NZ Manufacturer March 2017 by Media Hawkes Bay Limited

March 2017

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BUSINESS NEWS buildnz trade visitors bring $530m buying power.

MANUFACTURING TECHNOLOGY Robotic process automation increases competitiveness.

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COMPANY PROFILE

Mach 3 Engineering.

Bringing back jobs of the past We have recently talked about various Western countries positioning themselves to take industrial and manufacturing policy more seriously. It is worth further considering the future of manufacturing in relation to technology, productivity and jobs to help think about what policy moves may work, and those that may not be successful.

the move into new niche areas, be that by existing companies or start-ups.

The biggest criticism of such industrial policies currently is that some of the rhetoric is around bringing back “jobs of the past”– this has been most obvious in the United States. But it can’t be about bringing back ‘old jobs’. In most cases, those jobs are gone for reasons that can be understood, be that in the US, or here at home.

How technological change effects future production will have a big part in determining what industrial jobs in the near future will look like. We continue to see automation becoming increasingly accessible, with associated industry 4.0 technologies further adding to increases in productivity.

All our industries have faced intense competitive pressure as manufacturing capability around the world increases, while at the same time as a country our productivity has lagged behind, and our companies have faced some relative cost increases, while our competitors have sought positions to better fit into supply chains, for example - commercial logic still dictates largely what jobs disappear overseas.

There have been numerous reports on this subject, attempting to estimate how technological change will impact jobs. Such estimates suggest an increase in jobs, but in different areas and with high skill levels, while others envision a decrease in job numbers.

What this really means is we need to look hard at taking measures to improve the competitive positioning of manufacturing in New Zealand. For our Government this means creating a set of policies and conditions that help our businesses grow and adapt, while facilitating

Remaining globally competitive, and getting even better at it, means relentless innovation in a world where we see accelerating change in everything from consumer behaviour to product technology, methods of production and methods of doing business.

It is too early to tell what will be the reality, but one certainty is that skill requirements will continue to change. This is an area where government as the owner and manager of most of our education and training infrastructure has to take a leadership role.

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The second part of this discussion, is what businesses are doing themselves to stay competitive and remaining manufacturing and providing jobs in New Zealand.

Since the GFC, our manufacturers have gone through a particular tough set of circumstances: slow global demand for many products, and a period of considerable overvaluation of our currency - our manufacturers have had to become leaner and adjust business models to survive – relentless innovation. That is not going to change, and the industry is facing some structural challenges beyond our overvalued dollar. Lack of scale is one of them. In one sense smaller manufacturers are more nimble and able to change quickly, but innovation

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CONTENTS DEPARTMENTS 4 EDITORIAL

ADVISORS

It’s all cyclical.

5 BUSINESS NEWS 6 MANUFACTURING TECHNOLOGY

Craig Carlyle

buildnz trade visitors bring $530m buying power.

Developing smart machines and equipment to meet manufacturer’ demands. Jetson TX2 enables AI at the Edge. Is this how we will make things in 2030? Robotic process automation increases competitiveness.

10 BUSINESS NEWS

Engineering scholarship announced in International Women’s Day. Climate change driving urban design.

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

8 9

Catherine Beard

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

11 SOUTHMACH

When we work together, we can achieve great things.

12 CASE STUDY 14 DEVELOPMENTS

How to safely launch steel across water.

Dieter Adam

Business group advises employers on drugs and the workplace.

15 COMMENT 16 DEVELOPMENTS 16 COMPANY PROFILE

Three trends for the future of manufacturing.

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

Nanofibre strengthening in hot demand.

Lewis Woodward

Mach 3 Engineering, Christchurch.

18 SMART MANUFACTURING

Disruption not slowing down. Kineo version 5.0 released. Promapp process management software supports global expansion.

23 FOOD MANUFACTURING 26-27 MAINTENANCE MANAGEMENT

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.

Climate change and how it is affecting food.

The chaos theory of maintenance management.

PRODUCTS FOR 28 NEW MANUFACTURERS Smaller cylinder packs more punch. Advanced plastics benefit food and beverage specialists.

29 INDUSTRY 4.0

Eion Musk’s brave new world.

17 Dr Wolfgang Scholz

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

30 COMMENT

Is your talent management strategy ready for the global skills gap?

31 REAR VIEW

Auckland Transport…You got this one right!

It’s all cyclical PUBLISHER

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

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

CONTRIBUTORS

Dieter Adam, Holly Green, Craig Carlyle, Dr Subra Suresh, Klaus Schwab, David Moore www.mscnewswire.co.nz

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DESIGN & PRODUCTION

Recently, Auckland Mayor Phil Goff went on nationwide television to explain Auckland City Council’s plan to bring tighter controls for the future of the super city. He discussed the categories to be affected, including council services. Which means possible redundancies for some of the workers. It’s hard to come to grips with where Auckland is going. On one hand, you have major infrastructure underway and the change of gear to build thousands of homes. Yet the city may not need all its service workers? More rubbish to collect with less collectors. Doesn’t make sense.

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

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Is this an example, as Shamubeel Eaqub would say of, “the benefits of growth not spilling over to citizens more widely”? Why would you tighten up the city’s essential services when they are needed more than ever?

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Of contracting services for the good of the dollar?

Vol.8 No.2 March 2017 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.

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Here’s another example, you have Auckland with years of development ahead, which hopefully will mean new manufacturing jobs. On the other Christchurch where there is concern of a slowing down in the local economy once the redevelopment is complete. Tradespeople,

ASIA

MANUFACTURING NEWS

NZ Manufacturer March 2017

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engineers,

manufacturers, industrial designers and the construction industry will have a field day in Auckland meeting the needs of developers who are redefining the Auckland region. Creative thinking will bring architects out of their shells with a vision of a new look city for the future which may well include a new stadium on the waterfront. In Christchurch and environs it is simply a matter of getting on with it. Local manufacturers can tender for work in Auckland’s development, just as Australian companies can. On top of this Christchurch will again pick up speed. It’s all cyclical. Not all the immigrants are going to Auckland. Products and services are needed on an on-going basis.

Success Through Innovation

EDITORIAL

Doug Green

Forget about the consequences of failure. Failure is only a temporary change in direction to set you straight for your next success. - Denis Waitley

BUSINESS NEWS

buildnz trade visitors bring $530m buying power buildnz | designex, New Zealand’s leading trade show for the build, construction and design industries is back for 2017 with organisers, XPO Exhibitions, excited about the business opportunities available to the hundreds of exhibiting companies expected onsite.

Tony Waite Events Director of buildnz | designex.

For 30 years, the NZ owned and operated and award winning buildnz | designex has been the largest and longest running industry trade show in New Zealand bringing 1000’s of qualified industry professionals and innovators together.

Non-residential construction is surging with increased demand for education and healthcare facilities as well as retail. The Unitary Plan loosens planning restrictions that will allow 442,000 more dwellings by 2040 to accommodate population growth.

The event organisers are quick to point out they have audited data evidencing attending visitor attendance and an impressive $530,000,000 in buying power – providing a formidable face-to-face sales and marketing platform for industry suppliers across the 3-day event.

However, these trends are not just limited to Auckland as population growth spills over into ‘halo’ regions of Waikato, Bay of Plenty and beyond!

The next few years are going to be pivotal for the industry suppliers to take advantage of the growing property and construction trends in Auckland and nationwide. “There are simply no other events bringing builders, architects, planners, specifiers, designers and developers in this volume all under one roof,” says

Commercial & industrial growth

Construction continues to be a key driver of economic growth for New Zealand. Growth has been underpinned by strong net migration which in turn is creating strong demand for residential construction, especially in Auckland.

buildnz | designex is perfectly timed to take advantage of the of $35billion annual construction spend. We asked the organisers what the three key reasons were for the 6,000+ industry professionals expected at the show. Waite explains “Our post-show surveys indicate the industry attend the show to 1) see and touch the latest products and technology for the sector, 2) better understand regulatory change within the industry, and 3 )develop business opportunities at a pan-industry level.

stakeholder debate on current issues and developments within the sector. The launch of a Training and Jobs hub in partnership with a leading industry training body will help address the current skilled labour shortage and the need to train an extra 30,000 workers over the next 5 years.

“buildnz | designex’s pedigree as a pan-industry expo is second to none – we’ve been awarded Best Trade Show in Australasia and Best Trade Show in New Zealand at back to back EEAA Awards for Excellence in Sydney and Melbourne,” says Waite. Held at Auckland’s ASB Showgrounds across 4 halls and 12,000m2 of exhibition space the 3-day buildnz | designex trade show is set to co-locate with the National Safety Show; again the largest event of its kind in New Zealand concentrating on workplace health and safety solutions and education. The organisers clarify they co-located the expos in part due to the growing importance of health and safety across the wider construction industry.

Add to this a comprehensive programme of free to attend professional development seminars including a number of international keynote speakers, special features, networking opportunities, show-only specials, and the opportunity to win a huge array of prizes (including a brand new Ford) - this is the one event the industry won’t want to miss. buildnz | designex is a trade-only event running 25-27 June 2017 as the ASB Showgrounds Auckland and is free to attend for those that register online at www.buildnz.com

The combined event has gone from strength to strength and 2017 will be no exception. The organisers have worked hard on bringing not only new initiatives but also on enhancing those existing. The first is the launch of a two-day industry “Build Summit” - a new pan-industry event involving leadership discussion and encouraging key industry

Employment growth

Economic output

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

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getba.org.nz

Greater East Tamaki Business Association Inc.

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MANUFACTURING TECHNOLOGY

To reach a great height a person needs to have great depth. - unknown

Developing smart machines and equipment to meet manufacturers’ demands Visitors to the Rockwell Automation stand at AUSPACK 2017 will experience first-hand how The Connected Enterprise drives new opportunities to optimise production and supply chain More than 70 million people are joining the middle class every year, increasing demand on manufacturing resources and infrastructure. Meeting this demand means being more productive, sustainable and flexible. Fortunately, the convergence of new technologies including mobile devices, the cloud, and big data, can help securely connect plant information with enterprise systems. “With the right network infrastructure and the ability to integrate information across IT and control systems, industrial enterprises can coordinate operations and communications – facilitating a demand-driven supply chain,” explained Bob Hicks, OEM Segment manager at Rockwell Automation.

delivers a completely new user experience and helps industrial teams improve productivity. Rockwell Automation will demonstrate how they are helping customers optimize their operations today. This interactive demo will highlight how data from smart, connected industrial assets can be transformed into meaningful insights to drive positive business outcomes. To improve communications between equipment builders and manufacturers and boost performance, Rockwell Automation recently launched a new FactoryTalk Analytics for Machines cloud application. This application will be demonstrated at AUSPACK where

visitors will have the opportunity to see first-hand how it provides equipment builders access to performance analytics from deployed systems in order to gain valuable insight to support their customers. Before now, there was no standard approach for equipment builders who needed to collaborate with their manufacturing customers. With Rockwell Automation providing the capability for trusted access to information, equipment builders can offer customised services, including proactive maintenance and training. As companies drive for new levels of productivity, they require safety

By bridging the gap between systems, Rockwell Automation is helping connect industrial enterprises to improve operations. Smart Manufacturing, enabled by The Connected Enterprise, is driving new opportunities for end-users to optimize their production and supply chain. According to Matthew Treeby, commercial marketing manager at Rockwell Automation, “Our AUSPACK exhibit will feature machinery in action and never before seen technology. Visitors will have the opportunity to download the new Rockwell Automation FactoryTalk TeamONE app, redefining smartphone use on the plant floor to make individual workers more productive and ultimately connect all pillars of The Connected Enterprise vision.” Attendees will see how TeamONE

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solutions that assist not hinder productivity. Rockwell Automation is designated as the largest safety automation provider in the world. At AUSPACK the company will showcase the latest developments including best-in-class integrated safety. Experts will be on hand to share knowledge and help you develop safer solutions that support your productivity targets. “AUSPACK will bring together leading machine and equipment builders many of which use our solutions in their products. See first-hand how we can help you develop the smart machines and equipment that your manufacturing and industrial customers need,” said Treeby.

