happens, much like the old-fashioned staff suggestions schemes, is that in time innovation becomes a bit passé. In short the push for innovation wanes. Gone is the wild enthusiasm as people become accustomed to the message – innovation has just become a bit of “business as usual”. Indeed in many cases innovation departments remain, but if you look closely you will no doubt find they have morphed into the “special projects”
department, for tasks that may be a bit outside the normal run of business. These tasks now fill the time of the innovators. No longer are they working on innovation, the initiative is dead but the salaries and overheads remain? When was the last time your innovation people delivered on your investment? Perhaps more to the point, do you have a metric? Perhaps the P/H metric alone may be sufficient. What would be the effect of dispensing with your innovation department if it’s not delivering real innovations?
Do we need a crisis to make it happen? At the commencement of any workshop we conduct, the first question we ask is: “Can you force people to be innovative?” The answer we get is always the same: “NO!” We then ask, putting aside the innovations enabled by the IT and internet revolution, what period in history was the greatest for innovation? The answer we get is always the same, during the Second World War. The Second World War produced some astonishing breakthroughs with radar, sonar, advancement in aircraft development thought impossible, and of course – like it or not – the atomic bomb. A technology delivered in less than four years based on a single equation that many sceptics even doubted. In those times it truly was a case of “Innovate or Perish”. In the light of this we may well ask, why it should be any different with the innovation in your business?
The present coronavirus is a classic example of necessity inspiring invention. New initiatives for survival and growth are popping up at every turn. Look at the growth in food deliveries, a service that is sure to stay. Shops that have now discovered they can do just as much business online with fewer staff and overheads than the old model of a high street shop. Look at the IT-enabled home offices, now sure to become a thing of the future. Bosses have realised they can gain more effective outcomes with people avoiding the drudgery of peak-hour travel. Look too at the reduced office space and attendant overheads enabled by remote working. As for travel, we have seen air travel disappear, with people managing via remote video meetings, and travel costs for companies almost completely gone. Doubtless there are times when personal visits are important, but what we are seeing is that there are alternatives to what we considered normal; and many of these are here to stay. If your innovation initiative is awaiting a crisis to spring to life, it may be time to question your approach. Indeed perhaps you need to innovate your approach to innovation, because done properly innovation is not hard; and yes, you can and should demand outcomes. Roger La Salle is the Director of La Salle Matrix Thinking. www.innovationtraining.com.au
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Weak mobile security is leaving manufacturers exposed Mobile apps and devices have become prominent ways to access information across many industries. Manufacturing is no exception. Ashish Thapar explains that while digital transformation has helped manufacturers streamline production, monitor equipment and improve safety, it has also left their information assets more vulnerable to cyber threats. Despite widespread awareness, the manufacturing industry is failing to fully address and manage mobile security risks, leading to a spike in reported breaches. In fact, according to Verizon’s datadriven Mobile Security Index 2020, 41% of manufacturers admitted to mobile device related breaches in the past year, almost double the 21% reporting these breaches in 2019. A large majority of these breaches are serious, with more than twothirds (67%) reporting a major mobile security compromise.
The IP paradox One of the biggest concerns raised in the report is competitors stealing their intellectual property (IP), cited by 87% of manufacturers, yet half of all manufacturers admit to sacrificing mobile security to get the job done. This creates a paradox for IP, where reality doesn’t quite match the very real fears around IP theft while simultaneously disregarding those threats. Clearly, manufacturers are displaying a disconnect between challenges and solutions. Mobile isn’t going anywhere. It has rapidly become an intrinsic part of manufacturing operations, so much greater emphasis needs to be placed on tightening mobile security, because the consequences of a breach can wreak serious long-term consequences.
Know your IT infrastructure to control it One of the key issues highlighted in the report is the chronic lack of awareness by most manufacturers over how many mobile apps are being used within their organisation. Most organisations are seriously underestimating the number being used, with 38% of those estimating that under 100 are in use, when the true average is around the 1,300 mark. This speaks to the wider problem of a lack of control over what is flowing through their IT infrastructure. Well-known problems like malware and ransomware remain major threats, but emerging ones like cryptojacking can also put your organisation at risk. Even apps downloaded from official stores can be compromised. One of the most effective ways to trick users into installing malware is to disguise it as a useful or entertaining app. In our report, of the organisations that were compromised, 21% said that a rogue or unapproved application had contributed to the incident. Of course, sideloading apps from non-official stores or third-party websites increases the risk. This is a distinct security blind spot for any organisation, but it can be fixed by implementing a few sensible controls over mobile device app usage. Firstly, establish a formal Acceptable Use Policy. This should clearly set out what apps are permissible for Bring Your Own Device users to use on the company network. Using a Mobile Device Management solution also helps to simplify security patch updates to devices accessing the network. Furthermore, manufacturers should ensure employees are educated when it comes to the basics of information security, such as being aware of the risks of accessing public Wi-Fi and have a policy in
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place to lock down and isolate lost, stolen, or infected devices, in order to contain the damage. Password policies are also needed to stipulate regular password changes, outlaw the reusing of passwords, and mandate the use of sufficiently strong options so that they won’t be guessed and enforcing IT administrators to change default and vendorsupplied passwords. Use two-factor authentication, with special emphasis on any external-facing interfaces and high-risk environments, for example remote access, privileged access, and access to sensitive data. Cyber resiliency demands that organisations have a proven response plan for a wide array of incidents that can disrupt operations and imperil sensitive data. And the best response plans are powered by threat intelligence tailored to an organisation's specific risk profile. Verizon’s Advanced Security Operations Centre in Canberra was established to help its customers stay one step ahead of their adversaries by providing real time threat reporting and analysis, but enterprises also need to reduce their vulnerability to attack, and critically, put an end to the practice of sacrificing security for convenience. The statistics don’t lie – manufacturers that admitted to sacrificing mobile security were almost twice (1.9 times) as likely to have suffered a breach.
A new perspective Security has been viewed in the past as a barrier to change, but it should now be the primary focus for any organisation, as without it, manufacturers are exposing their entire operations and IP to theft or destruction. Industries such as manufacturing and construction also carry the additional risk of a mobile security breach potentially putting the safety of workers in jeopardy. Consequently, those organisations need to take mobile security even more seriously. Mobile applications are enabling manufacturers to innovate in ways that previously would’ve seemed unimaginable, so we absolutely must encourage the use of those applications that bring great benefit to workflows, processes, and deliver better client outcomes, whilst preventing network access to those apps that offer none of those things. Lack of user awareness is one thing, but manufacturers can and should impose rules around the use of apps, devices, networks and cloud services that gives those employees much less leeway to cause a problem for the business through their actions, whether intended or otherwise. It may seem rather punitive, but if restricting the use of a few apps on the corporate network saves the business from potential multimillion-dollar losses from a breach, surely, it’s a small price to pay. Ashish Thapar is the Managing Principal for Asia Pacific at Verizon’s Threat Research Advisory Centre (VTRAC). www.verizon.com
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The COVID-19 effect: Australian manufacturers must move to digital What does the COVID-19 pandemic mean for manufacturing in this country? The crisis is changing every aspect of how Australian manufacturers buy, sell, and engage with customers, distributors and dealers, writes Richard Blatcher. Even before the COVID-19 crisis, Australian manufacturing had suffered many years of decline. The pandemic has already had the effect of increasing production locally, particularly personal protective equipment (PPE), medicines and medical devices. It’s impossible to know exactly what the long-term effects will be, though there are plans emerging for stronger exports, with food and renewable energy leading the way. With COVID-19 and the recent oil-price volatility, manufacturers have been among the most affected. The simple human cost of COVID-19 is already being measured in lives changed, economies and supply chains disrupted, plants and factories closed, futures made uncertain, and loved ones lost. Every manufacturer in Australia is facing the startling fact that their business plans for 2020 and beyond are now worse than outdated; they are irrelevant. Choosing to follow the current plan could be detrimental to the success, or even the survival of the business. The truth is, the way manufacturers buy, sell, and engage with customers, distributors, and dealers has suddenly changed. Planning for the impact of that change is consuming manufacturers — especially when the situation and even the data changes hourly. It is becoming clear that change will continue; between tariffs, global supply chain disruptions, weather events, oil prices, supply and demand bottlenecks, and now global pandemics, manufacturers have had to navigate through endless change that will only continue. What does this mean for the Australian manufacturing industry as we know it? There will be three phases to the impact:
Short-term: survival Every segment within manufacturing has been impacted, but in different ways. While the food & beverage, chemical products, primary metals, and even electrical product manufacturing industries saw some recent growth, many, such as machinery manufacturers, experienced contraction. When faced with the rapidly changing impact of the pandemic, a strong control of pricing and agility of price strategy needs to be top of mind. Even those segments of manufacturing that are seeing spikes in demand must now manage through an explosive change in their business and respond appropriately to avoid price gauging. For every manufacturer, price and margin optimisation, in close partnership with dealers and distributors, are key to optimal commercial response. The focus should be on tight control of pricing and agility in price strategy aligning with business rules. Others might be tempted to cut prices as a reaction to dramatic drops in demand; however, acting without understanding what’s driving demand in your market could erode future price points without growing sales. Simply put, reducing prices may not spur demand that isn’t there. Alternatively, in some businesses, competitors may be dropping prices as a result of changing demand or reduction in material costs, and failure to act could also negatively impact your business. In the short term, the best strategy manufacturers can employ is to start with responsibly protecting prices and margins through agile, dynamic management, and to do so based on an understanding of the market signals: shifting customer needs, volatile supply chains and commodity costs, and strong pricing discipline throughout the business.
Mid-term: re-alignment Manufacturers around the globe are at different stages of dealing with the pandemic, with the majority of plants across America and Europe closed, plants are rapidly reopening across Asia. As manufacturers respond to market changes and move through the initial phase of establishing agile price management processes, they will then have to realign their sales process to meet these new market conditions. Inevitably, for many businesses, that results in equipping a traditional sales force to sell more through digital channels. This means sales teams must be enabled to respond in a more agile way to customer demands and potential new competitors, all while operating remotely. They must be equipped with insight and tools to respond immediately and accurately to customer requests. Pricing, commercial terms, and configuration information must be fed to sales teams in real time, as conditions change so they can deliver personalised, accurate quotes quickly and easily. Failure to do so will leave remote sales teams with out-of-date pricing and configuration information, and an inability to respond to more agile competitors meeting the rapidly changing needs of digital buyers.
Long-term: optimisation As manufacturers move through this next year, they will begin to optimise their operations to conform to the new normal of a digitalcommerce-first business. This means that digital transformation projects must focus on sales process transformation. Not doing so will divert critical resources away from customer-facing and customer-enabling projects, wasting time that equates directly to lost market share. Simply put, businesses are already moving online and the changes in buyer behaviour as a result of the COVID-19 outbreak has accelerated this drastically. The mantra is simple: optimise online or lose business to those that do. Manufacturers must align their sales, dealer and distribution channels more effectively. Buyers should be able to fluidly move between in-person, e-commerce, and other digital channels to feel as though the experience is connected and consistent including pricing, ordering, configuring, and buying experiences. Ultimately, whatever changes arise from the COVID-19 outbreak, Australian manufacturers can, and must, embrace the opportunity to move to digital commerce, both to react appropriately to the current state of global commerce, and be ready for the future state. Richard Blatcher is the Director of Industry Marketing and Business Intelligence at PROS www.pros.com
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TECH NEWS
USA: First liquid metal lattice – Invoking Terminator 2
Australia: Australian-made smart unmanned aircraft
A new liquid-metal lattice material has been developed to create models that regain their shape after being crushed. It has been likened to the liquid metals in Terminator 2 – but much friendlier! Developed from Field’s alloy (a mix of bismuth, indium and tin), it becomes liquid at the low melting point of 62°C. The lattice material was combined with a rubber shell through a hybrid manufacturing process integrating 3D printing, vacuum casting and conformal coating. The shell controls the overall shape and integrity, so the liquid metal can be confined in the channels. When the liquid metal is in a solid state, it is very safe and strong and absorbs a lot of energy when crushed; then, after some heating and cooling, it returns to its original shape and can be reused, inspiring many uses including structures for space orbit which could be expanded when the destination is reached.
Boeing has unveiled the first of three prototypes in its unmanned ‘Loyal Wingman’ program – the first military aircraft to be designed, engineered and manufactured in Australia in more than 50 years. The 11.5-metre, autonomous/AI device will move onto ground testing, followed by test flights later this year. The ground-breaking prototype is not a remotely controlled drone, but instead uses AI to help both manned and unmanned aircraft in mid-air. Globally, it will be known as the Boeing Airpower Teaming System (BATS). It was manufactured with Boeing’s largest-ever resin-infused single composite piece and comes less than a week after Boeing Australia began redundancy processes across its Australian and NZ operations. The development of the prototype was backed by a $40m investment from the Fed.Govt. and represents Boeing’s largest investment in an unmanned aircraft outside of the US.
Binghamton University
Australian Aviation/IT News
USA: Army tech – Turning lowcost printers into high-tech
Austria: LED instead of laser for 3D metal printing A technology using high-performance LED instead of laser sources for the AM of metal parts is optimising 3D metal printing in terms of construction time, metal powder consumption, equipment costs and post-processing effort. The name of the new technology is Selective LED-based melting (SLEDM). The technology is similar to SLM and electron beam melting (EBM). However, SLEDM solves two central problems: the time-consuming production of largevolume metal components and manual post-processing times. The LEDs were specially adapted and equipped with a complex lens system by which the diameter of the LED focus can be easily changed between 0.05 and 20mm during the melting process. This enables the melting of larger volumes per unit of time without having to dispense with filigree internal structures, reducing the production time of components by an average factor of 20. Graz University of Technology
Parts produced with common desktop 3D printers historically have had poor strength and toughness, preventing affordable printers being used to resupply military parts on demand. But now a new type of multi-polymer filament (replacing fused filament fabrication or FFF) has been produced, potentially allowing soldiers to use low-cost printers to create parts that, once subjected to a few hours of heat, can achieve mechanical properties robust enough to withstand the rigors of field operations. The research team used a novel thermal draw process to fabricate a dual material filament comprising ABS with a polycarbonate core. This dual material filament is then used as feedstock in a conventional FFF printer. This is allowing low‐cost printers to produce parts with mechanical properties competitive with injection‐moulded plastics. US Army Research Laboratory
USA: 3D-Printing extremely hard steels flawlessly 3D printing martensitic steels using lasers can introduce unintended defects in the form of pores within the material. Researchers have now developed guidelines that allow 3D printing of martensitic steels into very sturdy, defect-free objects of nearly any shape, and which can be used to build intricate objects from other metals and alloys as well. By combining experiments and modelling, the team was able to develop a simple, quick, step-by-step procedure that can be used to determine which setting would work best for 3D printing of martensitic steels, simplifyng it so that the final product is without porosities, which is an important development for all type of metal additive manufacturing industries that make parts as simple as screws to more complex ones like landing gears, gearboxes or turbines. Texas A&M University
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TECH HEADING NEWS
USA: New way to paint 3D-printed objects
USA: Groundbreaking new rocketpropulsion system
Conventional sprays and brushes can’t reach all nooks and crannies in complex 3D-printed objects, but a new technique coats any exposed surface and fosters rapid prototyping. It more efficiently coats not only conventional objects, but even hydrogel soft robots, and the coatings are robust enough to survive complete immersion in water and swelling/de-swelling by humidity. The technique builds upon a technology called electrospray deposition by building an accessory for 3D printers that will, for the first time, allow automated coating of 3D-printed parts with functional, protective or aesthetic layers of paint. The technique features much thinner and bettertargeted paint application, using significantly fewer materials than traditional methods. That means engineers can use cutting-edge materials, such as nanoparticles and bioactive ingredients, that would otherwise be too costly.
A new rocket-propulsion system once thought to be impossible has been developed. Known as a rotating detonation rocket engine, the system will allow lighter upper stage rockets, and to burn more cleanly and travel further – providing experimental evidence of a safe and functioning hydrogen and oxygen propellant detonation in a rotating detonation rocket engine. The rotating detonations are continuous, Mach 5 explosions that rotate around the inside of a rocket engine, and the explosions are sustained by feeding hydrogen and oxygen propellant into the system at just the right amounts. This system improves rocket-engine efficiency so that more power is generated while using less fuel than traditional rocket energies. The technology has been studied since the 1960s but has been unsuccessful due to the chemical propellants used or the ways they were mixed. These research results already are having repercussions, with several projects re-examining hydrogen detonation combustion within rotating detonation rocket engines because of these results.
Rutgers University A hydrogel lattice without (left) and with (right) coating.
University of Central Florida
USA: Building stronger body armour By adding a tiny amount of the element silicon to boron carbide, a material commonly used for making body armour, it was discovered that bullet-resistant gear could be made substantially more resilient to high-speed impacts. Despite boron carbide’s many qualities, its main shortfall is that it can damage very quickly upon high-velocity impact (above 900 metres per second) Above this critical speed, boron carbide (dubbed “black diamond”) suddenly loses its ballistic performance. High-speed jolts induce phase transformations in boron carbide. But the team found that even with tiny quantities of silicon, the extent of phase transformation went down by 30%, noticeably reducing the damage from the indentation. More experiments need to be done to determine if other elements, like lithium and aluminium, could also improve boron carbide’s performance. Texas A&M University
UK: Print your own lab-grade microscope for $28 For the first time, labs around the world can 3D print their own precision microscopes, thanks to an open-source design created at Bath University. The OpenFlexure Microscope, is a fully automated, easy to use, laboratory-grade instrument and is unique among 3D-printed microscope in its ability to yield high-quality images. A commercial microscope for lab use can sell for tens of thousands of pounds. This one can be constructed for as little as £15. To date, over 100 microscopes have been printed in Tanzania and Kenya, whose design has been modified to better suit their local market, demonstrating another key strength of open source hardware. There has been a surge of interest in 3D printers since the onset of the pandemic, with many projects around the world developing lowcost, open-source 3D ventilators – or ventilator parts – to address the global shortage. University of Bath
USA: More efficient, eco-friendly ethylene production A research team has engineered a new catalyst (redox catalyst) that can more efficiently convert ethane into ethylene and will cut CO2 emissions by up to 87%. It is estimated that more than 200 million barrels of ethane are rejected each year in the US due to the difficulty of transporting it from remote locations. With this catalyst and conversion technique, it would be more cost-effective to convert that ethane into ethylene. The ethylene could then be converted into liquid fuel, which is much easier to transport. The conversion process takes place at between 650-700°C. Current conversion techniques require temperatures higher than 800°C. Ethylene is used in a variety of manufacturing processes. North Caroline State University
“Our dream is to build a liquid metal lattice robot, and now we have a hand, so we’re one step further; just as long as it’s a friendly robot” - Assistant Professor Pu Zhang of the Thomas J. Watson School of Engineering & Applied Science, referencing Terminator 2 and his team’s research on liquid metals. Zhang developed what he calls “the first liquid metal lattice in the world”. New liquid metal lattice material - prototypes returned to their shapes when crushed. The most Terminator-like one is a hand that moved when heated to melting point, and slowly opened as the metal lattice melted.
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PRODUCT NEWS
Genox’s shredders boosted by asset write-off scheme For anyone contemplating acquiring a shredder or granulator, the increase in the value of the Government’s instant asset write-off scheme to $150,000 has certainly made the business case even more compelling. Waste reduction and recycling have become crucial in recent years, playing a key role in minimising landfill and driving growth in the number of new products manufactured with recycled material. With the dual benefits of reducing landfill and lowering waste disposal costs, many businesses are looking for reliable and costeffective solutions for waste reduction.
“Genox machines are already extremely affordable and the government’s latest stimulus package makes them even better value.” The increasing need for material reduction machines and the crucial role they play in the recycling process is evidenced by the diverse applications in which Applied Machinery customers have put their Genox machines to use.
Applied Machinery is the sole Australian distributor for Genox Recycling Technology’s extensive range of shredders and granulators, which are perfect for reprocessing waste material for direct input into closed loop manufacturing, secondary processing or simple volumetric savings in recycling skip bins. Genox is a combination of the words ‘Generating Oxygen’, which serves as the cornerstone of its efforts towards creating a better environment through new and innovative technology.
“We have customers who use a shredder to cut down bulky items such as pipes and large offcuts to allow them to be more easily packed for transport to recycling facilities,” said Fisher. “Many companies are also looking at Genox as a way of generating extra income from the waste reduction process. One of our customers purchased a Genox granulator to granulate fish waste from his restaurant so he could bag it and sell it as burley. This keeps this organic, odorous waste out of traditional landfill, whilst simultaneously generating extra income.
Genox’s range of shredders and granulators are suitable for all kinds of waste products. The Vision series comprises high-quality, costeffective shredders, while the Gran-Calibur series of granulators offers defined size reduction of various materials in a single pass.
“One of the key benefits of purchasing from Applied is that we always keep an extensive range of Genox machines in stock which in most cases means same-day purchase and delivery. This ensures our customers can take delivery quickly and put the machines to work immediately.” Applied also holds an extensive inventory of parts and accessories for quick routine maintenance, service and machine upgrades and add-ons, so customers are never kept waiting.
An extensive range of products can be size-reduced and then recycled including soft and rigid plastics, plastic film, general plastics, wood, metals, textiles, tyres, e-waste and more. More than 250 companies in Australia now have Genox equipment installed, making Genox one of Australia’s leading manufacturers of recycling machinery. “Whilst many customers are aware of our larger-scale recycling plants, our extensive range of shredders and granulators cater to just about every type of business, all budgets and practically all recycling applications,” said Applied Machinery’s Marketing and Project Manager, Daniel Fisher. “We have machines available in stock right now or on quick lead times, so customers can start reaping the benefits quickly.
“Unlike many other machinery suppliers, we don’t just sell machinery,” said Fisher. “We have specialist service engineers who install the machinery and, most critically, train our customers and their staff to use it efficiently and safely. Then we provide regular servicing and follow up. Now that nearly all companies in Australia can instantly write-off equipment up to the value of $150,000, there really is no better time to invest in one of our recycling machines. However, given the scheme ends 30 June, customers will need to act quickly.” www.appliedmachinery.com.au/recycling
Welders join up for Metal Manufacturing Safety Guide Of the many hazards present in the metal manufacturing industry, welders need to be especially aware and cautious when it comes to welding fumes and their effects on health, as well as how to best reduce exposure. In early 2017, the International Agency for Research on Cancer reclassified welding fumes as a Group 1 carcinogenic. The change was primarily associated with the effects of ultra-violet (UV) exposure on the skin and eyes, lung cancers and limited evidence for kidney cancer from welding fume exposures. Short- and long-term exposure to fumes impacts on a welder’s health negatively, causing eye, nose and throat irritation, lung infections, asthma, lung damage and various types of cancer. It is therefore important that welders understand the hazards of the materials they are working with and the scale of exposure. Workplace Health & Safety (WHS) regulations require employers to provide information and training for workers on exposure to hazardous materials in the workplace. In every workplace, health
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& safety holds the highest importance and workers and employers need to ensure it is being upheld every day. To assist, Pro-Visual Publishing in conjunction with the Australian Industry (Ai) Group and the National Safety Council of Australia (NSCA) Foundation have released the Metal Manufacturing Industry Guide to Safety 2020/21. The Guide is an eyecatching safety poster that provides further information relating to welding fumes as well as other critical safety issues in the metal manufacturing industry. The Guide also features augmented reality (AR) capabilities, allowing it to become digitally interactive. By downloading the free Pro-Vis AR app, workers can use their smart device to scan any AR capable content to access to web links and PDF files. www.provisual.com.au
PRODUCT NEWS
Sandvik Coromant launches optimised multi-material drill Sandvik Coromant has launched the latest addition to its CoroDrill 860 ange of drilling solutions, with an advanced – GM geometry that offers high-performance drilling across a wide range of materials and applications, as well as significantly improved tool life. The new launch stems from one of the most popular product ranges from Sandvik Coromant, the R840. Currently, the R840 is the largest selling drill in the company’s solid round tools offering. However, new advances in drilling technology, and customers’ needs to improve and better maintain their productivity, meant that it was time for an upgrade. The CoroDrill 860 with -GM geometry features a new grade, innovative flute design with a multi-layer physical vapour deposition (PVD) coating on the drill tip. The results are improved drilling capabilities across a range of materials and applications, including general engineering and automotive, and a much greater tool life than its predecessor, the R840. One of the most innovative qualities of the drill is its advanced geometry, with the double margin adding stability, increased core strength and reinforced corners all of which contribute to process security and finished hole quality. The flute is highly polished, which helps improve chip evacuation and reduces heat build-up during the drilling process. The advanced geometry of the CoroDrill 860-GM makes it ideal for use with a variety of materials – including steel, stainless steel, cast iron and hardened metals. It also performs competitively with non-ferrous metals, such as copper and aluminium, and heat-resistant super alloys. James Thorpe, global product manager at Sandvik Coromant, said: “Sandvik Coromant provides machining solutions for a multitude of industrial sectors. We are always improving our offering and understand that enhanced tool life and improved productivity are two of our customers’ major requirements. The CoroDrill 860 with -GM geometry is suitable for applications where hole quality is critical within the automotive, general machinery and oil and gas industries. “We wanted to offer an improved solution for a vast range of industrial applications, and also to streamline our product offering,” adds Thorpe. “We’ve achieved this with a single, multi-purpose drill that gives superior performance across a range of materials. As well as improved drilling quality for our customers, they can also reduce their tooling inventory and overall production costs, with greater machine flexibility and reduced set-up times. “With the new addition to the CoroDrill 860 family, we hope to target a greater variety of industrial sectors while continuing to offer even more possibilities to our existing customers.” www.sandvik.coromant.com
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PRODUCT NEWS
Fanquip: Draft plan for factories and assembly plants needing new air Hooded roof fans from air movement specialist Fanquip can vastly improve exhaust systems and fresh air supplies without any major adjustments to buildings operated by manufacturing and engineering companies – especially for ageing premises or buildings not well designed for the current purpose. These fans are manufactured in any of six common profile bases for fast and inexpensive installation, often made by in-house personnel. By strategically placing these Fanquip units, a controlled draft is achieved in factories and assembly plants where everyday heat, dust or non-toxic fumes such as those from welding, forging, drilling, dipping, painting, etc, require solutions. The profile base hooded roof fans provide excellent extraction of heat, steam, dust, stale air and fumes from various industrial environments. Manufactured in Australia to operate in demanding climatic conditions, Fanquip’s hooded roof fans feature a heavy-duty fibreglass base moulded to match popular roof profiles, which allows the fans to be installed without a fan base/upstand, greatly reducing installation time and cost. As Fanquip’s hooded roof fans are supplied in any of six standard profile bases (corrugated iron, Trimdek, Super Six, Spandek, Double Rib & Span 4, and Longspan), retrofitting is normally a straightforward procedure. Using a profile base, installation costs and time are cut by as much as 60% and the unit can be installed by customers quite easily. No upstand is needed, while bird mesh protection is provided. Should a roof profile not match any of the six profiles, a curb base is then
used to accommodate the situation. Operating a ‘downdraft’ discharge system allows the fast purging of dust-affected internal environments in controlled fashion, with complete protection of the fan opening from the weather. Being heavyduty, they can withstand the force of extreme weather conditions. Hooded roof fans are strategically placed at a significant distance from the major opening of a workshop, processing plant, warehouse, storage depot or other large complex so as to create an air flow drawn in through that main opening. What this achieves is an intake of fresh air through, say, a set of rolladoors, with bad air drawn by and expelled through the hooded roof fans. Normally heat or pungent odours are the reason for installation, but if dust is the cause of problems, this can also be extracted as easily as air or gases. Motor speeds range from 720rpm to 1440rpm, with voltages in either 1Ph 240V or 3Ph 415V. Options include flameproof motors, belt drive and IP56 motor. If preferred, the product can be supplied without fan and motor to act as an exhaust relief/air intake. Fanquip hooded roof fans are suitable for applications in factories, plant rooms, workshops, processing plants and machinery. www.fanquip.com.au
TierraTech – Fast, safe, ultrasonic cleaning One of the most challenging and critical issues in engine and plant reconditioning is to ensure that all components are thoroughly cleaned to allow checking of the various components and to ensure an optimal quality outcome. The new generation of ultrasonic cleaning machines replace caustic baths, spin-wash machines and pressure washes, which are costly to run and inefficient. Ultrasonic cleaning produces amazing results within a 20-minute cycle time, degreasing, decarbonising and descaling engine parts and components such as engine blocks, cylinder heads, particle filters, diesel injection, turbo chargers, gearboxes and transmission systems. TierraTech is a leading international company specialising in the manufacture of ultrasonic cleaning equipment and systems. Its range of quality-assured ultrasonic cleaning systems is promoted by Premier Machinery & Components, a leading engine reconditioning equipment supplier. The TierraTech Motor Clean range is specially designed for industry, with models to suit the smaller workshop up to the largest heavy commercial transport and mining operations. The equipment capabilities range from 30 litres to 8,000 litres; popular models include the 400 litre model for passenger cars, a 600-litre model suitable for most diesel engines, and the 1,000-litre model for large commercial engines and equipment. The equipment uses a working frequency of 40kHz (sweep system +2%), which is ideal for the industry as it achieves
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optimal cleaning without damaging any soft materials such as aluminium, magnesium or brass. Running costs for these machines can be as low as $1.40 per day operating a five-day week, with the 400-litre machine using 175kWh over a seven-day period. Operating times can be programmed, and it operates at 70 degrees Celsius, with the units holding their heat overnight. Ultrasonic waves osculate with a 15.25cm travel agitation to ensure all parts are completely cleaned. “These high-quality units clean regardless of the complexity of the pieces, especially internal recesses and hard to reach areas,” said Daniel Parker, General Manager of Premier Machinery & Components. “They reduce energy costs, are more environmentally friendly, and dramatically reduce labour time.” Using the right chemicals, heat and agitation produces spectacular results. It is important to use the specified chemicals, which at $375 per 25kg drum are inexpensive and last between six weeks to six months depending on usage. The systems are easy to operate via a 10.9cm touch screen that provides functional and intuitive access to ultrasonic time setting and peripheric or optional systems with a programmable weekly calendar. www.premiermachinery.com.au
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Mapal unveils newlook clamping line-up Mapal has unveiled a new unified design for its portfolio of clamping products, which ranges from the clamping cartridge to the application-specific hydraulic chuck. With a new corporate design, the complete clamping range can now be immediately identified as stemming from the Mapal stable. By redesigning product lines, the range will now have a uniform appearance and simultaneously offer added value for customers by utilising intelligent design strategies. Until now, industrial product design has played a less significant role during the development of chucks at Mapal with the focus primarily centering upon reliable functionality. As a result, the developers at Mapal have gradually built up a broad portfolio that did not have a uniform appearance. To evolve this situation, Mapal involved experts from an award-winning design agency in Schwaebisch Gmuend, Germany.
your
G AT E W AY to a SMARTER FUTURE
The remit was to revise the appearance of the chucks whilst adding value for the customer by means of carefully considered industrial design. Why? An ingenious design is not only a visual highlight, it also taps into economic and ecological benefits for both Mapal and its customer base. Using this as a starting point, the product designers worked in synergy with product developers at Mapal, building completely new concepts that are based on functional finite element method (FEM) analyses to improve performance, ergonomics and economy for end users. Developed according to this design brief, the new chucks shine with proverbial brilliance. One of the elements in the new concept is the brilliant surface finish. This surface finish is credit to a specially developed polishing method that ensures the chucks are more resistant to corrosion than previous versions.
26 TH INTERNATIONAL SHEET METAL WORKING TECHNOLOGY EXHIBITION
A further design requirement was ‘foolproof-handling’; creating something that creates easy and selfexplanatory handling of chucks. Operational elements were for customers to be able to quickly identify the chuck of choice with handling information also being self-explanatory. These requirements were addressed by the blue color of features such as the actuating screws on a hydraulic chuck and by internally developed symbols that contain corresponding information, irrespective of the related language. Finally, the product engineers and design engineers studied and optimised the chucks by undertaking a complete review of the weight, material selection and size. The new design addresses the requirements for the greatest possible stability and vibration dampening characteristics. Even the smallest weight savings on chucks have a major impact that becomes apparent over time. A lightweight chuck will consume less energy during acceleration and deceleration of the spindle. www.mapal.com
• Sheet metal, Tube, Sections • Handling • Forming • Finished products, Parts, Assemblies • Separation, Cutting • Joining, Welding • Flexible sheet metal working • Tube / Section working • Composites • Surface treatment • Tools, Dies • CAD / CAM / CIM systems / Data processing
2 7 – 3 0 O C TO B E R 2 0 2 0 H A N OV E R , G E R M A N Y www.euroblech.com
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PRODUCT NEWS
SYSPRO delivers improved usability, performance SYSPRO recently announced enhancements to its latest enterprise resource planning (ERP) software offering, which further extends its leadership within the manufacturing and distribution sectors. SYSPRO 8, the company’s latest ERP product, was first released in 2018, and new capabilities are added twice a year. The first release for 2020 offers new and existing customers superior security, governance and compliance, enhanced traceability, extended tools for development and greater tax support. These capabilities have been aimed at assisting manufacturers and distributors to securely automate and integrate their business processes to improve production, inventory control and reporting.
inventory allocation. The new release has focused on improving the management of the system, specifically in areas of security and governance. Password expiry and password strength validation has been enhanced along with the management of deposits – inclusive of an audit trail. The addition of online and offline receipt number allocation prevents duplication, while administrators now have greater control over various aspects of Supply Chain Transfer functionality.
As organisations continue to operate in a highly regulated environment, manufacturers have the need to recall a product on short notice. As a result, Product Recall has been expanded to allow any traceable parent item (Lot or Serial) that has been receipted into stock by any means, to be easily identified. In addition, it continues to provide the ability to regularly test the system through Mock Recalls. Benefits of this capability include the accelerated time to completion to product recalls, improved governance and the ability to meet regulatory reporting requirements.
As more countries transition towards electronic tax submissions, SYSPRO will include support for Making Tax Digital (MTD) and will include the nine-box return for the UK. This allows for the extraction of tax data electronically for improved electronic tax submissions. Additionally, there will be enhanced tracking and monitoring of tax receipts. In today’s highly regulated world, most companies operate in an environment where they must comply with one or more security and/or privacy regulations or government Acts. Additionally, with the increase of organisational deployment to the cloud, there has been a surge of concerns around security and the levels of encryption required. For this reason, SYSPRO now introduces SQL Encryption in Motion.
