Manufacturers' Monthly October 2014 by Prime Creative Media

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

OCTOBER 2014

Maton strikes the right chord

INSIDE >>

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Compressors & Pneumatics Compressing costs in tough times

Advanced Manufacturing Promoting global competitiveness by design

Materials Handling Thereâ&#x20AC;&#x2122;s a lot to gain from mobility

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Inside

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OCTOBER 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

■ Are we a risk-averse industry?

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

8 News & Analysis

Editor-at-Large: Alan Johnson Ph: (02) 8484 0725 alan.johnson@cirrusmedia.com.au Graphic Designer: Dave Ashley david.ashley@cirrusmedia.com.au

12 Comment

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

■ Beware non-conforming products ■ Mental health on the job

VIC/Overseas Sales: Michael Northcott PO Box 3069, Eltham, VIC 3095 Ph: 0448 077 247 michael.northcott@cirrusmedia.com.au

16 IT@MM ■ How to make money in the digital age ■ Carbon tax axing – what’s the result? ■ The key to supply chain success

NSW Sales: Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067 Ph: (02) 8484 0868 Fax: (02) 8011 3184 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 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 Fasteners & Adhesives 28 Cooling & Fans

■ The best of both worlds ■ Multi-purpose industrial adhesives

■ Hot tips on cooling the workplace ■ Cooling analysis service

46 3D Printing

30 Advanced Manufacturing

■ UV-resistant thermoplastic ■ Metal 3D printing systems

■ Promoting global competitiveness by design ■ 2016 a manufacturing ‘tipping point’

48 Materials Handling ■ There’s a lot to gain from mobility ■ Plana pallet wrapper ■ Colour label printer

20 Endeavour Awards

32 Productivity Improvement ■ Innovate or perish

51 What’s New

22 Compressors & Pneumatics

34 Material of the Month

■ Compressing costs in tough times ■ 12 Steps to a successful chiller project

■ The material of 1,000 uses

■ Hose reel range ■ Powered pallet jack range ■ High power air nozzles

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OCTOBER 2014

54 The Last Word ■ Getting our house in order

MATON manufactures a range of high quality acoustic and electric guitars that are recognised as some of the best in strikes the right chord the world. The company has a history of vertical integration that, while born out of necessity, has been carried through as a philosophy. Maton accepts that it must continue to evolve in order to remain competitive, 2 0 1 4 - 0 5 - 0 6 T1 5 : 0 7 : 0 9 + 1 0 : 0 0 and that this requires combining traditional INSIDE >>

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36 Sensors & Analysers ■ Laser shaft alignment tool

Behind the cover

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Maton

■ Understanding sustainable manufacturing

■ 2015 nominations now open

Average Net Distribution Period ending Mar ’14 18,459

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38 Manufacturing Sustainability

■ Snapshot ■ James Hardie may fall short on compensation ■ Subs may be made in Japan

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

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

■ Redundancy modules ■ Monitor senses via mobile phone network

Compressors & Pneumatics Compressing costs in tough times

Advanced Manufacturing Promoting global competitiveness by design

Materials Handling There’s a lot to gain from mobility

craftsmanship with advanced manufacturing technologies. The company has invested millions of dollars in a state-ofthe-art controlled atmosphere factory that features locally designed computer programs and CNC machines. It envisioned the ideal acoustic guitar and then worked backwards to establish the methods required to make it. Cover image: Tess Follet

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Comment

KEVIN GOMEZ – Managing Editor

Are we a risk-averse industry?

NEXTISSUENEXTISSUE • Automation & Robotics • Welding Technologies • Metalworking and Machine Tools • Motors & Drives • Protecting your IP • Production Software • Conveyors M A 1 1&1Palletisation 3 _ 0 0 0 _ T UR

T doesn’t take a rocket scientist to predict the outcome of a recent CFO survey in Australia. The American Express CFO Future-proofing Survey examined the views of 285 CFOs from companies with revenues between $2 million and $200 million as part of an exploration of their futureproofing strategies. Forty percent of those surveyed for the qualitative study were from the manufacturing and primary industry sector. The survey revealed that, comparatively, manufacturing is not a forward thinking sector when it comes to future proofing. Also, less CFOs in the manufacturing sector have a high or very high appetite for risk: 19 percent vs 30 percent average. CFOs in the sector are also less likely to have sufficient investment for recruiting, managing and leading employees (40 percent vs 64 percent average) and marketing and promotion (38 percent vs 52 percent). Australia’s manufacturing sector is dominated by SMEs and formed a significant proportion of those surveyed. As is often said, the CFO is the neck that turns the head and CFOs play a key role in shaping a company’s strategy and direction. So then, is manufacturng a particularly riskaverse industry? Last week I received a call from a manufacturing innovator who says he offered to transfer his proven technology to anyone interested – for free. The number of responses? Zero. He also knocked on the doors of many venture capitalists seeking to commercialise his technology, but was turned away. The door was often slammed soon after he mentioned ‘manufacturing’. Part of the misconception surrounding our industry stems from the stories that get covered in mainstream media. It’s the unfortunate truth – dismal news on websites garners more eyeballs. And this has an impact on the per1 2 0 1 3 - 1 0 - 0 9 T1 4 : 1 2 : 1 9 + 1 1 : 0 0 ceptions of those interacting with this industry.

It’s a big ask to make manufacturing cool again but there are many successes out there. Manufacturers’ Monthly recently published a Hidden Champions series showcasing small, nimble and innovative manufacturers who are, for want of a better word, cool. And we’re going to unearth and showcase more of them. What are the technologies that will shape manufacturing in the years ahead? The following six, picked from the latest IEEE report, are forecast to have a major impact over the next seven years. Sustainability will shape the goods we make and how we make them. Lighting, renewables, energy will be key drivers. Nanotechnology is going mainstream. It is already used in manufacturing sunscreen, tyres and medical devices. Expect more. Cloud computing will change the way manufacturers use software and store their data. Celebrity leaks nothwitstanding, data and software programs will reside in the cloud. The Internet of Things can be a fuzzy concept for some because it has so many different names. But devices with built-in sensors and internet connectivity are set to lower cost through automation, reduce loss and wastage and enable shorter durations for supply chains. 3D printing is an obvious one and this technology will move into mainstream manufacturing. Computer vision and pattern recognition will transform the shopfloor which will also see the increasing use of robotics. Do you have a list you’d like to share? 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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information on this new and exciting technology. 8 OCTOBER 2014 Manufacturers’ Monthly

www.bvproducts.com.au or www.bvproducts.com.au or www.hpsf.com.au www.bvproducts.com.au or www.hpsf.com.au www.hpsf.com.au

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AUSTRALIA’S LEADING SUPPLY CHAIN CONFERENCE & EXPO 26 & 27 May 2015 Melbourne Convention & Exhibition Centre

SMART conference will be held for the first time outside of Sydney, at the Melbourne Convention & Exhibition Centre on 26th & 27th May 2015. It promises to continue the strong tradition of delivering relevant supply chain & logistics practices, strategies and valuable information along with many networking opportunities directly to industry leaders. In 2015, not only have we rebranded SMART, we will be co-locating with National Manufacturing Week, which will add further benefits for attendees.

Key Dates Site Visits

25 – 28 May 2015

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26 – 27 May 2015

Supply Chain Industry Dinner & Smart Awards

26 May 2015

Please look at the website www.smartconference.com.au to see further details on these changes and the progressive updates on the program. Proudly brought to you by: apicsAU – The Society for Supply Chain Professionals, Logistics Association of Australia (LAA) and Interpoint Events.

Proudly brought to you by

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4/09/2014 11:07 am

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News&ANALYSIS James Hardie asbestos funds may fall short

AMES Hardie has confirmed the compensation fund for its asbestos victims will probably face a shortfall in the next three years. The Asbestos Injuries Compensation Fund (AICF) was set up to compensate the victims of James Hardie products containing asbestos. The AICF board has said that it probably won’t have sufficient funds to pay out claims by 2017. This has come about because the number of claims has increased in recent times. As a result, the AICF wants to enter into an approved payment scheme to cover the compensation claims. This would mean the company would pay money in instalments, rather than as a lump sum. Alternatively, the fund says, the lump sum payments could remain if the NSW government increases its loan to the MA 0 fund 9 1 4from _ 0 around 0 0 _ G$214 OO million to $320 million.

The Asbestos Diseases Foundation of Australia which represents victims 1 2 0 has 1 4attacked - 0 8 - the 1 2 plan T 0 7and : 5 3 : said James Hardie is responsible

PUBLICITY I have a nose for news, and a way with words. • 30 years’ experience writing for media and corporate communications.

You only pay for publicity results.* Call me today, obligation-free, to discuss how I can tell the world what’s good about your products. Mike Jacobson Good Publicity 0438 590 136 www.goodpublicity.com.au PUBLICITY - WEBSITE CONTENT - COPYWRITING

*Terms and conditions apply (see www.goodpublicity.com.au) 10 OCTOBER 2014 Manufacturers’ Monthly

and it, not the government, must pay. out of putting 5 3 “To + 1 try 0 :to0weasel 0 extra money in, is morally bankrupt

in my mind,” ADFA president Barry Robson said. “They created the problem, they are the ones that came up with this product, they are the ones that made millions and millions of dollars on it, they are killing Australians ... they must pay and do it in lump sums, not in instalments.” He added, “Asbestos victims don’t die in instalments, they don’t lose the ability work or care for themselves in instalments, yet James Hardie wants to see them compensated in that way.” In a statement, James Hardie said it had paid more than $721 million into the fund since 2007. The company confirmed its commitment to paying out up to 35 per cent of its net operating cashflow to the fund until at least 2045. The company finds itself in the current position even though it has paid shareholders dividends of almost $600m in the last two years.

Claim new submarines will be made in Japan THE next generation of Australian submarines will be built in Japan for $20 billion and South Australia will only contribute components to the vessels, according to a report. A senior source told the Adelaide Advertiser that the Japanese are all but certain to win the bid ahead of local manufacturers as well as German and French bids. An official decision will be announced in the defence strategic policy document in 2015. The Federal Government promised before the last election that the 12 next generation submarines would be built in South Australia. Such a project would cost around $36 billion and employ thousands of workers. However, in recent times speculation that this commitment would not be kept has increased. Last month, the visit of a delegation of about 40 Japanese submarine experts to the ASC facility in South Australia furthered raised concerns that the work would be lost. In addition, last month Defence Minister David John-

South Australia may miss out on submarine project.

ston declined to confirm that South Australia would get the work. Still, according to AAP, Prime Minister Tony Abbott said the local component of new navy submarines will be built in Adelaide. “The most important thing is to get the best and most capable submarines at a reasonable price to the Australian taxpayer – as I’ve stressed all along,’’ he told reporters. manmonthly.com.au

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In brief... Western Sydney industry to grow Western Sydney is on the cusp of major industrial growth, according to Department of Planning data. There has been a big jump of over 30 per cent – to 200 hectares from 150 the previous year – of land zoned for industrial employment.

Govt’s competitiveness agenda Federal Cabinet has approved a new competitiveness agenda, with support for areas of strength such as medical technology, mining and advanced manufacturing to be supported. Industry minister Ian Macfarlane pointed to the need for skills to match an increasingly niche, high-technology future.

Denso to end manufacturing in Aus Denso Automotive Systems Australia has announced that it will end local production because of the coming death of Australian car making. The company, which makes products including fuel pump modules and cooling components, has been operating in Australia since back in 1972 and at the Croydon site since 1989.

Call for STEM strategy Chief scientist Ian Chubb has released a report calling for a national plan on science, technology, engineering and mathematics. The report notes that Australia is the only OECD nation which does not have a STEM strategy. The report is the result of 18 months worth of development and consultation.

Caterpillar workers may keep jobs The 200 workers from Caterpillar’s plant in Burnie who are expecting to lose their jobs this year may now keep them after all, according the AMWU. They may hold onto them until April or May next year or possibly even indefinitely.

3D-printed car takes a drive A nearly-completely 3D printed car had its first drive after being created on site at the International Manufacturing Technology Show in Chicago. The car was designed by Local Motors and printed using a Big Area Additive Manufacturing Machine, made by Cincinnati Inc. in collaboration with Oak Ridge National Laboratory.

manmonthly.com.au

You can’t save manufacturing by first killing it WRITING in the September issue of Manufacturers’ Monthly, Shadow Minister for Higher Education, Research, Innovation and Industry Kim Carr took aim at recent comments by chief executive of the ANZ Bank, Mike Smith about the future of Australian manufacturing. He wrote – Mr Smith said that the death of the car industry was an inevitable part of the transformation of the economy to meet the needs of the 21st century.

Then came a punchline that revealed the bank boss’s shaky grasp of his own argument: Australia had to become more “technologically driven”, he said, so that it could concentrate on things in which it had an advantage – like “high-value manufacturing”. Just how we are to become more technologically driven by abandoning an industry that is the exemplar of advanced manufacturing and which has long been the great driver of innovation in manufacturing, Mr Smith did not say.

What members of our manufacturing community thought about Kim Carr’s views. Bibek Banerjee This article is excellent. Although I can see the need to make manufacturing technology driven, are the banks differentiating between the typical manufacturer and the technology driven manufacturer? If yes, we’d like to see what steps have the banks taken to sustain high value manufacturing. I won’t be surprised if the statistics points to the contrary. In this light, the death of the car industry statement coming from a banker is ridiculous. We all know the problems, question is what are the bankers doing to prevent / help the manufacturing sector? My guess is “nothing at all” – so there. Ron Well said, Kim Carr. The financial quarters still have a 50 year old mentality regarding the values of manufacturing in Australia. InnoFuture Mr Carr, great to see you carrying the passion for innovation, the previous Government so strongly demonstrated. I am equally appalled by Ian Smith’s statement and have already expressed my opinions in relation to the earlier article that quoted him. Such opinions can only come from a person who is totally alienated from everyday life and business in Australia. While applauding your advocacy for manufacturing in our

country, there is one problem that stands between all these funds and tax and interest rate initiatives and the results we want. It is also the reason why ALL initiatives like these (including: Enterprise Connect, Commercialisation Australia, CRCs, etc.) don’t work. And that is the lack of ‘continuity’ (“long tail”) of most of those projects. This is associated with the lack of strategic skills and having a long-term strategy by many Australian businesses – and especially those ‘subsidised’ projects. Often a great new product or technology invented in collaboration with our research organisations lacks a marketing strategy to make an impact. Many of these technologies have also ‘leaked’ out of this country because, in subsidising the research, there was no accountability for marketing strategy and long term economic benefits back to the taxpayers (if I can put it this way). The biggest problem for Australia’s future, and manufacturing is not the only industry affected, is that we also lack the “long tail” for this country: one clear strategic direction – one vision regarding the Australian industry, economy, society and nation we want. We desperately need one clear strategic direction – one Vision – for Australia as a nation; and mass re-education of Australian management in strategic

thinking for the long-term and for global competitiveness. Without this, sure there will be some individual success stories, but in the long term, our citizens will be the losers. Anthony Maybe manufacturers should consider approaching the EFIC as they can help facilitate funding with banks. xthestreams Why is it the Government’s job to help manufacturers convince the banks they are worth investing in? If there is a missing opportunity for finance in the sector I’m sure there would be many people trying to move in on the market and get some good returns.

