October 2014
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CASE STUDY Youths upskill with Metal Skills.
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DEVELOPMENTS Creating world class Kiwi businesses.
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ENERGY Used cigarette butts offer energy solution.
Local steel industry tackles imports head on systems of the fabricator, and on the knowledge and expertise of engineers and welding inspectors, to assess if the steel supplied is compliant,” says Steel Construction New Zealand (SCNZ) Manager Alistair Fussell.
According to the National Construction Pipeline report we are on the brink of the biggest building boom in 40 years, peaking in 2016 when nearly $32 billion of construction activity is predicted. The steel industry is already experiencing increased demand – this year structural steel tonnages grew 20% to approximately 90% of 2008 peak levels.
Significantly, the SFC scheme raises the bar by providing independent, expert certification of New Zealand fabrication companies. Independent auditing body HERA Certification has been established to audit and certify steel fabricators to ensure they have both the welding and the fabrication quality management systems in place to consistently produce fully compliant steelwork.
So the launch in September of the Steel Fabricator Certification (SFC) scheme is particularly timely and marks a major milestone for an industry quality initiative that has been two years in the making. The SFC scheme reduces risk for specifiers; it ensures participating fabricators not only manufacture product to the specified quality standard, but that they have appropriate personnel and quality management systems in place representing international best-practice.
Mr Fussell says the scheme creates an important point of difference for locally fabricated steel compared with imported prefabricated steelwork. “The recent boom in construction activity, centred on Christchurch and Auckland, has seen an increase in the amount of imported prefabricated steelwork entering New Zealand. However, there have been cases where paperwork has been missing or the steelwork does not meet the required specification, leading to expensive and time-consuming testing to
“As with many construction materials, the current compliance regime for structural steelwork relies, for the most part, on self-inspection and self-certification. This approach is dependent on the expertise, ethics and quality
First eight New Zealand fabricators to qualify for Steel Fabricator Certification (L to R): Whakatiki Engineering; D&H Steel; MJH Engineering; Jensen Steel Fabricators; John Jones Steel; Red Steel; Chapman Engineering; Eastbridge.
demonstrate compliacnce and, in some instances, remedial work. The upshot is costly project delays. “The SFC scheme, on the other hand, provides procurers and specifiers, such as engineers, architects and contractors, with certainty of product quality and significantly reduced compliance risk.” Based on a risk approach, the SFC comprises four Construction Categories – CC1-CC4. It enables specifiers to select a level of quality management appropriate to how safety critical the component will be in the construction. The level of quality management required for a farm shed, for example, will be much less than that required for a public building such as a large stadium. As well as the whole building, the CC-rating may
apply to individual elements within the structure. For instance, the seismic load-resisting system for a building may be higher than the gravity portion of the structure. Developed by the Heavy Engineering Research Association (HERA) and Steel Construction New Zealand (SCNZ), SFC is based on the highly regarded European system, which has been modified for local design and construction practice. Initially the SFC scheme will be voluntary, relying on market forces to drive its uptake. SCNZ and HERA have worked with the Australian Steel Institute to develop a Code of Practice in the hope that it is adopted as an AS/ NZS standard, integrating the SFC’s technical and quality requirements into a regulatory framework.
continued on Page 31
Investment Opportunity
Hasmate Ltd, a privately owned company, cloud-based, is going to another level of excellence. Established and proven business provider to SME’s since 1993. Risk Management – health and safety compliance. Internationally compatible. Our ideal investor will have a focus on health and safety and improvement in the workplace.
Gordon Anderson, Hasmate Ltd. • E: Gordon@hasmate.co.nz • www.hasmate.co.nz • P: 06 842 2499
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NZ Manufacturer October 2014
Work spares us from three evils: boredom, vice, and need. – Voltaire
You call us for help
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CONTENTS DEPARTMENTS 5 CASE STUDY
ADVISORS Larry Wiechern
Is the Manager of the Maintenance and Reliability Centre, Manukau Institute of Technology.
Youths upskill with Metal Skills.
TECHNOLOGY 6 MANUFACTURING Printing the Metals of the Future. Hankook Delcam holds world’s biggest meeting for CAM users.
6
10 FOOD MANUFACTURING
Craig Carlyle
Is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Societyand the Event Director of the NationalMaintenance Engineering Conference.
Synlait Milk to China.
12 DEVELOPMENTS Orica invests $35m at Mt Maunganui. Creating world class Kiwi business.
14 DEVELOPMENTS Stage One of business park nears completion. Supply chain success through environmental management.
REPORT 18 ENERGY Used cigarette butts offer energy solution. Diesel fuel – saviour or Achilles heal?
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.
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Brian Willoughby
Is president of the NZ Manufacturers and Exporters Association and managing director of Contex Engineers and Plinius Audio.
WORKSHOP TOOLS
20-21 The Multiple challenges of machining ISO P workpiece materials.
Lewis Woodward
Is managing director of Connection Technologies Ltd, Wellington and is passionate about industry supporting NZ based companies, which in turn builds local expertise and knowledge, and provides education and employment for future generations.
22-25 Refining empty container transport. WORKSHOP TOOLS
Projecta clamps down on voltage. Thin – walled tubes in lightweight construction.
FUTURE OF MANUFACTURING 26 THE Asian Technical Summit successful for global CAM leader.
29 ANALYSIS Economic Diversity.
Professor John Raine
18 24
Is Head of the School of Engineering and Pro Vice Chancellor – Innovation andEnterprise at the Auckland University of Technology.
Bruce Goldsworthy
30 Rural contractors question machinery and BUSINESS NEWS
An advocate for NZ manufacturing for 40 years, he was Chief Executive of the Auckland Manufacturers Association for seven years He has been Manager of EMA’s Advocacy and Manufacturing Services, and lately manager for Export New Zealand in the north.
parts costs.
VIEW 31 REAR Actions speak louder than words.
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NZ Manufacturer October 2014
EDITORIAL PUBLISHER
Media Hawke’s Bay Ltd,1/121 Russell Street North, Hastings, New Zealand 4122.
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Biggest building boom coming up Manufacturers, get your saws out and sharpen your quoting pencils because we are reportedly on the brink of the biggest building boom in 40 years. This is due to peak in 2016 when nearly $32 billion of construction activity is predicted. Just think what this boom can mean to sectors of manufacturing. Whiteware (every office and home needs a fridge), electronics, fitters and turners, painters and decorators right down to the laptop needed for the company social club! You would struggle to think of a category of product which will not be required. Over the years, NZ is compared to Australia a lot when it comes to the price of raw materials - building products and supplies – and over the ditch they wonder why we sit back and just take it on the chin instead of doing something about it. In a competitive marketplace – which we have – let’s look at who the real winners will be in this building boom. Think larger construction companies and ask yourself why the spoils can’t be more equally shared?
scheme which provides procurers and specifiers, such as engineers, architects and contractors with certainty of product quality and significantly reduced compliance risk.SFC has been developed by the Heavy Engineering Research Association (HERA).
It is hoped that the current, encouraging indicators of consistently good manufacturing activity is aided by the building boom… and that everyone is a winner! All of this is part of the picture for economic growth. It is hoped that the current, encouraging indicators of consistently good manufacturing activity is aided by the building boom…and that everyone is a winner!
The steel industry is experiencing increased demand with this year structural steel tonnage is reported to have grown 20% to approximately 90% of 2008 peak levels. And there is now the Steel Fabricator Certification (SFC)
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MANUFACTURING NEWS
Doug Green
NZ Manufacturer October 2014
I have not failed. I’ve just found 10,000 ways that won’t work.
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CASE STUDY
— Thomas A. Edison
Youths Upskill with Metal Skills Trades at School: a pipeline to employment “To expect something different, we have to do something different” (C-Me Mentoring Foundation, 2008). Four years ago, Metal Skills in East Tamaki started doing just that. Metal Skills is a production sheet metal company, who pride themselves on being a “one-stop-shop” from initial design through to the powder-coated finished product. Faced with the challenges of an increasing industry skills gap and the rising cost of staff, Metal Skills were offered a solution in the form of a door-knocking John Kotoisuva, Founder and Chief Executive of the C-Me Mentoring Foundation.
successful tradesmen. In addition to gaining workplace experience, the students also receive additional tutoring for difficult subjects, and attend Manukau Institute of Technology (MIT) every Thursday where they learn practical industry skills and undertake site visits.
John’s proposal was simple; sign up to the C-Me Foundation’s Trades at School programme.
The C-Me Mentoring Foundation created the Trades at School programme with the purpose of empowering youth; taking school leavers with little ambition or direction, and designing new futures for them by working “outside the square”. The aim is to create a higher calibre of school leaver by introducing practical industry training and skills during the education period, allowing for a seamless transition into the real-world workforce.
Trades at School offers companies a chance to temporarily hire senior secondary school students and put them to work, free of charge. In turn for providing labour over their school holidays, the students gain valuable insights into the real working world while learning a strong work ethic, placing them firmly on the path to becoming
Metal Skills jumped at the opportunity to take youth on in exchange for “free labour”, but they soon learned there was much more to the programme. “Essentially that’s what it was at the start. But then when you get down to it, it’s actually a good scheme” says Phil Ward, General Manager.
Commercial & industrial growth
“We support them because it’s a fantastic idea. From 16 they want to be tradesmen or go down that path. For us that’s good, they arrive here and they’ve got those basic skills that we don’t have to worry about.” With tangible successes already beginning to show, Trades at School has opened a new recruitment path for Metal Skills. “Whenever we need someone I just ring up Trades at School and say ‘I’ve got an opening for a young fella, who have you got?’. I’ve got three now. One’s on his way to becoming a tradesman, he’s got his apprenticeship, the other two will be there in the next couple of years. For us it’s been a great feeder for employment”. One success story is that of Joe, a Trades at School student who is the first to undertake an apprenticeship with Metal Skills, “He did his time in our drilling area, which is a horrible job, without moaning. He’s learned to run all three of our lasers, did all of that no problem and now he’s our first apprentice in the 15 years I’ve been here” says Phil.
Employment growth
Minster of Education Hon Hekia Parata, on a recent visit to Metal Skills.
Metal Skills will continue to work with Trades at School, most likely increasing their intake of students and apprentices as time goes on. They have found the programme not only beneficial for the students involved, but also for the company. “They’ve got a good work ethic normally and they’ve got a decent skill base now. For me it’s a win-win.” Phil encourages other companies to support Trades at School. It’s a minimal investment for the positive effect you can have on the future of young people in the workforce, as well as your company.
Economic output
Crime rate East Tamaki is the largest industrial precinct in Auckland with 2000 businesses and a growth rate higher than the regional average. getba.org.nz
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Greater East Tamaki Business Association Inc.
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NZ Manufacturer October 2014
MANUFACTURING TECHNOLOGY
Those who say it can not be done, should not interrupt those doing it. -Chinese Proverb
Printing the Metals of the Future The quality control of component surfaces is a complex undertaking. Researchers have engineered a high-precision modular inspection system that can be adapted on a customer-specific basis and integrated into the production process.
Scientists make a rocket nozzle using a new 3-D printing technique that allows for multiple metallic properties in the same object. Credit: NASA-JPL/Caltech 3-D printers can create all kinds of things, from eyeglasses to implantable medical devices, straight from a computer model and without the need for molds. But for making spacecraft, engineers sometimes need custom parts that traditional manufacturing techniques and standard 3-D printers can’t create, because they need to have the properties of multiple metals.
Now, researchers at NASA’s Jet Propulsion Laboratory (JPL) in California, USA, are implementing a printing process that transitions from one metal or alloy to another in a single object.
brittle, so that your new object might fall apart under stress. That’s not a good idea if you are constructing an interplanetary spacecraft, for example, which cannot be fixed once it is deployed.
“You can have a continuous transition from alloy to alloy to alloy, and you can study a wide range of potential alloys,” said R. Peter Dillon, a technologist at JPL. “We think it’s going to change materials research in the future.”
JPL scientists have been developing a technique to address this problem since 2010. An effort to improve the methods of combining parts made of different materials in NASA’s Mars Science Laboratory mission, which safely landed the Curiosity rover on the Red Planet in 2012, inspired a project to 3-D print components with multiple alloy compositions.
