Manufacturers' Monthly November 2012

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ANALYSIS >> TECHNOLOGY >> SOLUTIONS

Est. 1961

November 2012

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INSIDE Automation & Robotics >> Motors & Drives >> IT@MM Protecting Your IP >> Welding >> Import Tariffs >> Food & Beverage Manufacturing >> Keeping Australian Manufacturing Local

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Publisher Martin Sinclair martin.sinclair@reedbusiness.com.au Managing Editor Cole Latimer Ph: (02) 9422 2352 Fax (02) 9422 2722 cole.latimer@reedbusiness.com.au Journalist Brent Balinski Ph: (02) 9422 2480 Fax (02) 9422 2722 brent.balinski@reedbusiness.com.au Journalist Hetaal Badiyani Ph: (02) 9422 2722 Fax (02) 9422 2722 hetaal.badiyani@reedbusiness.com.au Editor-at-Large Alan Johnson Ph: (02) 9422 2325 alan.johnson@reedbusiness.com.au Graphic Designer Ronnie Lawrence ronald.lawrence@reedbusiness.com.au Creative Director Julie Coughlan Production Co-ordinator Mary Copland Ph: (02) 9422 2738 mary.copland@reedbusiness.com.au VIC/Overseas Sales Michael Northcott PO Box 3069 Eltham VIC 3095 Ph: 0448 077 247 michael.northcott@reedbusiness.com.au NSW Sales Anthony Head Tower 2, 475 Victoria Avenue, Chatswood, NSW 2067.

Ph: (02) 9422 2368 Fax: (02) 9422 2722 Mobile: 0414 644 664 anthony.head@reedbusiness.com.au QLD Sales Sharon Amos PO Box 3136, Bracken Ridge QLD 4017 Ph: (07) 3261 8857 Fax: (07) 3261 8347 Mobile: 0417 072 625 sharon.amos@reedbusiness.com.au NSW, SA/NT & WA Sales Reed Business Information Ph: (02) 9422 2368 anthony.head@reedbusiness.com.au Head Office Tower 2, 475 Victoria Avenue, Chatswood NSW 2067 Locked Bag 2999 Chatswood DC Chatswood 2067 Ph: (02) 9422 2999 Fax: (02) 9422 2966 Published 11 times a year Subscriptions $140.00 per annum. (inc GST) Overseas prices applyPh: 1300 360 126 Printed by Geon Impact Printing 69 – 79 Fallon Street, Brunswick VIC 3056 Ph: (03) 9387 7477

Inside

For daily news visit manmonthly.com.au

NOVEMBER 2012

4 Editorial Q Innovation and Investment

52

36

6 Comment Q Will the gas balloon burst?

8 Endeavour Awards Q Nominate today

10 Analysis News 14 IT@MM Q MES back in focus Q Open platform browsers

18 Offshore manufacturing Q Who is making your goods?

20 What’s New Q The latest products for Australian

manufacturers

22 Innovation Utilising your technology

24 Motors & Drives 32 Metalworking Q Laser cutting Q Welding

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ANALYSIS >> TECHNOLOGY >> SOLUTIONS

Est. 1961

November 2012

Despite many obstacles, manufacturing can still grow.

36 Protecting your IP

44 Materials Handling

Q Protecting IP in China Q Maintaining innovation

Q Conveyors Q Palletisation

40 Australian Manufacturing

50 Food & Beverage

Q Icons of Australia

Q The future of food manufacturing

42 Automation & Robotics

52 Manufacturing Future

Q Real time monitoring Q Robotic welding

Q Turning the downturn around

Q Electro positioners

54 Products & Services

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Automation & Robotics >> Motors & Drives >> IT@MM Protecting Your IP >> Welding >> Import Tariffs >> Food & Beverage Manufacturing >> Keeping Australian Manufacturing Local

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Manufacturers’ Monthly NOVEMBER 2012 3

Editorial

COLE LATIMER – Managing Editor

editor@manmonthly.com.au

Innovation and investment What the manufacturing industry needs is something that the government isn’t supplying.

I

nnovation and development have never been an issue for the manufacturing industry.

It has always been a forward thinking industry, and has had a focus on sustainability and even lowering its carbon footprint well before it became the done thing.

Even now, during one of the worst crisis the industry has seen, innovation, R&D, and advancing the nation is still occurring.

However one thing is not occurring - real support.

The industry has been essentially left to do this alone by the government. A Taskforce which listed ways in which it can be more sustainable and greener is all well and good, but if there is no access to the capital to actually achieve these new developments then what is the point?

Here at Manufacturers’ Monthly this is a complaint we often hear: “I have a great product/design/innovation, but can’t get it off the ground as I simply don’t have the venture capital to get the project moving”.

In its Manufacturing Taskforce report, the Government looked at all the wrong issues.

For an industry that is so self regulated compared to others within Australia, telling it to focus on

The industry needs support, and capital, for its innovation sustainability and being more energy efficient - when it is already doing so - is missing the point, and in fact a trifle insulting.

The industry needs investment; it needs capital; it needs people who are willing to inject money into these new developments and innovations.

What it doesn’t need is more people telling it how to operate with less. While government grants are helping to soften the blow of a lack of venture capital, it can’t make up for the support of a heavy investor.

At a recent manufacturing conference, Manufacturers’ Monthly saw those in the industry talk about the many green initiatives currently going on, about how the industry is becoming more sustainable, and also, unfortunately, how it is currently running on a shoestring.

Heavy investment, not a governmental delusion that saving a few dollars here and there through cutting energy costs and working more sustainably, is what will save the industry.

And for this, much like the mining industry has, it will have to look overseas for that capital.

China, Japan, Korea - these are nations that, while are to a degree our rivals in manufacturing, can also help us lift the industry out of its current doldrums. Particularly for the food and beverage, and pharmaceutical manufacturers.

Chinese demand for our Australian made food products has been growing exponentially, and the market is ripe for approach for greater investment into our developments.

Harking back to our previous piece, the Chinese want Australian goods because they can be sure that it is of the highest quality.

And they are willing to pay for this quality.

The industry is already becoming greener, cutting its carbon footprint, and becoming more sustainable.

But what it still needs is the capital to continue to innovate, to develop.

And the sooner the government realises this, instead of focusing on solving ‘the problems’ that the industry has already addressed for some time, the better.

Because the industry needs investment - not empty rhetoric.

How do you

select the right sensor

for applications with multiple types of metals? ©2012 TURCK

4 NOVEMBER 2012 Manufacturers’ Monthly

askTURCK.com.au

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EFIC DID MORE THAN FINANCE MY EXPORTS

THEY GOT BEHIND THEM. Bob Wright, Chief Executive Officer, Environmental Systems & Services

When we won a contract to install advanced satellite tracking ground stations with the Polar Research Institute of China, it should have been a dream come true. The complication was that as a new client, they wanted reassurance that we could fulfil the contract.

With our reputation gaining momentum in the region this was a contract integral to our growth.

We needed a solution that enabled us to support our ongoing business while pursuing overseas opportunities.

EFIC provided more than just a financial solution, they took the time to get to know our business and considered

our performance risk as well as our experience in delivering on past projects.

EFIC supported us with an advance payment bond as well as a performance and warranty bond, enabling us to reassure our buyer and successfully fulfil the contract.

EFIC were focused on helping us realise our export ambitions. This deal transformed our business, and we’ve gone on to win multiple contracts in the region.

Overcoming financial barriers for exporters Visit efic.gov.au/mm

Comment

INNES WILLOX – CEO Australian Industry Group

editor@manmonthly.com.au

Will the gas balloon burst?

What will the unintended effects of the upcoming gas boom have on manufacturing?

Innes Willox writes exclusively for Manufacturers’ Monthly.

A

ustralia’s east coast is on the verge of a gas export boom.

Areas such as Queensland’s Gladstone and Curtis Island are seeing a massive infrastructure, port, and construction ramp up ahead of the boom.

While this boom will have many benefits, Ai Group believes there will also be unintended consequences with local gas users in both industry and households.

These groups are even facing a potential tripling of gas prices in the coming years.

There is a need for public recognition and discussion of the risks posed by the export boom and debate over what steps can be taken to best manage them.

Together with our industry colleagues, the Plastics and Chemicals Industries Association (PACIA), we have been concerned for some time that the impacts of the gas boom on our domestic market are not widely appreciated.

Where there has been debate at all, it has centred on the shortcomings of possible responses such as gas reservation, rather than on the nature of the problem itself.

For this reason, and to initiate broader discussion of these issues, our organisations commissioned the National Institute of Economic and Industry Research (NIEIR) to prepare a report.

Its key findings should be a concern to all manufacturers: • The current gas supply may be insufficient to avoid constraining domestic use; • Each petajoule of gas shifted away from industrial use towards exports overseas means giving up approximately $255 million in lost industrial output for a $12 million gain in export output.

That is, for every dollar gained $21 is lost - a worrying figure; • Ensuring a secure local gas supply is fundamentally important to a number of industries including non-ferrous metals and basic chemicals, plastics, pharmaceuticals and paints manufacturers;

• Gas exports are predicted to rise from two million tonnes in 2015 to up to twenty four million tonnes in 2023; • Long-term gas supply contracts have evaporated for local industry as a consequence of export commitments; • East coast gas prices will rise, potentially to as much as triple the current three to four dollars per gigajoule; this increase would be several times larger than the costs related to carbon pricing; and • Current policy settings favour exports over domestic gas sales.

This is a major issue for Australia’s national interest and the securing of its energy future.

It is also a major issue related to job security, and a major issue related to the development of new advanced manufacturing and valueadd industries within Australia.

We need to consider our current policy settings and pause to examine their broader consequences before we are put in a situation where we unable to progress effectively.

We must make sure we are not wasting our natural resources without providing some benefit to the wider Australian industry.

There are no easy solutions; indeed, there are obvious practical economic difficulties in cutting our export levels to focus on protecting our future and current domestic supply levels of gas.

A national gas reserve, for example – such as the 15 per cent reserve already in place in Western Australia – is a hard option, but all ideas should be on the table.

Australia needs a competitive gas market now and into the future and affordable energy will play an increasingly important role for the success of our many manufacturing industries, including by creating long-term, sustainable employment as well as access to cleaner, more environmentally friendly energy and power sources for the manufacturing industry.

We need to get the parameters right- now.

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AnalysisNEWS Don’t leave it too late to enter

By Alan Johnson

W

HILE the nomination deadline for the 2013 Endeavour Awards program, sponsored by BlueScope Steel, is not till early February next year, those closely involved with the awards recommend manufacturers not to leave the nomination process to the last minute.

In fact, Madeline Prince, Endeavour Awards co-ordinator, says companies planning to enter the prestigious awards program should be starting before Christmas, if possible.“The process is not onerous but it is important to start as early as possible, companies should not leave it to the last minute and rush the process. Manufacturers should take the time to read the nomination form and take note of pointers to what the judges are looking for, and be clear on purpose and objectives. It is

important to show a commitment to continuous improvement, research and development and people skill improvement as well as demonstrating knowledge of good manufacturing practices,” Prince said.

She explained that there are 13 categories for 2013: The Technology Application of the Year Award is for

successful applications of technology in manufacturing processes. The Exporter of the Year Award, sponsored by EFIC, is for manufacturers who have successfully entered or are developing an export market with a locally-made product. The Environmental Solution of the Year Award, sponsored by Atlas Copco, is

for the successful implementation of solutions designed to reduce the environmental impact of manufacturing operations. The Australian Steel Innovation Award, sponsored

by BlueScope Steel, is for innovative new products or projects using Australian-made steel.

The Global Integration Award, sponsored by ICN (Industry Capability Network), is for companies who are successfully engaged in global supply chains. The Safety Scheme of the Year, sponsored by Sick, is for the successful implementation of a scheme, or schemes, to improve safety in manufacturing plants. The Australian Industrial Product of the Year Award, sponsored by BOC, is for new, innovative Australian-made products designed for industrial applications.

For more information on the categories and an application form visit www.manmonthly.com.au/Awards or call 02 9422 2759.

Global focus critical

Safety paramount

Derek Lark, CEO of ICN (Industry Capability Network) says he is pleased to once again sponsor the Global Integration Award category of the Endeavour Awards.

“The category acknowledges companies that successfully engage in global supply chains, specifically looking at the investment risk taken and the organisation’s longterm success. Lark acknowleges it is a tough economic climate for the Australian manufacturing industry, due to the pressure from a number of global macro-economic issues.

“Plus the industry is likely to face additional pressure in the future from rising energy costs, and the growth of global supply chains.

“That being said, there is plenty of positive activity being done to support local industry, and this includes the work being undertaken

by ICN. A promising project for ICN has been the implementation of the ICN-Austrade-Enterprise Connect alliance. Funding from the Australian Government has allowed ICN Limited to have a dedicated

By Alan Johnson

8 NOVEMBER 2012 Manufacturers’ Monthly

A great success for ICN has been our sector approach to supporting local industry. team member embedded within Austrade. A great success for ICN has been our sector approach to supporting local industry. Our National Sector Managers continue to travel extensively throughout Australia to promote competitive local suppliers.”

At the heart of ICN’s service is ICN Gateway, an online system that connects buyers and suppliers looking to build partnerships in Australian and New Zealand industries. This online system currently contains $247 billion worth of contracts and more than 60,000 suppliers. There are currently over 130 projects listed. To register your interest for any ICN projects visit www.gateway.icn.org.au.

