New Zealand Manufacturer March 2014 by Media Hawkes Bay Limited

March 2014

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Case Study Clever tax service helps maintain high growth Page 9

Lean Manufacturing

The Future of Manufacturing

Why Lean fails to make industry competitive Page 24

3D toy puzzle designed with the help of additive manufacturing Page 15

The State of Manufacturing In a land of small companies, making big things for domestic and overseas markets, it’s important to get to the heart of the matter. Which is, of course, how well are we all doing? Not just the large companies and the ones who provide much financial impetus to the New Zealand economy. But the little guy in the back of Dargaville or Invercargill, head down over a machine all day coming up with the answers for a client around the corner. A lot of manufacturers miss out on the big lights, the awards and commendations because they don’t go there or are too busy with their small company to pull out the suit and tie and dash off to Auckland for the awards ceremony. They are not ask how they are going and are too involved in running their enterprise

to fill in the application form for (say) best small manufacturer of the year or manufacturer with the best idea. So this is an inside out situation – the companies we know about are the ones coming forward- or being approached - with the export success story on the latest breakthrough in milk or widgets, or whose R & D endeavours result in a great idea being snapped up by a company overseas. There are just as many other companies out there, making equally as impressive products that don’t scale the heights, or bother with the attention, who don’t apply for a grant from Callaghan Innovation - to go through the hoops - or enter the Exporter of the Year Awards. They fly below the radar and just get on with it, knowing that what they make for their local market doesn’t necessarily need to be known about, exported or sung about on high. But sometimes, just sometimes, they also like to be asked how they are really doing, how things are. When manufacturing reports come out

Matt Carrier, Helix Industries, Christchurch. His company offers services from product design, tool and die making, through to the manufacturing of one-off specialist parts or full production runs on sophisticated CNC machinery.

– as with the latest, Castalia Report – there is interest for a while on the state of play, the state of manufacturing. And when you realise that there is a lack of inclusivity nationwide – afterall, they undertook case studies of 15 successful, high growth manufacturers, a snap shot of the big picture - then it begs the question of who knows what about whom? Eleven of the companies are from Auckland with the other four from

Doug Green Hokitika, Hastings, Christchurch and Hamilton. How about a greater representation of the rest of the companies who play a fair role in employing up to 191,000 tradespeople and staff nationwide? Again, if the Report didn’t see fit to visit the companies in Dargaville or Dannevirke or Invercargill and concentrated on a select few then what is the state of manufacturing in New Zealand and how can the small success story be recognised?

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NZ Manufacturer March 2014

CONTENTS DEPARTMENTS 5 BUSINESS NEWS 6 MANUFACTURING TECHNOLOGY 7 MANUFACTURING TECHNOLOGY 8 MANUFACTURING TECHNOLOGY 9 CASE STUDY 10 DEVELOPMENTS 11 DEVELOPMENTS 12 DEVELOPMENTS 13 LEAN MANUFACTURING 15 THE FUTURE OF MANUFACTURING 16 THE FUTURE OF MANUFACTURING 18 THE FUTURE OF MANUFACTURING 19 THE FUTURE OF MANUFACTURING 20 PRODUCT NEWS

ADVISORS Larry Wiechern

Metals New Zealand’s first chief executive. Callaghan Innovation to expand incubator system. 3D Printer Delivers Innovative Export Products.

Is the Manager of the Maintenance and Reliability Centre, Manukau Institute of Technology.

“Where’s the “Rapid” in Rapid Prototyping?

Automating structural steel fabrication. KiwiNet Awards celebrate commercialisation excellence.

Craig Carlyle

Clever tax service helps maintain high growth.

Solution developed here to improve ATV use. Competenz calls for engineering scholarship applications. Energy costs sit low on radar.

ICeD Launches Solution for SolidWorks. Seismics and the City 2014.

10 13

Don’t change for Lean’s sake.

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

Catherine Beard

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

3D puzzle toy designed with the help of additive manufacturing. Students invent adapter for 3D printing. Amsterdam canal house built with 3D printer. Scientists build thinnest possible LEDs.

Brian Willoughby

Is president of the NZ Manufacturers and Exporters Association and managing director of Contex Engineers and Plinius Audio.

Laying the groundwork for a manufacturing revolution. New-Shoring and manufacturing trends. Will 3D printing cause traditional manufacturing to collapse? Injection Moulders chosen for new BMWi3. Portable appliance testers complete more tests a day. Eco Alkalin carbon neutral battery. Innovative 5 layer pipe extrusion concepts.

22 PRODUCT NEWS 23 DEVELOPMENTS 24 LEAN MANUFACTURING 26 MATERIALS HANDLING 28 BUSINESS NEWS 29 ENERGY REPORT 30 BUSINESS NEWS 31 REAR VIEW

Earth Ground Testers speed verification. K-Seal for radiator leaks. Christchurch developers urged to consider energy. National Maintenance Conference planning underway. Why Lean fails to make industry competitive.

Lifting system restores Equilibrium of Christchurch building. Exporters feel better, but cautious. Business owners look inwards for success. Procurement means savings to the bottom line. Waikato Management School to host Global Leaders Forum. New appointment at Hill Laboratories.

Lewis Woodward

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.

Professor John Raine

Is Head of the School of Engineering and Pro Vice Chancellor – Innovation andEnterprise at the Auckland University of Technology.

Bruce Goldsworthy

An advocate for NZ manufacturing for 40 years, he was Chief Executive of the Auckland Manufacturers Association for seven years He has been Manager of EMA’s Advocacy and Manufacturing Services, and lately manager for Export New Zealand in the north.

Getting what you pay for.

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NZ Manufacturer March 2014

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MEDIA HAWKES BAY LTD T: +64 6 870 4506 F: +64 6 878 8150 E: mediahb@xtra.co.nz 1/121 Russell Street North, Hastings PO Box 1109, Hastings, NZ NZ Manufacturer ISSN 1179-4992

Vol.5 No. 2 March 2014

A Cure for Everything And I don’t mean the common cold. I’m talking about 3D. There are a lot of examples abounding for the use of 3D technology. In this issue of NZ Manufacturer we discuss its use in making a house in Amsterdam; in the last issue it was chocolate in America. Who knows, with the right software we may be able to give up going to the supermarket. The mind boggles... How about our politicians? Can we reconstruct John Key and David Cunliffe from 3D software and get the politician we deserve to lead the country? We could make big changes to Winston and Judith Collins; help them to stay on track, do things better for the good of us all. On a more serious note, we stand to benefit from a 3D printing facility that creates objects from titanium and other metals, enabling the development of a range of new export products. Callaghan Innovation and TIDA, the Titanium Industry Development Association (see Page 6) have jointly purchased a Selective Laser Melting Instrument, now in operation at TIDA’s Tauranga site. 3D printing techniques (or additive manufacturing) are very efficient ways to transfer complex industrial designs to commercial production. And it is cost effective. There is lots of other great reading in this issue which focuses on manufacturing technology and the future of manufacturing and what these trends mean for our manufacturers. NZ Manufacturer is counting down to EMEX 2014 which is being held at ASB Showground’s, Auckland from 27-29 May. It’s the one event every two years which has on display the latest in manufacturing equipment and services. Business leaders from around the country attend and it is a great place to connect with inspiring business speakers at a seminar series who interact with the audience to discuss the key issues, changes and trends for NZ business. We have a special Preview in April issue and if you are exhibiting and want to take part, send me an email.

Doug Green 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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NZ Manufacturer March 2014

Work spares us from three evils: boredom, vice, and need.

BUSINESS NEWS

– Voltaire

Metals New Zealand’s first chief executive Gary Hook has been announced as the first Chief Executive of Metals New Zealand. Gary comes from a career in the steel industry spanning 36 years with New Zealand Steel, BHP Steel and BlueScope in NZ, Australia and Asia. His experience in senior roles range from general management, business development marketing, manufacturing and processing, to supply chain, transport and mining.

The CEO role has an advocacy objective on common industry issues facing the various Metals NZ member associations, and will be based out of HERA House in Manukau, Auckland.

on Building Materials procurement. These Government projects in the procurement space will be ongoing and will be a priority focus for Metals NZ in the next few months.

Whilst part-time initially, the objective will be to prioritize and focus advocacy efforts on important metals industry business issues, demonstrating the benefits of such a focus and position to grow membership and develop on the level of industry support provided.

These actions ensure our metals-based businesses are kept well-informed of the intentions of Government, and the various state-controlled entities, and have the chance to contribute to the processes of informing on policy matters about the needs of our industry and issues that are faced.

Already Gary has been involved in preparing submissions on the All of Government procurement initiative and the MBIE-led project

The Metals NZ Executive welcomes Gary to this challenge, and looks forward to him working closely with

the Metals NZ member associations to secure the future of our industry.

Callaghan Innovation to expand incubator system Callaghan Innovation is inviting applications from businesses wishing to become part of an expanded network of business incubators throughout New Zealand. The network will include a new type of technology-focused incubator aimed at encouraging more innovative, complex technology-based start-ups. These will

Commercial & industrial growth

be in addition to the founder-focused business incubators already enhancing the survival and growth of early stage, high-growth businesses. A request for proposals document (RfP) follows extensive consultation with the New Zealand start-up support community, the Ministry of Business, Innovation and Employment, New

Zealand Trade and Enterprise, the New Zealand Venture Investment Fund, and international experts including Israel’s leading thinker on technology incubators, Oren Gershtein. The RfP seeks proposals from parties interested in being appointed founder-focused or technology-focused incubators.

Employment growth

The new type of technology-focused incubator will be a privately owned business focused on the commercialisation of complex intellectual property primarily sourced from publicly funded research organisations, such as universities and Crown research institutes.

Economic output

Crime rate East Tamaki is the largest industrial precinct in Auckland with 2000 businesses and a growth rate higher than the regional average. getba.org.nz

getba Greater East Tamaki Business Association Inc.

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NZ Manufacturer March 2014

MANUFACTURING TECHNOLOGY

If the wind will not serve, take to the oars.

– Destitutus ventis, remos adhibe – Latin Proverb

3D Printer Delivers Innovative Export Products New Zealand businesses stand to benefit from a top-class 3D printing facility that can create objects from titanium and other metals, enabling the development of a range of new export products. Callaghan Innovation and the Titanium Industry Development Association

(TiDA) have jointly purchased a Selective Laser Melting instrument, now in operation at TiDA’s Tauranga site. This instrument has the ability to make state-of-the-art 3D objects by “printing” them using metal powders, such as titanium alloys and stainless steel. Callaghan Innovation’s Advanced Materials research team will work with TiDA to use the Selective Laser Melting

machine for research and to help businesses commercialise products. “The future of high tech manufacturing is driven by 3D printing,” says Dr Ian Brown, Callaghan Innovation’s Materials Research Manager. 3D printing techniques – known as Additive Manufacturing - are very efficient ways to transfer complex industrial designs to commercial production. “Titanium is tremendously expensive and traditional ways of machining something from this material involved throwing away 90% of the metal. Using 3D printers, you build the product layer by layer, with very little material wasted,” Dr Brown says. TiDA CEO Warwick Downing says manufacturing using advanced metal alloys is very cost effective when using smart design and clever technology, creating high growth industry that has tremendous potential for New Zealand. “TiDA has well-established skills at designing for and the application of

Warwick Downing of TiDA and Ian Brown of Callaghan Innovation.

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3D printing in metals. New Zealand is leading the way in research that supports this industry,” Mr Downing says. “Having the Callaghan Innovation team onsite will promote closer working ties and will enhance our materials research capability. We are already seeing the results with new products for companies already being worked on and a faster product turn-around through the combination of the two sets of skills.” The 3D technology is delivering results for NZ companies, and leading to a range of new export products. For example, the Team New Zealand safety knife was designed and manufactured at the TiDA facility as well as a range of products that are now being manufactured using the process rather than traditional manufacturing methods. The 3D printer is only the second of its kind in New Zealand – both instruments being located at the TiDA labs. The additional skills available as a result of the Callaghan/TiDA collaboration make the TiDA site the most advanced commercially focused facility in Australasia, and a global leader in the technology.

NZ Manufacturer March 2014

The best way out is always through. – Robert Frost

MANUFACTURING TECHNOLOGY

Where’s the “Rapid” in Rapid Prototyping / 3D Printing? -Leslie Langnau A common request from many users of 3D printers is “When will 3D printing be faster?” But the need for speed may not always refer to print time. Noted Jon Cobb, Executive Vice President, Marketing at Stratasys in a recent interview, “the real point may be how do I get to use my part faster?” 3D printing speed involves several factors, two of which are—how can the material deposition/curing process be made faster, and how can you speed up the post processing functions, including removing support material and polishing or other finishing operations? To actually print a part faster will likely require a few modifications in the mechanical components that make up a 3D printer, such as actuators and motors. Depending on the printer, better quality mechanical components will be needed, especially as more speed introduces

phenomena such as resonance that must be addressed for a smooth, well-made part.? Aside from that, there are ways to tweak the entire 3D printing process so that you gain the use of your part more quickly. Continued Cobb, one way is through the program software where you program

the part build and any supports. Check the quantity and quality of support structures for the printed part—are they too many, too dense, and so on? Noted Cobb, one customer saw a 30% increase in speed by using sparse supports. “The machine did not go any faster, but the whole process was faster because of less material laid down and consumed.” For some parts, you could print support structures differently to save time, or you could alter the print size of the structures to print faster. Using a larger bead of filament, for example, can deliver improvements in speed. But Cobb also noted that higher productivity is not just about speed, it’s also about efficiency—making the machines more efficient. Another opportunity involves the post process. What if you were able to clean a part in five minutes as opposed to an hour? Keep your eyes on this part of the 3D printing process. Vendors are focusing on ways to shave time from post processing.

