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36 What’s New
22 Industry Focus
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Behind the cover The concept of opportunity in the COVID-19 crisis may be unthinkable. With people getting stuck at home across the world due to the virus, video calls are the next best thing to connect to friends, family, customers and business partners. Zoom sits at the top of the pile of video apps in the market. Its reliability has been unparalleled in a market saturated with video conferencing apps. Its popularity has stemmed mainly from the fact that it is focused on the needs of the customers at the moment – catering to the changing dynamics of the social climate caused by the crisis. Karen Andrews, Minister for Science
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control for and Technology, Machine has recently Industrie 4.0ABC with TwinCAT spoken in an interview with radio about giving renewed focus to the local manufacturing sector during the current crisis – something welcome during challenging times. This could easily mean jobs and other opportunities. However, in the interview, she stressed on the need to be focused on local strengths and the essentials the country requires during this period. Much like Zoom, in this issue, we have some local stories that have been committed to the onshoring of manufacturing in this country. Read on to find out more.
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Comment
SYED SHAH – Managing Editor, Manufacturers’ Monthly
Complexity over cost
A
SSOCIATIONS and industry bodies have constantly urged the manufacturing community about focusing on their capacity to innovate in terms of complexity, rather than on cost. Since Australia is a high wage economy and cannot compete when it comes to mass production and the more cost-efficient labour that overseas countries may provide. It is a reality that the country has had face up to, has done. It has innovating, adopting Industry 4.0 technologies and concepts, embracing automation to speed up production and as a result, there was an improvement. Then along came COVID-19. The coming of the pandemic did bring about a big challenge to the economy and the manufacturing sector. Despite the Ai Group reporting a surge in last month’s PMI to 53.7 points, it does not speak for the entirety of the sector. Other segments are in the process of coping and regrouping with help from the state and federal governments. The Advanced Manufacturing Growth Centre (AMGC) has started a portal for manufacturers, which has gotten great responses so far,
6 MAY 2020 Manufacturers’ Monthly
who want to connect to the right people and departments across the country in the fight against COVID-19. Jens Goenemann, managing director of the AMGC said that by developing this portal, there will be a better understanding of the skills, supplies and capabilities that exist right now, and a potential to connect anyone who wants to contribute with the right government department or manufacturer. The portal leverages on the existing large network of manufacturers of the association. He mentioned that the manufacturing sector will play a significant role in Australia’s recovery as businesses continue to navigate challenges and he believes that the country will emerge from this crisis more “resilient, stronger, and more self-sufficient than ever before”. The calls for the government to increase its funding and current programs that support domestic manufacturing have not gone unheard. Across the country, state governments have pointed out that the country has the “call to action” it needs to drive the nation’s recovery during and after.
The government(s) are obliged to do their duty to support the businesses that have been affected during this period because by giving manufacturing a boost, it will ensure that the country has the essential supplies to manage the crisis. At the moment, there are a large portion of those essential supplies that are imported in. Having the productive capacity to stockpile those supplies and carry on, moving forward, will certainly be an economic and morale booster. But not forgetting, at the other end, there needs to be an obligation for those who have received the lifeline to return the investment to the country. The thought process that is put into potentially restructuring a business to provide the essentials during this time of need is critical, not only for the country, but also for self-survival. One example is South Australian packaging manufacturer, Detmold, which has begun making millions of surgical masks and respirators from its Adelaide factory to stop the spread of the coronavirus. The federal and South Australian governments reached an agreement with the company to produce 145 million masks – 100 million for the
National Medical Stockpile and 45 million for SA. During this time, the company has bolstered its staff capacity and will be employing up to an extra 160 staff in the coming months. In addition, they will invest more than $1 million in local supplies that will support other Australian businesses. What they are doing is to ensure that there is a steady supply stream of masks for the coming months which may prove to be critical in the fight against COVID-19. Forty-five million masks will go directly to South Australia through the SA government, and another 100 million will be distributed around Australia by the federal government. Minister for Industry, Science and Technology Karen Andrews has also been in the spotlight with the media about where the government stands with regards to its support of manufacturing and its strategy to ensure its self-sufficiency during this difficult period. She reiterated that all the governments have been supportive of any manufacturer that comes forward with a good plan to assist the economy during this period. These included Detmold and Victorian manufacturer, Grey Innovation, who have responded by producing additional personal protective equipment (PPEs). Andrews conceded that COVID-19 has proven to Australia that it was wrong to be totally reliant on supply chains from overseas, especially with essential goods like PPEs and pharmaceuticals. She said that supply chains need to be examined closely to help out the targeted local manufacturing base in addition to saying that it is not sustainable for the country to rely on foreign supply chains for these products. She said that the government needed to work with these companies more closely and see how they can pivot and produce these essentials in an effort to restructure the existing supply chains and be less reliant on overseas ones. Read more on this in our news segment in this issue.
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Comment
GEOFF CRITTENDEN – CEO, Weld Australia
The impact of COVID-19 on Australian manufacturing And, in the 1960s, Alcoa opened its first alumina refineries in Kwinana, Pinjarra and Wagerup. Throughout the 1950s and 1960s, Australian manufacturing was responsible for approximately 28 per cent of the GDP, and 28 per cent of all employment.
A decline in Australian manufacturing There is a commitment needed from state and federal governments to increase levels of local content for all procurement decisions in the country.
A
USTRALIA has a long, proud history of manufacturing throughout the 20th century. With the federation of Australia in 1901, customs barriers were eliminated between the states, so they could more easily trade with another. This saw the first wave of manufacturing expansion, particularly in Victoria and New South Wales. By 1913, manufacturing employment totalled at 328,000 and accounted for 13 per cent of GDP. During World War I, the Australian Government quickly realised that our economy was too reliant on imports; it was near impossible to source many products in wartime. As a result, Australia started to manufacture a range of products onshore during the war, from aspirin right through to chlorine. Our steel industry also experienced enormous growth. BHP opened a new steelwork in Newcastle in 1915, which generated huge profits due to the unprecedented demand for steel to build ships, ammunition and artillery. Australia quickly matured from a rural economy into a substantial manufacturing power. The 1920s marked the beginning of the car manufacturing boom in Australia. Both General Motors and Ford established factories across the nation, in Adelaide, Brisbane, Fremantle and Sydney. At the time, it was more cost effective for these American manufacturing
8 MAY 2020 Manufacturers’ Monthly
giants to assemble their cars using imported components, rather than import complete vehicles. By 1929, 440,000 people were employed in manufacturing, approximately 18 per cent of the total population. While car manufacturing took off, Australia also faced challenges in 1920s; the Great Depression impacted several of our industries, particularly heavy industrial manufacturing (such as tools and metal parts). To help industry stave off these challenges, the Australian Government applied tariffs to some imported goods, encouraging Australians to buy local. As a result, the Australian metalworks and heavy industrial manufacturing sectors expanded in the 1930s. BHP took over the Port Kembla steelworks. General Motors started building all-steel welded car bodies at its new plant in Melbourne. Rheem started manufacturing water heaters. The Commonwealth Aircraft Corporation opened their plant in Melbourne. When World War II hit in 1939, Australian manufacturing was poised to play an even greater role than it had during World War I. With imports scarce, local demand was high. And, Australian also became an important supplier of manufactured goods to the UK and the US. Australian manufacturing remained strong in the years immediately after World War II. For instance, Toyota opened up shop in the late 1950s.
By the 1970s, Australian manufacturing was in decline. Local manufacturers were unable to compete with imported goods. Imports were much cheaper than goods produced in Australia, which meant businesses and governments alike began to consistently off-shore their contracts for products and projects. Manufacturing saw its share of total employment fall from 25 per cent in 1970 to 19 per cent by 1980. Fast forward to today and, while manufacturing remains a vital part of the Australian economy, it is responsible for just five per cent of the GDP, and only 5.4 per cent of total employment. Arrium collapsed in 2016. Holden and Ford have closed their facilities. Australian manufacturing is dying. This slow and painful death is due, in part, to market forces: an extended period of unfavourably high exchange rates; the rapid rise of China as “the world’s factory”; increasing wage costs; a lack of skilled workers; and increases in local energy and other input costs. But it cannot all be blamed on market forces. Successive state and federal governments continue to off-shore manufacturing work that the local industry is more than equipped to handle. Take, for example, rail industry projects. As recently as 10 years ago, most rail vehicles were designed and manufactured here in Australia. Not anymore. The $2.43 billion contract for the new Intercity train fleet was sent off-shore by the New South Wales Government. Sydney’s Waratah trains have only 20 per cent local
content. Queensland’s new trains were fabricated in India, failed to meet Australian Standards for accessibility, and are now undergoing significant rework. And, while Victoria’s Metro Trains are manufactured locally, all the fabrication work is completed in China. And let’s not forget about the big corporates. Many, if not all, of the major mining companies off-shore their fabrication work. It was not so long ago that BHP awarded more than 20,000 tonnes of structural steel work for its $4.7bn South Flank project to an off-shore manufacturer. The $150bn investment by the federal government in the defence industry has revitalised many small-tomedium enterprises (SMEs) within the Australian manufacturing supply chain and brought in new investment from overseas. However, this is just a drop in the bucket; we need a much larger proportion of government spending to remain in Australia.
A global comparison Let’s compare Australia to the rest of the world. Manufacturing makes up about one per cent of the workforce in Germany, Japan, and Switzerland. Canada, whose economy otherwise is similar to ours, has 1.7 million manufacturing workers, compared to our 47,500. In Israel and Sweden, with far smaller populations, advanced manufacturing is thriving. South Korea – the 5th largest export economy in the world and the 6th most complex economy according to the Economic Complexity Index (ECI) – had a positive trade balance of $124bn in 2017. In comparison, Australia lags behind as the 20th largest export economy in the world and the 59th most complex economy. In 2017, Australia had a positive trade balance of just $44bn – just a third of that of South Korea’s. It is a matter of national pride to buy South Korean-made goods, from trains to cars to telephones. Imports manmonthly.com.au
and sales of products such as Germanmade cars and iPhones are some of the lowest in the world in South Korea. Why? Because every element of government and the South Korean people work together to support their local manufacturing industry. There is a real cultural and governmental focus on growing and protecting their local economy and developing their own strengths.
The impact of COVID-19 In the wake of the COVID-19 pandemic, it is becoming ever more obvious that the complete lack of support from state and federal governments and industry at all levels has had a possibly terminal impact on Australian manufacturing. This lack of support has weakened our ability to compete internationally and reduced our industry to the lowest common denominator: cost. This economic rationalist way of living, which delivers short-term savings, will not secure the future of our economy or manufacturing industry long-term. While hundreds of thousands of
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people are expected to lose their jobs as a result of the economic flow-on effect of COVID-19, the manufacturing industry continues to operate – quietly, under the radar – and to employ approximately 10 per cent of the population. The federal government has pledged $320bn, representing 16.4 per cent of annual GDP, to economic stimulus packages designed to bolster the economy in the wake of the COVID-19 pandemic. What if just a fraction of this $320 billion had been invested into the manufacturing industry over the last ten or 20 years? What if the federal government had invested in local manufacturing industries, instead of offshoring work – effectively investing in international economies? Before it collapsed, the car industry wanted just $300 million a year in government assistance – just 0.09 per cent of the COVID-19 stimulus package. This funding would have been shared across 120 tier one manufacturers and suppliers to keep their factories running and to keep
thousands of Australians in jobs. In return, each manufacturer would have invested three dollars for every one taxpayer dollar. If federal government had invested in Australian jobs, companies, and the manufacturing industry as a whole, our economy would be much better positioned to weather the impacts of COVID-19.
