NZ Manufacturer February 2014 February 2014
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Manufacturing Technology Boeing may have found ultimate jet fuel.
The Future of Manufacturing The reality of 3D printed houses.
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Page 13
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www.solidtec.co.nz
Events EMEX 2014 highly anticipated.
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Prospects on the up Unions pushed Toyota too far
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an you feel it...the financial air bumps smoothing out more and more and the realisation that 2014 can be a good one for our manufacturers and the economy? After all, the manufacturing sector has been in expansion now for 16 consecutive months, with the last six months. averaging 56.2. Currently, we are enjoying some of the highest levels of confidence seen over the last decade. As MYOB CEO Tim Reed put it recently, “In 2014, both Australia and New Zealand can enjoy the prospect of improving economic conditions. Here, the effects of the Canterbury rebuild and growth in Auckland, combined with the rural sector’s performance, are underpinning
– Doug Green
what is likely be one of the most significant and sustained periods of growth in the country’s recent history. The Food and Beverage industry has been a pretty consistent performer and as Catherine Beard at Export New Zealand says “Manufacturing in NZ is heavily influenced by the building and construction industry, so as this picks up a head of steam I expect manufacturing will continue to thrive. Food and beverage looks to be well supported by growing demand in Asia (for commodity exports like dairy and meat and kiwifruit) and in Australia added value food continues to do well.”
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n 2008 there were six companies manufacturing cars in Australia but by 2017 there will be none. The motor industry in Australia has been struggling for years and now with the demise of Toyota, there is urgent need for the future of manufacturing there to realign itself – especially to the plight of the component manufacturers who by 2017 will be struggling to exist, unless they start now to find some new markets for some new products. It has basically become unsustainable for companies to continue producing cars in Australia. Ford, Holden and Toyota have each blamed multiple factors rather than a single issue. The common factors have been a high Australian dollar that has hurt export opportunities
– mostly for Toyota and Holden – and sweetened deals for those brands importing, Australia’s high production/wage costs, and a car market that has become too small and fragmented – 50-odd automotive brands compete for a slice of a million-vehicle market. Despite government industry assistance that has been estimated at between $500 million and $1 billion annually, the local car makers have struggled financially. Ford has lost about $600m since 2008, Holden was profitable only twice between 2005 and 2012, and while Toyota posted a $149m profit in 2012 it lost $150m over the three previous years. Once Ford declared in May 2013 it was planning to abandon local
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NZ Manufacturer February 2014
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NZ Manufacturer February 2014
CONTENTS Advisors
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DEPARTMENTS
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MANUFACTURING TECHNOLOGY
Is the Manager of the Maintenance and Reliability Centre, Manukau Institute of Technology.
Survey finds CEOs more positive than global peers. • Boeing may have found ultimate jet fuel. • Autodesk takes over Delcam and Intercad acquires Solidtech Solutions.
MANUFACTURING TECHNOLOGY Microfactory printer combines additive manufacturing and 3D printing.
Page 7 – MANUFACTURING TECHNOLOGY – On-machine controller simplifies system architecture.
Craig Carlyle
DESIGN
Craig Carlyle is Director of Maintenance Transformations Ltd, an executive member of the Maintenance Engineering Society and the Event Director of the National Maintenance Engineering Conference.
The project start up.
EMEX 2014
• FeatureCAM 2014 to be demonstrated. • Hose reels on show.
COMMENT
Tradable sector needs policy focus.
DEVELOPMENTS
• Sector to benefit from new funding. • AGGAT company signs technology deal.
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Page 12 – THE FUTURE OF MANUFACTURING – 3D printed material stronger than steel.
Catherine Beard
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Is Executive Director of Export NZ and Manufacturing, divisions of Business NZ, New Zealand’s largest business advocacy group, representing businesses of all sizes.
THE FUTURE OF MANUFACTURING The realisation of 3D printed houses.
EXPORT NEWS
Brian Willoughby
Asia in the driving seat.
PRODUCT NEWS
• Calibration system keeps smart grids running. • Advanced technologies at AOG 2014.
Page 15 – AVIATION – A350 Singapore Airshow star.
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Is president of the NZ Manufacturers and Exporters Association and managing director of Contex Engineers and Plinius Audio.
PRODUCT NEWS
• Hold on with CamJam. • New injection technology in one machine cell.
THE FUTURE OF MANUFACTURING
• Catalytic converter to cut car manufacturing costs. • 3D printed chocolate as a midnight snack.
BUSINESS NEWS
Software updates –how useful are they?
WAIKATO FOCUS
• Location, location, location. • Waikato fast turning waste into wealth.
Page 18 – PRODUCT NEWS – Sealed switches make seeing easier.
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.
Professor John Raine ➡ Is Head of the School of Engineering and Pro Vice Chancellor – Innovation and Enterprise at the Auckland University of Technology.
DEVELOPMENTS
• Companies commit to Waterloo Business Park. • Dairy farming made smarter. • First erasable printer/copier for NZ.
EVENTS
• Engineering event highly anticipated. • High performance solutions at Interpack 2014.
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27 30 31
Larry Wiechern
BUSINESS NEWS
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5 6 7 8 9 10 11 13 14 16 17 19 20 22 26
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FOOD MANUFACTURING
Food sorting equipment draws interest.
REAR VIEW
2014 from grumpy to happy.
Page 29 – ENERGY REPORT Renewable energy sources are just a power failure.
Bruce Goldsworthy
An advocate for NZ manufacturing for 40 years, he was Chief Executive of the Auckland Manufacturers Association for seven years He has been Manager of EMA’s Advocacy and Manufacturing Services, and lately manager for Export New Zealand in the north.
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NZ Manufacturer February 2014
EDITORIAL
Most managers think the key to growth is developing new technologies and products. But often this is not so. To unlock the next wave of growth, companies must embed these innovations in disruptive new business models.
Publisher
Media Hawke’s Bay Ltd, 1/121 Russell Street North, Hastings, New Zealand 4122.
MANAGING Editor
Doug Green T: +64 6 870 9029 E: publisher@xtra.co.nz
CONTRIBUTORS
Holly Green, John Walley, Wolfgang Scholz, Aaldert Verplanke, Shaun Conroy, Graeme Stillwell.
ADVERTISING
Doug Green T: + 64 6 870 9029 E: publisher@xtra.co.nz
Design & PRODUCTION
Karl Grant T: + 64 6 857 7942 E: daylightmarketing@xtra.co.nz
WEB MASTER
Dan Browne E: dan@membrana.co.nz
PUBLISHING SERVICES
On-Line Publisher Media Hawke’s Bay Ltd
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E: info@nzmanufacturer.co.nz Free of Charge.
MEDIA HAWKES BAY LTD
T: +64 6 870 4506 F: +64 6 878 8150 E: mediahb@xtra.co.nz 1/121 Russell Street North, Hastings PO Box 1109, Hastings, NZ NZ Manufacturer ISSN 1179-4992
Vol. 5 No. 1 February 2014 Copyright: NZ Manufacturer is copyright and may not be reproduced in whole or in part without the written permission of the publisher. Neither editorial opinions expressed, nor facts stated in the advertisements, are necessarily agreed to by the editor or publisher of NZ Manufacturer and, whilst all efforts are made to ensure accuracy, no responsibility will be taken by the publishers for inaccurate information, or for any consequences of reliance on this information. NZ Manufacturer welcomes your contributions which may not necessarily be used because of the philosophy of the publication.
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– Clayton Christensen, back cover of the book Seizing the White Space
High value widgets the way to go
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e’re back and it looks like being an economically bright and successful 2014. Remember at the end of 2013, economists were picking 3.5% GDP for New Zealand? Well that figure has just been updated with Westpac saying this week they thought the total more likely to be 4.2% GDP.
It makes sense and economists at the EIU –Economist’s Intelligence Unit – believes that Asia/Australasia (except Japan) will have GDP of 5.6% (and that China will have 7.2%). So our figures are at the right end of the market. The cyclical upswing in advanced economies will also be felt in the rest of the world. It will boost exports from emerging markets. Indeed, signs of improving trade flows were evident at the end of 2013. We’re in there too! So we keep on doing what we are doing well. The seasonally adjusted PMI for January was 56.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). The sector has now been in expansion for 16 consecutive months, with the last six months also averaging 56.2. We have our place in the business world, we are measured and don’t overstep the mark too far – well, only as far as dipping the toe in the water and staying away from financial trepidations which affect larger economies. We are subject to market forces, to financial meltdown like anyone else and we try to be sensible. Our key export industries – led by the large Fonterra – are highly respected and our smaller ones use their initiative and innovation to find their place in the marketplace – and do it well.
Doug Green
NZ Manufacturer February 2014
An organisation’s ability to learn, and translate that learning into action rapidly, is the ultimate competitive advantage. – Jack Welch
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BUSINESS NEWS
Survey finds our CEOs more positive than global peers
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ew Zealand CEOs are significantly more positive about the outlook for the global economy over the next 12 months than their global peers: this is one of the key findings from PwC’s Annual Global CEO Survey. The New Zealand supplement shows that 63 percent of New Zealand CEOs surveyed believe the global economy will improve in the next 12 months, compared to just 44 percent globally. Additionally, 89 percent were either somewhat or very confident of their revenue growth prospects in the coming twelve months. PwC New Zealand Chief Executive Officer Bruce Hassall notes that global mega trends will naturally have an impact on any growth opportunities. CEOs, both in New Zealand and globally, identified technological advances (New Zealand 91%),
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demographic changes (New Zealand 74%) and shifts in global power (New Zealand 49%) as the three trends most likely to impact their business over the next five years. “Together these trends will create many opportunities for innovation and growth, but they will also raise new challenges for traditional business models. Businesses without the ability to adapt and evolve will struggle in a world that is changing at such an unprecedented pace,” Mr Hassall says. This speed of change means CEOs are finding it increasingly difficult to commit to long-term planning horizons. While 77 percent of New Zealand CEOs who took part in the survey see five years as the ideal planning time horizon, most (43%) are currently working to a three-year plan. Another challenge identified by
Bruce Hassall
“Tomorrow’s businesses need to think beyond traditional stakeholders such as customers, staff and investors and bring communities and the Government on board with their growth aspirations,” Mr Hassall adds.
How to increase competition
he Productivity Commission has released its draft recommendations on how to increase competition and the use of information and communications technology (ICT) in New Zealand’s service industries. The 2nd interim report, now out for consultation, looks at ways to encourage consumers to put more competitive pressure on service suppliers, improve competition law, reduce barriers to international trade in services, raise the level of ICT skills in the workforce and increase the uptake of cloud computing. “Sharpening competition and
increasing the use of ICT could provide a much-needed boost to New Zealand’s services sector, from tourism to software design, and by extension the whole economy”, says Commission Chair Murray Sherwin. “Services make up nearly threequarters of New Zealand’s GDP and the price of services affects the cost of goods, including our exports. Service industries are critical to New Zealand’s international competitiveness, but they don’t perform as well as they do in Australia and the United Kingdom. “Competition drives innovation and gives consumers more choice,
Employers urged to take own counsel over pay rises
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New Zealand CEOs is the balance between innovation and regulation. Most CEOs recognise the need for innovation to keep up with changes in customer behaviours and demands but see changes to the regulatory environment as significant inhibitors to growth. Seventy one percent of New Zealand CEOs were either somewhat or very concerned about the threat of over regulation to their organisation. Mr Hassall says that with so much change happening, a key challenge for CEOs is how they bring people along with them. “We are seeing big changes in the stakeholder environment. Businesses recognise that society, as a whole, needs to feel positive about an organisation. This means getting the balance right between making money, contributing to sustainable business practices, and generally being a good corporate citizen.
mployers are advised to take their own counsel over any pay increases they may afford this year, and not listen to what Finance Minister Bill English thinks, the Employers and Manufacturers Association says. “Employers need to think very carefully about what they can afford to remain competitive,” said Lisa Goldsmith, EMA’s Remuneration and Benefits Consultant. “Circumstances vary enormously for individual businesses and any increases they can afford will differ. “Pay rates generally fluctuate
across industries and different types of positions. “The average increase in our National Wage and Salary Survey in 2012 was 2.1 per cent, and last year it was 1.9 per cent. Overall we expect this modest increase trend to continue. “Many businesses have been consolidating over the past few years but as better economic growth gets underway, businesses should focus on more skills training and sustainable, not rampant, growth. “For many people their job security is worth more than pay increases.”
better products and lower prices. Many businesses supply services to other firms, so giving consumers access to more information and improving competition law would make New Zealand firms more competitive on a world stage. “The Commission recommends measures to increase consumer pressure on competition, more use of market studies to examine competition issues, reducing barriers to overseas firms operating in New Zealand and reforming New Zealand’s approach to determining a misuse of market power in section 36 of the Commerce Act. “ICT is revolutionising the way that services operate. However, New Zealand has yet to experience the full productivity benefits of ICT, in part due to the lack of skilled ICT professionals and ICT-savvy managers, and the high initial cost of ICT services. “Streamlining the process for filling ICT jobs from overseas and helping ICT graduates to adapt to the workplace would increase the number of employees and managers with ICT skills. “Cloud computing has great potential to create a level playing field for New Zealand services firms by reducing the costs of setting up ICT services, but firms need encouragement to adopt cloud-based services.” The Commission is seeking feedback on the questions, findings and recommendations contained in the report by 7 March. The final report will be provided to referring Ministers by 30 April. www.nzmanufacturer.co.nz
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NZ Manufacturer February 2014
MANUFACTURING TECHNOLOGY
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– Ryan Freitas
Boeing may have found ultimate jet fuel
irline manufacturer Boeing claims to have identified a new renewable fuel that emits at least 50% less carbon dioxide than fossil fuel over its lifecycle. The company is working with the US Federal Aviation Administration to gain approval for its new ‘green diesel’ which could power aircraft, cutting the aviation industry’s carbon footprint significantly. Boeing researchers have found that green diesel, which is made from oils and fats, is chemically similar to today’s aviation biofuel. If approved, the fuel could be blended directly with traditional jet fuel. “Green diesel approval would be a major breakthrough in the availability of competitively-priced, sustainable aviation fuel,” said Dr. James Kinder, a technical fellow in Boeing Commercial Airplanes Propulsion Systems Division. “We’re collaborating with our industry partners and the aviation
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Your reputation is more important than your paycheck, and your integrity is worth more than your career.
community to move this innovative solution forward and reduce the industry’s reliance on fossil fuel.” “Green diesel approval would be a major breakthrough in the availability of competitively-priced, sustainable aviation fuel”. Significant green diesel production capacity already exists in the US, Europe and Singapore that could supply as much as 1% – about 600 million gallons – of global commercial jet fuel demand. The wholesale cost – about $3 a gallon with US government incentives – is competitive with petroleum jet fuel. Boeing, the FAA, engine
Green diesel approval would be a major breakthrough.
manufacturers, green diesel producers and others are now compiling a detailed research report that will be submitted to key stakeholders in the fuel approvals process. In 2011, Boeing worked with the aviation community to include a blend of up to 50% aviation biofuel in international jet fuel specifications. Biofuel approved for aviation must meet or exceed stringent jet fuel performance requirements.
