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MARCH 2020
A radar beam focused like a laser! The future is 80 GHz: a new generation of radar level sensors
The latest cutting-edge technology from the world leader: the unsurpassed focusing of VEGAPULS 64. This enables the radar beam to be targeted at the liquid surface with pinpoint accuracy, avoiding internal obstructions like heating coils and agitators. This new generation of level sensors is also completely unaffected by condensation or buildup and has the smallest antenna of its kind. Simply world-class! www.vega.com/radar
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MARCH 2020
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26 Construction
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29 Building Materials
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13 News@MM
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42 Events
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24 Issues & Insights
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Sustainable manufacturing is important with finite resources available. However, does this mean manufacturers will be faced with added costs to processes, with only a warm and fuzzy feeling that they are doing something for the environment? Definitely not, because it is about being economically sound, as well as environmentally and socially responsible. Sustainable manufacturing brings together the product and process design with issues of manufacturing, planning and control in such a manner so as to identify, quantify, assess, and manage the flow of environmental waste. This is done with the goal of reducing the environmental impact and maximising
resource efficiency. Companies should look at using their radar beam focused waste streams toAlikeadd value. There are a laser! already successful outcomes where companies, rather than sending material to landfill, are separating it, compiling it properly, then sending it to another company for reprocessing. This changes costs into revenue. In this issue, we look at Corex Plastics, who went one better. They found that 98 per cent of their products end up going to landfill and decided the best way to save on the cost of the raw material is to recycle. So, the packaging manufacturer created their own recycling entity called Corex Recycling to manage the process. Read on to find out how they did it.
MANAGEMENT >> TECHNOLOGY >> SOLUTIONS
MARCH 2020
The future is 80 GHz: a new generation of radar level sensors
The latest cutting-edge technology from the world leader: the unsurpassed focusing of VEGAPULS 64. This enables the radar beam to be targeted at the liquid surface with pinpoint accuracy, avoiding internal obstructions like heating coils and agitators. This new generation of level sensors is also completely unaffected by condensation or buildup and has the smallest antenna of its kind. Simply world-class!
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Comment
SYED SHAH – Managing Editor, Manufacturers’ Monthly
Getting sustainable, getting ahead
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NE often hears much talk about the “end” or even the “death” of manufacturing in Australia: that economic activity in this country is more or less driven by resources, construction, services, agriculture, and not much more; that the sector that once dominated our industrial landscape – making up a quarter of Australia’s GDP in the decades after the Second World War – is no more. Indeed, for many outside the manufacturing industry, the manufacturing sector is frequently associated with Australia’s past; the dominant media narrative has it that the closure of large automotive plants in recent years marked a kind of terminal point. While it is true that the sector is currently much smaller than it once was when at its peak in the 1960s, reports about the death of manufacturing in Australia are much like rumours of Mark Twain’s demise in 1897: greatly exaggerated. Manufacturing remains a significant part of Australia’s economic activity, supporting 1.27 million jobs according to a report from AMGC, Advanced Manufacturing: A New Definition for a New Era.
6 MARCH 2020 Manufacturers’ Monthly
Further, if Australia can stay at the top of the pack in innovative and advanced manufacturing techniques, technologies and processes, there remains much potential for the sector going forward into the future. To keep the sector competitive, and to thus enable its further growth, forward-thinking companies are increasingly looking to the productivity-enhancing potential of technologies and methods that come under the term Industry 4.0: robotics and automation, artificial intelligence and machine learning, additive manufacturing (otherwise known as 3D printing), nanotechnologies and advanced materials, along with Internet of Things (IoT) sensor technology and data analytics. By the time this issue of Manufacturers’ Monthly appears in print, this year’s Industrial Internet 4.0 Summit will have taken place at The University of Technology, Sydney. Discussions at last year’s event suggested that Industry 4.0 technologies are readily available to exploit the abundance of data already produced across manufacturing operations. Increasingly, the message for
manufacturers is to join the future with digitally-enabled, data-driven automated technologies that can reduce costs, improve profits, and make the sector more competitive. But maintaining the viability of manufacturing in Australia goes beyond Industry 4.0. Making manufacturing environmentally and socially sustainable is also vital. This is the message underlying a recent report from researchers at the University of Western Sydney, Beyond Business as Usual: A 21st Century Culture of Manufacturing in Australia, which looks at ten manufacturers who have boosted their revenue by adopting methods and processes that prioritise environmental and social responsibility. In our Industry Focus feature for this month’s issue, we look into how methods that embrace the circular economy and other ethical considerations can have commercial benefits. Not only can mindful implementation of technology reduce waste and enhance efficiency, it can actually lead to job growth. While technologies do tend to replace jobs in low-skilled and routine occupations, new jobs that feature safer, more skilled and
less-routinised will expand. Further, with advancing technology, education and reskilling comes to the fore. More and more, it will be vital for resources to be placed into enabling the recruitment and retainment of the next and future generation of manufacturing workers. Our Issues and Insights feature this month also highlights the importance of sustainability for manufacturing competitiveness. We look at Corex Plastics, who, after finding that 98 per cent of its products were going to landfill, set up Corex Recycling to resupply recycled product back into the production process, drastically reducing the waste produced. The company now provides recycled product to other companies and has invested in its machines and staff to maximise the potentials of the circular economy. The turn to recycling has made the company significantly more competitive. What the example of Corex Plastics shows is that taking on the challenge of sustainability doesn’t have to be in opposition to commercial interests and competitiveness but can actually enhance the efficiency and profitability of production.
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Comment
GEOFF CRITTENDEN – CEO, Weld Australia
Fume minimisation guidelines released
S
AFETY is a critical consideration for any welding project. Welding is a safe occupation when proper precautions are taken. But, if safety measures are ignored, welders and members of the general public face hazards that can be potentially dangerous, such as the inhalation of fumes and airborne contaminants. In recent times, concerns around airborne contaminants generated by the welding process have been raised by industry, particularly following the reclassification of welding fume from Group 2B Possibly carcinogenic to humans to Group 1A Carcinogenic to humans by the International Agency for Research on Cancer (IARC) in March 2017. This reclassification was subsequently published in the IARC’s Monograph 118 in July 2018. The International Institute of Welding (IIW) through their Commission VIII experts, are evaluating the findings published by IARC and a position statement is being prepared. Following discussions with
8 MARCH 2020 Manufacturers’ Monthly
Commission VIII, Weld Australia advises that current fume management recommendations remain valid and recommends the new Technical Guidance Note Fume Minimisation Guidelines: Welding, Cutting, Brazing and Soldering and Technical Note 7 Health and Safety in Welding are followed.
Fume management recommendations In compliance with National and State Workplace Health and Safety (WHS) Regulations, conduct a risk assessment to ensure that the welder and people working nearby, are protected from exposure to fume from welding and welding-related processes (for example, thermal cutting, gouging, etc.). The following actions should be considered in the risk assessment: 1. Where practicable, remove the welder from the source of the fume by mechanising or automating the welding process. 2. In conformance with Weld Australia’s Fume Minimisation Guidelines, arrange the work
piece so that the welder’s head is not in the plume. a. Unless welding in the horizontal (PC or 2G), overhead (PD, PE, 4F, 4G) or vertical (PF, PG, 3F, 3G) position, the welder’s head is likely to be positioned within the plume, and fume management methods or PPE, or a combination, may be required. b. All welding processes generate fume. The plume may not be visible to the welder or with some processes, the observer. 3. Relying on a light cross-draught in the vicinity of the welder’s face to ensure that the fume is either drawn or blown away from the welder’s breathing zone can be unreliable. While mechanically assisted ventilation (such as a fan) can be utilised, cross-draughts sufficient to disperse fume may cause weld quality issues. Other fume management equipment such as fume extractors (fixed, downdraft or portable) may be required.
4. U tilise personal protective equipment such as respirator masks and air fed helmets if alternative methods of fume control are not reasonably practicable. Care should be taken to ensure that other workers are not exposed to the fume by allowing it to accumulate in areas away from the welding or welding related process. Specialist advice may also be sought from an Occupational Hygienist (such as registered members of the Australian Institute of Occupational Hygienists), particularly in the preparation and implementation of the risk assessment, and the verification of the application of the controls.
Weld Australia Initiatives Following the IARC findings, Weld Australia has undertaken several major welding safety initiatives. These include: 1. The formation of a national Welding Safety Council that includes representatives from industry, federal and state workplace safety regulators, manmonthly.com.au
and the Australian Institute of Occupational Hygienists. 2. Commencing the development of a safety training and education package for welders, which is consistent with world’s best practice. 3. The revision of Technical Note 7 Health and Safety in Welding. 4. The revision and publication of the new Technical Guidance Note Fume Minimisation Guidelines: Welding, Cutting, Brazing and Soldering.
The Welding Safety Council Given the serious safety implications for Australian welders, Weld Australia considers the following to be issues, in order of priority: i. Workplace health and safety (Welding Fumes and Electrical Safety); ii. Non-compliant welding equipment (Electrical Safety); iii. Integrity of welded structures and pressure vessels. To address these safety issues, Weld Australia has established
Weld Australia’s Free Fume Minimisation Guidelines are now available
The vision of the Welding Safety Council is to eliminate loss of life or injury attributable to welding. the Welding Safety Council. This Council will provide a forum for industry and legislative safety authorities to discuss issues and work collaboratively to identify solutions. The vision of the Welding Safety Council is to eliminate loss of life or injury attributable to welding. The mission of the Welding Safety Council is to establish and maintain the infrastructure required to identify and analyse welding risk, engage
its stakeholders in formulating mitigation strategies, and use its influence to execute those strategies. By drawing together key government stakeholders, statutory bodies and industry into a single independent body focused on eradicating welding related injury, the Australian welding industry will be taking a significant step forward in protecting both the general public and welders.
Weld Australia recently released a new Technical Guidance Note Fume Minimisation Guidelines: Welding, Cutting, Brazing and Soldering. This free Technical Guidance Note includes all the information required to help protect your workforce from the hazards associated with welding fumes. Be sure to download your free copy of the Fume Minimisation Guidelines from Weld Australia’s website: https://weldaustralia.com.au.
Fume minimisation seminars: register your interest now Weld Australia is planning to facilitate a series of national seminars on how to mitigate the risk of welding fumes. To register your interest in attending a seminar, please visit: http://bit.ly/fumesEOI
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Manufacturers’ Monthly MARCH 2020 9
Comment
DAVID CHUTER – CEO and managing director, IMCRC
Effective industry and research collaboration: Addressing the intellectual property challenge
O
NE of many lessons I learned as a young engineer working for an automotive supplier in the UK was about the relevance of intellectual property (IP) to a manufacturing business. This was before the digital age, and – as the most junior engineer in the office – it was my job to roll the new product design drawings (Mylars, for those who remember) from the vehicle producers across
The ownership of IP has historically been one of the primary barriers to forming successful and sustainable partnerships.
10 MARCH 2020 Manufacturers’ Monthly
the floor to decipher what had changed since the previous issue. I had found a small box in the corner of the drawings that said that any work undertaken by the supplier remained the IP of the car company. I asked my director what it meant – did it matter that we didn’t own any IP in the parts we were manufacturing? He explained that in some sectors – defence and medical, for
example – IP ownership is critical for establishing credibility and authority in the field, and to protect the uniqueness of an invention as well as deliver profitability given the sizeable upfront investments. But, he said, in manufacturing, the value was likely more in the manufacturer’s way of producing, processing and selling the product. In other words, the how of manufacturing is more important than the what. He also added that manufacturers were often better off focusing their resources on keeping their IP confidential and bringing their product or service to market as quickly as practical, rather than investing significantly in registering inventions, designs and the like. The analogy he gave me, which still resonates today, was that if he and I were asked to bake a cake using the same ingredients, equipment and recipe, our cakes would be very different. You only have to watch Masterchef to see this in action. When considering investing in IP you have to be clear on why it matters to you (at its most basic, IP is just another commercial tool), and what value you can create through ownership and exploitation of IP. This is arguably more relevant in today’s data-driven and disruptive environment. It is also relevant when collaborating with others, particularly with research organisations, where the ownership of IP has historically been one of the primary barriers to forming successful and sustainable partnerships. In the third of our threepart series on cultivating successful industry and research partnerships, we look at different ways manufacturers can address IP ownership arising out of collaborations with research organisations.
Your “secret sauce” might be more than an idea Before deciding how to manage the IP of a collaborative project, it’s important to determine what will make the product or service you are creating different – in other words, recognise your “secret sauce” or uniqueness. This “secret sauce” might not be what you design, make and sell. Rather, it might be the innovative way you create, process or sell your product or service. It might be a superior business model that lets you save time and money, so you can offer your product or service at a value that no one else can match. Or it might be your logistics, your appbased service platform or your skilled workforce that give you the edge. Or it might simply be your ability to solve a customer’s problem better than anyone else.
Not all “secret sauces” need protection Of course, in some industries, particularly those that are highly regulated like medical and defence, it’s very important to invest in IP protection, and I wouldn’t want anyone thinking that IP ownership and protection doesn’t matter – this is not the message. However, in the fast-moving world of manufacturing, the reality is protecting your invention or design in the form of a patent or design registration may be a lengthy and costly process that comes with both opportunity and risk. The opportunity is that you own the exclusive rights to the invention and can prevent others from using it. The risk is that by registering your IP (e.g. through filing a patent application), you are required to ultimately describe your invention to the world. Which means someone else may be able to play on the fringe without breaching the patent (should it be granted). In a global manufacturing industry, where and manmonthly.com.au
how to protect your IP are constantly moving targets that depend on markets, governments and their legislative regimes. It also means if someone infringes or tries to revoke your patent, you need the resources (think management, cash, legal support) and time to defend it. In today’s fast paced world prone to disruption, you might decide with your research partner that it’s smarter to invest in people and get to market quickly rather than through formal IP protection. Or, if your research partner decides they’d still like to own the IP, you might agree on an arrangement that allows for their IP ownership without preventing the project from progressing to commercialisation (e.g. licence). The key is to collaborate and not compete, and to focus on commercialisation outcomes.
Commercialisation is key At the Innovative Manufacturing Cooperative Research Centre (IMCRC), we aim to remove barriers that prevent manufacturers from
engaging with universities and commercialising collaborative R&D projects. We’ve taken several steps to help remove the perceived barrier of IP ownership. Firstly, while it is not unusual for cooperative research centres to own IP in the projects, they co-fund, we decided early on that IMCRC would not do so. Without any vested interest, we have been able to help project participants come to mutually beneficial agreements and outcomes. Secondly, before participants commence any R&D collaboration, we require them to establish and agree on why, how and when they plan to commercialise the IP arising out of their project. We also remind them to check for any restrictive IP owned by third parties globally. Thirdly, we encourage participants to think creatively about IP ownership and agree on an approach from the outset. Generally, manufacturers are open to investing in IP ownership and protection, as long as it doesn’t restrict their path
It’s important to first determine what will make your product or service different. to commercialisation. Research organisations, on the other hand, often wish to own the IP in their research, so that they can use their learnings to benefit other projects or to train the next generation workforce. A mutually beneficial solution we’ve seen is where the manufacturer has been exclusively licenced to lead commercialisation of the IP in particular fields relevant to their market. Meanwhile, the research organisation has been allowed to use
its strength, scale and connections to apply the IP in other, non-competing markets. Finally, while IP might seem initially like a barrier, we ask our participants to continue the conversation. We’ve seen robust discussions about who should own IP as part of the long-term commercialisation plan result in strengthening collaboration, respect and mutual trust between manufacturers and research organisations.
