April 2017
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MANUFACTURING TECHNOLOGY
SOUTHMACH 2017
The industry game changer.
direct3dprinting.com.au
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COMMENT The Genesis of Kiwi Ingenuity.
Manufacturers to embark on Industry 4.0 study tour to Germany Improving productivity on the factory floor and keeping on top of technology developments is a core part of staying competitive for manufacturers. Increasing use of digital technologies will only strengthen the need for relentless innovation in the future. This remains true whether your business is an early adopter of new technology, or you simply need to know what your international competitors are doing to find your own ways to stay competitive. This is why the NZMEA, over the last year has focused on providing members with a better picture of developments in Industry 4.0, otherwise known as the Industrial Internet of Things or Networked Manufacturing – essentially the increasing use of digital connectivity in manufacturing processes and product
and service design. These technologies come with the promise of big increases in productivity, especially for small manufacturers – all the more important given the sluggish growth in productivity we have seen over the past 20 years or so.
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Together with Callaghan Innovation, NZMEA have held a number of workshops, such as a recent factory tour of Fisher & Paykel Production Machinery Ltd and even brought a German expert in the field, Dr Frank Wagner, to New Zealand to share his knowledge on where the technology is going and where the opportunities for New Zealand manufacturers might lie.
Or on our website from $60 per month. Plan ahead. Economically viable. A sensible solution.
As part of this ongoing effort, NZMEA and Callaghan Innovation, have jointly organised a study tour to
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Beyond the gloomy headlines, global index suggests manufacturing is in good shape Economic data released this week has provided some good news for the global economy. The Purchasing Manager Indexes (PMI) from around the world show manufacturing is at above long term averages or at multi-year highs.
order raw materials Lee Smales, Associate Professor, and other supplies Finance, Curtin Graduate School of for their firms, and Business, Curtin University so have insight on output and corporate performance in the short term.
The data suggests that economic growth will follow. Buoyed by low interest rates, and the prospects of government stimulus, firms are benefiting from a surge in new orders.
The PMI is an index where 50 is the key level. When readings are above 50 it indicates an increase in business activity, while a figure below 50 indicates contraction. Australia shows good signs with a PMI of 58, as do Canada and the United States.
The Australian PMI report includes comments from manufacturers that suggest current demand is driven by higher commodity prices, infrastructure projects, the continued NBN rollout, and higher defence spending. But it also highlights concerns surrounding energy prices and security.
In addition to the headline number, PMI reports also provide information on matters such as business conditions, new orders, employment, and prices. Looking at these components allows for a more nuanced view of how businesses are faring.
What is PMI?
Manufacturing in good health almost everywhere
The PMI is an important indicator for the health of the manufacturing sector, and is correlated with overall economic growth. The PMI is compiled from a survey of purchasing managers. These are executives who
Across the globe, the manufacturing sector appears to be in good shape. Of the recently released PMI surveys, 46 are above 50, signalling expansion. Three more are very close to that important benchmark. Even the UK,
Contact publisher@xtra.co.nz to find out more or Phone 06 870 9029
in the midst of Brexit negotiations, has a positive outlook with a PMI of 54.2. Of the sub-50 countries, Brazil and Greece are recovering from severe recessions and the survey results are improving. South Korea is in the midst of a political crisis following the impeachment of President Park Geun-hye, and so it is of little surprise that firms are holding back on new investment decisions. Closer consideration of the PMI survey reveals why the outlook is generally positive. Increasing levels of new orders are the key driver of this expansion. This
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CONTENTS DEPARTMENTS
7
4 5 BUSINESS NEWS
ADVISORS
EDITORIAL Manufacturing in good health almost everywhere.
Craig Carlyle
Strong support for new trade agreements from business. Exporters endorse trade strategy.
Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.
6 MANUFACTURING TECHNOLOGY
Creaform HandySCAN 3D scanner now certified by Airbus. The industry game changer. IoT changing the manufacturing landscape.
9 DEVELOPMENTS
12
Future Energy Leaders recognised.
10 SOUTHMACH 2017
Catherine Beard
Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, NewZealand’s largest business advocacy group, representing businesses of all sizes.
MZMEA at SouthMACH Kaeser to hold compressed air seminar.
13 ENVIRONMENT
Measuring waste to reap rewards.
14 ANALYSIS
15 Dieter Adam
Freetrade – a quest to level the playing field.
Chief Executive, New Zealand Manufacturers and Exporters Association has a Ph.D. in plant biotechnology, consulting and senior management roles in R&D, innovation and international business development.
15 DEVELOPMENTS
Manufacturers to embark on Industry 4.0 study tour to Germany. buildex/designex 2017 getting closer.
17 COMMENT 18 SMART MANUFACTURING The Genesis of Kiwi Ingenuity.
IoT to shake up manufacturing sector. Connexionz wins contract to manage New York ferry. Video fingerprinting for border control results in award. SnapLogix unveils “self-driving” technology.
17 Lewis Woodward
21
Is Managing Director of Connection Technologies Ltd, Wellington and is passionate about industry supporting NZ based companies, which in turn builds local expertise and knowledge, and provides education and employment for future generations.
24 FOOD MANUFACTURING
Methane from food production wildcard in combating climate change. Hivemind crowdfunds affordable bee surveillance technology.
26 NEW PRODUCTS
22
28 ANALYSIS 29 COMMENT 31 REAR VIEW
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Modular surge device for process reliability. Barrier system safe, efficient and reusable. Australia’s first certified flame-retardant polyuria coating.
The allure of authenticity.
Time to focus on the Health in OH & S.
Bringing greater certainty to an uncertain world.
Dr Wolfgang Scholz
Is HERA Director and a Fellow of the Institute of Professional Engineers NZ.
PUBLISHER
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Is the headline on the lead Page One article of this issue of NZ Manufacturer.
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CONTRIBUTORS
Dieter Adam, Holly Green, Dr. Wolfgang Scholz, Chris Barclay, Mark Champion, Simon van Wyk www.mscnewswire.co.nz
One of the key points in the article has the PMI indicating that current demand is being driven, in part, by infrastructure projects as in Auckland where there is a real hive of activity in the on-going developments in the city and suburbs that show no sign of abating in the next few years.
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Which of course leads us to the issue of immigration and local skills to make sure we have the people power needed to bring these developments to fruition.
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Vol.8 No.3 April 2017 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.
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Manufacturing in good health almost everywhere
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There is a fair bit on the IoT in this issue which has already seen a big shift in the interaction between humans and machines, and has brought about significant transformations in manufacturing. It is imperative that your business has the right technology tools to get ahead of the game, or at least be relevant. Some current cutting-edge applications are fuelling new markets for electronics and connecting the world. More success for a Kiwi company. Connexionz of Christchurch is providing eager New York commuters, anticipating the
launch of the new NYC Ferry operated by Hornblower starting service next month, with a new transport service integrated with technology they have developed (Page 21) The contract, awarded to Connexionz in a competitive international procurement process, commenced roll out in February and will be completed next month, with on-going service and support until 2022. Connexionz specialises in the development and delivery of Real Time Passenger Information (RTPI) and Intelligent Transport Systems (ITS) solutions for managing transport networks - including bus, rail and ferry services, as well as developing solutions for transit infrastructure, i n c l u d i n g t e r m i n a l and garage management systems. Connexionz solutions are highly regarded for their reliability and accuracy.
Success Through Innovation
EDITORIAL
Doug Green
BUSINESS NEWS
A lot of us would like to move mountains, but few of us are willing to practice on small hills. - Anon
Strong support for new trade agreements from business The Government’s Trade Agenda 2030 will be welcomed by the wider business community says MYOB. The most recent MYOB Business Monitor survey of 1,007 business owners found that 63 percent of respondents supported pursuing more free trade agreements with international trading partners, 10 percent opposed new agreements and 27 were neutral on the issue. “New Zealand businesses will welcome the announcement from Prime Minister Bill English that the Government intends pursing more agreements,” says MYOB General Manager Carolyn Luey. “Our country is reliant on international trade. We need to make it as easy as
possible for New Zealand businesses to do business with the world.” The survey was carried out in the final quarter of last year. When looking at just exporters, 68 percent supported pursing more free trade while just 6 percent opposed signing more agreements. The Government’s Trade Agenda 2030’s broad aim is to have 90 percent of New Zealand’s exports covered by free trade agreements by 2030, up from the 53 percent as it is today. MYOB’s survey revealed that 56 percent of exporters sold goods or services to Asia, 41 percent sold to the EU, 40 percent said the US, 25 percent to the Pacific and 7 percent to the Middle East.
“Our country
Strongest support for free trade comes from the finance sector (76 percent support) followed by agriculture and forestry (71 percent) and manufacturing (64 percent). “New Zealand is a trading nation, and whether it’s agricultural-based products or home-grown tech, we depend on trading arrangements to provide access to key markets,” says Ms Luey.
is reliant on international trade. We need to make it as easy as possible for New Zealand
“Businesses of all kinds know that the success of our economy is dependent on how effective we are at trading with the world. We wish the Government every success with achieving its 90 percent goal.”
businesses to do business with the world.”
Exporters endorse trade strategy Around half of all New Zealand exports are now covered by free trade agreements and the new Trade Agenda has a target of 90 percent of all exports by 2030. ExportNZ Executive Director Catherine Beard says exporters welcome the continued focus on achieving more
Commercial & industrial growth
new agreements, and the intention to seek further upgrading of existing agreements. “Exporters appreciate the commitment to the provision of education, information and support in overseas markets. This work is vital to the increase in New Zealand’s export trade
overall.
“Exporters also welcome the Trade
“We would like to see more work done
Agenda’s commitment to work against
to challenge non-tariff barriers that continue to impede exporters’ access to many countries, as well as work on developing overseas direct investment
distortionary trade practices and seek a level playing field for New Zealand exporters to compete on the world stage,” Catherine Beard said.
and growth in services exports.
Employment growth
Economic output
Crime rate East Tamaki is the largest industrial precinct in Auckland with 2000 businesses and a growth rate higher than the regional average.
getba
getba.org.nz
Greater East Tamaki Business Association Inc.
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MANUFACTURING TECHNOLOGY
Creaform HandySCAN 3D scanner now certified by Airbus Creaform, leader in portable 3D measurement solutions and engineering services, has had its flagship metrology-grade portable 3D scanner, the HandySCAN 3D, certified by Airbus and will be added to the company’s next Technical Equipment Manual (TEM) release.
* Metrology-grade measurements for aircraft maintenance: Users can digitise dent damage on metallic parts with the accuracy of up to 0.030 mm (0.0012 in.) and a resolution of up to 0.050 mm (0.002 in.) with high repeatability and traceable certificate.
This certification comes following the recognition of HandySCAN 3D’s specifications by the French National Laboratory for Metrology & Testing (LNE). Combined with Creaform’s powerful and easy-to-use VXelements software, the scanner can reduce measurement times by up to 80% compared traditional methods.
* Intuitive pass/fail testing: With its intuitive design and real-time software visualization, the 3D scanner ensures ultra-short learning curves so operators can get the critical information they need to regardless of their experience levels. All they have to do is point and shoot!
* Real-time visualisation and portability: Because it is so light and small, it can be used in any work environment, such as a hangar or outdoors, as it adapts to ambient and tarmac lighting. Users can easily perform 3D surface inspection of any part of an aircraft—including on and under wings. This certification by an industry leader like Airbus symbolises Creaform’s commitment to helping the aerospace as much as the automotive industries address their high-level of GD&T (Geometric Dimensioning and Tolerancing) requirements. With this certification, more and more
industry players are turning to Creaform technologies to facilitate and speed up their 3D measurement processes to carry out accurate assessments of aircraft mechanical damage. The goal is to provide user-friendly and highly advanced solutions to get airplanes back in the skies faster and enable airlines to slash the high costs associated with grounded aircraft. Creaform HandySCAN 3D scanners will soon be listed in the Airbus Technical Equipment Manual (TEM) which is referenced in the company’s Structure Repair Manual (SRM) and will apply to Airbus A320, A330/A340, A380, A300/ A310 models.
IoT, AI lead business tech investments Big companies are betting that the Internet of Things and artificial intelligence will bring about the biggest changes in their businesses and they’re putting up money to back that up.
Spring & Wire form manufacturing company where solutions are created for your problems. 09 277 5982 • www.natspring.co.nz
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Spending on IoT and AI both today and in three years are the top tech areas where companies are making substantial investments, according to a new study by PwC. The tenth annual Global Digital IQ Survey comprised a questionnaire answered by more than 2,200 business and technology executives in 53 countries. Large companies were well represented, with 62% of respondents in organisations with revenue of $1 billion or more and 38% with revenue
between $500 million and $1 billion. Spending is spread across areas including augmented reality and drones, but the Internet of Things and artificial intelligence spending dwarfs them all. Here’s where execs are making the most substantial investments today: •
73% -- Internet of Things
•
54% -- Artificial intelligence
•
15% -- Robotics
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12% -- 3-D printing
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10% -- Augmented reality
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7% -- Virtual reality
•
5% -- Drones
A diamond is a chunk of coal that made good under pressure. - Anon
MANUFACTURING TECHNOLOGY
The industry game changer - 3D Printing or Additive Manufacturing Called disruptive technology 3D printing with metals has exploded onto the world of parts manufacturing. With its key benefits of time and cost savings and real opportunities of never-before-achieved solutions 3D printing is heralded as a significant game-changer.
market cost of metal powders.
