NA Manufacturer July 2017 by Media Hawkes Bay Limited

July 2017

Need High Quantities of Prototypes Fast? www.nzmanufacturer.co.nz

10 PROJECT MANAGEMENT

MANUFACTURING TECHNOLOGY How Kiwi tech helped Team NZ bring the America’s Cup home.

Speed up, reduce waste and get ahead!

direct3dprinting.com.au

SMART MANUFACTURING Companies finding value in the circular economy

The spirit of

disruptive innovation

Automation

brings risk There is a huge “jobsolescence” factor that has become more relevant in recent years. This means that some jobs will be rendered obsolete. An estimate of 9% to 50% of the labour forces of developed countries are susceptible to automation in the coming decades, but even at the 9% low end of the estimates, this can cause significant social unrest – not to mention the 50% nightmare possibility… However, jobs are facing multiple scenarios in upcoming years. The first scenario is replacement or substitution of jobs with automation.

How often have you heard someone in your work circles say, “Nowadays we don’t see work more than two to three weeks ahead” or “Since major contracts have started finishing, we don’t know what to do with our current staff”? If a lot - you’re not alone. Looking out for the next contract opportunity is the norm for many of our member companies - but could we improve this outlook with better marketing or networking? Absolutely!

Subscribe to

NZ Manufacturer And be in the draw to win a copy of

The Business of Portfolio Management By Iain Fraser, recognised as an expert in modern portfolio, program, and project management practices globally.

In fact most jobs are generated by word of mouth and those random phone calls which you weren’t expecting - but when those dry up, you’re still likely to be dictated by the market than call the shots yourself any way. What we need to start asking ourselves is whether we can jump ahead of the queue, and drawing inspiration from those who’ve paved the way is a good start take the classic car Ford Mustang for example! A faster horse - Ford’s disruptive journey

The second is augmentation, such as IBM’s Watson used to shoulder doctors’ diagnostics, and the third is the creation of more jobs, which is the hardest to imagine. Since there are many jobs that exist today that did not exist a decade ago, it is quite likely this scenario will happen as well. Some of these jobs include app developer, driverless car engineer, and big data analyst. Not only are these jobs being created due to the increase of technological development but also the pay in these jobs is high. While not as high paying, other jobs created by technological change include social media manager, drone operator, and Uber driver (and the latter two can be automated over time).

Henry Ford is famously quoted for saying ‘If I had asked people what they wanted, they would have said a faster horse’ - a statement reflective of an era where everybody had horses but very few cars, and his underlining belief that his company knew best being the ‘car people’. Since then, this phrase has been adopted in arguments and debates around the world when it comes to aspirations for a disruptive shift in thinking.

continued on Page 6

FOOD GRADE COMPLIANCE IS EASY WITH CHEMZ

Contact publisher@xtra.co.nz to find out more or Phone 06 870 9029

CONTENTS DEPARTMENTS 4 5 6

EDITORIAL BUSINESS NEWS MANUFACTURING TECHNOLOGY

Craig Carlyle

First algorithm…the early days. How Kiwi technology helped Team NZ bring the America’s Cup home. Forget driverless cars: Sailor less ships are about to make waves.

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

PROJECT MANAGEMENT Speed up, reduce waste and get ahead! The rise of public participation as critical to project success.

INDUSTRY 4.0

ANALYSIS

HEALTH AND SAFETY

RECYCLING

SMART MANUFACTURING

ADVISORS

Catherine Beard

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

Japan looks towards society 4.0. The dawn of the new industrial era with the Smart Factory. Augmented reality is already changing the way we work.

10 ways online software will stream your inductions.

Dieter Adam

Chief Executive, New Zealand Manufacturers and Exporters Association has a Ph.D. in plant biotechnology, consulting and senior management roles in R&D, innovation and international business development.

Higher levy would cut waste and create work. Companies embracing, and finding value in, the circular economy. SKF and world-class digital technology. America’s Cup success for small NZ company.

DEVELOPMENTS

Lewis Woodward

Prime Minister talks manufacturing to the NZMEA in Auckland.

NEW PRODUCTS

FOOD MANUFACTURING

SUPPLY CHAIN

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.

Olympus flaw detector for challenging inspections. Cribbing and jacking blocks can take the heavy loads.

World class New Zealander award for FAR’s Phil Rolston. Waterforce improves agricultural efficiency and sustainability.

Dr Wolfgang Scholz

Upcoming changes to CPIM, Certified in Production and Inventory Management.

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

DEVELOPMENTS

Napier Port orders more lift trucks from Konecranes. Bison container scales in demand at America’s Cup.

THE CIRCULAR ECONOMY Industry 4.0 and the Circular Economy.

BUSINESS NEWS Books worth a read. Sweet success.

REAR VIEW Letting our capes fly: Why engineers are awesome.

PUBLISHER

Media Hawke’s Bay Ltd,1/121 Russell Street North, Hastings, New Zealand 4122.

MANAGING EDITOR

Supporting the regions It’s an election year. We know this because various types of carrot are being placed in front of us.

Doug Green T: +64 6 870 9029 E: publisher@xtra.co.nz

CONTRIBUTORS

Dieter Adam, Holly Green, Iain Fraser, Michelle Doolan, Vishnu Rayapeddi NZMEA, www.mscnewswire.co.nz

ADVERTISING

Doug Green T: + 64 6 870 9029 E: publisher@xtra.co.nz

DESIGN & PRODUCTION Kim Alves, KA Design T: + 64 6 870 8133 E: kim.alves@xtra.co.nz

WEB MASTER

Bruce Metelerkamp E: bruce@hha.co.nz

PUBLISHING SERVICES On-Line Publisher Media Hawke’s Bay Ltd

DIGITAL SUBSCRIPTIONS E: info@nzmanufacturer.co.nz Free of Charge.

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

Vol.8 No.6 July 2017 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.

Affiliates

Ranging from greater welfare support, more houses, improving the quality of water to…financial support for the regions. Especially on the East Coast where the levels of youth unemployment are rampant. Seeing it’s the regions that bring in the maximum revenues for government coffers this is welcome news indeed. But why does it have to take an election to put forward this plan? The problem exists in the region perpetually, so last year and the year before the financial support would have been very welcome! In bolstering the regions, we can look towards more people in employment, and hopefully the ability to commit more money to R & D. It is the regions where New Zealand’s ‘pot of gold’ lives. Primarily in land-based industries which are a far greater contributor to the economy than almost anything else apart from tourism and the construction industries which have on-going work for a while, especially in Auckland. Australia – widely known as ‘The Lucky Country’ – has done very well from the mining industry. Over recent years exports just

about looked after themselves; which is good because Australians choose a lifestyle first and have been called too casual in their dedication to growth. After all, they need time for the AFL and test cricket! Our luck has not been different. It is the world’s continual need for agricultural and horticultural products of a high quality which we are renowned for. Markets that won’t fade out and offer New Zealand success for years to come. Because this is regional business it makes sense that investment in the regions can assist with the manufacturing processes of food manufacturers. By making products and offering services by newly trained staff who are beneficiaries of the push to provide more capital to regional economies. This, of course, depends on the party pushing this policy to be elected. But now that the ball has started to role any elected party can activate the same vision.

Success Through Innovation

EDITORIAL

Doug Green

ASIA

MANUFACTURING NEWS

NZ Manufacturer July 2017

www.nzmanufacturer.co.nz

Don’t accept your dog’s admiration as conclusive evidence that you are wonderful. - Ann Landers

Engineers welcome new framework for earthquake-prone buildings Engineers say new legislation marks a step forward in improving New Zealand’s building stock. Structural Engineering Society (SESOC) spokesperson Paul Campbell says 1 July was a positive day for engineers and for Councils. “It’s about having a better framework and tools for assessing buildings, which will help improve our building stock and increase our seismic resilience. It also means a more consistent approach to the management of earthquake-prone buildings. “The new legislation will encourage discussion between owners and engineers on how owners can proactively manage and improve buildings.” New Zealand Society of Earthquake Engineering (NZSEE) President Peter Smith says the new engineering guidelines create a more systematic

approach to seismic assessment. “They provide clearer definitions and more detailed guidance on ratings, which will make assessments more consistent. IPENZ Chief Executive Susan Freeman-Greene says building owners looking for an engineer to carry out a seismic assessment should make sure the engineer has received training on the new guidelines. “Building owners should use Chartered Professional Engineers when commissioning seismic assessments.” “We recommend that building owners also ask engineers about their experience of that specific type of building and whether they are members of SESOC, NZSEE or NZGS.”

BUSINESS NEWS All political parties should be supporting

international trade ExportNZ has released a report analysing the benefits to all New Zealanders from freely traded exports and imports. The Benefits of Trade shows that New Zealand’s export sector directly and indirectly accounts for nearly three quarters of a million jobs, and that exports bring in 43 percent of New Zealand’s GDP. “This is a massive chunk of our economy. Without exports we would literally be a third world economy,” said ExportNZ Executive Director Catherine Beard. “New Zealand exporters manufacturers, primary producers and technology and services exporters earn the foreign exchange that pays for all the good things we enjoy. Without a vibrant export sector, we would not be able to afford the infrastructure, health, education and welfare services that are the mark of a first world nation. “We have a brilliant export sector

keeping our economy afloat, and we should all be supporting it.” Catherine Beard said with the approach of the 2017 Election, it was important to hear from all political parties on how they would support trade and free trade agreements with other nations. “It’s time for all political parties that want a higher standard of living for Kiwis to get in behind New Zealand being a participant in high quality free trade agreements wherever in the world we can get them. Catherine Beard says in a world of increasing protectionism it is important for all political parties to be united behind an ambitious free trade agenda, because the benefits to New Zealand are overwhelmingly positive. “The data indicates that in a world where free trade was the norm, New Zealand’s GDP would be $18 billion higher, with an additional 62,000 jobs.”

Find a great home for your business EAST TAMAKI A great place to do business

getba.org.nz www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

MANUFACTURING TECHNOLOGY First algorithm... the early days

Ada King-Noel, Countess of Lovelace (10 December 1815 – 27 November 1852) was an English mathematician and writer, chiefly known for her work on Charles Babbage’s proposed mechanical general-purpose computer, the Analytical Engine. She was the first to recognise that the machine had applications beyond pure calculation, and created the first algorithm intended to be carried out by such a machine. As a result, she is often regarded as the first to recognise the full potential of a “computing machine” and the first computer programmer.[1][2][3] Ada Lovelace was a child of the poet Lord Byron,

Alibre Design is back! Professional and Expert versions.

Upgrade to new Expert version for all exisng users on maintenance.

Proving that wishes do come true, the former Alibre Inc., management team have taken back ownership of their soware from 3D Systems and produced a new version of Alibre Design. We’re back on track looking at a very bright and posive future for the soware. New soware available late June. Expert version: $4020.00 + GST and Professional version: $2186.00 + GST Prices include First Year Annual Maintenance. Orders being taken now.

All users of Geomagic Design with current Annual Maintenance will automatically receive a copy of the new Alibre Design software. Anyone with an old Alibre or Geomagic license will be able to renew their maintenance without penalty and receive the new software. Best value for money Design soware NZ supplier and training provider for Alibre Design

NZ Manufacturer July 2017

www.nzmanufacturer.co.nz

The G20 is not Take Your Daughter to Work Day. - Gawker founder Elizabeth Spiers on Ivanka Trump filling in for her father at a G20 meeting.

continued from page 1

The spirit of

disruptive innovation Surprisingly this isn’t commonly what he was best known for. Ford’s real contribution is attributed to developing the art of the assembly line.

his company.

In 50 years more than 9 million Mustangs have been sold around the world, transforming him into one of the richest and best-known business men crediting him with the concept of “Fordism” - mass production of inexpensive goods coupled with high wages for workers.

What does this mean for you?

So far no-one in New Zealand is manufacturing low temperature energy conversion plants despite our capability to make them. “Designing a good looking car is as easy as pie. Designing a car that the company can afford, manufacturing guys can assemble and engineers can engineer, that’s damn difficult.” Ford Engineer His global vision with consumerism as the key to peace, and his intense commitment to systematically lowering costs resulted in many technical and business innovations – but didn’t come without its fair share of challenges. The Edsel Ford model was an expensive and embarrassing example of the wrong car at the wrong time with the wrong design. “This is why people get nervous about innovating. People put their careers on the line to get this going. It was a high –risk game. The Edsel designers were known as the E-guys. Henry Ford II did not want to have anything to do with them.’’ Ford Staff Member Ford analysis and its implications Ford responded to an unknown market need disruptively paving the way for the modern automobile industry by acknowledging that customers don’t always know what they want. His downfall being he failed to listen to his customers or test his vision against reality halting the process of innovation for

So, while not a perfect run, what we can take away from Ford’s story is that having the confidence to buck the norm can be a game changer. At HERA, we believe our members don’t have to be a Henry Ford to innovate, nor aspire to his scale of disruption – but we do think diversifying your market and productising your service offerings are easily addressed with your capabilities. Developing your innovation muscle to consistently temper innovative strides against market behaviour is all it takes. Next time there is a question around staff retention or contracts drying up, let’s think how can we jump this queue by applying disruptive thinking and exercise our disruptive spirit and innovation muscle. Such efforts ultimately transform reputations and brands over time to reflect what we do So much so that we’re putting our efforts where our mouth is exploring low temperature clean energy research that demands a different approach for our energy sector. So far no-one in New Zealand is manufacturing low temperature energy conversion plants despite our capability to make them more affordable for energy end-users and an increasing demand for alternative and reliable energy sources globally. If there was ever a chance to disrupt the market it is now, which is why we’re submitting a research partnerships proposal to the government this August to seek funding for transformative industry initiatives with clean energy technologies a major research programme within it. We know heavy engineering is classed a traditional industry – but we also know that many members are innovating and changing their paradigm of operation and market impact to remain competitive. It goes to show - no matter how big or small the initiative or effort, having a disruptive mind set and constantly asking what is the ‘next thing’ is our assurance for progress. -HERA

Excellence is not a skill, it’s an attitude. - Ralph Marston

MANUFACTURING TECHNOLOGY

IoT influencer visits Dunedin About 130 people gathered at Otago Polytechnic on 10 July to hear from Alexandra Deschamps-Sonsino, a designer and Internet of Things influencer based in London.

areas with no GPS coverage could carry devices enabled with what3words to communicate their location, specific to a 3m x 3m square. Other sensors can detect pesticide spray.