Improved transaction rights have been added to SYSPRO Manufacturing Operations Management (MOM), allowing the rights of the user to be limited by the administrator. Only approved users will be able to undertake shop floor transactions, while unauthorised users will only be able to view transactions – improving control and governance. The latest version also has additional customisable features. For example, MOM extends and enriches ERP systems by uniting the planning and production processes to help quickly and easily create flow, measure performance, connect machines and increase output and margins through the elimination of loss. This feature has extended language capabilities and now supports French, German, Portuguese, Spanish and Turkish. SYSPRO Point of Sale (PoS) enables manufacturers with a distribution operation as well as core distributors to automate their sales processes and transactions, including payments and
Data Encryption in Motion ensures that eavesdroppers and hackers can’t see what is transmitted. This is particularly useful for private and sensitive information, but also for all information sent between SYSPRO and SQL Servers. Avanti, SYSPRO’s web interface has also been updated to support multi-factor authentication. In addition to improved security features, Avanti will now include the Avanti Software Development Kit (SDK). With direct access to the entire SYSPRO Avanti API, the Avanti SDK provides developers with everything needed to enhance Avanti functionality according to your organisation’s requirements. The Bots Software Development Kit (SDK) allows developers to create their own Bot skillsets and functionality as well as connect their own applications to Ken the SYSPRO Bot. www.au.syspro.com
Walter – It’s all about smart heads With the G4014-P groove turning holder and the double-edged DX18 indexable inserts, Walter is launching a new system for grooving and parting off on the market. The screw of the innovative new SmartLock insert clamping is fitted on the side. This makes it possible to change inserts in the machine, even where space is limited, in particular on sliding head machines and multi-spindle machines. As a result, changing inserts is around 70% faster. The clamping forces are around 30% higher than those of standard tools, increasing the stability and enabling users to achieve a significantly longer tool life. The system can be converted from operation on the left to operation on the right, making it very flexible. The patent-pending positive engagement design of the insert seat also contributes to this. The cutting insert is centred in the seat with a prism. This prevents incorrect fitting, especially for narrow insert widths, and enables an extremely high level of indexing accuracy. The Walter grooving system consisting of G4014-P and DX18 inserts is initially available in the shank sizes of 10mm-20mm, with insert widths from 1.5mm-3mm and for parting off diameters of up to 35mm. It comes with either precision cooling on the rake and flank faces or without internal cooling.
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Its special features make the system the current benchmark in terms of the mass production of small parts like shafts, plug contacts, nozzles or implants. Typical applications include automotive suppliers, medical engineering as well as the electronics, foodstuff and watchmaking industries. www.walter-tools.com
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SPECIAL FEATURE
MANUFACTURING & COVID-19
The coronavirus (COVID-19) pandemic has had a profound impact across Australian society and the Australian economy – including for individuals and businesses in the manufacturing sector. AMT Magazine spoke to three manufacturing companies that have been affected by the pandemic in different ways, and have adapted their operations in different ways in response. By William Poole and Sarah Cayless. AXIOM PRECISION MANUFACTURING Wingfield, South Australia Craig Maynard, General Manager AMT: Firstly, tell us about Axiom Precision Manufacturing and what you’d been doing as a business prior to the coronavirus pandemic. Craig Maynard: Axiom Precision Manufacturing is a 40-yearold family-owned company. Before coronavirus we had mainly been doing defence, aerospace and some medical manufacturing; precision machining, assemblies and electronics integration as our focus. We spent 35 years in automotive manufacturing, in tooling and production. We did work for Toyota and Ford, and a little bit for Holden. But also tooling exports to the US, South America and South Africa. Now with precision machining we’re exporting both indirectly and directly with defence projects such as the F35 Joint Strike Fighter and the Silvershield program. Since automotive finished, we’ve experienced significant growth with defence and aerospace over the last few years, growing from 40 to 70 staff. AMT: How has coronovirus affected the business? CM: With coronavirus, we saw a little bit of a change. With defence, we’re still pushing full steam ahead. They didn’t want to slow that down. We saw a few changes in how the business was run. We split up teams so that if a member of the team got sick, it didn’t mean the whole team got sick. We did that through working from home and also working at our other site. But as far as the workload goes, we didn’t see much change in that. It actually increased just through the interest in medical items such as personal protective equipment (PPE).
Samples of the personal protective equipment (PPE) face mask components being produced by Axiom in collaboration with the Defence Science and Technology Group.
We have seen a bit of change with people wanting to bring manufacturing back to Australia. Some companies that normally go to China are bringing manufacturing back into Australia, looking for other options: a bit of contract manufacturing and some tooling work. We’ve seen companies coming back, not wanting to send work overseas. There’s also been some production work as well, with medical items, and some low-volume production where people have normally got it made offshore; they’re starting to bring it back and exploring what other options they’ve got to get it made locally. I think once China shut down, people saw they had no supplies for a couple of months and realised that they need to look at other options. AMT: Obviously, Axiom has a background in medical. You’ve recently been involved in a project to produce face shields for healthcare workers. What can you tell us about that? CM: That was in conjunction with the Defence Science & Technology (DST) – we’ve worked with them for about 10 years now on various projects. One of those projects was the Silvershield and Redwing IED protection device, which featured injectionmoulded components. Once DST determined that there was going to be a shortage of PPE and they needed some quick turnaround on tooling and moulding, they came to us with a design of what could potentially be manufactured quite quickly in Australia with available materials.
Craig Maynard, General Manager at Axiom Precision Manufacturing.
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Following that initial discussion, once they had their final design, we started building a tool. It took us a week to build the tool, eight
MANUFACTURING & COVID-19
SPECIAL FEATURE
The injection moulding die used by Axiom to manufacture the face mask strut components.
calendar days, which is pretty quick when we had a four-day Easter break in there. We were then moulding parts the following Friday. The rapid turnaround from design to production was a result of the long-term working relationship Axiom had with DST and having the capability to build a tool and mould the parts in-house. With Axiom being able to manage design, tool build and moulding in-house, that went a long way to achieving such a short delivery time.
manufacturing. The car industry may never come back, at least not for a conventional car. But maybe an electric car is where we could be looking now, manufacturing something like that, so you’re not relying on bringing cars in as well. Especially with defence industry, it shows that you do need sovereign capability, because you don’t know when an event will change the global landscape, that could change the supply chain of where you can get your products.
AMT: And you’re up and running with production of these parts now?
AMT: What do you think government could be doing to help build that sovereign manufacturing capability?
CM: We are running production, we’ve sent a batch of parts out for initial feedback on the feel and comfort during long periods of use and also any potential concerns they have with it. The initial feedback we have received is positive, with some minor changes to the part being suggested. There is interest from overseas in the units, as well as interest locally. The unit is a low-cost option in terms of manufacturing, so it could prove to be a very benificial PPE item locally and internationally.
CM: I think one of the best ways the Government can help build sovereign manufacturing capability is to have a bipartisan sovereign purchasing policy. It’s great that the Government is providing grant funding to help build sovereign manufacturing capability. But companies have got to have the confidence to invest in training and machine capability to make the most of these grant opportunities. There’s no point investing with grants and spending all this money on capability if two years down the track we have a change in government, resulting in a change of policy and stops buying locally, or the big programs stop buying locally. That’s where you need that support from government, with policies around buying local, and making sure it’s not just the appearance of buying local, where the Prime or the Tier One to the Prime is a local company, but then they buy everything from offshore. We need to make sure that it’s flowing right down the chain of buying local and manufacturing local; not just buying from this Australian company even though they’re just buying everything offshore, because that just defeats the purpose of all the investment from the Government. So the Government’s got to lead the way with their buying habits, and then others will follow suit.
AMT: What do you think the crisis has revealed about the importance of Australia having a local strong local manufacturing base? CM: I think it has really shown we can’t rely on just buying products from overseas. We’d recognised that before, and especially in defence the Government has had a push for a little while now on sovereign capability. But this has really emphasised the importance of that. I think some people may have just seen sovereign capability as a catchphrase, but now we’ve really seen the benefit of it. This will flow down to medical and other areas of manufacturing as well. It has really highlghted the need to have that strong Australian manufacturing base, where you can buy products without having to rely on them coming from overseas. Even where we do have Australian manufacturing ... of toilet paper for example, there was a shortage for a long time even though it is manufactured in Australia. Imagine if you had to bring that in from overseas, how much more trouble you’d be in. So I think it’s really emphasised you need that sovereign capability for all types of
We’ve seen over the last 100 years what Australia has come up with. Now it’s about making sure that we nurture that industry. It’s starting to grow – we’re seeing training happening, more apprentices being employed. Unfortunately it’s probably about 10 years too late, but at least the effort’s being made down and the investment’s being made to try and bring it back, which is really good. Continued next page
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SPECIAL FEATURE
MANUFACTURING & COVID-19 Gavin Smith, President – Bosch Australia & New Zealand.
Continued from previous page
BOSCH AUSTRALIA Clayton, Victoria. Gavin Smith, President – Bosch Australia & New Zealand AMT: Firstly, tell us about Bosch Australia and the business’ activities. Gavin Smith: Bosch Australia is the representative subsidiary for the Bosch group in Australia and New Zealand. The company here has been around in one form or another trading since the early 1900s. The company’s grown in different directions, but it literally does a little bit of that which Bosch does everywhere. We operate across four sectors: mobility solutions, consumer goods, industrial goods, and building & energy technologies. Some of our businesses are the leaders in their field and large in scale, others are small and relatively new to our portfolio. But we have a team of about 1,300 people across Australia and New Zealand. Our turnover is just under a billion Australian dollars this year. And we are still a significant manufacturing and engineering location for the Bosch group in the areas of vehicle safety and comfort electronics, and we import and trade the portfolio of consumer goods, industrial goods, building & energy, and automotive aftermarket parts as well. AMT: How has the coronavirus pandemic affected Bosch Australia and what’s been the impact on the business? GS: It’s interesting because we are a business of many parts. Some parts we would say have been completely unaffected by the virus itself. We haven’t noticed a decline in trading conditions; if anything, a couple of our larger businesses are trading more strongly than had been expected, particularly in the consumer goods areas, which may be a little bit counter-intuitive. Also in the industrial sector, where we have equipment and service for the resources sector, that’s going strongly. If we look at large projects where we’re supplying building technology and smart security systems, they’re going strongly as well. The areas of our business that are suffering are in and around the automotive sector, particularly supplying the likes of automotive parts to the independent aftermarket through our trade customers, and also the supply of workshop test equipment and services relating to that. They’re the ones that have been adversely affected in the main. The interesting thing for us is that the parts that are affected contribute about 10% of our revenues. The parts that aren’t affected contribute about 90%. So we’re actually in better shape than many during this really difficult time. AMT: What have you been doing differently in your operations to manage the impact of the virus? GS: Obviously the first thing is that any locations which have got a high concentration of staff, we changed almost immediately. I think we were one of the early companies that introduced work-from-
AMT JUN/JUL 2020
Bosch Australia’s Manufacturing Solutions (BAMS) division will be manufacturing test equipment to check ventilators by an industry consortium set up to combat the COVID-19 crisis.
home policies. On any given day our campus in Clayton would normally have 900 people there; on a busy day now, there are circa 100 there. That campus is predominantly office-based staff – engineering, sales, admin, finance – so they’re all now working from home. The people that can’t work from home obviously are warehouse staff and manufacturing staff, but within those two areas we’ve segregated shifts, we’ve segregated into specific work teams. We’ve created new breakout areas and meals areas so people are not mixing in large numbers in one place. And obviously we’ve got a rigorous social distancing policy, which the team are adhering to, and a rigorous cleaning process. So interestingly for our company, with 1,300 employees, we’ve only had one reported case of infection, one employee. It’s been well managed, the staff have done all the right things and have been extremely supportive. And you know, working from home has been challenging for many, but once we settled into this as the new routine, the new normal, we’re actually finding it’s giving us some surprising benefits as well. There are areas where productivity has improved, where our responsiveness is better. It’s forcing us to think differently about communication: not just how we do it, but how often we do it, and what we communicate as well. That’s been an interesting development. AMT: You’ve been awarded a $1m project as part of an industry consortium led by Grey Innovation, building ventilators to fight COVID-19. Can you describe that? GS: I think the first thing is that all credit has to go to Jefferson Harcourt, the executive chair at Grey Innovation. He and his team came up with the idea. They put together a straw man proposal of what it could look like, how it might work. They then reached out to companies who could be part of the consortium. Jefferson and I have known each other for a while. He knows what we do and what we are capable of. Interestingly enough, I think he started his career with us some 20 or so years ago before he built the Grey Innovation business, so he knows us from the inside as well. He asked the question: “If we can get a project consortium together and it makes any sense, would you be interested, and can Bosch be involved?” I said: “Well, off the top of my head, we’d love to be involved, would love to give support to the extent that we can, but I don’t know what that is yet.” It was a very formative discussion, based on blue sky ideas and hope and enthusiasm. But Jefferson then got what I described as a coalition of the willing together who said “Yes, we’d be in it. We’d be prepared to do what we can.” It was pitched to the Victorian Government. The Government gave us some homework to do. And again, all credit to Jefferson and his team, they took it back to the Government, they prosecuted the argument why it was a good thing to do and how it could be done. And lo and behold, we were able to play a role.
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SPECIAL FEATURE
Bosch Australia’s headquarters in Clayton, Victoria.
So Bosch Australia Manufacturing Solutions (BAMS) is a significant part of our business that we’ve built over the last five years, producing special-purpose equipment for factory automation. It’s something we’ve got a lot of experience doing for our own factories, but it’s only in the last five years we’ve been doing it for external customers. BAMS has built up quite a portfolio of bluechip customers. We’re also in the medtech and biotech space, so we’re pretty experienced at dealing with companies with these very stringent standards relating to health products. So for us it was quite a logical extension to quote to build the machinery needed to test these ventilators. And that’s the contract we’ve been awarded. It’s very challenging timelines. The team will be working seven days a week. Some will be working very long days to deliver the equipment by the promised date. But it’s a project the team are very proud to have been awarded, and will be very proud to deliver. AMT: Outstanding. So what do you think the crisis reveals about the importance of manufacturing in the Australian economy and Australian society? GS: I think many people will be reflecting: why are we so reliant on overseas supply for things which are of national importance and critical in the public health space? I know at a government level, both state and federal, there will be some soul searching: what should we do differently? What will we change? One of the hats I wear for the Victorian Government is as a member of (Minister for Industry and Trade) Martin Pakula’s innovation taskforce. Even in that group, we were talking among ourselves and also with the minister and his department about: what does post-COVID-19 Victoria look like when it comes to manufacturing things that today we bring in from offshore? I don’t think anyone has a silver bullet or a magic answer to all the problems that have to be solved for us to make things in Australia, which have either been lost or never been made here, but we certainly need to take a fresh look at what would make sense. One of the biggest disappointments for me in my professional career is that there was no way to save the automotive industry in Australia. Having had more than a hundred-year history making cars in Australia, and more than 50 or 60 years designing, developing and manufacturing them in the country, the competence and capability of that sector built up, which then benefited the whole economy and other manufacturing sectors, whether it be in biotech, medtech, materials or whatever else. To lose that as a fundamental cornerstone of manufacturing, engineering, design, development and production capability... it was tragic. We can all argue whether it should or shouldn’t have been subsidised, built the right cars or didn’t build the right cars. But the core fundamental issue is that industry policy was flawed, and that’s what resulted in the industry not developing in a way that could be sustainable. I think that’s what the federal and state governments now need to rethink: what is appropriate industry policy to attract manufacturing back? What is an appropriate contribution of manufacturing to the Australian economy? Its current level at 6% is too low. The German equivalent is 23% – that’s too high. But certainly anything south of 10% is, in my own view, is far too low. We need an economy that has got multiple strong pillars. Manufacturing can and should be one of those.
ASSESS YOUR ELIGIBILITY FOR REBATES ON PRODUCTION CHANGES Has the COVID-19 crisis disrupted your sales or changed your target market’s needs? Have you identified new market opportunities but lack the investment required to develop products or change your manufacturing facilities? If so, the R&D Tax Incentive program could help you finance your innovation or the re-purposing of your manufacturing operations. Whether you’re looking to improve old processes or develop entirely new products, the R&D Tax Incentive is designed to minimise the risk of these developments. It may provide you with a cash rebate of up to 43.5 cents for every dollar you spend on your eligible R&D activities. You could be considered eligible for the R&D Tax Incentive if you are: - undertaking the development or improvement of processes and products with the intention of generating new knowledge - unable to determine the outcome of these developments in advance without undertaking a systematic progression of work - planning to spend more than $20,000 on these developments. If you would like further advice on your eligibility or on claiming the R&D tax incentive, please contact our R&D Team on (03) 8823 6840.
Dr Rita Choueiri Director R&D Incentives Ph: 03 8823 6840 rita.choueiri@williambuck.com
Continued next page
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MANUFACTURING & COVID-19
Stagekings Managing Director Jeremy Fleming (centre) and Head of Production Mick Jessop with co-founder Tabitha Fleming. Continued from previous page
STAGEKINGS Kurnell, New South Wales Jeremy Fleming, Managing Director, and Mick Jessop, Head of Production AMT: Firstly, can you tell us a little bit about what the business was doing before the coronavirus pandemic hit? Jeremy Fleming: Sure. We’ve been around for five years as a business. We worked specifically on decorated structures for festivals and events – so, big stages with a lot of set pieces involved. We’ve done some pretty big stuff like the Commonwealth Games Opening Ceremony; we’ve done Shakespeare’s Pop up Globe Theatre, which we built three times around the country; we built the replica Edinburgh Castle set for the Edinborough Military Tattoo; as well as a lot of big music festivals stages. AMT: When the pandemic really hit in March, how did that affect your business and the way it operates? JF: So the pandemic hit on Friday the 13th. Mick and I were in Melbourne, where we’d built a giant set piece for the Formula One World Tour down there with Miley Cyrus and Robbie Williams. We’d built a 30-metre long spike with a seven-metre-diameter globe on it, which was very cool. We were ready for that to happen, and to meet the international guys coming over, when the Prime Minister put out the ban on all public gatherings, and that put a stop to that. Basically, from there on, over the next 48 hours, we had call after call, cancelling every event we had coming up for the rest of the year. That was a terrible, terrible time. We had all these phonecalls. We’d known that the coronavirus was happening everywhere else, but we didn’t realise it was going to hit us so hard until that day. Mick Jessop: We’d anticipated that it could be a problem. But then it happened quite quickly, when everything was cancelled and all the work for the rest of the year just disappeared in a matter of 24-48 hours. AMT: Okay, so how did you adapt to that? JF: The first thing we had to work on was how we would manage the loss of income. Over that weekend and the following week, we worked through what we needed to do to cut costs. We spoke to the banks, and we talked to our landlords. We’d already started immediately thinking of what we thought we could do. For example, we designed up these hospital temporary waiting rooms.
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After the pandemic resulted in the cancellation of most of Stagekings’ work in the events industry, the company has successfully diversified with its IsoKing range of work-from-home desks and accessories.
MJ: Yeah, we’d heard that from a friend in the healthcare system that one of the immediate needs was waiting rooms for COVID-19 testing facilities, because they wanted to keep them separate from the general hospital building’s waiting rooms. So we looked into doing temporary structures, because that’s what we are specialists in. We put together a few designs based on temporary waiting rooms and temporary clinics, and we sent them out. But it didn’t really gain much traction at the time, we couldn’t really get it in front of the right people. So we went back to the drawing board. And that was the Sunday of the following week. JF: On Friday the 20th, we made a decision that we couldn’t continue with as many staff as we had. We had 23 staff at the time, so we had to lay them all of, besides Mick and myself basically. And even Mick and I had worked on how we could just do two days a week and leave the other days, and worked out what we needed to do. So on the Friday, we sent everyone off: they left, they left their keys behind, they took all their tools. It was that Sunday that I was messaging with a friend in Ireland, and basically they run a production company as well, similar to what we do. And he said: “We’re looking at doing some furniture. You know, you guys have got the same stuff as us. Why don’t you do the same thing?” And so I messaged that idea over to Mick, and Mick ran with it. I’ve said to a few people that Mick here, Mick’s a bit of a furniture hobbyist. He’s always tinkered with furniture itself, and it was the perfect idea for him. MJ: Yeah, I’ve always had a bit of an interest in furniture on the side; I’ve got a little workshop at home. So we came up with a couple of designs that night; we inherited some designs from our Irish friends, and then we came up with a couple of our own. That was Sunday, and we did the prototyping on Monday, then we worked on the e-commerce site on the Monday evening, and they went on sale Tuesday afternoon. It was that quick. JF: It was a really perfect idea for us. We have the machinery, we have the carpenters, we had the crew. It was perfect for those guys just to practically switch over and start that immediately. When we started on that, we made a couple of samples on Monday, took photos on Tuesday, and we were on sale at 3pm on Tuesday afternoon. And we actually had to call our crew back in on the Wednesday. We’d said to that crew on Friday: “We might not see you for the rest of the year.” And then we were pulling them back in the following Wednesday.
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SPECIAL FEATURE
And it’s gone from there. We sold about 20 desks in the first day. That first Facebook post has now been seen by half a million people. And as of right now, we’re sitting at about four and a half thousand individual components sold. Being from the events industry, we’re actually donating that $10 from every order of the desks to SupportAct, which is a charity for the music industry that’s supporting out-of-work event crew. And at the moment, after four weeks we’ve raised $20,000 for those guys. We’re really trying to support that industry. That’s really important to us. AMT: That’s fantastic. So what do you think we’ve learnt from this crisis about the importance of Australia maintaining and nurturing a strong local manufacturing industry? JF: I think it’s so important. Obviously for us, we’ve now got 56 crew back working, and they’re all out-of-work events guys and carpenters, and it’s important to us and to the industry that we can keep those guys working. And we also see that internationally, travel’s obviously going to be stopped for quite some time. We do see that a lot when people are talking to us, focusing more on Australian made, buying local; they’re more open to the idea of buying from Australian manufacturers. So we see that as a huge opening, that we’re going to continue to grow in that area. We do think that businesses are more open already to buying Australian made and looking at that. We think consumers have got a little way go – we still get calls from people wanting to pay China prices. But it’s very important to be manufacturing locally and selling Australianmade products.
The success of the IsoKing range has allowed Stagekings to re-employ 56 staff that had been stood down when the pandemic first hit.
www.axiompm.com.au www.bosch.com.au www.stagekings.com.au
Australian manufacturing has never been so important Whether you need to maintain your existing workforce and supply chain, or pivot to new products or markets, we can help. Call us to discuss: > entitlement to JobKeeper and the options available to you to manage your staff > your contractual obligations – whether you, your suppliers or your customers can rely on force majeure to excuse performance > whether you are entitled to a reduction in rent as a result of the Mandatory Code for Commercial Tenancies > availability of tax concessions to support your business > management of your supply chain, import and export opportunities and risks
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MANUFACTURING & COVID-19 A New Deal for Australian manufacturing A rejuvenated Australian manufacturing industry can make a significant contribution to paying off the $320bn COVID-19 stimulus package debt. Moreover, it can deliver a sovereign capability that is absolutely vital to Australia’s economy, workforce, and national interest, writes Geoff Crittenden. Manufacturing has slipped from 28% of Australia’s GDP in the mid 1960s to just 5% today. While it is easy to blame the demise of Australian manufacturing on the rise of Asia as ‘the world’s factory’, there are significant structural deficiencies in our economy and in government policy that have contributed to the situation: in Leadership, Investment, Education, and Compliance.
owner can see a consistent pipeline of work ahead to service the debt. In the volatile and highly competitive market in Australia this is rarely the case. For the manufacturing sector to grow, it is essential that SMEs have much greater access to capital for investment and cash flow, for growth.
Education The OECD’s latest Programme for International Student Assessment (PISA) results show a long-term decline in maths and science skills for Australian students. In 2018, Australian 15-year-olds, performed more than a year below those in 2003 in maths and a year worse in science than those in 2006.
While none of these issues can be solved in the short term, strategic incremental movements over time will engender confidence, and help reverse the downward slide of Australian manufacturing.
Leadership Successful industrial nations, like Sweden, South Korea and Germany, regard manufacturing as essential to their economies and social infrastructure. This fosters a degree of bi-partisanship and strategy that is strongly supported by voters. In Australia, manufacturing has been denigrated as a ‘Rust Industry’. Research & development (R&D) tax concessions come and go with successive budgets, as does critical CSIRO funding. Development grants for small and medium-sized enterprises (SMEs) are notoriously complex and difficult to access. A successful government-owned defence contractor was shabbily compared to canoe builder by a Commonwealth minister. The withdrawal of subsidies to a car industry, which contributed $37bn to the economy (2.2% of GDP), was made out to be a political virtue. Political infighting over the environment resulted in a policy vacuum in the power industry which, by forcing energy prices up, is inexorably destroying our heavy industries. The root of the problem is the fact that political ideology and power are placed above national interest. Manufacturing is inherently associated with unionism and one side of politics. While our industrial environment is relatively benign, mistrust remains persistent on both sides. With manufacturing on life support, this hangover from the Industrial Revolution needs to be addressed. Politicians, employers and unions must be persuaded to put national interest before self-interest.
Investment COVID-19 exposed our reliance on overseas manufacturing while demonstrating the innovation and talent within Australian industry. The Federal and State Governments must take advantage of
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the challenges that a post-COVID-19 world will bring, make manufacturing a priority, and work collaboratively to re-grow our industrial base. The National Cabinet is an initiative that should survive post COVID-19. In 2019, the Australian venture capital market invested $1.7bn in local start-ups, with the lion’s share going to biotechnology and IT. That converts to US$56 per capita, which compares poorly with the UK (US$130); Sweden (US$265); US (US$282); and Israel (US$414). It should be a priority to establish a framework to expand the venture capital industry; it will be critical to growing the economy. Australian superannuation funds have $3 trillion under management. Approximately 25% ($750bn) of this is invested in Australian shares. Based on a break-up of the top 100 ASX-listed companies, on average, $60bn is invested in industrial shares. Therefore, in the bestcase scenario, 2% of the nation’s retirement savings is invested in manufacturing. This is less than half that invested in consumer goods. In the wake of COVID-19, it would not be unreasonable for a set of investment guidelines to be established which better benefit the economy. Of all manufacturing companies, 87% are classified as SMEs (employing one to 19 staff). It would be reasonable to assume that a negligible number of those businesses are either the recipients of venture capital funds or are publicly listed. The majority are funded from cash flow and an overdraft facility secured by property (normally the family home). Some may have a small group of private investors but they will be in the minority. Therefore, the risk of investing in plant and equipment to join the Industry 4.0 revolution can only be contemplated if the business
It should therefore be no surprise that in the last OECD study of graduates by subject, Australia was placed 36th for Engineering and 14th for Arts; despite there being a demand for the former and a surplus of the latter. The same outcome is reflected in the VET sector, where there has been a longterm decline in registrations and completions of nationally recognised engineering trade courses. To resolve this Australia has adopted a ‘push’ approach by focusing on school-based STEM (Science, Technology, Engineering and Maths) programs. The Australian Council for Education Research (ACER) review published in 2019 notes the challenges for STEM education at school level have not been met; student engagement and performance in STEM have been declining and Australia does not have the supply of qualified teachers to improve learning. Furthermore, it is widely recognised that careers advice and student exposure to work opportunities is poor, particularly in STEM-based industries. In its 2018 review, the (Victorian) Education Department found careers education started too late in government schools, varied in quantity and quality, and did not provide enough meaningful work experience. There is no question that STEM education and careers advice must be improved. However, industry cannot continue to rely on Government to solve the problem. There needs to be ‘pull’ strategy that engages students through close collaboration between schools and companies. Students of all ages need to be excited by the opportunities available in manufacturing. Industry and schools need to work together to develop and deliver programs which engage, excite and attract students.
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Compliance In Europe and North America it is practically impossible to sell anything that is not certified as compliant to a recognised industry standard. Compliance is legislated in Europe, and in the US it is upheld through a litigious legal system. In Australia, it is easy to find non-compliant products, from critical steel infrastructure through to the family caravan. There is neither legislation nor litigation to uphold standards. Compliance is seen as an unnecessary cost by procurement professionals who, even if they specify the appropriate standards, rarely enforce compliance through the contract. Consumers, on the other hand, expect products to comply and are often shaken when they find out that the goods they buy are not manufactured to a recognised standard.
However, bringing quality into the mix and enforcing standards drives competitiveness in the domestic and overseas markets. This has been borne out by European defence and rail infrastructure Primes enforcing ISO standards on companies wishing to join their supply chains. The result has been SMEs winning export contracts to supply goods into global supply chains.
Because Australia has no enforceable If Australia is to re-grow its manufacturing compliance system, it has allowed overseas base, it must legislate to ensure all goods manufacturers to take full advantage of sold in Australia comply to Australian or high volumes and low labour costs to sell recognised international standards. non-compliant product into Australia and make price the overriding purchasing The solution criteria. Overheads in Australia mean our Australia governments must transform companies cannot compete on price alone, Australia into a world-class manufacturing AMTIL-ADVERT-MAIN-2020-OUTLINED(FA).pdf 1 17/1/20 10:49 am which has been a key factor in the demise of hub – it must be a national goal. manufacturing.
Governments must mandate that every item sold in Australia complies to an Australian or internationally recognised standard. Governments must invest in the manufacturing industry, incentivise investment by superannuation funds and venture capitalists, and improve access to capital for SMEs. Governments must also invest in the sectors that support manufacturing, from energy through to education. Only then will our manufacturing industry be globally competitive, and in a position to help bolster the Australian economy, and repay the $320bn COVID-19 stimulus package debt. Geoff Crittenden is the CEO of Weld Australia. www.weldaustralia.com.au
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MANUFACTURING & COVID-19 Konica Minolta helps EGR with rapid prototyping PPE Konica Minolta Australia has worked with the EGR Group in the rapid prototyping phase of the company’s shift to personal protective equipment (PPE) for sectors including healthcare and retail in response to COVID-19. EGR produces thousands of tonnes of plastic sheeting a year for the automotive industry in Australia and globally. However, with COVID-19 slowing the automotive sector, EGR saw an opportunity to use its resources to help with PPE while at the same time keeping its business financially viable for the employment of its 800 local staff.
with flexible material made it the right fit for this project. It produced a prototype that represented the end product, which assisted with the overall speed to market. Having Konica Minolta as an innovation partner was extremely important and the commitment the team showed in getting this off the ground was second to none.”
EGR enlisted long-term partner Konica Minolta to assist with rapid prototyping of the face shield design. Konica Minolta was on hand to 3D print design iterations the same day or overnight, for the quick transition to mass manufacture. Capacity is now at 50,000 face shields per day in EGR’s Brisbane manufacturing facility.
Nathan Pallavicini, 3D Manager at Konica Minolta, said, “Konica Minolta is proud to have helped EGR’s rapid change of direction to deliver PPE to essential workers. Through 3D printing, Konica Minolta can assist businesses like EGR with rapid prototyping solutions as well as with 3D printing solutions that are capable of producing enduse parts to ensure their survival and success into the future.”
John Bartley, Group General Manager at EGR, said: “EGR is by nature an innovative company that can recognise new opportunities and the need to adapt to market conditions. For an Australian manufacturer, this speed and agility is critical to survival. We saw the opportunity to deploy EGR’s resources to address a critical need for PPE while keeping our people employed and our factory open. “The definition of the prototype produced by the Markforged X7 printer used by Konica Minolta as well as the ability to print
Bartley added: “Throughout this process EGR has seen the benefits that commercial-grade 3D printing can have on the business and we are definitely keen to continue down the PPE route into the future, as well as explore other potential use cases. The lesson here is that Australian manufacturers need to be adaptable, diverse and able to produce materials quickly and easily with less resources.” www.konicaminolta.com.au www.egrgroup.com
RMIT – 3D printers help shield healthcare workers from infection Engineers at RMIT University have been 3D printing face shields for frontline healthcare workers in a rapid response to projected shortages during the coronavirus pandemic. A team at RMIT’s Advanced Manufacturing Precinct (AMP) has been making prototype face shields to help protect clinicians from airborne droplets that can carry the virus. Amid a shortage of protective gear in Australia, with major hospitals in Victoria and Tasmania contacting the AMP for advice on manufacturing solutions.
they were well positioned to rapidly trial and improve designs.
Within days of receiving these requests, facility technical staff had improved on an opensource face shield design and delivered the first batches to hospitals for testing. They are now printing larger batches on the facility’s bank of 3D printers, while also seeking industry partners for mass manufacture.
The design is simple yet effective, easy to assemble and clean for reuse. The shield consists of an A4-sized overhead projector sheet attached to a plastic support frame produced by RMIT, and held on by hair ties or elastic bands. The team has also designed a variation specifically for Ear, Nose and Throat (ENT) surgeons that allows space for their spectacle-mounted headlights.
“We immediately understood the vital role of protective equipment in helping Australian healthcare workers get through this challenging time and have pulled out all the stops for an urgent response on this,” said AMP Director Professor Milan Brandt. “This includes refocusing existing partnerships and projects to meet this need.” RMIT’s partnership with the BioFab3D lab at St Vincent’s Hospital has focused on 3D printing medical implants since 2013, but pivoted to producing face shields as soon as COVID-19 hit Australian shores. BioFab3D lab manager Dr Cathal O’Connell said
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“Our main role, being a fabrication lab based within a hospital, is that we can try multiple designs with the clinicians themselves, get their approval, and then send out the approved design to the big 3D printing sites who can manufacture them at scale,” O’Connell said.
Melbourne-based ENT head and neck surgeon Dr Eric Levi has received 70 of these adapted shields and encourages other clinicians to trial them. Levi applauded the responsiveness of BioFab3D and RMIT for delivering a simple, tailored solution for his profession within days. “This is an example of how 3D printing skills are making an immediate difference to clinicians at the front lines facing the patients,” Levi said. “I’m grateful for this innovation and collaboration. We’re all in this together.” www.rmit.edu.auw
MANUFACTURING & COVID-19
SPECIAL FEATURE
ANCA joins team to manufacture life-saving ventilators locally
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ANCA is one of the partners in an industry consortium supported by the Victorian and Commonwealth Government to manufacture ventilators to combat the COVID-19 pandemic.
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One of the outcomes of the COVID-19 pandemic is a realisation of how much Australia needs its own robust advanced manufacturing sector. Coming to the aid of a medical system crushed world-wide by the COVID-19 pandemic, ANCA has joined the NOTUS Emergency Ventilator Program, an initiative led by Melbourne-based technology commercialisation experts Grey Innovation to rapidly manufacture sophisticated ventilators locally. Banding together with other Australian manufacturing businesses including Marand and Bosch Australia (see page 43), the consortium harnesses various industry capabilities to make more ventilators locally. “As a business we don’t normally manufacture parts for machines such as ventilators,” said Pat Boland, ANCA CoFounder and Managing Director. “We were approached to join the initiative and were able to utilise our machine shop to manufacture components and skilled labour to build key sub-assemblies of the ventilators.” ANCA has been one of Australia’s most successful advanced manufacturers for 40+ years – designing, manufacturing and exporting 99% of its highly accurate CNC grinders to the global market. It supplies to a wide range of industries, including the medical industry, and has been classified in the US as an essential industry because so many of its customers are manufacturing medical components. With the collapse of the automotive sector in Australia, there has been a growing skills gap in advanced manufacturing, which leaves the country reliant on importing expertise and products. A thriving Australian manufacturing sector requires not only production, but an understanding of engineering, design, systems and assembly of components which all require specialist skills and infrastructure.
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Ventilator parts undergoing quality control at ANCA.