Don’t judge each day by the harvest you reap but by the seeds that you plant. - Robert Louis Stevenson

MANUFACTURING TECHNOLOGY

Jetson TX2 Enables AI at the Edge the NVIDIA Jetson TX2, a credit card-sized platform delivers AI computing at the edge — opening the door to powerfully intelligent factory robots, commercial drones and smart cameras for AI cities. Jetson TX2 offers twice the performance of its predecessor, or it can run at more than twice the power efficiency, while drawing less than 7.5 watts of power. This allows Jetson TX2 to run larger, deeper neural networks on edge devices. The result: smarter devices with higher accuracy and faster response times for tasks like image classification, navigation and speech recognition. Jetson TX2 brings powerful AI capabilities at the edge, making

possible a new class of intelligent machines. These devices will enable intelligent video analytics that keep our cities smarter and safer, new kinds of robots that optimise manufacturing, and new collaboration that makes long distance work more efficient.

to its Cisco Spark products that connect everyone, everywhere. Cisco is able to drive new experiences and remove the barriers between physical and virtual spaces, thanks to Jetson TX2’s advanced technology capabilities in AI computing and graphics.

The Jetson TX2 joins the Jetson TX1 and TK1 products for embedded computing. Jetson is an open platform that is accessible to anyone for developing advanced AI solutions at the edge — from enterprise companies and startups to researchers and high school students.

For years, NVIDIA has demonstrated its commitment to FIRST through multifaceted support by providing Jetson developer kits for robot builds, online training resources, and team and event funding. Through these efforts, NVIDIA is helping to inspire more young students to become innovators and inventors.

NVIDIA Jetson is a powerful platform that enables Cisco to add AI features such as facial and speech recognition

System Specs and Software Key features of Jetson TX2 include: • GPU: 256-core NVIDIA Pascal™ architecture-based GPU offering best-in-class performance • CPU: Dual 64-bit NVIDIA Denver 2, Quad ARM® A57 • Video: 4K x 2K 60fps encode and decode • Camera: 12 CSI lanes supporting up to 6 cameras; 2.5 gigabytes/second/lane • Memory: 8GB LPDDR4; 58.3 gigabytes/second • Storage: 32GB eMMC • Connectivity: 802.11ac WLAN, Bluetooth • Networking: 1GB Ethernet • OS Support: Linux for Tegra® • Size: 50mm x 87mm The Jetson family is supported by the most comprehensive SDK for

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AI computing, JetPack 3.0, which makes it easy to integrate AI into a wide variety of applications, and support the following: • TensorRT™ 1.0, a high-performance neural network inference engine for production deployment of deep learning applications • cuDNN 5.1, a GPU-accelerated library of primitives for deep neural networks • VisionWorks™ 1.6, a software development package for computer vision and image processing • The latest graphics drivers and APIs, including OpenGL 4.5, OpenGL ES 3.2, EGL 1.4 and Vulkan 1.0 • CUDA® 8, which turns the GPU into a general-purpose massively parallel processor, giving developers access to tremendous performance and power-efficiency . The NVIDIA Jetson TX2 Developer Kit, which includes the carrier board and Jetson TX2 module, can be preordered for US$599 in the United States and Europe. It will be available in other regions in the coming weeks. The Jetson TX2 module will be available in Q2 for US$399 (in quantities of 1,000 or more) from NVIDIA and its distributors around the world. The price of the Jetson TX1 Developer Kit has been reduced to US$499.

NZ Manufacturer March 2017

MANUFACTURING TECHNOLOGY

You must stick to your conviction, but be ready to abandon your assumptions. - Denis Waitley

Is this how we will make things in 2030? Dr Subra Suresh, the president of Carnegie Mellon University and co-chair of the Global Future Council on Manufacturing and Production Systems, sees a future where planes fly themselves and prosthetics communicate directly with doctors. In this period of technological revolution, he says policy must keep pace with change to ensure the benefits continue to outweigh any unintended consequences. First of all, can you explain the critical role of manufacturing and production systems and why it is so important to discuss their future? In January 2016, the World Economic Forum meeting in Davos had the theme the Fourth Industrial Revolution. The distinguishing feature of the Fourth Industrial Revolution is the unique convergence of the physical and the biological. So, we have areas like artificial intelligence, machine learning, robotics, computing, mobile technology; they are transforming manufacturing.

Manufacturing and production systems will be completely transformed by the Fourth Industrial Revolution – a period characterised by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.

Another issue which will come up is when technology has already far outpaced policy – driverless cars are a very good example of this. Who is responsible if there is an accident? That is also going to be an issue in the future of production and manufacturing. How do we respond to the legal issues, the policy issues, the insurance issues?

there, so it can monitor the gait of the patient. If it is not usual for that patient, you can immediately transmit some information to his or her doctor. The downside is, who has access to this data and what will they do with it? The last point, General Electric has just established an advanced manufacturing prototype facility

What are the key themes that arise when we talk about the future of manufacturing and production systems? The themes would be things such as, what does globalisation mean for the future of production? Recent geopolitical trends, from Brexit, to what is happening in the US; the reaction to a fast pace of globalisation which is disrupting local economies and creating disparity within individual countries.

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Trade policy will have to evolve. If the Alibaba’s or the Amazon’s of this world continue to grow the way they have been growing and continue to dominate commerce, how does that affect policy in the future?

Can you describe the impact of emerging technologies on production systems? Emerging technologies will lead to much more customisation, for example 3D printing, advanced additive manufacturing. We have the technology today for a student to design her own dress, transmit that to a manufacturer, have it printed on the material she wants, and have it shipped probably within 24 hours. Then there is data. For an average flight of a Dreamliner, Boeing generates about 1 terabyte of data. The question is, how do you use that information? Can you fix problems in real time? Can you identify a defect in a part, or a problem during the flight and ask the plane to land immediately? The other area is healthcare, if you have a hip or knee implant, we can make a 3D printed part and we can embed sensors in

Spring & Wire form manufacturing company where solutions are created for your problems.

Different countries may respond to it differently. With increasing globalisation, even if countries close their borders, individual citizens of the world can engage in commerce across borders. These are issues that need to come up in the discussion of the Future Council and also public discussion over the next few years. What is the role of trade and capital flows in future production systems?

It’s important that we look at how that impacts employment, how that impacts the disparity between the wealthy, and the middle class, and the lower economic parts of society. Every time we have an intentional use of a technology there are unintended consequences. If we rely exclusively on robots and artificial intelligence, is there a possibility we will cede control to machines? Will we be able to react and correct in a timely fashion so that unintended consequences don’t outweigh the intended benefits?

will it be driven by technology, or will it be driven equally by social welfare?

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in Pittsburgh where they can do what they have been doing using conventional techniques in half the time for half the cost. So then the question of pricing and economics comes up. Will this make things cheaper, or will it make it more expensive because there is so much R&D effort involved? Will there be price bulges because someone has a dominance in this area? How will changes in production systems affect job creation? What can be done to counteract any negative impacts of change? There is a broad feeling that as automated systems become more and more prevalent, that will have inevitably some negative impact on employment. So the question will be, what is the impact on minimum wages? What is the impact on unionization and negotiating ability for workers? Will policy be driven more by profit, or

The second issue is of multinational corporations producing all around the world but keeping, for tax reasons, most of their profits overseas. What will the world’s production systems look like by 2030? It will be much more customised. If you want to buy a car you could choose the material for the body, you can have your choice of engines, you could customise whether it’s totally driverless or a partially driverless, self-parking car. There will be a whole range of customisation even for items that are mass-produced. Also culturally, the baby boomer generation is very different from Generation X, Generation Y and especially the Millennial Generation, who according to many experts don’t want to own things, whether it’s owning a car or a house, as their parents and grandparents did. Then what does that mean for the future of consumerism, which will invariably affect production?

Victory comes only to those prepared to make it, and take it. - Thomas Leo Clancy Jr.

MANUFACTURING TECHNOLOGY

Robotic process automation increases competitiveness Despite the acknowledged productivity benefits of automation, many companies still handle common business practices manually, missing out on efficiencies and potential competitive advantage. Organisations should consider robotic process automation for back-office operations, and even some front-office processes, which are currently still done manually, according to NICE. Gerry Tucker, managing director, ANZ, NICE, said, “Businesses can gain significant benefits by automating certain business processes through robotic process automation. There are two types of robots: attended robots, which are used on a desktop to help humans optimise their work; and unattended robots, which live on the server and replace human activity. Using attended or unattended robots can help organisations deliver a consistent customer experience and makes workers more efficient. “For example, one of the world’s largest furniture retailers worked with NICE to implement a robotic process automation solution that could streamline order entry and fulfilment for customers. The system eliminated 100 per cent of order entry errors. It

automated the processes and tasks associated with the equivalent of 16 full-time employees, letting those workers focus on more value-adding tasks.

customer service and employee satisfaction at the same time. Employees can focus on different and more interesting work, rather than doing admin or routine jobs.

In total, the robots reduced the company’s manual workload by 5,000 hours per year, delivering a faster, more accurate automated order and delivery system. This dramatically improved the customer experience.”

2. Reducing time and improving customer experience: By eliminating lengthy manual tasks and replacing them with faster, automated processes, employees can complete more work in less time, providing higher-quality customer service faster. This increases customer satisfaction and saves money, ensuring the company can remain competitive.

Robotic process automation has been defined by the Institute for Robotic Process Automation as “the application of technology that allows employees in a company to configure computer software or a ‘robot’ to capture and interpret existing applications for processing a transaction, manipulating data, triggering responses and communicating with other digital systems”.1 NICE has identified five ways robotics can improve an organisation’s business processes, enhance the customer experience and deliver greater employee satisfaction: 1. Increasing employee satisfaction: By relieving employees of repetitive, menial actions, organisations can improve

3. Reduce errors: Human error is virtually unavoidable in manual processes. Automation through robotics not only eliminates errors but ensures that the process is completed in the same way every time. In turn, this means less time and money is wasted, leading to greater customer satisfaction. 4. Increase revenue: By letting customer-facing employees have the right conversations with customers at the right time, businesses can increase revenue. For example, when a customer calls to update their address and add an

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authorised person to their account, robotic processing automation presents the agent with additional information about the caller. This gives them the information they need to recommend a relevant product or service to the customer at the right time. 5. Enable compliance: Robotic processing automation mitigates the risk of data compromise that goes hand-in-hand with manual manipulation of customer information. With automation, the risk of non-compliance, data loss, or data compromise is greatly reduced. This saves time and money, and ensures the company’s reputation remains intact. Gerry Tucker said, “Robotic processing automation lets robots perform basic, rules-based tasks so humans can focus on more value-added tasks. The robots can operate 24/7 without breaks, making them far more cost effective than human operators and even more cost effective than offshore providers. Furthermore, robotic processing automation provide strong governance and auditability because it enables detailed and real-time traceability of all process steps.”

NZ Manufacturer March 2017

BUSINESS NEWS

Allow home buyers to afford a deposit by giving them access to their superannuation. -John Alexander, on how not to make housing policy.

Engineering Scholarship announced on International Women’s Day “I feel alive every single day!”

scholarship validates my choice.

Charlotte Flaherty’s decision to leave full time work, and sign up for a Bachelor of Engineering Technology (Mechanical) took a lot of soul searching, and a long time to resolve. So she’s delighted with the news that she is Otago Polytechnic’s inaugural winner of the Women in Engineering Scholarship.

The 54 year-old has been a journalist at the Daily Telegraph in the UK, a Safer Journey Coordinator at the Dunedin City Council, and (is still) a mother of two. But after studying a couple of civil engineering papers five years ago, she got a taste for engineering.

“I gave up full time work to do this. My self-image and status was tied up with my job, and obviously, I’ve taken a drop in income, so winning this

“I’m moderately geekish. I really want to speak fluent maths, and I have a real desire to understand how structures and systems work and react.”

“I saved for three years for the fees, but I didn’t quite have enough, so this scholarship is just perfect.”

Charlotte’s no stranger to study. She has a CapableNZ degree in Business Transformation and Project Management. This was gained by studying part time while working full time. But she’s decided it’s time to focus solely on her education.

Through the scholarship, Charlotte will receive $1000 towards her fees for each year of study.

“I am so happy - I’m absolutely loving the study. I really believe it’s the right choice and career move for me.”

AI, collaborative consumption and climate change driving urban design Artifical intelligence, driverless cars, the shared economy and climate change are disrupting the future of New Zealand cities, according to internationally renowned planning experts.

urban plans are drafted. Technology companies are playing a leading role in the development of infrastructure, and data is being used to create urban patterns and systems rather than predict and manage them.”

of up to 3.7 degrees celsius.

The challenge for local authorities and citizens is adapting to these advancements, claim urban futurist and former Lord Mayor of Adelaide Stephen Yarwood, and highly respected landscape architect Professor Elizabeth Mossop.

Technology advancements in the way of driverless cars have the ability to change spatial patterns and city cores, claims Yarwood.

“As things heat up more and more, the issues become increasingly acute and that is what we, as planners, are faced with at the moment.”