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NZ Manufacturer March 2014

MANUFACTURING TECHNOLOGY Automating structural steel fabrication Laser-like cuts at high speeds Advancements in high-definition plasma cutting have long enabled structural steel fabricators to use the technology in their shops. ART uses HyPerformance technology by Hypertherm, which, combined with ART’s machine motion control systems and software, takes plasma cutting to a whole new level.

ART releases the Metaltek XB1200 10-axis structural steel fabrication cutting system – slashing production times, material handling and manual labour. As budgets are getting tighter, customers of structural steel fabrication shops are getting more cost-conscious and it is unlikely they will pay more for work. As a result, shops are looking for ways to reduce costs by leveraging the latest technology and lean manufacturing concepts to gain an advantage. Reduced cost of labour and material handling through automation combined with increased output will take fabrication shops’ productivity to higher levels. Advanced Robotic Technology (ART) has created the Metaltek XB series 10-axis structural steel fabrication system. “We developed the Metaltek XB series to answer the need for fully automated structural steel processing in one machine,” company Director David White explains. “To eliminate as much manual labour as possible we included full material handling and all functions are automated and simple to operate. The whole machine is designed to reduce labour and double handling while increasing productivity and profits.”

4-sided plasma processing With a footprint of 3750 x 3600 mm, Metaltek XB offers full 4-sided plasma processing for the steel fabrication industry, advanced CNC robotics, high-definition plasma cutting and in-house developed user-friendly software and control interface. Moreover, 3-axis material handling conveyor systems and cross-transfer conveyors for load and unloading eliminates a large percentage of lifting, flipping and moving of steel members between machines. The machine is suitable for hot and cold rolled structural steel profiles, including RHS, SHS, UB, UC, PFC, TFC, EA and UA, with maximum beam cross sections of 1260 x 600 mm. All copes, mitres, square cuts, slots and holes can be cut automatically. Full bevel weld preps can be applied to all surfaces including underneath. Plasma etch marking is also a standard feature for part numbers, welding instructions, alignment marks etc. Moreover, ART’s ProfileShop V4 touchscreen controller combines ease of use with advanced features to automate all cutting settings, resulting in optimum cut quality. The advanced CNC reads industry standard DSTV and DXF drawing files, supporting software packages such as Tekla, StruCad, AutoCad and many more. www.nzmanufacturer.co.nz

Specifically, Hypertherm’s True Hole technology uses a specific combination of cutting parameters optimised for steel applications. The end result shows an up to 50% improvement in the shape of the hole. At the same time, taper and dings are virtually eliminated on holes with an equal diameter to thickness ratio. “Hypertherm’s True Hole cutting technology produces significantly better hole quality than what could previously be achieved using plasma, narrowing the gap with laser,” says David White. “This is delivered automatically without operator intervention, to produce unmatched plasma hole quality that can now rival high dollar laser systems.” The Metaltek XB1200 features a Hypertherm HPR260XD plasma power system, which gives precision at unprecedented speed, yet extends consumable life beyond competing plasma systems. Automatic surface tracking along with the ART 3D motion controller ensure accurate pierce and cut heights. The bevel torch head can achieve up to +/-50° on all faces, while ART recommends a maximum cutting bevel of 45°.

Automation saves time and money Moving long, heavy structural members around is difficult and costly and adds no value to the product. As a result, transfer and handling have to be kept to a minimum, and structural steel fabricators now realise that it doesn’t make sense to pay people for non-value-added activity of handling beams. ART’s Metaltek XB features a CNC-controlled 3-axis in-feed and out-feed roller conveyor system, an integrated automatic hitch-feed mechanism, as well as CNC cross-transfer drag conveyors for loading and unloading. The drawbridge is able to extend 2.5 metres into the cutting envelope to support the material, clamp and draw for hitch feeding, and roll out the finished part. The drawbridge feed and synchronised rollers are both servo controlled to ensure highly-precise material feeding. The CNC controller can also automatically feed the next piece of material from the cross-feeds onto the in-feed roller conveyor for automatic cutting. Inside the cell work area, the machine automatically senses material dimensions, and an extra-articulated robotic arm performs the desired cuts, even underneath the beam. In conjunction with the gantry system, the arm achieves unparalleled reach.

Fortune favours the brave. – Publius Terence

KiwiNet Awards celebrate commercialisation excellence The hunt is on for innovative people and technologies changing the research commercialisation landscape in New Zealand. The second annual KiwiNet Research Commercialisation Awards celebrate the achievements of individuals, teams and organisations, who commercialise publicly funded research. “We’re looking for great stories about turning scientific discovery into commercial success,” says KiwiNet General Manager Dr Bram Smith. “A tremendous amount of work goes on behind the scenes in universities and crown research institutes transforming clever research into innovative products and services. We want to honour these game-changing achievements.” Smith says these innovations will play a vitally important part in our future, being integral to the formation of new companies that will grow our economy. The Kiwi Innovation Network, a consortium of 13 universities, Crown Research Institutes and a Crown Entity, was established to boost commercial outcomes from publicly funded research. The Awards are the pinnacle of KiwiNet activities, designed to build knowledge and inspire research commercialisation success. The 2014 KiwiNet Research Commercialisation Awards categories are: • Commercialisation Collaboration Award • Researcher Entrepreneur Award • Research & Business Partnership Award • Commercial Deal Award • Supreme Award • People’s Choice Award Winners will be announced at an awards reception, on 11 June in Auckland, sponsored by Minter Ellison Rudd Watts and Sciencelens photography.

NZ Manufacturer March 2014

Experience is the child of thought, and thought is the child of action. – Benjamin Disraeli

CASE STUDY

Clever tax service helps maintain high growth Clever tax service helps maintain high growth One of New Zealand’s most successful tool machinery manufacturers could not have continued on a high growth programme without an innovative product that helps manage cashflow, called Pay My Tax. When Teknatool New Zealand closed its manufacturing facility in New Zealand and moved to Qingdao in China to be closer to its markets in 2006, the well-established New Zealand engineering business (known for working with such brands as Black & Decker) was launched along a meteoric global growth path. Sales grew rapidly. And opportunities began opening up. Then in 2009, Teknatool also opened a research and development department in Quingdao. But high growth and developing the business in other countries meant cashflow was tight. Teknatool could not have continued to take advantage of these opportunities had it not been for a smart tax pooling product from Tax Management NZ (TMNZ). Pay My Tax lets businesses defer their provisional tax payments by up to 18 months, to a time that’s more convenient for the business. By leaving cash in the business for as long as possible, businesses can spend money when it is needed to buy materials or develop without incurring huge tax liabilities in the form of the IRD’s use of money interest and late penalties.

says. “And other suppliers give us just seven days. We fought long and hard to get seven days. It’s a very different market over there. It’s about really making sure you have got cashflow so that you get the sales. Tax Finance makes it a lot easier.” “Tax Finance (now Pay My Tax) has given us opportunities we wouldn’t have been able to take advantage of. It’s definitely been of huge benefit to us. We can budget by putting a reasonable amount of money aside for tax each month and pay later. It’s incredibly easy to use. And it takes such a lot of hassle out of paying tax.” Latimer says Teknatool has a natural hedge that minimizes its exposure to volatile foreign exchange markets by buying and selling in US dollars. But another New Zealand company, Stonegrill, that doesn’t have this hedge in place and Pay My Tax has been useful. Stonegrill has created a cooking system that offers a unique interactive dining experience for diners where meals are served cooking at the table on super-heated natural volcanic stones. Pay My Tax lets Stonegrill NZ take advantage of the exchange rates to import materials when they are most favourable. Tony Scott of Stonegrill explains: “Being able to better manage the timing of our tax payments and cash availability has allowed us (as importers) to purchase internationally when the exchange rates are most

One of the machine operators at QMT carrying out an inspection of a chuck line from an automated production line.

favourable and to obtain discounts by paying at the time of order. We have cemented the relationship with our own valuable clients by being able to pass these considerable savings on to them. This tax management option simply pays for itself in more ways than one. Stonegrill has been using TMNZ’s services consistently for about five years now after being referred by one

of their own clients. “This option has made our company and personal tax management a breeze and has taken the stress off of our cashflow.” Latimer adds, “We wouldn’t think about doing it any other way. I would recommend Pay My Tax to other companies that are on a similar growth programme. If you can budget for tax, it makes life a lot easier.

The current IRD use of money interest (UOMI) rates are 8.4% for underpayments and 1.75% for overpayments. Missed payments can be subject to late payment or shortfall penalties. And taxpayers can be charged interest even if they had not earned the income by the time the provisional tax payment was due - because the IRD operates with the benefit of hindsight. When Teknatool discovered TMNZ three years ago, it made it much easier to manage their cashflow, says financial director Margaret Latimer. “At the same time as we were pouring money into a high growth path in overseas markets, we had to pay for raw material, mainly steel bearings and fastenings from both Russian and Chinese suppliers. “Many of our suppliers demand payment virtually straight away,” she

Teknatool’s woodturning lathes equipped with DVR technology waiting for final inspection before being dispatched to customers around the world. www.nzmanufacturer.co.nz

NZ Manufacturer March 2014

DEVELOPMENTS

Do not wait to strike till the iron is hot; but make it hot by striking. – William B. Sprague

Solution developed here to improve ATV use Blue Wing Honda have engaged Blackhawk Tracking Systems to develop a world-first solution to help improve ATV safety with a focus on driver behaviour and communication. Called Farm Angel, the Blackhawk technology is being trialled by Landcorp Farming Ltd, which is committed to improving safety on farms. Landcorp will trial the equipment on around 60 ATV and Side by Side vehicles. “This is a unique solution which will enable rider/driver behaviour to be monitored, modified and improved” says Blue Wing Honda General Manager Alan Petrie. “The aim is to save lives before they need to be saved, but should an accident unfortunately occur, Farm Angel will also assist in the recovery of seriously injured or trapped riders. “We have been working with Blackhawk for some time to create the right system that not only helps the ATV rider get out of trouble quickly by sending an immediate automated alert to a first response Call Centre, but

also improves on-farm communication while giving peace of mind to farmers, their employees and their families.”

are breached and hours of use can also be tracked and signals given when servicing is required.

Initial feedback is that it’s an idea that fulfils several needs so we are proceeding to an on-farm trial with Landcorp, says Petrie.

The device also determines who can operate an ATV with a key-fob or medical wristband that activates the ignition, thus stopping use by underage or non-trained riders.

“We believe this is a world-leading initiative with multiple safety features that will lead to significant improvements in driver behaviour, enhance on-farm communication and, ultimately, help reduce accidents,” says Blackhawk chief executive Andrew Radcliffe. Providing 100% on-farm coverage, Farm Angel includes a GPS/satellite tracking device, route tracking and monitoring to benchmark rider/driver behaviour, including acceleration, speed and tilting. Alerts are automatically activated if pre-set limits

If the ATV rolls or tips right over, emergency services or a pre-determined number will be automatically alerted, enabling a fast automated response to any remote location to attend to a trapped or injured rider. Drivers can also manually send requests for assistance via the fob or smartphone application. “All the information gathered can be displayed to the farm manager through an online or mobile interface, helping with rider behaviour and safety plus the security, servicing and overall management of the quad bike,” says Radcliffe. ACC claims for ATV accidents in 2013, which include quad bikes, farm bikes, 4 wheeler and 3 wheeler – amounted to more than $3.2 million. The vehicles are involved in about 850 on-farm injuries and five deaths a year, with coroners repeatedly calling for easy-to-activate alarms or communications systems to be

introduced. “We’ve taken that message on board and with Blackhawk and believe we have created an ideal solution,” says Petrie. “Blue Wing Honda has been a pioneer in ATV innovation and safety for decades and that continues with Farm Angel. “Eventually we would like to see Farm Angel standard on every new ATV and available to install on any farm vehicle, similar to when seat belts became compulsory for all passengers in the 1980s. It’s about protection and prevention and using technology to achieve that. “But we do still strongly recommend ATV drivers undertake approved training courses, wear helmets at all times and follow all other manufacturers’ guidelines.” Landcorp Chief Executive Steven Carden says that Landcorp have been proactive in working to reduce the number and impact of accidents involving ‘Quads’ over the last two years. “We see Farm Angel as being a great extension to our stability study which we used to inform riders of the capabilities of their vehicles, especially when towing or carrying loads. We also acknowledge that rider behaviour is a major cause of accidents involving the quad, and see Farm Angel as a potentially powerful tool in identifying areas where further rider education is required,” said Carden. Once the trial is complete, Blue Wing Honda and Blackhawk plan to market Farm Angel throughout New Zealand and internationally.

Competenz calls for engineering scholarship applications The Competenz Scholarship 2014 is now open for applications. Competenz has four scholarships available which cover the cost of an engineering qualification at Level 5 or 6.

Connor was awarded a scholarship in 2013. “I applied for this scholarship because I have a young family and have very little extra money,” says Connor. “Receiving this scholarship meant a lot to me because if I didn’t receive it I most likely wouldn’t have been able to sit the qualification.”

