Manufacturers' Monthly July 2015

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

Est. 1961 JULY 2015

Getriebetechnik n n n n

Starke Lagerung Ger채uscharmer Lauf Korrosionsschutz (AL) Hohe Leistungsdichte

Motorentechnik

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Alle Umgebungen Schutzklasse bis IP69K Flexible Schnittstellen Skalierbare Funktionalit채t

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Print Post Approved PP100007882

n Reliable n Versatile n Global

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n Reliable n Versatile n Global

Getriebetechnik n n n n

The

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Starke Lagerung Geräuscharmer Lauf Korrosionsschutz (AL) Hohe Leistungsdichte

Gear Unit Strong bearings Low noise High power density

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n Alle Effizienzklassen n Weitspannungsbereich

n n n n

(380-420V) n Auch als Brems - oder ATEX-Variante

The

n n n

Motor High efficiency Global Standards All operating conditions

Alle Umgebungen Schutzklasse bis IP69K Flexible Schnittstellen Skalierbare Funktionalität

The

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Drive Electronic Compact design Easy commissioning Scalable functionality

Wide power range – Versatile system solutions – High system efficiency

DerAntrieb.com NORD Drivesystems (AU) Pty Ltd 18 Stoney Way, Derrimut , Victoria, 3030 Australia Phone: +61 3 9394 0500, Fax: +61 3 9394 1525, www.nord.com.au National Customer Service 1300 00 NORD (6673), au-sales@nord.com Member of the NORD DRIVESYSTEMS Group

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

JULY 2015

EXCLUSIVE: The robots are

coming!

INSIDE >> 14

IT@MM Manufacturing continues its evolution

16

Workplace Safety The low-down on fire prevention

26

Women in Industry Awards We wrap up the big night

>>

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BySprint Fiber 6000 6.0 kW Fiber Laser cutting

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Inside

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For daily news visit manmonthly.com.au

JULY 2015

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Publisher: Martin Sinclair martin.sinclair@cirrusmedia.com.au

6 Editorial

Managing Editor: Branko Miletic Ph: (02) 8484 0976 Fax: (02) 8484 0722 branko.miletic@cirrusmedia.com.au Editor: Matt McDonald Ph: (02) 8484 0645 Fax: (02) 8484 0722 matthew.mcdonald@cirrusmedia.com.au

23 Metalworking

12

■ I, My & We Robot

■ Press brake delivers top speed in a small space ■ SRP Player CAM software upgrade

8 News & Analysis ■ Putting the profit back into sales ■ Abbott promises submarine jobs ■ Snaphot

Journalist: Brent Balinski Ph: (02) 8484 0680 Fax: (02) 8484 0722 brent.balinski@cirrusmedia.com.au Editor-at-Large: Alan Johnson Ph: (02) 8484 0725 alan.johnson@cirrusmedia.com.au

24 Materials Handling ■ Avoiding common warehousing mistakes

11 Comment

Graphic Designer: Dave Ashley david.ashley@cirrusmedia.com.au

■ Help us get the most out of FTAs

Production Co-ordinator: Mary Copland Ph: (02) 8484 0737 mary.copland@cirrusmedia.com.au

12 IT@MM

■ All this year’s winners

■ Production software on the rise ■ Is manufacturing redefining itself?

NSW Sales: Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Ph: (02) 8011 3184 anthony.head@cirrusmedia.com.au

16 Workplace Safety

QLD Sales: Sharon Amos PO Box 3136, Bracken Ridge, QLD 4017 Ph: (07) 3261 8857 Fax: (07) 3261 8347 Mobile: 0417 072 625 sharon.amos@cirrusmedia.com.au

26 Women in Industry Awards

18

Published 11 times a year Subscriptions $140.00 per annum (inc GST) Overseas prices apply Ph: 1300 360 126

Cirrus Media Tower 2, Level 3, 475 Victoria Avenue, Chatswood, NSW 2067, Australia Locked Bag 4700, Chatswood Delivery Centre, NSW 2067, Australia Ph: (02) 8484 0888 Fax: (02) 8484 0633 ABN 80 132 719 861 ISSN 0025-2530 www.cirrusmedia.com.au © Copyright Cirrus Media, 2015

20 Compressors ■ Individual assessment pays off MA 0 7 1 5 _ 0 0 3

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■ Automation: the enemy of employment?

32 What’s New ■ ■ ■ ■ ■ Compressor airend ■ More than one path to compressor efficiency

Torque wrenches Lightweight hole punchers Order pickers Precision moisture analyser

34 The Last Word ■ Manufacturing awaits shake-up

Behind the cover

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■ HI Fraser reaps the spoils of war and peace

29 ‘EXCLUSIVE’

■ Seven steps to fire safety ■ Rapid spill protection ■ Treotham named Euchner distributor ■ Single use gloves ■ Boots with metatarsal protection ■ Proportional valves and process control ■ Welding helmet

NSW, SA/NT & WA Sales: Cirrus Media Ph: (02) 8484 0868 anthony.head@cirrusmedia.com.au

28 Ship Building

MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

JULY 2015

CONCERNS around the effect of technology on industrial jobs are as old as industry itself. However, attention regarding the effect of automation on our coming! workplaces intensified after the release of last month’s CEDA workplace report.

Among other things, the report found that five million Australian jobs (or 40 per cent of all current roles) may disappear in the next 10-15 years. And one of the biggest causes of the change will be the onward march of automation.

In this edition we look at ways of moving with these rapidly changing, exciting times, and what’s needed to stay relevant as manufacturing – and the world it 2 0 1 5 - 0 2 - 2 6 T1 5 : 3 0 : 4 1 + 1 1 : 0 0 exists in – redefines itself.

EXCLUSIVE: The robots are

Average Net Distribution Period ending Sept ’14 18,688

INSIDE >>

Printed by Bluestar Print 83 Derby Street, Silverwater, NSW 2128 Ph: (02) 9748 3411

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14

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IT@MM Manufacturing continues its evolution

16

Workplace Safety The low-down on fire prevention

26

>>

Women in Industry Awards We wrap up the big night

Manufacturers’ Monthly JULY 2015 5

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Comment

BRANKO MILETIC – Managing Editor

I, My & We Robot “THE Master created humans first as the lowest type, most easily formed. Gradually, he replaced them by robots, the next higher step, and finally he created me, to take the place of the last humans.”

– Isaac Asimov, I, Robot

B

NEXTISSUENEXTISSUE • Electric Motors, Controllers & Drives • Industrial Doors & Access Systems • Packaging & Packaging Equipment • Management – Business Insurance • IT@MM – Warehousing Software M A 0 Handling 7 1 5 _– 0Bulk 0 0Handling _ SCA • Materials

ASED on an Isaac Asimov novel of the same name, the 2004 Sci-Fi hit movie I, Robot propelled viewers to the year 2035 where the pentultimate in automation, robots, serve humanity in just about every function imaginable. While these robots are meant to do only the menial work, it is their evolution to perform tasks of a higher (dare I say more ‘cerebral’) nature that causes an almost apocalyptic extinction of humanity.

According to figures from research company IHS, the Asia Pacific region has led the world in the sale and installation of medium voltage electric motors. In other words, industrial automation has seen its greatest rise in our region – a cause for both celebration and sobriety.

Celebration because Australian companies are finally embracing automation as not just a technological advance, but rather as an ROI enabler.

The sobriety bit comes in because, as many would have already worked out, more automation equals less staff -equals 1 even 2 0 greater 1 5 - 0 shrinkage 7 - 1 4 T in 1 the 4 : industrial 5 5 : 5 5 workforce. + 1 0 : 0 0 Not that this is necessarily a bad thing for the economy,

• Free calls between office sites • Calls from your computer • Entire staff directory on the phone • Wireless handsets and headsets • Compatible with iPhone and Android

however, for society (yes, the two can be mutually exclusive), all this change in the employment dynamics will cause great stresses to open up.

According to Professor Michael Osborne of the Oxford Martin School at Oxford University, almost half of all jobs in industrialised nations like Australia are at risk of redundancy over the next two decades.

Looking at this process backwards, research by University of Melbourne’s Professor Jeff Borland, published last year in March, has shown about 400,000 manufacturing jobs have disappeared from the sector since the 1970s.

While manufacturing still employs just under 1 million people across the country, the vision of the future is starting to coalesce and the picture that is emerging is one of a dystopian society where the only people to get meaningful employment will be those that have the technological skills to create, fix, control and install technology. The rest will work in a range of service-based industries or will have to be content with under-employment or even outright unemployment.

Phil Ruthven, founder of IBISWorld, has gone on the record and said that over half the jobs lost in the next five years would be in manufacturing, and while this is frightening stuff for some, it will also become an ongoing opportunity for many others. Only time will tell. branko.miletic@cirrusmedia.com.au

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Siemens AG. All other logos, trademarks or service marks used herein are the property of their respective owners.

© 2014 Siemens Product Lifecycle Management Software Inc. All rights reserved. Siemens and the Siemens logo are registered trademarks of

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Answers for industry.

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News&ANALYSIS Putting the profit back into your sales USG says it has revolutionised the way manufacturers take their products to market by providing them with a lower cost sales option.

Branko Miletic reports.

A

CCORDING to United Sales Group (USG) Director Tim Stone, it makes sense to outsource your sales management functions.

The Newcastle-based company has extensive experience in a range of sales strategies including product entry, sales representation, head office account management and tender and contract management.

“We offer more than just outsourced sales service; we strive to develop partnerships with our clients to be their extended sales function.

This model also gives our clients an element of control and input.”

“If you look at our vision statement: ‘United with our clients to achieve common goals’ – this says we strive to grow both businesses by providing mutual successful outcomes.”

“We work with our clients to provide feedback and ideas to help grow their business. This is achieved by detailed reporting from customer visits and market activity monitoring.”

“Every month we meet with our clients to review in detail the past months results and future activity.

Our CRM program is very detailed and provides the tools to make informed decisions on growth strategies.”

“Traditionally, the cost of one sales person (to cover just one fairly narrow geographic area) also includes salary, commissions/bonus, superannuation, insurance, car and running costs, phone, laptop and of course, travel.”

“If you compare this with our annual fee to cover the entire continent, where the client will have at the very minimum, over 300 client specific interactions with end users each and every month, or if you like a minimum of 3600 customer interactions for each client per year.”

“Put another way,” said Stone, “a company would need at least three salespeople and a bevy of support staff to cover this activity, which

would in the end have a minimum annual cost at least twice what it would pay USG.” “This means there is more than a 50 per cent cost saving by using the USG model,” noted Stone.

“By using our model, clients can and do save on reduced operating and overhead costs since commissions are only paid on achieved sales and activity budgets that are set mutually by both USG and the client.”

“Furthermore, we have access to various market intelligence companies that provide information on a diverse range of markets all over the world.”

“Currently,” said Stone, “USG is managing the sales departments of a number of local and international companies including Valley Longwall International, DB Mining Supply, White Glacier and PSD Global.”

