NZ Manufacturer October 2023 by Media Hawkes Bay Limited

October 2023

Listen to uniquely Kiwi stories contributing to New Zealand’s future

www.nzmanufacturer.co.nz BUSINESS NEWS 7First Advanced

8 BUSINESS NEWS

Manufacturing Aotearoa CEO announced.

Improve your do!

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14 SMART MANUFACTURING Plan for investing in STEM long overdue.

Carbon emissions on the way down Robert McLachlan, Professor in Applied Mathematics, Massey University.

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Ian Mason, Adjunct Senior Fellow in Renewable Energy Systems Engineering, University of Canterbury.

It may have been largely overlooked in the election debates, but New Zealand’s greenhouse gas emissions are finally on the way down. Annual emissions of carbon dioxide from the burning of fossil fuels are the lowest since 1999 and the 12-month renewable share of electricity is back above 90% for the first time since 1981. The Ministry for the Environment has advised New Zealand is on track to meet the first (2022-2025) carbon budget.

emissions. The installation of an electric furnace at NZ Steel to utilise scrap will save 1% (800,000 tonnes of CO₂-equivalent emissions, or tCO₂e) of New Zealand’s 2021 gross emissions. Support for Fonterra to convert coal-fired boilers at six plants to renewables will save 1.4% (1.1 MtCO₂e).

All this can be attributed to a range of factors, including fossil gas running low, full hydro lakes, high petrol prices and working from home. But climate policies such as the Emissions Trading Scheme (NZ ETS), the clean car discount and the Climate Emergency Response Fund (CERF) have made a significant contribution to the turnaround.

The Act Party pledged to disestablish this fund.

Current decarbonisation policies have and will continue to deliver real emissions cuts, provided they remain in place. It is therefore disconcerting that the National Party plans to take $2.3 billion from the CERF (almost two-thirds of the fund’s mid-2022 balance) to pay for tax cuts. The argument that individual households will use tax cuts to make their own decarbonisation decisions is unsupported by evidence and lacks credibility.

The State Sector Decarbonisation Fund, valued at $215 million and used to reduce emissions in government organisations including hospitals and universities, is on track to deliver emissions savings of nearly a million tonnes over ten years (0.1% per year). Since the introduction of the clean car discount in July 2021, sales of electric vehicles have quintupled and now have a 12% market share. The market share of all low-emission vehicles rose from 20% to 60%, easily surpassing emissions targets of the clean car standard which came into force this year.

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The Labour Party has also dipped into this fund, taking $236 million to pay for rebates for household installations of solar panels and batteries, and community energy schemes. These may produce some as yet unquantified emissions cuts.

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Government funding is working Allocations from the Government Investment in Decarbonising Industry (GIDI) fund to NZ Steel and Fonterra show direct and measurable avoidance of

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Since the introduction of the clean car discount in July 2021, sales of low-emission vehicles rose significantly. Data from Waka Kotahi, CC BY-SA

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Media Kit

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edica D + ion t a v o n In ccess u S = For a copy of the NZ Manufacturer Media Kit 2023 email publisher@xtra.co.nz

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Asia’s manufacturing future.

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C0NTENTS

ADVISORS

DEPARTMENTS 1 LEAD

Kirk Hope

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

Carbon emissions on the way down.

6 BUSINESS NEWS

Importance of technology in NZ’s future. First AMA CEO announced.

Improve your do!

9 SMART MANUFACTURING Prospr reduces reliance on labour.

AI security system released. New charger supports expanding EV infrastructure.

Ian Walsh

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

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

Plan for investing in STEM “long overdue”. Integrated ERP for greater productivity.

16 COMMENT Choose applications relevant to your needs. 2023 KiwiNet Awards Winners announced.

17 ROBOTICS

How to get robotics right.

18 AI Artificial Intelligence in industry: intelligent production. Six barriers to AI adaption in manufacturing.

20 SUSTAINABILITY Serious about reducing your carbon footprint? (Part Two)

21 COMMENT

Win/Loss ratios to keep your laser cutting job shop competitive

Full turnkey laser cutting solutions.

24 DEVELOPMENTS Government invests in tiny tech with global potential. Engineering consultants celebrated at ACE Awards Gala Wellington students get work-ready at Outward Bound.

27 THE LAST WORD

The global chip industry’s complicated contours decades in the making.

NZ Manufacturer October 2023 /

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Brett O’Riley

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

Insa Errey

22 WORKSHOP TOOLS CKS2-One key, many functions.

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.

Insa’s career has been in the public and private sectors, leading change management within the energy, decarbonisation, and sustainability space. Insa holds a Chemical and Biomolecular BE (Hons) from Sydney University. She is a member of the Bioenergy Association of NZ and has a strong passion for humanitarian engineering, working with the likes of Engineers Without Boarders Australia. Insa is a member of Carbon and Energy Professionals NZ, been an ambassador for Engineering NZ's Wonder Project igniting STEM in Kiwi kids and Engineers Australia Women in Engineering, increasing female participation in engineering.

EDITORIAL

Carbon emissions down Media Hawke’s Bay Ltd, 121 Russell Street North, Hastings, New Zealand 4122.

New Zealand’s carbon emissions are on the way down.

MANAGING EDITOR

since 1999 and the renewable share of electricity is

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

Annual emissions of carbon dioxide are the lowest back above 90% for the first time since 1981. The Ministry for the Environment has advised New Zealand is on track to meet

CONTRIBUTORS Holly Green, EMA, Business East Tamaki, Ian Walsh, Dr. Barbara Nebel, Adam Sharman, Andrew Mamonitis, Bruce Thomas

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the first (2022-2025) carbon budget. Elsewhere in this issue we are happy to report that Catherine Lye has been appointed the first Chief Executive Officer of the newly formed cross-sector incorporated society, Advanced Manufacturing Aotearoa (AMA). (Page 7). Ian Walsh suggests businesses put in place more effective actions and, ultimately, better outcomes. (Page 8). Engineering New Zealand President, Glen Cornelius, says a “serious conversation and commitment with Government” about the country’s approach to developing skills in science, technology, education, and maths

DESIGN & PRODUCTION :kim-jean: E: kim.alves@xtra.co.nz

(STEM) is “long overdue” (Page 14). Adam Sharman, dsifer, says to choose applications relevant to your needs carefully. Advances in functionality, connectivity and speed to deployment

WEB MASTER Julian Goodbehere E: julian@isystems.co.nz

have resulted in the ability to pick and choose applications that are relevant to the specific requirements of an organisation’s industry (Page 16). The 2023 KiwiNet Awards winners have been announced, representing the

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best of the research innovation ecosystem (Page 16). How complicated is the global chip industry? Find out on Page 27. If you are interested in electric vehicles, read how China’s BYD has become Tesla’s greatest threat. There is an article covering this on The Wall Street Journal, 4 October.

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MEDIA HAWKES BAY LTD T: +64 6 870 9029 E: publisher@xtra.co.nz 121 Russell Street North, Hastings NZ Manufacturer ISSN 1179-4992

Vol.14 No.9 October 2023

So here we are, with a new government, financial shape and form to be

Success Through Innovation

PUBLISHER

determined. Business keeps on keeping on and needs real change for success. It is important that National and its partners ensure the tools are there to assist with Productivity and manufacturing, carbon emissions reduction, keeping the trade deals coming and settling on tax rates to help businesses get ahead, especially with technology investment. To overcome our mountain of debt will not be easy. We will not be in the black

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

in a couple of years; Real effort on a realigned path will however go a long way to making a difference. Working together with a shared aim should not be overlooked.

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NZ Manufacturer October 2023

BUSINESS NEWS

Importance of technology to NZ’s future The next Government must support the use of technology to transform the economy, lift the performance of New Zealand industries and create high-value jobs, according to NZTech CEO Graeme Muller. NZTech has released its manifesto for the upcoming election, New Zealand’s Digital Future, which cites six key areas the next Government must focus on to enable and grow Aotearoa as a Digital Nation: education, inclusion, sustainability, safety, growing exports, and lifting productivity.

Highlights include: • Developing a national Digital Skills Strategy to coordinate public and private sector initiatives to lift digital skills • Providing affordable internet access to all New Zealanders, including free internet access in all public housing • Developing a climate technology roadmap for New Zealand’s Emissions Reduction Plan • Enabling biotechnology investment through modifying New Zealand’s genetic modification laws • Increasing investment in critical cyber security infrastructure and education for New Zealand businesses and the public NZTech represent 20 tech associations with over 2,000 members who collectively employ more than 100,000

New Zealanders. The organisation is a lead partner in the Digital Technology Industry Transformation Plan (ITP), a collaboration between the New Zealand tech sector and the New Zealand Government, to help grow the country’s second-largest export sector, responsible for almost $10 billion in exports. As in past elections, NZTech continues to advocate for a Minister of Technology to be part of the next Government, a move which the National Party has included in its tech policy. Technology impacts the entire economy and it needs a strong voice inside Government, says Muller. “Tech’s influence is so significant it urgently requires dedicated Government leadership and oversight. This role should address a wide range of issues that collectively improves digital safety, and lifts equity, sustainability and prosperity for all in Aotearoa, by creating jobs, export growth and impact through tech for good. “The introduction of this level of focus should help with cross sector coordination to take advantage of tech where possible and be better prepared to manage any emerging tech risk, such as the role technology should be playing in our emissions reduction commitments.” NZTech’s recent Digital Skills for Tomorrow, Today report identified the continuing challenges organisations across the economy are facing accessing the digital skills they need to grow or provide better services for New Zealanders.

“While work is underway to improve the development of local talent, immigration will continue to be critical to ensure we have the skills in New Zealand to take advantage of quickly evolving technologies like AI and cybersecurity,” says Muller. In 2022 there were 23,433 tech firms in New Zealand who employed 118,070 people in New Zealand and thousands around the world. The top 200 exporting tech firms workforce grew 10.9% per annum and the average salary of people working in the tech sector is over $100,000. The tech sector is New Zealand’s second largest export sector, and exported $9.8 billion in 2022, while contributing $20 billion to GDP. View the latest tech metrics here. Learn more about NZTech and its work.

Tech’s influence is so significant it urgently requires dedicated Government leadership and oversight.

