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SEPTEMBER 2019
LEAN MANUFACTURING MEETS INDUSTRY 4.0
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22 How manufacturers can get the most out of academics
26 Exclusive interview with Industry 4.0 leader
34 The new frontiers for instrumentation
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18 Industry Focus
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Standing on the shoulders of giants. Our current success depends upon those who have come before us and returning to those fundamentals can give us a sense of where the future is headed. In this month’s issue we return to the practices of Lean manufacturing in light of the advances of Industry 4.0. While the two philosophies may seem to be diametrically opposed, with one focussed on reducing complexity and the other committed to adopting the latest and most advanced technology, there may be more room for the two to co-exist than previously thought. With Lean now looking into operational
excellence when it comes to the human resources needed in a factory, and Industry 4.0 being designed to free people up from mundane and repetitive tasks, adopting both management ethea can contribute to the continuous improvement of manufacturing. In this story we speak with those enabling manufacturers to develop the skills and the knowledge to implement Lean and Industry 4.0, as well as those who have seen the evolution of both philosophies and can find a point between the two. What’s next? A streamlined, technologically advanced production floor in Australian manufacturing.
LEAN MANUFACTURING MEETS INDUSTRY 4.0
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22 How manufacturers can get the most out of academics
26 Exclusive interview with Industry 4.0 leader
34 The new frontiers for instrumentation
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Comment
SYED SHAH – Managing Editor, Manufacturers’ Monthly
Time to be lean and mean
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CROSS the Pacific, US President, Donald Trump’s continued trade war with China is not helping global manufacturing as a whole. Recently, Trump made matters worse with a new, 10 per cent tariff hike on China. According to the Global Manufacturing Purchasing Managers Index (PMI) by financial institution J.P.Morgan, the downturn in the global manufacturing sector extended into its third consecutive month in July. The index read 49.3, falling for the third straight month since October 2012. The report found that production and new order intakes continued to decline, as conditions in many domestic markets remained soft and there was continued contraction in international trade volumes. The report also noted that these trends filtered through to the global labour market that resulted in job losses across the board. Of the 30 nations for which July data were available in the report, 19 had Manufacturing PMIs that read below 50. Technically, this indicated
6 SEPTEMBER 2019 Manufacturers’ Monthly
downturns in these economies. China, Japan, Germany, South Korea, Taiwan, France, the UK, Italy and Brazil were among the countries seeing contractions. It pointed out that even the US was tethering on the borderline neutral 50.0 mark at 50.4 in July. Over here, in Australia, we had a tough few months with the PMI dipping once below the Ai Group’s PMI mark in June at 49.4. Following that, it bounced right back up to 51.3. Chief executive of the Australian Industry Group (Ai Group), Innes Willox, said that Australian manufacturing edged back into growth in July because of the continued expansion of the food and beverages, chemicals, and buildingrelated products sectors. He said that these outweighed the ongoing deterioration in activity in the metal products and textile, clothing, footwear, and paper and printing sectors. Willox also highlighted that machinery and equipment manufacturers were helped by
infrastructure funding and that although total production was low, exports grew due to low exchange rates and overseas demand for food, beverages, pharmaceutical, and cosmetic products. Despite the uptick in manufacturing in Australia, the future remains uncertain. There is still much that can be done to cut costs and wastage among manufacturers. Lean manufacturing was originally developed at Toyota. It involves reducing wasteful activities and frees up resources to concentrate on those activities that add value to the product or service. As a result, the manufacturer transfers its efforts to value-added operations, increasing both production and profits. Lean is about identifying and eliminating waste at every level of the production process. In this sense, waste is defined as any activity that does not add value to the finished product or service. Some examples are the unneccesary transportation and handling, waiting (time in the queue), products that are defective, underutilised skills and lack of
standardisation in work processes. Another type of waste defined in lean is that of lead time used. This includes inventory, rework, waiting, and transportation. Since involves the elimination of wasteful inventory, Lean focusses on building and shipping according to customer demand rather than building to schedules and forecasts. According to textbook concepts of Lean, this based off the pull-system. In order to arrive at this point, since actual sales and market events drive both assembly and supply chain operations, supply chains must be connected to sales and marketing. In short, a Lean enterprise will usher in a problem solving culture that constantly seeks to streamline production in the most efficient way possible with maximum results in cost savings and output. In this issue, we take Lean one step further – how it coexists with Industry 4.0. We speak to Professor Amrik Sohal from Monash University and Terri Hiskey from Epicor about how Lean and Industry 4.0 can work hand in hand.
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Comment
GEOFF CRITTENDEN – CEO, Weld Australia
The importance of Certification to AS/NZS ISO 3834 Standards not only foster local credibility but international recognition.
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S/NZS ISO 3834 Quality requirements for fusion welding of metallic materials is a factory production control system, drafted to complement – rather than replace – quality management systems, such as ISO 9001. As a factory production control system, certification to AS/NZS ISO 3834 helps businesses operate more efficiently, improving client satisfaction. It increases the likelihood of global supply chain opportunities and repeat business, bolstering profitability. Certification helps Australian businesses demonstrate their ability to deliver a compliant, quality fusion welded product on time and to budget. 8 SEPTEMBER 2019 Manufacturers’ Monthly
AS/NZS ISO 3834 is the minimum benchmark for welding quality globally. Until recently, many Australian asset managers were satisfied with simply asking contractors and suppliers to confirm their compliance to the relevant welding factory code: AS/NZS ISO 3834. As such, it was not a necessity for Australian welding companies to become certified. Unfortunately, the problem with compliance is that there are an enormous number of grey areas, many of which would not be accepted by a qualified Weld Australia auditor. As a result, the quality of welding output often varies dramatically between a Weld
Australia verified company and a company that has self-certified compliance. In addition, AS/NZS ISO 3834 has traditionally been viewed as a quality management system. This meant that many welders and fabricators opted for certification to ISO 9001 Quality management – a more general quality certification. However, as AS/NZS ISO 3834 is a factory production code, it is considerably different to ISO 9001. In comparison to a general quality management Standard such as ISO 9001, AS/NZS ISO 3834 specifies the quality assurance principles expected specifically for welded products globally. It provides internationally recognised quality
requirements for the welding of metallic materials by fabricators, manufacturers, constructors, and maintainers. As a result, Australia’s welding and fabricating industry lags a long way behind other developed nations in terms of AS/NZS ISO 3834 certification rates. However, this situation is undergoing a dramatic, extremely positive change. Many of the prime contractors involved in the defence shipbuilding and land systems projects – valued at over $150 billion – require AS/ NZS ISO 3834 certification as a minimum requirement for any company wishing to join their global supply chains. manmonthly.com.au
Furthermore, state-owned infrastructure managers (such as Roads and Maritime Services in New South Wales and VicRoads in Victoria) will soon require similar levels of certification. The new Austroads Steel Fabrication Specification, which looks set to gain support from most state governments, requires certification to AS/NZS ISO 3834 by an International Institute of Welding (IIW) accredited certifying body which, in Australia, is Weld Australia. In addition, the 2017 revision of the Australian bridge design standard AS/NZS 5100.6 makes normative references to AS/NZS ISO 3834.2 and 3. This is the first Australian Standard that makes nonoptional normative references to these two parts of the Standard. The certification requirements set out by defence industry prime contractors, state-owned infrastructure managers, and design standards has created a surge in demand for both individual and company welding certification. As a result, Weld Australia looks set to double the number of Australian companies that are certified to AS/NZS ISO 3834 this year. After years of hard work, with only a modicum of success, we now find ourselves in an industry that is embracing change.
This growing acceptance is extremely encouraging. Weld Australia wants to see every Australian company involved in welding certified to AS/NZS ISO 3834, particularly as the benefits of certification are so wide-ranging. Certification to AS/NZS ISO 3834 improves client satisfaction, and increases the likelihood of business opportunities, repeat business and growth in profitability. It helps Australian businesses demonstrate their ability to deliver a compliant welded product on time and to budget.
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Certification to the standard fosters credibility and international recognition, clarity on technical requirements through a formal review process, and it promotes and increases the technical knowledge of all levels of personnel involved in the welding process (from trades and inspectors, through to supervisors and management). I believe the recent uptick in certification rates is absolutely fundamental to the future of welding in Australia. Until the quality of work
produced by Australian welders matches that of welders in Europe and America, Australia will always lag behind and struggle to compete. Weld Australia’s policy has always been that we welcome competition from overseas fabricators and suppliers, as long as they comply to the same Australian and International Standards as Australian welders and fabrication companies. After all, it is these Standards that make Australia a safer place to live.
Consistent standards ensure a safe manufacturing industry.
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Manufacturers’ Monthly SEPTEMBER 2019 9
News@MM Victorian farmers encouraged to adopt IoT technologies
The trial could connect farmers with advanced manufacturers. The Victorian government is supporting farmers to invest in Internet of Things (IoT) technology, boosting advanced manufacturing enterprises with applications in the agricultural sector. Horticulture, dairy, sheep, and grains farmers are encouraged to be involved in the $12 million On-Farm
Internet of Things (IoT) trial. According to a statement on the program from the Premier’s office, the potential increase in value to Australia’s agricultural sector through the adoption of digital technologies is estimated at $20.3 billion. The connection of appliances to the internet is central to this
expansion of value. Examples of smart agricultural technology could include data gained from sensors on devices including soil moisture probes, weather stations and storage facilities. With Australian manufacturers already producing the component devices that lead to IoT ecosystems, close collaborations with the agricultural sector has the potential to put Australian manufacturers at the forefront of global innovation in smart technology. Minister for Agriculture, Jaclyn Symes noted that this grant will allow farmers to take the next step. “Our IoT trial is an ambitious program supporting Victorian farmers to be at the forefront of modern agriculture, to improve farm productivity, efficiency and safety,” said Symes. The grants program, run by the Victorian government, will give farmers up to $30,000 to acquire
IoT technology from a governmentcreated catalogue. Farmers will be supported in acquiring this hardware by four technology coordinators. The program is designed to allow farmers to take a low-risk approach to the adoption of IoT technology. Devices that could be used on farms are able to be trialled to see if productivity and efficiency gains can be found. The grants will be distributed to four regions; dairy in Maffra, grains in Birchip, sheep in Serpentine, and horticulture in Tatura. According to Symes, there is great potential for IoT on agricultural properties. “We’ve been working with Victorian farmers to understand how digital technology can revolutionise their businesses – and we’re excited to invite farmers to trial new IoT tech on their own farms,” said Symes.
BAE Systems selects SA manufacturer for UK naval shipbuilding contract South Australian company Airspeed has been selected by BAE Systems to support the Global Combat Ships program. The program will build three ships in Glasgow, Scotland for the UK Royal Navy as part of the multi-billion-dollar UK Type 26 program. The Type 26 frigate is the original model which led to the Hunter class frigate, also currently under development. Airspeed specialises in the “design and build” of composite materials for aerospace, maritime, and energy projects. Airspeed will manufacture a replenishment sea stump mast. Airspeed is one of seven Australian companies that BAE Systems has selected to supply the
10 SEPTEMBER 2019 Manufacturers’ Monthly
Type 26 program. The partnership between Airspeed and BAE systems was announced by Minister for Defence, Linda Reynolds at the BAE Systems shipyard. “I’m delighted that another homegrown company is able to benefit from the Type 26 program. I look forward to continuing to work closely with the UK Government and industry in both countries on further deepening our defence relationship,” said Reynolds. ASC Shipbuilding is the BAE subsidiary that is delivering the Hunter-class frigate program and links the Hunter program with the Global Combat Ships program. “On the Hunter Program we are committed to engaging with the nation’s defence industry and
Defence Minister, Linda Reynolds visited BAE Systems in Scotland. discovering the world-class capability that Australian companies offer, and I am delighted seven local businesses are now supplying into the Type 26 program,” said managing director ASC Shipbuilding, Craig Lockhart. For Airspeed, this latest contract is the evolution of their involvement in previous defence projects.
“In recent years, we have evolved our aerospace background to roll out lightweight structural composites for the Collins-class submarines and local warship programs,” said managing director of Airspeed, Steve Barlow. The involvement of Airspeed in the UK project is part of BAE Systems’ aim to maximise Australian industry involvement in projects around the world. “Airspeed’s engagement with the UK Type 26 program was facilitated through BAE Systems’ Global Access Program (GAP), which helps Australian small to medium enterprises access worldwide opportunities by providing them an entry point into the company’s global supply chain,” said Lockhart.
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News@MM Australian PMI returns to positive The Ai Group’s Performance of Manufacturing Index (Australian PMI), has returned to positive territory in July. The index climbed 1.9 points to reach 51.3. Readings above 50 indicate an expansion of activity in the sector. In June, the Australian PMI dropped below 50, indicating a contraction in the sector, for the first time in nearly three years. Chief executive of Ai Group, Innes Willox, highlighted the areas where manufacturing in Australia has grown. “Australian manufacturing edged back into growth in July as continued expansion of the food & beverages, chemicals, and building-related products sectors outweighed ongoing deterioration in activity in the metal products and textile, clothing, footwear, paper & printing sectors,” said Willox.
After a drop, the index climbed above 50 in July.
Willox highlighted that machinery and equipment manufacturers were helped by infrastructure funding and that although total production was low, exports grew due to low exchange rates and overseas demands for food,
beverages, pharmaceutical, and cosmetic products. Just over half of the indexes grew in July. Supplier deliveries, new orders, exports, finished stocks and employment increased, however,
production, sales, input prices, selling prices and average wages decreased. By sector, the segment of the manufacturing industry with the greatest improvement was building, wood, furniture, and other at 63.7. The sector that experienced the greatest fall was textiles, clothing, footwear, paper, and printing, which fell 3.5 points to 39.1. Willox noted that these indicators pointed towards a positive second half of 2019. “Pressures on manufacturers’ margins continued in July in the face of weak domestic sales and selling prices even though the pace of increases in wages and other input costs eased. In encouraging pointers for the months ahead, both new orders and employment expanded in July,” said Willox. The Australian PMI has been collecting data since 1992.
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Manufacturers’ Monthly SEPTEMBER 2019 11
News@MM Minister Cash places renewed focus on VET In a speech delivered at the National Vocational Education and Training Research Conference, Minister for Employment, Skills, Small and Family Business, Michaelia Cash, announced that the federal government sees the vocational education and training (VET) sector as important to the economy as universities. Noting that the government wishes to transform the delivery of skills and funding for training, Cash clarified how the funding of $500 million for a “Skills Package” will be spent. The funding will provide careers guidance, foundation skills training and more apprentices for indemand jobs. In her speech, Cash cited figures that show that those with VET qualifications can make as much money as those with university degrees. Cash noted that this funding for the VET sector will enable the workforce to evolve. Furthermore, as employees and businesses require their staff to
undergo mid-career training in service of re-training or up-skilling, the VET sector is the educational provider of choice, with one quarter of VET students over 45 and two thirds over 25. However, according to the Joyce Report into the VET sector, training providers need to better connect with industry and there is a lack of clear, consistent funding. With the $500 million in funding, the government will establish a National Skills Commission, pilot Skills Organisations in priorities industries, including digital technologies, found a National Careers Institute with a National Careers Ambassador, expand the Australian Apprentice Wage Subsidy Trial, and create 10 Industry Training Hubs in regional areas. “Demand for skills is shifting from manufacturing to the services sector and emerging industries like advanced manufacturing, ICT and cyber-security. Our vocational education system needs an upgrade to ensure it remains world-class,
The federal government hopes to put VET providers on par with universities. modern and flexible,” said Cash. The Australian Industry Group (Ai Group) welcomed Cash’s comments, with chief executive, Innes Willox, highlighting the role that the VET sector plays in providing a skilled workforce for future industry needs. “If the Australian economy is to continue to prosper and remain internationally competitive, it is vital to have access to a highly
skilled and qualified workforce. With the rapid advance of technology and digitalisation, a higher level of skills for the workforce is more important than ever,” said Willox. Willox noted, however, that there is further work to be done in aligning educational outcomes with the needs of industry, and the assistance industry requires to develop workforce plans to manage digitalisation.
Smart trucks have capabilities tested in Talisman Sabre The latest generation of trucks for the Australian Army have been tested under combat-simulation conditions at Exercise Talisman Sabre 2019.
The trucks, made by Rheinmetall MAN Military Vehicles Australia, are augmented with Australian-made trailers.
Image credit: Corporal Tristan Kennedy.
The trucks are supported by Australian-made trailers.
