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A complex sector such as manufacturing always has to keep in mind the interplay of policy, technology, and the community, and in this issue, all three come together. After price jumps in the past few years, Australian manufacturers have had to contend with a new energy landscape. High gas prices at triple their historic levels, federal and state government policy, and community attitudes to energy use and generation, are impacting how manufacturers drive their operations.

At the same time, advancements in technology, both within the plant

and down the power lines, mean that manufacturers have access to a whole range of energy options that were previously unheard of. Whether that be demand response, Power Purchasing Agreements (PPA), or in-house electricity generation, manufacturers have the opportunities to take control of their power. Then, emerging on the horizon is the potential of hydrogen to be part of the energy mix, and drive a new wave of renewable manufacturing.

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Comment

SYED SHAH – Managing Editor, Manufacturers’ Monthly

Getting smarter with manufacturing

F

OR years, since the concept of the Internet of Things (IoT) has been uploaded to the traditional manufacturing mainframe, there has been an issue with the skills gap. At nearly every robotics, automation, and advanced manufacturing conference I have attended internationally in the past 10 years, this “gap” has been brought up time and again.

Despite the excitement generated through suggested solutions such as increasing collaboration with local universities, the gap has not narrowed. This may have been due to the ongoing maturation of the IoT sector.

Today, the IoT for the industrial sector – the Industrial Internet of Things (IIoT) or Industry 4.0, depending on the organisation you’re from – is highly developed, and the global market for it is large.

Accenture’s 2015 report Driving Unconventional Growth through the Industrial Internet of Things already stated that the IIoT market will be more than US$500 billion

4 OCTOBER 2019 Manufacturers’ Monthly

($733.3 billion) by 2020.

To be fair, 10 years ago, internationally, there might have been a few developed collaborations between some forward-thinking software or supply chain companies which bridged the “missing link” between universities who offered science, technology, engineering, and mathematics (STEM) courses and real-life work experience. The interns or apprentices of those programs may have been the first to not have statements like “forget what you’ve been taught at school” given to them on their first day.

In present day Australia, there is an active drive towards involvement by governments to have training implemented before students get into the workforce. Also, there are programs to reskill workers in the existing workforce for the new, advanced skills needed in a rapidly changing manufacturing sector.

Hence rapid change poses the next challenge to the bridge between schools and the real world.

The collaborations from a few years back between TAFE and industry partners would need updating in terms of training manuals, styles, technology, equipment, etc. In my opinion, the structure for collaborations to happen exists, but how agile are both sides willing to understand the urgency and react to integrate training related to IIoT technologies still remains to be seen. Victorian Minister for Training and Skills and Higher Education, Gayle Tierney, said that the Victorian government listens to the (manufacturing) industry who tells it where the skills gaps are and where to fill them. If this is accurate, then this should be the direction the rest of the Australian states should be taking to make sure that even existing workers can be retrained and upskilled.

Whether the person is a fresh graduate or someone that is retrained, as long as he or she is equipped with the adequate skillset where smart manufacturing is concerned (analytics, automation,

artificial intelligence, etc.), then a difference can be made on the manufacturing floor.

The manufacturing sector in Australia is key to the growth of the Australian economy. It is also a power-intensive sector involving great energy consumption. In a manufacturing plant, energy expenditures are a major cost consideration, alongside labour and rent. It makes sense to reduce consumption by increasing energy efficiency to help companies not only reduce operational costs but sustain their competitiveness.

Smart technology can help with energy efficiency. Data management of components can help with monitoring energy usage.

In our energy management feature, Luke Menzel, CEO of the Energy Efficiency Council, talks about how having smart energy management systems can help manufacturers make good energy investment decisions. This involves the efficient use of data to manage energy usage and smarter energy procurement.

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Comment

GEOFF CRITTENDEN – CEO, Weld Australia

Australia’s shipbuilding program presents an opportunity, but also a challenge to train and retain skilled trades professionals.

