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Behind the cover There is a movement to diversify the industry, and to retain more women across engineering, welding and manufacturing. The impact new technology and automation is having on advanced manufacturers is changing the skillset of the modern-day maker. It is a topic that this publication touched on in depth throughout 2017. In the New Year, industry advocates are seeking an upturn in female representation to meet this demand. However, where there is a will for change, the way to go about it is the next big milestone. According to a report by the Office of the Chief Scientist, less than one-fifth (16 per cent) of Australians qualified in science, technology,
engineering and mathematics (STEM) are female. The research also showed that seven per cent of engineers in Australia are women and is explained partway by women taking maternity leave not returning to the industry. In this latest edition of Manufacturers’ Monthly, we speak with thought leaders across Australia, who are taking different approaches. Among them, Keely Quinn, Canberra division manager for Engineers Australia, spoke about the issue at Autodesk University and described a “stark disconnect” between the country’s industrial and academic streams, and questions whether Australian industry is doing enough to implement change.
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Comment
SYED SHAH – Managing Editor, Manufacturers’ Monthly
Something Big coming our way
C
OMPETITION is fiercer than ever before as customers demand advanced services that involve just-in-time supplies, same-day delivery, and dynamic shipment routing. The Asia-Pacific is home to multiple global logistics hubs, including Australia which in 2016 was ranked in the top 20 nations out of 160 countries globally in the Logistics Performance Index by the World Bank. Urbanisation, the region’s rapid economic development, and the continuing rise of its middle classes are expected to propel the industry to greater heights, supported by the continuous international trade, which is projected to grow despite the collapse of the Trans Pacific Partnership plan. This growth will no doubt add more pressure to the continent’s logistical capabilities. With the increasing amount of activity mentioned, procurement strategies have to be re-looked at as the supply chain becomes ever more dynamic with a lot more information being floated around. Hence enter stage – Big Data. With analytics, businesses can improve on their existing models, or better still, innovate and introduce entirely new ones. The strong dependency of logistics operations on timely and accurate information is a key opportunity for Big Data to address. Optimising properties such as delivery time, resource utilisation, and geographical coverage is an inherent challenge of large-scale logistics operations. Information on payload, quantity, size, location and destination are required to control efficiency and service quality in a transport network. The logistics industry, already intrinsically dependent on information, therefore stands to benefit from advanced predictive techniques and real-time forecasting of events to provide a new quality in capacity forecast and resource control. In a report by The Australian in 2016, Amazon are saying that their Australian customers are interested in taking “full advantage” of their 6 FEBRUARY 2018 Manufacturers’ Monthly
entire Amazon Web Services (AWS) platform heading into 2017 — which they say includes machine learning, artificial intelligence, big data analytics and the Internet of Things (IoT). This is partly being driven by the proliferation of devices, including mobile, home automation, sensors and trackers. With an enormous number of devices coming into the market, there will be a huge corresponding increase in data collected. This could include capturing terabytes of data on aeroplanes when they’re in flight without having to be connected to the cloud, or capturing terabytes of data on ships to conduct increasingly more detailed surveys and create greater meaning through enhanced analysis, increasingly in real time or close to it. The McKinsey report How big data can improve manufacturing talks about how data can be a critical tool for realising improvements in yield, particularly in any environment (manufacturing or otherwise) in which process complexity, process variability, and capacity restraints are present. As a consequence of this, we’ll start to see a lot more innovation, whether that’s preventive maintenance in heavy industries like oil and gas, or transport logistics, or in healthcare. Until very recently, logistics companies were forced to rely on radio networks to maintain contact with truck drivers. Advances in technology now allow for touchscreen tablet devices that offer text based
communication and mobile network connectivity. With GPS technology, agents now possess round-the-clock, real-time insight into the location of vehicles and their cargo. The knowledge gained from this data enables headquarters to communicate the right information at the right time to stakeholders. For example, police notifications can be processed and leveraged immediately. The challenges associated with deploying such a solution usually come down to concerns about the bandwidth capacity to deal with the constant stream of large volumes of data, as well as the information capture and analytics tools. Using a solution that offers a cloud platform and data processing and analytics on a scalable, “pay-as-you go” model, logistics companies can maximise the benefits of Big Data analytics without the need for up-front investment in expensive ICT infrastructures or hardware. The maintenance of transport and delivery networks is no easy task, this highly-optimised infrastructure that constantly forwards goods around the globe doubles as a high-resolution data source and is, therefore, a distinct business asset. Such information not only serves to further optimise the network itself, but can also provide valuable insight to external parties. Platform-based Big Data solutions (e.g. SAP’s Hana solutions) are designed to cut costs and monitor environmental footprint to ensure compliance on behalf of the logistics provider. They optimise shipments
and routes, therefore saving fuel and operating costs. They can also offer complete transparency of driving behaviour and fuel consumption for vehicles, thus maximising fuel efficiency by improving driving behaviour. All in, Big Data is a disruptive technology that gives logistics companies the power to process vast data volumes at an affordable price point. It can help address a number of prevalent industry challenges and will take operational efficiency and customer experience to the next level. Speaking of big, a fantastic event visitors can experience the wonders of Big Data technology in supply chain under one roof in Australia is at this year’s inaugural MEGATRANS 2018, the international trade event that will be looking to bridge the gaps between these industry segments that have previously been operating in isolation. The mega event that will be looking to connect the Australian and international supply chain is a three-day expo, that is supported by the state and federal governments of Australia. It will bring together those who plan, implement and control the efficient and effective forward flow and storage of goods, services and related information between the point of origin and point of consumption. Covering over 30,000 sqm of space, it is all happening from 10 to 12 May, 2018 at the Melbourne Convention and Exhibition Centre.
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Comment
NIALL BLAIR – NSW Minister for Trade and Industry
Moving towards the right direction
M
ANUFACTURING in Australia is rapidly evolving. The old stereotype of blue-collar workers performing monotonous tasks is fast disappearing. Today, manufacturing firms in NSW use state-of-the-art production technology and highly skilled staff – with advanced knowledge, processes and business models – to manufacture high-tech quality goods and services that are exported globally. These companies are focusing on value rather than cost and are becoming smarter in the way they use their equipment and people. NSW is Australia’s most successful manufacturing state and the NSW Government believes manufacturing underpins a key component of the economic future not only of this state but of the entire country. That’s what is driving us to create and maintain the best conditions for manufacturers to thrive. NSW is home to a third of the nation’s manufacturers, which employ 270,000 people, and account for seven per cent of all jobs in this state. Government can’t solve all problems or realise all the opportunities, but we will go into bat for our manufacturers and agribusinesses that are so crucial to the health of our cities and towns. We are working closely with industry to tackle global challenges from rapid automation and digitisation. The focus is on practical solutions to ensure manufacturers are able to equip themselves with knowledge and tools, technologies, and highly skilled staff to produce goods that can exported to the world. Part of that practical support is helping promote our world-class capabilities to global and domestic supply chains. Too many firms miss out on new business because they don’t have the resources to market their products on the national and international stage. Two areas where we are already working hard with industry to address this are defence and food.
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In the defence industry, the NSW Government partners with Team Defence Australia to accompany delegations of our internationally competitive manufacturers into overseas markets and to major events to meet key decision makers and do business. Participation in international and domestic trade shows is an important way we help NSW businesses gain greater exposure and benefit from the credibility that comes with being under the NSW Government umbrella. Participation is a key factor in major contract wins. At the Avalon Air Show last February, our co-exhibitors obtained over 100 firm future business prospects. And following the Pacific 2017 maritime expo in October, a number of NSW co-exhibitors are expecting increased sales, new export orders and will be creating extra jobs over the next two years. Hunter-based Varley Group, an advanced engineering vehicle manufacturer, has recently announced a $10 million partnership with US defence avionics company Coherent Technical Services at Avalon, and another co-exhibitor has secured a half-million-dollar contract. The Land Forces trade show in Adelaide in September 2018 provides another big opportunity for our state’s defence related businesses to showcase their offerings. Expressions of interest to join the NSW Government delegation will close on 2 March 2018 and I welcome applications wholeheartedly. When I visited the annual Fine Food Australia event last September, there was a real buzz around the ‘Flavours of NSW’ pavilion and the 16 companies on show. Fine Food attracted 24,000 visitors, including 2,850 from interstate and 1,091 from overseas, so I was not surprised to see our food and beverage businesses, like muesli and health bars company Eclipse Organics, reporting increased sales directly linked to the expo. Expressions of interest to join the
NSW Government stand at Fine Food in Melbourne in September 2018 will close on 2 March 2018. A spot in our pavilion really adds value so I strongly encourage eligible companies to apply. As well as food and defence, the NSW Government actively supports advanced manufacturing across all sectors including ICT, rail, medical technology, biotechnology and composite materials. We are currently developing an Advanced Manufacturing Industry Development Strategy to anchor the sector in these industries of the future and deliver skilled jobs across NSW. The NSW Department of Industry is currently consulting around the state, talking one-on-one with NSW firms. We are also working in partnership with industry and government partners including the Commonwealth’s Advanced Manufacturing Growth Centre. The Department is leading the coordination of a practical strategy to maximise investment and job creation across the sector – from research and design through to transport and logistics. Aerospace is also emerging as a sector of promise with the advent of a new national space agency. NSW already has the largest concentration of satellite communication capabilities in Australia, and the nation’s first
space-related business incubator. I am excited at the plans underway to build on these strong foundations by developing a new aerospace and defence industries precinct and an agribusiness precinct which will both be about high-technology advanced manufacturing businesses being located around the planned Badgery’s Creek airport. This precinct has already attracted a commitment from Northrop Grumman to invest $50 million for an advanced defence electronics maintenance and sustainment centre. There are so many reasons to support our manufacturers. Australia’s manufacturers invest an average of five per cent of their value added to R&D – more than any other sector. Jobs in manufacturing are, on average, better paid and more stable. They have less than half the incidence of part-time work and average weekly earnings are about 10 per cent higher than the economy as a whole, according to ABS data. It is clear to me that manufacturers are vital for our economic future. After a challenging decade, NSW manufacturing is heading in the right direction and I am determined the NSW Government does all it can to help secure the bright future in prospect for the sector.
Manufacturers’ Monthly FEBRUARY 2018 7
News@MM Frost & Sullivan recognises ABB’s 2017 achievements Frost & Sullivan named ABB as its choice for the 2017 Company of the Year thanks to its visionary innovation embodied by its distributed control system (DCS) offering and its impact on customer performance. The award recognises ABB’s digital leadership, not only when compared to other industrial automation suppliers, but also against non-industry peers. The award highlights how ABB meets customer needs for improved performance in tough market conditions, at a time when process and power industries’ production assets have never been larger or more complex. Frost & Sullivan states that ABB’s penetration and expansion in emerging markets have helped it dominate the DCS market with a 20.5 per cent market share in 2016. It notes that ABB’s two closest competitors hold market shares of 15.2 per cent and 14.5 per cent. “ABB has unswervingly led the DCS market across the power end-user segment,“ stated the Frost & Sullivan report. “Its expertise in developing innovative solutions that match the needs of energy and energy-intensive industries like oil and gas, utilities, and mining operations has reinforced
its significant global market share. ABB has the best and widest DCS portfolio across the industrial automation market. The organisation offers the customer-specific control platforms ABB Ability System 800xA, ABB Ability Symphony Plus, Freelance and Compact Product Suite.” “With our installed base of over 70 million connected devices and 70,000 control systems, and an annual investment of $1.5 billion in research and development, ABB is leading the digital transformation taking place across all process industries,” said Bernhard Eschermann, technology manager of ABB’s Industrial Automation division. “We are uniquely positioned to create additional customer value by sharing best practices across industries while tailoring solutions to specific end-user needs. By partnering with ABB, customers have access to decades of proven, digital solutions which will help them achieve unprecedented improvement in productivity and performance.” Frost & Sullivan’s market research analysts attribute ABB’s success to its alignment with market Mega Trends and developing industry-specific DCS solutions to address the demands of
Frost & Sullivan says that ABB’s success is because it aligns its solutions to address the demands of different end-user market segments.