“Boeing wants to establish new pathways for sustainable jet fuel, and this green diesel initiative is a groundbreaking step in that long journey,” added Julie Felgar, managing director of Boeing Commercial Airplanes Environmental Strategy and Integration. The green diesel can be used in any diesel engine. It is chemically different and a different product than the fuel known as ‘biodiesel’.
Autodesk completes acquisition of Delcam
utodesk, Inc. completed its acquisition of Delcam, one of the world’s leading suppliers of advanced computeraided manufacturing (CAM) software, on February 6th. Delcam will operate as a whollyowned, independently-operated subsidiary of Autodesk, with no significant changes planned for Delcam’s business. Autodesk, Inc. is a world leader in 3D design, engineering and entertainment software. Customers across the manufacturing, architecture, building, construction, and media and entertainment industries – including the last 18 Academy Award winners for Best Visual Effects – use Autodesk software to design, visualize and simulate their ideas. From design professionals, engineers and architects in all of the Fortune 100 companies to digital artists, students and hobbyists –
Autodesk software is helping people unlock their creativity and solve important challenges. Autodesk has more than 7,300 employees worldwide and is headquartered in San Rafael, California. Headquartered in Birmingham, UK, Delcam’s range of design, manufacturing and inspection software provides automated CADCAM solutions for a variety of industries, ranging from aerospace and automotive to toys and sports equipment. The company has more than 30 offices worldwide and approximately 700 employees. “Autodesk brings to Delcam increased financial strength, unparalleled expertise in design, and a long history of making technology accessible to broad audiences. Through sharing our technology and expertise, this transaction will transform industries and improve how the world is
Carl Bass, President and Chief Executive Officer of Autodesk (centre) with (left to right) Glenn McMinn, President, Delcam North America; Clive Martell, Chief Executive, Delcam; Steve Hobbs, Development Director, Delcam; and Bart Simpson, Commercial Director, Delcam. www.nzmanufacturer.co.nz
designed and made,” said Delcam’s Chief Executive, Clive Martell. “By maintaining the basic structure of Delcam’s business, Autodesk is reflecting its trust in, and respect for, Delcam’s solutions, leadership and organization. We are excited to come together and further the vision, development and implementation of technology for digital manufacturing.” “The acquisition of Delcam is an important step in Autodesk’s
continued expansion into manufacturing and fabrication and beyond our roots in design. Together with Delcam, we look forward to accelerating the development of a more comprehensive Digital Prototyping solution and delivering a better manufacturing experience,” said Buzz Kross, senior vice president for Design, Lifecycle and Simulation products. “We welcome the Delcam employees, customers, partners and community to Autodesk.”
Intercad acquires Solidtec Solutions
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ntercad Pty Ltd, the leading supplier of 3D solid modelling products and services across Australia and New Zealand, has acquired fellow 3D CAD specialist Solidtec Solutions. As part of the deal, Solidtec personnel will join Intercad to further increase the level of expertise at the company, which over the past three years has transitioned into a fullservice mechanical computer-aided engineering solutions provider. “We will merge the two businesses to support a larger range of services,” said Max Piper, Chief Executive Officer, Intercad Pty Ltd. “Established nearly 25 years ago, Intercad is the longeststanding 3D solid modelling specialist in the region, giving us a depth of industry knowledge that is evidenced in the range of services we offer and the breadth
of products we represent. Solidtec sales personnel will join Intercad as a result of the acquisition. Former Solidtec Chief Executive Officer Shane Preston said the sale will ultimately benefit both organisations – their personnel and the customers. “Manufacturing is facing significant headwinds, but it’s a resilient industry and companies are constantly looking to invest in services that increase productivity in a competitive global market,” said Piper. “Intercad is working on developing partnerships with organisations such as IC3D to further strengthen our ability to offer customers a more complete solution that meets their requirements and maximises their investment in SolidWorks, including products for steel fabrication and simple language translation.”
NZ Manufacturer February 2014
Man cannot discover new oceans unless he has the courage to lose sight of the shore. – Andre Gide
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MANUFACTURING TECHNOLOGY
First on-machine controller simplifies system architecture
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anufacturers and equipment builders are looking to simplify their machine architectures and reduce the system footprints. With the release of the Allen-Bradley Armor GuardLogix programmableautomation controller (PAC), Rockwell Automation now provides users with a high-performance, multi-disciplined control in a controller that can be installed directly on-machine. The Armor GuardLogix PAC joins a growing portfolio of On-Machine solutions from Rockwell Automation that move the industrial controls and hardware closer to the application or onto the machine, minimising the number of components in the cabinet. This reduces wiring time whilst helping increase uptime as maintenance and repair is made faster with pre-configured, quick connect systems and simplified wiring layouts. The Armor GuardLogix PAC is IP67, SIL 3, PL(e), CAT 4 rated with 4 MB of application-code storage space, with two full-featured EtherNet/IP device-level ring (DLR) capable connections.
The Armor GuardLogix PAC provides access to the controllermode switch, USB port, securedigital (SD) card and power-supply switch, along with 24V DC power pass-through to supply power to other On-Machine products. This feature allows power to be routed from one machine device or module to another, eliminating the need
“With this controller, manufacturers can tap the power of our information-enabled Integrated Architecture system in a simple-touse, but fully loaded on-machine controller,” said Geoff Sieron, Product Manager, GuardLogix Controllers, Rockwell Automation. “Additionally, as manufacturing-control systems evolve, our customers are replacing aging equipment with simplified systems. Quick-connect cabling greatly streamlines system wiring so the system is easier to install, troubleshoot and maintain. This can be especially crucial to machine and equipment builders looking to improve time-to-market, testing and commissioning.”
for a power supply for each device and simplifying the overall system architecture. Innovative mounting tabs can be rotated vertically or horizontally, giving users flexibility on where and how the product can be mounted. The controller is programmed in the Rockwell Software Studio 5000 design and engineering environment.
3D Printer Microfactory
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icrofactory combines additive and subtractive manufacturing, integrating machining and 3D printing into a safe, selfcleaning, networkable unit. The Microfactory 3D printer contains four printing heads on two separate heaters, plus a milling head. This allows it to print in four colors of the same material, or two colors of two different materials, on the same part. The milling component is capable of cutting and etching wood, plastic and some metals (with optional upgrade). Its user-friendly features are designed to bring more industrial capability to smaller
workshops. They include a vacuum port to remove all the debris created by cutting, an air filter, prominent emergency-stop button, covered belts and motors (to keep clothing from getting caught by moving parts) and a noise-reducing housing. The Microfactory 3D printer contains a full on-board computer, which gives it many unique capabilities. With its Internet connectivity, the Microfactory will allow users to watch the progress of jobs in real-time from a phone or tablet, start and stop jobs remotely, or network machines together for more efficient production.
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NZ Manufacturer February 2014
DESIGN
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Do not lose hold of your dreams or aspirations. For if you do, you may still exist but you have ceased to live.
The project start up
ow you have taken the decision to progress your project, it is time to think about further defining what you want to achieve. Let’s step back a bit and look at what prompted you to embark on this project.
What is the need? All ideas for making things come out of an immediate or a possible need. Applications for phones and I-pads could be seen as a possible need because we did not know we needed them until they were presented to us as a useful virtual tool. We in the manufacturing world are more concerned with real products rather than virtual products. These real products can be split up into two categories; products that are used by the consumer or equipment that helps us make consumer products. The main objective for consumer products is to help the consumer solve a problem. These also can be split up further into two categories; the actual product the consumer uses or the packaging it is in. What problem does your project solve? As I am a mechanical engineering designer I am going to concentrate in this article on some essential points when starting a project to make equipment. S
Making a choice Materials handling equipment is the most prevalent type of equipment needed when manufacturing real products. The type of equipment we need is decided by the rate of production and the flexibility required. Industrial robots have taken a big place in mass production facilities. This has enlarged the range of equipment from products moving systems, to systems that present the product to the robot gripper tool. As the price of industrial robots has come down, these can now also be considered for smaller production
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– Henry David Thoreau
runs, or for performing a series of complex precisions tasks. The pathway of using industrial robots is relatively new to us, thus we have to learn what the possibilities are. As well, the complexity of these robotic systems means that we need specialists. All of this can lead to budget blow-outs if you do this without good support and knowledge.
Think again Before going down the path of using industrial robots it pays to look at the alternatives. You may find that some designers want to use high tech systems as it shifts the design problem to the programmer. Resist this until the possibilities of finding a simple conventional possibility are exhausted. There are designers who see it as a challenge to solve the problem as themselves, and there are designers who avoid difficulties and move the problem to be solved by electronic means. Spending a bit more time on exploring the possibilities at the beginning of the design stage can avoid huge costs later. Some designers give up easily and others are determined to find the best possible solution. The best possible solution is usually found by clearly defining the need and the parameters within to solve this problem.
Setting priorities The most common requirement for designing any equipment is to reduce labour costs; this is followed by reducing running costs, and maintenance and capital investment costs. Your accountant wants to see a good ROI of course, but still, you need to look at the bigger picture, the total cost of running the equipment over its useful life. The running costs not only include the power, air and regular maintenance, but also any downtime due to machine breakdown, product jamming the machine, or product damage by the machine. The speed which these problems can be fixed is an important factor. A machine where the designers have taken into account ease of maintenance and replacing of parts will reduce the downtime. Reliability of the system can also be a defining factor. For example a cam operated system is more reliable than using air cylinders and their controls. Whether the equipment can fit into the space available, or even can be easily placed in that space needs careful consideration. This sounds basic commonsense, but I have seen many very expensive mistakes made
– Aaldert Verplanke,
Mechanical engineering design, Manufacturing Design Services aaldert@mandesign.co.nz www.mandesign.co.nz because of such a simple oversight. A good project manager will often visit the location himself to ensure that the information he has been given is correct. Power supply, waste management, and environmental impact can also have a huge impact on the final cost and a designer needs to have the full story on this too. Other questions to consider when designing the machine include: What will happen if there is a power cut, or an emergency stop; what needs to happen to start up again; what has to happen to save the product or the equipment from damage at the start up; what happens if there is a spill of the product that is going through the machine.
Make sure you have your feet on the ground I can go on for many pages about all these issues; however the point I am making is that you need to look
very closely at your requirements at the start of a project. Mistakes created by oversight in the early stages are very expensive to fix. Make a checklist of everything you can think of, and divide this checklist into more checklists! Ensure you have someone responsible to check if all the requirements are met. If it is a small project, a project manager and a designer may be all that is needed. Keep the project team as small as possible, but make sure you have people who can think outside the box; and know when to call in other experts. I advise against the designer and the project manager being the same person, as these functions require a different skill set and have different priorities. A designer should put all their effort into making a good design and a project manager into getting things done. If you can, manage the project yourself and find a designer to work closely with.
NZ Manufacturer February 2014
The only way a strategy can get implemented is if we dedicate resources to it. – Clayton Christensen
MANUFACTURING TECHNOLOGY
FeatureCAM 2014 to be demonstrated
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AM is always a draw card, and Delcam will have something special says Robert Simunic. “Delcam will demonstrate the newest 2014 version of its FeatureCAM feature-based CAM. This provides support for milling and drilling with right-angle heads, and one-stop programming of multiple roughing operations using Delcam’s unique Vortex area-clearance strategy. Other enhancements include better control of Z-level roughing, and improvements to Wire EDM and chamfering. “Right-angle heads allow internal pockets to be milled and internal
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Hose reels on show
holes to be drilled that would be “ eCoila Hose Reels has long been established in New inaccessible, and so impossible to Zealand, but this is our first produce, using a conventional head. time at EMEX,” says Leonie They are now available as an option on an increasing range of machines, Waldron. “We’re looking forward including a wide variety of mill-turn to the opportunity to talk directly to engineers, as well as to the equipment. FeatureCAM 2014 R2 is the friendly local atmosphere. “ReCoila is presenting a first release to have the ability to programme and simulate both milling and drilling with right-angle heads. These new strategies will allow users to take full advantage of the flexibility of machines with this option. These are just a few of the advantages of the new release, and we’ll be happy to demonstrate them all at EMEX.”
comprehensive cross-section of our hose reels, which range from simple workshop models to fully customised heavy duty reels. Exhibiting at EMEX presents a fantastic opportunity for us to have quality face to face discussions with engineers as well as catching up with our existing customers.”
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NZ Manufacturer February 2014
COMMENT
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– C.S. Lewis
Tradable sector needs policy focus
e are at a time where, on the surface, our economy looks to be doing well. Most of the headline numbers would indicate this, the domestic economy is growing, boosted by the Christchurch rebuild and the agriculture and primary processing sectors have benefitted from strong commodity prices. While this is all true, a deeper look reveals worrying structural imbalances in our economy. Currently our policy settings have the effect of deflating the tradable sector, while favouring domestic, non-tradable activity. This leads to falling investment and employment in the tradable sector and so increasing pressure on our balance of payments. The tradable sector supports activity in the non-traded economy, and over time, this shrinking of the tradable sector compared to the nontradable will have lasting damaging effects on our economy. The tradable sector is the biggest driver of productivity in any economy, and as ours shrinks, how can we really expect our productivity to grow? Policy response to inflation is the key, predicted inflation outside the target band (1%-3% in the medium term) triggers a response from the Reserve Bank of New Zealand (RBNZ), lifting the Official Cash Rate (OCR) to address domestic inflation, but in the process deflating the tradable sector via the exchange rate mechanism. The non-traded sector shrugs of changes in debt servicing, the result is that inflation in the nontradable sector barely responds to the change but the massive impact on the traded sector brings the headline result into target band. Not much hope of economic rebalancing in this policy framework.
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You are never too old to set another goal or to dream a new dream.
