August 2021
www.nzmanufacturer.co.nz NEWS 6 BUSINESS Mind the gap:
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why Kiwi businesses need to address skills
KIWINET AWARDS FINALISTS Creating business impact.
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ANALYSIS The secret of productivity growth is not technology.
Inflation pressure triggers uncertainty and volatility for manufacturing sector -Rebecca Reed
Rapidly rising costs for businesses, a lack of skilled and unskilled workers, increasing inflation and shipping delays are putting huge pressure on New Zealand’s business environment and the consumer is about to feel it. The latest Hutt Valley Chamber of Commerce Business Confidence Survey found inflationary pressure is increasing and between a third and a half of all businesses are expecting to increase their prices in the next 3 to 12 months.
Electric Boat Building Company based in Seaview, Lower Hutt, says an increase in shipping costs coupled with severe delays of getting materials shipped to New Zealand is causing growing uncertainty around pricing for his customers.
It also found more than half of all businesses are expecting increased costs, yet less than 25% are expecting increasing profitability.
“The cost of the delay is also putting us under extreme pressure. It has had a huge impact on our business – we are talking hundreds of thousands of dollars. Due to Covid, the delay in getting product to us from overseas has meant the critical path of the project has taken longer, yet we still have overheads and staff to pay.
Covid-19 economic impacts, growing concern around government policy and labour shortages are holding businesses back nationally. The survey shows labour shortages as the single biggest barrier to business for more than 60% of businesses. This is at unprecedented levels. “The business environment continues to be increasingly difficult – while the economy has rebounded strongly and demand continues to be strong, the ability for firms to deliver is fraught with a wide range of risks and cost increases. “These cost increases and risks are more widespread across business type and size as all companies try to adapt to the rapidly changing business environment,” said Helen Down, Chief Executive of Hutt Valley Chamber of Commerce. Down says she is hearing from businesses unable to commit to fixed prices or a delivery timeline due to the totally uncertain environment. “This time last year our survey found business owners were experiencing small increases in costs and holding prices but now costs are increasing rapidly, and the consumer is only just starting to feel it. The situation is set to deteriorate quickly when businesses are forced to not only increase prices but not even commit to a set price in the next six months,” said Down. The Wellington Electric Boat Building Company is just one Hutt Valley business finding it extremely difficult to price any future work. The company, which builds electric passenger ferries in a range of sizes (16-24 metres), has achieved notable acclaim for building the first all-electric high performance passenger ferry in the Southern Hemisphere for East by West Ferries in Wellington. Fraser Foote, the owner of the Wellington
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“Previously we would order some fibreglass from American or Asia that would take 6 weeks to get here, now we are experiencing a 16-week timeframe. “The increased costs and delays mean we can’t commit to a fixed price for our customers. The fabric of our business and society has changed for the foreseeable future. I can see this continuing on forever and I think the uncertainty of supply and delivery pricing is now the norm.”
Staying true to your clients Helen Down says if the fabric of our business and society has changed indefinitely, businesses need
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CONTENTS Contents
DEPARTMENTS 1
LEAD LEAD
ADVISORS
Inflation pressure triggers uncertainty and Get your carbon diet on track. volatility for manufacturing sector.
EDITORIAL 4 EDITORIAL
When EMEX 2021 The situation sucks.comes to town.
6 Mind the gap: why Kiwi businesses need to BUSINESS BUSINESS NEWS NEWS
Manufacturing in the age of sustainability. address skills shortages. Is NZ’s Covid response world class?
TECHNOLOGY 7 MANUFACTURING UKK’s CPTPP a win for exporters. WRONZ launches Wool Source. MANUFACTURING TECHNOLOGY KIWINET AWARDS 88 2021 NZ Code business can makeimpact. manufacturing more Creating competitive.
TECHNOLOGY Dewalt Design Assist breaking new ground. 10 MANUFACTURING The biggest mistake a manufacturer can ANALYSIS 10 make… Time for change. CHAIN 11 SUPPLY
Kirk Hope
6 6 8
Is Chief Executive of BusinessNZ, New Zealand’s largest business advocacy body. He has held a range of senior positions at Westpac and is a barrister and solicitor.
Ian Walsh
Ian is Managing Director of Intent Group, a master black belt improvement specialist and global lean practitioner. He is passionate about improving productivity and helping to create world class New Zealand businesses.
Anatomychange of a data-driven supply chain. Catalyse in your supply chain with responsible procurement.
EMEX 2021 14 ANALYSIS 13 The Floor Plan and Exhibitors. -15 secret of productivity growth is not technology. ANALYSIS 16 COMMENT carbon neutrality: One company’s 14 Achieving lessons learnt.
Technical experts left behind when developing soft skills. How workers feel about work. SMART MANUFACTURING
7 9
17 Australia launches lunar exploration mission. PROFILE 16 COMPANY Cutting edge tool for underwater recovery.
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17 21
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Bronson – A vision for a quality future. Matrix 320 reader empowers traceability for SMART MANUFACTURING automation and logistics. The benefits of processing data at the edge, QUALITY CONTROL not the cloud. NDC sensors control manufacturing at the Fonterra deploys Ada. fromt line. New digital identifiers help prepare businesses for the future.
NEW PRODUCTS 22 Choosing the right robotic solution for every
Structural bearings deliver extreme low-level application. friction performance. A simulation approach to autonomous heavy Cost-effective and lubrication – free mounting equipment safety. of solar panels.
AC Servo System provides highest-level safety. PRODUCTS 24 NEW efficiency with iglidur polymer linear DEVELOPMENTS 25 Greater bearings.
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Mint Innovation raises $20m to build gold C6 e-chain: New design and brasion-optimised biorefineries. materials of the highest class. HRS highlights steam injection for food DEVELOPMENTS sterilisation. Feeling our way towards hydrogen. Is automotive ready for hydrogen? ATNZ appoints new CEO.
REAR VIEW 28 REAR 27 ClimateWORD Change Commission calls for decisive Why we need engineers who study ethics as action. much as maths.
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25 20
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Leeann Watson
Is the Chief Executive of the Canterbury Employers’ Chamber of Commerce (the Chamber).and is a strong voice for Canterbury business.
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.
Brett O’Riley
EMA chief executive Brett O’Riley has a background in technology and economic development. Brett actually grew up with manufacturing, in the family business, Biggins & Co. He currently holds board roles with Wine Grenade and Dotterel Technologies and is also on the NZ Film Commission board.
THE SITUATION SUCKS
PUBLISHER Media Hawke’s Bay Ltd,1/121 Russell Street North, Hastings, New Zealand 4122.
MANAGING EDITOR Doug Green T: +64 6 870 9029 E: publisher@xtra.co.nz
As Rebecca Reed reports in her excellent article
CONTRIBUTORS
on Page 1, Inflation pressure triggers uncertainty
Holly Green, Barbara Nebel, Ishan Galapathy, Rebecca Reed, Barbara Nebel, Femi Perumbally, Alistair Gordon, Martin Thunman Alex Teo, Kevin Dherman
and volatility for manufacturing sector, labour shortages are at an unprecedented level and the single biggest barrier for more than 60%
ADVERTISING Doug Green T: + 64 6 870 9029 E: publisher@xtra.co.nz
of businesses.
This from the latest Hutt Valley Chamber of Commerce Business Confidence Survey that also found inflationary pressure is increasing and between a third and a half of all businesses are expecting to increase their prices in the next three to 12 months.
DESIGN & PRODUCTION Kim Alves, KA Design T: + 64 6 870 8133 E: kim.alves@xtra.co.nz
WEB MASTER Julian Goodbehere E: julian@isystems.co.nz
At present, all the balls seem to be up in the air. Costs and delays affecting inward bound goods; a record number of job vacancies with employers struggling to find the staff they need; inflation on the rise; businesses forced to not only increase prices but not able to commit to a set price in the next six months. They simply cannot predict the immediate future.
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As Fraser Foote, owner of the Wellington Electric Boat Building Company based in Seaview, Lower Hutt puts It: “Due to Covid, the delay in getting product to us from overseas has meant the critical path of the project has taken longer, yet we still have overheads and staff to pay.
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“Previously we would order fibreglass from American or Asia that would take six weeks to get here, now we are experiencing a 16-week timeframe. The increased costs and delays mean we can’t commit to a fixed price for our customers.”
Vol.12 No. 7 AUGUST 2021
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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How is your company finding things? Do you have a similar story to tell? Let NZ Manufacturer know and we will share your story. A bit of interaction may help with a solution.
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Doug Green
Success Through Innovation
Editorial
Company Profile
How do you remain globally competitive in today’s manufacturing environment?
In the current business climate we are all having to do things smarter and faster to keep up with the pace of change. Manufacturing is no exception. Become part of Industry 4.0 and access these FREE resources
• Access our free webinars and site visits where other businesses that have under-gone the network site visits process share their knowledge. • Have your business assessed for Industry 4.0 readiness using the internationally recognised Smart Industry Readiness Index (SIRI).
• Connect with others in similar sectors facing the same challenges to bounce ideas off.
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Further questions?
To find out more please contact Michael Burgess at EMA or Frank Phillips at LMAC Michael Burgess +64 9 367 0936 manufacturing@ema.co,nz Frank Phillips +64 (0) 272233077 frank.phillips@lmac.co.nz
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Business News Mind the gap: why Kiwi businesses need to address skills shortages Global pandemics are a real and recurring threat, but companies are also being hit with a second wave of adversity: acute skills shortages. Experts are warning businesses the effects of the ongoing pandemic may last well beyond 2021, and the message is clear: address widespread and systemic skills shortages in order to survive. Factors including technology advancements contribute to skill gaps, and though hiring staff is one way to solve the issue, it is often costly so many businesses are turning to another solution: upskilling existing employees and taking on apprentices. Food ingredient manufacturer Cedenco’s Russell Glasford knows the effects a skills shortage can have on a business. Once he identified the skills that would make the biggest difference to the plant, he moved to make some staff members’ positions permanent – a move that has paid dividends. “Our biggest issue was getting people to stay long enough to teach the skills required,” says Russell. “We needed to retain those skills inhouse and to be able to pass them on to other workers. The results have been overwhelmingly positive. “Upskilling staff helps bring positives out of a person. They become more focused on the job and
Commercial & industrial growth
seem happier coming to work and it also helps staff get into other positions as they feel more positive towards themselves.” The government’s training packages announced last year have given Kiwis of all ages the opportunity to receive on-the-job training while providing financial support for employers. And demand has been high. Between July and September 2020 the number of Competenz trade apprenticeships almost doubled compared to the same period in 2019. “In an economic downturn an increasing number of Kiwi businesses are seeing the perfect opportunity to introduce new skills,” says Competenz CEO Fiona Kingsford. “Organisations have realised that training can engage a workforce, making them happier, more loyal and less likely to leave.” Fiona points out that while there will be more “bumps in the road” as the New Zealand economy recovers, adaptability in all aspects of businesses is essential, beyond technical skills. “Soft skills like digital literacy, leadership and critical thinking must be part of the modern skillset
Fiona Kingsford.
for business survival. Upskilling is critical to not only navigating through these tough times, but to thrive.”