8 FEBRUARY 2018 Manufacturers’ Monthly
different end-user market segments, thereby enabling them to create new opportunities and values for their customers. This, they say, has helped ABB stay ahead of competition and retain a leadership position in the DCS market. With market growth drivers such as advanced control strategies, software-based services, value-added services and lifecycle cost optimisation, ABB is well positioned to retain its leadership position. “While many competitors have had flat growth in recent years, ABB continues to steam ahead and build on its existing installed base,“ the report said. ABB’s 2017 launch of the ABB Ability platform is commended for providing comprehensive, unified and cross-industry digital capabilities. This launch, together with the availability of more than 180 ABB Ability solutions customised for individual end markets, ensures ABB continues to set the benchmark for digitisation, enabling its customers to accelerate towards achieving operational excellence, said the award citation. This is augmented by selflearning to harvest data better and do more with ABB than competing
systems, which Frost & Sullivan says distinguishes ABB from the rest of the competition. The report also praises ABB Ability Collaborative Operations Centers for helping customers improve performance. This is achieved by connecting them instantly, 24/7, to ABB experts who use remote diagnostics and analytics to solve problems before they become failures. Likewise, ABB’s lifecycle service policy which maximises the life of a customer’s investment, and its oneof-a-kind third-party Value Provider Program with channel partners located near end-users to provide a superior experience, are applauded. ABB is a leading provider of integrated power and automation solutions with unparalleled experience in partnering with the process and power industries, bringing them improved operations and sustainable progress. The company delivers integrated and secure digital systems, services and solutions to automate and optimise the performance of industrial facilities. Also recognised is ABB’s position as one of only two companies capable of acting as a Main Automation, Electrical and Information Contractor (MAEIC). Such a service cuts the cost, schedule and risk of new projects through single-source accountability. The latter is bolstered by digital innovations such as cloud engineering and configurable I/O channels which decouple software from hardware design, speeding up project execution and minimising the impact of late-stage design changes. The award also recognises that, faster than many other automation vendors, ABB embraced the need to invest in start-ups as a way to foster innovation and scale up digital offerings quickly. The partnership with ABB and Microsoft, announced October 2016, is also identified by Frost & Sullivan as another way ABB is leading the way in nurturing a broader ecosystem of applications to drive digital excellence. manmonthly.com.au
News@MM No third-time charm for Emerson’s $38b takeover bid of Rockwell Automation Last November, Rockwell Automation rejected a third bid offer valued at US$29 billion (A$38 billion) from Emerson Electric. Rockwell said that the proposal, which was unsolicited, did not match the value of the company and the bid did not outweigh the risks for an acquisition to happen. The third bid followed two earlier bids last year. Emerson announced then that its chairman and CEO, David Farr, had sent a letter to Rockwell Automation president and CEO, Blake Moret, proposing to acquire all outstanding shares of Rockwell for US$225 per share, consisting of US$135 per share in cash and US$90 per share in Emerson shares. The total enterprise value of the transaction was reportedly approximately US$29 billion. Moret said, “The Rockwell Automation Board and management team are confident in the Company, our strategic direction, and our ability to continue delivering exceptional share owner returns and value creation in excess of Emerson’s proposal, particularly given the weakened position and dis-synergies that would result from combining
our two organisations, and the risks associated with Emerson’s stock-based currency. Bigger is not always better for driving growth and value creation.” As another reason for the board’s decision to reject the acquisition bid, Moret also pointed out while Emerson may see this proposed acquisition as necessary to enhance its growth and earnings potential and expand its capabilities in the industrial automation and information market, Rockwell does not because he believes that they have all the necessary capabilities to continue to thrive in the market. According to market watchers, the third bid will most likely see the end of talks for talks between the companies. This follows Rockwell’s rejections of Emerson’s two previous tie-up proposals although there may still be interest from other suitors in the market. Rockwell is the manufacturer and solutions provider of motor and industrial automation, control and power systems while Emerson’s core business is in technology and engineering services, including measurement instruments and transmission.
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News@MM Australian manufacturing ‘seeking progress’ in 2018 Australia’s manufacturing industry entered 2018 in good health after completing a year of continuous month-on-month growth. Further building on the recovery the sector has experienced over the year, the Australian Industry Group Australian Performance of Manufacturing Index (Australian PMI) recorded a reading of 56.2 in December – down a slight 1.1 on the previous month. All seven activity sub-indexes in the Australian PMI expanded in December, with production, stocks (inventories) and supplier deliveries growing at an accelerated pace while new orders, employment, exports and sales all moderated. Six of the eight manufacturing sub-sectors also expanded, led by the very large food and beverages
10 FEBRUARY 2018 Manufacturers’ Monthly
sector which recorded its highest monthly result since April 2016 (63.2 points). While still expanding, the non-metallic mineral products (55.7 points) and machinery and equipment (55.4 points) sub-sectors both recorded their lowest index results for 2017 in December, as did wood & paper products, which slipped 3.5 points to move back into contraction (47.2 points). “December marked the 15th consecutive month of expanding or stable conditions in the manufacturing sector and adds to the confidence and momentum that has been building over the past year,” said AI Group CEO Innes Willox. “The healthy Australian PMI reading of 56.2 is all the more impressive given the headwinds of
the closure of auto assembly, high energy prices and growing skills shortages which have marked 2017. “Manufacturers will be looking
to the new year for the progress on the National Energy Guarantee and other measures to put downward pressure on business costs.”
December 2017 was the 15th consecutive month of the manufacturing sector expanding.
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News@MM Port Augusta solar thermal plant development approved The new solar thermal plant at Port Augusta is set to begin construction this year with the project receiving development approval from the state government. SolarReserve’s $650 million Aurora plant, which will use mirrors to heat molten salt and store energy, will supply 100 per cent of the state government electricity load from 2020, after it won a competitive tender process. Acting Energy Minister Chris Picton said, “It’s fantastic that SolarReserve has received development approval to move forward with this world-leading project that will deliver clean, dispatchable renewable energy to supply our electrified rail, hospitals, schools and other major government buildings. This approval triggers an investment of about $650 million, will create a total of about 700
650 local jobs will be created during construction of the power plant
construction and ongoing jobs in Port Augusta and will add new competition to the South Australian market, putting downward pressure on power prices.”
The project will also supply the broader market, enhancing competition and putting downward pressure on power prices. The 150MW solar thermal power
plant, 30 km north of Port Augusta, will be the biggest of its kind in the world and create about 650 local jobs during construction and 50 ongoing positions. SolarReserve is a privately held, venture capital-backed renewable energy company based in California. It is a developer of concentrated solar power utilising proprietary molten salt storage technology. South Australia is fast becoming a global centre for the development of renewable energy with storage with a range of other projects set to come online over the next few years. SolarReserve CEO Kevin Smith said, “This important milestone is a significant step in the development of the Aurora solar thermal power station, which will bring SolarReserve’s world-leading clean power generation technology to South Australia.”
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Industry FOCUS
Diversifying the Australian workforce Australia is seeking to become an innovation nation, yet industry advocates insist a lack of workforce diversity is creating obstacles. Manufacturers’ Monthly reports.
D
IVERSITY is the compass for innovation, according to a champion for gender equality in the workplace. Keely Quinn, Canberra division manager for Engineers Australia, has highlighted what she calls a “stark disconnect” between the country’s industrial and academic streams. Further still, she says this disparity is directly affecting the number of young female engineers entering the workplace and also a large amount of experienced women who are leaving the sector.
12 FEBRUARY 2018 Manufacturers’ Monthly
According to a report by the Office of the Chief Scientist, less than one-fifth (16 per cent) of Australians qualified in science, technology, engineering and mathematics (STEM) are female. The research also showed that seven per cent of engineers in Australia are women. This was explained partly by women taking maternity leave not returning to the industry. “We only have six per cent of young women studying the right subjects,” according to Quinn, who addressed the issue at Autodesk
University conference in Sydney. “We train these women and, at about the age of 30 to 35, they leave the workforce and do not come back to the profession after maternity leave.” The World Economic Forum’s global innovation index ranks Australia 23rd and, although the nation is ranked eighth for its quality of research, it is bottom of the pile of OECD countries for commercialisation. “At Engineers Australia, we have seen a very large gap between industry and our universities,”
Quinn continued. “We really have a problem with our students, particularly in university, not gaining any kind of access into industry, which is needed for their coursework. “What they are also missing is a critical understanding of how businesses work, so if these young people are our future innovators and are going to come up with the next big ideas, with no access to business and industry, how do they know what problems to solve? “This disconnect is really stark. When we talk about how we are manmonthly.com.au
IndustryFOCUS It is not necessarily a male-dominated industry anymore and, with the introduction of new equipment – which means the physical hardship of the industry is not as taxing as it used to be – we are seeing a significant increase in the number of women in welding.” doing in terms of collaboration in higher education, we have a problem of diversity in the engineering field.”
Championing change The Male Champions of Change for STEM was established in 2016 to lead and influence change in women’s representation in STEM subjects. Speaking at last year’s event, acting minister for Industry, Innovation and Science, Michaelia Cash, said that STEM knowledge is vital to Australia’s economy. “We know that women are still under-represented in many areas
of science, technology, engineering and maths,” she said. “We need to harness the full potential of women, in order to reach our innovation capacity as a country.” An “infrastructure boom” in places like Sydney will highlight a shortage of experienced engineers over the next few years, according to Quinn, who says that Australia is not utilising its female and international workforce. She also says that finding engineering roles for women returning to the workforce is vital for inspiring a new generation of female workers. “We need to remember that
we can’t be what we can’t see,” she said. “So, if we don’t have females staying in the profession and moving into management and leadership roles, those young girls out there can’t see a reason to move into engineering. “All of those people with international experience, they are not working with us. It seems we are missing out on some expertise that could well bring on the next wave of digital disruption. “Diversity is the compass of innovation – it leads and directs their innovation. There have been a number for studies that show that diversity in teams leads to better outcomes and that having one woman [in the team] isn’t enough,” she added.
Women in welding The evolution and introduction of new technology has seen an upturn in the number of female welders, according to Geoff Crittenden, CEO for the Welding Technology Institute of Australia (WTIA). WTIA is planning to introduce advanced welder training centres
Keely Quinn, Canberra division manager for Engineers Australia, has highlighted what she calls a “stark disconnect” between the country’s industrial and academic streams.