What do you think? Go to www.manmonthly. com.au and make a comment about this or any other issue.

Manufacturers’ Monthly OCTOBER 2014 11

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Comment

INNES WILLOX – CEO Australian Industry Group

editor@manmonthly.com.au

Beware non-conforming products As we know, electricity can pose real safety risks. We need to be vigilant in ensuring that all electrical goods available in this country conform to safety standards. Innes Willox writes.

ing owners. This situation may lead As announced by the electrical to some building owners attempting safety regulators, affected cables inspections themselves and risking pose the safety risks of fire and electric shock. electric shock that will increase Practically, the recovery rate over time, with risks increasing for this cable recall will depend on significantly from 2016 onwards and whether building owners, builders particularly where cable is exposed and installing electrical contractors to heat. are aware of this recall notice, check The recall requires accessible their purchasing records and undercable and cable exposed to heat take action to check all potentially sources to be removed and replaced. affected installations. Practically this will see the removal Cable that is inaccessible and of cables in roof cavities, underleft installed now will continue to floor spaces and installed near heat degrade at a much faster rate than sources (for example heaters, ovens, quality cable and will require reranges and down lights). placement if disturbed in future. Installation inspections should be At that point, what may appear conducted by a qualified electrical to be a simple job of replacing an contractor. If affected cables are not found 1 2 during 0 1 4 - an 0 inspection, 7 - 1 0 T 0costs 9 : will 3 4 : 3electrical 1 + 1 0 :fixture 0 0 may require significant additional rectification work to need to be paid by home and buildreplace brittle and cracking electrical cable insulation. In this way, long-term asset values will be affected. Where cable is judged to be Surface Preparation Solutions inaccessible and not replaced under this recall notice, there is a requirement to identify such properties via a warning sticker in the meterbox. This will be seen by future property purchasers as increasing the risk and costs of such properties. Additionally, stickers may be removed by unscrupulous building owners, exposing new owners to increased safety risks and unforseen cable replacement costs. Non-conforming products skew the market against legitimate product manufacturers, suppliers and installers who are forced to compete against Airless and Air Blast Cleaning and Peening Equipment cheaper business models. Such nonComponent Cleaning and Degreasing Systems conforming products are cheap for Full Range of Quality Abrasives Quality Replacement Parts and Accessories a reason – they sometimes leave out Service available for all makes and models critical safety components and are of Australian Owned, Designed, and Built Since 1928 lower quality. In the recent case, key plasticiser CONTACT US TODAY! ingredients, important in retaining 19 / 257 Colchester Rd, Kilsyth, VIC, 3137 suppleness of cable insulation over P.O. Box 51, Bayswater, VIC 3153 time, were left out of the finished Tel: +61 3 9729 4333 Fax: +61 3 9720 4247 product. As such, the insulation will Web: www.granowski.com.au E: wgmailbox@granowski.com.au ultimately become brittle. While this

HE ACCC’s recent national recall of installed electrical cable provided a timely reminder of the impacts non-conforming products can have on safety, industry sustainability, productivity and long-term asset values. With an estimated 40,000 homes and businesses affected, conservative estimates place the rectification work into the tens of millions of dollars. The administration costs alone will be large when considering the supply chain has involved electrical and hardware wholesalers, builders, electrical contractors and building owners. The original cable supplier has been placed into administration and will not wear the cost of its foray into supplying M A 0 8 1 building 4 _ 0 0 products 0 _ G R Ain Australia.

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12 OCTOBER 2014 Manufacturers’ Monthly

allowed the cable to be manufactured cheaply, the overall costs associated with the sub-standard and unsafe nature of the product will easily outweigh the initial saving. Additionally, the “consumer guarantee” as defined by the Australian Competition and Consumer Act may be applied by homeowners. This law allows consumers to ask their electrician to replace all affected cables in their installation as these defective products would likely fit the definition of “major defect” under the Act, regardless of whether they are accessible or not. The cost to re-wire an entire home after it is already built can be many times the original cost to install cabling, as internal and external cladding may need to be removed and replaced to allow access. This situation could lead to the possibility of legal disputes between the liable parties (contractors, builders and cable suppliers) and may place contractor and building companies in financial stress as they will wear the initial costs of such replacement. To reduce the risk of another cable recall in future, electrical safety regulators should consider the re-classification of electrical cable into a higher risk category and the harmonisation of state electrical safety regulations to improve the visibility and traceability of suppliers and electrical products on the Australian market. Also, to reduce the incidence of fly-by-night operators, regulators should consider applying a risk management approach to building products and suppliers – including the possibility of recall insurance. Without this, the costs of recalls will continue to be borne by the supply chain in Australia and the Australian economy more broadly when weak suppliers fail. www.aig.com manmonthly.com.au

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Comment MARCO TURNER – ????????

editor@manmonthly.com.au

Mental health on the job By now it has become clear that mental health is a big OHS issue. As Marko Turner writes, the benefits of establishing a psychologically safe and healthy workplace cannot be ignored.

HE Australian workplace has hit a tipping point. The escalating business costs of ignoring psychosocial risks are becoming too great and the productivity benefits of a psychologically safe and healthy workplace are now identifiable and clearer to promote. With Australian businesses losing $14.81 billion each year to psychological health issues, organisations can no longer afford to be ignorant or reactive toward the risks and legislative requirements. Promoting mentally healthy workplaces is being globally recognised and now actively encouraged. In the last couple of years Australia’s business leaders have been coming together to take action based upon the emerging evidence. For example, a recent Price Waterhouse Coopers report demonstrated that Australian businesses will receive an average return of $2.30 for every $1 they invest in effective workplace mental health strategies. Psychologically safe and healthy workplaces are visible via a continuum. On one end, there are the unhealthy workplaces characterized by high levels of absenteeism, turnover, incivility, psychological injury and wastage as well as low levels of productivity, worker satisfaction and engagement. At the other end, there are psychologically safe and healthy workplaces with higher levels of respect, engagement, robust communication, good job fit and productivity. These are places where employees are engaged with their work and feel both physical and psychosocial safety. When all these conditions are met there are flourishing workplaces with high levels of sustainable productivity, performance, engagement and discretionary effort. The psychosocial hazards of work are growing and many working envi-

14 OCTOBER 2014 Manufacturers’ Monthly

ronments are becoming less physically active due to advances in technology and increasing emphasis upon the service sector. In this transition and with reduction in manufacturing the industry is therefore experiencing significant psychosocial risks associated with change, challenge and uncertainty. For those within manufacturing there are a number of unique stresses, such as survivor guilt. Recent revisions in workplace health and safety legislation have made employer and particularly manager/supervisor responsibilities for protecting employees against psychosocial risks ever more explicit. Nevertheless, given the escalating costs of psychological injuries employers can no longer take a reactive approach. Manufacturing, like every other industry, is now being compelled to incorporate the psychological dimensions and regularly audit and update their best practice policies. Employers taking this path must build the necessary and sufficient conditions for psychological safety and health to be established and then improved. For the manufacturing sector there is substantial evidence linking a physical safety climate to safety behaviour and performance, particularly in reducing industrial accidents and errors. The psychosocial safety climate of any organisation is now being seen as equally important – it can predict both the positive aspects of employee engagement, such as productivity, and the negative aspects of the modern workplace, such as bullying/ harassment and psychological health problems. Psychological health hazards and risks must first be identified and addressed before any growth rewards and productivity incentives can be fully utilised and truly realised. The problem with traditional ap-

Revisions in workplace health and safety legislation have made responsibilities for protecting employees against psychosocial risks ever more explicit.

proaches to psychosocial health hazards is that most of them are reactive and increasing in costs – to the corporate insurance premiums, the

“

A resilient workforce can respond positively to the pressures of potential downsizing... competitive advantage of the organisation and for the lives of employees. They typically only come into force once a problem is identified. Businesses that want to protect their employees and business from mental health issues must adopt a preventative if not proactive approach. This means ensuring they have the correct systems, policies, procedures and capabilities in place. Then we can build resilience capabili-

ties across the organisation and enable workers to improve and flourish. A resilient workforce is one that is equipped to deal with any mental health issues that might affect its employees. Most important for the manufacturing sector, a resilient workforce is able to respond positively to the psychological pressures of change, uncertainty and potential downsizing. At the core of a psychologically healthy workplace and key to its success are the individuals that make up the organisation. By proactively investing in their mental health businesses can protect against litigation and create a more positive work environment for everyone. [Marko Turner is a Senior Consultant Psychologist at CommuniCorp. He specialises in driving business development whilst promoting organisational health.] Communicorp 1300 855 140 www.communicorpgroup.com manmonthly.com.au

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TechnologyIT@MM How to make money in the digital age In this digital age, hardware manufacturers looking to become intelligent goods manufacturers need to incorporate software licensing and entitlement management into business operations. Cris Wend writes.

RIVEN by a growing ‘intelligent’ economy, where consumers expect instant, iTunes- style fulfilment of software requirements, manufacturing is in the midst of a rebirth. Today, manufacturers require nimbleness to quickly create, configure and respond to changes in tight timeframes and an increasingly competitive landscape. In this landscape, long design and production lead times, physical product variants and complex supply chains are no longer tenable. Instead, to keep up with consumer demands, manufacturers need to circumvent the physical production process and go to market faster with differentiated product offerings. To do so, they must embed software into their products or develop stand-alone applications that power the hardware. What we’re left with are intelligent, easily configurable, differentiated and ultimately monetisable products. And this also applies to their supply chain – many enterprise resource planning (ERP) systems historically used for planning, production and logistics are inadequate to accommodate products that are increasingly going to market using a softwarefocused business model. The Internet of Things is built on a different paradigm of product creation, packaging, configuration, monetisation and IP protection, relying on the primacy of the application, with software licensing and entitlement management as the mechanism that monetises value, tracks up-sell opportunities, and protects the manufacturer’s IP from pirates and hackers. In this model, the product of the “supply chain” isn’t a physical good, but rather a series of usage or access rights (called entitlements) that are

16 OCTOBER 2014 Manufacturers’ Monthly

redeemed, updated, and replenished over time. These rights, when purchased, can expand and broaden the function and access of the physical devices. The concept is similar to the iPhone. Simply put, the iPhone is merely the physical platform for which third party developers write software programs and thereby expand the device’s functionality. Ironically, this is already a common model in industrial automation, where a community of developers writes programs for the embedded software on controllers and devices to optimise the manufacture of other physical goods. Hardware manufacturers looking to become intelligent goods manufacturers need to incorporate software licensing and entitlement management into the business operation. Entitlement management ensures that the software-provided functions or “entitlements” are tracked, redeemed, updated, replenished, moved and enhanced within the confines of users’ entitlements or purchased privileges (often based on software license agreements). Entitlement management functions must never be forced into the hardware supply chain or enterprise resource planning (ERP) system. Instead, re-designing select business processes (e.g. existing “quote to cash” processes) to integrate an entitlement management system with the ERP system is advisable. This will also enable manufacturers to provide partners/customers with a self-serve portal to redeem and manage their “entitlement rights”. So let’s see how the integration between the entitlement management and ERP systems works: • As a result of a customer or channel partner order, a financial trans-

action is processed in the ERP system where products or stock keeping units (SKU) that require an “entitlement” to software-based functionality is completed. • This information is transferred into the electronic manufacturing services (EMS) via an automated web-services feed. • Immediately, an “entitlement” is created in the entitlement management system based on the software entitlement rights that were ordered. • The partner or customer is notified (typically via email) by the entitlement management system that their software rights are ready for redemption. This notification is often the revenue-recognition event when the only deliverable is an entitlement right. It is the software equivalent of Freight on Board. • The customer is then able to register, download the software and activate entitlement rights by downloading it at the self-serve portal through proper login credentials, and acquire the rights to use the product. Alternatively, the initial set of rights can be installed during the manufacturing process. • The customer or partner can subsequently return to the self-serve portal to view rights, move entitlement rights among devices (if allowed by manufacturer’s policy),

download updates, or, add-on additional rights. To ensure that this approach works smoothly, it is imperative that the manufacturer has the processes in place to package its software into commercially valuable units, and assign software part numbers to these units. By adopting such an approach, manufacturers can tangibly reduce manufacturing costs and gain higher profit margins. Furthermore, they can recognise revenue instantly – even when the software isn’t downloaded by the user. Critically, digital device manufacturers can future-proof their businesses by creating a scalable, extensible platform for digital rights delivery via a variety of methods including Software as a Service, virtual appliances, enterprise licence agreements or any other proprietary revenue model too. With the emergence of the Internet of Things, ‘digital’ is the only way forward for manufacturers. [Cris Wend is Principal Consultant with Flexera Software’s Global Consulting Services Organisation]. Flexera Software 03 9895 2000 www.flexerasoftware.com manmonthly.com.au

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The repeal of the carbon tax means you can focus more heavily on keeping your environmental credentials in check.

Carbon tax axing – what’s the result? The repeal of the carbon tax has stolen plenty of headlines recently. Mike Lorge looks at what is it likely to mean for the nation’s manufacturers.

HE carbon tax has been at the centre of plenty of debate over recent months - not the least when the decision was made to repeal it on 17 July. Many industries were affected by the decision; manufacturing is just one of them. The announcement was met with mixed reactions – what’s the effect likely to be on manufacturers? Reducing cost pressures. Like many industries, costs are rising for the nation’s manufacturers, making it more important than ever for them to focus on your bottom line. The removal of the carbon tax is expected to lead to a decline in energy costs, which will no doubt come as good news across the sector. Unlike some industries, manufacturing is at the mercy of trade and export strategies, making it more important than ever to keep costs under control. One of the other major issues is that manufacturers often rely on international trade ties to keep themselves operational. The carbon tax increased costs associated with transactions, no doubt leaving some trading partners to go in search of alternative M A 1 0 1 as 4 costs _ 0 0soared. 0 _ SAG arrangements

manmonthly.com.au

Companies had found themselves unable to pass on the tax through higher costs, leaving them little choice but to shoulder the burden presented by the carbon tax. This usually means looking for alternative cost cutting measures, which has the potential to lead to a decline in the quality of the offering or customer service provided. As a result, manufacturers were left with a delicate balancing act of keeping their customers happy while minimising expenditure wherever possible.

Increasing efficiency

There’s also the Emission Reduction Fund, which has the potential to open up new funding to manufacturers and other industries. Even though the carbon tax might now have been withdrawn, companies still face reporting obligations until October. Final payments should be made by February next year and you need to be aware that non-compliance penalties will continue to be in force. Staying ahead of the curve is essential no matter what business you’re in, and the repeal of the carbon tax means you can focus more heavily on keeping your environmental credentials in check.

