Manufacturers' Monthly March 2018

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Behind the cover Governments around the world made multibillion dollar investments to open up a whole new industry to satisfy future demands in electric vehicle batteries including that of lithium-ion batteries.

This means that there is a rapidly growing demand and investment in lithium for portable electronic devices and vehicle batteries, which ultimately has to be satisfied with the abundant global lithium resources. However, accessing these resources will become more difficult with devastating impacts on the environment, but efforts may still not be enough to satisfy future lithium demands.

Last year, Tesla switched on the world’s biggest lithium ion battery

for the first day of the Australian summer in South Australia – a promise by Tesla’s CEO, Elon Musk, to build it in 100 days or it would be free. Premier Jay Weatherill proclaimed that South Australia was now a world leader in dispatchable renewable energy.

Despite detractors saying that the move is not a sustainable one with Australia still relying on two-thirds of its electricity on fossil fuel, the state is now getting 40 per cent of its power from the battery.

Moving forward, in this month’s issue of Manufacturers’ Monthly, we speak to experts in this field including CSIRO to get a better understanding of the next generation of energy provisions.

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Comment

SYED SHAH – Managing Editor, Manufacturers’ Monthly

To boldly go where diversity has not gone before

A

S Australian manufacturing covers new ground and continues to compete on a global scale, analysts have warned that companies need to be continually developing their understanding of specific emerging markets while catering to the needs of their existing customers. A recent McKinsey report Manufacturing: The next era of global growth and innovation, said that manufacturers need to be agile in the development of strategy – using scenario planning rather than point forecasts, for example.

In addition, governments and manufacturers will have to make calculated risks on long-range opportunities, such as tapping new markets in developing economies, or trying out new materials, but must do so in ways that minimise risk.

One such long-shot that seems to be working out is the South Australian government’s collaboration with Tesla’s Elon Musk to energise the South Australian power grid while the rest of Australia watches on to see its long-term feasibility.

At last year’s IIoT Summit held at Sydney’s SMC hall, the keynote address highlighted the critical challenges manufacturers will be facing, including how to approach 6 MARCH 2018 Manufacturers’ Monthly

footprint decisions in a more nuanced way. Discussions floated around the fact with labour-intensive industries generally following the path of low wages.

Others, however, with more complex needs, have to consider factors like low-cost transportation, consumer behaviour and even hire and rental of skilled employees for specific projects.

The Mckinsey report also gave three points of how manufacturing’s role is changing globally.

Firstly, it points out how the industry points towards the economy shifts as nations mature. It says that in today’s advanced economies, manufacturing promotes innovation, productivity, and trade more than growth and employment. In such countries (Australia included), manufacturing also has begun to consume more services and to rely more heavily on them to operate.

Secondly, manufacturing is not a monolithic industry. It is a diverse sector with groups of industries, each with specific drivers of success.

Thirdly, it said that manufacturing is entering a “dynamic” new phase.

This is the emergence of a global consumer class in developing nations with constant innovation sparking

endless demand, with this, it says, this opens up more opportunities albeit in a more uncertain environment.

Now, I’m going to add one more point to that list. Diversity in the industry. According to The Manufacturing Institute and Deloitte’s report How manufacturers can attract, retain, and advance talented women, women still make for up less than a quarter of the global manufacturing labour force.

Specifically, it is obvious that the industry as a whole has been less successful than others in terms of gender diversity.

Here in Australia, there are several key events that promote diversity in the manufacturing space.

Standout conferences and awards that embody that ideal, while recognising the best in the industry, include the annual Endeavour Awards and the Women in Industry Conference and Awards.

These events bring together senior executives representing multiple industries within the industrial and engineering sectors.

They celebrate and remind manufacturers how they can best attract, retain, and advance talents in the manufacturing industry.

Last year, during the manufacturing track roundtable at the Women in Industry Conference in Melbourne, attendees held robust discussions that explored related challenges manufacturers face. There were several actionable recommendations to address the challenges – one of which was to invite more male senior executives to the event, not to discuss gender issues, but instead, how to improve the state of manufacturing here in Australia.

Other significant concerns that were discussed centred around finding enough talent to drive their organisations in the future and how vitally important women are in meeting those challenges. The keynote focused on the C-suite’s role in changing the corporate culture in the manufacturing industry, the perception from the outside, and what boardrooms can do to create enhance their image as ideal employers.

This year’s awards will be looking to garner an even larger response than last year’s. Attendees can expect to look forward to networking and discussing critical trending issues affecting the Australian manufacturing scene. manmonthly.com.au

Comment

INNES WILLOX – Chief Executive, Ai Group

Seven strategies for a competitive digital economy

I

n just about every industry we can think of businesses are now being digitally disrupted and transformed by digitisation in one way or another While the productivity benefits of digitalisation may be clear, concern remains about what digital disruption will mean to businesses and jobs, and how Australia can be globally competitive.

Manufacturing is one of the major sectors that Ai Group represents.

As manufacturers become more advanced, the traditional delineation between manufacturing and services is becoming more blurred through servitisation of manufacturing and further accelerated by digitalisation.

This presents manufacturers with a challenge and opportunity to re-examine their value proposition, discover where they create additional value for their customers and find new customers. They will also need to become more agile to respond to rapid changes in technology, customer demand and expectations, and global and local competitive threats.

The emerging disruptive technologies currently being discussed in the industry (although early in development, adoption or implementation) that will likely influence business models and strategies in the future include IoT, 3D printing, robotics and autonomous machines, AI and machine learning, and blockchain.

While these technologies present increased business productivity, they also create new attack vectors for cyber security threats. In the immediate term, the new data breach notification scheme (commencing towards the end of February) may also lead businesses to generally review their cyber security posture and digital investment decisions.

In terms of the workforce, there seems to be a mixture of anticipation, fear and scepticism around automation, AI and killer robots.

CEDA predicts that 40 per cent of current jobs (particularly those requiring only low-level skills) have a high probability of being replaced by automation within 10 to 15 years.

8 MARCH 2018 Manufacturers’ Monthly

AlphaBeta considers most jobs will change as a result of technology, not disappear; however, it will be critical for workers who lose their jobs as a result of automation to maximise automation’s economic benefits.

There is also an unaccounted individual and social benefit of nonwork time as a result of automation.

Whether people devote freed-up time to more work or non-work activities, the digital transformation of work would be a significant boost.

Ai Group believes that Australia should aim for steady and sustained improvements in benchmarks for global competitiveness and productivity. But our current state of play leaves much to be desired.

Productivity improvement is the long-standing Achilles Heel of the Australian economy. Emerging technologies and the way we use them (or do not) are a key part of our productivity story and will remain central to our policy solutions.

Our inability to successfully adopt and adapt digital and other new technologies has affected our global competitiveness as well as our own productivity. The World Economic Forum currently ranks Australia 21st out of 137 countries – we have been outside the top 20 since 2012-13.

To increase our global competitiveness, an aspiration could be for Australia to reach the top 10 in the World Economic Forum’s global competitiveness rankings, by addressing in part the technological indicators that impact on our overall rankings.

This includes improving government procurement of advanced technology; internet bandwidth; R&D university-industry collaboration; availability of latest technologies for businesses; business absorption of technology; and business capacity to innovate.

Another outcome should be for more businesses to thrive through digitalisation rather than fold – a shift from the global negative trend since the turn of this century.

Other aspirations should also be for more businesses to leverage global supply chains and have a domestic

environment that encourages more businesses to operate in Australia.

Central to how these impacts play out will be workforce and management skills, the extent of familiarity with the technologies involved, and the extent of collaboration and preparedness in grasping opportunities and combatting evolving threats.

There are a handful of areas in which both Government and industry should set as policy priorities to build a globally competitive digital economy strategy: 1) E ducation, skills and workforce development – Ensuring our youth has the necessary skills is fundamental to industry success for our future workforce. Our current workforce is also a crucial contributor to industry’s success and will need help to transition including re-skilling Australia’s existing workers to possess the digital skills needed for today’s jobs.

• In schools, more coordination needs to be built around STEM activity, with greater industry participation.

• At the higher education level, we need to see improved practices around work-integrated learning, to improve workplace readiness and industry-university collaboration.

• At the VET sector level, having VET included as part of government agendas around innovation, STEM and higher order skills.

2) Technological infrastructure investment – Infrastructure investment in a mixture of communication platforms will enable the growth of the digitally enabled economy (including the NBN, 5G and other IoT communications platforms).

Greater attention needs to be paid both to the delivery of technology and to maximising benefits flowing from that.

3) Digital leadership and culture – Leadership in investment in and use of digital technologies can drive growth directly and inspire others. Leaders need to take charge and maximise their benefits both through strategic choices and

innovative opportunities in their day-to-day operating environment.

4) R eliable, secure and safe environment (including cyber security) – Businesses require a digital environment that is sufficiently reliable, secure and safe to maintain the confidence of all types of users. As digital technologies continue to evolve, businesses and governments need to work together to manage cyber security, resilience and safety.

5) I nnovation and collaboration – Digital technologies are an enabler to innovation, which is itself essential for sustained growth in individual businesses, broader sectors and Australia as a whole.

We need to harness a wider range of capabilities through better collaboration between businesses, researchers and governments, and put this in service to a clear strategic agenda. Public policy support for innovation should be stable and informed by strategy, and should address all parts of the innovation system.

6) L egal, regulatory and standards (interoperability) framework – Our regulatory and standards framework is fundamental to promoting investment in, and use of, digital technology. This framework needs to be sufficiently flexible to accommodate rapid changes in technologies that lead to new types of business models and competition, while also protecting consumers’ interests.

7) G lobal integration – The deep international connectedness of a digitally enabled economy means that no one country or industry can develop policies in isolation.

Australia needs a global outlook on digitally enabled economy issues – some of which can best be addressed in a collective manner across the world.

As a nation and industry, we need to work together to ensure we are doing all we should to lift capability across the economy and seize the digital opportunity, but most importantly help Australia be sustainable and competitive. manmonthly.com.au

News@MM QLD’s $50m technology hub for drones

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10 MARCH 2018 Manufacturers’ Monthly

A $50 million centre to develop drone and robotics technology for the Defence Force will be built in Queensland. The Queensland state government welcomed the Federal Government’s decision to back Queensland’s bid to host the Defence Cooperative Research Centre (CRC) for Trusted Autonomous Systems.

It will be a national facility that develops technology like drones and robotics for the Army, Navy and Air Force.

Innovation Minister Kate Jones said the location of this Centre in Queensland was a vote of confidence in the state’s innovation and technology capabilities.

“This centre will draw together industry, researchers and local businesses to work with Defence to develop new technologies for drones and other unmanned vehicles,” she said.

“This will develop critical mass in key technologies like artificial intelligence, robotics and autonomous vehicles and will position Queensland as a global leader in these areas.”

State Development Minister, Cameron Dick, said the Queensland government recognised that defence was a critical industry for the state, employing approximately 6,500 workers.

In 2015/16, Queensland companies were awarded more than $4.2b in Australian defence contract payments.

“The Government committed during the election campaign to this bid and to the creation of Defence Jobs Queensland – recognising that the

defence industry can generate jobs and business for Queensland,” Dick said.

The State Development Minister said an important feature of the proposal would be to develop sites for testing, trials and evaluation of drones.

“We will invest in test facilities, including large drone zones in regional Queensland – both aerial and marine as part of the CRC.’’ Both ministers recognised the capability that global companies like Boeing, and small companies like EPE and Nova Systems, contribute to Queensland’s leading technology in this area.

“Our supply chains in Queensland are a major asset both for the Defence Force and for Queensland,” Dick said.

“The Queensland Government is proud to have the Queensland University of Technology, University of Queensland and Griffith University as key partners in this bid,” Jones said.

“The bid is also supported by capacity across all other universities in Queensland.

“This technology will have application not only in defence but in using drones in areas like agriculture and the environment.”

