Manufacturers' Monthly August 2014

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

Est. 1961

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small packages

Efficient things

AUGUST 2014

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Gearmotors \ Heavy Industrial Solutions \ Electronics \ Decentralised Systems \ Services

SEW is always “conveying” efficiency Food and Beverage manufacturers across Australia are taking a close look at their operations to see where they can make savings – be it energy, space, down-time or through optimisation of processes. SEW-EURODRIVE can assist system designers and operators in reaching savings throughout their plant all the while maintaining strict hygiene standards. SEW offers a number of decentralised drive solutions including the MOVIGEAR® and DRC Motor, both which offer IE4 (Super Premium Efficiency)

MOVIGEAR® • Motor, gear unit and electronics are combined in a single housing

standards. Additional features such as the HP200 anti-stick coating are also available

• Compact design

to assist with optimising these systems for the food and beverage industry.

• IE4 Super Premium Efficiency class • Optimum efficiency due to precise matching of all drive components and the use of permanent magnet motor

SEW-EURODRIVE- Driving Australian Industry

• High degree of protection

www.sew-eurodrive.com.au 1300 SEW AUS (1300 739 287) to be directed to your nearest office Melbourne (Head Office) I Sydney I Brisbane I Townsville I Perth I Adelaide

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

AUGUST 2014

Keech 3D prints its own global path

INSIDE >>

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IT@MM Warehousing and the cloud

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Motors & Drives Airport baggage gets an upgrade

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Women in Industry Our inaugural awards

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Inside

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AUGUST 2014

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For daily news visit manmonthly.com.au

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

6 Editorial

Managing Editor: Kevin Gomez Ph: (02) 8484 0976 Fax: (02) 8484 0722 kevin.gomez@cirrusmedia.com.au

■ Manufacturing needs strong medicine

Editor: Matt McDonald Ph: (02) 8484 0645 Fax: (02) 8484 0722 matthew.mcdonald@cirrusmedia.com.au

8 News & Analysis

Journalists: Brent Balinski Ph: (02) 8484 0680 Fax: (02) 8484 0722 brent.balinski@cirrusmedia.com.au

■ Snapshot ■ Carbon tax repeal ■ Rossi misses military contract

Editor-at-Large: Alan Johnson Ph: (02) 8484 0725 alan.johnson@cirrusmedia.com.au Graphic Designer: Louis Santos louis.santos@cirrusmedia.com.au

12 Comment

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

■ Opportunities off the playing field ■ The way forward for gas

VIC/Overseas Sales: Michael Northcott PO Box 3069, Eltham, VIC 3095 Ph: 0448 077 247 michael.northcott@cirrusmedia.com.au NSW Sales: Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Ph: (02) 8484 0868 Fax: (02) 8484 0722 Mobile: 0414 644 664 anthony.head@cirrusmedia.com.au 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

16 IT@MM

32 Motors & Drives

46 Bulk Handling

■ Warehousing and the cloud ■ Try your warehousing options before you commit

■ Airport baggage gets an upgrade ■ Selecting a variable speed motor

■ Pallet jack for increased safety ■ Palletiser bulk bag filler

22 3D Printing ■ What’s behind the 3D Printing boom ■ 3D Printing lands in Melbourne ■ Time to get on board ■ Keech seeking global relevance

NSW, SA/NT & WA Sales: Cirrus Media Ph: (02) 8484 0868 anthony.head@cirrusmedia.com.au 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, 2014

42 Contracts & Tenders ■ Getting through the financial hoop

44 Regional Manufacturing ■ Medicine to secure Australia’s future

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AUGUST 2014

Keech has launched its new subsidiary, Keech Advanced Manufacturing 3D. Last year the group, which is best 3D prints its own known for its steel castings, announced global path its plan to be a major provider of 3D printing technology to the region.

The company has recognised 3D printing is suitable for patternmaking, 2 0 1 4 - 0 5 - 0 6 T1 5 : 0 7 : 0 9 + 1 0 : 0 0 INSIDE >>

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Motors & Drives Airport baggage gets an upgrade

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50 What’s New ■ High-rise storage shelving ■ Measurement system for lab work ■ Redundancy modules

54 The Last Word ■ The ball is in our court

On the cover

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Keech

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48 Women in Industry ■ Our inaugural awards

27 Industrial Doors

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38 Packaging ■ Packaging in an online world ■ Delivering the full package

■ Retractable idler frames ■ High speed car wash doors

Average Net Distribution Period ending Mar ’14 18,459

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

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and is excellent for reverse engineering old patterns through digital scanning.

According to CEO Herbert Hermens (pictured on cover), the move will not only put Bendigo on the additive manufacturing map, but also take Keech another step along the path from “local significance to global relevance”.

Women in Industry Our inaugural awards

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Manufacturers’ Monthly AUGUST 2014 5

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Comment

KEVIN GOMEZ – Managing Editor

Manufacturing needs strong medicine

L

United States Army General Norman EFT untreated, aneurysms can be Schwarzkopf once remarked: You can’t fatal. They occur when the aorta weakens and becomes abnormally help but... with 20/20 hindsight, go back and say, ‘Look, had we done something large. Fortunately aneurysms can be different, we probably wouldn’t be facing treated with an endovascular stent graft. what we are facing today.’

One of the two major manufacturers Yes, hindsight is indeed a wonderful of stent grafts in the world is based in thing. But what of the present?

Oxfordshire, UK. The other, Cook MediAccording to Deloitte Australia, cal, has operations in Eight Mile Plains, only 20 percent of the country’s 160 car Brisbane. components suppliers have begun the Cook Medical’s graft is made of woprocess of diversification. ven polyester material delicately sewn Speaking on Nine Network’s Finanto a frame of stainless steel stents. This cial Review Sunday program, Business is highly precise work - and the end Council of Australia chief executive, result could save a person’s life.

Jennifer Westacott, spoke out strongly This task is done by skilled workers about local companies not innovating drawn from an industry that has long enough. However, she lays part of the departed our shores - the TCF sector responsibility on the government and (textile, clothing and footwear). Using is calling for an increase in skills and scans sent in by doctors from around the capabilities, development grants, preworld, these workers carefully sew precincts and support for entrepreneurs. cise gauze stents for individual patients.

There are successful companies that The demise of Australia’s TCF induslocal manufacturers can emulate. Looktry has been long forgotten but there ing beyond the factory-closing headlines are lessons to be learnt as we approach NEXTISSUE that fill mainstream media, the team at the demise of another sector – the • Made in Australia $2.25 billion auto parts industry.

Manufacturers’ Monthly has long been • Metalworking & Machine Tools Hardliners argue that companies looking for success stories. And they’re • Energy & Power Management depending on the automotive manufacout there, perhaps hiding their light • CAD/CAM/CAE turing sector should have begun their under a bushel.

• Forklifts & Attachments transformation in the 1980s and 90s.

Based in Sefton, NSW, Romar • Automation, Robotics & That’s when Australia’s reduced tariff Engineering has made a remarkable Production Control regulations allowed local car manutransformation. Not too long ago, • Body Protection facturers to competitively source from around 70 percent of the company’s MA 1 1 1 3& _Recruitment 0 0 0 _ T UR 1 2 0 1 3 - 1 0 - 0 9 T1 4 : 1 2 : 1 9 + 1 1 : 0 0 • Skills Training parts suppliers overseas. silicone and rubber products were

supplied to the auto industry. That’s now less than one percent.

Romar Engineering invested $1 million and its ISO13485 and ISO9001 certified facility now comprises an expansive moulding and tooling area with Class 7 and 8 cleanrooms. Their products are used in infection control equipment manufactured by Sydney-based Nanosonics and exported internationally.

Nanosonics itself is a homegrown success story. Set up in 2001, the company developed the Trophon ultrasound disinfection system and Romar is one of the 56 suppliers involved in this product.

To quote Schwarzkopf again: ‘True courage is being afraid, and going ahead and doing your job anyhow.’ Australia has many courageous manufacturers. We just need more.

As always, the team at Manufacturers’ Monthly would love to hear from you, so drop us an email, follow us on Twitter and join the discussions on Facebook and LinkedIn. kevin.gomez@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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SnapSHOT Manufacturing sectors, by size of employment (1989, 2008 and 2014) Source: ABS Labour Force, Australia, Detailed, Quarterly, Feb 2014 (unadjusted data, four quarter moving average) via Australian Industry Group

Food Product Machinery and Equipment Transport Equipment Primary Metal and Metal Product Fabricated Metal Product Furniture and Other Manufacturing Manufacturing, not further defined Basic Chemical and Chemical Product Wood Product Printing and the Reproduction of Recorded Media Textile, Leather, Clothing and Footwear Nov. 1989 (1990s peak)

Non-Metallic Mineral Product Bevarage and Tobacco Product

May 2008 (Latest peak)

Polymer Product and Rubber Product Pulp, Paper and Converted Paper Product

Feb. 2014

Petroleum and Coal Product

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Thousands of Employees

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e.

Hyperdriv d Stepper Integrate PLC troller and Motor Con Driver.

Kremford Pty Ltd is an Australian company with a strong background in Marketing, Electronic Engineering, Design and Computer Science.

Our range of imported and locally manufactured products are ideal for Australian standards.

A range of Motors, Ge ar Motors, Ge arboxes an d Speed Red ucers.

Groschopp Inc.

Lexium range of integrated stepping motors and stepping motor drivers.

is a US manufacturer of Drivers and highly engineered fractional horsepower motors, electric motors and gearmotors for OEM and distribution products.

Lexium MDrive (LMD) integrated motion solutions simplify system design by replacing multiple components with one compact product that tightly integrates the motion controller with the motor. Wiring is also reduced, simplifying EMC and improving machine reliability.

www.kremford.com.au 6a Erith Lane Kalorama, 3766 Victoria, Australia Main Telephone: 03 9017 0473

Sales Contact: Kieran Harford Telephone: 0400 830 039 Email: sales@kremford.com.au

Support Contact: Ron Kreymborg Telephone: 0410 448 864 Email: support@kremford.com.au

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News&ANALYSIS Business welcomes carbon tax repeal BUSINESS groups have welcomed the scrapping of the carbon tax; however the effects of the decision which has finally have passed through the senate will be mixed.

In a joint statement, Innes Willox, Chief Executive, Australian Industry Group; Jennifer Westacott, Chief Executive, Business Council of Australia; and Brendan Pearson, Chief Executive, Minerals Council of Australia welcomed the move as the first step in moving towards an emissions reduction policy that works for the economy and the environment.

Willox said in a separate statement that industry particularly welcomed revisions made to provisions to pass on savings to consumers in the form lower prices.

M A 0 amendments 8 1 4 _ 0 0 0 _ GRA “The proposed last week would

have inadvertently required thousands of businesses to produce carbon tax repeal substantiation statements, at considerable cost in staff time and money, under threat of heavy sanctions. That would have hit everyone from caravan parks and shopping centres to car dealers and whitegoods suppliers,” he said.

According to the SMH, there are 371 entities which currently pay the carbon tax. However, many of these also receive compensation to help them deal with the tax. While they will no longer need to pay the carbon tax beyond February, they will also no longer receive that compensation.

Coal-fired power producers receive this compensation and so do high energy users such as those in the aluminium 1 2 0 1 4 - 0 7 - 1 0 T0 industry.

In fact, according to the

SMH, because they receive such generous compensation some aluminium producers will actually lose money as a result of the tax repeal.

As reported by the ABC, the Tasmanian Opposition claimed the carbon tax repeal will cost Tasmania $70 million per year because of the state’s strong renewable energy sector, which includes Hydro Tasmania.

“We were getting the pay back that we deserved in terms of our investment in renewable energy over many 9 : 3 4 : former 3 1 + 1Premier 0 : 0 0 decades,” Lara Giddings said.

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10 AUGUST 2014 Manufacturers’ Monthly

New safety codes for NSW workplaces WORKCOVER has introduced twelve new codes of practice to improve safety in NSW workplaces.

The codes are part of the national harmonised work health and safety laws that were adopted by NSW in 2012. The new codes replace a number of existing codes that were in place under previous occupational health and safety laws.

Acting General Manager of WorkCover’s Work Health and Safety Division, Peter Dunphy said in a statement that the codes are about making NSW workplaces safer.

“The NSW Government is committed to providing a safe and healthy working environment for every NSW worker,” Mr Dunphy said.

“The new codes make it easier for everyone to know and understand their responsibilities.

The new codes affect all industries however those most greatly impacted include the construction, electrical and manufacturing industries.

Mr Dunphy said WorkCover would support employers and workers to

implement the new codes.

The 12 new Codes of Practice include several which have particular relevance to the manufacturing industry - First aid in the workplace; Managing electrical risks in the workplace; Managing risks of hazardous chemicals in the workplace; Managing the risks of plant in the workplace; Welding processes; Spray painting and powder coating; and Abrasive blasting.

As a result of the introduction and to avoid duplication, five existing codes have been revoked. manmonthly.com.au

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News&ANALYSIS Rossi misses out on military boot contract SOUTH Australian boot maker Rossi Boots has missed out on a contract to supply boots to the defence force because its price was too high.

The South Australian company which has been making boots for over a century and supplied boots to Australian troops in both world wars failed the valuefor-money criteria under commonwealth purchasing rules.

The Defence Materiel Organisation (DMO) instead awarded the contract to a supplier which will make the boots in Indonesia.

In a final effort to attempt to sway the Government and win the $15 million contract, Rossi Boots chief executive Neville Hayward travelled to Canberra. He desribed the situation as another blow to Australian manufacturing.

Independent senator Nick Xenophon criticised the decision and said that it does not take into account the economic multiplier benefits of making the boots locally.

“Rossi Boots has a soul (sole) in both senses of the word: in terms of tough durable boots and in terms of being a strong family company,” he told reporters at Parliament House in Canberra.

Senator Xenophon said the DMO cannot consider such benefits under its current rules.

The Footwear Manufacturers’ Association (FMA) questioned the military procurement laws and

compared them unfavourably to other countries’ policies.

FMA’s Phil Butt said Australia needed to keep its industrial base, and that other countries favoured locally made boots to supply their military.

“We need to keep a warm industrial base in Australia to be able to keep manufacturing in the future,” Butt said.

He cited the 1941 Berry Amendment in the United States, which gives preference to local goods, and two recent contracts awarded to local boot makers in Canada.

A Senate inquiry into the issue, initiated by Senators Xenophon and John Madigan (Democratic Labor Party) recommended that Commonwealth procurement should consider the broader benefits of buying locally.

“Witnesses made clear to the committee that the value-for-money proposition is not merely a matter of comparing prices,” News Corp reported the inquiry’s chair, Labor’s Kate Lundy as saying.

“This issue goes to the heart of how Australian industry has opportunities to compete on a level playing field.”

The government’s minority report said that there was no need to change procurement policies with “artificial protections”, and that 80 per cent of goods procured in 2012-13 were from Australian suppliers.

What members of our manufacturing community think of the decision to buy overseas-made army boots...

Mimi The Government says it supports Australian made. Really? What about Rossi Boots? Our troops should be proudly wearing an Australian manufactured boot.

Rossi Boots conform to Australian workplace ethics. Who knows what labour conditions the cut price boots are made under!

If the Australian Government shies away from local products what hope do we have?

Ron Good on Senators Xenophon and Madigan for reviewing the rules. I’m sure Rossi failed on the “price”, not the “value for money”, because value takes into account the big picture of service to customer, support for customer and community, etc.

I doubt the DMO actually bothered to even ask the customers what they want in boots - they’re probably too

manmonthly.com.au

engrossed in the rules, rather than the effect.

Rob The DMO are still only looking at purchase price, not the total value to their customer. I’m not one for protectionism for the sake of it, but value is more than just price.

What is the total cost to Australia?

MM Unfortunately for Australian manufacturers, the procurement decisions are often made with beneficial outcomes for those individuals involved in this process.

The other aspect, already alluded to in this article, is the broader impact of shipping the money off-shore.

Lastly, while a broad statement can be made about majority sourcing from “local” organisations, the reality

is that many of these organisations aim for real “heartland” brand appeal, but in reality are simply fronting overseas supply.

Editor’s note: Comments are as received. Corrections are 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.

In brief...

ASC boss quits ASC chief executive Steve Ludlam has quit from his position after five years as head of the shipbuilder. As he leaves the company, it has returned its submarine maintenance program to efficiency; but is also involved in the behind-schedule and over-budget project to build Australia’s air warfare destroyers.

Graphene-based 3D printing in WA KIBARAN Resources has signed an agreement with 3D Group to research and develop graphite and graphene 3D printing technology. The companies will jointly funding a new R&D firm called 3D Graphtech Industries, which will pursue patents and collaborative partnerships.

Bandits hit Samsung factory ABOUT 20 armed robbers stole 40,000 products including smartphones, laptops and tablets from a Samsung factory near Sao Paulo in Brazil in July. The gunmen hijacked a bus carrying Samsung employees then travelled to the plant where they performed the heist. Seven trucks were used to remove the goods.

Solar plans ditched CALIFORNIAN company Solar Reserve has dropped plans to develop plants for the Australian retail market, saying the Federal Government is more interested in conventional energy. Instead of developing such plants, the company intends to concentrate on providing energy for the mining industry.

