Manufacturers' Monthly November / December 2015 by Prime Creative Media

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

NOVEMBER/DECEMBER 2015

TOP 100 MANUFACTURERS IN AUSTRALIA

INSIDE >> 34

Women in Industry We launch our 2016 awards

Management Lessons in innovation from the USAâ&#x20AC;&#x2122;s best

The Last Word Introducing collaborative robot, Yumi

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Inside

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Publisher: Martin Sinclair martin.sinclair@cirrusmedia.com.au Managing Editor: Branko Miletic Ph: (02) 8484 0976 Fax: (02) 8484 0722 branko.miletic@cirrusmedia.com.au Editor: Matt McDonald Ph: (02) 8484 0645 Fax: (02) 8484 0722 matthew.mcdonald@cirrusmedia.com.au 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 Production Co-ordinator: Mary Copland Ph: (02) 8484 0737 mary.copland@cirrusmedia.com.au

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6 Editorial 8 News & Analysis 10 Regional Manufacturing 14 Innovation 16 Materials Handling 20 Distribution 22 Exporting 24 Industry Overview

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26 The top 100 Manufacturers 34 The Women in Industry Awards 36 Motors & Drives 38 Management 40 Welding 44 What’s New 50 The Last Word

Behind the cover

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

NOVEMBER/DECEMBER 2015

TOP 100 MANUFACTURERS

Average Net Distribution Period ending March ’15 18,904

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THE end of the year is fast approaching, so it’s time for us to deliver our annual list of the top 100 manufacturers in Australia. Once again, this information comes courtesy of IBISWorld. The list, which includes both Australian-owned and foreign-owned companies, presents an overview of each company’s size and performance. It includes key financial IN AUSTRALIA figures and employment levels. In addition, we break down the list down into the main industry sub sectors – Food, Chemicals, Pharmaceuticals, Non-Metallic Mineral Products, and Machinery. Then, to wrap things up, we hear from John Madigan of the newly-formed 2 0 1 5 - 0 8 - 2 6 T1 5 : 0 8 : 2 9 + 1 0 : 0 0 Manufacturing and Farming Party. (see p.26) INSIDE >>

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Women in Industry We launch our 2016 awards

Management Lessons in innovation from the USA’s best

The Last Word Introducing collaborative robot, Yumi

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ASSA ABLOY Entrance Systemswww.assaabloyentrance.com.au is the world’s most comprehensive supplier of entrance automation manmonthly.com.au solutions. With our globally recognized product brands Besam, Crawford, Megadoor and Albany, we offer products and services to satisfying end-user needs forautomation safe, secure, convenient and ASSAABLOY ABLOYEntrance EntranceSystems Systems theworld’s world’s mostdedicated comprehensive supplier ofentrance entrance automation ASSA isisthe most comprehensive supplier of sustainable operations. With a holistic approach to the Megadoor flow of goods and people,we we create efficient solutions.With Withour ourglobally globally recognized product brands Besam, Crawford, Megadoor and Albany, we solutions. recognized product brands Besam, Crawford, and Albany, solutions for each with the bestneeds possible of cost,convenient quality and lifetime offerproducts productsand andservices services dedicated tobusiness, satisfying end-user forbalance safe,secure, secure, and performance. offer dedicated to satisfying end-user needs for safe, convenient and ASSA ABLOY Entrance Systems is a division within ASSA ABLOY.

sustainableoperations. operations.With Withaaholistic holisticapproach approachto tothe theflow flowof ofgoods goodsand andpeople, people,we wecreate createefficient efficient sustainable solutionsfor foreach eachbusiness, business, withthe thebest bestpossible possiblebalance balance of13 cost, qualityand andlifetime lifetimeperformance. performance. solutions with of cost, info.au.aaes@assaabloy.com, Ph: 1300 13 10 quality ABLOYEntrance EntranceSystems Systems divisionwithin withinASSA ASSAABLOY. ABLOY. ASSAABLOY isisaadivision ASSA www.assaabloyentrance.com.au

Manufacturers’ Monthly NOVEMBER/DECEMBER 2015 5

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Comment

BRANKO MILETIC – Managing Editor

Looking at the world through beer glasses

& a happy new year from all of us at Manufacturers’ Monthly

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REPARING the ‘Top 100 Manufacturers in Australia’ feature for this issue, one thing really caught my eye: the fact that Australia’s beer consumption is falling. In fact, beer consumption last year was at its lowest in 70 years, down to a sobering 92.4 litres per person per year. This is a telling statistic, especially for our brewers, who are battling the dual effects of both changing tastes and a bevy of imports. That trend of course is evident across a swathe of Australian manufacturing sectors including car making, textiles, food, and even home building products. Does this mean that we will one day see the end of the Australian love affair with the amber liquid? I strongly doubt it, but in some ways, beer can be thought of as the ‘canary in the mine’. By that I mean that, just like our beer brewers, Australian manufacturers need to change, be nimble, adapt and, above all, understand where the next trend is coming from. This is partly due to globalisation and partly because of changing demographics. However, what is also clear is that industry in this country is now front-and-centre 2on0 the 1 5world - 1 0stage - 2 0inTterms 0 9 :of2competition. 4 : 3 8 + 1It’s 1 :a case 0 0 of adapt-and-prosper, or ignore the trends at your own peril.

Luckily though, many of our best and brightest manufacturers have done just that – the feedback from both the Endevour Awards and our Factories of The Future events have shown that Australian manufacturers are wholeheartedly embracing change, and for some of them, those changes have become both transformative and in some cases, even cathartic. Getting back to beer making, a perennial favourite subject of mine, the figures also show that it’s the premium end of the market that has actually seen growth. In other words, while the cheap and mid-level beer brands are suffering, the more salubrious brands along with niche products with the highest prices have actually grown. So the ‘takeaway message’, as the marketing gurus call it, is that the era of digging holes and simple and rudimentary fabrication is well and truly over and the way forward for Australian industry is in valueadded and premium-priced high-end technologically superior products. Whichever way you look at it, I think it’s finally time to lift our glasses and say cheers: after all, it’s where our manufacturing industry always should have been. branko.miletic@cirrusmedia.com.au

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6 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

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Can the answer you’re looking for be a question? Innovation starts by asking questions. It’s the way people find new solutions to old problems and it’s the way Can Business works. The more questions we ask you about your business, the more we can help find new ways of keeping it moving. Visit commbank.com.au/canbusiness

Commonwealth Bank of Australia ABN 48 123 123 124.

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News&ANALYSIS In brief... ASC posts $21.9m profit Adelaide-based shipbuilder ASC, the company former Defence Minister David Johnston said he wouldn’t trust “to build a canoe”, has posted a $21.9m profit. This strong result follows the company’s $3.8 million loss last year.

Orica appoints new chairman Orica has announced former Orica Malcolm Broomhead as its new chairman. He will take the role when current chairman Russell Caplan’s retires on 31 December. Broomhead is currently a nonexecutive director of BHP, the chairman of Asciano, and the chairman of Kilfinan Australia.

Textile union considers merger The Textile, Clothing and Footwear Union (TCFUA) may merge with the much larger Construction, Forestry, Mining and Enery Union (CFMEU). While the two unions have been in talks for the past several months, any final decision on a merger would have to be put to a vote of TCFUA members.

Govt criticised for handout Bluescope does not deserve the assistance it received from the NSW Government and the company should improve its operations on its own, according to Tony Harris, a former NSW auditor-general. The government agreed to defer $60m of Bluescope’s payroll tax payments over the next three years.

Toyota legal action over counterfeits Toyota Australia is taking legal action against those who are selling counterfeit brake pads, containing asbestos and designed for Toyota vehicles. It is not clear in which country the counterfeit items are manufactured but they are designed for HiLux and Hiace vehicles sold over the past decade.

VW emissions scandal deepens Volkswagen used its emissions cheating software in more vehicles than the company has admitted, according to the US Environmental Protection Authority. The software lets cars know when they are undergoing tests and allows them to temporally reduce their emissions.

8 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

Union pushes Thales to maximise local content THE Australian Manufacturing Workers’ Union (AMWU) wants Thales Australia to ensure that most components in its Hawkei military vehicles, to be made in Victoria, are also made locally. The Government announced earlier this month that Thales has been awarded a $1.3 billion contract to build 1,100 of the vehicles. As a result, 170 skilled workers will be required at the company’s Bendigo facility. AMWU State Secretary Steve Dargavel welcomed the announcement but added – “But now the Government needs to come clean about the amount of local

content involved in the project. We have the capacity to supply the content locally, we just need the Government to provide that certainty to the supply chain and the workers across the whole State.” The two sub frames and a protection cell kit will be fabricated at Bendigo but there is concern the level of local content may not climb beyond 50 per cent, with much of the inner passenger shell to be imported. The AMWU also wants to know whether 1,000 trailers and trays for the Hawkei will be fabricated locally or be imported.

What members of our manufacturing community thought about the AMWU’s actions. ‘Greco’ Don’t get me wrong, more local content the better, but does the union realise how potentially expensive it could be to increase the local content after the fact? CRs, CNs, supplier approvals, testing, meetings, etc. – I can only see the low hanging fruit being converted to locally sourced. ‘NS’ All this squabble over 1100 vehicles per year – we truly have become a manufacturing back water. Why does the AMWU not approach Toyota and BEG them to stay rather than fight over hot chips like some deranged seagull! ‘Con’ Totally agree with you there! I think they should devote some time with Daniel Andrews and come up with a plan to entice the auto sector to stay on. If that means adjusting pay rates or other incentives to be in line with the rest of the industry, so be it. I’d rather keep all these people employed where the Government actually collects taxes from them and their employer in lieu of having them unemployed and the government paying out welfare on them (and in turn, their living standards will be significantly affected). Keeping only Toyota going may be harder than it seems. The

greater the volumes, the cheaper the unit cost. For example, if I was to supply Ford, Holden and Toyota with their door trims, my unit cost would be much cheaper to produce overall and I could then pass this discount on. If I only supplied one of these manufacturers, my cost to manufacture the item could potentially not be economical anymore. I’m all for keeping our car industry going in this country. Losing the ability and skillset is only to our demise in the long term. ‘Peter Angelico’ It’s code for ‘Do business with local companies that have union EBA’s or else’. So much for competitive tendering and may the best company win. As a manufacturer in Dandenong who sells into the Defence supply chain, among other sectors, all I want is the opportunity to tender, not quotas and any other non-competitive clauses that are easy to get around if you happen to be one of ‘the chosen few’ approved by the unions.

portunity for businesses like mine to gain the work. But it’s too hard to move the goal posts after the ball is already in the net! I hope they learn from this and keep pressure on the government to look after our own back yard before hasting to decisions. That said, I’m happy to have an opportunity at low hanging fruit as it is better than the non-edible rotten fruit on the ground. Editor’s note: Comments are as received. Corrections are made to spelling and grammar.

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

‘Con’ It’s great that the AMWU are trying to support local industry. The only problem is that this pressure needs to be put on the Government, not the manufacturer. As a local sheet metal and general metal fabricator, the more local content, the more op-

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CBBUS1084-1_MM 2015-11-02T17:40:40+11:00

Can electrical innovation be developed without shifting power? Innovation starts by asking questions. It’s the way people find new solutions to old problems and it’s the way Can Business works. NOJA Power, one of Australia’s leading manufacturers of voltage switchgear products, recognised the need to innovate and wanted to raise significant capital for their Research & Development division. At the same time, they wanted to retain full ownership of their company. Some equally innovative funding was required, which was where we came in. See the full story at commbank.com.au/canbusiness

Commonwealth Bank of Australia ABN 48 123 123 124.

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Regional MANUFACTURING First stop Dandenong, next stop the world Some 600 people from the manufacturing industry gathered recently at the Victorian Manufacturing Industry Showcase in Dandenong. Hartley Henderson was one of the attendees.

OCAL business leaders at the event spoke about the importance of continuing innovation, development of a new era in advanced manufacturing and identification of new market opportunities relating to a broad range of priority growth sectors including transport, construction and defence technologies, pharmaceuticals, medical technologies, and food. Manufacturing success stories within Victoria were highlighted and there was a strong focus on product diversification, supply chain and collaborative opportunities, generating high value, high quality exports, and identifying and developing niche markets. Established in 2003 in the Melbourne suburb of Kilsyth, Prebuilt identified an opportunity to move away from conventional kit homes and introduce architectural design to manufactured homes whilst exploiting and further developing the efficiencies that prefabrication can deliver. The company now employs up to 150 construction workers, plus 50 office staff, and has three manufacturing facilities totalling over 12,000 square metres. High quality modular homes and commercial buildings are manufactured in a very controlled environment. According to Managing Director Rob Colquhoun, the company set out to change the way prefab is done and has made skilled manufacturers out of builders. “Significant efficiencies have been achieved including in waste reduction and key methods have been adopted from the automotive sector. We have also developed our own technology and systems that enable the most efficient and innovative construction of our architecturally designed houses,” he told Manufacturers’ Monthly. “This compares to conventional on-site building methods that can be messy, complex, and involve significant safety issues, as well as

substantial downtime due to inclement weather. “Each of our homes begins with concept design, during which floor plans and 3D models are created. This in turn allows a fixed price to be established even before production begins and ensures no unpleasant surprises due to cost blowouts.” Rob says the company produces

Ego Pharmaceuticals is the largest Australian owned pharmaceutical company specialising in dermatology. It produces over 120 skin products including QV skincare and Sunsense sunscreen and has 450 staff, of which over 100 are outside Australia including in the Middle East, Taiwan, Malaysia, Singapore, Hong Kong and Macau.

Ego Pharmaceuticals exports its skin care products to 25 nations. 30 to 50 houses and over a hundred commercial modules a year. Many hundreds of Prebuilt houses have now been built across Australia in both rural and urban locations. Typical budgets are now between $300,000 and $1.5m, while some are well over $2m. “Prefabricated housing is the primary way of building a house in Japan, and there is significant uptake also in countries such as Sweden, Norway and Germany. The market in Australia is gathering momentum as the concept moves away from kit homes to well designed prefab houses,” he said. “We have now expanded into commercial prefab applications and large scale projects have been completed for McDonald’s Restaurants, Lend Lease, Stockland, Mirvac, and the Anglican and Catholic Churches.”

