NZ Manufacturer May 2017 by Media Hawkes Bay Limited

May 2017

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MANUFACTURING TECHNOLOGY Nearly a quarter of German GDP comes from manufacturing.

MAINTENANCE MANAGEMENT Leaving chaos behind.

direct3dprinting.com.au

SOUTHMACH 2017 Manufacturing’s must attend.

Analogue to Digital Chris Barclay, Business Development Manager, Motovated Design & Analysis

I recently suffered memory loss due to a mountain biking accident and have been thinking a lot about the system restore function, and what it means for companies that rely on data, backups and server systems to keep their business running. And those that have quite simply...nothing. Back in time Earlier this month Craig Haywood and I travelled around the bottom of New Zealand, catching up with old clients and poking our noses into local industry to see what was new. What was immediately apparent is that a lot of manufacturers and engineering shops are still doing exactly the same thing they were 15-20 years ago. The same process, the same equipment and in most cases the same one person behind all the ideas, inventions and mistakes. It is easy to just point fingers at people who are “behind the times”, but the reality is a lot of these people might not know any better. An age-old recipe is passed down through the generations and then slowly adapted to suit the needs of the individual and/or company. Unfortunately, structure and following a design or manufacturing process will not necessarily be high on the priority list. These business’s struggle along without much real profit or growth in the customer base. Often it is local loyalty that keeps them above water, for now at least. The owners work tirelessly, obligated to carry on the family tradition, product or service. Kudo’s to those guys; I don’t know how they do it.

Going, going, gone The most disturbing thing, however, is to see a complete lack of technology. We saw chaotic workshops, ancient templates scattered on floors and hung on walls and hand sketches of unique products, stacked in old drawers, or just left on the factory floor. In some cases, there was not a single USB drive to be

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found anywhere. I wasn’t around in the 1950’s but it was almost like stepping through a portal to go back in time! I am not one for catastrophising, but if there are any business owners reading this, what comes to mind? As we know New Zealand is essentially one big fault line, and as we saw in Canterbury, prone to rattling a bit. Ask around the industry in Christchurch and you will soon discover that a lot of information was lost during the earthquakes, companies completely wiped out as they didn’t have a single scrap of data to fall back on. I won’t even delve into the fire hazard side of things.

The changing of the guard What we did also see is a slight change slowly moving through some companies. The son/daughter who has grown up with Dad knocking together trailers from scraps is at the point where they see the benefits of investing in technology. This younger generation is moving more and more into the business, the parents are older and more tired and want to hand things over to someone they trust/can keep an eye on. The resistance to change is not there, especially when it comes to what it could mean for the

FOOD GRADE COMPLIANCE IS EASY WITH CHEMZ

bottom line of the company. After numerous conversations, we could see thoughts starting to form and a slight hint of excitement at the prospect of something new, innovative and ultimately cost saving.

Simple solutions Here is an example. Not to float our own boat too much, but we talked to one trailer manufacturer that was still building them exactly the same way they always had.

continued on Page 11

CONTENTS DEPARTMENTS

ADVISORS

4 EDITORIAL

The AFL and Hidden Champions.

Craig Carlyle

5 BUSINESS NEWS

Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.

Comment on the Australian Budget.

7 MANUFACTURING TECHNOLOGY

Why Germany has so many middle-class manufacturing jobs.

Catherine Beard

A game-changing material.

Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, NewZealand’s largest business advocacy group, representing businesses of all sizes.

We’re moving fast. But nobody knows where we’re going.

12 MAINTENANCE MANAGEMENT Leaving chaos behind.

14 SOUTHMACH 2017

Manufacturing’s must attend.

Dieter Adam

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.

19 SMART MANUFACTURING Greycon’s view of IoT

Printed ‘coffee rings’ avoided with nanofibers. It pays to think deeply…

24 FOOD MANUFACTURING

Lewis Woodward

Panic button emergency alert notification launched.

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.

Fonterra reopens Malaysia dairy plant. IoT start up to benefit farmers.

PRODUCTS FOR 26 NEW MANUFACTURERS M2 cusing Multilaser makes 3D parts.

21 28

On-site tool service keeps production flowing. XPR300 or X-Definition cutting on steel and aluminium.

Dr Wolfgang Scholz

Bonfiglioli NZ expansion.

Is HERA Director and a Fellow of the Institute of Professional Engineers NZ.

Ironjaw boosts injection press clamping force. Effective metal maintenance range released.

29 DEVELOPMENTS

New ownership for Apex Labelling. Apprenticeship boom great news for everyone.

31 REAR VIEW

NZMEA: Monetary Policy and Financial Stability.

The AFL and Hidden Champions…

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CONTRIBUTORS

Dieter Adam, Holly Green, Chris Barclay, Craig Carlyle, Hermann Simon, NZMEA, Martin Jones www.mscnewswire.co.nz

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Vol.8 No.4 May 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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they’re the same thing China is currently smoothing a “peaceful rise” to superpower status. And this was apparent by the AFL game played in Shanghai between Port Adelaide and the Gold Coast Suns last weekend as an opportunity to build local links and held foster a better image for Chinese businesses. The AFL didn’t have to come up with much money on their visit and even groups like Tourism Australia kicked in. So, in a way, it wasn’t about the football. The AFL showcased their game and Port Adelaide – the club -has six people working in their China and Government Relations Division. The club has committed to playing a game a season for the next three years in Shanghai. How about that. Closer relations and business opportunities open up. So, is there a NZ example here? Would Chinese businesses financially commit to a NZ sporting team to open up relationships? Could be hockey, football or netball etc. Who would be involved? NZ Trade and Enterprise or Export New Zealand? The sports team? Is it happening on some scale already? How about the other way? A group of NZ companies go to China (sponsor)and invest in a local sports team to open opportunities for NZ business? Then those companies have the chance to gain a greater guarantee of acceptance in a large market. Think the Belt and Road initiative and if you don’t know about this find out what you can and realise that the world is becoming so much smaller for business. Secondly this issue, you read a fair bit in NZ Manufacturer about Industry 4.0. I am aware that we have companies who are not there yet for this and companies who will

ASIA

MANUFACTURING NEWS

NZ Manufacturer May 2017

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never come on board. Maybe you ought to read a bit more then about the philosophies of German manufacturing where 25 percent of GDP still comes from the manufacturing sector. They are rarely the cheapest producers, yet the superior quality and performance of their products enables them to command premium prices and still boost exports. One source of German success is its concentrated efforts to support research relevant to small- and medium–size enterprises that are less likely to move production offshore. Through Fraunhofer, Germany offers skills, equipment, and services that companies cannot afford on their own. As a result, Germany has strengthened its export-oriented manufacturing base and retained good manufacturing jobs, even though its workers’ wages are among the highest in the world. And they have leaders, Hidden Champions, who stay at the helm for an average of 20 years. A further pillar of the Hidden Champions’ competitive strength is the unique German dual system of apprenticeship, which combines practical and theoretical training in non-academic trades. The Hidden Champions invest 50% more in vocational training than the average German company. You can read more about this in our special focus on Doug Page 6.

Success Through Innovation

EDITORIAL

Green

BUSINESS NEWS

Nurture your mind with great thoughts, for you will never go any higher than you think. - Benjamin Disraeli

Comment on the Australian Budget Energy – the way forward over ‘The Ditch.’ -ed According to Dr Alex Wonhas, Aurecon’s Managing Director, Energy, Resources & Manufacturing, the policy direction outlined in the 2017-2018 Australian Federal Budget marks a distinct move away from a long-standing and bipartisan market led approach to energy to one of targeted direct intervention and government investment in the energy sector. “The 2017 May Budget contains a number of measures aimed at improving the affordability and reliability of energy in form of investment in infrastructure and institutions,” he said. The Government has reaffirmed its commitment to invest in Snowy Hydro 2.0 and to potentially buy a greater share or even obtain outright ownership from NSW and Vic, who currently own 58% and 29%

respectively. The Government has also made a promise to retain Snowy Hydro in public ownership.

The policy direction outlined in the 2017-2018 Australian Federal Budget marks a distinct move away from a long-standing and bipartisan market led approach to energy Mr Wonhas said that the 2017-2018 Australian Federal Budget foreshadows investments in other new generation such as a solar thermal plant at Port Augusta, transmission

and storage infrastructure, as well as a $90m energy security plan. “It is true that the areas identified by Government are likely to require future investment. Further detail regarding the energy security plan will be eagerly anticipated by the industry,” said Dr Wonhas. “In order to improve its energy security, Australia will need to find cost effective ways to store or transport energy from where and when it is produced to where and when it is needed as energy supply will become increasingly variable through the expected uptake of renewable energy. “The growth of wind and solar will become less and less dependent on subsidies as these technologies have now reached the tipping point of becoming cost competitive with new built conventional power stations. “Many technologies already exist to balance supply and demand, including batteries, pumped hydro, improved transmission networks and demand-side responses.

Dr. Alex Wonhas.

“If the Government aims to make these investments without spending unnecessary funds, it will be crucial to obtain ‘proven business cases’ for each investment that compares this particular investment with all key alternatives,” Dr Wonhas said. “For Snowy Hydro 2.0, a feasibility study is expected to be completed before the end of the year, and construction can commence soon after. It is likely that investment can only be secured once those business cases have been prepared.”

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NZ Manufacturer May 2017

MANUFACTURING ANALYSIS

The question isn’t who is going to let me; it’s who is going to stop me. - Ayn Rand

Why Germany has so many middle-class manufacturing jobs By Hermann Simon

Germany is heavily involved in Industry 4.0. NZ Manufacturer presents an aspect of German manufacturing success. -ed

Only about 1.1% of the world population is German. However, 48% of the mid-sized world market leaders come from Germany. Middle-Only about 1.1% of the world population is German. However, 48% of the mid-sized world market leaders come from Germany.

NZ Manufacturer May 2017

These firms, which I call “Hidden Champions,” are part of what makes German economic growth more inclusive: by my calculations, they have created 1.5 million new jobs; have grown by 10% per year on average; and register five times as many patents per employee as large corporations. And they are resilient: my estimate is that in the last 25 years no more than 10% of them disappeared or

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were taken over, a distinctly lower percentage than for large corporations. Nearly all of them survived the great recession of 2008-2009. Moreover, Hidden Champions have also contributed to the sustainment of the German manufacturing base, and it is in large part thanks to them that nearly a quarter of the German gross domestic product continues to come from manufacturing.

looked to the Hidden Champions, or more broadly, the Mittelstand, to try and chart a path to more inclusive growth in their own countries. But how replicable is their success? While other countries could try to emulate aspects of what makes the Hidden Champions so successful, the reasons for their success are the result of a complex network of factors, many of them historical.

The percentage in most other highly industrialised countries such as the U.S., the UK, or France is only about half of this. The effect on employment is enormous. Manufacturing creates jobs at home and at the time same allows companies, through exports, to participate in the growth of emerging countries.

A Hidden Champion is defined by three criteria: 1) a company has to be among the top three in the world in its industry, and first on its continent; 2) its revenue must be below €5 billion; and 3) it should be little known to the general public.