New order for Quickstep QUICKSTEP has announced a new purchase order from Lockheed Martin for wing flaps manufactured for the C-130J Super Hercules. The Sydneybased composites technology company announced that deliveries of the 19 wing flap sets are expected to begin in mid-2015.

Kresta receives takeover bid CURTAIN maker Kresta has received a takeover bid from a subsidiary of Chinese sunshade maker Ningbo Xianfeng New Material, also known as APLUS. Kresta directors said that shareholders should take no action until they receive an independent report into the bid.

Manufacturers’ Monthly AUGUST 2014 11

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Comment Opportunities away from the playing field Australia punches well above its weight in sport. The introduction of the Sports Advanced Manufacturing Hub presents us with an opportunity to translate this success into sports manufacturing. Albert Goller writes.

W

e are a nation of sports lovers. From AFL to cricket, horseracing, tennis and NRL, Australians love sport, both as spectators and participants. Sport is a central part of our culture and, as a smaller country, we have often succeeded against international heavyweights. We punch well above our weight.

Yet when it comes to sports manufacturing, surprisingly, we punch well below our weight and we have enormous opportunity to improve.

Globally, the market for sports equipment and product is valued at around $300 billion. An important part of the market exists in the sports technology area –where Australian manufacturers are realising their potential.

There is a vast imbalance between what we currently export versus what we import in the sports technology market. Today, Australia imports over $2 billion worth of products, yet exports only $285 million. America currently dominates the market, accounting for 41 per cent of the industry, but it is time for Australia to step up and take a larger piece of the pie. What we need to harness is the reputation Australia has internationally in the world of sport.

Our major sporting adversaries Britain, China, US and Canada - are buying our coaching talent, so why not our products. For years countries around the world have marvelled at Australia’s performance in the sporting arena - its time to convert this performance into the business arena.

If we take the analogy of sporting team in the world of business there are many strong synergies. A sporting team has to assess the opposition understand what their comparative advantage is, come up with tactics to attack their weaknesses and take advantage of them. In sport the coach and players come up with new tactics, unexpected and different techniques 12 AUGUST 2014 Manufacturers’ Monthly

AFL legend Kevin Sheedy at the opening of the Sports Advanced Manufacturing Hub. and they use these tactics to capitalise on the talents of individuals in the team.

In the business world this means approaching the market with new innovations and different approaches.

It means talking to business colleagues about how to attack a new market together and how to use the best talents of Australian organisation to bridge this gap.

“

The global market for sports product is valued at around $300 billion...

That’s where the new MeTA Sports Advanced Manufacturing Hub can make a huge impact. A partnership between the Australian Sports Technology Network (ASTN) and MeTA, it has the potential to propel Australia into a global leader in sports manufacturing. Collaboration

allows companies to share their own capabilities and potentially take on bigger markets as a team.

ASTN comes together with MeTA, as a collaborative network of 16 universities, 39 national sporting organisations and more than 60 small to medium businesses. The group acts as a facilitator to guide organisations across the political landscape, the university and research sector and the local and international business ecosystem.

The MeTA Sports Advanced Manufacturing Hub offers a platform for forging stronger connections between SMes, researchers and large corporations, in support of the development, marketing and export opportunities of Australian sports technologies and ideas to the market.

The sports hub allows manufacturers to identify markets as a whole network to find ways to be competitive in a global market. The hub will involve customers (including elite athletes and coaches), suppliers, sports associations and industry representatives to strengthen the outcomes of the hub. As a team we can build a strong force in manufacturing

– as individuals we are weak.

A core focus of the Hub will be on fostering innovation in sports technologies such as wearable devices, smart apparel, equipment, medical technologies and health products. We are already seeing access to products not imaginable five or ten years ago and there is enormous opportunity for Australia to drive growth and innovation even further.

A leading protective equipment supplier, Albion Sports has already witnessed great success through collaboration. Albion started out making the famous baggy green cap, an icon of our Australian cricket team for decades. Their initial foray as a headwear manufacturer evolved into protection, an area that the company remains dedicated to positioning itself as a market leader. Just four years ago, they launched a new industry standard for head protection for jockeys; critical in a sport currently ranked the second most dangerous sport profession in the world.

Albion products are currently manufactured offshore, but Albion is a pivotal member of the collaboration hub and by working to establish manmonthly.com.au

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editor@manmonthly.com.au

local relationships they may be able to move their manufacturing back to Australia.

As a company which supports the principle of mass customisation, Albion is also developing protective gear for the cycling industry and is currently designing and manufacturing the world’s fastest bicycle helmet for the Australian Cycling team in preparation for the Rio Olympics. In addition, the company employs staff to work on designs and prototypes to take any new products being developed for athletes into the consumer space.

This is a shining example of the capabilities of Australian sports manufacturing, where shared resources, information and collaboration work together. Brendan Denning from Albion sees the opportunity that lies in the sports technology market.

“A lot of sports require protective equipment and there’s a lot of discussion around concussions, injuries and we see that as an opportunity for A 0 8 1new 4 _ technology,” 0 0 0 _ I Nsaid F us toMdevelop Denning.

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Albion has diversified from cricket gear into bike helmets. to encourage foreign investment and It is encouraging to see compacreate employment opportunities nies such as Albion benefit from through new commercial projects. its relationship with META. New Led by the ASTN and with the full opportunities are suddenly possible, support of META, the Hub will feaoften through new found connections ture a core team working in collabowith other companies and potential ration with other META members, partners. Through the engagement in who will have responsibility for the the collaboration hub they may find development of commercial projects multiple uses and cross overs into that can be transitioned to mass industries like aged care and defence. sports consumer markets domestiAs well as nurturing new techcally and internationally. nologies and expanding export 1opportunities, 2 0 1 4 - 0the 7 -Sports 0 7 TAdvanced 1 0 : 1 2 : 0 0 + 1 0sky : 0 0 is the limit. AustralThe truly ia already has an international repuManufacturing Hub will also work

tation in world sport and this “brand” provides companies with an open door to new and emerging industries.

Already the companies that I have seen in this industry have enormous potential. There is no doubt we have the ability to create innovative and high value products.

It’s time for Australia to showcase our capabilities; not just in the sporting arena as athletes, but as leaders in sports technology and manufacturing too.

[Albert Goller is the chairman of META, an organisation which aims to transform Australia’s manufacturing sector into a globally integrated and competitive industry.]

META 03 8540 5373 meta.org.au ASTN http://astn.com.au/

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Manufacturers’ Monthly AUGUST 2014 13

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Comment

INNES WILLOX – CEO Australian Industry Group

editor@manmonthly.com.au

The way forward for gas Rising gas prices, if left unchecked, will have a devastating effect on Australia’s manufacturing industry. The good news is there are measures that can be taken to achieve both a growing LNG export industry and a diverse industry base. Innes Willox writes.

A

I Group along with five other industry associations has compiled the first comprehensive examination of the impact of rapidly escalating gas prices on the Australian economy.

The report presents detailed case studies on the impact on companies in sectors as diverse as aluminium, food and beverage, paper and galvanising to give real illustrations of how higher gas prices impact on manufacturing operations and jobs.

The report “Gas Market Transformations - economic Consequences for the Manufacturing Sector” finds that under current policies and realistic gas price forecasts Australia’s manufacturing output will contract by $118 billion over the next seven years and 14,600 manufacturing jobs will be lost.

Despite benefitting from LNG gas exports, it is anticipated that Queensland’s economy will suffer the most severe decline in non-gas sectors, with a $60 billion contraction in manufacturing output and a $22 billion contraction in mining output in net present value terms by 2021.

New South Wales and Victoria will see serious declines in manufacturing, accumulating to around $24 billion and $23 billion respectively in net present value terms by 2021.

In general, transformations occurring on the east and West Coast gas markets will have the most adverse consequences for manufacturing businesses that: - Use gas most intensively, and therefore incur significant increases in input costs.

- Are substantially trade-exposed, or face other market imperfections, which limit their ability to pass on increased input costs.

The impacts are the result of sharply higher gas prices as LNG exports ramp up, attracting domestic gas supplies into the higher priced export market and raising domestic

14 AUGUST 2014 Manufacturers’ Monthly

gas prices to export-parity levels.

This new analysis certainly shines a spotlight on the urgent need for gas market reform to cushion the impact of higher gas prices already being felt across eastern Australia.

“

Without action, manufacturing output could contract by $118 billion over seven years and 14,600 jobs may be lost...

Manufacturers use a lot of gas - it’s clean and efficient, and it’s always been cheap. Tripling wholesale prices are set to shrink manufacturing significantly. We need urgent action

by the States and the Commonwealth both to unblock new gas supply, and to reform a gas market that should be far more competitive and transparent.

One key step to expand the market includes through removing excessive regulatory barriers to new gas production, including by removing the Victorian fracking/ CSG moratorium and the NSW CSG exclusion zones, by streamlining approvals processes while maintaining strong standards, and by harmonising regulation across all jurisdictions as much as possible.

To help with increasing the diversity of gas suppliers we would support the Productivity Commission (PC) to conduct a comprehensive review and cost benefit analysis of potential reform options relating to the eastern gas market, taking into account the rapid change in market dynamics and with the aim of increasing efficiency, transparency and competitiveness of the eastern gas market.

An abundance of energy should be a comparative advantage for Australia. Instead, the gas export boom runs the risk of adding significantly to the already heavy economic pressures on domestic manufacturing because of constraints on supply and the absence of a properly functioning domestic gas market.

Our objective is for Australia to achieve both a growing LNG export industry and a diverse industry base that includes a strong manufacturing sector. A more competitive and efficient domestic gas market, with increasing gas supplies and improved market information and transparency is a critical first step in addressing the impact of higher prices.

Also worth consideration is an Ai Group proposal of a national interest assessment before any future expansion of the gas export sector, to ensure we avoid a repeat or further deepening of the current mess. www.aigroup.com manmonthly.com.au

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SPONSORED CONTENT

How to make foreign exchange work for you IMPORTING and exporting finished and OEM products and materials can be valuable strategies to expand your manufacturing business and spread your risks. About one in four new exporters find success in the global market, and companies that export are more profitable on average than those that depend solely on local revenue, according to the Australian Trade Commission, Austrade*. (* Expand your business by exporting, www.austrade.gov.au/Export/ How-to-export) By taking your business offshore, you are exposed to new ideas, management practices and marketing techniques, and this can help improve your ability to compete not only abroad, but also in the domestic market.

Both importing and exporting are critical elements in securing the longevity of Australia’s manufacturing industry, rendering them opportunities you can’t afford to ignore. Plus, once you understand some of the basics, the options for expanding your business through global trade are endless.

To fully take advantage of foreign trade, researching overseas markets can be a good place to start. This includes finding out about how foreign markets operate, export documentation and foreign currency management. Having this information will help you deal with government agencies, financial institutions and, most importantly, will help you to ensure you don’t over-commit your resources.

manmonthly.com.au

From a financial perspective, it is critically important to develop a strategy for ‘foreign exchange’ as foreign currencies can fluctuate significantly and can potentially wipe out any upside to your bottom line.

According to Barry Fletcher, General Manager, at American Express FX International Payments, manufacturers have business priorities to attend to, which explain why FX payments are often treated

Once you understand some of the basics, the options for expanding your business through global trade are endless... as local payments, without taking advantage of favourable market conditions. Having a specialist FX provider can you help you monitor the market and ultimately protect your margins.

“In our experience, Australian businesses are just as creative, innovative, and driven as their foreign competitors. These qualities translate well with overseas markets, and Australian suppliers are

Understanding foreign exchange trading tools well-regarded around the world,” said Fletcher “Importing and exporting isn’t exclusively for established multinational corporations; successful global brands are often built from small, local manufacturing firms operating in some of the most remote corners of Australia.”

“However, a staggering $5.3 trillion moves around the globe on a daily basis via foreign exchange, with the price of currency changing every second. In such a large and volatile market, any movement can end up changing the price of doing business.

Understanding the market and the options available can help you reduce your company’s exposure to foreign exchange risk.”

Many innovative Australian businesses are finding success importing and exporting products and materials around the globe.

Whether you are already dealing in foreign currency, or about to take your business global, an important consideration should be who’s managing your foreign currency transactions. After all, an FX provider who understands the complexities of the market and is in sync with what you’re trying to achieve, can support you and leave you to focus firmly on competing effectively in today’s global manufacturing markets.

American Express Foreign Exchange Services 1300 885 749 offer.amexfxip.com.au

While the foreign exchange market can be complex, you can benefit by building a basic understanding of the market and how it impacts your trading options. Let’s look at some of the common terminology.

• Spots vs Forward Rates –The ‘spot rate’ basically refers to the current exchange rate, while the ‘forward rate’ is a contract to exchange two currencies at an agreed rate on a future date – this can be at a premium or discount to the current spot rate. For example, if your Australian business has agreed to purchase goods from a Japanese supplier, with payment due in Japanese yen (JPY) 30 days from now, fluctuations in the spot rate over the next 30 days could mean the goods end up costing you far more or far less than originally anticipated. A forward rate can be used as a financial tool to lock in that rate for payment on that future date.

• Hedging – You can’t predict the future, so to protect against spot rate fluctuations it is possible to take out a forward rate contract to lock in a future exchange rate for AUD to JPY. This process of protecting against future spot rate fluctuations is called ‘hedging’. Basically, hedging provides certainty by locking in your future costs, therefore allowing for better cash flow management.

• Limit Order – Limit orders are used to buy or sell an amount of foreign currency at a specified exchange rate. In the event the currency is trading at this ‘limit’ trigger point, the order will be executed.

• Stop Loss – A stop loss protects the value of your holding by establishing a low water mark, which represents the maximum you’re prepared to lose on the trade. If the value of your holding declines below this low mark, your holding is liquidated to ensure losses don’t increase.

Manufacturers’ Monthly AUGUST 2014 15

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TechnologyIT@MM Cloud warehousing has its attractions Warehousing operations are increasingly turning away from monolithic ErP solutions and towards Software as a Service solutions and the cloud. Gareth Berry explains why.

Pros and cons of the cloud Gareth Berry sees the sense in warehousing operations moving towards the cloud. As he writes in the accompanying article, Cloud warehousing has its attractions, like: • Cost effectiveness - the SaaS model calls for monthly payments.

• Customers choose only the features they need.

• The cloud facilitates new technologies like big data and mobile services.

• Familiarity - technologies are invariably browser-based.

• Vendors work on frequent updates which make benefits instantly available.

• Great for start-up businesses

E

arly this year Gartner warned CIOs that the impact of the cloud and the emergence of ‘postmodern ErP solutions’ means “by 2016 heavily customised ErP implementations will be routinely referred to as ‘legacy ErP’.” The comment confirms that companies are turning away from the over-engineered ErP suites of old in preference for the cost and competitive advantages of best-ofbreed Software as a Service (SaaS) solutions and the cloud.

Cost of ownership The first important difference about SaaS is it is incredibly cost effective. rather than requiring an investment of tens or hundreds of thousands of dollars in software, hardware, deployment, maintenance and support, the SaaS model calls for a monthly software subscription payment. Customers choose the features they need and pay only for those features. let me explain. Most cloud-based 16 AUGUST 2014 Manufacturers’ Monthly

vendors specialise in a particular area. at Unleashed, our strength is in manufacturing, warehousing and distribution functionality that suits a target niche of customers. Because of this, we don’t have a bloated accounting system in front. There’s no need. We concentrate on a specific customer need.

met. The organisation used to pay $15,000 per month in support fees for its on-premise software suite – a figure which ignores maintenance or licensing fees and hardware costs.

Since ditching the solution and moving to the cloud, this company now pays a flat $100 per month subscription to meet all its needs.

A model of efficiency

Youthful innovation

The model under which SaaS is offered also contributes to a lower cost of ownership. Cloud software vendors use the internet to market their products, provide support and train users. Unlike traditional vendors, they don’t need to send expensive teams of sales people out on the road. The whole management layer that used to double the cost of an implementation has gone, leaving a frictionless sale. People come onto a vendor’s site, look at the software, sign up and provision it themselves with little need for assistance. a good example of what’s feasible is a warehousing company I recently

another marked difference between cloud and old-style software is the degree of innovation on offer. The evolution of business systems since the 1980s begins with DOS or mainframe systems replicating earlier paperbased systems, and then moves on to Windows. These transitions brought little in the way of innovation other than computerisation of the original process and in the case of Windows, a handy ability to do multiple things on a computer at the same time. There was little real advantage to the business itself.

By contrast, the cloud has brought

On p.18 Robert Frandsen sees things slightly differently. He believes It can pay to keep your feet on the ground. Here’s why he favours the in-house option: • Cloud software is not suitable for large companies.

• Cloud software leaves little flexibility for customisation.

• In-house software is better for use in contexts where traceability is important, like the manufacture of food.

• Greater control and security when using on-premise solutions.

• Outsourcing all IT matters to multiple vendors can increase cost and risk.

• With SaaS the need to maintain the asset has not disappeared, it’s just not the owner’s responsibility. a new realm of technologies to the fore including big data and mobile services.

How companies use this convergence of technologies will dictate their ability to gain competitive advantage over others.

Significantly, the cloud’s innovation comes in a familiar package.

Cloud technologies are invariably manmonthly.com.au

“ I value a great FX rate even more when it comes with a great relationship.”