Although gradient alloys have been created in the past in research and development settings, this is the first time these composite materials have been used in making objects, such as a mount for a mirror, said John Paul Borgonia, a JPL mechanical engineer. Why would you need to make a machine part like this? Say you want a metal object where you would like the ends to have different properties. One side could have a high melting temperature and the other a low density, or one side could be magnetic and the other not.
Researchers from JPL, the California Institute of Technology, Pasadena, and Pennsylvania State University, University Park, joined forces to tackle the issue. The result has implications for space travel and machinery on our own planet.
Of course, you could separately make both halves of the object from their respective metals and then weld them together. But the weld itself may be
This is a prototype of a mirror mount that scientists made using a new 3-D printing technique. Credit: NASA-JPL/ Caltech “We’re taking a standard 3-D printing process and combining the ability to change the metal powder that the part is being built with on the fly,” said Douglas Hofmann, a researcher in material science and metallurgy at JPL, and visiting associate at Caltech. “You can constantly be changing the composition of the material.” In their new technique, Hofmann and his colleagues deposit layers of metal on a rotating rod, thus transitioning metals from the inside out, rather than adding layers from bottom to top, as in the more traditional 3-D printing technique. A laser melts metal powder to create the layers. Future space missions may incorporate parts made with this technique. The auto industry and the commercial aerospace industry may also find it useful, Hofmann said. A report on this work was published in Scientific Reports on June 19. Source: Phys.org News
DISRUPTIVE MANUFACTURING AND ENGINEERING INNOVATION
WORKSHOP WITH FRANK WAGNER If you are doing business in the manufacturing and engineering sector then this is a workshop you should not miss. Frank Wagner will lead a workshop that challenges traditional concepts of manufacturing and engineering as the industry is moving into a world of converging technology disruptions. He will discuss topics such as • robotic assembly/manufacture • 3D additive manufacture • new smart materials • networked factories and new business models. He will also lead interactive, practical sessions with hands-on advice and outcomes.
WHO IS FRANK WAGNER? Frank started his career in 1990 at the Fraunhofer Institute for Industrial Engineering (IAO) in Stuttgart and since 2002 has been a member of the IAO Management Board. In 2014 he was appointed as an Adjunct Professor at QUT, Queensland University of Technology in Brisbane at the Science and Engineering Faculty. His research and consulting activities are industry focused and due to his profound long time experience in his field, he has acted as an expert and reviewer of R&D projects and programs for the European Commission (EC) as well as for Swiss, Norwegian and UK research funding agencies many times. Moreover, he was a member of the initial ‘Manufacturing Technology Action Plan’ expert group of the European Commission and he is active in the European Technology Platforms Manufuture and ECTP. Frank has also (co-)authored more than 30 publications in the area of Technology & Innovation Management, Manufacturing Management, Product Development and IT-Systems.
Date and Time Tuesday 4th November 8:30am - 5:00pm Cost per person attending $460 (GST inc) Location Captains Lounge, Orams Marine Village, 142 Beaumont Street, Westhaven, Auckland 1010. Agenda includes Situation and Trends in Engineering and Manufacturing Introduction to Fraunhofer IAO; Situation and Challenges in Manufacturing in Europe; Motivation and Concept for Engineering and Manufacturing Innovation; Disruptive Trends in Engineering and Manufacturing; Methods and cases for radical Innovation; How To innovate in Engineering and Manufacturing; Interactive Hands-on Exercise: ’Engineering and Manufacturing Innovation for an e-Bike’
NZ Manufacturer October 2014
You are not your resume, you are your work. -Seth Godin
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MANUFACTURING TECHNOLOGY
Hankook Delcam holds world’s biggest meeting for CAM users Delcam’s South Korean joint venture, Hankook Delcam, held its 25th User Group Conference at the Hyundai Hotel in Kyeong-Ju on 26th and 27th September. The theme for this year’s meeting was ‘Big Jump Up’, a reference to the large increases in productivity being seen by companies adopting software and services from Hankook Delcam. Over 1,300 attendees set a new record number for the event, reinforcing its position as the world’s largest meeting for CAM users. The meeting was the first major event to be held for Korean users since the acquisition of Delcam by Autodesk in February. The audience was, therefore, especially interested in the presentations from Delcam President, Clive Martell, and Buzz Kross, senior vice president for Design, Lifecycle and Simulation products at Autodesk. Mr. Martell said that the acquisition represented Delcam’s own ‘Big Jump Up’. “Autodesk brings to Delcam increased financial strength, unparalleled expertise in design, and
a long history of making technology accessible to broad audiences. Through sharing our technology and expertise, this transaction will transform industries and improve how the world is designed and made,” he commented. The significance of the deal was also emphasised by Mr. Kross. “The acquisition of Delcam is an important step in Autodesk’s continued expansion into manufacturing and fabrication and beyond our roots in design,” he stated. “Together with Delcam, we look forward to accelerating the development of a more comprehensive
Digital Prototyping solution and delivering a better manufacturing experience to our customers.”
from Korean companies wishing to improve their productivity by automating their processes.
The other presentations during the meeting covered the latest developments across the range of Delcam software for design, modelling for manufacture, machining and inspection.
The meeting also featured the awards ceremony for the winners of the Korean section of 3nd Global CAM Skill Competition, who have qualified for the World Championships to be held at Delcam’s headquarters in Birmingham early next year. This competition, which was open to local high school and college students, is held each year as part of Hankook Delcam’s support for the development of CAM software skills to meet the needs of the country’s manufacturing industry.
New technology was also described from Hankook Delcam, in particular developments in the Hankook Delcam Automation Solution (HDAS) that enables innovation across the entire manufacturing process. This novel technology is attracting great interest
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ADVERTORIAL
When one door of happiness closes, another opens, but often we look so long at the closed door that we do not see the one that has been opened for us. -Helen Keller
Packaging House delivering more – Our promise to you Our business is to help you focus on yours. At Packaging House, we can take care of supplying the business essentials you simply need to be there: chemicals, colour coded brushware, refuse bags and bin liners for your cleaning cupboard ; industrial marking, first aid kits, hand, foot, eye, ear and head protection for your workplace safety; tapes, cases and strap for your warehouse and distribution ; toilet paper, towels, soaps and dispensers for your bathrooms; and coffee, tea, napkins and takeaway cups for your kitchen and cafeteria. Delivering more global efficiency Packaging House operates in the global market place, maximising global efficiencies in product sourcing and delivery. We understand the importance of keeping well informed on global trends and developments, and we’re constantly looking for new ranges and suppliers to make life easier for our customers. Our global sourcing office in Shanghai, with the support of our local category experts, has developed a strong network of global suppliers across all our product categories. Through these international connections, Packaging House has the ability to meet all your
packaging sourcing needs.
operational expenditure
In addition to sourcing full product ranges and customer specific needs, the Shanghai based team also ensures the quality and performance of all globally sourced products, so our customers can have confidence in all aspects of the supply chain, including:
• Low initial cost
• Quality assurance and quality control
• Results in ownership of machine
• Audits of all international manufacturers providing assurance on health, safety and environment, as well as ethical sourcing • Technical support
and
manufacturing
• Allows upgrading/updating and more flexibility to change packaging plans and processes
Lease to own • Medium to long term
Cost in use/contract • Easy monthly payment based on usage either of consumable or the number of cycles
You can’t afford to miss out on business or leave customers waiting. With branches nationwide, a Packaging House warehouse is never far away. The added convenience of choosing immediate pick-up or fast delivery means you’ll have less downtime.
Delivering more finance options
Packaging house can design a preventative maintenance plan for new or existing machinery that can also be included in a finance agreement or contract.
• Ideal for production breakdowns or seasonality
Service
• Prolong useful service life • Ensure smooth and safe operation • Reduce wastage consumable
• Short term spikes,
• Operational expense
Lease • Medium to long term • The lease payments appear as an
Thanks to our collective buying power we deliver better prices across the widest range. Combine this with the lower administration costs of dealing with one supplier, and your procurement costs will come down quickly.
Delivering more service
• Low initial costs
Rental
Delivering more value
• Costs can scale with production
• Consolidation warehousing within Asia
Capital equipment is important, and Packaging House can offer flexible solutions to help your business maintain or grow capacity, suit your financial or accounting needs, and keep your operations effective and economic.
Leaving you with more time to concentrate on your core business.
of
time
and
Delivering more time We make procurement simpler.With Packaging House as your sole supplier of everyday business essentials, we could provide just one invoice - saving you from having to spend time dealing with multiple orders from a range of suppliers.
Delivering more expertise When it comes to your business, you’re the expert. That’s why our Account Managers spend time getting to know you, so we can tailor a solution to meet your specific needs. Our promise to you is simple. We’ll work with you every step of the way to deliver you a complete range of everyday business essentials, at the right price, from one plae no matter where you are in New Zealand. Put our promise to the test today. Call us on 0800 722 566 to arrange for one of our Specialists to identify how Packaging House can Deliver more with your everyday business essentials.
Health and Safety Management Now Made Easy View the Hasmate trial on line or contact us at 06 84 22 499 for a no obligation personal “On line” tour of ©Hasmate using ©JoinMe. Ask us questions and see for yourself how easy ©Hasmate can assist your business to meet the pending changes to NZ health and safety legislation. …….read more
of its Cloud based ©Hasmate program using ©JoinMe
A Solution, Hasmate
When you contact us by email admin@ hasmate.co.nz or by phone 06 84 22499. We will establish a suitable time to contact you and provide you with a guided tour on line. We can identify and discuss your health and safety requirements and guide you through the program and to answer any health and safety questions you may have.
What is Hasmate?
Who is Hasmate Ltd?
©Hasmate is a practical, proven and cost effective solution to meet these changes.
Hasmate have been providing proven health and safety, auditing and other management solutions since 1993.
Regardless of where you are located or what type or size of business you own, ©Hasmate can now provide you with a no obligation online personal tour
During our 23 years’ experience working in health and safety management providing development and auditing services, we has worked
On the 1st of April 2015 NZ health and safety legislation will undergo an unprecedented change. Is your business prepared?
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with a wide range on business sectors and industries. It is this experience that we now can bring to your business as an online advisory service. We have a large range of tried and proven health and safety plans and supporting documentation to complement this new service. These plans can be tailored to provide your business with practical health and safety solutions to meet your needs. All Hasmate health and safety plans are developed to meet: • The new NZ Australian based model for health and safety • AS/NZS 4801 health and safety standards • ACC Workplace Safety Management Programme audit standards
The Hasmate “How to” manual To assist you work through the development of your health and safety plan, we have developed a unique “How to” manual based on our 23 years’ experience to assist you to develop your company’s health and safety plans in a step by step manner. Safe operating procedures (SOPs) We have developed a large range of SOPs that can be tailored to your business operations. We also provide the service to develop your unique SOPs for your business saving time and cost. See Hasmate products…….. Gordon Anderson Gordon@hasmate.co.nz Ph 06 84 22 499 0800 Hasmate
NZ Manufacturer October 2014
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WE CAN HELP YOU ENSURE YOUR FOOD PRODUCTION IS SAFE & RISK-FREE.
Work spares us from three evils: boredom, vice, and need. – Voltaire
GET A
FREE
ONSITE L APPRAISA
That’s because our team can supply you with the expertise needed to make HACCP part of your business. We’re also experts in sourcing and delivering everyday business essentials – something we’ve been doing for over 40 years. We can supply you with stretch film and strap, workplace cleaning products, safety, kitchen and cafeteria products, and more. And with nationwide warehousing and distribution, you won’t be slowed down by lack of supplies.
Your Company Colour Coded Zones for HACCP
Your Company Colour Coded Zones for HACCP
All this gives you more time to focus on core business. Better still, our One Source model makes procurement simpler and can significantly reduce your costs through reduced vendors, consolidated invoicing and collective buying power.