Employment growth
Economic output
Crime rate East Tamaki is the largest industrial precinct in Auckland with 2000 businesses and a growth rate higher than the regional average. getba.org.nz
getba Greater East Tamaki Business Association Inc.
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Manufacturing Technology WRONZ launches Wool Source Wool Research Organisation of New Zealand Inc (WRONZ) has announced its world-class research initiative with the Ministry of Business, Innovation and Employment (MBIE) to explore new uses for New Zealand’s strong wool has led to the development of unique wool particles, powders and pigments with global export potential for applications as diverse as cosmetics, printing, luxury goods and personal care.
The goal is to develop more sustainable product ingredient alternatives for global manufacturers and consumers – while revitalising New Zealand’s strong wool sector, creating new value for our economy and communities.
WRONZ unveiled the innovative wool products at an event to celebrate the achievements from its New Uses for Strong Wool programme, supported by research, industry and funding partners.
SWAG chief executive Andy Caughey says, “We’re providing support for Wool Source to undertake a deep dive project into particles, powders and pigments markets to assess the scale and viability of the commercial opportunity.
WRONZ also announced the launch of commercial development company Wool Source to develop the new products and assess market demand for the strong wool innovation. WRONZ further announced the completion of its pilot production facility to manufacture its first deconstructed wool ingredients from 100 per cent biodegradable, renewable and sustainable New Zealand strong wool. The launch event also provided the opportunity to announce investment from the Ministry for Primary Industries to fund further product lines and commercial development as part of the wider New Uses for Strong Wool programme. MPI is contributing $1.95 million via its Sustainable Food and Fibre Futures (SFF Futures) fund alongside $2.92 million from WRONZ. The three-year programme aims to prove the commercial viability of the new deconstructed wool particle products.
Additionally, The Strong Wool Action Group (SWAG) announced it was jointly funding Wool Source’s market engagement alongside WRONZ.
“New Zealand’s wool production, 90% of which is strong wool, is at a low point with declining sheep numbers. With many farmers selling wool at a net cost this season, the industry is desperately seeking innovation to boost strong wool demand and prices.” Wool Industry Research Limited (WIRL), a wholly-owned subsidiary company of WRONZ, is five years into its seven-year research contract for the New Uses for Strong Wool R&D programme. MBIE invested $8.4 million of the $21 million seven-year project in partnership with WRONZ. The research programme has focussed on deconstructing wool to a cellular and particle level and then reconstructing it for various product uses. WRONZ has just completed its pilot plant facility at Lincoln University, which the WRONZ board backed and funded from its own capital. Wool Source will operate the pilot production plant to run production
trials, develop market samples, and engage with parties interested in new product development. Wool Source chief executive Tom Hooper says, “Wool Source is reimagining the future of New Zealand wool. Our new pigment, particle and powder products - from all-natural, sustainable, strong wool particles - provide the base ingredient for a new generation of high-performance materials, free from chemicals, metals, and toxins. “We’re focusing on proving the commercial viability of our products and establishing demand, predominantly with international markets.” Wool Source is looking for local partners, especially in personal care, cosmetics, pigments, and printing. Hooper says, “Wool fleece is the perfect sustainable, biodegradable, cruelty-free and traceable natural product – with intrinsic positive characteristics that enable use against the skin. From skincare to luxury fibres, the opportunities for new products are endless. “Ultimately, we’d like to see the future development of a large-scale manufacturing operation in New Zealand solely using New Zealand strong wool.”
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2021 KiwiNet Awards 2021 KiwiNet Awards finalists: Saluting NZ’s world-class research, creating business impact Sixteen finalists have been selected for the ninth annual KiwiNet Research Commercialisation Awards, designed to celebrate impact from science through successful research commercialisation within New Zealand’s universities, Crown Research Institutes and other research organisations. The innovative research commercialisation successes include new aluminium-ion battery technology, next-generation cochlear implant technology, nanofibre cosmetic products from marine collagen, ‘lab on a disk’ testing platform, freeze-dried vegetable baby food, plant disease biocontrol product, reusable framing system for sustainable construction, smart calling and voicemail platform, commercial-scale production of traditional Maori fungi, and protection of critical infrastructure from cyber attack. New Zealand’s research commercialisation professionals are also recognised. The Kiwi Innovation Network (KiwiNet) is a consortium of 18 universities, Crown Research Institutes, an Independent Research Organisation and a Crown Entity
established to boost commercial outcomes from publicly funded research by helping to transform scientific discoveries into new products and services. KiwiNet CEO Dr James Hutchinson says: “The KiwiNet whānau of universities and research institutes has spent the past ten years creating an extraordinary pipeline of projects, accelerating our most promising ideas to market. The stars are now aligning for all parts of our ecosystem, and great opportunity awaits. We see the critical role that deep tech can play in our COVID-19 recovery, scientifically, economically and beyond. We’re excited to celebrate the people and teams who are harnessing brilliant research discoveries to transform lives and grow New Zealand for future generations.”
The 2021 KiwiNet Research Commercialisation Awards finalists are:
Momentum Student Entrepreneur (left to right) • Jeanette Rapson, Massey University: Early Habits - freeze-dried vegetable baby food • Luke Campbell, University of Canterbury: Millions of calls made smarter with Vxt • Tom Maslin, University of Canterbury: The next generation of cochlear implant technology
Breakthrough Innovator Award (left to right) • Christopher Smith, Manaaki Whenua - Landcare Research: The Mushroom Smith • Ged Finch, Research and Development, XFrame™/ Wellington UniVentures: XFrame™ - a recoverable and reusable framing system for the next generation of sustainable construction • Dr Matheus Vargas, Orbis Diagnostics/ University of Auckland: Orbis Diagnostics makes complex medical testing simple and accessible wherever and whenever needed to help re-enable safe travel amidst a pandemic • Dr Shalini Divya, Tasmanlon/ Wellington UniVentures: A new aluminium-ion battery technology, offering a safer, sustainable, cost-effective alternative for grid storage and portable applications
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Researcher Entrepreneur Award (left to right) • Andrea Bubendorfer, Callaghan Innovation: Championing science and scientists for real value • Prof Johan Potgieter, Massey University: Inspiring entrepreneurial insurgency by creating a technology pipeline • Prof Ian Woodhead - Lincoln Agritech Limited: Advancing electrical and electronic engineering for agri and environmental sectors
Commercialisation Professional Award (left to right) • Dr Alex Tickle, Otago Innovation Limited: Leading research teams to commercial success • Darja Pavlovic-Nelson, Plant & Food Research: Sensing opportunities – capturing value from Plant & Food Research IP • Hamish Findlay - General Manager Commercialisation, Wellington UniVentures: A commercialisation expert, identifying and nurturing commercial outcomes to create impact
Commercial Impact Award (left to right) • Plant & Food Research and NanoLayr: Nanofibre cosmetic products from marine collagen - ActivLayr™ a unique nanofibre delivery platform for bioactives and cosmeceuticals • First Watch - WaikatoLink and CTEK: Protecting critical infrastructure from cyber attack
• Aureo®Gold - Plant & Food Research, Zespri and UPL: Aureo®Gold a new biocontrol product combating plant disease
Winners will be announced at an evening reception on 16 September in Auckland. www.nzmanufacturer.co.nz
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Manufacturing Technology The biggest mistake a manufacturer can make is to focus on cost cutting In 2009, global cereal giant Kellogg’s announced an aggressive three-year, $1 billion cost reduction scheme. The savings were to be delivered through overall supply chain improvements that focused on process optimisation, asset utilisation and waste management. The scheme was christened Project K-LEAN (Lean, Efficient, Agile, Network), and it was primarily driven to replicate the success achieved at two North American Kellogg’s manufacturing plants. Given the clear objective of Project K-LEAN (rapid cost savings), every initiative delivered exploited short-term, bottom line improvements like headcount reduction, maintenance budget cuts and plant shutdowns. Although the organisation over delivered on its ambitious $1 billion promise, it left its teams with scars, bruises and loss of trust, which made it difficult to engage employees in any further productivity improvement initiatives. This is not an isolated case. In September 2020, Kraft Heinz announced a $2 billion cut in costs over five years as a way of driving growth. Since the Kraft Heinz merger in 2015, the company has lost nearly half its stock value. An even harder pill to swallow for Kraft Heinz is that its stock keeps tumbling while the S&P 500 Index for the same category keeps rising. When the cost-cutting plan was announced, analysts and investors didn’t buy-in that businesses such as Kraft Heinz could turn around its performance and increase shareholder value by ‘cutting’ costs. In comparison, a company such as Proctor & Gamble (P&G) that focuses on processes that deliver cost reductions as an outcome truly operates with a world-class supply chain. Don’t take my word for it—Gartner’s latest 2021 global top-25 supply chain report lists P&G as one of five organisations in the ‘masters’ category, which means it has maintained a top-5 ranking for at least seven out of ten years. In 2013, I was fortunate to visit one of P&G’s ‘bestof-the-best’ sites: the Pringles factory in Jackson,
Tennessee. It is a world-class mega factory that spans 40 acres under roof and employs 600 workers. Most employees have a thorough knowledge of the site’s strategic journey and the initiatives being deployed to bring the strategies to life. Senior operators deliver internal training programs that include fundamentals of machine mechanics, hydraulics, pneumatics, drive systems, sensors etc. Machine breakdowns are a non-event because they have resolved the root causes. The focus is on minor machine stops. Aside from technical skills, employees develop interpersonal, communication and coaching skills as they progressed to higher levels. Problem-solving capabilities within the site are exceptional. Clearly, the workforce is highly engaged. This results in identifying and implementing initiatives to advance the site year-on-year while simultaneously reducing costs.
So why is cost cutting the wrong approach?
a $300,000 improvement during a conversation on the factory floor by simply repositioning a cheese sprinkler. All that was needed was a $20,000 customised sprinkler. This was not visible to me on the P&L.
1) We foster the wrong culture: Cost cutting has a fear-driven mindset that leaves employees feeling uneasy. When the constant focus is on tightening the belt, you are likely to end up with a work culture that is neither engaged nor willing to explore opportunities that could result in sustainable change. Employees work in constant fear that jobs will be lost.
4) We only gain short-term results: You might get some quick results with low-hanging fruit, but once they’re gone, business leaders are forced to identify new opportunities. Typically, these are harder to implement and leaders get ‘stuck in the business’.
2) We don’t reveal hidden opportunities: Cost cutting is primarily about reducing expenses on a Profit and Loss (P&L) statement. Unfortunately, the P&L doesn’t reveal all opportunities to improve.
1) Reducing day-to-day chaos: Implementing systems such as daily huddles to reduce the fire-fighting.