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News@MM Space start-up incubator now accepting submissions for 2020
The University of South Australia is open for submissions to the 2020 Venture Catalyst Space program.
The University of South Australia is open for submissions to the 2020 Venture Catalyst Space program, Australia’s first space incubator, which is now in its third year. The program supports space
start-ups to validate and test their products side by side with SA’s growing space industry and to complement the work of the more than 60 existing space industry companies and the Australian
Space Agency in Adelaide. The program is aimed at creating a competitive and globally recognised space sector in SA, and forms part of the state government’s $4 million Space Innovation Fund. The companies which took part in 2019 each received funding, workshops, mentoring, and introductions to the Australian space industry, as well as an advanced workspace for the duration of the program. The University of South Australia’s Innovation & Collaboration Centre (ICC) is organising the program, as the university’s startup incubator. Enabled by advanced technology resources and tools, the centre supports enterprises from idea generation to growth and expansion stages. “Since launching the program we have supported 10 companies to build out their minimum viable product, raise funds and develop
partnerships with both research and industry in Australia,” associate director of the ICC, Jasmine Vreugdenburg, said. “South Australia is home to a rapidly growing space industry, and we are once again seeking applications from local and international companies wanting to develop their networks and business ideas here.” Katrina Albert, co-founder of Lux, which took part in 2019, said that the program enabled her business to successfully build and trial its technology in a real-world setting while developing industry connections. “During our time in the 2019 program, we completed a successful test launch of a one-storey-high aerial monitoring balloon,” Albert said. “This launch allowed us to test our technology which is set to be rolled out at three South Australian mine sites this year.”
Orthocell granted patents for medical device manufacture Local regenerative medicine company Orthocell has been granted patents in Canada and Japan for the manufacture of its customisable medical device, produced in its quality-controlled facility in WA. The patents cover Orthocell’s CelGro technology, a collagen medical device which facilitates tissue repair and healing in a variety of orthopaedic, reconstructive and surgical applications. CelGro has numerous competitive advantages over existing synthetic and biologic tissue repair devices, particularly in the areas of cell compatibility, tensile strength and the promotion of quality tissue in growth and repair. In clinical studies, CelGro has shown to augment repair of severed, manmonthly.com.au
or damaged peripheral nerves, the rotator cuff tendon within the shoulder and guide bone regeneration within the jaw. The company believes CelGro represents a breakthrough in soft tissue reconstruction and offers significant global commercial potential in its existing addressable markets as well as much wider applications in general surgical and soft tissue reconstructive applications. The company estimates the global addressable market for CelGro is in excess of $6.5 billion and growing. “In line with our IP strategy, we are focused on establishing and maintaining protection of our leading manufacturing technologies and treatment processes. Securing
CelGro represents a breakthrough in soft tissue reconstruction. a divisional patent for CelGro in Canada and Japan is another milestone in strengthening our IP position in global markets,” Orthocell managing director, Paul Anderson, said. This complements the progression of our products through the
registration processes in the US, EU and Australia.” Orthocell has secured 11 patent families covering its portfolio of breakthrough regenerative medicine products, comprising 108 separate patent applications, of which 78 are granted. Manufacturers’ Monthly MARCH 2020 13
News@MM Australian company awarded US Marine Corps contract
Kord credits its export success to the Australian government’s investment.
Kord Defence has been awarded a $1.4 million deal with the US Marine Corps. The small Canberra based company credits the federal government funding for its success. Kord develops mobile interface control solutions for military and law enforcement markets, and the contract will enable them to complete development of its Rifle Accessory Control Unit Technology. The company’s range of programmable, push-button control systems enable soldiers to keep “Head up, Eyes on Target, Hands on Weapon”. The patented Kord Interface Technology (KordIT) helps soldiers operate their increasingly complex electronic equipment quickly, instinctively, and safely.
Kord’s managing director, Dr Peter Moran said development of their technology would not have been possible without the support of the Defence Innovation Hub. “Winning an Innovation Hub contract in 2017 enabled us to develop a wireless control system which formed the basis of the technology now being tested by the US Marine Corps,” Moran said. Announcing the contract, Minister for Defence Industry, Melissa Price said: “I’m pleased to see the investment our government made in Kord has enabled them to grow and pursue new export opportunities in global markets.” “Along with growing the sovereign capability of our own defence industry, this is precisely what we designed the Defence Innovation Hub to do,” Price said.
New antibody will drive deadly virus treatment manufacturing Researchers at the University of Queensland have developed a process to produce large quantities of a crucial antibody, which could be expanded to manufacture treatments for potentially deadly viruses around the world. The ability to produce antibodies at larger scales, coupled with formal regulatory approval via clinical trials, will play an important role in mitigating the impact and spread of these diseases, according to professor Trent Munro, director of the National Biologics Facility (NBF) based at Australian Institute for Bioengineering and Nanotechnology. “We’re very fortunate to have a facility such as UQ’s NBF as it offers a unique capability to manufacture these novel products – normally this would only be possible at great expense and long timelines within a commercial facility.” 14 MARCH 2020 Manufacturers’ Monthly
Hendra is a rare but deadly henipavirus that infects fruit bats; however, it can be transmitted to horses, and then passed on to humans who have had close There is the potential to use the antibody against another henipavirus such as the lethal Nipah virus.
contact with an infected horse. Professor Munro said that there was potential to use the antibody against another henipavirus such as the lethal Nipah virus
– listed by the World Health Organisation (WHO) as a priority pathogen with epidemic potential. “Enabling quick, technologydriven solutions to very serious disease outbreaks is an area where we need continued investment, or we risk not being able to respond appropriately in the future,” Munro said. The Hendra virus therapeutic antibody will be used in a world-first human Hendra virus clinical trial. The therapeutic antibody m102.4 blocks the virus’ entry to healthy human cells enabling the immune system to fight it off. The antibody m102.4 was developed by professor Chris Broder and his team at the Uniformed Services University of the Health Sciences and the National Institutes of Health in the US. manmonthly.com.au
News@MM Boeing Australia achieves milestone in military aircraft build The global aerospace manufacturer’s Australian team recently completed major fuselage structural assembly towards the first military aircraft to be developed in Australia in more than 50 years – the Loyal Wingman. “This is an exciting milestone for the development program, and the Australian aerospace industry, as we progress with production of the first military aircraft to be developed in Australia in more than 50 years,” program director, Boeing Airpower Teaming System (ATS), Dr. Shane Arnott, said. The aircraft is one of three prototypes that will be developed as a part of the Loyal Wingman – Advanced Development Program in partnership with the Royal Australian Air Force (RAAF). The Australian team has applied digital engineering and advanced composite materials to achieve cost and agility goals for the 38-foot (11.7-meter) aircraft, which is designed to use artificial intelligence in teaming with other manned and unmanned platforms. “Boeing is progressing very well
with its development and we look forward to seeing the final product in the coming months,” RAAF director-general of Air Combat Capability, Air Commodore Darren Goldie, said. “The partnership with Boeing is key to building our understanding of not just the operational implications for these sorts of vehicles, but also making us a smart customer as we consider options for manned-unmanned teaming in the coming decade.” A 16-strong Australian industry team was critical to the program’s rapid development, according to Arnott. The team included: • BAE Systems Australia, who delivered hardware kits including flight control computers and navigation equipment; • RUAG Australia, who delivered the landing gear system • Ferra Engineering, who delivered precision machine components and sub-assemblies to support the program; and • AME Systems, who have delivered wiring looms to support the vehicle.
Boeing Australia has completed major work towards the first military aircraft to be made in Australia in 50 years. This first Loyal Wingman prototype will provide key lessons toward production of the ATS, which Boeing Australia is developing for the global defence market. Boeing’s customers will be able to tailor ATS sensors and systems based on their own defence and industrial objectives.
The next major milestone will be weight on wheels, when the fuselage structure moves from the assembly jig to the aircraft’s own landing gear to continue systems installation and functional testing. The aircraft is expected to complete its first flight this year.
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News@MM $2.15 million towards NSW’s fabrication future The NSW government has awarded $2.15 million to strengthen the Australian National Fabrication Facility’s advanced materials process, 3D printing, and 3D bioprinting capabilities. The ANFF Materials Node, headquartered at the University of Wollongong, will use the funding to take the next steps towards manufacturing commercial opportunities through advanced materials and 3D printing. “For the ANFF Materials Node, this announcement unlocks access to state-of-the-art materials synthesis and fabrication equipment,” ANFF Materials Node director, distinguished professor Gordon Wallace, said. “These procurements will ensure we stay at the forefront of global advances in new materials and their deployment in devices for energy and medical technologies.” The facility will leverage
funding: to enable expansion, including the building of industry-standard process lines to assist the commercialisation of novel semiconductor products, bioprinting, and quantum technologies; to enhance additive and subtractive manufacturing suites; and, to acquire or upgrade advanced patterning, etching, and deposition equipment for specific materials. This is in addition to supporting the operating costs of hundreds of pieces of existing equipment, approximately 40 staff, and a network of open access laboratory and clean room spaces that are used by hundreds of researchers and engineers each year. Over the past few years, micro and nanofabrication capabilities available in NSW have helped Sydney become a world-leading quantum hub, with expertise in the 3D printing of biological
material for clinical applications; experience developing printable solar panels that could turn struggling printing companies into manufacturers of affordable clean energy technologies; and producing award winning communication technologies that could speed up download speeds without having to replace existing infrastructure. ANFF provides open access to micro and nanofabrication equipment and expertise at 21 locations across Australia. Six of these locations are embedded with NSW universities. The ANFF received the funding across six of its sites, as part of an overall $8 million boost to NSW’s research sector provided by the Office of the NSW Chief Scientist & Engineer. The funding will be used to complement support provided by the National Commonwealth Research Infrastructure Strategy
Over the past few years, micro and nanofabrication capabilities available in NSW have helped Sydney become a world-leading quantum hub. (NCRIS) in 2018 – which totalled $36.6m in the national ANFF network – as well as significant funds from the six NSW universities that offer ANFF equipment.
AMGC and Incat Crowther to advance local ship manufacturing The Advanced Manufacturing Growth Centre (AMGC) will collaborate with Incat Crowther to advance Australia’s ship-manufacturing sector. Incat Crowther is also the 1000th member of AMGC’s manufacturer network. “Incat Crowther is pleased to join
AMGC at a time when manufacturing across the globe is evolving to become more advanced and nowhere is this more evident than in Australia,” Incat Crowther’s technical director, Dr Andrew Tuite said. “AMGC is assisting us as
Incat Crowther currently has 82 ships under construction in 17 countries.
16 MARCH 2020 Manufacturers’ Monthly
we transform the traditional shipbuilding industry into a smartship manufacturing sector to meet the challenges of developing bespoke ships for unique operating environments.” Advanced ship manufacturing is a flexible, agile business model that meets the demands of market fluctuations, new technology and innovation, regulatory changes and the requirement by the ship operator, for quality control processes and build cost efficiencies Incat Crowther specialises in the manufacture of ships across commercial, military and private yacht sectors, locally and abroad. It currently has 82 ships under construction in 17 countries, ranging in length from 20 – 125 metres. “Since our foundation, AMGC has been able to build an enviable network of Australian manufacturers
who are actively engaged in advancing their industry and workforce skills, and we welcome Incat Crowther to our membership base,” AMGC’s managing director, Jens Goennemann, said. “Over the past four years, AMGC has had the privilege of working across a multitude of sectors. When it comes to advanced manufacturing AMGC uncovers and fosters great examples of Australian manufacturing capabilities to rival any country. “While all the right signals are there, Australian manufacturers can do more to embrace advanced manufacturing principles. We aim to build an Australian manufacturing industry that is highly skilled and resilient, that competes on value not cost and that manufactures some of the world’s best products,” said Goennemann. manmonthly.com.au
News@MM Australia’s first international rocket test announced Queensland based Black Sky Aerospace will conduct Australia’s first privately operated, international rocket motor test and sounding rocket launch campaign, together with UK company Raptor Aerospace. “Australia is playing an increasing role in the world’s space ambitions and we are playing a significant role in enabling access to an efficient, cost-effective service,” Black Sky Aerospace (BSA) CEO and founder, Blake Nikolic, said. “This campaign with Raptor Aerospace will drive additional export opportunities of Black Sky Aerospace’s technology, whilst solidifying Australia’s position as the place to conduct research and testing, before undertaking expensive orbital launches,” continued Nikolic. BSA is both a manufacturer of aerospace products and a launch provider. The launch will take place in Queensland, at the Beyond the Blue Aerospace sub-orbital launch facility outside of Goondiwindi in mid-February 2020. Prior to blastoff, the Raptor Aerospace team will test and space qualify their own launch vehicles and systems. Undertaking the test and recovery campaign in Australia is more practical than carrying it out in the UK, according to BSA, as the vast launch
and recovery area in Queensland will completely resolve any logistical, population or airspace challenges. “It is very difficult to embark on a land-based rocket launch campaign in the UK, where the desired outcomes are the recovery of the systems for further analysis. This is due to the dense population and busy European airspace,” a BSA spokesperson said. Raptor Aerospace is headquartered in Norfolk, UK and provides practical training, simulation and small launch vehicles to the UK and greater European space industry. “Whilst the development of the new spaceports in the UK will ultimately allow some of our commercial activity to occur on ‘home soil’, many customer payloads and test flights, where recovery of sensitive electronics after flight is critical, will need a land range to fly from,” Raptor CEO, Ben Jarvis, said. “Black Sky Aerospace have been a great partner in our development so far in offering us access to a suitable inland site and invaluable expertise that we hope will lead to an ongoing commercial collaboration that forwards space access in both countries.”
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News@MM National blockchain roadmap released The National Blockchain Roadmap is an important step towards improving the nation’s productivity, according to Minister for Industry, Science and Technology Karen Andrews who released the roadmap. “The Morrison Government has worked collaboratively with industry and researchers on this roadmap, which outlines what we can do together over the next five years to deliver benefits for our nation from blockchain technologies,” Andrews said. “The National Blockchain Roadmap, sets a number of signposts for the future, highlighting initiatives that include the development of common frameworks for blockchain education, working with Austrade on a capability development program for start-ups and pilot projects with other countries. “Blockchain technology offers great potential to save money, initiate new business
The roadmap showcases blockchain opportunities outside the financial sector. and export opportunities, boost economic growth and create new jobs. Governments and private industries all stand to benefit from embracing this technology.” The roadmap showcases
blockchain opportunities outside the financial sector and explores the wide benefits that can be harnessed through blockchain. Some of the benefits include tracking a product along the supply chain, checking
credentials and transferring customer information. According to PWC, while financial services are seen as the most advanced industry in developing blockchain (46 per cent) compared with industrial products and manufacturing (12 per cent), these figures represent a shift away from the financial services sector as the near-exclusive user of blockchain technology in 2017 (82 per cent) and a growing engagement with blockchain’s potential across a broader range of industries. The global research and advisory firm, Gartner, predicts that by 2023, blockchain will support the global movement and tracking of $3 trillion worth of goods and services annually. Australia can contribute to an estimated global annual business value of over $260 billion by 2025 generated by blockchain, according to Andrews.