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In addition, the company has distributors in Cyprus, Malta, Egypt, Jordan, Iran, Mauritius, Brunei, Indonesia, UK, New Zealand and Pacific Islands. All products are made in the company’s state-of-the-art plant in the Melbourne suburb of Braeside, which was recently expanded at a cost of some $15m. According to the Scientific and Operations Director of Ego Pharmaceuticals, Dr Jane Oppenheim, the company has experienced 12.5 percent compound growth each year for 30 years. “We are experiencing strong growth both in Australia and internationally with exports to 25 nations contributing some 37 per cent to total net sales. Each market is researched in depth and marketing is strategi-

cally planned for sustained long term growth,” she said. “Whilst Ego’s market expansion in Australia is substantial, our export performance is also having a significant positive impact on the company’s bottom line. Investment in export growth has proved to be a huge success factor for the company and allows us to reinvest in infrastructure and innovation in Australia for the long term. “There is a strong emphasis on R&D to ensure the development of new innovative high quality skincare products. In planning for the future, it is important to think big, be bold, and to demonstrate that the company is worthy of investment. “Employees are encouraged to be engaged in the planning process through sharing information, and modifications are made to take into account the ideas of others. In the implementation process, projects are broken down into sub-projects by group, by year and by month. Ego Pharmaceuticals recently won the 2015 Governor of Victoria Export Award – Health and Biotechnology, and Jane believes that international expansion and continuing development of export markets is the key to future success. [Hartley Henderson has been a regular contributing writer to Manufacturers’ Monthly for the past eight years, covering industry developments in Victoria and South Australia. Prior to that, he held senior positions in government, semigovernment and business enterprises and was National Program Director with the Productivity Promotion Council of Australia]. Ego Pharmaceuticals 03 9586 8800 www.egopharm.com Prebuilt 03 9761 5544 www.prebuilt.com.au manmonthly.com.au

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Innovation Titanium without the tears Several research institutions and companies have been involved with Thermally Assisted Machining (TAM), a solution aimed at making tough metals easier to work with. Brent Balinski spoke to the CSIRO’s Dr Nazmul Alam about TAM.

ITANIUM’S properties make it a highly useful metal, but manufacturers have long lamented how difficult it can be to work with. For many of the reasons that it’s so useful – including in aerospace, chemicals, marine, medical and defence – making things out of titanium can be tricky. For example, its low heat conductivity and its hardness at high temperatures mean it’s ideal for jet engine parts, but also mean that machining it will see the cutting zone get very hot and this heat slow to transfer. An estimated 50 per cent of the cost M ofAa 0part 9 1made 4 _ 0of0titanium 0 _ P I –Ean expensive material to begin with – is

with other difficult materials such as from machining it. Try and go quicker Inconel and other alloys. and step up productivity and tools The CSIRO has been involved for will get damaged. At the same time, it’s indispensable several years with TAM, following work done by University of Swinfor many high-value applications. An burne through the CAST CRC. A380, for example, contains 77 tons of “The CSIRO project is basically titanium, with 11 of this in its engine. taking some of the information that A collection of Australians have CAST CRC initiated and produced had a crack at making titanium easier more data and get it to the next to work with, and a method known as stage of making a deployable, laserThermally Assisted Machining is edgassisted machine,” Dr Nazmul Alam, ing slowly towards commercial use. a research scientist/engineer who has TAM involves carefully and prebeen at the CSIRO since 1999, told cisely heating a titanium part before cutting, with the part becoming more Manufacturers’ Monthly. pliable (at 500 degrees Celsius, for Following its work for the F-35 example, the material’s strength Joint Strike Fighter through the New Program (and 1decreases 2 0 1 4by- 60 0 per 8 - cent) 1 2 Tand 1 1 mate: 1 8 : 3 Air 3 +Combat 1 0 : 0Capability 0 rial removal easier. TAM also has uses also involving Lockheed Martin,

14 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

Ferra Engineering and RMIT), the research organisation is now on the task through internally-funded research, and is working towards developing a prototype TAM unit. This will include a fibre optic C02 line laser. “It involves the laser beam in the form of a shape of a line has to move in the direction of the cutting,” explained Dr Alam. “And it will stay always ahead of the cutting tools.” This process has, accorded to the CSIRO, increased the speed of rough cuts by five times, and reduced costs by 80 per cent. At present, what they have is “not a real prototype”, but are partnering with H&H Machine Tools Australia –

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Wireless Pressure Sensors with data logger (RFID interface) Variable Capacitance Accelerometer for motion measurement of a robotic arm or an automotive suspension

Thermally Assisted Machining is edging slowly towards commercial use. a rarity as an Australian maker of CNC machining units – to deliver a prototype next year. The company has exported to destinations including India, the USA and Malaysia. Its customers have included ACNI (of China) and Boeing Aerostructures Australia, for which it has provided a 5-axis gantry machine, capable of handling parts up to 13 metres long and made of composites. The company’s specialty is gantrystyle CNCs, and the prototype will involve a milling head, incorporating a laser and motion system, to function on one of these. “This prototype that goes in the project can be used to retrofit an existing machine as well,” explained Dr Alam. He explained that there were two major sets of challenges, which described as of an engineering and research or technical type. In the first group he puts the motion control and incorporation of a line laser. (Previous attempts at the process had used circular lasers, though these left cold areas near the edges of where the beam would hit. This created extra work and wear issues for tools.) The other major challenge involved a set of issues around the optimal dispersion of temperature, which can impact the fatigue properties of the finished part. To this he then added issues of the right shaped cutting inserts and manmonthly.com.au

engineering around the dry cut used (no coolants are used in the system, only chilled air). If the Australian-made method of carefully heating titanium pre-cutting can be successfully brought to market, the benefits could be large. According to the CSIRO, the metal aerospace market is worth roughly $50 billion. Any solution that offers big savings and productivity gains in a market that size could be very sought after indeed. The solution is unique in the world, said Dr Alam, and when it reaches the final stage of the technology readiness levels, it is hoped it will provide a valuable edge to H&H among aerospace and other customers requesting superior, high-speed titanium machining. “H&H are a local manufacturer, a small company, and I think they have sold many milling machines,” said Dr Alam. “So they can provide some help in the integration and also in the design of the milling head. They are interested. They see an advantage.” [Brent Balinski has been a journalist at Manufacturers’ Monthly since 2012. He is particularly interested in 3D printing and innovation] H&H Machine Tools 03 9357 2368 www.h-h.com.au

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Materials HANDLING VIP leads the pack with robotic palletising Designing a new fully automated palletising line for a world-class packaging company required an innovative solution that integrated safety, automation and control.

ALLETISING in any manufacturing plant presents many operational challenges, from production efficiencies to safety considerations. This is particularly applicable to a company like VIP Packaging, a leading plastic and steel packaging company in Australia and New Zealand. VIP Packaging manufactures extrusion blow-moulded and injection stretch blow-moulded high-density polyethylene (HDPE), polyethylene terephthalate (PET) and low-density polyethylene (LDPE) bottles. The production facility manufactures packaging solutions for the food and beverage, personal care, household consumer and industrial chemical industries. The production line at the plant predominantly palletises bottles used for shampoos and laundry detergents. To minimise manual handling and gain production efficiencies, VIP Packaging called on Machinery Automation & Robotics (MAR) to deliver a solution to automate their palletising production line.

Hands-free palletising The VIP Packaging plant transfers packaging bottles that are arranged in pallets in a predesigned format that is suitable for transport directly to clients. These bottles can range in size from 500 millilitres to two litres and are delivered wrapped with clear plastic stretch wrap to ensure the bottles stay in position when transported. Adhering to occupational health and safety standards, improving productivity and generating labour cost savings were all important priorities for VIP Packaging. According to Geoff Biscaya, rigid containers general manager at VIP Packaging, “To remain competitive it was clear we needed to reduce labour costs by automating our downstream inspection, packing and palletising of our high volume blow moulding machines.”

The new automated system improved productivity and generated significant labour savings. Throughout this process there were three main palletising lines that would benefit from automation. These include the packaging handling, the pallet handling and the stretch wrapping. The challenge ahead was to design a system that could automate the entire palletising line and deliver not only the cost savings, but also improve quality control and safety. After studying the operation of the VIP system, MAR presented a fully automated system including three robots, pallet dispenser, twin shuttle, three vision system, fully automated HMI, automated pallet strapping system and pallet stretching machine which were all controlled by one central motor control centre from Rockwell Automation. In the VIP Packaging plant, plastic bottles are continuously transported on the conveyor to the palletising line where they are picked up by the robot and stacked in the pallet. Sensors are used to count the required quantity of bottles for each layer of

16 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

packaging. Once a layer is complete, the robot picks up a plastic slip sheet and places it on top of the layer of bottles. This process is repeated until the pallet is full; the robot then places a timber sheet on top of the pallet to keep the bottles in place. According to Merv Shirazi, project manager at Machinery Automation and Robotics, “The design of the grippers or claws on the robot arm was critical to the efficiency of the palletising process.” To stop the bottles that are packed in the pallet from breaking or slipping, the pallet is then automatically wrapped in clear plastic. Each pallet is then transported by shuttle to the loading dock and the empty pallet is returned.

It's all under control In any automated system, integration between the control and safety system is important but in a palletising line that is controlled by a single operator, complete integration is essential. PowerFlex 4M drives were

used to provide effective motor control for the conveyors and the entire robotic palletising system and was controlled by CompactLogix. According to Harish Ahuja, OEM account manager at Rockwell Automation, “The Rockwell Automation compact machine control platform provides cost-effective integration of a machine or safety application into a plant-wide control system because it integrates safety, motion, discrete and drive capabilities in a single controller, making it the most appropriate choice for this application.” The operator workstation features a user-friendly PanelView Plus 1000 touch screen Human Machine Interface (HMI), which is easy to navigate and incorporates a number of selection options. In addition to the primary control for the system start and stop function, the HMI also includes programming for the manual control of conveyors, manual control of the robot gripper, shift production data, error reporting, robot control and access control for maintenance and cleaning. “The programming of the system is simple and straightforward and it caters for a wide range of bottle design shapes and sizes. The control platform also includes integrated safety systems which deliver improved operator safety,” said Biscaya. When moving to an automated system, operator safety was a key priority so with this in mind the system was designed with six separate safety zones that require no supervision. Parts of the plant were required to operate 24 hours a day, 7 days a week, which is why reliability and minimising downtime was very important to VIP Packaging. This was addressed by designing and building the line to allow access to specific components that wear over time in a particular machine, without having to shut down the whole plant during routine maintenance. manmonthly.com.au

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the operator if too many bottles were rejected consecutively.

“The complete system including cycle times and other parameters were factory tested off-site prior to installation so we could minimise the risk of downtime. This ensured that the installation progressed smoothly which was very important to our business,” said Biscaya.

Counting the savings

Consistent quality control Maintaining superior quality control is essential to VIP Packaging, who is known for packaging solutions that not only offer outstanding performance but also differentiate and enhance their customers’ brand. Biscaya knew that automating their quality control systems would help them to maintain their reputation for superior quality packaging solutions and also introduce labour cost savings. “With the help of MAR we were able to integrate vision systems that could identify a number of bottle faults and reject those bottles. This automated M A 1 1quality 1 5 _ control 0 0 0 _system TSU was more consistent than the human

PanelView Plus 1000 touch screen Human Machine Interface is easy to navigate and incorporates a number of selection options. To confirm that the automated element which allowed us to lower system was working effectively, the the cost of each pallet through the as1sociated 2 0 1labour 5 - 1 savings 0 - 2 3 and T 1 reduced 1 : 1 3 : 5 HMI 5 + 1system 1 : 0 was 0 programmed to monitor and sound an alarm to alert packaging waste,” he said.

“We are continuing to realise the many benefits that the new automated system is providing. It has met all of our key requirements by allowing us to reduce labour costs, while also improving quality control and safety. In addition, the solution has established a low base cost to run the plant over time which helps to improve our productivity and competitiveness,” said Biscaya. The automation of the palletising line has resulted in significant labour savings, quality control and reduced running costs. The return on investment is approximately only two years, which will allow VIP Packaging to reap the rewards from the solution for many years to come. VIP Packaging 03 9577 4400 www.vippackaging.com.au

Chain Features 1

Lube Grooves (LG)

RS16B ~ RS24B

Precision Solid (Seamless) Bush

Centre Sink Rivet

Ring Coin Connecting Link

manmonthly.com.au

Manufacturers’ Monthly NOVEMBER/DECEMBER 2015 17

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Materials HANDLING Booktopia writes new chapter on WMS Following sustained growth, Booktopia decided it was time to update its old manual order picking system. Adept Conveyor Technologies was there to help out.