DAVID Duncan, MD of Sick Australia/NZ, says the company is very proud to continue its sponsorship of the Endeavour Awards.

“We have sponsored the Safety Scheme of the Year category since the inception of Endeavour Awards a decade ago now.

“As a leading supplier of safety innovation and products for guarding machinery and personnel, it is important to us that safety is not only driven by legislation, but is driven by productivity gains also.

“Safety is paramount. I think for industry, manufacturing in particular, investment in safety should not be seen as a cost but as a productivity improvement,” Duncan told Manufacturers’ Monthly.

While he admits the manufacturing industry is doing it tough, Duncan says he is witnessing an increase in spending in automation, to stay competitive, with the utilisation of smart manufacturing technologies, which includes safety.

We are seeing manufacturers increase their spend on automation, to stay competitive.

“Automation is fine, but you need safe automation.

“If a machine malfunctions and either destroys itself and or people, it can affect a company’s productivity, capital cost, downtime and reputation.”

Duncan says early next year will see Sick releasing a wide range of products with “extra smarts”.

“The products are designed to reduce the complexity of safety systems by the use of smart technology, utilising plug and play. he told Manufacturers’ Monthly.

“Vision systems used to be very expensive and complex to engineer, now they can still do complex tasks, but with simplified configuration methodologies. manmonthly.com.au

AnalysisNEWS EVENTS

Tariff wars Are tariffs anti-dumping prevention, or protectionism gone too far?

NOVEMBER 29 Oct-2 Nov: Certified Profibus Traing will be held in Adelaide and run by one of Profibus International’s most recognised trainers, Andy Verwer. This one day hands-on Certified Profibus Installer Course is an internationallyaccredited one-day course covering the layout, installation and testing of Profibus DP and PA networks. He will be supported by experienced trainers from the Profibus International Competence Centre (PICC) on a coast-to-coast training tour. For more information call 02 95555 7899, email info@profibusaustralia.com.au, or go to www.profibusaustralia.com.au.

30 Oct-1 Nov: Goldfields Mining Exhibition (GME) features the latest equipment and technology for miners and manufacturers of mining equipment. Held in Kalgoorlie, at the Kalgoorlie-Boulder Raceourse in Western Australia, this event brings together decisions makers and those in the front liner as well as manufacturers.

For more information contact Reed Exhibitions’ Paul Baker on 02 9422 8822, or visit www.goldfieldsminingexpo.com.au.

MAY 2013 7-10 May: The largest biennial packaging and processing machinery and materials exhibition in Australia, AUSPACK PLUS, will be heading to the Sydney Showgrounds, Sydney Olympic Park next year. AUSPACK PLUS is owned and presented by the Australian Packaging and Processing Machinery Association (APPMA), Australia’s only national packaging and processing machinery organisation.For information about AUSPACK PLUS 2013, please log on to the newly-designed website www.auspackplus.com.au 7-10 May: The event of events for the manufacutring industry, National Manufacturing Week, will be held in the Melbourne Convention Centre.

The largest manufacturing exhibition in Australia, it features the newest technology, products, and services to help you perform you job better. As the offical publication of the 2012 NMW. For more information on the exhibition call 02 9422 2568, or visit www. nationalmanufacturingweek.com.au.

10 NOVEMBER 2012 Manufacturers’ Monthly

E

arlier this month the Australian Customs and Border Protection Service proposed that a 15.45 per cent tariff on imported steel would help stem the flow of cheap imports being dumped on the Australian market.

The protectionist measure aims to limit the amount of exported goods into Australia which are below normal value. The steel industry has the most to gain from the proposed tariff and BlueScope steel is the main advocate for the plan.

Customs made the recommendation after finding that dumping had caused material injury to BlueScope with the government having 110 days to respond to the advice from customs. BlueScope’s Australia and NZ CEO Mark Vasella wants the tariff to protect the industry from cheap imported goods.

“Every country we named, every manufacturer we named, has been found to be dumping hot rolled coil into Australia and injuring our business,” he said.

The tariff applies to hot rolled coil steel, used in white goods and automotive manufacturing, which is imported from Japan, Korea, Malaysia and Taiwan. But with other manufacturers in the country saying the tariff will only hurt their business, the government is dealing with a difficult balancing act over who needs the most assistance and what else can be done. The car industry in particular has led the charge against the tariff, stating that any tariff on imported steel will push up their costs, making the car manufacturing industry in Australia unviable if access to cheaper steel is cut.

“I’m incredulous at what seems to be the path that is being taken,” said Michael Devereux, General Motors Holden managing director.

“I cannot even begin to tell you how bad that is for business, what it will do is increase our input costs,” The car industry employs around 300,00 people but with 85 per cent of the cars bought in Australia being imports, the tariff is being criticised for its potential to cripple an already struggling industry. Ford and Toyota also joined the fight against the tariff warning that increasing costs

would only put the industry under more pressure while Ford’s general purchasing manager even went so far to say that the company would not be using BlueScope steel even if the tariff is legislated.

“Any incremental duties will not add to BlueScope’s product portfolio as we are unlikely to change any steel grades currently in use,” he said. But while the car manufacturers have slammed the proposal, others are calling on the industry to remember that they too prosper from generous government protection policies. It has been reported that the Federal Government is preparing a bailout package for the car industry worth more than $5.4 billion. A claim which has seen media outlets taken to court as both the government and the car industry itself does not want exact dollar amounts published.

Especially since the money is coming from taxpayers back pockets.

But it’s not just the car makers who are up in arms about the protectionist tariff. Other service sectors are also arguing that the tariff will make their business costs soar and are urging for government not to go ahead with the plan. A comment posted by a Manufacturers’ Monthly reader highlights the struggle most manufacturers are facing with production costs and the high Australian dollar: “Our business only survives because it has access

to alternative supply other than our 2 major (sic) aust (sic) manufacturers,” the reader began. “Every time we have a possibility of duties/ tarriffs our importers hang off on ordering and our Aussie manufacturers get unfettered market share and increase our prices. Competition is fair. All that will happen is our finished goods will come from overseas instead of being manufactured here from cheapish steel.” This is a view shared by others in the industry also with Master Builders Australia warning that the tariff will have adverse effects on major steel users such as the construction industry and that it should not be implemented.

A D Coote & Co, a streetlight manufacturer has also warned of potential job losses coming off the back of the tariff: “We’d probably have to look at importing more finished product rather than manufacturing here, which would possibly affect the number of employees we have,” said Mick Eidam, the company’s product manager. With the government set to make its decision in the coming months and with major conflicts on both sides, what the government is effectively deciding on is if it plans to implement protection policies for major manufacturing sectors in Australia, or if it will cease to use give handouts and let company’s inefficiencies and the market sort out the mess. manmonthly.com.au

Slouch hats to remain Australian made

T

he Australian Defence Force will continue to procure slouch hats from the Australian companies Akubra and Mountcastle.

The 20,000 hats manufactured each year - worn by the Australian Army and Royal Australian Air Force - and purchased by the federal government will be sourced from Akubra (who has been making them for more than 80-years, according to the company) and Mountcastle (which was established in 1835, and who claims to be the country’s oldest hat maker).

Procurement policies would allow the hats to be imported, if this represented better value for the taxpayer.

The slouch hats will continue to be made in Australia.

However, an exemption for its manufacturing was created in 2011,

citing that the slouch hat is a ‘national treasure of historic value’ .

Man injured in meat processing plant A man has been freed after he had his arm trapped in a machine at a meat processing plant in New Zealand.

Emergency services were called to the incident at Te Kuiti Meat

Processors after reports of the severe injury emerged.

According to a St John Ambulance spokesman, the 20-year-old man was flown to Waikato Hospital with severe injuries.

The BOGE brand: First-Class-Engineering made in Germany.

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manmonthly.com.au

The Ministry of Business, Innovation and Employment is making preliminary inquiries into the incident.

The meat processing plant has not yet commented on the incident.

Toyota issues massive recall Toyota, the multinational automaker, has recalled 7.4 million vehicles globally over faulty power window switch that can cause fire.Approximately 300,000 cars have been recalled in Australia.

The company is recalling models produced between 2006 and 2010.

According to Toyota the power window switch, located on the driver’s armrest, may not have been evenly greased during production, causing friction and sometimes smoke and fire. Toyota stated that there have been six reported cases with the switch in Australia.

The cases stated that the switch does not operate smoothly and has a sticky feel. Beck Angel, a Toyota spokesperson, has cautioned against using commercial lubricants as a fix. “This recall is a precautionary measure,� Angel said. She went on to say that “the switch will be checked mechanically and electrically for correct operation and specialised electrical grease will then be applied to ensure it operates when pressed.�

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AnalysisNEWS Chinese market devours Oz cheese

I

ncreased Chinese demand is going to mean a big boost in sales for Australian diary manufacturers, particularly cheesemakers.

China’s demand for Australian dairy products increased 4.7 per cent to $291 million last year, with cheese up 22 per cent.

Meredith Dairy’s managing director, Rugby Wilson, was ssuprised by the increased exports.

“We were a bit stunned at the demand in China though we haven’t yet turned it in to a reality,” Wilson said.

Chinese incomes are rising, and the country’s demand for betterquality food is following.

Earlier the US Department of Agriculture released a report highlighting the boost in Australian dairy production after the drought’s end and strong rainfall in the last two years. It also pointed to the increasing world demand for dairy.

“Export-oriented processors [mainly in Victoria and Tasmania] are expected to step up production to

12 NOVEMBER 2012 Manufacturers’ Monthly

Chinese demand has been a boon for Australian dairy. meet world demand for dairy products,” the USDA report stated.

Rabobank’s senior dairy analyst Michael Harvey said demand for cheese was strong all round, especially in China.

“The global market is growing at 2.5 per cent a year, but China is

twice that,” he stated.

“It’s from a small base, but it’s a blistering rate in a very big market.”

China’s food security issues are expected to become more prominent.

It overtook the United States as the world’s biggest importer of food last year.

New South Australian manufacturing grants The South Australian Government has announced of a new grant scheme in advanced manufacturing for companies to collaborate with established research bodies.

Under this scheme the government will distribute $ 1 million innovation vouchers to connect small and medium enterprises (SME’s) with research institutions. The vouchers will be valued at $10,000 to $20,000.

South Australian manufacturing, minister Tom Koutsantonis said “the scheme was one of several programs under the forthcoming manufacturing strategy. “This program and a range of other initiatives aim to support manufacturers to innovate and deliver high-value commercial outcomes,” Koutsantonis said.

Candidates will be chosen by a team of Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE), Department of Further Education, Employment, Science and Technology (DFEEST), and industry representatives.

manmonthly.com.au

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TechnologyIT@MM MES back in focus Manufacturing Execution Systems (MES), designed to manage manufacturing operations, are raising their profile with increased functionality and strategic importance. Alan Johnson reports.

M

ES software systems have been around since the early 80s, with reasonable adoption rates, but the software is now attracting renewed interest in Australia as senior managers recognise the many benefits it offers them.

David Keenan, VP – Industry Sector Siemens Australia & NZ, says a major trend in the decision to implement MES, or MES functionality, is the involvement of executive level management.

“MES systems are increasingly the subject of strategic corporate investments and are being seen as enablers of the corporate strategy.

“In the past, decisions to implement MES or MES functionality were usually taken on the plant level, or on a functionality needs basis.

“Some key technology enablers for management are the need to converge the top floor visions and shop floor systems, drive overall value (through governance, quality,

14 NOVEMBER 2012 Manufacturers’ Monthly

cost management etc.), and optimum market responsiveness through sustainable value creation processes,” Keenan told Manufacturers’ Monthly.

Alison Koh, Solutions Marketing Manager with Schneider Electric, believes Australia has been lagging behind the US and Europe in the adoption of MES, “mainly because there hasn’t been a big need from a lot of the industries we have in Australia”.

“One big user of MES is the food and beverage industry, with very stringent legal and regulatory compliance needs. These companies have put MES functions into their automation process.

“Now, other manufacturers are looking at MES as a software tool to improve efficiencies and help companies achieve their goals,” she said.

But Koh warns MES is about the processes, and the people. “If you don’t have them both in tune, MES won’t work. That’s been one

of our core learnings at Schneider Electric.”

She says the people component of the equation is very important.

“Over the years we have had to implement alot of change management processes into the work that we do with producers.

“Often the operators are not putting the right data in, so if you have bad data going in you have bad data coming out and bad decisions can be made.”

She says it is important that supervisors validate the data, especially when it comes critical downtime.

“A plant might be down for a couple of hours and if the operator has put some wrong data in, this can become critical for the supervisors.

“They have to look at the root cause and to make a judgement call, but is it really the root cause? They can validate it or change it or maybe discuss it during toolbox meeting.

“When they, the plant managers or operational directors, come to make

decisions it is important they are looking at the right data.

“Bad data, this is the fundamental architecture underneath MES, will only collect data from a control solution and then have operator input, so is critical to have a validation stage.

Operators are only human and they do occasionally stuff up.

“Recently we put in an asset management downtime system into a major Australian manufacturer.

“When the production line was down, the system asked the operator to put the root cause in. However, the operator was putting “mechanical breakdown” every time, and management was thinking there was something wrong with the system.

“However, when our engineers visited the site they saw that the operators were simply using the first item in the drop down menu.

“When the engineer changed the order of the possible problems so that “operator error” was at the top, they started to look right through the manmonthly.com.au

list to the most relevant error and the results changed overnight. “Which only proves that operators are only human, but it also shows a validation stage is important, and below that you need the right automation architecture,� Koh said.