“Luckily it seems like we won’t need thousands more ventilators, but if we had, I think all Australians would appreciate being able to source these locally rather than rely on importing the technology. “We have been fortunate to receive government support over the years, for example grants from the Advanced Manufacturing Growth Centre (AMGC) to invest in research & development – and the payoff is now, where we can pivot to meet a different need. It means we have a team who have the expertise to take on this task.” Around the world it is predicted that total demand for ventilators could run into the tens of thousands, with existing manufacturers unable to meet demand. With production already in progress to meet tight timeframes, ANCA has hit the ground running, with machinists willingly working weekends and over Easter to make parts and help combat coronavirus. Ventilators are highly complex medical devices; the technology requires rigorous manufacturing and assembly standards to ensure viability for patients. ANCA is utilising a crossfunctional team comprising manufacturing, supply chain, project management, stores logistics, and safety to support this crucial work. Mark Patman, Production Operations Manager at ANCA, explains: “With an extremely tight timeframe, we’ve jumped in and started manufacturing the parts; it’s a team effort across the business to get it done. As a well-established global business, a lot of the processes required to deliver this type of project are already in place at ANCA. We can leverage off all our systems to be able to deliver the project.” www.anca.com
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“The Second World War led to enormous innovation in Australia as the supply chain to the defence forces was severed with the fall of Singapore,” Boland added. “This led to an incredible commitment to establishing a home-grown defence industry. The COVID-19 pandemic has strong parallels with this scenario, where as a country it was impossible to import protective equipment or ventilators for the health workers. We want to be confident that we have a workforce who can produce what we need.
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ONE-ON-ONE
Warren Jansen is the Executive Director of Industry Capability Network Limited (ICNL). He spoke to William Poole. AMT: Tell us firstly about the Industry Capability Network Limited and its activities. Warren Jansen: The Industry Capability Network Limited (ICNL) is a national entity that co-ordinates activities for the Industry Capability Network (ICN) offices across the country. There is a presence of ICN offices in most states, and ICNL acts as the national office and primarily develops and manages our IT platform, ICN Gateway, which bring suppliers and buyers together on-line. We bring businesses together. We’ve got local suppliers who look for work, and there are buyers – we call them proponents – who handle large-scale projects. The projects might be based in the mining sector, the oil & gas industry, infrastructure, construction, defence and so on. And we act as an intermediary to bring those buyers and suppliers together. We ensure that supply chains function adequately to service these projects. There’s a whole raft of different industries that we cater to, and our platform services all these buyers and suppliers, and helps drive Australian industry through this matchmaking process. In recent times however, we have progressed beyond this and provide our clients with market analysis by using the large database that sits behind our IT platform. We operate the only database in the country that has over 80,000 companies registered with it. The broader network has been operating for more than 30 years, but this is the 25th year for ICNL as a national entity. The state offices act independently and are governed by independent boards, or the like, with their own funding streams. We’re all connected as a network, but we’re also independent with our own corporate structures. It can sometimes be construed as a complex network, but I guess any federated alliance would have some elements of complexity. And I think the results speak for how successfully our network functions, despite each entity being quite independent. As an example, the contribution in terms of the value of contract wins delivered in states over the last 25 years is in excess of $30bn. The value of project opportunities is over $300bn.
Within the first four-week period, we had more than 600 EoIs submitted against works packages. As a network that was quite an effective way of capturing supplier data. It also ensured that if there was the need in a particular state for hand sanitiser or face masks or whatever else, our consultants on the ground could connect those suppliers up with the right people. This meant there would be adequate supplies to meet that need. From a national perspective the portal has been very well received. We had almost 1,000 new companies joining us in less than a month. I guess that’s testament to the fact that we’ve been an established brand for a while, and the network brings value because all of the states have very experienced consultants on the ground who work very closely with the buyers and the suppliers to ensure the right linkages. We also did something a little different this time. We introduced more streamlined reporting, because the situation around COVID-19 is so dynamic and fast-moving. A lot of State Governments and even the Federal Government wanted quick information, quick stats and insights. We incorporated Power BI, which is a Microsoft tool, onto our portal. That spat out real-time data, and we were able to keep people informed more quickly about how things were going – the number of suppliers, number of EoIs, and so on. So at a glance you could actually look at those stats and make informed decisions, at state and federal level. The other thing we did was launch an app, the ICN COVID-19 Response App to ensure the wellbeing of the workforce in companies. We did it in partnership with the Queensland ICN office, which has a tech partner by the name of IONYX. We realised that an app like this was really lacking in the marketplace. A lot of companies wanted an app for their staff to go through a very quick checklist to ensure that if they were returning to work, they they had no symptoms of the virus and it was safe for them to return. Again, within a two-to-three-week period, we had over 25 companies that signed up for the app, and that’s still being promoted widely through the network.
AMT: Recently, the ICNL has been deeply involved in co-ordinating industry’s response to the coronavirus (COVID-19) pandemic. Can you explain what that has involved?
AMT: There’s been a lot of comment in the media about how this pandemic has highlighted the need for a strong local manufacturing base. What’s your view on that?
WJ: On 23 March we launched a national portal in response to a significant need for medical items such as personal protective equipment (PPE). There were a lot of calls to identify suppliers who could upscale or even retool to meet these demands. We saw a big role both at ICNL and across ICN nationwide, with ICNL coordinating all the tools required for the network to take an agile and proactive role in helping locally and nationally find companies who could help. We took the stance that we needed to do something nationally, so we launched a national portal on our system.
WJ: This is kind of an ideal situation – like a perfect storm – for those conversations to restart, whether it’s our over-dependency on one particular market, or whether it’s time for us to go back to the drawing board in terms of increasing capacity to manufacture locally. Do we have sufficient raw material to meet the needs that have emerged especially around PPE and a whole host of other necessities that have arisen? I think all of those questions are very valid at this point of time. I think the danger in all of this is if we revert back to the status quo, which could happen. But because the situation is so fast-evolving, it’s really difficult to pinpoint how this will affect future manufacturing in the country.
What we did was essentially develop a portal where people could list specific works packages. For example, if there’s a need in Victoria for hand sanitiser, that could be specified as a works package that would sit on the portal and our suppliers could look at that works package and say “Yep, I have capacity to supply that”. And then they can submit an expression of interest (EoI) against that works package.
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I guess there are some fundamental things that will need to be to reassessed. Things like energy costs, or the impact on labour and resources. We’ve seen what effect this virus has had on the labour force in general. And I think all of these questions would be asked in a post-COVID-19 scenario. But it’s difficult to really ascertain how long it might take to come up with the right answers.
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I guess from our perspective, the tough thing would be to imagine that we’re going back to a status quo scenario and not really looking at reinstating some of the industries where we could potentially manufacture within the country. We’ve seen a lot of suppliers retooling or realigning their business models to cater to the current need. We’ve seen the agile approach that they’ve taken, which has been remarkable because they’ve been able to meet the needs of certain states quite quickly. So in terms of having evidence that certain manufacturers can reconfigure quite quickly and pivot from being in one industry to something different, the evidence is there. I guess it’s how best governments would essentially use some of those examples and really put in the necassary resources to strengthen those areas that have potential to increase our manufacturing base. AMT: And as we get through the crisis and start to think about recovery, what sort of measures would you like to see government extending to support the manufacturing sector? WJ: I haven’t really seen any firm statements in response to that question from anyone in Government, and to some extent, that’s understandable because it’s a fluid situation at present. However, it will be interesting to see what recommendations come out of the Government-appointed taskforce on the impact of Covid-19. I guess a lot of us in the industry are pretty much waiting to see where the current conversations are going. A lot of us are wondering what this crisis actually means for the manufacturing sector. How much is actually going to change through this entire process? And if at all, is there going to be any change? And as I said, the risk is for us to go back to the status quo and not recognise the capacity that we currently have within local suppliers, and how quickly that they’re able to ramp up capacity, retool and pivot within their own industries and other industries. I think it’s perhaps a broader conversation around the Government’s appetite to really assist the suppliers to be able to upscale quickly. And what would that mean? Is it funding? Is it extra training? Is it concessions around personnel and resources, or concessions around energy costs and so on. These are the broader conversations that I would like to see actually happening across the board, because it’s the same questions people are asking. But this is such an unprecedented situation that there is no templated response that the Government really has. Its more watch this space and see how things progress before committing to anything. Continued next page
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market at the moment. And the number of companies that registerd on ICN Gateway within that very short period of time is testament to the fact that people trust the brand. They know that once they’re on the ICN platform, they are in a position where they will be recognised for what they can do and how they can assist Australian industry to meet certain gaps in the marketplace.
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Because the other factor in all of this is that the virus hasn’t just affected the Australian economy. It has obviously had broader ramifications across the globe. In terms of what we think the Government should be looking at, it is certainly about having those broad conversations with manufacturers and local suppliers and reflecting on how a lot of the local suppliers were able to very quickly address some of the needs that emerged. That’s something that should be recognised. And we should use those examples to ensure we’re never again in a situation where local supply chains come to a halt, but instead have capacity to help them move forward. That’s something that would be quite beneficial, because this is an unprecedented virus and an unprecedented situation for the world, but I think it is also a great opportunity for us to reflect on some of the processes that we didn’t have to cater to an emergency like this. AMT: You’ve been with ICNL since August 2019. Tell us about your professional background up to this role. WJ: I have a background in law, and I started my career in journalism in Sri Lanka. Prior to migrating to Australia, I worked in senior management in the media industry that was at the forefront of a 30-year-long war. After migrating here, I’ve been in the not-for-profit sector, which is an area that’s close to my heart. I am passionate about helping organisations establish a sound, sustainable business model. I’ve done that within the refugee resettlement sector, and just before this role, I was with an organisation that had to transition into the National Disability Insurance Scheme. When this opportunity came about I thought it was a great segue, because as an entity ICNL had just launched a new strategic plan. The business had long reflected about what was working and what was not working, and how we work collaboratively with the entire network to ensure that ICNL’s value of bringing suppliers and buyers together was maintained and enhanced. So I was quite interested to see how the business model would evolve into being sustainable through the work that is being done. And my role as Executive Director has been to ensure that this strategy is successful and we can continue along this path. We are blessed in a sense – and I take all of these things as opportunities – in that the COVID-19 situation really highlighted ICNL’s role. In terms of a national network, we were in the best place possible to help businesses in this environment react to the crisis quite proactively, highlighting their strengths and what they could do to meet some of the needs in the
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So my role is essentially ensuring that we are relevant and current. The currency of the tools we use to bring businesses together is extremely important, and that’s why we’re moving to becoming a one-stop shop platform for industry with a whole raft of products and services that people can pick and choose from. Technological advancements are moving forward at a rapid pace, changing every single day, and we need to be up to speed with what’s happening and be agile enough to respond to all of those changes. Our strategy is very much built around that, so we can be that pre-eminent, onestop-shop platform that you would go to if you are a business that wants to promote what you’re doing and link up with all the projects across the country. AMT: And what’s the most satisfying aspect of the job? WJ: Seeing SMEs thrive, increasing local jobs; watching the smaller mom-&-dad companies that are doing it tough in this environment come through this and be able to link up with opportunities. I think that’s the most satisfying thing about this. We’re here to facilitate a process where SMEs have an opportunity to participate in the economy. We want to be able to play that role. And if there is a supplier out there who would be able to win a contract, to be part of a bigger project, because we were able to facilitate that, that’s the most satisfying part of the job. Making the process of linkage and creating that bridge is very satisfying for me personally, and I know that the entire network feels that way. That’s why we exist. For more information about the COVID-19 Response Portal, visit: www.gateway.icn.org.au/project/4531/covid-19-response For more about ICN’s COVID-19 Response Application, visit: www.icn.spresponse.com.au www.icn.org.au
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MINING & RESOURCES
National mining exploration research expected to grow mining & METS sector. The Federal Government, the mining sector and research organisations are joining forces to address a decline in Australia’s new mineral deposits, by combining national research into drilling and data collection technology. Mining equipment manufacturers are also contributing, by creating exciting innovative products for the mining sector, providing a win-win solution for all parties. Carole Goldsmith reports. Mineral and energy resources contributed 50% of Australia’s exports and 7% of its GDP in 2017-2018, reports MinEx CRC. This contribution is at risk because of the declining delivery of major new mineral deposits. Increased mining exploration, with more productive safer drilling and improved data collection technology is required to halt this decline. If this does not occur, there will be fewer mines in the future. This in turn will decrease the long-term prospects for both mining companies and their mining manufacturer suppliers. To address these issues, the Federal Government in 2018 provided a $50m grant to MinEx CRC over 10 years through its Cooperative Research Centre (CRC) program, to undertake vital mining exploration research to create new opportunities for finding minerals. The outcomes are expected to also grow the high-value Mining Equipment, Technology and Services (METS) sector. The world’s largest mineral exploration collaboration, MinEx CRC brings together industry, government and research organisations. As well as the $50m in government funding, it is backed by $41m in contributions from geological surveys and
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industry partners, plus $49m in non-staff inkind (NSIK) contributions, and $78m or 311 full-time equivalent (FTE) staff in kind, all as researchers. “We commenced in 2018 and already have 10 years of exciting projects of research and collaboration planned between industry and research organisations,” says MinEx CRC’s CEO Andrew Bailey proudly. “The key to our work is that we are undertaking research that industry wants and that will be able to be commercialised. We work with seven universities across Australia and CSIRO to bring together research that industry can use. The participating universities are the Australian National University (ANU), Curtin, and the Universities of Adelaide, Newcastle, South Australia and Western Australia.” The research is already into its first threeyear phase with 95 university researchers from across Australia working on the 10 projects. MinEx CRC education and training projects also include an additional 17 postgraduate PhD students, already underway at the participating universities, working on MinEx CRC research projects. It is also assisting in setting up training for 200 VET (Vocational Education and Training) TAFE students in specific drilling and mineral exploration fields.
Bailey explains: “Our research is broken up into three broad directives: developing more productive, safer and environmentally friendly ways of drilling holes in the ground, using coiled tubing drilling technology, which can cut drilling times by 30%-60 % of traditional methods; finding new technologies for drilling data collection; and thirdly, implementing a National Drilling Initiative utilising the best evidence of drilling and data collection from different States and Territories.” He adds that some projects will take the full 10 years to complete, while others will be completed after the first three-year term.
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Bailey is a geologist with experience across exploration, mining and research coordination, both in Australia and globally. He has an extensive background building and managing organisations and teams with successful industry research project outcomes. “The 2019 Australian mining exploration spend was $2.5bn,” says Bailey. “Since the COVID-19 crisis started early this year, the exploration rates have been trending downwards. Exploration is considered to be discretional spending, which has been cut in the current crisis downturn.”
When asked about potential opportunities for mining and resources manufacturers in supplying new types of mining equipment, Bailey speaks about two of MinEx CRC’s industry partners’ global successes. Imdex, a leading global mining technology company headquartered in Perth, is producing mining and exploration technology and exporting it worldwide. Micromine, also Perth-based, writes and supplies mining software to mining companies across Australia and the world.
MinEx CRC’s CEO Andrew Bailey.
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MINING & RESOURCES Stacker reclaimers built by Oreflow Australia for the Bald Hill lithium project.
MinEx CRC performs vital mining exploration research to create new opportunities for finding minerals. Continued from previous page
“Australian mining manufacturers wanting more business opportunities should contact Australian mining organisations like Austmine, the leading industry body for the METS sector, and METS Ignited, the government-funded Industry Growth Centre,” advises Bailey.
Left: Oreflow Australia founder Mel King with grandson Tait Comley, who also works for the company.
Moving forward, Bailey recommends: “I encourage all companies to have a threeto-five-year view to grow in the long term. Do research and invest in the future.” AMT spoke to two Australian mining equipment manufacturers who are doing just that. Oreflow Australia and Austin Engineering are growing and moving forward by researching, innovating and investing in their ongoing future success.
Oreflow - Innovative custom-made equipment for gold and lithium miners. Perth-based Oreflow Australia Pty Ltd designs, manufactures and supplies quality mineral processing and mining equipment across Australia and globally. Its clients are mainly gold and lithium miners. Chris Comley, the family-owned company’s co-owner, Director And Sales Manager, says: “Mel King, our company’s founder and my father in-law, is highly regarded by the mining sector for designing and developing many innovative products. Mel is often asked by other mining specialists including metallurgists, mechanical engineers and EPCM (Engineering, Procurement and Construction Management) project houses to quote on projects that need his expertise. Oreflow’s top selling products are vibrating screens, belt feeders, vibrating feeders, apron feeders and conveyors. ENCAPLOCK, the company’s patented dusting encapsulating system, prevents dust pollution, providing significant improvement within the plant’s working environment and enabling compliance with dust suppression environmental regulations. Comley explains: “Mel developed ENCAPLOCK, which secures the dust screen’s rubber seal in place. In cheaper
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older systems on the market, the rubber seal pops off and the dust is not contained, causing environmental and safety issues for process plant. Our vibrating screens, which are used to wash and separate mined material, are sold all over Australia and globally in the Middle East, South Africa and the Philippines.” King founded mineral processing equipment company Minspec in 2000, and started Oreflow in 2013. Now the two companies operate at the one site in Welshpool, in Perth’s south-east, and employ 14 loyal people, most of whom have been there at least five years. “Soon after Mel started Minspec, he got his first big break when Western Mining ordered two bucket elevators,” says Comley. “This kicked off Minspec’s capital equipment sales. Now 60% of our combined business turnover is in capital equipment for the mining sector and the rest is in maintenance of our equipment at mining sites.” While King owns the majority of the Oreflow business, Comley and his wife Hailey own the balance, while their three sons Tait, Taylor and Isaac also work in the business. Sharon Bayle handles all the company’s contracts, technical writing and quality control.
Among the clients that Oreflow has supplied custom-designed and manufactured products to in recent years include: Primero Group’s Bald Hill lithium project, in WA’s Goldfields-Esperance region, where it supplied a belt feeder, horizontal screens and stacker conveyors; Endeavour Mining Corporation’s Ity CIL Project gold operations in southern Côte d’Ivoire; and its Hounde gold mine in Burkina Faso in West Africa, where it has supplied 18 horizontal screens. “Western Australia’s Altura Pilgangoora lithium mine, one of the world’s largest open cut lithium mines, is also a major client of ours for spares and equipment,” Comley adds. “Altura ships the raw spodumene ore to China for processing into lithium. Our service team also mobilises to site regularly to help them run smoothly. “Our Australian and global clients tell us what they want and our draftsmen design the products, using Autopad and 3D design solid works. We have a network of loyal local suppliers to ensure our reputation of the highest quality Australian made equipment endures.” Covid-19 has affected Oreflow, explains Comley. Although the company has been inundated with requests for quotes in recent times, it is a lot harder to get the green light to proceed. “We are however looking forward to growth every year,” adds Comley proudly. “Our industry is up and down and you can’t always predict what is available. We tender for all Australian and international mining projects within our capability and achieve a 30%-40 % success rate for projects that go ahead, so that’s a strong positive.”
MINING & RESOURCES
Austin Engineering employs 1,800 people worldwide with operations across Australia, Asia, and North and South America.
Inside Austin Engineering’s Perth factory.
Austin Engineering – Equipping global mining for over 50 years
“Many of our engineers have been with us for 20 to 30 years and they are always coming up with new and innovative ideas for products, like our two-piece excavator bucket. People make the business and if you look after your people, you will have a great business.”
Austin Engineering is one of this country’s great success stories. Since it first commenced operations 50 years ago, the Brisbane-headquartered engineering and manufacturing company and AMTIL member has grown rapidly. Today it is an ASX-listed business with an annual turnover of $250m, employing 1,800 people worldwide with operations across Australia, Asia, and North and South America. David Pichanick, the company’s Global Manager – Market Development & Innovation, says: “For over 50 years, Austin Engineering has been developing customdesigned products for both the Australian and global mining industry, as well as for original equipment manufacturers (OEMs). “In the mining equipment game, large global mining OEMs like Caterpillar and Komatsu don’t really know which country or mining site their products will go to, as they are sent around the world. So, the OEMs might make a generic dump body of 1.8 to 2.1 tonnes per cubic metre and that’s where companies like Austin comes in. We work closely with metal manufacturers to customise the generic dump body for the particular mineral and client. “Each mining site has different requirements, whether it be a small miner or large multinationals like BHP, Rio Tinto and Glencore. We have to consistently innovate to maximise the size of the payload and reduce the overall cost per tonne to increase productivity and value-add for the client.” Austin’s manufacturing sites are located in Perth and Mackay plus overseas in Indonesia, North and South America. Its
engineering centres in Australia and North America form one global engineering operation focused on R&D for new innovative products. Pichanick speaks excitedly about one of Austin’s recent innovative products: “Our unique two-piece excavator bucket won the 2019 People’s Choice Award and was second overall in the prestigious 2019 Swedish Steel Award. This two-piece bucket system was developed after BHP challenged us to produce a safer alternative to the one-piece bucket. BHP has been so pleased with the innovative product, that it has entered it in this year’s WA WorkSafe safety awards.” The bucket features a reusable upper section and a consumable lower section, designed for quick and safe bucket change during scheduled maintenance intervals. Austin’s top seller is its range of dump truck bodies, which comprises 80% of the company’s sales globally. “We have many designs of those truck bodies and there’s probably one of them at every mining site around the world,” says Pichanick. “We have produced around 12,000 truck bodies in our 50 years of operation. “Our truck bodies that go on the back of dump trucks maximise the pay load, carrying as much dirt as possible. The load from our ‘flow-control’ truck bodies empties slightly slower than other designs; however, slower dumping prevents the truck from lifting the front wheels off the ground and it controls the flow of material into mining hoppers. We offer the lowest cost of ownership for the customer, which ultimately increases their pay margin.
The COVID-19 crisis has presented Austin, like most businesses, with a host of new challenges, such as how it communicates with its teams around the world. “We use Microsoft Teams, which is very effective and easy to use for communications with our Australian and global sites,” says Pichanick. “COVID-19 has made us a lot more aware of our processes of looking after our people and some of our technical people are working from home. Our factories are still operating, except Colombia and Peru, as those countries are in lockdown.” For the future, Austin’s plans entail extending its already-impressive global footprint: “We want to grow, expand and set up in other countries. Austin has just signed a Memorandum of Understanding (MOU) with the large South African mining equipment company Engineering Top Tech (ETT). They plan to sell our products across Africa and we will sell theirs globally. “Mining is the backbone of Australia and it continues to make the resources the world needs,” Pichanick adds. “As a mining equipment manufacturer, we have to constantly come up with new ways to improve products for our customers.” This article’s author Carole Goldsmith has shares in BHP. www.minexcrc.com.au www.oreflow.com.au www.austineng.com
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Mining to help dig economy out of COVID-19 hole South Australia’s mining sector is well placed to play a crucial role in helping the state’s economy off the floor at the conclusion of the COVID-19 crisis, writes Andrew Spence. According to figures from the South Australian Chamber of Mining and Energy, royalties paid to the State Government are projected to reach $325m for the 2019/20 financial year, up from $299m the previous financial year and $207m in 2015/16. Jobs in the sector in SA have also grown to reach 27,200 direct and non-direct employees this year and have been boosted in recent times by more than 1,000 direct construction and production jobs at Oz Minerals’ new Carrapateena copper/gold mine, 160km north of Port Augusta. While global commodity prices, which are calculated in US dollars, have dipped in the past few months, this has been largely offset locally by a slump in the value of the Australian dollar to some of the lowest levels in almost two decades. A global survey of 2,400 explorers, developers and other mining-related companies was released in February and listed SA as the sixth-most attractive jurisdiction in the world for mining investment, up from 24th in 2018. The Fraser Institute Survey of Mining Companies 2019 ranking for SA was the first time the state had been recognised in the Top Ten since 2015, when it was ranked 10th of 109 jurisdictions. In the 2019 survey, Western Australia was ranked Number One ahead of Finland and Nevada. In November, PwC released its annual overview of Australia’s 50 biggest mid-tier mining companies, Aussie Mine 2019. The report into the largest ASX mining companies with a market capitalisation of less than $5bn at 30 June 2019 found revenues of the publicly listed companies increased by 28% on 2018 and their combined market capitalisation had reached its highest level since 2011. While market caps have reduced in the past couple of months as stock markets around the world suffer through the coronavirus crisis, the pandemic is yet to significantly slow production at SA’s major mines. In 2019, the state produced about $4.5bn worth of minerals, led by copper, which accounted for about 50% of the value, followed by gold and iron ore. SA is also a major producer of uranium, hosting four of the six approved uranium mines in Australia, which generated more than $500m in revenue last year. PwC partner Andrew Forman said the rise in royalties in recent years was a result of increases in both production and sale prices: “What we’ve seen in the last few years in SA is both of those things:
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Underground at Oz Minerals’ Prominent Hill mine in South Australia
increases in production, and also a steady increase in commodity prices, which have pulled back a little bit in recent weeks but by and large we’re still in a pretty reasonable position and that position has improved. “The Australian dollar has declined pretty significantly over the course of this calendar year already and pretty much all commodity prices are in US dollars and once you convert that to Australian dollars, it does represent a pretty significant cushion to prices received by Australian producers of mineral commodities. “While commodity prices have come down a little in recent months from a reasonably good level, I suspect that has largely been cushioned by the decrease in the Australian dollar over the same period.” Forman said that, though the mining gains of the past few years could not be classified as a boom, the degree of caution around investments showed the memories of the tough times following the last mining boom were still fresh in the minds of many in the industry. While times have been uncertain, Forman maintains there is still potential for further growth in this mining cycle. “I would have said that we are still moving in a positive direction towards a peak, and in my experience, we are not at a position where we are seeing irrational or overexuberant investments,” said Forman. “This build-up feels like it has been a bit more rational and structured than where we got to in the 2006 to 2010 period, when commodity prices reached high levels and we invested in some projects we shouldn’t have as an industry. “The hope or the plan is that mining companies, like all companies, will have to bunker down a little bit during this period because we are in a period of lower confidence and we are in a period where prices will come off a little bit. But we certainly hope that is only temporary, and at some point in the future we’ll move back
to the position we were in a few months ago, which is a position where the industry is poised for significant growth including within SA.” The SA Government launched its Copper Strategy in February 2016, which aims to triple the state’s copper production to one million tonnes per year within two decades. In March the State Government also announced it would defer costs linked to exploration and licence fees for the minerals and petroleum sectors to alleviate the impact on industry of coronavirus containment measures. In addition, there is a 12-month waiver of committed expenditure for all mineral exploration licence holders. The state has also recently completed the Gawler Craton Airborne Survey, which captured approximately 1.8 million line kilometres of data over an area of about 324,000 square kilometres – the size of Norway – and is the largest survey of its kind to be done in Australia and possibly the world. The survey aims to help explorers discover new deposits in the region, which is already home to large-scale copper/ gold mines Olympic Dam, Prominent Hill and Carrapateena. BHP announced in November 2018 it had made a huge copper/gold discovery at Oak Dam West, 65km south of its Olympic Dam operation. Forman said the Government’s focus on copper was justified but significant new projects would need to commence if it was to go anywhere near achieving its copper target. “We have some very large copper deposits being mined at present and we have a large state by area and there’s a lot of prospectivity in relation to copper,” he said. “By virtue of those facts, it is a strategy that makes a lot of sense, but I think we would need to discover and develop new deposits in order to be trending towards that sort of target. Generally, we are underweight, and the opportunities are good, so we are well positioned for some large new mining projects.”
MINING & RESOURCES The South Australian Chamber of Mining and Energy (SACOME) has been the industry’s peak body in the state for the past 40 years. SACOME CEO Rebecca Knol said the resources sector now contributed 50% of the state’s exports and its workforce was “growing at pace”. She said the recent high ranking in the Fraser Institute Survey had allowed the state’s mining industry to start the decade on a high note. “This result will provide positive momentum for the SA resources sector, which is already the engine room of the SA economy and drives innovation and employment for the state,” said Knol. “In addition, the resources sector is expected to provide $325m in royalties to the State Government in the coming year – cash to contribute to the building of roads, schools and hospitals.” As many industries struggle through COVID-19, mining in SA has so far proven resilient. Knol said the resources sector had been defined as an essential service and was taking steps to protect workers and communities from the spread of COVID-19 by implementing measures such as health monitoring, regular cleaning, physical distancing, travel limits and shift changes. “Our sector is continuing to generate revenue for the state thereby contributing financially to the economic stimulus
packages provided by the (Premier Steven) Marshall Government to businesses and workers affected by the restrictions,” she said. “This revenue stream is critically important for the state during the crisis and will remain so throughout recovery and beyond. “With a proven track record of adaptability and resilience in difficult times, the resources sector is dynamic and innovative, it embraces change and it leads the way. It will be key to SA’s economic recovery.” BHP, which operates the state’s largest mine at Olympic Dam, is employing an additional 1,500 people across Australia for the next six months to help it maintain production through the pandemic. The company charters more than 40 flights from Adelaide Airport every week to transport thousands of its workers to Roxby Downs near Olympic Dam. In March it adopted new body temperature screening procedures at Adelaide Airport to screen its passengers before boarding. Under the new protocols, passengers recording 38 degrees Celsius or above on a thermal camera will be asked to take a secondary test using a thermometer. Anyone still recording an elevated temperature will not be permitted to board the flight until they obtain a medical certificate saying they are fit to fly.
In a statement to the ASX, Oz Minerals announced it had so far not experienced any production impacts as a result of the virus at its two SA mines, Prominent Hill and Carrapateena. The company is also increasing its ore stockpiles to safeguard production against any worsening of conditions. Oz Minerals Chief Executive Andre Cole said with more than 85% of the Australian sites’ workforce based in SA, the state’s border closure would have limited impact on the continued operation of Carrapateena and Prominent Hill. In its statement, Oz Minerals also said the AU$ copper price had proved resilient against a deteriorating US$ spot price, and with the vast majority of the core Australian operations’ cost base being AUD$ sourced, the lower AUD$ has provided an effective hedge against US$ based revenues. It said demand for copper-intensive items such as air conditioners and cars has begun to improve in China in recent weeks, while the broader market has also been impacted by the temporary reduction in copper concentrate supply from major producing countries in South America and Africa. www.theleadsouthaustralia.com.au
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Critical minerals are vital for renewable energy. We must learn to mine them responsibly As the world shifts away from fossil fuels, we will need to produce enormous numbers of wind turbines, solar panels, electric vehicles and batteries. Demand for materials needed to build them will skyrocket, writes Bénédicte Cenki-Tok. These materials include common industrial metals such as steel and copper, but also less familiar minerals such as the lithium used in rechargeable batteries and the rare earth elements used in the powerful magnets required by wind turbines and electric cars. Production of many of these critical minerals has grown enormously over the past decade with no sign of slowing down. Australia is well placed to take advantage of this growth – some claim we are on the cusp of a rare earths boom – but unless we learn how to do it in a responsible manner, we will only create a new environmental crisis.
What are critical minerals? “Critical minerals” are metals and non-metals that are essential for our economic future but whose supply may be uncertain. Their supply may be threatened by geopolitics, geological accessibility, legislation, economic rules or other factors. One consequence of a massive transition to renewables will be a drastic increase not only in the consumption of raw materials (including concrete, steel, aluminium, copper and glass) but also in the diversity of materials used. Three centuries ago, the technologies used by humanity required half a dozen metals. Today we use more than 50, spanning almost the entire periodic table. However, like fossil fuels, minerals are finite. If we take a traditional approach to mining critical minerals, in a few decades they will run out – and we will face a new environmental crisis. At the same time, it is still unclear how we will secure supply of these minerals as demand surges. This is further complicated by geopolitics. China is a major producer, accounting for more than 60% of rare earth elements, and significant amounts of tungsten, bismuth and germanium. This makes other countries, including Australia, dependent on China, and also means the environmental pollution due to mining occurs in China. The opportunity for Australia is to produce its own minerals, and to do so in a way that minimises environmental harm and is sustainable.
Where to mine? Australia has well-established resources in base metals (such as gold, iron, copper, zinc and lead) and presents an outstanding potential in critical minerals. Australia already produces almost half of lithium worldwide, for example. In recent years, Geoscience Australia and several universities have focused research on determining which critical minerals are associated with specific base ores. For example, the critical minerals gallium and indium are commonly found as by-products in deposits of lead and zinc. To work out the best places to look for critical minerals, we will need to understand the geological processes that create concentrations of them in the Earth’s crust. Critical minerals are mostly located in magmatic rocks, which originate from the Earth’s mantle, and metamorphic rocks, which have been transformed during the formation of mountains. Understanding these rocks is key to finding critical minerals and recovering them from the bulk ores. For most Western economies, rare earth elements are the most vital. These have electromagnetic properties that make them essential for permanent magnets, rechargeable batteries, catalytic converters, LCD screens and more. Australia shows a great potential in various deposit types across all states. The Northern Territory is leading
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with the Nolans Bore mine already in early-stage operations. But many other minerals are vital to economies like ours. Cobalt and lithium are essential to ion batteries. Gallium is used in photodetectors and photovoltaics systems. Indium is used for its conductive properties in screens. Critical minerals mining is seen now as an unprecedented economic opportunity for exploration, extraction and exportation. Recent agreements to secure supply to the US opens new avenues for the Australian mining industry.
How can we make it sustainable? Beyond the economic opportunity, this is also an environmental one. Australia has the chance to set an example to the world of how to make the supply of critical minerals sustainable. The question is: are we willing to? Many of the techniques for creating sustainable minerals supply still need to be invented. We must invest in geosciences, create new tools for exploration, extraction, beneficiation and recovery, treat the leftover material from mining as a resource instead of waste, develop urban mining and find substitutes and effective recycling procedures. In short, we must develop an integrated approach to the circular economy of critical minerals. One potential example to follow here is the European EURARE project, initiated a decade ago to secure a future supply of rare earth elements. More than ever, we need to bridge the gap between disciplines and create new synergies to make a sustainable future. It is essential to act now for a better planet. Bénédicte Cenki-Tok is an Associate Professor at Montpellier University, France, and an EU H2020 MSCA visiting researcher at Sydney University. This article was originally published by The Conversation. www.theconversation.com www.sydney.edu.au
MINING & RESOURCES
Study examines fracking impacts on air, soil, groundwater and waterways A three-year study into the air, water and soil impacts of hydraulic fracturing, or fracking, in Queensland has found little-to-no impact on air quality, soils, groundwater and waterways. The study also found current technology used for treating water produced from coal seam gas wells is effective in removing fracking chemicals and naturally occurring (geogenic) chemicals to within relevant water quality guidelines. Research objectives for Air, Water and Soil Impacts of Hydraulic Fracturing in the Surat Basin, Queensland, by the CSIRO’s Gas Industry Social and Environmental Research Alliance (GISERA), were developed in response to community concerns about the potential for fracking chemicals to affect air quality, soils and water resources. The study analysed air, water and soil samples before, during and up to six months after hydraulic fracturing operations at six coal seam gas wells in the Surat Basin in Queensland. GISERA Director Dr Damian Barrett said the research was an Australian first and provided unique insights into fracking’s impacts in Australia: “This new research provides valuable data about hydraulic fracturing in coal seam gas formations in the Surat Basin. Previously, the only information about hydraulic fracturing was from overseas studies in quite different shale gas formations. Clearly governance, industry regulation and operational integrity are crucial in managing risk and potential impacts of hydraulic fracturing.”
