Manufacturers' Monthly July 2016

manmonthly.com.au MANAGEMENT >> TECHNOLOGY >> SOLUTIONS Est. 1961 JULY 2016

Mean, Lean, Green Machine SmartWasher .

The Power to Clean Safely

Print Post Approved PP100007882

TM

This revolutionary technology is brought to you by CRC Industries.

Visit crcsmartwasher.com.au for more information.

Learn more about how the SmartWasherTM can work for you

Mean, Lean, Green Machine SmartWasher . The Power to Clean Safely TM

Mean Effective heavy duty cleaning, 100% of the time. The SmartWasher uses Bio Remediation technology and a proprietary blend of micro-organisms to break down oil and grease into water and CO2.

SmartWasher’s self-cleaning process ensures it works at full effectiveness, every time.

Lean Significant operating cost reductions over traditional solvent based cleaning systems are realised through elimination of toxic waste removal and solvent replacement. Safe and simple maintenance that any operator can do; a weekly filter change and monthly fluid top up.

This revolutionary technology is brought to you by CRC Industries.

Visit crcsmartwasher.com.au for more information.

Green SmartWasher is as environmentally friendly as it gets. Non toxic, non flammable and solvent free, waste removal is a thing of the past. Meaning it’s better for the environment and better for you.

Learn more about how the SmartWasherTM can work for you

manmonthly.com.au

MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

JULY 2016

INDIA

Opportunities galore for Australian manufacturers

INSIDE >>

Print Post Approved PP100007882

22

Is there a connection between terrorists and engineers?

30

Five disruptive logistics trends

36

Regional manufacturer showing how it’s done

>>

Improve your productivity with welding automation.

At BOC, we understand the challenges your business faces everyday. If we can help you increase productivity while keeping your costs down, then we’re doing our job.

We recognise that for welding and plasma cutting, it’s important to use the right combination of BOC gases, quality consumables and state-of-the-art equipment to help you achieve the results you need.

Through an exclusive partnership with EWM, we’re able to supply your business with a comprehensive range of welding automation packages.

These MIG/MAG, TIG and plasma welding systems are designed to be integrated with robots or custom/hard automation installations. A number of these systems are already in operation in the Australian and New Zealand manufacturing industry.

BOC Limited, Riverside Corporate Park, 10 Julius Avenue, North Ryde, NSW 2113 Australia

ABN: 95 000 029 729 | boc.com.au | 131 262 BOC is a trading name of BOC Limited, a Member of The Linde Group. © BOC Limited 2016. MP16-0101|MM|ML|0716

A Member of The Linde Group

Our welding automation range includes the following: → alpha Q MIG/MAG with coldArc®, forceArc®, pipeSolution®, pulse and superPuls® welding and MIG brazing → Phoenix MIG/MAG with forceArc®, rootArc®, pulse and superPuls® welding and MIG brazing → Tetrix DC and AC/DC TIG with activeArc®, ACspecial, AC waveform selection, kHz pulse welding → Tetrix DC and AC/DC plasma welding → Quality management software eg. Xnet, QDOC 9000 BOC has an agreement in place with our integrator partner Robot Technologies Australia (RTA) who have extensive experience and capabilities in welding and plasma cutting automation. The role of RTA is to provide you with a turnkey package which includes modelling, scoping, costing, engineering, assembly, commissioning, installation and operator training as well as after sales service and support. BOC also has a wealth of technical expertise available to you through our team of Specialists located nationally.

To find out more, contact Peter Kuebler, Technical Solutions Engineer on peter.kuebler@boc.com

/bocsouthpacific

/bocsouthpacific

/user/boclimited

/company/boc-south-pacific

manmonthly.com.au twitter.com/Manmonthly facebook.com/Manmonthly

Inside­­ JULY 2016

For daily news visit manmonthly.com.au

Managing Director: John Murphy

18

anaging Editor: Branko Miletic M Ph: (02) 8484 0976 Fax: (02) 8484 0722 branko.miletic@primecreative.com.au Assistant Editor: Brent Balinski Ph: (02) 8484 0680 Fax: (02) 8484 0722 brent.balinski@primecreative.com.au Editor-at-Large: Alan Johnson Ph: (02) 8484 0725 alan.johnson@primecreative.com.au Art Director: Michelle Weston michelle.weston@primecreative.com.au

34

Design: James Finlay, Blake Storey, Sarah Doyle Sales/Advertising: Matthew Nutt Ph: (02) 8484 0614 matt.nutt@primecreative.com.au

Subscriptions Published 11 times a year Subscriptions $140.00 per annum (inc GST) Overseas prices apply Ph: (03) 9690 8766

Copyright Manufacturers’ Monthly is owned by Prime Creative Media and published by John Murphy. All material in Manufacturers’ Monthly is copyright and no part may be reproduced or copied in any form or by any means (graphic, electronic or mechanical including information and retrieval systems) without written permission of the publisher. The Editor welcomes contributions but reserves the right to accept or reject any material. While every effort has been made to ensure the accuracy of information, Prime Creative Media will not accept responsibility for errors or omissions or for any consequences arising from reliance on information published.

The opinions expressed in Australian Mining are not necessarily the opinions of, or endorsed by the publisher unless otherwise stated. © Copyright Prime Creative Media, 2016 Articles All articles submitted for publication become the property of the publisher. The Editor reserves the right to adjust any article to conform with the magazine format.

Head Office 11-15 Buckhurst St South Melbourne VIC 3205 P: +61 3 9690 8766 enquiries@primecreative.com.au http://www.australianmining.com.au Sydney Office Tower 1, Level 13, 475 Victoria Avenue, Chatswood, NSW 2067, Australia

Average Net Distribution Period ending Sept ’15 18,371

22 6 Editor’s Comment

22 International Affairs

8 Industry Comment

24 Defence Manufacturing

34 Robotics & Automation

10 Manufacturing and India

26 Management

36 Innovation

16 Operational Intelligence

28 Warehousing

38 Export

18 Automation

30 Logistics

40 New Products

20 Industry 4.0

32 Energy Management

42 The Last Word

Behind the cover EXPERIENCED manufacturers describe exporting to India as a similar experience to eating its food; very appetising, but can often be too hot to handle.

When Narendra Modi swept into power in May 2014 it prompted jubilation amongst the Indian population and seemed to usher in a radical change from the sclerotic Congress government he had deposed, promising jobs for the young, toilets for the poor and economic reforms for investors and entrepreneurs with a revival of India’s manufacturing sector.

Two years on, and even Modi’s supporters are beginning to wonder if the

prime minister will be able to achieve half of what he pledged, especially regarding economic development and his much heralded “Make in India” and “Digital India” programs.

Despite all the negative press, in the past two years India has accelerated road-building, invested in the ageing rail network, launched an ambitious solar power plan, opened accounts for more than two hundred million previously unbanked Indians, and increased the foreign investment limits for sectors ranging from insurance to defence manufacturing.

manmonthly.com.au

MANAGEMENT >> TECHNOLOGY >> SOLUTIONS

JULY 2016

INDIA

Opportunities galore for Australian manufacturers

INSIDE >> 22

Print Post Approved PP100007882

Production Coordinator: Ziba Mahabat Ph: (02) 8484 0625 ziba.mahabat@primecreative.com.au

Is there a connection between terrorists and engineers?

30

Five disruptive logistics trends

36

>>

Regional manufacturer showing how it’s done

Printed by: Manark Printing 28 Dingley Ave Dandenong VIC 3175 Ph: (03) 9794 8337

manmonthly.com.au

Manufacturers’ Monthly JULY 2016 5

Comment

BRANKO MILETIC – Managing Editor

Mood swings, sausage sizzles and manufacturing wins

S

o here we are, after one of the longest election campaigns in Australia’s history and the result is a non-result. Or should I say a non-conclusive result.

At the time of writing, we have what could be best described as a halfway house of either a hung parliament with the potential of a minority government or we are going to have another election - a re-run to try and sort out this mess.

If you believe veteran ABC political analyst and Insiders host Barrie Cassidy, despite the Prime Minister’s confidence postal votes will secure a majority for the Coalition, he “can’t see that happening” and we are “well and truly in hung parliament territory”.

Looking at the colourful collection of cross-benchers that the Turnbull government may need to cut deals with in order to retain

government, on paper at least, an election replay may well seem like the least insane of ideas.

Those that are surprised by this outcome obviously have not been paying attention to the trends from overseas. Think the Trump phenomenon from the US, the shock of Brexit, and the slow but sure move to smaller fringe parties in France, the Netherlands, Sweden, Finland, Austria, Germany, Italy and a swathe of eastern European states where anti-establishment voting is now the norm rather than the exception.

The result in our election too has thrown up an esoteric bunch of small and micro parties, some with a focus on conspiracy-like ideas such as the Hansonites, (or Hansonistas as I like to call the followers of Pauline Hanson) to those on a more balanced view-of-the-world spectrum, such as centrist populists like the Nick

Xenophon Team or NXT. For the manufacturing industry, the inclusion of Nick Xenophon into the national political spotlight should be seen as a good thing.

While Xenophon has ruled out serving as a minister in a minority government and is demanding more help for steelmaker Arrium and manufacturing industries in exchange for supporting a Malcolm Turnbull or Bill Shortenled government, the spotlight is finally beginning to shine on our manufacturing sector.

For too long, Australian manufacturers were denied a highprofile champion in Canberra who could get things done to help the industry.

While we have had the ALP’s Kim Carr and the likes John Madigan in parliament trying to shift the governments focus from shiny

things to helping support and fix manufacturing, with Xenophon we have a true media performer (or media ‘tart’ as he has been called by some) that wants a strong, viable and above all thriving manufacturing sector.

“People are worried about their jobs, their children getting jobs, the collapse of manufacturing and the auto sector,” he said in a wideranging interview to news.com.au.

“A vote for me and my team is a vote for accountability. I try and get better, reasonable solutions and be pragmatic,” he added.

Not only should this be good news for manufacturers, for the rest of the electorate, if a new poll is called, then we get to re-sample the delights from another sausage sizzle.

That’s wins all round in my book. branko.miletic@primecreative.com.au

PREVENTING MACHINE STANDSTILLS:

TRIO POWER & MULTI-CHANNEL DEVICE CIRCUIT BREAKERS THE PERFECT TEAM! There is nothing costlier than a machine that is down.

The TRIO POWER power supplies and the CBM multi-channel device circuit breakers work perfectly with each other when the availability of your system is important. Both products are perfectly matched to the requirements in machine building. phoenixcontact.com.au | 1300 786 411

6 JULY 2016 Manufacturers’ Monthly

manmonthly.com.au

! d r a y k c a b r y r u e n i o ch a n M i g rkin W o w d O o o N W , d n a A l S Meta U n i s n i g i Or

Baileigh Industrial is now offering a local source for our world famous machinery in Australiasia. Based in Melbourne, our staff take pride in offering our customers the best industrial grade equipment and providing prootable solutions for all of their metal and wood machinery project requirements. Visit www.baileigh.com.au for more information or better yet, give one of our knowledgeable technical staff a call at (03) 8374 3888, mention the word “catalogue” and receive a special gift along with our full line catalogue lled with over 300 pages of the best metal and woodworking machinery on the planet!

BAILEIGH means... precision. performance. perfection.

Baileigh Industrial PTY Limited 122-126 Melrose Dr. Tullamarine VIC 3043 AU (03) 8374 3888 / www.baileigh.com.au sales@baileigh.com.au

Comment

RICHARD REILLY – CEO, Low Carbon Mobility International Pty. Ltd, and Manager/Co-Founder, Manufacturing on the Move

Automotive echoes The mere mention of ‘automotive’ in Australia typically triggers an allergic reaction, so we won’t be talking about it … much.

T

HAT said, a glance in the rear view mirror gives us two truths as a starting point to move on beyond ‘old automotive business-asusual’: • Swapping conspiracy theories and finger pointing is a futile exercise, as we’re counting down to the final shifts of traditional vehicle assembly operations. We’re at where we’re at.

• Willing customers are the vital starting point, and not some inconvenient statistical factor in an otherwise inspirational narrative.

‘Mobility’ is all about the movement of people and the delivery of goods and many services. Economies, industries and communities run on ‘Mobility’ – it’s not optional, and it certainly cannot afford to be a licence for inefficiencies or profligacy in resource consumption. Paradoxically, the needs and interests of oil producing and oil consuming economies are increasingly convergent on future perspectives for sustainable transportation.

Let’s stay with customers, collectively known as ‘markets’.

Global demand for Light Duty Vehicles – cars, vans and derivatives such as utes – is on a 2.5 times growth trajectory 2002-2030 that will require ‘the industry’ (in whatever future form) to supply tens of millions of extra units every year.

The customer base is not shrinking – and 75 per cent of this stellar growth is happening in non-OECD markets. ‘Commercial geographies’ – production operations, supply chains and channels-to-market – will be quite distinct from the modus operandi of the first automotive century.

Ambitious and agile players can therefore target a share of additional volumes – the market pie is getting bigger. It’s also very different. If we fast forward from ‘old automotive business-as-usual’ the next place we land should be more than just ‘new automotive’.

What? Just about avoiding the skidpan of buzzwords, marketeers will recite ‘Easy-Mobility’, ‘EnergyMobility’ or ‘Eco-Mobility’. It’s all those things, but primarily ‘ElectroMobility’ looks like the dawn of a new era of motoring, just 100 years on from The Detroit Electric car that broke new ground, had customer appeal in the face of high gasoline prices and then faded against the march of ever more efficient Internal Combustion Engines and the Wall Street Crash.

There is compelling evidence that E-Mobility is now becoming mainstream, with existing and new companies being taken very seriously. It’s possible that a big establishment player – cutting corners on emissions – has given the ramping up of E-Mobility an extra nudge, but the momentum was already building.