MES trends Koh explained that Schneider Electric is in the process of releasing its new plant structure system as a brand; “a new name for our automation system which is based on our existing software and hardware�. “We are leveraging across that with an Ethernet architecture offering customers a much tighter integration across our hardware and software products.�

She said the move to Ethernet started a couple of years ago, “and open standards are now a critical trend for Schneider Electric. “On top of that we have a single unified software environment for design, to help engineers build projects, and also for operations. “For us this is the next generation step, where we are using a single

piece of software for supervision and control within the operation space.�

Koh said it was a bit step for the company. “But it has that connectivity and single database object oriented approach which our customers are demanding. “For example, if they have a pump in the field, they want to manage the control logic, plus the supervisory vision systems, SCADA, and they want to do that in one object. “If that pump is connected to a motor, they also want to manage the VSD for that motor in the same object. “We are moving to object oriented approach across the automation space, not just across the SCADA space, but down into that device layer including motor starters, power meters, variable speed drives, plus out in the field, leveraging off all the standard open fieldbusses that are out there. This allows a lot of flexibility for customers,� she said.

Koh also said she is seeing a distinct move to locate controls in remote locations “due to the skilled labour shortages, and to improve

energy efficiencies, and the move to standardisation of controls, companies are starting to see the real value of consolidating their controls in remote operating centres. “For example, a company might have six factories in Sydney, or around Australia, and they will consolidate control into one of these factories. “The real value customers are getting from this consolidation is, not reducing the number of operators, but rather having the planner, schedulers and maintenance guys sitting together. “By sitting together and engaging and getting real returns simply by cutting down those barriers on the back of these remote operating centres,� she said.

Koh also says standardisation is now a big issue for manufacturers. “While they don’t want to spend a lot of money on investments at this stage, there are big gains that they can make across the life cycle of their plant by having standardisation, and moving away from spaghetti automation into a standardised

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framework, offering flexibility. â&#x20AC;&#x153;With a standardised system, they can easily add more to the automation system, or take away, and itâ&#x20AC;&#x2122;s not going to effect other parts of the system. â&#x20AC;&#x153;Itâ&#x20AC;&#x2122;s not point to point anymore, itâ&#x20AC;&#x2122;s what we call SOA (service oriented architecture) in which everything that is connected on that Ethernet architecture framework can pull the information that they need at the time that they need it. â&#x20AC;&#x153;We leverage a lot into continuous improvement by having MES, but it is only as good as the people and the processes, so we also like to talk about, not just benchmarking, but how to improve that benchmark and get customers OEE up from the typical 40 per cent to 50 per cent, then up to world class which is around 70 per cent for a batch type process,â&#x20AC;?

Koh said.

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manmonthly.com.au

Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2012 15

TechnologyIT@MM Touch panel PC BACKPLANE Systems Technology has released Avalue’s 15” LPC-1503 touch panel PC. Powered by an Intel Atom N270 processor, which reduces the power usage and saves operation costs, the LPC-1503 features a 15” TFT touch panel screen, with 5-wire resistive touch capacity.

A screen with 5-wire technology has a high capability for long-term usage in high traffic areas. The LPC-1503 has an IP-65 safety rating, making it suitable for use in industrial environments, plus its front panel is dust and water-proof.

The PC features an onboard system memory of 1GB DDR2, in a single 200-pin DDR2 SODIMM socket that supports up to 2GBDDR2.

Based on an in-depth, flexible

tion across the different divisions within the plant.

“It can also take care of the plant centric functional requirements due to its modular and scalable approach. It allows companies to establish an enterprise technology enabler enforcing value-driven strategies from the business to performance measures on the plant.

“The software platform includes a Production Suite designed to fill the gap between business systems (typically ERPs) and control systems, creating the conditions for an increase in the efficiency of the

16 NOVEMBER 2012 Manufacturers’ Monthly

Open-platform browser

concept and diversified I/O deployable design, the PC is said to fulfill the serial port connectivity for industrial control for many different applications.

Backplane Systems Technology 02 9457 6400, www.backplane.com.au.

INTERMEC has announced a new HTML5-capable browser that allows for the development of web applications that can be utilised by iOS, Android and select Intermec rugged mobile computers, bettering workflow efficiency and offering increased flexibility to mobile workforces.

The HTML5 offering includes a true web browser application for multiple models of Intermec’s handheld computers for Windows Mobile and Windows Embedded operating systems.

Additionally, the HTML5-capable browser supports applications designed to run either on-line (connected to a web server), off-line (no connection to a web server) or a combination of the two.

Built on the WebkitTM engine,

like iOS and Android, the browser is offered preloaded and free of licensing fees or license activation requirements on a range of Intermec devices. HTML5 applications that run on consumer-grade smartphones and tablets can also be run on these select Intermec rugged mobile computers without changes or rewrites.

Intermec 02 9330 4400, www.intermec.com.au.

overall supply chain. The Production Suite is a collection of integrated components with a broad range of functionality designed to coordinate the systems within each factory and standardise production across the entire enterprise for a better performance.

As well as an R&D Suite which allows companies to capitalise on their brand value and R&D potential and develop new products faster due to a seamless link between R&D and Manufacturing processes and data, the platform also includes an Intelligence Suite which can trans-

form and unify real-time, historical and business data collected during production activities from single or multi-plant environments.

Keenan says benefits of the platform include full traceability across the different functional departments, plus full transparency of operations at the Enterprise level to help ensure quality and governance.

“Without the comprehensive view of production MES provides, management risk making poor decisions across the rest of the enterprise, Keenan added. “Benefits also include guidance for operators that

initiate quality instructions, enforcing best practice processes.

The system also generates data to use for regulatory or customer compliance about the product and its history as well as the process by which it was produced.

“Plus accurate and timely information on the detailed production levers that plant employees/ management need to identify and correct, or possibly prevent, problems,” Keenan told Manufacturers’ Monthly.

Schneider Electric, www.schneider-electric.com.au.

Seimens, www.siemens.com.au.

The touch panel screen features 5-wire resistive touch capacity.

The browser is offered preloaded and free of licensing fees or license activation requirements.

manmonthly.com.au

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OffshoreMANUFACTURING

Sherrin cuts subcontractors, ends child labour As more Australian manufacturing moves offshore, can you really know who is making your product? Hetaal Badiyani reports.

A

ustralian football manufacturer Sherrin, recently suspended its operations in Jalandhar, India, after discovering synthetic footballs to be used for AFL’s program, Auskick, were made by underage workers.

An investigative into one of Sherrin’s sub-contractors found it breached Sherrin’s Code of Conduct and allowed balls to be stitched outside the facility, hiring children in the production of a small quantity of its footballs.

Investigations suggested that children as young as 10 and mostly girls were being pulled out of the school to hand-stitch balls for 10 hours every day, seven days a week.

The entire process of hand- stitching a ball for AFL took approximately more than an hour to finish, for which the children were paid only seven rupees which is about 12¢.

Sherrin claimed it knew nothing of the matter and took consumer safety extremely seriously, immediately 18 NOVEMBER 2012 Manufacturers’ Monthly

ceasing all dealing with subcontractors in India. Russell Corporation, Sherrin’s parent company said it was extremely grateful the matter had been brought to its attention and that no balls would be allowed to be subcontracted out for stitching.

“We have a zero tolerance policy regarding the use of underage workers, and we are appalled that one of our subcontractors has used child labour in the stitching of our footballs. We have an extremely thorough global corporate social responsibility compliance program including prohibition of the use of underage workers. All manufacturers must be in full compliance with all applicable local laws and standards and they are continuously reviewed by a globally accredited third party auditing company,” Chris Lambert, Sherrin’s managing director said.

Lambert stated that “we have an exceptionally rigorous ongoing auditing process for all our contractors and subcontractors.

In recent years over peak periods the supplier has outsourced approximately 5% of the stitching component only to four subcontractors.

“We believe that this fault is linked to the subcontractor recently discovered to be in breach of our manufacturing standards when they outsourced, unauthorised, the stitching of balls to families within the Jalandahar region.”

He went on to say that “less than 9,000 footballs were outsourced to this subcontractor and we believe that the vast majority of these would have stitched in his approved stitching factory facilities.”

Lambert mentioned “we are also recalling all balls sent to this subcontractor for stitching this year (approximately 9,000 balls) so we can be absolutely confident that there is no risk that any Auskick balls produced in the last 2 years have been made using child labour and/or are subject to this product fault.”

“This is first time we have received evidence of the use of child labour. I was appalled to find this occurred. We’re shocked by this absolutely,” Lambert said.

The issue triggered further after a complaint from a Melbourne based father who claimed about a football with a needle in it.

Lambert stated that “the needle fault was linked to the sub-contractor who breached manufacturing standards. Another ball that did not reach a consumer was found with a needle in it.”

“All of our balls are put through rigorous quality control, including being subjected to metal detectors, and our subcontractors are also exposed to a stringent auditing process. In this instance, however, the process has clearly let us down,” he explained.

“To be safe and as a matter of extreme caution, Sherrin has decided to recall all the balls produced in 2011 and 2012, and to ensure that no balls stitched by this subcontractor end up in the hands of consumers.”

Sherrin’s stated that the company’s main supplier has also leased a new factory facility adjacent to their own existing premises, and all previous subcontracted stitching will be undertaken in this new facility to ensure absolute control of the use of underage workers.

According to Susan Mizrahi, a human rights and social responsibility advocate who has researched India’s sports ball industry said “that companies might not know about the use of child labour in their supply chains is no longer a sufficient excuse.”

She explained that poverty has been one of the main reasons for parents not being able to provide education to their children specially girls, forcing them to work full-time in order to support their families.

Sherrin has offered alternative employment to the families previously sub-contracted to stitch balls in their homes and will provide them the opportunity to keep working, under improved conditions, at Spartan’s factory, and for better wages.

“Sherrin is sending an Australian employee to India to be based there for long as it takes,” it added. manmonthly.com.au

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Flexible and rigid couplings VICTAULIC has launched QuickVic couplings which feature grooved, installationready technology.

The Style 177 and Style 107H couplings are designed to be installed in four easy steps: lubricate, stab, join, and then drive.

They are designed to provide a simple, time efficient solution in flexible and rigid pipe joining environments.

Suitable for use in the mining, HVAC and industrial sectors, the couplings are available in various sizes, pressure ranges and temperatures.

The Style 177 coupling delivers expansion, contraction and deflection capabilities to suit flexible pipe joining needs. In contrast, the Style 107H coupling provides joint rigidity, meeting industry standards for support and hanging requirements.

Both couplings feature the proprietary

The measuring flange can simultaneously measure drilling force and torque in-line.

Feature grooved technology.

EHP gasket material, delivering performance from -34°C to 121°C. Style 177 couplings are rated up to 1000 psi/6900 kPa, and Style 107H are rated up to 750 psi/5715 kPa, depending on pipe schedule and size.

Victaulic 1300 742 842 www.victaulic.com

Switch and proportional solenoids HYDAC has released a new series of switch and proportional solenoids.

The three models (EX-1195, EX-1516, EX-1517) have been developed with the special requirements of the company’s customers in mind.

The solenoids work as control elements for pneumatic and hydraulic valves. They form the basis for valves that may be used in potentially explosive atmospheres.

There are various casing dimensions and ignition protection types available.

The electrical connection is available in different cable versions depending on the ignition protection type. All versions

Force and torque measuring flange SI Instruments has introduced the Manner force and torque measuring flange for mining operations.

Manufactured in Germany, the flange can simultaneously measure drilling force as well as drilling torque in-line to optimise the drilling process. An IP67 rating means the flange may be used in harsh conditions.

It is supplied with a rechargeable battery pack that is charged inductively.

The radio telemetry system used by the flange eliminates the need for cables

during operation.

The flange can be manufactured to any capacity specifications.

The company states that the low profile design offers fast signal response and minimum impact on existing designs.

Further data processing can be done by integrating the flange to the network via CAN, Ethernet or USB. SI Instruments 1300 298 621 www.si-instruments.com.au

Flange pressure transmitter are available with a manual emergency override.

The solenoids are available with or without manual emergency override and are available with IECEx approval.

Hydac 1300 449 322 www.hydac.com.au

AUTOMATED Control and STS have released the ATM/F/Ex flange pressure transmitter.

Manufactured from stainless steel, it has a compact design and is suitable for use in hazardous environments. It features a piezoresistive measuring element and can be calibrated for use in most common pressure units.

Safety features include reverse polarity and short circuit protection, with an additional option for surge protection according to EN 61000-4-5. It is capable of measuring pressures ranging from 100 mbar to 25 bar to an accuracy of ≤ ± 0.50%, 0.25%, 0.10% FS. Automated Control www.automatedcontrol.com.au

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Oil-free centrifugal compressor

Three port gas adsorption system

CAPS Australia now offers the new C1000 Centac centrifugal compressor. The unit incorporates a streamlined design which is intended to simplify installation into any industrial setting.

According to the company, the compressor is one of the most efficient in its product range due to its design, use of optimised components and userfriendly operation.

The compressor is designed to minimise the overall cost of ownership by reducing energy consumption and operating costs.

The unit can supply high volumes of compressed air required for applications

PARTICLE & Surface Sciences introduces the new 3Flex high resolution three port gas adsorption system from Micromeritics.