Air quality monitoring found fracking operations had little-to-no impact on air quality, with minimal variation between operational sites and control sites where no fracking activities occurred. Levels of atmospheric air pollutants were generally below national air quality objectives. Increased levels of airborne particles were associated with dust from vehicles. Fracking chemicals were not detected in water samples taken from nearby groundwater bores, sites adjacent to operational wells, or a nearby creek. Current water treatment operations are effective in removing fracking chemicals and geogenic chemicals completely, or reducing levels to within water quality guidelines. Some biocides used in fracking fluids and some geogenic chemicals were completely degraded in soil samples within two to three days. Soil microbial activity was reduced by the addition of fracking fluids and produced water. GISERA is a collaboration between CSIRO, the federal and state governments, and industry to undertake publicly reported independent research. GISERA’s purpose is to provide quality-assured scientific research and information to communities living in gas development regions focusing on social and environmental topics. gisera.csiro.au
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FLSmidth ABON gears up with Mazak and hyperMILL The FLSmidth ABON brand has been synonymous with reliable, heavy-duty mining equipment for more than 50 years, and combined with the company’s 135 years of experience, provides customers with increased output and quality, reduced total cost of ownership, and optimised productivity. FLSmidth ABON is a leading manufacturer of low-speed sizers, roller screens and chain feeders for the worldwide mining industry. The company’s products are mainly used in mining operations of mineral resources such as a coal, iron ore and copper, and are also used in various industries such as quarry applications, smelter applications, fertiliser production, or cement plants. To stay competitive in the global arena, FLSmidth ABON has strived to remain at the forefront of manufacturing technology. The company has long been no stranger to the power, versatility and userfriendliness of Mazak multi-tasking machines - having used them over a decade to produce complex high-quality parts in a minimum number of operations. And the team has been highly successful in utilising the Mazatrol programming system to achieve this. Successful companies seldom rest on their laurels, and do not shy away from a challenge. Recently FLSmidth ABON found a new challenge in the form of a very critical operation that could not be performed on its existing multi-tasking machines. The reason was not only the extremely complex technology involved, but also the lack of a successful precedent in producing dimensionally correct, geometrically true gears of various kinds on a general-purpose multi-tasking machine. FLSmidth ABON had been a proud customer of John Hart and Mazak for a long time and it was very familiar with the technology and support that John Hart offers. Based on positive past experiences, FLSmidth ABON decided to put its faith in John Hart and Mazak once again, embarking on a journey, the successful conclusion of which has made the company a part of Australian engineering folklore and a jewel in the Victorian manufacturing industry’s crown. Working in partnership with John Hart and Mazak, the team at FLSmidth ABON utilised Mazak’s Smooth Gear Machining software suite to machine external and internal gears using a range of techniques including gear hobbing, skiving, shaping and milling. Mazak’s Smooth Gear Machining software allows for the conversational input of project parameters on the Mazatrol SmoothX CNC machine controls, making it easy for virtually any operator to handle gear-related projects with Mazak Smooth Gear Milling, Hobbing and Skiving functions to machine parallel-axis OD, ID and spline-type gears. These advanced gear-making applications require no 3D models or programming steps. Instead, operators can simply enter the workpiece parameters into a conversational dashboard interface and the software will create the necessary machine instructions. Operators can then modify tooth profiles and leads, set up edge tapers, and take advantage of Mazak Smooth Gear Machining’s sub-micron profiling capabilities. FLSmidth ABON had been programming on the machine utilising the Mazatrol conversational programming system. However, a CAM system was also required to complement Mazatrol. The team’s objective to have flexibility and failsafe processing alternatives prompted them to search for a reliable high-performance CAM system. As the authorised Australian reseller of hyperMILL, John Hart introduced the software to the company. After looking at a few CAM systems, FLSmidth ABON selected hyperMILL, having reached the conclusion that it was the leading CAM software available due to its cutting-edge technology as well the high level of support available through John Hart. For FLSmidth ABON, no other system had features that could match hyperMILL, which offered the best post-processors and dynamic collision checking. Key criteria included surface quality, time savings, tool life,
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machine performance and increased efficiency, while fast, reliable and collision-free tool paths along with error free G code output were the main advantages. Factors such as these all contribute towards increased productivity, increased efficiency, better quality, better tool life and smoother machine operation. The combination of machine tool capability, processing design and hyperMILL meant that in-process time was significantly reduced. In addition, hyperMILL MAXX Machining proved to be helpful in reducing finishing and roughing times. To have synergy between CAD, CAM, post-processor and the machine had been one of the key selection criteria. FLSmidth ABON realised that the lack of even one of these features could set the process back a long way. hyperMILL together with the ongoing and reliable technical support from John Hart engineers, had the team at FLSmidth ABON assured about successfully fulfilling their manufacturing requirements. www.johnhart.com.au www.flsmidth.com
MINING & RESOURCES
Hydraulink hoses optimise safety for underground mining project Australian Certified Winches (ACW) has used Hydraulink to provide and install hydraulic hoses and fittings optimised by expert hydraulic engineering required for an innovative new underground winch developed for major mining leader BHP. BHP tasked ACW with designing a winch that could haul double the capacity, 100 tonnes, within the same physical space as its previous 50-tonnes winch, for one of its major Australian underground mining operations. “The solution was to integrate two 350,000Nm wheel drives inside the winch drum,” said Grant Barrett, Director of ACW, who has more than 25 years’ experience in designing and building industrial winches. “The winch is to be used to remove longwall machines once the longwall is finished and being moved to another seam. Current methods involve the use of hydraulic cylinders, but these can be limited in stroke length, meaning a lot more time rerigging the haul rope. The winch has 300m of rope, allowing for a continuous haul.” ACW focuses particularly on ensuring winches are suited to the particular task, and have the correct documentation and certification to operate under any appropriate regulations. “The new winch has an onboard closed loop hydraulic system that is driven by the underground emulsion fluid, so we needed expert hydraulics assistance in engineering the winch for underground use,” said Barrett. “So we contacted Hydraulink, and their team ensured all hydraulic hoses and fittings were MDG-41 (Mechanical Design Guideline 41) compliant – including all testing and reporting – which is a requirement for any machinery being used in underground mining applications.”
MDG-41 outlines safe working practices for the manufacture and assembly of high-pressure hoses and fittings, including hazard identification, assessment, elimination and reviewing of risk. As a leading hydraulic hose, fittings and service specialist with more than 400 service points across Australia, New Zealand and Oceania, Hydraulink regularly supplies hydraulic components that comply with local standards. “The service from Hydraulink was fantastic,” said Barrett. “They were responsive, practical-minded, safety-oriented and worked well with my team. I’ll be looking to them for any future Hydraulic hose, fittings, adaptors or service needs.” Adrian Burgess, Area Sales Manager – Queensland at Hydraulink, was delighted to help ACW on this innovative project: “I was impressed with ACW’s standards and safety compliance focus, and the solution they came up with for this new winch was an outstanding piece of engineering. We were happy to be part of this project and to work side by side with another company that values safety as highly as we do. To make service and maintenance simpler in the future, we’ve set up all the hoses and parts used in this winch with individual part numbers in our system. If ACW need to replace a part in the future, we’ll have all the specifications on file, ready to go.” The new winch has now been factory tested using a 150-tonnes load cell and shackles, where it pulled 120 tonnes with ease. www.hydraulink.com.au
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MINING & RESOURCES
Boral Logistics invests in MaxiTRANS AZMEB side tipper road trains When Boral Logistics recently decided to replace its aged fleet of side tippers, it turned to MaxiTRANS to help find the ideal solution to distribute its quarry products throughout Western Queensland. Investing in a new AZMEB door side tipper road train combination enabled it to perform the task safely and efficiently. MaxiTRANS is one of Australia’s largest suppliers of truck and trailer parts to the road transport industry in Australia. It is also the largest supplier of locally manufactured, high-quality heavy road transport trailer solutions, including trailer repair and service, in Australia and New Zealand. The AZMEB Door Side Tipper AB-triple road train combination is the first of a number that are due to be delivered to Boral Logistics, with the first unit being put to work in the long-distance delivery of quarry material throughout Western Queensland from the Boral Wellcamp Quarry. Boral operates around 70 quarries, metropolitan and regional, throughout Australia. The Wellcamp Quarry, west of Toowoomba, extracts and processes a wide range of product, particularly highly specified road base aggregate. Wade Clark, Operations Manager of Boral Logistics Queensland, says Boral’s road train combinations play an important part of the transport logistics operation on the Darling Downs and beyond. Moreover, the AZMEB trailers fill the company’s need for its side tipper application. “Our current road train fleet is entirely AZMEB, and for the amount of investment in a combination like this, it is very important we invest in a known product, so for us we stuck with the brand we knew and trusted,” says Clark. “The existing fleet of AZMEB trailers are in the order of 25 years old. We know they are reliable, we know that the product works. It comes with longevity, so we wanted to reinvest in a product that we knew worked extremely well for Boral’s needs.” According to Clark, Longevity, safety, fit for purpose, and interchangeability with the multiple combinations are the driving design criteria for Boral. “We can move the two B-trailers from front to back,” he explains. “The A-trailer has a sliding turntable that allows us to conform to our bridge formulas and axle measurements. This is so we can load full mass whether as an AB-triple or as a B-double. Even as a single, we conform to load and mass requirements.” The Toowoomba region is open to Type 1 road trains, which means the AZMEB combination can be loaded and run west directly out of the quarry without any requirement to split the combination up.
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AZMEB Door Side Tippers are built in one piece from a 450 grade wear plate, which increases the strength and eliminates the need for cross members. Unique to the design, AZMEB Door Side Tippers distribute the load quickly and evenly with a single double-acting hydraulic cylinder at each end of the bowl. Moreover, largecapacity hydraulic hoses and valves maintain the rapid, yet smooth, tipping action.
Safety is integral to the Boral operating philosophy. Telescopic ladders are fitted for the driver to use when hooking up or changing trailers, while the addition of handrails provide three points of contact all the way through the climbing process. The drawbar of the tri-axle dolly is painted in high-visibility yellow as a safety measure for all road users. Non-slip surfaces are used on walkways wherever the driver has to work on the trailers.
For Boral, side tipping is essential for a safer and more productive operation.
As the Queensland Operations Manager for Boral Logistics, Clark says he is more than happy with the working relationship with MaxiTRANS, adding that the convenience of being locally manufactured in Brisbane enabled Boral to be closely involved in the whole build process, in turn fostering a fantastic partnership with MaxiTRANS.
“A lot of our road base jobs are on the main highways west of Toowoomba,” says Clark. “The big benefit we can offer customers is that power lines don’t phase this combination and we are not limited by un-level ground. We can basically pull up on the side of the highway and tip straight off the edge of the road. Also by running out the material in an even flow it reduces the work time required for customer grader drivers.”
“The team at MaxiTRANS was terrific,” he says. “They listened and worked with us to deliver to our requirements.” www.maxitrans.com
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IMTS Machinery – Partnering in productivity IMTS Machinery has built its reputation as a specialist in the delivery of world-class sheetmetal and laser cutting products by building strong long-lasting partnerships with its suppliers and its customers. By Dee Rudebeck. Shortly after beginning work at Melbourne’s IMTS Machinery in 2006, Simon Stain made his first phone call to the company’s supplier, Prima Power in Italy, to introduce himself to his contact, Marco Daimo. Remarkably, 14 years later, it is still Marco who Simon calls at the Prima Power headquarters in Turin today, several times a month. Not only have the pair formed a watertight working relationship during that time, but they have a strong friendship. IMTS Machinery may be a leading supplier of world-class sheetmetal and laser cutting products and the sole agent for Prima Power systems in Australia. However, it is the company’s focus on relationships and longevity of experience that really sets it apart in the sheet metal fabrication market. Now business development manager at IMTS, Simon says that before coronavirus, he and Marco probably saw each other four or five times a year. “Sometimes I would take clients to Europe for a product demonstration or Marco would come here to talk through a new system with our customers,” says Simon. “Being Italian, it’s almost like we’re family, as opposed to business. We don’t sit down and talk over a desk, it’s over a meal and often with our partners and family.” This sense of long-standing connections is vitally important to IMTS because the purchase of one of its precision systems is not a one-off transaction, but the beginning of an ongoing relationship with their customer. Simon says that for new customers, they usually allow 9-12 months of regular contact from the time of purchase to the point where “the client is comfortable running the machine to its full potential”. Helping clients achieve optimal performance of their machines is a key objective for IMTS.
Working out requirements Buying machinery from IMTS begins with a thorough consultation service, helping the customer to decide on the best solution for their needs based on their particular work and budget, which could start from $200,000 and upwards. Once an order is placed, it takes around three months for Prima Power to manufacture the machine, depending on size, and up to five weeks for it to be shipped to Australia. Then IMTS begins the installation, which can take from one to four weeks and involve two or three people on site and a number of cranes and forklifts.
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IMTS’ recent installation for air conditioning manufacturer Actron Air was possibly the largest system of its type installed in the Southern Hemisphere.
“After that, it’s the start-up phase, where we set up the machine’s parameters and then the training, when we take the customer through operating the machine and the programming software,” says Simon. “After the customer begins full-blown production, we like to follow up three to six months later to check everything is going okay or to see if they need any refresher training.” Then the relationship shifts to annual scheduled maintenance visits, unless issues arise in between. The machinery that IMTS can supply includes turret punches, press brakes and panel benders as well as laser cutting systems and large automation systems to connect machines together. The turret punches and panel benders are for lighter sheetmetal, up to 8mm but generally 3mm and below. The laser-cutting systems are for metal from 1mm up to 20 or 25mm for general fabrication or engineering components. IMTS customers include Actron Air in Sydney, Daikin Australia in Sydney, and Glyde Metal Industries in Dandenong – a long-standing customer where IMTS has recently installed a Laser Genius with a 10kW fibre laser and a 21-shelf tower automation system – along with many other small- and large-scale manufacturers.
One-stop shop Founded in 1994 by Peter Tucker, IMTS went from a one-man servicing show to a highly specialised outfit of technicians virtually overnight when Prima Power approached Peter in 2002 to be their exclusive agent of its systems in Australia and New Zealand. Peter is still Managing Director and also involved in servicing and installation. Simon says that due to technological developments, the machines need less
servicing than in years past and the team at IMTS is smaller but more multi-skilled. Simon himself often project manages installation and training and says that customers like to see the person who sold them the machine is leading the project from start to finish. He believes that along with the team’s longevity of service, the fact that IMTS focuses on only one brand gives them an edge because they know the Prima Power systems inside out. “Prima Power is a very high-quality brand,” explains Simon. “They’re one of the biggest sheet metal manufacturers in the world, so it is that level of relationship that we’ve got with them, along with the range and quality of their machinery that has kept us exclusively supplying their product.” Simon jokes that he and his colleagues have all racked up long-service leave at IMTS and each have at least 15 to 20 years’ experience in the laser and sheetmetal industry – Peter himself has close to 35. “We are one of the longest-serving sales agents for Prima Power in the world and they refer to us as an official partner, which they haven’t done for any other dealer. We are very highly experienced with their machinery.” It’s worth noting that there are many subsidiaries within the Prima Industrie group, such as Prima Electro, which manufactures hardware such as the machine servo-drives and CNC systems, along with the HMI software. The overall Prima Industrie group has a staff of around 2,000 and production plants in Italy (Turin and Cologna Veneta ) and in Seinajoki, Finland. “Therefore, as a group Prima Power is a one-stop shop, which means that IMTS is a one-stop shop,” says Simon. “If there is problem with a machine or questions about applications, you don’t get the run-around and get sent elsewhere because another
FORMING & FABRICATION Simon Stain, Business Development Manager at IMTS Machinery, (left) with Mark Wood, General Manager of Glyde Metal Industries.
manufacturer made the part or developed the software. We’ve probably got half a million dollars’ worth of spare parts, always in stock in Melbourne, and can get anything else within a few days.”
Upgrade at Actron Air One exception to standard IMTS project timeframes was a job for air conditioning manufacturer Actron Air, which was unlike any other in scale – possibly the largest system of its type installed in the Southern Hemisphere. Actron Air was looking to significantly increase its output at the same time as completely replacing its manufacturing system, which meant the installation had to go smoothly to minimise disruption to output schedules. IMTS competed with other suppliers in a process that took nearly two years, but in May 2016 Actron Air committed to the $10m system with IMTS and Prima Power. The installation began in early 2018 and lasted six months, compared to the average two weeks. The fully automatic materialhandling solution includes three turret punches, an automatic panel bender, and a Night Train flexible manufacturing system with 300 storage cassettes holding up to 900 tonnes of material with a crane that feeds into the four machines. It covers 60m x 30m of floor space, with a height of 8m. “The advantage for us is that we’ve significantly reduced the amount of forklift traffic and manual handling we need, and we’ve got much better utilisation of our
space,” says Jon Maddox, Operations Manager at Actron Air. “We would have needed three or four guys before to load materials in and out of punches and folders throughout the process, which all took time. Now we load the material in once and that’s the end of it. “Effectively with the performance and efficiency of the Prima Power system, we’ve increased our overall capacity to 170% on what we had before. And we’re doing that with five less heads.” After a tricky first six months of integrating software and connectivity issues, the system began to shine. “By the end of the six months, we were kicking goals and starting to do very well,” says Jon. “It’s been consistent ever since. It’s a been a very good investment for us.” The Actron Air system was a milestone installation that Simon says shows IMTS is more than capable of these large-scale installations. Although sales at the moment have taken a hit due to coronavirus, Simon is still receiving many enquiries per week. “The inquiry level is still there, so we’ve just got look after our customers the best we can utilising the technology available to us,” he remarks. “We’re remotely working from home and continuing to support our customers as best as we can.” Simon says that a lot of IMTS support and service was provide online or over the phone previously, using programs such as Team Viewer: “The systems have internal cameras, so we can log on to
them and diagnose issues remotely. The new machines are moving to Industry 4.0, so they are self-reporting and sending diagnoses continuously to the Cloud. This means that if the machine recognises something is going wrong in itself, it reports to us and we ring the customer to let them know.” The plans for IMTS in the next two years involve a big push to grow the business, starting with an expansion of the sales team. Meanwhile, Simon still plans to play a part in installations. “I’m trained as a toolmaker and I’m a very hands-on person,” says Simon. “Once we’ve made a sale, I don’t just move on to the next one. I enjoy putting a lot of focus into the customer and the overall project. When we’re doing an installation, towards the end of the training, we’ll often go for dinner with the customer and try to keep that family feeling that IMTS gets from Prima going with our customers as well.” It all comes back to making relationships the heart of the business and being committed to the future together. “Because Marco and I have known each other so long, we can have a conversation with real depth, and not just about business,” says Simon. “We know each other’s families. At the end of the day, Prima Power and IMTS like to look after each other and our reputations, and that means looking out for our customers too.” www.imts.com.au www.glydemetal.com.au www.actronair.com.au
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On-shoring – Let’s keep manufacturing returning to Australia Based in New South Wales, Sheet Metal Solutions recently completed the installation of a TRUMPF TruLaser 5040 Fibre (L76) laser supplied by Headland Machinery. Luke Williams, Head Programmer at Sheet Metal Solutions, shared his thoughts on the new machine and on the outlook for Australian manufacturing. AMT: Tell us a little bit about Sheet Metal Solutions (SMS) and what you do. Luke Williams: We provide sheet metal cutting and bending services to a wide variety of businesses and within various industries. We service agriculture, engineering, construction, mining, architectural, transport and trucking SMS has been in business since 2007. We received our first TRUMPF laser in January 2010, which is when I joined. I’ve been working with lasers and programming ever since. While originally I was thrown in the deep end at the time, I do love working with the laser technology. Over the past ten years I’ve received extensive software training on-the-job and acquired the skills to run the machines for the greatest productivity. I also schedule the work for the bending machines and help run the entire factory’s production. AMT: How has the company evolved over the years? LW: Over the past 10 years SMS has grown organically. We do try and control the growth so that we can adequately service our customers. In terms of advertising for the work, we have a client list and advertise on our website and leverage existing relationships. Our main clientele is in New South Wales, although some of our customers have branches interstate. AMT: What industries do you specialise in or focus on? LW: Within the agricultural industry we provide components and accessories for specialised machines and attachments, Within construction, we help companies with scaffolding products – although this work is seasonal and currently down, when work does come in, the volume is high with tight deadlines. Within transport and the truck companies, we do all the parts that go onto trucks, brackets, curtain runners, and so on. In mining, we provide all the sheet metal work around mining vehicles, conveyors systems, ventilation systems; this industry has slowed down a fair bit, although in 2019 it made up a large volume of our workload. We’d like to service the defence (combat vehicles and submarines) and medical industries (medical Equipment) in the future. There seems to be a lot of work currently in those industries and would be something we can service well.
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AMT:: What do you see as the keys to your success? LW: Success for us is based around new technology, communication and providing superior products. Investing and keeping up with new technology is key, otherwise you get left behind. And communication, we keep in close contact with our customers to ensure they are happy. We also provide a great product. It’s presented nicely, it’s accurate and has met within their required lead times. Lead times are critical in this industry and we can provide fast turnaround, especially within our laser cutting and bending divisions. AMT: Tell us about your recent purchase of the TRUMPF TruLaser 5040 Fibre (L76)? LW: We purchased the TRUMPF fibre laser to keep up with our workload. We were constantly doing overtime and we needed to increase our capacity. We also wanted to cut thicker aluminium and a variety of different materials. This machine gave us that capacity and capability. It also meant we could cut much faster. AMT: So why did you opt for TRUMPF technology? LW: We didn’t look at many other brands to be honest. We know TRUMPF and we’re used to it. We also know the Headland service team is there and they know what they are doing – they are quick to respond and very knowledgeable. So it was easy for us to choose TRUMPF.
Above: Luke Williams, Head Programmer at SMS, (left) and his father, SMS founder Grant Williams, with the new TRUMPF 5040 fibre laser.
The TRUMPF 5040 fibre laser.
AMT: What are your thoughts on the manufacturing industry in Australia? LW: Business sentiment is good at the moment; we are busy and seeing a lot of manufacturing previously outsourced overseas coming back to our shores due to the current pandemic. Let’s hope it comes back in full swing after the coronavirus has passed. I hope the current trend of onshoring continues, with more and more manufacturing coming back to Australia. I also think it’s essential for Australian manufacturers to keep up with technology to ensure we can manufacture efficiently and competitively. www.headland.com.au www.sheetmetalnsw.com.au
MATERIAL REMOVAL
Hydrafeed Barfeeder boosts efficiency, productivity at Maltec Engineering Locally owned and operated in Burnie, Tasmania, Maltec Engineering is a family business dedicated to providing state-of-the-art engineering services to clients across a broad range of industries including mining, food, agriculture, construction, forestry, and more. Founded in 2002 by Lindsay and Kelly Malley, the company is a contract manufacturer specialising in CNC machining and smallto-medium fabrication. Its extensive range of services also include profile cutting, a robot welding cell, sandblasting and painting utilising both advanced and Lean manufacturing principles. Hydraulic manifolds, tapping blocks, drive shafts, hardened pins and bearings and small-to-medium fabricated assemblies are some of the most common products that are manufactured by Maltec. Maltec’s broad engineering capabilities are evident in some of the more unusual products that the company has manufactured; these include a spear tip, a nozzle for a hydroelectric project and several dog enclosures for Tasmania Police. The company’s client base comprises 40% local, and 60% mainland Australia and overseas. Maltec’s customer base includes many well-known companies such as Caterpillar Underground Mining, Epiroc (formerly Atlas Copco), Elphinstone (CAT OEM, Haulmax, Railmax, SVS) and AQ1 Systems, which produce aquaculture and sensor-based feeding control delivery products. “We make a lot of small turned products in high volume. A quality bar feeding system allows us to maximise our machine throughput,” said Greg Humphries, Maltec’s Workshop Administrator. Although Maltec already had a couple of older barfeeders, the purchase of a new Mazak ‘Quick Turn’ 200MY CNC turning centre was the impetus to look at a new barfeeder model to complement this new state-of-the-art machine. Maltec has had a long association with Dimac Tooling, having purchased soft jaws, gripper inserts, mist extractors and other products from the supplier over the past 18 years. Dimac’s Hydrafeed caught Humphries’ attention as it offered a number of features over and above the company’s existing models; it was duly purchased at the same time as the new Mazak. “The Hydrafeed is quick and easy to set up and helps us to remain flexible as we can run small batch jobs without excessive set
ENGINEERED SOLUTIONS FOR WEAR PLATE
Greg Humphries, Workshop Administrator at Maltec Engineering.
up times,” said Humphries. “The ability to quickly set up the servo-driven backstop when processing multiples of non-barfed material is a real time saver compared to having to manually set-up and fit one. Having the barfeeder mounted on linear rails allows us to move it out of the way and accurately return it to its previous position when machining longer parts or servicing the machine.” The quicker set-up times of the Hydrafeed barfeeder has allowed Maltec to increase its spindle on-time, thereby allowing it to make more products each day. “The touch screen is clear and simple to read, and operates well in our industrial environment. The menu system and icons are also easy to follow,” Humphries added. While the performance of the Hydrafeed has been excellent, it is also Dimac’s customer service that has impressed Humphries: “Dimac contacted us to ensure that we understood what features were available and to provide assurance that any questions we had in regard to the machine would be answered promptly. They advised us on what would be required of us during installation and what training we would receive in the operation of the barfeeder. “After the Hyrdafeed was installed we received a follow-up call from the installers to ensure that the machine was functioning correctly and met our expectations. We have always received terrific service from the team at Dimac – reliable and timely service is important to us. “The Hydrafeed has certainly lived up to our expectations,” Humphries concluded. “It’s easy to use, has significantly improved our productivity and at the end of the day represents excellent value for money.” www.dimac.com.au www.malteceng.com.au
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STATE SPOTLIGHT
AW Bell – Setting new standards in specialised manufacturing in Australia Melbourne-based family business AW Bell is achieving major export contracts and expansion based on customer service, consistent high-quality output and on-time delivery. It is today a leading Industry 4.0 enterprise in the highly specialised field of complex precision metal parts based on investment and sand-casting processes. Established in 1952 by Alan Bell, the company has grown steadily from its origins as a patternmaker for the Australian foundry industry. Now led by a third generation of the Bell family, it has evolved into a high-end automotive supplier as well as playing an integral part in several global defence, aerospace, space and biomedical device supply chains. Today, the company operates from its modern 13,000sqm production facility in Dandenong South, Victoria. It is an AS9100D-accredited aerospace supplier of complex metal parts, incorporating investment casting, sand casting, rapid prototyping using 3D printing, production machining and tier-one assembly technologies. Employing some 100 highly skilled personnel, AW Bell specialises in high-quality metal products made from advanced ferrous and non-ferrous materials and continues to develop advanced technology. Continuous improvement together with research & development has been critical to the company’s success. Technological developments such as its Aluminium Billet Equivalent (ABE) casting process has seen the company successfully transition away from automotive component manufacturing into high-end aerospace, biomedical, space and defence product manufacture.
Early adopters of Industry 4.0 To be competitive in the modern marketplace, the company recognised that adopting Industry 4.0 and Smart Process Engineering early would provide the company with a strategic advantage. With forward planning extending across a five-year timeframe, the overall objective has been to integrate the very latest worldclass digital and physical technologies to streamline operations and promote the company’s strategic growth in bio-medical, aerospace, space and defence programs. “Digitisation of production management across the foundry and production machining operations from the receipt of raw materials through to the delivery of final components is now a reality,” said Sam Bell, AW Bell’s Chief Executive Officer. “We have embedded the digital monitoring of components at individual steps in the manufacturing value chain creating a serialised record of each part at
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AW Bell’s new Okuma MA-600H CNC horizontal machining centre, equipped with the OSP-P300MA control.
every processing point, today achieving the highest compliance with global aerospace traceability standards.”
volume as a result of the large tool capacity within the machines, gives us a strong competitive edge.
Investment in world-leading technology and machinery has been an important element in the success of AW Bell. Significant investment in high-end CNC machines goes back as early as 1985 with the company’s purchase of its first Okuma machine, a MC-6VA vertical machining centre with an OSP-5000M-G control. In 2017 and 2018, the company commissioned two more Okuma CNC vertical machining centres – a MU5000V model and a model MU6300V (P), each with the OSP-300MA-H control and an impressive 6APC Pallet pool system providing automation and excellent capacity.
“Our own experience and research within industry clearly confirmed that Okuma was considered to be a leader in this field with high-end machinery, and the back-up service and training has been outstanding. This, combined with the intuitive operating system and high accuracy of the machines, has meant all of our operators are extremely keen to be involved in running the equipment.
These have now been followed with the recent introduction of an Okuma CNC MA600H ll horizontal machining centre with an OSP-P300MA control. The new machine is one of the largest in the Okuma horizontal range, with 10APC capacity. This machine replaces two other existing machines, dramatically reducing labour costs with longer unmanned run time and remote control.
The new automated technology of the Okuma machine centres allows five-axis machining of highly complex components and provides real-time processing information and feedback on available capacity for response to critical customer timelines. The technology significantly boosts cycle times and throughput, and also provides superior control over batch repeatability. The pallet pool system and accuracy of the new machines allows them to run unmanned over multiple shifts, significantly reducing labour costs.
“Our experience with Okuma has been exceptional, as these machines produce components for safety-critical and highperformance/low-volume automotive, aerospace, land defence and bio-medical customers,” commented Sam Bell. “The high degree of consistent accuracy of parts with tight tolerances and the fact that we have achieved a 20% improvement in cycle times and can cope with extremely low
“Looking to the future, the latest machines have the capability of machining titanium and with higher accuracy and capacity to meet increased business. We are in an excellent position to continue to grow.”
AW Bell has also installed new worldleading robotics for shell dipping in investment casting, which has enabled full automation of the line and continuous monitoring of production variables in realtime. The robotics is a technological first for an Australian foundry.
STATE SPOTLIGHT Factory-built palletised automation provides hours of unmanned machining for AW Bell.
machinery through its machinery division, with upwards of 95% of its products being exported in this category.
Future plans Major plans for the future growth of this exciting Australian manufacturer will see the company moving into the vacuum melting of titanium investment castings, primarily for aerospace and space platforms. Currently the majority of high-value-added products made by vacuum melting are produced in the USA and Europe, with only a comparatively small proportion manufactured elsewhere. According to AW Bell, there is currently no capacity in Australia for the production of high-valueadd cast products manufactured through the vacuum investment casting of titanium, where exceptional levels of quality are required.
With export sales now exceeding 65% of the company’s turnover (up from just 10% five years ago), with high-quality cast and machine parts exported to parts of Europe, Asia and North America, it is not surprising that AW Bell was the recipient of the Governor of Victoria Export Award in 2016. In 2019 aerospace and defence sales represented approximately 40%, with exports of biomedical products to Europe constituting an additional 20%. AW Bell has been successful in securing principal supplier status with some major international suppliers in defence contracts based on its consistent worldleading expertise, high quality and ontime delivery. The company also exports
With its world-class engineering expertise, commitment to R&D and continuous improvement, and investment in new materials and capabilities for current and future market opportunities, AW Bell seeks to maintain its competitive advantage and expand in the global market. As one of the world’s specialists in the production of high-value, low-volume castings in exotic materials with an emphasis on demanding applications, AW Bell represents Australian advanced technology at its best. Okuma Australia Managing Director Dean McCarroll commended AW Bell on its exceptional business model and its emphasis on today’s Smart Factory: “It is a great privilege for Okuma to receive their custom and to work alongside such a dynamic company as AW Bell as it continues to expand its market internationally, gaining respect with principal supplier status with world-leading companies.” www.okumaaustralia.com.au www.awbell.com.au
AFTER 65 YEARS, WE’RE STILL HANDS-ON The transition to an Advanced Manufacturer Ronson Gears’ investment in technology, Industry 4.0, training and innovative processes all identify as Advanced Manufacturing. Although, we still keep a firm grip on our traditional values and hands-on approach!
www.ronsongears.com.au Telephone +61 3 9276 8900
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Sussex Taps – Home-grown success Victorian manufacturer Sussex Taps highlights the economic and sustainable benefits of home-grown success. The family-owned and operated business, which turns 25 next year, has been built upon inherently sustainable values, including local manufacturing, designing long-lasting products and a reuse-andrepurpose outlook on production. The Melbourne-based company owns and operates its own foundry, where brass is melted down and recycled into swarf, which forms the brass rods that eventually become tapware. This circular system is supported by Sussex’s manufacturing workshop, which recently underwent a multi-million-dollar expansion with plans to implement new technology to further improve its manufacturing capabilities. At the heart of Sussex’s business model is a commitment to retaining the artisanal aspects of its product output, where design and local manufacturing come first. Creative Director Vanessa Katsanevakis explains that this rubric is fundamental to Sussex’s operation as a sustainable design and manufacturing business and has set the business up to ask broader questions about the life cycle of the products it creates. “We operate under the mantra that good design is sustainable design,” says Katsanevakis. “To us, that really comes down to asking ourselves three core questions: How is the product designed? How is it produced? And, how will it be used? “We are lucky because our foundry means we can incorporate waste into our design process and output. It’s a matter of how long the resource can stay in the manufacturing cycle with the least amount of impact. The next step beyond this is making the end-of-life as easy as possible, when the product can be used again for another purpose. “But equally, we have to ask ourselves - is this design timeless? Will it retain its appeal throughout the years to come? It’s about marrying design outcomes with our values,” she continues. By reusing the metal scraps created in the manufacturing process, Sussex avoids contributing to Australia’s waste glut which, according to the National Waste Report 2018, comprised over 5.5 million tonnes in metal waste alone. Over the last five years, Sussex has implemented a number of cost and energy-saving efficiencies, including LED lighting updates which have reduced lighting costs by 50%, saving $12,015 per year. Energy cooling costs at Sussex’s foundry improved metal melting rates by 7% and energy savings of $13,000, or 71 tonnes in carbon emissions. And the recent installation of 100kW solar panels will reduce Sussex’s emissions 30%. “Values and design outcomes are one thing, but the business of sustainability can be something else altogether. We keep efficiencies high and always look for ways to improve them,” says Katsanevakis.