By John Walley
New Zealand Manufacturers and Exporters Association Chief Executive
What does this mean for our policy settings in New Zealand? To begin with, it is clear that our simple one target, one lever process of using the OCR to control inflation is not enough. It is too indiscriminate, and cannot tackle domestic inflation without damage to the traded sector. The RBNZ needs more, better targeted tools that can deal with non-traded sector inflation and support exporting
activity and generally growth in the traded sector. The Reserve Bank Act could be updated to accommodate the world of today and move beyond inflation targeting and include other factors such as employment and exchange rate, as well as placing a greater reliance on existing macro prudential intervention and the deployment of other tools. For example capital management and
managers. How are we doing? What could we do better? What goals are we not meeting? What more could we be doing? Second, the boss should hire a skilled independent researcher to look for things that are upsetting the client. In almost every case, I have unearthed at least one issue that needs urgent action before the client harbours a nasty grudge. Often research findings are truly shocking. Every issue that has upset a client during a contract must be dealt with in the repeat contract bid proposal. The incumbent must show beyond doubt that the problem has been dealt with so that it can never recur. Every time a current contractor
puts an improvement in place, he scores a good mark. Good marks are what lead to winning a repeat contract bid. Any tender bid that doesn’t drip with good marks is a waste of space, hinting that the boss is off playing golf. The ultimate contract for Favoured Supplier Status is way out of reach for a contractor whose boss is out of touch, meaning asleep on the job. Bottom Line Winning proposal bids for repeat contracts needs a Best Practice process that involves the boss closely throughout both the current contract cycle and the content of the renewal bid document. – Tom Evison
debt to income limits, could all be part of the RBNZ’s approach and be included in all forward guidance. The RBNZ’s introduction of Loan to Value Ratio (LVR) requirements in addition to other prudential interventions are recognition that interest rates alone will not fix the inflation problem. We have already seen some indication that the LVR policy is impacting house price inflation, taking some upward pressure off interest rates. It is clear that the OCRs effect on domestic inflation is ponderous, blunt and limited, it is equally clear that the OCR is highly effective at deflating the traded sector. All up the impact is to kill traded sector investment and growth; any talk of rebalancing the economy is dreaming while current policies are in place. The two graphs presented here underscore that position.
Repeat contracts depend on the boss
inning proposal bids for repeat contracts is a prime duty of the managing director. A current contractor is much more likely to win again, where the boss is fully aware of critical issues and acting on them. Newcomers don’t win renewal contracts: incumbents lose them. Right from the time a new contract starts running, the boss has a vital role to play in seeing that key performance indicators are all getting a bright green light. A boss has two ways to ensure a contract is running to the full satisfaction of client staff. First he or she should liaise every month or so with the client CEO and senior client www.nzmanufacturer.co.nz
NZ Manufacturer February 2014
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DEVELOPMENTS
Success is not final, failure is not fatal: it is the courage to continue that counts. – Winston Churchill
Manufacturing sector to benefit from new funding option
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ew Zealand manufacturing entrepreneurs and small and medium-sized business owners will soon be able to access funding in exchange for equity for the first time through revolutionary online equity crowdfunding platform, Snowball Effect. Equity crowdfunding provides entrepreneurs and small business owners with an opportunity to pitch their business ideas and growth plans to the public via a website portal, expanding the pool of potential investors while reducing the cost and complexity associated with raising funds. Snowball Effect’s portal – www. snowballeffect.co.nz – is set to launch in April. Manufacturing business owners will be able to seek funding for everything from start-up concepts,
to investment in manufacturing equipment, work space, new product development or market expansion. Snowball Effect’s company Directors, Simeon Burnett, Francis Reid and Richard Allen, have over 25 years combined experience in international business and trade, corporate finance, strategy and valuation. Former corporate lawyer, Josh Daniell has been appointed Business Development Manager and will manage operations day-to-day. Mr Burnett says Snowball Effect will bring together every day Kiwi investors with great Kiwi businesses wanting funding that doesn’t involve increased debt, a costly Initial Public Offering or ceding control of their company by relying on a limited number and class of investors.
“Our vision is a New Zealand economy fuelled by emerging businesses backed by everyday Kiwi investors,” he says. “The country’s economic engine room is small to medium-sized enterprises (SME’s) and there are thousands of them with big vision who can’t take the next step on the growth ladder because the banks won’t lend, and other sources of capital don’t fit or are cost prohibitive. There are also thousands of New Zealanders with innovative ideas that can’t get them off the ground because raising startup capital is typically limited to loans from friends and family. “On the other side, tens of thousands of proud Kiwi investors or would-be investors would love to take a stake in one of the most dynamic sectors in the economy, but are currently unable to do so, particularly if they only have a
small amount of money that they’re willing to invest.” Another of Snowball Effect’s founding Directors, Richard Allen says Snowball Effect has the potential to transform the investment and SME sectors. “While we will be complementary to other funding channels, we believe the concept democratisesinvestment by giving everyday people greater choice about how and where they invest,” says Allen. “Italso democratises entrepreneurism and business growth by giving company owners more options. With more options comes greater control.” Mr Allen says they will work with businesses to ensure they’re clearly articulating the investor value proposition to maximise their chances of successfully raising capital, while minimising the cost and complexity of the fundraising process.
AGGAT company signs Record prize pool on offer technology development deal
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ERA member and a participant in the Above Ground Geothermal and Allied Technology (AGGAT) programme, BOP Gearcutters Ltd has entered into a development agreement with Sydney-based company, Smith Innovation Technology and Science (SITAS) Pty Ltd. The agreement was sealed with a visit to New Zealand by company Directors Errol Smith and Ken Smith. Smith Innovation Technology and Science is an IP development company who are partnering with BOP Gearcutters in the development of an innovative expander technology with potential applications in geothermal and waste heat markets. The first products are expected to be ready for testing in a few months and a scale-up programme is currently under development. Bill Ross, General Manager of BOP Gearcutters, said that without
the AGGAT programme, they would not have felt confident in entering what for them is a new area and would have been unlikely to have connected with SITAS. Errol Smith said, “We have been looking for a competent partner and it is obvious that BOP Gearcutters has all the capability to give us the confidence to enter into this agreement and to take this technology forward.” HERA Industry Development General Manager Nick Inskip said that having the AGGAT science base in place was critically important for companies like BOP Gearcutters and SITAS since it underpinned the work they were doing. BOP Gearcutters have a long tradition of R&D with their latest product, electric-powered load binders for the marine industry, already in the market. “You might say that R&D is in our DNA,” said Bill Ross.
From left: Bill Ross of BOP Gearcutters, and Errol and Ken Smith of SITAS
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aikato’s entrepreneurship hub, SODA Inc., has announced a record prize pool on offer to entrepreneurs who are able to build a business in 48 hours. The Innes48 Hour Business Startup Competition, organised by SODA and hosted by Wintec, will take place on 2-4 May. Competition entrants team-up to design and launch a start-up business within just two days. A record $60,000 is being raised for the popular competition, much of which will be provided as prizes and equity contribution toward winners’ business development costs. Communication manager Rachel Adams said the competition has grown rapidly from the $5,000 cash sponsorship, 15 mentors and 48 contestants it attracted when the competition launched in 2012. “This year we aim to select the top 15 teams, attract 35 mentors and raise up to $60,000.
“Already we have raised $35,000 and have over 10 mentors signed up. So we are really confident we will hit our target,” Rachel said. SODA has also landed Hamiltonbased software development company NetValue Ltd as its $10,000 naming rights sponsor. SODA’s acting CEO Petr Adamek says he is excited to see a growing community of companies prepared to support SODA’s key entrepreneurship event of the year. “Contributors already committed include great brands, such as ASB, 2degrees, Stainless Design, Deloitte, MEA Mobile, Enterprise Angels and LearningWorks Ltd,” he said. As well as sponsors, Innes48 is looking for up to 35 experienced mentors to help guide and advise competing teams through the process of developing a scalable business over the weekend. Registrations for Innes48 mentors and teams are now open at www. startup48.org. www.nzmanufacturer.co.nz
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NZ Manufacturer February 2014
THE FUTURE OF MANUFACTURING
Go confidently in the direction of your dreams. Live the life you have imagined. – Henry David Thoreau
3D-printed material stronger than steel, less dense than water
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esearchers at the Karlsruhe Institute of Technology (KIT) has leveraged a new type of nanoscale 3D printing to push the limits of material science forward. Using a process developed by a German company called Nanoscribe, Jens Bauer and his team developed a new material that is less dense than water, but as strong as some forms of steel. This is the first evidence that these theorized materials can actually exist. Every material is characterised by its range of strength and density. In most instances, things get stronger as the become more dense, which has led to materials scientists searching for ways to buck the trend. Something that is very strong and not very dense is great for building anything where overall weight is a factor. In the graph below, the middle density line at 1000kg/ m^3 is water. So the best material designed by Bauer and colleagues is toward the upper left, indicated by the pink dots. Advanced materials are often made with composites or plastic, but can also rely on careful structural design. To design this new material, Bauer looked at the 3-dimensional structure of substances that are less dense than water, but still fairly strong, like wood and bone. The KIT material is inspired by those delicate structures produced in nature. Nanoscribe’s technology works by illuminating a drop of viscous polymer with a laser in a precise pattern. The points in the material hit by the laser solidify and the excess can be washed off. The resulting 3D structure is then coated with a layer of aluminium oxide for
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added strength. This helps refine ideas about how to design new materials, but it isn’t practical on its
own. The Nanoscribe process is currently only able to produce
objects under 100 micrometers in size, which structures around a millimetre coming later.
3D printing of car sized metal objects
ne of the biggest possible economic impacts of 3D printing to the U.S. economy is the fact that it may eventually allow corporations to bring jobs back onshore from China. The United States outsources a large number of jobs over to Asia as a way to cut labor costs. 3D printing and robotics promises to change some of this, as companies can utilize industrial scale 3D printers and automation to manufacture parts for their products, cheaper than even the labor force in China can produce them. www.nzmanufacturer.co.nz
That’s if, of course China lags behind in their adoption of these technologies. It appears, however that China is investing heavily in 3D printing, just like those in the U.S. and Europe. Their corporate and government leaders clearly can identify an emerging technology and its possible economic impact on the future of China. In fact, back in June, China announced agigantic 3D printer, which they claimed was the world’s largest at the time, with a 1.8 m build diameter. Basically the thing could print out a nice sized
bathroom vanity if you wanted it to. This isn’t where it ends though. 1.8 meters is nothing compared to what China has done since, and plans to do within the next month or so. Southern Fan Co. (As Translated from Chinese), a company also located in China, announced in November their plans to develop what would turn out to be, by far the largest 3D printer yet. The printer, once complete, sometime this month, according to past releases by the company, will be able to print out
metal objects approximately 6 meters, or 18 feet in diameter. Yes, if the printer works as it’s supposed to, the company will be able to print out the entire frame of just about any four wheeled automobile on Earth. The implications for such a development would be huge for the company, but also for China, who in the last 12 months has really made it a priority to develop their laser sintering technologies. There are already several large scale industrial 3D printers in China.
NZ Manufacturer February 2014
Innovation is the central issue in economic prosperity. – Michael Porter
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THE FUTURE OF MANUFACTURING
The realisation of 3D printed houses
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he University of Southern California’s Behrokh Khoshnevis has outlined how a novel extruder mechanism combined with robotic machines could efficiently print habitats. Through a great deal of trial and error, Prof. Khoshnevis was able to make a printhead that can extrude wet cement in such a way that, thanks to a trowel fixed to the head and a special hardener, the cement is able to keep its form as each successive layer is printed. As he joked, to the delight of architects, builders, and manufacturing professionals in the audience, “maintaining the viscosity of concrete is no trivial manner.” Using this method, the professor has created walls that are six feet high, with layers that are 6 inches high and 4 inches thick, and he believes that it can be expanded to whole buildings, saying that, with Contour Crafting, it’s possible to construct the entire structure of a 2,000 square foot house (floors, walls, and roof) in less than twenty hours. The 3D printer, mounted onto a gantry frame and weighing about 500 lbs, could be brought to a construction site, where it would contour craft the house either like a giant RepRap, with the ground as the build platform or, possibly, climbing up the house[1], one layer at a time, and returning back to the ground upon completion of a job. He also suggested placing the printer arms on rails so that they could print one house and slide on down the line to construct another, making it possible to print whole neighbourhoods quickly.
The possibility that the printer could ascend the walls of its construction
This technique, and others that the Khoshnevis research team is working on, would present a number of solutions to problems facing the modern world. Alongside the JPL and ESA projects aimed at printing habitats on the Moon and Mars, Khoshnevis has come up with a proposal for laser sintering moondust – lacking the water necessary to extrude concrete – to form a landing station for future spacecraft, complete with regolith blast shield capable of deflecting the debris of an incoming ship. He’s even simulated the process on Earth, sintering rock by using sulfur as a binder. Additionally, the professor believes that his technology would make the construction of efficient buildings so cheap and efficient that we could print low-income housing
for people in impoverished areas the world over. Because current construction techniques are, as Khoshnevis puts it and as Lucas Mearian cites it, “wasteful and
emission causing and corruption prone. And, the cost is always over budget,” 3D printing homes would save time, as well as reduce waste and human error. The process could also save lives, as Mearian explains that working construction is “the most hazardous job in the world, with 400,000 people injured 6,000 to 10,000 killed in construction accidents every year in the U.S. alone.” In the 3D printing process, steel reinforced cement can be used, but, as the professor points out, specific printed geometries will yield more stability than the traditional cubes we often find ourselves in in the Western world. Flat walls lack the stability of the curves made possible with contour crafting. With the ability to print, quickly and affordably, architecturally sound buildings, Prof. Khoshnevis believes that we could have prevented the loss of life brought about by natural disasters, such as the 40,000 people lost in an earthquake in his native Iran. The team is already focused on creating complex extruders and robotic arms that give the impression of a hybrid manufacturing process, with arms that can eject and shape concrete at the same that other arms insert plumbing, wiring, insulation and the like. What’s missing from the proposed toolbox, in my opinion, is a subtractive manufacturing process. Not milling, but the ERO Concrete Recycling Robot, a proposed robot that shoots high-pressured water at concrete, causing it to break apart, and then collects it for reuse. Combined with Prof. Khoshnevis’s concepts, it would be possible to erase old structures, or portions of old structures, and reconstruct them on the spot to yield more sustainable, more useful buildings suited to the needs of our modern world.
– Michael Molitch-Hou,
founder of The Reality Institute.
www.nzmanufacturer.co.nz
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NZ Manufacturer February 2014
EXPORT NEWS Asia in the driving seat W
Don’t worry about people stealing your design work, worry about when they stop.
ith the October release of the latest semi-annual IMF World Economic Outlook, the evidence for Asia’s global ascendancy continues to mount. The IMF data indicate a continued rise in the proportion of the global GDP accounted for by Asia. The Asian region almost doubles in importance in the 40-year period to 2020, rising from 18.3 percent of the global economy in 1980 to 30.8 percent in 2020. Meanwhile, Europe shrinks in relative size from 27.6 percent of global GDP to 18.4 percent; North America, Japan and the Middle East and Africa all register sharp declines. Globally, the growth gap continues to widen — in favour of the emerging markets (see Figure 1).
trillion. In addition, Asian emerging markets are less dependent on the US economy and more integrated with other emerging markets. Currencies are no longer pegged to the greenback. What does it mean for sector opportunities? Service industries Following in the path of the developed economies in emerging Asia, agriculture is giving way to industry, and industry is being supplanted by services. Historically, economies evolve from agriculture to industrial activity (in Asia export-led manufacturing). With Asia now the factory of the world — ASEAN benefiting from China’s labour-intensive production line cast offs — this phase is either complete or well underway. Rising
will be opportunities to improve the delivery of these services. Infrastructure development Across the region, there is a huge need to improve infrastructure in the years to come with poor infrastructure hindering both the manufacturing and service sectors. According to the Asian Development Bank (ADB), developing Asia needs to invest some US$8 trillion in physical infrastructure between 2010 and 2020 in order to maintain current growth rates. Key areas for improvement include: • ICT (the Philippines has leveraged ICT to compensate for underperforming manufacturing) • transportation (ports, airports, rail, etc)
– Jeffrey Zeldman
By Shaun Conroy, NZTE Regional Director in Singapore
to Asia’s GDP growth retreats — relative to consumption — a virtuous cycle of factors will support the consumer boom: rapidly rising real incomes and minimum wage rates, a demographic dividend due to a relatively youthful population and still rising work age group, urbanisation’s spread to second and third tier cities, the strengthening of local currencies, and lower saving rates as Asian eschew the dynastic saving model for the West’s less altruistic life cycle savings approach. If the middle class includes everyone living in households with daily per capita incomes ranging from US$10 to US$100 a day (in PPP terms), Asia accounts for around 28 percent of the world’s middle class today (Homi Kharas, OECD 2010). By 2020, that share could double, and by 2030, two-thirds of the world’s middle class will be in Asia. When it comes to spending, the same study estimated that currently, Asia’s middle class accounts for only 23 percent of total consumer spending. By 2020 it will be 42 percent and by 2030 it will swell further to 54 percent, five times more than that of North America.