It would also be fair to say that business productivity can improve now the carbon tax has been rescinded. It’s one less regulatory burden to keep up with, enabling business owners to focus on other areas of their operations. There are still plenty of other enHow ERP software can help vironmental considerations that need Carbon tax or no carbon tax, it’s to be made. Large-scale manufacturessential that businesses keep costs ers must realise that the National down and improve efficiency as much Greenhouse and Energy Reporting as possible. scheme will remain in place, which This is where enterprise resource requires them to report carbon emisplanning (ERP) solutions can really sions, as well as energy consumption come into their own. Imagine having 1and2production. 0 1 4 - 0 9 - 1 1 T 1 4 : 4 3 : 5 an 5 +overview 1 0 : 0of 0 everything going on in

your business through a single product that’s both user-friendly and intuitive – that’s what ERP has to offer. A good ERP system should be flexible and able to adapt to changes in the legislative environment, which may become more important as issues such as the carbon tax continue to be addressed. The Renewable Energy Target is also up for discussion at the moment, so you have every need to make sure your business is ready to adapt as and when it’s necessary. There’s no substitute for being well prepared in business no matter what policy changes might be thrown your way, so make sure your manufacturing operations are ready with ERP software. [Mike Lorge is Managing Director of Sage Business Solutions] Sage Business Solutions 13 7243 www.sagebusiness. com.au

Manufacturers’ Monthly OCTOBER 2014 17

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Technology IT@MM The key to supply chain success By integrating all supply chain processes in a single, unified system, manufacturers and distributors can replace complexity with fluidity, and educated guesswork with real-time transparency and execution. Mark Troselj reports.

USTRALIAN manufacturers, wholesalers and distributors are under pressure to rethink their supply chain processes and systems as a result of the many curveballs the global marketplace keeps throwing their way. No longer can they think that their business won’t be impacted, as it certainly isn’t easy to remain viable and thrive in this current environment. Many have turned to lean manufacturing and efficiently managed supply chains as the foundations for how successfully they can compete. But they also don’t come without their own challenges. There’s no doubt that supply chains have matured over the years to become faster and more interconnected, but they’ve also grown more complex. The truth is that no matter whether the manufacturer or a distributor has a single location or a global network of distribution, manufacturing and 3PLs, all modern manufacturing business is global. Between multitier supplier networks to globally distributed customers, all business is distributed. More suppliers mean more points of integration across supply chain infrastructures. It’s also not uncommon for a manufacturer and distributor to have to manage orders and payments in MA 0 5 1 4 _ 0 0 0 _ B O G different currencies, tax rates and

Simply putting in an efficient manufacturing or supply chain system isn’t going to save a business. processes that unfortunately obscure government regulations, as well as visibility and insight, such as sepafulfil and ship products across interrate systems for order management, national borders. Unfortunately, the customer relationship management development of lean manufacturing (CRM), inventory management, acand complex global supply chains counting, shipping and more. They have left businesses increasingly conflict with objectives to increase exposed to disruption, while adding agility, reduce cost and risk in the cost and risk. supply chain and drive innovation To meet these requirements, through collaboration internally and businesses are often forced to piece 1 2 0 1 4 - 0 4 - 0 4 T1 5 : 0 5 : 4 0 + 1 1 : 0 0 with external partners. together multiple systems and

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Purely putting in an efficient manufacturing or supply chain system isn’t going to save a business. To keep up with the global marketplace, manufacturers and distributors desperately need to integrate and automate all of the business processes and data to support expansion, as well as to ensure cost-effective and profitable operations. They also need to be able to oper-

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ate and have complete visibility of the entire business in real-time. You can only do that with technology via the internet. That means operating your entire supply chain from one system on the internet – giving you deep, and up to the minute visibility of every interaction, transaction and relationship occurring in your business in every market, anywhere in the world. This is where cloud computing plays a crucial role in helping Australian manufacturers, wholesalers and distributors achieve supply chain success beyond traditional borders faster. The Cloud gives businesses the ability to operate in global markets in real-time and establish a core platform for manufacturing, wholesale distribution, customers and supply chain that they can access from anywhere and at anytime, without considerations of currency and foreign exchange. A business can have all of these components in a single cloud business management system, which can completely transform and modernise manufacturing and supply chain. They can then just replicate for whichever supplier, distributor, retailer or wholesaler they forge a relationship with and be up and running with that system in real-time and at the same time. Traditionally, businesses have been doing this by fax, email, Excel spreadsheets and by giving people access to separate instances of applications in different countries. Others have been relying on integrating with the suppliers, manufacturers or distributors’ systems in some other format. All of this resulted in delays to MA 0 5 1 4 _ 0 0 0 _ B O G 1 gather, enter and collate this infor-

The Cloud gives businesses the ability to operate in global markets in real-time.

mation to get a real view of what was happening in the supply chain. It also resulted in heavier costs most distributors and manufacturers are looking to strip out to increase their competitiveness. By transitioning people, processes and partners to the cloud, manufacturers and distributors are achieving the key objectives of a modern supply chain, rather than facing the disparate data, high costs and rigidity of traditional software and servers.

Businesses stand to gain:

“

It’s not uncommon to have to manage orders and payments in different currencies, under different tax rates and government regulations...

• Greater visibility: Limited visibility tors are better positioned to sense is a key foil in efforts to increase and respond to customer demands supply chain efficiency, assess and synchronise operations with a supplier performance, rationalise global supplier base. spend and ensure optimal inventory levels across channels. By modernis- • Improved agility and resilience: In our hyper-speed digital world, ing systems around a more unified fortune favours those who can react architecture that makes on-demand swiftly to address challenges and visibility into real-time data pos3 2 0 1 4 - 0 4 - 0 4 T1 5 : 0 6 : 5 8 + 1 1 : 0 0 seize new opportunities as they sible, manufacturers and distribu-

emerge. Progressive organisations are moving to cloud systems and eliminating the substantial time and cost investment to launch ventures in new markets or geographies that traditional in-house systems require. • Reduced cost and risk: It’s no longer sufficient to track costs in the aggregate. Leaders are monitoring and managing at a more granular level costs surrounding logistics and fuel costs, tariffs and potential contingency expenses to identify incremental savings. • Innovation through collaboration: Moving supply processes to the cloud makes it possible for data to flow seamlessly across an extended network. Organisations and their trading partners can also communicate in lockstep with the same data, audit trails and real-time accuracy at every stage. There is no doubt that cloud-based business management software is the type of integrated platform that can support global distribution and the many complex processes and details that are part of every transaction. By integrating all supply chain processes in a single, unified system—manufacturers and distributors are positioning themselves to replace complexity with fluidity, and educated guesswork with real-time transparency and execution. These are the ingredients that will define success in today’s volatile, fast-changing markets. [Mark Troselj is managing director for NetSuite in Asia Pacific and Japan] NetSuite 02 9464 6100 www.netsuite.com.au

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EndeavourAWARDS Enter online at manmonthly.com.au

Endeavour Awards – nominations open!

ALLING all Australian manufacturers… Do you have a successful business? Have you completed an impressive project or come up with an innovative environmental solution? Have you enjoyed recent export success or transformed your business into something better than it used to be? If you answered yes to any of the above, then it’s time to nominate for the 2015 Manufacturers’ Monthly Endeavour Awards. All you need to do is head to www.endeavourawards.com.au and fill in your nomination. Now in their 12th year, the annual Endeavour Awards seek out excellence in the Australian Manufacturing Industry. The awards cover 12 categories, including Exporter of the Year, Young Manufacturer of the Year, IT Application of the Year, the Lifetime Achievement Award, and Most Innovative Manufacturing Company. The big one – Manufacturer of the Year – is chosen from amongst the winners of those categories. Building from year to year, the Endeavour Awards program carries with it a good deal of prestige. Winners and finalists only stand to benefit from their participation in the program. And all finalists receive two free tickets to the Awards plus online coverage of their participation. Nominations are evaluated by an independent panel of judges drawn from industry and academia. There is no limit to the number of categories each entrant can be nominated for and businesses are encouraged to nominate themselves. All nominations are free of charge. In keeping with tradition, the award winners will be announced at a dinner, timed to coincide with National Manufacturing Week. Last year both events were in Sydney, so in 2015 it’s Melbourne’s turn. (More details regarding a date and venue will be available closer to the event – ed.). 20 OCTOBER 2014 Manufacturers’ Monthly

Apart from the presentations, the night is a chance for manufacturers to do of bit of networking, pat each other on the back, and enjoy themselves. An entertaining MC (Vince Sorenti was the man in 2014) is always on hand and each year a key note speaker is invited to provoke the audience with his/her ideas and opinions. This year’s speaker was Allan Ryan of the Hargraves Institute, while (then Opposition Leader) Tony Abbott spoke in 2011. Significantly, this year Manufacturers’ Monthly is partnering with the Hargraves Institute to promote the Edison Awards, a worldwide program open to anyone who has a commercialised product or service. Our partnership has been formed to provide exposure for Australian manufacturers wanting to attract new customers and potential partners overseas.

Award Categories Technology Application – Suitable for those looking to submit successful applications of new technology in manufacturing processes. It also includes upgrades and modifications of existing technologies that deliver tangible benefits. Exporter of the Year – For companies who have successfully entered or are developing an export market with a new or existing locally-made product. Breaking into an overseas market is a challenge for Australian exporters; this category turns the spotlight on the companies that persevere and succeed. Environmental Solution – Care for the environment is becoming increasingly important and manufacturers have to meet many mandated requirements. This category recognises manufacturers who have successfully implemented solutions designed to reduce their environmental impact. Safety Solution – Safety is of utmost concern and this category highlights the unique products, solu-

tions and programmes implemented by or developed for manufacturers. Nominations should highlight the benefits and provide detail on the process or technology that makes it a powerful solution. Global Integration – Many Australian companies have developed unique expertise and/or components

that allow them to plug into global supply chains. Tell us your projects and services, collaborations, skills and the people who make it happen. Business Transformation – Designed to recognise an Australian SME that has successfully transformed their manufacturing operation, increasing productivity, innovation and competitiveness as a result. Australian Industrial Product – There many innovative industrial products and solutions being developed locally. This category highlights manmonthly.com.au

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Marand Precison Engineering was named Manufacturer of the Year for 2014.

Then Opposition Leader Tony Abbott spoke at the 2011 Endeavour Awards.

new, innovative Australian-made products designed for industrial applications and turns the spotlight on the people who make them. Young Manufacturer of the Year – To ensure the continued evolution and transformation of the industry, we need to acknowledge, support and nurture our rising stars. This award seeks out the young leaders of tomorrow – the future of our industry depends on them. Lifetime Achievement – Our industry is built on stalwarts who have

dedicated their lives to manufacturing. Over a few decades, their actions have positively influenced their companies and the industry. This special award recognises a person who has made a significant individual contribution to the industry. Most Innovative Manufacturing Company – This award recognises a manufacturer in Australia that has thought ‘outside the box’ to implement a new business idea. This could be shown in the form of pioneering technology, innovative

process, or added value to Australia’s manufacturing sector. This category recognises Australian companies for ingenuity and farsightedness. IT Application – Most manufacturing operations depend on a solid infrastructure and a key part of this is IT. This award recognises novel and M cost-effective A 1 1 1 3 _ IT 0 0applications 0 _ BOK and implementations that made a

significant and positive impact on the business in terms of efficiency, cost management and profitability. Manufacturer of the Year – One trailblazer which stands out for outstanding innovation in the areas of technology, management, and product development. This company 1stands 2 0 as 1 3a beacon - 1 0 - of 0 hope 9 T 1for 4 :oth1 3 : 4 6 + 1 1 : 0 0 ers in the industry.

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Compressors& PNEUMATICS Compressing costs in tough times Air compressors can be costly to run, but new solutions now on the market are designed to help lower the price of production. Sarah Falson looks at some of the latest offerings.

VERY day manufacturers are facing an uphill battle to drive down costs. While purchasing new equipment may seem counterproductive, machinery suppliers are constantly working to incorporate technology in to their equipment to help manufacturers save money and remain competitive. Thus, investing in the latest technology available on the market can be a positive move towards curbing expenditure in the long-term. Following are just two of the many companies making in-roads in compressed air systems to help Australian manufacturers lessen their running costs. These systems are designed to help make efficiency improvements, while offering high levels of performance and reliability.

Performance and efficiency In Kaeser Compressors Australia managing director, Peter Eckberg’s experience, the two big issues facing manufacturers using compressors today are: total cost of power; and the flow-on effects of the automotive industry moving offshore. “Uncertainty surrounding power costs remains a substantial issue that Australian manufacturers are facing, currently fuelled by the ambiguity surrounding potential changes to MA 0 8 1 4 _ 0 0 0 _ S O U the Renewable Energy Target and

22 OCTOBER 2014 Manufacturers’ Monthly

The new DSG and FSG series of dry-running rotary screw compressors from Kaeser are available with cost-effective air-cooling for drive powers up to 355 kW. the likely impact that would have. sized companies in the automotive With the energy costs of a compresindustry when it comes to investment sor accounting for well over half of – a climate that is infectious and its lifetime costs you can understand spreads to other sectors.” why any decision on power costs Kaeser Compressors Australia – would impact a compressed air user,” based in Dandenong South in Victoria Eckberg told Manufacturers’ Monthly. – supplies a range of compressors from 2.2 to 500kW along with associated “Another key issue facing Australauxiliary equipment designed for a ian manufacturers is the proliferarange of manufacturing applications. tion of car manufacturers choosing Eckberg says current customers to move their manufacturing away are asking for reliable compressed from Australia. This has created an 1 2 0 1 4 - 0 7 - 1 1 T0 8 : 5 3 : 2 4 + 1 0 : 0 0 air systems that deliver maximum element of uncertainty with medium-

performance and efficiency, while representing value for money. “Optimising the performance and energy efficiency of air technologies are key areas where we continue to see the most development,” he said. “The enhanced airend design at the heart of each Kaeser rotary screw compressor is such an example. This specially-designed airend with flow-optimised Sigma Profile rotors delivers more compressed air per kW of input power for less energy consumption.” Kaeser recently introduced a new range of dry-running, two-stage rotary screw compressors, the DSG and FSG series, designed for applications where dry ‘oil-free’ compression is specifically required. “At the heart of these versatile units lies a quality, two-stage compressor airend. The rotors are equipped with Ultra Coat, which is resistant to temperatures up to 300°C. Because this cost-reducing coating is also highly abrasion-proof, its sealing and protection performance remains virtually unchanged even after years of operation,” explained Eckberg. “As a result, compressed air delivery also remains consistent, which means that dry-running rotary screw compressors from Kaeser consume no more energy after years of use than when first commissioned in order to

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deliver their rated free air delivery. Ultra Coat therefore helps to keep total system costs to a minimum.” Kaeser’s latest generation of filters is also designed with energy efficiency in mind, offering minimal pressure differential. “Low pressure differential means lower energy consumption, but that in itself is not much use if the filter cannot provide the required compressed air quality,” said Eckberg. “Kaeser filters deliver both. These performance characteristics were determined in accordance with ISO 12500-1, the quality standard for filters, and were tested and verified by an independent body. Accordingly, the new deep-pleat KE (Kaeser Extra) aerosol filter achieves a residual aerosol content of 0.01 mg/m³ with a saturation differential pressure of no more than 200 mbar.

The Kaeser filter range covers four different element grades for filtration of aerosols, dust and oil vapours.

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“The Kaeser filter range covers four different element grades for filtration of aerosols, dust and oil vapours. Compressed air can therefore be treated to suit the needs of the specific application in accordance with ISO 8573-1 purity classes.”