United Sales Group 0418 215 724 www.unitedsalesgroup.com.au

Abbott promises more submarine jobs

PM offered “categoric” guarantee of more jobs.

8 JULY 2015 Manufacturers’ Monthly

PRIME minister Tony Abbott has given an “absolute guarantee” of more jobs in South Australia, regardless of who wins the controversial “competitive evaluation process” (CEP) to build the country’s next submarine fleet.

“Whatever happens, I can give an absolute, categoric guarantee there will be more sub jobs in South Australia and I think that’s what South Australians understandably want,” Abbott told media.

The issue came up again after an unnamed Liberal MP told Sky News that the Coalition would lose every single seat in SA if the Japanese bid was triumphant in the competitive evaluation process.

Under the CEP, Japanese, German and French companies have each been instructed to submit bids for scenarios of offshore, Australian and hybrid

submarine construction for the fleet to replace the current Collins Class subs.

Independent SA senator Nick Xenophon, who is campaigning for the submarines to be built in his home state, is seeking candidates to run in Liberal SA seats.

Meanwhile, The Australian has raised the possibility of a Japanese/Swedish joint bid, with vessels built in Australia. Sweden’s SAAB – which acquired Kockums, the maker of the Collins Class last year – already has roughly 350 staff in SA. According to the report, the Japan/SAAB build would see key parts of the work done by SAAB. In addition, it would overcome Japan’s need to create an extra shipyard to construct the fleet, and the nation’s lack of experience in exporting submarines.

manmonthly.com.au

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Manufacturers’ Monthly JULY 2015 9

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News&ANALYSIS In brief...

New UNSW engineering precinct University of NSW officially opened its new Mechanical and Manufacturing Engineering Precinct this month, with the completion of the new $67 million Ainsworth building. The redeveloped complex features state-of-the-art refrigeration, laser and mechatronics labs, as well as wind tunnels, a flight simulator, and machines for tensile and compression testing.

Robot market to grow by 2020 Transparency Market Research has predicted the global market for industrial robots will grow strongly in value in the next five years, reaching $US 44.48 billion by 2020. The predicted compound annual growth rate from 2014 to 2020 will be 6.2 per cent.

RMIT, Okuma Australia form alliance RMIT University and Okuma Australia have formed an alliance that establishes RMIT Advanced Manufacturing Precinct as an authorised Okuma machine operation and programming training facility.

The alliance will allow machine operators to tap into the structured extended skills training and knowledge resources of the university at a central location.

Akubra ditches local rabbit skins Hat maker Akubra will start using only rabbit skins imported from Europe. The iconic Australian brand has been importing furs since the 1990s but will now cut local fur processing from its facility in Kempsey on the NSW North Coast. Three to four jobs will be lost as a result.

Cisco (IoE) Centre opens in WA Cisco’s Internet of Everything Centre has been officially opened, and is a three-way partnership between Cisco, Curtin University and Woodside. WA premier Colin Barnett said the centre would position Perth as a global technology leader as it “will assist Western Australia to become a global collaborator in research and innovation.”

Volkswagen factory worker killed A technician was killed at a Volkswagen factory in Baunatal, Germany, while installing an industrial robot. He was pinned against a metal plate after being “grabbed” by the robot. He later died in hospital.

10 JULY 2015 Manufacturers’ Monthly

8,000 SA jobs at risk pre-Holden exit: minister A South Australian government taskforce has met all the state’s tier-one auto suppliers and warned thousands of jobs are at risk leading up to Holden’s 2017 exit from Australian manufacturing.

The Automotive Transformation Taskforce, operating within the SA government’s Department of State Development, had consulted with the major businesses in the state’s automotive supply chain and said the majority were likely to close.

Particularly likely were local subsidiaries of multinationals.

“There should be no expectation that somehow or another there’ll be some alternative big industrial

undertaking or that all the component makers are suddenly going to find alternative markets,” taskforce leader Greg Combet said.

SA minister for automotive transformation Kyam Maher told the ABC that the job losses figure could be over 8,000 leading up to the end of Holden’s manufacturing operations in 2017.

He said there was some hope of winning extra defence manufacturing work, and opportunities within the food and beverage sector as well. “…Food manufacturing has grown every single year for 17 years in a row in SA and we think that’s got a big future,” he said.

What members of our community thought about forecast SA auto job losses Crack Swelling Wow.....took them this long to realise that the subsidiaries of multinationals we going to close.....

Says a hell of alot about the South Australian Government!

All is well!! Nothing to see here...move along.

dumb to keep voting in have not been looking after us.

We should have been into the high profit ones like 4wd and dual cab utes, not utilitarian models Editor’s note: These comments are as received. Corrections have been made for spelling and grammar only.

What do you think?

Go to www.manmonthly. com.au and make a comment about this or any other issue.

tommo I agree they are pretty dumb. We are pretty dumb as a nation just let letting multi-national dictate which cars got made here. WE SHOULD HAVE STARTED OUR OWN CAR COMPANIES and had an australian headquarted multinational car maker.

The major parties we are so

manmonthly.com.au

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Comment

INNES WILLOX – CEO Australian Industry Group

Help everyone get the most from FTAs Free Trade Agreements (FTAs) are intended to benefit Australian companies. But there is a growing perception that manufacturers in particular should be getting more out of them than they currently are. Innes Willox writes.

A

S an Authorised Body under the FTA Certificate of Origin regime, and as a deliverer of Austrade services under TradeStart, Ai Group has a unique perspective as to the reasons why exporters, and manufacturers especially, may not be using FTAs. We’ve given voice to our concerns in our submission this month to the Inquiry by the Federal Parliament’s Joint Select Committee on Trade and Investment Growth into the Business Experience in Utilising Australia’s Free Trade Agreements.

We’ve argued that while FTA gains should be enjoyed by Australian importers, exporters and investors across the board, there are many examples of FTAs not delivering a competitive advantage to manufacturers.

The submission identifies that the most common reasons for not engaging with FTAs include low levels of understanding of how FTAs work; difficulty in accessing information; non-tariff barriers having a greater impact on manufactured exports; and FTAs not meeting exporters’ needs.

The first and most significant barrier, particularly for Small to Medium Enterprises (SMEs), is accessing information.

The significant benefit of all FTAs is the reduction of tariffs. However, information on the rate and scale of tariff reductions and the rules that companies must meet to qualify for ‘Australian origin’ are often very difficult to obtain. Many manufacturers report that the tariff saving is not worth the administrative burden. And others miss out because they assume the benefits are received automatically.

The regional FTA architecture also causes confusion for exporters. For example, once the Trans Pacific Partnership (TPP) is in force, exporters

manmonthly.com.au

“

Exporters will soon have three different FTAs to use to export to Malaysia …

will have three different FTAs to use to export to Malaysia.

When presented with this information, the first question from exporters is: “Don’t they cancel each other out?”

The answer of course is that they don’t. It is the responsibility of the exporter to analyse which FTA provides the best benefit for their product. Currently this information is contained in the respective texts of each FTA. As an organisation authorised to issue Certificates of Origin for preferential agreements, Ai Group is able to witness firsthand the administrative stress and time pressures that the mandatory regime puts on companies, particularly SMEs. As such, we’ve recommended that: • DFAT’s new FTA outreach service includes staff with Customs expertise to assist companies with classification and rules of origin; • the proposed FTA portal provides information arranged by market rather than FTA; • the outreach activities are delivered in a variety of modes and with enough detail to assist SMEs in making informed decisions; and • DFAT continue to pursue modern self-declaration regimes under all FTAs. An unintended consequence of both innovation and, in some cases, free trade, is that exporters face incredible non-tariff barriers, particularly in the areas of standards and product registration as well as nationalistic procurement policies.

These barriers are particularly difficult to overcome as they are usually presented as safety or security measures, not barriers.

As such, we’ve also recommended that: • DFAT’s new FTA outreach service needs to collect information on non-tariff measures that can be addressed F N 1 1under 1 3 _the 0 0arrangements 0 _ S A F -of the respective FTAs; and

• DFAT resources should be dedicated to educating Austrade and State Government frontline trade facilitation staff in the provisions of the ChAFTA NTM (China Australia Free Trade Agreement Non-Tariff Measures) review body and they should actively seek input for issues to address.

While we know that there are many businesses using FTAs to improve their competitiveness, there are complex reasons for utilisation levels not meeting expectations.

While better communication will improve take up among SMEs, it won’t address all the barriers to trade 1 that 2 0extend 1 3 - beyond 1 0 - 1tariffs.

5 T0 9 : 2 1 : 2 2 + 1 1 : 0 0 www.aigroup.com.au

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Manufacturers’ Monthly JULY 2015 11

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TechnologyIT@MM Popularity of production software on the rise While ERP and SCM fill most IT industry pages, technology advances in production software is making manufacturers sit up and take more notice. Alan Johnson reports.

O

NCE low on most manufacturers’ IT agenda, production software, including MES, SCADA, CPM and MI, are now playing a far more important role in improving a company’s bottom line.

Schneider Electric’s Riccardo Tenaglia (Manager, MES Enterprise Solutions) is optimistic about manufacturing in Australia and the industry’s uptake of the latest technologies.

“We are now seeing signs of growth and vitality that we haven’t seen in a long time. And it’s not just coming from the large multinationals investing in existing infrastructure.

“We are seeing organisations, backed by Australian investors, taking advantage of the climate we are now inM with A 1 a1reduced 1 4 _ 0 Australian 0 0 _ B O dolK lar, and becoming far more active and

building brand new processing plants, for example.

“We are seeing strong investment in our dairy industry, such as the A2 milk company’s new production facility in western Sydney, and surprisingly following on from the Government’s manufacturing transition program.”

Tenaglia said the recentlyreleased list of companies receiving grants showed there is a large number of multi-million dollar investments by Australian organisations in Australian manufacturing.

“It’s fantastic to see, with success breeding success. Manufacturers who have been waiting in the wings are now making their move,” he said. we1 are 1 “The 2 0underlying 1 4 - 1 0 theme - 0 8 T 2 : 5 1 : 5 4 + 1 1 : 0 0 seeing is innovation and technology,

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MES is described as the enabler for organisations to manufacture in today’s environment. with Schneider playing a leading role.”

Tenaglia describes MES as the enabler for organisations to manufacture in today’s environment.

“But what is key to any MES software implementation is having a foundation, what we call an infrastructure layer: Systems Platform.

He said this infrastructure layer is very important because it needs to host a truly integrated historian, which is important when reporting on areas such as water, air, gas, electricity and steam.

“But as an MES enabler, that software layer needs to understand the plant environment in which the manufacturer is, and model the plant and processes.

“It is this modelling and the concept of standards and developing common models of production lines, or pumps, or steam processes, for example, that really gives companies the strength.

“Once companies have that understanding at their infrastructure layer,

they can then literally plug in the different MES modules.”

MES complexity Tenaglia said Schneider breaks MES complexity down to four key areas of understanding how a company maximise their plant’s potential.