Sources: IMF World Economic Outlook Database, October 2013; Intercedent projections Note: GDP at current US$ prices *Other Asia includes Korea, Taiwan, Hong Kong, Mongolia, Sri Lanka, Pakistan, Bangladesh, Nepal In the period from 1980 to 2020, ASEAN as a grouping is projected to grow its share of global GDP, nearly doubling its percentage share in the 40-year period (IMF, Oct 2013). Among the world’s major economies and regional blocs, this achievement is second only to that of China. The implication is straightforward: international marketers will reallocate resources to address the opportunity such that global sales by region are more closely aligned with global GDP by region. This creates both and opportunity and a threat for New Zealand exporters. The economic conditions facing Asia today are quite different from those at the time of the 1997-1998 Asian Financial Crisis: Asia’s foreign debt has been cut from 35 percent of GDP in 2008 to 23 percent in 2013. The cost of servicing that international debt is much lower, and the value of regional foreign exchange reserves has increased tenfold to US$5.8 www.nzmanufacturer.co.nz
incomes and rapid urbanisation are boosting demand for services. As manufacturing wage costs rise and labour intensity declines, Asia will look more to services to create jobs for the millions who join the workforce every year. The service sector’s share of the economy and employment will thus rise as countries restructure. High growth is giving rise to a large, expanding middle class and these newly affluent urbanites will demand an array of services in areas such as: • education and training • agri-tech • health care • finance and insurance • travel and tourism • entertainment and recreation. Many of these sectors play directly to New Zealand’s service export strengths. In addition, because service productivity is still lacklustre in many instances, there
• energy • green urban development. While some Asian countries enjoy access to ICT comparable with that of developed countries, lowerincome economies in particular still suffer limited access. Greater investment is needed to address ICT infrastructure gaps in areas such as mobile broadband technology and related innovations. Consumption crescendo Asian consumption is at a turning point. The roughly 3.5 billion consumers in emerging Asia — more than about half of all humanity — still account for less than 30 percent of global GDP. In China, the most populous country, consumption is 35 percent of GDP, among the lowest in the world (65 percent in the US). Propelled by rapid urbanisation and the rise of its middle class, Asia is set to be the world’s consumption engine. As investment as a contributor
The overall proportion of disposable income spent on food and other essential items will decline and aspirational spending on international brands, jewellery, cars and so on, will rise. Nonetheless, food price rises, and changing dietary habits will lift spending on food. Meat is on the menu. The FAO has predicted that global meat consumption will rise to 460 million tonnes in 2050, an increase of 65 percent in a period of 40 years. Meat consumption is growing the fastest in Asia and the potential for higher demand is huge due to relatively low per capita meat consumption. What does this mean for New Zealand? Within the context of the Government’s Business Growth Agenda to raise exports from 30
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NZ Manufacturer February 2014
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AVIATION A350 XWB Singapore Airshow star
To accomplish great things, we must not only act, but also dream; not only plan, but also believe. – Anatole France
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f all the aircraft on display at the recent Singapore Airshow, the brand new, fuelefficient Airbus A350 XWB dominated attention. Billed as the new generation widebodied jetliner and seen as a direct competitor to Boeing’s Dreamliner, the A350, apart from drawing crowds, took part in aerial displays and opened its doors to select trade visitors. Inside the 40,000 square meters of airshow exhibition space, the plane’s maker, Airbus, also grabbed the limelight, announcing the first big deal of this biennial aerospace and defense trade show -- the firm sale of 63 A320 Family single aisle aircraft to low cost Vietnamese carrierVietJetAir. Delivery is scheduled to start later this year. VietJetAir will also lease a further seven A320 aircraft and has purchase options for another 30. The $6.4 billion deal is a significant expansion for the privately-owned low-cost airline, which was only founded in 2011. “The A320 has proven to be extremely efficient in service with VietJetAir and is a favorite with our passengers,” said VietJetAir’s Managing Director Luu Duc Khanh. The centre of world demand VietJetAir is typical of the market. It’s a low cost carrier, numbers of which are growing rapidly across Asia Pacific, fueling demand for single aisle planes. Airbus predicts in the next 20 years the Asia-Pacific region will need almost 7,000 deliveries of single aisle aircraft, representing over a third of the world’s total. “All our products are in the region in significant numbers, and we continue to dominate sales in this region because we have the aircraft Asia-Pacific airlines need,” says Airbus Chief Operating Officer Customers, John Leahy. Arch rival Boeing was more circumspect about the prospect of being able to announce any big deals
percent to 40 percent of GDP, New Zealand needs to raise its export performance not just in terms of volume of trade but also value. If we sit back and ride the wave of population and consumption growth in Asia we run the risk of being locked into another cycle of predominantly commodity-driven export growth. If we look back in 10 years, at 7 percent annual compound growth and a doubling of export trade with Asia we may congratulate ourselves, but we will have missed the value curve and left money on the table.
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out of this airshow. But the Vice President of Marketing for Boeing Commercial Planes, Randy Tinseth, says the exhibition is just as much about bonding with customers. “The Asia-Pacific market in terms of demand is about 35% of the world demand so it’s incredibly important and we’re delivering more airplanes than anyone else in the market here, so we do have strength, there’s no question,” Tinseth says. The world’s two largest airplane manufacturers have spent many long hours poring over predictions for growth in Asia-Pacific and both have come up with mind boggling forecasts. “The economy grows, incomes going up, and incomes going up means more people travel. And it’s
12,820 new aircraft needed in Asia-Pacific in next two decades.
really pretty staggering. If you think about the Asia-Pacific region, if you look out the next five to ten years, each year 100 million people will travel in terms of growth,” Tinseth says. Airbus is predicting the region’s airlines will take delivery of some 10,940 new passenger and cargo aircraft between now and 2032. The figure from Boeing differs slightly, with estimates 12,820 new aircraft will be needed in AsiaPacific within the next two decades, a market Tinseth values at $1.9 trillion dollars. “This is the world’s largest market for single aisle airplanes. It’s the largest market for wide body [twin aisle] airplanes, it’s the largest market for big airplanes like the 747, and it’s the biggest market for freighters so the center of aviation is here, that’s why we’re here.” Tinseth says 36% of the world’s new airplane deliveries over the next 20 years will be in Asia and nearly half the world’s air traffic growth will be driven by travel to
and from the region. BATTLEGROUND As to who currently has the upper hand in Asia-Pacific, Airbus says in 2013 it won 80% of all new business in the region. But it’s a more level playing field in terms of actual deliveries, with Airbus delivering 331 aircraft into Asia Pacific last year, representing 51% of all new carriers entering service here. Airbus says it’s already received 814 orders for its A350 XWB. Thirty percent of orders have come from Asian airlines including Hong Kong’s Cathay Pacific and Singapore Airlines. Airbus claims its current AsiaPacific order backlog is 1,740. Boeing says its order backlog in the region is around 1,000 planes. On the single aisle side, Boeing’s main Asia-based customer is Indonesia’s Lion Air. The airplane maker has long dominated the wide body market, with customers including All Nippon Airways, Japan Airlines, Cathay Pacific, Singapore Airlines and some Chinese airlines.
New Zealand has many advantages in this region that makes trading easier than our competitors in Europe or the US. • Geographic proximity – most markets are accessible within 1-2 plane rides and 12 hours of travel or less. • Political closeness – New Zealand is generally accepted as a trusted partner and not an agent with independent political agendas. We are often seen as having technology and governance structures of merit and use to trade partners. • Time zone efficiency – business
can be transacted in New Zealand time zones. While obvious, these factors significantly reduce the cost of doing business and present advantages to our SME’s wishing to export to Asia. The looming advent of the Trans Pacific Partnership (TPP) free trade agreement will see 50 percent of the world’s trade covered in one free trade agreement. The agreement will reduce tariffs and enable simpler cross boarder transfer of goods. This agreement will deliver significant opportunities to New Zealand Exporters, but it will also open them
up to new competitors. The winners in this competition will be companies that evolve their business models from exporters to in-market players. Companies that import, process, value-add and market to their customers. They become in effect supply chain managers that source in the lowest cost market, process in the lowest cost market and sell in the highest cost market taking advantage of efficiencies in freight logistics, labour and tax while optimising their business to take advantage of regional free trade agreements. www.nzmanufacturer.co.nz
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NZ Manufacturer February 2014
PRODUCT NEWS
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Crystallise your goals. Make a plan for achieving them and set yourself a deadline. Then, with supreme confidence, determination and disregard for obstacles and other people’s criticisms, carry out your plan. – Paul J. Meyer
Calibration system keeps Advanced technologies at AOG 2014 smart grids running H
oday’s smart grids rely on equipment called phasor measurement units (PMUs) to deliver real-time, mission critical data on the voltage, current, frequency, and phase within the distribution smart grid. For the smart grid system to work reliably, PMUs must be calibrated so that their data is consistent, accurate and credible, and so that models from different manufacturers are inter-operable. NIST, The National Institute of Standards and Technology, felt so strongly about the need for a PMU calibrator that it awarded Fluke a development grant in 2010 to get the project underway. The resulting Fluke Calibration 6135A/PMUCAL Phasor Measurement Unit Calibration System is the only automated and traceable PMU calibration system available today. It fills an essential need for PMU designers and manufacturers, national metrology institutes, third party calibration houses and electrical utilities. The 6135A/PMUCAL is an integrated system of six components that completes the approximately 600 tests that certify a PMU configuration meets the latest performance
standards of the IEEE Standard for Synchrophasor Measurements for Power Systems (IEEE C37.118.1:2011 and IEEE C37.242). The system completes the tests in six-to-12 hours versus two-to-six weeks with manual test methods. Because it’s an automated system even non-experts can start using it quickly to perform a complete complement of required tests. The system, which is mounted in a 19-inch rack with an integrated test connection panel, includes a server PC, GPS receiver, system timing unit and three-phase 6135A Electrical Power Standard. It also includes calibration software that lets users create and store personality profiles for the PMUs tested frequently as well as run full certification tests and a wide range of automated and interactive tests. The test system architecture lets a user-provided client PC access the test system over the Internet from anywhere in the world. System accuracy yields a test accuracy ratio of 10:1 against the 118.1 PMU specifications. For more information about the role of PMUs in the smart grid, read the Fluke whitepaper: “Phasor measurement units gain credibility through improved test and calibration standards.”
Work lamp – bright, economical and reliable
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ARVA has introduced an economical and reliable L.E.D work lamp to the New Zealand market that delivers a much improved, smooth and even spread of bright white light compared to traditional halogen alternatives. The model 72425, 9-33 Volt L.E.D work lamp’s flood beam is ideal for recreational, four wheel drive and utility applications due to its tough design, bright light output and multi-voltage operation. In addition, the lamp offers a low current draw of 0.8A at 12V reducing battery drain, making it ideal for use when the vehicle’s engine is switched off without the risk of draining the battery – perfect for camping or setting up at night time or allowing a shift worker to spend more time on a task in the dark. The lamp can easily be added to an existing circuit, such as reverse lamp circuit, since the minimal current draw does not require wiring to be upgraded. The neat and modern looking www.nzmanufacturer.co.nz
work lamp is very slim at just 39mm deep. Its compact design makes it easy to mount on utility vehicles, rear bars, spare wheel carriers and to the rear of semi-trailer trucks. The inclusion of stainless steel mounting hardware prevents rust and corrosion, ensuring long mechanical life in all weather conditions. For added protection, the new L.E.D work lamp is fully sealed (IP66) and features a pre-wired, die-cast aluminium housing, while the lens is constructed from virtually unbreakable hard-coated polycarbonate. For further peace of mind, the lamp is covered by NARVA’s five year L.E.D warranty.
ydratight will exhibit technologies at AOG 2014 that respond to the challenges of environmental security and maximising uptime by helping mining, energy and oil and gas companies achieve leak-free bolted joints and connections. The company – which functions internationally via a network of 35 strategic locations – will bring to Australasia’s biggest annual oil and gas exhibition in Perth from February 21 a range of technologies and services proven in partnership with some of the world’s leading oil, gas, energy and industrial organisations. Technologies available throughout Australasia and the Asia Pacific on show at Stand C2 will include: • Subsea mechanical connectors with a 100 per cent leak-free in service record. • High-strength stainless steel lightweight hydraulic torque wrenches proven to perform even in the harshest environments. • Topside and subsea clamshell connectors with low-profile design, making them ideal for operation within tight spaces. • A family of high performance
tensioners, which the company says represent a giant leap in the specialist field of bolt tensioning technology. Hydratight’s Mechanical Connectors (formerly known as MORGRIP mechanical connectors) are used topside, onshore and subsea for pipeline tie-in and spool repair. The high performance products are designed to be simple and reliable to install, with features including “hands-clear” activation and external pressure test.
Olympus NDT instrumentation at AOG 2014
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new feature at the Australasian Oil and Gas Exhibition and Conference (AOG) will be the Non-destructive Testing & Condition Monitoring Zone. AOG is the Australia’s largest oil and gas exhibition and the 2014 event will be held at the Perth Conference and Exhibition Centre from the 19th to the 21st of February. The specialised industryfocused zone at the exhibition is being sponsored by the Australian Institute of Non-destructive Testing (AINDT). NDT is any analysis technique used to evaluate the properties of materials or components without causing damage nor permanently alter the article being inspected. NDT can save both money and time in product evaluation, troubleshooting, and research. Olympus will be presenting two papers in the seminar programme at AOG on the benefits of phased array testing. Ultrasonic weld inspection sends a sound beam into the part at an angle and receives a reflection from any discontinuity. In conventional ultrasonics, three separate scans are usually performed at angles of 45°, 60° and 70°. With PA, beams at each of the
three standard angles—and all those in between—can be generated electronically. Each beam can then be combined into a composite picture called the sector scan where different colours indicate the size of the reflection. NDT analysis of manufactured materials by X-ray fluorescence (XRF) is a crucial tool to the oil and gas industry. Used as a quality control tool, Engineers can use an Olympus Delta Professional XRF analyser prior to constructing or assembling a structure to confirm that the material received is in fact what the design engineers had specified.