While in Dunedin Alex also met with the Dunedin City Council and the Signal ICT Graduate School, who co-sponsored her visit to Dunedin with Otago Polytechnic.

The accumulation of data is also valuable, for example air quality sensors in a suburb and across a city.

Information Technology lecturer Thomas Laurenson set the scene by briefly introducing the Internet of Things - objects embedded with small computers that can gather and transmit data. Thomas explained the research work staff and students are doing to set up a free long range low power wifi network in Dunedin. Alex Deschamps-Sonsino then provided the audience with many examples of connected things, demonstrating how the Internet of Things can deliver value for our society, by helping us to understand the world around us better and to control it more. For example people could sign up to receive a flood alert when water level reaches a sensor under their local bridge. Trampers or farmers in remote

When new behaviours are enabled, that raises issues that need to be addressed. For example how much control do we allow others to have over us. Sports Direct in the United Kingdom is under scrutiny for requiring employees to wear devices that enable their activeness to be tracked, as a measure of productivity. Another issue is the security of the data gathered. Alex is currently leading work on development of an IOT certification mark, a framework of standards which connected objects should meet. Alex also sees that the Internet of Things provides an opportunity to build local community. The technology is available globally, the learning is available globally, so we are not dependent on the solutions which global corporations might offer,

but can produce our own home-grown solutions to local issues. The Internet of Things has important implications for local manufacturers. The first is to consider what new products might now have a market, and what sensors could be embedded in existing products to add value. What data could you provide that would be useful for your customers? Alex says people are willing to pay more for something different. Secondly, increasing automation will mean some traditional jobs will no longer require human employees – Alex mentioned driving for example, and contract drafting. What are the implications for the workforce? What else could those employees be doing to add value to your business? How do we reskill employees for new work? Finally, when asked to predict the future of the Internet of Things Alex told the audience that she expects to see a much more connected industrial landscape. Factories will be internally

www.nzmanufacturer.co.nz

connected, producing data that will enable informed decisions to be made to improve productivity. There is potential to use data not just to detect and control anomalies but for optimisation and prediction to get the most out of machinery. Alex’s visit to Dunedin coincided with the release of the IoT Alliance’s report. The report identifies some of the benefits of the Internet of Things to the New Zealand economy, including opportunities for the manufacturing sector. IoT Alliance calls on the New Zealand Government to become a catalyst to encourage business to invest in Internet of Things technology.

NZ Manufacturer July 2017

MANUFACTURING TECHNOLOGY

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

How Kiwi tech helped Team NZ bring

the America’s Cup home Emirates Team New Zealand’s (ETNZ) win of the America’s Cup is a tremendous sporting victory, but it is also a victory for brand New Zealand, particularly when it comes to shifting international perception of who we are as a country. While the common associations with beautiful scenery and amazing food are positive, we know that as a country, we have so much more to offer the world.

engineered the cycling wheels for the NZ Olympic Track Cycling team at Rio 2016.

The America’s Cup has helped position us as a smart and innovative nation, filled with entrepreneurs and world-leading tech companies. That’s’ because off the back of ETNZ’s incredible win, there’s an extraordinary story to tell about some of the New Zealand companies whose technology has played a role in helping return the Auld Mug to our shores.

C-Tech is a premium marine composites manufacturer in Auckland with a passion for sailing, a proud yachting history and extensive experience across a broad range of applications.

Better yet, the technology is also being used to solve numerous non-marine problems around the world. Here’s a taster.

Southern Stars The company specialises in the design and construction of carbon fibre masts, booms and rigging. America’s Cup play: Southern Spars are responsible for building ETNZ’s hull and wing mast. It took 18 months or 200,000 hours for the 10-man team to build the boat. Did you know? Southern Spars reinvented the wheel when they

NZ Manufacturer July 2017

C-Tech

America’s Cup play: C-Tech built ETNZ’s foils and supplied most of the other America’s Cup teams with their prods and a number of compression struts. Did you know? C-Tech is also responsible for building composite tubes for New Zealand’s other darling, Rocketlab.

Tait Communications Tait Communications is a global leader in designing, delivering and managing critical communications solutions. America’s Cup play: Tait Communications provided ETNZ with 22 of the latest Tait TP9400 digital portable radios, providing the sailors and support crew with highly secure, crystal-clear communications on the water. The radios feature sophisticated encryption to prevent the interception of sensitive communications — vital for

www.nzmanufacturer.co.nz

keeping ETNZ’s team secrets safe from competitors.

competitors, including Oracle during this America’s Cup.

Did you know? The unique encryption functionality used by ETNZ is also used by police forces around the globe to prevent the interception of sensitive communications.

Did you know? Beyond sailing, Virtual Eye also delivers 3D animation for Golf, Sailing, Cricket, Airsports and Motorsport to name a few.

Virtual Eye

Jackson Electrical

Virtual Eye is a world leader in provision of real time 3D sports graphics for television, Internet and mobile devices.

Jackson Electrical is a company specialising in composite engineering and precision machining for the marine industry – and beyond.

America’s Cup play: For the America’s Cup, Virtual Eye provided broadcast graphics and tracking, mobile apps, sailing simulators, VR multiplayer environments and interactive displays. Virtual Eye 3D graphics makes it possible to explain sailing to the audience in a new way.

America’s Cup play: The relationship between Jackson Industries and ETNZ goes back over 20 years, working together to supply large format CNC machining and Power distribution systems. Jackson supplied a CNC mould builder for ETNZ foils for the 2017 America’s Cup.

The technology can show an entire racecourse, including marks, the direction a boat is travelling in, how fast a boat is going, and the distance between boats and can even estimate how long it would take one boat to catch up with another.

Part of ETNZ’s engineering and construction team moved onto Jackson’s Onehunga site in Auckland nearly two years ago. Over that period the combined teams have produced dozens of parts including dagger boards, rudders, elevators and other AC50 components.

Originally designed for television broadcasters, the technology has since been adopted by syndicates wanting to uncover the secrets of their

Did you know? Jackson’s CNC machinery is also used for motorway mouldings. .

Continuous improvement is better than delayed perfection. - Mark Twain

PredictWind PredictWind is a unique weather forecasting product, bringing the highest quality tools and forecasts to sailors all around the world. America’s Cup play: PredictWind’s weather predicting software was used in the 2017 America’s Cup and gives any local sailor around the world access to the same information as winning Americas Cup teams.

MANUFACTURING TECHNOLOGY

was also involved in the creation of the Martin Jetpack (the personal flying machine), the foldable Yike Bike and the design, development and manufacture of the bike athlete Hayden Roulston rode to silver at the 2008 Beijing Olympics . Bloomfield also designed the graphite frame bike Sarah Ulmer rode in the 2004 Athens Olympics..

Core Builders Composites

Did you know? PredictWind’s technology is also being used in Cruising, Fishing, Kitesurfing, Powerboats and Windsurfing.

Core Builders Composites utilises state-of-the-art equipment for composite tooling and manufacturing of composite parts.

Vesper Marine

America’s Cup play: Core Builders Composites is the builder of Oracles foils, moulds, and components.

Vesper Marine manufactures award-winning innovative marine safety products that utilise the Automatic Identification System (AIS). Unlike ordinary AIS, which only sends and receives data, smartAIS from Vesper Marine is an active AIS system with smart alarm logic that proactively alerts you when you have potential collision situations. It also plots your anchor position and alerts you if your anchor drags, it continuously watches for a man overboard and triggers an alarm for quick action. America’s Cup play: The America’s Cup Event Authority used Vesper Marine’s Guardian AIS system to provide a navigation perimeter of the racecourse that was updated in real time as course changes were made. Vesper Marine’s technology has been implemented to address safety concerns for the large number of on-the-water spectators. Did you know? Vesper Marine’s Guardian system was employed during the search for the missing Malaysia Airlines flight 370 in the Indian Ocean to create a safety zone around the search vessels. The technology is also used by telecommunications and power companies to inform vessels of the location of underground cables in order to prevent anchor strikes.

Dynamic Composites Christchurch company Dynamic Composites designs, develops and manufactures innovative high performance composite products. America’s Cup play: Milton Bloomfield, the Owner and Technical Director of Dynamic Composites, designed the carbon fibre steering wheel for the ETNZ. Five were made in total for the America’s Cup campaign Did you know? Dynamic Composites

Did you know? The company has been active in the development of a composite design for SkyPath, a walking-cycling clip onto the Auckland Harbour Bridge. They also assisted NZ Institute of Architects with their 2016 Venice Biennale Exhibition, named Future Islands. The ‘islands’ – shells of fibreglass, carbon fibre or infused hemp – were made by Core Builders Composites.

Igtimi - Yachtbot Igmiti’s is an electronics and communications technology development house in Dunedin. The company’s flagship product, called Igmiti, is a GPS tracking system that provides live, on-line performance analytics and visualisation for sailors, coaches, clubs and events. America’s Cup play: Yachtbots tracking technology was used by the Americas Cup organising authority in Bermuda to monitor the location of 40+ media and mark-setting boats. The system allowed race organisers to build a “virtual stadium” on the water, and establish a ‘seating plan’ for nearly 1,000 Superyachts, VIPs and the public.

Forget driverless cars:

sailorless ships are about to make waves Norwegian company Yara will launch the world’s first electric cargo ship next year. Initially manned, the vessel will move to remote control in 2019, before becoming totally autonomous in 2020. Named Yara Birkeland, the vessel will sail between Yara’s main factory facility in Norway to some of the country’s bigger ports, carrying cargo which is currently transported by road. It’s estimated that the battery-powered ship will remove the need for 40,000 truck journeys a year. Making ‘drone’ ships a reality Although advances in driverless cars are getting more media attention, major advances have already been made in bringing artificial intelligence to the shipping and freight industries. Rolls Royce is also working on making autonomous ships a reality by the end of the decade, in conjunction with ship builders and researchers in Finland. Meanwhile, research body MUNIN - or Maritime Unmanned Navigation through Intelligence in Networks - has been part funded by the European Commission to develop the technology needed to make robotic ships. Back on land, Singapore earlier this year signed an agreement with trucking companies Scania and Toyota Tsusho to design, develop and build self-driving freight lorries to haul containers from one port to another. The idea would see one truck with a driver leading a convoy

of driverless trucks; it’s being billed as a way to reduce congestion and boost productivity in the country’s already efficient ports.

Major advances have already been made in bringing artificial intelligence to the shipping and freight industries. In 2016, a fleet of trucks from a host of leading manufacturers including Volvo and Daf drove their freight across Europe largely without drivers as part of a mission under the Dutch presidency of the EU to prove the potential of AI in the haulage industry. In a report into the driverless car revolution, the World Economic Forum estimated that $2 billion worth of value would shift from traditional cars to self-driving ones, and these would make up 5% of vehicle sales by 2025.

Salthouse Boatbuilders Salthouse Boatbuilders build yachts and powerboats for the international market. When John Salthouse formed Salthouse Boatbuilders in 1956, the Auckland Harbour Bridge was still three years from opening and materials like carbon fibre and nomex were more than 30 years away from being used in the construction of boats. How far we’ve come! America’s Cup play: Salthouse Boatbuilders were tasked with the critical job of building the ETNZ rescue boats for the 2017 America’s Cup.

Sea change ... unmanned electric cargo ships could be with us in three years.

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

PROJECT MANAGEMENT

Imagine a robot capable of treating Ebola patients or cleaning up nuclear waste. - Dileep George, artificial intelligence and neuroscience researcher

Speed up,

reduce waste and get ahead! The project management profession is booming globally as well as here in New Zealand. The construction activity in Christchurch and in Auckland is assisting this a great deal. Project management though is used across most sectors albeit some more than others and certainly some better than others. However, that’s not to say that all is well – far from it in fact! A recent survey by KPMG found that up 70% of projects in NZ are in some form of trouble! Another survey, this time by PwC, found that the NZ construction sector lacked innovation and suffered from poor productivity. These are troubling facts and I’m sure amount to a huge waste of funds, energy and perhaps even direction. Despite the rhetoric from some quarters, globalization is here to stay which creates continued concern and issues for all leaders. Those issues are compounded further by pressures from the market (mantras), and the continuous acceleration of disruptors, thus creating a need to innovate faster. The hunt for value, added and new, is on! We certainly live, work and even play in a world that is often termed VUCA (Volatile, Uncertain, Complex and Ambiguous). The future is likely to be more of the same – much more! I’m sure that most business leaders will realize that to do nothing is to stall and potentially disappear. But what to do?

strategic goals supported by specific business objectives, 2. The need to protect inherent value, add value where possible and economical, and create new value, and 3. The use of portfolio, programme of work and project management approaches to identify, plan, execute, and sustain value towards strategic goal achievement. These lead to the creating of better business portfolios that are based around value rather than, for example, product or geography which have typically been the case. The three elements will also provide a platform for becoming business agile – speeding up, reducing waste and getting ahead.

To me it’s about three interlinked elements:

The project management profession has matured a great deal in the last twenty years. Today project management and its cousins, programme of work management and portfolio management are ideal approaches to counter the VUCA reality and allow organisations adapt to challenges from the local as well as wider markets.

1. A shift away from the production of strategic plans to value-based discussion around the shaping of

Professionals within the profession claim that portfolio management in particular might well be the saving

grace for stressed business leaders looking to counter the many forms of VUCA disruption that are prevalent today. A caution though as this is guaranteed to add to the wastage and mis-direction unless significant organisational change is implemented. Striving for short-term agility but maintaining a long-term resilience viewpoint will lead to a future that’s more sustainable for the organisation. Portfolio management, especially that which is driven via a value management framework, will allow any organisation to identify, plan, execute and deliver value faster than before, and with due consideration to risk and operational constraints and/or hiccups. However, a process heavy approach to portfolio management is doomed to fail as it will choke the organisation and restrict its flexibility and ability to rapidly adapt. What’s required is a culture that’s based on the philosophy of lean which allows the organisation to speed up and at the same time reduce waste. Innovative thinking is evaluated from a value perspective and, if satisfying various parameters, is prioritised, planned, delivered, and its value

captured by the use of portfolio, programme of work, or project management depending on the scale of each initiative and the organisational capability and capability. It’s the blending of opex and capex together. In other words, doing the right things and then doing them right, a variation on Peter Drucker famous quote. About the Author Iain is globally recognised as an expert in modern portfolio, program, and project management practices. He has worked around the world in the banking/finance, defence, engineering, government, oil & gas, power, and telecommunications sectors. Recently retired as Founder and CEO of Project Plus Ltd he is now a published author, business consultant and international speaker. His new business book ‘The Business of Portfolio Management – Boosting Organisational Value’ is available now. Iain’s specialties include: organisational governance; portfolio and program governance; portfolio, program & project consultancy, EPMO/ PMOs; change management, value management and benefits realisation management.

