Manufacturers' Monthly November 2014 by Prime Creative Media

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

NOVEMBER 2014

Ramping up advanced material development INSIDE >>

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IT@MM Paradigm shift for automation

Material of the Month The great graphene race

Welding Local company welded to success

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Inside

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For daily news visit manmonthly.com.au

NOVEMBER 2014

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

4 Editorial

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

■ An energy crisis amid the glut

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

■ Automating can keep you ahead of the pack ■ On-machine Ethernet switch

6 News & Analysis

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

■ Logistics choices get orders flowing

10 Comment

■ Time to nominate

■ Trade deal with China? Yes, but... ■ We should compete globally

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

14 Management

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

■ Leveraging the debtor book ■ Do you have freedom to operate?

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

28 Welding ■ ■ ■ ■

Local company welded to success Fixturing tables How is welding safety looking? Welding management system

33 Women in Industry 34 Safety

■ FDA shaping sector

■ Australian access control system wins global acceptance ■ Explosion gets safety message across ■ Preventing electrical failure

■ Micro laser distance sensors ■ Ducting for CNC machining ■ Portable vibration calibrator

24 Material of the Month ■ The great graphene race MA 1 1 1 4 _ 0 0 1

MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

NOVEMBER 2014

38 Automation & Robotics

54 The Last Word ■ Innovation demands the right skills

THE CSIRO has established a new Rapid Automated Materials and Processing Centre (RAMP) to fast-track discovery of Ramping up advanced materials, optimise new prodadvanced ucts and solve processing challenges. material development Based at CSIRO’s Clayton campus in Melbourne, the centre is a state-of-the-art laboratory where robotics, informatics and technical expertise are available to SMEs, 2 0 1 4 - 1 0 - 0 3 T1 4 : 5 9 : 2 2 + 1 0 : 0 0 start-ups, large organisations

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Material of the Month The great graphene race

50 What’s New

Behind the cover

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48 Pharmaceuticals

■ Automating using mobile devices ■ Process automation system

INSIDE >>

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■ Diversifying can be a path to success ■ CNC tool grinders ■ Metal component prototyping

■ Paradigm shift for automation ■ Process manufacturers turn to ERP ■ Difference between IoT and M2M

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46 Metalworking & Machine Tools

■ We launch the annual awards

■ NORD rises to the occasion ■ Integrating drives in the information age

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

42 Materials Handling

■ Snapshot ■ Turning data into information ■ New R&D centre for CSIRO

Welding Local company welded to success

and academic researchers. The centre’s services are available to collaborators and industry partners within Australia and worldwide. In the photo, RAMP Centre Manager, Dr. Ben Muir (right) explains the operation of RAMP to the Victorian Minister for Manufacturing, David Hodgett (left) and Keith McLean, Director of CSIRO’s Manufacturing Flagship (centre).

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Comment

KEVIN GOMEZ – Managing Editor

An energy crisis amid the glut

NEXTISSUENEXTISSUE • Top 100 Manufacturers Report • Body Protection • Plant & Machinery Maintenance • Exporting • New Technology for 2015 • Warehousing & Forklifts • Conveyors & Palletisation MA 0 7 1 4 _ 0 0 0 _ B O C

MAGINE a large number of manufacturing and chemical processing plants switching from gas to solar power? Is that in Australia, one might ask? If gas prices rise, as many predict, manufacturers may be forced to look to alternative sources of energy. The fertiliser, chemical and food processing industries, in particular, will be hit hard. There has been much talk in mainstream media about the impact on households. Additionally, many businesses will be affected and the consequent rise in production costs will be passed on to the consumer. Unfortunately, there is no easy solution. LNG exports are expected to do for the economy what mining did in the last few years – becoming the industry to bolster Australia’s GDP and maintain our standard of living. LNG exports from Western Australia and Queensland are forecast to exceed $60 billion in 2017-18 with local prices rising to mirror that paid by overseas customers. This is a highly emotive subject, both from a domestic as well as an industrial perspective, and there are as many opinions as there are experts. The Australian Workers’ Union (AWU), claims one in five heavy manufacturers will shut shop in the next five years. All because of unaffordable energy energy prices. Perhaps, this isn’t just union scare-mongering. BIS Shrapnel, who conducted the research on behalf of AWU, forecasts the loss of over 90,000 manufacturing jobs in the next nine years. It’s not surprising that there is a growing clamour by industry for domestic reservation, export controls, national interest tests, government intervention and even subsidies for local industrial gas consumers. The US, a bastion of free market enterprise, has deemed that gas exports must be in the public interest. Some 1 2 0 1 4 - 0 6 - 1 0 T1 5 : 2 5 : 3 2 + 1 0 : 0 0 attribute the resurgence of manufacturing in that country

to the availability of abundant, low-cost energy. The Australian Industry Group has come out swinging and believes that although the country has a lot to gain from exporting gas, it could result in significant harm to industry if not pursued in the right manner. Gas at the crossroads: Australia’s hard choice, a report by the Grattan Institute (http://goo.gl/gCQC65), examines how a rising gas price will affect businesses and industry and the gas supply sector. The huge gas export industry rising in Western Australia and Queensland is set to deliver tremendous economic benefits but will be accompanied by adverse consequences for many local businesses. Still, the Grattan report argues against a national interest test, claiming it would only add cost and bureaucracy while delivering little benefit. For far too long, we have relied on the country’s natural resources to build our wealth. But for how much longer? The US too is blessed with natural resources but over the past 50 years, scientific innovation has produced about half of all that country’s economic growth. South Korea has very little natural resource but has become an economic powerhouse by developing its intellectual capital. Successive Australian governments have undervalued the importance of engineering and manufacturing and the role it plays in building our economy. It was good to see advanced manufacturing make it to the list of five industry sectors that will get government support and funding. But where does that leave the rest of our manufacturing industry? 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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News&ANALYSIS Turning data into information While at the recent Synergy 2014 Industry User Conference, Brent Balinski spoke to Schneider’s Philippe Rambach and Neil Smith about the company’s acquisition of Invensys and the importance of making decisions from data.

NE of the major stories globally in automation last year was Schneider Electric’s acquisition of Invensys. Schneider, the French energy management specialist, acquired a significant control system and software capability when it agreed to buy Invensys for $US 5.2 billion. According to Schneider CEO JeanPascal Tricoire, Invensys added “a very significant brick of technology, which completes our solutions.” Schneider/Invensys recently held their Industry User Conference, titled Synergy (for obvious reasons). Vice President of Industry Business in Australia for Schneider, Philippe Rambach, said that broadly speaking, there were three major benefits for the customers from the merger. A “full, absolute, complete automation offering” pooled the strengths of each organisation, and was able to cater to the need for discrete automation, process automation and hybrid automation. “The reality is even if your customer is more process or more discrete, at some stage in these factories in his company, he will need some of the rest of automation,” Rambach told Manufacturers’ Monthly. Other advantages were in terms of software offerings, and, crucially, a greater ability to convert users’ data into information, the need for which is a “gigantic” trend. “We have now, everywhere in the factories, in the automation, in the programmable logic controllers (PLCs), in everything, we have that data available. The question is how do we bring this data into useful information for the customer. [With] the combined software of Invensys and Schneider we will be able to bring to the customer information based on the data that comes from the automation. And that is absolutely key,”said Rambach.

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The “data to information” issue is often mentioned when the Internet of Things is discussed, which happens with increasing frequency. “Everywhere in the factories, in the automation, in the PLCs, in everything, we have that data available,” said Rambach. “And with the combined software of Invensys and Schneider, we will be able to bring to the customer information based on the data that comes from the automation.” Fundamentally, the Internet of Things and devices based around it are about collecting and making data meaningful, for reasons including predictive maintenance and optimised efficiency. “Because the Internet Of Things is bringing so much data that at the end it can mean nothing,” explained Rambach. “This is really what we have at heart: information accessible everywhere, anytime in a very simple way and with useful information.” Neil Smith, Country Manager Legacy, Invensys (acting) cited the benefits of connectivity (and sped-up decision-making) through an example involving a SCADA alarm notification at a plant. “The traditional response was the operator gets an alarm, the operator sees they have a fault on an instrument, he then phones his operations tech, he then has to go off and look at it,” he told Manufacturers’ Monthly. The worker might be an SOP contractor. He must enter the incident, do the permits, and follow a set procedure to see what has gone wrong. “Now with the interconnectivity or the Internet of Things providing all that information, you can actually pull up the moment that alarm comes up, you can do that automatically - if it says it’s a maintenance alarm it could have already dispatched the work order to the maintenance department,” said Smith.

“It may have already checked your inventory. ‘Do you have a spare part in place? If you haven’t: expedite...’ So you’re integrated from your controller into your manufacturing execution system (MES) and even into your enterprise resource planning (ERP). “So you’re connected up to SAP, you’re releasing orders, you get a notification of when the part has come in, and the maintenance guy goes and collects that, takes it out, maybe picks up the calibration files that he needs as well, presses download, the system automatically downloads the correct configuration, and calibration information, and he’s back up and running M A 1again.” 1 1 4 _ 0 0 0 _ ENG Great improvements in productiv-

ity could be achieved through simplified, automated processes, eliminating human error, and increasing the effectiveness of both the operator and the plant’s assets, with reduced downtime. Smith believes the merged companies are in a better position to meet all of these demands, as well as demands such as the need to bring products to market faster. “We now can address all of those industry trends around the ageing workforce, the need for customers to do more with less, to have green credentials, so it’s an extremely powerful offering.” Manufacturers’ Monthly attended the 1Synergy 2 0 12014 4 - Industry 1 0 - 0User 8 T Conference 1 5 : 1 6 : 0 9 + 1 1 : 0 0 as a guest of Schneider.

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Manufacturers’ Monthly NOVEMBER 2014 7

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News&ANALYSIS New R&D centre for CSIRO The CSIRO has established a new Rapid Automated Materials and Processing Centre to fasttrack discovery of advanced materials, optimise new products and solve processing challenges. Hartley Henderson reports.

ASED at CSIRO’s Clayton campus in Melbourne, the Rapid Automated and Processing (RAMP) centre is a state-ofthe-art laboratory where robotics, informatics and technical expertise are available to SMEs, start-ups, large organisations and academic researchers. Although some of the functions and capacity of RAMP have been available online since 2011, major benefits are expected to flow from consolidating facilities, robotic and automated equipment, and CSIRO talent, into the one Centre to facilitate and streamline the development of new advanced materials. According to the manager of RAMP, CSIRO’s Dr Ben Muir, the M A 1research 1 1 4 _productivity 0 0 0 _ G Ogains O improved from using high throughput and

automated experimentations mean that the scientific solutions discovered can reach the marketplace in a timely, sustainable, resource efficient and cost efficient manner. “The R&D phase of industrial materials and processes will be accelerated and processing challenges solved, but this could not have been done without the use of robotics and a focus on innovation through automation,” he told Manufacturers’ Monthly. “From discovery workflow to scaleup of lead products, we are accelerating the R&D phase of industrial materials and processes. Materials of the future can be made, designed for specific tasks and designed with specific chemistry. “Areas that we are working to en1 2 0 1 4 - new 1 0 -polymers, 0 9 T 1 oil 0 : recy1 9 : hance include cling, agrochemicals and anti-cancer

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RAMP Centre Manager, Dr Ben Muir (right), explains the operation of RAMP to Keith McLean, 2Director 9 + 1 of1 CSIRO’s : 0 0 Manufacturing Flagship (middle) and the Victorian Minister for Manufacturing, David Hodgett. pharmaceuticals. With polymers, for example, we are developing polymer libraries, and putting different polymers together to get different properties with a view to developing new products. Key elements of RAMP equipment include the Chemspeed SLTII robots which have transformed the way exploratory research in polymer and nanoparticle synthesis and formulation is undertaken. Other important RAMP facility equipment includes the Avantium Flowrence instrument which is a multiplexed 48 channel rapid catalyst testing rig for fast tracking catalyst development and discovery. This time and cost efficient instrument is capable of conducting 48 tests simultaneously. In addition, a Chemspeed SWING robotic synthesis and formulation platform is installed to deliver increased outcomes for researchers by automating their materials synthesis and processing workflows. Major publicly listed company Orica commissioned the RAMP Centre team to investigate and develop a range of catalysts to explore new

ways to improve on the reaction that makes ammonia, which is a building block for many fertilisers, explosives, pharmaceuticals and household cleaning products. Orica’s Technical Advisor, Jez Smith, says the aim of the project was to make ammonia more efficiently, which would in turn offer cost reduction opportunities in product manufacture. “At the RAMP Centre there was a focus on optimisation of catalyst formulation to be used in the production of ammonia, and a large amount of data was provided in a very short time,” he said. “The benefits of utilising CSIRO’s RAMP facility have proven to be substantial for Orica. Research which was originally projected to take three years was delivered in just three months. RAMP Centre services are available to collaborators and industry partners within Australia and worldwide. CSIRO Manufacturing Flagship, RAMP Centre 03 9545 2611 www.csiro.au/RAMP manmonthly.com.au

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In brief... Gas prices to soar: report A report from the Grattan Institute predicts liquefied natural gas exports will be worth $60 billion a year and there will be significant domestic price rises. However, it advises against intervention in the market. It claims this would do nothing to create more gas and would actually create problems.

ACCC looks at CSR, Boral JV The ACCC wants further information to determine whether the joint venture would result in a reduction of competition. Currently there are three major clay brick suppliers in Eastern Australia – CSR, Boral and Austral Bricks. So the proposed joint venture would reduce this number to just two.

New textiles & clothing hub META has unveiled a new collaborative hub, based around the textiles, clothing and footwear industry. The launch of the hub was announced in partnership with the Council of Textile & Fashion Industries of Australia. There were 19 participants involved in the launch, including seven manufacturers and six research organisations.

100 new pet food factory jobs Nestlé Australia has completed a $65m upgrade of its Purina PetCare factory in Blayney and created 100 new full time jobs in the process. The facility will produce more than 100,000 tonnes of wet pet food each year, which will be sold in pouches in Australia and exported to countries such as Japan and China.

Govt announces industry agenda The federal government has announced its Industry Innovation and Competitiveness Agenda. Five areas of competitive strength were identified – food and agribusiness; advanced manufacturing; mining equipment, technology and services; oil, gas and energy resources; and medical technologies and pharmaceuticals.

Renewables group backs RET change The Clean Energy Council will support a plan to exempt the aluminium industry from the Renewable Energy Target. Its support for the change is based on the view that the exemption can ensure bipartisan support for keeping the RET.

manmonthly.com.au

The secret to productivity in manufacturing Brigid van Wanrooy, Research Manager, Centre for Workplace Leadership at University of Melbourne. International research is mounting on the case for a group of management tools – known as high performance work practices – for improving business performance. And the evidence is particularly compelling in manufacturing. So why isn’t the Australian manufacturing industry abuzz with these practices? It presents quite a paradox: manufacturing businesses, on the whole, are not implementing a set of practices that will boost performance. Small and medium sized manufacturers (companies with less than 200 employees) stand to gain significantly from high performance work practices they have the labour and capital foundations yet are small enough to be responsive to changes in demand and new innovation developments. A study of more than 1,000 manufacturing SMEs, commissioned by the Australian Government Department of Industry, has shown while most workplaces have at least some of the practices in place, there is still a long way to go

before they are reaping the full benefits. So what is behind this “performance paradox”? Why aren’t more manufacturing SMEs implementing some relatively simple practices to train, motivate, and involve their employees? Manufacturing SMEs could do with more information and support to assist with the adoption of high performance work practices. Businesses that had successfully adopted the practices were more likely to seek advice from professional bodies such as consultants and employer or industry associations. An important success factor was that the take-up of the practices had been the result of a workplace champion, either a senior manager or business owner who had driven their adoption and continued to look for ways to improve. But most importantly, we found that no one high performance work practices system looked the same. The way they are operationalised can differ significantly across workplace contexts. The practices can be tailored to individual needs. This is an edited version of an article which first appeared in The Conversation.

What members of our manufacturing community thought about the lack of uptake of the management tools Tony Broughton This article points to three phenomenona that I’ve witnessed as a manufacturing leader and supply chain consultant. The first is an inward looking ‘local only’ mindset, as opposed to a truly international mindset where benchmarking and global competitiveness are constant drivers of success. In my experience, the prevailing mindset in places like the UK doesn’t make a distinction between ‘local’ and ‘export’ to anywhere near the extent it is made in Australia. The second phenomenon I see is a deep seated ‘management knows best’ culture, a sort of post war era management culture that is reluctant to truly and fully empower employees to not just come up with innovative ideas, but to implement them. Companies are missing out on the vast performance advantages that highly engaged employee groups deliver over less engaged groups. The third phenomenon is

a ‘tick box’ approach to Lean Manufacturing. Lean was very much ‘on trend’ in western manufacturing businesses during the 80’s and 90’s, but many leaders saw it as a project rather than the lifelong process of learning, doing and improving which it is. As a result, a lot of ‘Lean initiatives’ lost momentum and never delivered on the promise. The mindset around Lean needs to be reinvigorated in these organisations. Interestingly all of these phenomena are in the gift of leadership to change (not government, not unions, not even employees). So perhaps what we leaders need most is just a good mirror.

vision and a willingness to invest and innovate. I think poor management is an issue as much as thinking inwardly. Australia’s manufacturing future is not just about pure self-sufficiency (our population is simply not bigger enough) within the Australian market but competing on a global stage.