Brent Dunning General Manager Gasweld, specialist hardware suppliers

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^Subject to the Terms and Conditions of the Membership Rewards program. Offer only available on American Express foreign currency Telegraphic Transfers, Draft payments or Forward Contract drawdowns. Points are calculated on local currency equivalent. Maximum 10,000 Membership Rewards points applies per eligible transfer. Please allow 6 to 8 weeks for points to be credited to your account. *The Membership Rewards Bonus Points offer is only available for eligible new Corporate FXIP clients. To qualify, businesses must sign up and complete their first foreign currency payment before 15 September 2014. A valid American Express Business Card and enrolment in the Membership Rewards program is required (an annual fee may apply) and is subject to its Terms and Conditions at membershiprewards.com.au/termsandconditions Please allow 8 to 10 weeks for points to be credited to your account. Offer is not available in conjunction with any other FXIP offer. For further information, please refer to the relevant Product Disclosure Statement (PDS). The information contained in this document has been prepared without taking into account your objectives, financial situation or needs. If in doubt you should consult your own professional advisers. You should read the PDS and consider the appropriateness of International Payments in relation to your individual requirements. International Payments are arranged through American Express International, Inc. (ABN 15 000 618 208 AFSL No. 237996). Incorporated with Limited Liability in Delaware, USA. ® Registered Trademark of American Express Company.

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Technology IT@MM browser-based. By putting business systems in such a well-known environment, user adoption increases and the need for change management is dramatically reduced.

An iterative environment A distinguishing characteristic of cloud-based software is its iterative nature. People who are used to DOSbased systems know that once a system is in place, nothing changes unless you perform an update. With the cloud, this is turned upside down. Software is always improving. Vendors work on frequent update cycles which make benefits instantly available to users.

The other point about this iterative environment is that it is populated by an ecosystem of developers eager to extend the core functionality of an application with their own cloud offerings. Organisations can select an application that meets 80 per cent of their needs, and then select partners to obtain the additional 20 per cent specific to their industry or processes.

When to make the leap There are of course qualifiers to consider before making the leap to the cloud. First is the need for a highspeed internet connection. Without a reliable infrastructure, none of this is possible.

Second is the question of when. At what point does it make sense to go to the cloud?

If you’re just starting out in a new business, I can’t think of any organisation that would benefit by installing software. You’d go straight to the cloud. It’s the best way of obtaining the functionality, flexibility and scalability a new business needs without excessive cost.

If yours is an established business, take a look at your business and model. Generally speaking, warehousing and distribution businesses have around 20 years of intellectual property (IP) locked up in their bespoke IT systems. These might simply be a series of Excel spreadsheets with lots of complex formulae, but they still represent your IP. You need to decide

whether those processes can be transferred to the cloud without losing any business advantage. Then, weigh this up against the benefits of the new functionalities and feature sets that cloud software can offer.

If you decide the cloud is right for you, the next step is to choose the right application for your business.

Just as when making traditional software decisions, look for something that will meet current and future needs. Also, bear in mind the world is going mobile so the longer you wait to make your decision, the bigger the leap that will eventually be required for your business. In other words, don’t leave the decision too late.

It’s here, right now Australia is in the middle of moving from the early adoption stage to a mass market and it’s not just small companies making the change. In the last ten months, warehousing, distribution and manufacturing companies have invoiced more than $1 billion using Unleashed’s SaaS offering.

On average, these companies sell or manufacture 17.9 million different products per month. They raise an average of 176,000 invoices for those products every month.

These businesses have discovered they can obtain the software functionality they want, all wrapped up in a solid support channel, without paying a premium for unnecessary features. Competition among the many cloud software providers keeps the market lean, so there’s significant value on offer for users.

Just think about the warehousing company I mentioned earlier. No organisation that’s experienced such a high level of saving is going to turn its back on the cloud, and their experience is typical.

I think it is safe to say the cloud is not only here. It’s here to stay.

[Gareth Berry is CEO of Unleashed Software].

Unleashed Software 03 9044 4704 www.unleashedsoftware.com

It can pay to keep your feet on the ground These days, there seem to be on-premise and cloud-based software systems to suit every warehousing need. Robert Frandsen explains why he believes on-premise warehousing systems remain the best choice for Australian businesses.

C

OmPArING cloud and on-premise software can seem like comparing apples with oranges. It’s not just a matter of using different methods to deliver the software. The ability to customise a solution, the use of best practice processes, solution longevity and support are just a few of many areas where the two types of software differ. Choosing the right approach requires careful consideration and an honest assessment of what’s most important for your business.

For a true SmE the benefits of Software-as-aService (SaaS) or a cloud-based software solution can outweigh the risks, but the jury is definitely out for any company of considerable size and the jury is even out for small companies who rely on agility and flexibility for their competitive edge.

To whittle down the list of solutions, start by shortlisting only those that offer the features and functionality you currently require. Given you will want your choice of software to last well into the future, you will also need to give thought to the functionality you anticipate you’ll need as your business grows, or as you expand into new directions.

At the same time, steer away from being the 18 AUGUST 2014 Manufacturers’ Monthly

Because every warehouse has its own slightly different way of working, it is rare to find a solution that instantly matches your exact requirements. business owner who won’t pay for IT, doesn’t understand IT and thinks it’s a necessary evil. Don’t make decisions based on lowest cost and then end up paying much more over time and experience considerable frustration.

Getting what you want Because every warehouse has its own slightly different way of working, it is rare to find a solution that instantly matches your exact requirements.

This leaves businesses with a choice of either adapting warehouse processes to suit the software, or customising the software to suit the business.

The more successful the warehouse operation, the less likely you will want to change the processes that work for you. It is here that the differences between on-premise and cloud solutions start to become apparent.

The log-in, subscribe and get started model of cloud software leaves little flexibility for customimanmonthly.com.au

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Technology IT@MM sation. Developers manage to keep online software subscription prices low because they offer a standard set of products accompanied by a standard support package.

If you are looking for the flexibility to customise software, you’re going to need an on-premise solution from a vendor with a strong development and support team that has experience working in your industry sector.

Integration and traceability The nature of your business will play a big role in determining which type of software is most suitable for your warehouse.

For manufacturers involved in the food, oil or chemical industries having systems that support traceability is a no-brainer. Compliance dictates the ability to track and trace all the way up and down the supply chain in case of problems that make a recall necessary. Even among assembly manufacturers, there’s a growing number of organisations that rely on traceability to ensure they know what ingredients or components are going into a product, and where they are going during the production process.

Full traceability demands monitoring a variety of elements including batch numbers and use by dates of raw materials, as well as batch numbers of finished goods. To achieve this, you need to be able to capture the movement of ingredients through the production process, plus you must know what’s in your warehouse.

The standard tools of warehouse management include a variety of third party peripherals, from handheld scanners and bar code systems to touch screens. Integration between the tools and your warehousing system enables data to be uploaded and stored in a way that brings together pre-production, production and distribution data.

At present, a large number of cloud-based SaaS systems are constrained in their integration options.

They can’t always connect with an organisation’s peripheral devices which means stock movements may not be captured and traceability is compromised.

Integration limitations can also affect the warehouse management system’s ability to share data with other critical business systems such as manufacturing and finance ap20 AUGUST 2014 Manufacturers’ Monthly

It pays to be cautious and to check out vendors and products very carefully. plications. With little opportunity for customisation to solve such problems, cloud solutions can end up complicating business processes rather than streamlining them.

These problems are bound to change in time as the market matures, but right now, the lack of flexibility makes SaaS something of a grey area for the warehouse.

When you own your data Businesses often report feeling greater control and security when using on-premise solutions. There’s no question who owns the data because unlike the cloud, your data resides on hardware that you own, which is located on your premises.

You know that the data is secure

“

The simple fact about SaaS is that the need to maintain the asset has not disappeared... and is being managed with integrity.

And if any problems do arise, you are in a position to take appropriate measures.

When working in the cloud, even simple issues such as a failed internet connection can bring your warehousing and production systems to a halt. Lose access to your data and the company can’t work. If you’ve

chosen a software vendor who then goes belly up, you’ll find you’ve lost not only your data, but also the application.

This is by no means intended to imply that every SaaS offering is unreliable or that every SaaS vendor will fail. There are some wellestablished vendors out there who have taken their on-premise software to the cloud But equally, there are a great many new and untried companies competing in this still-tomature market. As a buyer, it pays to be cautious and to check out vendors and products very carefully.

Competition fosters creative pricing There’s no denying that the warehousing software market has been shaken up by the steady stream of new offerings over the past decade or two, and that this is good news for business users.

The lower priced solutions of the cloud have forced vendors to become more competitive and creative in the ways they package and sell their applications.

However, IT SaaS warehousing vendor spin is all about removing headaches, costs and risks associated with IT investment, while at the same time promising like-for-like functionality and flexibility at a greatly reduced price. The facts of the matter are completely the opposite. By outsourcing all IT matters to multiple disparate vendors, manufacturers can increase their costs and increase risk.

Imagine winning that blue chip manufacturing contract you’ve been working on for two years, only to find that your overseas software vendor cannot and will not support the EDI format required to start trading. Imagine the introduction of a new resource hungry government compliance requirement. While local vendors will comply and offer their customers automated solutions, offshore vendors may not and the business owner has to increase headcount to comply. This happened in the transport sector when new driver fatigue compliance was introduced.

The simple fact about SaaS is that the need to support and maintain the asset has not disappeared, it’s just not the owner’s responsibility anymore and someone will still be getting paid to provide that support and maintenance and the manufacturer will be paying their share.

In an evolving software environment there are plenty of opportunities for buyers. The challenge is finding the solution that can do what you want, that is heading where you want to go, and which offers the lowest risk profile.

In my mind, that makes onpremise software the right choice for the times.

[Robert Frandsen is CEO of Infomtion, a provider of ERP software and supply chain solutions.]

InfoMotion 1300 674 994 www.infomotion.com.au manmonthly.com.au

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Try your options before you commit Warehousing decisions can be critical to success. And 3D modelling can help you try out what’s possible, make those decisions and put yourself ahead of the competition.

Matt McDonald reports.

I

f you’re setting up a new warehouse, it makes sense to spend a bit of time and money on it. It pays to do some thinking, do some planning and come up with the best, most efficient warehouse design for your business.

Automation and technology have presented us with plenty of warehousing options. So how, as a business owner or manager, are you supposed to choose between these options?

By testing them with 3D modelling software.

An example is Demo3D, a controls testing, simulation and emulation product. Available locally from Glenvern Associates, this is a versatile, yet powerful design, prototyping and pre-sales modelling tool.

“We have had Demo3D in Australia for a few years now but I would say it’s been in the last two years where people are really standing up and taking notice of the software’s abilities,” Glenvern’s Director Alec Poulton told Manufacturers’ Monthly.

He explained that this has particularly been the case “...as the whole manufacturing and warehousing scene becomes more competitive and everyone is looking for that edge to help reduce costs and optimise design layouts, process flow and resource utilisation.”

Demo 3D can be used for a wide range of materials handling and automation applications, but in the area of warehousing, it is recommended for use by system designers, system integrators, as well as end users or operators of warehouses.

According to Poulton, the software is suitable for companies of all sizes.

“We’ve got small two people companies using it, right up to huge companies like Intralox, with thousands of employees,” he said.

So what can it do exactly?

It can design, test and simulate new and existing warehouse facilities.

“We can ‘bring to life’ a CAD drawing of a new layout, plug in the manmonthly.com.au

Demo3D is intended to allow users to understand how their warehousing concepts will operate. functional parameters and allow the user to understand how their concept will operate, see any potential bottlenecks or issues and then run a simulation or ‘what-if scenarios,” Poulton explained. for example, if you are thinking about the best way to design loading/ unloading stations and how to best integrate them with the rest of the

“

No matter the scenario, a working example is usually available within 24 hrs… warehouse (including workers), you can design what you want, run it on Demo 3D and see how well (or poorly) it runs in the virtual world.

“We can model the simplest manual handling warehouse, to the most sophisticated automated storage retrieval system (ASRS) system.”

And for existing layouts, Demo3D allows the user to test concepts and

understand how any future upgrades or process changes will integrate with the existing system. A simulation of future upgrades would then provide the data required for proof of concept and the justification for spending capital.

There is a series of catalogue components available with the software and end users are also able to create their own custom components and catalogues.

Some of the included catalogue items for warehouse applications are components for forklifts; AGV and RGV (as well as Path System for these); loading/unloading stations; a variety of manual handling racking; a variety of automated racking including numerous configurable ASRS systems; human pickers for manual handling; robotics and palletisers.

Asked how much expertise is needed to use the software, Poulton said that it is designed to be “as simple and flexible to use as possible.”

The task of modelling a straight conveyor system, for example, can take just a couple of minutes to get a working model up and running.

“Typically our tutorial models get done in 20-30 minutes and that’s a

fully functional model,” he continued. “Then some of the larger stuff you might spend a couple of days on.

It depends what you are trying to get out of it.”

And to date it has been able to handle just about any task thrown at it.

“Sometimes we get presented a potential scenario,” Poulton said.

“And if we haven’t been able to do it on the spot, we’ve got great support from the software developers and they usually can get me a working example within 24 hours which has been pretty impressive.”

But the philosophy behind such modelling is quite simple. Its intention is to provide real-time benefits that can be measured in time and money.

It is intended that by cutting commissioning times, producing more predictable outcomes, lowering investment risk; and producing faster ramp times and safer testing, the software will not only pay for itself but also set up businesses for success.

Glenvern Associates 03 9712 0088 www.glenvernasc.com.au Manufacturers’ Monthly AUGUST 2014 21

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3DPRINTING What’s behind the 3D printing boom?

Terry Wohlers has been tracking the growth of the additive manufacturing industry since the 1980s. Brent Balinski spoke to Wohlers, keynote speaker on day one of Inside 3D Printing Melbourne.

Y

ou can ask just about anyone and they will tell you additive manufacturing/3D printing has never been more popular. or you can ask Terry Wohlers, the founder of the consultancy Wohlers Associates, if you want the definitive answer.

His firm has been publishing the annual Wohlers Report for 19 consecutive years. The report is regarded as the most comprehensive, most reliable collection of information and analysis on the global market for the industry.

Manufacturers’ Monthly spoke to Wohlers not long after the Inside 3D Printing event debuted in Seoul.

“About 5,000 people attended,” he said.

Wohlers - whose seminar on 3D printing at an expo in 1988 led to his very first consulting client - says that a trade show two or three years ago would see nowhere near the same amount of interest.

“If you were to offer an event on the subject, if you had 200 people together you’d be feeling pretty good about it,” he said.

Released in May, Wohlers Report 2014 - featuring input from 29 system manufacturers, 82 service providers and 70 expert authors and contributors - estimated that the global industry grew to $uS 3.07 billion last year. It increased 34.9 per cent in 2013, following bumper growth in the two previous years.

“For an industry that’s more than 25 years to see that kind of growth, 32 per cent growth on average for the last three years - I don’t think you can find another industry where we’re seeing that kind of growth,” he said.

Wohlers opened day one at Melbourne’s Inside 3D Printing series event. It was be one of more than 110 keynotes he has made, including at the very first installment of the series in New York in 2013.

According to his research, there’s

22 AUGUST 2014 Manufacturers’ Monthly

At expos and elsewhere, 3D printing is huge. a number of reasons behind the explosion in 3D printing.

This includes the confusion between what personal, desktop printers can do (leading to some believing an entry-level machine can do what a production system costing hundreds of thousands of dollars can do) due to sometimes-inaccurate, sensationalist reporting. And yes, the last thing includes some of the coverage around 3D printing guns.

The role of quality journalism has been important too, with Wohlers citing attention from The Economist as very important for raising awareness, starting with its now famous “Print Me A Stradivarius” front-page story in February 2011. other reasons have included the uS government’s focus on the technology - such as America Makes, an additive manufacturing hub in Youngstown, ohio - which has prompted other countries to try and keep up.

“America Makes, which is the

National Additive Manufacturing Innovation Institute [was important],” explained Wohlers.

“In Washington the White House started this program in 2012 - and we’re very much a part of it by the way, so I’m a little biased - [and] we think that it was something that other countries learned about and so they thought ‘if the united States is investing in this to the level they are, we need to do the same thing’.”

Metal mania Some of the areas that stood out in 2013’s boom year from 3D printing include personal, low-cost machines (up 104 per cent), and more interestingly from an industrial point of view, metal additive manufacturing systems (up 75.8 per cent, with 348 machines sold worldwide).

“Mainly the medical and aerospace industries are beginning to embrace this technology for actual production,” he explained. “That’s where the sales are beginning to

come from.”

From dental copings to hip sockets, the customisability of additive manufacturing and the biocompatibility of titanium - out of which 90,000 acetabular cups have been made - have helped drive demand for metal printers.

Possibilities including lighter, stronger plane components, saving fuel, consolidating parts and better performance are also driving investment in additive manufacturing by aerospace companies. Examples include Airbus, currently testing new brackets for its A350, and GE Aviation’s high-profile LEAP Engine project.

According to GE, the LEAP will enter service in 2016, on three models of planes including the Airbus A320neo.

Each engine will include 19 additively manufactured nozzles, which the company says will be five times as durable and require only a fifth of the number of brazes and welds.

Wohlers considers the overall development in metal 3D printmanmonthly.com.au

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ing particularly exciting, with great advancements made in the mechanical properties of parts.