This is the perfect opportunity to advance your career to the next step after completing an apprenticeship. A scholarship can be a “huge help” says Connor Farrell from M A Brown Engineering, who is studying toward a National Certificate in Mechanical Engineering (Level 5) in Fabrication.

Competenz scholarships are for those completing or wanting to complete a Level 5 National Certificate in Mechanical Engineering or a Level 6 New Zealand Diploma in Engineering Practice (NZDEP). To be eligible for the scholarship candidates must meet any prerequisite requirements for the

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qualification. This year the scholarships are open for application until the 30th of April. “Anyone who has already enrolled into an eligible qualification from the 1st of May 2013 will be able to apply. Or if you intend to enrol but haven’t done so yet you will also be eligible,” says Fiona Kingsford, General Manager Trades, Competenz. “After achieving this qualification I plan on working towards a higher leadership role such as head foreman,” says Connor. “Then, long term, I want to branch out on my own and start my own engineering business.”

Those wishing to apply for a 2014 Competenz Scholarship can find an application form at competenz.org. nz. For more information about the scholarship or to discuss whether you are eligible email Phil Hurford on p.hurford@competenz.org.nz .

NZ Manufacturer March 2014

Experience is the child of thought, and thought is the child of action. – Benjamin Disraeli

DEVELOPMENTS

Energy costs sit low on the radar of NZ businesses Rising energy costs sit low on the radar of New Zealand businesses, according to the latest Grant Thornton International Business Report survey of 3500 business leaders. The survey showed that only 10% of New Zealand businesses expect rising energy costs to constrain business growth in 2014 compared with 35% of businesses globally. Only Norway (4%) and Finland (8%) were less concerned than New Zealand out of the 45 countries surveyed. Alastair Boult, National Director, Government Advisory at Grant Thornton New Zealand Limited, said that while rising energy costs was the second largest concern for international companies, behind economic uncertainty, many New Zealand businesses do not seem to share the same concern towards energy savings. “This is important in light of the recent media attention on cheap loans for domestic solar initiatives. New Zealand’s size, lack of scale and large number of small and medium-sized enterprises (SMEs) mean that our businesses are not as green in their actions compared with other countries, even though we may think we are,” said Boult. “This complacency is a concern. Electricity demand at the moment may be flat, but the ever-strengthening economy will put pressure on this sector. Energy saving is all about protecting and enhancing the bottom line and any education or advice on ways that businesses can save money will be

a boost to the economy as a whole.” On a macro scale New Zealand spends about $18 billion per year on energy and 20% of that is wasted, according to estimates from the Energy Efficiency and Conservation Authority (EECA). “This highlights the fact that New Zealand is nowhere near as energy efficient as it should be,” he said. “However, we are already very strong on the renewable energy front. In 2012, renewable energy made up 37% of New Zealand’s Total Primary Energy Supply, which is high by international standards, the third highest in the OECD, compared with a global average of only 16%,” he said. The survey highlighted that in the long-term, renewables have the potential to flatten energy costs for both businesses and consumers.

However, in the short-term, renewable energy tends to be expensive and requires government subsidies to make it investible. “A good example of this is how the UK Government has offered a price of £155 ($250) per megawatt hour for offshore wind energy which is around three times the current wholesale price of electricity. “Energy costs account for significant and rising chunks of both household and business outlays. Understandably, consumers and companies are clamouring for lower prices now. But this acts as a major disincentive for governments to take the long-term perspective needed to support the move to greener energy sources. “In Europe, the EU has recently announced a proposed 40% cut in emissions by 2030, which includes an EU-wide target of 27% renewables. At the moment it is not clear how this would be translated into national targets, potentially giving less willing nations room to manoeuvre around these proposed targets .“The EU has also announced a target of 25% energy efficiency, but, significantly, this is described as non-binding, implying that it is harder not to use energy than to find new technologies to generate it. This seems counter-intuitive, to say the least. “The global picture on energy costs is far from uniform. “In Japan, where nuclear provided 30% of the electricity supply before the Fukushima disaster, four in five businesses are now worried about the rising cost of energy.

“By contrast, this is a concern for just one in seven businesses in the United States, where the shale revolution has actually lowered energy costs for many businesses. In Europe, it is telling that businesses in Germany (36%), where the government is phasing out nuclear, are much more concerned with rising energy costs than peers in the UK (22%), where new stations such as Hinkley Point are being commissioned, although politicians in the UK appear to fear the political fallout from rising costs just as much as their German counterparts. “Equally interesting are the Nordics where just 4% of businesses in oil and hydro-rich Norway are worried about increased energy costs; while only 12% of businesses in Finland are, which has no fossil fuel resources but significant amounts of nuclear power, hydro and biomass. “So what’s the answer? Whether real or perceived, the barriers around the lack of information about opportunities, lack of organisational capability and lack of available funding within organisations, even for fast payback projects, need to be removed. “And there should be an increase in funding and other assistance to help ensure the potential gains are realised, in the first instance, for the largest 200 energy-using organisations in New Zealand. But given the large number of SMEs in New Zealand, the Government should also continue to look at ways provide assistance to these smaller businesses,” said Boult.

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NZ Manufacturer March 2014

DEVELOPMENTS

Nothing will ever be attempted if all possible objections must first be overcome. – Samuel Johnson

IC3D Launches Steel Fabrication Seismics and the City 2014 Solution for SolidWorks - Building Momentum IC3D, a leading provider of hardware and software solutions for the Manufacturing, Architectural and Engineering industries, has launched IC3D Steel – the first SolidWorks-based application designed for modellming and detailing steel constructions. Distributed nationally in Australia and New Zealand by Intercad – the largest SolidWorks distributor in the region – IC3D Steel builds on a longstanding and collaborative partnership with Intercad to find a dedicated SolidWorks solution that saves time and cost in the design, development and manufacture of steel fabrications.

IC3D Steel saves time and cost in the design, development and manufacture of steel fabrications. IC3D Steel manages the key phases of the steel construction process, from the creation of three-dimensional models to the compilation of the Bill of Materials and drawings of the steel constructions. The application integrates seamlessly with SolidWorks and includes an SQL database that permits advanced and coherent project management in the SolidWorks environment. Mike Gilliland, IC3D Software and Consulting Services Manager, says existing steel construction design solutions often compromise the industry-standard SolidWorks approach. “Other modelling applications enforce a rigid workflow on the steel fabrication designer, requiring participants to install identical packages to allow teams to collaborate effectively,” says Gilliland. “IC3D Steel eliminates these restrictions. Users can create and manage information relating to the key phases of the steel construction process, from modelling

to design and assembly. “Because of its native integration with the 3D SolidWorks environment and SolidWorks file format, IC3D Steel also ensures interoperability between all SolidWorks users involved in the construction process, regardless of whether or not they all have IC3D Steel installed. We have been careful to develop IC3D Steel in collaboration with a representative group of 20 SolidWorks users, which is how we can be so confident that it will meet the needs of the ANZ market.” Other benefits include support for all common ANZ profiles and standard joints, saving hours of design time for the majority of projects that typically total hundreds of active drawings. It also features automatic part numbering to maintain accuracy, and correctly numbers identical parts as part of a sequence, complete with geometry recognition and automated geometry rules. Solutions such as IC3D Steel will offer current SolidWorks users huge benefits in terms of cost & time savings, and probably most important, ease of use so that the whole process can be simply and fully integrated. Additionally non-SolidWorks users will be able to buy a bundled SolidWorks and IC3DSteel solution that will provide them with a competitive advantage that has not been previously available. Over the next few months Intercad will be holding webinars, seminars, demonstrations and conducting a road show to showcase IC3D Steel throughout Australia and New Zealand. IC3D will also be making it available to a wider global audience since many of the product features and customer requirements are common to every region.

About IC3D IC3D is a leading innovative design technology provider for the manufacturing and construction sectors. Its mission is close the gaps on what it takes to be a truly 3D business in today’s fast evolving virtual world. IC3D assists businesses to become more profitable by offering products and services that will allow them to finish their projects sooner, saving time and money and increasing their customer’s satisfaction with their business by offering hardware, software, consulting services and recruitment services.

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A cross sector forum focusing on the post-quake recovery process, progress, problems and solutions will be held in Christchurch on Friday 28 March. Seismics and the City 2014 Building Momentum is the third in an annual series for public and private sector and community organisations involved or interested in the rebuilding of Greater Christchurch in the wake of the quakes of 2010-11. The event, at the new Rydges Latimer Hotel on the fringe of the new city core, is a timely opportunity for organisations to update themselves on latest developments, voice feedback and help turn visions into strategies and action plans. Forum convener Lyall Lukey from SmartNet says, “While the rebuild is finally starting to ramp up there is traffic congestion on the on ramp and the need for a more integrated approach to get things flowing. The challenge is to balance speed and momentum with direction and getting it right.” He says that there is an obvious need for enhanced cross sector collaboration to drive the implementation of the rebuild. “The post quake recovery and renewal process should not be a spectator sport. Organisations and individuals will support what they help to create and they need to be engaged in both planning and implementation. “Imagineering always needs to precede engineering. Open dialogue not closed group think will enhance decision making and help organisations tasked with facilitating or implementing different aspects of the recovery to stay on track.” Forum topics include frank appraisals of Canterbury’s post- recovery from different perspectives and updates on the current state of play, what is in the pipeline, the main roadblocks and how they can be removed. Flooding caused by the recent heavy rain has put the spotlight on land slump, drainage and infrastructure issues partly connected to recent seismicity and highlighted the need for a systems approach to planning the new shape of Greater Christchurch as a dispersed polycentric city, with connected nodes and hubs and a leaner and more healthy heart. Peter Townsend, CECC will sketch the big picture of rebuild challenges and opportunities, Dr Kelvin Berryman, GNS will cover natural hazards and evolving risk management, Antony Gough, Hereford Holdings will outline the commercial development and building opportunities and constraints in Central Christchurch and Tom Hooper, CDC will question whether post quake Canterbury is a rockstar or a rockfall economy and outline the role of business innovation in growing the future. Some other speakers are Lianne Dalziel, Mayor of Christchurch, David Ayers, Mayor of Waimakariri District, Roger Sutton, CERA, Ian Simpson, EQC, Dr Andrew West, Lincoln University, David Freeman-Greene, Orion, Michael Rouse, Deloitte Australia, Mike Heron, Schneider Electric NZ, Dr Vivienne Ivory, Opus, Dr Rod Carr, University of Canterbury and André Lovatt, Christchurch Arts Centre. Seismics and the City 2014 is sponsored by Schneider Electric, GNS Science, Lincoln University, EQC, Orion, Deloitte, Opus International Ltd, University of Canterbury and supported by EECA, CECC and The Press. While the event is aimed at representatives of public and private sector organisations there are special rates for representatives of community organisations. For more information on Seismics and the City 2014 visit www. smartnet.co.nz

NZ Manufacturer March 2014

LEAN MANUFACTURING

Fortune favours the brave. – Publius Terence

Don’t change for Lean’s sake Change for your own business growth There is no doubt that lean thinking is driving massive changes in manufacturing processes worldwide.

products were excellent, its workforce skilled, and it had recently had good capital investment. So where was the problem? Quite simply, the company was risking missing out on a huge market opportunity unless it could shorten its lead times and increase throughput and productivity fast.

It lies at the heart of measurable improvements in quality, reliability and performance. What lean is not, however, is a magic formula that solves manufacturing issues in one easy application. Businesses that announce they are ‘going lean’ are missing the point. Lean principles work best when they are applied in pursuit of specific business goals rather than grand, general initiatives. In other words, use them first to tackle the main problems that stop your company getting where it wants to be.

Facing the issues

The truth of this is underlined by the work of a producer of gas turbines and generation packages. Part of a famous international engineering group, its

The company was realistic about its current situation: its processes and performance were variable and unpredictable. It wasn’t getting the

Within the next 25 years, it is expected that the volume of new equipment installed will equal today’s entire installed capacity. The company needed a new way of manufacturing to meet its goal - a large share of an expanding market. Lean by degrees - think smart.

volumes it wanted nor realizing the potential of its existing capacity. There was also little visibility of information at both shopfloor and at management level. Lead times were measured in double digit months; its target was the same number in weeks. It was also carrying far too much work in progress (WIP) with idle inventory stacked up behind bottlenecks across the shopfloor. Clearly, this had adverse implications for working capital.