For now, we’ll tag ‘E-Mobility’ as a catch-all covering Plug-In Electric Vehicles, Range-Extended Hybrids and potentially also Fuel Cell Vehicles – all ‘EVs’. Granted, zero tailpipe emissions are not in all cases zero absolute emissions, but – for megacities in Asia or South America – detoxing gridlocked traffic systems depends on having nothing noxious coming out of a tailpipe. Clean power generation, plus a significant

Let’s call this brave new world ‘New Mobility’ Customer aspirations, needs and wishes are unquestionably evolving fast – driven by demographics, accelerating urbanisation, and ever more pressing imperatives on the alternative fuels / clean energy question.

8 JULY 2016 Manufacturers’ Monthly

‘New Mobility’ has E-Mobility at its core

de-centralised or off-grid renewable energy content for recharging EVs, are massive opportunities that derive from taking the initiative in E-Mobility.

Are we talking about some kind of ‘green business’?

Not as such. We’re focussed on deploying cutting-edge science and state-of-the-art technologies – both abundant in Australia if we work out how to activate them – for mobility products and solutions on a commercial scale. That market volume part of the equation – multiplying ‘Clean Tech’ product offerings – then delivers ultra-low emissions on an absolute scale, optimises resource consumption and makes a positive contribution to the climate conundrum.

That still doesn’t make it a green business looking for customers, but timely positioning for a marketfacing, entrepreneurial play results in ‘green deliverables’ – not to mention a range of qualified jobs across the entire advanced manufacturing cycle and owning some very useful know-how.

What’s any of this got to do with Australia?

• Accessible growth markets exist with volumes and dynamics we can realistically chase as our geography can now be turned to our (competitive) advantage – we are neither too small nor too remote.

• We have capabilities and untapped potential in key design and manufacturing areas: power- and drivetrain elements / advanced materials / lightweighting for volume production / 3D & AM, et al underpinning hype-free claims to ‘cutting-edge’ – mediocrity is never worth the trip!

• Being at where we’re at is a 2-sided coin: old-style assembly locations are no longer set in stone, and new manufacturing technologies are

recasting supply chains and cluster configurations as we speak.

• The country that invented fast Wi-Fi and the black box Flight Data Recorder surely has great credentials as a pro-activist in the operating infrastructure for E-Mobility: hacker-proof ultraconnectivity, anyone?

Can we do it?

• Capacity building is best achieved with ‘international friends’, i.e. highly collaborative development and commercialisation partnerships.

• BUT we need to pass the ‘are they serious test?’ as a safe destination for FDI and players-of-choice in quality, long-term alliances.

• Key to that is a robust national ‘can-do mindset’. Admiring a pioneering new entrant from Silicon Valley who took on Detroit, or new business models for ride share / ‘wheels on demand’, is fine – but only to read the signals before rolling up our collective sleeves and launching our own initiatives.

The opportunity – to be missed, or grasped with both hands – is far greater than ‘just E-Cars’.

Orbiting the wheeled projectiles of ‘New Mobility’ – whatever they’re labelled when much of the driving may be done by chips, sensors and algorithms – are the synergy planets of integrated transport systems, renewable energy supply, energysmart CBDs, new retail business models for ‘Mobility’ vs. ‘Cars’ and more …

See you on the starting grid!

Richard Jefferies is the CEO, Low Carbon Mobility International Pty. Ltd, and Manager/Co-Founder, Manufacturing on the Move – a Window on High-Value Manufacturing in and from Australia. ©2016 Manufacturing on the Move manmonthly.com.au

Comment Labor gets set for damage control A Shorten Labor Government will repair the damage inflicted on Australian science and research by the Abbott-Turnbull Liberals.

I

n his 2014 Budget Reply, Bill Shorten set an aspiration for Australia to devote 3 per cent of our GDP to research and development by 2030. Achieving this will require governments, universities, research organisations and industry to work together.

Labor has already announced significant investments in the CSIRO and marine research, with a focus on securing the health of the Great Barrier Reef.

Labor will reverse the savage cuts to university research funding that were part of Christopher Pyne’s infamous “fix” – restoring block grant funding and reducing the pressure to use student fees to pay for research.

Labor believes that every university in Australia should be doing great research, and we’ll help our regional, outer metropolitan and smaller universities get a fair go by funding two new rounds of Labor’s successful Collaborative Research Networks program.

As well as working together, Labor wants universities to work better with industry and other end-users to spread the benefits of their research.

We will boost the Industrial Transformation Research Program, introduced by the previous Labor Government, enabling at least four additional research hubs to be funded in each of the next five rounds.

That will mean more industries in transition can have access to excellent Australian research to improve their productivity and create the jobs of the future.

Unlike the Liberals, who turned the research collaboration system upside down with their $107 million manmonthly.com.au

cut to the Cooperative Research Centres (CRC) program and their failed Industry Growth Centres, Labor will invest in what works – proven programs that have stood the test of time.

We’ll fund two additional CRC rounds to get the program moving again and meet the demand from industry and researchers that has built up over two and a half years of uncertainty and delay under the Liberals.

The Liberals have left expiring CRCs high and dry. Under Malcolm Turnbull, the CRC for Plant Biosecurity and the Invasive Animals CRC would simply end – and that’s a real worry for Australia’s primary industries.

Strong biosecurity research is critical to ensuring the long-term health of Australia’s agricultural sector, animal and aquaculture industries and natural environment.

Labor will establish a new Australian Institute for Biosecurity, building on the work of the two CRCs and the strategic direction developed by the sector.

Labor is proud to support Australian science and research with these targeted initiatives. But we understand that the future of research enterprise is not just about money.

In a global sector with a highly mobile workforce, it is also about confidence and respect.

[Senator Kim Carr is the Shadow Minister for Higher Education, Research, Innovation and Industry]

Thermal Imaging Camera for Production Control (ability to see through glass)

Wireless Solution for Remote monitoring, Built-in test equipment & Process supervision Bestech Australia U14, 44 Garden Blvd

MEL.: 03 9540 5100

Dingley VIC 3172

SYD. : 02 9624 4233

Enquiry@bestech.com.au www.bestech.com.au Manufacturers’ Monthly JULY 2016 9

India Australian companies looking to capitalise on India’s economic summer With a growing appetite for technology, quality and performance, India’s auto sector has been cited as an area of opportunity for Australian companies. It’s also very tricky regarding what it expects, Professor Peter Hodgson told Brent Balinski.

T

HERE are opportunities for Australian businesses in India, but there are also several mismatches that might frustrate you, believes Professor Peter Hodgson.

The automotive industry is a case in point.

The market is the world’s third biggest by size, it is the seventhbiggest producer and expanding fast, and the sector is increasingly spending on R&D (and looking overseas for help).

At the same time, there are sensitivities around cost, and these need to be carefully considered.

The Deakin University Interim Deputy Vice-Chancellor has visited the country dozens and dozens of times – most recently last month – as an expert on advanced manufacturing trends in the automotive industry.

“They want to have new materials at lower cost, which is sort of an oxymoron,” he told Manufacturers’ Monthly.

Incremental improvements, substituting heavy metals for light metals here and there, for example, may not be an effective solution for Indian customers. A clean sheet approach with new materials is often the way to go. As always, cost is a sensitivity.

“This is in theory – we haven’t done it in practice,” he said.

“But we’re just trying to highlight to car makers that the current incremental approach of substituting heavy metals for light metals has a limit in terms of what you can achieve – it also has a cost penalty as well.”

Hodgson lectured in Delhi, Chennai and Bangalore, presenting on advanced materials and research collaboration opportunities, between May 30 and June 17.

10 JULY 2016 Manufacturers’ Monthly

He notes several tensions when trying to keep customers there happy. These include between light weighting – an area where a study last year identified opportunities for Australian companies – and cost. This is also in conflict sometimes with increased demands around safety.

Better design for safety is on the minds of Indian auto makers, with seven locally-made (for local market) vehicles failing Global New Car Assessment Programme crash tests in May. Such tests will now be the norm from October next year.

“They’re usually competing things: often that means having more material in the car for crash resistance and stuff like that,” added the materials specialist.

Australian opportunities Last year Austrade and KPMG released a report on the burgeoning Indian market and what it could offer Australian suppliers.

The sector, representing 45 per cent of India’s manufacturing GDP, offered potential in six main areas, according to Opportunity assessment of automotive R&D market in India: lightweighting; alternative fuels; optimisation of powertrain, chassis and other parts; vehicle electrification; vehicle electronics; and safety technologies.

The country’s auto R&D spend has grown to 2 – 3 per cent of revenue from 1 per cent a decade ago. Australia’s way with “affordable excellence” made it a good match for partnering with Indian firms increasingly looking outside their organisation for R&D help.

The market is after “turnkey solutions” observed Hodgson.

“So the only way, in some ways, would be to set up a joint venture in

India, I think, and that’s my personal view,” he said, adding that there was a sort of “valley of death” in the mix to complicate things further with sensitivities around cost.

“It’s a tricky one. In some ways in the early stages you don’t want to settle on a joint venture, you just want to supply some products to get them get tested out, from the Australian operations. But then they’re very expensive [for the Indian client].”

Having technology and investment transferred from Australian companies into India was welcome, as was having money flowing out.

“They realise there’s got to be a profit to make it worthwhile coming in,” said Hodgson.

The new China?

With a growing economy (with a lot of room to grow) lifting millions out of poverty and into the market for high-quality imported goods, many have highlighted India’s similarities with China. There must be, therefore, opportunities for our exporters of products and IP. That may be the case, but things The Indian auto market wants affordable, turnkey solutions, says Professor Peter Hodgson

are rarely so straightforward. There are also big differences in demand from the two countries’ auto industries.

“So the difference between India and China is there are a lot more high-end cars made in China, BMW, Audi etc., whereas in India it’s sort of a generation below and there are more commodity vehicles for the mass markets – small, basic cars,” offered Hodgson.

Hodgson’s university was the first Australian university to set up an office in India, in 1996, and one of the first international universities to do so.

Not too long after, Hodgson began as head of Deakin’s school, Engineering and Technology at the university, following 15 years focussed on steel research at BHP. He has been a prolific visitor to India since, establishing the Deakin India Research Initiative in 2009, and receiving a felicitation from the Confederacy of Indian Industry in 2012.

As Australian auto businesses have been forced to do, he was led to look abroad out of necessity. It was a shock at first, but a pleasant one, and he spoke with excitement about the experience.

“For my research to be translated into industry is fairly [difficult] it’s not possible in Australia now – so I have to look to China and India for my two translational countries,” he said.

“I felt when I first started going there the real energy and dynamics for change, and you feel that you can actually make a contribution.”

“It’s just such a different country compared to anything I’ve seen beforehand, and that difference just appealed to me – with modern hotels and airports etc. you could be anywhere in the world, but when you’re in India, you’re in India.” manmonthly.com.au

MicrOpay

WAGES FOR YOUR WORKERS

PAY SMARTER

POWERFUL, AUTOMATED, COMPLIANT PAYROLL SOFTWARE FLEXIBLE PAYMENT OPTIONS AVAILABLE sage.com/au/manufacturing

India Be warned: India is not for the faint-hearted With a potential market of 1.3 billion consumers, India has massive possibilities for Australian exporters, but it also has enormous challenges as well, as Alan Johnson reports.

E

XPERIENCED manufacturers describe exporting to India as a similar experience to eating its food; very appetising, but can often be too hot to handle.

When Narendra Modi swept into power in May 2014 it prompted jubilation amongst the Indian population and seemed to usher in a radical change from the Congress government he had deposed, promising jobs for the young, toilets for the poor and economic reforms for investors and entrepreneurs with a revival of India’s manufacturing sector.

Two years on, and even Modi’s supporters are beginning to wonder if the prime minister will be able to achieve half of what he pledged, especially regarding economic development and his much heralded “Make in India” and “Digital India” programs.

Despite all the negative press, in the past two years India has accelerated road-building, invested in the ageing rail network, launched an ambitious solar power plan, opened accounts for more than two hundred million previously unbanked Indians, and increased the foreign investment limits for sectors ranging from insurance to defence manufacturing.

In fact, Mark Thirlwell, Chief Economist with Austrade, is quite upbeat about the second most populous country in the world, saying Australian exporters should “definitely” look at the market.

However at the same time, he warns potential exporters to look in a “clear-eyed” way and be prepared for the challenges involved there.

Thirlwell, who recently penned the organisation’s “Room to grow: The Australia-India economic

relationship” report, admits India, like the rest of the world, is facing a lot of headwind at the moment, but says the burgeoning nation, which is growing by over six million people a year, stands out as one of the stronger performers; growing faster than the Chinese economy.

“And like everywhere, India is trying to get business investor confidence up, but it’s one of caution at the moment, with the occasional outbreaks of optimism,” he told Manufacturers’ Monthly.

“When Modi came into power in 2014, there was a big surge in optimism. He said all the right things and had a very clear plan.

He had been very successful at the state level, and everyone was hoping to see that replicated on the national stage.

“However, that was followed by the realisation that it’s going to

Merchandise trade with India Merchandise trade with India

Merchandise trade with India

Rolling annual total, A$ billions

Per cent of total

20

16

10

Exports to India

8

Imports from India

Imports from India

12

6

8

4

4

2

0

0

Source: ABS. Note excludes confidential items

Exports to India

Source: ABS. Note excludes confidential items

be tough. All the developmental challenges driving this growth are huge; the different people, the economy, the Indian bureaucracy, and then there are the challenges managing the relationships between the different states. All these areas are still there.

“Modi has all the right intentions, and is doing all the right things, but it’s going to take time.

“He’s just going to have to work his way through them due to the sheer size of the problems,” Thirlwell said.

Tough market While India is our 10th highest trading partner ($18bn in two-way trade in goods and services in 201415), unfortunately it tops the list as Austrade’s most difficult country to do business with, higher than China, Indonesia, and PNG. According to Thirlwell the biggest challenges are cultural, language and business issues.

“Areas such as building longterm business relationships, how the buying processes work, how to structure deals, and how the negotiating processes work.

“As we have a common language, many exporters start off thinking it’s not going to be so hard. But when they get to the market, they find the opposite, with quite big differences in issues such as how to approach the market and build relationships.

“It’s almost a double whammy, because exporters going to a country where they don’t speak the language are prepared for that, but in India they might think they know what they are doing, but actually it’s a bit tougher.”