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

Anthony I think you’re spot on Tony. Australian manufacturing (baring a select few) companies are simply stuck in a rut and thinking about today/ tomorrow not years down the track. It’s hard to manage a business without

Manufacturers’ Monthly NOVEMBER 2014 9

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Comment

INNES WILLOX – CEO Australian Industry Group

editor@manmonthly.com.au

Trade deal with China? Yes, but... The FTA with China has been under negotiation for 10 years. Even so, writes Innes Willox, Australia must stick to its guns and be willing to take that little bit of extra time to secure the right final deal.

should include advantages for the MPORTANT benefits can be local manufacturing sector and opgenerated both for Australia and portunities for its exporters. for China by putting in place a Manufacturers are painfully aware well-designed Free Trade Agreement that they cannot compete with China (FTA). However, many Australian in terms of price. China has the businesses fear the risks inherent in advantage of a huge pool of cheap a hastily agreed agreement for Presilabour. But Chinese exporters have dent Xi’s visit for the G20 meeting on other significant advantages. Austral16-17 November. ian businesses compete directly or Manufacturers are especially wary that a quick deal could come at a cost indirectly with the powerful stateowned enterprises that still play a to them and the broader economy. major role in the Chinese economy. A well designed FTA could help China gives state-owned enterprises deepen commercial relationships and and Chinese businesses preferences extend benefits beyond our outbound tradeAinDmineral agricul_ M A Nproducts, MJ A C A P R _ 1 3 . in p dlocal f and P a export g e 1markets, 1 1 / hidden 0 3 / 1 3 subsidies, transport and energy cost tural goods and services. It could and

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10 NOVEMBER 2014 Manufacturers’ Monthly

advantages and financial support. Australia’s manufacturers want an FTA to require Chinese enterprises to compete on fair and non-discrimi, natory 1 0 terms. : 5 0 They A Mwant transparency in Chinese regulations and requirements. They want provisions covering the full variety of advantages afforded to Chinese exporters. But there is no confidence that a quickly agreed FTA will adequately deal with these entrenched Chinese practices. There are reports that China wants Australia to weaken our WTOcompliant dumping and countervailing duty arrangements. China has the highest number of anti-dumping actions taken by Australian business. The current anti-dumping system contributes to Australian efforts to ensure that international trade remains fair through a process designed to level the “playing field”, which has been distorted by overseas suppliers. It is critical that Australian industry is able to continue to take action to counter the negative impact of illegal under-pricing through the retention of an effective anti-dumping system. Given the characteristics of the Chinese economy, it is essential that the system retains the ability to use ‘surrogate’ methodology. In the recent FTAs with Korea and Japan, Australian manufacturers have come out second best in terms of phasing out tariffs. Local manufacturers face immediate detriments

and very little by way of compensating benefits. This is in stark contrast to the often considerable concessions to our partners’ producers, such as extended periods for the phase-down of tariffs on agricultural products. Several things are needed to ensure an Australia-China FTA delivers to its full potential. We should have a sober and independent re-examination of the economy-wide and sectoral impacts of an agreement. Our negotiators need to become much more active and open in building their understanding of the Australian impacts of proposals. They need to ensure that non-tariff barriers are fully taken into account. And they need to be as insistent as their counterparts on provisions – such as orderly tariff phase-downs – that give businesses adequate opportunity to adjust. No doubt it will be argued that we need to finalise this agreement as soon as possible to secure some largely undisputed sectoral benefits. However, this misses the point that FTAs need to be considered in their entirety. Benefits for some sectors should not be at the expense of other sectors. The FTA with China has been under negotiation for 10 years. There should be no unseemly rush in the next weeks to conclude an FTA which is not clearly in the interests of the whole Australian economy. www.aig.com manmonthly.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. Confirmed International Global Thought leaders:

DR. STEVEN A. MELNYK Michigan State University (U.S)

ANITA HOUSEHAM United Nations Global Compact (U.S)

DANIELE MELDOLESI Cargill (Italy)

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Comment We can (and should) compete globally Australia’s manufacturing industry has a high-cost reputation. Nevertheless, Herbert Hermens argues, there is no reason our companies can’t compete on the world stage.

EING competitive in the tough global market is important for Australian businesses. Equally important addressing the perception that Australian business cannot compete. International clients often have a preconceived idea about Australian business. They think we are going to be too expensive, and they are surprised that we can value add and make our products a viable option for their companies. It’s hard to break through that barrier. The only option is to constantly knock on doors and travel the globe to introduce Australian products into new markets. The opportunities are there for the taking, but it’s vital to have that direct contact with prospective clients. The perception in the market that Australian businesses cannot compete on price has driven some manufacturers to send production off shore, while others have simply accepted they can’t get into particular markets, and this is a great shame.

Keech is utilizing 3D printing as a means to save resources and time not only in their own casting manufacturing processes, but across many other industries. 12 NOVEMBER 2014 Manufacturers’ Monthly

It is essential for Australia to invest in capital and lead with the world’s best equipment, most skilled labour force, and efficient processes. Australian industry has a lot to offer and we need to promote it. At Keech, we can – and we do – supply parts that offer value at every level. To be globally competitive we are manufacturing reliable and consistent products. We are up against the world, but we’re able to offer clients the best overall package with a balanced price and a consistent product. Customers want to know what they are getting will meet their expectations. Australian industry has an advantage over some of our competitors in that regard. We can offer consistency and quality assurance through rigorous QA programs and guarantees that we’ll manufacture to Australian and ISO 9001 quality standards. Adaptability is key to competitiveness. Yes, price matters, but it’s our ability to quickly adapt to our clients’ needs that keeps businesses competi-

tive not only in Australia, but on the global market. At Keech, we don’t just focus on one particular part of our company, we work to grow each area of our business and that’s part of the reason Keech remains competitive. We employ 160 people and we purposely

“

The opportunities are there for the taking… seek out and work closely with local suppliers in the Bendigo region where we are headquartered. We are committed to keeping the manufacturing industry alive in Australia, and therefore, we need to look for things that allow us flexibility,

profitability, viability and the ability to rise to global demand. Since the global financial crisis in 2008, we have made an aggressive strategic push into the global economy. With many such fluctuations in demand and product supply, moving into the global market was just good business sense. The stark reality of globalisation has set in. There is a fundamental need to accept we are competing against every part of the world and not just other Australian companies for local and overseas contracts. Keech cast components are exported to world-wide markets including Japan, Russia, North America, South America, Indonesia and Papua New Guinea. Most of the talk about overseas opportunity has centred on China and South East Asia, but there is a growing and untapped market in developing nations such as the Eastern Bloc manmonthly.com.au

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countries of Central and Eastern Europe. Booming mining industries in countries like Mongolia and Kazakhstan represent strong opportunities for Australian rail infrastructure manufacturers. We have an absolute commitment to innovation in our company and we are increasing our competitive edge four-fold via product, strategic, management and process development. We continually review every element of our company and ask: can we do better? The reality is that our industry does have to be price competitive. The bottom line will always be a key factor in any business. We continually monitor costs and drive price. But having the lowest price is not the be all and end all of the matter and Australia can certainly deliver to a world-class quality standard. This means adjusting existing structures to maximise efficiency of invested M A 1resources. 1 1 4 _ 0It 0is0important _ F A N toutilise fixed capital on a more con-

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sistent basis and introduce a flexible labour force to slot into that. Manufacturers need to think outside of the box in order to over-

production hours or daily procedures to investing more revenue in research and development or staff training. It is essential for Australia to

invest in capital and lead with the come cost barriers without reducing worldâ&#x20AC;&#x2122;s best equipment, most skilled individual wages or sending it off force, 1shore. 2 0This 1 4 could - 1 0be - anything 0 9 T 0 9from : 4 7 : 5 labour 0 + 1 1 : 0 and 0 efficient processes â&#x20AC;&#x201C; in the eyes of other countries, these adjusting the flexibility of foundry

are our calling cards. This is not an area where money should be saved or corners cut. There are new paradigms in the manufacturing industry that bring lower production costs and higher efficiency. Many component manufacturers worldwide, including Keech Australia, have introduced smaller foundries where they can test new processes and invest in new technology prior to implementing at a larger, main site. This helps to keep costs down, but also assures the manufacturer is capable of serving the global market. As in any industry, Australian manufacturing must be able to differentiate its products from rival products in order to become and remain competitive and this too requires investment. [Herbert Hermens is CEO of thirdgeneration castings manufacturer Keech Australia] Keech Australia 02 9648 3100 www.keech.com.au

Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2014 13

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Management Leveraging the debtor book With a growing number of Australian manufacturing companies seeking alternative ways to fund operations, Lee Clarke looks at debtor finance and how it can be used to support business growth.

ANY manufacturers lament the fact that they are profitable on paper but continue to suffer from poor cash flow positions. While many companies face cash flow constraints from time-to-time (regardless of the industry in which they operate), the problem is particularly acute in the manufacturing sector. The key cause of ongoing cash flow issues for the manufacturing industry rests with the inevitable ‘cost/payment lag’ – the time between when the costs associated with manufacturing a product are incurred and when payment from customers is received. The net result of this ‘cost/payment lag’ is a large proportion of a manufacturer’s working capital being tied up in materials, stock and debtors, often leaving an inadequate sum of working capital to pursue growth opportunities. The continuing trend of businesses taking longer to pay their bills only makes effective cash flow management more difficult, particularly so given the largest businesses often take the longest to pay. The extent to which debtor finance is able to provide a workable funding solution for manufacturers can be seen in the latest DIFA statistics, which reveal that the sector accounts for approximately 20% of the $60 billion in total debtor finance annual turnover.

How debtor finance works In the past there has been an element of confusion surrounding what debtor finance is and how it works. This confusion stems partly from the fact that debtor finance goes by a number of names, including receivables finance, invoice financing, cashflow finance, and the list goes on. All these terms are correct. 14 NOVEMBER 2014 Manufacturers’ Monthly

Manufacturing accounts for approximately 20% of the $60 billion in total debtor finance annual turnover. Regardless of the name ascribed, debtor finance is a simple and straightforward finance facility, working in either of the following ways: Factoring and discounting are two options for businesses to improve their cash flow. Both of these financial arrangements are primarily secured against the unpaid invoices of a business. Under both facilities the client sells the unpaid invoices for immediate access to cash, but under the factoring arrangement the debtor finance provider additionally manages the client’s sales ledger and collection of accounts. Therefore, under a factoring arrangement the debtor makes payments directly to the provider. Under discounting, the debtor makes payments to the company, as per usual, but as the debt is owned by the provider, the company manages the collection process and then passes the revenue collected to the provider. Generally, a discounting arrangement would be utilised by larger organisations as they have the in-house resources in place to manage collections and the sales ledger. Conversely, smaller organisations often prefer

a factoring arrangement as they are alleviated of the responsibility of managing collections, allowing the firm’s personnel to concentrate on other business functions. One of the attractions of both discounting and factoring arrangements is that they are self-liquidating facilities, meaning that the company isn’t taking on additional debt per se, but rather taking an advance on money that is already owed to it. The good or service has already been provided, and while the facility needs to be repaid, this should take care of itself as a matter of course as the company’s debtors settle their invoices.

The benefits of debtor finance While it’s true that debtor finance is at times viewed as a tool to merely overcome short-term cash-flow constraints, there are a growing number of Australian businesses engaging it more strategically to grow their business. The enhanced cash flow position of a company can be used to employ more staff, for capital expenditure (plant and equipment), or to take advantage of acquisition opportunities. According to research undertaken by the DIFA, Australian businesses

recognised the three key benefits of debtor finance to be; • The freeing of cash within 48 hours (usually varying between 75-90% of the value of an invoice), allowing the business to accelerate growth; • The ability to utilise the improved cash flow position to obtain early settlement discounts from suppliers/creditors (up to 5%); • A reduction in management time spent on chasing slow payers (through a factoring arrangement), allowing managers of the business to concentrate on areas more appropriate to their responsibilities, such as driving new business. The fact that debtor finance generally doesn’t require real estate security is another particularly attractive feature. Lee Clarke is Chairman of the Debtor and Invoice Finance Association (DIFA), which represents the interests of the major providers of debtor finance in Australia and New Zealand. DIFA 02 9233 8205 difa.asn.au manmonthly.com.au

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Do you have the freedom to operate? Manufacturers are advised to check all intellectual property (IP) rights before signing any trade deal. Susanne Hantos writes.

OR companies that manufacture, import and/or export goods, there is the risk that third party intellectual property (IP) rights might be infringed. The same is true in relation to how goods and services are branded and presented to the market. If the relevant IP rights are not taken into account, the consequences can be severe. Companies can face writing-off investment and, worse still, become embroiled in expensive legal proceedings for infringement of IP rights. To illustrate this, take the case of Company A that wants to import and sell in Australia a product that is manufactured overseas. Company A receives assurances from the overseas manufacturer that these activities are not precluded by any Australian IP rights. Company A buys and starts importing and selling the product in Australia. However, it comes to light that Company B has a granted and inforce Australian patent that can be used to put a halt to what Company A is doing. Company A is effectively shut out of the market and cannot proceed unless Company B consents. If Company B is aggressive, a lawsuit for patent infringement might eventuate.

If the relevant IP rights are not taken into account, the consequences can be severe. Moreover, if Company A unwittingly sells the product under a trade mark that is registered in Australia by someone else, there may be issues of trade mark infringement to deal with. So, how does Company A avoid these kinds of pitfalls? The answer is to identify and understand any IP rights that are relevant to the proposed activities. This means undertaking a Freedom to Operate (FTO) check. This check is an assessment of IP infringement risk and should be done before engaging in the proposed activities. So how do you go about performing a FTO check? To carry out an effective FTO check, you firstly need a clear understanding of what IP rights might be applicable to a given situation.

There are different types of IP rights and the ones relevant to most manufacturers, importers or exporters will be patents, industrial designs and trade marks (see breakout). Then you need to carry out searching to identify potentially relevant rights and quantify the risk that those rights will be infringed. This is not a straight forward process and it should not be taken lightly given the potentially adverse consequences of getting it wrong. In particular, searching to identify relevant IP rights can be involved and difficult. Each country offering IP protection has some form of a register that records IP rights. Depending on the country, the registerMmight A 1 1be 1 included 4 _ 0 0 0on _ aBsearchOK able database or it may be available

only in paper form that can only be inspected in person at a government office. Even when a database of IP rights exists, searching is an art that requires significant expertise and experience. A well thought out search strategy might involve various layers and various approaches. And you are not looking for the tip of the iceberg! There is significant skill required in analysing and interpreting results. Needless to say, performing FTO checks is work best left to professional searchers. [Susanne Hantos is Manager of Davies Collison Caveâ&#x20AC;&#x2122;s Patent Intelligence Services Group] Patent Intelligence Services Group 1 2 0 1 4 - 1 0 - 0 8 T 10229293 : 51000 1 : 5 4 + 1 1 : 0 0 www.davies.com.au

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KEY TYPES OF IP RIGHTS Intellectual property (IP) refers to creations of the mind, such as inventions, literary and artistic works, designs and symbols, names and images used in commerce. IP is protected in law by various rights, including patents, industrial designs, trade marks and copyright. PATENTS are used to protect inventions with a technical quality to them. Patents can be used to protect product and processes (methods). INDUSTRIAL (REGISTERED) DESIGNS are useful for protecting the overall appearance of a product or component of a product. TRADE MARKS are used to distinguish the goods or services of one trader from the goods and services from another trader. It is possible to register as trade marks names, logos and shapes, and these days even scents, colours and sounds.

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BOKERS.COM/MANM Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2014 15

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TechnologyIT@MM Paradigm shift for automation projects It is common for large automation projects in the mining, gas and petrochemical industries to overrun budgets. Matt McDonald reports on a new methodology that aims to address this situation.

ARGE automation projects traditionally follow a sequential order. By necessity, projects are carried out one step at a time, with each step dependant on the completion of the previous one. For the thirty years now, automation projects have been carried out sequentially – from definition to design, manufacture, configuration, testing and installation. But, while that traditional project approach has stayed the same, other processes have evolved. “In a world where project costs are going up, it is normal for most large projects to overrun their budgets. No one wants it but it happens. Schedules are being exceeded all the time,” Tony Hains, Operations Manager at Honeywell Process Solutions told Manufacturers’ Monthly at The Asia Pacific Honeywell Users Group. In a competitive world, customers are now demanding a way to deal with these cost overruns. New technology has now made it possible meet those demands. Honeywell, for example, has responded by developing a methodology it calls ‘Lean Execution of Automation Projects’ (LEAP). “The idea of LEAP is really to make sure that the process control portion of the project is helping the customer to start up faster and safer and in a logical manner,” Honeywell Process Solutions director sales – Pacific, Neil Wold explained to Manufacturers’ Monthly. LEAP represents a paradigm shift. It decouples the software from the hardware and allows them to be produced in parallel rather than in the traditional sequential order. According to Haynes, for years the company has been changing the way it delivers projects. Honeywell has the tools, the standard build templates and the project management processes. Now they also have the enabling technology to 16 NOVEMBER 2014 Manufacturers’ Monthly

Potential benefits

LEAP aims to make sure that the process control portion of the project starts up faster, safer and in a logical manner. make something like LEAP work. What technology? Universal I/O – In 2012, Honeywell introduced Universal I/O modules which allow operators to quickly and remotely configure channels as analogue or digital I/O using the company’s proprietary Universal Channel Technology. And earlier this year, the company released Universal Cabinets, which incorporate the Universal I/O modules and can be viewed as a standard part. These cabinets are standardised parts that are ready to buy. Preconfigured and pre-tested, they don’t require any further engineering. As Andrew Hird, Honeywell Global Vice President of Sales told Manufacturers’ Monthly, “When we get to the end of the project, if you want 100 cabinets – 30 of this combination, 20 of that combination – we can ship them basically out of stock, rather than have to design all this for the customer.” Virtualisation – Virtualisation is a technique whereby operating systems and applications are separated from physical hardware. It means that,

rather than using many servers to run many tasks, you can use a single server to run multiple operating systems and applications. It means that plant hardware is greatly reduced and process control systems can be made more reliable. Cloud Engineering – The Cloud has received some bad press lately. Honeywell is at pains to point out that LEAP uses its own Honeywell Cloud, not the Cloud from which data seems to sometimes fall into the wrong hands. Cloud Engineering frees up projects geographically. It means that engineers can work on projects from anywhere in the world. They don’t have to be in the same room, the same building, or the same city. In addition, it means that customers use the supplier’s physical infrastructure during the project engineering process. There is no need for them to purchase hardware until the project is near completion. When they do purchase that equipment it is the latest equipment available, not what was the latest when the project began two or three years before.

By separating physical from functional design, the LEAP methodology breaks the traditional sequential order of projects. It allows parallel workflows, applies standardised designs, and enables engineering to be done from anywhere in the world. It can save money. According to a hypothetical study by Honeywell, it can cut automation CAPEX costs by up to 30 per cent and increase schedule flexibility by up to 25 per cent. According to Honeywell, the important thing is that LEAP can help projects start on time. The potential costs of late start up are hard to calculate but are very significant. The automation component in major budgets now account for just 1 to 3 per cent of the total budget. “So cost itself is not the major risk. Starting your plant up six months late, losing six months of production is an enormous risk. That’s what all of our customers are trying to eliminate,” he said. While LEAP came about as a result of customer demand, it isn’t for everyone. As Hird explained, there are lot of conservative companies who like to tread cautiously. However, Honeywell has been using all the elements of LEAP for some time already. The only difference is that they now offer it as a package. Customers can still stick to the traditional method or pick elements of LEAP that suit them. Manufacturers’ Monthly attended the Honeywell Users Group (HUG) Symposium as a guest of Honeywell. [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] Honeywell Process Solutions www.honeywellprocess.com manmonthly.com.au

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Process manufacturers turn to ERP Faced with a range of challenges, process manufacturers need complete overviews of their operations. As Michael Lorge explains, ERP solutions can provide them with such information.