So then, what is the solution? Clearly, the COVID-19 pandemic is a disaster. But, let’s hope it offers a silver lining for manufacturing. Let’s hope it opens the politicians’ eyes to investing in the local Australian economy. We need a commitment from state and federal governments to increased levels of local content for all procurement decisions. We need the big corporates, like BHP, to award local contracts to local companies. The strength of the sovereign capability of Australia depends on Australians investing in Australia. It might be cheaper in the short-term to buy from Thailand, China, or South Korea, but all this does is weaken
our economy. If Australia is ever going to re-pay the $320bn stimulus package, we need to invest in our economy. We need to bring home the manufacture of goods such as cars, rail infrastructure, and solar power equipment. If we do this, local companies will then be in a position to invest in their own businesses, and to strengthen our manufacturing industry from within. Business innovation encourages the creation of strong and lasting new businesses and the creation of new and better jobs, which together support a move to higher living standards. Innovation investment by business is crucial to our ongoing prosperity. To secure the future of Australian manufacturing and re-pay the debt that COVID-19 will leave in its wake, we need determined action from our governments, industry leaders, and the general public to put Australia first. We need to foster a sense of social responsibility. We need Australians to support Australia.
Manufacturers’ Monthly MAY 2020 9
Comment
DAVID CHUTER – CEO and managing director, IMCRC
Manufacturing leadership in the face of uncertainty
W
HEN it comes to manufacturing leadership, resilience is a key theme we have been discussing at the Innovative Manufacturing Cooperative Research Centre (IMCRC) this year. Manufacturers, like most, now fear the uncertainty of 2020 and beyond. Just as Australia was recovering from the shock of this summer’s devastating bushfire season, the World Health Organization (WHO) declared COVID-19 a pandemic on 11 March 2020. The pandemic has had a huge impact on people’s lives and every aspect of the Australian economy. Even before then, COVID-19 was destabilising our workforce and supply chains. Due to our over-reliance on China and others for imports, manufacturers have simply not been shielded from significant negative impact and disruption. I want to be clear that while it might seem counterintuitive, there has never been a more important time for manufacturing in Australia, and it strikes me that there are three areas
that stand out. First, we continue to see an unprecedented interest from manufacturing businesses putting up their hands to help with design, manufacture and supply of critical healthcare items, which is to be applauded as long as it is well coordinated and able to provide good growth prospects for those businesses. This is the short game. Second, now is the time (and many for once may be “time rich”) to closely examine and rethink business models and adopt new approaches to manufacturing, technology, collaboration and innovation. Advances in digital technologies and new, collaborative business models enable manufacturers to navigate these challenging times and consider the actions needed to ensure their companies will not only survive but find ways to innovate and become more resilient in the new world of disruption and uncertainty. And third – the longer game – now is the time to consider what our sector
must look like (in the not too distant future) if we are to have the national capability and capacity to withstand disruptive times. We have clearly been found out – perhaps we did not realise what we could no longer manufacture (although I would argue those in the automotive industry knew what we were losing when we stopped making cars, particularly the deep capability within the supply chains) – and we cannot afford to be found out again. So, how can manufacturing leaders address these three key areas and build resilience and position their companies in this new world? Here are five suggestions to consider, several of which I learned in the automotive industry during the Global Financial Crisis (GFC), and which enabled us to successfully accelerate out of that crisis and take an Australian business to the world.
1. Recognise and protect your value drivers. In times of economic uncertainty and adversity, your intuition might tell
you to downsize your business and reduce your most expensive costs or assets. The better response, if you can, is to be counterintuitive. Be clear on how you create value for your customers, and how your assets, products, services and people fit into that. If your people – their ideas, know-how and potential – are your key value drivers, then it’s likely they are likely the ones who will help you come out the other side of adversity. Other than cash to remain solvent, for many businesses the most important assets are people, both within the business and within the broader ecosystem such as suppliers. If you have no other choice but to let people go, consider first whether supporting mechanisms can help (e.g. the Commonwealth’s JobKeeper program), and also how you could refocus and retarget the efforts of your existing people to chart a new direction for your business. For example, could an engineer lead an
In times of volatility, uncertainty, complexity and ambiguity, true leaders look for opportunities to strengthen their people, processes and supply chains.
10 MAY 2020 Manufacturers’ Monthly
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innovation program, or upskill in new technologies such as artificial intelligence, robotics and data analytics? Let your team know you are in the trenches with them and be transparent about when your plans and approach change. If your people have both an individual and shared sense of purpose, they are more likely to stay busy and motivated and focused on building the business in times of challenge and adversity – adding significant value.
2. Prioritise breakthroughs over continuous improvement. Right now, the acronym volatility, uncertainty, complexity and ambiguity (VUCA) is most apt. Ensuring your business is not only agile enough to respond to different circumstances but able to find opportunity in times of uncertainty is essential. For example, as mentioned above, many local manufacturers have stepped up to support Australia’s health sectors. Additive manufacturers have shifted their focus to design and 3D print masks and ventilator parts in response to Personal Protective Equipment (PPE) shortages. Distilleries across the country are adjusting their production processes to manufacture hand sanitisers. Continuous improvement is no longer enough for a business to survive during times of economic decline. What is needed is disruptive innovation and new ideas that create commercial breakthroughs. Take the opportunity, while productivity is slow, to learn new technologies, find new ideas and potentially discover new business solutions. Understand the difference between your business and your business model, invest in the latter and make sure it is both unique and competitive.
3. Collaborate on shared problems. If there is one silver lining during turbulent times – it’s that you are not in a world of your own. manmonthly.com.au
Technological, climate and health issues affect everyone in the manufacturing ecosystem, which, in turn, presents an opportunity to collaborate with universities, suppliers, customers and even competitors to solve shared problems. How can you collaborate? Work out who you could start a conversation with. Review, for example, your supply chain for potential partners. Consider working with a university or the CSIRO to discover breakthrough ideas that will prepare your business for a future that is likely to be more localised, more sustainable and more collaborative.
4. Mitigate risk through cofunding programmes. When cash flows are drying up, the natural reaction is to avoid investing in anything associated with risk, or perhaps anything at all. Government-led co-funding organisations are a great way to mitigate risk since they can provide you with the financial ability to work on innovative projects that you might not otherwise be able to justify in uncertain times. Support programs such as CRCs and Industry Growth Centres offer matched cash funding to help drive research and development and competitive initiatives. Working within these programs may present opportunities that your business may not have been able to access on your own. So, now is the time to explore these co-funding options, invest in manufacturing innovation and discover breakthrough ideas to help you accelerate your way out of disruption.
5. Build resiliency through local supply chains As the COVID-19 crisis has shown, Australia’s position as a net importer creates fragility for supply chains, especially when it comes to raw materials that cannot be transferred by air freight. Even if air freight is viable, the costs and delays of not
being able to transfer critical tools and components by sea can cause significant issues for manufacturers, and the cost of disruption may outweigh the costs saved through offshore sourcing. How can manufacturers manage risk and build resiliency around their supply chains? Perhaps the answer is to re-think the structure of your supply chains in Australia, away from being driven by the cost-benefit of buying from China and other markets, and towards collaborating with local suppliers. IMCRC participant UAP (Urban Art Projects) is a good example. UAP initially thought all of their custom manufacturing would need to be completed in China, but with changing global trade conditions in recent years together with investments in key enabling technologies, UAP discovered it was more costeffective to manufacture locally and, subsequently, has been able to upskill more local workers. As co-founder and managing director Matt Tobin told The Australian last year, robotics and innovation have allowed UAP to re-locate 32 per cent of its manufacturing from Shanghai to Brisbane over the past two years. There are many examples of this happening, but few are sufficiently publicised as a “peer to peer” incentive to others. As a CRC focused on innovative manufacturing, our mission has been to push manufacturers, especially SMEs, to think differently and embrace change in the face of digital disruption. In times of volatility, uncertainty, complexity and ambiguity, we know true leaders will look for opportunities to strengthen their people, processes and supply chains. You can do this by managing the concerns of your people with empathy. You can look intensely at how you can build resiliency through collaboration, break-through innovation and new business models. You can play both a short game and a long game. And in the face of uncertainty and crisis, you can find a new way to succeed.
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News @MM Resources exports on track to reach almost $300bn Resources and energy exports are on track to reach nearly $300 billion this financial year, $18bn more than the previous record despite the impact of the coronavirus. Some of Australia’s largest resources companies and industry groups together with the Australian government have united during over discussions on how to deal with the coronavirus outbreak. Resources, water and Northern Australia minister Keith Pitt said it was important for companies to prioritise workers’ health and safety and keep jobs to put the industry in a good position for recovery. “It’s critical that resources operations continue, and new projects commence as planned wherever possible and we are working with resources companies to ensure they can get workers in and out of regional and remote areas in accordance with health and
The government has committed to working with resources companies to ensure businesses continue to operate despite the COVID-19 situation. safety requirements,” he said. The government has committed to working with mining, oil and gas companies to ensure businesses continue to operate under changing circumstances. “The resources sector has already shown great resilience to be in such
a position of strength as we head into this current health crisis,” Pitt said. “It will be key to Australia’s economic recovery once the global COVID-19 pandemic has passed.” Round table participants included the Minerals Council of
Australia, Australian Petroleum Production and Exploration Association (APPEA), National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA), BHP, Rio Tinto, Newcrest, Woodside, Shell, Santos and Senex.
Renewed vigour needed for local manufacturing supply chains Minister for Industry, Science and Technology Karen Andrews has mentioned in an interview with a radio station that the government will be strengthening their investment towards the manufacturing sector and giving it more attention as part of the pandemic response. The COVID-19 crisis has brought renewed vigour to the calls to support Australian made products. The federal and state governments have been supportive of these with Australian manufacturers like Detmold and Grey Innovation responding by producing additional personal protective equipment (PPEs). Her comments come in the wake of a shortage of a number of essential goods which Australia has been traditionally reliant on like the PPEs. She mentioned that supply chains need to be examined closely to help out the targeted local manufacturing 12 MAY 2020 Manufacturers’ Monthly
base in addition to saying that it is not sustainable for the country to rely on foreign supply chains for these products. “I think what the coronavirus has proven to us is that it’s wrong for us to be totally reliant… on supply chains that come from overseas. “The issue has been, in some cases getting access to the input materials that they need – so that’s a problem and we need to make sure that we address that as well as making sure that we don’t just retain a strong manufacturing sector – but build it.” Andrews was mindful of the fact that in terms of cost, it would be hard to compete against overseas products, hence there is a need to play to the strengths that the local manufacturing markets are capable of. This is because of the access to raw materials and Australia’s high wage economy will create significant
hurdles for the industry in this respect. Following discussions with the local manufacturing sector last year, she said that “we have to start looking at what our niche areas are, where we have demonstrated capability, where we can build on that.” Locally produced pharmaceuticals,
as an example, was as important to produce in Australia because having ample stock is important. “We need to work with our pharmaceutical sector to see how they can pivot and how they can start producing different medicines, different pharmaceuticals if need be,” said Andrews.
Australia has been traditionally reliant on essential goods like PPEs which are manufactured overseas.