NZ Manufacturer February 2014
I have come to the conclusion that most companies segment markets the wrong way, making it hard for them to spot real opportunities for innovation. – Clayton Christensen, Foreword, Innovator’s Guide to Growth
Hot Runner range expanded
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he G24 Hot Runner Temperature Control System was designed for use on injection moulding applications, but also for other applications such as controlling thermoforming, blow moulding and extrusion (profile and sheet). The new products include:A new Mini Touch-Screen - which provides full feature performance at a lower cost. It is windows based and available for controllers with up to 48 zones. G24 Controller with 12 zones This is the ideal solution for moulders running smaller hot runner systems applications. It features a half-size control block with 15 amps per zone control. It is available with either the new lower cost Gammaflux Mini Touch Screen or the traditional fullfeatured interface. A new Mould Wizard - an all new controller setup and configuration tool which provides fast, easy setup and access to key G24 features. It guides users through the setup process and unlocks hidden profitability by more fully utilizing the advanced features of the controller and decreases setup time simultaneously. It is available on all Gammaflux G24 controllers.
Gammaflux specialise in the production of hot runner controls for the plastics injection moulding industry. They have a reputation for providing innovative solutions for temperature control and their systems are used worldwide in some of the most challenging injection moulding applications.
New injection technology in one machine cell
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rauss Maffei will exhibit at Chinaplas in April 2014 a KM CX 200-180/180 W twin injection moulding machine in collaboration with Zahoransky Group of Germany and their innovative patented ‘cube technology’ concept TIM (Total Integrated Manufacturing) enabling the moulding, assembly and testing of multi-component parts in one injection moulding cell. The key to the efficiency of the system is the two mounting plates which are positioned outside the tool. This allows complex assembly processes to be carried out in parallel to the production without increasing the cycle time. The mounting plates can be moved on the X and Y axis by 180º and at the completion of the injection process the moulded parts can be picked up by the assembly
jig and combined with the parts that have already been produced. The rotary cube mould system is run on Krauss Maffei CXW Spin Form Series Injection Moulding machinery. This series combines the proven dual platen technology of the CX and MX series and offers ideal accessibility to the mould and space for the integrated assembly stations. The central positioning of the two opposing injection units allows for hot runner systems with natural balancing and short flow paths. Energy saving servomotors control the movement of reversing the plates in the opening direction and the rotation of the cube mould with absolute position accuracy. The unique system provides energy and space savings and is available in clamp sizes ranging from 1,800 kN to 40,000kN.
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PRODUCT NEWS
Hold on with CamJam
he ubiquitous bungee cord has been re-invented to be a much more useful tie-down strap that will also cause less damage to items that need restraining. The CamJam is an easy, knot-free way to tighten, tension and secure lighter and fragile loads of all kinds in the back of a car, caravan, motorhome or even on a boat. It also has lots of uses for camping or securing items around the home or office. A traditional bungee comes in set lengths and they can cause damage to delicate items when stretched tight, but the CanJam is more versatile, according to its importer Griffith Equipment, which has just introduced them to the New Zealand market. The CanJam features a strong cord that attaches to a pair of sturdy and durable carabiner clips with a stainless steel gate on one end and a rotating, ridged cam mechanism on the other. Designed to lock into place with a simple pull of a cord the CanJam can be fastened onto a hook, D-ring, or loop and then the cord is fed through the cam until the desired level of tension is reached. A firm pull locks the cam into place and it stays that way until
released by rotating the cam. Easy to adjust and re-adjust, the CamJam is made to use and re-use hundreds of times, in hundreds of ways. It’s excellent for hanging and securing tarps, tents, blinds, gear (perfect for camping). Create a loop by clipping it to one end of the cord and pulling the other end through to bundle sleeping bags, blankets, cut brush, or wrap light loads to wheelbarrows, wagons, dollies, bikes and boats. They are a simple, yet effective means of securing lighter and fragile loads and they are very strong and because you can set the tension, it provides a much better solution for securing items without causing damage, which can happen with rubber bungee cords. The CanJam has been developed by American company Nit Ize, which was responsible for the S-biner carabiner clip that was launched in New Zealand by Griffith Equipment last year for use in clippings keys or other small items to a belt or bag. The CanJam is available here in a single clip pack or a double clip pack with 2.74 metres (8 feet) of 2mm or 5mm cord from automotive retail outlets throughout New Zealand.
The CanJam is ideal for securing light or fragile items without causing damage.
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NZ Manufacturer February 2014
WORKSHOP TOOLS
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There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. – Sam Walton
Sealed switches make seeing easier
ver tried to find a switch to operate driving lights, a diff lock or compressor in the cabin of a 4WD vehicle in the dark? Chances are you probably pushed several un-related switches or buttons in frustration until you found the right one. But now there is a solution. A new range of top quality illuminated rocker switches have 4WD-specific accessory symbols so that owners of four-wheel-drive recreational and work vehicles can easily find and turn on accessories when it’s too dark to see clearly in the cabin. The fully sealed, globeilluminated 12-Volt rocker switches are printed with the most popular 4WD accessory symbols and built tough for demanding off-road environments, which means they will continue to work long after low quality switches have parted company with wires or just stopped working. For a long operating life, the switches feature a fully-sealed fascia, which prevents dust, water or other debris fouling the switch mechanism.
From page 1
production of the Falcon large car and Territory SUV in October 2016, there were immediate fears for Holden and Toyota due to the implications for the critical automotive parts supplier base in Australia that served the trio. The closure of the five Victorian and South Australian production facilities operated by Ford, Holden and Toyota will directly result in the loss of approximately 6600 manufacturing jobs by 2017: 2500 from Toyota’s Altona plant, 2900 from Holden’s Elizabeth vehicle plant (1600) and Port Melbourne
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Users will also appreciate the generous proportions of the switches, which makes them easyto-engage over rough terrain, while the sealed design means that muddy or wet fingers won’t pose a problem. Available in ‘off/on’ and ‘on/off/ momentary on’ (ideal for winching), the switches feature a dash-light function that turns on with the park lights, making them easy to locate at night or in poor light conditions. When engaged, the backlit symbol also illuminates, confirming to the operator that the accessory is on. The range of 4WD switches are screen-printed with a white symbol and title printed on a blue lens with most of the popular 4WD accessories covered. Available symbols include: driving lights, fog lights, front and rear diff locks, compressor, back-up lights, auxiliary lights, roof lights and winch. Should a different symbol or colour be required, the globe illuminated switches are also available in blank amber, blue, green or red options allowing the user to customise, via a decal set containing 50 popular 4WD accessory symbols.
The globe illuminated switches are easy to wire and suit both negative and positive switching systems found in late model four wheel drive drives and utes. Users wanting to bank a number of switches can do so via interconnecting mounting panels to
Unions pushed Toyota too far
engine plant (1300), and roughly 1200 from Ford’s Broadmeadows vehicle plant (at least 650) and Geelong engine plant (510). At least 300 of those will disappear from June this year; however, as Ford scales back its vehicle output in the face of record low Falcon and Territory sales. Additionally, the company says it cannot guarantee its local production operations will survive until 2016, meaning hundreds more jobs may go sooner than originally planned. A wider view of the industry reveals a more significant impact.
Government data shows more than 45,000 Australians are employed in the local motor vehicle and parts manufacturing industry, and industry experts believe as many as 30,000 jobs – many of those in component manufacturing – could disappear with the three car makers by 2017. According to the same Australian government data, almost a quarter of a million Australians are employed in automotive repair and maintenance, and motor vehicle and motor vehicle parts retailing
provide a neat and professionallooking finish and ease of installation, requiring only one mounting hole. The new range of NARVA globe illuminated sealed switches are available from leading automotive outlets throughout New Zealand.
and wholesaling industries. Encouragingly, a Productivity Commission report concluded that those workers were not likely to be seriously influenced by the presence of a local vehicle manufacturing industry. There was no overall plan for the Automotive industry, no general strategic plan, no plans for manufacturers exiting when it was obvious from the 1990’s to the present they might. Australian cars will still come into the country, except that they will be made in America and Asia.
NZ Manufacturer February 2014
We are limited, not by our abilities, but by our vision. – Unknown
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THE FUTURE OF MANUFACTURING
Catalytic converter to cut car manufacturing costs
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new catalytic converter that could cut fuel consumption and manufacturing costs has been designed by a scientist from Imperial College London. A catalytic converter is the component in a vehicle’s exhaust system that eliminates some harmful emissions. Tests suggest that the new prototype could reduce fuel consumption in a standard vehicle by up to three per cent. It could also deliver environmental benefits by reducing the amount of CO? that each vehicle emits. The new design uses up to 80 per cent less rare metal, a development that could significantly reduce costs for vehicle manufacturers. Catalytic converters are expensive to manufacture because they use precious metals such as platinum to eliminate emissions. These metals currently account for up to 60 to 70 per cent of the cost of the component. The prototype is also predicted to perform better than existing models because the rare metal degrades less
over the lifetime of the component. Laboratory tests suggest that it deteriorates by only four per cent over a distance of 100,000 kilometres, compared to 35 per cent for a standard catalytic converter. The inventor of the prototype device is Dr Benjamin Kingsbury. He is also a Research Associate in the Department of Chemical Engineering at Imperial College London. He says: “Catalytic converters are the most important component in a vehicle for controlling exhaust emissions. Yet their design has not changed since they were first developed in the 1940s. “The prototype I have developed could make cars cheaper to run because they use less fuel. It could potentially help manufacturers to reduce their costs. Drivers could also be a major beneficiary of this device, which could save on fuel costs and ultimately lead to reduced CO? emissions.” A conventional catalytic
Bentley 3D prints entire 1/3rd scale models of cars
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he new Objet500 Connex3 3D printer from Stratasys has the ability to print out in numerous materials and mixtures of materials, as well as the ability to mix three different colours to make hundreds of colours. A truly revolutionary moment within the industry. The Objet500 allows them to print our near exact 3D models of their vehicles, scaled down to 33%. From wheels, to emblems, to shifters, to tailpipes, the printer can produce extremely accurate models of them all. This allows designers to see exactly what a vehicle will look like before it is actually manufactured. They also use the printer to print out actual life sized models of parts for the vehicles as well. Nearly every part will be prototyped as scaled down versions, so that designers can assess their creations on an actual real world model. The accuracy of the Objet30 3D Printer enables Bentley to take a fullsize part and scale it down to produce a one-tenth scale model. Once they have approval at this scale, they can move onto their larger Objet500 Connex 3D Printer to produce one-third scale models, full-sized parts as well as parts that combine different material properties without assembly.
converter is a ceramic block, which is honeycombed with microscopic channels that are coated in a rare metal such as platinum. Emissions travel from the engine to the exhaust system and through the channels, where the precious metal causes a chemical reaction to occur that eliminates the harmful pollutants. Dr Kingsbury has advanced an existing manufacturing process to improve the structure of the microscopic channels, increasing the surface area and enabling the rare metal in the device to be distributed more effectively so that less metal is used. The increased surface area also makes the catalytic converter’s chemical reaction process more efficient.
The new design of the device increases fuel efficiency because it prevents ‘back pressure’, which is a build up of gases that can make the engine work harder, affecting its performance. Dr Kingsbury developed the technology in conjunction with Professor Kang Li and Dr Zhentao Wu who are both from the Department of Chemical Engineering at Imperial. He has been awarded funding from the Royal Academy of Engineering to take his prototype to the marketplace. Dr Kingsbury established an Imperial start-up company in December 2013 to market the prototype device. A key next step is to develop a production process.
3D-printed chocolate as a midnight snack
A If you were to read the following statement from the early 20th century by W.O. Bentley, the company’s founder, the use of these printers would certainly make sense: The company’s objectives are to build a fast car, a good car, the best in its class. Maintaining this tradition for automotive excellence and prestige is a fundamental focus for Bentley as it combines innovative technologies with traditional craftsmanship at every stage of development and production. This is without a doubt the future of prototyping. The Objet500 by Stratasys allows Bentley, and will allow many other manufacturers to prototype using multiple materials within one print, saving time and material, and most importantly, creating a near perfect final production.
recent partnership between 3D systems and Hershey will make it easier to satisfy your strongest candy cravings. You don’t even need to leave the house. Hershey’s new chocolate 3D printer is a pretty sweet project (pun very much intended). The chocolate printer works the same as the other ones. 3D printers use specific materials like concrete, plastic, metal, and now, chocolate to build items layer by layer, following directions from a computer program. 3D Systems said that this deal with Hershey will allow 3D printing to become a more mainstream technology by giving people the opportunity to make their favorite candies as well as invent new designs. I’m not sure how this can be accomplished when the smaller printers for consumers start at $1000 a pop, but it’s a commendable idea to make this technology more attainable to regular folk. William Papa, head of research and development at Hershey, had this to say about the partnership: “Whether it’s creating a whole new
form of candy or developing a new way to produce it, we embrace new technologies such as 3-D printing as a way to keep moving our timeless confectionery treats into the future.” 3D printing is definitely the way of the future. People are fascinated by 3D printing but may not have a use for a 3D-printed heart, prosthetic, orbuilding. Candy seems like a good middle-ground to ease into this popular item that seems to be the hot new tech trend right now. Maybe, as it becomes more prevalent, the hefty price tag will go down so we can all play with our Easy Bake Oven for adults. Critics of the chocolate printer, and other 3D-printed endeavors, don’t see the merit in such advancements for consumers. It seems more like a fear of losing manufacturing profits than a simple skepticism of an unnecessary product. The machinery in Hershey’s factories kind of looks like a series of 3D printers already, so who wouldn’t want a small chocolate factory in their home? www.nzmanufacturer.co.nz
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NZ Manufacturer February 2014
BUSINESS NEWS
Always look for the fool in the deal. If you don’t find one, it’s you! – Mark Cuban
Software updates –how useful are they?
