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MAY 2016

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IT @ MM Getting more from your data

2016 Endeavour Awards A huge success for local manufacturers

Van, truck and ute review The latest in commercial transport

D I R E C T

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manmonthly.com.au Managing Director: John Murphy Managing Editor: Branko Miletic Ph: (02) 8484 0976 Fax: (02) 8484 0722 branko.miletic@primecreative.com.au Assistant Editor: Brent Balinski Ph: (02) 8484 0680 Fax: (02) 8484 0722 brent.balinski@primecreative.com.au Editor-at-Large: Alan Johnson Ph: (02) 8484 0725 alan.johnson@primecreative.com.au Sales/Advertising: Matthew Nutt Ph: (02) 8484 0614 matt.nutt@primecreative.com.au Production Coordinator: Ziba Mahabat Ph: (02) 8484 0625 ziba.mahabat@primecreative.com.au Subscriptions Published 11 times a year Subscriptions $140.00 per annum (inc GST) Overseas prices apply Ph: (03) 9690 8766 Copyright Manufacturers’ Monthly is owned by Prime Creative Media and published by John Murphy. All material in Manufacturers’ Monthly is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information, Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published. The opinions expressed in Australian Mining are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated. © Copyright Prime Creative Media, 2016 Articles All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.

Inside 6 8 10 24 26 28 30 32 34 38 40 42 44 46 48 50

Editors Comment Industry Comment IT@MM Safety Endeavour Awards Review Product Identification Change Management HR & Training Trucks, Utes & Vans Review Transport Management Systems Additive Manufacturing Innovation Steel Making Supply Chain & Logistics What’s New Review

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New technology

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Print Post Approved PP100007882

IT @ MM Getting more from your data

2016 Endeavour Awards A huge success for local manufacturers

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MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

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Comment

BRANKO MILETIC – Managing Editor

Endeavour Awards finally reach their home port

UCH like Captain Cook’s HMS Endeavour, which was recently found at the bottom of a US harbour, the Endeavour Awards too have finally found a solid resting place. However, unlike the famed ship that delivered the plucky Welsh captain to Australian shores, the Endeavour Awards are not in some decrepit state of decay or disrepair; quite on the contrary - they are in fact thriving in more ways than one. This was patently evident earlier this month when, under the auspices of Manufacturers’ Monthly, the 13th annual Endeavor Awards were held in Sydney to coincide with National Manufacturing Week. To say the awards were a resounding success would be both self-indulgent but also entirely correct. After many years of these awards hovering under the 200 mark in terms of guests, this year, we managed to get about 250 people to the awards night, almost too many for the function room to fit. Moreover, in terms of the actual entrants in all of the 12 categories, there were some real shining examples of world’s-best practice and innovation, so much so that one of the awards judges said to

me during the dinner that this years entries were to date the “hardest to judge due to the sheer depth and quality of the technology on offer.” In other words, a bumper year in terms of attendee numbers as well as quality of nominees. That should spell success in anyone’s book, but more so, it is a glittering example of where the wider manufacturing industry in Australia sits at this present moment. While the naysayers and doom and gloom merchants of the mainstream press continue to talk manufacturing down and predict the end of

our manufacturing sector as we know it, what I saw was an industry in full transition to bigger and better things. I saw a sector that has happily grasped the multi-headed challenges of digitalisation and technological disruption and not only hold its own, but has managed to thrive in too many ways to adequately describe here. Overall, the positivity and forward thinking of many of the companies that attended the Endeavour Awards was worthy of a separate award in itself. Sure it remains a truism that manufacturing in Australia has a raft of issues to deal with, but most of these are a factor of the changes that are occurring globally in manufacturing rather than symptoms of it. So to all of the individual category winners as well as the overall winner, the Manufacturer of the Year, Admedus, I extend my heartfelt congratulations on a job well done and hope that your wins auger well for your future in the exciting new world that is Australian manufacturing. branko.miletic@primecreative.com.au

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From sensors to sensor intelligence: Brilliant ideas and exceptional pioneering spirit have produced automation technology which has changed the world. The work started by Dr. Erwin Sick 70 years ago, is being continued by over 7,400 employees all over the world as they embark on a new future with Industry 4.0. With our products and ideas, we protect both people and the environment. We are helping to make processes more efďŹ cient and to preserve resources. For us, this is a reason to celebrate. www.sick.com.au

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Comment Steeling ourselves for jobs and growth By Senator Kim Carr

JOBS and growth was the slogan for the recent federal budget. To build jobs and growth for the 21st century, we need to diversify Australia’s economic base beyond the investment phase of the mining boom. But the Federal Budget and the Coalition’s rhetoric fail to acknowledge the importance of manufacturing in this equation. There’s nothing about sustaining our advanced manufacturing capabilities. You’d be challenged to even find a mention of the word in the budget papers. Yet it is advanced manufacturing – through links with science, research, education, services, input supply and other sectors – that fosters quality jobs and sustains a diversified economy. And advanced manufacturing cannot just be built up overnight, because it relies on long term investment by industry and government in partnership, and a wellspring of existing industrial capabilities. Capabilities like steel production, which is crucial to our ability to remain an advanced economy, because it provides the raw material that makes other forms of manufacturing possible.

We cannot afford to let Australia’s steel industry die. No other advanced economy has allowed that to happen, because it is understood everywhere that steelmaking is strategically important. The Government claims that the panacea to the steel crisis are shipbuilding contracts, despite saying just a few weeks ago that taxpayers would be ‘fleeced’ if we used Australian steel in government contracts. However these projects won’t come to fruition for a number of years and even if all the steel is Australian made, it isn’t enough to steel to sustain the entire industry. Steelmaking, like manufacturing, is absent from the Government’s so-called ten year economic plan. Presumably the Turnbull Government thinks we can just buy it all off the shelf from overseas? That attitude is seriously misguided. The world is already awash with cheap, substandard steel dumped on to the market by high-volume producers in China and elsewhere. The Senate inquiry into the future of the steel industry has heard expert evidence about the increasing use of imported steel that does

not comply with Australian standards. This is making Australian bridges, buildings and other structures less safe, while putting the livelihoods of Australia’s steelmakers at risk. So the question for Labor is not whether Australia should be making its own steel. Of course we must. The question is what policies will help the industry survive and flourish. Labor has a six-point plan to secure the future of steelmaking in Australia that would: • ensure that steel used in federally funded projects complies with Australian standards; • ensure that anti-dumping regulators have the necessary powers to do their job effectively; • create a National Steel Supplier Advocate; • seek to maximise the use of locally produced steel in federally funded projects, with associated reporting requirements; • halve the thresholds for Australian Industry Participation Plans; and • double the funding for the Australian Industry Participation Authority. A Shorten Labor Government will start delivering this plan within 100

days by establishing a Metals Manufacturing Innovation Council with representatives of industry, unions and governments. In 2013, the South Australian Government appointed an Industry Participation Advocate to help negotiate contracts that maximise the use of local content in public projects. This intervention saw the proportion of contracts from state government procurement going to local businesses rise from 51 per cent in 2012-13 to 91 per cent in 2014-15. And so it could be nationally for the steel industry, if it acquires an advocate backed up by the other measures Labor has proposed, like compliance with Australian standards. If we want Australia to be a country that makes things, a country that generates the high-skill, high-wage jobs of the future, we need advanced manufacturing and we need a steel industry. That is something we should all keep in mind as we head to the next election. [Senator Kim Carr is the Shadow Minister for Higher Education, Research, Innovation and Industry]

9 ways to help Australian manufacturing grow By Innes Willox

HIS year’s Federal Budget was an opportunity for the Government to put growth policies in place with a view well beyond the impending 2 July election. So, from the perspective of business, what was delivered? In short, there was a lot to like and a lot to welcome. The proposed company tax cuts, set to be phased in over the next decade – reaching a rate of 25 per cent for all companies by 2026-27 – will provide an important boost to the capacity of businesses to invest and create jobs and will improve Australia’s competitiveness internationally.

8 MAY 2016 Manufacturers’ Monthly

According to the Head of the Treasury, the $50 billion investment that these tax cuts represent will drive $160 billion into the economy over 10 years. That’s a pretty good return on investment. Extending eligibility to small business tax measures to companies with turnovers of up to $10 million a year will provide a shot in the arm for up to 60,000 SMEs and for the economy from 1 July this year. The ongoing commitment to innovation is also encouraging. One of the big positives of the budget was something it didn’t do and that was play around with the R&D tax incen-

tive – a crucial step in rebuilding business confidence in this important program. The biggest disappointment was the deep cut in funding for the Industry Skills Fund. This is a setback for improving workforce capability at a time of major changes in workplaces and the workforce. That said, the Government’s renewed efforts in higher education and its commitment to consultation with the higher education sector and with business are to be applauded. So now, with the federal election officially underway, we will be urging all parties to adopt further

policies to deliver the diverse and dynamic economy needed to lift living standards and underwrite sustainable growth. Ai Group maintains a nonpartisan approach in any political contest, but we’ve identified nine policy priorities that should cross the political divide: 1. Taxation Reform: The challenge is to design and build community support for a package of measures that lifts the efficiency of taxation and reduces its costs, while supporting the nation’s revenue needs and redistribution objectives. Ai Group’s manmonthly.com.au

Friction Torque Test Rig Supervise both evolutions of friction torque and equilibrium temperature in the high-speed rolling bearings. Testing parameter: Torque, Rotational Angle, Temperature and Speed leading tax reform priority continues to be a legislated and phased reduction in the rate of company tax from its present uncompetitive level of 30 per cent. 2. Budget Sustainability: A convincing path must be maintained for the return of the federal budget to a position of sustainability and strength. 3. Developing the Skills of the Current and future workforce, including by: Establishing industry-led arrangements for national VET governance, including for Australian Apprenticeships; Re-designing a sustainable FEEHELP scheme, including an overhaul of VET FEE-HELP parameters; Reforming the apprenticeship system, to focus on lifting both commencements and completions and including higher level qualifications and a wider range of industries; Developing and effectively resourcing a national STEM skills strategy in conjunction with industry to support the National Innovation and Science Agenda. 4. Workplace Relations: Ai Group urges all parties to implement the many worthwhile recommendations of the recent Productivity Commission inquiry into the Workplace Relations Framework and the Heydon Royal Commission to make real progress in modernising our workplace relations arrangements and practices. 5. Innovation: All parties need to foster improved business-research collaboration; encourage innovation through government procurement; encourage more organisations to look for new opportunities; and to better manmonthly.com.au

equip them to realise and commercialise those opportunities. 6. Industry Policy: Improving Australia’s business capabilities should remain a major policy priority, with a focus on Australia’s various trade agreements; investing in the Entrepreneurs’ Programme for small and medium-sized businesses; raising awareness of digital threats and opportunities; and in leveraging the benefits of enhanced domestic capabilities from defence industry investment. 7. Infrastructure: While important steps have been made, including in recent budget statements, there is still some way to go in building confidence in the integrity of decision-making over infrastructure investment. 8. Climate and Energy: We need to ensure Australia’s energy markets work efficiently to deliver reliable supplies of competitively-priced energy for domestic industries and households. Ai Group also supports progressing Australia’s approaches to climate policy so that near and longer-term targets can be met at least cost and in ways that ensure investment certainty and competitiveness. 9. Immigration: While aggregate unemployment and underemployment levels remain high, distinct areas of skill shortages are emerging in growing sectors and regions of the economy that require a suite of flexible, temporary migration programs linked closely to the current skills needs of our economy. [Innes Willox is CEO of the Australian Industry Group]

ReferenceMate Handheld Shaker Portable vibration reference source enables users in the field to easily verify sensor performance and the integrity of the cabling between the sensor and the online system. Build-in reference accelerometer assures that a 1g test level is maintained for sensors weighing up to 250 grams

Integration of Wireless Networks for Process Monitoring  Lower cabling costs  Automate production process  Improve equipment’s energy efficiency  Better knowledge on equipment availability  Optimize machine stock maintenance costs

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Enquiry@bestech.com.au Manufacturers’ Monthly MAY 2016 9

IT@MM Getting more from your data Business Intelligence systems are providing companies with valuable analytical information, as Alan Johnson reports.