Given this success, it’s not surprising that many non-German policymakers and economists have

You might argue that my research is deeper in Germany than in other countries, and most likely I wouldn’t

Germany seems exceptionally good at creating these companies; I have identified 2,734 Hidden Champions worldwide and no less than 1,307 of them are based in Germany.

continued on Page 11

A diamond is a chunk of coal that made good under pressure. - Anon

MANUFACTURING TECHNOLOGY

A game-changing material Customisation is the name of the game for Utah Trikes, a producer of trikes, quads and custom wheelchairs. President and CEO, Ashley Guy, said from the very beginning the company was all about personalisation. “We started making our quad using existing frame platforms and built custom two-wheel drive rear ends that we’d add on and effectively turn the trikes into quads. That grew into something where suddenly everybody who wanted something customized came to us.”

committing to jigs and fixtures, which meant a lot of man hours to prototype.” Also, as the parts became more complicated it became harder and harder for Utah Trikes to outsource.

These custom lugs, made with Stratasys FDM Nylon 12CF, are painted red after emerging from the tumbler with a smooth, polished finish.

“I was intrigued but had no idea what I was looking for. When we heard about Stratasys Fortus 3D Printers, we knew we had a true production tool that could make real production parts.”

Customer Needs Drive Innovation But customisation has its obstacles, namely time and cost. “The production run might only be 100 parts and it’s hard to get your cost down with such a small run,” said Guy. Utah Trikes’ next step was trying to solve its manufacturing issues. “We have some CNC machines we ran pretty much nonstop,” Guy said. “But this was always a hassle without

What Utah Trikes needed was the ability to make prototype pieces they could actually test, and that would be both cost and time efficient. About this time, 3D printing showed up on Guy’s radar.

FDM Nylon 12 CF A Game-Changer “The FDM Nylon 12CF is fantastic. It’s changing everything for us,” Guy said. He cites the strength of the material, as well as its soluble support as game changers. Additionally, “We can take the part and put it into our tumbler overnight and it comes out with a smooth, polished finish,” said Guy. “We started out using FDM Nylon 12

and it got us about 75% of the way there,” Guy said. “We made a quad prototype using parts printed with other materials that were either too brittle or too flexible.”

focus on designing better, more functional parts, without worrying about how to shape the aluminium or how to lay up carbon fibre onto the moulds,” said Guy.

The new carbon-fibre version of FDM Nylon 12 was just right, according to Guy. “Let’s face it, when it came down to bolting a part on a trike and heading down a hill on it, it was only the Stratasys FDM Nylon 12CF that held up.”

The ability to quickly go from design to in-use part means designers at Utah Trikes can now spend a lot more time perfecting their designs. According to Guy, “Stratasys FDM Nylon 12CF parts can be printed faster, with superior stiffness to-weight performance and with better repeatability than any other 3D printing technology we’ve seen.”

A pedal-powered wheelchair in production at Utah Trikes has 450 distinct parts, 120 of which are 3D printed. Also game-changing for the custom manufacturer is their ability to now design and print on-site, which has cut production time from two months to two weeks, reducing the company’s costs 8-10 times. A Whole New Way to Design With 3D printing, the design process is no longer impeded by machining restrictions. “I no longer have to constrain my designs because of prototyping limitations. Now I can

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Guy cites the superior mechanical properties of FDM Nylon 12 CF and its ability to be used in all stages of the manufacturing process, from rapid prototyping to jigs and fixtures to final production parts for short-runs and custom orders. “With FDM Nylon 12CF, we’re able to make parts we wouldn’t otherwise be able to make.” For further information contact: www. objective3d.com.au

NZ Manufacturer May 2017

The shortest way to do many things is to do only one thing at once. -Samuel Smiles

We’re moving fast. But nobody knows where we’re going The sooner we realise that long-term forecasting is becoming obsolete, the better we’ll be able to cope. The McKinsey Global Institute has estimated that “half of today’s work activities could be automated by 2055” and the Economist magazine published a cover story on quantum computers quoting Google as saying that “such machines are only five years from commercial exploitability.” What inferences do we make from that? Will quantum computers turn everything upside down yet again? “Such computers will be able to chomp their way through calculations that would take today’s best supercomputers millennia,” the Economist explained. What effect will this have on jobs or any other facets of human experience is difficult, if not impossible, to forecast.

Innovations on a par with antibiotics and the airplane Another big trend is virtual reality (VR). Could we predict the implications that seamless and widespread VR will have on, say, profitability of today’s telecommunication and entertainment industry giants?

The accelerating growth of technology, which has doubled every 200 years since 1400. Image: Michael Lee, SA Museum

NZ Manufacturer May 2017

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The churn in the Fortune 500 index speaks for itself, and while we can’t easily forecast which tech startups will succeed and which will fail, what we can say with confidence is that the

MANUFACTURING TECHNOLOGY

The most common way people give up their power is by thinking they don’t have any. - Alice Walker index turnover is going to accelerate.

better methodologies for business to

Much of the uncertainty, about, basically, everything, originates in the phenomenon described by Mike Lee, who argues that “The next double-century (2000-2200) promises no fewer than 150 breakthrough innovations on par with the steam engine, antibiotics and the airplane.”

adapt and adopt to the ever-changing

While the figure is astonishing as it is, what would put this in perspective is the fact that we’ve achieved about half as much during the last 5 millennia.

competitive environment. The

wild

speculation

accelerating

about

technological

the

process

is hardly a novel trend. The news of self-driven carriages must have terrified horse owners; and those pundits who witnessed automation of factory jobs predicted sustained mass-scale unemployment. Every time we attempt to predict the

The creation of telegraph, the internet, and the smartphone reshaped the world for every generation that witnessed them. If inventions of such magnitude show up twice per decade instead of once in a century, forecasting will be futile.

future with the contextual awareness

This isn’t about knowing which big breakthroughs are about to disrupt our economic models or change the way we live, it’s the interplay and layering of these inventions.

primary means for transportation,

As policy-makers, business leaders, and engineers brainstorm applications for, say, blockchain technology, reaching comprehensive conclusions will be just as difficult as it would have been to predict that the smartphone might soon be able to outdo a physician in diagnosing an illness.

been created in their stead.

Adapting to an uncertain future

upon us, what does it mean for the

The sooner we realise that long-term forecasting is becoming obsolete, the better we’ll be able to cope with the new reality. Businesses are already responding by hiring Chief Digital Officers, promoting entrepreneurial culture, and elevating the innovation imperative to the level of existential priority.

have to revisit by 2200) and how

Perhaps another implication will be the end of business strategy as we know it. Strategic foresight and scenarios planning seem to offer

of today, we struggle with the failure of imagination or, perhaps, we discount the notion that unknown unknowns are unknowable by definition. When cars replaced horses as the the world didn’t come to an end. The preceding industrial revolutions

Moving on: The world didn’t end when cars replaced horses.

pushed a number of vocations into oblivion, but plenty of new jobs have But this time, given the qualitatively different nature of the scientific advancement

today,

should

account for a ‘jobless’ future scenario, as much as for ‘jobfull’ one. If the post-forecasting era is indeed mere mortals (a term that we might should we cope? We

must

begin

accepting

uncertainty as a given; stay open minded about technological progress; and, when it comes to retirement planning, it is worth noting that bitcoin had just surpassed the value of gold, Dubai is planning to introduce autonomous flying taxi service, and Airbus has unveiled a drone car concept.

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NZ Manufacturer May 2017

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Success is the sum of small efforts, repeated day in and day out. - Robert Collier

MANUFACTURING TECHNOLOGY

continued from Page 1

Analogue to Digital Historic hand sketches that belonged in a museum, hastily scribbled changes on grease covered shop drawings, and on a weekly basis, a continuous stream of costly rework. The material cut list was ‘invented’ by a guy who has most likely retired and is completely unmatched to the product being manufactured. Now I know some of you will be saying, “C’mon mate, it’s not hard to build a trailer!” You would be correct; a trailer is one of the simplest transport

structures to knock together with nothing more than some scraps and a lot of elbow grease. But what do you do if you really want a trailer that is world class; a product that outshines the rest, is consistent in its design and function. And what happens when you want to make 100 of said trailer? We offered them a very basic answer. Using CAD we 3D model their most commonly sold trailer to their

exact specification. From that, we extrapolate manufacturing drawings all individually labelled with the product name and/or code, with part numbers for each component. A specific cut list is then generated, along with dxf files or similar to be sent off to the plate processors or CNC routers etc. Run the shop drawings through the laminator, and stick them on the wall as the process to follow. Need a trailer slightly longer? Simple,

update the model dimensions and regenerate the cut list appropriately. Consistent design, a big reduction in material waste, less or even nil rework, easy to follow manufacturing drawings, reduced frustration, a refined product and what we all want to see, a higher profit margin. Emailed, backed up, secured, safe. We will even chuck in a USB drive.

continued from Page 6

Why Germany has so many middle-class manufacturing jobs be able to prove you wrong. But researchers in other countries have also examined this phenomenon and found far fewer Hidden Champions in their countries. A colleague who looked for Hidden Champions in Japan for years identified only 220 companies, a researcher in France has come up with only 100. With the exception of Switzerland and Austria, the per capita number of Hidden Champions is nowhere near as high as it is in Germany. Of course, success of individual Hidden Champions is based on their leadership and strategy. The most important difference is the continuity of the leadership. The leaders of the Hidden Champions stay at the helm for an average of 20 years; according to Strategy&, which collects data on the world’s largest 2,500 companies, in large firms the average CEO tenure from 2012 – 2016 was only seven years, and the median was even shorter, at five and a half years.

450 medical technology companies, most of them makers of surgical instruments.

Nearly a quarter of the German gross domestic product continues to come from manufacturing.

The leaders of Hidden Champions are also more likely to come into power at a young age and are more often women than in larger companies.

Scientific competencies also play an important role. The cluster of 39 measurement technology companies in the area of the old university of town of Göttingen are the result of the leading role Göttingen university’s mathematics faculty had for centuries.

But the reasons they are a predominantly German phenomenon are many. This includes the German history of many small independent states (until 1918 Germany consisted of 23 monarchies and three republics), which forced entrepreneurs to internationalize early on in a company’s development if they wanted to keep growing.

The Fraunhofer Institute continues to function as a transmission belt between science and practical applications. The Munich-based Hidden Champion Arri, world market leader in professional film cameras, used the expertise of Fraunhofer to navigate the transition from analog to digital technology, and was thus able to defend its leading market position.

In addition, there are traditional regional crafts, such as the clock-making industry in the Black Forest with its highly developed fine mechanical competencies, which developed into

A further pillar of the Hidden Champions’ competitive strength is the unique German dual system of apprenticeship, which combines practical and theoretical training in

non-academic trades. The Hidden Champions invest 50% more in vocational training than the average German company.

for example, makes only one product — retractable dog leashes — but has the claim to make them better than anyone else.

Tax advantages are another reason. The high taxes on assets in France and the inheritance tax in the U.S. prevent the accumulation of capital necessary for the formation of a strong mid-sized sector.