The Business of Portfolio Management By Iain Fraser The Project Management Institute Today there is a gap between organisational strategy and day-to-day management activities. To capitalise on new opportunities, or “getting ahead” rather than just “staying in business,” most workplaces need a radical transformation. This transformation can begin with how organisations devise and manage their portfolios. Long underutilised as a mechanism to provide value, portfolio management is now being recognised as an effective approach to bridging these critical business elements. The Business of Portfolio Management offers keys to adopting a new

NZ Manufacturer July 2017

www.nzmanufacturer.co.nz

approach to portfolio management that boosts organisational value. A veteran in the field, author Iain Fraser proposes a solution that lies in using the value management framework to link organisational strategy to portfolio content and to delivery mechanisms. In this expansive guide, case study examples illuminate in-depth discussions explaining the value management framework, implementation and delivery techniques, portfolio leadership qualities, key roles and professional development, and change management.

Also included is an overview of organisational maturity models to evaluate project, program, and portfolio performance as well as tools and techniques to implement, execute, and measure their benefits and value contribution. To capture success, every organisation should ultimately thrive in a culture that embraces its purpose, people, and performance (or the “3Ps to success”), so that aligned activity and empowered people can achieve the confidence to deploy true portfolio management, which is how The Business of Portfolio Management does business that adds value to any organisation.

PROJECT MANAGEMENT

We cannot become what we want to be by remaining what we are. - Max DePree

The rise of public participation as critical to project success The International Association for Public Participation (IAP2), an organisation of practitioners from across the globe responsible for promoting and improving the practice of public participation on issues that affect the public interest, has appointed as its next international chair, an Australian executive Kylie Cochrane. Currently Global Lead, Communication & Stakeholder Engagement, for engineering and infrastructure advisors Aurecon, Cochrane believes Australia’s high level of public investment in infrastructure compared to other Organisation for Economic Co-operation and Development (OECD) countries, as well as the increasing interest by government and private stakeholders in the role of ‘collective design’ to deliver transport and social infrastructure, is driving this international recognition.

Advocating for public participation throughout the world One of the IAP2’s key activities is advocating for public participation throughout the world. “Stakeholder engagement is traditionally underappreciated as a powerful tool for fast-tracking projects and for cultivating community acceptance. Developing professionals who can be more effective advocates for better public participation across the globe is something that we are very focused on,” she said. “Australia is seen as a trail blazer and one of the first Western countries to understand the value of community engagement in designing public infrastructure, as well as helping shape its development, delivery and, following completion, its ongoing maintenance.” Across the world, Cochrane is seeing

many smart project owners and governments, making use of digital channels and mobile apps to more effectively connect, engage and partner with community and other stakeholders, supplementing the traditional consultation process.

she oversees a global team providing communication and stakeholder engagement for both public and private sector clients who are planning and delivering a range of civil and social infrastructure within regions, cities and communities.

The potentially game-changing results are often referred to as ‘collective design’ and are very much the product of a more activist and community-focused electorate seeking greater control over their local community and its facilities and services.

“I particularly look forward to sharing my ideas about collective design and using digital tools for stakeholder engagement,” says Cochrane.

Collectively designing a city’s future Cochrane believes this collective approach means we can design infrastructure that lives within communities, rather than infrastructure that communities have to put up with. “Nobody wants infrastructure that imposes on their neighbourhood or quality of life, and few people would sit back quietly if a monstrosity was being built next to them. “People need to be asked what they think and be given the opportunity to voice their opinion. Major infrastructure projects are only truly successful when the community is involved in projects and when they have the opportunity to raise concerns and be heard,” says Cochrane. Cochrane’s role as the International Chair for IAP2 is strongly aligned with her current role at Aurecon, where

“Instead of a one-way communication plan that distributes carefully tailored information, digital tools and the increasing popularity of swipe-engagement now need to be considered as part of these plans. People are more connected than ever before and they want to be able to connect with their communities in a real way. Considering how people access and share information in the digital age is key to earning and maintaining a social licence to operate,” says Cochrane.

Clicktivism and the rapid evolution of engagement

Technology can cut costs and boost engagement

The way that people continue to seek, use and share information continues to change at a rapid pace. The emergence of desktop protestors, internet activism and clicktivism makes it critical that governments and organisations have a more cohesive, coordinated and communicative approach to community and stakeholder engagement on key infrastructure projects.

Apart from reaching more people and ensuring greater engagement by using digital tools, technology also enables governments and organisations to drastically reduce costs and gather opinions in a fraction of the time. “Across the globe we are seeing innovative solutions and partnerships such as the WikiCity model for Amsterdam city – an open planning concept that took its cue from Wikipedia to offer a platform for every individual to envision and shape their city.

“Anyone with a smartphone can be an activist. An online petition can be created in a few minutes and groups can be created to fight new infrastructure developments before a project has even submitted their initial proposals. New and non-traditional communication channels need to be considered if governments want to effectively communicate and engage with communities and other stakeholders,” says Cochrane. From one-way communication inclusive participation

“I am excited about my new role at the IAP2 and I look forward to sharing these innovative new ideas and developments within our industry,” concludes Cochrane.

2017 New Zealand Manufacturer Excellence in Manufacturing For an Entry Form and further information contact: Doug Green, Publisher, NZ Manufacturer P: 0064 6 870 9029 E: publisher@xtra.co.nz

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

INDUSTRY 4.0 Japan looks towards Society Declining birth rate, aging population, natural disasters, pollution: Do these sound like issues the IT industry can deal with? Japanese businesses say yes, and a number of them visited the Cebit trade show in Hanover, Germany, to explain why. Industry 4.0 -- the building of “smart factories” in which machines monitor one another and make decentralised decisions about production and maintenance -- has been a theme of recent Cebit shows. Now, under the banner Society 5.0, the show’s partner country for 2017, Japan, wants to take the transformation beyond industry, making “smart society” one of the show’s talking points. Behind the drive are some very real societal problems. Japan’s population is falling, but the average age of its citizens is increasing. A consequence of a low birth rate and extreme longevity, this is leading to an imbalance between young, active workers and those needing care.

less competition and more cooperation with foreign businesses in some fields. And, of course, it sees a new role in transforming society for many of the technologies that are already changing industry, with the internet of things, cybersecurity, artificial intelligence and robotics among the areas sure to play a part. Japan’s use of robotics in industry is already second only to that of South Korea, with 211 robots per 10,000 workers. Germany is in third place with 161 per 10,000, putting those countries well on the way to Industry 4.0. Show visitors heard more about Japanese industrialists’ vision for Society 5.0 in the Cebit Japan Summit, webcast.

Experience is not what happens to you. It is what you do with what happens to you. - Aldous Huxley

5.0 internet and telecommunications company Softbank, was originally developed in France, but other Japanese companies at Cebit demonstrated technologies made in Japan. Japan has a long-standing reputation for microelectronics, but not all the innovations on show at Cebit were about miniaturisation. Komatsu brought its latest intelligent excavator. While still leaving its human operator to direct the broad sweeps of the bucket, the PC210LCi-11 compares its movements with a digital version of the construction project to prevent the operator from digging outside of the defined area. That can mean less work in staking out

Companies like Tesla and Toshiba want to make such big batteries commonplace, and Toshiba is also thinking about how to get the most value out of every charge. It showed the first fruits of a research project into distributed energy resource aggregation for virtual power plants, which attempts to balance local energy demand and energy supply from renewable sources such as photovoltaics to decide when to draw on its 10kWh fixed storage batteries. By using a distributed array of such batteries to smooth out dips in generation and peaks in demand, it hopes to reduce the need for centralised generating capacity, and plans to bring the service to market in

But with the country in a seismically active area, and having an ageing industrial infrastructure, this shrinking workforce is likely to deal with natural disasters and incidents of pollution. The Japan Business Federation (Keidanren) has set out a plan for addressing the transformation. It wants to open up Japanese workplaces to foreign workers and to women, two groups notoriously underrepresented in Japanese industry. This alone could go some way to alleviating the country’s demographic problems. Outside the workplace, it is looking for ways in which technology can help all citizens to participate actively in society, even the elderly.

Pepper the humanoid robot participated in discussions about designing customer experiences with humanoid robots, and machine recognition of human emotions.

To allow companies to build technology ecosystems together, Keidanren wants

Pepper, now owned by Japanese

the construction site, and in surveying the finished excavation. The whole thing is monitored via a touch-screen display. Showgoers experienced what it’s like to operate one in a simulator on Komatsu’s stand. If you carry a smartphone, you probably spent a significant part of the day wondering when best to recharge it -- and that’s for a battery containing a few watt-hours of energy, at best. When your battery is a thousand times as big, intended to store up renewable energy and power your home or workplace, then the decision when to charge and discharge can be thousands of times more complicated.

NZ Manufacturer July 2017

www.nzmanufacturer.co.nz

October. Knowing what’s going on across a power network helps Toshiba reduce power plant costs and improve reliability -- and Fujitsu hopes to do the same for industrial plant. Its Intelligent Dashboard gives an overview of what’s going on in a factory, highlighting problems and offering guidance on preventive maintenance. The same company also showed Ubiquitousware, which employs some of the same technologies found in fitness wearables to monitor location, body position and vital signs, learning the wearer’s movements so as to identify anomalies such as falls, drowsiness or ill health. Fujitsu sees applications in industry, transport (driver safety) or in health care, where the devices could be worn by staff and patients alike.

INDUSTRY 4.0

Lean isn’t stab in the dark. It’s stab in the dark AND then listen carefully for screaming. - Alister Croll, Solve for Interesting Lean Startup.

The dawn of the new industrial era with the Smart Factory Over the past few decades, the manufacturing industry has undergone numerous major upheavals. Right now, we are witnessing the dawning of the next era with Industry 4.0, boosted in Asia by China’s recently announced China 2020 vision, in which they outlined plans to adopt new technologies and industries, marking a shift away from traditional manufacturing. According to Eaton research on the machinery OEM segment, the global market for industrial automation is expected to grow at 5.5% CAGR to reach US$210 billion by 2017. This phenomenon is fast gaining traction, and it would be foolish not to carefully observe its development and re-assess existing strategies to fully capitalise on this new phase of manufacturing. The importance of Industry 4.0 The way we do business has transformed. Disruptive business models and technology now have the power to make or break a company. In a way, constant change is now forcing businesses to “disrupt or be disrupted”. Like what the smartphone did to Nokia, and what Uber is doing to the taxi industry, Industry 4.0 can similarly render obsolete the company that doesn’t innovate and keep pace. Industry 4.0 looks set to completely revolutionize the manufacturing industry through digitization and automation. Global consulting firm McKinsey & Company identified four drivers of this revolution: a rise in data volumes and connectivity, the emergence of analytics and business-intelligence capabilities, new forms of human-machine interaction such as touch interfaces, and improvements in transferring digital information to the physical world through technology like 3D printing and information modelling. Big data and analytics can significantly increase productivity and quality in manufacturing, while the digitization of the physical world can drive collaboration and interoperability. Automation not only increases efficiency, but also serves to reduce the risk of human error and eliminate mundane tasks, ultimately driving the up-skilling of the manufacturing workforce. In the past, elements in the industrial value chain such as design, planning and engineering were each implemented separately. In the age of

Industry 4.0, new technology is bringing these elements together to work more seamlessly than ever. Big data in manufacturing The hype behind the Internet of Things (IoT) is massive, and for good reason. IoT gives a digital voice to machines, enabling them to communicate with each other about their position, condition, temperature, etc. By leveraging these systems and optimizing data flow between elements, companies can increase productivity, make operations transparent and minimize risk by making dynamic environments more predictable. Digitising manufacturing processes through IoT technology gives us access to information and data about our operations that we never had. From this data, we can mine meaningful insights about our processes, identify issues such degradation or component wear, and gain greater transparency. By bridging the gaps between our physical world and the digital one, we can engage and interact with our manufacturing operations more seamlessly and intuitively. The data

can be translated to optimize factory processes and eliminate any areas of wastage or inefficiency, ultimately resulting in tangible businesses benefits. Energy efficiency in the Smart Factory For instance, energy efficiency is one of machine owners’ greatest challenges today, given rising energy bills and increasingly stringent regulatory requirements. Solutions that enable our customers to save energy, both in their machines as well as in their manufacturing facilities, will take centre stage. Energy efficiency can be achieved through energy measurement in manufacturing, which can help in identifying areas where energy could be saved. A technology such as Eaton’s Lean Power solution can deliver data in real time from the controller to the actuator/sensor, making all data related to electricity and energy consumption available to the entire machine and individual actuators. This information can be used on plants and machinery to optimise energy consumption, carry out preventative

continued on Page 24

Spring & Wire form manufacturing company where solutions are created for your problems. 09 277 5982 • www.natspring.co.nz www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

ANALYSIS

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

Augmented Reality is already

changing the way we work AR is set to be the next step in the evolution of computing Image: Meta Augmented Reality

More on the agenda

For the past 50 years, computers have been add-ons to our lives, evolving from complex, room-sized machines to simplified, but powerful, pocket-sized assistants embedded in every facet of our lives. Augmented reality (AR) is set to be the next step in the evolution of computing, and will arguably be the most intuitive and collaborative computing experience. In fact, much ink has been spilled on AR’s limitless potential, while countless hours of screen time have been dedicated to imagining how AR can better our lives. Even among our customers, we’ve noticed that both application developers and business decision-makers see AR as a tool for enhancing productivity. However, there’s no need to continue imagining AR’s potential for improving the way we work – AR is already enhancing productivity at the workplace. Here are some of the ways AR is being used today:

Maintenance and Assembly Like most solutions, AR’s entrance into the workplace was conceived out of a challenge a company faced. In 1990, factory workers at Boeing had to rely on painstakingly complex airplane wiring instructions that were displayed on large plywood boards. At each step of the manufacturing process, workers had to manually rewire each board – no easy task given the deadlines, complexities, and inefficiencies.