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ew Zealand business owners should not let themselves be seduced or frightened into adopting the latest in information technology advances which, due to the speed of progress, can sometimes do more harm than good. A good example of scare mongering by some IT experts are warnings that Microsoft will stop supporting Windows XP in 2014 when, in reality, such a move is unlikely to have very much immediate effect. Chief Executive of New Zealand IT consulting and software development company Designertech, Ray Delany, says there is a misguided perception in business and the IT community that the ‘latest version’ of software, devices and other solutions is something everybody must have. “It is in the interests of marketers to keep updating and releasing new product because they are in a competitive market and it’s good for profits, but
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that doesn’t necessarily equate to better functionality or better business. “Even when businesses do not want to change, they can be scared into doing it. However, if a solution is stable, working just fine and meets their needs, there should be little need to change – depending on the particular circumstances, of course.” Delany said Windows XP is a classic example because it’s not like computers will suddenly stop working when Microsoft stop supporting the software. “Your machine and the software will carry on much the same as they always have. In fact, it is a piece of software that is well tested, well used and efficient for its purpose.” He said that very often people will load the latest releases only to find that their computers or devices are not configured to run the software. “While everything appears to be fine on the surface, you
may start to notice little glitches begin to emerge or the hardware stops working completely. That’s because the device was not designed for that software.” One example is that problems, such as loss of WiFi and loss of speed, have been reported with some Apple iPhone4s after they were loaded with the latest iOS 7.0.4. software update. “It’s a classic example of a device that won’t not run the new software update, but it wasn’t designed for that purpose so unexpected glitches may crop up.” Delany said that issues confronting businesses that are too quick to move with the times include: *Lost productivity spent on learning how to operate the new device, software or cloud solution *Costs incurred buying, configuring and supporting the new solution when the old one was perfectly fit for purpose *Less business from clients who may become alienated by sudden
changes or inefficiencies in the way things have always been done for them *Security vulnerabilities, particularly with the proliferation of apps on personal devices and also unresolved bugs and teething problems that accompany all new software *Frustration and lost opportunities when the inevitable teething problems or failures occur “If a company has a perfectly adequate information technology set-up, they should do their due diligence before leaping into new solutions or allowing themselves to be frightened by scaremongering. “Understand what your needs and priorities are – be sure of what you want the technology to achieve, take expert advice and only then make a rational decision about what is fit for purpose according to your budget. “Plan ahead. Don’t just download.”
NZ Manufacturer February 2014
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NZ Manufacturer February 2014
WAIKATO FOCUS
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Denial is tragic. Delay is deadly.
Location, location, location
hat do a wire rope distributor, aircraft designer and builder, and aviation training facility have in common? For Shaw’s Wire Ropes, Pacific Aerospace and CTC Aviation the answer is simple: location, location, location. The three very different businesses are based in or around Titanium Park, New Zealand’s latest master planned business development. A joint venture between McConnell Property, Hamilton Airport and Todd Property, Titanium Park sits at the heart of the Waikato, one of New Zealand’s largest export regions. A key attraction for the businesses is that the area provides a gateway to national and international markets via its position adjacent to Hamilton Airport, New Zealand’s second busiest commercial airport. While Pacific Aerospace has a long, happy history in the area, Shaw’s and CTC Aviation are relative newcomers. CTC was attracted to the region’s aviation hub, and the opportunity to reside amongst like-minded businesses; Shaw’s was drawn to the modern infrastructure and connectivity provided by Titanium Park. A key advantage of Titanium Park and its surrounds is the area’s accessibility and connectivity: it is flanked by State Highways 1, 3 and 21, and is just 15 minutes from downtown Hamilton. With more than 5,000 vehicles per day and 300,000 travellers per year using the airport, Titanium Park is the perfect location for a range of industrial and commercial operators targeting national and global markets. Deciding on a location for a business is no longer just a function of being close to cheap land and labour, and access to basic
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infrastructure and services. Global and local trends have seen the rising importance of clustering near likeminded businesses and growing markets, proximity to transport links, and access to world-class technology infrastructure. What’s more, there is an increased focus on meeting the lifestyle and work flexibility expectations of today’s knowledge-based workforce. The first phase of the development is complete with the opening last year of online retailer Torpedo 7’s first building, a 13,000 sqm distribution facility serving as their nationwide logistics hub. Planning is now underway for a further large distribution facility and 3,000-4,000sqm head office building to support Torpedo 7’s growth. This is part of Torpedo 7’ planned $100m investment at Titanium Park over the next five years. The Torpedo 7 distribution centre provides evidence of the growing importance of the ‘bricks and clicks’ phenomenon; that is the trend of online shopping and large, highly efficient distribution centres delivering the goods to the purchaser within 48 hours. Titanium Park is uniquely placed to benefit from this growing trend given its location, proximity to markets and connectivity. More than 830 people are already employed by businesses around Titanium Park and the airport, and this number is tipped to exceed 3,000 on the Park’s completion in 2022. Unsurprisingly, amenity is becoming a powerful drawcard when it comes to deciding on business location. Great places to work are more attractive to employees and reduce sick days and turnover, which has an impact on a business’ bottom line and reputation.
With the Titanium Park development now well underway, more attractive amenities will follow. These range from well-designed buildings and green spaces, fitness trail and gym, to a crèche, café and restaurant, service station and retail centre. The effect will transform this already desirable location into an even more appealing hub for Waikato’s successful and growing businesses.
Shaw’s Wire Ropes
Longstanding Waikato manufacturer Shaw’s Wire Ropes has purchased a 1.3 hectare site within the newly opened Central Precinct, stage two of the Titanium Park business development. Shaw’s, a wire rope, rigging and lifting equipment specialist, has been supplying New Zealand’s marine, forestry and transport sectors for more than 100 years. Shaw’s Managing Director Jonny Schick believes Titanium Park’s strategic location will appeal to a wide range of businesses from import and distribution to manufacturing, technology and even commercial office space. “Titanium Park’s proximity to the Airport, and to Hamilton, Cambridge and Te Awamutu, is great for staff and customers,” says Mr Schick. “Future road links will significantly benefit both the Airport and Titanium Park businesses, and improve logistics for national operators.” He also observes that Titanium Park enjoys a heightened exposure thanks to its proximity to the wellpatronised local events centre, Mystery Creek. Mr Schick expects the Waikato region will experience both strong population and economic growth
– Gary Hamel
over the next 10 years. “Hamilton and surrounding districts are likely to profit the most from this, including the Airport. As Hamilton Airport’s operations grow, it stands to reason that Titanium Park landholders will benefit.” And with a current lack of pressure on land supply in the Waikato, Mr Schick says location is key to maximising asset worth. “Good Airport land is limited so I’d expect the land value to reflect this in the short to medium term.”
CTC Aviation
CTC Aviation provides training facilities and accommodation for more than 200 trainee pilots and instructors. The company has been on a strong growth trajectory since establishing itself at Hamilton International Airport in 2006, increasing turnover from $2.6 million to $12 million in 2012. CTC Aviation predicts it will inject $95 million into the local economy over the next 10 years. Attracting trainees from all around the world, the centre has a very international outlook. Based on a prime 1.8 hectare site adjacent to the main airport runway, the 1,765sqm purpose-built training centre houses 10 briefing rooms, nine large lecture rooms, a crew room, two simulators, planning and operations facilities, and a large suite of management and administration offices. “This is a great location for us,” says Jodi Kitchen, Marketing Coordinator, CTC Aviation. “We bring staff here from all over the country. Hamilton is central to many of the main centres nationwide.” CTC operates a busy site: flight instructors and student pilots work on a roster of morning, afternoon and night shifts. There is currently
NZ Manufacturer February 2014
If you can’t feed a team with two pizzas, it’s too large. – Jeff Bezo
a team of 100 staff, including 68 flight instructors, a team of ground school instructors, support staff, administration and management. It also has between 190 and 250 cadets training with it at any one time. The benefits of being located nearby a high-profile business park aren’t lost on CTC, says Ms Kitchen. “We’re looking forward to the additional amenities and retail services that will come as Titanium Park develops. It will complement the training facilities and accommodation we provide for our more than 200 trainee pilots and instructors.
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“And with the increased traffic Titanium Park will bring, we will gain more exposure, which will lead to more enquiries about what we do and the courses we offer.”
Pacific Aerospace
Pacific Aerospace, located at Hamilton Airport, has been making rugged, high-performance utility aircraft for over 60 years. The company, which employs 110 staff, is vertically integrated from the aircraft design and certification, machining and forming of metal and composite components to the
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WAIKATO FOCUS
assembly of the aircraft and its systems and test flights. “Because of the specialised nature of our work, Pacific Aerospace is a league of nations,” says Steve Peters, Marketing Manager, Pacific Aerospace. “We also have a lot of international visitors – from Russia, China, Thailand, Australia. So location is much broader than just the Waikato; connectivity with other centres, particularly Auckland, is extremely valuable. We’re just 90 minutes from Auckland – most of our visitors tend to fly into Auckland, then hire a car to drive to Hamilton. It’s very fast.”
Logistics are a crucial aspect of Pacific Aerospace’s operations. Access to a highly effective freight network is important to maintain momentum. “We’re within easy reach of road, air and rail transport options, which allows our business to keep pace with incoming and outgoing deliveries.” The changing dynamics are very positive, says Mr Peters. “It’s encouraging for our overseas visitors to see the activity in the area – new buildings, new infrastructure. Visitors get a real sense of growth and energy, which sends a positive signal about the region and the economy.”
Waikato fast turning waste into wealth
he Waikato is fast turning waste into wealth, thanks to New Zealand’s first and only independent product development spray dryer and a collection of the country’s worldclass researchers. Waikato Innovation Park is the first organisation in the region to receive funding from Bio-Resource Processing Alliance (BPA). The $28,000 is helping it develop a way to scale up commercial production of pure avocado powder - a project that was started on a small scale in 2013. The BPA is a government funded initiative that helps New Zealand’s biological-based manufacturing businesses gain maximum value from waste and by-products, while reducing environmental impacts from primary production and manufacturing activities. According to BPA general manager Trevor Stuthridge, the initiative has $2.5 million per year
on offer to New Zealand companies and their research providers over the next five years. “The challenge of how to capture more value from waste in our primary industries is huge. For example, nearly half of New Zealand kiwifruit are not of sufficient quality for direct export; twenty per cent of harvested trees in New Zealand are left on the ground, and a significant amount of material from mussel harvesting is by-catch that gets thrown away. “The BPA was established to help turn these types of wastes into products with export potential. Four research partners, AgResearch, Callaghan Innovation, Plant & Food Research, and Scion, are working with eligible organisations to apply new technologies and product opportunities to waste streams from New Zealand’s forestry, marine, agricultural, horticultural, animal and microbiological industries,” Stuthridge said.
The Innovation Park’s avocado powder project is being done by its FoodWaikato division for Bay of Plenty company, Avocado Oil New Zealand. The pulp from blemished or otherwise non-saleable avocados is dried into a high value powder for use in cosmetic, nutraceutical and food products.
Thanks to FoodWaikato’s processing capabilities, last year Avocado Oil New Zealand launched a world-first 100 percent pure commercial avocado powder product known as Avopure. The product is selling successfully in the USA, Japan, China and Australia.
Dave Shute, Food Waikato Plant Manager. www.nzmanufacturer.co.nz
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NZ Manufacturer February 2014
PREVENTIVE MAINTENANCE
People often say that motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily. – Zig Ziglar
Implementing a fleet preventive maintenance program
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reventive maintenance (PM) consists of scheduled servicing, inspections, and vehicle repairs to prevent potential problems and maximise vehicle availability. Preventive maintenance is used to proactively avoid or reduce vehicle breakdowns and is based on time, mileage, engine hours, or gallons of fuel used. Preventive maintenance actions include vehicle inspection, lubrication, adjustment, cleaning, testing, repair, and/or worn parts replacement.
engine oil and filter changes; transmission fluid; fuel system; cooling system; engine and transmission mounts; drive shafts or CV joints; belts and hoses; tuneups; electrical system components; braking system; steering and suspension system; tires, wheels, and rims; exhaust system; undercarriage and frame; exterior and interior lights; body, glass, and mirrors; windshield wiper system; horn; seatbelts and seat structures; fluid leaks; and auxiliary systems.
Why be Concerned with Preventive Maintenance?
Driver is First Line of Defence
To maximise the availability of vehicles, PM services must be performed on a scheduled basis. If preventive maintenance is not performed regularly, vehicle life span will be greatly reduced. Some vehicles may be prone to excessive breakdowns requiring expensive repairs, causing a vehicle to be out of service when least expected and possibly when needed most. Vehicles may become unsafe due to lack of PM. Proper maintenance will also help prevent litigation from negligence. Preventive maintenance is as important as driver safety programs. If a vehicle becomes unsafe due to lack of maintenance or repair, the fleet manager can be held liable for negligent entrustment. As defined, liability is premised upon providing an employee with a dangerous tool or instrument, such as a vehicle, while knowing, or having reason to know, that use of the vehicle creates unreasonable risk or harm to others. Simply stated, the vehicle must be safe to operate. Should the brakes fail causing a serious crash or fatality, the vehicle is impounded by authorities for investigation. Should the investigation determine that bad brakes or other vehicle malfunctions contributed to the accident, the authorities can seek a court order to obtain vehicle maintenance records. If
your operation fails to practice preventive maintenance under these circumstances, you could be prosecuted for a negligent act, which you failed to prevent.
Preventive Maintenance Methods Vehicle maintenance and repairs can be performed in one of two methods: • Proactive: scheduled preventive maintenance. • Reactive: unscheduled breakdown maintenance. A scheduled vehicle service consists of preventive maintenance, scheduled component repairs, and driver inspection. Unscheduled breakdown maintenance is most often due to lack of preventive maintenance. Reactive maintenance can be costly and should be minimized by a proactive preventive maintenance program. The object is to have the majority of vehicle maintenance and repairs scheduled rather than unscheduled.
Developing an Effective PM Program An effective PM program should consist of the following: • Checklist of PM service tasks performed. • PM service interval or frequency to perform tasks. • Driver written-up inspections and/or complaints. • An automotive facility with trained professional automotive technicians — either in-house or outsourced. • Scheduling and recordkeeping, either manual or electronic.
Developing a PM Service Checklist An effective PM program should include a task list of both preventive maintenance and safety items. The following should be addressed during a routine preventive maintenance service: www.nzmanufacturer.co.nz
The vehicle operator is the first line of defence against unexpected breakdowns and repairs. It is important that the driver communicate vehicle problems immediately to fleet management. This allows the vehicle operator to participate in the PM program, proactively reducing breakdowns. The following vehicle systems should be monitored by the driver: • Vehicle safety items (e.g., tires, wipers, horn, brakes, steering, etc.). • Vehicle drivability items (e.g., misfire, rough idle, etc.). • Vehicle body (e.g., glass, body damage, cleanliness, etc.). • Vehicle miscellaneous repair items (heater, radio, etc.). The vehicle operator must be held accountable for inspecting these items. The PM program depends on the driver for continued success. Should the vehicle operator fail to inspect the vehicle prior to, during, and after a trip, a potential problem may go unnoticed causing a breakdown or unsafe condition. Training and accountability are important. The vehicle operator must be trained on proper inspection procedures and be held responsible for failure to inspect and report vehicle problems. This requires the support of each department and senior management. As a team effort, the PM program can be a great success.