USINESS Intelligent (BI) systems have been around for many years now, but for some reason many manufacturers have been reluctant to invest in this technology. For the uninitiated, BI can be described as “a set of techniques and tools for the acquisition and transformation of raw data into meaningful and useful information for business analysis purposes”. BI represents the tools and systems that play a key role in the strategic planning process within a corporation. The systems allow a company to gather, store, access and analyse corporate data to aid in decision-making Peter Stableford, Information Systems Manager with NGK Spark Plug Australia, recognised the benefits of BI several years ago when he invested in Board, an all-in-one CPM (Corporate Performance Management) and BI software package designed to make it easy to build business analytics and planning applications. NGK Spark Plug Australia, a wholly-owned subsidiary of the Japanese headquartered company NGK Spark Plug, imports and distributes automotive parts, sourced from its parent and other manufacturers. Its customers include both OEM and aftermarket automotive businesses. He explained that there had been no directive from Head Office on the decision. “We have a fair amount of autonomy here in Australia.” Stableford said prior to deploying Board, the company relied upon multiple

10 MAY 2016 Manufacturers’ Monthly

Excel spreadsheets, Access databases and Word documents to compile operational business intelligence reports sent to its parent company in Japan. “Staff had to spend nearly two days to generate hardcopy reports on its sales and distribution operations by cutting and pasting data from Excel spreadsheets and Access databases into Word, and then printing the results.” Requiring manual operations each month, he said the process was slow, tedious and inefficient. “It was a very messy process and prone to transcribing errors.” Stableford also realised there were many more things the company could learn from the data. “Especially as our salesforce needed analytical tools that could give them a more accurate picture of what the market changes among their distributor customers were from week to week. “So we approached Board International, and when we described our challenge to them, they were able to produce a prototype as a demonstration of what the product can do.” Stableford was surprised that when the prototype came back in just a couple of days, it was around 85 per cent of what they needed. “In those initial stages, it just needed some clarification and understanding from both sides of what people were referring to, and how we referred to our data. “But the implementation was very easy and took just

a couple of weeks, without any need for development time.” Being an out of the box product, Stableford said it was just a matter of designing the criteria around the parameters around what they needed to capture and how they needed it displayed. “We also had to accurately define the input criteria, such as which files were needed from our JD Edwards ERP system to go into the BI system. “Originally we took the approach where different business areas would come to us asking for certain information and invariably Board was able to deliver the statistics and the data in the way that we needed.” Later, the company started looking at the sales analytics, as well as invoice consolidation for shipping to its NZ customers. “We would use that to consolidate invoices and to apply insurance and shipping rates across multiple invoices for multiple customers. That’s all done in Board. “We just import the base invoicing data and from there we are able to enter in shipping fees and delivery costs etcetera and make allowances for zero value products such as merchandise products and catalogues.” Stableford explained that customs still need a shipping value for these products. “At the end BI software package delivers us the printed documentation; invoice consolidation and shipping documents that we pass on to customs.

“That’s one of the more process driven activity we do with Board now. Stableford says the company uses it for calculating customer rebates, if and when needed, and as a budgeting tool, but instead of dollars it’s based on quantities. “Plus we use it for analysing replenishment levels. Not for reordering but to help us with our calculations to see what is moving and what’s not, and cyclical variations in demand.” Stableford explained that NGK Spark Plug Australia is essentially a distribution company, employing around 60 people Australia wide mainly in sales, warehousing and distribution. “We have a 25 users’ licence, that’s broken up with three development licences, a number of power users, and a number of light use licences.” While the company is presently on V 8.1, Stableford says they are looking to move to V 10 in the near future. Interestingly, he said upgrading has been painless in the past and is expecting no difference next time. “Unlike our last ERP upgrade where we had to restructure our data.”

Stableford estimates the ROI on the company’s initial investment in Board to be around 12 months or less. “But it’s difficult to quantify as we are using the software in areas we hadn’t contemplated. “We have found it really easy to develop a report or a screen to give us information that we needed, where previously it would take a person a day or two.” At this stage, Stableford says he is looking at how the company can better utilise the product. “We are looking at its mobile functionality and see how we can develop our systems to be a bit more intuitive and more efficient.” Overall Stableford says he is very happy with the product and the support he has received. “For us, and for other SMEs, Board is a really good fit as far as features, functionality and budget, and development time frames and the fact it was so easily demonstrated and developed,” he said. Board International 02 8904 9777 www.board.com manmonthly.com.au

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Technology That Counts

IT@MM

Avoiding the perils of ERP system implementation Companies tend to replace their Enterprise Resource Planning (ERP) systems for one of two reasons. Either an existing system has reached the end of its operational life, or it is no longer providing the level of support required writes Robert Frandsen, Managing Director of InfoMotion.

ANY companies come to the realisation that implementing a new ERP system can be a way to gain a competitive edge. By streamlining internal processes and improving customer service levels, they are in a better position to gain valuable market share. These organisations have taken the step of placing technology at the forefront of their business planning. They recognise the strategic role it can play and understand the value of making required investments. This is not to say that they are allowing IT decisions to take precedence over business decisions, but rather they consider both concurrently.

12 MAY 2016 Manufacturers’ Monthly

The challenge Because ERP systems sit at the heart of an organisation’s IT infrastructure, any changes made can have unintended knock-on effects. Linkages with other applications and databases can be broken causing disruption to processes across the business. Such potential problems, however, should not stop organisations embarking on integration projects. The challenge is to complete the project without causing any of these problems. The goal might be to totally replace the ERP system or add fresh capabilities through the installation of additional add-on applications. Regardless of which goal is relevant, the key is to treat the project as a

business-driven initiative that is critical to the long-term growth and profitability of the organisation.

Effective implementation By following a series of carefully orchestrated steps, the perils of an ERP system integration project can be significantly reduced. These key steps include: Integration partner selection: The first step is the selection of a suitable technology partner to drive the project. This partner should have deep technical knowledge as well as a thorough understanding of the organisation and its activities. This understanding is vital to ensure the new infrastructure reflects real-world busi-

ness requirements and will deliver the advantages sought. Pre-project planning: Before any changes are made to the existing infrastructure or additional capabilities, the entire implementation project must be carefully mapped out. This planning process should cover everything from timelines and expected go-live dates to areas of responsibility for both the organisation and its implementation partner. Specific staff members should be nominated as ‘super users’ who can be trained and then assist others as required. A progress meeting schedule should be created and agreed with manmonthly.com.au

IT@MM lines of responsibility and communication made clear for all involved. Compatibility checks: Not all applications are designed to work cohesively or be readily linked to existing systems. Working with the implementation partner, the IT team should determine whether the proposed new ERP system can be integrated with other core IT systems. There can be particular challenges when it comes to linking a new ERP system with legacy databases. Popular databases, such as SQL Server and Oracle, are robust and able to meet the performance demands of an ERP system, however many organisations have databases in place that were never designed for these kinds of workloads. Examples of these include FoxPro and Access. If the underlying database cannot provide the required support for the new ERP system, complications can arise. In addition to core applications becoming unstable, Projekt3 07.04.16 11:08 Seite 1a

manmonthly.com.au

lack of support can make it difficult to create links to standard tools such as tablets, scanners or other thirdparty peripherals. Comprehensive Testing: Prior to switching operations to the new infrastructure, it should be thoroughly reviewed in a quarantined test environment. This will allow all new linkages to be tested for incompatibilities and flows between databases and other applications to be reviewed. Any required changes can then be made before the new system is put into production. Document changes: Keeping comprehensive documentation of all changes made to a complex IT infrastructure is vital. Staff that work on the project will inevitably move on, taking their in-depth knowledge of what has been undertaken with them. Proper documentation will ensure that any future alterations can be carried out with full knowledge of exactly what is in place and how it has been configured.

User Acceptance Testing: Once the new ERP system has been implemented, rigorous user acceptance testing should be conducted prior to it being put into production. This testing will identify any issues with functionality and user interfaces. Fixing these prior to going live will minimise disruption and help with rapid user acceptance of the new technology.

By taking a methodical and measured approach to the implementation of a new ERP system and its integration with existing applications, the chance of problems can be significantly reduced. In this way, business and IT strategies can be closely aligned, thereby delivering the most benefits in the shortest period of time.

Manufacturersâ&#x20AC;&#x2122; Monthly MAY 2016 13

IT@MM

Selecting the right safety logic system Choosing the correct system for an application can help optimise safety, enhance productivity and reduce costs. Brian Taylor and Tim Roback* explain.

ACHINE safety systems have evolved from strictly hardwired systems, where safety and standard logic were separate, to the multifaceted spectrum of newer programmable systems with varying levels of cost, complexity and wiring methods. When designing safety into machinery, engineers must verify compliance with today’s more stringent standards and determine how safety will interplay with productivity to keep down time to a minimum. Engineers also should consider how flexible and scalable a safety system will be with evolving operations.

Pivotal changes The implementation of ISO 13849 (AS/NZS 4024.1503:2014) and IEC 62061 (AS 62061), and the withdrawal of EN 954-1 in 2011, ushered in a new era of safety standards. These more rigorous standards require engineers to assess and document a safety system’s reliability by adding quantitative calculations to the design. 14 MAY 2016 Manufacturers’ Monthly

These standards allow a more methodical riskassessment process and, when combined with the latest programmable safety technologies, can help machinery achieve more predictable performance, greater reliability and better return on investment.

Out with the old Legacy safety systems consist of standard programmable logic controllers (PLCs), with each input, logic and output safety device hardwired. Significant wiring requirements make installation more complex, resulting in longer start-up times and more difficult system upgrades. A lack of diagnostics make troubleshooting more difficult and can lead to longer downtimes. Contemporary electronic safety systems deliver a streamlined architecture, meaning safety applications can be programmed with the same software used for the control and motion systems. This can help optimise safety, enhance productivity and reduce costs in multiple ways: • Simplified wiring: I/O devices can be directly

wired to the safety I/O modules that communicate with programmable safety systems to reduce wiring costs and shorten installation time. • Improved productivity: Flexible programming allows engineers to create maintenance modes of operation, such as safe speed or partial shutdown, to minimise machinery downtime issues. • More advanced diagnostics: Information can easily be made available to operators and maintenance teams, allowing them to quickly troubleshoot safety events. • Greater flexibility: Uptime-enhancing strategies, such as zone control, are easier to implement and expand.

Safety systems Choosing the most appropriate system for an application often can be difficult, given the number of factors to consider. The following overview of available systems can help ease the decision-making process. Safety relays are appropriate for minimal zone manmonthly.com.au

control with local hardwired I/O. Various options are available: • Single-function relays are designed for relatively small safety applications and simple machines needing single-zone control. Gateways allow them to send diagnostic data to a controller or HMI. • Designed for stand-alone machines, dual-input relays combine the functionality of two safety relays into one device. Any logic used with these relays is usually configured by switches on the relay and is very limited. Dual-channel relays usually provide only LED-based local diagnostics. • Modular safety-relay systems provide safety control for larger, more complex manufacturing equipment. They allow engineers to combine multiple single-function relays to support multiple safety devices, and also offer diagnostic and communication functionality. • Configurable safety relays are designed for applications requiring multiple safety circuits and control several zones. They enable a safety system to be created, controlled and monitored in the same software environment as the standard controller, which reduces programming time and can help increase productivity. Advanced con-

nectivity makes more information — including I/O values, logic status and diagnostics — available to users. A general-purpose programmable safety controller can provide more advanced functionality for safety applications that require some complex logic. This could include systems that require multiple safety zones, distributed safety I/O or interlocking with other safety controllers. Programmable controllers also are appropriate for applications where a safety PLC is excessive, such as when only a safety network is needed, or when simple and uncomplicated software is desired. Integrated safety systems are ideal for applications requiring advanced logic, situations where a large physical space needs to be safeguarded, or when a modular and scalable system is needed. They are designed for use in systems that have more than three zones of control, multiple axes of motion control, and high I/O counts. An integrated safety system uses dual processors to run all standard control functions and safety-control functions simultaneously from a single safety PLC. Safety memory can be locked and protected, while all standard functions work as they would on a regular controller. Standard logic and external devices can read

safety memory within an integrated safety system, allowing the display of safety statuses on humanmachine interfaces (HMIs), displays or marquees. Multiple safety PLCs in an integrated safety system can share safety data for zone-to-zone interlocking, and a single safety PLC can use remote distributed safety I/O between different cells or areas.

Integrated future While the full range of safety logic systems will continue to provide effective and affordable safety functionality for the foreseeable future, manufacturers are moving toward an integrated approach. In addition to optimising safety, uptime and productivity, integrated technologies can help reduce design, programming and system start-up time. They also simplify wiring and network integration, and can accommodate future safety changes better than hardwired systems. *Brian Taylor is safety components business director with Rockwell Automation, and Tim Roback is safety marketing manager with Rockwell Automation. The article was first published in the Journal From Rockwell Automation and Our PartnerNetwork which is published by Putman Media, Inc.

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IT@MM

Digitalisation technology helping protect the Great Barrier Reef Australian scientists and researchers are using leading German digitalisation and automation technology from Siemens to simulate, monitor and assess the impact of climate change, ocean acidification and water quality on marine life at the Great Barrier Reef.