Taking the opportunities When we were called in as an improvement partner, we estimated that a 20 percent improvement in efficiency was achievable, equating to £UK10 million per annum. When we left nine months later, the company was already making significant savings. When we went back to check progress after 18 months, annual savings had risen above £15 million. This illustrates the value of a key Deloitte principle: don’t do it for people, help them to understand how they can do it for themselves. The members of this company had not

Make sure Lean is right for your business.

just continued the process we started together but were effectively applying the principles to other areas of the business. Improvement had therefore become a normal part of the way the whole organization works. So what were the key stages of the help we provided? Basically, there were four important elements in our consultancy: • establishing the need for change • conducting reference visits to foster conviction and establish external benchmarks

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NZ Manufacturer March 2014

LEAN MANUFACTURING

When the best things are not possible, the best may be made of those that are. – Richard Hooker

• capitalizing on the opportunities quickly through pilot projects • equipping the company for the journey

Developing the attitude Since the business was not under immediate threat, the first challenge was to build recognition of the need to change and stimulate enthusiasm. We therefore mounted an extensive communications programme, including workshops to listen to the views and issues of both workforce and management. We reinforced it with visits to look at the achievements of previous clients across a variety of sectors. It helped to strengthen the message that lean principles apply regardless of the industry type. This was a crucial stage in stimulating volunteers rather than ‘pressed’ men. We jointly picked a series of pilots addressing acknowledged bottlenecks and problem areas. They were narrow in scope but right for installing lean thinking, gaining quick advantages and so building profile and credibility. This created a momentum for improvement that reached critical mass after nine months and, with sensible management, could sustain itself thereafter. Most of the bottlenecks were due to poor planning of the flow of materials. A traditional ‘sweat the asset’ outlook meant that high volumes were being produced that weren’t actually needed by downstream processes. We gradually introduced them to a new planning perspective based on just in time (JIT) principles and put into practice via a simple system of kanbans. With initiatives to reduce set-up time and a slightly more flexible approach to routine maintenance tasks, the performance improvements were rapid. Without forcing the pace, other teams were able to see that it was a better, more logical way to work.

Lean can make business easier.

Building the skills Our support programme operated at three levels: management (including the executive and sponsor); programme leaders and internal consultants. Four of our lean experts worked with a core group, embedding their knowledge and jointly planning initiatives through workshops and simulations. Internal consultants were encouraged to develop the skills needed to apply the improvements to individual cells and teams. The first projects were carried out with our guidance; on subsequent projects we acted as observers and, if needed, counsellors. At the same time, the core team underwent specific training to develop the project management techniques needed to sustain the programme. In projects of this kind, we always try to downplay the role of Deloitte. It is essential that the company’s own people are the visible drivers of the project. We offer quiet, practical advice until they have confidence in their

own judgement. The Divisional Operations Director commented: “At the end of nine months, we didn’t notice you had gone.” To our lean team, it’s confirmation that they did their job properly.

Reaping the benefits So what are the tangible differences in the way this company is now operating? Firstly, they have a strong sense of a common goal: to generate the extra capacity to fill a market need. They also have a means of meeting it. They are now keenly aware of the dependencies between units, pursuing joint improvement rather than individual targets. Product velocity is three times faster, measured in weeks and not months. There has been a 40 % reduction in working capital, achieved without reinvestment in plant. And, most importantly, where once there were pockets of continuous improvement, it is now a way of life. - Deloitte

Being Lean has its challenges. www.nzmanufacturer.co.nz

NZ Manufacturer March 2014

He who hesitates is lost. – Proverb

THE FUTURE OF MANUFACTURING

3D puzzle toy designed with the help of additive manufacturing In the mid-1970s, the Rubik’s Cube became one of the world’s most popular toys and by January 2009 more than 350 million had been sold. Now, a worthy successor has arrived that could only have been created using additive manufacturing (AM) or 3D printing technology. The new Marusenko Sphere is both a 3D logic puzzle and an educational toy. It is available in 10 colour schemes and five levels of difficulty, depending on the configuration and colour combination of its 32 exterior pieces, which are supported by 22 internal elements. The puzzle is solved using nine different types of movements: two meridional and perpendicular to each other, one equatorial, and six polar. Rapid prototyping from plastic powder in an EOS Formiga P 100 additive manufacturing machine played an important role in making the toy a reality. When the design phase of the sphere in CAD was complete, electronic simulation had to give way to testing of a physical model. AM was the logical approach to producing prototypes, due to the toy’s complexity, the need to make mid-process adjustments to the shape of the 54 pieces, and the need to avoid adhesive, springs, screws, or shafts to promote child safety. The prototypes had to be tested for both physical and mechanical durability as well as functionality. The many stages of adjustments to geometry and tolerance were made in the system that produces plastic parts from polyamide powder, layer by layer, directly from CAD data within a few hours. Multiple trial and error tests were performed to refine the toy’s mechanics until the final level of perfection was achieved. The flexibility and speed of the AM machine were essential for producing the successive prototype iterations cost effectively and quickly. The process was key to ensuring the success of the final, sales-ready product, whose function is so highly dependent on its components’ geometry and fit. The rapid prototyping method not only made creation of the toy possible, but also led to cost-effective injection mould manufacture by allowing the behaviour of the additive manufactured PA 2200 plastic toy to be compared with the hypothetical behaviour of the material after moulding.

Students invent adapter for 3D printing in full colour Printing in full colour is generally a privilege limited to professional and high-end consumer 3D printers. Spectrom could change that. 3D printing is generally a monochrome affair. Full-colour printers are expensive, so the more casual user is likely stuck printing in one or two colours. Cédric Kovacs-Johnson and Charles Haider, both chemical engineering undergraduates at the University of Wisconsin-Madison, say they have come up with a solution: a sub-$US100 device that upgrades desktop 3D printers to print in a full rainbow of colours. They call it Spectrom. The system is compatible with fused deposition modelling 3D printers that use a standard-size spool of filament. FDM printers melt string-like plastic bit by bit and lay it down in layers to create an object. Spectrom adds dye to the plastic as it melts, allowing printers to shift between colours. “What we find really innovative in our approach is we went back to the roots of paper printing and we said, ‘How did they accomplish a range of colours?’” Kovacs-Johnson said. “We can print everything from dark blue to pink to red and everything in between.” Desktop 3D printer makers have generally gotten around the one colour problem by adding more than one print head. botObjects, a desktop printer maker that has been teasing the community for years with its full-colour printing abilities, has revealed that its machine works by combining different pre-coloured filaments. Spectrom doesn’t require a specialised printer to work. The idea is that you install it on your existing printer and you’re ready to go. Your computer outputs code that tells the device when to switch between colours, and your printer operates as if it was printing with a regular filament spool. The duo didn’t arrive at the method immediately. During a year and a half of development, they tried combining different colours of filament and different dyeing methods. They experimented with both ABS and PLA plastic. “It was just a whole ton of trials before we looked at something and said, ‘Oh! That works exactly how we thought,’” Kovacs-Johnson said. Their invention won them two first place prizes at UW-Madison’s Innovation Days competition last month. Haider and Kovacs-Johnson now have a patent pending for Spectrom and are looking at bringing more people onto the team. They are considering working with larger companies or launching a Kickstarter campaign. Haider said that at the end of the day, they are hobbyists too, and as a result are focused on making sure it is compatible with any printer. “We want to get it out to as many people as possible,” Haider said.

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NZ Manufacturer March 2014

Constant dripping hollows out a stone.

THE FUTURE OF MANUFACTURING Scientists build thinnest -possible LEDs March 9 in Nature Nanotechnology. Most consumer electronics use three-dimensional LEDs, but these are 10 to 20 times thicker than the LEDs being developed by the UW.

Most modern electronics, from flat-screen TVs and smartphones to wearable technologies and computer monitors, use tiny light-emitting diodes, or LEDs. These LEDs are based off of semiconductors that emit light with the movement of electrons. As devices get smaller and faster, there is more demand for such semiconductors that are tinier, stronger and more energy efficient. Scientists have built the thinnest-known LED that can be used as a source of light energy in electronics. The LED is based off of two-dimensional, flexible semiconductors, making it possible to stack or use in much smaller and more diverse applications than current technology allows.“We are able to make the thinnest-possible LEDs, only three atoms thick yet mechanically strong. Such thin and foldable LEDs are critical for future portable and integrated electronic devices,” said Xiaodong Xu, a UW assistant professor in materials science and engineering and in physics.Xu along with Jason Ross, a UW materials science and engineering graduate student, co-authored a paper about this technology that appeared online

“These are 10,000 times smaller than the thickness of a human hair, yet the light they emit can be seen by standard measurement equipment,” Ross said. “This is a huge leap of miniaturisation of technology, and because it’s a semiconductor, you can do almost everything with it that is possible with existing, three-dimensional silicon technologies,” Ross said. The UW’s LED is made from flat sheets of the molecular semiconductor known as tungsten diselenide, a member of a group of two-dimensional materials that have been recently identified as the thinnest-known semiconductors. Researchers use regular adhesive tape to extract a single sheet of this material from thick, layered pieces in a method inspired by the 2010 Nobel Prize in Physics awarded to the University of Manchester for isolating one-atom-thick flakes of carbon, called graphene, from a piece of graphite. In addition to light-emitting applications, this technology could open doors for using light as interconnects to run nano-scale computer chips instead of standard devices that operate off the movement of electrons, or electricity. The latter process creates a lot of heat and wastes power, whereas sending light through a chip to achieve the same purpose would be highly efficient. “A promising solution is to replace the electrical interconnect with optical ones, which will maintain the high bandwidth but consume less energy,” Xu said. “Our work makes it possible to make highly integrated and energy-efficient devices in areas such as lighting, optical communication and nano lasers.” The research team is working on more efficient ways to create these thin LEDs and looking at what happens when two-dimensional materials are stacked in different ways. Additionally, these materials have been shown to react with polarized light in new ways that no other materials can, and researchers also will continue to pursue those applications.

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– Lucretiusv

Amsterdam canal house built with 3-D printer Hundreds of years after wealthy merchants began building the tall, narrow brick houses that have come to define Amsterdam’s skyline, Dutch architects are updating the process for the 21st century: fabricating pieces of a canal house out of plastic with a giant 3-D printer and slotting them together like oversized Lego blocks. Hedwig Heinsman of architect bureau Dus says the goal of the demonstration project launched this month is not so much to print a functioning house — in fact, parts of the house will likely be built and re-built several times over the course of three years as 3-D printing technology develops. Rather, it is to discover and share the potential uses of 3-D printing in construction by creating new materials, trying out designs and testing building techniques to see what works.

“There’s only one way to find out, by doing it.” of the house and part of a stairway, weighed around 180 kilograms (400 lbs). The blocks will later be filled with a foam material, still under development, that will harden like concrete to add additional weight and bind the blocks together. Dus expects to add more printers and change designs along the way, with help from Dutch construction company Heijmans, German chemicals manufacturer Henkel, and anybody else who wants to participate and can make useful contributions. The construction site in northern Amsterdam is also an exhibition, open to the public for 2.50 euros ($3.00).

“There’s only one way to find out,” she says. “By doing it.” She envisions a future in which personalized architecture may be custom-crafted on the spot, or perhaps selected from an online store for architectural designs, downloaded and tweaked. At the core of the project is a 6-meter (20-foot) -tall printer dubbed the Kamermaker, or “room-builder.” It’s a scaled-up version of the open-source home 3-D printer made by Ultimaker, popular with hobbyists. It takes the Kamermaker about a week to print each massive, unique, honeycomb-structured block, layer by layer. The first block, which forms one corner

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2014 NZ Manufacturer March 2014

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NZ Manufacturer March 2014

THE FUTURE OF MANUFACTURING

Nothing great was ever achieved without enthusiasm. – Ralph Waldo Emerson

Laying the groundwork for a manufacturing revolution For centuries, manufacturers have relied on ‘subtractive’ techniques to fabricate objects — cutting, milling and grinding away substances such as ceramic and steel. But the waste associated with traditional processing is becoming problematic as the cost of raw materials increases. In aerospace applications, for example, up to 90 per cent of high-tech alloys are machined away during component fabrication. Furthermore, devices containing intricate internal features or extremely thin dimensions are difficult to produce with conventional techniques. New methods of ‘additive’ manufacturing are emerging, however, that could potentially solve these problems and trigger radical changes in traditional economies of scale. Based on three-dimensional (3D) printing technology — which generates 3D objects from computational data by building them up in layers from materials such as plastic or metal — the approach allows rapid production of complex, customized and previously inaccessible designs. Moreover, the precise addition of material minimizes waste for a reduced environmental footprint. To help prepare manufacturers for the coming revolution in on-demand fabrication, A*STAR has launched a US$12 million Industrial Additive Manufacturing Programme, led by the A*STAR Singapore Institute of Manufacturing Technology (SIMTech). In partnership with Nanyang Technological University (NTU), a leader in additive manufacturing research, the program will advance specific technologies and training to assist Singapore’s diverse range of aerospace, automotive, marine and petroleum manufacturers in the adoption of additive manufacturing techniques — a critical step toward strengthening a sector that contributed over 20 per cent of the country’s gross domestic product in 2012. “This program aims to develop innovative additive manufacturing technologies and capabilities to transform the manufacturing landscape of Singapore,” says Tan Geok Leng, executive director of A*STAR’s Science and Engineering Research Council. “Singapore is well positioned to respond to the needs of this new growth area and introducing such advanced manufacturing techniques could rejuvenate the existing workforce. Established sectors — such as the precision engineering and aerospace maintenance, repair and overhaul industries — are poised to be the lead demand drivers.”

Answering the billion-dollar question Forecasts estimate that the market potential of additive manufacturing will expand from its current value of US$2.2 billion to US$10.8 billion in 2021. Although the business outlook is positive, there are many challenges to overcome to achieve this goal. These include the development of appropriate printing materials, machinery design and calibration and post-processing methodologies, in addition to providing workers with the necessary training.

Forecasts estimate that the market potential of additive manufacturing will expand from its current value of US$2.2 billion to US$10.8 billion in 2021. Fortunately, A*STAR is home to a wide spectrum of knowledge and expertise, making it the ideal setting in which to explore new manufacturing technologies. Accordingly, SIMTech and NTU are set to collaborate with two other A*STAR research institutes — the A*STAR Institute of Materials Research and Engineering and the A*STAR Institute of High Performance Computing — by tapping into their expertise in the modeling, simulation and production of novel materials and innovative devices. The four institutes will train students in 3D printing techniques and hope to apply their research findings to Singapore’s manufacturing industry within the next three years.