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based on the use of modern welding machines and simulators to train welders to the standard required to be globally competitive. In addition, Crittenden says there is room to grow high-value welding roles for the female workforce. He says that some of the top welders in the country are women and they are encouraging a much greater openness for women working in broader occupations. “In terms of what’s happening in the workforce, women make great welders,” Crittenden said. “I have been in fabrication shops around the country where at least half of the welders are women. “It is not necessarily a maledominated industry anymore and, with the introduction of new equipment – which means the industry is not as taxing as it used to be – we are seeing a significant increase in the number of women in welding.”
Flexible workforce At CSR Limited, a major Australian industrial manufacturer, its team has worked to establish a diverse working environment and was recognised at last year’s Women in Industry Awards, held in Melbourne, where many of its female workforce were nominated for various categories. Paola Tornatore, CSR’s group HR manager, was nominated for excellence in manufacturing. Speaking with Manufacturers’ Monthly she explained why employee coaching could boost manufacturing’s return-to-industry rate for established career women. “From our research, we know that teams that are more diverse are the ones that are going to create more diverse thinking, which leads to better performance,” she said. “In the manufacturing industry, companies are really trying to improve the prevalence of the female workforce. There is, however, no easy solution. “There is no hard or fast way to do it but there are Australian companies out there which are consciously trying to attract and retain female workers.” Tornatore believes the fast-moving Manufacturers’ Monthly FEBRUARY 2018 13
Industry FOCUS consumer goods (FMCG) sector in manufacturing is a good place to start, including food and pharmaceutical plants where the worker environment is more appealing among the otherwise male-dominated sectors. “For those women who leave the industry to spend time with their families, companies really need to look at how they can make it easier on the woman to continue her career,” she continued. “I am not necessarily suggesting a financial commitment, but rather flexibility around their position so that gives more women the chance to join or re-join an organisation. “Some form of coaching or mentor scheme would give women a chance to express ideas and prepare for future career opportunities.”
Reasons for optimism Almost half of Australian businesses are innovating, according to a new industry report, which examines the strength of high-growth firms.
The Australian Innovation System Report, which was released last month by the Department of Industry, Innovation and Science, expresses that Australian companies tend to specialise in modifying innovations introduced by other domestic firms. However, it goes on to explain that new-to-market innovations are not nearly as common and that Australia ranks in the bottom half of the OECD for collaboration and innovation. As an advocate for engineering, Quinn is optimistic about the future. However, she insists there are some serious questions that need to be asked around the issue of diversity before Australia’s innovators are able to flourish. “Every week, I learn something new and I am constantly amazed at engineers and how humble they are. They do so much for our society,” she said. “The level of innovation and
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14 FEBRUARY 2018 Manufacturers’ Monthly
The question still remains if Australia is ready for more innovation and change. disruption feels like it is just constantly moving and we cannot do much about that. “The question is whether we, as
an Australian industry, are ready for that innovation and change. I ask the question because I don’t necessarily think that we are.”
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Issues &INSIGHTS How manufacturing can change Australian law
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Unlocking the global supply chain to Australia’s manufacturers is key to industry growth. However, striking the right government policy is essential and requires two-way communications. Steven Impey investigates.
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MBRACING a greater demand for productivity within a growing industry, law and government policy tend to lead the charge. That said, it doesn’t mean that the industry player doesn’t have a say. They do, and the Federal Government is actively encouraging businesses – small, medium or large – to express themselves. To increase productivity on the factory floor, the modern-day manufacturer is being told that it needs to adopt new technology. Industry innovators – those who 16 FEBRUARY 2018 Manufacturers’ Monthly
Australian manufacturers have the capability to influence the law at Parliament House.
challenge the traditional methods of manufacturing, including the rules they play by – are the ones setting the tone. The appeal of automation is accelerating, according to International Federation of Robotics, which is projecting more than 1.7 million new industrial robots will be introduced to the industry by 2020. However, with all the focus on how to better improve the efficiency of an individual assembly line, this effort is only beneficial if the supplier has the demand for production. To meet demand, manufacturers
are also encouraged to promote their theories and ideas to, not only place commercial goods on the market, but also question the current framework that grants them passage to the world.
Changing the law The industry’s ability to adapt policy and change law was a topic of conversation during a roundtable event recently held at the University of Technology Sydney’s business school, where members of Australia’s manufacturing industry discussed its potential. Graham Wren, a guest speaker
from Scotland, is a leading expert in industry strategy and manufacturing, and has represented the UK Government on committees such as the Organisation for Economic Cooperation (OECD) and the National Environment Agency (NEA). “Without an industrial strategy, essentially the market decides what to do,” Wren said. “The first thing the government has looked at is that ‘triple helix’ [between government, industry and academia] and how policy can drive economic growth. “How do you align that industry manmonthly.com.au
Issues&INSIGHTS demand with what the universities can supply and use policy to make industry successful? This alignment is really crucial and, if you can’t give that a go, you are going to end up with regional or small-scale activity.” As industry evolves, the relationship with its government therefore adapts too and has been seen throughout modern history. In the 1970s, German company Pilz fought to change the law to include safety policy for electronics and automated manufacturing in addition to mechanics, which it was historically known for. Speaking with Manufacturers’ Monthly, Pilz CEO and managing partner, Renate Pilz, revealed the lengths the company had to go to, to increase the scope of what safety encompasses across the automation industry and the difficulties they experienced getting it over the line. “Automation had become an important part in our lives, so we wanted to make automation safe,” Pilz said. “We saw that it was very
important and, at that time, we were not allowed to make safety part of electronics. It was only allowed for mechanics.” Pilz had to go directly to the German government to convince them and, after persistence, achieved a change to national policy around safety, which has since
become a global movement. “It was a long development,” she continued. “I remember when we came to Australia in the 1990s, the government said that it was going to roll out the red carpet [for us] because safety is an important part of automation. “This is in our heart and it makes
our business important. We are human driven and I am often asked whether it is sad for us to see that our competitors are now adopting safety in business, too. “I always say ‘no’ because it is so important that safety is part of automation. There are people behind it and it makes our business unique, so we always wanted to educate the market in different countries.”
Role of the Catapult
The Federal and State Government actively seek ideas for new industry policy directly from the factory floor.
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In the 21st century, Wren insists industry still has the power to strengthen national and international law. As an example in Europe, he explains that distinguishing the difference between high and low levels of future waste generation could present industry with an opportunity post-Brexit, and one that could save the UK up to £6 billion (A$10.4 billion). “High-level waste is fuel, which generates heat for a long time, while low-level waste includes things like
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Manufacturers’ Monthly FEBRUARY 2018 17
banana skins,” Wren said. “In Europe, those two categories are conflated into one and, if you separate those and say that the neutron-generated waste could be categorised as lowlevel [waste] in 30 years time, you could save [money]. “That’s an idea where the industry could say to the government that, if it changes the rules post-Brexit, you could save a lot of money and here is the evidence. “You have to ask why the rule is there. It has probably been there for 40 to 50 years and set up at a time when we didn’t understand it. But things are different now and you can have any rules that you want.” In Australia, similarities in industry models with the UK are there, Wren continues, in the sense that both nations own high-quality research universities, which can be positioned to better impact the economy. “Part of that is this thing we call the Valley of Death,” he said. “In the UK, we used to have large companies which had in-house research and could engage with universities and suck in that technology. “Since the opening of the market in the 1970s, most of them have gone and they are stranded and can’t get to the research in the universities. “So, we have spent a lot of time creating ways to coordinate an approach towards translational research.” Out from the mist came industry centres that, in the UK, are dubbed as “Catapults”. “As we pursue an ambitious industrial strategy and try to navigate the uncertainty of Brexit, Catapult Centres play an important role in anchoring high-value manufacturing activities in the UK,” Wren explained. “Industry is slowing down investment for obvious reasons – because we are worried about what Brexit means and how we are going to trade with Europe – and that prop is partly to do with that Catapult network.” Catapults are essentially technological spokes – each one owning a focus or expertise, whether that is machining, welding, materials; 18 FEBRUARY 2018 Manufacturers’ Monthly
focal points that the industry can engage with. In Australia, the government implemented the National Business Simplification Initiative (NBSI), which is a Commonwealth agreement between federal, state and territory governments to work together to make it simpler to do business in Australia. The purpose of the NBSI is to ensure businesses can focus on growth, creating more jobs and developing new products and market opportunities by addressing the burden of unnecessary regulation, particularly where there is duplication across federal, state and local government levels. The initiative aims to help businesses save time and money, allowing them to focus on their businesses and families rather than on coping with overly complex government processes and regulations. “The NBSI is designed to make doing business simpler,” an industry department spokesperson said, “removing the barriers to spawn new business creation, which in turn allows innovation to flourish and most importantly, creates more jobs in manufacturing.”
Championing growth Similar to the UK’s Catapult Centres, the Australian government has also established its own industry-led Growth Centres, designed and proven to bridge the gap between industry, researchers and government policy; stimulating innovation and R&D, as well as positioning Australia as an innovative economy. For example, METS Ignited and National Energy Resources Australia (NERA), two resource-related Growth Centres, are working collaboratively with governments and industry to develop a regulatory reform roadmap. The roadmap will identify options to optimise the regulatory environment to promote growth of the resources sector without compromising important environmental, safety or social licence objectives of the framework. At the Advanced Manufacturing
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Issues &INSIGHTS
Dr Jens Goennemann, managing director of the Advanced Manufacturing Growth Centre.
Companies are best placed to call out where policies can improve, and through our experience, governments are ready to relieve the burden when the evidence is clear. Growth Centre (AMGC), its conviction is to give the Australian government a sound policy framework, which spurs job growth through innovation at the Australian SME level. “After all, we are a nation of predominantly small and medium size manufacturing companies, and this is where, by sheer numbers, most of our opportunities reside,” said Dr Jens Goennemann, AMGC managing director. “Therefore, effective policies must support these businesses that invest and take risks to achieve commercial returns.” The Australian manufacturing industry is a “vibrant ecosystem”, according to Goennemann, which employs one in 10 workers. Manufacturers export close to $9 billion per month, and contribute 7 per cent to the nation’s GDP. “To maintain our sector’s overall health, we work closely with federal and state governments on regulatory reform and policy alignment,” Goennemann continued. “Through ongoing industry consultations, we identify
unnecessary red tape, or alternatively, spotlight where regulatory standards and assessments can be refined and strengthened.” A recent example is the AMGC’s submission to the Innovation Science Agenda 2030. In this paper, the AMGC advises the government on ways to nourish Australia’s innovation culture, assist with company succession planning and address skills gaps where they exist. Tailoring policies to reflect current business needs and shifts in the international landscape is an ongoing conversation. “We openly invite interest from manufacturing companies who have views on how to better unlock their creativity and forge profitable connections into global supply chains,” Goennemann said. “Companies are best placed to call out where policies can improve, and through our experience, governments are ready to relieve the burden when the evidence is clear where regulations impede competitiveness.” manmonthly.com.au
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Education &MANUFACTURING New dean on the scene: Combining business with manufacturing Australia’s drive for more advanced manufacturers means students are widening their gaze to the global supply chain. Professor Chris Earley, dean of the University of Technology Sydney’s business school, speaks with Manufacturers’ Monthly.