This has allowed them to reach 70% of market share in this category. But focus makes a market small. How can you make it bigger? By globalising.

Finally, the international openness of a society is an essential factor in the globalised world of the future. Germany is far ahead of other large countries with regard to mental internationalisation. This includes language competencies, international experience from student exchanges, and university studies. Countries such as France, Italy, Japan, and Korea lag far behind in these respects. Why is this mental internationalisation so important? Because while Hidden Champions may be small, they compete on a global scale. They achieve world-class quality by keeping their focus narrow; focus is the most important element of a Hidden Champion’s strategy. Flexi,

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Today, the Hidden Champions are present in their target markets with 30 subsidiaries on average. Despite their medium or small size, they are true global players. About one quarter of German exports comes from the Hidden Champions. I do think the Hidden Champions provide a model of inclusive growth that are worth emulating. But any foreign policymaker or economist seeking to foster a community of such companies in their own country should tailor their approach to that country’s own unique conditions. *Hermann Simon is the author of the newly published Confessions of the Pricing Man. He is the founder and chairman of the consulting firm Simon-Kucher & Partners.

NZ Manufacturer May 2017

MAINTENANCE MANAGEMENT

Running a startup is like being punched for a large company is like being waterbo -Paul Graham

Leaving chaos behind - Taking the first steps toward maintenance Excellence - Craig Carlyle, Maintenance Transformations Ltd for MESNZ

Chapter 2 in the Chaos Theory of Maintenance Management The Chaos Theory of Maintenance Management article made the following key points: • Maintenance Engineers do not like being systemised. • Without transparent and manageable systems, engineers will quickly devolve to firefighting and squeaky door priorities. • High brow asset management techniques and complicated computerised maintenance management systems are not the solution, but merely tools to be applied to a man/process management problem.

What are we here to do? Why does your department and role even exist? It’s possible to describe a few operations that might have a different take on it, (for example, the old Fisher & Paykel Laundry division viewed R&M as contiguous with R&D) but in the whole there is one reason why R&M features on the balance sheet. Let me break it down for you – You are here to provide the highest level of reliability for the lowest delivered cost. From the shareholders point of

view, you also need to maintain the value of the asset. It is all too easy to get lost in the politics of an operation and forget this key principal. You are here to maintain, not to develop, modify or improve the plant. If you are struggling with why you are employed, ask your directors. I know if I bought a manufacturing business I would not look to invest a couple of extra million dollars every year into setting up a team to run around chasing good ideas and opinions. Here’s a nice acid test for you:

A nerve was obviously touched with lots of enthusiastic feedback and requests for more so let’s expand beyond the initial concepts and explore how the average engineer can begin to turn the ship away from Chaos and towards maintenance excellence. Previously, the following top five foundation steps were given as key to leaving Chaos Theory behind: 1. Publicly state that you are going to create a professional and proactive maintenance function. 2. Define the difference between maintenance and non-maintenance tasks. (What are you here to do?) 3. Engage support for your processes from the highest level of your operation. 4. Make sure you are rewarding your staff for success, not failure. 5. Engage the entire operation in your systems and processes. Formalise it, Live it, breathe it, back it. Ok, that’s great, but what are the actual concrete steps for the keen engineer to take? Create an asset list? Explore asset management theories? Start a lubrication schedule? All in good time, but in order to achieve success you need to get some concrete understanding nailed. Start like this:

NZ Manufacturer May 2017

Diagram – A simple and effective Work Management Process

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“My job is to maintain. If you want a new light bulb, I have unlimited resources to help you. If you want a new lighting fixture installed or an existing one moved, you need to talk to someone up the foodchain. I have no budget for that.” Simplistic but a good grounding your thinking.

way

What gets scheduled gets done. Before we even consider how the plans are generated, we need to go

in the face repeatedly, but working oarded.

MAINTENANCE MANAGEMENT

to the pointy end of the process. All the systems in the world are worth NOTHING if the tradesman can ignore or defer your schedule.

most abused and misunderstood term in maintenance management. The problem with “priority” is everyone thinks theirs is the highest.

No computer is ever going to replace you man managing so here’s the tip: You must develop the maintenance scheduling systems and processes as a primary step. Start simple with pieces of paper and learn how to manage the process.

If the receptionist has a blown light bulb, of course it is Priority 1. Same for your Production Manager, etc. Your job as the engineer is to find a way to balance the actual maintenance priority (the risk to reliability and protection of people, process and plant) with the political flavor of your site. Good luck with that.

Of course, the paper method is constrained and limited but I will show you how to use computerised tools easily in due course. View your work scheduling along the lines of the widget making process previously described. If you recognised your department there, this is where the rubber hits the road. If you don’t get this bit right, you are dust and no computer is ever going to help you. Conversely, once your team have grasped the concept that they are working to a plan you will be ready to start building a system that is really going to add value to their working day.

Recognise the sources of your work. No matter where it comes from (preventative maintenance plans, planned corrective tasks, shutdown tasks, compliance tasks, work requests, projects), at the end of the day everything boils down to a tradesman and a list or work. What you have to do is create a system that recognises those sources and includes methods of filtering, organising and prioritising them. It is an important step to recognise that a healthy system will use other existing company systems to debate work before it enters the Maintenance realm: • Capital and Improvement work should be debated in the finance forum and not arrive on the Engineering desk without a budget. • Safety tasks should be managed through the health and safety system with a formal hierarchy of controls applied and reviewed before being passed to Engineering to solve. Sorting through the wheat and chaffe of non-maintenance requests is fundamental to focusing on your primary goals. Put your hard hats on because the next topic is priorities, perhaps the

Whatever the end result, you must ensure the prioritisation methodology is put in writing for everybody to understand. The only salve I can offer for your wound is that an effective maintenance management system does not need to get hung up on priority as the maintenance plan becomes self priortising.

Promote Your Schedule. What is the first thing you look at when you enter an airport? The Arrivals and Departures board. Why? Because it instantly provides a heads-up on how efficiently the travel system is working and a method of tracking the flight you are interested in. Your Maintenance Department should be no different. You need to tell the world what work you have scheduled (Departures) and what work you have completed (Arrivals). Send it to your key clients weekly. Every week. Whether they want it or not. This is the most powerful tool for promoting your new found professionalism and showing the rest of your site that the work is organised using some system other than the squeaky door method. The schedule also reinforces a vital point; the work order number. If the task is not listed (with a work order) it doesn’t exist. The message? – We have a system, a plan and a schedule. If you want to discuss a job, get it into the system. Try talking to the airline about your flight without quoting the flight number! The astute engineer will now realise the earlier emphasis on working to the schedule. You are not going to look that competent if the items on the Departures board don’t happen when you claim they would. What would you think of the airline if the claimed flights never left or arrived?

Computer Time. So now you have evolved from writing all the to-do jobs on the back of your hand or in your notebook, you will quickly see that the task of inputting, organising, filtering, systemising, tracking, moving and reporting work is going to take more than a few pieces of paper. You could always try to bridge the gap with a spreadsheet but my advice is don’t bother. Spreadsheets are mono-dimensional and only ever relevant to the person writing them. Consider this; if we now confidently know when a job is going to happen, would it not make sense to also plan the supply of the materials required? In fact we could even plan the additional resources such as equipment, tools, safe work plans, JSA’s, manuals, plant isolation and additional staff. Even the most evolved spreadsheet solutions get nowhere near the multi-leveraging 3 dimensional capabilities of relational databases. In terms of outlay in time and effort they are a very poor investment. Congratulations. You are now ready to use your first tool, a computerised maintenance management system.

You are ready to take your first steps. A successful maintenance management system will aim to put the right man on the right job at the right time with the right resources. From the Chaos Theory Of Maintenance Management, let us revisit the description of a healthy maintenance management system and set some lofty goals: o The maintenance scheduling function adds approved non maintenance and corrective maintenance tasks to the existing planned maintenance schedule. o Maintenance plans are fully optimised and bankable, based on evolved condition prediction and trades-confirmed resource requirements. o The schedule is a reality driven rolling document that reflects the real site capability (Reality Schedule), (normally on a week by week basis). The reality schedule does not have nice-to-do tasks but only tasks expected to be auctioned.

o The tradesmen understand and work to a 100% schedule achievement. Non achievement is the exception, not the rule. o The operation understands the professionalism of the maintenance plans and processes and considers the schedule as bankable. They strive to make the plant available as the consequences of deferral are understood. o Maintenance is the priority because our maintenance plans have evolved away from feel good periodic checks to optimised invasion points. o It has well developed maintenance plans utilising just-in-time resourcing instead of high inventory stores. o There is NO backlog. How can you do a job last week? Unachieved tasks are put back into the forward schedule. In the next article I will show you how to implement an effective, upwardly driven computerised maintenance management system without breaking your budget or your sanity. I will show you how to demand the best from a system and how to leverage your data to achieve maintenance excellence. Meanwhile, stand back and take a look at your department. Are you operating in chaos? Could you begin to take the steps described here? How big is the prize? The journey from “chaos” to “excellence” is not that difficult and only requires the cheapest, most effective resource out there, ATTITUDE. At the Maintenance Engineering Society (MESNZ), we have heard lots of stories like these, of engineers awakening to the potential of their world and making a real difference. MESNZ seeks to share its collective experiences and inspirations with maintenance engineers throughout the country via media, networking, the National Maintenance Engineering Conference and connecting companies with practitioners and mentors.

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NZ Manufacturer May 2017

SOUTHMACH

If you are not willing to risk the usual, you will have to settle for the ordinary. - Jim Rohn

Manufacturing’s must attend -SouthMACH 2017 With SouthMACH upon us, industry suppliers and organisers are in full planning mode to create a world-class visitor experience. SouthMACH Exhibition Manager Aad van der Poel is also in full flight, declaring the range of exhibitors, products, services, seminars and networking opportunities as greater than ever before – making this year’s show a must-attend.

• Hype of 3D Printing: What role can the technology really play in manufacturing?

“More than 100 international and local exhibitors will inform, delight, entertain and celebrate kiwi innovation across the 2 days. There’s also the serious business of putting forward great commercial deals for the manufacturing community. If you’re based in the South Island then you really need to visit this free event to best position your business with the latest technology on offer.” says Aad.

• Supply Chain Risks and Opportunities

This year will see more machines onsite at SouthMACH than previously. New Zealand’s leading CNC suppliers are going all out to showcase their latest products and machining technology. Total CNC, Revolution Precision Machinery, Haas, Scott Machinery, Aotea Machinery, and many more, will be displaying their newest ranges for you to get up close with. In addition, exhibitors from the world of industrial automation will be displaying Robotics that are shaping the future of the manufacturing industry. Design Energy, John Brooks Automation, and Omron are set to wow visitors with a range of automation solutions that will deliver your business efficiencies and the ability to compete on a global scale. One of the key features of SouthMACH is the comprehensive free seminar programme. Aad is quick to point out, “on both days of the show there are informative and thought-provoking sessions covering topics ranging from Advanced Manufacturing (incl. 3D printing), Industry 4.0, Collaborative Product Design as well as Practical solutions for implementation of Health & Safety practices, all presented by some of the most respected experts in their field.”