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News @MM Queensland rum distilleries to produce hand sanitiser Australia’s oldest distillery Beenleigh Rum and Bundaberg Rum will begin producing hand sanitisers for schools and frontline workers.
About 100,000 litres of ethanol, the key ingredient in hand sanitiser, enough to fill 500,000 bottles, will be supplied to the 100,000 litres of ethanol, the key ingredient in hand sanitiser, will be supplied to the Queensland government.
Queensland government. State development, manufacturing, infrastructure and planning minister Cameron Dick said the government was prepared to work with and support more manufacturers. “This is the time to think laterally and broadly about how you and your business can adapt and contribute to our state’s COVID-19 coronavirus response,” he said. “You might think it’s a long shot, but innovation is critical right now, and when it comes to manufacturing there’s no state more innovative than Queensland. “We are talking to manufacturers from right across Queensland who are willing and able to transition their production into essential health care supplies and other necessities.” Existing production lines and staff at both plants are focused on the immediate production for supply hospitals, schools, stores
and supermarkets. Managing director of Bickfords Group and owner of Beenleigh Distillery Angelo Kotses said the idea of producing hand sanitisers came from the need to keep their workers safe. “We originally planned a small run of only 1500 cartons, but when the Queensland Government approached us, we were more than happy to help by providing hand sanitiser for essential needs throughout the state,” he said. Managing director of Bundaberg Rum’s parent company Diageo Australia said the company had a duty to support the needs of the community. “At a time like this we will always step up and contribute when Australians need it most,” he said. The government will continue to identify issues in supply chains with manufacturers, suppliers and producers and investigate ways to keep businesses open.
NSW manufacturers to fill medical supply chain The New South Wales government has launched a portal for the state’s manufacturers who have offered to build parts or supply urgent items during the coronavirus period. The online platform aims to connect state-wide supply chains to provide more hand sanitiser, hand wash soap, gloves, cleaning supplies, protective clothing, masks, eyewear and paper products. Premier Gladys Berejiklian has urged more manufacturers to convert their production lines. “We have the ability within NSW to meet our local demand and the government is moving to help manufacturers re-tool quickly to achieve this,” she said. “Importantly, providing this opportunity to manufacturers will also allow some businesses to keep manmonthly.com.au
people in jobs when they may not have been able to do so.” Supply of Personal Protective Equipment (PPE) and disinfectant are expected to be in limited supply for at least 12 months.
Job investment, tourism and Western Sydney minister Stuart Ayres said manufacturers should view the coronavirus situation as an opportunity for businesses to diversify their supplies.
“We will work to find solutions to provide our hospitals and our people with the protection they need, while keeping as many workers as possible in a job,” he said.
NSW Premier Gladys Berejiklian has urged more manufacturers to convert their production lines.
Manufacturers’ Monthly MAY 2020 13
News@MM Movement of goods across borders must flow: Ai Group The Ai Group has urged governments to help reduce cross-border chaos for businesses involved in the movement of goods. Ai Group CEO Innes Willox told Radio National is it “essential” for governments to act to prevent the
economy from quick “atrophy”. “We have to have continuity around what is happening at our state borders to allow the movement of goods to occur,” he said. “It is essential to get this right. Businesses are totally confused at the
moment trying to figure out what they can and can’t do.” Willox believes there are a range of measures that governments can consider. “We’ve made it very clear to government that the assistance
The economy is interconnected, and it is crucial that bigger businesses have the support from the government that they need as well.
for small businesses is good at the moment and appropriate but it’s inevitable that that is going to extend in one way or another to bigger businesses so that they can keep their supply chains alive,” he said. “We’ve always said the economy is interconnected. It’s crucial that bigger businesses have the supports they need as well.” Ai Group has been in conversations with the Australian Council of Trade Unions around more flexibility to enable businesses to keep more employees at work. Measures around the movement of people and goods currently differ from state to state, with some allowing freight to pass, while others are let police officers decide what is essential. Assistance for local manufacturing should last three to six months to help companies stay in business,” Willox said. “It is essential that we have measures which are temporary – whether that be for six or twelve months – which are balanced to get us through this. And we are close to that so that cooperation is fantastic.”
CSL consortium to make plasma against coronavirus Australian biotech giant CSL has formed a consortium with Takeda Pharmaceutical Company to develop a potential plasma therapy to fight coronavirus. The alliance, which also brings together leading biomedical manufacturers Biotest, BPL Medical Technologies, LFB and Octapharma, will leverage expertise within each company to develop trials. CSL Behring’s executive vice president and head of research and development Bill Mezzanotte said the companies will collaborate with governments and pool together 14 MAY 2020 Manufacturers’ Monthly
Developing a hyperimmune will require plasma donation from many individuals who have fully recovered from COVID-19. industry resources to support activities such as clinical trials. “This effort aims to accelerate a reliable, scalable and sustainable option for caregivers to treat patients suffering from the impact of COVID-19,” he said.
Developing a hyperimmune will require plasma donation from many individuals who have fully recovered from COVID-19, and whose blood contains antibodies that can fight the novel coronavirus. The “convalescent” plasma, when
collected, would then be transported to manufacturing facilities for proprietary processing, including effective virus inactivation and removal processes, and then purified into the product. Takeda’s president of plasma business unit Julie Kim said a collective industry approach would bring a therapy to the market more quickly and also increase potential supplies. The consortium has invited companies and institutions working on plasma to join the alliance.
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News@MM Food stockpiling sees April PMI surge The Ai Group Performance of Manufacturing Index (PMI) has jumped 9.4 points to 53.7 after four months of contraction, led by shopper demand for food, personal care and other essential household goods. Local businesses that manufacture items such as processed food, toilet paper, cleaning products were recognised as key contributors to the overall improvement in PMI. Ai Group CEO Innes Willox said some domestic manufacturers were impacted by COVID-19 in “different ways”. “Some are stepping up to meet surges in purchasing from consumers, businesses and the health sector,” he said. “Others are finding that disrupted supply chains into export markets and from suppliers of inputs are reducing sales and stifling production. “Others are seeing sales dry up as their customers reduce orders to
Food and beverage manufacturing sector had reported a spike in sales, production and new orders in the past month. reflect their own demand and supply conditions.” Willox said the aggregate impact for the manufacturing sector in March saw a slight increase in production, strong growth in sales and employment and more new orders. Five of the seven activity indices in the PMI expanded in March, with a “clear divergence” between manufacturing sectors, according to
Ai Group statistics. This included consumption of food and other household manufactured goods, which led to increased sales figures, production, new orders, finished stocks, and deliveries. Food and beverage manufacturing sectors remained unchanged at 59 points and the chemicals industry increased by 1.2 points to 50.1 points. Both sectors reported a spike in sales, production and new orders,
while the other manufacturing sectors all contract during difficult trading periods. “With over 920,000 jobs at stake, and much of the sector critical to the supply of food, sanitisation and health needs and the infrastructure and supply chains that support them, every effort should be made to keep manufacturing businesses going for as long as they can operate safely,” Willox said.
Critical energy works need to continue: Energy Networks Australia Energy Networks Australia has said in a statement that energy networks in the country need to reassure their customers to know they are doing everything they can to keep the power on, gas flowing and the energy system safe and reliable. The statement also mentions that there is a need to continue critical maintenance to protect lives, prevent damage to properties and keep the power on for the future. Referred to as a planned outage, this critical preventive maintenance is needed to ensure customers continue to receive a reliable supply of energy. It means that the supply of electricity or gas will sometimes be temporarily interrupted so the work can be done safely and efficiently. Energy Networks Australia CEO, Andrew Dillon, said networks manmonthly.com.au
Energy networks are doing everything they can to minimise disruption while these urgent works are undertaken during the COVID-19 crisis. recognised planned outages caused inconvenience, particularly given the current crisis, but the work that was being undertaken was absolutely essential to ensure a safe and secure energy system. “We understand many customers are working from home during this
unprecedented COVID-19 pandemic, however, to ensure you are able to continue to have power for weeks to come, critical maintenance must continue,” Dillon said. “It is likely that restrictions relating to COVID-19 will continue for several months. Networks
are doing everything they can to minimise disruption while these urgent works are undertaken. “For some critical work, power will be disrupted for a few hours. This is designed to avoid potentially catastrophic faults that could cause long term outages and put customer safety at risk. “Please respect the crews performing these works, they are doing so to protect you and your families and ensure the safe and reliable supply of energy.” Dillon mentioned in the release that energy networks were taking steps to minimise disruptions and ensure critical infrastructure, such as hospitals, have secure supplies. “We ask for your patience as networks continue to carry out critical works,” Dillon said. Manufacturers’ Monthly MAY 2020 15
News@MM SA manufacturer to produce face masks against COVID-19 Detmold is the latest in a line of Australian companies rising up to the challenge of COVID-19.
A South Australian packaging manufacturer will begin making millions of surgical masks and respirators from its Adelaide factory to stop the spread of the coronavirus. The federal government and South Australian government have reached an agreement with Detmold Group to produce 145 million masks – 100 million for the National Medical Stockpile and 45 million for South Australia. The company will employ up to 16 MAY 2020 Manufacturers’ Monthly
an extra 160 staff in the coming months and will invest more than $1 million in local supplies that will support other Australian businesses. Industry, science and technology minister Karen Andrews said Detmold was the latest in a line of Australian companies rising up to the challenge of COVID-19. “This is a fantastic example of how our strong manufacturing base in Australia puts us in a position to be able to make more of the medical supplies we need during the
outbreak of this virus,” she said. “We have a sufficient supply of masks at the moment, but this work will ensure we sustain that supply over the months ahead. Forty-five million masks will go directly to the South Australia through the SA government, and another 100 million will be distributed around Australia by the federal government. “This new production line won’t be up and running overnight, that’s why we’re attacking this challenge
from all angles, including continuing work to secure further masks out there in the market,” Andrews said. “This agreement also shows the great collaboration on display between the different levels of government and we will continue to work with the states and territories to secure the supplies we need.” Australian textile and clothing manufacturers will also enter a round table discussion with the government about producing surgical gowns this week. manmonthly.com.au
News @MM Industry calls for continued manufacturing during COVID-19
Retaining employment, limiting business closures and containing the spread of coronavirus were cited as key priorities. The Australian Workers Union (AWU) and Ai Group have united to call for continued domestic manufacturing to support households, business, community organisations and health providers. In a joint statement, Ai Group CEO Innes Willox and AWU national secretary Daniel Walton said it was “crucial” that businesses, particularly in the food processing, packaging, pharmaceuticals,
chemicals and health industries, kept their operations running. Willox and Walton believed unemployment in the manufacturing sector should be a key consideration for limiting any economic activity. Both leaders said business closures would be “costly and hazardous”. “Many manufacturing businesses cannot be turned off and on with the flick of a switch,” the statement said.
“These extra costs and risks need to be weighed in any assessment of a shut down. If they can operate safely, they should remain open.” Both organisations welcomed extended social distancing measures and believed large parts of the economy could run without infringing the rules. “Businesses in metal production and fabrication, glass making, cement production, paper production, and
building products manufacturing – along with many other areas of manufacturing – can operate safely within social distancing guidelines,” the statement said. Retaining employment, limiting business closures and containing the spread of coronavirus were cited as key priorities, according to the statement. “History suggests unemployment rises much faster than it falls,” the statement said. “The costs of unemployment – both human and economic – last for many years beyond the passing of the economic downturn. Many people, particularly those who are older and less skilled, will never be re-employed.” More than 920,000 people are directly employed in Australia’s manufacturing sector.