Building an internationally competitive shipbuilding sovereign capability

I

recently visited two BAE Systems shipyards in Glasgow, Scotland: Govan Shipyard, and Scotstoun Shipyard. It is here that BAE Systems is building the eight Type 26 Frigates ordered by the Royal Navy. The “First of Class” HMS Glasgow is currently under fabrication, due for completion in 2023.

The purpose of my visit was to observe the production of the HMS Glasgow, in order to understand BAE’s process for welder training in their shipyards. BAE has a comprehensive training program tailored to BAE’s needs and the requirements of the shipyards. Based on the UK Marine Engineering Framework, this training is delivered by an integrated TAFE (Clydebank Technical College) and the BAE Welding School.

The three-year program consists of 6 OCTOBER 2019 Manufacturers’ Monthly

over 2,100 hours of training, including over 1,300 of practical welding experience – compared with the Australian equivalent of 210 hours – and over 800 hours of theory.

As a result, BAE has an extremely stable and experienced steel workforce, many of whom have worked in the yards since leaving school. This workforce consists of approximately 420 welders (comprised of 300 boilermakers and 120 pipe fitters), who demonstrate not only a very high level of skill, but also a deep understanding of the shipbuilding process.

During my visit, I learnt some lessons that will be invaluable when it comes establishing Australia’s own Frigate shipyard in South Australia. BAE Systems Australia’s new subsidiary, ASC Shipbuilding,

has been awarded a contract by the Australian Government that provides the framework for the design and build of nine Hunter Class Frigates for the Royal Australian Navy.

The challenge is to ensure Australia has the appropriately sized, skilled, and readily-available workforce to deliver this major project. Developing this workforce presents a complex, national, long-term challenge – it requires a significant amount of individual training that needs to be delivered

by TAFE and companies to meet global standards.

This shortage of qualified and certified welders is certainly not the fault of Australian tradespeople. It has been many years since the trades of welder and boilermaker were listed in the national VET system.

Instead, for nearly 15 years, TAFE has been required to teach courses such as fabrication, in which the welding modules are of varying degrees of complexity, and are usually optional.

This has not produced welders that are skilled or qualified to the levels needed by industry, especially within the defence sector, and the new training package does not appear to be any better.

A global shortage of welders There is a global shortage of welders caused by a combination of demographics and the internet age.

According to a recent employment outlook survey in Australia, skilled trades workers (such as electricians and welders), engineers (electrical, civil and mechanical), and technicians are scarce. Over 34 per cent of manmonthly.com.au

Australian employers admit that filling job vacancies is increasingly difficult, mainly due to lack of applicants (25 per cent), lack of skills (21 per cent), and lack of experience (19 per cent).

In fact, in a recent survey, 75,000 Australian tradesmen identified as being welders. Of these, just 10 per cent actually hold a welding qualification or certification. Not surprisingly, when it comes to completing a welding coupon – an AS/NZS 1554 Structural Steel Welding full penetration fillet weld – the failure rate is 80 per cent. For a weld that complies with ISO 9606-1 Qualification testing of welders - Fusion welding - Part 1: Steels, the failure rate is nearly 90 per cent.

In addition, approximately 30 per cent of Australia’s existing welding workforce is aged over 45 years. This heavy proportion of older skilled trade workers, particularly welders, puts into focus the looming issues that industrial sectors are likely to face when baby boomers finally reach retirement age – welding positions will simply become impossible to fill, particularly given the projected increased demand.

Our lack of skilled workers combined with an aging workforce demographic is exacerbated by strong employment growth in the manufacturing sector. Although Australia’s overall employment

growth rate has dropped over recent months, recent labour force data from the Australian Bureau of Statistics indicates that employment growth among manufacturers surged by 86,000 over the past 12 months – the highest growth rate of any Australian industry – closely followed by both the mining and construction industries.

This employment growth rate is not surprising given some of the major projects on the horizon, including the $90 billion Naval Shipbuilding Plan, and other major infrastructure projects such as the $12 billion Sydney Metro project, and the $5 billion Melbourne Airport Rail Link.

The solution Established shipbuilding nations, such as the US, Japan, Korea, the UK, and Germany, with whom we wish to compete, are spending millions of dollars on programs to attract young men and women into engineering trades. In comparison, Australia is just getting started in trying to recreate a buzz around welding and careers in shipbuilding.