Thirlwell says other major issues include import barriers, tariffs at the borders and payment issues.

“But saying all that, I still believe India has strong potential for Australian exporters.”

He points out that India is our

Australia Unlimited

12 JULY 2016 Manufacturers’ Monthly

manmonthly.com.au

India 5th highest export market for goods at $9.8bn, just behind the US, but in front of NZ and Singapore.

“From our recent survey, India is a top five target market for exporters, and has been for the past two years.

“People see lots of opportunities for growth in India, but when you ask people who are already there; they all agree it’s a tough and challenging market.”

Growing middle class Thirlwell says India’s rising middle class is very attractive for exporters, but warns its size depends on who you talk to and where you draw the dividing line.

“The lower the income line, the higher the number.”

According to the Asian Development Bank, India’s middle class is expected to grow from its present 250 million to 550 million by 2025. However, other organisations suggest India’s middle class could be as low as 24 million at the moment.

Thirlwell admits India’s middle class income line is not on the same level as Australia, as income levels are very different.

“But a middle class in India still has disposable income and a desire to spend money on high quality goods such as food and beverages, as well as services, education and

and rising affluence in urban pockets.

“The economic growth and rising disposable income levels of the middle class continue to drive consumer demand and influence buying behaviour.

“If you think about the scale of the country, there has been a major improvement in the growth story, and

As we have a common language, many exporters start off thinking it’s not going to be so hard. But when they get to the market, they find the opposite, with quite big differences in issues such as how to approach the market and build relationships. tourism. Those areas underpin the opportunities,” Thirlwell said.

Whatever the size of the middle class, he says there has been a discernible increase in purchasing power in many parts of the country

against a challenging backdrop.”

Thirlwell describes it as an urbanisation story, and not just Tier One cities but Tier Two cities as well, all linked to the steady expansion of the Indian middle class.

Opportunities Austrade’s figures show that Australian exports to India are trending up, with Thirlwell expecting that to continue.

“There is strong scope for us to do more; the reason my report was titled ‘Room to grow’. While growth stalled during the GFC, and Australia lost some momentum, over the past few years we are moving back on track.

“And given the scale and size of India’s economy, it should be a strong market for us, and it will be as we move back towards that pre GFC trajectory.”

He said that being a high-tech country, Australian manufacturers have much to offer India, especially in composites, avionics, automotive, METS (mining equipment, technology and services) and food and beverages; building the Australian technology brand.

“There is a lot of potential and opportunities in India, but you have to be clear-eyed not just to the potential but also to the challenges

MATERIAL VARIETY FOR CABLE CARRIER SYSTEMS Your application determines the material • Made from standard material or various special materials • Exactly matched to your respective application • Wide range from standard applications up to complex applications • Solutions for special requirements

TSUBAKI AUSTRALIA Pty. Limited Sydney: 02 9704 2500 · Melbourne: 03 9215 2888 · Brisbane: 07 3273 0600 · Perth: 08 6254 0000 · Email: sales@tsubaki.com.au · Web: www.tsubaki.com.au

AD_210x122_RZ.indd 1

manmonthly.com.au

18.09.14 08:49

Manufacturers’ Monthly JULY 2016 13

India involved. It’s an emerging economy with all the challenges that that involves.”

On its website, Austrade highlights a number of manufacturing sectors with strong export potential.

Food and Beverage: Australian manufactured foods are establishing a reputation of ’clean and green‘ and assurance of quality, competing for shelf space along with other foreign imported food categories from Europe and North America.

There are opportunities for Australian exporters in, fresh produce, meat, dairy, beverages and processed food such as jams, cheese, honey, pasta, ready to eat, canned meats and vegetables, breakfast cereals, health foods, baby foods and sauces.

Wines are one of the fastest growing import categories in India, however, tariffs are generally 30-50 per cent on imported food products and up to 150 per cent on imported wines, which, when coupled with local excise and sales taxes, distributor margins, and transportation costs, retail prices can end up three to four times the Free On Board value of an imported product.

Automotive: India is now a globally recognised hub for the small car market with a number of international

India is a top five target market for exporters

OEMs entering the market in the last few years. A recently commissioned report from KPMG highlighted interest from Indian OEMs to partner

Exporters view on business environment

Australia Unlimited

14 JULY 2016 Manufacturers’ Monthly

23

with international organisations in lightweighting, safety, electronics, and vehicle electrification and gaseous fuels.

Areas for growth in India for Australian technology and solution include R&D partnerships, technology transfer, IP agreements for local manufacturing and innovative services including design, process re-engineering, testing and new manufacturing techniques such as 3D printing.

The Government of India intends to make the country an automotive manufacturing hub by offering: no restriction on Foreign Direct Investments, no export obligation, no foreign exchange neutralisation, no minimum R&D spend, and WTO compliant policies.

Mining: India’s mining industry is increasingly focusing on optimising efficiency and profitability by improving operational performance, managing capacity utilisation,

moving upstream in the value chain and incorporating the latest international METS. Opportunities for Australian exporters to supply METS include: mining IT and mine management systems, underground mining equipment, niche mining equipment, such as special pumps, valves, electrical, mineral beneficiation systems and components, safety systems and equipment, and environmental protection technology and equipment.

There are no quantitative import restrictions on METS with import duties around 7.5 to 10 per cent.

Business culture Though a traditional society at heart, when it comes to business dealings most internationally accepted practices are widely followed in the country.

Indians, for the most part, possess all the required skills such as language (English is widely used in written and oral communication), managerial, manmonthly.com.au

India technical and the ability to negotiate.

Any entertaining of business partners or clients is mostly done outside of the home.

In a business meeting using a formal manner of addressing a person e.g. ‘Mr Smith’, is safer than using their first name. Business cards are expected to be exchanged at most business meetings.

Punctuality is not a strong point of most Indians, but that is more a cultural thing than a professional shortcoming.

When setting up in India, Austrade recommends Australian companies to consider a regional plan, focusing on multiple locations and markets within India and finding appropriate partners within each region.

There are varying options for inmarket representation, ranging from appointing agents and distributors, to setting up branch/liaison offices, to setting up joint ventures and local subsidiaries.

Companies doing business with India may wish to establish a formal presence in the market. As with any international market, Australian companies intending to establish an on-the-ground presence in India should ensure that an appropriate business structure is put in place that complies with Indian and Australian regulations.

Establishing a business presence in India requires the completion of a set

manmonthly.com.au

of legal processes. The steps involved depend on the form and nature of the business and the structure chosen.

Before commencing business activities in India, it is recommended that organisations seek legal and taxation advice and obtain information on local market conditions that may impact setting up a business.

Prospective investors should

1990s, the process of setting up businesses and incorporation of entities has become more transparent and organised.

As well as adopting an appropriate legal and tax structure from inception, Australian companies are advised to be prepared for tough negotiations and to work through any legal issues.

Be firm, polite and creative, but be

Generally, leading Indian corporations are respectful of Intellectual Property (IP) Rights, with Australian companies likely to find similarities between Indian and Australian IP law and enforcement procedures.

However, politicians, bureaucrats and law enforcement officials often wield significant discretionary power and notable abuses have been brought to light.

Facilitation payments also known as ‘speed money’ are a common practice in India for obtaining licences, permits, sanctions, approvals, infrastructure and facilities from government departments and agencies. In some instances, third parties are used by businesses in order to avoid exposing their companies to direct involvement in negotiating bribes with government officials.

Austrade 13 28 78 www.austrade.gov.au Confederation of Indian Industry www.cii.in

consider the range of laws and policies covering foreign investment, taxation, accounting and employment law and also understand the commercial and corporate legal system in India. Since the economic liberalisation process began in the

prepared to say no, if the situation demands, is Austrade’s advice.

Indian banking financial statements conform to internationally recognised standards, but in some cases, are modified to suit Indian conditions.

Federation of Indian Chambers of Commerce & Industry http://ficci.in The Associated Chambers of Commerce and Industry of India www.assocham.org

Manufacturers’ Monthly JULY 2016 15

IT@MM Tackling the challenge of change with OI Implemented appropriately, Operational Intelligence (OI) can position a manufacturer to effectively deal with rapid change, as Peter Dickinson* reports.

T

HE ever-increasing pace of change is one of the greatest challenges facing manufacturing businesses.

Globalised economic conditions and market forces, technology, customer demands and the regulatory environment are all evolving at rates difficult to comprehend.

The challenge is particularly acute in the manufacturing and supply chain sector. New retail models, JIT inventories, and rising customer expectations mean companies must re-think internal processes. Approaches that might have worked well for years may no longer be good enough.

Manufacturers need to deal with much faster product lifecycles.

Where traditionally the timeline from initial idea to prototype,

16 JULY 2016 Manufacturers’ Monthly

manufacture and delivery might have been years, often it now has to be achieved within just months.

In the supply chain, the challenge is one of pace. Materials need to be delivered to manufacturers and finished product to retailers or end users more rapidly and efficiently than ever before.

The road to ‘Operational Intelligence’ While the term Business Intelligence (BI) is widely understood among firms in the sector, tackling these growing challenges requires something new. We call it Operational Intelligence (OI).

OI is a way in which an organisation can use systems to improve internal processes and

significantly boost service to customers. Implemented properly, OI can position an organisation to be able to effectively deal with rapid change.

At its heart, OI is all about ‘connecting the dots’ and involves two key components: having access to the right information at the right time and having the ability to build processes based on that data.

The data required for OI comes in many forms and is usually stored in different places within a company.

It might include customer orders, sales histories, staff HR records, outstanding invoices and service logs. By intelligently linking this data together and building and automating the processes that use it, powerful new ways of working can be achieved.

You can think of OI as being similar to the ‘heads up’ display used by fighter pilots. Rather than having to search for the information you need in different places, it’s presented to you in an easy-to-use and always up-to-date form. Each user can customise their display so it matches their particular requirements and workflow.

For example, a sales person who receives a new customer order can monitor stock levels in multiple warehouses, incoming deliveries and despatch schedules.

After filling the order, it can be automatically tracked as the goods move through the supply chain.

OI ensures the data displayed automatically changes as each step in the process is completed, keeping the sales person fully informed.

manmonthly.com.au

IT@MM Automated alerts can also be sent to the customer, keeping them updated on their order status and expected delivery times.

Meanwhile, another staff member might be checking rosters.

With their customised view constantly updated with the latest leave requests and personnel moves, they can ensure staffing levels are appropriate at all times.

Staff can use OI to obtain a realtime view based on their specific role and requirements. Informed decisions can then be made across the business enabling improved performance and better customer outcomes.

Establishing rules with OI For an OI strategy to work within an organisation, two key things must happen: • Data silos must be removed and all key business information held in a central repository • Rules must be established that trigger the next step in the business 03.06.16 process as10:34 data changes Projekt1 Seite 1

manmonthly.com.au

In many organisations, data relating to different areas - such as sales and inventory management resides in different, siloed systems.

For OI to work, these silos must be removed ideally by shifting to a single, integrated system for all functions.

Next, rules that dictate required actions must be developed and implemented. For example, raising

your business works to fit with the software.

While this might sound complex, automating one critical operational process should be enough to significantly enhance productivity.

You can then progressively embed operational intelligence across the fabric of your business with minimal disruption.

At its heart, OI is all about ‘connecting the dots’ and involves two key components: having access to the right information at the right time and having the ability to build processes based on that data. an alert when a key service standard isn’t met.

These rules must be carefully configured so they map exactly the requirements of the business; you shouldn’t have to change the way

Richer sources of information OI is something you can ‘do’ and not just something you can ‘buy’.

Once it has been adopted by an organisation, the resulting business benefits will quickly become apparent.

Staff will have access to richer sources of information, delivered at the moment it’s required, helping to streamline workflows, remove drudge work and eliminate errors.

This in turn improves accuracy and ensures key items don’t ‘fall through the cracks’ during busy periods, improving customer relationships as a result.

OI can also become a motivational tool for staff. Rather than having to spend time on repetitive, manual tasks, they can focus on activities that add more value to the business. The result is improved productivity and more engaged employees.

There has never been a more critical time for manufacturers to adopt OI. With the pace of change showing no sign of slowing, those that do will be best placed to meet the challenges of tomorrow.

Peter Dickinson is CEO of Greentree International; 1800 000 737, www.greentree.com

Manufacturers’ Monthly JULY 2016 17

Automation Smart devices rely on even smarter engineering

A

S industrial machines become more sophisticated and connected, the need for ‘smart engineering’ and detailed application knowledge continues to grow to increase productivity and safety, lower risk and reduce costs of compliance.

Peter Tomazic, senior solution consultant with Rockwell

Automatic Device Configuration is a feature that increases uptime by allowing the company’s Logix controller to automatically detect a replaced drive and download all configuration parameters, eliminating the need for manual reconfiguration.

While supplying the drives is the easy part, applying the correct

Advances in technologies such as the Industrial Internet of Things (IIoT), are enabling machines to get smarter and meet end-users networking, integration, diagnostics and intelligence demands.

Automation, argues that hardware is only 30-40 per cent of the solution.

“It is the domain knowledge on the application and how to apply the engineering that really makes the difference.

“Anyone can go and buy hardware and try to put it together but it is the application knowledge of how to engineer the hardware that really adds value to our customers operations,” said Tomazic.

Driving innovation Advances in technologies such as the Industrial Internet of Things (IIoT), are enabling machines to get smarter and meet end-users networking, integration, diagnostics and intelligence demands.

Motors and drives are gaining improved integration and connectivity, resulting in increased productivity, safety and asset management.

“Ethernet communications is now an important part of any application that involves drives because it provides full access to all the diagnostics within the drives, including drive parameters, status and additional features such as Automatic Device Configuration,” explained Tomazic.

18 JULY 2016 Manufacturers’ Monthly

engineering is critical for the system to run safely and effectively.

For example, if a drive on a crane has not been selected or engineered correctly the crane could drop its load resulting in safety and productivity risks.

Similarly, if a drive on a process line is not sized or engineered appropriately, the process will not run effectively.

Complying with safety Complying with safety standards plays an important role in reducing the risk of injuries and improving productivity.