WARD winning on-line book retailer Booktopia is by any standard one of Australia’s success stories. Starting as a quiet achieving private company in 2004, it has grown from a modest $10 per day “family side project” to a staggering annual turnover in excess of $70 million in only 11 years. Coming to grips with an annual growth rate of 30 per cent is a problem most companies can only dream of in today’s industrial environment, however the challenges of coping with this level of growth, from a logistical perspective, is never the less quite a formidable undertaking. By putting together a project team that included, warehouse systems design company DCL, Sydney based specialist materials handling systems manufacturer, Adept Conveyor Technologies and Spectrum Automation, Booktopia was able to orchestrate a seamless transition from essentially a manual system of order picking into a facility that considerably boosted production and accommodated the growth levels now being experienced. Since moving into a new 10,000 square metre facility in Lidcombe NSW last year, $4 million dollars has been invested in phase one of a new system installation to improve efficient throughput by enhanced mechanisation of the process. This new installation has taken the order picking throughput from 8,000 units per day, before Christmas 2014, to a new automated facility which now handles 16,000 units per day. As you walk around the new facility you become aware of how much is being achieved and how streamlined and well managed the operation is, particularly when you take into account the level of activity that has taken place in recent months. The nerve centre of the operation is a bespoke warehouse management system (WMS) designed by Booktopia and integrated with logical functionality. Leading Australian materials handling company Adept Conveyor

This new installation has taken the order picking throughput from 8,000 units per day to 16,000 units per day. Technologies were chosen as the approved manufacturer tasked with the responsibility to install the automated system and a network of conveyors consisting of gravity, belt, high velocity line shaft rollers and energy efficient 24VDC pulse conveyors which are programmed to stop if no tote traffic is detected. Collectively this installation facilitates the constant flow of tote boxes to and from the pre-designated picking and packing zones. An additional $3 million dollar Phase 2 installation is already under consideration which is planned to accommodate anticipated future expansion and to become operational in 2016. This structure will incorporate a second level 1,000 square metre mezzanine floor which will be bolted onto the existing system and serviced by integrated floor to floor inclined conveyors. “Our responsibilities are not over once the conveyor installation is fully commissioned,” says Adept’s General Manager Jim Tzitziris: regular servicing and spare parts availability for maintenance of the system, if needed, will ensure down time is avoided when more demands are placed on the system over time.” The warehouse floor area is seg-

18 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

regated into zones with 50 per cent of the stock in 9 metre racks and 50 per cent in low level racking. Red, green and blue plastic tote boxes are utilised to represent specific traffic zones by transporting books to their designated locations directed by bar code scanners strategically located on the conveyor system. Three hundred units are picked per hour from the high rise racks utilising a scan reader gun. Three Crown wire guided order pickers fitted with one of ten Adept designed and manufactured steel “Cluster Pickers” which incorporates 15 tote box cells

and a platform from which the operator can fill from the high rise racking. Used cartons are managed by an overhead conveyor that transports the cardboard out of the warehouse, through a chute directly into a large recycling compactor skip. According to Booktopia’s Chief Operating Officer Phillip Haddad, the whole undertaking was carried out without holding up the normal day to day operations. In order to mitigate against any slowdown in service to our customers we needed to plan this transition very carefully. This was well managed by all the players but the conveyor system project management was particularly well engineered.” he said. Booktopia expects a ROI within 3 years and has now reached a stage where two-thirds of the original staff is able to run a system which produces an additional 50 per cent throughput of units per day. What the future holds for Booktopia is anybody’s guess but the way things are shaping up it is clear their success is well deserved and that there is a lesson to be learnt for all at a time where industry is somewhat apprehensive about capital investment in new systems. Adept Conveyor Technologies 02 9771 4655 www.adeptconveyor.com.au

Booktopia expects a ROI within 3 years. manmonthly.com.au

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Distribution& MARKETING Forging a new approach to steel distribution Recent research revealed that, in today’s steel supply and distribution market, a commitment to quality customer service is more important than ever. BlueScope Steel has taken note of this finding and changed accordingly.

“Stock availability, timely and reliable deliveries, product knowledge and innovative and flexible supply arrangements also factor heavily on any purchase decision. “A key finding was having access to someone who understood their business. “Our business challenge was therefore to look at how we structured our business to ensure firstly that we could focus on the key customer satisfaction factors, but also to make it easier for our customers to Bluescope has established a new model for the distribution of its products such as Colorbond connect easily with the highly experisteel. enced and knowledgeable people we leverages the “knowledge capital” of Scope Plate Supplies. Again, this have working for us.” BlueScope’s highly experienced peobusiness will continue to offer a A key component of the new stratple to deliver business improvement egy is a new structure for BlueScope’s broad steel product range, however recommendations for its customers. its future focus will be on delivering distribution businesses comprising The SER process includes an endcustomer focussed supply solutions to three distinct branded businesses. to-end business audit that focuses on meet the steel plate and coil needs of The familiar BlueScope Sheet the 7 most common areas of waste its customers. Metal Supplies business brand has within a manufacturing business In regional areas the company been retained and while continuing – over-production, time in waiting, will continue to operate under the to offer a broad product range, future transport, processing, inventory, moBlueScope Distribution brand. This investment in this business will be tion and re-work – and identifies bestis a reflection of the broader product geared towards further developing its practise recommendations to address and service offering required from a capability to provide enhanced steel individual customer circumstances. single supplier in those non-metrosupply chain solutions to meet cusOver recent years BlueScope politan areas. tomers sheet and coil steel products believe this program has proven to All three of these businesses will requirements. be very beneficial to those customers continue to provide an integrated BlueScope’s other metropolitan who have taken advantage of it in channel to market for the full range distribution businesses will progres1 2 0 1 4 - 0 3 - 1 3 T1 2 : 3 3 : 1 4 + 1 1 : 0 0 that it is delivering tangible, measurof BlueScope steel products includsively adopt a new identity – Blueable results that are impacting their ing market leading brands such as bottom line. Xlerplate, Tru-Spec, Zincalume And BlueScope’s spokesperson conColorbond steel. cluded – “At the end of the day we “We’re realigning our business want to create real partnerships with focus back onto those products where our customers and remove those elewe have a fundamental expertise, unments of supply chain risk that we derstanding and competitive advanhave control over. tage – namely the BlueScope range We ooffer We ffee cost effective solutions for your automation ff “We’re focussing on making sure of Australian made steel products,” tech te chno noll technology needs Australia wide. explained the company spokesperson. our customers get the right product, At IIS&E S&EE we specialise in systems integration and S& at the right time, at the right price “However, the change to our busiauto au toma ma automation projects, big and small. as well as easy access to the product ness is much more than just an exterFor mor more information phone us on 07 3856 2232. information, technical expertise and nal branding change to some sites. service they require.” A fundamental component of this INDUSTRIAL SOFTWARE & ELECTRONICS BlueScope Steel reinvigorated customer focus is exemTel: (07) 3856 2232 Fax: (07) 3355 1012 1800 800 789 plified by BlueScope’s innovative E-mail: info@industrialsoftware.com.au Web: www.industrialsoftware.com.au www.bluescopesteel.com.au Steel Efficiency Review (SER). This

LUESCOPE has restructured its distribution business and introduced a new business brand, BlueScope Plate Supplies. Explaining the newly restructured distribution model, a spokesperson for BlueScope ANZ Distribution explained the key aspects of the change. “Our fundamental driver has been a desire to enable the business to pursue a heightened focus on the needs of the customers,” the spokesperson said. “In the modern steel supply and distribution market, having a broad, quality product range is no longer the differentiator it once was. A commitment to delivering exceptional customer service is an imperative that must be continually delivered upon.” Before deciding upon the correct business model BlueScope undertook an extensive customer survey and research program. The program delved into the needs and attitudes of BlueScope’s distribution customers across all areas including manufacturing, construction, mining, infrastructure, engineering and resellers. “That research confirmed to us that contrary to popular belief price isn’t the only decision driver for our customers,” explained the spokesMM0 4 1 4 _ 0 0 0 _ I N D person.

SCADA SYSTEMS PC & PLC PROGRAMMING

20 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

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Exporting Japan beckons for manufacturing exporters There are worthwhile opportunities for Australian SME exporters seeking to enter the Japanese market. As Andrew Watson writes, there are a number of steps they can take to overcome any challenges they face.

USTRALIA has a close trade relationship with Japan, which provides a solid foundation for Australian exporters. As Australia’s second largest export destination, Japan offers a range of exciting opportunities for Australian manufacturers looking to sell their products and services.

Export demand With a population of 127 million, Japan is one of the world’s largest consumer markets with a high disposable income. With this comes demand for premium, high-quality goods that Australia is in a good position to help meet. A number of Australia’s key export industries, including manufacturing, mining, agriculture and services, have strong markets in Japan, providing a range of opportunities for Australian exporters in these industries. Wine and food manufacturing are two industries with particularly strong and growing demand from Japan.

improved access to the Japanese market. Research recently conducted by the Export Council of Australia, the Australian International Business Survey 2015, found that 64 per cent of Australian businesses that operate in Japan expect business to get better over the year ahead, pointing to a positive outlook for Australian exporters in Japan.

Easy market access

Overcoming export challenges

The opportunities available in Japan for Australian exporters were further strengthened by the signing of the Japan Australia Economic Partnership Agreement (JAEPA) by former Prime Minister Abbott and Japanese Prime Minister Abe in Canberra in July 2014. JAEPA entered into force in January 2015 and will provide Australian exporters with some advantages over their international competitors. JAEPA will deliver a number of direct benefits for Australian exporters. On full implementation, 97 per cent of Australian exports to Japan will be duty free, including almost all manufacturing, resources and energy exports. A number of agricultural industries such as beef, fruit and vegetables will receive gradual tariff reductions. JAEPA is expected to open up the market for Australian exporters from a cost perspective, making it easier for Australian firms to compete with both multinational players and local businesses. SME exporters seem to be picking up on this

Entering any new market can be daunting, and Japan’s local language and cultural differences may be preventing SMEs from considering the great opportunities Japan holds for many Australian businesses. However, there are a range of steps that Australian SMEs looking to export to Japan can take to help make their transition as easy as possible. One of the most valuable things SMEs can do when entering a new market, like Japan, is take the time to develop strong relationships. In the Japanese market, committing to a valued partnership is just as important as a legal contract in establishing a successful export relationship. In addition to building strong customer relationships, establishing a local network of partners can be invaluable when things go wrong in-market and you need people on the ground to help out. The Australian International Business Survey 2015 found that Australian SMEs are most likely to service their Japan market directly from Aus-

22 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

The bright lights of Japan hold attractions for Aussie exporters. tralia (61 per cent). This model of going to market ensures you can retain complete control over your export operation, but does mean you may need in-country partners to provide support – building a strong local network can help this. Finally, it’s important to do plenty of research to ensure you fully appreciate the cultural differences in the Japanese market. Business etiquette in Japan is important and the Japanese place great importance on respect and social rank. Knowing the local social customs will help ensure you start your export relationships off on the right foot.

Set up for success With Japan and Australia’s close trading relationship, and the recent Japan Australia Economic Partnership Agreement opening up the Japanese market even further, there are numerous opportunities for SME exporters to capitalise on in Japan. SMEs entering the Japanese market should take the time to research and prepare thoroughly ahead of time to ensure they set themselves up for export success. [Andrew Watson is Executive Director, Export Finance at The Export Finance & Insurance Corporation (Efic)] Efic 1800 093 724 www.efic.gov.au manmonthly.com.au

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EPA007_PR_B_ManufacturersMonthly_297x235mm_F_O.indd 1

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IndustryOVERVIEW The tide is turning

Despite the demise of our auto industry, 2016 looks set to be a positive experience for most manufacturers. Alan Johnson reports.

HAT a difference a year makes. Gone are the gloom and doom scenarios I wrote about 12 months ago, instead the industry is far more upbeat and positive with many CEOs talking expansion rather than contraction. Innes Willox, CEO of the Australian Industry Group, believes the manufacturing sector is doing far better than the official data suggests and that there are real signs, particular with the lower dollar, the sector is able to compete much more strongly. “There are some very clear green shoots within the sector; think food, think medical technology, think clean technologies, plus many others. “There are also some clear signs, with the low dollar, that a lot of work is coming back to Australia, plus more Australian manufacturers are in a much better position to export,” Willox told Manufacturers’ Monthly. However with the demise of our auto industry, Willox said we have to work our way through this structural change and is calling on the Turnbull government to put in place the right conditions for manufacturers to compete and to support the whole economy. “If we are to remain a high-wage economy, we need to have the right

conditions to support business, with support around infrastructure, skills and policies to support innovation.” Willox said it’s important that the government recognises that all manufacturers can be innovative or can take advantage of innovation. “It is the role of government through the tax system to make sure there are opportunities for companies to compete. “All of these policy levers are woven together to create the possibilities for manufacturers to grow,” Willox said. His message to Industry Minister Christopher Pyne is that manufacturing remains a core part of the economy and is the source of a whole range of other activities within the economy. “Manufacturing is crucial, and is undergoing change, but there are a lot of positives out there,” he said. Willox is reasonably upbeat about 2016, foreseeing exports as a main contributor to manufacturing’s success. “However we will see two competing forces; hopefully a continuing low dollar, which is positive, but we will also see the decline of the automotive sector, a real negative, which will impact confidence and perceptions of the sector.

24 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

Exports are expected to be the main contributor to manufacturing’s success in 2016.

“Other forces at play will include continuing automation as a trend and the growth of a differing economy, plus of course next year is an election year with a lot of focus on industry policy, workplace relations and taxation,” he said.