“In some ways metals have come further in 10 years than the plastics have come in 25 years,” he offered.

What’s the story in Australia?

In Australia in particular, investment has been nothing like what has been seen elsewhere.

“Australia didn’t make the chart,” said Wohlers.

“It’s a little bit too small of a segment. It’s not one of the major countries to adopt the technology.”

According to Wohlers Associates figures, since 1988 - the year 3D printing was commercialised - Australia’s investment in professional-grade production units represents 1.4 per cent of the total sold.

In terms of metal additive manufacturing, the veteran consultant believes that the country has great potential with titanium, especially if the processing of the material can be made cheaper.

Australia has the biggest deposits of titanium ore in the world.

As is the case in other areas - such as natural gas - a case could be made for value-adding to the raw material the country possesses in abundance for a better return. Especially when, as for example with local ultrafine merino wool, the material is processed and then imported back to Australia.

The CSIRO has previously pointed out, processing one per cent of local ore that is exported and creating highvalue products with this would be 100 times more sustainable and create the same value.

Similarly, Wohlers believes that a “cradle to the grave” approach to the metal, using additive manufacturing, is worth examining.

“Particularly for medical products, aerospace products, which are two areas where Australia’s quite strong in, and in consumer products too,” said Wohlers.

“And especially if the price can be driven down on the production of the material.”

A final word on education The possibility of designing parts with construction that was simply impossible beforehand - assuming that a part manmonthly.com.au

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needed to be created so it was possible to mould or be fashioned through subtractive methods - is one of the major benefits of 3D printing, regardless of the material.

“You have far more freedom, more flexibility, so you can consolidate parts digitally,” he said. “Because these machines don’t really care about how complex a part is, for the most part.”

As other experts on the technology often point out, one of the obstacles to getting the most out of additive manufacturing is getting across to potential users what’s possible.

This includes reducing part counts through consolidation, cutting down weight through lattice and mesh structures on the insides of objects, and creating unconventional shapes.

Of note is designing with topology optimisation - “letting mathematics decide where to put the material to optimise the strength to weight ratio,” explained Wohlers.

This process was used on the Airbus bracket, mentioned above.

“The part looks very bionic in its shape, and yet it gets the job done,” said Wohlers.

“It’s using the minimal amount of material but at sufficient strength to ensure that it won’t deform or break.”

(Incidentally, Wohlers is also an author of CAD textbooks. His popular Applying Autocad is in its 20th edition.)

In the future, overcoming the old idea of “design for manufacturing” will be easier, but there’s work to be done.

“The challenge, of course, is to educate and train designers and engineers to understand what are the capabilities and limitations of these processes,” he explained. “...We have a lot of teaching institutions buying equipment and providing learning opportunities for students, but is it enough and are they doing it well?”

[Brent Balinski has been a journalist at Manufacturers’ Monthly since 2012, and is particularly interested in 3D printing and innovation. Find him on Google Plus at https://plus.google. com/+BrentBalinskiCirrusMedia].

Wohlers Associates www.wohlersassociates.com Manufacturers’ Monthly AUGUST 2014 23

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3D PRINTING 3D Printing lands in Melbourne The CEO of Mediabistro, which brought its Inside 3D Printing Conference and Expo series to Melbourne last month, has called the first Australian event an “unqualified success”. Brent Balinski writes.

I

NSIDE 3D Printing was held at the Melbourne Convention and Exhibition Centre on July 9 and 10. According to Alan Meckler, Mediabistro’s CEO, the attendance figure was between 1,200 and 1,300.

“It was about the same size as Brazil but smaller than Korea; about the same size as Singapore, and smaller than the US,” he told Manufacturers’ Monthly.

“In terms of the population, proportionately, it did very well.

“You had a lot of people here who were trying to learn about it, thinking it might be a field they want to move into and you have manufacturers saying that this is the wave of the future.”

The turnout for the two-day event showed 3D printing had an “immense future” in Australia, according to Meckler, who is also a founder of the first mutual fund concerned exclusively with the technology, 3D Printing and Technology Fund.

The maiden Australian event in the series was announced in December. It followed the 3D Print[were] the exhibitors and the quality of the semiing Expo – now in its second year – as the second nar topics,” explained Meckler. major trade show held this year in the country High-profile Australian presenters included devoted to the burgeoning additive manufacturing RMIT Professor Milan Brandt (day two’s keynote industry. speaker) and the CSIRO Titanium Theme Leader According to Wohlers Associates, whose founder John Barnes. and president Terry Wohlers was the first day’s In comparison to the number of attendees in keynote speaker at the event, the global market for Melbourne, the Seoul leg of the series attracted additive manufacturing/3D printing grew at 34.9 roughly 5,000. per cent last year to be worth $US3.07 billion.

According to Meckler, between 15,000 and Meckler said that of the 1,300 at the Australian 20,000 are expected for the Hong Kong instalment event, about 200 registered and paid, with tickets of Inside 3D Printing on August 26 and 27, and a priced at $249. greater number later in the year when the event “I think the exhibit, which was not huge, was MA 0 8 1 4 _ 0 0 0 _ S O U 1 2 0 1 4 - 0 7 - 1 1 T0 8 : 5 3 : 2 4 + 1 0 : 0 0 makes its way to mainland China. very representative of 3D printing. So, I would say,

24 AUGUST 2014 Manufacturers’ Monthly

“We obviously have high expectations,” he said.

“We think our biggest one will be in Shanghai in November.”

Mediabistro www.mediabistro.com

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Time to get on board Globally-renowned lasers expert Milan Brandt believes there’s great potential for Australian companies who want to explore 3D printing, but they’d better act fast. He spoke to Brent Balinski.

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HouGH some have criticised the country’s level of public investment in additive manufacturing compared to elsewhers, according to Professor Milan Brandt, our research institutions are home to a great deal of AM capability.

Brandt has been the Professor of Advanced Manufacturing at Royal Melbourne Institute of Technology since 2010. He gave the opening keynote address on day two of the Inside 3D Printing conference (on “Additive Manufacture: The Next Industrial Revolution”).

He believes that the adoption of additive manufacturing is a must for local manufacturing companies, that the matter is urgent, and that facilities at research institutions (such as RMIT’s Advanced Manufacturing Precinct) should be examined by those in the industry.

“In terms of our interaction with industry here in the AMP, we try to demonstrate to industry what the benefits are of additive compared to subtractive or traditional manufacturing,” Brandt told Manufacturers’ Monthly.

“So we can look at developing their new product together with them and saw that testing is done and they’re confident they can meet the product specification or objectives.

“They can then buy their own machines and we can help them translate all the knowledge that was built in the research in their manufacturing.”

RMIT’s $25 million AMP was opened in 2011, and has a variety of polymer and metals-based additive manufacturing technologies.

Brandt - who is the lone Australian among the contributors singled out in the acknowledgements section of the bible for the global AM industry, Wohlers Report 2014 - notes that most of the

manmonthly.com.au

investment in metal 3D printing technology is around Melbourne.

And the bulk of it is in research institutions, which Brandt believes have a crucial role to play in exposing local companies, particularly those with an export focus, to the technology.

There have been companies investing in metal additive manufacturing - such as Amaero Engineering, Brenco and Breseight Australia - though the take-up has been slower than elsewhere.

“No-one is really using it for production purposes,” said Brandt. “I think some are close, but no-one is making production parts.”

The precinct that Brandt is technical director of is concerned with research in aerospace, sports, automotive and bioengineering, with the latter a particularly interesting area for additive manufacturing.

PhD research at the university in collaboration with St Vincent’s Peter Choong has developed what is called Just In Time Bone Specific implants.

“The idea being that the patient can be on the operating table and he can then cut the cancerous part out, we would scan that volume of the bone and print the part at the same time while the patient is on the operating table,” said Brandt.

The process creates custom bone sections made by direct metal deposition technology, and its application is in the removal and replacement of cancerous bone.

“We have a provisional patent on how we make these lattice structures,” said Brandt.

The sections have a structure optimised to match stress and buckling criteria. If perfected, it would mean less tissue needed to be removed and would speed up recovery from the operation.

Smaller parts can be created in around an hour “This is really revolutionary in the sense that hospitals can really become manufacturing factories,” he said.

“So that’s not happening at the moment, but that’s where we’re going,” explained Brandt, who believes it will be a mere five to ten years before the JIT process is widespread.

Those behind the project believe it has great potential, with Melbourne’s strong reputation in biotechnology, as well as 15 major medical research institutions and seven teaching hospitals in the city. outside of bioengineering, Brandt is enthusiastic about the potential that can be brought to the local industry through additive manufacturing, and believes locally-based SMEs are of great value, both for commercialising the IP and creating opportunities here. Time is important, though, and the message is one of urgency.

When asked what might happen if local businesses don’t take up additive manufacturing and leave that to other countries, Brandt was blunt.

“This technology’s not going away. It is really growing,” he said. “I think there is a limited window of opportunity. And if they don’t adopt it in some of their products they’ll be disappearing from the local scene.

www.rmit.edu.au

Manufacturers’ Monthly AUGUST 2014 25

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3D PRINTING New Keech business seeking global relevance Third-generation company Keech has launched its new subsidiary, Keech Advanced Manufacturing 3D, with plans to put Bendigo on the additive manufacturing map.

By Brent Balinski.

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he group of companies, best known for its steel castings - which are used globally by some of the biggest mining firms - announced its plan to be a major provider of 3D printing technology to its region last year.

Its use of additive manufacturing goes back “three or four” years, according to CeO herbert hermens, and to experiments involving a Stratasys uPrint Plus.

The experiments were prompted by skills issues in the patternmaking subsidiary, BPM 3D Technologies, which was this year re-branded as Keech 3D. “What became evident at the time was that a bottleneck in our organisation was our patternmaking business,” hermens told Manufacturers’ Monthly at KAM 3D’s launch last month.

It was hard to get enough patternmakers, and those who were suitable tended to be in the twilight of their careers.

“We started to investigate what are our options,” he said.

“CNC cutting of patterns? We’re already doing that, but it’s not fast enough. And it doesn’t allow us to do undercuts and all this sort of stuff.

Wood patternmakers know how to do all this fancy stuff. And a CNC machine, even one with six axes, it just couldn’t do what we wanted to do. So that’s what became a dark alleyway.”

The company recognised 3D printing is suitable for patternmaking, and is excellent for reverse engineering old patterns through digital scanning.

The willingness to experiment with a novel solution was consistent with the company’s tradition of innovation and adaptation, believes hermens, beginning with the thirdgeneration, 80-year-old company’s founder Gordon Keech Senior.

“One of his first statements was ‘we will be an innovative organisation’,” said hermens.

“Keech wouldn’t be here today [without a willingness to change] because they would’ve gone under, 26 AUGUST 2014 Manufacturers’ Monthly

Keech plans to add to its collection of the four machines currently up and running. the way a lot of foundries do, saying ‘we’re a foundry that does this. This is what we are.’

“But because this was structured within the organisation, where they’ve moved from making hand tools to making axes to making ground engaging tools to making stuff for the defence industry, for the rail industry, for the aeronautic industry.”

In the short-term, the company sees its additive manufacturing division as having great opportunities in prototyping and short-run manufacturing uses.

The launch of Keech’s new company was a step along a path from “local significance to global relevance,” according to hermens.

Keech’s ambitions are high, with plans to be a major national supplier and to add to its collection of four machines currently up and running.

The most recent addition is the company’s Stratasys Fortus 900 mC, with a build envelope of 914 x 610 x 914 mm and the ability to print in several different materials. Its

capacity fits with the company’s plans to target short-run production. hermens pointed out that investing so heavily in equipment (their collection of printers was acquired for about $1 million all up) was one thing, but engineering knowhow was what provided value to those needing solutions.

“We’re not talking about technicians at machines, we’re talking at people with the input to get the maximum value out of it,” he said.

“We’ve spent a lot of time training these people, so that when a customer comes to us we can actually respond.”

Along with the new Fortus and old UPrint machines, the company has invested in a Mcor colour printer that uses paper as a feedstock, and an Objet 30 Pro photopolymer machine.

It received a little help last year through a $141,700 Investing in Manufacturing Technology grant from the Victorian government.

The state’s manufacturing minister David hodgett said that the government co-investment was

worthwhile, assisting the company to continue to innovate and create higher-value local jobs.

“So it has wonderful applications and it’s a local company here, it’s about the government supporting them in their manufacturing business here in Bendigo,” he told Manufacturers’ Monthly.

When asked if government at state and federal levels had a role to play in supporting the local industry, hermens said that there definitely is, in areas including investing in education and research institutions, flexible labour laws, and helping local businesses to compete globally.

“It needs to make sure we’re supported by providing proper training facilities, they need to also make sure that there’s a facilitation to allow manufacturing to adapt and adopt the latest technology from anywhere and everywhere in the world,” he said.

Keech 02 9648 3100 hwww.keech.com.au manmonthly.com.au

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IndustrialDOORS Retractable idler frames for mineral conveyance Gold Coast engineering firm ESS has developed a heavy-duty, retractable idler frame that precludes the need for most scaffolding and work at heights equipment when changing conveyor rollers. Ben Hagemann writes.

T

facility, thousands of idlers in total, in a way that hE most crucial type of plant at any ship would make it safer and easier for shutdown crews loading facility is the conveyance for to perform roller change-outs. materials. Without conveyor belts, nothing gets onto the ship, and without maintenance the conveyors don’t run.

The hazards of maintenance By the same token, the most important aspect of Changing rollers is traditionally quite a time performing maintenance on industrial plants is to consuming, often dangerous task. It must be ensure that safety of workers is paramount. performed at heights over land and sea, and It was with this focus on safety that Gold Coastthis usually requires scaffolding and fall arrest based engineering firm ESS took on a design equipment to ensure worker safety. challenge at one of Australia’s largest coal loading That level of hazard control greatly increases terminals on the eastern seaboard. the time and expense spent on basic maintenance, M Aclient’s 0 8 1 4 _ 0 was 0 0 to _ upgrade R E C -the idler 1 2 0 1 4 - especially 0 7 - 0 7 when T 1 3the : 1cost 1 :of1scaffolding 2 + 1 0 : –0 and 0 waiting The brief frames on conveyance systems throughout the for a scaffold crew – is thrown into the equation.

The HDTM Idler Frame is manufactured in RHS, in either stainless or galvanised steel.

Reports from the client on this project indicated the usual crew size for performing roller maintenance on conveyors would be two or three workers, plus scaffolders to erect and dismantle work platforms, or an Elevated Work Platform with a full time spotter.

To tackle these problems ESS collaborated with the client to develop an updated sliding idler

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ESS product development manager Terry Thiew oversaw the quoting and design phases of the project, which involved manufacturing and installing new idler frames to create a system that would still be compatible with the original rollers.

Thanks to the ESS background in conveyer idler manufacturing since its original incarnation as Martin Engineering, Terry Thiew was able to bring a wealth of experience to the client that would ensure their satisfaction on design innovation, service and price.

Terry Thiew said that ESS has been manufacturing idler frames for thirty years; however a modern approach was needed to make the overall design more robust for longer life, and safer for maintenance staff.

“Our idlers were a Martin Engineering design, but we refined that design about four years ago,” he said.

“We are still streamlining the system with every new job, we’re constantly developing it based on the same principle, but we’re just improving the product and the way we manufacture it.”

Key concerns Of utmost concern for Terry and ESS was ensuring and improving on existing safety standards on site, particularly with regard to work at heights and over water, but also with a focus on manual handling and pinch points.

“Our system is quite suitable

28 AUGUST 2014 Manufacturers’ Monthly

for anywhere where you’ve got an elevated conveyor, where someone has to work at heights, places where you previously had to go up in an EWP basket, and have to manhandle heavy rollers in and out of the basket.”

Removing the rollers from idler frames can be quite physically difficult. The fittings can be jammed in with extended use and ore dust, and often need to be beaten out with a hammer.

Combine that with the weight of the roller and being forced into an

“

Of utmost concern for Terry and ESS was ensuring and improving on existing safety standards on site... awkward working position, and suddenly the risk of sustaining a back injury from manual handling becomes much greater. Workers sometimes have to climb into the conveyor and lie on the bottom belt to push out the rollers, which is far from ideal as a working position.

The solutions to all of these problems can be found in the ESS heavy Duty Trac-Mount Idler Frame.

The ideal solution Designed and manufactured by ESS, this revolutionary upgrade to conveyer plant has a range of benefits to bring to any material handling facility, manmonthly.com.au

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on various aspects of safety. whether in an underground mine or for ESS builds their idler frames with a ship-loading operations over-water. wider footprint than other manufacturers, The key principle of the hDTM Idler Frame is that it slides out from the convey- which ensures stability on the conveyer.

Theiw said the hDTM frame features a or, perpendicular to the direction of the stopper pin which prevents the frame from conveyance, along a custom-built track. sliding all the way out from its mounting.

The hDTM Idler Frame is manu“Some other brands, as you withdraw factured in RhS, in either stainless or them, can disengage from their track and galvanised steel; however ESS recomstart to fall in one direction or the other, mends stainless steel for longer lasting which is not secure and creates hazards performance. such as pinch points,” he said.

“We’re really pleased with how they “Ours is fully enclosed around the slides function, everything works extremely and is very stable all the way out. well,” Thiew explains.