Implementing the most appropriate standards and technologies also provide major improvements in manufacturing productivity, efficiency and the morale of personnel.

However, understanding the current risk level of one machine or an entire plant floor is a challenging task.

“Safeguarding a machine or entire plant requires a detailed safety assessment to be undertaken.

“Following the findings of the safety assessment we can then design a solution that meets the operational requirements of the plant or machine

and also address any safety risks,” said Tomazic.

Once the assessment is complete and the safety solution is designed and validated, the solution can then be integrated and commissioned to enhance productivity and workplace safety.

The Global Solutions team at Rockwell Automation provide end-toend safety solutions and can help at any stage of safeguarding a projectfrom training and standards through to validation and start-up.

Information and integration The IIoT continues to bridge the gap between the physical and virtual worlds; generating data that provides visibility into operational issues to help improve profitability and reliability.

Connected, smart machinery can enable secure, remote access services that reduce operational costs throughout the lifecycle of machinery.

“Our solutions are always capable of being connected into any enterprise system.”

“We recently integrated a historian system into a large crane

at a power station. This system provides information about how many times the hoist has worked and its maximum load which can be used to calculate end of lifecycle parameters.”

For example, if the crane is 25 years old but only works 2 per cent of the time then it still has more life in it,” explained Tomazic.

“These smart solutions provide more information and transparency to improve the lifespan of equipment and drive productivity throughout the enterprise.

“Smart engineering combined with detailed application knowledge can help increase machine speed for increased production or improve machine control to optimise quality as well as quantity.

“Supplying the smart devices and equipment is the easy part, but the application knowledge required to engineer them correctly to improve productivity, profitability and safety is where the real smarts come into play,” Tomazic said.

Rockwell Automation Australia 1800 762 593 www.rockwellautomation.com/en_AU Hardware said to be only 30-40% of engineering solutions.

manmonthly.com.au

OUR BIGGEST PERFORMER YET: AVERAGE 50% ENERGY SAVINGS The GAVSD+ up to 75kW not only delivers an average energy savings of 50%, it also comes with an IE4 high efficiency motor. All-in-all, this big capacity compressor will deliver unrivalled savings. How much could you save?

Calculate your savings and book your free energy audit today. Call 1800 023 469.

TR

DE

AU

S

ITE SERV -S

E IC

ON

Atlas Copco Compressors Australia www.atlascopco.com.au/compressorsaustralia

A LIA W

I

Industry4.0 From granola to granular – getting to the crunch with Industry 4.0 Australia gained a so-called seat at the table in April to be a part of the conversation on the next industrial revolution. Brent Balinski spoke to the AMGC’s managing director Jens Goennemann about where to next, and why it’s crucial to be involved.

M

ENTIONS of Industry 4.0 make some excited and others cynical. Jens Goennemann, managing director of Advanced Manufacturing Growth Centre and former head of Airbus in Australia, believes there are fragments of it here already, if you look in the right places.

These, according to Goennemann, give an indication of how manufacturing will be turned on its head in the future.

One example is a $25 “smart box” of premium, mass customised muesli mix, which symbolises the coming revolution, while also offering proof

20 JULY 2016 Manufacturers’ Monthly

that we can play our part.

“The order defines the product, the product gets an identity and that product tells the machines what the bag wants to have, as defined by the customer,” he told Manufacturers’ Monthly recently, referring to Mix My Muesli.

“The muesli box tells the machine what to do and not the other way around… Now Australia and the rest of the world will not survive on only Muesli 4.0, but it’s a tangible, earlyadopter example of how Industry 4.0 could look.”

The usefulness of the concept (sometimes called the Industrial

Internet or one of several other names) has been identified and the community around it has seen the need to develop common standards.

Many surveys have identified this as top priority for manufacturers.

Australia has begun the standardisation discussion with peak bodies in the world’s leading early adopter nations, the USA (Industrial Internet Consortium) and Germany (Plattform Industrie 4.).

Announced in April and representing Australia at the Hannover Messe exhibition, the PM’s Taskforce on Industry 4.0’s next step is to form five working

groups (focussed on architectures and norms, research and innovation, security, legal framework, and training) to mirror what Germany and the US have put in place at this stage.

Though it’s led by Siemens and SAP, whatever happens in regards to standardisation, it won’t be wed to one company’s technology platform.

“Here’s a massive chance that everybody speaks the same language in years to come, and this [shouldn’t] become a proprietary solution of any one company,” added Goennemann.

“It’s too important for that.”

It is, he said, a global discussion

manmonthly.com.au

Industry4.0 that is crucial for Australia to be a part of.

Some dismiss the concept as a fashion, and have questioned the need to invest heavily in solutions, which aren’t necessarily cheap.

According to research released in May by Boston Consulting Group, surveying over 600 German and American manufacturing firms, investment levels identified by these firms in enabling tech was estimated at between 7 per cent to 9 per cent of revenue. Not cheap.

BCG defines I4.0 technology as grouped into nine pillars (big data and analytics, autonomous robots, simulation, horizontal and vertical

manufacturers. After all, those wanting a successful future as exporters will frequently be doing business with such multinationals, whose supply chains dominate global trade.

Goennemann’s warning on dismissing the Fourth Industrial Revolution as a fashion is similar to BCG’s. He cites successful mass customisation-ready local SMEs like Cablex, which have invested in the required technology, as examples of what is needed for success.

It would be “arrogant” to dismiss Industry 4.0 as a buzzword or as over-hyped in its importance.

“As the global scale transition

As the global scale transition changes from traditional manufacturing to an Industry 4.0 environment, it would be lethal to not be on the front foot.

manmonthly.com.au

INTRODUCING OUR NEXT MASTERPIECE Arriving soon! Our new DZS vacuum and over-pressure claw pumps. This masterpiece is sure to leave an impression on you and your business.

Call 1800 023 469

M & PRE UU SS AC

DZS CLAW

V

changes from traditional manufacturing to an Industry 4.0 environment, it would be lethal to not be on the front foot,” believes Goennemann.

“And if a customer – who is always right – demands that and an Australian advanced manufacturer is not able to serve this customer, then that manufacturer may not be competitive. So it is a very dangerous attitude to disregard it as a fashion.”

Advanced Manufacturing Growth Centre www.amgc.org.au

UMPS EP UR

system integration, the industrial internet of things, cybersecurity, the cloud, additive manufacturing, and augmented reality.)

The impact of these technologies coming together properly will be huge in shifting skills required from workers, requiring “fundamentally new skills”, such as in data science and analytics.

It also suggested industry would see a paradigm shift similar in scale to introducing CAD in the 1990s, and this should be properly considered.

Of those who failed to roll out CAD – and a caution to those dismissing Industry 4.0 – the paper reads, “they were unable to participate in the standardised electronic data interchange between companies [and] many laggards dropped out of their business ecosystem entirely.”

The emphasis displayed by industrial giants such as GE and Siemens when it comes to the next industrial age is impossible to miss.

This doesn’t mean that there’s no relevance for smaller Australian

65

– 3 0 0 m3 / h

Industry 4.0 is a big part of the future of companies such as GE and Siemens (Image: Pinterest)

Manufacturers’ Monthly JULY 2016 21

INTERNATIONAL AFFAIRS Engineering Jihad: Is there a link between terrorism and engineers?

One would have thought that these days, terrorism has become so ingrained in our daily news and across the geo-political discourse that nothing could surprise us by this so-called modern phenomenon. However, terrorism continues to shock, and not just in the ways its barbaric acts manage to outrage civilised society, writes Branko Miletic.

F

IRSTLY, to be historically accurate, terrorism is not an issue simply confined to the modern times. The first recorded act by the Romans occured in the First Century AD, where the Zealots of Judea, also known as sicarii, or dagger-men, waged an underground campaign of murder and assassination of Roman occupation forces, as well as any Jews they felt had collaborated with the Romans.

Their motive was an uncompromising belief that they could not remain faithful to the dictates of Judaism while living under Roman rule.

Fast forward to late 19th Century Russian Anarchists, and then to modern-day statist-nationalists of various hues and persuasions which has seen terrorism utilised as a form of political discourse and a belief in the “propaganda of the deed”, with the most ‘successful’ (if that’s the right word) example being the 1914 assassination of the Austro-Hungarian Archduke by a Bosnian Serb nationalist - an event that eventually led to World War 1.

However, methods and results aside, there is one other thing about terrorism that stands out - that is, the preponderance of engineers among their ranks, especially when we look at the relatively recent scourge of Islamist terror the world is currently grappling with.

For example, in a 2009 paper, Diego

22 JULY 2016 Manufacturers’ Monthly

Gambetta, an Oxford sociologist, and Steffen Hertog, a political scientist at the London School of Economics, found that “among violent Islamists with a degree, those that have earned an engineering education are three to four times more frequent than we would expect...”

Citing their study of a group of 404 members of violent Islamist

groups across the Muslim world, Gambetta and Hertog tracked down 178 violent Islamists, and found that 78 of them or 44 per cent were engineers. Broadening the course of study to also include medicine and science, 56.7 per cent of their sample had studied these fields.

According to Gambetta and Hertog’s findings, this is a problem

that has become unique to violent Islamist groups in the Muslim world.

Among nonviolent Islamist groups, for example, engineers have been present, but to a far lesser degree than in the violent groups.

Among violent Islamist groups based in the West, education levels tend to be much lower on the whole.

Meanwhile, non-Muslim and left-wing terror groups like Germany’s Red Army Faction, Italy’s Red Brigades, the Basque ETA organisation and the cacophony of Latin American guerrilla groups such as Columbia’s FARC rebels include almost no engineers at all.

Among most anarchist groups, engineers are equally absent. Rightwing groups such as Turkey’s Grey Wolves or US-based militia groups might include some engineers, but they are very much in the minority.

For those on the frontlines of our seemingly never-ending ‘War on Terror’, this may seem like a quirky anomaly, however from a sociological aspect, it does beg some researchers to ponder a number of rather tantalising questions.

How does one go from being an engineering student to being a terrorist? Here, the likes of Gambetta and Hertog emphasise that there is a connection between the inherent conservatism of an engineer and the “disappointment of thwarted expectations.” Somewhere in all that manmonthly.com.au

INTERNATIONALAFFAIRS disillusionment, they claim, a terrorist is born.

Other questions that need answering include: Do engineering degrees select a certain kind of person that is predisposed toward acts of terror? Does something in these programs worsen some students’ tendency toward extremism? Or is the relationship between terrorism and engineering simply an intriguing correlation with no deeper meaning?

Getting back to Gambetta and Hertog, who have written a book on the subject, Engineers of Jihad: The Curious Connection Between Violent Extremism and Education, they found that most of the engineers in Islamic jihadist terror groups weren’t recruited into the movement; they joined by their own volition.

In fact, they argue in their book, the vast majority of engineers involved in 228 plots across the globe acted as group founders or leaders, with just 15 per cent being the actual bomb makers.

Delving deeper into the statistics, Gambetta and Hertog looked at nearly 500 Islamist extremists whose used violence to achieve their political aims dating back to the early 1970s. They then narrowed this list down to 207 people who pursued higher education and whose university majors could be determined. A pattern began to emerge whereby 93 of them or roughly 45 per cent had in fact studied engineering.

As if to underline these findings, one of the most infamous bomb makers for the Palestinian Hamas terror group during the 1990s went by the nom de guerre of “The Engineer”.

What’s more, the frequency of engineers-cum-terrorists was found to far exceed what would be expected statistically since from the 19 countries represented in the sample, fewer than 12 per cent of all students in those countries actually had or currently were studying engineering.

Delving even further afield, the researchers found that of the 40 jihadists who studied at universities abroad, 27 happened to have studied engineering. In another study, comprising 71 extremists who were born or grew up in Western countries, 32 were engineers. manmonthly.com.au

As an example, Khalid Sheikh Mohammed and Mohamed Atta, 9/11 mastermind and ringleader respectively studied mechanical engineering, electrical engineering graduate Mohammad Youssef Abdulazeez opened fire on two military facilities in Tennessee in the US, killing five soldiers. Bali bomber Imam Samudra was an engineer, while Kafeel Ahmed, who tried to bomb Glasgow Airport in 2007 received a degree in aeronautical engineering from Queens University in Belfast.

A 2014 paper by Sarah Brockhoff from the University of Freiburg - College of Economics and Behavioural Sciences argued that education often helps reduce terrorism in nations with sound institutions and dynamic economies, but that when the opposite

and sociology pointed out that, “Engineering education fosters a culture of disengagement that defines public welfare concerns as tangential to what it means to practice engineering.”

At the same time, many prominent researchers as well as engineering educators find this argument at best, dubious, at worst odious, and any attempt of ‘vocational profiling’ to be quite tenuous.

According to Norman L. Fortenberry, the executive director of the American Society for Engineering Education, engineering degrees emphasise human needs, contexts, and interactions. Far from fostering rigid thinking, he notes, they are designed to “build tolerance for ambiguity.”

Engineering, he says, is not a march to a single correct answer

As if to underline these findings, one of the most infamous bomb makers for the Palestinian Hamas terror group during the 1990s went by the nom de guerre of “The Engineer”. conditions apply, education may fuel violent extremism. In other words, education can either halt or hasten the descent into terrorism, depending on the context or, for that matter, the time.

So are engineers more likely to join the ranks of terror groups? The answer depends on who you talk to.

The chief reason so many violent extremists are engineers, Gambetta and Hertog think, is that these engineering studies appeal to a certain kind of mind. “It seems they’re selected rather than being shaped,” Hertog said. A college education can’t completely reframe how people think, he duly pointed out.

However, he also noted that, “What you can do is influence the social environment that allows some problematic tendencies to emerge.”

Pushing these notions one step further, Erin A. Cech, an assistant professor of sociology at Rice University, who earned undergraduate degrees in electrical engineering

but a quest to find a satisfactory solution amid competing priorities and constraints, including social ones. Understanding the social forces that shape these priorities is crucial, he notes, to becoming a successful engineer. The task is essentially sociological, he argues,

but acknowledging at the same, “To be fair, we don’t teach sociology.”