Trade surplus recorded for 2019
Australia has posted a trade surplus of $67.6 billion in 2019. Australia has posted a trade surplus of $67.6 billion for the 2019 calendar year, according to data released by the Australian Bureau of Statistics, with the value of exported manufactured goods showing a modest increase. Minister for Trade, Tourism and Investment Simon Birmingham said 18 MARCH 2020 Manufacturers’ Monthly
the trade surplus was supported by record levels of goods and services exports. Figures from December show the export price index of manufactured goods classified chiefly by material rose by 0.4 per cent for the year from December 2018, while “miscellaneous” manufactured
articles rose 3.3 per cent for the year. Falls in iron ore and coal prices drove down export prices. “Australia has now for the first time, posted a monthly trade surplus for 24 consecutive months, helping to boost our economy and create more jobs,” Birmingham said. The ABS data showed that Australia posted its largest ever calendar year trade surplus of $67.6bn, while also posting a $5.2bn trade surplus in December 2019. Goods exports rose 13.4 per cent to a record $391.8bn in 2019, with services exports rising 8.9 per cent to a record $101.1bn. “Despite these strong results, we are acutely aware of the current domestic and international challenges our economy and exporters face as a result of the drought, coronavirus and bushfires,” Birmingham said. “That is why our government continues to pursue further free
trade agreements with our key trading partners including with EU and shortly with the UK, to open up new markets for Australian farmers and businesses. “By making our exporters more competitive in more markets around the world, these agreements will help to keep the fundamentals of our economy strong. “We also look to forward to seeing the benefits start to flow for our free trade agreement with Peru which comes into effect in February and our trade deal with Indonesia which is now only a matter of months away.” Quality assurance undertaken by the ABS confirmed that the bushfires did not result in any impacts to International Trade in Goods and Services statistics for December 2019. The ABS says it will continue to undertake additional quality assurance in the coming months. manmonthly.com.au
News@MM Queensland launches $1 million export grants program Queensland premier Annastacia Palaszczuk announced a $1 million export grants program, in early February, to help Queensland businesses “go global” by launching their products in overseas markets. “Exports are vital to Queensland’s economy, vital to regional businesses and vital to regional jobs. Queensland has around 7,300 goods-exporting companies, of which 40 per cent are based in regional Queensland and one in five Queenslanders rely on exports for their livelihood,” Palaszczuk said. “My government is always looking at ways to help the state’s regional small to medium-sized businesses to go global, which is what this program will do, but this support is even more important at a time like this. There is no better time to back our exporters to tap into other markets.”
Palaszczuk had, earlier, announced the creation of an economic recovery group to assist local government, business and industry implement response actions to mitigate the impact of the coronavirus. The premier said Queensland was facing challenging times for exports. “Historically, Queensland’s economic success is largely due to its regional strengths in food and agribusiness, tourism, and mineral and energy resources,” Palaszczuk said. “The regions also offer exciting emerging opportunities in tropical science, advanced manufacturing, biomedical and life sciences and renewable energy, which are elevating Queensland’s competitive advantages.” Under the Go Global program, successful applicants will receive micro-grants up to $5,000 and macro-
grants up to $25,000. “I encourage eligible export-ready small- to medium- sized companies to apply,” Palaszcuk said. The funds will help companies overcome barriers to exporting when working with a new buyer or in a new market, including: • market-entry requirements such as registration, documentation and compliance; • costs associated with product testing and redesign, product approvals, trial export programs (logistics), meeting export market requirements, and seeking professional advice on contract negotiation, IP advice, and counterfeit protection; and, • gaining export accreditation such as Good Manufacturing Practice, Hazard Analysis Critical Control
Under the Go Global program, successful applicants will receive micro-grants up to $5,000 and macro-grants up to $25,000. Point or Halal accreditation. “Queensland’s merchandise exports reached $85.3 billion in the 12 months to November 2019 – a rise of $4.4bn on the same period last year. This second only to Western Australia and higher than the value of exports from New South Wales, Victoria and Tasmania combined,” Palaszczuk said.
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IndustryFocus
Why an sustainable manufacturing sector is vital to a competitive one Manufacturers are centring sustainable considerations towards staff and the environment as a way of creating viable enterprises and attaining revenue. Manufacturers’ Monthly reports.
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NSURING Australian manufacturers continue to make things and remain competitive on the global stage means addressing questions of a just and sustainable sector – sustainable in both senses of the word: environmentally, as well as commercially. Western Sydney University’s Beyond Business as Usual: A 21st Century Culture of Manufacturing in Australia is framed around how Australian manufacturers are tackling ethical challenges in their operations, it is at its core about the viability of the sector. One of the report’s writers, Professor Katherine Gibson, explained the motivations behind the academic research project into the culture of manufacturing. “The era that came out of the Accord which had kept that sort of branch plant manufacturing 20 MARCH 2020 Manufacturers’ Monthly
in Australia had come to an end and people were asking: do we actually make anything anymore? Are we actually just about mining, tourism, services and finance?” she said. In the introduction to the report, she quotes a managing director of Interface, a manufacturer of modular carpet tiles that has been operating in Australia since 1988, describing the changes the sector has gone through. “Manufacturing is not as visible as it used to be. It doesn’t have big smokestacks, and big industrial sites, and people with pickets outside anymore. When you get in there it’s invariably clean and smart and clever ... it’s no longer the Dickensian sawtooth roof with steam belching out of pipes.” In launching the report, Dr Mehreen Faruqi, the Greens’ spokesperson for industry, addressed
misconceptions about manufacturing and its viability. “The Centre of Future Work has tried to dispel some of the myths about manufacturing that we often hear, that it’s an old industry, it’s a dying industry, that it’s impossible to save, that Australia is too expensive, or too remote to compete in manufacturing globally,” Faruqi said. “There’s no question that we have had, in Australia, a decline of manufacturing. But it still employs close to one million people here! It’s a big part of the way our economy and our lives work.” In fact, manufacturing remains a significant activity in Australia’s economy and supports 1.27 million jobs. “Despite these myths, however, the reality according to the Centre for Future Work is that advanced manufacturing opens new frontiers, and you see that in the case
studies presented in this report,” Faruqi said. The report looks to ten local manufactures who, by centring ethical considerations towards staff and the environment, are, in fact, creating viable enterprises and attaining revenue. Soft Landing, for example, recovers and disassembles end of life mattresses, recycling the components back into the circular economy where possible. It was established as a response to the increasing number of mattresses that were being dumped in NSW as a result of an increase in the fee charged to dump mattresses at local landfill sites. Currently, Soft Landing recycles 75 per cent of the components and turns them into other products, including steel springs into roof sheeting, the foam into carpet underlay, husk into weed matting and mulch, timber into kindling, manmonthly.com.au
IndustryFocus
mulch and animal bedding, and fabric into acoustic panelling. While the goal is to recycle 100 per cent of the mattress, for which they have been working with researchers from the Centre for Sustainable Materials Research and Technology, Soft Landing does not refurbish mattresses for use as mattresses as they are not satisfied the risks to people’s health can be managed. While the waste industry has elements that one Soft Landing employee described as “cut throat” – where mattresses are taken straight from the kerbside, their covers pulled off, a new cover sewn on, and then sold as a new bed – Soft Landing rules out engaging with these competitors. “Although we’d have made a truckload more money and had less headaches at every step of the way, we said: ‘We’re not getting involved in what we see as unethical behaviour.’ Had we done it and maybe made a lot of money and maybe made some more jobs, but manmonthly.com.au
we would totally undermine our credibility,” a general manager said. Having now been in operation for ten years, the company has an annual revenue of $12,000,000. With more than 1.6 million mattresses discarded in Australia each year, there is no doubt that recycling the components from mattresses is an environmentally sustainable endeavour. Soft Landing is also the recycler for an industry wide mattress product stewardship scheme, which includes Australian mattress manufacturers such as A.H. Beard. Soft Landing has another mission in addition to environmental sustainability. It intends to provide employment opportunities for people who experience barriers to entering the open labour market, including people who have experienced longterm unemployment. In 2015, Soft Landing was acquired by Community Resources, a national not-for-profit organisation that creates jobs for those that experience disadvantage and face barriers in the labour market. As part of this, the organisation provides considerable training and support for their employees as part of its approach. A widely expressed concern is that new technologies such as automation will result in job losses but, the report suggests, the evidence is that innovation can lead to jobs growth. Germany is considered to have handled the implementation of advanced technology into its manufacturing sector most successfully, as its manufacturing sector accounts for 20 per cent of employment, generates 22 per cent of GDP and contributes 82 per cent of Germany’s goods exports. A study, published in 2011 and based on innovation and employment in more than 1,000 German manufacturing firms, for example, found that innovation had a positive effect on employment. The effect was stronger for process innovation (i.e. new processes for manufacturing goods) than for product innovation (i.e. new products). Further, a 2019 Deloitte Report
asked senior-level managers from 760 companies in 16 European countries what impact they expected new digital technologies (including robotic process automation and AI) would have on their labour force. Of the participants, 41 per cent expected their full-time labour force to increase, 29 per cent expected it would stay the same, and only 23 per cent expected it would decrease. Furthermore, 54 per cent of managers expected that new digital technologies would go hand-in-hand with investment in staff training. While technology tends to replace employment opportunities in lowskilled and routine occupations, it also extends employment opportunities in more skilled and less-routinised occupations. “The reality is maybe one day you will be able to do mattress recycling with AI, or at least the sorting of the materials during the process. So, our constant challenge is going to be how do we stay knowledgeable about emerging technologies, so we don’t get blindsided by it. But also, how do we balance incorporating technology that keeps us productive and competitive but does not dilute or compromise the best working outcomes and conditions we can provide our staff who bring a lot of expertise and
ideas to the deconstruction and recycling process too,” Soft Landing’s Community Resources partnerships manager said. The current approach Soft Landing takes is to provide training and support to staff, so that they develop new skills. “We were able to upgrade to a route optimisation system in our fleet through the support of one of our philanthropic partners. Some of our staff were initially hesitant with the new system and technology, but we were fortunate to have inhouse ICT staff support managers and staff to really understand how it would function and to provide on-site training and walk people through the system change,” the partnerships manager said. “With this type of change in technology, if you don’t go with it you could be creating a gap for staff in keeping up with the industry. We are supporting them to be skilled and to succeed.” The experience of Norco also shows how technologies can be carefully integrated into operations in a way that takes into account the human factor. Norco is a dairy products manufacturer, and it also manufactures its own packaging. It is a producer co-operative, with 309
Soft Landing recovers and recycles end of life mattresses back into the circular economy.
Manufacturers’ Monthly MARCH 2020 21
IndustryFocus
Sustainable manufacturing operations can make the industry more competitive. members and 834 employees, and an annual revenue of $603 million. Norco’s production is highly automated with processing lines for milk bottling and ice cream making. While it increases efficiency and helps to cut production costs, at Norco it is the human impacts of automation that are considered when making decisions about where and how to introduce and use technologies. One of the operations managers describes the introduction of automation as “a fine line”, because the regional based producer relies on its employees to buy its products. One way that Norco addresses this concern is to introduce automation to reduce physical stress on employees. “What we look at first is our OH&S as far as repetitive tasks … there are several of those sorts of tasks that are throughout all three of our manufacturing sites. So, we look 22 MARCH 2020 Manufacturers’ Monthly
at those first and ‘Can we automate that?’ That’s how we start making our decisions.” These new technologies are introduced with training and support, and with worker participation in the design of production processes. Managers, supervisors and operators jointly devise procedures and ‘decision trees’. One effect is that some decision-making is being devolved to the operators on the shopfloor who now take on increased responsibilities. The other effect is that the quality of the jobs has changed and there is now greater cooperation between staff. “If we’ve got machines breaking down all the time or wasting a lot of product, then stop the machine. You can make that call. We understand,” the operations manager said. “You’re the one who knows the machine, you run it … it’s your machine. You take ownership.”
One of the managers describes this as a transition from “button pushers” to operators who have an eye to the whole process, not just their piece. The approach taken by the companies to focus on the appropriate training and support for new technologies uptake among staff is consistent with the research that places importance on investments in education and skills development at all levels, including in schools, in TAFE, in universities and in firms. The challenges are rather “recruiting and retaining a new generation of manufacturing workers and providing existing workers and new recruits the requisite skills for the twenty-first century technologically advanced factory.” For Faruqi, we can’t talk about the future of manufacturing and not talk about vocational education and training.
“Because of the way that our technology is advancing, we’ll need people to be reskilled, retrained every few years or less even. And unless that is accessible, we will not get the twenty first century manufacturing sector that we want,” Faruqi said. She cites funding cuts to the TAFE system, increasing fees and privatisation as contributing to the skills shortage the sector is facing. What’s missing in creating a competitive, as well as a sustainable, manufacturing sector is not industry but political leadership, according to Faruqi. “We need a strong change in their vision, the right policy mix, investment and support to get us there. This future is well within our reach, but there are a few prerequisites. Leadership is at the top of that list, and this report is part of that leadership, but we also need manmonthly.com.au
IndustryFocus that from politics as well. Industries are leading, universities are leading, communities are leading, so politicians and our governments must start leading as well.” The recommendations made by the Western Sydney University report are as direct. “The Australian public has become used to hearing that what stands in the way of a more viable manufacturing sector is a business culture that is not sufficiently innovative and labour relations that are too combative,” the report states. Alongside debunking these misconceptions with casestudies of innovative and ethical manufacturers, the report makes recommendations for government to undertake towards creating a viable and competitive manufacturing sector. It recommends policies centred around strengthening the connection between manufacturers; increasing the diversity of finance
sources for manufacturing; supporting succession planning and transition to maintain existing manufacturing capacity; and, increasing the profile of just and sustainable manufacturing. As part of strengthening the connection between manufacturers and the “ecosystems” in which they are embedded, it suggests developing place-based clusters of manufacturers to generate mutual benefit and support local economic development. This could mean forming manufacturing clusters, such as the HunterNet Cooperative Limited, a network of 200 manufacturing, engineering and specialist service companies in the Hunter region that together conduct training joint marketing initiatives, joint project bids, trade missions and tendering. It could also mean adopting anchor institution models. In these models, the procurement spend of locallybased institutions and businesses is directed to other local businesses.