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

businessET.org.nz

BUSINESS NEWS

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

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

Sean O’Sullivan Has a B Com (Hons) Otago University. In 2000 - 2001 introduced PCs on the workshop floor and job and staff tracking and a productivity software App to Fletcher Aluminium Group and 100 manufacturers NZ nationwide. In 2001 – 2022 Founding Director Empower Workshop Productivity & Scheduling Software App. 236 manufacturing and engineering clients mainly throughout NZ and Australia, also UK and US.

First Advanced Manufacturing Aotearoa Chief Executive Officer announced Catherine Lye is the first Chief Executive Officer of the newly formed cross-sector incorporated society, Advanced Manufacturing Aotearoa (AMA). The AMA is industry driven and represents manufacturing across the country to help deliver business-led Advanced Manufacturing Industry Transformation Plan (ITP) outcomes. Catherine has been the Head of Manufacturing and Export Communities at the 7,100-member Employers and Manufacturers Association for the past two years. As part of that she has guided the Advanced Manufacturing and Industry 4.0 initiatives. Following a Bachelor of Commerce degree in Marketing and Finance, Catherine held numerous marketing and export-focused roles in local and international companies, rising to Chief Impact Officer for ExportNZ. AMA Interim Chairperson, Daryl French, says there were a number of high-calibre applicants generated from external advertising, but that Catherine quickly emerged as the best person for the role. “She has such a deep knowledge of the Advanced Manufacturing Industry Transformation Plan and understanding of the issues faced by the sector, as well as a practical understanding of advanced manufacturing technologies,” he says. “One of the keys to the success of this role is building and nurturing relationships with Government agencies, industry partners, research institutions and businesses to engage, influence and inspire them to collaborate for the best outcomes for the sector, and I have absolute confidence that she will deliver to that.” Catherine will work alongside the interim AMA Board, which includes: • Daryl French, Interim Chairperson, and independent Director of four manufacturing companies. • Rod De Spong, Chief Operating Officer, Douglas Pharmaceuticals

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

• Phill Patton, Senior Executive, Datacom • Rachel Barker, Chief Executive Officer, Plastics NZ • Glenn Hansen, Group Financial Controller, Vortex Engineering Group. *Advanced Manufacturing Aotearoa (AMA) is the umbrella organisation leveraging business networks to implement ITP priorities. It takes an industry-led, collaborative approach to helping deliver initiatives that make a difference. To become a member of the AMA, which is free, please email info@amanz.nz. Benefits include: Industry news and information,Regionally organised site visits for targeted stakeholders, Roadshows organised by the Council, Board and other initiatives, Problem solving sessions, Opportunities to provide input and feedback on manufacturing-related matters, Networking opportunities. -

BUSINESS NEWS

Improve your do! Review your processes to add value -Ian Walsh, Partner, Argon & Co NZ

All businesses deliver products and services according to their business processes. In the same way the central nervous system transmits instructions from the brain to various parts of the body, business processes provide the mechanism that turns objectives into action. So more effective processes make for more effective actions and, ultimately, better outcomes. The first step to improved processes is a clear and comprehensive understanding of the existing state of affairs.

Do you know how well your current business processes perform? I recently asked a group of business owners what kind of service their help lines delivered. Out of the 30 that I asked, only one could tell me. None of the others had thought to pick up the phone to get an insight into their customers’ experience. A process map is the first step towards understanding how a process is performing – and how it might perform better. A process map provides a physical representation of the individual steps within a particular process, identifies who has ownership of each step, and may even incorporate timelines and other information. The act of creating a process map will itself likely highlight areas where resources are being wasted. We recently mapped a client’s enrolment process and discovered that it was possible for students to enrol in a course and graduate before fees were collected. It was no surprise that four staff were involved in chasing bad debtors! This waste of resources at the end of the workflow chain was a direct result of poor practices earlier in the process.

Eight well known and well documented wastes

Process mapping helps the whole team to understand the process better and empowers them to call out the waste within it. Often, the people carrying out the process know where the inefficiencies are. Having identified the issues, the next task is to categorise them and prioritise the most urgent. Then to identify the solution. Engaging the whole team and mapping the entire process is also a great way to ensure the knowledge that has accumulated inside the heads of your staff is made available to all – now, but also well into the future, when the original source of that information has long since left the building. Sounds simple – and at heart it is. But like any business process, the process of identifying strategic objectives, of analysing and understanding current practices and identifying their shortcomings, of engaging the whole workforce in developing and implementing solutions is a specialist skill; one few business leaders have the experience and skill to apply. It can also be difficult for a business leader to admit that a process is no longer fit for purpose. This is where an objective advisor can really add value. With no need to defend their position in the organisation, and no allegiance to “the way we’ve always done things”, a process improvement specialist can help a business and its people harness their own experience to create lasting solutions. Want to explore this further? Give me a call. There are some good practitioners around and funding models available to help businesses down this road.

NZ Manufacturer October 2023 /

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S M A RT M A N U FA C T U R I N G

Prospr: multi-use autonomous vehicle for sustainable orchard and vineyard production New Zealand-based agritech company Robotics Plus has launched Prospr, an autonomous, multi-use, hybrid vehicle designed to carry out a variety of orchard and vineyard crop tasks more efficiently and sustainably while reducing reliance on labour. Prospr is now commercially available from Robotics Plus, a specialist in the design and build of innovative agricultural robotics. Prospr accommodates multiple swappable tools being developed, including newly released tower sprayers for grapes, apples, or tree crops. The right tool for the job is attached to the vehicle depending on the day’s work, and multiple Prosprs can collaborate in a fleet to get the job done. The autonomous vehicle uses a combination of perception systems to sense the environment, enabling data-driven insights. Robotics Plus showcased Prospr for the first time at FIRA 2023, a California-based event dedicated to autonomous agriculture and agricultural robotics solutions. Steve Saunders, Co-founder and Chief Executive at Robotics Plus says the agriculture industry faces unprecedented challenges as this generation works to produce more food sustainably while reducing emissions and supplying at a lower cost. “Prospr is a robust autonomous vehicle, with all-day running, that adapts to the jobs growers need to do while reducing emissions, inputs and reliance on increasingly hard-to-find machine operators. We’ve focussed on utilisation and flexibility with a unique modular architecture, allowing different tools for various crop types and applications year-round to maximise return on investment. “It’s great to be back at FIRA to launch Prospr, with the first vehicles rolling out to customers this month. It’s a fantastic milestone for the passionate and dedicated Robotics Plus team.” Dr. Alistair Scarfe, Co-founder and Chief Engineering Officer at Robotics Plus, says, “We’ve made multiple technology advances for Prospr, including a remodelled platform for tools, new spraying attachments, and a new user interface to aid management and planning. We’ve also improved machine connectivity, control, safety and localisation. Prospr has its own wireless network, keeping vehicles online and enabling software updates for new features. We’re really proud to release another world-leading robotic innovation to market, thanks to the expertise of our outstanding team and partners.”

Hybrid System Prospr has an all-electric drive system for superior torque and control. Its onboard power generation, with a Tier 4 diesel generator, allows the vehicle to operate for extended periods without charging or refuelling.

growers to deploy a range of spray configurations, adapting to various crop types, growing formats, heights, and the day’s job. The Q4 / Q6 sprayers have two or three fans on either side and are best suited to grape, apple, or tree crops.

Regenerative braking and high-capacity batteries extend range whilst its intelligent all-wheel-drive system with independent wheel motors gives superior manoeuvrability, grip and control.

The Q8 sprayer comprises eight fans, four on each side, and is best suited to apple crops. Spray rates and air speed are dynamic and controlled per fan to maximise spray efficacy through electric drive and control systems.

Dr. Scarfe adds, “We’ve put our hybrid power and drive system through its paces and can achieve over 70% reduction in fuel consumption when compared to traditional diesel tractors doing the same job.”

The sprayers are built upon Croplands Quantum fans that produce a fine mist and turbulent air for better coverage from the superior droplet formation and spray deposition.

Modular and adaptable

Safety and Management

Prospr has a small footprint and unique steering configuration, incorporating electric steering and independent motors. The vehicle turns on its rear axle with a minimum headland requirement of 7.1m/23ft for row-to-row turning.

To implement Prospr, a mesh network is installed to give a more consistent connection and interaction with the machine, improving operational efficiencies and user safety. Operators can manage and streamline the day’s work with a new organizational tool with an easy-to-use interface. Coordination is enabled between team members with multi-language support across various desktop and mobile devices.

Minimum row spacing is 1.85m/6.07ft, giving growers options to deploy automation in a greater variety of applications in various crop types. This means ground is covered faster, maximising productivity and spray time compared to machines that turn on every second row or greater. The vehicle’s lightweight design, combined with its unique tire and wheel configuration, reduces ground compaction.

Jobs can be logged in advance and viewed in real time. Completed or in-progress jobs are mapped and recorded digitally. Multiple machines can be managed simultaneously by one or two operators from a single remote control via a fixed or mobile console.

Steve Saunders says, “We’ve delivered a highly adaptable modular vehicle and are partnering with industry leaders to deliver various technologies for our tools. The first of these partnerships is with Croplands, a leader in sprayer technology. Our ongoing partnership with Yamaha Motor Co is helping us refine and productize our vehicle for scale. This significantly increases the robustness and support for Propsr in demanding and ever-changing agricultural environments.”

Q Series Sprayers Q Series Sprayers, developed by Robotics Plus in conjunction with Croplands, allow

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NZ Manufacturer October 2023

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

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

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

IS HERE

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

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

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

“

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

Mitchell Sanson, Engineering Manager, Hansa Products

Featuring

“

MANUFACTURING

THE FUTURE OF

What is Industry 4.0? Industry 4.0 is our fourth industrial revolution, driven by converging digital technologies including the Internet of Things (IoT), robotics, AI, augmented and virtual reality, and 3D printing. With Industry 4.0 technologies, manufacturers can enhance performance, monitoring, quality and control on a global scale.

THE INDUSTRY 4.0 PROGRAMME Join us for events, apply for a readiness assessment to see how you compare to others in your sector or simply expand your knowledge through the resources and case studies.