While that may well be part of the overall problem, it is worth pointing out that on a global basis, only a very, very tiny - let’s call it a micro minority of engineers are ever likely to become radicalised and/or violent terrorists, whether of the Islamist variety or of the neo-Nazi / statist-nationalist bent.

Then again, this could also all be part of an interesting sociodemographic cycle: the leftist terrorist groups of the 1960s and 1980s such as the Red Brigades, Direct Action or even the IRA involved a disproportionate number of operatives with humanities, arts or social sciences as an educational background.

Going back to the late 1900s, the violently-disposed Russian Anarchists also shared this interest in liberal arts and humanities for their educational foundation.

Whatever the answer is, one thing is certain: across the ages, education has been a path to enlightenment and social mobility. Any links between one vocational group or another with violence is both purely coincidental and statistically insignificant.

As Eli Wiesel, the recentlydeceased 1986 Nobel Peace Prize laureate argued after the terrorist attacks on the US on September 11, 2001: “What is it that seduces some young people to terrorism? It simplifies things. The fanatic has no questions, only answers. Education is the way to eliminate terrorism.”

Manufacturers’ Monthly JULY 2016 23

Defence MANUFACTURING Feeling the need for design speed in submarines The transfer of world-leading technologies to Australia’s manufacturers was part of the lobbying efforts from Future Submarine contestants. Brent Balinski spoke to Dassault Systèmes cofounder Philippe Forrestier about what the victorious French team brings to the table.

T

HE contract to design Australia’s new submarines was terrific news for French defence company DCNS, but it was also a major win for software company Dassault Systèmes.

A pioneer in aerospace and with customers that includes Boeing, Airbus and Lockheed Martin, it is also used by BMW, in consumer goods, and even virtual cities, with a claimed $1.3 trillion in projects underway using its software.

“Note that we didn’t do anything in order to deny our competition; we prefer the facts to show the reality,” the company’s co-founder and its Executive Vice President, Philippe Forestier, told Manufacturers’ Monthly earlier this month.

“The reality is there is $1.3 trillion of projects using our solution end-to-end to build the most prestigious solutions in the world, whatever we are talking about: airplanes, cars, submarines, frigates and so on.”

The competition to design the 12 Future Submarines, Australia’s biggest ever defence contract, was intense. Forrestier acknowledges an “underlying competition” subtext among the PLM providers in this.

For Dassault, being a part of the winning bid is good news for its attempt to claim more of the naval market, where it is a relative newcomer, though is gaining a foothold in shipyards in Korea and elsewhere.

“When the Chinese recently selected their platform for their ships, they selected the 3DExperience platform from Dassault Systemes,” he said.

“DCNS who were also willing to go to the next plateau at the end of last year, they chose our solution as well.”

Dassault announced a naval defence partnership with DCNS in February. For the Adelaide-built submarines, it will provide the

24 JULY 2016 Manufacturers’ Monthly

“digital twin” of every single part.

Everything will be designed, built and tested in the virtual before the real world using Dassault’s 3DExperience platform.

The job is one involving extreme complexity, with challenges of integration, communication and collaboration on the cyber and physical worlds, as well as converting huge amounts of accumulated information into dashboard displays. Then there is the job of only sharing the IP that is necessary to share between the many participants.

“The same way as when Boeing and Airbus are using the same suppliers they don’t want to provide to the suppliers all the different secrets of those companies, they provide what is necessary and they collaborate is what is absolutely necessary and these solutions allow that,” Forestier explained.

Among the underlying PLM

competition was a pitch for who would spread the most benefit for Australian manufacturers. The German team frequently highlighted the potential to migrate the country’s Industry 4.0 expertise over here, helping defence suppliers and others make the leap to the next industrial age.

Dassault contends that it will do the exact same thing, and is involved at the highest level in Industry 4.0 (and the same concept under different titles across locations) in Germany, France, Japan and elsewhere.

Its sloganeering is around moving to the age of experience, with the digital thread between products and consumers encouraging mass customisation. As with its rival Siemens, Dassault pitches the adoption of its proprietary PLM solutions by Australian supplier companies as bringing huge benefits.

“Manufacturing in our solutions

The submarine contest featured an “underlying competition” on PLM software

is extremely important, because we can do basically the whole chain up to the shop floor,” he said.

“It will be extremely important for the success of this.”

“But I want to mention that it’s not only the manufacturing solutions for the different industries, it’s also the capabilities for the Tier 3, Tier 4 suppliers, even smaller than that, to do some work using the techniques that are based on the same very powerful solutions provided for the biggest enterprises but are used by small companies that are being created by dozens to make sure that we can sustain the evolution of the jobs.”

The first submarine won’t be built until nearly 2030. We can be certain that progress will be watched closely by disappointed rivals.

Forrestier lists a collection of behind-schedule shipbuilding projects that use a rival PLM provider. If there are any Future Submarine delays, Dassault’s competitors will be sure to highlight these when pitching to potential clients.

Obviously, Dassault will be doing its best to make sure the software collaboration side of things is as smooth as possible.

It wants its stature in shipbuilding to catch up to aerospace. Boeing’s 777, for example, was the first ever wholly-digitally designed aircraft, enabled by Dassault’s CATIA toolset.

“We cannot say honestly that we are as dominant in some ways, like we are in the aerospace industries, with all the aircraft manufacturers, but we are on our way,” said Forrestier.

“I think we are progressing dramatically in all domains. This agreement with DCNS is something that will help us to move ahead in that market.”

Dassault Systemes www.3ds.com/anz manmonthly.com.au

LaserBond® surface engineering technologies can significantly extend your pump’s operating lifespan by reducing wear to its components from abrasive and corrosive fluids.

Three times longer life for pump components significantly lowers production costs.

High fluid velocity means wear, erosion and

Production equipment and components surface-

corrosion at high impact points like pump

engineered by Laserbond® will operate in-situ for

impellers, valve seats and stems, and bends and

longer and perform more efficiently. An extended

elbows in pipe work systems. A worn component

operating life increases the cycle time for regular

means inefficiency and delays. We work with

maintenance and decreases maintenance costs.

both pump OEMs and end-users to produce

Pump impellors, pump shafts, housings and seal

cost-efficient long-wearing solutions to high wear

areas are returned to original specification with

components. Our unique surface engineering

laser cladding and machining. LaserBond® surface

technologies - developed to increase resistance

engineering improves and maintains operating

to wear and corrosion – optimise component

efficiency, improves the overall process, and cuts

and system performance so they work better, last

production loss.

longer and cost you less.

Find out more at laserbond.com.au/fluid_handling

Contact LaserBond now and our Tech Team (experienced engineers) will recommend a cost-saving 3 x longer wear-life solution.

LaserBond Limited | www.laserbond.com.au Sydney | Adelaide | Freecall 1 300 527 372 International +612 4631 4500 | Fax +612 4631 4555 Email info@laserbond.com.au

Quality 9001, Environment 14001, Health & Safety 4801 14640 A4+

Management Survey reveals most workers unhappy Keeping salary increases to a minimum can be a costly exercise for manufacturers, as Alan Johnson reports.

F

OR manufacturers, in fact any Australian business, having a happy and content workforce is vital to the success of the company.

So it will be disappointing for readers to hear that four out of every five Australians are unhappy where they work and are planning to leave their current role in search of new challenges, and more money.

AIM’s (Australian Institute of Management) 2016 National Salary Survey makes sobering reading.

The findings show that Australian living standards are now under more pressure than ever before with wage growth falling in line with the rate of inflation, a statistic rarely seen in Australia over the past three decades.

Now in its 52nd year, AIM’s 2016 survey of more than 500 Australian organisations, covering about 25,000 employees and around 270 job roles, found that the overall salary increase is currently sitting at three per cent, which is a decrease from the 3.4 per cent reported in 2015 and the lowest reported percentage since 2012, dropping 1.1 per cent overall in four years.

Sam Bell, AIM’s GM for Policy & Advocacy, describes it as a significant decline especially as it is forecasted to continue in 2017 in many industries, especially in Queensland and WA, both of which have been affected by the mining downturn.

“For the last decade we have been accustomed to expect to salary increases of four to five per cent.”

But he admits some industries do better than others in good times and bad times.

“But now employees are receiving two to three per cent on average, which is causing some movement in the market because people are expecting greater financial rewards,” Bell said.

The survey reveals four out of 26 JULY 2016 Manufacturers’ Monthly

five people (82 per cent) are looking for new challenges, with two thirds looking for new opportunities within their industry. More than half (56.5 per cent) cited limited career advancement opportunities with 44.4 per cent looking for better financial rewards.

Bell told Manufacturers’ Monthly this situation is caused by two major issues.

“Firstly the slower economic conditions are contributing to less career advancement. In the good times people were getting regular promotions, but now with the slower economy, those internal promotions are not happening.

“People are not moving up the ladder as fast as they would like, so they look at opportunities outside their workplace, often at competitors, to get that promotion.”

Secondly, Bell says, employees are not happy with the two to three per cent salary increase and are changing jobs to get more, which is a costly exercise for companies.

Cost of recruiting Getting new people is fine, but what many manufacturers don’t realise is that the cost of recruiting a new staff member is around $26,400, which includes the exit process of the employee, the recruitment of a new employee and the training of him/her to fulfil the role.

“It’s a significant amount, and if they are leaving due to lack of promotion or salary increase, companies have to realise that there is a big cost to replace them.”

“I don’t think many managers realise how much it costs to replace someone, plus the disruption that causes to the business.”

David Pich, AIM’s CEO, says retaining staff is no easy feat.

“Employees can become restless in roles that have limited career advancements or where they don’t enjoy their time at work.

GENERAL MANAGER - Manufacturing DIVISION/REGION, average package Food/Beverage/Tobacco

$243,989

Chemical/Petroleum

$218,404

Metal/Automotive

$206,662

Other

$223,262 R&D Manager - Manufacturing

Food/Beverage/Tobacco

134,817

Chemical/Petroleum

136,611

Metal/Automotive

163,151

Other

165,130 Production Manager

Food/Beverage/Tobacco

144,510

Chemical/Petroleum

155,252

Metal/Automotive

134,733

Other

132,682 Maint fitter

Food/Beverage/Tobacco

80,737 92

Chemical/Petroleum

73,116

Metal/Automotive

76,441

Manufacturing

77,234 Machine operator

Food/Beverage/Tobacco

$54,857

Chemical/Petroleum

$52,778

Metal/Automotive

$57,209

Manufacturing - Other

$47,384 manmonthly.com.au

Management “Combine that with a volatile property and rental market and the pressure to contribute more to their superannuation fund, it’s no wonder staff are becoming disillusioned and feel the need to move jobs as a perceived guarantee to a salary increase,” said Pich.

However, the proportion of employees who are salary sacrificing has dropped across the board since last year, suggesting Australian employees are putting less focus on their retirement, choosing instead to use their disposable incomes to maintain their current standard of living.

Pich encourages business leaders to reassess their current pay model and suggests creating a positive and inspiring workplace culture to decrease staff turnover and retain human resource.

“People don’t leave companies; they leave leaders. Great managers and leaders make decisions that impact people’s lives and that

impact can be felt well beyond the workplace.

“We spend about a third of our working-age lives doing just that – working. So it is vital our experiences in the workplace are positive as they impact on our overall well-being and on society as a whole.

“At AIM, we’re constantly encouraging our Members to invest in building a positive workplace culture, by having open streams of conversation and offering training and professional development support,” Pich said.

Manufacturing According to the survey, salaries overall for the manufacturing sector have fallen more than the average.

Bell pointed out that while salary growth in general has fallen from 4.2 per cent to three per cent on average over the past four years, the manufacturing sector has fallen from 4.62 per cent to 3.07 per cent,

which is almost in line with the average salary increase.

“Next year, those in the manufacturing industry expect salary increases to remain fairly flat at three per cent, unlike other sectors who predict further falls.”

Across the manufacturing industry, AIM measures the Food, Beverage and Tobacco; Chemical and petroleum, Metal and Automotive, and Other Manufacturing sectors.

“When broken down for example, Mechanical Engineering Managers have seen an increase of about five per cent, while employees in the Chemical and Engineering have remained flat at around four per cent,” Bell said.

However, the survey shows workers in the automotive sector have seen a decline to 2.7 per cent growth, dragging the overall figure down.

In general employment terms, Bell says he is seeing a significant increase in consultants and

temporary workers, rather than full time permanent employees.

“There is strong trend of companies bringing in people for a specific project and time period rather than a fulltime employee.”

When it comes to working conditions, Bell said a company’s workplace culture is very important for employees, followed by learning and development and flexible working conditions at number two and three respectively.

“A work life balance is very important for employees.”

The survey found 66.8 per cent of Australian employees left a current job to start a similar role at another organisation, and revealed that businesses are worried workplace culture is to blame for this shift, with 63.7 per cent citing this as the human resource issue they are most concerned about.

AIM (Australian Institute of Management) 1300 362 631 www.aim.com.au

HEAT TREATMENT BAR PEELING BRIGHT DRAWING PRECISION GRINDING CHROME PLATING ®

®

®

P: +61-2-4964 0100

manmonthly.com.au

|

F: +61-2-4964 9944

|

milltechmartinbright.com

|

Email: sales@milltechmartinbright.com

Manufacturers’ Monthly JULY 2016 27

Warehousing To Slot or not to Slot?

With warehouse product slotting able to reduce labour costs by up to 20 per cent, at no cost, it’s surprising not all manufacturers are aware of the term. John Monck* writes.

T

O those who are not in the know, slotting is a warehouse term that refers to intentionally placing products within the warehouse storage medium to create warehouse efficiencies.

Let’s consider what an essential aspect of good warehouse practise, product slotting benefits can achieve.

Basically, the purpose of a warehouse is to provide storage of products to meet customer demands and inventory allows the decoupling of demand and supply.

Often this inventory is used to smooth out the supply chain from disruptions (whatever they might be).

Whilst there are variations to the operations of a warehouse; if we consider the direct labour component only, then products need to generally go through the following processes of receiving, put-away, storage,

28 JULY 2016 Manufacturers’ Monthly

replenishment, picking, staging and dispatch of products to customers.