“First we have performance, which encompasses OEE (Overall Equipment Effectiveness).

“No matter where a company manufactures in the world, this is an essential tool to have when it comes to understanding the key metrics associated with delivering performance value.

“Secondly, and probably the most important, is a transaction engine, which for us is called MES Operations, which leverages that model that companies built in their infrastructure and allows them to understand the transactions between different machines on a production line, for example.”

Tenaglia said once companies understand those transactions, and manmonthly.com.au

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they can impact on those transactions, they can build up a genealogy of what products went into the final product, where they came from and where they went to.

“This information can be vital when companies have to carry out recalls on a product, which can be very costly,” he said.

Tenaglia says the third area is quality and how companies are producing products compared with manufacturing specifications.

“The fourth, and probably the most complex area of MES, is integration up into an ERP system.

“However, we are seeing how that can now be simplified using XML standards that allow for and describe the way any MES systems communicate with ERP systems.”

He says the standards have come a long way, with some of the larger multi-national companies well ahead of the pack in defining what those messaging instructions need to be for their P A 0business 7 1 5 _so0 they 0 0 _can S Ivery E2 quickly roll out those applications.

manmonthly.com.au

“One organisation we are working with, who has 486 plants world-wide, has developed their standards to build their models with our software.

Then they are able to do a five-day deployment of the performance module within a plant, which traditionally for MES was unheard of.

“But if companies can get their standards right, build the right objects for their plant and processes, then they really do simplify a lot of that complexity,” Tengalia said.

Tengalia said the value from all this data comes when companies plug that controller into their historian, which captures the data in context of their plant model, and that’s the way that they start to enable not just the traditional operators down at the manufacturing layer, but also the operations people who can very quickly analyse and make sense of all that data that is sitting within that historian space.

“And with more and more younger, less experienced people within organisations, it is important producHistorian critical tion data is shown in a multitude of With this explosion of data, he says different ways. an integrated historian is critical “Mobility is key, so one of the to capture that data in context of a things we have done to address this is plant. to make sure that the plant visuali“For example, before when sation in the infrastructure layer is controlling a motor, all an engineer typically in HTML 5. Because users needed to do was to be able to stop and start it, but now with modern mo- can develop a graphic in HTML 5 that can be used on an iPad, on a tor controllers there 30 to 40 bits of surface tablet, and a traditional PC. data that are available. The SCADA Companies are not locked to any one system probably needs a handful of those, 2 2the 0 1rest 5 -are 0 7very - 0valuable, 6 T 1 4 but : 0 3 : particular 0 4 + 1 0 device.” : 0 0 With machines becoming smarter to other people in the organisation.”

and smarter, Schneider is developing modules that support PacKML, which is an XML language that allows machines to talk to each other and understand the different states machines are in.

“The more we can embrace those types of standards, the easier it becomes for companies who are setting up packaging lines, making it almost like building Lego.”

Tengalia said with PacKML, companies can buy their filling machines and packing machines from different vendors and simply plug them in.

“They can talk to each other in the same language and understand each other straightaway – impressive.”

[Alan Johnson is Manufacturers’ Monthly’s former editor.

He has researched and written about all aspects of the Australian manufacturing sector for over 25 years] Schneider Electric 1300 369 233 www.schneider-electric.com.au

Manufacturers’ Monthly JULY 2015 13

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Technology IT@MM Is manufacturing redefining itself?

Technology now has such a big influence on industry that it could be driving how manufacturing is being repositioned around the world. Alan Johnson writes.

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ORE of an evolution rather than a revolution, many industry observers believe manufacturing is slowly redefining itself, and it is happening so slowly that most don’t realise it is happening.

Rajiv Ghatikar, VP and GM of ASEAN/Australasia with Siemens PLM software, said the pace of new technology advancements is increasingly high and the interaction between humans and technology is ever more intuitive.

“In the near future, the global manufacturing sector will look nothing like it does today, with profound changes coming in products and the way they are designed and manufactured,” Ghatikar told Manufacturers’ Monthly.

He said manufacturers need to adopt digital as a fundamental strategy to realise innovation and gain a competitive edge “For me manufacturing is driven by two forces; innovation and cost.

Because if you can’t make a product cost-competitively, someone tomorrow is going to make it cheaper than you can.

“And if you can innovate, appropriately, I think you will have the opportunity to outshine your competition.”

Increasingly, interaction between humans and technology is intuitive.

same location, so that it could influinnovate. He also mentioned that ence production and be more effecit is readily available to Australian tive, but that has changed. manufacturers.

“Today you can have technology “Today German manufacturers are that enables collaboration so seamusing the same software, using their lessly across locations and across IP to innovate in the same manner by supply chains that manufacturing is developing new products and being redefining itself. more of a design company catering “Software knows no boundaries for manufacturing in other counregarding geography. It can penetrate tries.” through and enable users in any part He said Australia could be one of of the world to do that. Many successthose, where all the brain capital and ful companies are already doing it,” the R&D is here, with the manufacGhatikar said. turing occurring in a cost competitive He says Siemens is ideally poenvironment.

Technology available sitioned to help this development “Traditionally production had Ghatikar pointed to the technology MM0 4 1 4 _ 0 0 0 _ I N D 1 2 0 1 4 - 0 3 - 1 3 T1 2 : 3 3 : 1 4 + 1 1 : 0 0 because of its wide range of technoloto be very close to the brain, in the German manufacturers are using to gies, including PLM. “With products and business models and legacy positions changing so rapidly, whatever gave you a competitive edge five or ten years ago, may no longer give you any sustainable advantage unless you can continue to innovate.

We ooffer We ffee cost effective solutions for your automation ff “While technology is the enabler tech te chno noll technology needs Australia wide. for that, you do need the people to At IIS&E S&EE we specialise in systems integration and S& have the foresight and the paradigm auto au toma ma automation projects, big and small. shift to embrace that.

For mor more information phone us on 07 3856 2232.

Ghatikar said by realising innovation in this very fast changing world INDUSTRIAL SOFTWARE & ELECTRONICS with the Internet of Things, cloud Tel: (07) 3856 2232 Fax: (07) 3355 1012 technology, and 3D printing, as well E-mail: info@industrialsoftware.com.au Web: www.industrialsoftware.com.au as expanding markets and produc-

SCADA SYSTEMS PC & PLC PROGRAMMING

14 JULY 2015 Manufacturers’ Monthly

tion capabilities, the possibilities are endless.

“The key to innovation in today’s complex world is adopting a strategy for digitalisation where the digital thread ties together all phases of the product’s lifecycle.

“Siemens is delivering the Smart Innovation Portfolio to underpin this new environment and allow companies to realise their innovation.”

The platform connects end users, where all the brain and the capital sit.

“They are working on intelligent, ever dynamic models, which are all about connecting and working collaboratively to produce innovative products.

Ghatikar said PLM is a great place for manufacturers to start the innovation journey. Manufacturers can start anywhere on the cogs of the PLM wheel, he noted.

“It could be in design, could be shopfloor production, could be in engineering, could be in change management, which ever part of the ecosystem they want, and then once they start, they can expand vertically or horizontally or whatever way to get the coverage of the entire PLM benefits to whatever process they are trying to influence.

“PLM doesn’t have a start or end point, it’s a continuance and our solutions cover a very wide spectrum,” Ghatikar said.

Product design According to Ghatikar, Australian manufacturers should be investing more in product design.

“Designers need to be able to translate an idea into a software model very quickly.

“Rather than pen and paper, the designer should be using a sketching tool to produce a design which can be used, then reused later. That is where a lot of the speed to market benefits arise.

Ghatikar explained that most of the cost of a product is influenced at the design stage.

“For example, 70% of the raw material costs of the product are manmonthly.com.au

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intrinsically decided by how it is designed.

“A PLM tool can help designers put some parameters on an idea in terms of what it costs and the material consumption and how they can make it more cost effective and be more competitive,” Ghatikar said.

Manufacturing’s future When it comes to the future of manufacturing in Australia, Ghatikar suggested we look at what Singapore has achieved in recent years, using it as an example of how private enterprise and Government can work together.

“Like Australia, Singapore is a very expensive location to manufacture, and a very good comparison reference point. And like Singapore, Australia has a lot of highly skilled people, which a lot of other countries don’t have.

He explained that the Singapore government has a large stake in shaping what the country does to become a ‘smart’ nation, which includes how intelligently the country wants to be connected and MA 0 7 1 5how _ 0the 0 0Internet _ K E Eof Things is shaping.

“Where companies take the com“It goes beyond manufacturing; it ponents, not the finished product, goes to the point where everything and put it back into the production that has data can interact with somesystem.” one or something else to make the Ghatikar said Singapore believes whole system more efficient.” this is important for a number of “To start, the government wants reasons; companies save on material companies to come up with platforms and manufacturing costs, plus they that enable a ‘smart’ nation. already have something that worked.

“For example, Siemens PLM Soft“They can also learn from its lifeware is working with the Singaporean cycle data on how it served its part, Government on a remanufacturing and use that information to make it facility that helps manufacturers more effective.” improve their environmental impact Ghatikar said it’s 30 to 40% by re-using old components.” cheaper to introduce that product The Advanced Remanufacturing back into the lifecycle of another Technology Centre (ARTC) is the product, than to start with raw first in Asia dedicated to testing and material and making it again to new developing technologies that can give specifications. a new lease of life to parts that might “As well as much cheaper, the part otherwise be discarded. has intelligent data with it that can It involves finding ways to extend be used to prevent those same issues the life of a product by restoring or in the next journey that it underimproving its components, which is takes,” he said. a more sustainable and affordable The Singapore government is approach than making new products sponsoring the project, with Siemens from scratch.

PLM Software and other companies Ghatikar explained that remanusupporting them over a five year facturing is all about recycling someat1the 1thing 2 0 5 -end 0 7of- its 0 life 1 T in 1 terms 0 : 4 of 1 : 2 term.

5 + 1 0 : 0 0 According to a recent report its components.

PROBLEM DESIGN EXPLORATION CAD CONCEPT SAMPLE 3D PROTOTYPE CAST PRODUCTION SAMPLES SOLUTION manmonthly.com.au

by Global Industry Analysts (GIA) the automotive remanufacturing market alone will reach a staggering US$104bn this year.

Ghatikar said the long-term project is just one example of what the Singapore government is doing to be a ‘smart’ nation and an example of how manufacturing is reinventing itself.

For Australia, Ghatikar said it’s the responsibility of government and private enterprise to jointly define their roles and play to whatever the local industry requires.

He believes the food industry is one area the Australian Government and private enterprise could explore.

“Australia has an abundance of land, and while much of it is not productive today for a number of reasons, I think there is an emerging trend that the food industry could be Australia’s next hot spot on an otherwise difficult economic landscape.

“What is needed is a paradigm shift and the capital to invest in that next frontier,” Ghatikar said.