ROCESS manufacturing industries are among some of the most heavily regulated, so it’s hardly surprising they’ll use whatever means necessary to make operations easier. There are few industries that were immune to the effects of the global financial crisis and in many respects, process manufacturers are just starting to get back on their feet again. This doesn’t mean, however, that there aren’t still challenges to be faced. Ageing infrastructure and high costs are just two of the issues that need to be overcome on a daily basis. Process manufacturers are also facing difficulties when it comes to complying with new environmental and safety regulations. Companies are expected to be proactive in their approach to these issues, which isn’t always easy. With inaction no longer an option, the process manufacturing industry will need to evolve to cope with these issues – and ERP solutions could be just what are required to make this happen. Perhaps the best way to underMA 1 0 1 4 _ 0 0 0 _ S A G stand the issues facing process manu-

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facturers is to understand exactly what their operations entail. Simply put, they create products that, following the manufacturing process, are unable to be returned to their original form. This includes everything from wine and soft drink production through to the creation of plastic products. While each company will come up against its own specific challenges, there are some common problems that affect the industry as a whole.

bottom line will be affected, invest too little and quality could be jeopardised. Challenges manufacturers face Quality control must be at the centre of everything a process manufacOne of the greatest difficulties faced turer does, but strict environmental by process manufacturing companies and safety standards may mean this is the need to stay ahead of the comisn’t easy. petition. As with many other indusEvery stage of the process is subtries, the market is highly competiject to heavy scrutiny, so companies tive, leaving businesses desperately need a means of gaining a complete looking for a point of difference. overview of their operations that enaThis comes at a time when cusbles them to meet all the necessary tomer demands are growing – people regulations. are expecting more for their money, With inefficient infrastructure as well as top quality customer serto compete with and the need to vice to match. constantly stay ahead of the game, Process manufacturers need it’s hardly surprising companies are to delicately balance the need to looking for ways to enhance their provide a great service with cost 1 2 0 1 4 - 0 9 - 1 1 T1 4 : 4 3 : 5 5 + 1 0 : 0 0 industry specific business processes. controls. Spend too much and the

ERP software gives ultimate visibility into projects, enabling process manufacturers to enhance the efficiency of their operations while reducing the risk of failure. In turn, customers can be more satisfied with the products and services they receive, giving manufacturers that head start they so desperately need. There are many challenges faced by the sector, so a good ERP solution should address all of them and generally make the company more streamlined and efficient. [Michael Lorge is Managing Director of Sage Business Solutions] Sage Business Solutions 13 7243 www.sagebusiness.com.au

Manufacturers’ Monthly NOVEMBER 2014 17

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Technology IT@MM

What’s the difference between IoT and M2M? Before the industrial Internet of Things there was machine-to-machine communications. Chantal Polsonetti outlines the features of each.

NDUSTRY discussions on the industrial Internet of Things (IoT) and its potential benefits have raised numerous questions regarding distinctions between the IoT and its forerunner, machine-to-machine (M2M) communications. Remote device access is a core common deliverable for both solutions, so questions concerning how to distinguish between the two are understandable. Commonality between the two solution types largely ends there and they differ in how they achieve remote device access. For example, traditional M2M solutions typically rely on point-to-point communications using embedded hardware modules and either cellular or 18 NOVEMBER 2014 Manufacturers’ Monthly

wireline networks. In contrast, IoT solutions rely on IP-based networks to interface device data to a cloud or middleware platform. The M2M market’s sustained inability to realise its forecast growth potential, and the reasons for that failure, provide telling indicators of the true differences between the IoT vs. M2M. While M2M solutions offer remote access to machine data, these data are traditionally targeted at point solutions in service management applications. Rarely, if ever, are the data integrated with enterprise applications to help improve overall business performance. Integration of device and sensor data with Big Data, analytics, and other enterprise

applications is a core concept behind the emerging Internet of Things. This integration is key to achieving numerous benefits throughout the manufacturing enterprise and, ultimately, growth in the marketplace.

Remote Device Access Access to remote devices, machines, assets, and other entities provides a primary value proposition for both M2M and IoT solutions. M2M applications are typically composed of hardware modules embedded in a machine at a customer site that communicate via proprietary cellular or wireline networks to a dedicated software application, often at the supplier’s service operation. This

capability allows the device/asset/machine supplier to reduce its service management costs through remote diagnostics, remote troubleshooting, remote updates, and other remote capabilities that reduce the need to deploy field service personnel. In industrial IoT solutions, the “what, how, and why” of remote device access involves much broader brushstrokes. The IoT accommodates not only the same devices/assets/ machines as M2M applications, but also low-power and passive sensors as well as inexpensive devices that may not be able to justify a dedicated M2M hardware module. IoT devices communicate via standards-based IP networks and their data are incorpomanmonthly.com.au

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rated into enterprise applications to enable not only improved service, but also operational improvement and new business models such as productas-a-service. The ability for applications throughout the enterprise to access device data to enable performance improvements, business innovation, or other possibilities, clearly distinguishes the potential of IoT versus M2M. This IoT-based data delivery is usually to a cloud, enabling access by any sanctioned enterprise application. In contrast, M2M typically employs direct point-to-point communication. The cloud-based architecture also makes IoT inherently more scalable, eliminating the need for incremental hard-wired connections and SIM card installations. This is one reason why M2M is often referred to as “plumbing,” while the IoT is seen as a universal enabler.

Integrated IoT solutions Enterprise integration, higher-order benefits potential, L M0 2 1 4 _ and 0 0 the 0 _ ability B A C toaccommodate more and a wider vari-

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ety of devices underscore why the IoT market bears much greater potential than traditional M2M. Customers of M2M and IoT applications alike aim to reduce unplanned downtime, and both types of solutions offer the potential to improve service management, a higher order benefit. The IoT excels here as well, providing the ability to assess these issues from a system level as well as at the device

“

The IoT market bears much greater potential than traditional M2M...

or machine level and applying analytics and processing Big Data to tweak out incremental benefits. Reliance on the software versus hardware aspects of the architecture makes IoT solutions more accessible 1to a2broader 0 1 4 -variety 0 1 - of 1 0both T 0 internal 8 : 0 4 and external customers. Universal

Supplier landscape

Suppliers of M2M and IoT applications typically have different competen-cies. This directly affects users’ ability to generate the desired benefits from their remote device access solutions. M2M supplier competencies tend to focus on the “plumbing” aspects mentioned earlier, particularly embedded hardware and cellular telecommunications networks. Many are starting to add cloud capability through internal development, acquisition, or partnering. But for most M2M suppliers, this represents new terrain. IoT solution suppliers, on the other hand, tend to emphasize software capabilities and particularly These are : 4 enterprise 1 + 1 1 : integration. 0 0 important distinctions.

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visualization capabilities allow data to be presented anywhere, including on mobile devices, to any sanctioned users. The combination of these attributes further raises the visibility of IoT solutions and generates attention at the C-level, rather than just at the departmental level.

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Specify the right solution The terms M2M and IoT have become synonymous in many quarters, but it is important to make sure you specify a solution that meets your current and anticipated needs. This involves recognizing up-front whether you seek a point solution for simple remote machine access, like in a service management application, or look to drive incremental business benefits across the enterprise through use of analytics, Big Data, and other software-oriented performance improvement tools. Enterprise integration capabilities, scalability, software vs. hardware emphasis, and use of standard vs. proprietary device connections are key criteria that impact whether you have an IoT or M2M solution. [Chantal Polsonetti is Vice President of ARC Advisory Group. ARC recently launched a dedicated Industrial IoT Advisory Service.] ARC Advisory Group www.arcweb.com

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Manufacturers’ Monthly NOVEMBER 2014 19

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Motors& DRIVES NORD rises to the occasion Finding that its crane of choice was no longer available, an overhead crane provider was faced with the task of synchronising a new bridge crane with two existing ones. NORD Drivesystems took on the challenge and successfully configured the drives within budget.

and assured us that we could match acceleration, deceleration, braking, and traversing speeds with the existing non-inverter driven cranes.” NORD proposed an integrated solution consisting of an efficient helical gear unit, a standard fourpole electric motor with a 10 Nm electromagnetic brake, and a motormounted frequency inverter with an external brake resistor. The two bridge drives were configured to synchronise and match the existing cranes using a simple parameter set-up procedure and were flangemounted on the crane girder. Operation is comfortably carried out with the same remote control pendant, no additional configuration is required. The precision of the NORD helical gear set and the flexibility of the decentralised frequency inverter software permitted this new crane to be synchronised with the existing cranes without rotary encoders.

ELBOURNE-BASED Modular Cranes, an overhead crane supplier, offers modular packages for payloads up to 100 tons. The cranes are individually adapted to suit the particular factory layout or application. The family-run business, established more than 30 years ago, supplies material handling products to clients all over the country. Modular Cranes works with top crane technology manufacturers such as Advanced Radiotech Corporation, Donati, and Street. The company also services cranes throughout Victoria as well as New South Wales, South Australia, and Tasmania.

Emulating a discontinued crane A manufacturer of heavy truck trailers approached Modular Cranes with an unusual problem. The company had been successfully using two 22 meter wide overhead cranes in its factory. The cranes, traditional single-girder bridge designs rated at 12.5 tons each, were installed on the same set of support beams spanning the entire length of the factory. They were identical in their specifications and synchronised for two speeds as well as for ramp-up and ramp-down times. A wireless handheld remote control pendant simultaneously actuated the pair of cranes as required. Changes in the production process now necessitated the installation of a third identical crane on the same set of support beams, allowing for very long and heavy trailers to be moved through the factory with the load shared between two of the cranes at any one time. However, the specific crane used in this application was no longer in production. After many years of reliable service, the existing cranes had not nearly reached the end of their lifespan, and therefore it was neither economical nor 20 NOVEMBER 2014 Manufacturers’ Monthly

Resilient gearbox The bridge drives for the new crane were custom-tailored by German drive technology manufacturer NORD Drivesystems.

environmentally sustainable to replace them. Modular Cranes needed to find a practical and economic alternative design solution to match the performance and synchronisation characteristics of the existing onsite cranes.

Customised drive configuration For the new overhead crane’s two bridge drives, Modular Cranes sought the expertise of German drive manufacturer NORD Drivesystems. Annie McDiarmid, Operations Manager at Modular Cranes, said, “We were faced with the problem that our new crane needed to travel exactly in synch with the existing

“

Operation is comfortably carried out with the same remote control pendant – no additional configuration is required... onsite cranes. NORD Drivesystems offered us a solution that met our customer’s budgetary requirements

NORD configured the gear units using its Unicase helical inline gearbox series which, providing a wide torque range from 10 to 26.000 Nm and ratios from 1.35:1 to 14,340.31:1, enables unique flexibility in the configuration of the optimal drive train for any task and mechanical setup. The Unicase housing design – with its one-piece machined construction including integrated flange and bearing sets – provides long and trouble-free operation and allows for a highly robust solution that can withstand extreme loads. NORD produces very large industrial gear units with 242,000 Nm output torques in a single-piece cast-iron housing.

Adaptable electronics To solve the synchronisation problem, NORD recommended a motor-mounted frequency inverter for straightforward installation that manmonthly.com.au

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The 22 m wide overhead cranes run on beams that span the entire length of the factory, all three are synchronized for speed and ramp times.

makes shielded cables unnecessary. The manufacturer has a comprehensive drive electronics program with graded performance and functional range options that allow users to choose suitable compact solutions with the exact features they require for any given task, thereby optimising budget and resource use. The SK 205E inverter selected for this application realizes drive functions such as ramp-up: the inverter ensures the motor starts slowly with high torque, thereby protecting the mechanics from the extreme loads that are effective when the heavy overhead crane is started from standstill.

An external brake resistor accommodates the regenerative current when the crane is decelerated. The inverter is also equipped with an integral 24 VDC power supply to provide the internal control voltage – therefore requiring only a power connection and no separate control cable. At the completion of the project, McDiarmid commented, “Throughout the process, NORD offered us abundant amounts of support from trained professionals and worked with us to achieve the best possible outcome.” NORD Drivesystems 1300 050 347 www4.nord.com

The economic solution consists of two flange-mounted NORDBLOC.1 geared brake motors, each fitted with an SK 205E frequency inverter and an external brake resistor.

manmonthly.com.au

Manufacturers’ Monthly NOVEMBER 2014 21

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Motors & DRIVES Integrating drives in the information age Technological advances mean that drive technology is now better than it has ever been. However, as Karel Jansen writes, manufacturers need to do their homework if they hope to take full advantage of the latest advances.

ANUFACTURING markets are entering a new digital era that is slowly retiring traditional technologies (See CSIRO’s report on Australian Manufacturing in the Information Age). However, manufacturers want to be able to redevelop their solutions to bring them back in line with new industry standards to make the most of their operational expenditure (OPEX) budgets. Core components of manufacturing production solutions like drives are now housing multiple functionalities, making them faster and more efficient than ever before. Despite the increased functionality and integration, vendors are still experiencing tighter markets with customers holding their budgets close to their chests. to improve Schneider M A Electric’s 0 8 1 4 Altivar _ 0 0 Process 0 _ S is U aMvariable - speed 1 2drive 0 1with 4 - 0 7 - So, 1 0where T 0 9 are : 3there 7 : 0opportunities 8 + 1 0 : 0 0 embedded intelligent services for industrial applications. drive functionality, and what benefits can the

manufacturing industry experience? Variable speed drives provide users control of their processes, enabling them to reduce their energy wastage as well as allowing easier integration with Process Control Systems. As manufacturing operations are rapidly digitising and day-to-day factory functions accelerate, customers need to have solutions that can provide faster turnaround on projects. To meet this demand, vendors are beginning to integrate more functionality into drives that would otherwise typically be supplied as ancillaries and in turn are developing solutions that serve as a packaged function instead of a single use. While new drives improve outputs, inefficient application of drives can still increase energy use and drain budgets, especially as manufacturing

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The pressure from reduced technical enters the age of automation and industries resources inside companies and tight budget scramble to transition their operations to have all contributed to a fall in customer OPEX-based models. While the first reaction confidence over past years and continues to be from users may be to look at how a different one the most significant deciding factors for drive may address energy consumption, an major projects and critical applications. area that is often overlooked is the cost of At this stage businesses are looking for integration of a drive. more than just best-price solutions. HavNewly developed applicative functionaling complete confidence with their supplier ity in drives can help minimise the strain on means that they are able to more comfortably labour costs associated with its operations by forecast their equipment and servicing budgreducing the need for maintenance and downets as risk from cost blowouts is significantly time due to equipment breakdowns. reduced. There are significant differences between a While the functionality and integration of properly installed and managed variable drive drives are rapidly evolving, so are external and one that has been integrated as an afterenvironmental impacts on businesses. Rising thought. Correct application of variable drives labour costs, tighter operating budgets and inconsiders harmonic mitigation, reduction in creased competition from cheaper outsourced radio frequency interference and reduction operations are affecting their confidence. in energy consumption, which then passes Technological advancements and the digition cost benefits to customers and less waste sation of some solutions can help the manumaterials throughout the life cycle of the facturing industry streamline its operations by equipment. reducing overheads like labour costs, mainteEngineered-to-order and partial designed nance contingencies and energy management solutions for drives are becoming increasingly enabling manufacturers to maintain their available for customers during their early competitiveness with other industry. stage tenders due to reduced CAPEX budgets [Karel Jansen is National Drives Business forcing vendors to compete for a smaller pool Manager of Schneider Electric] of contracts. To offset this, customers are seeSchneider Electric ing reduction of internal costs from vendors outsourcing M A 0 5 production 1 4 _ 0 0 0plants _ P I overseas E - in 1 2 0 1 4 - 0 4 - 0 3 T 1 0 : 0 8 : 5 4 + 1300 1 1 369 : 0233 0 www.schneider-electric.com.au order to remain competitive.

manmonthly.com.au

The varnish is a water-based and chromium-free formulation.

Varnish for generators & motors AXALTA Coating Systems in Australia offers a next generation C5 electrical steel varnish - Voltatex 1250V. Part of the Voltatex family of electrical insulation products, the varnish is suitable for use with electric motors, small and medium power tool generators, traction motors, electric vehicles, etc. It is designed to aid the manufacturing process of magnetic cores of electric machines thanks to its excellent slitting, punching and welding properties. Once applied, the surface of the cured varnish layer is a glossy light grey that has improved scratch- and corrosionresistance. It is a water-based and chromium-free formulation as well as REACH compliant which also helps fulfil requirements for reduced environmental impact. Axalta Coating Systems (Australia) 02 8818 4324 www.axalta.com.au

Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2014 23

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MaterialOF THE MONTH The great graphene race Graphene, physically isolated only a decade ago, has the potential to change the world. Brent Balinski reports on what it is, why it’s creating so much excitement, and what it might offer Australian industry.

T’S regularly been said in recent years that there’s a worldwide race going on regarding graphene. There’s excitement from industrialists, academics, miners and others around the atom-thin layer of carbon, first isolated in 2004 by two Russianborn researchers working at the University of Manchester. It’s 200 times stronger than steel and boasts other properties including being the most electrically conductive material (at room temperature) known, incredibly flexible yet harder than diamond, nearly transparent, and impermeable to gases and liquids. But due to numerous difficulties, nobody has really managed to make graphene very industrially useful yet. It’s not for a lack of trying, though. One of the companies spending the most effort to develop graphene electronics, Samsung, had 405 patents related to the material, according to a UK Intellectual Property Office report from 2013. By country, Chinese organisations have more patents than any other, with 2,204, according to a report by UK consultancy CambridgeIP (also published last year). The US followed with 1,754 and South Korea 1,160. A raw count of patents is never a perfect measure, but it gives some indication about who might be interested in the future of the material.

Vast manufacturing potential A patent registered in Australia (as well as in the United States, the European Union and Japan) that shows promise involves making a surfactant free dispersion of the material. Covered in a 2008 paper in Nature Nanotechnology, “Processable aqueous dispersions of graphene nanosheets”, the process has been licensed to Sydney-based start-up NanoCarbon. “I believe that graphene is go24 NOVEMBER 2014 Manufacturers’ Monthly

Graphene is 200 times stronger than steel. ing to be an absolutely important component of manufacturing,” the company’s CEO, Chris Gilbey, told Manufacturers’ Monthly. NanoCarbon aims to initially develop graphene for high barrier films, lithium ion batteries, and water purification purposes. Gilbey believes that there will be a significant need for the nanomaterial, both by itself

and as a part of advanced composites. He admits there are big challenges for NanoCarbon to overcome before it meets its goal of “delivering functionalised SFG graphene at scale” early next year. However, they have an important and incredibly useful technology on their side, he believes. “When you can deliver a sur-

factant-free graphene in aqueous solution you have a platform technology that can deliver an optimum graphene product that can provide very high levels of conductivity as well as strength,” he said. The company has a novel business model and plans to announce implementation partnerships over the coming months. manmonthly.com.au

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Gilbey’s is not the only Australian company that aims to supply graphene in a business-to-business capacity. Others, such as Valence Industries, plan to manufacture and sell graphene shortly. As with NanoCarbon, Valence has strong links with a research institution. In Valence’s case, this is The University of Adelaide, to whose Graphene Research Centre Valence has allocated $800,000 over threeand-a-half years. “The intention there is to make sure, as the globe changes and as new graphene-related products come online, we’re at the forefront of that technological development,” Christopher Darby, the company’s managing director and CEO, told Manufacturers’ Monthly. “So we want to be able to transform ourselves from a producer of graphite products and in order to do that we have to make sure that we are able to be producing new graphene-related M A 1 1 1 4 _products 0 0 0 _ and S C apply H those very advanced manufacturing

skills we already have to produce something in that industry as well.”