Request your FREE onsite appraisal from a Packaging House specialist by visiting www.packaginghouse.co.nz/food_processor www.packaginghouse.co.nz
DELIVERING MORE expertise
0800 722 567
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NZ Manufacturer October 2014
FOOD MANUFACTURING
The problem with the rat race is that even if you win, you’re still a rat. -Lily Tomlin
Accreditation milestone for Synlait Milk Synlait Milk has become a registered manufacturer of retail-ready infant milk formula for export to China. The Canterbury company announced on September 30 it had received approval from the Certification and Accreditation Administration of the People’s Republic of China. Managing director John Penno said the latest registration was a major milestone for the business. It added to its registration as a manufacturer of general dairy products and infant formula base powders for export to China, granted in May. ‘’Being able to manufacture and export high-quality finished infant formula products to China will help Synlait Milk deliver on its value-added strategy, and provides an important confidence boost for our China business where we see significant opportunity for future earnings,’’ Dr Penno said. Synlait had applied for registration after the Ministry for Primary Industries approved the risk management programme for its dry blending and consumer packaging plant.
The plant could process 30,000 metric tonnes a year at the rate of 110 cans a minute. That made it ‘’a cost-competitive solution for large-volume customers’’, the company said. ‘’It was our intention to build the best plant of its type in the southern hemisphere, particularly in terms
of operating efficiency and product quality standards, and feedback from our multinational customers who refer to the plant as `next generation’ affirms our goal,’’ Dr Penno said.
needs of our infant formula customers for a complete, integrated supply chain solution, from raw milk sourcing and collection through to manufacturing and retail packaging.’’
‘’We now have an integrated facility on one site in Canterbury, New Zealand that gives us full manufacturing and packaging control, and delivers on the
Automation reduced physical handling of product, and a purpose-built, in-process laboratory inspected every can processed.
The plant could process 30,000 metric tonnes a year at the rate of 110 cans a minute.
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NZ Food Manufacturer
NZ Manufacturer October 2014
11
News – Developments – Opportunities
F ro m
the
to the
NZ Food Manufacturer brings you all the latest news and developments in food manufacturing
For further information and to advertise visit
www.nzfoodmanufacturer.co.nz www.nzmanufacturer.co.nz Doug Green T: 0064 6 870 9029 E: publisher@xtra.co.nz
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NZ Manufacturer October 2014
DEVELOPMENTS
It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. -Charles Darwin
Orica invests $35m at Mt Maunganui A $35 million state-of-the-art upgrade has taken place at of Orica’s manufacturing facility at Mt Maunganui. The investment is a response to growing demand for Orica’s products. The upgrade resulted in major changes to the site’s manufacturing, storage and handling, and waste management facilities, to increase efficiency and ensure the operation’s long-term future. Today’s facility is an exemplar of environmental and manufacturing best practice, which is crucial in an industry where safety is paramount. “We’re always seeking to raise the bar,” said Orica New Zealand General Manager Matt Cawte. “We supply essential products to many of the country’s leading industries. This significant upgrade ensures we have the flexibility and capability to meet the rapidly changing needs of our customers; it signals our commitment
to the Bay of Plenty as the centre of our operations and the source of our future growth.” Mr Cawte says the benefits of Orica’s investment will reach well beyond the site gates and extend into the wider Bay of Plenty community. The upgrade has led to a reduction in waste through better capture and recycling operations; it has also enhanced the separation and management of storm and waste water streams. The site’s chemical storage and handling facilities, too, have been improved. This includes a comprehensive upgrade of its main storage tanks, new containment compounds and advanced control systems. ICI (now Orica) first established a presence in the Bay of Plenty in 1963. Orica now employs over 75 staff at the Mt Maunganui site. Today, Orica is a leading provider of chemicals to New Zealand’s dairy,
Guests touring the newly upgraded Mt Maunganui plant. www.nzmanufacturer.co.nz
(From left to right) Andrew Larke (Global Head of Chemicals for Orica), Matt Cawte (General Manager of Orica NZ), Stuart Crosby (Mayor of Tauranga).
food and beverage, water, and pulp and paper industries, supplying over 300,000 tonnes per year. Key Mt Maunganui site facts • $35 million invested in the plant upgrade • Manufactures more than 100,000 tonnes of bulk and blended products per annum • Employs 75 staff • 10,000 truck movements in and out
of the site per year • Site area is 20,000m2 About Orica Orica manufactures and supplies chemicals to New Zealand’s water treatment, dairy, food and beverage, pulp and paper, general corrosives, mining and lubricants industries, among others. Orica’s parent, Orica Limited based in Melbourne, is a global firm listed on the ASX.
NZ Manufacturer October 2014
Opportunity is missed by most people because it is dressed in overalls and looks like work. -Thomas Edison
13
DEVELOPMENTS
Creating world class Kiwi businesses Determined to transform New Zealand’s performance culture, the team at INTENT Group Limited (INTENT) is helping organisations around the country to raise their productivity and performance. By developing and training people and providing them with the skills and confidence to continuously improve and grow their organisation, INTENT has been helping businesses deliver tangible results, for more than eleven years now.
assessment tools, and a collection of methodologies including Lean, TQM and the Theory of Constraints. The company also delivers training for companies wishing to have their staff qualify in NZQA Level 2–5 of Competitive Manufacturing.
With its team made up of specialists proficient in developing and providing World Class improvements, INTENT uses its vast experience and broad knowledge of best practice to develop the solution best suited to the needs of each business they work with.
Creating a competitive business can have its challenges. But, with over 350 years of experience between them, the INTENT team has seen the pitfalls and overcome the issues many times before in organisations both large and small, in public and private sectors, spanning many different industries and environments.
They offer solutions based on the core improvement practices of World Class Manufacturing, Supply Chain and Office. The programmes contain modules which drive business development by building best practice awareness and help establish direction, assess capabilities, improve performance, and grow and sustain capability in people, processes and systems. INTENT has an extensive range of training materials, simulations and
They have assisted many manufacturing companies on their journey to become World Class by helping them deliver the products and service their customers want, allowing work to be completed more efficiently, and effectively improving staff morale and their bottom line. The following case study demonstrates the significant results that can be achieved when focusing on business
improvement. In 2010 Betacraft and INTENT worked together to address a production shortfall, and in doing so almost doubled the company’s manufacturing output.
are better organised, health and safety is prioritised, data is captured and flowing, and any issues are promptly resolved.
Betacraft’s awareness of Lean practices was already high, so a combination of training and mentoring allowed INTENT to provide managers with the structure, tools and principles to successfully lead and execute change.
Always considering new ways to help kiwi businesses flourish, INTENT is soon to host six events on the topic of the Theory of Constraints (TOC). The ‘It’s Not Luck!’ breakfast briefings and workshops are taking place around the North Island, this 3 – 5 November. A British TOC expert, who worked with TOC creator and author of “The Goal’, Dr Eliyahu Goldratt, for many years, will share his knowledge of TOC, discuss the constraints preventing businesses from success, and guide attendees to achieve immediate results. For more information on TOC or to register, visit the INTENT website: www.intentgroup.co.nz.
They made rapid progress. Once quality and planning became the key business drivers, manufacturing time reduced and production figures almost doubled. Betacraft managers now successfully lead change, work areas
Want to transform your business? Interested in becoming a World Class Organisation? Phone INTENT on 09 523 0366 or email worldclass@intentgroup.co.nz for more information.
CASE STUDY When facing supply issues after outsourcing some of their production requirements abroad, INTENT worked with clothing manufacturer Betacraft to provide Lean mentoring and help create a company culture focused on sustainable improvement over the long term.
WORLD CLASS MANUFACTURING IMPROVE YOUR BUSINESS PERFORMANCE THROUGH MANUFACTURING EXCELLENCE
OUR WORLD CLASS MANUFACTURING PROGRAMME TAKES ORGANISATIONS THROUGH FIVE STAGES INTENT translates boardroom aspirations into performance reality using such tools as Lean, Six Sigma and the Theory of Constraints. We work with clients to educate, build capability, improve and sustain performance. Where required, we deliver level 2-5 Competitive Manufacturing qualifications to help organisations achieve real results.
www.intentgroup.co.nz 09 523 0366 worldclass@intentgroup.co.nz
www.nzmanufacturer.co.nz
14
NZ Manufacturer October 2014
DEVELOPMENTS
You have brains in your head. You have feet in your shoes. You can steer yourself, any direction you choose. -Dr. Seuss
Stage One of $400m business Supply chain success through park development nears environmental management completion Stage One of a new 114 ha Business Park in Islington is nearing completion with the first tenants moving in. The $400 million dollar development is on the Islington Freezing Works site and is now called Waterloo Business Park. Work on Stage Two of the development (comprising of 30 ha) is well underway with infrastructure and roads under construction. The Park’s first tenant Santa Rosa Foods recently moved into their 2500sqm factory. TransDiesel, Conroy Removals, and two private developments are also in detailed design and will commence building later this year. A further 2.6ha was sold last month to Cardinal Freight with the development now having sold approx. 50ha overall. Waterloo and Pound Roads will both be realigned in conjunction with the
development, connecting through to the Main South Road, improving safety and diverting heavy traffic away from existing residential areas. Halswell Junction Road will be extended through the Park up to Pound Road to create a major connection from the northwest to the CBD and Port. While primarily industrial and commercial, the Business Park is designed with a town square or central hub at its heart. Plans are underway to develop areas with hospitality and retail offerings, alongside health and recreation spaces. Waterloo Business Park is a joint venture between highly experienced property developer John Sax, of Auckland-based Southpark Corporation Ltd and Southland-based businessmen Inky Tulloch and Paul Johnstone.
proactive improvemeNt reduce risk
“We saw that the Enviro-Mark certification would provide us with everything we were looking for.” “The Enviro-Mark Platinum accreditation removes the confusion for the consumer.”
New ZealaNd’s leadiNg eNviroNmeNtal maNagemeNt certificatioN provider
You’ve achieved Enviro-Mark Platinum certification now. Tell us about some of the improvements you have made along the way. We now separate all our rubbish into their various streams: steel, plastic, cardboard which has led to a 60% reduction in waste going to landfill. We schedule all our production so that the primary driver is to minimise our energy use and reduce our water consumption. An example of how we have taken our EMS to the smallest level: we wash & sanitise all our own toilet handtowels, factory cleaning cloths & overalls internally. Re-using all our cleaning cloths over and over is better for the environment. We use environmentally-friendly cleaning detergents – made by us - in the process. Any other benefits apart from cost savings?
A large number of our staff have told me that through what they have seen at work, they have improved their own recycling habits at home. They are also mentioning how they are influencing their friends’ recycling habits. In short our EMS programme is spreading beyond our own four walls into the wider community, which is fantastic to be a part of. What are the environmental challenges of operating a manufacturing facility? To be the leader in their field ecostore has committed to a very progressive research and development programme. ecostore is expanding domestically and internationally, and continually developing new products. For us as their manufacturing facility it is very important we continually review our processes and procedures to ensure our EMS is keeping pace. We need to be very dynamic, as does our EMS. What challenges to implementing an EMS have you encountered along the way? As one example: when we were attempting to track where stormwater goes from our car park. We had to communicate with government departments and local councils. This turned what we thought would be a simple process into a rabbit warren! The ‘system’ sometimes doesn’t make it easy to be good. We got there in the end. What has been the key to your success? The most important thing was that we knew exactly what we were heading into. We had 100% commitment from our Board members and management. We resourced ourselves appropriately,
o8oo eNmark www.nzmanufacturer.co.nz
w w w.eNviro-mark.com
Manufacturers with strong environmental credentials are winning work, reducing risks, and demonstrating endurance within the supply chain.
Procurement policies often refer to sustainability, but simply ticking the box is no longer enough for tendering success. Instead, it is manufacturers with robust and credible environmental management systems (EMS) winning work. These systems allow your business to understand, engage and reduce environmental impacts. Within the supply chain, how environmental impacts are managed speaks volumes about your organisation’s ethos, actions, and durability. Taking a stance on credible environmental management with third-party verification for your EMS indicates an adaptable, dynamic, forward-thinking business and a valuable partner for the long term. An EMS ensures that risks are anticipated and addressed before they become a problem, and these reduced risks save time, money, and provide assurance to partners. This can include risks within the organisation, such as Health & Safety or waste impacts, but also supply risks such as material access or cost or disruption to supply. The benefits of a credible EMS aren’t only for those with technical expertise. Programmes such as Enviro-Mark provide support and guidance for organisations wanting to develop or improve their EMS. The Enviro-Mark programme is a five-step journey to improved environmental performance with a focus on continuous improvement and independent verification. The Gold level of Enviro-Mark indicates a robust EMS and the Diamond level of Enviro-Mark certification meets and exceeds the requirements of ISO 14001. However, because the Enviro-Mark programme provides all the tools, guidance, technical expertise, and checklists needed, credible environmental management is an achievable goal for any organisation. Croxley Stationery, Enviro-Mark Diamond certified, recognised “some years ago that the end users of our products were going to purchase from producers that have robust environmental credentials.