As part of increasing the diversity of finance sources available for manufacturing, it suggests establishing manufacturing-focused patient capital funds, with priority for those manufacturers that have just and sustainable manufacturing at their core. This could include low interest loans for established companies with long-term commitments, or equity-based crowdfunding. It could also mean investigating legislative changes to strengthen the financial base for co-operatives, such as providing tax exemptions on the internal reserves of co-operatively owned capital. As part of supporting successful succession planning and ensuring that existing manufacturing capacity is not lost includes supporting the membership-based organisation Family Business Australia, which provides support for family businesses to plan for succession or support for family businesses to transition to different
enterprise ownership forms. To increase the profile of just and sustainable manufacturing, some of the report’s suggestions include providing further support for programs that link schools and manufacturers in meaningful ways, and adding case studies of just and sustainable manufacturing into university-level Engineering and Business School curricula, as well as promoting certification programs that verify the social and environmental performance of companies. The report looks to the Green New Deal, which aims at promoting the shift to renewables, thereby prompting new high-tech industries that are distributed around the country and no longer tied to centralised energy grids. The future that is projected as part of the Green New Deal is one in which technological advancements do the heavy lifting of economic transformation.
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Issues&Insights How sustainable manufacturing can make your bottom line sing One of the biggest barriers to adopting sustainable manufacturing practices can be cost, but some companies are finding that these practices are yielding economic benefits beyond simple savings. Manufacturers’ Monthly looks at how employing circular economy thinking is enabling manufacturers to be more competitive.
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HEN Corex Plastics, which has been extruding and fabricating plastics products in Australia for over thirty years, decided to undertake a review into their manufacturing process to identify any possibilities for efficiencies to be made, they found that a they were losing 98 per cent of their product to landfill. “A huge amount of our product was going to landfill, and it’s a very valuable commodity to us because the best thing to make our sheeted products out of is our own sheet product,” general manager of Corex Recycling Matt Nettleton said. “About 80 per cent of our cost is raw material, and as we started looking at our supply chain, we realised we were pretty efficient. We were only generating about 2 per cent scrap. However, we were losing 98 per cent of the product to our customers and, unfortunately, most of the time it was going to landfill. “We needed to make sure we stopped our products from going to landfill, but that we also retained that value to get as many lives out of the material as possible.” So, eight years ago, the industrial and packaging plastics manufacturer created Corex Recycling as a separate business entity to manage that process. “While 12 years ago we were using, on average, two per cent recycled content, we’re now up over the 70 per cent mark for every kilo we produce being recycled material,” Nettleton said. “We saw an opportunity to use recycled materials, so we invested in it and became fully vertically
24 MARCH 2020 Manufacturers’ Monthly
integrated, which makes us not only more environmentally friendly but far more efficient as well as.” Today, though they are interconnected sister companies – with Corex Recycling supplying material back to Corex Plastics – Corex Recycling has grown and now has customers of its own. “The whole intention when we first created Corex Recycling was solely to collect Corex Plastics products and return them to Corex – and integrate them back into the manufacturing process. What we found very early on is that we’re actually really good at recycling,” Nettleton said. “Our knowledge in plastics extrusion translated very well into plastics recycling and, because we were recycling at the same site, we got immediate feedback on any variation in the product or issues with the material. We were able to really fine tune our recycling process. “What we found was that our quality standards were so high that it translated very well into other markets like injection moulding. And so we very quickly went from having 98 per cent of our product going directly to Corex to, within two years, having 30 per cent of our product going to Corex, and the other 70 per cent was actually going out to other customers.” Today, the company’s largest customer is an injection moulding company that makes decorative products and exports them globally. “We found we started sourcing different material streams than just coreflute, the Corex product, we
started sourcing all sorts of different plastics, from printed labels off of water bottles, to plastic bags, to posters that you see on bus shelters, and we started making that into products for other markets.” They also quickly found that because recycled materials can be so variable and different in format, they needed to invest to develop in-house processes. “We developed sorting machines and sorting processes that were unique to the feedstocks we had coming in, so we were able to recycle products that would typically go to landfill that other people wouldn’t recycle. We relied heavily on our in-house engineering team to build these machines and the equipment to aid us in our recycling process,” Nettleton said. “Our investment in technical knowledge, both in people and machinery, has been critical to our success in being able to use the maximum amount of recycled materials.” While the objective behind the recycling business was to make efficiency gains and to reduce its environmental footprint by replacing its prime materials with as much recycled materials as they managed to salvage, Corex found unintended benefits along the way. “The energy savings achieved by using recycled materials is about 83 per cent. If you’re using a prime or virgin material, you have to drill through the oil, suck it from the ground, and polymerise it into a product. Whereas if we’re using something that necessitates significantly less energy input in
getting it back into a resin that’s used in our process, we get massive energy savings and a huge CO2 reduction. “That was one of our big drivers. The other was that we didn’t want to see any of our product go into landfill either, we wanted to be the custodians of that polymer. We wanted it back to put it into our products again and again and again to make sure that we got the maximum value out of something that’s made of a non-renewable resource.” The result is a significantly more competitive company. “What I love about the fact that we use so much recycled material is that we’ve really created a culture and a business around being recyclers and utilising that recycled material as efficiently as possible,” Nettleton said. “While we get the triple bottom lines that sing, great economic value, and amazing environment impacts, it’s also really important that our people are behind it. “When we talk to our employees and we communicate to them how much CO2 we’ve saved, how much landfill we’ve diverted, and how many cars that’s removed off the road, how many homes the energy savings could power for a year, it’s amazing how that really resonates and motivates people. I think this has really done a great thing for our culture as well.” Not all manufacturers can set up their own recycling business like Corex, however. For those that can’t, there’s the Advisory System for Processing, Innovation & Resource manmonthly.com.au
Issues&Insights
Corex’s custom colour recycling. Exchange (ASPIRE). ASPIRE is an online marketplace, using smart technology to help businesses deal with their waste resources by intelligently matching them with potential remanufacturers, purchasers or recyclers. Formed out of the CSIRO in 2015, it was originally developed as a proof of concept project in response to manufacturing companies talking to their local councils about waste disposal costs – particularly those associated with increasing landfill levies. From food to steel manufacturing, there are approximately 180 different types of commodities that get exchanged on the platform currently. “ASPIRE helps businesses comply with what’s in the circular economy policy that’s coming out soon,” ASPIRE chief executive officer Cameron McKenzie said. “If you’re a manufacturer that has an excess resource that you normally pay a lot of money to get rid of or to store in a warehouse, you can upload that into ASPIRE and you have three different choices for what to do with it. You can get rid of it for free; if it just takes up a lot of space in the warehouse, you can sell it, or you can pay for sustainable disposal. “We give businesses another option. Rather than send it to landfill, it’s an opportunity for businesses to use ASPIRE and turn a resource that they spend a lot of money on storing or getting rid of into a revenue stream. For example, we have a lot of timber pallets – they’re a very common item that gets exchanged on ASPIRE. We also have a lot of plastics – for packaging, that’s a huge manmonthly.com.au
one. There are users out there that need these commodities and will pay for them.” A study looking at Australia’s waste policy predicted that a five per cent improvement in the “efficient use of materials” across the economy could increase economic output by up to $24 billion each year. According to McKenzie, ASPIRE diverts over 45,000 tonnes from landfill annually and saves businesses over $200,000 a year. Those figures, however, were calculated when there were between 150-200 businesses on the platform. There are now almost 400. The platform goes further than a simple passive waste exchange, however, by actively suggesting business to business collaborations. “ASPIRE actually integrates Industry 4.0 and the circular economy,” McKenzie said. The CSIRO called it “an Australian example of industrial symbiosis where a digital tool supports a social business network”. “There’s an algorithm that sits inside ASPIRE. When someone is looking for product x and someone’s got product x, it matches them automatically. But there’s also an algorithm that will match you with a material that is very similar to what you’re looking for in order to stimulate innovation in the selection criteria,” McKenzie said. Behind the platform lie analytics which also look at what the environmental impact of the end use Corex’s recycling facility.
will be. It preferences those which will emit less carbon dioxide and those which are nearer, and thus require less transport. ASPIRE has matched businesses with excess styrofoam with a company which shreds it before mixing it with concrete for thermal bricks for construction. It has matched a food manufacturer with surplus produce with businesses that pick it up and distribute to disadvantaged people. As a result, the food producer was able to cut its rubbish bill from $8,000 a month to $1,500. While the savings are a bonus, according to Nettleton from Corex Recycling it’s what they enable that is the great advantage. “The whole thing has really allowed us to be competitive against imported products and to continue to grow and manufacture in Australia,” Nettleton said. Meanwhile, the region’s first energy-from-waste (EfW) facility will soon open, promising another alternative for manufacturers looking to dispose of waste while simultaneously contributing to energy generation. Veolia Australia has been selected to operate and maintain the first Energy Recovery facility in the country in Kwinana near Perth. The plant will generate approximately 40 mW of clean energy. Globally, Veolia operates over 60 EfW facilities. “Veolia uses its breadth of environmental solutions to promote
the re-use and replenishment of our natural resources wherever possible,” Veolia’s sales and BD manager, Chris Janka, said. “For example, in Brooklyn, Victoria, we have specialised technology in the form of Indirect Thermal Desorption (ITD), which treats hydrocarbon impacted filter cake by removing the water and hydrocarbons from the filter cake and condensing this back into an alternative fuel. Our focus is on renewing and replenishing resources (‘cradle to cradle’ rather than ‘cradle to grave’), giving these a new life to contribute back to the economy.” The waste management provider says it has consistently adapted to a changing manufacturing sector in Australia. “Over the last 3 years, we have lost our automotive manufacturing base here in Australia, and this has changed some of the waste types we receive at Brooklyn. It has meant a shift of focus for our business in regard to the industrial clients we now service,” Janka said. “We now provide services to a range of other manufacturing businesses, including high-tech specialised manufacturing, while also increasing focus on small to medium enterprise (SME) businesses.” Veolia offers specialised services for manufacturers, according to Janka, including industrial waste management for materials such as manufacturing filter cake, solvents, paint based products, chemicals, catalysts, and various production material generated by the manufacturing sector. When changes to the Environmental Protection Act come into force in July 2020 they are sure to include new guidelines manufacturers will have to adhere to regarding their responsibilities as waste producers. Though environmental concerns are an ever-present challenge for businesses today, the solutions need not cut into revenue and, in fact, can generate economic benefits. As Nettleton put it, you can get “the triple bottom lines that sing, great economic value, and amazing environment impacts” all in one. Manufacturers’ Monthly MARCH 2020 25
Construction How to get your facility adapted to your operations
Manufacturers’ Monthly speaks to Total Construction’s Rob Blythman about how a thorough understanding of your operational needs can help keep your facility build affordable.
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O, you’re expanding, and you’ve found the perfect facility and it just so happens to be completely fitted out to accommodate your operation. This is the ideal scenario, right? Not so, according to Total Construction – more a construction solutions provider than a builder. “A lot of our clients think they have found the perfect facility and then realise halfway through the process that it’s not going to work for them,” said Rob Blythman, general manager of Total’s Engineering Construction Group. “For example, when a client moves from a small operation in a 400sqm facility to a 1,000-2,000sqm facility and it happens to be a food factory, for instance, and its already fitted out, they think they’ve struck gold. 26 MARCH 2020 Manufacturers’ Monthly
“Often, they quickly realise that the facility doesn’t work for their process at all, so they end up ripping half of it out, cutting up the floors, etc., and that becomes more expensive than if they had decided to build from scratch. “If we’ve got a blank canvas, that’s easier to work with than something that’s already a fitted-out factory. If it’s already a factory, it’s the worst building to pick, because you will have to compromise your process flow to suit what the previous occupant had.” Reusing materials doesn’t save you money either, unfortunately. For instance, according to Blythman, an insulated panel costs you more money to rip down and move to another part of the facility than to put in a new piece.
“People think the walls and roof are the expensive part, and that’s the cheapest part of any building. It’s not materials that cost money in Australia, its labour. “Ninety per cent of the time you’re better off with something new. It’s quicker to install something new, and you don’t have the hassle of trying to keep it all in one piece while you’re moving it, which triples the time it takes and, therefore, the cost” As such, Total recommends involving your builder earlier in the process, ideally during the scoping and design stage known as Early Contractor Involvement (ECI). Having the builder involved at this stage allows for critical cost items in any build or fit-out to be identified. “Engineers look purely at the process and the way the process will
run, which might mean going upstairs, downstairs, down conveyor belts and up mezzanine levels. We, on the other hand, give the manufacturer a clearer picture of what they’re going to trip over, cost-wise, in terms of the build. We may look at the facility and find that, actually, there’s no need for mezzanine levels because you have enough floor space. That’s going to save you significantly on the building costs.” Involving a builder with a process engineering capability, such as Total, enables a different set of eyes to see the requirements and suggest alternatives to the building layout that don’t just reduce the need for costly building works, but potentially improve the process flow altogether. “We give clients the whole picture: here’s the extra cost and manmonthly.com.au
Construction here’s the risk not to do it, and you decide,” Blythman said. Total conducts site investigations on existing and proposed facilities to detail and identify all of the services required and what is possible at the new site. For example, to increase power or gas supply to a site can be very costly and create delays. Total identifies these bottlenecks early on in the process to avoid the hassle that comes with retroactively realising what the issues are. A review into the buildability of facilities enables Total to compile design layouts with the intention to optimise process flows to best fit the client’s objectives. “You might need increased power to the site. Most facilities only allow for 300 amps, but you might need 1,500-2,000 amps to run all of your equipment. There might not be gas available, and you might have big gas furnaces that you need to run,” Blythman said. “Manufacturers typically don’t care if it costs an extra 20-30 per cent if it does what they need it to do. It’s better than paying less and it doesn’t do what they need to do. That’s what keeps them up at night, and we’re in the business of taking
Total Construction conducts site investigations on existing and proposed facilities to identify client requirements. away that headache.” Being a construction solutions provider means that Total Construction is not in the business of taking a one size fits all approach to building projects. Rather, Total is agile in the way it tailors services to clients and offers a range of project delivery models. “We think about the client’s equipment inside the building first,
and about the perfect layout and perfect positioning of everything inside the building, services included. You might need compressed air here, steam there – we do all that first and then we design the building around it. Because you’re never going to get exactly what you need available on the market, you’re going to have to adapt to the building, or have the building adapt to you.”
With more and more manufacturers of all sizes implementing Industry 4.0 technologies, however, facilities are changing in order to accommodate new equipment. “We see a lot of clients putting in automated storage and retrieval systems; they’ve got to expand their warehousing and their facility to do that. Putting in full automation
Having an understanding of the whole operation is essential in building the right facility.