12 SEPTEMBER 2019 Manufacturers’ Monthly
Local manufacturers including G.H. Varley, Holmwood Highgate, RPC Technologies, Sea Box International, Thales Australia and Penske Commercial Vehicles, will all form part of the supply chain. These newer trucks will replace the Australian Army’s 30-year-old fleet of Unimog, Mack and S-Liner trucks. During Talisman Sabre, the smarter trucks are having their networked, protected and multimodal capabilities tested. Via their connection to digital communications equipment, the trucks can more effectively supply soldiers and teams. “We have both protected HX77s and 40Ms in my replenishment
team, which have proven to be pretty capable over the terrain that we have been going over,” said Major Luke Tindale. The entire Land 121 project is worth $3.4 billion and will deliver thousands of vehicles between 2018 and 2022. In phase 3B, the Rheinmetall MAN 40M, HX77, HX81 and 45M Heavy Recovery Vehicle have been supplied to the Australian Army. “The other key strength is the protected capability. A third of the fleet is now armoured, which provides it the ability to deploy into a threat environment. Previously, our fleet was not armoured, which restricted their employment on operations” said Lieutenant Colonel Dan Turner.
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News@MM Robotics lab to encourage hands-on Industry 4.0 knowledge A new digital fabrication facility, ProtoLAB, opened this week at Swinburne University of Technology. The lab will house industrial robots for large-scale architectural design prototyping. The design of the space is intended to open up the fabrication process to passers-by and allows observation and interest to be garnered by the large windows that open out at street level and the presentation of the machinery inside. Included in the lap is a highspeed HP Jet Fusion 3D Printer, which allows for prints with complex geometry without support materials needing to be removed. In addition, an Okuma CNC turn mill, seven laser cutters, a Biesse CNC router, a Mutlicam router, two KUKA collaborative robots, and a larger
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KUKA KR120 robot are available for use by students and researchers. According to manager of technical services, architecture and design, Andrew Tarlinton, the site allows for better ways of creating products. “By using data and analytics, [students] work out what’s required, reducing waste material and improving user experience. Generative design and parametric design are not new ways of working, but we are progressively finding easier ways of producing designs, and communicating to the machines,” said Tarlinton. At other levels of collaboration, the facility will broaden the capabilities of Swinburne’s researchers to partner with industry. “We also now have the space and large-scale robotics to undertake
prototyping, fabrication and assembly at architectural scale,” said dean of design, professor Jane Burry. Having the machines on site allows for students to gain practical knowledge alongside theoretical understandings imparted in the classroom. “By teaching the full potential of Industry 4.0 machines, we enable students to translate these capabilities back into their designs with a deeper technical knowledge and understanding,” said Tarlinton. With such a modern facility, Swinburne hopes to garner the interest of a broad swathe of industrial designers. “In design, access to a top-quality workshop is a major attractor for both students and researchers for testing and developing ideas.
The facility will provide services for students and industry. The quality of the workshop and expertise of staff is critical, and regular access invaluable,” said Burry.
17/07/2019 07.50
Manufacturers’ Monthly SEPTEMBER 2019 13
News @MM Compressed air to be utilised as storage for renewable energy The first advanced compressed air energy storage (A-CAES) in Australia will be built in South Australia, near Strathalbyn. While the basic technology behind compressed air energy storage has been available since the 19th century, the technology has been improved and taken up at a larger scale with the uptake of renewable energy sources that fluctuate in energy production, such as wind and solar. Canadian company Hydrostor will build the facility at the former Angas Zinc Mine by turning the old mine into an air-storage cavern, 240 metres underground. The A-CAES will take energy produced by wind and solar farms to run a compressor that will produce heated, compressed air, which will be stored underground.
The compressed air is then released to drive a generator when demand for electricity spikes. The cost of the entire project is $30 million with $3m from the SA government’s Renewable
Technology Fund and $6m from the Australian Renewable Energy Agency (ARENA). According to Energy and Mining Minister, Dan van Holst Pellekaan, the site will reduce the cost of
The storage facility reuses an old mine site.
electricity in SA. “This is another step in the transition of South Australia’s energy system by the integration of renewable energy into the grid to deliver cheaper, more reliable and cleaner energy,” said van Holst Pellekaan. For Trade, Tourism and Investment Minister, David Ridgway, the successful approval of the site is evidence of the growing market for renewable energy projects in the state. “With 47 per cent of South Australia’s energy production now coming from renewable sources, our state is without doubt a major global player, and this is reflected in the $7 billion worth of investment we’ve attracted into the local industry,” said Ridgway.
Leading factories commit to sharing innovation The World Economic Forum’s Lighthouse Network has expanded with the addition of 10 new factories. Selected for their utilisation of Industry 4.0 technologies, the plants have all used innovative solutions to increase profits and streamline processes. This announcement takes the number of lighthouse factories to 26. The World Economic Forum hopes that this network serves as a reference point for other enterprises that wish to develop systems such as artificial intelligence, big data, and 3D printing. The added lighthouses include a Ford subsidiary in Turkey that has applied digital manufacturing and advanced automation to take a step further than Lean. The implementation of these technologies increased output by 6 per cent and employee engagement by 45 per cent, while avoiding additional capital expenditure investment. 14 SEPTEMBER 2019 Manufacturers’ Monthly
Another lighthouse factory is Nokia’s plant in Oulu, Finland, which combines a private wireless network with other Industry 4.0 solutions and has seen productivity increase by 30 per cent and time to market reduced by 50 per cent. In Korea, Posco has partnered with local academics, SMEs, and start-ups to implement artificial intelligence improvements to its steel manufacturing processes. These companies will share their breakthroughs outside of their factory walls as required by the Lighthouse Network. “The global Lighthouse Network offers an unrivalled opportunity not only to highlight the transformational efforts of the world’s most advanced manufacturers but also, more importantly, to create a shared learning journey that will help manufacturers around the world, across value chains and of all sizes to access and capitalise on the positive potential of the
Fourth Industrial Revolution,” said Francisco Betti, head of advanced manufacturing industry, World Economic Forum. The full list of 10 lighthouses demonstrate how innovation is leading to company success. “The 10 new lighthouses confirm that frontrunners in the Fourth Industrial Revolution draw a
competitive advantage from either innovating their production system or by innovating their entire value chains and offering new products and services that were not possible before,” said Enno de Boer, partner and head of McKinsey & Company’s Global Manufacturing Practice, which assisted the Forum with this project.
The 10 sites are spread around the world.
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News @MM Queensland commits to robotics manufacturing hub
The hub will connect robotics research and commercial applications. The Queensland government will fund and create the first robotics manufacturing hub in Australia. With funding of $7.71 million spread over the next four years, the Advanced Robotics for Manufacturing (ARM) Hub will be built with support from the Queensland University of Technology
(QUT) and architectural design company Urban Art Projects (UAP). According to Minister for Manufacturing, Cameron Dick, the facility will be realised through nongovernment sources. “The Hub will attract more than $10 million in additional investment from QUT, UAP, and other partner
organisations to bring the total investment to almost $18 million,” he said. The Hub will provide a space for the development of high-value products and the incorporation of new technologies in manufacturing processes. “The Hub will allow Queensland industry and research institutions to build the advanced capability that will enable manufacturers to be more competitive, bring manufacturing jobs back to Australia and generate new jobs here,” said QUT vicechancellor, professor Margaret Sheil. In a report conducted for QUT, robotics and automation were found to drive 1.5 per cent of additional growth to the Queensland economy over the next 10 years, equivalent to $77.2 billion and a potential 725,810 jobs. The ARM Hub hopes to enable Queensland businesses to delve into robotics to support their business.
“The ARM Hub will provide practical production and manufacturing advice in a reallife factory environment, enabling Queensland manufacturers to learn cutting-edge robotic technologies and techniques, and develop industry skill and expertise to apply to their own businesses,” said Dick. Based out of QUT’s Brisbane campus, the Hub’s expertise will be shared across Queensland through the Queensland government’s manufacturing hubs in Cairns, Townsville and Rockhampton, as well as defence hubs in Townsville and Ipswich. “This is a facility for all of Queensland. All manufacturers across the state will be able to access the ARM Hub, across sectors as diverse as aerospace, biomedical, beef and food processing, defence, mining equipment, technology and services, rail manufacturing, and space,” said Dick.
Growing hydrogen’s potential to be more than just hot air Fitting together the pieces of the hydrogen puzzle, as Alison Reeve, taskforce leader of Australia’s National Hydrogen Strategy, puts it, will take more than commitments from governments, it requires customers. At a session conducted as part of the Australian Clean Energy Summit, panel members discussed the future of hydrogen in Australia, both as an export earner and a domestic energy source. For manufacturers in particular, hydrogen offers that dense, energy rich power source that solar and wind are unable to deliver. The types of hydrogen available today include so called “brown” hydrogen, created from fossil fuels, “blue” hydrogen where carbon emissions are captured and stored, and “green” hydrogen made through electrolysis powered by renewable energy. 16 SEPTEMBER 2019 Manufacturers’ Monthly
The energy source was the focus of discussions at the Australian Clean Energy Summit. Although the technology is there, at any of these stages a hydrogen project requires financial help, as Martin Hablutzel, head of strategy at Siemens, highlighted. Notwithstanding trial projects in Gippsland for export and in Melbourne for being turned into car batteries, there is still a commercial gap to leap over for the sector.
Currently, however, that gap is narrowing. With the cost of renewables reducing and the technology for transportation advancing, hydrogen is close to reaching its potential, and it is vital that Australian domestic manufacturers play a part, as Alex Hewitt, executive director of CWP renewables pointed out. Whether that is in the marketing
of hydrogen’s potential to export markets through its domestic use and consumption, or the development of fuel cells that utilise hydrogen to run cars, buses and trucks, hydrogen projects will be looking for local partners to innovate and make their projects cheaper, noted Reeve. Finally, as John O’Brien, partner in Energy Transition at Deloitte stressed, hydrogen has the potential to shift difficult to decarbonise markets such as energy intensive manufacturing to clean solutions, something unachievable with electricity produced from renewable sources. This can also extend the lift of costly infrastructure such as iron ore smelters as they reach emission limits, but not their end-of-life. For hydrogen’s potential as a clean energy source to be fully realised, manufacturers have a important role to play. manmonthly.com.au
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Industry Focus Combining Lean manufacturing and Industry 4.0 Effective resource management requires a people-focussed approach to data, according to experts in the industry. Connor Pearce reports.
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HILE Industry 4.0 may be heralded as the fourth industrial revolution, and seemingly involve a wholesale reformulation of manufacturing processes, the technologies and processes that it encompasses are the result of the theories and innovations that came before it. In all the excitement that surrounds Industry 4.0, its predecessor in manufacturing organisational philosophy, Lean manufacturing, may have fallen by the wayside. But, in a manner that is appropriate for the theory’s tenets, the philosophy has quietly updated itself, and according to some industry observers, may be the key to unlocking Industry 4.0’s potential. Professor Amrik Sohal, at the Monash University Department of Management, has followed the implementation of Lean manufacturing principles for 30 years, and has seen the practice evolve. “What’s happened over the last half a century, across many industries, is that Lean has evolved, not only to comprise simple tools or techniques, but become a business philosophy,” said Sohal.
What’s happened over the last half a century, across many industries, is that Lean has evolved, not only to comprise simple tools or techniques, but become a business philosophy. Lean manufacturing, which began in mid 20th century Japan came to become synonymous with the company which founded it and is often called the Toyota Production System. Initially, the philosophy focussed on removing waste, or non-value adding activities from the production line. This then shifted to the supply chain as a whole and has now made it to the management suite. “Companies are using the philosophy that you have around Lean manufacturing as a means of operating the whole business, rather than simply using Lean on the shopfloor,” said Sohal. With the arrival of Industry 4.0, Lean manufacturing’s prominence has receded. A focus on automation and digitalisation has made ideas
The two manufacturing philosophies may have more in common than previously thought.
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around continuous improvement seem outdated, however, some proponents of Industry 4.0 technologies have seen how these technologies can be used to pursue the goals of Lean. With the massive accumulation of data being fed through ERPs and the digitalisation of production processes visualised and managed by software, Terri Hiskey, vice president of global product marketing at software company Epicor is immersed in the new world of Industry 4.0. But, Hiskey cautions, the data that is produced via Industrial Internet of Things (IIoT) devices is only as good as what it can tell an operator. “It’s fine if you’re getting data coming off of your machine, but what is that really telling you and how do you use that data to make that process better? To me, IIoT is the next wave of being Lean. It’s how we’re using technology to make all of those processes Leaner,” said Hiskey. Sohal also sees how technological advances under the umbrella of Industry 4.0 can allow businesses to take steps towards reducing waste. Taking the premise of Lean and updating it for the digital era. “The availability of data in large volumes nowadays can be used to do preplanning, so you know what’s coming, you’re much better informed of what the trends might be, and therefore you make much more informed decisions. Future
Terri Hiskey notes that before implementing automation, it’s important to know what you want to monitor. capacity planning, medium-term scheduling on the shop floor – you can do that much more effectively and only invest in what’s absolutely needed,” said Sohal. “Without all of that data, you may make some decisions that may result in waste.” In addition, Hiskey noted that without industrial software, the complex data analysis required to justify Lean manufacturing decisions was done by specialist individuals, who conducted complicated and time-consuming calculation. Today, the decreasing cost of digital software allows a much wider variety of organisation to adopt Lean manufacturing philosophies without the high initial costs and ongoing expense, as Hiskey outlined. “Technology is now helping think through these issues, where 20 or 30 years ago it was a reliance on experts or people having to do that,” said Hiskey. Significantly, what has changed in the past few decades is the cost of purchasing or implementing software which collates, analyses, and interprets data. Combined with the availability of sensors manmonthly.com.au
Industry Focus which have also reduced in price, a greater number of companies are able to adopt Lean Manufacturing principles. “IIoT technologies are now more accessible and affordable for everyone. They level the playing field for small and mid-sized businesses, because smarter SMEs can use these technologies and apply them and they don’t need the number of resources that large companies might have put into this,” said Hiskey. While this may seem to lead to a rapid adoption of data analytics technology under the banner of Industry 4.0, what makes this fourth industrial revolution so significant is that it is not an linear change. Rather, the exponential growth in the production of data requires new methods of interpretation, ones that, as Sohal points out, were not previously available in Lean manufacturing. “In Lean manufacturing, there was much more focus on getting employees involved or empowered to solve their own problems in the workplace,” said Sohal. “When you’re thinking about Industry 4.0, although the end results might be similar, we’re talking about a higher level of automation and hence fewer employees involved in carrying out processes on the shop-floor.” For Hiskey, this shifting of gears when it comes to automation requires a new approach to the capturing and understanding of data, one that requires greater foresight. “Manufacturers are struggling. They understand that if they put a sensor on a machine, they’re able to get data readings on temperature and vibration, and how much going through that machine. But you really have to have a sense of what is the optimum level of throughput with that machine, by what degree do you want to measure temperature, and at what degree is the temperature going to be too high and affect quality,” said Hiskey. “You have to define the optimal output of that machine, and once you have those thresholds, then you can put a sensor on that machine. manmonthly.com.au
“Where I’ve seen a lot of IoT projects get stuck is when people think that ‘Oh, if I put this sensor on my machine, it’s going to yield a lot of data and I’m going to understand more about my machine.’ But it’s
return to the fundamentals of Lean manufacturing. As an investment in digitalisation involves an initial cost, ensuring that the investment pays dividends requires smart thinking of what the final outcome will be.