Additionally we could see that there would be significant cost reductions for our business in terms of waste reduction, recycling and energy management programmes” explains Health, Safety and Environment Manager Tony de Felice. Croxley’s EMS has generated over $250,000 in returned revenue by changing how waste was processed. Wool textile manufacturer Inter-weave, another Enviro-Mark Diamond certified organisation, began its journey because “we wanted to develop a practical and efficient environmental management system (EMS) to complement our sustainable main raw material” but the benefits and achievements have been myriad. Inter-weave has won many 5-star green building contracts throughout the world. “Our customers are assured that we consider the environment at every turn in our manufacturing processes” explains Managing Director Tracy March. Environmental credentials are increasingly a license to operate and an organisation prepared with a certified EMS can maintain prime position and win new work. A credible EMS demonstrates commitment and responsibility, as well as good business sense. Reduce risks, improve operations, and maintain a high moral standard: add a certified EMS to your organisation’s credential and ensure supply chain access. To learn more about Enviro-Mark certification and how your organisation can benefit from a credible EMS, go to enviro-mark. co.nz or call 0800 ENMARK today.
NZ Manufacturer October 2014
A man should never neglect his family for business. -Walt Disney
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DEVELOPMENTS
Welcome – Now Leasing It’s always good to be ahead of the curve. The inaugural edition of Bayleys’ Now Leasing brings a new marketing vehicle to the industrial property market place and is designed to put the spotlight firmly on the industrial leasing sector. Industrial property has been identified as the steadiest performer in the real estate market in a recent report by Bayleys Research. As a sector, the industrial market is characterised by generally low volatility in key indicators such as vacancy levels, rentals, yields and returns.
office property recorded a greater deterioration. A growing economy, a rise in manufacturing activity, a change in retailing patterns and the surge in online “e-tailing”, plus an identified shortage of new industrial-zoned land are all putting pressure on industrial leasing supply-demand fundamentals in the Auckland region.
Compared to office and retail, industrial property has proven to be far less volatile since the Global Financial Crisis (GFC).
Meanwhile, new infrastructure initiatives such as the Auckland Manukau Eastern Transport Initiative (AMETI) project (explored in more detail in this magazine) will future-proof some Auckland industrial locations by making them more accessible and more appealing to a broader base of tenants.
Industrial occupancy levels remained relatively resilient in most parts of the country following the 2007 GFC downturn, while retail and
This is heartening news for industrial property owners who can take confidence from the flourishing industrial environment and pat
themselves on the back for being part of such a lively sector. In turn, it also keeps businesses on their toes.
sector has expanded for 23 consecutive months largely on the back of a rise in building and construction activity.
With a constrained market place, prospective tenants need to act mindfully and quickly if they are to secure premises that best fit their requirements. They may have to compete for industrial space and be prepared to be flexible around terms and conditions.
A recent report by PwC entitled Real Estate 2020 – building the future talks about changing fundamentals in the industrial and commercial sector on the back of an expanding virtual world. Some property will become superfluous, while the impact of online retailing and our expectations and demand for condensed delivery times will change warehousing requirements.
The industrial property market is an evolving one with property investors and owners needing to pay heed to changing dynamics. The BNZ-Business New Zealand’s Performance of Manufacturing Index rose 3 points to 56.5 points in August, from July. A reading of above 50 points indicates an expansion mode. According to the report, manufacturing activity has risen to its strongest level in five months and figures for August show that the
Industrial property owners, developers and investors must also stay ahead of the curve – identifying gaps in the industrial property sector, responding to changing demographics and trends, and being open to creative leasing solutions. If you are in the market for well-located industrial property to lease, Bayleys hope you will find something of interest in the pages of Now Leasing.
Deal with US company opens doors for Robinson Research Institute The Robinson Research Institute has signed a strategic partnership agreement with NASDAQ-listed Superconductor Technologies Inc. (STI) which will see the Institute’s innovative technology used for new applications in the energy and health industries. Based at Victoria University of Wellington, the Robinson Research Institute has leading-edge expertise in producing high temperature superconducting (HTS) technologies including HTS Roebel cable, a winding cable that is used in large magnets, rotating machines and transformers. Headquartered in Austin, Texas, STI is developing and producing a new and world leading high performance HTS wire called Conductus®. The target markets for STI wire are high power transmission cables, devices to control fault-currents, utility-scale generators and power transformers. These devices exhibit greater power transmission capacity, higher reliability, lower fire risk and a reduced environmental impact. Robinson Research will use STI’s HTS wire to fabricate Roebel cable and, in partnership with New Zealand and international companies, undertake projects demonstrating the value of HTS technologies in the target magnet,
generator and transformer markets. “The Robinson Research Institute has been a valuable STI ally as we prepare for the commercial launch of Conductus wire,” said Jeff Quiram, STI’s president and Chief Executive Officer. “Robinson’s wire-performance characterisation expertise and applications knowledge are truly impressive.
Research Institute and its New Zealand partners have built superconducting devices for the energy industry, recently completing a transformer for use in the electrical grid. In the healthcare market, Robinson has focused on developing MRI systems. Professor Bob Buckley, Director of the Robinson Research Institute says: “We believe that STI wire’s high uniformity
and exceptional low-temperature and high-field current capacity could pave the way for new products that require best in class wire performance, including Roebel cable applications. “The market for superconducting systems is continuing to expand with heavy emphasis on high-field magnets in smaller packages for products such as MRI and NMR devices.”
“As STI moves to full production, we are implementing a comprehensive plan to supply Conductus wire and support global leaders in the commercialisation of superconducting devices. “Robinson is an expert in the development of innovative superconducting technologies and products. Jointly we have already identified multiple projects including applications such as rotating machines, transformers, scientific magnets and MRI systems. Additionally, Robinson and its partners have a strong focus on Asia and we believe our agreement will help STI to expand our reach into that fast-growing market.” Working alongside many industry leaders, the Robinson www.nzmanufacturer.co.nz
NZ Manufacturer October 2014
Work spares us from three evils: boredom, vice, and need. – Voltaire
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NZ Manufacturer October 2014
Work spares us from three evils: boredom, vice, and need. – Voltaire
DISCOVER OVER 25 OF THE BEST INDUSTRIAL LEASING OPPORTUNITIES IN AUCKLAND
WITH SPACES FROM 100M² TO 10,000M² YOU’LL BE FLOORED BY THE CHOICE IT’S ALL IN THE LATEST NOW LEASING MAGAZINE Get in touch, or pick up a copy of Now Leasing, Bayleys brand new collection of industrial premises for lease. Call 0800 BAYLEYS for your complimentary copy or view online. www.bayleys.co.nz/magazinesAuckland
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NZ Manufacturer October 2014
ENERGY
Far and away the best prize that life offers is the chance to work hard at work worth doing. -Theodore Roosevelt
Used cigarette butts offer energy solution A group of scientists from South Korea have converted used-cigarette butts into a high-performing material that could be integrated into computers, handheld devices, electrical vehicles and wind turbines to store energy. The researchers have demonstrated the material’s superior performance compared to commercially available carbon, graphene and carbon nanotubes. It is hoped the material can be used to coat the electrodes of supercapacitors—electrochemical components that can store extremely large amounts of electrical energy— whilst also offering a solution to the growing environmental problem caused by used-cigarette filters. It is estimated that as many as 5.6 trillion used-cigarettes, or 766?571 metric tons, are deposited into the environment worldwide every year.
incorporating a large number of small pores into the material,” continued Professor Yi. “A combination of different pore sizes ensures that the material has high power densities, which is an essential property in a supercapacitor for the fast charging and discharging.” Once fabricated, the carbon-based material was attached to an electrode and tested in a three-electrode system to see how well the material could adsorb electrolyte ions (charge) and then release electrolyte ions (discharge). The material stored a higher amount of electrical energy than commercially available carbon and also had a higher amount of storage compared to graphene and carbon nanotubes, as reported in previous studies.
“Numerous countries are developing strict regulations to avoid the trillions of toxic and non-biodegradable used-cigarette filters that are disposed of into the environment each year— our method is just one way of achieving this.”
Scientists around the world are currently working towards improving the characteristics of supercapacitors— such as energy density, power density and cycle stability—whilst also trying to reduce production costs. In their study, the researchers demonstrated that the cellulose acetate fibres that cigarette filters are mostly composed of could be transformed into a carbon-based material using a simple, one-step burning technique called pyrolysis. As a result of this burning process, the resulting carbon-based material contained a number of tiny pores, increasing its performance as a supercapacitive material. A high-performing supercapacitor material should have a large surface area, which can be achieved by www.nzmanufacturer.co.nz
Conergy Australia has branched out into the Pacific Islands. The company, a subsidiary of one the world’s largest solar companies, will build a first-of-its-kind heart-shaped solar power plant in New Caledonia, 1200 kilometres east of its national headquarters in Brisbane. The new 2MWp power plant will be located in the northern community of Pouembout, on Grand Terre, New Caledonia’s largest island, where 7,888 German-made Conergy PowerPlus panels will generate enough electricity to supply 750 homes. The project was commissioned by TIEA Energie, a subsidiary of local beverage company Froico SA. Conergy will begin engineering and construction (EPC) work in the coming months, partnering with local contractor AMBI Energy. The unique design was inspired by the “Coeur de Voh”, or “Heart of Voh”, an area of nearby wild mangrove vegetation that has naturally taken the shape of a heart. The “Coeur de Voh” gained worldwide recognition thanks to the aerial photography of environmental campaigner Yann Arthus-Bertrand in the best-selling book, “The Earth from Above.”
Co-author of the study Professor Jongheop Yi, from Seoul National University, said: “Our study has shown that used-cigarette filters can be transformed into a high-performing carbon-based material using a simple one step process, which simultaneously offers a green solution to meeting the energy demands of society.
Carbon is the most popular material that supercapacitors are composed of, due to its low cost, high surface area, high electrical conductivity and long term stability.
Conenergy to build heart-shaped solar power plant Caledonia’, it will save an estimated two million tonnes of carbon dioxide emissions over its projected 25-year lifetime, compared with fuel oil, gas oil and coal, which generate the majority of the islands’ power today. David McCallum, Managing Director, Conergy Australia, said: “In Australia and the Pacific Islands, solar is competitive to build and attractive to finance, since operating costs are low with no fuel dependency. With all of the uncertainty in the Australian industry right now, the “Heart of New Caledonia” is a giant heart-shaped message to the government that it’s time to start loving solar.” Australia’s Renewable Energy Target (RET) is a Federal Government policy designed to ensure that at least 20 per cent of Australia’s electricity comes from renewable sources by 2020.A decision on the future of the RET is expected in the coming weeks.
Like its natural cousin the power plant’s eye-catching heart shape will only be visible from the air, when it is completed in the first quarter of next year. Called the ‘Heart of New
Diesel Fuel - can be the saviour or achilles heel of health care Imagine a power failure in a hospital’s intensive care unit where lives depend on the energy source. The diesel generator kicks in automatically to resupply power, but then suddenly dies. The problem, blocked fuel filters as a result of contaminated fuel. The crises created within the hospital could be life threatening. Counties Manukau District Health Board recognises this and has its diesel fuel stocks regularly tested for quality. While the fuel must be within spec it also needs to be maintained in a “fit for purpose” condition, ready for use at any time. Phil Stichbury, Senior Engineer for Counties Manukau Health, said the DHB has a number of diesel storage tanks, ranging from 200 to 37,000 litres in capacity, across its properties in Southern Auckland. The tanks supply emergency back-up generators for
its main buildings as well as several outlying properties. Diesel is a rich source of food for microbes “Diesel Bugs”. Once water, even the smallest amount, is introduced the microbes can start the growth process to form biomass(sludge). Counties Manukau District Health Board’s stock of diesel fuel is checked every twelve months for quality and undergoes mandatory cleaning and treatment if microbial (bug) results are found to be elevated.