Siemens PLM Software www.plm.automation.siemens.com

YOU E WAY N H TIO H IT T U W L F SO ’RE PO O E T T WE ed to S M Y el? Ne E v le R elp.

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CH .au E E 4 K h.com 0 0 13 w.keec ww Manufacturers’ Monthly JULY 2015 15

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Safety Seven steps to fire safety As more manufacturers undertake rationalisation programs and centralise procurement services, the conversation around fire protection is changing. Bill Adamopoulous writes.

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ANUFACTURERS are looking to minimise inconsistencies across sites and capitalise on the economies of scale associated with using one national fire protection provider.

As part of a centralised approach, the management of fire safety processes and systems is shifting.

Category managers are overseeing the appointment and management of a fire protection provider, while plant managers are responsible for the day-to-day supervision of fire safety procedures on site.

Fire protection is a shared responsibility and it is vital that all those involved in fire safety at manufacturing plants understand and invest in adequate fire protection solutions.

The impact and cost of fire in a manufacturing facility should not be underestimated.

A fire incident can result in significant staff injuries, fatalities and costly damage that may mean the end of a business.

Machines are typically custom built to produce very specific products. If damaged or destroyed in a fire, they may take months or even years to rebuild, resulting in significant down time and lost revenues.

Wormald offers the following fire safety recommendations:

5. Maintain fire equipment

1. Establish responsibility Generally, under Workplace Health and Safety (WHS) legislation, officers must ensure that the business meets its WHS obligations and can be held personally liable for failing to do so.

It is important that clear systems are established for the management of fire safety, including exercising due diligence to ensure appropriate policies, procedures, safety practices and resources are in place.

If responsibility is shared, the parameters for each manager should be clearly communicated and defined.

2. Understand regulations Fire safety is heavily regulated and it is the responsibility of every manufacturer to comply with appropriate legislation and Australian Standards.

The national building code, Australian Standards, the principal set of

WHS regulations in each state and state and territory legislation governing the maintenance of fire protection systems are central to fire safety.

Typically, these documents stipulate that the person in control of a workplace, business or undertaking is responsible for ensuring that fire and explosion risks are minimised, appropriate fire protection is available and regular maintenance is conducted.

3. Conduct a risk assessment A detailed understanding of fire risks and hazards can help to minimise fire and explosion risks and identify a suitable fire protection solution. The most common fire risks in manufacturing are machinery, stock or parts stored on site or in warehouses, and the manufacturing process (for example, the use of heat or hazardous gases).

4. Install fire protection solution A range of fire protection solutions are available for manufacturing sites, including basic fire extinguishers, water spray deluge systems, gas systems and foam systems. It is important to install a solution that meets the specific requirements of the site. When deciding on a solution, some key considerations include the materials being used, size of the site, number of staff and legislative, regulatory and any insurance requirements that apply to the manufacturer’s particular circumstances.

16 JULY 2015 Manufacturers’ Monthly

A high level of reliability is essential when it comes to fire protection. Fire protection systems and equipment should perform to the standard to which they were originally designed and installed. Regular testing can validate the functionality of the systems and equipment and help to uncover any faults or issues that may cause malfunction. Australian Standard AS1851 - Maintenance of fire protection systems and equipment recommends that fire protection systems be regularly tested, serviced and maintained.

6. Re-vist processes A confident team that is able to respond appropriately in the event of a fire is an invaluable investment and can substantially reduce the impact of a crisis. Emergency evacuation procedures should be regularly reviewed, and everyone working in a manufacturing facility should be trained on how to respond appropriately to a fire incident and use fire protection equipment correctly. This includes briefing new employees and regularly conducting refresher training for existing staff.

7. Find a fire protection provider Time is the biggest challenge facing manufacturers when it comes to fire safety. It can be difficult to find time to focus on fire protection and as a result, it can often be overlooked.

Outsourcing fire protection to a reputable provider can help to ensure compliance requirements are met and changes in legislation are closely monitored.

The Fire Protection Association of Australia’s Providers of Choice are reputable suppliers which are required to comply with strict codes.

[Bill Adamopoulous is National Accounts Group Sales Manager, Wormald] Wormald 133 166 www.wormald.com.au manmonthly.com.au

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Tilt switches

Easy to assemble snap up design.

Rapid spill protection and containment ENWARE’s portable berms offer spill containment solutions for fuels, chemicals and hazardous liquids in construction, mining, petro-chemical, energy, transport and general industrial applications.

Designed for the protection of workers and the environment, the tough and easily erected Stinger range of berms include the Stinger Snap Up Berm, Stinger Yellow Jacket and the Stinger Snap Foam Berm (with drive in, drive out capability).

The range features excellent rip, tear and puncture resistance for demanding applications or terrain and the added

protection of Ground Pad and TracMat. Further features include an easy to assemble snap up design, lap joint welds, fuel/chemical resistant capabilities.

According to the company, its spill containment and dispensing solutions reduce clean-up costs and can minimise the risk of slip accidents at construction sites, farms, factories, mines, petro-chemical sites, public utilities and machinery wash down and maintenance facilities.

Enware Australia 1300 369 273 www.enware.com.au

Torque sensors in robotics

Fujifilm for pressure distribution

Low Ohm meter THE MPK-253 digital low resistance ohmmeter is a portable, microprocessor-controlled instrument used to measure resistances of switches and circuit breaker contacts, transformer and motor windings, wire and cable, joints in busbars, etc., using test currents from 1mA up to 10 A. The Kelvin-type, four-terminals measurement principle, eliminates errors caused by lead and contact resistances.

Resistance readings are shown in the alphanumeric display. Resistances of up to 200Ω, with a resolution down to 1µΩ can be measured.

The RS232 port provides data to a printer, PC, or any data logger.

The open circuit output voltage is up to 10V, depending on the selected test current, reducing the stabilisation time for the test current when highly inductive elements (especially transformers windings) are measured. manmonthly.com.au

Force gauge for medical research Bestech Australia

Operation is intuitive.

Power Parameters 1800 623 350 www.powerparametres.com.au

U14, 44 Garden Blvd

MEL.: 03 9540 5100

Dingley VIC 3172

SYD. : 02 9624 4233

Enquiry@bestech.com.au www.bestech.com.au Manufacturers’ Monthly JULY 2015 17

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Safety Single-use gloves ANSELL has released its Microflex 93-856 high visibility single-use gloves for workers in high risk, heavy duty environments where there is a danger of contamination from hazardous substances, pathogens and other harmful materials.

With a second skin feel and exceptional tactile sensitivity, these single-gloves have been developed for the needs of people involved in crime scene analysis, emergency services, and anyone who may come in contact with chemicals or corrosive materials.

Ansell says its heavy duty Microflex 93-856 gloves resist a variety of industrial chemicals for longer periods than other nitrile disposable gloves, while an extended cuff offers an increased level of protection in an exam grade glove in the highly sensitive wrist and forearm areas. Powder-free and not made with natural rubber latex, these gloves help protect from Type I skin allergies, skin irritation and dryness caused by latex.

The gloves are said to deliver chemical splash resistance to a variety of industrial chemicals M A 0for9 longer 1 4 _periods 0 0 0 than _ P most I E other disposable nitrile gloves.

18 JULY 2015 Manufacturers’ Monthly

Boots with metatarsal protection

Have second skin feel for tactile sensitivity.

The textured fingers enable the wearer to maintain a strong grip that helps workersto carry out tasks with superior comfort, performance and protection, while the bright orange colour allows hands to be visible in low light situations and at greater distances, resulting in increased safety conditions for a variety of work environments.

Ansell 1 2 0 1 4 - 0 8 - 1 2 T 1800 1 1 :512 1 746 8 : ppe.ansell.com.au

OLIVER FOOTWEAR has released an (All Terrain) AT 55 Series of safety boots with metatarsal protection that addresses both categories of foot injuries.

The Oliver AT 55-236 Wheat Lace-Up Met Boot has a PORON XRD Extreme Impact Protection metatarsal guard which protects the foot against falling objects.

The high performance molecules of this industry leading material creates a unique protective shield and absorbs up to 90% of the most intense force – hit after hit.

Metatarsal guard protects against falling objects.

And the non-metallic insole built into the sole of the boot reduces the possibility of injury caused by sharp objects that may penetrate and pierce the sole.

The specially designed outsole tread pattern provides excellent slip resistance and the boot is certified by a National Association of Testing Authorities (NATA) accredited laboratory with the highest level of certification under Australian Standards.

The sole provides heat resistance of up to 300°C of surface contact, is resistant to a variety of oils and acids, and has Electrical (EH) Hazard protection in accordance with industry standards.

Oliver Footwear 03 5320 0200 3 3 + 1 0 : 0 0 www.oliver.com.au

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Proportional valves and process control ACCORDING to Festo, proportional valve technology in process automation offers a high level of flexibility and control quality. A complete system supplied by Festo and installed in the new technical centre of pharmaceutical company Boehringer Ingelheim’s new technical centre in Germany demonstrates the performance which modern pneumatics can deliver.

Overall, noted Festo, a total of VPPM on CPX/MPA. 15 chemical reactors supply the required quantities of substances within the 2,700 m2 pilot plant that includes 12 inert gas stations, 40 valve terminals and around 200 automated ball valves and shut-off valves.

Festo proportional valves in combination with flow meters and pressure sensors are used in the new technical centre to supply gas lubricated mechanical seals. When connected to the process control system via the CPX and the integrated fieldbus node, the valve terminal MPA facilitates central monitoring of the gas consumption of the seals and control of the pressure as a function of the internal tank pressure. This continuous condition monitoring also reduces maintenance costs.

By integrating Festo proportional technology, Boehringer Ingelheim is able to enjoy a number of advantages. The multi-sensor control of the VPPM with integrated pressure sensors and a PID controller provides high-quality control results and robust control behaviour. The fact that the control cabinet is installed in the technical corridor instead of the reactor room saves money when EX protection is required.

The installation can now be controlled much more flexibly and easily said Festo.

What is more, Boehringer Ingelheim was able to reduce installation costs compared with the technology previously used.

Festo 1300 88 96 96 www.festo.com.au

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ENPAC smarter spill containment solutions Purpose built for a safer workplace.

Smarter design and construction to give superior strength, larger footprint captures more liquid.

Manufactured for the highest quality, chemical resistance and a longer life.

IBC 2000i Versatile IBC storage and dispensing unit  Large 1457L sump  3600kg UDL  Integrated pail holder design for quick, easy dispensing  Made from virgin polyethylene with UV inhibitor Order Code: E5469-YE-D

4-DRUM POLY-SLIM-LINE™ Low profile spill pallet with a wide footprint design for enhanced safety     

2720kg UDL Forkliftable from all sides 249L sump capacity Integrated drain hole & plug Made from virgin polyethylene with UV inhibitor

Order Code: E5400-YE-D

STINGER BERM™

Welding helmet 3M’s new Speedglas auto-darkening welding helmet series 9100XXi is built on 30 years of expertise and is designed for professional welders who require comfort, protection and performance.