The gas adsorption system is a surface characterization analyser designed as a fully automated, three-station instrument capable of high-throughput surface area, mesopore and micropore analyses with high accuracy, resolution and data reduction.

According to the company each analysis station, with its own dedicated transducer for simultaneous sample analyses can be used for either mesopore or micropore analysis.

The gas adsorption system also includes krypton capability for low surface area materials.

The MicroActive software for the system is an interactive data manipulation application that permits the user to accurately and precisely determine surface area and porosity.

User selectable data ranges through the graphic interface allow direct data modelling for BET, t-plot, Langmuir and

such as smelting, mining and food or chemical processing.

The latest design comprises the main compressor unit and at least three coolers, all mounted on a castiron frame. It also features heavyduty motors and uniformed hardened components.

The unique vertically-split arrangement of the design provides easier access to major components of the compressor which is said to reduce maintenance and servicing time.

Caps Australia 1300 284 896 www.capsaust.com.au

Package leak tester BESTECH Australia has introduced the new Seal Tick 6081b standalone package leak tester, which is designed for fast, simple and reliable automatic leak testing of flexible packaged products.

The package leak tester finds application in packaged food and

pharmaceuticals where the integrity of the package seal is crucial to ensure qualities such as long shelf life and taste for sealed food packages.

Bestech Australia 1300 209 261 www.bestech.com.au

The adsorption system is capable of surface area, mesopore and micropore analyses DFT interpretation, minimising time to develop results.

Particle & Surface Sciences 1300 350 287 www.pss.aus.net

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Innovation

Utilising technology is just as important as developing it

Automation technologies have also worked their way into daily life, with VSDs, PLCs, and HMIs increasingly built into consumer products.

Realising there is more than one application for manufactured products or technologies is key.

Ingham added that at Sensor “we have invented relatively few new technologies, but we have applied each to many different areas, sometimes by our own endeavours, sometimes by licensing or selling the technology”.

He pointed to ‘secondary’ or ‘supporting’ technology that can be transferred as well.

Discussing Sensor’s ToroqSense - which uses surface acoustic wave sensors to measure torque in rotating shafts, Ingham stated that “to make it viable we had to developed a noncontact way to collect the data, so that we didn’t have to use slip ring; so we combined radio transmissions with piezo technology and got our solution.

“At the same time we were talking to a helicopter pilot about a differ-

Innovation advantage Manufacturing’s future is not just innovation, but how it develops new tehcnology.

I

nnovation has always been the key to success in the manufacturing industry.

And while the manufacturing sector leads the nation in innovation, it can not expect to develop ground breaking, new technology every single day.

Being able to full utilise the technology is just as important as developing it in the first place.

One of the best ways to fully utilise it is through technology transfer, finding new ways to adapt your technology for use in other processes.

According to Sensor Technology’s Tony Ingham, the principal of technology transfer is helping the U.K. to drag itself out of its current manufacturing slump, and may also help Australia to rebuild its manufacturing base.

He explains that research and development isn’t always going to lead to the newest innovation, stating “of course there are failures along the way; in fact if you were to

22 NOVEMBER 2012 Manufacturers’ Monthly

count them up, probably more failures than successes, but the important thing is that the successes [and innovation] can be capitalised upon to more than cover the cost of the failures.

“This is pretty much the standard model for innovation that economists talk about.

“But my feeling is that this misses out on one critically important point, namely ‘technology transfer’ - introducing the invention to ever more sectors and possible new users, by either tweaking the technology or repackaging it to meet specific needs,” Ingham said.

Some of the most publicised examples of this include space technology, where innovative products developed for NASA have been used in other aerospace technology, then commercially, then used in other non-aerospace applications.

Geospatial Positioning Systems is a classic example of a military innovation that has become a part of every day life.

ent project when he mentioned that because he had a wired cargo load gauge in his cockpit he was going to have to get his aircraft’s airworthiness certificate renewed at a higher costs due to modification; so we simply used our technology to create a radio link between the cargo hook and gauge which would mean that aircraft was not technically modified,” Ingham explained.

Now the secondary technology is an entirely new revenue stream as the company sells its ‘intelligent cargo hooks’ to helicopter operators globally.

It is not just about being innovative, but also how you use that innovation.

Many Australian manufacturers have looked at repurposing their products for the mining space.

However “the important point is that if the government wants to remodel the national economy to make manufacturing stronger, then they need to encourage technology transfer as much as innovation”. manmonthly.com.au

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Motors& DRIVES Driving down costs Variable speed drives are helping manufacturers to drive down energy costs

W

ith the carbon tax biting, many manufacturers are looking at any way they can cut down energy use.

One way to battle rising energy costs is by focusing on industrial motors and drives.

Over the last decade motor and drives technology has made massive bound forward, particularly in regards to efficiency and the day to day costs of doing business.

According to motor and drives manufacturer Bonfiglioli “even straightforward initiatives - such as the adoption of variable speed drivers instead of fixed speed drives - can produce savings that will more than offset the costs of the Carbon Tax currently imposed on Australia”.

However “the biggest problem is that the technology is growing so quickly that it can be hard to

keep up with all the changes and understand which is the correct option for individual companies, especially if they haven’t looked at their options for a few years”.

It went on to state that “perhaps the government has role here in sponsoring holistic audits of company energy use which would undoubtedly produce major savings through the use of advanced technologies, such as, in our case, advanced and versatile VVVF and Vector electronic drive technology, including the Vector Controlled Inverters SYN, SLP, ACT, VCB series”.

For quick energy savings on site companies can see if they have any fans or pumps that are not being controlled by a variable speed drive, where the flow of the pump is usually being controlled by a valve or flow regulator.

VSDs are 94 to 98% efficient.

“Installation of a variable speed drive on these applications has one of the biggest potentials to save money and supply a quick payback time by reducing motor speed and thus reducing motor current,” Bonfiglioli said.

It added that variable speed drives are generally between 94 and 98 per cent efficient.

In stop-start operations it can chew through power, drawing five to seven times full load current, which can fatigue motor windings, generates high heat in the motor and in some cases causes supply grid voltage dips, which may even lead to penalties.

Variable speed drives however limit the starting current to between 150 per cent and 200 per cent of full motor current, which means users can generate full motor torque down to virtually zero speed, which will reduce high inrush currents and motor fatigues.

For instance “by putting a variable speed drive onto a common centrifugal pump and reducing the speed 24 NOVEMBER 2012 Manufacturers’ Monthly

by around 20 per cent, users can see power savings of around 30 to 50 per cent”.

Old practices of running motors direct on-line and using other means to control flow or temperature as still widely used and cost companies a lot of money.

Many manufacturers and material processors install variable speed drives to simply allow the machine to have a variable speed, but modern VSDs can also have a variety of industrial sensors incorporated to allow the drive to control the process better, with more control- and save the cost of a PLC or separate controller.

Also, many manufacturers and processors think that installing a soft-starter is a better option than a VSD, but in fact the soft-starter will also draw larger currents and may not be able to accelerate the load.

At the end of the day it simply about “getting your business to run more efficiently and reducing your running cost over both the short and long term”. >> manmonthly.com.au

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Motors& DRIVES

Driving your operation Selecting motor control is just as important as the motor itself, Amin Almasi writes.

T

he importance of correct selection of turbo-compressor system control elements (such as the anti-surge valve selection, valve opening and closing times and others) should always be emphasised.

The dynamic simulation should be employed as a tool to achieve the optimum sizing and selection for control components and parameters in each stage of the project.

In other words, dynamic simulations should be performed at different stages from basic design, to

26 NOVEMBER 2012 Manufacturersâ&#x20AC;&#x2122; Monthly

detailed design, final verification, and during operation.

Usually in early stages of a project, some assumptions should be made for the first dynamic simulation.

While these assumptions should be on a correct basis, they may not be the best options for the final turbocompressor arrangement.

The design should not be limited to those initial assumptions. Figure 1 shows an example of a modern centrifugal compressor. In case of a â&#x20AC;&#x153;surgeâ&#x20AC;? the whole rotor system will

vibrate axially which could damage the axial bearings (axial bearings) or the seals.

Control Element Selection The origin of many parameters particularly control valve or on/ off valve opening/closing times are initial assumptions made in an early stage of design to let the first dynamic simulation completed for finalisation of some critical issues such as the anti-surge valve sizing, the hot-gas-bypass requirements, the basic anti-surge arrangements or similar.

In a case study for a centrifugal compressor, for the dynamic simulation at the basic design stage, an assumption was made to use 0.8 second per inch of valve sizes for opening and closing time for all suction/discharge valves (since valve data were not available that time, at early stage of the project).

This assumption could reflect the maximum actuation time that may be expected for some large on/ off valves (ordinary on/off actuated valves can achieve around 0.5-0.8 second per inch).

These assumptions were used for

the basic design dynamic simulation which resulted in the anti-surge arrangement freeze, anti-surge valve sizes and anti-surge valve opening/ closing time (in this case 2 second opening time and 4 second closing time).

However, the engineering contractor used basic design dynamic simulation assumptions as a basis for specifying all actuated valves in the suction and discharge. In this way, the engineering contractor specified 0.75-0.85 second per inch for all main suction/discharge valves opening/closing time, considering if initial assumptions of the first dynamic simulation kept within certain limits, the first dynamic simulation could remain valid and there is no need for other dynamic simulations.

It is a poor design decision.

These specified values (0.75-0.85 second per inch for opening/closing time) may not be wrong based on the initially assumed timing value (0.8 second per inch), but there could be some difficulties to supply or verify actuated valves with such tight actuation timing and also the final result could be a sub-optimum arrangement.

Optimum valve characteristics should be obtained based on a new dynamic simulation.

In this case, the second dynamic simulation is performed (considering the anti-surge arrangement, antisurge valve sizing and anti-surge valve opening/closing time as final) and optimum reaction times are obtained as 0.71 and 0.64 second opening/closing time per inch for the suction valve and the discharge valve, respectively.

To accurately and reliably predict the dynamic behaviour of turbocompressor systems, the dynamic model has to be supplemented with accurate input data based on as-built equipment performance.

For example, volume of various vessels and piping systems should be accurately modelled based on fabricated (or isolated) pieces of equipment.

The controllers used in the dynamic simulation models are often simplified based on basic control strategies.

In this way, the simulated control systems do not represent the funcmanmonthly.com.au

tionality of actual field controllers, which could have a server effect on the results of the dynamic simulation.

A recommended solution for inaccuracy of simulated controllers could be using a â&#x20AC;&#x153;direct control-hardware linked simulationâ&#x20AC;? approach instead of conventional software emulation.

This method can guarantee the simulation accuracy and the functionality of field-installed controllers.

During the dynamic study, an integrated software-hardware solution should be developed by linking a rigorous plant dynamic model to a vendor supplied controller emulator (which is based on the actual vendor controller).

The requirement should be discussed with the compressor vendor (or the supplier of the antisurge system) in the early bidding stage, before the order placement.

Once a dynamic model is developed, it should then be validated against the design and the actual operating data to ensure the accuracy of the modelling.

Understand your needs.

Valve Selection Anti-surge valve requirements depend to a large degree on the turbo-compressor details, and the turbo-compressor system arrangement.

The different aspects of the antisurge valve sizing and selection are

described in greater detail.

The larger the anti-surge valve, the more flow that can be moved from the discharge side of the turbocompressor to the suction side.

The speed of valve opening is also important for a turbo-compressor anti-surge application.

Generally, the larger the valve, the slower its opening time.

Also, the larger the valve, the poorer its controllability at a partial recycle.

The situation could be improved by using a large valve that is boosted to open, thus combining a high opening speed with a high-flow capability.

An optimum anti-surge valve should be selected for any turbocompressor.

In a case study for a turbocompressor, two anti-surge valves with the same opening time (around 1 second) were evaluated.

The small anti-surge valve resulted in the shutdown surge at a moderately high pressure.

The large anti-surge valve (with around two times the Cv compared to the small one) resulted in a major reduction in the head.

The shutdown surge occurred at a pressure just above the suction pressure.

Most information required for the sizing of the anti-surge valve is available on the turbo-compressor map. >>

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Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2012 27

Motors & DRIVES Commonly used margins are that the anti-surge valve should be capable of passing 100% of the surge flow-rate at around 50% of the valve opening. In other words, the anti-surge valve Cv is selected from approximate range of two times of the required Cv based on the surge flow on the curve of the highest turbo-compressor speed (on the turbo-compressor map).

The other requirements of antisurge control valves are: 1- Reduction of the stroke time.

2- A stable response.

3- Minimized overshooting during valve adjustment steps.

Too fast a response could result in an excessive overshoot and a poor accuracy. However, too slow a response may result in sluggish opening of the anti-surge valve.

Correct size and configuration of the required actuators, instrumentations and accessories could guarantee an anti-surge valve response time of less than 2 seconds (to fully open).

For a large anti-surge valve, the anticipated noise level (before an external attenuation) should never exceed 100-110 dBA with fluid velocities below 0.3 Mach.

The inline and symmetrical flow path eliminates indirect flows and unnecessary changes in flow directions through an anti-surge valve. An axial-flow anti-surge valve is a wellknown option.

The “breaker vanes” are often used in the downstream section of the valve body, which cut and streamline any flow turbulence (significant reductions in the noise, the turbulence, and the vibration).

High range-ability (the ratio between the rated Cv with completely open valve and the minimum Cv that the valve can control) is required (typical range-ability “150:1”), which means a successful control even with a high ΔP and a low flow. To increase the range-ability, special trims should be used.