Of course some warehouses may skip some of these steps but for those that need to pick products and dispatch products to meet customer requirements, the location of products within the warehouse significantly affects the efficient warehouse operations.

Vilfredo Federico Damaso Pareto was an Italian economist and the Pareto principal is named after him, he observed that 80 per cent of Italy’s wealth belonged to only 20 per cent of the population and since then it has been found many things in life are not distributed evenly.

This is often the case with a portfolio of products that we store in our warehouses and sell to customers, usually a smaller percentage of the products (e.g. 20 per cent) make up a

greater percentage of what we sell (80 per cent).

So those faster moving products using this principle we can categorise as A, and so on, through B and to C the slower the sales rate is, we call this ABC analysis.

Product travel requirements Most warehouses within the Australian context at least, rely on receiving goods and transporting them with forklifts between the various operations.

Direct Travel, is the travel from the receiving dock to put away and from the end of the pick assignment to dock, where we get maximum travel speed, distance travelled is two times the assignment.

Preambulation is travel within a picking medium, resulting in lower travel speeds, which is affected by the

number of products being picked and impacted by the distance between product storage locations.

The overall travel distance then is determined by the combined amount of direct and perambulation travel.

Then for a given distance and at a given speed, by calculation we can determine the time taken for a specific warehouse operation.

In better run warehouses these can be compared against engineered work standards for each task type and operators benchmarked against the work standards.

Because travel is an activity, it is sometimes difficult to see the hidden waste within that activity; excessive pick travel might be occurring by not having products in the best position.

This extra time can be related to direct labour costs as well as the increased picking time, measured by pick rate (units picked per standard person hour).

Unfortunately at best, I have seen businesses just add more pickers when they need to get through the work and that adds costs or even worse, missing customer service targets.

Also when products are not in the right location and potentially not in the right quantities, even extra wait time is introduced while pickers are waiting on replenishment of the pick face, this results in extra touches of the product.

Product damage is another symptom, although most experienced operators can avoid this.

Another symptom slotting can resolve, is lack of warehouse capacity.

Let’s face it, we usually keep adding products to the range for sale and they all take more and more locations to store this extra stock.

Slotting can consider the amount of cube required and inexpensively often add smaller slots more appropriate for the product stocking requirements.

All of these symptoms potentially are a sign that a slotting exercise is overdue. manmonthly.com.au

Warehousing Product slotting There are various forms of slotting approaches; macro slotting or profiling are about overall warehouse layout, whereas micro slotting is the detailed placement of product along the pick path relative to the final destination or rally point.

To do this analysis, considerations of the product characteristics such as product velocity, dimensions, cube, crushability, toxicity etc. need to be factored into the constraints, along with specific picking strategies that will be unique to your warehouse.

Examples include discrete pick (as assignment per order), consolidated orders, and so on.

The storage medium and its specific relationship to the rally point, often a staging area prior to dispatch and finally developing the rules by which to slot specific products to specific locations.

Simply put, we are looking to place products in the right location

to minimise the distance travelled whilst ensuring other constraints are observed.

So placing faster moving products closer to the rally point, results in less distance travelled’ less labour time, and hence cost savings.

So using ABC analysis we would then place the A products close to rally point and progressively the B and C products further away, thus reducing travel distance.

Slotting benefits Product slotting means savings in direct labour, more capable picking capacity and possibly better warehouse utilisation and reduced product damage, who wouldn’t want all that, so what’s the catch?

Well I’ll let you in on a pleasant surprise, this is one of the few cost saving ideas that you can implement in your current facility whilst making no changes to infrastructure, although there may be further benefits to do that.

You can achieve the benefits, by simply rearranging products, within existing storage media, to reduce travel distance and hence resolve some of the symptoms described earlier.

For those prudent enough to undertake such an exercise, cost savings are usually between 10 per cent to 20 per cent of direct labour.

So what’s the plan? Remember the old adage; if you fail to plan, you plan to fail.

All too often in our busy work lives there is always something urgent to occupy our days.

When we walk through the warehouse there is always plenty of activity, but because this is hidden waste you have to look hard for the symptoms.

Talk to your team about product placement within locations, see what they have done in reviewing slotting; ask to see their plan.

Oh, and while you could re-slot the whole warehouse, some operators

just do it through the pick face replenishment process and maintain the operation through movements that were required in any case.

Conclusion Warehouse managers should have a product location maintenance plan to ensure they are actively managing the product placement within their warehouse.

This will ensure that consideration for product placement can happen, particularly during times of change such as the introduction of new products or changes in sales product mix.

In any case go for a walk and have a look at your operations and see if you can find the hidden waste, maybe have a look where some fast moving products are located and determine if they could be closer to the facility centre of gravity. *John Monck is a supply chain professional with Logistics Bureau; 02 9232 8800, www.logisticsbureau.com

SMC Australia | New Zealand

Where meticulous care and deep respect is part of the process, perfection follows naturally The ancient art form of the tea ceremony still thrives in modern-day Japan. It is a refined ritual that celebrates a perfect moment in time. The ceremony places high value on attention to detail with respectful exchange between host and guest.

At SMC ANZ we manifest this sense of honour to our clients. We respect our clients’ business and our product quality, unmatched commercial support and commitment to manufacturing in ANZ is evidence of that.

With more than 5 000 sales engineers and 1 700 design engineers globally, SMC’s sales force is the largest in the industry. We have 400 sales offices in 84 countries on 5 continents. This means that we are always close to our customers.

Contact us for a consultation: AU – 1800 763 862 or AUsales@smcanz.com

positiv/graffictraffic/MM/0716

NZ – 0800 1320 762 or NZsales@smcanz.com

SMC-ANZ_0716_MM.indd 1

manmonthly.com.au

Join the conversation:

SMC Pneumatics Australia | New Zealand Group

www.smcworld.com

2016/06/22 01:30:41 PM

Manufacturers’ Monthly JULY 2016 29

Logistics 5 disruptive trends that will change the face of logistics in 2016 Logistics is on the move; new technology and the advent of big data and mobile applications are changing the face of eCommerce fulfilment. The CeMAT team put together 5 trends that will help businesses ensure their 2016 supply chain management goes ahead without a hitch. up the benefits of leveraging supply chain information against the ability to implement improvements to their logistics strategy.

4. Flexible and cloud based warehouse management

1.Same-day delivery for small eCommerce transactions

2. Amazon to lead the charge with Drone delivery

Once touted impossible to fulfil and too expensive for businesses to offer on a large scale, same-day delivery is proving to be one of the biggest trends for 2016.

Improvements to eCommerce and increasing buyer power have set the bar for same-day delivery or alternatively, express delivery options.

Competitive delivery has become one of the driving factors as to whether or not a consumer will commit to the purchase, and it has been known for a few years that unsuitable delivery options are a big cause of the dreaded abandoned cart.

Amazon has once again led the charge with innovative delivery options by revealing how the Prime Air will deliver packages within a very small window.

Amazon plans to deploy an army of drones that will be able to deliver packages within as little a timeframe as 30 minutes. Amazon intends to limit the drones to a 10-mile radius and they will only be able to handle a payload of 2.2kg.

Drone delivery may be accessible to online eCommerce giants like Amazon, but it was reported late last year that Australia Post won’t be able to deliver mail or parcels by drone for another 10 years.

30 JULY 2016 Manufacturers’ Monthly

3. The application of big data for efficient supply chain management Analysing and interpreting data in real-time can assist enterprises with assessing ways of delivering better services for their customers, and the supply chain is no exception to this trend. In short, big data can improve supply chain design and management by reducing costs and delivery times.

Although it is not a new idea for 2016, retailers that are able to capture and analyse transactional transportation management data in collaboration with any third-party providers will see great savings moving into the future.

It will be especially important for logistics managers to truly weigh

The cloud has proven to be one of the most important tools for business processes, as it provides anywhereanytime access to important data.

On-premises applications are more commonly being replaced by cloud applications, providing businesses with a more efficient and cheaper alternative.

Cloud based services will help improve inventory management, mobile sales and mobile field services moving into the future.

Further, the integration of mobile devices that can talk to any device, allow staff to collect, analyse and report information simply by using their mobile phones.

Wearables will also begin to improve warehousing, sales and mobile services.

5. Real-time inventory management The future of purchasing is set to drastically change with the advent of mobile technology. Customers will soon be able to pick up an item and walk out of the store with no direct transaction taking place, as the price of the item will be automatically charged to their card via real-time inventory management.

This technology will start to be implemented as large retailers innovate their mobile point of sale systems, beacons and sensors, so that customers can experience a more modern purchasing transaction.

manmonthly.com.au

EnergyMANAGEMENT Solar as a Service providing cheap energy for industry Australian businesses within the manufacturing and process industries often highlight energy costs as the second highest burden their businesses face behind raw material costs.

W

HILE solar has long been an option for manufacturing business to help reduce their energy costs, until now the costs of installing a large enough system to meet their energy needs has been too high for most.

Now with the release of Origin’s Solar as a Service, companies are now able to enjoy the benefits of low cost solar energy without having to make the capital investment in the solar system.

Richard Parker, General Manager of Townsville Engineering is one business owner that has been considering going solar since 2014 but never pursued it until Origin launched Solar as a Service.

Origin’s Solar as a Service option allowed Richard to install an 80kW solar system on his roof without any capital investment in the system.

The system is generating a third of the businesses’ energy needs at a rate much lower than what they are paying for electricity from the grid.

“The whole process has been really easy since Origin came back to us with this new option. We’re excited to see the new electricity savings, but are also glad that we can find a way to be environmentally conscious,” he says.

Townsville Engineering’s premises covers over 5,000 square meters and services local government operations, mining companies, bulk-handling facilities and maintaining an export line in mining equipment. Richard’s decision to finally move onto an efficient solar system is not only beneficial to the organisation, but also the community.

“As a business that operates for almost 10 hours a day, this is a great service. I feel very positive about the change and can’t see any negatives.”

According to Phil Mackey, General Manager, Solar and Emerging Business, Origin’s “Solar as a Service provides business with a simple way to save money on their

32 JULY 2016 Manufacturers’ Monthly

energy bills by providing them with access to low cost solar energy at a lower price than they are presently paying for their grid energy.”

“Plus the business does not have

businesses can keep the same solar electricity rate for up to 15 years, protecting them against any possible future electricity price hikes, or they can choose a CPI indexed rate.

Under Solar as a Service, businesses can keep the same solar electricity rate for up to 15 years, protecting them against any possible future electricity price hikes, or they can choose a CPI indexed rate. to pay for the system or worry about ongoing maintenance as Origin owns the system and looks after all this.

This option is ideal for companies with unshaded roof space, who plan to be in their premises for the long term and operate during the day.”

Under Solar as a Service,

“We know from customers that being more environmentally friendly is of concern - especially those who use energy and operate on a 24/7 basis. So offering Solar as a Service is enabling companies to cross two things off their list: saving energy bill costs and doing their

bit for the environment,” says Phil Mackey, General Manager, Solar and Emerging Business, Origin.

The amount that each business can save will depend on their daytime energy needs, roof space, the size of the system installed, the length of their Solar as a Service agreement as well as what happens more generally with retail electricity rates. The customer doesn’t need to be with Origin for grid supplied electricity to take up the offer.

“The service is something that adds great benefit to not only a company’s cash flow but also to their green credentials too. And, at the end of the day, it gives companies a solution for some of their biggest and ongoing considerations,” Mackey concluded.

Origin Energy www.originenergy.com.au 13 23 34

manmonthly.com.au

TICKETS NOW AVAILABLE! 2016

11th August, 2016 – MCG, Melbourne For more information visit www.paceawards.com.au

Robotics&Automation

Industry 5.0 concept creating factories of the future While there is a global movement built around creating smart, connected factories of the future, a new trend towards putting the human touch back in production is transforming the manufacturing process.

R

OBOTS brandish the tools and perform all tasks while human workers oversee operations. Supported by smart technology, humans and machines collaborate simultaneously on the factory floor.

Believe it or not, this kind of futuristic scenario is already taking place in factories across the world.

This phenomenon, referred to as “Industry 5.0” reflects a growing view amongst manufacturers of the need to respond to increasing demand amongst customers for a higher degree of individualisation. In fact, 85 per cent of manufacturers consider the “connected workforce” – that is robots and humans working together being routine in manufacturing by 2020.

Moreover, an overwhelming majority of manufacturers now describe it as an essential element in their business strategy[1]

34 JULY 2016 Manufacturers’ Monthly

The benefits of a collaborative man and machine workforce 1. Customisation While robots are excellent at manufacturing standard products in standardised processes in a high production volume, customising or personalising each and every product can be a challengein situations where robots will require guidance. Hence, maintaining the human touch within production processes is critical.

In production processes, automation can be used to its fullest potential only when there is a spark of human creativity influencing the processes. On its own, an automated production with traditional industrial robots will do only what it is being told – often only after long and strenuous programming efforts.

Collaborative robots or “cobots”,

however, work in sync with human employees.

In this situation, man and machine complement each other, as the human can be responsible for customisation, while the robot processes the product or prepares it for human attention. In this way, the employee is empowered and uses the cobot as a multi-functional tool, as with a screwdriver, packaging device or palletiser.

2. Job creation A recent report into skills gaps by Deloitte suggests that in the next decade, there will be 3.4 million jobs with only 1.4 million qualified workers to fill them[2]. Robots are perfectly matched for many of these role and cobots in particular can work side-by-side with human workers. Cobots are useful because they can take over mundane,

repetitive and dangerous jobs while human workers move into highervalue positions.

The biggest threat to job security is the failure of a business to remain competitive and automation offers companies a competitive advantage through higher and more consistent product quality, greater output and lower overall costs. In the food industry alone, robots are expected to create 70,000-90,000 jobs worldwide between 2017 and 2020.[3] Cobots compared to other industrial robots can increase employment opportunities within businesses as they can increase productivity and encourage upgraded skillsets. Rather than replacing their human counterparts, these devices work alongside people in manufacturing and processing tasks.