3) A few years ago, an operator helped me to identify
2) Identifying real improvement opportunities: Regularly engaging employees to identify hidden opportunities that aren’t obvious on the P&L.
Instead, here’s how world-class companies focus on processes that deliver cost reductions as an outcome:
3) Creating strategic alignment: Working solely on initiatives that are strategically aligned to the 3–5 year objectives.
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What approach will you take to improve business performance year-on-year? Ishan Galapathy, author of ‘ADVANCE: 12 Essential Elements to Supercharge Productivity & Profitability’ (Bison Press, $30.00), has a wealth of knowledge in the field of Operational Excellence (OpEx), having worked across six countries for over two decades. Renowned for his simplified techniques, Ishan works with manufacturing businesses to help them move from Chaos to ExcellenceTM. For more information on how Ishan can assist your business visit www.ishangalapathy.com
Supply Chain Catalyse change in your supply chain with responsible procurement By Barbara Nebel and Femi Perumbally
Supply chains have become a focal point of conversations around a company’s performance. Organisations and their stakeholders now want assurances that their values are reflected throughout the supply chain. A responsible procurement framework helps companies to mobilise positive change through the different tiers of their supply chain. By prioritising suppliers that align with their environmental and social values, they can encourage a much wider range of companies to shift the dial on those issues. This means working with companies that have similar values and are willing to put in the work to comply with the preferred supplier requirements — not just companies that already meet the requirements. We look at the companies putting responsible procurement frameworks into action and the three core components required for success: stakeholder engagement, screening, and supplier code of conduct.
Stakeholder engagement: Understand the priorities of your company and stakeholders The first step is to understand the areas that are most important to your organisation. A materiality assessment can help you identify and prioritise the issues that are most important to your organisation, based on feedback from a wide range of internal and external stakeholders. If you are not able to undertake a full materiality process right now, it doesn’t mean you have to miss out on the benefits of stakeholder engagement. You can still engage with your internal and external stakeholders on a smaller scale to understand the high priority areas and market expectations for your organisation. This can feed into your responsible procurement framework and the overall process for supplier selection. To determine priority areas related to their sustainability values, premium lighting solutions company, Eagle Lighting (formerly known locally as Fagerhult NZ) looked to the UN Sustainable Development Goals framework for inspiration. An SDG workshop run by thinkstep-anz brought together representatives from different areas of the company to consider the Goals that are most important to Eagle Lighting across a range of areas. Eagle Lighting followed this up with an external stakeholder engagement process, allowing the company to assess their sustainability priorities through a customer-focused lens.
Influence your supply chain Every company with a supply chain has potential to create positive change. The bigger the company, the bigger the ripple effect. Before you start the screening process for suppliers, identify and prioritise the criteria you will use based on the findings of the stakeholder engagement process.
https://www.thinkstep-anz.com/
is required, expected, and preferred from an organisation’s supply chain. In New Zealand, leading companies like New Zealand Post and Air New Zealand have built in criteria around environmental and social standards that they expect their suppliers to meet. The wording should reflect how different criteria are ranked within your organisation — what are the non-negotiable requirements, the expected standards, and the nice-to-have criteria for your suppliers? Whether your organisational values focus on addressing issues such as labour standards (SDG 8 & 12), gender equality in the workforce (SDG 5), environmental sustainability (SDGs 7-14, 15), or climate change (SDG 13), a supplier code of conduct makes your priorities clear to all interested parties. While some companies give preference to suppliers with environmentally and socially sound practices, others like Australian logistics company Brambles (better known in NZ under its brand CHEP), will only work with suppliers that agree to comply with all relevant aspects of their Code of Conduct and Supplier Policy.
drawcard on its own, companies that commit to sustainable practices beyond compliance can reap a host of additional benefits. These benefits include increasing efficiencies, reducing costs, mitigating risks, and growing revenue — all while becoming a company that better aligns with the expectations of its staff, clients, and customers.
Let the SDGs guide procurement decisions The SDGs are becoming a standard part of reporting for listed companies in Australia and New Zealand. Out of the top 100 listed companies in Australia and New Zealand, 56 are reporting on the SDGs in thinkstep-anz’s SDG Status Report. However, the SDGs are not only for large companies — the 17 Goals provide a useful framework for companies of all sizes to define and clearly communicate their values, priorities, targets, and measure their progress.
Lachlan Feggans from Brambles explained that the company “achieved 100% sustainable sourcing right around the globe in 2020” at thinkstep-anz’s SDG Panel Discussion in April. Their policy was a gamechanger in the international forestry markets as it helped to shift the industry towards more sustainable practices. When companies with sizeable supply chains put their expectations into writing, they are essentially shifting the perception of these issues from being add-ons to being requirements.
The benefits for socially and environmentally responsible organisations While larger companies have more capacity to influence, small to medium enterprises (SMEs) can stand out among competitors by driving responsible procurement practices within their own organisations. SMEs that have well established environmental and social policies, or are in the process of finalising them, will be well placed for contracts with Government and large companies. The New Zealand Government’s procurement rules, which include requirements for agencies to incorporate or consider priority outcomes, apply to all government departments, police and defence forces, and most crown entities for procurement that is worth more than $100,000. These priority outcomes include increasing local businesses’ access to government procurement, improving conditions for workers in government contracts, and supporting waste reduction and the transition to a zero net emissions economy.
Eagle Lighting’s three-step responsible procurement framework includes a supplier questionnaire, code of conduct, and screening process. Following on from their responsible procurement process, Eagle Lighting will give preference to suppliers who prioritise similar goals, such as investing in renewable energy and energy-efficient production (SDG 7), supporting environmentally and socially responsible practices (SDG 12), and actively promote diversity, including, human rights, and community investment in their business and supply chain (SDG 10).
Responsible procurement is for everyone Companies like Eagle Lighting are on a mission to prove that doing right by the planet and people will ultimately be good for business. However, it is not a goal that can be achieved by any single company on its own. An organisation’s supply chain provides one of the biggest opportunities to drive this change beyond its own activities.
Larger companies also take procurement seriously, choosing suppliers that align with their values and help them to avoid operational and reputational risk.
Building meaningful partnerships for the goals (SDG 17) will bring a larger group of companies along for the ride and will also help them to reach their sustainability goals faster. A responsible procurement framework guides and formalises this process. While the ripple effect will be felt most strongly by the top tier suppliers, this will soon extend to their suppliers, and it will go on to catalyse a supply chain transformation.
Supplier code of conduct: Seal it in writing
These companies may also need to meet commitments of member organisations. Examples of this include the Sustainable Business Council (SBC) which requires all members to have a sustainable procurement process in place within 3 years of joining, and the Climate Leaders Coalition (CLC) which requires signatories to work with suppliers to reduce emissions.
A supplier code of conduct formalises what
While climbing the preferred supplier list is a major
A supplier questionnaire can help to make evidence-based decisions that consider each supplier’s performance according to your organisation’s specific criteria. These include essential criteria such as price and quality, along with organisational values such as specific environmental and social issues.
Focusing on environmentally and socially responsible practices alongside profit, will help potential suppliers to remain attractive in a market that is increasingly value driven.
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Analysis
The secret of productivity growth is not technology The idea that technology drives productivity growth is both a commonplace and a common frustration. Economies operating at or near the technological frontier have long seen sagging trend growth rates despite marvellous technology – from artificial intelligence to bioengineering to robotics – proliferating at breakneck speed. This matters because productivity, or output per input, pays for higher wages and is the foundation of long-run prosperity. In that sense, it matters most in rich economies where higher productivity growth would allow political debates to shift from (re-) distributing a relatively stagnant economic pie to sharing a growing one. Yet, there is an often-overlooked factor in the debate about technology and growth. Yes, technology undoubtedly plays a critical role, but we should think of it as the fuel of productivity growth. The spark is provided by tight labour markets, i.e. when firms are forced to better utilise technology because they cannot add labour easily.
Technology undoubtedly plays a critical role, but we should think of it as the fuel of productivity growth. So how can cyclical tightness spur productivity growth? Which types of economies are set to benefit from this relationship? And why should policymakers see tight labour markets as both an opportunity and risk?
Understanding the spark of productivity growth Availability is often not enough to prompt broad adoption and utilisation of technology – integration can be costly and there may be implementation risks. It is often easier for firms to continue to grow with the next incremental hire. When labour markets are tight and wage growth runs above long-run trends, however, firms will face downward pressure on margins even when revenue is growing. Such a pressure cooker economy can force executives, managers and workers to adopt and better utilise existing technology, instead of looking to an expensive labour market for extra capacity. The fuel of productivity growth is global, but the spark is local While the frontier of technology can diffuse around the globe through trade and global value chains, the labour market conditions that provide the spark for adoption are far more localised. This means that productivity growth may diverge in countries with similar technological capabilities. Rapid tightening - or loosening - of labour markets can occur as the byproduct of strong cyclical dynamics (such as the recovery currently underway). Or it can happen as the result of the structural organisation of local labour markets. In other words, economies have different capabilities when it comes to harnessing the nexus between labour market tightness and productivity growth.
allow workers to claim a growing share of output. In Europe, the recovery is more modest and the labour market is less flexible, making a bidding war for labour less likely. Balancing the risks and benefits of tight labour markets Ignoring the benefits of tight labour markets could come at a cost for policymakers and executives. The US economy is on a path to achieving higher output in 2024 than was once expected pre-pandemic, i.e. “overshooting” its old trend path. Owing to strong and sustained fiscal stimulus, the rapid return to labour market tightness has been framed as an inflationary threat. Often a picture is painted of an impending wage-price spiral and a Federal Reserve falling behind the curve and smothering the cycle once forced to raise rates to reign in price growth. Our own view has been that the price growth of recent months relates to transitory mismatches as the economy reopens. Our bigger concern, however, is that a narrow view of labour market tightness (i.e. focusing only on the risks) will carry costs. The benefits of a hot economy, as outlined above, represent as much a macroeconomic opportunity as a threat – two dynamics that need to be balanced. Part of this balancing act is acknowledging that tight labour markets push productivity growth and thereby can expand an economy’s capacity. This would actually narrow the dreaded overshoot, even as economic activity remains strong. For firms as much as for policymakers, it could be a mistake to look at the pressures of a hot economy as all bad.
Consider the difference between Europe and the US, two advanced economies that operate at the technological frontier.
In many ways, firms that fail to engage in technology adoption and utilisation are like policymakers who end a hot cycle before its benefits can unfold.
The US is set to benefit from a tight labour market as the lack of easy labour is already forcing firms to invest and reinvent their businesses and processes.
The strongest outcome will likely be when cyclical pressure is kept up for an extended period. This will require a view that embraces the benefits of a tight economy alongside its risks.