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

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

SMART FACTORY SHOWCASES Hawkes Bay 13th October 9:30AM - 12:30PM

Northland 19th October 9:30AM - 12:30PM

Auckland 31st October 7:30AM - 10:30PM

Christchurch 1st November 9:00AM - 12:00PM

FOOD, BEVERAGE & PACKAGING SPECIAL Auckland 17th October 7:30PM - 10:30PM

View all Showcases

FACTORY TOURS Auckland Douglas Pharmaceuticals 18th October 10:00AM - 12:30PM

Christchurch Argus Manutech 19th October 10:00AM - 12:30PM

WEBINAR POWERED BY

PROGRAMME PARTNERS

Online Independent Doors 12th October 11:00AM - 12:00PM

S M A RT M A N U FA C T U R I N G

Industrial edge platform for smarter software-defined factories Red Hat has a new industrial edge platform, designed in collaboration with Intel, to provide a modern approach to building and operating industrial controls. By transforming the way manufacturers operate, scale and innovate with standard IT technologies delivered to the plant floor and real-time data insights, the platform will enable industrial control system (ICS) vendors, system integrators (SIs) and manufacturers to automate previously manual industrial automation tasks. These include: system development, deployment and management, cybersecurity risk reduction, prescriptive and predictive maintenance improvements for factory agility, co-locating deterministic and non-deterministic workloads and reducing turnaround time. Smart factories, or software-defined factories, are playing a crucial role in amplifying the speed at which manufacturers can innovate. By breaking down the barriers between IT and OT, manufacturers can embrace collaboration with new functionality and proactively strengthen and speed up operations, with the flexibility and intelligence to scale based on demand. The industrial edge platform is intended to provide a holistic solution that spans from real-time shop floor control and artificial intelligence/machine learning (AI/ML) to full IT manageability - delivering greater customer choice for data gravity or edge-to-cloud

style architectures and improved overall equipment efficiency (OEE). To continuously support this effort, Red Hat and Intel are working to integrate Intel-based platforms and Intel Edge Controls for Industrial (Intel ECI) with current and future versions of Red Hat Enterprise Linux, starting with collaboration in upstream Linux communities like the Fedora Project and CentOS Stream. This collaboration extends to bringing these controls and platforms to Red Hat Device Edge (early access), Red Hat Ansible Automation Platform and Red Hat OpenShift. With this collaboration organisations can benefit from: • Fully integrated real-time capabilities from silicon to software, to support industrial automation for predictable performance; • Advanced management and network automation for system deployment and management without heavy handed resource usage, simplifying the industrial network creation and management using open standards-based tools; • Scalability and flexibility through a software-defined platform approach that facilitates more portable, scalable control and maximises adaptability; • Uninterrupted high-availability

operations supported by and redundancy attributes

built-in with the platform; • Simplified AI workload integration with the ability to take an AI workload and run it next to a control workload, helping simplify hardware complexity, and enabling AI to more easily improve product quality, system uptime, maintenance needs and more; • Enhanced cybersecurity posture by removing human error elements with automated patching and updates, an immutable operating system plane and a platform built on hardened, production-tested components. To underpin this platform, Red Hat - in collaboration with Intel - will deliver a real-time kernel that provides lower latency and reduced jitter, helping applications run repeatedly with greater reliability.

Software-defined factories in action Manufacturing innovation has been hampered by the limitations of legacy industrial controls and siloed organisational structures for decades. With this new platform, organisations will be able to benefit from an open edge platform that allows simplified integration of components in an easy-to-use, reliable solution for industrial automation. Industry leaders like ABB and Schneider Electric and Codesys are already working to successfully implement new industrial edge platforms to build modern industrial controls.

AI security system for retailers Pukekohe business owner, Joshua Parsons, founder of Crosbies Security, has introduced an AI security system for retailers, Watchful. Watchful uses artificial intelligence to detect prospective offenders before any crime occurs and connects to the backend of existing CCTV as well as other crime prevention methods such as fog cannons. “What you program the camera to look out for can be totally personalized, including the area and timeframe that’s being covered,” Parsons said. The AI monitoring system determines if the business’s specified requirements are met, such as cars driving onto the pavement or a person approaching the store at night.

– while we hope the system will prevent the crime from happening in the first place, we’re also able to speed up police’s response by feeding them information as it’s happening.” Information about what the offender is wearing, which direction they came from and whether they’re travelling in a vehicle can all be passed to police “within seconds”, Parsons said. The Watchful Camera Monitoring Platform was nominated for Outstanding New Product or Service of the Year at the 2023 Security Awards. Crosbies Security has already received accolades including Outstanding New Product or Service of the

The security system includes four parts cameras, lights, sirens and an external monitoring operator and can connect to the backend of existing CCTV.

Year at the 2022 and Excellence in Innovation at the Pukekohe Business Excellence Awards 2023. Joshua Parsons recently launched retail technology after seeing the success of his security systems in the construction sector. He originally founded Crosbies Security in Pukekohe in 2018 with mobile solar-security tower technology for construction sites. In response to the trend in burglaries in the civil and construction sector, Crosbies Security designed monitoring technology that monitors and deters potential crimes and reports safety compliance. They monitor over 700 cameras daily, reporting and preventing crimes from occurring in real time. “What we’ve noticed is the type of crime has really changed since then, and more and more criminals are targeting retail stores,” Parsons said. Stirling Sports Pukekohe is the first retail store to trial Watchful after the two business owners met through the Pukekohe Business Association.

When the system is triggered by AI, the lights and sirens are activated, and the footage is sent to the external monitoring operator on duty who feeds this information to the police immediately. “The aim here is two-fold

Stirling Sports Pukekohe owners volunteered to trial the AI system after facing a sixth attempted ramraid over 8 years of ownership. Watchful Founder, Joshua Parsons Awarded Excellence in Innovation at the Pukekohe Business Excellence Awards.

12 NZ Manufacturer October 2023 /

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S M A RT M A N U FA C T U R I N G

New charger supports expanding EV infrastructure Hospitals, train stations, retail stores, industrial buildings, multi-unit residential buildings and more have access to a new reliable charging solution for New Zealand EV drivers The new EVlink Pro AC from Schneider Electric is promising to support the growing demand for electric vehicles and charging infrastructure amid increasing business and consumer transition to EVs. From hospitals to retail stores and multi-unit dwellings, the new charging station has been designed specifically for sustainable and efficient buildings of the future. It is an advanced solution for electricians and other specialists that meets the world-leading compliance standards set by the IEC (International Electrotechnical Commission) in Europe. The new charging station supports optimised energy consumption, maximised uptime and efficiency, and helps ensure a seamless user experience for EV installers, operators, and drivers. It has an enhanced degree of repairability with easily accessible spare parts that make the unit more serviceable.

range responds to rising EV ownership in New Zealand, as buyers have reacted to incentives and new infrastructure options, and are demanding more access to public chargers: the EECA survey found owners want more options, with the most convenient locations identified as supermarkets (63%) and shopping malls (55%), and the most appealing option is to have ultrafast chargers on popular travel routes. The EVlink Pro AC also provides design flexibility for builders and contractors. The scalable, modular design with TS2 socket (or attached 5m cable) includes wall-mounted or floor-standing options, giving it a customisable look and feel for different installation needs.

this new technology, having recently installed four EVlink Pro AC chargers at their Christchurch office. Schneider Electric has expanded its eMobility team to support the growing demand for EVs in New Zealand. EVlink Pro AC is compatible with Schneider Electric’s EcoStruxure EV Charging Expert, which monitors, controls, and maximises EV charging based on the available power. More broadly, the EcoStruxure platform enables businesses to connect their entire digital ecosystem in one space. This allows for the collection and analysis of critical data in real-time so that businesses can better understand, manage and reduce their energy consumption.

Fonterra New Zealand is one of the first to install

Charging for an hour on the EVlink Pro AC can give up to 120 kilometres of driving range, depending on the vehicle, and a completely flat battery could be charged in around six to eight hours to get to an optimal almost full charge – ideal for people who will charge at their workplace or dwelling. The station includes a modem as an optional accessory. The EVlink Pro AC charger helps to offset on publicly available EV infrastructure as the transition accelerates in line with the resolution of a backlog of previous orders and the resumption of the full petrol tax. At present, according to the EECA’s 2023 survey of BEV (battery EV) and PHEV (plug-in hybrid EV) owners, 97% of EV owners are charging at home at least some of the time, and the majority are charging off-peak, with 69% having access to off-peak pricing plans; 54% of home charging starts between 9pm and 11pm, and 38% of charging stops at 7am. Public chargers are being used primarily for long-distance travel, with 75% of EV owners using them on long weekend and holiday trips. Schneider Electric’s investment in developing the new charger as the latest addition to its EVlink

Visualisation for Visionaries Design, test, and deploy applications directly from a web browser

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NZ Manufacturer October 2023

NZ MANUFACTURER

FEATURES NOVEMBER 2023 Issue

PRODUCTIVITY – THE STEP UP INDUSTRY 4.0

Advertising Copy Deadline – 6 November 2023 Editorial Copy Deadline – 6 November 2023

Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz Tel: 06 870 9029

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

As I See It

Manufacturing Profiles

Business News

Letters to the Editor

Appointments

Politics of Manufacturing

Around New Zealand Australian Report New to the Market Lean Manufacturing

Export News

Equipment for Sale

Machine Tools

Recruitment

Business Opportunities

Environmental Technology

Commentary

Manufacturing Processes

14 NZ Manufacturer October 2023 /

security and resilience in the face of climate change, or opportunities through innovation and trade,” he says. Although Cornelius accepts tertiary institutions are facing financial pressure and many are making “tough choices” about which programmes are sustainable, he sees Massey University’s proposals as evidence of a larger issue about the place of STEM in education and the workforce. “As President of Engineering New Zealand, I want to see our country grow STEM opportunities for our many intelligent and curious young minds,” says Cornelius. “But these proposals send the wrong message. They suggest a future in STEM isn’t valued – all of which comes at a time when there is a global demand for engineers. “The need for graduate pathways in science, technology, engineering and maths has never been greater – and that’s a message we’ll be taking to the next Government,” he says.

Technology has heavily influenced the modern manufacturing industry and created a business environment that evolves with unprecedented speed.

Editorial material to be sent to :

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“There are huge opportunities for today’s engineering students when considering food

Gen Cornelius.