Selective Laser Melting (SLM)
A more important advantage of the BeAM machine lies in there being no constrained operational spaces making it highly suitable for working in difficult to reach places for repair work, or building and shaping an oversized part.
The rate of uptake across a number of industry sectors is recorded daily in international press with industry leaders extolling forecast benefits for the design, development and manufacture of aeronautical parts, car parts, and medical implants, and more recently 3D printing is being realized as a secondary contributor to industries such as injection moulding.
An example used by the BeAM company is the repair of critical turbine parts. In 2015 some 800 aeronautical parts were repaired and put back into use under very demanding regulation requirements.
Selective Laser Melting occurs where a multiple laser beams are directed towards a flat bed of metal powder following a program predesigned in CAD. The product or products are constructed in a build chamber containing an inert gas atmosphere with the laser beams making successive passes over the metal powder guided by a 3D CAD program.
To embrace the new technology of additive manufacturing requires an understanding of the techniques used by the currently available laser systems. This article will explain the two key processes of SLM and LMD that use metal powders with examples of each as used in industry. Laser Melted Deposition (LMD) or Direct Energy Deposition (DED) Laser Melted Deposition is a process where the laser energy is transformed into thermal energy through interaction with a stream of metal powder, solidifying it into a dense deposit with an excellent metallurgical bond. The high brightness laser source means the laser spot can be focused right down to micron range resulting in very accurate part building. The example laser system is a BeAM developed by a French laser company BeAM Machines. The powder is injected onto the desired location using a coaxial nozzle, patented as a CLAD nozzle, that guides the powder through a coniform annular gap encircling the laser beam, onto the melt pool. By directing the powder using inert gas very narrow tracks of less than a millimeter can be achieved. The flexibility of the coaxial nozzle provides high efficiency of powder use, an important factor given the current
A measure of this success has occurred where the repaired turbine parts showed a lifecycle six times their original lifecycle enabling the craft to fly 60,000 hours without further repair as against the 10,000 flying hours previously achieved. Where metallurgically bonded surface repairs can outlast original part life the results makes the DED process a very economical proposition. Safran (Snecma), a French aircraft company that has an ‘Open Innovation’ collaborative program, worked with a French laser company BeAM to explore the opportunities offered by the DED process. The outcome announced in June 2015, was the adoption of this technology to Safran’s additive manufacturing department to use in the development of new parts as well as for repairs. The BeAM Machine is designed to effectively perform three different AM processes, namely, reliable direct manufacturing of complex shapes as stand alone products thanks to the 5 axis motion system with a fixed cladding nozzle orientation ; secondly, new features or functions can be added to existing parts; and thirdly repairs of worn out parts. A final consideration is the acquisition of metal powders. Powders provide a greater economic use of raw materials through optimization in nozzle control. LMD uses powdered metal quality already available for other industrial uses and does not require very fine metal or alloy powders. Micron sized powders from 45 to 75 to 125 microns are all usable in the specifically designed nozzle. A full range of metals and alloys are available including stainless steel, tungsten carbide, nickel alloys such as Inconel, and cobalt alloys such as Stellite. Companies who choose to invest in this range of technologies may find powders are supplied by the laser company itself thereby minimizing powder sourcing issues.
Powder is added as the product is built hence the term additive manufacturing. Lose metal powder is a health hazard so SLM laser systems require build chambers to keep the powder confined to a specific area of the machine with handling devises or procedures built-in. Build chamber size can restrict the size of the end product and this can be seen as a limitation, however, the turn-key style solutions offered by SLM Solutions, by way of example, constantly seek to up-grade operations in terms of increasing speed of laser operation and automating metal powder management. Product designs are developed using a 3D CAD program and this allows for desk-top alterations and review well before production actually occurs. Using CAD in pre-production has been shown to keep costs low, to improve on the current product design and even to design complex products never before possible. The model created in the CAD program is broken into ‘layers’ that the SLM laser system uses to define the scanning path of the laser beams. As the machine deposits thin layers of metal powder the laser beams pass over the powder melting it and gradually building the product through the repeated process governed by the geometric information contained in the CAD model. A complete melt provides a density of approximately 100% achieving mechanical properties that can be matched with traditionally manufactured parts. With additive manufacturing, parts must be re-designed, not transitioned from previous processes. The 3D CAD design offers greater options not available to tooling processes, manufacturing complex aesthetic shapes is no longer a problem. 3D CAD design parameters allow the design of very complex structures inside a part.
to be machined together. Now, using SLM technology there is one single part, and, it is five times stronger. Advantages of time to completion are evident, while less joining provides for a stronger end product, a major attraction where parts are used in high stress environments such as aircraft. SLM Solutions now provide powders to their installed base. Popular amongst users is titanium due to the light-weight properties attained in a finished part, an attractive proposition to aeronautics and automotive companies. Stainless steel and hard steels (tool steels) are also in use, an example is building conformal cooling inserts for use in injection moulds to improve mass production outcomes. Choosing the best AM solution The general convenience of additive manufacturing (AM) of metals is already evident. Uptake of system type either LDM or SLM will indicate the direction taken by different industry groups as the most appropriate solution. It is clear AM reduces time and costs from design to manufacture. While constraints exist we are witnessing financial gain, efficiency growth and process improvements that are significant and outweigh some traditional manufacturing processes. Costs of materials and AM technologies remain high but amortized across volume and early market penetration means opportunities will overcome the challenges of start-up. The AM 3D printing industry is relatively young and healthy offering new uses of laser technology while challenging manufacturing processes. European countries and the USA are investing heavily, Australasia needs to keep up with this fast paced game-changer called 3D printing or we could get left behind.
For example the fuel nozzle for aircraft engines manufactured by GE in the USA when using traditional processes comprised 18 separate parts that had
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MANUFACTURING TECHNOLOGY
Strength of mind is exercise, not rest.
- Alexander Pope
IoT changing the manufacturing landscape IoT technologies will cause mass disruption in the manufacturing landscape. Many changes will stem from their adoption, some of which are below:
for humans. The required education level will rise and necessary skillsets will shift. Demand for higher- skilled and higher-wage resources will increase.
- One of the most obvious opportunities of IoT lies in operational efficiency and productivity gains. These technologies will enable for better asset utilisation, operational cost reduction and increased worker productivity.
There will be a heightened need for engineers to develop robots and for data scientists and managers to analyse data and draw insight.
OEE (Overall Equipment Effectiveness), a concept introduced in 1982, is a KPI percentage calculation that uses equipment availability, productivity, and quality metrics to arrive at a number that summarises how well a piece of equipment or production line is operating. It has resurfaced and is a hot trend in the roll based industries as instrumentation and analytics is a key enabler which allows for more accurate metrics of equipment performance, better monitoring of production line quality and improved maintenance planning. - In the long term, industry verticals and shared relationships will merge with customers, partners and data. Target outcomes might relate to the operations or maintenance of a product (e.g. reliability), or to the savings generated from the use of a product or piece of equipment. There will be a shift from selling products or services to selling measurable outcomes that will redefine the base of competition and industry structures. New business models around productsas-a-service, pay-per-use models and monetisation of data will also emerge. - Increase in automation will take over lower-wage and lower-skilled jobs that are repetitive and unsafe
The image below attempts to identify enablers and inhibitors of the Industrial Internet along with key opportunities and disruptions:
IoT essential technologies manufacturing
- Real Time, Big Data Analytics: The information collected by all IoT “things” will populate huge volumes of data, creating problems of scale. Machine learning to identify patterns has already seen massive investments from huge technology vendors like Facebook and Google and will be used for this purpose. The traditional approach of obtaining data, storing and then processing and analysing will not work. Real time analysis of data streams is needed.
business
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There are many new technologies which fall under the IoT umbrella, however a wide range of conventional IT technologies will be used to materialise it. Below are some new technologies which seem to be on every organisation’s radar and can be marked as key enablers:
grow your
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Data privacy and acceptable use will become major challenges. For example is the data from a normalisation furnace the property of the plant owner or the machine manufacturer? - Device Management: Management and monitoring will be required for all smart sensors (“things”) to find out if they are alive and/or connected, checking software and firmware updates, reporting, etc.
Develop your people
&
New tools such as high-volume event stream platforms, the ability to operate on new data types and new architectures where analytics is distributed throughout the network of things will be created. Examples of such technologies include: Apache Storm, Apache Spark, Google Cloud Dataflow and IBM InfoSphere Streams.
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Platforms managing and monitoring thousands of connected devices over Wi-Fi or cellular networks will be needed. Vendors selling tools derived from Mobile Data Management (i.e. Android) who seem to be able to bridge this gap which exists for IoT devices lack features or related pricing models. There is not a platform satisfying all foreseen needs, manufacturers employing IoT technologies may have to change platforms during the lifetime of long-life products. - Low-Power, Short-Range Networks: The IoT implies many more objects will be using wireless networks, which could create noise and interference issues. Network designers must consider the impact of new wireless products on existing services such as Wi-Fi. Networks need to be of low bandwidth and high connection density because of the increased
number of devices which will be connected to the network. IoT networking technologies will be focused on short range (tens to hundreds of meters), long battery life (years), relatively low bandwidth, low endpoint cost and medium to high density (hundreds of adjacent devices). Current technologies include ZigBee, Bluetooth, Zwave/G.9959, Thread, Ant and Wi-Fi. Maybe the future will lead to environments requiring gateways to convert between wireless protocols and devices, no single standard will prevail. - Processors: The processors and architectures used by IoT devices will define many of their capabilities. Such as whether they are capable of strong security and encryption, power consumption, whether they are sophisticated enough to support an operating system, updatable firmware, and have embedded device management. Low-end, 8-bit microcontrollers will dominate the IoT through 2019 at least, which implies that many IoT devices will be extremely simple and incapable of running an operating system or performing sophisticated functions such as encryption unless built in as a chip hardware feature. - Operating Systems: The traditional operating systems consume too much power, need fast processors and too much memory for IoT devices of the future. Guaranteed real-time responses is something that these operating systems do not have, but will be in future demand. This will affect the programming models and development tools. Embedded operating systems will emerge, probably from open-source projects but at the moment it looks like there will be a wide range of IoT
DEVELOPMENTS
Seek first to understand and then to be understood. - Stephen R. Covey
NZPICS launches APICS CLTD On the 6th of April, NZPICS Association for Operations and Supply Chain Professionals, an affiliate of global organisation APICS, USA launched their new course CLTD, Certified in Logistics Transpiration and Distribution in New Zealand at Hotel Holiday Inn, Airport Okas, Auckland. NZPICS invited industry leaders, Vijay Reddy, GM - Supply Chain Innovation, Fonterra, Morgan Proctor, Director Supply Chain, NZ Defence, Vaughan Grant, GM - Supply Chain, Foodstuffs North Island and Warren Beard, Senior Manager - Advisory, Ernst & Young to speak at the launch event. The delegates came from many industry sectors including FMCG, 3PL, Dairy, Logistics, Healthcare, Building Products among others. Everyone
agreed that there is a gap in the NZ market for a higher level Logistics course and APICS CLTD could fill that vacuum. The APICS CLTD Learning System is a comprehensive professional development and exam preparation program. It consists of eight reading modules and interactive, web-based study tools that reflect the new APICS CLTD Exam Content Manual (ECM). This program provides a comprehensive body of knowledge and standards for those in the logistics, transportation and distribution industries. Each module will further empower you with an understanding of best practices, knowledge and skills necessary to maximise your organization’s efficiency and impact the bottom line.
By Vishnu Rayapeddi The APICS CLTD 8 modules are: 1. Logistics and Supply Chain Overview, 2. Capacity Planning and Demand Management, 3. Order Management, 4. Inventory and Warehouse Management, 5. Transportation, 6. Global Logistics Considerations, 7. Logistics Network Design, 8. Reverse Logistics and Sustainability. Why earn the APICS CLTD credential? As an APICS CLTD designee, you will have the skills and knowledge it takes to get noticed by employers and stand out from your peers. Earning the APICS CLTD credential will demonstrate your commitment to advancing both your career and your company’s operations.
Who Should Consider CLTD? • 3PL and Logistics Services • Manufacturing Firms • Retailers • Government / Military • Mega-Construction • Energy Production/Supply • Distributors • Importers / Exporters • Service Industry Providers & Consulting For further information visit www. nzpics.org.nz
Two young Kiwis recognised as global Future Energy Leaders The BusinessNZ Energy Council (BEC) is pleased to announce two young New Zealanders are on their way to becoming the next generation of New Zealand’s energy leaders, capable of solving the world’s most pressing challenges around energy and sustainability. Bennet Tucker from emsTradepoint, and Daniel Gnoth from Powerco have been chosen by the World Energy Council to join its Future Energy Leaders’ Programme - the FEL-100 an exclusive group designed to help shape, inspire and grow energy leaders of tomorrow.