This will underpin not only faster growth, but also
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Comment Technical experts left behind when developing soft skills – here’s how to fix it Your organisation likely relies on talented technical specialists to keep it functioning. Engineers, software developers, researchers, scientists, lawyers, economists - whatever field they’re in, technical specialists are often critical, but also expensive, hard to hire, and hard to retain. They also have an underserved reputation for being
would define “high-performing”. They’ll tell you it’s
to
bad with soft skills - with negotiation, stakeholder
not about leading teams, it’s about solving critical
innovation, projects and ideas. Experts don’t want
engagement, with knowledge transfer or succession
problems that threaten your business, and using
to learn to be people leaders - but they welcome
planning. But what if the problem isn’t nature, it’s
their deep domain knowledge to create competitive
ideas to become better experts.
nurture?
advantage.
How do you define high performing?
They’ll also tell you that they’d love for talented
experts who are stuck, and whether they could
experts to be trained with enterprise skills - not just
add greater value than you may have realised.
basic soft skills, but coaching to understand your
To an expert, many employers are similar - not
Most organisations quickly spot when they have a
organisation’s commercials, risk and reward, and the
that interested in expert ideas, and not that
high-performing emerging manager. And they roll
creation and maintenance of business relationships.
understanding of expert challenges.
out the red carpet: career paths, appraisals, training to polish their business skills, career ladders, and all those forms of leadership support.
lead
5. Ask your heads of technical teams to identify
Often, experts are sent on the same courses as
6. How significantly would you improve expert
people leaders - it’s all business skills, after all. But
retention if you helped experts understand that
experts don’t respond well to leadership programs,
you welcome - in fact, encourage - their ideas and
What makes this leader a high performer? It’s that
because they don’t want to be managers. They want
their work?
they show aptitude and interest in leading teams -
to be better experts - more senior, more influential,
maybe one day even becoming CEO.
Alistair Gordon is the CEO of Expertunity, an expert
and more effective.
coach, speaker and author, and a long-time veteran
This is not the case for experts. Where people
How do you solve the soft skills problem? Here’s five
of the media and organisational-development
leaders are promoted, coached and encouraged,
ideas to start.
high-performing experts are not. They’re often trapped in the same technical role for many years. They perform miracles, but in roles that frequently become unchallenging and uninteresting over time. Why are experts not seen as “high-potential”? They don’t want to be CEO, and often they would prefer to not even have to lead a team.
1. Redefine “high-performing” to reflect business value more than people leadership potential. This will transform your organisation’s ability to unlock the latent competitive advantage of experts. 2. Frame enterprise skills as part of an expert’s day
acumen are critical to their long-term growth.
As a result, high-performing experts end up stuck. They’re not going to be people leaders, so they’re not given the development they need to polish
What if you gave experts the same guidance? Once presented, it’s rare that we see experts fail to take up that challenge.
their business and people skills. And without that
3. Create an expert capability framework, to show
development, it’s assumed experts were “born that
what true mastery involves. Are you clear which
way” - they aren’t capable of developing soft skills
non-technical skills you want experts to acquire?
in the first place.
4. Don’t
default
to
offering
only
leadership
Ask your CIO, or head of engineering, or data
coaching. Leadership coaches the skills needed to
science, or the head of the policy team how they
lead teams. Expertship develops the skills needed
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He is the co-author with Dominic Johnson of Master Expert: how to use Expertship to achieve peak performance, seniority and influence in a technical role (Expertship Press $49). Find out more at www.expertship.com
to day role. From their first day at work, people leaders are told that soft skills and commercial
Ending up stuck
worlds.
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Where people leaders are promoted, coached and encouraged, high-performing experts are not.
Comment Survey reveals how employees are really feeling about their work It really is the small things that count - that is one of the key findings revealed as part of the inaugural EMA Workplace Wellbeing Survey in partnership with nib. The online survey of nearly 600 people - spanning all business sizes, sectors and from leadership to frontline staff - was recently conducted to better understand the link between wellbeing, retention and productivity. EMA Chief Executive, Brett O’Riley, says the survey uncovered the small business choices which have the most significant everyday impact on their people and that ignoring them could be a huge risk to your business. “While 84% of survey respondents strongly agreed that staff wellbeing initiatives contributed to the retention of high performing employees, the most common methods of measuring staff wellbeing relate to turnover and retention levels (65%), absentee rates (63%) and exit interviews (48%). “Of course, many of these measurements are occurring at a point when it’s too late to make a positive difference,” he says. “In a world where challenges as a result of the Covid-19 pandemic mean retaining and upskilling your people is crucial to your ongoing success, businesses have got to take this seriously and be more proactive to keep their people,” Mr O’Riley adds. Overall, survey findings indicated that one in six companies do nothing to track and measure wellbeing, and of those, 33% were small businesses
continued from Page 1
with less than 15 employees. On a positive note, small businesses were seen as particularly good at responding to requests for flexible hours, with 62% of respondents from organisations with less than 15 staff saying their employers did so ‘really well’, compared with 43% overall. nib New Zealand Chief Executive Officer, Rob Hennin, says strong communication and support during the height of the pandemic saw 55% of respondents report improved job satisfaction over that time, but that worryingly these levels have since dropped. “Initially many businesses were quick to introduce positive communication ways to support their people but over the last year there has been a significant increase in the proportion of workers feeling concerned about all aspects of their wellbeing,” Mr Hennin said. The survey showed 32% of respondents were concerned about the health of their family (up 10% from pre-pandemic levels), one in four had concerns about their own health (up 11%), closely followed by 23 per cent being concerned for the mental health and wellbeing of their family (up 6%). One in three employee respondents also believed their employer could be more proactive at prioritising, adapting and implementing wellbeing strategies. “There’s a significant opportunity here for businesses. It’s not about being tokenistic, but offering solutions that truly make a difference to employees’ lives. Not only does it show you care, it plays a pivotal role in
retaining high performing staff - saving you money in the long-term - and can also give staff peace of mind, improving productivity as they have greater ability to focus,” Hennin concludes. When asked which initiatives would make the biggest difference to addressing these areas of concern, the two top areas spontaneously mentioned by respondents were flexible working policies and mental health initiatives. In the workplace, a lack of adequate staff resourcing, failure to manage resources to mitigate burn out and failure to manage reasons why people leave were the key areas where survey respondents felt businesses were underperforming, especially in larger organisations. “We believe it’s time to look at a refreshed management playbook to make sure open, honest relationships with deeper levels of understanding with everyone in an organisation for their sake, and that of your business, but the most important thing is to just make a start as it is all intrinsically linked.”
Inflation pressure triggers uncertainty and volatility for manufacturing sector
to be up front and communicate with their clients to set realistic expectations on delivery times and costs. “We are going into an environment where the pressure on business is only going to get greater and this disruption is going to be with us for years. Businesses need to now be investing in their client relationships and keeping their customers close to them. “It’s important they try and protect their customer relationships they have worked hard to build over the years.” Foote agrees, “the only way around all of this is to work closely with your clients, educate and be honest with them about what’s happening in the market. We are not putting timeframes on anything until we have defined scopes of work as we have no idea how long things are going to take.” Buying local and investing in trusting relationships has never been more crucial as the country heads into an increasingly uncertain 2022. “The economic environment is going to get harder, and some businesses won’t get through it. They are going to need more support than they have ever had, and they are going to have to rely on solid and local relationships they have built up over the years” said Down.
Investigating new shipping models According to Helen Down, there is no one quick fix the need to investigate and consider completely new models for local supply and logistics around manufacturing has never been more important. “We can’t rely on the models we have built up over
the past few years because they are broken – so that may mean looking at NZ owned shipping lines as a way of moving freight, having control and reliability. The bottom line is we can’t stay cut off – there is pressure on NZ businesses to move overseas because they feel they will get left behind being at the bottom of the world. “Our market is not big enough to be attractive for global suppliers to send products to us. Our inability to achieve economies of scale is a real threat. The shipping companies are going to choose the biggest markets where they have the biggest orders. “We are hearing that some northern hemisphere shipping lines have pulled out of the Australasian region in favour of servicing the Asia to Europe routes which is much more lucrative. We need to encourage more manufacturing here so we can supply our domestic market as well as our export market. “Our market is too small to prioritise sending ships. We should be encouraging more manufacturing in NZ so we can supply ourselves and our markets, have control and not be as reliant on imported materials to complete projects. We are starting to hear examples of manufacturers investing in local supply opportunities.”
The future can be bright if we invest locally While businesses scramble to meet customer demand, it is important suppliers, customers and suppliers support local whether that is purchasing local or even investing in local companies.
The Wellington Electric Boat Company is looking to commercialise their product and is in the process of seeking investors that will allow them to develop and build better products. “We have recognised a whole degree of new technology and new mechanisms that will allow us to go into the future and build boats that are lighter, faster and more efficient. However, to do this we need funding to commercialise some of these new opportunities. But first we want to put the boat in the water and prove the technology that we have been developing is there. “We have recognised a dozen new areas where we can take what we have learnt and use that expansion to move into different markets and create a more affordable and better product in the future,” said Fraser Foote. The company’s development of the first all-electric ferry in the southern hemisphere proves innovation is alive and well in New Zealand. “We have had such a great reception from people all over the world. Everyone is amazed with what we have achieved. It came down to finding the right group of people who all had different skillsets and worked together as a team to come up with this ground-breaking technology. “Once we get the boat in the water in the next few months, we know it will put New Zealand on the map and hopefully encourage more investment so we can develop the technology even further and make electric boats more commonplace in our country. “The flow on effect for investing local is obvious – increased employment, work for companies
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Company Profile Bonson - A vision for a quality future Industry 4.0 and EMA Bonson Industrial Company produce and source plastic, recyclable and fibre-based packaging for some of the most widely recognised Kiwi brands. From their modern facilities in New Lynn, Auckland, they manufacture injection moulded products predominantly used in the food industry. With a highly automated process they produce millions of units annually, all of which must achieve the high quality standards expected by their wide customer base and final consumers.
The background Bonson have a wide range of in-mould labelled (IML) products where the label and plastic mould are combined at the same time to produce a high-quality finish with an embedded label made of the same material as the container, ensuring full recyclability. This technique automates the labelling process, but also means that every unit must be inspected for quality, especially when the differences between labels can be miniscule but ultimately determine whether the end product is packaged correctly. Historically, where machines had a low number of cavities or longer cycle times and produced only one or two units per injection cycle, the manual process of inspecting and packing the products could be managed by one person across multiple machines. To increase capacity, higher cavity number machines have been introduced, making it more challenging for packing teams to keep up with the logistical elements of the role.