The department of defence has announced the first Offshore Patrol Vessel (OPV) will be built in Western Australia as part of the federal government’s $90 billion Continuous Naval Shipbuilding Program. This will be the third of twelve Arafura class OPVs, and the first to be built at the Civmec shipyard in Henderson, Western Australia. Minister for Defence, Linda Reynolds said in the media release that this is the next step in the government’s naval shipbuilding program that will keep Australia safe and deliver jobs for a long time. “This government’s investment in Australia’s naval shipbuilding program demonstrates our commitment to strong border protection over greater distances than is currently possible, and our commitment in the local economy and creating more jobs for manmonthly.com.au
Australian workers,” Reynolds said. Minister for Defence Industry, Melissa Price said the OPV program is a key foundation in the government’s enhancement of Australia’s industrial skill base, growing both capacity and workers’ skills to build and maintain Australia’s sovereign maritime capability. “The Arafura program is creating jobs across the supply-chain, and I have heard first-hand from over 100 Aussie businesses about how they are benefiting from being an essential part of construction,” Price said. She also congratulated Luerssen, Civmec and their entire teams for “exceeding their commitment to Australian Industry Capability which is having substantial positive flow-on effects right across Australia” during the COVID-19 crisis that the country is going through.
The first two vessels are already under construction by Luerssen Australia and ASC in Adelaide.
The first two vessels are already under construction by Luerssen Australia and ASC in Adelaide. The remaining ten vessels will be constructed by Luerssen Australia and Civmec at Henderson in Western Australia under the SEA1180 OPV program. Luerssen Australia is the Prime Contractor working with key
Image credit: Department of Defence Australia
Construction commences for first OPV in WA
shipbuilding partners Civmec in Western Australia and ASC OPV Shipbuilder in South Australia to deliver the OPV capability for the Royal Australian Navy. The program will replace and improve upon the capability delivered by the Armidale Class and Cape Class Patrol Boats which entered service in 2005. Manufacturers’ Monthly MAY 2020 17
News @MM $70m on offer for renewable hydrogen The Australian Renewable Energy Agency (ARENA) has opened applications for $70 million for two or more large scale renewable hydrogen projects. The funding, first announced in November 2019, is looking to enable hydrogen to be produced in Australia from renewable energy sources at a competitive price, or “H2 under $2”. The funding hopes to spark the growth of a large-scale domestic hydrogen industry which could both reduce energy costs for Australian manufacturers if the hydrogen is sold locally, or provide a new market for Australian manufacturers, particularly those supplying the oil and gas industry. Producing hydrogen in Australia is one way that think tanks, such as Beyond Zero Emissions, see the resurgence of a globally competitive Australian manufacturing sector,
powered by cost-competitive renewable energy. The current round of funding goes beyond previous initiatives, said ARENA CEO, Darren Miller. “With this significant investment we expect to take the sector to the next level. We’ve supported a range of feasibility studies and pilot projects over the past two years, but
now we need to start the journey of producing hydrogen at scale,” he said. Proponents are invited to submit expressions of interest for projects with electrolysers of a minimum of 5MW capacity, and a preference for 10MW or larger. The projects must be powered by renewable electricity, whether directly or through power The funding hopes to spark the growth of a large-scale domestic hydrogen industry.
purchase agreements or large-scale generation certificates. With cheap, renewable hydrogen produced locally, Australian manufacturers of ammonia and other chemicals will be able to certify these products as renewable and sustainable. There is also the potential for hydrogen to replace other fuels in energy-intensive manufacturing processes, such as steel making. “Australia is well placed to become a major renewable hydrogen producer and exporter. We are blessed with some of the world’s best wind and solar resources, a large sparsely populated landmass, and as a major energy and resources exporter, we are already an experienced and trusted trading partner for countries like Japan and South Korea that will be the future hydrogen importers,” said Miller.
Chemical industry expands domestic production The Australian chemistry industry has expanded domestic manufacturing to meet demand for a range of products facing shortages. Chemistry Australia CEO Samantha Read said the sector manufactures and supplies raw materials and other products to 108 of 114 industries, which are crucial to supporting and preserving the health of Australians. “Many of our chemical manufacturers are being approached to adapt their manufacturing facilities to meet the unprecedented demand for a broad range of products, including sanitiser and PPE,” she said. “However, this additional capacity will be lost if they are forced to close under new rules. “It is vital that any new measures are coordinated and well-focused to increase and diversify critical manufacturing capability, not prevent it.” Inputs by the chemical industry include key materials for manufacturing medical equipment, 18 MAY 2020 Manufacturers’ Monthly
sanitisers, disinfectants and cleaning products. It also supplies and distributes and distributes water treatments and packaging that enable crop protection, fertilisers and irrigation.
“The industry is doing all it can to assist state and federal governments by leveraging capability,” Read said. “We ask governments to continue to engage with us and our members so that we can provide advice on the
implications of any new proposals.” The chemical industry, which is the third largest in Australia, has warned against shuttering the sector as new rules to prevent non-essential activity come into effect.
Chemical manufacturers are being approached to adapt their manufacturing facilities to meet the unprecedented demand for a broad range of products.
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News @MM ACCIONA to build 1026 MW wind farm in Queensland The windfarm will generate clean energy for up to 700,000 homes and eliminate three million tons of CO2 emissions a year.
Global renewable energy company ACCIONA has announced will build a $1.96 million wind farm in partnership with the Queensland government’s
clean energy generator CleanCo. The proposed MacIntyre complex project, due to begin construction in mid-2021, will be located about 50 km
south-west of Warwick and feature up to 180 turbines to generate 1,026 megawatts of clean electricity. The 36,000-ha site was selected for its exposure to consistent winds across land that has been used mostly for sheep farming, about 200 km south-west of Brisbane. Current farming activities will continue during the construction and operation phases of the wind farm. About 64 kilometres of transmission lines will connect the wind complex to the grid, which is expected to be in full operation by 2024. The MacIntyre complex, which will supply CleanCo with 400MW of power for ten years through a power purchase agreement, will become
one of the world’s largest onshore wind farms. It will be powered by German manufacturer Nordex Group’s latest Delta4000 turbines, each with a capacity of 5.7MW. The windfarm will generate clean energy for up to 700,000 homes and eliminate three million tons of CO2 emissions a year. ACCIONA will develop and own 926 megawatts, and a further 100 megawatts will be built and owned by CleanCo. Spanish company ACCIONA has developed wind farms in Australia since 2002, where it has powered more than 285,000 homes across Victoria, New South Wales and South Australia.
Commonwealth joins Vic gov in funding for ventilator manufacturing The federal government has joined its Victorian counterparts in supporting Australian manufacturers who are providing critical medical products. On April 9, federal Minister for Industry, Science and Technology, Karen Andrews, announced that Grey Innovation would receive $31.3 million from the Commonwealth to produce ventilators. This grant comes in addition to the $500,000 Grey Innovation had received from the Victorian government. Grey Innovation is leading a consortium of manufacturers to produce ventilators. The life-saving equipment enables those with COVID-19 symptoms that limit their ability to breathe. According to Andrews, Grey innovation will produce 2,000 of the ventilators. “This is another great example of Australian industry and the private sector working with our Government to ensure critical supply of medical equipment during the outbreak of this manmonthly.com.au
virus,” she said. The funding is the latest round of targeted support for the Australian manufacturing industry during the COVID-19 pandemic, which have encouraged collaboration across sectors to ensure that needed supplies are being produced locally. “This deal demonstrates the power of bringing Aussie manufacturers and clinicians together and is also a reflection of the highly advanced manufacturing capability that exists in our country,” said Andrews. “It also shows the incredible collaborative spirit that’s been on display as we respond to this unprecedented pandemic. Companies which are normally in competition are working together for the greater good.” According to Grey Innovation executive chair Jefferson Harcourt, the network of advanced manufacturers in Victoria has enabled businesses in the state to flexibly respond to changed needs.
“Victoria has the highest concentration of leading engineering and manufacturing companies in Australia, and as such, we are well placed to work together to build the Notus emergency invasive ventilators as quickly as possible,” Harcourt said. “We thank the Federal and
Victorian Governments and the Advanced Manufacturing Growth Centre for their support of the vision and rapid response to get the program under way, and are overwhelmed by the willingness of our industry colleagues to respond in this critical hour of need.”
The life-saving equipment enables those with COVID-19 symptoms that limit their ability to breathe.
Manufacturers’ Monthly MAY 2020 19
News @MM AMGC introduces portal to help manufacturers through COVID-19 The Advanced Manufacturing Growth Centre (AMGC) has introduced a portal for Australian manufacturers and component suppliers for supporting the national response to coronavirus. Currently, the portal has received more than 850 submissions from the industry to help the sector fight COVID-19 since their national portal launch. The portal aims to support Australian manufacturers with its online Manufacturing Academy learning portal to provide bespoke online webinars. State and federal government tenders and expressions of interest will be broadcast through the organisation’s website and social media platforms. AMGC managing director Jens Goennemann said Australian manufacturers want to assist but may be unsure of where to start. “By developing this portal, we will be able to gain a clear understanding of the skills, supplies and capabilities that exist right now, and potentially connect them with the right government department or manufacturer,” “Manufacturers are already putting their hand up saying ‘I could supply goods to support COVID-19 efforts, but I have some gaps in equipment,
The portal aims to support Australian manufacturers with its online Manufacturing Academy learning portal to provide bespoke online webinars. knowledge or processes’ – in some instances we’ve been able to assist in these linkages via AMGC’s expansive network.” Goennmann said the manufacturing sector will play a significant role in Australia’s recovery as businesses continue to navigate challenges. “Together, as a nation, we will emerge from this resilient, stronger, and more self-sufficient than ever before,” he said.
Current registrations ranged from broad manufacturing competencies to materials and skills sets. Goennemann said a number of manufacturers have already been identified and connected for their ability to play a role in pressing issues. “We will be sure to share these success stories when the outcomes are made public,” he said. “We are spreading the word of this national register. “The broad manufacturing network
has done us all proud with many federal and state agencies and other industry bodies sharing this portal widely.” AMGC continues to monitor portal content for surplus items that manufacturers may use in order to match supply and demand. The portal remains open for registrations to draw on industry expertise as the organisation works with government and the sector to identify needs and priorities.
2,700 Victorian small businesses to receive tax refunds Two thousand seven hundred Victorian small businesses will receive payroll tax refunds as part of the government’s $500 million Business Support Fund grants to support the state’s economy. The first portion of the funding will see the government put $52 million directly into the bank accounts of business owners. More than 21,000 small businesses 20 MAY 2020 Manufacturers’ Monthly
have been contacted about their refunds, with more than 30,000 employers who don’t pay payroll tax eligible for $10,000 grants. Premier Daniel Andrews said it was important for the government to act quickly to help businesses survive the impacts of coronavirus. “We’re getting money out the door and into the bank accounts of struggling businesses as quickly as
possible,” he said. More than $1.1 billion has been paid to businesses in the past week, which exceeded the target of $750 million in fast-tracked payments. “We’re making sure more Victorian businesses can access payroll tax refunds to help them weather this storm and get through to the other side,” treasurer Tim Pallas said. National Cabinet has announced
strict new quarantine measures to slow the spread of coronavirus, as most current Victorian cases of coronavirus were connected to returned overseas travellers. The government will continue to work closely with business, unions and in consultation with the Commonwealth to announce further support in the coming weeks and months. manmonthly.com.au
News @MM Government funding support for clean energy startups The Australian Renewable Energy Agency (ARENA) has announced $480,000 in funding over the next 12 months to start-up accelerator program, EnergyLab Australia, to support the Australian startup acceleration program designed to assist clean energy entrepreneurs. EnergyLab has four core programs: 1) Pre-Acceleration which is about helping entrepreneurs with an idea to test its commercial viability. 2) Acceleration – This is EnergyLab’s flagship program that helps the most promising energy startups launch a product into the market, secure first customers and raise a seed funding round. 3) Scale Up – This program provides late-stage energy startups with introductions to decision-makers at Australia’s most innovative energy utilities, mentorship from Australia’s most successful energy-sector founders, and advice from Australia’s most active energy-sector investors. 4) Women in Clean Energy Fellowship which is about equipping women interested in energy entrepreneurship with the skills, knowledge and support they need to start a company.