Bennet and Daniel join Tina Frew from Z Energy, who was already a FEL, bringing the New Zealand contingent to 3 out of the 100, reflecting the high calibre of our pool of nominations.
individuals from across the globe who represent the different players in the energy sector, including government, energy industry, academia, civil society and social entrepreneurs.
The World Energy Council asked each Member Committee - in New Zealand’s case, the BEC - to nominate their most promising young professionals for the global programme.
Newly appointed FEL Bennet Tucker says, “It’s very exciting to be part of the FEL-100 programme. It’s an honour to get this unique opportunity to be part of a global dialogue on the future of energy, and I look forward to making the most of it.”
The programme is designed to build on the ideas and innovative potential of the next generation, to develop new ways of thinking and frame the future of our energy systems. It brings together a network of exceptional
Fellow new FEL Daniel Gnoth says, “I feel privileged to have the opportunity to contribute to a sustainable energy future on a scale enabled by the
Daniel Gnoth
Bennet Tucker
FEL-100 programme. It’s important to me to make a meaningful impact and I look forward to working with talented people, learning a lot and making things happen.” The BEC would like to take this opportunity to thank Andrew Millar from Martin Jenkins and Jenny Lackey from EECA who have served as FELs and are now a part of the FEL Alumni programme.
Oji Fibre Solutions invests in Penrose paper bag plant Oji Fibre Solutions (OjiFS) has unveiled upgraded and expanded facilities at its Penrose (Auckland) paper bag manufacturing plant. The $30 million capital investment lifts production capacity and provides a world- class food safety environment that aims to future proof the business and continue to set the global standard in dairy bag production. The new facilities were officially opened by the Minister for Economic Development, Hon Simon Bridges. OjiFS chief executive Jon Ryder said the event marks one of the first milestones in an exciting new chapter in the company’s history. “The decision to invest $30 million into this site was made in February 2015, within months of the purchase of our business (formerly CHH Pulp, Paper
and Packaging) by Oji Holdings and Innovation Network Corporation of Japan (INCJ) in November 2014. It is a strong sign of Oji’s commitment to New Zealand and our intent to grow the Oji Fibre Solutions business in NZ and Australia.” Dr Ryder said the business has traditionally been a supplier of commodity products – the Penrose investment reflects its transition to become more of a solutions company for its customers. “We are determined to develop a portfolio of value added products that address the sectors we support; in this case dairy, flour and sugar. Our investment provides a world- class food safety environment which is vital to ensure the integrity of the supply chain,” he said.
The investment project has seen the extension of the plant’s existing hygiene hall and upgrade of a conversion line that produces multi-walled bags for dairy and food powder packaging. It entailed upgrading of all aspects of critical hygiene, installation of state of the art bag-making equipment and construction of an additional 3,000m2 of onsite warehousing and associated facilities. Purpose built and equipped to meet the Ministry of Primary Industries’ guidelines for the design and construction of dairy facilities, the facilities also comply with stringent customer engineering standards for food safety. The new conversion line produces 48 million 25kg dairy and food powder bags per year, bringing total production to around 100 million
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bags per annum. Oji Fibre Solutions is a leading supplier of multi-ply paper bags in New Zealand. In addition to supplying the dairy and food bag market, its Penrose business also produces tens of millions of paper bags for a diverse range of market segments including cement, vegetables and food products. Its current market is primarily domestic however the business has rapidly growing export volumes to Australia, the Pacific Islands and South America. Key customers include major dairy processing companies in New Zealand, Australia and South America along with other large scale food product manufacturers
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NZ Manufacturer April 2017
9
SOUTHMACH 3D Printing Systems
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Intent Group
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John Brooks Ltd
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Control Devices New Zealand Ltd
Jonel Hydraulics
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Design Energy Limited
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Stand Details: Black Panel System 2.3 m high - 45mm thick (Measurements are from Centre of Panels) Grey Carpet One Multi-Plug Power Point General Lighting Stand Number
Copyright - Drawing the Property of XPO Exhibitions Ltd and cannot be used or copied without the permission of XPO. PLEASE NOTE: This plan may change as sales and circumstances dictate.
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PLAN DATE: DRAWN BY: Nick Batty Version: XPO Exhibitions Ltd V 47LC 30/03/17
text
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SOUTHMACH
Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius—and a lot of courage - to move in the opposite direction. —E.F. Schumacher
Kaeser to hold compressed air systems seminar The Maintenance Engineering Society of New Zealand has invited Kaeser Compressors NZ to run seminars at SouthMACH 2017, one wil be on ‘Industrie 4.0’ compressed air systems. The way we manufacture is no doubt entering a new era led by the advances, networking and connectivity capabilities of production processes and technology. Coined Industrie 4.0, this new era presents a number of opportunities and benefits to manufacturers that choose to embrace this ‘factory of the future’.
Like the MESNZ, Kaeser Compressors is committed to supporting engineers on the ground. This has led to a strong association with the Society, including being the proud sponsor of the MESNZ Network Evening Series. These events bring members and interested parties alike together at local operations in a casual after hours atmosphere, to learn something about the host’s world and network with other engineers over light refreshments.
Peter Eckberg, the Managing Director of Kaeser Compressors NZ Limited - a subsidiary of one of the world’s largest compressed air systems providers and compressor manufacturers - will be running the ‘Industrie 4.0: the future of manufacturing landscape’ seminar on behalf of the MESNZ.
Dieter Adam, NZMEA Chief Executive.
Visit the NZMEA at SouthMACH The New Zealand Manufacturers and Exporters Association (NZMEA) is returning to SouthMACH to showcase “Manufacturing in New Zealand” in 2017. The NZMEA stand at SouthMACH will highlight examples of products from manufacturing member companies to show off some of the exciting and innovative work that is being done nationally. NZMEA wants to show why manufacturing is crucial to the New Zealand economy, how innovation is key to this and how you can keep your company globally competitive. NZMEA invites manufacturers to visit their stand to discuss views on manufacturing, as well as what they can do to help your business succeed. This could be access to knowledge and experience of other manufacturers, advocacy, or a variety of services and support tailored to suit your needs. As well as the stand, NZMEA Chief Executive, Dieter Adam, will be presenting a talk on “Industry 4.0 – where we are at, and what does it really mean for New Zealand manufacturers?”. This will be based on impressions gained from a recent study tour to Germany. In addition to this presentation, the NZMEA will be holding a panel discussion, on the increasing pace of change in (digital) manufacturing technologies – how do we harness these new technologies to drive up productivity on the factory floor and beyond? This will focus on new developments in manufacturing technology and
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give further details on a recent study tour to Germany, organised by the NZMEA and Callaghan Innovation, for manufacturers to attend the Hanover Fair and visit a number of manufacturers and industry groups specialising in Industry 4.0 / Networked Manufacturing. The NZMEA supports and represents New Zealand’s vibrant manufacturing sector with the asingle focus on manufacturing in New Zealand promoting, supporting and advocating for the sector and their members. Membership, made up only of manufacturers, allows NZMEA to keep a sharp focus on their needs. A thriving manufacturing sector is vital to New Zealand’s economy, and is a key component to building a more prosperous, productive and sustainable economy, with better jobs and living standards for all New Zealanders. To achieve this, we need successful manufacturing businesses, like yours, to generate export income, growth and employment. NZMEA supports your business – by circulating information, providing relevant events and training and other tailored services. By connecting you - to other manufacturers’ knowledge and provide networking and peer-learning with manufacturers like you. Speaking up - on your behalf by actively engaging with the media and government to represent the views and concerns of members, while promoting the achievements and importance of manufacturing. And collaborating with like-minded business organisations to enhance the impact of messages.
If you see a snake, just kill it. Don’t appoint a committee on snakes. —Henry Ross Perot
ENVIRONMENT
Measuring waste to reap rewards For two decades New Zealand has been criticised by the OECD* for a lack of reliable, comprehensive data on waste. Addressing this is an issue for central and local government; however, it does raise an important point for industry. Do you know what waste your business generates? Do you measure your waste? With sustainability rapidly moving up the boardroom agenda, resource recovery specialists, 3R Group, encourage businesses to take a closer look at their waste. Management guru Peter Drucker famously said “if you can’t measure it, you can’t manage it”. How do you manage your waste effectively as a business if you’re not measuring how much you generate, what type of waste it is, how it was produced and what you do with it? While controls on what come into a business may be strictly monitored and regularly reviewed for efficiency, quality, and cost, we often fail to put the spotlight on what goes out through waste services. With the exception of hazardous waste, the low cost of landfill and low level of regulation around waste in New Zealand is likely to be a key factor in our casual attitude to it. And, let’s face it; the waste bin is the easy option for most. Our experience with manufacturers and organisations across a variety of industries shows that a closer look at your waste can lead to some surprising outcomes. In one business case, a review of a particular waste stream led to a simple process improvement with resulting savings of nearly $250,000 per annum. In another, a report we undertook on waste practices at a large organisation dealing with hazardous waste, showed staff regularly choosing the most expensive disposal option due to a lack of knowledge about how to categorise their waste. Again, cost savings will be the outcome of process improvements in this area. Reducing costs is a welcome outcome for any business; however in an age
Toni (right) and Trevor at Apollo.
where customers and consumers alike are looking for brands and organisations which care about the impact their businesses are having on the environment, the benefits can be much broader. Working with a specialist in waste and resource recovery can lead to benefits such as new markets, new customers, more efficient resource use, eliminating waste, safeguarding your social license to operate and reducing risk. Every business generates waste. Take the opportunity to have a closer look and make your waste work harder for you.
About 3R Group 3R Group works with businesses to assess their waste stream, looking at how waste can be reduced and resources better utilised. The primary aim is to help companies join the circular economy by diverting waste from landfill, improving resource efficiency, reducing costs and creating opportunities. Contact us to take a closer look at your waste. www.3R. co.nz * OECD Environmental Performance Reviews: New Zealand 1996, 2007, and 2017
Greeting at landfill.
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ANALYSIS
Almost all quality improvement comes via simplification of design, manufacturing ... layout, processes, and procedures. —Tom Peters
Freetrade - a quest to level the playing field -Dr. Wolfgang Scholz,HERA Director Steel dumping ‘steal’ talks and ‘dump’ the real issues Chinese Premier Li Keqiang’s recent visit to New Zealand last week brought much attention to free trade and export opportunities for our country – but did the right topics get the focus they deserved? Amidst steel dumping headlines, China’s strong interest to balance its trade by importing into New Zealand flew under the radar – a worrying outcome given the complexity present in imports which offer plenty of opportunity for non-transparent trade, avoiding product conformance and selling at costs which are too good to be true. It doesn’t take much to see that this tilts our free trade playing field and challenges our sustainable manufacturing base – if we’re to combat this, we all have to be out there fighting for fair and equal trade within a worldwide free trade framework. “Despite China’s Premier Li Keqiang claims that steel imports from China are not dumped, our concerns go wider than this and include non-price criteria such as lacking product conformance.”
Analysing the talks Exploring mainstream media comments around the recent visit of Chinese Premier Li Keqiang the strong focus on free trade and the emphasis on export opportunities for New Zealand’s mainly primary products is noted, but what was missed was trade has to be balanced, and Premier Li has stressed China currently has a trade deficit with
New Zealand - and therefore a strong interest to close this gap by importing more to New Zealand. He also assured us that China isn’t dumping steel on the New Zealand market – a good statement, however our industry’s concerns with steel products from China and other Asian countries is wider than just dumping usually defined as selling the same product overseas at cost below that of the local market. China has delivered its overcapacity in steel to the world which has resulted in a depressed world steel market leading to a price war, with our own New Zealand landed steel prices being below 2000 cost last year. This has subsequently caused international private sector mills to be without profit and many to close, and many western countries have imposed extra tariffs on Chinese products in order to level the playing field and protect local industry. To date setting steel dumping tariffs hasn’t been the case in New Zealand, but the fact remains that we are experiencing a flood of steel being offered largely from Asian mills often without the required product conformance assurance and at prices which question the ability of any producer to make a profit. Increasingly this now also applies for fabricated steel where product conformance and the question of fair price is much harder to prove – here, the potential impact on our industry is even more fatal than just in the mass-produced primary steel product market.
At HERA we believe that in terms of balance of trade, local manufacture in place of imports is as valuable to the local economy as are the celebrated exports. On the basic assumption that local industry is competitive and imports are on par in terms of value for money and performance - keeping local manufacturing in place of imports needs as much consideration as our drive to export – and we think assisting local industry to remain competitive will not only keep local jobs, but prepare them to be more competitive on the world market as well. It’s pleasing to note these talks have sparked the call for Chinese doing business in New Zealand to become good corporate Kiwis and that China and New Zealand want to spearhead free trade in a world where free trade is a desirable position - but wide acceptance only comes if it is fair and equal. New Zealand and our industry can really play a role in this by demonstrating product conformance and being vigilant and uncompromising here in New Zealand around it – in turn, assisting China to get it right too. We must learn from the past, yet people readily forget – and we saw this in the Kobe and San Francisco earthquakes where brittle fractures occurred due to weak steels. This resulted in regulations and codes calling for careful design of seismic frames to meet very specific “seismic requirement” – a boundary still pushed, particularly with importers who aren’t
exposed to these needs daily.