Six to watch As part of its remit, the A*STAR–NTU Industrial Additive Manufacturing Programme has identified six key additive manufacturing technologies that could benefit from sustained research. The first of these, ‘stereolithography’, operates much like an inkjet printer, except that the ‘ink’ is a liquid photopolymer that solidifies under ultraviolet laser light and joins successive layers together to form a 3D object. While this system allows for the speedy production of functional parts and prototypes, it is also prohibitively expensive due to the high cost of proprietary photopolymers. Hence, researchers are seeking out inexpensive photopolymers with improved abilities to withstand sudden impacts. Eventually, they hope to print large-format and lightweight polymer components with customizable internal structures that provide distinct advantages over current designs. ‘Polyjet’ printing is another polymer-based additive manufacturing technique gaining favor. These 3D printers have two different jetting heads —

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one that sprays an ultraviolet-curable photopolymer and another that emits a gel-like support structure, which can be easily washed away after printing is complete. The A*STAR and NTU research teams intend to use polyjet technology to produce novel geometries, such as honeycomb hexagonal cells, which are sought-after for their strength and light weight but are typically constructed through lengthy and repetitive bonding processes. The ability of lasers to achieve extreme heating and cooling rates within the near-surface regions of materials while leaving the bulk untouched makes them ideal for use in layer-by-layer assembly techniques. One such technology, ‘laser-aided additive manufacturing’ (LAAM), fabricates metal parts by controlled heating of metal powders — particularly useful for assembling high-value parts from difficult-to-machine metals, such as titanium or nickel alloys. Yet at present, LAAM is simply used in repairs and re-manufacturing. A*STAR and NTU researchers therefore plan to deploy LAAM in the fabrication of innovative, large-format structures, 2 to 8 meters long, which can be used as downhole components in the oil and gas industries or as mold and die inserts for heavy vehicle production. Another way that powdered materials can be fused together is through the ‘selective laser melting’ (SLM) and ‘selective laser sintering’ (SLS) additive manufacturing techniques. A*STAR researchers are using computational studies to develop material distribution algorithms that will reduce the need for support structures in SLM and physics-based models that address consistency issues in SLS — huge advances for both methods. The final area of focus for the A*STAR additive manufacturing program will be ‘electron-beam melting’ (EBM), which uses focused beams of electrons instead of photons of light to produce 3D metal parts from powders under high-temperature, low-pressure conditions. EBM is one of the most efficient additive manufacturing processes, producing extremely strong and distortion-free parts. However, dimensional accuracy is difficult to achieve and components often have rough surface finishes — problems that researchers intend to tackle through multidisciplinary investigations.

Maintaining Singapore manufacturing’s competitive edge With the worldwide 3D printing market now on the verge of taking off, NTU’s dean of engineering, Ng Wun Jern, notes that the Industrial Additive Manufacturing Programme will benefit companies in Singapore by providing support for scaling up and integrating the technology at a critical time in its development. “Understanding industry needs and developing innovative solutions is key to keeping Singapore’s competitive edge in today’s high-tech manufacturing sector,” says Ng. “NTU and A*STAR are well placed to make this new program a success. Together, we are poised to support our industry’s move into next-generation manufacturing.”

NZ Manufacturer March 2014

For hope is but the dream of those that wake. – Matthew Prior

THE FUTURE OF MANUFACTURING

New-Shoring and manufacturing trends You may get your product faster and cheaper, but manufacturing overseas has its pitfalls. Through a combination of one of the new manufacturing trends, “new-shoring” — creating new jobs closer to home — and smarter international manufacturing practices, small businesses are helping protect their valuable assets. When it comes to deciding how and where to manufacture your product, you’ll want to look closely at how those two things stack up against one another. In the not-so-distant past, taking your product abroad meant cheaper expenditures but inconsistent quality control. Today, with updated production facilities, cutting-edge tools, and more sophisticated design capabilities, manufacturing overseas can not only prove to be more affordable, but also more reliable. Overseas manufacturing makes great sense. We get to produce products for 10 cents on the dollar, we get great quality, and we don’t have to pay for insurance. It comes home, and we can sell it at a lower price than our competitors, or at the very least we can compete at the same pricing level as other people who manufacture overseas. The long-term view is… never ever do that. Here’s why: Manufacturing in places like China means rolling the dice with your IP. Whether it’s at the hands of an enterprising, opportunistic employee or a shady subcontractor, having your idea stolen and duplicated is a very real possibility, especially if it’s a proprietary creation with potentially high demand overseas.

many small businesses are new-shoring their products, which means starting from scratch. The advantage? It may cost a little more, but by locally prototyping and building the first few batches of your product close to you, you’ll be able to see and fix potential issues and confidently get your item to mass market. Another issue to consider with new-shoring is the cachet of the “Made in America” label. For many, the phrase is a beacon that helps attract clientele, but what about consumers who are a bit more sceptical? Try as they may, however, some small businesses just can’t afford to start. If new-shoring is a goal your small business is working toward, make sure you take the necessary steps to protect your IP overseas. If you’ve got a product with multiple parts, don’t manufacture everything in the same place. For example, in instances where electronics are being produced, procure your hard drive from one company, have the shell manufactured at another location, and obtain things like keyboards from a third partner, then assemble locally. Make enough money to stay in business, and produce it close to you to handle emergencies or changes. Once you’re up and walking — not running, walking — then you can start optimising your cost and your supply chain. Of course, the real secret is to make sure the product is unique. Then you can rely on that newness to demand a premium for it, which will offset your cost. Are you incorporating new-shoring into your business, or do you have a story you’d like to share about manufacturing overseas? Please tell us about it.

Unlike reshoring — which implies bringing jobs back that had previously left —

Will 3D Printing cause traditional manufacturing to collapse? by Ed Bernstein and Ted Farrington How accurately can we anticipate the future given today’s emerging technologies? Take 3-D printing. Our current model of producing goods is built around large-scale, globally linked manufacturing facilities with massive, complex lines of supply and delivery. What happens when 3-D printers overtake current models in terms of speed and cost effectiveness, allowing goods to be custom made for little cost by localised manufacturing hubs? Will we still need today’s manufacturing model? Through the Industrial Research Institute’s foresights study — IRI2038 — several plausible scenarios of the future of R&D were explored. In one scenario, traditional manufacturing collapses under the strain placed on it by 3-D printing and heightened speed-to-market practices and is largely replaced by local manufacturing networks.

A Low End of ‘Beta Tests’ At the low end of the market, new products are churned out as beta tests, released with little prior market research. At the high end are premium products developed by specially formed R&D communities that are working on solving the big challenges of the 21st century.

A High End Serviced by R&D Communities But not everyone is interested in this low end product churn. R&D communities form both inside and outside traditional companies to pursue solutions to some of the greater challenges facing humanity such as planetary warming, rising carbon dioxide levels, and resource scarcity. The PR boost such research generates leads to greater investment in their capabilities. One side effect of this division between high- and low-end products is the rise of social-value metrics as the key measure for evaluating purchases of new products. Market behaviour ceases to be driven solely by concerns about cost and effectiveness of the product. When every small-scale, 3-D printing business can churn out new products, the value an organisations will be differentiated by the value they add to the quality of life of target communities or society as a whole. Much of traditional large-scale manufacturing may cease to exist. Small, agile manufacturers will link with large R&D organisations in order to be associated with the social reputation they develop. And the corporation of the future will resemble a colony of like-minded researchers bounded by a common social purpose and protective of its expertise instead of its intellectual property.

The “buyer beware” model of the low-end churn arises from the convergence of three factors: e-commerce, just-in-time manufacturing bolstered by 3-D printing, and predictive algorithms for market behaviour. The result is a more anticipatory model of manufacturing and new product development that quickly produces goods for small markets in order to test which products will be successful on a larger scale. All products bear a licensing agreement that makes each consumer an official beta tester of the purchased “prototype.” To give order to the broad, scattered, and diverse line of new products churned out by these smaller networks, companies begin to develop hardware as a service — hardware platforms similar to today’s smart phone app markets. Such platforms may also come with crowd-sourced ratings systems for products linked to the hardware. A documentation network will help service this market with product reviews, FAQs, easter eggs, and hacks, dividing the new product landscape between producers and support services. Reduced product lifecycles and development costs bring an end to current project portfolio methods and the speed of new product delivery becomes essential as IP laws dissolve. Launching beta products and letting natural selection in the marketplace identify winners becomes more accurate and cost effective for companies. www.nzmanufacturer.co.nz

NZ Manufacturer March 2014

PRODUCT NEWS

Knowing is not enough; we must apply. Willing is not enough; we must do. – Johann Wolfgang von Goethe

Injection Moulders chosen for new Portable appliance testers BMW i3 complete more tests per day Krauss Maffei of Munich Germany have supplied BMW’s production plant at Leipzig, Germany with two double swivel plate Injection Moulding machines, complete with industrial robots that produce multi material plastics components for the New BMW i3 which went into production in September 2013.

Fluke Corporation introduces the Fluke 6200-2 and 6500-2 Portable Appliance Testers (PAT) with powerful auto-test capabilities and simplified controls, including one-touch test routines, that increase the number of tests users can performed per day without compromising results.

The MX 400017200/12000/750WL machines are impressive with dimensions of 24m Long x 9M wide x 7m High. They have a clamping force of 4000 tonnes and are producing the thermoplastic outer shell and combined substructure of the BMW i3.

The Fluke 6500-2 can reduce total test time by nearly 50 per cent through the use of professional mode, dedicated keys for one–touch testing, auto-test capabilities and fast storage and transfer of test results through the new USB data ports.

The production team and the machine platen.

The BMW i3 is a five door urban electric car and is BMW’s first zero emissions mass produced vehicle that features carbon-fibre reinforced plastic that improves the vehicles energy consumption.

Using the ‘joining in injection moulding’ process, the outer door shell and its substructure are injected in a single pass and are then joined when the two swivel plates turn and are bonded with a third plastic component. The combined work processes are said to ensure very high dimensional accuracy of the parts. The Injection Moulders were specifically developed for the project and produce the sidewall panels, rear bumper and hoods for the new generation BMW i3’s.

The lightweight, rugged Fluke 6200-2 and 6500-2 perform all the tests required for Class I and Class II appliances and conform to the EN61010-1 safety standard. They feature one-touch testing with dedicated keys for each test and pre-set pass/ fail levels to speed testing. The large display makes it easy to view test results and a separate IEC socket provides easy mains/extension lead testing. Users can also store and reuse common test sequences for consistent retesting of appliances. The 6500-2 also features an integrated QWERTY keyboard for rapid data entry, backlit display, memory for backup storage and an additional USB port for data transfers to PCs. It also offers new test capabilities including: 250 V insulation, RCD-protected appliances and optional 110 V test functionality for verifying appliances at building sites.

Eco Alkaline carbon neutral battery Innovative 5 layer pipe extrusion The world’s first eco-responsible batteries are high power, long life alkaline concepts batteries and the first of their kind to be certified as carbon neutral, offsetting carbon emissions. Don’t just start the year with good intentions, make a difference in 2014 with conscious purchasing decisions. Every Eco Alkaline purchase is carbon neutral with 0% cadmium lead mercury, recyclable packaging and PET plastic, while being environment and landfill conscious. For the first time in an eco-battery, reliability and performance is the equal or better than the leading non-eco brands. Eco Alkalines are made with 80% recyclable materials and are 98% recyclable, If recycling is not available and the batteries happen to be disposed of in household rubbish they are non-toxic. They leave a positive impact to benefit the environment. The Eco Alkaline range consists for the usual AAA, AA, C, D and 9 volt.

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Innovative 5 layer pipehead KM-5L RKW 01-40 are available with a single screw extruder combination. The development of Krauss Maffei’s internationally proven pipehead concept meets the increasing demand for manufacturers to produce complex, multi layer pipes. The pipehead has a modular design based on the spiral distributor principal: the spiral distributors are flow-optimized and have the lowest possible pressure loss, ensuring optimum pipe quality coupled with high production reliability. The machine on show can be combined with a single screw KME45-30 B/R extruder and two KME 3025 D/C co-extruders.

NZ Manufacturer March 2014

Work spares us from three evils: boredom, vice, and need. – Voltaire

DESIGNED FOR BUSINESS

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NZ Manufacturer March 2014

We are still masters of our fate. We are still captains of our souls.

