NZ Manufacturer June 2023

Is your network ready for digital transformation?

www.nzmanufacturer.co.nz

CIRCULAR ECONOMY Sustainability and productivity: happy bedfellows.

For every industry from aerospace to toy making

Kayasand

receives backing from NZGIF to reduce

Kayasand, a distributor of premium sand manufacturing technology, is opening its first V7 high-technology manufacturing demonstration plant in New Zealand, which uses waste products such as recycled glass, concrete and slag, and turns them into premium sand for concrete.

Kayasand has received the backing of New Zealand Green Investment Finance (NZGIF) via a $3.5 million equity investment. The green investment bank was established to accelerate investment that helps reduce greenhouse gas emissions. A further $1.8 million of private investment has been secured alongside the NZGIF investment bringing the total raise to $5.3 million.

Natural sand supplies are becoming harder to access and traditional concrete manufacturing processes, including the impacts of sand dredging on coastlines such as Pakiri, 100km north of Auckland, are not sustainable over the longer-term.

Dr Bram Smith, Kayasand General Manager, says “Our technology can reduce or in cases eliminates the need

Don’t delay, contact us now.

enquiries@baycad.biz www.baycad.biz

NZ 0274847464 AU 64274847464

Aust/NZ Region

DEPARTMENTS

LEAD

Kayasand receives backing from NZGIF to reduce carbon emissions from concrete.

BUSINESS NEWS

Matahio Energy completes acquisition of onshore assets in Taranaki.

Three signs you’ve hit the entrepreneurial ceiling and how to fix them.

Envi finalists announced.

ANALYSIS

Productivity Training: The Missing Link.

SMART MANUFACTURING

Is your network ready for industrial digital transformation?

Tech from wine industry adapted to save lives.

Australian ‘Uber for Drones’ launches in NZ.

COMPANY PROFILE

Empower Software celebrates 21 years in business.

SMART MANUFACTURING

Electronics manufacturers adopt generative AI and Omniverse to digitalise state-of-the-art factories.

Additively manufactured industrial robot grippers.

Propelling Smart Manufacturing to the next frontier with AI.

AI

How to keep AI developing without compromising safety and security.

The maturity roadmap in the AI journey.

CONSTRUCTION BRIEF

Beca uses 3D design and a collaborative environment on Takitimu North Link.

WOMEN IN BUSINESS

Marina Rajic, CEO BioViros.

DEVELOPMENTS

First fully automated logistics 3PL warehouse online by late-2023.

ANALYSIS

Reducing your carbon footprint with heat exchangers.

WORKSHOP TOOLS

Kemppi launches new welding machine. Strong and soft holds better.

DTS taking the heat out of running cool.

CIRCULAR ECONOMY

Using single-use packaging in your business. Sustainability and productivity: happy bedfellows.

DEVELOPMENTS

Learner support a lifeline for mature apprentice.

AI helps the impossible become possible.

THE LAST WORD

Dr. Bram Smith, GM, Kayasand.

ADVISORS

Kirk Hope

Is Chief Executive of BusinessNZ, New Zealand’s largest business advocacy body He has held a range of senior positions at Westpac and is a barrister and solicitor

Ian is a Partner, Argon & Co. NZ, a master black belt improvement specialist and global lean practitioner. He is passionate about improving productivity and helping to create world class New Zealand businesses.

CEO thinkstep-anz

Barbara’s passion is to enable organisations to succeed sustainably. She describes her job as a ‘translator’ – translating sustainability into language that businesses can act on.

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.

EMA chief executive Brett O’Riley has a background in technology and economic development. Brett actually grew up with manufacturing, in the family business, Biggins & Co. He currently holds board roles with Wine Grenade and Dotterel Technologies and is also on the NZ Film Commission board.

Insa’s career has been in the public and private sectors, leading change management within the energy, decarbonisation, and sustainability space. Insa holds a Chemical and Biomolecular BE (Hons) from Sydney University. She is a member of the Bioenergy Association of NZ and has a strong passion for humanitarian engineering, working with the likes of Engineers Without Boarders Australia.

Insa is a member of Carbon and Energy Professionals NZ, been an ambassador for Engineering NZ's Wonder Project igniting STEM in Kiwi kids and Engineers Australia Women in Engineering, increasing female participation in engineering.

Brett O’Riley

Ian Walsh

Lewis oodward

Insa Errey

Dr Barbara Nebel

PUBLISHER

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CONTRIBUTORS

Holly Green, EMA, Business East Tamaki, Ian Walsh, Dr. Barbara Nebel, Matt Hale, Chris Green, Leonard Lee, Christina Montgomery, Francesca Rossi, Rob Veal, Natalie Martin, Bram Smith

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NZ Manufacturer

ISSN 1179-4992

Vol.14 No.5 June 2023

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.

Who is exporting?

A mere 30 New Zealand companies, according to the Productivity Commission, account for over half of all exports. They say focus really needs to be on innovation and moving away from volume to value-added products.

So, what are overseas trade visits for? Do business legations need to be vetted to determine that the ‘fact finding trip’ is not just an overseas holiday? Do they bring back business for the country?

How much money has government invested over the years in trade visits that result in absolutely no return?

Dairy is New Zealand’s biggest export earner – worth about $19 billion a year.

The largest increase for the year ended December 2022 was for milk powder, butter, and cheese. This is New Zealand’s largest export commodity group, making up 28 percent of total exports over the year. This industry group, with a proven track record, doesn’t need to justify the trip; they have established markets and maintain them very well.

To get more than 30 companies contributing to our export success, we need to increase productivity which needs: a positive attitude and involvement of management; proactive employees; good working conditions; tools and equipment available to raise productivity and the availability of input supplies.

The four determinants of a nation’s productivity are physical capital, technology, human capital, and natural resources. Technology is a decisive factor in productivity, along with physical capital (equipment used to produce products), human capital (the knowledge of laborers), and natural resources.

Now all of this sounds logical but obviously is not being put into practice(properly) if only 30 companies generate most of our export revenue. What are the restraints?

At present, the shining light for export growth appears to be the gaming industry. What is everyone else doing?

We are in a constant state of ‘fixing things’ or ‘trying to fix things’ which costs the country a lot of money for not a lot of return. Let’s give the 30 companies a hand!

Matahio Energy completes acquisition of onshore assets in Taranaki

Matahio Energy has completed the acquisition of a portfolio of six onshore oil and gas licenses in the Taranaki Basin, NZ. Matahio will be the operator of these licenses, holding 100% participating interest in four licenses, and 70% interest in the remaining two licenses. Of the six licenses, three are currently producing. The sale and purchase agreement between the parties was signed in March 2022. All required approvals for the relevant New Zealand regulatory authorities have been obtained to complete this transaction

Key highlights of the transaction:

- Operatorship of two fields, namely Cheal and Sidewinder, which are currently producing a total of 1.4 Kboepd (thousand barrels of oil equivalent per day), net to Matahio. Cheal and Sidewinder are well-established, prolific fields, which have produced over 5 MM bbls (million barrels of oil) to date, since the first oil in 2008.

- Matahio is adding 2 MM boe (million barrels of oil equivalent) 2P reserves (Net, effective date 1st January 2023). At prevailing oil prices and contemporary OPEX rates, the Cheal and Sidewinder fields are expected to generate positive cash flow until 2030. The New Zealand business’s EBITDA for the calendar year 2022 was NZD$29 MM

- The transaction also includes full technical and operational teams, based in New Plymouth, who have a track record in delivering strong health, safety & environment (HSE) and production performance. Most notably, recent production optimisation efforts have resulted in production rates returning to 2015 levels without drilling any new wells.

- Matahio has crafted a multi-year development programme consisting of infill and step-out drilling as well as the appraisal of newer fields in the Puka license (which was 100% acquired by Matahio) to be tied back to existing operated infrastructure. This organic growth programme targets an additional 3.8 MM boe and, if successful, will ensure more than 100% replacement of reserves across Matahio’s portfolio. Coincident with this transaction, the first Cheal infill well as part of this programme is currently being completed.

- Matahio has constructed a bottom-up greenhouse gas reduction plan that projects the New Zealand business to be “net-zero” by 2030. A significant component of this plan is a deep decarbonization of the operation, for which a number of projects have been initiated in 2023, targeting an immediate impact on Matahio New Zealand’s carbon footprint.

- Under Matahio ownership, cash contributions will continue to be made to an escrow fund that ultimately

covers future abandonment liabilities.

- Matahio Energy New Zealand has already committed to several Taranaki partnerships and sponsorships. This transaction now opens the door to other opportunities to collaborate with the Taranaki community.

The CEO of Matahio Energy, an independent energy company establishing a presence across Southeast Asia and Australasia, is Dr Wai-Lid Wong. The company is founded and led by a dynamic team of experienced professionals, whose resilience is borne out of successfully steering other oil and gas companies through unique challenges.

Matahio Energy is the 78.8% owner and operator of the Galoc Joint field, situated 60km offshore Palawan, Republic of the Philippines, and 100% owner of the FPSO Intrepid Balanghai, which is currently stationed on the Galoc field.

Matahio owns and operates a portfolio of onshore assets in Taranaki.

Creating opportunities for networking, learning, and engaging.

Business East Tāmaki (formerly the Greater East Tāmaki Business Association) is here to make it easier to do business; working alongside business leaders and property owners in the region on security, advocacy, development and growth.

Three signs you’ve hit the entrepreneurial ceiling and how to fix them

- Chris Green, author of Business By Design

It’s reported that approximately four out of five small businesses fail in the first five years. Yet these numbers do not necessarily add up when you look at census data across the world.

In the US, for example, the United States Census Bureau says that in 2020 there was 8,000,178 establishments of which 2,179, 893 (or 27%), had over 10 employees. These business numbers remained relatively stagnant between 2019 and 2020 during Covid. Yet establishments with less than 10 employees grew by an astounding 44,445.

Similarly, in the UK the Office for National Statistics revealed 38% of businesses between 2016 and 2020 survived. However, if you look at the size of the businesses, particularly those with more than 10 employees, then between 2020 and 2021 alone, the number of businesses grew by 5,425.

Finally according to the Australian Bureau of Statistics, of the 305,085 businesses that exited in the 2022 financial year, 298,831 turned over less than AU$2 million and 83% of these turned over less than AU$200,000. So if your business turns over more than AU$200,000, you have an 83% chance of survival year to year. If your revenue exceeds AU$2,000,000 per annum, you have a 98% chance of survival year on year.

What is consistent between the US, UK and Australia is that when businesses hit a certain size, the likelihood of exits declines dramatically. The Australian and UK data in particular show the majority of exits happen in the high-risk start-up phase of business, but once the business is established, growth increases significantly.

That means the odds of small business survival are actually pretty good, if you can crack the numbers. To do that, we need to look at why many businesses hit what is called the entrepreneurial ceiling after the initial high-growth period of time. This imaginary ceiling blocks the path to success and sentences a business owner to chaotic activity and overwhelm. So what do we look out for and how do we crack the ceiling for long-term viability and success?

Action with no strategy

As demand increases, a business moves into a high growth phase, characterised by saying yes to a lot of customers. While at first this seems great – your product

or service is in high demand – SMEs struggle to balance supply and demand and hit capacity where they become reactive to customers, staff and suppliers.

American professor Richard P Rumelt, talks about the concept of strategy being a means to “overcome difficulty and point organisational resources towards a specific direction”, instead of being busy doing a lot of “stuff”.

Now is the time to deeply consider the strategic direction of your business, and align your purpose with your actions. Why are you doing this and how does it truly contribute to achieving the business’s strategic goal?

Questioning your activities through the lens of your purpose will take you off autopilot and stop you defaulting to doing what you have always done the way you have always done it. If executed consistently, this direction by design, rather than by default, will lead to better outcomes.

Business reliant on you, instead of your team

Creating a scalable business means having no individual elements of the business totally dependent on one person. You must let go of the fear of the unknown and work towards making yourself redundant from your business (seriously).

This requires you rethink the organisational structure of your business, align it with your strategic direction and invest in the right team to help you get there.

A balanced team, with the capability to achieve the aspiration of the business, well-defined career paths for individuals, and the internal capability to meet client demands, has many of the resources needed to break through the entrepreneurial ceiling.