Recruitment of entrepreneurs and startups for the Scale Up program is underway now, with chosen applicants to be announced later in 2020. ARENA CEO Darren Miller said the project would help Australia’s brightest clean energy entrepreneurs turn their ideas into reality. “Startups and entrepreneurs play an important role in accelerating the uptake of clean energy solutions, however, they can also face challenges in reaching scale and aren’t equipped to overcome hurdles such as high
capital requirements, geographic constraints and revenue delay. EnergyLab, through mentoring and supporting startups, will help us to see an increase in expertise, skills and capacity in the renewable energy technology sector and identify pathways to commercialisation to keep Australia at the forefront of renewable energy innovation,” Miller said.
“ARENA’s support will enable us to do even more to support Australia’s leading clean energy entrepreneurs,” EnergyLab CEO James Tilbury said. “In particular, this funding allows us to launch a Scale Up Program to provide the best late-stage energy startups with the support they need to reach their full potential.” Since 2017, EnergyLab has supported over 80 Australian energy startups through its programs. This includes the innovative energy retailer Amber Electric that allows customers to reduce their energy costs via access to wholesale electricity prices. Amber Electric recently closed a $2.5 million funding round. Recruitment of entrepreneurs and startups for the Scale Up program is underway now, with chosen applicants to be announced later in 2020. EnergyLab is supported by a number of energy industry stakeholders such as Origin Energy, APA Group, Powerlink, The University of Technology Sydney, Ausnet Services, Climate-KIC, KPMG, Aperion Law, and the Clean Energy Finance Corporation.
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Network Systems Building the right game in industrial automation Justin Farrell from Siemens and Phil Newnes from APS Industrial discuss the recent trends in industrial automation technology and what it takes to move manufacturing businesses forward.
R
ECENT trends in automation technology have the potential to be gamechangers in the industrial sector, pushing forward productivity and efficiency and making processes more flexible and adaptable in realtime – all under the broad umbrella of “Industry 4.0”. Many decades ago, automation systems were built as standalone packages for specific applications, designed to function with proprietary software, and they had little to no ability to communicate with other systems. However, over the last 20-30 years, these traditional barriers have been gradually breaking down. Industrial networks, for example, have allowed highly disparate systems to be connected together, although this can be in a limited fashion. According to Justin Farrell, general manager of factory automation at Siemens Australia, a major change in the automation space is the increasing “openness” of more recent technologies and systems. “While over the last 20 years, communication barriers have been broken down and some data transfer between machines of different vendors has already been happening, it has until fairly recently been somewhat limited to simple commands, such as ‘stop/go’ and emergency safety functions or has required significant effort to build bespoke overarching systems that can be difficult to maintain,” explained Farrell. “Quite recently, however, new communication platforms and techniques are coming out that are really open. It means that, for example, a German-built machine and an American-built machine could be brought together with
22 MAY 2020 Manufacturers’ Monthly
an Australian built machine in Australia and communicate with each other using an open, vendoragnostic communications platform.” This is enabling detailed, highspeed communication. Effective communication in an industrial plant is, after all, now not just about being able to send information, but it is also about having close to real-time communication so that operational characteristics can be synchronised. Transparent and relatively easy to maintain these types of systems can evolve with an organisation’s requirements, they have the flexibility and scalability to ensure initial investment is not lost as things change.
The increased use of edge computing Putting data in the cloud or sending things to the cloud means companies can have easier decentralised sharing of data and global sharing of information. However, while there is much talk today around socalled “big data”, it is necessary for companies to be able to transmit data that is useful and valuable where and when it is needed. This is where “edge” computing comes in. Edge computing enables data storage and analysis closer to the devices and even on machines where it being gathered, lessening the potential for communication and connectivity problems and
With AI, robots are able to look at the parts and pick it up no matter what the orientation is – it is not limited by programmability, and that is a step beyond machine learning. “These are the changes that are happening right now,” said Farrell. “We now have much more open standards and the ability for different machines to effectively communicate together in a way that allows the operational characteristics of each individual plant to be optimised.” Cloud-based systems are now coming to the fore. Siemens’ MindSphere is among them. “Three years ago, MindSphere was at beginning stage, and over that three-year journey we have seen it go from what it could do to what it can do – the real-world applications of what industrial cloud is able to achieve for industry,” said Farrell.
reducing the need to process data in centralised cloud locations. Farrell explained edge computing by drawing on the analogy of smartphones. While smartphones are built with the primary purpose of being mobile phones, they also have the ability to access a sever and download apps that change the function of the device while retaining the original function at the same time. Over time, the phone’s connectivity makes it more useful as people develop new ideas about what it could be used for. Siemens is translating this idea into the industrial world with edge computing, releasing devices such as a human-machine interface (HMI),
which in the past meant an operator console, a visualisation of data about the machine. Now the company is building edge functionality into HMIs so that what companies buy today can be upgraded to something different or new or more advanced in the future as new functions are developed. It will become a standard to build edge into all new automation products. “Also, edge devices are able to work and make decisions with machine control systems, but they don’t necessarily have to be connected to a cloud or the internet to have proper functionality,” said Farrell. “This is because they have a local computing functionality as well as an ability to take information that has been analysed up to a cloud or a local server that is on the premises.” The value that can be gained from Industrial cloud systems is often dependent on the speed of the cloud and where it is located. Farrell explained that edge devices allow the user to control what data is being sent in an effective way and, also, connect to any number of clouds. This also enables for updates to systems and machinery to be carried out remotely in a safe and secure way. “A machine builder based in Australia who sends a machine to India, for example, may not have service engineers based in the latter. With edge devices, you could have that secure ability to connect and upgrade and update your machine functions from Australia without having to have anybody on the ground in India. And that is a real advantage,” Farrell explained. “Wholesale programming changes are usually difficult to do remotely without having a confident person onsite because if there is an error it could cause an unwanted result. With edge devices, you could have an manmonthly.com.au
Network Systems Effective communication in an industrial plant it is about having near real-time communication to achieve synchronisation of everyday operational characteristics.
app that you are working on that you can test locally, do all your testing in house with an app, and just add an enhancement to a machine via an app that is much more condensed and controlled than downloading, for example, a PLC program.”
Two distinct technologies that will power systems Two other major recent trends in automation technology are machine learning and artificial intelligence (AI). Farrell said that while these terms are often conflated, they refer to distinct technologies that need to be distinguished. Machine learning is based on a defined programmable system that utilises and learns from data produced in the course of operation. This data is fed back into the system, manmonthly.com.au
enabling it to adjust itself on the basis of a defined set of parameters. The benefit of machine learning is process optimisation. By contrast, AI comes to the fore when the number of parameters or variables in a process is too vast to be programmable. “A simple example of that is a conveyer belt where a random part is placed in random location in a random orientation on a conveyer belt, and you want to pick it up with a robot,” said Farrell. Traditionally, robots are programmed to be able to carry out a procedure in a defined number of ways. If a task falls outside of the set parameters, the robot will be unable to successfully perform the action or task. “With AI, robots are able to look
at the parts and pick it up no matter what the orientation is – it is not limited by programmability, and that is a step beyond machine learning,” Farrell explained. An example of where this could be extremely effective is baggage handling at airports, where today baggage handling is done manually. “Because every bag is different – the orientation of each bag is different, some bags will be on top of each other, some are hard, some are soft – there are so many variables in the baggage coming off an aircraft that it requires a human worker to unload it. Further, large airports the large number of bags coming through every hour is a constraint on how much throughput the airport can have,” said Farrell. “AI-enabled robots would be
able to handle those bags in all their different combinations, variations and permutations quickly and efficiently. This could be a real benefit for occupation health and safety, alleviating the manual handling risk of heavy and or awkward to lift bags whilst also allowing for increased baggage through put.”
What the future holds According to Farrell, the effective adoption of the Industry 4.0 technologies will require a change of mindset. This is a point echoed by Phil Newnes, APS Industrial communications manager. “It is a really big shift in mindset for the industry – and it can a bit of a nervous step if you are taking the first one,” Newnes said. Manufacturers’ Monthly MAY 2020 23
Network Systems Indeed, the partnership between APS Industrial and Siemens is focused on helping Australian companies adapt to the shifts in automation technology. “One of the points we try to get across is that you don’t have to be an expert to get on board with these developments. Siemens is leading the way with Industry 4.0 – they are walking the walk,” said Newnes. “You don’t have to be an expert to take advantage of all of this because Siemens will guide you through that journey. As a business, as long as you expressed a want or desire to get on this journey and make a start, you just need to engage with the experts that can help you get your business on the path.” Farrell said that the goal of addressing the particular needs of companies in Australia by drawing on local knowledge and expertise was one of the driving forces in the collaboration between Siemens and APS Industrial. “The only way that we can address the needs of the different
industrial markets is to work with partners that have expertise in these areas. There is a whole lot of great expertise available in Australia to help companies achieve what they need to achieve,” Farrell said. “It is through partnerships, like the one we have with APS, through that network of expertise, that we can solve the problems and achieve the solutions for our customers. It is a real community.” Farrell said that newer automation technologies, while complex, can be made simple, accessible and usable for nonspecialists. “Machine learning, for instance, is rapidly becoming quite simple. There is extremely complex programming behind the scenes, but this same programming allows for simplicity when it is configurable by an easy-to-use interface in the front end that can be used by people without highly specialised skills and knowledge,” he said. And the introduction of edge computing doesn’t have to be difficult either. In fact, Siemens is
releasing products that have edge capability already built in. All of Siemens’ HMI panels, for example, will have edge capability as standard straight out of the factory. They can carry out all the normal functions of an HMI panel, but they are also future-ready. “That takes the risk away, as it lowers the risk of investment – you are already making that further investment in the future – and if you want to use it in the future, it is available,” said Farrell. According to Newnes, it is now easier than ever before for Australian companies to get hold of cuttingedge industrial technology. “This is something that APS and Siemens are helping with. Our partnership is not yet two years old, but there is a real passion and energy in both companies,” Newnes said. “It is not only exciting for us, but it can only be a good thing for Australian industry as well, because the more that these technologies get adopted, the better our industry will perform.” Farrell agreed. “For Siemens, the reason why we have chosen to
go with a master distribution setup is our commitment to the concept of partnering for success. We recognise that we need to partner with a business that can provide the touchpoints and reach into the market with our product portfolio. People still want to do business with people. Despite all the information that is available online, we need to connect physically and personally with our customer base. APS is enabling us to do that,” he said. “Digitalisation has been very challenging to many businesses, small and large. But it is happening around us and companies need to adapt and change to get on board. We are surrounded by countries and regions that are well advanced in digital technologies and digital solutions. It has been happening in Europe for quite some time, and it is now happening rapidly across Asia, especially China. Australia has a lot of great talent, a lot of great minds with extensive knowledge. But I firmly believe we need to embrace these technologies so that we can be truly competitive on the world stage.”