Regular monitoring by sampling and testing is the key. He said microbes, if left too long, can cause extensive damage to both storage tanks and an engines injection system, not to mention disruption to an organisations operation. He recalled a recent event where a super yacht was treated for Diesel Bug. The microbes had eaten more than half way through the aluminium tanks walls, which in this case was the vessels hull.
The cleaning involves a blend of chemicals and fuel circulation through a Fuel Cleaning Rig, which utilises intensive filtration, water separation and ultra violet light. Kelvin Hieatt, Operations Manager for Diesel Clean, a company which specialises in monitoring and maintaining fuel quality, said prevention is better than cure.
Phil Stitchbury (right), senior engineer for Counties Manukau District Health Board and Kelvin Hieatt, consultant for DieselClean,at one of the DHB’s 37,000 litre diesel storage tanks, Middlemore Hospital.
NZ Manufacturer October 2014
19
Work spares us from three evils: boredom, vice, and need. – Voltaire
Want your great energy efficiency project to get the go-ahead? Learn to speak CFOish.
It’s often the staff at the coalface who are best placed to see the opportunities for system or equipment upgrades that will deliver real benefits for the company. The trick is persuading the CFO. Energy efficiency projects fit into this camp. Those close to the processes can envision the potential cost savings and other benefits such as increased productivity or improved staff safety, that often go hand in hand with an energy management initiative. All you need to do is to convince management – and that can be the hard part. With many competing priorities, energy efficiency may not be top of mind for your CFO. They also may not have the same level of understanding of the issue as the operations team, so need convincing about the business case. Greg Visser, EECA’s General Manager, Business, said that arguing for energy efficiency for its own sake won’t work – the link needs to be crystal clear between energy outcomes and the organisation’s strategic priorities. “One of the fundamental issues is the different language spoken by finance managers that make it harder for operations staff to ‘sell’ the case for investment internally,” said Greg. “To obtain approval for energy efficiency projects you need to present a solid
business case that speaks the CFO’s language. For example, a fantastic energy management opportunity turns up on the CFO’s desk disguised as a feasibility study.”
“Our experience shows that presenting the information in a language and format that the finance team recognises is a proven and successful way of securing funding for energy saving projects.
Mr Visser said that to provide a compelling argument to your CFO, it’s important to clearly state the value proposition upfront.
The payback we were able to demonstrate was enough to get the project over the line,” he said.
“Kick off with a concise summary including what the project entails, the benefits including estimated savings, the costs and the payback period. Make clear connections between the project and existing business priorities. Describe all of the benefits and include as many hard metrics around these benefits as you can,” he said. “It is also important to make sure you involve the right people in the development of the business case, especially those who will be affected by its implementation. Presenting an agreed view, supported by other business units, will strengthen your argument.” Jonathan Pooch, managing director of Christchurch-based Deta Consulting agrees that the way a project is presented is vital in deciding whether it gets the green light from the CFO. An energy management programme by Deta, which has saved a major New Zealand company $2.1 million over the last year, managed to get off the ground once the potential savings were made clear to the financial team.
Greg Visser said that energy services companies like Deta can often help by adding a fresh perspective. “When you are really close to a project, sometimes it is hard to articulate the benefits from a wider strategic point of view. Having an external person do the acid test on your business proposition can really help to crystallise thinking.”
How to speak CFOish. 5 Tips for writing a great business case: 1 Lead with a summary of costs,
benefits and estimated payback period 2 Include clear links between your
project and the organisations strategic objectives 3 Include risks and mitigations 4 Quantify the benefits 5 Consult the right people
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NZ Manufacturer October 2014
WORKSHOP TOOLS
Even if you are on the right track, you’ll get run over if you just sit there. -Will Rogers
The multiple challenges of machining ISO P workp
The ISO P classification of workpiece materials includes the metals generally referred to as steels. While steels alloys used in aerospace applications, steel alloys and irons are the workpiece materials most widely applied a Such wide use has spawned the development of a large selection of steel alloys with differing physical properties that generate a variety of metalcutting performance issues. Those issues, in addition to economic considerations born of high-volume production demands, make machining of ISO P steels a significant challenge for parts manufacturers as well as the makers of the tools used to machine them. ISO system The ISO metalworking workpiece material classification system is divided into six categories. The K group covers cast irons. Heat-resistant superalloys including nickel- and titanium-based alloys are in the S group. Materials in group H are characterised by their hardness and basically include steels hardened to 45-65 HRc. Stainless steels ‚‘alloys with chromium content greater than 12 percent’‚ make up the M group. The N category covers nonferrous metals, mainly aluminium as well as copper and brass. Finally, the P classification includes unalloyed, low-alloy, and high-alloy steels, including alloys hardened up to 400HB and stainless alloys with chromium content of 12 percent or less. Some long-chipping malleable irons are also part of the ISO P group. The classifications are based largely on the dominant physical properties of the different materials. Those properties essentially determine how the material reacts to being machined, and how in turn machining affects the cutting too. K group metals are characterised by abrasiveness, which accelerates tool wear. Heat-resistant superalloys in the S group generally have poor thermal conductivity, which results in heat concentration in the cutting zone that can deform a cutting tool. The hardness of the metals in group H creates great pressure on tools and generates heat as well. The M group is distinguished by strain hardening, in which the workpiece material becomes harder as it is deformed in the cutting process. The increased cutting pressure and heat generation can cause notch wear and other problems. Metals in the N category exhibit a tendency to adhere to the cutting tool, which leads to edge buildup, poor surface finish, and cutting tool fracture. Because each of the five ISO groups named above has a more or less dominant distinguishing physical property, cutting tools can be engineered, to a degree, to counteract the property’s negative effects on the cutting tool. Tools for cutting materials in the H group are biased toward strength, for example, while tools engineered to cut N category metals are sharp and designed to promote chip flow that minimises the occurrence of adhesion. Workpieces in the ISO P group, however, present more complex challenges. Steels in general and widely differing steel alloys in particular can exhibit more than one or even all of the properties that affect cutting tools, although usually not to an extreme degree. This poses a conundrum for tool development; in many cases, for example, a sharp-edge tool engineered to counter the adhesion tendencies of a low-alloy steel may not be able to withstand the abrasive characteristics of another steel composition.
Understanding metalcutting When machining steel alloys, finding a productive balance between tool performance properties is like dancing on a thin rope. Striking that balance requires an understanding of the nature of metalcutting and the interaction between the workpiece material and the cutting tool. Metalcutting is not a splitting process comparable to the way that a knife cuts. The metalcutting process instead puts pressure on the workpiece material until it deforms and shears away in the form of a chip. Many collateral effects accompany the shearing action. The mechanical forces required to sufficiently deform the material generate a great deal of pressure as well as heat leading to temperatures on the order of 800-900C. Interrupted cuts or machining parts with hard inclusions subject the cutting tool to impact. Beyond mechanical considerations, the high levels of heat and pressure can catalyse chemical reactions between the cutting material and the workpiece material, producing chemical wear in the form of diffusion or cratering. And last but not least, metalcutting involves a high level of friction. As the chip is formed and rubs over the tool, it creates friction and what are known as tribological effects; tribology is the science that examines surfaces in contact with each other at certain temperatures and pressures and determines the degree to which the surfaces will modify each other. All these forces and interactions produce varying results; perhaps the most important one is that the tool wears out.
Different steels, different tools The effects of machining on steel workpieces vary with the composition of the steel alloy and the process by which it is manufactured. Unalloyed steels with carbon content less than 0.25 percent; for example, have been developed for applications such as automobile axles that require strength and resistance to impact and fracture. These rolled or forged alloys produce chips that are difficult to break and that rub the surface of a cutting tool and produce crater wear and even adhesion problems. For these compositions, cutting tools are designed with sharp edges to more efficiently shear the workpiece material, and also employ coatings to resist chemical wear and provide lubricity to the cutting surface. On the other hand, high alloyed steels with alloy content over 5 percent, including elements such as manganese, can be hardened for use in components that require wear resistance and rigidity, such as hydraulic components and machine tool parts. The chips produced generally are easily formed and broken but the tools machining these alloys are subject to high pressure and high temperatures. If the unmachined workpiece was produced via casting or forging, a rough surface and possible inclusions from the mould require cutting tools with both toughness and resistance to abrasive wear.
In addition, development of specialised steel alloys continues unabated as manufacturers seek materials matched to the particular performance demands of their customers’ parts.
Example of an insert designed for steel turning. Classification workpiece materials.
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NZ Manufacturer October 2014
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piece materials
s don’t present obvious machining challenges on the level of materials such as heat-resistant aerospace across all industries. Environmental consciousness
Example of an insert designed for steel milling.
Economic considerations The traditional goal of machining operations is to produce more parts faster, and therefore requires application of the most aggressive cutting parameters possible. Other issues, however, modify that simple goal.
A relatively new consideration also influences the choice of machining parameters for steel materials. Many manufacturers are now pursuing environmentally conscious or ‘green’ machining initiatives. These include reducing energy consumption and minimising the waste generated during the machining process. Although technological machining challenges remain of primary concern when processing exotic metals, environmental concerns are rising in importance when machining steels. One way to reduce energy consumption is to reduce cutting speeds. In many cases, manufacturers can maintain productivity by proportionally increasing feed rate and depth of cut. In addition to saving energy, such strategies also result in longer tool life. That in turn reduces the waste stream from the machining operation in that fewer cutting edges and ‘throwaway’ inserts are consumed to produce the same number of parts. Use of lower cutting speeds also generates less heat, which can reduce demands for metalworking coolant, itself an undesirable waste product of the metalworking process.
Economic considerations can play a large role in the selection of cutting parameters. Parts such as aerospace components produced from exotic alloys most often are made in relatively low volumes. Manufacturers machine the parts at a pace aimed to maximise process reliability and preserve the expensive workpiece materials and costly manufacturing time already invested. As a result, speeds and feeds employed with advanced workpiece materials usually are productive but conservative. The approach to machining of steel components often is different. Many steel parts are manufactured in high volumes and as quickly as possible to maximise economic return on relatively simple parts machined from less-expensive workpiece material. Higher cutting speeds, the typical path to higher productivity, require cutting tool substrates with the ability to retain strength at high cutting temperatures. In light of the growing selection of steel alloys, it can become necessary for manufacturers or machine shops to consult with cutting tool manufacturers to find the tool grade and geometry best suited to a particular application. Ongoing tool development is aimed at creating tools that can cope with the multiple issues presented by steel alloys. Manufacturers seek tools that are sharper yet stronger, with coatings and geometries designed to overcome the heat, pressure, chemical and adhesion mechanisms of wear.
Specific Energy Graph.
Conclusion Because ISO P steels are perceived as being overly familiar and widely applied on routine parts, machining operations involving the alloys usually are not subject to intense interest and analysis. However, when manufacturers understand that steels present multiple machining challenges that can be overcome with careful tool selection, high part volumes can make even small improvements in machining productivity significant contributors to profitability and even environmental preservation.
Racing robots at Engineering Design Show Programming Lego robots to have a sense of direction has been the task for a class of University of Waikato engineering students this semester. The robots were put to the test at the Carter Holt Harvey Pulp & Paper Engineering Design Show, in a race to determine the fastest, most accurate prototype. “Each robot must be designed so that it can ‘sense’ its way around a given track at the fastest speed possible,” says University of Waikato engineering tutor Alista Fow. Each pair of students is given the same basic set of hardware. “What defines a successful robot largely comes down to how the team has programmed the software to work with the
hardware, plus we’ve also seen a lot of experimentation with the number and placement of the sensors.” The Software Engineering students have spent the semester designing and building the Lego robots as part of a second-year engineering design paper. While the students have been provided a practice track for testing, the race day track will be at least twice the size and the robots will be required to navigate the track with additional obstacles, which will add to the challenge. “Good scores in the competition will be reflected in the students’ final mark for the project, so there is a lot riding on a good performance.” The robot race is part of the Carter Holt Harvey Pulp & Paper Engineering
Design Show from 21-22 October. The race is scheduled for 11am Wednesday 22 October in the first floor foyer of S Block at the University of Waikato. The event is open to the public.