Automotive Around this time last year Willox described the manufacturing sector as being in Act 1 of a three part play. Well apparently we haven’t progressed too far, as this year he told Manufacturers’ Monthly that Act 2 won’t be starting till 2016. “We still haven’t seen the slow wind-down then the actual demise of automotive manufacturing and assembly here in Australia.” He said that event will have a huge impact in terms of employment, loss of skills and management capability, and loss of innovation that comes from that sector. “And that will have a huge impact on the economy, but balancing that is the decline in the Australian dollar since this time last year, which has allowed other parts of the sector to compete. “That will take some time to flow through but we are certainly more bullish on the overall prospects for

the sector than the official data would suggest.” Based on the organisations own data, Willox believes the manufacturing sector has been in moderate expansion for the past three months, off the back of the low Australian dollar. “Plus we have a lot of anecdotal stories from our members who are finding new markets and developing new products,” Willox said. He said that while much of the focus has been on the three OEMs, the supply chain is massive and support for these companies is crucial. “There are a lot of opportunities there, both for continuation in the automotive sector in global supply chains and for the development of new products in other sectors.” Willox applauded the former Industry Minister’s extension of the Automotive Transition Scheme (ATS) to 2018, but questions the underspend and how that money can be used to assist the broader manufacturing companies to innovate. “There is a key role for that ATS money to be spent within the sector to allow the sector to adapt to changing circumstances.” He admits some companies in the automotive sector will not survive the manmonthly.com.au

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transition, but said there is clearly a role for government to do more to assist companies in that transition. “Otherwise we are going to lose an enormous amount of capability, not just from the sector but from the economy as a whole. Willox said there is a clear role for the government to help companies to identify opportunities and then to take advantage of these opportunities. “That is why other programs such as the Export Market Development Grants (EMDG) scheme are very important as well. “While we have a low dollar, now is the time for government to be putting as many resources as possible in assisting companies to take advantage of that low dollar to set up markets.” Economists at the Ai Group believe the Australian dollar may fall a little bit more, but not excessively more. “We believe it will find a point of stabilisation around where it’s now, which of_our M to A 0many 3 1 5 0 0members 0 _ B A is Ca sweet spot.

manmonthly.com.au

still to be made by the government, Willox describes the submarine contract as crucial to Australia’s manufacturing industry. “As much work as possible should be done in Australia, even before the build begins, and this should include technology transfer and upgrading of skills.” With 70 per cent of the spend dedicated to sustainment, Willox said we need as much of the knowledge local as possible to allow that sustainment to be as smooth as possible. “There is no reason, given our history of submarine assembly and sustainment, that much of the work can’t be done here.” There are some clear signs, with the low He admits there will be challenges dollar, that a lot of work is coming back to with different systems and technoloAustralia – Willox. gies, but said the only other option, “We see no reason for the dollar to apart from sustaining them here is to move rapidly up or down in the short take them back to Japan, Germany term,” Willox said. or France for repair and that is not feasible. “We need as much of the work as Submarines be0done here, within rea1While 2 0the 1 5decisions - 0 2 - to 1 0who T 1will 1 :do 1 9 : 0 possible 3 + 1 1 to : 0 son, right from the start, which could the build and how it will be built are

include sending the workforce to wherever the subs come from and get them engaged from the start there.” Willox said Malcolm Turnbull’s transition to Prime Minister has been very positive for members. “It is being seen by manufacturers as an opportunity for a fresh start, with his focus on innovation, which is very welcome. “But also we can have a fresh start on some of the structural issues such as industry policy, tax and skills policy and the general attitude to the sector is now up for a refresh, and that is seen as a very positive move by the sector,” Willox concluded. [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] Australian Industry Group 1800 722 420 www.aigroup.com.au

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Top 100 Manufacturers in Rank (Prev Year) 1 (1) 2 (2) 3 (4) 4 (5) 5 (6) 6 (8) 7 (7) 8 (12) 9 (10) 10 (14) 11 (9) 12 (NA) 13 (11) 14 (17) 15 (13) 16 (15) 17 (16) 18 (18) 19 (20) 20 (19) 21 (22) 22 (25) 23 (21) 24 (23) 25 (27) 26 (24) 27 (28) 28 (NA) 29 (32) 30 (41) 31 (43) 32 (31) 33 (30) 34 (38) 35 (35) 36 (39) 37 (45) 38 (36) 39 (34) 40 (42) 41 (37) 42 (26) 43 (44) 44 (40) 45 (47) 46 (48) 47 (68) 48 (57) 49 (53) 50 (52)

Company (Balance Date)

Revenue (’000)

Previous Year Revenue (’000)

NPAT (’000)

Previous Year NPAT (’000)

Caltex (Dec 14) BP Australia (Dec 14) Fonterra Co-op Group (July 15) Amcor (June 15) ExxonMobil Australia (Dec 14) BlueScope Steel (June 15) Toyota Motor Corp (Mar 15) CSL (June 15) Orica (Sept 14) Perth Mint (June 15) Sims Metal Management (June 15) Viva Energy (Shell) (Dec 14) Arrium Mining/Materials (June 15) Visy Industries (June 15) Lion Nathan National Foods (Sept 14) Coca-Cola Amatil (Dec 14) Boral (June 15) ConocoPhillips Australasia (Dec 14) Alcoa of Australia (Dec 14) GM Holden (Dec 14) JBS Australia (Dec 13) Orora (June 15) Incitec Pivot (Sept 14) Devondale Murray Goulburn (June 15) Teys Australia (June 15) Ford Australia (Dec 14) Nufarm (July 15) Inghams (June 14) Food Investments (Aug 14) Ansell (June 15) James Hardie Industries (March 15) Nestle (Dec 14) Goodman Fielder (June 15) CSR (March 15) Carlton & United (March 15) Treasury Wine Estates (June 15) Siemens (Sept 14) Wilmar Sugar (Dec 14) Hanson Australia Holdings (Dec 14) Asahi Holdings (Dec 14) Mondelez Australia (Dec 14) MML Holdings (Dec 14) Unilever Australia (Dec 14) Holcim Australia (Dec 14) Dulux Group (Sept 14) Johnson & Johnson (Dec 14) Parmalat Australia (Dec 14) ResMed Holdings (June 14) Aust Consolidated Food (June 14) Baiada Poultry (June 15)

24,240,160 22,497,000 17,364,366 9,776,000 9,469,000 8,564,500 8,294,937 7,309,815 6,887,000 6,622,624 6,376,900 6,269,600 5,986,800 5,600,000 5,070,300 5,034,100 4,360,000 4,078,335 3,891,000 3,709,532 3,641,113 3,427,300 3,411,300 2,994,000 2,914,796 2,810,804 2,756,296 2,392,790 2,199,922 2,192,035 2,178,281 2,137,483 2,069,700 2,065,600 2,005,700 1,973,100 1,933,269 1,848,700 1,832,700 1,778,907 1,748,223 1,682,150 1,660,122 1,643,601 1,618,300 1,557,787 1,533,655 1,528,650 1,490,344 1,470,000

24,730,148 22,579,000 20,541,338 11,011,100 10,241,000 8,171,800 8,517,764 5,856,697 6,975,300 5,179,759 7,165,400 NA 6,607,600 4,400,000 5,228,600 5,119,900 4,496,800 4,270,250 3,694,100 4,153,707 3,295,479 2,675,800 3,463,200 2,947,000 2,600,000 2,918,590 2,638,636 NA 2,141,035 1,704,965 1,617,909 2,150,613 2,217,100 1,805,300 2,007,800 1,798,900 1,554,472 1,894,300 2,016,300 1,636,359 1,809,691 2,670,261 1,573,745 1,774,388 1,495,462 1,467,554 1,120,003 1,236,445 1,320,100 1,378,400

19,931 -207,000 420,528 680,300 181,000 136,300 194,331 1,791,087 602,500 14,059 109,900 162,300 -1,918,200 NA 188,500 272,100 257,000 652,387 215,700 -269,362 240,538 131,400 247,100 NA NA -190,704 43,220 92,383 16,285 243,531 382,433 104,521 -344,400 125,500 233,800 77,600 46,171 68,100 139,800 -53,338 168,114 246,366 85,589 95,150 104,528 71,597 34,025 505,694 30,866 NA

530,028 374,000 143,550 564,800 553,000 -82,400 -437,295 1,385,642 601,600 17,220 -88,900 NA 205,400 NA -229,100 79,900 173,300 1,038,496 259,500 -538,146 76,607 -72,200 372,000 NA NA -266,724 37,707 NA -24,578 44,315 107,336 149,478 -405,100 88,100 208,700 -100,900 44,471 71,400 108,200 -156,108 117,703 95,982 57,841 175,700 76,926 48,891 56,420 326,850 3,471 NA

26 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

Employees Previous Year Employees NA 6624 22000 27902 1846 NA NA NA 14000 410 NA 1235 7847 10100 6746 14700 8356 1007 NA NA 7721 5600 5064 2400 4773 NA 3349 8393 6835 NA 3178 NA 5474 3134 1758 NA NA NA NA 2500 3056 NA 1190 2981 4000 1800 2150 2592 4000 NA

3638 7213 18200 27679 1929 NA NA 12196 14500 363 6000 NA 9269 9600 7125 14500 8953 792 NA NA 7257 5500 5286 2268 4795 NA 3445 NA 8000 NA 3140 NA NA 2985 1847 NA NA NA NA 2500 3242 NA 1581 3503 NA 1600 1847 2431 4000 3734 manmonthly.com.au

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rs in Australia Rank (Prev Year) 51 (66) 52 (51) 53 (58) 54 (49) 55 (56) 56 (55) 57 (62) 58 (64) 59 (60) 60 (46) 61 (54) 62 (59) 63 (61) 64 (65) 65 (72) 66 (69) 67 (73) 68 (71) 69 (79) 70 (70) 71 (63) 72 (75) 73 (50) 74 (83) 75 (74) 76 (77) 77 (81) 78 (82) 79 (80) 80 (78) 81 (85) 82 (107) 83 (84) 84 (88) 85 (86) 86 (98) 87 (146) 88 (87) 89 (104) 90 (76) 91 (89) 92 (97) 93 (90) 94 (99) 95 (91) 96 (95) 97 (121) 98 (96) 99 (101) 100 (92)

Research by IBISWorld

Company (Balance Date)

Revenue (’000)

Previous Year Revenue (’000)

NPAT (’000)

Previous Year NPAT (’000)

Austal (June 15) Mars (Dec 14) Adelaide Brighton (Dec 14) BAE Systems Australia (Dec 14) Manildra Group (June 15) ABB Group (Dec 13) Pact Group (June 15) SunRice (April 15) Simplot Australia (Aug 14) Nuplex Industries (June 15) Pfizer Australia (Nov 14) BOC (Dec 14) Frito-Lay Aust (Dec 14) Bega Cheese (June 15) Boeing Australia (Dec 14) AstraZeneca (Dec 14) Arnotts Biscuits (Aug 14) Thales Australia (Dec 14) NH Foods Australia (Mar 15) Kimberly-Clark Pacific (Dec 14) Bradken (June 15) Pentair (Dec 13) GlaxoSmithKline (Dec 14) Cochlear (June 15) ASC (June 14) Ridley (June 15) Aspen Asia Pacific (June 14) Aristocrat Leisure (Sept 14) PACCAR (Dec 14) Owens-Illinois (Dec 14) Australian Paper (Dec 14) H J Heinz Australia (Dec 14) Merck Sharp & Dohme (Dec 14) Brickworks (July 15) Qenos Holdings (Dec 14) Airbus Australia (Dec 14) Bindaree Beef (July 15) Bridgestone (Dec 14) Sun Metals Holdings (Dec 14) Joy Global (Oct 14) Bayer Australia (Dec 14) Fisher & Paykel (March 15) Roche Products (Dec 14) Weir Group (Jan 15) Asaleo Care (Dec 14) GUD Holdings (June 15) Kilcoy Pastoral (June 15) Honeywell (Dec 14) BASF (Dec 14) Norske Skog Ind Aust (Dec 14)

1,446,763 1,391,956 1,363,900 1,349,509 1,300,000 1,255,216 1,253,271 1,247,117 1,242,522 1,223,061 1,212,921 1,189,305 1,127,203 1,120,491 1,104,722 1,080,159 1,041,153 1,037,460 1,034,721 1,032,270 998,108 968,598 951,977 930,358 918,299 914,771 865,189 859,097 855,295 800,900 786,719 775,766 767,784 727,094 724,089 706,833 705,000 703,724 696,207 679,615 672,750 664,010 645,961 636,794 634,226 616,909 600,996 591,972 585,162 564,089

1,145,271 1,337,325 1,232,700 1,466,214 1,250,000 1,270,607 1,160,050 1,152,720 1,200,215 1,540,265 1,317,234 1,212,021 1,143,286 1,145,701 1,024,777 1,109,007 997,313 1,034,929 842,577 1,097,003 1,153,982 907,651 1,465,621 807,792 920,570 879,827 828,972 821,171 834,997 878,300 775,793 538,672 778,542 674,249 715,858 583,711 571,000 697,084 556,721 904,024 646,649 587,957 642,943 580,431 637,165 596,703 506,179 589,848 564,696 626,515

53,225 155,682 172,700 47,106 NA -129,653 67,632 43,425 31,768 62,351 -130,111 170,096 49,495 12,408 85,431 57,958 -32,676 70,949 120,709 -117,175 -241,295 -163,995 -126,670 145,840 -3,757 21,171 105,764 -16,429 96,040 -13,400 -37,494 12,093 46,956 78,090 3,249 32,934 NA 16,983 37,028 -565 -6,847 110,921 33,278 43,512 2,986 33,245 24,649 70,822 -1,211 -20,036

31,548 138,928 151,100 61,915 NA 455 57,689 29,730 41,959 48,636 3,415 209,932 51,215 66,055 75,679 52,360 65,975 77,981 59,414 24 21,480 -27,144 35,631 93,709 9,862 17,613 100,161 107,200 99,601 33,700 -26,555 -12,330 33,465 102,755 -26,106 25,415 NA 21,421 -7,231 28,767 18,160 90,851 24,392 56,244 23,056 17,684 28,519 81,488 -10,447 -78,898

manmonthly.com.au

Employees Previous Year Employees NA 1700 1409 NA 1100 2728 NA 2292 2774 1733 1120 NA 1768 1700 3050 908 5200 3284 1839 1106 NA 1914 1476 2632 2600 685 NA NA 695 1590 1308 735 512 1468 688 NA NA NA NA 1209 NA 3151 343 1500 1030 NA NA 1500 462 NA

NA 1700 1300 NA 1000 2838 NA 2250 2655 1900 1200 NA 1812 1700 3103 888 5000 NA 1736 1256 NA 2238 NA NA 2400 658 837 2173 778 1599 1344 936 720 1478 697 NA 689 NA NA 1581 NA 3012 337 1215 NA 1437 735 1500 476 NA

Manufacturers’ Monthly NOVEMBER/DECEMBER 2015 27

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Top 100 Manufacturers in Australia Manufacturing’s winners and losers Despite a falling dollar, not everyone in manufacturing will be popping champagne corks this Christmas. Alan Johnson reports.