In order to obtain service reliability, following considerations should be respected: 1- Anti-surge valves usually fitted with pressure balanced pistons (the thrust should be independent of differential pressure across the valve).

2- Bushings are anti-seize and selflubricated.

3- Proper packings should be used.

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28 NOVEMBER 2012 Manufacturers’ Monthly

Pick the right control

4- The trim materials are carefully chosen. The material should be corrosion-proofing and erosionproofing.

Proper stainless steel alloys for usual services, or sintered tungsten carbides for special cases are typically specified.

Rapid changes in the differential pressure across the anti-surge valve should have no effect on the stability of the valve position.

In modern designs, the sealing is achieved usually by the position (and not by the torque).

Leakages across the anti-surge valve will influence the efficiency of any turbo-compressor system.

In a case study for a medium size high pressure centrifugal compressor, with an 8” class 900# anti-surge valve and 70 bar differential pressure, the valve leaked approximately 150 Nm³/h of the process gas.

A typical “one anti-surge valve, one turbo-compressor casing” arrangement is always recommended.

More complex systems of cascaded valves or valves around multiple compressors require a more detailed analysis and sophisticated provisions.

Generally two types of anti-surge valves are used: • Globe valve.

• Noise-attenuating ball valve.

The globe valve’s capacity (Cv) approximately varies with the square of the percentage travel. The noiseattenuating ball valve’s capacity (Cv) varies roughly with the cube of the percentage travel: • Cv~(travel)2 for a globe valve • Cv~(travel)3 for a ball valve The noise-attenuating ball valve will have more capacity to depressurize the discharge volume compared to the globe valve with the same size.

In a case study for a 6” (150 mm) size anti-surge valve, the Cv of a selected ball valve was more than 2.5 times of the Cv of selected globe valve (the same size). At 2/3 of valve travel, the selected ball valve flow was more than 50% higher than the same size globe valve flow.

This additional flow capacity sometimes makes the noise-attenuating ball valve theoretically a better choice in an anti-surge installation On the other hand, the globe valve behaviour is more predictable and more control-able (less nonlinear).

A ball valve usually offers a highly-nonlinear behaviour (Cv~(travel)3).

Both globe valve and ball valve are used in modern anti-surge systems.

Practically the globe valve is more common in turbo-compressor antisurge systems.

Amin Almasi is an engineer at WorleyParsons. manmonthly.com.au

Networking like thereâ&#x20AC;&#x2DC;s no tomorrow.

Absolute Single and Multiturn Encoders with Ethernet Interfaces Â&#x2021; (DV\ LQVWDOODWLRQ Â&#x2021; 6SDFH VDYLQJ FRPSDFW KRXVLQJ Â&#x2021; 3UHFLVH SRVLWLRQLQJ ZLWK RSWLFDO ELW VLQJOHWXUQ UHVROXWLRQ Â&#x2021; 'HYLFH OHYHO ULQJ UHOLDELOLW\ )RU GHWDLOHG LQIRUPDWLRQ DERXW RXU (WKHUQHW (QFRGHU SOHDVH YLVLW ZZZ VLFN FRP DX RU FDOO 7ROOIUHH

Motors & DRIVES Escalator drive systems for heavy use applications

The escalator drive system is said to be 20 per cent more energy efficient KONE has developed Direct Drive, an escalator drive system that is used in the company’s EcoMod 2 modernization solution, and is now available on a wider scale for new escalators.

The system is said to consume less electricity when compared to standard drives on the market such as helical or worm gear drives.

Due to its location outside of the step band, the system is easily accessible, so most maintenance tasks can be performed in the pit without the need to disassemble the steps.

It has a chainless design, and its motor is connected directly to the main shaft. This is said to reduce maintenance and spare parts costs as well as eliminate the risk of a drive chain failure.

Kone Elevators 1300 743 677 www.kone.com

Configurable CAD models for DC brush motors Pittman has released new configurable DC motor 3D model downloads.

The 3D model system is an online system through the PITTMAN website that allows an engineer to fully configure a DC brush motor with a wide variety of optional components such as planetary and spur gearboxes, brakes, and encoders.

The online 3D model system makes it easy for an engineer to evaluate different part configurations in a virtual environment.

The customer can configure a part by choosing such parameters as motor voltage, torque rating, gearbox ratio, and encoder resolution.

After configuring a part as many times as necessary, the file can then be downloaded in the most commonly used CAD software file formats, including Solid Works, CATIA, and Pro/E. The file also can be downloaded in a vendor-neutral format such as an .IGS or .STP file. The system allows the creation of a fully dimensioned outline drawing

Users can download CAD models for different motors. generated directly from the configured CAD model. After a virtual configuration is created using the online 3D model system, a product engineer can work closely with a Pittman applications engineers to create a more customised application-specific solution.

Options include optimised motor windings, unique shaft configurations, various bearing systems, output devices such as pinions and pulleys, special lead wire assemblies, EMI/RFI suppression networks, and various other features.

Pittman Motors, www.pittman-motors.com

Distributed frequency inverters NORD Drivesystems offers the SK 200E series of frequency inverters.

They feature several safety functions which, depending on the switching device, enable safe shutdown procedures in high risk applications that comply with Category 4 or Performance Level e according to EN 13849-1.

Conventional products in this performance class prevent motors from restarting by disconnecting the voltage supply or the 24 V control supply.

By contrast, SK 21xE and SK 23xE models feature a certified safe pulse

The new frequency inverters provide certified safety technology for applications up to SIL3.

blocking device as well as digital inputs for the “Disable Voltage” and “Quick Stop” functions.

In addition to high availability, the inverters’ safety technology is intended to provide a number of economic benefits.

Contactor components are not required, and since the safety functions are activated electronically, there is no need for regular maintenance or exchange of electromechanical contacts.

Nord Drivesystems 1300 050 347 www.nord.com/cms/en/home-au.jsp

Hydraulic components to complete packages Six companies merged to provide your hydraulics needs: gear pumps, piston pumps, monoblock to proportional valves, piston motors to suit gearboxes and more. Call us NOW for details.

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Unique housing UÊ } ÌÜi } ÌÊÜ Ì Ê } Ê ÊÊÊÃÌÀi }Ì UÊ > ÊÕÃiÊ vÊ >ÌiÀ > Ã UÊ ÊÃÕÀv>Vi

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Especially for the food sector UÊ « iÃÊÜ Ì Ê ÌiÀ >Ì > Ê Ê ÃÌ> `>À`Ã]Êi°}°Ê ]Ê - ÊÉÊ -- ]Ê - ÊÉÊ -

Innovative Drivesystems for Australian Industry

Light, powerful and washable: The bevel gear units in open and closed washdown versions are available with NSD TupH treatment, which protects them against acids and alkalis. The die-cast aluminium housings are highly resistant to corrosion. The gear units are especially suitable for use on conveyor belts as well as hoist applications, warehouse systems and overhead trolley systems.

For more informations visit www.nord.com.

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

DRIVESYSTEMS

MetalworkingLASERS A cut above New thermal metal working machines are cutting processing time.

A

CSIRO machining technology capable of machining titanium components up to 80 per cent faster has the potential to reduce costs of machining by up to half.

The technology, called thermally assisted machining (TAM), uses heat from laser energy to soften the metal immediately in front of the cutting tool, so that it is more easily removed – reducing wear on the cutting tool and prolonging tool life by up to three times.

TAM increases machining productivity in several ways – rough cutting time is reduced by up to 80 per cent and the material removal rate can be up to five times faster, with similar increase in the feed speed of metal past the cutting tool.

The CSIRO, leading a consortium including Queensland based SME Ferra Engineering, Lockheed Martin,

The lasers reduce tool wear.

RMIT University and CAST CRC, is applying the technology to develop an integrated production cell, which incorporates a moveable laser head into a 5-axis CNC milling machine in a factory environment.

It anticipates that the TAM technology will boost Australian industry competitiveness in production of precision milled and machined

components for the global aerospace and automotive markets.

The technology can be exploited for machining parts made from titanium, titanium alloys, and other hard metals such as nickel based superalloys and high strength steels.

Ferra Engineering, CSIRO’s Australian partner on the project, already holds several contracts for

manufacture and assembly of aerospace components for major customers including Lockheed Martin, Northrop Grumman and Marvin Engineering, including machining of aerospace assemblies made from titanium for the Joint Strike Fighter (JSF) program.

“Ferra’s innovation in titanium machining has been essential to our success in winning previous JSF contracts, so we’re excited to be a part of the CSIRO industry team working to commercialise TAM. We expect the TAM technology to be important in our continued growth as a supplier to the aerospace industry,” said Mark Scherrer, Managing Director of Ferra Engineering.

“We feel that reducing costs through innovation is a shared responsibility across the supply chain and we are making an investment in Australian innovation.

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32 NOVEMBER 2012 Manufacturers’ Monthly

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Metalworking& MACHINE TOOLS

Portability equals profit.

transport back to a workshop for repairs.

Consequently, the machine has to be transported to the workpiece, which is a very common scenario in industries working with large machinery, such as the resources industries.

For these, Brisbane-based Advanced Robotic Technology (ART) presents the fully portable Metaltek modular multi-function CNC machining system.

Processes such as face milling, drilling, pocketing, bevelling, thread milling, tapping, plasma and oxy profiling as well as surface mapping (probing) and reverse engineering

Increasing uptimes The need for some manufacturers to be mobile is now supported by portable CNC machining systems.

W

ith mining still trudging along in Australia there continues to be a high demand for machined and welded prodcuts and services.

For maintenance and repair of equipment which cannot be moved to the workshop, Advanced Robotic Technology (ART) now offers a portable, multi-function CNC machining system, providing a broad range of machining functions onsite.

Mining is on a precipice of exciting change. Volatile and emerging markets, new technologies, increased customer demands and a dynamic workforce will force the modern miner to become smarter. Mining

companies will have critical choices to make about every aspect of their business.

They can innovate or stagnate.

One important area for innovation is maintenance: Massively capitalintensive, mining business performance is tied to the availability, maintenance, financing and deployment of assets.

Repairs often create “double jeopardy” for many companies as emergency fixes have high costs while the asset is simultaneously down and not producing revenue.

The right repair equipment must be available, especially when machinery might be too large to

through digitising are all available with this range.

One of the Metaltek developments is a portable 5-axis CNC weld preparation machine.

Integrated 5-axis 3D torch control Moreover, innovative 5-axis technology ensures the machine is ideal for weld preparation, allowing bevel/contour cuts up to +/-45° in a single pass, drastically reducing time-intensive afterwork operations.

Precise 5-axis motion control enables hole cutting and weld preparation on curved or flat surfaces.

According to ART director David White, plasma technology is ideal for all grades of pressure vessels, boiler

plates or tubes, which can be cut, edge prepared, ready to be welded.

“The plasma cutting process is best-known for its simplicity and its ability to cut virtually any metal,” White explained. “These qualities plus the productivity it yields have made plasma cutting a universally accepted metal cutting process with a range of capabilities and applications.”

The machine features include high-torque servo drives, active dry fume extraction and filtration, intelligent torch height control, auto sensing drill tools and rigid tapping.

Flexibility and automation ART’s ProfileShop V3 touchscreen controller combines ease of use with advanced features to automate all cutting settings. The touchscreen controller gives ultimate control over every job and user log-in enables functions suitable to each operator’s capabilities.

“We are very excited about our new range of portable CNC machines,” White concluded.

“Mining in Australia is still booming as a result of soaring demand for commodities from resource-hungry economies such as Indonesia, China and India.

“Our portable profile cutters can be very valuable for the mining industry, enabling significant improvements in equipment uptime, which means greater return on capital investment translating to millions of dollars a day increase in production,” he aded.

Advanced Robotic Technology 07 3393 6555 www.advanced robotic.com

The Safe Welding Solution for the Mining Industry

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ZZZ OLQFROQHOHFWULF FRP DX 34 NOVEMBER 2012 Manufacturers’ Monthly

manmonthly.com.au

Women and welding

S

killsTech Australia has introduced a new free introductory course for encouraging women to enter the welding trade at the Bracken Ridge Training Centre.

This government funded program has been designed to provide basic level theory concepts to women and highlight available opportunities in the manufacturing, engineering and resource sectors.

SkillsTech Australia business manager metal fabrication and boilermaking Chris Naylor said â&#x20AC;&#x153;with continuing skills shortages reported in trade sectors this was an opportunity for women to sample what the metal fabrication industry had to offer.â&#x20AC;?

Naylor stated that â&#x20AC;&#x153;SkillsTech Australia is dedicated to responding to our national trade skills shortage; this is a great initiative to give women an insight into an industry they may want to consider working in.â&#x20AC;?

The course offers a basic skill set which runs during a fifteen-week period and is based on four competency modules. At the end, the

$%62/87( &22/$17 3522) &$/,3(5

Welding is seeking more women. students also receive a statement of attainment.

This program can serve as a platform to progress onto further study such as the Certificate II or III in Metal Fabrication.

The innovative concept was originally aimed at school students, but rising interest in the wider community has led to women of all age groups enroll in the first round of intakes.

According to Naylor, SkillTech may introduce similar courses in a variety of trade-specific areas in years to come.

The â&#x20AC;&#x2DC;Women Who Weldâ&#x20AC;&#x2122; program is a partnership between SkillsTech Australia and Manufacturing Skills Queensland, which is Skills Queenslandâ&#x20AC;&#x2122;s industry skills body.