Engineering, Mechanical Engineering and Software Engineering.
During the two- day event, second, third and fourth-year Engineering students showcase their research and design projects in the forms of posters, displays and seminars. Topics covered include Chemical and Biological Engineering, From left, University of Waikato Bachelor of Engineering (Honours) Electronic Engineering, students Jeff Mo, Sheena Mira-ato, Brad Hansen, Ryan Jones and Materials and Process Peter Oomen with the Lego robots. www.nzmanufacturer.co.nz
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NZ Manufacturer October 2014
WORKSHOP TOOLS
Happiness is not something you postpone for the future; it is something you design for the present. -Jim Rohn
Refining empty container transport Hammar has refined a solution to the costly task of transporting empty or lightly-filled containers and flats without tying up large sideloaders or large, expensive prime movers. It’s the all-new Hammar 140 series, a versatile lightweight sideloader/crane ‘clip-on’ system, still with an impressive 16-tonne SWL, which works with smaller trucks and can be temporarily fitted to an existing chassis. Following success with the concept in Australia, the first of these units are now available in New Zealand, arousing interest among transport companies. Everyone is faced with the issue of having to move empty or lightly-filled containers, but they don’t want to use their big trucks in such loss-making roles, so now they can reduce costs by using our 140 sideloader system and increase the versatility of their operations. The Hammar 140 series is derived from the highly successful ML 12 series. Emphasis of the design has focused on usability and flexibility, leading to a cost-effective lightweight container-shifting solution. An unbelievably versatile sideloader with its clip-on sub-frame, the Hammar 140B is easily mounted onto all kinds of vehicles, so long as they are equipped with 20’ twist locks, providing a 16-tonne SWL, making it more than capable of dealing with any empty or partly loaded container.
With its onboard petrol engine each unit is totally independent and can be remotely controlled by the driver, just like all the other Hammar sideloader models. The hydraulic tank and pump is mounted with the engine on the crane. No special tools or connections are needed for mounting the unit onto a truck or chassis and the position of the cranes can be optimised using the twin corner castings spaced 200mm apart, then finely adjusted in steps of 50mm. The complete Hammar can be removed from the vehicle by using the hydraulic stabiliser legs on the lifting side and the mechanical utility support legs on the opposite side, then simply lift it up and drive away. Alternatively, a forklift can also be used to lift the Hammar, using the forklift tyne pockets in the sub-frame. Another advantage is that the lifting side of the unit is easily changed from left to right – just back under from the other end and the lifting side is the other way around. With its very long reach, the Hammar 140 is able to place empty containers outside the reach of its stabilisers, enabling drivers to easily manoeuvre into position. It has the same fast handling speed as other Hammar models, so jobs can be turned around quickly. This series is equipped with the company’s PLC-based safety and control system, ‘safety+, which monitors the lift cycle and ensures safe lifting at all times,
The new Hammar 140 series sideloader system is designed to help transport companies move empty or lightly-loaded 20’ containers more cost-effectively.
including a gross load indicator with an accuracy of ± 400kg. It also allows the crane arms to be deployed before the stabilisers, enabling easy chain connection to the container before loading. Each crane unit consists of one crane base, one lower arm, one upper arm and three hydraulic cylinders mounted on a light weight frame of hollow beams. The arms are carried in robust low friction bearings. The cylinders are fitted with spherical hinged bearings to eliminate flexing stresses, reducing seal wear and prolonging service life. The Hammar safety+ system provides a safe working environment for operators up to a maximum weight of 16 tonnes. The cranes are built of high grade steel to minimise the unladen weight, providing maximum payload._The hydraulic directional valves and engine installation is protected with safety bars.
World’s first cloud-connected cable certification tool Now with LinkWare Live, the Versiv family of certification testers lets cable installers upload, analyse and manage copper and fibre test results—anytime, anywhere. Fluke Networks has unveiled LinkWare Live, the first cloud-based service that lets contractors, cable installers and project managers using the Versiv family of certification testers to upload, manage, and analyse certification test results from cabling projects—anytime, anywhere. LinkWare Live works with DSX-5000, OptiFibre Pro, and CertiFibre Pro certification testers to optimise project management and safeguard contractor profitability by providing real-time access to testing results, extending support to technicians in the field, and eliminating costly truck rolls simply for tester transport back to the office. LinkWare Live is a free service available to all Versiv customers.
According to recent Fluke Networks surveys of more than 1,000 cable installers (who had collectively installed approximately 1 million links in the previous month), poor test results management creates a significant drag on productivity and profitability: * eighty-three per cent reported having one or more test results management issues in the month prior to the survey * the average time contractors spent dealing with test result issues in a single month was 15.2 hours— nearly two full workdays, not including the hours required to get the test results back to the office for analysing and reporting * half of the respondents said it would be beneficial to access project status information from any location. Project managers struggle with manual, error-prone results management processes Collecting certification test results is a significant challenge because they are stored in testers that frequently move from one job site to another. These job sites can be hundreds of kilometres away from one another, as well as from headquarters. Accidentally erased or failed memory cards can negate several days’ worth of work, leading to costly truck rolls, lowered profit margins and delayed payment. LinkWare Live saves time, reduces rework and improves profitability
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By uploading tests to LinkWare Live regularly, project managers can save trips solely to collect results, prevent data loss and continuously track project progress. LinkWare Live also automatically organises test results by job, eliminating the painstaking task of manually combining files from multiple testers. Managing test results through a cloud-based service offers significant advantages: * increased productivity by no longer needing to manually transport testers from the field just to download test results * reduced time spent categorising and compiling test results by automatically consolidating them into the correct job * less rework by reducing the likelihood of losing test results when testers or memory cards are lost, stolen or erased * faster troubleshooting by providing instant access to results from anywhere * real-time visibility into project status from any location. Using LinkWare Live, contractors can achieve greater project profitability; increase the potential for more project wins; and use its unique analytics and benchmarking to improve installation, certification and troubleshooting efforts out in the field.
2014 NZ Manufacturer October 2014
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A professional is someone who can do his best work when he doesn’t feel like it. -Alistair Cook
TYC adds Rückle pallet changer to gantry-type machining centre The effective combination of different machining operations as well as minimal non-productive times are decisive for profitability when it comes to manufacturing pump casing for airplane engines. Machine tool manufacturer Strojirna TYC has now developed the optimum solution for a customer: the 5-axis gantry machining centre TVCTP 160/2 CNC is designed for combined turning, milling and boring in one clamping position.
Every change in work piece position can jeopardise dimensional accuracy during milling and boring operations. The company uses complicated fixtures to clamp the blank of the pump casing to the table. Set-up was complicated every time.
For long machine operating times, efficient tool replacement and high productivity the company has integrated the TRT 650 rotary table and automatic linear-axis pallet changer system from Rückle GmbH Werkzeugfabrik.
The gantry machining centre FVCTP 160/2 with 5 CNC simultaneous axes is the FVC machine designed specifically for the customer for combined machining operations: turning, milling and boring.
Strojirna TYC specialises in the development of modular gantry machining centres. The company was founded in Pilsen in 1992 and manufactures as core products FVC and FPPC machines. They cover a wide range of technical operations such as roughing and finishing and have high rigidity and outstanding damping behaviour during machining operations. The machining centres from Strojirna TYC are used in the manufacturing of pressing tools, dies for forgings, moulds and forming tools, and moulds intended for injection moulding. Principal customers include suppliers to the aerospace and automotive industries.
The gantry-type design guarantees high part quality since the work piece weight and size do not influence the machining process. Equipped with a continuous-path 3-axes fork-type milling head, the pump casing’s flexible horizontal and vertical all-over machining is guaranteed. The spindle speed is 5,000-30,000 rpm. The magazine can hold up to 80 tools; tool and head changing is automatic. Centre mould and tool cooling ensures temperature stability at high machining speeds. Pallet change in 135 seconds
between pallet station and gantry machining centre. Once the operation has been completed, the rotary table travels to the pallet storage station installed in front of the portal. The switch between the pallets with the already machined part and the blank takes around 135 seconds. The part on the rotary table is then automatically fed to the tools in the machining portal. And round it goes Rotary table TRT 650 has a warp-free compression ring. Designed to cover a wide area, it guarantees permanent, stable work piece positioning - unlike clamping systems designed to hold the work piece only at specific points of contact. A measuring system on the table axis captures positioning accuracy in addition to rotational speed and guarantees that the TRT 650 aligns the parts with a part accuracy of 1/- 2 angular seconds. The user also profits from axial and radial run-out accuracy in the range of a thousandth of a millimeter. The rotary table also comes with a through-hold for power-operated chucks and a seal to prevent the ingress of chips and coolant emulsion.
Use working room efficiently, increase capacities
To clearly reduce down-time, Strojirna TYC relies on an automatic pallet changer and a rotary table from Rückle. The rotary table is equipped with a pallet clamping system and allows pallets to be exchanged flexibly.
The gantry machining centre FVC best demonstrates what it can do in the machining of large, heavy and bulky work pieces like the pump casing of one of TYC’s customers.
The pallets have an outer diameter of 1250 mm and are designed for loads up to 6t. “The automatic pallet changing system and rotary table TRT 650 from Rückle are efficient both in cost and time..
The advantage of the direct drive is its high power density and its ability to accelerate. High speeds, among other things, are the prerequisite for high surface quality during work piece finishing.
The manufacturer of smaller airplane engines and turbines milled and bored the component on two separate machine tools. Between processing operations, it was necessary to rechuck and reset the work piece, and balance and position it so as to be rotationally symmetrical each time.
While machining, customers can now prepare another pallet with the clamping fixture and a work piece. This reduces set-up time.
The torque motor reaches speeds of up to 400 rpm as well as torques of up to 3,800 Nm. It also has the necessary rigidity and is thus ideal for highly dynamic applications, like the turning of the pump casing. Fluid-based cooling guarantees high temperature stability as well as low-maintenance operation.
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The housing of the rotary table TRT 650 is based on a linear continuous sliding axis from Rückle and can correspondingly swing back and forth flexibly
The Rückle table is mounted on an anti-friction bearing and has a torque motor drive.
NZ Manufacturer October 2014
When writing the story of your life, don’t let anyone else hold the pen. -Harley Davidson
Projecta clamps down on voltage Testing electrical current in buildings, vehicles, equipment or marine applications has been taken to the next level with the introduction of the new Projecta DT910 test meter in New Zealand. Superceding Projecta’s popular DT900 digital clamp meter, the new DT910 is an all-in-one test meter that retains the vast array of applications of its predecessor, but packs even more functionality to reduce the tool count in the workshop or on the utility belt. Loaded with features, but simple and intuitive to use, the DT910 is an all-in-one test meter that will quickly measure and accurately display a myriad of electrical test data. A clamp meter is an electrical tester that combines both a voltmeter with a clamp-type current meter, but with an in-built current transformer, which can be used for testing any combination of AC or DC. What separates a digital clamp meter like the DT910 from an ordinary multimeter is an ability to measure AC/DC current (up to 400 amps) without interfering with the test circuit, by way of a clamping mechanism that can test wiring up to 38mm in diameter. It is also capable of measuring low amp current flows, which have traditionally been difficult with some clamp meters. And now it offers more practical options for the user. These include a new, non-contact voltage detector, which allows the user to safely measure AC live voltage without contact or breaking the wire insulation. Projecta has also added a temperature tester that can display up to 250°C (300°C for short periods) and a capacitance tester that negates the need for a separate meter. Like its predecessor, the DT910 also measures DC voltage and frequency, resistance and continuity, and can be used to test diodes as well. A larger screen now offers better accuracy at lower currents and a ‘data hold’ function for capturing on-screen readings, whilst auto scaling provides voltage/resistance measurements in relevant scales for quick and easy readings. It is also designed and made to CE approval.