HILE Australian manufacturers still face considerable competition from our South East Asian neighbours and beyond, the lower Australian dollar has eased the stress levels for most senior management as we move into 2016. But not by much, according to Spencer Little, senior industry analyst with IBISWorld, one of Australia’s richest sources of business information, it will be another tough year ahead for most manufacturers. “Import competition is set to remain strong in numerous local manufacturing sectors,” he told Manufacturers’ Monthly. “Overseas manufacturers particularly in China and other SE Asia countries operate with far lower labour and overhead costs that can be passed onto their customers both locally and globally in the form of lower product prices.” Little said Australian players are finding it harder to compete on price, and this is contributing to the decline of the sector, though figures suggest this downward trend will ease, with the sector expected to decline by just 0.1 per cent in 2016/17. He admits the lower Australian dollar has improved the global competitiveness of local manufacturers, but says because most overseas players operate with far lower overheads and wage costs it makes it very difficult for local manufacturers to compete. On the positive side, IBISWorld analysts are predicting the Australian dollar to continue depreciating quite steadily over the next five years. But overall, manufacturing remains a struggling sector.

Winners and losers Taken as a whole, there are far more manufacturers on the negative side of IBISWorld’s Top 100 list than positive. One exception is the food manufacturing and processing industry which in general is doing very well and bolstering up the rest of the manufacturing sector; mainly driven by exports.

Mining machinery manufacturing is now in steady decline. Looking at the current financial year, 2015/16, Little says the biggest winner in the manufacturing sector is the meat processing industry with revenue expected to grow around 11.8 per cent. “Many meat processors have been able to pass on the high cost of red meat to domestic buyers, plus they have been able to exploit very high world prices by selling into the inter-

28 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

national export market, particularly in South East Asia.” He said demand for Australian meat, and Australian produce in general, is very strong in these markets. “The trend of strong demand and rising prices has really assisted the meat processing industry over the past 12 months or so,” Little said. Other winners in this year’s Top 100 manufacturing report, with

strong growth, are milk powder manufacturers. Little said they are also experiencing rising demand from overseas markets, plus milk powder prices have rebounded from a very low base. That’s almost where the good news ends, for even the $3.4bn beer industry is struggling and has found itself on the other side of the revenue ledger with revenue set to decline in manmonthly.com.au

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TOP FOOD MANUFACTURERS

TOP CHEMICAL MANUFACTURERS Revenue ($billion)

Fonterra Co-op Group

Revenue ($billion)

8 Orica

7 6

4 Unilever Australia

Teys Australia-A Cargill JV

Simplot Australia

Parmalot Australia

Nestlé

Mondelez Australia

Mars

Manildra Group

H J Heinz Company Aust

Goodman Fielder

Frito-Lay Australia Holdings

Food Investments

Bindaree Beef

Bega Cheese

Devondale Murray Goulburn

Import competition is set to remain strong in many local manufacturing sectors – Little. manmonthly.com.au

3 2 1

BASF

Qenos Holdings

Bayer Australia

the current year by 1.1 per cent. However this decline is not from cheap imports but more a shift in consumption trends and a shift in preferences by consumers. Little said overall consumption of alcohol in general has declined, but the decline in beer consumption is even higher. Apparently beer consumption has fallen from 108L per person per year in 2008/9 to 92.4L in 2013/14; the lowest level in 70 years. “Consumers are moving to drinking more wine and cider, and at the same time beer drinkers are moving away from the traditional brands such as VB and Carlton Draft to the more premium, craft beers with a focus on American and European styles which haven’t really been produced in Australia before. “These premium beers have a higher price point and are bolstering up revenue,” Little said.

Incitec Pivot

Another industry not traditionally in negative territory is Australia’s petroleum industry with domestic capacity set to reduce in the current financial year. Little said revenues are predicted to decline by around 16.7 per cent; “a substantial drop”. Not so dramatic is the industry revenue fall of both organic (chemicals such as ethanol, methanol and ether) and in-organic (chemicals used in industrial processes such as acids, dyes and pigments) chemical manufacturing. Little said both sectors are expected to decline by about 1.8 per cent. “Over the past year or so industry players have been affected by volatile chemical prices, the rationalisation of the global chemical market and increasing competition from cheaper chemicals from Asian countries.” He said revenue of the organic chemical manufacturing sector is expected to drop by around 1.2 per cent annualised to reach $2bn over the next five years. However, over the next five years, revenue of the in-organic chemical manufacturing sector is expected to rise at around 1.1 per cent annualised to reach $2.6bn. “The sector’s growth is expected to be driven by the product segments that service the resource sectors, with production ramping up at many of these mines that have been developed over the past five years or so,” Little said. Not surprisingly, with Holden, Ford and Toyota ceasing production in a couple of years, the motor vehicle manufacturing industry will see a massive drop in revenue given they

make up the majority of the industry. Little predicts revenue to decline at a compound annual rate of around 28 per cent, to reach $1.9bn over the next five years. “This is underpinned by exits of the three major players; with Toyota holding the market share of over 35 per cent, Holden has around 16 per cent while Ford has around 9 per cent.” However M A 1 1 Little 1 5 _ points 0 0 0 _out B the O K mo-tor vehicle manufacturing industry

includes, buses and heavy trucks as well as passenger vehicles. “We will still have PACCAR Australia, who manufactures commercial vehicles sold under the Kenworth, Peterbilt and DAF nameplates, and Iveco trucks.” The auto industry also includes recreational vehicles (RVs) which are experiencing very strong demand, from 30-54 year old Australians in 1particular. 2 0 1 5 - 1 0 - 2 7 T1 1 : 1 8 : 2 2 + 1 1 : 0 0 Production statistics for June >>

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Top 100 Manufacturers in Australia >>

2015, for example, show an increase in production of 13 per cent compared with June 2014, with YTD production 8 per cent higher compared to 2014’s figures. These production figures for 2015 are on the back of the second highest yearly production in two decades last year. YTD production is the highest it has been in over five years. In contrast, the mining machinery manufacturing sector is in steady decline, falling from its peak in 2012/13 during the mining investment boom. Little predicts revenue in this sector to decline by around 6.4 pe cent in the current year. “This obviously stems from weaker investment in the mining industry as miners move away from expansion projects and are now focusing on extracting the minerals and resources. “On the other hand, the agriculture machinery manufacturing sector is performing well, though we are still forecasting a slight decline in the current year. But the industry has

Revenue of the meat processing industry is expected to grow by around 11.8 per cent. grown 2.3 per cent annualised over the past five years.” Little said this sector has struggled due to the fluctuating commodity prices and negative weather conditions.

TOP NON-METALLIC MINERAL PRODUCT MANUFACTURERS Revenue ($billion)

Boral

4 3 CSR

James Hardie Industries

Adelaide Brighton

Brickworks

On a more positive note, the clay brick sector of the building and construction supply manufacturing industry, is expecting revenue to rise by 6.4 per cent in the current year. “The performance of local brick manufacturers has improved with a recovery in residential housing construction, which is really caused by a number of factors including low interest rates, pent up underlying demand, and population growth. “Plus the bulky, low value of clay bricks tends to preclude long distance transport, meaning the sector has no competition from Asia. “But while that does protect the sector, at the same time it restricts export opportunities. Though we do export a number of clay bricks to New Zealand,” he said. Little also pointed to the ready mix concrete sector as another star in

TOP PHARMACEUTICAL MANUFACTURERS

TOP MACHINERY MANUFACTURERS Revenue ($billion)

Revenue ($billion)

CSL

Siemens

7 6

ABB Group

BAE Systems Australia

1.5

the building and construction supply manufacturing industry. While its revenue is predicted to remain pretty flat in the current year, with demand conditions softening as investment in new mine developments fall, the industry has grown at around 1.7 per cent annualised over the past five years and has been a steady supplier to residential and non-residential buildings that has underpinned this growth. “Looking ahead, over the next five year period, the Ready mix concrete industry is set to remain a little bit more subdued growing at around 0.2 per cent annualised,” Little said. With BlueScope’s Port Kembla operation in the news, it’s no surprise to learn revenue of the $9.8bn steel making industry has declined 7.5 per cent over the past five years as it struggles against cheap imports. Little explained that steel manufacturing in Australia is dominated by two players, BlueScope and Arrium, who both hold 20 per cent of the market. Going forward, the news does not get much better for the industry with the decline set to continue, but at a slower rate. Little predicts steel making revenue to decline at around 2.3 per cent over the next five years. [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] IBISWorld 03 9655 3881 www.ibisworld.com.au

Aspen Asia Pacific

AstraZeneca

GlaxoSmithKline

0 30 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

Johnson & Johnson

Bradken GUD Holdings

Merck Sharp & Dohme (Aust)

Pfizer Australia

Roche Products

Honeywell

0.5

0 manmonthly.com.au

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Top 100 Manufacturers in Australia Industry gets some backing in Parliament A new political party aims to encourage better support for two vital sectors of our economy; manufacturing and farming. Alan Johnson reports.

HERE’S little chance Senator John Madigan’s new Manufacturing and Farming Party (MFP) will ever be able to compete with the major political parties, but you can’t question the former boilermaker’s passion for these vital sectors. He believes it’s time that Australia acknowledges our manufacturers and our farmers as the foundation of our economy. “Without our manufacturers and farmers, no other economic activity is possible.” According to Senator Madigan, MFP is a party to unite all Australians behind that which has and will continue to make this country great. “This is a party to encourage debate about manufacturing and farming, and to encourage better support for these two vital sectors of our economy. “The question is not can we afford to buy Australian-made, but can we afford not to?” One of his party’s more agreeable policies for industry is to halve the company tax for all companies that manufacture in Australia. He also calls for all trade agreements to be conducted more openly and with more transparency. “Australia should only sign trade agreements with countries that enforce minimum labour standards that are comparable to conditions in Australian workplaces,” he said. Madigan explained that the acceptance of MFP was granted earlier this year and he is now in the process of getting the party’s membership process in place. “With a trade background, I have a strong passion for manufacturing and I can’t understand why there is no empathy with what manufacturers, farmers and food processors do, and the social, economic and environmental benefits of them doing it. “There is plenty of talk about the service industry; but service what? “How do they actually create wealth, self-esteem and self-respect

Senator John Madigan’s new Manufacturing and Farming Party would halve the company tax rate for all companies that manufacture in Australia. for people? They consume they don’t create, while manufacturers value add.” The Senator outlined the fact that the wealthy countries in the world have a strong and vibrant manufacturing sector, “and so should Australia”. “We don’t want to turn Australia into a country where we simply dig holes in the ground, turn our children into drink waiters and educate our competitors in how to bury us.” Senator Madigan’s passion for local manufacturing includes his decision in 2013 to denounce his pay rise, opting instead to establish a program to buy Australian-made trade equipment for schools. Since then, he has donated over $30,000 worth of Australian made equipment to 11 schools, including welding equipment, drills and hoists.

Government’s role When it comes to government procurement, the Senator believes much more can be done to promote local

32 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

industry, at all three levels. While not keen on setting a loading figure, he says governments of all persuasions are very good at imposing regulations on Australian manufacturers, “but they are not good at supporting them”. “There needs to be a proper analysis on the multiplying effects and the payback from government departments purchasing Australian made products . “There needs to a formula developed where the government departments don’t just asses the unit price, but include the social, economic and environmental benefits,” he told Manufacturers’ Monthly. The Senator would also like to see the government do more to protect the manufacturing industry from non-compliant products coming into Australia. “Products such as electric cables and some steels, which are not fit for purpose, are flooding into the country. We need to be looking at issues around compliance to standards.”

He is also critical of overseas manufacturers dumping their products here, and questions why the burden of proof is on the Australian manufacturer. “By the time the dumping mob acts, it’s all over for many businesses,” he said. The Senator also questions the level of scrutiny an Australian manufacturer must go through. “Is the same level of scrutiny given to the assurances given by the Chinese or other foreign companies as to what is coming into the country?” Madigan asked.

Industry support While he sits on the other side of politics, Senator Madigan is confident Christopher Pyne, Australia’s new Industry Minister, will be a strong supporter of the manufacturing sector. “He is no dill. Earlier this year, when he was Education Minister, he visited a school with me as part of my AMFP (Australian Manufacturing manmonthly.com.au

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and Farming Program) and was very engaging.” The Senator is hoping to show Pyne the depth of engineering and innovation in Australia’s manufacturing industry. He explained that the industry is not asking for handouts. “They just don’t want to be continually kicked in the head.” Instead, he believes there needs to be more assistance for manufacturers. “Even with the ATS (Automotive Transition Scheme), it can be difficult to access. “On one hand the government is saying it’s for people in the car industry,

“

Pa ge

2 0 1 5 - 1 0 - 2 0 T0 9 : 1 1

on a social, economic and environmental front. “We have some incredibly innovative people here, so why do we sit back and let them be driven off-shore?”

Support for ASC Unsurprisingly, the Senator is a strong supporter of the ASC (Australian Submarine Corporation) and scoffs at the idea that they ‘could not even build a canoe’. “The fact is a lot of the problems attributed to the Collins Class submarines, such as the jet propulsion systems and the troublesome seals, were not manufactured here.”

The question is not can we afford to buy Australian-made, but can we afford not to? – Senator John Madigan... but if they want them to transition from the car industry into new fields they must be aware it all takes time. “The government has got to understand that the time to produce a new product from concept to design to prototype and then taking it to market can take a considerable amount of time.” The Senator pointed to Bosch Australia, and said the company is a prime example of what can be achieved (see October issue of Manufacturers’ Monthly). “They are now manufacturing all the diodes for Bosch’s supply chain, plus selling them to other global manufacturers.” He believes we should be nurturing these types of companies and be looking at the payback with high quality, well-paid jobs. “If the government gives them some assistance or a tax break, the payback is better than having the workers unemployed and all the problems that can lead to. “These are the factories of the future. Gone are the days of factories employing thousands of people in Australia. “Instead we can have really good quality jobs at 100 businesses, for example, employing 10 to 50 people each, all making an enormous contribution manmonthly.com.au

He pointed out that the problems with the welding on the first Collins sub was done overseas, “but we had to fix it”. “It was the same with the leaking seals when the submarines went out on sea trials; they were not made in Australia. “Same with the noisy propulsion systems, they were also fully imported, but we had to fix them because the people who made them couldn’t.” Senator Madigan is quick to highlight some of the innovative work being conducted on the Collins submarines, pointing to the ASC performing a cylindrical cut on the rear section of the submarine so they can remove the propulsion diesel motor in one piece rather than the time consuming method of removing the motor in pieces. “This technique, and the welding procedures ASC has developed, has never been used before anywhere else in the world. But now other Navies around the world are starting to adopt this innovative technique. “It’s a fantastic process, where they have huge electric induction heaters, like blankets, to pre-heat the plates to be welded. It’s up there with the best in the world. “When I hear people talking about how poor our manufacturing is, they don’t know what they are talking about,” Madigan concluded.