Determine PM Intervals Check the vehicle owner’s manual for the manufacturer’s recommended PM intervals. However, note that PM service intervals depend upon vehicle operating conditions during either “normal” or “severe” duty. Most fleets operate under what is considered severe duty, including: • Towing a trailer or using a camper or car-top carrier. • Extensive idling and/or lowspeed driving (such as inner-city driving or stop-and-go traffic).
• Vehicles used for commercial applications such as deliveries, taxi, livery, or patrol car. • Vehicles used by multiple drivers such as fleet or motor pool operations. *• Vehicles operated in off-road or dusty conditions.
Technology Eases Scheduling Preventive maintenance can be scheduled manually or by using a fleet management software (automated computer system). Manual systems can be tedious and time-consuming to manage, especially for larger fleets. These days, technology is affordable even for the smallest fleet. Computerized systems are a more efficient method for gathering timely reports on all aspects of fleet management. Reports can be generated faster and more accurately, allowing the fleet manager to make timely proactive decisions. Affordable software systems can be purchased from reputable companies specialising in fleet management software. When it comes to hardware, most companies have an information technology department that can supply fleet management with the appropriate computers or an IT expert can be hired. Regardless of which scheduling method chosen, it is important to purchase a system that can be customised to your specific application requirements. Depending on those fleet operating requirements, the system should enable you to create customised preventive maintenance schedules, create and track work orders, track fuel usage, record detailed maintenance histories and tire logs, track accident and claims, manage inventory, and monitor labour, invoicing, and stock reports.
Who Performs PM Service? Preventive maintenance can be performed by either an in-house certified automotive technician or outsourced to a local automotive service centre specialising in fleet preventive maintenance with certified technicians using state-ofthe-art equipment. Teach in-house technicians the importance of performing thorough preventive maintenance service. The PM service is only as good as the person performing it; shortcuts must never be taken. The technician must proactively service each vehicle to reduce breakdowns and repairs.
NZ Manufacturer February 2014
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NZ Manufacturer February 2014
DEVELOPMENTS
Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma – which is living with the results of other people’s thinking. – Steve Jobs
Canterbury companies commit to Christchurch’s Waterloo Business Park
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aterloo Business Park is proud to welcome four major Christchurch companies to the business park in Islington. Transdiesel, Irvine Flooring, Midland Brick will commence building later this year, and Santa Rosa Foods has already broken ground at the new commercial development on Waterloo Road, Christchurch. “We are delighted to have quality local businesses such as Transdiesel, Irvine Flooring, Midland Brick and Santa Rosa among the first to join
the development. We are creating something unique and these leading companies are a perfect fit,” says Waterloo Business Park’s Development Manager, Hamish Clarke. “We’ve got considerable interest in the business park and hope to make further announcements soon,” he added. Transdiesel are to relocate their head office, showroom, warehouse and distribution centre into the park. Transdiesel, national diesel engine distributors, were attracted
Dairy farming made smarter
to the business park because of the location, quality of the Waterloo master plan, land quality and price. “We deal with heavy machinery and we need somewhere that is easy to get in and out of, Waterloo is ideal for this” says Transdiesel Managing Director Mike McKessar. “We were also really inspired by what Waterloo are trying to achieve.” On completion the new premises will house over 65 staff. Transdiesel has doubled in size in the last three years and needed to expand. “This was the perfect opportunity”. Irvine Flooring is currently situated further down Waterloo Road. The move into Waterloo Business Park will allow them to expand their Flooring Design Centre and streamline their operations. “Moving into the Business Park gives us the opportunity to create the best space possible for our head office and design centre. The flexible offerings have meant we can achieve exactly what we want” said Irvine
Flooring founder Don Irvine. Santa Rosa is relocating from their old factory in Burnham so they can improve efficiencies and utilise the latest technologies. Santa Rosa Director Colin Neal says the move to Waterloo Business Park will position them closer to major distribution links. “We were really pleased with how quickly we could get the project underway and we are looking forward to moving in and getting going. The Santa Rosa brand is synonymous with quality and innovation and Waterloo Business Park is a really exciting concept, it’s going to be a quality development with innovative touches and we can’t wait to be a part of it,” says Mr. Neal. The $5 million build will initially be 2,500m2 with the ability to expand to 8,000m2 as Santa Rosa’s business grows. The purpose built food processing plant will include office space and a retail shop.
First erasable printer/copier for NZ
A Waikato engineering graduate Andrew Russell scans milk samples which will later be analysed, during a visit to a Waikato milking shed as part of his role at Lely Sensortec Ltd.
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sing electronic engineering to help farmers worldwide is an exciting reality for University of Waikato graduate Andrew Russell. Andrew works for Lely Sensortec Ltd, a company which designs animal management products. His role within the company is to complete research and development into new and innovative ways to electronically sense cattle herd health. In the past a significant project for the company has been creating a milk quality monitor for use on dairy farms. “On a typical day I may be working on data analysis, or designing and assembling new prototypes. Testing these prototypes is a highlight, during which we visit farms, talk to farmers and recreate real life situations,” says Andrew. The former St Paul’s Collegiate student completed a Bachelor of Engineering and Master of Engineering at Waikato University. He chose Waikato because it was close to home and had the bonus www.nzmanufacturer.co.nz
of the School Leavers Scholarship. “Although engineering at Waikato University is relatively new, I think the degrees offered are just as good if not better than ones obtained from a traditional ‘engineering’ university.” He says the main experience that stood out in his undergraduate degree was the opportunity to complete work placements as part of his study. “Work placements are an opportunity to get a foot in the door and get some real life experience. During my second work placement I worked here at Lely Sensortec. I studied the effect of temperature on sensors and learnt how to calibrate against temperature effects.” Following undergraduate study, Andrew received a masters scholarship from the Ministry of Science and Innovation, which allowed him to build further on his relationship with Lely Sensortec, completing research into milk spectroscopy in collaboration with the company.
new multi-functional printer (MFP) that for the first time allows users to print and erase documents then re-use the paper will make its debut in New Zealand next month. Developed by Toshiba, the worldfirst Eco-technology can reduce paper usage by up to 80 percent; saving money and helping users reduce their carbon footprint. The Eco MFP slashes carbon dioxide emissions associated with standard machines by 50 percent. The Toshiba system comprises two machines: the e-STUDIO306LP multifunction copier that uses a special erasable toner and the RD30 erasing device that uses heat to erase what has been printed, allowing paper to be used up to five times. Before applying the heat, it can scan the output to file via network or USB drive for archiving so that its data is not lost. It can erase 30 sheets per minute and then sort through and eliminate any damaged paper from being reused. The “erasable” printing is as distinctive as the MFP itself. Its blue colour notifies users that its output is erasable and the paper reusable. So they know that they’re not only saving money by using less paper for the same document volume, but also protecting the environment In essence, the new technology bridges the gap between reducing and recycling paper.
The system delivers colour scanning and other functions typically associated with large Toshiba multi-function copierprinters. These include rapid warm-up, fast first copy times, double-sided printing, and print speeds of up to 30 pages per minute. There’s also walk-up printing, simply by plugging in a USB flash drive; and a full 9” LCD Touch Screen with large, easy-to-read control buttons. Cost is expected to be around $7, 000.00 and a number of organisations have already bought it sight unseen. Those that have high volume printing needs – for example in education, law, finance and government - will benefit significantly from reduced costs while supporting the environment. The Eco system is part of Toshiba’s programme to produce eco-friendly products that drastically reduce a company’s carbon footprint by using less energy and making efficient use of resources.
NZ Manufacturer February 2014
Success means having the courage, the determination, and the will to become the person you believe you were meant to be. – George Sheehan
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EVENTS
Engineering event highly anticipated
he biennial EMEX engineering, manufacturing, machinery, electronics and technology industry event being held from 27-29 May is attracting much interest. Industry exhibitors and visitors are anticipating a great show, and many new sector companies are investing in EMEX being a great showcase for their products. ‘With the theme of this year’s EMEX being ‘Where New Zealand Manufacturing Innovation Takes Off!’ suppliers will be showing the latest cutting edge technologies for every aspect of the manufacturing process from design right through to delivery says EMEX sales manager Mike Lust. Industry exhibitors and visitors are anticipating a great show. “A spectacular show centrepiece will be a New Zealand designed and built carbon fibre composite helicopter. It’s manufactured in Dairy Flat by the Composite Helicopter Co which has had export orders from a number of military agencies in the Northern hemisphere. There will even be a visitor draw for the chance to win a ride in the helicopter! “There’s a great deal on offer for industry visitors through knowledge gained from exhibitors, new insights and learnings picked up during the impressive seminar programme. There’s an impressive list of other prize draws on offer such as the change to win a Ford Transit Custom SWB valued at $51,000, and 2degrees prize draws promotions.
Many hundreds of trade visitors have been challenging their online gaming skills in the leadup to EMEX 2014. The EMEX website contains a custom built helicopter flight game giving the industry a fun glimpse into what they can expect to see at the event, and a leaderboard tracking visitor and exhibitor best scores That’s running right now at www.emex.co.nz/game.php.” says Mike Among those in the industry keen for EMEX 2014 to get underway and showcase the industry is a company that is at the cutting edge of a high tech that’s sweeping the world. Dermid McKinley says Tasman Machinery is one of the pioneering companies in the New Zealand engineering and related industries. “We’re thrilled to be back at EMEX. Visitors to our stand will be blown away by the advances in 3D printer technology. They’ll see a full range of FDM and Polyjet 3D Printers, and see some of the most exciting and game changing technologies yet to be seen out of the fast moving 3D printer industry. Stratasys is again at the forefront of the technology curve. Since EMEX 2012, the growth in the 3D printing market has been incredible, with the uptake across all sectors continuing to accelerate as the huge advantages offered become even more apparent to users. Until you see what these new machines can do you won’t believe it.” High tech will be a common sight throughout EMEX 2014, and Mike
Shatford of Design Energy says robotics will feature. “As a proudly Kiwi company we have worked hard to find technology that fits New Zealand producers who historically have been unable to enjoy the benefits of automated production. EMEX 2014 is an excellent opportunity to share our expertise with industry. As sole New Zealand agents for Universal Robots (www.universal-robots.com) and Nachi Robotics (www.nachirobotics. com) we will be showcasing two companies who are leading the world with award winning, high performance industrial robotic arms, even though these brands are not yet widely recognised in New Zealand.” ‘Energy’ is a word that’s used a lot these days. With environmental impacts as well as increasing costs, it something top-of-mind for everyone says Alistair Jeffcoat of Powerbox Pacific. “Powerbox is looking forward to EMEX 2014 and we have something very special and very cool to show those attending this year’s show. We will have on our stand a Methanol
sugar and flours at rapid speeds. In the second configuration, the tna robag 3ci RTJ 180 will feature a tna intelli-weigh 0314 omega multihead scale, a tna hyper-detect metal detector and a labeller. This ultrahigh speed system offers unmatched throughput rates of 150-180bpm on snack foods, making it ideal for high volume packaging. The company will also present the latest evolution of its proven robag system, the tna robag 3ci. Highlighting tna’s capabilities in the fresh produce market, the on stand tna robag 3ci system will combine the high speed polyethene (PE) rotary bagger with a tna intelli-weigh 0614 multi-head scale for fast, accurate weighing, and a newly designed tna roflo high throw conveyor for the rapid distribution of sticky products such as salad leaves. Visitors to Interpack will also be able to see the company’s latest spraying solutions in action. Two display cabinets will showcase the
innovative application of oils using tna’s high performance spinning disc spraying technology and variety of options for spray nozzles. For consistent application with minimum waste, the new tna intellispin 105 spinning disc spraying system achieves an even coating of liquid on the top of products such as confectionery. Easily incorporated into an existing production line, it is ideal for the application of glazes such as sugar, milk, egg or shellac, water, oils, slurries and couverture or tempered chocolate. tna will also highlight its system automation and SCADA expertise and the ease of integration of its equipment into existing lines via an on stand large re-circulating production line. Featuring the tna intelli-flav 5 and intelli-flav 3 seasoning systems, and horizontal and vibratory tna roflo 3 conveyors, the entire line will be controlled by a human machine interface (HMI) system which provides accurate
Fuel Cell converter that converts liquid Methanol into 12V or 24V DC and is used primarily to provide battery recharging for equipment in remote areas. “The product is best used in a hybrid setup with solar panels or a small wind turbine. As wind and solar energy are dependent on weather conditions they are not always guaranteed to be around. When they aren’t present and the battery bank has been discharged to a pre-defined level, the fuel cell switches on, drawing in Methanol and air which is passed over a catalytic membrane in the stack and converted into electrical energy. Smart electronics built into the Fuel Cell converter detects the battery bank voltage and recharges at a profile based on whether you are running a 12V or 24V DC battery bank. “Gone are the days of worrying whether or not your auto start generator is going to start in the middle of winter. The EFOY Pro fuel cell provides clean and autonomous back up power whatever the weather. In addition to having an EFOY Pro Fuel on the stand there will be demonstration videos being played on a flat screen TV showing how this product can be used within a variety of industries.” High tech and energy solutions seems obvious, but technology is something that’s found in what, at first glance, seems to be the leasttechnical of things. Hose reels are a good example.
High performance packaging solutions at Interpack 2014
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ioneering integrated packaging solutions provider, tna, will demonstrate its flagship high performance, flexible spraying, distribution, seasoning and bagging solutions at Interpack 2014. On-stand experts will present innovative products and solutions to today’s food manufacturers’ issues, including the need for increased productivity and flexibility in their production line whilst reducing costs. Plus, the team will highlight the benefits tna’s automation and SCADA capabilities can bring to food production lines with an on stand demonstration of a large seasoning and conveying system. Visitors to Interpack stand 17B/43 will be able to experience two different configurations of the tna robag 3ci high speed VFFS packaging machine. Firstly, the tna robag 3ci RDJ 230 will showcase the system’s ability to package powder applications such as coffee,
machine and production data for operators. tna’s specialist control and integration solutions can target a variety of inefficiencies, such as poor product quality, material wastage or unsustainable processes.