“It self-supports until it finally disen“The bar does not need to be greased, gages from the track.” because when the whole unit is built in The ESS frames are 80 per cent strongstainless steel, everything just slides very er than most traditional idler frames, as a nicely,” he said. straight bending calculation, and quite a “The ones installed on site have been bit stronger in torsion, or twisting strength in situ, out on the wharf, in a salty envias well. ronment, for about four years, but they “If you see them in service, they’re very still just pull out straight away. rigid,” Thiew said.

“We do offer a galvanised option, but “I was just looking at some on site we encourage people to use the stainless a month or two ago and they run very option.

The HDTM Idler Frame slides smoothly, there’s no movement or vibra“Stainless will certainly last for the life out from the conveyor, tion, they’re very rigid.” of the plant.” perpendicular to the The hDTM frame slides easily from Other companies offer similar proddirection of the conveyance, A 0 6 1the 4 _ESS 0 0 hDTM 0 _ AS S Frame 1 2 each 0 1 4side - 0of5the - 0conveyor 2 T 1 4 belt, : 0 4and : 4dis1 + 1 0 : 0along 0 a custom-built track. ucts,M however Idler engages the roller easily from the belt, has several design features that improve

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Manufacturers’ Monthly AUGUST 2014 29

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Industrial DOORS especially in the case of v-returns. however in the case of flat returns a little extra help is required.

First is the belt lifter, which ensures the roller will not have to be dragged against the friction of the belt.

The belt lifter is a small rotary mechanism, welded to the mainframe of the idler.

An operator simply has to use a spanner to rotate the hex nut control and it lifts the belt just enough to achieve 10mm of clearance for easy roller removal.

The hDTM also integrates a pair of drilled holes in the frame, one set designed for the retaining bolt which holds the frame in place, but another offset pair of holes is left empty.

The offset pair allows maintenance staff to insert a podger or prybar, which they can use to easily lever and break any stiffness in the frame from long use.

One of the best things about the hDTM idler frame is that it is light enough to be easily handled in cases where it needs to be slid all the way off its track, so there’s no need for any other lifting devices, such as chain block or come-along, in order to remove it from the conveyor frame.

Most importantly, having the ability to safety slide the idler frame out from the belt means workers can easily access the rollers without entering the belt, without scaffolding underneath the belt, and without any need for a fall arrest harness.

Improving roller performance ESS have also designed a fine angle adjustment for angled rollers, which allows a progressive angle change from flat return to V-return, or vice versa, to be smoothly adjusted during or after installation.

For example, on carry-side idlers where there’s a transition from fully troughed down to the head pulley where the belt lies flat, it can be very hard to measure what those angles are and to get them positioned in exactly the same place.

“So we did some very accurate measuring of the rollers and made them to duplicate the existing idler frames, but even then in the existing ones there were some gaps between the roller and the belt,” Thiew said.

“We built in a fine-angle adjustment for the trough rollers, so that 30 AUGUST 2014 Manufacturers’ Monthly

Changing rollers is traditionally time consuming and often dangerous. we could adjust the angle to 0.5° increments over 3°.

“That allowed us to set all of the idlers so that they were touching the belt and supporting it correctly.”

Enjoying the benefits Comments from the crews who have been involved in maintaining the new idlers indicate the remarkable ease with which rollers can now be changed.

One supervisor on the coal loading facility told ESS: “I’ve used every retractable idler on the market, and now I’ve finally found one that works.”

The biggest attraction for clients to the ESS hDTM Idler Frame upgrade is the huge saving in time and man-hours when performing maintenance.

Where the client had reported idler maintenance taking two to three workers anywhere from an hour to an entire shift to change the rollers on a single idler frame, now the same jobs can be done by a single worker, sometimes in less than ten minutes.

This means massive maintenance cost savings to the client, enabling the ESS hDTM Idler Frames to quickly pay for themselves, and continue to save precious income for the company and its shareholders.

ESS general manager Chris Wilson said he has the highest regard for the way his staff engages with the client.

“From my experience here, all our guys that work on site do so in a collaborative way,” he said.

“They work with the client to identify issues and respond to the safety requirements and hazards on site, and with the high quality of our products, in design and manufacture, we’ve been very successful in being able find solutions for whatever the client needs.”

ESS Engineering 1800 074 446 www.esseng.com.au

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Motors& DRIVES Airport baggage receives an upgrade Most air travellers would jump at the chance of an upgraded ticket. At sydney Airport’s terminal 3 it’s an upgraded baggage handling area, incorporating drive equipment from sEWEURODRIVE, that is giving passengers enhanced service.

I

t’s a scene that is repeated thousands of times daily, in airports all around the world. Collect the boarding pass. Drop the bag at the check-in counter. Proceed to the departure lounge, sometimes with time to spare and sometimes in a last minute dash.

Not so familiar to most travellers, though, is the technology that delivers baggage to the aircraft once the items disappear from view at the check-in point. Behind the scenes is a sophisticated system of conveyor lines, sortation, storage facilities and controls, all designed to ensure that each bag proceeds efficiently to the right aircraft at the right time. By improving these systems, terminal operators are able to increase capacity, cut costs and improve service to their customers.

Keeping the conveyor lines rolling is clearly fundamental to the smooth running of the terminal. Consequently, choosing the most appropriate motors and drives to power the conveyors is a major requirement for any new system.

Martin Broglia, sEW-EURODRIVE sales Manager NsW, says that in addition to reliability, energy usage is an important consideration for designers. “For these projects, the specifications generally require a solution that reduces energy costs. sEW’s decentralised technology MOVIGEAR DAC, with its direct Asinterface communications, achieves this due to the high efficiency of all its components – gear unit, motor and electronics all within one product.

And in turn, this shortens the payback period,” he says.

Automated bag store As Qantas geared up for the endof-year rush in 2013, Bill Mason, Projects Manager at ICM Airport technics Australia, oversaw the design and installation of such a 32 AUGUST 2014 Manufacturers’ Monthly

Keeping the conveyor lines rolling is clearly fundamental to the smooth running of the terminal. baggage handling upgrade in one of the airport’s busiest departure terminals. ICM chose the latest version MOVIGEAR DAC drive system from sEW-EURODRIVE for the upgrade, based on its power saving features and reduced requirements for spares holding.

Following the upgrade, the resulting increase in capacity has dramatically increased throughput at the terminal. this has contributed to facilitating the Qantas Group moving the operations of QantasLink from terminal 2 to terminal 3, within the existing building’s constraints.

Key to the increased capacity was the installation of an automated bag store. Mason says that because of the new storage facilities, which can accommodate 200 bags at a time, capacity has been extended to over 10,000 bags per day. Bags that have been checked in well before flight time are held in the new automated bag store on ‘early arrival’ conveyor lanes. there are a number of ways of configuring automated bag stores at airports. “We use standard conveyors, with bags packed tightly together on

ICM chose the drive system from SEW-EURODRIVE for the upgrade, based on its power saving features and reduced requirements for spares holding. storage lanes using smart technology,” says Mason.

At the departure point the baggage is placed in unit load devices (ULDs), which are the aluminium containers familiar to passengers who watch their baggage brought out on trolleys and loaded in to the aircraft hold. the new storage facilities include an integrated batch building ball deck, consisting of a large array of steel balls that can rotate in any direction.

the ball deck allows the ULDs to be positioned easily, both for storage and in readiness for assembly for the appropriate flight. this also allows preloading of batches of bags into ULDs well before flight departure.

Prior to the upgrade, early arrival bags were manually removed from the conveyors, stored on a trolley, and then manually returned to the conveyors in time for departure. “It was a lot more handling,” says Mason. “In manmonthly.com.au

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fact, each item would be handled three times instead of once.”

In addition to the automated bag store, the upgrade included a set of general improvements, with ICM’s team replacing the high level control and SCADA systems. As a result of the upgrade, and the ability to temporarily store the bags in a fully automated bag storage area, baggage handling supervisors can accurately call the bags down to the handlers in a controlled and precise manner.

The supervisors can see how many bags are in the store for each flight and, while the store will automatically eject the bags according to their flight times, the supervisors can override the auto setting and call bags down in batches to specific destinations. This gives them far greater control and also means that the double handling of early bags is greatly reduced. In essence, this gives the supervisors the ability to tightly manage the baggage system and making the whole process far more efficient.

Driving the improvements With more than 10,000 bags being handled each day, reliability of the conveyor system is all important.

To keep the conveyors rolling, ICM required around 100 of the MOVIGEAR DAC drive units.

The design calculations confirmed a short payback period for the drives, which combine the motor, gears and drive electronics within a single unit and provide control communications via a standard AS-interface. This high level of integration resulted in fewer components being necessary for the conveyor system. In turn, this led to the reduction in spare parts requirements and a corresponding increase in the calculated availability figures.

Designed for maximum energy efficiency, the selected drives provide up to 50 per cent improvement over traditional systems. “Power consumption is very important for these projects. Power costs money.

Both the calculations and results for the drives have been fantastic to date,” says Mason.

“Delivery time was an important factor in the project too. SEW bettered their delivery time estimate, which helps immensely on tight project timelines.” manmonthly.com.au

Tuning the system Drawing on extensive experience with similar projects, SEW-EURODRIVE assisted during the design phase by specifying the size of the units required and working with ICM Airport Technics Australia’s engineers to optimise the system design. Mason’s team then carried out ‘whole of system’ tuning to maximise the throughput of the new baggage handling system.

“There’s no point achieving a rate of 100 items per minute in one area when another area can only do 20. You need to tune the whole system for maximum throughput,” he says.

To tune the new baggage handling system, ICM’s team used emulation

“

Capacity has been extended to over 10,000 bags per day... software packages set up specifically for the project. The initial step consisted of ‘zooming in’ to each element of the conveyor system, with typical elements comprising X-ray lines, baggage carousels, or simply sections of the conveyor system. The tuning involved tasks such as checking that PLC codes were correct for both optimal performance of the element and consistency with the overall system. With each element tuned for maximum throughput, the engineering team could zoom out and check the performance of the system as a whole. The engineers then conducted further refinements as necessary, in order to make the final adjustments.

Having worked with SEW-EURODRIVE equipment since 2005, staff at ICM Airport Technics Australia required minimal training.

With the baggage handling upgrade completed and a maintenance program in place, departing passengers from one of Sydney Airport’s busiest terminals will continue to enjoy shorter queues and faster check-in service long into the future.

SEW-EURODRIVE 1300 331 968 www.sew-eurodrive.com.au

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Is Australian Manufacturing Doomed?

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Manufacturers’ Monthly AUGUST 2014 33

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Motors & DRIVES How to select a variable speed motor Fuels can be more effectively converted to electricity in large-block combined-cycle power plants with an efficiency of more than 61 percent, writes Amin Almasi.

L

ARGE compressors in modern manufacturing plants demand drive powers in the region of 10-150 MW. Traditionally, they have been driven by gas turbines. The “all electric” concept seeks to eliminate the gas turbine and use variablespeed electric-motor drives.

The main benefit would be the added-productivity of the plant, from an average of around 340 days due to unscheduled and scheduled outages of typical gas turbine drive systems, to a theoretical 365 days every year.

Advanced electric motors and modern compressors in the clean-gas service theoretically do not need the routine maintenance (would require only a shutdown for periods of five to eight years).

Accounting for unscheduled outages of the compression units of three to five days per year, the compressor train still yields a minimum of 17 to 20 added production days, with associated huge revenue gains.

34 AUGUST 2014 Manufacturers’ Monthly

It is very important considering modern, large process plant production value of around 0.5-1.5 million dollars per day.

Other benefits associated with electric motor driven compressors are derived from the better controllability of variable speed drives, and the unlimited number of (soft) starts.

Electric motors are around 50 to

“

An induction motor using VSI technology provides robustness and simplicity

70 percent of the initial cost compared to modern gas turbines with the same ratings. Two-pole brushless synchronous motors in power ratings up to and beyond 100 MW have not been built in the past due to lack of

demand, and thus a little incentive for the manufacturers to build them.

From the manufacturer’s prospective there is no reason not to build large two-pole synchronous electric motors.

Their design, materials, manufacturing methods, and analyses (electrical, mechanical and thermal studies) are identical to those of twopole synchronous generators which used in many power plants around the world in ratings up to 400 MW (and above).

Higher speed applications, variable speed requirements and new component designs for large electric motor applications may impose some changes.

Sometimes, the qualification process for critical components is crucial and correspondingly extensive.

The detailed mechanical/ electrical design reviews, the rotordynamics analysis, the torsional review, the control issues, the RAM (reliability,

An example of the electrical facilities in a variable frequency drive. availability and maintainability) studies, and comprehensive network stability studies should be performed to satisfy both the operating company and the manufacturer.

Independent design reviews can provide the necessary neutral assessment of the up-scaled electric motor technology.

The design of the associated variable frequency drives (VFD) of the load commutated inverter (LCI) type, on the other hand, amounts to a downsizing exercise from existing high voltage DC (HVDC) technology and is less crucial.

Induction vs. synchronous The usual technology for electric motor driver uses an LCI (Load Commutated Inverter) converter associated with a synchronous two-pole electric motor. However, the VSI (Voltage manmonthly.com.au

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Source Inverter) technology and the induction motors are becoming popular option.

In this section, two technical solutions, the LCI (synchronous motor) technology and the VSI (induction motor) technology for the electric motor driver are compared.

Advantages and disadvantages of each option are described (the footprint, the torque pulsations on train shaft, harmonics, initial price, and others). In addition lessons learned from design, fabrication, installation, operation and maintenance of both solutions are presented.

Because of the reactive power consumption of its thyristor bridge, an LCI system cannot naturally power an induction motor. If this is the case, the forced commutation circuits would have to be added, resulting in a very complex, costly and less reliable solution.

The VSI or “Voltage Source Inverter” uses a capacitive DC link with self-commutation semiconductors. It can supply a lagging and M Apower 0 8 1 factor 4 _ 0 load.

0 0 _ASVSI U Mcanleading power both the induction motors and

the synchronous motors.

At present, the VSI systems are available with different topologies (2, 3, 4, 5, etc levels) and different electronic power components (GCT, IGBT, and others).

They can feed medium and large voltage electric motors for power

“

Advanced electric motors and modern compressors in the clean-gas service theoretically do not need the routine maintenance

Harmonic filter required

For comparing the Load Commutated Inverters (LCI) vs. the Voltage Source Inverters (VSI), the following factors should be considered: • The LCIs have been used for more than 30 years (since the early 80s) ratings up to around 50 MW (higher for high-power synchronous mopower levels are under study). A welltors. On the other hand, the VSIs known VSI arrangement is a 12-pulse are more recent and they have VSI with 2 network serial bridges been used (mainly up to 30 MW, 1associated 2 0 1 4with - 0 a7 3-level - 1 0 T 0 9 (Pulse : 3 7 : 0 8 + 1 0some : 0 0isolated cases above 30 PWM with Width Modulation) motor inverter.

MW) for around 15 years.

• The LCI technology generates torque pulsations. A harmonic filter is generally required. Because of the speed excursion of the variable speed drive application, it is mandatory to implement a comprehensive torsional study (the torque analysis) of the complete train.

• Because of multiple pulse rectifier configurations, The VSI net work diode bridges reduce the harmonic current level emission. Depending on the network short circuit

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Manufacturers’ Monthly AUGUST 2014 35

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Motors & DRIVES level, using a 12, 18 or 24 pulse rectifier topology can result in the elimination of harmonic filter(s) in practice.

The induction motor (using VSI technology) provides the robustness and the simplicity. There is a very low harmonic content on the motor torque (using a modern fast switching device), an appropriate PWM (Pulse Width Modulation) and a sinusoidal output filter. There is a constant “Power Factor” (PF) on the network side >0.95 with no need for an additional power factor compensation system.

There is a very low harmonic content, particularly when using 24-pulse arrangement on the network side. There is also a smaller footprint, mainly due to the absence of the harmonic filter. Typically the VSI solution requires only 70 percent of the footprint compared to a LCI option with the same rating. The VSI solution also offers the lowest cost. An induction motor is cheaper compared to a synchronous motor for the same application.

There are few references in the operation of induction motors with powers higher than 30 MW. There are few references in operation of PWMVSI technology with power level more than 30 MW as well.

are usually such that a subsequent field balancing would not be required (whereas it is often possible).

For large high-speed electric motors, the usual balancing methods based on rigid body balancing theories are not sufficient to create an adequate balancing condition for Control issues heavy elastic rotors (with relatively For large electric motors, the flexible wide bearing spans). rotor concept is generally used. In A low speed rotor rotates around other words, the rotor runs superits local geometric centre over the critical (the first critical speed lies length of the shaft. When passing below the operating speed range). the first critical speed, the local The rotor should be dynamically balanced.

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condition of the electric motor to adjust possible unbalances.

Thermal unbalance

mass-centre, which means, the local unbalance in an elastic rotor varies with speed. Therefore, modal sets of unbalance weights should be used to balance each mode individually.

Otherwise, only the vibration amplitudes at the location of the shaft probes are minimised but not the vibration level at other locations over the shaft length. As a minimum, the “n+2” balancing planes (n=number of modes to balance) are necessary to balance an elastic rotor.

The theoretical rotordynamics 1study + 1 1and : 0the 0 practical vibration measurement are extremely important for the reliability of large electric motors.