Reliability key CAPS product manager – rotary screw compressors, Dino Alessio, says there is an “ongoing tug-of-war” for Australian manufacturers who use compressors. “They are looking to keep their life-time costs low which can be achieved with new energy saving technologies and premium products, however they are also facing pressure on capital budgets – so basic, less efficient and cheaper products need to be considered also,” Alessio told Manufacturers’ Monthly. “Reliability is usually the key requirement our customers demand. They want robust and ‘fool proof’ compressor systems that will not shut down and leave them without air. This can be assured with Progressive Adaptive Control (PAC) technology, which continually monitors key operating parameters of a compressor.” Alessio says air quality is also a high priority, as contaminated air can cause premature corrosion. “Impurities and contaminants, such as silicone and dust, can build up to cause restrictions and blockages in compressor lines, which in turn impact on the performance of motors and other components,” he said. “Lastly, our customers want compressors that are energy efficient

Ingersoll Rand R-Series rotary screw compressors offer next-generation features such as an Xe-Series controller that permits remote-control of the compressor from any PC, tablet or smartphone. with lower electricity and water usage requirements, as well as systems that produce biodegradable waste. “CAPS caters to these demands with our Variable Speed Drives (VSD) compressor, two-stage rotary airends and Ingersoll Rand’s biodegradable lubricant, Ultra Coolant.” According to Alessio, investment in developing extended life lubricants is already showing its potential to significantly reduce waste and save manufacturers thousands. “The widespread adoption and costs reductions of Variable Speed Drive (VSD) technology is also proving an industry game changer – the technology is now considered and used for smaller compressors when it was previously only viable in larger kW systems,” he explained. “Small to medium owner-operated businesses across the manufacturing industry tend to be more receptive to new compressor technologies because they want to lower their compressor

life-time costs. Smaller businesses cannot afford the expenses associated with unplanned stoppage or disruptions and therefore seek solutions that will mitigate that risk and save money long-term. “Often, larger corporate businesses are slow adopters – quite conservative and wary of anything new or different. This is particularly true of the medical and food processing industry, which depend on the reliability and safety of their processes. We make it a priority to reassure these sectors that CAPS’ technologies are time-proven, having been thoroughly tested and operating for years overseas before being released in Australia.” CAPS Australia 1300 284 896 www.capsaust.com.au Kaeser Compressors Australia 03 9791 5999 www.kaeser.com.au

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Compressors & PNEUMATICS 12 Steps to a successful chiller project Process cooling can be achieved by using an industrial chiller to remove heat. Daniel Rollston lays out a 12 step Chiller Project Success Plan to assist with this process.

ROCESS temperature control can take many forms and frequently involves the use of an industrial chiller to remove heat. Water is often the cooling medium at the heat source with the heat then removed by the chiller. Process cooling could be direct machinery cooling, jacketed tank cooling, lubrication oil cooling or air cooling via finned heat exchangers. Whatever the application, chillers are often a high capital cost item and a large electricity user. It is important to not only make the correct chiller purchase decision, but to consider all major factors that contribute to overall project success.

1) Know your figures Spend time to ask the right questions about Mall A 1areas 0 1 4of_the 0 0chiller 0 _ AinstalTL lation. Ask the chiller supplier for a

ning costs. A good chiller manufacstandardised process for collecting turer can assist with this. this information. Determining the heat load is the 2) Determine if a chiller is the most important and sometimes the right equipment most difficult thing to do. Determine if it is constant, or has peaks There are many ways to cool proof extreme heat or cold. In all cases cesses and machinery. A chiller may the information required to specify a not be the most effective method. The cooling system is the water temadvantages of chillers include temperature required from the chiller, perature stability, low maintenance water return to the chiller, water flow costs, ease of piping of chilled water required at the heat source and presto many applications, and no requiresure drop through the heat source ment for ongoing water treatment for and pipework. For machinery cooling, legionella bacteria – a requirement the suppliers of the machinery should for cooling towers. be able to advise cooling requirements. Otherwise the chiller supplier 3) Know your climate should be able to advise. Be aware of maximum summer The biggest issue here is chiller temperatures and minimum winter water supply temperature. Why? Run- temperatures. It is important that ning the chiller with a warmer water chillers are designed to operate at 1outlet 2 0temperature 1 4 - 0 9 - will 0 8 save T 0 power 9 : 0 4 : 4 these 0 + 1conditions. 0 : 0 0 Look at the average – it could be as much as 40% on runtemperatures because this will de-

termine the chiller performance and expected electrical power consumption over the year. Installation location is an important element. Consider heat sources such as waste heat from generators or air compressors or radiant heat from building walls as these will all raise the operating air temperature where the chiller is located and will impact chiller performance. Ideally chiller air intakes should be away from heat sources. Check the install location with the chiller supplier. For best results, a shade cloth or enclosure can be used to shield the chiller from excessive solar heat, however this must be installed in such a way as to not reduce air flow.

4) Choose between air cooled or water cooled chillers Both air cooled and water cooled

MORE THAN JUST AIR • Compressed Air • Vacuum • Nitrogen • Oxygen • Service • Low Pressure • High Pressure • Class Zero • Reticulation • Energy Savings • Audits • Optimisation • Purification

Atlas Copco have an extensive range of products and services to support manufacturers throughout Australia.

1800 023 469 www.atlascopco.com.au

24 OCTOBER 2014 Manufacturers’ Monthly

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chillers use a refrigeration system and have a cold side heat exchanger (evaporator) where the refrigerant gas collects heat from the water stream and a hot side heat exchanger (condenser) where the refrigerant gas discharges heat from the system. The difference between the two is the type of condenser. Air cooled condensers are typically made of copper tubes and aluminium fins similar to a radiator. The refrigerant gas is inside the copper tubes and as ambient temperature air is sucked across the fins by the condenser fans the heat energy is transferred from the refrigerant gas into the air flow where it is exhausted as waste hot air. Water cooled condensers are typically a shell and tube heat exchanger where refrigerant gas is in the shell side with cooling tower water circulated through the tubes. The heat energy is transferred from the refrigerant gas to the water which then flows to the cooling tower where it is removed by way of evaporation. In terms of capital cost air cooled chillers M Acan 1 0 have 1 4 _a lower 0 0 0 up _ Cfront AP capital cost when compared to the

Hydraulics can be utilised in air cooling. fit of less infrastructure requirement full scope of equipment required for 1a new 2 0water 1 4 -cooled 0 9 - system. 1 6 T 1 4 : 0 3 : 5 and 0 + ease 1 0 :of0installation. 0 Water cooled chillers require a Air cooled chillers have the bene-

Manufacturers-Monthly-Half-Page-Horizontal-Ad_FINAL.indd 1

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cooling tower to operate and require infrastructure such as water piping and pumps to the condenser. Ad-

16/09/2014 1:07:59 PM

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Compressors & PNEUMATICS ditional pumps or pump upgrades may be required as part of a new chiller installation. The cooling tower capacity should be checked to make sure there is adequate capacity for the new chiller heat load. Cooling towers can be a breeding ground for legionella bacteria so require regular chemical dosing and licensing with a local Government authority and could be subject to regular inspections. Cooling towers work better in drier, rather than humid conditions and use large quantities of water.

5) Ensure adequate air flow For air-cooled chillers there needs to be adequate air flow both onto the chiller condensers and out of the chiller fans. If ducting is required the chiller condenser fans may need to be specified as a higher static pressure type. Ducting diameter and length will impact the chiller fan air flow performance so this should be communicated early to the chiller supplier.

6) Check your power Site power should be checked to ensure there is adequate power to run chillers and water pumps. The price to install new transformers, sub mains, sub boards and any other electrical contracting required for the chiller should be taken into account in the project budget prior to proceeding with the project. Power stability should also be checked and communicated to the chiller manufacturer.

7) Know your control requirement Chillers can be configured to operate in many ways. Following are some options, ranging from lowest to highest cost: • Local operation (switch the chiller on or off at the machine) • Remote start stop / remote general fault (start and stop from a switch room) • High Level Interface (control the chiller through Plant PLC or Building Management System) • Remote service monitoring (control the chiller remotely via the Internet or via GSM sim card)

8) Check your water The available water supply should be checked for suitability as a process 26 OCTOBER 2014 Manufacturers’ Monthly

water fluid. Allowance should be made for dosing water with corrosion inhibitors. Water piping should be sized adequately for chilled water flows and for future expansion. Consideration should be given to mixed metals within the system and the interaction between them. A water treatment company can be engaged after the chiller installation for periodic dosing of corrosion inhibitor and biocide. Unlike cooling towers there is no licensing requirement for chilled water systems, and no legislated periodic maintenance required. Water quality maintenance is good practice and a cleaner system lasts longer and gives better heat exchange – saving power.

9) Allow for expansion Can additional infrastructure be installed now that takes into account future growth? A small amount spent today can have big savings in the future. Water piping for additional processes or chillers can often be installed at the same time as installing the chiller, even if full piping is not installed, tees with shut off valves

installed at the time as the initial chiller project can allow for future piping connections to proceed without the need to stop production. Can electrical supply be allocated for expansion? Make cable trays wider for additional cable. Make distribution boards big enough for additional chillers or equipment.

10) Plan for redundancy/ multiple systems Is there a need for multiple refrigeration circuits within the chiller that would allow for continued chiller operation even if there was a failure in one of the chiller compressors? This would be advised where there is a single chiller on site. Where multiple chillers can be used is there total redundancy across all aspects of the system: pumps, chillers, and controllers? Make sure the chiller controller can automatically cycle the duty motors to equalise run hours.

11) Know your load variation

capacities. Chillers are subject to the weather. They will already do this and will automatically save power as a result, however many chillers are not designed to run at partial loads for extended periods of time. This should be communicated with the chiller manufacturer. For all process chilled water systems an insulated thermal buffer water tank is recommended in the system to stabilise the water temperatures and to reduce hunting on controls.

12) Choose a good freight company Make sure you have a freight company that can move chillers and have transport insurance in place. [Daniel Rollston is General Manager of Summit Matsu Chillers. He has worked in every area of the industrial chiller manufacturing business which he started in 2003.]

Process heat load variation can cause chiller controls to hunt and for chiller systems to run at partial

Summit Matsu Chillers 1300 948 844 www.matsu.com.au

Oil-injected rotary screw compressors ATLAS Copco has unveiled the latest GA 9±160 range of oil-injected rotary screw compressors, designed to reach new productivity levels and reduce operating costs. The patented screw element is packaged in a new enhanced design which improves the performances by up to 5% compared to the previous generation. New innovative features help to increase the availability and durability of the compressors. Thousands of Atlas Copco GA air compressors are operating around the globe in applications like power plants, mining, cement, glass and metal industries. The new range is the result of solid industry knowledge combined with innovative features. With its high-cooling capacity, GA air compressors can perform in all demanding operating conditions and The compressor range includes energy savings features like the IE3 motor. up to 55°C/ 131°F. The intelligent control and monitoring systems, the Elektronikon and the SmartLink, offer to improve the process’ reliability and increases the energy many possibilities to optimize the compressor operation and savings. With the reduced floor space requirement, and the further increase the savings. To reduce the operating costs, the all-inclusive package, the installation costs are considerably new range offers longer service intervals and reduced maintereduced. nance time. The compressor range includes energy savings features like the IE3 motor, the no-loss water separator drain, the energy Atlas Copco recovery module and the in-build dryers. 1300 667 044 The unique integrated dryer concept delivers clean, dry air www.atlascopco.com.au

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When only high quality clean compressed air will do

Producing clean compressed air is vital for many processes where the risk of oil contamination within the compressed air system is unthinkable. For such demanding applications KAESER presents a powerful range of dry-running two-stage rotary screw compressors. These models not only deliver high quality and 100% oil free compressed air, but thanks to the inclusion of a tried and tested dryrunning, two-stage rotary screw airend, they also provide optimum performance and maximum efficiency - even under the toughest of conditions. And, when it comes to the life-cycle costs of these models, you will be pleasantly surprised by just how inexpensive maintenance and consumables are with KAESER. Available water- or air- cooled with drive powers up to 355 kW and free air delivery up to 51 m3/min, when only high quality clean compressed air will do think KAESER. Discover your dry-running rotary screw compressor solution today!

www.kaeser.com.au Kaeser OF Ad_Mfr Monthly Oct 14.indd 1

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Cooling& FANS Hot tips on cooling the workplace With extreme temperatures expected again this summer around Australia, manufacturers need to understand their legal obligations for safety of employees working in the heat. Alan Johnson reports.

SIDE from specific or prescriptive requirements in some jurisdictions, all employers have a general duty to address problems with heat in the workplace. Industrial safety professionals say the primary means of achieving this duty of care is to undertake risk management. As a general proposition, they suggest a risk management approach be adopted in consultation with employees, looking at what are the hazards associated with working in high temperatures and what control measures can be implemented to keep the risk as low as reasonably practicable. The first step is to identify the sources of heat, by looking at the work environment, the plant used and work processes and practices. The effects of heat on the body

are influenced by environmental factors such as: Air temperature – how hot the surrounding air is. Humidity – the moisture content in the air. Air Movement – including air speed and air circulation. Radiant Heat – heat radiating from the sun, or emitted by plant, buildings, fixtures or processes. Some possible effects from exposure to hot environments include fatigue, sweating, dizziness, nausea, vomiting, slurred speech, and collapse. A risk assessment will help determine how serious a manufacturer’s heat related problems could be. Some of the risk factors that will need to be considered include the source of the heat, the nature of the work undertaken, the duration of exposure to heat, the physical condition and capability of the worker and past experience of problems arising from work in hot environments.

Legislation

The nature of the work undertaken can raise the temperature inside a building significantly.

28 OCTOBER 2014 Manufacturers’ Monthly

Under current legislative regimes there is no prescriptive ‘maximum temperature’ that employees may be exposed to. This is due to the vast array of working conditions across industries and work activities, with each Australian state having slightly different legislation. In Victoria, for example, the state’s Occupational Health and Safety Act 2004 requires employers to provide and

Air movement does not lower the actual temperature of a space, however the airflow from a powerful fan can make people feel considerably cooler.

maintain, so far as is reasonably practicable, a working environment for employees that is safe and without risks to health and safety. Health in this context includes any illness from working in heat. WorkSafe Victoria has published a Guidance Note Working in Heat which provides guidance on ‘thermal comfort’. It states that while thermal comfort is subjective, “...generally, conditions considered comfortable for people working indoors and doing light work are: air temperature (dry bulb temperature) 23 to 26degC and relative humidity 30 to 60%”. In NSW the legislation which currently applies to the issue of temperature and heat in the workplace is the Occupational Health and Safety Act 2000, however there are no prescribed temperature maximums. In Queensland, the state’s Workplace Health and Safety Act 1995 requires a risk management approach to managing thermal stress, with no prescribed temperature maximums. In WA, the Western Australian Occupational Safety and Health Regulations 1996 requires an employer to ensure that work practices are arranged so that employees are protected from extreme heat. Cooling

should be provided in a building or structure as far as practicable, to enable employees to work in a comfortable environment.