They used the introduction of a new machine (trialling a new product alongside MG and Cryovac) to introduce new vision technologies to control labour costs. It was estimated, based on throughput, that the new machine would require 3 personnel full time to pack the product, an additional labour cost that would have significantly impacted margins on the new product line. The team began an investigation into vision quality systems, settling after much enquiry on Omron, due to the fact that the support and spare parts were readily available from a New Zealand based supplier. The multi camera based system is able to be ‘trained’ by an operator to look for critical characteristics, which can then be saved as a programme to run for that product at any point in the future. The vision based system worked as part of the integrated solution to remove, transfer and stack the product and was able to inspect the product from any angle to ensure compliance to specification. The Bonson team sought the external support of ACSE as a provider of technical support to integrate the system with their machinery. The result was that 100% of products could be inspected for all critical features, or a critical ‘master feature’ that determines whether the rest of the
labelling was correct. The system also allowed them to start capturing validated reject data, whereas the manual system previously resulted in rejects with no known reason codes for the rejection. Additional features were also in scope to be validated by the camera system such as dimensions. This quantitative, validated and reliable data is going to provide a vital foundation on which Bonson can build their future Industry journey by gathering real time insights on quality and detailed diagnostics on possible root causes for any failures. This reduces the reaction time and the potential scrap produced as well as education and understanding for the production teams. The next step is to expand its use across clear plastic products through some adaptations based on learnings from their interaction with Omron, a brilliant example of where building a relationship with a solution provider could really add value to the business. The database of information that will be at Bonson’s disposal will allow them to overlay analytics on the data to gain insights on the quality performance of individual aspects of a machine and insights that can feed into their production scheduling process. Knowing which machines, machine setters and machine parameters provide the best empirical outcome for each product has huge potential to improve OEE.
Key learnings and benefits
To increase capacity, higher cavity number
• Vision systems are becoming more viable in terms of return on investment for ever increasing complexity of products.
machines have been introduced, making it more
• Turning tacit knowledge into empirical data can have potentially far-reaching impacts on other business processes. Here quality data might have a huge impact on product scheduling optimisation in the future.
challenging for packing teams to keep up with the logistical elements of the role. Part of the packing team’s job is to inspect the products for critical features visually as they pack. A new contract led to the introduction of their fastest ever machine, capable of 1 unit per second, which would have required 3 packers full time to quality inspect and pack the product. In addition to the visual checks, dimensional and specification checks around weight, lid fit and crushing performance are also carried out periodically and the data captured in the Manufacturing Execution system. The additional volume increased pressure and targets around productivity, which forced the Bonson team to look outside the box to improve their processes.
The solution The team realised the benefits of capturing empirical data about machine performance, but understood it was unrealistic and expensive to carry this out more frequently using the packaging team due to capacity.
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• Vision systems offer the dramatic increase in data collection and digitisation; essential as a foundation for Industry 4.0 progression.
ADVISORS Mike Shatford
is an expert in the field of technology development and commercialisation. His company Design Energy Limited has completed over 100 significant projects in this vein by consulting for and partnering with some of New Zealand’s leading producers. Among Mike and his team’s strengths are industrial robotics and automated production where the company puts much of its focus.
Sandra Lukey
Sandra Lukey is the founder of Shine Group, a consultancy that helps science and technology companies accelerate growth. She is a keen observer of the tech sector and how new developments create opportunity for future business. She has over 20 years’ experience working with companies to boost profile and build influential connections.
Iain Hosie
Iain Hosie, NanoLayr, Technical Director and Founder Iain is the co-Founder and Technical Director of Revolution Fibres. Iain has been deeply involved in nanofibre production and the development of many unique nanofibre products in the past ten years. Iain co-founded Revolution Fibres in 2009 and led the business since 2012, taking it from a small start-up to a recognszed leader in nanofibre production. Iain has recently moved to the Technical Director role – with a focus on keeping Revolution Fibres at the forefront of textiles innovation.
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The benefits of processing data at the edge, not the cloud -Martin Thunman, Co Founder and CEO, Ede Analytics Patform
The real-time ability at the edge can leverage automatic changes to production according to a pre-determined algorithm, or be evaluated by equipment operators and facility managers to make informed decisions. For machines that need to act on data in real time, or those that perform critical operations, processing data at the edge results in ultralow latency and allows manufacturers to respond to changes much faster. Pre-processing data at the edge also contributes to reduced operational costs. Rather than transmitting all data gathered on the edge of the network to the cloud for analysis, through data aggregation and smart filtering, manufacturers can condense the quantity of data that needs to be sent to the cloud by 99 per cent, which can result in a reduction in bandwidth and cloud service costs.
Optimising data use The rise of 5G will stimulate the next wave of IIoT devices for Industry 4.0. I is estimated sales of 5G-enabled IIoT devices for Industry 4.0 will be at 22.3 million units by 2030. For data collection and analysis, the rise of 5G will
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only mean that there is more data to be collected and processed. Choosing to do this at the edge prepares manufacturers for 5G and beyond.
detection and millisecond-by-millisecond analysis, any unexpected or abnormal machine behavior can be identified instantly.
Enabling quicker and cheaper data analysis, edge analytics helps manufacturers to optimise their production lines by enabling machines to make autonomous decisions without human intervention.
Manufacturers can use data collected at the edge as a trigger. If machine data reaches a defined threshold, the maintenance system can be updated in real time to notify the engineer that a component is running abnormally.
Analysing and integrating data locally facilitates closed-loop automation, to act on data collected from one machine to change the settings of another machine to enhance its performance. Doing this in real time via the edge allows operators to slow down or speed up production, change the quantities of materials used and alter how the machine operates directly in response to data collected from the factory floor.
Enhancing predictive maintenance Additionally, real-time data analysis at the edge facilitates predictive maintenance. Through anomaly
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This can then initiate a work order in the enterprise resource planning (ERP) system to conduct maintenance before failure occurs. Conducting maintenance in this way improves operational efficiency by allowing manufacturers to assess data, monitor machine performance and identify potential causes of equipment failure before they occur, preventing unexpected downtime and improving operational efficiency by as much as 89 per cent.
Fonterra deploys Ada Fonterra, has deployed Ada, an intelligent bot or ‘digital worker’, to optimise its international business. Fonterra ships to 125 countries, which require around 800 variations of label templates, to comply with international food trade requirements and include differences such as format, language and other critical information. Supply chain administrators were conducting approx. 20K label requests and validations per year to support the 2.5 million tonnes of food being exported by Fonterra annually.
This process has initially been manual and human error proved to be a high risk, which could lead to perishable product being refused entry at foreign ports.
• Accelerated timelines for requesting, approving and sending labels to distribution centres – down from up to 24 hours to less than 10 minutes
has
• 70 digital workers deployed in the supply chain team
• 100% accuracy of reading and comparing shipping
• Integration with external label provider and printer
Since
Ada’s
implementation,
Fonterra
experienced: labels
New digital identifiers help prepare businesses for the future New Zealand businesses will be able to find exciting innovation opportunities thanks to new globally unique digital identifiers for different parts of their business. NZBN Organisation Parts, linked to a business’s legal entity identifier, the New Zealand Business Number (NZBN), and reinforced by a global international standard, will accelerate businesses’ adoption of digital ways of working. A business can assign Organisation Part identifiers to its different physical or logical parts (e.g., branches, departments, and delivery addresses) to enable accurate, safe digital interactions, and ensure key messages between trading partners (e.g., purchase orders, invoices, and deliveries) will be directed to the right place. “Organisation Parts will future-proof and empower businesses to innovate, digitise, and compete in the evolving digital economy”, says Ross van der Schyff, General Manager Business & Consumer at the Ministry of Business, Innovation & Employment (MBIE). “The NZBN ecosystem has evolved to meet customer needs and now reflects New Zealand businesses’ structures and digital interactions. Organisation Parts will help businesses prepare for exciting opportunities, such as e-invoicing, secure transactions, and cloud-based information sharing, available with the growing digital economy.”
Dr Peter Stevens CEO, GS1 New Zealand, noted the importance of businesses being globally connected for New Zealand’s status as a trading nation.
Businesses both large and small will find the NZBN, and Organisation Parts, a valuable tool in creating future digital enhancements.
“GS1’s Global Location Numbers were chosen by the Government in 2013 because they are globally unique, and part of a credible international system with strong links to trade and supply chain logistics.
Underpinned by leading global digital infrastructure, Organisation Parts will accelerate New Zealand’s journey towards becoming a truly digital nation, a key aspiration that Minister for Small Business Stuart Nash outlined recently.
“Future uses of Organisation Parts could include creating digital pathways to track food from the paddock to the plate, car parts to the manufacturer, and medicine to specific cabinets in a hospital.” Active tech investor Serge van Dam says that the NZBN - now augmented with Organisation Parts – is the unique digital key that the digital ecosystem needs. “If businesses, technology providers and the Government adopt it in earnest, we can enhance the efficiency and productivity of our economy, delivering widespread economic gains and streamlined processes for New Zealanders, particularly business owners and operators.” Over 831,000 businesses already have an NZBN, allowing them to trade with confidence and certainty, connect and interact more easily, with more accuracy, and save time and money.
“Agencies like Xero and New Zealand Institute of Economic Research (NZIER) estimate real GDP could increase between $3.5b and $6.2b if there was just a 20 percent increase in the uptake of cloud computing alone,” Minister Nash said in May.
Over 831,000 businesses already have an NZBN, allowing them to trade with confidence and certainty
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Choosing the right robotic solution for every application Though industrial robots have their individual strengths, manufacturers should consider the requirements of their application before deciding which to purchase. The payload, stroke length, precision and flexibility needed will all influence whether a linear or articulated robot is the right choice. savings, initial cost and ongoing expenditures should also be taken into account. Cartesian robots are generally lower in cost than articulated robots. They also tend to be reliable, thus incurring lower costs in maintenance and downtime.
The existing infrastructure should also be a factor, and which type of robot would integrate more effectively. Three of the most popular robot types are Cartesian, six-axis and SCARA robots.
Cartesian Robots Cartesian robots are a common choice in industrial applications. They operate by moving along three orthogonal axes using the Cartesian Coordinate system. They are also known as linear robots, as they move in a straight line along a support frame, rather than rotating. Cartesian robots do not offer as much in terms of flexibility as articulated robots. They are an excellent choice for processes that require strength and reliability, but for applications requiring more degrees of freedom, an articulated robot may be more suitable. The rectangular work envelope on a Cartesian robot means that more of its footprint is active workspace, with no ‘dead zone’. This is more circular in a six-axis robot, meaning that there is more dead space, but the larger number of axes allows more range in the types of movement that can be done. The footprint of a Cartesian robot is well defined and thus can be easily integrated into existing infrastructure. They may require a lot of space to install and run but can be mounted overhead or on walls depending on the size, saving space on the ground floor. Speed is another important factor to consider — speed impacts cycle times, so the speed capabilities of the robot should fit manufacturer requirements in terms of productivity and output. Cartesian robots are a great choice for processes requiring high speed and fast acceleration over a range of distances.
The actual application that robots are required for should also be considered. The speed and rapid acceleration of Cartesian robots, along with their precision in positioning make them a great choice for a range of industrial processes including pick-and-place, loading, 3D printing and material handling applications. They can be fitted with a variety of effectors, brackets and controls to suit individual requirements. In terms of reliability, cost reduction and productivity, they can be highly beneficial to an industrial operation that requires high speed and high precision.