These combined calculations and practical vibration measurements require a continuous update of rotordynamics models with measured data to get an adequate forecast for the vibration behaviour of a large electric motor. In practice, it is useful to have more than the theoretical “n+2” balancing planes.

Considerations should be given to: 1. The “internal” balancing planes over the length of the rotor body for balancing of individual modes.

2. The “trim-balancing” planes which are accessible also in the assembled

A special requirement for electrical motors is the handling of thermal unbalances. Because of the inevitable use of various materials with very different thermal expansion coefficients, combined with a non-uniform temperature distribution under a load condition, special care should be taken to achieve a symmetrical mechanical and thermally insensitive design.

Small asymmetries can cause unacceptable load dependent unbalance conditions. Also, high power-levels can lead to more extreme temperature gradients and can thereby cause thermal unbalance problems.

Dynamic studies and performance tests of relatively high-speed large electric motors usually show high vibrations. Particularly high vibrations at bearings are reported (whether the bearing housing or the bearing locations of the shaft).

Even for some very large electric motors, vibration velocities greater than 6 mm/s (more than 3 times of “1.8 mm/s”, the allowable limit by some electric motor codes) are measured. To clarify the source of these high vibrations, an accurate dynamic

“

A special requirement for electrical motors is the handling of thermal unbalances modal analysis should be employed.

Based on experience in high-speed electric motors in range of 20 MW 50 MW, even with an accurate impact test and a mode shape evaluation, the natural mode shapes of the motor structure/frame could not be properly identified.

It is usually more difficult for above 50 MW electric motors because of their design and construction. The impact test usually indicates a lot of peaks caused by local enclosure sheet vibrations. Often relevant modes cannot be clearly extracted. manmonthly.com.au

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The accurate FE (finite element) modelling with the forced vibration is the best method to properly clarify sources of these high vibrations.

Usually high vibrations are caused by some kind of resonance with one of natural frequencies of the main motor structural, frame, supports, or similar.

Often the electric motor operation excites a local mode at a component or assembly within a complex motor system such as the bearing housing/ shield, the metal sheet fabricated casing, structures, supports, and others.

These modes are usually underestimated during design calculations because of a relatively low modal mass or due to an insufficient modelling of details of electric motor components. All details including the electric motor frame, the bearing, the bearing housing, supports, structures, and others should be modelled accurately.

Dynamic displacements Regarding the bearing housing M A 0 stiffening 5 1 4 _ 0 of 0 the 0 _ bearing PI E vibration, shield/housing and improved

manmonthly.com.au

The practical notes and lessons learned for recent large electric motors are: 1. Rotordynamics models/simulations should be extended accurately to non-rotating parts of both frame and foundation structures (the rotor and bearing system on springs is not sufficient).

2. Often shifting all natural frequencies outside the operating speed ranges could not be practical. The use of a special bearing design to achieve a high modal damping could be considered as an acceptable solution (particularly when shifting of frequencies from a resonance zone is not possible).

3. For some high-order excitation modes, even for the 2Ă&#x2014;-excitation forced vibration (or higher-order harmonics) calculations should the vibration below standard limits, be performed to identify critical the achieved vibration level should be mode shapes of the system. The in any case below harmful fatigue levtesting may not be effective to els (usually the endurance limit should map the high-order harmonic be considered due to high frequencies frequencies and modes. A modal involved). In this case, the vibration 1and2noise 0 1 would 4 - 0 be 4 -relatively 0 3 T 1 high 0 : 0but 8 : 5 4 + 1 1 : 0with 0 the impact test analysis without knowledge of the critical a failure will not be expected. supports (of the bearing housing) can usually reduce the vibration level significantly (even to less than 10 percent of initial high vibration values). Forced dynamic displacements without a resonance usually remain below the code limit.

For large and high-speed electric motors, if it is not possible to reduce

â&#x20AC;&#x153;

An induction motor is cheaper compared to a synchronous motor for the same application

mode shapes gives no clear indication for critical structural modes, which may be excited by a misalignment, electromagnetic forces or other excitation mechanisms to inadmissible vibration levels.

4. Some excitations such as electromagnetic forces acting on the stator often cannot be prevented from affecting the machine and the bearings just by stiffening the electric motor frame. These dynamic deflections/excitations sometimes should be decoupled from the machine frame to stabilise the electric motor vibration.

[Amin Almasi is a rotating machine consultant in Australia. He specialises in rotating machines including centrifugal, screw and reciprocating compressors, gas turbines, steam turbines, engines, pumps, condition monitoring and reliability.] amin.almasi@ymail.com

Manufacturersâ&#x20AC;&#x2122; Monthly AUGUST 2014 37

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Packaging Packaging in an online world In these times of social media and internet based retail businesses, packaging has changed.

Flexibility is key and fixed high volumes are being replaced by small volume runs. Karen Wardell reports.

The packaging client base is becoming more and more diverse.

I

n the past five years the manufacturing and packaging industry landscape has changed significantly with respect to fast moving consumer goods.

The union between popular culture and internet technology, specifically online retail, blogging and social media, has had big implications for branding and marketing initiatives and has presented a huge businesses opportunity. nathan Wardell, Managing Director of packaging equipment hire company Packserv, sheds some light on the relevance of these for SME manufacturers and packers.

“Australian packaging businesses are certainly utilising the marriage of technology and social media to propel business growth. The focus has shifted away from traditional reporting factors such as global social and economic factors, particularly with respect to costs associated with offshore manufacturing and packing,” explained Wardell.

Wardell is often described by his customers as the ‘go to man’ when it comes to short or long term hire packaging machinery. He explained that he is always surprised at how many manufacturers and packers engineer new strategies that are having a positive impact on their business growth.

“In the packaging industry I have found that my clients who have experienced the most positive growth are those that are very flexible,” 38 AUGUST 2014 Manufacturers’ Monthly

Wardell said.

Wardell explains that in the past fifteen years - since the rise of the internet and social media - he has noticed a clear shift in the way manufacturers approach packaging.

Packserv’s clients are finding new opportunities and have evolved in two key areas, contract manufacturing and internet retail.

Whereas in the past they were used to fixed high volumes, many well-established, traditional contract manufacturers and packers have become flexible and started to accept small volume runs.

Manufacturers that produce and package their own brand are now offering contract packaging services for external businesses. This has allowed them to not only continue to produce their own product but to also maximise their output and revenue by offering smaller volume runs to other labels.

Over the past eighteen months, Wardell has seen many of these contract packing outfits spring up. As a consequence, these unassuming contract packers are in high demand and are hiring packaging equipment from Wardell to cope with the extra work.

These manufacturers are also on a steep learning curve. Production staff are discovering that existing equipment and packaging processes may not be suitable for all incoming work.

“Many small to medium manufacturers have been quick to see and act on this opportunity. They do need to have the versatility to trouble-shoot and solve packaging issues quickly to be successful with this transition,” Wardell said.

Contract packers who offer flexibility in line with customer needs are having a positive impact on niche businesses which can introduce small volume to market and not lose the ability to develop the product at a risk-free pace.

Brand owners are taking on the manufacturing and packing of their own products. They are opting to do the manual work themselves and hiring relatively slow speed, small, bench-top machines.

These businesses are not only concerned with tight cost and quality control processes but are also focused on social media and ecommerce strategies to build their brand and sell product.

Wardell pointed out that his client

base is becoming more and more diverse.

“You would be surprised at which businesses have adopted changes. Established businesses that are household names are definitely moving with the times and using our services as are many new businesses that are quick to get established in such a short period of time,” he said.

Many of Wardell’s new clients are solely internet based retail businesses. He deals with many clients that have an idea, turn it into a product and sell them online.

“They hire in the equipment to package their product to keep the overheads down and their sales are global,” he explained.

He cited two manufacturers who recently built businesses in Sydney and then adapted their websites from essentially marketing tools to interactive online stores in order to gain a solid global audience.

Their US market grew so fast in terms of internet sales that they had to open a US distribution centre.

Packserv 1300 377 512 www.packserv.com.au manmonthly.com.au

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Packaging Delivering the full package Changes in consumer demand don’t only affect products, they also affect how they are packaged. Smaller production runs and changing trends call for more flexibility in packaging equipment. Sarah Falson reports.

W

hether you are a manufacturer or producer of food, pharmaceuticals or another type of consumable, chances are your product needs packaging to keep it in optimum condition from the times it leaves the warehouse to the time the consumer takes it home.

Packaging is used for a number of reasons including to keep a product safe or sterile, to control portion size, to display ingredients and instructions, and to ensure it stacks easily and therefore makes optimum use of pallet, warehouse and retail shelf space.

With the sheer size of Australia’s packaged goods industries and the constantly-changing consumer demands for new and different types of products, manufacturers and producers have their work cut out for them. they expect a lot from their packaging machinery, most importantly flexibility, the ability to control quality, reducing lost time, efficiency and productivity.

Quality control ifm efector is a specialist in the supply of sensors, networking and control systems for use by a number of manufacturing and production sectors. According to the company’s managing director, Dave Delany, the issue of quality control is particularly prevalent as Australian manufacturers increasingly turn to smaller production runs.

“One machine that can package multiple products is a necessity, and set-up and quality control are both issues in these circumstances,” he told Manufacturers’ Monthly.

“For example: when a product’s physical size changes, it’s easier for damage to occur or the product to be missed, which results in an unhappy customer.”

For Delany, industrial imaging – in particular 3D sensors – are the latest technology providing a leap in the area 40 AUGUST 2014 Manufacturers’ Monthly

Flexible machines that can package multiple products are becoming more common, however whenever the size of a product changes there is an increased risk of error.

(Image courtesy of ifm efector.) of quality control, therefore helping small- to medium-sized businesses in particular become more flexible and more efficient with less material waste.

“Currently there are very basic sensors that detect a product, however these have a number of limitations and therefore errors still occur. the next option available is very expensive camera systems which are quite involved to set-up and require expertise to maintain,” Delany explained.

“We believe a game-changer in this area is the ifm 3D time of flight laser sensor. It uses thousands of 1mm laser beams to look at the product and produce a 3D image. the game-changing part is the very cost-effective price of $1,500, plus it doesn’t require any maintenance and is child’s play to set up. this

solves the problem of quality control, as it doesn’t miss products and enables fast set-up of different product sizes and shapes.”

Changing packaging In Australian Packaging and Processing Machinery Association (APPMA) director, Burt Beaumont’s experience, new trends in product packaging mean the equipment manufacturers use to package their products needs to offer – above all – speed and efficiency.

“One of the big issues Australian manufacturers that use packaging equipment are facing is shelfready packaging, and therefore the increased speed required of downstream machines, including case packers and palletisers,” Beaumont

Matthews Mperia L-Series coders deliver hi-resolution print quality through optimised drop control, high-speed printing abilities and a range of industrial inks to suit almost any substrate. (Image courtesy of Matthews Australasia.) told Manufacturers’ Monthly.

“We find that for established businesses, Oh&S and line efficiency are manmonthly.com.au

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the main drivers that cause them to look at automation.

“We are also seeing an increase in the types of packing material used for primary packaging, which in turn causes machinery manufacturers to look at alternate technology to accommodate these newer forms of packaging – one of those being pouches in their many forms.”

According to Beaumont, beyond speed and the capability to handle a large range of sizes and pack variants, packaging equipment customers are also looking for service support, both local and remote, including built-in features like cameras and modems. “ease of size changeover is also rated highly,” he said.

Labelling requirements the team at product coding, labelling and traceability solutions specialist, Matthews Australasia, is noticing an increased uptake of packaging equipment in the fresh produce sector, with some items which were once sold mainly loosely now being packaged.

“One of the difficulties for this sector is that many operators are buying equipment for the first time, so often they don’t know what they truly need, but they need a solution quickly. that tight time frame, without clarity on exactly what equipment, can be a challenge, because it can lead to shortterm decisions being made that don’t necessarily benefit them in the long run,” Matthews Australasia general manager of operations, Mark Dingley, told Manufacturers’ Monthly.

“For instance, do they want to code directly onto film, which they can do with thermal transfer overprinting, or go with labels? And will those labels be pre-printed and then applied with in-line label applicator technology? Or do they need thermal direct/thermal transfer labels, placed on produce via label printer applicators? Do they need a weigh-price labelling system, to weigh, then label produce with information including the price? Or a weigh-labelling system, for weightdependently pricing produce?”

Dingley advises addressing the processes and outcomes required, before looking at what technologies will meet those criteria.

“Our aim is to always go through a manmonthly.com.au

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company’s business needs with them, and encourage them to look not only at their customers’ immediate requirements, but also to address longer-term needs too. Major supermarkets and distributors require suppliers to follow their specific standards in labelling, coding and quality rules for supply chain efficiencies – so sure, they need to provide produce with the labelling, coding and packaging that their customers demand – but we look at which

“

the equipment manufacturers use to package their products needs to offer speed and efficiency... technologies will best suit their business and meet customer demands.”

Matthews is launching a new product this month, the Mperia L-Series, which uses high-resolution thermal inkjet coding technology and a patented Lexmark delivery system to deliver print-quality labels at high speed, on nearly any substrate.

“Depending on the Mperia controller chosen, the system can grow with a manufacturer’s coding requirements,” explained Dingley.

“Because of its ability to add additional features as they’re needed, the manufacturer buys the core system once; they adjust the options to meet their current needs, knowing they can upgrade to cater for future needs, as they come about. For example, their immediate need might be a 12mm-high font, but six months down the track they might need 20mm.”

APPMA 1300 787 122 appma.com.au ifm efector 1300 554 584 www.ifm.com/au Matthews Australasia 1300 405 347 www.matthews.com.au Manufacturers’ Monthly AUGUST 2014 41

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Contracts& TENDERS Getting through the financial hoop Companies looking to win contracts and tenders overseas can find financial assistance even harder to secure than it is for local work. But, as Matt McDonald writes, there is help available.

I

t takes a lot of work to win contracts and tenders. In fact, to do so for the first time can be a daunting prospect for your average up-andcoming SME manufacturer.

Developing an understanding of the market; finding what contracts are available; choosing the one that fits your business’s expertise and aptitude; setting out a winning application; and pricing are all critical parts of the process.

And securing contracts and tenders isn’t only about satisfying the buyer that you are up to the job and that you can offer value for money. It also involves satisfying your bank that you are a good financial risk. to put it bluntly, failure to win over your bank is a game changer.

If the contract you are chasing happens to be overseas, convincing your bank to support your business can be that much harder.

In deciding whether or not to support your overseas tender they have to consider things like the nature or term of the investment and even the political climate of the country in which the country is being done. Military coups have a habit of disrupting economic activity.

But the situation isn’t hopeless. the Export Finance & Insurance Corporation (Efic) can offer financial assistance to companies doing business overseas.

“We’re Australia’s credit export agency and what that means is we’re all about helping Australian businesses win, grow and succeed internationally,” Efic Executive Director, SME, Andrew Watson told Manufacturers’ Monthly.

In collaboration with banks, Efic provides companies with tailored financial solutions, including working capital and bonds.

“We have for example a fantastic Melbourne company called Camatic which specialises in stadium seating and it has nearly three quarters market share of stadium seating in the NFL in the US. And when they bid for contracts like the San Francisco 49ers stadium, they need to put up performance bonds,” Watson said.

“And the Australian bank can be quite challenged in terms of providing that sort of financial assistance...that’s when we stepped in and worked with Camatic and their bank and provided bonding support that enable them to win that contract overseas.”

So, at what stage in the tender process does Efic offer help? Before the tender is won or after?

“It can be both,” Watson explained. “We’ve 42 AUGUST 2014 Manufacturers’ Monthly

Camatic, an Efic client, has nearly three quarters market share of stadium seating for the NFL in the US. worked with another manufacturer also in the US that was bidding for a defence related contract and we were able to work with them to provide a letter of support and now they’ve won that contract and now they’re seeking bonding support.”

“A key risk we take a lot of the time is performance risk - that Australian business’s ability to successfully perform the contract they’ve entered into with the overseas party.”

However, while Efic has more scope to help than banks, it would be wrong for manufacturers to think that it is an easy touch. they do knock back request for financial assistance.

“We price for risk. We assess the risk. And at times we make an assessment that the life stage a company is at requires equity versus debt and our mandate is in the debt component versus the equity component,” Watson said.

And the knock-back can even come after the company has satisfied all tender criteria and won the work.

“Clearly we expect our money back but we take the view that that company with this backing should be successful in winning that contract,” explained Watson.

Watson said the numbers of companies looking overseas for work is on the rise.

“What we’re seeing increasingly is Australian

SMEs looking to be closer to their customers so they are seeking ideas and options regarding overseas expansion,” said Watson. the assistance Efic offers is purely financial.

However, as Watson pointed out, practical advice and assistance is available elsewhere.

“If you want to invest in an overseas market you need to make sure you speak to the likes of Austrade, your lawyer, your accountant,” he said.

“Businesses that expand overseas and don’t get the right advice are more than twice as likely to fail as those that get advice.”

“Austrade are really good at helping companies gain information and advice and research on access to markets, what is happening in those local markets and understanding what you need to look out for and also possible introductions with the right players in those local markets.”