Prevention While it is not always possible to eliminate heat from a workplace, the effects can be minimised by using a number of strategies, which might include providing a short break for a cool drink in the shade; scheduling outdoor work so that it is in the cooler part of the day; installing screening across windows which let in the direct sun; through to planting trees outside the building for a longer term effect. Additional measures may include ensuring adequate drinking facilities, providing shade where possible, monitoring temperatures in the workplace, rotation of people or duties, scheduling heavy work and tasks that require the wearing of PPE for cooler times of the day, development of first aid and emergency procedures. With air conditioning rarely an option for manufacturers, due to the operating costs and the design and operation of the buildings, many companies utilise large industrial fans to keep their workers cool in manmonthly.com.au

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their warehouses and manufacturing facilities. When temperature and humidity levels rise, the body’s natural ability to cool itself decreases. However, Big Ass Fans marketing manager for Asia Pacific, Max Jamwal-Girdler explained that while air movement does not lower the actual temperature of a space, the airflow from a powerful fan can make people feel up to 12 deg C cooler. He offered five tips: COOLING BREEZES – With some of the company’s models reaching 7.3m in diameter, high-volume, lowspeed fans have the power to move air throughout the entire space, from ceiling to floor and wall to wall, including up and over obstructions such as machinery and stacked product to ensure climate conditions are consistent throughout. LOWER ENERGY COSTS – Industrial fans aren’t just for non-air conditioned facilities. By using energyefficient fans in conjunction with air conditioning, building managers can raise their air-conditioning setpoints to save up to 30% on cooling costs without compromising comfort. The same is true in the wintertime. Companies can save up to 30% on heating costs by using fans. IMPROVED AIR QUALITY – The airflow pattern of the company’s fans

All employers have a general duty to address problems with heat in the workplace.

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ensures air reaches all corners of an industrial space, maintaining consistent conditions throughout and eliminating stagnant areas where product integrity is a concern. It’s also more pleasant for employees. Janwal-Girdler said US spirits and wine company Brown-Forman learnt that the hard way. After moving three bottling lines into a refurbished warehouse that lacked air conditioning, management recognised they had a problem. With a dated building structure and a total lack of air movement, stale air encompassed the facility, and the 50 employees working in the space were less than pleased. Aware of the importance of employee comfort, Brown-Forman’s Reliability Manager, John Willis, organised the installation of six 7.3m) fans and one 6.1m fan above the bottling lines. Besides the cooling effect they have on employees, the fans sweep stagnant air away from occupants. This refreshing breeze also helps increase the perceived indoor air quality, leading to happier, more comfortable, workers. HEAT DESTRATIFICATION – As well as for summer, the massive airfoils of Big Ass Fans are also adept at moving large volumes of heated air for better circulation and more even temperatures in the winter. Air from heaters is approximately 5-7% lighter than cool air, so it tends to rise to the ceiling. In the winter, a slow-moving fan can efficiently mix huge amounts of air without generating a chilly draft. Recirculating heat trapped near the ceiling back down to occupants improves comfort and can greatly reduce heating costs. [Alan Johnson is Manufacturers’ Monthly’s former editor. He has written about all aspects of the Australian manufacturing sector for over 25 years.] Big Ass Fans 07 3292 0100 www.bigassfans.com

Rooftop fan, part of an overall solution.

Cooling analysis service WITH Australia’s warmer months on the way, many business owners and managers are looking for more knowledge on general air movement and atmosphere aspects of their businesses. Fanquip combines its large product base with a new analysis service to bridge this gap – for all industrial businesses including manufacturing, engineering and food processors. In general, the service centres on air, circulation and temperature analysis, but also drills as deeply as required into product selection, analysis for steam control, in-site internal atmosphere circulation, defrosting management or any other aspect of the business. Being Australian-owned and operated, Fanquip makes its products domestically which provides an added benefit: it can customise technologies and solutions for specific sites in just about all challenges. Every company has its own existing methods to make its workplace better; but the internal staff may lack the experience to know what duty cycles, performance parameters and other dynamics are required and they most certainly wouldn’t have the appropriate fans and are likely to make the mistake of outsourcing without any technical input. The company’s analysis encom-

passes taking detailed notes of a company’s requirements, inspection of afflicted areas and formulation of a solution which works within specific needs and budget. In an initial meeting, Fanquip analysts study and understand the respective system requirements, facilities footprint, any existing solutions and current goals. The technical experts walk the site with the client, review the existing systems capability and structure, and consider the most feature-rich, cost effective options available based on needs. Then design engineers craft a custom solution based on client short-term and long-term objectives. Fanquip technical experts select products for the system based on budget and goals that will seamlessly integrate to achieve the performance levels required. Each design will include detailed drawings, recommended products, and how they will be networked together. After designing a customised system, Fanquip reviews pricing, capabilities, return on investment and any changes needed. After requested adjustments, a final design is given to the client for approval. Fanquip www.fanquip.com.au 1800 224 308. Manufacturers’ Monthly OCTOBER 2014 29

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AdvancedMANUFACTURING Promoting global competitiveness by design A new collaborative hub aims to spread the adoption of design led innovation (DLI), a “whole-of-business” approach based on a deep understanding of customer needs. Brent Balinski reports.

HE META Design Thinking for Export & Competitiveness Hub was officially launched last month at the University of Technology, Sydney, which has partnered with META for the initiative. “Design thinking is not a new concept. It was already around in the 50s; it’s just been re-applied,” Professor Sam Bucolo, a DLI expert at UTS, told Manufacturers’ Monthly. While not new, there is undeniably a buzz around the approach. The Australian Financial Review, reporting on design thinking in April this year, suggested the concept might be “the hottest thing in business schools around the world”. And it’s something we badly need to implement in Australia, believes Bucolo. “That whole notion of you put out your shingle and make something good doesn’t stack up any more in a global environment,” he explained. The hub aims to link business to each other and researchers to help transform firms based on the concept, aimed at increasing competitiveness through strategies that will “align…

internal organisation, processes, business model and culture with their customers’ demands.” The process involves “ideating” with an empathy for what the customer wants, across every step of the value chain. User experience is massively important in design thinking, which its adherents stress is not a process or a set of prescriptions but a mindset. According to Bucolo, the idea’s time has come due to the shift in Australia’s cost structure in recent years, as well as the open economy. He said it had already been promoted and adopted successfully in Scandinavian countries, the UK and New Zealand. “Australia has been left standing, for lots of different reasons,” he said. “Our role is actually to quickly accelerate it.” The design-led innovation framework is outlined in a report, titled Design for Manufacturing Competitiveness, which was co-authored by Bucolo and Peter King of the CSIRO and released in June. The study of 14 companies, including Enware, Centor, and Rode

Present at the launch were (left to right): Nigel Spork, Centor Managing Director; Attila Brungs, UTS Vice Chancellor; Zoran Angelkovski, META Managing Director; Nicholas White, Gourmet Garden CEO; Professor Sam Bucolo. 30 OCTOBER 2014 Manufacturers’ Monthly

Microphones, identified an approach common to these globally successful manufacturers. It involved design principles applied to all aspects of what these companies do. Membership of the hub was worthwhile for the support during the difficult task of transformation, explained Nigel Spork, managing director of Centor and one of two success stories presented as case studies at the launch. “Design integration done well is something that you don’t dabble in,” Spork told Manufacturers’ Monthly. “You’re embarking on a journey into the future, and that’s a scary place. “So if you’re able to have others who are there to help you along that are there along the journey, not just to learn from others, but to learn from and share in the experience, it’s much more reassuring and it’s much more productive.” Nick White, CEO of Gourmet Gardens, agreed. “There’s not many forums where you can do that,” he said. “So hopefully with some good case studies and mentors on board, there’ll be a platform for people to engage on.”

META’s managing director Zoran Angelkovski said the philosophy of design-led innovation was consistent with his organisation’s message of promoting “business excellence across the whole of the value chain”. META has launched several collaborative hubs this year, beginning in May with a Carbon Fibre Hub, based at Deakin University, and including others themed around industries such as commercial aerospace and prefabricated housing. The Design Thinking hub was one of “more than 20” to be launched according to Angelkovski, who said he remained hopeful that META could continue to exist after December 31, when its federal government funding ends. “What we’ve been doing through these activities and many others is positioning META to be considered as part of the National Innovation Competitiveness Agenda that addresses a whole range of issues about business and business becoming globally competitive,” he said. META 03 8540 5373 meta.org.au manmonthly.com.au

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2016 to be a manufacturing ‘tipping point’: report

At the factory level, harnessing data will see real value created.

According to a study released last month by Citrix, 2016 is set to be a watershed year for manufacturing, with the industry to be ‘reinvented’ by trends in areas including automation, 3D printing and data. Brent Balinski reports.

HE annual Technology Landscape report by US-based software company Citrix analyses the impact and trajectory of technologies, predicting what the next five years might bring for people’s workplaces and lives. “A number of things are going to happen over the next few years as the industry changes,” Guy Bieber, Citrix’s Director of Strategy and Architecture told Manufacturers’ Monthly. “For instance, 3D printing in many materials and simple electronics will enable customisation and manufacturing to come closer to the point of consumption, leading to more distributed and custom manufacturing work.” Improved resolution in 3D printing, the ability to print in newer materials such as graphene, and increasing affordability (for example in energy costs and materials) will all have a huge influence. “The breakthrough moment,” said

Improved 3D Printing resolution is on the way.

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Bieber, “would be when one customised part costs the same per unit to produce as a million of the same part.” Another influence on the industry’s “reinvention” would be increasingly affordable general-purpose robotics, such as the Baxter machine. Such robots would be within the reach of smaller businesses, and would see the more basic parts of manufacturing be handed over to automated processes. “By 2016, manufacturing jobs will start to shift around more intricate work, including the training and maintaining of robots, as well as working on optimising manufacturing processes,” said Bieber. The trend towards automation is an employment concern for some in the industry, especially at the production line level. Sales for factory robots are at their highest, and in 2013 more than half of those sold worldwide were installed in this region. The International Federation of

Robotics predicts that the number of installations will only continue to rise into the future. According to Citrix, further investment in robotics won’t mean a massive reduction in employment. Bieber predicts adaptation to newer roles created by the automation trend. “While general-purpose robotics will help increase output, there will still be a significant human element,” he said. The Technology Landscape recommends ways for businesses in general to adapt to the changing landscape, which is themed in this year’s report around “Joie De Vivre”. A Software as a Service (SaaS) first approach will be useful, as will a divestment of devices and data centres and a reinvention of facilities (which were underutilised). Talent could be accessed remotely. Two other recommendations were that businesses be data-driven and “compete on experiences”. Data harnessed from machines would be captured and made useful as the Internet of Things develops. Sometimes referred to by other names such as Industry 4.0 (usually by German companies such as Bosch and Siemens), the IoT will connect over 30 billion machines in 2020 and create $1.9 trillion of added value by that time, according to tech research firm Gartner. At the factory level, harnessing data – and most importantly, making sense of and making decisions based

on it – will see real value created. Benefits highlighted before have included in predictive maintenance of machinery, supply chain visibility, and “bridging the gap” between production and those at the corporate level. “As organisations increasingly look to use IoT and create applications for it, such as how connected devices can be secured, how they will communicate, and how they will work together to do greater things, the hype around IoT will convert into real value,” said Bieber. Another recommendation, “Competing on experiences”, might sound like an empty marketing slogan to some, but Bieber explained that there are concrete examples of where it’s successful. “Ultimately if people don’t enjoy the utility of your product they will cease to purchase it or recommend it to others,” he said. “Ever since Apple demonstrated how great design could create amazing experiences through functionality rather than just aesthetics, many industries have taken notice.” Differentiating from competitors by user experiences through “disruptive innovation” to “deliver delight” might also sound like something from a TED Talk parody, but it’s already an essential part of success, argues Citrix. Citrix www.citrix.com Manufacturers’ Monthly OCTOBER 2014 31

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ProductivityIMPROVEMENT Innovate or perish Whether they like it or not, change is on the horizon for South East Melbourne’s manufacturers. According to Hartley Henderson, the businesses that will survive are the ones who are prepared to change.

HILST South East Melbourne is one of Australia’s foremost manufacturing regions with thousands of companies providing over 108,000 skilled jobs, the loss of automotive assembly will have a significant impact on the region. According to Adrian Boden, Executive Officer of South East Melbourne Manufacturers’ Alliance (SEMMA), South East Melbourne generates around 44 percent of Victoria’s manufactured product, provides 30 percent of the region’s 358,000 jobs, and more than 300 exporters are located in the region. “There is a need to develop new structure and operational business models for Australian manufacturers with a focus on productivity improvement to ensure that companies survive, grow and prosper,” he said. Assemco, located in the South East Melbourne suburb of Kilsyth, is a SEMMA member that employs some 50 people and provides assembly services, including cabins for Kenworth trucks, for clients. The company has achieved impressive productivity improvement results, particularly through the development and implementation of a unique flat-line management system where substantial responsibility is devolved to production workers. The MyKPI online self managing tool was developed by Assemco’s Managing Director, Danny Vorhauer, with a view to ensuring that the company remains viable in a challenging environment. “Once we had removed all middle management positions and embedded the MyKPI system into the company, a substantial reduction in people management costs was achieved coupled with significantly improved employee engagement,” he told Manufacturers’ Monthly. “MyKPI is a self-directing and engaging work process system that

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Assemco has achieved productivity improvements, particularly through the development and implementation of a unique flat-line management system.

In addition to providing assembly services for client companies, Assemco is now producing its own shock absorbers (branded RedRoo Shocks) for trucks and 4WD vehicles with a strong focus on export markets. According to Vorhauer, these products will compete primarily on quality and uniqueness, and are capable of delivering a 15-30 percent increase in the tyre life of trucks as well as improved ride and handling.

Vertical integration

promotes, encourages and drives cooperation, accountability and productivity improvement between staff at all levels throughout the business. “It replaces the traditional and less effective hierarchy management systems that are often heavy on employing managers to oversee and drive staff. This unique flat system has proved hugely successful with staff on average doubling their individual output of work in around 38 hours or less.” Vorhauer explains that MyKPI is based on delineation of clear work processes that are measureable (by some 450 KPIs), and that employees are trained in these processes with an emphasis on competency and the factors important to deliver core business outcomes. “Employees have defined process accountabilities and are provided with appropriate resources and delegated authority to make decisions and deliver on their part of the system, resulting in greater ownership by each employee. “A continuous improvement ethic is embedded into all work, which provides an umbrella above incremental improvement to stimulate significant

productivity gains by directly rewarding individuals and group process improvements. “Real time feedback is provided through the MyKPI online reporting system that allows each employee to access performance information and dynamically audit and steer their ef-

“

South East Melbourne currently generates around 44 percent of Victoria’s manufactured product... forts to achieve best results. Thus the system is able to respond to leading rather than lagging indicators and develop daily corrective actions in line with the demands of the business. “Ensuring fairness and accountability go hand in hand with provisions for employees to interrogate and challenge performance data to substantiate their actions/outcomes.”