NZ Manufacturer July 2017

Two Boeing researchers, Tom Caudell and David Mizell, introduced AR and AR headsets to the factory floor (and subsequently coined the term “augmented reality”). Factory floors arguably became the first places where AR was used daily to enhance worker productivity and streamline supply chains. Fast forward to today, companies like General Electric (GE) have increasingly incorporated AR(through both mobile devices and headsets) as part of their factories’ workflows and processes. And it’s no surprise given that numerous studies have shown that the use of 3D instructions, i.e., the kind displayed through AR, can amplify people’s efficiency and ability to focus on tasks.

3D information wasn’t meant for 2D screens While factory workers, technicians, and maintenance workers have used AR for decades, you’ll rarely find AR being used by office workers. After all, why would office workers need to wear headsets that display holographic information? And coupled with the fact that the computers and corresponding software applications office workers have been using seem rather intuitive, it doesn’t really make sense to use AR in the office – or does it? Architects and designers have been

www.nzmanufacturer.co.nz

turning to AR to overcome some of the productivity limitations inherent to working with 3D models and designs in 2D (our brains have evolved to become finely attuned to navigating the 3D world around us). And while powerful CAD and modeling software like SolidWorks and Revit (along with more traditional tools like pencils and paper) continue to help architects and designers, AR architectural applications like Schema – which enable users to quickly concept, prototype, and build 3D structures in the first stage of the architectural design process – are further streamlining architects’ existing workflows.

What does data visualisation look like in AR? It’s one thing to analyse rows of data across several Excel sheets. It’s another thing creating charts and graphs that clearly communicate what the data means. And while it’s considered best practice to refrain from displaying 3D bar charts or lines on a 2D surface such as papers and screens, those 3D bar charts and lines become useful and add an extra layer of informational cues that help people better understand the data they’re interpreting. That’s a consideration that Great Wave, a professional services firm with

extensive experience in developing business and productivity apps, has taken into account as part of their work on data visualisation for AR. They recently built an application, Analytics AR, that takes organizations’ Salesforce sales data and visualises the data in AR so that users can do what they’ve always wanted to do: touch and directly manipulate the data they’re analysing. Not only does Analytics AR make data analysis and visualization more compelling, but it allows people to literally dive and dig into their data.

Futureproofing Your Workforce With the Fourth Industrial Revolution well under way, now is the time to futureproof your workforce and plan out how you can leverage AR to enhance worker productivity and optimize existing workflows and processes. With tech luminaries like Apple and Google developing AR headsets and platforms, AR is undoubtedly shaping to be the next computing platform – so why wait to incorporate it into your workforce?

HEALTH AND SAFETY

If you define the problem correctly, you almost have the solution. – Steve Jobs

10 ways online software will streamline your inductions If you’re the Health and Safety Manager (or someone else involved with the coordination of site inductions), you’ll know inductions can be a drain on time and resources. You’re probably also aware that advances in technology mean that inducting people coming on-site using manuals and printouts is no longer industry best practice. Organisations are now moving inductions online and implementing eLearning which is resulting in a reduction of administration, time and money. You can also save your contractors, service providers, suppliers and anyone visiting your sites unnecessary hassle and time. Here are 10 ways your inductions will be streamlined when you adopt online inductions: 1. You’ll reduce the paperwork The most obvious benefit you’ll see is the lack of paperwork. Of course, you’ll need to store your induction records when you move online. But after the initial set-up, where you upload your old induction documents, inductions will be mostly paper-free. 2. You will free up time Online inductions allow you to invite inductees to take the induction ahead of time, instead of having to set contractors up in the office to run through general Health and Safety inductions. This allows for the contractor to undertake the induction at a time that suits them. You can email specific inductions and have checks in place to ensure your inductions are completed before reaching your sign-in area.

Opinion Manufacturing Profiles Letters to the Editor Politics of Manufacturing Trade Fair World Diary of Events World Market Report Q/A Export News Machine Tools Business Opportunities Commentary As I See It Business News Appointments Around New Zealand Australian Report New to the Market Lean Manufacturing Equipment for Sale Recruitment Environmental Technology Manufacturing Processes

If there are parts of your Health and Safety inductions that you need to demonstrate or refer to in person, you can always have a follow-up online induction waiting for the contractor to do at the sign-in gate. Automating your Health and Safety inductions will also keep your contractors and suppliers happy saving them time and allowing them to focus on the task they are on-site for. 3. There will be less confusion for your team When contractors and visitors are filling out paper-based forms or inductions it often means dealing with illegible handwriting. Give yourself or your admin team a break – set-up your Health and Safety inductions online and let the software weed out any unclear details or answers. 4. You’ll remove unnecessary costs Moving inductions online you’ll be able to reduce the cost of printing on induction related stationery. You will also have the advantage of quickly and easily changing the content of your induction at no additional costs. 5. You’ll reduce stress When a regular contractor isn’t able to make it on-site to undertake repairs in an emergency, you don’t need to stress about finding induction books. With an online induction you can pre-induct secondary contractors ensuring your emergency can be repaired without delay.

6. If something’s wrong, you’ll know Most online induction programs let users set memos for when your contractors need to refresh their inductions, sometimes referred to as ‘triggers’. For example, WhosOnLocation can send you a trigger if someone fails an induction, or has an out-of-date induction and is trying to sign-in to a location. 7. You can share induction records between sites With online inductions, contractors and employees won’t need to complete the same induction again if they visit a new site. For example, you have a plumber servicing one location who’s been fully inducted with your general Health and Safety policies and procedures. The software can see they’ve already completed and passed the general induction on another site, triggering a rule that only the site-specific module is required before entering. 8. Your inductions will be (almost) limitless You can add videos or pop-up quizzes to your online inductions that help you better cater to different learning styles, and learning speeds. You can also easily keep your content up-to-date and relevant to those taking your inductions.

acknowledgement, understanding and acceptance of site hazards, evacuation procedure and rules by every inductee. This will include detailed reports such as date inducted, course taken, result and renewal date. Audits or Health and Safety inspections will become a breeze. With online inductions you can easily share the reports or key induction data with an auditor, or get to the bottom of who was on-site, why, when, and how they were inducted if there are any incidents. 10. You’ll have better control Easily share and manage inductions across multiple locations. You can control who needs to do what inductions when, set rules for who needs to do what inductions, and when those inductions are expired. Don’t forget to ask for feedback from those taking part in your induction as this will ensure that you are able to refine your induction and keep it up to date. Want to know more about online inductions? Visit WhosOnLocation. com.

9. Good records will give you backup You’ll receive and track

NZ MANUFACTURER • August 2017 Issue • Features

www.nzmanufacturer.co.nz

Making your factory robotics smarter Modernising the manufacturing landscape

Disruptive Technologies Women in Engineering Smart Manufacturing Export Success Advertising Booking Deadline – 18 August 2017

Editorial material to be sent to :

Advertising Copy Deadline – 18 August 2017

Doug Green,

Editorial Copy Deadline – 18 August 2017 Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz

P O Box 1109, Hastings 4156, Hawke’s Bay

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

Email: publisher@xtra.co.nz Tel: 06 870 9029 Fax: 06 878 8150

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

RECYCLING

The Fourth Industrial Revolution is still in its nascent state. But with the swift pace of change and disruption to business and society, the time to join in is now.

- Gary Coleman, Global Industry and Senior Client Advisor, Deloitte Consulting.

Higher levy would cut waste and create work Increasing the waste levy will significantly reduce the high volume of waste being sent to landfill and help create jobs, says recycling specialists 3R Group Ltd. The report, “A Wasted Opportunity”, released today by the New Zealand Waste Levy Action Group recommends broadening and raising the levy charged on all waste sent to landfill. Currently $10 per tonne, the levy is well below that of other countries charging a similar levy. Adele Rose, 3R Group Chief Executive, believes New Zealand’s low rates of resource recovery and product stewardship have a direct correlation to the levy. “The low value placed on our waste provides little or no incentive for businesses or consumers to change their behaviour and seek out more positive outcomes for their ‘rubbish’.

Higher disposal costs for waste will increase the push back from consumers onto industry which in turn makes product stewardship more appealing to industry. Mrs Rose believes landfill should be the last option, not the default. She says that too often, highly recyclable products are put in the ‘too hard basket’ and dumped as alternatives simply aren’t available. “Higher disposal costs for waste will increase the push back from consumers onto industry which in turn makes product stewardship more appealing to industry. “Current product stewardship programmes operating in New Zealand can demonstrate significant increases in recovery rates, but they also provide an excellent mechanism to encourage manufacturers to design products that have longer life spans, that can be repaired rather than replaced, and to increase the recyclability of materials. All of which appeals to consumers and is kinder on our planet.

resources otherwise wasted in landfill, creates new jobs and supports local industry and social enterprise. This report states that raising and expanding the levy can deliver $500 million in net benefit to the economy every year and create up to 9,000 new jobs. “Obviously, it’s critical that any change is clearly signalled allowing businesses, industry and government time to plan and adapt, as suggested in the report,” says Rose. “We hope the government will see that this recommendation will bring about multiple benefits that closely align with their own policies of creating jobs, reducing waste to landfill, and supporting the tourism and primary industries who rely on our clean green image.”

About the Report: “A Wasted Opportunity” On Monday 3rd July, a report was released proposing a number of changes to the Waste Disposal Levy. This study sought to determine how the levy could be better structured, and what the impacts might be. The report, completed by Eunomia, was funded by a consortium of public and private sector organisations. It suggests that key changes to the Waste Disposal Levy could, by 2025: · Divert 3 million tonnes of waste from landfill per annum; · Create up to 9,000 jobs; · Deliver $500 million in a net benefit to the New Zealand economy per annum. You can read a summary of this report here: http://bit.ly/WastedOpportunity You can view an infographic of the key findings here: http://bit.ly/WastedOpportunityInfographic

“If landfill is cheap and convenient, then where are the drivers for change?” Rose believes that while consumers are exerting more pressure on business to step up, change needs to be supported at multiple levels and in a variety of ways, with one of these key levers being the waste levy. “Experience here and abroad shows that recovering the

NZ Manufacturer July 2017

www.nzmanufacturer.co.nz

Adele Rose, 3r Group Chief Executive. Credit: Matt Hunt, CreateVideo.

ADVISORS Mike Shatford is an expert in the field of technology development and commercialisation. His company Design Energy Limited has completed over 100 significant projects in this vein by consulting for and partnering with some of New Zealand’s leading producers. Among Mike and his team’s strengths are industrial robotics and automated production where the company puts much of its focus.

Sandra Lukey

Sandra Lukey is the founder of Shine Group, a consultancy that helps science and technology companies accelerate growth. She is a keen observer of the tech sector and how new developments create opportunity for future business. She has over 20 years’ experience working with companies to boost profile and build influential connections.

Phillip Wilson Chris Whittington

Senior Lecturer at AUT, Chris Whittington is a versatile Engineer, Educator and Researcher. Chris has had many years experience in senior engineering and product management. Chris has a strong background in computational modelling, 3-D scanning and printing, and a strong interest in engineering education.

Phillip Wilson of Nautech Electronics has over 25 years of experienced in the development, commercialisation and implementation of advanced manufacturing technology, robotics, automation and materials. Serving companies operating within the aerospace, automotive, offshore, defence, medical and scientific industries on a global basis. More recently specialising in change management and business re-alignment for a range of commercial entities from medium sized SME’s to divisions of large corporates.

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

Companies embracing, and finding value in, the circular economy Shifting to the circular economy could release $4.5 trillion in new economic potential by 2030. The circular economy – an economic model focused on designing and manufacturing products, components and materials for reuse, remanufacturing, and recycling – promises big opportunities for the private sector to drive new and better growth and accelerate innovation. Shifting to the circular economy could release $4.5 trillion in new economic potential by 2030, according to Accenture. But how do we take that vision of a circular economy – which imagines a world without waste – and translate that into profitable and scalable action? The U.S. Chamber of Commerce Foundation Corporate Citizenship Centre, a non-profit, is releasing a new report featuring case studies that illustrate how companies are translating their circular economy aspirations into action - and how that in turn drives greater resource productivity improvements, eliminates waste and inefficiency, and contributes to a stronger and more competitive economy.

Through its partnership with food waste reduction experts LeanPath, Aramark is accelerating its waste prevention and minimisation efforts by integrating LeanPath’s tracking and analytics technology platform into its largest 500 accounts. Since 2016, Aramark has rolled out LeanPath’s platform across 161 sites, slashing its food waste on average by 44% and reducing the amount sent to landfill by 479 tonnes. In instances of overproduction, Aramark donates unserved food to local food relief agencies or for composting. Eileen Fisher: The path to 100% circularity

Aramark: Reducing food waste

Eileen Fisher take-back programme, in which employees and customers can bring back unwanted Eileen Fisher clothing for $5 store credit per piece, started in 2009 under the name Green Eileen.

Food services provider Aramark has set a goal of reducing food waste by 50% by 2030 from its 2015 baseline, such as by setting standards for ordering, receiving, preparing, serving and tracking food production.

Funds raised from the programme are donated to organizations that support women, girls, and the environment. In 2017 Fisher Found was launched as the next iteration of Green Eileen, a circular take-back programme

Let’s take a look at some of the companies featured in the report.

that focuses on reselling, renewing (repairing slightly flawed pieces, for example), and remaking Eileen Fisher garments. Since 2009, Eileen Fisher has taken back over 800,000 garments and donated $2 million to its chosen causes. Eileen Fisher currently takes back 3% of the products it creates each year, and is working towards a goal to take back 100% of its output. Intel: Finding material

value

waste

Computer chip manufacturer Intel has set a goal to recycle 90% of its non-hazardous waste and divert 100% of its hazardous waste from landfills by 2020. Since 2008, Intel has recycled 75% of the total waste generated from its operations, such as through upcycling, recycling, recovery, and reuse. For example, Intel developed an onsite electrowinning system to recover solid copper for reuse from an aqueous waste stream generated by semiconductor manufacturing. The recovered copper can enter the metals market supply chain for reuse in other industrial or commercial

applications. The copper recovery process has been replicated at Intel’s microprocessor manufacturing sites and more than two-thirds of the waste was recovered in 2016. Additionally, over the past 10 years Intel has donated more than 1,000 pounds of copper to Arizona State University for use in the creation of works of art. Johnson Controls: Closing automotive batteries loop

the

Johnson Controls has designed its conventional automotive batteries so that 99% of the materials can be reused. Customers can return old batteries that are collected by Johnson Controls and turned into new batteries. The company’s circular supply chain has pushed recycling rates for conventional batteries to 99% in North America, Brazil, and Europe in 2015, enabling Johnson Controls to produce batteries containing more than 80% recycled material. In partnership with suppliers, customers, and logistics partners, Johnson Controls has enabled hundreds of millions of batteries to be properly recycled and recovered into new batteries. The benefits include a more resilient raw material supply, job creation and economic development for local communities and suppliers, and a 90% reduction in energy by using recycled plastics instead of virgin plastic.