[Matt McDonald, a Manufacturers’ Monthly journalist, writes on a broad range of topics. His special interests include Safety and Industrial Relations. Contact him at google. com/+MattMcDonald28] Efic 1800 093 724 www.efic.gov.au manmonthly.com.au

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REGIONALMANUFACTURING Medicine to secure Australia’s future Medical technology can play a key role as Australia strives to transition into an advanced manufacturing economy but there are hurdles.

Hartley Henderson reports.

A

S THE trend continues of Australian manufacturing shifting away from mass production, there is an increasing focus on developing the potential of advanced innovative growth sectors such as medical technology.

This is a highly innovative sector with the capacity to create advanced manufacturing jobs which in many instances are similar to those in the declining automotive industry, such as design, skilled engineering, miniaturisation, computerisation, and materials science.

According to the Medical Technology Association of Australia (MTAA), the medical technology sector in the 2011-12 financial year consisted of over 550 companies and had an estimated turnover of just over $10 billion, which meant that it was larger than the wine industry and on par with the automotive industry.

MTAA’s CEO, Susi Tegen, believes that the medical technology industry in Australia has all the prerequisites that are needed to expand an already successful, globally relevant, world

leading competitive industry.

“However, while the environment is right for expansion of the industry, there is a need for forward looking policy and a cohesive national plan for the industry. There is significant room to improve the support systems such as the development of collaborative structures including innovation hubs or clusters,” she told PACE. “Red tape should be cut and systems streamlined, including the slow Therapeutic Goods Administration (TGA) processes in Australia, which restrict the competitiveness of this industry. Ensuring safe technology for patients is important, but TGA red tape is often prohibitive for Australian companies.

“Red tape in other areas is also having a negative impact on businesses including in relation to employment, innovation, and in import and export requirements.”

Integrated technologies Ellex Medical Lasers manufactures leading-edge integrated technologies including ophthalmic laser and

Sirtex Medical is a Sydney-based manufacturer of SIR-Spheres which are used in the targeted treatment of liver cancer.

44 AUGUST 2014 Manufacturers’ Monthly

Adelaide-based Signostics manufactures the smallest hand-held diagnostic ultrasound system on the market. imaging products for use in the fight against blindness that can be caused by conditions such as macular degeneration and glaucoma.

The company, which employs 140 people in Adelaide and 210 worldwide, has evolved from manufacturing primarily OEM products, to direct marketing of its own branded products through subsidiaries in the US, Japan, Australia, Germany and France.

CEO, Tom Spurling, says Ellex has a strong emphasis on the protection of intellectual property and research into new and better treatments for ophthalmic disease.

“Current research includes Retinal Rejuvenation Therapy, we call it 2RT, which is a project focussed on new treatments for diabetic retinopathy and age-related macular degeneration. As populations age, we see a rapidly developing market for our products, not just in Australia, but around the world,” Spurling said.

“In 2013 we launched our worldleading Selective Laser Trabeculopasty technology for the treatment of glaucoma in the US, and Rapide was also launched, which is a fast pattern scanning photocoagulator that enables up to 2,000 laser shots to be delivered during treatment in less than seven minutes.

“This year we have expanded our glaucoma program through acquisition of a canaloplasty business in the US, thus cementing the company’s

position as a global leader in the nonpharma treatment of early to moderate glaucoma treatment intervention.”

However, Spurling says action is required to streamline the evaluation of new developments and the long and tortuous road to market.

“There are big opportunities for medical technology manufacturing and Australia is a trusted brand around the world. But more needs to be done to reduce the complexity of the research grants and commercialisation processes.”

Global reach Sirtex Medical is a Sydney-based manufacturer and marketer of SIRSpheres microspheres, which are supplied globally for use in the targeted treatment of liver cancer.

The company has manufacturing facilities in the US and Singapore and a new facility is due to open in Germany in 2015. According to CEO, Gilman Wong, more than 40,000 doses of SIR-Spheres microspheres have been supplied as a last line treatment for inoperable liver cancer patients in more than 600 medical centres and 30 countries.

“Globally there is a large unmet medical need for better treatments because mortality for liver cancer patients remains higher than other cancers,” he said.

“A key issue that the company is addressing is the need to demonstrate, educate and generate wider manmonthly.com.au

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MTAA’s CEO, Susi Tegen. awareness among the global community. This is a challenge faced by all medical technology companies with a product that promises to change established practices.

“To this end, Sirtex is building the case for wider use of its main product by investing $60 million over five years in five major post-marketing clinical studies involving leading international medical institutions, key medical opinion leaders, and more than 2,000 patients.

“This investment is designed to demonstrate the efficacy of our SIRSpheres microspheres as a first-line treatment for primary and secondary liver cancer and grow our markets.”

Wong says Sirtex is a global business with a very bright future with markets and sales that continue to expand at a steady pace.

“We are recognised as an emerging international leader in cancer MA 0 8 1 3 _ 0 0 0 _ K E R treatment. A large part of our future

Sirtex Medical’s CEO, Gilman Wong.

Ellex Medical Lasers’ CEO Tom Spurling.

success is based on investing in a highly skilled workforce capable of taking our business to the next level of growth on a global scale,” he added.

recognised that medical devices need to be safe and effective, time to market for new products is hard to manage due to the uncertainty associated with regulatory approvals, which can vary significantly around the world,” Regulatory compliance he explained.

Based in Adelaide, Signostics de“In Australia, the key to employvelops, manufactures and markets ment creation is the development of a hand-held ultrasound diagnostic a cooperative ecosystem where local system, which the company says is the smallest, lightest and most afford- manufacturers have easier access to medical device users for clinical triable hand-held ultrasound system on als and product testing, with a view the market. to early adoption of products.

Signostics quality and regulatory “This would enable Australian manager, Stewart Bartlett, says the companies to reduce time to market company sees significant opportuniand achieve initial market validation ties for expansion internationally in Australia before expanding into into new markets and there are plans overseas markets. to continue to develop the product so “The TGA needs to look at its role that it appeals to a broader range of in assisting the competitiveness of clinical segments, including superfiAustralian industry because currently cial imaging.

TGA approval times can be lengthy, However, he said a key issue which is an impediment to the Ausconfronting the industry relates to 1 2 0 1 3 - 0 7 - 0 9 T1 0 : 3 3 : 3 2 + 1 0 : 0 0 tralian medical technology industry. regulatory compliance. “Whilst it is

Equivalent approval times in Europe for European manufacturers are much shorter, and some US approvals can be achieved in 30 days.

“The potential for significant employment growth in medical technology is there if all of the stakeholders can work more constructively together.”

[Hartley Henderson has been a regular contributing writer to Manufacturers’ Monthly for the past eight years, covering industry developments in Victoria and South Australia. Prior to that, he held senior positions in government, semi-government and business enterprises and was National Program Director with the Productivity Promotion Council of Australia].

Sirtex 02 9964 8400 www.sirtex.com.au Ellex Medical 08 8104 5200 www.ellex.com Signostics 08 7424 0600 www.signosticsmedical.com Medical Technology Association of Australia 02 9900 0650 www.mtaa.org.au

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Manufacturers’ Monthly AUGUST 2014 45

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Materials HANDLING Palletiser bulk bag filler

Total self weight of the unit is only 150 kg.

FLEXICON’S new system integrates a Swing-Down Bulk Bag Filler with a Flexicon Pallet Dispenser and Powered Chain Conveyor, allowing safe, high-capacity filling of bulk bags of all popular sizes, including bags with wide-diameter spouts for passage of irregular materials.

When a filling cycle is initiated by push button or contact closure, pallet dispenser forks lower the stack of pallets onto the chain conveyor, withdraw from the bottom pallet, and raise the remaining pallets, allowing the conveyor equipped with photoelectric eyes to move the dispensed pallet into position below the filling station.

The bag connection frame of the Swing-Down fill head lowers and then pivots to a vertical position, allowing an operator at floor level to safely and quickly attach bag straps to automated latches, slide the bag spout over a wide-diameter inflatable spout seal, and press a spout seal inflation button.

The system is offered with the company’s own steel-tube flexible screw conveyor integrated with the user’s upstream process equipment or other material source.

Flexicon Corporation (Australia) 1300 353 942 www.flexicon.com.au

Pallet jack for improved safety LENCROW has just launched its latest pallet jack on the market. The EPT20-15EHJ is a pump to lift with power drive which offers a much safer alternative to hand pallet jacks.

The unit has a capacity of 1500 kg and is designed with 4.5 mm ribbed forks and made with a high strength frame to give many years of operation.

The unit offers increased safety with less operator strain than pushing or pulling pallets and with the automatic brake the unit will not roll away on slopes when the pallet is elevated. The unit has been fitted with an anti skid drive wheel and auto reversing safety switch on handle.

Ross Grassick, managing director, Lencrow, said, “We have looked for a low cost unit that will improve the safety in the

workplace. This unit was not designed to replace heavy duty power pallet jacks that have much longer duty cycles.”

The unit works in the same area as a standard pallet jack and the total self weight of the units is only 150 kg. This makes this unit ideal for use in shops and bulky goods outlets. The price for these units are a fraction of a standard power pallet jack.

The unit is self contained with built in charger that can be charged at any power point. As with all of the EP green range of equipment they are pollution free and work with a reduced carbon foot print.

Lencrow Materials Handling 1300 536 276 www.lencrowgroup.com.au

Allows safe, high capacity filling of difficult materials.

6 - 7 tonne series forks MITSUBISHI has launched a new range of 6.0 and 7.0 tonne counter balance diesel forklifts.

The highlight of the Mitsubishi Forklift Trucks recent 2014 Dealer Management Conference conference in Singapore was the launch of 3 new Mitsubishi product ranges; a new 10 to 16 tonne range of sophisticated forklifts with an extensive option list, a new sit-on reach truck that offers lift height of up to 13 metres and most eagerly a new 6 & 7 tonne range with reduced turning radius and higher retained capacity.

The FD60-70NM series consists of two models that are powered by the S6S diesel 46 AUGUST 2014 Manufacturers’ Monthly

engine. These trucks incorporate a smooth hydraulic steering system. In addition, a suspension seat and full floating power train provide comfort for the operator.

The range is an upgrade to the previous Mitsubishi 6 tonne - 7 tonne series with new improvements in capacity and turning radius, containing features that are particularly focused on operator safety.

Reduced turning radius and higher retained capacity.

MLA Holdings 131 652 www.mlaholdings.com.au manmonthly.com.au

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WomenIN INDUSTRY AWARDS WOMEN IN INDUSTRY AWARDS: WINNERS

OVER 150 people turned out for the inaugural 2014 Women in Industry Awards where ladies from across the mining, manufacturing and engineering sectors were rewarded and recognised.

Held at The Establishment in Sydney, the evening was kicked off by guest speaker Ruth Medd, executive chair of Women on Boards, who shared her three tips for success.

She said women looking to advance their careers needed to learn how to better selfpromote their talent, make focused and strategic plans and build a supportive network base.

ABC commentator Bernie Hobbs then took the reigns as MC for the night, and had the crowd in stiches with her good-natured ribbing and witty one liners.

The room was abuzz with excitement as a total of nine awards were handed out to very deserving recipients.

Commenting on the success of the night, business development manager at Manufacturing Skills Australia, Marilyn McMahon, said the event was the most “genuine” awards program she had attended.

“Tonight was very encouraging,” McMahon said. “The hosting was amazing, people are very keen to chat and very friendly, and the crowd is made up of a broad spectrum of people from across the industry.”

Manufacturers’ Monthly congratulates the winners of the 2014 Women in Industry Awards:

Brookfield Multiplex won the Employer of the Year Award. HR Manager Rachel Surgeon accepts the award from Scott Berkin of NLT Australia. Leading by example, the company’s executive team has increased its female representation from zero to 33 per cent over the last three years as part of its wider “Women@BM” program which aims to promote talent. It also has a number of programs in place to support women and ensure the company’s high retention rate is maintained. Most recently, one of these programs has centred around supporting mothers returning to work.

Winner of the Mentor of the Year Award, Natasha Cann (R) of NM Cann with Helen Wood of TMS Consulting. Cann was acknowledged for her delivery of a no-cost online mentoring service. Ten years ago Cann began actively working towards her goal of encouraging more women to flourish in the mining industry by developing a free mentoring service via Skype and face-to-face.

In 2013, Cann decided to formalise her work and created two confidential services: Mining Mums and Mining Mentors. Cann also speaks at industry events to promote the benefits that the mining industry has to offer women.

BDM of the Year

Jacky Magid: General Manager of Sales and Marketing – Charlie’s Cookies

Winner of the Excellence in Mining Award, Julie Shuttleworth of Fortescue Metals Group with Mark Irvine from MMD. During her career Julie has been at the forefront globally on metallurgical issues such as cyanide recovery using the sulphidisation-acidification-recyclethickening process at the Telfer Mine; operating paste tailings facilities at Bulyanhulu Mine when this was relatively new technology; and surface water collection, storage and water conservation at Buzwagi Mine. She also presented on these topics at global conferences.

Employer of the Year – Sponsored by NLT Australia

Brookfield Multiplex Excellence in Engineering – Sponsored by Direct Automation

Naomi Mathers: Industry Liaison Engineer – Australian National University Excellence in Manufacturing

Lynn Johnson: Manager SME Engagement Program – Industry Capability Network, Victoria.

Excellence in Mining – Sponsored by MMD Australia

Winne Manuf Johnso Ruth M on Boa leaders $446 m offshor contra

by Vic area in has he is in lo procur the inc five co

For he in the and fo way to it, Nat awarde Indust Cann s calls or asking they h Her tw by givi the mi for ope urges w

Julie Shuttleworth: General Manager, Cloudbreak Mine – Fortescue Metals Group Industry Advocacy

Naomi Mathers: Industry Liaison Engineer – Australian National University Mentor of the Year

Natasha Cann: Director – NM Cann Rising Star Award – Sponsored by QMI Solutions

Cassandra White: CEO – Miners’ Promise Social Leader Award

Natasha Cann: Director – NM Cann

www.pacetoday.com.au 2014 4838AUGUST 2014 Manufacturers’JULY Monthly

Winner of the Rising Star Award, Cassandra White of Miner’s Promise with QMI Solutions CEO Gary Christian. White was recognised for her work in helping to build a support organisation for miners and their families through the not-for-profit organisation Miners’ Promise. The group works to support families in whatever it is they need in times of grief.

This includes emotional, financial and/or pastoral support. This is achieved by travelling to the family’s location; assessing their immediate needs and affecting strategies aimed to support and comfort.

Winne Mathe Davies for the was m in the space i success Precin has ma betwee growth manmonthly.com.au

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Sponsored by

Winner of the Excellence in Manufacturing Award, Lynn Johnson (R) of ICN with Ruth Medd from Women on Boards. Under the leadership of Lynn Johnson $446 million worth of offshore and national supply contracts have been secured

by Victorian SMEs. Another area in which Johnson has helped manufacturers is in local government procurement activities. Since the inception of the SME engagement program, ICN has started working with five councils, including Kingston, Cardinia, Casey, Geelong and Wyndham.

For her passion to see women in the mining industry thrive, and for going out of her way to do something about it, Natasha Cann has been awarded to 2014 Women in Industry Social Leader Award.

Cann said she often receives calls or emails from women asking for advice but feeling they have no one to turn to.

Her two programs foster talent by giving women working in the mining sector an avenue for open and honest communication. A major advocate of social media, Cann urges women to jump online to engage with each other and share their stories.

Winner of the BDM of the Year award, Jacky Magid (R) of Charlie’s Cookies with Australian Mining’s Vicky Validakis. Magid was recognised for her efforts in spearheading a campaign which saw Melbourne-based food manufacturer Charlie’s Cookies go from a small local cookie supplier to a national business turning over almost $5 million per annum. A driving force behind the development of an entirely new product range – the Mini Melting Moments – Magid had a role to play at every step of the way from packaging, marketing, sales and distribution.

For her dedicated work in advocating Australia’s space industry to the world, Naomi Mathers has won the 2014 Women in Industry, Industry Advocacy Award. Mathers has distinguished herself by working across the differing domains within the space industry including government, defence, research and academia, and has demonstrated the ability to understand the needs of each domain and facilitate projects that benefit all partners and grow the sector as whole.

Pacific Merchandising

Winner of the Excellence in Engineering Award, Naomi Mathers (R) of Australian National University with Katie Davies from Direct Automation. Mathers was an advocate for the space industry in Australia at a time when there was minimal activity, and very little government interest, in the sector. Aiming to create a sustainable Australian space industry, Mathers also led the preparation of the successful bid for a Space and Spatial Industry Innovation Precinct. Mathers believes Australia’s space industry has massive potential and her job is to connect the dots between researchers, industry and policy makers to ensure growth can flourish in the sector. manmonthly.com.au

Pacific Merchandising is a specialist Promotional Merchandising supplier to Mining, Oil & Gas, Construction and Transport Industries and Australian Trade Unions.

Operating since 1994, our reputation has been built around our wholly Australian custom designed and manufactured pewter belt buckles and custom-made products such as key rings, plaques, medals, commemorative badges, medallions, coasters, models and figurines.

Today our belt buckles are prized collectors pieces recognised globally and shipped internationally.

And we source across a wide range of products.

As a premier supplier to major companies and organisations we have close relationships with premium global brands, such as Leatherman multi-tools, LED Lenser torches, Seiko watches, Maglite and Victorinox. This enables us to offer you best value access to quality gifts backed by leading brands.