The pair are speaking ahead of the New Zealand Planning Institute’s (NZPI) annual conference Changing Places in April, at which they are both keynote speakers. Mossop’s presentation will focus on ‘Landscapes of Urban Resilience’, while Yarwood will be addressing ‘Urban Disruption and Contemporary Change – how the hell do you plan for the unknown?’.

Smartphone data drives city planning Artificial intelligence and other emerging technologies have the ability to result in a “tsunami of change” says Yarwood, who consults internationally on urban futures and innovation. “For example, information obtained from citizen’s smartphones and networked digital devices can be analysed by artificial intelligence software to calculate population growth, street usage and land development,” he says.

“As parking becomes less of a demand there will be a lot of reclaimed space. Sprawling bitumen carparks could be replaced with high-value residential developments or public spaces.”

Urban heat poses greatest health threat Climate change and the resilience of cities is another key planning challenge that is confronting cities, claims Mossop, Dean of Design Architecture and Building at Sydney’s University of Technology. Mossop has also been involved in the post-hurricane reconstruction of New Orleans and the Gulf Coast, and the ongoing revitalisation of Detroit in the United States. “Mitigating the effects of urban heat islands through increased tree canopy and vegetation, for example, is necessary to avoid heat-related public health issues and the economic implications of increased energy use,” she says.

“Ultimately, this leads to the creation of a utopian future upon which

Urban heat islands are built-up areas that are significantly warmer than their rural surroundings due to human activities, and often experience increased temperature differences

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NZ Manufacturer March 2017

“Contrary to popular belief our greatest public health threat is heat,” says Mossop.

In New Zealand, the regions in which people are most likely to be affected by climate change are Northland, the east coast of the North Island and parts of Bay of Plenty, according to Environmental Heath Indicators New Zealand.

Agri-tourism to benefit from Uber-esque collaborative consumption With the rise of Airbnb, Uber and other peer-to-peer services, people are exploring unfamiliar areas of their cities and interacting with people and places in ways “that just years ago were unimaginable”, adds Yarwood. This has contributed to the rise of the shared economy, which Pricewaterhouse Coopers predicts will be worth $335 billion by 2025. Defined as collaborative consumption, it involves people renting out things they are not using such as a car or house. “People are creating a new sense of space, which is changing infrastructure and spending patterns,” says Yarwood. “In New Zealand I see the shared economy as playing a big role in

driving agritourism, with planning changes allowing farmers to promote accommodation for added development.”

Planners to partner with local authorities Mossop says planners are becoming more influential, working alongside local authorities and key decision makers to tackle the challenging issues. “Our creative problem-solving is needed to help with complicated questions around urban population growth, sustainabilty, resilience, and how cities influence issues of social justice. We need to be creative in how best to use new technology and advancements.” NZPI’s Changing Places conference, to be held in Wellington, will address the merging relationship between built and natural environments. More than 500 delegates are expected to attend, including industry leaders, iwi, resource managers, urban designers, scientists, environmental advocates and local and central government. Other speakers at the April 4-7 event include Environment Minister Nick Smith, leading economist and media commentator Shamubeel Eaqub, and renowned Environment Court judges John Hassan and David Kirkpatrick.

The moment you make passive income and portfolio income a part of your life, your life will change. Those words will become flesh. – Robert Kiyosaki

SOUTHMACH

When we work together, we can achieve great things We are a small country but we punch above our weight on the global stage. To compete, New Zealand businesses need to innovate and collaborate to use our collective skill sets to make collective gains. The Stabicraft 1600 Fisher, aka Project Carbon, is an example of collaborative product design at its best. An iconic brand Stabicraft are a classic kiwi company well renowned for their iconic aluminium boats. In 2014(?) they decided to challenge the status quo by applying composite technologies to their new range of boats. This would make them the first NZ trailer boat manufacturer to use carbon

fibre technology in its above-water structure. A collaborative approach The project team was formed, which saw the Stabicraft Design Team supported by experts from complimentary businesses: Gareth Dykes of FI Innovations and Mike Whittaker from Caliber Design. The team took a collaborative approach to produce a set of concepts that bought a fresh perspective,

design process thinking, and bespoke use of composites to the recreational boat market. “Project Carbon” was borne! Design thinking can inject innovation into business The new material means that the cabins and top sides can be prepared off the boat and fitted to the hull in a short amount of time. This simplifies the assembly process and reduces skilled welding labour (which is in short supply), allowing for increased through-put during later assembly stages on the production line. The multi-piece design of the cabin and console allows for contrasting colours, materials and textures to be utilised within the cabin within the one assembly. The composite parts are vacuum infused with epoxy resin which makes them very strong and resistant to damage, attributes in fitting with Stabicraft’s

renowned traits of strength and durability. Worldwide recognition! The Stabicraft 1600 Fisher has been well received by the market and even won the prestigious Red Dot Design Award in 2016. The Red Dot Award is one of the most respected design competitions in the world and received 5000 entries from 51 nations. The “Red Dot” is the revered international seal of outstanding design quality. Caliber thoroughly enjoyed working with the Stabicraft team because of their open mindedness to new thinking, their willingness to be adventurous with new design ideas, and their enthusiasm to lead the industry by being disruptive. Caliber Design are excited to bring the Stabicraft 1600 Fisher to SouthMACH 2017 and showcase a stunning example of kiwi design collaboration that we’re very proud to be part of. *Caliber Design is an engineering, analysis, and mechanical design consultancy with offices in Auckland and Christchurch. They are passionate about engineering excellence.

24-25 MAY 2017 Horncastle Arena, Christchurch

The South Island’s premier technology trade show for the Engineering, Manufacturing and Electronics industries.

THE HEARTLAND OF NZ MANUFACTURING Christchurch is the second largest manufacturing centre in NZ employing around 22,750 people and contributing approximately $2.2 billion to Christchurch's GDP* Combine this with the wider South Island economy and SouthMACH has the opportunity to deliver your business to a targeted and qualiﬁed audience like no other marketing platform.

www.southmach.co.nz

INTERESTED IN EXHIBITING? CONTACT OUR TEAM Aad van der Poel, Exhibition Manager Aad@xpo.co.nz +64 (9) 976 8350 or +64 (21) 314 199

*Source: Canterbury Development Corporation (CDC) SPONSORED BY

ORGANISED BY

SUPPORTED BY

Showcase. Educate. Sell.

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NZ Manufacturer March 2017

CASE STUDY

Downer’s custom-engineered steel bridge launching nose, features a bespoke design controller (yellow components in picture). This was developed in partnership with Downer and Jonel Hydraulics to maximise safety when launching bridge sections over the Ongarue River as part of a major KiwiRail infrastructure project.

How to safely launch steel across water The new Ongarue Bridge launch nose controller, was a feature of a seven-bridge project involving a host of other Enerpac bolting, pumping, heavy lifting and positioning and fine control technologies available throughout Australasia and globally. The KiwiRail project by Downer, completed this year, will permanently improve the country’s main trunk rail network and allow more freight to be carried over strongly refurbished structures to busy destinations

including facilities.

ports

and

intermodal

“Safety was a keynote of the entire project, extending over nearly five years. The longitudinally launched Ongarue bridge sections posed unique challenges in this regard, compared with the rest of the bridge launches, which were lateral launches involving shorter distances,” says Jonel Business Development Manager Mr Shane Quigley.

Downer and Jonel worked through a range of pivot positions and leverage points to ensure precision guidance and placement of bridge sections, employing the cantilevered nose incorporated in a bolted steel frame (below) driven by Enerpac Hydraulics. The entire launch, tension, position and lowering systems developed by the partnership comprised: • Two pairs of RCH-306 single-acting cylinders

30-ton locked

together base-to-base projecting force outwards within the hinged frame to provide lowering and positioning force • Two RC-2514 single-acting cylinders locked in the hinge frame to provide lifting and positioning force • Specialised hollow single-acting cylinder to tension MacAlloy bars – used to support the cantilever support section of the main bridge structure • Two pairs of specialised double-acting hollow cylinders used to lower and position each section • An Enerpac ZE3410SE hydraulic electric pump, specified to provide best performance for mid-range cylinders and tools, was used in combination to provide lift and lowering of the launch nose. The ZE pump’s high-strength, moulded electrical box protects electronics, power supplies and LCD readout and stands up to harsh industrial environments such as this

Cantilevered launch structure, above, with control functions, below, governing launching and positioning operations

NZ Manufacturer March 2017

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• An Enerpac PUJ-1201E hydraulic electric pump with two-speed pump operation for reduces cycle times and improved productivity was used in combination with Enerpac low-profile lock ring cylinders used to take up load on cantilevered sections. The low-profile cylinders

Leadership is the art of getting someone else to do something you want done because he wants to do it. – Dwight Eisenhower

An energy-saving new generation Enerpac ZU torque wrench pump, specified for high-cycle maintenance tasks, was used to actuate the S1500 and S3000 wrenches used for the tasks involved. “Operators found our Enerpac auto cycle feature torque pumps indispensable, speeding up the whole job with high flow output and by allowing operators to focus on the final bolt head position,” said Mr Quigley The five other bridges in the project besides the Ongarue bridge (at Whiritoa, Taringamotu, Opotiki, Mangakahikatea, and Waihuka) – used low-pressure double-acting cylinders to launch sections by sliding them sideways from beams to falsework.

Work under way on the Ongarue Bridge, one of seven in the project

– part of a range designed to fit compactly into confined spaces – were selected to ensure optimum mechanical load holding safety. Low-pressure double-acting cylinders were used to launch bridge sections longitudinally from the launching bed, with rollers being used in five positions over the launch series.

Overview of Ongarue Bridge as it nears completion

Bridge sections involved in the entire seven-bridge project were assembled using Enerpac professional bolting technology, which demonstrated outstanding safety over more than 250,000 torque cycles requiring high precision and repeatability.

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Enerpac RC-506 standard cylinders were used in this operation to aid removal of sliding beams and to adjust bridge longitudinal positioning during the sliding and final placement. The safe and reliable workhorse single-acting RC cylinders were also used to lower the bridge onto bearing pads. “Reliability of the equipment was outstanding too. Enerpac all-steel torque wrenches are known for durability and the Enerpac name is a byword for safety and reliability. All the equipment we supplied for the project worked seamlessly, without interruption. We ensured spare components were available if needed, but everything functioned correctly without breakdown.

NZ Manufacturer March 2017

DEVELOPMENTS

If you do what you always did, you will get what you always got. - Anonymous

Business group advises employers on drugs and the workplace The Employers and Manufacturers Association (EMA) urges business leaders to ensure they are on solid ground on the issue of drug abuse in the workplace, by having policies and procedures firmly in place and embedded in company cultures.

Campbell, says, “The Prime Minister’s right - it is an issue and we hear anecdotal evidence to this effect from our members regularly - especially in relation to drugs and existing employees.

Various groups have disputed the Prime Minister’s claim.

“It’s all very well quoting government statistics which seem to minimise the issue, but as a business leader representing more than 4000 companies from Taupo northwards, I can tell you those figures are just plain wrong. My advice to Government departments is to get better data, and we are prepared to help with that task.”

However, EMA’s chief exeuctive, Kim

The EMA also encourages all its

Earlier this week the Prime Minister said several businesses a week complained to him about their problems getting Kiwi workers to pass a drugs test. He went on to say that one of the hurdles these days is just passing a drugs test, especially our young people.

members to put in place a clearly-understood drugs and alcohol policy, and embed it in their contracts with workers. “The risks are a fact of life of operating a business in New Zealand in 2017 and we encourage all our members to take this step in the interests of mitigating what can be very serious health and safety risks in the workplace.” The EMA also advises members that if they conclude that health and safety risks are elevated with respect to drugs and alcohol in their workplaces, they should move to the next level and consider the range of options such as random testing in the workplace and

testing at the prospective employee stage, ie, before an employment contract is offered. Help is available for the creation of appropriate drug and alcohol policies as well as access to drug testing regimes, through membership of the EMA.

Laid back design success Otago Polytechnic student, Jeremey Metherell, had a good excuse for lying

around all summer. He calls it product testing … but the reality is he deserved

a relaxing break after spending all of last year designing a hammock for the New Zealand brand Cactus Outdoor. It’s unusual for a student to successfully take a product to market while still studying. The first two batches of hammocks quickly sold out, and Cactus Outdoor is now onto its third. Daryl Warnock, Cactus Outdoor General Manager, says the hammocks are still in production, and will have another push next summer. “We’re getting great feedback from our customers” he says. Jeremy’s stoked that people are enjoying his hammocks. “I really couldn’t have asked for a

better result, I’m so glad I took on the project.” Tim Armstrong, Otago Polytechnic Design Lecturer, says Jeremy’s perseverance helped him succeed. He refined his hammock 12 times before it was ready for market! “He also has strong sustainability and social ethics in design – so a similar ethos to Cactus Outdoor” Tim says. Jeremy’s back at Otago Polytechnic this year studying for his Bachelor of Design (Honours) degree. He says he’s keen to continue designing and even bought an industrial sewing machine. “I really enjoy the outdoor market, so that’s where I’ll put my focus.”