Moreover, as manufacturers aim manmonthly.com.au

Robotics &Automation to increase outputs and develop new product lines, cobots can help them multiply their workforce and transition employees from monotonous positions into roles with greater job satisfaction and compensation.

3.Better roles for human workers The cobot is not designed to replace the human workforce, but to take over strenuous or even dangerous tasks. As a result, human employees can use their creativity to turn to more complex projects. For instance, when robots take over minor assembly tasks, employees can move on to more nuanced assignments that require human ingenuity.

For example, at Australian plastic injection moulding company, Prysm Industries workers used to stand in one spot for hours at a

Undoubtedly, the connected and collaborative workforce presents vast opportunities to boost manufacturing productivity and innovation. It also presents the prospect of enhancing safety and satisfaction in the workplace, while enabling more exciting roles for human workers and stimulating job growth itself.

Finally, as manufacturing processes evolve to become more smart and connected, less agile competitors that are too slow to adapt will be left behind.

Manufacturers must realise that collaborative factories offer not only the potential to improve operational efficiency and other previously mentioned benefits, but also the potential to reduce rising labour costs in increasingly competitive markets.

While robots are excellent at manufacturing standard products in standardised processes in a high production volume, customising or personalising each and every product can be a challenge where robots will require guidance.

Hence, maintaining the human touch within production processes is critical. time to label products every 6-7 seconds. After choosing to deploy a Universal Robots robotic arm, the manufacturer could automate this repetitive activity and free up staff to take on other responsibilities.

With the labelling tasks taken care of, employees are now able to focus on running several more machines and can engage in more varied tasks across the factory floor.

Staff members feel a sense of pride from having learned to operate the robot and their ability to work on other activities has increased their job satisfaction. In addition, Prysm now saves $550 in labelling expenses every day that the robot is in action. manmonthly.com.au

Shermine Gotfredsen is the General Manager of Universal Robots APAC .

[1] Accenture, ‘Machine Dreams: making the most of the Connected Industrial Workforce’,https://www. accenture.com/us-en/_acnmedia/PDF13/Accenture-Connected-IndustrialWorkforce-Research [2] Deloitte, ‘The skills gap in US manufacturing 2015-2025 outlook’,http://www2.deloitte.com/ us/en/pages/manufacturing/articles/ boiling-point-the-skills-gap-in-usmanufacturing.html [3] International federation of Robotics, ‘Positive Impact of Industrial Robots on Employment’,http://www. ifr.org/uploads/media/Update_Study_ Robot_creates_Jobs_2013.pdf Manufacturers’ Monthly JULY 2016 35

Innovation Geofabrics’ future grounded in innovation As many firms will tell you, “business as usual” usually means falling behind. Brent Balinski spoke to senior management at Geofabrics Australasia about how they look to all employees to help refresh their operations.

C

HALLENGES and opportunities often get mentioned together. For Geofabrics Australasia, a big example of the former was the end of the mining boom; the latter is something the whole company spends a lot of effort considering.

“It’s very, very similar to many other companies manufacturing in Australia,” Brendan Swifte, managing director of Geofabrics, told Manufacturers’ Monthly at the company’s Albury factory recently.

It saw the geosynthetics company’s sales fall from a peak of $150 million. They have recovered since, but are around $120 million – $130 million.

Issues of “unblocking arteries” to keep up with demand were replaced by different ones.

“You find yourself having to regenerate,” he added.

“You have to come up with new ideas to stay relevant.”

The company – a recent champion in this magazine’s Endeavour Awards’ Australian Industrial Product of The Year category – decided to take a more systematic approach to that muchused word, innovation. It narrowed things down to three genres: portfolio and products, profit and productivity, and pricing and processes.

Innovation is, of course, about much more than new products.

In this case, it meant considering things including systems, definition of its markets, how its sells, and how it engages with the customer, explained the company’s chief operating and finance officer, Dennis Grech.

Formerly CFO at auto interiors specialist Futuris Automotive, he draws on the example of one of their high-profile clients: Tesla Motors.

How it interacts with its customers, which is decidedly different from 36 JULY 2016 Manufacturers’ Monthly

the standard car yard experience, interested Grech as much as their sleek electric sportscars.

“You don’t go kicking a tyre and having a look at a vehicle in a car yard, you actually go into a showroom, which is in a department store – it’s between a jewellery store and a clothes store and there you’ve got a Tesla vehicle… It’s a department store experience,” he told Manufacturers’ Monthly.

“It’s not just about manufacturing, it’s not just about selling. It’s actually that end-toend process of how you engage with the customer. How do we deliver product to them? How do we allow them to order? How do we allow them to pay for that product?”

its main output and runs four days a week.

As is often the case in regional factories, many of the staff are longtermers, with some having tenures of around 20 years. This also means a wealth of corporate memory and wisdom onsite.

“They’re almost like mini-CFOs and mini-heads of operation,” Grech said of long-time lineworkers.

Whose problem will it solve?

Geofabrics’ major customers are attached to engineering and infrastructure projects, including coastal management, landfill sites, roads and rail, and – of course – resources.

Geosynthetics stabilise and reinforce vast amounts of earth, performing roles like keeping soil from absorbing water or eroding or collapsing into a spectacular heap. Geosynthetics, a “horizontal construction” are also reasonably new, and came about only in the 1960s “They’re the only construction material invented in the 20th century,” said Swifte.

“Concrete, wood, steel, rock – [these have] been around forever.”

The company set up in Australia in 1978 as an importer, and began manufacturing in Albury in 1987, where its main product is made around the clock and around 55 are employed. It has since added a factory at Ormeau, Queensland, which has polypropylene Texcel as

Whose problem will it solve? And then how much value will it bring to Geofabrics. It’s designed to be an easy, quick snapshot: ‘hey I’ve got an idea. I can go and answer these questions very quickly.’”

The collection form app, introduced only in March, has already been used to share 165 ideas: 57 for sales, 51 product, 18 factory, 16 technical, 16 IT and seven others.

These have included website payment methods, ways to better highlight the company’s premium products, and ways to better package and deliver expertise offered through the business.

Submissions go through a stage-gate process of screen, scope, business case, design/test/validate and launch.

Flavel describes his job as like an entrepreneur-in-residence, championing and pursuing the submissions with a sense of fun and enthusiasm, and all the ideas as mini-start-ups.

“I think it’s important to recognise the idea, celebrate the idea in itself. So rather than just send out an email, I send some novelty toys,” he said.

Building on bidim

“They’ve got opinions on everything and some great ideas.”

For these reasons, they are encouraged to lend their insights to the company’s innovation drive.

Everyone is.

“It’s as simple as what is the idea, what type of idea is it,” said innovation manager Ben Flavel, who began in late-April, describing the electronic process through which ideas are shared.

“What problem would it solve?

The Albury site has been making its bidim product since doors opened in 1987.

The polyester-based, nonwoven fabric starts as little polyester balls and end up wound into 6 metre-wide, 250-kilogram rolls at the end of the line. (“Just like your granddad’s cigarette rolling machine”, observed operations manager Howard Yen as we watched these at the end.)

Any of these geotextile rolls, once they leave the factory, can be matched up to a 10 – 15-minute window on the line using Historian software. This is essential for traceability, an area which lowermanmonthly.com.au

Innovation cost competition out of southeast Asian supply chains cannot match.

“Particularly in that landfill sector where there’s a lot of regulation, they really do value that transparency and QA, because they’re testing products onsite to make sure that what’s been delivered is what was ordered, what was specified,” Yen told Manufacturers’ Monthly.

Yen and company are currently in the middle of bringing a recent innovation to the company’s major product, bidim.

About to head into field tests at the time of writing is a grapheneenhanced version of bidim, which – when released – will be the first industrial-scale application of the single-atom-thick material in the world.

Besides the much-anticipated product, coated with Imagine Intelligent Materials’ Imgne G3 material, there are many, many areas where the company will be looking to do things differently.

Geofabrics has an aspirational target of increasing revenues by $10 million through its innovation program.

The secrets to unlocking all that value are out there on the company’s factory floors and offices, believe Flavel and co., just waiting to be tapped. Staff have all sorts of ideas.

One at Ormeau who worked out that offcuts was handy on holidays, for example.

“Our 1200R Texcel makes a really great camping mat,’” Flavel remembered being told, with the coastal landfill/stabilisation product taking care of bumps and moisture.

“So then the next question is is there a market, how big’s the market. That’s then my job to go and explore that.”

A sidebar on graphene The bidim with G3 project is the result of about nine months’ R&D with Imagine Intelligent Materials, which opened its Geelong pilot graphene factory this month.

“The background is that we’ve been working with them for about a year, I’d say, and in that industry, electrical conductivity in textiles has been desired for a long time,” David Giles-Kaye, executive director of Imagine IM’s certification labs, told Manufacturers’ Monthly.

Functionalised graphene would provide this conductivity and, if successful, provide a self-reporting leak-detection system for the many applications geotextiles are used in.

Proof-of-concept trials have been in progress the last couple of months.

“It was quite a journey,” said Swifte.

“It came from the concept that materials perform a function, but then how do you make that do something a little bit more smart?”

The product is scheduled for a September launch.

It would be a novel application for graphene, and dates back to discussions that began under the now-defunct textiles collaboration

hub, launched under the former Labor government’s META initiative.

Giles-Kaye believes the collaboration – which involves technology spun out of the University of Wollongong,continuing work at other universities and the CSIRO, and new technology applied to a traditional manufacturer – is a model of the type of advanced manufacturing spruiked by the federal government.

And with graphene in its early days and still unexploited as a platform technology, he believes there’s big potential there for Australian manufacturers.

“The story is not just about us, it’s about an industry,” he said.

“It ticks all the boxes for what the government wants us to be doing as an industry, and what the future of manufacturing in Australia really needs.”

Manufacturers’ Monthly travelled to the Albury site as a guest of Geofabrics Australasia.

Powerful. Flexible.

Easergy.

Discover the future of electrical network automation When an outage occurs in the electrical grid, our innovative Easergy feeder automation devices leap into action. Within seconds they can detect the fault and automatically reconfigure the network. That means power is restored faster and modern life keeps moving.

Learn how smart infrastructures work

Discover the future of electrical network automation

Get our free Smart Utility eBook today. Visit www.sereply.com and enter key code 55247Y

schneider-electric.com.au/easergy ©2016 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies. • 19736858_B

manmonthly.com.au

Manufacturers’ Monthly JULY 2016 37

Export Companies need to look further than their own backyard Success isn’t about just making things for a domestic market. Brent Balinski spoke to Michael Grogan, who recently finished up as CEO of Sutton Tools, about going global, and why the industry’s future is a bright one.

A

N industrial multinational giant such as Bosch, Boeing or GE is unlikely to spring up in Australia any time soon, but the future of Australian manufacturing belongs to local firms providing solutions to these multinationals.

This is the opinion of various industry bodies and policy-makers.

It is also consistent with the opinions of some of our leading companies. A survey of over 80 of the country’s leading manufacturers by the Advanced Manufacturing Growth Centre found access to the supply chains of these multinationals – which account for the vast majority of global trade– was the number one concern to becoming more successful.

One such globally-minded Australian manufacturer is Sutton Tools, which exports about 40 per cent of what it makes at its three sites in Victoria, where it employs roughly 400 staff. It is known for its constant reinvestment of revenues in R&D and its skill at solving customer problems for global clients, such as Apple contractor Foxconn.

“Over that period we set up operations in Singapore and in Europe to be able to tap into those markets,” explained Michael Grogan, who joined Sutton when it acquired P&N in 1994.

“And if you’re doing it yourself it’s a lot of hard work. It takes huge amounts of resources setting up greenfield sites in greenfield markets.”

Grogan moved to Australia in 1997 and recently left Sutton after two decades at the family-owned business, finishing as its CEO. Last 38 JULY 2016 Manufacturers’ Monthly

week he began as Director, Victoria at AMGC Ltd, overseeing operations at the organisation’s Innovation Hubs in Clayton and Geelong.

He begins his new role at an arguably exciting time for Australian manufacturing, currently enjoying an unbroken 11-month period of month-on-month growth, and in which new technologies are shifting the focus away from raw production and towards “intangible” stages.

It is a period in which the industry is being redefined, and many within it – such as the Australian Advanced Manufacturing Council – are trying to make those outside it realise that manufacturing nowadays

potential opportunities is in intermediate products for the aerospace industry, such as those made Tier 3 and Tier 4 manufacturers, according to a presentation by the group’s managing director Jens Goennemann during National Manufacturing Week recently. This is an area where Australia plays little part, though has a few success stories.

Whatever the eventual exact approach for engaging companies with such value chains, Grogan believes that there will be a great benefit for manufacturers through the AMGC, and the process will be sped up considerably.

“And after going through the pain of that for the last ten years

a change in the way we’re looking at it – it’s not just the old-style production line, or the old-style perception of where manufacturing is,” said Grogan.

“And I think parents need to understand that as well. It has been for the last 20 years of trying to change the attitude to it. And have the perception and understanding that it’s still offering great career opportunities for young people and it’s got some worldwide attraction as far as skills are concerned.”

Advanced Manufacturing Growth Centre www.amgc.org.au

“It’s got a very bright future, worldwide, but there is a change in the way we’re looking at it – it’s not just the old-style production line.”

is generally not repetitive, dull, unsophisticated, or stuck purely within four walls of a factory.

“Advanced manufacturers don’t just make things,” as Grogan’s new employer reminds us. “They also innovate, design, distribute and market products.”

The Growth Centre is preparing to deliver its Sector Competitiveness Plan, including a study of “two or three” of the international value chains where Australian companies are poised to do well.

One area where there are

I can see it as a huge benefit to small to medium enterprises,” he said.

Better exposure to these, goes the plan, will see the industry flourish, more success stories told, and therefore a more positive view of the industry. This will eventually see more attracted to a thriving, globally-oriented career.

“It’s got a very bright future, worldwide, but there is manmonthly.com.au

Export New ABS figures show more manufacturers exporting An economic analysis on ABS export figures released in late-July shows nearly 300 new manufacturers began exporting during 2014 – 2015, and lower exchange rates appear to be helping competitiveness overall.