SEMMA member company Maton employs around 70 people and manufactures a range of high quality acoustic and electric guitars that are recognised as one of the top brands in the world. The company has a history of vertical integration that Production & Projects Manager, Patrick Evans, says was born initially out of necessity and has been carried through as a philosophy. “One of the most important aspects of Maton’s identity is its uniqueness. For example, we have always preferred to make our own pickups and this has helped to separate us from the pack. Our competitors mostly use readily available OEM products, resulting in a ‘sameness’ across different brands,” he said. “On occasions this has been of enormous benefit, particularly in relation to the amplification of acoustic guitars. Rather than fit our guitars with the same systems as our competitors we have deliberately developed world leading systems that have put us in front of our competition.” Maton also employs vertical integration in the seasoning, storing and treatment of raw materials, especially timber, to ensure quality of tone and reliability. Evans points out that tolerances required in guitar making are much tighter than in other timber industries and that in the end, Maton’s manmonthly.com.au

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vertical integration is a crucial part of its unique identity. “A central focus at Maton is the realisation that the company must continue to evolve in order to remain competitive, and that this requires combining traditional craftsmanship with advanced manufacturing technologies. The aim is to retain quality while boosting production.” The company has invested millions of dollars in a state-of-the-art controlled atmosphere factory that features locally designed computer programs and CNC machines to precisely cut valuable rare woods from around the world. CNC machines include Biesse Rover C, SCM Routomat and Multicam. These machines have their own software that interfaces with Rhino for design, Edgecam for machining strategies and code, and Multicam Toolpath for creating machining cycles on Multicam. “We have embarked on a strong continuous M A 1 0improvement 1 4 _ 0 0 0 program _ HAR throughout our operations which is

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Maton has a history of vertical integration that was born initially out of necessity and has been carried through as a philosophy.

to half an hour by improved record delivering outstanding results. This keeping, standardising, and applying includes the application of value templates to speed up changeovers. stream mapping to identify areas “Our way of making guitars has that can be more efficient,” Evans been redeveloped by focussing on says. designing the ideal acoustic instru“CNC technology has assisted in ment and then working backwards reducing variation and ensuring that to establish the methods required to specifications are as tight as we can them. 1get 2 0 1 Also, 4 - 0CNC 9 - 1set-up 5 T 1times 4 : 5 5 : 1 achieve 0 + 1 0the : 0goal. 0 It is important that our approach to the market is quality have been reduced from one day

driven because if we focus mainly on price then we are going to lose the battle with our competitors.” [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, semigovernment and business enterprises and was National Program Director with the Productivity Promotion Council of Australia]. Assemco 03 9761 4118 www.assemco.com.au Maton 03 9896 9500 www.maton.com.au SEMMA 03 9768 2524 www.semma.com.au

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MaterialOF THE MONTH The Material of 1,000 Uses Leading the way in The Age of Plastics, Bakelite’s creation by Leo H Baekeland in 1907 was also the creation of the very first truly artificial manufacturing material. Brent Balinski reports.

AKELITE is widely recognised as the first truly artificial material that could be used to make something. As English science author Brian Clegg explains it, before Bakelite – the first widely used phenolic plastic – there were only five classes of materials available to manufacturers: stone, living matter, metal, glass and ceramics. Bakelite wasn’t the first plastic, as materials including celluloids and casein (from plants and milk respectively) were already available. The first plastic, Parkesine, was a type of celluloid, and came about in the 1850s. “It’s often stated that [Bakelite] is the first fully synthetic polymer,” the University of NSW’s Professor Robert Burford told Manufacturers’ Monthly. “In other words, before Bakelite was developed, things like celluloid and natural rubber and gutta-percha – these were all derivatives of naturally occurring polymers of one sort or another. “I think that it’s generally viewed that it’s really the first all-synthetic polymer made from small molecule raw materials.” Bakelite was invented by Leo H Baekeland, a Belgian-born chemist living in Yonkers, New York. He converted a barn into his laboratory and originally set to work with his assistant Nathaniel Thurlow on a substitute for shellac. Shellac, produced by the female lac bug and used for purposes including insulation and varnishing, was difficult and expensive to process. “He used the chemistry that was fairly well known of the reaction between phenol and formaldehyde,” explained Burford. “And he developed that to make these mouldable resins.” What Baekeland created was achieved through a combination of phenol, formaldehyde, a catalyst, and a filler (often wood flour, but other substances including asbestos, cloth

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Many believe the material’s heyday was the art deco era of the 1930s and 40s.

and paper were used to decrease the plastic’s brittleness.) “The mixture is put under pressure, and after curing at an elevated temperature, a hard plastic material forms,” Professor Qipeng Guo, personal chair (chair professorship) in polymer science and technology, Deakin University, told Manufacturers’ Monthly. Murray Paas, whose Brisbanebased company Bakelite Industries still produces the material, uses timehonoured processes for manufacturing and operates machines more than half a century old. “Bakelite powder is poured into the cavity in the die, the heat causes the powder to melt and expand to fill the cavity while the press closes with 3000psi of pressure,” he told Manufacturers’ Monthly. “The process is similar to injection moulding but is more labour intensive.” Baekeland made his famous “Heat and Pressure” patent application in 1907, though the Plastics Historical Society and others have pointed out that a patent the following year (covering three different Bakelite versions) was the recipe for a mouldable product. He made his announcement in

1909 at the American Chemical Society, formed the General Bakelite Company (later Bakelite Corporation) in 1910, and ushered in what has been called The Age of Plastics. The sealed autoclave (which he called the Bakelizer) first used to process his invention was named a National Historic Chemical Landmark in 1993, and now resides at the Smithsonian.

The Material Of 1,000 Uses Baekeland’s invention, was also produced in forms such as laminated sheets and with various different fillers, was a thermoset plastic that found usefulness in everything from telephones to radios to pipe stems to musical instruments. Marketed as the “Material of 1,000 uses”, its popularity increased rapidly. According to a few articles (though the original source is elusive), the worldwide output of phenolic plastics when Baekeland died in 1944 was 175,000 tonnes. It quickly found favour for insulation and heat resisting applications. “Electrical insulation and lighting was always a standard in Bakelite originally,” said Paas, whose com-

pany specialises in restoration. Given Bakelite’s properties, there were many other purposes where it was better than anything else available at the time. “What makes it chemically unique is its highly crosslinked network structure,” explained Guo. “As a result, Bakelite has extraordinarily high resistance—not only to electricity, but to heat and chemical action. It is thus particularly suitable for use in the electrical and automobile industries.” It was a material found in numerous parts of cars of the era and was synonymous with things like telephones and radios. Many believe the material’s heyday was the 1930s and 40s. Jewellery and other art deco memorabilia from the era is highly sought after by some collectors willing to pay top dollar.

Retro enthusiasts Bakelite still has considerable appeal for vintage collectors. Paas’s business makes products including light shades, art deco switch plates and lamp holders. He admits that he caters to a narrow market. manmonthly.com.au

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“There are far more practical products to use these days instead of Bakelite, so my business survives by providing a niche in the market,” he said. “Electrical insulation and lighting was always a standard in bakelite originally. There’s also still a strong market in Bakelite jewelry.” At the time of writing, a search of “Bakelite” brought up 1,899 matches in eBay’s Australian site, with jewellery items in good condition asking as much as $3,000-plus. Items that have survived and retained a good condition are not cheap. Norma Hawley, owner of Vintage Online, explained the price collectors are willing to pay. “Authentic pieces are difficult to track and expensive when found,” she told Manufacturers’ Monthly. “Although still used to produce items today mainly in China, India and Hong Kong, it is usually for the production of things like dominoes and chess pieces, etc.” Those who want to tell the real thing from “fakelite” can do so in ways including rubbing the item firmly until it warms up; it’ll give off a faint whiff of formaldehyde. “[Also,] generally speaking if something has been around for 70 years there will be at least some signs of wear,” pointed out Hawley.

Still kicking around Though its popularity peaked long ago, Bakelite still sees some demand, and not just from hobbyists. “Thermosets are becoming less used because there’s far better materials now for mechanical applications,” Brett

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Hayes, business and product development manager from Stug Australia, told Manufacturers’ Monthly. Guo pointed out that it’s still used for, “Wire insulation, brake pads and related automotive components, and industrial electrical-related applications.” However, other plastics have replaced it in these applications including other thermosets, such as epoxy resins and engineering thermoplastics, such as polyimides. The thermoset nature of the material means that it can’t be recycled: not the best match for times that are more environmentally-conscious than the first half of the 20th century. “Nowadays if you’re wanting a rigid material with insulating properties you probably go for something like acetyl resin or glass-filled nylon or something like that,” suggested Burford. “Which is able to be extruded, moulded, in a different way, still have the stability, and can be recycled.” Paas said he has only witnessed one other Australian company that made Bakelite products: Alvey Reels. Hayes said the name Bakelite is “still kicking around,” with a lot of the older engineers he deals with, and it is referred to in older manuals. “People are still requiring Bakelite from a compliance point of view or from an engineering certificate point of view,” he said. “Yes, they’re still manufacturing it. But if it’s not needed, we’ll generally just go through and identify the failure modes and make a recommendation for a more user-friendly, more cost-effective grade of thermoplastic.”

When first introduced, Bakelite was a completely new type of material. manmonthly.com.au

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Sensors& ANALYSERS A round-up of the latest products to boost productivity New sensor and analyser systems entering the market feature enhanced mobile capabilities and visualisation of machine functions – both of which make the plant operator more efficient. Remote access and user selectable software features are other key trends in this sector. Here is a selection of sensor and analyser products that have been recently released – from a vibration transmitter that prevents unscheduled downtime to a laser shaft alignment tool delivers precise shaft condition measurements.

Vibration transmitter helps prevent downtime

The field-configurable CSI 9360 delivers realtime information.

EMERSON Process Management’s CSI 9360 vibration/ position transmitter offers manufacturers an economical solution for extending basic protection to compressor, pump and fan assets. Developed using OEM-supplied specifications, the transmitter detects emerging sleeve bearing issues by capturing vibration or position data and translating it into a 4-20mA signal for monitoring. This advanced warning allows customers to shut down these assets before significant equipment damage occurs or production is impacted. The CSI 9360 eliminates the need for multiple types of transmitters. It can be field-configured for three radial vibration ranges or position with invertible position signal, selectable sensor loop response times and optional sensor fault lock out

times. While most transmitters standardise on 5mm sensors, the CSI 9360 supports multiple eddy current sensor sizes. The CSI 9360 provides users with information for critical operational decisionmaking. To verify radial vibration or axial thrust movement measurements, the CSI 9360 can be used to perform 2oo3 sensor voting on high-speed shafts as small as 16 mm in diameter. The transmitter has flexible options for accessing data, making it easier to take corrective action. For data collection and analysis, the buffered output can be accessed through an SMB connection by a portable analyzer such as the CSI 2140. Emerson Process Management 03 9721 0200 www.emersonprocess.com

Monitor sensors via mobile phone network WITH the TC Mobile remote signaling and remote control system, users can monitor digital and analog inputs cost-efficiently and securely via the mobile phone network. In addition to the four digital inputs, two analog inputs are now also available for the level sensor, pressure sensor, gas sensor or brightness sensor values. What’s special about this is the fact that the inputs can be used not only for a 0 to 20 mA signal, but also for voltage measurement up to 60 V. If ever the measured value deviates from the reference value, an alarm is generated via SMS, e-mail or GPRS. With a large voltage range from 10 to 60 V DC or 93 to 250 V AC, the compact signaling system is versatile, particularly when used in buildings and harsh industrial environments. Phoenix Contact 1300 786 411 www.phoenixcontact.com.au 36 OCTOBER 2014 Manufacturers’ Monthly

The system can be used in harsh industrial environments.

The results screen shows both coupling results and feet corrections.

Laser shaft alignment tool SHAFT misalignment in rotating machinery has the potential to cost companies thousands of dollars a year in replacement bearing cost, repairs, extra power consumption and unplanned downtime. In three steps, the Fluke 830 Laser Shaft Alignment Tool delivers precise shaft condition measurements and actionable results that, along with vibration testing, infrared thermography, and other predictive maintenance measurements. Shaft misalignments as small 0.06 mm can cause failures of seals, couplings, and bearings as well as increase motor vibration and heat. Traditional alignment methods, like straightedges/feeler gauges, are too imprecise to measure small yet significant shaft offsets. Dial indicators provide higher resolution, but are complex, time consuming, and require highly skilled technicians. The guided user interface of the 830 provides results that do not require extensive alignment knowledge. Its all-inone results screen shows both coupling results and feet corrections (vertical and horizontal) in real terms making it easy for maintenance technicians to take corrective action. Fluke Australia 02 8850 3333 www.fluke.com.au manmonthly.com.au

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Overmolded splitter encapsulates LEDs

Graphics can be shown with a depth of up to 256 colours.

BasicDisplay XL THE BasicDisplay XL for mobile applications allows visualisation of machine functions and important system messages. The unit features a CAN interface for various communication tasks. Protected by a continuous membrane. the display, which can be read in sunlight and provides a resolution of 480 x 272 pixels with an aspect ratio of 16:9. Graphics, can be shown with a colour depth of up to 256 colours. The integrated 32-bit processor and the electronics developed for the applications

are suited to the application area in mobile machines. A status LED indicates the current operating status of the display. Free programming and the simple design of the visualisation pages with CODESYS to IEC61131 enable use in many different applications. A watchdog is integrated. With the master functionality of the CANopen protocol, networks can be built via decentralised input/ output modules. ifm efector 1300 365 088 www.ifm.com/au

Ultrasonic thickness gauge THE Cygnus 1 Intrinsically Safe is a rugged, shock-proof multiple echo ultrasonic surface thickness gauge designed for safely measuring metal thickness to determine wastage or corrosion in potentially explosive environments. By using multiple echo technology the metal thickness gauge measurements are error checked using 3 return echoes to provide repeatable, reliable results. Russell Fraser Sales 02 9545 4433 www.rfsales.com.au manmonthly.com.au

Measurements are error checked using 3 return echoes.

TURCK has released a redesigned VB2 splitter with LEDs. The new VB2 features a translucent black overmolded design, which encapsulates the LEDs and protects them from physical damage while also complementing visibility. The design enhancement also enables the LEDs to be visible from both sides of the splitter, allowing it to now be mounted on either side where the previous version only allowed mounting on one side for the LEDs to be visible. This VB2 splitter is used to consolidate two separate discrete PNP device signals into a single cable and can be used in any application multiple discrete PNP signals are being used. It is an ideal solution for applications trying to use multiple sensors or send multiple signals from a confined area. The LEDs provide a visual indication of when the circuit has power applied and when discrete signals are present.

The splitter has an improved ingress rating of IP68. The VB2 has a rating of 10-30 VDC at up to 4 amps. The overmolded design provides the splitter with an improved ingress rating of IP68. Products that are given an IP68 rating must first pass TURCK testing which requires them to be submerged at a depth of 1.8m for 24 hours. TURCK Australia 1300 132 566 www.turck.com.au

Particle size and shape analyser MEP Instruments has introduced an enhanced version of the CAMSIZER system for the determination of particle size and particle shape using dynamic image analysis. Based on the dual camera technology, the CAMSIZER P4 particle size and shape analyser offers improved performance and extended functionalities. Key enhancements include faster cameras with higher resolution, stronger light source and new software features, resulting in faster measurements and an extended measuring The CAMSIZER P4 features revised hardware and range. The improved resolution allows software. more precise measurements of particle morphology. New shape parameters for size and particle shape (20Îźm-30mm), roundness and sphericity allow for optiparticularly of small particles. mised shape characterisation. The analyser features revised hardware Functions such as the certified calibraand software. The improved software tion standard, the automated air flow in offers additional evaluation possibilities, the measurement zone, and the motorsuch as separate storage of all particle ised funnel height adjustment have been images in a database or three-dimensional retained in the analyser. display of measurement results as scatter plots (3D cloud). MEP Instruments The 3D display of measurement param02 9878 6900 eters enables easy evaluation of particle www.mep.net.au Manufacturersâ&#x20AC;&#x2122; Monthly OCTOBER 2014 37

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ManufacturingSUSTAINABILITY Understanding sustainable manufacturing Australian manufacturers planning a long term future must go down the sustainable manufacturing path, if they are going to survive. Alan Johnson reports.