FREE Seminar Presentations include: • Additive Manufacturing; New International & Local Developments • Industry 4.0 – where are we at, and what does it really mean for New Zealand manufacturers? • Alone we are smart, together we’re brilliant: How to collaborate

NZ Manufacturer May 2017

successfully: Stabicraft 1600 Fisher case study

• PANEL DISCUSSION: 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?” • New AS-NZS 5131 Fabrication and Erection Standard - Structural steelwork • Intellectual Property: What it is and how to protect it. A full seminar schedule is available at www.southmach.co.nz

‘Speed Dating’ for Manufacturers & Apprentices In an exciting new addition, the Industry Apprentice Workshop in partnership with Competenz and NZMEA brings ‘Speed Dating’ for Manufacturers & Apprentices to SouthMACH 2017. The dedicated session from 1-4pm on Day One of SouthMACH is set to de-mystify the process of employing an apprentice for employers. Many SME’s haven’t previously employed an apprentice and don’t have much idea about the time commitment needed. This workshop will provide an increased awareness with school students about the exciting opportunities a career in engineering and manufacturing may provide. Competenz will be introducing a speed dating style session matching employer and potential employees together providing a one stop shop to review future employment growth opportunities for your business. Additional Business Growth workshops are free to attend for all visitors on-site. Presented by Business Mentors NZ,

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Canterbury Employers Chamber of Commerce and Sales Star – each session aims to provide valuable insights and knowledge to take your business further. More details and registration is available at www.southmach.co.nz

Prizes, prizes and more prizes! “There are a vast number of supplier displays, deals and demonstrations, plus break-out areas for networking and many other attractions including the chance to win some great prizes including an Up Box+ 3D Printer for all those who register early and the chance to win yourself a brand-new Ford* (T&Cs are at www.southmach. co.nz)”, says Aad.

Kiwi Design & Manufacturing Innovation – Close up Another big attraction is the featured presence of the Stabicraft 1600 Fisher brought to SouthMACH by Stabicraft and Caliber Design, a Christchurch based engineering, analysis, and mechanical design consultancy. Jonathan Prince, Director at Caliber Design says, “this is a brilliant example of collaborative product design where in order to compete globally New Zealand businesses have had to innovate and collaborate to make collective gains. The Stabicraft Design team supported by experts from complimentary businesses such as Caliber Design bought a fresh perspective, design process thinking, and bespoke use of composites to the recreational boat market.” The result was the development of a new material that simplified

the assembly process allowing for increased through-put during later assembly stages on the production line. This stunning example of kiwi design collaboration led to winning the prestigious Red Dot Design Award in 2016, one of the most respected design competitions in the world with 5000 entries from 51 nations. The “Red Dot” is the revered international seal of outstanding design quality. A number of other features will be present including the Ubco 2x2 electric off-road motorbike and the world renowned Shotover Camera, designed and manufactured in Queenstown. Clearly, as Aad van der Poel says, “SouthMACH is the South Island’s premier technology trade show celebrating the heartland of NZ Manufacturing. If you are an engineer - mechanical, design, consultant, electrical; machinist; communications technician/manager; supervisor; technical operator; operations manager or similar, then SouthMACH offers the tools, technology and services to work smarter.” With support from leading industry organisations and educational institutions including NZMEA, MESNZ, Competenz, Callaghan Innovation and Canterbury University, SouthMACH 2017 will be the industry’s highlight of the year. SouthMACH 2017 runs from 24 to 25 May at Horncastle Arena, Addington, Christchurch. Free registration is now open for Industry Professionals wishing to attend. Simply visit www. southmach.co.nz/visitor-information/ register

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Showcase. Educate. Sell.

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NZ Manufacturer May 2017

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NZ Manufacturer May 2017

SOUTHMACH 3D Printing Systems

Alsco NZ Ltd

Engineering Compressor Services 35

Bell Technology Ltd

FARO 92

Farra Engineering

BOC 65

FORD NZ

BTR 23

Fuji Xerox New Zealand Ltd

Cad Central

173

Global Shop Solutions

Cadpro Systems Ltd

112

Haas Factory Outlet

Caliber Design

150

Halt & Hass

Callaghan Innovation

156

HTC Specialised Tooling Ltd

146

Catapult Software

192

IFM Electronic

134

Challenge Partners

Intent Group

181

Cigweld PTY Ltd

Intercad (PTY) Ltd

60 132

Codemark 149

Kormax 42

Competenz 90

John Brooks Ltd

Control Devices New Zealand Ltd

Jonel Hydraulics

CSE - W Arthur Fisher Ltd

1 182

Roadrunner Manufacturing NZ Ltd 191

Mastercut Technologies

188

Safety Step NZ Ltd

MDH Mardag

154

Scott Machinery Limited

Shuzi NZ

SICK NZ LTD

184

Metal Science Technologies

Southern Technology Ltd

155

Motovated Design & Analysis

110

Sprockets New Zealand

NZ Engineering News

172

Staff Solutions

NZMEA 22

Supply Services Ltd

Omron Electronics

Supreme Metal Components Solutions 113

135 19

Orbital Tools

TechRentals 28

P L Berry & Associates

Thorn Lighting (NZ) Ltd

Pepperl-Fuchs 155

Torks Precision Engineering

Portable Analytical Solutions

Total CNC Products Ltd

Professional CAD Systems

TransNet NZ Ltd (EcoLight)

170

University of Canterbury

189

178

RAM Rapid Advanced Manufacturing 139

Linak New Zealand Ltd

Plastral 167

157

Design Energy Limited

130

Synergy Electronics Ltd

Radius Benders

Leussink Engineering Pty Ltd

Rostech Surface Finishing NZ Ltd 41

MESNZ Maintenace Engineering Society of NZ 138

169

Mainstream Engineering Ltd (MEL) (ASEL) 15

Leap Australia

Daking Components

Ricoh NZ

150

On To It

Revolution Precision Machinery 195

Locus Research

Electrotest 187

179

BASKIVILLE.COM LTD

Lincoln Electric Co (NZ) Ltd

116

ECI Software Solutions

194

Barcode Products

Dyno NZ

Balluff New Zealand Ltd

-Marcel Proust

Directus Intl

131

Aotea Machinery

We must never be afraid to go too far, for success lies just beyond.

190

Vertigo Technologies

Viking Ironcraft

SouthMach 24th - 25th May 2017

FHR

Horncastle ARENA CHRISTCHURCH

0.9

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FHR

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3.6

6.6 Jonel / Enerpac

3.6 2.4

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2.4

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7.2

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6.6

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7.2

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Balluff 3.0

Scott Machinery *

7 Orbital Tools

194

195

Metal Science Technologies

Cigweld / ESAB

4.2

7.2

Automation

4.8

3.6

67 70 John Brooks

BOC

5.4

ECi Solutions

3.6

1.2

3.6

41 Rostech

5.4 4.2

Thorn Lighting

6.6

6.0

3.6

Daking Components

4.2

FARO 4.2

7.2

Kormax

9.6

Supply Services

Alsco

3.6

Directus International

3.6

H&H

5.4

130

7.2

3.6

4.8

3.6

12 15 13 Safety Baskiville

Viking Iron Craft

P.A.S

Outlet *

7.2

45 Haas Factory

R.A.M.

13.8

3.0

3.6

2.4

Competenz

7.2

4.8

2.4

2.4 3.0 2.4

4.8

Fuji Xerox

4.2

138 139

2.4

Energy

7.2 6.6

3.2

98 Design

6.6

3.0

3.6

2.4

Global Shop Solutions

3.6 ProCAD Systems

3.6

Ricoh

1.6

132 131 4.6

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4.6

3.6

Total CNC *

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7.2

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Lincoln Electrical

Callaghan Innovation

IFM Efector

FORD

2.4

Vertigo

8.4

10.8

3.0

2.4

NZMEA

6.0

10.8

3.6

2.4

BTR

3.0

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Staff Solutions

13.2

134

6.6

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156

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Omron Electronics

3.3

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Boulevard

6.0

3D Printing Systems

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112

Pepperl-Fuchs / Southern Tech

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3.0

157

7.8

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Dyno NZ

CAD Pro

7.2

155

6.0

116

115

111

Motovated Design & Analysis

154

3.0 4.2

Genesis Industustrial Fasteners

7.2

3.6

4.2

110

4.2

114

Supreme Metal

4.2

Canter bury Univers ity

3.0

159 158

160

Mardag

Mastercut

3.6 3.0

161

7.8

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HOLD

4.2

113

5.4

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Caliber Design / Locus Research

3.6

188 189

187

Electrotest

4.2

7.2

CodeMark

4.8

2.4

KEY

10.8

4.2

186

SICK

7.2

5.4

3.0 2.4

148

149

184

4.2

3.6

3.0

164 150

3.6

F/E

167 Plastral

146

7.2

169 Leap Australia

3.6

HTC

CSE WA Fisher

3.0

5.4

Ec oLight

4.8

Intent Group

3.0

170

3.0

3.3

171

Barcode Products

PL Berry & Assoc

4.2

3.0

2.1

FHR

172 NZ Engineering News

2.7

CAD Central

178 179 181 182

177

3.6

Gap must be kept for fire Hose

175

3.0

2.4

173

3.6

2.4

FHR

.. FHR

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.

NZ Manufacturer May 2017

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PLAN DATE: DRAWN BY: Nick Batty Version: XPO Exhibitions Ltd V 47LC 30/03/17

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.

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.

Start where you are. Use what you have. Do what you can. -Arthur Ashe

Greycon’s view on IoT The industrial landscape is radically changing with the implementation of Internet of Things (IoT) technologies which will bring significant challenges to manufacturers and their vendors in terms of software and hardware. These technologies are immature whilst other vendors are fighting now to grab their space in the new landscape. However, there is no doubt that IoT is here to stay. There are many discussions and examples about preventative maintenance and how IoT may help manufacturers improve. There is a shift from selling products or services towards selling measurable outcomes. People in the industry discuss about OEE more and more. Vendors of Manufacturing Execution Systems and Advanced Planning Systems need to embrace the new technologies and prepare for them or else, they risk ending up with obsolete systems. Designing software with modular architectures will allow for easier replacement of parts when better solutions materialise. Increasing interoperability with other systems will allow ‘plug and play’ to the new platforms and operating systems. This will extend reach outside their usual clientele who are cooperating with other software, which is stronger and has deeper specialisation in certain areas.