M

ANUFACTURERS made up a fifth of all goods exporters, with 9,306 manufacturing firms exporting during the timeframe.

Every category of goods exporters grew in absolute numbers.

KEY POINTS • The total number of exporters of goods and/or services in 2014-15 was 51,228, an increase of 4,160 (nine per cent) from 2013-14.

The number of goods exporters increased by 3,947 (nine per cent) and the number of services exporters increased by 260 (eight per cent).

• The increase to the number of exporters was driven mainly by

those exporting less than $1m. Of this group, the number of goods exporters increased by 3,632 (9 per cent) and the number of services exporters increased by 162 (8 per cent).

• The number of goods exporters increased in each of the main industry divisions presented in this publication. The largest increase in the number of services exporters was to Telecommunication, Computer and information services, up 127 (19 per cent).

• In contrast to the increase in the number of exporters, the total value of goods and services exports decreased by $13b to $318b (-4 per cent) from 2013-14. The decrease

was due to the value of goods exports decreasing by $18b (-7 per cent) to $255b. This was partially offset by an increase in the value of services exports, up $6b (10 per cent) to $63b.

• The decrease in the value of goods exports was mainly driven by the mining industry decreasing in value by $21b, following significant falls in commodity prices.

“Notably” wrote Austrade chief economist Mark Thirlwell, the period “saw the addition of almost 300 new manufacturing exporters.”

Competitiveness has been assisted by a drop in the Australian dollar from its peak of $US1.10 in 2011.

Besides “other”, the manufacturing

sector led by number of exporters.

The real exchange rate continued to fall during the period recorded, and was down 10 per cent between July 2014 and June 2015, “[bringing] the total real depreciation from mid-2012 to more than 18 per cent,” according to Austrade.

“Most striking” of all the figures, notes the article, was there were 51,228 goods and services exporters in the period, an increase of 3,947 on the year before.

“While the lack of consistent data on services exporters means we can’t track the trend in total exporter numbers over time, we can splice together the back data on goods exporters,” wrote Thirlwell.

XTN20

The Next Generation High speed blind rivet nut tool Fast Neat, g! on & Str

The ProSert® XTN20 provides high speed installations, improved assembly productivity, clear and fast access to the work piece, and setting adjustments easily made in a production environment. Blind rivet nuts can be installed into sheet metal, tubing, extrusions, plastics, and other materials to provide strong, reliable internal threads in applications requiring assembly and disassembly.

Flexible operation in both pull-to-force or pull-to-stroke modes High force-to-weight ratio of 11.1kN/kg Durable high-strength installation mandrels as standard Long lasting hydraulic lip seals maximise re-priming intervals l Convenient reverse spin-out button l Easy to use, tool free, quick installation mandrel system - patent applied for l l l l

www.StanleyEngineeredFastening.com manmonthly.com.au

PH: 1800 062 355 Manufacturers’ Monthly JULY 2016 39

What’sNew

Brought to you by

High head cutter pump TSURUMI’s new CR series three-inch and four-inch high head cutter pump produce heads of up to 70 metres. Designed for cutting fibrous material in industrial or effluent/sewage applications, the new series was developed for applications where pump-out either over longer distances or higher elevations is required.

The new three-phase CR series start from 2.2kW units that offer flows of up to 600 litres per minute with heads to 20 metres. At the other end of the scale, the big 22kW four-inch version delivers maximum flow of 1700 litres per minute with a head of 70 metres.

Tsurumi CR series incorporate a cutter mechanism that consists of a tungsten carbide tip channel impeller and a saw-tooth suction cover hardened surface. The cutter mechanism cuts fibrous material into small pieces permitting clog free pumping.

Like all Tsurumi sewage and wastewater pumps, the

new CR series come with a unique anti-wicking cable entry.

This mechanism protects the motor by sealing the strippedback cable conductors with a moulded rubber or epoxy “potting” which has been loaded between each strand of the conductor.

All Tsurumi submersible pumps are backed with a three-year warranty.

Aussie Pumps 02 8865 3500 www.aussiepumps.com.au

Support for aerial work platforms GENIE, an aerial work platforms specialist, is setting a new benchmark for heavy maintenance efficiencies and customer service with Genie 360 Support.

The end-to-end support offering covers AWP needs from initial sales and service through to technical support, operating training, and the comprehensive management of their ageing fleet, including heavy maintenance repairs.

Genie has invested in stateof-the-art heavy maintenance inspection facilities in Melbourne, Brisbane, Sydney and Perth. These facilities are purpose-built for

ten-year inspections and heavy maintenance repairs, as well as complementing their chain of customer support centres around Australia.

Genie machine performance data is the basis for the inspection and heavy maintenance processes.

Customers have the assurance that before a product enters the market, the prototype has undergone a range of tests to validate the design. Longer term, thorough testing will deliver speedier major inspections.

When a new scissor lift model, for example, is designed and

built, the lifting mechanism must undertake a rigorous cycle program which will push the components through the machine’s expected life cycle.

The combination of a rich data pool and thorough testing enables Genie to methodically revise its procedures for major inspections to ensure they are efficient, costeffective, reduce downtime and improve a machine’s ROI over its lifetime.

Genie 1800 788 633 genielift.com.au

Cordless rebar cutter Xxx STAINELEC HYDRAULIC Xx EQUIPMENT offers Ogura’s xxx HSC-25BL cordless rebar cutters, designed for cutting maximum 25mm diameter high tensile rebar, tensile fastening bolts, locks & threaded rod with ease for factory & on-site applications.

Ogura’s cutters incorporate several safety features, including an ergonomically designed cover guard system located over the moving saw blade that provides protection to the operator when the tool is in operation.

The HSC-25BL cutting blade

40 JULY 2016 Manufacturers’ Monthly

system is powered by a Makita 18Volt 5.0/Ah battery & motor. The cordless motor casing has been designed to protect the internals from moisture & dust. The support handle can be installed either on the left, right & top side of the cutting head.

This unit also comes complete with a dust collection bag for easy waste removal from the work area.

The HSC-25BL is designed & precision manufactured in Japan to the highest of international standards and is available from Stainelec.

Stainelec Hydraulic Equipment 02 4871 2121 www.stainelec.com.au

Simplified PDF workflows NUANCE COMMUNICATIONS has released Power PDF 2 software to make it easy for businesses to gain control over PDF workflows with the ability to create, convert, edit, assemble and securely share PDF files.

Delivering enterprise grade capabilities that business users require, Power PDF combines usability, compatibility and security, corresponding to the overwhelming successful strategy Microsoft has employed for Windows 10. The software exposes these features through an intuitive and familiar Microsoft Office look and feel that also supports Windows 10 touch-enabled 2-in-1 convertible laptop devices similar to the Microsoft Surface.

Power PDF 2 address the increasing need for touch-enabled hybrid devices, spurred by the user adoption of Windows 10 and next generation hybrids. It provides the convenience to navigate, draw annotations and type using a tablet or notebook and a pen or finger so users can be productive in the office or on the go.

Nuance Asia Pacific 02 9434 2300 australia.nuance.com

manmonthly.com.au

Brought to you by

NOMINATIONS NOW OPEN To nominate, please visit www.foodmagazineawards.com.au Platinum Sponsor

Sponsors

The LastWORD Submarine expertise is just the tip of the skills iceberg Long-time defence industry advocate Chris Burns spoke to Brent Balinski and shared some reasons why Australia should build its own ships and submarines.

R

EGULARLY referred to as the second-most difficult thing to build after a space shuttle, the ability for a country to build its own submarines is a measure of industrial sophistication, a critical bit of sovereignty and more besides.

“If you can build a submarine you can pretty well build anything,” Chris Burns, then-CEO of the Defence Teaming Centre, told Manufacturers’ Monthly recently.

The ASC’s website comparison of the Collins Class subs to hardware including Boeing’s 777 airplane makes the degree of complexity clear.

Introduced in 1995, the airliner weighs in at 250 tonnes, runs 40 systems, uses 550 suppliers, is made of 100,000 parts, and takes 50,000 hours to assemble.

The Collins class sub is 3,000 tonnes, has 108 systems, relies on 1,600 suppliers, comprises 500,000 parts and takes 2.5 million hours to assemble.

Of course, the Collins fleet will begin to be retired in 2025, replaced by a dozen 97-metre, 4,500 tonne Shortfin Barracuda Block 1A

vessels, designed by DCNS and built in Adelaide.

The decision to make these conventionally-powered vessels in Australia was the right one, argues Burns, who led the DTC from May 2010 until the end of June, advocating for SA’s defence manufacturers.

“As an isolated island nation, with greater than 90 per cent of our imports and exports coming by nine key shipping lanes, the submarine is the most important and essential piece of military hardware we’ve got,” explained Burns.

“So we couldn’t be in a situation where for your most important piece of military hardware you were reliant on an overseas country for spare parts.”

Though the reliability of the Collins has sometimes been maligned, the reason the program went ahead sadly gets forgotten from time to time, noted Burns.

The drought of spare parts during the 1982 Falklands conflict saw Australia’s Oberon submarines tied up due to our dependence on the UK as a supplier. It was later decided that if the situation was not to be

repeated, Australia should build its submarines in-country.

Getting the drumbeat going The decision to base the submarine build at Adelaide was the right one, believes the Teaming Centre.

The ASC workforce has 2,600 skilled tradespeople and engineers, as well as the existing infrastructure.

A new factory, “a bit larger than the Adelaide cricket ground” must be built to make the new subs, according to DCNS. “Nothing against Western Australia; they are fully capable of doing the middle-level maintenance,” said Burns of the shipbuilding rival state.

“What they don’t have is that experience – for example, here in South Australia we can physically cut a hole in the submarine or cut the submarine in half in order to refit it.”

Shipbuilding projects such as the Future Submarines and Offshore Patrol Vessels are hugely important to the state’s industrial strength.

It is losing production at Holden’s Elizabeth plant next year and the future of the Arrium Whyalla

steelworks is not certain.

The state has only 8 per cent of Australia’s population, but about 25 per cent its defence industry.

SA’s DTC has long campaigned for a continuous shipbuilding program to level out peaks and troughs in work and consistency for the shipbuilding workforce. A claimed premium of 30 per cent to build submarines here was sometimes cited by critics of the DCNS contract.

Burns said this is unfair, and the local naval defence industry hasn’t had the chance – due to the stop/start nature of contracts in the past – to build up its muscle tissue.

“With the Air Warfare Destroyers from ship one to ship two you had a 30 per cent productivity improvement and from ship two to ship three we’ll have a 20 per cent improvement in productivity,” said Burns.

“And that’s consistent with when we built the Anzac frigates, when we built them from scratch as well. Once you get the drumbeat going and the workforce aligned and productive, then you are globally competitive and there is no premium to pay.”

The Collins Class: 3,000 tonnes, 108 systems, 1,600 suppliers, 500,000 parts, 5 million hours to assemble.

42 JULY 2016 Manufacturers’ Monthly

manmonthly.com.au

The LastWORD Any premium is also more than negated by things such as investing in the local industry, taxes being paid and not having to pay welfare to workers between jobs, he added.

The future is nuclear Some experts have hypothesised that DCNS was selected as the winner of the Competitive Evaluation Process due to its Barracuda class submarines being nuclear-powered. If policy and community attitudes change, the option of Australia getting nuclear vessels would be there, the theory goes. The Adelaide Advertiser reported last month that the incoming federal government will be advised to consider SA as a hub for nuclear ships and submarines.

“As Adelaide is being positioned to be the centre of continuous ship and submarine construction in Australia, the federal and state governments should jointly develop a plan to strengthen universitylevel instruction in physics, nuclear engineering and necessary supporting

sciences based in SA,” the Australian Strategic Policy Institute wrote in a brief for the next government.

Consistent with the above comment, Burns believes that capability around a nuclear industry needs to be developed before atomicpowered submarines can be planned.

A first entry into nuclear power should probably not be a submarine.

“You want to learn how to build a power plant on the shore, to learn how to process the ore, to develop the fuel, how to store the fuel, how to run a power plant ashore before you start going into the mechanics of building a nuclear submarine,” he said.

The state is debating the possibility of a nuclear industry, and the government’s response to the Nuclear Fuel Cycle Royal Commission. It’s an exciting prospect for the defence industry, believes Burns, who has just finished as head of the DTC and begun this month as the SA’s Mental Health Commissioner.

“Once you start storing nuclear waste here, we’re going to have

The Best solutions........

Direct Drive Air Centre up to 20hp and 79cfm

High Pressure Boosters up to 40barg

to have specialist nuclear waste transportation ships – now I’m told that the complexity of a nuclear waste transport ship is almost as complex as building a submarine, because of the safety, the requirements of the pressure hold and what have you to transport the nuclear waste,” he said.

“So having built submarines

here, we’d be ideally in line to build nuclear waste transportation vessels, and if we’re in the nuclear waste storage facility then we might migrate then to processing the ore and actually building a nuclear power plant if it was commercially viable.”

Defence Teaming Centre 08 7320 1003 www.dtc.org.au ANZAC Class frigate.

The BOGE brand: First-Class-Engineering made in Germany.

Oil free piston, scroll and screw compressors

Nitrogen Generators with Selective Purity and Flow

Discover the BOGE edge: www.boge.net.au

Fixed Speed or Frequency Controlled, Belt Drive and Direct Drive Compressors from 4hp, 15cfm to 480hp, 1500cfml

......for the Best Results! manmonthly.com.au

FOR YOUR NEAREST DISTRIBUTOR PLEASE CONTACT BOGE HEAD OFFICE +61 3 5940 3266

Manufacturers’ Monthly JULY 2016 43

, D E E N U .

O T Y E R R E ER N. V E F O T N A O H IS H W D IT RC A N I E F ES TH

RELY ON AUSTRALIA’S MANUFACTURING, MINING AND INDUSTRIAL HUB 70,000 monthly users can’t be wrong. Find what you’re looking for with over 12,000 business listings and 8,000 specific product listings. Access relevant information and resources, empowering you to make a qualified purchase decision. You can always rely on your industry hub.

FERRET GROUP OF WEBSITES

F E R R E T.C O M . AU