Queensland will contribute a Brisbane-based headquarters for the CRC, world-class testing ranges, support research and technology projects, support industry to develop standards for autonomous systems, and the development of platform technologies for unmanned aerial systems. manmonthly.com.au

News@MM Data61 and Zongmu partner to research technology on autonomous vehicles A new partnership between CSIRO’s Data61 and Chinese self-driving technology company, ZongMu Technology, is aimed at solving the problems of avoiding pedestrians and vehicle collisions by equipping vehicles with computer vision, an intuitive way to allow a machine to see and understand the environment the way humans do and react to hazards.

The Smart Vision Systems Group at Data61, led by Dr Nick Barnes, will work with ZongMu to develop algorithms to estimate the space between objects according to the vehicle’s motion and predict the potential hazards of moving objects.

The market for self-driving vehicles is expected to jump from US$42 billion (A$53 billion) in 2025 to nearly US$77 billion (A$98 billion) by 2035, as more organisations compete to

develop a truly autonomous “Level 5” vehicle – a car that can handle all tasks and drive anywhere.

“Computer vision is the technology that allows autonomous vehicles to determine the difference between what is pavement and what is a drivable road,” Barnes said.

“Unlike laser sensors that rely on a series of points to identify hazards, computer vision offers richer information and a deeper understanding of road scenes through 3D image analysis, enabling safer automated driving.”

Dr Shaodi You, senior research scientist at Data61, said the technology would allow autonomous vehicles to quickly react to any hazards at a distance of 10 metres or further to avoid collisions.

“Our technology will allow self-

driving cars to more quickly detect and avoid hazards, understand and obey road rules, and to determine their exact location in relation to other moving vehicles and landmarks in a given environment,” You said.

“The laser sensors used by the majority of companies are prohibitively expensive.

“On the other hand, the computer vision algorithms we’re developing with ZongMu cost one-tenth the amount and will allow commercial and truly autonomous cars to reach the road in a much shorter time frame.”

Shanghai-based ZongMu is a vendor of Advanced Driving Assistance Systems (ADAS), technology used in vehicles to enhance driver and road safety.

ZongMu’s chief executive, Mr Tang Rui, said the company was bringing

cutting-edge, AI-based algorithms into automotive grade computing platforms to make self-driving cars a commercial reality.

“Our self-driving technology is already being used by China’s leading car makers, but Data61’s expertise in computer vision will be imperative to our goal of bringing self-driving cars to market,” Rui said.

“We pride ourselves on providing our partners with high-level autonomous driving technology affordably and with the highest safety standards.”

Data61 CEO Adrian Turner said the partnership would speed up the hotly anticipated arrival of commercially viable self-driving cars and ultimately contribute towards seeding a new industry and ancillary services.

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Manufacturers’ Monthly MARCH 2018 11

News@MM World’s largest virtual power plant to create 500 jobs in South Australia The world’s largest virtual power plant will create more than 500 renewable energy jobs – with South Australian manufacturers set to play a key role.

Around 250 new jobs will be created through the installation of Tesla Powerwall 2 products on as many as 50,000 state homes over the next four years.

Up to 260 extra jobs are also expected to be created throughout the supply chain, with the government’s contract with Tesla stipulating that local contractors must be used.

The impact of these projects will be explored more at the Australian Energy Storage Conference and Exhibition, running from May 23-24.

“South Australian jobs are our number one priority, and I want South Australia to be the epicentre of the renewable energy industry,”

said South Australia Premier Jay Weatherill.

“More renewable energy means cheaper power for all South Australians, but it also means the jobs of the future.

“We want South Australian companies to reap the benefits of our major renewable energy projects, which is why we insisted upon local manufacturing for the virtual power plant.”

The State Government will also contribute $1.25 million to help South Australian businesses secure contracts on major renewable energy projects.

The funds will help local companies meet costs when preparing their pitch for large-scale projects.

More than 6,500 South Australians have already registered an expression

of interest to host a solar and battery system as part of the virtual power plant.

“With the Tesla battery at Jamestown in place, the Port Augusta solar thermal plant under development, and now the world’s largest virtual power plant

announced, South Australia is leading the way in the storage of renewable energy,” said state energy minister Tom Koutsantonis.

“This is a booming global industry and we want as many jobs in this sector as possible created here in South Australia.”

The State Government will be contributing $1.25 million to help South Australian businesses secure contracts on major renewable energy projects.

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News@MM Fujifilm to take over Xerox for $7.6b Japan’s Fujifilm Holdings will take over Xerox Corp in a US$6.1 billion (A$7.6 billion) deal, combining the US company into their existing joint venture to gain scale and cut costs amid declining demand for office printing. This transaction has been unanimously approved by the board of directors of Fujifilm and Xerox on January 31st, and January 30th respectively, according to a Fujifilm press statement.

With a decreasing demand across many sectors especially the traditional printing services, Xerox has struggled to find new sources of growth. In addition, Fujifilm is also trying to streamline its copier business with a larger focus on document solutions services.

The two companies will combine by Xerox becFuji, and Xerox will change its name to Fuji Xerox (hereinafter “New Fuji Xerox”). will 1 Projekt1 11.01.18Fujifilm 08:55 Seite

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acquire 50.1 per cent of New Fuji Xerox, and the company will maintain its NYSE listing.

The combined company will maintain the Fuji Xerox and Xerox brands within its respective operating regions.

Both companies hope that under a globally unified management strategy, the new entity will further accelerate its business growth and offer new value to customers.

New Fuji Xerox will benefit not only from its size but also from its solid management resources, including strong brands, latest technologies and excellent human resources that support these brands, global marketing capabilities and excellent client base.

Also, by leveraging Fujifilm’s vast range of technologies, as well as its experience and knowhow in creating new businesses, New Fuji Xerox will be looking to accelerate its transformation

as a leading company not only in the office document business, which it has the No.1 position in, but also in commercial printing. This centred around inkjet, as well as various types of industrial printing and solution services that improve operational processes and productivity.

The combined company is expected to deliver US$1.7 billion in total annual cost savings by 2022, with approximately US$1.2 billion of the total cost savings expected to be achieved by 2020.

As part of this cost improvement initiatives, the existing Fuji Xerox will implement a fundamental structural reform in order to improve earnings and productivity, and transform itself into a lean company.

According to reports from both companies, New Fuji Xerox will accelerate value creation that leads to productivity improvements in the

office-related business by combining with Fujifilm’s vast range of marking technologies from imaging to industrial applications, and utilisation of the company’s management expertise and experience in business transformation and improve its earnings capability.

Fujifilm will continue its investments in growth areas such as healthcare and highly functional materials, further accelerating the growth of the overall Group.

The acquisition will look to boost all segments of the business from imaging to industrial applications.

Manufacturers’ Monthly MARCH 2018 13

Manufacturing PLANTS Staying ahead of the game Manufacturers’ Monthly visited Dana Australia’s headquarters and assembly facility to find out how it has managed to stay profitable through the transition of the automotive industry.

Syed Shah reports.

D

ANA was founded in 1904 and currently employs thousands of people in 33 countries across six continents. It specialises in efficiency, performance and sustainability initiatives for powered vehicles and machinery. Listed on the New York Stock exchange, the company has reported sales of more than $7.5 billion in 2016.

Early last year, Dana opened its new Australian headquarters, manufacturing facility, and aftermarket distribution centre in Keysborough, 37 km southeast of Melbourne. The purpose-built 10,000 sqm facility replaced an existing Dana facility in nearby Hallam.

At the new grounds, Dana continues to remanufacture axles for passenger vehicles as well as the commercial vehicle market, and also services a major Australian customer with assembly of front and rear suspension modules for sedans, SUVs and drive shafts.

In the heavy-duty truck space, Dana is a recognised brand for the reliability and durability of their product range. The facilities in Australia assemble drive and steer axles for local truck manufacturers as well as the assembly of heavy duty drive and steering shafts.

In addition, the company manufactures and assembles industrial driveshafts for industrial applications. Dana’s GWB brand has been recognised as the global standard for technical innovation, quality and performance in driveshafts for these applications.

The employees at Dana get together daily prior to the start of operations to go through any production or communication issues to ensure smooth operations through the day. Ercan Ileri, group leader for Dana Australia’s Keysborough facility, explained to Manufacturers’ Monthly that transparency and traceability

14 MARCH 2018 Manufacturers’ Monthly

Now, more than a hundred years old, it is one of the most profitable companies in the US.

was critical on the work floor.

“Communication is key. It may just be about 10-15 minutes, but it is our most important meeting of the day for our operations,” said Ileri.

The Manufacturers’ Monthly team was then taken around the facility through the various assembly processes including the one that produced the drivelines for major customers like Volvo. “We could not produce any more than 35 shafts over two shifts but when we re-imagined our efficiency within our processes, currently we increased it up to over 40 per shift which is well above double,” said Ileri. He also mentioned that all parts are manufactured by Dana in various overseas facilities and they are in full control of the quality standards of their products.

While most of the measuring, cutting and deburring of the shafts

and drivetrains are still semi-manual, the move to automated cutting assembly processes is not far off for Dana. “There are some machines within the assembly line that we are exploring to replace with fully

automated systems. I have been to Germany to view some of these machines where it requires only three operators from cutting, assembling and balancing. That machine can potentially produce 40 shafts in an

The company believes in doing its part to keep manufacturing local in Australia and retaining local jobs.

manmonthly.com.au

ManufacturingPLANTS

be an imperfection in the welds later during the quality testing and inspection stage, we might re-work the part again or reject it totally,” said Ileri.

We came into this new facility to grow Dana further but we’re already thinking of expanding our operations further and are committed to Aftermarket service and growing Australian manufacturing. keeping manufacturing alive in

further and are committed to growing Australian manufacturing. Our managing director, Nick Stavrakis is already guiding us through this new phase and are excited to see where the coming months and years take us.”

Australia

hour. But at the end of the day, it really all depends on required volume, efficiency and costs versus output,” he said.

“Should we reach the point where we require a volume increase that befits the purchase of that fully automated machine, then we will consider it because it is good for the business. Otherwise, it is not justifying the return of investment (ROI) at our current required output.”

Because the Australian automotive market has become more niche, the demand has streamlined and businesses like Dana need to be selective when looking towards new technologies. “We must always be looking at new technologies to grow our business, but it is always a case of ‘if we require it, we’ll go for it, if we don’t, then we don’t’,” said Ileri.

Improvements to the assembly plant Despite the structured and neat look of the assembly plant, Ileri said that there still needs to

Dana’s facilities in Australia assemble drive and steer axles for local truck manufacturers as well as the assembly of heavy duty drive and steering shafts.

manmonthly.com.au

be adjustments to the layout to maximise the output of the processes on the floor. “If you compare this (Keysborough) facility to the Hallam plant, this place is heaven. We are always looking at better efficiency and productivity on the factory floor,” said Ileri.

In the Remanufacturing of Commercial and Light vehicle area, he explained that while some of the drive heads come assembled, they need to be disassembled due to the different specifications required by the Australian market. “The ones manufactured in the US sometimes come in different ratios and we have to customise it for the Australian customers,” Ileri said.

Moving forward, he said that currently, as with many other parts that Dana usually brings in to disassemble and reassemble, they are looking at purchasing manufacturing equipment to assemble the loose parts in-house directly for the Australian market since it is more practical in terms of cost.

Dana Australia looks after its customers by making sure that they only employ the best qualified mechanics to work within the facility. “We only employ those who are certified to do the specific jobs assigned to them in the various stations – mechanics, welders and so on,” said Ileri.

Welding is an important process in the manufacturing of rear axles. “You have to be 100 per cent accurate in the welds of the parts, otherwise there might be a malfunction later on. We have jigs and drawings and a team that signs off on a check sheet. Should there

Should there be parts (loose or assembled) that are required urgently by a customer, Dana uses the vehicle off-road (VOR) process. Dana guarantees a 48-hour turnaround when a phone call is made. Ileri said that this is because Dana understands that in logistics and delivery, time is money.