With persistence a drop of water hollows out the stone At HERA this means providing constant reminders, active advocacy and education to achieve change, and as a result we’re making progress - especially with educating around product conformance and the uptake of the newly introduced Steel Fabrication Certification (SFC) scheme amongst our industry. This work has increased the number of specifier and reviewers within industry, building authorities and government agencies that understand the requirements of steel construction product conformance – an effective watchdog for inconsistent imports. We believe that if our industry delivers consistently on this front we’ll be in the running with all stakeholders and end-users - putting us in a strong position to demand equal performance from competitors. The next step is staying in contact with MBIE to formulate and garner some response around the enforcement of this for critical products from them – something HERA is committed to do.
“If level playing field conditions are maintained by all trading partners and their governments enforce them - we call this fair and equal free trade, and all will be winners” If you’re like me, you want to be able to sleep soundly at night in the knowledge that the work you do will perform and that you’re a socially responsible employer paying fair wages, tax payments and implementing health and safety. And, as an industry - it’s fair to expect the same commitment and dedication from those who import as well. When we get this right the cost gap between imports and local manufacture will be much closer and most socially responsible product end-users will be willing to pay the extra cost to get assured quality.
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DEVELOPMENTS
There are no secrets to success. It is the result of preparation, hard work, and learning from failure. —Colin Powell
Six ways to adapt your business model to disruptive technology Technology is always changing, and it is changing faster and in more ways. Below are six simple things to keep in mind as you modify what you do and how you do it. Know what your business model is When things are stable, having a deep understanding of your business model doesn’t really matter much. But when you need to change to adapt to disruptive technology, you better have a good handle on what it is: what are you selling, who are you selling it to, where does capital come from, how much capital will you need, how do you reach your audience, how do you make or do what you are selling, how do you sell it, and how do you support your customers?
Stay Informed
similar technologies.
Keeping abreast of current technology can be a full-time job, let alone looking for what is coming. Finding a few good news sources for technology in your industry is the most important step. You need to invest in a resource that summarises trends and changes.
Pick their brain, get their advice, and maybe even hire them.
In addition, you should follow overall technology trends and see how they are impacting other businesses. You don’t need to be an expert, you just need to know what is going on before it is too late.
Use experts Once you have identified a technology trend that can be a threat or an advantage, find someone that is already there or that has dealt with
Rent, don’t buy or develop Adapting your business to a new technology can be expensive, and the modifications you are making could also be wrong. Buying expensive technology or developing it in-house can be expensive and may lock you into the wrong solution.
Adapt to change, not hype New technologies almost always overpromise and under deliver. The key is being able to distinguish between what is hype and what new ideas will change everything. Sometimes this is more about dealing
with the hype of a new technology as people figure it out.
Stay focused on fundamentals Going back to your business goals is the most important thing you can do. As new technology comes, you have to relate it to what you fundamentally do, and what you want to achieve. Is the trend an opportunity or a threat, and how should you deal with it to maximise your business goals. By staying informed and following some basic guidelines your business can not only survive the rapid pace of technological change, it can benefit from it.
continued from Page 1
Manufacturers to embark on Industry 4.0 study tour to Germany Germany for a delegation of twelve New Zealand manufacturers to visit the Hanover Fair, focusing on Industry 4.0 workshops, and to visit a number of companies that are leading developers and adopters of this technology. Germany owes a lot of its prosperity to its strong manufacturing sector, and both government and industry have recognised the potential of these new technologies and are acting
accordingly, with both sides investing heavily to retain their country’s leading position in manufacturing. Apart from spending three days at the Hanover Fair, the trip will include factory visits to dedicated Industry 4.0 showcase manufacturing plants set up by Beckhoff, FESTO, SEW Eurodrive and Trumpf, and visits to applied research facilities at the Fraunhofer Institute as well as a technical institute
specialising in helping SMEs pick up these technologies. The latter is of particular interest to the delegation – even in Germany early experience shows that getting SMEs to exploit the opportunities offered by Industry 4.0 isn’t a straightforward exercise. This trip will give those who attend a unique opportunity to see what’s happening at the leading edge of
Industry 4.0 development. It will also equip participants with valuable impressions, insights and experiences to share with the wider NZMEA membership upon their return. NZMEA sees it as a core responsibility to help members remain globally competitive, among other things, by adopting new technologies to raise productivity and offer their customers smarter products and services.
continued from Page 1
Beyond the gloomy headlines, global index suggests manufacturing is in good shape suggests that expansion will continue for a while as the orders are fulfilled. All told, orders are falling for only four countries. In order to deal with the new orders, firms need to increase their labour capacity, either by asking workers to work longer, or by hiring new workers. The employment component of the US PMI is at the highest level since 2011, and firms appear to be finding it more difficult to find skilled workers. The increase in employment is clearly a positive sign for economic activity. Headwinds But there could be some headwinds on the horizon, most notably inflation. One concerning factor is the increase in price levels witnessed across the globe, even where the manufacturing sector is contracting. This is largely driven by
the substantial increases in the price of raw materials in recent times. In an effort to encourage growth, central bankers have maintained low interest rates. But there is a risk that price increases will lead to inflation, which will be difficult to rein in given extraordinarily low interest rates. The US PMI suggests American employers are struggling to find suitable workers. This also hints at possible future wage inflation. If this did occur, then central banks may be forced to raise rates more quickly than expected. This could stifle economic growth in the process. There is also the risk that President Trump enacts the protectionist trade policies he called for on the campaign trail. Whether or how this impacts the US economy, the barriers and taxes would affect manufacturers elsewhere.
In the end, the PMI data released this
However, we, and especially central
week suggests the global economy will
bankers, should keep an eye on prices,
pick up speed in the coming months.
since a surge in inflation could derail
This will translate into job creation.
prospects for growth.
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NZ Manufacturer April 2017
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DEVELOPMENTS
Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all. —Dale Carnegie
buildnz | designex 2017 - New exhibitors. New features. New opportunities With just under 3 months to go until kick off New Zealand’s premier trade show for the building, construction and design industries, buildnz | designex is well on its way to being a sell-out event making it one of the largest for many years. Organisers XPO Exhibitions are excited about the introduction of new initiatives visitors can expect to see in 2017. “This year’s event will present visitors with more features, destinations and business growth opportunities than ever before,” says Tony Waite Events Director of buildnz | designex. Buildnz | designex (co-located with The National Safety Show) will see up to 300 exhibitors including New Zealand’s leading suppliers and the addition of many new companies excited to showcase the latest products and new technologies that are shaping both the industry of today and the future. Waite explains “when attendees arrive onsite they will notice a number of new initiatives at the event that will deliver greater value to their visiting experience and ensures the event remains relevant, topical and above all informative. “There is simply no other event that brings together over 6,000 industry
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professionals to discover hundreds of new products, explore the latest technology and to be informed and to learn from leading industry experts.”
and we look forward to sharing these strategies with a wide industry audience at the show,” Warwick Quinn, Chief Executive, BCITO.
One such initiative is the Recruitment and Growth Hub developed in partnership with BCITO. This is a new premium destination within buildnz | designex that focuses on growing your business through developing your workforce.
Another highlight is The Build Summit, a dedicated industry summit offering key updates and innovations within the building sector and focusing on the issues facing the industry today – in plain English.
The hub will be offering visitors free Business Mentoring consultations, the chance to attend valuable seminars around building a culture of business growth and retention, and the opportunity to speak directly with BCITO Training Advisors and Business Development teams. The Recruitment and Growth Hub provides a networking opportunity for employers to meet with potential employees and help address the current skilled labour shortage, and the need to train an extra 60,000 workers over the next 5 years. “We’re delighted to partner with buildnz | designex this year and to provide this opportunity to industry people attending the event. In partnership with industry, we’ve developed Workforce Development Plans for each trade under our coverage
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Key themes across The Build Summit surround productivity, capacity, quality management and ultimately how to contribute to the bottom line for your building business. The impressive line-up of speakers features thought leaders from both New Zealand and abroad including; Mat Colmer, built environment specialist from the UK who will be speaking about digital construction. Rob Sobyra who will be talking to Construction Skills Queensland’s Farsight Project, predicting the future of construction work. Domestic speakers include Paul Hobbs, giving an update from MBIE, Jenny Parker from National Association of Women in Construction, and President of New Zealand Institute of Architects, Christina van Bohemen. Delegates attending The Build Summit will be presented with innovative case
studies, panel discussions along with highlighting new technology that is impacting the construction sector. For the full programme or to register see www.buildsummit.co.nz Add to this a comprehensive programme of free to attend professional development seminars including keynote speakers Professor Mark Burry and Professor Jane Burry, special features, networking opportunities, show-only specials, and the opportunity to win a huge array of prizes (including a brand new Ford) this is the one event the industry won’t want to miss. A full seminar program can be viewed at www.buildnz.com Held at Auckland’s ASB Showgrounds 25-27 June 2017, buildnz | designex will be across 4 halls and a massive 12,000m2 of exhibition space making it the largest industry trade event in the country. The 3-day event is also co-located with the National Safety Show; the largest event National of its kind in concentrating on workplace health and safety solutions and education. Buildnz | designex is a trade only event open to all industry professionals and visitors may register to attend for free at www.buildnz.com
COMMENT
Sometimes when you innovate, you make mistakes. It is best to admit them quickly, and get on with improving your other innovations. —Steve Jobs
The Genesis of Kiwi Ingenuity Chris Barclay, Business Development Manager, Motovated Design & Analysis. Many of you reading this would have heard of ‘Number Eight Wire’. A common phrase as familiar as the old kiwi favourite, pavlova. In case you didn’t know, Number 8 Wire is quite literally, a gauge of steel wire, commonly used in rural fencing. That is, fences around paddocks which keep the sheep in, not two blokes in tights fighting each other with floppy swords. The Ol’ Kiwi Way In 1976, New Zealand adopted the metric system and Number 8 Wire officially became 4.0mm gauge wire. Despite this, the tradition of calling it Number 8 still lives on to this day. A simple phrase has grown to represent Kiwi ingenuity and resourcefulness; a can-do attitude and ability to think laterally to solve a problem.
listing the company on the NZ stock exchange; actively defying the myth that New Zealand is not a suitable place for start-ups. Those we celebrate I could continue for weeks about all the different creations that have come out of New Zealand over the last century or more. Nowadays some of them are well celebrated and acknowledged thoroughly. In some instances, the brilliant minds behind such innovation are usually immortalised in film and a bronze statue is cast in their likeness, such as the famous Burt Munro’s ‘World’s Fastest Indian’ erected proudly on the boundary of Queen’s Park in Invercargill.
Perhaps this was borne out of isolation; in the 1800’s England was a long way to travel for spare parts. The early settlers had to adapt and improvise and Number 8 wire was readily available. Out of years of hardship and struggles to make the new country work, grew the myth of the Number 8 Wire mentality; commonly known as Kiwi ingenuity. New Zealanders; particularly the men, are practical, problem-solver types, able to invent, fix and create machinery with basically whatever scraps they have lying around in the garden shed. From this stemmed a long line of New Zealand entrepreneurs, inventors and can-do types who went out and changed the world with their creations. This unique mindset has long offered a competitive advantage to New Zealanders thus far and has seen the success of many Kiwi inventions - the jetboat, electric fence, bungy jumping and even the egg beater. From small beginnings This same mindset is also responsible for launching several hugely successful Kiwi start-ups, such as Xero, who are now a global company with 20 offices and more than 1400 employees. What started out as a product for a handful of local companies has turned into a market leading software, recording over NZD$1 Trillion of transactions in 2016. With small beginnings, Xero spent five years in New Zealand, refining and building its product to become “The Apple of accounting”. With a big picture view from day one, they managed to raise $15 million by
Burt was the quintessential Kiwi inventor, working from and living in his shed to be near his beloved creations. Even the motorbike pistons were hand-cast using sand from local beaches and usually formed in a tin can. They were then painstakingly finished with file and lathe, a true testament to patience and an innate feeling for design. Another prime example of true kiwi ingenuity is Richard Pearse. Today, near the site of his farm outside of Timaru (which is in New Zealand by the way), there is a modest monument beside a green paddock. It is a replica of Pearse’s flying machine, perched atop a pole that is mounted on a simple stone foundation. A small plaque tells the story of what happened there: “This monument commemorates the first powered flight to be made by a British Citizen [which all New Zealanders used to be] in a heavier than air machine. Most evidence indicates this flight took place on 31st March 1903 and ended by crashing on this site.” Pearse was not out to seek fame and glory. He was a humble farmer
and inventor, who was mad enough to attempt flying, using a winged contraption made of bamboo, canvas, tubular steel, and you guessed it, wire. Regardless, he personifies a widespread belief of home-spun innovation, working with restricted resources in a remote part of the planet to create a new and brilliant contraption. The downside? Despite New Zealand’s impressive feats of design, there are some that make the point that we ‘used to be’ an innovative nation. Authors Jon Bridges and David Downs, who in 2014 released their sequel No. 8 Re-wired, following on from their first book No. 8 Wired; make the point that “Kiwis have been resting on their laurels while other countries have cranked up their race up the innovation ladder”. There may be some significant truth behind their statement; New Zealand’s number of triadic patents (a family of patents filed in different countries) filed is significantly lower than Denmark, a country with similar OECD measures to our own. Perhaps this is a reflection of our Gross Domestic spending on Research and Development; NZ’s miserly 1.2% of GDP versus Denmark’s 3.0%. I am no economist but surely there has to be some correlation there? So, what if New Zealand’s attitude towards innovation was to change slightly? In an interview regarding his latest book, Bridges states, “We have a culture where we don’t just do things everyone else does. But in the modern times, as technology goes on and the world changes, that is not enough anymore. It can’t just be one guy in a shed anymore. There needs to be a lot more deep science, deeper research and collaboration to develop a brand new idea”. This point is deeply important. The time of the bloke in the shed has almost come to an end. For New Zealand to compete on the world stage, whether it is software, a simple household product or a portable GPS tracking unit; time and money have to be invested into correctly engineering the product or service for its specified use. Number 8 Wire will simply not
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cut it when up against world class companies that are well funded and have the top engineers and designers. On the other hand The good news is there are people using more than just Number 8 Wire thinking to create world-class innovation. Wellington company, Good Nature have created multi-species, self-resetting kill traps, a game changer for pest control in multiple countries. What started out as a University project is now distributed internationally with skyrocketing success. There are numerous other Kiwi companies like this who are taking a well formed, ingenious solution to a problem, rounding it off with the careful application of design and engineering, and most importantly collaborating with the companies or individuals who have the unique skill sets or processes that are required to see a product succeed.