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Construction
Total Construction possesses the engineering capability to improve process and operational flow for clients. systems in their production lines means they’ve got to do changes to their services as well. Where they didn’t have compressed air, they’re going to need compressed air; where they didn’t have steam, they’re going to need steam; drainage might need to be included in the project. That’s why we focus on project engineering.” With every project, the company looks for innovations to improve “buildability” and offers value engineering solutions, where possible, to ensure the best possible outcome for clients. Early involvement and a close relationship with the client is key. In fact, according to Blythman, Total likes to become part of the client’s project team rather than a service provider. “The client is key in deriving the ideal design and process flow. We involve all stakeholders from the client side to develop the design and layout that fits perfectly with their operational needs,” he explained. “It’s the way we’ve always done business and the way we’ve always approached a project. Clients like that we know their business almost as well as they do.” Another bonus to doing business this way is that it enables clients to accurately budget. 28 MARCH 2020 Manufacturers’ Monthly
“Rather than being approached by a client who tells us, ‘This is what we need to do’, and then asks, ‘How much will it cost me?’, we set a budget and design the build program around what money they have available. We can show you what you can build and what you can fit out for that level of funding,” Blythman said. “They might go to a normal builder and that builder will say, ‘Yep, no worries – that will be $1,000
per square metre to build you a warehouse-type factory!’ But what about if they need extra strength in the floors? That’s extra concrete; you need 200-600mm of concrete to hold heavy pieces of equipment. “The average builder says, ‘I know how to build the walls and the roof, not all these manufacturing specific needs.’ So they can’t get a good grasp on the cost, which is why you then get sticker shock, because you think its
$1,000 per sqm, and they do all the budgeting based on that. But when it comes to building the facility to suit them, it is $2,500 - $3,500 per sqm.” Total’s transparent and agile mode of engagement with their clients, however, eliminates the possibility of sticker shock. “Whether you’re planning for expansion or a new building, we want you to think, ‘Let’s talk to Total first.’”
Knowing operational requirements can help keep the cost down on a build.
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BuildingMaterials Belting the chain in plasterboard Roller chains are a standard fixture of manufacturing plants, however, CBC Australia’s Mark O’Brien explains why a polyurethane belt is a superior alternative, especially in plasterboard manufacturing.
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HEN a piece of equipment fails, not only does it usually require costly repairs, but it also often shuts down production. This can lead to flow-on costs that build up the longer it takes for the problem to be solved, and in a competitive manufacturing market such as the building materials sector, it can be a cost that some simply cannot afford. Plasterboard is one of the most popular building materials for interior walls and ceilings, and manufacturing it usually requires an advanced production line. Stages of its production include the creation of a slurry, which is then spread, formed and folded before it is hardened, cut and dried. If at any point during this production process a machine breaks down, the entire process could grind to a halt. Mark O’Brien, CBC Australia product manager for Belts and Rubber Products, said manufacturers value longevity, as it means there is less downtime impacting operations. This is why, he said, the Gates Poly Chain GT Carbon synchronous belt has been popular in the plasterboard industry. Poly Chain is a polyurethane belt that replaces traditional roller chain applications for power transmission. It uses carbon fibre tensile cords to provide an increased power carrying capacity and extended flex fatigue life, helping it withstand shocks, surge loading and heavy abrasion. In addition, O’Brien said that, unlike metal roller chains, Poly Chains can’t rust. “Because roller chains are usually coming into contact with other metal components, they need to be kept well lubricated,” he said. “Roller chains also need to be retensioned to avoid them from failing, which
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Poly Chain GT Carbon belts are 96 per cent lighter than the equivalent length of roller chain. can be costly in terms of downtime and labour.” “Poly Chain GT Carbon belts require no lubrication, no retensioning and are resistant to chemicals, oil, pollutants and abrasion,” he said. “This slashes the amount of maintenance required to keep machines running to almost zero – once you install it, it’s set and forget.” Polyurethane is also much lighter than metal, meaning that Poly Chain GT Carbon belts are around 96 per cent lighter than the equivalent length of roller chain, reducing the potential for fatigue, strain and risk of pinching. In areas of transition on a production line, such as those in plasterboard manufacturing, using Poly Chain GT Carbon reduces maintenance in areas that are hard to reach or where the environment
needs to be kept clean. O’Brien says the technology and development of polyurethane timing and synchronous belts has come a long way since they were introduced used 15 years ago. “Poly Chain GT Carbon is the most advanced timing belt on the market today,” he said. “Back in the early 2000s, this kind of belt wasn’t as easily available or as trusted.” “Now, with the progress that Gates has made in its products, polyurethane belts can be used in a wide variety of different applications and processes. “The market has responded positively to this and has been opening up to the idea of using Poly Chain instead of roller chain.” Gates distributes its power transmission products through CBC and the two companies work closely to ensure the Australian market is supported with engineering and
after sales support. CBC operates more than 35 branches around Australia, with each employing qualified product managers and engineering support teams to provide everything from design, installation and fitment. The company can also provide extended support for those looking to redesign their plant to reduce downtime in the most efficient way possible, alongside offering training for maintenance staff and close support. O’Brien says most of the branches carry their own stock range, supported by major distribution centres on the east and west coast. “Gates and CBC have had a strong relationship since the early 90s and both have grown over that period,” he said. “We’re forever looking to extend this in Australia to provide the best value to customers.” Manufacturers’ Monthly MARCH 2020 29
Technology How to keep things simple in the age of technological disruption Vega Australia’s latest product range is all about keeping things simple and reliable.
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ITH wave after wave of innovation constantly emerging and promising to disrupt the industry in new ways, it can be overwhelming to keep up. According to Vega Australia’s managing director, John Leadbetter, however, what manufacturers are craving, in this new normal, is simplicity. “They just want to be able to rely on the equipment that’s in their plant. They don’t want complicated equipment, they don’t want difficult equipment – they want simple equipment,” Leadbetter said. “One of the other things that people are looking for is, like all things these days, they want things more compact. So, instead of having large equipment out there, they want small compact equipment that’s easy to operate and easy to understand. Because, at the end of the day, if something breaks it’ll be a simple and safe process to unplug it, pull it out, put a new one in, plug it back in and have it all back up and running.” As a long-standing supplier of process measurement technology to the process industry – including mining, water, grain, oil and gas – Vega Australia has the technical expertise and capabilities to supply its sensors to the automation and manufacturing markets. Vega was formed in Germany in 1959 and has been located in Australia since 1987. With more than 60 years’ experience and 33 years supplying to the Australian market, the company is well known for its agile approach to product development in the markets that it has traditionally supplied to. “How we improve our products, is based on customer feedback. We listen to what customers say, and
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we say, ‘Okay, that’s something the market is looking for; we need to develop the product to suit those market conditions.’ We don’t ask the market to adapt to us, we adapt to the market,” Leadbetter said. After a move more than four years in the making, Vega Australia finally launched a new product range targeted exclusively towards the automation and manufacturing industry on January the 1st, 2020. “We haven’t suddenly made this decision. The decision to go into this industry took over four years, during which we looked at it, we invested in the research, we invested in the possibilities, we invested in what the requirements were, and then we developed the products to go into this market,” Leadbetter explained. “We identified the manufacturing and automation industry as massive, so there are two ways we tackled this. First, we talked to customers, or the endusers themselves. “Second, we’ve been approaching machine manufacturers worldwide and asking them to have a look at our products and use our products on their machinery. This way, when that machinery turns up to the customer, it has already got Vega
equipment on there.” In making the decision to supply to this market, Vega looked into adapting their products to the market. “We took away some of the features that people are not looking for in the industry without compromising performance or quality but, rather, scaling them, standardising fittings, standardising cable plug systems and delivering them in a package attuned more towards the automation and manufacturing industry. In short, we’ve adapted to this market, rather than asking the market to adapt to us. “One of the other things we looked at was the industry standards. For instance, if a customer is using a certain product and we come along offering something they prefer, then it’s a simple changeover for the customer. We’re making it so that
Vega launched a new product range targeted specifically at automation and manufacturing in 2020. the customer’s choices and the customer’s ability to make a change is made simpler.” One of the ways in which Vega is incorporating those disruptive innovations, specifically the IIoT, and still keeping it simple, is by introducing Bluetooth communication into its general range of instruments. “We decided that if we add Bluetooth to these particular instruments, we’ve already got something new for the market that no one else is doing. And, so, we’ve looked at the industry’s communication systems and we’ve adapted our electronics to their systems. “The reason we went down that path is that the majority of people manmonthly.com.au
Technology these days carry a smartphone, so by downloading a free app, they’re able to communicate or calibrate the particular instruments by something they carry around in their pocket and have easy access to the equipment. So, no longer do we need expensive test equipment or expensive calibration equipment – today, it’s all about simplicity and ease.” Leadbetter explained that the new product range specifically for the automation and manufacturing industries is broken down into four core areas. “The first one is a level transmitter for small tanks in the food, pharmaceutical, and chemical industries. They basically display the contents or the amount of material, liquids or solids in those particular tanks or vessels, which is necessary for clients to know exactly where their inventory stands. We did that with a small range of radar level transmitters. “The second thing we looked at was pressure transmitters. Now the ones that we previously had were heavy industry pressure transmitters meant for very rugged environments – mining, oil and gas. So, again, we’ve taken those
Bluetooth technology has been incorporated into the instruments.
How we improve our products, is based on customer feedback. We listen to what customers say, and we say, ‘Okay, that’s something the market is looking for; we need to develop the product to suit those market conditions.’ We don’t ask the market to adapt to us, we adapt to the market.
Vega’s success is attributed to its adaptability to the market.
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concepts and we’ve said, ‘Okay, in a dairy situation or a pharmaceutical situation, they’re not looking for ruggedness, what they’re looking for is strict hygiene or food approval or pharmaceutical approval’. In other words, your fittings must be of a certain specification – we’ve done that. “The third thing we looked at was a simple device, basically an alarm point system, to show if your tank is full or empty. Not everyone wants to know the contents all the time, some of them just want protection from overfilling, or running out of material, so we’ve
come up with a simple level switch. “The fourth thing we came up with was a controller where you can feed the sensors into the controller and it might monitor pumps, control valves, control gates. Again, we’re giving the customer not only the solution in the vessel, but we give them a solution where they can control their operation.” With more than 60 years’ experience, Vega has proven it has put in the time, the research and the commitment into improving and simplifying their products – and now manufacturers, too, can benefit. Manufacturers’ Monthly MARCH 2020 31
ManufacturingStrategies
ELGi’s vocational training facility is spread across 18,000 square feet.
Leading the charge of manufacturers who want to give back ELGi Equipments is committed to a new sustainable means of doing business through its corporate social responsibility program.
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ITH its innovative Always Better (AB) range of waterinjected air compressors, ELGi proved their commitment to sustainability. What is less known to the industry, however, is how seriously the company takes corporate social responsibility (CSR). ELGi’s AB range is an oil-free environmentally friendly option, which boasts approximately 8-10 per cent reduced lifecycle costs when compared with other oil-free technology. The water-injected compressor uses recycled water to cool down the air and the rotors of the machine. With the company’s innovative Heat Recovery System, approximately 96 per cent of the heat generated during the compression process, which is normally dispelled into the atmosphere, is recovered and then utilised to heat air and water. This eliminates the need for additional equipment to heat air or water, thereby reducing CO2 emissions and energy consumption significantly. It
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also offers a substantial disruption to the tradition air compressor market as well. “Our AB range is very energy efficient, reliable and comes with a low-cost of ownership. They also rev at a lot lower speed than other compressors, at 2200 rpm, so they’re not working as hard as others,” business development manager, Brian Vegh, said. As well as investing in research and innovation to make eco-friendly products, the company is putting its money where its mouth is with social initiatives. “What ELGi do is they put a lot back into the environment. For example, they recycle the sand from the castings in the foundry, to be able to make it into bricks. They then use those bricks to build schools in the local area,” Vegh said. In 1989, ELGi established a school – which now boasts 1,400 children from pre-primary to higher secondary level – to provides affordable education to
children from rural communities in the outskirts of Coimbatore in India. Students from orphanages in the area are entitled to receive free education and accommodation in the school’s hostel. Through significant investment, the ELGi school places emphasis on STEM, hoping to nurture the next generation of innovators. The company has also established
a vocational school for those students who have completed high school and are financially incapable of furthering their education. Vegh recently visited the vocational school for two weeks in October. “They take young kids who want a job, mentor and look after them. Some of these kids are orphans, and they’re each assigned a personal mentor to
Dedicated ELGi employees are known as “Elgians”.
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ManufacturingStrategies train them for the first two years. The mentor shows them how to build a healthy lifestyle, a good work ethic, and basic time management skills. The show them what to eat and how to turn up to work on time, as well as all the other regular skills of an apprenticeship. “Each apprentice has to do a test to complete their apprenticeship where they have to tigthen and loosen screws in under 46 seconds. Then, they get the kids to do it with their left hand! It’s unbelievable how fast they can do it.” The vocational school is spread across 18,000 square feet. It includes multimedia classrooms and a worldclass training centre, includings its own fitting shop, machining, welding and electrical workshop. Now in its tenth year, the school has recently had a run of female students too. Dedicated ELGi employees or “Elgians” from various functions run the training program. The trainees are provided free boarding and stipends for the duration of the training. Hans-Joachim Schrodt, who has over 30 years of experience as a vocational trainer in the fields of general mechanical engineering, CAD/ CAM, mechatronics, mathematics, and physical education mentored the design and implementation of the program. His contributions have been critical for establishing the core of the program. “They’re giving these kids a future, which is important, but it is also smart because there is a concerning shortage of skilled tradespeople,” Vegh said. The vocational program is not another CSR initiative for ELGi. Skilled manpower is increasingly scarce in the market, and ELGi found it challenging to replace its older, skilled workforce from the market. It needed the talent to align to its high-quality standards and commit to long-term careers. Similar to its manufacturing processes, ELGi elected to “vertically integrate” its talent pipeline via the vocational program to identify talented youngsters from challenging backgrounds to fuel the next generation of production line talent at ELGi. Over six years, ELGi has inducted 130 trainees from its vocational program. With an average manmonthly.com.au
ELGi has an average employee tenure of 20 years. employee tenure of twenty years and the lowest attrition level in the industry, for ELGi, the vocational training program is a business strategy. “Just talking to some of our dealers across Australia recently, people who’ve owned a dealership for over 25 years, they’re not seeing as many young people coming through nowadays. What they’re doing at ELGi in India, it’s really setting an example for what we should be doing here,” said Vegh. “They’re providing these kids with not only a future but a career in an industry where it’s a job for life. When you get a job with ELGi, it’s a job for life – and not many companies offer that for their staff. You walk around the production line in the factory and everyone’s smiling, they’re happy to be there because it’s a matter of pride to work for ELGi in India, and you see that in the workmanship and the quality. And they set that standard of quality from the very start.” When Nagaraj had completed his 10th year of schooling, for example, he had to take a job to support his family despite his strong academic performance. ELGi selected Nagaraj for its inhouse vocational training program. The program allowed Nagaraj to finish his schooling and set upon a course for a career at ELGi.