APS and Siemens are helping Australian companies to get hold of cutting-edge industrial technology to improve their bottom-line.
24 MAY 2020 Manufacturers’ Monthly
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Factory floor robots Rugged solutions call for robust technological architectures, which require their components get designed for durability, resilience, and longevity.
High-Performance Connectivity in Robotics Paul Golata, senior technology specialist at Mouser Electronics discusses considerations when designing robotics for industrial or commercial purposes.
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UCCESSFUL robotics connectivity only happens by design. Intricate and delicate electronic systems must work to monitor, control, and adjust robotic performance through realtime adjustments. When it is welldesigned, the result is a reliable high-performance network of machine systems working to keep industry moving. This article explores some of the critical design aspects that engineers should consider when designing for either industrial or commercial robotic applications. By taking into account the generally rigorous and harsh demands of industrial robotic systems, one soon realises that in many applications that require reliable solutions under the most extreme conditions, specially designed industrial products from TE 26 MAY 2020 Manufacturers’ Monthly
Connectivity (TE), a leader in harsh environment connectivity and sensing applications, are best suited for the task (Figure 1).
Lasting Endurance TE endeavours to provide products that are compact, rugged, and reliable. Rugged solutions call for robust technological architectures, which require their components get designed for durability, resilience, and longevity. To this end, TE designs with these factors in mind. By analysing what types of environmental stresses these components must withstand and factoring in the time duration of these stresses with equipment life cycles yield, one obtains an expectation of the high-performance requirements needed. TE generates test criteria to help ensure that any production items
will survive and perform in the field to meet stringent expectations. With TE’s portfolio of connectors, sensors, and more, designers can put more data, power, and signal into their industrial robotic systems.
Protection and Durability Protection and durability are built-in by design. As a leading provider of connectivity products, TE has the technologies, operations, and a longstanding reputation that ensures designers can trust their robotics connectivity to them. TE understands the industry’s need for reliable connectivity that delivers greater simplicity, efficiency, and uptime. This is why TE’s communications and networking solutions are geared to the most demanding requirements of manufacturers worldwide as they approach the Internet of Things (IoT).
Networked manufacturing enables seamless communication as well as higher speed and efficiency. TE manufactures industrial sensors with the packaging to support harsh environments, low-current consumption, and a variety of measurement types to enable the growth of Industry 4.0. In addition to data transfer on the factory floor, TE designs its products to share information throughout the entire production environment – beyond the industrial setting and onto desktops. TE works with engineers to push the boundaries of efficiency and productivity – enabling simpler, faster, and more economic industrial communications.
Rugged Environments Industrial products are built to withstand rugged environments, manmonthly.com.au
Factory floor robots
Figure 1: Automation robot arm machines in an intelligent industrial factory rely on successful robotics connectivity design. (Source: Mouser Electronics).
Figure 2: TE Connectivity’s Intercontec Connectors deliver a highly reliable, customised solution for power, signal, and data transmissions in rugged environments. (Source: Mouser Electronics).
including moisture and contaminates. By addressing designs to fulfil Ingress Protection (IP) and National Electrical Manufacturers Association (NEMA) codes, TE delivers products that prevent the ingress of water and foreign objects (e.g., dust or fibres), as well as corrosive agents and various gases and atmospheres. Exceptional cold wreaks havoc on parts, causing them to be brittle and stiff. Failure rates increase as the potential for physical damage, through cracking or other introductions of physical defects, rise. TE Connectivity’s Intercontec Connectors can sustain operation in temperatures down to -20°C and up to 130°C (Figure 2). They also provide IP66/67 protection when connected. Overall, these connectors are designed for use in a wide variety of applications, including robotics, drive manmonthly.com.au
systems, mechanical engineering, automation mechatronics, medical/ chemical engineering, packaging and printing, and aerospace. Industrial and robotic equipment are often subjected to some of the most extreme forms of vibration. Relative movement stemming from an aggressive and highly dynamic motion profile may push connector systems to their limits. TE offers products designed to specifically minimise relative movements and ensure long-lasting and reliably stable connections. Parts and systems are designed to withstand high g-forces in various axes to endure the ongoing and continuous physical jarring and shaking, rendering them tenacious and essentially indefatigable. TE Connectivity’s Dynamic Series Ruggedized Connectors meet the
rigorous demands emanating from high-vibration applications (Figure 3).
Reliable Connections Made Easy
High-cycle count connectors mean they can engage and disengage often without degradation. Therefore, high-cycle count connectors indicate that the connector design is durable because no electrical or mechanical defects are expected to occur as a result of repeated distinct connecting. TE’s temperature sensors, along with their high-voltage contactors, provide the ability for highperformance industrial operation. TE’s separable connectors transmit power to equipment where it is needed. TE provides hook-up wiring and multicore cables that deliver the power and signals required to communicate in today’s connected world.
Polarised connectors or mechanically keyed connectors significantly aid in the connector mating process by helping to prevent mismating, guaranteeing positive alignment and proper connection primarily when the connector is located in hard to reach places or in instances when a blind connection might be required. Polarised connectors help eliminate unwanted connections from occurring. In an associated manner, modular connectors provide flexible and quick adaption to the requirements of the application.
Conclusion
Figure 3: TE Connectivity’s Dynamic Series Ruggedized Connectors offer robust connector solutions for demanding applications in challenging environments. (Source: Mouser Electronics).
Industrial products from TE are specially designed for endurance, protection, durability, environmental rigor, wide operating temperatures, vibration immunity, high-cycle count connectivity, and easy mating. TE Connectivity industrial solutions work to ensure successful robotics connectivity design for every highperformance industrial application. Delivering more data, power, and signal into industrial robotic systems produce more exceptional results that will have robots and their human overlords smiling. Reprinted with permission from Mouser Electronics: www.mouser.com Manufacturers’ Monthly MAY 2020 27
Manufacturing Strategies Cobots to help Australian businesses adapt Use of collaborative robots (cobots) are forecasted to grow in Australia. Manufacturers’ Monthly spoke to Universal Robots about how automation will improve production lines.
UR has found that humans and robots working side by side has resulted in higher efficiency gains for manufacturers.
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N Australia, cobots have traditionally found their largest markets in food and beverage and general manufacturing. Human workers and cobots have worked side by side for duties such as machine tending, palletising, box filling and work assist for heavy payloads. Universal Robots (UR) has recently also become heavily involved in the Australian pharmaceutical industry, where combining “the best of the human and the best of the robot” to improve efficiency has been a key business focus. In 2019, UR grew six per cent, while growth for the global robotics industry flatlined, according to UR head of Southeast Asia and Oceania Darrell Adams. “Australia last year actually saw a larger growth in percentage terms than UR as a company did,” he said. Adams said cobots will form a significant increase in automation, 28 MAY 2020 Manufacturers’ Monthly
where the COVID-19 pandemic has driven Australian manufacturers to adapt their production lines. “We see ongoing growth in Australia, and we have high expectations for Australia in terms of what we expect to see for the next few years,” he said. He also notes that there has been a “strong uptick” in automation for the domestic market even prior to COVID-19, even though the movement has been slow when compared to surrounding regions, Australia has seen a strong and steady growth. “Asia’s uptake of robotics and automation is significantly stronger than what we’ve seen in Australia,” he said. “I find that quite interesting given a few things.” “The cost of labour in Australia being a driver, traditionally, around robotics, is much higher than the other regions we see in Southeast Asia.”
Cobots in Australian manufacturing UR’s overseas success with global healthcare company Sanofi in France, which has improved timeliness and cost, has been replicated in Australia. Sanofi has made use of UR’s technology to achieve results such as reducing repetitive strain injury, taking people out of dirty dull and dangerous locations, and allowing humans to work right beside robots in a way that decreases weight and stress. “We actually have a company in Australia that is very similar to Sanofi in terms of what they’re doing and have seen similar results in terms of the efficiency gains,” Adams said. “The replication of this is actually very simple for end users. What Sanofi has done is not exceptional.” The benefits of having humans and robots working side by side is that it gives a much larger efficiency
gain than traditional robots alone, according to Adams. He believes the success of UR in Australia is mainly driven by the high number of small to medium enterprises (SMEs), which makes up a large part of the company’s key clientele. UR recently helped an Australian pharmaceutical producer change their production line from bottling face cream to manufacturing hand sanitiser. “UR’s ease of use is what helped drive that because you can make those changes very quickly without having to make major changes to the programming of the robot,” Adams said. The company has also achieved “high cut-through” with large pharmaceutical companies, where cobots played a role in fulfilling regulation requirements. “Having a robot deal with product that is restricted access makes life a lot simpler,” Adams said. “You don’t have to have a watcher watching the watcher watching the watcher, which is literally what you’re dealing with in pharma when you’re dealing with restricted access.” UR’s clean room certified robots work in environments within the pharmaceutical, electronics and food and beverage industries.
“We meet a number of standards around clean room environments which gives us the capability to work in those environments without the contamination,” Adams said. “That’s certainly a benefit to UR over any of the other collaborative robot brands that are out there, but in terms of those environments, we’re actually quite prevalent.” For example, a recent blood testing solution has by the company has provided added benefits of protecting humans against risk of infection, while keeping blood samples clean. The COVID-19 pandemic has provided opportunities for cobots to assist Australian manufacturers through difficult times and continue to meet market expectations. UR cobots run on a standard power outlet, and are light compared to traditional robots. They are also very cost effective and more affordable than people may think. “One of the primary drivers for the uptake of collaborative robots is that we’re very easy to program and very easy to reprogram and move,” Adams said. “What it allows you to do is react to very quick market fluctuations and hence keep your employees working and keep your business functioning.”
Sanofi has made use of UR’s technology for activities such as palletising to reduce repetitive strain injury for workers.
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Storage Systems Simple, modular storage solutions key to longevity Simple and modular storage solutions are the way to go to benefit businesses in the long run, BAC Systems director Robert Griffin tells Manufacturers’ Monthly.
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OR more than 40 years, BAC Systems has helped businesses and homes around Australia save space with high-density drawers. Its drawers can be found in places like factories, universities, and car repair garages all over the country. BAC Systems director, Robert Griffin, is quite experienced at the concept of configuring storage in three dimensions to help customers save space while allowing them to specify storage to suit their inventory. “The basic concept hasn’t changed because it’s a very sound concept,” he said. “Because it’s electronically operated or automatic, there’s very little that can go wrong with it. It’s a very reliable system.” Griffin said the key to a successful part store was to have as few moving parts as possible, while balancing it off with compressing the maximum amount of stock. “Specifically, with drawers, you The company has found that high density storage remains a constant factor that keeps the them in good business.