Flavourtech utilised cloud computing to meet the needs of its dispersed workforce. not going to understand more about your machine unless you understand what it is you want to monitor,” said Hiskey. To return to the value of Lean in a highly automated workplace, and to avoid generating huge quantities of unneeded data, Sohal suggests a
“Once that investment in digitalisation is in place, we may end up with less flexibility, compared to what you might have under Lean. Lean is very much built on the basis of keeping things simple,” said Sohal. Hiskey also knows that too
Once that investment in digitalisation is in place, we may end up with less flexibility, compared to what you might have under Lean. Lean is very much built on the basis of keeping things simple. much data is not a good thing and can inhibit a company’s efforts to streamline their production systems. “You’re just opening yourself up to a whole bunch of stuff that isn’t meaningful to you. That’s contrary to the Lean philosophy of really trying to focus in on certain areas and be more productive.” According to findings from research and advisory firm Forresters, between 60 and 73 per cent of data collected within an enterprise goes unused. Avoiding creating such a waste of data requires intelligence at the planning stage, prior to any implementation of technology. Making these decisions at the outset requires a workforce that is adapted to the landscape of Industry 4.0, and one that is empowered to take advantage of the benefits of Industry 4.0. Just as Lean manufacturing freed up workers to be more productive by removing waste in terms of down time, if Industry 4.0 is going to be implemented successfully, then individuals will need to be equipped with the skills to interpret and understand the data produced by Industry 4.0 technologies. Barry McCarthy, treasurer of the Association for Manufacturing Excellence (AME), has been leading Lean learning workshops for AME, and has become concerned that the impact of Industry 4.0 on the human workforce is not being properly accounted for. Manufacturers’ Monthly SEPTEMBER 2019 19
Industry Focus “Most of the stuff that I’ve seen on Industry 4.0 is around the technology. Well, one of the technologies that we need to put on the table is how we manage it. If we don’t start to improve that, we’re not going to improve the happiness and reduce the stress of workers through all of this change. “It’s a big change for people and I don’t think they see or understand what’s coming. In this case, we have to give workers more autonomy rather than less, and if you look at Industry 4.0, it’s going to take a lot of base ground away from people. “If we don’t start to develop people into better problem solvers, thinkers, and innovators in our workplace, then there’s going to be no ground for us,” said McCarthy. Sohal also warns that in the focus
When you’re trying to attract these workers, you have to consider the employee experience. The application of Industry 4.0 technologies are things that attract more workers because they want to work with newer technology. Industry 4.0 system, you still need people. You can’t just think about people on the shop-floor, you need to think about people at the leadership level and those who are responsible for implementation,” said Sohal. Retaining the skills and knowledge of those who have had their hands in the production
software is well placed to do. “We’re keeping that in mind that people’s roles are shifting. We don’t expect someone who has worked on this production line for 20 years to now be able to delve into all the insights of data and understand what that’s telling you, but we can give you the software package that shows you the amount of waste
process will be key to the effective implementation of Industry 4.0 and for the technology to go towards Lean outcomes. However, bridging gaps in knowledge between those who have the practical knowledge on the shop floor and the data that Industry 4.0 generates, is something that
coming off this production line,” said Hiskey. While on the one hand this means making software systems intelligible for all who may be required to use them, on the other hand, utilising current and innovative systems can draw in a new generation of workers to manufacturing, who may have
Utilising new technology can attract a range of new workers. on technology and systems under Industry 4.0, the people who are going to implement the innovations, from the shop-floor to the management suite, are sometimes forgotten. “Regardless of what production system you have, a lean production system or a highly automated 20 SEPTEMBER 2019 Manufacturers’ Monthly
been put off by stereotypes about the industry. “When you’re trying to attract these workers, you have to consider the employee experience. The application of Industry 4.0 technologies are things that attract more workers because they want to work with newer technology. It’s not just the application of those technologies but it’s the ability now for them to work anytime, anywhere, for them to pick up their tablet or their phone and to be able to monitor these things from wherever they are,” said Hiskey. One example of this is Griffithbased manufacturer Flavourtech, which produces aromas for use in the food, beverage, and pharmaceutical industries. Flavourtech realised that as much of their work was done by employees while out on the road, they needed a software system that could adapt to the nature of their workforce. With this in mind, Epicor was able to develop a solution that enabled information to be inputted from mobile devices and be worked on collaboratively. In this case, with a clear use case and desired outcome, Industry 4.0 technologies were used successfully, and reduced waste as time did not need to be spent getting back to desktops at head office. Making these decisions and taking the humans that the technology is designed to benefit can lead to great outcomes but keeping in mind the value of the skills of people that machines cannot imitate will be paramount, according to McCarthy. “Data can be interpreted in any different way, and AI is not going to always interpret it properly at this point, so we have to have people that can interpret it correctly for the business. Interpretation of that data really requires good storytelling skills because they have to have a look at the data and be able to convince other people that this is what the data means,” said McCarthy. manmonthly.com.au
Issues & Insights Utilising universities for industrial innovation While engaging with university research can seem intimidating for SMEs, manufacturers can now more easily draw on the depth of knowledge academics provide. Connor Pearce reports.
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HILE researchers and manufacturers may seem to be worlds apart, the collaboration between the minds and focussed expertise of university academics, with the knowledge and hands-on understanding of manufactures, has the potential for innovation that can benefit businesses and universities. At times, the barriers between higher-level research and manufacturing processes can seem insurmountable. While larger corporations have their dedicated R&D departments, which can operate as dedicated research centres, SMEs and start-ups have had to ride the coat-tails of large enterprises, or wait for the trickle-down of proprietary research to reach the public domain. In addition, the large and sometimes archaic organisational structures of universities can seem opaque to outsiders. To cap it all off, researchers who have been cloistered in the world of academic publishing can have diverging priorities from manufacturers interested in adopting a single piece of innovative technology, or updating their processes to get ahead in the market. However, a recent confluence of disparate factors have started to break down the wall between the academy and shop floor. For universities, the traditional source of funding for research is shrinking. In the Mapping Australian Higher Education 2018 report, published by the Grattan Institute in 2018, the Commonwealth Government financed only a third of the cost of research. With research outcomes the primary method by which universities are ranked, maintaining excellence in this field means that universities have had to turn to other sources of funding. At the other end of the equation, Australian manufacturers have had 22 SEPTEMBER 2019 Manufacturers’ Monthly
New networks are bringing together universities for the benefit of manufacturers. to turn to innovation as a way to stay competitive in international markets. In an environment with relatively stable input costs and high wage costs, productivity improvements have had to be found in innovation. At an event in July at Western Sydney University’s (WSU) Werrington Launch Pad, representatives from the university, government, and industry discussed how to develop collaborative relationships. According to André Urfer, business development manager (acting) at WSU’s Research Engagement, Development and Innovation (REDI) Business office, the stereotypical image of a university academic is starting to break down at his institution. “Traditionally, when you think about research, researchers are sitting in offices, thinking about academically interesting problems and how to solve them. They come up with research proposals and they submit them to competitive funding bodies and hopefully they get funded,” said Urfer. “Five years ago, there was a major change in direction at WSU, and the management at
the time said to the researchers, ‘In addition to submitting competitive grants to support fundamental research, you are encouraged and empowered to go out there and start building research partnerships with organisations and work on applied problems that you can provide research solutions to. Organisations can be very broad, and could include not for profits, charities, SMEs or large enterprises’.” This was the call from upper levels of university management, and since then, governments have also taken on the role of match-maker between researchers and companies. Ingrid Marsh, director Industry Development, NSW Treasury, outlined how in the “NSW advanced manufacturing industry development strategy”, a foundational plank of the strategy is for government to bring together academics and manufacturers. “One of the four key areas that we are looking at with this strategy is advanced knowledge and this is where we’re passing on that knowledge between universities and industry,” said Marsh. Making this happen has been
government-funded networks that bring together universities and businesses in identified sectors. Anthony Morfa, business development manager of the NSW Smart Sensing Network (NSSN), puts it simply. “We’re one of four Department of Industry-funded networks in the state that are here to connect the various universities in the state with industry. We’re trying to bridge the gap between universities and people who are working in industry,” said Morfa. While Morfa is specifically working in the area of smart sensing, which involves sensors that measure the temperature, vibration and status of machines, and can interpret these data values to make decisions, the network already involves 550 experts and researchers from 110 different research institutes and centres. “They have specialised equipment, specialised knowledge and can immediately start working on problems with techniques that may not be available to every company,” said Morfa, describing the talents of the researchers in his network. However, making the connections between researchers and industry may be easier said than done, as John Scilly, smart manufacturing coordinator at WSU, highlighted. “A lot of the clients I talk to and the business I talk to really don’t know what’s available. You’ve got to go to the government websites and start having a look and investigating it. You need to make those sorts of inquiries to see what’s available,” said Scilly. Scilly identified a gulf between R&D facilities and small businesses and start-ups. “Most people think if you start talking to CSIRO or any other institution, ‘Woah, too big, too expensive, why would they want to manmonthly.com.au
Issues & Insights talk to me?’ We ran a couple of events to take that myth out of the concept of engaging with R&D institutions, and it’s delightful now to see the government take the baton on with this,” said Scilly.
Manufacturing and innovation today While universities and government have begun to open up to the idea of collaborating with industry on research, manufacturers have also begun to come to the table. National Director of Industry at the Advanced Manufacturing Growth Centre (AMGC), Michael Sharpe, outlined how manufacturing has changed in recent years to incorporate innovation as central to the business. “Manufacturing is much more than just making stuff, and much more than production. Manufacturing in today’s world means more around research and development and unlocking the value of world-class researchers,” said Sharpe. Combining the expertise of each sector is something that Sharpe is passionate about. “We’ve got some of the best minds right here in Australia, and I’ve been able to take professors out of our great universities and onto the factory floor right across the country. There’s an opportunity for them to learn something because we have outstanding business people in manufacturing right across the nation,” said Sharpe. Morfa was similarly enthusiastic about the potential of researchers when embedded with industry partners. “The research that is taking place at these universities is second to none and what our members are actually interested in doing is connecting with industry and understanding the challenges industry face and trying to participate and support industry as much as possible,” said Morfa. For businesses wishing to engage with researchers, the first step is to begin by talking with Morfa or a similar industry network, so that introductions can be handled by those who already have a list of available researchers. “What we do is facilitate manmonthly.com.au
connections to all of our member universities in one step. It actually removes the barrier of having to go to all of the universities in the state, asking them who might be an expert in that space, trying to make an introduction yourself, trying to then find funding, and repeating the entire process again with each university,” said Morfa. From the perspective of the NSW government, incorporating research into industry processes enables businesses to scale their business so that they can export to overseas markets.
certainly pushed my thinking outwards but without a sales pitch. It wasn’t like the consulting space. They were genuinely interested in finding things to help us. Academics have a really deep knowledge of things and would say things to us that would make you think ‘Wow’.” In Fox’s experience, utilising the expertise of the academics led to a fundamental re-evaluation of the business model of LA Services. “We started to think, ‘Do you need to sell these things or could you lease them?’ At that point in time, we hadn’t got our heads
One of the four key areas that we are looking at with this strategy is advanced knowledge and this is where we’re passing on that knowledge between universities and industry. “We’re here to support you on that area of growing your export potential and also looking at investment opportunities,” said Marsh. However, Marsh noted that outcomes may not be straightforward, and businesses should be open to researching finding unexpected facets of their business that could be improved. Citing one example of a business that had partnered with a university researcher, Marsh highlighted how the business was encouraged to incorporate a digital strategy as part of their business strategy. It began to look at how workforce development could lead to the business achieving its goals, outlined in its vision and mission statement.
Putting research into practice One industry participant at the event at WSU’s Launchpad was David Fox, general manager of LA Services. The company designs and fabricates large heat exchangers, pressure vessels, piping skids and gas pipelines. In being involved with researchers from WSU, Fox saw the difference between researchers and other business consultants. “It took some time, but it
fully around how that might work, but today we’re much clearer on how that might shift our business to different areas that we never imagined,” said Fox. Another industry participant, JP Liew, utilised the facilities of the business incubator at WSU to allow his business to be more flexible, and respond to changes in consumer demand. Liew makes Arduinocompatible, built-in breadboards from within the Werrington Park Corporate Centre where WSU Launchpad is located. “I’m able to make boards in any quantity I might wish, in any shapes I wish, any colours and any form factors, and have them packed right here, and shipped right from the desk here,” said Liew. Previously, Liew had used manufacturers based in China to produce his products. However, he found that this led to high capital costs and limited flexibility, compared with his current set up at WSU. “I can do on-demand manufacturing, starting with just one unit. There’s no capital tied up and I don’t have to communicate long distance. The most important factor is I’m able to react to change in just one
day. If someone places an order today, I can supply the product tomorrow. If something is wrong, I can fix the product in one day,” said Liew. Liew also utilised the NSW government’s TechVoucher scheme, which awards companies up to $15,000 in matched grants to partner with a research organisation and spoke of the value of collaboration. “When government and industry work together to support start-ups; every problem has a solution,” said Liew. What made these projects particularly successful, however, was the nature of the collaboration between industry and the selected university. As Morfa pointed out, researchers have their own set of requirements which, when properly understood, make for a positive outcome. “The other point that’s important to keep in mind is that researchers are first and foremost researchers. You have to find a common language or a common problem and something that allows them to research and test something that’s unknown. They want to see that their graduate students can write a thesis which requires original knowledge,” said Morfa. With this in mind, Scilly counselled attendees that not every matching will be the right one, and that manufacturers should go in with their eyes open as to the nature of the partnership. “Don’t be frightened to shop around. There’s a sense of intimidation on the part of manufacturers around research institutions; ‘Is it impertinent to ask about how much it is going to cost me?’ No it’s not. Ask it upfront, get a quote, and make sure you get a clear understanding of the cost of the exercise going forward,” said Scilly. With the NSW government citing research that formal collaboration between Australian businesses and universities could generate $10.6 billion a year in revenue for the partnering businesses, there is great potential for partnerships. However, this only will happen when such collaborations are built on mutual understandings. Manufacturers’ Monthly SEPTEMBER 2019 23
Manufacturing Strategies Embracing complexity Applying Lean principles to the complex workplaces of today requires an updating of its mantra and refocussing the methodology to account for the people in the workplace.
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RISTOTLE is often attributed as being the first to declare that the whole is greater than the sum of its parts. In the 2000 years since the Greek philosopher put these words together, the idea has become a taken for granted turn of phrase. In the 1980s, however, this simple maxim garnered some in-depth thinking, via the Santa Fe institute in New Mexico. Assembled there were a number of Nobel Prize winning scientists who founded the theory of complex systems. Understanding that the world is comprised of networks and organisations that cannot be fully understood by being broken down into their parts, the researchers have inspired a new way of looking at the world; taking Aristotle’s phrase and applying it to the world at large. In many ways, Barry McCarthy, treasurer of the Association for Manufacturing Excellence (AME), is putting that theory into practice. McCarthy is applying complex systems theory and its associated understanding of emergence – the properties that are the result of complex systems – to the workplace, and manufacturing into particular. Understanding that the emergent properties of complex systems cannot be predicted, McCarthy suggests that, “what we have to do is develop systems in the workplace that can actually handle complexity”. Until the adoption of complex systems theory, workplaces were broken down into their individual parts. As the pace of both social and technological change speeds up, it is becoming increasingly impossible to account for a system’s properties in this method, according to McCarthy. “What a lot of people are trying to do at the moment is combat complexity with simplicity and it’s just not working. What we want to try and do is make a really responsive workforce that can 24 SEPTEMBER 2019 Manufacturers’ Monthly
Important in this new understanding of lean is employees finding their “flow”.
respond to all of the complexities and challenges that are thrown at them and they can deal with them. We can’t do that if we don’t engage our team members and our workers and make them really good problem solvers,” said McCarthy. Taking the principles of Lean manufacturing and applying them to the people in a manufacturing workplace, McCarthy has updated the tenets of the process management system first utilised by Toyota in the mid 20th century. “The focus of Lean manufacturing has been very much on continuous improvement, or slimming businesses down, and I think a truer interpretation is to get people involved and make it more people centric.” Sharing the new interpretation of Lean theory, which has lost its singular emphasis on manufacturing, McCarthy will lead a series of workshops held by the AME around the country, the first being on Monday, August 26 in Melbourne. “The interpretation we’re trying to take at the moment in this second wave of Lean is to make it about taking stress out of people’s work,” said McCarthy.
Updating Lean for the modern workplace Lean manufacturing, which was first implemented by Toyota and known as the Toyota Production System, was all about reducing waste and non-value adding activities. This lead to Lean becoming synonymous with the concept of just-in-time production, where stock levels were kept low and delays in production minimal. While this made some companies, that adopted these principles extremely successful, McCarthy, who studied these concepts when working for Toyota, noted how this thinking left out the people who were doing the work. “These kinds of concepts of leaning a business down tend to add stress in their current form, so we’re trying to put out really good processes at work. We can make work a lot more enjoyable if we take the stress out of it,” said McCarthy. Taking the principles of Lean and adapting them to the interactions between humans, McCarthy and others have found that just like on a production line or in a supply chain, there are wastes in the exchanges between people that make up much of work life.