Get these elements of rethinking and growing your team right, and you will accelerate your business and personal growth, have confidence in your direction, stimulate a great team and create a wonderful business that people will want to be part of.

ENVI FINALISTS ANNOUNCED

Working harder, not smarter

When you’re running a small business, there never seems to have enough hours in the day, or days in the week. It’s endless, it’s relentless and it’s often not what you envisaged when you created or purchased your business. In our efforts, to keep things going, it’s easy to become too busy to lead, and give more and more of yourself to make things work, instead of looking at ways to systemise and optimise the productivity of the business overall.

You need to create a culture that embraces identifying and addressing operational issues and challenges. Having mechanisms to bring issues to light and a systems-based solution to resolve them will provide a continuous-improvement environment. This allows you to put appropriate systems and rules in place to prevent the issue from happening again, and continue to evolve your business systems.

Remember, you can afford to be brave as an SME, as the odds are actually stacked in your favour.

Chris Green, author of Business By Design, is an business strategist, author, mentor and facilitator with more than twenty years’ experience helping regional businesses. Having owned and operated a number of businesses himself, Chris understand the challenges and through his Business by Design Program he provides SMEs the support needed to transform and grow successfully. Find out more at https://www.chrisgreen.au/

As a profession, engineering employs about 3 percent of New Zealand’s workforce and is worth up to $18 billion to its economy. The ENVI awards are open to any individual or team who has made a meaningful contribution to the engineering profession in ways that have a significant impact on Aotearoa.

The awards are spread across nine categories. The winner of each will be announced at a ceremony on Friday 28 July and will also be in the running for the Supreme Award, announced at the end of the night.

“I congratulate all the finalists – just getting to this point is a huge achievement and a testament to your hard work and skill,” Templer says.

CATEGORIES AND FINALISTS

Student Engineer Award

• Eric Song, University of Canterbury

• Ashley Gutteridge, University of Canterbury

• Taine Whare, University of Waikato

Young Engineer Award

• Kishan Seger, Beca

• Michelle Meaclem, Tonkin + Taylor

• William Silcock, Fulton Hogan

Engineering Leadership Award

• Phillipa O’Shea, Downer

• Jamie Roverts, AECOM

• Matthew Loach, Fulton Hogan.

Engineering Innovation Award (Products)

• Konos, Dotterel Technologies

• BTune, Beca

Engineering Innovation Award (Projects)

• 48-day SH6 Remediation Project, Fulton Hogan

• Willoughby Tower Deconstruction, Kordia

Engineering Diversity Award

• StandOut LGBTQIA+ Inclusive Workplace, Downer

• Height Project Management, Height

• Equity, Diversity and Inclusion Strategy, Aecom

Engineering Impact Award

Every two years, Engineering New Zealand Te Ao Rangahau celebrates engineering vision with the ENVI awards – and this year’s finalists have just been announced. Chief Executive Dr Richard Templer says, “Engineering helps address some of the world’s most confronting challenges. I’m proud Engineering New Zealand celebrates this with our ENVI awards, which encourage kiwis to innovate – to look for creative solutions to problems and bring them to life through technical brilliance.”

• Height Project Management, Height

• Climate Resilience Programme – Broader Outcomes, Greater Wellington

• Hamilton Southern Links – Little Things Matter: Homes for Bats, Hamilton City Council

Engineering Education Award

• ENG ME!, University of Canterbury

• Graduate Programme Pathway Evolution, Downer

• Kerry Lee, University of Auckland

• Smart Seeds, GHD

Engineering Partnership Award

• SH2 Waihī to mokoroa (W20), Beca

• Te Tupu Ng tahi Programme of Work, Te Tupu Ng tahi (Supporting Growth) Alliance: Waka Kotahi, Auckland Transport, AECOM, Beca, Bell Gully and Buddle Findlay

The odds of small business survival are actually pretty good, if you can crack the numbers.

Productivity Training: The Missing Link?

-Ian Walsh, Argon and Co

As I have raised previously there are a number of elements required to achieve a productive economy and the benefits that affords us as a country. These include:

• Collaboration between business, government, and educational institutions

• Access to best practice knowledge

• Access to funding to support trial and learning

• Examples, beachheads and benchmarks

For those business leaders contemplating adopting best practises to transform their performance, there are a few key questions to answer:

• What is involved?

• Who else has done this?

• What does it cost in terms of dollars, resources?

• What can be achieved, and is it worth it?

• How long will it take?

On the face of it these questions might appear to be simple enough, however the ways in which to answer them accurately, and to then use those answers to develop a plan for productivity improvement, are complex and highly specialised.

For context, the body of knowledge around applying best practice to business is over 100 years’ worth of industry experience and learnings. Yet I still meet business owners who decide to give it a go themselves in true NZ style, only to waste years and countless dollars going down blind alleys, learning what is already known, through a process of self-inflicted trial and error.

The roadmap to world class will vary depending on the business, process type, size, and structure. Not everyone has an assembly process like Toyota, but some elements might be applicable.

The key to navigating your way through the task of developing a roadmap for your organisation is to engage an expert to help you. By doing so you are making the most diligent use of resources and giving yourself the best chance of success.

You wouldn’t attempt to climb Everest without a guide, someone experienced, who knows the terrain and has successfully helped many others to the top.

Why would you waste your time and money, or expose yourself to unnecessary risk?

Choose an expert who knows your industry, understands your processes, and has a track record of helping companies achieve world class performance.

Once you have a roadmap you can break down what is required into bite sized chunks, inevitably it will include learning new skills, developing leaders and competency, and staying the course.

For these things you will need a mentor to guide and train your teams and support the development of competency.

Our government supports this process through lean funding via the Callaghan Institute, offering assistance to help business adopt best practice through co-funding agreements. This has been an effective program in getting a number of businesses off the starting grid.

Until last year there was also funding available via TTAF (targeted training and apprenticeship fund) funding through TEC (Tertiary Education Commission). Unfortunately, this has now been discontinued.

There is fees-free funding for some relevant courses but the eligibility criteria eliminates anyone who has done any tertiary education previously, so the managers who need upskilling typically are not eligible. This is disappointing and I would suggest this needs a serious review from government.

As a comparison the UK has invested heavily in a ground-breaking government scheme to boost the productivity and future growth of the country’s business community. The management scheme offers business leaders 50 hours of leadership and management training across 12 weeks, backed by £220 million of government funding, which covers 90% of the costs involved.

The scheme offers development opportunities for leaders and their staff, boosting productivity and growing their companies which can lead to more high-skill, high-wage jobs. This is part of the UK government’s commitment to grow their economy to address the cost of living crisis, and level-up opportunities across the country. Alongside this they are supporting businesses by cutting fuel duty and raising the Employment Allowance. Businesses with 10 or more employees will be eligible to have up to 2 participants join the scheme.

The availability of courses/learning opportunities is the next hurdle, and again while we have some courses in some areas, a quick google search on industrial engineering NZ, versus industrial engineering USA reveals the extent of the difference.

We are clearly not as focussed on delivering high quality industrial engineering candidates to business as many countries overseas with whom we compete.

While we do not have all the elements in place, this is not a reason to wait, we can’t afford to sit back and watch the overseas competition eat our lunch. It just means we are making the journey harder than it needs be. We must work to align our objectives, remove the barriers to adoption of best practices from businesses striving to improve performance, and in turn enhance all our outcomes.

As I noted above; government, business, and educational institutions must work together, the time is now.

ADVISORS

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.

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.

Sean O’Sullivan Has a B Com (Hons) Otago University. In 2000 - 2001 introduced PCs on the workshop floor and job and staff tracking and a productivity software App to Fletcher Aluminium Group and 100 manufacturers NZ nationwide.

In 2001 – 2022 Founding Director Empower Workshop Productivity & Scheduling Software App. 236 manufacturing and engineering clients mainly throughout NZ and Australia, also UK and US.

Iain Hosie

Iain Hosie is a respected figure in the NZ Advanced Manufacturing and Materials sectors, with extensive experience in product development, research projects and commercializing tech products. Iain is a Director and Founder of Nanolayr Ltd, Director for the NZ Institute for Minerals and Materials Research, Commercial Director for Fabribotics Ltd, and Executive Council of BiotechNZ.

Is your network ready for industrial digital transformation?

The Internet of Things (IoT), the cloud, and artificial intelligence (AI) are the most popular and most common referenced industrial digital transformation technologies.

Thanks to these technological advances, preventive maintenance, production optimization, defective rates reduction, energy savings, carbon reduction, etc. are easily achieved. Supporting these technologies, however, requires a secure foundation that continuously deliver reliable operational (OT) data. Simply put, reliable industrial networking.

Evolving OT Networks

Industrial digital transformation continuously adds value to OT data, changing it both qualitatively and quantitatively. Alongside these core changes, industrial networking technology has also begun to evolve.

In the beginning, most machines on factory floors were stand-alone operations, and OT data was mostly used to monitor and control the operation of specific equipment. Most of the data was confined to the devices in which they were generated and only transmitted through simple serial-based communication structures. However, as the need for automated systems arose, factories connected a variety of machines to communicate with each other. Two trends emerged: the amount of transmitted data increase tremendously and communication moved from a simple serial-based communication structure to a more complex one that integrated regional Ethernet.

Industry 4.0 Era, a.k.a. the industrial digital transformation era, made it possible for customers to optimize the operation of their machines and move beyond the mere monitoring of them.

One significant outcome is OT data’s new status as a building block of industrial digital transformation. To achieve the required levels of optimization, OT data needs to be transmitted to IT systems or the cloud for further analysis. So, we can no longer confine OT data to the devices that generate it. These developments have set in motion three significant transformations in industrial networking:

From Intranet to the Internet: Breaking the Confines

To allow OT data to flow smoothly between OT and IT networks or the cloud, the silos that once served as a protection within internal networks can no longer exist. Also, as OT systems increasingly get connected to the Internet, the focus needs to shift from securing the physical fields to securing OT data, namely data security and OT network security.

Just controlling inherent physical security risks, such as limiting physical access to the OT fields or prohibiting the use of personal USBs and laptops on-site, is no longer enough. For instance, when connecting trackside PLCs to a central control center, it is important to ensure that up-to-date anti-viral software protects the PLCs. Without such protection, PLCs can pose as a serious security risk to a system’s internal network. Therefore, cybersecurity needs to be a major focal point during deployment.

From Segregated to Integrated: Cross-generational Connections

As we require devices to become more interactive than reactive, subsystems that once worked independently must now work together. This systematic shift means the industrial networking technologies built in different eras will have to integrate with each other and form a new network.

Subsequently, these developments create new management challenges that only a comprehensive visualization of the network can resolve. For example, as a client in the intelligent transportation system industry recently found out, their system became too complex to navigate once the entire network was linked. So, instead of saving on labour as projected, an additional 67% of their workforce was needed just to identify a disconnected link in the vast network. Hence, highlighting the need for industrial network management.

OT vs. IT: Eroding the Age-old Separation

For a more detailed analysis, more data, such as equipment status, images, and video feeds, is now required from OT networks, not just the standard control data it used to transmit. Take mining, for example, where remote intelligent operation systems need to identify risks timely to miners should they head into a dangerous zone.

These systems can achieve this by collecting real-time information, such as live footage of the deployed automatic mining machines and the underground mining conditions, as well as live data, such as air quality, toxic gas extractions, etc..

However, both OT and IT data need to run on the same network, which could crowd the bandwidth. Such data traffic jams delay delivering crucial control data elsewhere in the system, resulting in interruptions in the production. Hence, ensuring an ever-evolving intelligent system while maintaining firm control on the deployed devices is critical.

As Your OT Network Is Evolving, Shouldn’t Your Management Style as Well?

We know now how important evolving OT networks are because any major snafu could damage production and risk personnel’s safety. Thus, learning to manage industrial networking effectively is a prerequisite for entering this realm. However, in most instances, only the data shown on monitoring systems (for example, SCADA) and terminal equipment is managed, while data generated by communication equipment between monitoring systems and field devices, or the ones between the devices themselves, is often overlooked. This could have catastrophic consequences if a disconnection occurs. Therefore, effectively elevating one’s OT network management capabilities is not just crucial but critical. To learn about more hands-on experiences in the OT field, listen to our OT Data Next Podcast.