When combined with the peripheral Speedglas SideWindows, it gives welders the largest viewing area amongst auto-darkening welding helmets currently available on the Australian and New Zealand market.

The new “True-View” lens delivers a greater degree of definition and natural colour. Shades of blue and red as well as contours and edges are more visible due to improved welding lens optics. The new “Grab-and-Go” motion detector senses movement and instantly activates the welding lens to the welding setting that was last used.

A “One-Touch” external button activates grind mode. Another quick push reactivates the auto-darkening welding settings. manmonthly.com.au

Compact large-scale spill containment  Rip, tear & puncture resistant  Easy to assemble snap-up design  Lap joint welds for maximum strength  Fuel/chemical resistant  Wide range of sizes & capacities Order Code: E4801-BK-SU

contact us for the complete catalogue Motion detector senses movement, activates welding lens.

It is available with flip-up functionality, head protection, hearing protection and with powered or supplied air respiratory protection.

AWS 02 9439 0111 www.awsi.com.au

www.enware.com.au/enpac call 1300 ENWARE Manufacturers’ Monthly JULY 2015 19

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Compressors Why individual assessment pays dividends Should you be investing in a dry-running or an oil-injected compressor? Beth Wood highlights the major advantages of each design and the applications for which they are best suited.

W

HEN choosing a new air compressor, it is important to understand the differences between compressors that are fluid-cooled and dry-running.

Fluid-cooled means that a fluid – often oil, but sometimes water – is injected directly into the compression chamber.

Without this internal cooling mechanism extremely high temperatures occur during the air compression process.

The injected fluid therefore provides a cooling action and also absorbs any contaminants in the air.

In comparison, the compression chamber is not normally flooded with a fluid in dry-running systems.

As there is no fluid to deliver the cooling action, the internal compressor temperatures are significantly higher, especially when operating beyond a certain compression ratio.

To compensate, dry-running compressors employ two compression stages to attain the required pressure.

The first stage compresses the air to an absolute value of around 4 bar.

The second further compresses it to within the range of 9 to 11 bar (absolute pressure).

This extended process, as well as the interim cooling, condensate separation and pulsation dampening, results in elevated energy requirements. Subsequently fluid-cooled compressors are more efficient, delivering the same output with a single compression stage and lower temperatures.

Criteria So what criteria is relevant for determining which system is optimal in any given case?

It is often assumed that the quality of compressed air required should be the main criterion. This is erroneous, as compressed air treatment is almost always required to ensure quality.

20 JULY 2015 Manufacturers’ Monthly

Seen from the exterior, compressed air stations employing dry-running rotary screw compressors cannot be distinguished from stations with oil-injected rotary screw compressors.

In fact, compressed air quality is defined according to a precise, graduated scale in ISO 8573-1, where smaller numbers indicate higher quality classes. Compressed air quality classes below Class 4 (for particles), 4 (for oil) and 6 (for moisture) require that all types of compressor employ a suitable form of downstream compressed air treatment to achieve the required quality.

The type of compressor technology used is therefore not the main factor in determining compressed air quality, and so should not be the main factor in deciding between a dryrunning and fluid-injected design.

There are four key criteria that should however be considered.

PRESSURE – The range of the required pressures or compression ratios should be considered.

Dry-running compressors are highly advantageous for compression ratios of 1:2 and 1:4 (applications that require absolute pressure values of 0.5 to 4 bar).

In this lower pressure range, the compressors deliver their output with just a single compression stage, requiring no additional compressed air cooling.

In addition, the resulting warm air

is often advantageous for the compressed air applications themselves (e.g. pneumatic transport of cement).

The situation changes once the compression ratio exceeds 1:4. Beyond this value dry-running systems require a second compression stage, making the specific output of fluidcooled systems superior (when oil is the fluid used).

Based on specific output, in the pressure range from 1:4 to 1:11, oil-injected compressors are more efficient than dry-running ones.

They can also deliver a greater

The differences between the two systems are evident inside the enclosure; for example, dry-runners have two compressor stages.

range of higher pressures, easily providing compression ratios up to 1:16.

Conversely dry-running compressors require two stages beyond the relatively low ratio of 1:4 and even then are only capable of exceeding compression ratios of 1:11 in special cases.

SIZE – In addition to the compression ratio, the size of the compressors required is another important consideration when selecting an appropriate technology.

Consider the following comparison of specific output: in the range from 2 to 100kW, oil-injected compressors perform up to 20 % better than dryrunning ones.

However, in the range from 100 to 250kW this advantage falls to around 10% and between 250 and 400kW, falls yet further to around 5%.

Oil-injected compressors cannot operate beyond 400kW in isolation and are installed as tandem systems up to a maximum output of around 800kW. However, dry-running compressors can individually deliver up to 900kW of output.

APPLICATION – The application for which the compressors are destined also plays a key role in selecting the most suitable technology.

If the determination is based exclusively on specific output, oilinjected compressors generally come out ahead.

However, there are some areas where dry-running compressors deliver certain technical advantages, especially when the nature of the work processes themselves requires high temperatures.

An example would be transporting cement and conveying granulates. In these cases, the hot compressed air produced by dry-running compressors – which can reach temperatures of 200°C and beyond – is a huge benefit as the heat is readily available and does not need to be supplied separately, saving energy costs.

COSTS – A more varied assessmanmonthly.com.au

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ment results when the situation is examined from a cost perspective, taking into account the investment, acquisition and maintenance costs.

In terms of acquisition and energy costs, oil-injected rotary screw compressors are considerably less expensive than dry-running systems, yet they are slightly more expensive when it comes to maintenance (comparison based on 4000 operating hours over five years). In all other respects the costs associated with each system are comparable.

In summary, oil-injected systems offer decisive advantages in terms of specific output and costs while dry-running systems provide certain benefits in specific output ranges and for some specific applications.

With a number of variables to consider, it is clear that an individual assessment is the only way to go.

[Beth Wood is Marketing Manager with Kaeser Compressors Australia] Kaeser Compressors Australia M A 0 7 1 5 _ 0 0 0 _ 03 A 9791 T L 5999 www.kaeser.com.au

Lifetime warranty for air compressor airend SOUTHERN Cross Compressors now provides a lifetime warranty on the airend of every single or 2-stage KHE series compressor package delivered after May 31, 2015.

The screw airend is the most expensive and critical part of any rotary screw compressor, with failure often leading to massive maintenance and downtime expenses. The company will repair or replace the warrantied airend for the unlimited life of the compressor regardless of time or usage in operation.

Mark Ferguson, CEO of Southern Cross said this initiative represents an enormous step forward in the compressed air industry.

“The confidence we have in our screw airend, the heart of the compressor, represents a massive change in industry thinking, driven by the outstanding record Southern Cross will repair or replace the warrantied airend for the unlimited life of the compressor regardless of time in operation. of reliability of our screw compressors currently in the field.” company has addressed this by offering He said the only proviso is that customSouthern Cross 03 8769 2820 1ers must 2 0 1maintain 5 - 0 the 6 - warranty 1 9 T 1by4ensuring : 4 7 : 5 ‘Locked 2 + 1 0in’: fixed 0 0 price servicing for the first five years of the new compressor’s life. the compressor is correctly serviced. The www.southerncrossaircompressors.com.au

SETTING THE BENCHMARK FOR BEST PRACTICE We are the only compressor manufacturer with ISO 22000 food safety system certification. For quality, safety and reliability our oil-free compressors offer peace of mind.

Learn more NOW! Call 1800 023 469.

Learn More

Man Montly half page July 2015.indd 1

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Compressors

VSD compressors produce the exact amount of air needed to meet the plant air demands.

Latest VSD+ compressors can provide savings of 50%.

More than one path to compressor efficiency VSD air compressors coupled with innovative finance options offer manufacturers the potential for lower total ownership costs. Jonas Holmdahl writes.

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claiming to offer energy efficient that compressed air efficiency is at ITH compressed air acsolutions. the top of most company agendas. counting for as much as total A D _30% M Aof N aMfactory’s NPAJ U N _ 1 0 . p Searching df P a for g ethe1right 3 solution / 0 5 / 1 0 , 9At : the 2 3 topAofMthe pyramid for can be difficult, with many companies energy efficient compressed air soluenergy consumption, it is no wonder tions is Variable Speed Drive (VSD) technology, which is basically a way to control the speed of an air compressor motor and therefore amount of air produced.

By speeding up and slowing down the motor the compressor can produce the exact amount of air needed to meet the plant air demands, as opposed to running at full speed and then idling until the storage capacity is used before running at full speed again like a traditional compressor.

However, what most people don’t realise is that the ability of the compressor to slow down to as much as 20% of its full speed is paramount in ensuring that the full benefit of VSD is realised, and only the best quality systems with motors and components specifically designed to operate this way can achieve this level.

Up until recently, a VSD compressor with up to 20% speed turn down could on average save 35% of energy consumption. However, the latest VSD+ compressors, produced by Atlas Copco Compressors, will now provide average savings of 50%.

The VSD+ compressors offer improved performance, silent operation (down to 62 dB(A)) and a compact

22 JULY 2015 Manufacturers’ Monthly

footprint, thanks to its vertical drive train design.

The heart of the VSD+ is an interior permanent magnet motor, directly coupled to Atlas Copco’s best-in-class screw element.

While the initial purchase price is important, the quality of the compressor is also important and so are the customer benefits that it brings.

Jeff Treble, Business Line Manager for Industrial Air at Atlas Copco Compressors said the company’s VSD technology is unrivalled in the marketplace with VSD+ and its own Neos inverter drive built specifically for compressor applications.

“This gives it the ability to withstand the sometimes harsh conditions that air compressors must operate in,” he said.

He admitted that, with businesses looking hard at expenses, the pricetag is often the deciding factor when buying equipment.

However, he explained that Atlas Copco can help customers reach their potential by reducing energy consumption; and becoming more efficient.

[Jonas Holmdahl is Communications Business Partner with Atlas Copco Compressors Australia] Atlas Copco Compressors Australia 02 9622 3409 www.atlascopco.com.au manmonthly.com.au

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Metalworking Press brake delivers top speed in a small space

The press brake is portable.

AVAILABLE from LMC Laser Service, the Bystronic Xpert 40 press brake is an innovative speed machine which enables users to bend small parts quickly and cost-effectively.

Many users bend small parts on press brakes that are far too large. Such bending requires only a third of the machine’s press capacity and bending length.

This is not efficient. What these users are missing is a small, portable machine.

With a bending length of one meter, the Xpert 40 can deploy a press capacity of 40 tons.

This small press brake has a footprint of only 2.5 square meters.

In the smallest space, the press brake reaches a bending speed of up to 25 millimetres per second. This means users can bend small parts three times faster than on a large machine.

The press brake is portable which is ideal for when space is tight and capacities fluctuate.

For example, it can be positioned directly adjacent to a laser cutting system, to temporarily improve the interface of the laser cutting and bending production flow. Afterwards, it can be moved to a position near a turret or powder coating line.