2017 New Zealand Manufacturer Excellence in Manufacturing For an Entry Form and further information contact: Doug Green, Publisher, NZ Manufacturer P: 0064 6 870 9029 E: publisher@xtra.co.nz

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

www.nzmanufacturer.co.nz

Perfection is not attainable. But if we chase perfection, we can catch excellence. – Vince Lombardi

SKF enters the world of manufacturing using world-class digital technology SKF’s operations in Sweden are set to be given a boost with the inauguration of a completely new, fully-automated and digital production process in Gothenburg, adapted for the manufacture of spherical roller bearings. The new production unit is the first of its type to be put into operations within the SKF Group and is part of a programme of next generation manufacturing technology within the company. “The production flow is totally unique within the bearings industry, and

constitutes a new manufacturing standard for us, which we will replicate into numerous facilities within the Group. “The investment programme is important for us if we are to utilise our manufacturing capacity even more efficiently, as well as increasing our global competitiveness and the flexibility we can offer our customers,” says Luc Graux, Director of Manufacturing for the SKF Group. Using the help of digital technology, the entire value chain in the production process is connected, from

the inflow of input components to the delivery of the product to the end user. In addition, the next generation of mobile infrastructure is combined with the manufacturing process, in order to enhance efficiency. “The new production unit will open up new possibilities for us to reduce lead times and to improve flexibility and efficiency in our production,” says Sten Karlsson, project manager for the new production unit. Parallel to the investment in Gothenburg, similar investments are planned for Schweinfurt in Germany

and Flowery Branch in the USA. Over a million bearings per year are manufactured in the Gothenburg facility. The majority of these are exported. The products are used in heavy industry, such as mining, steelworks, paper machines, wind turbines, train gearboxes, fans and pumps.

America’s Cup success for small NZ company A small New Zealand firm made a giant contribution to the America’s Cup. ‘YachtBot’ – GPS tracking systems invented by Dunedin firm Igtimi – was on nearly 40 boats operated by America’s Cup Event Authority (ACEA) including official, photo, television, mark-setting and VIP boats. YachtBot lets the race organisers build a “virtual stadium” on the water, and establishes a “seating plan” for nearly 1,000 Superyachts, VIPs, and the public. As weather conditions change, ACEA dynamically adjusts the race course

and spectator areas to ensure that everyone is as close to the racing action as possible.

imaginary race boundaries.

Igtimi Co-director, Brent Russell, says “The America’s Cup has never been able to do this before, YachtBot is a critical part of on-water operations”.

Mr Russell says YachtBot’s goal was to provide cutting-edge training and tracking tools at all levels of sailing from the Olympics to clubs. They have customised that technology for the America’s Cup.

Using iPads, YachtBot also helps the organisers place the buoys on the course, and displays the AC45 race boats and helicopters to provide “full view” management. It allows skippers and passengers a first-hand account of where they are relative to the

“Our first tracking devices were on the 33rd America’s Cup boats in Valencia in 2010. Since then, we’ve made them accessible for club yachting. It’s great that America’s Cup picked up on our hardware again at the elite level. The bonus is, we’ll bring this upgraded

technology back to club yachting, so it’s a win for everyone,” he says. Co-director, Kylie Robinson, says the YachtBot technology proved to be very popular during the America’s Cup World Series in Japan. “They were impressed to find that the volunteers using our technology to place the race markers did so faster and more accurately than those who were fully qualified in buoy placement!” she says.

Design Energy Specialists in Industrial Automation Giving local manufacturers a globally competitive edge

Robots Turn-key Solution Design Services • Machine Tending • Welding • Product Life Testing

• Palletising/Packing • Machining • Labour Replacement

• Assembly • Labelling and Marking • Custom Processes

High Performance Industrial Robots

Production Solutions for SMEs

World Leading Collaborative Robots

www.designenergy.co.nz

0508 ROBOTS

info@designenergy.co.nz

(0508 762 687)

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

DEVELOPMENTS

However beautiful the strategy, you should occasionally look at the results. – Winston Churchill

Prime Minister talks manufacturing to the NZMEA in Auckland

The NZMEA was pleased to host the Prime Minister, Bill English, to speak to our manufacturing members in Auckland. It was great to hear the Prime Minster acknowledge the contribution manufacturing makes to our economy, recognising in particular its role as a stabilising factor in times of low returns from commodity exports. He also acknowledged that the success factors in manufacturing “aren’t always obvious from the outside” and referred to a thriving furniture manufacturer in the North Island that made agile responses to customer demands a critical success factor – a deviation from common government practice that recognises excellence in manufacturing only when it comes in the guise of ‘sexy’ high-tech products. Another welcome acknowledgement from the PM was his assessment that current methods to measure business R&D expenditure in manufacturing are falling well short of the real picture, as companies have no incentives to separately account for R&D expenditure, and consequently don’t do so. During the ensuing Q&A session, NZMEA members raised the issue of skill shortages, particularly the difficulty in finding suitably qualified and skilled trades workers. These skill shortages are often the single biggest barrier to expansion of Kiwi manufacturers.

Government effectively working alongside industry to provide relevant training and experience that manufacturing needs to grow and thrive into the future. After a defensive response initially, saying that “it’s business’ job to train the people it wants”, the PM conceded that the government did have a role to play as the major funder of tertiary education and suggested to take this up with the minister in question, Paul Goldsmith – a suggestion we are certain to follow. The NZMEA event also highlighted and discussed the use of new technology in manufacturing, reporting back on a recent NZMEA and Callaghan Innovation study tour to Germany. This highlighted examples of using automation and networked manufacturing overseas, and work

There are examples around the world, particularly Germany, of

Develop your people & grow your business Speak to us about training options 0800 526 1800 competenz.org.nz

NZ Manufacturer July 2017

Dieter Adam, NZMEA

Helping manufactures leverage future technology to improve their processes and productivity, and understand what their competitors are doing, is key for the future success of the manufacturing industry.

have simply given up trying, as the current system is far too complicated and cumbersome”, as one remarked, adding “what we need is for the R&D tax credits to come back!”.

We want to see the Government continue and expand their work in supporting productivity improvements and innovation through R&D in manufacturing. A number of the manufacturers present reminded the Prime Minister that the current government support for innovation simply doesn’t work for most of them. “The system works for the big companies eligible for Callaghan Innovation’s Growth Grants, but the majority of manufacturers who only have access to Project Grants

We want to see the Government continue and expand their work in supporting productivity improvements and innovation through R&D in manufacturing.

We are seeing an increasing number of graduate engineers coming through the education system, but those with trade’s skills and practical skills are not coming through the system in the quantities needed.

being done in this field in New Zealand by Assa Abloy NZ.

www.nzmanufacturer.co.nz

Also highlighted was the issue in how Callaghan defines R&D investment as a barrier to some manufacturing companies gaining any support. Many manufacturers struggle to get the development side of their innovation work recognised - creating new and more efficient processes that allow them to stay competitive is just as critical as product development. The NZMEA is running a political forum event on the 7th of August in Christchurch, bringing together representatives from three major parties to discuss manufacturing and what they believe Government can do to facilitate high value growth in manufacturing and the wider economy. Featuring Steven Joyce, National MP and Minister for Finance and Infrastructure, Grant Robertson, Labour’s Finance Spokesman, and James Shaw, Co-Leader of the Green Party. For more details and registration for the event, visit: https:// www.nzmea.org.nz/we-connect/ events-and-training/

Read the Manufacturing Stories thatHEADING Matter

If you want to live a happy life, tie it to a goal, not to people or things. - Albert Einstein

title text

March

2017

igh Need H of es Quantiti Fast? es yp ot ot Pr

om.au rinting.c direct3dp

o.nz

rer.c nufactu

www.nz

9 5

S NEWS BUSINES itors trade vis g buildnz 0m buyin bring $53 power.

e past

bs of th

Y COMPAN PROFILE ing. Engineer

Mach 3

ING FACTUR MANU LOGY TECHNO process ses Robotic on increa automati veness. competiti

existing that by as, be he are new nic n ve into tting eve the mo rt-ups. and ge s or sta stern world petitive, n in a ious We companie com tio var d th m lly t ova l an abou globa hing fro tless inn a mon industria talked r Remaining s relen in everyt thods of to take ently for it, mean change rth furthe ve rec mselves rating It is wo ology, me tter at to ele ing the We ha be hn sly. on on acc tec iou from siti po duct re ser in relati we see ebsite siness. ur to pro w turing countries ing policy mo out where bu r vio fac ab ing n ha nu ou nk do be tur . of ma help thi productio t consumer Or on thods of manufac future l future jobs to may no r month viable. n and me ng the effects ity and industria se that $60 pe lly consideri productio change ica g what productiv work, and tho to al nin gy, om ue gic mi tin y on technolo technolo part in deter ves ma We con n. ead. Ec with licy mo rently How k like. big essible, will loo what po licies cur Plan ah sensible solutio have a future singly acc adding to sful. ustrial po nging back will ar ces rea ne ind A inc suc h r be ing the d bri of suc s in the on becom technologies fur is aroun criticism us in the job ati ic st vio ge tor tom ob rhe st 4.0 d see au The big ra.co.nz e of the s has been mo back ‘ol industry xt ject, d som ing r@ sub t ate ng s ity. thi he – t bri ctiv is tha on thi s that associ l in produ the past” can’t be abou t publis more or reports nge wil for reason me. “jobs of increases But it merous Contac gical cha ho are gone out States. d in jobs, been nu how technolo se jobs here at se fin ve or tho , rea ha United US es, to 9029 ate ere the an inc ile most cas petitive Th to estim that in els, wh suggest 06 870 jobs’. In ood, be imates skill lev ense com world attempting Phone underst h high ed int Such est the . can be ve fac and wit ct jobs. around ries ha numbers t areas y our impa ability e r indust differen ing cap a countr ase in job , but on in tur as t cre lity ve e All ou fac bu de ha rea a nies as manu same tim envision l be the tinue to r compa pressure while at the titors others what wil ents will con d, and ou , to tell owner r compe ged behin increases while ou ply chains, It is too early t skill requirem nment as the ng ity has lag reases, ver d traini productiv relative cost inc tter fit into sup gely what certainty is tha area where go tion an e be r educa es lar is is an faced som t positions to st of ou role. nge. Th still dictat ip mo ic cha rsh gh of log l de rcia esses a lea nager have sou - comme at busin to take ing and ma s le wh ha tak mp is at re ing ctu sion, for exa k hard overseas. d remain of infrastru s discus appear ed to loo d. oning titive an rt of thi jobs dis is we ne y compe in New Zealan ve positi nment ond pa means es to sta The sec ver competiti s really jobs themselv our Go ve the t viding What thi are doing ing and pro to impro w Zealand. For conditions tha res measu in Ne es and ating manufactur turing of polici t, while facilit fac set nu a ma ating adap ans cre w and this me esses gro r busin help ou

g Bringin

back jo

ise in ce Advert arketpla turers M $30

Manufac

ne have go turers stances: manufac of circum and a C, our the GF ular tough set ducts, Since cy ny pro a partic r curren for ma n of ou through mand tio de ner lua l lea ba rva e slow glo erable ove to becom entless of consid ers have had e – rel period factur to surviv e, and the nu ls de ma - our siness mo going to chang s beyond just bu ge is not and ad challen m. n. That uctural e of the innovatio facing some str le is on is k of sca more industry lued dollar. Lac ers are rva nufactur t innovation ma our ove r smalle ly, bu sense e quick ng e on cha In le to page 16 and ab ued on nimble

contin

NCE OMPLIA RADE C EMZ G D O O H F WITH C IS EASY

2017

www.nzmanufacturer.co.nz

Media Kit including Editorial Calendar

NZ Manufacturer is distributed to 22,900 manufacturing and industrial companies throughout New Zealand.

Manufacturing Technology / New Products for Manufacturers / Disruptive and Future Technologies / Export Success / Trade Show Previews and Reports SouthMACH 2017 / AusTech 2017 / Company Profiles / Analysis / Interviews / Food Manufacturing / Infrastructure / Smart Manufacturing

To join our subscriber list email publisher@xtra.co.nz

www.nzmanufacturer.co.nz www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

NEW PRODUCTS

Great things are done by a series of small things brought together. – Vincent Van Gough

Olympus portable flaw detector for challenging inspections Olympus is pleased to announce the launch of the EPOCH 6LT Flaw Detector, designed for the unique requirements of even the most challenging conventional ultrasonic inspection applications. Optimised for single-handed operation, the EPOCH 6LT flaw detector combines a leading-edge ergonomic design with powerful ultrasonic functionality in an instrument built specifically for rope access and high portability applications, such as inspections of offshore oil platforms, in-service wind turbines, aviation, bridges and structural steel. The design of the light weight, EPOCH 6LT flaw detector is optimised for user comfort, making it easy to use with one hand. For rope access and other high portability inspections, technicians can either use just one hand or attach it to their legs for hands-free functionality,

allowing them to do inspections safely, comfortably and efficiently. The EPOCH 6LT delivers lightweight, reliable flaw detection in the palm of your hand, weighing just 890g with a grip-orientated weight distribution. Additional key features include: • Hands-free operation: the device can securely be attached to a user’s leg or harness with the display rotating so users can properly view the A-scan and readings • Easy navigation: the rotary knob and simple button design make it easy to navigate through the user interface, even while wearing gloves. The device also has intuitive software featuring a two-screen, icon based interface to make navigation even quicker and easier • Durable and reliable: engineered to IP65/67 for dust and water resistance and drop tested to protect against the hazards found in challenging inspection environments • Compliant to EN12668-1:2010

The EPOCH 6LT features optional Wi-Fi connectivity for ‘on the go’ backups, set up downloads, and powerful cloud applications on the Olympus Scientific Cloud. It also has optional corrosion software, combining the ease of use of a thickness gage with the flexibility of a flaw detector.

more time on their inspection and

With a simple and straightforward workflow, technicians can spend

functions

less time adjusting the instrument. For added efficiency, users can control the inspection parameters without interrupting flaw scanning. The EPOCH 6LT has a small footprint, packed

with

advanced

and

features,

connectivity

for

inspections without compromise.