It is anticipated that the continuous naval shipbuilding program in South Australia will require around 2,600 tradespeople from 2020 to 2027. Almost half of this demand will be for welding professionals. We cannot simply wave a magic wand and expect these

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Although Australia’s overall employment growth rate has dropped over recent months, recent labour force data from the Australian Bureau of Statistics indicates that employment growth among manufacturers surged by 86,000 over the past 12 months – the highest growth rate of any Australian industry – closely followed by both the mining and construction industries. skilled tradespeople to appear.

It is important not to fall into the trap of thinking that this is a problem unique to South Australia.

Every state is currently suffering shortages in skilled tradespeople, including welders. Simply moving activity around Australia will not address this issue.

I am often accused of being a scare monger for pointing out that we already have a critical shortage of qualified welders – and that’s before we commence projected defence and infrastructure projects – but it is clear that the issue must be addressed.

Australia requires a significant increase in skilled, qualified trades workers to meet future demand on major projects in industries

as diverse as infrastructure, rolling stock, resources, defence, shipbuilding, and aerospace.

The Commonwealth needs to: • Recognise the enormity of the task of building internationally competitive shipbuilding sovereign capability, and understand that the issue of developing welder capability cannot be outsourced to the states and primes; • Take responsibility for delivering the necessary training and outreach programs to build a competent and sustainable workforce; and • Stop talking about the “Valleys of Death” and do something to retain the competent workforce currently working for ASC.

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Manufacturers’ Monthly OCTOBER 2019 7

News@MM Defence sets out new terms of engagement with manufacturers In two announcements in August, the Australian Department of Defence has reached out to industry to make it easier for manufacturers to supply products for defence applications.

In a change to the Defence Industry Security Program (DISP), Australian businesses will no longer need a Defence contract to gain DISP membership. Companies can now self-nominate for DISP membership.

DISP is the assurance program whereby the goods and services that Defence acquires are safeguarded.

According to Steven Scanlan, acting assistant secretary security policy and services, “DISP allows industry to demonstrate their security practices when partnering with Defence”.

Once DISP members, companies can access the information, guidance, and services to create the necessary security practices for tendering for classified information and assets.

“Industry can now proactively elect to put in place the appropriate security practices and become recognised by Defence before bidding on future Defence contracts,” said Scanlan.

With Defence seeking to have a greater amount of Australianmanufactured content in Defence projects, this change allows local manufacturers to be better prepared for the requirements stipulated in these contracts. In addition, being a DISP member prepares Australian manufacturers to readily access international defence contracts.

“By becoming a member of DISP, there is the opportunity to join international supply chains, with reciprocal recognition available through the Government’s agreements with countries such as France and Germany,” said Scanlan.

In a separate announcement, the Australian Industry Group (Ai

Manufacturers will no longer need a defence contract to gain DISP membership.

Group) signed an agreement with the Department of Defence to define core principles, values, and shared objectives for Defence and industrial manufacturers. The agreement serves as a guide for the behaviours expected in the procurement process.

“It creates a solid base for strengthened, enhanced and more

positive relationships based on mutual trust and respect,” said Ai Group chief executive, Innes Willox.

The two parties agreed to work in good faith to implement the principles, which include continuous improvement, positive relationships, and reducing costs involved in engagement and negotiation.

NSW shipbuilder supplies US Coast Guard, Army The US subsidiary of Port Macquarie, NSW, shipbuilder Birdon, has secured two contracts worth US$390 million ($575 m).

The contracts are to supply the US Army and the US Coast Guard.

For the US Army contract, Birdon will supply bridge erection boats (BEBs). This contract was first formalised in 2014 but has been renewed for another five years. The

The Port Macquarie manufacturer has extended its contracts with US agencies.

8 OCTOBER 2019 Manufacturers’ Monthly

shipbuilder will manufacture 247 additional BEBs, requiring an increase in production facilities by 40 per cent and staffing by 25 per cent.