How is it made?

GRAPHENEFASTFACTS • First created in Manchester, England in 2004 • China leads the world in graphenerelated patents • Is a two-dimensional layer of carbon atoms, hexagonally arranged • 200 times stronger than steel • The thinnest, most conductive material in the world • Notoriously difficult to make in industrial quantities at a high quality • Thousands of times thinner than a human hair • Additive fabrication with graphene “inks” beleievd to hold great potential • Potential uses include water purification, touchscreen electronics and biomedical implants

As its name suggests, graphene is derived from graphite, which is basically pure carbon. Graphite is found in products including lubricants, brake pads, batteries, and, of course, pencils. The graphene allotrope of carbon is a single layer of atoms, arranged in a hexagonal formation. These layers are clumped on top of each other, held together by weak van der Waals bonds. The bond is so weak the graphene layers can be pulled apart and isolated using Scotch tape and a large amount of patience, a technique used in labs studying the substance. graphite samples, the pair, and those The “Scotch Tape” method is how repeating their method, have been Manchester University physicists Anable to isolate tiny, though high-qualdre Geim and Konstantin Novoselov ity samples. first isolated graphene in 2004. Prior Geim and Novoselov’s efforts won to that, it had been known - in theory 1947. 1though 2 0 not 1 4 physically - 1 0 - 0 -9since T0 8 : 3 7 : 5 them 8 + 1the 1 :Nobel 0 0 Prize in Physics in 2010. Through repeated cleavage of

Samples made in this way are excellent for study purposes, though the method is labour-intensive, not scalable, and therefore unsuitable for industrial purposes. Other, more scalable methods include chemical vapour deposition (CVD). CVD involves growing a layer of graphene over catalytic foil heated to around 1,000 degrees Celsius and using methane gas. It can produce graphene, in larger samples and more cheaply, though these aren’t perfect. “It’s not a single crystal,” Professor Michael Fuhrer an ARC Laureate Fellow at Monash University, explained to Manufacturers’ Monthly. “There are nucleates on the metal in different places and as these grains grow together it tends to stitch together.” The grain boundaries create issues of electrical resistivity and tend to be more reactive. Then the material will tear as it’s removed from the substrate.

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manmonthly.com.au

Manufacturers’ Monthly NOVEMBER 2014 25

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MaterialOF THE MONTH The most scalable approach for large quantities of graphene, said Professor Gordon Wallace, the Executive Research Director at the ARC Centre of Excellence for Electromaterials Science (ACES) at the University of Wollongong, is solution processing. Wallace was part of the team that created the surfactant-free process licensed to NanoCarbon. Solution processing is, “Basically where we’re taking graphite and expanding it, or basically blowing it apart, into individual sheets of graphene oxide, which is then subsequently reduced to graphene,” he told Manufacturers’ Monthly. “So there’s a number of steps involved in that and you can trace this right back to the actual source of the graphite from the mine.”

Going to the source The quality of the graphite source material has a huge bearing on the quality of the end product. Australia’s graphite deposits were last year estimated at 969.59 kilotonnes (Economically Demonstrated Resources). This is all in SA and WA. Australia’s only currently operating graphite mine, Uley at South Australia, was put in care and maintenance in 1993. Valence Industries, the mine’s owner, listed at the beginning of the year and announced that production of graphite would recommence. The University of Adelaide has been using graphite from Uley for two years in graphene production. The high purity of the resource, which has been extracted as 38 per cent graphitic carbon, is highly amenable to that purpose, said Darby. “It links in with this fantastic material that’s being treated by geological ages that’s very, very pure and very, very unique to this graphite region,” he said.

What will the killer app be? There are some ideas about where graphene might be commercially useful, once problems around quality, quantity and price are solved. Flexible electronic touchscreens seem like a neat match for graphene’s special conductivity and transparency properties, and are expected within the next few years. Samsung, 26 NOVEMBER 2014 Manufacturers’ Monthly

Bagged graphite (a precursor material to graphene), made by Valence Industries.

as mentioned earlier, is very much on the task. “[But] I gather that the issues that they are running into are many of the issues that I just mentioned,” said Fuhrer, who added that ways to impart a charge (doping) while retaining the material’s unique properties still remain challenging. “Graphene’s an interesting material and we’re looking for where the interesting and different properties can be applied and I think the answers aren’t quite known yet [laughs].” Wallace’s team at ACES has made progress with futuristic medical processes, including in bio-composites. “These are composites of graphene with biomaterials that are capable of sustaining and supporting living cell growth – for example in

implants for tissue regeneration,” he explained. “The other areas of applications that have benefited from the core fundamental advances are in energy storage, we’re able to make very high surface area electrodes, for batteries and capacitors, that have benefits for conventional energy storage systems, but there are additional benefits with graphene: the mechanical properties of it are such that you can make a range of flexible or wearable energy storage systems for medical applications or preparing autonomous devices.” Despite all the possibilities, a commercially successful “killer app” around graphene has yet to be seen.

Potential for Australia The global race to make something

out of graphene is well and truly on. Consider that a year ago the European Commission announced a billion Euros to fund the Graphene Flagship initiative: a decade worth of graphene R&D involving 17 countries and 76 academic and industrial research groups. Clearly this is a major endorsement of the possibilities the tricky material might offer. Australia has a chance to get on board, says Wallace. “We do have the chemistry and the materials science expertise and we’re fortunate to have, at the other end of that, people that are capable of commercialising devices and structures in the composites area for engineering applications right through to the energy and the medical bionics areas,” he said. Gilbey believes that developing technology around graphene and introducing this into industry will be critical for advanced manufacturing. “Advanced manufacturing is about novel materials, I think,” he said. “So I don’t see how you can really develop the potential of advanced manufacturing [without it], and I’m thinking in terms of additive manufacturing as well as the use of materials that provide new kinds of functionality to those things that we’re quite familiar with.” There is reason to have some hope, believes Wallace, but the window of opportunity is closing quickly. According to the electromaterials expert, the future belongs to those who can best handle the task of aligning a pipeline including the mines, the researchers, and those with the commercial nous. It won’t be easy, he concedes. “I think in Australia we have an opportunity to do it, and there are graphite mines and there’s interest in opening up other graphite mines,” he said. “Our challenge will be can we be the most nimble team on the planet in terms of aligning those skills and getting it out of the ground and into devices and structures in a manner which is economical but retains all of these wonderful properties of the nanostructured components that we find in graphene in the nano world.” NanoCarbon www.nanocarbon.com.au manmonthly.com.au

MA1114_000_TOR

2014-10-08T15:15:27+11:00

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Welding Local company welded to success Common sense management and a strong focus on training are just two of the key reasons for a South Australian welding company’s remarkable success. Alan Johnson reports.

HILE many perceive Australia’s welding/fabrication industry as being on a slow downward spiral, Smart Fabrication, headquartered in Port Adelaide, is dispelling that myth with an average growth rate of over 50% a year, and no debt. The fast-growing, dynamic engineering and specialist steel fabrication company, which started trading in 1999, has more than quadrupled its revenues from $1.6m per year in 2007, and is currently on track for another record year, having recently posted its best quarter in the history of the company. The company employs over 65 people across a variety of trades. The company’s founder and MD, Simon Kennedy, puts this remarkable success down to a number of reasons. “It’s not down to just one thing, it’s like any good recipe it takes many ingredients to make a good cake.” “But one of the most important areas for me is looking after all the people involved with the business, and that includes our clients, suppliers and employees and treating them very fairly and with respect, making it fun to do business with us at the same time.” “We also offer our workers a lot of reward and recognition. If our workers go home happy, they will come to work the next day happy and do a good job,” he said. While admitting that the quality of a weld is not necessarily down to the technology, Kennedy has invested in good quality machines. “We have a full range of welding machines, with the latest pipemate dual welders here. I also have inhouse welding inspection and supervision capabilities here. “I have also employed one of the gurus in the welding industry, Kerry Humphreys our Quality Manager, who is probably the most talented welder in the state, and a great teacher. He works closely with our

28 NOVEMBER 2014 Manufacturers’ Monthly

The company has nurtured a culture of continuous improvement through identifying “progressive” as one of the organisation’s core values.

apprentices to improve their welding skills.” Kennedy says the company also invests heavily in R&D, looking at new technologies and automation. “We put a lot of time and energy into R&D and we are always looking to improve our productivity levels. “We also develop a lot of our own machinery to be more efficient in our processes. There’s a lot of technology out there that anyone can purchase, but you need to put a little bit of your own input into it to really make it work,” Kennedy told Manufacturers’ Monthly. The company, which took out this year’s Endeavour Award for Business Transformation, has also developed a Lean Continuous Improvement Plan and Schedule to prepare the organisation for the implementation of a systematic lean program with the assistance of an experienced consultant.

High weld pass rates Kennedy, who was a boilermaker and a first class welder for over 20 years, working at the Australian Submarine Corporation (now ASC) and as a

first class pipe welder, takes pride in the company’s high weld pass rates, saying it’s down to both the quality welding equipment used and the skill of the actual welder. While working on the Moomba Compression Station project for example, Smart Fabrication welders completed 3364 welds on the project with only 26 welds failing (0.77%) to comply with the nominated standard AS4037 Class 1. (The TWI states a 1.7% to 3% failure rate is the average for welding piping systems). Kennedy’s advice to other manufacturing companies is to never cut back on training, saying it’s training that puts you on the top shelf. “People often ask me about the cost of training, and what happens when that person leaves? But I ask them what happens if you don’t train them, and they stay, what’s the cost in that? The company puts the entire staff, from Kennedy down to the first year apprentices, on all the relevant training courses. “We also give our apprentices an opportunity in the first couple of

years of their apprenticeship to start learning.” Kennedy admits it can be costly to train guys up in the beginning. “But I find the young guys respond well when given an opportunity to have a go like the experienced tradespeople in the industry.” He explained that most welding apprentices would have to wait until they finished their apprenticeships before looking at first class welding pipes, saying most years his apprentices win awards at trade schools for being outstanding. “There are a couple of reasons for that: we only employ top class welders, so the benchmark around here is very high, and we give them a lot of opportunities.” Kennedy explained that the company has nurtured a culture of continuous improvement through identifying “progressive” as one of the organisation’s core values, measuring each employee’s behaviour against that expected of them and linking it to remuneration reviews as well as the organisation’s reward and recognition program. “And importantly we don’t make mistakes here, we make opportunities to learn. We have an open attitude, if

Companies should never cut back on training, it’s training that puts you on the top shelf – Kennedy. manmonthly.com.au

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Fixturing tables

Oil & gas industry now a key focus for Smart Fabrication. you have done something wrong, this is an opportunity for learning. We all make mistakes, it’s all about encouragement and a pat on the back when they do a good job.” One of Kennedy’s catchphrases is ‘we don’t do average’. “My father told me you don’t need to be overly fantastic to be outstanding, you only need to be one or two percent better than average. Everyone is average and no one notices average. To be really good all you need to do is try that little bit harder.” “Everything we do here, we aim to be five percent better, that includes how we package a job, how we deliver it, all the little things we do.” “Often it’s the little things we do that make a big difference. There’s no one big thing that is going to make a company great,” he said.

Service Kennedy explains that most welding processes take about the same amount of time no matter which company is doing it, so he now tends to focus on the company’s service side. “Everything we do needs to be 100%. With quality you can’t improve on 100%, and basically the industry dictates our pricing structure,” Kennedy said. The company, which works in a variety of industries including water, defence and mining, recently manmonthly.com.au

expanded into the demanding oil & gas industry. “Working in the oil & gas industry has its own challenges; everything needs to be 100% to start with, plus you need to deliver on time, every time. In addition to that you need to have a quality system and quality personnel who are on their game 100% of the time, because the quality documentation is almost as demanding as the welding and fabrication itself.” Today, Smart Fabrication’s capabilities include pipe spool fabrication (carbon/stainless/duplex), pipe skid fabrication, pressure vessel fabrication, structural works, aluminium work, blast and paint and site work/ installation. The company now boasts a 33,500sqm footprint across two sites; 9,5000sqm of undercover workshops, multiple sub-arc welding machines, in-house NDT and hydro-testing bays and a 170m water frontage at its Port Adelaide headquarters. [Alan Johnson is Manufacturers’ Monthly’s former editor. He has researched and written about all aspects of the Australian manufacturing sector for over 25 years.] Smart Fabrication 08 8240 1876 www.smartfab.com.au

WITH accuracy in welding, fabrication and assembly a pressing issue for Australian industry, Leussink’s demmeler fixturing tables provide tight tolerances. The heart of the system is a solid steel block-like work table designed to provide a sturdy platform The heart of the system is a solid steel block-like work table for mounting welddesigned to provide a sturdy platform for mounting weldments ments with a variety with a variety of angles, blocks and accessories. of angles, blocks and accessories. can position and clamp in any horizontal or The work tables are made of heavily vertical plane. ribbed, high tensile, high strength steel, Specialised positioning and clamping machined to very tight tolerances to ensure bolts are mounted through the holes and stability and flatness and are designed slots and when engaged, generate up to 3t to be used alone or bolted together to of clamping force and will resist up to 25t accommodate larger work pieces. of shear force. Each work table is made with a grid Two modular table versions are availpattern of 28-mm mounting holes, spaced able: the D16 and the D28, each one on a 100-mm grid, across the face and coming with a work table featuring a four sides of the table. If closer spacing is precision grid pattern of bores on top and required, sub plates with a double-density side machined surfaces for positioning and grid pattern also are available, with a grid clamping connecting elements for assemspacing of 50 mm x 50 mm for mounting to bly components. the main tables. Leussink Engineering An assortment of structural compo02 4260 7777 nents and fixturing elements are used to www.leussink.com.au construct tools with this system, which

Passive-style welding helmet/face protector FABRICATORS at all levels can now get basic, consistent face and eye protection with Lincoln Electric’s new economically priced, fixed-shade Industrial Passive Helmet. The welding helmet/face protector comes in a matte black finish, with a fixed Shade-11 lens, which is considered an all-purpose shade for most welding applications. The helmet features ratchet headgear and meets ANSI Z87.1 and CSA Z94.3 standards. Described as an affordable option for students, it also includes a decal sheet for customising the shell to fit the user’s personal style. Lincoln Electric 1300 728 720 www.lincolnelectric.com.au

Consistent eye and face protection at an economical price. Manufacturers’ Monthly NOVEMBER 2014 29

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Welding How is welding safety looking? ‘A single workplace injury is one too many’ has become a truism. Nevertheless, with this very thought in mind, RJ Fowles, N Bothma and E Butterfield take a critical look at gas equipment use and maintenance in Australia.

N July this year, a new Code of Practice: Welding Processes came into effect in NSW. The continued promulgation of this particular Code to improve workplace heath and safety, and a recent incident involving the use of gas equipment, brings into question whether we as industry can improve on what we are currently doing. An incident involving the use of gas equipment in a cutting application came to light recently in Australian industry (fortunately it did not result in an injury). The incident investigation process initially indicated that the cause of the incident was the use of faulty equipment, but was this really the root cause? The incident served to focus significant attention onto gas equipment for normally routine welding and cutting tasks.

Example of a date stamp applied to a blowpipe handle. In particular those responsible for managing workplace health and

safety paid close attention to this incident.

Table 1: Recommended guideline from AS4839 for gas equipment maintenance. Maintenance Equipment

Weekly (if in constant use) or before every use (to be performed by the operator)

As nominated (to be carried out by a technically competent person)

Refurbishment or replacement intervals (equipment condition determines whether refurbishment or replacement is required.)

1. Regulators (including their integral protective devices)

According to the manufacturer’s instructions including – visual examination to determine suitability for service (eg. gas, pressure rating, damage); condition of threads and sealing surfaces; and oil or grease contamination. Leak test all joints at working pressure.

Six monthly: Functional test to ensure the correct operation of internal components.

Manufacturer or supplier recommendation, but not exceeding five years.*

2. Flashback arrestors and other external devices (including nonreturn valves)

Visual examination to determine suitability for service (eg. gas, pressure rating, damage); condition of threads and sealing surfaces; and oil or grease contamination. Leak test all joints at working pressure.

Yearly as detailed in AS 4603 or following a flashback: Proper functioning of the non-return valves and flashback arrestors. For pressure-activated valves, check that there is no flow in the normal direction with the valve tripped.

Manufacturer or supplier recommendation, but not exceeding five years.*

3. Hose assemblies

Visual examination to determine suitability for service (eg. gas, pressure rating, damage); condition of cover; and threads and sealing surfaces of the end fittings. Leak test all joints at working pressure.

Six monthly: Check for absence of cuts and excessive wear by bending the hose in a tight radius, to ensure reinforcement is not visible.

Determined by the hose assembly condition.

4. Blowpipes, mixers and attachments

Visual examination for damage of the threads and sealing surfaces of the hose connections and the attachment connections. Leak test all joints at working pressure.

Six monthly: Test control valve function. Blank the attachment connections and leak test for internal malfunction.

Manufacturer or supplier recommendation, but not exceeding five years.*

*Regulator elastomers and seals will wear and deteriorate in service and deteriorate out of service. Items stored for one year or over without use should receive inspection as per the annual maintenance inspection. 30 NOVEMBER 2014 Manufacturers’ Monthly

Further investigation into the incident revealed that the equipment may have been faulty, but more significantly that it should never have been used in the first place. Internal corporate standards defining whether equipment could be used and how it should be tested prior to use were inadequate compared with industry defined best practice in the form of AS 4839: The safe use of portable and mobile oxyfuel gas systems for welding, cutting, heating and allied processes and WTIA Technical Note No. 7: 2013-Health and Safety in Welding. The incident investigation demonstrated the importance of following the basic tenements of using gas equipment: regular inspection and maintainance of equipment, and always leak test prior to using. Unfortunately for the employer and the operator of the equipment, these basic elements were not up to the expected industry standard.

Industry standards In most states and territories, the expected industry standard is the Code of Practice: Welding Processes. For specific and detailed guidance, manmonthly.com.au

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reference should be made to AS 4839: The safe use of portable and mobile oxy-fuel gas systems for welding, cutting, heating and allied processes and WTIA Technical Note No. 7: 2013-Health and Safety in Welding. These documents recommend that gas equipment be regularly inspected, tested, maintained and or replaced. Table 1 is an extract fromAS4839 that recommends intervals to be applied to gas equipment. Replacement or refurbishment intervals of gas equipment can easily be determined by those responsible for maintaining the gas equipment from date stamps applied by the manufacturer.

Observations on gas equipment The only acceptable standard for the number of incidents involving gas equipment should be zero, but is this possible when operators are found using gas equipment that is clearly unacceptable even to the lay person? Random observations have shown that there are operators who actively use gas equipment that

manmonthly.com.au

Gas hoses in this condition are an accident waiting to happen. would never be considered safe. These rogue operators demonstrate that the safety message is not penetrating all industry levels, or is being ignored. It also demonstrates that operators, business owners, managers, and members of the public are being

exposed to unacceptable levels of risk through negligence, or ignorance or both.