So, the longer a truck is unable to move, the longer money is being lost.

“It can be any trucker from any company that is out on the road who calls in a mechanic who will then call us and request a certain part.

We endeavour to deliver it within 24 hours although we say 48 hours and this quickness really builds on our customers’ continued trust in us,” said Ileri.

Ileri said that Dana is committed to keeping its existing Australian assembly operations within Australia while retaining local jobs. “Our employees know this and are onboard to keeping this ‘keeping it local’ philosophy alive,” Ileri said.

“We came into this new facility to grow Dana further but we’re already thinking of expanding our operations

The company believes in doing its part to keep manufacturing local in Australia and retaining local jobs.

Nick Stavrakis, managing director, Dana Australia Last November, Dana appointed a new managing director, Nick Stavrakis for all operations in Australia and New Zealand as well as the company’s service and assembly centre in South Africa. He had previously served SAF-Holland Australia as managing director for nine years.

Prior to that, he worked within the industry as CEO and has held business development and product management roles.

A seasoned industry veteran with a strong knowledge of Australia and New Zealand, he is already tapping in on his experience, growing Dana, executing enterprise strategy and growing the business in the markets he is in charge of. At the centre of his formula to growing the business, is communication.

“We communicate extensively within our organisation and it is about articulating and verifying that messages across the departments have been delivered and understood,” he said.

Stavrakis mentioned that it is through communication that the business is operating efficiently and delivering orders on time.

Manufacturers’ Monthly MARCH 2018 15

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Aligning Australia’s manufacturing and mining markets

T

HE more advances in disruptive technologies continue to change the landscape of the global value chain and next-generation materials enhance the manufacturing space, Australia’s rich resource sector is presented with added opportunity, according to researchers at CSIRO. For example, the overall demand for lithium will more than double by 2025, an expert panel predicted at last year’s Australasian Law Teachers Association (ALTA), and is dominated by the product’s value to the emerging electric vehicles market.

Lithium mining has therefore provided new growth opportunities for the Australian resource sector, the panel added, demonstrating how the manufacture of more sustainable and energy efficient products are setting new trends.

Dr Leon Prentice, research

manmonthly.com.au

director for Commonwealth Science and Industrial Research Organisation (CSIRO) Manufacturing, welcomed research into smarter materials but has said that more collaboration between the manufacturing and mining industries is necessary if Australia’s export market is going to thrive.

“Australian resources are being driven very specifically by design and customisation, and the merging of multiple technologies,” Prentice told Manufacturers’ Monthly.

“One of the big opportunities for manufacturers is agility, and the other is integration,” he continued.

“Manufacturers are aiming for more niche products that are more highly designed.

“In a sense, they are placing more emphasis on the design stage rather than the physical manufacturing step. Being able to change products

rapidly and to customise what you are making feeds back up the value chain.”

You can see this in just about any commodity, he continues – especially in the metal space where scientists are developing smarter materials that have longer life-expectancies and can fend off the degradation of product.

For example, if steel producers begin making ultra-high-strength steel, or perhaps unique alloys for specific markets, Prentice says that would enable the manufacturer to drive demand.

More can be done however, Prentice continues, to align these resources with the evolutions – and small revolutions – in the commercialisation of marketable commodities.

“The mining industry, to my mind, should be thinking more about what

CSIRO Science Image

While the manufacture of electric vehicles overseas is predicted to increase the demand for lithium-ion production in Australia, CSIRO Manufacturing’s research director Dr Leon Prentice discusses the importance of closing a disconnect between the country’s manufacturing and mining sectors.

sort of products they can add value to at an early stage, so manufacturers can use [commodities] more readily,” he said “However, I don’t necessarily think our resource industries have been good enough at taking these advances on board and they have been pushing the same products to market and expecting others to take them up from there, which tends to happen overseas,” Prentice added.

Connecting both markets There is still a disconnect between advances in manufacturing and what Australia’s commodities sector chooses to store and distribute, according to Prentice, whose research centres mainly on prospective titanium and lithium production.

“The two sectors (manufacturing and mining) need to talk together about what the future looks like, to Manufacturers’ Monthly MARCH 2018 17

Industry FOCUS

18 MARCH 2018 Manufacturers’ Monthly

CSIRO Science Image

better connect the value chain,” he said. “You can imagine that, even for commodities such as iron and steel, nobody in Australia is making steel powders for additive manufacturing.

“That is where new integration can happen directly – when someone eventually decides to make stainless-steel powder so that a mine site can 3D print stainless steel parts. That, as an example, could be revolutionary.”

Advanced manufacturing involves a broad set of enabling technologies and processes that all businesses along the value chain can use to improve their competitiveness.

Alongside a wide range of advanced manufacturers serving the mining and resource industries, together the Advanced Manufacturing Growth Centre (AMGC), the Innovative Manufacturing Cooperative Research Centre (IMCRC), and AusIndustry are working to help Australian manufacturers adopt these new processes.

One example of this partnership in practice is Imagine Intelligent Materials, a Geelong-based manufacturer, which has adopted advanced materials including graphene, which has potential in various industry sectors, from 3D printing to energy storage.

As a rule, the Australian government is committed to maintaining a manufacturing sector that is attractive to new investors, a spokesperson for the Department of Industry, Science and Innovation explained.

“This includes ensuring competitive business settings, reducing the risks associated with exploration, and building international trade relationships,” she said.

To do this, the federal government has funded programs and research aimed at enhancing the manufacturing and resource sectors, and therefore boosting investment opportunities.

Federal support includes: • The $100 million Exploring for the Future program announced

CSIRO is researching ways to smart materials can add value to manufacturing.

in May 2016, which facilitates investment into Australia’s underexplored regions; • Assistance for industries to better target areas likely to contain the next major oil, gas and mineral deposits; • Aligning Deep Earth Imaging with an industry-led initiative, which seeks to address the challenges of deep-exploration.

At CSIRO, engineers are developing new deep-earth imaging tools and technologies to better understand Australia’s resource base, and to unlock new deposits.

The biggest challenge however, according to Prentice, is going to be around distribution and storage of new, innovative materials.

“Ideally, the distribution should be more modular and more robust – such as microgrids,” he said. “By storing energy in electric vehicles for example, the question is how are we going to recapture that energy and then put it back into the grid?”

Automating the mining sector Jason Mair, product and marketing manager at the sensor specialist

Sick Australia, says that he has also recognised a recent shift in the use of automation between sectors, from manufacturing to mining.

“If we look at mining and the socalled boom of capital expenditure, we have now moved from construction to production with the construction of the processing facilities to extract these resources completed,” he said.

“The phase we now find ourselves in is one where we must seek efficiency gains and to look at how we can improve the way we extract the materials from the ground.

“There is a connection between how we do that and what we have experienced within the change of direction manufacturing has faced over the last 30 years here in Australia.”

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Using the latest in sensor and autonomous technology, Mair says the resource sector is finding new ways to improve its efficiency and productivity too, including better ways to distribute commodities into other sectors, including manufacturing.

“The outcome automation gives to mining is real-time traceability and improved safety,” he said.

“Because mining covers such a large geographical area, we can start to utilise technology by capturing data throughout the supply chain, and then using that information to produce real-time traceability throughout the extraction of Australia’s raw materials.

“If you are going to manufacture more efficiently and reduce costs, that is also true of the mining sector.

We can utilise technology to reduce the amount of labour required to extract materials from the ground.”

It means that labour can be used in other areas, Mair explains, such as predictive maintenance.

“Perhaps the future miner will be sitting behind a computer looking manmonthly.com.au

IndustryFOCUS

Engaging new energy The manufacturing sector is already making contributions to Australia’s search for a more reliable and affordable supply of power, and is being guided by the government’s proposed National Energy Guarantee.

How plants store and distribute its raw materials is changing too. At

manmonthly.com.au

CSIRO, its Low Emissions Technology Roadmap (2017) pointed to several opportunities for Australian industry in relation to future and renewable fuels.

For example, the report noted that hydrogen, via the gasification of coal, has the potential to become a “key export opportunity for Australia”, while aiding communities impacted by the decline of coal-fired power generation.

Another research paper recently released by CSIRO revealed that, in collaboration with Monash University and the University of Texas, scientists had discovered a “highly efficient and economically sustainable” way to filter salt and metal ions from seawater.

The paper, which was published in Sciences Advances, gives light to research into next-generation materials such as metal-organic frameworks (MOFs), which are presenting real-world uses.

“In the battery materials market,

A Rio Tinto iron ore shiploader in operation in the Pilbara.

CSIRO Science Image

at the process and the digital twin of a mine, that our sensors provide,” he said.

“If you look right through the supply chain, mining has traditionally been focused on the extraction side of production, but what’s happening now with the ability to collect raw data with our sensors, we are now able to monitor all stages of the supply chain.

“Resource extraction, manufacturing and production connect all the dots, right through to the storage and the distribution of the resource to the customer,” Mair added.

there is not as much research into adding value as there should be,” Prentice continued.

“From a resource-distributor point of view, we tend to try and get into the market however we can and don’t think about how we can make

a functioning metal that can be more readily used downstream.

“Australia has a lot of energy in a whole lot of different forms available, and needs to be open to different kinds of energy that are cost-effective and ideally sustainable.”

Manufacturers’ Monthly MARCH 2018 19

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Issues &INSIGHTS A vision for Australia’s manufacturing future Two Australian manufacturers of different backgrounds are collaborating to make spectacles from recycled plastic. Steven Impey reports.

A

S early as 2007, Western Sydney car badge manufacturer, Astor Industries, was warned that it should begin its move away from the automotive sector.

At the time, company CEO Neil Henderson explains that the impending closure of the Australian car manufacturing industry – still 10 years away – was too big to fathom, and the warnings went largely unnoticed.

As the years rolled by, and business began to wane, the company, based in the industrial district of Lakemba, was on the brink of closure.

Now, in addition to its continued service to the imported car market – following the closure of the Australian automotive assembly sector last October – Astor Industries is benefitting from an ingenious piece of business, which saw it collaborate with an unexpected ally.

“At the time, Holden had already come to us and said that we needed to start diversifying and that they would help us,” Henderson told Manufacturers’ Monthly.

“I don’t think the management, at the time, believed them; and then, all of a sudden, the work stopped.”

In April 2015, a deal arrived just in time to join Astor Industries with Dresden Optics, a spectacles designer based in both Sydney and Melbourne, which introduced the concept of making glasses from recycled plastics.

“We needed to think outside the square and to be more flexible,” Henderson continued. “We don’t necessarily have a world-class facility but what we do have is a worldclass process.

“Our specifications match anybody in the world and, the fact we were winning global quality excellence awards from General Motors, I was sure we would be good enough for the local market.”

At its factory, where badges were once designed and made for every manmonthly.com.au

Members of government, AMGC, and ISA highlighted the work being carried out by Astor and Dresden. car manufacturer based in Australia – including Holden, Mitsubishi, Ford, and Toyota – huge investment went into new technology during a transition to new sectors.

“I have always said that we are injection moulders and decorators, who make badges,” Henderson said.

“So, if you need an injection moulder to make something, the chances are we can make it – if you need something painted, the chances are we can do it.

“The process is still the same – it’s a generic process – but it is also about being flexible enough to take on something new,” he added.

Adopting change The automotive sector will stay core to the Astor Industries business, Henderson explains. However, there was no doubt that change was necessary to continue production at the plant.

The company invested more than $500,000 into new injection moulding machines robotics to help diversify its business, and has helped assist

As well as wearing it on your face, being able to track where the plastic has come from is also part of the marketing plan for Dresden.

Dresden Optics’ innovative design.

That was followed up by a further $200,000 in ancillary equipment, and the company has recently invested close to $100,000 into digital print technology for its arts team.

The transition is opening new markets, too. Following the move to Astor Industries, Dresden Optics is entering the value chain in India, as well as North and South America.