“Oftentimes, my peers in the industry will ask me about the true economic impact of implementing sustainable initiatives. While there’s no one size fits all, for us our sustainability program is vital to the health of our business.” Sussex’s foundry is just one element of a richly textured family heritage embedded in the business by its founder (and Vanessa Katsanevakis’ father) Nicolaas van Putten, a Vanessa Katsanevakis Dutch jeweller and watchmaker who diversified into tapware after recognising the similarities in expertise and precision required in both trades. When it came time for Katsanevakis to take the business’ reins in 2011, Sussex was already operating with inherent sustainability, long before the word became lodged in the zeitgeist. However, with the wake of the Global Financial Crisis spurring most Australian tap manufacturers to take production offshore, Katsanevakis faced an early challenge in her leadership of the company: keep production local or go offshore and compete on price. She chose the former, harnessing the foundry and pivoting the brand to become recognised within a burgeoning sector of the homewares market that sought luxurious products that were locally and sustainably made. In 2018, Sussex’s director Vanessa Katsanevakis was awarded Young Manufacturer of the Year by the Victorian Manufacturing Hall of Fame. She concludes: “Having a more vertical, integrated supply chain means we are in full control of our materials and our output, allowing us to mitigate our impact and ensure consistency.” www.sussextaps.com.au
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RUAG Australia upgrades manufacturing centre to Industry 4.0 standards RUAG Australia has completed an upgrade of its site in Bayswater, Victoria, to Industry 4.0 standards. The acquisition of next-generation embedded technology ensures RUAG is able to transition its machine shop into a state-of-the-art interconnected, data-driven environment. RUAG is an independent supplier and lifecycle support provider of systems and components on behalf of the Royal Australian Air Force (RAAF) and other international air forces, as well as civil aviation, worldwide. The upgrade to its facility will improve productivity and enhance the reliability of the manufacturing process to benefit customer supply chains, including those for hydraulic components for the Joint Strike Force (JSF) F-35 program. Industry 4.0 brings with it the next-level advancement of interconnectivity between devices, equipment, tools, visualisation systems, and their human users within the manufacturing system. It is an optimisation and networking of existing computerised technologies, with a central server to create cyber-to-physical systems for ensuring a smarter, more productive factory. The move to full interconnectivity at RUAG’s Hydraulic Centre of Excellence, housed at its Bayswater facility, generates significantly improved efficiencies as it creates a new human-to-machine interface. Real-time performance data is immediately available at any given moment throughout the manufacturing system thus safeguarding reduced manufacturing lead times and securing a more efficient and reliable supply chain.
“Moving to Industry 4.0 allows us to more fully realise the potential of recent workshop upgrades and investments in manufacturing capabilities and in so doing ensure we deliver high performance for our customers,” states Terry Miles, General Manager RUAG Australia. “Exploiting the equipment’s ability to be networked, we are able to generate a full array of visual performance indicators on demand that report on overall equipment effectiveness. Our process reviews are granular, where we trend uptime, identify otherwisehidden process bottle-necks, and provide visual management controls within each work cell.” The transition of the Bayswater facility to Industry 4.0 standards included the integration of a dedicated server capable of interfacing with manufacturing tools running dated software platforms as well as those featuring state-of-the-art data interfaces. Software integration and machine connectivity ensures all manufacturing process data is logged into a relational database management system (RDBMS). Teams company-wide have direct access to the intuitive and straightforward system of representing data and are able to interrogate and trend machining performance in real time. www.ruag.com
Continuing to support your compressed air needs While we are all currently going through some challenging and unprecedented times, one thing has not changed - our commitment to supporting your compressed air requirements. We have put in place extensive preventive measures over the past few months, which means that from; sales, 24-7 service support, analysis and advice through to project solutions,
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we remain available to assist you in reliably and efficiently meeting your compressed air needs. And, for added peace of mind, we recently introduced Contactless Service and the Compressed Air Assessment 4.0.
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For all your compressed air requirements rest assured we’ve still got you covered!
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Ronson Gears – From traditional to advanced manufacturing In an address to The Vernier Society last year, Ai Group CEO Innes Willox highlighted advanced manufacturing’s importance to Australia’s future prospects, and the need to inspire companies that may be seen as ‘traditional’ manufacturers to become ‘advanced’. Based in Highett, Victoria, Ronson Gears was established in 1954 by Melbourne engineer Ron New. Ronson’s current Managing Director, Gordon New, commenced his career as a cadet at Robert Bosch Australia before a stint working and travelling in Germany and Europe. A mechanical engineer, he returned to Australia and joined the family business in 1976. Today the company manufactures gears, associated power transmission components and proprietary gearbox assemblies for a range of customers and industries. Ronson could be regarded as a ‘traditional’ manufacturer, as gears themselves are indeed a ‘traditional’ mechanical component. Dating back to hundreds of years BC, gears are among the oldest equipment known to mankind. Originally carved by hand, the first mechanical machines built specifically to cut more accurate gear profiles date back to the 19th Century, when English inventor Joseph Whitworth patented the first gear hobbing process in 1835. So how do businesses like Ronson transition from such deep ‘traditional’ roots to become a truly ‘advanced’ manufacturer? In Willox’s address, entitled ‘The future of Australian manufacturing: ‘traditional’ or ‘advanced’ … or both?’, he outlined the criteria that define an advanced manufacturer: • High value-add: Servicing niche markets, often with highly customised product and service offerings. • Knowledge intensity: Characterised by sophisticated design, extensive IP, automated processes, and digitally enabled businesses and supply chains. • Investment in the workforce: Including close engagement with staff. • Innovative: Investment in research & development, readiness to add new products and services, responsiveness to changing opportunities, and the ability to evolve business models. • Global outlook and global opportunities: Scanning the horizon, engagement in and with supply chains, global servicing, investment opportunities abroad. Ronson Gears has developed to meet this definition in the following ways: • High added value: Gear manufacturing is a highly specialised niche industry. With demand for accurate, high-quality products continually increasing, Ronson’s
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universities by providing guest lectures, internships, and assisting with coursebased projects. • Innovation: Ronson introduced Lean processes and methodology some years ago, while innovative application of tooling concepts and tooling technology are reducing process cycle times by up to 80% over traditional methods. New manufacturing techniques are continually being developed to assist customers with product development and requirements.
Gordon New (right) honoured at the 50th anniversary of Eurotrans 2019 in Hannover, Germany.
service offering has met the challenge by continually investing in state-ofthe-art technology. Millions of dollars have been invested in recent years in rigid, fast, accurate CNC gear-hobbing machines, advanced CNC geargrinding machines and CNC analytical gear metrology equipment. Ronson’s enhanced capability now extends to the manufacture of master gears. • Knowledge intensity: Ronson’s operating systems have recently been upgraded to enable it to implement Industry 4.0, incorporating automation and robotics. • Unique processes and continual development of manufacturing IP: Ronson’s sophisticated ERP system controls all aspects of business operations; interconnected to the company’s quality management systems, it conforms to ISO 9001:2015 and AS 9100:2016 standards,. • Investment in workforce: Apprentices are retained annually at Ronson Gears, and with no gearmanufacturing courses conducted in Australia, external engineering training is enhanced by in-house training in gear-cutting and gear-grinding. This extends to all employees for various aspects of manufacturing, with some overseas travel for specialised training, and attendance at gear industry seminars and exhibitions. Ronson also supports engineering students at local
• Global outlook and opportunities: Since 1993 Ronson staff have travelled the world to stay abreast of industry developments. Membership of the American Gear Manufacturers Association (AGMA) and Eurotrans, Europe’s committee of gear associations, has enhanced the company’s reputation and creditability. Gordon New has sat on the board of AGMA and addressed international meetings and conferences in many countries. The company partakes in trade missions, both local and international, organised by industry and government. Such connectivity and exposure have resulted in Ronson exporting product to bluechip companies globally and enabled connection to the defence and aerospace industries. Ronson’s transition to advanced manufacturing has been gradual, requiring foresight, courage and investment, but has resulted in the company becoming a truly globally competitive gear manufacturer while also providing Australian industry with locally sourced precision gear product. At every new stage of the journey, Ronson’s knowledge and IP has expanded, with corresponding increases in moral and excitement within its ranks. Industries now served include mining, defence, construction, rail, commercial aircraft and space. Blue-chip customers that put their trust in Ronson include Siemens, Caterpillar, BAE Systems, Marand Engineering, Dormakaba, Lockheed Martin, Sandvik Mining and Downer. According to Gordon New, without having transitioned to advanced manufacturing, Ronson would not have such a clientele. Indeed, the company may not even exist! www.ronsongears.com.au
Explore your unlimited possibilities additively The Additive Manufacturing Hub is a $1.85m programme that will grow and develop additive manufacturing capability and investment in Victoria. The vision of the AM Hub is to provide an industry-driven network of users, suppliers and supporters that will foster and grow the use of Additive Manufacturing technology in Australia. + Promote and market additive manufacturing sector capabilities. + Expand the knowledge base of additive manufacturing technologies. + A grant programme for Victorian businesses to encourage adoption of additive manufacturing technologies. + Support the creation of high quality additive manufacturing jobs. + Be a voice to Government on additive manufacturing sector development. Companies looking to explore the potential of additive manufacturing, or further expand their use of the technology should register interest via email at amhub@amtil.com.au
www.amhub.net.au 1407AMHUB
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Garry Rogers Motorsport: Improving race-car performance with Markforged Garry Rogers Motorsport is Australia’s oldest motorsport team, securing wins in the nation’s Supercars Championship, Dunlop Super2 Series, and Bathurst 1000. The company has a team of nearly 40, with a focus on designing, building, and maintaining its own vehicles. The challenge While Garry Rogers Motorsport’s in-house workshop can do some manual machining and composites fabrication, it does not have CNC machining capability. The team would instead turn to third parties each time it needed several low-volume complex parts, but the turnaround time was not fast enough and was cost-prohibitive. The more time spent outsourcing parts, the slower the R&D process, meaning the team had less time to focus on finding ways to improve their cars’ performance, both on the racetrack and in the pit during pitstops. Engineers and designers at Garry Rogers Motorsport use computational fluid dynamics (CFD) software to test the airflow of parts. The software often recommends changes in a part’s design to increase speed and improve overall performance, which can result in extremely complex parts – something the team can’t create using any other method. This challenge, coupled with the high costs and long lead times of adding extra details to a part’s design, resulted in engineers and designers shying away from making iterations on parts that required complex designs.
The solution In 2013, Stefan Millard, Team Manager at Garry Rogers Motorsport, made the decision to add a 3D printer to the workshop to give engineers and designers a new and complementary way to make prototypes and production parts. Through his research, he heard of a new machine capable of 3D printing parts containing carbon-fibre – a material familiar to the team. “It seemed like Markforged was the only one focused on making strong end-use parts rather than just prototypes,” Millard recalls. The team needed carbon-fibre to produce strong parts that could be used on its race-cars – and they needed to withstand high use. Millard pre-ordered a carbon-fibre 3D printer from Markforged a few months later, making Garry Rogers Motorsport one of the first companies in Australia to invest in Markforged technology. Today, the team at Garry Rogers Motorsport mainly uses its 3D printer to print complex parts – from jigs and fixtures to race car end-use parts. According to Millard, around half or more of the
Garry Rogers Motorsport used to prototype steering wheels with injection moulded rubber handles and are now able to 3D print the handles for end use.
parts produced are for end use, based on the CFD software’s suggestions. Some of the end-use parts include covers for door locks, gearbox housings, steering wheel handles, and camera mounts for the drivers. “You name it, we’ve generally tried to print it,” says Millard. However, the team has found the most success in printing patterns for fiberglass mouldings. A recent example of this was a brake duct pattern – a part used to create a mould for the final brake duct – which used to cost $1,000 and took two weeks to manufacture. The team printed the same part in-house for $75 and reduced its turnaround time to 24 hours. The brake duct pattern also contains details in its design that can’t be easily produced using subtractive methods – and unlike a CNC machine, a 3D printer doesn’t quote additional costs or time due to details in a design.
Looking ahead Design flexibility and removing turnaround time have been the two biggest benefits of the investment, according to Millard. This has in turn helped the team to increase their cars’ performance. Since adding the carbon-fibre 3D printer, there has been a major focus on reducing assembly time by taking parts that used to require assembly and printing it as one part. The time saved as a result of implementing Markforged technology is redeployed back into R&D.
The final brake duct, which was made using a 3D printed brake duct pattern.
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“That extra time we get by using our Markforged printer goes straight into the designing or making more parts or finding other areas to make Garry Rogers Motorsport cars go faster,” says Millard. “That’s our primary goal.” www.markforged.com www.grmotorsport.com.au
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UTS ProtoSpace - Enabling additive access Businesses can access the latest additive manufacturing (AM) equipment and knowledge at ProtoSpace, a dedicated facility at the University of Technology Sydney (UTS). ProtoSpace is unique in offering access to high-end equipment and technical advice and expertise beyond the reach of many manufacturers. It encourages direct, hands-on experimentation, and offers training and consultation alongside access to AM capabilities supported by operational and engineering teams.
metre high mineral-separating spiral is being printed at ProtoSpace, and the partnership is developing a bespoke 3D printer for on-site equipment parts at Mineral Technologies’ remote locations in Australia and overseas.
“We want to collaborate with industry partners by providing access to cuttingedge expertise in 3D printing technology, software, engineering and design,” says Hervé Harvard, Director of both ProtoSpace and UTS’ Rapido facility. “We have assembled a highly advanced suite of printers, with eight individual AM machines on-site, and provide guidance on how AM technologies will best fit a business. And we can bring together multi-skilled teams from across UTS drawing on specific discipline areas including artificial intelligence, Internet of Things (IoT), robotics and automation to work closely with businesses to develop their best solution.” As AM has matured, a new era in bespoke 3D printing promises great potential for innovation, says Hervé. Mining services company Mineral Technologies and UTS have been working together for almost two years, examining the use of composite polymer for equipment manufacture, and exploring 3D printing technology to create economic benefits and competitive edge. A two-
Alex de Andrade, General Manager – Metallurgy, Equipment and Technology at Mineral Technologies, says: “It is often very difficult to build new advanced capabilities from the ground up in a very short window of competitiveness, and we look to expedite this process through external collaborations with universities and cooperative research centres (CRCs).” He says the collaboration delivers technical diversity and skills that would otherwise take decades to build internally: “Our AM spiral technology enables us to connect all of our metallurgical test results (big data), print a bespoke shape without capital-intense tooling, and drive multiple iterations of a new spiral shape or profile on a digital twin before deploying the production cells to the project/ construction site.” Harvard says UTS is not promoting any particular machine or technology: “We’re advising on AM and providing equipment for industry to use. We want businesses to walk in to ProtoSpace and explore how to leverage it.” www.uts.edu.au
Is your business ready for the future of manufacturing? More than 40 years of cutting edge technology in sheet metal machinery along with the laser and electronics industries has led Prima Industrie to Prima Additive - A division which is dedicated to metal additive manufacturing systems that guarantee a close partnership with customers, competitiveness, and efficiency. Thanks to our Powder Bed Fusion and Laser Metal Deposition systems, now you can build, repair and prototype - adding value and shaping the new vision of your business. So, add something new and choose Prima Additive from IMTS Machinery.
IMTS Machinery E | sales@imts.com.au W | imts.com.au P | +61 3 9314 9888
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Additive Manufacturing Hub case study: Advatek Lighting When Advatek Lighting needed to develop a housing for a new digital LED control system, it turned to the Additive Manufacturing Hub for assistance. Advatek Lighting is a small business dedicated to developing innovative, worldclass control systems for decorative LED lighting. The type of lighting is commonly referred to as “Pixel” technology, where each LED can be digitally controlled to be any colour using specially designed integrated circuits. Advatek’s control systems are state-of-the-art in the field and typically interface between lighting software using an Ethernet network interface and many different types of digital LEDs. Advatek has been operating for around five years now and has a growing customer base worldwide. Approximately 80% of its business comes from international sales.
The initial prototype.
The challenge This project entailed the design of a plastic enclosure to form part of a new digital LED control system. The goal was to create a robust but cost-effective housing for part of the system, which would have been difficult to achieve with a typical metal enclosure. Tightly placed electronic components, connectors and fuses all needed access from multiple angles in a small overall footprint. This meant the design would be complex, heavy and expensive to achieve with folded sheet metal. Given those constraints, it was apparent that plastic enclosures would be more suitable. However, the costs and processes involved with a typical injection moulding set-up presented a significant barrier to entry. Additionally, it was uncertain whether Advatek’s key markets would be receptive to the product being made in a custom plastic housing, when traditionally the industry favours the use of very robust metal enclosures for rugged, commercial applications. Therefore, it was deemed risky, as well as expensive and slow, to move directly to an injection moulding set-up without first exploring how the physical product might look and feel.
The solution In undertaking the project, the Additive Manufacturing Hub (AM Hub) engaged the assistance of registered service providers Cobalt Design and GoProto. An additive manufacturing (AM) program using current 3D printing techniques (including the more specialised Multi Jet Fusion process) was identified as an excellent way to mitigate many of the above concerns.
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The project started off with a design concept phase, which explored various aesthetic concepts. Advatek aimed to keep the product physically strong, with an appearance that showed that to the end user.
while open. These concepts were relatively complex compared to the main enclosure and required experimentation and multiple iterations. Various rib types and chamfers were tested to see how they held up in realworld testing using MJF prints.
Once the initial CAD design was completed, the first prototypes were complete the following day after an overnight 3D printing run. This rapid process allowed Advatek to iterate the concept multiple times in a short period and make key decisions related to size, features and aesthetics. For example, the first prototype felt too large for some of the intended applications; it was decided to focus on size reduction, including an external DIN rail clip system instead of an internal one. The result was a reduction in volume of approximately 30%. These drastic changes were only realistic because it was quick and cheap to simply try again with a new design.
The MJF process also allowed Advatek to show prototype versions to customers for feedback about the design concept without undermining their overall opinion regarding the quality of the parts.
While the initial prototypes were useful to quickly narrow down to the best overall concept, they weren’t suitable for customer feedback or determining which features would work best for the fuse cover lid. This is where the Multi Jet Fusion (MJF) process took over for the remainder of the project. It was a fast way to 3D print prototypes at a quality that is production-ready. Using the MJF process, Advatek could test retention features for the fuse lid, which involved features to hold it closed and open, as well as allowing it to pop on and off if the end user accidentally knocks it too hard
How the Additive Manufacturing Hub helped It was predicated that the project would make full use of a $20,000 Build It Better (BIB) voucher co-contribution through the AM Hub. The estimated breakdown amounts for this project were: • $28,000 to Cobalt Design ($14,000 to be contributed via the BIB voucher) • $12,000 to GoProto ($6,000 to be contributed via the BIB voucher) In the end, a total of $46,047.60 was spent with the two registered providers (ex GST). Of this amount, $20,000 was contributed by the BIB voucher and the remaining $26,047.60 was paid by Advatek Lighting. The following were the breakdowns per RSP: • Cobalt Design $44,697.35 • GoProto $1,350.25 The cost of GoProto’s services was lower than expected because Cobalt was able to take care of 3D printing many prototypes
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in-house directly, and because fewer MJF prototypes were needed for customer feedback than initially estimated. The cost of Cobalt’s services was higher than expected because of increased complexity as the project scope changed during the development. According to Luke Taylor, Managing Director of Advatek: “The Build it Better program gave the perfect opportunity to take advantage of this technology. The program allowed Advatek to design, experiment with and ultimately create a high-quality product out of plastics. Where the alternative was going to be a cumbersome, heavy metal box, the AM capabilities available in Victoria today enabled a rapid development of a superior product.”
The outcome Over the course of the project, new features could easily be added along the way, allowing innovation without disruption to business goals and deadlines. Final product weights were minimised, reducing logistics costs and emissions into the future and aiding in cost-effective international trade. During the design concept phase the idea was raised of having a plastic lid cover over the fuse area. It would not have been possible to produce this in metal, and the features required to make it work reliably in plastic were complicated and required experimentation. However, the AM process that Advatek used for prototyping allowed it to conduct those experiments easily. Therefore, the feature was added to the concept and made its way through to the final product, resulting in an improved design. Another noteworthy feature that was added in at a late stage was LED fuse indicators. Previously considered complex and risky, this feature was added as a last-minute feature after the use of AM had proven itself a successful approach in the project. With the rapid development processes in place to allow another change without significantly impacting the cost and timeline, Advatek worked on the feature and was able to include it on the final product.
Advatek is already planning to use the AM processes employed in this project in the near future and on an ongoing basis. Currently planned processes for future development are standard 3D printing and MJF for plastics only at this stage. There are other AM concepts that can be explored for future projects, such as for the prototyping of printed circuit boards (PCBs) and for the manufacture of injection mould tooling. Since MJF technology is available in Victoria, Advatek was able to keep more of the project in Australia, which created more opportunity for the local economy, reduced emissions from freighting products back and forth with international partners, and importantly, allowed much faster experimentation and ultimately time to market. Support for local business and employment has been increased by keeping the prototyping in Victoria and increasing sales opportunities for Advatek with a more innovative product. There has already been great reception to this product internationally and export sales are expected to increase by at least 30% by the middle of 2020. New employment opportunities at Advatek are expected from the increased revenue, mainly in production roles initially. The intellectual property developed in this project is also being leveraged as part of a new product line that will result in increased sales, support and engineering capacity and employment at Advatek. Led by AMTIL and supported by the Victorian Government, the Additive Manufacturing Hub has been established to grow and develop additive manufacturing capability. To find out more, contact John Croft, AM Hub Manager, on 03 9800 3666, or email jcroft@amtil.com.au. www.amhub.net.au www.advateklights.com
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SPEED3D: 3D-printed ACTIVAT3D copper proven to kill COVID-19 virus on contact surfaces Based in Dandenong, Victoria, SPEE3D has successfully developed and tested a fast, affordable way to 3D print anti-microbial copper onto metal surfaces. Laboratory tests have shown that touch surfaces modified by this process ‘contact kills’ 96% of SARS-CoV-2, the virus that causes COVID-19, in just two hours. The process, known as ACTIVAT3D copper, has been developed by modifying SPEE3D’s world-leading 3D printing technology, using new algorithms for controlling their metal printers to allow existing metal parts to be coated with copper. Copper parts are difficult to produce using traditional methods and thus 3D printing may be the only tool available to rapidly deploy copper. SPEE3D technology makes it fast and affordable. Australian NATA-accredited clinical trial speciality laboratory 360Biolabs tested the effect of ACTIVAT3D copper on live SARSCoV-2 in their Physical Containment 3 (PC3) laboratory. The results showed that 96% of the virus is killed in two hours and 99.2% of the virus is killed in five hours, while stainless steel showed no reduction in the same time frame. Stainless steel is currently the material typically used in hygiene environments. With laboratory testing complete, it is hoped the Australian-developed breakthrough can be applied to common touch items like door handles, rails and touch plates in hospitals, schools and other public places. SPEE3D CEO Byron Kennedy said the company has focused on developing a solution that can be rapidly deployed and is more efficient than printing solid copper parts from scratch: “The lab results show ACTIVAT3D copper surfaces behave much better than traditional stainless, which may offer a promising solution to a global problem. The technology can be used globally addressing local requirements, be they in hospitals, schools, on ships or shopping centres.” SPEE3D developed the unique technique to harness copper’s proven abilities to eradicate bacteria, yeasts and viruses rapidly on contact by breaking down the cell wall and destroying the genome. This is compared to traditional surfaces like stainless steel and plastic, with recent studies showing that SARS-CoV-2 can survive on these materials for up to three days. Stainless steel and plastic surfaces can be disinfected; however, the problem with these surfaces is that, even with rigorous protocols, it is impossible to clean them constantly. When surfaces become contaminated between cleans, touching them may contribute to superspreading events. Touching contaminated objects, known as fomite transmission, was suspected during the 2003 SARS-CoV-1 epidemic and analysis of a nosocomial (hospital-acquired) SARS57 CoV-1 superspreading event concluded that touching contaminated objects (fomites) played a significant role. To validate its abilities to combat COVID-19, copper samples printed by SPEE3D have been lab tested and shown to kill SARS-CoV-2. The SPEE3D team developed a process to coat a stainless-steel door touch plate and other handles in just five minutes. The digital print files were then sent to participating partners around the globe, allowing the simultaneous installation of newly coated parts in buildings in the USA, Asia and Australia. In a matter of days, copper fixtures were installed in buildings at Charles Darwin University (CDU) in Darwin, Swinburne University in Melbourne, the University of Delaware in the USA and in Japan. Assistant Director of Digital Design and Additive Manufacturing at the University of Delaware, Larry (LJ) Holmes, said: “Scientists and engineers at the University of Delaware were honoured to be part of this global research collaboration. We recognised the importance of developing simple, yet highly impactful, solutions that have been proven effective on COVID-19. Recognising supply chain shortfalls
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over the last couple of months, it was clear to this team that fabrication speed was a priority. Using this technology, we are able to rapidly transition safe options for high-touch surfaces.” SPEE3D has worked in close collaboration with the Advanced Manufacturing Alliance (AMA) at CDU. The initial testing of ACTIVAT3D copper and future studies have been funded and supported by National Energy Resources Australia (NERA). NERA CEO Miranda Taylor said SPEE3D’s ability to successfully adapt its technology and pivot its business model demonstrated the resilience of Australian businesses and their potential to help the world combat COVID-19. “NERA has supported SPEE3D develop market-leading technologies to help our national energy sector, and we’re committed to assisting them leverage their skills and expertise into this important new paradigm to help our country and many others curtail the devastating impact of this global pandemic.” www.spee3d.com
ADDITIVE MANUFACTURING
Triple Eight revs up production with HP MJF technology By 3D printing customised parts for a race-car steering wheel, Triple Eight Race Engineering has been able to accelerate production while decreasing costs. Triple Eight – also known as the Red Bull Holden Racing Team – is an Australian motor racing team that competes in the Virgin Australian Supercars Championship, Australia’s premier motorsport category. Parts inside Triple Eight cars need to be structurally fit-for-purpose and durable enough to endure the harshness and vibration that come with racing. High temperatures inside the cars can exceed 65°C. During racing, these cars reach speeds in excess of 300kph and generate g-forces up to 2.5 times gravity. In early 2017, EVOK3D, a Melbourne-based 3D printing solutions company and HP partner, visited Triple Eight’s workshop to show HP Multi Jet Fusion (MJF) parts. “We were blown away with the part quality and strength, compared to what we were used to,” said Mark Dutton, Race Team Manager at Triple Eight. “We realised we needed to have access to this technology to improve a whole host of components”. This aligned with a broader discussion with HP and resulted in a joint partnership with EVOK3D, HP, and Triple Eight. The team collaborated with HP 3D Printing and EVOK3D to produce three main pieces for the race car steering wheel: a twopart mould to form the soft polyurethane exterior that wraps around and cushions the steering wheel; lightweight cores that sandwich the armature plate and form the bulk of the steering wheel rim; and the housing for the mounting of switchgear and lights to the hub. Triple Eight wanted to 3D print these pieces to accelerate the manufacturing process and allow for light-weighting and customisation to enhance driver ergonomics. The design freedom that comes with using HP MJF technology has allowed Triple Eight to reduce the weight of the parts and customise the steering wheel grip based on the driver’s anatomy. By tailoring the grip to the driver’s individual needs, drivers can achieve better control of the vehicle, execute more precise steering inputs, and benefit from enhanced comfort. www.EVOK3D.com.au
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Leading the way with 3D printing The last 30 years has seen Australia’s manufacturing industry undergo a series of challenges. Rising labour costs and stricter working conditions have prompted the manufacturing industry to turn to technology and offshoring to mitigate rising costs. As we enter the Fourth Industrial Revolution, the manufacturing industry is once again diversifying, leading digital transformation by integrating smarter, connected data technology in day-to-day operations. By Mike Boyle. At the forefront of advanced manufacturing is 3D printing. According to International Data Corporation. (IDC), by 2022 worldwide 3D printing spending is expected to hit close to $37.4bn. Through its ability to produce personalised products, shorten supply chains and promote sustainable practices, 3D printing is leading the charge of advanced manufacturing through the Fourth Industrial Revolution, a new era for our industry marked by the blending of digital and physical worlds.
Custom creation Constant feedback loops, incorporating consumer comments into product design, have raised the expectation for products and services that are designed for segments of one; treating customers as an individual rather than as similar segments. No longer can businesses be ignorant of customer preferences and apply a broadbrush approach to achieve success. Rather, businesses must lean into the era of personalisation, creating bespoke products and services. The adoption of 3D printing allows manufacturers to create data-derived products faster and cheaper compared to traditional manufacturing processes. For example, iOrthotics, a Queenslandbased supplier of custom orthotic devices, has built its business on designing and manufacturing stronger, lighter and more accurate orthic devices through 3D printing. iOrthotics uses 3D scanning to determine the shoe size, arch and heel type of a customer’s foot, creating custom orthotics that provide improved support and comfort. By combining customer data and 3D printing processes iOrthotics has been able to triple its output from producing 30 orthotic devices per day to producing 90. Additionally, SmileDirectClub, a global orthodontic supplier, uses 3D scanning and printing to create customised clear aligners that gradually shifts teeth into desired positions. By printing aligners specific to a customer’s smile, SmileDirectClub saves customers up to 60% of the cost and time of traditional orthodontic procedures. Due to the success of SmileDirectClub’s customised aligners, they have doubled their investment in 3D printing, anticipating the production of 20 million moulds over the next 12 months. Thanks to 3D printing, the time and costs of customised production are significantly reduced.
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Streamlined production By decentralising production, 3D printing has the potential to bring the manufacturing industry closer to home, improving timeto-market and removing the reliance on transportation. By printing modules in one 3D process close to where the product is being consumed, rather than assembling several components offshore, 3D printing shortens and simplifies traditional supply chains. For instance, in the coming years a 3D printer will sit on a mine site waiting to instantly print any parts that break, removing the time and costs associated with manufacturing and shipping. This is unlike typical manufacturing supply chains that involve a producer, supplier and manufacturer. Shorter and simpler supply chains also mean businesses are afforded access to rapid prototyping. Rapid prototyping fosters innovation by enabling quick and cost-effective trial & error processes. By removing the need for tooling, 3D printing allows unlimited freedom and flexibility during the design of customised products. As such, an Australian designer can create highly-personalised designs and have their product manufactured in Australia rather than offshore, saving Australian businesses time and money.
Sustainable manufacturing Beyond boosting productivity, 3D printing also helps organisations meet the rising social and environmental consciousness of consumers. Research from HP Australia found that 71% of consumers are willing to pay extra for sustainable products. This figure is even higher among business, with
77% willing to pay a premium. Amid rising awareness for Australia’s environmental regulations, not least of which include the Government’s commitment to reduce greenhouse gas emissions by 26% to 28% by 2030, governments and organisations will need to implement more environmentally responsible practices and measures. Manufacturing organisations have already began leveraging 3D printing to reduce environmental impacts and costs. HP’s large-format division redesigned parts of the Latex 1500 printer, leading to a 75% cost reduction in part development, a part weight reduction of 88%, and a consolidation of parts reducing waste and energy. Similarly, iOrthotics, by printing to exact specifications and printing in one-module units, has also minimised its wastage output to less than 1%, compared with traditional subtractive techniques that typically waste 90% or more of the material required to manufacture orthotics. As advanced manufacturing leads the Fourth Industrial Revolution, it’s important manufacturers are smarter in how they produce, store and deliver products. As the digital and physical worlds continue to blend, the importance of incorporating customer input, addressing growing social and environmental concerns, all while continuing to drive profitable growth, will be become more critical than ever. Michael Boyle is the Managing Director for HP Australia and New Zealand. www.hpe.com/au www.smiledirectclub.com.au www.iorthotics.com.au
ADDITIVE MANUFACTURING
IMTS – Supplying the Prima Additive range Based in Melbourne, IMTS Machinery is the sole supplier to Australia and New Zealand of the full range of additive manufacturing systems from Prima Additive, a division of the Prima Industrie group of companies based in Italy. IMTS has been offering the entire range of Prima Power machinery for more than 15 years, encompassing laser cutting, turret punching, combination machines, press brakes and panel benders. Now it is proud to annouce arrival of the Prima Additive machinery from the Prima Industrie group. Prima Additive is a leading specialist in additive manufacturing processes, systems and solutions worldwide. It offers an extensive range of metallic laser additive manufacturing technologies, with systems that utilitse powder bed fusion and laser metal deposition processes, as well as full application support and global service. Benefiting from Prima Industrie’s longstanding experience in laser machinery and services, Prima Additive provides strong support to its customers, developing innovative applications driven by the recent needs and demands in the key industrial sectors where additive manufacturing is currently undergoing dynamic evolution, such as aerospace, automotive and energy. The Print Sharp (powder bed) and Laserdyne (laser deposition) machines are
both capable of printing in many different types of powders, including aluminium, nickel, steel and titanium, along with other exotic metals. These can be tested directly at the Prima headquarters when required by the customer. Prima Additive has a customer-oriented approach built on services tailored to each customer’s diverse needs, offering advanced training, consulting, technical service, process optimisation, machinery status, monitoring and analysis, application development and certification. Both IMTS and Prima Additive place a high value on
the development of long-term partnerships, regarding the key product that they deliver to the customer is not machines or applications, but the manufacturing capacity that can be achieved with the right technology. IMTS’ service covers the entire life cycle of the system and technology, and is designed to maximise the addedvalue and the profit for the customer.At the heart of Prima Additive’s service offering is a clear, simple goal: supporting, training, operating, and protecting the customer’s output to guarantee performance. www.imts.com.au
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No set-up, no downtime for Smart Factories Manufacturing is on the eve of a comprehensive process of digitalisation that will impact almost all its stages: product design, process planning, machining, assembly, and more. The driving force behind the changes is a series of technological breakthroughs related to the Fourth Industrial Revolution, or Industry 4.0. With the use of network communication, new digital technologies combine physical manufacturing systems with virtual worlds of knowledge and 3D modelling. The target is significantly increased output, but as manufacturing systems considerably improve their intellectual features and decision-making capabilities, they necessarily become more complicated and more expensive. Minimising the downtime of such systems is a ‘must’ for the development of every system component such as machine tools, workholding devices or cutting tools. Cutting tools can not only cut metal but also cut downtime, depending on their design concept. Assembled cutting tools with exchangeable cutting heads from cemented carbides are very common in metalworking today. Two decades ago, there were very few systems built on an exchangeable head principle. Now, practically every leading cutting tool manufacturer has this type of system in its product range. Advances in tool grinding and resharpening machines have simplified production of solid carbide tools and their regrinding. This in turn has resulted in an increased number of medium and small tool manufacturers, and a growth of regrinding services. It might have been expected that the solid carbide design approach would seriously challenge the exchangeable alternative and quickly regain lost ground. However, this has not happened. In fact, the situation is reversed: progress in machine tool engineering and the current trend towards smart manufacturing hold good promise for the future of assembled cutting tools with exchangeable heads.
Iscar’s ‘no set-up’ principle An example of this apparent contrast may be provided by taking a look at Iscar – a leader in the field of cutting tool manufacturing. Iscar introduced the ‘no set-up’ principle in tools with exchangeable heads, whereby replacing a worn head would not require any additional set-up operation for adjustment, and therefore the head could be changed without removing a tool from the machine. The source of this ‘no set-up’ feature is high repeatability of the exchangeable heads, which is ensured by a face contact between the head and a tool body, and strict tolerance limits for the head area protruding over the body. The ‘no set-up’ principle was successfully realised in Iscar’s MultiMaster and SumoCham rotating tool families. In non-rotating products, the new Multi-F-Grip and Logiq-5-Grip parting and grooving tool families represent the fruits of a different approach where the assembled tool comprises a tool block and an indexable multi-pocket adapter carrying replaceable inserts. Due to the high precision of the assembly components, the pocket indexing does not require additional setup. Both ‘no set-up’ concepts provide significant reductions in machine downtime. Along with the benefits in reducing downtime, these tools feature exceptional versatility. The Multi-Master, for instance – where the head is suitable for mounting in different tool bodies and the body can carry different heads – enables thousands of tool combinations for a broad range of applications, including milling shoulders, faces, slots or complex surfaces and machining holes or chamfers. Multi-F-Grip, a family of non-rotating tool blocks and four-pocket adapters, integrates both Tang and Do-Grip inserts. Not so long ago, versatility was considered as the main advantage of the tools with exchangeable heads; however, recent progress in machine tool building and, especially, the trend towards smart manufacturing based on Industry 4.0 concepts, returned ‘no set-up’ capabilities to the fore.