“You find yourself getting into the flow of work and then a piece of data or information is missing and then you have to go looking for it, or you have to go and ring someone up because they’re not supplying you with everything you need to get the job done. “I reckon if you really looked at your own job, or jobs that you’ve had in the past, there’s so much waste built into having to get permissions and waiting for decisions, that just seem basic to you,” said McCarthy. Describing the ways to remove these wastes in teams or groups, McCarthy advocates for individual works to be given judgement points and trusted with the responsibility to make decisions on your own, after they’ve been equipped with the knowledge and expertise required through training. “If we can empower team members to have the information ready for them when they want to do their work, then that eliminates that waste,” summarised McCarthy. In offices these wastes can be invisible, as they are the conversations and delays that are not visualised in a spread sheet of inventory levels or lead times. manmonthly.com.au
Manufacturing Strategies Similarly, on the shop floor or on a production line, stoppages can result from needing a decision to be made by someone in the chain of command. Awaiting approvals can slow down a workflow, and result in strains and stressors. McCarthy has continued his connection with Toyota, and often takes executives from Australia and the US to view Toyota’s plant in Japan. While in the past this was to demonstrate the Lean manufacturing capabilities of the production line, more recently the focus has shifted to what’s going on inside the brains of those involved in assembly. “If you watch an automotive production line, you’ll see the cars going down, one every 30 seconds or so. A lot of people walk in and say ‘That’s very repetitive work. The people that are doing it must be brain dead.’ In fact, it’s the actual opposite because they’ve got high variation in their work and so every 30 seconds, they may be doing a different pattern of work,” said McCarthy. With a happy and productive workplace as the ultimate goal, McCarthy has augmented the ideas of Lean manufacturing with the values of positive psychology, which argues that when people find their work enjoyable through variation and by playing to their talents, you can find a person’s “flow”. McCarthy argues that similar to tennis players
who can carry a rally, there is a positive emotional benefit to being in sync and engaged. “Where we were looking in the past at parts flow, what we’re looking at now is flow in people’s work, not only in the production environment but also in the office environment,” said McCarthy.
Go with the “flow” Finding techniques to visualise or solidify the people-to-people wastes will be the focus of each of the workshops that AME will host. Although in the past these techniques were imparted at AME’s annual conference, the newer workshop format is about getting participants to find applicable situations that they can bring back to their own workplace. “We’re moving more towards the workshop format so that people can get a bit more practical and hands on,” said McCarthy. “We can give them real examples and scenarios to work in and we can point out the theory by getting them to do exercises and simulations.” During the day-long workshops, attendees will be encouraged to think about the ways that their jobs and those of their teams are crafted so that work can be designed to promote a sense of flow across an entire organisation. The program is designed with the idea that applying
these principles will encourage businesses to think about how they are going to respond to the changes to work that are on the horizon. “What’s commonly thought is that it’s the workers that have to constantly change what they do by having different roles with technology. What we’re not appreciating is that managers need to have a good shake up as well and change the way they work,” said McCarthy. From McCarthy’s perspective, the roles that humans will play in a future where automation and AI has a greater role in the workplace will undoubtedly change, and by empowering humans to use their innately unique capacities, workplaces can remain happy and productive. “The difference that humanity has is that we have thinking capabilities. In a lot of our workplaces, we don’t engage people to think, we just tell them, ‘Do what you’re told and get your work done’. “We have to be able to say to them, ‘We really appreciate your thinking, you’re close to the action, you have to make decisions because you’ll know more about the processes in many cases than a manager or a supervisor’. What happens then is it allows people to engage their entire mind and body and they’ll have a better
environment to work in,” said McCarthy. While empowering individuals across the organisation to be responsible and make decisions may seem like a radical shift, McCarthy argues that was is required is simply breaking down the choke points, just as Lean Manufacturing recommended back in the 20th century. “A lot of management is controlled by what’s in the manager’s head and everything has to go through that and that’s the bottle neck. If we can take those rules out of their head, put it into the workplace and embed it in the workplace, the workers don’t have to go to the bottle neck,” said McCarthy. Creating a workplace that can be flexible to respond to the challenges that arise through the increasing complexity of the modern work of work, requires thinking laterally. “If we can do that then we’ll always have a competitive advantage against the replacement of workers by AI,” said McCarthy. “We’ve got to get smarter about how we work, not work harder.” McCarthy will be hosting Lean Learning Days on October 15 in Brisbane and December 10 in Melbourne. For more information events visit www.ame.org.au or call 1300 AME AUS or email ame@ame.org.au.
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Safety Understanding where people fit in Industry 4.0 While Industry 4.0 may seem to encourage the replacement of people with machines, when it comes to safety, having an understanding of the importance of people is paramount. In an exclusive interview, Susanne Kunschert of Pilz speaks with Manufacturers’ Monthly.
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HE managing partner of automation technology firm Pilz, Susanne Kunschert, confesses, “I’m not so digital”. Sitting in a meeting room of the company’s utilitarian yet homely Australian head office in Mulgrave, in the south-eastern suburbs of Melbourne, Kunschert goes on to describe her relationship to technology. “I’m not on Facebook, or any social media, because I’m not that person. I still like to read paper books and read paper newspapers.” Instead, Kunschert counters, “as a person, I need people, I need to talk”. Employees of the global company, of more than 2,000 employees spread across more than 40 countries, also like to talk. The company has adopted a meeting strategy called “scrum”, where employees come together, write down issues on Post-It notes, and speak to each other, face-to-face. Originating in the company’s Ireland office, Kunschert is happy to see the strategy go global. “For me, it’s just wonderful and it shows me that people need people,” said Kunschert. The irony of this technique emerging from the office that has the most to do with Pilz’s software systems is not lost on Kunschert either. Moreover, this is a company that is invested in being at the forefront of automation technology and the digitalisation of the manufacturing industry. “It’s really funny because we get so digital and [the] scrum brings the people back together again. On the one, hand you have all the digital processes and then, on the other hand, in scrum, you meet again, you talk to each other, you don’t write each other emails.” This is not to say the company is not committed to its technology – far 26 SEPTEMBER 2019 Manufacturers’ Monthly
Taking people into account has been key to Pilz’s success, according to Susanne Kunschert (left) and Mattias Brinkmann (right).
from it, according to Kunschert. “The technical knowledge is really important and we love technical stuff, it’s in our genes.” Passing this on to their customers is core to the Pilz ethos, and when customers purchase or consult with Pilz on their products, the expert training and advice comes as part of the package. “It’s important for us to give that technical knowledge to the customer because you really want the customer to be knowledgeable. More than just selling you the product, we want them to really understand the background too.”
Making Industry 4.0 safe Since its founding in 1948 by Hermann Pilz as a glass blowing company, Pilz has been looking towards how safety interacts with the latest industrial
technology. While manufacturing glass apparatuses for medical technology, the company also produced mercury relays. When Hermann’s son Peter Pilz took over, the company developed its line of automation products, including a programmable logic controller (PLC). After Peter’s untimely death in 1975, his wife, Renate Pilz, took over the management of the company. Renate’s tenure, up until 2018, was characterised by the company’s global success as it expanded and introduced products that became familiar sights around the world, such as the Pilz E-STOP relay, PNOZ. This combination of innovative technology and a focus on safety became the company’s calling card. Behind this success, however, was the company’s commitment to connect with each of its customers on an individual level, as Matthias
Brinkmann, regional sales manager for Pilz’s Asia-Pacific operations, highlighted. “First, you must impart an understanding of safety to the customer before you can implement the functional solution. We have to understand the applications and needs – where is the interaction between the worker and the machine? Based on this, we can come up with a product or a solution to help them. But the understanding of safety is the first priority.” One area where Pilz is dedicated to providing a safe solution is the closer interaction between humans and machines – a field that proponents of Industry 4.0 have defined as central to the successful adoption of Industry 4.0 practices. Aware of the opportunities that this can present, Pilz has continued to manmonthly.com.au
Safety innovate its product solutions to allow companies to adopt Industry 4.0 practices in a safe manner. “Increased automation and digitalisation in many industries will lead to more efficiency,” said Kunschert. Previously, automated processes driven by robotics in a production system were separated from humans by walls and screens to avoid any interaction, except for maintenance. Industry 4.0 and the development of cobots has brought humans and machines into contact and created new challenges for those committed to safety. “Before, they were separated and now, bringing them together, you reach more efficiency,” said Kunschert. “At the same time, the number of semi-autonomous operating applications will rise, and in future, advanced safe sensors and controls technologies will reduce the use of protective measures such as fences and will allow efficient interaction and collaboration between man and machine.” Understanding that this change in the way that industrial production lines operate is the first step. Taking steps to ensure that collaboration between humans and machines can be safe is the next, and one that Pilz is actively developing. “We have to ensure that no unintended usage or programming of the product can happen, that only authorised people that know what they are doing, who are following the requirements, can access the machine,” said Brinkmann. With collaborative robots bringing humans and robots closer, “security and safety are more and more merging together”, said Brinkmann. While this trend towards closer interactions between humans and machines is occurring at a high level, each individual production line or product is highly specialised, and is partly the reason why Pilz staff work so closely with each of their customers. “All the applications are different,” said Brinkmann. “The railway application is totally different from the injection moulding manmonthly.com.au
A global solution
one in Cork, and she just opened up a subsidiary in Cork. “In the beginning it was difficult. I think it took us seven years to really get the software team integrated with the hardware team, but because we started early, we’re there so we don’t need to do a big step now,” said Kunschert. Bringing the German hardware team together with the Irish software team took negotiating different languages and different ways of working, but ultimately, it was that focus on people to people interactions that tied the two teams together. Today, that foresight has paid off, and Pilz is focussed on creating digital
Transporting its products and philosophies from Europe to around the world, Pilz has seen the growth of safety practices globally. While Europe, with its common safety standards set by the EU, provides a unified landscape to work within, the multiplicity of standards across Asia requires a flexible approach. “In Europe, the Machinery Directive sets the common standard, which is valid for all over Europe. This is not available in Asia, there’s no common standard, there are Japanese, Chinese, or Korean standards available,” said Brinkmann. “We see that safety is more and more adopted, yet the way is sometimes slightly different.” With multiple offices across Asia and the Pacific, Pilz provides one model of how to conduct business practices across multiple jurisdictions. While Kunschert notes that some factories in the region have only just begun to adopt standard safety practices, others have implemented
solutions where applicable, such as preventative maintenance. Combining hardware with software, Pilz has developed an app that runs off an industrial version of a Raspberry Pi, which is connected to a PLC. The app analyses the data from the machine and can send an alert if the machine is not functioning correctly.
fully automated production process, with humans only involved in maintenance. Kunschert describes working in these varied locations as a balancing act, and highlights that the success of Pilz’s operations requires a focus on the fundamentals that connect across national borders. “At Pilz, I can really feel like we’re
We have to ensure that no unintended usage or programming of the product can happen, that only authorised people that know what they are doing, who are following the requirements, can access the machine. machinery and the hazards are different. Therefore, we talk about safety first and then we offer, often with our products, a solution for the customer.” Increasingly, these solutions not only depend upon the red and yellow pieces of hardware that Pilz is recognised for, but by the software and systems that support each button or switch. Now a core part of the business, Kunschert describes how incorporating software and hardware was not an easy process, but one that her mother saw coming early on. “My mother was always very future oriented and she realised 20 years ago that hardware is coming to The company recently celebrated being in Australia for 21 years.
an end and that we need software. At that time, there were not enough software developers, especially in Stuttgart, where we live. There is Bosch, Mercedes, and Porsche, all the students were already taken. My mother said, ‘We really need it’, so she looked for good software universities and there’s an excellent
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Safety all one, no matter where you would be. While the politicians want to build walls and they want to get out of the European Union, if the people and the companies stick together, then I hope it will work. It’s really important to work together with all these countries, and at Pilz, the people talk to each other. They like each other and they work with each other,” said Kunschert. Part of what has kept the company expanding globally and able to deal with the changes that they have encountered, according to Kunschert, is the investment the company makes in research and development (R&D). With 20 per cent of sales profits invested in R&D, Pilz claims to be one of the most innovative companies in automation technology. “If we were to stick with the safety relay PNOZ, I think we could
close down the company in a couple of years. So, it’s good we invested that money in automation topics and robotics topics,” said Kunschert. Describing how this fits with the company’s broader ethos, Kunschert borrows the term “spirit”, from the company’s motto “the spirit of safety”. “Doing that research keeps the spirit of technology in the company. We have many spirits, not only the spirit of safety, the spirit of technology, the spirit of automation, and the spirit of people.”
The spirit of Pilz While people and automation may not always go together, the future of humans within an industry that is heading towards a digital and robotic future is something that Kunschert is grappling with. While undergoing its own
transformation with the adoption of Industry 4.0 in its production facilities, Pilz has identified four core values that define the company and its approach to its employees. These are: mindfulness and thoroughness, honesty and openness, loyalty and reliability, and helpfulness and diligence. Unlike other company values however, these are embodied at Pilz, not inscribed. “When you walk through our company, you will not find a poster with the values on it, because we deeply believe that if they’re on paper they stay on paper,” said Kunschert. “You have to live what you believe in.” While in other cases, automation has led to the reduction in human work hours, with these values in mind, Kunschert, who shares management of the company with her brother, Thomas Pilz, recast what automation would
mean in light of these values. “I was saying to my brother, ‘let’s maintain a percentage of people in the company.’ I don’t know if this is romantic or not, but I want to draw a line for myself. After all, the machine needs to serve us, otherwise it would be absurd,” said Kunschert. Within Pilz itself, the company is taking on automation, however hopes that in itemising the concept, it can ensure that the technology has a positive impact on those who work for the firm. “You have to break down the big picture of automation into individual steps. Then we can all focus on these steps,” said Kunschert. Ensuring that technology serves the people, Pilz and Kunschert are highlighting that safety needs much more than technology, it needs people.
The “ambassadors of safety” reach an important milestone
the idea was ‘let’s make Australia safe’.”
had at the outset.
Susanne Kunschert, managing partner of Pilz,
“We became the ambassador for safety with our
On August 1, Pilz employees, families, customers,
remembered how her mother, Renate Pilz, opened the
involvement in AS4024, through seminars and just
and partners donned their finest and descended
Australian branch as part of the internationalisation
talking to people,” said Gherashe. “We all came
into the underwater world of SEA LIFE Melbourne.
of the company and its expansion outside of Europe
to love, to know, to talk, and to breathe the life of
The occasion was the celebration of Pilz’s past two
to other jurisdictions with their own understandings
safety.”
decades in Australia, and a time for all to think
of safety.
Demonstrating this commitment, Gherashe asked
about that “spirit of safety” that was first brought to
“Since the opening in 1998, we have had a great
the attendees to reflect on how they arrived at the
Australia by Renate Pilz at the end of last century.
relationship with Australia. We are growing with the
event, whether by bus, plane, train, or car, and how
According to Don Gherashe, operations manager
Australian market and it’s really fabulous. Australia
they depended on the safety inbuilt into each mode
at Pilz Australia, the beginnings of the safety
is unique with its own rules, and this is what makes
of transport.
automation company’s Australian outpost was
it fun because you learn about the mentality of the
“Subconsciously, we just assumed that all the
humble, but the ambition was noble.
people and the regulations.”
engineers and the designers were following best
“We started as a Filofax folder on a kitchen table, as
Pilz was heavily involved in the formulation of safety
practice, following the law and standards. Most
a subsidiary with two employees. In that beginning,
standards in Australia and began fulfilling the aim it
employees, when they go to work, they don’t think ‘Am I going to go home today with all my fingers?’ But our job is to try and help to keep people safe,” said Gherashe. This thinking has seen Pilz grow from that initial folder to an office first on Ricketts Road in Mount Waverly, then to its current location on Miles Street in Mulgrave. The business has also expanded to comprise 25 staff based both in Australia and New Zealand, and in sharing its spirit of safety has established relationships and connections with clients and customers, akin to familial ties. Not only were current customers represented at the evening, but past clients who have now become close friends to those at Pilz. Looking toward the future, Kunschert noted that these ties will only grow stronger between Pilz and those that it services, even as the industry confronts
The celebration brought together the entire Pilz family.
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change. “We’re looking forward to a digital future, together with you.”
manmonthly.com.au
Safety
With expansion into new areas, GMJ must continue to innovate in safety.
Ensuring reliability and flexibility at altitude Making mobile elevating work platforms safe and secure has led to the development of new systems that meet customer needs.