ELIEVED to be the most advanced facility of its type in the world, the technology at the Australian Institute of Marine Science’s $35m National Sea Simulator (SeaSim) in Townsville has also helped researchers produce more than 5 million larvae for use in experiments. Jeff Connolly, CEO of Siemens Australia and NZ congratulated the researchers and Australian government for employing the most advanced technologies to protect reef for future generations. “The Great Barrier Reef is a global asset. It belongs to the people of the world, and it’s great to see that our technology can support the fine work and ingenuity of Australian scientists and researchers,” said Connolly. “For the first time researchers can

16 MAY 2016 Manufacturers’ Monthly

use technology to do things previously not possible.” The reef is one of the seven wonders of the natural world and the only living organism that can be seen from the moon, but according to Mark Read, Manager of Operations Support at the Great Barrier Reef Marine Park Authority, the economic value the Great Barrier Reef brings to Australia is about $5.6bn a year. “Also, the reef provides just under 70,000 jobs, with about 64,000 of those directly involved with tourism. However, including the natural value the reef brings means it’s very, very difficult to put a dollar figure on the entire area. It’s big.” At the SeaSim, the German digitalisation and automation technology is helping bring clarity on the impacts of climate change, coral bleach-

ing, pest management, sediment and pollution, and seawater technologies; all vitally important – not just to protect the natural conditions or marine ecosystems but to also maintain a sustainable economy and livelihood of people dependent on the reef. Dr. David Souter, research director at AIMS (Australian Institute of Marine Science) says SeaSim gives the organisation a capability they never had before in terms of the complexity of experiments they can carry out. “The Siemens technology underpins all the monitoring systems here within SeaSim. We are able to look at multiple environmental parameters that affect marine organisms, and this is the first time we have been able to do that,” Souter said. Connolly went to explain that German technology is helping Aus-

tralia herald in the Fourth Industrial Revolution (Industry 4.0) through innovative applications by some of the brightest minds in the country. “The SeaSim is a spectacular infrastructure development that not only helps in the research of marine life, but also the protection of the nation’s assets. AIMS has used automation tech-

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nology in a non-industrial environment to create a one-of-a-kind global facility that uses smart data and digitalisation to analyse one of the wonders of the world. It is truly remarkable,” said Connolly. The main focus of SeaSim is to provide a complete plant/process automation system to run highquality marine research in an aquarium setting. The initial automation solution was developed by SAGE Automation, one of Australia’s leading independent automation and control systems integration services providers and a Siemens Solution Partner. Siemens’ Simatic PCS 7 is used at the facility to conduct multiple experiments running simultaneously over long periods of time. Some experiments will run for years, and the system enables researchers to add or remove other experiments without taking the control system offline for system modifications. According to Adrian Fahey, CEO of Sage Automation, the project is a great example of industrial technology being applied successfully in a non-traditional industrial application. “The solution was driven by high-precision data collection and reporting.” Craig Humphrey, SeaSim’s Precinct Operations Manager, said over 70 individual experiments have been conducted in the SeaSim to date, ranging from experiments run over days to weeks to others which will take years to be completed. Siemens 131 773 www.siemens.com.au

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Manufacturers’ Monthly MAY 2016 17

IT@MM Co-innovation and social innovation: Hitachi takes the lead in the industrial revolution

N a worldwide basis, Hitachi is a unique company because of how it positions (and continues to reposition) its IT and social infrastructure businesses. The company’s new Social Innovation Business resolves issues faced by society and customers through innovation that combines both IT and social infrastructure, thereby contributing to improvements in people’s quality of life. Manufacturers’ Monthly managing editor Branko Miletic spoke to Hitachi’s CTO/Vice President & Chief Engineer Global Solutions, Strategy & Development IT Platform Division Michael Hay about how the company’s ideas on repurposing IP is leading the way to a better understanding of how innovation can be managed more usefully. MM: What does co-innovation actually mean and how is this being realised in industry? Michael Hay (MH): Co-innovation means working profoundly in partnership between two organisations to realise a dramatic new capability or efficiency improvement. Co-innovation starts from merely engaging with prospective partners to disclose current capabilities and retained IP that could be used by them to identify and solve a game-changing problem. It then moves into one of many potential exits. In the shallowest form, customers are able to make their mark on soon to be released products, goods and services by supplying their feedback. However, the deeper form two (or more) parties working together to realise a dramatic outcome that will lead to a new good, service or product. MM: Is repurposing IP another way of saying ‘open source’ or does it have a deeper meaning? MH: Open source is an example of IP reuse, but it is indeed deeper as it includes both closed and open variants. It may also be a Hitachi subsidiary providing IP for another Hitachi subsidiary to do something different. 18 MAY 2016 Manufacturers’ Monthly

The combination of Hitachi’s rich industrial heritage and our deep domain expertise in both operational and information technology uniquely positions us to address many of society’s most pressing issues, while creating new business opportunities. We are repurposing of IP beyond Hitachi to/from other companies. Here is an example of that: the repurposing is Hitachi’s consumption of Nissan’s backup camera for our Mining Haulers. As a result the notion of repurposing obviously would include both open and closed IP assets and could include both between Hitachi companies and beyond Hitachi. MM: Companies talk about social innovation: you said it was the ‘intersection of technology and society’. How does this look in practical terms and how does it help industry? MH: In the case of the National Health Services in the UK we’re using works around diet and information technology to assist with the management of diabetes. While the above example isn’t about manufacturing per se it is related to the food industry. Further in the area of healthcare HDS is working with University Technology PETRONAS (UTP), one of Malaysia’s most prominent universities, to improve clinical support for traumatic brain injuries. The partnership will bring together Hitachi Cloud Services Connection (HCSC) – Healthcare, a first-of-its-kind open healthcare cloud platform for analytics, with UTP’s biomedical image analysis and analytics. The study will initially be focused on traumatic brain injuries, integrating magnetic resonance imaging (MRI) scans, blood panels and intensive care unit (ICU) data to deliver precise and instant clinical support that can benefit both patients and healthcare professionals. Because HCSC – Healthcare is based on industry standards, any additional medical data can easily be integrated and analysed throughout the study. In other cases we’ve used our

Hitachi’s CTO/Vice President & Chief Engineer Global Solutions, Strategy & Development IT Platform Division Michael Hay technologies (both emerging Artificial Intelligence and Robotics) to improve logistics for shipping and picking. In this system the aim was to put AI in the role of an assistive co-pilot to the warehouse work staff so that they can achieve higher productivity. So the human being, the robot and the AI were all acting as mutual partners to achieve the final result. So it is the intersection of these three things that resulted in a real business improvement. Other areas that the AI system could help with include non-seasonal improvements on revenues for retail venues. For all of these cases it is the intersection of the humans in society with technology, or perhaps better said is that the technology is joining society. Further in many of these cases the usage of these digital tools could be used to improve efficiencies, etc. MM: With a global economy that seems to be patchy in terms of growth, how do the above-mentioned notions help with growth? Are we talking about creating new opportunities or is this all about extracting the maximum value out of existing projects? MH: Both are possible. For instance I’m aware of an innovation at a financial services company where

the challenge provided to their partner was to reduce costs 10-fold. This cannot merely be done by reducing staff and must employ the usage of novel digital technologies. In their case a new expense system was used which added the idea of gamification to the equation. As a result when an employee saves over the required threshold a percentage of the savings is returned to them. So this is on the extracting value side. For the idea of growth, the thinking would be to enable the genesis of new services or capabilities that lead to new revenue streams or enhanced competitiveness. Here we can talk about Subaru’s usage of Hitachi’s technologies behind the Subaru EyeSight system. Our partnership with Subaru provided them with a competitive advantage in assistive breaking. MM: What about disruption? While uncertainty and disruption are related, how does this play out in industry and in particular for the IoT? MH: Disruption frequently replies to a known and certain state that is being challenged. My point about the current economic condition is that there isn’t a known state to disrupt so disruption isn’t relevant. In fact we’re entering the ‘Era of Uncertainty’ whereby our current approaches to business don’t necessarily apply. For example today’s customers are tomorrow’s partners, today’s competitors are tomorrow’s customers, today’s customers are tomorrow’s competitors, etc. So whether it is IoT or another vertical you may find that with changing laws there are new competitors where you had not seen them before. For example in the US the laws around personal investing and lending have changed. The result is that services like KickStarter and Lending Clubs have emerged to challenge VC investing and loans from traditional banks respectively. This is not manmonthly.com.au

IT@MM something that the Financial Services industry would have thought possible in previous years. MM: You mentioned the term ‘perpetual beta’: what implications does a ‘perpetual beta’ phase actually mean for companies? MH: With innovation moving from “behind the black cloth” to being more publicly transparent (whether limited or fully open) companies need to be prepared to test early and often to achieve first mover status in their existing or new markets. For example, if a new service is somewhat imperfect in the beginning, because it uses beta technologies, but enables them to move into a new space then it provides longer time in the market and the ability to ‘make the market.’ This however means there is potentially a need to race something to market faster with less completeness. The notion of running in beta is tied to getting services, goods or products out to market faster and then being willing to prune when they aren’t viable.

MM: Are there local practical examples of ‘perpetual beta’ ? MH: Hitachi Zosen Corporation, Hitachi, Ltd., and Yanmar Co., have been commissioned to conduct a study on the effective use overseas of advanced positioning signals from Japan’s QuasiZenith Satellite System (QZSS), organised by the Ministry of Internal Affairs and Communications of Japan. The study seeks to verify that advanced positioning signals transmitted from the QZSS can be used in precision farming in Australia. Specifically, demonstration tests will be conducted using the advanced positioning signals to control a self-steering robotic tractor and perform actual farm work in a paddy field. At present, technical validation is in progress for three high precision positioning methods: 1) RTNet, 2) RMIT, and 3) MADOCA . The demonstration tests aim to determine the optimal positioning method for precision farming in Australia. MM: You spoke of ‘Train as a Service’ as the model for the next phase of

growth for many verticals…how do you relate this to say the mining industry or food processing? MH: I can imagine that in mining or more generally natural resource development this is possible. Perhaps more generally the goal would be outcome based benefits, such as providing increased tonnage of production per unit time which can be tied to an as a Service delivery. I assume the same thing could be supplied to food services. MM: You mentioned focussing on transition IT as the next phase of growth for Hitachi. Just how much of your business will this make up in say 2020? MH: HDS is focused on growing its social innovation as a business over the coming year, evidenced by increased investment in resources and focus. While today the bulk of our revenues comes from traditional and emerging infrastructure technologies, such as flash and data protection storage, we expect to see these traditional product lines experience flat

or diminishing growth by 2020. We are currently seeing an increased appetite for virtualised, cloud-based and hyper-converged technologies, and are increasing our share of market and revenues in these areas. Finally, our social infrastructure is expected to grow rapidly, particularly in the areas of analytics and the Internet of Things. By 2020, we expect these last two technology areas to contribute significantly to the overall revenues for Hitachi Data Systems. [As Vice President and Chief Engineer at Hitachi Data Systems, Michael Hay leads a geographically dispersed team called the Global Office of Technology and Planning that focuses on competitive and customer market insights, responses to disruptive market forces and open innovation through incubations to enrich the Global Hitachi ICT portfolio.] Hitachi Australia 02 9988 4100 www.hitachi.com.au

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IT@MM How agile software is helping Williams fulfil their need for speed Seattle-based Avanade has been partnered with the Williams Martini Racing team since January 2015. The three-year partnership is focused on helping the team transform and perform better by leveraging digital technologies. Managing editor Branko Miletic spoke to Chris Miller, Avanade CTIO and Graeme Hackland, Williams Martini Racing IT Director for an insight into how IT is helping the F1 racing team stay at the front of the grid.

“

ONE example is how with the use of an agile software development process, Avanade developed a solution to automate Williams’ wind tunnel tests in just three months,” said Avanade’s Miller. “Previously, these tests were preceded by time-consuming checks to ensure expensive prototypes would not damage or be damaged by the even more expensive testing facility.” “Avanade’s solution automates the process of analysing and running quality checks on service requests from aerodynamicists, ensuring that the combinations of prototype designs and requested wind tunnel simulations can be performed safely.” “Avanade also built a portal for the process that streamlines and speeds communications workflows, which the Williams team estimates will save approximately 300 personnel hours per year.” Williams Martini Racing’s primary business goal is to perform better on and off the track. Formula One is arguably the most highly regulated, technology-dependent motorsport in the world and digital technologies provide an exciting opportunity for the team to drive new innovations and operate more effectively. “Over the course of the partnership,” said Miller, “Williams Martini Racing has had three top priorities: improving internal collaboration; enhancing fan engagement; and speeding access to data.” “Together with Graeme and the Williams team, we have so far identified 50 projects to address these priorities.” “This includes helping Williams to digitise workflows across its organisation by implementing SharePoint

20 MAY 2016 Manufacturers’ Monthly

Online for improved information-sharing, and migrating the team to Office 365 and Microsoft Lync to improve internal collaboration.” “In the highly competitive Formula One industry, it’s essential that Williams is constantly at the forefront of technology innovation,” said Graeme Hackland of Williams Martini Racing. “We have been working with Avanade to build a digital workplace to empower our team with a more social, mobile, always-on and data-driven environment.” “Aside from the wind tunnel testing solution, another Avanade-developed app is giving our engineers realtime access to data from the tyres of our cars, so they can make decisions on strategy during a race – rather than after the event, as was the case previously.” “However, we are not only seeing value from digital internally – demand is coming from across the business and Avanade is helping us meet that demand in an agile way.” “For example,” said Hackland, “In a matter of weeks, Avanade deployed a new Williams Martini Racing web presence on Sitecore with Microsoft Azure, which is enabling us to engage better with our fans. The Microsoft Azure platform also allows flexible provisioning for peak loads, which we expect will achieve cost savings of up to 50 per cent.” According to Hackland, via the use of an agile development process, Avanade’s global team was able to develop and launch the tyre optimisation app within five weeks. “The tyre optimisation app allows us to instantly capture and process information from our trackside WISDOM server, a data warehouse

that integrates sensor, weather, telemetry, and other real-time feeds. Using proprietary algorithms, the application takes raw data in order to isolate the impact of tyre status on performance,” he said. “The application presents this analysis in the form of highly visual trend lines that can be clicked on, enabling the operator to drill down to analyse performance lap-by-lap.” “Before we had the Avanade-developed application,” said Hackland, “data was generated by our cars or from our GPS or weather tracking systems during races, but not all the data could be processed and communicated fast enough for our engineers to use it in real-time at the track or at our headquarters in the UK during Grand Prix sessions.” “Ultimately, the team is now able to make fully informed decisions on tyre strategy during a race, which directly impacts our performance on the track.” According to Miller working at the speed of F1 has also helped Avanade to be more effective in delivering agile cloud and digital innovation to the team’s enterprise clients. “At the core of our work with Williams Martini Racing is digital

business transformation, and that is really what translates into value for our enterprise clients,” he said. However it’s not just the glamorous world of motor racing where agile software solutions are finding a niche. “Like our partnership with Williams Martini Racing, Avanade is working with companies across all major industries to help them transform to a digital workplace,” said Miller. “The advanced analytics we are working with the Williams F1 team on are also similarly a digital workplace priority for our enterprise clients in mining.” “A great example in the mining industry here in Australia is our work with Rio Tinto, where we are migrating the company’s information systems and technology platforms to a cloud-based ‘as-a-service’ solution delivery model.” “Aside from helping Rio Tinto operate more efficiently, migrating to a cloud delivery model will free the company’s internal IT resources to focus on innovation and value-added tasks instead of the modernisation and maintenance of systems.” Avanade Australia 02 9005 5900 www.avanade.com manmonthly.com.au