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Thin-walled tubes in lightweight construction The subject of lightweight construction remains right at the top of the agenda of the automobile and aviation industries.
bending specialist has fine-tuned his computer controlled bending machines especially to these properties.
Thin-walled tubes offer several advantages here, because on the one hand their low eight has a positive effect on fuel consumption of automobiles and aeroplanes. On the other hand they reach the operating temperature, which is required for the catalytic conversion process of the exhaust gases, faster, which in turn leads to improved CO2 values.
If flexible radii and efficient production of complex bent tubes are needed in one operation, the machines with multi-radius technology (MR) and with two bending heads (Twin) are the suitable choice. All machines can be integrated in existing bending cells and are fitted with our new control, which takes care of quick production.
During the forming process they are, however, very demanding and prone to cracking. Especially for bending these tubes the tube bending machine manufacturer Schwarze-Robitec has optimised the transport boost of its CNC machines and adapted the bending tools. Equipped with a vertically traveling pressure die assembly, the bending forces of the CNC machines are exercised precisely on the thin-walled tubes. Due to the better adjustability of the forces the machines achieve, even with thin-walled tubes made of titanium, aluminum, copper or stainless steels such as No. 1.4509 or 1.4512, the most precise bending is the result. While the usual tubes, for example, have a wall thickness of 60 x 1 millimeters, the thin-walled tubes only have 60 x 0.6 millimeters. The tube
Due to the vertically traveling pressure die assembly, the bending forces of the CNC machine are exercised precisely on thin-walled tubes.
Precious metal and alloy XRF analyser Non-destructive testing (NDT) of manufactured materials by X-ray fluorescence (XRF) is a crucial tool in many industries. The latest handheld XRF analyser from Olympus, the Delta Element, is ideal for scrap metal sorting, positive material identification (PMI), alloy QA/QC, and precious metals analysis. The Delta Element is the most affordable hand-held XRF analyser produced by Olympus to date. The model was developed for those customers who require the speed, reliability and ease of operation expected from the Delta Premium, yet do not require the extended element range necessary only for some specialty applications.” With a powerful X-ray tube and Si-PIN detector, the Delta Element provides quick identification, screening and sorting of alloy and precious metals.
The analyser still incorporates the latest hand-held XRF technologies at an affordable price for small to medium businesses. It’sunique combination of features is ideal for most alloy identification and sorting applications. The analyser is a powerful tool, yet simple to operate. Operators can switch between precious metals and alloy mode at the touch of an onscreen icon. The Delta Element displays measured results and grade identification in seconds. With Olympus’ unique Grade Match Messaging (GMM) feature you can assign customised messages to any grade and use real-time or pop-up messages for immediate sorting instructions and improved user efficiency. The “Delta Report” software then allows for fast and professional reporting and certificate generation of any analysis.
The hassle free apprenticeship service Contact Apprentice Training New Zealand to find out how we can recruit, employ and manage apprentices to train in your business.
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NZ Manufacturer October 2014
THE FUTURE OF MANUFACTURING
Yesterday’s home runs don’t win today’s games. -Babe Ruth
Asian Technical Summit successful for global CAM leader Delcam, a global leader in computer-aided manufacturing, with an annual R&D budget of 25-percent of sales, officially presented the fruits of its recent marriage to the global computer-aided design giant, Autodesk, at its annual ‘Asian Technical Summit’ held recently. NZ Manufacturer will bring you additional coverage in the coming months on developments from a company which reinvests 25-percent – yes, a quarter of all profits -- into R & D annually. And is committed to continuing doing so even in straightened times for manufacturing globally. This was not just another company blowing off on its capabilities. Delcam is the company in the CAM global industry. Says who? Try the recent NC Software Market Analysis Report from leading US analysts, CIMdata. Their annual report showed Delcam repeatedly achieving the highest vendor revenues and banking the largest chunk of end-user payments of all the CAM-centric companies globally. This organisation has thus completed 13 years as the world’s leading specialist supplier of CAM software and services. It remains the largest developer of product design and manufacturing software in the UK too. (Which possibly accounted for the attendance of the British Ambassador to Korea at the Conference Dinner, despite having to undertake a taxing flight schedule to get him in and back out.) “Our success,” says ex-CEO, now President, Clive Martell, “is indubitably based on being able to retain the
highest-quality people in what CIMdata acknowledged is the ‘largest development team in the CAM industry, with over 200 people’ producing our manufacturing software.” (Martell has a BSc, MSc and an engineering degree behind his name.) Having mixed with a number of this team and seen the rockstar status they enjoyed with the 70-odd technical representatives from all the major manufacturers across India, China, Japan and SE-Asia, I can testify to the exceptional quality and depth of industry experience on offer; and the appreciation and admiration of the attendees, no slouches themselves in terms of their own capabilities and achievements. And they have a fixed eye on the future, with 32 top-ranking students added to the mix for the recent summer university holidays at their facilities in Birmingham UK. In terms of their acquisition by Autodesk, Delcam remains a wholly-independent subsidiary and its eye-watering 25-percent commitment to R & D is cemented into the deal. Robert ‘Buzz’ Kross, Senior VP for Design, Lifecycle and Simulation Products at Autodesk attended the full two-day programme, which included a visit to the world’s largest manufacturing plant on a consolidated lot; some 700-rugby fields laid side-by-side, with a deep-water wharf at the end of the ‘mini-state’, capable of simultaneously loading three 50,000 ton vehicle transporters. To give you an appreciation of where Autodesk sits in the design sector, it has 12-million legal users of its software, with some half of that free to students – ensuring their future market. “What impressed me in the negotiations leading up to the acquisition was Delcam’s insistence on continuing to commit to that 25-percent R & D reinvestment. That wasn’t negotiable. And we welcome that, since Autodesk is looking to their working with us to accelerate the development of a more comprehensive Digital Prototyping solution and delivering a better manufacturing experience for all our customers,” Kross says. Martell describes Delcam as “involved with the manufacture of products with complexity, (manufactured by a complex process), which is either subtractive, adaptive or additive”.
Clive Martell. www.nzmanufacturer.co.nz
“You could say we supply the software and services to help manufacturers to make great products in the advanced
manufacturing sector, health care, footwear and artistic solutions.” “We see our joining up with the $2.3-billion Autodesk giant, with 8,000 employees; 4,000 development partners; and 2,400 channel partners, as the ultimate blended marriage of CAD and CAM. Already, in the brief six months since the GBP 172-million deal, we are leveraging benefits off Autodesk for our customers and vice versa. And that’s clearly just the beginning.
Delcam reinvests 25-percent - yes, a quarter of all profits into R & D annually. And is committed to continuing doing so even in straightened times for manufacturing globally. “The complementarity of our joint product offering, added to the ability now to blend aspects of products to enable clients to cover the full spectrum from concept to final manufactured product, whether they be in automotive, electronics, shoe, dental, rehabilitation, robotics, to ‘you-name-it’, effectively ‘under one roof’ is expected to provide major growth opportunities for our customers and ourselves. “For example, Autodesk’s Alias automotive design software is a global market leader, when it comes to concept and styling, to which we can add our award-winning software for milling, reverse engineering, marking out and inspection. Autodesk Moldflow is the leading software for mould-filling analysis. We, in turn offer software for: •Mould design •Milling •Electrode design.” Integration proceeds apace with Delcam’s innovative FeatureCAM being now certified by the Autodesk Inventor Certified Application program, “to ensure quality and interoperability with Autodesk Inventor”.
Delegates to the Asian Technical Summit were treated to the vast array of innovative and updated offerings from the company. (What is described as the meeting of the world’s largest user group was to follow, at the same venue, led by Delcam’s JV partner in Korea.) Topics included: Vortex high-speed roughing, and also Feature-based machining (Sanjay Thakore); Five-axis machining with PowerMILL, as well as Reverse engineering with PowerSHAPE, plus Clay milling for automotive styling (Mark Forth/ Charlie Jones); Machining with robots (Vineet Seth) – in the more traditional ‘manufacturing’ sense. Delegates were fascinated with client presentations, including the use of Delcam Electrode by Schneider Electric; the robot machining of more comfortable wheelchairs by Megalong Positioning, an Australian company. Delcam’s Australasian arm’s Mike Taylor demonstrated the quantum leap in producing better orthotics, faster and the ubiquitous Charlie Jones covered dental advances. Finally, Graham Vollans of Delcam CRISPIN outlined the innovation Delcam’s Footwear CADCAM is achieving in that monster global market. It is all a long way from Delcam’s genesis in 1965, when Donald Welbourn, Director in Industrial Co-operation at Cambridge University, had the vision to see the possibility of using computers to assist pattern-makers to solve the problems of modelling difficult 3D shapes. Today the company has shifted down the road to Britain’s industrial heart, in Birmingham. As you’d expect with a pedigree like this and consistent and rapidly-rising sales success year-on-year, Delcam is a significant sponsor of the Bloodhound SSC project, to break the existing land speed record and then go on to smash 1,000 mph in 2016, by providing breakthrough software and machining critical parts to withstand the incredible pressure they will have to perform under. (An experienced jet pilot will ‘fly’ the vehicle on a salt flat in South Africa.) For the last two years Delcam has been Asia’s Best Manufacturing awardee; were last year’s best CAD solution provider in Britain; and 10 out of 11 coin award finalists last year, including the winning French Mint, used their ArtCAM software.
Introducing
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NZ Manufacturer October 2014
People inspire you or they drain you pick them wisely. -Hans F. Hansen
In-House grinding keeps tight control on quality Samsung Machine Tools (SMEC) new production facility in Gimie city South Korea has the latest surface grinding technology in their large bridge type machine bed grinding machines. These impressive machine precision grind the box slideways of the SMEC range of premium CNC machine tools. Moving these large machines for the original Samsung factory to the new location took a considerable effort as each grinding machine weight is over 60 tons. The machine are disassembled into smaller parts for road transport then reassembled and bolted on to concrete foundations at the new factory. Once in position it can take up to 4 weeks to level the machines with laser alignment. With their own in house grinding capability the surface grinding quality control can be kept to a consistant and repeatable level that can be difficult to obtain through out sourcing this work type of precision process. On large lathes and milling machines this grinding accuracy becomes even more
important as large machine tools are expected to have the same accuracy as smaller machines with less axis travel. Surface grinding of the box slideways is an important part of machine tool manufacture with surface flatness and smoothness the prime considerations. Flatness and straightness of the ground surface determines the final machine accuracy with usual values in the low micrometer (um) range for CNC machine tools. Surface finish determines the smoothness in the motion of the sliding components which has a direct effect of the traversing speed in feed and rapid motion. Smooth motion also effects machine tool accuracy with the acceleration and deceleration of axis components. If the initial start of the motion is not smooth then additional load is placed on the ball screw and jurking can occur as the ball screw load fluctuates at low axis traverse speed. The high level of surface grinding accuracy achieved by Samsung Machine Tools allow the axis sliding components to move accurately and smoothly to provide their machine tools with a high cutting precision and finish. For more information on the Samsung Machine Tools range of precision machine tools contact Phil Robinson and Quentin Rowe at Revolution Precision Machinery www.rpmcnc.co.nz Email: sales@rpmcnc.co.nz Phone AKL 265 0380 CH’CH 960 0892.
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NZ MANUFACTURER • NOVEMBER 2014 Issue • Features
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The Future of Manufacturing SME’s – How are they doing in today’s marketplace? Manufacturing Software The Busy Workshop Advertising Booking Deadline – 20 November 2014
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NZ Manufacturer October 2014
The pessimist complains about the wind. The optimist expects it to change. The leader adjusts the sails. -John Maxwell
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ANALYSIS
Economic Diversity -John Walley, Chief Executive, New Zealand Manufacturers and Exporters Association For any economy, diversity in the things you make and who you sell to is important to lower risks and ensure a shock resistant resilient economy. However New Zealand has generally been going in the opposite direction, relying more on a narrow range of simple products, milk powder, meat and logs, and single large market, China. In the below graph, you can see that both processed and unprocessed
primary have been improving strongly since around 2007. These sectors are less diverse and have been led by strong growth in milk powder, meat and logs – all of which were boosted by the China FTA, taking effect in 2008. In contrast, the simple, elaborate and miscellaneous manufacturers (which covers from low tech, through to high tech manufacturing) have been stagnant, even decreasing over this time.