Maybe New Zealand is lagging behind slightly in the race for innovation. Regardless, I think the Number 8 Wire approach speaks volumes. If we look at our history and the last 150 years it is full of amazing inventions, innovative people and stories of how hardship created opportunity. Ernest Rutherford, Richard Pearse, Burt Munro, John Britten, William Hamilton and countless others. Heroes who had a vision of what they wanted to create and kept striving towards it. One of the best Bruce McLaren was a pioneering spirit with unswerving tenacity and endless passion. An inventor who pushed the limits in every area of his life and applied the Number 8 Wire mindset in the best way possible. McLaren is the untold story of a motor racing icon, directed by Roger Donaldson, the man behind The World’s Fastest Indian. One of New Zealand’s most treasured sons and the father of Britain’s most cherished motor racing empire.
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ADVISORS Mike Shatford is an expert in the field of technology development and commercialisation. His company Design Energy Limited has completed over 100 significant projects in this vein by consulting for and partnering with some of New Zealand’s leading producers. Among Mike and his team’s strengths are industrial robotics and automated production where the company puts much of its focus.
Sandra Lukey
Sandra Lukey is the founder of Shine Group, a consultancy that helps science and technology companies accelerate growth. She is a keen observer of the tech sector and how new developments create opportunity for future business. She has over 20 years’ experience working with companies to boost profile and build influential connections.
Phillip Wilson Chris Whittington
Senior Lecturer at AUT, Chris Whittington is a versatile Engineer, Educator and Researcher. Chris has had many years experience in senior engineering and product management. Chris has a strong background in computational modelling, 3-D scanning and printing, and a strong interest in engineering education.
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Phillip Wilson of Nautech Electronics has over 25 years of experienced in the development, commercialisation and implementation of advanced manufacturing technology, robotics, automation and materials. Serving companies operating within the aerospace, automotive, offshore, defence, medical and scientific industries on a global basis. More recently specialising in change management and business re-alignment for a range of commercial entities from medium sized SME’s to divisions of large corporates.
You didn’t come this far to only come this far. -Anon
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Failure doesn’t mean you are a failure. It just means you haven’t succeeded yet.
—Robert H. Schuller
Servo motor improves machine performance Speed is money, especially for manufacturers with processes, such as converting, printing and web handling. With the new line of Allen Bradley Kinetix VPC servo motors from Rockwell Automation, manufacturers can run machines at higher speeds and higher torque, significantly improving machine throughput. “The Kinetix VPC servo motor provides
high continuous torque at high speeds over long periods of time,” said Gavin Black product managerCompactLogix, Kinetix, SLC & ICM, Rockwell Automation. “Its interior, permanent magnets allow for field weakening, which reduces electromagnetic resistance so a machine can carry loads continuously and well above motor-rated speeds.
This allows manufacturers to keep web lines and winders running at high speeds and constant power.” A cooling fan and cooling fins on the motor provide increased torque and power output. In addition, encoder options with improved resolution and accuracy provide more precise and responsive control, which is especially valuable for the printing industry. The Kinetix VPC servo motor also helps reduce machine downtime in multiple ways. It uses larger, more robust bearings to improve L10 bearing life by up to 60 percent. An optional single cable for power and feedback helps reduce installation, setup and maintenance time compared to dual-cable motors. In addition, a quick-change fan is fieldreplaceable, which helps maintain maximum machine uptime. The new motor line meets or exceeds IE4 efficiency ratings, which can save energy costs compared to using an IE3 or lower-rated motor. When used with the Kinetix 5700
servo drive, the Kinetix VPC servo motor can also help manufacturers use less current than with larger, more energy-intensive motor and drive solutions. Rockwell Automation designed an integrated foot-mount option for the Kinetix VPC motor, which provides an alternative to the traditional, flange-mount method. This is beneficial in many applications where foot mounting is preferred. The Kinetix VPC servo motor is currently designed only for use with the Kinetix 5700 servo drive. Rockwell Automation plans to evaluate functionality with other drives in the future. As part of the Rockwell Automation Integrated Architecture platform, the Kinetix VPC servo motor and Kinetix 5700 drive are programmed using the Rockwell Software Studio 5000 design environment. This integrated design approach can help speed up machine deployments and reduce the likelihood of manual errors.
IoT to shake up manufacturing sector The impact of the Internet of Things (IoT) will be on display at SEMICON Southeast Asia, 25-27 April at SPICE in Penang. The global exhibition and conference is organised by SEMI, the global non-profit association connecting the worldwide electronics manufacturing supply chain. More than 70 industry speakers and 200 companies and 7,500 attendees will participate in SEMICON Southeast Asia. Creating new business opportunities and fostering stronger cross-regional engagement, SEMICON Southeast Asia features a tradeshow exhibition, networking events, market and technology seminars, and conferences. With tens of billions of IoT devices forecasted to be connected to the internet by 2020, the IoT is changing how people work, play, and live. The IoT connects devices to the internet and to each other - from mobile phones, washing machines, lamps, wearable devices through industrial applications on airplanes and oil rigs. Alongside IoT ubiquity, the borders between real and digital worlds are blurring with technologies such as Virtual Reality (VR) and Augmented Reality (AR) becoming part of our
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everyday lives. The enabler for IoT and the new digital world is the vital electronic manufacturing supply chain. SEMICON Southeast Asia will gather over 300 exhibitors, the leaders in manufacturing equipment and materials for semiconductors, MEMS, sensors, LEDs, and flexible hybrid electronics. A special “World of IoT” Futura-X Showcase will highlight system innovations made from the devices of the exhibitors. System innovation exhibitors include: HTC VIVE(TM) virtual reality gaming device; ADAWARP Teleporter for controlling a real-life robotic avatar; and the first Malaysia autonomous vehicle from REKA, an indigenous innovation on converting a traditional automotive to an autonomous vehicle. According to Ng Kai Fai, president of SEMI Southeast Asia, the IoT has already seen a big shift in the interaction between humans and machines, and has brought about significant transformations in manufacturing. “At this year’s SEMICON Southeast Asia (SEA), we feature a ‘World of IoT: Futura-X’ showcase, which will
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feature cutting-edge applications that are fuelling new markets for electronics and connecting the world. Companies will showcase their innovations in an early preview of technologies set to change the manufacturing landscape and consumer demand. This new showcase is validation of the output of SEMICON Southeast Asia’s amazing electronics manufacturing equipment and materials exhibitors,” said Ng. SEMICON Southeast Asia 2017 is the region’s premier event for electronics innovation. With an expanding industry scope ranging from chip manufacturing to system-level integration, it highlights the market and technology trends driving investment and growth in all sectors across the region. The event provides new business opportunities - by reaching buyers, engineers and key decision-makers in the Southeast Asia electronics industry,
including buyers from Malaysia, Singapore, Thailand, Indonesia, the Philippines, and Vietnam. Future Electronics Manufacturing Pavilion - showcasing companies in the Electronic Manufacturing Services, printed circuit board, surface mount technology and electronic design automation sectors Failure Analysis Pavilion - featuring solutions and suppliers focused on maximising throughput, improving yield and increasing reliability in microelectronics manufacturing
If you are not willing to risk the usual, you will have to settle for the ordinary. - Jim Rohn
Connexionz wins contract to manage New York ferry New York commuters eagerly anticipating the launch of the new NYC Ferry operated by Hornblower starting service next month, will be boarding a new transport service integrated with technology developed by Connexionz of Christchurch. The contract, awarded to Connexionz in a competitive international procurement process, commenced roll out in February and will be completed next month, with on-going service and support until 2022. Connexionz specialises in the development and delivery of Real Time Passenger Information (RTPI) and Intelligent Transport Systems (ITS) solutions for managing transport networks - including bus, rail and ferry services, as well as developing solutions for transit infrastructure, including terminal and garage management systems. Connexionz solutions are highly regarded for their reliability and accuracy. Paul Lambson, Head of Customer Success at NYC Ferry says, “We chose Connexionz because of the quality of their technology, capability, and proven performance. And we were impressed with the team’s considerable integration expertise, support, and experience. Overall, Connexionz presented the most convincing and cost-effective proposal.” Hornblower will manage a of six routes over 60 nautical of waterways, connecting Yorkers and visitors to the
total miles New City’s
waterfront communities – including neighbourhoods, job centres, and parks. Scheduled to commence on May 1st, 2017, the new NYC Ferry operated by Hornblower will offer an efficient and affordable way for people to travel between waterfront communities throughout New York City. Amongst its customers, Connexionz technology also manages the city bus network and Blackcat ferries in Christchurch, New Zealand, as well as bus and rail services throughout the U.S. Connexionz will install and manage new highly accurate laser-based passenger counting systems, a range of on-board real time service displays, and passenger “infotainment” services for New York’s new Ferry System. Behind the scenes, Connexionz software will integrate with the vessel engines to manage and monitor engine parameters, such as fuel flow, maintenance schedules and hours of service. In addition, smart data reporting will help Hornblower with fleet maintenance and tracking and service analysis, including on-time performance. Rhod Pickavance, CEO of Connexionz says, “Since the early 1990’s, we’ve been developing smart transport solutions and our expertise is second to none in transit technologies, communications systems (fixed and wireless), systems integration, consultancy services and transit terminal and exchange technology design. We are very
excited to have been awarded the NYC Ferry contract, and to help them provide a quality customer experience, while ensuring optimal maintenance and performance their fleet.” The solution is based on Connexionz’ TransitManager ITS suite and involves considerable integration with customer specific applications and services. To manage this project, Connexionz has expanded its software development team at its headquarters in Christchurch, New Zealand.
Connexionz international headquarters is based in Christchurch, New Zealand, with regional North American service offices in California and Virginia. www.connexionz.us
“Our system will initially look after Hornblower’s 20 ferries. We’ll also be installing our equipment on shuttle buses that will take commuters to and from the several ferry terminals throughout Manhattan and Queens,” says Pickavance.
Hornblower Co. is the parent company of Hornblower Cruises & Events, Alcatraz Cruises, Statue Cruises, Hornblower Niagara Cruises, Liberty Landing Ferry and HMS Global Maritime. Hornblower is a leader in maritime service and hospitality for over 35 years with over 100 vessels in its fleet. H
Connexionz, established in 1996, specialises in delivering applications and services to transit agencies, and provides consultancy services for intelligent transit related projects.
Hornblower’s newest operation, NYC Ferry Operated by Hornblower is the newest way for New Yorkers and visitors to “Work Live and Play” when the system launches in Summer 2017.
These include designing systems for ‘smart’ transit centres and application specific hardware design, development and manufacturing services. To date, the company has delivered systems in Asia, Australasia, Europe, South America, and North America.