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S a manufacturer of mobile elevating work platforms for almost 35 years, GMJ Equipment is used to surveying the landscape from above. When working at a heights, safety becomes an even greater priority than when on the ground, and with an elevating perspective, GMJ has selected Pilz to provide its safety systems for the last ten years. Managing director of GMJ, Joe Cetraro, had already been interacting with Pilz, but it was visiting their booth at bauma, the Munich-based trade fair for the building and construction industry which had a quarter of a million visitors last year, which led to Cetraro to see how Pilz could further help and develop his business. “Pilz was very professional in their approach and in showing how their manmonthly.com.au
systems work. A wide range of new systems and devices were available and Pilz personnel were prepared to further assist in designing and further improving our current safety system,” said Cetraro. The implementation of the latest Australian Standard AS1418.11 10 -111, (Mobile Elevating Work Platforms - MEWP), set out requirements for safety that were not previously present, mainly safety devices to ensure stabiliser pressure on ground and category 3 emergency stops and based on the knowledge that Cetraro had of Pilz, GMJ decided to select the German automation technology company. “We needed someone that could help us with these safety upgrades and Pilz were there for us. They assisted us with the design of the safety systems that we now have in place,” said Cetraro.
GMJ is a manufacturer and distributor of mobile elevating work platforms to both government authorities and the private sector. Their products help satisfy the needs of various industries such as electrical services, telecommunications, emergency services and vegetation
management. One of the most significant safety issues is having platforms that can safely allow operators to work on live power lines. If an incident occurs in this context, the consequences can be catastrophic. “The power lines don’t get turned off, so you’ve got to have proper Pilz’s equipment have been fundamental for GMJ.
Manufacturers’ Monthly SEPTEMBER 2019 29
Safety Working at heights and in high-risk situations makes safety a key concern for GMJ.
systems in place that are failsafe,” said Cetraro. Another major factor to take into account for GMJ is that the platforms are truck mounted and vibration becomes a critical issue for many electrical compnents. To confront these issues, GMJ selected the Pilz PNOZmulti safety system to be installed on their platforms across the GMJ product line. Flavio Tur, operations manager at GMJ, noted how well this system dealt with the key challenges in the operating environment that GMJ was working within. “The Pilz system complies with and exceeds all our safety requirements. One of our biggest concerns when we started using this system was whether it would stand the test of time regarding vibration and variable voltages, and it did easily,” said Tur. With it coming up to 10 years since the first Pilz systems were installed on GMJ platforms, the systems will have to be checked for ongoing performance, however, Tur believes that the PNOZmulti will need minimal renewal. Part of GMJ’s reputation and selling point to customers is the reliability of the platforms. According to Cetraro, Pilz’s
GMJ has worked with Pilz for almost a decade on safety systems.
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equipment is essential in ensuring this reputation. “We know that the end users target our equipment because of their reliability. Even though they’re remotely based we can fault find and repair in the systems that we use,” said Cetraro. With one of the main advantages of the PNOZmulti being its modular nature, GMJ have adapted the system to suit their individual needs. With their equipment being used to operate in out of the way areas, whether in mines or electrical lines in remote areas, the equipment has to be flexible and adaptable. At the beginning, Tur and the GMJ team worked with Pilz representatives to find the right fit. “Pilz firstly started developing the software and then gave us a good idea on how to run our systems to suit the multi mini, which was really good because that made our system really flexible,” said Tur. Initially, one of the most significant features for GMJ was the fact that the system is easily replaceable, which fit into a core use case for GMJ. “The fact that it has a SIM card as the main memory makes it so that if there’s any problem with the system we can replace the multi mini and keep the program in the SIM card. It was really good for us, especially because our machines are in remote areas,” said Tur. From that basis of mutual understanding, GMJ and Pilz have worked together to develop new solutions that has enabled GMJ to extend its capabilities and the quality of its offering to customers. The latest area where
this collaboration was explored was through the installation of screens on the platforms which increase the useability of the safety system and its user-friendliness. “We can now interface the PNOZmulti with a screen which
be present, greatly increasing efficiency and adaptability. Developing solutions between the two companies has led to Pilz bringing its in house engineers to work on issues for GMJ, which, due to the nature of its client base, sets
GMJ utilises the Pilz PNOZmulti Mini to ensure the safety of their systems. simplifies installation and increases diagnostic capabiities for our customers,” said Tur. The next step for GMJ and Pilz is designing a system that can be monitored and accessed remotely via a mobile internet network. “Pilz has been working with us for the last six months in trying to supply us with a mobile 3G network adaptor that will let us connect remotely to the machines wherever they are. They also offer us a cloud-based system, which allows you to remotely connect to a machine as long as there is internet connectivity,” said Tur This will enable GMJ to make updates to the system and guide the rectification of any issues to the machine without needing to
high standards for safety. “We’re continually investing in research and development in upgrading our equipment to cater for the electrical authorities and government departments,” explained Cetraro, noting that an electrical authority has different requirements for an elevating work platform than a painter or a tree clearer, but GMJ treats and supplies them all equally and to the same safety level. “GMJ has been manufacturing elevating work platforms for close to 35 years and safety has always been a paramount feature of our industry,” said Cetraro. “In the future, I can only see it getting bigger.” manmonthly.com.au
Chains and Hoists Polyurethane belt removes need for lubrication New belts made from polyurethane avoid issues inherent in roller chain technology. Manufacturers’ Monthly reports.
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HE utilisation of roller chains has been a standard feature of industrial production lines and manufacturing plants since its invention in 1880. However, recent advances in materials manufacturing have enabled the development of alternatives to the ubiquitous roller chain and solutions to their drawbacks. With a number of moving parts as core to their production and application, roller chains require regular lubrication to continue operating efficiently. While this may be of little concern when applied in consumer or domestic applications, roller chains in industrial applications are under heavier stress and may require significant amounts of lubrication. In addition to the cost of the lubricant, its application has costs in labour hours spent in maintenance and can lead to contamination at other points in the production line. Furthermore, even when properly maintained, roller chains are susceptible to breaking, causing drive failure. The Gates Poly Chain GT Carbon, distributed across Australia by CBC, overcomes roller chain issues. Built from a unique polyurethane compound, the synchronous belt requires no lubrication and is quieter when used in manufacturing applications. In an industrial application, where cleanliness is required, the lack of lubrication needed on the Poly Chain removes the threat of contamination, or of lubricant seeping onto other products. For example, CBC has found these unique features of the Poly Chain is applicable to the timber processing industries. In mills and timber plants where chips and pulp are present in the plant environment, the Poly Chain is unaffected by the wash downs that are required to remove the bymanmonthly.com.au
products of timber processing. The polyurethane compound is inert not only to water but to most acids and chemicals, too. This makes a drive that is fitted with the Gates Poly Chain suitable for chemical manufacturing industries, as well as other manufacturing processes where chemicals are a common presence. The resistance and overall stability of the Poly Chain ensures that the product has a long life, while being able to sustain a similar capacity to traditional roller chains. The belt is designed for high-torque, lowspeed drives in any industry, and can withstand shocks and surge loading. In testing the product, Gates has found that a Poly Chain outlasts a roller chain by four to one. For manufacturing plants where replacing a product such as a chain can lead to lowered productivity and plant down time, extending product life will lead to increases in production output. According to Wayne D’Souza, national accounts manager, manufacturing and industrial at CBC, the Poly Chain stands alone in its field. “There is no other belt on the market like Poly Chain,” said D’Souza. This product differentiation has led to specialised and particular use cases. For example, when applied to a horse recovery support, the Poly Chain had to withstand constant submersion in water during its operation. Designed to withstand wet or hazardous environments, the carbon-fibre tensile cords continue their load-carrying qualities even under extreme circumstances. The Poly Chain’s effectiveness not only comes down to its construction but is dependent upon the proper installation of the chain and associated sprocket. The associated Poly Chain GT sprocket can be installed where the previous roller chain sprocket was located and can be configured widthfor-width with the previous set up.
Once this installation is complete, the savings from improved efficiency can be realised, said D’Souza. “Yes, there is an initial cost involved, but the total cost of ownership (TCO) far outweighs the cost of replacing a roller chain every ‘X’ amount of times, adding lubrication to it, constantly checking it for stretch and so forth,” said D’Souza. The Poly Chain accounts for the uniqueness of each application with over 120,000 possible drive combinations. CBC can determine the correct belt and sprocket combination done through Gates’s drive design program, D’Souza explained. “We input all the parameters – the powers, the speed to centre distance from one sprocket to another, the environment it’s in – and then, it states which Poly Chain belt and sprocket you need to use, the specifications, and the tensioning requirements,” said D’Souza. Installation can be carried out by a purchaser’s own fitters or maintenance engineers, overseen by engineers from CBC, or installed by CBC themselves. Having the correct alignment is key, as this is essential for the improvements that Poly Chain offers. Installation is made easier due to Poly Chain’s light weight, when compared with metal roller chains. Mounted onto its sprocket, the Poly Chain’s teeth fit into the sprocket’s notches with concave side walls to ensure a closer fit. This increases energy savings when compared with conventional V-belts, as well as reducing
the heat that is generated by rapid flexing, which can cause premature belt failure. While the technologies can lead to the Poly Chain being a “set-andforget” solution, CBC ensures that the belt continues to meet its promised possibilities through communication with the customer. “Our engineering teams are constantly asking our customers questions,’” said D’Souza. While this does not stop the Poly Chain from being part of a manufacturing plant’s regular maintenance schedule, the lack of lubrication as well as the long life of the product reduces labour hours spent on maintaining a roller chain. “It’s the go-to product when a customer says, ‘I’ve got an issue with a roller chain, or it’s going through way too much lubricant’,” said D’Souza. “The Poly Chain is a problem-solving product.” Requiring no lubrication, the Poly Chain is a step forward from roller chains.
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Welding Improve profits, technical knowledge, and market share with AS/NZS ISO 3834 certification Demystifying AS/NZS ISO 3834 and how it applies to manufacturers.
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ANY companies have achieved certification to ISO 9001 with respect to their quality management systems. But where significant use is made of a special process like welding, this certification on its own cannot demonstrate the capability of a company to manufacture products of the required quality. Certification to AS/NZS ISO 3834 Quality requirements for fusion welding of metallic materials overcomes this shortfall, boosting a
company’s ability to sell its products in both domestic and overseas markets.
What is AS/NZS ISO 3834 certification? AS/NZS ISO 3834 is a factory production control system, drafted to complement – rather than replace – quality management systems such as ISO 9001. Geoff Crittenden, chief executive officer, Weld Australia, said, “as a factory production control
system, certification to AS/NZS ISO 3834 helps businesses operate more efficiently, improving client satisfaction”. “AS/NZS ISO 3834 certification increases the likelihood of global supply chain opportunities and repeat business, bolstering profitability. Certification helps Australian businesses demonstrate their ability to deliver a compliant, quality fusion welded product on time and to budget.” “In addition, AS/NZS ISO 3834
is the minimum benchmark for welding quality globally. As more companies become certified to the Standard, those without it will find it harder to win work from local and international suppliers alike,” said Crittenden.
Why you need AS/NZS ISO 3834 certification Many companies across the world are certified to ISO 9001 for their quality management systems. However, where a special process
Certification demonstrates a company’s commitment to quality at all stages of the production process.
32 SEPTEMBER 2019 Manufacturers’ Monthly
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Welding such as fusion welding is used, ISO 9001 fails to demonstrate the specialist capability required by a company to manufacture products according to the necessary quality standard. AS/NZS ISO 3834 certification overcomes this shortfall by controlling the entire lifecycle of the welding process, from design right through to inspection. AS/NZS ISO 3834 considers all aspects that could affect weld quality. This type of approach is essential because it is impossible to undertake complete verification of a welded joint without destroying it. Unfortunately, inspection after completion does not guarantee weld serviceability. As such, quality must be built into the welding process, right from the beginning.
What is a factory production control system? A factory product control system is essentially a documented system that enables you to: • Monitor, document, and demonstrate that you are meeting all the processes, technical specifications, and performance standards required for fusion welded products. • Keep records of any nonconforming products, processes, or materials to make any requisite improvements. AS/NZS ISO 3834 builds factory production control into welding management to ensure quality, optimise manufacturing costs, and reduce expensive repairs and rework. Factory product control is a structured approach that covers the seven main phases of the welding process, as outlined below.
1. Requirements and technical review Before submitting a proposal, manufacturers have a duty to review contractual and other requirements to confirm that all required information and specifications are available, and the scope of work is within their capabilities. This review process helps avoids costly misunderstandings and variations after the quotation or purchase order stage. It also gives the client confidence that the welded product will not only be compliant but will be delivered on time and to budget.
2. Sub-contracting Manufacturers often sub-contract out parts of the fabrication process (such as welding, inspection, NDT, heat treatment, and so on), while retaining ultimate responsibility for the quality of the product delivered. Evaluation, control, transmission, and recording of documentation and information pertaining to subcontractor processes ensures that all specifications and quality standards are met as if the process had been handled in-house.
3. Personnel AS/NZS ISO 3834 increases the technical knowledge of all levels of manmonthly.com.au
personnel involved in the welding process, from trades and inspectors, through to supervisors and management. Increased technical understanding ensures that the workforce possesses all necessary capabilities and authority to deliver each project. In addition, having well defined roles and responsibilities for personnel helps optimise the production process by avoiding duplication and omission of tasks. 3.1 The welding coordinator AS/NZS ISO 3834 emphasises the importance of the welding coordinator. Usually, welding roles and tasks are shared among a team of several people, under the leadership of a nominated welding coordinator. As they assume responsibility for all welding activities, the knowledge and competency of the welding coordinator is of paramount importance. Companies that are not ready to train or employ a welding coordinator can sub-contract out this responsibility.
4. Equipment Maintaining accurate, up-todate equipment records enables manufacturers to provide potential clients an immediate snapshot of their capabilities and can help manufacturers identify areas for expansion. In addition, accurate records help ensure that equipment undergoes regular safety and performance inspections and maintenance, keeping productivity high and minimising delays due to equipment break-downs.
5. Planning The five “Ps”; proper planning prevents poor performance. Detailed planning of welding activities, from the fabrication sequence through to the development of welding procedures and environmental constraints, enables a manufacturer to accurately estimate project scope and timeframe. In-depth project planning, from the tender to the delivery of the product, instils confidence in the client that the product will be delivered within the promised timeframe.
6. Inspection It is impossible to make a complete verification of a welded joint without destroying it. As such, inspection after completion does not guarantee weld serviceability. Quality must be built into the welded joint, with inspections carried out prior to, during, and after welding. By maintaining detailed records of inspections and non-conformance issues, manufacturers can deliver quality welded products, and convert every non-conformance issue into an opportunity for improvement.
7. Storage and traceability The materials used in production contribute significantly to the quality of the final welded product. The correct plates, forgings, castings, and consumables must be selected during the procurement phase. All these materials must then be carefully stored to avoid mixing, scrapping, and damage, as well as the use of unidentifiable materials. Keeping in-depth, accurate storage and traceability records gives clients peace of mind that a manufacturer has full control over its processes and, therefore, the final product. Storage and traceability records also help manufacturers maintain rigorous expense management processes and reduce unnecessary waste and product rejection.
Why choose Weld Australia for Certification? Not only is Weld Australia a highly respected independent third-party, we are the International Institute of Welding’s (IIW) authorised national body. This makes Weld Australia the premier welding certification body in Australia. As such, Weld Australia certification to AS/NZS ISO 3834 is internationally recognised, and highly regarded and respected throughout Australia’s welding and industrial sectors. For further information, visit iso3834.com. au or contact Weld Australia at: iso3834@ weldaustralia.com.au. Manufacturers’ Monthly SEPTEMBER 2019 33
Instrumentation Promoting collaboration and communication in instrumentation Members of the instrumentation, control, and automation profession discussed how their field will be impacted by Industry 4.0 at the IICA’s Christmas in July event.
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S the sun set behind the Harbour Bridge and the towers of the Sydney CBD began to light up, members of the Institute for Instrumentation, Control and Automation (IICA) gathered at Athol Hall on Bradley’s Head, Mosman. Inside the 150-year-old venue, the wooden beams of the 19th century hall were wrapped in tinsel and garlands, giving the evening a festive vibe. Peter Veron, chairperson of the Sydney Branch of the IICA, reflected on the past year for the Institute’s NSW branch, noting the successes that each tech expo reached. With over 50 exhibitors at the Unanderra expo, 66 in Newcastle and a healthy turnout in Griffith, each expo provided an opportunity for IICA to facilitate the connections between providers of instrumentation controls and customers. The next NSW expo will be held at Sydney’s Rosehill Racecourse, for the first time, on October 30. “We’ve got 66 exhibitors already booked, so we’re looking forward to a really successful event there,” said Veron. 34 SEPTEMBER 2019 Manufacturers’ Monthly
In addition, IICA has organised expeditions to Sydney Water, Origin Energy, and the Australian Nuclear Science and Technology Organisation (ANSTO). Finally, to get members up to speed on the pressing issues confronting the sector, the IICA has led tech evenings covering the Industrial Internet of Things (IIoT) and Industry 4.0. Veron noted that these technologies are just around the corner. “It’s going to hit our industry before we know it. We’re all waiting for it, the digital connectivity and wireless connectivity, and we’re about to get it,” said Veron. With dinner served, Michael Sharpe, national director of industry at the Advanced Manufacturing Growth Sector (AMGC), expanded on these current concerns. Currently, the AMGC has close to 800 members and, similar to other growth centres established by the federal government, looks for ways for Australian manufacturing companies to expand. “If we can accelerate and transform manufacturing, we’ll see Australia break out into the world.