PRODUCT NEWS

– Winston Churchill

Earth Ground Testers speed verification of electrical equipment 1623-2 and 1625-2 Earth Ground Testers with advanced features and accessories speed verification of a reliable connection to earth for grounded electrical systems, helping solve power quality problems and lowering the risk of shock to users. New world-class accessory reels can save up to 50 per cent of set up and tear down time compared to existing wire reels. Studies have shown that as much as 15 per cent of utility-based power quality problems are related to poor earth grounding. Fluke’s new Earth Ground Testers identify poorly grounded systems, helping increase uptime. The Earth Ground Testers help engineers and electricians meet electrical codes, engineering standards and local regulations to ensure that in the event of a lightning strike or utility overvoltage current will find a safe path to earth. They perform all four types of earth ground measurements: • 3- and 4-pole fall-of-potential • 4-pole soil resistivity • selective testing • stakeless testing The advanced testers feature USB connectivity for easy storage of up to 1,500 records with time stamp and fast downloading of measurements eliminating the need for manual data

transfer. Their large displays make it easy to read measurements in any environment. New accessories include heavy-duty stakes that can be hammered into hard ground, colour-coded wires to reduce errors and a professional, rugged carrying case speed. The 1625-2 model has advanced features including:

• automatic frequency control (AFC), which identifies existing interference and chooses a measurement frequency to provide more accurate values • R* measurement, which calculates earth ground impedance with 55 Hz to more accurately reflect the resistance that a fault-to-earth ground would experience

• adjustable limits for quicker testing • battery level status on the display. The 1623-2 and 1625-2 may be purchased as standalone testers or in kits that include test leads, clamps, batteries, EG stakes, cable reels and carrying case. Optional accessories include a 320 mm (12.7 inch) split core transformer for performing selective testing on individual tower legs.

K-Seal for radiator leaks An over-heating engine caused by a leaking radiator on a deserted stretch of road is a motorist’s worst nightmare, but now there’s an instant fix. It’s called K-Seal and it’s a relatively inexpensive solution to coolant leaks under the bonnet and, what’s more, it can provide a permanent repair to some problems. K-Seal will permanently repair and fix most leaks in the radiator or radiator casing up to a maximum size of 0.7mm – larger holes or cracks will require an epoxy putty. And, in addition to the radiator, it will also repair leaks in the head, head gasket, block, heater matrix, freeze plug and water pump casing, which makes it ideal for older engines, where the owner does not want to incur a big expense on major repairs. K-Seal is simple to use – a quick shake, then pour and go. No need to drain or flush the system. No need to worry about what type of anti-freeze or coolant is in the cooling system. It’s suitable for use with all water-cooled engines, including cars, motorbikes, commercial vehicles, heavy plant, agricultural machinery, marine engines and generators. The secret behind how K-Seal can repair a coolant leak so easily and effectively is down to a specially developed blend of chemical ingredients, including ceramic micro-fibres and copper particles. When added to the cooling system, the ingredients disperse and flow freely around the system suspended in the coolant. But if coolant is leaking from the system, either externally or internally across the head to the cylinders, then K-Seal will follow the coolant through the hole or crack and begin fixing the coolant leak. What happens is that the micro-fibres start to mesh together within the crack or the hole, building a seal literally fibre by fibre. In reality, this takes place almost instantly once K-Seal has reached the leak. The particles in K-Seal are very precisely designed to be large enough to repair holes up to 0.7mm in size, but deliberately small enough to never block any passageways or tubes within the cooling system, including the heater core and radiator. Once the micro-fibres have sealed and fixed the leak, a combination of exposure to an atmosphere, either the external atmosphere or the gases within the combustion chamber, together with the heat within the cooling system and engine, causes the K-Seal formula to cure. This results in an extremely strong and permanent seal able to withstand even the high pressures from the combustion chamber. This explains how K-Seal is able to repair head gasket failures, even where the cooling system is being over pressurised by exhaust gases entering the system. www.nzmanufacturer.co.nz

NZ Manufacturer March 2014

Great spirits have always encountered violent opposition from mediocre minds.

DEVELOPMENTS

– Albert Einstein

Christchurch developers urged to consider energy at earliest stage New commercial buildings in Christchurch must be designed for energy efficiency if they aren’t to become obsolete, the New Zealand Green Building Council said today. NABERSNZ, which launched last year, is a scheme that rates office buildings from 1 to 6 stars based on how energy efficient they are. Minimum NABERSNZ ratings are increasingly included as a requirement in project briefs and lease agreements in Christchurch. However, good NABERSNZ ratings will be hard to obtain if buildings don’t incorporate energy efficient principles from the outset, said NZGBC Chief Executive Alex Cutler. “NABERSNZ will become, as it is in Australia, an industry-wide benchmark for building performance. It’s great to see it being used in Christchurch to require high-performing buildings. But to achieve this, it’s important to design for energy efficiency, not try to add it in later,” she said. “Buildings that won’t achieve a decent rating, or aren’t even set up to measure energy, risk losing value and being shunned by tenants as the market adopts this,” she said. To obtain a NABERSNZ rating, buildings must have adequate metering to ensure energy use in different areas is measured separately. This separates tenant and landlord energy, and is particularly important in buildings

with mixed use (e.g. retail and office space). Energy modelling is a good way to ensure heating and cooling is as low-energy as possible, for example by using passive solar heat and fresh air for cooling. Design should also ensure heating and cooling can be easily adapted to meet users’ needs – a key aspect of energy efficiency. “Without thinking carefully about

energy use and integrating the right measures into the design, you simply can’t guarantee excellent energy efficiency,” Ms Cutler said.

a CBD that’s full of buildings that can truly achieve high NABERSNZ ratings. That would be a fantastic asset for Christchurch,” she said.

“There are skilled energy consultants operating in Christchurch and EECA’s funding for design advice is a great boost. Designers and project managers now need to make sure they’re putting principle into practice to build

An information session for industry on NABERSNZ will be held by EECA and the NZGBC in Christchurch on 13 March 2014.

National maintenance conference planning well underway Planning for the 2014 SKF National Maintenance Engineering Conference is well underway, with registration, exhibition and major sponsorship slots filling up already, six months before the November 12,13 event at Kingsgate Hamilton. Event sponsor SKF, social night sponsor SGS, official media sponsor DEMM and speaker sponsor Engineering News all quickly committed to a return in 2014, reaffirming their support for maintenance engineers and industry. However, with the event organisers signalling further growth with a switch to the larger Kingsgate site, suppliers are quickly recognising that the SKF National Maintenance Engineering Conference deserves their attention. Grabbing the Exhibition Hall naming rights sponsorship is an iconic supplier well known to maintenance engineers for centuries. James Walker is a company that has been supporting engineering and industry for, well, ever! Founded in 1882 by Scottish engineer James Walker, the company

has had a presence in New Zealand since the 1930’s remembered by most for the Lion brand steam packing. Today, the global materials technology based company specialises in anti-vibration products, tension control fasteners, railway trackbed systems and fluid seals. Plenty to take the interest of the engineering attendees! It is not just long term supporters stepping up with their support. Australia too is expressing an interest in the event, with K2 Technology taking up the Conference Day One Sponsorship. If you have not heard of K2 and their enterprise asset maintenance capabilities, you soon will. With expertise in maintenance and reliability, supply chain and operations support, K2 is well on the

way to becoming the Asia Pacific leader in enterprise asset management. Meanwhile, with a budgeted 50% increase in exhibitors to tickle the fancy of conference attendees, the conference management team are reorganising themselves too to ensure that bigger does mean better without losing the personable ethos that attendees enjoy. Back after an absence of 10 years, Chris Thomas of Special Events Aoraki rejoins Judi Cranston and Leanne Powley as a core member of the Event Team. Thomas,

who has been busy organising Masters Games and NZRFU events will have primary responsibility for exhibitors and sponsors, bringing significant capabilities to this growing portfolio.

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NZ Manufacturer March 2014

LEAN MANUFACTURING

You are the only person on earth who can use your ability.

- Zig Ziglar

Why Lean fails to make Industry competitive Twenty years after they gave away the Toyota Production System to Wormack and Jones for their book, The Machine That Changed the World : The Story of Lean Production, Toyota dominates car manufacturing. That was their plan. It is no surprise car companies down-size, close factories and go out of business when they use Lean. It was why the Toyota Board gave TPS away. Ask a professional sports coach how often they expect to win a game if they copy the strategy and tactics of the other team and use their strategy and tactics against them. Wormack and Jones did not realise that Lean would destroy the USA, European and Australian car industry when they released their book, The Machine That Changed the World : The Story of Lean Production, in 1991. Twenty years later Toyota dominates world car sales and their 1991 competitors have a falling market share and most of them are well on the way to going out of business. What a great result for Toyota and its free release of the Toyota Production

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System (TPS). What a brilliant strategy to become the biggest and best car maker within two decades. Toyota gave away their hard-won, original Toyota Production System in order to destroy their opposition. It makes no sense for Toyota’s Board to give a vital competitive advantage to their much bigger competitors unless it was meant to harm them. It is not altruism that spurred Toyota to let the world know about the Toyota Production System. Giving away TPS was intended to trick the competition into playing the game of ‘catch Toyota’. Any professional sports team coach will tell you that you cannot win games by copying another team’s strategy and tactics and using the same against them. Toyota’s Board gave away their greatest advantage for free with the clear expectation that it would be copied and used by all their competitors. The car industry across the world did what every smart sports coach knows is an impossible way to win the

championship—they copied TPS and tried to beat Toyota at its own game. Car company executives who adopted Lean to protect themselves against Toyota destroyed their business’ future. Since the release of the Wormack and Jones book, The Machine That Changed the World : The Story of Lean Production, countless companies around the planet use TPS Lean Production in the belief that it is their operating salvation. But Lean is a trap for your business to fall into; just as the Toyota Board meant it to be. You start playing ‘catch-up’ instead of becoming creative and innovative at solving your problems simply. TPS is but one way of creating efficient and effective operations. Lean is not the ultimate solution, that still remains to be discovered. TPS is a business-wide, systematic methodology. You have to change everything about your company and make it like Toyota to make Lean work. That is a thing that managers will never do, so instead companies

mistakenly use Lean for business process point solutions. When Lean methods are used for point improvements you impact the performance of the rest of your business system in unknown ways— both good and bad. You may get inventory reduction in production and miss out on sales because a desired model is not available. You may apply JIT to reduce delivery time and increase warranty recalls since poor quality items were installed. Companies that use Lean as point solutions see improvement. There are countless articles online and in books written about Lean turnarounds that proudly explain in great detail how their operation went from 52 percentage OEE to 80 percentage OEE. It sounds magnificent; until you realise that they needed to get to 92 percentage OEE to be truly world class competitive. That is how Lean tricks you and destroys your business: you believe 80 percentage OEE is a great result and you do no more improvements. It might be a great result from 52

NZ Manufacturer March 2014

Success usually comes to those who are too busy to be looking for it. -Henry David Thoreau

LEAN MANUFACTURING

percentage OEE, but you will still go out of business; only it will be painfully longer until your operation becomes unsustainable.

Lean methods and Lean tools are good and they work for Toyota

The Toyota Board foresaw it all. They knew that TPS would make them more successful faster if they gave it away and did not keep it a secret within Toyota and its suppliers. By releasing TPS to the world through Wormack and Jones they intentionally stifled innovation and creativity in their competitors.

Ask any professional sports team coach how you win games and they will tell you that you need to come up with your own strategy and game plan. You develop and build your unique style and techniques that competitors cannot match. You must play your own game and keep getting better at it. Then you will win matches. You can only lose if you mimic your opposition. Lean methods and Lean tools are good and they work for Toyota. But they also fail businesses and send companies to the wall. Managers use Lean because they think it will help them to be as productive as Toyota. They implement bits of TPS Lean as point solutions and think it is all that they need to do to be successful. They badly copy what Toyota does and that guarantees failure. They should have used their own better solutions. Ask a professional sports coach and they will tell you that if you want to win the championship you must ‘change the game’ to one that you can win. They will tell you that you cannot adopt another’s strategy and methods and expect to win at playing their game.

How to ‘change the game’ To managers in a troubled company Lean sounds like such a marvellous choice to improve productivity. Since the 1991 Wormack and Jones book, The Machine That Changed the World : The Story of Lean Production, Lean has become so prevalent that company managers do not question its adoption. They say, “Everyone is doing Lean and so must we.” They see Lean as the answer to quickly becoming more competitive. They fall into the ‘catch-up’ trap set by Toyota’s Board. What Company management does not see is that Lean will later destroy their business from complacency and lack of internal innovation and motivation. By

using Lean you kill the entrepreneurial drive and innovative spirit in your company and start playing the game of ‘catch-up’. If you adopt Lean you spend years introducing it. It never quite works right for you. What positive changes you get from Lean might push your performance to above average. But very few companies that apply the TPS Lean strategy get to world class performance. It does not make sense to use a business solution that has little chance of making your company highly competitive. The reason Lean cannot get every company that uses it to world class operational results is a simple human foible—you did not create the solution and so you have no passion for it. If you want 92 percentage OEE and more you need a sure way to redesign your business so that you have the internal drive to make your company that good. Applying TPS Lean methodology in your company will not create the endless passion you need to get to world class performance.

If you want to win in the marketplace you must be unique. You must play the game in the way that you play best. You need to find the love and passion to keep improving, innovating and adapting your skills and tactics so that no one else can play the game as well as you. That is exactly what Toyota does with TPS. Do not copy your competitors. You gain no advantage if you also play the same game in the same way as the competition. You must have a different answer that is better than what they do. To start making your business a world class certainty, first adopt a methodology that drives your company to select and use the best solutions, and then keeps improving them with better solutions; so that you are always at the top of YOUR game. If you jump onto the Lean band-wagon you will start training your workforce in 5S, SMED, TPM, VSM, 5 Why, 3P, mistake proof, and more. You will spend a fortune on Lean training providers, use-up man-years of time in

courses, alter your company’s processes to make them more efficient and still not be a world class operation. You will see improvement at first; then you will see decline. The excitement passes quickly when there is no passion to sustain it. Lean fails companies because Lean is used for the wrong reason (catch-up) in the wrong way (imposed on the workforce). The first action to undertake when improving your operational performance is to select the best changes to make. You want changes that bring sure, lasting world class production results and return great operating profits. There needs to be a process of business analysis done to decide what changes make the most profit, and the best ways to get those changes in place. Your analysis may indicate that a particular Lean tool is the right solution to use, but mostly you will find that Lean methods are not your best choice.