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WomenIN INDUSTRY AWARDS The Women in Industry Awards The Women in Industry Awards have launched for another year, focusing on women excelling across a number of fields.

OMEN 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. The 2015 Women in Industry Awards recognise and reward the achievements of women working in the industrial sectors, and aims to raise the profile of women within industry, as well as promote and encourage excellence. Manufacturers’ Monthly has teamed up with M A Australian 1 1 1 5 _ Mining 0 0 0 _and WI PACE I to acknowledge women who have

achieved success through their invaluable leadership, innovation and commitment to their sector. The program aims to recognise women who are leading change in make a contribution to other women their chosen field and breaking down in the industrial sectors. the barriers in what can often be Any women working in the inmale-dominated industries. dustrial sector can enter the awards, And with so many thought-leaders with the event culminating with a together in one room on the night cocktail event to be held next year. of the awards, it provides a forum So help us recognise the women for women to meet and exchange making a difference today! information, ideas and solutions to problems and offers individuals an Event date: 23 June 2016 opportunity to expand personal and 1business 2 0 1 networks, 5 - 1 1 - maintain 0 6 T 1 2aware: 0 3 : 1 Nominations 9 + 1 1 : 0 0open: 8 Feb 2016 Nominations close: 22 April 2016 ness of industry developments and

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CATEGORIES • BDM of the Year • Employer of the Year • Excellence in Engineering • Excellence in Manufacturing • Excellence in Mining • Industry Advocate • Marketing/Communications • Mentor Award • Rising Star Award • Social Leader

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Event date: Thursday 23 June 2016

For more details and to nominate visit: www.womeninindustry.com.au Proudly sponsored by 34 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

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Motors& DRIVES Gearing up for quick changes They might not yet be matching the times of Formula One pit crews, but railway maintenance teams are set to do their work in record time. This is due to new processes made possible by equipment developed specifically for the purpose.

RIVEN by the flexibility and precision of the SEWEurodrive Movidrive B drive inverter, the latest exchange system enables faster, safer and more economical turnaround in railway maintenance sheds throughout Australia. Changing bogies is a demanding business. According to Neil Boehringer, Project Manager at Andrew Engineering, the company that manufactures the bogie exchange system (BES), the new design halves the changeover time. He said that when traditional methods are used, it takes a team of maintenance workers an hour and a half for each changeover. Using the new equipment, a single operator can remove and replace a set of bogies and have the train ready to leave the shed within 45 minutes. This makes it easy to carry out maintenance on the wheels or other components away from the train.

Precise movements The older methods rely on jacking the whole train up or working from below in specially constructed pits, but thanks to the precise movements controlled by the Movidrive B drive inverter, the car need only be lifted by 50 mm. The bogie is then easily removed from the carriage and brought out sideways. This combination of movements requires a complex set of drives, motors and gears, working in all three axial directions (x, y and z), with some of the lifting and positioning movements requiring great precision. When equipped with an absolute encoder feedback mechanism, the inverter can be configured for fine or course movements in any direction, said Mauro Castiello, Sales/Application Engineer at SEW-Eurodrive. “The absolute encoder gives us the ability to lift and position with a tolerance of 0.1 mm, in real time,” he

A single operator carries out the bogie exchange in a safer, faster and more cost-effective manner. said. “In other cases, when we don’t need that level of precision, it’s more like manually operating a crane. You press the button and the motor runs, and then you release the button to stop it.”

Design support During the system design phase, Boehringer and his team at Andrew Engineering enlisted their supplier to assist. “If it’s a complex design that you can’t do yourself, they support you,” he said. The company employed its Workbench software in producing the designs. Castiello said that by

36 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

feeding in parameters like the speeds of the movements, the weights to be lifted and the type of friction to be encountered the designers could easily select the appropriate motors and drives. To cater for the range of movements, the system design included a combination of helical bevel and helical worm gearboxes. “After the equipment selection was made, we reviewed the calculations together with the Andrew Engineering designers. Once approved, a three-dimensional CAD model of the system was provided and then used directly into their own design software,” said Castiello. “Their

skilled designers could use this input to engineer a complete BES, with no additional information from us.” Because the movements are sequenced when the bogies are changed over, the designers requested a single inverter, to control the individual movement of four different motors. This resulted in considerable savings for the overall project. “Rather than asking you to buy a Rolls Royce version, SEW-Eurodrive optimises its designs to suit our needs every time we work with them,” said Lincoln Oxer, Senior Electrical Designer at Andrew Engineering. manmonthly.com.au

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Fieldbus flexibility Oxer said another major advantage of the design was the ability to control the motors and drives via a field bus, with acceleration times, deceleration times and other parameters easily managed. Similarly, any adjustments that become necessary as conditions change during the lifecycle of the machine can be carried out remotely or by the operator at the human-machine interface (HMI). The complete system controls 15 different motors through seven drives. Some of the motors have brakes; some have absolute encoders for extra precision and others don’t. Consequently there is a wide variety of power and current requirements during the bogie changeover and it is essential that all the parameters can be switched simply. “You get complete parametrisation and adjustability at your HMI without having to connect up a laptop to do the tweaks. You can limitI the if 0 you need L 1current 1 1 5 _ 0 0 _ Rto E do M asoft stop. And it also has the grunt to

“

While there are cost, speed and laboursaving advantages, improved safety is the number one benefit… lift heavy weights,” said Oxer. Delivery time was an important factor in the success of the project. According to Oxer, the industry norm is to deliver this kind of equipment in 12 to 16 weeks, whereas SEW-Eurodrive was able to deliver in one week because their local operation holds stock. The ability to source all of the components from a single supplier was also important said Boehringer, who has selected gears, motors and drives from the company for complex projects over many years. It simplified the design process.

clearly important, improved safety is the number one benefit. The two traditional methods of exchanging bogies, that is, working from an underground pit beneath the train car or working beneath the jackedup train, require special precautions. This is not the case with the new system. When a pit is installed in a maintenance shed – an expensive civil construction exercise – special work practices must be put in place to maintain the trains. Working in a pit beneath the train means working in a confined space. Occupational health and safety (OH&S) regulations for Safer, cheaper and faster 1While 2 0the 1 5cost, - 1 speed 0 - 2 and 6 T labour1 0 : 0 7 : 5 confined 6 + 1 1 :spaces 0 0 include requirements for quick and easy exit in saving advantages of the BES are

case of emergency. At the same time though, the maintenance crews are working at height to change the bogies, and there is a requirement for scaffolding to ensure their safety. “These two requirements are fighting against each other, and maintenance might be delayed because the issue is too hard to resolve,” said Oxer. He said that working under a heavy jacked-up train is not pleasant either, regardless of the safety precautions in place. “It always makes me nervous,” he said. In stark contrast, the new Andrew Engineering BES, powered by the Movidrive B drive inverter, overcomes this safety dilemma. In railway maintenance sheds around Australia, it is now possible for a single operator to carry out the bogie exchange in a safer, faster and more cost-effective manner. SEW Eurodrive 03 9933 1000 www.sew-eurodrive.com.au

The all-new Economical ES40 Movidor High Speed Door is here.

Installed from $9800* - Minimalist Design - Segmented Curtain - Relocating Curtain - Fast Operation *Price excluding GST, based on 3.0H x 2.5W installed metro area subject to site variations.

To find out more, contact us by calling 1800 010 221 Email: info@remaxproducts.com.au | Visit: www.remaxproducts.com.au

manmonthly.com.au

Manufacturers’ Monthly NOVEMBER/DECEMBER 2015 37

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Management Lessons in innovation from the USA’s best The American Chamber of Commerce in Australia is holding its inaugural Innovation Mission, exploring some of the reasons behind the USA’s tech business success, next month. Brent Balinski reports.

T’S reasonable to say the word “innovation” has gotten a fair work out this year and – in various discussions, op-eds, hackathons and elsewhere – it’s reasonable to say that this will continue. In the above situations, references to high technology clusters such as Silicon Valley often feature. Though the likelihood of re-creating a Silicon Valley in Australia is unrealistic, there’s no reason why the Californian tech ecosystem and the United States in general shouldn’t be scrutinised in the hope of a few innovation lessons. “The US remains the world’s most innovative market [and] we are the American Chamber of Commerce, so it’s a bridge for us to build between Australia and the US,” said Geoff Culbert, President and CEO of GE Australia and New Zealand, of the AmCham’s inaugural “Innovation Mission” to the US west coast next month. The trip is split between San Diego and Silicon Valley, with the latter a big influence on GE’s operations. Occasionally referring to itself as a “120-year-old start-up company”, the American industrial conglomerate started to pay careful attention to the tech hub about five years ago, said Culbert. It has also invested around $US 1 billion to open its software centre of excellence in San Ramon – employing around 1,000 software engineers and data scientists – a major move as part of its “Industrial Internet” initiative. GE has developed its own internal methodology based on the way that Silicon Valley operates. It’s around “failing fast, failing small” and adjusting with agility. “You’ve got small companies that only have a limited amount of funding, a limited amount of oxygen –

they only get to continue in their life if they meet milestones,” Culbert told Manufacturers’ Monthly of the start-up mindset. “And you also have to constantly recalibrate and co-create with your customer base to make sure what you’re delivering and producing is what the market actually wants. A great saying in Silicon Valley is that ‘the idea that you first came up with is very rarely the idea you end up with.’”

Niels Marquardt, CEO of AmCham Australia.

38 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

Genuine, early-stage businesses will be featured on the mission, as well as those that are at the extreme other end of the scale, with visits to LinkedIn, Google and Zebra Technologies and others – “the entire spectrum of innovation,” suggested Culbert. Considering the success of the United States when it comes to industry and university collaboration is also a part of the mission, with visits to University of California, San Diego, and Stanford University during the two legs of the trip. “I think the synergies between business and academia and also government are indeed, with these different universities, without parallel,” Niels Marquardt, CEO of AmCham Australia, told Manufacturers’ Monthly. “In San Diego we’re going into a business school in Stanford we’re still working out whether we’re going to go to a medicine or an engineering or business or a combination.” Though Australia performs strongly in research, it’s frequently pointed out that its record at commercialising this is poor. A report released in March, Innovate and Prosper, placed Australia’s research output per capita

ninth out of 30 OECD nations. However, the country’s industry/research sector collaboration came in second-last. There are numerous other studies that have indicated a similar situation. The need to lift the country’s productivity performance and slow post-mining boom growth in general will ensure that suggestions on how to lift innovation will continue to be thrown about. Its link to productivity is wellknown; for example, 2007 research from the Productivity Commission put 65 per cent of economic growth per capita from 1964-65 to 2004-5 down to “improvements in the country’s use of capital and labour, made possible by innovation.” Whatever the way forward for Australia, AmCham suggests there is plenty to learn for individual businesses and others from American business innovators. “What is it that allows companies to be consistently more innovative than the competition?” asked Marquardt, adding that there were many areas that could add to the way a firm encourages its employees to contribute. “I think that folks will see that there are even organisational reasons – there’s the reporting hierarchy, there’s the way people are seated, it’s the way they eat lunch, it’s the way they share ideas. “And this is the first time that we’ve done this, but the theory is that everyone is going to come back with some ideas that will make their own operation more innovative.” AmCham Australia’s Inaugural Innovation Mission takes place November 8-13. AmCham Australia 02 8031 9000 www.amcham.com.au manmonthly.com.au

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Improve your productivity with welding automation. At BOC, we understand the challenges your business faces everyday. If we can help you increase productivity while keeping your costs down, then we’re doing our job. We recognise that for welding and plasma cutting, it’s important to use the right combination of BOC gases, quality consumables and state-of-the-art equipment to help you achieve the results you need. Through an exclusive partnership with EWM, we’re able to supply your business with a comprehensive range of welding automation packages. These MIG/MAG, TIG and plasma welding systems are designed to be integrated with robots or custom/hard automation installations. A number of these systems are already in operation in the Australian and New Zealand manufacturing industry.

BOC Limited, Riverside Corporate Park, 10 Julius Avenue, North Ryde, NSW 2113 Australia

ABN: 95 000 029 729 | boc.com.au | 131 262 BOC is a trading name of BOC Limited, a Member of The Linde Group. © BOC Limited 2015. MP15-0318|MM|ML|1115

A Member of The Linde Group

Our welding automation range includes the following: → alpha Q MIG/MAG with coldArc®, forceArc®, pipeSolution®, pulse and superPuls® welding and MIG brazing → Phoenix MIG/MAG with forceArc®, rootArc®, pulse and superPuls® welding and MIG brazing → Tetrix DC and AC/DC TIG with activeArc®, ACspecial, AC waveform selection, kHz pulse welding → Tetrix DC and AC/DC plasma welding → Quality management software eg. Xnet, QDOC 9000 BOC has an agreement in place with our integrator partner Robot Technologies Australia (RTA) who have extensive experience and capabilities in welding and plasma cutting automation. The role of RTA is to provide you with a turnkey package which includes modelling, scoping, costing, engineering, assembly, commissioning, installation and operator training as well as after sales service and support. BOC also has a wealth of technical expertise available to you through our team of Specialists located nationally. To ﬁnd out more, contact Peter Kuebler, Technical Solutions Engineer on peter.kuebler@boc.com

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Welding The benefits of industrial ducting Dust extraction systems are essential in manufacturing where materials are broken down and worked to produce a finished product.

TYPICAL basic dust extraction system requires several key components: 1. Hoods – These are placed close to the work face to capture dust and chips from cutting wheels and are usually made from Steel and flexible polymers of various diameters to convey the waste material away into storage bins. The capture velocity of air passing across the face of each hood must be of sufficient strength to ensure the dust and waste produced is well and truly caught up in the air stream at the entrance of each hood and not allowed to escape to contaminate the air in the workplace, causing distress, potential lung disease to operators of process machinery and of course M Acontamination 1 1 1 5 _ 0 0of0 the _ Dfinished AT product.