Nagaraj is now a young machine operator, responsible for a critical step in the screw compressor assembly process. He was recently awarded ELGi’s Kaizen Superstar award in 2016 for reducing manufacturing time while retaining quality. A current student, Brinkans Anto, said that the training is supported with practical demonstrations. “If we study about a machine, we learn more about it in the practicals next. This makes it easy for us to understand,” Brinkans said. Students are exposed to a factory setting to familiarise themselves with components, processes and functions. By the time of his final assessment, Brinkans will have worked in the factory long enough to understand the complexities behind each process, the intricacies involved in seeing a product through its completion and would have no qualms about taking up additional responsibility. “If I am confirmed with this job, I wish to own a house, car and bike and enjoy life happily with my parents,” Brinkans said. ELGi has about 1,500 employees in India, with a very high retention rate. Some employees have been with the company for over 40 years. “It’s because they really look after their employees and their staff, basically from a young age, and they
value them,” Vegh explained. Established in 1960, ELGi is celebrating its 60th anniversary this year. The prize, which recognises excellence in total quality management (TQM), has been awarded annually by the Japanese Union of Scientists and Engineers since 1951. ELGi is the first air compressor company to win it. Initiatives included in ELGi’s TQM drive include 400 hours of employee training per person for those on the shop floor, implementing in-house and external quality education, as well as the vocational training school. The manufacturers have also gained a reputation for the design and manufacture of screw compressors, their strategic partnerships, as well as a commitment to continuous research and development. “We’re always looking to do something different, like the AB range, to provide total compressed air solutions in all segments, and we work in an environment which encourages collaboration and creativity to do this. “You don’t build a brand overnight, but we’re getting there. We have over 500 machines currently out in the market, from small encapsulated 5kW machines to big 250kW ones working in mine sites across Australia, our machines are out there and they’re standing up to the test.” Manufacturers’ Monthly MARCH 2020 33
Distribution How to achieve efficiency gains without compromising quality From a small start-up to a global distributor, Mouser is a growth success story. Renowned for its delivery speed, the company, nevertheless, does not compromise on the quality of the components it distributes.
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Mouser’s Mark Burr-Lonnon.
ITH an insistence on high-quality distribution standards, providing complete traceability on more than 5 million products from over 800 manufacturers, it is a feat that Mouser Electronics reaches every day: to be an industry leader for delivery speed and introduction of the widest selection of the newest products in the industry. Mouser is registered to AS9100D/ ISO9001:2015 and is the first authorized distributor to receive SAE AS6496 accreditation for anticounterfeit measures. Having these aerospace registrations reflects a
The wireless warehouse management system is streamlined for nearly perfect pick-and-ship operations.
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Mouser’s 1,000,000 sqf distribution centre in Texas, USA. commitment to distributing only authorised, genuine components with the least risk of forgery. Its zero-tolerance policy and strict adherence to these standards tells customers that Mouser is an authorised distributor of the highest quality components by providing traceability, risk management, process control,
customer support, product availability and document control. With high quality assurance measures, it is not just the speed of delivery that is a feat; the awardwinning electronic components distributor is also determined to specialise in the rapid introduction of new products and technologies. Most orders placed through its industry-leading website, Mouser.com, are processed and ready to ship in 15 minutes or less, enabling same-day shipping on orders to over 630,000 customers in 223 countries/territories from its massive 1,000,000 sqf state-of-theart distribution centre. “When you need the right part, right now, think of Mouser Electronics,” said Mark BurrLonnon, Mouser’s senior vice president of global service and EMEA and APAC Business. “Our mission is to be the source of the newest products, with the most extensive selection of semiconductors and electronic components most preferred by research and development teams, design engineers and buyers to design, prototype, and innovate. We hope to help shape the engineers, innovators, inventors and start-ups who will create future technological wonders.” According to Burr-Lonnon, manmonthly.com.au
Distribution Mouser’s distribution centre is at the core of the speed and accuracy for which they are known. “The wireless warehouse management system is streamlined for nearly perfect pick-and-ship operations, delivering a 5-Sigma confidence rating, better than 99 per cent. We can process orders with incredible speed and efficiency to help accelerate time to market for our customers.” While the company has been around since 1964, its North American distribution facility has undergone significant expansion in the last couple of years and will boast 1,000,000 sqf upon completion of current construction. Burr-Lonnon was instrumental in helping lead the international growth of Mouser from midsize United States electronics distributor into a global player focused on serving the unique needs of design engineers and buyers worldwide. Today, Mouser offers 27 customer service centres around the globe, strategically positioned to provide local language, currency and sametime-zone support. Many of the company’s efficiency gains have to
Mouser’s automated machines reduce an employee’s walking time by 45 per cent.
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Mouser now has 55 Vertical Lift Modules. do with the incorporation of the latest automation and computer systems into its operations. The company is making substantial capital investments in state-ofthe-art automation systems to expand capacity and maximise efficiencies, Burr-Lonnon explained. The company demonstrates this investment by employing technologies and techniques including sophisticated asset tracking, highly automated systems and processes, and advanced algorithms for procuring parts and managing inventory levels. Burr-Lonnon cites the implementation of advanced technologies, such as the Vertical Lift Modules (VLMs), as driving many of the efficiencies at its global distribution centre. “VLMs are essentially giant vertical filing cabinets, complete with shelves and an automated elevator, that store tens of thousands of electronic components. When activated by the employee, the VLMs deliver the components directly to the workstation, vastly increasing
Mouser is now authorised for more than 800 manufacturers, as a global distributor Mouser Electronics is expanding its footprint and growing its business position to meet increasing customer demand worldwide. efficiency and floor space. The automated machines can reduce an employee’s walking time by 45 percent or higher,” Burr-Lonnon explained. Mouser now has 55 VLMs, 11 of which are brand new modules, helping Mouser’s distribution teams greatly expedite orders. By planning and directing Mouser’s global growth and expansion activities, Burr-Lonnon also plays a role in ensuring Mouser’s manufacturer base and product portfolio are in alignment with supplying the divergent global demands of design engineers and buyers across Europe, Asia-Pacific and other strategic world markets, complementing Mouser’s global product strategy.
“Mouser is the industry’s leading New Product Introduction distributor with the most extensive selection of semiconductors and electronic components,” stated Burr-Lonnon. “We continually enter new distribution agreements with manufacturers to expand our product offerings, increase inventory levels and SKUs to satisfy customers’ buying needs and expand into developing and growing technologies.” “Mouser is an authorised distributor for more than 800 manufacturers, and we are expanding our footprint and growing our business position to meet increasing customer demand worldwide,” he concluded. “It’s an exciting time for us.” Manufacturers’ Monthly MARCH 2020 35
Bearings Keeping Australia’s cotton gins spinning Australian machinery is pushed to the limit in the cotton industry, which is why selecting the right products to keep that machinery in good working condition is critical.
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N sport, Australia often has a reputation for punching above its weight, and this is something the nation is often proud of. Less commonly recognised, however, are the industries where Australia is a leader on a global scale, outperforming other countries with industries much larger in size. The cotton industry is one such industry. According to a report by Statista, Cotton production by country worldwide, 2019, the US is the second largest producer of cotton – after India, as of 2018/2019, and Australia is the eighth. However, the Australian industry is far more effective than its overseas counterparts, producing 70,000 bales of cotton per gin per year compared to the 20,000 bales per gin per year produced on average in the US, according to the CRDC report’s New Ginning Technology for Australian Cotton. Much of this difference is in the way Australian machinery is pushed to the limit, making effective maintenance, and the right components, critical. Furthermore, Australia’s cotton producing regions are located in harsh environments that contend with high temperatures and frequent droughts, meaning that
selecting products with the right constitution is a distinguishing feature of this productive industry. Mick Locke, technical sales representative at CBC Toowoomba knows these conditions all too well, having been immersed in Queensland’s cotton industry. “I started in the cotton industry 13 years ago, and back then we were in drought, and cotton gin operators were constantly calling on us. So it was about getting in there, finding out what was in the cotton gin, and seeing what you can give them to improve things. “It’s come a long way from there, with a bit of rain a few years back, but now we’re back to drought.” Despite these weather issues, the cotton crop continues. Planted in spring, the cotton is harvested in autumn, and then sent to cotton gins for the fibres to be separated from the seeds. During this intensive process, where cotton gins are running 24 hours a day, seven days a week, Locke is intimately involved to ensure that each component in a cotton gin is working smoothly so that Australian producers can continue to beat their US counterparts for cotton production. “During the processing of the
The Spherical Roller Solid-Block Housed Unit is used to operate on fans and lint cleaners. cotton, I’ll go and see them, and then, when they’ll have shutdowns and issues within those periods, they’ll make a note of it and say, ‘We need to look at this after the season is over, and what else can you offer us here because we’re having this problem’, and then we’ll look at what’s the best solution in there.” When an issue does arise, Locke draws upon the extensive range of CBC products to keep the cotton gins turning. “It comes to giving them information on what’s the best solution for them as well as why you think that’s better for it,” said Locke. “It’s mainly bearings, belts, power transmission, and conveyor belts. The other thing it
comes down to is a one stop: they can just ring me and ask for whatever they really want, rather than them chasing different suppliers. “Within CBC, Inenco and now with our global game too, with Motion Industries in the US, we can really access just about anything.” One product that Locke and the cotton producers often turn to is the Timken Spherical Roller Solid-Block Housed Unit, formerly known as “Blue Brute”, for its distinctive blue cast steel housing. First developed for the heavy loads of the timber industry, the Spherical Roller Solid-Block Housed Unit is often relied upon by cotton producers to operate on fans and lint cleaners.
70,000 bales of cotton are produced in Australia each year. 36 MARCH 2020 Manufacturers’ Monthly
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Bearings According to Locke, the Spherical Roller Solid-Block Housed Unit is often called upon to replace a bearing supplied by an original equipment manufacturer when it reaches the end of its life. “The way that works is we’ve upgraded existing bearings to get more life for production.” Why the Spherical Roller SolidBlock Housed Unit is preferred is its durability and ease of replacement. Kim Hollier, service and sales engineer at Timken Australia explains why. “It’s much faster to install and it easily converts from what we call a fixed to a fast float position. Our spherical roller bearing also runs very cool due to its revolutionary design.” This distinctive unitised design is characterised by the blue, cast steel housing that comes in one single solid block. The machined feet allow for each housing to be replaced without the shaft needing to be realigned. This stands in contrast to other bearings that Hollier has come across. “In the past, cotton producers removed the style of bearing that was in the lint cleaner. To remove it they had to use oxy acetylene torches to cut the bearing from the shaft whereas the Timken solid block bearings are much easier to remove.” However, Hollier highlighted that what really sets the Spherical Roller Solid-Block Housed Unit apart is its ability to run cool. “The biggest problem with
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bearings is heat generation because heat will degrade the lubricant. If you’ve got a bearing that runs cooler to start with, your lubricant lasts longer – consequently, the bearing lasts longer.” When relubrication is required, the bearing contains a centremounted grease nipple for quick relubrication to ensure new grease is channelled directly onto the rollers where it is needed. Ensuring that these products are available to cotton producers is the 24-hour support that CBC provides, to match the demands of the cotton producing season. “They run 24 hours a day, 7 days a week,” said Locke. “They could ring me at 1 or 2 o’clock in the morning needing something that they haven’t got there and it’s a matter of getting it to them as quickly as I can deliver it. When they’ve asked about 24-hour support from other suppliers, they’ve been given a blank look. With us, they know we’ll be there for them.” The area that Locke covers includes the large cotton producing regions of south-western Queensland where inperson support is appreciated. “I can sit in the car for eight hours from Toowoomba to Emerald, and then five and a half to six hours to Cubbie Station.” This face-to-face support is something that distinguishes CBC from the original manufacturers of cotton gin machines, highlighted Locke.
CBC provides 24-hour support for cotton producers.
Manufacturers’ Monthly MARCH 2020 37
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Compressors Energy savings taken to the next level Manufacturers’ Monthly caught up with Sume Perera, business line manager, Chicago Pneumatic Compressors Australia, to talk about the energy saving features of their new permanent magnet CPVS PM screw compressors.
P
RODUCT reliability and energy savings are important to all customers but particularly pressing for manufacturers. Chicago Pneumatic Compressors is a brand that understands this as a manufacturer of high-quality compressors. When speaking to Manufacturers’ Monthly, Sume Perera, business line manager for Chicago Pneumatic Compressors Australia, said that the company’s commitment to innovative design, technology and durability is all about making sure the customer’s requirements are looked after. “People have different types of requirements in terms of value and what they can afford. At Chicago Pneumatic Compressors, we have listened to the concerns of our customers and come up with viable choices for their industrial needs. For instance, it is like shoes – we purchase and wear them according to reliability,
The energy efficiency is made possible with the oil cooled IPM motor and imperium variable speed technology.
comfort, and affordability. The same goes with compressors; customers have different requirements and preferences,” explained Perera.
Manufacturing applications and industries Compressed air is one of the primary utilities required by the manufacturing sector. Whether used for air tools or pneumatic controls, compressed air is a staple for industrial facilities. “It can be used from the smallest industries like tiny engineering firms to big power stations or a steel mill,” said Perera. “Our compressors are small in footprint, they range from 5.5kW to 355kW and therefore, they can be used in a multitude of applications across the board. The CPVS PM model is good for medium- to large-sized manufacturing facilities. It could be used across mining workshops, The CVSPM model is good for mediumto large-sized manufacturing facilities.
production workshops, food and beverage manufacturing facilities, packaging material manufacturing and electrical and component manufacturing facilities.”
Where energy savings come into play These days, manufacturers are seeing the cost of energy as a major business expense. The percentage of energy used by compressors is high. Because of this, it is important to have a compressor that is big on energy savings. Perera explained that the CPVS PM is Chicago Pneumatic Compressors’ high-efficiency permanent magnet screw compressors and they are their most energy efficient compressor to date. The energy efficiency of these manmonthly.com.au
Manufacturers’ Monthly MARCH 2020 39
Compressors The payback or the return of investment in this compressor could come within three years which is impressive. Sume Perera business line manager, Chicago Pneumatic Compressors Australia
screw compressors is due to a new and innovative drive train with an oil cooled interior permanent magnet (IPM) motor and imperium variable speed technology. Both the IPM motor and variable speed technology have been designed and developed in-house. “This is an innovative technology because it takes energy savings up to 45 per cent as the drive train of the unit is combined with the variable speed technology above IE4 efficiency level – hence you will get a quicker return of investment,” said Perera.
The return on investment In terms of durability, Perera said that the compressor can be used for 10 years or more. In general, facilities that use air compressors tend to change their compressors every 7-10 years. However, it all comes down to the energy usage of the compressor. With a good amount of energy savings, it is possible to get a return on investment (ROI) from the compressor within 3 years. “The payback or the return of investment in this compressor could come within three years, which is impressive,” said Perera. Reliability is what that makes this ROI a reality and that is made possible with the technology within the unit, said Perera. One of these key elements would be the imperium variable speed technology of the CPVS PM. The imperium variable speed technology in the unit regulates the motor speed. Like the IPM motor, the Imperium inverter is also designed in-house and matches the compressed air supply to the actual demand. 40 MARCH 2020 Manufacturers’ Monthly
The 4.3 graphical touch screen gives all the information the customer needs.