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NEW job: a fresh outlook. On his desk at the University of Technology Sydney (UTS), the new dean of the business school has introduced a toy ‘yes’ button. It was a Christmas gift, Professor Chris Earley explains. Though a gimmick of sorts, it does hold some relevance to his philosophy. “Business schools are often very conservative,” he said. “The default answer tends to be ‘no’ because ‘no’ is the safe answer. “That, I suppose, is relevant to
our discussion about manufacturing,” he continued. “Likewise, a lot of the problems within manufacturing have stemmed from that.” On one hand, he is talking about the digital transformation – why advanced manufacturers are surviving, and in some cases beating, the shift to Asia. In another, he is talking about outlook – why some manufacturers are willing to cross oceans to learn about what makes their consumers and competitors tick, and to better
understand the shift of power. “For a long time – before it became cheaper to manufacture abroad in places like China and the Philippines – the default answer was always ‘no’,” he added. To put it bluntly, the traditionalist no longer owns that luxury. Along the ever-integrating supply chain, Earley insists the industry has reached a crossroads and needs to act, starting with the workforce’s consciousness. “They didn’t want to do things differently because they were
doing okay as it is, and while that was the case once upon a time, the problem is it won’t be in the future,” he explained. “As you know, inertia can be an enemy and, in business schools, we can be the same sometimes,” he said. “The education system is facing its own technological disruptions, so we have to think differently too.” He refers to the paper trade in Tasmania, a place he knows well from his earliest experiences of Australia as dean of the Tasmania School of
Professor Chris Earley wants Australian manufacturers to take a more optimistic approach towards advanced manufacturing.
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Business and Economics. “Tasmania used to be a very successful producer of paper pulp and wood-related products,” Earley continued. “That’s all drying up. There is that financial bottom line that creates an immediate incentive. “The difficulty is: for the industries that have more buffer because they are either protected by government or they are protected by their sheer size, it takes longer for them to get the message that there is an urgency [for change].”
Learning curve The e-commerce giant Amazon, which arrived on Australian shores last year, will play a massive part in the supply chain, Earley predicts. While not a manufacturer, he wholeheartedly believes that the smartest organisations in Australia will use Amazon’s arrival as a “learning mechanism”, to see how a world-class supply chain organisation moves things around. “If you are a mid-level manufacturer, you really need to be seriously adept on the supply chain,” he continued. “The industries which tend to be more outward looking – constantly scanning the environment for ways to improve – tend to be the ones who don’t get taken by surprise as much. “In Australia, there are firms taking on advanced manufacturing who are not going to have a problem because they are constantly looking for new ways to develop.” Born in Pittsburg, Earley grew up across the US-Canadian border near London, Ontario, in the small municipality of Strathroy. Unlike the trans-Atlantic, where competition for trade in the larger US and European markets forced manufacturers to revise their own outlooks as far back as last century, he says Australia has been buffered somewhat by its remoteness. “In the Pacific Rim, Australia was the leader for a very long time, but not at the high level China is producing today,” he said. To complement this recent shift, Earley says that the country’s students must represent a “new labour force” and one that is more globally aware. manmonthly.com.au
“We can do that by, not only bringing in international students, but also by making certain that domestic Australian students have international and global experience as part of their education,” he continued, “so that, when they do work for Australian companies, they have a better ability to communicate the nature of these international markets. “That’s coming from a very basic level – but, even in terms of operational issues and the issues of the supply chain, this becomes very important. “How can I place my product into different kinds of international markets where infrastructures can vary dramatically in terms of quality and outreach?” That’s one of the first things the business school can do, Earley says, to try to provide a workforce in Australia that has a better appreciation for what global markets can look like. “We also need to work closely with manufacturers and we are doing that at UTS, largely in terms of technology and engineering,” he said. “At a business school, we need to work with engineering and science to do a better job of reaching out to manufacturing firms and to provide the ‘business’ context of how to be a more productive organisation. “That is something we are doing but not as well as we could. Professor Roy Green (Earley’s predecessor) was trying to move that forward and it is part of my job to continue that.” As dean of the business school at the National University of Singapore, between 2004 and 2007, Earley says he has never seen a better integration of government, industry and education. “The three work hand-in-hand on things and it is a model I think Australia should go after,” he said. “One of the things that attracted me to the job at UTS, in particular, is the fact that the leadership of the university is very supportive and engaged with industry, to make this a first-class university that has impact.”
UTS business school building links with industry. Sustainable Futures, and is considered a critical piece of the business school’s future amid combined international efforts to reduce carbon emissions. “You only have to look at the power shortage in South Australia to see how energy – and specifically solar energy – has become a more important issue around the manufacturer,” Earley said. “With a short-termism approach, all you are doing is forestalling the inevitable. Combining business with all those factors, around the social impact, the supply chain, and also sustainability is very important.” However, a swell of students from STEM backgrounds globally are joining the workforce with too high expectations, according to Earley,
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Education&MANUFACTURING
who says he has seen first hand how “frustrated” engineers migrate to other industries. “Part of the problem is that companies cannot afford to make things perfectly,” he continued, “but, while the engineers are so engrossed in the quality of their own expertise, they want to see the fruits of their labour in a very short timeframe.” The solution, he offers, is not to treat “STEM for STEM sake”, but to help students go into their sectors of industry with a better grasp of the bigger picture. “While they are good engineers, they can lose track of the strategic vision in the context of business and I think that’s where a business school can play an important role,” he added.
Setting standards In January, the business school at UTS reaffirmed its commitment and partnership with the Institute for Manufacturers’ Monthly FEBRUARY 2018 21
Transport AUTOMATION Getting smart with transport Sage Automation and Local Motors have officially launched “Accessible OlliStop” – the Internet of Things (IoT) enabled, smart shuttle stop that is a big step to revolutionise transport and accessibility services.
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HE smart shuttle stop known as the OlliStop will be on display alongside Local Motor’s driverless shuttle (aptly called ‘Olli’) at the international Consumer Electronics Show (CES) in Las Vegas that was held in January 2018. The Olli and the OlliStop communicate with each other and the internet to offer passengers an interactive, smart experience tailored to their individual abilities. Olli is also the first and currently, only autonomous vehicle that taps into the natural language capabilities of IBM Watson – the smart business AI platform that learns the language and nuances of specific industries and professions, then augments human intelligence to scale expertise. This gives riders personalised interactions with Olli through conversation, route assistance, and destination recommendations The “OlliStop” uses cameras, communication networks, voice recognition systems, sensors, lighting systems, software and IBM Watson’s natural language capabilities to talk to passengers and provide real-time travel information and assistance.
Making transport accessible for all The OlliStop was designed to communicate with and assist passengers based on their abilities. For example, kinect sensors and sign language displays on LCD screens can communicate with people who are deaf; speaker amplifiers and coloured signal lighting assists those who are hard of hearing or who have difficulty communicating; and cameras and sensors detect the passengers, ensuring a level of security “Together with Local Motors, we’ve engineered something that will positively impact people’s daily lives. It’ll make public transport more accessible for the elderly and 22 FEBRUARY 2018 Manufacturers’ Monthly
The OlliStop uses a variety of devices to enable the “smart experience” for the user.
individuals with disabilities,” Sage Automation CEO Adrian Fahey said. “At Local Motors our focus is on creating the best customer experience by bringing together the world’s leading technology companies to make it happen,” Local Motors Knoxville general manager Gregory Haye said.
OlliStop and Olli on showcase CES 2018 The Olli and OlliStop solution is also Local Motor’s answer to the ‘first mile last mile problem” – where major public transport systems don’t directly connect with people’s homes or work places. The stops are built to be relocatable within a few hours – giving road authorities flexibility to trial different ‘last mile’ locations, or put additional systems in place for major public events. “Our development of this prototype for the CES show is the first step in rolling it out publicly,” Fahey said.
Advanced Manufacturing Facility in South Australia before sending over the control system and other components for final assembly in the USA. “The real exciting story here is in the technology application – making a shuttle stop “smart” through the way we integrate technology so it can interact with people and Olli – that’s groundbreaking,” Fahey said. Sage project engineer Matthew King said a range of technologies had to be integrated to communicate with each other, and Olli. “Sage created the Ethernet network that talks to the shuttle and integrated everything from sound and music control, automated
announcements for arrival times, changeable lighting, kinect sensors, camera systems and security systems for remote monitoring of the bus stop,” King explained.
Functioning in the real world The technologies in OlliStop work autonomously, so when somebody enters the smart shuttle stop, a process begins. “When this is installed in your neighbourhood, the shuttle stop will use sensors to know when you’re standing inside the shuttle stop and will run tailored features based on either your app data, or assistance requested by you,” King said. But he explained, the display at CES will
Smart design: from Australia to the USA Sage Automation designed and manufactured OlliStop from its international headquarters and
Sage created the Eternet network that talks to Olli.
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TransportAUTOMATION only give people a taste of shuttle stop’s accessibility features. During the CES exhibition visiting attendees were given an RFID card linked to one of four different “personas” with differing abilities named Brent, Grace, Erich and Katherine. People will walk through and interact with OlliStop as one of these personas – and the shuttle stop will react accordingly. For the moment, those wanting to encounter the full experience will have to wait till they’re put to the market.
Be there or be square: why diversity is key As an Australian company with grass roots in automotive Sage Automation’s foray into the tech world is a lesson for every manufacturer, or business for that matter. Sage’s managing director Andrew Downs – who started Sage in his backyard while working in the maintenance department at Bridgestone – said the automotive industry has left a lasting legacy for the company but diversification was key. “But we owe our success largely to diversifying the business and refocusing our efforts on winning new work when automotive was in decline,” Downs said. “We’ve leveraged on the knowledge and skills we gained in automotive and applied them to new
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Technology products and consumer experience have never been more interdependant. and exciting technologies.” Technologies like the control systems used in the electronic lane use system on the Sydney Harbour Bridge, delivering next components for our naval shipbuilding industry through the Sage-Navantia Australia joint venture (NSAG), and connective data solutions needed in new industries like driverless cars.
Agility in the face of disruption Technology, products and consumer experience have never been more interdependent. Competition is moving from all angles and at lightning speed. Technological advancements in industrial automation, product
traceability, and recipe management impacts how consumers order and pay, and how products are designed and manufactured. Now more than ever, manufactures are using agile manufacturing to respond to rapid technological advancements, global supply chains and customer expectations around speed and quality. McKinsey research highlighted once case of a medical device manufacturer building flexibility into its lines to ensure it was capable of future product variations that may not be designed yet. In a related move, Sage recently optimised its advanced manufacturing facility layout to address its unique challenge; the
majority of its manufacturing orders are unique to a project. In short: the facility’s layout must be flexible to respond to changing orders. Building agility into operations like this means companies can react quickly and decisively to market demands. This, according to Downs, is key to remaining competitive in today’s marketplace. “A large part of agility is in having the best people and developing them, as well as having a strong relationship with the customer,” Downs said. “That way you’re always on the front foot. You understand customer expectations and are able to respond quickly and effectively,” he said.