“We are seeing more companies taking on that collaborative model,” said Michael Sharpe, director for the Advanced Manufacturing Growth Centre.

“Dresden working with Astor Industries is a great story and shows how a traditional automotive manufacturer can work with a start-up,

to share that experience to come up with a world-beating product.

“It is fantastic to see Australia remains an innovative country and that our manufacturers are proving the system right, by being able to adapt and to change.”

As part of a federal government campaign, the manufacture of glasses using recycled plastic means the venture is aiding the effort to clean Australia’s beaches and waters.

“The environmental side of it is huge, too,” Sharpe continued. “We all know about plastics and how we need to be able to recycle that in an effective way.

“As well as wearing its on your face, being able to track where the plastic has come from is also part of Manufacturers’ Monthly MARCH 2018 21

Issues &INSIGHTS the marketing plan for Dresden.

“It really is our mantra at the Advanced Manufacturing Growth Centre around competing on value, not on cost. The value being extracted from Dresden and Astor Industries working together is enormous.”

2030 vision

Dresden’s galsses design uses recycled plastics.

22 MARCH 2018 Manufacturers’ Monthly

Senator Michaelia Cash, minister for Innovation and Jobs, visited the Astor Industries factory last month, where she gave her backing to a recently published study from Innovation and Science Australia (ISA), which outlines its strategic plan for future innovation.

The report, which is called Australia 2030: Prosperity through Innovation, calls for “ambitious national missions” to strengthen the country’s journey to becoming an innovation nation.

“This is an example of innovation at its absolute best,” Senator Cash said of the collaboration between Astor Industries and Dresden Optics.

“You have a company that was involved in the automotive manufacturing industry – and still is –

but had the capacity to do more.

“You also have Dresden Optics, a company that came up with an idea; and, between the two companies, they now work together to create glasses made out of recycled plastic.

“This is what innovation is all about – recognising an opportunity and putting the processes in place to realise that opportunity, grow your business and, ultimately, create more jobs.”

The ISA paper also calls for a feasibility study to address the threat coral bleaching poses to the Great Barrier Reef.

The Federal Government last month pledged $60 million towards preserving the reef, which is worth $6.4 billion to Australia’s national economy and supports 64,000 jobs.

“Looking towards 2030, innovation will be integral to the expansion and international competitiveness of Australia’s economy,” said Bill Ferris, ISA chairman.

“Given Australia’s ageing

manmonthly.com.au

Issues&INSIGHTS population, the real challenge is unlikely to be a shortage of jobs, but rather a shortage of workers appropriately skilled to fill those jobs.”

Australia can expect to become a leading innovation nation by 2030, according to Ferris, securing sustainable prosperity if its recommendations are addressed.

ISA also recommends that Australia seek to become the healthiest nation on Earth through the integration of genomics and precision medicine capabilities into the Australian health system.

Meeting customer demands Astor Industries shifts up to 20 tons of different materials annually, going further by using surplus trims and cuts to make other industrial components.

“The question for us is: what does the customer want?” said Dresden Optics CEO, Bruce Jeffreys, who is also the co-founder of the car-sharing service, GoGet.

“And the customer wants digital platforms and convenience, especially when it comes to eyewear.

“We think we can build a platform for our products which means that, if a customer loses a part [to their product], it can be replaced really easily and all comes down to convenience and practicality.”

And that has been the key to their new collaborative business model, Jeffreys explains, to keep the customer at the centre of their efforts.

“It is critical, and collaboration is really the only way because we don’t have the manufacturing base [in Australia] for people to go it alone,” he continued.

“It is easy to say the word ‘collaboration’ whereas, in practice, it is actually very hard to do. It means you have to be very open, transparent, and trusting.

“We are not becoming advanced manufacturers for the sake of it – we are doing it because that is what the customer expects.”

Senator Michaela Cash called the Astor and Dresden collaboration innovation at its ‘absolute best’.

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Manufacturers’ Monthly MARCH 2018 23

Manufacturing STRATEGIES The metal manufacturer giving back to its workforce Sheet metal manufacturer Kavanagh Industries has created a profit share scheme to support its employee’s futures. Managing director Aidan Kavanagh explains why its workforce’s welfare has played an important part in sustaining the business’ financial growth.

A

MANUFACTURER based in the suburb of Smithfield on the fringes of Sydney’s outer west, Kavanagh Industries prides itself on the wellbeing of its workforce – from their physical health and fitness, to individual personal growth.

The company’s managing director is Aidan Kavanagh, who has authored a pocket-sized guide full of worldly values, which his team are encouraged to bring to the daily

running of the business.

His philosophy isn’t driven solely by day-to-day deadlines, however.

The sheet metal manufacturer’s site covers three locations across the production line and all feature live scoreboards, which show the company’s productivity for all to see, in real-time.

On top of that, the business is geared towards supporting a sustainable workforce, which is

rewarded as part of an employee profit share scheme, which splits 50 per cent of the company’s revenue earnings above its quarterly targets.

To meet demand, Kavanagh insists on working with a small but reliable supply chain, for which the company has added value.

More recently, automation has become a big part of Kavanagh’s production process, and this hasn’t come at the expense of jobs.

On the contrary, the team around its machines is growing and has been aided by a mixture of personal pride they take in their workplace – from simple cleanliness to its overall efficiency – and a confidence in Kavanagh Industries’ financial security.

Trusted trade partner To sustain these values, Kavanagh explains why his company has sought a

Managing director Aidan Kavanagh (left) demonstrates the site’s technology with Matthew Kelly (centre) Andrew Hall (right) of St.George.

24 MARCH 2018 Manufacturers’ Monthly

manmonthly.com.au

ManufacturingSTRATEGIES We have never been knocked back on a loan or service, and it is really good for me to know that, when I have promised our team that we will invest in a new machine, I can ask for the financial backing to fund it without falling behind Automating Kavanagh Industries’ Sydney site has created more opportunity. trade partner it can trust.

“When we started to automate, it allowed us to migrate our existing staff into different parts of the business,” he said.

“Twenty-four years ago, we only had four people in the business, so the technology we have embraced has helped us grow and take on more work.

“Our staff work at a pace that is maintainable and I will always tell them that we aren’t looking for them to work faster – we want them to work smarter and to increase that productivity.”

For the past two decades, Kavanagh has placed that trust in St.George, an industry-focused bank, which speaks the language of its clients.

“We have got a really well-oiled machine in terms of our banking,” Kavanagh continued, “and that relationship with St.George has given us the confidence to expand.

“We have never been knocked back on a loan or service, and it is really good for me to know that, when I have promised our team that we will invest in a new machine, I can ask for the financial backing to fund it without falling behind.”

Kavanagh Industries has been in the business of manufacturing for nearly 50 years, but it has been during the last 25 years that the company has diversified beyond the production of world-class ductwork.

Off-site fabrication is the future for the business, Kavanagh says, and begins with employee retention and relevant training.

“If we were just a business that manmonthly.com.au

sold ductwork, we would never have the cheapest price in Sydney,” he said. “So, we want to provide the best solution for our trade partners.”

Industry challenges There are two challenges Kavanagh foresees if the company is to continue to grow.

The first is helping to sustain the development of the wider workforce to meet the evolution of faster and more complex factories like the one run by Kavanagh.

The other is ensuring the confidence and sustainability of the company’s supply chain, which means understanding industry trends including its weaknesses and unpredictability.

“It can often be a worry when you know you are owed money for a service or a company you work with falls over,” Kavanagh continued. “If we didn’t have a bank like St.George behind us, we would feel vulnerable.

“Because the bank understands the industry we work in, it has a realistic understanding of areas such as profit margins, where other financial backers may not appreciate that it is a tough climate out there.”

St.George is also in discussions with TAFE to help bridge the industry and its curriculum, further establishing itself as a bank that works for the manufacturer and one that listens to its needs.

“We want people trained specifically to what we are doing on the site and more, as we morph into offsite construction work,” Kavanagh added.

On its Sydney site, Kavanagh Industries incorporate other manufacturers such as KS Metal Fabrication, Sublime Air Conditioning, and Tinmen SA, to name a few.

Its site is one of the best examples of collaboration in Australian manufacturing, according to Matthew Kelly, head of manufacturing and wholesale at St.George.

“Where Aidan has been able to bring in all of this new innovation, it has taken the business to a whole new modern level,” Kelly said.

“Doing that, he has been able to grow the workforce, improve its turnover and profitability, and support his philosophy around the workplace sustainability and wellbeing of his staff.”

And its staff remain the backbone on the business. While new analytical technology is giving its site’s production direction and purpose, the onus doesn’t fall only on the maintenance of the factory’s machines – but also the wellbeing of its manual workers.

Kavanagh has placed his team in charge of the factory’s maintenance

and cleaning, including an in-house gym, and also invites in professional massage therapists to keep his employees’ fitness in check.

Likewise, Andrew Hall, senior relationship manager for St.George, has being adding value to Kavanagh’s philosophy, offering access to financial planners and home lending specialists for their employees, stemming from Kavanagh Industries’ long-term relationship with St.George.

“We want to educate our client’s workers, not only in manufacturing and the supply chain, but also in life – making sure that they are financially savvy as well as physically healthy,” Hall said.

“The information we gather from the manufacturer and the understanding we have of their business, builds a true partnership based on honesty and trust.

“Our understanding of the manufacturing space gives us insight into the business and its workforce, giving Kavanagh Industries the confidence that we are going to stand by them.”

Kavanagh Industries attributes its growth to workforce retention.

Manufacturers’ Monthly MARCH 2018 25

Sensors How Bluetooth connectivity enhances data control Vega Australia has adopted Bluetooth technology for all of its process instruments on the market. Managing director John Leadbetter explains how the move is giving power to a new generation of manufacturers.

B

LUETOOTH is the wireless technology that enables the exchange of data to fixed, mobile devices – and is in no way a new concept.

The first mobile phone with Bluetooth capability went to market at the turn of the millennium, and has been in existence since May 1998.

In 2006, it was adapted for homeware and fashion – including sunglasses, wristwatches, and picture frames – and had extended its reach to one billion devices worldwide.

With increased speed and quadrupled coverage range, its connection to the cloud 10 years later opened the door to the Internet of Things (IoT) and, by then, had acquired 30,000 member companies.

In the modern era, it has become commonplace to the tech generation, who won’t remember a day when personal computers weren’t so light, and didn’t fit inside your pocket.

Vega Australia, a manufacturer of process measurement technology has taking it further still – having seen an opportunity to simplify data tracking on the factory floor by implementing Bluetooth across its entire range of industrial transmitters.

“Traditionally, you would have had to use calibrators or specialised equipment to program instruments of this kind,” said John Leadbetter, Vega Australia’s managing director.

“Over the last few years, the industry has been looking for better ways of doing things and, now that there is common software being used across instrument manufacturers, the concept of using a wireless device has become increasingly popular.”

Until now, the roadblock, Leadbetter explains, has been universal. To bring Bluetooth to the market, it often means the target audience needs to purchase a prerequired device tailor made to an individual industry, which can be expensive.

26 MARCH 2018 Manufacturers’ Monthly

Vega Australia is using Bluetooth technology to enhance communication between industrial transmitters and the site operator.

Almost three years ago, Vega stepped in and started testing for opportunities in Bluetooth 4.

The major difference in its research is a simple one. Following testing, the company developed its own app capable of connecting everyday mobile devices to onsite data and activity in real-rime, via Bluetooth.

“The fact that everybody carries a smartphone nowadays – or has access to a tablet – you can now communicate with any device via Bluetooth communication using an app,” Leadbetter said.

“As more manufacturers come online with Bluetooth, you are going to find that your operators on a complex plant will be in a better position to protect the plant through preventative maintenance.

“These smart devices now allow you to access an onsite transmitter when there is an active problem and to act on it straight away rather than waiting for it to break before deciding what to do.”