According to Perera, this ensures that no energy is wasted, which will cut down energy bills and increases an operation’s sustainability. Perera also highlighted the need for quality filtration in a compressor. The dust particles are prevented from entering and damaging internal parts of the compressor with a two-stage air filter. The oil quality is maximised with the oil filter in the unit. The energy efficient radial fan provides optimal cooling air at a low noise level. Within the unit, the fan has been strategically placed at the side of the compressor. Perera described it as being similar to a car’s filtration system. “In a car, if the air filter is dirty, the oil will get dirty and that won’t be good for the car because you will get engine problems. The same concept applies to air compressors. So, you do need to have a very good quality filtration system – one like in the CPVS PM. In addition to the two-stage air filter and the oil filter, the energy efficient radial fan enhances the cooling of the entire system which in turn increases the
reliability of the machine,” said Perera. The other key element in the unit is the two separate cooler blocks – one for air and one for oil. This reduces the risk of thermal shock and increases reliability. “Thermal shock is a phenomenon when the coolers are blocked, the operating temperature of the compressor goes up and that will affect the reliability of the drive train or the screw element. The coolers can become dirty very easily depending on the environment that it is being used in,” said Perera. These cooler blocks on the CPVS PM are mounted on gliding rails for easier access when cleaning and making service a one-person job. All components of the unit have a long lifetime and are easy to reach for a faster service and minimises downtime to your productivity.
Always be in control All Chicago Pneumatic CPVS PM Compressor products come with a 4.3-inch graphical touch screen
controller. All the information that the customer needs – whether it is service and breakdown warnings – can all be accessed at the touch of a button. Compressed air usage can also be monitored via the controller. The Intelligent Connectivity System (ICONS) system that’s built into the unit enables the user to monitor the compressors remotely. “There is built in GPS system within the compressor which means as soon as it is started up, data can be transmitted to the customers’ mobile devices or personal computers. So, if they use the interface of the program application and input their information about their machine, they can get all the details of their machine and how it is performing remotely,” said Perera. Speak to an expert at Chicago Pneumatic Compressors Australia today about the CPVS PM on 1300 555 284 or visit the site at www.cp.com/en-au manmonthly.com.au
APRIL 2020 – ADVANCED MANUFACTURING EXPO Manufacturers’ Monthly is a proud media partner of National Manufacturing Week, which is hosting the Advanced Manufacturing Expo in Sydney this year. Our special edition is distributed ahead of the event, and bonus editions will be available at the show. In April 2020, we speak with companies taking part in the Advanced Manufacturing Expo, to support their participation in this important event.
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To book contact DANILO CORTUCCI now danilo.cortucci@primecreative.com.au | 0434 419 663
Events Advanced Manufacturing Expo promises a world-class line-up in 2020 Every manufacturer has the potential to be advanced. That is the premise of the Advanced Manufacturing Expo, showcasing advanced manufacturing processes and practices across a jam-packed three days.
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HE manufacturing industry is undergoing a historic revolution across the globe. Instead of focusing solely on mass production, the sector is evolving by integrating new technologies and expertise throughout every aspect of the value chain. The future of Australia’s manufacturing industry, therefore, lies in embracing smarter technologies and upgrading business operations. The Advanced Manufacturing Expo is a free-to-attend trade exhibition, with the latest hightech manufacturing solutions on offer, adjoined by a world-class conference, featuring expert speakers in the industry. This year’s expo will be about driving further innovation in local manufacturing, continuing the evolution of the industry’s advanced technology solutions, sharing insights to stay ahead of the game, while also celebrating Australian manufacturing’s resurgence. Exhibitors on the expo floor will present manufacturing technologies from the widest range of suppliers, all in one place. Attendees can explore the exhibition floor to source
This year’s expo will be about driving forward innovation in manufacturing.
42 MARCH 2020 Manufacturers’ Monthly
Attendees will be able to explore the latest products and services across the exhibition floor. breakthrough products and services to improve business productivity and global competitiveness. Event organisers have identified six key product zones, and so the expo will be divided into: Automation & Robotics, Engineering, IIoT, Additive Manufacturing, Welding Technology and Machine Tools.
These zones will help visitors navigate the extensive range of products on offer and discover solutions to numerous challenges in improving operations, quality, productivity, and global competitiveness. Expert speakers will share valuable insights and case studies on how to transform business operations. Whether you want to adopt advanced business models or upgrade production techniques, Advanced Manufacturing Expo has three days packed with sessions led by industry experts. With the global manufacturing landscape more competitive than ever, Australian manufacturers need to invest in smarter technologies and improve every step of their business operations. Advanced Manufacturing Expo 2020 offers a unique opportunity to connect with buyers, suppliers and decision makers by providing the manufacturing industry with a glimpse into the future, delivering the latest technology, research and development to redefine and grow
manufacturing businesses. The Advanced Manufacturing Expo will be held at the Sydney Showground, from 13-15 May, and is free to attend. To find out more, please visit: https://www.advancedmanufacturing expo.com.au/
The event will bring together buyers, suppliers, and decision makers in one space.
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Events Why workplace health and safety matters With some of the highest rates of serious work-related injury claims, manufacturers should see workplace health and safety as a priority. The Workplace Health & Safety Show 2020 intends to equip businesses with the tools, skills and the knowledge to address WHS properly and efficiently.
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ANUFACTURING has the second highest serious claim frequency of any industry in Australia, with an average 8.9 serious claims per million hours worked across the various sub-industries. The highest frequency rate is in the fabricated metal product sub-industry, which recorded 24 serious claims per million hours worked, according to government body Safe Work Australia. As such, the industry is identified as a national priority for the reduction of fatalities and serious claims. From using artificial intelligence,
data and analytics to predict and prevent injuries to incorporating WHS into an Enterprise Risk Management Framework, the Workplace Health & Safety Show 2020 offers a program covering a broad spectrum of WHS issues, challenges and solutions. The show will feature over 100 companies exhibiting, seminars, interactive forums and roundtable discussions to equip manufacturers with the WHS skills. The seminar portion of the show is split into two spotlight areas: “Talking Health” and “Talking Safety”. The Talking Health Attendees of the Workplace Health & Safety Show 2020 will have the opportunity to visit over 100 exhibitor stands.
Event organisers, International Exhibition & Conference Group, say they intend to “make it easy and efficient for industry professionals to have the broadest range of offerings under the one roof where they can compare, buy and stay updated on the latest policies.
The two day show will feature seminars, interactive forums and roundtable discussions.
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program focuses on Fatigue Prevention (presented by John Toomey), Wellbeing Anchors (presented by Samuel Eddy), and a range of sessions around mental health, predicting & preventing injury and reducing risk. The Talking Safety program covers topics around AI and automation, Fork Truck Safety, Prioritising Safety and Compliance. Exhibitors on the showground floor will showcase industry recognised services and solutions, including risk management technologies, creating a safer workplace with technology, hazard and risk reduction solutions, managing culture programs, as well as a range of safety, wellbeing, health products and resources. Three feature areas for the exhibition showcase include innovative products and services in height safety, materials handling and technology. Event organisers, International Exhibition & Conference Group, say they intend to “make it easy and efficient for industry professionals to have the broadest range of offerings under the one roof where they can compare, buy and stay updated on the latest products and policies.”
The show is part of a series of events that form the #SAFETYSCAPE initiative, founded by the Australian Institute of Health & Safety which is the peak body in Australia representing OHS safety professionals. The intention of #SAFETYSCAPE, according to the Australian Institute of Health & Safety, is to put safety into context within the broader industrial landscape; providing a destination where safety related ideas and insights can be shared, as well as made relevant to an audience beyond the health and safety community. “It’s a place where thinkers and doers from all corners of industry can connect, collaborate and innovate. This will provide a range of flow-on benefits, including building economy of scale, and cross- fertilising ideas.” The Workplace Health and Safety show will be held 2728 May 2020 at the Melbourne Convention & Exhibition Centre, and is free to attend. For more information and to register visit whsshow.com.au Manufacturers’ Monthly MARCH 2020 43
Awards Every year, the Endeavour Awards recognises excellence in the manufacturing industry.
Why BDO remains positive that Australian manufacturing will grow Manufacturer’s Monthly talks to sponsors of the Endeavour Awards’ newest category to find out what the business services firm knows about Excellence in Growth in the manufacturing sector.
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N highlighting the best in Australian manufacturing, there are a number of categories to choose from. “We’re in the business of growth,” said the national head of the manufacturing and wholesale industry team at BDO, Ryan Pollett, when explaining how the business services firm came up with the new “Excellence in Growth” category for the Endeavour Awards, alongside event organisers Prime Creative Media. Pollett mentioned that BDO has a background in helping businesses grow and is really passionate about this sector. “As a firm, we’ve been working with manufacturers in this country for several years and have been part of the growth story of 44 MARCH 2020 Manufacturers’ Monthly
manufacturing,” Pollett said. He explained that through what has been a “challenging period”, Australian manufacturers have shown resilience and they’ve come through the other side and are now doing well – which is something that BDO wants to highlight. “There are plenty of growth stories out there, and we’re really looking to celebrate them,” Pollett said. According to Pollett, there may be concerns about the health of the industry, but he stressed the importance of being optimistic and building momentum. “These industry issues are close to our heart and so, when we became aware of the awards and the opportunity to consider sponsoring them, as a firm it’s something we
leapt at, really,” said Pollett. BDO is a full solutions provider, whose services span audit, compliance, tax, financial management, sustainability, international trade, and technology solutions for a range of industries. “We can offer support in any way that a business might need it,” Pollett said. BDO sees itself as an organisation that advocates for growth and supports their clients in building practical strategies – be it on the tech advisory side, working with them in adopting Industry 4.0 technologies to suit their business, or mobilising their people. “We work with them on their journey and on their own growth story. For example, one of my clients has been going through a period of
growth, they’ve consolidated their hold in the industry and the next step for them has been to make some complementary acquisitions to be able to expand their product range, expand their customer base. So, we help with that,” Pollett said. “We help them identify targets and take them through the due diligence process on those acquisitions. They’ve now successfully completed a couple of those in the last two to three years and that’s really helped build their scale.” The company also does a lot regarding offshore-onshore trade, for example. They help clients with things such as customs, duty, and free trade agreements if clients have got an international trade business. manmonthly.com.au
Awards “There’s a lot that we can do on the global side of things,” Pollett said. While BDO provides services for many different industries, Pollett’s team entirely focuses on manufacturing, and their clients have contributed to their positive outlook on the sector. “We’ve got clients that have gone from relatively small family businesses, and they’ve grown all the way up to large-scale multinationals. And we’ve been there every step of the way to help them through.” Among the usual challenges Australian manufacturers face, including the scale of the country which makes it expensive to transport goods, BDO has seen a number of other challenges arise for their clients. “Innovation is very important
Innovation is very important and there are challenges around fostering innovation within this country. I think that we’re getting right to a large degree now, but there’s still room for improvement. and there are challenges around fostering innovation within this country. I think that we’re getting it right to a large degree now, but there’s still room for improvement. The tax incentives are not as good as they possibly could be in terms of R&D support. Having government collaborate with industry and universities is also a challenge – we see it as our role to act as an intermediary between those bodies,” Pollett said.
In keeping track of the industry’s success stories, BDO believes the key to success lies in the ability to move up the value chain. “For Australian business to thrive, the ones that we’re seeing do that are the ones that are focusing on their area of specialisation and the value-add, rather than mass manufacturing. It’s more likely that those offering customised, niche, and unique solutions to clients or solving customer
problems that survive.” While the firm recognises the challenges that have arisen in the sector, they remain positive about the future of manufacturing. “We’ve spent a long time working with these companies and trying to help them achieve their goals. We recognise it’s been an up and downtime over the years and there have been challenges along the way and there still are, but we’re advocates of the industry and we’re on board.” The Endeavour Awards will be held at Waterview in Bicentennial Park, Sydney on Thursday 14 May, 2020. Nominations for Excellence in Growth are now open. To submit a nomination, visit the Endeavour Awards website at https://endeavourawards.com.au/ nominate/
This year’s Endeavour Awards event will be held in Sydney on 14 May.
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Manufacturers’ Monthly MARCH 2020 45
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What’sNew
New innovation for BOGE Compressors BOGE has recently released their new C-2 series model oil injected screw compressors. Based on the very robust C and CL range these new models give customers a much greater variety of options to tailor a specific cost efficient solution for their business. The new BOGE C-2 range include a 11, 15, 18.5 and 22kW sizes with belt drive for fixed speed machines and direct drive for VSD machines. Options include base mount versions, integrated dryers or both of the above on a 500L air receiver. The advanced BOGE compact module provides increased free air delivery with minimum power consumption. This design is already well received and is considered to be one of the most robust small compressors on the market. The range now also includes a 22 kW machine with either fixed speed belt drive or direct drive VSD with integrated dryer and a full feature unit on a 500L air receiver. This model is a great space saving option for customers with limited space. The new BOGE C-2 models are compact, reliable with integrated design and small footprint. Manufactured in Germany by BOGE and marketed in Australia at a very competitive price. With this type of quality and innovation BOGE ensures the customer is the winner! Company: BOGE Compressors (Australia) Pty Ltd Phone: 03 5940 5913 Web: au.boge.com
Allplastics clear polycarbonate machine guards Employee safety is paramount in the workplace. Many industrial accidents can be prevented by providing machinery with proper guarding. Allplastics Engineering can provide, cut, fabricate and CNC rout a range of clear polycarbonate brands including Lexan, Makrolon, Palram, Safeguard and for a variety of industries such as food and beverage, material handling, mining, packaging and pharmaceuticals where operators need to see through the guards but should not risk their fingers and hands. It also helps on assembly lines where WHS regulations require processes or machinery to be guarded for the safety of workers. The SafeWork NSW states that guarding must be securely mounted. If access is required to parts of the plant during operation, maintenance or cleaning, the guarding should be an interlocked physical barrier that allows access when there is no risk – and prevents access at all other times. Polycarbonate is 250 times the strength of normal glass and half the weight of if it. Available from 1mm to 12.7mm thick, polycarbonate is virtually unbreakable and covered by a warranty from the manufacturer. This makes it the preferred choice of engineers when designing guards for machinery. In applications where the guards are constantly being cleaned and are subjected to constant wear Allplastics provides mar resistant grade polycarbonate which has a special coating on both sides of the clear polycarbonate to minimise guards and barriers being easily damaged or marked. Brands such as Lexan MR10 and Makrolon AR2 are available in thicknesses ranging from 3mm to 12.7mm. Allplastics can provide CNC routered shapes to match drawings or broken guards. The company’s experienced fabrication personnel can bend or construct chutes, guards, boxes or covers for a diverse range of applications. For situations such as curved lathe guards or surrounds Allplastics can supply thin gauge polycarbonate which can be cold bent and secured by a frame.