Six-axis robots Articulated robots, such as six-axis robots, are typically mounted on a pedestal. Compared to Cartesian robots and four-axis models, such as SCARA robots, they offer a larger range of motion, with additional flexibility in movement and directional control. Along with moving vertically and horizontally, they can also roll, pitch and yaw — rotating around the X, Y and Z axes, respectively. Thanks to this flexibility, six-axis robots can carry out movements that simulate the actions of a human arm. When someone refers to a robot arm, they are typically describing a six-axis. Six-axis models can also operate between different planes and levels, increasing the possible applications these robots can be used for. For more complex applications requiring sophisticated motion sequences, such as automotive assembly, articulated robots are a more effective choice. Compared with Cartesian robots, the payload capacity of six-axis robots is more limited, as weight must be carried on an extended arm component rather than a rigid support frame. This should be considered if applications require the movement of heavy payloads. Six-axis robots are usually mounted on a pedestal, which also limits their reach.
Another attractive feature of Cartesian robots is the ease of programming, installation, and use. Programmes can be reconfigured in the event of design changes or if a new process is required. Factors such as speed, stroke length and precision can all be easily altered depending on the requirements of the application.
Programming a six-axis robot is more complex than its linear counterparts due to the complexity of movement. They must be designed to work in a three-dimensional space with multiple rotary motions. However, they can also be programmable to adapt to changes in operation and are multi-application capable.
A single controller can also be used to control multiple robots. Though more specific programmes can be designed for higher level processes, basic functions can be programmed even by those without prior experience.
In terms of financial expenditure, six-axis robots do tend to be more costly, but this is justified if the application is more complex.
Though industrial robots can offer long-term financial
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Though their configuration may limit payload size and distance, the superior directional control and flexibility of six-axis robots allows them to carry out
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movement that linear robots cannot. With their increased versatility, six-axis robots can be used for intricate tasks including pick-and-place, assembly, welding, machine tending, palletising, and handling, among many others. They are also suitable for painting, packaging, and material removal.
SCARA robots SCARA (Selective Compliance Articulated Robot Arm) robots have a parallel axis joint layout, making them compliant on the X-Y axis and rigid on the Z axis. SCARA robots have a smaller footprint, especially in comparison with Cartesian robots, and the pedestal is unobtrusive, making integration into the workspace relatively easy. As with other articulated robots, they have a circular work envelope. This does result in more ‘dead space’ than with a linear robot, but as they do have four-axis movements within this space they have good flexibility of motion. SCARA robots’ smaller size may limit their potential applications in comparison to six-axis robots, which are available in a greater size range, but makes them suitable for small-scale processes that require speed and precision. They also have a reduced reach as they are mounted on a fixed pedestal. As with six-axis robots, the payload capacity on SCARA robots is lower than Cartesians, as its joints are located at the end of the arm. This results in more unsupported mass, making them more suitable for applications using smaller and more lightweight parts. They are faster than both Cartesian and six-axis robots due to the rigidity of their design, allowing rapid motions and superior levels of repeatability, making them ideal for highly precise assembly applications Generally SCARA robots are lower in cost than six-axis robots and have an excellent price to performance ratio in high speed tasks, but are still more costly to implement than Cartesian robots. They do not have the same level of freedom of movement as a six-axis robot, but are still versatile enough for a diverse range of applications. Processes that could benefit from SCARA robots include high speed pick-and-place, materials handling, packaging, palletising and depalletising, machine loading, and small parts assembly. Though industrial robots offer a multitude of benefits, it is still important that they are maintained effectively to reduce downtime and lost revenue. Industrial automation can be complicated, but there are options available for all processes and operations. To fully reap the benefits, considering all aspects of an application is key. Making the right choice can bring significant increases in productivity and efficiency along with reductions in costs and downtime.
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Teamwork- not just tech – drives sustainable innovation Procurement specialises in contracting across the supply chain, managing vendors and providing a template for business success and a more sustainable future. We have to take a more human-centric approach to the way we run our businesses and tackle major global challenges if we are to achieve those ambitions and collectively make a difference. The time for hierarchical companies is gone – now the focus is on being flexible and empowering the right experts to take ownership of specific tasks, even between competitors. This is particularly important for those of us working towards a carbon neutral future – where the decisions and investments we make today will directly contribute to the economic, environmental and social viability of the world tomorrow.
The power of people An organisation is only ever as good as its people, and it is their intelligence, skills, productivity and loyalty that form the backbone of a strong business. You can copy processes and technologies, but you can never replicate human beings. Call this human capital – the intangible, but no less important, qualities that shape a company’s balance sheet. Investing in the growth of employees is how a company can stay healthy.
This is ‘brain drain’ – the loss of well educated people from less developed countries into countries that offer those people more earning potential and greater career opportunities – and it can have a devastating impact on essential services such as healthcare and education in those home countries. The same is true on a smaller scale for organisations. Exacerbated by the Covid-19 crisis, many businesses have seen employees leave due to any number of poor decisions – from a lack of investment in technologies to allow for productive remote working through to a lack of safety measures available as workers begin to make their way back into offices. In the case of Volvo, their supply chain partners have had to work seven days a week to mitigate industry shortages of semi-conductors, steel, plastic, rubber, chemicals etc, and there has been a high rate of absenteeism due to Covid-19 which has hampered production and deliveries. Exhausted workers have reached their limit. In this situation it would have been completely counterproductive to put more pressure on supply chain partners. Instead, Volvo have co-operated on a level never seen before. Being absolutely transparent and open for discussions on how they can change the situation to make the company stronger.
Losing good people can cause organisations, industries and even countries to suffer.
Also recognising hard work and extending gratitude to employees has been one way to strengthen motivation to endure and keep fighting together.
We are in a historical global supply chain crisis and the only way out is to continue to fight as one team and support one another by increasing transparency but also implementing innovative predictive systems.
We are in a historical global supply chain crisis and the only way out is to continue to fight as one team and support one another by increasing transparency but also implementing innovative predictive systems.
—Andrea Fuder, Chief Purchasing Officer, Volvo Group
To survive difficult times we also do need our supply chains to be resilient. One way to do that is to focus more on resilience through regional value chains.
Iran was ranked as the highest in workforce migration among 90 countries in 2006, with over 180,000 people leaving each year due to the political, social and economic upheaval of the time.
And we currently do see significant investment readiness in the US and in the European Union now
to localise the semi-conductor industry. This is needed for core technologies where the high regional concentration has increased the vulnerability of the global industry. However, one size doesn’t fit all. The regional approach should not take jobs away from people in economically challenged countries. We cannot increase the prosperity of some countries and forget others that are dependent on their export business. We need to secure a balance.
Collective change for a carbon neutral future The many different competencies that represent unique human capital at Volvo Group, and those of our supply chain partners, are what allows the company to deliver intelligent manufacturing and develop new and emerging technologies. It is these technologies, ideas and perspectives combined to continuously drive better and smarter sustainable transport solutions. The thread that connects us all is sustainability. It is why sustainability is put at the heart of any purchasing decision we make. We not only work with our employees, but across the whole value chain, to encourage everyone to support and protect the environment. Businesses should not put requirements on supply chain partners, but rather develop solutions together and learn from and inspire each other. Volvo Group have set the target for net-zero value chain greenhouse gas emissions by 2040.
Sustainable collaboration Coordinated action can be difficult to manage because of complex ambitions and diverse drivers beyond the individual organizations, but partnerships – built on strong human relationships – can accelerate game-changing innovations.
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NZ MANUFACTURER
FEATURES September 2021 Issue
A simulation approach to autonomous heavy equipment safety -Alex Teo, Managing Director and Vice President Sou1
SUPPLY CHAIN
Autonomous technology existed long before the era of the COVID-19 pandemic – but its true value was only realised when companies had to confront a complete redesign of processes and operations due to logistical and supply chain disruptions, labour shortages and workspace restrictions.
COMPANY PROFILE
The crisis led to the rapid adoption of autonomous technologies. In fact, the global automobiles and heavy equipment market is expected to grow from $244.88 billion in 2020 to $394.85 billion in 2025, with Asia Pacific predicted to grow at the highest compound annual growth rate.
THE CIRCULAR ECONOMY
With burgeoning growth on the horizon, how can heavy equipment operators ensure that they are well-positioned to capture the benefits of autonomous technology?
The rise of autonomous operations in the heavy equipment industry
SMART MANUFACTURING
Partial or fully automated machine operations is a solution that most industry stakeholders are implementing to enable remote operations while improving safety and operability. With an increasing number of Advanced Driver Assistance Systems (ADAS) features like remote-control driving/actuation or fully autonomous driving, the interactions between the operator and the vehicle are being reshaped.
DISRUPTIVE TECHNOLOGIES
Furthermore, the implementation of autonomous heavy equipment operations will mean the partial or full replacement of a skilled operator. In order to do so, companies will need to rely on advanced technologies such as the digital twin and simulation software to develop a strong comprehensive digital framework that supports autonomous heavy equipment - optimised for safety, operability and efficiency.
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The role of simulation and of the digital twin
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Model-based systems engineering (MBSE) is an approach that fits perfectly with the development of autonomous vehicles – many companies have been using it for years.
Editorial Copy Deadline – 10 September 2021 Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz
When it comes to product design and performance engineering, the MBSE approach brings the ‘Digital Twin’ of the product/vehicle as well as its environment. This allows engineers to virtually explore the autonomous vehicle designs, as well as accelerate advanced control verification and validation, which can be tough for vehicle durability and expensive if pursued using a classical physical testing approach.
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Autonomous heavy equipment natural environment simulation
Doug Green,
When it comes to natural environment modelling, the simulation solution should be open and flexible enough to allow the import of any type of off-road vehicle geometric models, geometric terrains with a relevant drop, slopes, obstacles (rocks, trees, pedestrians etc), and harsh conditions implied by the natural environment seasonality (rain, fog, dirt, day & night etc).
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Besides that, to create a good virtual digital twin of the field environment, the simulation solution should ensure that objects have a good enough geometric description and material property description by considering what is important for each sensor modality: camera, LiDAR and radar.
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This allows the solutions to perfectly match with conditions regularly encountered by heavy-equipment vehicles.
NZ Manufacturer August 2021
Example of agricultural environment, including natural obstacles and moving machines.
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Any relevant obstacles associated with the scenarios of interest can be implemented as part of the environment. The objective is to analyse the sensor’s detection and object recognition algorithm performances. Obstacles such as rocks, trees, crops, pedestrians and infrastructure are elements that are relevant for our autonomous heavy equipment simulation environment, adding object motion when necessary.
Recognition drone with embedded FHD 50Hz RGB Camera as a support of Humvees platooning in harsh environments.
Nevertheless, heavy equipment operators should expect to see significant safety and efficiency benefits in the long term as a result of implementing automation technologies. Excavator model evolving in a bumpy environment used for sensor perception algorithm verification and validation.