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Advanced regrinding allows restoration of cutting geometry of a worn solid carbide tool with high accuracy. However, the tool changes dimensions; and putting it into operation demands preliminary setup and appropriate corrections in a CNC program. This causes a reduction in effective cutting time, diminishing productivity which in turn increases production costs. However, a ‘no set-up’ quick-change cutting head eliminates the need for supplemental measurements or program corrections and does not require any additional set-up units. This is why the ‘no set-up’ capability of a cutting tool plays a significant role in a smart metalworking factory. From this point of view, ‘no set-up’ assembled tools with exchangeable carbide heads, such as MultiMaster and Sumocham, can be considered as a good match for a smart factory. Understanding the benefits of this capability makes it clear why Iscar considered tough tolerance limits for the overhang as an essential design requirement when the company started development of these two lines, some 20 years ago.
Custom configurations A further advantage of using tools with exchangeable heads is their ability to customise tool configuration according to the requirements for machining a specific part. Multitasking machines that enable various types of cutting in one single-step process have become very popular in industry. These machines have driven-tool capabilities for combining machining by rotating and no-rotating tools, which can significantly improve productivity. In addition, machine tool builders offer a range of options to supplement a standard CNC lathe with driven-tool functions, and so transform the lathe to a multitasking machine. The power characteristics of a typical driven-tool unit are similar to the parameters of a typical small machining centre. The Multi-Master line features a wide variety of tool bodies (‘shanks’) with different adaptations, reducers and extensions, which ensure an optimum configuration and minimise tool overhang. This greatly contributes to reducing bending load on the driven tool unit mechanism to improve performance and tool life.
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Implementing Industry 4.0 concepts into the metalworking industry is exemplified by the integration of the ‘no set-up’ principle in assembled tools with exchangeable heads. And it is not only about saving cemented carbide; the new developments have generated important capabilities to maximise machining output and decrease production costs.
At the same time, it is precisely these capabilities that might demand stricter requirements for appropriate design parameters, particularly regarding the tightening of axial repeatability tolerances. www.iscar.com.au
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CUTTING TOOLS
Dormer Pramet strengthens die and mould capabilities In recent years, global manufacturer Dormer Pramet has expanded its assortment of indexable and solid round tools to support a variety of applications in the die and mould sectors. This diverse industry features a wide array of moulding components, often featuring materials that are difficult to machine, with a requirement for tools capable of high feeds and large material removal rates. Common components include plastic injection moulds, forging dies, die casting and micro moulds, with each requiring application-specific tooling. This range of applications covers heavy roughing through to fine finishing. Dormer Pramet works with a wide range of die and mould manufacturers, from companies making small components, such as moulds for bottles and mobile phone cases, up to large forgings. Workpieces are often made from difficult to machine materials, such as pre-hardened steel, hardened tool steel and stainless steel. The most typical include P20, H13 and D2 tool steel materials, based on international standards. P20 is a versatile, low-alloy material that offers good levels of toughness and moderate strength. It is commonly used for plastic injection moulds and die castings. A versatile chromium-molybdenum material, H13 is suitable for applications where temperatures fluctuate during the machining process. It resists thermal fatigue and cracking, which can occur when creating the moulds at different stages. Finally, D2 is a high carbon and chromium tool steel with good levels of wear and abrasion-resistant properties. It is generally heat-treated to a hardness of around 62 HRC, where it can still be machined using the correct tools and machining strategies. The high levels of chromium give it a medium level of corrosion resistance when hardened. With such a variety of workpiece materials, sizes, and machining operations, having the right cutting tools is paramount. Dormer Pramet offers numerous standard and special tools – primarily milling cutters – to support the production of small batch quantities for specific applications. Moreover, due to this varied nature of the industry, end users require a good level of technical support and advice to acquire the right high-quality tooling. To help its customers build knowledge and expertise, Dormer Pramet has developed a dedicated team for the die and mould segment. As part of its expansion into the segment, Dormer Pramet has built a comprehensive high-feed milling assortment with several recent introductions. The SBN10 cutters, for example, are suitable for a variety of milling operations, from roughing to finishing, with a unique pocket design. A range of diameters are available from 16mm to 42mm, with multiple design options. This cutter is supported by a range of BNGX10 inserts, for depths of cut up to 1mm. The patented double-sided insert with four cutting edges provides a highly cost-effective and versatile option.
In addition, the new double-sided SNGX11 insert support high feed milling up to 1.7mm depths of cut. Added in November 2019, the assortment’s strong main cutting edge ensures high levels of durability and process security – especially when machining corners inside a pocket. With eight cutting edges, the squareshaped SNGX11 also represents an extremely economical solution. Another key operation in die and mould applications is copy milling. Dormer Pramet’s family of indexable milling tools includes the SCN05C cutter for semi-finishing and finishing of steels, hardened steels and cast irons. Its close pitch increases the number of teeth and enables at least 20% higher productivity than standard pitch cutters. Offering decreased levels of vibration, it has been optimised for smooth cutting of corners and pockets. Dormer Pramet’s SRC10 small diameter cutters are available in diameters from 25mm to 66mm and in a variety of styles. All incorporate through-coolant, a high number of teeth, and a pocket that gives maximum support to inserts with eight facets. The manufacturer’s indexable ball nose cutters (including ZP, XP, SRC and PPH), provide another choice when roughing to semifinishing a pocket. The Multiside XP range, for example, is a highperformance profiling solution, featuring the patented SideLok clamping system for a high level of stability, especially in five-axis machining of complex surfaces. From a round tools perspective, Dormer Pramet’s solid ball nose cutters support 3D profile milling and contouring of complex surfaces. The S2xx and S5xx assortment for hardened steels is available in short to extra-long lengths and feature a double-radius to reduce cutting forces and support higher feed. An enlarged web withstands radial forces generated when machining hardened steels, while a reinforced rake design increases stability and metal removal rates. The S7xx program of solid carbide cutters provide a multi-material milling option. All cutters in this range feature an extra margin on the cutting edge for a highly stable and secure process. A variety of diameters, lengths, flute designs and coatings, as well as roughing profile and corner radii options, make this assortment a good allround choice. In particular, the S766 and S767 end mills include differential pitch for chatter free machining, excellent surface finish and an unequal helix to reduce cutting forces and improve machining performance. The unequal helix enhances the effects given by differential pitch allowing even higher speeds. www.dormerpramet.com
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Manufacturing efficiency is on-time deliveries and satisfied customers In the current manufacturing environment, true manufacturing efficiency involves striking a flexible balance between maximum output and timely fulfillment of a wide variety of individual customer orders. The focus is on the end result: on-time product delivery and satisfied customers. By Patrick de Vos, Business Development Manager & Technical Education Manager at Seco. A machining workshop seeks to produce a certain number of parts, at a required level of quality, in the most efficient way, delivered on time. Traditionally, manufacturing businesses defined efficiency by return on investment. Success was measured in terms of continuous runs of thousands or hundreds of thousands of pieces and maintaining steady output from one or many machines was the goal. From that point of view, a machine that was running and making parts was considered efficient. Today, manufacturers more frequently carry out low-volume/highmix production scenarios tailored to varying customer needs. Lot sizes may range from hundreds of pieces to single digits. However, even when all the machines in a shop are running nonstop, customers nevertheless could still be waiting for parts they ordered. High-volume output strategies conflict with the flexibility and complex planning requirements of low-volume production scenarios. While balancing output and demand, manufacturers must be careful to maintain product quality. Dealing with parts of unacceptable quality will force unplanned changes in production schedules, consume time and money and delay deliveries. Haphazard planning will cause production stoppages and leave machines sitting idle while shop floor labor costs multiply to handle the unforeseen problems the stoppages create. Workpiece quality in manufacturing generally is described in terms of meeting part dimension and surface finish requirements. An additional measurement of quality, namely on-time delivery performance, can be called process quality. The manufacturer must control processes to the degree that the planned production time is sufficient to complete the work and deliver it to the customer at the promised time. A shop’s machines can run 100% of the time, but if poor delivery performance disappoints customers and they stop buying its products, the shop will fail. Keeping customers happy is a primary goal but concentrating on customer satisfaction alone can threaten profitability. Focus on the customer is critical, but a manufacturer must maximise utilisation of its equipment while also meeting customer part volumes, quality requirements and delivery requirements.
Promises and planning Successful manufacturing involves co-ordinated interaction of multiple groups within the manufacturing organisation. One group promises customers certain outcomes regarding the cost, quality and time of delivery for the parts they order. The other groups in the organisation, including engineering, purchasing, workshop personnel and administrators, make sure that those promises are kept. The various groups define efficiency differently. Machining staff want to optimise individual machining processes for maximum output. Groups outside the technical machining process concentrate on improving the performance of the system overall. Their analysis covers issues such as overall equipment effectiveness (OEE) and labor productivity.
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The heart of efficiency To describe manufacturing efficiency in basic biological terms, the heart of any production operation is the machining process. Although the body’s heart is indispensable, it does not work on its own. It is part of a system that includes the rest of the body and the brain. In manufacturing, if the heart is machining technology, the body is the overall manufacturing organisation including engineering, business planning and administration. The brain of the organisation is the group of personnel who co-ordinate all elements of the system. However, the brain cannot simply decide that the heart should pump faster, just as a person cannot control his or her heartbeat just by thinking it will be so. In the same way, a machining process is not always controllable from a rational perspective. In today’s world of digital technology and the Industrial Internet of Things (IIoT), people – especially young people – want answers and clear rules for controlling the machining process. Unfortunately, in many cases there are no rational rules, and it is necessary to accept, react to and solve the unexpected problems of machining. In a perfect world, shop personnel have the knowledge, skills and experience needed to handle unexpected problems in the machining process. However, many shop owners complain that it is difficult to maintain a sufficiently capable workforce. Training would appear to be a way to overcome the shortage of skilled workers; surprisingly, though, some shop owners say their training efforts often are wasted because employees lack a positive mindset towards learning new skills. Owners report that in many cases where they offer technical training, employees believe that they already know enough to do their assigned work and require no additional training.
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Total manufacturing time Analyzing a shop’s efficiency and eliminating waste can provide additional time for machining and thereby greater flexibility and responsiveness to customer needs. The total time required to manufacture a part is the sum of many separate activities. They include actual machining time, tool handling, workpiece manipulation, quality checking, unplanned problems, waiting, administration tasks and others. Some of the activities are essential and cannot be eliminated, such as tool changes and workpiece manipulation. Beyond required activities, shops also spend time handling unforeseen circumstances such changes in planning, quality problems and waiting for missing tooling or workpiece materials. In one case, a shop reviewed a number of different activities involved in machining a part to find the amount of time each consumed. Actual machining time was 15% of the overall production total, while set-up and waiting consumed a quarter of the time and unplanned problems, such as missing or delayed tooling or stoppages to clear excessively long chips, represented another 25%. By reducing the time taken for unplanned problems, set-up time, tool handling, waiting and administration, actual machining time grew to 50% of the total. The expanded time gave the shop greater flexibility to match machining operations to specific customer job requirements. As a result of a time-saving investigation like the one noted above, another shop was able to triple the hours that spindles were actively cutting parts. However, the shop found that part output did not triple in return. Further study revealed a number of issues that contributed to the phenomenon. A major issue was that the original process time included off-machine deburring. The time-saving initiatives indicated that deburring could be performed more efficiently on the machine itself. However, when the off-machine deburring was moved to the machine tool, overall spindle time increased to account for the deburring operation. The situation shows that time savings in one area can result in increased consumption of time, or apparent decrease in efficiency, in another area. The lesson is that operational changes must be considered in relation to the manufacturing process overall. It is a difficult balance, and there are no general rules except to look for ways to use the available time as effectively as possible.
Changing plans Achieving efficiency and flexibility require continual adaptation to changing production demands. Changes often originate externally when a customer modifies a product design or changes the number of parts required. The manufacturing shop must alter its plans in response, but that can disrupt the shop’s plan overall and lead to a disorganised response that causes further disruption. When planning is disorganised, some shops push workpieces through the workshop in random ways, putting the work on any machine available and causing more problems. The situation can become a vicious circle. When planning issues begin, they can multiply like a virus. A small disruption soon can become large. And like a human virus, the disruption can be very difficult to overcome.
The spare capacity option One way to effectively raise shop efficiency and flexibility is to add spare machining capacity. The concept of spare capacity is foreign to the majority of shops, and a shop’s finance department may endorse investing in new machining capacity but demand that the new equipment does not sit idle. They see a machine as a one
or two million dollar investment, and can’t understand that when it is purchased as spare capacity it may stand unused and not regularly do anything. But in reality, it does do something significant: it ensures happy customers. It is a useful back-up that supports flexibility and facilitates handling of unforeseen problems. In some situations, instead of purchasing a back-up machine a shop will work with its own equipment until overload occurs, then enlist a subcontractor. But if that subcontractor is struggling with the same problems of too much work and insufficient staff, the responsibility simply shifts to a different party. It is extremely difficult to convince shops to build spare capacity with the possibility it will be used rarely at best. The pressure to deliver on time may extend the actual production time. If manufacturing a job under normal conditions takes a week, but the customer wants an absolute guarantee that delivery will be on time, a shop may state a lead time of two weeks to provide a time cushion/buffer. In another instance, if a customer needs one completed workpiece by a certain date, a shop may start two workpieces to have a backup in process in case something unforeseen happens to the first part. These makeshift practices needlessly consume production time and expense and actually extend delivery times beyond what they would normally be.
Multi-tasking choices Another way to increase shop efficiency and flexibility, albeit expensive, can be to employ automation in the form of a multitasking machine and a pallet pool. A shop can quickly change an automated cell from one job to another and use the pallets to build and store future set-ups. Such a system can be built around a multi-tasking machine surrounded by workpiece pallets and accompanied by a tool magazine with multiple tools, all serviced by a robot. In this arrangement, day shift personnel can set up the machine and pallets to process a variety of parts, and the night shift can produce the parts. This solution, however, is relatively expensive and is not the level of investment that every company can afford. An organisational impediment to the multi-tasking approach is the typical factory practice of arranging machines based on function alone, as in maintaining a separate milling department, turning department, and so on. In many cases, it is better to have machines organised into cells where each group of machines has certain process capabilities suited to specific groups or families of workpieces. Grouping of machines simply by function also encourages shop personnel to describe themselves in a limited way, such as lathe operator or milling machine operator. Training operators to be multifunctional and able to operate different types of machines gives a shop the flexibility to balance its own internal capacity issues.
Conclusion Present-day efficiency in manufacturing includes a strong emphasis on customer satisfaction in addition to finding the best ways to machine parts. Manufacturers must balance efforts to consistently provide on time delivery with the need to be profitable. In addition to optimising the machining operations, careful attention to issues including part and process quality, planning organised from the perspective of the manufacturing organisation as a whole and continuing analysis of the elements of machining time consumption can significantly expand the time available to machine parts and result in increased flexibility and efficiency. www.secotools.com
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Why value, quality and partnership trump cost in capital investment Even in challenging times, choosing the right investment strategies can enable you to contend with low-cost competitors to achieve sustainable growth, writes Rob Sutton. Times are tough in Australia’s – and the world’s – manufacturing sector. In the current COVID-19 pandemic crisis, we’re all trying to balance our need for preserving cash versus investing in capital infrastructure to get through and be ahead in the recovery beyond. However, given that the lead times for ordering and deploying large machines is long, we cannot always afford to delay. To illustrate this, here at Sutton Tools we are working on some very large projects in Europe that called for further capital expenditure to increase our capacity to deliver. In March we received a $1m thread grinder from SMS in Germany that is already in production making automotive forming taps for South-East Asia and Europe, and is proving very effective. Despite the crisis, we are still receiving orders for these types of products. In April a large Indonesian subsidiary of Honda ordered 3,000 automotive forming taps – and that order will go straight onto that machine.
Investing to compete For Sutton Tools, as an Australian manufacturer up against foreign competitors with lower operational costs, we need to continuously communicate the value we add. There are essentially two pools of products: those with an opening price-point from China and other low-cost companies, and high-productivity tooling typically coming from Germany and Japan. We’re competing in both Australia and other countries in this second, higher-priced product pool.
Therefore, our major strategic advantage is provision of a full range of products and service offerings, as well as their quality. We’ve had some great success stories internationally – for example, in the French aerospace sector. This international expansion of our business is due to the repositioning of our products upwards in the market. That flows through to our investment strategy. When buying new capital equipment, pricing is one element of the equation, but not an important consideration. Productivity and value add are more critical. In the case of the German thread grinder, it was the most expensive on the market – but it delivers the lowest cost per tool. Although it costs roughly double that of some of our other machines, it can run over the weekend unattended with a full range of cassettes. In the case of the Indonesian order for Honda, it will produce the taps around 40% faster – and it will give us a perfect tool every time. It’s not always the case, but technology like this offers a paradigm shift in productivity, and therefore our global competitiveness.
Investing in partnership Over the years we’ve narrowed our supplier base because we value long-term relationships. In the case of partners such as SMS or ANCA, it lets us develop the capability of their machines to produce at a better level, on average, than what’s already in the market.
Sutton Tools forms partnerships with machinery suppliers such as ANCA where it collaborates in developing the capability of their machines.
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CUTTING TOOLS
Sutton Tools recently acquired a thread grinder from SMS in Germany that is already in production making automotive forming taps for South-East Asia and Europe.
The SMS thread grinder has a lot of modifications that weren’t commercially available on the standard machine. This has enabled us to produce our top-selling threading tool in a single operation, where it used to take three. The standard configuration could have done it two operations, but we put in special requests and SMS reengineered elements of the machine to achieve a single operation process. The win for us is a saving of labour costs on manufacturing automotive taps. As we’ve done with ANCA, we’ve developed specific loading and clamping systems for SMS machines that hold much tighter tolerances over unattended production. Our clamping systems for making aerospace super-alloy material application end mills are not commercially available to other SMS customers. As a result, we can hold 3-4 microns concentricity over 24 hours of grinding those tools, whereas the standard system offered more like 10-12 microns. The tool coating machines we purchase are another example of our strategy for investing for good technical reasons. We’ve gone for the most expensive option because the supplier is the market leader and our long partnership has allowed us to leverage the relationship – not only in the purchase of new technology, but for the ongoing support of our older coating machines. Therefore, supplier selection is another critical consideration when making capital investments. For us, it’s not just about buying the right machines; it’s having that depth of relationship that allows us to go over and above what’s currently commercially available and create a better solution for our own customers.
Looking ahead At Sutton Tools we put our longevity and sustainability down to quality investment. We see it as a way to weather not only global competition, but continuous economic storms like the Global Financial Crisis (GFC) and acute crises like the one we’re in now. It’s only one part of the puzzle … You must also have a very good understanding of the global supply dynamics around the products that you’re producing. You can always buy the best machines with the best productivity, but unless you have complementary product management and a medium-to-long-term vision for how to bring those products to market, they won’t save you. Nonetheless, at an unprecedentedly difficult time like this – and looking back over 102 years of our family business – I can confidently assert that an investment strategy based on value, quality and partnership rather than mere cost is a very important factor in being a sustainable business. Robert Sutton is the Commercial Director at Sutton Tools. www.suttontools.com
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Precision Metal Group – Nurturing skills, building capability A commitment to upskilling workers and growing both its client offering and certification range have all been vital to Precision Metal Group’s success. By Brent Balinski. Welding – excuse the cliché – is in Jason Elias’ blood. Raised by a blacksmith/welder father, Elias took up the torch at 12 and went on to an apprenticeship at Transfield Services (now Broadspectrum), before founding Precision Metal Group (PMG) at the beginning of the millenium. Elias is passionate about nurturing welding skills, and his company’s tag line is “servicing a dying trade with a new generation.” It’s not just welding at PMG, but the varieties of welding they handle are many: orbital, sub arc, pulse, robotic, and more conventional methods. Chasing growth through different kinds of projects has also led the NSW-based company to amass a long list of certifications, each of them important in proving they’re up to the job as a supplier. The company’s two decades of growth, which saw its headcount reach a high of 52 in March, have been, according to Elias, the result of “chipping away and … just adding more and more services over the years”. “Clients have seen the need to add more products to their range, or have even been at the point where there was a gap in their manufacturing facility,” he explains. “They would ask us to look into it, so we would look into buying new machinery – advanced machinery, upgraded machinery – so that we constantly stay above the marketplace so we can stay competitive. “Laser equipment, laser measuring, co-ordinate measuring machines (CMM), laser cutting, robotic welding, automated press brake machines with robots. New CNC multi-axis machines and laser scanning and drafting software. These are the things that we’ve got on order and that we have to stick with,” he adds, referring to the disruption stemming from the coronavirus (COVID-19) crisis. “As we added machinery, we also added the personnel to the business at the same time, and that’s how we’ve been growing over
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the years. In the past four or five years we’ve been focussing on international certification so Australian manufactured components can be recognised on the international scale and not just to Australian standards.” Professional development has been vital as well, he adds. PMG opened a welding training and qualification centre last August, offering qualifications in AS5351 CC3 (necessary for infrastructure work), ISO 3834 part 2 (for mining and defence) projects, and DIN2303 (a German military standard, for work on armoured vehicles.) “That’s been the focus from day one,” says Elias about training. “Understanding what the client needs, sourcing the tools and the knowledge and having that ‘one-stop shop’ service – whether it’s the customer service, product service, the design engineering service. You’ve got to understand what the client needs and try and offer them a solution for everything that might be possible.” The ‘one-stop shop’ capability takes in on-site and off-site structural, welding and fabrication work; cryogenic tank inspection, repair and rebuild; and even machinery hire. Some of the industries the company serves include defence, oil & gas, construction, marine, manufacturing, mining, rail and agriculture. “The welding engineering is our forte,” says Elias. “The maintenance and sustainment of manufacturing sectors – and that’s shut-down, maintenance on the plant and equipment, reverse engineering, Defence. And then infrastructure fabrication. They’re our three main things.” The maintenance work roster features several big-name clients, such as CSR Building Products, for which PMG has become qualified as a principal contractor.
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Precision Metal Group’s facility in Wetherill Park, NSW.
Focus on certification According to Elias, his company is the only one in Australia with both the structural steel work fabrication and erection certificate AS 5131 CC3, as well as the welding certification ISO 3834–2 and DIN2303. Capability building for infrastructure work has seen PMG join a small group of “only three or four” companies with pre-qualification for Transport for NSW projects. He believes that more Australian companies should spend the effort reaching PMG’s level of certification, “to allow the Australian manufacturing sector to support the big infrastructure spend across New South Wales and Australia as well.” Recent projects include signposts for traffic signs on the Scone bypass, fabricated and supplied to NSW’s Roads and Maritime Services (RMS) agency, and new brackets to support tolling equipment in Sydney’s Cross City Tunnel. The company is currently supplying a total of approximately 27 tonnes of fabricated and painted steel to the Stockton Bridge step joint rehabilitation project, also for RMS, which is scheduled to continue through to April next year.
Having to retool It is virtually impossible to speak to a manufacturer or anybody else nowadays and avoid the topic of COVID-19. In the short term, the pandemic has drawn attention to the desirability of a manufacturing sector that is able to produce the medical equipment and other goods a country needs. Meanwhile, there is pain, of course, as well as numerous manufacturers heroically scrambling to pivot to indemand products. What the longer-term effects will be is anybody’s guess. For PMG, it has complicated a move to a new site in Wetherill Park, and has led the business to pursue new opportunities.
ISO 3834 certification for fusion welding earned the attention of Rheinmetall, project lead for the $5bn Land 400 phase 2 project, which will deliver 211 Boxer Combat Reconnaissance Vehicles (CRVs) to the Australian Government. After the German-based contractor considered PMG among the potential local content providers, it became clear that meeting the DIN 2303 standard would be necessary.
“We’re retooling because we have to retool,” Elias says, matter-offactly.“We put a lot of effort in, in the background over the years for certification, restructuring the business, tooling, machinery, advanced manufacturing equipment – all to be competitive. And obviously the coronavirus has kicked in so now it’s, ‘Okay, what can we do with what we have to help fight the pandemic and ride the wave until things get back to normal?’”
“As they have their hurdles, we take those issues on and try and find a solution for Rheinmetall to basically have their Australian SME supply chain up and ready,” says Elias of the $2.8bn Australian Industry Content requirement to build CRVs. “We tackled that certification in under four months. We flew out the German certifying body into Australia. We are the first in the Southern hemisphere to hold that certification, and not just in Australia. We’re pretty proud of that, and that secures us a lot of work with Rheinmetall and also the export market for their supply chain.”
Most recently PMG has developed a steel emergency deployment furniture range, flat-packed and tool-free for easy transport and assembly, as well as a rapid assembly mobile morgue and stretcher/ body trays, and fogging or misting decontamination units. Like many other Australian manufacturers, PMG has put its hand up to help in the crisis, and is ready to do what it can if governments need it. The team at PMG also see positives in this situation: it has reminded the public that manufacturing matters. Let’s hope it doesn’t forget again.
The first 25 CRVs are being built in Germany. PMG supplied prototype brackets to the first CRV, delivered to the Government in September. It has since expanded its work on the program to include battery boxes and blast attenuation seating frames. The latter is through a joint venture with German company Probatec. “The certification, quality management system, policies, procedures – without them being in place, you wouldn’t be able to practice what’s required and what is the norm on an international level,” Elias adds. “Then you would just simply miss out, not able to supply the documentation to prove and trace your quality of work.”
“The negative is the coronavirus is hurting a lot of countries, a lot of businesses, around the world,” says Elias. “But the positive side is a lot of countries will understand the requirement of manufacturing in their own backyard and hopefully support everyone on the back end of the coronavirus, and we will come out stronger and wiser for it. “In regard to where do we see ourselves at by the end of this year? If manufacturing keeps going and the Australian manufacturing sector grows – which there is a lot of potential for now since the coronavirus – we see this as a positive return to Australian-made products. That’s how we see it.” www.precisionmetalgroup.com
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Kaeser: A ‘Tasti’ solution for control and efficiency New Zealand food manufacturer Tasti Foods recently invested in a complete Kaeser compressed air system that would not only meet the compressed air demands of its new wholefoods manufacturing hall, but also deliver compressed air reliably and efficiently to the entire manufacturing facility. For maximum efficiency, control and connectivity, a Sigma Air Manager 4.0 master controller was installed. From baked bars, nut bars, muesli and granola and cereal-style bars, to raw fruit and nut snack packs, dried fruits, nuts and baking products – you will find products manufactured by Tasti Foods on most supermarket shelves throughout New Zealand and Australia. Now in its third generation, Tasti Foods remains proudly New Zealand-owned and -operated. The company began life back in the 1930s when two friends decided to start producing crystallised ginger. Fast forward more than 80 years and a workforce of over 250 staff now produce a whole range of food products, as well comanufacturing for a number of internationally recognised brands. The company also supplies nearly every supermarket chain in Australia and New Zealand with private label snack bars.
Operating an efficient manufacturing facility Tasti has always manufactured in New Zealand and has been based at its current purpose-built facility on the Te Atatu Peninsula for almost 50 years. In that time the factory has been extended and refitted several times as the company has grown. This modern facility is fully automated and designed to deliver the highest-quality products, and Tasti continues to invest heavily in the required plant and facilities to ensure that it can operate efficiently and to the highest quality standards. Compressed air is mainly used for the automation of equipment in the manufacturing process. Some of the most sensitive pieces of equipment that compressed air powers at Tasti are the sophisticated and robotic packing machines. Here, compressed air powers cylinders that perform a number of critical tasks from; picking and making boxes, placing the products in the boxes, to then sealing the boxes up ready for dispatch. The equipment operates very quickly – it is able to pack more than 800 products a minute. However, to do this it relies on a constant supply of highquality and dry compressed air. The company’s existing compressed air system was struggling to reliably and efficiently meet the compressed air requirements at Tasti’s facility. Recurring failures in the compressed air line were creating downtime in some areas of production. At the same time as these issues were occurring, Tasti had begun planning the expansion of its manufacturing facility to include a new hall specifically to manufacture its burgeoning wholefoods ‘free from’ product range. As Tasti started the planning process for the new build, elevated electricity bills had additionally led it to invite Energy NZ to conduct an audit on its existing manufacturing facility. One area the audit highlighted was that cost savings could be made by investing in compressors that were connected through a controller to each other and were well staged. As the manufacturing facility had developed over the years, the compressed air system had grown and changed. The existing compressors were therefore not linked together and so they had no control around staging. There was also no ring main connecting all compressed air applications in the facility together to one compressed air source. All of these factors together led Matthew Barber, Maintenance Engineering and Environmental Manager at Tasti, to take the new build – which would require compressed air – as an opportunity to address the entire compressed air system for the manufacturing facility.
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The complete Kaeser compressed air system that was recently installed at Tasti Foods.
As Barber explains: “We saw the expansion as the ideal opportunity to find one solution that would not only solve the issues we were having with the existing compressor system, but would also allow us to get the whole plant set up on a ring main from one central compressor room. In addition, we were keen to digitalise the compressed air system – linking all of the compressed air equipment together for optimum efficiency and system control.”
Meeting the criteria Barber invited a number of compressed air providers to review their requirements and recommend a solution. Working closely with the Procurement Manager, he developed a set of selection criteria by which they could measure not only the overall suitability of the recommended compressed air equipment – including design, quality, digitalisation and efficiency – but also other key factors to Tasti, such as after-sales support, service, back-up and training. Kaeser Compressors was invited to tender for the project and was successful in meeting Tasti’s criteria. As a result, a complete Kaeser compressed air system was recently installed. A ring main was also installed, which now connects all of the compressed air applications throughout the manufacturing facility to the new compressed air system. The compressed air system comprises of three ASD series rotary screw compressors alongside a complete compressed air treatment package, which includes two TD series refrigeration dryers. For total control and digitalisation, the entire compressed air system is controlled and managed by a Sigma Air Manager 4.0 master controller.
Industry 4.0-ready technology The latest generation of ASD series rotary screw compressors from Kaeser once again push the boundaries of compressed air efficiency. Not only do they deliver more compressed air for less energy, but they also combine ease of use and maintenance with exceptional versatility and environmentally responsible design. At the heart of every ASD compressor lies a premium-quality screw compressor block featuring Kaeser’s Sigma Profile rotors. Flowoptimised for impressive performance, these advanced rotors help Kaeser ASD compressors set the highest standards for efficiency.
AGRICULTURE, FOOD & BEVERAGES
Tasti Foods’ modern facility is fully automated and designed to deliver the highest-quality products.
In fact, they achieve power savings of up to 15% compared with conventional screw compressor block rotor profiles. In addition, maximum performance and energy efficiency are assured thanks to the inclusion of a super-premium efficiency IE4 motor. Furthermore, the inclusion of the innovative Electronic Thermo Management (ETM) system dynamically regulates fluid temperature. This not only reliably prevents condensate formation and associated moisture damage but saves additional energy. For Tasti, incorporating the Sigma Air Manager 4.0 master controller was the final piece of the puzzle to ensure they had complete control of the entire compressed air system. A key technology for Industrie 4.0, the Sigma Air Manager 4.0 utilises adaptive 3-Dadvanced control to make air generation and treatment even more intelligent, reliable and efficient. By predictively calculating and comparing various operating scenarios, it selects the most efficient to suit Tasti’s specific needs at any one time. Compressor flow rate and energy consumption are therefore always optimally matched according to actual compressed air demand. In combination with the integrated multicore processor industrial PC, the adaptive 3-Dadvanced Control is able to ensure optimised performance for Tasti at all times.
Delivering compressed air when and where required Now up and running at Tasti’s plant, the new Kaeser compressed air system is delivering a reliable, efficient and high-quality source of dry compressed air throughout the manufacturing facility – exactly where and when it is needed. Barber concluded: “The new Kaeser compressed air system has helped us solve a number of issues. The SAM 4.0 in particular has allowed us to develop a fully connected compressed air system, giving us a lot of control over for example our energy usage.”
For maximum efficiency, complete control and connectivity of all components within the compressed air station, a SAM 4.0 master controller was installed.
The standard ASD series rotary screw compressor models from Kaeser are available with drive powers of 18.5kW to 30kW and produce flow rates from 2.58 to 5.53 cubic metres per minute, designed for pressures 7.5 to 15 bar. The Sigma Air Manager 4.0 master controller can control up to 16 compressors within a compressed air station. www.kaeser.com.au
www.tasti.co.nz
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ICT International grows its footprint both locally and abroad NSW-based manufacturer ICT International has marked 40 years of operations with the opening of an expanded Armidale facility, bringing with it greater in-house capabilities, increased manufacturing capacity and an increase in regional jobs. The upgraded facility has enabled ICT to double its workforce and substantially increase its output to meet the demands of the international markets that it supplies. Founded in 1980 by Susan and Peter Cull, ICT developed precision instruments to accurately measure, monitor and understand how water could make a significant difference to some of the major challenges in food production and land use – decades before the term “climate change” become part of everyday language. A regional success story, ICT’s research & development program has allowed the organisation to design, develop, produce and export their quantitative monitoring technologies to some of the harshest environments across the globe. The company has worked collaboratively with leading soil, plant and environmental scientists in Australia and overseas and in the process have grown local skills, capabilities and employment opportunities in the region. Found across the globe, ICT’s products have been installed to measure plant water use (via sap flow) and water stress (psychrometry), along with the effects of weather and environmental change in regions across the world including: the Amazon rainforests; California’s ‘tallest trees in the world’; mine sites in Australia and Peru; and trees growing on the permafrost in Northern Canada; and street trees in Germany. Dr Peter Cull, now the Managing Director of ICT, says that the company’s success can be attributed to having a product wedded in scientific fact and building a trusted business network. “From the outset, I knew that the relationship between our use of water for irrigation and the environment would become very important,” says Peter. “My PhD in irrigation monitoring gave me the scientific basis to pursue a practical means to prove how water use could be better managed to achieve better outcomes for primary producers. Now, the same technology is helping to understand climate change across the globe. “What we have developed is world-leading, there is nothing like our products in the world, our technology is fitted to the smallest of rice plants to the largest 14 trees in the world and it has only been possible because we never deviated from the science and we always collaborated.” Susan Cull, now Chief Executive Officer of ICT, adds: “In 1980 we dared to put a scientific soil moisture measuring device, a neutron probe, in the hands of farmers, to take soil moisture readings. We then told the farmer how to use a Hewlett Packard calculator to gain soil moisture readings. We did this and everyone said we were mad. From our point of view the farmers were managing the water resource and we learned from the beginning by supporting them we were able to build a business that still, to this day, has its first client – 40 years on.