Integrated ERP helps manufacturers achieve greater productivity

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

Q/A

Cornelius was responding to recent proposals from Massey University to cease delivering its four-year Bachelor of Engineering (Honours) and Bachelor of Food Technology (Food Process Engineering) degrees – proposals he describes as “a real blow.”

“We know 2,500 new engineers are needed each year to support New Zealand’s economy, and that’s before finding engineers to replace those who move overseas or retire.

Advertising Booking Deadline – 6 November 2023

World Market Report

Engineering New Zealand President Glen Cornelius says a “serious conversation and commitment with Government” about the country’s approach to developing skills in science, technology, education and maths (STEM) is “long overdue”.

Chief Executive Dr Richard Templer agrees, saying engineering is “critically important” to New Zealand’s future as the country looks to grow productivity and incomes.

WORKSHOP TOOLS

Diary of Events

Plan for investing in STEM “long overdue”

“Any proposal to reduce educational opportunities for young people to train in engineering and STEM subjects gives us cause for concern,” he says.

BIG DATA

Trade Fair World

S M A RT M A N U FA C T U R I N G

From human-centered methods to highly automated factories, manufacturers must continuously navigate complex operational demands, customer requirements, and growth challenges. Amid all of this, flexibility and efficiency continue to be the two essential factors to business success. And, as manufacturers enter Industry 5.0, they increasingly move towards integrated enterprise resource planning (ERP) systems to stay competitive and achieve greater productivity. Manufacturing is complex; it involves various business functions like customer service, project management as well as inventory and cost control. Efficiency and accuracy across these functions are critical for short production cycles, minimal costs, timely product delivery, and excellent customer service.

estimation accuracy, which is critical for both customers and manufacturers. These systems help minimise errors by providing single data entry and letting information, such as quotes, move seamlessly through the entire process. This method reduces mistakes, streamlines operations, and contributes to flawless product delivery. With ERP, businesses can quantify costs accurately, track variations, and give accountants complete visibility of cost performance for better decision-making.” Beyond this, integrated ERP systems also provide a single source of truth, improving interdepartmental communication. Once data is entered, it’s immediately available to all relevant business functions, reducing duplication and improving data accuracy.

However, managing disparate software systems for multiple business tasks is no longer viable. In this context, adopting an integrated ERP system can make a huge difference. Andrew Mamonitis, vice president APAC, ECI Solutions, said, “An integrated ERP system can significantly improve cost

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It also enhances operational efficiency as real-time data is available across a project’s life cycle, ensuring timely access to crucial information. A centralised database for storing important documents and spreadsheets eliminates duplication and enhances data accuracy. This approach significantly streamlines operations and prevents time

Andrew Mamonitis.

continued on Page 22

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NZ Manufacturer October 2023

COMMENT

Choose applications relevant to your needs -Adam Sharman, Senior Partner, dsifer

As organisations look to embrace the benefits of digitisation through automation, IoT and AI, a trend is emerging that embraces the growing availability, specificity and cost effectiveness of a plug-and-play approach to developing an IT and data architecture. Advances in functionality, connectivity and speed to deployment have resulted in the ability to pick and choose applications that are relevant to the specific requirements of the organisation’s industry, operations and environment at a time when the vast majority of IT professionals report significant time waste due to bloated, generic applications.

organisations to establish comprehensive data governance policies. It allows for centralised control over data access, usage, and security. By breaking down data silos and implementing clear governance frameworks, organisations can ensure data is accurate, reliable, and compliant with industry regulations.

permissions, and audit trails, making it easier to meet regulatory requirements. Additionally, it enhances data security by reducing the attack surface and allowing organisations to implement robust security measures.

Whilst this trend towards a plug-and-play system architecture has multiple benefits, it requires careful consideration of the underpinning data architecture to ensure that, not only are data privacy and sovereignty maintained but that the data generated by the plug-and-play ecosystem is collected and utilised as a performance and strategic asset.

Improved Data Quality and Consistency

Cost reduction

In our interactions with manufacturing businesses in New Zealand and the UK, we are seeing the importance of establishing an independent, centralised data architecture as an enterprise asset to support the plug-and-play IT architecture, receiving data feeds from the operational systems, and using a combination of these source datasets to create meaningful and actionable insights. There is still much debate on the relative benefits of physical centralisation (data lakehouse) versus a virtually centralised (data mesh). In our experience, both have their place depending on the organisation’s context. However, the key characteristic of the data architecture that supports a plug-and-play IT approach are that the data assets, architecture and governance are independent of the IT applications, data siloes are removed to support integrated enterprise insight and access points are decoupled to accelerate collaboration whilst maintaining data integrity. Organisations who have adopted this approach report multiple benefits, including:

Enhanced Data Governance and Control Independent

data

architecture

empowers

Separating data from specific applications reduces the risk of data inconsistencies and errors. With an independent data architecture, organisations can implement data quality checks, data cleansing processes, and data lineage tracking to maintain high-quality data. This, in turn, leads to more reliable insights and better decision-making.

Agility and Scalability An independent data architecture provides the agility needed to adapt to rapidly changing business needs and technological advancements. Organisations can easily integrate new data sources, scale their infrastructure, and experiment with different analytics tools without disrupting their core data ecosystem.

Vendor Independence Relying on a single vendor or proprietary data system can lead to vendor lock-in and limited flexibility. Independent data architecture mitigates this risk by allowing organisations to select best-of-breed solutions for each aspect of their data pipeline. This approach provides vendor independence, ensuring that the organisation is not bound to a single provider’s roadmap or pricing structure.

Compliance and Security Maintaining compliance with data privacy regulations (such as GDPR, CCPA, or HIPAA) is a growing concern for organisations. Independent data architecture enables better control over sensitive data, access

An independent data architecture can lead to cost savings in various ways. By choosing the most cost-effective solutions for each data management component, organisations can reduce infrastructure and software costs. Moreover, improved data quality and governance reduce the costs associated with data errors and compliance violations.

A data ecosystem that enables fast learning By creating a data layer that is fed directly from each operational system it is possible to link datasets that previously are difficult to combine e.g. Payroll data linked with production data. This creates a “nerve centre” of the digitised operations of manufacturing activity and affords the ability to really understand the interrelationships between supply chain, inventory control, demand forecasting, production planning, shop floor production, back end support, and personnel management. Visibility to these real data points makes it possible to implement initiatives with pinpoint precision, while also allowing the ability to assess the effectiveness of each initiative. This is truly the goal of a data ecosystem as it supports the decisioning of every aspect of an innovative manufacturer. Establishing an independent data architecture through either centralised data lakehouse or virtual integrated data mesh is key to optimising a plug-and-play IT ecosystem, maintaining enterprise data sovereignty and supporting the strategic, operational and commercial value of data as a

2023 KiwiNet Awards winners: Turning science discoveries into transformative new technologies for the world Winners of the 11th annual KiwiNet Research Commercialisation Awards were celebrated at a gala event in Auckland late in September for their success in transforming research into impactful innovations for the world. Winners, chosen from the passionate people and teams commercialising scientific discoveries within New Zealand’s universities, Crown Research Institutes and other research organisations, represent the best of the research innovation ecosystem. KiwiNet’s Commercialisation Icon was also honoured. Winners included innovations for reusable framing for sustainable construction and hydrogen production tech, and innovators transforming Aotearoa New Zealand’s clean tech economy, simplifying the manufacture of important biologic pharmaceuticals, and developing natural menstrual care products. The 2023 KiwiNet Research Commercialisation

16 NZ Manufacturer October 2023 /

Awards winners are: Momentum Student Entrepreneur

support for deep tech entrepreneurs, start-ups, and the ecosystem

• Monique Lau: Endosoothe / University of Canterbury: Reimaging menstrual care through innovation and community

PwC Breakthrough Project Award

Sprout Breakthrough Innovator Award

MAS Commercialisation Impact Award

• Dr Sean Feast – Precision Chroma / University of Canterbury: Pioneering 3D printed chromatography to transform the separations industry

• XFrame and Wellington UniVentures: Reusable framing for the next generation of sustainable construction

BNZ Researcher Entrepreneur Award

• Duncan Mackintosh, Brandon Capital: An inspirational leader who has helped shape NZ’s research commercialisation ecosystem

• Professor Rod Badcock - Robinson Research Institute - Te Herenga Waka—Victoria University of Wellington: Building an emerging clean tech economy taking New Zealand’s expertise to the world Simpson Griersoå • Kevin Sheehy, MacDiarmid Institute: Effective

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• Bspkl – GNS Science: Activating sustainability through innovative manufacturing

Commercialisation Icon:

The Commercialisation Icon is awarded as KiwiNet’s highest honour to a champion of New Zealand’s research commercialisation community who has made an outstanding impact in the ecosystem and advanced the commercialisation of publicly funded research within New Zealand.

ROBOTICS

How to get robotics right Automation parts supplier EU Automation has published a new guide about industrial robotics implementation and how to avoid the common costly mistakes of automation adoption. The useful guide provides engineers with valuable information about how to introduce automation into manufacturing practices successfully, so they can realise the full potential of robotics and achieve increased productivity, reduced downtime, improved worker safety, and lower operating costs. The guide is an essential read for engineers looking to adopt automation and robotics into their operations. The guide is full of practical hints and tips, and simple steps that engineers can take to make introducing automation easier. For example, the guide details valuable information, best-practice actions and checklists in sections such as project preparation, project implementation, project operation and project maintenance. The guide also outlines common mistakes and pitfalls in adopting automation. Engineers can learn from real-life examples about what to avoid and what can happen when automation adoption doesn’t go to

plan.

optimal efficiency and equipment longevity.

For example, this could include poor product selection, a lack of joined-up thinking between engineering and IT staff or failure to devote enough time for deployment.

Engineers can learn operation management tips and potential maintenance errors. For example, the guide explains the importance of monitoring performance, setting and tracking key performance indicators (KPIs) as well as giving suggestions for KPIs, such as total cycle time, system availability, or production schedule attainment.