Celebrating Excellence in Industry

Nominations NOW OPEN Celebrating Excellence in Industry Celebrating Excellence in Industry Nominations NOW OPEN Nominations NOW OPEN

Employer of the year Awards Dinner: Thursday 25 June 2015 Excellence in Engineering Time: 6.30pm – 7.00pm start Venue: The Ivy Ballroom Excellence in Manufacturing Excellence in Engineering Costs: Excellence in Mining Date: 14th July Single 2016 tickets – $165 Inc GST Excellence in Manufacturing Table of 10 – $1320 Inc GST Advocacy Time: 6.30pm for a 7.00pm start Employer of the year Excellence inIndustry Commercial Road Transport Awards Dinner: Thursday 25 June 2015 Excellence Mining BDM in ofinof the Year Venue: Showtime Events Melbourne Employer the year Excellence Engineering Time:Thursday 6.30pm –257.00pm start Awards Dinner: June 2015 Industry Advocacy Award Marketing/Communications Award Excellence in Engineering Venue: The Ivy Ballroom Excellence inthe Manufacturing Time: 6.30pm – 7.00pm start BDM of Year For further information Mentor of the Year Venue: Ivy Ballroom Costs:The Single ticketsplease – $165contact Inc GST Excellence in Manufacturing Excellence in Mining Marketing/Communications Award For further information please contact Samantha.gilroy@cirrusmedia.com.au Costs: Single tickets $165 IncIncGST Table of 10 –– $1320 GST RisingofStar Award Excellence Mining Mentor thein Year Industry Advocacy lauren.winterbottom@primecreative.com.au Table of 10 –0944 $1320 Inc GST (02) 8484 Rising Star Advocacy Award Industry Social Leader (03) 9690 8766 BDM of the Year Social Leader of the Year BDM of the Year Award Marketing/Communications Marketing/Communications Award For further information please contact Mentor of the Year close Nominations 5pmTuesday Thursday 9 information April Nominations 31st May 2015 2016 For further please contact Mentor of the Year close5pm Samantha.gilroy@cirrusmedia.com.au Rising Star Award Samantha.gilroy@cirrusmedia.com.au Nominate nowat: at:www.womeninindustry.com.au www.womeninindustry.com.au Rising Star Award Nominate now (02) 8484 0944 Social Leader (02) 8484 0944 Social Leader

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ChangeMANAGEMENT Embracing change Change is inevitable and manufacturers who resist it will struggle to survive in today’s competitive market. Alan Johnson reports.

OMEWHAT surprisingly, many manufacturers still regard Change Management as just one of those gimmicks thought up by consultants to increase their income. When in fact the process can often be vital to a manufacturer’s long term survival, especially one presently in the automotive industry. As most readers would understand, Change Management is a discipline that guides how companies prepare, equip and support individuals to successfully adopt change in order to drive organisational success and outcomes. Mark Philips, Australia’s Head of Manufacturing with Grant Thornton, one of the world’s leading advisory firms, said he is surprised by manufacturing’s lack of enthusiasm and urgency with Change Management, especially in areas where there has been change. He said Change Management is 30 MAY 2016 Manufacturers’ Monthly

critical, but believes the biggest challenge with it is understanding what companies are trying to change to, admitting it’s hard for manufacturers to do what they are currently doing, but differently. “When manufacturers go to look at modern technology, say additive manufacturing, I don’t tell them to try and create something new, instead I tell them to try and create something they couldn’t do in the past, which they can now do. “That means changing their whole way of thinking. “For example, metal manufacturers are now able to produce perfectly curved surfaces that they couldn’t do before; that has to be in their repertoire of thinking,” Philips told Manufacturers’ Monthly.” He says the hardest part of getting a Change Management project off the ground is getting people to understand where they need to focus their business.

“The second part is getting them to document it, then it’s about getting them to believe in it. “The fourth part is breaking it up into a number of little achievable steps over a period of time.” Philips admits Change Management can be a challenge, but says manufacturers who have gone through a structured process of identifying what they can do, how they

Manufacturers should look at the commonalities of what’s involved, because often it’s the same but described in a different language.

can get there and have put a plan in place, are far better off than those who rely on a pot luck approach. He said the first element on the Change Management journey is understanding what you don’t understand, and understanding what you can’t do. While he described the importance of listening to customers and stakeholders as the second element. “It’s surprising how often customers are telling companies that they are not doing certain things, but the companies are not listening.” He said the third element is when companies are looking to move from one opportunity to another. “Manufacturers should look at the commonalities of what’s involved, because often it’s the same but described in a different language.” Philips pointed to car component manufacturers as an example of the first element. “These guys are very bad at distribution, but it’s only because their customers, the car companies, collect their product from them rather than having to deliver the product to the customer, which is the normal situation. “By default, the car companies have taken away the skill set of how to distribute.” He said the problems start once they leave the car industry, suddenly they are having to package the product to go on the back of a one tonne truck as opposed to a covered semi-trailer. Then they have the problems of stacking the product on a pallet, organising transport and then getting the product off-loaded at the other end. “So it’s really important companies look at what they can and can’t do.” He said the second part is understanding how they can use the skill sets they have in different markets. manmonthly.com.au

Change MANAGEMENT Philips pointed to manufacturers in the food industry who believe they have a number of unique issues around traceability, validation, delivery times, sequenced inventory and quality. “However we have found that the car component guys have all these skills and understand all these areas. The problem is they don’t think they can make the transition, when it is a very real possibility.”

Reskilling Philips said there is a lot of talk around at the moment about reskilling automotive companies. “But I would like to see more people understanding the skill sets already in the automotive industry and working out how they can capitalise on them in other industries. “For example, when it comes to cost-down skills, the automotive industry has been producing products year on year at roughly a 3 per cent reduction in price. While food manufacturers are focused on delivering a better quality product to consumers at a lower cost. That’s just a different language for cost-downs.” Philips said the problem is a lot of food manufacturers see cost-downs coming at a cost of margins. “However car component manufacturers have already worked very hard to maintain their margins, but still deliver the required cost-downs. This is a really good skill set to have in any industry. “And at the customer level, the car companies have learnt the language of how to achieve cost-downs without sending the car component manufacturers under, to retain security of supply.” Philips said there are a lot of opportunities out there for car component manufacturers. “The problem is, while they know their space very well and know how to produce their components using their technology for their customer, they don’t necessarily understand how their manmonthly.com.au

technology, or their skill set, can be adapted to different products and different customers.” Regarding Change Management Philips said it is very important companies do their homework and understand the skill sets of their employees. “There is also some analytical work needed to know exactly what their capabilities and capacities are, including positives and negatives. Then they can work out how they can position themselves for the opportunity.” According to Philips, on occasions manufacturers might have

outcomes and timelines that can move.” Philips admitted there is quite a lot of government support for SMEs, noting the Victorian government’s Success Mapping program, but not for mid-size companies. While he admitted they can do a lot for themselves, he says most don’t have the financial might to bring in the people required. Philips says it’s very difficult to take day to day operation people and get them involved in a project.

REFLECT ON SAFETY.

According to Philips, on occasions manufacturers might have to de-skill themselves ready for a new industry. to de-skill themselves ready for a new industry. He pointed out that while car component manufacturers can’t afford to deliver components that are under or over weight, it’s not quite the same in the food industry for example. “While food manufacturers can’t deliver a product that is underweight, it’s OK to deliver a product that is overweight. Consumer don’t get upset if their chocolate bar contains 52g as opposed to 50g. “So car component manufacturers who are used to delivering products at exactly 50g every single time, have to re-educate employees to think about tolerances and what that means for their equipment and processes.” To make these changes, Philips said it’s vital to have the CEO and the board very much in support, plus a dynamic CFO who can embrace change. “Unfortunately there are a lot unknowns when going through this change process, with a level of risk and un-certainty. “The board and senior management need to be prepared for both positive and negative

“The problem is they get very excited about the new project and drop the ball on their operation work. Plus the day to day operation skill sets needed are very different from the strategic skill sets needed” Philips said companies need a different blend of people on a new project with a realistic sounding board. “A company going through a process of change needs to embrace the negativity along the way in a very honest way. Many companies find it hard to do that.” Philips said he would like to see all manufacturers embracing Change Management. “At least that first step of the journey, looking at where the business is at and where it’s going. “And it’s important they invest some money to do these exercises, because if they just rely on government, or get the service for nothing, they don’t value it and they don’t question it,” Philips said. Grant Thornton 03 8320 2222 www.grantthornton.com.au

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Manufacturers’ Monthly MAY 2016 31

HR&TRAINING A skilled workforce now a must-have A range of training courses, from competency based apprenticeships through to mature age workers’ programs, can help raise the skill levels of a workforce. Alan Johnson reports.

WENTY or thirty years ago, many manufacturing plants were still filled with a high number of unskilled and semi-skilled workers, most doing boring repetitive jobs. But not today. Over the years there have been major changes occurring in the manufacturing industry. It has become less labour intensive with far more technology and equipment taking over the roles of many jobs. In many cases, these workers have been employed for 30 years or more and have a wealth of experience. The problem is there are limited calls for their specialist areas anymore. However, as most employers know, mature age workers, those with a considerable body of experience, can easily turn their hands to many other areas. To take advantage of this experience, Bob Paton CEO of Manufacturing Skills Australia (MSA) told Manufacturers’ Monthly, there are a range of programs and government funding opportunities for manufacturers to improve and upskill their workforce. “For example, the new Skills CheckPoint pilot program is aimed at pointing people into different careers or occupations where they can use the range of the skills they have,” he said. Aimed at workers between 45 and 54 years, the program is a free advisory service funded by the Australian Government. It offers an assessment of where individuals are in their career and guidance if a change in career direction is needed or desired. This may include transitioning into new roles within their current industry or pathways to a new career with a view to encouraging reskilling in the new industry and engagement in the workforce. Pilots are being run in NSW, Queensland, Victoria, Western Australia and the ACT. Paton said the true measure of confidence is when workers can take something where they have the skills 32 MAY 2016 Manufacturers’ Monthly

and knowledge and apply it in a different context and environment. “And most people who have been in the workforce for 10 years or more are doing that as they move from job to job. What they learnt in one industry they can move to another,” he said. “This is about getting a formalised approach to that and pointing out that the strengths people have can really help them shift into other occupations. It is a great initiative and certainly helps getting the best out of the workforce.” However he admitted that working with mature age workers requires a far different training approach to younger workers. This is mainly because they are not starting from the baseline. “People who have been in the workforce for decades have a wide range of adaptable skills, and it’s about showing them how to adapt those into a different context and environment,” Paton said. Paton believes most tradespeople have the fundamental skills, such as problem solving, to successfully move into management roles. “This program recognises some-

thing which people have known about for a long time. It tries to make it a more efficient and effective process, moving people into different forms of work,” he said.

Incentives and opportunities Paton said the Federal government provides a range of incentives and opportunities for companies, manufacturers included, to improve their workforce and up skill people. “Many of the programs are not about the skills needed to operate machines or pieces of equipment, but about the flow of work and getting the best out of the equipment and people that are there such as Lean Manufacturing,” he said. He said these up skilling programs have been very successful and most are funded by the Government, with a co-contribution from the company on a sliding scale, depending on the size of the company. “In many cases the company can notice, often within weeks, a change in productivity gains arising from those programs. They are quite significant,” he said.

Paton said one scheme that should be of interest to manufacturers is the Industry Skills Fund which is replacing the very successful National Workforce Development Fund. “This very successful co-contribution program, which is managed by the Federal Government’s Department of Education and Training, gives companies the opportunity to get tailored training of its employees to suit the company’s particular needs and that of their workers,” he said. “It has the ability to turn a manufacturer who might be facing difficult times into one that is more successful.” Paton said another standout program is the newly named Competitive Systems and Practices, which is a series of vocational qualifications aimed at business improvements by implementing lean processes and systems. “It’s not rocket science but it’s quite complex in detail. There are programs that start at very low level workers and go up from there,” he said. “It starts with areas such as how to organise a workplace, then goes on to incorporate a lot of the fundamenmanmonthly.com.au

HR&TRAINING tal principles of Lean Manufacturing, but in ways workers can build into, and their supervisors can help to.” He said these sorts of projectbased programs are readily available, with funding available in most cases. “They can provide great gains in productivity. And rather than workers sitting in classrooms, they are actually delivered in the workplace with the context of the enterprise built around it. They are very successful,” he said. He said the issue of mature age workers is growing, with companies looking for people with skills. “While older workers might face physical challenges associated with their work, they still have significant benefits that they can provide to a company,” he said. “It’s about finding ways of doing that, including passing on their knowledge and skill onto younger people. “It’s an un-tapped resource and as a nation we still need to do more work on how to get the best out of that.”