Always staying prepared for market changes The automotive industry has seen advancements in alternative propulsion technology, 3D printing and self-driving technologies that have forced car manufacturers to transform their product and production methods. Operational agility is now central to achieving a competitive edge. Fluctuating product demand, labour costs, supply chain and broader market events like the 2008 financial crisis have the ability to render companies bankrupt. While preparation for such events extends beyond the plant floor, production must be able to respond when the business demands it.
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Compressors @MM Running the perfect partnership Kaeser Compressors shares its expertise on the importance of dry-running rotary screw compressors that will withstand the harshest of conditions.
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OME applications and environmental conditions impose particularly stringent requirements on the quality and production of compressed air. What is needed would be a full-stream rotation dryer combined with a dry-running rotary screw compressor to deliver both exceptional drying quality and maximum efficiency – even under the most challenging conditions. Ambient air contains water vapour. When the air is compressed, numerous key parameters increase, such as the air temperature, proportion of water vapour per volumetric unit of air and consequently, the air’s dew point temperature – or pressure dew point. Measured in degrees Celsius (°C), it indicates the lowest temperature at which water will not condense out of compressed air – in other words, condensation will result if the air is chilled below the pressure dew point. The lower the pressure dew point, the drier the compressed air. If the compressed air is not dried following the compression process, water can condense when the compressed air cools. It can then accumulate in the downstream compressed distribution air network or even within the realms of the production process itself – which can have even more serious consequences, as water can then
damage not only the compressed air system, but also downstream equipment that uses compressed air and the products being produced. So it’s extremely important to exercise due care in selecting the appropriate degree of compressed air drying for the specific process in mind. Ultimately, it’s the degree of compressed air drying that determines the drying method, and the cost of drying the compressed air. Refrigeration drying generally provides the most efficient and costeffective method for most applications, usually ensuring a pressure dew point of +3°C. If a lower pressure dew point is required due to the nature of the processes in question, more complex desiccant dryers or combination dryers can be used. However, these types of dryers involve higher costs as a result of the additionally required materials and increased energy consumption. In these types of dryers, the compressed air is treated using desiccants, such as silica gel or activated aluminium. During the drying phase, water vapour contained in the compressed air binds to the desiccants. Once the adsorption capacity of the desiccant is exhausted, it must itself be dried out – either continuously or at intervals, depending on its saturation. This process is called regeneration and is responsible for
the greater part of desiccant dryer operating costs. In technical terms, regeneration processes are differentiated into chamber and drum processes. In chamber regeneration, the desiccant is usually in granulate form and is contained in two separate pressure receivers. Desiccant regeneration takes place non-continuously and, depending on the type of unit, may employ cold compressed air that has already been dried. In the case of dryers that have been specially adapted to the compressor, hot compressed air supplied directly from the second compressor stage is used for regeneration.
Compact and energy-saving One type of drying process involves dryers with significantly more compact dimensions capable of superior adaption to the compressor; these are known as “heat of compression” (HOC) dryers. In this design, the desiccant is contained in a drum through which the compressed air flows in an axial direction. Desiccant regeneration and compressed air drying take place continuously, within a single pressure receiver. The drying and regeneration sectors are separated, however, both structurally and in terms of process. Slight pressurisation of the drying sector ensures that once dried, the compressed air does not reabsorb moisture from the regeneration air flowing by in the adjacent sector. The dryers are integrated in dry-running compressors, which – in contrast to oil-injected compressors – feature two compression stages and generate significantly higher temperatures during the compression process.
Drying without additional energy consumption The unassuming exterior hides the exceptional versatility that lies beneath: an i.HOC rotation dryer integrated with a dry-running rotary screw compressor.
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In these integrated rotation dryers, desiccant regeneration takes place continuously, using the heat that
already exists in the hot compressed air. Following regeneration, this heat is not lost, but rather the hot air is cooled down by the second compressor stage’s cooler and the heat is fed into the drying sector by a radial blower. This means that the heat arising as a result of compression of the air is also used for desiccant regeneration. Consequently, this heat is freely available without cost, since no additional energy is required for the drying process. This translates into maximum efficiency and outstanding drying reliability. This perfect interplay between the compressor and dryer also avoids additional energy costs, which are unavoidably incurred in the case of conventional desiccant dryers which use additional, external energy for desiccant regeneration. Furthermore, the energy cost savings from integrated rotation dryers continue to apply even with variable free air deliveries.
Reliable pressure dew point Modern integrated rotation dryers such as i.HOC units also guarantee reliable and stable maintenance of low pressure dew points to -20 °C and, under special conditions, even to -40 °C – regardless of the operational conditions or free air deliveries needed. In integrated rotation dryers, the attainable pressure dew point is determined by the compressed air inlet temperature in the drying sector and the available regeneration potential. This, in turn, depends on the mass flow of regeneration air and its temperature. The i.HOC integrated rotation dryer therefore uses the entire mass flow of hot compressed air available at the end of the second compression stage for regeneration purposes. This is why it is referred to as a “full stream” rotation dryer. Conversely, partial-stream rotation dryers use only part of the hot compressed air for desiccant manmonthly.com.au
Compressors@MM regeneration. All other conditions being equal, they therefore have lower potential available for removal of moisture from the desiccant. The higher regeneration potential of full-stream rotation dryers is especially advantageous when it comes to high cooling medium temperatures at the regeneration air cooler, low compression ratios in the compressor and – in partial-load operation – more consistent and significantly lower pressure dew points. The second important factor affecting the pressure dew point is the inlet temperature in the drying sector. A general rule of thumb dictates that the lower the inlet temperature, the better the drying performance, all other conditions being equal. In practice, this means that the lower the temperature of the available cooling medium (air or water), the better the drying results.
Intelligent regeneration management The attainable pressure dew point therefore fluctuates with the temperature of the ambient air (insofar as it acts as a cooling medium) – and this effect is especially pronounced in air-cooled compressors with integrated rotation dryers. For instance, if temperatures temporarily peak around 40 °C in the inlet area during summer months, it may be necessary to enhance the rotation dryer’s regeneration potential during
this time in order to avoid exceeding a required pressure dew point of -20°C. Far from posing an obstacle, in the i.HOC full-stream rotation dryer, the discharge temperature following the second stage (i.e. the regeneration air temperature) can be increased by a controlled bypass around the first compression stage cooler. The regeneration air temperature (and consequently, the regeneration potential) increase in order to ensure maintenance of the target pressure dew point. From an energy perspective, it makes sense to use the bypass to increase the regeneration air temperature to meet process requirements – especially since the conventional technology available on the market for electrically heating the regeneration air consumes significantly more energy. Pressure dew point management can also be beneficial for compressors with a low discharge pressure (less than five bar) in which the discharge temperature – and consequently, the regeneration potential – is limited due to the nature of the compression process. Intelligent dew point management is easily put in place when the compressor and dryer each share a common controller capable of perfectly harmonising the performance of both components.
Double heat exploitation The extensive benefits of integrated rotation dryers don’t end there. Aside from drying compressed air, they
Thanks to full-stream regeneration technology, the i.HOC rotation dryer is capable of exploiting much more heat than conventional dryers – an efficient feature that translates into lower energy costs. can also be used for heat recovery purposes. This means that the heat generated during the compression process is then used for other purposes; in the case of water-cooled compressors, it can be used for heating process water or heating adjacent rooms – delivering major cost savings in other areas. This is possible because the i.HOC integrated rotation dryer does not need an additional regeneration air cooler; rather it simply uses the compressed air cooler of the second compressor stage – which is already optimised for heat recovery purposes. All in all, an efficient way to avoid unnecessary heat wastage. Because of their relatively compact design, compressors with integrated
rotation dryers require significantly less space than two separate units – whilst also cutting installation and maintenance costs accordingly. A dry-running compressor with an integrated rotation dryer is therefore an excellent choice for users with a certain usage profile: demanding requirements in terms of compressed air quality and pressure dew point consistency; relatively little installation space; and a desire to take advantage of heat recovery, not mention those facing challenging environmental conditions. For all the reasons outlined, in such cases these machines often deliver the most reliable and efficient supply of compressed air whilst also cutting energy costs across the board.
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Energy MANAGEMENT The road to sustainable energy management Manufacturers’ Monthly catches up with Flow Power to get its thoughts on the National Energy Guarantee (NEG) proposal to manage electricity consumption and prices.
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N the last quarter of 2017, the Energy Security Board (ESB) provided the Council of Australian Governments (COAG) Energy Council with advice on changes to the National Electricity Market (NEM) and legislative framework. The proposed National Energy Guarantee (NEG) aims to support the provision of reliable, secure and affordable electricity with a focus on ensuring that the reliability of the system is maintained. It was also designed to ensure that the electricity sector emissions reductions needed to meet Australia’s international commitments were achieved with the objectives to be met at the lowest possible costs. COAG describes the NEG as a way to encourage new investment in clean and low emissions technologies while allowing the electricity system to continue to operate reliably. To deliver this transition, the NEG requires retailers to contract with, or invest in, generators or demand response to meet a minimum level of dispatchable “on demand” electricity. At the same time, retailers must also keep their emissions below an agreed level. Energy management specialists Flow Power has long been proponents of demand response and it believes the method of implementation is the key, according Matthew van der Linden, managing director of the company. “I think there may be many questions in the market place on how the NEG is going to be implemented and become effective,” said van der Linden. There are two components to the NEG. The reliability guarantee, which aims to make retailers more responsible for reliability. That means that retailers will need to prove to the regulator that they have enough contracted capacity to meet peak demand. Then the emissions guarantee means that retailers will be required to meet a certain amount of emissions from the market. “The question that the Energy 26 FEBRUARY 2018 Manufacturers’ Monthly
Security Board is trying to resolve is: how can you spread the responsibility of reliability and sustainability while bringing costs down? They are looking to shift the accountability across the power system from just generators and the operator through to retailers and users. That could be fantastic – as long as we get it right,” said van der Linden.
NEG success dependent on structure Van der Linden explained that if this scheme is built and structured correctly, the customer will only stand to benefit. “Demand response also needs to become the central focus of the scheme because it gives users the power to impact their electricity prices. If not, then existing problems might get worse because if demand response is removed from the equation, then the message to customers is to not manage their load and price, but instead, it would get the government and industry to spend money on building new generators that can respond for them – an economically unviable option as compared to the demand response option. “The NEG’s structure has to be strong if it is to get customers to care about how they use energy. This will also open the door to open a framework that encourages innovation and hopefully, let the market know that power can be used differently and more efficiently in terms of a price reduction,” said van der Linden. “At the end of the day, demand response is still a lot cheaper than a generator. If the retailer is going to need to contract with gas generator, it would be expensive. In that scenario, we and the other retailers would have to pass that cost to the consumer. However, if we could provide that capacity in the form of demand response, there may be some upfront costs to bear for the user but in theory, there is a cost
saving and a payment mechanism that can have big benefits for the customers.”