Critical information on building the right foundation and establishing targetable objectives and the importance of creating contingencies is highlighted in the guide. Engineers can also gain valuable insight on a range of planning methods available, and the need to perform comprehensive testing and validation. To ensure lasting success, the guide explains that it is vital to consider two areas which are often overlooked: project operation and project maintenance. The guide highlights that spending time to analyse and refine operations can prove valuable, ensuring

Additionally, the guide emphasises the importance and power of partnerships for maximum effect, and the need to find a trusted parts supplier to help keep robotic systems in perfect working order. Global parts suppliers such as EU Automation can provide expert guidance and advice around areas such as predictive maintenance, helping end users to alleviate any potential problems that could cause downtime before they occur. www.euautomation.com

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NZ Manufacturer October 2023

Artificial intelligence in industry: intelligent production Transporters find their way through factory halls on their own, plants optimise their power consumption during live operation, and machines perform quality-control checks – and make the necessary adjustments – while manufacturing is still in progress. Artificial intelligence offers tremendous potential for industry. It’s already making production more efficient, more flexible, and more reliable. Industry is becoming increasingly digitalised, the Digital Enterprise is already a reality. Data is continuously generated, processed, and analysed. The volumes of data in production environments are the basis on which digital representations of entire plants and systems are generated. These digital twins have been used for some time to structure the planning and design of products and machinery – and production operations themselves – and do so more flexibly and more efficiently while manufacturing high-quality, customised products faster and at an affordable price. But what would happen if the machines and processes could gather insights from these high volumes of data by themselves and optimize their processes during live operation? The potential would be enormous. This can already be achieved, step-by-step, using artificial intelligence (AI).

Creating new opportunities AI has been the focus of research for more than 30 years. During this time, major advances have been made in this area of technology: for example, more powerful hardware and software and improved computing power and data transmission.

including language recognition to perform basic tasks, documenting surroundings using cameras, laser beams, or X-rays, and providing virtual personal assistants in logistics. Siemens has solutions in its portfolio around service, as for example predictive maintenance, and other applications for engineering and quality testing. Cloud solutions like Insights Hub (formerly MindSphere) and intelligent applications also provide support for the ongoing process optimisation that improves machine efficiency and availability.

AI and Industry 4.0 Big data and AI give Industry 4.0 a huge boost. Intelligent software solutions can use the high volumes of data generated by a factory to identify trends and patterns that can then be used to make manufacturing processes more efficient and reduce their energy consumption. This is how plants are constantly adapting to new circumstances and undergoing optimisation with no need for operator input. And as the level of networking increases, the AI software can learn to “read between the lines,” which can lead to the discovery of many complex connections in systems that aren’t yet or are no longer evident to the human eye.

Using artificial intelligence creates entirely new opportunities for flexible, efficient production, even when it comes to complex and increasingly customized products in small batch runs.

Intelligent software with sufficiently intelligent analytical technology is already available. But whether data processing is performed using a cloud solution or at the local level (for example, using Edge computing) will depend on the user’s requirements.

The first real applications of artificial intelligence are finding a place in regular industrial activities

Data on an Edge platform is available more quickly and at a higher resolution, whereas a considerable

18 NZ Manufacturer October 2023 /

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amount of computing power is available in the cloud. In many cases combining edge and cloud computing is required to benefit from both worlds. Insights Hub can be used to link products, plants, systems, and machines. It is one of the most important foundations enabling the use of AI in industry. The tool performs extensive analyses to make the vast amounts of data generated by the Internet of Things (IoT) useful for optimisation, simulation, and decision-making. The digital twin enables virtual testing of a variety of scenarios and promotes smart decisions in areas such as optimising production. In the future, using a digital representation of a machine tool and the associated manufacturing process, AI will be able to recognise whether the workpiece currently being manufactured meets quality requirements. Moreover, it determines the production parameters that need to be adapted to ensure that this remains the case during the ongoing production process. As a result, production is made even more reliable and more efficient and companies even more competitive.

Security is the highest priority A precondition for both Industry 4.0 and for artificial intelligence is a state-of-the-art, end-to-end IT infrastructure, regardless of the size of the company. That’s the only way a business can become part of the digital future. But this must always be accompanied by an awareness that digitalisation and cyber security need to go hand in hand. The risks are huge without the right safeguards in place.

Six barriers to AI adoption in manufacturing 1. Mismatch between AI capabilities and operational needs Organisations often neglect proper planning in the deployment of AI. They frequently fail to match the capabilities of AI platforms and the business pain points they are hoping to solve. This mismatch leads to failure and hinders the further adoption or scaling of AI in the business. Solution: Businesses should build a robust business case with a problem-oriented approach. The aim is to define business needs and calculate the value that AI can bring in contributing to the solution.

2. The absence of a strategic approach and leadership communication Businesses fail to draw up and implement a company-wide AI strategy and communication plan. This leaves the project lacking the right leaders to back the investment in AI and build support from end-users. Solution: Adopt a strategic approach and communicate proactively to demonstrate the benefits of AI and the new processes it brings. This will increase employees’ willingness to embrace it in their routines.

3. Insufficient skills at the intersection of AI and operations The leadership of AI projects is often handed to external consultants or traditional IT experts who have a limited understanding of AI.

Solution: AI applications must be developed and implemented by cross-functional teams with diverse knowledge of the convergence of IT, operations, data and AI technology.

4. Data availability and the absence of a data governance structure Manufacturing companies often rely on limited data sets and siloed or fragmented data. This can severely limit the accuracy and value of insights from AI. Solution: Create a single source of information that can be applied across the organization. Adopt a willingness to share data across traditional company boundaries to support AI adoption in the wider manufacturing sector.

5. A lack of explainable AI models in manufacturing There’s a lot of misunderstanding of AI models and a perception that they are overly complex. Manufacturers require new AI platforms that build trust through transparency and deliver meaningful, explainable and accurate predictions. Solution: Ensure the insights from AI are delivered in a format that manufacturers will understand and find relatable. This will speed the adoption of AI in the sector.

6. Significant customisation efforts across manufacturing use cases There is no one-size-fits-all application for AI in the manufacturing sector. Factories are complex

ecosystems with specific engineering and technology related to industry sector and product output. It is not possible to deploy off-the-shelf AI models. Solution: Further develop design, training and testing of AI models to allow for easy manual customisation.

Successfully implementing AI in manufacturing This approach begins with an initiation phase in which the project is endorsed by senior leadership. A data governance framework is put in place and cross-functional teams are established to drive the AI implementation. An identification phase follows to identify and develop a set of use cases that will add significant value by solving specific business problems. The assessment phase determines whether the previously identified AI use cases can be incorporated into existing operations, IT and data systems and the organizational culture. A feasibility phase follows which includes data testing, technology scouting to identify the best AI solutions and competence analysis to identify relevant skill sets in the workforce and areas for upskilling. Finally, the implementation phase defines a roadmap for deployment with testing a validation of AI models and collaboration to ensure the needs of the end users are being met to eliminate fears around the impact of AI technology.

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S U S TA I N A B I L I T Y

Serious about reducing your carbon footprint? (Part two) This month we get to the ‘pointy end’ of things. Using the concepts she explained in last month’s article, Nicky Andrews, Head of Carbon at thinkstep-anz, explains how to measure and reduce your carbon. But first, a recap.

Where we left off: identifying the main sources of your carbon emissions So you’ve taken the first step. You’ve split your greenhouse gas emissions into direct emissions (Scope 1), indirect emissions (Scope 2) and the hidden indirect emissions in your value chain (Scope 3). Now you’re ready to measure them.

emissions in Scope 3 Category 4 (upstream transport). Ask your suppliers: How much fuel do you use each year to transport your products to my factory? If they can’t tell you, estimate it. Units of activity (distance travelled between supplier factory and your site) x emission factor per unit = CO2e released. Now let’s look at an example for emissions involved after your product leaves your factory: Scope 3

fleet from fossil fuels and go electric? Or up the renewable energy that powers your plant? Manufacturer Essity Australasia is moving from natural gas to renewable geothermal steam at its Kawerau plant to dry its tissue. 2. Your product’s design. Can you redesign your product to use less electricity? Fisher and Paykel has done this with its appliances. 3. Your packaging. Can you reduce your packaging by packing your product differently? Redesign it to weigh less? Use more recycled material and make it easier for consumers to recycle too? For example, Coca-Cola New Zealand has changed its Sprite bottle from green to clear as clear plastic can be more readily recycled. 4. The waste you and your product create. Can you reduce this? GIB® manufacturer Winstone Wallboards has cut back the waste it creates when it makes plasterboard. It is also helping customers produce less waste when they use GIB® plasterboard on building sites.

Nicky’s tips to make progress 1. Set targets. Reducing emissions takes time. Confirm your baseline, set realistic annual targets and review your progress regularly.

Step two: measure your emissions Your Scope 1 and 2 activities Measuring your Scope 1 and 2 emissions is relatively simple. You’ll need two pieces of data: the volume of emissions your activities create (‘your activities’) and the impact those emissions have on the environment (‘emission factors’). First, confirm your activities. For example, how many kilometres did your employees drive in your company vehicles last year? How many kilowatt hours of electricity powered your plant? You’ll have much of this information to hand in documents like monthly fuel and power bills. Second, find your emission factors. An emission factor represents the amount of GHG an activity releases. The Ministry for the Environment (MfE) provides generic information factors, along with helpful workbooks and guides. For example, according to MfE, one litre of diesel used for transport emits 2.69 kg of CO2 equivalent.

Category 11 (using sold products). Say your product is a dishwasher. Ask yourself these questions: How many dishwashers have we sold this year? What’s our dishwasher’s typical lifespan? How much energy does one cycle use? How often would a customer use their dishwasher? Units of activity (kilowatt hours of electricity) x emission factor per unit = CO2e released over your products’ lifetimes.

Step three: plan how you’ll reduce your emissions Reducing emissions is about thinking differently. What can you change? Here are some examples manufacturers should consider. Think about: 1. The energy you use. Can you move your

3. Boost your influence. Help your procurement and sales teams talk about your carbon footprint so your suppliers and customers can help you reduce it. 4. Work with your industry association. You’ll go faster together. For example, an industry may be able to influence common suppliers to reduce their emissions. In addition, some industry groups such as the building industry are producing tools to help members tackle emissions. 5.

Build your skills. You may need help to measure and plan your reductions in year one. You’ll learn a lot! Then aim to do this work in-house after that.