We need more companies to look at the export potential,” said Sharpe, in opening his presentation. Sharpe identified the $220 billion investment by the federal
government in defence, the largest in Australia’s peacetime history, as an opportunity for Australian businesses to be part of significant global supply chains, as government Speaking at the event was Michael Sharpe, national director of industry at the AMGC.
manmonthly.com.au
Instrumentation
The event was held at the historic Athol Hall in Mosman. contracts require local content. Leveraging this investment could allow Australian businesses to not only scale up their operations, but increase their technological complexity, Sharpe highlighted. This creates the opportunity for the adoption of Industry 4.0 technology, the focus of Sharpe’s speech. “The fourth industrial revolution, which is Industry 4.0, is intelligent or digital production, and we’re just riding the crest of that wave now,” said Sharpe. “It’s no longer what you make; it’s how you make it. That comes down to integrated supply chains, investing in technology to boost the business to add more value than ever before.” According to Sharpe, manufacturing has the opportunity to add value at the beginning and end of the production process, in areas where traditionally it has not been as focussed. At the beginning, this is greater investment in research and development via collaborations with universities. “If we can get more Australian manufacturers partnered with our great universities, we can unlock all this potential for Australian manmonthly.com.au
companies to export to the world,” said Sharpe. Although there are language barriers to overcome in the translation of academic jargon and business semantics, Sharpe sees great potential in the collaboration between these two sectors of the economy. “I’ve been taking some of these professors to places like Dubbo, to Wagga, up to the north coast, and out to Western Sydney to talk with manufacturers big and small and to exchange knowledge. You know what, when I get professors on the floor they too learn something new,” said Sharpe. At the other end of the production process is a greater focus on the sales relationship. Holding up his iPhone and addressing its ubiquity in pockets around the room, Sharpe highlighted how a manufacturer, in this case Apple, had created a sales environment through its online and physical stores that encouraged customers to purchase Apple products. In addition, Apple is utilising the intellectual property that it holds in the applications which run on the iPhone as a revenue stream by offering subscriptions to services such as iTunes or Apple Music. Sharpe encouraged attendees to think about whether manufacturers
Peter Veron, chairperson of the Sydney branch of the IICA, highlighted the institute’s work and successes.
other and connect over where their industry was headed. As Veron noted, the work of the AMGC fitted with what he hoped the IICA would provide to its members. “Our industry sees manufacturing shrinking and going offshore, while the AMGC are trying to bring some relevance back to Australian manufacturing, so I think there’s a lot of synergies between what we’re trying to do for manufacturing and what their group
Members of the instrumentation, automation and control profession discussed the future of their industry. were looking at this potential in the same way. With these thoughts in the air, Sharpe’s speech encouraged those in attendance to network with each
is trying to do,” said Veron. More broadly, Veron hoped that through nights such as this and other events, the IICA can continue to be of service to its members,
connecting them with industry and each other, while pursuing professional excellence. Veron noted the tech expos in particular were a successful way of connecting members with potential clients, something that Veron hopes to continue in the future. One area that Veron sees as needing improvement, however, is the standards and education for instrumentation. “The TAFEs have rolled instrumentation into electrical engineering courses, so by default electricians are becoming instrument technicians, but they’re not trained well enough, so we hope to provide training courses to give them that edge to understand the latest in technology and keep up with what they need to know,” said Veron. Ultimately, Veron hopes that the IICA can develop its educational offering to the point where greater collaboration in the industry is possible. “I hope to see a more open platform where people share technologies –– you might have an instrument that competes with someone else’s instrument but the technology is uniform across us. Often the end user has trouble with different brands communicating with each other, so getting together benefits the end customers,” said Veron. Manufacturers’ Monthly SEPTEMBER 2019 35
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Software The KPIs you should track for company success Unleashed Software explains how reporting KPIs can help with making smart, informed decisions for manufacturers.
U
NDERSTANDING the trends and data points that occur in the manufacturing process can lead to gains in efficiencies, supplier products, customer satisfaction, and business profitability. Breaking these aims down into measurable, numerical values is part of defining the key performance indicators (KPIs) that can lead your company to success. Business activities, inputs and outcomes all generate data. When left unchecked, this can result in an overload of data, but by analysing specifically chosen data, businesses can glean insights that will lead to better decision-making. With the data to support a decision, changes to a business’s operating practices can be based on facts and their outcomes can be reliably measured. By measuring and tracking production processes, analysts can spot long-term trends and developments that have occurred in the history of the company and be better prepared to deal with changes as they emerge in the future. Before rushing off to buy a range of sensors and modules, however, understanding how these metrics fit into your business’s broader goal will make the datagathering exercise all the more productive. Whether that is to minimise production costs, increase the quality of the product, or just become more efficient overall, defining your aims ensures data is put to good use. These broader goals must be specific, measurable, actionable, realistic and time-based. This is so that the metrics can drive the analysis of the goal, rather than the other way around. In addition, while an overall goal of a business may be set, breaking the goal down into constituent parts that can be fulfilled by each individual or team within the organisation contributes to the cohesive and streamlined fulfilment of manmonthly.com.au
the targeted achievements. With this in mind, you can set KPIs at all levels of a manufacturing business. The first area in which defining metrics can lead to gains for the business is during the production process. Here, the primary goal will tend to be improving efficiency. During the production process, time can be a valuable indicator of the efficacy of the overall process. Measuring cycle time or time to make changeovers can point towards areas where you may be able to achieve productivity gains. A capacity or cost metric can also lead to insights into the production process. This can be measured by overall production efficiency, broken down into capacity utilisation, the cost of energy required per product, or overall equipment effectiveness, measured by whether the equipment is reaching its potential capacity. The next KPI for production is in the area of safety. This can be measured by the number of health and safety incidents over a period of time, noncompliance events in a set time, or the ratio of planned-toemergency maintenance that has needed to be carried out. Having an understanding of a quantifiable value on each of these areas within a production process allows for the business to define the metric that will inform overall KPIs. The second area within a manufacturing business that should be measured is supplier input. This can be measured in terms of lead time, overdue orders, or the qualitative or quantitative inspection of supplied products. These metrics can be used to inform an analysis of the quality or comparative quality of a supplier. The next area for metrics that go towards company KPIs is in the field of the customer. Meeting KPIs for customers, whether agreed between your business and the customer or
self-determined, can ensure ongoing customer loyalty and satisfaction. This can be quantified in the percentage of products delivered in full and on time, or the customer return rate. Finally, measuring overall KPIs for a manufacturing business ensures that you have an understanding of the general health of the business. Here there are many metrics
that is useful and understandable. Inventory management software, such as Unleashed Software, can track the metrics and then generate reports based on the data. These reports provide a way for manufacturers to visualise the data they have collected while informing the decisions that they may make to grow the business. The business intelligence
Inventory management systems can give you the data you need to measure KPIs. to choose from, ranging from profit, revenue, and cost, to sales volume, and margins. The internal productivity of workers across the company can also be measured, as can the productivity or return on physical assets owned by the company. Other monetary areas include interest, tax, depreciation, and amortisation. With a myriad of potential data points and metrics, you need to a solution that measures and processes data points into something
reporting functionality that Unleashed offers is one part of their complete solution that can be managed from the cloud. Information is then collated on products and stock in the one system. When stock levels are updated, the changes are reflected across the entire enterprise. With intelligent reporting based on quality data, you can ensure that products are of consistently high quality while keeping costs to a minimum. Manufacturers’ Monthly SEPTEMBER 2019 37
BOC South Pacific, supporting women in industry
Safety at BOC is one of the founding principles of our business and inspires us to make the right decisions, take the appropriate measures and behave in a responsible manner, with a goal of zero incidents globally. BOC supplies compressed and bulk gases, chemicals and equipment throughout the South Pacific and with our wide distribution network, we are here to support your business.
boc.com.au | 131 262 BOC is a trading name of BOC Limited, a member of the Linde Group. Š BOC Limited 2019 ABN 95 000 029 729 Reproduction without permission is strictly prohibited. Details given in this document are believed to be correct at the time of printing. Whilst proper care has been taken in the preparation, no liability for injury or damage resulting from its improper use can be accepted.
BOC sponsors the safety advocacy award for excellence, which highlights individuals working actively to improve safety in their industry.
MP19-0217 | LB 0619
BOC South Pacific is once again a proud sponsor of the Women in Industry Awards and have been since it began.
Lubricants Ensuring industry, racing, and the community run smoothly At their Open Day, the lubricantion specialist, CRC, demonstrated the importance of giving back to their community.
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N a warm and sunny day that put any sense of winter in Sydney to shame, CRC Industries employees, customers, and partners gathered at CRC’s Australian headquarters in Castle Hill for its Open Day. Also present at the event were representatives of the initiatives that CRC sponsors, the Erebus Motorsport/Penrite Racing Team and the Australian Men’s Shed Association. CRC Industries is a lubricant, anticorrosion, and chemical maintenance manufacturer, and the local Australian branch is a subsidiary of its US parent company. Not only was the Open Day a chance to showcase CRC’s sponsorship initiatives, it also marked an important milestone for the connection between the local Australian affiliate and the US company. This year, CRC celebrated 50 years of manufacturing in Australia. As Simon Hatton, national marketing manager of CRC Industries, highlighted, reaching this marker is significant for the strength of Australian manufacturing. “Fifty years means 50 years of excellence, 50 years of meeting the market requirements, 50 years of manufacturing in Australia,” said Hatton. “50 years working with the Australian industry, and manufacturing an Australian product with Australian people.” The company’s commitment to its local market was demonstrated by CRC’s sponsorship of the Erebus Motorsport/Penrite Racing Team. Coming off the back of a first place at Bathurst in 2017 and poll position at Bathurst in 2018, the young team, founded only in 2013, was there to connect with those whose sponsorship made the team’s success possible. In addition to the people from manmonthly.com.au
CRC’s support for local industry and initiatives was a focus of the day.
Erebus Motorsport/Penrite Racing Team, representatives of the Hi-Tec Drifting squad were also present. The day’s events involved the unveiling of a new vehicle for the team, that with the support of CRC’s Kitten Ultra brand of cleaners, polishers, and protectors, is growing the profile of drifting as a motorsport in Australia. As Hatton highlighted, however, for customers and clients, seeing the presence of the teams at CRC’s headquarters demonstrated the quality of their product. “We’re trying to let people know that the products that they’re buying are used in a real-world example. They can use CRC products at home, on their car, or they can use it in racing. They can use it in their industry, they can use it anywhere,” said Hatton. Not only were the cars and their drivers available to the public, there was also a simulation of getting inside the vehicle and driving an Erebus Motorsport car around the track. With attendees ranking their
times against each other, there was a spirit of friendly competition at the event. At the same time, just as CRC produces oils and lubricants to take care of vehicles, their support of the Australian Men’s Shed Association, representatives of which were at the Open Day, highlighted the importance of taking care of one’s body as well. In a moment of symbiosis, the current campaign from the Australian Men’s Shed Association, entitled “Spanner in the Works?” encourages men to get a yearly check-up, just as they would service their vehicle regularly. With advice tailored for men at all ages, the project runs under the motto, “our most valuable piece of machinery is our own health and wellbeing.” On hand at CRC were medical professionals who gave attendees their health checks, ensuring all were running smoothly. While lighthearted at the event itself, as David
Helmers, executive officer of the Association, noted, there is a serious reason to get checked. “Men a lot of the time don’t go and see the doctor until it’s way too late so the idea is that people can relate that you get your car tuned up once a year, you get your body tuned up once a year,” said Helmers. For CRC, the priority is to ensure that their products are a positive contribution to the community. “CRC looks to give back because at the end of the day, we believe that as an organisation, we’ve got to pay it forward.” With the crisp smell of a goldcoin-donation sausage sizzle, raising funds for the Men’s Shed Association, carried across the CRC loading dock, the company’s ethos was evident. “We’re a global company but we’re still very much focussed on the Australian market,” said Hatton. “Without that, CRC wouldn’t be what we are today, and working together look what we’ve achieved.” Manufacturers’ Monthly SEPTEMBER 2019 39
Women in Industry Creating a culture of safety
Winner Profile: Safety Advocacy Award
Recognising that safety is more than ticking boxes or checking things off a list, this year’s Safety Advocacy Award went to an individual who is shifting sector-wide approaches to safety.
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ROWING up, Kristen Sandford was inculcated with an understanding of safety. Observing her father, who worked in safety management, a lifelong passion for safety began to form. “Seeing the way that he loved what he did – dealing with people, ensuring the safety of people – really got me wanting to be involved in that industry,” said Sandford. Recently winning the Safety Advocacy Award, sponsored by BOC, at the Women in Industry Awards 2019, Sandford has emerged from this foundation to make her own mark on safety. After finishing high school, Sandford knew that safety was a career that she wanted to pursue. Moving from Queensland, Sandford began her studies in Western Australia. While completing an advanced diploma in occupational health and safety training and assessment, Sandford was focussed on applying what she learnt in the workplace. “Where safety can go and how it actually works in the industry was for me the most exciting part of the diploma, and it kept me thinking, ‘I’m going to study this and I’m
Responding to the changing nature of safety requires a flexible approach.
40 SEPTEMBER 2019 Manufacturers’ Monthly
I work alongside a paid paramedic, so that’s built me as well to be a different safety person in itself. You get in the ambulance, you get called to a serious car accident, and you have to switch on and use those incident investigation skills to deal with what comes to hand. It’s the same with safety at work – it’s not the same job every day.
Kristen Sandford aims to instil a new attitude to safety. going to go and put this all together in a workplace somewhere,’” recalled Sandford. Immediately after completing her studies, Sandford began to work on a project in the mining industry in WA. Here, Sandford found what she had been preparing for. “I was able to work alongside the site safety person that was there and get my hands into the safety side of
things in the mining industry,” said Sandford. After completing that 18-month project, Sandford shifted to working for a building materials supplier before moving back to Queensland and into her current position as safety manager at CSR. In this role, Sandford has been able to implement her approach to safety. Sandford starts from the point that safety is about “ensuring that our people come to work in a safe state and that they leave it in exactly that same state as well”. Implementing this philosophy means that staff at CSR want to be at work, and want to be safe at work. This positive approach to safety is a shift from traditional safety practices which either focus on rules or set up exclusions. Instead, Sandford plays a slightly different role to the stereotypical safety officer. “I’m not coming in to be a police officer, I’m trying to get them onside. I’m not here to tell them what to do or how to do their job, I’m here to help them and work with them all to ensure that they all are being safe,” said Sandford. Working with the staff at CSR, where Sandford works out of the company’s Coopers Plains site, south
of Brisbane, Sandford is empowering employees across the business to take responsibility for their own safety, particularly in the area of hazard identification. “I train them to ask, ‘How do I identify hazards? What hazards are there?’ and get them to be able to put their hand up and report those hazards through to us. Then, instead of just saying ‘That’s great, now we’re going to fix it,’ we throw it back at them and say, ‘Well how do you think we can fix this?’” This approach to safety not only ensures that employees are safe at work, but that they bring a safe attitude with them when they show up to work. This, in turn, contributes to a culture of safety across the workforce. “Even getting people to say to us, ‘I had an injury,’ whether it’s work related or non-work related, is important. We tie together work and non-work relationships as well by saying, ‘If you hurt yourself at work we’re going to fix you, and if you hurt yourself at home we’re going to help you,’” said Sandford. “There’s no difference for us here – we’re happy to put you on restricted duties to help you out because you’ve had an accident at home.” When Sandford is dealing with manmonthly.com.au
Women in Industry day to day issues of safety, such as forklift and pedestrian interactions and manual handling, she is looking towards the application of new technologies such as automated forklifts so that the chance of a traffic management incident or manual handling injury is averted. In addition, applying safety to a person’s whole body, including their psychological safety, leads Sandford to take on a HR role locally, as HR operations are managed interstate at CSR’s head office. “I’m happy to put my hand up when there is a personnel issue between people or when someone is going through some mental health issues. I utilise the experience I have to support them and help them through that.” Receiving the Safety Advocacy Award at the Women in Industry Awards confirmed the value of this approach to Sandford, and showed that her efforts were being recognised. “People tell you you’re doing a good job, but to actually, firstly, be nominated, secondly, to become a finalist and then to win the award was such an achievement. I was so proud of myself and very thankful of CSR for even nominating me in the first place,” said Sandford. “It made me realise that I am definitely doing a good job and that I’ve got the support of everyone around me in safety.” Outside of work hours, Sandford has donated her time for the past nine years to volunteer for St John Ambulance Australia, which gives her a further insight into how safety can be implemented, as well as the needs of emergency service workers when an incident does occur. “I work alongside a paid paramedic, so that’s built me as well to be a different safety person in itself. You get in the ambulance, you get called to a serious car accident, and you have to switch on and use those incident investigation skills to deal with what comes to hand. It’s the same with safety at work – it’s not the same job every day,” said Sandford. Ultimately, the way in which Sandford approaches safety is that it’s not just a job, it’s a vocation. “It’s part of life and what I love.” manmonthly.com.au
Supporting those who get us home safe
“We have some great female
keep safety front of mind, ongoing
engineers working for us and also
coaching and feedback is vital.