What can industry do? Every owner, operator, and manager should continue taking ownership of the duty of care regarding the safe

use of safe gas equipment by ensuring the application of best practice in every workplace or work site. Suppliers of gas equipment should also develop and share existing resources with industry that promote best practice through all available mediums and channels to the market. The public, as customers of service providers who use gas equipment, should also refuse to allow operators to operate clearly dangerous equipment in their homes or businesses. This may require the pooling of resources to promote a public awareness campaign. One incident is one too many. Best practice for managing gas equipment applies to all industry segments, whether large international multi-site corporations involved in fabrication or site work, to small owner-operated businesses such as plumbers or air conditioning service providers. [RJ Fowles, N Bothma, and E Butterfiled work for BOC Australia] BOC 131 262 www.boc.com.au

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Welding Additional safety elements for welding inverters

Welding management system KEMPPI Australia has launched the Arc System 3 welding management system, specifically developed to improve welding quality management, operational productivity and reduce cost and risk. Using a suite of software based solutions, the system offers a choice of modules that work together to capture ‘big data’ welding information. This information allows users to more effectively monitor, control and manage the quality and efficiency of their welding operations. The system applies to single and multi-machine, and multi-site operations, managed from a single central welding co-ordination point. The system can trace each weld; and record welder qualifications, welding procedure specifications (WPS), and all materials and operational welding parameters. Once welding parameters are set, any deviations by the welder are identified in real-time and can be altered to eliminate the need for rework. Kemppi Australia’s MD, David Green, described the systems as an invaluable toolbox of solutions that supports welding operations to become significantly more efficient and productive. “The system can automatically collect and analyse big data information so that users know at a glance how the welding operation is proceeding and if any adjustments need to be made. “Plus, it can collate welding documentation automatically to significantly reduce the time and cost associated with post welding administration,” he said. Modular in nature, the system can be tailored to each organisation’s specific requirements, allowing features such as NDT, welder maintenance and power source calibration/ validation scheduling to be built-in as required. The system also supports the operation of formal

The system can automatically collect and analyse big data information so that users know at a glance how the welding operation is proceeding and if any adjustments need to be made. welding quality management systems, such as IS0/AS 3834-2. “Up to now, welding processes in critical operations have relied upon the integrity of the welder plus retrospective welding inspection to guarantee welding quality. The Arc System 3 revolutionises this; factually confirming that all welds are as they should be,” Green said. Kemppi Australia 02 8785 2000 www.kemppi.com.au

CIGWELD’S new MS (mining specifications) Transarc and Transtig welding inverters incorporate additional safety elements. Safety features of the 130i MS, 170i MS and 170Ti MS inverters include a braided and reinforced supply lead to eliminate electric shock from a damaged power cord; heavy duty, IP66-rated and compliant supply plug which can screw into place and form a weather proof seal against damp, dirt and grime; and an encased insulated plastic housing that eliminates arc strike hazards. The IP23S rated inverters are compact for easy transport and use in confined spaces, and feature intelligent cooling systems, designed to prevent units from overheating while keeping external contaminants away from the inner workings. Other features of the inverters include a “deadman” switch, which ensures that voltage at the electrode before starting is zero volts; and a VRD - Voltage Reduction Device, which reduces the open circuit voltage when not welding to virtually eliminate the potential of electrocution. Complimentary equipment available from Cigweld includes colour coded regulators for the safe control of gas pressures and easy gas identification; auto darkening welding helmets which respond to changing light conditions, offering eye protection; and flash back arrestors (for use with gas equipment), which prevent reverse gas flow and flash backs from gas travelling upstream into the torch or hose (preventing an explosion). Cigweld 03 9474 7352 www.cigweld.com

Engine-driven welders/generators LINCOLN Electric has introduced two new models to its industrial Vantage engine-driven welder series. The Vantage 600 SD and Air Vantage 600 SD models are each equipped with a Tier 4 Final (T4F) compliant Deutz turbo-charged

Both models can produce 600A/40V at 60% duty cycle and 575A/43V at 100% duty cycle. 32 NOVEMBER 2014 Manufacturers’ Monthly

diesel engine that meets EPA diesel fuel emission standards. Designed for heavy industrial applications, both engine-driven welders are engineered to handle a variety of processes including stick, TIG, MIG, and flux-cored wire welding, as well as arc gouging. The welders have been re-engineered using a new digital platform, Waveform Control Technology, which is designed to deliver smoother arc characteristics, faster arc response and improved pipe welding capabilities, including reduced spatter. New pulsing capabilities are designed to provide improved arc control for out-of-position work and can be used to reduce heat input, resulting in less distortion of the base material. Both models can produce 600A/40V at 60% duty cycle and 575A/43V at 100% duty cycle. In addition, each unit is capable of delivering up to 12,000W single phase or 20,000W three-phase, 120/240V AC generator power. Lincoln Electric 1300 728 720 www.lincolnelectric.com.au

Features of the IP23S rated inverters include a braided and reinforced supply lead to eliminate electric shock from a damaged power cord. manmonthly.com.au

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WomenIN INDUSTRY AWARDS Celebrating the rise of women

HE Women in Industry Awards 2015 have officially launched. Women are consistently achieving greatness and excelling in their chosen fields within the mining, engineering, manufacturing and process control industries and we think their talent should be acknowledged. Manufacturers’ Monthly has teamed up with Australian Mining and PACE to acknowledge women who have achieved success through their invaluable leadership, innovation and commitment to their sector. The only awards program of its kind to encompass mining, manufacturing and engineering, it also

encourages the industrial world to raise the profile of women working in the differing sectors by embracing diversity and flagging clear paths for the next generation to follow. Editor-in-chief of Cirrus Media’s industrial publications, Cole Latimer, said the program was important in recognising the contributions being made to the changing face of industry. To nominate, just head to womeninindustry.com.au and follow the prompts. Introducing the 2015 Women in Industry Awards sponsors:

Platinum Sponsor After the success of the 2014 inaugural Women in Industry Awards, Pacific Merchandising has upped its commitment to the event. The company is the Platinum Sponsor for 2015. Recognising excellence amongst women in male dominated industries is a great way to provide inspiration and leadership for change. Pacific Merchandising looks forward to wonderful entres from some of the innovative women out there in the field. Pacific Merchandising is an experienced industry specialist supplier of promotional merchandising to Mining, Oil & Gas, Construction and Transport and Australian Trade Unions. A one-stop shop with expert help from sourcing to art design, decoration to manufacture, and gift packaging to freighting, the company specialises in leading global brands and wholly Australian craftsman designed and manufactured goods, such as custom belt buckles (and keyrings). Pacific Merchandising 1300 88 77 95 www.PacificMerchandising.com.au

Excellence in Mining Mining Machinery Developments Australia ( MMD Australia) is a designer and manufacturer of material processing equipment used in varied types of surface and underground mining operations worldwide. In particular, MMD extended the technology of mineral degradation with the original development of low profile high capacity compact sizing machines in 1978. MMD Australia is an equal opportunity employer which encourages women to join, not only the mining industry, but the varied industry sectors in Australia and abroad. Today the company celebrates the excellence women bring to our environment and encourage all similar organisations to join it. MMD Australia 07 3193 2800 www.mmdsizers.com

manmonthly.com.au

Excellence in Engineering ABB is one of the world’s leading power and automation engineering companies. It provides solutions for secure, energy-efficient generation, transmission and distribution of electricity, and for increasing productivity in industrial, commercial and utility operations. Ultimately, the company helps customers meet their challenges with minimum environmental impact and with safety and quality as the highest priority. ABB’s portfolio ranges from light switches to robots for painting cars or packing food, and from huge electrical transformers to control systems that manage entire power networks, mining operations and factories. Its products and solutions serve a number of industries including mining, oil and gas, manufacturing, paper, transport, marine, consumer, automotive and building industries. Employing 145,000 people across 100 countries, including nearly 2000 people in Australia, ABB understands what it means to provide a workplace that is career enriching and culturally safe. The company encourages individualism, values diversity and understands that culture forms part of everything it does. ABB in Australia is proud to support the Women in Industry awards and to recognise and acknowledge the value of a diverse workforce. The company looks forward to playing its part at the event and wishes the best of luck to all participants. ABB Australia 1800 222 435 MA 1 1 1 4 _ 0 3 3 _ O X E 1 2 0 1 4 - 1 0 - 1 new.abb.com/au 6 T1 5 : 2 6 : 2 4 + 1 1 : 0 0

Ox Engineering Metal Development Division 5D Metal Processing

Introducing Ox’s New 5-Axis Tube Laser

Capable of cutting up to 400mm Square Tube & 25mm Thick Angle, I-beam & Parallel Channel Ox Engineering also own a 9000x3100mm Flatbed 3-Axis CNC Laser along side a 10,000kg CNC Bender placing OX the forefront of Australian Manufacturing “5th Dimension Engineering” Ox Engineering Pty Ltd A.B.N 63 146 100 030 www.oxmetalproccessing.com.au Terry@overexposure.com.au

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Safety Australian access control system wins global acceptance The inexpensive AccessPack technology claims to reduce both OHS and business risk associated with industrial equipment use.

N Australian access control system is winning the support of leading companies around the world. The inexpensive AccessPack technology reduces both OHS and business risk associated with industrial equipment use. First aimed at high risk equipment, it is now being installed on a huge variety of equipment across a range of industries around the world due to its simplicity and versatility. Existing users of AccessPack include companies such as Schlumberger, BHP Billiton, Rio Tinto, FMG, Weatherford, UGL, Komatsu, Hitachi, Disney, Rolls Royce and Whiting Corporation. AccessPack, from Western Australian company CASWA, uses smart card technology to prevent unauthorised operators from using high risk or critical equipment. This improves OHS outcomes by requiring users to have current and appropriate ‘tickets’ including qualifications, accreditation, training and/

AccessPack has the ability to track when maintenance or servicing is due.

34 NOVEMBER 2014 Manufacturers’ Monthly

or inductions in order to operate the equipment. It records who uses the equipment and this creates and maintains a culture of operator accountability and typically improves availability as authorised users instinctively take greater care, says CASWA. It also provides HSE staff with access to information required for effective incident investigation and proactive training needs analysis. AccessPack is radically different from typical access control systems that are designed to prohibit use by merely restricting perimeter access. Not only do these systems need expensive communications infrastructure to work (between the control point and a backend computer), once people have passed security, there is typically nothing to actually stop them from operating any individual machine they can get their hands on. “AccessPack however, is fitted to the actual device you want to manage. So it will only operate for indi-

Paul Kelly drew on a lifelong interest in developing rocket flight control systems to form a technology company with a global safety and reliability agenda. vidual persons that have been authorised to do so, and only for the period that this authority is valid. Machines will simply not start for anyone else,” says the technology’s developer, Paul Kelly, Managing Director of CASWA. Safety and environment benefits “Controlling devices individually also enables us to tackle the difficult part of the HSE equation – the people part. This is the bit that is typically ignored because, let’s face it, changing people’s behaviour is really hard. Maintaining it is harder still. “AccessPack logs authorised use and thus achieves behavioural change by merely providing the means by which people can be held accountable. This change will often stay with the operator when they then use other equipment. It’s cultural change you can buy off the shelf.” “Also, because it doesn’t need rely

“

The system prevents unqualified personnel from being pressured into using hazardous equipment by time-stressed supervisors… on any communications system to operate, it can be installed quickly and inexpensively on a wider range of equipment. “With AccessPack, you can finally control access to mobile and battery powered equipment that isn’t bolted down and can easily wander in and manmonthly.com.au

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out of Wifi or 3G range,” says Kelly. This unique feature has allowed AccessPack to become a universal solution for all types, makes and models of equipment, he says. Organisations are now finally able to employ a single access control technology across their entire operation, with only one associated management system. The range of equipment commonly fitted with AccessPack includes cranes, production critical machines, hydraulic power packs, lathes, presses, CNC plant and breakout machines, as well as vehicles such as forklifts, diggers and elevated lifting platforms. The system can also replace most logbook controlled cabinets or rooms by fitting an AccessPack to an electronic safe or door. There is also no limitation to the number of units or different equipment types on a site. Installations can be a single machine on one site, a type of machine across multiple sites, or a total enterprise solution for all types of critical or hazardous equipment. It is infinitely scalable without incurring any sunk cost along the way. “Most importantly however, our hardware is simple and hassle-free to use. After you fit an AccessPack to a machine, the operator just replaces pressing a start-switch with swiping a card. Thus we don’t get much push A 0 users,” 8 1 3 _says 0 0 Kelly. 0 _ KThe E Rsys-backMfrom

AccessPack reduces both OHS and business risk associated with industrial equipment use. tem also prevents unqualified person- condition and further ensuring operators’ safety. Equipment can also be nel from being pressured into using tagged out if this is required for any hazardous equipment by over-eager reason, or if mandatory maintenance or time-stressed supervisors. “So it’s intervals are not done in the required win-win for everyone.” period. In this mode, no operator, cerOther features of AccessPack tified or otherwise, can physically use include the ability to track when the equipment until it is safe to do so. maintenance or servicing is due, thus 1keeping 2 0 1equipment 3 - 0 7 - in 0 9 T 1working 0 : 3 3 : 3 2 + 1 0 : 0 0 Administration is simple. A secure good

web interface enables access rights to be granted or changed using a few drag and drop actions. Recently, CASWA signed a license agreement with the Whiting Corporation, a major manufacturer of overhead cranes, foundry equipment and rail maintenance lifting equipment in the US, for distribution throughout North America. Whiting Corporation’s Product Director Joel Phelps says: “The technology is brilliant. It is simple to install and use and is already proven in service in some of the most challenging markets and physically challenging locations on earth. From Australasia, Asia, Africa and Russia to Western Europe and the US, AccessPack is proving itself to be the Seventh Sigma of excellence in process improvement. “We love it here because it pays for itself by easing compliance with safety regimes. AccessPack also helps to eliminate downtime by empowering workers to take responsibility for the assets they use. Quite apart from saving compliance headaches and avoiding downtime – which are major issues here – it prevents accidents from misuse of fixed and mobile plant that can kill people.” CASWA 08 9277 0900 www.caswa.com

KERRICK...the quality is built in for powerful performance

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Manufacturers’ Monthly NOVEMBER 2014 35

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Safety Explosion gets safety message across Australian switchboard manufacturers’ peak body NESMA has driven home its world-class safety message by testing to destruction a switchboard assembly to show what can happen when best international standards are not followed.

HE NSW Chapter of The National Electrical Switchboard Manufacturers Association (NESMA) demonstrated the destructive effects of arcing at its recent seminar presentation when it deliberately introduced excessive faults of up to 50 kA into the assembly at the Ausgrid Testing and Certification facility in Lane Cove. The demonstration followed an address by Norman Disney & Young Director Rowan Peck on proposed changes to the AS/NZS 3439 series of standards for electrical switchgear assemblies, which are in the process of being updated to align with the new IEC parent standard series 61439 and to bring local standards more closely into line with the latest world standards. The IEC 61439 series, developed over several years, is currently being discussed with the industry and is proposed for adaption and incorporation into local standards next year. “Australasian switchboard manufacturers are already among the world’s best in observing safety and engineering standards, and this demonstration was intended to show why they are so scrupulous,” said NESMA NSW Spokesman Mark Betcher.

NESMA went to extraordinary lengths to drive home its world-class safety message – it exploded a switchboard assembly.

“For switchboard users – which include virtually all industrial, commercial and residential facilities – we wanted to give a clear demonstration of what can go wrong when a switchboard is not manufactured to the relevant standards.” Key differences between the previous AS/NZS 3439 and proposed AS/ NZS 61439 standards series outlined by Peck included: • The use of more comprehensive and more demanding design verifications, to replace the previous type

testing concept. Every assembly to 61439 must be verified across 13 characteristics, using a suite of options covering testing, derivation from a tested design, or for limited conditions assessments using design rules with built-in safety margins. • Restricted conditions under which switchgear devices from a verified assembly can be substituted with alternate make or model devices. • The addition of a Guide for Specifiers (Part 0), which provides a summary of the various character-

istics and options for a switchgear assembly, and explains why a choice of one over another would be made. • A table of items to be agreed between the assembly manufacturer and the end user, which can be completed by a user or specifier to cover all of the possible options and choices. This table enables greater consistency across the electrical industry in selecting the requirements for a particular application. • For larger switchgear assemblies, Forms of Separation are more clearly described through the use of example arrangements, and higher Forms of Separation (3B, 4A, 4B) now mandate the separation of external conductors from busbars for increased safety where there is a need for certain maintenance to be carried out on assemblies when partially live. “The adoption by Australia and New Zealand of the updated IEC 61439 series will bring local practice in line with world’s best practice in electrical switchgear assembly safety and performance,” said Peck. NESMA 02 9979 6499 www.nesma.org.au

Killing welding fumes – one puff at a time WeldinG fumes and gases are very dangerous – from a chemical point of view, most welding fumes comprise fumes from chemicals such as zinc oxide (ZnO), magnesium oxide (MgO), galvanized steel, Chromium and Cadmium. In fact, stainless steel electrodes may contain up to 26 per cent chromium and 21 per cent nickel. Manganese as high as 14 per cent may also be present in certain types of steel electrodes, for example, high-manganese hardfacing electrodes. High-chromium hardfacing electrodes may contain up to 30 per cent chromium, present as chromium metal and chromium carbides. One way to ensure workers are not breathing in these harmful and highly-toxic residues is to use a ducting technology like WeldFlex from Eximo, which will ensure any welding fumes you may 36 NOVEMBER 2014 Manufacturers’ Monthly

The ducting technology is designed for use in a variety of industries. generate will quickly and safely be removed from the workplace.