Surviving the scorcher Getting past the 10 hottest days within a calendar year depends on how the customer handles the situation, according to van der Linden. “Take for example a cool store. If they come onboard with us, they will have many tools at their disposal. If it is a hot day with high power demand, we will send an alert to them prior and they will cool their store by an extra few degrees to prepare for the coming hot hours where electricity prices go up and they shut off their cooling units for about two hours to avoid the high price period,” said van der Linden. Flow Power is also automating the process. By installing a physical black box like the kWatch Intelligent Controller on customer sites, they can see power demand in real time and remotely control equipment across many sites. That means they can respond quickly when prices change, or the power system is willing to pay for extra capacity such as in the Australian Renewable Energy Agency (ARENA) and Australian Energy Market Operator (AEMO) demand response programs. “The whole point of demand response, for us, is to make sure that the customers don’t have to pay for
the risk of high prices like they do with a fixed price power contract. That doesn’t meet powering down completely though but limiting it by using 70-80 per cent less and this makes a huge difference in the price,” said van der Linden. “The result can be up to a 30 per cent reduction in power costs across a site.”
Getting the best outcome for businesses At the moment Flow Power is working with a large building manufacturer who has already been participating in the ARENA Demand Response program in NSW. “They (the manufacturer) have analysed their processes and have decided that in some instances, they just go ahead and pay the market price rather than responding. However, they still find demand respond a viable way to cut power costs most of the time. Flow Power works with them to manage their operations through the controller,” said van der Linden Manufacturers across Australia are struggling with power price rises. The consultation on the National Electricity Guarantee will occur in 2018 through the Energy Security Board and users are encouraged to get involved. Demand response programs operate across NSW, Vic and SA and can create new revenue streams while cutting costs at the same time.
COAG describes the NEG as a way to encourage new investment in clean and low emissions technology.
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Sensors Driving data for industry demand As the manufacturer seeks better productivity on the factory floor, Bestech product specialist Jeremy Bryceson considers the role data acquisition is playing in industry growth globally.
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ATA logging is strengthening the global economy, according to international statistics, as manufacturers alike are adopting smarter sensor technology to record the way industry makes things. The World Bank recently released a report predicting worldwide GDP growth in the coming year, as a result of better-monitored manufacturing plants. Within the supply chain, the monitoring and recording of plant efficiency and the ability to track and trace a product from the source to consumer, provides manufacturers with a better understanding of their processes and therefore their cost base. “The development of data acquisition systems has become more centred around digital connectivity – compatibility with PCs and other industrial interfaces, according to Jeremy Bryceson, product specialist for Bestech’s data acquisition systems. “Interfaces, such as MODBUS, PROFIBUS, CAN, LIN, Ethernet, Ethercat, USB, RS485 and RS232 are now commonplace within manufacturing environments and users expect equipment to be able to interface directly with them.” Sensors are key to this transition. New technologies provide a broader range of sensing solutions than before, coupled with embedded digital interfaces they seamlessly connect between plant and control infrastructure. However, how you use that data is important. Recognising where that data can benefit your business and its supply chain is vital if the investment is going to pay dividends. “As we move towards industry 4.0, sensor technologies – MEMS (micro electro mechanical systems) for example, are providing measurement solutions that are more affordable than they have ever been before,” Bryceson continued.
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“The demand for better control of manufacturing processes is driving the use of sophisticated data acquisition technology in production environments with a view to providing continuous, cost-effective monitoring. “Process monitoring systems provide manufacturers with the ability to both tune the production processes and identify potential problems with the plant in advance thereby minimizing repair costs and down time”. Bestech, the Australian sensor specialist, offers innovative wireless data acquisition technology which is popular in structural health monitoring. “Our range of wireless products provide flexibility when digital integration is required in hardto-access areas where continuous monitoring is a requirement,” Bryceson said. “These solutions also have applications in a wide-range of other industries – for example in applications where a monitoring location may be very remote or where a cable-less monitoring solution is necessary”. Turning data into revenue is the process that manufacturers are keen to understand, according to Bryceson. Every piece of technology integrated into a manufacturing plant is done so to increase productivity, profitability and, therefore, to stay ahead of or abreast of supply chain competition. However, for a company ambitious to grow, understanding where it is the most effective to implement these technologies is the first major step to sustaining, and increasing, economic growth. Data demonstrates how a manufacturer is performing in its field of expertise and is therefore an imperative part of the company’s cash flow and annual financial reviews, too. “At the quality control stage of a
Every piece of technology integrated into a manufacturing plant is done so to increase productivity and profitability.
Modern data acquisition technology can be easily integrated into traditional and high-tech manufacturing operations. production process, data can provide the manufacturer with the ability to determine conforming and nonconforming product before goods are packed and shipped to a customer, saving both time and money in house and in the field,” Bryceson said. “In the paper industry, an accurate thickness measurement is critical during manufacturing. High volume production means that a few microns error in paper thickness measurement over the course of several hours or days will result in substantially higher production costs and therefore significantly lower profit margins. Sensor technology is widely considered as an essential resource
within manufacturing industry, according to Bestech, which is partnering with manufacturers of faster and more accurate data acquisition equipment for R&D testing and development that will benefit the wider industry. “Modern data acquisition technology can be easily integrated into traditional and high-tech manufacturing operations. The use of such technology enables operators and engineers to work “smarter” – real data providing them with the baselines against which any process improvements made can be measured to establish their effectiveness. ” Bryceson continued. Manufacturers’ Monthly FEBRUARY 2018 27
Manufacturing IN TRANSITION Continued growth the key to success With the bulk of the manufacturing GDP coming from local SMEs, it is good news to know that they are continuing to thrive even with the immense pressure coming from overseas imports.
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T the back of an exciting 2017 for the industry, something that Australian manufacturing should continue to provide is a compelling value proposition for its customers when competing against cheaper exports. How can manufacturers achieve this? According to some of the winners from last year’s Endeavour Awards – the key lies in being able to design and manufacture high quality products locally. The topic of overseas competition from low-cost nations was one of the key points out during a few of the presentations at last year’s Supply Chain Conference in Sydney. In the Business Council of Australia’s report Offshoring, Global Outsourcing and The Australian Economy, it says that economic and social changes brought by globalisation and technological change is an ongoing challenge the country is facing. Competition from overseas as well as the ongoing business restructuring required to meet this increased competition from overseas, low-cost imports means that local manufacturers’ abilities to create job opportunities in some sectors, especially those requiring relatively lower skill, becomes increasingly limited – which has been re-examined and recalibrated with new advanced technologies and reskilling. In particular, growth and activity in the Australian economy over the last three decades has shifted from relatively low-value manufacturing to higher value services-oriented industry. Managing director of Redarc, one of Australia’s most successful manufacturers and winner of the 2017 Manufacturer of the year said that the maintenance of a strong market presence as an Australian manufacturer was important when competing against the low-cost overseas market. 28 FEBRUARY 2018 Manufacturers’ Monthly
Growth and activity in the Australian economy over the last three decades has shifted from relatively low value manufacturing to higher value services-oriented industry “Innovation must pervade everything we do and we cannot accept the status quo – we must continue to strive to find a better way. In this light, I am hoping that we will get continued support from the government for research and developments for small to medium enterprises (SMEs) in the coming months and years,” Kittel said. He also added that among platforms like Australia’s premier manufacturing awards, the Endeavour Awards provide the perfect platform to remind Australian businesses that the best is still yet to come. “In my opinion, I think that the Endeavour Awards is a platform for manufacturers around the country with industry wide recognition and acknowledgement of the commitment of their teams,” Kittel said after the
2017 Endeavour Awards night. With more established companies like Redarc leading the way into 2018, this has encouraged start-up companies like Yumarr Automation, led by directors and founders Nicky Guenther and Holger Salow, to burn and shine bright in Australia. Operating from facilities in Australia and Germany, they provide sensor-based automation solutions for various heavy industries like mining. This recent start-up, which was the winner of the Outstanding Start-Up award at the most recent Endeavour Awards, has identified the growing optimism in the adoption of automation technologies for these industries and they are a big believer in safety. At the moment, they are technology partners with
big mining names like Rio Tinto and Atlas Copco. “Automation can allow the complete separation of the machine operator from the hostile situation and to monitor and control the machine from a safe remote location,” said Guenther. As for receiving the award, they have described it as a great honour and hope to reap more at the coming 2018 edition. “It was a great honour for us, especially as a start-up, and an enormous acknowledgement from the industry to be chosen out of many other outstanding companies with remarkable solutions,” said Salow. Visit endeavourawards.com.au for more information on nominations and sponsorship details. manmonthly.com.au
Plastics IN MANUFACTURING The Australian manufacturer moulding its own identity As a manufacturer, finding your place in a competitive marketplace often means attempting new ideas that have the potential to disrupt the industry. At A Plus Plastics, the family business is setting the tone as well as meeting industry demand.
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T the turn of the millennium, Matt Holloway and his father took their moulding business into a new era. From humble beginnings, A Plus Plastics is now in its own rights an automated injection moulding manufacturer – distributing a homegrown production line, in addition to its commissioned work the business was originally built on. A Plus is now leading the plastics industry in the design and manufacture of rigid plastic containers for packaging, materials handling and supply chain logistics market. It was in 1973 when company founder, John Holloway, bought the first injection moulder for his Sydneybased firm. At its inception, he relied upon large orders by the truckload to afford to invest in more workers and more machines. In 2007, his son took the helm and the business into unchartered territory. With the dawn of disruptive technology, he and his father, who is now the company’s chairman, had the foresight to commercialise their own range of product lines from a variety of different materials. Almost two decades later, and the business still thrives on its ‘familyrun’ status, while embracing new technologies that have made it a reliable contributor to the global supply chain. “We have had to change the ways we do things to stay competitive and the establishment of our own proprietary products has done that,” Holloway said. “My father didn’t have any of his own products, so companies would approach him and request large quantities of different components that they wanted to be made as part contract service, which still makes up 50 per cent of our business. “When we bought the company manmonthly.com.au
A Plus Plastics’ machines mould up to a 7kg shot of plastic with a clamp force measured to 1,400 tonnes.
back in 2001, we recognised that manufacturing in Australia was headed towards a pretty tough climate – with a strong dollar at the time and strong competition overseas – so that’s when we put a lot of capital into our own proprietary products.” As a managing director who has grown up in the business, Holloway has strived to maintain its roots as a contract injection moulder its client base can rely on. The company’s machines can mould up to a 7kg shot of plastic with clamp force to 1,400 tonnes all equipped with some form of automation, whether that is a three- or six-axis robot, which increases efficiency, consistency and improves cycle-time. “If you look at our productivity, you can probably measure it somewhere between 20 and 30 per cent from a tangible figure of output,” Holloway continued. “Without automation, it would otherwise mean having an operator on the side of the machine, opening and closing a door. “Electricity is one of our biggest overheads working in the manufacturing industry.