Making safety part of the Women in
some other amazing women across our
One of the programs that BOC has
Industry awards is partly the result of
business. Inclusion is one of our key
implemented is named “fresh eyes”,
the award’s sponsor, gas supplier BOC.
values and sponsoring the Women in
which Blume explained.
Recognising that a culture of safety is
Industry Awards gets us out as a great
“If you go onto a site, what you do is
of benefit to the industry as a whole,
place to work for,” said Blume.
you walk around the site and you have
BOC has sponsored the award for the
With inclusion as a value, safety,
a look at everything because you ask
past three years. In addition, BOC
however, is fundamental at BOC.
new questions with fresh eyes. You
has acknowledged the importance of
“Safety is our number one priority,”
talk to the people you’re meeting with
identifying the value of diversity in
said Blume. “It’s really important to
and ask questions about why things
the workforce, having sponsored the
us that our people, our customers,
are in certain ways because often
Women in Industry Awards since it
and the community, go home safely,
what happens when you’re working
began.
so that’s the reason why we chose
on an industrial site is you see the
The reason for this support starts off
to sponsor the safety award in
obvious but you don’t see what
close to home. According to Michelle
particular.”
somebody coming in sees, and asking
Blume, head of human resources,
At its own facilities, BOC implements
questions will trigger that.”
South Pacific, BOC values a diverse
a culture of safety across the board,
For Blume, it was fitting that
and inclusive workforce that reflects
much like the one that Kristen
Sandford won this year’s award. Not
the broader community.
Sandford, winner of the 2019 Safety
only for the programs and initiatives
“We want a diverse workforce, and if
Advocacy Award, implemented at her
that she implemented, but about how
you look at women in particular they
employer, CSR.
she was working to change the culture
are 50 per cent of the community, so
“One of the things that we’ve known
around safety in her workplace and
you want them to be 50 per cent of
at BOC for a while is that safety is
beyond.
the workforce,” said Blume.
about behaviours. We spend a lot of
“When I went back through
This aim reflects the drive of BOC’s
time upskilling people on how to look
Sandford’s nomination, it was about
workplace to attract and retain
out for hazards, talk to people when
doing the walk arounds with people
female talent in an industry that
they go on site, and recognise good
and identifying the hazards and
has traditionally not been front of
and poor safety behaviours.”
very much shifting that behavioural
mind for women, and goes towards its
While BOC has trained and coached
culture, which we think is important,”
valuing of inclusion.
all its staff to fulfil these goals, to
said Blume.
Michelle Blume, head of HR, BOC South Pacific with Geoff Holgate, branch manager, undertaking a fresh eyes inspection at Wagga Wagga Gas & Gear.
Manufacturers’ Monthly SEPTEMBER 2019 41
NOVEMBER 2019 – ERP SOFTWARE & INDUSTRIAL FANS Data is a plant manager’s most important tool in ensuring an efficient operation. But with so much data available, how are modern leaders to make sense of it all?
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In November 2019 we will look at the enterprise resource planning (ERP) software offerings, to highlight what tools are available to support improving uptime in manufacturing operations. Also this month, we will be looking at Industrial Fans. When it comes time for an operation to purchase, or upgrade, their industrial fans, making a decision based on price can lead to dire consequences. We speak with leading distributors and manufacturers of industrial fans about what buyers need to consider when making their next purchase. In every edition of Manufacturers’ Monthly, we’re proud to work with our commercial partners on content that helps connect you with your future customers.
Booking deadline: 02 October 2019
To book contact DANILO CORTUCCI now danilo.cortucci@primecreative.com.au | 0434 419 663
Automation AGVs: Flexible solutions to fit into any site Finding an automation system that allows for growth and change can enable long-term savings and production increases. Manufacturers’ Monthly reports.
F
OR companies seeking to reap the benefits of an automated production lines one stumbling block has been the inflexibility of a system once installed. Whether that is in the path that the process follows or the fixed site of key components, once the investment has been made and the technology installed, it has been hard to adapt to changes in throughput or alterations to established workflows. Dematic, a global provider of intelligent logistics and material handling solutions, known for its automated storage and retrieval systems (AS/RS), has seen this issue of the inflexibility of automating facing those companies that it supplies. “The big challenge in recent years for companies that are looking into automation for the productivity and the capacity gains is that certain automation products like pallet conveyors were seen as limiting flexibility,” said Tony Raggio, general manager for Dematic’s mobile automation division in Australia and New Zealand. With the development of autonomous robotic systems in 1980s, however, Dematic globally saw a way around the inflexibility of costly automated production facilities. The solution they developed was utilising the technology of automated guided vehicles (AGVs) for transport in production and warehousing facilities. “You could set up paths for the AGVs to travel from one pick up point to another drop off point, or within storage applications doing put away or retrieval. But if your needs change, if you have different pick up or drop off points, our customers can reorganise the paths the AGVs travel,” said Raggio. Seeking to further develop this technology, as Dematic had been providing AGVs around the world for many years, particularly in the food and beverage and other manufacturing industries, Dematic acquired Australian AGV manufacturer manmonthly.com.au
NDC, who they have partnered with previously on a number of projects. “There came a point where we saw that AGV’s are a critical part of our portfolio going forward in terms of providing flexibility and productivity gains for transport applications in warehouses as well as production lines,” said Raggio. “Dematic made a strategic decision to acquire NDC to complement our portfolio of AS/RSs and palletising lines and to also look at where else we can extend AGVs and applications within other industries.” While AGVs were already being used to move packaged finished goods on pallets from one end of a production line and deposit it at a dispatch area, having brought NDC’s technology in house, Dematic could look to other applications such as high manual pallet racks – up to 9.5 metres high – and storing and retrieving materials from double-deep storage. Today, Dematic’s range of AGV solutions have broadened to include other applications that AGVs haven’t traditionally been able to address, including in harsh environments such as freezer systems and outdoors. With these possibilities, Dematic has been able to install AGVs in non-logistics businesses, such as manufacturers of durable products, aluminium smelters and steel fabrication workshops. As in production and warehousing facilities, the AGVs have been installed to work alongside the existing human workforce. To do so, Dematic utilise safety systems which enable productive collaboration. “You can manage the speed and avoid collisions because they do have best practice collision avoidance sensors for both for static infrastructure as well as moving components like other AGVs or forklift trucks as well as of course human operators,” said Raggio. Dematic’s AGVs have three obstruction sensors installed on them as standard, with additional
scanners installed if required. If an object enters the scanner’s horizontal sensing plane, the vehicle will slow down. Or, if an object appears in the closer protection field, the safety relay triggers an emergency stop until the object is removed. In other instances, Raggio pointed out, AGVs have advantages above and beyond a manual material handling process. “AGVs can work 24/7, they don’t take breaks, and they don’t need to take sick leave.” With these safety systems installed, AGVs can provide a safe and secure option for assistance in a manual warehouse or production facility. “Where previously a company was using forklift trucks and they’re looking to automate to reduce costs, increase reliability, and increase safety, you can readily put in AGVs into those traditional manual warehouse applications,” said Raggio. In such cases, AGVs provide a flexible solution where a full-scale automation of an existing plant is not possible or being considered. “If a company is looking for a green field site then there is the option for AS/RS. But when you’re looking to refit and optimise a manual warehouse operation, then that’s more an application for AGVs.” After purchasing NDC, Dematic consolidated the AGV production with its Australian manufacturing facility. This makes Dematic distinct from its competitors, highlighted Raggio. “The biggest differentiator of Dematic in Australia is that we assemble AGVs locally, so we have a strong support base in terms of commissioning, in terms of software, and then critically the ongoing support. We have a large local base of technical engineers that can provide ongoing maintenance as well as service capabilities,” said Raggio. These differentials are apparent from when Dematic is first brought into to provide an automation solution.
“We work with the customer to understand their business, network requirements, constraints, and growth projections. Then, we provide them with a solution design and work through that with the customer.” The key attraction of AGVs in the first place is their flexibility, something that Dematic has in mind from the initial consultation. Hence, Dematic and the customer are able to
A Dematic AGV accessing the top level of pallet racking. provide and plan for future changes in their AGVs’ application. “Once a system is live, Dematic offers the full suite of service and support capabilities depending on the customer’s requirements. If there’s any issue with the customer’s AGVs, we have technicians all across Australia and New Zealand. This can include residential technicians on site, ongoing maintenance, and service support, and any upgrade services as well, as required,” said Raggio. Manufacturers’ Monthly SEPTEMBER 2019 43
Workplace Meet Australia’s seven worst workplace bullies Workplace bullying is unfortunately too common. Ai Group explains how to identify the signs and take action.
“
I
WOULD end most days in tears – I felt utterly alone and like I was losing my mind. In the end I was too ill to work. I’m amazed I lasted as long as I did.” These are the words of a young woman who, for more than two years, had been happily working in her dream job – until she became the victim of a textbook case of systematic workplace bullying. In the space of a single fraught project, the dynamic between her and a previously professional supervisor shifted. “I was excluded from things. Responsibilities were taken from me and given to more favoured staff. I was subjected to constant cold and unfriendly behaviour – ostracism and bitchiness were practised and actively encouraged in others. And it descended further into incidents of spying and gossip.” The victim in this case ultimately resorted to engineering her own exit from the business with some belated assistance from her HR department; her bully, ever defiant and without remorse, remains there to this day. And it’s not an isolated incident. According to research by the University of South Australia, Australia is home to some of the worst bullies in the world. Compared with 31 European countries, we ranked sixth highest. If you find this image of the Australian workplace hard to believe, belying as it does our reputation for a “fair go”, consider the following list of Australia’s seven worst workplace bullies – our hall of shame:
7. Hit with a plank of wood A labourer at a Sunbury, Victoria building company was subjected to physical violence and intimidation that caused public outcry when first reported by The Age in 2010. He was hit around the head with 44 SEPTEMBER 2019 Manufacturers’ Monthly
Bullying in the workplace can take many forms.
According to research by the University of South Australia, Australia is home to some of the worst bullies in the world. Compared with 31 European countries, we ranked sixth highest. a plank of wood while working, to the hilarity of his colleagues, and suffered a broken thumb and wrist in a machine after appealing that it was dangerous. The supervisor regularly fired a nail gun at staff and workers were refused safety equipment unless they paid for it themselves – at inflated prices.
6. A mouse down the back of his shirt An apprentice spent two years from the age of 16 at the mercy of a Geelong builder who not only encouraged other employees to victimise the teenager, but actively
participated in incidents including putting a live mouse down the back of his shirt, spitting on him and squirting liquid nails in his hair. The builder was convicted under the Victorian OH&S Act and fined $12,500.
5. Likely to cause significant, recognisable psychiatric injury Over a period of five years, a contracted security guard was subjected to extensive bullying at the hands of his manager. Physical assault and repeated threats such as “I will do you”, sexual abuse,
indecent exposure and racial vilification led to the manager’s conduct being described as “so brutal, demeaning and unrelenting that it was reasonably foreseeable that it would be likely to cause significant, recognisable psychiatric injury.” The NSW Supreme Court awarded a total of almost $2 million in damages.
4. Followed home Over a two-year period, a female labourer was shown pornographic material, slapped on the bottom, grabbed from behind, had a sex act simulated on her, and told by a male colleague that he would follow her home. When she complained to the foreman (who had been a participant in the bullying), he responded by laughing. The Supreme Court of Victoria accepted she was unlikely to ever work again as a result of the severe psychiatric condition it left her with, imposing $1.36m in damages. manmonthly.com.au
Workplace 3. Burnt by a welder while a colleague sprayed accelerant The parents of a teenage apprentice awoke one night to find their son crying, distressed because he was still alive after a failed suicide attempt. Extreme episodes of bullying had included being burnt by a welder while a colleague sprayed accelerant. A chart was displayed in the workplace recording mistakes the apprentice made – with reference to a threshold that, once reached, would prompt an assault. A second suicide attempt, just after his 17th birthday, was tragically successful.
2. Took his own life after the relentless bullying A supermarket employee subjected three of his work colleagues to verbal abuse, stalking and intimidation so sustained that it moved his female shift-manager to fall pregnant, just so she could get away. Sadly, the outcome was far worse for another new parent who took his own life after relentless bullying. While charges could not be levelled in that case, in the absence of the deceased man’s evidence, the perpetrator was charged with bullying the other two colleagues and sentenced to six months in prison under Brodie’s Law.
Addressing unhealthy behaviours in the workplace ensures the workplace is safe for all.
1. Rat poison left in her pay envelope Brodie Panlock was a 19-year-old café worker who suffered bullying six days a week for more than a year. She was spat upon and derided for her appearance, held down by her workmates, had fish oil poured in her bag, was teased about a failed suicide attempt, and had rat poison
left in her pay envelope, with encouragement to succeed in her next suicide attempt. Brodie eventually did take her own life, leading to the prosecution of her employer and the three responsible employees, who received fines totalling $335,000. Her enduring legacy is Victoria’s anti-bullying legislation, known
The responsibility for employee safety sits with the employer.