Competency-based training For workers at the other end of their working lives, an Engineering Excellence Project has been established under the Accelerated Australian Apprenticeships for manufacturing trades in a bid to increase the completion rate of apprenticeships. The three year project, which ran up to 2015, has shown that shifting from time-based assessment of apprentices to competency based progression is having a positive effect on completion rates for engineering apprentices. The project has resulted in employers having a better understanding of competency based progression and completion, and has led to improved communication between employers and Registered Training Officers (RTOs), who now have the tools needed to manage the implementation of competency based progression for their apprentices. Megan Lilly, Head of Workforce Development with the Australian Industry Group (Ai Group) told Manufacturers’ Monthly her organisation is committed to competency based training. “It means people can move through the apprenticeship system based on their genuine progress and manmonthly.com.au

what they are doing in the workplace,” she said. She pointed out that many young apprentices have finished Year 12 and are much more engaged in the learning and training experience. However Lilly admitted it is a difficult model and adds complexity to the apprenticeship system. “It doesn’t fit comfortably with a neat timetable model. But it’s a fresh contempory model that meets the need of the individual, and if they can get through quicker and get more meaningful employment that’s a really good outcome, but if they need more time and get it then that is also a good outcome.” Around 2,500 apprentices were involved in the project across the country, which started in 2013. Lilly said the system is supposed to be rolled out across manufacturing and other industries, “but it appears some people are keener than others”. She said that, while there are still quite a number of fall outs with this new system, the number is far better than the number for time-based apprenticeships “which is alarmingly high”. Lilly said there are many reasons why so many apprentices leave early. “Sometimes it’s quite complex. But the biggest risk fall out period still remains the first six months, as they realise it’s not for them,” she said. Interestingly, she doesn’t see this new system as the end of traditional apprenticeships. “It’s rather a more contemporary flexible model with a lot more focus on the apprentice and their experiences,” she said. “These are important things, but it doesn’t change the core of the apprenticeship which is the relationship between the apprentice and the employer and the learning in the workplace.” Instead of the traditional four or even five years, many apprentices are now finishing their training in just over three years. And most, but not all, employers are very happy with the scheme. “I think there needs to be more information of how the system works up front, and what their role is, which is quite important,” Lilly said. Her advice to manufacturers is

to take on more apprentices and embrace the scheme. “Manufacturers should be deeply engaged in helping apprentices learn and signing off on their competencies. This way, employers get a good outcome, as well as the apprentices,” she said. “While there are no major shortages of skilled workers at the moment, it won’t take much for it to

become a major issue again. So we should be cracking on and getting more training happening now.” MSA 02 9955 5500 www.mskills.com.au Ai Group 02 9466 5566 www.aigroup.com.au

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Trucks,UTES+VANS

Cab chassis and van models

VECO’S Daily cab chassis range provides operators with superior power, strength, comfort and payload, making it the perfect tradie or contractor’s truck for those who have outgrown their ute. A tough C-section steel chassis allows easy fitment of a wide range of body styles, making the Daily extremely versatile. And when combined with the range’s 2.4t payload*, 3.5t braked towing capacity and choice of powerful engines, the trip to the work site’s never been easier. The top of the range 3-litre, twin turbo diesel engine provides market-leading power and torque of 150kW (205hp) and 470Nm, ensuring there’s plenty of grunt on tap 34 MAY 2016 Manufacturers’ Monthly

to easily handle heavy loads. The trucks are available in a choice of smooth-shifting 6-speed manual or marketleading 8-Speed full automatic transmission, offering superfast gear changes (200 milliseconds). To reduce fuel consumption, the Hi-Matic features both ‘Eco’ and ‘Power’ modes. When Eco is selected, gears change at a lower rpm, while Power mode holds the vehicle in each gear longer, for even crisper acceleration. All Iveco Daily cab chassis feature an abundance of safety equipment. Standard features include disc brakes all round with ABS, four airbags and electronic brake

force distribution. Even more safety equipment is available at additional cost. This safety equipment is far greater than what’s available in its light duty cabover truck competitors, and ride, comfort and handling is also far superior. On the inside the Daily offers a sophisticated and car-like interior with excellent visibility and intuitive placement of all dials and controls. Extra comfort for the driver and front passenger comes courtesy of mechanically-suspended seats with multiple adjustments – the new range also offers the option of heated driver and passenger seats with three

degrees of freedom. The vehicles’ 4-speaker audio system features FM/ AM tuner; CD/mp3 player; USB drive via USB input on the dashboard, AUX input; Bluetooth connectivity and radio and phone controls on the steering wheel. The unit also features an integrated 4x20W amplifier. The Daily range also includes dual cab models with enough seating to comfortably transport a work crew of six plus the driver. And if a fully enclosed body is needed, there is a wide selection of Daily vans on offer. The vans boast all the great benefits of the cab

chassis range and are available with volume payloads ranging from 7m³ to 19.6m³. Choose from three engines, two transmissions, many payload and volume ratings, different wheelbases, single or dual rear wheels and three roof heights. Whatever the job, there’ll likely be a Daily model to suit. Also standard in the van models is the ‘Iveconnect’ multimedia system for the 6.2” touch-screen, featuring a reversing camera and satellite navigation (with truck software). Iveco Australia 03 9238 2200 www.iveco.com.au *Varies depending on body fitted. manmonthly.com.au

Trucks,UTES+VANS

Seven speed status symbol Launched late last year, the Mercedes-Benz Vito 114 is now on the road. Chris Smith took the short wheelbase version for a test drive to see how it performs.

AN a commercial van be a status symbol? If MercedesBenz’ marketing department is right, the answer may actually be yes – albeit it not for the badge on the front, but the performance you receive, especially in terms of fuel economy. To see if the new Mercedes-Benz Vito can hold up to the bold claim, Manufacturers’ Monthly takes the ‘114’ short-wheelbase version for a spin. Our rear-driven test vehicle has the optional 7G-TRONIC automatic transmission fitted instead of the standard, six-gear manual box and can boast some 5.8 m3 of storage space – making for a solid 1,180kg payload. Under the hood is a Euro VI-rated 2.2-litre BlueTEC diesel engine. The four-cylinder comes in three different power variants, with the 114 positioned at the shallow end of the pool.

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Yet, even the small version with 100 kW (136hp) – available at 3800 rpm – provides ample power and torque to move in traffic, largely due to its two-stage turbocharging system. A small high-pressure turbocharger ensures good responsiveness right from low revs, barely above idling, while a larger, low-pressure turbocharger is responsible for high output at higher revs. The fully automatic transmission incorporates seven forward gears and is able to skip between them to create a smoother driving experience. To save on fuel, the engine goes dormant when you stop – a function now standard in many passenger cars that brings down fuel use during our test to 5.7 litres/100km, with a lifetime average of 6.9 litres/100 km showing on the Vito’s on board computer system – figures that may indeed be

worth certain bragging rights. What was missing in our test vehicle is the Vito’s optional collision prevention assist, which constantly monitors the distance between the van and the vehicle in front, emitting an audible and visible warning if there is any risk of collision. Unfortunately it’s only an option, along with the Lane Assist feature. The Vito also offers Attention Assist and Crosswind Assist – systems that monitor steering wheel input and make use of the ESP sensors and functions to counteract strong lateral forces acting on the vehicle. Our test van, meanwhile, has work in mind, with plenty of cabin space and a comfortable seat for the driver. As a working van goes, it is very well appointed, with everything necessary for the job. It comes standard with three-point seat belts for all

seats, pre-tensioners for driver and front passenger, a safety body with high-strength load-bearing members, height and reach adjustable steering wheel, headlight beam range control, rear centre stop light, adaptive brake lights and halogen front and rear fog lamps. Yet, it’s the little things that could make the Vito a status symbol in the van world. The air-conditioning, for example, starts to put cold air into the cab as soon as the driver remotely unlocks the van. This feature alone makes the Vito unique and well worth a thought for courier work. In combination with a comfortable ride and a classy interior, it’s definitely a contender for the drivers’ favourite of 2016. Mercedes-Benz Asia-Pacific 03 9565 9266 www.mbaup.com.au

Manufacturers’ Monthly MAY 2016 35

Trucks,UTES+VANS Ace High After more than 46 years in the Australian market, Toyota last year brought in a more powerful and fuel efficient version of the humble HiAce – winning it the number one position in the van market and its best result since 2009.

INCE its market launch in 1971, more than 300,000 Toyota HiAce vans have been sold in Australia, making it a popular, longlasting workhorse for many a local industry. In fact, its more than 40 years in the business haven’t really affected its market appeal at all: Cumulative HiAce sales totalled 9,985 units in 2015 alone, proving the HiAce is still attracting both commercial and recreational customers around the country. It commanded both the number one position in the light van segment – with 7,351 sales marking a 14.3 per cent increase over 2014 and the best result since 2009 – and it was also the market leader in the light bus segment, generating a total of 2,634 sales. For the van’s latest incarnation, Toyota has now focused on improving the fuel economy of both its diesel and petrol engines, hoping to make the HiAce even more appealing to fleet customers around the nation. To do so, it launched a new Euro V petrol engine that promises increased power output and decreased fuel use; as well as two all-new variants, a diesel crew van and a 12-seat petrol commuter bus that can be driven on a car licence; plus additional safety features to get the HiAce in line with competitor offerings. While Toyota says there has been a shift towards diesel over the past decade – arguably due to the better fuel consumption results – the new petrol engine is said to be able to keep up better with the economical diesel. It now promises almost 20 per cent less fuel consumption, which is almost a fifth in fuel savings over the last HiAce 2.7 litre petrol engine. The

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new machine also has a reported gain of 6.3 per cent in power. Maximum power increases by 10hp to 160hp (118 kW) at 5,200rpm while there is also a gain of two Nm in peak torque to 243Nm (180 ft lb) at 4,000rpm. Simultaneously, fuel use for manual variants drops as much as 12.9 per cent on the official combined cycle, according to Toyota. Emissions have also been cut by double-digit percentage rates to between 237 and 263 g/km of CO2, all of which are below the previous best figure of 274 g/km, according to the company. The HiAce’s three-litre diesel engine, meanwhile, remains extremely economical, driving fuel economy as low as eight litres per 100km, which is in line with competitor vans’ fuel economy figures. The electronically controlled six-speed automatic transmission (AC60E) has a direct-drive fourth gear and overdrive fifth and sixth gears, and is the reason for lower fuel usage and greater power, says Toyota. The final-drive ratio is 4.875:1.

For a reversal of the tradition, it now uses less fuel than the manual gearbox on almost every measure, with consumption falling by up to 16.7 per cent, with the long wheelbase (LWB) van leading the way at just 9.8 l/100km. Safety has also been a point of improvement, with every new HiAce now equipped with electronic stability control, brake assist for greater stopping power in an emergency, hill-start assist and an emergency stopping signal. Again, these safety features should bring the HiAce in line with its European counterparts. Another positive for the van is that the LWB variants have gained a window in the left-hand sliding door to improve driver visibility, and with it, safety. While such a feature has been criticised in the past for decreasing the available payload slightly, it is now considered a welcome aid for courier work and for those vehicles not fitted with reversing cameras. The new diesel crew van has seating for five people, with a three-person

second-row bench added to the two front bucket seats. When the seats are not required, they can be tipped forward to stow neatly behind the front seats, expanding the available cargo space – a nice feature for those using the van for work during the week and as a family van on the weekend. The crew van, in manual or auto guise, has sliding doors on both sides of the cargo area and is offered exclusively in the HiAce range with the option of a new exterior paint colour, Ink (black). Toyota has also added an ‘Eco’ lamp on the HiAce instrument cluster to encourage economical driving. Other improvements include slide adjustment for the front passenger bucket seat instead of the previous fixed seat. As competition heats up in the growing van segment, standard features on the HiAce now include a reversing camera where the image displayed in the electro-chromatic rear-view mirror, as well as anti-skid brakes and cruise control – some of which are still optional on competitor products. Other features that are supposed to make the HiAce more attractive in the race for market leadership include power operated mirrors, front windows and door locks, an LCD Multi-Information Display, hands-free telephone operation and voice activation for the audio and phone. Toyota Australia 1800 869 682 www.toyota.com.au manmonthly.com.au

Trucks,UTES+VANS

Pocket rocket

Following on from the solid performance of its V80 van at 3.5 tonnes, LDV has come up with a nippy little three-tonne van that is great fun to drive. Tim Giles takes it for a spin.