This risk of relying so heavily on a few large sectors is currently being demonstrated, with the substantial falls in dairy prices. Global dairy prices were high last season, but have fallen 45% since February, and the Fonterra payout has decreased from $8.40/Kg last season to $5.30/Kg, with potential to fall further. This is a real concern for many farmers, those who supply the industry and even the New Zealand economy, as this could see a loss of $5b to our economy (2.2% of GDP). A substantial minority of dairy farmers have very high levels of debt – and as the payout falls, and borrowing costs continue to rise, as indicated by the RBNZ, many may be running at a loss, having to borrow to service existing debt – Federated Farmers indicated nearly a quarter could be running a loss this season at a $5.30/Kg payout. This is exacerbated by the failure of the NZD to autostabalise, that is, fall as the commodity price falls, making the reduction in prices worse for farmers, as well as keeping the pressure on exporters and import competing manufacturers.
Shock resistance follows from product and market diversity - China has been an impressive market for milk and logs, lifting our exposure to problems in that market. Policy makers need to consider how to improve our economic diversity. While the success of our agriculture industry is vital for our future, it does not have to be the only source of growth. The correction of tax incentives and policy targeted at broad growth of our manufacturing sector can build resilience and make our economy stronger and more prosperous.
Work and personal lives to blur The boundaries between work and personal life may disappear as companies assume greater responsibility for the social welfare of their employees, according to PwC’s report, The future of work: A journey to 2022. This is just one outcome that may evolve in the workplace of the future, driven by radical changes in technology and social and demographics of the workforce within the next eight years. PwC Partner and HR transformation specialist Debbie Francis says, “New technologies, data analytics and social networks are having a huge impact on how people communicate, collaborate and work. Many of the jobs of tomorrow haven’t even been created. “Workforces will become more diverse as generations collide, with people working longer in their careers and traditional career paths set to become a thing of the past. “Organisations are already grappling with skill shortages, managing people through change and creating an effective workforce and creating more sophisticated people management techniques, increasing the importance
of social drivers and relationships as crucial to business success, are other key issues that companies will face,” Mrs Francis says. “HR is at a crossroads. Once perceived as service-oriented and only reactive to business needs, the demands of tomorrow’s workplace and business environment are going to force major change and it’s not just HR that will need to act, business leaders will need to lead their organisations through these seismic shifts. “The HR function will go one of three ways: they will take on a wider people remit incorporating and influencing other aspects of the business, become the driver of the corporate social responsibility agenda within the organisation or be seen as transactional and almost entirely outsourced.” The report identifies three future ‘worlds’ workers of today want to be a part of which provides a lens through which to examine how organisations may operate in the future. “The characteristics of these ‘worlds’ will be shaped by the coming changes in recruitment, reward and employee engagement strategies as they evolve over time.
“While things will happen that we cannot predict, we can still be prepared and plan ahead for long-term viability. Organisations will need to prepare to undertake new learnings and adapt to these coming challenges to succeed. Whatever path you follow, work is going to look very different for everyone in 2022,” concludes Mrs Francis. The three future ‘worlds’ of work * Blue World - where corporate is king, there’s a relentless pressure to perform, these elite organisations push back the borders of innovation and possibility, employ only the best, and offer long-term job security and reward. Only 10% saw this as their ideal employer. * Green World - the caring companies, that rethink their values and goals, have a powerful social and environmental conscience, and whose values closely match those of their employees. 53% of those surveyed chose this as their ideal employer. * Orange World - where small is beautiful, these organisations fragment into looser networks, brought together by technology,
with social media heightening the connectivity. 33% opted for this as their ideal employer. A quiz is available so visitors can discover if they fit best in Blue, Green or Orange worlds: http://pwcprd-wip. pwcinternal.com/en_GX/gx/managing-tomorrows-people/future-of-work/ work-worlds-quiz.jhtml The future of work: A journey to 2022 is based on a specially commissioned survey of 10,000 people in China, India, Germany, the UK, US, Australia and New Zealand who gave their views on how they thought the workplace would evolve and how this might impact their employment prospects and future working lives. There is also input from 500 HR professionals worldwide, who share insights on how they’re preparing for the coming changes. The projections build on the work started in 2007 by a team from PwC and the James Martin Institute for Science and Civilisation at the Said Business School in Oxford, who came together to develop a series of scenarios for the future of people management. www.nzmanufacturer.co.nz
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NZ Manufacturer October 2014
BUSINESS NEWS
When you change your thoughts, you change your world. -Norman Vincent Peale
Rural contractors question machinery and parts costs Rural Contractors New Zealand is questioning the high cost of machinery and parts that contractors and farmers are currently paying. RCNZ President, Steve Levet says with the falling forecast milk price for the coming season dairy farmers are going to be careful when making decisions this year – and cost cutting will be top of mind. “With the reality of a lower dairy payout this year, sheep and beef farmers already under the pump and arable producers also feeling the squeeze – further pressure is going to come on contractors to at least hold or reduce our costs,” he explains. “Rural contractors do not have the luxury or the ability to absorb continued cost increases and just pass them on in our pricing to clients. So while farmers are not able to wear any price increases; contractors certainly cannot afford to carry on losing money either.”
Mr Levet says rural contracting is a tough business and in today’s highly competitive environment it is not easy to make a profit.“Contractors are already running pretty tight operations and there is not a lot – or in most cases any – fat to cut.” He says like their farmer clients rural contractors will have to look at reducing their costs. “For most rural contracting business; one key area of cost is that of machinery and parts. Ask anyone about the costs of parts and they will all tell you the same thing: eye-watering!” Mr Levet says this has seen many contractors – and farmers – look at sourcing parts from either non-aligned dealers and/or the internet. “Just like consumers in the other parts of the economy; many rural contractors are finding the attraction and availability of cheaper goods via the internet a genuine way for them to cut costs.”
He admits there are risks of not sourcing parts from machinery dealers – including no guarantee of such goods being ‘genuine’ parts and/or the lack of service back-up when using these non-dealer-sourced parts.
Mr Levet says he is not making a direct criticism of machinery dealers, but highlighting an example of the cost problems facing rural contractors and what some are doing to reduce their costs.
“Anything that will help lessen our costs and improve the bottom line has got to be a good thing.”
“I think most of us would agree this situation is not ideal and if there is a way that both rural contractors and machinery dealers can resolve this issue – then RCNZ is keen to be party to this,” he adds. “Anything that will help lessen our costs and improve the bottom line has got to be a good thing.”
“Yet, despite such risks, many rural contractors are still choosing to source their parts this way – purely because of the huge price savings they can make by doing this.”
Kiwi business owners embrace DIY governance It’s not quite “number eight wire” but it’s a low cost way for New Zealand business owners to get experienced minds keeping a watch over their business fortunes.
US Head Office singled out the New Zealand network in August this year, because of the comparatively long length of time each owner remains in the network.
New Zealand owners of small and medium businesses have taken enthusiastically to a new concept where they help each other as board members of their own companies.
Stephen James, a graduate of the London School of Economics, brought the concept to New Zealand in 2012.
Based on a US concept, over 50 business owners in Auckland have so far adopted “The Alternative Board” style of helping each other through challenges.
He was presented with the award at The Alternative Board’s annual conference in Denver last month . The New Zealand boards have shown a retention rate of over 90 percent of members in the past year, one of the highest retention rates in the world.
The concept is based on the simple idea that 70 percent of any challenges faced by business, are exactly the same - no matter what the business.
Allen Fishman, the founder of The Alternative Board, said the US office is delighted at how well it has caught on in New Zealand.
“This theory effectively makes the 70 percent of the problems of a commercial fisherman the same as a fashion retailer,” said Stephen James, who brought “The Alternative Board” to New Zealand in 2012.
“It appears to have become entrenched in New Zealand very quickly,” he said.
The concept originated in the US in 1990 and is now in eleven countries and with almost 3000 business owners. They operate as Boards of directors for each other in groups of up to ten owners. They meet monthly and also spend individual time with an experienced business adviser. www.nzmanufacturer.co.nz
1988 until 2003 and in that time was involved in all of the transactions which took Rank Group from a value of around $2 million to $2 billion. He said he brought The Alternative Board concept to New Zealand because he enjoyed the role of being a sounding board. “I enjoyed that role with Graeme and thought The Alternative Board was a perfect way to continue. It’s very satisfying” said Stephen. He wants to expand The Alternative Board through New Zealand in the
form of regional franchises but acknowledges that finding the right people is a challenge. “The skills needed for this type of business service are not so common, so it will be a patient expansion,” he said. Since 2012 he has been joined by two regional franchisees in Central Auckland and southern Auckland. Gordon Stuart is a former senior bank executive and Richard Simmons has owned and grown several businesses of his own.
“Not only was Stephen James able to quickly develop a critical mass of board members in New Zealand, his high rate of member retention underscores that our service is delivering real value to New Zealand business owners. “I think there is also strong evidence that Stephen’s leadership is also special,” said Mr Fishman. Stephen was a key executive alongside Graeme Hart of Rank Group from
Stephen James (right), Richard Simmons (left) and Gordon Stuart of the New Zealand arm of The Alternative Board.
NZ Manufacturer October 2014
A man is but the product of his thoughts. What he thinks, he becomes.
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REAR VIEW
-Mahatma Gandhi
Actions speak louder than words - Nick Inskip “There is no reason we can’t be 100% renewable,” said Blair Walter, Aurecon’s global head of renewable energy, when interviewed recently on Radio New Zealand National. He went on to say, “We need a more active carbon policy.” The reality for Aurecon is that despite significant demand for their services overseas by countries powering along the renewables pathway, at home there are few opportunities. This is because while we have a policy goal of 90% renewables by 2025, which is just 11 years away, there are few obvious strategies in place to achieve it. 90% renewables also only applies to electricity generation and not the total energy used in country.
energy is around 5% which isn’t that much different to Australia’s, and they aren’t considered leading lights in the area of renewable uptake. One thing is clear, if we look at countries with a similar population size to ours, such as Scotland, they have a 100% renewable electricity goal by 2020 and are on track for 50% by 2015.
strategy to encourage electric vehicle uptake where electric cars now account for over 20% of new car sales. Their active strategy involves removing all taxes from buying an electric vehicle, free parking in major cities, toll free driving and free charging at charge stations.
The difference is a series of strategies and enabling mechanisms in support of the goal, so if Aurecon was a Scottish company they would have lots of local demand for their internationally-recognised services.
The active strategy approach also provides industry with some confidence when they move forward with targeted research and product development, meaning that industry development occurs and jobs are created.
Active strategies are the key and a recent example is Norway and their
Obvious opportunity areas for New Zealand are the development
In fact, around half of the total energy used is provided by oil to support transport, which brings the actual contribution from renewables down to a percentage somewhere in the 40’s. We regularly boast that 74% of our electricity comes from renewables but when we look at what that means when we take out hydro; the figures are not very impressive. In fact, as Blair Walter pointed out, our use of wind
If we look at countries with a similar population size to ours, such as Scotland, they have a 100% renewable electricity goal by 2020 and are on track for 50% by 2015.
of geothermal and waste heat technologies as already being developed through the Above Ground Geothermal and Allied Technology (AGGAT) programme run by industry through HERA, and the energy opportunities presented by our tremendous wave and tidal energy resources. As Blair Walter says, “There is no reason we can’t be 100% renewable,” and if that means more opportunities for New Zealand companies’ like Aurecon and for industry development, all the better, it just needs some strategies to achieve goals; actions and not just words.
Local steel industry tackles imports head on continued from Page 1 The initial group of steel fabricators certified under the SFC scheme are: • Chapman Engineering, Christchurch • D&H Steel Construction, Auckland • Eastbridge, Napier • Jensen Steel Fabricators, Mt Maunganui • John Jones Steel, Christchurch • MJH Engineering, Lower Hutt • Red Steel, Napier • Whakatiki Engineering, Upper Hutt
To find out more about the Steel Fabricator Certification scheme visit www.steelfabcert.co.nz.
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NZ Manufacturer October 2014
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