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The key to a successful part store was to have as few moving parts as possible, while balancing it off with compressing the maximum amount of stock. can pick the drawer height, and within that drawer, you can adjust your partitions and dividers left to right, back to front, so your storage location can be set up to exactly fit your inventory,” he said. The conservative load ratings on the drawers means they do not wear down from general use for decades, according to Griffin. “You can often run the same set of bearings for decades,” he said. “Your
business has to keep running, and so simple and passive solutions is the way to go to form a reliable store.” Manufacturing and engineering are the largest industry, followed by Defence, mining and the automotive industry, make up the company’s largest top industry clients. BAC Systems has refined the design of the drawers to suit harsh, dusty environments such as mine sites. “In these scenarios, you find that once you’re inside the part store, the dust will be drawn into a cabinet and will settle, it likes to settle downwards vertically,” Griffin explained. “It doesn’t go up so much, it doesn’t sideways, it settles downwards. The majority of the dust, found on a part, comes from above.” The latest design features a dust shield embedded in cabinets that covers all drawers so that dust exposure to settling dust is prevented. Griffin believes any industrial or commercial company that needs to store small parts or tools of any kind will benefit from the drawers. One of BAC System’s largest sectors is the mining industry, which the company has serviced across Australia and New Zealand. Griffin has personally viewed results from the company’s own cabinets that have been out in the field for years, which have remained relatively dust free compared to shelves surveyed in other sites.
“We’ve gone into part stores to survey their equipment and you’ve got the whole place decked out with shelves,” he said. “Now, the parts are caked in dust. You’re trying to measure up parts to work out the configurations for your drawers, and your hands are black after five minutes. It’s a really effective system, sounds simple, but really very effective in stopping the dust from settling on the parts.” Over time, the company has found that high density storage remains a constant factor that keeps them in good business. “High density storage has good side effects like cleanliness, but the main benefit is to compress that inventory right down to the smallest possible footprint,” Griffin explained. “A drawer cabinet only requires a third of the footprint as the equivalent of parts being stored on a shelving system. The drawers offer the benefits of keeping your parts clean, keep dust off them, keeping UV light off things.” He is keen on “getting it right” when it comes to helping customers save space and realise the benefits of an extra dimension to reduce costs. “Practical people understand it straight away,” he said. “Sometimes some people struggle to understand what the point is. They’re happy to throw in generic shelving and think she’ll be right, but it’s kind of a careless way to approach storage.” Manufacturers’ Monthly MAY 2020 29
Manufacturing Excellence Investing to support Australian manufacturers Bosch expands factory automation business in Australia with a new proposed $17 million facility to be constructed at the Bosch Clayton campus that will see more than 30 new jobs to be created. Manufacturers’ Monthly explains.
Upon completion, the new Bosch building brings with it a commitment to create at least 35 new jobs over the next four years.
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N February this year, the construction of a new facility for Bosch’s Manufacturing Solutions and Rexroth businesses began. The company will invest $17million on the new facility. On completion, this will see the end of a five-year project to consolidate all of Bosch’s Victorian businesses to its 12-hectare Clayton campus. Bosch’s Manufacturing Solutions division began as a growth initiative, and to redeploy highly skilled employees being impacted by the decline of the Australian automotive industry, to new endeavours. Applying more than 40 years of experience in designing and building automation equipment and special purpose machines for Bosch factories in Australia and abroad, the division has established itself as a trusted supplier to the Australian manufacturing sector, as well as international customers. Five years on, Bosch’s Manufacturing Solutions division services a diverse array of blue chip, mid-tier and early stage 30 MAY 2020 Manufacturers’ Monthly
manufacturing companies as customers. Peter Tyroller, member of the board of management of the Bosch Group responsible for Asia Pacific, who was at the commemorative soil-turning event mentioned that he was delighted that Bosch’s Australian team is playing such an important role in securing the future of manufacturing in this country. “What we are doing here is quite unique within the Bosch Group,” Tyroller said. Bosch’s history of manufacturing at this site dates back to the 1950s, when it established a plant to support a growing local automotive manufacturing industry. The ensuing decades of production and engineering saw automotive customers come to depend on Bosch Australia’s expertise for the supply of quality components for local assembly. However, as the volume of locally produced cars sharply declined the local Bosch manufacturing activities
had to be restructured. “It was a very difficult time. For most of the team supporting our manufacturing operations there really was no future. Then we realised, the capability we had in-house could easily be redirected externally. We gave them time and freedom to see what they could make of it, and now they are flying,” Gavin Smith, president of Bosch Australia, said. Today, the Manufacturing Solutions team has done much more than just survive. They are now supplying complex turnkey solutions to the medical technology, food and beverage, and advanced manufacturing industries. “Manufacturing is very much alive in Australia, and we are excited to be at the forefront of it,” said Smith. “For well over 100 years, Bosch has been at the forefront of manufacturing. Bosch’s commitment to Australia reinforces this country’s importance as a global manufacturing hub, underpinned by innovative organisations and a skilled
workforce,” Jens Goennemann, managing director of the Advanced Manufacturing Growth Centre, said. The new building will comprise 4,156 sqm of industrial space and workshops, 896 sqm of offices, amenities and laboratories, and a further 833 sqm for truck and service areas, as well as 74 additional car parking spaces. With the support of the Victorian Government, the new building brings with it a commitment to create at least 35 new jobs over the next four years. Furthermore, Bosch Australia will continue to work towards its 2020 carbon neutrality goal by constructing fully insulated, temperature efficient workshops, and installing 1,125 solar panels on the roof of the new building. The 500kW of peak solar power they generate will help to supply approximately 10 per cent of the power consumed at the Clayton site. Construction of the new facility is expected to be completed by October 2020. manmonthly.com.au
Lubricants Keeping plant operations slick with multipoint solution The most common cause of bearing failure in an industrial plant is improper lubrication. Which is why a multipoint lubrication system is recommended, particularly for large operations such as those typical in the building material manufacturing sector, says lubrication expert Mandar Shivalkar.
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HE key point to understand is that over-lubrication can be just as damaging – if not more so – than inadequate lubrication. And we know that 35-40 per cent of bearing failure is due to incorrect lubrication,” explained Shivalkar, who is the national product manager of Lubricators and Level Monitoring Systems with Alemlube. “Having a reliable multipoint lubrication system will resolve the multiple issues that surround lubrication in an industrial plant.” CBC Australia’s national product manager for Lubricants, Steve Keown, agrees and acknowledges the need for efficiency in manufacturing operations that service the building sector. “In a plant where you may have 50 or even 500 lubrication points, single point lubrication is not costeffective from either a labour or a site maintenance point of view,” explained Keown. “One multipoint or group of multipoint systems to deliver lubricant to where it is needed – be that a series of chains, bushes, or bearings – is the most efficient and easiest to manage.” Shivalkar further points out that an industrial environment will present occupational health and safety challenges as well. “Access to lubrication points may be limited because of the risks associated with the machinery or the building materials that are being manufactured. Workers may have to adorn special protective gear to access certain areas, or there may be issues with contamination of the product,” he explained. “When an operation has to turn
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One multipoint or group of multipoint systems to deliver lubricant to where it is needed – be that a series of chains, bushes, or bearings – is the most efficient and easiest to manage. off machinery in order to top up the lubrication, that is a major issue, because that translates to lost productivity.” The Alemlube “Pulsarlube” multipoint lubricators resolve these issues. “Benefits of the multipoint system besides the obvious – which is that it can dispense to several points compared with a singlepoint unit – is that it can be mounted outside of the area. Because the units are high pressure – they can take up to 60 bar max – and can be installed remotely,” Shivalkar elaborated. “Additionally, the unit can be as far as six metres from the dispense point for a multipoint set up, and 8 metres for single point, which is a big advantage as you don’t need to stop operations to change anything with the grease lubricator.” There are also a number of customisable options for manufacturers to choose from, says Shivalkar. “The first option is machine synchronised – usually with the
power, so when the power is on, the lubrication unit is on and vice versa when the power is off. Another option is the Pulsarlube Mi series which uses vibration-activated lubrication,” he explained. “Then there is the PLC option, where the unit is hooked up through the existing PLC system at the plant. Also, we have the BT series, which is works with Bluetooth and a mobile app. You can do easy maintenance by monitoring via the mobile app within 5-20 metres, so this is a great option in factories where contamination is a risk, or you cannot get into those positions (where the lubrication units would be set up) easily.” Importantly, Alemlube and CBC work together in providing customisable multipoint lubrication systems to customers within this segment. CBC not only acts as a distributor of the Alemlube products but is critical in being able to tailor lubrication systems to suit the end customers. “A key example – and another advantage of our multipoint offering – is that a customer can buy a service pack and supply grease cartridge, and we will fill the pouch with the grease of the customer’s choice,” said Shivalkar. “As CBC work with a large number of suppliers, including other lubrication companies, they are able to customise to the customer’s needs. We see our relationship with CBC as mutually beneficial – we offer them the product, services, and training, but they also have a wide range of suppliers, an extensive network of branches and technically-trained staff. For the end customer, the most important
The Alemlube “Pulsarlube” multipoint lubricators are high pressure units which can take up to a maximum of 60 bar and can be installed remotely. benefit is having access to available stock as well as reliable lubrication systems that are customisable to their specific needs.” Keown also points out that the Alemlube name is well-known across all industries in Australia – for good reason. “Certainly, the products we purchase from Alemlube are of a global standard and they have a highly reputable name in the marketplace as a multipoint lubricator. The parts are readily available for the units as well and we don’t have any comeback or failure rate with the units, they’re very reliable and robust,” Keown enthuses. “CBC and Alemlube have been working together for a long period of time, and both companies are recognised and trusted in the industry. We’re also both national and have branches throughout Australia, so really it’s a perfect match for us to work together in local markets with local teams and with local staff to provide customer solutions.” Manufacturers’ Monthly MAY 2020 31
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Sensor Technology VEGA ramps up support for Australian manufacturers amid coronavirus Manufacturers’ Monthly spoke with VEGA Australia managing director John Leadbetter about how the company is supporting Australian manufacturers and looking abroad for solutions.
There are a number of people inside VEGA nationally and internationally that are working on finding solutions throughout any given situation.
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EEPING the lines of communication open with customers is critical during challenging periods. That is the view of VEGA Australia as the company continues to monitor their global network to seek solutions to challenges posed by the coronavirus pandemic. VEGA Australia managing director John Leadbetter said the Australian arm of the company has adapted by using digital technology to connect with customers and continue providing service. “No-one has faced this current situation before, so we’re all trying to forecast what may or may not happen,” he said. “There are a number of people inside VEGA nationally and
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internationally that are working on finding solutions. As each one comes up, we’re finding a solution.” The Australian factory is currently running at 100 per cent capacity, with two large shipments arriving twice a week from the company’s headquarters in Black Forest, Germany. “We’re still here, we’re still in business, and we’re still here to support the clients in the field,” Leadbetter said. “As far as the support side from the products, we’re doing everything humanly possible to make sure there’s no break in the producers there. “With customer support, if allowed face-to-face, we’re still doing it as normal.”