Cribbing and jacking blocks can take the heavy loads The Cribbing and Matting Company, one of industry’s leading suppliers of cribbing and matting products in the South East Asia region, including Australia and New Zealand, has added the proven Dura Crib Prime Cribbing Blocks to its comprehensive range of jacking blocks and stabilising tools. The lightweight, splinter-free, non-absorbent and environmentally sustainable Dura Crib Prime Cribbing Blocks are designed to be used whenever a person is working on or near a structure or work piece being stabilised in a wide range of industries, including mining, materials handling, building, construction and manufacturing.

Engineered for maximum durability and tested under the guidance of Australian Standards to ensure optimum safety and risk management, the Dura Crib Prime Jacking and Cribbing Block is an excellent alternative to timber dunnage and blocks used in jacking and stabilising of heavy loads. Made from recycled plastic, the Dura Crib Prime Cribbing is not only far safer than timber, as it won’t splinter or rot, it is also great for the environment. The pyramid profiles on the two surfaces of the Dura Crib Prime Crib provide a secure base and top that can interlock at any angle, with the three side notches interlocking for ultra-secure stacking performance. The positive interlocking of the cribbing, by gravity and friction forces, produces excellent stability and load bearing capacity. The Dura Crib Prime Cribbing Block is certified load rated with a working load limit (WLL) of 60.8kg/ cm2, with a maximum working load capacity 58,800kg. Exceptional for four point and nine point cribbing stacks, the cribbing offers stack load capacities of between 58,800kg and 132,000kg. The high performance Dura Crib range was developed to replace

NZ Manufacturer July 2017

www.nzmanufacturer.co.nz

older, weaker wood cribbing systems with constant cracking and varying and unpredictable load-bearing capabilities. Not only is wood impossible to authenticate for Working Load Limit, wooden blocks require ongoing replacement involving extensive handling, consumption and disposal of a finite resource. In addition to wastage of scarce hardwoods, there are disposal problems with tons of wooden cribbing that soaks up oil, chemicals and hazardous waste products that abound on maintenance, fabrication and worksites. Such hazardous substances contained in waste wood cannot be dumped into landfill, where they can find their way into the water tables of rural and urban communities.” The use of timber blocks being used for jacking is a thing of the past, and is declining in many industries throughout Australasia and South-East Asia. Available in hi-visibility yellow or standard black, the cribbing is manufactured from 100% recycled high density polyethylene (HDPE) construction for durability and tested under the guidance of AS1170.0.2002 and AS2498.3.1998.

Light weight and resistant to fuels, oils and most common industrial solvents and chemicals, the cribbing is backed by a 50-year warranty against splitting, rot, fluid absorption, termites and mould. Dura Crib systems have been extensively proven under some of the world’s toughest safety regimes in the United States of America. A major advantage of Dura Crib is that it is a complete system of integrated products that can be combined to provide comprehensive solutions across a wide range of industries. Dura Crib offers complete solutions and continuity of supply for particular applications, rather than piecemeal product ranges and erratic availability. Offering outstanding strength and stability, Dura Crib is suitable for both active cribbing, where a person is working on, underneath or near the supported load, and for passive cribbing, where cribbing is used to keep the load off the ground, allowing forklift access for example. Dura Crib provides an engineered and easily handled system and is the safest and fastest way to stabilise loads, including machinery and vehicles ranging from cars to heavy trucks.

NEW PRODUCTS

Lean is about constant ticking, not occasional kicking. - Alex Miller, Professor of Management at The University of Tennessee

M7 pouch filling-sealing machine a step up The M7 Pouch Machineâ&#x20AC;&#x2122;s main function is to open, fill and seal, stand-up pouches with wet or dry product. Available in single or twin head models, the M7 is easily integrated with different filler types (auger, piston, linear weighers) or product can be loaded manually. Single head models are capable of outputs up to 15 (M7) or up to 20 (M7 PRO) pouches per minute. The M7 can handle a large range of

bag sizes (80mm-320mm wide) with fill weights from 10g to 25kg in multiple pouch formats including side gusset, spout, handled, shaped and 3 sided (flat) pouch.

Suitable applications include fruit and vegetables, liquid food, confectionery, snacks, tea & coffee, seafood, pet food, powder, granules, and household products.

This versatile, compact pouch machine features stainless steel construction and is controlled by PLC. Mounted onto lockable castors and with several washdown options, it is ideal to be wheeled in and out of food production lines.

Machine options include: pouch printer/labeller, thermal embossing, gas flush, dust extraction port, zipper opener, outfeed conveyor, scoop inserter, product settler, bespoke seal bar. A two year warranty is offered by the manufacturer.

Reducing accidents caused by fatigue driving To reduce accidents caused by fatigue driving, Hong Kong Baptist University (HKBU) Computer Science scholar Professor Cheung Yiu-ming and his team have developed a system that detects drowsy drivers and alerts them simply using a generic smartphone. This invention clinched two top prizes at the 45th International Exhibition of Inventions of Geneva in April 2017. The research team has already submitted a patent application to the US for the system. The new approach adopts a smartphoneâ&#x20AC;&#x2122;s real-time video to track and analyse the facial features of a driver, in particular the changes in his eyelids and head position, which are

prominent fatigue symptoms. With this system pre-installed in a generic smartphone, a driver just has to put it near the steering wheel with the front camera facing him in his normal driving position. When the camera captures features like drooping eyelids, drowsiness or even nodding off, an alarm is automatically set off. To ensure that the driver is awakened, the driver has to turn off the alarm either by voice or by hand. This method requires only a smartphone without any additional devices or sensors. It is cost-effective, simple to operate, portable, detects accurately, highly reliable, and supports online system updates.

As the system can activate the rear camera of the smartphone, it can also be utilised as a normal driving recording system, as used by many drivers now.

systems require additional devices and sensors installed in a vehicle, making them non-portable, expensive and difficult to fit system updates, thus not beneficial to general drivers.

There is no similar product currently available on the market, making it potentially applicable to act as a driver assistance system to enhance road safety as well as appealing to the consumer market. Fatigue-driving detection systems are currently installed only in a few luxury models offered by car manufacturers. Those

How a generic smartphone with the fatigue driving detection and alarm system installed captures facial features.

Dependable protection for sensitive production processes The latest generation ACT series activated carbon adsorbers from Kaeser are able to deliver a continuous supply of premium quality compressed air that is technically oil-free as well as odour- and taste- neutral. Installed downstream of compressed air drying and pre-filtration components, they attain Class 1 residual oil content as per ISO 8573-1, to ensure dependable protection of sensitive production processes. This makes the ACT series the ideal choice for applications in the; optical, surface technology, electronics, foodstuffs and pharmaceutical sectors. In order to meet the strictest ISO 8573-1 Class 1 compressed air purity class requirements, compressed air should have a residual oil content of no higher than 0.01 mg/m3. Class 1 compressed air is therefore significantly cleaner than typical ambient air. For this reason compressed air treatment is essential irrespective of the compression method that is used to produce it. To achieve this level of purity, more is needed than to simply remove the residual oil content via filters. The

vapour component also needs to be retained by means of adsorption on activated carbon.

the exceptional compressed air purity is reliably assured for up to 12,000 full load hours, or a maximum of five years.

The high performance ACT series activated carbon adsorbers from Kaeser can achieve residual oil content significantly lower than the threshold value for Class 1 compressed air purity.

Low life cycle costs are also assured with the latest ACT series models. Thanks to significantly longer service intervals, the life-cycle costs of the ACT models can equal those of high quality activated carbon filters in their third year.

Generously dimensioned flow diameters, together with stainless steel flow diffusers, ensure even flow distribution with an exceptionally low pressure loss no higher than 0.1 bar. As a result, the compressor discharge pressure of upstream compressors, as well as the energy costs for compressed air production, can be kept as low as possible. The ACT series activated carbon adsorbers are exceptionally reliable. They utilise a high quality and generously sized activated carbon filling. Optimised for gas purification, this special type of activated carbon is fine pored and possesses an exceptional retention capacity. Furthermore, specially designed stainless steel flow diffusers ensure even flow distribution throughout the activated carbon bed. Consequently,

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

FOOD MANUFACTURING

Any skilled engineer can take control remotely of any connected ‘thing’. Society has not yet realised the incredible scenarios this capability creates.

- André Kudelski, Chairman and CEO of Kudelski Group

World Class New Zealander Award for FAR’s Phil Rolston FAR’s Phil Rolston is officially a World Class New Zealander! Dr Rolston was one of six people from very different industries who were honoured at the 2017 World Class New Zealand Awards in Auckland. Judging panel chair Phil Veal said the awards showcased the very best of this country’s talent, and focused on how individual’s contributed to New Zealand’s global reputation, building global connections for New Zealand, and promoting the exchange of information, knowledge and skills. Phil’s citation referenced his scientific influence on the farming sector worldwide, from New Zealand to China. Phil has invested 42 years with DSIR Grasslands/AgResearch in forages and forage seed research and is currently employed by the Foundation for Arable Research. In 1996 he received China’s highest award to foreigners, the Friendship Medal, 1996. In 2005 he received the NZ Institute of Agriculture, and the Horticulture Technology Transfer Award. Phil was acknowledged as Researcher of the Year by the Foundation for Arable Research in 2008. He also received the China International Science and Technology Cooperation Award, 2015. The other 2017 winners are: • Parris Goebel - Choreographer & Founder of ReQuest, The Royal Family and The Palace Dance Studio • Ian Wright - Engineer & Founder of Wright Speed • Dr Privahini Bradoo - Scientist, CEO and Founder of BlueOak

• Robert Oliver Restaurateur

Chef, Author,

• Sir Rob Fenwick KNZM KStJ The World Class New Zealand Awards are New Zealand’s most prestigious individual achievement awards,

acknowledging the international talent.

country’s

top

Established in 2003, the awards recognise world-leading Kiwis whose inspiring achievements are defining New Zealand’s image internationally.

There are plenty of Awards celebrating success in New Zealand - the key point of difference for these Awards is the celebration of global success often from Kiwis who have achieved outstanding and, in many cases, world-changing success offshore.

continued from Page 13

The dawn of the new industrial era with the Smart Factory diagnostics and optimize processes. New challenges factory

the

smart

In the Smart Factory of today, many processes in manufacturing have been automated to reduce the level of human participation, and thereby error. Future machines will be smarter, so we need to have more intelligent devices within these machines, making decisions on their own. One of Eaton’s top three solutions in the manufacturing segment, the SmartWire devices, enables businesses to adapt to the Smart Factory of today. With the cost of labour rising in China today, manufacturers are seeking for more efficient way to improve their productivity and efficiency.

NZ Manufacturer July 2017

Revolutionary products like Eaton’s SmartWire-DT can cut wiring efforts by 70% to achieve greater transparency and minimize downtime and manpower. This solution was adopted by in China Zoomlion, one of the largest manufacturers of construction solutions. Smart devices are the key to powering a Smart Factory. This is especially relevant in Asian markets, which focus on high-end machinery OEM customers with complex machinery. To fully reap the benefits of automation in manufacturing, the industry must use smart technology and equipment strategically to reduce the complications arising from the implementation of such complex machinery, and the issues associated with these new systems. New energy companies such as solar

www.nzmanufacturer.co.nz

and wind power providers, which are gaining traction fast in energy-hungry China, rely on such high-end machinery. A device like Eaton’s solar inverter solution can reduce the maintenance cost associated with such equipment. By improving the overall reliability and efficiency of these machines, smart devices have positioned themselves as an integral part of the manufacturing industry’s evolution. Harnessing the potential of Industry 4.0 So, what are the next steps for manufacturers to take? First and foremost, it is to advocate a digital mindset shift in the organisation. Industry 4.0 is not a technology, or system, but rather an approach to doing business. The

fully

integrate

automation into business strategies to realize its maximum potential. Automation cannot merely be an afterthought, but must be recognized as a legitimate business model that will help your organisation stay relevant with the advent of Industry 4.0. Lastly, acknowledge the importance of acquiring talent in this field, who can be the ambassadors of Industry 4.0 and lead the charge within the organization. Empowering employees with smart infrastructure and access to data will drive them embrace an enduring culture of productivity and innovation. In taking a proactive stance to the evolution of the manufacturing industry, manufacturers can lead rather than follow the Industry 4.0 phenomenon.

FOOD MANUFACTURING

A relentless barrage of “why’s” is the best way to prepare your mind to pierce the clouded veil of thinking caused by the status quo. Use it often. - Shigeo Shingo

WaterForce improves agricultural efficiency and sustainability Schneider Electric, the global specialist in energy management and automation, has announced the success achieved with WaterForce, a leading provider of water management and irrigation solutions in New Zealand. Schneider Electric worked with WaterForce to develop a cloud-based Industrial Internet of Things (IIoT) mobile control solution, built on Microsoft Azure and Azure IoT technologies, which enables farmers to operate irrigation pivots with greater agility, efficiency and sustainability. Agriculture accounts for nearly 70 percent of the world’s water consumption. As global food demand grows, water use is expected to rise – making efficient irrigation critical. With Schneider Electric’s EcoStruxureTM architecture, WaterForce developed a cloud-based IIoT solution so farmers can monitor and control irrigation pumps and pivots from their computer, tablet or smartphone. EcoStruxure is Schneider Electric’s IoT-enabled, open and interoperable system architecture and platform. It delivers Innovation At Every Level across connected products, edge control, and apps, analytics, and services, and enables scalable design and operation of connected systems for increased operational efficiency. “Every day I adjust my pivots and pumps for a variety of reasons – shifts in the wind, rain levels, crop requirements or local regulations,” said Craig Blackburn, Director Farm Manager of Blackhills Farm, “Now I can monitor and control my irrigation system easily from my mobile phone, saving me hours of time not spent driving around the farm. With information at my fingertips, my farm is more productive, water and energy costs are lower and crop yields higher.”

and mobility solutions, HMI/SCADA, variable speed drives and soft starters. The solution is built using Microsoft Azure IoT Hub, which includes a collection of integrated enterprise tools including devices, software, cloud, data and analytics. “By 2050 we will need 55% more water to nourish the growing demand for food, so efficient irrigation is critical,” said Rob McGreevy, Vice President of Information, Operations and Asset Management at Schneider Electric. “We believe improvements

driving operational and efficiencies at

these farms is a key component to sustainably f e e d i n g the planet. EcoStruxure simplifies the integration between the connected products, edge control, and apps and analytics, to provide an innovative solution that responds to the specific needs of these farmers.” “Schneider Electric leverages Microsoft

Introducing

Azure and Azure IoT technologies to equip farmers with the ability to unlock new insights and make the best possible decisions in real-time around water usage and energy efficiencies.