NZPICS - Bridging the Knowledge Gaps in the Industry By Vishnu Rayapeddi, B. Pharmacy (Honours.), MBA (Ops.), CSCP, CLTD, MILT Phil O’ Reilly, the then Head of Business NZ at one of NZPICS AGM’s a few years ago mentioned that “NZPICS is New Zealand’s best kept secret”! NZPICS Incorporated (New Zealand Production and Inventory Society) is a 36 years young not for profit organisation helping businesses throughout NZ in bridging the knowledge gaps in Supply Chain and Operations. NZPICS is an affiliate and Premium Channel Partner of APICS, USA. Over the past number of years, CPIM, Certified in Production and Inventory Management has been the flagship course of APICS and NZPICS. CPIM is still the No.1 choice for all those working in the front end of the supply chain such as Planning, Inventory Management and Production fields. Please note that when I refer to Supply

NZ Manufacturer March 2017

Chain, it means end to end, covering “Plan, Source, Make, Deliver and Return” aspects. But today APICS and NZPICS offer a range of courses to suit every level of staff in any organisation. 1) The Principles of Operations Management course was launched a few years ago to provide the foundational knowledge across the spectrum for Supervisors, Team Leaders and below. The beauty of this course is that, it is fully customisable. 2) The businesses can create their own tailored course by mixing and matching the modules and session topics to suit their requirements. 3) CPIM as above a mid level course for the front end of the supply chain

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4) CLTD, Certified in Logistics, Transportation and Distribution is the latest addition which was launched globally in July last year caters to the needs of the back end of the supply chain and is suitable for those working in logistics either in manufacturing industry or typical logistics businesses. 5) CSCP, Certified Supply Chain Professional was launched to provide mid to senior level managers a comprehensive course which focuses on the Supply Chain Design & Strategy, Planning & Execution and Continuous Improvement & Best Class Practices. 6) SCOR-P, Supply Chain Operations Reference Model Professional is for those who are keen to transform their businesses from a functional

oriented to a Process and Metrics Driven. SCOR is a global industry benchmark developed by the Supply Chain Council, which is now a part of APICS. So, whatever knowledge gaps you may have in your organisation, NZPICS could assist you to fill these. NZPICS offers, public and in-house courses and also offers extramural option. Contact NZPICS if you need any assistance on info@ nzpics. org.nz or visit their website, w w w . nzpics.org. nz

COMMENT

Even if you’re on the right track, you’ll get run over if you just sit there. - Will Rogers

Three trends for the future of manufacturing Continued innovation. Innovation creates new opportunities for manufacturing and the growth of the industry. In order to make the industry globally competitive, manufacturers must leverage new technology. We need to be innovative, adaptable, and accountable in order to take control of our future. By reinvesting in manufacturing, both small and large manufacturers will be positioned to create thousands of high-paying manufacturing jobs, as well as spin-off jobs in other sectors of the economy.

Public-private partnerships The link between manufacturing and economic growth is critical. Every dollar in final sales of manufactured products supports $1.33 in output from other sectors— this is the largest multiplier of any sector. Manufacturing investments create ripples across the economy, creating jobs and growth in other industries. But how can we support the manufacturing sector, and therefore the broader, economy at the dawn of the fourth industrial revolution? Research indicates three crucial factors: a focus on skills, continued innovation and technology, and more public-private partnerships.

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

A focus on skills As we enter the fourth industrial revolution and the role of technology increases, the skill set needed to work in the manufacturing industry increases – but many workers don’t get the chance to learn new skills and fill the void. As early as four years ago, the skills gap left 10 million manufacturing jobs worldwide that cannot be filled, and that number seems only to have increased since. The implications of such a shortage are significant; they can have a material impact on both workers’ employment and incomes, and manufacturers’ growth and profitability. But the situation can be reversed. CEOs and manufacturing executives around the world already identify

A skilled and educated workforce, or

talent-driven innovation as the number one determinant of competitiveness.

rather the lack of it, is the greatest

Manufacturers are looking to recruit highly skilled workers and are willing to pay more than the market rates in workforce areas reeling under talent crisis.

influence in global manufacturing.

If the skills gap can be closed, both workers and manufacturers can once again thrive.

to private sector standards, combined

The key to closing this growing skills gap is public-private partnership – where the education system provides industry-based training, and is aligned with

on-the-job

learning,

and

supported by public policy leaders and civil society.

The link between manufacturing and economic growth is critical.

Aligning

manufacturing

education

with industry standards sets high expectations

and

establishes

effective and critical talent pipeline. It is essential that policy-makers advocate for education and job training policies that strengthen the manufacturing workforce.

NZ MANUFACTURER • April 2017 Issue • Features

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SouthMACH 2017 Preview

New Products for Manufacturers

Industry 4.0

Regional Spotlight: Canterbury

Disruptive and Future Technologies

Smart Manufacturing

Improving Productivity Advertising Booking Deadline – 14 April 2017

Editorial material to be sent to :

Advertising Copy Deadline –14 April 2017

Doug Green,

Editorial Copy Deadline – 14 April 2017 Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz

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

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

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

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NZ Manufacturer March 2017

DEVELOPMENTS

Don’t be distracted by criticism. Remember – the only taste of success some people get is to take a bite out of you. – Zig Ziglar

Nanofibre strengthening in hot demand A New Zealand company is increasing its production output to meet growing world-wide demand for a nanofibre strengthening product used in everything from Formula One race cars and fishing rods through to the aerospace industry. Demand for Revolution Fibres’ Xantu.Layr, which is the world’s only commercially available nanofibre composite reinforcement veil, has increased dramatically as a result of extensive research and development conducted in 2016 which helped to further validate Xantu.Layr’s performance in composites. Nanofibre Applications Engineer, Dr. Gareth Beckermann, says significant advancements have been made by using nanofibre interleaving veils to increase the impact strength, delamination resistance and fatigue life of composites. “We are also increasingly seeing evidence that nanofibre veils outperform thermoplastic toughening

particles and microfibre veils, and nanofibre veils can also improve the mechanical properties of composites containing already toughened resin systems. “In some situations, the addition of lightweight nanofibre interleaving veils can improve delamination resistance by up to 170%, impact strength can be improved by up to 20%, and fatigue life can be improved by nearly 400%, all with negligible laminate weight and thickness gains. “Nanofibre veils can also be used for localised reinforcement as opposed to having to apply veils to the whole composite part,” he says. Revolution Fibres’ Operations Manager, Brent Tucker, says production capacity has recently doubled to meet the additional demand for Xantu.Layr for new and existing clients, which include Kilwell Fishing Rods and Kiwi Composites. For commercially sensitive reasons Revolution Fibres is unable to name

most companies it works with. However, the majority of them are in industries where extra high composite performance is required. “We expect 2017 to be a significant year for Xantu.Layr production as many clients are coming to the end of their R&D program cycles with positive results,” says Mr Tucker. “This increased production capacity is a huge benefit to all because it will lead to cost reductions, especially for customers wanting larger volumes.” In 2015 Revolution Fibres achieved its AS9100c certification, a quality assurance step that’s unprecedented in the nanofibre industry. This world-first certification provides internationally recognised assurance to customers that the systems and procedures behind the nanofibre production meet aerospace standards. On the back of the increased demand for Xantu.Layr, Revolution Fibres has launched a new website (www. xantulayr.com) which includes

essential product information and an E-Commerce platform to make purchasing the product simple. Revolution Fibres CEO, Iain Hosie, says the company’s aim now is to get more people using Xantu.Layr which is why it has introduced smaller quantity Hobby and Starter Packs to the range. “It’s an incredibly versatile material and our goal is to make it easier for designers, production engineers and hobbyists to purchase Xantu.Layr in smaller quantities and to give them greater access to the technology. “For some smaller composite users the 100m MOQ was a barrier but with the new Hobby and Starter packs it’s so much more accessible. It’s surprisingly easy to use, and it should be used more often for improving composites.” Revolution Fibres is interested in talking to distributors to spread the technology further, especially in Asia and the USA. “It’s a product that will fit well with a number of distributor’s product portfolios to provide a significant and unique offering for their clients. “We’re also keen to work with more carbon fibre pre-pregging companies to integrate Xantu.Layr directly into pre-preg materials as an additional toughening measure.” Revolution Fibres ground breaking electro-spinning technology creates nanofibre out of a range of synthetic and bio-derived polymers. Nanofibres are textiles made from super fine fibres between 100-500 nanometres in width (a human hair is 50,000 nm wide), and are made from a wide variety of polymers. These small fibres can create vast changes in mechanical strength, reactivity, and conductivity, among many other properties. Revolution Fibres led the commercialisation of nanofibre technology in New Zealand with product lines such as filters for HRV Next Generation ventilation systems, the anti-allergy pillow liner Nanodream, and high performance Kilwell fishing rods.

continued from page 1

Bringing back jobs of the past? is a resource-hungry activity and SMEs often struggle to get things changed on top of dealing with every-day challenges. The age structure in our manufacturing leadership, combined with and sometimes insufficient succession planning, is another factor

NZ Manufacturer March 2017

we cannot ignore. Having said all that, there remains the important factor in manufacturing of an ecosystem of capability and supply chains. While supply chains are more global than they have ever been,

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local supply chains remain vital to the success of manufacturing. This means that we need to maintain a solid base of diversified manufacturing capability capacity in New Zealand.

impossible to grow other forms of advanced manufacturing and production in the future that we need to create well paid jobs and earn export income.

Without

-Dieter Adam, NZMEA

that,

will

nearly

Accountability breeds response-ability. - Stephen R. Covey

COMPANY PROFILE

Mach 3 Engineering Health & Safety (H&S) has seen renewed focus in recent years and manufacturers have been adapting to new policy, advancing the safety of their businesses. Mach 3 Engineering, based out of Christchurch, have worked to put H&S towards the heart of their business, improving their own processes to get achieve better safety outcomes for their staff and using their expertise to offer engineering solutions that can help other manufacturers improve their safety. Mach 3 is a locally owned business that started in 2007, which manufacturers custom made goods and offers fabrication and engineering services, employing around 20 staff. The team is led by directors Anna and Jeremy Chapman. Anna has been a leading force to better understand how to improve H&S outcomes in their business, seeking out further education in the field. Their work in H&S has even earned them the ACC Workplace Safety Award at the Champion Canterbury Business Awards in 2016. “We have a diverse range of skills in the business, and we have had to diversify as the economy has changed

- for a while, we focused largely on dairy modifications as that sector was going through high growth. The reason we are here is because we diversified our business.” Said Anna. Mach 3 saw these H&S changes coming, highlighted by the Christchurch Earthquakes, and moved their business more in that direction, looking to extend their own knowledge in H&S, while using this to offer solutions to help other businesses.

finding ways to make manufacturing processes more user friendly and productive.”

a company’s existing guarding to make sure it meets the new safety standards.

“Everyone moves at different speeds and it can be tough early in the process, but at some point everyone does get on board. We did become pickier in terms of our new hires as a result. Overall, all this work has helped our business become more profitable and professional, helping us get more work. “ Said Anna.

Another product Mach 3 makes is called the Machrac, which is a custom built slider that can be added to Utes, to allow easy unloading and storage – an innovative solution led by Jeremy.

“The more we learn about H&S and apply it to our business, the more we see it has so much value. You feel better and see positive outcomes knowing you’re doing the best you can, and have looked into it.”

Mach 3 provide a number of products and services, one being their MachGuarding solutions. This is a custom perimeter fencing and nip point guarding solution that they design and manufacturer to suit each company’s needs.