“Our machines hours have increased our electricity usage but the cost has remained very stable and comes down to how efficient the machines are.” As a one-stop shop for the moulding and tooling industry, A Plus Plastics has put itself in a position where it can serve the client at any stage of production – from design and prototyping all the way to the final stage of mass production This, Holloway says, is the trend manufacturers are following. While labour costs overseas are generally cheaper than here in Australia, by automating the workshop, manufacturers like A Plus Plastics are able to complete a variety of orders at a more competitive rate. A Plus Plastics manufacture a range of engineering polymers from recycled polypropylenes, ABS, and styrenes, right through to tensile glass filled Nylons. “We complete a lot of inquires online through our web page for moulding assistance,” Holloway said, “but we do have a reputation in the marketplace which means companies will seek us out. “We are able to offer that turnkey
solution for our customers, which means we can handle design and prototyping and the production of commissioned tooling overseas here in Australia.” Forecasting advancements in the industry, the company is now writing its own story – no longer relying only on demand but also setting the tone for the industry, which has sustained a steady growth that can often evade Australian start-up manufacturers seeking a foothold. “With our own products, we are in control of our own market,” Holloway continued. “We sell our products to a well-established distributor base and often our products become part of their business too. “Generally, the margin on our own products is a lot healthier, so there is a lot less risk. In the marketplace, we are seen as an alternative manufacturer for high-volume production work compared to our larger competitors here and overseas. “There are a few major moulding companies in Australia and we are seen as a flexible alternative, as a familyowned company, which customers continue to find appealing.” Manufacturers’ Monthly FEBRUARY 2018 29
Manufacturing STRATEGIES Banking on a better future for manufacturers St.George Bank has championed its unique industry model tailored towards manufacturing growth. St.George’s head of manufacturing Matthew Kelly tells Manufacturers’ Monthly.
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S the industry adapts to new technologies and a greatly diversified supply chain, the manufacturer is urged to embrace change early. Whether it is around robotics, 3D printing or data tracking, advanced manufacturing is playing a big part in the future of Australia’s industries and is aided by better aligned government policy and academic curriculum. With new ideas and opportunities for innovation, expansion is becoming a reality for ambitious businesses; enabling manufacturers to make an impression on the international market. To commercialise a good idea and to enter the global supply chain, financial backing is essential and, ideally, comes in the form of a partner that has their interests at heart. St.George Bank is doing just that, having adopted a unique industry model that leads with banking specialists who know the industries they serve inside and out. “What makes it unique, for us, is to tailor not only product but also value-added solutions for the industry,” said Matthew Kelly, head of manufacturing and wholesale for St.George’s NSW division. “For me, the exciting thing about that is that there is no other bank in New South Wales, or Australia, that focuses specifically on the growth of manufacturers.” The bank has partnered with a number of groups, offering complimentary R&D reviews, eligibility for government grants, and provides business reviews as part of its business model. It is also benefitting industry efficiency by working with customers to strip back operational costs and to consider smarter energy solutions. Toward the end of 2017, St.George was also in talks with 30 FEBRUARY 2018 Manufacturers’ Monthly
TAFE to build an industrywide training solution following discussions with the industry around the need for upskilling and workforce transformation. “This is our way of giving back to the industry,” Kelly continued. “Connecting with academic institutions around innovation – and especially robotics and 3D printing – innovation in the manufacturing sector is critical and it is those companies in the advanced manufacturing space in particular which will succeed, grow and thrive.” The strategy, Kelly explains, is to revise the role of the banking professional within the industry. The model has been up and running for two years and has already seen St.George build a manufacturing-specific business chain and knowledge base unrivalled by other Australian banks. In that time, the bank was a finalist in the Business Banking Awards for industry specialisation. “When I was asked what sector I wanted to work in, I jumped at the chance of working in the manufacturing and wholesale, space,” Kelly said. “Partly because I think they are core businesses – but also because I think there is an opportunity to help manufacturers prosper & grow. “We are trying to help connect them globally, so going about that as a bank and a business is the next step on our journey. “We are talking to our colleagues in Asia around this global connectivity piece, which manufacturers are wanting to embrace to grow their businesses.” Connecting its customer base home and abroad, Kelly says St.George is informing the industry of the opportunities and pitfalls when it comes to expansion, with Asia – and more specifically China – dominating the manufacturing space.
We have bespoke portfolios, which mean that our bankers really talk the language of the industry, which is the foundation pillar of industry specialisation.
Matthew Kelly, head of manufacturing and wholesale for St.George’s NSW division.
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ManufacturingSTRATEGIES have specialisation in food, pharmaceuticals, materials and equipment, and also consumer goods,” Wilson said. “We have bespoke portfolios, which mean that our bankers really talk the language of the industry, which is the foundation pillar of industry specialisation.” The team sits across 23 industry sectors to work out the best way to align St.George’s offerings to the industry and provides value to customers, this includes:
St.George is connecting with advanced manufacturers. As part of St.George’s personal growth, it is constantly asking questions of the manufacturer here in Australia. Heading the bank’s Industry
Innovation division, Michelle Wilson’s team of specialists is laying the foundations for the St.George philosophy. “In manufacturing, we
1. Talking the language of the industry and knowing the trends of the manufacturing market; 2. Connecting with customers and the industry in relevant ways; 3. Owning a deep knowledge of working capital, supply chain management and the impact it has on a manufacturing operation;
4. Driving value through industry connections, including educational and government bodies. “Instead of having banking discussions, we are actually having industry conversations with the customer and are able to add value through the different programs we have in place,” Kelly continued. “In response, by collecting all that industry data and owning an enormous business chain ourselves, we are able to grow connectivity for the customer too, creating business opportunities for them. “Our philosophy really is through this model to help industry prosper and grow by helping the individual manufacturer grow. “We are a bank that is committed to manufacturers in Australia and, if it continues to help the industry grow, people are going to want to be a part of that.”
Speaking the language of the manufacturer is key to St.George’s industry model.
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Manufacturers’ Monthly FEBRUARY 2018 31
AUTOMATION & ROBOTICS March 2018 Issue Whether operating a small company or a big business, there are a number of robotic component solutions that can perform a number of different functions. Industrial robots can assist in reducing costs, improving quality, increasing production and addressing safety issues on the factory oor. While a complete automation solution might not be appropriate for smaller businesses, industrial robotic components and machinery can be added as needed, and customised and expanded for business requirements. In the February edition of MM, we proďŹ le the companies offering customised robotic solutions.
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IOT IN MANUFACTURING The road to IoT adoption Dr Leon Prentice, research program director, CSIRO and presenter at this year’s Industrial Internet Summit shares his thoughts on how Australian manufacturing is doing with IoT adoption.
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ITH a strong close to the last quarter of 2017, manufacturing in Australia looks to continue its steady rise through. However, a continuing bugbear of the industry that prevents it from taking bigger strides in growth would be the need to evolve and diversify, according to the Advanced Manufacturing Growth Centre (AMGC). Funding from the Federal and state governments have indicated the right intentions from the political end but it does take two to tango. Dr Leon Prentice told Manufacturers’ Monthly that he believes that there has been some uptake of IoT technology that has made a difference to individual companies. However, he believes that is based on a wide spectrum of manufacturers and most companies really haven’t gotten onto the IoT adoption bandwagon much at all. “In particular, the overwhelming number of Australian companies are small. Companies with fewer than 20 people make up about 88 per cent of all Australian manufacturing companies,” said Prentice. “Those kinds of companies just do not have the capacity to take on new digital technologies that will make a big difference to their companies,” he continued, adding that, it is usually the large companies that have the capacity to put something in place to manage the information and infrastructure that are actually adopting new technologies. Prentice pointed out two critical things – raising the awareness within the leadership of these smaller companies (CEO, CFO, operations manager levels) that these types of tools exist. “For example, a lot of companies are just not aware that they can measure the idle times of machines,” said Prentice. The second point is about making the goal manageable. “It is about finding the easy win somehow. manmonthly.com.au
Instead of having companies going to invest $100,000 in an SAP system or something similar, they could invest in something that is worth say $10,000 that sees an improvement which is measurable and easy to understand. Then, there is certainly more value there,” said Prentice. Of course, it is not feasible to expect everybody to go full on with IoT enabled systems and have processes with dashboards filled with data but Prentice suggests that SMEs can start with a process, piece of machinery or production item that they make and work out how to analyse that using these basic IoT tools and then from there build capability to use that across the board. “The IoT manufacturing technologies are about two sides of a coin – one is gathering the data or the information itself, while the other side is using the data and actually making the improvements out of it. I think at the moment a lot of it has been about the gathering of the data and systems to monitor or evaluate, but there is not that much emphasis on how companies use that information to make improvements,” said Prentice. CSIRO plans for advanced manufacturing One of CSIRO’s initiatives at the moment is looking at customised product lifecycle management (PLM) technologies. Additive manufacturing is much more complex compared to traditional part machining assembly because it is about creating material all the time instead of starting from a block and machining it into shape. “It used to be that you would buy billets of aluminium and machine it back to the shape that you wanted and the main issues were certification of the billet itself and shape that you intended,” said Prentice. “But when you are starting with powder and using a laser to build up a part, your certification and understanding of the part has got
Additive manufacturing is much more complex compared to traditional part machining assembly because it is about creating material all the time instead of starting from a block and machining it into shape.
to be at a microscopic level. This is because you’re basically making new material at a 20-micron scale. So, the process to do the design for that differs greatly – from the assurance and sign off on design to make sure the design accounts for how you are going to do the process, through to post build analysis. All these different parts coming together to say that this part is as intended and should be qualified for its intended use becomes essential.” At the moment, it is about how we manage the information flow through that process and in particular, the data. Whether it is the designers signing off something particular in the cloud or the machine operator who has a machine that is calibrated and certified and then uploading the file – all the digital information needs to be assessed and procured in the right ways, in order to end up with a final part and its digital representation and assurance. “So instead of emailing Computer Aided Design (CAD) files or sending photos of parts you built, it is suddenly a far more robust and assessable piece of technology,” said Prentice. One other thing that CSIRO is
doing is the understanding and modelling of system at multiple scales – the building of a digital twin of a part or process. “So, you have a physical process that the company may undertake (physical, chemical or mechanical), having the modelling side to predict what you’re going to make before you actually make it. What we are looking at is the process under it at all levels and this simulation gives you access to all parts of this in great detail,” said Prentice.
Fast Fact Dr Leon Prentice leads the High Performance Metal Industries Research Programin CSIRO’s Manufacturing Business Unit. His programincludes CSIRO’s metal powder processes, from extractive metallurgy, through powder modification, and the range of additive manufacturing capabilities within the ‘Lab22 Innovation Centre’. The group focuses on research and collaboration with local and international industry partners.