A point of difference in today’s busy FMCG market.

Developed by AsureQuality, inSight™ provides shoppers with independently verified information about the products they are about to buy. After a successful application process, producers can place the inSight™ logo and a QR code on their product packaging.

When shoppers scan the QR code at the point of sale they can access information about the product, including: • • • • •

Environmental sustainability Social and ethical concerns Nutritional information Safety and quality Origin

Unique to this solution is its ability to work with a farm’s existing equipment, such as irrigation and pump controllers. This means no significant capital investment is required before seeing benefits. “Most farms are not built to handle large software installations,” said Ron McFetridge, Director of WaterForce. “Using a lightweight, cloud solution with mobile capabilities has been key to expanding IoT capabilities to these farms. “By leveraging our relationship with Schneider Electric, we can focus on our core business – effective water management – knowing that the information management, analytics and automation side is covered.” WaterForce’s solution integrates multiple components of Schneider Electric’s software and hardware product portfolio, including cloud

Why the Need for inSight™? inSight™ takes product assurances into the 21st century inSight™ is a new brand developed by New Zealand Government owned AsureQuality, global experts in food safety and quality. We know how important food safety and quality is to you. We wanted a way that you could get independently verified information about a product, that would give you confidence in it before paying for it. inSight™ makes sense because: • You want to know more about the food you are eating

A new innovation taking product assurances into the 21st Century

Freephone 0508 00 11 22 | www.aqinsight.com

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

SUPPLY CHAIN

Digital is the main reason just over half of the companies on the Fortune 500 have disappeared since the year 2000. - Pierre Nanterme, CEO of Accenture

Upcoming changes to CPIM, Certified in Production and Inventory Management By Vishnu Rayapeddi, B. Pharmacy (Honours), MBA (Ops.), Lean, SSGM, CSCP, CLTD

While acquiring a certification can have a significant effect on your career trajectory, it’s a process that requires a considerable outlay of time and money. For individuals in the early stages of their career, it can be difficult to make an informed choice. To help make this decision easier, here are some tips... According to experts, if you’re seeking a career in inventory management, then APICS’ CPIM is the best certification to get. Over 100,000 (over 770 in NZ) people have pursued the CPIM since its inception in 1973, making it the most recognised of all the certifications in the supply chain sphere. APICS describes the CPIM in rather broad terms on its site, but Rich Sherman, a consultant at Trissential boils it down to the following: “You get the CPIM if you want to learn production planning, scheduling and inventory management. It’s very plant floor focused.” No bachelor’s degree is required, and you need only two or more years of experience in the field. Monty Boyle, a consultant in the US who has the CPIM, says that each individual will get something different out of it depending on their prior experience, but stresses that the certification training provides everyone with a solid grounding in the terminology

NZ Manufacturer July 2017

and thought processes involved in production and inventory management. As a result, people who have the CPIM share common concepts and terminology that are very valuable in the workplace. For example, Boyle highlights the section of the exam dedicated to manufacturing capacity planning, which analyses capacity planning in three ways: according to the factors of a master production schedule, using capacity bills and using resource profiles. Anyone with the CPIM will likely approach capacity planning in a similar way. Current Structure: The CPIM requires you to take not one, but five exams on five different modules of study: Basics of Supply Chain Management, Master Planning of Resources, Detailed Scheduling and Planning and Execution and Control of Operations.

www.nzmanufacturer.co.nz

New Reconfigured Structure: From September CPIM will have just 2 parts, Part-1 and Part-2 with 2 exams of 3.5 hours and 150 multi-choice questions. Both parts come with extensive online study tools, including a pre-test, chapter wise quizzes, a post-test, a practice exam, flash cards, activities and much more. Part-1 will be an enhanced Basics of Supply Chain Management module and Part-2 consists of SMRStrategic Management of Resources, MPR-Master Planning of Resources, DSP-Detailed Scheduling and Planning, and ECP-Execution and Control of Operations.

NZPICS will continue to support those who are midway through their current CPIM. NZPICS also offers various other APICS courses including, Principles of Operations Management (ideal for lower levels), CLTD, Certified in Logistics, Transportation and Distribution, CSCP, Certified Supply Chain Professional and SCOR-P, Supply Chain operations Reference Model Professional. For Further information on CPIM or other APICS courses, please contact NZPICS on (09) 525 1525/1535 or email info@nzpics.org.nz or visit their website www.nzpics.org.nz

For people with a disability, the Fourth Industrial Revolution will give us super powers. - Birgit Skarstein, Double paralympic athlete and World Rowing Champion, Norway.

DEVELOPMENTS

Napier Port orders more lift trucks from Konecranes Napier Port continues to rely on Konecranes to further strengthen its important position on New Zealand’s North Island. In December 2017 six new lift trucks will be delivered to the terminal, situated in the rapidly growing Hawke’s Bay region. The most recent order from Napier Port includes two Konecranes Liftace R 6-41 MS reach stackers, two Konecranes Liftace FDC 25 K7 DB empty container handlers, and lastly, two Konecranes Liftace FDC 480 G4 full container handlers. Another two FDC 480 G4 full container handlers have recently been put into operation in the terminal.

logical to also opt for lift trucks from Konecranes. We are sure that relying on equipment and aftermarket support from one single supplier will enhance the efficiency of our operations.” Tony Maxwell, Managing Director of Port Solution Ltd - distribution partner of Konecranes Lift Trucks concludes: “Napier Port is situated in a region

known as ‘the fruit bowl of New Zealand’ due to its high quality fruit production. “The terminal is one of the country’s most important gateways to the world, with regard to both the export of goods such as food and timber, and the import of oil products, cement, fertilisers and general commodities,

and Konecranes machines play a key role. “In 2016, it was above all Napier’s container handling activities that grew significantly, and we are very pleased that this fast developing port decided to continue to benefit from Konecranes diversified offer.”

As the new reach stackers are foreseen to handle containers on both ship and rail side, Napier Port has deliberately opted for Liftace R 6-41 MS reach stackers. Being equipped with front side stabilisers, these machines feature up to 41 ton capacity in the second row and have a particularly low turning radius. Warren Young, Container Operations Manager at Napier Port, explains: “Our port is the logistic turnstile of the entire region. Technology from Konecranes has been a key element of our sustainable growth strategy and we are currently operating six Konecranes Gottwald mobile harbour cranes, four of which were delivered over the last four years. “As these machines have become an integral part of our operation, it was

From left, Tony Maxwell, MD Port Solutions Ltd., Warren Young, Container Operations Manager, Napier Port Ltd., Maurizio Altieri, Sales Director Konecranes and Adam Harvey, Terminal Manager Napier Port Ltd. with the previously delivered FDC 480 G4 full container handlers.

BISON container scales In demand at America’s Cup BISON, the New Zealand tech company, shipped a second set of its pioneering container scales to Bermuda, to the America’s Cup Event Authority (ACEA). The ACEA follows the lead of Emirates Team New Zealand (ETNZ), who adopted BISON technology to weigh over 60 container loads of tools and equipment needed to support their America’s Cup campaign. While the 35th America’s Cup spectacle took place on the water, a serious logistics operation occured in the background as the racing syndicates and ACEA moved all the necessary equipment in and out of Bermuda for the event.

containers as they prepared to depart from Bermuda.

With limited infrastructure on the island, BISON’s portable container scales proved to be an ideal tool for check weighing containers, ensuring containers stay under road and bridge weight limits and giving the shipper a verified container weight for vessel loading.

BISON’s revolutionary container scales, combined with a tailor-made smart phone App to capture and communicate weight data, have quickly propelled BISON onto the world stage. BISON’s hardware is now in use in over 25 countries. Notable customers include NASA, the US military, Virgin Galactic and Emirates Team New Zealand.

The British and French syndicates indicated they may also use the ACEA’s set of BISON scales to weigh their

Established in New Zealand in 2014, BISON Group Limited is a fast-growing tech company offering a unique range of container weighing and handling solutions to the shipping industry.

BISON CEO, Greg Fahey (right), delivering a set of BISON C-Jacks to ETNZ Logistics & Base Manager, Andy Nottage (2nd from right) and other ETNZ team members.

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

THE CIRCULAR ECONOMY

Out of clutter, find simplicity. From discord, find harmony. In the middle of difficulty lies opportunity. - Albert Einstein

Industry 4.0 an enabler of the Circular Economy Once upon a time, we were all farmers – we produced little waste and what was produced was mostly biodegradable. Then the first industrial revolution occurred. Powered by the steam engine, the by-product of manufacturing was unprecedented amounts of waste. Ever since, our economy has essentially been a linear one: a one-way street in which we take resources from nature, make them into products, and then eventually dispose the very products we created as waste.

smartphone is refurbished with a new touchscreen, a battery and a software update, it’s worth several hundred dollars again. There is a strong business case to integrate circular economy models into business as usual and strategy.

Now we are witnessing the fourth industrial revolution, this time driven by digitalisation and the huge volumes of data it generates.

neighbour’s power tool via Peerby Go.

Where Industry 4.0 meets the circular economy This is where the transitions to Industry 4.0 and the circular economy reinforce each other. The

And whereas the first industrial revolution introduced waste, the fourth has the potential to eliminate waste altogether.

Scarcity is driving the circular economy One of the drivers in the shift towards a Circular Economy, is the volatility in resource costs, mostly as it introduces risk - increasing prices, reducing quality and certainty of supply - that could ultimately impact the bottom line.

Scarcity also prompts authorities to impose tighter environmental standards on producers and consumers in order to reduce the use of resources.

Recovering value is key Circular business model transformations however are not primarily about resource conservation or waste reduction. The essence of turning linear models into circular ones is to not only prevent loss of value, but also recover it. The diagram below shows that when feedback loops are shorter (i.e. the smaller the circles), more value is recovered. For example, the scrap value of a smartphone is only a few dollars worth of precious metals. But taking a refurbishment approach means that when a defunct

NZ Manufacturer July 2017

• Circular strategies like recycling, remanufacturing and parts harvesting likewise require the collection and analysis of data about the usage and condition of parts. 2. Robotics: Human errors are the most common cause of product errors, both during the initial manufacturing process and in the use of the product. Advances in robotics allow manufacturers to employ robots in an increasing number of applications, thereby increasing yield and reducing waste, as well as extending product life times.

It supports circular business models that only consume renewable resources and keep materials from finite stocks in an infinite loop.

This is one reason why Danone, for example, prefers bio-based rather than fossil-based plastics for the dairy product packaging. Supply risk factors also play an important role in Apple’s ambition to end its reliance on mined resources, using recycled materials such as aluminium, copper, tin, and tungsten instead in its devices.

In addition, PaaS models allow capacity to be tailored to fluctuating demand, and provide manufacturers an incentive to produce goods that are durable, which should both help to reduce waste.

A pervasive shift in customer behaviour In addition to an increasing awareness of the need to adopt more sustainable ways of living, the primary driver behind the transition to a circular economy is a change in customer behaviour. Consumers increasingly prefer access to a service above ownership of the goods that provide it (e.g. mobility versus cars). And we see companies adopting the same reasoning in order to remain agile in a fast-changing and uncertain world, unencumbered from investing in costly infrastructure.

Enabled by technological breakthroughs Whereas the main driver is a change in customer behaviour, the main enabler of many circular strategies are technological breakthroughs. Social platforms for example facilitate sharing of an ever wider array of services and goods, from a place to stay during a city trip using Airbnb and city-to-city car sharing with Blablacar to borrowing a

www.nzmanufacturer.co.nz

various technologies under the umbrella of Industry 4.0 serve as a major enabler of circular strategies. At the same time, this contribution to a circular economic model gives the development of Industry 4.0 purpose and momentum. The following examples show how this may occur in practice. 1. Internet of Things (IoT) & data analytics: Products that are connected to the IoT allow manufacturers to control and analyse their performance at a distance and collect usage data. This provides a foundation for many circular business models: • Car sharing platforms require data about the whereabouts, the usage and the condition of each car. • In Products-as-a-Service (PaaS) models, manufacturers retain ownership and the responsibility for the flawless operation of their equipment. They can only do so when they are able to monitor and analyse performance at a distance.

3. Additive manufacturing or 3D printing: The use of 3D printing for the on-demand production of spare parts improves maintainability and extends the life cycle of products and equipment. It also affects product design in that future 3D part maintenance can be built in to the process.

Where Industry 4.0 and the circular economy meet, the waste of value is prevented, and the value of waste is recovered. What is becoming increasingly clear, is that where Industry 4.0 and the circular economy meet, the waste of value is prevented, and the value of waste is recovered.