Article from Moxa Inc www.moxa.com , and Acelink www.acelink.co.nz the representative of Moxa in the NZ market.

Tech from wine industry adapted to save lives

Kiwi researchers are developing a device they hope will prevent deaths from surgical complications. Technology from the wine industry is being adapted for use in a medical device that has potential to save hundreds of thousands of lives per year.

Postoperative complications are the chief cause of death around surgery and, of these, 1.5 million deaths per year could be prevented if they were picked up and treated earlier.

Professor John Windsor at Waipapa Taumata Rau, University of Auckland, hopes a device his team are developing will provide an affordable solution.

“The technology itself has its roots in the electrochemistry we learnt at school – putting electrodes into solutions and measuring currents. It’s used in the wine industry to determine whether the wine has gone off and in animal husbandry to look at viability of sperm in donor animals,” says Professor Windsor, director of the University’s Surgical and Translational Research Centre (STaR).

“What we have done is to take that technology and apply it to surgical patients. We have found in pilot clinical studies that we can accurately measure oxidative stress, which is a common feature of many diseases,” Professor Windsor says.

“What we’ve developed is a device which allows us to measure oxidative stress in two minutes at the

bedside. This means we can measure it multiple times and determine the trend in the patient’s oxidative stress over time.

“We are excited because it’s quick, cheap and easy to use.”

“At the moment, if you have just had an operation, we will measure your blood pressure, pulse, respiratory rate and oxygenation. All of those things are important, but they do not tell you what’s happening at the cellular level.

“As most people know, the mitochondria are the parts of cells which make energy, ATP. Without energy, you can’t do anything, can’t recover, can’t heal, can’t fight infection.

“So, mitochondrial dysfunction is a feature of disease and post-operative complications. This technology gives us a measure of what’s happening at the mitochondrial level to give us new insight into a patient’s recovery.”

The funding will give the researchers an opportunity to refine the technology for use in clinical settings, and then it will be tested in hospitals around the world, especially in resource-constrained hospitals. Professor Windsor and his colleagues hope the device will become as common as a blood-pressure cuff or a pulse oximeter.

“Taking something from the wine industry and retooling it for medical use is a great example of translational research.”

The project has just received a share of $50 million funding from Wellcome Leap, which is going to 13 groups working to improve the safety of surgery.

“It is very prestigious to get this funding, which goes towards disruptive innovations to solve global problems,” says Professor Windsor.

More than five billion people do not have access to safe surgery, according to the World Health Organisation.

Wellcome Leap’s funding has the goal of reducing postoperative complications and mortality by 50 percent through quicker and more effective detection and treatment.

Australian ‘Uber for Drones’ launches in NZ

Australian drone technology startup Aerologix in taking its first step towards international operations, has launched its platform in New Zealand.

Pilots are invited to register on the Aerologix web or mobile app, available on iOS and Android, which will allow them to work on an array of aerial capture projects, including high-quality aerial footage and photos for social events, event and marketing requirements.

As well as enterprise solutions such as asset inspections and technical imaging requirements; digital twins, terrain mapping and photogrammetry.

Aerologix was founded by former Qantas pilot Tom Caska and IT expert Rakesh Routhu in 2019 after they met while studying their MBAs. In a few years, Aerologix has grown rapidly from having a few

hundred pilots on its platform to now having more than 10,000 as well as partnerships established with the likes of Clean Up Australia.

Enterprise jobs vary across a number of industries including surveying, infrastructure, renewables, telecommunications and construction.

Drone photography has quickly become a must-have for businesses, especially those in regions with vast landscapes as well as urban environments, such as New Zealand. Aerologix offers pilots the opportunity to work on a variety of aerial photography projects, allowing them to showcase their skills in a range of sectors.

Rakesh Routhu & Tom Caska, Co-founders, Aerologix.

What is Industry 4.0?

Industry 4.0 refers to the fourth industrial revolution taking place right now. This revolution is driven by the convergence of digital technologies such as the Internet of Things (IoT), robotics, artificial intelligence (AI), augmented and virtual reality, 3D printing and more. Adopting these technologies is enabling manufacturers to enhance their performance, output, monitoring, quality and control on a global scale.

The Industry 4.0 Demonstration Network

The challenge for New Zealand businesses starting out on their Industry 4.0 journey is knowing when, how and what technologies to adopt to improve efficiency, quality, documentation, business intelligence and sustainability.

Where do I start?

This Government initiative enables Kiwi manufacturers to experience Industry 4.0 technologies first-hand via nationwide showcase events, manufacturing site visits, interacting with and learning from industry leaders.

THE FUTURE OF MANUFACTURING IS HERE

THE SMART FACTORY SHOWCASE

The Smart Factory Showcase is a free, interactive session designed to demystify and break down Industry 4.0 with a world leading NZ example. The session will highlight how incorporating smart technologies improves efficiencies, productivity, connectivity, solves common manufacturing issues and streamlines systems and processes. The Showcase provides an ideal introduction to kick-start or progress your own Industry 4.0 journey.

Who should attend

This event is designed for CEO’s, Digital Technology Managers, Operations Managers, Design Engineers and Managers seeking an in-depth understanding of the latest available technologies for businesses. It is a valuable forum to get buy-in from stakeholders and the events are relevant across all sectors. Teams are encouraged to attend together.

What to expect

The Smart Factory Showcase highlights Nautech Electronics’ Auckland facility and what the future of advanced manufacturing looks like – You will be inspired, gain powerful insights to enhance your manufacturing agility and be armed with the knowledge to join the Industry 4.0 revolution.

It can really help by providing concrete examples of how you can actually apply this stuff and get value from it, and network with others to find out what they’re doing to implement Industry 4.0

Mitchell Sanson, Engineering Manager, Hansa Products

Featuring

View all Showcases

Empower Software celebrates 21 years in business Company Profile

Clearly, this technology delivers substantial production gains and substantial financial gains. Empower do not charge for client requested software development and this has fuelled software development, 240 clients - some 720 managers - contributing ideas for improvements over 21 years has made Empower the world class proven software it is today.

Empower Software have pioneered engineers’ and manufacturers’ use of labour productivity software using touch screens on the workshop floor, since commencing business in 2002.

Empower Software is cloud based, an Add On and an App; manufacturing clients interface to their accounting software.

Empower is supplied and supported as SaaS (Software as a Service), low cost monthly fee based. They currently have 240 manufacturing and engineering clients, mainly throughout Australia and New Zealand including US, Canada, UK, South Africa and the Philippines.

There are an estimated 80,000 SME based manufacturing and engineering businesses throughout Australia and New Zealand, of 80,000 businesses an estimated 30% still use manual time sheets “today” for workshop staff to manually record their jobs and times worked on each job.

An estimated 60% do not track their workshop staff time on their jobs at all because manual time sheets produce information that is “too little, too late, too inaccurate and too costly to produce”.

Manual time sheets cost approximately $80 per workshop staff member per week to produce; in comparison the Empower Software App is approximately $15 per staff member per week – so it is an obvious substitution to adopt technology and use the Empower Software App.

Empower Software suits manufacturers and engineers who wish to replace manual time sheets, as well as those manufacturers who wish to commence tracking time on jobs for the first time, using technology.

Lean manufacturing, Digital Manufacturing, Industry 4.0 are all being heavily promoted to Australasian and NZ

manufacturers by government and industry groups as the means to be labour cost competitive and Empower Software “rides that wave”.

Touch screens on the workshop floor and Empower deliver for 90% of manufacturing clients a 20% to 40% reduction in labour times on jobs and 20% to 40% reduction in labour cost on jobs (view https:// www.empowersoftware.co.nz/testimonials-news/ clients-testimonials/joiners-panel-timber/).

A manufacturer or engineer with, for example, 10 workshop staff can achieve 80 hours minimum additional production per week and $6,400 additional revenue per week (at $80 per hour overhead rate), which is $313,000 additional revenue per year. This $313,000 additional revenue per year is largely additional profit because all overhead costs are already incurred in existing production levels. This is $3.13m largely additional profit over 10 years.

Key Milestone achievements over the years:

2004 First Australian client

2012 Rebuilt code to be Cloud based

2014 Developed real time automatic Job Scheduling

2016 Clients commenced installing 60 inch TV screens in their production offices and workshop presenting real time information on Jobs, Tasks, Individual Staff and Job Times

2021 Developed a world class web site including 104 manufacturers and engineers detailed 2 page client case studies – across 37 manufacturing and engineering industry groups

2023 Client base including large number of very progressive industry leading “lighthouse” manufacturing and engineering businesses including: Australia - Rheem Hotwater, New Age Caravans (owned by Walkinshaw Group), Austral Clothes Hoists, Grainline Agricultural, Peppertree Furniture, MARs Transport, Munro Post Drivers. New Zealand - Stabicraft Boats (3 factories), Trailite Campervans, Express Sheet Metal, Donovan Engineers, Carac Engineers, Easy Access, Rata Industries, TMC Trailers to name a few

2023 Partner with and interfaces to accounting software; Xero, Quickbooks, MYOB. Partner with and interface to ERP software: Accredo, MYOB Exo, MYOB Advanced, MYOB Greentree, MS Navision/MS Dynamics, CIN7 and Unleashed

2023 Partner with progressive Enterprise Software reseller implementers including: Production Management Services, Bruntons, Endeavour and Axsys

Sean O’Sullivan (left) and Dave Garrett, founding directors.

Electronics manufacturers adopt generative AI and Omniverse to digitalise state-of-the-art factories

Electronics manufacturers worldwide are advancing their industrial digitalisation efforts using a new, comprehensive reference workflow that combines Nvidia technologies for generative AI, 3D collaboration, simulation and autonomous machines. Supported by an expansive partner network, the workflow helps manufacturers plan, build, operate and optimize their factories with an array of technologies. These include: Omniverse, which connects top computer-aided design apps, as well as APIs and cutting-edge frameworks for generative AI; the Isaac Sim application for simulating and testing robots; and the Metropolis vision AI framework, now enabled for automated optical inspection.

At Computex, Nvidia founder and CEO, Jensen Huang, showcased a demo of an entirely digitalised smart factory — an industry first for electronics makers.

“The world’s largest industries make physical things. Building them digitally first can save enormous costs,” said Huang. “We make it easy for electronics makers to build and operate virtual factories, digitalise their manufacturing and inspection workflows, and greatly improve quality and safety while reducing costly last-minute surprises and delays.”

Foxconn Industrial Internet, a service arm of the world’s largest technology manufacturer, is working with Nvidia Metropolis ecosystem partners to

automate significant portions of its circuit-board quality-assurance inspection points.

Innodisk is deploying Nvidia Metropolis to automate optical inspection processes on its production lines, saving cost and improving production efficiency.

Pegatron, a leading electronics manufacturer and service provider, is using the reference workflow to digitalise its circuit-board factories with simulation, robotics and automated production inspection.

Quanta, a major manufacturer of laptops and other electronic hardware, is using AI robots from its subsidiary Techman Robot to inspect the quality of manufactured products. Techman is leveraging Isaac Sim to simulate, test and optimise its state-of-the-art collaborative robots while using NVIDIA AI and GPUs for inference on the robots themselves.

Wistron, one of the world’s largest suppliers of information and communications products, is tapping Omniverse to build digital twins of its automated receiving lines and operations buildings using inputs from Autodesk AutoCAD, Autodesk Revit and FlexSim. Wistron also uses Metropolis to automate portions of its circuit-board optical inspection using AI-enabled computer vision.

Industrial ecosystem swarms technologies Nvidia is working with several leading manufacturing-tools and service providers to build a full-stack, single

architecture with each at every workflow level. At the systems level, IGX Orin provides an all-in-one edge AI platform, combining industrial-grade hardware with enterprise-level software and support. IGX meets the unique durability and low-power-consumption requirements of edge computing, while delivering the high performance needed for developing and running AI applications. Manufacturer partners ADLINK, Advantech, Aetina, Dedicated Computing, Onyx, Prodrive Technologies and Yuan are developing IGX-powered systems to serve the industrial and medical markets. These systems allow the benefits of digitalisation to be realised during physical production.