The press brake is fully functional and can be supplied with all the options available for large

format press brakes, including Observer and ByVision Voice Control.

“A growing demand for integrated monitoring functions has become apparent amongst our customers,” explained Karsten Trautvetter, Bending Product Manager.

Hence, Bystronic is now also offering the proven Observer remote monitoring system for press brakes.

With the support of cameras, the remote monitoring system enables remote monitoring that keeps users up to date about the operating status of their systems and how the processing of orders is progressing. It is accessed using webenabled terminals, such as notebooks, tablet computers, and smartphones.

With ByVision Voice Control, the most important operations on Bystronic press brakes can now be executed conveniently by voice command.

On average, the operator spends two hours per shift carrying out corrections on a press brake’s control unit. With voice control he/she can significantly reduce this non-productive time. Therefore more parts can be produced per shift.

LMC Laser Services 03 9555 5525 www.lmclaser.com.au

SRP Player CAM Software upgraded ROLAND DG Corporation has made its SRP Player CAM software compatible with the Roland DG monoFab SRM-20 desktop milling machine.

With this new compatibility, the software, which is currently bundled with other Roland DG 3D milling machines such as the MODELA MDX-40A and MODELA PRO II MDX-540, will come standard with the SRM-20 as well.

This software is intended to simplify everything from reading 3D CAD data to setting milling requirements. It enables users to generate optimised tool path data by simply inputting information according to step-by-step instructions displayed on the screen.

In addition to allowing for faster tool path generation, SRP Player offers other advantages over MODELA Player 4, the software that has been used with the SRM-20 up until this point.

It includes special features that support double-sided milling, as well as preview capabilities that enable the user to quickly and easily check fine details before cutting, ensuring that deliverables come out exactly as intended.

Roland DG Australia 1800 500 119 www.rolanddg.com

manmonthly.com.au

This software, while extremely advanced, is also incredibly user friendly.

Manufacturers’ Monthly JULY 2015 23

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Materials HANDLING Avoiding seven common warehousing mistakes Close attention to people, processes and the warehouse environment are the keys to effectively managing a warehouse. Rob O’Byrne writes.

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O say there is any one single way in which to effectively manage a warehouse would be folly – much depends on the nature of the supply chain and of the warehouse itself.

However, there are a number of common principles that should be applied to manage any warehouse successfully.

Conversely of course, this also means there are many ways in which companies can get it wrong.

Avoiding the following seven common warehousing mistakes will ensure storage facilities don’t generate undue supply chain costs:

1) Holding excess inventory Despite M A years 0 7 1 of 5 encouraging _ 0 0 0 _ A lean BF practice and inventory reduction,

24 JULY 2015 Manufacturers’ Monthly

storing too much inventory is still one of the most common warehousing mistakes.

Wholesalers in particular, seem to find it easy to fall into this trap, often as a result of making huge purchases of a single product to take advantage of bulk quantity discounts.

Reducing inventory levels as far as possible makes a company’s supply chain leaner and leaves less money tied up in stock.

So when those “too good to turn down” discounts come along, it’s worth trying to make arrangements with suppliers to get the large orders delivered in smaller batches.

ficient picking paths through a warehouse will handicap picking rate.

This in turn can impact supply chain cycle times and generate unnecessary labour costs through less than optimum productivity.

Ideally, warehouse employees should be able to complete each picking run at a location close to the dispatch area in the warehouse.

It’s not always easy to create optimal picking routes, but it’s certainly worth taking the time and effort to ensure they are as efficient as possible.

3) Clinging on to paper

While companies might think their small warehousing business is better off keeping things simple, paperwork 12) Not 2 0 optimising 1 5 - 0 6 - 1picking 6 T 1 5 paths : 5 2 : 0 actually 3 + 1 0 has : 0 the 0 opposite effect: bogging down processes and leaving Overlooking the need to plan ef-

companies with the liability of delays through lost or misplaced documents.

Companies will generate more efficiency by switching to digital information storage and transmission.

This doesn’t mean they have to invest in an expensive and over-complicated warehouse management system.

There are plenty of simple, yet effective workflow software applications to be had, all of which will serve a company better today than a trail of paper documents.

4) Lazy housekeeping Messy loading docks, aisles littered with shrink-wrap, overfilled pallets these are all symptoms of a warehouse that doesn’t get enough love.

Apart from the risk to safety, a warehouse operation without good

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specialised, so this is not an area in which to assign staff randomly.

housekeeping is a warehouse without efficiency. This kind of mess creates obstructions, restricting the smooth flow of people and goods through the warehouse.

To eliminate the build-up of mess and clutter, enforce a strict regime of housekeeping, with a certain amount of time given over to cleaning and tidying at the end of each shift.

7) Ignoring staff development

5) Poor OHS management Even a tidy warehouse isn’t necessarily a safe warehouse. Good OHS in a warehouse is about looking for the hidden hazards as well as the obvious ones. The problem is, as long as employees aren’t having accidents, it’s easy to get lulled into a false sense of safety.

This is a common and often regrettable mistake in warehousing, because when somebody does fall victim to an accident caused by unstable racking, for example, the consequences can be lethal.

Warehouses inherently M A 0 7 1 5are _ 0 0 0 _ K EdangerL ous working environments. Getting in

There are a number of common principles that should be applied to manage any warehouse successfully. the habit of reporting accidents and near-misses, analysing the causes and acting to eliminate them, can certainly save costs and quite possibly save an employee from serious injury.

can sometimes suffer from a lack of attention.

The role of goods-in receiving is critical to effective warehousing and is an area which shouldn’t be neglected.

In order to ensure goods-in pro6) Poor goods-in processes cesses are efficiently maintained, When the pressure is on to get utilise dedicated staff and compencustomer orders moving through the 1warehouse 2 0 1 5 and - 0 dispatched 6 - 2 3 T 1on0time, : 5 4 : 1 sate 0 + them 1 0 : well 0 0 for their efforts.

Intake procedures can be quite the inbound side of the operation

Tight budgets sometimes mean training and development activities aren’t priorities. But if a company neglects to identify development needs and provide opportunities for individual growth, high staff turnover is likely.

It costs far less to keep existing employees motivated and engaged, than it does to backfill vacated positions.

So devote time and resources to training and development, even if it means hiring temporary staff on occasion to cover during training.

If companies can avoid or take steps to prevent the seven listed mistakes, they should have a sound foundation on which to build continuous improvement efforts, without spending too much time fighting fires.

[Rob O’Byrne is Group Managing Director of the Logistics Bureau] Logistics Bureau 02 9232 8800 www.logisticsbureau.com

Contact us for a FREE catalogue!

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Manufacturers’ Monthly JULY 2015 25

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WomenIN INDUSTRY AWARDS Women making a difference As the awards season continues, we wrap-up the second Women in Industry Awards which took place in Sydney.

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A total of nine awards were up HE winners of the 2015 for grabs, and each celebrated the Women in Industry Awards achievements of individuals and were revealed at a special companies who are committed to dinner at the Ivy Ballroom late last raising the profile of women. month.

From space engineering experts, More than 200 people gathered in to invaluable mentors, and women in Sydney for the event, in which ladies charge of multi-billion dollar mines, from the mining, manufacturing, the awards night singled out women and engineering sectors were The ABC’s Bernie Hobbs was MC on the night. who have created innovations, driven rewarded and recognised for their productivity, spearheaded change, achievements. awards dinner were double that of and provided social and economic In its second year, the Women in last year. benefits through their fields.

Industry Awards recognises women Cirrus Media Industrials Highlighting the way in which who are leading change in their editor, Cole Latimer, said the companies are more eager than ever chosen field and breaking down barriers M A in 0 3what 1 5 can _ 0 often 0 0 _be G maleR A _ T G 4to0celebrate 1 their 2 0 female 1 5 - 0talent, 2 - 2 both 6 T 1 5 awards : 3 1 :program 4 7 + 1was 1 : important 0 0 in recognising the contributions nominations and attendees at the dominated industries.

being made to the changing face of industry.

“Though female participation has risen across all industrial sectors in Australia, companies are still focusing on more innovative

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attraction and retention strategies to foster this growing talent and support young women working in the sector,” he said.

“Women already working in the sector make up a big part of these support programs.

“They are paving the way for others and achieving great success, and we think this needs to be recognised in its own right.”

Manufacturers’ Monthly would like to thanks the sponsors of the 2015 Women in Industry Awards – Pacific Merchandising (Platinum Sponsor), MMD Australia, BOC, ABB Group, and TMS Consulting. Without their help, the event would not have been possible.

Congratulations to the winners and thanks to all those who took part.

See you again next year!

THE WINNERS Marketing/ Communications award Rosalinda Willcox – Marketing Communications Specialist, BOC Limited,

Advocacy of the Year Suzanne Daubney – Managing Director, Bannister Downs Diary

BDM of the Year

Mentor of the Year Christine Cotton – Regional General Manager, Tyco Fire & Security

Rising Star Kate Francis – Civil Engineer, Hyder Consulting

Excellence in Engineering

Nicolette Hinson – General Manager Business Development and Strategy, Elgas

Christine Charles – Head of Space Plasma, Power and Propulsion Division, The Australian National University

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Excellence in Mining

Samantha Kerr – SCADA, COMMS & Protection Implementation Engineer, Energex

Employer of the Year

MA 0 7 1 5 _ 0 0 0 _ I N F 1 2 0 1 5 - 0 6 - 1 6 T0 9 : 4 8 : 2 2 + 1 0 : 0 0 Cablex Samantha Kerr of Energex was Social Leader of the year.

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ShipBUILDING HI Fraser reaps the spoils of war and peace When it comes to leading from the front, there are not many Australian companies that can match the capabilities and focus of HI Fraser. And it’s these attributes that have made it a niche manufacturing success story, writes Branko Miletic.

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AY back in 2010, Manufacturers’ Monthly reported on HI Fraser and how it had “put Australian manufacturing back on the world map.” This was in response to its extensive and complex work on the then newly-announced Air Warfare Destroyer (AWD) ship build project.

According to the story, HI Fraser was eager to showcase its talents and “saw the AWD project as a unique opportunity for SMEs with strong applied engineering capability.”

Fast-forward to 2015, and the Sydney-headquartered company has certainly continued to lead Australian manufacturing out of the muddied trenches of old-style industrialism – not least in the area of defence manufacturing and maintenance.

Testimony to this is their latest win – both commercially and in terms of accolades – in the form of the Submarine Escape and Rescue Service (SERS) – an in-house designed and built containerised Hyperbaric Suite comprising two Deck Decompression Chambers connected to a TransferUnder-Pressure Chamber.

Basically SERS is a one-off solution for the Royal Australian Navy that contains two air transportable containers that provide the submariners in all seven integrated diving locks of the hyperbaric chambers with environmental control (heating/ cooling/humidity control) as well as diving quality breathing air.