ICT International is a globally recognised manufacturer of scientific measuring and monitoring equipment to better manage water and its interaction with plants.
response to climate change. They can also be employed to evaluate plant genetics, and in commercial agriculture and horticulture to significantly increase yields and quality while reducing irrigation water use especially in tree crop and vine production. Commercial clients are building significant IP regarding the crop’s response to the environment, located in the “cloud”. Recently ICT has been sharing its experience and insight for the benefit of other Australian manufacturers, by participating in the Advanced Manufacturing Growth Centre (AMGC)’s Manufacturing Academy. Michael Sharpe, Director of Industry at the AMGC said: “ICT International is a shining light in Australian manufacturing, demonstrating how great thinking, paired with research & development, collaboration and advanced manufacturing techniques can ensure a business can compete on a global scale and succeed. “There is a reason ICT International feature on AMGC’s Manufacturing Academy about market reach. It is simply because they are good at it. The proof of this is the over 55 countries they export to and the countless long-term clients they have.” www.amgc.org.au www.ictinternational.com
“In business today, if you do not continue to innovate you will be left behind. ICT has never been afraid to innovate and collaborate, we have continually looked at how we can improve in light of new technology, or research. Today, we can remotely log into our clients’ monitoring results, hold a video conference, and manage our supply chains all from regional Australia and we are more resilient because of technology and partnerships we have.” ICT’s unique family of digital sensors and dataloggers has been developed to measure key plant and soil parameters to advance research in the sector. They can be used to address physiological and yield limitations of plants to water stress, or ecosystem
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The ICT International team.
AGRICULTURE, FOOD & BEVERAGES
Enmin vibratory equipment a key ingredient in Whittaker’s continued growth Founded in New Zealand by JH Whittaker’s more than 120 years ago, JH Whittaker’s & Sons remains a family-owned and operated company now managed by a third generation of the Whittaker family, Andrew and Brian, along with a fourth generation, Matt and Holly, who also work within the business. With nearly 200 staff at its factory in Porirua, Wellington, Whittaker’s produces the highest-quality chocolate products for both the domestic and export markets. During the 1950s Whittaker’s developed the Peanut Slab. It has since become an iconic product and the recipe has never changed. In the 1990s the company started to make its first chocolate blocks, which are now New Zealand’s favourite blocks. Whittaker’s is a ‘beans to bar’ company, controlling the whole process from roasting the beans to the final product. This is to ensure only chocolates of the highest quality are produced. With a philosophy of purity and environmental consideration, the company does not use palm oil or genetically modified ingredients in the manufacturing process. Evidence of Whittaker’s popularity and recognition in New Zealand is reflected in numerous awards. This includes being voted New Zealand’s most trusted brand in the Reader’s Digest annual awards for the past eight years, as well as being voted New Zealand’s most loved brand in the Colmar Brunton survey for the past eight years. Whittaker’s continued pursuit of innovation in chocolate can be seen in the introduction of the Artisan & Destinations Collections – chocolate with the most delicious ingredients sourced directly from New Zealand’s finest and equally passionate artisan producers. Following the success of this line, Whittaker’s introduced the Destinations Collection, sourcing the most unique ingredients from all over the world. Herbert Aregger is Whittaker’s Engineering Manager. His first experience with Enmin was the purchase of a solitary vibratory feeder bought through a third party in 2013. It was this initial experience with the quality and workmanship of the Enmin vibrators that was instrumental in Aregger requesting Enmin to design and build a custom piece of equipment for a new product line. This new equipment would need to facilitate up to six different flavours of chocolates being weighed and put into assorted bags. Enmin’s custom design and build ability were ideal for this sort of project; the requirement being identified as a multi-pack delivery system connected to a six-split multi-head weigher. This was to be a full 360-degree turnkey installation by Enmin, a crucial part of which was the requirement that this new equipment would integrate seamlessly with existing components. “Right from the start, the communication from Enmin was outstanding,” said Aregger. “Every question was taken seriously, and every challenge was addressed and discussed. Starting with an erecting plan of the platform, the entire project was designed using Enmin’s state-of-the-art software, Autodesk Inventor.” All components were prefabricated at Enmin’s plant and then shipped over to New Zealand for assembly. “The integration with the other components was seamless,” Aregger added. “All the mechanical components fitted with minimal or no modifications and electrical interfaces were also prepared by Enmin. The entire process was well thought through by them. “Cabling of the equipment was also prepared and any modifications requested (mechanical or electrical) were taken seriously and executed in a timely manner with good workmanship. Overall it was a great install with no major issues.”
Testament to Enmin’s through planning and commitment to customer service is that the entire installation was delivered in the original time frame. “Since the installation it has become a very efficient and reliable line that’s gone above projected sales,” Aregger remarked. Whittaker’s also recently commissioned a mixing line that was once again designed and built by Enmin. “Enmin has helped us increase our efficiency and productivity and we are very pleased with this new equipment; manual handling has been reduced by 70% and our output doubled,” Aregger explained. “I certainly intend to keep dealing with Enmin in the future. The quality of the goods, reliability, and ease of dealing with them are crucial factors; e-mails are always answered swiftly. Often a phone call is received to discuss the problem or information required. I feel we have an honest working relationship with Enmin and are looking forward to this continuing in the future. “Enmin is an important business partner who will continue to assist us in making delicious chocolate using the best possible ingredients coupled with world-class people and world-class machinery.” www.enmin.com.au www.whittakers.co.nz
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New wearable technology eases the load of manual labour for employees With people now living on average well into their eighties, and retiring later as a result, the issue for many companies is how to retain and support staff as their health needs increase, particularly those specialising in manual tasks. Leading German medical technology company Ottobock Industrials is revolutionising the capacity for manual overhead labour with an innovative wearable tech body suit, the Paexo Shoulder exoskeleton, which could provide major benefits for a vast range of different industries and professions in Australia. The upper body exoskeleton, which is now used in 500 plants and factories worldwide, has just launched in the Australian market following its initial release 18 months ago in Europe. Retailing for $6,900, the Paexo Shoulder is now in international use across many different regions including most countries in Europe, the US, Canada, Mexico and India. The suit has already been used in a number of industries, including manufacturing sectors such as shipbuilding, automotive, rail and aerospace; as well as construction & trade, and general maintenance and repair. It also has the potential to be used in farming and agriculture; food processing; engineering and any other profession that requires raised arm movements.
How it works The Paexo Shoulder is a passive exoskeleton that does not need an energy supply, so it can be donned within a moment’s notice without the need to power up. Workers wear the Paexo Shoulder close to their body, similar to a backpack. It provides mechanical support for individual body segments in certain postures and movements through the interplay of springs or elastic bands. This type of preventive relief could reduce the risk of work-related musculoskeletal disorders in the shoulder region over the long term. The exoskeleton was designed to relieve muscular stress for workers who specifically spend long periods of time working with their arms raised. When people wearing the Paexo Shoulder raise their arms, the pads around the biceps transfer weight to the hips thanks to mechanical cable pull technology. This provides noticeable relief for the muscles and joints in the shoulder region. It has been trialled and used with great success in the following industries:
Automotive The exoskeleton launched in Germany in 2018 after six years in development with Volkswagen Group, which wanted to extend and support the working lives of employees tasked with doing strenuous overhead vehicle work. Amongst other companies, Volkswagen, Audi and Porsche have successfully trialled the exoskeleton in Europe in order to reduce all round muscle fatigue for their workers where possible. Other large-scale manufacturers in the US, like Toyota, GM or Ford, are all similarly experimenting with exoskeletons to keep their workers safer and ensure they can perform their jobs for longer. Feedback from the testers has showed that systems such as exoskeletons significantly reduce the amount of physical effort required. Audi’s goal was to choose a device that will provide ongoing support for its production line employees. The technology is being used across the assembly line, paint shop and tool construction stations.
Aviation Workers in aircraft hangars are often required to repair parts of planes, and other associated tasks overhead. Aerospace giant Airbus, which employs more than 130,000 workers worldwide and prides itself on innovation, has been testing the Paexo Shoulder
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exoskeleton in its structure production, paint shops and final assemblies and feedback has been positive. Recently, Ottobock was highlighted prominently in a presentation given by Airbus’ COO Michael Schoellhorn at the company’s annual 2019 Innovation Day held in Toulouse, France. In his presentation – The Industrial challenge at Airbus: Production System Excellence as an Enabler for Continued Success – Schoellhorn outlined how the company is looking to digitise and automate in a people-centric way in order to adapt, innovate and get the best out of their workforce. The exoskeleton is also currently being tested at a turbine manufacturer, while Dutch airline KLM is evaluating the exoskeleton with workers donning it when required to perform cleaning tasks using very elongated cleaning rods requiring extensive arm use.
Construction German company Thor Industries, which provides qualified staff for the household, building and supply technology sector, was one of the first companies in Europe to use the Paexo Shoulder exoskeleton. The company, which has around 1,000 employees, is known for being extremely loyal to workers and in 2012 was named one of the top 100 employers among German SMEs. One of Thor’s prime objectives is to keep staff turnover as low as possible, in part by ensuring the highest levels of workplace health and safety. Employees were impressed by the device, saying it immediately relieved strain on their muscles on a number of tasks including overhead welding and electrical installations under ceilings.
SAFETY
Safe Work Australia reports that musculoskeletal disorders are highly prevalent in the Australian population, affecting 6.9 million people between 2014-2015 according to the Australian Institute of Health and Welfare. For Australia’s workforce, work-related MSDs are the leading workplace health & safety problem, both in frequency and cost, which in 2012-13 totalled more than $24bn. Given the need for our increasingly ageing workforce to remain healthy and productive, implementation of more effective workplace risk management practices to reduce MSD risk is increasingly urgent. Whilst MSDs may result from a single event, more commonly they arise from cumulative exposure to one or more hazards over an extended period. Many of these issues are caused by manual material-handling tasks, which include lifting, lowering, holding or carrying loads. Twisting, bending and overhead work also increase the risk of a work-related disorder, decreasing productivity.
Shipbuilding Baltic Yachts, based in Jakobstad, Finland, is one of the leading shipyards for large custom-made yachts. The company now plans to use exoskeletons regularly in production after a successful trial run. The company, which employs around 280 workers, specialises in building high-performance carbon-fibre yachts. A number of ergonomically challenging tasks are performed during yacht-building, such as laminating the carbon-fibres above head and shoulder height. This strenuous work puts particular strain on the muscles and joints in the arms and shoulders of employees. Baltic Yachts initially tested the Paexo Shoulder exoskeleton with six production employees. The Paexo Shoulder supported the employees in tasks such as laminating the hull and setting up the oven to harden the carbon-fibres. Test results were extremely positive with employees feeling considerable relief with the exoskeleton during overhead and above shoulder height work. The company felt the device would improve productivity and workplace ergonomics.
Sound engineering Recently a leading German sound engineer sourced the Paexo Shoulder for his colleague who used it on a movie shoot in Africa for a German production house. During movie shoots, the sound assistant’s job is to hold the boom – an extendable rod with a microphone at the end – as close as possible to the actor who is speaking, so as to obtain optimal recording quality without the boom and microphone showing up in the frame.
“The Paexo Shoulder is especially lightweight – in fact, it is the lightest exoskeleton of its kind, weighing in at less than two kilograms,” said Lotte Koenig, Sales & Business Development Manager Australia for Ottobock Industrials. “As the design is based on natural human movements, users can walk, sit and also pick up objects with it. The suit can be worn comfortably for an entire shift, or parts of it, while providing noticeable relief for shoulders and arms during overhead work. “It also comes in an adjustable one-size-fits-all model, so there’s no need to buy different sizes. This means each company has full flexibility when the exoskeleton is needed in different departments.” Based in Duderstadt, south-west of Berlin, Ottobock has been responsible for several innovations in prosthetics, including the C-Leg, a computerised knee that adaptively varies its passive resistance to suit the patient’s different walking gaits, and the Michelangelo Hand, a fully articulated robotic hand prosthesis. Ottobock has also been a partner to the Paralympic Games since 1988. The Ottobock Paexo product range also includes neck and wrist supports. The company will be launching a much-anticipated back support exoskeleton in 2020. www.paexo.com
Shooting a scene like this can easily take eight minutes. The left arm has to support up to eight kilograms and the right arm has to pull up to three kilograms the entire time; unsurprisingly the assistant had complained of shoulder strain. The assistant wore the device with great success, reporting that it was quick and simple to put on and take off, the freedom of movement was virtually unrestricted, and there was no strain.
The impact of musculoskeletal disorders on productivity In Australia musculoskeletal disorders are a common cause for inability to work and are a significant cost for companies and healthcare systems. Safe Work Australia reports 60% of all serious claims between 2009-2010 and 2013-2014 were related to musculoskeletal disorders (MSDs) affecting areas such as the joints, vertebrae, muscles and tendons. Some 76% of injuries relate to MSDs.
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Reimagining workplace safety, during and after COVID-19 Organisations across the country have had to stop, re-evaluate and realign their work processes and practices in light of the global pandemic we have come to know as Coronavirus or COVID-19. This pandemic may continue to have significant implications on the manufacturing and supply chain markets globally for years to come. Mary Kikas discusses some key safety considerations for organisations as part of the recovery process. Over the years, I have worked for some manufacturing heavyweights, such as Robert Bosch Australia, the Ford Motor Company of Australia, BASF and OI, to name a few. I have steadily watched Australia’s manufacturing capability slowly leave our shores as we have restructured operations through outsourcing and offshoring of activities. This has occurred despite exemplary, locally driven productivity and quality outcomes. COVID-19 has no doubt impacted the sector further, resulting in unprecedented consequences for manufacturers and supply chains. Risk mitigation strategies for the manufacturing and supply chain sector require integration between existing safety practices combined with new approaches. Collaboration with designers, technology companies and our industry bodies will be paramount, to increase sustainability and resilience in the current market. From an occupational or work health and safety (OHS/WHS) perspective there are far-reaching implications around how we reimagine safe systems of work. We need to carefully review how work is undertaken and how we will communicate with our workers, suppliers, customers and visitors going forward. With the gradual lifting of COVID-19 restrictions, consideration must be given to business-as-usual activities and what this might look like: Will social distancing, daily cleaning regimes and so on be the norm within workplaces? How will this affect operations, productivity, customer service and profit? How will organisations ensure effective monitoring of these practices in their workplace? Furthermore, do we need to consider and explore technological solutions such as touchless human-machine interfaces for sign-in to our workplaces and for machine operations as a new industrial revolution takes hold of our sense of the normative? In recent years, organisations have spent an enormous amount of time and resources exploring online software and smartphone app solutions to manage entry and exit to work locations (in terms of security), effective emergency preparedness and contractor management systems. As part of this process, workplace screening protocols (for COVID-19) must be considered before we allow any person to enter our workplace. This must apply not only to the existing workforce but also to all other persons who access the workplace. What can this look like and will our business-as-usual activities include temperature checks, self-reporting and signed declarations of no potential for exposure to the virus?
OHS considerations for the near future For the foreseeable future, consideration to safe systems of work must extend to effective behaviours such as social distancing and good hygiene practices (i.e. hand and respiratory), including monitoring these practices through supervision. Monitoring will be key to ensure appropriate separation and social distancing measures. This must be done in accordance with the best available advice and evidence provided by the Federal Government, in consultation with our country’s leading medical experts. Organisations will need to consider a review and audit of their sites and processes to inform possible redesign of their traffic management systems to ensure that they eliminate or limit personto-person contact. Similarly, a review should be undertaken of administrative offices – which are typically open plan – and production lines, where operators, technical tradespersons and/or engineers must work alongside each other. Consideration must be given to changing
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layouts and/or a level of redesign of the floorplan and other touch points where employees and contractors must interact. This can include a review of the location and proximity of fixed plant and equipment with consideration to safe access for maintenance/ service personnel. Common areas – such as employee facilities and amenities that provided for worker health, safety, welfare and personal hygiene needs – must encompass appropriate social distancing measures and prevention of cross contamination through cleaning schedules and practices. Organisations must investigate the suitability of existing cleaning and infection control practices through the use and application of suitable disinfectants and other products designed to kill and eliminate any residual bacterial or viral contamination. Beyond the operational implications to the organisation, a risk management plan specifically targeted to address COVID-19 risks and risk treatments must be developed, implemented, monitored and regularly reviewed. Furthermore, business continuity and disaster recovery planning must be front of mind and warrant a review of existing protocols and strategies, in light of the ramifications on the workforce and also the broader business as a result of the current pandemic. It is now more important than ever for organisations to engage suitably qualified and experienced OHS/WHS professionals to inform processes and ensure that effective risk management strategies are implemented. Ultimately, this will assist organisations to meet their legal duties, in accordance with OHS/WHS legislation, and keep their workers safe at work. Mary Kikas is a Senior OHS and Ergonomics Consultant at Action OHS Consulting. www.actionohs.com.au
SAFETY
Smart fever monitoring system with infrared thermal imager The COVID-19 pandemic and the action taken to minimise its spread have greatly affected the way we function as a society. Infrared temperature sensors can be used to detect people with symptoms such as fever, and isolate them to contain the spread of the virus. This is an important system to be implemented in essential operations that cannot be completely shut down such as hospitals, banks, and a diverse array of manufacturing sites. Early detection of symptoms such as fever is essential so that the suspects can be isolated and prevented from entering the site. This is to avoid potentially spreading the virus to employees, who will then be required to self-isolate themselves for at least two weeks. During this period, the factory may also have to shut down the operation and suffer losses in an already-difficult economic situation. The infrared thermal imager generally falls into two different models: a handheld laser thermometer, or a thermal imaging camera. The handheld laser thermometer is perhaps the more popular out of the two, due to its versatility and ease of use. The operator only needs to point the laser to scan the temperature of the person. The thermometer will take the average temperature reading of the spot size and display the value on the device. On the other hand, the thermal imaging camera is capable of scanning the entire area in the camera’s point of view and look for any hot spots. The thermal imager will display a thermal image of the scanned area and colour-code it based on the temperature reading. The applications of the thermal imaging camera as a fevermonitoring tool can be realised without close contact. This offers certain advantages as fewer operators are needed to scan each person passing certain checkpoints, risking infection when they are in close contact with someone displaying symptoms.
How to use a thermal imaging camera for fevermonitoring The thermal imaging camera can be installed in the entrance of factorie buildings or any manufacturing site to scan the body temperature of anyone entering the premises, including both staff and visitors. The camera can be used together with an alarm system. When the sensor detects a temperature above a certain threshold – for example 38 degrees Celsius and above – it will alert the operator and engineers. This allows them to discreetly approach the person and isolate him or her from their companions. The accuracy of the infrared temperature measurement depends highly on the emissivity of the target object, which ranges in value from 0 to 1. Emissivity is defined as an object’s ability to emit infra-red energy. A material with an emissivity value of 1 would not transmit
any infrared energy. The emissivity value should be adjusted to that recommended for measuring human body temperature. From the literature, the emissivity of the human body, skin or organic materials can be estimated at between 0.95 and 0.98. The placement of the infrared camera is also important to allow a full view of the crowd streaming in and out of the site. In some sites, multiple thermal imaging cameras may be required. The main consideration is to ensure that there are no hot objects present in the view of the camera, such as operating machinery with temperatures that exceed that of human body, or appliances in the kitchen area. These hot objects will cause the alarm system to be non-functional as it will not be able to inform the operators when someone with fever is captured by the camera.
The MicroEpsilon TIM40 compact thermal imaging camera Bestech Australia supplies the Micro-Epsilon range of infrared thermal imaging cameras for test, measurement and monitoring applications in the industry. Recently, Micro-Epsilon’s TIM40 thermal imaging camera has been used for fever-monitoring applications for passengers in airports. A key feature of this compact thermal imaging camera is its motorised focus function to remotely control the camera focus on specific individual. It also has a good pixel resolution of 382 x 288 pixels, with a frame rate of 80Hz for capturing transient change in fast thermal process. The TIM40 thermal imaging camera also has temperature resolution of 0.1 degrees Celsius, suitable to detect even the smallest change in temperature. In addition to integration with an alarm function, this thermal imaging camera can also be programmed to provide a snapshot of the infrared images whenever the alarm is triggered. These functions can be written into the software through the integrated software development kit that is supplied with the sensor. The temperature monitoring can be done in the control room, away from the crowd, to minimise the risk of exposure. Generally, all types of thermal imaging camera are suitable to be used for this monitoring applications. The TIM40 has the advantage that it has a compact design and is more cost-effective when compared with the other thermal imagers. www.bestech.com.au
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Using human capital management software to reduce WHS compliance risk Compliance with workplace health & safety regulations is vital for manufacturing businesses, but the administrative obligations require significant time and effort. Technological solutions such as automated software systems can help to lighten the burden. By Gideon Joseph. The need for stringent workplace health & safety (WHS) compliance in the manufacturing sector is well justified. Manufacturing has one of the highest incidence of Australian workplace-related accidents, injuries and fatalities, accounting for 9% of all worker fatalities in 2018. Ensuring a manufacturing business is fully compliant with WHS regulations is therefore a hugely important commitment. Noncompliance carries huge financial and personal risk for employers and employees respectively. But many manufacturing employers find themselves burdened with the heavy administration of WHS compliance, and struggle to efficiently manage it. The current public health crisis has made occupational health & safety (OHS) compliance even more important. Not only must manufacturers deal with minimising risk associated with the day-today operations of a manufacturing business; they must also take up proactive risk management strategies to minimise the potential for COVID-19 transmission in their workplace. After all, manufacturers can’t work from home. When it comes to dealing with the workload of WHS compliance, manufacturing businesses should ask themselves whether they could be working smarter, not harder, to manage this. The answer is yes they could – by using software designed to drive efficiencies in managing WHS compliance. A report by the Advanced Manufacturing Growth Centre (AMGC) published in April found that the manufacturers in Australia who are globally competitive are those who make smarter use of technology.
safety co-ordinators to have these renewed. Better still, not only will the system flag up when an employee’s licence will expire, it will also enforce compliance by prohibiting the scheduler from rostering a person to a shift where use of that piece of equipment is required. Some manufacturers who have implemented Kronos actually integrate the application into the machinery itself, to track time spent on pieces of equipment. This passes information to the central system, streamlining the data gathering rather than relying on a clock-on/ clock-off system. It’s important to note that the system can not only be used to prevent unsafe work from happening, but also as a training tool that can help with the onboarding process. Employees can use the software to access training materials, as well as to educate themselves on the correct health and safety practices. The system can be configured to an individual company’s needs, with the availability to add any training modules.
By using software like Kronos to manage WHS risk, manufacturing companies can manage, record, and report on all aspects of an organisation’s health & safety obligations and requirements, using one system that accounts for all the nuances and complexities of workplace safety.
Using automated systems such as Kronos will free up time in many ways. Chiefly, it negates the need for manual paperwork by allowing for automation and centralised data collection, while also allowing businesses to identify emerging safety hazards before they become critical.
But the ways in which manufacturing companies are using software to manage WHS compliance aren’t just limited to reporting and recording. With Kronos, once burdensome tasks such as rostering become automated, with rosters generated in such a way that mitigates fatigue risk by ensuring employees aren’t working too many consecutive shifts in a row.
This proactive and efficient approach to managing WHS in a manufacturing context allows manufacturers to be more productive, while also reducing labour costs and the potential for human error. This freeing up of time and resources allows manufacturing employers to address other threats posed to the industry, such as low tariffs and cost competitors overseas.
This feature also helps to prevent employees developing repetitive strain injuries, since the system can recognise when an employee is at risk of working consecutive shifts involving certain manual tasks. Concerns about employees being over-exposed to noise can also be addressed through Kronos’ automated rostering; the system will alert the user when employees are frequently working shifts with heavy noise exposure.
Gideon Joseph is the Manufacturing, Services and Distribution Practice Manager for Kronos – Australia, New Zealand & South-East Asia www.kronos.com.au
One of the biggest hazards in manufacturing WHS is operating highrisk machinery. Employers must stay on top of which employees hold the correct license for operating certain pieces of machinery – but keeping up to date with this can be challenging and resourceintensive. Using software that tracks this information allows safety coordinators to stay updated on which employees are qualified and adequately trained to complete certain tasks or use certain pieces of equipment, and notifies the software user immediately when they are not. The technology is also capable of flagging up when an employee’s licence to use a piece of equipment is due to expire, prompting
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Real Business Real People Real Members Apart from any financial benefit what other reason is there to be a member of AMTIL? The world is getting smaller and globalisation provides an abundance of opportunities and threats. AMTIL provides us with tools and support to stay connected and collaborate with businesses who are driven to harness the opportunities and counteract the threats together, and retain a strong manufacturing footprint here in Australia. Erika Hughes, Integra Systems
Since 1999, AMTIL has been connecting business, informing of opportunities and growing the manufacturing community. To be become an AMTIL member contact our Corporate Services Manager, Greg Chalker on 03 9800 3666 or email gchalker@amtil.com.au
amtil.com.au 1311AMTIL/EH
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Coregas completes major fabrication industry installation Coregas has completed the installation of one of the largest industrial reticulated gas pipeline systems in the company’s history. Coregas installed and commissioned four 700m reticulated pipelines for argon, oxygen, liquefied petroleum gas (LPG) and air supply, and more than 220 regulated outlets on behalf of structural steel fabricators Genis Steel in Adelaide. With over 40 years’ industry experience, Genis Steel manages all aspects of steel fabrication from on-site measuring, in-house drafting, fabrication, through to full site installation. With extensive in-house capabilities and state-of-the-art facilities in both Melbourne and Adelaide, Genis Steel is able to provide a range of steel construction components for domestic dwellings, architecturally designed projects and multi-level apartments right through to industrial, commercial and government projects. Genis Steel recently expanded into South Australia, opening a state-of-the-art fabrication facility at the Lionsgate Business Park in Elizabeth South. This large facility, which was once home to Holden’s press shops, boasts over 15m clear heights and a 100-tonne lifting capacity. Combined with Genis Steel’s technical capabilities, workmanship and reputation for quality fabrication, the scale of the facility will enable the company to handle an almost unlimited scope of work. Coregas worked closely with Genis Steel to understand its application requirements and design a cost-effective, efficient bespoke reticulation system that features quality gas control equipment supplied by Harris Products Group. According to Vince Manuele, Managing Director at Genis Steel – South Australia, the supply of gas is essential to Genis Steel’s operations.
Inside the Genis Steel Workshop in Adelaide.
“If we run out of gas, certain areas of production stop. So, our gas supply needs to be efficient, dependable and stress-free. For this to happen, our gas supplier must be very proactive, easy to deal with, and always prepared to fix my issues — Coregas is,” said Manuele. “Coregas and Nathan Lindsay (Sales Manager – Regional South Australia at Coregas) go out of their way. Nathan understands the concept of good, strong customer service, and he drives this continuously. Nathan understands that I need him to make sure our gas supply is seamless.” Coregas manufactures and distributes compressed gases and cryogenic liquids to almost all industries, ranging from heavy industry and manufacturing, to healthcare and specialty users such as laboratories. The reticulated gas pipeline system installed at Genis Steel encompasses Coregas smart metering technology that will ensure Genis Steel is able to access critical level alerts and utilise automatic replenishment for optimum stock levels. “The system has been set up so that it advises us automatically when banks of gas bottles are nearing empty,” said Manuele. “This removes some of the stress – there is no need to constantly monitor the vessels and stay on top of procurement. We receive an email alert, check the gauges, and send off an order via email. It eradicates the productivity problems associated with running out of gas. It makes the process simple.” According to Lindsay, the comprehensive gas system will provide Genis Steel with the capacity and performance required to help maintain their position as leaders in Australia’s heavy engineering and steel fabrication industry. “Without a doubt, the Genis Steel reticulated gas system is one of the most comprehensive and detailed installations in which I have ever been involved,” said Lindsay. “Genis Steel was very clear on their expectations, and how the system should perform. I took great pleasure in working closely with Vince Manuele and the entire Genis Steel team to ensure we not only delivered – but exceeded – all expectations.”
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A welder working in the Genis Steel Workshop in Adelaide.
Coregas understands that quality and productivity are crucial in maintaining a competitive edge in the Australian fabricating and welding industry. Coregas shielding and cutting gases are formulated – and continuously updated – to help fabricators maintain this edge. www.coregas.com.au www.genissteel.com.au
WELDING
How the right welding table improves accuracy and precision Welding is essential in so many industries, and the right equipment is critical when complex designs put a premium on accurate work with little tolerance for error. The Demmeler 3D workbench and welding table distributed by Leussink is a versatile jig and fixtures system for all types of welding and fabrication work. Projects such as steel construction, sheet metal processing, robot technology, assembly and measuring equipment, laser welding, laser cutting, prototype construction, body construction, and many others can be set up easily and precisely. The Demmeler system can meet all horizontal and vertical requirements and is complemented by a full range of components to fixture virtually any part. Due to its modular nature, engineering changes are easily handled, and duplicate fixtures can be ready in as little as 20 minutes. By using modular fixturing, users can recover valuable production space once used for storage of old dedicated fixtures and jigs. Another factor to consider with welding table systems is hardness, because welding obviously creates a lot of heat. Demmeler’s Demont range uses a high-strength base material for the worktop in combination with a special optimised low heat hardening process that provides the best surface characteristics for any type of project. Demmeler tables are constructed using a low heat hardening process, which helps stop distortion caused by high heat. Accessories include a range of angles that allow users to expand the working area of the Demmeler table, both up and out, making it easier to set up jigs or weld larger items. Four new models were recently added to the range. The new aluminium/titanium Demmeler angles weigh only a third of similar angles made from steel, so a user is lifting only 12kg instead of 35kg. As well as extending the working surface of the Demmeler table, the angles also act as a stop and allow the user to secure workpieces at 90 degrees. The 50mm borehole grid makes the angles easy to handle and move into place for accurate work, and the kidneyshaped 90-degree system groove makes continuous angle adjustment possible. All the design elements that are incorporated into the Demmeler table system make them very easy and quick to clamp and unclamp. For example, using the Demmeler power screwdriver with quick-change coupling, the process is 10 times faster than conventional methods. www.leussink.com.au
Empower Workshop Floor Data Collection & Scheduling Software
For progressive engineers to manage your core business, your labour
Touch Screens on the Workshop Floor – Tracking: Jobs, Tasks and Workshop Staff Live
50 inch TV Monitors on Office Walls and Workshop Floor Walls – Report: Jobs, Tasks, Staff, Times, Job Status, Due By Dates, and more Live
Scheduling is Updated Automatically and Live at Job Status Change
Essential Tool for Production Management to Drive Production
• Software developed for engineers producing custom one off products or projects, 6 to 150+ workshop staff • Empower is Add On Software and an APP • Empower is Cloud-based and Web-based • Pricing is Low Cost Subscription. Eg 10 work shop staff is $108 per week for 3 years dropping to $44 per week after 3 years • Supplying Australian engineers for 13 years • Available to you on request: information pack and free trial software • Engineering Client Short Videos on youtube.com. In Youtube type in and search: Empower MARs Transport, Empower Peppertree, Empower Express Sheetmetal, Empower Delta Stock Crates • 95% of engineers using tablets on the workshop floor and Empower Software achieve a 20% to 40%+ reduction in time on jobs – therefore a 20% to 40%+ reduction in labour costs on jobs. • An Engineer with 10 work shop staff is projected to increase production by 80 hours per week, therefore increase revenue by $6,000 per week and (80 hours by $75 per hour overhead cost), therefore increase revenue by $312,000 per year. This $312,000 is largely additional profit per year because overhead costs have been incured in existing production.
Sean O’Sullivan
B Com (Hons) Otago University
Founding Director, Empower Software sean@manufacturingandengineering.co.nz +64 27 2284211 AMT Magazine 19/05/2020
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Changes to the Corporations Act : Protecting the economy To protect the economy from the ongoing pandemic, the Government announced changes to the Corporations Act. Garth O’Connor-Price explains what has changed. On 25 March, the Government effected changes to the Corporations Act to protect the economy from the stress of the ongoing pandemic. Understanding these changes and what hasn’t changed can help you protect against: • Being held personally liable for Company debts incurred, and • Losses from trading with insolvent customers and on Director / Shareholder Loans.
What has changed? 1. Relief from insolvent trading Relief has been provided to Directors who act in good faith from insolvent trading claims for the period of six months from 25 March 2020. Insolvent trading is the act of incurring debt whilst the company is insolvent, and this debt remains outstanding at the point of liquidation. A liquidator can bring an action against a Director personally for these debts. An example of how the relief will work in practice is: We have Jim who runs a chain-link fencing manufacturing business with expenses in the form of rent, wages and wire. Jim’s company becomes insolvent on 1 April 2020; however, he keeps trading until 31 December 2020 when his business cannot trade any longer and a liquidator is appointed. As at the appointment of a liquidator, 6 months of rent is outstanding, no outstanding wages and the wire supplier is owed money for two orders of wire, one on 1 July and one on 1 November. A Liquidator could pursue Jim for the wire ordered on 1 November but not the order placed on 1 July as this will qualify for the relief. There is no claim relating to wages and no claim in relation to the outstanding rent because it relates to an event (being the signing the lease) that happened prior to the company becoming insolvent. If it is deemed that the company was insolvent prior to 25 March, debts incurred before this date could also be included in an insolvent trading claim. 2. Enforcing debts The threshold to enforce a debt via a statutory demand against a corporation has increased from $2,000 to $20,000; whilst serving a bankruptcy notice on an individual requires a debt of $20,000 or greater, up from $5,000.The debtor now also has six months to respond to the demand or notice, whereas previously it had 21 days to do so.
What hasn’t changed? 1. Director’s Duties There has been no amendment to the statutory duties imposed on Directors by the government in response to the pandemic. Duties such as acting in good faith remain and if there is a suspicion of insolvency, the Director’s priority switches from the shareholders to the creditors of the company. In this regard, you can protect against the risk of personal liability by applying principles of the Safe Harbour regime. This regime was brought in to protect directors against insolvent trading claims; however, it can equally apply to claims for breaches of directors’ duties. Practicing the Safe Harbour principles noted below will protect against a claim for a breach of director duties: • Scrutinising the financial position of the company • Applying the “better outcome for creditors” test to all action taken
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• Seeking independent expert advice; and • Documenting the decision-making process. Insolvent trading laws and director duties are drafted in a way that doesn’t prohibit directors from taking risks, as long as they can point to documentation and mount the argument that at the time the action was taken; it was reasonably likely to result in a better outcome for creditors than not taking the action and running the risk of a death by a thousand cuts or the alternative of placing the company into liquidation immediately. 2. Risk of losses The risk of losses from trading with insolvent customers or loaning personal funds on an unsecured basis to a business remain, and if anything has increased in this time of uncertainty.Directors should protect their businesses and themselves from these risks by utilising the power of the Personal Property Security Register (‘PPSR’).The PPSR is a regime used to determine the priority to assets in the events of liquidation. There are two types of interests that can be registered: 1. An All Present and After Acquired Property (‘AllPAAP’) This type of registration covers all the assets of the company and the kind of interest held by a bank or financier (including a Director or Shareholder). An AllPAAP will grant the holder: a. Power to influence the destiny of the company (secured creditors are not automatically bound by an external administration unlike unsecured creditors). b. Priority over unsecured creditors (and in some cases employees) to funds realised from company assets. 2. Purchase Money Security Interest (‘PMSI’) A PMSI secures is a specific asset such as inventory (supplied on ROT terms) or equipment subject to a hire purchase agreement. If registered correctly it gives the holder super priority over all other creditors in respect of that asset; including the bank/financier and employees.Our advice would be if any customer comes to you seeking a variation of terms or requesting deferral of payment in the coming weeks; that a non-negotiable in these discussions is for their consent to register an interest against the assets supplied to the customer.