BUSINESS NEWS

He who believes is strong; he who doubts is weak. Strong convictions precede great actions. - Louisa May Alcott

Manufacturers call for a stop to misinformation about Natural Health Products Bill A group of manufacturers say they are frustrated with the amount of misinformation circulating about the Natural Health Products Bill, which is resulting in consumers’ and the wider sectors’ interests being held to ransom by a small group of detractors. The Bill will regulate natural health products sold and marketed directly to consumers, which will provide both New Zealander’s and our export markets with a higher level of assurance that products are safe, approved, effective and contain what is stated on the label. While the Bill is designed to provide greater consumer confidence it also recognises the integral role health care professionals play in this industry. As such it does not apply to products that are prescribed or directly made available through trained health practitioners or traditional medicine practitioners. The Bill has been developed over many years as a much lighter New Zealand-only regulatory model than the previously-proposed ANZTPA (joint Australia New Zealand Therapeutic Products Act), in line with their low-risk nature, but is still awaiting its third reading. In fact New Zealand is the only first world country without a modern regulatory system for natural health and supplementary products. Most of the Bill’s detractors are fighting against it because they mistakenly believe that its regulations would prevent traditional and trained health practitioners from prescribing or making certain natural health products available. Vitaco Chief Operating Officer Roger Scott, Go Healthy Director Kurt Renner, New Zealand Health Manufacturing Managing Director Minesh Patel, Phytomed Technical Director Phil Rasmussen and Artemis founder Sandra Clair say they are frustrated at the amount of misinformation being circulated about the Bill. Speaking on behalf of the group, all of whom belong to the industry body Natural Products NZ (NPNZ), NPNZ’s Corporate Affairs Director Alison Quesnel says: “The irony is that most of the Bill’s detractors are not health product manufacturers or exporters. Many aren’t even in the natural health product sector. We question why this group is holding such sway over the

legislative process.” She comments that virtually every natural health product manufacturer she has spoken with – from very large companies to small ones – also support legislation because it will be good for business, good for consumers, good for the natural health industry, and therefore good for the economy. “Ongoing delays to the Bill’s passage are not serving any of us well and nor is it helping consumers or local manufacturers who only sell their products here and want to be able to talk more openly with their consumers about what their products can and will do for them.” For example, the current law prevents natural health product companies from making therapeutic claims about either traditional evidence or successfully clinically trialled products unless the product is licensed under the more expensive pharmaceutical medicine category. This is because New Zealand’s outdated regulations do not define ‘natural health product’. The group is actively working with the Ministry of Health to achieve the best possible regulations that fulfill a duty of care to the public with respect to providing easy and economical access to plant medicines and supplements that are safe, effective and suitable for use while also supporting a legislative framework that improves access to overseas markets for NZ manufacturers and exporters. A survey in 2014 showed that the natural products industry makes an estimated $1.4 billion per annum contribution to New Zealand’s economy (up from an estimated $1 billion five years ago). Around 85% of natural health product companies export and this is the primary area of growth for the industry. “Aligning our regulations to be more like those of our major overseas markets will make it easier to sell New Zealand-made products there and could potentially even provide automatic barrier-free access into some countries,” says Ms Quesnel. “This legislation can’t come soon enough.” For accurate information about the Bill, visit: http://www.naturalproducts. nz/natural-health-products-bill-faq/

The Inevitable: Understanding the 12 Technological Forces That Will Shape Our Future - Kevin Kelly,Viking. A guide through the twelve technological imperatives that will shape the next thirty years and transform our lives. Much of what will happen in the next thirty years is inevitable, driven by technological trends that are already in motion. In this fascinating, provocative new book, Kevin Kelly provides an optimistic road map for the future, showing how the coming changes in our lives—from virtual reality in the home to an on-demand economy to artificial intelligence embedded in everything we manufacture—can be understood as the result of a few long-term, accelerating forces. Kelly both describes these deep trends—flowing, screening, accessing, sharing, filtering, remixing, tracking, and questioning—and demonstrates how they overlap and are codependent on one another. These larger forces will completely revolutionize the way we buy, work, learn, and communicate with each other. By understanding and embracing them, says Kelly, it will be easier for us to remain on top of the coming wave of changes and to arrange our day-to-day relationships with technology in ways that bring forth maximum benefits. Kelly’s bright, hopeful book will be indispensable to anyone who seeks guidance on where their business, industry, or life is heading—what to invent, where to work, in what to invest, how to better reach customers, and what to begin to put into place—as this new world emerges. Fit for Growth Wiley, 288 pages Very few organisations manage their expenses for sustainable success. And when the time inevitably comes to cut their costs, many companies cut in a way that makes them weaker, not stronger. The experienced consultants with PwC’s Strategy team reveal the hidden problems of conventional cost management—and how your company can do better. Drawing on decades of research, observation, and experience helping clients, these experts have developed a unique approach to help CEOs and senior executives cut costs constructively. The Fit for Growth concept redirects an organisation’s resources and investments toward its few differentiating capabilities—the strengths that set it apart from competitors. When a company manages costs this way, it becomes fit for growth. Its cost structure, organisation, and culture are aligned with its strategy. In this book, the authors take you through every detail of the Fit for Growth approach. They walk you step by step through the nine most important levers to restructure costs, complete with case studies, and practical examples from leading companies around the world. From mobilizing to scaling to executing to culture change and leadership, this valuable hands-on reference stays with you throughout the entire process. It shows you how to: • Galvanise the executive team and the organisation to embark on a transformation • Apply cost reduction levers while avoiding common pitfalls • Overcome the shortcomings of basic change management techniques by using the best of your existing corporate culture • Confidently manage morale and keep the entire organisation engaged • Avoid falling back into old, unproductive behaviours

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

BUSINESS NEWS

There are better starters than me but I’m a strong finisher.” - Usain Bolt

Sweet success at University of Waikato’s Science and Engineering Open Week Sorting different sized lollies without touching them was just one of the tasks encountered by school students at the University of Waikato’s Science & Engineering Open Week last week. More than 500 secondary school students from across the North Island came to the University’s first-ever Science and Engineering Open Week which offered Year 12 and 13 students the chance to attendi hands-on workshops and experience a day in the life of science and engineering students. The workshops covered the programmes on offer in the Faculty of Science and Engineering. They gave potential tertiary students a taste of the fun and varied subjects available to study as part of a Bachelor of Science, Bachelor of Science (Technology) and Bachelor of Engineering (Honours). The lolly-sorting workshop was just one of the tasks encountered by students during the Engineering sessions. The Chemical and Biological & Materials and Process Engineering session challenged groups of students to find a suitable strategy to sort a range of lollies using separation processes such

as air classification, filtration and gravity. The project emphasised how engineers must separate materials such as plastics and synthetic fibres to recover useful product within them. Also on the programme for Engineering was a Mechanical Engineering workshop where students constructed and modified cars using different wheel sizes and gear ratios for delivering a bottle of water as fast as possible to an area on top of a ramp. A Civil and Environmental Engineering workshop showed students the importance of reinforcing materials, while an Electronic and Software Engineering workshop called for programming an electronic mousetrap. In Molecular and Cellular Biology students learnt about human physiology, measuring the strength of their grip force. They explored rock and mineral specimens and tried to lift a meteorite from Antarctica in Earth Science, and investigated micro-invertebrates as a measure of freshwater quality in Ecology and Biodiversity and Environmental Sciences.

Secondary school students from Thames High School sorting different sized lollies without touching them was just one of the tasks encountered by school students at the University of Waikato’s Science & Engineering Open Week recently.

In Chemistry and Materials Science, students experimented with liquid nitrogen and explosive reactions.

to talk one-on-one with our staff

Professor Chad Hewitt, Dean of the School of Science said the feedback was positive. “We had students come from as far away from as Whangarei, Hawke’s Bay and Nelson. It’s clear that school students, their parents and teachers really value the opportunity

engineering laboratories.

and current students, while getting hands-on experience in our science and “It was very encouraging to see students engaged with the changes we’ve made to the curriculum that allow greater access to other disciplines through minors”

Building’s role in addressing climate change Since we spend most of our time inside buildings, it is important to ensure that our living environment is either positively impacting the environment or lessen its environmental impact. As the standards of living and services is raised in developing countries, electricity consumption in buildings is expected to rise exponentially too. This has been proven by the increases

of GHG emissions from developing countries in Asia for the last three decades. The primary contribution of GHG emissions in building sector is fuel combustions, which is from fossil fuels used for electricity generation or for building operations. Electricity is the main energy consumption in building sector, with nearly 60% of the world’s total consumption, and commercial buildings in developed countries like the United States and Japan are driving peak demand and is expected to rise further. The bulk of GHG emissions are largely produced during the operational phase (80-90%) from energy consumption for heating, cooling,

NZ Manufacturer July 2017

www.nzmanufacturer.co.nz

lighting, ventilation and appliances. In the wake of recent news of the American President’s regrettably decision to rescind from the Paris Agreement to ensure “a global temperature rise this century well below 2 degrees Celsius”, normal citizens, industry players, innovators, corporations, mayors and governors have taken independent steps in pledging their commitment to the Paris Agreement.

our atmosphere due to the carbon we emit. And a yet bigger challenge for the industry is to refurbish existing buildings to become more energy efficient and lessen its long foreseeable environmental impacts. It is much easier to design and build new ‘green’ buildings than to push building inhabitants and old building systems to perform more environmentally friendly.

The Convention was ratified by a total of 148 Parties (countries). Climate sceptics think that the planetary system is too vast to be impacted by human beings, and we could not possibly alter the natural elements and natural course of the earth’s ecosystems.

The building industry must push forward to innovating and incorporating holistically clean and renewable energy productions with building systems, and promote more environmental awareness to industry players and inhabitants.

Imagine this: Earth is balanced on top of a slice of ice in a boiling pot, sooner or later the pot will start to boil, and the ice will melt and finally the Earth will drown. We may have yet to alter the natural course of melting point, but we had manipulated the water element by increasing the heat to boil water.

Research and innovation in the building industry in the last decade included the green building rating tools, energy simulation, green and sustainable architecture, and more.

This is a simple explanation for Global Warming, whereby heat is trapped in

However, research has also shown that even with these efforts, buildings cannot achieve the fully ‘green’ potential if the users are not actively engaging and aware of such ‘green’ features.

REAR VIEW

We should recede from our respective national positions and embark on the right pathway towards economic globalization at the right pace. - China’s President Xi Jinping

Letting our capes fly: Why engineers are awesome This glimpse of the future was crafted by: Michelle Doolan

You don’t have to sit a 5-year old down and teach her the physical and psychological benefits of building forts. Chances are she has wrecked your lounge many times before. Written into the defaults of our DNA is the impulse to create ̶ to bring something that never was into being. Take away the plastic weapons of mass destruction from your toy box, and watch your toddler turn his peanut butter sandwich into a gun. Beach sand becomes castles; snow days invite igloos; the world is a wonderful palette that kids just intuitively want to paint on. Essentially, the engineer is hidden inside all of us. The question for us engineers who still hold the title is, are we still living like one? Because we may need to be reminded from time to time, the job of an engineer is a great one. By comparison to some of the other professions, engineering is often not seen as the “cool” one. TV shows like LA Law and Boston Legal glamorise legal eagles battling it out in high profile court cases. ER, House and Scrubs bring the world of medicine into our living rooms. Even Grand Designs puts architecture on a pedestal. Isn’t it about time that TV producers got in touch with the profession that is shaping the future world we live in like no other? As a discipline, it lies at the very fabric of our society, shouldering the systems and spaces that give our world its meaning. Too often the profession is associated with hard hats and tool belts, viewed as difficult and esoteric. But in reality, engineering is a far cry from ‘restrictive’ and ‘routine’. It is alive and multidimensional, unleashing the power of connected societies to unlock the impossible. Engineering invades every domain and asks the question, ‘how can we make this space into something fantastic?’ To be an engineer is to be nothing less than the shapers and problem solvers of our collective future. We get to do this Confucius said, “Choose a job you love, and you will never have to work a day in your life.” In spite of the many challenges and demands, the job of a passionate engineer should often feel like play. Edges are invitations; and we, of all people, should welcome the thrill of stepping off the ledges of previous paradigms to see what new support systems open up beneath us.

Every day, we get to blend new technologies into the world around us. Big data helps us gain new insight into people’s needs, which in turn fuels new design that facilitates healthy and sustainable workflows and social interactions.

This is not a time for false humility; it’s a time to let our capes fly. All the more, we are called to create new virtual reality visions of the future, which anticipate the ‘what if’s’ and puts the unknowns at ease. We get to reimagine energy as we know it and tinker with a thousand unimaginable ways to address some of the single-most important issues of our day. If we are going to remain agile and imaginative in our approach to urban co-creation and problem solving, then engineering needs to stay fun and occasionally open to failure. If we subscribe to methodologies that resist change and reward bottom line only, we will dangerously stay too neatly within the lines. We pen the story Whether it be a mass transit system, a power system, a water network or a building, engineers are asking the question, ‘how will this infrastructure be relevant in the future?’ We have the privilege to keep reshaping life into systems and spaces that breed more life. Every day we are faced with the opportunity to look at issues through new lenses and improve upon historic archetypes.

them wider to the benefit of society. Game changers such as Mark Zuckerberg have altered the stakes of social engagement worldwide through Facebook’s far-reaching and immediate ability to connect people around the world. IDEO is pioneering concepts around people at the centre of design and economies of circular value. And because they have a sobering understanding of the responsibility which goes hand-in-hand with crafting community, they don’t easily back down. Zuckerberg has used his unique position to pledge 99% of his lifetime Facebook shares (worth about $45 billion) to “advance human potential and promote equality in areas such as health, education, scientific research and energy”. As “impatient optimists working to reduce inequity”, the Gates Foundation has so far given away $35 billion to ‘take on the really tough problems’ of hunger, disease and poverty. At their core, engineers are pioneers who create platforms to propel humanity upward and onward. We can create it! Engineering is a constant exercise in diagnosis and treatment. We identify the pain points of society; we prescribe the remedies; and then we even get to deliver the solutions ourselves. Every day the hand of the engineer provides enormous benefit to communities ̶ whether that be in the form of a surgeon performing groundbreaking fibre optic treatment, or something as commonplace these

days as an overseas S k y p e call using broadband or fibre network. Biomedical engineers are developing artificial hearts and giving amputees a new spring in their step. And leaders of science, technology and innovation are carrying the keys to unlocking poverty alleviation and meeting the basic human needs of adequate food, clean drinking water, sanitation, good health provision, shelter and education. Through tight collaboration with government, business leaders, academic institutions and the public at large, we can lead true change by painting wide-stroke solutions over societal problems. We carry cutting edge solutions and skills that embed the systems and smart technologies carving out our future urban ecosystems. It’s to everyone’s detriment when we fail to step up and lead. The ERA Foundation encourages engineers “to be proud to leave their mark… to shake off their ‘behind the scenes’ identities and become ambassadors that talk proudly about the full range of work and sectors they are involved in.” This is not a time for false humility; it’s a time to let our capes fly. Engineering is far more than a job. It’s a way of seeing the world and believing we can improve upon it. The degree to which we own our superhero status in the collective story is the degree to which we all win.

Take the example of Elon Musk, whose invention of the Tesla electric car presents itself like a lifeline to the sinking ship we call today’s fossil fuel-dependent automotive industry. His passion to reduce global warming has pushed open major doors in solar energy and cracked the ceiling of our paradigms ̶ even to include outer space. Thanks to Musk’s SpaceX program, some of us are now googling how to grow vegetables on Mars. Good engineers steward safe boundaries. Great engineers push

www.nzmanufacturer.co.nz

NZ Manufacturer July 2017

Manufacturers focused on

SUCCESS Join with...