The ducting technology is designed for use in a variety of industries including those where explosion issues and safety are paramount including the petroleum, chemical, paint, fertilizer, solvent and food industries. It is a lightweight PVC duct which is flame retardant according to DIN 4102. Its applications include air-conditioning and suction of air, welding fumes and light dusts and it offers a temperature resistance of up to 100° C. The ducting is self-extinguishing, highly flexible, has an extreme helix-like PVC structure and is available from 52 mm to 505 mm in diameter. It is available ex-stock and can be delivered anywhere in Australia. Eximo 02 9757 1233 www.eximo.com.au manmonthly.com.au

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The key to preventing electrical failure ELECTRICAL failure is a common and easily preventable problem in many dusty and moist work places. There is often a lot of time and money spent on downtime during these failures. Chemsearch identified the need for a cost efficient way of resolving these electrical issues. The first issue they found in work places was that their electrical equipment needed to be cleaned safely, without opening up the risk of electric shocks or outages. This research drove Chemsearch to develop Lexite NF, a nonflammable aerosol cleaner and degreaser specially designed for electrical equipment. It has a dielectric constant of 5,000V and is non-corrosive. Second, Chemsearch’s research found that equipment needed to be completely moisture free and also protected in order for it to continue to run efficiently. This research led to the creation of NC-123 Extra, which inhibits moisture and corrosion with a flexible, waterproof film that can be easily sprayed on. It can also be applied to wet and dry surfaces, as well as moving M Aparts. 1 0 1 4 _ 0 0 0 _ HAR 1 A steel specialist supplier in NSW was

manmonthly.com.au

having regular problems with operating equipment. A Chemsearch specialist went into their facility and found that their machines were located in an area of extreme moisture and dirt. Because of the location, the internal control cards in their equipment would regularly corrode and fail. Each control card was costing them $1,000 and every shutdown was costing them approximately $8,000 per hour. Since Lexite NF and NC-123 Extra were employed, over the space of a year, the equipment hasn’t failed once. By not having to replace the control cards and not having unplanned downtime the company has saved in excess of $100,000. From general facilities maintenance and cleaning to HVAC, wastewater treatment and system-wide drain maintenance, Chemsearch specialises in keeping operations running smoothly. The company aims to solve critical maintenance problems, reduce labour costs, boost sustainability and increase the life of machinery. Electrical equipment needs to be cleaned Chemsearch safely, without opening up the risk of 1800 2 0 1 4 - 0 9 - 1 5 T1 4 : 5 5 : 1252 0 087 + 1 0 : electric 0 0 shocks or outages. www.chemsearch.net.au

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Automation& ROBOTICS Automating using mobile devices Paperless inspection and servicing systems using Pads and tablets help improve productivity and accountability. Naaman Shibi writes.

HILE automation has become an important aspect of performing inspections servicing and repairs, many organisations still perform ‘paper-based’ inspections, work order and repairs, and subsequently scan the paperwork or manually enter the data into a database or spreadsheet. Many people ask me if a tablet or iPad can be used to digitise and automate the recording of inspections, servicing and repairs. In short, the clear answer is:Yes. Most on_Android M Atablets 0 7 1 4operate _ 0 0 0 ROB (Google) or iOS (Apple) operating

systems and are very similar in terms of functionalities such as battery life, imaging capabilities and durability. A paperless system on tablets should provide information that already exists on paper forms or Excel spreadsheets, and at the same time improve the technician’s ability to access and utilise the data. For example, if a HVAC technician fills out a report providing specific information on a Water Cooled Unit Inspection, the paperless solution application on the tablet should fulfil the 1 same 2 0 1function. 4 - 0 6 - 1 6 T1 0 : 3 9 : 0 3 + 1 0 : 0 0 The technician should be able to A paperless system on tablets can provide information that already exists on paper forms or spreadsheet, plus improve the technician’s ability to access and utilise the data. an established local

Robot Spares is now supplier of robot spare parts and services. Robot Spares is now an established local supplier of robot spare parts and services.

Many parts can be shipped from Robot Spares local warehouse on the same day.

Australian robot users, especially users of ABB robots, finally have an alternative local supply of quality new and exchange robot parts, all with 1-year warranty.

Items not available locally can be dispatched from GRP to Australia and be available to your site within 4-5 days.

Robot Spares holds a comprehensive range of stock and has access to spare parts and consumables for the latest releases as well as older generations robots. Supported by Europe’s largest independent supplier of ABB robot spare parts, Global Robot Parts (GRP), Robot Spares is able to deliver the right part on time and at a competitive price. For further information, please do not hesitate to contact Per Stigsson. Mob: 0414 843 191 Email: sales@robotspares.com.au Web: www.robotspares.com.au

38 NOVEMBER 2014 Manufacturers’ Monthly

With over 30 years experience working with ABB robots, Robot Spares staff have the technical knowledge to deliver expert training and support. Now in its second year of operation, and with a solid base of repeat customers. Director Per Stigsson is confident Robot Spares can compete on quality, price and delivery.

pick from a list of possible choices, using speech to text to add comments or type in information required using the device’s keyboard. Paperless inspection and servicing software on a mobile device makes current, past, and future information accessible and easy to use, and can deliver the following functionalities: • List all information required by technicians to perform their tasks including questionnaires, parts, possible results/outcomes, acceptable threshold values (for collecting field data), etc. • Enable technicians to record recommendations and/or create new corrective tasks. • Produce reports, certificates or invoices as required in the field. • Send the information to the customer and/or the office in real time. • Use barcodes or RFID if required to identify the equipment. • Use the camera to take pictures of defects and ability to annotate the picture in the field.

• Easy access to manuals and instruction on the tablet. Paperless inspection systems on mobile devices can also include validations that allow or disallow data entry, plus they can provide the user with historical information pertaining to previous work on particular pieces of equipment. Paperless application can also utilise the device’s features such as the camera, GPS, RFID and barcode reader, and the clock (for automatic date and time stamp) enabling quick identification of equipment, identify points of entry and exit, improve efficiency, and minimise human errors.

The database (backend) To maximise utilisation and ROI, paperless applications should not be stand-alone. They should be designed from the outset to collect information, display and manipulate information, and transfer information to and from a database seamlessly. The database application should manmonthly.com.au

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provide a variety of operational and management functions including scheduling, tracking, corrective actions, client access, trend and forecasts, management functions, reports, and analysis tools. By using tablets in conjunction with server software, the system can automatically transfer data from the tablet to the database without the need for further data entry or ‘manual’ data reformulation. As well as simplifying repeatable tasks and providing staff with easy to use tools that focus on performing tasks, the system can incorporate mechanisms that focus on exceptions and ensure proper execution of tasks, including automatic listing of activities, reminders, alerts, escalation procedures, and easy access to information, ensuring that inspections, servicing and repairs are performed according to guidelines, codes and regulations.

Finding the right system First, users should determine what they want the system to do, and make sure they understand their current processes and information flow. They should list things that work well within their current process and things that they would like to improve, with a focus on the process and NOT on the software or computers. Users should prioritise potential MA 1 1 1 4 _ 0 0 0 _ A A P _ R improvement areas and describe a

tiple activities such as inspections, short scenario where improvements repairs etc.? can achieve their objectives. For • Does the package enable efficient example, minimising unnecessary execution of activities? For examadministrative tasks such as reschedple, adding a new inspection ‘in the uling inspections, or performing unfield’ should be quick, easy, and necessary data entry by office staff. should require minimal effort. Users should then answer the • Does the solution minimise unnecfollowing questions: Who will use the essary administrative tasks such as system? How computer proficient are reminders and repetitive activities? the users? What are the procedures For example, alerts, automatic for paperwork flow? Will the software quotes, escalation procedures and improve this flow or make it worse? other exceptions should be autoNext users should evaluate feamated. Inspection due dates should tures offered by different paperless be automatically calculated based system providers and compare them on pre-set schedules, etc. to their needs. They should create a • Does it include management funclist of desired features so they can tions, reports, KPIs, queries and compare ‘apples to apples’ without exceptions? getting confused (or blindsided) by • Can the solution help planning and the different vendor presentations. can it highlight problem areas? When reviewing brochures offered Finally, users should determine by vendors or when speaking with the best value and fit, and include in sales people, it is sometimes difficult their evaluation factors such as the to clearly identify the differences ability to tailor a solution to their between the packages. However, needs and the cost of the solution. certain packages offer significantly Maintaining a focused approach better value than their competitors is the best way to select a paperless in terms of functionalities, ease of inspection package that is right for use, and price. a company’s needs, and by researchThe differences between packages ing and evaluating options users can can be highlighted in the following avoid regretting hasty decisions areas: later. • How comprehensive is their system [Naaman Shibi is a paperless inspecand is it easy-to-learn and easy-totion technology expert with Pervidi] use? • How easily does the tablet integrate Pervidi with the desktop/server component, 03 8862 6485 1 2 0 1 4 - 1 0 - 1 3 T1 1 : 3 7 : 1 5 + 1 1 : 0 0 and does the package enable mulwww.pervidi.com.au

2015 APPMA INDUSTRY EXCELLENCE AWARDS

Process automation system INFOR has released Factory Track, a comprehensive manufacturing process automation system designed to help manufacturers synchronise their enterprise plans with plant activities; bridging the gap from idea to execution. Built for the Cloud, Infor Factory Track is said to offer flexible deployment options and a lower total cost of ownership. The system was developed using Infor Mongoose, a rapid application development platform that enables more configurability and ease of enhancements. The system also offers the latest consumer-grade user experience from the shop floor kiosks to handheld barcode scanners. Designed to increase a company’s operational efficiency and improve visibility across the warehouse and the shop floor, the system offers three key modules: • Warehouse Mobility – designed to help organisations simplify inventory management, automate data collection and eliminate errors and inventory write-offs. • Time Track – collects labour time and attendance and provides payroll extracts to feed payroll applications. • Shop Floor – automates production schedule execution, dispatch operations and work centre operations. Infor 02 9021 7100 www.infor.com

2015 Industry Excellence Awards

Recognising Innovative & Outstanding Packaging & Processing Solutions To be held in conjunction with PACKAGING

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30TH ANNIVERSARY

OWNED AND PRESENTED BY THE APPMA

Tuesday 24th to Friday 27th March 2015 Melbourne Convention & Exhibition Centre, Victoria, Australia

SUBMISSIONS DUE NO LATER THAN 30TH OF JANUARY 2015

To access a submission form email appma@appma.com.au or visit appma.com.au manmonthly.com.au

Manufacturers’ Monthly NOVEMBER 2014 39

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Automation&ROBOTICS Automating can keep you ahead of the pack Compac Sorting faced an increasingly competitive global market for fruit and vegetable manufacturing. The company enlisted the help of Rockwell Automation to improve productivity and cut costs.

RUIT and vegetable equipment manufacturer Compac Sorting Equipment has established a renowned, international reputation since it was established in 1984. The company has a track record in the development of leading edge technology and software. As a market leader in the development, manufacture and supply of smart produce handling solutions and equipment to packing operations around the world – Compac’s software and technology is continually under development and improvement to meet and exceed customer requirements. Facing increased competition, Compac needed to improve productivity by reducing time and costs associated with engineering disparate machine components. The company engaged Rockwell Automation and NHP Electrical Engineering Products (NZ) Ltd to help streamline their machine engineering and design capabilities.

Established relationship Compac Sorting Equipment was already using some programmable logic controllers (PLCs) from Rockwell Automation and was familiar with the company and their technology. To improve productivity and maintain their competitive edge, Compac Sorting decided M A 0 2to1 call 4 _ on 0 0the 0 expertise _ D A T of Rockwell Automation together with

Typical control panel for a Compac sorting machine.

pac Sorting to understand their chalNHP to design a solution that would lenges, which included implementing help to reduce time and costs asnew technology and the need for losociated with engineering disparate service machine 1 2 0 1components. 4 - 0 1 - 0 7 T 1 5 : 4 1 : 3cal 1 + 1 1 : and 0 0 support,” said Prasad Nory, industry manager at Rockwell “Together, we worked with ComAutomation. “We then worked together with NHP to design a solution for Compac Sorting centred on how WHEN YOUR SYSTEM LETS YOU DOWN we could streamline their machine engineering and design capabilities Control Systems — When you need an upgrade and / or retrofit ... for equipment destined for New Zealand, Canada and the US.” Servo and VS Drives When you need repairs and / or retrofits ... The solution comprised Computer Touch Screen Panels When you need repairs and / or retroMicro850®PLCs, PowerFlex® 4M and 40 drives and industrial control PLC Programming and Documentation gear. According to Nory, the team For fast, professional service; we work with all major brands; demonstrated the value of the soluSiemens, Allen Bradley, ABB, Emerson (Unidrive and Unidrive tion using Rockwell Automation and SP, Mentor), Mitsubishi, Panasonic, Bosch and many others. NHP technical resources, including Connected Components Accelerator Toolkit and One-stop Sample Call now: 03 9874 7737 ww.datafactory.com.au Shop. They have also started using

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40 NOVEMBER 2014 Manufacturers’ Monthly

Micro820™ PLCs for other smaller equipment applications. One-stop Sample Shop is a Rockwell Automation commercial program; through it, customers receive free product samples to try in their application. The Connected Components Accelerator Toolkit helps OEMs reduce design overheads so they can instead concentrate on making their machine the best in the market. “This is a low risk and easy option for customers to try our component products like small PLCs, industrial control and safety products,” said Nory. “Through these programs, detailed discussions and a successful field trial, Compac realised the value of our Connected Components solution.” According to Baden Crabb, senior electrical engineer at Compac Sortmanmonthly.com.au

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ing Equipment, “It’s been really good working with Rockwell Automation, they support their product by providing plenty of training and support.” “In addition, being able to ‘try before we buy’ was very beneficial, allowing us to see firsthand how the products work and could add value to our solutions,” said Crabb.

Faster machine building OEMs and machine manufacturers are facing a wide variety of technological trends in what is a revolutionary era for industrial automation based in motion control, communications and intelligent vision systems – all of which can significantly help improve machine performance and processes. In particular, the packing sector has gone through a strong technological revolution as new technology provides the ability to offer higher performance and increased productivity. To maintain their position as a global leader in post-harvest solutions, Compac Sorting invests in cutting edge technology to deliver high performance sorting and packing

solutions for the fruit and vegetable industry. The Connected Components Accelerator Toolkit helps companies reduce machine design time by providing guidance for the entire machine control application development. It allows OEMs to concentrate on the intellectual property that produces compelling and differentiated machine features. “The Connected Components Workbench Software is one of the reasons we decided to use the Micro800 series of PLCs; it’s powerful, and code can be written in ladder, function block diagram or structured text,” said Crabb. “The Micro 820s are great for applications with low I/O requirements and one of the very few PLCs on the market that provide great value, delivering Ethernet capabilities and serial modbus control of variable speed drives. The scan time is about three milliseconds in our application which is very fast,” he said. The Connected Components Workbench software offers controller programming, device configuration

On-machine Ethernet switch ROCKWELL Automation has announced the Allen-Bradley ArmorStratix 5700, the company’s first on-machine switch. Built with ruggedised IP67 protection, the Layer 2 managed industrial Ethernet switch can be mounted directly onto a machine or application, reducing the overall size and cost of a control cabinet, and shrinking the machine footprint. According to the company, the ArmorStratix 5700 managed switch advances connected enterprise goals by delivering integration of machine-level data that, due to cost or location, would otherwise remain isolated from businesslevel systems. Using the Cisco IOS network infrastructure software, the switch manages the transfer of production data to enterpriselevel databases and information systems for improved decision making. The industrial switch is designed to simplify the design and development of machine-level networks through configuration and monitoring tools, which can help enable easy setup and diagnostics from within the Rockwell Automation Integrated manmonthly.com.au

and integration. In addition to the many existing function blocks that are available, the software also has advanced encapsulation abilities with function blocks that are simple to create and then use in the graphical function block diagram programming environment. “Micro 820 is gaining popularity among small machine builders, providing a cost effective automation solution. It delivers sufficient control for small applications with Ethernet capability,” said Nory. “The Connected Components Workbench Software being a free download enables the operation and commissioning team to carry a copy with them to site. This increases the flexibility and enables quick response to issues onsite for the machine builders and provides a better service to their end users,” he said.

single software package for configuring the drives, PLCs and safety components. The new solution is module and scalable to meet varying plant requirements. According to Crabb, “The training and support provided by Rockwell Automation and NHP for the Connected Components Workbench Software helped us to convert the code in-house with the help of their support divisions.” Now entirely commissioned and installed at various Compac Sorting sites, the equipment manufacturer is winning more business as a result of the cost-effective solution. “We’ve used this gear on about 50 projects so far and it has allowed us to reduce our engineering time by as much as 80 percent. Having nonlicensed software is a real advantage for us, allowing us to distribute it to all our service technicians around the world. We’re now able to produce conWide-spread benefits trol systems much more quickly with Reduced engineering times together the same amount of staff,” said Crabb. with the flexibility to handle differRockwell Automation ent requirements are the key benefits of the solution. MA 0 7 1 4In_ addition, 0 0 0 _ SCompac EN 1 2 0 1 4 - 0 6 - 1 6 T 01300 9 :319 1 741 5 : 1 1 + 1 0 : 0 0 www.rockwellautomation.com/aus has also seen the benefits of having a

Machine & Process Automation - Turnkey Upgrade Solutions Improve Productivity - Quality - Safety

The on-machine Ethernet swithch is designed for harsh environments. Architecture system – bridging the gap between IT and the automation engineer. The company says the switch is designed to offer high availability, Quality of Service (QoS), and automated monitoring to help simplify network optimisation and convergence. The switch comes standard with 8, 16 and 24 fixed-port configurations, and each base model comes with M12 Ethernet connectors, SD flash card, dual-power inputs and a panel-mounted design. An expanded ArmorStratix 5700 switch offering includes 10 and 18 fixed-port configurations.

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Manufacturers’ Monthly NOVEMBER 2014 41

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MaterialsHANDLING Logistics choices get orders flowing ALMC, a joint venture between Caltex Australia and BP/Castrol Australia, accounts for more than half of the Australian lubricant market. The organisation has reaped the benefits of its use of Dematic products.

MART ColbyRACK storage solutions and new logistics IT systems from Dematic have improved order fulfilment efficiency and occupational health and safety (OH&S) for Australia’s leading manufacturer of lubricants, Australasian Lubricants Manufacturing Company (ALMC). Among the many storage system innovations at ALMC’s Sydney distribution centre (DC) are: • Custom-made, heavy-duty UUbeams which support three pallets per bay and provide extra space for accessing picking stock within floor level storage locations • A new type of heavy-duty carton live storage (CLS) system designed to handle cartons and pails • An ultra space-efficient drive-in/ drive-through pallet racking system.

Transforming picking When ALMC decided to upgrade outdated storage systems at its Guildford DC, a key driver was improving the safety and ergonomics associated with the manual handling of its product range, which includes heavy cartons and pails. ALMC’s Facility Manager, Jackie Wall, said: “We wanted to eliminate a number of potential safety issues with our previous storage system configuration, and improve order fulfilment accuracy and productivity.” Working closely with ALMC and its business process consultant Portland Group, Dematic developed a range of innovative ColbyRACK storage solutions to improve distribution and order fulfilment performance, with special emphasis on improving access to stock and the safe handling of ALMC’s SKU range of around 1500 products.

Order picking ergonomics “With fixed beam heights, our old storage system was inflexible, which created on-going product slotting, 42 NOVEMBER 2014 Manufacturers’ Monthly

If operators have any difficulty in scanning a location, they can simply take the scanner with them to the pick face.

access and OH&S issues,” explained Ms Wall. “A relatively low first beam level meant some of our taller staff would have to bend over when picking stock on pallets stored on the floor, and accessing stock at the rear of pallets required a lot of reaching, stretching and awkward product handling. “This is not ideal when you are picking products weighing up to 20kg, so improving access to stock at all of our ground floor pick slot locations was a key driver for our new storage system design,” she said. “Dematic came out and reviewed our operation and came up with a number of storage system configurations for us to evaluate,” added Ms Wall. “The solution we preferred was moving from the industry-standard two pallet-wide racking set-up to a three pallet-wide configuration. Placing only two pallets on the floor within the new three pallet-wide bays creates sufficient space for our order

pickers to be able to walk around the pallets when selecting goods. This significantly improves the ergonomics associated with the operation and eliminates the need for them to reach or stretch when picking. It also reduces the physical effort required in lifting our heavier SKUs, and has substantially improved the safety of our manual handling activities,” she said. “By making the new racking three pallets wide and closely following the DC’s roofline profile, Dematic also managed to implement our new and much safer storage solution without adversely impacting our total pallet storage capacity.”