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In addition to clear polycarbonate guards Allplastics can also fabricate opal polycarbonate where visibility is more important than clarity or yellow high-density polyethylene for even higher visibility. Features: • Outstanding toughness; • Good chemical resistance to solvents and cleaners; • Good electrical insulation; • Outstanding weatherability; • Temperature: -40C° to 130C°. Sheet Sizes: • Size (mm): 2440 x 1220 and 2440 x 1830 ; • Thickness (mm):1 – 12. Company: Allplastics Phone: (02) 9417 6111 Web: www.allplastics.com.au
Manufacturers’ Monthly MARCH 2020 49
What’sNew OLI Vibrators VBS bin aerators The OLI range of bin aerators have been developed to assist in the eradication of some of the many problems associated with the storage, transportation and conveying of fine dry powders and granules in the food industry. All the OLI VBS aerators are constructed using a food grade silicone membrane with aluminium, nylon or food and pharmaceutical grade stainless steel stems according to the application. Often in silos and hoppers where any fine particle ingredients are stored, experience the problem of product bridging, ratholing and blocking thus creating a major concern to production downtime and often costly labour to clear, as well as wear and tear on the storage vessel. Within the OLI aerator range are low air consumption, no maintenance and compact aerators that keep the easily compacted powders or grains light and fluid by introducing very slight air and vibration so when the time comes to discharge from the silo or hopper the product flow is improved immensely creating time and labour savings. OLI can provide aerators where high temperatures are generated in continuous or discontinuous duty and have metal detectable properties where contamination is of the greatest concern. All the range is available in standard or micro size. The OLI aerators can be fitted in the vessel manufacturing process, at the time of empty out or a retrofit kit is also available for an easy fit option. OLI Vibrators have applied years of research and customer input into developing this premium European VBS aerator range that comes with local supply and after sales service and succeeds in satisfying the needs of food manufacturers, powder and grain transporters and anybody that looks for an effective and economical solution to a very common problem.
Company: OLI Vibrators Pty Ltd Phone: 03 9764 9988 Web: www.olivibra.com/au
New lubrication-free toothed belt axis igus has now developed an extra-compact toothed belt axis based on its flat drylin N linear system. Equipped with motor and control, the new system can carry loads of up to 20 Newton and a translation of 60mm per revolution. From the lubrication-free plain bearing and the maintenance-free linear guide up to the completely ready-to-install linear robot, igus develops solutions either as a single part or as a system. With the help of its linear construction kit, the motion plastics specialist has now developed the new cost-effective drylin ZLN toothed belt axis. Whether in vending machines, service robotics, or automation systems, the new compact toothed belt system can be installed quickly. The flat drylin N linear guide ensures compact construction, which is just 27mm high and 40mm wide. The toothed belt mounted on ball bearings enables high speed dynamics. Loads up to 20 Newton can be moved vertically at a ratio of 60mm per revolution. By using high-performance polymers in the sliding carriage, users can completely dispense with lubricants and thus the maintenance of the unit.
Plug in, install, low cost The new toothed belt axis for low cost automation consists of standard components from the drylin modular system that can be fitted together and assembled quickly. Thus, the new axis is not only lightweight due to the use of plastic components, but also cost-effective and delivered quickly. A completely ready-to-install drylin ZLN can be ordered with NEMA stepper motors or with EC/BLDC DC motors as well as a suitable dryve control system. The new, costeffective toothed belt axis can be delivered from Treotham in the desired size with a maximum length of up to 750mm in 24 hours. Company: Treotham Automation Pty Ltd Phone: 1300 65 75 64 Web: www.treotham.com.au
50 MARCH 2020 Manufacturers’ Monthly
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In-vehicle computer with supercapacitor-based power backup module Neousys has released the Nuvo-7250VTC Intel 9th/ 8th-Gen Core in-vehicle controller with 4x or 8x PoE+ Ports and supercapacitor-based power backup Module, which is available from local distributor Backplane Systems. It is a rugged in-vehicle controller that utilises Neousys’ innovative supercapacitor-based power backup solution. Powered by Intel 9th/ 8th-Gen Core processors with up to 8/6-core and 64GB DDR4 memory, it offers over 50 per cent performance increase over previous generations for versatile in-vehicle applications. This in-vehicle computer is equipped with supercapacitor technology to provide 2500 watt-second stored energy to sustain the system to safely shutdown during unforeseen power outages. It also has a variety of peripherals and connections. It has four or eight 802.3at PoE+ ports to supply 25W power to connected devices such as IP cameras with M12 (x-coded connectors) and connector screw-lock mechanisms on I/Os like Gigabit Ethernet, USB3.0 and USB3.1 to guarantee extreme rugged connectivity in shock and vibration environments. Internal expansion wise, it features two M.2 and three mini-PCIe sockets with corresponding wireless modules for 3G/ 4G, WIFI, GPS, and CAN module for wireless communication. Additionally, there is a 4G cellular module option that is certified to work with Australia telecommunications which can save implementation time and cost. The Nuvo-7250VTC also features isolated CAN bus for in-vehicle communication, isolated DIO for sensor/actuator control, 8-35V wide-range DC input with
ignition power control and complies with EN50155 railway certification. Coupled with supercapacitor power backup technology, the Nuvo-7250VTC offers data protection and is the perfect solution for various in-vehicle applications. Key features: • Supports Intel 9th/8th-gen core i7/i5/i3 LGA1151 socket-type CPU; • 4x or 8x 802.3at gigabit PoE+ ports via M12 or RJ45 connectors; • Onboard isolated CAN Bus for in-vehicle communication; • 4-CH isolated DI and 4-CH isolated DO; • 2x hot-swappable SATA HDD trays, supporting RAID 0/; • 2x M.2 B key and 3x full-size mini-PCIe sockets; • 8-35V wide-range DC input with built-in ignition power control; • Patented supercapacitor-based uninterruptible power backup; • E-Mark and EN50155 certificate. Company: Backplane Systems Technology Pty Ltd Phone: (02) 9457 6400 Web: www.backplane.com.au
Cost reduction through efficient energy-saving motors Nord Drivesystems recently launched a synchronous motor which boasts a significantly higher energy efficiency (IE5+). This motor can be supplied with or without a fan. It is also suitable for wash-down and intralogistics applications when incorporating a nsd tupH surface treatment. This latest generation permanent magnet synchronous motor has considerably lower energy losses than its predecessor, the IE4 series. The unventilated smooth motor achieves a high efficiency which, at times, proves to be more efficient via a wide torque range. It is optimally suitable for operation in a partial load range and the compact IE5+ motor offers a high-power density with less installation space required. The IE5+ series will initially be launched in a size for power ranges from 0.25 to 1.1 kW, with a continuous torque from 1.6 to 4.8 Nm and speeds from 0 to 2,100 min-1. The motor can be directly mounted according to NEMA or IEC. Nord will gradually extend this motor concept to include additional sizes and powers based on demand and customer requirements.
Max concludes saying that, an integrated encoder also forms part of the standard equipment. The new IE5+ motor can be combined with Nord gear units and drive electronics as a modular system and will be available from the second quarter of 2020. Company: Nord Drivesystems Pty Ltd Phone: 1300 006 673 Web: www.nord.com
A drive for hygienic requirements The IE5+ is ideal for hygiene sensitive and harsh environments because it is easy to clean and wash down and is corrosion resistant. A nsd tupH surface treatment and IP69K protection class is available as an option as well as an integrated mechanical brake. The nsd tupH surface treatment offered by Nord is an outstanding corrosion protection for gear units, smooth surfaced motors, frequency inverters and motor starters in wash-down optimised cast aluminium housings. The drives are easy to clean and largely resistant to acids and alkalis. It is even possible to use high-pressure cleaners or apply aggressive media. The fanless smooth surfaced motors prevent the spreading of germs and run very quietly.
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Manufacturers’ Monthly MARCH 2020 51
What’sNew SMC’s smart thermo-chillers for peace-of-mind this summer SMC’s smart range of thermo-chillers come in an array of sizes and deliver on precise and accurate temperature ranges for peace-of-mind. The company’s range of chillers offer proactive control, improved performance and are backed by world-class service. With things heating up in Australia and New Zealand, now is the perfect time to order a thermo-chiller for your plant. Industries making use of heat generating devices such as machine tooling, printing and packaging are at risk of high rejection rates, poor product quality and a lack of overall process reliability. In terms of how it works, the recirculating fluid of the chiller removes the heat from the customer’s device. The heat is then removed from the fluid by an air-cooled (or water-cooled) refrigeration circuit. The coolant temperature stability is ±0.1°C within a set temperature range. Correct temperature control is vital for productivity. When properly sized and selected, a thermo-chiller improves the quality of the final product, protects valuable process equipment, and reduces costs. SMC offers a variety of solutions ranging from our standard type to our basic types and our high-level type triple inverter type chillers that adapt to the variable heat and flow requirements, achieving substantial power savings of up to 53 per cent. Answering to the call for Industry 4.0 solutions, SMC’s range of thermo-chillers put the power in its customers hands. Thanks to proactive controls via a remote control, these units offer self-diagnosis readings so that customers can anticipate and easily manage any incidents.
• f eatures a metal panel and a stainless-steel panel can be selected on request; and • ambient temperature of 5 to 45°C.
Series HRR (rack mount) The temperature control device is mountable in a 19-inch rack, which is great for space savings: • temperature stability: ±0.1℃; • temperature range of 10 to 35°C; • c ooling capacity: 1.2/1.8/2.4/3.0 kW (60 Hz); • easy front access; and • e asy to operate without removing the unit from the rack. Add-ons such as flow switches, pressure switches, filters, fittings and tubing are also available to order. Company: SMC Corporation (Australia) Pty Ltd Phone: 1800 763 862 Web: www.smcworld.com
Environmentally resistant type: The HRS-R series • • • •
resistant to dusty environments or environments with water splashing; cooling capacity of up to 5000 W (60 Hz); IP54 rated; large capacity tank of 12L;
Express Air clamping system Punch changeovers on a traditional clamp can cause considerable down time, leading to decreased productivity. The Express Air clamping system for European-style press brake tooling seats and clamps in seconds with the push of a button. It offers front and back clamping so set-ups and changeovers are faster than ever. The Express Air clamping system is a sectionalised punch clamp powered by standard shop air. Each section seats and clamps punches securely to the front and back of the beam, either remotely with the touch of a button or manually with the flip of a switch. Clamp sections are hardened with Nitrex surface treatment to 70 HRC for increased strength and durability. Sectionalised clamping offers maximum flexibility as sections can be pushed together for a solid beam or separated with gaps for box bending. Clamps are interchangeable with most original equipment manufacturer (OEM) holders for gradual transition to air power using several holders or all at once with holders for the entire length of the beam. Adding a clamping system to your press brake can reduce setup and changeover time. Company: Sheetmetal Tooling Tech Phone: (02) 8004 7027 Web: www.tooltech.com.au
52 MARCH 2020 Manufacturers’ Monthly
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The Last Word
INNES WILLOX – Chief Executive, Ai Group
Moving past the challenges of 2018-2019 Australian businesses face an extremely challenging environment, locally and globally, as a new decade begins, according to Innes Willox.
O
FFICIAL data confirm that Australia’s economy slowed to a crawl in 2018-19, with weak growth in real GDP and domestic demand. Patchy results were evident across business activity, sales, profitability, investment and employment growth, with a notable slowing in nonmining industries. This pattern of uneven, patchy growth worsened into late 2019. Of even greater concern for the national outlook, so too did the recent trend toward weaker national productivity, which showed an outright fall in 2018-19. Ai Group’s latest annual survey of Australian CEOs’ business experiences and expectations (conducted through October and November 2019) reveals that CEOs are more pessimistic about business conditions as we head into a new decade. Our Business Prospects report for 2020 shows that, even before this summer’s devastating bushfires: • more CEOs were anticipating a deterioration in trading conditions in 2020 relative to 2019 than an improvement, with 40 per cent of CEOs expecting no material change in their business conditions in 2020 and 34 per cent expecting a deterioration, but only 26 per cent expect conditions to improve. This indicates 2020 will be the first “net negative” year for Australian business expectations since 2015, on a “net balance” basis (that is, more CEOs expecting a fall than a rise in general business conditions); • fewer CEOs were expecting an improvement in their own turnover, profit margins and productivity in 2020 than for any year since 2015; and • as we enter 2020 a smaller proportion of businesses plan to increase their spending on 54 MARCH 2020 Manufacturers’ Monthly
With challenging times looming, firm action is needed economically in Australia. capital investment and research and development, compared with the last two years. In part, this gloomier outlook stems from the disappointments of 2019. Though CEOs’ expectations for last year were modest, 2019 turned out even less favourably than anticipated for many businesses. A key concern has been the uncertainties in the global economy with the threats to trade and a retreat from international cooperation on the part of key countries. Locally, another set of barriers to domestic confidence and investment are the uncertainties surrounding major areas of domestic policy, including energy, greenhouse gas abatement and the revival of national productivity growth. Another layer of concern arises from the fragile state of domestic demand in Australia, with both household and business spending indicative of the slow growth of domestic incomes (outside of the mining sector) and the pervasive mood of caution in both the business and household sectors. The concerns CEOs hold for their businesses
remain centred on their customers in 2020, with 41 per cent of CEOs listing “lack of customer demand” as the top inhibitor to their business growth. While the economy continued to grow through 2019 – taking Australia into its 28th consecutive year without a recession – there is little appetite for celebration. The pace of growth is slow. Over the past year both unemployment and underemployment have trended higher, business investment remains weak and our national productivity performance has gone backwards. Concerns about the workforce remain prominent for CEOs in 2020, with 20 per cent listing skill shortages as their top inhibitor to growth (similar to 21 per cent in 2019), 11 per cent raising concerns about wage pressures and/or high wage growth and 8 per cent listing industrial relations flexibility as an inhibitor to their growth. Australia’s extraordinary bushfires have further weakened the outlook for 2020, with early estimates suggesting the damage and disruption of the bushfire
crisis (as of January 2020) are likely to shave at least a further 0.2 percentage points off national economic growth in each of Q4 of 2019 and Q1 of 2020. Considerable resources and effort will now need to be directed to recovering lost ground. The policy priorities for 2020 revolve around the need for concurrent action on three broad fronts: • The importance of maintaining the strong focus on bushfirerelated recovery, rebuilding and resilience. • The Australian government should act as soon as possible to promote business investment, both as a means of stimulating near-term activity and employment, and as part of a longer-term strategy to improve national productivity and incomes growth. • We must also lift Australia’s productivity. Action on this front is fundamental to improved material living standards as well as building broader prosperity and cohesion of our communities. Governments, business and the broader community must commit to developing the skills of Australia’s current and future workforce; lifting investment, business capabilities and innovation; and to addressing the many counterproductive regulatory barriers to business growth and job creation. While the immediate outlook for the economy is flat at best, we do have the opportunity to ensure our future economic prosperity with timely and multifaceted action to overcome substantial headwinds. It’s a challenge for governments, for business and for the broader community and it’s one we should rise to with confidence that we will emerge stronger. manmonthly.com.au