VEGA Australia currently offers service by working remotely with customers using digital technology to look at programs, product installations, and then remotely helping on-field clients address concerns, faults or non-performance. Leadbetter said the Australian business has sought answers by monitoring situations overseas in order to put safeguards in place to minimise disruptions and predict potential problems. The company sees maximising options for their couriers to successfully deliver good into Australia as a priority, while looking at government responses to the coronavirus overseas. “When we’re dealing with a worldwide network, different
countries have different hurdles and challenges,” Leadbetter said. “Fortunately, here (in Australia) at the moment, we don’t have as many as the northern hemisphere. “What we’re learning from the northern hemisphere is helping us put procedures as safeguards in place.” VEGA Australia is preparing for a worst-case scenario to make sure Australian operations continue to increase stock and keep supply chains alive. “Let’s take India for instance – it is in 100 per cent lockdown,” he said. “There’s no transport in and out of the country, but then at the moment, the majority of their workforce is actually at home. Manufacturers’ Monthly MAY 2020 33
Sensor Technology “Industry, apart from critical infrastructure is basically shutdown.” Although he does not believe Australia will reach a similar degree, Leadbetter said VEGA is prepared to move forward with awareness of the “massive impact” on support systems and the industry more broadly. “Looking at their situation, that’s why we’re monitoring our international transport to make sure that our couriers that we use have alternative methods of transport,” he said. “Should the airline system shut down completely with freight, what are their options in regard to getting goods into the country. “If the transport system was to decrease, it would affect the efficiency here and we’ve got products here in the country to support the Australian customers.” Leadbetter said even though domestic delivery has not been affected by government policy, the biggest challenge that remains is international freight. He said that VEGA is always adapting to the changing scenario of the ongoing crisis and are constantly steps ahead to find the best
VEGA is always adapting to the changing scenario of the ongoing crisis and are constantly steps ahead to find the best outcome for their customers.
outcome for their customers. “At the moment, we still have international freight auctions coming into Australia,” he said. “If that was to change or lessen, then that would be a strain on the system and in finding a solution,
VEGA is prepared to move forward with awareness of the “massive impact” by the COVID crisis on support systems and the industry more broadly.
34 MAY 2020 Manufacturers’ Monthly
we’ll work with our international freight couriers to make sure that we’ve got safeguards in place. “As much as possible, we’re doing everything that the system allows us to do.” 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 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, earlier this year, VEGA Australia finally launched a new product range targeted exclusively towards the automation and manufacturing industry starting on 1 January 2020. manmonthly.com.au
JULY 2020 – PERSONAL SAFETY EQUIPMENT In the COVID-19 crisis, the concept of safety hits is more important than ever when it comes to keeping your industrial operations going smoothly and your workers safe. The changing regulations are putting the onus of worker safety increasingly onto employers. Never has there been a more critical time for workplaces to invest in appropriate safety equipment. In July 2020, we speak with providers of personal safety equipment, to provide employers with a guide on what they must offer in their workplaces during this unique period. In every edition of Manufacturers’ Monthly, we’re proud to work with our commercial partners on content that helps connect you with your future customers.
Booking deadline: 03 June 2020
To book contact DANILO CORTUCCI now danilo.cortucci@primecreative.com.au | 0434 419 663
What’sNew ARCHMI series provides customisable options for integration APLEX realised that the global automation market needs a human-machine interface (HMI) which is highly expandable and customisable to satisfy a broad range of industries and applications. Designed for customers who need perfect integration, the ARCHMI series can be tailored to meet a wide range of end-user requirements. The ARCHMI series features IP65-rated flat panels, fanless enclosures, multi-touch capability, extensive expansion options, optional wide temperature support, optional sunlight readable anti-scratch screens, and optional optical bonding. The ARCHMI series can be customised with a variety of I/O expansion modules and connectivity options. Eleven TB-528 series Mini-PCIe expansion modules are available and providing support for LAN, USB, and COM ports, as well as POE and CANbus.
requirements of any application. In addition, a wide range 9~36VDC input voltage allows the ARCHMI Series to be power from almost any power source. Industrial automation has evolved significantly in recent years and the ARCHMI Series has been designed to keep up with the challenges of Industry 4.0 and IoT. While the ARCHMI Series focuses on smart factory automation it is equally at home in commercial environments including building control, transportation, retailing and education. Company: Interworld Electronics and Computer Industries Phone: (03) 9593 7555 Web: www.ieci.com.au
The ARCHMI series is available with 7-inch~32-inch TFT-LCD displays and supports both resistive or projected capacitive touchscreens. The optional optical bonding of the LCD screen minimizes reflections, reduces condensation, and eliminates any dust between the layers to provide a longer service life with improved appearance. Constructed in a corrosion resistance aluminium heatsink style die-cast enclosure, the ARCHMI Series inherently provides very effective fanless thermal cooling. The design also allows easy access to the system’s internal hard disk or solid-state drive storage device. With Intel processor support for Celeron N2930 and 6th Gen. Core i3/i5 with up to 16GB of memory the ARCHMI Series can be optimised to meet the computing
Hybrid roller bearing with tribo-polymer sliders halves coefficient of friction in lateral position In order to move doors, monitors, or even panels, users rely on lateral installation of the linear systems. To enable the linear guides to absorb these lateral forces better, igus has now developed a new hybrid linear system. Two hybrid bearings provide low-friction adjustment with polymer rollers and tribo-polymer slide elements. Combined with an easily fit rail adapted to the new roller bearings, Treotham offers a cost-effective and visually appealing complete solution. In the packaging industry, furniture technology, or even in machine tools: drylin linear guides can be found wherever movement is required. On tribologically optimised liners, the linear carriages slide on the rail, ensuring precise and longlasting adjustment. If a low driving force is required for manual adjustments, rollers are used in the bearing element. Especially for a lateral installation, the position of the rollers for the force absorption is crucial.
Smooth adjustments with low-friction Using a top plate, the two new roller bearings from Treotham can be expanded to a linear carriage. To ensure that the bearings can also be used on the appropriate guide, igus has developed a low-profile hybrid roller rail. This has a special geometry optimised for the hybrid roller bearing. The rail has a simple design without visible holes and is able to attach from the back with sliding blocks. This makes the new rail in combination with the hybrid roller bearing ideal for lateral installation, for example in kitchen and furniture construction as well as in machine tools or in jig construction. Company: Treotham Automation Pty Ltd Phone: 1300 65 75 64 Web: www.treotham.com.au
As a solution for such applications, igus has now developed two new hybrid roller bearings, which offer smooth adjustment with low drive forces and maximum support at the same time. The WJRM-41-10 has two offset polymer rollers with optimised alignment for better force absorption and easier rolling. The hybrid roller bearing WJRM-31-10 with single roller is in turn the matching, supporting bearing on the opposite side. By using the two roller bearings, the user can minimise the coefficient of friction by half and increase the service life of the application. In both bearings, in addition to the rollers, there are sliding elements made of the low-friction tribo-polymer iglidur J. The lubrication-free and maintenance-free material is characterised primarily by its low coefficient of friction in dry operation. Both bearings can be positioned at the desired bearing clearance. These are very cost-effective if the bearings are produced in the zinc die-casting process.
36 MAY 2020 Manufacturers’ Monthly
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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 22kW 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. Company: BOGE Compressors (Australia) Pty Ltd Phone: (03) 5940 5913 Web: au.boge.com
Qorvo PAC5524 offers compact solution for expanded I/O BLDC motor applications Mouser Electronics, the industry’s leading New Product Introduction (NPI) distributor with the widest selection of semiconductors and electronic components, is now stocking the PAC5524 motor controller and driver from Qorvo. The 70 V Power Application Controller (PAC) features increased input/output (I/O) capability and is optimised for a high-speed brushless DC (BLDC) motor control. The Qorvo PAC5524, features Qorvo’s Multi-Mode Power Manager (MMPM), which delivers an all-in-one power management solution for multiple types of power sources. The MMPM features a configurable multi-mode switching supply controller that is capable of operating a SEPIC or buck converter and as many as four linear regulated voltage supplies.
programmable auto-sampling of up to 24 conversion sequences, and a flexible clock control system. The highly integrated device is housed in an 8 mm x 8 mm package, making it an ideal choice for compact, battery-powered BLDC motor applications that require additional I/O in order to implement value-add system control functionality. Company: Mouser Electronics Phone: +91 80 42650 000 Web: au.mouser.com
The PAC5524 device is based on a 150 MHz Arm Cortex-M4F 32-bit microcontroller and integrates a Configurable Analog-Front End (CAFE) and multiple Application-Specific Power Drivers (ASPDs). The CAFE is comprised of three differential programmablegain amplifiers, four single-ended programmable-gain amplifiers, digital-to-analogue converters, comparators, and several I/Os. The ASPDs include integrated level shifters and pre-drivers designed for H-bridge, half-bridge, 3-phase, and general-purpose driving. Qorvo’s PAC5524 motor controller and driver offers 128 Kbytes of embedded flash memory and 32 Kbytes of SRAM memory. The PAC5524 also features several serial communications interfaces, a 2.5 MSPS analogue-to-digital converter with
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Manufacturers’ Monthly MAY 2020 37
What’sNew Successful Venturi Aerator installation for Bega Cheese In 2018, Bega Cheese environmental manager – Northern Victoria, Sean Trebley was given the task of upgrading their Strathmerton Plant’s wastewater aeration system. The wastewater system consisted of a DAF unit, which flowed into an aerated lagoon, and after this the effluent was stored in two non-aerated lagoons during winter, before irrigation in summer. Aerators are needed to keep the COD down and reduce odours in the aerated and the downstream non-aerated lagoons. They had an ageing system of surface aerators in the aerated lagoon, consisting of two 22kW units and six 8kW units, however generally only a couple of these units were operated at any time. Over a number of years, these surface aerators had progressively failed because of their age and repairing them meant deploying cranes and/or boats to access them. This process was expensive and had resulted in damage to the dam liner. Eventually it became uneconomic to keep repairing the aerators. A solution that was safer for operators and easier to maintain so Trebley contacted Hydro Innovations to discuss the use of their “bank-mounted” Venturi-Aeration systems. These are mounted on the banks of lagoons and use a self-priming pump to draw water from the lagoon. The pump discharges it under pressure through the Venturi-Aerator. The unit draws in atmospheric air using the “venturi effect”, mixes it with the water being pumped, and discharges it back into the lagoon, charged with dissolved oxygen.
38 MAY 2020 Manufacturers’ Monthly
Sean and his team liked the idea of bank-mounting because it gave operators easy access to equipment for monitoring and/or repair, making it much safer and more cost effective to maintain. Their only concern was whether the units were as efficient as the surface mounted technologies. Hydro Innovations were able to provide information indicating that with the use of the right pump, oxygen transfer efficiency (OTE) for Venturi-Aeration units can be as high or higher than 1.86kgO2/kWh, making them as at least as efficient as the surface (floating) technologies. The aerated lagoon contained 45ML of effluent, with in-flows from 80-120ML per year. This required a 150mm Venturi-Aeration unit and was paired with a GormanRupp V6A60-B self-priming pump, with a hydraulic efficiency of 70 per cent. Bega Cheese installed the unit early in 2019. Since installation, operators have seen a continued increase in the dissolved oxygen (DO) level and have seen COD fall by 50 per cent even though the higher level of mixing was re-suspending settled solids, which became more “bioavailable” to the CFU’s. Bega Cheese are happy with the ever-increasing levels of DO, the reduction in COD, and their odour free lagoon. The wastewater and maintenance teams are also pleased that monitoring and maintenance can be done safely, and without the use of cranes, boats or winches. Company: Hydro Innovations Phone: (02) 9898 1800 Web: www.hydroinnovations.com.au
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Some commitments never change and some things must never stop. Like hospitals, food production, manufacturing of pharmaceuticals, water treatment and power supply. Society relies on our customers and we are here to support because we all depend on each other. YouTube Atlas Copco Compressors today!
www.atlascopco.com or 1800 023 469
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