Expected to service over 4.6 million passenger trips per year, Citywide Ferry will provide critical transportation links for areas currently underserved by transit and connect them to job centers, tech hubs and schools in New York City. www.hornblower.com
Design Energy Specialists in Industrial Automation Giving local manufacturers a globally competitive edge
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The way to get things done is not to mind who gets the credit for doing them. —Benjamin Jowett
Video fingerprinting for border control results in award Innovative research on video fingerprinting for border control scanning has resulted in a $25,000 KiwiNet grant for Victoria University of Wellington research scientist Dr Nick Monahan. The grant from the KiwiNet Emerging Innovator Fund, to help nurture innovative new ideas from scientists and support early stage prototype and market development, is one of fifteen made possible by donations from the Norman F. B. Barry Foundation. The grant is enabling Dr Monahan, with a PhD in ultrafast spectroscopy, to develop a prototype handheld device that can rapidly scan passengers and other items in real time to identify prohibited items. “Our scanning technology uses compact low powered lasers to leverage a portion of the electromagnetic spectrum known as terahertz (THz) radiation to generate ‘fingerprints’. These allow border authorities to identify organic substances that X-rays cannot,” he says. Dr James Hutchinson, CEO of KiwiNet says, “The increased volume of international passengers, mail and cargo moving between borders presents challenges for border authorities, and creates an opportunity to streamline the border security process with new innovative technology. We’re pleased to support Dr Monahan’s quest to solve this significant industry challenge.” According to Dr Monahan, existing scanning equipment used for border control is both large and expensive. “The goal is to make video camera
technology that uses terahertz radiation, which in this case, is a bit like X-rays in that it can see through packaging and bags to identify prohibited items. The pixels in the terahertz pictures and videos we generate contain fingerprints that record how a material absorbs different wavelengths in the THz spectrum.” Dr Monahan is building a fingerprinting database to identify small carbon based molecules found in prohibited pharmaceuticals and explosives. The database will be tailored to meet the needs of different border authorities and trigger alerts when target items are scanned. Dr Monahan says the fingerprinting is incredibly powerful when combined with imaging. “When we scan a dry bag with items in it that absorbs a lot of THz radiation it might mean that it contains fruit or vegetables. If it contains an orange, then an image of the bag will show a circular area of strong THz absorption signalling to border control staff that a bag, parcel or person needs to be inspected more closely.” Associate Professor Justin Hodgkiss, Principal Investigator of the Ultrafast Laser Spectroscopy Group at Victoria University of Wellington, says, “Spectral imaging in real time is very difficult: it requires extracting a lot of information from a very weak signal. Dr Monahan’s technology is quicker at detection without compromising sensitivity.” Dr Anne Barnett, General Manager of Commercialisation at Viclink,
Dr. Nick Monahan.
Victoria University of Wellington’s commercialisation office, nominated Dr Monahan to receive KiwiNet Emerging Innovator funding, and Viclink is continuing to provide commercialisation support. Ministry for Primary Industries (MPI) was also identified as an ideal proof of concept industry partner. Dr Desi Ramoo, Research and Innovation Practise Lead at MPI says, “MPI’s support for Dr Monahan’s prototyping demonstrates our desire to provide MPI staff with world leading technology developed by New Zealand’s innovative science community. We’ve identified a range of substances that we’re interested in for Dr Monahan to fingerprint. We’ve also highlighted real world applications so his prototype can better meet the needs of both our border authority and others around the world.”
The project additionally received $25,000 KiwiNet PreSeed funding and matching funding from Viclink. This was combined with funding from MPI in order to extend the length of the project and enable the development of a more robust prototype. The KiwiNet Emerging Innovator Fund is available to early career researchers based at universities and Crown Research Institutes across New Zealand. The fund is designed to boost research with a commercial application at a critical time. It also enables researchers to partner with a business and refine their project for market. Recipients also receive expert legal advice from KiwiNet (www.kiwinet. org.nz) corporate partners, MinterEllisonRuddWatts and IP advice from Baldwins.
ThingWorx ThingWorx has been purpose-built from the ground up for the Internet of Things.
It contains the most complete set of integrated IoT-specific development tools and capabilities available, offering the industry’s deepest
functional capabilities. ThingWorx makes it easy to develop and deliver powerful Enterprise IoT
solutions that deliver transformative business value. The extensive ecosystem of ThingWorx partners exists to create and extend smart, connected capabilities to all things for all industries. The economic impact that the Internet of Things will have on product makers, factories, and other complex systems such as smart cities is projected by McKinsey to reach $11.1 trillion a year by 2025. To capture this value, IoT solutions will be formed of many parts and players, from sensor and hardware providers, to independent software vendors (ISVs) and System Integrators. ThingWorx provides the technology foundation to organisations to capture real value that will transform the way they compete, and the way they work.
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Hire character. Train skill. —Peter Schutz
SnapLogic unveils “self-driving” technology to automate integration SnapLogic has introduced industry-first technology that applies machine learning to enterprise integration -dramatically changing the economics of cloud, analytics, and digital transformation initiatives. The new technology, named Iris, uses artificial intelligence to automate highly repetitive development tasks, eliminating integration backlogs that stifle most technology initiatives. Iris uses advanced algorithms to learn from millions of metadata elements and billions of data flows via the SnapLogic Enterprise Integration Cloud. It applies that learning to deliver expert step-by-step guidance, improving the speed and quality of integrations across data, applications, and business processes. The “self-driving” software thus shortens the learning curve for line-of-business users to manage their own data flows, while freeing up technology teams for higher-value design and deployment needs. “Digital transformation shouldn’t depend on manual labour,” said Gaurav Dhillon, founder and CEO of SnapLogic. “The ancient pharaohs built the pyramids with manual labor, but there’s a better way to manage business automation and analytics. Starting today, the smart way to integrate data, applications and things will be autonomous -- blending the best of machine and human intelligence. Opinion Manufacturing Profiles Letters to the Editor Politics of Manufacturing Trade Fair World Diary of Events World Market Report Q/A Export News Machine Tools Business Opportunities Commentary As I See It Business News Appointments Around New Zealand Australian Report New to the Market Lean Manufacturing Equipment for Sale Recruitment Environmental Technology Manufacturing Processes
The days of simply throwing more developers at the problem are coming to a close.”
To keep up with the accelerating rate at which data and analytics are evolving, organisations need solutions that replace manual labour with automated intelligence. Iris extends the company’s vision for self-service integration, and will fuel a series of technology innovations that SnapLogic plans to deliver over the next two to three years based on its Enterprise Integration Cloud. The first Iris-based feature is SnapLogic Integration Assistant, a recommendation engine that uses machine intelligence to give business users and analysts the right next steps in building data pipelines. Integration Assistant will be available in May and is available to all customers at no charge.
The technology behind Iris was developed over the past two years by SnapLogic Labs, led by Dr. Greg Benson, SnapLogic’s chief scientist and a professor at the University of San Francisco. Iris takes advantage of SnapLogic’s unique cloud-native system and metadata architecture, allowing Iris to do the data science needed to find patterns and features that can be used to train machine learning models. Iris thus learns from data flows, integration paths, and patterns across SnapLogic’s platform, determining what’s popular, what works, and what doesn’t work. It then translates that learning into specific recommendations for line-of-business and IT managers, so they can save time and reduce errors while applying best practices. Companies can’t innovate and transform their businesses if they’re bogged down in rote, repetitive tasks that don’t do much for the organisation. Machine learning is emerging as the engine behind human augmentation. These next-generation systems will harness the computing power and data scale of the cloud to automate routine work, so humans can
concentrate on innovating and driving better business outcomes. SnapLogic’s Enterprise Integration Cloud accelerates data and process flow across cloud and on-premises applications, data warehouses, big data streams, and IoT deployments. Unlike traditional integration software that requires painstaking, hand-crafted coding by teams of developers, SnapLogic makes it fast and easy to create scalable data pipelines that get the right data to the right people at the right time. Codeless integration eliminates “technical debt” while enabling analysts, data scientists, and business users to create integrations in hours using visual drag-and-drop software. Under the hood, SnapLogic’s powerful data streaming architecture delivers real-time processing with high throughput for faster data movement across the enterprise. To keep up with the accelerating rate at which data and analytics are evolving, organisations need solutions that replace manual labour with automated intelligence.
NZ MANUFACTURER • May 2017 Issue • Features
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FOOD MANUFACTURING
Once you free yourself from the need for perfect acceptance, it’s a lot easier to launch work that matters.
—Seth Godin
Methane from food production wildcard in combating climate change BY ROB JORDAN,STANFORD WOODS INSTITUTE FOR THE ENVIRONMENT
Cattle, which emit methane through bodily functions and manure, are among the reasons agriculture is the largest contributor to global methane emissions, according to a new study. Credit: Rob Jackson A major opportunity for avoiding climate change’s worst impacts lies in reducing methane emissions, particularly from food production, according to a pair of new studies. The parallel papers, published in the journals Earth System Science Data and Environmental Research Letters, report that emissions of methane have jumped dramatically in recent years and are approaching an internationally recognised worst-case scenario for greenhouse gas emissions. Unchecked, this increase could see temperatures rise as much as 6 degrees Fahrenheit (4 degrees Celsius), speeding sea level rise and more extreme weather. The papers also lay out recommendations for curbing methane emissions in the future, with a focus on food production, which makes up about one third of total man-made emissions. The papers were co-authored by Rob Jackson, chair of Stanford’s Earth System Science
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Department and head of the Global Carbon Project, which organised the work.
through bodily functions and manure, and rice fields, which emit methane when flooded.
The alarming increase in methane draws attention to managing those emissions for climate change mitigation. While most mitigation efforts have focused on carbon dioxide, the more common greenhouse gas, methane’s warming potential is about 28 times greater on a 100-year horizon, and its lifespan in the atmosphere is much shorter.
People are responsible for 60 percent of all methane emissions globally.
In other words, it can do major damage, but getting it under control could tip the climate change equation relatively rapidly. “Methane presents the best opportunity to slow climate change quickly,” said Jackson. “Carbon dioxide has a longer reach, but methane strikes faster.”
Surprising findings The paper’s findings are particularly surprising because methane concentrations were stagnant for years up until a decade ago. And unlike carbon dioxide, the bulk of methane emissions are human-driven. Chief among those, according to the analysis, are agricultural sources such as livestock, which emit methane
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The study’s authors see rising fossil fuel emissions playing a secondary role compared to agriculture for the global methane increase. There is a lesson to learn, Jackson said. “The fossil fuel industry has received most of the attention in recent years. Agricultural emissions need similar scrutiny.”
Reducing uncertainties Natural sources of methane, which account for 40 percent of all methane emissions, are more uncertain than human-driven ones. Examples include methane leaking out of natural faults and seeping on the ocean floor, and the potential for increased emissions as permafrost warms. Another research area includes studying the short-lived radicals that destroy methane in the atmosphere. Because of the evolving nature of this knowledge, the international group of scientists behind the study plans to update the methane budget every two years. The effort is under the umbrella of the
Global Carbon Project, an initiative headed by Jackson that releases an annual global carbon budget. The group’s most recent carbon budget shows concentrations of carbon dioxide have been largely flat for the past three years – a finding that reinforces the importance of methane management.
Working toward solutions To resolve discrepancies on the magnitude of emissions and regional trends, Jackson and his co-authors recommend more accurate partitioning of methane emissions and sinks by region and process and more interactions among scientific groups developing emissions inventories. Possible solutions for agriculture include breeding rice to require less flooding, altering feed for livestock to lessen intestinal processes that create methane, promoting less meat-intensive diets and deploying more farm bio-digesters. Opportunities in other areas include venting and flaring of methane in coal mines, detecting and removing natural gas leaks from oil and gas drilling operations and covering landfills to capture methane emissions.
FOOD MANUFACTURING
The most valuable thing you can make is a mistake— you can’t learn anything from being perfect. —Adam Osborne
Hivemind crowdfunds affordable bee surveillance technology New Zealand’s smart hive innovation company, Hivemind, is launching a crowdfunding campaign on Indiegogo to help beekeepers check their hives remotely, and take proactive action to keep their bees safe and happy. The “Hive Strength Monitor with WiFi” campaign aims to develop and commercialise an affordable and accessible WiFi version of Hivemind’s flagship satellite-based Hive Strength Monitor for all beekeepers. It is targeted at responsible beekeepers, commercial pollinators, and honey lovers alike around the world who are committed to keeping all bee colonies happy and strong. Remote bee monitoring saves bees The benefit of the new Hive Strength Monitor with WiFi and Smartphone App is the ability for beekeepers to see from their mobile device that their bees are happy and busy doing what they should be doing - pollination and honey. The system comes with sensors and remote monitoring software that measures bee activity and hive conditions, and alerts beekeepers of changes in, humidity, temperature, and bee numbers. With the hives connected to their own
WiFi network, beekeepers can open their Hivemind app to quickly assess the condition and wellbeing of their hives. Large-scale deployments can also install a WiFi hotspot to provide intensive hive monitoring at minimal monthly fees. “Our Hive Strength Monitor can also help beekeepers pick up any early signs of trouble and to act quickly to prevent or minimise both loss of their bees and potential spread of disease,” says Hivemind Director, Berwyn Hoyt. “Any sudden changes in activity or temperature could mean the bees are swarming, or dying off due to disease or hunger, or that the honey from the hives is being robbed by wasps. Hivemind data alerts can allow beekeepers to proactively assess the situation and mitigate any risk to their hives quickly.” After two years in development, the launch of Hivemind’s maiden satellite model designed for commercial bee pollinators and manuka honey producers, was partly funded by the New Zealand Government’s Callaghan Innovation Today, there are close to 300 commercial Hivemind installations across New Zealand, Australia and the US, with customers reporting increases in their honey yields by as much as
18%. Mike Everly at Forest & Bees Native Honey was one of Hivemind’s early adopters. He explains, “Our manuka honey hives are placed in very remote sites in New Zealand, many accessible only by helicopter. Knowing what is happening through the season is critical to decisions about if and when we may need to add boxes, and when we need to harvest. Using this data, we selectively check on areas and make much better management decisions. I could not be happier with the data and information the Hivemind system provides.”