Summary The suspension of insolvent trading laws mean Directors shouldn’t make hasty or rash decisions about their businesses; however, the relief should only be utilised if there is a reasonable expectation of a viable business at the other side of this pandemic. If there is a reasonable expectation, the safe harbour principles can help you build that bridge to get to the other side. An increase in the requirements to enforce debts means that businesses should be more selective in who they trade with and remember that the PPSR is your friend when it comes to dealing with financially distressed customers and injecting personal funds into your business. Garth O’Connor-Price is Principal, Recovery & Insolvency, William Buck. William Buck is a leading firm of Chartered Accountants and advisors with offices across Australia and New Zealand. Ph: 03 9824 8555 E: garth.oconnor@williambuckvic.com.au www.williambuck.com.au
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Manufacturers and suppliers: Combat the risk of customer insolvency during COVID-19 The COVID-19 pandemic is a challenging time for many businesses and there is a heightened risk of insolvency for customers and defaults under terms and conditions of trade. Emma Simpson and Julia Cameron offer timely advice. • Many manufacturers and suppliers supply goods to customers on retention of title (ROT) terms • ROT security interests must be registered on the Personal Property Securities Register (PPSR) • If a registration is not made, and the customer enters insolvency or defaults, a supplier will have no claim to recover unpaid goods supplied on ROT terms • The COVID-19 pandemic brings a heightened risk of insolvency • Recent legislative changes give suppliers a longer window of opportunity for the registration of security interests in goods supplied on ROT terms
Goods supplied on ROT terms It is common for manufacturers and suppliers in many Australian industries to supply goods to their customers on ROT terms. This means that while the customer takes possession of the goods, the supplier retains legal ownership of the goods until they are paid in full. Since the introduction on the Personal Property Securities Act 2009 (Cth) (PPSA), a supplier can only enforce its rights to goods supplied on ROT terms if the supplier registers a security interest on the PPSR. If the customer enters insolvency or otherwise defaults and the supplier does not have a valid registration, the supplier will have no claim for the return of any unpaid goods. In the case of insolvency, all of the unpaid goods will become available to the administrator or liquidator to meet other secured creditors’ claims.
Timing for registrations There are two important timeframes under the PPSA and the Corporations Act 2001 (Cth) by which ROT security interest must be registered on the PPSR. First, security interests must be registered within 20 business days of the security agreement which governs the supply (for example, trading terms and conditions) coming into force. Where a security interest is registered outside that time frame, and an administrator or liquidator is appointed to the customer within six months of the actual date of registration, the security interest will vest in (become the property of) the customer. In these circumstances, the supplier will lose title to its unpaid goods. However, after six months, a security interest that is registered late will no longer vest and will be enforceable by the supplier, but it may lose priority to an earlier registered security interest in the same property. Second, suppliers who sell on ROT terms have the benefit of what is known as a purchase money security interest (PMSI) if an ROT security interest is registered: (a) within 15 business days of the customer obtaining possession of the goods; or (b) if the goods are inventory, before possession is given. The benefit of a PMSI security interest is that the supplier will receive a super priority right to recover the supplier’s goods in the circumstances of the customer’s insolvency, ahead of prior registered security interest holders who hold security in the same goods.
“The passing of the Coronavirus Response Act represents an excellent opportunity for suppliers and manufacturers to obtain better protection against potentially insolvent customers” One registration can cover multiple supplies to the one customer under the same trading terms. We recommend manufacturers and suppliers register as early as possible to cover the entire trading relationship with a customer.
Impact of the COVID-19 pandemic The COVID-19 pandemic is a challenging time for many businesses and there is a heightened risk of insolvency for customers and defaults under terms and conditions of trade. In response to the current environment, the federal parliament recently passed the Coronavirus Economic Response Package Omnibus Act 2020 (Cth) (Coronavirus Response Act), which includes a range of measures which include extending the time for responding to a creditor’s statutory demand (a common trigger for the insolvency of an entity) from 21 days to 6 months. Further details about the Coronavirus Response Act can be found here www.rigbycooke.com.au/suspension-of-insolvency-laws. It is not possible to overcome a late registration for the purposes of the PMSI super priority, but the effect of the Coronavirus Response Act for suppliers is that it may be less likely that their customer will enter into administration of liquidation within the next six months, meaning a security interests registered now may, if even if registered ‘out of time’, have a better chance of passing the six month vesting date and becoming enforceable by the supplier.
Recommendations Notwithstanding the introduction of the PPSR some years ago, we are finding that many secured parties, including manufacturers and suppliers who sell on ROT terms, still neglect to register their security interests on the PPSR. The passing of the Coronavirus Response Act represents an excellent opportunity for suppliers and manufacturers to obtain better protection against potentially insolvent customers. All manufacturers and suppliers should review their current trading terms and conditions to ensure that they retain title to unpaid goods (where intended) and that any security interests are properly registered on the PPSR. It is important that registrations are made properly. We recommend that AMTIL members speak to us to obtain advice about the strict PPSR registration requirements. We can assist for a fixed fee by either making the registrations for AMTIL members, or by providing registration training so that members can complete registrations “in house”. Emma Simpson is Senior Associate, Rigby Cooke Lawyers. Julia Cameron is Partner, Rigby Cooke Lawyers. www.rigbycooke.com.au
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How do you plan for something you can’t predict? Lessons from Coronavirus The Coronavirus pandemic will not be the last unforecasted event. Stuart Harman and Rod Hozack suggest preparation, learning from history and employing those strategies in order to react more quickly. As Coronavirus (COVID-19) spread rapidly across the globe, businesses and governments were scrambling to deal with the impact. The number of those in Australia with the virus has been comparatively low compared to other parts of the world, with reports of 6,825 cases and 95 deaths (at the time of writing). Nonetheless the impact on business has been significant. Tim Harcourt, from the University of New South Wales Business School, said. “All major economies have been hit almost at once by the impact of the coronavirus and it’s done damage to global supply chains in manufacturing and even more to people-based industries like education and tourism.” Tourism has been particularly badly affected as international and state borders were closed, cancelling out both international and domestic travel. And as lockdown now starts to ease, there is still uncertainty as to when borders will reopen. The near collapse of Virgin Australia is a stark example of the how the pandemic has impacted tourism. At the end of April, Virgin Australia was given a three-month period to try and sell the company to keep it flying. The slow-down of shipping from China impacting the supply chain into Australia has meant delays on consumer goods, not least tech products. Related to this was a surge in consumer panic buying in supermarkets with limited supply of toilet rolls in particular, and empty shelves were a common sight in Coles, Woolworths and Costco. The lockdown also meant that sporting events were widely affected with many cancelled, including the Australian Grand Prix, Super Rugby, and international one day cricket while others like the NRL were played in empty stadiums. At Christmas the world hadn't heard of Coronavirus and nearly five months later, it has become a pandemic that is pushing the global economy into recession. So, what lessons can businesses learn from this? There will be more ‘unforecasted’ major disruptive events. Coronavirus is not the first unforecasted event to have had a significant impact. The SARS outbreak in 2003 and the Japan Tsunami of 2011, and most recently, the Australian bushfires, all had a far-reaching impact that either nobody or, at least, very few saw coming. And neither will Coronavirus be the last such event, so we should all be prepared. Learn from history and put the time into understanding previous different case studies. Being prepared provides business advantage. Whilst it is not possible to forecast which events will occur, it is possible to prepare for them. In their book, Great By Choice, Jim Collins and Morten Hansen identified a core behaviour of "Productive Paranoia", employed by what they call “10x companies” (those companies that outperform their industry peers by a factor of 10). The authors describe the leaders in these companies as constantly asking "What If?" and developing plans to exploit or defend against possible outcomes. Their research indicated that 10x companies were no more or less lucky than their peers but were able to use their preparedness to react more quickly and take action to mitigate or exploit events.
You don't have to predict future events accurately to be prepared. Businesses across Australia should ask the questions to uncover the types of event that can seriously disrupt their company, such as: -
What if we lost our number one customer’s business?
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What if there was a pandemic locally or in a geography where our customers or suppliers are located?
- What if our major material availability dries up? - What if there is a technological breakthrough that makes our products less useful, e.g. Uber to the taxi industry - What if the industry becomes commoditised? Each of these specific events has happened somewhere, so the impact and lessons are well-documented and easy to find - allowing organisations to think about the implications and prepare. Creating a framework to focus on the future is valuable. While most organisations would recognise the value of ‘preparedness’, relatively few effectively take this approach. To prepare for, and take advantage of unexpected events, organisations can benefit from a process that: • Drives an external or outside-in view of the business • Pushes the planning horizon out past the short term • Makes the integration points between functional plans in the organisation clear, so that when unplanned events occur, the critical areas of focus for the business are understood. A recent discussion with a pharmaceutical products supplier was an example of the time and effort that can be wasted when integration points are not well understood. While the company’s sales and manufacturing operations worked on plans to increase production of a sanitising product to meet the extra demand caused by Coronavirus, nobody had spoken to procurement who could have told them that the pump mechanisms for the product, sourced from China, were currently in short supply. Executives need to constantly be asking ‘what if’ and driving preparedness. The issue for many executives is too much time and energy spent into the ‘here-and-now’; accurately predicting results for a month to a year, rather than looking out over the next five years. A business management process such as Integrated Business Planning (IBP) provides the framework and operating cadence for organisations to regularly take an outside-in view to identify areas in the business with the greatest uncertainty, and to run ‘what-if’ scenarios that enable contingency plans to be put in place. So, how well are you planning for the unknown? Stuart Harman and Rod Hozack are Partners at Oliver Wight Asia Pacific. Oliver Wight is a consultancy firm and pioneer of Sales and Operations Planning, the originator of the fundamentals behind supply chain planning and is the acknowledged leader for Integrated Business Planning (IBP). information@oliverwight.com www.oliverwightasiapacific.com
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Deferred GST and export loan facility – A welcome break for importers and exporters The Federal Government’s Deferred Goods And Services Tax (DGST) allows deferred payment of GST on all taxable imports into Australia. Cesar Lopez elaborates on this welcome initiative and explains how importers can take advantage of it to help their business soften the blow of the pandemic. Also explained here is the Government’s Export Capital Facility for businesses that are unable to secure finance due to the pandemic. GST is usually a subject left to our friends and fellow Corporate Partners over at William Buck Chartered Accountants to explore. However, just like the dreaded Coronavirus has been pushing our businesses into new territory, the Deferred GST Scheme being implemented by the Australian Government is forcing our humble logistics firm to delve headfirst into the wonderful world of GST to an extent never seen before. What fun! So, let’s get down to the nitty gritty - What is the Deferred Goods and Services Tax (DGST) Scheme and how can we, as importers, utilise this initiative to help our businesses soften the blow of the pandemic? As the Australian Government ATO website puts it, “As an importer, the deferred goods and services tax (DGST) scheme allows you to defer payment of GST on all taxable imports into Australia”. To break that down even further, the government is allowing all eligible Australian businesses that import cargo from overseas to pay the GST component of their shipments with the first Activity Statement lodgement after the shipment, instead of at the time of arrival of the goods in Australia. This facility is quite obviously a huge cash flow boost for importers, given that the duties payable are often substantive. The extra time will provide some much-needed breathing space for importers to collect these monies from their customers by way of product sales – transactions which in some cases may not have already occurred by the time the GST has ordinarily become due. It probably sounds a little too good to be true at this point, so you’re likely wondering, what’s the catch? There are some risks to be considered, in that BAS payments become much greater under this scheme, which could potentially be difficult for struggling businesses to overcome. Another factor to be considered is that if you currently report quarterly, GST lodgements must be changed to monthly under this scheme. There are some eligibility requirements to be met. To participate in the deferred GST scheme, you must: • Have an Australian business number (ABN). • Be registered for GST (you can register for GST and apply for an ABN on the one form if you don't already have an ABN). • Lodge your activity statements online and pay electronically. • Lodge your activity statements monthly (if you are currently lodging quarterly, this will be changed to monthly once the ATO receives and approves your application.
• Ensure the goods or excise-equivalent goods are for home consumption. • If you are a member of a GST group, ensure your nominated representative is registered for the DGST scheme. You may not be eligible if: • You are not up to date with your tax returns or payments – this includes members of GST groups, branches and joint ventures. • In the past three years, you or anyone relevant to the application, has been convicted or penalised by a court for specific offences. Make sure you talk to your Customs Broker. They should be well informed on the subject and will provide information on how they can accommodate your intention to participate in the scheme. Also of interest to Australian exporters, the Government announced in April this year a $500m Export Capital Facility for businesses that are unable to secure finance from commercial sources due to the COVID-19 situation. The package is being administered by Export Finance Australia and will cater to exporters with a minimum annual turnover of $250,000. The initiative has been developed to provide access for exporters to much-needed capital to develop their businesses. The facility may be used for: • Working capital support. • Capital investment. • International expansion. • e-commerce investment. The commitment shown by the Government to support Australia’s supply chains with such substantial and unprecedented schemes highlight the importance of keeping the industry healthy during the pandemic and beyond. We encourage members to consult with their logistics partners about Government support in the supply chain realm, and seek out all options available to help your business reach the other side of the pandemic in the best possible shape. At SternaGL, we combine our logistics experience and knowledge with exceptional human talent to provide you with a tailored solution for your cargo needs. From small parcels, to over-dimensional project cargo, and everything in between our dedicated team utilise their extensive skill and expertise to manage the journey of your freight from origin to destination - intact and on time. Cesar Lopez – Director – cesar@sternagl.com www.sternagl.com
“The government is allowing all eligible Australian businesses that import cargo from overseas to pay the GST component of their shipments with the first Activity Statement lodgement after the shipment, instead of at the time of arrival of the goods in Australia.” AMT JUN/JUL 2020
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Getting on with business as normal Like most people, I wish I would have bought shares in Zoom six months ago! On 1 January the share price was US$68 per share and at the time of writing this article the share price was sitting at US$178 per share. Wow. It just goes to show how much we have been forced to change our communication methods. I have to say, I would have used Zoom maybe half a dozen times prior to COVID-19. Nowadays it is common for me to use it half a dozen times each day. We have all 25 staff working from home so we tend to use Zoom more than Microsoft Teams for staff meetings as it works better for larger groups. We are also using Zoom for our virtual member get-togethers every couple of weeks. Given we cannot run physical networking events at present, we have gone online, delivering webinar sessions with speakers talking about relevant topics every second Thursday. Of course, we are trying to get on with business as normal as possible so meetings with members, government, contractors and other stakeholders continues and even one on one chats with staff is more often than not done via video rather than mobile phone. We are all getting quite proficient at using Zoom too. Virtual backgrounds, screen sharing and breakout rooms now common – even with the technology-deficient. One wonders what will happen once things return to normal and face to face contact returns. I suspect digital interaction will become a part of our mindset now when scheduling meetings. I look back now to the number of times last year where I flew interstate, maybe stayed overnight, to have two one-hour meetings with our members or stakeholders. At a thousand dollars a trip and so much lost time, why would we ever return to that position when we have all become so comfortable with clicking a link on our computer? This, of course, has serious ramifications for our economy, airlines, hospitality, travel industry, etc and they will have to modify the way they do business to succeed into the future. But for the time being, we will continue with digital transformation and keep Zooming along. How times have changed in such a short period. Best regards and stay safe.
Shane Infanti, CEO AMTIL
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AMTIL HEADING INSIDE
AMTIL Events go online With social distancing measures to counter COVID-19 bringing all public gatherings to a halt, AMTIL has been forced to postpone an extensive program of events it had planned for the coming months. But that hasn’t stopped AMTIL members getting together to share ideas and discuss key issues … online. On 29 April, AMTIL held the first of its Virtual Meeting series of webinars for its members. Run in collaboration with AMTIL corporate partner William Buck, ‘COVID-19 – Navigating Government Stimulus Packages’ was an opportunity to gain expert insight into each of the main stimulus measures put in place since the crisis began. Jon Larosa, Garth O’Connor-Price and Ian Cattanach from William Buck presented on topics including the JobKeeper package, accelerated depreciation changes, the instant asset write-off, and the Safe Harbour and Personal Properties Security Register. There was also an opportunity for questions at the end, with 48 AMTIL Members signing on via Zoom to participate in the webinar. The next event took place on 14 May, with Rigby Cooke, also an AMTIL corporate partner, co-hosting ‘Fair Work Act & COVID-19 – Keeping on top of your workplace responsibilities’. In this virtual meeting, Rob Jackson, Victoria Comino and Tamara Cardan from Rigby Cooke outlined what employers’ key responsibilities relating to the Fair Work Act are in the current, pandemic-dominated environment. Attendance was again strong, with a Q&A session taking place once the presentations had concluded. Further Virtual Meeting events are planned for the coming months, with AMTIL aiming to make them a fixture for Thursday afternoons every second week. Upcoming webinars will look at a wide array of subjects including: ways in which manufacturers can join efforts to combat COVID-19; leadership in times of crisis; and what a postCOVID-19 workplace might look like. Work is also underway to explore other ways that AMTIL can help its members connect while social distancing precautions persist.
“We’d held a number of more informal online meetings in the first couple of weeks of the lockdown, and they’d generated really good feedback,” says Kim Banks, AMTIL Events Manager. “Obviously we’re looking forward to the time when AMTIL and our members can get together face to face again. But this is proving to be a really good way to engage people at a time like this. Keep an eye on the Events page of the AMTIL website for details of what’s coming up next.” For more information on the Virtual Meeting or on AMTIL events in general, please call 03 9800 3666, or email Events Manager Kim Banks on kbanks@amtil.com.au. www.amtil.com.au/events 1382AMTIL
AMTIL gratefully acknowledges the support of its Corporate Partners. 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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New members AMTIL would like to welcome the following companies who have signed up as new members of our association.
BREMAR AUTOMOTION AUSTRALIA P/L L1, 13 Malibu Cct Carrum Downs VIC 3201 www.bremarauto.com
HYGRADE LASER PROFILING 32 Harley Crescent Condell Park NSW 2200 www.hygradelaser.com.au
SHISHAM STANLEY GROUP 1 Bennet Street Dandenong VIC 3175 www.shisham.com.au
CHARLWOOD DESIGN PTY LTD 50 Glasshouse Road Collingwood VIC 3142 www.charlwood.com.au
NEW FORGE ENGINEERING Unit 3, 30 Juna Drive Malaga WA 6090 www.newforge.com.au
TORQUE CONVERTER TECHNOLOGIES 11 Yiannis Court Springvale VIC 3171 www.acceleratorhighstall.com.au
FURST ELECTRICAL SERVICES PTY LTD 11 Macquarie Place Boronia VIC 3155 www.furstelectrical.com.au
SCAN-XPRESS PTY LTD 43 James Street Northcote VIC 3070 www.scan-xpress.com.au
Contact AMTIL on 03 9800 3666 to learn how your business can be part of Australia's leading Advanced Manufacturing association. www.amtil.com.au
Getting set for Austech 2021 While Australian manufacturing continues to work through uniquely challenging times, AMTIL is moving forward with preparations for next year’s Austech exhibition. place later than it has in the past. AMTIL is monitoring the situation constantly, and details of the floor plan and other elements of Austech 2021 will be released as and when it becomes appropriate.
Australia’s premier advanced manufacturing technology expo will take place from 1114 May 2021 in Melbourne. The team at AMTIL is already working behind the scenes to prepare for next year’s show, ensuring that it will offer all of the features that you would expect from Austech, and developing a range of new initiatives aimed at delivering an even better experience for all participants. Austech 2021 will once again provide a comprehensive showcase of the latest innovations across every category of advanced manufacturing technology. The Additive Manufacturing Pavilion will again be spotlighting the latest advances in 3D printing, while the Air Technology Pavilion will be exhibiting a range of cutting-edge compressor systems and associated technologies. The Digitalisation Pavilion will again reveal how developments in digital technology are ushering in a new era of smart, connected manufacturing. Finally, the Manufacturers Pavilion will once
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again return to showcase the capabilities of Australia’s precision engineering and advanced manufacturing industry. Amid a rapidly changing situation around the COVID-19 crisis, AMTIL is continually reviewing its floor space sales timeline to ensure all AMTIL members and exhibitors are best placed to consider their participation. This may result in the ballot to allocate the first Austech stands taking
“Obviously COVID-19 has hit the economy hard, and it’s impossible to say what the situation will be this time next year,” said Kim Banks, AMTIL Events Manager. “But we’re optimistic that Australian manufacturing will have a big part to play in the recovery, and we think there’ll be a lot going on in the industry in 12 months’ time. So we’re going to be working hard to make sure Austech provides the best possible showcase for that.” Further information about booking exhibition space at Austech 2021 will be issued over the coming weeks and months. For any enquiries in the meantime, please call 03 9800 3666, or email Events Manager Kim Banks on kbanks@amtil.com.au. www.amtil.com.au/austech
Hotspots is proudly owned and managed by AMTIL
Press our buttons and we’ll be there to help you •
You need a specific component made, but don’t have the capabilities in house.
•
Your company has landed a major project, but your workshop or your workforce just aren’t big enough to handle the volume required.
•
Your business is diversifying into an area where the expertise available within the company is not sufficient.
HotSpots is a service designed to connect AMTIL members with opportunities to help their businesses grow. That piece of work that you need done might be just the sort of opportunity they’re looking for. And by featuring that opportunity as a HotSpot, you gain access to a wealth of Australian manufacturing capability and expertise.
Our regular AMTIL HotSpots email goes out to over 1,000 people every month, making HotSpots an incredibly powerful way to reach large numbers of key decision-makers from across the manufacturing sector. Provided your opportunity meets our criteria for listing, inclusion in AMTIL HotSpots is free. If you have something you feel will meet our criteria, please forward it to AMTIL for assessment by emailing info@amtil.com.au with the subject line HOTSPOT. www.amtil.com.au/Membership/Hotspots
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INDUSTRY CALENDAR Due to the ongoing coronavirus pandemic, many industry events world-wide have been postponed, rescheduled or cancelled, while both domestic and international travel has been severely disrupted. Readers are advised to check direct with all event organisers for the latest information. For up-to-date advice on coronavirus, visit: www.health.gov.au/healthtopics/novel-coronavirus-2019-ncov INTERNATIONAL INNOPROM METALWORKING Russia, Ekaterinburg 7-10 July 2020 www.metalworking-expo.com/en
THE ADVANCED MATERIALS SHOW UK, Coventry 8-9 July 2020 www.advancedmaterialsshow.com
METAL & HARDWARE CEBU Philippines, Cebu, 9-11 July 2020 www.globallinkmp.com
INTERMOLD/DIE & MOLD NAGOYA Japan, Nagoya 15-18 July 2020 www.intermold.jp/english
METAL MECHANICS, POWER AND AUTOMATION Brazil. Serra 4-6 August 2020 www.mecshow.com.br/en
SPACE TECH EXPO USA USA, Long Beach 10-12 August 2020 www.spacetechexpo.com
VIETNAM MANUFACTURING EXPO Vietnam, Hanoi 12-14 August 2020 www.vme-expo.com/en-gb.html
CIMES China, Beijing 17-21 August 2020 www.cimes.net.cn/en
METAL + METALLURGY CHINA China, Shanghai 18-20 August 2020 www.mm-china.com
ROSMOULD Russia, Moscow 25-27 August 2020 www.rosmould.com
TECHNI-SHOW Netherlands, Utrecht 1-4 September 2020 www.technishow.nl
IMTDUO Taipei, Taiwan 9-12 September 2020 www.imtduo.com.tw
IMTS USA, Chicago 14-19 September 2020 www.imts.com
BIOMEDEVICE USA, Boston 16 -17 September 2020 Medtech exhibition www.design-manufacturing-new-england. designnews.com
INTERNATIONAL TECHNICAL FAIR Serbia, Belgrade 22-25 September 2020 www.sajamtehnike.rs/en
STOM-BLECH & CUTTING Poland, Kielce 22-24 September 2020 www.targikielce.pl/pl/stom-blech.htm
INTERMACH & MTA Thailand, Bangkok 23-26 September 2020 www.intermachshow.com/2020/en
ADVANCED MANUFACTURING UK, Birmingham 28-30 September 2020 www.advancedmanufacturingshow.co.uk
METAL SHOW & TIB Bucharest, Romania 29 September - 2 October 2020 www.metalshow-tib.ro
MANUFACTURING SURABAYA Indonesia, Surabaya 30 September – 03 October 2020 www.manufacturingsurabaya.com
SIMTOS South Korea, Goyang 5-9 October 2020
ITM INDUSTRY EUROPE Poland, Poznan 3-6 November 2020 www.itm-europe.pl
MTA VIETNAM Vietnam Ho Chi Minh City 4-7 November 2020 www.mtavietnam.com/en-us
AMTEX India, New Delhi 4-7 November 2020 www.amtex-expo.com
SIAMS Switzerland, Moutier 10-13 November 2020 Microtechnology exhibition www.siams.ch/the-trade/presentation
GRINDTEC Germany, Augsburg 10-13 November 2020 www.grindtec.de/en
CHENGDU INTL INDUSTRY FAIR China, Chengdu 18-20 November 2020 www.cdiif.com
EUROSURFAS Spain, Barcelona 1-4 December 2020 www.eurosurfas.com
AUTOMATICA Munich, Germany 8-11 December 2020 www.automatica-munich.com/en
www.simtos.org/eng
PLASTPOL Poland, Kielce 6-9 October 2020 Plastics Processing exhibition www.targikielce.pl/pl/plastpol
EMEX New Zealand 12-14 October 2020 www.emex.co.nz
INDUSTRY DAYS Hungary, Budapest 19-22 October 2020 www.iparnapjai.hu/en
EUROBLECH 2020 Germany, Hanover 27-30 October 2020 www.euroblech.com
MECSPE Italy, Parma 29-31 October 2020 www.mecspe.com/en
2021 MACH UK, Birmingham 25-28 January 2021 www.machexhibition.com
INDUSTRIE PARIS France, Paris 16-19 March 2021 www.industrie-expo.com/en
AI EXPO Japan, Tokyo 7-9 April 2021 www.ai-expo.jp/en-gb.html
HANNOVER MESSE Germany, Hannover 12-16 April 2021 www.hannovermesse.de/en
INNOTRANS 2020 Germany, Berlin 27-30 April 2021 Intl. trade fair for transport technology. www.innotrans.com
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INDUSTRY CALENDAR HEADING LOCAL PREFABAUS MELBOURNE, DEAKIN EDGE, FEDERATION SQUARE. 14-16 SEPTEMBER 2020 Leading materials, technologies and prefab manufacturing processes. Education, Healthcare, Services, Technology, Research, Procurement and Project Management. www.prefabaus.org.au/conference-2020
CEMAT MELBOURNE MCEC 22-24 SEPTEMBER 2020 Materials handling, intralogistics and supply chain management www.cemat.com.au
QLD MINING EXHIBITION QLD, MACKAY 22-24 SEPTEMBER 2020 Over 250 suppliers, seminar series addressing current technology needs and the global and domestic outlook. www.queenslandminingexpo.com.au
WA MINING CONFERENCE & EXHIBITION PERTH CONVENTION & EXHIBITION CENTRE 14-15 OCTOBER 2020 “Accelerating WA’s Mining Future to 2030”. Operational strategy through to execution and address both the strategic and technical approaches to improve productivity, lower costs and optimise the end to end process. www.waminingexpo.com.au
VICTORIAN TRANSPORT INFRASTRUCTURE CONFERENCE 2020 MELBOURNE, MCEC 19-20 OCTOBER 2020 Discussing the prioritisation, planning and delivery of critical transport infrastructure across the state. Topics covered - Transport, Ports, Roads, Railways & Airports.
Advertiser Index
ALL-ENERGY AUSTRALIA MELBOURNE, MCEC 21-22 OCTOBER 2020
Adfoam 61 Applied Machinery
25
Austin Engineering
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1
Bilby 3D
83
DESIGNBUILD MELBOURNE, MCEC 27-29 OCTOBER 2020 Trends and strategies shaping the architecture, building, construction and design sector.
BJC Machine Tools
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Euroblech 39
ADVANCED MANUFACTURING EXPO (AMX) SYDNEY SHOWGROUND 18-20 NOVEMBER 2020 Latest high-tech manufacturing products and advanced processes to upgrade production techniques. Includes expert speakers sharing insights and case studies. www.advancedmanufacturingexpo.com.au
AUSTRALASIAN WASTE & RECYCLING EXPO ICC SYDNEY 25-26 NOVEMBER 2020 Innovative products and sustainable solutions to collect, process and recycle waste more smartly. Future critical areas include machinery & equipment, software & services, bins, vehicles, food & organics and more. www.awre.com.au
LAND FORCES 2020 BRISBANE CONVENTION & EXHIBITION CENTRE 1-3 JUNE 2021 Presented in collaboration with the Australian Army, showcasing equipment, technology and services for the armies of Australia and the Indo-Asia-Pacific. www.landforces.com.au
www.expotradeglobal.com/events/ victransport
63
Bystronic
26-27, 120
Complete Machine Tools
15
Emona Instruments
81
Empower Software
107
Export Finance Australia
67
Guhring 55 Hare & Forbes
4-5
Hi-Tech Metrology
37
IMTS
19, 79
Industrial Laser
9
Interlease
49
Intermach 65 Iscar 2-3 Kaeser 75 Linear Technik
23
Machinery Forum
119
MTI Qualos
21
Punchtech Australia p/L
6-7
RAM3D 85 Rigby Cooke
47
Ronson Gears
73
SEW-Eurodrive 17 Sheetmetal Machinery
13
Specialist Machinery Sales
41
SternaGL 93 Sutton Tools
71
Thyssenkrupp 11 William Buck
45
Air Liquide
insert
Sheetmetal Tooling
insert
Sterna Impact Card
insert
Intermach insert
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AMT JUN/JUL 2020
117
118
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 37
“LET’S MAKE IT OURSELVES!” PART 3
Combating dive-bombing Stukas with a street sign The year is 1941, WW2 has accelerated and Australia is cut off from Allies’ supplies. Australia – and Laurence - must devise a way to combat the infamous dive-bombing German Stuka aircraft. During the early years of the war, this terrifying craft’s howling, near-vertical attacks rained down terror on the Allies. With unprotected ships in the Middle East, Australia’s machine guns are rendered useless because they lacked mounts. But Laurence has an inspired and unusual solution.
A
ustralia’s munitions production problems in the early days of the war were in many ways much more difficult than those of any other Commonwealth country. For the first time in our history, we were thrown completely on our own resources. Almost overnight our lines of supply from Britain dried up, and yet we had to equip our own Army, Navy and Air Force and keep our essential civil production going. We were out on a limb, geographically and every other way - and no one could climb out to help us. Our fighting Services were being enlarged rapidly. That posed some fantastic problems for the manufacturing man, because, compared with armed forces of other countries like Canada, ours were small in quantity - yet they had to have a certain amount of every conceivable item of war equipment. And we had to create virtually the whole range of ordnance requirements from scratch. We’d make the dies, adapt the machinetools, do all the drawings and specifications and start a production process that, by rights, should have gone on turning out goods by the thousand. But when you were required to make only 250 - well, that was too many for a tool-room hand-job, yet it wasn’t enough for a steady production flow. It was a damned headache and enough to send a manufacturer grey overnight. Our Ordnance Production Directorate was a “reception centre” for almost every urgent requirement. The Army engineers were our most eager and anxious customers. They wanted everything from field telephone wire to pontoon bridges, and through our organization they got them. How we went about getting many of these things is an episode in itself – sounding like fiction sometimes. The unofficial things that were done, the way we slashed through red tape because we just didn’t have the time to wait for documents to come through official channels would have turned many of our public service colleagues grey if they’d known about them. One of my chief collaborators in this tape-slashing campaign was Maj.Gen. Sir Clive Steele, the chief of the Royal Australian Engineers. He and I “clicked” right from the first meeting. On one occasion Clive was sailing to the Middle East with supplies and reinforcements for General Blamey (Australian Imperial Force commander in the Middle East). Clive was worried about the lack of protection his ships would have from German Stuka dive-bombers as the ships sailed up the Red Sea. “I’ve got a feeling the Jerries will stop us before we even get to Port Said,” he said. “In one ship we’ve got holds filled with machine-guns. I reckon we should have a lot of them up on deck, ready for action. But I’ve got nothing to mount them on.’’ "One problem there, Clive,’’ I said, "Is that the Vickers machinegun won’t feed ammunition at a high angle, and they’d have to be aimed at very high angles if they’re to shoot at low-flying aircraft.’’ “Larry, I’d grab at anything” said Clive. “It’d be terrible for our boys to have to stay down below, unable to do anything, if the planes came over to bomb and strafe them.’’ As he was talking, I was looking down on Collins Street from my office window. Suddenly I got an idea. “Come over here, Clive, and look at this,’’ I said. I pointed down to a Melbourne City Council
The Stuka proved a terrifying weapon during the early years of WW2. it was considered the only plane which could dive truly vertically. With a dive-speed of 600 kph, its automatic pull-up “dive brakes” under both wings ensured the aircraft recovered from its attack-dive even if the pilot blacked out from the high g-forces. Its drawbacks included lack of manoeuvrability, flying-speed and defensive armament.
“No-Parking” sign in the street below. It had a heavy round base at the bottom, into which was fixed a tubularsteel pipe, with a round metal disc at the top. "If you were to use the stand as your machine-gun mount, cut the disc off the top and put a welded yoke on to the steel pipe, you’d be able to squirt the gun up into the air if the Jerries come over,’’ I said. “That’s it! That’s just what we need,” Clive cried eagerly. “Perhaps the belts would give a cross-feed, but we’d have a portable anti-aircraft mounting, and the boys will be able to shoot back.” We sent someone downstairs to bring the sign in off the street. We took it around to Australian Iron and Steel, and Mr. Trotter - another hero - had the yoke put on in place of the “No-Parking” disc. Clive tested it as an anti-aircraft mounting, and it worked perfectly. That was on a Saturday morning. By Monday we had twenty City Council “ack-ack” mountings on board the ship. I don’t think anyone ever told the City Council about it. To make it all nicely official, Clive and I designated the mountings as “Vickers Anti-Aircraft mountings, Mark II, Three Star”. The ship sailed, reached the Middle East safely, and later came an urgent signal: "Ship immediately 200 Vickers Anti-Aircraft mountings, Mark II, Three Star.” That order was quickly filled, but not at the expense of the City Council. Once we had satisfied ourselves that the design worked well as a portable mounting, we started making them. I’m afraid that when the war ended poor old Colonel Gipps, Chief of Army Inspection, was still trying to find the sealed drawings for them.
This is an extract from ‘Big Wheels & Little Wheels’, by Sir Laurence Hartnett as told to John Veitch, 1964. © Deirdre Barnett.
AMT JUN/JUL 2020
To be continued…
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