At the platform level, Omniverse connects the world’s leading 3D, simulation and generative AI providers. The open development platform, for example, lets teams build interoperability between their favorite applications — such as those from Adobe, Autodesk and Siemens.

A demo in the Computex keynote showcased Omniverse connected to various AI assistants, such as ChatGPT and Blender GPT, to simplify 3D workflows and Python-application development. Nvidia Omniverse Cloud, a platform-as-a-service now available on Microsoft Azure, gives enterprise customers access to the full-stack suite of Omniverse software applications, and OVX infrastructure, with the scale and security of Azure cloud services.

And at the application level, Isaac Sim allows companies to build and optimally deploy AI-based robots. Manufacturers can work with industrial automation company READY Robotics to program their robot tasks in simulation before deploying in the real world. Simulation technology partners like SoftServe and FS Studio shorten development timelines for customers by building digital twin-based simulations.

Also at the application level, Metropolis includes a collection of factory-automation AI workflows that enable industrial solution providers and manufacturers to develop, deploy and manage customised quality-control solutions that save costs and improve production throughput. A large partner ecosystem — including ADLINK, Aetina, Deloitte, Quantiphi and Siemens — is helping to bring these solutions to market.

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Additively manufactured industrial robotic grippers

When we talk about an industrial gripper, we refer to the part of a robot that moves the elements that need to be manipulated in the production process. We increasingly ask robots to perform tasks of little added value or repetitive tasks in production chains, which means that the demand for this technology, considering that its cost is becoming increasingly reduced, increases every year.

According to Research and Markets, in 2022 the market size of robotics was 7.7B$ and an annual growth of 7,2% is expected until 2030 .

This growing demand means that applications are becoming more diverse. From handling boxes in the logistics sector to handling fragile or bulky elements, or in corrosive environments.

Due to all these requirements, the cost of grippers increases depending on these factors. This is where additive manufacturing can greatly help the sector.

3D printing of industrial grippers offers numerous advantages, such as the ability to produce customized parts, reduce costs, and improve efficiency. In addition, additive manufacturing allows for the creation of high-quality parts with great precision and tolerance, as well as the possibility of creating lightweight and durable parts.

The flexibility and speed in the manufacturing of grippers allow companies to adapt to changes in production processes and market needs quickly. In addition, thanks to existing 3D printing technologies such as PBF, BJ, FFF, SLA, etc., it is possible to create part consolidations, single-component mechanisms, internal channels, multi-materials, and an infinity of other qualities that only additive manufacturing and its design freedom can offer us.

In this article, we explain an example of consolidation between an industrial gripper and a gripper completely made through MJF 3D printing in PA12. Currently, industrial grippers are made of moving elements and complex pneumatic or electrical systems or mechanisms. These perform a set of movements necessary for the desired application. Unlike current complex grippers, this 3D printed gripper contains toroids that simulate “lungs” that, when air pressure is applied, perform the desired movement to grip a piece, in this case, an aluminium cube from a machining centre, achieving the desired movement with pneumatic pressure alone. This piece was tested with 500,000 cycles at 4Bar, achieving validation suitable for the automotive sector. It achieves the same technical capabilities

and is also four times cheaper. Because it is a digital element, which can be modified and reprinted, this gripper can be adapted to any shape, hardness, and size. Simply by modifying the design and launching it for manufacturing. Here are the advantages of design for additive manufacturing (DfAM). Today, there is multiple design software that allows us to optimize the topology of parts. In case it is necessary, it would be possible to reduce the weight of the gripper to a minimum, without losing performance in operation.

The possibilities are endless, as many as materials, requirements, sizes, and so on. It is only necessary to consider the application and to study the specific case.

www.3dpmaven.net

Propelling Smart Manufacturing to the next frontier with AI

-Leonard Lee, President APAC, Beyond Limits

However, conventional AI technology that manufacturers still rely on acts as a “black box” that creates models from data without providing any explanations.

For APAC manufacturers, the most pressing challenges in the implementation of Industry 4.0 include the reluctance to embrace new technology, a shortage of skilled personnel to oversee its implementation, as well as difficulties in measuring the ROI of smart manufacturing digital solutions. There is also a sense that competitive differentiators are rising in importance. Manufacturers know they must step up on their digital investment, as those companies with higher digital maturity have shown greater resilience and are better able to adapt to supply chain challenges with increased supply chain visibility.

Providing manufacturers with a competitive advantage

AI has already transformed many enterprise processes, and the use of AI technology is now treated as a business imperative. Manufacturers are exploring ways to effectively utilise their existing data and insights, boost efficiency, reduce expenses, and achieve operational advantages.

To allow manufacturers to reap the full benefits of technology, they must pivot to Cognitive AI. Cognitive AI acts as a “glass box”, providing detailed justifications for its suggestions by illustrating evidence and risks with clear audit trails. Adopting a Cognitive AI solution can provide competitive advantages in process manufacturing, through improving quality, yield, bottleneck identification, financial optimisation, and mitigation strategies. In the area of robotic predictive maintenance, Cognitive AI can also enhance service technician support, streamline maintenance prioritisation, and increase production line uptime.

Reducing resistance to technology adoption

Due to factors such as the rapidly aging workforce in APAC and competition from other industries for top talent, the manufacturing sector faces roadblocks attracting talent with digital expertise. This is compounded by resistance from existing employees to adopt cutting-edge technology such as AI.

This resistance could be attributed to the lack of necessary specialised skills, difficulty in integrating AI with existing systems, or even the fear of technology replacing current employees. In reality,

with Cognitive AI, smart manufacturers and their employees will be equipped with better decision-making capabilities and tools to bridge the gaps from the talent perspective.

As one of the global hubs for manufacturing, Asia Pacific (APAC) accounts for about 48.5% of the worldwide manufacturing output. In the region, opportunities are ripe for smart manufacturing to move to the next level, largely due to the well-developed manufacturing ecosystem and government support. Spending within the artificial intelligence (AI) market is also expected to grow to US$49.2 billion in 2026, with a compound annual growth rate (CAGR) of 24.5% from 2021 to 2026. The increased investments are expected to fuel the growth of automation through the use of technologies such as robotics and control systems, thus enhancing the performance metrics of the production processes.

Through combining the best features of technology and existing human expertise, stakeholders can trust Cognitive AI during the critical decision-making process in high-risk situations. It provides the essential details they need to understand the “why” at every level, and allows humans to trust that their AI solutions can deliver the best results.

AI is the way forward for manufacturers

The adoption of AI for smart manufacturing can require significant upfront investment in technology and training, which may not be feasible for start-ups and SMEs. In Singapore, SMEs cite that the top three barriers to digitalisation are high cost of investment and operations, lack of financing, and lack of skills among staff. These barriers have been consistent since 2017.

Additionally, despite high awareness of government support available to help businesses digitalise, only 50% of SMEs applied in 2022.

How to keep AI developing without compromising safety and security

Christina Montgomery Francesca Rossi

The introduction of generative AI systems into the public domain exposed people all over the world to new technological possibilities, implications, and even consequences many had yet to consider.

Thanks to systems like ChatGPT, just about anyone can now use advanced AI models that are not only capable of detecting patterns, honing data, and making recommendations as earlier versions of AI would, but also moving beyond that to create new content, develop original chat responses, and more.

A turning point for AI

When ethically designed and responsibly brought to market, generative AI capabilities support unprecedented opportunities to benefit business and society. They can help create better customer service and improve healthcare systems and legal services.

They also can support and augment human creativity, expedite scientific discoveries, and mobilise more effective ways to address climate challenges.

We are at a critical inflection point in AI’s development and use and its potential to accelerate human progress. However, this huge potential comes with risks, such as the generation of fake content and harmful text, possible privacy leaks, amplification of bias, and a profound lack of transparency into how these systems operate.

It is critical, therefore, that we question what AI could mean for the future of the workforce, democracy, creativity, and the overall well-being of humans and our planet.

The need for new AI ethics standards

Some tech leaders recently called for a six-month pause in the training of more powerful AI systems to allow for the creation of new ethics standards. While the intentions and motivations of the letter were undoubtedly good, it misses a fundamental point: these systems are within our control today, as are the solutions.

Responsible training, together with an ethics by design approach over the whole AI pipeline, supported by a multi-stakeholder collaboration around AI, can make these systems better, not worse.

AI is an evolving technology.

Therefore, for both the systems in use today and the systems coming online tomorrow, training must be part of a responsible approach to building AI. We don’t need a pause to prioritize responsible AI.

It’s time to get serious about the AI ethics standards and guardrails all of us must continue adopting and refining. IBM, for its part, established one of the industry’s first AI Ethics Boards years ago, along with a company-wide AI ethics framework.

We constantly strive to strengthen and improve this framework by taking stock of the current and future technological landscape –from our position in industry as well as through a multi-stakeholder approach that prioritizes collaboration with others. Our Board provides a responsible and centralized governance structure that sets clear policies and drives accountability throughout the AI lifecycle,but is still nimble and flexible to support IBM’s business needs. This is critical and something we have been doing for both traditional and more advanced AI systems. Because, again, we cannot just focus on the risks of future AI systems and ignore the current ones. Value alignment and AI ethics activities are needed now, and they need to continuously evolve as AI evolves.

Alongside collaboration and oversight, the technical approach to building these systems should also be shaped from the outset by ethical considerations. For example, concerns around AI often stem from a lack of understanding of what happens inside the “black box.”

That is why IBM developed a governance platform that monitors models for fairness and bias, captures the origins of data used, and can ultimately provide a more transparent, explainable and reliable AI management process.

Additionally, IBM’s AI for Enterprises strategy centers on an approach that embeds trust throughout the entire AI lifecycle process. This begins with the creation of the models themselves and extends to the data we train the systems on, and ultimately

the application of these models in specific business application domains, rather than open domains.

All this said – what needs to happen?

First, we urge others across the private sector to put ethics and responsibility at the forefront of their AI agendas. A blanket pause on AI’s training, together with existing trends that seem to be de-prioritising investment in industry AI ethics efforts, will only lead to additional harm and setbacks.

Second, governments should avoid broadly regulating AI at the technology level. Otherwise, we’ll end up with a whack-a-mole approach that hampers beneficial innovation and is not future-proof. We urge lawmakers worldwide to instead adopt smart, precision regulation that applies the strongest regulation control to AI use cases with the highest risk of societal harm.

Finally, there still is not enough transparency around how companies are protecting the privacy of data that interacts with their AI systems.

That’s why we need a consistent, national privacy law in the U.S. An individual’s privacy protections shouldn’t change just because they cross a state line. The focus on AI in our society is a reminder of the old line that with any great power comes great responsibility. Instead of a blanket pause on the development of AI systems, let’s continue to break down barriers to collaboration and work together on advancing responsible AI—from an idea born in a meeting room all the way to its training, development, and deployment in the real world. The stakes are simply too high, and our society deserves nothing less.

In the first of a three-part series, we take an overview of what smart, data-driven manufacturing can do for productivity and profitability.

Knowledge = power

Smart manufacturing—driven by data, machine connectivity, artificial intelligence (AI), and machine learning—is at the heart of the revolution in modern production environments. The rapid rise of the Industrial Internet of Things (IIoT), as it’s also known, is easily as disruptive as the production-line model introduced over a century ago by Henry Ford.

Implementing sensors on machines, and processing control system data enable the gathering of information and the ability to use knowledge gained from that digital information to make continuous improvements to your business’s productivity, safety, and profitability. Gathering a baseline of data is the key step. This enables you to measure and analyze the things that affect performance at a granular level of detail; and to apply the insights from AI to make continuous improvements that will give you an advantage over your competition.

Smart manufacturing enables you, for instance, to:

- simplify, streamline, and future-proof the manufacturing model,

- accelerate decision-making,

- improve productivity, uptime and quality control,

- optimize planning, improve stock management, and reduce waste, overheads, and cost,

- implement predictive maintenance,

- improve safety and operational oversight,

- manage the increasing complexity of products, and

- scale business efficiently and effectively.

Building an operational performance knowledge base and creating real-time information also goes hand in hand with reaping the benefits of a computerized maintenance management system (CMMS), which we’ll look at in the next installment.