Eximo flexible ducting is chemical resistance and offers flame retardation.. 1 2. 2 Extraction 0 1 5 - 1 0Fans - 2 –3These T 1 4are : 4 9 : 2 to 7 airflow + 1 1 : that 0 0 may be inherent in a designed to overcome any resistance dust extraction system.

3. Dust Collectors – These are designed to separate out the air used to capture and convey the waste material. The dust collector must not allow any of the dust and waste to escape into the atmosphere. Waste material captured can be stored in a bin or hopper under the dust collector ready for proper disposal. Two types of dust collector are most commonly used. One is the shaker type for smaller applications and the other is a reverse pulse type for larger production plants. A) The air required at each hood must be of sufficient volume and velocity to capture the waste product produced during manufacture, for example where there are cutting wheels operating at high speeds (revolutions).

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40 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

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B) The conveying velocity (speed) required to convey waste material through the ductwork must he high enough to ensure that the material does not fall out of the airstream onto the floor of the ducting, causing blockages in the system and bringing production to a halt. In continuous shift plants, this is extremely important. C) The fan that is selected must produce the adequate air volume for every hood sized to overcome resistance to airflow inherent in any dust extraction system; this is also a very important factor. 4. The type of dust collector used – This is vital to a successful outcome. It must comprise the following: Fabric filters, which are sometimes called ‘filter socks’ are usually cylindrical in shape. The filter material used must be capable of filtering the air released to the atmosphere down to a point where it complies with all relevant regulations. Most importantly, the cleaning device on the dust collector must ensure that any pressure drop across the filter media does not to rise to the point where the airflow in the system is reduced below the design-specified minimum. The right cleaning system for the collector must be chosen to maintain the correct pressure drop across the filter material while production continues. If pressure is allowed to rise beyond the design

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maximum the whole system will fail in its intent to remove dust and contaminants from the work environment.

Lets all get flexible Using proven German technology, Eximo’s Flex range of ducting has proven its worth in a number of manufacturing environments. This of course is of little surprise since Eximo flexible ducting is chemical resistance and offers flame retardation. It is also ducting that offers high flexibility, excellent axial compressibility and is resistant to aggressive and abrasive fumes and dust. In terms of flexible ducting, there are several key qualities it should possess including: • Guaranteed draft-free air distribution for any duct size • Precise and even air distribution • Impregnated with anti-mould and anti-fungicide compounds • Lightweight • Quick and easy installation • Noise suppressing and absorbing • High-grade filtering • Low transportation and installation costs • Hygienic • Easy-care • Low Cost Installation Eximo 1300 138 038 www.eximo.com.au

Welding fumes – the less, the better for workers WELDING fumes and gases are not nice, literally and figuratively. In fact, from a chemical point of view, most welding fumes comprise of fumes from chemicals such as zinc oxide (ZnO), magnesium oxide (MgO), galvanized steel, Chromium and Cadmium. 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 SpeedLock. WeldFlex is designed for use in a variety of industries including the petroleum, chemical, paint, fertilizer, solvent and food industries. WeldFlex ducting 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. WeldFlex has a number of highly unique attributes including being self-extinguishing, high flexibility, extreme helix-like PVC structure.

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Welding The rewards of equipment upgrades When Austin Engineering wanted to upgrade its gas cylinder fleet, the Perth-based manufacturer turned to BOC. The solution offered came with genuine benefits in terms of safety and reliability.

USTIN Engineering based in Kewdale, WA is one of the busiest workshops in Perth, designing and manufacturing customised dump truck bodies, buckets and ancillary products for some of the biggest mining companies in Australia. With up to 200 workers on the floor on any given day, a top priority is to ensure maximum efficiency by using a continuous improvement approach. With a significant amount of welding carried out every day and anywhere between 80-120 G size cylinders used each week, Austin Engineering was keen to work with BOC to improve safety of its workers and reduce costs by upgrading its gas cylinders to the new BOC F3 VIPR with in-built regulator. Geoff Collins, Workshop Manager at Austin Engineering said: “We’re firm believers in continuous improvement and are always looking for better ways to improve our efficiency and that’s where these cylinders came in.”

Challenges Working in a busy workshop with G size cylinders meant some challenges for the Austin Engineering team – particularly when connecting regulators and transporting them around the workshop. “When staff detached a regulator from a cylinder, there was always a risk that they would drop it on the ground, break it, or crack the valve open too fast and blow the diaphragm. We were getting a lot of damage with the regulators.” “Also when transporting the welding machines around the workshop, the tall standard G size cylinder could at times, restrict the vision of workers. Depending on which way you pushed it, you couldn’t always see over it,” said Collins.

Solution After an initial trial of several 33 litre F3 VIPR cylinders in the workshop, Austin Engineering made a decision to upgrade all its G size cylinders for Argoshield 52 to the new cylinder. Ideal for welding workshops that need to easily move cylinders, the F3 VIPR cylinder was perfect for the Austin Engineering team because it had a slightly higher capacity than the G size cylinders and an in-built regulator, eliminating the need to purchase separate regulators. Filled to a pressure of up to 300 bar, the innovative F3 VIPR cylinder offered both a higher capacity and smaller size making it more portable. It also had improved safety features including a handle for trundling, protective casing for the regulator and a shorter height for easier transportation. 42 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

The F3 VIPR cylinder offers both a higher capacity and smaller size.

Smaller size, safer worksite With up to 60 welders in their workshop, minimising the risk of manual handling injuries was a top priority for Austin Engineering. Since the F3 VIPRs were implemented, safety has improved for workers transporting cylinders throughout the workshop. “We have a diverse group of welders who have different heights and strength, so having this sort of cylinder makes it easier for them to handle. When moving them, they now have a better point of balance with the lower F3 VIPR height – bringing the centre of gravity down which makes a world of difference for them.” Maneuverability of welding machines with the cylinder has also greatly improved with the new F3 VIPR. “Weight wise it’s about the same as the standard G size but it’s not as top heavy, making it easier to maneuver with a welding machine. It doesn’t restrict the worker’s vision at all as they’re a lot shorter.”

In-built regulators – improved durability Austin Engineering no longer needs to purchase its Argoshield 52 regulators separately and since switching over to the F3 VIPR, the workshop has already saved money and improved productivity. “Having an in-built regulator saves us a lot of

costs because it is permanently attached to the cylinder making us less prone to damaging regulator equipment. It also means one less piece that we need to supply – saving us time. The top of the cylinder has a plastic casing which protects the regulator, so if it falls over it reduces the chance of the head breaking off.” “We also like that they’re all the same type of regulator because we previously had different types. We have a lot of workers where English is their second language, so now they’re used to the same BOC regulator which certainly makes it far easier for them,” added Collins.

Reliability of gas flow With their large mining customers expecting high quality welding work, gas flow from the cylinders was one feature that impressed Collins about the F3 VIPR. “A lot of other flowmeters and regulators can be inaccurate which is not ideal as gas flow is crucial to the welding operation. Knowing that we’ve got a BOC product with a BOC regulator in that cylinder, we can be sure of the quality because the regulator is actually protected and there is more consistency of gas coming through.” BOC Australia 131 262 www.boc.com.au manmonthly.com.au

urer lity.

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Clamp for safe and secure welding MAGNET Sales Australia has released a magnetic square that presents a safe and easy way to clamp pieces of steel in preparation to weld them safely and securely. The MagSquare 400 clamps steel pieces at 90° or 45° angles and can be easily cleaned of unwanted swarf with metal fragments simply dropping off. No power is required for the magnetic square to switch on and off, making it very popular in many industry stations. Designed for the metal fabrication and welding industry, MagSquare 400 is already being used in many factories throughout Australia. Key features of the product include strength; fast, precise positioning; flexibility to be mounted anywhere without limitations like clamps; magnetic grip on three sides; the ability to be mounted to flat surfaces and pipes; and pre-tapped holes on all sides for simpler mounting. Magnet Sales Australia 02 4272 8180 www.magnetsalesaust.com.au

YOUR

BUSINESS fo r

up f r on t

The clamp requires no power.

Purging system for welding CHROME steel pipe joints, such as those used in the power industry for high pressure, high strength pipework, need to be pre-heated for welding and also require a post weld heat treatment. Weld joints of this nature need to be purged of oxygen and welded in an inert atmosphere, to prevent oxidation that leads to loss of corrosion resistance and undesirable change to the metallurgy. With the high temperatures and length of time at such temperatures, most weld purging systems are unsuitable. However, Huntingdon Fusion Techniques HFT has now developed the HotPurge Inflatable Tube and Pipe Purging System for Heat-Treated Chrome Steel Pipe Joints where the temperatures might be as high as 760°C. Using the System allows the purge to be safely continued for up to 24 hours whilst pre-heating, welding and post weld heat-treating with the purge system remaining in place. Each HotPurge is manufactured as standard with PurgeGate to prevent over inflation of the dams. No matter how high the user raises the pressure in order to deliver more gas flow, PurgeGate prevents too much pressure being delivered to the inflatable dams, but allows the increased flow, should it be required to achieve a lower oxygen level, or for faster cooling of the pipework. The large central collar dramatically reduces the space to be purged and makes it easier to reach the

manmonthly.com.au

Can be used repeatedly for weld purges. lower oxygen levels faster than with conventional purging systems. Each HotPurge System incorporates an innovative central band for easy positioning inside the pipe. This band, known as RootGlo will illuminate inside the dark pipe, for up to 20 hours, with only 10 minutes previous exposure to daylight. Each system is available in sizes 150mm - 2440mm and both inflatable dams have pull handles securely sewn with high temperature resistant Kevlar thread that will withstand a pulling force of about 450kg. These purging systems can be used repeatedly for weld purges and will keep the oxygen levels below 100 parts per million (ppm) throughout the welding cycle, ensuring oxide and coke free welds, without the metallurgical imperfections caused by exposure to too much oxygen. Smenco 1300 728 422 www.smenco.com.au

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1300 237 652 www.beaconsolar.com.au

COMMERCIAL SOLAR SPECIALISTS Manufacturers’ Monthly NOVEMBER/DECEMBER 2015 43

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What’sNew

Brought to you by

Sensors for roller conveyor systems WENGLOR reflex sensors with background suppression for roller conveyor systems are high performance sensors that are quick and easy to mount. The reflex sensors can be used to control and detect objects on roller conveyor systems. They are suitable for warehouse and logistics centres and can reliably detect small packages with widths as small as 150mm, with conveyor widths of up to 900mm. Dark objects can also be reliably detected due to the precision of background suppression. The sensors offer a fast-clip mounting system that reduces installation and maintenance time and cost by up to 60 per cent compared to conventional screw type mounting systems. With just a single click to mount, they offer a secure, stable mounting system with a long service life. The quick wiring feature allows the wiring effort to be reduced by 90 per cent, with the M12 plug turning just 180° to securely connect to the sensor. The cables are also fully compatible with all standard cables. Switching distances can be detected and adjusted extremely quick and easily due to the new 270° scaled potentiometer, even when the sensor is not operating. Thanks to the eco mode, the current consumption is reduced by 75 per cent for the solenoid valve and even more in the switched state, to less than 16mA. They can be used in temperatures from -40°C to 60°C. Treotham Automation 02 9907 1788 www.treotham.com.au

The reflex sensors can be used to control and detect objects on roller conveyor systems.

Air knives EXAIR has expanded its range of stainless steel long super air knives to include a maximum length of 2743mm. The company is now manufacturing all air knives which are 1524mm or longer (which used to be two pieces) in one piece construction. This is intended to ease installation Offered in Type 303 and Type 316 stainless steel, as well and saves space. as aluminium and PVDF. Their corrosion resistant design ensures seamless airflow and withstands temperatures up to 427°C. The air knives produce a laminar sheet of airflow to blow off, dry or cool large surfaces up to 2743mm wide. Their energy efficient design minimises compressed air use by entraining 40 parts room air to one part compressed air. They are ideal for blowing corrosive chemicals off parts, drying food products and cooling hot materials such as molten glass, castings and moulded parts. The air knives provide a uniform, high volume, high velocity curtain of air that can be adjusted from a gentle blowing force to a hard-hitting blast of air. The compact profile measures 45mm x 37mm with compressed air inlets located on each end and the bottom to permit easy mounting in tight spaces. They are quiet, maintenance free, have no moving parts to wear out, are CE compliant and meet OSHA safety standard 1910.242(b). Compressed Air Australia 1300 787 688 www.caasafety.com.au

44 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

Laser beam melting system THE SLM 500 LH quad laser technology offers four fiber lasers (4 x 400W) or alternatively two fiber lasers (1 x 400W + 1 x 1000W). Used independently or in parallel and simultaneously, they offer optional processing and high speed. This fast and precise bi-directional process produces highly accurate parts, layer by layer, using a large number of different metals in powder form. Metal powder flow is continuous and automated from an external unit. This increases operator safety and eliminates time consuming fills and powder handling. A range of powders, from aluminium and titanium alloys, to tool and stainless steels, cobalt-chrome alloys and nickelbased alloys, is available to meet specific production requirements. A critical advantage is that whatever powder is selected the mechanical properties of the original material are preserved. In a selective laser melting

The system offers optional processing. process, laser additive manufacturing occurs by depositing thin layers of metal powder that are exposed to laser radiation and melted. An advantage lies in the reuse of 95 per cent of excess powder not used in the build. Once completed, the finished build cylinder is transported out of the system. The cooling process takes place in the unpacking unit, leaving the build area immediately available for processing. Raymax Applications 02 9979 7646 www.raymax.com.au manmonthly.com.au

MA1115_000_SIC

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THE UPSIDE OF DOWNTIME.

Downtime is expensive. Even a few minutes can be costly. Packaging engineers around the world now turn downtime into up time with sensor technology from SICK. Machine performance is optimized. False trips are eliminated. Multiple product changeovers? No problem. During processing, ďŹ lling, sealing, labeling, and shrink wrapping - prevent downtime before it happens. SICK keeps your machine performance at its peak, your lines moving and your customers happy. We think thatâ&#x20AC;&#x2122;s intelligent. For more information please visit www.sick.com.au or call 1800 334 802.