This project alone has in the past month managed to get nominated for two categories in the recent Endeavour Awards along with winning three of the 12 categories in the 2015 Zenith PACE Awards including the coveted ‘Overall Project of the Year’ trophy.

But these wins were neither accidents of convenient statistics nor illusions of creative sophistry; the company that was set up in 1955 has become the poster child of what Australian manufacturing could be.

28 JULY 2015 Manufacturers’ Monthly

SERS trials showing existing dive chambers and the HIF support containers.

Speaking about the AWD project, HI Fraser General Manger Chris Williams noted that, “They are core to our business which is the provision of design, manufacture and maintenance of gas, fluid and waste systems to marine platforms.”

However no company is just the sum of its theoretical capabilities it’s the quality of its staff that also comes into play.

“Ours is a diverse business that needs a contingent of staff that is technically competent, can learn very quickly, fix technical problems, do the difficult stuff – basically be highly technically aware.”

“We, in reality need our men and women to be hydraulic system whisperers,” noted Williams, albeit somewhat jokingly.

And then there is the issue of

Peter Andrews (left) of HI Fraser accepts the Project of the Year Award at the recent PACE Zenith Awards.

diversification. Whilst for Australia’s manufacturing sector, niche manufacturing may be the mother of success, diversification could be seen as her first born child.

For HI Fraser, this diversification has come in the form of a range of defence product-inspired spin-off products such as vacuum toilets for the hospitality industry, the Burrendong Dam Intake Tower and Fixed Wheel Gate upgrade and the Coles Supermarkets EVAC Vacuum Collection System and Condensate Riser improvement.

“Over the past 20 years, we’ve recognised that there’s no barrier to what we can do in Australia. But to be successful, we need to behave like an exporter so as to be able to sell to other Australian companies,” said Williams.

So if the past month is any guide, then HI Fraser is definitely on a trajectory to even greater commercial successes.

HI Fraser 02 9970 7322 www.hifraser.com.au manmonthly.com.au

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Automation Automation: the enemy of employment?

Most managers agree that automation is an important part of their business’s future, though there are worries around the effect on employment. Brent Balinski reports on some recent research and trends, and how they might reshape the industry.

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N early May, China’s Shenzhen Everwin Precision Technology announced it would be deploying robots en masse at its Dongguan factory, with the goal of reducing its workforce from 1,800 to 200.

It was an example of the Pearl River Delta region’s (and China’s) massive effort to increase productivity, adapt to rising wages, and to reinvent manufacturing through automation. The Chinese electronics company would also, with its “allrobot factory”, be doing away with 90 per cent of its workers.

A worldwide rush to automate through robots and other means is well and truly underway. The International Federation of Robotics’ industrial robot sales figures for 2014 won’t be out until late September, but its preliminary report showed annual sales jumping 27 per cent last year. China was by far the biggest buyer, with a 54 per cent increase over the year to about 56,000 units.

The expanding use of computerised help is a hot topic for research, reporting, and speculation worldwide regarding what the future will mean for jobs and lives.

The current edition of Foreign Affairs is themed “Hi Robot: Work and Life in the Age of Automation”, for example. Last year’s best-seller list included The Second Machine Age and The Glass Cage. And news stories on the subject, citing the Oxford University’s Frey and Osborne’s influential 2013 paper – The Future of Employment, finding 47 per cent of US jobs could be replaced by computerisation within 20 years – have become fairly regular.

Last month, a Committee for manmonthly.com.au

Economic Development of Australia paper, Australia’s Future Workforce?, used Frey and Osborne’s research to model that 5 million Australian jobs had a high probability of being automated within 10 – 15 years.

“Stories come from people who see manufacturing around the world who say that we’re not as advanced as our first-world competitors,” explained Mark Goodsell, the Australian Industry Group’s NSW director.

“Or, indeed, some of the emerging nations, like China, who, given their relatively recent expansion in their manufacturing capacity have begun to, in a lot of cases, adopt the latest technology.”

The willingness to invest seems to be acknowledged, however, and there are signs that, like everywhere else, interest in is picking up. Examples of this include the establishment of a third local partnership by collaborative robots company Universal Robots last month, after launching here only last year.

And a Hall & Partners Open Mind survey of 100 manufacturing executives last year for The Australian found 67 per cent believed “automation [was] the future of manufacturing”.

According to recent survey results by corporate advisory firm Grant Thornton, 49 per cent of Australian businesses (including sectors other than manufacturing) were planning to invest in automation over the next 12 months. This wasn’t very far behind a global average of 56 per cent.

Will all our jobs disappear?

For all its many benefits – such as improving speed, productivity and

safety – there is still anxiety around automation, due mainly to employment concerns.

A general decrease in manufacturing employment numbers – even in countries that have seen growth in their industrial sectors, such as China, Germany and the US – is often put down to increased automation.

Within Australia, manufacturing’s share of employment peaked in the 1960s. For the absolute number working in the sector, this peaked in the 1970s. Manufacturing employs around 910,000 currently.

Research by University of Melbourne’s Professor Jeff Borland, published last year in March, shows about 400,000 jobs had disappeared from the sector since the 1970s.

There are three things to be considered regarding the decline in employment, explained Professor Borland, who also noted that the gross number of jobs and the share of employment should be considered separately.

Firstly, an increasing amount of money was being spent locally on service-type goods. Secondly was an

exposure to international competition – for example in labour-intensive goods – after the trade barriers came down.

Lastly was technological change, with the replacement of “routinisable” tasks particularly felt in manufacturing employment due to a disproportionate share of routinetype jobs.

“It’s not the only industry, because you’ve got other industries with more clerical-type jobs that predominate: they’ve been affected as well,” Professor Borland told Manufacturers’ Monthly.

“But when you have routinisability of tasks, as in manufacturing, then technological change has an impact.”

An improvement in productivity will generally see fewer workers being needed to create the same amount of products.

“So while there’s not sort of a simple relationship – ‘the only thing that automation does is destroy jobs’ – on balance, in manufacturing, the effect of job destruction has probably been greater than the effect of job creation,” Borland added.

Manufacturers’ Monthly JULY 2015 29

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Automation It is the rate of change, due to technological progress, that has some concerned about potential job destruction in manufacturing and elsewhere.

“Quite simply, we are entering a new Industrial Age,” CEDA’s CEO, Professor Stephen Martin, told Manufacturers’ Monthly the week his organisation’s report was released.

“And that Industrial Age is going to see the use of computerisation and mechanisation go to levels that we’ve not previously contemplated.”

Higher levels of technology aren’t a disaster, of course, and Professor Borland pointed out that automation could also create jobs.

“The first inclination should be of ‘what other opportunities does this give us?’” explained Herbert Hermens, CEO of Keech Australia, a third-generation castings and engineering business based in Bendigo.

Efficiency and reliability have been brought up and manufacturing costs down through investments in automation at Keech, said Hermens.

Also, market opportunities have increased.

“It doesn’t always have to be linked immediately to losing employment opportunities, because it actually offers more opportunity if you look at it positively,” he said.

Awards (Most Innovative Manufacturer category).

A high degree of automation is a major ingredient in its success as a sheet metal fabricator, allowing things such as a high level of monitoring and computerised feedback and a lights-out operation on weekends.

“I could close the door here, for example, on Friday night and we set up four tonnes of material and we

overseas get it right, maybe 1,000, maybe 2,000,” added McClenaghan.

The efficiency of machines is monitored in real-time through sophisticated analysis software.

He gave the example of a laser cutter left unattended over the weekend, which ran at 97.2 per cent efficiency for 32 hours.

“The only downtime it had was changing the machine over,” he said.

come back Monday morning and it’s done,” McClenaghan told Manufacturers’ Monthly.

The operation is highly flexible, with a dozen different jobs completed at Micron’s Glendenning operation on the Tuesday before our 2 pm phone call.

“A lot of our jobs are high-mix, low-volume,” McClenaghan said.

Micron services sectors including electrical, resources, oil and gas. They perform R&D work for an Australian maker of fridges, though eventually the final product is made in China.

“We do a lot of prototyping. Then we might roll out the first 100 before

“So we look at that, it’s an automated laser machine, and you compare that to a manual load and unload – your efficiencies would probably be 30 per cent.”

Keech has a different story, but one that featured the benefits of modern techniques and equipment to remove labour and increase effectiveness.

An 81-year-old business, it has grown sharply in recent years, aided by investments in technology such as industrial 3D printing and automating processes including engineering and mould-making, and grinding and breaking off casts.

Opportunities and challenges The year 2012 was a generally difficult one for Australian manufacturing.

There was regular speculation (eventually confirmed) that the remaining three car manufacturers would end their local assembly operations, a high dollar was sending many firms to the wall, and the then-prime minister commissioned a taskforce of experts to help find a way forward for the industry.

At the time, director Ryan McClenaghan, co-founder of Micron Manufacturing, saw an opportunity to start a business.

Enabled by state-of-the-art metalworking technology, a focus on a tightly defined niche, and a business model adopted from Japanese examples, Micron – which employs only seven – has seen success since. Last year it made the BRW’s Fast Starters list and this year qualified as a finalist in this magazine’s Endeavour 30 JULY 2015 Manufacturers’ Monthly

“Six years ago there were very few computers on the floor – now there’s computers everywhere!” said Hermens.

“There’s computers in people’s pockets, there are stations, and now of course a lot of our equipment is computer-driven. And so we’ve had to interact and enable people to interact.”

Not adapting meant cheating yourself, according to Keech, giving up productivity improvements and the chance to be more competitive in a market.

Stuart Shaw, Red Meat Business Manager at Machinery Automation & Robotics, pointed out that this wasn’t the same as laying off workers.

“From this perspective, automation helps to save and create jobs by ensuring our clients are competitive,” he said.

What sort of skills will be indemand?

It’s generally agreed that technology is changing the types of things people do at work.

Goodsell said this would continue, and would gather pace within manufacturing.

Fewer people are needed to operate machines on the shop floor, but more skills are needed in areas such as designing, integrating, dissembling and reassembling equipment.

“So the traditional tradesman who was operating the machine and producing the product in conjunction with the machine is being replaced by somebody who can think about what machine is needed, can program it, monitor it, tweak it, and integrate it into the rest of the production line,” he said.

“It’s still important to understand the basics and the mechanics of what’s going on and that’s why, still, a lot of companies like people who’ve got hands-on experience as well as a high level of technical knowledge.

That combination’s very useful.”

Still, the number of people employed in local manufacturing is predicted to continue to decline overall.

Phil Ruthven, founder of IBISWorld and a contributor to the CEDA report, predicted that over half the jobs lost in the next five years would be in manufacturing.

Professor Martin agreed that jobs in “traditional” manufacturing would manmonthly.com.au

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continue to decrease in coming years, citing the exit of the car makers in 2016/2017 and the flow-on effects among suppliers.

Also, continuing improvements in technology would mean fewer people would be needed for the same output.