HE truth is, many manufacturers, as soon as they hear the term ‘sustainable manufacturing’, switch off, believing it will only cost them money, and the only benefit will be a warm and fuzzy feeling that they are doing something for the environment. However, according to the leader of CSIRO’s Sustainable Manufacturing, Future Manufacturing Flagship, Sarah King, that is completely false. “Manufacturers who think sustainable manufacturing just adds cost to the production process, are looking at it the wrong way,” she told Manufacturers’ Monthly. King said part of the problem is the term, sustainable manufacturing. “There are a confusing number of definitions out there but for me sustainable manufacturing is simply about being economically sound, and environmentally and socially responsible. “The reason there are so many definitions is because it is so variable, depending on a manufacturers operating environment. So it is very important companies define sustainable manufacturing for themselves. To start with, King said not enough companies are looking closely at their waste streams and their utility bills. “Too many manufacturers take them for granted. Instead companies should look for opportunities to replace them, and that’s where innovation can come in. “Sustainable manufacturing is all about being resource efficient, and that can be about reducing costs, 38 OCTOBER 2014 Manufacturers’ Monthly

Companies are advised to start their sustainable journey by looking closely at their waste streams. which can be about reducing the amount of materials from an input perspective or reducing the cost in terms of disposal costs. “Companies should look at adding value to their waste streams. One of CSIRO’s latest projects, Aspire, looks at how we can connect companies to look at recycling and remanufacturing opportunities as opposed to sending stuff to landfill, and paying for it. Already we have seen successful outcomes where companies, rather than sending material to landfill, they are separating it, compiling it properly, then sent to another company for reprocessing. That changes from a cost to revenue or neutral. “Companies should also contact the various sustainable manufacturing networks out there, as well as their local council groups who do some fantastic work. “One that is doing some great things is the Victorian Centre for Sustainable Chemical Manufacture and is looking to break down barriers between researchers and industry. King said one of the advantages of

going on the sustainable manufacturing journey includes reducing costs. “For if you are using fewer resources and you have less waste, it’s going to cost you less. Then if you make a more sustainable product, you can differentiate yourself from your opposition, and if you are environmentally benign you have fewer risks “There are only upsides to companies wanting to understand how sustainable manufacturing can apply to them.”

Competitiveness The CEO of Siemens Australia and NZ, Jeff Connolly said ultimately sustainability is about competitiveness. “Australian companies need to rethink sustainability. For too long it’s been associated only with ‘environment’ but its true measure is a combination of economic, environment and social, which is how the DJSI measures it,” he said. “Apart from being sustainable ourselves, our technology is designed to help other companies become sustainable by improving areas

such as productivity, reliability and efficiencies. This usually has the added benefit of being good for the environment and for the communities in which we work.” Connolly believes that with the pace of change, it’s important that Australian companies take action to secure their competitiveness and position in a world market. That means a constant review of technology that can improve their performance. “Being in business today is like being in a formula 1 race – if you’re not looking ahead and investing in the latest technology every year then next year you won’t be in the race,” Connolly said. Siemens AG has again been ranked number one in industrial sustainability by the Dow Jones Sustainability Index. The Swiss investment company RobecoSAM compiles the internationally renowned Dow Jones Sustainability Index (DJSI) each year. In this year’s DJSI, Siemens ranked first in the Capital Goods Industry Group, which includes about 350 companies from seven sectors. manmonthly.com.au

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TY Roland Busch, a member of Siemens AG’s Managing Board, with special responsibility for sustainability, is convinced that sustainability is crucial for Siemens AG’s long-term economic success. “For this reason, achieving this recognition again makes us very proud, and confirms the strong emphasis we place on sustainability,” Busch said.

It’s a vital journey The Dean of UTS (University of Technology – Sydney) Business School, Professor Roy Green, says it’s vitally important for Australian manufacturers to go on the sustainable manufacturing journey for their long-term future. “For me sustainable manufacturing is made up of two interdependent parts, by applying energy efficiency and reuse concepts to the manufacturing process you also contribute to its long term viability.” Green admits sustainable manufacturing does normally require some investment, as any change and improvement to a company’s competitiveness does. “Investment is always a risk, but I have found that if the investment is properly calibrated to the nature of the business, especially in high cost countries where companies can’t compete on cost but have to compete on quality, design and innovation, the investment does pay off. “We are now seeing around the world a growth of ‘micro-multi-national’ companies. They are SMEs that export, often most of their product, and who participate in global value chains, which might include services as well. “We estimate we have over 1500 of these companies in Australia, but are far more prominent in Europe and in the US,” he said. Green admits the environmental awareness of a product is not as strong in Australia as in Europe and Japan. “Over decades they understand the relationship between energy efficiency and the efficiency of the economy as a whole. With each energy crisis, which has pushed the prices of energy and raw materials manmonthly.com.au

Sustainable manufacturing is a critical part of doing business at Armstrong World Industries.

for companies, European and Japanese companies have had to do more with less and in the process have become more efficient economies and have been able to out manoeuvre the competition.” For manufacturers looking to build a competitive business long term, Green said sustainable manufacturing should be an important component of their investment portfolio. “Because if you don’t do it, you will go the way of the gas guzzler in the US, which was a very clear example of industries that did not pay much attention to what was going on in this context and have paid the price there,” Green said. “They were clearly out manoeuvred by those companies in those parts of the world who understood sustainable manufacturing, which was called a sensible investment

“

A lot of manufacturers switch off when they hear ‘sustainable manufacturing’… strategy at the time in the context of a high cost economy. According to Green, it’s a matter of being able to more with less. “That’s where energy efficiencies, reuse, recycling all become dramatically more significant when developing a long term, viable business model.” Green suggested the first step manufacturers should take, the low hanging fruit, is to reduce their reliance on high cost energy.

“This is also a decision for society in terms of the generation of electricity. What kind of sources of power can we develop that are not entirely related to fossil fuels? Can we develop a renewable energy industry? “In fact, sustainable manufacturing can also mean manufacturing new products for the renewable energy sector, which will become more important as a component on energy production as it is around the world. “For example, the Chinese government is about to close down the fossil fuel power stations around Beijing and Shanghai to stop pollution, and are moving to renewable energy. This process is unstoppable and will eventually impact on our resources industry,” Green warned. Regarding progressing on the sustainable manufacturing journey, Green advised manufacturers to look closely at their fuel bills, the use of energy and raw materials in the production process and to use standard methods such as Lean Manufacturing to ensure they are working smarter not just harder. “Manufacturers should ensure they are not just competing on cost but on innovation, design and quality, and making as much use of waste materials as possible, with additive manufacturing a good example of that, because there is almost no waste in the process,” he said.

Plastics industry The plastics industry, once described as environmental vandals (and still is by some), has cleaned up its act in recent years. According to Simon Whitely, CEO and MD of Melbourne-based Corex Plastics, the plastics industry is at a similar stage to where the paper and cardboard industry was in the late 80s and early 90s, where recycling might have had a bad reputation early on. “But now filtration technology and the ability to maintain the highest level of polymer quality has caught up, and has given us the opportunity to substitute recycled material for origin without any detriment to the quality of the product produced,” Whitely told Manufacturers’ Monthly. Manufacturers’ Monthly OCTOBER 2014 39

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Manufacturing SUSTAINABILITY Corex Plastics, a 100% owned private company established in 1985, is amongst the world leaders in its field of plastic sheet extrusion, innovative re-useable and recyclable packaging, fabrication and design, as well as the recycling of polymers, with around 120 employees. “For me, sustainable manufacturing, and the idea of not leaving a footprint, is very important. For us in the plastics industry, one aspect of sustainable manufacturing is looking how we can maximise the value of the resin that is used in the plant,” Whitely said. “Our view now is that we don’t sell an end use product, we sell the use of the resin with the view that we will be able to recover it and then reuse it in another application, whether it’s the same customer or a different product group within our business. So we take a holistic view of the polymer, where we retrieve it back and recover it at the highest possible yield to substitute for the virgin polymer. “To make this practice work, I set up a new division in the business to interact with the customer side. So we sell the product, which we have done traditionally for the past 30 years, what we do now is also recover the product from our same customers, which is often complex because often our product is sold through distribution networks and the like, but now we diversified our source material in order to produce products that can be substituted with products that would have previously been from virgin material. “While cost savings comes into the equation, recycling also gives us security of supply and stable prices for our customers. “What hasn’t been highlighted has been the energy savings by recycling polymers. By using recycled polymers there is something like an 80% reduction in energy usage compared with a virgin polymer. That’s why our recovery program is so high.” Whitely is a supporter of the three Ps concept; People, Planet and Profit and says there are three elements to every decision a person makes in a business. “You should make a decision on one without being detrimental to the 40 OCTOBER 2014 Manufacturers’ Monthly

The Steel Stewardship Scheme, developed for Australia, applies across the entire steel supply chain. other two. For example, it’s easier to flush things down the drain, which is good for profit and people, but not good for the planet. “It’s about having a different lens through which you can look at a business. “At the same time, you don’t want to just go for the planet, as some companies do; you have to make a profit out of your investments, but not to the detriment to the environment or your people.” While a supporter of the three Ps concept, Whitely says it’s important to be open to new ideas and being able to pick the pieces that suit your business, and produce a better outcome for your business. Being a disciple to just one idea is not sustainable in itself.

working to reduce the amount of power we use, plus reduce the emissions and the amount of CO2 coming out of our stack. We also want to reduce the amount of material that goes into landfill and be more efficient. We want to do all that for our business and be a good corporate citizen too,” he told Manufacturers’ Monthly.

“

The plastics industry, once described as environmental vandals, has cleaned up its act in recent years…

PVC flooring Rob McLorinan, National Sales Manager Australia/NZ with Armstrong World Industries says sustainable manufacturing has been critical to what the multi-national flooring manufacturer has done for a number of years. “In our industry, being environmentally aware is almost the norm now, and has always been in our KPIs. For McLorinan, sustainable manufacturing covers a wide range of areas. “From our perspective, we are

While McLorinan admits the industry had received some unwarranted negative publicity around PVC materials, he says that after working closely with the Green Building Council of Australia, the Council now encourages the use of PVC that is manufactured using best practice guidelines. “And that’s exactly what we do here at Armstrong.” He explained that Armstrong is the largest producer of resilient vinyl

flooring in the world and the only Australian manufacturer of these products. For McLorinan sustainable manufacturing at Armstrong is a critical part of doing business. “It’s about minimising waste and operating with the least impact on the environment as possible. And if you take that a step further, we believe that product stewardship is being responsible for your material right through its lifecycle,” he said. “We are looking to develop programs to reuse old PVC floors. So when companies are ripping up a building in 20 years’ time for example, we are looking at ways to reuse that material, and reduce the amount of raw materials we use even more.” He explained that PVC flooring rarely wears out; in most cases it just gets replaced because the building gets refitted or the owner wants a change of colours. McLorinan believes product stewardship is going to be the norm in a few years’ time. He warns companies that if they are not in the position now of being as efficient and sustainable as possible, they need to be at some time, if they want to exist. “It makes business sense and is the right thing to do,” he said.

Steel industry Arrium Mining and Materials’ Corpomanmonthly.com.au

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rate Manager Environmental Sustainability, Phillip Ridgeway, also believes more companies should go down the sustainable manufacturing path. “Australian manufacturers should be looking at their resource and energy inputs, and investigating cost effective ways to reduce costs. “A lot of companies are already doing that, but wouldn’t recognise that as being sustainable. Ridgeway said it’s important to define sustainable manufacturing. “It’s a very loose term. For me, sustainable manufacturing is all about being responsible with how you produce your product, and defining it to your business,” he said. “I’m seeing more and more investors wanting you to be doing the right thing, so access to funds is important; banks and so forth are wanting companies to operate responsible. Also end users.” Ridgeway is heavily involved with the Steel Stewardship Forum (SSF), a body formed to develop the steel stewardship scheme for Australia and across the entire steel supply chain. The concept of the Forum is to bring together all major sectors of the steel product life cycle – from mining through to steel manufacturing, processing, product fabrication, use and re-use, and recycling – in the shared responsibility of working together to optimise the steel product life cycle using sustainability principles including minimising the impact on society and the environment. The SSF believe that collectively we can continue to add value to and improve the performance of the steel industry across the whole product MA 0 4 1 4 _ 0 0 0 _ P R I life cycle – thereby reducing negative

social responsibility,” Ridgeway said. commercial, social and environmen“They are interested to see that tal impacts. people are extracting minerals safely, Key purposes of the Forum are to and that they are not using child maximise the value of steel to society labour, for example, that they are whilst minimising negative comcomplying with the law, and their mercial, social and environmental operating plant with good environimpacts across the life cycle, ensure mental controls. policy makers, govRidgeway said ernments and the there is strong growpublic generally are ing demand for aware of the value this information, of steel, and to mainly driven by unite key stakeconsumers and end holders along users. While he the steel product admitted there life cycle are still chain people within a out there strucwho tured simply forum. buy on SSF cost, he is also said there workis a growing as a ing number hub, linking of people who information, are very interested knowledge, leadin where a product ing practice and comes from because their reputation activity in the areas of environmenis on the line. tal improvement and sustainability “Responsible sourcing is very across the steel life cycle. strong in the US and Europe, and Ridgeway is also heavily involved we can see a growing awareness in in SSF’s sustainability certification Australia in the general community,” scheme, called ‘Responsible Steel’, Ridgeway said. which will eventually provide certifiHe explained that the Responsication of compliance with nominated ble Steel scheme covers everything sustainability criteria for all sectors from mining the minerals out of the of the steel supply chain, and will ground, to what goes into a steel cover the full life cycle of steel. works to producing the raw steel, “Today far more people are interthrough to fabrication and how the ested in supply chains, where materiproduct is used in the market. als are sourced from, and whether “It’s primarily designed for the they have been sourced appropriate1 2 0 1 4 - 0 3 - 0 5 T1 6 : 1 8 : 0 2 + 1 1 : 0 0 building and construction industry ly, and not just a few indicators about

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to start with. This area, the green credentials of a building is growing very fast, and has been for a number of years. The Green Star program is just one, with Tier one companies very interested in a company’s greenhouse footprint and other environmental credentials.” Ridgeway said the scheme is open to steel importers as well as local companies. “It differentiates the companies who do the right thing, and those who don’t.” The SSF aims to have a pilot scheme introduced initially for mining and steel manufacturing, then to be fully expanded across the steel value chain within five years. The first step towards this goal has been completed with the development of an extensive pre-feasibility business case for Responsible Steel. The Forum has decided to progress to the next stage of the project, the Detailed Design Phase, using mining and steelmaking as an initial internal pilot. It is anticipated this second phase will take between 12 and 18 months to complete and will lead to the next key decision point for the SSF on progression to implementation of the scheme through a live pilot which can then be expanded.