“It’s about changing culture, and it has to start at the top. But it can’t be a dictatorship - we consult with our staff and have them feed into the process. Now they are coming up with their own ideas and as time goes on our staff see the benefit. The key is doing what you need to do while also

They can use their own knowledge to learn about their customers operations and work with machinery operators to ensure the guarding best suits the operating environment while improving safety and meeting standards. Mach 3 also offer their services to modify and upgrade

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Mach 3 also specialise in customized engineering solutions – they were featured on Grand Designs late last year, showcasing their architectural engineering capabilities using Corten panels and structural steel. Anna remains passionate about H&S in manufacturing and engineering businesses, and hopes they can work to help other businesses through sharing information and providing quality services. “I feel we have a responsibly to help others and share information on H&S, just like others who have helped us get to where we are.” Said Anna. If you would like to learn more about Mach 3, and their services and products, visit: http://mach3.co.nz/

NZ Manufacturer March 2017

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

Sandra Lukey

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

Phillip Wilson Chris Whittington

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

NZ Manufacturer March 2017

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

The dictionary is the only place where success comes before work. - Mark Twain

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NZ Manufacturer March 2017

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

Disruption not slowing down As the ‘speed’ of change accelerates, the sheer velocity of disruption facing engineering, property, construction and infrastructure organisations is only increasing, according to Giam Swiegers, Aurecon’s Global CEO, as he continues the firm’s investment focus on leadership, innovation and change. Swiegers, a big fan of multidisciplinary diversity, has made significant changes to the leadership cohort at Aurecon and two recent internationally recognised appointments will further boost Aurecon’s leadership gene pool. Starting on 30 January, Aurecon appointed energy guru Dr Alex Wonhas as Aurecon’s new Managing Director, Energy & Resources. Dr Wonhas was previously Executive Director at Australia’s national science agency, leading CSIRO’s environment, energy and resources sector where he oversaw research, development and demonstration activities, as well as the commercialisation of a range of fossil, renewable and demand management energy technologies. He was also a key member of the Government’s Expert Panel for its Energy White Papers. In a major boost to its Advisory practice, Dr Abe Nezamian – a globally recognised authority on infrastructure rehabilitation, asset integrity management and asset management in the mining, infrastructure and transport industries across Australia, the Middle East, UK, US, SE Asia and West Africa – was recently appointed Aurecon’s Global Leader in Asset Management, seen as a major growth area for Aurecon’s advisory business. “Smart businesses in the energy, property and infrastructure sectors understand our world is changing

and with it, the need to change leadership priorities, capabilities and work practices,” says Swiegers. “For Aurecon, this has meant focusing our workforce on quickly adapting and using smart technology or ‘infra tech’, exploring new ways of delivering mega projects, better managing the life cycle of existing major assets and of course upskilling our leadership and our talent across the globe as we prepare for a very different future. “The current wave of disruption is either a catalyst for a company’s downfall, or a clear call to harness its greatest brains to solve some of the biggest problems the world has ever seen. In future, those able to mobilise the creativity of a cross-disciplinary and cross-culturally diverse workforce in order to deliver competitive advantage will succeed in building globally successful and sustainable businesses. “Aurecon will continue to invest in strong leaders who provide not only eminence in their space, but have the leadership style, global mind-set and courage to lead amidst ongoing disruption,” says Swiegers. “These experts bring subject matter expertise and advisory capability to major growth markets for Aurecon and play an important role in developing our global teams to meet clients’ most significant and changing challenges.” A key advisor on energy security issues, Dr Wonhas, previously a member of

CEO Giam Swiegers

NZ Manufacturer March 2017

the executive team of CSIRO, was instrumental in expanding the Gas Industry Social and Environmental Research Alliance nationally and bringing in AGL, Origin and Santos as additional industry partners. He chaired the energy theme at the 2014 G20 Global Café in Brisbane, was a key member of the Federal Government’s expert panel of the 2012 and 2015 Energy White Papers, and also conceived the Future Grid Forum that brought together over 100 participants from across the whole electricity value chain to define its possible future, focus technology developments and inform regulatory processes. Similarly, eminent Dr Abe Nezamian, who held the ASME International Petroleum Technology Institute Award for global excellence consecutively from 2011-2016, is renowned for helping companies navigate industry change over the past decade, advising clients in mining, transport and infrastructure across the globe on asset integrity management and asset management. He is a widely published authority on asset condition assessment/ management and life extension, management strategy, decision support tools, OPEX/CAPEX optimisation and best in practice asset management programmes. He is also a task group (Strategy) Co-Chair for development of OGP (ISO SIM Global Standard), a member of ISOPE

Dr. Alex Wonhas www.nzmanufacturer.co.nz

scientific and technical committees and Chairman of the Global FPSO Integrity Management community. Giam Swiegers believes these appointments reflect Aurecon’s commitment to building the kind of cross-cultural, multidisciplinary and gender-equal workforce that will see smart businesses like Aurecon become future ready. The success of this strategy was highlighted late last year, when the firm was presented with the 2016 Australian Human Resources Institute Inclusive Workplace Award less than a week after also winning Engineers Australia’s highest honour possible: The Sir William Hudson Award for its revolutionary Brisbane’s Flood Recovery Ferry Terminals, clearly linking the two achievements. The Sir William Hudson Award recognises the most outstanding engineering project and is the highest accolade for a project-based award that Engineers Australia confers. The award follows further recognition for Aurecon’s creativity at the Consult Australia Awards for Excellence, where it won Gold in Design Innovation for 5 Martin Place, Sydney. “Both projects include ground breaking innovations and can be linked to an enhanced focus on cross-disciplinary collaboration, diversity of ideas and inclusive work practices,” says Swiegers.

Abe Nezamian

Your income is directly related to your philosophy, NOT the economy. – Jim Rohn

Seamless experience connecting industrial devices Gemalto, world leader in digital security, is supplying Com4, a dedicated M2M / IoT operator, with an On-Demand Connectivity solution that will support secure remote SIM provisioning in the fast growing Internet of Things (IoT) market. Gemalto’s solution enables Com4 to offer customers seamless out-of-the-box connectivity and over-the-air subscription management for a vast range of IoT devices and applications, commencing with Norway’s largest smart metering rollout. Gemalto’s On-Demand Connectivity solution is the world’s first embedded SIM (eSIM) subscription management solution to be compliant to the GSMA Security Accreditation Scheme (SAS). In conjunction with Gemalto’s GSMA-compliant eSIMs, it delivers robust end-to-end data protection for IoT ecosystems. Proven in over 20 deployments worldwide, the On-Demand

SFU-S20 Fingerprint Module Integrated in BioRugged’s BioWolf LE Tablet PC

Connectivity solution facilitates secure and interoperable support for virtually any type of consumer or industrial IoT device, across all networks. Subscriptions can be activated, updated and modified remotely over the complete product lifecycle, without ever needing to change the SIM. Gemalto already supplies Com4 with eSIMs, which are soldered into IoT devices at the manufacturing stage to facilitate rugged performance and highly streamlined logistics, installation and maintenance. Com4 is the first IoT operator in Europe to offer customers the peace of mind of a v3.1 GSMA security compliant eSIM subscription management.

Along with fingerprint authentication, BioWolf LE provides an array of specialised features including RFID, NFC, Mifare compliant, fingerprint sensor and full connectivity suite 2G, 3G and 4G.

Suprema, a global leader in biometrics and ID solutions, announced that the company’s SFU-S20 fingerprint modules are integrated in the new BioWolf LE, a rugged tablet PC from BioRugged. SFU-S20 is a FBI PIV and FAP20 certified USB fingerprint scanner designed to provide high-level biometric security solution for identity management applications. Protected by IP65-rated rugged structure, SFU-S20 features slim optical sensor with larger platen and latest anti-spoofing (live fingerprint detection) technology.

Upon its launching, BioWolf LE has already been selected for a number of public and commercial projects including SIM card registration (telco) in African countries. The BioWolf LE was built for various applications in mobile environment, and thanks to Suprema, adding high-precision fingerprint sensor and the convenience and security of biometrics is a core advantage of the product.

BioWolf LE is a rugged and versatile biometric table PC developed for various application including voter registration, logistics, health care, industrial protection and banking.

With billions of devices expected to join the IoT ecosystem in the next few years, Com4 is now ideally positioned to monetise this exciting opportunity to turning ‘things’ on with an offer that is as flexible as it is secure.

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

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

• Palletising/Packing • Machining • Labour Replacement

• Assembly • Labelling and Marking • Custom Processes

High Performance Industrial Robots

Production Solutions for SMEs

World Leading Collaborative Robots

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0508 ROBOTS

info@designenergy.co.nz

(0508 762 687)

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NZ Manufacturer March 2017

Build your own dreams, or someone else will hire you to build theirs. – Farrah Gray

Cameras reveal atomic structure of metal-organic Researchers at King Abdullah University of Science and Technology (KAUST), Saudi Arabia, have developed a method for fine-scale imaging of metal-organic frameworks (MOFs), three-dimensional structures made up of metal ions connected by organic ligands. MOFs are useful for gas storage and separation because they can be designed to have precise pore sizes of molecular dimensions and large void spaces (porosity) within their frameworks. Typically, high-resolution transmission electron microscopy (HRTEM) is used to visualize structures with atomic resolution; however, this method is unsuitable for observing MOFs because the electron beams destroy their structures. “To thoroughly understand the performance of metal-organic frameworks in various applications, we need to know their structures at the atomic level because their macroscopic behaviour is determined by their microscopic structure,” explained KAUST Associate Professor of Chemical

Science Yu Han. By visualising these structures, researchers can uncover important clues about how these materials self-assemble to create their trademark pores. Several members of the University’s Advanced Membranes and Porous Materials Center, including Han’s research scientist and first author of the paper, Yihan Zhu, Associate Professor of Chemical and Biological Engineering Zhiping Lai and Professor of Chemical and Biological Engineering and Director of the Centre Ingo Pinnau, joined forces with the University’s Imaging and Characterisation Core Lab and with colleagues from Gatan, Lawrence Berkeley National Laboratory and others in China. Their collaboration resulted in an adaptation of HRTEM using state-of-the-art direct-detection electron-counting cameras. The high sensitivity of these detectors enabled them to acquire images with an electron dose low enough that it does not damage the structure of MOFs, allowing the group to produce

Symmetry-imposed and lattice-averaged HRTEM image of the metal–organic framework ZIF-8 (black and white) with a structural model overlaid to show the position of the zinc ions and organic ligands (in colour).

high-resolution images of their atomic structures.

This helped the researchers to reveal

The team applied their method to ZIF-8, a MOF comprising zinc ions connected by organic 2-methylimidazole linkers. They were able to image its structure with a resolution of 0.21 nanometers (one nanometer is one billionth of a metre), a resolution high enough to image the individual columns of zinc atoms and organic linkers.

ZIF-8 crystals. “The results unravelled

the surface and interfacial structures of that

porosity

generated

the

interfaces of ZIF-8 crystals is different from the intrinsic porosity of ZIF-8, which influences how gas molecules transport in ZIF-8 crystals,” explained Han.

Kineo version 5.0 released Version 5.0 of Kineo software components for path planning, collision detection and cable simulation is now available. Major new developments include: Kineo Flexible Cables The first release of this new software component has been developed with a specific focus on applications

in robotics. The cables that power articulated robot systems are prone to failure as a result of repeated stress and collisions in the operating environment. These risks are minimised by optimising dynamic cable performance and reducing material stresses in a virtual prototype. KineoWorks Interact Building applications that benefit from software components for path-planning, collision detection and cable simulation is easier than ever with the launch of KineoWorks Interact.

Kineo Flexible Cables enable you to model collision-free cable behaviour in motion simulation applications

This user-friendly tool enables you to customise a rich graphical user interface for developing your own sophisticated application based on our

technologies. KineoWorks interact is perfect for OEMs and System Integrators with limited software development resources, who recognise the value in developing state-of-the-art software solutions for robot simulation, digital mock-up, accessibility studies and related applications. KineoWorks and Kineo Collision Detector KineoWorks now offers an integrated tool for computing an envelope around static and moving parts. In the case of static parts or assemblies, this “wrapping” capability generates very light-weight data representations. User-defined levels of tessellation enable you to represent space

allocation, without exposing confidential product detail. In the case of moving parts, a comprehensive “swept volume” enables you to determine space allocation for moving parts. Kineo Collision Detector now offers direct support for collision and clearance analysis on point clouds, with no need to convert the point cloud data. Both components also benefit from a new C# interface, support Visual Studio 2015 as well as compatibility with the new KineoWorks Interact product for developing rich applications quickly and easily.