E always knew it was going to happen. Someone in Australia would work out how to talk to the Chinese vehicle manufacturers and get the right specification for the right job, at the right price. Once the combination of low cost base van making and a sound knowledge of the Aussie market kicked in, the van buyer here would pick up some bargains. The LDV G10 is a threetonne van in the mould of the Mercedes Benz Vito, to which is has an uncanny resemblance, but probably a lower safety rating. Power comes from a energetic little two-litre petrol engine poking out over 220hp (165kW) and generating 330Nm of torque. Energetic is the word. There seems to be no stopping this driveline, with a typically smooth ZF six speed auto handling the gears. From the driver’s seat, the experience is seamless. Jump in, put the key in the ignition, engage drive and go. The speedo and tachometer are directly in front of the driver, as is a very clear and concise LCD display, on this occasion set to show a digital speed read-out. Cruise control and radio volume are controlled from the steering wheel. The seating is very comfortable and the driver position works well. In the space between the seats there is a small tray fitted to the floor. Although it looks a little incongruous, it actually proves to be a great place to keep a work bag. Driving the G10 is a very car-like experience this is reassuring for a car driver manmonthly.com.au

moving up in vehicle size. It feels like something designed as a people mover and reconfigured as a van, and not the other way round. The rear view mirrors are basic and if this van was working as a busy urban delivery vehicle, a couple of stick-on blindspot mirrors wouldn’t do any harm. The G10 is drivable, easy to manoeuvre and this model is fitted with an excellent reversing camera. The large grab handles on the A-pillar are obviously an LDV

thing, as they were also evident in the larger V80 model. This van also has modern technology like bluetooth connectivity on board. The air conditioning controls look flash, yet in a typically Chinese way: The air conditioning appears to have more functionality than it actually has, as only four of the eight buttons actually do anything. It’s also unclear what function the driver’s seat armrest performs. Of course, it is a Chinese van and does have some

quirky, hard to explain elements. In the G10 there are these superfluous quarter lights in front of the doors at the foot of the A pillar. In the Vito these are an aid to visibility, in the G10 they seem to be there for aesthetic reasons, you can’t see anything useful through them as the bulbous dash fills the available space. However, this is a goods vehicle and the van feels sure footed and stable when loaded with half a tonne. There is no cargo barrier on

the model tested, but there is also no booming sound from the cargo space. Again, as with the LDV V80, this is a straightforward van able to handle the task and doesn’t look too bad. The powerful little engine makes it fun to drive and the price is bound to gain it some fans. It certainly looks like LDV may be here to stay. LDV Australia 1800 709 832 www.ldvautomotive.com.au

Manufacturers’ Monthly MAY 2016 37

TransportMANAGEMENT SYSTEMS

Connected Cars: Mitigating the risks to reap the rewards By Andrew Brockfield

ERFORMANCE and reliability have been the cornerstones of every successful car brand since the birth of the automotive industry. As important as they are, individual brand qualities—think: Ferraris winding their way across Monaco or a family of four belted safely inside their Volvo—mean little if a vehicle cannot consistently perform as it should. With the rise of in-car connected services, such as entertainment, navigation systems and safety features, the same expectation for performance and dependability is quickly shifting into the realm of software and connectivity. Manufacturers will need to ensure that their connected services are just as reliable as their vehicles’ engines and airbags. While Australia is getting out of making cars, the connected motoring trend matters to every business that’s involved in the industry in after-market and other ancillary ways.

38 MAY 2016 Manufacturers’ Monthly

With a quarter of a billion connected vehicles expected to be on the road by 2020, connectivity will be a primary area for growth in the car business, and players must be equipped to provide an array of reliable services that meet the demands of customers.

Great opportunities, great risks The increase in connected services means both great opportunity and great risk for carmakers. Any company still standing in the competitive space of car manufacturing has already weathered a variety of storms. They must now also meet this challenge head on, or risk being left behind. Google and Apple, for instance, have both turned their attention to connected car projects, meaning companies with a strong heritage in technology will also be competing for a slice of the market. As a result, car manufacturers have been racmanmonthly.com.au

ing to form partnerships with major telecoms and technology providers to ensure they have the tools to stay on top. Audi recently announced a deal with Huawei, China’s largest telecoms company, to provide in car connectivity, and Ford has partnered with Microsoft to provide cloud-based in-car services.

Getting infotainment services right Infotainment services will be one of the biggest growth areas for car manufacturers. For now, most infotainment services will take the form of integrated systems that connect to the user’s smartphone in order to instantly transfer their personalised apps to the car. But in the near future we’ll see everything from advertisers who run targeted ads based on a car’s location to streaming services that play music to match the scenery. With so many possibilities, it’s no wonder automotive manufacturers and technology partners are battling to become the best at supplying these new services. There are a huge number of factors involved in these integrated infotainment systems—including the in-car technology, the phone’s operating system and the performance of the smartphone app—and providing a positive user experience depends on a seamless integration of them all. Yet Consumer Reports’ 2015 Annual Auto Reliability Survey found that problematic infotainment systems are amongst the top issues reported by new car owners. With applications constantly being updated, issues of compatibility are bound to arise as new updates are released, but if it becomes a regular occurrence both the app developer and car manufacturer risk consumers’ dissatisfaction. It is critical that all parties involved have visibility into their applications down to the code level. By implementing application performance monitoring for example, developers can identify compatibility complications immediately and send fixes to their applications online, solving any bugs contained within apps long before the consumer even notices manmonthly.com.au

them and allowing the services to perform effectively at all times.

Safety leaves no room for error

Advances in safety features are among the most promising and impactful changes connected cars will offer. When speaking about their work in the autonomous driving space, Volvo points to fewer traffic accidents, injuries and fatalities as being extremely important considerations. This is an area where manufacturers and technology partners have no room for error. Companies that fail to implement safety systems effectively could face enormous reputational or even legal damage, to say nothing of the human toll. Any glitches or security breaches of these safety systems will simply not be tolerated and could prove disastrous for carmakers and technology providers. Safety features must come in the form of embedded systems containing the hardware, software and connectivity functions required in one unit. Car manufacturers can then ensure that safety devices within vehicles are ready to be activated if needed. By using firewalls that separate safety devices from other, less essential functions on the network, manufacturers can prevent any superfluous glitches from placing these essential mechanisms at risk.

Embracing a new era of performance In some ways, one might say consumers’ expectations for car manufacturers have changed very little—they still expect consistent performance and dependability above all else. That expectation has simply been extended to include connected services. As a result, there can no be such a thing as a reliable vehicle with unreliable connected services, in the consumer’s eye. Carmakers stand much to gain if they can pair technological innovations with the performance credentials that have long been key to their success. [Andrew Brockfield is the Australia & New Zealand Country Manager for AppDynamics, Inc.] Manufacturers’ Monthly MAY 2016 39

AdditiveMANUFACTURING Developments in 3D printing and associated software will empower hospitals and communities to fabricate, rather than buy, many of their solutions. Brent Balinski spoke to neurosurgeon, inventor and founder of Anatomics Dr Paul D’Urso about making healthcare personalised, as well as faster, cheaper and better.

A view from the frontier: turning hospitals into factories

HE next decade will see a revolution in healthcare, with everyone better off except for global manufacturers of “off the shelf” devices and implants. That’s the opinion of Dr Paul D’Urso, leading neurosurgeon, inventor and founder of Anatomics. “Every aspect of medicine will be affected by this technology in a positive way,” he said, referring to the growing use of 3D printing in hospitals for patient-specific applications, something the Australian surgeon has led the world in. It will play an important role in the increasing personalisation of healthcare, alongside things such as connectivity, big data and wearable devices. D’Urso, who spoke to Manufacturers’ Monthly recently between surgeries at the Epworth Richmond Hospital (he performs roughly 500 operations there a year) saw the future when he was exposed a stereo40 MAY 2016 Manufacturers’ Monthly

lithographic 3D printer in 1991. He saw that there was important work to be done in turning CT data input into additive manufacturing output. Stereolithographic biomodelling proved enormously useful in producing anatomical models for purposes such as communication and preparation for surgery, and in creating custom implants. “I just stepped into a whole frontier of unexplored medicine,” he explained of the work, which became the subject of his PhD research. “It was really kind of difficult when I first started in 1991 with 386 computers and very limited internet and so forth,” he explained. “But now it’s easy - [you can] do it on your iPhone, virtually.” This played a role in pioneering surgical work, including in operating on deformities and, more recently, several titanium implant world firsts. “Everything I did was new, every-

thing I touched was a world first, and so it was just like that.” A wealth of untapped potential lies in using the technology for “community-based personalised medicine”, a topic on which D’Urso presented at the Inside 3D Printing conference this month. Transport, logistics, inventory and other costs will be taken out of the picture, according to the model, involving creating implants and other structures at the point of use. There have been many predictions made about the impact of additive manufacturing on supply chains since it became a popular topic. D’Urso’s thesis suggests that, as with other applications, bringing production closer to the point of consumption will reinvent the way many businesses run. Completely custom prosthetic implants made in community hospitals would be horrid news for the big implant manufacturers, such as Du

Puy Synthes, Medtronic and Stryker, which announced in January that it would invest heavily in a new metal 3D printing facility. “So all of the logistics and inventory and waste that we can’t afford in healthcare now is gone - it disappears. But what does Stryker get now, out of this?” D’Urso asked. “They get very little, because all they’ve got is a CAD design. That’s all they’ve got. Their whole manufacturing site and logistics and inventory and all that - that’s all gone. We don’t need those any longer.” Metal additive manufacturing is predicted to have a huge impact in the biomedical world, with huge design flexibility and the biocompatibility of titanium making it an obvious application. A very popular early application for titanium 3D printing has been acetabular hip cups. In Australia, Anatomics (often manmonthly.com.au

with frequent collaborators the CSIRO and RMIT) and D’Urso have been involved in numerous metal implant world-firsts in the last two years. These include a titanium heel bone that saved a bone cancer-sufferer’s leg, a titanium sternum-and-ribcage combo for a Spanish chest wall sarcoma patient, and an implant to replace a portion of a patient’s spine suffering from a chordoma. What the surgeon gets most excited about now, though, is the new AnatomicsRx company, which is developing software architecture to spread the ability for “online engineering”, essential for the community healthcare vision. “Now we can link everything up and hospitals and schools can integrate that 3D printing technology in their own facilities,” he said. “We can use all of our knowledge base and experience and actually put it directly into the facilities and they can make things for themselves. “So now hospitals can make things and we can reduce the cost and we can actually give money to the hospitals to make it, we can employ people in Geelong or Wollongong to do that work, we can allow doctors to create things again.” The vision of every hospital as a factory is an exciting one, though has some way to go. And with healthcare costs seldom far from the news, it’s bound to at least be of curiosity to policymakers. Anatomics, the CSIRO, and a network of several Australian hospitals

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and universities are planning a threeyear trial of the 3D printing-based community personalised healthcare model. Realising the vision will require regulatory and reimbursement structure changes, D’Urso said, and urged the federal government to see the merit of hospitals that make things. “[Prime Minister] Turnbull talks about the $1 billion innovation policy

Metal additive manufacturing is predicted to have a huge impact in the biomedical world, with huge design flexibility and the biocompatibility of titanium making it an obvious application. as he holds our 3D printed titanium ribs at CSIRO and launches his policy, okay, well now’s the time for the government to come back and support us,” D’Urso said. “They’re talking about it, that’s fine, and this is my mission, but really we need federal support and the federal leadership to move forward with this initiative. And then we want to take it to Singapore and the USA.”

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Innovation The Innovation Statement and Manufacturing:

What should the industry expect in 2016 and beyond? By Barry Thomas

HEN Malcolm Turnbull outlined the National Innovation and Science Agenda in December last year, he got people in industry talking - from big businesses to budding entrepreneurs. The statement signalled a shift in focus at the federal level - one that is expected to resonate across Australian state governments, industries, communities and cultures. The Agenda is essentially encouraging businesses to take risks, and to innovate. It outlines the promise of some serious funding to support this. The Government should certainly be commended for this forwardlooking approach and for this first step in encouraging innovation in Australia. Now that industry has had a couple of months to digest the detail, it’s time to ask: what’s in it for manufacturers? Below, I outline some of the key points in the Agenda and assess them based on how they might impact manufacturing.

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ment of the solution. We need to be part of the solution by also supporting initiatives that promote equality in the workplace. For example, departing from traditional workplace practices and considering flexible manufacturing workplace arrangements. At Cook Medical, we’ve found it helps us to maintain and grow our talented employees through various life stages. The Innovation Agenda will hopefully mean more women qualify, but it’s up to us to also support successful participation in the workplace.

More women in manufacturing The Innovation Agenda’s push to get more women involved in Science, Technology, Engineering, and Mathematics (STEM) should open many new doors for manufacturing - an industry where men currently outnumber women 3 to 1. As part of the Agenda, the government has committed $13 million to boosting

Greater research-industry collaboration and overseas networks the participation of girls and women in STEM. While we’re yet to see the detail of how exactly this funding will be spent, the development of initiatives prioritising women is an indication that we’re at least heading in the right direction. However, as businesses, it is vital that we don’t see this as the only ele-

The Agenda includes an increased focus on collaboration between industry and universities over the next five years, aiming to propel industrial and technological research to the forefront of the Australian economy. This is a necessary step, but one that may sound a bit familiar to those of us who have been in the industry for long enough.

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Further, the Agenda outlines the aim to strengthen connections between Australian companies and potential international investors or partners. The Global Innovation Strategy, in particular, has been developed to create more of an open-market approach for Australian businesses. The Government has committed to investing $36million in this global approach over the next five years, and also aims to set up ‘landing pads’ for Australian entrepreneurs in innovation hotspots like Silicon Valley and Tel Aviv. This should mean Australian manufacturers can more easily establish networks of contacts with overseas companies, which will ideally result in the development of more businesses and more opportunities for Australian manufacturers to rise to prominence. It’s an idea with merit, but it also encourages the movement of innovation offshore. What are we doing to help ensure that commercialisation is still viable here in Australia?

Getting ideas off the ground Another key part of the Innovation Agenda outlines the new means of support being planned for upcoming Australian businesses, dubbed the ‘Incubator Support Program’. The program commences 1 July and aims to give startups a head start, with greater access to research and mentorship programs. Startups are known to work better when they are given opportunities

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to collaborate, as well as give and receive support from peers. This government-provided support for startups entering the manufacturing space will hopefully assist the future of the manufacturing industry, as today’s startups develop and innovate for tomorrow. We think there is merit in this sort of idea as long as the recipients are

The Innovation Agenda appears to leave internationally successful manufacturers behind... carefully identified. At Cook Medical, we’re running an incubator-style initiative for innovation within the industry in the form of the Australia’s Asia-Pacific New Technologies Team (ANTT). ANTT is made up of engineers, senior management and business directors tasked with identifying medical device innovations from across the entire region with potential for commercialisation that can further enhance patient care worldwide. The program is focused on taking new ideas from the infancy stage and turning them into commercially viable manufactured products. The Government’s Incubator Support program will need similar industry experts in relevant fields

to ensure that commercially viable ideas receive support.