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as Brodie’s Law – making bullying punishable by up to 10 years in prison. All employees have the right to come to work and be safe. The responsibility for employee safety sits with you as an employer. Are you equipped to take all steps to manage any risks to employee mental health, including taking swift and effective action to deal with bullying behaviour? Are you confident you and your leadership team know how to identify, address and put a stop to bullying behaviour in your workplace? Now is the time to ensure you and your team are equipped to identify and address these behaviours in your workplace and ensure that your workplace is a safe and healthy workplace for all. Ai Group can help with our range of programs – public, onsite or online – designed to ensure that managers, supervisors and employees all understand their role in promoting a respectful workplace culture, achieving legal compliance and undertaking effective complaint handling. Contact Ai Group for more information, call (02) 4925 8320. Manufacturers’ Monthly SEPTEMBER 2019 45
What’sNew A nickel-based formulation for all metals CRC Nickel Anti-Seize and Lubricating Compound is a nickel-based formulation for all metals, especially stainless steel. It is free of copper, lead, sulphides, and chlorides. This high temperature lubricant protects metal-to-metal applications from seizing and galling caused by high temperatures, heavy loads, vibration, chemicals, and corrosion. It is safe for use with most chemicals that are unstable with copper. Nickel Anti-Seize has high temperature capabilities and excellent chemical resistance. Regular use of Nickel Anti-Seize will increase performance and prolong equipment life. Features and benefits: • For all metals, especially stainless steel. • Copper-free formulation. For use where a clean, chemically inert and stable lubricant is required • High temperature resistance. Protects parts up to 1315 °C • Electrically conductive. Does not insulate and interrupt current flow. • Good choice for use on soft metal applications. Does not compromise integrity of soft metals. • Safe for use on both ferrous and non-ferrous metals. • Will not harden. Heat aging won’t affect lubricity of product. • Resistant to mild detergents and alkaline wash. Protects against rust and corrosion. • Facilitates fast and easy disassembly. Saves time in taking apart components. • Minimal VOC content. Contains negligible amounts of volatile organic compounds that cause ground smog. • Contains no known ozone depleting chemicals. Offers effective performance
while complying with the EPA regulations on the use of ozone-depleting chemicals. • Aerosol includes permastraw dual-action spray system – one piece-actuator with two-way spray that ensures that straw stays in place. Uses: • To lubricate fittings, bushings, flanges, headers, nuts, screws, studs, threaded surfaces, pipes, plugs, and manifolds to prevent seizing and galling of surfaces. • Recommended to lubricate metal-to-metal applications where a clean, chemically inert, copper-free formulation is necessary, especially when resistance to corrosive acidic and caustic solutions is required. Will not poison catalyst beds, reaction chambers, or special alloy fittings. Company: CRC Industries Phone: 1800 224 227 Web: crcindustries.com.au
Intelligence in non-networked machines Like the recently introduced MGB2 Modular, the new MGB2 Classic is an enhancement of the globally successful Multifunctional Gate Box (MGB) from Euchner. Unlike the Modularvariant, however, the Classic version does not communicate using a bus system. It is instead connected directly to the respective control system, making it the ideal choice for non-networked machines that are wired in parallel. The system features two output signal switching device (OSSD) outputs, continuously provides diagnostic information via an LED indicator, and can be connected in series with up to 10 devices. The modular design of the MGB2 Classic offers maximum flexibility to machine manufacturers, integrators, and users. All requirements for door locking systems can be met through combination with numerous freely selectable submodules. Submodules can include pushbuttons, selector switches, key-operated rotary switches, or emergency stop buttons. This simplifies warehousing and allows subsequent machine modifications or expansions to be implemented efficiently. A DIP switch additionally contributes to the versatility offered by the MGB2 Classic. Depending on the switch position, the safety outputs are activated as soon as the door is closed but not locked, or only when the door is safely locked. Greater variability is provided by the locking module, which can be fastened on doors hinged on the left or right and on sliding doors. In addition to the robust housing, the extensive diagnostic functions and the submodules’ hot-plugging capability, attention is also paid to the repair friendliness of the components when developing the new member in the
46 SEPTEMBER 2019 Manufacturers’ Monthly
MGB2 family. For example, all screws are captive and can be tightened or loosened with just one tool. Furthermore, coded terminals or an RC18 plug connector on the connection modules ensure rapid, trouble-free replacement. This shortens downtimes. Company: Treotham Automation Pty Ltd Phone: 1300 65 75 64 Web: www.treotham.com.au
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A CMMS to manage all your critical assets An unmaintained piece of equipment is a dangerous one. Allowing staff to continue to operate such equipment is reckless and can lead to serious consequences, not to mention prolonged downtime. In addition, safety in the workplace is of paramount importance and maintaining a tool that can ensure the highest levels of operational health and safety (OH&S) within the workplace will not only lead to a safe working environment but also a productive one. A Computerised Maintenance Management System (CMMS) allows for the early identification of operating issues, as well as keeping a sound record of your equipment’s maintenance or lack thereof. This allows anyone to identify any trends that could lead to the unsafe operation of their equipment or put a cap on any downtime that may occur due to overuse and under maintenance. MEX offers a number of options to ensure customers are compliant with current state and federal OH&S legislation. The MEX CMMS provides a framework to identify, report, and control any risks, hazards, and unsafe conditions arising during our customers’ operational and maintenance activities. MEX also provides the ability to record what assets a company owns and manages, any maintenance work that needs to be performed or has been completed on an asset, and all the information on manpower usage, spare parts, costs, and asset failures. This makes the MEX CMMS more than just a mechanism to capture data, asset details, and maintenance strategies, but a promoter of safe maintenance. Used correctly, MEX can help anyone make their workplace safer, their equipment safe to operate and their staff free from harm. Should anything
happen, they will be backed up with a comprehensive history of work performed and safety procedures to follow. Company: MEX Phone: (07) 3392 4777 Web: www.mex.com.au
Radar sensor for continuous level measurement of water and wastewater The VEGAPULS WL S 61 is the ideal sensor for all typical applications in water and wastewater. It is particularly suitable for level measurement in the water processing, in pump stations and overflow basins. The flood-proof IP 68 housing of VEGAPULS WL S 61 ensures a maintenance-free continuous operation. It has integrated Bluetooth for wireless communication via smartphone, tablet or PC. Benefits include: • Exact measuring results independent of product, process, and ambient conditions. • High plant availability, because the product is wear and maintenance-free. • Maintenance-free operation through the non-contact measuring principle. • Simple sensor adjustment via smartphone or tablet. The sensor emits short microwave pulses through the antenna. The emitted signal is reflected by the medium and received as an echo by the antenna. The time between the emitted and received signal is proportional to the distance and depends from the filling height. The determined filling height is converted into a respective output signal and output as measured value. The wetted parts of the instrument are made of Valox PBT or PP. The connection cable is PUR insulated. The housing is optimised for applications in the waste water industry and manufactured of Valox PBT. Due to the encapsulated cable gland, protection rating IP 68 (2 bar) is achieved.
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Company: Vega Phone: (02) 9542 6662 Web: www.vega.com
Manufacturers’ Monthly SEPTEMBER 2019 47
What’sNew Flexible frame base modular enclosures for electrical and infrastructure solutions In many cases, a modular frame-based enclosure system can offer more flexibility than welded enclosures. Advantages of modularity include, flexibility in design, ease of integration, configuration and reconfiguration, and variable sizes and footprints. Erntec’s modular frame system allows for heavy-duty frames to be constructed in 50mm steps in all directions (depth, width, and height). The system can be used as an open frame rack or fully equipped cabinet. The frame itself is made from rolled formed galvanised steel profiles ensuring optimal corrosion protection even at the cut edges. Press-in corner connectors made from die-cast aluminium ensure a stable connection in all three axes. A gusset is then fitted to each corner and screwed to the frame profiles to provide the mechanical connection between all parts and to provide accurate dimension settings. Self-threading screws allow for simple and fast assembly and dismantling of struts and brackets. The system includes features such as: • Conceivable frame sizes can be from 250mm3 to 6,000mm3. • Excellent electrically conductive connection between parts. Corner block construction ensures electrical conduction between the frame components. • Protection class IP40 to IP54 achievable. • Standard components available for EMI/RFI shielding. • Nominal Static load capacity of 10,000N. Erntec has
designed and tested enclosures using this system up to 15,000N capacity. Erntec can add design and fabrication capabilities to the system to offer a fully integrated solution with a single part number ready for shipping. This guarantees lower total cost ownership and more focus on core responsibility of electrical fit-out and installation. Company: Erntec Phone: (03) 9756 4000 Web: www.erntec.net
A computer system designed to withstand pressure The RACKMUX 4K KVM drawer with built-in 4K HDMI USB KVM switch combines a rackmount 4Kx2K LCD monitor, keyboard, touchpad mouse, and a 4K HDMI USB KVM switch in a space-saving 1RU industrial strength drawer. Each RACKMUX-4K17-N-xHD4K consists of a compact, heavy-duty tactile keyboard with 17-key numeric keypad, a three-button touchpad mouse, and a forward-folding 17.3inch TFT/LCD monitor that supports resolutions to Ultra-HD 4Kx2K 3840x2160 at 30Hz. The LCD screen automatically shuts off when in the closed position. Torque-friction hinges prevent the monitor from wobbling, springing or slamming shut. The KVM drawer features an integrated 4-, 8-, or 16-port 4K HDMI USB KVM Switch, which allows a user to control up to sixteen ultra-HD 4Kx2K 30Hz USB computers. Dedicated internal microprocessors always emulate keyboard and mouse presence to each attached CPU so all computers boot error-free. Constructed with rugged steel and a durable powder coat finish, the rackmount drawer is designed to be a one-person installation job. It is adjustable to various rack depths from 24 inches (610mm) deep to 40 inches (1,016mm) deep. The drawer locks into place when open to prevent it from sliding in and out of the rack. Company: Interworld Electronics Phone: (03) 9593 7555 Web: www.ieci.com.au
48 SEPTEMBER 2019 Manufacturers’ Monthly
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An AI hardware ready system for deep learning ICP Australia has introduced iEi Integration’s New FLEX-BX200 AI ready box and panel PC solution. The FLEX-BX200 is an AI hardware ready system suitable for deep learning inference computing to help users get faster, deeper insights into their customers and business. FLEX-BX200 supports graphics cards, Intel FPGA acceleration cards, Intel VPU acceleration cards, and provides additional computational power plus end-to-end solutions to run tasks more efficiently. With the Nvidia TensorRT, QNAP QuAI, and Intel OpenVINO AI development toolkit, it can help users deploy solutions faster. This system also doubles as a modern ultra-fast modular panel PC; the system supports several different monitor configurations from 15 inch all the way up to 23.8 inch monitors. With modular design it allows for systems to be quickly swapped out and changed if a user decides more computing power is needed. This series offers four 2.5 inch HDD bays with high speed SATA 6 GB/s interface that can expand storage capabilities and enable fast data transfers. The system has built-in high-performance hardware for RAID protection to back-up media and critical information. Users can configure the RAID 0/1/5/10 from the BIOS menu to increase performance and provide automatic protection against data loss from drive failure. The FLEX series can also support Thunderbolt 3 by way of the IEI Thunderbolt 3 card, the TB3-40GDP-R10, to support dual Thunderbolt 3
ports for connecting displays and USB devices and provide more speed. Key features: • 2U AI modular PC with 8th generation LGA 1151 Intel Core i7/i5/i3 and Pentium processor • 4x hot-swappable and accessible HDD drive bays, supports RAID 0/1/5/10 • 2x PCIe 3.0 by 4 and 2x PCIe 3.0 by 8 slots • Dual M.2 2280 PCIe Gen 3.0 x4 NVMe SSD support • QTS-gateway support • Modular LCD panel kit design Company: ICP Electronics Australia Phone: (02) 9457 6011 Web: www.icp-australia.com.au
Strong yet ultra-light system with integrated carry handle, capable of lifting up to 600kg This lightweight portable davit crane, made from high-strength aluminium, is a rapidly deployable personnel crane system. The crane is rated 150kg for personnel with a radius adjustment from 1200mm to 1500mm and weighs 23.5kg. Set up multiple crane mounting positions around the job site and you only need the one crane. Modification options include mounts and height extension sockets. Transporting the crane is easy using integrated carry handle, or heavy-duty carry bag. By removing all personnel devices, the crane can quickly and easily be set up for material load lifting of up to 500kg. The personnel winch is the primary winch, designed for routine raising or lowering of one person or materials weighing up to 150kg. In the event of a fall, the Fall Arrest Device with Recovery acts as the secondary back up. The personnel winch incorporates an anti-run braking mechanism, so if the winding arm is realised during lifting, the mechanism automatically locks, holding the person steady until the handle is rotated again by the operator. The Fall Arrest Device with Recovery has 18m of Dyneema fibre rope with swivel load indicator hook. In the event of a fall, the rewind/rescue mechanism can be engaged to raise or lower a fallen worker. The load is held by an internal brake preventing it falling further should the operative release the handle. The Fall Arrest Device is not intended to be used as a continuous winch, only as a recovery winch. The crane has a gear ratio 1:8.9 for easy personnel lifting, 50mm retrieval per rotation, and 20m of galvanised steel cable with auto-lock karabiner. Maximum arresting force <6.0kN Minimum breaking load 27kN User Weight 136kg Max.
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Features: • 500kg WLL (crane). • 150kg WLL (personnel winch) c/w 20m wire rope and hook. • Fall Arrest Block with Recovery (18m fibre rope and hook). • 1200mm-1500mm radius adjustment (when under load). • Quick-and-easy rapid assembly, no tools needed. • 360-degree rotation under full load with fingertip control. • Fully assembled weight from just 23.5kg (excluding winch). • Crane is suitable for use in ATEX Zone 2 explosive atmospheres. • Corrosion-resistant, clean anodised finish for increased wear resistance. • Lightweight and portable with integrated carry handle and heavy-duty carry bag. Company: Prolift Solutions Phone: (07) 5579 8889 Web: prolift.com.au
Manufacturers’ Monthly SEPTEMBER 2019 49
The Last Word Growing skills gap presents need for urgent reform An overhaul of skills training is needed to ensure Australia remains competitive. Innes Willox explains.
Ai Group’s Innes Willox.
W
ITH the global economy in choppy waters and Australia falling down the world’s performance tables, now, more than ever, governments need to work with industry to secure a long-term prosperous future for us all. It is Ai Group’s view that the first step has to be a ground-up rebuild of our vocational education and training (VET) system. This must be a national priority. The national training system has an incredibly important job before it. Our economy and our communities are undergoing significant transformations, triggered by digital disruption, structural adjustment, and demographic shifts. This has contributed to a dynamic, shifting, and accelerating requirement for skills and employment. However, the skill requirements for the labour market of the future are not the same as those of today. It is our view that the VET system is in a less than optimal state to deliver on this national imperative. The training system has endured a number of problematic years. The VET FEE-HELP debacle inflicted reputational damage from which the system has not yet fully emerged. From an employer and individual perspective, our training system is further bedevilled by inconsistency 50 SEPTEMBER 2019 Manufacturers’ Monthly
in its multiple funding regimes, declining levels of funding, and varying qualification arrangements. Disappointing apprenticeship commencement and completion rates further add to the complex and confusing situation. Industry leadership has been eroded and the pivotal alignment of public expenditure to economic imperative and productivity improvements has been severely diluted. Confidence needs to be restored to the VET system. Recent research by Ai Group reveals the growing intensity of skill shortages and skill gaps. Our most recent Workforce Development Needs (2018) survey highlights that 75 per cent of employers experiencing difficulty in recruiting suitably qualified or skilled people into vacancies. The occupations most frequently reported in shortage were from the “technicians” and “trades workers” occupational group, followed by “professionals”, all in STEM fields. Employers listing occupations experiencing skills shortages for the first time included those with skills in business automation, big data, and artificial intelligence solutions. The unprecedented pipeline of public investment across transport and social infrastructure will place significant pressure on government and industry to respond and also creates the opportunity for a skills legacy. Such a large program of work increases pressures on capability and capacity in both the private and public sectors. This infrastructure work is necessary to stimulate our softening economy and lift domestic productivity and amenity, but it also carries with it pressures on particular skills which are in high demand because they are the same skills required elsewhere in the economy – such as in the mining sector. This expanded demand for skilled workers is coming at a time when the
impacts of our ageing society are also intensifying. Our own analysis of data related to the manufacturing sector shows that as of May 2019, there were 38,600 people aged 65 and over who are working in manufacturing (4.2 per cent of the workforce). This has doubled from 21,100 (2.1 per cent) one decade earlier in May 2009. While the increased labour force participation is positive, people in this age group are heading for retirement in the near future without the same level of skilled workers to replace them. It is a similar story for the economy overall. As of June 2019, 610,676 people aged 65 and over are working (4.7 per cent of the workforce) and this is up from 300,107 (2.8 per cent) one decade earlier in June 2009. The state of apprenticeships and traineeships in Australia is illustrative. We find ourselves dealing with 259,385 apprentices and trainees in training in 2018 compared with 387,100 a decade ago and a high of 446,000 in 2012. This is the lowest for a decade. This drop in volume can be directly linked to a series of policy adjustments including the removal or reduction of many employer incentives. Apprenticeship systems, where they work well around the world, enjoy strong support from both government and employers. This support acknowledges that the core principle of an apprenticeship is the employment relationship between the employer and the apprentice. Policy reforms of the apprenticeship system have let decision-making and funding drift progressively to training providers and support services. For us to return our apprenticeship system to be the most effective trade skill development pathway, we would need to restore employer incentives, ensure national consistency of product and build strong, flexible and quality provision. The apprenticeship system should be defined as an employment-based learning pathway,
function across the economy and at many Australian Qualification Framework (AQF) levels. Higher apprenticeships should become a flagship of this reform. We are unlikely to achieve a step change in our apprenticeship system without a significantly improved approach. This approach must be national. There is no need for jurisdictional difference in national apprenticeship arrangements. However, focussing upon the apprenticeship system is only part of the issue. The training system as a whole needs urgent and serious attention. The establishment of the National Skills Commission provides a rare opportunity for the Commonwealth and states and territories to develop new, transparent and fit-for-purpose partnership arrangements. These arrangements should drive national approaches to qualifications development, apprenticeship reform, labour market mobility, and establishment of price that will enable improved and transparent funding mechanisms. Of course, a number of issues sit within this. For example, the problems of speed-to-market for qualification development remain unacceptably slow and industry also needs to embrace an improved model. The direct and formal engagement of key industry and government stakeholders in the system will enable the right level of “buy in” to drive improved outcomes. A significant consideration is to address the excessively complex and duplicative Commonwealth and state and territory roles and responsibilities in the training system. The National Skills Commission is an important first step for all parties to engage with. Commitment to a roadmap for reform should be a key outcome of the process overseen by COAG. A genuinely national training system that meets the needs of economy may then finally be possible. manmonthly.com.au
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