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

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NZ Manufacturer March 2017

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It is never too late to be what you might have been. – George Eliot

Innovative zero-gravity arms recognised by construction company Headquartered in Hong Kong, Gammon Construction is one of SE Asia’s leading construction companies, with an annual turnover of US$2.5bn, and is a keen adopter of new technology with a focus on adding value for its customers through innovative and sustainable solutions. With over 8000 employees, the engineering and construction company, like others in the Hong Kong construction industry, has long faced manpower shortages, together with an aging workforce. Consequently, in an effort to lure talented new workers and to reduce the workload of its employees, the company recently invested in two sets of “zero-gravity arms” (Zero G Tool Arms) from Sigma Ergonomics, one of Australia’s leading providers of ergonomic systems to a wide range of industries. Manufactured by US company Ekso Bionics, the innovative mounted exoskeletal system functions without the need for power, allowing workers to comfortably operate heavy tools including impact drills, chipping hammers and grinders for extended periods. With the zero-gravity arms shouldering the weight of the equipment, workers are not affected by the strain and fatigue caused by repetitive tasks

such as drilling, tiling, chipping and grinding. The Ekso Bionics Aerial System, to which the Zero G system is mounted, is designed to increase safety and productivity while working from an elevated work platform (EWP). As well as eliminating the risk of dropping heavy tools from heights, the system significantly reduces the risk of injury from heavy tool usage and awkward body position. In a recent direct comparison with an Access Work Platform (AWP) at a height services installation, the Zero G system improved the productivity of the drilling work task by over 50% while reducing worker fatigue and improving safety and efficiency. Thomas Ho, Chief Executive of Gammon Construction, is a passionate supporter of innovation and highlights the Zero G system as one of the latest innovations introduced into his organisation. Andy Wong, Gammon Construction’s Innovation manager, explained that the Ekso Bionics Aerial Systems has been successfully deployed at a construction site of a data centre in Hong Kong’s Tseung Kwan O district and at a transport terminus in Kowloon, with very positive feedback from workers and their managers.

He said the workers recognised the many benefits the Zero G system offered including ease of use, comfortable to operate and an ergonomic design. “Following the success of the Ekso Bionics Aerial Systems, we plan to expand the trial scheme to several other of our work sites in the region,” Mr Wong said. Tony Brooks, director of Sigma Ergonomics explained that Ekso Bionics has spent several years designing and perfecting a range of ergonomic tool arms which are used to weightlessly manoeuvre heavy tools. “Already proven across the world, the arms rely on spring tension and an innovative design to balance the weight of tools used in drilling, sanding, riveting and many other applications. “The Ekso Bionics Zero G arms are designed to hold tool payloads of up to 19kg and fully balance the weight thus allowing the user to freely, safely and accurately manoeuvre the load in any direction without injury or fatigue.”

gantries, carts, jib arms and linear rails. “As well, these systems require very little maintenance, no expensive inputs like electricity or compressed air, and have already been successfully used in a variety of industries from aerospace and defence to automotive manufacturing. “With Ekso Bionics’ innovative exoskeleton technology, workers can now complete heavy hand tool tasks with less fatigue, better workmanship and fewer workplace injuries. Plus companies often enjoy a high ROI, sometimes less than a year, making the decision to invest that much easier,” Mr Brooks concluded.

Requiring less than 30 minutes of operator training to achieve competency, Mr Brooks explained that the ergonomic tool arms have a variety of mounting options to suit the application including portable

Promapp process management software supports global expansion Medifab, a leading New Zealand headquartered medical device company, has announced the deployment of Promapp’s cloud-based business process management software to support the company’s global expansion as well as compliance with the US Food and Drug Administration and international quality standards Medifab’s products make a positive difference to the lives of persons with a disability through the provision of leading edge postural support solutions for a wide range of special needs. It offers more than 130 products which include everything from wheelchairs, standing aids, beds and bathroom aids through to strollers and push chairs,

indoor seating, car seats and harnesses. Operating in a highly regulated industry, the company must comply with significant quality systems and regulatory requirements to meet its customers’ needs. These requirements are intended to ensure that Medifab consistently designs, produces and markets medical devices that are safe and effective for their intended purpose. Indeed, the latest revisions in global quality standards and regulations has meant an increased emphasis and focus at Medifab to identify and manage its product and business risks. In recent years the company’s manufacturing and operations centre has been certified to the ISO 9001 Quality System and ISO 14001 Environment Management standard. However, Medifab’s growth and business plans to export to overseas markets requires compliance with specific Medical Device regulations, in particular ISO 13485 (Medial Devices Quality management systems – Requirements for regulatory purposes) and the USA FDA’s Current Good Manufacturing Practice (CGMP) regulations, 21 CFR 820.

These regulations govern the methods and controls Medifab uses to design, manufacture, package, label, store, distribute and service its products. Finding the Right Solution Medifab went to market for a solution which would support the organisation’s ability to meet the requirements of the global market. A business process management tool would also support the creation of the right culture and structure to support the transition of the business from a service-based company to a global manufacturer. Innovation and product development would in turn need the support of sophisticated processes which could be easily understood and maintained by everyone in the business. More than 300 Process Improvements Underway in Six Months Since seamlessly launching Promapp throughout the business in September last year, Medifab has published 42 processes and actioned over 300 improvements. This has significantly raised the level of collaboration among different teams and helped the company to improve performance

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to meet customers’ expectations while setting it up to start the formal ISO 13485 certification process. While Medifab currently uses ISO 14971 (Medical devices -- Application of risk management to medical devices) as a key component in its business and product development processes, Promapp’s Risk Management module and associated workflow makes this requirement straightforward to manage and administer. Medifab is also using Promapp’s Improvement module to record and manage customer feedback, complaints, internal non-conformances, engineering change requests and opportunities for improvement. Promapp’s built in workflow allows users to easily manage and monitor the timely closure of these opportunities and incidents. In addition, being a web based system means that Promapp is accessible from any device in any location. It can also integrate with other systems which makes the investment in processes sustainable. At the same time, sharing processes through their ERP and CRM systems promotes higher frequency viewing of processes.

NZ Manufacturer March 2017

FOOD MANUFACTURING - CLIMATE CHANGE Severe heatwaves show the need to adapt livestock management for climate Food manufacturing is significant to the New Zealand economy. Changing weather patterns – climate change – will cause us to rethink what we grow and sell on domestic and overseas markets. This article from Australia is worth a read as it describes what our largest partner is currently going through. – Ed.

Elisabeth Vogel

Christin Meyer

Richard Eckard

PhD Student, University of Melbourne

PhD student, Potsdam Institute for Climate Impact Research

Professor & Director, Primary Industries Climate Challenges Centre, University of Melbourne

Climate change and extreme weather events are already impacting our food, from meat and vegetables, right through to wine. In our series on the Climate and Food, we’re looking at what this means for the food chain. During the recent heatwave in New South Wales, which saw record-breaking temperatures for two days in a row, 40 dairy cows died in Shoalhaven, a city just south of Sydney. Climate change doubled the likelihood of this kind of record-breaking heatwave. And even the higher minimum temperatures we’ve recently experienced may soon be the “new normal” for this time of the year.

droughts, as they are less predictable and much more difficult to adapt to than gradual changes. Dairy cows are particularly affected by heatwaves, which can not only reduce milk production, but, as the NSW heatwave illustrated, cause illness or death. Further, the effects on milk production and the protein content of

the milk can last for several weeks. Similar to humans, instances of high relative air humidity and little wind worsen the negative effects of high temperatures on livestock. When this occurs, the animals cannot easily offload excess heat through transpiration. This is compounded when there is little or no cloud cover,

as the cattle are exposed to more solar radiation. Milk production is also impacted by night-time temperatures and the timing of the heatwave. When night-time temperatures are high, cows cannot offload excess heat. If a heatwave occurs after the cows’ peak of lactation, milk production is less

Farmers that already find it difficult to make a profit will need to adapt to these changing conditions, ensuring they mitigate the effects on their livestock. This could take the form of more shade and shelter, but also the selection of different breeds to suit the conditions.

What’s happening? Cattle are vulnerable to changes in rainfall patterns (variability and extremes), temperature (average and extremes), humidity, and evaporation. These climactic changes can affect livestock directly, and also indirectly through pasture growth, forage crop quantity and quality, the production and price of feed-grain as well as spatial changes in disease and pest distribution. The greatest risks stem from extreme events such as heatwaves and

Milk production from a commercial dairy herd in west Gippsland dropped for several weeks after days of severe heat stress. Richard Eckard, Author provided

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NZ Manufacturer March 2017

Leadership is the art of getting someone else to do something you want done because he wants to do it. – Dwight Eisenhower

likely to recover and the impact is even worse. The response of cattle to heat stress also depends on the breed. This can differ as a result of, among other things, differences in metabolic rate, sweating rate, coat texture and colour. Researchers have even identified a “slick hair gene”, responsible for producing cattle with shorter, slicker hair that reduces their vulnerability to direct radiative heat. The full benefits of the slick gene still require more research as a strategy for animals to cope in future climates. Sheep are generally less affected by high temperatures than dairy cows. However, heatwaves with temperatures beyond 40℃ can cause heat stress. Hot days may have short-term impacts on rams’ fertility, and recently shorn sheep are at risk of sunburn if they are exposed to direct sunlight. Factors that are unique to each individual animal, such as previous heat exposure and overall health and age, also play a role in how vulnerable they are to heat.

Mitigation In the short run, farmers can mitigate the worst of these issues by providing high-quality water and shade (such as from trees, buildings, and shade

cloth) in the heat, warm shelter in the cold, and by adjusting feed. During heatwaves, farmers can also adjust milking procedures and milk their cows very early in the morning or late at night. To provide immediate cooling they can also use sprinklers or misting systems. But care is needed to avoid simply increasing humidity around the animals.

But for these strategies to really be effective, farmers need more information. This includes accurate and timely

weather forecasts, seasonal outlooks of rainfall and temperature, and the current water balance and soil moisture information. There’s also the the Cool Cows website, the Dairy

A more long-term option is to selectively choose breeds that are better adapted to higher temperatures (such as breeds with lighter coat colour or Bos indicus types or crosses). Unfortunately, breeds adapted to warmer climates, such as the Brahman, tend not to be high milk producers or to do as well in feedlots as the traditional British beef breeds, so there will be a hit to productivity.

As the impact of climate change isn’t solely on the animals themselves, farmers will also have to adjust their work patterns and other aspects of their operations. To cope with heat, farmers themselves may need to consider working more during the cooler hours of the day. Farming both crops and livestock together can also provide a buffer against the impact of an extreme event.

forecasts of weather (temperature, rainfall, solar radiation) and heat (such as the temperature humidity index, THI) at daily, weekly and seasonal scales. Armed with this data, farmers and livestock managers can effectively plan and implement protection measures ahead of time.

The combined production of wheat and wool is a typical example of spreading of risk on farm.

A wide range of agricultural, climate and weather services exist. For example, the Bureau of Meteorology

Mitigation can be as simple as providing a bit of shade. Shutterstock

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Forecast Service and the Cattle heat load toolbox. We also need more research into improving our understanding of the climate system, to develop risk management plans for industries by regions, and more accurate and reliable forecasts, so that farmers and livestock managers can make management decisions and ensure the wellbeing of themselves and their animals.

NZ Manufacturer March 2017

MAINTENANCE MANAGEMENT The chaos theory of maintenance management The fact that you have read past the title suggests that a nerve is already twitching when maintenance and chaos is used in the same sentence. Let’s just leave it out there that perhaps the non-performance (in actual, management or political terms) of your maintenance department has irked you at some time. So why is it that so many maintenance departments in industry become embroiled in stress, finger pointing and sweaty KPI’s? What makes plant reliability so difficult to manage? Simple. Humans. Even more than that, maintenance engineering humans. We will come back to that thought later. I have spent many years guiding sites and companies towards maintenance excellence and have been fortunate to be involved in success stories measured in reliability, profits and satisfaction. But I have also seen efforts doomed to failure from the outset or railroaded by changes in management. So what makes the difference?

Systems and processes I have seen attempts, (some of them lauded internationally) that start out with the highest academic processes and the sexiest 3 letter acronyms. High Priests and converts spout dramatic factors from on high whilst gathering their medals. The acid test is when you scratch the surface of the site 1-2 years later; are the maintenance plans really being actioned? Is life continuously learning and improving? Far too often the answer is a resounding NO. It is one thing to create fabulous maintenance plans and even better if you install a flash computerised maintenance management system to run them, but it is the systems and processes of running your maintenance management that true success will live and die by. Back to the humans. After meticulous study of mislaid perfect plans, I have made an earth shattering psychological discovery. I will call it “The Carlyle Effect” (all modesty intended). Here it is:

Maintenance Engineers do not like being systemised It’s true. If you work in a manufacturing process you get it; the need to have systems and processes to prevent chaos. Even tradesmen working in engineering manufacturing get it; there is a plan – I need to work to it. But your average run of the mill Maintenance Department tradesman is hard coded to lean towards chaos.

NZ Manufacturer March 2017

Leave him to graze naturally and he will devolve to firefighting and squeaky door priorities as quick as look at you. Give him a maintenance schedule and he will quickly shovel the hard jobs to the backlog and wonder off to do the favoured jobs.