)25 86( ,1 7+( 728*+(67 0,1,1* (19,5210(176

The latest welding range Lincoln Electric, the leading global developer and manufacturer of welding equipments, has added voltage reduction devices (VRD), insulation resistance testing friendly power sources, as well as enhanced arc air gouging functions to their range.

The VRDâ&#x20AC;&#x2122;s will offer increased safety protection for personnel on site by reducing the open circuit voltage while no stick welding or gouging is being performed.

Australian standards require this feature on constant current (CC) outputs however the Vantage 580 (and to be introduced Vantage 400) will offer the VRDâ&#x20AC;&#x2122;s reduced voltage on the constant voltage (CV) mode, enhancing the overall safety to operators. According to the Australian standards the insulation resistance testing has to be performed on a three monthly cycle (for transportable equipment), which required significant disassembly of the power manmonthly.com.au

source to perform the test.

This new range has been redeveloped to allow testing without disassembly, saving time and cost for the routine testing. Arc air gouging is important to maintain equipment fleet, and the Vantage 580 (and to be released Vantage 400), have a welding output mode specifically for gouging. The control software has a unique system which controls the machine output to perfectly match it to the available engine power for the very arduous short circuiting process involved in gouging.

Lincoln Electric also offers upgrade kits for existing Vantage machines which can increase productivity and machine â&#x20AC;&#x2DC;up-timeâ&#x20AC;&#x2122;.

Lincoln Electricâ&#x20AC;&#x2122;s power sources meet the requirements of Australian standards: AS 60974.1 and AS 1674.2.

Lincoln Electric 1300 728 720 www.lincolnelectric.com.au

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Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2012 35

Management PROTECTING IP The days of rampant counterfeiting appear to be passing.

Protecting innovation

By Damon Henshaw*

E

ffective enforcement of patents and other intellectual property rights (IPRs) in China has been a real concern for both Australian and overseas manufacturers over the last 25 years.

Low production costs were enticing, yet China also carried the potential risk of unchecked copying, and subsequent downstream damage to markets infiltrated by those counterfeit products.

Protecting products and innovation through patent ownership is a fairly standard business development strategy for manufacturers.

Intellectual property (IP) rights can be used to protect products and maintain market share, as well as block cheap imports.

36 NOVEMBER 2012 Manufacturers’ Monthly

Traditionally, an international patent filing strategy would firstly focus on the target market jurisdictions where IPRs are respected, and can be reliably enforced. This would regularly include Japan, USA and Europe - on the basis that those jurisdictions represent significant markets with reliable enforcement systems.

As little as 10 years ago, with its relatively weak IPR enforcement regime, China was often left off the list.Yet while China certainly used to be a safe haven for infringers and counterfeiters, an overhaul of the IPR enforcement system, and an increasingly affluent population – now becoming a major consumer market itself – means that China is now emerging as an important destination for protecting intellectual

property. A clear trend indicator is the number of new patent filings.

In 2011, for the first time, more patent applications were filed in the Chinese patent office than in any other country in the world, even outstripping the USA. The filing numbers have undoubtedly been inflated by government incentives, and a large number of applications may not pass muster under the scrutiny of Chinese patent office examination. However, the figures reflect a significant shift in the economy and the importance of IPRs in China. In parallel with the surge in new filings, China has also made substantial progress with their enforcement regime. IP cases accepted by the courts in 2010 reached a staggering 42,931, with verdicts rendered in 97 per cent of

those cases. In 2011, a further 40 per cent increase lifted the number of new IP-related Court cases to almost 60,000. By comparison, around 1,200 cases were handled by Australian Courts in 2011.To handle these cases, China has established special IP divisions and IP panels throughout its court structure, from the Supreme People’s Court, through People’s High Courts and in about 70 intermediate People’s Courts.

The sheer scale of China’s current commitment to IP enforcement is breathtaking. Until recently, damage awards for IPR violations in China were considered low, compared to the US, for example. However, even this is changing. In a recently reported case, a Chinese Court awarded an unprecedented sum of RMB 334m (US$ 53.4m) damages for infringement of a utility model patent. It would appear the Chinese Courts are now closing the damages gap.

This award of damages represents another stage in the evolution of the IPRs protection regime where, not only are rights available and enforceable to stop infringers, they are also given proper financial weight by the Courts. This sends a strong signal to infringers and brings enhanced value and credibility to IPRs in China. Many foreign companies have already started to engage the Chinese IP system, yet interestingly, foreign companies only represent about 60% of the plaintiffs in reported cases. The other 40% are Chinese; demonstrating significant adoption of the IPRs enforcement regime locally as well.

Should domestic businesses continue to embrace the IP enforcement regime, this will ultimately strengthen the system of rights and foster greater investment and development in innovation. In the past, stronger enforcement in China was a major demand from foreign businesses and governments alike. It seems that demand is now being addressed.

Although pirating and copying will continue to exist for some time, the intellectual property rights regime will continue to improve in China.

The days of rampant counterfeiting appear to be passing. * Damon Henshaw is Partner & Patent Attorney @ Davies Collison >> Cave dhenshaw@davies.com.au manmonthly.com.au

B2B SPECIALISTS

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Management PROTECTING IP

Protecting your IP in China While the Chinese government has made some moves to stamp out counterfeiting, it still remains a widespread problem for Australian manufacturers. Alan Johnson reports.

T

HE old adage that the only way to protect your intellectual-property in China is to ‘not to employ anyone’ still has a strong ring of reality despite repeated assurances by the central government in Beijing that China is cracking down on piracy.

Experienced Australian manufacturers, who have been operating in China for a while, confirm that it is often their own employees or partners who steal a companies’ intellectual property.

China consultant, Keith Mannin, says far too many companies that are new to the region fail to adequately prepare against such theft.

“However there are number of things companies manufacturing in China can do,” he told Manufacturers Monthly.

“Probably the most important first move is to first recognise there is

Problems still remain regarding counterfeit products coming out of China.

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38 NOVEMBER 2012 Manufacturers’ Monthly

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a problem and not ignore it simply because they find it distasteful to distrust their own staff or partners.

“The second move is to set up systems to reduce opportunities for people to steal a company’s IP and minimise the damage any such thefts will do to a company.

“The third move is to take all necessary legal steps to position the company to be able to sue anyone who steals its IP. “The way to do that is through contracts protecting trade secrets and by registering the company’s IP in China,” Mannin told Manufacturers’ Monthly.

The reality is that intellectual property protection in China remains porous: respondents to a recent survey by the American Chamber of Commerce in Shanghai said there had been “no change” in intellectual-property rights enforcement in the past year.

The same survey also ranked retention of talent far and away as the biggest human-resources challenge that companies currently face in China.

These two human issues are inextricably linked.

The well circulated case of a Ford product engineer who joined a Chinese competitor, taking with him thousands of documents he had downloaded onto his computer, is not unique.

This case came to light only because he later made the mistake of travelling to the US, where he was arrested and prosecuted.

Yet the boldness of the theft and the reality of China’s irregular enforcement record is what lingers with many senior managers and manufacturers.

Mannin warns that this kind of thing still happens far too often.

“At the close of business everyday, it could be your secrets walking out the factory door,” he said.

Australian exporters For Australian exporters, the news that the Australian Made, Australian Grown (AMAG) logo has now been formally trademarked in China will be welcomed.

This means that for the first time, Australian exporters have a symbol which can be used on their Australian-made or grown exports into China that both establishes their products as genuinely Australian and

as well as legally providing protection under Chinese law.

Ian Harrison, AMAG’s chief executive, said this trademarking is a major breakthrough for all Australian exporters.

“Historically, China has been a challenging environment for the protection of intellectual property.

“The Australian Made, Australian Grown logo’s formal registration in China as a country-of-origin symbol for Australia now provides an essential legal framework which exporters can rely upon in the event that the logo (or product carrying it) is copied or used without proper authority.

“The process took us four years, but now that it’s registered in the legal system of China it means that a product that’s carrying this symbol in China can do so with-

out being copied,” Harrison told Manufacturers’ Monthly.

“In the past numerous counterfeiters in China had copied an Australian product, and put an Australian made symbol on it.

“Now our logo is legally protected as a trademark in the Chinese legal system which means if a company abuses an Australian made product, it is not us trying to fight them from thousands of miles away.

“Instead a body in China, the Administration of Industry and Commerce (AIC) which is the equivalent to our ACCC, has the power to investigate and punish these trademark infringements.

“Now we can go back into China, and get the AIC to stop the counterfeiters through legislation.”

While Harrison admits it’s not going to stop all counterfeiters, he does state that “it’s a major step.”

The new registration covers several different classes of goods (classes 5, 20 and 29-33). This includes a wide range of products including pharmaceuticals, furniture, food and beverages.

An application for an eighth class of goods (class 25, which includes footwear and clothing) is still pending.

The formal registration of the AMAG logo in China follows its registration in the USA. Registration is also pending in Republic of Korea.

Further information regarding classes of goods can be found at http://xeno.ipaustralia.gov.au/ tmgoods.htm.

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Manufacturers’ Monthly NOVEMBER 2012 39

AustralianMANUFACTURING Icons of Australia Keeping Australian brands manufacturing in Australia during a downturn requires dedication. Cole Latimer writes turer to actually fabricate the mower chassis, which it then brings into the factory in batches.

The Sydney site has four assembly lines, where workers build the mowers which are then batched and palleted by automated processes.

“We have human assembly, but all the palleting and heavy lifting is automated,” Napoli told Manufacturers’ Monthly.

“People wouldn’t pay for waste, and by making operations lean we eliminate that waste,” Teske added.

Supply and demand

Victa uses a lean manufacturing process.

C

oke, Hoover, Kleenex, Lyrca, Kevlar, Spandex.

There is a point where a brand becomes so well respected and ubiquitous that it becomes short hand for the product itself.

In Australia, when it comes to mowers Victa is in the same league.

It has become an iconic Australian brand and is part of the history of Australia and Australian manufacturers starting out with a small idea and making it big.

And like many iconic Australian manufactured brands, such as Kraft or Arnotts, it is owned by an American firm.

And like these companies, which manufacture Vegemite and Arnotts biscuits, the American company, motor and engine manufacturer Briggs & Stratton - which acquired Victa in 2008, realised the importance of keeping an Australian

40 NOVEMBER 2012 Manufacturers’ Monthly

company manufacturing in Australia.

However as the manufacturing industry constricts both here and in the U.S., many Australian based companies have found it hard to keep operations going in the country and are finding it more attractive financially to shift manufacturing offshore due to lower costs and overheads.

As such a strong Australian brand, many thought the manufacturing had to stay in Australia; Briggs & Stratton thought so too.

Speaking to Briggs & Stratton president Todd Teske, he told Manufacturers’ Monthly “it is a strong Australian brand, and considering what that means to consumers it is important that we keep it Australian, and that we keep its reputation So how do you keep an Australian manufacturer in country?

Going lean One of the major factors in keeping the operations running, in what has been a downturn for manufacturing across the board, has been keeping operations lean.

“For the last two to three years we have been heavy into lean manufacturing, which keeps us globally competitive,” Briggs & Stratton national operations manager Mario Napoli told Manufacturers’ Monthly.

Some may see this as propitious timing, for it to cut back waste as the industry really started to suffer off the back of the global financial crisis and the mining boom.

However “what really drove the push towards lean manufacturing [rather than outside influences] was the need to remain cost competitive against imports”.

It has also cut down on costs by utilising another small local manfa-

By going lean it has also been able to more effectively respond to demand.

Victa “implemented a flexline process, which can grow or shrink depending on seasonal demand, as in the summer and spring months there is a much higher demand for the product compared to winter,” Napoli said.

“This means that from a base of between 35 and 40 employees we are able to almost double the numbers of workers at the manufacturing plant, depending on this seasonal and product demand.

“Also, as the local manufacturer supplies the chassis we can easily increase or decrease our stock on demand.”

Importantly, it also paints the chassis on site.

“By painting the chassis as we need them it reduces painted stock inventory and means we can focus on making different products and react to demand as we can choose the product much later in the process, which cuts down time and make us more agile.”

Teske explained that “at the end of the day, it gives us the ability to react to the market, which is important as the lawn market goes down for three to four months of the year, and so rather than having to ship out in anticipation we can respond to manmonthly.com.au

It utilises double palleting to maximise space.

local demand quickly as we are on the ground here”.

He went on to say that “we’ve been doing lean before it was cool, and now that we’ve done it on the shop floor we will now be taking it to the back office using ERP and SAP”.

Multi-skilling the workforce has been crucial in maintaining growth.

“It’s very important to us to have workers be able to apply their skills right across the site, so we are looking at multi-skilling right across the manufacturing plant and through warehousing.”

Napoli added that “we are also aiming to formally certify workers for their work areas”.

Victa also uses a cross functional team to discuss what is happening in each section of its site and to gain a better understanding of the multiple issues affecting different areas of the

workplace and “to be more responsive to demand”.

Storage and distribution The issue of warehousing and maximising space was also a key concern.

“We recently just finished a project to maximise our storage at warehouse, and maximise volume.

“We used the Six Sigma strategy to solve this warehousing issue and to improve space; we ended up improving our capacity by 30 per cent, which also aided us in reduving our outside storage costs.

Victa completed this task last year and has now shifted to replicating it for its outside storage.

It also has implemented double palleting to utilise its pallet space, due to the size of its boxes.