Challenging times, smart solutions

In today’s challenging business climate, there are multiple factors driving the need for smart manufacturing. These include a global shortage in skilled labor (particularly in manufacturing), the impact

of international competitive environments, the drive for high quality, low waste, and cost control.

All these can be addressed via the application of intelligence to your production model. Whether it’s streamlining the output of existing products or enabling rapid development to adapt and scale into new markets, you need to be working smarter, not harder. Although automation is well under way across several sectors, a lot of companies aren’t utilizing or even gathering data through technology that’s available at their fingertips to enable smart manufacturing.

As our head of sales and marketing, Rob Veal, explains, “A lot of machines produce data currently that is not even connected to anything outside of their own control systems.

Therefore, that data is not collected and it’s not available for analysis, for presentation, for correlation, or decision-making processes, let alone to build, importantly, a database of machine data that can then train models and inform the AI software when it’s deployed.”

Essentially, businesses that aren’t listening to their machines are working in the dark. They are often in reactive, rather than predictive, mode—always fighting fires—which leads to prolonged downtime, added costs, and reduced productivity.

Making data work for you

IIoT and AI platforms can digest a large amount of data from a wide array of sources and then make sense of it in ways that would be very difficult, if not impossible, for humans to do.

When you gather information from your manufacturing machinery, you can build an overall picture of performance. “By processing machine and sensor data, businesses can start making decisions about performance over time, and identifying areas for improvement,” explains Rob.

“Ultimately the goal is to use AI to fine-tune your operation, to sharpen the axe. Finding another one or two percent of operational efficiency on a regular basis can be the change that makes you the market leader.”

Another example is quality control. In the past, sampling might have been low-level, and the pass/fail decision may have been somewhat subjective. AI now enables you to measure to a high level of detail and accuracy across an entire production seat, significantly improving

accuracy and consistency, while reducing waste.

Making a start

As the proverb goes, “The best time to plant a tree is ten years ago. The next best time is today.” So if you’re new to smart manufacturing, the time to start is now. There couldn’t be a better time, because the technology exists to help you collect and use data profitably—and we are here to assist.

Our knowledge comes from experience. “The reason we invested in this kind of technology in the first place was to improve our own performance in the real world,” explains Rob. “Having worked with industry specialists in each area of discipline, we realized we’d created a product. And because we know how manufacturing businesses are using intelligent production lines today, we can provide solutions that are real and valuable.” Facteon have a lot of experience working with a range of customers, all at different stages of the AI maturity journey. We can advise you on the best options for connectivity, and what data is available from the production assets that you currently have.

We will discuss the type of information you’d like, what insights you need, and how best to deliver the information to different people in your organisation, including how to integrate the data created into other business systems, such as ERP. As a start we could look at retrofitting devices, sensors, or vision equipment that can produce data to guide you.

Steady improvement

AI can bring about major change, which some businesses find challenging at first. You’ll want to know why changes are necessary, or whether they’ll affect your operation. Identifying and agreeing business goals and value early are important to overcome this.

Major (and ongoing) change requires trust, enterprise engagement, and teaming with partners like Facteon. Our aim is to work with you to agree clearly in advance where the value to you lies, and recognise that value as soon as possible, bearing in mind also that it’s a journey and we’re with you all the way.

“This does take some maturation of technology,” explains Rob. “But if we set up the right expectations at the start, there’s a fantastic opportunity to improve and retain your competitive edge. It’s a valuable investment over time.”

The maturity roadmap in the AI journey -Rob Veal, Facteon ANZ

Construction Brief

Beca uses 3D design and a collaborative environment on Takitimu North Link South of Auckland

Beca reduced the time to completion by 15% and and improved design efficiencies by 20%

Designing a road for a growing region

The western Bay of Plenty region is one of the fastest-growing in the country. Growing traffic in the area, with many serious crashes, strained road systems. To improve safety, access, travel options, and to support economic development in the area, Waka Kotahi NZ Transport Agency initiated the Takitimu North Link project.

This 14-kilometre, four-lane corridor and shared path will connect Tauranga and mokoroa, improving safety and easing congestion. The government’s New Zealand Upgrade Programme (NZUP) has provided funding for the first stage of the project, 6.8 kilometres between Tauranga and Te Puna. The Fulton Hogan/HEB joint venture was awarded the design and construct contract, with Beca as their lead design consultant.

Beca’s road design includes various bridges and underpasses, a connection to existing roads, and bypass lanes. The area’s geology is largely volcanic in origin, but subsurface materials vary from fill, alluvial clays, silts and sands, weathered volcanic ashes, and sensitive Matua Subgroup tephras interbedded with ignimbrite.

Groundwater levels are shallow in low-lying floodplains and deepen in the higher-elevation areas. These conditions presented challenges with stability, settlement, excavation, and varying pile foundation conditions.

Determining how to build sustainably

Given the complex conditions, traditional 3D design was not enough to meet the demands of the project. The development area was a very constrained corridor running through productive horticulture and farmland, limiting development options.

As the design teams gathered and incorporated data, project needs and details greatly changed, requiring quick adaptation. Additionally, clear communication and collaboration with construction partners was key to reducing errors and minimising risk.

Beca also wanted to prioritise sustainability and construction efficiency as part of the New Zealand Upgrade Programme. “We are working hard to measure and benchmark a number of sustainable outcomes, including the project’s governance, procurement, carbon reduction, waste, environmental impacts, and, of course, community engagement,” said Ross Brown, technical director, civil, with Beca.

As part of that effort, the company wanted to minimise the impact of development on existing properties as much as possible, even within the constrained footprint. Beca determined they needed an integrated, 3D model-based digital delivery approach, but they soon realised that not all applications could handle the complexity of

the project or provide intuitive interdisciplinary collaboration.

Collaborating for rapid, optimised design

Beca determined they could transition to 3D modelling and digital delivery, as well as meet all project requirements with the help of Bentley applications. The organisation first established an open, connected data environment with ProjectWise, ensuring all information accessed by teams was always up to date and readily available, even during New Zealand’s particularly strict pandemic lockdown. Next, they used Leapfrog from Seequent, The Bentley Subsurface Company, to create 3D models of the ground conditions to inform road and drainage design, earthworks, and structure design, as well as to optimise and model volumes for the mass haul of fill material. With clear knowledge of ground conditions, they determined how to make the most of ground cuts in the volcanic ash layer, as it was the strongest material and could be cut to a steeper slope.

Then, designers used MicroStation, OpenBridge, and OpenRoads to establish a model-based approach for designing road elements. The road team quickly made changes as designers received new requests and determined how to improve the road alignment. At the same time, the bridge design team could keep up with the rapid road changes and adjust the bridge models without adversely affecting their design, as bridge models were linked to the road alignment model.

With the iTwin Platform, they unified all elements into a single digital model accessible by all stakeholders. Lastly, to present their work to the tender evaluation team and keep them informed of any changes, they created an animated presentation with LumenRT to provide an immersive view of the proposed designs.

Option selection during the tender phases needed quick, realistic visualisation so that the designers, constructors, and the client could understand the evolving plan.

Improving efficiency and saving significant costs

By using 3D design and enabling close coordination between teams, Beca reduced the time to completion by 15% and improved the quality of the deliverables. As one example of the benefit of digital collaboration, the drainage team switched from an unconnected third-party application to OpenRoads Designer, enabling them to work together with the team designing the road and incorporate automatic updates, leading to productivity gains of over 15%. Modelling eight of the bridges within OpenBridge resulted in significant savings compared to previously used methods. The streamlined workflows allowed teams to consider more options, which reduced tender costs and improved design efficiencies by 20%.

By optimising the horizontal and vertical alignment of the road in a 3D design environment, Beca was able to completely eliminate the impact of construction on two properties and lower the impact on several others, which will save significant construction time and cost. Having detailed geological insight will allow the construction team to reuse all excavated material, eliminating the need to use heavy equipment to remove material or import fill to the site.

The design will eliminate 22,000 truck movements during construction, equivalent to 900,000 kilometres of travel, lowering carbon emissions by 560 tons. The project is now under construction, and Beca anticipates the more accurate design will greatly reduce the amount of rework needed. Beca is also exploring how their model could be used to support maintenance after construction.

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

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Women in Business

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Tell readers what it is that you do?

At BioViros, we make special tools called viral vectors to help fight cancer. Imagine these as tiny delivery vans. We take a harmless virus, remove its contents, and put in a special package instead.

This package has instructions that can teach our own immune system to recognise and fight cancer. We produce these viral vectors in large quantities so they can be used in cancer treatments.

It’s a bit like running a factory that makes special delivery vans, but these vans are 0.000000001 meters in size, and their cargo is to equip our white blood cells. So far, we have established a laboratory for production in Lower Hutt, and hired key people to do run the process in NZ.

As we expand in 2023, we are prioritising communication with our investors, understanding that their partnership is crucial for the team growth and production scale up to enable production of viral vectors for clinical trials in NZ and beyond.

Where are the opportunities in Bio Tech?

In the last couple of years, we’ve seen a growth of FDA approved drugs for cell and gene therapy. We have decided to dive deeper into this and place our bets on viral vector manufacturing.

I hope to see New Zealand attracting a lot of talent in the field of cell therapy in the very near future. Globally we will also probably see a shift towards personalised medicine, driven by genomics and bioinformatics where precise algorithms can tailor the treatments for individual patients.

Does BioViros have overseas markets?

A large portion of BioViros market will be overseas. We’ve talked to people from Australia, US and will look into Asia as well. Customers are mainly interested in sourcing a high-quality product without the fear of delays, because that would mean patients won’t get the treatment on time.

We can produce that here in New Zealand. While we are still at early stage, the global demand is definitely there.

Most satisfying project undertaken?

BioViros from the start to date, and I believe this will continue to be my most exciting project for a while The shear amount of work that was put into this by so many people is just astonishing. Empowering the team to make decisions and participate in creating a creative and open work environment is my biggest focus.

As a startup founder it is hard working in a small team with a lot of tasks. But when engaged and empowered small teams can achieve a lot. I’ve been blessed with the support along the way, both in business and private life since the beginning of this journey.

The satisfaction comes from a day-to-day progress and the ability to share it with my team.

Are you driven in a calm and mannered way?

I would say this mostly applies to my work life. In my private life I like to be organised, but I also like some chaos and freedom to make things up in the moment. I always like to try new things. It keeps life interesting, and my mind engaged.

Have you travelled much for business?

Relationships and collaborations are the most important part of any business, but travel is a two-sided sword. It can cost a business owner much time and money. I travel as little as possible, but as much as necessary. Today a lot can be achieved in online meetings, and some of the people I feel like we’ve been working

with forever, even though we’ve only seen each other online.

However, some meetings have to be held in person; never underestimate what a face-to-face interaction can deliver.

Is there equity in your workplace?

Yes, we have a percentage of equity allocated for the ESOPs that can be shared with key staff. We want early believers that join us and devote their effort in building a start up to be awarded as we progress. Where do you see technology benefitting business at present?

We work on the very edge of technological development in health sector, so for my team staying in touch with the latest trends in tech is a must. I encourage everyone to unleash their curiosity and play with the tools available to learn how to 10x their performance.

The obvious one that comes to mind is automation and AI. We use it in all areas we can, and this includes working with partners that are focused on AI powered solutions too.

Areas of deep interest?

Apart from work related interests I don’t really have “the one thing” that I like doing most. I try to take opportunities as they come and rather look at what is available and fun to join at the time. Trying to make time for the gym a few times per week and go for daily walks is something I really enjoy. Endorphins after the workout are just unbeatable. Who has inspired you?

I look for traits in people that I wish to adopt, and then try to implement them in my life, rather than focusing on one person. There are a lot of amazing people out there, just look for the best in them.

Favourite book?

Bill Bryson “Neither here, nor there”. You will laugh to tears!

Rolf Dobeli “The art of the good life”. This one I read twice last year.

Favourite quote?

Every day do something for the first time. –Unattributed saying. How do you relax?

Relaxation is a funny one and, again, never the same for me Switching off my brain and focusing on the moment involves turning all devices off for a few hours and going to the gym, or doing something with my hands, like drawing.

This helps me to process things and find solutions for challenges I am struggling with from time to time.