When Vega introduced its idea to the market, it trialed its app for two of its process instruments already in the marketplace. Within a month, demand was so high the company gave all of its units Bluetooth capability.

“The next question is: what

does this bring to the industry?”

Leadbetter continued.

“Well, first of all, it brings simplicity because you no longer need to be out there searching for that specialised controller. Having it there in your pocket and readily available to the user, the app gives you that accessibility.

“Another area of benefit is around workplace health and safety because the technology enables workers to access onsite information without putting themselves or others at risk.

“With a range of up to 25m, wireless technology allows the operator to access information without physically attending dangerous locations, whether they may be too hot or too high.”

PIN-number protection also gives the user a basic level of security when accessing onsite data.

“It helps – although we are not going to sit here and say that it will eliminate or solve the threat of illegal activity that goes on,” Leadbetter said.

“However, it will help to prevent an opportunist security breach, meaning that, in the vast majority of cases, the app will keep your business well covered.”

The transition is not compulsory either. Though innovative, it has not

replaced any of Vega’s traditional, nonwireless sensor transmitters.

In light of the fact that automation is playing a bigger part in the manufacturing space, quick and easy access to data that can foretell an impending problem is at a much higher premium to the manufacturer.

“Bluetooth allows you to gain the information that, more than anything, gives you better reliability from your equipment,” Leadbetter said, “because you are able to maintain it to a higher standard by looking at information that is more readily available.

“In the time that we have had our Bluetooth-enabled units out in the marketplace, we have seen a monthon-month growth in the acceptability of Bluetooth communication in the industry.

“All of our transmitters now have Bluetooth – whether you are talking to a pressure transmitter, or a level transmitter, or a nuclear device that we sell – we have created one application that is able to log you into all devices.”

Vega hasn’t reinvented its product range. On the contrary, it has found a way to enhance any of its current programs and transmitters dating back to 2002, with a simpler communication platform.

The introduction of Bluetooth, Leadbetter says, will simply give operators and businesses of all generations a wider choice.

“Now that we have generations growing up with computers, they have become more acceptable from a young age and have become more part of their working practices when they are older,” he continued.

“All we are doing is taking away that myth and those barriers, to say that you don’t need to be a rocket scientist to know how Bluetooth works – all you need to be able to do is to interrogate or understand the information its offers in return.” manmonthly.com.au

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Safety @MM Putting eye safety under the spotlight Though workplace health and safety is the bedrock for employee welfare, it can be easy to forget that injury to the eye can happen in any circumstance. Enware’s Allan Lane explains why having an industry-graded eyewash system is so important.

S

AFETY shower and eyewash systems are compliant to industry standards, which cover two sections of eyewash care.

One of them is called the primary, those that operate handsfree and require 15 minutes of continuous flow.

The other is the supplemental device which doesn’t need to be handsfree and doesn’t rely on ebb and flow regulations, and is available in different-size bottles, from 5ml to a litre.

an increase in awareness around employee safety and duty of care, over the last 20 years.

“Whereas in the years before, people may have washed their eyes under a tap, the eyewash is actually much better for the eye because normal water can cause infection in some instances.

“Nowadays, people have become more aware of the market place and what their responsibility is to their employees and ensure that they are looked after well.”

always check a safety data sheet, to decide whether there is a high or low chance of harm, and how you judge what level of safety device you are going to need,” Lane explained.

“They are not necessarily industry specific but rather hazard specific, which is all covered in the data sheet.”

Health and safety regulations are enforced for the welfare of employees in all types of scenarios and the health of the eye is treated no differently, even when the injury is only slight to begin with.

“The first line of defence is always personal protection equipment such as

goggles or safety glasses, but the eyes can be damaged in lots of different ways, so you must have the primary systems very close to hand,” Lane said.

“That being the case, people still tend to think that it is chemical-based jobs that will cause the only damage, but a scratch in the eye can cause infection and even a speck of dust can cause so much aggravation it causes the eye to enflame.

“It is important to remember that anything that you can get in your eye can damage it, which means having the right treatment to hand is vital.”

It is important to remember that anything that you can get in your eye can damage it, which means having the right treatment to hand is vital

Allan Lane, Enware’s national sales manager for safety products, spoke to Manufacturers’ Monthly about the benefits close-tohand eyewash systems to workplace safety.

“If the hazard isn’t necessarily dangerous but more of an irritant, you may not need a device that is plumbed in to mains water, he said, “and, while we serve for both, supplemental systems are a growing area in the industry.”

Naturally, they are very popular in the mining industry, for example – especially where workers are placed in remote areas and dust particles are abundant.

“They are designed to be mobile but, having said that, there are ones that can also be fixed in laboratories or in schools, around dangerous or hazardous goods,” Lane continued.

“When it comes to the supplemental, there has been manmonthly.com.au

While heavy industries such as manufacturing have a greater risk of harm to the eye, the smaller eyewash devices are more diverse and can be used in any instance.

“I would use one of these products at home when I get chilli pepper in my eye, so it can be used anywhere whether in the house, at a mine site, or inside a factory,” Lane said.

“Obviously, larger companies especially those using dangerous chemicals will have plumbed-in systems where there is a greater likelihood of injury that requires a 15-minute continuous flow.

“However, when it comes to a scenario where that isn’t required, the supplemental bottles come in very handy.”

Knowing the risks at the workplace is the first step to understanding which level of care is needed; primary or supplemental.

“My advice to people when I chat to them about what they need is to

Enware’s eyewash products are better for the eyes because normal water can cause infection in some instances.

Manufacturers’ Monthly MARCH 2018 29

Factory AUTOMATION Smarter PLC to give the manufacturer a broader outlook When automating the factory floor, it can be hard to tell which areas of the production line need more attention. ifm has come up with a smart PLC to help with the transition.

ifm’s Smart PLC was inspired by the company’s Actuator and Sensor Interface.

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S the reality that is Industry 4.0 and the role of automation on the factory floor sets in, the manufacturer has a choice.

There is no avoiding the transition.

That is according to the top decision makers, those who are adopting, and creating, new innovation to increase the overall productivity of the industry.

However, amid the wide selection of technologies – whether they apply more efficient methods of manufacturing, or simply record raw data that tells the story of a production line – it can be a difficult to tell which is the correct route to take.

At the top end, sensor technology solves problems with a very precise measure – all varying in their specialties within a market made up of diverse sectors and can often be spread very thin.

The common denominator is that the increasing use of robotics means manufacturers are relying on data more than they ever have.

30 MARCH 2018 Manufacturers’ Monthly

What isn’t always available, however, is a device that can record a diverse range of technologies, and pick and choose the data that is best suited to the operator’s needs.

At ifm, specialists in mobile and industrial sensors, its engineers have been working on a project to bridge that gap, using a smart PLC. “There seems to be a gap in the markets where a business would usually have to draw together different protocols of a single network or an individual industry to retrieve data,” said Freddie Coertze, ifm’s product manager for Network and Controls.

“While we are all talking about Industry 4.0 and how the collection of data is valuable, it is certainly important to have something like our Smart PLC that can be used to collect all your resource data onto one central platform without overloading on unnecessary data.”

You can take it two ways. Where a business is using excess water to clean their vegetable produce, for

example, by supplying a Smart PLC they can measure accurately how many litres of water is going down the drain, without interfering with the exisiting PLC process.

“By keeping track of that and knowing that they have wasted ‘x’ amount of water, they can then implement something to change that and actually save water,” Coertze continued.

“On the other hand, processing can be tailored for a protocol site, where data that requires a certain PLC can be converted from that specific device to another.

“We actually see it as helping the industry. It isn’t going to take over the entire PLC market, but this acts as a small device from the Internet of Things (IoT), which compliments a maiden process that you may already have.”

Ifm is renowned for its position in the PLC market – its mobile PLC devices have been running for 30 years.

The new technology was born out of the company’s Actuator and Sensor Interface (ASI), the same gateway used for all of its other devices.

“All we have done is increase the processor and an extra Ethernet port, so that it can speak to various types of fieldbus,” Coertze said. “By doing that, it creates a three-way communication.

“Therefore, instead of buying an individual PLC for different protocols, you can purchase one that fits into any.”

Owning a device like this has opened ifm to a niche market, Coertze explains – not as a direct competitor to mainstream PLC devices, but rather something that can be added to an existing system “The thing you have to ask

yourself is whether some of the data you create is necessary,” Coertze continued, “because you will overload your database.

“You want to access information but you also need to know what you are looking for first and, ultimately, how that data is applicable to your system.”

For example, sensors for vibration, temperature, and flow all create predictive maintenance for a factory or plant, which can generate early detection of a fault before something fails, with the use of smart data.

“You have to identify the value of your machinery and know its purpose, its potential and also its limitations,” Coertze said.

“By identifying the worst case scenario, it means you don’t have to monitor your entire plant but rather focus a couple of sensors in one area that will improve the business.”

The device is perfect for small to medium-sized machine manufacturers, according to Coertze, who recognises that some businesses which have yet to fully adopt Industry 4.0 require a mechanism that demonstrates the value of new technology, without automating their whole operation.

“Industry 4.0 is coming whether you want it or not,” he said. “If we talked about this even as recent as four years ago, some people would be saying that this is definitely not going to happen.

“Slowly over time, we are progressing towards automation and we want to change that mindset and align ourselves with the changing industry.

“We have got a unique solution that doesn’t offer one part, but rather than several parts that can do everything you want, however your factory is integrated.” manmonthly.com.au

Global AUTOMATION Connectivity the key to plant management Manufacturers’ Monthly speaks to John Thomson, managing director, Global Automation, to get his thoughts on data management on the factory floor.

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N manufacturing, sometimes the people on the shop floor can hold vital information that can be difficult to capture. With the advent of IIoT ready technologies, companies are increasingly reaching the stage where they have installed a wide variety of sensors and are sorting through the best ways to capture this data. Unfortunately, the majority of these companies are still unsure of what they will ultimately do with their data and how they will realise any value from it.

Global Automation specialises in simplifying complex industrial processes through automation and communication technologies.

“At the moment the focus for my company over the next five years is for further growth, more people, innovative products and new technologies. It’s a very exciting

When investing in new software or hardware, it is important to consider the ROI involved.

manmonthly.com.au

time because I see good potential for the markets that we serve,” said John Thomson, managing director of Global Automation.

Thomson said that it’s okay to put all this technology into the factory floor for example with Human Machine Interfaces (HMI). “But unless you want to invest lots of money on significant management software’s for example like a Manufacturing Execution System (MES) system or SCADA software, to get the data back and actually get something meaningful from it, it’s a significant investment because the data needs to be formatted, interpreted and then presented.”

A Swedish company that Global Automation represents in Australia, Beijer Electronics, is promoting its new philosophy of control, connect and then present through their new

IIoT enabled product range.

“Beijer Electronics is a leading innovator in the HMI market and they have manufactured HMI products for big companies like Mitsubishi Electric. With its new range of HMI panel’s the data at the machine/plant floor can be stored in its internal SQL database for data logged process data, recipes, audit trails and alarming.

With its advanced reporting functionality Excel templates with embedded SQL queries can be easily downloaded as part of the HMI application. This translates to complete finished reports at the factory floor which are easily accessible via USB stick, CF memory card, email and FTP to production management teams.

Nobody has to do any more work to them,” he said. “Using the old

way of getting raw data into your spreadsheet, somebody has to go in, interpret the data and create a report themselves.”

What’s next for Beijer, getting all this data to the cloud and then present. Present via dashboards and then presented on your own device (BYOD) such as smart phones, tablets and PC’s with HTML5 webbased applications. This the Beijer IIoT suite.

“The IIoT connectivity for the Beijer product will be engineered through a rapid engineering tool called WARP Engineering Studio, its where it all comes together in an intuitive graphical presentation and configuration tool which is simple and quick to use,” said Thomson.

“We think this is not just a revolution but also an evolution.

Our marketing pitch in 2018 for the WARP software is the “Automation (R)evolution”.