What is the IoT and why it is important? IoT stands for the communication of anyTHING with another device via the Internet through a cloud based data storage provider for the purpose of sharing information without the optional requirement of any human intervention. Ubiquitous computing and smart sensor technologies have advanced so much recently in combination with technologies like Cloud Computing

and cyber-physical systems that the 1980s dream of a ‘Smart Factory’ has been resurrected. Many manufacturing firms are already planning their strategy and investing to move towards Germany’s “Industry 4.0” initiative otherwise known as the 4th Industrial Revolution. The 1st Industrial Revolution was the mechanisation of production using steam and water. The 2nd Industrial Revolution introduced mass production with the help of electricity and the 3rd was the digital revolution with the usage of electronics and IT to further automate production as shown in the picture below: The German government is sponsoring “Industry 4.0”. This is a multi-year strategic initiative that brings together leaders from the public and private sectors as well as from academia to create a plan for applying digital technologies to the German industrial sector. The government is hoping to expand the traditional core of German industry by leveraging Internet technologies to sell and license machines and plants everywhere. Not only the German government though is bought on the IoT idea, China has also recently proposed its “Made in China 2025” strategy to promote domestic integration of digital technologies and industrialisation. Apple, Cisco, Wal-Mart, Microsoft, Intel, Samsung, GE as well as many other significant tech companies have currently invested in excess of USD 200 Billion in IoT based technology development. The predicted revenues, to become generated by this technology over the next five years, will exceed

those generated by the internet and smartphones together by a factor of 8. Subsequently, the reward for pursuing a participation in IoT based technologies is too big to ignore for a lot of companies worldwide. The economics will be the driving force behind the implementations of these technologies and if our estimations are correct there is no doubt that IoT is here to stay.

Why is security important and the key inhibitor of IoT? IoT introduces a wide range of new security risks and challenges to the IoT devices themselves, their platforms and operating systems, their communications, and even the systems to which they’re connected. In the future, all these “things” will be connected together either in a local network or over the Internet making autonomous decisions. We will no longer have “things” with embedded computers, we will have “things” attached to computers. The Internet will no longer be a web that we connect to, instead, it will be a computerized, networked, and interconnected world that we live in, it will blend much more into real life. Threats in such a networked enterprise will come in all forms, computer viruses that delete important data. Ransomware that encrypts data and demands payment for the unlock key. Manipulation of calibration data for important equipment on the shop floor to make it not work or produce sub optimal quality material. We do not want the PLC controlling the winder machine in a paper plant to suddenly decide that cutting in equal widths is a constraint it has to satisfy. The security on the internet is based on a best-effort approach. This is why there have been so many examples of hacker attacks on either websites or machinery like routers taking them out of service and causing issues to organisations or people depending on them. This issue gets more complicated because the IoT devices will be mostly based on simple processors having a low memory footprint and operating systems which may not even support sophisticated security approaches.

NZ Manufacturer May 2017

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Most of the software is badly written with lots of defects in terms of security. At the moment we don’t mind if our games crash regularly, or our business applications act weird once in a while. Security for computers or smartphones are as secure as they are because Google, Microsoft and Apple spend a lot of time testing their code before it is released and quickly patch vulnerabilities when they are discovered. Connecting everything to each other via the Internet will bring benefits discussed above but also expose new vulnerabilities. Critical applications like software managing the equipment which runs the shop-floor of a manufacturing plant will not be accepted with the current security standards. Security technologies will be required to evolve and be able to protect IoT devices and platforms from both information attacks and physical tampering. To encrypt their communications and to address new challenges such as impersonating “things” or denial-of-sleep attacks that drain batteries. We have not seen any major breakthroughs in security technologies during the last few years to ensure that the required standards will be met, this is the reason security is the key inhibitor. We do not think there is an easy fix as neither the owners nor the buyer of the “things” seem to care much about security at the moment. Their devices were cheap to buy, they work, and they don’t know any of the victims of the attacks unless their own device has been hacked. The sellers of those devices don’t care: They’re now selling newer and better models. The original buyers only cared about price and features. This is not an issue that the current market of smart equipment can fix, other solutions will be needed. Perhaps government and law policies can force the manufacturers to improve the quality of security or connect everything limiting the network locally instead of using the cloud and Internet will limit the hackers’ advantage. One thing is clear, as long as there is not a change in this area then a limited number of organisations will make the leap forward to IoT technologies.

How does IoT affect the design of applications for the shop floor? We discussed above about the ability of devices on the shop floor making quick and smart decisions based on

You can’t build a reputation on what you are going to do. - Henry Ford

the data they constantly acquire whilst also communicating with each other. Does it mean that each of these devices will be able to digest and process the information on its own- then communicate directly with ERP? Does this lead to a flat organisation where all devices are on one level and ERP on top, orchestrating the production? After all, this would improve the decision making and cutting the time it takes for executive level intentions to reach and be executed by people on the lower levels. Our estimation is that the technology is not yet ready for self-autonomous and self-directed cells (“things”) sending meaningful aggregated messages to ERP without exceeding the required volume and eliminating the useless information in each message. We think that, it does not make sense to have the devices talk directly to ERP, or even talk among themselves, just because it is possible. Our personal opinion is that the right model is the ISA 95 and Data Bus concept. A simplified view of which can be seen below: In this model we have the Data Bus, and the devices are not talking directly with each other. The devices are talking to Data Bus and this is where the logic is setup. This allows meaningful data to flow among the different devices horizontally, but also to have the right aggregation level for the vertical flow. Enabling only meaningful information to reach higher levels of the information hierarchy. We do not see the architecture of the “Levels” changing much soon, however we expect the agility of the

shop floor to greatly improve. We expect software in Level 4 (Advanced Planning Solutions) and Level 3 (Manufacturing Execution Systems) to upgrade and become even more important.

Many manufacturing firms are already planning their strategy and investing to move towards Germany’s “Industry 4.0” initiative otherwise known as the 4th Industrial Revolution.

Information will need to travel much faster across both directions, top to bottom and vice versa. The customer intentions will be recorded and travel across the supply chain much faster than they do today. Companies looking to move forward with these technologies will benefit from the ability to shift production targets. This will cater for the customer requirements without decreasing output quality.

many organisations have yet to master.

Without understanding how and where IoT applications can create a benefit for customers or the technological conditions that must be created and maintained, organisations in the roll industries will be left behind in a market where lowering costs is crucial for survival.

a key challenge for organisations

Nimble and issue free communication of the production plan from APS to MES will be needed. Low volume of quality defects and stoppages of equipment needs to work with a higher OEE than today.

Key principles will include architecting

MES communicating with APS on defective production in order to re-plan and send the new plan to production. These are some of the qualities required. Greycon believe that our award winning planning software opt-Studio and X Trim integrate seamlessly with our MES, Greycon Mill, allowing for the above functionalities and are constantly revamped to match the needs of the changing future.

It is still a very immature domain where product and technology categories aren’t yet clearly established. Many software vendors claim that they provide IoT solutions but none of them yet fully covers the new key technology areas which seem to emerge. Architecting for this immaturity, and managing the risk it creates, will be exploiting the technology. Companies needing solutions in the short term can’t afford to wait until IoT is mature, so managing vendor and technology risk will be vital to successful IoT implementations.

for change. For example: Modularising designs or layering so that software and even hardware technologies can be replaced when superior options emerge. Some “things” may be old, allowing attackers many years to find vulnerabilities. Security strategies and technologies must be flexible and able to evolve as new threats develop during a product’s lifetime. New approaches and technologies need to emerge and provide new types of solutions to convince manufacturing organisations to take the leap forward. At Greycon

Conclusion

we are continuously investing in

IoT deployment demands a wide range of new technologies and skills that

new research to further enhance our

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proven solutions.

NZ Manufacturer May 2017

Choose a job you love, and you will never have to work a day in your life.

-Anonymous

NZ Manufacturer May 2017

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Champions keep playing until they get it right. -Billie Jean King

Printed ‘coffee rings’ avoided with nanofibres Cellulose nanofibres can help particles in ink and printed electronics disperse evenly, rather than spread apart like dried coffee rings. Drying is an important part of printing words and electronics. Particles suspended in liquid are applied to a surface and the liquid evaporates leaving the particles behind. Many times, the particles dry unevenly because of the so-called ‘coffee ring effect’. Much like when spilled coffee dries up and leaves behind a hollow ring, particles tend to move to the outside of the liquid droplet. This is a problem, particularly for printed electronics, which require uniform application of a liquid for maximum performance. Cellulose nanofibres offer an environmentally friendly and effective

solution to this problem, explain researchers from Japan in a paper recently published in Science and Technology of Advanced Materials. The researchers tested three different concentrations of cellulose nanofibres added to a solution with suspended particles. They also tried increasing the particle concentration in a solution with no added nanofibers. They photographed the drying process under a microscope over time. The solutions with nanofibres dried much more evenly than those without. Instead of a hollow ring, the particles condensed into a solid dot, slightly shrinking in size as the liquid

evaporated. Particles in the mixtures with nanofibers also moved at a consistent pace. There was no final rush to the periphery as was observed in the solutions without nanofibers.

Picture of dried colloidal mixtures of polystyrene particles (diameter 1.4 um) and cellulose fibres (diameter ca. 20 nm, length ca. 1 um). The polystyrene concentration is fixed at 0.1 wt%, and that of cellulose is 0 (a), 0.01 (b) and 0.1 wt% (c).

The researchers conclude that cellulose nanofibres can improve the drying process and avoid problems stemming from uneven drying, such as degradation of paint coatings, clarity of printed characters on paper, and conductivity of printed electronics. Once the solution dries, the nanofibrrs are left behind along with the desired

particles. How the nanofibres impede or benefit material performance is a topic for further research. The addition of cellulose nanofibres may alter the electrical resistivity of conductive wires in the printed electronics, but the fine tuning of the concentration might be exploited for the control of electric resistivity itself.

It pays to think cleverly about plastic drive train options This is particularly true for rapidly evolving hygiene-conscious sectors such as food and beverage, chemical, recycling, water and waste water management, robotics and medical engineering. Plastic drive train components offer benefits often unrealised in Australasia, including design flexibility, reduced noise, and the ability to operate without lubrication. Other pluses include lower cost and weight, higher efficiency, (improved accuracy), and chemical resistance, says Mr Pat Flood, NSW Manager of the national and international engineered plastics specialist, Cut To Size Plastics. Traditionally Australasian industry has been wedded to metal drive train engineering, which is suitable for a proportion of particular application needs. But the more our industries evolve, the greater the need to think carefully about the smartest use of materials for ‘Clever Country’ industries and design solutions.

Durable alternatives to metal with major design advantages in particular applications include Cut to Size’s WEARLON nylon ranges and Wearace acetal engineering plastics. Gears and drive train components made from them can be moulded and precision machined into shapes difficult to machine in metal. Other functional elements, such as springs and pawls, can be incorporated into them, thereby consolidating parts and trimming the cost, weight, and complexity of geared speed reducers. All WEARLON share major advantages such as high mechanical strength, hardness and stiffness, as well as high mechanical damping capacity. They offer good fatigue and very high wear resistance, with good sliding and emergency running properties. They are also suitable for machinery

WEARLON™ nylons and Wearace™ acetyl ranges (above left and right respectively) each have major strengths in particular applications.

subject to constant moisture and washdown.

level of moisture absorption and good creep resistance.

Typical applications include bearings, guides, chain wheels and guides, bushings and slide and guide plates.

Complementing the physical advantages are a high fatigue and impact strength (even at low temperatures) and good electrical insulating characteristics. In addition, because moisture absorption is low, the Wearace stock part’s influence on mechanical and electrical properties is minimised.