New layout possible The majority of pallet storage systems enable two pallets to be stored within each bay of racking. However, so that ALMC could create space for its warehouse staff to walk around pallets at the ground floor level without compromising the total storage

capacity, Dematic utilised its new, heavy-duty UU-beam design. “Made by seam-welding two 75mm deep high tensile steel beams together, the 150mm deep UU-beams for ALMC are the largest and strongest we have manufactured to date,” said Dematic’s Key Account Manager, Soeren Schauki. “The extra depth of the beams significantly increases their stiffness and load-carrying capacity, making it possible for them to safely support the weight of three pallets instead of two,” he said. “Storing three pallets within a single bay of racking instead of two does, however, create potential putaway issues for the forklift operator,” added Mr Schauki. “If the forklift operator does not put the first two pallets away in the correct location on the beam, it could potentially make placing the third pallet within the bay difficult. Accordingly we investigated a range of options to ensure pallets would be placed correctly within the racking system, including the use of pallet guides. “However, after trialling a couple of options with ALMC’s operators, we found the most effective solution was, in fact, a very simple one. By marking the position of each of the three pallet slots on the front face of the UU-beams, the forklift operators had a simple visual guide to follow, which has proven to be very successful,” explained Mr Schauki.

Customised ColbyRACK CLS In addition to a new pallet handling strategy, Dematic also assisted ALMC with an innovative discrete order picking solution for its slower moving products. ALMC’s Customer Service Manager, Jan Gilfrich, explained: “We have a long tail of SKUs with a very slow movement rate – typically specialised types of lubricants and auxiliary products contained in a manmonthly.com.au

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variety of cartons and pails weighing up to 20 kg. “Because of space constraints, we used to store up to four of these SKUs on a single pallet within the pick face. Having mixed SKUs within a single pick face location slowed the picking of such orders, and also contributed to an unacceptably high level of picking errors,” he said. Dematic’s solution to the problem was to develop a new type of heavyduty carton live storage (CLS) system for ALMC’s slow-moving products. The space-efficient system, over three levels in some areas, created a discrete pick face slot for every SKU, enabling accurate product identification and reducing the potential for picking errors. By locating lighter products on the upper level and the heavier SKUs on the lower levels, the custom-designed CLS solution also significantly improves the ergonomics associated with picking pails and heavy cartons weighing up to 20kg. Paul M ABerry, 1 1 1 Dematic’s 4 _ 0 0 0 Senior _ TSU Structural Engineer, said: “In typical

Dematic’s Key Account Manager, Soeren Schauki (left) and ALMC’s Customer Service Manager, Jan Gilfrich. of the system, the next carton rolls CLS systems, cartons are supported Because cartons 1on inclined 2 0 1 4 roller - 0 9 tracks, - 2 2 Tso1that 4 : when 3 9 : 4 forward 5 + 1 0 into : 0 place. 0 are rectangular, the weight is evenly a carton is removed from the front

spread across the roller tracks, as is the impact when two cartons collide. “However, this was the first time we had been asked to come up with a CLS solution for pails and cartons. As well as the fact that many of the pails were – at 20kg – much heavier, and also much taller than the cartons typically housed in CLS systems, the circular shape of the pail concentrated any impact forces on a much smaller area,” he said. “We set-up some test bays of CLS and trialled a range of different roller track configurations and incline angles until we found the optimal solution that would enable the heavy pails to roll gently to the front of the system without causing any product damage. “Another challenge – because of the height of many of the SKUs – was working out how to prevent some of them from tipping over when they reached the front of the CLS,” added Dr Berry. “Again we trialled a number of options before settling on the use of

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MaterialsHANDLING “Another significant benefit of the new logistics IT systems supplied by Dematic Real Time Logistics is that they are voice-ready, which was critical as we later plan to further improve our order picking productivity and accuracy by introducing voicedirected picking,” he said. “Dematic’s contribution to improving the efficiency, safety, accuracy and productivity of our order fulfilment operations has been excellent from start to finish. Its willingness to work with us to find the right solution for our business was first class and we are very happy with the results and improvements throughout our logistics operations,” said Mr Gilfrich.

a sloping skid plate which runs along the front of the CLS roller tracks. The skid plate acts like a brake and gently stops the pails in a more vertical position, eliminating the potential for them to tip over,” he said.

Drive-In Racking At the other end of ALMC’s product movement curve, fast moving SKUs are housed in a very space-efficient drive-in/drive-through pallet racking system. The space efficiency of the ninepallet deep system is optimised by closely following the DC’s varying roof profile, and by utilising spaces where it would not be safe to handle pallets for the drive-through racking system’s spine bracing. “All of the new storage systems were progressively installed at the Guildford DC, with minimal disruption to day-to-day operations,” said Ms Wall. “We would empty out one aisle at a time and worked with the Dematic installation team hand-in-hand during the day. Dematic would pull the old storage system down, install the new racking and we would be able to start putting stock away after a couple of days,” she said. “The storage system, which provides capacity for over 2100 pallets and around 1100 pick faces, was replaced within less than five weeks in this manner,” continued Ms Wall.

Wireless IT systems In addition to updating storage systems at ALMC’s Sydney DC, Dematic has also transformed the efficiency

The new type of heavy-duty carton live storage system is designed to handle cartons and pails.

44 NOVEMBER 2014 Manufacturers’ Monthly

Fast moving SKUs are housed in a very space-efficient drive-in/drive-through pallet racking system. and performance of ALMC’s logistics IT systems operations. Following trials and evaluations of different equipment at ALMC’s sites in Sydney, Melbourne, Brisbane and Perth, Dematic Real Time Logistics updated the wireless networks at all four sites and rolled out more than 100 new state-of-the-art cordless Intermec SR61 RF scanners and Intermec CV41 vehicle-mounted RF terminals nationwide. The new integrated logistics IT systems are fitted to a fleet of more than 100 new forklifts and reach trucks, supplied under a national fleet management program by Linde Forklifts. “Our forklift operators really enjoy the freedom the new Intermec

“

Before drivers start their forklifts, they must answer 10 safety related questions… cordless scanners provide, as our previous scanners were tethered to their RF terminals, which hindered their use. Now, if operators have any difficulty in scanning a location, they can simply take the scanner with them to the pick face,” said Mr Gilfrich. “The scanners are also capable of reading both 1D and 2D barcodes, which will ensure their suitability for many years to come.” Mr Gilfrich added: “Our operators also really appreciate the difference in the quality of the displays on the new Intermec RF terminals. “We handle a lot of large drums and IBCs in our external storage yards, and the visual display screens on our previous generation RF terminals were, depending on the weather and lighting conditions, often very difficult to read. “Now, thanks to the excellent all-weather displays on the CV41 RF terminals, our forklift operators can read the screens even in sunlight,” said Mr Gilfrich.

Forklift safety at ALMC Safety at the DC has also been improved with the fitting of Linde’s Fleet Focus system on ALMC’s entire forklift fleet. Linde’s Fleet Focus system provides us with very valuable utilisation information and reports, and improves OH&S, said Ms Wall. “Before any of our drivers can start their shift, they must answer 10 questions relating to the safe operation of their equipment. To prevent the operators from simply memorising the answers, the questions are always presented in random order so they really have to think about their answer,” she said. “Another feature of the Fleet Focus system we are very happy with is its incident detection system,” added Ms Wall. “If any of the operators have a collision, the forklift automatically enters ‘tortoise-mode,’ and can only be reset by one of the supervisors. This provides a high level of accountability and can help identify if a particular driver is having problems, so that we can arrange retraining if necessary.” Dematic 02 9486 5555 www.dematic.com.au Portland Group 02 9210 4317 www.PortlandGroup.com Linde Material Handling 02 8822 9700 www.lindemh.com.au manmonthly.com.au

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EndeavourAWARDS Enter online at manmonthly.com.au

Calling all manufacturers!

Photography:Daxner Soren Asia-Pacific

HE Manufacturers’ Monthly, Endeavour Awards celebrate the manufacturing industry’s many and diverse successes. We are now inviting nominations for the 2015 Endeavour Awards. All you need to do is head to endeavourawards. com.au and fill in your nomination. Australia’s manufacturing industry is highly dynamic with many unsung companies making valuable contributions to the country’s economic output through product innovation, employment and exports. Now in its 12th year, the Manufacturers’ Monthly Endeavour Awards celebrate and recognise the achievements of Australian manufacturers and too do the Endeavour Awards. This year we have inspire further innovation and success. tweaked the award categories slightly to make sure There have been well over 1,000 finalists durwe recognise everyone who deserves to be recoging the history of the Endeavour Awards, and – if nised. you’ve been doing well in any of the categories The Business Transformation Award is no longer we have this year – you could be helping swell the with us, but in its place we have added the IT Apranks. Mthe A 1 manufacturing 1 1 4 _ 0 0 0 landscape _ E X H changes, 1 2so0 1 4 - plication 1 0 - 0 3award. T1 1 : 0 5 : 0 4 + 1 0 : 0 0 As

Most manufacturing operations depend on a solid infrastructure and a key part of this is IT. This new award has been established to recognise novel and cost-effective IT applications and implementations that made a significant and positive impact on the business in terms of efficiency, cost management and profitability.

The full list of awards – • Technology Application • Exporter of the Year • Environmental Solution • Safety Solution • Global Integration • Australian Industrial Product • Young Manufacturer of the Year • Lifetime Achievement The big one – Manufacturer of the Year – is chosen from amongst the winners of those categories. As someone wise once said, you’ve got to be in it to win it, so now is the time to make your way to endeavourawards.com.au and nominate!

BY THE INDUSTRY, FOR THE INDUSTRY. OWNED AND PRESENTED BY

Manufacturers’ Monthly NOVEMBER 2014 45

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Metalworking& MACHINE TOOLS Diversifying can be a path to success Summers Engineering has adapted to a difficult environment and carved out a niche through going further than just providing precision components. Brent Balinski reports.

“W

HAT puts us apart from most of our competitors is that we have broadened our scope of work from instead of just doing CNC machining, which is what the vast majority of our competitors do,” Jeff Brivik, director at Brookvale-based Summers Engineering, told Manufacturers’ Monthly. “We take on a broad range of work. So people might want additional services and we can provide them.” Brivik and his business partner Paul Kaplan have owned and operated the engineering company, which began in the early 1950s, for 13 years. Since taking over, they have grown Summers, moved premises, expanded the range of services on offer, and have been able to serve multiple industries successfully. “We are one step or sometimes two or three steps further and say ‘what are you doing with that, are you welding that to that? And this goes on there,” explained Brivik. “And we take on that little bit extra and it’s proved to put us apart from a lot of our competitors and is something that is a service that is valued by many of our customers.” Customers for Summers come in many different types and sizes. From mining companies, to public trans-

Sydney’s Summers Engineering was established in the 1950s. port, to infrastructure, the uneven demand levels from these and other sectors help balance out things for Brivik and co. About 50-65 per cent of their client base is repeat customers, according to the director. One of the challenges for Summers and other small manufacturing businesses is adapting to peaks and troughs in demand, making sure that the most value is realised from both human and capital resources. Diversifying across industries and with what the company can get done

The company has broadened its scope from simply doing CNC work.

46 NOVEMBER 2014 Manufacturers’ Monthly

at its machine shop are both insurance against idleness. Instead of merely precision components, Summers can go further and create subassemblies. Instead of just machining metal or plastic widgets, the company can bend, weld, heat treat, powder coat, anodise and more. The variety of capabilities that Brivik and his partner have invested are also a time-saver for clients, he said. It reduces supply chain headaches, handling, and coordinating different jobs with different suppliers.

“So if you can imagine a component is made, it then becomes part of another component, it then gets plated, it then might get printed and then come back and be assembled,” he said. “Now someone would have to coordinate all that, moving between different subcontractors, and it would take a lot of time and effort to do all of that. And we take on all of that ourselves.” Summers has been a member of the Australian Industry Group for about 35 years, and has joined and left the occasional manufacturing networking group over the years. Having sufficient, uninterrupted work is one of the business’s major considerations. Its workforce has fluctuated between about 10 and 17 employees in the last few years, depending on demand. Brivik refers to the issue as “turning the tap on” and off, subject to demand. “We’re a specialised industry, we can’t just take people off the street, so that becomes a difficult thing. And then as things slow down you don’t want to lose your good staff so it becomes and issue.” Summers Engineering 02 9905 1472 www.summersengineering.com.au

50-60 per cent of the company’s work involves repeat clients.

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Productivity-enhancing milling technologies

The FX Linear is a compact machine with a large working envelope.

CNC tool grinders ANCA launched the new FX Linear range of CNC tool grinders at the IMTS exhibition in Chicago in September. The range includes three models and represents not just a completely new design of machine and colour for ANCA, but also a significant number of new technologies – including cylindrical linear motors for the first time. The models in the range include the FX3 Linear – an entry level model, FX5 Linear which replaces the existing FastGrind machine and the FX7 Linear which replaces existing GX7/RX7 machines. As the CEO, Grant Anderson, launched the machines, he advised those attending, “ANCA has been a silent observer of Linear Motors for many years and felt that the technology available was not ideally suited to the harsh environment produced within a grinding machine. It was this lack of available technology that prompted ANCA to design and develop our own range of cylindrical Linear Motors.” The FX Linear range is ideal for everything from light manufacturing, to regrinding and even full production. Its best performance and productivity range MA 1 1 1 4 _ 0 0 0 _ S MA is for tools up to a diameter of 12mm. It can

grind tools up to a diameter of 200mm. Many new noteworthy features have been included in the range to make an operator’s life easier. These include a new touchscreen customisable with Windows that enables swipe and multi-touch, handheld pendant for easier set-up and an easy to access front loader door. The FX Linear is a compact machine with a large working envelope. The grinding wheel is positioned on the C-axis centreline which together with the compact design reduces the effects of temperature influence on machine elements. This assists in the thermal stability and rigidity of the machine. The FX machine range includes new generation RN33 software, latest generation AMD5x control system and a high performance CNC. The machines use LinX Linear Motors for accurate axis motion. These have been designed for a lifetime of operation in harsh grinding environments. Their design is fully sealed to IP67 and is impervious to the effects of grinding contamination.

ANCA 03 9751 8200 2 0 1 4 - 0 9 - 3 0 T1 5 : 1 8 : www.anca.com

KENNAMETAL finalised its acquisition of the tungsten materials business from Allegheny Technologies last year, including the full line of Stellram metalworking tools. Now the full platform of Stellram products are available as part of the Kennametal portfolio. The Stellram group of products include such production-enhancing milling technologies as the 7792 and 7793 high-feed milling cutter systems and the 5230 Chevron Long Edge mill cutter system, along with X-Grade carbide insert technology. High-performance materials such as titanium and other low-weight/ high-strength alloys are the materials of choice for these proprietary cutter designs, inserts, and grades. The Stellram 7792 and 7793 milling cutters direct cutting forces axially into

High-feed 7793 high-performance cutters and inserts. the spindle, lessening spindle wear and improving machining stability. These Stellram face mills operate at shallow depths of cut and very high feed rates, resulting in metal-removal rates up to five times greater than conventional cutters. Kennametal www.kennametal.com

Metal component prototyping SWIFT METAL SERVICES’ flexible and low volume prototyping platforms can meet a development schedule and help save money. In today’s competitive environment, the time taken to launch a product to the market is essential to the success and viability of your business. Prototyping a component or aspect of a part can help you test or debug your product at the planning or development stage in your project. Functional parts to be evaluated and tested are formed using low volume platform dies and manual pressing machinery. Most capabilities including tool develop2 6 + 1 0 : 0 0 ment are performed in-house to ensure

Most capabilities including tool development are performed in-house. fast prototype development. Low volume protyping dies ensure the best production quality parts until the design is finalised. Swift Metal Services 1800 626 525 www.swiftmetal.com.au

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Quality ISO 9001

Environment Health & Safety ISO 14001 OHSAS 18001

Manufacturers’ Monthly NOVEMBER 2014 47

Quality ISO 9001

Environment ISO 14001

Health & Safety OHSAS 18001

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PHARMACEUTICALS FDA shaping pharmaceutical sector Jonathan Wilkins examines the implications of the latest update CFR21/11 to 21 CFR part 11 of Code of Federal Regulations made by the US Food and Drug Administration.

The regulation has actually brought significant benefits by encouraging better electronic record keeping in good manufacturing practice.

HE US Food and Drug Administration (FDA) requires anyone designing, manufacturing and testing pharmaceuticals to abide by these rules. Since the enforcement of 21 CFR part 11 a few years ago, chemicals and pharmaceuticals manufacturers have had to adapt and improve automated procedures at their manufacturing plants across the US and Europe. When 21 CFR part 11 came into effect, significant discussions followed among manufacturers, contractors, systems integrators and the FDA concerning the interpretation and implementation of the regulations. The discussions specifically focussed on electronic records, electronic signatures, validation, time stamps, maintenance of electronic records and traceability. The audit trail is central to the control imposed by the FDA. The guides state that: ‘Even if there are no predicate rule requirements to document, for example, date, time, or sequence of

48 NOVEMBER 2014 Manufacturers’ Monthly

events in a particular instance, it may nonetheless be important to have audit trails or other physical, logical, or procedural security measures in place to ensure the trustworthiness and reliability of the records. We recommend that you base your decision on whether to apply audit trails, or other appropriate measures, on the need to comply with predicate rule requirements, a justified and documented risk assessment, and a determination of the potential effect on product quality and safety and record integrity. We suggest that you apply appropriate controls based on such an assessment. Audit trails can be particularly appropriate when users are expected to create, modify, or delete regulated records during normal operation.’ Though initially met with scepticism, the regulation has actually brought significant benefits by encouraging better electronic record keeping in good manufacturing practice (GAMP). Robotics and robot vision can

help record keeping and positively contribute to improving procedures. In addition, the data acquired through robotic vision can be fed to a PLC (Programmable Log Controller), HMI (Human Machine Interface) or SCADA (Supervisory Control

“

In a globalised market, manufacturers cannot afford to ignore these US guidelines… and Data Acquisition) system to be analysed. This data can also be easily interrogated and acted upon in the event of a recall. The validation requirements of the pharmaceutical industry mean that when a component breaks down,

simply introducing a new part from a different manufacturer, even if it achieves the same objective, isn’t really an option. Similarly, re-designing the system is not only expensive but also causes complex traceability and validation issues. European Automation offers to the pharmaceutical sector the capability to find and deliver nearly any component in a record time, irrespective of its rarity or obsolescence since the original installation.