Leaving the big players behind While the Innovation Agenda focuses on providing the building blocks for future businesses, it appears to leave Australia’s own internationally successful manufacturers behind. The bulk of the statement only prioritises the early stages of business development, missing an opportunity to support existing established manufacturers - those established businesses that won’t necessarily benefit from a hub in Tel Aviv or an incubator support program. In all the excitement around startups, the government should not lose sight of the manufacturers that are beyond the initial stages of development, yet still require support for continued growth and to safeguard their future in Australia.

Next step for manufacturers Australia has one of the world’s highest company tax rates. Intellectual property (IP) is highly mobile and with such a high tax rate, IP developed in Australia is vulnerable to being exported to another jurisdiction for commercialising and manufacturing. Once a manufacturing operation has been set up overseas, it is much harder to reverse that decision and bring the production back to Australia than it is to preserve and and grow operations in Australia in the first place. This is a missed opportunity in the

Innovation Agenda. A report by the Australian Advanced Manufacturing Council (AAMC), released in December last year, found that Australia is losing ground in manufacturing to escalating international competition. The report states that Australia must dramatically change its corporate tax and innovation incentives landscapes in order to stay internationally competitive. The Australian Innovation and Manufacturing (AIM) Incentive, which is based on the UK’s Patent Box system, has been put forward as a potential model. It has been developed by Cook Medical Australia together with other industry bodies including AusBiotech, Export Council of Australia, and Medical Technologies Association of Australia. The Incentive, which fits with the OECD’s recently released recommendations regarding base erosion and profit shifting, recommends that qualifying IP profit be taxed at a lower rate (10 per cent is suggested) in order to retain innovation for commercialisation here in Australia. While the Government’s Innovation Agenda is a solid first step towards fostering innovation and improving the outlook for industry in Australia, there is still more to be done to boost manufacturing. I look forward to seeing innovation be converted from a buzz word into tangible changes in the industry. [Barry Thomas is Cook Medical Vice President, Director - Asia Pacific and Managing Director of Cook Australia]

Manufacturers’ Monthly MAY 2016 43

SteelMAKING From Iron to Dragline Ben Hagemann continues his twisted tale of a seemingly ordinary factory visit to one of the oldest steel wire rope factories in the northern hemisphere.

S a former construction rigger, I was certainly interested when offered the opportunity to take a tour of one of the oldest wire rope factories in the United States, but little did I realise just how emotionally varied my reaction to the place would be. They say you should “never visit the sausage factory” but I couldn’t disagree more. It’s a little bit like when you find out where babies come from: Horrifying and weird to begin with, but before long you’ll be utterly fascinated with the process. The Wirerope Works factory in Williamsport, Pennsylvania has a long history of producing one of the most essential components of progress in the 20th century. Although cheaper imports from China and India continue to flood the market, the caretakers of the Bethlehem Wire Rope brand are still proud to produce a product of the highest quality on local labour and materials. I arrived at the factory with a junket of journalists, exhausted from touring a gamut of other factories in the region for several days, and fighting off a vicious head cold, so perhaps one could have forgiven me for being a little bored at first. But not for long… Walking into the front offices of Wirerope Works on Maynard Street, it’s clear there’s pride in the product here. Foot-long samples of rope in varying configurations and gauges lie on polished timber plinths in the foyer, cleaned of oil with sharp edges ground smooth for safe handling by visitors. On the walls hang photographs of major construction projects which were supplied with Bethlehem brand wire rope: Madison Square Gardens, the restringing of the Brooklyn Bridge, the Niagara Falls tightrope. Our hosts are all of a distinguished vintage, and they usher us into an opulent but small boardroom, resplendent in walnut lining (I’m later informed it’s faux timber) with a long table and large sumptuous leather chairs. I can tell they’re pretty excited to have us here. There’s a distinct chemistry between these guys, a lot of joking around and backhanded compliments: They’ve worked together for a long time. Lamar J. Richards, the executive vice president of Wirerope Works, explains to us some of the history of the plant (see Australian Mining February 2016), but one of the most touching stories he tells us is about how the present owner, Tom Saltsgiver,

44 MAY 2016 Manufacturers’ Monthly

came to buy the company and keep it alive for the sake of the local economy in Williamsport. The owner of a successful modular housing manufacturing plant, Saltsgiver picked up the Bethlehem factory while it was in some very dire straits, and did so against the better advice of friends, family and colleagues, according to Richards. “There was an effort by local people to see if they could put together a coalition to buy the company and keep the manufacturing here in Williamsport,” he said. “The concern was that with a competitor buying there was a good chance we would ultimately be folded up and moved. “In trying to put together that coalition [Saltsgiver] came in for a tour and went through the place, and then he indicated that he was interested in buying. “He had the financial wherewithal to do that because the business he was in at the time was modular home building, and he had a plant about 20 miles from Williamsport. “Back in 2003-4 housing growth was going great, and he had this financial business and he had the ability to get financing without any question. “In the face of us being in a tough market, under the previous ownership we were undercapitalised. We didn’t have two pennies to rub together, and in the face of that our current owner stepped up, bought the place and put up working capital to keep the place running.” Inability to secure raw materials meant many workers had to be laid off, and upon purchase the company called up 88 people to come back to their jobs. About a year in from the purchase, Richards explains, Saltsgiver invited staff for a dinner with him and his wife. “Our owner is extremely laid back, you would never think he was the owner of companies, or that he’s a multi-millionaire,” Richards said. “So we go to this dinner, and my predecessor asked Tom to get up and say a few words, so he gets up and he says, ‘So I guess you folks would like to know why I bought this place?’ and we all sat there and said ‘Yes sir, we would’.” So Saltsgiver tells the story: “Well, when I was looking at it to buy it, all my friends in the area who knew about the business said, ‘Don’t even think about it, don’t even think about it, it’s a bad deal’.” “My financial advisors all looked at it and said

that’s a disaster, don’t touch it. “And my family, they said, ‘We don’t know anything about the steel business, don’t do it, we know modular homes we’ve made a good living doing that, don’t throw your money away here’.” Richards said thus far it looked like three strikes, and surely that would have been the end of it for the prospective buyer, but he continues: “and this stuns me to this day, because he said: ‘I prayed about it, and I felt that God had answered my prayer and told me to proceed’.” As it turned out, the newly renamed Wirerope Works became profitable after 18 months of capital support. Shortly after that, the housing bubble burst. “It’s not often you’ll find an individual who’s willing to gamble millions of dollars based on his faith,” Richards said. After this brief history lesson we are handed hardhats and earplugs and instructed that it will be very difficult to hear anything inside the factory. They weren’t wrong. Although the tour from that stage onward was sparse on information, I found myself going from a sense of bewilderment at the extreme conditions of the workplace to being strangely entranced with the manufacturing process. One of the first things shown to us is the floor. The factory is tiled with timber bricks, grain pointing upward and creating a very unique effect where the timber had been polished by decades of wear. The timber floors are a result of Williamsport’s logging history, when wooden blocks were cheap and readily available in bulk. To this day when any flooring needs repairs or replacement, Wirerope Works still uses the original material. To manmonthly.com.au

walk on it is remarkably different from concrete, and where I can compare the two it is noticeably easier underfoot. Bear in mind the factory is 620,000 square feet, so a lot of what essentially was scrap lumber had been put to good use. First we are shown the raw material: 4mm steel wire in loose looking coils about 6 foot across, lifted by forklifts and taken through to a hydrochloric acid bath which will strip off any contaminants. Having been battling a common cold for a few days, I didn’t need to be told the fizzing pool before me was acid. Plumes of vapour were pouring off the bath, and before I could think of doing anything about it the congestion in my head loosened and poured down the back of my throat, and I suddenly I could breathe more clearly and easily than I had done for days! I realised it was the corrosive vapour that had cleared my head, and it might soon start to work on the tissues of my sinus. I tried to hold my breath while our host laughed and tried to explain, incoherently over the roar of the factory, the process of treating the raw material. A small crane cabin with a lifting arm, fronted by glass and inhabited by a doleful looking man, runs back and forth along the length of the acid pool, picking up the large coils out of the bath and moving them down the line, gradually shuffling each one over the course of hours before they were considered clean enough to be taken for heat treatment in the furnace. The operator did not wear any respirator or breathing apparatus, and I wondered if it were possible to build up a tolerance to acid fumes, or did it just slowly eat away at one’s alveoli? He’s still working here, I supposed. We all back away from the deadly head-cold cure and are led to the furnace, where 12 of the washed coils are set up to feed wire through an oven blazing at 1000 degrees Celsius, only 360 degrees shy of melting point. I realise wearing my jacket, despite the cool Pennsylvania humidity, was not the smartest thing in the world to do and we walk past the contained inferno, pouring with sweat. It’s becoming amply clear to me that this is an extremely dangerous workplace, and we continue to the other side of the furnace where the cherry glowing wires are fed down into a simmering oil bath for quenching. We file past, only a couple of feet from the long vat of hellbroth with no rails or guards and I think to myself, ‘this must be the single most dangerous thing I have ever stood near’. Having been a labourer and rigger for most of my adult life, I have certainly worked in some unsafe conditions, from high rise buildings with no fall arrest equipment to a uranium mine with no proper PPE, but even those experiences didn’t seem to come close to standing next to this long vat of near-boiling oil. What would happen if one of us stumbled, reaching out for grip and finding only oil that could burn off a limb in seconds, or worse, what if one manmonthly.com.au

could fall in altogether! I reassured myself a victim of clumsiness would pass out almost instantly from the shock of the burn. Small comfort as we tried to stay as far away from the vat as possible, with a few feet of leeway for space. Once cool enough, the wire passes through hydrochloric acid to wash off all traces of contaminant, and I hold my breath as we walk the length of the pool, our host taking deep breaths as if it were fresh spring air and not lung melting fumes, laughing as he watches the visitors squirm… Does he know something I don’t? I sure hope so. A coating of zinc phosphate, another rinse, and another final coating prepares the wire for extrusion, which has two key functions. The most obvious is for achieving the correct gauge of wire required for twisting into the various rope products, but extrusion also means the steel wire is stretched to align the moleculs of the steel in a single direction, which strengthens and increases the breaking strain of each wire. However, the most important part of all of this is the stranding process, and here is where my reactions turn from shock to awe. As a rigger using steel wire rope on a daily basis for slinging, I had often wondered how the rope was produced, and here it was before my eyes: The factory floor - acres of it - was full of lines of planetary stranders, all with sets of wires in large bobbins, as many as 64 wires on a single machine, feeding into a single, oily strand of rope. The factory had machines of all sizes hard at work, furiously spinning to produce the some 1200 different combinations of wire rope that come out of the factory every three months. Later that evening I met a local teacher in a

The 7 inch rope is commonly used to fit out draglines for surface mining.

Finished 7 inch product ready to be fitted with end terminations for use as boom pendants. bar who tells me about a worker he knew of who was dragged into a strander and ripped to pieces. I didn’t need to be told this was possible; that much was obvious. But my bewildered reaction to the hazards in this workplace was quickly being replaced with a gripping fascination for the manufacturing process. We’re led past rows and rows of finished product on massive timber spools printed with the Bethlehem logo and our guide Norm Szamocki, director of operations, screams at us that this is the product they affectionately refer to as “Tank Yank”, their product which is used by the US military to kit out their M88 Hercules recovery vehicle, usually deployed for rescuing incapacitated tanks. This is the same machine and cable that helped the people of Iraq to drag down the Saddam Hussein statue in Firdos Square, Bagdad, an event in which the people who manufacture Bethlehem wire rope were proud to have a hand. Finally, we come to the heart of the factory: We stand, astonished, gazing up at the 12 foot tall, 800 tonne closing machine, designed to produce the 7 inch rope for dragline boom pendants, and construction cable like that used to build the Brooklyn Bridge. The already huge strands are all dragged into a central point, slowly weaving the helical pattern of wires around a hefty centre rope into a single massive cable which will one day end up on a dragline somewhere in the world. The whole process is mesmerising, and it occurs to me that this place is like a Disneyland or Mecca for riggers. It’s a real privilege to see how this is product made, the effort that goes into ensuring the finest quality product is produced for a discerning market that eschews the cheaper overseas manufacturers. With a history spanning 120 years, the Wirerope Works factory has seen plenty of hard times, but it’s also had a lot of luck. Together good leadership at the helm from the likes of Saltsgiver and Richards, and ongoing demand for steel wire rope, the old Williamsport factory could continue to produce its quality bespoke products for another 120 years. Manufacturers’ Monthly MAY 2016 45

Supply chain& LOGISTICS Supply Chain Automation:

A Secret Weapon or Futuristic ideology? To remain competitive in the manufacturing, warehousing, distribution and storage sectors, organisations must take advantage of the latest technology. Automation of material handling is one area of innovation that has proven to be vital in mitigating operational risk, improving efficiencies and remaining competitive, write Amit Asthana and Charles Edwards.

HAT automation processes are applicable to your organisation? What are the potential benefits, the limitations and critically, the investment requirements?