The road to service offering Global Automation is a product supplier, but Thomson says they will also be providing services to get to the cloud.

“What I’d like to do as a company is to sort through all the jargon like ‘cloud’ and ‘IIoT’ and give people real solutions and provide tangible solutions to it.”

Education through technology Thomson thinks that the first step for manufacturers to save money and improve productivity is to understand and be educated on areas where they are not efficient and look for the right solutions in the right places.

“It is not the large manufacturers but small to medium companies that can have got all these inefficiencies on their floor and can’t identify them.

Hence, the first step is to identify what they need, educate them about what is out there and understand the best technology that suits their business. Only then can they see value in it and then they’ll go looking for the solution,” said Thomson.

Manufacturers’ Monthly MARCH 2018 31

Materials HANDLING Elevating the manufacture and distribution of Australia-made With the production growth and increasingly supply of manufactured goods globally, managing director Vince Di Costanzo tells Manufacturers’ Monthly how MHE-Demag Australia is giving the industry a lift.

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fter 15 months of consecutive growth to finish 2017 on a positive note, Australia’s manufacturing industry is showing signs of recovery in exports and delivery.

To be more specific, production, inventories and supplier deliveries are all expanding at an accelerated rate, according to the Australian Performance of Manufacturing Index (PMI).

This is despite a misconceived belief that the industry is in decline, amid the offshoring of sectors including automotive assembly and an acceleration towards the age of automation and robotics.

While it is changing focus one thing remains certain: the distribution of manufactured goods – both import and export – is growing exponentially and therefore requires a reliable transport network to keep it ticking over.

Ideally positioned as the Pacific Rim’s materials handling specialist, MHE-Demag’s industry knowledge is helping the drive for a more global supply chain.

Its latest technology, including the KBK Crane Construction Kit, is adding value to the manufacturer’s production line, increasing efficiency of creation and sure-fast distribution.

“KBK is our light-weight construction kit and is very adaptable to applications within the manufacturing industry,” said Vince Di Costanzo, MHE-Demag Australia’s managing director.

“The beauty is that it gives room to manipulate the crane’s movements with less manual effort, improving cycle times while ensuring the safety of the machine operator.”

Introducing new markets in Asia to its own supply chain, the company – formerly known as Demag Cranes and

32 MARCH 2018 Manufacturers’ Monthly

Components – first sought the services of a distributor already established in Asia.

Jebsen and Jessen (J&J), based in Singapore and Malaysia, has a footprint in Southeast Asia over many generations, and it was in the early 1970s when Demag came calling.

“Although pockets of our manufacturing industry in Australia are moving offshore, we are still consuming those goods and that consumption is only expected to increase,” Di Costanzo continued.

“In terms of manufacturing production, that is in decline.

However, in terms of logistics, warehousing and transportation of manufactured goods – whether for import or export – that is expected to increase.”

Expanding the business has been no easy feat, however. The company turns 200 years old next year. For almost 65 years, it has been based in Australia.

In 2015, a smart move saw Demag Cranes and Components become MHE-Demag Australia allowing J&J to own 50 per cent – joining their crane technology.

From this marriage of continents, MHE-Demag was brought to Australia.

“It means, in terms of our customers we served before, we can do more than simply focus on their factory floor,” Di Costanzo explained.

“With our current resources we can ever more focus on analysing requirements and to customise solutions. This is especially interesting for lighter lifting applications where a light crane system, may not come to mind straight away.”

This assistance can be provided by innovative solutions, tailored to ever more demanding challenges in Australian workshops. The key here is MHE-Demag’s KBK system. It is

MHE-Demag Australia’s KBK Crane Construction Kit is improving efficiency in the manufacturing sector. no coincidence that the original light crane solution continues to be the preferred choice for many.

“In the glass industry, for example, this capability of providing solutions that allow precise and ergonomic material handling is essential,” Di Costanzo said, “for the production process and for despatching.”

“The notable difference for the customer is that MHE-Demag can help businesses to, not only handle materials with cranes and lifting equipment, but also by conceptualise, design and implement solutions that are as unique as one’s fingerprint – cookie cutter solutions are in fact rarely solutions that get the best result for manufacturers.

“One item that manufacturers need to look at is the total investment of their production line and how materials go from A to B. We urge to think beyond a simple dollar value for set up and every manufacturer to ask themselves how they can get the best value out of the space they have – quite often this can be achieved by emptying the factory floor and by utilising a

specific light crane application.”

The KBK Construction Kit is designed to fit to lightweight structures, which are typically used around diversified equipment.

It is much easier to integrate than a large, overhead-travelling crane, and can yield an unexpected return in terms of efficiency and smoothness.

MHE-Demag’s cranes and loading bay solutions are supported by German safety standards, which Di Costanzo says are an industry leader worldwide.

“Having that German connection means we have always been ahead of the safety standards required,” he continued, “and that is the case for all of our products.

“Australia, typically, looks to Europe for the next revision of the standards. At MHE-Demag, our own engineering manager, Peter Woodward, heads the Crane Standards Committee here in Australia, which allows us to be the pace-setter when it comes to safety, whether that is in manufacturing or logistics.” manmonthly.com.au

Events @MM Breathing life into advanced manufacturing This year’s Air Conditioning, Refrigeration Building Services (ARBS) exhibition in Sydney will showcase new and emerging technology. Manufacturers’ Monthly speaks with exhibitor Seeley International about the industry gathering’s value.

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mong hundreds of exhibitors of new cooling technology, Seeley International will be championing almost half a century of market leadership at this year’s Air Conditioning, Refrigeration Building Services (ARBS) exhibition.

As Australia largest airconditioning manufacturer, founder and executive chairman Frank Seeley recalls the company’s early days when, in 1972, a small team built the first unit of its kind made from plastic – and hasn’t looked back since.

Whereas air-conditioners had always been made from metal, all-plastic cabinets put an end to corrosion and quickly transformed the rooftop cooler industry from 12,000 units per year, to more than 70,000.

The company is now leading the global market in these products, exporting to well over 100 countries and supplying some of the hottest places on the planet with high performance cooling units that combine advanced manufacturing with innovative design.

“I have a very strong conviction that there is a great future for Australian manufacturing, providing we do two things – innovate like there’s no tomorrow, and automate the same way,” said Seeley.

“As an Australian manufacturer, we know that we can always improve what we do. Innovation isn’t a destination, but rather a journey, and one that we have been on for 45 years.

“We want to make our products even more energy efficient and to contribute to the whole industry, by forcing it to lift its game.”

ARBS, Australia’s only international air conditioning, refrigeration and building services trade exhibition, is set to showcase hundreds of new products and technologies with a focus on manmonthly.com.au

ARBS is Australia’s only international air conditioning, refrigeration and building services trade exhibition.

innovative responses to existing and emerging trends.

Back in Sydney for the first time since 2010, the new International Convention Centre (ICC) will host ARBS from May 8-10 and will host more than 350 exhibitors and in excess of 9,000 visitors. The event connects industry professionals, consultants, engineers, contractors and technicians with global product and solution providers.

Over three days, guests can see the latest products and services, talk to manufacturers and distributors and explore how industry leaders design, control and innovate to sustainably and efficiently transform the built environment.

“Since 1998, ARBS has provided a unique forum for the entire industry to connect and develop mutually beneficial business relationships, to source and discover the latest products, systems and service evolutions and to share knowledge of emerging technologies, methodologies and best practice,”

said Sue Falcke, ARBS’ organiser.

Including Seeley, major national, international and multi-national exhibitors will all be on display, seeking to connect with other industry leaders and peers.

Seeley is making further inroads overseas, bringing new technology in air conditioning to the wider industry.

Among the company’s flagship technology, Seeley will be demonstrating its Climate Wizard – an air conditioner that uses water as a refrigerant, doesn’t increase humidity and doesn’t require a compressor, which has been proven to save up to 90 per cent in energy usage.

“If you cannot demonstrate the benefits of the product, you are not necessarily going to convince the whole industry of its true value,” Seeley continued.

“People and businesses don’t tend to embrace something new at the first try and, with the Climate Wizard, we are now breaking into new markets.”

In addition to Australia, the product has established a growing

foothold in more than a dozen countries overseas including Indonesia and USA. It is the brainchild of Seeley’s research and development facility, which is called Imagineering and is conducting over-the-horizon R&D. It is based in Lonsdale, South Australia, where 30 engineers are trying and testing new concepts to drive technology further into the future.

“Researching new ideas is part of our DNA,” said Frank’s son, Jon Seeley, who is the group managing director.

“Our main focus is not on incremental improvements.

“We are looking for disruptive new solutions, utilizing technologies and concepts from other industries and applying them in new and innovative ways to challenge and improve the quality and performance of our own products.

“Having a presence on the floor at events like ARBS is a great opportunity to engage with the wider industry.”

Manufacturers’ Monthly MARCH 2018 33

NMW 2018 PREVIEW April 2018 Issue Manufacturers’ Monthly is a proud media partner of National Manufacturing Week. Our special edition is distributed ahead of the event, to give attendees a chance to plan their trip, and bonus editions are available at the show. In April 2018 we speak with companies taking part in National Manufacturing Week, to support their participation in this important event. In every edition of Manufacturers’ Monthly, we’re proud to work with our commercial partners on content that helps connect you with your future customers.

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Supply CHAIN EXCELLENCE Facilitating the future of supply chain and logistics MEGATRANS2018 Show director Simon Coburn talks about the inaugural supply chain trade expo this May and what visitors can look forward to.

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HE movement of goods from A to B may seem a simple process on paper for the average consumer. But it has taken years of development, progress and innovation to reach this level of streamlining, and that process is only becoming faster and more efficient.

For the industrial supply chain, this can be an intricate process, involving a variety of stakeholders with countless variables to consider along the way when moving goods from one place to another. Road, rail, air and sea transport, warehousing, packaging services – there are many different facets involved in the process and adding value to every step of the supply chain.

Giving the freight and logistics providers, and their customers – manufacturers, wholesalers and retailers – the opportunity to see the businesses, technology and innovation leading the cutting edge of progress within the Australian and international supply chain firsthand is one way to help the industry grow and reach a new level of supply chain safety, connectivity and efficiency.

The future of supply chain and logistics MEGATRANS2018, a new multimodal supply chain trade expo, aims to provide this unique platform and bring industry together under one roof. The event, delivered in partnership with the Victorian Government, is designed to bring together those who plan, manmonthly.com.au

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.

In the grand scheme of things, this supply chain covers all facets of Australia’s industrial transport and logistics sectors. These specific industries comprise the main features of the trade show, which makes its debut 10 to 12 May this year at the Melbourne Convention and Exhibition Centre, based in the heart of the world’s most liveable city – Melbourne.

But just who will be attending the trade expo? Simon Coburn, MEGATRANS2018 show director told Manufacturers’ Monthly about who will be making their way to Melbourne for the major industry event.

“MEGATRANS2018 is poised to be the biggest supply chain and logistics trade event in Australia and the Southern Hemisphere. By spreading the expo across all 30,000 square metres of exhibition space at the Melbourne Convention and Exhibition Centre, we’re trying to include every business, service provider and leader within the supply chain,” he said.

“From warehousing to road transport, infrastructure, telematics businesses, manufacturing companies and packaging specialists – the show is including everything, and everyone involved in the movement of goods from one place to another, with significant focus on the technology driving this process.”

The show is designed around the needs of the logistics firms, freight companies and various technology innovators and service providers involved in the supply chain, those coming to the event will be the retailers, manufacturers and third and fourth-party logistics providers (3PLs and 4PLs) utilising the supply chain and looking for new ways to increase efficiency and security in the movement of goods.

“Those who need to move goods by sea, air, rail, road, are those who will benefit the most from hearing about the latest in telematics, data optimisation, freight forwarding, Industry 4.0 and future developments in the industry,” said Coburn.