Other applications include toothed racks, mixer rollers, guide rails, rope pulleys, bearings, tappets, cam discs, gear wheels, transport stars, mixer blades, pump wheels, pinions, curved guides, crane supports and idler and guide rollers. For particularly specialised applications, there are custom-engineered polyamides in the PA nylon family, including PA 6G, which is produced by the monomer casting process for even better strength and abrasion/ wear resistance, while having a lower specific weight for improved balance and reduced vibration. A further modification of the PA6G polyamide is OILAMID, which is especially designed for sliding applications through the addition of oil, solid lubricants and stabilisers.

Wearace polyacetal Wearace polyacetal, while typically specified for handling lesser loads than nylons, is eminently suitable and highly cost-efficient for sliding, guiding and roller elements of materials handling machinery. Being physiologically inert, Wearace is highly suitable for food contact applications in natural form. Its main properties are high stability, high rigidity, high hardness, good impact resistance at low temperatures, low

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Wearace derives its mechanical properties from their highly crystalline design, which makes them ideally suited for machining on automatic lathes. Able to maintain its integrity under harsh operating conditions, Wearace is strong, hard and rigid. Its good sliding properties and a low co efficient of friction ensure that performance requirements are consistently met and that wear and maintenance downtime are minimised. Typical uses that benefit from Wearace’s properties include gear wheels with small moduli, cams, heavily loaded bearings and rollers, bearings and gears with small clearances, valve seats, snap fit assemblies, and insulating components for electrical engineering and parts which operate continuously in water of 60 deg C – 80 deg C. Industry specific examples are scraper blades on gelatine extruders, buffer blocks on electromagnetic bogie brakes and ratchet wheels on stapling machines.

NZ Manufacturer May 2017

FOOD MANUFACTURING

Nothing works better than just improving your product. -Joel Spolsky, cofounder of Stack Overflow

Panic button emergency alert notification launched Employee communications software company SnapComms (www. snapcomms.com) has launched a new feature designed for emergency situations in the workplace. SnapComms Panic Button enables first-at-the-scene employees to send a pre-configured emergency alert straight to the mobile phones and desktops of colleagues, as well as large display screens in communal areas.

The Panic Button emergency alert overrides all other applications in use at the time. It displays fully across a screen’s real estate, greatly increasing the chance of employees immediately seeing the alert at a time when every second counts. For additional impact, the emergency alert can include an audio notification. Customer demand led to SnapComms developing Panic Button, explains

Sarah Perry, CEO, SnapComms. She says: “Organisations are increasingly conscious of their responsibilities to staff in emergency situations. They need to minimise the risk, should the worst happen. “In response, we’ve created a high-impact notification tool that’s exceptionally quick and easy to trigger. It saves valuable minutes during a time of extreme stress.”

An important feature of SnapComms Panic Button is real-time reporting. This provides critical metrics such as delivery and receipt of emergency alerts, highlighting which staff have (and have not) seen the message. Panic Button also eliminates a time-wasting step that most other emergency notification systems still insist upon: the official internal publishing process. In other words, first-at-the-scene staff are empowered to broadcast a pre-configured alert without delay - and without having to waste time trying to track down the person who normally publishes internal communications content. Use-case scenarios include: a severe weather warning; a wide-scale medical emergency; a suspected terrorist threat; an active shooter on site; a natural disaster; a fire; or any other time of duress. The emergency alerts can be sent to targeted staff within 60 seconds (this is the standard setting, subject to network connectivity and third party network providers).

Fonterra reopens Malaysia dairy plant after $7 million upgrade Fonterra has reopened the doors to its milk powder manufacturing plant in Malaysia following a $7 million (NZD) investment to boost manufacturing efficiencies and ensure it continues to meet world class health and safety, and food safety and quality standards. The upgrade will allow the plant to blend and pack around 30,000 metric tonnes of milk powder products a year – that is one billion serves of dairy. Managing Director of Fonterra Brands Malaysia and Singapore, Mr Jose Miguel Porraz Lando said the improved facility means Fonterra is better placed than ever to meet the growing demand for dairy – not just in Malaysia, but across 13 countries in Southeast Asia and the

Middle East where the site exports its dairy products. “Demand for dairy nutrition is growing fast across the region driven by the rising middle class and huge populations. The investment will go a long way to helping us meet this growing demand for dairy and cement our role as a leading regional dairy manufacturer and exporter,” he said.

The Honourable Te Ururoa Flavell, New Zealand Minister for Maori Development greets Yang Berhormat Datuk Haji Ahmad Bin Haji Maslan, Deputy Minister (Industry), Ministry of International Trade and Industry with the Hongi.

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Mr Porraz Lando was joined at the official reopening of the plant by the Minister for Māori Development and Associate Minister for Economic Development, Te Ururoa Flavell; Malaysia’s Deputy Minister of the Ministry of International Trade and Industry, Yang Berhormat Datuk Haji Ahmad bin Haji Maslan; and Fonterra Director, Mr David MacLeod. Minister Flavell, in Malaysia for a business and cultural mission, said as New Zealand’s largest company, and the world’s biggest dairy processer and exporter, Fonterra plays a big role in putting New Zealand on the map globally. “Fonterra has a 40 year presence and history in Malaysia and is an example of a successful New Zealand business using Malaysia as a regional hub. It is a real pleasure to be here to witness the impact of Fonterra’s dairy business in Malaysia.” Malaysia’s Deputy Minister of International Trade and Industry Yang Berhormat Datuk Haji Ahmad bin Haji Maslan said the reopening of Fonterra’s plant in Malaysia was an opportune time to celebrate Malaysia and New Zealand’s bilateral relations, which marks its 60th anniversary this year.

“As the largest New Zealand investor in Malaysia, Fonterra Brands Malaysia plays an important role in facilitating the relationship between New Zealand and Malaysia. “Over the last six years, Fonterra has invested close to $20 million in improvements across its two manufacturing sites – contributing significantly to Malaysia’s overall manufacturing infrastructure and capabilities,” he said. Fonterra Director and farmer shareholder Mr David MacLeod said the plant reopening builds on Fonterra’s generations of dairy farming and manufacturing expertise to deliver high quality and safe milk to the world. The reopening of the improved milk powder manufacturing plant is another strong step forward for Fonterra in Malaysia, which has built a significant local presence over the past 40 years and more. Today, Fonterra has more than 700 staff across two manufacturing sites, a corporate office and a global shared services centre, and is behind well-loved dairy nutrition brands such as Anlene, Anmum (Materna, Lacta and Essential), Fernleaf and Anchor.

FOOD MANUFACTURING

The difference between ordinary and extraordinary is that little extra. -Jimmy Johnson

IoT start up set to benefit farmers

A BloomSky weather station on display at the Farming2020 event in South Waikato.

Fonterra farmers will come together to trial innovative technology that will allow them to take insights from the weather and bring greater precision to New Zealand dairy farms. Fonterra is playing its part in fuelling the revolution of on-farm weather forecasting by working with MetService and BloomSky – a smart weather camera station that delivers hyperlocal weather information in real-time to any laptop, tablet or smartphone. More than 70 BloomSky weather stations will be installed by farmers across the country in the coming months. MetService will use observations from the devices to provide forecasting and greater seasonal insights through data analytics to all users of Agrigate – the online dashboard developed by Fonterra Farm Source and LIC to give farmers the data they need to make faster and smarter decisions. Fonterra farmer Kevin Argyle is trialling the solar-powered ‘SKY2’ device as well as the wireless add-on called ‘Storm’, and has seen first-hand how the BloomSky system measures temperature, humidity, rainfall, wind speed, wind direction, UV and barometric pressure to give him a detailed view of his farm’s climate. “It really personalises it and enables us to make optimal on-farm decisions,” says Argyle. “People often underestimate the variability within relatively small geographical areas. The other day we had 29 millimetres of rain and a few kilometres down the road they had five. That’s a big difference when you’re thinking about the best time to cultivate a paddock or move stock.

“By working with MetService and BloomSky we’re able to offer our farmers the latest technology while also looking for ways to innovate further in the future,” says Tim Cutfield, Fonterra Head of Agrigate. “We know that the weather stations will be popular because of the positive feedback we’ve already had from

those trialling the system, and also because our farmers are amongst the best in the world when it comes to the adoption of technologies that enhance animal health and wellbeing, environmental sustainability, and efficient farm management.”

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

“Weather is one of the more significant risks that impacts a farming operation so to have a real-time app that provides insights in terms of what has happened, what the current weather is and what it’s forecast to be for your property has huge potential value.” Why the Need for inSight™?

BloomSky, which is an Internet of Things (IoT) start-up that became the most-funded weather project on global crowdsourcing platform Kickstarter in 2014, aims to make microclimate data more accessible to everyone. Looking ahead, the integration of new weather technologies with other gadgets offers up exciting possibilities. Already, BloomSky’s tech can work in with smart devices such as thermostats or irrigation systems to control them based on the weather outside.

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

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NZ Manufacturer May 2017

NEW PRODUCTS FOR MANUFACTURERS

Creativity is intelligence having fun. -Albert Einstein

M2 cusing Multilaser makes 3D parts With an overall size of 250 x 250 x 280 mm? (x, y, z), the M2 cusing family offers high flexibility for the production of a wide range of 3D parts made of metal in the medium-sized machine segment. The M2 cusing is available as a single laser variant with 200W or 400W and as a multi-laser version with 2 x 200W or optional 2 x 400W. A special feature of this machine type is its fully integrated, compact design. That means there are no “satellite solutions” for laser source and filter technology. Users benefit from this solution’s excellent accessibility to all system components and low footprint. The M2 cusing Multilaser also features physical separation of the process chamber and the handling area to

ensure user-friendliness and safe operation. One special feature is the new filter concept. The filter surface was enlarged from previously 4 m to now 20 m and thus by a factor of 5. The filter module was designed with fixed piping and fully integrated into the system. Increasing the filter surface has a positive effect on the change intervals. The plant availability also increases significantly and a real three-shift operation is possible. The new filter approach is also in line with a qualitative aspect of laser melting: The significantly faster build rate resulting from using multiple laser sources is prone to increased smoking. Being able to change the filter in a safe, fast, and easy manner is therefore an

essential must-have if you want to fully exploit the system’s capacity. Moreover, the new filter technology was further developed with regards to safety-related aspects, as presented in the ATEX Directive. Therefore, the M2 cusing family The M2 cusing Multilaser in operation. With an overall size of 250 X is equipped with a 250 x 280 mm? (x, y, z), this machine in the medium-sized machine filter than can be segment offers high flexibility in the production of a wide range of flooded. This ensures 3D parts made of metal. safe handling when safety in particular when processing changing the filter. This is a real plus when it comes to reactive materials.

On-site tool service keeps production flowing As Australian and New Zealand industry continues to optimise its efficiency to meet international competition and delivery deadlines, uptime is king and the cost of downtime is ever-increasing. That’s where the value of on-site tool services is truly felt. Not having to ship out valuable maintenance and fabrication tools – including torque wrenches, hand pumps or cylinders – just for a service or calibration means staff can get back to the job quicker.