Marina Rajic, CEO BioViros

First fully automated logistics 3PL warehouse online by late-2023

Cardinal, the country’s largest privately-owned third-party logistics (3PL) company, has announced it is developing New Zealand’s first-ever fully automated 3PL warehouse in Drury, believed to be the largest of its type in the Southern Hemisphere.

The innovative new facility is set to improve order processing times by up to 400%. The total infrastructure, property and automation investment will be around $450 million over a five-year period and is part of a wider multi-billion industrial development in Drury.

While speed is important, the core focus of Cardinal’s Drury development is to improve productivity and customer service delivery, lower costs, reduce waste and increase customer confidence in delivery.

Its innovative automation technology will enable the smoothing of peaks in demand, meaning an optimised and lower-cost New Zealand supply-chain for Cardinal partners and for end-consumers, at a time when national supply chain infrastructure struggles with peak volumes.

Cardinal Chief Executive, Brendon Furness, said, “Covid-19 and recent extreme weather events like Cyclone Gabrielle have highlighted the critical importance of New Zealand having more resilient infrastructure. This investment is the first of its kind for New Zealand’s highly competitive logistics industry and will provide more resilience and efficiency at the customer end of supply-chains.

“Automation and robotics in warehouses are now

proven technologies in other markets, however this is the first investment of this scale in automated logistics technology here in New Zealand, and we think the new facility will revolutionise carton warehousing. It will also drive sustainability and waste minimisation, with the use of innovative technology that will have the use of plastic shrink-wrap, and with smarter transport and warehouse utilisation that reduces emissions. The warehouse will also feature solar roof panels, capable of generating 1.4 MGW, enough to power around 220 homes.“

Construction is underway and will feature a central distribution hub filled with high-speed pallet cranes and rapid sorting vehicles, with 115,000 automatic storage and retrieval system (ASRS) pallets. An integrated buffering system with capacity to handle 62,000 cartons provides for automated carton picking on a massive scale.

Automated technology will move products to pallets and into trucks at high speed. This will all be housed in a six-hectare building with a 25-metre ceiling height –one of the tallest warehouses in New Zealand - to allow room for the robotics.

Delivery of the Drury project is broken down into three stages. The first stage will be completed in December 2023 and will deliver 12,000 ASRS pallets. Stage two is due for completion in December 2024 (a further 48,000 ASRS pallets) and stage three in June 2025 (the last 55,000 ASRS pallets) respectively. Another 45,000

projects in Christchurch is already in the pipeline. When operational, an order will be placed into the automated system, robotic cranes will retrieve specific cartons from their location and will, based on their weight, deliver them in the right order to the correct pallet, to be packed and then dispatched. How delivery trucks are packed will be determined by the AI system and will be based on the best route to reach each customer.

Cardinal has partnered with world leading automated material handling solutions provider, Daifuku. Daifuku aims to deliver automation that inspires and will provide all the high-tech machinery and infrastructure to run the warehouse along with a shuttle system capable of moving individual cartons through the warehouse at nearly 200 metres a minute.

This move towards automation is not the first for Cardinal. In 2022, they pioneered the Perfect Pallet program. Using smart technology to weigh products onto pallets and track their accuracy through the delivery process, Cardinal can load multiple customer products on the same pallet.

Reducing your carbon footprint with heat exchangers

By Matt Hale, International Sales & Marketing Director, HRS Heat Exchangers

Energy efficiency represents more than 40% of the emissions abatement needed by 2040, according to the International Energy Agency (IEA) Sustainable Development Scenario1. The IEA says, ‘Energy efficiency is the “first fuel”: reining in the scale of this unprecedented challenge, supporting net zero energy goals at lower costs, and delivering a wide array of benefits for society.’

Furthermore, ‘According to the IEA Efficient World Scenario, currently existing cost-effective technologies are sufficient to double global energy efficiency by 2040.’ Heat exchangers are just such an existing, cost-effective technology. Technologically proven for over a century, developments in materials and design mean that many types of heat exchanger, such as those utilising corrugated tubes and energy recovery, are now more energy efficient than ever before.

The biggest efficiency benefits of heat exchangers come about when they facilitate the reuse of as much of the thermal energy generated or used during a process (such as heating, cooling, pasteurisation, evaporation, etc.) as possible.

Distributing heat more efficiently throughout production facilities has been recognised a key factor in improving efficiency and reducing greenhouse gas (GHG) emissions in industries including as chemical refining, water treatment and manufacturing. Many processes require heat, but not all of them utilise all of it. For example, a process using steam at 100°C or more may result in a hot water stream with a temperature of 80-90°C. In some cases, this will be reheated in a continuous cycle, but in the least efficient situations it may simply be dumped, perhaps requiring cooling before it can be discharged.

Water with this temperature profile has a range of potential uses, including pasteurisation and low temperature evaporation. Rather than continually heat and then dump process hot water, it makes far more sense to reuse it where possible, by transporting it to where else it is needed in the facility.

Examples of heat recovery with heat exchangers

The first typical example can be seen in food

production, if we imagine a product that needs to be pasteurised. The product needs to be heated to the necessary temperature to achieve pasteurisation, then rapidly cooled to maintain shelf life and quality. This is achieved through the use of two heat exchangers. The first uses hot water to raise the temperature, while the second uses chilled water to cool the product down again.

In the second process, the temperature of the cooling water is increased significantly. There are three options for dealing with this heated water: discard or discharge it elsewhere; cool it again for re-use; or cool it again for re-use but use some of the heat it contains towards the heat required for the pasteurisation phase. This third option utilises heat recovery or heat regeneration, reducing the amount of new energy required for the subsequent first heating phases.

A second example shows how heat left over from one process can be recaptured to be used elsewhere. Many anaerobic digestion (AD) plants use heat exchangers to pasteurise the digestate produced during the AD process, so that it can be sold as an agricultural fertiliser.

The ‘surplus’ heat which is generated after the system has been running for two hours is used to preheat the digestate, reducing total heat load and improving overall plant efficiency by increasing the amount of generated energy, which is available for export or other uses, as opposed to being required for pasteurisation.

Finally, combining multiple heat exchanges can often provide the greatest energy benefits, for example, in a multi-effect evaporation system such as the HRS DCS Digestate Concentration System. This uses heat exchangers and evaporation to reduce the volume and increase the concentration of sludges

and digestate.

The first evaporation stage heats liquid digestate and uses a cyclone separator; the steam produced from this first cycle (usually available at 70˚C) is then used as the heating media for the second effect, whereby the process is repeated. The subsequent steam (usually available at 60˚C) is then used as the heating media for the third cycle. The number of effects is determined by the level of dry solids required and the amount of surplus heat available, up to a maximum of four cycles.

After the final stage the steam is condensed back to water and this heat is used to pre-heat the incoming product before the first stage of evaporation. Heat recovery is not limited to systems dealing with liquids. HRS recently supplied a large G Series gas-to-gas heat exchanger to recapture heat from the high temperature exhaust gases leaving a large chemical reactor.

This recovered heat is then used to help pre-heat the chemicals entering the reactor to around 500 °C. As well as helping to improve energy efficiency at the plant, the new unit has been designed to cope with challenging operating conditions in order to provide a suitable working life.

These examples show that where the situation allows, HRS corrugated heat exchangers have significant potential to reduce the energy consumption (and therefore GHG emissions) of thermal processes in a wide range of industries.

The capital costs of including energy recovery in a heat exchanger system is likely to be higher than similar systems without heat recovery, but these will be recovered over the working life of the unit, particularly at today’s high energy prices.

Around the world, private companies and government agencies are looking to reduce the greenhouse gas (GHG) emissions associated with their activities, including increasing their use of renewable and low-carbon energy sources and improving the energy efficiency of their processes.

Heat recovery can be applied to gases as well as liquids.

Workshop tools

Kemppi launches new welding machine

Leading international welding equipment manufacturer, Kemppi, has released the AX MIG Welder – a powerful robotic welder with seamless integration, an easy-to-use interface, and the latest welding technology.

The AX MIG Welder is purpose-built for high-intensity, 24/7 automated welding environments. With 400 or 500 A power and a robotic wire feeder, it is engineered to perform difficult tasks and meet demanding production targets.

Quality welding

The AX MIG Welder has fine-tuned ignition and a precise seam tracking signal to ensure repeatable, high-quality welds. For challenging materials, Kemppi MAX or Wise arc performance welding processes can be used to increase speed, lower heat input, and ensure penetration.

Simple integration

Designed for easy integration, the AX MIG Welder is

compatible with most robot brands and comes with software and hardware components for fast and seamless blending. It lets you start continuous, precision welding in no time.

Easy to use

Featuring an intuitive user interface and simple controls, the AX MIG Welder is easy to use and can be operated with basic welding knowledge. Machine controls and real-time performance data can be accessed with a browser on a laptop or mobile phone – the user interface can also be integrated into an existing control system. Plus, the web browser-based user interface lets the operator adjust machines remotely, saving time while delivering convenience

Modular system

Flexibility is key with the AX MIG Welder, and it can be configured to suit varying applications. This allows users to tailor the robotic welding system to their needs,

Strong and soft holds better

Schmalz combines a particularly soft sealing lip with a flexibly designed bellows, thus conditioning its new PSPF bellows suction cup for automated handling, especially for bags that tend to wrinkle.

When bags made of thin

Looking

film are filled with liquids, they become wrinkled. In order to ensure safe and fast handling, two materials are combined with very different properties in its new bellows suction cup PSPF:

The sealing lip is particularly soft and adaptable, while the bellows is reinforced. Both components are firmly connected to each other and can thus seal optimally and at the same time follow the dynamics of particularly fast packaging processes.

This enables the gripping of liquid, solid or powder-filled pouches and packages with delta robots, in case packers

while implementing a cost-effective solution. With the new Kemppi AX MIG robotic welder, fast integration, easy operation, cutting edge performance and exceptional welding quality are a given.

and pick & place applications - even with a low fill level. The large shaft diameter allows a high flow rate and the 3.5 folds of the bellows easily compensate for height differences, meaning a high holding force and thus - in combination with the sealing lip - a secure hold during fast cycles.

The new PSPF bellows suction cup is made of FDA-compliant silicone and is suitable for contact with food. It is available in 33, 43 and 53 millimetre diameters. For more details contact Treotham Automation www. treotham.co.nz

70% of licence holders say signing on has positively affected sales.

for a marketing edge?

Workshop Tools

DTS taking the heat out of running cool

DTS, a New Zealand manufacturer and innovator of advanced refrigeration technologies, is taking the heat out of running cool. The company, well-known as a manufacturer of stainless-steel vats, is bent on saving refrigeration users from unpleasant surprises in the short- and long-term by breaking the chain of R404A gas use across New Zealand.

R404A is a common refrigerant in New Zealand. This high-pressure blended gas became a stalwart of dairy and commercial applications from 1995 when CFCs were banned for use in new equipment. Nearly 30 years on, R404A is now considered one of the worst refrigerants in the country for greenhouse gas emissions, and its price is soaring.

Luke Walker, DTS National Sales and Service manager, believes many producers are unaware of the specific refrigerant cooling their systems — until a leak occurs.

“Whether it’s farms, vineyards, horticultural operations, breweries, or butcheries, exactly which refrigerant is running a cooling system is unnecessary information for day-to-day operations. Usually, the only clue is a small sticker on the condenser.”

“People generally become aware of the type of refrigerant after a leak, when a system needs to be re-gassed or topped up, and the bill rolls in. This is when the type of refrigerant hits home with immediate effect. R404A has a relatively high GWP of 3922 which attracts levies and currently rests at a full retail price just shy of $10,000 per jug.”

DTS is instigating a fast track of R404A removal and offering a jug-for-jug swap out between R404A and R449A as part of its proactive servicing to reduce the nasty surprise at the wallet. R449A is a widely available refrigerant and compatible with most refrigeration systems currently running R404A.

A more environmentally friendly refrigerant, R449A has a GWP of 1397 (one-third of the R404A rating). It is more energy efficient, expending greater cooling capacity — and considerably more affordable.

Luke says the swap-out is a simple step for farmers, growers, and other commercial enterprises.