“It’s a strong endorsement of our capacity to deliver to schedule and on budget that the US Army has seen fit to extend our contract for a further five years. The extension builds in additional scope for Birdon and places us in a strong position to secure other

global BEB opportunities and future US Department of Defence work,” said Birdon CEO, Jamie Bruce.

The design that Birdon is offering to the US Army is based on one developed for the Australian Army in 2003.

For the US Coast Guard, Birdon will refit and upgrade the agency’s fleet of 107 motor lifeboat (MLB) vessels. The 47-foot boats have reached the end of their initial 25year service life, however, Birdon will extend the working life of the boats for another 25 years while enhancing the MLBs operational capability and performance.

Birdon will undertake the refitting and manufacturing in their shipyards in Oregon and Virginia, and will be managed from Birdon America’s headquarters in Denver, Colorado.

“The next generation of USCG vessels have very specific operational

requirements, which have to be incorporated into the Service Life Extension Program (SLEP). By demonstrating beyond doubt that we could deliver on these requirements, Birdon presented as a compelling and low-risk option in the Coast Guard’s assessment of tenders,” said Bruce.

While these contracts will be delivered from the US, according to Birdon, the successful tender process was enabled by the company’s Australian operations.

“We’re proud that these significant maritime contracts, won in one of the world’s most competitive defence procurement markets, will be overseen from our headquarters in Port Macquarie. Birdon is now a global business with enduring roots in the Hastings region. As we have grown, we’ve had to bolster our staffing and capability in Port Macquarie,” said Bruce. manmonthly.com.au

News@MM Circular economy: closing the loop The potential of products made from recycled materials was on display at the Advanced Manufacturing Growth Centre’s (AMGC) “The Path to a Circular Economy” event.

In focus were materials such as plastics and textiles, which through advanced manufacturing processes are being re-used or recycled to create new products.

Single-use plastics, which would otherwise end up in landfill or the environment are being broken down and repurposed for optical devices by NSW company, Dresden Optics.

Combining new and used waste plastics, Dresden makes glasses from milk bottle tops, marine debris that has washed up on beaches, and a number of other products.

According to Michael Sharpe, NSW director of AMGC, not only are the waste materials valuable for manufacturers as a source of raw

materials, but also as a potential branding opportunity, through tracing the origin of the product.

“With advanced manufacturing technology, sensors can tell people which beach the plastic washed up on, on what date, what time it was sent, what date it arrived to the shop, and now what they are wearing on their face. There’s a whole traceability around the waste as well, which I think is fantastic. People really value that information,” said Sharpe.

For textile manufacturers, there is already the foundations of a circular economy to tap into, through re-use programs run through charities and sold in op-shops. According to UNSW scientia professor, Veena Sahajwalla, the next step is to take those fabrics which have reached the end of their use life after going through second-hand networks and create

The forum highlighted the ways that councils and manufacturers can work together to reduce waste. new products.

“We need to start to think, ‘well if a product is not fit for reuse as a garment, does that mean that those fundamental elements, those fibres that are present in our garments

are useless?’

“Of course not. Just because something has fallen apart at a macro level, at the micro level those fibres are still well and truly alive and kicking,” said Sahajwalla.

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Manufacturers’ Monthly OCTOBER 2019 9

News@MM Western Sydney Airport to be hub for advanced manufacturing Western Sydney Airport and the surrounding Aerotropolis is to become a hub for advanced manufacturing, with agreements finalised between the NSW government and global industrial firms.

Announced during Premier Gladys Berejiklian’s visit to Europe with Minister for Jobs, Investment, Tourism and Western Sydney, Stuart Ayres, four statements pointed towards the future activities that will be undertaken in the vicinity of Western Sydney international (NancyBird Walton) Airport.

A joint venture between GE Additive, the 3D printing arm of the American industrial conglomerate, will lead to the creation of an industrial-scale 3D printing facility at the Western Sydney Aerotropolis.

The NSW government hopes that this leads to programs in the aerospace, medical, and automotive sector.

“3D printing is on the cutting edge of manufacturing globally and

this deal will help make Western Sydney the nation’s leader,” said Berejiklian.