• Your customers don’t have a lot of faith in your widget making ability and would go elsewhere if they could.

And when something does break, watch him squeal onto the job, sirens and lights blazing, to save the day with his mission critical skills.

• You spend most of your time explaining to customers why the promised widgets were not made or why they broke straight away.

Smaller sites will display the “irreplaceable engineer” syndrome; Mr. Fixit who may appear to have the site running perfectly, but has all the

• Your widget makers spend most of their time waiting for widget parts or access to the widget making machines.

• There is no formal widget making schedule. It pretty much works on who’s yelling at you the loudest.

If you work in a manufacturing process you get it; the need to have systems and processes to prevent chaos. info locked in his head. What value does he REALLY offer you? By the same genetic path that drew him to like fixing broken things, he is averse to being told what to do and when to do it. He wants to make his own choices. Sound familiar? Let me elucidate further by couching maintenance management in manufacturing (widget) terms: You manage a team of (maintenance) widget makers:

blue

• Your customers don’t really understand blue widgets but they do like red (non maintenance) so they flood you with red widget orders. • No one seems to care that you make more red widgets than blue. • You have a backlog of widgets that you will never achieve.

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• You need a massive store of widget parts because you never know which widget you might need to work on next. o • If you did give your widget makers a list of widgets to make they would pick out the nice-to-do widgets and leave the rest for the “back log”. • Some widget makers ignore the widget schedule and just make what they think is best. • Some widget makers have learnt lots about making widgets over the years but they keep it all in their heads as their own little insurance scheme.

retire as the place won’t run without him. This is the Chaos Theory of Maintenance Management and unfortunately I bet you recognise it. You certainly wouldn’t last long in business running processes like this. So why do we accept it in maintenance management? If you are happy with chaos theory in your process, stop reading now, I am happy for you. Maybe not happy for your shareholders, but you go for it! While it lasts. My apologies to our maintenance engineering humans. There is nothing wrong with them, not in the slightest. It’s just that the very skill set that makes them good reactive maintenance engineers almost precludes them from accepting proactive systems and processes. There is however absolutely no reason in the modern environment that the maintenance function cannot be run with the same accuracy, predictability and transparency as a manufacturing process. The good news is that it also does not require expensive resources and is simple to achieve. The reason why even the holiest systems will devolve to this level is the lack of formalised systems and processes. All it takes is negative culture and weak management to quickly undo years of positive work. In order to improve maintenance management performance for the long term, the site must develop the maintenance scheduling systems and processes as a primary step before attempting to introduce maintenance planning disciplines. Put another way, why have a plan if you are not going to action it? Put in the simplest terms, a truly successful maintenance management system will aim to put the right man on the right job at the right time with the right resources. This is the essential difference between Maintenance Planning and Maintenance Scheduling. Let me describe a healthy maintenance management system:

• Your budget is grossly overspent and you are unable to make all the blue widgets you need.

• It has well developed maintenance plans utilising just-in-time resourcing instead of high inventory stores.

• You seem to be forever repeating the same widget making mistakes.

• Maintenance plans are fully optimised and bankable, based on evolved condition prediction and trades-confirmed resource

• The Chief widget maker can never

Never ever give up. Today is hard, tomorrow will be worse, but the day after tomorrow will be sunshine. - Jack Ma, founder, Alibaba.

requirements. • Maintenance is the priority because our maintenance plans have evolved away from feel good periodic checks to optimised invasion points. • The maintenance scheduling function adds approved non maintenance and corrective maintenance tasks to the existing planned maintenance schedule. • The schedule is a reality driven rolling document that reflects the real site capability (Reality Schedule), (normally on a week by week basis). The reality schedule does not have nice-to-do tasks but only tasks expected to be auctioned. • The tradesmen understand and work to a 100% schedule achievement. Non achievement is the exception, not the rule.

If you work in isolation, a great starting point is by talking to your peers and mentors at the Maintenance Engineering Society (MESNZ).

Zealand. That is why MESNZ receives my full support. MESNZ seeks to encourage engineers to share their experience and achievements. The society achieves this by recounting its collective experiences and inspirations to maintenance engineers throughout the country, via print, mentoring, the National Maintenance Engineering Conference or connecting companies with practitioners.

MESNZ strives to support and lift the game of maintenance engineers in New

Craig Carlyle

There are some distinct steps along the way and embedded cultures that you might have to stomp on, but the rewards are enormous, in dollar and self esteem terms. If I haven’t touched a nerve, then good on you. You either have your act together and are already a white knight of engineering, or are blissfully unaware of a world outside of the trench.

Introducing

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

• There is NO backlog. How can you do a job last week? Unachieved tasks are put back into the forward schedule. • The operation understands the professionalism of the maintenance plans and processes and considers the schedule as bankable. They strive to make the plant available as the consequences of deferral are understood. Sound wacky? Think about it in terms of running a manufacturing process. Strangely, the hardest thing to achieve above is the man management, which is where your systems and processes meet culture and management. It looks hard so it must be. Damn right. Moving site cultures away from comfort points is always going to stand on some toes. This may sound like total fantasy on your site but the challenge to you is to stand up and make it happen. If making the journey to maintenance excellence appeals to you, here are my top five foundation steps to success:

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

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

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

1. Publicly state that you are going to create a professional and proactive maintenance function. 2. Define the difference between maintenance and non-maintenance tasks. (What are you here to do?)

Why the Need for inSight™?

3. Engage support for your processes from the highest level of your operation.

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

4. Make sure you are rewarding your staff for success, not failure.

inSight™ makes sense because: • You want to know more about the food you are eating

5. Engage the entire operation in your systems and processes. Formalise it, Live it, breathe it, back it. The journey from “ok” to “excellence” is not that difficult and does not take a lot of expense, training, resources or tools. It takes the cheapest, most effective resource out there, ATTITUDE.

A new innovation taking product assurances into the 21st Century

Freephone 0508 00 11 22 | www.aqinsight.com

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NZ Manufacturer March 2017

NEW PRODUCTS FOR MANUFACTURERS

One finds limits by pushing them. – Herbert Simon

Smaller cylinder packs more punch SMC is helping customers meet the demand for space saving components that drive down costs and drive up productivity, with the launch of two compact cylinders. The company announced the launch of their new next generation product, the J Series, which will be showcased at Auspack 2017 for the first time in Australia. SMC’s latest compact cylinders, the JMGP guide cylinder and the compact JCQ Series, have been designed with weight and space savings in mind. Both help to reduce machine sizes and costs, and deliver increased efficiency due to their lightweight nature which could enhance cycle time. Making its first debut appearance in Australia since its release, Tony feels the product will receive considerable interest from the market. By developing the product in response to customers operating conditions, it is possible to achieve a more compact body for the product. An investigation survey completed on customer operations revealed that it is possible to cover large parts of the market with

half of the current capacity. Therefore, the new products match market demand. It is possible to increase the cylinder size using the same footprint as an existing product. By increasing the cylinder tube size, the operating pressure can be reduced and performance maintained, which leads to energy conservation. Intermediate sizes are available, which means the footprint of the product can be reduced and performance maintained. The background of the product development comes from a market survey, which showed that users required more compact and optimised cylinders with regards to performance and cylinder size, whilst also wishing to reduce the energy required. The JMGP is a guide cylinder, featuring a dual rod, which has been designed for a variety of applications including pushing, clamping and lifting where there are space and weight restrictions in a transport line or for robotic manipulation and handling. The compact JCQ is ideal for similar applications where a short cylinder

is required, but without the guiding capability. As a result of the survey, it turned out that approximately half of the users put more importance on the output instead of guide strength. Very suitable for applications where pushing, lifting and clamping is required, the product is available in three mounting options with four possible piping directions. With space being at a premium in many manufacturing plants, the need to produce smaller, more efficient

machinery is growing. These two new models achieve just that, as they are both smaller than similar cylinders on the market. Being lighter in weight, they also achieve improved cycle times and help to deliver higher output. It is investments in R&D and new products such as the J-Series which has seen this Japanese multinational win the Forbes Innovation Prize for a third time. Visit SMC at stand 57.

Advanced plastics benefit food and beverage specialists Food and beverage specialists Engineering & Export Services are benefitting from the high quality products and service provided by Cut To Size Plastics, a national leader in Ultra High Molecular Weight Polyethylene (UHMWPE) and other advanced plastics products. Engineering & Export Services uses the plastics, which include UHMWPE, High Density Polyethylene (HDPE), Acetal and Nylon, for machine components and wear parts in conveyors, cutting boards and wear strips for the food and beverage industry. “In addition to the plastics being of a high quality, Cut To Size always has good stock availability at affordable prices. Their staff are willing to go the extra mile when we need materials in a hurry, which is incredibly valuable to us,” says Mr Craig Marchant, General Manager, Engineering & Export Services. “We supply components used to build conveyors for industries like chicken, meat and bottling, so we need a reliable plastics supplier,” said Mr Marchant, whose business is a family owned company established in 1962. Engineering & Export Services sell to major food and beverage companies like Coca-Cola Amatil, Lion and Asahi (Schweppes) Australia.

NZ Manufacturer March 2017

Cut To Size Plastics has more than 35 years’ experience in manufacturing components for applications across the Asia-Pacific from its head office in Sydney where facilities include CNC machining coupled with GibbsCAM™ and Solidworks™ software. It also offers in-depth advice on the best product for particular jobs. The company specialises in UHMWPE, which has a high strength, chemical corrosion resistance as well as high slip and self-lubricating properties, making it one of the toughest and most versatile thermoplastics in the world. Cut To Size NSW Manager, Pat Flood says that UHMWPE is ideal for the food and beverage industry. “For a start, it’s odourless, tasteless, and nontoxic. But what makes it even more useful is the high slip, self-lubricating properties, which mean that no food, liquid or waste gets caught in conveyor parts, for example. This saves a lot of maintenance, repairs and downtime in the long run,” said Mr Flood. Other food and beverage plastics HDPE has excellent impact strength and can be easily formed and machined using conventional equipment. It is commonly used in the production of plastic bottles and can be recycled after use.

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Cut To Size’s plastic used in a bottling application for Engineering and Export Services

Wearace™ Acetal has high strength and rigidity as well as good sliding properties and wear resistance at low moisture absorption, making it an ideal plastic for wheels and rollers. It is also suitable for food contact applications in its natural form. Wearlon™ Nylon has very high wear

resistance and good machinability, making it an ideal component for sprockets, bearings, chain wheels and guides. It comes in a range of different Polyamides (PA) to suit different applications. Further details can be found on the Cut To Size website (www.cuttosize.com.au).

There is one rule for the industrialist and that is: make the best quality goods possible at the lowest cost possible, paying the highest wages possible. – Henry Ford

INDUSTRY 4.0

Eion Musk recently met with Australian government and private sector representatives to offer support for solving South Australia’s energy problems. However, we focus in this article on manufacturing electric vehicles for the masses – and at what cost. -ed.

Elon Musk’s Brave New World Is Tesla, with its tightly integrated supply chain, following the strategy of another one-time dominant automaker – the Ford Motor Company – of over 100 years ago? Can it revolutionise the world by making an affordable electric car for the masses, much the way Henry Ford did with the Model T in 1908?

driveway in 84 hours!

Henry Ford took control of his supply chain and made his own parts rather than buy from suppliers, which gave the company the scale needed to improve performance and lower costs. Now Musk is building a new “giga” battery factory, giving Tesla more control over this strategic component. Will it work out the same as for Ford?

Prior to the Model T, the typical car’s sticker price would often hit US$2,000, or almost five years of wages, which put cars out of reach for all but the rich. Working to make his car affordable, Ford sold the Model T for $260 by 1926, leading to massive market share – over 50% of the automobiles on the road worldwide were Ford’s.

Putting Ford in the black

Ford also paid his workers a startling $5 per day to reduce employee turnover.

In his 1926 book, Today and Tomorrow, Ford claimed his integrated approach was the key to his success (“if you want it done right, do it yourself”). In fact, he claimed to mine iron ore in Minnesota, ship it to the famous River Rouge facility in Detroit and have it sitting as a Model T in a Chicago

However, at the time, complete standardisation (yes, Ford is said to have stated “You could have any colour you wanted as long as it was black”) was necessary to make this happen. No options were available as they are for today’s cars, but standardisation led to lower prices.

By this time the average working household income had reached about $1,300 per year. That put the Model T at two to four months of a typical factory worker’s wages, something comparable to or less than today’s economy car!