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NZ Manufacturer February 2014
ENERGY Buying in to a better way of purchasing
Learning is not compulsory…neither is survival. – W. Edwards Deming
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t’s a simple enough process. You need something. You find a supplier who has what you need. You hand over money or goods in return for the item or service. You or they arrange possession. The commercial structure of the entire western capitalistic world is based on this simple principle. It’s called sale and purchase. But what if instead of purchasing the one item you need for a job or contract you canvas a range of suppliers and buy 50 of those items that are “fit for purpose” knowing you will ultimately use the goods and bulk purchase means a lower per unit price – well that’s called procurement. Corporate procurement is an industry in itself in New Zealand commerce these days. Procurement managers have procurement staff, report at high levels – usually to chief executives – and have their own set targets and key performance indicators. But it wasn’t always this way and although not entirely new, the growth of the procurement portfolio has been slow. Many large organisations doggedly and often unwisely still leave the purchase function to their individual departments, preferring not to centralise the procurement function, or as some business commentators have noted, remained ignorant as to the indirect losses to their business caused by staff who were employed to do a certain job being tied up in the unfamiliar world of suppliers, budgets, shipping, delivery times, insurance and that most basic of all factor “what do we actually need?”. It is widely held that the forerunners of corporate procurement were the many railroad organisations across the world, which prior to 1900 recognised purchasing as an independent function. Procurement gained momentum in during World Wars One and Two, due to the importance of obtaining raw materials, supplies, and services needed to keep the factories and
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mines operating. Then in the 1950s and 60s group purchasing gained its wings as the techniques of “the trade” became more refined and as the number of trained professionals increased. That coincided with the introduction of major public bodies and intergovernmental organisations. Procurement had become a wellrecognised science. The elevation of the function continues today as “Chief Procurement Officers” are recognised as business leaders and begin to take on broader operational responsibility. Their craft, or supply management, is something that is now viewed as very strategic to the business, fuelled strongly by the development of supply management software which helps automate the process. With that came websites, publications and events dedicated solely to the advancement of Chief Procurement Officers and the procurement function. Commentators have noted that the global recession of 2008-2009 places procurement at the crux of business strategy. Procurement is defined as the acquisition of goods, services or works from an external source that are fit for purpose procured at the best possible cost and delivered to meet the needs of the purchaser in terms of quality and quantity, time, and location. But there is a need to be fair to suppliers too. Corporations and public bodies often define processes intended to promote fair and open competition for their custom while minimising exposure to fraud and collusion among suppliers. Procurement is often split into two areas: the first is direct productionrelated purchasing, normally the domain of manufacturers who use the goods as part of their finished
By Graeme Stilwell
products like raw materials, parts and other components. Such purchasing generally affects the direct production process so the need for continuity of supply, delivery times and quality is paramount. The second is indirect procurement that a company purchases to enable it to operate. Those supplies are usually the lowvalue office supplies “the paper clips”, and lubricants for machinery for example. Procurement managers say their
role produces many advantages, often potentially saving the cost of their department alone and more. Among them the procurement function promotes familiarity among contractors and consultants; the roles and responsibilities are well understood; there is certainty of price; it is usually easier to analyse the prices; and, the biggie, the lowest price obtained through all of the above is usually the best value for money.
lighting professionals in New Zealand. “Road Lighting 2014: Innovation, Efficiency & Safety will be held on 11-12 March at the Langham Hotel in Auckland and will feature international experts with first-hand experience of switching to efficient road lighting. “Independent assessments indicate LED lighting could save up to 50% or more of the energy currently consumed on road lighting and that this represents a major potential benefit for councils that make the switch to LED road lighting,î Mr Brander says.
“International experience indicates that energy savings could be multiplied even further if the switch to LED road lighting is accompanied by a switch to modern lighting control systems that allow for ‘adaptive’ dimming and brightening of road lights to suit the prevailing conditions, from traffic density to weather. “EECA is keen to help communicate these findings to road controlling authorities in New Zealand so that switching to efficient lighting can be considered in future plans.” he says.
Move to LED road lighting could halve costs
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ew Zealand’s road lighting costs could be halved if new LED lighting technology was adopted, according to the Energy Efficiency and Conservation Authority (EECA). “If New Zealand’s road lights were switched from high-pressure sodium (HPS) lighting to LED road lighting, the country would save about 100 gigawatt hours of electricity a year - enough to power more than 11,000 homes,” says EECA lighting programme manager Bill Brander. The significant savings involved prompted EECA to support the inaugural conference for road
NZ Manufacturer February 2014
Occasionally, a visionary leader‌intuitively understands what it takes to innovate a business model or to build an entirely new one. – Mark W Johnson, Chairman, Innosight in Seizing the White Space
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ENERGY REPORT
Renewable energy sources are just a power failure
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uch has been written about the contribution that wind and solar have made to the Australian energy supply, especially in the recent hot spell. About 10 per cent of electricity supply comes from renewable sources, two-thirds of this being unsubsidised hydroelectricity, with one-third from wind/solar which needs subsidies to cover more than half of its costs. During heatwave conditions in the five days to January 18 this year, wind actually contributed 3 per cent of electricity supply across the Australian National Electricity Market. Nobody knows the contribution of rooftop solar but it could not conceivably have been more than 1 per cent. Overall, wind facilities amount to 3300 megawatts of capacity, somewhat less than the Loy Yang brown coal power stations in Victoria or Macquarie Generation’s black coal facilities in the Hunter Valley. Windmills produced at an average of 23 per cent of their capacity during the January heatwave. This was below their year-long average of about 30 per cent because the hot spell, as is often
the case, was characterised by still air. Fossil fuel plants are available 95 per cent of the time. Gas plants (and hydro-electricity) can be switched on and off at very short notice to fill the peaks in demand. As a result they generally earn more than the average plant on the electricity spot market. The below-par performance of windmills in high-demand periods means they not only require a subsidy but are also less valuable than other plants because their availability is reduced when they are most needed and when the price is highest. Accordingly, windmills actually earn less on average than other plants in the electricity spot market. Indeed, during the recent heat wave, wind power earned an average of $123 per megawatt hour in Victoria and $182 in South Australia while the average price was respectively $209 and $285 in the two states.
Subsidies are expensive
Investments in wind and other subsidised electricity generation, according to the renewable energy lobby group the Clean Energy Council, has been $18.5 billion.
By contrast, the market value of comparable generating capacity in Macquarie Generation coal plants is said to be only $2 billion and a brand-new brown coal plant of 3300 megawatt capacity would cost less than $10 billion. Wind aficionados claim that such costings do not take into account that wind is free whereas fossil fuel plants have to pay for their energy. But that is also untrue. Wind plant maintenance is about $12 per megawatt hour which is more than the fuel plus maintenance costs of a Victorian brown coal power station. Subsidies to renewable energy were once touted not only as a key to reducing emissions of carbon dioxide but also as paving the way to a future source of electricity that would become competitive in price and reliability with fossil fuels. After two decades of increasing subsidies, this optimism has proven to be unfounded. Instead we have seen subsidised renewable energy sucking capital into worthless investments. On present plans, a nominal 20 per cent of electricity is to be sourced from renewables by 2020. By that year the excessive cost burden on the economy will be
$5 billion a year and rising. This entails crippling subsidies paid by consumers and businesses. The imposition has been a factor in the foreshadowed plant closures of Holden, Electrolux and the aluminium smelters at Kurri Kurri and Point Henry. Because of our readily available coal and gas Australian electricity costs are intrinsically among the lowest in the world. This was formerly crucial to attracting highly competitive energy-intensive industries like smelting. Australia could once again benefit from lowcost electricity if deregulation freed energy supply from its renewable obligations. The benefits would be especially welcomed across all agricultural and manufacturing industries that are subject to international competition. Subsidies on existing Australian renewable plants are planned to run for 15 years. But Spain, previously the poster child of renewable subsidy excesses, has shown the way forward by eliminating all previously promised subsidies. Australia needs to abandon its own renewable schemes and allow the energy market to operate on commercial terms.
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NZ Manufacturer February 2014
FOOD MANUFACTURING Advanced fruit sorting equipment draws interest
Goals are dreams with deadlines. – Diana Scharf Hunt
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iwi company BBC Technologies was at Fruit Logistica in Germany recently, on the back of a wave of international interest in its smart fruit sorting solutions. BBC, the world’s leading supplier of blueberry sorting and packing machinery, exhibited at Fruit Logistica for the fourth time this year. The event, which took place in Berlin, attracts more than 2,400 companies and 50,000 visitors from all parts of the world’s fresh produce value chain. In terms of overall sales, Europe is BBC’s fastest growing region, says International Sales and Marketing Manager Jason Walker. “As production of blueberries and other small fruit expands in Europe, customers are looking for advanced equipment like ours to handle both sorting and packing.” BBC showcased its new MIRA -360 machine which sorts for colour and identifies and removes defects including cracks and splits, soft rot, wrinkles and bruises and insect damage. It also sorts in multiple streams by size to ensure customers comply with standard industry sizing bands. Also in action was the company’s Fresh Tracker traceability software which can track individual products
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from harvesting and processing through to packaging and point of sale. Walker says Fresh Tracker is resonating strongly with customers as demand grows for ways of minimising risk and ensuring fresh produce is of premium quality. In addition, BBC spoke to customers about next generation equipment soon to be released in the European market, including its new Dura-Touch Compact sorter, a high performance machine that removes soft fruit while ensuring all product is handled gently. Testing has shown the DuraTouch Compact rejects over 80 per cent of visibly undetectable soft fruit. BBC’s key business is providing customers with turnkey solutions which combine its high-tech sorting and filling solutions with support products and Freshtracker. Walker says all components of the company’s solution effectively ‘talk’ to each other and are both simple and efficient to use. “Our offering is very attractive to cherry growers in Europe (which accounts for around 75 per cent of global production) as it gives them a range of options for presenting their fruit and helps them ensure their fruit is premium quality and lasts on the shelf,” says Walker.
He says BBC’s turnkey solutions are also increasingly sought after as blueberry plantings expand in Europe, particularly in the east where, for example, BBC has recently installed several new lines in Poland. There were five staff on BBC’s stand at Fruit Logistica – two from the company’s office in the Netherlands, one from its Chilean office and two from New Zealand. Walker says having staff on the ground in Europe is paying dividends for the company. “We can attend to sales enquiries immediately and it also allows us to maintain our company’s commitment to the highest level of service. “We have a service manager based in Europe, supported by a mobile service team which comes to Europe in busy periods. That means when customers have an issue, they simply need to pick up the phone to our support team and help is at hand.” BBC General Manager Geoff Furniss says despite Fruit Logistica being a “who’s who” of the fresh produce industry, BBC stands out as being different and effective. “A number of potential customers have seen us for the first time at
Fruit Logistica and been excited by our technology. Being there also adds to your credibility. Customers really like being able to meet us faceto-face,” says Furniss. BBC has deep roots in the horticulture sector and owns 162 hectares of blueberries in New Zealand. It has been selling its technology in the United States for 13 years and also has established markets in Europe, South America and Australasia, with its equipment operating in 20 countries. The company employs more than 85 staff in New Zealand and overseas and is actively recruiting to support its steady growth in domestic and offshore markets. ABOUT BBC Technologies are specialists in the manufacturing and development of Advanced Processing Technology. The New Zealand-based company has a track record of investing in research and development to provide innovative solutions to the horticulture industry globally. Its equipment is sold and serviced throughout North America, South America, Europe, Australia and New Zealand. BBC Technologies has a strong commitment to service and all its products are backed by industry-leading support.
NZ Manufacturer February 2014
Statistics suggest that when customers complain, business owners and managers ought to get excited about it. The complaining customer represents a huge opportunity for more business. – Zig Ziglar
2014 From
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on’t worry - I am not going to elaborate much on the positive business outlook for 2014 which was already done by many commentators. I will concentrate on the 2014 key HERA actions attempting to positively influence local industry focused procurement by our largest industry client – the public sector. To be controversial, I start with the news of our industry losing out to Bangladesh in the building of a New Zealand taxpayer-funded ferry for Tokelau, and the announcement that Fitzroy Yachts will likely close its doors in February. Both do not bode well for NZ’s metals-based ship building . The Government’s decision to give the contract to the Bangladeshi shipyard for NZ$8M at about half or - depending what source of reporting you believe - a third of the cost of a NZ option was questioned by industry leaders in respect to government procurement practice. But Minister Stephen Joyce defended the decisions as being ‘best value procurement’ for the NZ tax-payer. As you are no doubt aware, HERA is heavily involved in the topic of government procurement reform via my involvement with the associated MBIE Business Reference Group, but more importantly via the associated research around economic impact of government procurement decision-making and the associated policy formulations. The BERL-developed procurement decision-making tool helping procurers to assess the
economic, social and environmental impact of a decision was one of last year’s outcomes of this HERA effort. I am sure, if we would run the two cases - manufacturing in New Zealand versus manufacture in Bangladesh - through the BERL evaluation tool, due to the two simple facts that ship-building is labour intensive and that those labour costs in Bangladesh is less than 1/10 of the NZ cost, we are unable to justify the NZ option even under the consideration of all aspects of the economic and social impact on New Zealand. So I am not refuting Steven Joyce’s argument on the best value requirement for the ferry purchase. But I would like to ask what option would the government procurers have had if they would see themselves as lead user innovators and specify a ship which would have had significant innovation potential for the NZ ship-building industry, leading eventually to increased business activities for an industry under pressure but with huge potential for New Zealand? The new Government Procurement Rules of Sourcing encourage such innovative procurer behaviour, but for it to actually happen needs significant change in procurer behavior. For these changes to happen, the Government would have to grow the NZ ship-building industry on their Business Growth Agenda, including the willingness to put additional money into the development of this industry sector. In my view, the new rules offer potential for NZ business
to development but we all, government and industry employees alike, need to put in the hard work to give them traction. HERA’s 2014 advocacy focus is to support Government and industry in understanding the procurement rules and maximising the potential benefits from them. We have to start a serious debate on the requirement of delivering best value, including really considering the economic and social impact of procurement decisions. We need to explore what types of benefits from local purchases will justify a premium for the local offering while complying with our procurement rules? Considering quality is equal, New Zealand’s heavy engineering item costs are most of the time not too far out from the competition. Knowing the economic and social impact of a decision most of the time will be able to justify a premium of at least 20%. Let’s work towards understanding that these extra costs do actually provide better value for New Zealand and secures a sustainable high-value engineering industry. There are many public sector procurement decisions to be made in 2014. Wouldn’t it be nice to be able to report of projects being procured from New Zealand industry with a
NZ MANUFACTURER • March 2014 Issue • Features Opinion Manufacturing Profiles Letters to the Editor Politics of Manufacturing Trade Fair World Diary of Events World Market Report Q/A Export News Machine Tools Business Opportunities Commentary As I See It Business News Appointments Around New Zealand Australian Report New to the Market Lean Manufacturing Equipment for Sale Recruitment Environmental Technology Manufacturing Processes
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REAR VIEW
Commentary by Heavy Engineering Research Association Director Dr Wolfgang Scholz price premium paid, but also the full and transparent understanding that we are getting better value for our taxpayer Dollar which would make us all .
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The Future of Manufacturing Automation & Control Transport Workshop Tools Advertising Booking Deadline – 20th March 2014 Advertising Copy Deadline – 20th March 2014 Editorial Copy Deadline – 20th March 2014 Advertising – For bookings and further information contact: Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz Tel: +64 6 870 9029
Editorial material to be sent to : Doug Green, P O Box 1109, Hastings 4156, Hawke’s Bay Email: publisher@xtra.co.nz Tel: 06 870 9029 Fax: 06 878 8150
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NZ Manufacturer February 2014
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