Keeping bees happy The importance of the role bees play in the survival of our planet can’t be understated. Pest invasions, diseases, fungi, pesticides, overcrowding, and diminishing food sources are contributing to poor hive health, swarming, and colony collapse. “Keeping bees happy has become a primary environmental concern where technology can play a significant role,” says Hoyt. “With better understanding of bee behaviour and hive conditions, beekeepers and commercial pollinators can potentially prevent swarms, dying colonies, and the spread of disease by mitigating risks early.”
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“We hope that with enough support, our WiFi enabled Hive Strength Monitor and smartphone app can help beekeepers worldwide to better understand and optimise the condition, health and yield of their managed honey bee colonies,” says Hoyt. “The United States market in particular has a large pollination industry, which has recently been troubled by disease and Colony Collapse Disorder.” Hivemind’s crowd funding campaign is now live on Indiegogo: http:// hivemind.co.nz/hive-monitor
Thank you for your support! *Hivemind is an apiculture innovation company established in Christchurch New Zealand in 2012 by brothers Berwyn, Ben and Bryan Hoyt. The Hivemind Scales and Hive Strength Monitor are the company’s flagship products launched in 2014. Since then, close to 300 Hivemind Hive Strength monitor systems have sold to commercial beekeepers and pollinators across New Zealand, Australia, and more recently, the United States. Hivemind’s smart hive technology achieved finalist recognition for innovation in the both the 2016 NZ Hi Tech Awards and the 2016 NZ Innovation Awards. Visit www. hivemind.co.nz
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NEW PRODUCTS
Employees make the best dates. You don’t have to pick them up and they’re always tax-deductible. —Andy Warhol
Modular surge protection device for process reliability Power management company Eaton delivers higher levels of surge protection with the launch of a modular device range designed for easy installation, commissioning and replacement. Eaton’s new MTL SD Modular range provides comprehensive protection from transient surge events up to 20 kA, the highest level of protection currently available for a modular pluggable device which is coupled with the highest packing density on the market.
retention tag and can be removed from its base without de-energising the protected device, saving the user valuable time and complexity. This is achieved using an innovative ‘make before break’ design to ensure uninterrupted loop operation during replacement. Additionally, the slim-line footprint of the surge module increases the packing density, resulting in saving both space and cost, which potentially reduces the number of cabinets needed.
With over 50 per cent of premature electronic equipment failures being attributed to surge and maintenance failures, Eaton’s MTL SD Modular range offers complete cost-effective surge protection to valuable instruments and distributed control systems.
A diagnostic LED option is available to provide a clear, visual indication of a failed module so that engineers can immediately see which module to replace. A portable surge test device is also available, allowing users to simply check the health of each module during routine maintenance.
The design of the MTL SD modular device reduces maintenance cost and downtime, as modules can be quickly and easily replaced. The pluggable part is held in place with a simple
This new modular range inherits the proven reliability of the MTL SD range, increasing system availability in a wide range of industries including oil and gas, chemical, power and water/
wastewater. With versions available for all process signal types, they are ideal for panel builders, system integrators and engineers looking to protect electrical and electronic assets. The range is fully ATEX/IECEx certified for use in intrinsically safe applications, is SIL suitable and is designed to meet global standards. For further information please visit: www.mtl-inst. com/sdm
Barrier system safe, efficient and reusable Australian company SafetyMITS has released an ultra-portable barrier system offering safety, efficiency and reusability. The innovative Rapid Roll Barrier Storage Cartridge and Rapid Post system is designed for a wide range of industries including mining, building, construction and manufacturing, as well as being ideal for council, emergency and general maintenance workers. Safe and sturdy, the fully integrated Rapid Roll barrier system quickly creates a clearly defined protective zone that keeps workers and the general public protected. In fact, creating a clearly defined
worksite perimeter has never been easier or quicker to assemble. The Rapid Roll barrier system offers fast, trouble-free site securement leading to less set up time and more efficient work time. Set up and take down of the barrier system can be done safely by just one worker in a matter of minutes. Yet the result is a clearly defined zone that prevents entry by those who might want to duck under or climb over the barrier. This provides workers with peace of mind knowing they can safely perform their task in a secure area. This includes overhead workers using cherry pickers or high platforms, with the Rapid Roll barrier system keeping the public safe below their work zone. And when the job is finished, retracting the barrier system is just as easy as setting up. The worker simply cranks the handle and the barrier fencing neatly rolls back into the main cartridge. To see just how straightforward the Rapid Roll barrier system is to set up and take down, simply go to www.youtube.com/ watch?v=Pr03Si2SSBs. Safety was the company’s
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number one objective when they were creating this remarkable new temporary barrier system. The result is a revolution in worksite safety and convenience. Because Rapid Roll barriers cannot be walked through, THE system is far safer for the general public than pylons and caution tape. They create an easily seen visual barrier that is 145cm high, and both sturdy and portable. As well, reflective safety tape is fitted to both sides of the cartridge and posts, making it easily visible in low light environments. Portability is another of the key features of the Rapid Roll barrier system, being easy to carry and worksite-durable. It is the quickest, most portable barrier fencing system on the market, being ready to roll out straight from the cartridge. With 15m of fencing option, the portable barrier system is highly adaptable, and can be used in a straight line, as a full enclosure or two or three sided. For larger areas, the barrier system can be simply connected in multiple units while maintaining the fast, simple approach to portability and set up. Weighing just 12.7kg, the Rapid Roll barrier system can be easily carried and assembled by one worker in a matter
of minutes. In addition to the standard 3-legged system, a wheeled system is also available, capable of carrying four posts and bases for larger applications. Moulded with tough, resilient MDPE, the barrier system is designed to stand up to all the rigours a worksite and extreme weather conditions can throw at it. Other key features of the Rapid Roll barrier system include its reusability and thoughtful technology involved. Durable and rugged, the system can be used repeatedly, making cost per use easily affordable. The Rapid Roll barrier system is both reliable and better for the environment than some other temporary barrier fencing options. And because it can be used repeatedly, the barrier system is a greener alternative to traditional fencing, which typically requires twist ties or other disposable fasteners in order to secure the fencing. As well, traditional fencing often needs to be replaced due to damage in transport. Designed for ease of use and efficiency, smart features like comfortable carrying handles double as Rapid Links when the unit is in use. And when not in use, Rapid Roll is fully protected and neatly rolled up in the cartridge.
Independence and Focus: Hell, there are no rules here—we’re trying to accomplish something. —Thomas A. Edison
NEW PRODUCTS
Australia’s first certified flame-retardant polyurea coating The economic impact of corrosion is often exacerbated in harsh climatic environments and in workplaces with heavy traffic wear from operation of large vehicles and equipment. Excessive moisture, heat and abrasion can accelerate the deterioration of machinery, vehicles and assets. Applying a protective surface coating is one way of minimising or reducing the effect. One coating material for harsh conditions—including those in a combat zone—supplied by Rhino Linings Australia (RLA) is Rhino Extreme 11-50 FR. While the material has been available for several years, it was only late in 2016 that the fire resistant nature of the product received certification. RLA’s Technical Manager, Robert Idzes, said “The formal certification of Rhino Extreme 11-50 FR has opened up a range of new opportunities for industrial and commercial applications of the product.” The spray-applied pure polyurea is suitable for any application, such as a fuel bund—secondary containment area—that requires a fire resistant surface. Historically, bunds have been constructed of concrete or brick, but in recent years have been coated with a spray-applied pure polyurea or welded plastic liner to prevent leaks. Fire is a potential hazard if a leak does occur, especially where fuel, sodium hydroxide, sulphuric acid and other highly flammable materials are stored. The flame resistant properties of Rhino Extreme 11-50 FR significantly reduces the burn rate allowing safety officers and staff time to extinguish the flames before major damage is caused to the liner or catastrophic failure occurs. “The Rhino Extreme 11-50 FR is the latest Flame Retardant product to meet US Federal Aviation Regulation 25 (FAR 25) Flammability testing for aircraft,” said Denis Baker, Special Projects Engineer at RLA. “In addition, it also meets UL 94, which is another high standard at the moment for coatings.” The FAR 25.853 tests the self-extinguishing performance of materials under fire conditions. In addition, due its excellent blast mitigation properties—arising from the high tensile and elastic elongation properties of the Rhino Extreme polyurea which enable it to contain and minimise shrapnel damage— the product can be used for military applications. Barracks, tactical vehicles, temporary structures and buildings can be protected from damage. It can also be used on vehicles and equipment requiring abrasion, corrosion and impact protection and
when applied with a textured finish (R10 dry slip resistant rating) it is ideal for foot traffic areas requiring a non-slip surface. Mixed in a 1:1 ratio, the material is a two-part, flame retardant, elastomeric, polyurea. The product’s flame resistance makes it an ideal coating for numerous applications that require a flammability rating, all the more important as fire regulations become more stringent. However, due to the range of substrates—metals, wood, concrete, fibreglass, geotextiles and most plastics—to which the Rhino Extreme polyurea can be applied and the numerous flammability ratings, RLA recommends that testing, certification and approval be considered prior to any application of a coating.
up, making 11-50 FR an ideal material to use. Applied to an appropriate thickness, the polyurea coating can withstand tracked vehicle traffic, forklift operations and heavy loads and reduces noise from vibration and impact. However, Idzes added that because of the range of substrates, customers should test a small section to determine the suitability of these products for their own particular application.
RLA produces a range of spray-applied polymer surface treatments that are able to meet the demands of the variable Australian climate combined with the often harsh working environments of construction sites, oil rigs and remote Australian mining facilities. According to Peter Morgan, General Manager of RLA, despite challenging economic conditions, his company has experienced strong growth throughout Australasia.
How much flame retardence provided is dependent upon the substrate being coated and the polyurea’s thickness and density. Spray application means that a monolithic, seamless lining is created that conforms to any shape and size. In a refinery, concrete flooring was sufficient in the past but many now require easy to clean, seamless leak proof floors to minimise dust build
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ANALYSIS
Vision: The entrepreneur always searches for change, responds to it, and exploits it as an opportunity. —Peter Drucker
Introducing
A point of difference in today’s busy FMCG market.
Developed by AsureQuality, inSight™ provides shoppers with independently verified information about the products they are about to buy. After a successful application process, producers can place the inSight™ logo and a QR code on their product packaging.
When shoppers scan the QR code at the point of sale they can access information about the product, including: • • • • •
Environmental sustainability Social and ethical concerns Nutritional information Safety and quality Origin
Why the Need for inSight™? inSight™ takes product assurances into the 21st century inSight™ is a new brand developed by New Zealand Government owned AsureQuality, global experts in food safety and quality. We know how important food safety and quality is to you. We wanted a way that you could get independently verified information about a product, that would give you confidence in it before paying for it. inSight™ makes sense because: • You want to know more about the food you are eating
A new innovation taking product assurances into the 21st Century
Freephone 0508 00 11 22 | www.aqinsight.com
Smart factory market In 2016, the global smart factory market was evaluated at USD 120.98 billion, and is estimated to reach USD 205.42 billion by the end of 2022, thereby registering at a substantial CAGR of 9.3% during the forecast period. The several credits for this growth are evolution of Internet of Things (IoT), escalation in adoption of industrial robots, increase in prominence on regulatory compliances, and growth in need for smart automation solutions. Increasing demand for enhanced efficiency along with energy saving in the manufacturing procedures, accounts for the lucrative growth of this market during the forecast period. Many enhancements in technology such as machine to machine communication let smart factories to diminish time wastage caused due to the impediment in the process alteration. Nevertheless, there are few factors that act as a hindrance to this industry’s market growth such as lack of interoperability issues and standardisation. Such factors heave concerns in fabricating incorporated solutions with the help of components rendered by many automation solution providers. Lack of skilled workers and elevating skill gap further restricts the growth of the smart factory market. Additionally, many other vital factors like associated costs and cyber security threats curtail the growth of the global smart factory market, especially in industries such as weapons, nuclear and armaments.