Introduction Over the last few years, an increasing number of companies have chosen to automate their operations. The $USD152 billion global industrial automation market has grown at 6 per cent per year for more than a decade, which is nearly twice as fast as the overall industrial production growth rate. Automation technologies can significantly reduce reliance on intensive and repetitive labour; leading to safer workplaces, increased throughput volumes and reduced expenses. Due to these benefits, and the lowered costs of implementation, more manufacturing, warehousing, distribution and storage companies 46 MAY 2016 Manufacturers’ Monthly

are turning to automation technologies to innovate their organisations.

Safer Workplaces through Automation The implications of improved safety under automation are significant, especially considering the Australian warehousing and transportation industry has the second highest number of fatalities and serious injury claims per year compared to other industries in Australia. Some of the most common OH&S risks in the manufacturing workplace include: • Accidents by mobile plant equipment • Falling objects • Lifting and repetitive bending (manual picking and put-away) • Slips, trips & falls Though enhanced processes and procedures can reduce the likelihood and impact of some of these risks, they

cannot eliminate the risks altogether. However, automation technologies can re-engineer operations to eliminate entire categories of workplace risks. Automated systems are typically capable of determining when there is an obstacle in their path and alter their course. Unlike humans, they never get tired, never get distracted and provide the same reliable service 24 hours a day 365 days a year.

The Automation Technologies of 2016 In 2016, the four predominant categories of manufacturing and warehousing automation technology include: 1. Automated Guided Vehicles (AGV) 2. Automated Storage and Retrieval Systems (AS/RS) 3. Automated Truck Loading Systems (ATLS) 4. In-Line Conveyor Systems All categories offer the same benefits but to varying degrees of magni-

tude. They all deliver improvements in safety by reducing human physical interaction and mobile plant usage, while improving production throughput and reducing operating costs. This section provides a review of each of the automation technology options available to the innovative organisation in 2016. 1. Automated Guided Vehicles (AGVs) AGVs can transfer stock between defined locations within a facility, effectively replacing manually driven forklifts. AGVs can be small – delivering mail around the office – or they can be enormous and invisible to the public eye – moving airplane wings between hangers. Often they appear not to dissimilar to a tradition forklift. AGV technology has been around for some time but has developed rapidly over the last decade. Today AGVs are entirely autonomous, capable of taking alternative paths when manmonthly.com.au

Supply chain & LOGISTICS obstructed, providing automated put-away and unloading trucks. GRA research indicates that during operating times, one AGV is approximately equivalent to one forklift driver. Together with a wellintegrated Warehouse Management Systems (WMS), AGVs can completely automate the warehousing process. Organisations with warehouses which are already running on three shifts, high volumes and with low margin products have the most to gain from AGVs which can improve operational efficiencies and drive down costs. AGVs are already used to manage pallets at Coca-Cola, massive shipping containers at the Port of Hamburg, assembly parts at Tesla and millions of dollars in the US Mint. The potential applications are endless as AGVs are only restricted to what they are programmed to do. Any application of AGVs needs to also consider the requirement to recharge or ‘swap-out’ AGV batteries every 12 hours, this procedure can also be automated. 2. Automated Storage and Retrieval System (AS/RS) An AS/RS can autonomously store pallets and packs using automated gantry cranes. These systems are more commonly seen in quick turnaround distribution centres. Compared to facilities with traditional racking systems, an AS/RS is capable of improving space utilisation by at least 60 per cent. These systems eliminate any potential safety hazards from within the storage facility and provide enhanced visibility of pallet locations. Long-term benefits include reduced site costs from facility consolidation. However, an AS/RS is unfortunately quite expensive. A case study by GRA found that positive ROI does not occur for at least five years. Additionally, these systems are not entirely suitable for bulky and odd-shaped products. Further customisations may be required to suit your product range, which can pile on to investment costs. However, constructing a warehouse from scratch together with an integrated AS/RS significantly reduces overall installation costs. manmonthly.com.au

Given the expensive investment costs, AS/RSs are more feasible for high-stock turnover distribution centres where throughput can be significantly improved with automation that works 24/7. 3. Automated Truck Loading systems (ATLS) ATLS are a recent technology which stacks and arranges pallets to resemble a full truck load. When the pallets are ready for shipment, they are transferred ‘as is’ into a truck through a mechanical platform that either rolls or pulls the load into the trailer via a chain-driven conveyor system. This system is obviously limited to only enhancing the truck loading and unloading process, however its benefits in this area are noteworthy. Trucks only need show up when a load is ready to be taken (“Just-inTime”) and truck loading time is significantly reduced. GRA research indicates that an ATLS is capable of reducing the truck turn-around period for some organisations from over one hour to just a few minutes, cutting this process by 95%. These systems give the manufacturer greater flexibility, improved space utilisation by reducing the number of loading bays and reduced safety risks in loading areas. 4. In-line conveyor systems Conveyor systems remain the most common and are generally the cheapest automation systems to implement in 2016. Using fundamental industrial engineering concepts of pull manufacturing, in-line conveyors can be implemented to automatically deliver stock downstream as and where required. These systems eliminate the requirement to store excessive stock in WIP areas which take up expensive real estate and negatively impact working capital. In line conveyor systems reduce flexibility and do not provide an automation solution regarding storage or despatch. These systems often require at least some human interaction to complete storage functions. Previous GRA research indicates that in-line automated routing conveyors can provide a positive return on investment in under two years.

Automation is here and it’s feasible GRA recently completed a feasibility study assessing the potential of the four automation concepts for a timber company that produces construction timber in bulky pack sizes. The client’s internal production flow was assessed to develop an ideal solution that would help them reduce safety hazards across their warehouse operations. The study found that AGVs provided the best value for money, delivering a positive ROI within three years. As shown on the adjacent figure, AGVs alone were the most cost-effective solution capable of running transfers within internal WIP workflows, completing put-

aways and delivering loads to the dispatch area. The outlook for automation is positive, with the above technologies rapidly advancing, costs of implementation reducing and scales of application growing. Nonetheless, there remain some constraints to automation in 2016, including the hefty initial investment outlays and ongoing maintenance and engineering running costs. Specialised technologies will also often require skilled operators and maintenance personnel to minimise system downtime.

The Impact of Automation of Jobs Debate is often sparked that automation takes jobs away from those within the manufacturing industry,

this argument can prove a road-block for major organisations. Though it is clear that a number of manual jobs will be replaced by machines, a recent disruptive manufacturing innovations survey in 2014 demonstrated that approximately 70 per cent of respondents believe robotic automation will actually provide more jobs on the whole from organisation growth and demand for skilled operators and engineers. Indeed, following the release of Kiva Systems, Amazon actually hired 61,000 additional employees.

Conclusion Automation technologies improve safety, reduce costs and increase throughput. These technologies are not a futuristic ideology, they are

here today and with a medium-term outlook the purchase price is justifiable. It is very likely that at least one of these automation technologies can enhance the way you operate your business and drive new found profits and competitive advantage within three to five years. Amit Asthana Amit has experience in the manufacturing/operations industry which includes Pharmaceuticals, FMCG, Packaging and SME operations in Australia. Charles Edwards Charles is a consultant with GRA based in Melbourne. Charles’ previous clients include the Defence Force, MROs and ASX listed retail businesses within Australia. Manufacturers’ Monthly MAY 2016 47

What’sNew Greases combat downtime and costs ROLLING bearing damage can lead to significant downtime or costs, and is almost always caused by improper use or maintenance. Schaeffler’s research has found that over 40 per cent of rolling bearing damage is caused by inadequate lubrication. To eliminate any lubrication issues and further optimise bearing performance, Schaeffler has introduced its range of high quality Arcanol greases, which provide rolling bearings with a longer operating life, favourable running

behaviour and high operational safety. Arcanol greases are specifically designed for rolling bearings in a wide range of industry applications, including electric motors, gearboxes, pumps, compressors, fans, linear systems, conveying equipment and machine tools. Rolling bearings are used in some of the most essential machinery to operations in mining and energy, bulk materials handling, manufacturing and materials handling, and oil and gas operations, where extending service life and avoiding

Specifically designed for rolling bearings.

downtime caused by premature failure are highly important. The Arcanol range is designed around optimising performance and minimising premature failure of important machinery, according to the company y. By using the highest quality greases and oils and relubricating at the correct intervals, bearing life and performance can be greatly extended.

Schaeffler Australia 02 8977 1000 www.schaeffler.com.au

Mechanised robotic welding range KEMPPI, a leading international welding equipment manufacturer, has released a new range of mechanised and robotic welding systems. These can be combined with Kemppi WISE software processes to increase productivity several hundred per cent

48 MAY 2016 Manufacturers’ Monthly

when compared to manual welding, as well as ensuring greater continuity in weld quality. Simple to operate and userfriendly, the Kemppi Mechanised Welding Systems empower the user with quicker welding and improved safely. Time and costs are reduced, not only because

the Systems improve the speed of welding, but also because the need for rework is diminished. The wide range features

simple and compact battery powered systems to advanced professional solutions for multilayer welding of pipes and tubes. For those involved in Robotic welding, the new A7 Mig Welder 450 is impressive. This solution is designed for robotic arc welding and can be easily integrated

with any robot brand. It is ideal for any industry using robotic welding for mild steel, stainless steel and aluminium components. Kemppi Australia 02 8785 2000 www.kemppi.com

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Manufacturers’ Monthly MAY 2016 49

Review Sleek laptop for those who like their hardware light and easy Now that we are firmly into the era of the ‘ultrabook’ designed for those who need power but don’t want all that baggage for their serious work, Dell’s design gurus have well and truly answered your prayers with the Precision M3800, writes Branko Miletic.

ET’S face it - just like with athletes and cars when it comes to portable IT there has always been an uneasy compromise between weight and performance and on the issue of weight and size, Dell has claimed the M3800 is the world’s thinnest and lightest 15.6inch mobile workstation.

Slick and shiny with fast boot up Put another way, if you want a high-end laptop, capable of running processor-intensive software about as well as a desktop can, then you can expect to be carting around a couple of bricks worth of IT hardware. On the other hand, if you need a lightweight machine, you most probably will end up with lightweight performance, such are the limitations of not only Moore’s Law but also that of modern and lightweight material costs. Now along comes the Dell Precision M3800 laptop, a sleek, powerful and best of all, very light machine running on an Intel Core i7 quad core processor, paired up rather nicely with an Nvidia Quadro graphics card, with 16GB of memory. Best of all, all this power has been neatly packaged up in an aluminium chassis that’s just 18mm thick and weighs a comfortable 1.8kg. All this grunt under the hood means that it was hardly surprising that the M3800 had one of the fastest boot-ups of any machine-which is just as well as the laptop has been pitched to be both a consumer 50 MAY 2016 Manufacturers’ Monthly

speedster and a company workhorse. In fact, the M3800 has been tailor-made for designers, engineers, and many others who need a true mobile workstation that’s both equipped to handle punishing grade workloads while being very light to boot. Even the rubber matt-like keyboard is designed to be used where abrasives and/or unwanted compounds can land on the surface and otherwise cause scratches if it was made of metal. All up, loading programs like OpenOffice and huge picture

All this grunt under the hood means that it was hardly surprising that the M3800 had one of the fastest boot-ups of any machine. files along with opening multiple Windows was a breeze for the M3800, and while when it came to playing movies like Pacific Rim, the sound quality from the speakers, while not at Dolby 5.1 surround sound levels, was at the same time quite acceptable.

The slick features keep coming The M3800 we reviewed had a 500GB hard disk, and when it comes to the resolution, well this is really the machine that puts

the term ‘high’ into resolution. With a crisp and clean 1920 x 1080p-resolution display and a 720p webcam, plus two microphones for stereo-like audio, your webinars will once again become less of a chore and more of useful business tool. Some have said that the screen resolution of the M3800 is better than Apple’s new Retina display and while we cannot confirm nor deny this dare we say ‘eye-opening’ claim, it certainly is easy on the pupils after prolonged usage. But despite less-than-perfect wireless issues which may or may not have had something to do with the test wireless that we used, the combination of great performance, high-res display and really thin design for its size makes this machine one of the best Windows laptops on the market. As for the battery life, well, I wont hark on too much about this as the figures that most laptop manufacturers quote seem to emanate from some fantasy land and as such the M3800 battery was quite acceptable lasting just under 4 hours while playing a looped video.

What could be better? The only thing that the Dell Precision M3800 we tested lacked was decent software, which for this

Just the basic specs Processor: Intel Core i7 Windows 8.1 OS: Graphics: Intel HD Graphics 4600 + NVIDIA Quadro Memory: 16GB DDR3L 1600MHz DRAM Display: 15.6-inch UltraSharp Ultra HD 4K 2 x USB & 1 HDMI Ports: Storage: 500GB HDD Ethernet: Gigabit Ethernet via USB 3.0 adapter Battery: 61Whr (6-cell) non-replaceable more information, go to http://www.dell.com.au/ calibre of machine would have had to be de rigueur, or one would assume. Lets face it, Windows 8.1 is so 2014. Also, more than two USB ports would have been nice and maybe less stiffness in the opening and closing of the screen, but otherwise, the Dell M3800 should be on everyone’s mustsee list when shopping for a portable yet stylish workstation that can be used for both work and play. So its safe to say that Dell has come up with the goods for those that need a laptop to download large file sized geological surveys when they are working from their ute in the Pilbara or streaming the latest Netflix blockbuster at home on the couch in St. Kilda. manmonthly.com.au

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