Get started now! Yes, changes take time and cost money, but the benefits are many. Get started now and set your manufacturing business up for a low-carbon future.

Third, do the maths. Units of activity x emission factor per unit = CO2e released. Your Scope 3 emissions These are the emissions in your value chain. They sit with your employees, suppliers and customers.

www.thinkstep-anz.com

Here’s an example of measuring the carbon in your supply chain. Say you want to estimate the

20 NZ Manufacturer October 2023 /

2. Work with your suppliers and customers. You can’t reduce your emissions on your own. Ask your suppliers to reduce the packaging on the raw materials they send you. Talk with wholesale customers about combining shipments to reduce your transport emissions.

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COMMENT

Win/Loss ratios to keep your laser cutting job shop competitive By Bruce Thomas, Product Executive, Tempus Tools

For laser cutting job shops, staying competitive is essential to running a profitable business. But how do you measure that? How do you know where you sit compared with other job shops in your area, with a similar laser power, or with a similar service offering? One way to understand your position in the marketplace is to look at your win/loss ratio. The Tempus Tools leadership team, which has more than 100 years of combined experience – extending from the job shop floor to the formation of entire laser cutting enterprises – has found that a typical win/loss ratio is about 30-40%. This means, for every 100 jobs you quote for, you win 30-40 of them. But it is important to consider not just how many jobs you win, but how profitable they were to your business. Here are two common mistakes we see: 1. Your win/loss ratio is under 30%, so you aren’t winning enough jobs. This can often be because your pricing is too expensive and is not competitive with other companies offering similar services. 2. Your win/loss ratio is above 40%, so you are winning a lot of jobs, but your pricing may be too cheap, and it’s becoming a lot of work for very little profit margin.

My win/loss ratio is off – what should I do? The first thing all laser cutting businesses should consider is what they do best. This is usually what makes the most money and achieves a long-term profitable business. For example, you might specialise in cutting thicker materials. Your team might have good expertise in this area, can produce high quality jobs, and you have the right stock on-hand. In this case, you should look at accepting more quotes that involve thicker materials. Other factors to look out for include: • Material pricing. This is a significant cost for any laser cutting business, so it is crucial for any job shop to maintain the correct margin. • Hourly rate. This should be monitored all the time, and a long-term strategy should be put in place. It can sometimes hurt the business to drop your rate too much just to win a particular job. • I am losing too many small jobs. This could mean your setup costs are too high, making you less competitive with other job shops. • I am losing too many large jobs. This could mean you haven’t considered the discount others are providing for larger work, due to economies of scale. • I’ve seen what other companies are offering, and wonder if I should lower my price to that

Providing accurate and consistent costs is an effective way to boost the overall productivity and profitability of laser cutting job shops

level too, so I can win the work? This strategy is not advisable, because the other company might be cutting corners on quality, or might have an inaccurate quote to begin with. Nobody wins with a race to the bottom on price – that only favours those with poor quality and no backup. The metal cutting industry has a responsibility to maintain high standards of quality and service, which benefits both customers and job shops. The goal is to achieve long-term profitability, not to compromise to win a particular job.

How do I keep all these figures accurate? One of the most effective ways to win and retain business is to provide accurate and consistent quotes. But job shops use all sorts of methods, from manual spreadsheets to home-grown software, and these don’t always arrive at the right price, which can result in unexpected loss of jobs. Tempus Tools conducted its own research and asked more than 250 users about their previous quoting methods. 54% of users in the survey admitted they had inaccurate quoting methods, which is indicative of the industry more broadly. One solution is ToolBox, by Tempus Tools, a multi-functional laser cutting quoting software provided using a SaaS (Software as a Service) model, so laser job shops can achieve accurate and consistent pricing every time. ToolBox is rules-based, so users can set rules for material cost, hourly rates, secondary processes, and other parameters required to create accurate quotes. ToolBox has been designed so that anyone can use the program, with no CAD or CAM training or software required. Job shops such as Red Horizon Engineering have found this to be a great benefit, with owner

Steve Geroski commenting, “ToolBox has been one of the smoothest and most intuitive programs I’ve ever used. This meant I could implement it straight away and start quoting for orders while continuing to set up other parts of the job shop.” Frank Maat, owner of Rolleston Sheetmetal Engineering, added “I like that my laser machine operator and I can get an accurate idea of material usage, time, labour, and other relevant data for each job – and it greatly reduces the risk of human error, because ToolBox is a rules-based program.” Hurstbourne Forge owner, Jack Swanborough, says “ToolBox is much better than anything we’ve used before, especially for larger and more complex quotes – and I like that it handles all the folding and secondary processes automatically.”

Conclusion – consistency and accuracy are key If job shops are not running a quoting system, most of the time they are just guessing on pricing when they respond to quotes. This guesswork not only takes longer to complete, but can cause inaccuracies and inconsistencies that can lose business. With ToolBox, users can set rules to keep pricing consistent and accurate, removing irritating customer issues when they receive two different prices for the same job. So, if you are looking to see how competitive and profitable your job shop is, look at your win/loss ratio, compare this with your profit and loss statement, and see where adjustments need to be made. Laser cutting quoting experts can help by providing seasoned advice on where minor changes can make a major difference to operations.

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NZ Manufacturer October 2023

WORKSHOP TOOLS

Cloud-based digital workplace management solution launched Pitney Bowes has launched its new proprietary Smart Access Management (SAM) software solution in Australia, New Zealand, and the United Kingdom. SAM will be rolled out globally later in the year. SAM has been designed to help organisations more efficiently manage the movement of employees, visitors, and contractors across multiple sites from a single, centralised online portal. Venkat Rao, of Vice President & Country Head ANZ, India & ASEAN, Pitney Bowes, said, “Pitney Bowes has been supporting organisations across ANZ with digital visitor management solutions for more than 10 years. Customer feedback has helped Pitney Bowes create a product, which more directly meets the changing needs and expectations for visitor and people management and augments the existing Pitney Bowes portfolio. As such, SAM includes key new features like facial recognition, as well as the ability to create an unlimited number of workflows for different visitor types.

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SAM is built on Pitney Bowes’s internal software platform, updates can be rolled out and new features–such as facial recognition, unlimited custom workflows, a mobile companion app, and workspace management–added more seamlessly. Additionally, the new solution is simple to set-up, which ensures it supports frictionless integrations into existing technology stacks. The new cloud-based solution is fully customisable and scalable, giving businesses the capacity to create workflows for different visitor types, while customising the user experience, including branding, registration fields, and health and safety messaging. Organisations can also set access restrictions to elevate their health and safety compliance and account for everyone on-site in the event of an

emergency. With comprehensive monitoring and reporting capabilities, SAM lets organisations quickly run real-time reports and monitor onsite behaviour to ensure everyone is safe and their presence is recorded and stored in a secure, real-time database. SAM is available now in a range of options to accelerate registration for both occupied and unattended receptions, including kiosk, desktop, or countertop devices. The solution fits into the larger ecosystem of offerings supplied to clients via the PB360 platform of services, which is hosted and powered by Amazon Web Services (AWS).

Integrated ERP helps manufacturers achieve greater productivity

wastage that typically results from hunting down information and verifying its accuracy. Integrated ERP systems can also significantly reduce operational costs. By identifying manufacturing variations and analysing business activities, these systems help optimise raw material use and maintain optimal inventory levels. Organisations using an integrated ERP reduced operational costs by 25 per cent and administrative costs by 23 per cent, according to recent data. Ultimately, such solutions help tighten standards, reduce costs, and improve efficiency, leading to shorter production cycles. ERP systems help to compare actual costs against

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industry standards to provide a snapshot of the outcome. This feature lets businesses identify variances and adjust materials, processes, and techniques as necessary, contributing to efficient product delivery within budget constraints. In today’s digital age, businesses must provide superior customer service. Integrated ERP systems facilitate this by providing a complete snapshot of client-related information on a single screen. Additionally, empowering customers to access their data online increases their satisfaction and boosts organisational efficiency. Andrew Mamonitis said, “When choosing an ERP solution provider, it’s important to consider a range

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of factors, including: industry experience; flexibility; scalability; continual software updates; and comprehensive training and support. An integrated ERP system can help manufacturers streamline processes, creating a more controlled and productive environment, so it’s essential to make the right choice.” The increasing complexity and competition in manufacturing makes integrated ERP systems a powerful tool as they facilitate streamlined processes and help create a more controlled and productive environment. With the right provider, an ERP system can become an essential capital investment, driving growth and innovation in manufacturing.

WORKSHOP TOOLS

Full turnkey laser cutting solutions With Han’s Laser’s precision laser cutting technology and Leabourn & Rose’s technical expertise the best innovative solution for present and future requirements is available. Han’s Laser has a solid 27 years of laser manufacturing experience. Established in 1996, Han’s Laser is now described as the world’s largest laser equipment manufacturer. Han’s Lasers success is its fully vertical integrated manufacturing process. Producing and testing all core components internally, starting with the integral welded frame that is stress relieved. The laser head is machined in-house and assembled in dust free medical grade rooms; the CNC controller is self-developed; and in 2016 they purchased 100% of the Canadian laser pinnacle, Coractive. Leabourn & Rose is a company that backs up what it sells. It is supported by 45 years of machine tool knowledge, technical expertise, and quality brands – and that makes a big difference. They don’t just sell you a piece of equipment, they assist in implementing a solution that will help you to increase efficiencies, reduce costs and increase productivity. They will help you get the right machine, and their exceptional team will support you every step of the way.

from 3kW to 50kW. They offer an exceptional balance of high cutting quality, fast cutting speed, high production efficiency, and low production costs.

Automation Production Line Han’s Laser cutting automatic production line signifies a significant advancement in the sheet metal processing industry. By seamlessly connecting multiple laser cutting machines and implementing a comprehensive automatic loading and unloading system, this innovative solution has revolutionized productivity, precision, and cost effectiveness.

Tube Lasers Han’s Laser tube cutting series stands out as a cutting-edge high-tech product. Han’s offers models for cutting pipes, RHS, angle iron and “H” profile from Ø20mm to Ø500mm in carbon steel, stainless steel, or aluminium alloys.

acceleration and high traverse speeds the Han’s Laser moves at.