Huxley’s Brave New World and Fordism Ford’s significance can even be seen in Huxley’s classic futuristic science fiction work Brave New World from 1932. Huxley anticipated a world with intercontinental rocket plane travel and TV networks, Putting folding roofs onto Model T’s in 1915: part of Henry Ford’s in vitro fertilisation, moving assembly line and standardised work process. cloning and genetic

engineering. Huxley also saw Ford’s approach to be so central to the future that Fordism – Ford’s system of mass production – would become the primary religion!

Ford was right about vertical integration and combining production with engineering. -Eion Musk Huxley correctly saw so many things to come, yet clearly, we don’t all worship Henry Ford today. So why did this prediction not come true? Maybe it is because not long after the book was written, the growing design complexity of cars and the demands of customers made Ford’s black-only Model T no longer competitive. To offer multiple lines of vehicles and options, Ford’s integrated supply chain had to be broken into separate companies supplying specialised sets of products. No one company could handle it all. Yet by the 1980s, local area networks meant computers could autonomously control machines and make multiple products from the same facility at relatively low costs. Then in the 1990s, the internet made physical proximity unnecessary for achieving economies of scale since manufacturers didn’t need to control every component in the supply chain. What Huxley missed, in other words, was the impact of computers and IT innovations, considered one of the key facilitators to modern supply chain management.

What can Musk learn from Ford? Let’s roll the clock ahead 100 years. Elon Musk and Tesla Motors are looking to bring the electric car to the masses much the way Ford did with the Model T. Parallels include decisions to build a “giga” factory to make batteries that are currently sourced from Panasonic

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W. Rocky Newman Professor of Management, Farmer School of Business , Miami University in Japan, paying a premium wage to workers to reduce turnover, and planning to make an electric vehicle priced for the mass market – the upcoming Model 3. Even model names – Tesla sells the Model S and soon the Model X – may be more than coincidental. Will it work for Tesla the way it worked for Ford? Does today’s technology allow Tesla to do even more than Ford? The battery pack is the single most important and expensive component in an electric car. A battery can exceed $15,000 per vehicle (or $500 per kilowatt-hour. The Nissan Leaf electric car has a 24-kilowatt-hour battery and has an average range of 84 miles. Some industry experts believe batteries need to cost about $100 per kilowatt-hour and have almost triple the current range to be truly mass market. Achieving that sort of reduction in cost and improvement in performance comes from manufacturing at greater scale, rather than relying to suppliers. In other words, as Tesla makes more batteries, it gains more opportunities to refine production and product design. Ford found that out, and Tesla will as well. It plans to use most of the “giga” factory capacity in Reno, Nevada to supply Tesla’s auto assembly plant in Fremont, California, but also make batteries for utilities, homes and businesses. Because there are common battery designs and production, Tesla will be able to transfer any product and process improvements between batteries for vehicles and the grid. Tesla estimates that they will reduce battery costs by over 30% with the “giga” factory. Claims that Tesla with pay an average of $25 per hour in Reno have not been

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COMMENT

Never interrupt your enemy when he is making a mistake. – Napoleon Bonaparte

Is your talent management strategy ready for the global skills gap? By Alexandre Pachulski, Co-Founder of Talentsoft Our global economy has begun yet another transformation. We are in the early stages of a fourth industrial revolution that will bring major changes to our societies, driven by advances in connectivity, automation, and artificial intelligence. With that, has come a global gap in the skilled talent necessary to keep pace. As expert Klaus Schwab, puts it, “the changes are so profound that, from a perspective of human history, there has never been a time of greater promise or potential peril.” So how do we fulfill this great promise? A critical piece involves rethinking how we cultivate and manage the talent whom will be leading us forward; whom we will reply upon to innovate, deliver, and maintain these unprecedented developments in technology? The greatest promises of technology cannot be realised without human talent. For that technology to grow and for our economies to thrive, we must be aware of and work to bridge the widening global gap in qualified talent, particularly in manufacturing

and STEM-dependent careers, which are central to this latest industrial revolution.

are connected and technologies are integrated.

There’s an exciting opportunity for forward-thinking leaders to be proactive—especially those in HR, as they are often at the centre of their company’s talent management strategy.

Traditional training methods and annual reviews need to be reevaluated; ongoing learning is no longer optional. Occasional assessments are not enough to sustain momentum for growth. Leaders need a system for preparing employees and even prospective talent to assume more advanced positions. It’s also an ideal opportunity to nurture a culture of curiosity and strategic risk-taking. When people are encouraged to grow and learn new skills, they are able to contribute much more.

The first step for leadership is to assess where they are right now and what changes need to be made to compete effectively in this new era. Leaders who can readily embrace new technologies and strategies will have a significant advantage over those who don’t. Key areas to assess are: Integration and Connectivity The pace of business and reliance on real-time data insists that companies embrace cloud-based technologies and software that can connect easily to existing solutions. Teams needs to be able to work from centralized data so decisions can made from up-to-date information; that data needs to be both easy to secure and accessible. With globalisation, talent pools are now oceans—it’s imperative that teams

Training and Appraisals

As technologies continue to develop and automation increases, employees will bring value through their creativity and critical thinking skills—talent that cannot be replicated by machines. Recruiting and Development There is a sea change happening as older generations transition into retirement and Millennials will soon to make up at least half the workforce. This younger generation has a very different set of desires and expectations for the work they do.

They have grown up with technology and social media. They are used to communicating and connecting in different ways. Companies need to understand whom they’re trying to attract and meet them where they are. With more jobs available than talent to fill them, companies will need to be forward-thinking and creative in terms of recruiting. This revolutionary time calls for a modern way of engaging. It is human nature to resist change and fear major changes. That’s what makes HR leaders especially qualified to spearhead the development of their company’s talent management strategy; they understand human complexities and work to serve human needs on a daily basis. All the automation and artificial intelligence available can’t replace the critical need for leadership to recognise both the obstacles and opportunities to come. Fulfilling our greatest promise in the coming years depends on the actions we choose now. *Alexandre Pachulski serves as the Chief Product Officer at Talentsoft.

Elon Musk’s Brave New World continued confirmed by the company, but the ability to retain high-calibre workers is necessary to leverage the accelerated experience that comes from scale into lower costs and improved design. Ford demonstrated that a long time ago. Tesla appears to have learned that lesson.

What will it take to be the Next Model T (or Model 3!)? Musk’s public goal of 500,000 cars per year and a $35,000 price tag on the Model 3 will need every bit of output and resulting innovation the “giga” factory creates. Ford’s limitations in communicating along his supply chain meant very little variation in what was done or how things were done. Today, models for left side driving, back seats big enough for customers who want a chauffeur, a third row of seats, four doors, two doors: all add volume but unfortunately bring complexity as well. Today’s computer-controlled process technology makes design variety much more scalable than in 1920. Research and practice show that

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now, the ability to collaborate with others (within or outside of Tesla) makes physical proximity moot as well.

An artist’s rendition of Tesla’s gigafactory under construction in Nevada which will make batteries for cars and grid energy storage.

Unlike Ford, Tesla can use a global supply chain to make a wide variety of products while still pursuing the cost benefits of large-scale manufacturing. At the same time, Tesla can focus on making in-house “core” components, like batteries, with high learning and innovation potential. Henry Ford had to control it all because even a missing hubcap could stop the line. Musk can now choose to outsource the more commodity-like components where the potential for process or product design improvement is small.

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Not there yet Musk has increased production from 10,000 vehicles in 2012 to a projected 50,000 by the end of 2015. However, forecasts and supply issues for a variety of parts (especially batteries) are causing scheduling hiccups, which has made Wall Street anxious. While the new “giga” factory coming online in the next couple of years (and others like it) may help achieve many of the needed performance and cost objectives, Tesla is not there yet. Here are three things the company needs to remember to achieve its goal of mass-market electric cars: • First, keep your eye on the core aspects of your business that define your competitive strategy. Tesla making their own batteries fits their strategy of a high-performance, low-cost electric car for the masses. Accumulating experience here moves them toward both volume and cost goals. These are both defined criteria necessary and sufficient for strategic success.

• Second, avoid allocating resources to noncore aspects because the payback is not there. Shortages or failures in hubcaps or trunk carpeting are as much problems now for Tesla as for Ford. But you can outsource to supply chain partners far more easily now than then. • Finally, new products or variations of existing ones should be consistent with maintaining your core competency. That is the key to transferring innovation. If adding scale through colour choices or design combinations can add to accumulated experience in the core areas without unnecessarily adding to the burden of complexity, great! Ford’s view on colour choice is no longer relevant. But Tesla’s Musk can still learn from Henry Ford’s strategy of making strategic components. Making batteries for home and business can help Tesla fuel more innovations in car batteries and vice versa.

REAR VIEW

Every accomplishment starts with a decision to try. – Unknown

Auckland Transport... You got this one right! Industry comment from Managing Director Grayson Engineering and HERA Executive Member, David Moore. In larger tenders, Government and most Public Sector Procurement Rules require best value for money rather than lowest cost as the decisive criteria – however despite this requirement best value for money (‘non-price’) criteria such as consideration of economic, social and environmental impact are seldom sought in the assessment of awarding such work. So, when a recent Request for Tender (RFT) fell on my desk from Auckland Transport (AT) spelling out clearly the requirement of ‘non-price’ responses to be successful in securing their contract – it felt like someone was finally stepping up to the plate and taking a lead for change. Their focus on the creation of positive and enduring socio economic outcomes when it comes to quality employment and development opportunities needs to be commended - and dare I say, held up as an example for all, if we’re to help our local businesses remain competitive in what has become a highly aggressive tendering process now open to global contractors.

as the largest local steel fabricator in close proximity to the project, Grayson Engineering were interested to tender - throwing our hat in the ring as a potential subcontractor.

“It was AT’s tendering approach that made us more confident and excited to be a part of the project.” Their acknowledgement of South Auckland as a unique area through a combination of its people, strong Maori heritage, and position as the worlds Pasifika hub, along with their understanding that employment for a growing youth population would be crucial to the regions creative and economic potential was a refreshing tendering approach calling for targeted recruitment and development plans that demonstrated how tenderers would provide quality, new entrant, paid employment

opportunities to local residents and a meaningful pathway for professional and career development.

equal and retains the need for evidence that economic, social and environment impacts are considered in the tender process for large contracts… including of course for subcontractors.

Being actively involved in industry matters and the HERA Executive, I’m well aware of such obligations under the Government ‘Rules’ of Sourcing, yet – very rarely have I seen strategic social and economic outcomes and innovations called for and expected.

Going forward we need to ask for this rule to apply in every public sector RFT where non-price response requirements are missing – particularly given the public sector is the largest single client of our steel construction industry, and the potential economic development support from best value local procurement is enormous.

Maybe this is because Rule 22 “Subcontracting” in the Governments Procurement Rules states that once a supplier has been awarded the contract, any subsequent contracting that the supplier does is not subject to the “Rules,” however, it shouldn’t be forgotten that there’s explicit encouragement that prime contractors should ask subcontractors to meet good procurement practice.

Now more than ever, advocating strongly with the wider business community and government to make Subcontracting Rule 22 mandatory for large subcontracts is not only the right thing - but critical.

Want to find out more?

What to do about Rule 22?

I’m aware that together, HERA, Metals NZ and SCNZ continue to advocate for this change, and it’s important that if you’re a concerned industry member, you do the same. If you’d like to initiate contact with this group, contact Director, Wolfgang Scholz on wolfgang.scholz@hera.org.nz or +64 9 262 4848.

There are many reasons why this rule has slipped between the cracks, and most likely it’s because to date it has only been compulsory for the head tenderer - and whilst recommended, never enforced for subcontractors. Whatever the reason, if applied properly I think this ruling could genuinely tilt the scale from the lowest cost and likely imported tender option, in favour of the more balanced local bid (particularly if overall it’s competitive).

Equally, if you’ve experienced similar positive experiences in respect to social and economic non-price criteria, HERA would love to hear about it, as they work to research actual public sector procurement behaviour to factually arm Metals NZ and SCNZ with the right information to better advocate for your needs. Please contact Marketing and Communications Kim Nugent on kim.nugent@hera.org.nz or on +64 9 262 4759.

And despite knowing New Zealand’s free trade policy may challenge Grayson Engineering to become more sustainably cost competitive, I generally support the government’s stance on free trade - provided it’s fair,

The Manukau Bus Interchange This $26 million project will be at the heart of the new connected public transport network for south Auckland and a critical step in the Auckland Plan which identifies Manukau as a future metropolitan area not only as a gateway to the area, but also as a vital link to connect its local residents to the rest of the Auckland region. With works now underway, AT have signalled construction will begin in August with completion late 2017, and its hoped once delivered will reduce reliance on private transport and ease congestion on local and arterial roads. An intriguing job with a lot of prospects, it was only natural that

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