Bringing industry together Many major industry conferences and events are being held in conjunction with the show and are aimed at drawing even more national and international leaders from across different facets of the supply chain.

MEGATRANS2018 brings together a variety of international and domestic conferences, including the Australian Logistics Council’s (ALC) inaugural Supply Chain Technology Summit 2018, Australian Road Transport Suppliers Association (ARTSA) Global Leaders’ Summit, the Logistics & Materials Handling Mercury Awards, a ministerial breakfast delivered in partnership with the Victorian Government, Transport Certification Australia’s (TCA) Technology Hub and the 2018 Global Shippers Forum Conference (GSF2018).

The ALC Supply Chain Technology Summit, for instance, will gather key industry leaders and businesses and will take place on 10 May, onsite and in partnership with MEGATRANS2018.

“Technology is a major component of the logistics supply chain and will play a dominant role in the exhibitions at MEGATRANS2018,” said Michael Kilgariff, managing director at ALC.

“The Supply Chain Technology Summit 2018 will align well with the technology theme and ensure that those who attend the integrated event can maximise their time and investment.

“The dedicated Supply Chain Technology Summit will focus on the policy priorities articulated by ALC in Freight Doesn’t Vote – our submission to the Inquiry into National Freight and Supply Chain Priorities. This includes collecting greater data on freight movements, adapting to automated technologies and global labelling standards.”

Peter Hart, chairman at ARTSA, says MEGATRANS2018, and the industry players it will draw, is a good fit for the association’s annual summit.

“We see this event as an opportunity to bring together international thought leaders in a world-class conference and exhibition hosted in Melbourne,” Hart said.

ARTSA will be holding its 2018 Leaders’ Summit as part of the scheduled events, featuring industry authorities from around the globe debating the business models, systems and equipment that will continue to deliver for the customer.”

The GSF2018 likewise, will host its conference and AGM in Australia for the first time.

The Australian Peak Shippers Association (APSA), the peak body for Australia’s containerised exporters, will host the GSF2018 in coordination with the International Cargo Handling Coordination Association (ICHCA), the Freight & Trade Alliance and MEGATRANS2018.

GSF2018 takes place alongside MEGATRANS2018 and a range of other events either running concurrently or book-ending the show. As a result, Coburn expects Melbourne will be the place to be for leaders and stakeholders in the global and national supply-chain sectors come May. Manufacturers’ Monthly MARCH 2018 35

PROMOTIONAL FEATURE

Robots & Automation

Rolling forward Peter McKinnon, managing director of Rotacaster tells Manufacturers’ Monthly about robot productivity and movement on the factory floor.

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CCORDING to analyst firm McKinsey, “Cobots”, or collaborative robots, are making inroads into work previously considered too difficult to automate.

But as cobots get better at performing tasks such as material handling or packaging, their designers are having to consider the effects on the machines’ improved ability, when they interact with humans. This includes the physical mobility of the machines.

Rotacaster is an Australian company managed by Peter McKinnon with a focus on innovative product design. The company produced the Rotacaster, a patented multi-directional wheel that is the alternative to the swivel caster. The design of the wheel is sturdy, robust and adaptable to a array of applications and, according to McKinnon, overcomes many of the limitations associated with the traditional swivel caster wheel.

“There’s a different range of wheels that vary in size and functionality, but fundamentally, they are what’s known as an Omni wheel and the design has been around for a while. The initial application for these types of wheels was in conveyors and conveyor transfer tables, to allow product to not only move in the forward and reverse direction, but to move laterally, across the wheel at the same time,” said McKinnon.

Later on, robotics enthusiasts worked out that by putting the wheels at an angle to one another, it was possible to drive a product in any direction from a standing position, which gave the wheel a 360-degree manoeuvrability.

“The concept behind our wheels revolve around the fact that we build the wheel on an almost Monolithic spider’s web-type structure. It is fully moulded, and we don’t use steel insert pins, so the wheel tends to have an enormous manmonthly.com.au

amount of strength and robustness that is difficult to achieve with other methods,” McKinnon explained.

He used a shopping trolley to demonstrate the difference between a traditional swivel caster wheel and an Omni wheel. “With the shopping trolley, you have to arrest the momentum of the cart and recreate it in a new direction, rather than just turn it and it naturally turns but with an Omni wheel, when you actually turn the cart, you are turning the wheel as well.”

The rise of Automatic Guided Vehicles (AGVs) and cobots McKinnon explained that cobots that work alongside people are being used more these days. He said that they are not larger or move faster than people. However, the next step, he said, is making them move like people on a horizontal plane. “This is because 90 per cent of what we do is on a horizontal plane.”

He described the next evolution of movement of robots on the factory floor to the evolution of the droids on Star Wars. “So, R2D2,

he goes forward, then he turns 90 degrees, and changes direction – movements that are not that natural and fluid movement like a person.

And, then look at the new BB-8 which can move in any direction from a standing start and it’s like we can pirouette across the floor and change direction without a problem.

This is the same with the Omni wheel compared to the traditional swivel ones,” said McKinnon.

Robots fall into two categories – conventional robots or cobots. The current generation of robots are mobile, but they are generally limited to either informational processing or very little physical activities like pick and packing of goods. Then the other kind of robots are highly dexterous and capable robots, but generally they are stationary.

“These two kinds of robot genres are starting to merge, to allow multi-tasking but mobility that is comfortable for humans. Fluidity of that movement is the key, and I think that will become important in the next phase of development,” said McKinnon.

Robotics enthusiasts found that if the wheels at an angle to one another, it was possible to drive a product in any direction from a standing position, which gave the wheel a 360-degree manoeuvrability.

He explained that new technologies will allow cobots the ability to move around among humans with similar fluidity of movement and precision that a human has.

“So, a lot of robot arms are traditionally fixed to a bench, floor or something like that. Now, you see people experimenting with them on mobile bases where you have a full, fluid 360-degree capability and can actually apply pressure to that, or apply force, or extend its holding capability with a three-wheeled Omni wheeled platform, irrespective of which direction the arm has got to push in,” said McKinnon.

It all starts at the wheels The construction gets down the tolerance of the wheel and the manner in which it is manufactured.

“We use very fine tolerances, so we don’t have a lot of play on the rollers of the wheels. Through this method, there is more consistency in the production process. I would say we are probably one of the only Omni wheels in the world that uses a full polymer construction,” said McKinnon.

The wheels are durable and impact resistant because a monolithic wheel frame that is able to absorb and dissipate impacts where unlike the traditional steel and plastic rollers burst apart, is used. In addition, the Rotacaster uses a series of moulding and overmoulding processes to ensure the rollers stay in place.

“The competitive difference is that with our manufacturing technique, you’ve either got to wear the wheel out or destroy it. There’s no way it will come off and get lost.

This is in comparison to other types of Omni rollers that can pop out of their grooves.

“We service the global market, including all of Australia and have sent 80 per cent of our wheels last year overseas,” said McKinnon.

Manufacturers’ Monthly MARCH 2018 37

Energy MANAGEMENT Getting past Australia’s energy puzzle Manufacturers’ Monthly speaks to Christopher Dean, CEO of Choice Energy on the issues manufacturers faced after they get billed.

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HERE are the continued concerns over the energy shortfall despite the many measures put in place by federal and state governments. With energy prices soaring and industries damaged by unstable access to power, how can Australia build a reliable grid while reducing emissions?

Moving forward, the Australian Institute of Company Directors regards energy policy and tax reform as the biggest issues of 2018.

According to Choice Energy CEO, Christopher Dean, the price of wholesale electricity has trebled in the past two years largely due to the closure of two coal power stations, responsible for 10 per cent of Australian energy generation. With further planned closures of coal power stations, he said respite will not come in 2018 and possibly not even 2019.

“We have been busy helping over 5,500 businesses regain control of their power costs.

Some manufacturing businesses experienced an 80 per cent increase to their electricity bill before turning to Choice Energy for help.

Frustratingly that increase comes straight off their bottom line at a time when the industry is under real pressure from international competition.,” said Dean.

As Aussie businesses are often scrambling to survive, some large energy retailers are reporting record profits and stock price growth. Dean said that if manufacturers don’t tackle the issue, they will be in for trouble.

“Energy, like tax, is complex but should not be ignored. It really pays to engage a professional who can customise and execute on a strategy that is unique for you. You don’t have to start big, simply understanding how you use your power can be a starting point,” he said.

Without any increase to their budget or upfront investment, manufacturers can access data which can be analysed to discover 38 MARCH 2018 Manufacturers’ Monthly

opportunities to deliver savings on demand charges, metering costs and even allow them to reduce their consumption. Currently, Choice Energy have secured more than $500,000 a month in federal funding for Australian businesses to help cost their energy costs.

“We see ourselves as one of the most energy consultancies or brokers that can only help you to pay less or use less power. We are committed to help manufactures to both pay less and use less.

“From my background as a CEO at a large Commercial Solar company, I recognised that solar is a great solution, but the average hours of generation are only four to five hours per day. On its own, solar is a solution for 20 per cent of the day. Through this, we realised customers needed a more complete service,” said Dean.

Choice Energy provides procurement services to help manufacturers pay less for their power by allowing 10 or more retailers to bid for their business in a blind auction.

Dean said that Choice Energy’s metering solutions allow them to monitor customer usage and demand with shared 24-hour web access. This allows them to validate all of the bills that their customers receive from their electricity retailer.

“It’s amazing how many of those bills are inaccurate and need challenging, but thankfully the data gives us the evidence needed to present a clear case for the bill to be changed. Choice Energy’s Power Factor Correction, LED and Solar solutions are tailored to match the specific energy load of each customer,” said Dean.

He said that the biggest issue with the solar industry is how transactional it is. There is little repeat business or annuity revenue for the 500 odd solar companies in the market, and according to him, they can be difficult to reach in times of need or query.

“Because we offer our solar customers energy procurement and metering, we are incentivised to continue to work with them and provide a quality outcome,” said Dean.

According to him, 70 per cent of solar companies that have registered an ABN since 2007 have gone into administration. He said that besides a pricing race to the bottom, there is a lack of clear policy and backflips on funding and feed-in tariffs has seen dire results for the competition.

“Choice Energy are protected from these booms and busts due to

our annuity revenue streams. Should the government pull all funding, our doors stay open and we are still able to service our 5,500 customers.

This robust business model gives our clients the extra piece of mind they often seek before transitioning to solar,” said Dean.

“Since manufacturers now need a professional energy consultancy now more than ever, our company has grown as market demand for our services has soared. This was reflected by the Financial Review publication who has recognised Choice Energy as the 12th fastest growing business in Australia.”

Christopher Dean, CEO, Choice Energy

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What’sNew

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Shark Line taps given extra bite DORMER Pramet has expanded its Shark Line program of material specific taps with two new designs.

With its unique combination of substrate, coatings and design features, the popular application-based range offers high levels of process security and performance across a range of engineering materials.

Each tap features a colour ring on the tool shank denoting material suitability, promoting quick and easy tool selection.

The latest additions are to its yellow ring range for structural, carbon and low alloy steels (E412) and its blue ring range for stainless steels (E414).

Both new taps feature a spiral flute angle of 48°. This facilitates smooth and fast chip evacuation, making them suited to threading deep blind holes.

A special three radii profile with constant rake angle all along the flute length leads to better control of cutting properties and prevents the nest formation of chips. This, in turn, promotes increased productivity by minimising machine downtime.

Chip evacuation is further facilitated by a back taper, which reduces chipping on the last threads of the taps. This feature also reduces torque when the tap reverses, resulting in longer tool life.

Other material types covered by the Shark range include red ring for alloy steels, green ring for aluminium and white ring for cast iron. All are manufactured from a unique powder metallurgy tool steel, different to any other HSS-E-PM. This provides an unbeatable combination of toughness and edge strength.