Coractive Laser Source 100% owned by Han’s Laser Group, manufactured in Canada with CE certification, the Coractive laser source boasts world leading wall power efficiency of 36.5% and beam stability < ±1% on full load working conditions. Coractive self-developed back-reflection isolator absorbs 99% of back-reflection, delivering unmatched capability on highly reflective material cutting. The Coractive laser source exceeds the quality, reliability, and performance of other brands.

Safety Requirements Met The Han’s Laser machine covers off safety concerns, they include enclosed cutting zone, power stabiliser, light curtain protection around the change table, and a Donaldson fume filter.

Compared to traditional methods of cutting and drilling pipes, the Han’s Laser tube cutter can save an impressive 50% to 90% of processing time.

Han’s Laser Controller and Nesting Software

Flat Bed Lasers

The self-developed Han’s Laser CNC controller is intuitive and powerful, it utilises a digital EtherCAT (Ethernet for Control Automation Technology) system to allow real-time control of the servo motors.

Han’s Laser manufactures a large selection of Flat Bed laser cutting machines options with models ranging

The speed of this communication link is essential to maintain accuracy and repeatability at the high

Power and pulse, ready to go

High performance, low weight

For more information call Matt on 0220 200 626

www.kemppi.com

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NZ Manufacturer October 2023

DEVELOPMENTS

Creativity key to successful innovation says newly appointed Chief Scientist Callaghan Innovation’s first Chief Scientist says both creativity and science excellence are vitally important if Aotearoa is to realise its environmental, social, and economic potential.

“To do this successfully requires not only science and technological excellence but also the creativity required to develop and commericalise a successful product for global markets.”

Andrea Bubendorfer joins Callaghan Innovation’s executive leadership team on a two-year secondment from her current position leading the Applied Technologies team.

She has experience in diverse fields including high-temperature superconductivity, medical technologies, and microfabrication. A career highlight was leading the award winning MicroMaker team that developed a scalable, rapid 3D printing technology that creates tiny devices that help to simplify the manufacturing process and can significantly reduce costs.

“I’ve always loved science but getting things out of the lab so they can be used by people to create prosperity and a better future gives so much more meaning to our work,” she says.

“It was a humbling experience working with such

talented scientists and engineers to turn this idea into reality. I look forward to applying learnings from this experience and my career more broadly to a role that gives science a voice at the top table,” says Andrea. In her new role Andrea will work closely with Callaghan Innovation executive leadership to develop the national innovation agency’s science strategy and ensure organisational science and technology capabilities meet the needs of Aotearoa.

Government invests in tiny tech with global potential An ambitious and internationally-connected programme to leverage New Zealand’s niche expertise in quantum technology research will receive up to $12 million of government funding over the next five years. The Quantum Technologies Research Programme will be developed by Te Whai Ao – Dodd-Walls Centre for Photonic and Quantum Technologies, one of New Zealand’s leading centres for quantum research and a Centre of Research Excellence. It will focus on increasing international connectivity and domestic capability in this rapidly developing sector that leverages the principles of quantum physics to build new and advanced technologies. “Quantum technologies have potentially transformative applications across many parts of society and in nearly every industry including climate and environmental monitoring, drug discovery and medical imaging, materials sciences and

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communication,” says MBIE Manager International Science Partnerships Loveday Kempthorne. “This programme will support the robust research ecosystem needed to translate Aotearoa New Zealand’s emerging strengths in quantum research into a diverse range of opportunities, enabling our researchers to initiate and respond to collaboration prospects and to become valued partners as governments, large technology companies and start-ups around the world invest heavily to achieve breakthroughs in quantum innovation.” Hosted by the University of Otago, Te Whai Ao – Dodd-Walls Centre has established strong connections with world-leading research organisations globally and draws expertise from research institutions throughout New Zealand. These networks will help ensure investment reaches the wider Aotearoa quantum research community. “The Quantum Technologies Research Programme

is a prime opportunity to harness and build on our nation’s strength in quantum technologies. This funding allows us to develop our strategic capabilities and grow our ecosystem to a point where Aotearoa has the knowledge and human capital to leverage the nascent “second quantum revolution,” says Te Whai Ao – Dodd-Walls Director, Professor Frédérique Vanholsbeeck. “We are thrilled to expand our current research programmes and pay particular attention to the growth of Māori and Pasifika engagement within the quantum sector.” Some of first countries New Zealand will seek to collaborate with through this programme include the United Kingdom, Japan, Singapore, the United States and Germany. Australia is also active in quantum technology research and an important partner for New Zealand alongside our association to Horizon Europe.

Carbon emissions on the way down

While these rates of increase may look impressive, the actual number of EVs remains very low. Nonetheless, emissions cuts already run into hundreds of thousands of tonnes per year, a significant part of which is due to the clean car discount.

Need for more investment New Zealand is not yet on track to meet its international pledge (known as Nationally Determined Contribution, or NDC, and covering all emissions from 2021 to 2030) or the second and third carbon budgets. Many important policy matters are either unresolved or stuck in review: how to meet the NDC, whether and how to prioritise gross emissions reductions over tree planting, how to reduce agricultural emissions. In its pre-election fiscal and economic update, Treasury warned of the risks these uncertainties entail:

supposed to fall 41% by 2035 – a massive task that will involve pressing hard on all three parts of the avoid/shift/improve transport framework. Unfortunately, the framework is looking shaky. Regarding avoidance, even the draft local plans for avoiding car travel are not yet ready. Labour and National are competing as to who can offer the most extravagant motorway plans, known to encourage driving. When it comes to shifting modes of transport, there has been some expansion of urban cycleways. But Auckland’s city rail link will not open until 2026. And a great deal has to happen to meet the Climate Change Commission’s draft advice to “complete cycleway networks by 2030 and take steps to complete rapid transport networks by 2035”. The National Party plans to cut public transport funding and increase fares.

Lack of an integrated plan

As for improvement, the National Party plans to cancel the clean car discount and weaken the clean car standard. The current plan requires 30% of the entire light-vehicle fleet to be zero emission by 2035 (currently at 1.4%), which is ambitious but doable under the existing framework.

In the year to June 2023, oil was responsible for nearly three-quarters of fossil fuel emissions. Two-thirds of this came from transport. But transport emissions are

New Zealand still doesn’t have any kind of fuel-efficiency standard or coordinated policy on heavy-vehicle emissions.

The actual cost of achieving emissions reduction targets and addressing risks from climate change will likely exceed the overall size of the Climate Emergency Response Fund.

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Renewable energy New Zealand’s renewable share for all energy (not just electricity) has been stuck below 30% for decades. It is supposed to reach 50% by 2035 and then continue to increase until use of fossil fuels is almost entirely eliminated. New Zealand has untapped resources of renewable energy, wind, solar and geothermal. An even bigger supply of offshore wind is now being explored. At the recent New Zealand wind energy conference, many massive possible projects were mooted. But delegates said they needed to be sure the electricity demand would be there before making final investment decisions. The fate of the Climate Emergency Response Fund is of great importance, as international evidence shows:

It is the use of revenues from carbon prices, not the carbon prices themselves, which trigger change. Depleting this fund will slow electrification and demand for renewable energy. New Zealand’s current emissions reduction plan, which runs to 2025, is a package. Its parts support each other and attempt to balance many people’s needs. If one part is weakened, the difference has to be made up elsewhere.

DEVELOPMENTS

Engineering consultants celebrated at 2023 ACE Awards Gala New Zealand’s leading engineering consultants were celebrated at the 2023 ACE Awards Gala in Wellington, as part of ACE New Zealand’s Futurespace conference. An industry calendar highlight, the awards recognise the consulting excellence that underpins some of the country’s most impactful projects – from shared pathways that provide low-carbon transport options to restorations of culturally significant buildings and equipment repairs to ensure business continuity.

it’s vital that we celebrate and nurture our talent and everything this sector offers to Aotearoa and beyond.”

ACE Chief Executive Helen Davidson says the event is the pinnacle of achievement for the outstanding talent that exists within the country’s professional services consulting sector, especially at a time when these consultants are operating in a very complex environment.

GOLD Award winners

“We’re living in extraordinary times. On the one hand, the government is investing in infrastructure to rebuild and revitalise the economy so there’s a lot of work in the pipeline, but on the other hand there’s also a massive skill shortage. It’s a real challenge for businesses to attract and retain the highly skilled people they need to deliver these vital projects.” Davidson also cites this year’s severe weather events throughout the country and the industry’s technological advances as having a significant impact on the sector. This year’s ACE Awards saw more than 20 entries evaluated and 14 awards presented across a range of categories, including Gold for exceptional consultancy service that sets a new industry standard, Silver for great consulting service that demonstrates great achievement and service to client, Merit for consulting service that exceeds expectations, and an Emerging Leader accolade.

SILVER Award winners

The 2023 ACE Awards recipients are:

• Kauri dieback mitigation in Northland’s walking tracks by Frame Group for Northland Regional Council • Auckland Harbour Bridge emergency repairs by Beca for Waka Kotahi • Wellington network operational readiness for Transmission Gully opening by Aurecon for Waka Kotahi • Northern Corridor improvements – Design Services by Jacobs and WSP in alliance with Fulton Hogan, HEB Construction and Waka Kotahi NZ for Waka Kotahi

• Speeding up electrification – the transportable switchroom journey by Electronet for Transpower NZ

• Press building and front-end automation by Aurecon for Constellation Brands NZ

MERIT Award winners

This project also won the Client Award.

• Te Matatiki Toi Ora The Arts Centre – Observatory Hotel by Holmes for The Arts Centre Trust • Te Ara Ki Uta Ki Tai shared path – Section 2 by Stantec for Waka Kotahi and Auckland Transport

EMERGING LEADER Award winner

Other special awards included a Client award which celebrates a client who’s made a noteworthy contribution to the outcome, and a Sustainability award for consulting services with outstanding sustainability elements.

• St James Theatre and Ballet Building by Beca for Wellington City Council

The judging panel evaluated the submissions, conducted client interviews and toured project sites.

• Cathedral stabilisation by Holmes and Naylor Love for Christ Church Cathedral Reinstatement

Davidson adds it is important now more than ever to celebrate the sector’s triumphs.