The audit trail A comprehensive audit trail is compulsory when generating data; it also has to be completely secure, automated and time-stamped so that it records the date and time of entries. The criteria described by CFR21/11, which include standardisation, increased use of electronic transactions and automation can translate to significant cost reductions for manufacturers. Abiding by these requirements also boosts the credibility of the entire pharma manmonthly.com.au

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industry. Regulating issues such as serialisation, electronic pedigree and authentication, the CFR21/11 update welcomes electronic submissions in new drug applications alongside electronic logs for safety purposes. In 2007 the FDA managed to get the National Drug Code (NDC) passed in the United States. This type of serialisation has since been applied to all pharmaceuticals. The NDC contains a unique numeric or alphanumeric code not exceeding twenty characters, which allows for the creation of an electronic pedigree and helps trace the productâ&#x20AC;&#x2122;s journey from the point of manufacture to the point of dispensing. The European Federation of Pharmaceutical Industries and Associations (EFPIA) is also recommending that manufacturers use a data matrix containing a unique serialisation number for each secondary packaging unit distributed and sold in Europe. Designed to protect both end users (patients) and manufacturers, the regulation compels manufacturers to create robust procedures and controls to guarantee the authenticity, integrity and confidentiality of electronic records. From a lean perspective, CFR21/11 also offers minimum guidelines for Current Good Manufacturing Practice (CGMP) for preparation of drug products. The key areas for CGMP are aseptic processing, automated procedures, scans and cleanroom environments.

A risk based approach Pharmaceuticals manufacturers wishing to comply with CFR 21/11 can sometimes over-engineer their procedures, with negative consequences on staff and productivity. Manufacturers fall into the over-validation trap when they try to test and assess every aspect of the traceability procedures at hand. A healthier, risk-based approach should be considered by the manufacturers. Instead of using a bottomup approach, manufacturers are advised to focus on critical records and thus identify and define electronic records and signatures. The next steps are based on the predicate rules, criticality of the process and risk to product and patient safety. manmonthly.com.au

Pharmaceuticals manufacturers wishing to comply with CFR 21/11 can sometimes over-engineer their procedures, with negative consequences on staff and productivity.

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The risk-based approach leaves out the testing of areas or systems that have been pre-qualified by their manufacturer, making room for more important areas and in which failures would result in downtime or significant infringement of GAMP. It also offers manufacturers the opportunity to improve their systems and comply with regulations while recognising that zero risk is impractical and unattainable. Though CFR 21/11 is a US regulation, it must be observed by any company wishing to sell medical devices, components or pharmaceuticals to North America and Europe. In a globalised market, manufacturers cannot afford to ignore product quality and safety guidelines. Embracing them and further improving oneâ&#x20AC;&#x2122;s procedures is the only way to remain competitive in an ultra-tough market. [Jonathan Wilkins is Head of Marketing at European Automation Group. Australia Automation is the local branch of the group.] Australia Automation 03 8652 1829 www.australiaautomation.com.au Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2014 49

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What’sNew Robust industrial camera system Night vision camera THE O2M camera system from ifm efector not only features an encapsulated, weather-proof aluminium housing with IP 68/IP 69K but also temperaturecontrolled lens heating. With high shock and vibration resistance it also holds the E4 type approval. The pressure-resistant camera system features automatic Additionally, the brightness adjustment. system is fitted with an analogue video output and suitable for universal use. Operating and rear area monitoring is becoming increasingly important in the field of mobile machines. Universal and trouble-free use is required even in extremely difficult conditions. The pressure-resistant camera system features automatic brightness adjustment and light sensitivity of < 0.25 lux. The system can, for instance, be directly connected to the PDM360 dialogue modules with graphics capabilities, colour display and analogue interface. This makes it possible to use the dialogue module not only to display machine information but also images of up to two cameras. Therefore a separate monitor is not needed. The wide selection of flexible mounting accessories provides universal installation and application options. ifm efector 1300 554 584 www.ifm.com

Ducting for CNC machining EXIMO’S CNCFlex ducting has been specifically designed for CNC processing centres and has a medium weight and a very flexible polyether-polyurethane construction. The ducting comes in a clear colour, has temperature resistances ranging from - 40°C up to + 100°C. It is available in 10m rolls or can be cut to any length to order. Applications of the ducting The ducting is oil-resistant. include suction and removal of dust • Resistant to hydrolysis and microbes and particles in woodworking and • Good abrasion resistance metalworking industries, especially those • Good flexibility using CNC processing centres or for use • Resistant to oil in any CNC machining applications where • Free of halogen and softeners fumes and/or dust particles need to be • Electrically conductive according to BGI effectively and quickly removed from the 739-2 by grounding the wire machining process. The main physical properties and Eximo benefits of Eximo’s CNCFlex include 02 9757 1233 • Flame retardant according to DIN 4102 www.eximo.com.au 50 NOVEMBER 2014 Manufacturers’ Monthly

FLIR Systems has released the PathFindIR II thermal night vision system. Using the company’s latest night-time video analytics algorithms, the camera provides automated detection and alerts of pedestrians and animals, so drivers can see hazards sooner, react faster, and stay safer on the road at night. Its thermal night vision lets drivers see pedestrians, cyclists, animals, and other road hazards at night from up to four times farther away than with just the vehicle’s headlights. Building on the success of the original model, and made in cooperation with technology partner Autoliv, the camera adds a night-time pedestrian detection feature that can be configured to automatically display alarms that alert drivers when the system detects a person nearing or crossing the vehicle’s path. In addition to passenger vehicles,

The camera uses night-time video analytics algorithms. the camera installs easily in a wide variety of cars, trucks, and industrial vehicles. FLIR Systems Australia 1300 564 230 www.flir.com

Tank washer for bulkheads in tankers SPRAY Nozzle Engineering and Gamajet have created the Sidewinder, a solution for cleaning the notoriously hard-to-reach bulkheads in cargo tanks. Designed to achieve the most effective tanker, trailer, and railcar cleaning, it enables a Gamajet Tank-cleaning device to be placed on its side, changing the nature of the nozzles’ orbit and enabling it to focus on the bulkheads. As a result, tankers can be cleaned in half the time. Instead of following an ellipse pattern across the tank wall, as is the case when spinners are inserted vertically, the device enables the machine to form a figure-8 pattern sweeping the length of the tanker. According to the company, with its implementation the spinner will deliver 30 times more hits to the bulkheads, cleaning tankers in half the time with no shadow areas. For best results, it should be used in conjunction with Gamajet spinners, which are designed to handle 6m to 9m throw lengths. Spray Nozzle Engineering 03 9583 2368 www.sprayingsolutions.com.au

Designed to achieve the most effective tanker, trailer, and railcar cleaning.

manmonthly.com.au

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Brought to you by

Portable vibration calibrator

Gateway offers remote monitoring of devices where WiFi is not possible.

Industrial cellular gateway for remote devices PROSOFT Technology’s ICX30-HWC industrial cellular gateway allows remote site access and communication to PLCs, RTUs, and other Ethernet and serial devices, without Wifi. The industrial cellular gateway provides secure wireless Ethernet and serial connectivity to remote devices and equipment over 3G cellular service including PLCs, RTUs, DCS systems, instruments, electronic billboards and communication towers. The industrial cellular gateway is said to be ideal for programming and maintenance,

remote data collection, location-based monitoring and SCADA applications. Remote devices are accessed using secure VPN tunnels over Internet connections. In addition, the EtherNet/IP Class 3 Server allows diagnostic data to be sent to a Rockwell Automation ControlLogix or CompactLogix system. The gateway supports cellular networks worldwide, including 3G GSM, WCDMA and HSPA+ Networks, among others. ProSoft Technology 1300 721 771 www.prosoft-technology.com

Micro laser distance sensors PANASONIC has released a new range of Micro Laser Distance Sensors with built in amplifier. They are available in three sensing distances of 30, 50 and 100mm. They are suited to applications that require highly precise measurements in the order of 1/100 mm and have a precision down to 10um. The HG-C series sensors incorporate a new optical system with a built-in mirror which allows for a more compact sensor and higher measurement accuracy compared with equivalent displacement sensors. The sensors not only indicate measured values in millimetres, but also produce a 0-5V analogue voltage output so that various calculations and logging can be performed when the output is taken into a PLC or control system. manmonthly.com.au

THE 9110D Digital Portable Vibration Calibrator is the newest product in the 9100 Series Portable Accelerometer Calibrators from The Modal Shop, a PCB Group Company. It offers new features that enable users to take that extra step in portable calibration, including May be used over an extended 7 Hz (420 CPM) to generating ISO 10 kHz (600,000 CPM) frequency range, at 17025-compliant calibration amplitudes up to 20 g pk (196 m/s²). certificates. The calibrator is a compact, battery-powered and completely self-contained vibration reference source which can be used to calibrate individual sensors, vibration switches and data collectors; as well as to validate the entire measurement channel of a condition monitoring or recording system. Designed for use in-situ, including on the manufacturing plant floor, the unit calculates and displays test sensor sensitivity on the readout screen in real time. It also has built-in ICP input for common piezoelectric accelerometers and can save up to 500 calibration records directly to the unit’s internal memory. Users can copy records to the included USB flash drive with Report Generation Workbook via the unit’s USB port. Saved calibration data is then transferred to a computer where the user can easily generate and print an ISO 17025-compliant customisable calibration certificate. The vibration calibrator features an integral precision quartz reference accelerometer and closed-loop level control, packaged in a rugged Pelican Storm case with two press and pull latches. It is always ready for travel to industrial test sites. John Morris Industrial 1800 251 799 MM0 4 1 4 _ 0 0 0 _ I N D 1 2 0 1 4 - 0 3 - 1 3 T1 2 : 3 3 : 1 4 + 1 1 : 0 0 industrial.johnmorris.com.au

SCADA SYSTEMS PC & PLC PROGRAMMING Wee ooffer W ffee cost effective solutions for your automation ff technology tech te chno noll needs Australia wide. At IIS&E S&EE we specialise in systems integration and S& auto au toma ma automation projects, big and small. The sensors offer precise measurement. Control Logic 1300 374 073 www.control-logic.com.au

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INDUSTRIAL SOFTWARE & ELECTRONICS Tel: (07) 3856 2232 Fax: (07) 3355 1012 E-mail: info@industrialsoftware.com.au Web: www.industrialsoftware.com.au

Manufacturers’ Monthly NOVEMBER 2014 51

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What’sNEW

Brought to you by

Tork is off and racing in the Volvo Ocean Race TORK is proud to support Team SCA – an all-female team currently racing in the Volvo Ocean Race, the toughest open ocean sailing regatta in the world. For Tork Professional Hygiene, the race is about building a high-performance team, cooperation and striving towards common goals with a clear strategy that has many similarities to day-to-day business. Local fans will be following Australian team member Liz Wardley, Watch Captain, who is renowned for her numerous titles gained in the catamaran class and for her oceanic racing skills. In 1999 she came first overall in the IMS Division 2 of the Rolex Sydney Hobart Race. The year before she was the skipper in the Rolex Sydney to Hobart Race – at the age of 19. She raced in the Volvo Ocean Race in 2001-2002 on Amer Sports Two and she has competed many times in the French solo sailing race Solitaire du Figaro. As well as being Watch Captain, Wardley is in charge of hydraulics and mechanics on board where Tork products play an important role. Tork Wet Wipes are used to help Team SCA – an all-female team in the Volvo Ocean Race. clean oily surfaces or oil spills. “They come in very handy as we don’t need to use any The yachts are currently making their way to Cape precious water and it is all in one,” says Wardley. Town, South Africa. The nine-month race kicked-off in “We also use a lot of Tork Industrial Cleaning Cloths Spain in October and will finish in Sweden in June 2015. instead of rags like the old days which would absorb a lot eleven of water M A 1and 1 1become 4 _ 0 very 0 0 heavy. _ T P The C Cleaning 1 Cloths 2 0 1also 4 - 1 Teams 0 - 1 will 4 Tvisit 1 2 : 0 ports 0 : 2around 8 + 1the 1 :world 0 0 including Auckland ‘City of Sails’ in March 2015. Save the date, as come in waterproof packaging”.

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this event will attract over 250,000 visitors over the course of the stopover. Tork Professional Hygiene 1800 643 634 www.tork.com.au

New holemaking products DESIGNED for performance, versatility and value, the new Threadmaster Tap and Feedmax Universal drills have been added to Seco’s comprehensive cutting tools portfolio. The high-speed steel Threadmaster Tap is Seco’s first tap product offering, and allows manufacturers to thread holes in a wide range of workpiece types and materials. Its universal design allows the tap to also accommodate the most common thread sizes as well as reduce tooling inventory and lower costs. Threadmaster Tap products are compatible with Seco’s EPB tapping chucks, such as the new EPB 5867 featuring microcompensation for synchronised tapping, EPB 5865 ER collet tapping chucks, EPB 5260 quick change tapping chucks and EPB 5283 quick change tapping chucks with axial compensation. Suitable for holemaking applications across all industry segments, especially those requiring reduced stockholding costs for low and medium batch production, Seco Feedmax Universal drills feature a multipurpose, four-facet point geometry that provides excellent centring capability,

Allow manufacturers to thread holes in a wide range of workpiece types and materials. maintains an IT8/9 hole tolerance and is easy to regrind. The drills also feature a polished AlCrN coating that offers high-abrasion resistance, toughness and good chip evacuation. When used together, the Threadmaster Tap and Seco Feedmax Universal drills establish a highly productive and versatile combination of tapping and drilling operations. Seco Tools 1300 55 7326 www.secotools.com/au manmonthly.com.au

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Call 1300 367 095 to receive a complimentary solutions bundle when you order one of our eligible multifunction devices before 12 December 2014. Visit fxasolutions.com.au/manufacturing for full terms and conditions. Xerox and Design, as well as Fuji Xerox and Design are registered trademarks or trademarks of Xerox Corporation in Japan and/or other countries.

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The lastWORD Innovation demands the right skills STEM skills have been a hot topic lately. Brent Balinski spoke to BASF’s Australia and New Zealand boss Ross Pilling about the importance of science and of asking the right questions.

ART of encouraging a more competitive nation, according to Ross Pilling, involves encouraging children to ask the question “how does this work?” Pilling is the chairman and managing director of German chemicals giant BASF in Australia and New Zealand. Having sufficient numbers of science, technology, engineering and mathematics (STEM) discipline graduates around is no small matter to him and other business leaders. As part of their effort to encourage more youngsters to grow into the scientists of tomorrow, Pilling’s company runs a global program, BASF Kids’ Lab, aimed at getting those aged 6 – 12 interested in chemistry. “We take primary aged kids and spend a morning with them doing safe, fun, hands-on experiments with chemistry,” Pilling told Manufacturers’ Monthly. “And what we find is that they ask questions about the ‘how’. How does this work? Why is this happening? Not ‘what do I do with this thing?’” Nurturing this scientific inquiry is no small matter, either. Pilling points out that most of Australia’s competitors – such as the US, Malaysia and India – have programs to increase the number of graduates in science and engineering. However, Australia, as the nation’s chief scientist Professor Ian Chubb recently pointed out, doesn’t have a science, technology or innovation strategy. It is the only OECD country for which this is the case, according to Chubb. The declining participation rate in so-called STEM disciplines in Australia is a “source of profound frustration” for Pilling and others in the business community. Access to the right scientific minds within Australia and the rest of the region is, of course, important for BASF. Within the region, the chemicals maker has ambitious and well defined plans for growth to 25 billion Euros in annual revenue by 2020. The strategy includes increasing the number of R&D personnel it employs from a 2012 figure of 800 to 3,500 by 2020. The goal is to carry out a quarter of global research activities in the region. In Australia, BASF operates a global mining R&D centre at the Australian Minerals Research Centre in Perth, and is involved in a number of research collaborations with leading universities and other institutes like the Cooperative Research Centre for Polymers. The company plays a major role in Australia’s 54 NOVEMBER 2014 Manufacturers’ Monthly

According to Ross Pilling, the instinct for scientific inquiry needs to be nurtured from a young age. chemicals and plastics sector, which itself provides inputs for 109 of the 111 industry sectors in the country. To seize the opportunities “at the intersection of global opportunity and Australian advantage”, believes Pilling, industry must take a value chain perspective, building on Australian advantage both along individual value chains and synergies between these value chains. One example is dairy, part of the agriculture value chain. Plastics is part of the dairy value chain from beginning (in silage wrap) and at the end (within milk bottles). It’s also found in places such as waterpipes at dairy processing plants. Pilling also cited two well-known manufacturers, Boeing Australia and Textor Technologies – in aerospace and textiles respectively – as two standout examples of the type of advanced manufacturing that can be successful in Australia. “What’s interesting about these two companies is that they’ve both got advanced technology, they’ve both worked with researchers, with the CSIRO, with universities, and they both understood their value chain and their market,” he offered. “And they both developed production processes and transitioned technology and technical ideas into products that are sold on a massive scale.” Both are also underpinned by chemistry, for

example in adhesives, resins, and an understanding of materials science in terms of strength/flexibility or absorbency. For the success and growth of the chemicals and plastics industry – an advanced manufacturing sector in its own right – the current issues around energy costs and availability, as well as education are two major issues. The availability of affordable Australian gas is sometimes mentioned in connection with BASF, given the firm’s plans to expand within the region. Reports earlier this year (which were repeated last week) that Australia was at risk of missing out on $1.5 billion in investment from BASF were purely speculative, said its managing director. “What I actually said was ‘wouldn’t it be nice if we could attract at least $1 billion of BASF’s planned 10 billion Euros expenditure to Australia as an investment in a world-scale chemical plant?’” explained Pilling. “And what would it take to attract that investment to Australia? Obviously it has to be the best place to invest. “But one of the things that could make it the best place to invest was access to well-priced gas in a sufficient volume with a sufficient certainty to allow us to make that investment.” In terms of education, Pilling believes a science and innovation strategy such as that recommended by Chubb, is a very good starting point. However, things need to be “broader than that”, and there is a role for business to play, both in communicating what’s needed from educators and in helping to enthuse kids about a career in science. Innovation can’t be driven without the right skills, he said. And it can start with encouraging children to ask the right types of questions, for example, of the phones they so often seem stuck to. “The thing they think about it is ‘what can it do? I can surf the net, I can contact my mates, access knowledge, I can connect to the world,’” said Pilling. “What they don’t ask is ‘how on earth does it do it? How does this little technical miracle do all of this data processing without getting so hot it burns my hand? How does it manage to work for 48 hours without me having to recharge it?’ “So they don’t ask ‘how?’ And at the core of the answer to every single one of those questions is chemistry.” BASF 1800 333 048 www.basf.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 Solution of the Year • Industrial Product of the Year • IT Application of the Year • Global Integration Award • Exporter of the Year • Young Manufacturer of the Year • Lifetime Achievement Award • Most Innovative Manufacturing Company • Manufacturer of the Year

PRINCIPAL SPONSOR