Company: Dormer Pramet Phone: 0870 850 4466 Web: www.dormerpramet.com

Limitless automation with PLCnext Control

SMC’s finger valves continue to save energy and offer reliability

PHOENIX Contact is responding to the challenges of the world of the Industrial Internet of Things (IIoT) and simplifying existing controller solutions.

As an enhancement to classical IEC 61131-compliant PLC programming, PLCnext Technology makes it possible to program controllers using highlevel language, thus ensuring PLC-typical real-time performance and data consistency for high-level languages and model-based code as well.

Multiple developers can work independently in different programming languages and with the development tools they prefer. The result is faster application development. Open source software and apps can also be incorporated into the system in a flexible way.

PLCnext Control is Phoenix Contact’s first open control platform product based on PLCnext Technology. The controller combines the robustness and security of a classic PLC with the openness and flexibility of the world of smart devices.

The new controller is adaptable and open to the application of future technologies. The expanded connectivity provided by open interfaces and a direct cloud connection give users more freedom of choice.

In addition to its open design, PLCnext Control’s high-performance CPU and large mass storage in a small housing make it a convincing alternative. This solution allows you to rethink automation as limits disappear and new possibilities for industrial automation come into view.

WHILE many plants look to significant upgrades and welcome more flexible solutions, manually operated valves still provide benefits and are still relevant for certain applications. These hard working, robust valves offer control, durability and cost savings.

With a shift to smart manufacturing, SMC is providing solutions including its VHK series of finger valves, which allows for ease of operation, visibility and reliability.

The valve direction clearly indicates whether the valve is open or closed (shut to open is counter-clockwise) and the classification of the knob by colour helps in distinguishing between two-port valves (grey) and three-port valves (blue).

In addition, in SMC’s quest for energy savings, the VHK series forms part of its energy saving line-up thanks to its sturdy construction to best ensure no leaks.

These robust valves offer a poppet valve construction and can operate at a maximum pressure of 1.0MPa and an operating vacuum pressure of -100kPa. The series begins with a minimum tube diameter of 4mm and accommodates air at temperatures of between 0 to 60°C. In addition to the standard VHK two-port and three-port finger valve options, SMC also offers a flame-resistant version for harsher environments.

Company: SMC Corporation Phone: 1800 763 862 Web: www.smcworld.com

Company: Phoenix Contact Phone: 02 8844 5415 Web: www.phoenixcontact.com

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Manufacturers’ Monthly MARCH 2018 39

What’sNew SIL certified Vortex flow meters to enhance plant safety and reliability FACILITIES with Safety Instrumented Systems (SIS) can now take advantage of the new SIL 2/3 functional safety certification of Emerson’s Rosemount 8800 Vortex flow meters, which can help mitigate risk, enhance plant safety and protect personnel.

The non-clog Rosemount 8800 Vortex portfolio offers safety and reliability features such as online removable sensors to reduce process downtime and a critical process valve for aggressive applications, which increases personnel safety by preventing exposure to hazardous fluids. A variety of configurations are available to suit a variety of requirements, including flanged, wafer, reducer, dual, and quad meter body styles, supporting installations up to 12-inch (300 mm) line sizes.

Per an accredited third-party assessment, a single Rosemount 8800 Vortex meter may be used up to SIL 2. The Dual Vortex meter is capable of up to SIL 3 and offers a simple drop-in solution to reduce installation costs. This configuration includes a single or dual shedder bars, dual sensing elements, and dual transmitters for redundancy and 1oo2 voting to reduce unexpected shutdowns.

Exclusive to Emerson, the Rosemount 8800 Quad Vortex uses a dual shedder bar, quadruple sensor, and quadruple transmitter configuration to meet hardware fault tolerances and eliminate the need for multiple flow meters. This option offers the highest level of reliability to guard against spurious trips using 2oo3 voting and includes a fourth transmitter for process control Company: Emerson Phone: +852 2827 1323 Web: www.emersonprocess.com.au

Future-ready with super-premium efficiency IE4 motors KAESER Compressors has launched its latest generation of ESD series rotary screw compressors. Equipped as standard with super-premium efficiency IE4 motors, end users can now enjoy lower energy consumption for energy cost savings.

The latest generation of ESD series rotary screw compressors from Kaeser consume up to eight per cent less energy than previous models, yet deliver 6.5 percent higher flow rates, according to Kaeser.

Numerous optimisation measures, such as further-improved Sigma Profile screw compressor blocks and the use of IE4 motors, have improved the overall energy profile.

The performance of the ESD series compressors is due in large to Kaeser’s refined technical concept. At the heart of every ESD system lies a flow-optimised rotary screw compressor block with energy-saving Sigma Profile rotors that allows the ESD series compressors to set the new standard when it comes to specific power.

The use of IE4 super premium efficiency motors (that comply with, and exceed prevailing Australian GEMS regulations for three-phase electric motors) underlines Kaeser’s continued commitment to providing maximum efficiency, not only to save energy, but also to assure compressor competitiveness well into the future.

IE4 motors are the technology of tomorrow, as current regulations introduced in January 2015 simply require the use of IE3 class motors.

Also, the Electronic Thermal Management system delivers additional energy advantages, as do the environmentally friendly fluid filter and integrated Sigma Control 2 controller.

Electronic Thermal Management consistently controls the oil temperature within a constant, safe differential relative to the dew point (condensation temperature), which also helps avoid unnecessarily high screw compressor block discharge temperatures; thereby contributing to higher overall energy savings and extended service life.

Company: Kaeser Compressors Phone: +61 3 9791 5999 Web: www.kaeser.com.au 40 MARCH 2018 Manufacturers’ Monthly

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Getting a CRC makeover CRC Industries has launched a fresh new can design across its family of best-selling aerosol products.

The packaging updates represent the next step in the evolution of CRC Industries, an Australian manufacturer of specialty chemicals used in general maintenance and repair.

The new look cans offered a consistency of design across diverse product categories, making them instantly identifiable as being part of the CRC family.

Consumers can look forward to the same product, delivered in a fresh new can design which is a reflection of CRC’s sense of purpose and commitment to innovation and reinvention.

The new design incorporates the same iconic CRC logo and colours that have been associated with the brand’s core identity for more than 50 years with clean contemporary design elements allowing greater visual impact and ease of identification.

The new packaging maintains a clear differentiation between industry categories, with red representing the industrial and auto markets and blue being the colour of choice for the electrical sector.

An information tab has also been included at the base of each can to clearly explain the product’s purpose.

The new packaging of some of the best-loved CRC products brings a stylish and contemporary look that CRC will be hoping to connect with their loyal customers as well as attracting a new generation of users.

CRC Industries (Australia) (02) 96342 088 http://www.crcindustries.com.au

Inspection industry disruptors attracting interest from Australia and New Zealand INVERT Robotics provides non-destructive inspection services using state-of-the-art mobile climbing robots, which enable precise and accurate remote inspection of non-ferromagnetic surfaces such as stainless steel, carbon fibre, aluminium and glass.

The company’s patented robots are installed with highdefinition cameras and sensor technology to allow for equipment to be assessed for maintenance and for preventative analysis on a remote basis. Inspectors are fed real-time video during the inspection that allows for immediate and highly accurate analysis.

The device is already being used by the major Australian and New Zealand dairy companies and co-operatives such as Fonterra, Synlait and Murray Goldburn, as well as a number of global food and beverage brands.

It is also attracting interest across other sectors and throughout the food and beverage manufacturing industry in Europe and Asia, such as Friesland Campina and Heineken.

The company has also captured the attention of those working in the lucrative aviation inspection market and is poised to make a European partnership announcement soon regarding its successful development of further advanced robot technology.

Company: Invert Robotics Phone: +61 2 9519 5411 Web: invertrobotics.com

manmonthly.com.au

Manufacturers’ Monthly MARCH 2018 41

The Last WORD

LARRY MARSHALL – Chief Executive CSIRO

To develop, create and grow

Larry Marshall, CSIRO chief executive, reiterates the goal of science is to constantly move technology and jobs forward into new eras.

M

UCH has been written on the disruptive forces of digitisation and automation that are reshaping Australia.

In many ways, we have been here before. History is strewn with examples of revolutionary change – technological, ideological, economic.

But through every invention, every revolution, every major economic shift, science has underpinned the industries that emerged from the turmoil.

So, while there is much talk of technology destroying jobs, it is worth remembering one simple truth – that science creates new industries, and industries create jobs.

As your national science organisation, it is CSIRO’s role to ensure those industries and jobs are created and developed in Australia.

And our role has never been more vital. As we’ve become more connected, our reliance on Aussie ingenuity has waned.

The most recent Australian Innovation System report showed this most starkly through examination of two kinds of “innovation”.

There’s “new to market” innovation, when a business invests in their own novel products. Only 5.5 per cent of Australian businesses were doing this. Then there’s “new to business” innovation, which describes a business adopting someone else’s idea. A more significant 19 per cent of Australian businesses reported this was their interpretation of innovation.

Clearly, we are more prepared to back someone else’s ideas, than our own.

Often, we look to overseas models when proposing solutions to our innovation challenges. But we have our own strengths and our own opportunities – and our deep science capability will underpin the next wave of transformation.

So, we have made three 42 MARCH 2018 Manufacturers’ Monthly

fundamental changes to CSIRO to ensure that happens.

Firstly, we are working at greater speed, with two programs created under the National Innovation and Science Agenda that accelerate the process of taking science from the lab bench and putting it into the hands of those who can use it to best effect.

Our national science accelerator, ON, is an intensive program for Australian scientists that takes the best ideas and speeds up their ability to make a difference in people’s lives. More than 200 teams from 30 institutions have gone through this intensive, customerfocused program, taking their benchtop breakthroughs to pilots and prototypes, ready for investment and growth.

We have also created Main Sequence Ventures, to manage the CSIRO Innovation Fund and support new spin-out and start-up companies from Australia’s publicly-funded research sector.

Second, we have reinvented our industry partnerships. In the past, we’ve unleashed our science on the world as undeveloped ideas, like a raw material dug from the ground. It’s time to shift our focus to generating our own high value products from those materials.

For example, historically we’ve made money exporting mineral sands worth pennies per pound.

We have now created technology to make titanium in Australia for the first time, turning basic sand into a component for 3D printed parts. Then we thought bigger, and with our partner, a small Australian business called Anatomics, created a custom-designed titanium sternum implant which has been saving lives in Europe, and just this year, for the first time in the US. And third, we are opening up our imaginations and allowing ourselves to think bigger. Under our Strategy 2020 we’re committed to

Australian business Anatomics, created a custom-designed titanium sternum implant that is being used globally. increasing the funding dedicated to science that will reinvent and create new industries for Australia’s future. In the past year we’ve brought in 60 new researchers to work across six Future Science Platforms, each closely aligned with the “next leap forward” in major Australian industries.

And we have just announced two more. The first is to intensify and broaden our research into hydrogen as a new renewable fuel. Australia has access to vast energy resources through sun, wind, biomass, natural gas and coal, all of which can be used to produce hydrogen. The fuel could be used domestically in transport, power generation and to offset more carbon-intensive resources, and Australia could also become a world-leading exporter of low emissions hydrogen.

We have also created a group focused on the emerging field of precision health. This will investigate delivery of contemporary and tailored nutrition and digital health solutions, creating foods and

new diagnostics to reduce diabetes, obesity, infectious diseases and specific types of cancer.

I’ve spent a lifetime believing in the power of science to transform economies, countries and lives for the better, and there’s no better place in Australia to see that in action than at CSIRO. As all our traditional industries face significant disruption, we must not allow other countries to seize the opportunities we have at our fingertips.

We have done it before, like our ongoing work hand-in-hand with the cotton industry to ensure Australian cotton is some of the most prized in the world. And we will do it again, and again.

When Prime Minister Billy Hughes formed CSIRO 101 years ago he called for an organisation of scientists charged with a mission to “lend a most powerful aid” to meet the challenges facing a fledgling nation. The mission of CSIRO remains unchanged – only the tools and methods have changed. manmonthly.com.au

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