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NZ Manufacturer March 2014

MATERIALS HANDLING

There are no secrets to success. It is the result of preparation, hard work learning from failure. -General Colin Powell

Lifting system restores Equilibrium of Christchurch building An EVO synchronous lifting system has been deployed by Sync Lift Systems Ltd to safely raise, re-level and restore for occupancy an entire 2,800 ton three-storey building that sank up to 300mm during the devastating Christchurch earthquake of 2011. The cost of damage caused – including liquefaction producing more than 400,000 tons of silt – has since ballooned to more than $NZ40 billion (more than $US33 billion, or $A35 billion) with Prime Minister John Key describing the project as the largest and most complex in New Zealand history. One of the most heavily damaged areas was the city’s Central Business District (CBD) the new generation 12-point synchronous technology was deployed by Sync Lift Systems Ltd to level a 70-metre long concrete building in Fitzgerald Avenue. The building was dislodged from its foundations by the earthquake and needed to be raised and leveled in a precision operation designed to optimise safety during the lift and to ensure maximum stability in preparation for reoccupation. The lifting system deployed was of a type that replaces manual control of hydraulic heavy lifting with Programmable Logic Control (PLC) control of multiple cylinder lifts, a technology that offers accuracy, safety and productivity benefits for precision lifting of heavy machinery, plant and structures. Using the EVO system, one operator controls the entire precision lifting process, during which the status of every lifting point is constantly monitored and displayed. Instead of whole teams of lifting personnel trying to manually co-ordinate with each other lifts by hydraulic cylinders dispersed around a job, the EVO-Series Synchronous Lifting System integrates the high-pressure hydraulic cylinders involved with the PLC system to monitor and control precise movement and positioning of heavy loads. Through an integrated HMI (Human Machine Interface), all movements are managed from a central control position that displays live operation www.nzmanufacturer.co.nz

with real-time status updates for each lifting position. “We choose to use the synchronous lift system to meet the very strict safety and building deflection stipulations given to us by the engineers involved,” said Synchlift Systems New Zealand Director Mr Garry Millar. “We had to restrict flexing of the building to a range within 4mm a metre – or a total of 24 mm over jacking points spread 6m apart.” The lift was staged progressively from one end of the building to the other, with first one end, then the middle, then the other end lifted by increments to optimise accuracy and minimise deflection. The process was repeated to raise the building to the required position. Twenty-two 100 ton and 150 ton Enerpac 700 bar (10,000psi) cylinders were installed on steel stools and connected to the building’s foundation (above). Some cylinders were connected together and operated as one from one outlet of the system. These combined cylinders were synchronised on the signal coming from the single stroke sensor connected to them. All hydraulic lift cylinders were connected to the EVO’s pump unit via hydraulic hoses connected (As can be seen below). To correctly manage the cylinder forces, the lift stools were levelled to provide the correct reaction (above). The lift crew attached draw-wire stroke sensors to each of the lifting positions (below). The EVO system uses displacement information measured by the stroke sensors to maintain a synchronous accuracy over all positions of less than 1mm. The operators then entered synchronous accuracy, maximum and pre-load control parameters into the system, specific to the lifting operation.

The Synchronous Lifting System controlled the extension of the cylinders to saf sely and accurately lift the foundation and the building to the required position.

• Mining, including heavy static plant such as grinding mills and machinery

Once the foundation was lifted to the correct position, the lock nuts were fastened and the foundation and building was fixed in required position

• Harbours and jetties

The entire project was completed within 21 days. Reoccupation of the building commenced shortly afterwards and will continue into 2014. “In the end we believe the building we delivered was more level than when it was built,” said Mr Millar. “The specialists installing the lifts said it was so straight they didn’t have to adjust their vertical lift rails – the building was so level and true.” Enerpac Integrated Solutions’ Manager Mr. Richard Verhoeff said the operation was completed on time with a high degree of safety. “The EVO system employed on this lift by Synchlift Systems New Zealand is the evolutionary result of Enerpac’s 25 years of experience in specialised hydraulic engineering and lifting technology using digitally controlled hydraulics. ‘In addition to buildings and stadiums, it can be readily applied to infrastructure such as bridges and tunnels and for monitoring, foundation support and structural testing.” Further applications of synchronous technology include: • Oil, gas and petrochemicals, including oil refinery and platform installation • Power generation, including generator and turbine lifts • Wind power structures, including windmill levelling

• Shipbuilding, including hull components and entire vessels • Production, manufacturing • Aerospace, including lifting for transport of Airbus A380 wings • Transport, including railroad • Lifting and aligning of NASA radar systems Synchronous Lifting systems have already been used to accurately and safely lift some of the largest and most challenging structures on earth. Recent examples include the superlifting and launch of a 43,000-ton floating oil production system in Malaysia for the Gumusut-Kakap offshore field. Australian applications include dragline splitting and lifting for bearing maintenance in Queensland and the lifting and positioning of 1500 ton grinding mills in Western Australia. The EVO synchronous system offers eight standard hydraulic control modes and can control 4, 8 or 12 points with one hydraulic power unit (HPU). A master control unit is also available that offers daisy chain control of up to 16 EVO systems, giving a maximum of 192 lifting points. The multifunctional EVO-Series can be used with multiple standard 700 bar (10,000 psi) single- or double-acting cylinders and is offered with a 5 HP or 10 HP hydraulic power unit with 250 litre (66 gallon) reservoir. Accuracy, controllability and safety are major benefits of the EVO system, while time saving is another advantage. The process does not have to be stopped after any incremental value, checked, manually re-measured and corrected. The EVO System carries

NZ Manufacturer March 2014

Nothing ever comes to one, that is worth having, except as a result of hard work. - Booker T. Washington

MATERIALS HANDLING

out these actions during the entire lifting process, even with low lifting or lowering speeds. Depending on the application, time savings up to 60 percent can be achieved. Safety benefits of the PLC-controlled system include elimination of the potential for error with the multi-operator manual control approach. The digitally precise EVO-system incorporates warnings and stop functions. It offers full monitoring and control, with programmable failsafe monitoring and safety alarms. The precision control offered by the EVO system reduces the risk of structural damage by bending, twisting or tilting due to uneven weight distribution or load-shifts between lifting points. The easy-to-use and very user-friendly touch screen interface displays the movement process, cylinder positions and load read-outs by lifting points and total load. Enerpac’s synchronous lifting technology monitors and manages lifting, lowering, weighing, alignment and load transfer procedures of non-uniformly distributed heavy loads. The system incorporates a variable

frequency drive (VDF) motor, which facilitates lowering of engine speeds and oil flows as required to optimise control of the speed of lifting. This feature also makes it possible to use the system with various capacities of cylinders.

For superior visibility and control, the EVO-Series offers network capabilities to link up to four hydraulic power units to a single master control. The system features a user-friendly interface with easy-to-use menus for simplified navigation. Additionally, the system

can be programmed to record and store operation data at user-defined intervals to continuously monitor the pressure and position of every lifting point for safe, accurate control.

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NZ Manufacturer March 2014

BUSINESS NEWS

Ambition is the path to success. Persistence is the vehicle you arrive in.

- Bill Bradley

Exporters feeling better, but cautious

Business owners look inwards for successors

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during February 2014, shows total sales in January 2014 increased 10.0% (year on year export sales increased by 32.56% with domestic sales decreasing 5.17%) on January 2013.

New Zealand business owners are ranked among the highest in the world in their desire to have existing staff to buy their businesses.

The NZMEA survey sample this month covered NZ$342m in annualised sales, with an export content of 49%. Net confidence was at 21, down on December’s result of 30. The current performance index (a combination of profitability and cash flow) is at 98.7, down from 101.7 in December, the change index (capacity utilisation, staff levels, orders and inventories) was at 102, down from 103 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 107.17, up on Decembers result of 103.67. Anything less than 100 indicates a contraction. *Constraints reported were 57% markets, 36% production capacity and 7% skilled staff. *Productivity for January was unchanged on last month. *Staff numbers January increased year on year by 0.93%. All staff segments, tradespersons, operators/labourers, supervisors, managers and professional/scientists, reported a moderate shortage for January. “This month continues the trend we have been seeing through recent months, with exports gaining ground and domestic sales falling. Some of this export improvement can be attributed to some particularly large respondents reporting significant year on year increases. Things are starting to look better on the surface, but many are still cautious,” says NZMEA Chief Executive John Walley. “Indexes are again fairly mixed, with net confidence and performance down, while the forecast index improved.” “Concern remains around our overvalued currency and the absence of any policy response, reducing margins and putting import competing manufacturers under price pressure. The signalled OCR increases by the Reserve Bank of New Zealand (RBNZ) over the coming months have the potential to make this worse.” “There are other macro-prudential tools which can be adopted alongside the OCR to tackle inflation in the domestic sector without deflating the tradable sector further by appreciating our currency. For example, the LVR addition to the other macro-prudential tools now available to the RBNZ have shown some excellent traction, adding income to debt restrictions would provide a further and focused intervention tool to control debt that would not have the exchange rate kicker. Holding off on interest rates until the world gets back to normal would support the traded sector.” ”It is worth remembering that even with Terms of Trade at a 40 year high, rising 2.7% on the last quarter, largely driven by high export prices for our main commodities, we still struggle to balance our external position. Our trade balance has improved, from a negative trend throughout 2012 and the first half of 2013; to a trade surplus of $320m in January this year but our net external debt remains high at $144,426m, and our current account deficit is predicted to increase in the future.”

The latest research by accounting firm Grant Thornton showed that 64% of New Zealand business owners are relying on staff to buy their businesses. Only Japan and the Philippines (68%) had higher figures amongst the 45 countries surveyed. Pam Newlove, Chair of Grant Thornton New Zealand’s Board, said that such a high figure highlights the importance of business owners having a comprehensive, long-term, plan in place, to ensure this will happen. “One of the big pressures on businesses at present is retaining staff. Unemployment is down to 6%, one of the lowest figures for several years, so holding on to staff is the first priority. “This means key talent must be nurtured. To retain staff from Generation X and Y, employers will need to be innovative in their management styles. This may come as a surprise to more traditional thinking business leaders. “Buying a business is not a spur of the moment consideration. Owners need to be asking themselves today: ‘Is there a staff member capable of running this business? Would they want to? How will they finance it? And how many years will it be till they are ready to take over?’ “And that’s really just the start.” Newlove said that it is a particularly important subject in New Zealand because of the high number of privately owned businesses looking to change hands in the next 10 years. “Our most recent research shows that a staggering 69% are looking to do so. We are an economy based on small businesses so that is an enormous amount of change, mainly relying on existing staff to step up and stump up the money. “It’s interesting that so many business owners consider that there is such talent within the business and that those employees will have the desire to make the ownership commitment. “Therefore it’s important that business owners sit down with the desired employee to investigate suitability, appetite and to plan the future transition.”

Darien Fenton wrong Labour MP Darien Fenton is wrong in claiming business wants a minimum wage of $7 an hour. No suggestions for that amount have ever been made.

average wage stops the economy from growing and reduces young people’s chances of gaining employment.

BusinessNZ has never called for the minimum wage to be reduced.

New Zealand’s minimum wage as a percentage of the average wage is the highest in the world, at 51 percent.

New Zealand business wants to see a higher average wage, through a stronger economy based on higher skills, innovation and productivity.

Since 1999 there have been extensive increases in the New Zealand minimum wage rate, increasing faster than the average wage.

With a higher average wage, business would expect to see the minimum wage, as a percentage of the average wage, set appropriately.

BusinessNZ Chief Executive Phil O’Reilly says the need is for a stronger economy, and a minimum wage set at 25 percent of a much higher average wage rate over time.

Too high a minimum wage as a percentage of the www.nzmanufacturer.co.nz

NZ Manufacturer March 2014

Failure is simply the opportunity to begin again, this time more intelligently. – Henry Ford

ENERGY REPORT

Procurement means savings to the bottom line South Canterbury electricity supply company Alpine Energy Ltd and its construction subsidiary company Netcon have saved their stakeholders many thousands of dollars – by simply being prudent when going shopping for supplies and services.

spending time in the procurement environment.”

Forward-thinking Alpine, owned by Timaru District Council (47.5 per cent); LineTrust South Canterbury (40 per cent); Waimate District Council (7.54 per cent), and the MacKenzie District Council (4.96 per cent) has embarked on an infrastructure upgrade across the region, positioning the city of Timaru and the farming community for industrial and agricultural growth over generations to come.

“When I first started for the Alpine Group I found people spending too much time in the procurement environment.