Manufacturers’ Monthly FEBRUARY 2018 33
What’sNew Lightening the load in heavy engineering
COVERING maintenance departments and fabrication workshops to international suppliers for the railway, automotive and aerospace industries, Dormer Pramet’s product program is strengthening its position in the market. A particular focus at EMO 2017 in Hannover was the company’s offer for the heavy engineering industry. An example of Dormer Pramet’s growing reputation in this sector is the support provided to Robert Nyblad GmbH, a manufacturer of components for the wind power industry, based in Papenburg, Germany. Nyblad’s challenge involved a heavy-duty casting application, machining a 20-tonnes cast iron rotor shaft, which forms the drivetrain in conjunction with the turbines and generator. Dormer Pramet 0870 850 4466 www.dormerpramet.com
D-Link Launches next generation layer 3 stackable managed Gigabit switches D-LINK has launched its next generation Layer 2+/Layer 3 Managed Gigabit switches – the DGS-3630 series. Loaded with advanced software features and a lifetime warranty, the new DGS-3630 switches deliver high performance, flexibility, and fault tolerance for maximum return on investment. Capable of operating in the core, distribution or access layer of the network, switch stacking and easy management make the DGS-3630 switches suitable for a variety of applications in business networks of all sizes. There are currently three models available in the DGS-3630 series. An upgradeable software image provides a flexible approach to system management and allows network administrators to deploy a lower cost L2+ solution today, and upgrade to a L3 solution in the future as networking needs change and a full dynamic routing solution becomes required,” said D-Link ANZ managing director Graeme Reardon. D-Link 1300 700 100 www.dlink.com.au
New ultra-tight thief hatch reducing storage tank emissions EMERSON Automation Solutions has introduced a new spring-loaded thief hatch for use on low-pressure storage tanks in oil and gas and other industries. Storage tanks can emit vapors to the environment, which has resulted in tighter regulations and the need for improved emissions control from storage tank devices. To address this challenge, the Enardo ES-665 has been engineered with increased sealing forces, as well as with a tight and consistent fit of the sealing surfaces. The resulting emissions performance of the Enardo ES-665 thief hatch is an industry-leading 0.10 SCFH (standard cubic feet/hour) at 90 per cent of set-point. Along with Emerson’s other tight-sealing storage tank solutions, it also helps conserve tank contents as well as pressure and vacuum relief to accommodate tank pressure changes that occur under normal conditions. In addition to its ultra-tight emissions performance, the ES-665 includes: • An available centre assembly for improved performance of previously installed models • Multiple relief settings and material options for application flexibility • A latching and lockable lid for added security and safety Emerson Automation Solutions 1300 55 3051 www.emersonprocess.com.au
34 FEBRUARY 2018 Manufacturers’ Monthly
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What’sNew Data integration for IoT and Industry 4.0 applications THE new version of Softing’s dataFEED OPC Suite with REST Connector and support for NoSQL databases is now available. The REST Connector, which was already presented as a beta version at this year’s HMI trade show, enables data from automation networks to be integrated into applications supporting REST protocols. Data may originate from a variety of sources including control systems from leading manufacturers such as Siemens, Rockwell, Mitsubishi and B&R as well as OPC UA or OPC Classic servers. Together with its second new feature, the support of write access to NoSQL databases such as MongoDB, the dataFEED OPC Suite is ideally suited for IoT and Industry 4.0 applications. REST protocols are used in particular for communication with cloud-based applications, such as the Production Performance Manager of Bosch Software Innovations. NoSQL databases enable high-performance processing of large amounts of data. They are thus often the basis for advanced analysis methods (“Big Data Analytics”), which, for example, can be used for predictive maintenance. Efficient and reliable provision of production data is a key challenge for the successful implementation of IoT and Industry 4.0 applications. The dataFEED OPC Suite offers our customers and partners extensive possibilities
to implement these requirements for data integration in a simple, flexible and futureproof manner. Softing Industrial Automation +49 (89) 456 56-365 https://industrial.softing.com/en/startpage.html
BOGE advances development of its C series BOGE KOMPRESSOREN is developing a new, oil-lubricated screw compressor in the performance class of up to 22 kW. The C 22-2 LFR compressor will be available both with and without a receiver as well as with the option of an attached compressed air dryer. Further development will focus on ease of maintenance, noise reduction, and efficiency across the entire C series. One of these developments is a new, optimised airend for the 7.5kW to 11 kW range. The market launch of the new C-2 series should be completed in 2018. The performance segment from 2.2kW to 22 kW accounts for approximately two thirds of the market volume worldwide. With the C-2 series, we continue to develop our well-established C series, taking into account customer and distributor requests. Machines on receivers, and those with dryers, have a large share in this performance segment. Thus, in its redesigned version of the series of compressors up to 22 kW, the Bielefeld-based family enterprise gives highest priority to the technological development of the C-2 machines. These are suitable for receiver and floor assembly and will be available with an optional dryer. In this way, easy setup of a complete compressed air station will be possible in the smallest of spaces. The control system can be mounted variably – at the top or at the front for floor or receiver installation, respectively. This ensures that ergonomic criteria are fulfilled. In the frequency-controlled C-2 screw compressors, BOGE is replacing the belt drive with a direct drive in order to improve system features and meet increasing efficiency standards. For further energy savings, the company also offers an optional frequency-controlled fan and IE4 motors. As a result, sound level and power consumption are reduced. Thanks to a new component arrangement, annual maintenance can be conducted easily from one side of the machine. Additionally, a variable cooling air outlet enables flexible connection to the exhaust air duct for use of discharged heat. BOGE Compressors (Australia) +61 03 5940 3266 www.boge.com.au
36 FEBRUARY 2018 Manufacturers’ Monthly
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New energy storage with long buffer times THE new UPS-BAT/LI-ION energy storage device from Phoenix Contact with 924 Wh utilises lithium-iron phosphate technology, is available for pairing with the Quint UPS power supply with IQ Technology. It is designed to provide long service life in both standby parallel operation as well as in cycle operation, particularly with long buffer times. The energy storage device operates reliably even under extreme ambient temperatures ranging from -25 °C to +60 °C. Suited to long discharge times, or higher load applications, the UPS-BAT/ LI-ION/24DC/924WH (P/N 2908232) can support 24V supplies of 20A for 105 minutes, or 40A for 50 minutes at 20°C supporting up to three units in parallel with individual monitoring. When combined with the Quint UPS intelligent power supply, this device guarantees a high degree of system availability. It remains in constant communication with the power supply via a control unit that provides local fuses and ambient temperature sensing. This enables continuous monitoring and intelligent management of the energy storage device.
Installation is quick and easy thanks to auto detection and tool-free replacement during operation. Phoenix Contact 1300 786 411 www.phoenixcontact.com.au
Beamex introduces LOGiCAL – a free of charge, cloud-based calibration software BEAMEX introduces a free of charge, cloud-based calibration certificate generation software called LOGiCAL. It was developed to offer an easy-to-use, modern, cloud-based software for documenting calibration results. Beamex has been producing and developing calibration equipment for more than 40 years, and calibration software for over 20 years. In the process industry, most calibrations performed need to be documented in a calibration certificate. It is notable that many sites manually document calibrations using paper and pen, making it an inefficient process that is prone to errors. As a solution to the industry’s needs, Beamex has launched a new calibration software product called LOGiCAL. LOGiCAL reads the calibration results from Beamex documenting calibrators, such as the Beamex MC6 or Beamex MC4, and hence does not store any critical data in the cloud. When you perform calibrations using these calibrators, they automatically store the calibration results in their memory. LOGiCAL software can read these results and convert them into a PDF calibration certificate that you can either store or print. The LOGiCAL cloud communicates with the calibrators using a web service technology, meaning that the calibration certificate can be generated using any device connected to the internet and a web browser, given that the calibrator is connected to the computer and running LOGiCAL. It is compatible with most browsers, such as Chrome, Internet Explorer or Safari. The initial use of LOGiCAL will be available at no cost while further capabilities will become available as chargeable options. Beamex is committed to developing additional functionality in LOGiCAL based on user feedback and market requirements. The technology delivers a very high value to customers that today use pen and paper for calibration. LOGiCAL makes it easy for everyone to take their first steps towards a streamlined calibration process since it’s safe, has a small carbon OR environmental footprint and requires minimal IT support. AMS Instrumentation & Calibration 03 9017 8225 www.ams-ic.com.au manmonthly.com.au
Manufacturers’ Monthly FEBRUARY 2018 37
What’sNew
Futek LLB Series Application Laparoscopic Tool Calibration
MINIMALLY Invasive Surgery (MIS) and Single Port Access Surgery (SPAS) have dramatically reduced the risk and recovery time for patients for undergoing tumour extraction, heart valve and artery repair, and in-vitro fertilisation. Whether performed with a robotic surgical system or with the trained hands of a surgeon, precision instrumentation is required to work with the delicate tissues of the patient while providing a precise, secure grip without exerting excess force. The forces applied with robotic instrumentation must be calibrated so that visual and haptic feedback mechanisms report the correct applied forces during surgery. Handheld instrumentation requires verification of the applied forces so the tactile sensations felt by the surgeon are predictable and consistent. In this application we demonstrate the verification and calibration of the jaws of a laparoscopic instrument. As per the conceptual diagram, FUTEK’s Miniature Load Button (LLB130) is mounted to the grasping tip of a laparoscopic hand instrument. The load cell records force measurements, which can be used to calibrate the tool. Load feedback can then be displayed on either FUTEK’s IHH500 or IPM650 digital displays, or streamed through USB to a PC, this allows the data to
be examined to determine whether the tool is suitable for operation or if it needs to be adjusted. Pairing the SENSIT Test and Measurement Software with any of FUTEK’s instruments provides the user with the ability to datalog measurements and store them for record keeping or calibration history. FUTEK Advanced Sensor Technology 07 3868-4255 www.metromatics.com.au
Buying the compressed air you need OFTEN considered the fourth utility, like gas, electricity and water, it is possible to simply buy the compressed air you require with the Sigma Air Utility operator model from Kaeser Compressors, without the requirement to invest in capital equipment. The Sigma Air Utility operator model allows the compressed air user to purchase just the compressed air they require, in the same way you would purchase gas, electricity or water, and without the need to invest in capital equipment. Compared to operating a conventional compressed air station, contracting models such as the Sigma Air Utility offer a range of user benefits. The customer can immediately enjoy the advantages of a cost-effective, energy-saving compressed air supply with no need for initial capital investment. Planning, installation and operation according to the customer’s requirements and instructions are the responsibility of Kaeser. This allows users to save 100 percent of the investment cost of a compressed air station and removes the burden of having to allocate staff and funds for maintenance and servicing work. In addition, contracting models provide a key tax advantage - by obtaining compressed air at a contractually established price per cubic metre, fixed costs are converted into variable operating costs, which can immediately be claimed for tax purposes. Sigma Air Utility is one option for compressed air supply when rapid energy efficiency improvements are desired – in this case and many others, outsourcing offers a sophisticated solution. The potential savings that can be achieved with Sigma Air Utility compressed air contracting vary in each case. When a company changes to compressed air contracting, the contracting partner usually installs a completely new compressed air system to ensure full utilisation of any and
38 FEBRUARY 2018 Manufacturers’ Monthly
all potential energy savings. The degree to which compressed air costs are reduced depends on the system being replaced. However, it is certainly not unusual for customers to achieve savings of 30 per cent and beyond over the long term. Sigma Air Utility 1800 640 611 www.kaeser.com.au
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Low-cost level measurement. Radar sensor for water management. Reliable level measurement in water treatment facilities, pump stations and rain overflow basins. Open channel flow measurement and water level monitoring.
VEGAPULS WL S 61 ▪ Measuring range up to 8 m
▪ Can be used outdoors without restriction ▪ Flood-proof IP 68 housing
▪ Operation via Bluetooth with Smartphone, tablet or PC
Further information: www.vega.com/wls61
Phone 1800 817 135
Working alongside you to help build a better future At St.George we have a long, proud history of helping people, families and businesses like you to build a better future. We appreciate your business is unique. Our team of Manufacturing and Wholesale specialists are dedicated to delivering solutions that are specific to your business needs. We’re here to help you continue to build Australia, talk to us today.
Matthew Kelly Head of Manufacturing & Wholesale
Manufacturing & Wholesale
0412 265 197 manufacturingwholesale@stgeorge.com.au
stgeorge.com.au/manufacturing Things you should know: Credit criteria applies. Terms and conditions of products available on request. St.George – A Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 223714. WBF17/STG081