Busy industry project managers look to us for a painless and easy solution to corporate giving.

They value the personal service and expert advice from an industry specialist. And the benefits in time saving and logistical headaches saved through dealing with a one-stop shop from sourcing ideas or products to art design, from decoration to manufacture, and attractive gift packaging to freight.

We help you celebrate your company achievements, its milestones and your people…hence our tagline, celebrating excellence!

Level 1, 117-131 Capel Street, North Melbourne. Vic 3051 t: 1300 88 77 95 e: sales@PacificMerchandising.com.au www.PacificMerchandising.com.au

JULY 2014 www.pacetoday.com.au 39

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What’sNew Synchronous lifting system EnERPAC, a high-pressure hydraulics specialist, displayed its latest workplace efficiency and safety technologies at this year’s Queensland Mining Exhibition in Mackay last month.

Enerpac - which operates in 22 countries with more than 1000 employees, displayed a range of products, including its new generation Enerpac EVO synchronous lifting systems used to lift entire structures, plant or machinery weighing thousands of tons.

Replaces manual control of hydraulic heavy lifting.

EVO is a new generation Enerpac synchronous lifting system that replaces manual control of hydraulic heavy lifting with PLC control of multiple cylinder lifts offers accuracy, safety and productivity benefits for precision lifting of heavy resources industry machinery.

The EVO system is the evolutionary result of Enerpac’s 25 years of experience in specialised hydraulic engineering and lifting technology using digitally controlled hydraulics to accurately and safely lift some of the largest and most challenging structures on earth, including mineral and oil and gas processing equipment.

The new EVO synchronous system offers eight standard hydraulic control modes and can control 4, 8 or 12 points with one hydraulic power unit (HPU). A master control unit is also available that offers daisy chain control of up to 16 EVO systems, giving a maximum of 192 lifting points.

Enerpac 02 9743 8988 www.enerpac.com.au

Tork helps daring Vili’s bakery stay hygiene-safe In an industry as highly regulated as food manufacturing, daring to be different is a bold step. So while Vili’s bakery makes courageous choices with the flavours of their baked goods, they play it safe when it comes to food handling and hygiene, choosing Tork products to help them stay compliant.

Tork Industrial Heavy-Duty Wiping Paper is one of the many Tork hygiene products Vili’s uses in the manufacturing plant in Adelaide. This strong wiping paper meets the legislative requirements for Food Contact materials, and has external certification performed by ISEGA, declaring the paper safe for wiping food contact surfaces.

Leanne Ambrose, Vili’s national Quality Manager, explained Vili’s use the Tork wiping paper for their performance but also for the colour. “We make a lot of pastry and use a lot of flour, so it’s important that our wipers and hand towel are not white but blue,” she said. “That way we can see if scraps (accidently) make it into the pastry.”

Vili’s operates a HACCP (Hazard Analysis Critical Control Point) system to minimise food safety hazards and as a supplier to major food chains they are also subject to regular monthly audits from the chains. So food handling and hygiene is taken very seriously.

Tork Industrial Heavy-Duty Wiping Paper is placed at stations all around the bakery and used extensively. “We place the Handy Box underneath a machine and staff grab them and use them all day to wipe and clean surfaces. They are strong and perform well,” said Ambrose.

Strategic positioning of hand-wash and dry facilities is also crucial for maintaining hygiene. Tork H1 dispensers with blue hand towel rolls are used in bathrooms, kitchens and at all the wash stations around the bakery.

“Every sink has a dispenser above it and the staff use the towels to dry hands on. It’s good they are robust as they are pretty rough on them,” said Ambrose.

Tork Professional Hygiene 1800 643 634 www.tork.com.au 50 AUGUST 2014 Manufacturers’ Monthly

Tork Industrial Heavy-Duty Wiping Paper helps Vili’s stay hygiene-safe.

manmonthly.com.au

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Brought to you by

Devices for industrial control & automation applications

All models feature -25°C to +75°C operation.

ICP Electronics Australia announces the release of a diverse range of ZigBee Products manufactured

by ICP DAS for industrial automation and control environments.

ZigBee is a specification based on the IEEE 802.15.4 standard for wireless personal area networks (WPANs).

It operates in the ISM radio bands, and it defines a general-purpose, inexpensive, self-organizing, mesh network for industrial control, embedded sensing, medical data collection, smoke and intruder warning, building automation and home automation.

There are three different types of devices in a ZigBee network:

High-rise storage shelving INDUSTRIAL occupational health and safety specialist Actisafe has expanded further into the area of bulk storage.

It has released its Australian made high-rise storage shelving for warehouses, components and parts processes, food manufacturers and other general industrial companies.

The ‘Defence Preferred Supplier’ added this technology to its growing list of stocks as a way of facilitating those companies in need of a certain level of customisation to their storage and shelving requirements.

In addition, with every square metre of floor space priced at a premium – particularly in metropolitan areas – a high-rise storage option is considered a strategic investment for most companies looking to lock into lease agreements.

Made of heavy-duty steel panels and framework, the high-rise storage shelving can be powder coated to a specific

ICP Electronics Australia 1300 402 822 www.icp-australia.com.au

The AC-DC converters have an operating temperature range of -40°C to 85°C.

Ultra-small PCB mount AC-DC converter The shelving is designed with reinforced edges. colour required by the end user.

Designed with reinforced edges, the customised technology is durable enough to withstand a certain degree of impact from items such as forklifts, palette tracks and other industrial materials handling equipment.

Actisafe 1300 852 397 www.actisafe.com.au

POWERBOx has released the very small Cosel PCB Mount AC-DC Converter models with 3W, 5W, 10W and 25W power ratings and three different output voltages of 5VDC, 12VDC and 24VDC. The new PBB7A series smoothly powers industrial applications at temperatures ranging from -40°C to 85°C. The Class II converter is EN60950-1, cUL. UL certified and meets EN55022 Lev B. It is intended to achieve high efficiency and low standby power at a greatly reduced size.

The AC-DC converters are ErP compliant and offer high efficiency (90% PBB7A-24G).

They provide design flexibility and hold-up time can be set by choosing capacitors.

Their small size is intended to enhance layout flexibility and they have an operating temperature range of -40°C to 85°C. Powerbox Australia 1300 301 093 www.powerbox.com.au

Measurement system for lab work BESTECh Australia introduces the new boreCONTROL LAB, a benchtop device that is designed for laboratory use.

According to the company, it is easy to set up and configure, providing high precision statements about the quality of bore holes or cavities in the diameter range from 4mm up to 16mm. The measurement system offers non-contact measurement using a small light spot, high resolution in radial and axial directions and a high sampling rate of up to 10khz.

The optical measurement principle is applicable on many materials. A granite table enables temperatureresistant and vibration-free measurements. manmonthly.com.au

Coordinator (Master), Full function device (Router, Repeater), Reduced Function Device (End Device).

The family of product includes Analog I/O, Temperature sensors, Digital I/O, Multifunction I/O, Zigbee Sniffers, Repeaters and Converters (RS232/485, Ethernet and USB to ZigBee).

All models feature -25°C to +75°C operation, ESD/ EFT protection, 10-30VDC wide range power supply, dual watchdog timer, Windows GUI Configuration Software, and are DIN Rail mountable.

The sensor consists of a fast exchangeable sensor lance with rotary drive and is moved via a high-precision traversing unit in the axial direction (z-direction).

Delivery includes two sensor lances for diameters 4 to 10mm, as well as from 10 to 16mm.

Measurement objects can be mounted using a chuck and precisely positioned with a manual x-/ytable. handling and evaluation take place with an industrial tablet PC (delivery includes PC and software).

The measurement system is also used for surface assessment and defect detection.

Bestech 1300 209 261 www.bestech.com.au Manufacturers’ Monthly AUGUST 2014 51

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Rotary screw compressors When companies are looking for a compressor to suit their specific applications, it’s often the case of over or under specifying to meet the need.

Making the jump from smaller capacity reciprocating compressors to the higher capacity rotary screw compressors requiring a separate receiver may be overkill on output and budget.

Southern cross compressors have catered for that gap with a new LGX series of compact, receiver mounted, rotary screw compressors from 5.5 to 15kW. designed to produce maximum output with reliability and low energy usage, these self-contained units provide the

benefits of the larger capacity Khe range in a high efficiency, low maintenance compressor.

The range offers capabilities from 0.78 m3/ min to 2.35 m3/min to suit a diverse range of applications.

Some built in features include a large, slow revving airend to deliver low noise and minimal vibration, integrated after-cooler and cooling fan, large cyclonic air intake filtration, large 500 litre receivers and an optional integrated dryer and air filter.

The compressors feature 500 litre receivers.

Southern Cross Compressors (Australia) 1300 372 056 www.southerncrossaircompressors.com.au

Redundancy Modules

The modules have reverse polarity protected inputs.

SuPPLier of din rail mount power supplies, Puls has released the new compact Mosfet redundancy modules. They are available from control Logic. redundancy modules are used for building n+1 and 1+1 redundant power supply systems where it is critical that a control circuit remains powered even if a power supply was to fail.

Some of the key features of these modules are low power losses and voltage drop due to Mosfet technology, short circuit output protection, reverse polarity protected inputs,

160% overload capability for 5 seconds and a plug connector on the output of the Yr40.245 model which means that the module can be hot swapped without the need to turn off power to the load.

The range includes modules which have 2 x 20A inputs and 1 x 40A output, 1 x 40A input and output as well as 2 x 40A inputs and 1 x 80A output. Voltages range from 12 to 56 Vdc depending on the model.

Control Logic 07 3623 1212 www.control-logic.com.au

Lightweight polymer The improved Oz Monyt Super Polymer is the latest plastic innovation by Oz Seals. it is claimed by the company to be more durable than acetal, filled nylons, filled polyesters and bronze.

The polymer covers properties of high abrasion resistance, load bearing capacity, lubrication properties and dimensional stability. it is an ideal bearing material for weir bands, backup rings, step seals, anti-extrusion rings and glide ring seals. At the same time, it is kind to shafts and barrels. under dirty and unlubricated conditions it remains The lightweight polymer is considered an ideal bush material for effective due to its permanent triple lubrication propermarine applications. ties, carrying a low friction co-efficient (0.18/0.22) and excellent bush temperature resistance of up to 120˚c.

This allows higher speeds to be used, thus improving performance.

When subjected to high pressures, the polymer retains its shape and does not swell when immersed in water. it’s considered an ideal bush material for marine applications, while is also suitable for the mining, earth-moving, aviation, industrial, commercial, automotive and construction industries.

Oz Seals 07 3290 1846 www.sealnet.com.au 52 AUGUST 2014 Manufacturers’ Monthly

Variable speed drive with embedded services for industrial applications Schneider electric has released the Altivar Process range of drives for process applications.

According to the company, it is the first variable speed drive on the market with embedded intelligent services.

Thanks to a convergence of iT and operational technologies, the drives deliver added value services that enable business and process optimisation through improved life-cycle asset management and optimised energy consumption.

Through advanced system and equipment condition monitoring, the drives are designed to ensure that applications are performing at optimum efficiency at all times.

They can detect efficiency drifts and monitor motor power with a high level of accuracy (< five per cent). This enables the automation system to immediately make adjustments, thereby minimising a negative impact on the bottom line. in contrast to conventional drives, they are also able to reduce downtime by another twenty per cent due to predictive, condition-based maintenance and an innovative user-interface with easy-tounderstand graphs.

Schneider Electric 1300 369 233 www.schneider-electric.com.au

manmonthly.com.au

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2014-07-07T10:14:11+10:00

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2014-07-22T08:06:42+10:00

The lastWORD The ball is in our court Large-scale manufacturing plants that employ thousands of people are things of the past.

But, according to Geoffrey Spinks, Australia can still choose to become a global supplier of high-tech products.

A

usTrALiA can forge an exciting future as a manufacturing nation in the 21st century by being prepared to embrace innovation and technology.

The highly-publicised demise of the automotive industry in Australia, the latest in a long line of traditional manufacturing industries that have fallen by the wayside, seems to suggest that we have a limited future as a manufacturing nation. However, nothing could be further from the truth – provided we act now.

The assumption that manufacturing is dying because we have seen traditional industries like clothing, footwear, white goods, furniture, electronics and now cars succumb to a combination of high labour costs, small domestic markets and a high Australian dollar, overlooks Australia’s track record for innovation, diversity, specialisation and human skills. it also ignores the fact that Australian manufacturing output has quadrupled since the 1950s.

Australia has the skills and capacity to be a global leader in highly specialised niche manufacturing, delivering high quality products and providing high quality jobs. We have done it before, and we can do it again.

Look at Cochlear, whose brilliant and life-changing implants for people suffering acute hearing loss account for 70 per cent of the global market.

Or Australia’s polymer bank note technology, which is another world leader.

The truth is that the face of Australian manufacturing is changing. it is no longer simply about production lines, low-cost labour and cheap, throwaway products. We can’t expect to develop new large-scale manufacturing plants that employ thousands of people. But we can aim to develop new businesses through researching innovative products and ways to make them. A vibrant innova-

54 AUGUST 2014 Manufacturers’ Monthly

Australia has the skills and capacity to be a global leader in highly specialised niche manufacturing. tion system can deliver new jobs and new industries and help rejuvenate regional economies.

For example, 3D printing technology is opening up all kinds of opportunities. it is hugely advantageous to

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machines to make them. Those countries that are able to best harness and focus their research capacity and convert ideas into industries will gain a huge advantage. Those countries that fail

Those countries that fail to act now will be swept aside by a virtual tsunami of technological innovation from nations with greater imagination and commitment to invest... develop in tandem the materials and the machines that produce them.

Here at university of Wollongong (uOW) we are already developing biomedical devices that replicate organs and other body parts, and we can also design and manufacture

to act now will be swept aside by a virtual tsunami of technological innovation from nations with greater imagination and commitment to invest.

The question is simple. Does Australia want to be a global supplier

or an importer of high tech, high value products? The answer must be that we want to be a supplier.

Manufacturing does matter. Making things goes to the heart of a nation’s psyche. And we can’t simply rely on being the world’s quarry.

At uOW our research efforts in next generation manufacturing span high strength alloys, better battery materials, bionic implants and nanomaterials. researchers are also developing innovative machinery like high productivity welding systems, 3D printers, metal forming systems and autonomous robots. We are also active in business management and iCT research that enable efficient business processes.

[The University of Wollongong’s Professor Geoffrey Spinks is an Australian Research Council Fellow based at the ARC Centre of Excellence for Electromaterials Science.] manmonthly.com.au

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2014-06-23T08:48:49+10:00

Are you in Contact with your Future?

New generation of energy efficient contactors for the new generation of factory … just the start of your journey to Industry 4.0 … all produced from Siemens Amberg, one of the most advanced factories in the world. www.siemens.com.au/futureofmanufacturing

It takes a world-class factory to produce world-class industrial controls. Siemens is in a unique situation in that we are one of Germany’s largest manufacturers and we are also manufacturing things designed to improve the efficiencies of others.

Siemens is redefining manufacturing with advanced automation technologies such as SIMOCODE pro V, the smart, compact and Internet-connected motor management system. This is just one of the offerings designed to get you on the journey to Industry 4.0.

At our award-winning factory in Amberg, not only do we produce the new generation of energy efficient contactors, but also advanced automation and control products including SIMOCODE pro, our intelligent motor management system.

Industry 4.0

Siemens Amberg provides a window into the future of Industry 4.0 where we can demonstrate the integration between the virtual product generation and its actual production. Products already communicate with production machines and IT systems control and optimise all processes.

Industry 4.0 is about helping your business become more nimble, adaptable and intelligent; from design to prototype to production and throughout the entire lifecycle – with rapid innovation cycles.

So industries can perform faster, better and produce more with fewer resources.

Scan QR Code to download a case study of the Siemens Amberg Factory.

Our technology can be found at the heart of manufacturing and industrial plants throughout Australia and around the world – helping produce everything from the finest food and beverage, critical pharmaceutical supplies, clean water, oil and gas, mineral ores and metals, through to just about anything you can think of to help make your factory as productive and efficient as possible.

SIMOCODE pro V You ask: How can faults in automated processes and costly plant downtimes be prevented? What is the best way to avoid faults in your system or detect pending errors at an early stage?

We answer: Smart motor management with SIMOCODE pro – a reliable partner since 1986 and now with the aid of an Internet browser you can access all diagnostic and service data relating to your motor feeders from anywhere via network connection and the web server. What’s more, it’s easily integrated into your automation solution using TIA Portal, an extremely user-friendly software providing one integrated engineering framework.

To find out how SIMOCODE pro can help your business switch on to the future, call 137 222 or email manufacturing.au@siemens.com

Answers for industry.

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2014-07-10T09:07:24+10:00

SHELL LUBRICANTS HELP EXTEND VEHICLE LIFE.

An oil that cleans. Shell rimula can help extend oil-drain intervals up to 120,000kms.* Shell Rimula delivers exceptional piston cleanliness, improving engine life and protection throughout the oil drain interval. Achieving longer oil-drain intervals can increase vehicle availability, decrease oil consumption and maintainance, improving your truck and business performance.

THE ENGINE OIL THAT WORKS AS HARD AS YOU. * Depends on engine type and operating conditions. Consult OEM reccommendations for oil-drain intervals.