That it has been able to carry out such wide-ranging upgrades while holding costs to the barest minimum has been due in part to one executive whose job it is to “shop around for the bits”. Appointed by the Alpine Group two and half years ago, Group Procurement Manager Brendan McNeice offers no apology for being picky. His efforts have directly saved both companies bottom-line dollars and indirectly countless hours “by leaving engineers to be engineers, designers to be designers and repair crews to be repair crews instead of spending time outside of their job description chasing down nuts and bolts”. Procurement is defined as the acquisition of goods, services or works from an external source that are fit for purpose procured at the best possible cost and delivered to meet the needs of the purchaser in terms of quality and quantity, time, and location. McNeice says the idea of procurement is to centralise the function to make sure that the commodities that you buy are on time, every time, within budget and fit for purpose. “It’s an industry in itself,” he says. “What is developing in industry now, as opposed to the old days of a stores department, is a move towards procurement actually being a profession and as a consequence of that it allows efficiencies in supply, cost and labour. “So the added benefit of procurement is that you get your professionals and other aspects of your operations such as engineering or people in some administrative functions concentrating on their core jobs as opposed to them

McNeice is an experienced professional spending 17 years as group procurement manager for TV3 MediaWorks. The role covered two national television networks and 65 radio stations. “I purchased everything there, from a needle to an anchor.”

“That had a double negative effect. It was having a negative effect on their productivity with them running around trying to find suppliers and a negative effect on the price paid because they were trying to negotiate the best they could with a host of suppliers,” McNeice said. “Now, they give me the spec and I do the whole shooting box – deal with suppliers, negotiate the sharpest deal, chase up the delivery dates, arrange for cartage and generally meet targets. I do the insurance, the shipping, the whole A to Z of procurement, from the front door to the back door.”

“That’s the national stuff, but also we have been a lot more efficient with the day-to-day stuff. You know, the run-of-the-mill day-to-day rats and mice procurement such as nuts, bolts, fasteners,” McNeice said. “The key message is that, yes, price savings go straight to the bottom line, but there are significant intangible savings to be made with the increased productivity gained by taking everybody else out of the picture and letting them get on with their jobs.”

By Graeme Stillwell

the last flight out of Wellington and freighted from Christchurch in the middle of the night ready for the teams at 7.30am. It was a 15-hour turnaround. McNeice said the airline “moved mountains” to ensure the equipment arrived in time. Netcon has also successfully competed for international contracts building off-grid installations in Afghanistan and Nauru.

And when adverse weather events hit a power company, such as they did earlier this year, having those suppliers just a phone call away paid dividends.

“We have been able to take the principle of procurement into the international environment when we have been expanding the Netcon business,” McNeice said.

Keen to ensure Alpine’s construction company Netcon was well equipped for what could be day after day in frigid snow-storm conditions, snow boots and gaiters were ordered from Wellington.

“If your materials haven’t been costed properly, you haven’t got a show. We can be very keen (priced) on transformers, cables, vehicles etc, and that gives us a huge advantage.

McNeice said Air New Zealand ensured that snow boots and gaiters for the entire Netcon field staff were on

“By and large contracts are won and lost just on money. Having an effective procurement regime means we can be sharper than sharp,” he said.

He said a dedicated procurement function also meant a constant relationship with suppliers, “which means that I can leverage deals across the board”. And when like-minded companies, in this case electrical supply firms, band together in the procurement area those deals carry added weight, driving costs down even further. McNeice sits on a collective called the National Supply Team Collective (NSTC) which comprises of electrical supply companies Top Energy, Vector, NorthPower, Wel Networks (Waikato area), PowerCo, Unison, and Alpine Energy. “We collectively negotiate national fuel deals with a major petroleum company, which saves up to 20 per cent on normal fuel prices. That’s even cheaper than the Government can get fuel for. We can save up to $60,000 year on year just on fuel alone,” he said. “And we also have deals on the likes of photocopying and stationery which can see us saving up to 40 per cent on normal costs. On IT hardware we can save up to 10 per cent.” “Plainly, suppliers are seeing the bulk sales equating to profits where we see bulk purchases equating to savings, and substantial ones at that.

Alpine Energy Ltd Group Procurement Manager Brendan McNeice offers no apology for being picky. His efforts have directly saved the Alpine Group bottom-line dollars and indirectly countless labour costs “by leaving enginee www.nzmanufacturer.co.nz

NZ Manufacturer March 2014

BUSINESS NEWS APPOINTMENTS Hill Laboratories appoints new GM

New CEO for AsureQuality

New Zealand’s leading analytical testing laboratory, Hill Laboratories, has appointed Dr Matt Glenn as new General Manager (GM) of Operations and Analytical Technology.

AsureQuality is pleased to announce the appointment of John McKay as its new Chief Executive Officer (CEO), commencing 3 June 2014.

Dr Glenn brings to Hill Laboratories almost two decades of executive management experience in the Biotechnology, Biopharmaceutical, Food Ingredients and Chemicals industries. After moving to New Zealand from England in 1995 with a PhD in molecular biology from the University of Leeds, Dr Glenn began his career as a scientist at Genesis Research and Development Corporation Limited in Auckland. Swiftly adding management experience to his scientific background, Dr Glenn was soon appointed head of the company’s Genomics Division, looking after the biggest DNA sequencing facility in the southern hemisphere. He has since worked in management roles for some of New Zealand’s most successful companies, including Fonterra as Portfolio Manager for its Marketing and Innovation group, and Ballance Agri-Nutrients in Tauranga as General Manager of Research and Business Development.

John is an experienced international business leader who comes with proven experience in the food and dairy sectors and has a strong customer partnership approach. He is currently CEO of Hansells Food Group where he runs a diverse and complex business including four manufacturing sites, and sales and distribution companies in New Zealand, Australia and the United Kingdom. John has extensive international business experience in Asia, Latin America and Europe including the role of Global Brands Director for Fonterra based in Singapore and Marketing Manager (Europe) for American Express. He has experience working with and forming joint ventures, having worked with Fonterra’s joint venture partners in Venezuela, Taiwan and Malaysia.

For the five years prior to his appointment at Hill Laboratories, Dr Glenn was the Founder and Principal of Idea Partners, a specialist management consultancy company.

This Bill is part of the Working Safer reform package, which will substantially improve New Zealand’s workplace health and safety performance across all sectors, including forestry, and other high risk areas where the workplace death and injury toll is unacceptable.

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Waikato Management School to Host Global Leaders Forum The move towards building a more entrepreneurial economy within New Zealand, and establishing stronger partnerships with important players in international markets, requires New Zealanders who understand how to lead in multi-cultural and multi-geographical environments, and can take their innovative products and services global. The University of Waikato’s Management School has recognised this need for developing global leaders and will host a Global Leadership Forum targeting corporates in the Bay of Plenty, Waikato and South Auckland regions, as well as University of Waikato alumni and staff, on Monday 12 May. Held at Claudelands Events Centre in Hamilton, this forum will provide participants with key insights designed to provoke, challenge, inform and inspire them with new perspectives for developing their leadership capability. There will also be ample opportunities to mix informally with keynote speakers, round table contributors and leaders in key industry sectors. Featuring among the speakers is Unilever Europe President, Jan Zijderveld. Born in the Netherlands, Jan Zijderveld was educated in New Zealand, graduating from the University of Waikato with a management degree in 1987 before joining Unilever and embarking on his global career with this multinational consumer goods company.

New Zealand Global Women. The programme will include an hour and a half round table discussion. Upon registration, participants will be invited to submit potential questions for this session which will involve a number of business leaders, including Kate Wilson (IP Strategist and Partner, James & Wells), Mike Pohio (CEO, Tainui Group Holdings Limited), Neil Cowie (CEO, Mitre 10 NZ) and Neil Richardson (Businessman, Investor and Philanthropist). “New Zealand is a country with a small market that is geographically quite distant from key economic centers. Because of these constraints New Zealand needs entrepreneurs with the leadership skills required to partner successfully with complementary businesses in key international markets,” says Waikato Management School Acting Dean Associate Professor, John Tressler. “By holding this forum for the business people of our region we hope to build awareness of opportunities to partner internationally and encourage those who attend to further develop the required entrepreneurial and leadership skills to do this successfully”, he adds.

Health and Safety Reform Bill to overhaul workplace health and safety The Health and Safety Reform Bill, introduced to Parliament, represents the first major reform of New Zealand’s workplace health and safety system in 20 years.

Dr. Matt Glenn

– Zig Ziglar

Also included in the line-up is Executive Director of Hawkins Construction, Jim Boult, who has been Director, Managing Director and Chairman of several substantial public and private companies; and Mai Chen, Founding Partner of Chen Palmer Public and Employment Law Specialists. Mai Chen is also best-selling author of Public Law Toolbox and was the inaugural Chair of

Hill Laboratories is a 100 per cent privately owned New Zealand analytical testing laboratory and has three major testing areas: Agriculture, Environmental and Food. With its main site in Hamilton, the company currently has four sites in the North Island, two in the South Island, and an office in Japan.

Every sale has five basic obstacles: no need, no money, no hurry, no desire, no trust.

This new law will see stronger enforcement, and beefed up penalties.

Critically, it places more regulatory pressure on people at every level of the supply chain in the forestry sector and other industries across New Zealand to address health and safety issues so they are front of mind every single day. The Bill will be supported by effective guidance and education and will play a major role in reducing New Zealand’s workplace injury and death toll by 25 percent by 2020. The Health and Safety Reform Bill will create the new Health and Safety at Work Act, replacing the Health and

Safety in Employment Act 1992. The Government’s intention is that the Bill will be passed in 2014, with the new Act coming into force from 1 April 2015. The Bill will be supported by two phases of regulations. A discussion document about the first phase of regulations is expected to be released for consultation early next month. WorkSafe New Zealand will support businesses in the transition and beyond with education and information.

NZ Manufacturer March 2014

REAR VIEW

All lasting business is built on friendship. – Alfred A. Montapert

Getting what you pay for Non-compliance is often identified when a failure occurs, or when inferior quality products are substituted and are delivered to site. In these cases, it can be a very costly exercise for everyone involved to undertake remedial measures, reject products when they are delivered or implement separate quality assurance measures. As a consequence of this, it is in everyone’s interest to get things right first time by ensuring that construction products comply with the standards specified by the designer through conformity assessment. The three possible levels of conformity assessment for a construction product are: By the manufacturer or supplier (first-party); By a user or purchaser (second-party); or By an independent body (third-party). For any user or purchaser who has undertaken a conformity assessment of the different products that are used within a structure (second party), this can be a daunting prospect. Particularly when considering that, to enable a Producer Statement to be issued: The manufacturer’s certificates will need to be reviewed (which could run into their hundreds on a large project); the performance characteristics on the certificates need to be compared with the product standards that they were manufactured to; and it needs to be verified that the laboratory that conducted the tests to establish

By Dr. Stephen Hicks, HERA Structural Systems General Manager

the performance characteristics are accredited to undertake the tests according to the relevant test standards (for AS/NZS steel products, the laboratory has to be accredited by signatories to the International Laboratory Accreditation Corporation (ILAC) through their Mutual Recognition Agreement (MRA), in the field and class of testing). Due to the time and skillset required to undertake these tasks, third-party conformity assessment of products is becoming the norm internationally. The benefits of third-party certification are as follows: • The body independently and expertly assesses compliance and fitness for purpose of products to their relevant product Standards, irrespective of origin of the material. • It removes the need for customers and certifiers to check every supplier test certificate. • Experience shows that independent certification neither affects the availability, nor the costs on the end product In response to concerns that a number of non-conforming products are entering the country, under the Australasian Procurement and Construction Council (APCC), the Australian Technical Infrastructure Committee (ATIC) has been developing a Suite of Schemes to enable third-party product certification bodies to be able to consistently evaluate the performance of different construction products. In response to the perennial question: who certifies the certifier (to prevent anyone from deciding to become a

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certification body), the appropriate qualification for a certification body to operate in this area is through being accredited by the Joint Accreditation System for Australia and New Zealand (JAS-ANZ) to the International Standard ISO/IEC 17065. Accreditation to this international standard independently benchmarks the governance, probity, general operation, independence and impartiality of the certification body to current international best practice. For steel products, the conformity assessment is undertaken in two stages: the certification body checks to see if the manufacturer can consistently make a product according to the relevant product standard before it is placed on the market (known as Initial Type Testing, or ITT); and, after completion of the ITT, the certification body routinely audits the manufacturer’s processes to ensure that the product is consistently achieving the performance requirements and that the appropriate quality systems are in place (known as Factory Production Control, or FPC). The Australasian Certification Authority for Reinforcing and Structural Steels (ACRS) were formed by the industry in 2000 and offer a third-party product certification scheme. ACRS currently certifies 42 steel producers from 16 countries around the world, for over 100 production locations supplying materials to AS/NZS steel Standards. To ensure that New Zealand interests are represented, HERA and the Building Officials Institute of NZ (BOINZ) have made a commitment through Dr Stephen Hicks and Nicholas Hill, CEO of BOINZ, taking on the role of Directors on the ACRS Board.

Dr. Stephen Hicks.

Given that the majority of structural steel suppliers to the New Zealand market have been accredited by ACRS (for the current list certificate holders, as well as their production sites, see http://www.steelcertification.com/), it is therefore of great satisfaction to learn that ACRS achieved JAS-ANZ accreditation as a certification body to ISO/IEC 17065 in February this year. Unlike Europe where CE Marking is mandatory for all construction products that are permanently incorporated into ‘construction works’, it is a pity that, through MBIE Standards and Conformance Review, there doesn’t appear to be a similar level of regulation for the conformity assessment of construction products. Given the potential influx of imported products in response to the Christchurch rebuild, it is felt that this is an opportune time for the government to take leadership in this area by making a regulatory move in a similar way as has been done to ensure that only complying food products enter our market.

NZ MANUFACTURER • APRIL 2014 Issue • Features

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