Victa explained that a major part

Painting late in the process allows for more agility.

of its distribution and quality assurance chain is serial tracking.

It uses individual serial numbers and barcodes on all of its manufactured products from the start to the finish of the process “which means we can track any issues by the individual units, so we can directly link it to either a problem with the product batch or the manufacturing”.

Australian standards While the majority of its mower and brush cutter manufacturing occurs at the Sydney site, with larger rideon mowers built in the U.S. and shipped to Australia, its Melbourne site focuses more on the Briggs and Stratton side of the operation “selling engines to OEMs and to dealers”.

While some equipment comes from the U.S., it is tested to withstand Australian conditions.

“There is a test lab to check quality and for imports, we make sure that it can operate in Australian conditions, and complies with Australian standards.

“We carry out both safety and life/ durability tests,” Napoli told Manufacturers’ Monthly.

The future Lean manufacturing, remaining agile, and being able to respond quickly to demand have paid off for the company.

In February it produced its 8th million mower and this year celebrates its 60th anniversary.

With the support of its American backer, Briggs & Stratton, which have been in the country themselves since 1986, it will be able to stay in Australia, and be one of those iconic brands that can weather the storm.

sales

manmonthly.com.au

Manufacturers’ Monthly NOVEMBER 2012 41

Automation& ROBOTICS

Understanding in real time New software is helping keep machinery maintenance up to speed, Andrew Duffy writes.

A

key pillar in moving toward building automated operations isnâ&#x20AC;&#x2122;t just introducing new equipment.

It is also keeping track of this machinery and finding new ways to manage wear and tear.

Focusing the bulk of their efforts on this front into a single product, developers at Honeywell have put together their Mobile Equipment Monitor (MEM) software to help monitor the performance of equipment in real time.

Honeywell officials told

Manufacturersâ&#x20AC;&#x2122; Monthly the focus for the software was helping companies get a live insight into the performance of their machinery.

They said while there were already a number of products in place to make such meaÂŹsurements, the retrieval of the data was often too slow to help influence a change in practice. â&#x20AC;&#x153;One of the major disadvantages of working in the mobile world is getting that data back to a second system for everyone to look at,â&#x20AC;? they said.

â&#x20AC;&#x153;Typically itâ&#x20AC;&#x2122;s done ad hoc, so if something breaks theyâ&#x20AC;&#x2122;ll get it in and fix it, or if something comes in for maintenance, theyâ&#x20AC;&#x2122;ll do that analysis of what went wrong after the fact. â&#x20AC;&#x153;What weâ&#x20AC;&#x2122;re doing now is getting that data in real time.â&#x20AC;?

With the MEM Honeywell said companies were able to gather performance statistics on their equipment as it happened.

One of the key benefits of such analysis is having the ability to push back scheduled maintenance if the equipment does not require it.

Conversely companies can bring machinery in immediately if something needs fixing. â&#x20AC;&#x153;When something does go wrong you can pick up on it straight away so youâ&#x20AC;&#x2122;re not waiting that extended period for it to come in,â&#x20AC;? Honeywell officials said.

The MEM software collects its data from existing sensors on equipment and uses a wireless connection to send analytics back in real time.

Using the data both operators and other staff at the factory can see at any time whether equipment is doing fine or whether itâ&#x20AC;&#x2122;s on the verge of failure.

On board a lot of machinery there is â&#x20AC;&#x153;already inbuilt sensors collecting information, so weâ&#x20AC;&#x2122;ll be connecting to that and getting it off in real time rather than waiting for it to be downloaded manually,â&#x20AC;? Honeywell said.

Being able to make maintenance decisions with more accuracy means companies can choose the right point to take equipment offline.

All of this will mean less maintenance, less equipment replacement, and less wasted time doing check-ups that arenâ&#x20AC;&#x2122;t needed. â&#x20AC;&#x153;Really where itâ&#x20AC;&#x2122;s heading towards is predictive analysis, so you can stop things from breaking down and extend the equipment life,â&#x20AC;?

Honeywell said. â&#x20AC;&#x153;Typically workers will bring equipment in, for example, every 1,000 hours for maintenance regardless of whether itâ&#x20AC;&#x2122;s broken or not. â&#x20AC;&#x153;Weâ&#x20AC;&#x2122;re looking at really extending that with this software so instead of waiting 1,000 hours you might be able to do 1,500 or 2,000.â&#x20AC;?

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Robotic steel welding KRANENDONK has released what it describes as a new level of welding automation: The Beam Assembly Line.

The robotic assembly line for beam profiles assembles, tacks and welds attachments to steel beams, with high accuracy (within 1 millimetre) in assembling.

The automated system comprises two ABB robots and ESAB welding equipment, and aims to increase a steel manufacturerâ&#x20AC;&#x2122;s productivity and the quality of their product.

Kranendonk will introduce the system on November 8 at a global event for the steel construction industry.

Kranendonk www.kranendonk.com/en

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Electro pneumatic positioners ACRODYNE has launched the new YT-3400 series of Exd llc T5/T6 IECes certified, flameproof electro pneumatic positioners from YTC. The positioners have push button operated, easy to read LCD displays and an auto calibration function for quick and easy commissioning.

An auto/manual switch activates the provision of air directly to the actuator, which allows for complete or partial stroking of the valve.

The positioners are housed in IP66 weatherproof rated diecast aluminium, and they come equipped with PID and alarm functions as standard.

Optional extras include digitally enhanced 4-20 mA HART smart instrument communication, 4-20mA transmitter and limit switches, NAMUR compliant Linear or Rotaty options and actuator mounting kits.

Acrodyne 1300 026 316 www.arcodyne.com.au

Software for CNC and plasma cutters

Laser marking

ADVANCED Robotic Technology has recently released Toolshop, version 2.0 of its toolpathing and nesting software.

The automated software is Windows-based, and it allows users to draw and import components using standard CAD tools.

They can apply machining toolpaths and nest into material, ready for output to their CNC router or plasma cutter.

According to Advanced Robotic Technology it can be used in conjunction with existing processes, and manages data including CAD drawings, parts libraries and customer data.

DATALOGIC Automation has released the Arex range of fibre laser marking systems. Suitable for the automotive and electronic industries, the systems use a very small marking head footprint and are designed to simplify design for system integrators. They can also assist with mechanical installations ranging from stand alone marking stations to fully automated working centres in production lines.

The systems have a compact marking head that is designed for precision work, a new embedded platform and a dedicated encoder.

Datalogic Automation 1300 554 991 www.automation.datalogic.com

manmonthly.com.au

The company added that the extended material database can be also hosted on a central server, which means that multiple users can obtain up-to-date stock level information at the same time.

It also features a remote material library for the entry of sheet and plate stock levels, Advanced Robotic Technology says.

The post processor is suitable for different machines, brands and processes including plasma cutters, lasers, water jets and routers.

Advanced Robotic Technology 1300 565 528 www.advancedrobotic.com

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Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2012 43

MaterialsHANDLING tion, providing custom solutions and branching into services, rather than simply competing on cost, has helped the company remain viable.

“Not only can we provide a designed materials handling solution and then build it, we’re also providing heat treatment and pressing services for other companies that may need those resources or services for their own work and for their own design.”

McKenzie started his career as a trainee metallurgist and has been at Loadarm for 35 years, first working with materials, before moving into sales and then managerial roles. He has seen the small company (employing “less than 20” people) gain more business from its services treating metal and components for customers, as well as in creating custom-made innovations for various industries.

“Because of our processes we’ve developed over many, many years required to produce these parts – for

Taking out the guess work Research,innovation, and reinvention has kept a small manufacturer with the times.

N

ow in its 50th year under the same name, Loadarm has remained small but expanded well beyond its original brief, as a manufacturer of forkarms “for the then-new forklift industry”.

“In that time we’ve progressed to other materials handling equipment, mechanical and hydraulics attachments that are also placed on forklift trucks and other industrial trucks, for example loaders in the construction industry or underground mining

equipment,” Bruce McKenzie, owner and managing director, said.

“We’ve probably had to reinvent ourselves, where we’d seen a change from standard product to more specialised products… whereas traditionally it was just manufacturing and selling standard produced products.”

McKenzie noted that the last decade-plus has seen an increase in availability of cheaper parts from overseas competitors, and innova-

example the pressing capacity – they also lend themselves to heavy industries requiring that sort of service or capacity,” said McKenzie.

“We’re growing our design and engineering department, where we’re providing design solutions, as well as manufacturing that solution with our existing resources. “ And I think we’ll be seeing our growth more in that same path, where we can provide a design solution for someone, whether it’s in a

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brick yard or a stone quarry or an underground mine, that’s where we see our future, I think.”

In terms of developing new solutions, Loadarm is looking to innovate in the brickyard and beyond.

McKenzie mentions R&D to make lifting a little less of a guess.

“We’re developing hydraulic lifting components for the brick industry, and looking at how to improve whatever else is out on the market right now, and give the company or particularly the forklift driver a bit more visibility and awareness of what they’re doing when they’re moving around,” he said, adding that Loadarm is also trying to tweak an onboard weight measurement device for fork operators.

“There are certainly devices on the market now, and we’re trying to give the customer something a little bit different and with a few added advantages.

“We’ve tested one prototype, which has worked reasonably well but we don’t really believe it will be sufficiently different to what’s on the market to really provide an advantage to the customer,” he told Manufacturers Monthly.

“But we’re tweaking that with some other concepts that we have.

“At the moment we’re modelling them on a computer system, before we build them and test them in the workplace here.

“We want to see what our stress analysis comes up with and what the computer modelling results provide first, he said.

“So I think we’ve probably got another six to 12 months to go before we’ll be satisfied.”

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MaterialsHANDLING

Precise picking A new picking solution is allowing for more specific ordering as well as warehouse expansion.

W

ith Australia’s food and beverage manufacturing sector set to grow, the need for shorter delivery times is increasing.

Withi this in mind Dematic has developed a new multishuttle system for the industry, that is an innovative split-case, goods-to-person (GTP) order picking machine, which has been delivering big improvements for Swiss meat products manufacturer, Bigler AG. An increasing range of products, growing customer demand for smaller order sizes, shorter delivery times, and the need to optimise personnel and storage costs, have been key drivers in the design of Bigler AG’s new production facility at its existing Büren an der Aare site, in Switzerland.

“Half of our customers are small to medium-sized enterprises and food retail outlets who want minimum quantity orders delivered up to three

Designed for short term storage and picking.

times a week,” Markus Bigler, owner and managing director of the longstanding Swiss firm said.

Bigler stated “we needed an intel-

ligent solution for short-term storage and efficient single item order picking. This presented the most innovative solution based on a four-

aisle integrated Multishuttle system supporting goods-to-person (GTP) order picking.”

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46 NOVEMBER 2012 Manufacturers’ Monthly

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Tuesday 7th - Friday 10th May 9.00 am until 5.00 pm Sydney Showground, Sydney Olympic Park

Its 32 shuttles on nine levels perform 1600 movements an hour.

Planning for future growth The 7000 plus container capacity Multishuttle system and building have been designed so that a fifth aisle can be incorporated at a later stage without any major construction work. The smart design can allow the installation of a mezzanine floor above the GTP order picking stations to create a second warehouse level in the building, providing space for an additional Multishuttle system housing up to a further 6600 containers.

The space-efficient Multishuttle’s flexible configuration options led to it being housed in the building’s basement, enabling it to be maintained at a considerably lower temperature than would have been possible in the order picking area.

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System operation A total of 32 shuttles on nine levels can perform up to 1,600 inward and outward goods movements every hour.

Items have to be stored as evenly as possible across all aisles, as it helps speed put-away and retrieval and guarantees availability, even if one of the aisles is unavailable for any reason.

Order processing is managed by Bigler’s ERP system, which interfaces with Dematic’s material flow control software.

According to Bigler “due to the requirements of the best-before date (BBD), and outward movements in accordance with the first-in/first-out (FIFO) principle, reliable product control was essential. A high level of systems expertise was required to interface the various elements of the solution.”

Containers retrieved by the Multishuttles were transferred to integrated lifts at the end of the aisles. The lifts interface with two conveyor loops, an upper loop connected to four automatic workstations and a lower loop feeding three automatic and three manual workstations.

Multifunction Multishuttle The conveyor loops can be used to buffer and sequence the high volume of goods for order picking, with the containers supplied via a buffer conveyor in front of the workstations. Picking is directed via screens for optimum accuracy.

Goods can be picked, weighed and labelled according to customer specifications into order containers, with the product containers returning to the Multishuttle store.

In the same way, pre-picked, full order containers can be transported back into the warehouse via a separate conveyor and stored temporarily, prior to despatch.

A better solution Biger stated that “compared to the conventional ASRS in our other plant, this solution is considerably more efficient for individual item order picking.”

He went on to say that “we process around 1000 order lines per hour, and have the potential to increase this up to 1800 per hour.

“Problem-free implementation and a commissioning process with no notable start-up difficulties have shown we made the correct decision.

“We are now well equipped to meet changing requirements.” manmonthly.com.au

Slider beds Spillage can be a common occurrence in load zones because of the nature of material transfer. Now available from Flexco is the new range of EZ Slider Beds.

Manufactured and assembled in Australia, the Slider Beds are engineered to provide containment around load zones while minimising drag on the conveyor belt. EZ Slider Beds feature hard-wearing CoreTech rolls and long-lasting UHMW slider bars.

The UHMW slider bars effectively seal the load zones, when combined with Flexco skirting systems.