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YOU KNOW THE BEAST NOW MEET THE BEAUTY The new Strenx portfolio of high strength steel for structural applications is the world’s widest selection of steel available in the 600-1300 MPa and 0.7-160 mm range. Strenx allows for stronger, lighter, smarter and more attractively designed products. That’s the beauty of Strenx: You can do more with less steel, and everybody wins.

SSAB Swedish Steel Pty Ltd Office & Stocks Perth Brisbane Melbourne & Adelaide

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SSAB is a Nordic and US-based steel company. SSAB offers value added products and services developed in close cooperation with its customers to create a stronger, lighter and more sustainable world. SSAB has employees in over 50 countries. SSAB has production facilities in Sweden, Finland and the US. SSAB is listed on the NASDAQ OMX Nordic Exchange in Stockholm and has a secondary listing on the NASDAQ OMX in Helsinki.

46 NOVEMBER/DECEMBER 2015 Manufacturers’ Monthly

What’sNEW Magnetic cable holders WORKPLACE health and safety statistics show that a large proportion of workplace injuries are caused by messy and disorganised machine cables and hoses. This is fast becoming a major occupational health and safety concern. For several years now, Magnet Sales Australia’s Cable Mates have been a quick and inexpensive way to eliminate trip hazards and prevent electrical hazards, within the workplace. This product is simple to use and extremely effective. With a holding strength of up to 25kg, this resilient magnet can support numerous cables and hoses together, using a uniquely designed electrical safe, plastic adjustable strap. This storage solution can be fitted as either a permanent fixture or can be easily removed and placed elsewhere. The magnetic cable holder is an ideal option for storing cables, leads, hoses and wires in a practical and safe position, and to assist in providing safer workplace areas. Magnet Sales Australia 02 4272 8180 www.magnetsalesaust.com.au

Has a holding strength of up to 25kg.

Temperature transmitters ALVI Technologies has released the ProLine P 44000 series of transmitters with extremely high isolation for use with Pt100 resistance thermometers in high-voltage motors (up to 11 kV). Temperature sensors used in high-voltage motors in the process industry are insulated in the stator slots together with the windings of each motor phase. They are used to detect increased temperature due to insufficient cooling or overload. However, the isolation is Prevents transmission of high voltage potentials of the motor subject to influences in the phase, caused by insulation defects at the sensor. course of many years of motor converted into a 4…20-mA output signal. operation, which can lead to wear and, at Thanks to their especially robust galvanic worst, to failure. isolation, the basic insulation permanently Because conventional temperature withstands working voltages of up to 6.6 kV transmitters offer no protection against high AC/DC and, depending on the supply type, voltages, they redirect the applied motor can be employed for high-voltage motors voltage outward to the control system. For with up to 11 kV. this reason, EN 61140 requires a second, Thus, this new temperature transmitter equivalent and adequate isolation barrier for reliably prevents transmission of high voltage protection under single-fault conditions in potentials of the motor phase, caused by addition to protection against electric shock. insulation defects at the sensor. ProLine P 44000 is the result of the specially developed solution for temperature ALVI Technologies measurement under high voltage. The 02 9838 7220 input signal is galvanically isolated and www.alvi.com.au manmonthly.com.au

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Conversion kits

Forklift fleet management

MICHELL Instruments has released four kits which will enable users to upgrade their existing general purpose XTP601 oxygen and XTC601 binary gas transmitters into fully-functioning analysers with the minimum of fuss. Although the transmitters are both cost-effective and reliable, the company discovered that some customers realised that they actually needed the added functionality of an analyser. The kits were developed to assist them to upgrade their units in the field and obtain the desired functionality. The kits convert transmitters into analysers. Whilst sharing the same specificaThe upgrade kits are available for the tions for range, accuracy and reliability as the general purpose (non-hazardous area) transmitters, the thermo-paramagnetic XTP versions of the transmitters. The kits contain and binary gas XTC analysers incorporate a everything that is needed for a properly human machine interface, which allows users trained and competent technician to convert to view, interrogate, change settings and calithe transmitter easily in less than half an hour brate the unit in-situ. This is all available via and without the need for specialist tools. the display and “through the glass” capacitance buttons on the front of the unit making AMS Instrumentation & Calibration operation and interrogation of the units easy 03 9017 8225 to carry out. www.ams-ic.com.au

MLA Holdings has introduced MLA FleetControl, its new fleet management system. The system uses intuitive technology to link your business with your material handling equipment, optimising the performance of operators and forklift fleets. It focuses on improving safety and compliance while increasing productivity and reducing costs associated with managing any size forklift fleet. It allows management to capture real time data straight to a PC, tablet or smart phone, capturing vital information to optimise performance. Safe forklift operation is encouraged by the prevention of untrained or unauthorised staff operating equipment. Operator compliance is made easy with automated operator pre-start checklists which identify any maintenance issues before equipment is used. The system improves the way a forklift fleet is utilised. Decision making becomes M A 1 better 1 1 5 informed _ 0 0 0as _ it’s T AL Dixbro_122x100_final.pdf 1 14/10/2015 supported by actual real time data on

The system allows businesses to establish regular service intervals based on actual usage. productivity by shift and provides measurable levels of operator behaviour. Because their behaviour is monitored and measured, operators naturally become more accountable, resulting in increased productivity and reduced costs. Improved accountability reduces product and equipment damage and increases efficiency. MLA Holdings 1 2 0 1 5 - 1 0 - 2 0 T 0 9131 : 652 0 5 : 1 9 + 1 1 : 0 0 4:49:16 p.m. www.mlaholdings.com.au

On-cap digital printing solution THE Colora Cap on-cap digital printing solution provides ultra-high resolution for the decorating of PE plastic caps for bottles and wide mouth containers. The caps surface are pre-treated with a plasma and corona treatment C to ensure they have ink adhesion M and then transfer to the print heads with 1000 nozzles in two rows printY ing with a resolution of 360dpi x CM 360dpi at a speed of up to 600 cpm MY The process enables manufacturers to use high-definition (for a 29mm diameter cap) using digital images. CMYK colour technology. CY Drying is inline using a UV curing CMY station and an integrated CVS Vision inspection system ensures in-line quality checking and rejection of defective parts. Cap size range is from 20mm - 70mm (diameter) with size and K image changeover achieved in minutes. The printing solution provides companies with a competitive market advantage as they can brand their caps/lids for targeted promotional campaigns with short runs. The process enables manufacturers to use high-definition digital images, importing them directly into the printing system in just a few minutes, and then starting a new production batch without any format changeover costs such as expensive colour printing plates. It also has the ability to print consecutive images to mix the designs throughout batches. HBM Packaging Technologies 03 9646 3153 www.hbm.com.au manmonthly.com.au

Industrial wire brushes Trusted by generations of engineers all over Australia and New Zealand

www.dixbro.co.nz Manufacturers’ Monthly NOVEMBER/DECEMBER 2015 47

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What’sNEW

Brought to you by

RFID – Rugged full-metal tags LOW-frequency all-metal transponders from Contrinex are resistant to metal chips, dirt, alcaline cleaning agents and hot water. They withstand wash-down processes undamaged and are recommended for use in construction machines, cement works, the food industry and aluminium processing. In situations too challenging for standard RFID components, stainless steel RFID transponders come into their own: Low-frequency all-metal read/write modules and tags (125 kHz, operating frequency: 31.25 kHz) have an IP68 protection rating and can therefore be used even under water. Models additionally rated to IP69K, a normal protection type for food industry use, will withstand high-pressure cleaning with hot water and highly chemically active detergents or disinfectants, such as hydrogen peroxide and products with alkaline or chlorine content. For these requirements, transponders are hermetically sealed in a one-piece stainless-steel housing with laser-welded backplate. However, aggressive cleaning agents M are A 1not 1 1alone 4 _in0having 0 0 _no F influence AN on low-frequency all-metal transponders.

High-visibility gloves

ANSELL has released its Microflex 93-856 high visibility single-use gloves for workers in high risk, heavy duty environments where there is a danger of contamination from hazardous substances, pathogens and other harmful materials. With a second skin feel and exceptional tactile sensitivity, these single-gloves have been developed for the needs of people involved in crime scene analysis, emergency services, and anyone who may come in contact with chemicals or corrosive materials. Ansell says its heavy duty gloves resist a variety of industrial chemicals for Available for an operating temperature range longer periods than other nitrile disposable of minus 40°C to 180°C. gloves, while an extended cuff offers an increased level of protection in an exam They also work faultlessly in stainless grade glove in the highly sensitive wrist and steel environments – even when embedforearm areas. Powder-free and not made ded with only the transponder face visible. with natural rubber latex, these gloves In addition mechanical wear, for example help protect from Type I skin allergies, skin from aluminium chips or dirt particles, is irritation and dryness caused by latex. practically non-existent. The gloves are said to deliver chemical iOpen splash resistance to a variety of industrial periods than most 1 2 0 1 4 - 1 0 - 0 9 T 02 0 94272 : 41899 7 : 5 chemicals 0 + 1 1 :for0longer 0 www.iopen.com.au other disposable nitrile gloves.

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The textured fingers enable the wearer to maintain a strong grip. Ansell 1800 512 746 ppe.ansell.com.au

manmonthly.com.au

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Dream it. Print it.

Bring your ideas to life with 3D printing We have a range of printers that are changing the face of the manufacturing industry. Our 3D printing technology opens the door to rapid prototyping and producing new items that seem impossible using traditional methods of manufacturing, due to their complexity. It can reduce or eliminate the need for complicated tools and streamline the time it takes to fit together various parts and reduce your overall production costs. To find out more and discover the possibilities, visit konicaminolta.com.au/3D

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The last WORD Australia, say hello to YuMi ABB Robotics has unveiled the world’s first truly collaborative dual-arm robot that promises to radically change assembly lines. Phil Crowther reports.

N recent years, progress in robotics has made it much easier to deploy robots on production lines: Installation has become quicker; programming and reprogramming have become simpler; and robots have become more versatile, enabling them to turn their hand to many more tasks than before. What was missing, though, was a collaborative robot – one that could work beside a human, unconstrained by safety barriers, and be easily taught its task. That has now changed. After years of research and development, ABB has unveiled YuMi, the first industrial robot that can truly be called collaborative. It complies with the safety standards and can to work hand-inhand with humans on assembly lines. This groundbreaking robot ushers in a new era in manufacturing. Few production arenas are changing as quickly as that of smallparts assembly. The electronics industry, in particular, has seen demand in this arena skyrocket past the supply of skilled labor. As conventional assembly methods diminish in value, manufacturers are finding it strategically and economically imperative to invest in new solutions. ABB’s market introduction of YuMi – a play on words that means “you” and “me” – is a groundbreaking solution for human-robot collaboration in the small-parts assembly environment.

First, safety YuMi literally removes the barriers to collaboration by making protective fencing and cages a thing of the past. Its design is based on a revolutionary integration of motion control software, speed-limited hardware, reduced weight, a compact frame and 14-axis agility. The lightweight, padded, magnesium arms can stop the robot’s motion in milliseconds if necessary – in the event of an unexpected collision, for instance.

so easy anyone can use it. For tasks too complicated for this leadthrough approach, ABB’s high-level RAPID programming language can be used to train the robot in a more traditional manner.

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YuMi represents a breakthrough in the field of collaborative robots. Like the human arm, YuMi has no pinch points, so there can be no crushing between two opposing surfaces as the arm flexes. The padded arms enclose the cabling and air connections, which eliminates snagging, reduces maintenance requirements and makes it easy to keep the robot clean and dust-free. The effect of these features is the safety of humans on production lines and in fabrication cells.

Productivity ABB designed YuMi to become productive very quickly as an all-in-one solution, with integrated arms, hands, torso, control technology and a partsfeeding system. In designing YuMi, ABB’s global presence brought the benefit of an overview of manufacturing trends in 53 countries, many – such as those in north Asia – with high-growth forecasts for electronics. Foremost among these trends is the rapid merging of consumer, computer and communication devices (3C convergence). This has led consumers to expect

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constant innovation at affordable prices, further straining production processes. For manufacturers, the consumer market has changed the rules of production in ways that can be addressed effectively only by automation. Today’s expectations of small-parts assembly involve higher product volumes, shorter product life cycles, shorter lead times and a growing trend to customize goods – particularly electronics – close to the final markets. This new world of small parts assembly requires robots to be very flexible and easily trainable in new tasks. With YuMi, the operator simply has to activate a “record” program, manually guide YuMi through the desired movements and, while doing so, log waypoints and gripper actions on a paired tablet running the YuMi app. The app then turns those movements into the underlying code for the controller. Best of all, no special operator training is required. Known as leadthrough programming, this is the future of robot programming, and is

Small-parts assembly is about more than dexterity – supplying the parts for a given task effectively is also key to an efficient operation. To address this, ABB developed the sophisticated parts-feeding FlexFeeder system for parts delivery. The FlexFeeder stores a large number of parts, ranging from 3mm to 30mm in size, in a bin. Picking parts directly from the bin is a very complicated three-dimensional problem, so the FlexFeeder turns this into a much easier two-dimensional picking operation by placing parts from the bin onto a flat surface, where YuMi’s integrated gripper cameras can easily locate the parts and pick them up.

Creating an automated future With the introduction of YuMi, ABB is pushing the boundaries of robotic automation. YuMi is the result of years of research and development and heralds a new era of robotic coworkers that are able to safely work sideby-side with humans. While YuMi is specifically designed for small-parts assembly and has significant benefits in its own right, it is the first solution from ABB that is designed with a new era of human-robot collaboration in mind. The benefits of this type of collaboration are clearly not limited to a single industry – in fact, almost any industry stands to reap the benefits of collaborative robotic solutions. [Phil Crowther works for ABB Robotics, Shanghai. This is an edited version of an article which first appeared in ABB Review, 3/15] ABB Australia 1800 222 435 www.abbaustralia.com.au manmonthly.com.au

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