• Te Mato Vai by GHD for the Cooks Islands Government

“If we want to attract and retain our best critical thinkers and ensure New Zealand is a world leader in designing sustainable futures for our communities,

• Lime Kiln failure and emergency repair by Index Engineering for Oji Fibre Solutions – Kinleith Mill

• Victoria Mills, Associate Environmental Engineer and Water Team Leader at Beca in Tauranga.

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DEVELOPMENTS

Wellington students get work-ready at Outward Bound Mana College year 13 student LA Matapuku-Kitiseni knows exactly what her career will be when she leaves school – she’ll train to be an electrician just like her uncle. However, she admits she lacked many of the soft skills - like patience – essential to successfully navigate the world of work. That is before she was nominated to attend Outward Bound’s ‘Whakatipu’ course. “Students will carry these crucial soft skills with them for the rest of their lives, no matter the industry they work in, but unfortunately, high schools often struggle to create space within their traditional curriculum to teach these skills to students, leaving them ill-equipped to enter the workforce,” says Krishan.

decision-making. When a challenge comes up now, I often think, “I got through Outward Bound, so I should be able to get through this! It was fantastic.” Like Angel, LA didn’t know much about how important soft skills are before she attended Outward Bound, but knew that being on the course would help her become better as a person and in her future career. “I was so surprised how our group connected so fast. Everyone was so comfortable with each other. It was through this group that I learned that everyone is different, whether that’s where they’re from, their culture, their views, how they think and feel. And that was cool for me to learn and accept. “The reflections we did at Outward Bound have helped me learn about the importance of soft skills. I know that they’ll be helpful for me, and my confidence has definitely improved,” adds LA.

LA joined 13 other secondary school students from around the country to push themselves to their limits on the course, which was developed to improve youth employability. “LA is one of my top students and displays a lot of talent in construction,” says Steve Haerewa, Mana College’s Construction school head. “We selected her to go on the Whakatipu course because we wanted her to develop her confidence, work on her communication skills, and get out and see the world. “She is a young woman who needed to be pushed out of her comfort zone to gain more life skills, and we knew Whakatipu would give her that.” Being with so many people different from her on the course gave LA a new appreciation of the world. “Being at Outward Bound changed my views. I’ve definitely become more accepting and patient, remembering that we all think and feel things in our own way. I know that when I leave school, I’ll be working with people who are different to me, and that’s great.” Steve wasn’t surprised by this discovery. “I told her that’s the world, and that’s how it works. LA deals with people better now and is more open-minded. She’ll realise how important these skills relate to a range of people when dealing with real-world situations.” The eight-day Whakatipu course aims to arm secondary school students with valuable work-readiness skills to make it easier for them to transition from education to employment. Students are immersed in challenging outdoor experiences where they work with 13 other students to overcome obstacles and solve problems as a team. It offers a perfect mix of adventure, teamwork, challenge, and reflection. Krishan Kumar, Outward Bound’s Community Development Partner, believes the programme offers rangatahi a unique opportunity to not only develop soft skills but to put them into practice actively.

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Wainuiomata High School student Angel McMillan has always been inspired by engineering and discovering how things work. Her dream to become an engineer has begun with a part-time job in a factory, and this year has a Gateway placement at Petone Engineering. Gateway co-ordinator Tony Harrington says Angel has a lot of potential, and amassing some life skills will stand her in good stead once she leaves school. He says he was excited to nominate Angel as a participant to attend Outward Bound. “I’ve sent Gateway students to Outward Bound before, and the Whakatipu course provides a fantastic opportunity to develop soft skills. “I’m really encouraged that a programme like Whakatipu can help grow what is already in a student like Angel who has a lot of potential, and to develop life skills that will enable her to flourish in the world of work. She has been able to develop her teamwork and communication skills which will help her with the life habits she’ll need when she leaves school to pursue her career,” he says. Now she’s back from her course, that sentiment has proven right. “I didn’t know what soft skills were before I went to Outward Bound,” admits Angel. “But I knew I wanted to learn about teamwork and have some new experiences. And I did! “I learned so much about how soft skills apply to everyday situations. In every activity we did, there was a lot of teamwork needed, and we needed to make sure everyone was involved. I realised how important these types of skills, such as leadership, are. My experiences at Outward Bound have also helped me with my confidence, resilience and

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This year, places on the Whakatipu course were allocated to regions throughout New Zealand, including Northland, Auckland, Waikato, Thames and Coromandel, Taranaki, Rangitikei, Horowhenua, Hutt Valley, Wellington, Nelson and Tasman, Canterbury, Otago and Southland. Outward Bound is working with local government, employers, schools and community organisations to grow the programme. “Outward Bound gathers employer and teacher feedback about a student’s areas for growth prior to the course, and this is used to tailor the course delivery to their individual needs with targeted outcomes. “Employers have identified several areas where school leavers need to improve their workforce skills, including time management, how prepared they are for work, problem-solving and decision-making abilities. With the labour shortage crisis, employers are looking towards a younger workforce, and they need these rangatahi to learn the mindset and responsibilities that come with employment.” The Whakatipu programme would not be possible without the generous funding support of the Ministry of Education, Foundation North, Joyce Fisher Charitable Trust, Woolf Fisher Trust, Estate of Peter Wilding and We care Foundation. Special thanks to Mayors Taskforce for Jobs for their long term support and Norwood, who has invested in creating their own Whakatipu course for their valued team. This year marks 61 years of Outward Bound running courses to develop youth leadership and personal skills since the New Zealand school’s inception in 1962. Almost 70,000 New Zealanders have attended courses designed to help them reach their full potential through outdoor challenges.

THE LAST WORD

The global chip industry’s complicated contours decades in the making The Netherlands has been an innovation engine for centuries, giving us the world’s first multinational corporation, telescope, and cassette tape. Now, it’s an essential link in a backbone of innovative silicon keeping the global economy upright. The mixture of happenstance and geostrategy that helped make this small European country key to the global semiconductor market is depicted in delicious detail in Chris Miller’s “Chip War.” The book, published last fall, couldn’t have been better timed. Miller, an associate professor of international history at the Fletcher School, uses a colorful cast of characters to tell the story of a truly pivotal industry’s formation, and explain why altering it in a meaningful way seems unlikely any time soon – regardless of mounting geopolitical pressure. Chips are coveted not least for the role they play in artificial intelligence tools seemingly poised to shake things up for just about everyone. The more we want them, though, the more expensive and difficult they are to make. It’s all gotten very complicated. Take the Dutch niche in the supply chain, for example – it’s based on one company’s machine “that took tens of billions of dollars and several decades to develop,” Miller writes, and uses light to print patterns on silicon by deploying lasers that can hit 50 million tin drops per second. It’s an industry full of such mind-bending extremes. In an interview with the Forum’s Radio Davos podcast, Miller marvelled at having recently visited a facility in the US being built with “seventh-biggest crane that exists in the world,” which will eventually assemble chips mounted with transistors “roughly the size of a coronavirus.” Nvidia, the company now most closely identified with chips powering artificial intelligence, features prominently in Miller’s book. The company traces its roots to a meeting at a 24-hour diner on the fringes of Silicon Valley, he writes. At a certain point it realised that its semiconductors used for video-game graphics could do a good job of training AI systems. Earlier this year, its market value increased by $184 billion in a single day.

The ongoing race to gain an edge in chips That massive crane Miller mentioned is being put to work in the state of Arizona, which may be a key part of a current US government effort to “win the race for the 21st century” through semiconductor manufacturing. The EU has its own initiative designed to strengthen chip competitiveness and resilience. And a proposed, $20 billion effort to build India’s first semiconductor factory (or “fab,” in industry lingo) recently fell through when a key partner backed out. In his Radio Davos interview, Miller said the daunting size of the previously planned investment in India is about standard for any new, fully-fledged manufacturing facility. Critics of what the US spends on its military might like to know that “making semiconductors is so expensive that even the Pentagon can’t afford to do it in-house,” he writes. Sharing the considerable financial burden of making chips was long ago deemed necessary. Research in one country, building elaborate lithography tools in another, manufacturing in another, and finally assembling in yet another. The system works in good times; in less-good times it seems problematic. The shape of the industry was no accident, though. “Microelectronics is a mechanical brain,” Soviet leader Nikita Khrushchev pronounced in the depths of the Cold War, according to Miller’s book, “It is our future.” Khrushchev was right, but maybe not exactly in the way he would have liked. At that time, the US was only about four years ahead

of the Soviets in chip technology, as the industry’s earliest companies like Fairchild Semiconductor and Texas Instruments focused on space exploration and nuclear weapons. Once those firms tapped into the vast American consumer market via electronics, the rest was history, Miller writes. An arms race with nuclear warheads was one thing, a race to cram millions of transistors onto a single chip was another. The Soviets fell behind, and Asia came to the fore. Fairchild began sending its chips to Hong Kong SAR for assembly in the early 1960s. A couple of decades after that, a one-time English literature student named Morris Chang founded TSMC in Taiwan, China. The company now churns out roughly 90% Philip Lairdadvanced chips, and has recently been of the world’s filing a sizeable portion of global semiconductor patent applications. Having the right chips or not can make a big difference in a technology market, or on a battlefield. But, as Miller notes, going it alone in such an expensive and complex industry has never worked. It’s unclear whether forming distinct, competing supply chains would be much better. One of the most compelling points Miller makes is that among the many things about chips we take for granted, the biggest might be the mind-blowing increases in computing power they give us year after year. But there’s no guarantee that will continue. Moore’s Law, which long ago posited that the power crammed onto a single chip would double about every two years, has so far proven resilient. But it isn’t really a law – it’s just an educated guess.

Nvidia’s chips aren’t made anywhere near Silicon Valley, though. Like most advanced semiconductors they’re produced by another company, TSMC, at a facility in Taiwan, China that Miller describes as “most expensive factory in the world.” In fact, US chip production in general has declined sharply in recent decades. Instead, the country has focused on research and design, while relying on links with East Asia and the Netherlands for other elements. But those links risk becoming “choke points,” as Miller describes them, if they’re disrupted by conflict or a natural disaster (it’s not just the plot of a 1980s James Bond film; Miller noted in his Radio Davos interview that an unsettling amount of the industry is located in places relatively prone to earthquakes). These hazards, and global competition that’s formed harder edges of late, have fueled efforts to build chip resilience through greater independence.

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