CoreTech nylon rolls reduce drag on the conveyor belt.

Slider Bars are easy to service, with troughs lowered for access to the bars and bolts.

The EZ Slider Beds can be set at three troughing angles: 20 degrees; 35 degrees; and 45 degrees; and can accommodate belts from 600 to 1800 mm in width that will work with belt speeds of up to 5 m/sec and will take impact energy of up to 25kg-m.

With these Slider Beds users can

Bulk bag pallets

Work at speeds of up to 5m/sec.

seal load zones in both impact and non-impact areas.

Flexco www.flexco.com

Bulk Handling Australia (BHA) has unveil a new plastic export pallet, that is described as a cost-effective replacement for wooden export pallets for bulk bags. The BHA Bag Pallet is designed to move polypropylene bulk bags (Flexible Intermediate Bulk Containers or FIBCs), and has been patented internationally. According to BHA, the 4.1 kilogram pallets weigh about 10 to 11 kilograms less than current export wooden pallets, which increases a 40 ft container payload by a potential 400 kilograms. The pallets also offered space savings with 11 of the stacked packets measuring 280 mm in height. The dimensions are the same as a wooden export pallet: 1100 mm in width and length. The new pallets have a three tonne Safe Working Load. Made from the same HDPE material as wheelie bins, the pallets can be used with filling systems that complete bag filling on the pallet, as well as those where the bulk bag is filled and then placed on the pallet.

Bulk Handling Australia Group www.bha.com.au

Bulk bag loosener Flexicon has released a new hydraulically actuated, variable height turntable for automated in-frame bag rotation Dubbed the Block Buster bulk bag conditioner, it uses two hydraulic rams with specially contoured end plateS to press the opposing sides and corners of transportable bulk bags, loosening material that has solidified during storage and shipment.

By doing so it enables bulk bag unloaders to more effectively discharge the material through bag spouts.

It also comes with a cantilevered I-beam with motorised hoist and trolley, that allows for the loading and unloading of bulk bags without the need for a forklift.

According to the company, the system controller and hydraulic pump can be mounted on the exterior of the safety cage or remotely.

The hydraulically actuated, variable height turntable and conditioner is fully enclosed on all four sides, to increase operator safety, and includes full-height doors that are interlocked to disallow operation of the system when the doors are open. manmonthly.com.au

Flexicon says that the conditioner is recommended for bulk bags containing hygroscopic chemicals, certain spice blends, heat-sensitive products, and other materials prone to solidifying to the point at which pneumatically-actuated flow promotion accessories integral to bulk bag dischargers are inefficient or completely ineffective.

Flexicon 130 363 942 www.flexicon.com.au

Tel: 03 9870 3743 Mob: 0413 574 924 Fax: 03 8802 1343

Email: nppm@optusnet.com.au Web: www.nppm.biz/products2

Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2012 49

Food& BEVERAGE MANUFACTURING

Private labels are harming manufacturers.

Food for thought Despite pessimism and gloom in the market, the food and beverage manufacturing sector has a bright future. Brent Balinski reports.

A

ustralia is well into deficit when it comes to its food processing trade.

The Australian Food and Grocery Council’s annual State of The Industry report (using ABS figures and KPMG’s research) released last month showed we imported a net $2.8 billion worth of food and beverage, grocery and fresh produce.

More worryingly, total industry output dipped 4.5 per cent for 201011 and its number of employees went down by 2.2 per cent.

“The sector’s growth, competitiveness and ability to create jobs are under threat,” Gary Dawson, the 50 NOVEMBER 2012 Manufacturers’ Monthly

AFGC CEO, said when the report was released.

“The findings of State of the Industry 2012 serve as a warning to policy makers at all levels of government that the Australian food and grocery manufacturing sector - Australia’s largest manufacturing sector - is facing an environment where input costs are rising on everything from commodities to labour to energy, and retail price deflation continues to cut margins, placing the sector under increasing pressure”.

Why are things in such an apparently bad way?

The high dollar – as has been the case with almost every segment of manufacturing – has presented the most problems.

Terry Davis, the CEO of Coca-Cola Amatil – the parent company of SPC Ardmona, Australia’s biggest fruit and vegetable processor – has said that supermarket private labels, the high dollar, and taxes were driving many in the industry out of business.

“We all know high labour costs are an issue,” he told a Rabobank agribusiness event, while pointing out the payroll taxes were a massive pain. “Tell me how a tax on employment fosters sustainability?”

Dan Tehan MP, a federal Liberal backbencher, is another outspoken critic of the taxes on food manufacturers.

Tehan, the member for Wannon and a former adviser to federal Nationals leader Mark Vaile, believes that the carbon tax risks sending industries such as diary overseas.

“In recent government policy, obviously the carbon tax harms our international competitiveness and the government has hung the food manufacturing sector out to dry,” Tehan told Manufacturers Monthly.

He compares it unfavourably to the European Union’s treatment of its food processors.

“The European Union not only gives its agricultural slash food processing sector subsidies, it also allocates them with free permits under their carbon tax.”

Tehan also believes that the National Food Plan, which is in the green paper stage and ended its consultation period on 30 September, will do nothing to address the problems food manufacturing faces.

“We’ve seen job losses in this area and yet the government hasn’t done anything to help what is a key part of the whole food chain, where you value add, add additional income, and employ people.

“At this stage it just seems to be a lot of motherhood statements.

And one would hope that it would address the tough issues that need to be addressed if we are to ensure the long-term future of food manufacturing in Australia.”

The food manufacturing industry’s malaise isn’t exactly news.

The AFGC and consultants AT Kearney released 2020: Industry at a Crossroads report a year ago, predicting 130,000 jobs in the sector would disappear by 2020 if nothing was done, and that 55 per cent of manufacturers were pessimistic about the future.

The SPC Mooroopna plant’s closure last year made big news.

The beginning of the year saw Heinz stop tomato sauce production, closing its Girgarre factory, which also had people talking about the decline of local food processing. As did the announcement that Kerry Ingredients would close the doors at manmonthly.com.au

its Altona factory. So what is behind the industryâ&#x20AC;&#x2122;s current woes?

Of course, exchange rates have hurt. Others have also pointed to the rise of private label brands in supermarkets.

In-house supermarket products have been around for three decades or more, but has only recently become so popular.

IBIS World research published this year suggested up to a quarter of groceries were private labels.

Critics, such as the AFGC, say that private labels are getting in the way of Australian products getting to consumers, robbing Australian makers of shelf space, being increasingly produced offshore, and forcing them to whittle their margins away to compete on price. â&#x20AC;&#x153;The Australian food processing sector is being destroyed,â&#x20AC;? stated David McKinna, a food industry consultant and principal of McKinna et al. â&#x20AC;&#x153;Australia is going the same way as the United Kingdom and United States where private labels are up

Lack of support and a high dollar is crippling the industry.

to 70 per cent of the supermarket range,â&#x20AC;? he said.

For all the pessimism, are there many opportunities for Australian food and beverage manufacturers?

Certainly, with the Asian Century singled out as a big potential boost

for future sales. Wine exporters are seeing excellent improvements in sales to China, the fastest growing market for Australian wine. The growing Asian middle class was singled out as a huge opportunity for Australian processed food in the

recent Prime Ministerâ&#x20AC;&#x2122;s manufacturing task force report, describing it as â&#x20AC;&#x153;one of the few areas of manufacturing where high distance costs are outweighed by other factors, in this case Australiaâ&#x20AC;&#x2122;s natural resource advantageâ&#x20AC;?.

The task force report recommended initiatives like a Food Industry Innovation Hub to best identify what the marketâ&#x20AC;&#x2122;s marketing and taste needs might be. â&#x20AC;&#x153;Food is singled out, itâ&#x20AC;&#x2122;s something thatâ&#x20AC;&#x2122;s a comparative advantage in Australia,â&#x20AC;? Professor Roy Green, a member of the task force, told Manufacturersâ&#x20AC;&#x2122; Monthly. â&#x20AC;&#x153;And food manufacturing is an important value adding element of food production.â&#x20AC;?

Our biggest manufacturing segment has a huge potential to do well, despite the current difficulties around cheap imports, input costs and taxes, and the purchasing habits of supermarkets. â&#x20AC;&#x153;If we canâ&#x20AC;&#x2122;t do that, well, what can we do? Thatâ&#x20AC;&#x2122;s a kind of basic product that we really have to be successful in,â&#x20AC;? said Green.

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Manufacturersâ&#x20AC;&#x2122; Monthly NOVEMBER 2012 51

ManufacturingFUTURE Turning the downturn around A recent manufacturing conference in Sydney delved into how to help manufacturing out of this current slump. Vicky Validakis reports.

Despite many obstacles, manufacturing can still grow.

T

he debate around how to help the manufacturing industry in Australia is increasingly turning to the use of low-carbon, resource efficient, and unconventional industrial practices as a way forward for sector.

Innovation is the new buzz-word when discussing how to pull struggling companies out of the red.

The most common advice manufacturers are receiving is to innovate and the next is to go green and this was the message at the recent Green Growth/ Advanced Manufacturing conference held in Sydney in September, where leaders from the manufacturing industry gathered to discuss the state of the industry, innovation and green policies.

Andrew Stoner, deputy premier

52 NOVEMBER 2012 Manufacturers’ Monthly

of NSW and minister for trade and investment opened the conference by pointing to the ways in which manufacturing in NSW could move forward, highlighting the need for companies to grow and adapt to what he called “a globalised economy where labour costs in competitive markets are a fraction of ours”.

“Our future international success can only by achieved by moving up the value chain, boosting our productivity, developing expertise in core capabilities, better understanding the needs of customers and end users and creating valuable IP with design-led innovation, “ he told the conference.

The underlying message is that by using and producing sustainable products, investing in R&D and by

moving into advanced manufacturing, companies will be able to stay competitive in a world where the dollar is only getting stronger and more jobs are being moved offshore.

At the same conference, Roy Green, dean of the Business School at UTS and a member of the Prime Minister’s Taskforce on Manufacturing, highlighted three main recommendations in the report as being the most important in dealing with the troubled sector. Green stated that ‘Smarter Networks, Smarter SMEs and Smarter Workplaces’ were all issues which needed urgent attention.

Green said that while many programs existed within the industry, greater collaboration and prioritisation was needed.

“There are many programs, but without any sense of where the priorities lie, how do we identify where our capabilities exist and how do we capitalise on these most effectively with the resources we’ve got?”

He also suggested that new business models are needed within the industry which will help to incorporate innovation and design at all levels. Green believes this type of change in the discourse surrounding how manufacturing has traditionally been approached is what will initiate change and growth within the struggling sector.

“Non-technological models of innovation are also important. New business models, design integration, systems integration, high performance work and management practices, also become part of our competitive advantage.” he said.

Michael Smith, a research fellow at ANU, used his speech to call for a reform agenda around the ways in which goods are manufactured.

He pointed to the humble chip fryer as an example of how simple, traditional machinery could be tweaked to reduced energy consumption by 70 per cent.

Smith also stated that the ‘inertia’ surrounding the industry over how things had ‘traditionally’ been done, needed serious reform. Smith said that innovation needed to happen at all levels so that the industry can reach its full competitive advantage.

Smith believes that cost-effective strategies for climate change will ensure businesses remained viable moving forward stating that energy savings could range from fifty to eighty per cent if green changes were implemented.

But with many companies struggling to keep their doors open, how are they expected to implement innovation design or go green and, is it going to solve their problems?

With structural changes going on in factories around Australia, businesses are trying to reduce the hit on their bottom line. manmonthly.com.au

To then suggest that these companies should be using capital they don’t have to invest in going green leaves the question open as to where they are going to find the money to do so.

When Manufacturer’s Monthly asked a delegate at the conference to suggest where companies would secure the capital for these investments, the answer came in the form of a bank loan and that companies needed to re-adjust their business models so as to present a strong case to lenders which would then enable them to gain the capital needed for green reform.

While there is no doubt that innovative products, understanding where you sit in the global supply chain and R&D are all ways in which companies can stay abreast of the trends, asking a factory to go green with little help, no tax offsets or any real evidence that this will improve the situation is being seen by many as more theories which sound good but which have little chance of becoming a reality for an industry

manmonthly.com.au

The conference fell short for SMEs that is already doing it tough.

And while it can be argued that going green will help companies with spiralling electricity costs and other costs involving production, it is going to take some convincing.

But with the Performance of Manufacturing index falling again to 44 points, well below the contraction mark of 50, confidence in the

sector is at an all-time low and many companies believe now is not the time to be talking about the push for green but that real change needs to actioned on the factory floor.

August saw a decline in forward orders which Innes Willcox said “is always the real underlying sign of where the sector believes it’s going”.

While the conference had some

great suggestions and examples of companies going green and creating sustainable practices, the mark was missed on what the everyday factory owner could do. Examples of multi-national companies like DOW Chemical Company, Cochlear and Breville, and the steps they have taken towards innovation, R&D and green initiatives are all positive, and while smaller companies may be able to learn and develop from these examples, we can’t expect this to happen without a little financial help or assistance.

With the government set to make a decision on which of the 48 recommendations it will implement from the findings of the Prime Minister’s Taskforce into Manufacturing, it will be paramount to the industry’s future that real change and practical policies which can be taken to the factory floor are considered.

Because while most people would tell you that innovation, sustainability and going green are all the important, the sad reality is that most just do not have the money or resources.

Manufacturers’ Monthly NOVEMBER 2012 53

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