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Manufacturers’ Monthly OCTOBER 2014 41

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Fasteners& ADHESIVES The best of both worlds Manufacturers should be always on the lookout for processes and products that help them work more efficiently. Matt McDonald reports on a hybrid adhesive that promises to help them reach beyond their conventional approaches.

ENKEL Australia has introduced a new hybrid adhesive which has been developed to combine the high speed of an instant adhesive with the bonding strength of a structural adhesive. Loctite 4090 delivers temperature resistance up to 150°C, high impact and vibration resistance, high moisture resistance, and gap filling up to 2 mm. In addition, it is well-suited to a variety of substrates, including metals, most plastics and rubbers. “This is brand new technology to Henkel,” Michael Hajj, Technical Manager – Adhesive Technologies at Henkel Australia told Manufacturers’ Monthly. “It’s patented technology and it is a world first.” “It greatly expands the capability of what the traditional instant adhesives, the cynoacolytes are. It’s combining the benefits of those with the benefits of a structural bonder.”

Applications Loctite products provide solutions across the whole spectrum of adhesive technologies and manufacturing processes. They are used in markets as diverse as electronics, automotive, aerospace, biomedical and many manufacturing industries. Loctite 4090 will find applications within those markets but the thing about it, according to Hajj, is that it promises to change how manufacturers work. “This is brand new technology so this is where we need to start now, going out to our customers and trying to develop the applications with this new product,” Hajj said. In other words, manufacturers will need to work at how to maximise the benefits of the added moisture resistance, the better gap filling properties, the high vibration resistance and so forth. “It will come down to educating our customers on what it can do…and changing the way they design their parts as well,” Hajj said. “It has been designed to reach beyond the conventional industry approaches.” That can only be good news for an industry that is going through tough times and facing global competition. The combination of speed and strength that Loctite 4090 offers promises to bring sought after cost and efficiency benefits. Now the ball is in their court. They need to take advantage of the product’s speed and strength and make it work for businesses.

Innovation The adhesive is available as a 50 ml cartridge in a carton with 5 mix nozzles. 42 OCTOBER 2014 Manufacturers’ Monthly

When asked about the future developments in the adhesive market, Hajj

Loctite 4090 should be dispensed with the standard Loctite® 50 ml Dual Cartridge Manual Applicator. maintained that there will be further innovations in the years ahead and this targetted investment will continue to meet the future needs of the manufacturing industry. “If you said to me five years ago that we would have a hybrid adhesive doing a cyanoacrylate and epoxy role, I wouldn’t have expected that.” So there is still the potential for future surprises. “The one thing that Henkel and the Loctite brand do is continue to invest in innovation to try and overcome the challenges we’re going to have in the future. In terms of new market, different applications, the pressures of manufacturing,” he said. He nominated a number of areas of focus for Henkel, including the requirement to make environmentally friendly products, the development of adhesives that cure faster, and those that cure at a lower temperature. “These are all the things that as an innovative company we are constantly evaluating and investing R&D resource into,” he added. Or as Henkel CEO Kasper Rorsted puts it – “Innovations are of strategic significance for Henkel because they provide the basis of our future business success. Already today, around

one third of our sales revenue is generated from newly developed products that have been in the marketplace for less than three years.” The company was founded in Germany in 1876. When, in 1923, a supply shortage in glue threatened to hamper the labelling of Henkel products, the company began manufacturing its own, and therefore – rather by accident – became an adhesives producer. Today, Henkel Adhesive and Technologies serves the transportation, electronics, aerospace, metal, durable goods, consumer goods, maintenance and repair and packaging industries. It has a portfolio of International, regional and local brands. The Loctite brand, part of the Henkel portfolio since 1997, offers adhesives and sealants used in many of the machines and products that are at the core of everyday life. They are used in markets as diverse as electronics, automotive, aerospace, biomedical and many manufacturing industries. [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] Henkel Australia 1300 813 440 www.loctite.com.au manmonthly.com.au

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Solenoid interlock for universal application CONTROL Logic presents the Schmersal AZM 300 solenoid interlock featuring an innovative interlocking system in the form of a Maltese cross. Significantly different from other switchgear offered on the market, the new interlock can be actuated from three sides, allowing for universal application possibilities. A major advantage of the solenoid interlock is that the user does not need any additional add-on parts such as a door stop or a latching element, since these functions have been integrated in the interlock. The adjustable latching force, i.e. the non-safety-related interlocking function when the safety guard is unlocked, allows the interlocking system to be smoothly adjusted to suit individual requirements. Apart from the unique mechanical construction, the solenoid interlock also offers innovative electronics including an integrated RFID sensor that detects the identification and coding of the actuator, enabling the user to choose three different types of coding. In the basic version, the sensor accepts any suitable target. A second coded version only reacts onto an individually assigned target with the teaching procedure repeated an arbitrary number of times. The third variant only accepts the target that was taught upon the first activation. The solenoid interlocks meet the requirements of Cat 4, Performance Level e or Safety Integrity Level 3. The IP 69K rating makes the interlock suitable for use in hygiene-sensitive areas.

MA 0 7 1 4 _ 0 0 0 _ L O R 1 2 0 1 4 - 0 6 - 0 5 T0 9 : 1 2 : 4 5 + 1 0 : 0 0 Additional add-on parts such as a door stop or a latching element are not needed.

manmonthly.com.au

Control Logic 1300 374 073 www.control-logic.com.au

Manufacturersâ&#x20AC;&#x2122; Monthly OCTOBER 2014 43

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Fasteners & ADHESIVES Structural adhesive for composites and metals SCOTT Bader is launching Crestabond M1-04, a rapid bonding 10:1 ratio primer-less methacrylate structural adhesive, with a fixture time of only 8-10 minutes. The company adds that this new rapid bond grade offers assemblers a reduction of over 40% in the maximum fixture time when compared to the existing Crestabond M1-05 grade, with no loss of bonding performance properties. The new adhesive is suitable for composites. The adhesive is the latest addition to the range of 10:1 and 1:1 ratio structural adhesives, developed to significantly increase production efficiencies for high volume parts assembly. M1-04 is now the fastest curing grade available in the range, with a working time of only 3-4 minutes. With no requirement for a substrate primer, this short working time and rapid fixing time enables assembled components bonded together with the adhesive, to be moved to the next stage in a production assembly line in as little as 8 minutes. As such, this new â&#x20AC;&#x2DC;rapid bondâ&#x20AC;&#x2122; Crestabond M1-04 grade is expected to be of particular interest to automotive, recreational vehicle and land transport OEMs, as well as tier one and tier two suppliers due to its improved productivity benefits combined with its high elongation, toughness and reliable

The adhesive has a fixture time of 8-10 minutes.

The adhesive exhibits the same performance properties and attributes as the rest of the M1 range, such as good fatigue, toughness and impact resistance, good gap filling capability, as well as the need for only minimal substrate surface preparation due to the unique primerless MMA bonding technology. All Crestabond grades, including M1-04, will effectively bond composites, plastics, ABS, aluminium, stainless steel, ABS, acrylic, polycarbonate and other substrates commonly used in industrial applications. According to test data, Crestabond M1-04 can be used as an adhesive and gap filler up to 15mm, exhibiting good mechanical performance properties, with 70% tensile elongation and a tensile strength of 14-17MPa. Key markets and applications for Crestabond adhesives include: building and construction for doors, windows and cladding; wind energy blades, housings and nacelles; marine for all types of craft; land transportation for buses, coaches, trains and trucks; recreational vehicles, motor homes and caravans; agricultural vehicles such as tractors, diggers and combine harvesters.

long-term adhesion performance; 400 ml cartridge samples of the new M1-04 grade are available for customer trials.

Avlo Australia 1300 245 025 www.avlo.com.au

Spray-Lock adhesives

Multi-purpose industrial adhesives

ALLPLASTICS Engineering introduces Spray-Lock FRP spray adhesives for wall applications in commercial and residential environments. Using 60% less adhesive than traditional trowel-on adhesives, the adhesive enhances productivity with a faster application rate, The watersaving time and money. based Key benefits of the adhesives include timeacrylic saving application, instant grab properties, no blend spray offensive odours, water-based formulation, no adhesive requirement for trowelling, and non-flammable formulation substance. provides Spray-Lock FRP adhesive adheres immediate approved wall coverings and materials onto shear properly prepared smooth substrates such strength as plasterboard, cement sheet, Scyon sheet, during timber, MDF, ceramic tiles, metal, FRP, installation. concrete and glass among others. The adhesives can be used for adhering acrylic sheets, polycarbonate sheets, PETG, MDF, timber, metal, Alucobond, rigid or foam styrene, rigid or foam PVC, Rowlux illusion film, and Korogard high impact wall protection. The water-based acrylic blend spray adhesive formulation provides immediate shear strength during installation. Being solvent-free, Spray-Lock FRP adhesive does not emit harmful fumes and has zero VOC content. The adhesive also uses a safe non ozone depleting HFC propellant. Spray-Lock FRP spray adhesive comes in easy-to-use aerosol cans.

ALLPLASTICS Engineering presents a new adhesive system suitable for bonding a wide range of plastics, elastomers and rubber. Featuring K+S multipurpose adhesive/ Magnumbond for bonding with difficult-to-adhere plastics, the K+S Polyolefin Adhesive Set is suitable for polyethylene, polypropylene, most polyolefins and most elastomers, PTFE, EPDM rubber and difficult-toadhere plastics, and silicone rubber. The adhesive kit includes Magnumbond 20g; K+S rapid accelerator 10ml; These adhesives are suitable for bonding wood, metal, plastics K+S polyolefin primer 10ml; and more. nozzle to suit bottles; and instruction manual/datasheets. These adhesives are suitable for bonding wood, metal, plastics, rubber, pottery, glass and porcelain.

44 OCTOBER 2014 Manufacturersâ&#x20AC;&#x2122; Monthly

Allplastics Engineering 1300 283 088 www.allplastics.com.au manmonthly.com.au

MA1014_000_HEN

2014-09-15T14:58:21+10:00

Speed + Strength LOCTITE® 4090 Hybrid Adhesive This innovative adhesive combines the speed of an instant adhesive with the strength of a structural adhesive. LOCTITE® 4090 delivers both performance & versatility to solve your design & assembly challenges. • Strength of a structural adhesive • Speed of an instant adhesive* • Temperature resistance up to 150°C • Gap filling up to at least 2mm • Suitable for a variety of substrates, including metals, most plastics & rubbers*

For more information, please visit www.loctite.com.au or Technical Hotline 1300 885 556.

loctite4090-print-ad-FP_Jul14.indd 1

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3DPRINTING New UV-resistant thermoplastic

TRATASYS a leading global provider of 3D printing and additive manufacturing solutions, has announced availability of a new thermoplastic material option for its FDM-based production 3D printers: ASA (Acrylonitrile Styrene Acrylate). ASA is an all-purpose material used for the production of prototypes, manufacturing tools and finished goods. Manufacturers in the automotive, electronics, commercial, sporting goods and construction industries can benefit from ASA’s UV stability, strength and durability. Applications include jigs and fixtures, electrical boxes, recreational vehicles and outdoor tools. Compatible with the Fortus 360mc, 400mc and 900mc 3D Production Systems, ASA thermoplastic surpasses the capabilities of ABS, offering UV resistance, so parts will resist fading and remain durable with long-term exposure to direct sunlight. ASA offers an exceptional surface finish and has the best aesthetics of any FDM material available. Compared to ABS, details such as printed text and other features

The technology involves fusing layers of metal powder. Applications include jigs and fixtures plus electrical boxes.

are greatly improved by ASA’s matte finish. “As 3D printing becomes a more mainstream production process, and parts are used for a longer period of time and in diverse environments, UV resistance becomes a must-have feature,” explained Brendan Dillon, product manager for Stratasys. “Once customers use ASA, they may not go back to ABS.” Easy to use, ASA is a “green-flag” material allowing Stratasys Insight software users the ability to produce

parts using default settings with a single click. Available in black and ivory, ASA is compatible with existing Stratasys SR-30 support material and priced similar to ABS. Additional information about ASA including images, a brochure and material data sheet are available by visiting the newsroom on Stratasys’ website. Stratasys 1300 559 454 www.stratasys.com

Additive manufactured solar cells get closer to commercial reality THE CSIRO has said that printable solar cells are near to being commercialised, with several firms interested in bringing the technology to market. The CSIRO is part of a group of researchers – also including those from Monash University and the University of Melbourne – and companies – including Robert Bosch, BlueScope Steel and Innovia – going by the name of Victorian Organic Solar Cell Consortium (VICOSC). It has received support through the Victorian government and the federal Australian Renewable Energy Agency. The project has been running since 2007, and the ABC reports that its work is nearly at the commercialisation stage. “We would like to improve the efficiency of solar panels we need to develop solar inks to generate more energy from sunlight,” Dr Fiona Scholes, a senior research scientist at the CSIRO, told the ABC. “We are confident we can push the technology further in the years to come.” The process developed involves a modified conventional printer that can lay out semiconducting inks onto any plastic surface (or steel).

46 OCTOBER 2014 Manufacturers’ Monthly

The project has been running since 2007. According to the CSIRO, production at 10 metres per minute is possible, or one 30 cm wide panel per every two seconds. Potential uses range from laptop cases to buildings to phones, and there are several firms reportedly interested in commercialising the technology.

Fonon releases new metal 3D printing systems FONON Technologies has released a metal sintering system that it claims is a breakthrough in 3D printing. Fonon, a US-based two-decadesold plus laser technology company, calls its new system 3D Fusion or 3D Laser Metal Sintering, and describes it as an additive nano powder manufacturing technology. “We believe that our vast experience in the design and manufacture of laser tools installed at most major Fortune 500 manufacturing companies will guarantee the broader penetration of exciting 3D metal fusion into industrial space,” said the company’s Robert Hunt in a statement. “We intend to replace the generic approach to 3D Metal prototyping and replace it with development of specialized high productivity 3D Fusion systems to fit specific applications.” The technology involves layeres of 10 to 100 microns thick of metal powder fused in a “tightly controlled vacuum or inert gas atmosphere.” Fonon’s fibre and C02 laser processing technologies include marking, cutting and engraving. Fonon Technologies Australia 1300 20 15 10 www.alfexcnc.com.au manmonthly.com.au

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C A L L I N G A L L I N N O V AT I V E A U S T R A L I A N M A N U FA C T U R E R S ! Nominations are now open for the 12th annual Manufacturers’ Monthly Endeavour Awards. Be a part of the only national awards program that celebrates the industry and recognises and rewards manufacturing excellence. Join us for Australian manufacturing’s night of nights by nominating your business or employees.

WHY NOMINATE?

• Exposure and publicity • Recognition for your hard-working team members • Valuable networking opportunities with key industry leaders

THE CATEGORIES ARE • Technology Application of the Year • Environmental Solution of the Year • Safety Scheme of the Year • Consumer/Trade Product of the Year • Industrial Product of the Year • Australian Steel Innovation Award • Global Integration Award • Exporter of the Year • Young Manufacturer of the Year • Lifetime Achievement Award • Most Innovative Manufacturing Company • Manufacturer of the Year