“There will always be a manufacturing base, as the methodology, the skill sets all change, as mechanisation is applied, as there’s greater use of computer, then clearly it’s going to mean that the number of people with fewer skills will be needed in those operations,” he explained.

Although increased automation can create jobs, it is difficult to find somebody predicting that it will lead to growth in low-skilled, routinisable roles in factories.

Another recent survey by Grant Thornton bears this out, surveying 2,571 executives in 36 countries and finding that 43 per cent of manufacturing businesses were looking to automate away 5 per cent or more of their workforce.

The survey also suggested technology would M A 0 change 7 1 5 _many 0 0 0roles, _ T Swith U 44 per cent of manufacturers intend-

ing to “redeploy rather than remove staff.”

What skills will be needed What machine learning, the industrial internet and other advances will see created in the way of new manufacturing jobs is an open question.

Industry 4.0 app developers, collaborative robot trainers and more data analytics roles represent three pieces of speculation.

What is likely is that the factory of 20 years from now will look very different to one in 2015, and so will the workforce making it run.

So what abilities will be in demand by the manufacturers of the future?

As the Business Council of Australia, CEDA, the country’s Chief Scientist and others have said, STEM skills will be vitally important in a highly data-driven world.

Goodsell believes that certain STEM-based capabilities, systems thinking, leadership and design led innovation skills will be highly sought after.

1 Trends 2 0 1 5of- increased 0 6 - 2 3flexibility, T1 0 : 5 6 : greater responsiveness, and shorter

production runs within factories will mean a knack for uncovering customers’ needs would gain in importance.

“You don’t really make something now until you’ve got a pretty good idea that somebody wants that thing in the form that you can make it,” said Goodsell.

“This type of design thinking is a higher level skill than most companies give credit to. It’s a higher-level skill than most companies have traditionally had. And if I’ve noticed one trend in the last two or three years talking to manufacturers, almost all of them have been working on this capability in their company.”

Those daunted by the future – and one with probably fewer factory floor jobs in it – can at least take heart in the knowledge that the workforces of most industries are tipped to be radically reshaped in coming years by computerisation.

An obvious example, driving a car, was long considered an impossible task for a computer to master. Self1 driving 1 + 1 0vehicles : 0 0 will likely be massproduced by the end of the decade,

with huge disruptions in the logistics industry a probable result.

You could also consider that every technological revolution has seen living standards improve and jobs created in the long run. (Though some have their doubts that this time around will be pleasant for all, and have suggested a “hollowing out” within economies, with many middleclass jobs disappearing.)

Hermens, who spoke to Manufacturers’ Monthly while on the road, mentioned the ground he was passing over in his reason for optimism.

Years ago, roads were laid with picks and shovels.

There are fewer people doing the job, which is now mechanised, much easier, and has an end result of a higher quality.

At the same time, life has, on the whole, gotten better.

“Those workers have found other opportunities,” he said.

“The Australian nation has grown, opportunities have grown. Automation does not necessarily, as a whole for the nation, mean that fewer people will be employed.”

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What’sNew Order pickers

Lightweight hole punchers

JUNGHEINRICH is unveiling new HOUGEN AUSTRALIA has added two new order pickers over the coming electro-hydraulic hole punchers to their months, starting with the ECE 225 lineup of punching machines.

HP (hydraulic lifting platform) and The new Hougen-Ogura models the ECE 225 HP-LJ (hydraulic lifting 75002.5PR & 75004PR feature a lightplatform with control unit) variations. weight single body construction allowing All variations are based on the the punching of holes in steel in as little as ECE 225 model, which was recently 2.3 seconds. newly developed as a platform Both models include the new “Power concept with completely overRetractable” Punch system which allows hauled drive and control technology. the user to power reverse the punch back The models feature substantially out of hole. This improves productivity in enhanced acceleration and driving harder, more elastic materials which tend performance, resulting in up to 10 to grip the punch (not allowing it to auto The order pickers offer enhanced acceleration and percent higher turnover compared return to the home position) after the hole driving performance. with the previous series. is produced.

These order pickers can transport payloads of up to 2,500 kilograms. Both trucks are The punch units are lightweight at 11.3 fitted with a stand-on platform and are especially designed for frequent order picking at kg, making them easy to move around the second racking level. and operate without the need for a lift or Whereas the ECE 225 HP lifts just the hydraulic lifting stand-on platform to the second assistance. racking level – the operator simply activates a foot button on the platform, leaving his Both the 75002.5PR & 75004PR use hands free for order picking – the ECE 225 HP-LJ allows him to raise both the stand-on only electrical power to operate the motor platform and the control unit to the second racking level. and the self-contained hydraulic system.

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75004PR has increased punch pressure of 16.9 tons. punching pressure to punch round holes up to 19mm in diameter through 6.4mm material and rectangular holes up to 14mm x 21mm.

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32 JULY 2015 Manufacturers’ Monthly

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Brought to you by

Precision moisture analyser MICHELL Instruments has launched its new precision moisture analyser – the QMA401 – featuring the latest generation of quartz crystal microbalance (QCM) sensor and designed Maintaining the system is simple, infrequent and inexpensive. to provide consistently accurate measurements of trace moisture.

This consistency is achieved via a self-calibration system which adjusts the analyser against an internal moisture generator.

According to the company, long term stability of these measurement corrections is guaranteed, as the moisture generator is supplied with a calibration traceable to NPL and NIST. Typical applications for the QMA401 are those which require trace moisture measurements in gases with high accuracy and fast response – such as verifying the purity of semiconductor plasma etching gases, monitoring polymer drying for plastic bottle manufacture and monitoring hydrogen cooling systems for power generators.

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Torque wrenches ENERPAC has extended the safety and durability of its square drive and hexagon cassette torque wrenches with its new X-Edition incorporating additional features that make them easier to use while achieving more uptime.

The latest X-Editions of the S square drive and W series (pictured) low profile hexagon cassette series features a stronger, more durable and safer connection between tool body and manifold, along with a dual plane swivel manifold that features interlocking arms to increase robustness and safety.

The hexagonal drive X types also features a top handle mount on cassettes to help operators attain easier handling of narrow access applications while keeping hands away from pinch points.

Productivity is enhanced on the square drive X types by wider reaction arm release levers, making operation simpler in gloved hands.

Productivity is also facilitated by engraved on the wrenches, 1 9 + 1 tool 1 : markings 0 0 including direction-of-turn for tightening or

Productivity upped via engraved markings. loosening with the square drive series. The angle-of-turn indicator on the square drive tools dramatically decreases the operational time for tightening each bolt gets the job done right first time.

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The last WORD Manufacturing awaits huge shake-up A new CEDA report has raised questions about how ready Australia’s workforce is for an era of self-driving cars, hyper-connectivity and artificial intelligence. Brent Balinski spoke to the group’s CEO, Professor Stephen Martin.

T

HE country’s workforce is about to be shaken up by a new industrial age, and manufacturing is not immune to this set of fresh challenges.

Modelling in the recently-released Australia’s Future Workforce report from the Committee for Economic Development of Australia shows as many as 5 million jobs are at a high risk of being rendered obsolete in the next 10 – 15 years.

“We’ve already seen in some of Australia’s traditional economic areas – the resources sector and agriculture – where mechanisation has certainly replaced people,” Professor Stephen Martin, CEO of CEDA, told Manufacturers’ Monthly.

“And that, I think, is a bit of a foretaste of what might potentially come in the future.”

The report questions how well the nation is prepared. Shifts in skill requirements due to technology are not new, but the pace of change is unprecedented.

manufacturing is the future for Australia,” said Martin.

According to the report, despite some recent policy positives, Australia is doing nowhere near enough to ensure the manufacturing of tomorrow flourishes. It charges that the nation’s industry innovation measures are appallingly underfund-

vours with broadband speeds, which recently fell to outside of the global top 40.

And national efforts to prepare for the automotive sector’s demise, the lack of a top-class innovation ecosystem, and an industry policy approach of “lavish[ing] resources on the mining sector through fuel

More attention needed

What’s needed?

STEM educational skills will be vital for those growing up in next stage of the “Infotronics Age”. Digital disruption will make computational skills more important than ever, and businesses and workers will have no choice but to adapt.

“We have to develop our skills so that we can participate as part of that,” said Martin.

“And we have to recognise that long-term policies are going to be required to enable us to develop the skills around each of those, which clearly must be underpinned by a good skill level in basic computing.”

For this industry, the future is very much about high-tech, globally-minded manufacturing, with traditional manufacturing businesses and their employees continuing to be challenged.

“There’s no doubt that advanced 34 JULY 2015 Manufacturers’ Monthly

900,000, and these are tipped to continue to drop.

Ruthven predicts over half the jobs lost in the next five years will be in manufacturing.

Martin agrees with the assessment, with advanced manufacturing a growth area but traditional industry to continue to shed workers, citing reports that BlueScope is mulling over a closure of its No. 5 blast furnace at Port Kembla.

“There will always be as a manufacturing base, as the methodology, the skill sets all change, as mechanisation is applied, as there’s greater use of computers, then clearly it’s going to mean that the number of people with fewer skills will be needed in those operations,” said Martin.

ed compared to comparable overseas efforts.

The federal government’s five Industry Growth Centres – including the Advanced Manufacturing Growth Centre – initiative has been singled out against other, overseas initiatives such as the US’s National Manufacturing Institutes, Germany’s Fraunhofer organisation and others.

“They certainly need to be more adequately funded than they are in projections at the moment,” said Martin.

“These industry centres have been built on the Catapult centre concept in the UK, and we are only spending an estimated $AUD190 million over four years, whereas the UK government is spending $AUD3 billion.”

We have also done ourselves no fa-

rebates, investment incentives and infrastructure spending in an old style and discredited ‘national champions’ approach” are all criticised.

Infotronics age A contributor, Phil Ruthven, founder and chairman of business intelligence firm IBISWorld, characterises the current period – following the Agrarian Age (up to the mid-1860s) and Industrial Age (following this up to the mid-1960s) – as the Infotronics Age. The current era has seen productivity double and the standard of living increase two-and-a-half times over.

It has also seen ever-lower numbers of workers in manufacturing, which currently employs over

The Port Kembla site employed about 22,000 in the early 1980s, though that number is now around 3,500. 1,000 workers were shed when the No. 6 furnace was closed in 2011, and roughly 2,000 would lose their jobs if the last blast furnace stopped running.

Factory closures are obviously bad news, said Martin, but there were too many doom and gloom stories written and broadcast. More attention should be directed towards the many Australian manufacturers who were globally competitive, with advanced manufacturing alive and well across a range of segments.

“Whether we’re talking pharmaceuticals, whether we’re talking in developing our parts, whether we’re talking in electricity generation, there are niche manufacturers that are employing highly trained, highly skilled, highly paid people – fewer of them, absolutely – but also linked to global supply chains,” said Martin.

“And we need to be giving due recognition to the role that they’re playing now and will play into the future for Australia’s economic sustainability.” manmonthly.com.au

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