“We are excited to be able to offer R404A-R449A swap as part of our standard proactive “Service-man” contract. R404A is used across multiple market sectors and we have the capability to address this wherever

it is being used. There is no equipment upgrade, save a small valve replacement in some circumstances, and there is no introduction of operating hazards.” The longer-term advantage of replacing the R404A with a lower GWP refrigerant is lowering impact on the environment.

“We know about 90 percent of refrigerants leak out by the end-of-life of equipment. Rather than accepting that eventual release, DTS is removing the R404A from cooling systems and eliminating its re-use in New Zealand or offshore. The R404A is collected, treated in a high temperature reactor to break the chemical bonds, then transformed into compounds which can be used in various manufacturing processes.”

Luke says collaboration is also an option. “We are open to working with others to help transition primary industries and other sectors with cool storage away from the harmful R404A.”

“DTS has a strong reputation in refrigeration technologies. We want New Zealand producers and those involved in the cool-food chain to know that we are here, we are a highly responsible company and we’re interested in creating solutions that deliver increased efficiency and sustainability of our customers’ businesses.”

HRS Heat Exchangers operates at the forefront of thermal technology, offering innovative and effective heat transfer products worldwide, focusing on managing energy efficiently

Using single-use packaging in your business - read on

By Natalie Martin, 3R Group Materials Innovation Manager

Rightly or wrongly, single-use plastic packaging gets the lion’s share of attention in terms of sustainability and waste reduction.

While much of this is focused on consumer goods, it’s far from a problem faced exclusively by retailers. Single-use plastic packaging is so pervasive throughout supply chains that just about all industry members deal with it in some way or form.

As a result, they will all be affected by regulations aimed at reducing plastic waste, increasing recyclability and getting an industry-funded, regulated product stewardship scheme off the ground.

In July 2020 single-use plastic packaging was declared a priority product under the Waste Minimisation Act 2008. This means it’s one of the six product categories that must have regulated product stewardship schemes established.

Product stewardship sees scheme members contribute towards the collection of their products at the end of life so they can be reused, recycled or properly disposed of.

Why single-use plastic packaging?

This product category is by far the widest ranging of those declared priority products, covering thousands of products. Plastic also isn’t simply ‘plastic’ but is split into seven different types depending on its chemical makeup. That makes recycling it, or even establishing collection systems much more complicated.

Its negative environmental impacts when littered are well documented and are most frequently in the public eye.

Despite this, single-use plastic packaging has an important role to play in reducing waste by keeping food fresh and safe and preventing goods from being damaged. It’s low weight and durability means it can also offer a lower carbon footprint than other materials when it comes to transport.

In line with circular economy principles, the key is to ensure its use is minimised, that it’s used as effectively as possible and then recovered and recycled. Single-use plastic which ends up in landfill or the environment doesn’t meet these criteria.

Of the seven plastic types, four can be recycled in Aotearoa New Zealand to varying degrees – PET (type 1), HDPE (type 2), LDPE (type 4) and PP (type 5). There is a lack of onshore recycling infrastructure though, as well as confusion among consumers around how to properly recycle plastic. Plastic types can easily be confused and contaminated.

As a result, New Zealand has yet to develop a true circular economy for plastics which sees most of it recovered and recycled onshore. Work is afoot to change that though.

Product stewardship is coming

The Packaging Forum and New Zealand Food and Grocery Council are currently leading a project to co-design a Plastic Packaging Product Stewardship scheme. They propose the resulting regulated scheme will use an extended producer responsibility (EPR) model which sees producers pay the full cost of collection and recycling of the plastics they use in New Zealand.

In September 2022 the project received just under $1 million in funding from the Government’s Waste Minimisation Fund, with the Forum and Grocery Council contributing a further $360,000.

Stewardship isn’t a one size fits all concept and work is under way, alongside organisations across the plastic packaging supply chain, to design a system which will work best for the country. Currently, the scheme is set to encompass all plastic packaging (excluding beverage containers) including liquid paperboard and compostable plastic.

The two-year project is in its fourth of seven milestones and is due to conclude in July 2024 when a final report and recommendations are made. Regulated product stewardship facilitates a circular economy by incentivising design which reduces waste and improves longevity and recyclability. It also invests in better infrastructure and advanced recycling technologies.

Critically, it greatly improves data – a fundamental element for properly managing any waste stream.

Project Lead Rob Langford, says while the details are still to be clarified, when implemented a scheme designed for New Zealand will change the way brand owners think about plastic use and drive improved circular packaging design.

Not just stewardship at play

Product stewardship isn’t the only approach being taken to reduce plastic waste and increase recycling in Aotearoa.

The Government has implemented a range of phase outs and bans for difficult to recycle and problematic plastics, as outlined in its 2021 National

ANUFACTURING

Plastics Action Plan. On 1 October 2022 a range of plastics were banned, including PVC food trays and containers, polystyrene takeaway food and drink packaging, oxo and photo-degradable plastics and others.

On 1 July this year plastic produce bags, straws, produce labels and crockery and cutlery will be banned. From mid-2025 all other PVC and polystyrene food and drink packaging will be phased out. The end game and how it will affect you

Plastic packaging has easily received the most legislative action of any waste stream in New Zealand, which is in line with overseas trends. It’s far from a Government-led effort though, with the biggest piece of the puzzle, regulated stewardship, being driven by industry through The Packaging Forum and NZ Food and Grocery Council.

The goal is to reach a point where New Zealand only imports or produces plastic packaging which isn’t excessive and can be recycled, and there is a robust system in place to recover and recycle it onshore. A circular plastics economy.

Regulated stewardship involves all of industry, and with industry leading the way I encourage you to get involved and stay informed through the Plastic Packaging Product Stewardship project.

Natalie has a background in food technology and over 10 years’ experience in new product development for FMCG and still supports the industry as a consultant. At 3R, she works in new product development for various waste streams.

3R accelerates the circular economy through the design, implementation and management of product stewardship schemes and other sustainability services. Find out more and download their guide to product stewardship at www.3r.co.nz

Sustainability and productivity: happy bedfellows

It’s good news for local manufacturers: investing in sustainability

look at how sustainability is helping New Zealand manufacturers achieve more

The traditional approach: more productive, less sustainable

Many people view productivity and sustainability as yin and yang – connected, but opposite. Over the past 150 years, productivity has often grown at the expense of the natural environment, people and communities. For example, to increase output, many businesses have depleted natural resources like water and dumped growing amounts of waste in landfills.

On the social side, greater productivity has often meant making people redundant or disrupting communities as factories expanded.

It doesn’t have to be like this. Your sustainability programme can make your manufacturing business more productive too.

Today’s approach: more sustainable, more productive too

As a manufacturer you know the drill. To increase productivity, you need to generate more output for your inputs. In practical terms, this can mean using your raw materials more efficiently or ensuring your supply chain runs smoothly to avoid outages. In economic terms, it can involve reducing the costs of your inputs and cutting staff turnover. Here are six ways your sustainability programme can boost your productivity too.

1. Use your raw materials as efficiently as possible

Get more from your raw materials and you’ll be more productive. The circular economy is your go-to here. Your aims: to design out waste and pollution, keep products and materials in use and regenerate natural systems.

Food manufacturer Sanford ensures that even low-value parts of its raw materials do not go

to waste. Sanford partners with Auckland-based nanotechnology manufacturer, NanoLayr <link to September 2022 NZ Mfer article> who use the collagen from the skins of Sanford’s sustainably caught hoki to make nanofibre facemasks.

2. Tackle your carbon emissions and reduce your costs

Reduce your costs and you’ll be more productive. Manufacturer Hynds Group makes concrete infrastructure and plastic pipes for the water and wastewater markets. The company is tackling emissions across many areas, including transport, energy, buildings and waste.

This work offers opportunities to reduce costs too. Every litre of fuel saved, kilowatt of power left in the grid and kilogram of waste diverted from landfill saves the manufacturer money.

3. Get the best from your team

An engaged team is a productive one. Many people want to work for a business that is doing the right thing for communities and the environment. If they can contribute to ‘something bigger’, they may put in extra effort and offer up ideas. The result: a more productive business.

Bonus: they may stay with your business. Reducing your staff turnover can lift your productivity. You’ll reduce the costs of recruiting and training new staff and the time they need to ‘get up to speed’.

4. Ensure your supply chain runs smoothly

Nothing saps productivity like a creaky supply chain. A credible sustainability programme involves working closely with suppliers. For example, you’ll work together to reduce the carbon emissions in your supply chain and identify climate-related risks like a flood damaging a supplier’s factory. Along the way,

you’ll strengthen the supply relationships that keep your business productive.

5. Boost your innovation

Your sustainability work will teach you a lot about your manufacturing business. To make progress you’ll need to delve into every part of your organisation. In doing so, you’re likely to identify opportunities to work more productively. Some opportunities will be small – tweaks that will make your production processes more efficient.

Other opportunities will be more significant and offer the chance to innovate. For example, circular economy may help you identify new income streams (like Sanford’s partnership with NanoLayr – above).

6. Reduce your risks (and future costs)

Left unmanaged, today’s risks are tomorrow’s costs and a sure drain on productivity. A well-run sustainability programme offers many opportunities to identify and manage your risks. For example, a science-based Life Cycle Assessment (LCA) will help you reduce environmental risks in your product’s life cycle. Can you change the source of your raw materials to reduce your carbon emissions? Recycle grey water to use less water? Reuse process heat to consume less energy (and create less carbon)?

Investigate risks hidden in your supply chain. Are you 100% sure that you are not inadvertently supporting ‘modern slavery’? Modern slavery exploits people for commercial gain. It is a serious global issue and breaches human and labour rights.

So invest in making your business more sustainable. It’s a win for your productivity too.

www.thinkstep-anz.com

makes your business more productive. In this article, we

with less.

Erlend Ekseth on Unsplash Think Circular

-Dr Barbare Nebel, CEO thinkstep - anz

Learner support a lifeline for mature apprentice

Tokelauan Peni Panapa is partway through a New Zealand Apprenticeship in Mechanical Engineering (General Engineering) (Level 4). Working in the textile industry, Peni has outstanding knowledge of sewing machine mechanics — a rare skill that has made him a highly valued staff member by his employer, The Comfort Group.

Renowned for producing iconic brands such as Sleepyhead, SleepMaker and Dunlop foam, The Comfort Group is now Australasia’s largest bedding and foam manufacturer. More than 1000 staff are employed across New Zealand and Australia. Peni works in Otahuhu which is one of nine manufacturing facilities the company operates.

Peni’s first role when he started in 2004 was manufacturing bed bases, and after working across various divisions of the company, his broad understanding of the business and ability to operate sewing machines was noticed by management. In 2018 he was handpicked to move into the engineering department as the Head Sewing Machine Mechanic. The opportunity to undertake an apprenticeship came in 2019. Peni started the training knowing it was important to gain the qualification to have his skills formally recognised — but readily admits to struggling with the study in that first year.

In 2021 Peni’s Competenz Te P kenga Training Advisor Alan Smith introduced him to a new organisation initiative, a Learner Support online study group. Peni started participating and enjoyed interacting with other peers, but in 2022 things really took off for him when Competenz Te P kenga initiated specific online study groups for M ori and Pasifika learners. Peni decided to also join the Pasifika group and credits the group for the increase in his progress.

“When I joined the Pasifika study group, I had only completed a handful of assignments in my first year as an apprentice — I thought I couldn’t do it. Our tutor Tau, understands our backgrounds and encourages us, and Alan kept pushing me and offering his help.

“If it wasn’t for Alan, I wouldn’t be here telling my story. Encouraging me to attend the study groups and being supported at these, has meant I have so much more confidence.”

Alan has seen the huge jump in Peni’s progress and believes engaging in the Pasifika study group is the reason Peni has been consistently completing more work than he realised.

“It’s evident that being able to discuss things in his own language has helped Peni immensely. He is so motivated that he attends two study groups, temporarily giving up his beloved lawn bowls.

“Being older than most of his peers, Peni has kind of become the ‘grandfather’ at that level, he is vocal and helpful. In the Pasifika study group, he’s quite a leader.”

The engineering department is responsible for ensuring all machinery is safe and Peni has travelled around various facilities in New Zealand and Australia to maintain sewing machines. Group Engineering Manager, Nathan Carr points out that Peni also has more responsibility than your average apprentice.