“On-site tool services, such as tool commissioning, application audits, calibration, and safety training help keep you working at the highest possible levels of safety, efficiency and reliability,” says Enerpac National Bolting Product Manager, Australia and New Zealand, Mr Andrew Marsh. The global Enerpac organisation – which has been a leading Australian and New Zealand high-pressure (700 bar) hydraulic tools specialist for more

than 50 years – backs its products in the field with time-saving on-site services. “On-site tool service and calibration is highly useful for worksites ranging from transport and metal fabrication workshops, through to mining, energy, oil and gas, construction and bulk handling sites, where elimination of delay and hazards is top priority,” says Mr Marsh. On-site services offered by Enerpac

include: Tool Commissioning, which is conducted on-site to ensure that all maintenance staff are adequately trained and aware of the safety and operational requirements of each tool. Application Audits, which help to determine the best tool for the job. Factors like tool fitment, job time frame, required lead times, operational environment and budget are all taken into account when putting a customised equipment package together. Calibration, which is an essential part of tool optimisation. As materials wear and age, the torque output can vary due to several factors, including loss of lubrication inside the tool. These potentially hazardous errors are corrected by auditing and verification procedures which can be conducted on-site by specialist authorised service and calibration centres. Safety Training, which is a vital element in ensuring that staff are able to properly use their tools and avoid common hazards and mistakes. Since tools and technology are constantly being updated, it’s important to continually update the safety training of staff. Enerpac is committed to the safety of its end users and has a global ‘Goal Zero’ initiative, where the aim is for zero safety incidents to occur while using Enerpac tools worldwide. On-site services are an important step in the ‘Goal Zero’ plan, because they make sure that all tools are operating at optimum levels of safety and that operators are fully versed in the latest safety procedures and guidelines.

Enerpac professional bolting tools

NZ Manufacturer May 2017

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NEW PRODUCTS

I don’t lose any sleep at night over the potential for failure. I cannot even spell the word. -James Mattis

XPR300 for X-Definition cutting on mild steel, stainless and aluminium X-Definition class plasma combines engineering advances and refined high definition plasma processes to deliver unmatched plasma cut quality on mild steel, stainless steel, and aluminium. Laboratory testing shows ISO-9013 Range 2 cut quality on thin mild steel and extended ISO Range 3 cuts on thicker metals. To reach this point Hypertherm engineers had to develop a number of new patent-pending processes like Vented Water Injection (VWI) and plasma dampening, and new vent-to-shield technologies. The result is squarer cut edges, markedly less angularity, and excellent surface finish on non-ferrous metals like aluminium and stainless steel. The XPR300 cuts faster and uses power more efficiently than earlier Hypertherm systems like the HyPerformance HPR260XD. Piercing capability is also improved thanks to increased power and an exclusive argon-assist process which enables 30 percent thicker piercing on mild steel

and a 20 percent increase on stainless steel. Additionally, consumable life and cut quality over the life of the consumables get a dramatic boost from advances such as Cool nozzle and Arc response technology. The latter of which protects consumables from the negative impact of ramp down errors, a regular occurrence in real-life cutting. By reducing the impact of ramp down errors, XPR consumables can last up to last three times longer than on competitive, older generation systems. Despite being Hypertherm’s most advanced system yet, the XPR300 is easy to use. Sensors in the power supply deliver refined diagnostic codes and significantly enhanced system monitoring information. This reduces troubleshooting time and provides proactive data to improve overall system optimisation and uptime. Additionally, the system is designed with fewer consoles and connections so operators can spend less time setting-up and more time cutting.

Bonfiglioli NZ expansion gives customers enhanced efficiency Bonfiglioli NZ’s expanded warehouse optimises stock availability and accessibility Bonfiglioli is expanding its New Zealand branch with a 25% bigger warehouse, workshop and freight transitioning area as part of an overall plan to streamline logistics, optimise stock availability and better serve customer needs.

The Auckland-based branch serves all of New Zealand, by providing high quality gears, motors and drives suited to factory and processing automation plants, food and beverage, materials handling, printing, processing of metals, textiles, paper, glass, stone and wood processing, mining and energy, wastewater, waste and bulk handling operations. The expansion of the NZ branch is part of a strategic plan to grow the entire operation with a strong focus on stock availability, to meet customer needs.

For example, an EasyConnect feature allows operators to quickly plug the torch lead into the torch connect console without the use of tools, while a patent pending QuickLock electrode delivers easy quarter turn tightening to further reduce setup time. Another new design feature is a quick-change torch that enables an operator to rapidly change torches with just one hand. All consoles feature advanced autogas capability allowing operators to select and implement cutting jobs directly from the CNC, along with Wi-Fi in the power supply to enable system, or even multiple system, monitoring from afar. Hypertherm designs and manufactures advanced cutting products for use

in a variety of industries such as shipbuilding, manufacturing, and automotive repair. Its product line includes plasma, laser and waterjet cutting systems, in addition to CNC motion and height controls, CAM nesting software, robotic software, and consumables.

Ironjaw boosts injection press clamping force Ironjaw, a new player in the injection market, has launched the first clamping-force “booster” system for injection presses. The technology, which can be adapted to all types of mould, increases the capacity of the injection press, enabling 30-60% more clamping force.

The system has been successfully tested on several million R&D-stage parts, creating a company that is dedicated to the technology in order to provide the world’s plastics Other initiatives include processors and moulders with a in-country assembly in both cost-effective solution to boost press Australia and New Zealand, capacity. which further enhances lead The technology makes it possible to use times and allows Bonfiglioli presses that are less powerful but more to respond to challenging energy efficient to achieve the same result, with an immediate impact on projects in both countries.

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part production prices. Ironjaw technology is the first system to boost the clamping force of injection presses. It uses a system of steel “jaws” to clamp the mould. The technology produces spectacular gains in moulding pressure – up to 60%, depending on the configuration – and decreases or even eliminates flash! It works with all types of plastics, including recycled materials.

NZ Manufacturer May 2017

NEW PRODUCTS

Happiness is not the absence of problems; it’s the ability to deal with them. -Steve Maraboli

Effective metal maintenance range released Suhner Australia has released a range of metal maintenance tools and cleansing agents to make it easier to maintain and fix metals. The range includes a choice of four portable metal maintenance tools as well as the Suhner INOX cleansing agents. Designed to fix and restore damaged stainless steel, aluminium, copper, and other metals, the metal maintenance tools are battery operated to provide complete portability. The cord free tools make it easier to access metals located on building sites, in shopping centres, process plants, facilities and public spaces. They also let users safely work in public areas because the cordless tools can be fitted with light polishing belts that release no dangerous particles. Powered by high performance lithium ion batteries, the tools enjoy a long running time so that users can complete the job at hand. Plus, the batteries feature a very low self-discharge and zero memory effect. Compact and lightweight, users can cut, grind, polish and restore metals on rails, balustrades, building facades, food counters, lift doors, down pipes and so on, without experiencing fatigue. The lightest tool weighs just 2kg with the battery pack, while the heaviest only 2.4kg with the battery pack. Built to perform, they feature a high power output to ensure fast, efficient work that helps deliver a quality result.

The series includes a tube polisher, a fillet weld grinder, a particularly slender belt grinder with contact arm, and a straight grinder.

and the ultra small angled head (45 mm), it is ideal for work on fillet welds and in tight places.

The Tube Polisher ATC 7

This tool is designed for work on metals in difficult to access places. The grinding and polishing belts can be changed in seconds so users can get through more grinding and polishing of metals quickly. The standard equipment includes a universal contact arm that can be used with belts 3, 6, and 12 mm wide. For the greatest possible flexibility, there are 6 different contact arms available for belts 3–19 mm wide. The ABC 7 works at 7,000 rpm, making it a powerful lightweight tool.

The tube polisher ATC 7 is ideal for polishing tubes such as stainless and aluminium balustrades up to 48 mm in diameter. Its large wraparound angle of up to 180° ensures fast, efficient work and perfect maneuverability in tight elbows. Low contact pressure is used for the wraparound and material can be removed to a very fine degree, leading to an outstanding finish. The Battery Fillet Weld Grinder AKC 3 The battery fillet weld grinder AKC 3 has been developed specifically for cleaning and polishing in awkward places. Its reduction gears make it an extremely powerful tool. Thanks to its compact design, long neck (140 mm),

The Battery Belt Grinder ABC 7

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The Sun Clean The Sun Clean removes rust and deposits from stainless steel, aluminium, copper and mild steel. The deep cleaner is very effective and quickly and easily removes dirt without damaging the oxide film on the metal. The Sun Protect INOX

This universal machine is ideal for work with nonwoven brushes and flap wheels on flat areas. The ASC 9 helps remove tarnish from metals including marks found on balustrade piers, stair edges and stainless lift doors. It also lets users blend into matte surfaces, e.g. on square tubes.

Sun Protect is a neutral and mild agent that washes away all residues. It protects all metals against corrosion and contamination by creating a barrier. It works by forming a protective film of nano particles to promote the exchange of oxygen needed to build an oxide layer. The regular use of the agent helps to eliminate corrosion even in environments that possess aggressive ambient air.

INOX Cleansing Agents

The Sun Polish

Suhner has also released a range of cleansing agents that clean, polish and protect metals. Its new, ‘green’ based INOX agents are made from plants and are free of harmful chemicals. They can be used in public places without posing a threat to humans or the environment. Plus, the INOX range is very effective against even the most aggressive deposits of contamination on metals.

The INOX Sun Polish has been created specifically to clean matt surfaces. Suitable for stainless steel, nickel, copper, bronze, chromium and aluminium, it brings the lustre back to metal quickly and easily. As all three agents are NSF certified they can be used to clean machines involved in producing both food and pharmaceuticals. The comprehensive range is well priced, very easy to use, highly effective and cuts down on maintenance.

The Battery Straight Grinder ASC 9

Applied quickly by hand, the NSF approved Suhner INOX agents

clean and polish metals easily. The fast-acting, plant-based ingredients remove aggressive deposits in metal pores, ‘tea-stains’, streaks and fingermarks. Included in the range are the INOX Sun Clean, Sun Protect and Sun Polish.

DEVELOPMENTS

The last 10 percent it takes to launch something takes as much energy as the first 90 percent. -Rob Kalin, founder of Etsy

New ownership for Apex Labelling Leading labelling systems manufacturer, Apex Labelling, will see increased investment under new ownership.

engineering and product development in the United Kingdom as well as experience here in New Zealand with Compac Sorting Equipment – a leader in high-speed pack house technology for the fresh produce industry.

Company founder Phil Etheridge has sold the company to Sam Howe who will become Managing Director and oversee the day to day running of the business, with Etheridge staying on for at least a 12-month hand over period.

Howe says it will be business as usual despite the change in ownership and will look to make significant investment into the company to further increase its market share and to offer a broader range of services to its customers.

Established in 1977, Apex Labelling designs and builds complete labelling solutions for a wide variety of applications. The company is heavily involved in the Apiculture, wine making, breweries and FMCG industries supplying customised labelling solutions to small and large-scale customers.