Physical sensor modelling A physical sensor modelling solution is crucial for a simulation platform dedicated to autonomous operations development, and the optimization and configuration of the sensor design can be done virtually to a large extent. From basic ground truth sensors (that identify all objects that appear in the sensor range), through probabilistic sensor models (that allow for fault insertion and filtering), up to physics-based sensor models (for raw data simulation), sensor modelling can support engineers with balancing accuracy and computational time of sensors simulations based on mission/scenario requirements, for an improved engineering workflow efficiency.
With more industry players jumping on the automation bandwagon, the faster pace of digital transformation will help the industry become more agile in its operations and build better resilience from future supply chain disruptions.
The more physics you implement the more robust your control will be, improving operability and safety.
On top of the sensor modelling, engineering departments can use simulation to optimize the machine design itself for better sensor performances. For example, to prevent sensor soiling or too much electric/electromagnetic disturbance from a metallic bumper covered by mud or rain, both of which impact heavy equipment vehicles daily and yet not considered enough in current solution portfolios.
Analysis results on the effect of rain and mud drops on the camera lens and radar antenna gain
Heavy equipment vehicle modelling A skilled operator has hours of machine operations background experience. In order to improve the performance of the autonomous operations of the vehicle, it is mandatory to include accurate dynamics within the control virtual training, verification, and validation process. From soil and tire model to the vehicle dynamics, the more physics you implement the more robust your control will be, improving operability and safety. The automation of heavy equipment also positively impacts other operational attributes. It enables better control of the energy distribution, or yet powertrain actuation resulting in improved powertrain durability, keeping the machine within the safety zone of loads. That being said, the machine type is not just limited to ground vehicles but can be extended to integrate autonomous drones and flight dynamics, where its capabilities can be used to optimise terrain recognition, crop identification, and supporting autonomous vehicle decision strategy.
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New Products Simpler Industry 4.0 connections with expanded single-pair Ethernet range Single-Pair Ethernet (SPE) is a key technology in the advancement of the Smart Factory and Industry 4.0. It enables more consistent and more efficient Industrial Ethernet networks and only needs one pair of cores to transmit data. Previously, 2 and 4-pair Ethernet cables have been the standard. By shifting to single pair cables, the time and material saving enables new smart components to be integrated into the network, which were previously not networked via Industrial Ethernet. “With the ETHERLINE T1 product family, global cable and connector leader, LAPP, was already ahead of the game in presenting prototype single-pair Ethernet cables for use in industrial machinery and systems,” says LAPP Australia General Manager, Simon Pullinger. ETHERLINE T1 Y Flex 1x2x22/7 AWG cables maintain the same high data rates as previous technology, while significantly reducing the setup required. The new cables are ideal for a broad range of Industry 4.0 applications, including manufacturing, electrical connection, generation and factory automation.
power
The UL-certified two-core cable for highspeed information exchange has a small bending radius and outer diameter, is exceptionally lightweight and is indispensable for connection at the field level. The Power-Over-Data-Line compatible cable complies with IEEE 802.3bu and has been specially designed for transmitting digital signals in the frequency range up to 600 MHz over distances of up to 40 m. It enables a simultaneous power and data supply to SPE terminals with low energy consumption (up to 50 W). The design of the SPE cable guarantees ideal
The LAPP portfolio already includes single-pair Ethernet cables. The company has based the connector on the standardised connector face set out in IEC 63171-6. LAPP will provide the complete solution for single-pair Ethernet infrastructure in industry.
protection against electromagnetic interference. Thanks to an aluminium-laminated foil and copper braid screening with a high degree of coverage (SF/ UTP), it is double shielded.
The IEEE 802.3 bp standard describes a physical layer that permits 1 Gbit/s via single-pair twisted pair copper cables over a distance of 40 m with shielded cables or 15 m with unshielded cables.
In addition, the PVC outer sheath is resistant to acids and alkalis and is partially oil-resistant. As a UL-listed Power Limited Tray Cable (PLTC), the new single-pair Ethernet cable can also be installed openly on cable trays.
Possible applications in manufacturing automation include connection of Gigabit communication devices in the control cabinet or sensors with high data rates such as high resolution imaging systems.
ETHERLINE T1 Y Flex 1x2x22/7 AWG opens up a host of futureproof possible applications in automation technology, including:
However, the IEEE 802.3 bw standard allows the same cable lengths for 100 Mbit/s. Particularly because of the reduced distance, this technology may also be of interest for connecting devices in the control cabinet.
• Flexible use in dry and damp rooms, as well as for medium mechanical stress, • For structured cabling in compliance with DIN EN 50173 and ISO/IEC 11801, • For single-pair Ethernet applications - 1000Base-T1 in compliance with IEEE 802.3bp and 100Base-T1 in compliance with IEEE 802.3bw.
Two further cables will be available soon: the ETHERLINE T1 FD P, a shielded 26AWG cable for Gigabit Ethernet and use in cable chains, and the ETHERLINE T1 P FLEX 18AWG for 10 Mbit/s and distances of 1,000m.
Greater efficiency with iglidur polymer linear bearings New, cost-effective drylin linear bearing ensures fast, lubrication-free movements
Treotham showcases what plastics can do with its first igus drylin W linear bearing made entirely of tribo-polymers. The linear bearing has been developed specifically for linear movements. At just ten grams, it is quick to install, vibration-dampening, lubrication-free and ideal for transportable applications. The fact that it is injection moulded makes it very cost-effective. The injection moulding-optimised design also reduces its weight, lowering the necessary linear system drive energy.
The slim bearing, just ten grams at Installation Size 10, has several advantages for those new to linear technology who need a simple linear guide for applications, such as adjusting tabletop devices, cameras, sensors or monitors. The bearing is made of iglidur JB, a tribologically
Durable, lightweight and low-cost: the new igus drylin W linear bearing is made entirely of iglidur polymer, so it can be manufactured quickly, simply and cost-effectively with injection moulding. The liner and linear housing are combined in a single component that simplifies handling, from storage to installation. The iglidur polymer bearing weighs up to 84% less than classic linear bearings with their metallic housings. There is thus less mass to move, so force, motor output and energy consumption falls.
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optimised high-performance polymer, so it needs no lubrication or maintenance and is durable and resistant to dust and dirt. The black material is remarkable for its very low coefficient of friction in dry running and very low stick-slip tendency. The polymer bearing can handle loads of up to 25 newtons with ease, as tests performed in the igus 3,800 square metre in-house laboratory in Cologne show. It is also impact-resistant and robust while remaining elastic and damping so that it can absorb and dissipate vibrations.
Cost-effective econ system with an elegant design The new bearing can be installed very easily on any drylin W single rails or double rails. If the user is looking for a cost-effective linear guide, Treotham’s clear anodised igus drylin W WS-CA aluminium rails are a good choice. Combining the two materials – silver aluminium and black bearing material – gives the user a complete solution with a simple, elegant design.
New Products Hyster UT Series 4-5t forklift for driver comfort A new range of the Hyster UT Series provides enhanced driver comfort and a low total cost of ownership for the forklift operator.
• Improved lift speed, which enables higher productivity. Features of the new H4.0-5.0UT series. From top left, moving clockwise, small diameter steering wheel, high-strength overhead guard, large access area for service and repairs, and excellent through-mast visibility
The H4.0-5.0UT internal combustion counterbalance pneumatic tyre forklifts, with lift capacities from 4,000-5,000kg, complement the broader range of Hyster UT Series forklifts in providing cost-effective performance for everyday materials handling tasks. The H4.0-5.0UT range features the toughness and backup Hyster is known for globally, but without any advanced functionalities that aren’t required for less frequently used forklifts, meaning total cost of ownership is kept low. “Industries that may sometimes require less frequent use forklifts – such as food and beverage, frozen produce, manufacturing, distribution and truck and transport – don’t need the advanced features of 24/7 operations, but they do need a quality forklift with outstanding sales and service backup, which is what Hyster can deliver, through its distribution network,” says Mr Chaffey. “The Hyster H4.0-5.0UT range delivers an ideal solution to less frequent materials handling needs, without compromising on performance,” he says.
Driver-focused features The new H4.0-5.0UT forklifts – in 4,000kg, 4,500kg or 5,000kg models – have a number of features to further enhance driver comfort, visibility and ease of operation, including: • A small diameter steering wheel with adjustable steer column. The 300mm steering wheel is
easy to manipulate, responsive, with optimum manoeuvrability when working confined spaces. The ideally positioned steering wheel allows 8 degrees of tilt adjustment, to suit a variety of different operators. • A high-strength profiled steel overhead guard to provide enhanced reliability and operator protection. • Excellent through-mast visibility of the load and the operator’s forward field of view, which optimises comfort, safety and productivity. • A large access area for service and repairs, including large access space to the engine compartment to minimise downtime when servicing the forklift. • A suspension seat for excellent comfort. • Exchangeable components, including overlaps with other forklifts in the same range, which further optimises maintenance and spare parts inventories.
The new machines’ value proposition – “Meets the Need. Makes the Move.” – relates to customers who don’t need particular advanced functionality features, but prefer proven materials handling solutions backed by a supplier which they can trust – and that can provide the support of a reputable service network extending across Asia Pacific, including Australia, New Zealand, Thailand, Malaysia, Vietnam, Indonesia, Singapore, Philippines, Korea and Taiwan.
Simple serviceability and low cost of ownership The use of high quality, robust components, efficient filtration and excellent cooling helps contribute to reliable operations and lower wear and tear. This, together with the fast availability of cost-effective replacement parts, reduces service maintenance requirements and costs. “Due to the simplicity of components and specifications, servicing can be carried out swiftly and cost-effectively. Large access areas combined with simple, exchangeable components further optimise maintenance and minimise total cost of ownership,” says Mr Chaffey.
C6 e-chain: New design and brasion-optimised materials of the highest class Treotham presents the design study of a particle-free and lightweight energy supply system High abrasion resistance is crucial for machine elements in cleanrooms. igus has therefore now developed the C6, an energy chain designed to meet the highest cleanroom class. The new chain is specially designed for longer unsupported applications on machines and systems, and is based on the successful E6 and E6.1 cleanroom series from igus. A new connector system and a specially tribologically optimised high-performance polymer make the design study from igus even smoother, easier to assemble and virtually free of any particles in motion.
igus has developed a new energy chain under the abbreviation “C6”. “C” stands for its place of use: the cleanroom - and “6” for the number of individual parts per chain link. The new energy supply system was developed by igus on the basis of its successful E6 and E6.1 energy chain series, which are used worldwide, and has now been further optimised as a study. With the new energy supply system, cables and hoses are to be guided in an abrasion-resistant and smooth manner even on medium travel distances in cleanrooms such as in electronics production, the semiconductor industry, in packaging machines, medical technology and also in pharmaceutical production.
Fraunhofer IPA. Test series with the new e-chain are currently running in the in-house cleanroom laboratory in Cologne. Initial tests show the high abrasion resistance of the chain, so the company is optimistic that it will also receive cleanroom class 1. The C6 e-chain and all other igus products are available from Treotham Automation.