“It’s incredibly hard to find young motivated apprentices in the textile industry and that’s an advantage of having a mature apprentice. I wouldn’t send an 18-year-old overseas to train staff. Plus, we have a lot of Pasifika operators and Peni understands them.”

Nathan is thrilled to see Peni thriving in the Pasifika study group and the progress he is making while earning and learning.

“The fact that Peni didn’t let pride get in the way of starting an apprenticeship and took up the extra support is a sign of his determination and commitment.”

Once qualified, Nathan has future plans for Peni which include him using his newfound leadership skills to ensure the company has a succession plan in place for this specialised trade. Now 51 years old, Peni is excited about his future and very appreciative of the support he has been shown. In addition to the assistance from the study group, Alan, his training advisor, and his co-workers, Peni notes the company owners are happy for him to work on his assignments in quiet times at work, allowing Peni to spend quality time with his family and four children.

“My family has been understanding and supportive of the time I spend on my studies, and I’m doing it for all of them.”

Peni’s advice to other mature workers considering upskilling is to stick to it.

“Ask questions when you need to. I’ve sat in the corner and was going to chuck it away, but by finding others who can help me, I am determined to get this qualification.

“I’m still short [in height] he chuckles, but I think with my age and maturity — and me just knowing things, it’s all helped me to grow.”

Interested in an apprenticeship or investing in skills development? Competenz can help you to get started.

Developments

AI helps the impossible become possible

When Sandvik Coromant engineers, Henrik Loikkanen and Jakob Pettersson, were tasked with creating an AI-generated, stainless steel synthesis of some of history’s most famous works of art, their metal cutting expertise was put to the ultimate test.

In partnership with Sandvik Group, Sandvik Coromant has developed a statue for the history books. Made using AI modelling and cutting-edge manufacturing solutions, the sculpture combines the dynamic poses of Michelangelo’s work, the musculature craftmanship of Auguste Rodin, the somber tones of Käthe Kollwitz, Takamura Kotaro’s Japanese influence and Augusta Savage’s inspirational defiance to unite some of history’s most famous artists from a period spanning 500 years. Weighing 500 kilograms and standing at 150 cm tall, the Impossible Statue was officially inaugurated at Tekniska Museet, Sweden’s National Museum of Science and Technology, in April 2023.

Producing a statue in such a way has never been done before. So how did Loikkanen, Pettersson and the team craft this blend of art and science, past and future?

When AI meets art

AI has been around for some time, with intelligent machines tasked with performing activities that normally require human intelligence, such as visual perception, speech recognition, decision-making, language translation and problem-solving. Its concept dates back decades with the earliest program written in 1951 by Christopher Strachey, later director of the Programming Research Group at the University of Oxford.

But the emergence of new, conversational AI programs such as Google’s Bard and ChatGPT open up even more applications of the technology.

Today, the achievements of AI seem almost limitless — it can even create art. After establishing a 2D design that brought together the styles of the five artists, Sandvik began translating the model into a complete 3D image.

Using depth estimators to build the 3D model, human pose-estimators to refine the body, videogame algorithms to generate realistic fabric and specialised AI to re-introduce fine details that were lost in previous steps, Sandvik was ready to turn the design into reality.

Using Mastercam software, a design for a statue with over six million surfaces and complex details was converted.

There were some unique challenges involved in the statue’s design. “We needed a phenomenally precise digital simulation to help us machine the statue,” revealed Henrik Loikkanen, Technology Area Manager at Sandvik Coromant. “Digital manufacturing means we can prove out that whole complex machining process beforehand. The only time we spent on machines, therefore, is actual production time. It also meant we didn’t produce a single scrap component during the entire project.”

Machining the impossible

After finalising the statue’s design with AI and virtually simulating optimal ways to manufacturing the statue using digital twinning, it was time to commence machining. “We treated producing the statue as we’d treat machining highly-specialised, complex parts like those found in the aerospace industry,” continued Loikkanen.

“An additional challenge came from the statue’s chosen material — stainless steel from Alleima — as ISO M materials are notoriously difficult to machine. The material group is characterised by its high work hardening rates and poor chip breaking properties during machining. Careful attention, therefore, must be paid to the tools selected for machining the material.”

Sandvik Coromant chose several tools to help sculpt each intricate part of the statue. The Coromant Capto® tooling interface was used to connect the arm and head to the torso of the statue, solid round tools from the CoroMill® Plura and Dura families were responsible for finishing all the statue’s surfaces and features and CoroMill MH20, a high feed milling cutter launched in 2021, to machine the bulk of the stainless steel removed from the workpiece.

The CoroMill MH20’s ability to machine at long overhangs typically makes it beneficial to the aerospace sector. It’s designed with difficult-to-machine components in mind and, in contrast to

the conventional four-edge concept, the MH20 is designed with a two-edge insert. This is especially beneficial as it means the weakest section of the insert is far away from the main cutting zone, delivering greater reliability and protection against wear. It also means that machining against a corner or wall will not impact the next edge or leading corner, ensuring an equal performance per edge.

CoroMill Plura HD is Sandvik Coromant’s first choice solution for heavy-duty applications in steel and stainless steel, offering safe and efficient solid end milling. The tool now comes with an added benefit in the form of Zertivo 2.0 coating, developed by Sandvik Coromant’s R&D team, to improve process security and productivity even further. CoroMill® Dura are designed to be a one for all tooling solution. The end mills can be used in all processes needed to produce a component including roughing, finishing, semi-finishing and ramping.

A manufacturing masterpiece

Naturally, machining the impossible isn’t without its challenges and the team made several adaptations to its machining strategy. “The initial 3D model was not the type of model CAD/ CAM systems can work with,” said Loikkanen. “It had to be converted from a 3D-mesh model, which is essentially a shell of surface polygons commonly used in 3D animation studios, to a solid 3D model with density and that was a pretty challenging process.

“Once completed, the model was sectioned in 17 pieces and all interfaces between them had to be modelled with a tight fit to make the intersections invisible when the parts were put together. It took time to get everything perfect.”

In the end, a statue that seamlessly blends the works of five artists was made possible. But developing a never-seen-before statue wasn’t the only accomplishment for Sandvik Coromant. “Along the way, we implemented several techniques that can be applied to future, digital machining projects,” said Loikkanen.

“Because of the pure amount of programming work, building the statue would have been impossible without a digital twin. All the testing was done digitally to save a huge amount of time spent that would otherwise be spend on trial-and-error testing. This is certainly something we can apply in future projects to save time and reduce the number of scrap components.”

“The programming and simulation process became faster and faster for each component,” added Pettersson. “Machining took about the same time throughout, mainly because the cutting data and tooling selection never changed that much. This point brought me to one conclusion: The extensive product data and recommendations we give is accurate and is easily attained either from our web, tool guide, Tool Library or even integrated directly in CAM systems themselves. Surely, this is of great value to our customers and closes one of the more work intensive tasks in closing the digital loop around CAM-programming.”

Dr Bram Smith, GM, Kayasand

How do you see the relationship between Kayasand and NZ Green Investment Finance (NZGIF) working?

We believe the investment reflects the commercial viability of Kayasand technology and its applications. It helps us push forward with the launch of the technology in New Zealand and Australia, including completing the build of our demonstration plant in Waikato, to carry out concrete trials to demonstrate our technology in New Zealand markets, and scale up our sales and engineering activities. Together, and with the support of all our stakeholders, we’re aligned on our purpose to deliver financial returns and addressing sustainability challenges in the construction industry.

When will the first manufacturing plant be operational?

We have a plant already operating in Australia and our Waikato plant will be operational in the next few weeks.

Recycled products can make up for the shortfall in sand?

Recycled materials are not going to replace all raw materials, but there are clear sustainability benefits to using recycled materials such as glass and concrete to supplement virgin aggregate supply. In addition, recycled glass and concrete have supplementary cementious activity that will help further reduce cement requirements.

How many plants do you envisage in NZ and how many plants do you envisage in Australia by 2030?

We aim to have 40 sites across New Zealand and Australia by 2030. New Zealand is a much smaller market than Australia, but the drivers around

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The Last Word

Greenstar ratings, low emissions concrete, and sustainable building materials are growing strong here.

Explain the Kemco process to readers?

The Kemco V7 sand plant brings together a specialist fine aggregate VSI crusher designed for crusher dust (<10mm), a unique vibrating air screen and a specially designed control system. Ultra-fines and clays are removed by a dust collector and stored dry for use in other applications. The result is great shaping, precision grading control and a very consistent product. By changing settings on the V7 plant, the grading can be customised to meet user requirements. (more info here: https://kayasand. com/f/Kayasand-A4-Brochure.pdf).

The benefits of this process include:

• Reduced emissions – By optimising sand shape, sizing and consistency, Kayasand sand enables less cement to make the same strength of concrete, reducing emissions.

• Replacing natural sand – Kayasand is such high quality that it can replace most or all natural sand in concrete.

• Dry process – The V7 process uses no water, offering substantial savings to quarries.

• Low operating cost – The V7 plant costs less to operate than wash plants, which are the most common way of processing manufactured concrete sand at the moment.

How will the construction industry benefit from this technology?

The industry is under pressure to deliver increasing levels of sustainability in building materials. Concrete is the most popular building material in the world

for a range of reasons, but making it also has a large environment impact. Concrete industries globally are setting a goal of producing zero emissions concrete by 2050. That’s going to take innovation in a lot of areas, and we believe that our technology can play a big part in achieving that goal.

A big role to play in greenhouse gas reductions?

We’re already seeing 20% variability in cement used in different concretes around New Zealand. A big part of this is the quality of sand available in each area. Our goal is to enable customers to produce premium quality concrete sand wherever there is a quarry to enable those 20% reductions everywhere. We do this by striving to make the perfect concrete sand, with optimum shape, precision sizing and consistency day after day.

Kayasand receives backing from NZGIF to reduce carbon emissions from concrete

for natural sand dredging. It uses by-products and recycled materials such as quarry crusher dust and recycled glass to manufacture a sand of such quality that it makes stronger concrete than natural sand when mixed with cement. Our goal is to reduce carbon emissions from concrete production by up to 20% using this method.”

Kayasand technology is used in over 300 plants across Japan, China, India, and Australia.

NZGIF Chief Executive, Craig Weise, says the deal is an important step and is a boost for the construction sector and consumers who are eagerly looking for more sustainable building materials. He says, “Auckland’s infrastructure requirements alone are projected to be $26 billion over the next decade and if New Zealand is going to meet its CO2 emission reduction targets, we need to find alternative manufacturing and building methods. We are delighted to invest in Kayasand to help deliver its services to the construction sector and to support its environmental and commercial aspirations.”

The demonstration plant is expected to be open in June and Kayasand plans to be operating 40 plants in New Zealand and Australia by 2030.

Kayasand V7 sand plants have the potential to save concrete producers 6,000 tonnes of carbon emissions each year. Kayasand plants use Kemco’s proprietary V7 sand making system and its proprietary crusher and air screen technologies enable premium quality fine aggregate to be manufactured at low cost with

low environmental impact. Cement production accounts for 8% of global carbon emissions. 4 million m3 of concrete is used in New Zealand every year.

Kayasand’s founder, Andi Lusty, was Managing Director of the company and supplied Barmac crushers globally for 30 years. In the early 2000s he encountered the revolutionary new Kemco V7 crushing technology developed by their chief engineer, Dr Kaya.

Seeing the growing need for an alternative to natural sand and inspired by Kemco’s technology, he retired from selling Barmacs. He founded a new company to sell the Kemco technology and named it Kayasand, after the technology’s inventor.

Kayasand’s hi-tech, unmanned plants are designed to be reliable and cheap to run. Precision real-time control and advanced remote monitoring capabilities mean the plant operates for long hours, maximising capital utilisation. In 2016 Kayasand installed and commissioned the first V7-60 plant outside of Asia in Holcim’s Albion Park Quarry in Australia. For more, see www.kayasand.co.nz

NZGIF is a green investment bank, established in 2019 to facilitate and accelerate investment that can help to reduce greenhouse gas emissions in New Zealand. A long-term, mission-driven investor, providing innovative, flexible and tailored capital solutions to support decarbonisation initiatives across a broad range of sectors.