“Apex equipment has a reputation for being very reliable, and we absolutely want to continue that,” says Howe.

Howe has a background in automotive

With

“In the short term, we’ll be looking to increase investment in R&D and to boost our engineering capacity and resources. While also having more resources on the ground to service our customer base.” Apex

Labelling

systems

operational through New Zealand and Australia across a broad spectrum of industries, Howe says the company will embrace more technology to improve efficiency and increase output from customer production lines.

Sam Howe (left) and Phil Etheridge of Apex Labelling.

Embracing more advanced technology, Howe says the company will also make further investment into developing vision based orientation capabilities for its systems. “Customers are increasingly looking to differentiate their products through packaging. By leveraging vision recognition and camera technologies from adjacent industries, Apex is enabling this shift towards more unique and customised packaging.

Harnessing the potential of big data to improve the security of IoT devices The power of big data is used in a strategy developed by A*STAR to improve the security of networks of internet-connected objects, known as the Internet of Things (IoT), technology which will make everything from streetlights to refrigerators ‘smart’. More than 20 billion devices are expected to be upgraded and connected to each other by 2020. However, with IoT becoming increasingly widely adopted, developers need to guarantee its security. One hacked target could be the 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

gateway to other parts of the network, making it vulnerable to breaches of sensitive information. This was demonstrated in October 2016, when a huge attack on IoT devices across Europe and the USA, such as CCTV cameras with easy-to-guess passwords, contributed to outages for several major websites. Currently, a number of web services, including online banking and Google, use or offer a two-step authentication process to increase the security levels. Since passwords can be leaked

or cracked, these services require secondary secret information from the customer. This could be another code transmitted via SMS, email or a security token; or the user’s fingerprints or facial recognition. However, the direct application of these methods to the IoT is not practical. “We want to achieve the same level of security as bank servers offer, but the resources needed are simply an overkill to typical IoT devices, “explains Jun Wen Wong, one of the researchers involved in the study. “We

Orientation capabilities allow the labelling system to identify physical features of an object and position a label accordingly. Brand identity is incredibly important in today’s retail market, so we need to be able to offer technology to facilitate this process.” Giving customers flexible finance options is also on Howe’s agenda. “We’re looking to develop a lease model for our labelling systems, which some companies might find more attractive than purchasing outright.” had to think about a brand new protocol.” The new strategy uses the conventional password as first step for authentication, but a second step uses the whole history of the data exchanged between the IoT device and the server. The scientists proposed algorithms that generate and store in the IoT device a very small piece of secret information, which can concisely represent the whole history dataset, and can be retrieved for the authentication. Thanks to this approach, taken from the big data sector and originally applied to the IoT, this security two-step system can be compatible with IoT devices with low computation and small memory.

NZ MANUFACTURER • June 2017 Issue • Features

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Food Manufacturing

SouthMACH 2017 Review

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Editorial Copy Deadline – 16 June 2017 Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz

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At NZ MANUFACTURER our aim is to keep our readers up to date with the latest industry news and manufacturing advances in a tasty paper morsel, ensuring they do not get left behind in the highly competitive and rapidly evolving manufacturing world.

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NZ Manufacturer May 2017

DEVELOPMENTS

As you start your journey, the first thing you should do is throw away that store-bought map and begin to draw your own. -Michael Dell

Steady business climate doesn’t mean businesses should get too comfortable Many business owners forget the potential risks of doing business when they’re enjoying a steady economic climate. It’s important for business leaders to prepare in advance for potential future downturns, according to Atradius.

It is important for businesses to safeguard cash flow from bad debt, which can damage profitability and business-supplier relationships. Credit insurers follow up bad debts on the business’s behalf and can also provide loss recovery services.

Martin Jones, country manager, New Zealand, Atradius said, “When times are good, businesses can forget that things can change in an instant, becoming complacent. This means that good times can often be the most dangerous.

Organisations in Asia Pacific can lose, on average, up to 50 per cent of the total value of their trade receivables that aren’t paid within 90 days of the due date. (1) Credit insurers can collect debts that would otherwise be written off.

“We know from recent history that recessions go in cycles of around seven or eight years, and those cycles are only getting shorter. So businesses should take steps now to prepare for more difficult times. As the saying goes, you can’t insure a burning house.”

Credit insurance can also help to strengthen cash flow through a business so it can keep trading. They can provide early warning of potential payment difficulties. They do this by providing access to buyer credit rating information so businesses can better evaluate the risks of working with

new customers thus helping to limit unnecessary trading risks. Martin Jones said, “A good trade credit insurer will add value to businesses of all sizes and act as the business’s eyes and ears on the ground. It can check that prospective customers are stable, creditworthy, and have a reputation that meets the required standards. Credit insurance providers have access to live data on millions of businesses which better-informs their customers to make strategic trading decisions.

requirements.

“Credit insurance policies cover both goods sold and delivered and services rendered. It can be tailored to cover other risks, like work in progress and binding contracts. This means businesses get fit-for-purpose cover. Credit insurers can provide flexible cover options that let organisations match the policy to the business

Reference:

“The cost of this cover is usually very affordable and forms the basis of a sound, long-term financial plan. Although credit management cannot completely prevent bad debts, credit insurance enhances and strengthens credit management processes to protect cash flow.”

(1) Atradius Payment Practices Barometer for Asia Pacific, 2014

Apprenticeship boom great news for everyone

Paul McGilvary, Asure Quality director

The government’s confirmation that there are now 43,000 apprentices in New Zealand is great news for everyone, says the Industry Training Federation.

AsureQuality is pleased to announce the appointment of Paul McGilvary to its Board of Directors, commencing 1 May 2017.

It’s great news for the 43,000 apprentices, developing and applying their skills in the productive economy, earning and learning, on pathways to successful futures in industries crying out for skills. It’s great news for communities, because apprentices are productively employed, trained and mentored by skilled people, and becoming future community and business leaders.

It’s great news for the government, since using real workplaces as sites of learning greatly reduces costs, delivers an immediate economic return, and avoids skills mismatch. Apprentices train to today’s industry standards using today’s technologies in today’s commercial realities. But mostly it’s great news that more and more employers are taking on apprentices. The proportion of apprentices in the workforce is the same as the mid-80s, which many consider the heyday, and when many apprentices were employed by the government.

Domestic sales increase The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions, completed during April 2017, shows total sales in March 2017 increased 2.93% (year on year export sales decreased by 8.10% with domestic sales increasing by 17.95%) on March 2016.

Paul has a diverse background working in a variety of industries including dairy, horticulture, research, infrastructure and the motor industry. He has worked throughout Australia, Germany, Russia, the United Kingdom, USA, Japan and China, and held management and governance roles for NZ Milk Products, Fonterra and HortResearch. Most recently, Paul was the Chief Executive Officer of Tatua Dairy Company for eight years until January 2017. He has a Bachelor of Commerce and Administration (Hons) from Victoria University in Wellington. “Paul brings a wealth of commercial experience to the AsureQuality

Board, both in terms of international marketing and business expertise, and leadership acumen,” says Janine Smith, AsureQuality Chair. “His ability to foster solid and beneficial business relationships, and his understanding of the risks and challenges inherent in globalisation, will support AsureQuality’s strategic priority of growing our global presence through new collaborative opportunities. “We are delighted to welcome Paul to the Board, and look forward to the contribution he will make as we continue to extend the breadth and quality of the company’s services.”

In the 3 months to March, export sales decreased an average of 9.4%, and domestic sales increased 7.1% on average.

levels, orders and inventories) was at 102, up from 100 in the last survey, and the

The NZMEA survey sample this month covered NZ$360m in annualised sales, with an export content of 51%.

last result of 106.33. Anything over 100 indicates expansion.

Net confidence rose to 23, up from 0 in February. The current performance index (a combination of profitability and cash flow) is at 97, down from 98.3 last month, the change index (capacity utilisation, staff

NZ Manufacturer May 2017

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forecast index (investment, sales, profitability and staff) is at 105.33, down on the Constraints reported were 78% markets, 11% skilled staff and 11% capital. A net 38% of respondents reported a productivity increase in March. Staff numbers increased 4.31% year on year in March.

REAR VIEW

Little minds are tamed and subdued by misfortune; but great minds rise above them. -Washington Irving

NZMEA: Monetary Policy and Financial Stability For Kiwi manufacturers who are working hard to stay competitive, monetary policy and financial stability are not always a concern day to day – there are bigger immediate issues that define your businesses success. However, all have felt the effects of monetary policy settings, through the high exchange rate and interest rate levels, and the threat of financial instability on a global scale during the GFC. With an election approaching and a number of parties discussing changes to Monetary Policy, as well as the stepping down of the Reserve Bank Governor, it’s a good time to consider what improvements could be made. In recent years, one of the biggest issues in this space for manufacturers and exporters has been a significantly overvalued exchange rate, directly hitting margins and competiveness of exporters and our import competing manufacturers. Despite continued vocal calls from the Reverse Bank of New Zealand (RBNZ) that it is overvalued, and the drastic falls in dairy prices (of which the exchange rate often somewhat follows), it remained high. The other side of this issue is how the RBNZ works to protect financial stability. This definitely does not feel top of mind when things are going well, but our experience during the GFC showed how financial instability

can hit our manufacturers hard, even when most of the damage occurs offshore. With continued risks highlighted in our housing market, paired with high private debt, it is an issue we need to be proactive about. In recent years, there have been some positive developments in this area, particularly in the area of macro-prudential tools, specifically the introduction of Loan to Value Ratios (LVR). There remains more opportunities in this area to sure up financial stability, taking some lessons from around the world. Doing more in this space could also help free the Reserve Bank up to take more action on interest rates and the exchange rate – we can’t have the RBNZ held hostage by risks and pressures in a rapidly increasing housing market to act on other issues.

So what do we propose be changed? In general, we believe the Government needs to broaden monetary policy targets and needs to update the Reserve Bank Act and the RBNZ’s Policy

Targets Agreement, for example, including a more explicit focus on the exchange rate level and volatility, as well as wider measures/ targets of economic success to achieve that. We would like to see more research on what targets could be added to provide better and more consistent outcomes for the productive sectors of New Zealand. This could inform the Government needs to better define other targets into the RBNZ’s mandate, such as the employment rate and level of the exchange rate, while keeping flexibility and judgement to the RBNZ in the short and medium term. We believe there should also be an exploration on how to broadening decision making within the RBNZ in terms of policy decisions. For example, moving to a Board decision making structure, as is used in some other countries. The last change, relating to financial stability should be giving the RBNZ flexibility to research and implement additional macro-prudential tools to help protect financial stability. Specifically, Debt-to-Income ratios should be added back into the Memorandum of Understanding (MoU)

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to allow the RBNZ to implement these when and if they see it as appropriate. It is positive to see that it has been requested by Government that the RBNZ provide a cost-benefit analysis of DTI’s be completed with public consultation, and we would encourage them to add these specifically to the MoU following this.

We would like to see more research on what targets could be added to provide better and more consistent outcomes for the productive sectors of New Zealand.

NZ Manufacturer May 2017

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