The allure of authenticity Authenticity never goes out of style. Among the most lucrative words used by sellers on eBay in 2016, authenticity was the most prolific. In a technologically infused world of mass production, people are becoming allergic to consumer experiences that would leave them feeling as if they too have been put on the assembly line. Especially when 3D printing is rewriting the rules of supply and demand and putting the power of production in the hands of the consumer, people
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are seeking products that are original, even idiosyncratic, with their own peculiar story to tell. Having fallen on hard times from the influx of Chinese cheap goods into global markets, the industrial heartland of northeastern Italy has managed to rise above the rubble with traditional artisanry reimagined. Craftsmen are applying rapid prototyping and other digital technologies to offer online buyers custom-made, local designs and
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innovations. Where Italian demands wane, third-generation cobblers, for example, can use the connecting power of the Internet and expand their shoe shop beyond physical market borders through 3D laser foot scanners. Foot measurements are able to be taken from anywhere with this technology, opening up the possibility for indigenous companies to run with the big boy multinationals. With a 3.5% increase in exports that
continues to rise, this web of small industries is illustrating the fact that a digital economy can ballast time-honoured artistry and reinvent fresh pockets of consumerism. The connecting power of the internet has opened the possibility of these craftsmen winning not only the minds but also the hearts of their consumers through sharing their origin story and beliefs. As one provincial designer reminds us: “Even when you do something with new technology, you
COMMENT
The secret of business is to know something that nobody else knows. —Aristotle Onassis
Time to focus on the Health in OH & S By Mark Champion, General Manager Advocacy and Industry Relations, EMA About 1500 metres into a hillside on the West Coast northeast of Greymouth, at 3.44pm on the afternoon of November 19, 2010, a methane explosion, followed by a series of other blasts, took the lives of 29 miners. The tragedy has forever changed the lives of the families and communities of those miners, but as a result of those deaths there is now a legacy the tragedy has forever changed the landscape of Health and Safety practise in New Zealand. In the same month as the deaths of the 29, Prime Minister of the day, John Key announced the Government would conduct a Royal Commission of Inquiry – a tool rarely used, but generally aimed at delivering fundamental change. The Commission’s final report was released nearly two years after the tragedy, in November 2012. It found the disaster was a preventable tragedy, and whilst it could not pinpoint the actual cause of a series of explosions, it slammed the mine’s management for not properly assessing health and safety risks its workforce was facing. And it highlighted the Department of Labour’s parlous record as the former regulators of health and safety in New Zealand. The lawyer representing the dead miners’ families said the tragedy was also a result of the failure in the way the legislation had been applied and a failure of the Department of Labour in its inspectorate role. The report found the mine’s board of directors ignored health and safety risks and should have closed the mine until they were properly managed. The Government moved quickly: • The work of the Department of Labour was transferred to the then new Ministry of Business, Innovation and Employment. • A dedicated inspectorate for high-hazard industries, mining and petroleum was quickly established Other recommendations from the Commission included: can’t forget the aesthetics of the past.” Aligning to emotionalism According to the Harvard Business Review (HBR), the role of emotions in determining consumer behaviour cannot be underestimated. Given their ability to sway spending, companies must pursue a strategy and science around how to develop emotional connections in the marketplace. It’s
• A new regulatory crown agency be established with a chief executive and board to reflect that health and safety was a responsibility of employers, workers and government. • Establishment of an expert taskforce to create a regulatory framework for underground coal mining. • Collaboration between regulators to ensure health and safety is considered before permits are issued • Crown Minerals regime changed to ensure that health and safety became an integral part of permit allocation and monitoring • Statutory responsibility of company directors for health and safety in the workplace to be reviewed to better reflect their governance responsibilities • An urgent review of emergency management in underground coalmines • Requirement that underground coal mines have modern equipment for emergencies The next step in the change cycle was the establishment of the Independent Taskforce on Workplace Health and Safety in 2012, tasked with the evaluation of whether the workplace and safety system in New Zealand was fit for purpose, and to recommend practical strategies to reduce the high rate of workplace fatalities and serious injuries by 2020.
Important for many reasons, but from an employers’ perspective, critical to being able to fill a huge projected skills shortage. After 10 months of consultation, analysis and research, the Taskforce delivered its report to the Minister of not an exact science, as very often customers’ own desires are deeply subconscious. However, through big data analysis, companies are able to identify and tap into the emotional motivators that drive profitable behaviour. When brands project visceral connections such as ‘feeling a sense of belonging’, ‘feeling secure’, and ‘having confidence
Labour, Hon Simon Bridges on 30 April 2013. The Taskforce report said there was no single critical factor behind New Zealand’s poor health and safety record. Rather, New Zealand’s workplace health and safety system had a number of significant weaknesses that needed to be addressed if New Zealand was to achieve a major step-change in workplace health and safety performance. In other words the system was broken and workers were dying as a result. A sea change was required, where a climate of collective responsibility needed to be developed between government, employers and workers. The goal was to reduce New Zealand’s workplace injury and death toll by 25 percent by 2020, with the final vehicle for change being the passage of the Health and Safety at Work Act last year. The Act’s key emphasis? Health and safety is a responsibility for everyone in a workplace. That realignment and shift to collective responsibility now has the critical building blocks in place and it’s time to turn our minds and efforts to health in the workplace – the other component of the health and safety double billing. The Advocacy team of the EMA, led by Paul Jarvie (who led our responses and contributions on the safety changes), is now turning its attentions to health as the next important driver of prosperity and workforce participation. And there are two big strands of work on the boil. The first is helping employers achieve a healthier workforce. Why? Current research tells us the cost of ill health to the country and to business is 10 times that of the cost of workplace injury and death. Those numbers got our attention too!
workforce. Our Members with large work forces will be hearing from us soon on how to be a part of a far reaching survey on workplace Wellness. We will be rolling out the results across our region through our normal communications channels, but also through road shows around the major centres in our region north of Taupo. The second stream of work is around our ageing workforce. By the year 2068, there will be 400,000 or 29 percent of workers over the age of 65, compared to just seven percent now – four times as many. We are going to have to move quickly to figure out how to keep their skills up to speed and how to help keep them healthy enough to work. This makes the discovery of workplace trends, like those that will be thrown up by the Southern Cross Wellness Survey, critical to building the big picture of health and wellness in the workplace. In addition, we are working with Southern Cross and players like the Retirement Commission, MBIE, and the Ministry of Social Development to help define how health and the ageing work force can be better understood in order to deliver employers the programmes and solutions they need to meet the challenge. Important for many reasons, but from an employers’ perspective, critical to being able to fill a huge projected skills shortage.
We have teamed up with the country’s biggest private health care provider and insurer, Southern Cross, to talk to members about the health of their workforce and what measures are needed and are possible to create a healthier and more productive
In short, it’s not long before we will begin to rely on our older workers to continue to work productively and we will need them healthy if we are to mitigate this perfect storm on the international horizon.
in the future’, customers are more apt to align their spending accordingly.
HBR would describe it as ‘full emotional
So, when Nescafe aligns the image of a steaming mug to a man who overcomes his disability with humour and courage, we are moved. A cup of coffee has become a symbol of faithfulness and reliability ‒ a friend who remained in the palm of the struggling protagonist until the end.
‘emotional connection pathway’ that
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connection’ ‒ the culmination of the customers undergo throughout the brand
positioning
and
marketing
process. Interestingly, the difference in value ratio between a customer who just loves the coffee and a customer who feels emotionally connected to the brand is 52%.
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REAR VIEW
If one does not know to which port one is sailing, no wind is favourable. —Lucius Annaeus Seneca
Bringing greater certainty to an uncertain world - Simon van Wyk, Aurecon’s Risk Uncertainty Leader. Modern day risk analyst, statistician and essayist Nassim Nicholas Taleb, believes that in today’s evolving world, uncertainty is rising with increasing severity. Because rare events are impossible to predict, he argues that we need to make peace with uncertainty and reduce our negative exposure. Yet ‘uncertainty’ remains one of the most prevalent issues in the lives of many people. Whether related to the global economy or geopolitics – or something far more trivial – we are surrounded by talk of uncertainty. So, what does the acceptance of uncertainty mean to business owners, governments, insurance agencies and the general public? “Most people don’t want to deal with it; or are scared of it. However, it is an unavoidable issue we engineers have to deal with in our wide-ranging work. Should we recalibrate our design criteria because ‘one in a hundred year events’ might now happen once a decade?” asks Van Wyk. Making peace with uncertainty In the world of science, the Heisenberg uncertainty principle states that both the position and velocity of an object cannot be measured precisely at the same time. Indeed, the more precise the determination of an object’s position, the less precisely its momentum can be determined ̶ and vice versa. While this complex principle relates to quantum physics, it holds many important lessons for engineers, the most important of which is accepting that uncertainty is an ever-present. This is at the heart of what we do in risk advisory at Aurecon. We strive for a world in which unknowns can be identified, assessed and evaluated. Then with this information we can help clients improve their end product – whether that’s a process or facility or some other project.
Managing risk is about leveraging predictive capabilities that extend to the unknown, so uncertainty is replaced with expectancy. This is called ‘risk buoyancy’. At Aurecon, our approach to risk is changing from traditional ‘risk management’ to ‘risk advisory’. As you might expect, this means more than simply changing the name of what we do – it’s about advancing our approach to risk, and bringing greater efficiency and profitability to our clients. ‘Risk advisory’ better encapsulates our work, namely: providing ongoing, consultative, collaborative, robust and holistic risk consultancy. “In recent years, risk advisory has grown significantly as businesses recognise the increased benefits it brings. At the same time, both organisations and projects are becoming larger and more complex, which naturally demand a deeper analytical understanding of risk to inform sound decision making,” says Van Wyk. What is risk, and how to prevent it? Risk is a subjective word. What one person perceives as risk, another sees as acceptable or even an opportunity. But while there might be some disagreement on how risk is defined, there is no disagreement on one thing – risk involves a level of uncertainty, which can lead to disruption, and with some level of financial consequence attached. “Today’s risk advisory is about more than simply averting the consequences of risk. It’s about ‘turning uncertainty into certainty’ with a higher level of confidence,” explains Van Wyk. According to a 2015 survey from the Project Management Institute, for every $1 billion spent on projects, $51 million is lost because of poor understanding of the requirements at the outset. That’s why it’s critical that risk advisory work starts as soon as possible in a project’s development. It should begin by assessing the Critical Success Factors (CSF) for each workstream within a project to help bring better integration to processes; more
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efficiency to the use of resources; and better adherence to the project’s schedule. “By ‘turning uncertainty to certainty’, companies can understand how losses arise and how they can be ultimately prevented,” add Van Wyk. During this process, our core challenge as experts is to determine what could go wrong before our clients know about it, so we can advise and add genuine value. “At Aurecon, we take this part of what we do very seriously, relentlessly researching risk and striving for eminence. Doing this means we understand the complexity around a project or operation, and this enables better decision making,” says Van Wyk. At the crux of everything we do is a desire to answer the questions clients should be asking themselves: ‘How do we optimise our operations to best meet our business imperatives?’; ‘Which project is going to cause me the most delay?’; ‘How much should I invest to get the most out of this portfolio?’; and ‘Which of these options has the highest likelihood of succeeding?’ Interestingly, these questions aren’t only being asked at an operational level but all the way up to the C-Suite. Technology selection and application too plays an important role in today’s risk advisory. Aurecon uses a range of techniques and tools, often integrating the outputs from them to deliver the best decisions for any activity. Examples of techniques we use include: Monte Carlo Analysis (MCA); Fault, Event and Decision Tree; Bow Tie; Hazard Studies (HAZOP); FMEA; and Bayesian Networks. This gives us the best possible insight into the precise level of uncertainty associated with any particular scenario. Understanding uncertainty There are three notable areas where understanding uncertainty can deliver clear benefits to a project owner. • Capital Contingency. Historically, a contingency budget would be a single figure determined arbitrarily based on a project’s or organisation’s costs. But this method has clear limitations. By using MCA, we can bring more certainty to understanding the financial impact of a range of potential scenarios and the likelihood of them occurring. By understanding this, clients can optimise their contingency. • Estimate Risk Analysis. This helps clients get a better understanding on estimate accuracy and uncertainties that influence cost overruns. By
looking at direct costs on a project and the risks that affect each of them, we can develop a picture that shows the likely cost and influence each risk has on a project. We can then work with stakeholders to define the consequence of a particular risk and, of course, its associated costs, which informs the potential magnitude of the identified risk. • Schedule Risk Analysis. With any project, there is an acceptance that schedule overruns are a risk. We use MCA to model potential schedule delays and associated costs with a high degree of certainty. This analysis provides predictions on the likelihood of a project being completed on time. It naturally provides clients with more accurate insight into their target dates, budgets and other project management expectations. The certainty of uncertainty “Our ability to understand the risks in clients’ operations has grown consistently over the years and we combine that with our unique experience of infrastructure, and particularly mega-infrastructure, to deliver some of the most advanced risk advisory work in the industry. Similarly, by using pioneering new skills, technologies and tools, we are at the leading edge of risk advisory, analysis and data management,” says Van Wyk. In an ever-changing world, radically underscored by uncertainty, one thing we can be sure of is that we will never know whether we can eliminate all unpredictability by determining our unknowns. But we do know that we want to create an environment where unforeseen factors can be integrated into the creative process to deliver an asset that is risk buoyant. Simon van Wyk is Aurecon’s Risk Uncertainty Leader. He is also an Associate Member of the Institute of Risk Management South Africa (IRMSA); a Corporate Member of the Disaster Management Institute of Southern Africa (DMISA); and a Professional Natural Scientist with the South African Council for Natural Scientific Professions (SACNASP).
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