For this, igus relies on a new type of connecting system for the individual chain links, which makes the chain easy to assemble and lightweight, as well as strong and vibration-dampening. C6 to meet the highest cleanroom class The idea for the C6 was developed in co-operation with a large electronics manufacturer and the
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Developments Feeling our way towards hydrogen Tina Schirr, Executive Director, BusinessNZ Energy Council Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use. Hydrogen fuel is highly desirable - clean hydrogen produces none of the harmful emissions of other energy sources. So hydrogen is potentially a very good energy source for powering our post-carbon world. But there’s a catch - production of hydrogen is not economic at present and currently can’t be produced cost-effectively. As a result, countrie s are taking the initiative in different ways as they feel their way towards a hydrogen-powered future. Recently, the World Energy Council (WEC) released a report on hydrogen - Hydrogen on the Horizon: Ready, Almost Set, Go?: the BusinessNZ Energy Council, WEC’s representative in New Zealand, contributed to the report, along with 128 other countries.
New Zealand is becoming integrated into such partnerships, signing bilateral partnership agreements with Japan and Singapore and partnering with Germany on green hydrogen research projects. New Zealand is also among the countries that are seeking ways to produce hydrogen cost-effectively. Last week Contact Energy and Meridian Energy called for expressions of interest to develop a hydrogen production plant in Southland. Their thinking is that a new hydrogen industry could potentially take up the excess electricity from our bountiful, renewable hydro generation. If the exploration of the potential for hydrogen as a cost-effective fuel is successful, it would be a wonderful addition to New Zealand’s energy system as a whole. New Zealand’s unusual energy profile, with our predominance of renewable hydro energy, would seem to be ideal for producing hydrogen in the cleanest way possible.
The report highlights the global activity that’s occurring in the development of hydrogen as a fuel source.
Other forms of production, e.g. from nuclear generation, would be more problematic because of perceived safety or environmental issues.
A number of countries in the Middle East, North Africa and the Americas are focusing on producing hydrogen. Others, in Asia and Europe, are more focused on procuring it.
Perceptions around the method of hydrogen production are important, the WEC report says, because a key concern facing energy policy makers is how to trigger demand.
Their reasons for looking to hydrogen are varied including its potential to diversify energy sources, decarbonise economies, allow for repurposing infrastructure, and to grow green jobs and green economies.
WEC notes that the current hydrogen ‘conversation’ is heavily focused on supply, without paying much heed to the role of hydrogen users. But it’s important to explore what’s needed to spark demand by consumers, including a specific focus on the development of hydrogen infrastructure and a global supply chain.
Some countries - notably Germany, Japan, South Korea and Singapore - are partnering with others to ensure they can achieve global hydrogen supply chains and adequate supply once hydrogen becomes cost-effective to produce in significant quantities.
So we are in an unusual situation: we have hydrogen producers trying to find a way to produce hydrogen fuel cost-effectively, while at the same time energy
policy makers are trying to prompt demand and get the hydrogen infrastructure set up so they’re in place by the time that cost-effectiveness becomes a reality! This shows the complexity of the task of achieving our post-carbon environment And it highlights the significant risks facing those companies that choose to invest in that task. Companies investing hard-earned dollars in innovative, green business ventures are doing us a great service. For example local company Hiringa Energy is currently working to establish a nationwide network of hydrogen refuelling stations to be supplied by locally produced hydrogen. We should watch this work with interest, along with the proposal for a hydrogen production plant in Southland and other business ventures involving hydrogen here in New Zealand. And we should take note of what other countries are doing as they feel their way towards an eventual global hydrogen industry. The way isn’t clear yet, but the fact that so many countries and companies are working towards the hydrogen goal gives a great deal of hope.
ATNZ appoints new CEO to drive future vision Apprentice Training New Zealand (ATNZ) is thrilled to advise Rebecca Smith has been appointed to the newly created position of Chief Executive Officer to lead the Group Training Organisation (GTO) organisation into its new exciting phase. ATNZ Board Chairman John Blakey said Ms Smith has a wealth of experience and expertise, vital to leading the GTO which from Monday 02 August became a standalone entity, separate from Industry Training Organisation Competenz, with which it has partnered closely since 2010.
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“Rebecca brings strong strategic leadership combined with an impressive career in marketing and business. Most recently the Executive Director of the NZ Story Group, Rebecca is focused on driving growth, acquisition, and retention. She has more than 20 years of experience in marketing and brand leadership across various industries, including senior marketing leadership roles with Fonterra, BNZ and Telecom. We are delighted to have a leader of her calibre on board”.
and commercially independent Private Training Establishment within the next two years.
ATNZ is the country’s largest employer of apprentices in mechanical engineering and related industries. As a GTO, ATNZ places their 360-plus apprentices into “host” companies where they work and learn their trade.
“We want to express our gratitude to Susanne for all her mahi. We value how Susanne has always led from the front with passion and grit: this was especially evident through the huge challenges of the global pandemic: on our people, host and apprentices, and the organisation as a whole. This has put ATNZ in great heart, ready for what will be a significant transformation over the next few years, and we are very appreciative.”
As well as the separation from Competenz, part of the government’s ongoing Reform of Vocational Education, Mr Blakey said ATNZ has an exciting vision for the future. The GTO will expand to also become a vibrant
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Ms Smith joins ATNZ to drive this vision to fruition and lead the team of 22 staff from Monday 9 August 2021. Mr Blakey said the ATNZ board acknowledge and deeply thank ATNZ General Manager Susanne Martin for the commitment and energy she has brought to the role over the last three years.
Rear View Why we need engineers who study ethics as much as maths The recent apartment building collapse in Miami, Florida, is a tragic reminder of the huge impacts engineering can have on our lives. Disasters such as this force engineers to reflect on their practice and perhaps fundamentally change their approach. Specifically, we should give much greater weight to ethics when training engineers.
Travis Waller
Kourosh Kayvani
Lucy Marshall
Robert F. Care AM
Professor and Head of the School of Civil and Environmental Engineering, UNSW
Adjunct Professor of Engineering, UNSW
Professor, School of Civil and Environmental Engineering, UNSW
Professor of Practice, School of Civil and Environmental Engineering, UNSW
Engineers work in a vast range of fields that pose ethical concerns. These include artificial intelligence, data privacy, building construction, public health, and activity on shared environments (including Indigenous communities). The decisions engineers make, if not fully thought through, can have unintended consequences – including building failures and climate change. Engineers have ethical obligations (such as Engineers Australia’s code of ethics) that they must follow. However, as identified at UNSW, the complexity of emerging social concerns creates a need for engineers’ education to equip them with much deeper ethical skill sets. Engineering is seen as a trusted and ethical profession. In a 2019 Gallup poll, 66% rated the honesty and ethical standards of engineers as high/ very high, on a par with medical doctors (65%). However, ethics as a body of knowledge is massive. There are nearly as many academic papers on ethics as mathematics, and clearly more than on artificial intelligence. With such a rich backdrop of knowledge, engineers must embrace ethics in a way that previous generations embraced mathematics. Complex societal problems make much greater demands on engineering thinking than in the past. We need to consider whole and complex systems, not just issues as individual challenges. Ethics and the construction industry The construction industry provides a topical example of such complexity. Opal Tower in Sydney, Lacrosse building in Melbourne, Grenfell Tower in London and Torch Tower in Dubai became household names for all the wrong reasons. Importantly, these issues of poor quality and performance don’t arise from new technology or know-how. They involve well-established technical domains of engineering: combustible cladding, fire safety, structural adequacy and so on. A fragmented design and delivery process with unclear responsibility and/or accountability has led to poor outcomes. These issues prompted the Australian Building Ministers’ Forum to commission the Shergold Weir Report, followed by a task force to implement its recommendations across Australia. There are real shortcomings in the legal and contractual processes for allocating and
“commoditising” risk in the industry. However, ethics should do the heavy lifting when legal frameworks are lacking. One key question is whether erosion of professional ethics has played a part in this state of affairs. The answer is a likely “yes”. Engineers face ethical dilemmas such as: • “Should I accept a narrow or inadequately framed design commission within a design and build delivery model when there is no certainty my design will be appropriately integrated with other parts of the project?” • “How can I accept a commission when my client provides no budget for my oversight of the construction to ensure the technical integrity of my design is maintained when built?” • “How do I play in a commercially competitive landscape with pressures to produce “leaner” designs to save cost without compromising safety and long-term performance of my design?“ • “Do I hide behind the contractual clauses (or minimum requirements of codes of practice) when I know the overall process is flawed and does not deliver quality and/or value for money for the end user?” Or worse: “Do I resort to phoenixing to avoid any accountability?”
Engineering on Country The enduring connection of Aboriginal Australians to Country requires engineers to navigate ethical considerations in Indigenous communities. Engineers must reconcile the legal, technical and regulatory requirements of their projects with Indigenous cultural values and needs. They might not be properly equipped to navigate ethical scenarios when they encounter unfamiliar cultural connections, or regulations are insufficient. Consider, for example, the sacred sites of the McArthur River Mine. Traditional owners have raised concerns that current mining activities do not adequately protect sacred and cultural heritage sites. Evidence given by community leaders provides insight into the intimate and diverse relationship that traditional owners have with the land. In considering such evidence, engineers must be able to evaluate both physical site risks (such as acidification of mine tailings and contamination of water bodies) and cultural risks (such as failing to
identify all locations of cultural value). How might we tackle such complicated projects? By properly engaging with traditional communities and by having diverse teams with multiple worldviews and experiences, along with strong technical skills. The broad field of ethical knowledge provides the skill sets to attempt to reconcile the diverse considerations. What should the curriculum look like? Engineering students’ ethical development requires a holistic approach. One assessment suggested: “[…] that institutions integrate ethics instruction throughout the formal curriculum, support use of varied approaches that foster high‐quality experiences, and leverage both influences of co‐ curricular experiences and students’ desires to engage in positive ethical behaviours.” The curriculum should include: • skills/expertise – the underlying intellectual basis for discerning what is ethical and what is not, which is much more than codes of conduct or a prescriptive, formulaic approach • practice – practical know-how in terms of ethical solutions that engineers can apply • mindset – having an individual and group culture of acting ethically. The engineers’ problem-solving mindset must be supplemented by constant reflection on the decisions made and their ethical consequences. Ethics is not an “add-on” subject. It must permeate all aspects of tertiary education – teaching, research and professional behaviour. While the arguments for acting now are strong, market realities will also drive the process. The upcoming generation will likely displace those who are slow or reluctant to adapt. For instance, engineering firms are under pressure from their own staff on the issue of climate change. More than 1,900 Australian engineers and nearly 180 engineering organisations have signed a declaration committing them to evaluate all new projects against the need to mitigate climate change. Future engineers must transcend any remaining single-solution mindsets from the past. They’ll need to embrace a much more complex and socially minded ethics. And that begins with their university education.
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