Jason Oliver, president and CEO of GE Additive, highlighted how this commitment will form part of a wider network of advanced manufacturing in the growing region.

“Adopting an ecosystem approach to additive manufacturing will drive the adoption of this new technology and the development of new businesses and skilled jobs,” said Oliver.

Also announced during Berejiklian’s visit to Europe is a partnership between the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC).

“This facility has transformed Sheffield’s job market and trained more than 1300 highly-skilled technical apprentices who are now working with Rolls-Royce, Boeing and BAE Systems,” said Berejiklian.

The AMRC has led to the growth of a cluster of hi-tech companies

The Aerotropolis will house a number of global manufacturers. around its reuse of an old coking plant in Sheffield.

Ensuring that industry follows these announcements is Berejiklian’s agreement with BAE Systems to invest in the creation of a space research and development

facility in the Aerotropolis.

“BAE Systems Australia’s interest in NSW as a destination for this research facility is a huge vote of confidence in our economy and our plans for the new airport city,” said Berejiklian.

EV charging network spreads across highway system Using Australian-manufactured charging technology, drivers will be able to travel without fear of a flat battery.

10 OCTOBER 2019 Manufacturers’ Monthly

For Australians keen to ride the global wave of electric vehicles for their energy, environmental, and economic benefits, one of the stumbling blocks has been the lack of charging stations dispersed outside of major centres.

This limitation will be countered by a new plan for 42 charging stations from Evie Networks, which will connect Adelaide, Melbourne, Canberra, Sydney, and Brisbane.

The charging stations will use Australian manufacturer Tritium’s technology, which has already installed their technology in 29 countries around the world.

All of the chargers rolled out by Evie Networks will be powered by renewable energy, and construction has begun on the first site, north of Brisbane.

The company hopes that 24 sites will be up and running after 12 months.

The chargers will allow vehicles to travel up to 100km after 15 minutes of charging, with 350kW of power.

The chargers will support all current electric vehicle models.

Unlike other countries where urban centres are clustered closer together, Australia’s disparate cities and dispersed geography have hampered the distribution of electric vehicle charging networks.

To counter this, the Australian Renewable Energy Agency (ARENA), has provided $15 million to Evie Networks to support the charging network.

The total cost of the network is estimated at $50.2m. manmonthly.com.au

News@MM Bluescope to invest a billion in US production Australian steelmaker, Bluescope Steel, has announced that it will invest almost $1 billion in its Ohio, US steel mill, North Star.

Bluescope will expand its US production facilities by 40 per cent, and hopes that the expansion will be completed by 2023.

One of the drivers of the expansion into the North American market is the cheaper cost of energy in the US, when compared to Australia, a situation which Bluescope CEO, Mark Vassella, lamented as a “tragedy” for Australian manufacturing.

Announced as part of the company’s summary of its 2019 financial year activities, the investment follows from the company’s net profit of just over $1b.

While the company restructured its Port Kembla steelworks in 2015, the future for Bluescope is focussed on long term, profitable growth, and

North Star’s extension is part of that vision, according to Cassella.

“This project fits our strategy perfectly. It offers long-term sustainable earnings growth from a high-quality asset,” he said.

In the announcement, Bluescope also updated investors and the public on its corporate projects, including a new, five-year, health, safety and environment strategy, as well as increasing disclosures on its climate change strategy.

Bluescope also indicated that work had been done on its Supplier Code of Conduct, a diversity and inclusion initiatives, with 40 per cent of new recruits to operator roles now being women.

With energy such a big factor in the company’s growth in the US, chief executive of Ai Group, Innes Willox, noted how energy policy is an area where Australian governments could support local manufacturing.

Growing from its Port Kembla base, Bluescope will continue to expand in the US. “While the result is a testament to strong management, it should also serve as a wake-up call that without addressing our policy challenges,

Australia runs the risk of failing to take advantage of the real strengths that underpin our economy,” said Willox.

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Manufacturers’ Monthly OCTOBER 2019 11

News @MM Drop in apprenticeship numbers necessitates action: Ai Group With Australian apprenticeship and traineeship numbers falling to a ten year low of 259,385 in 2018, chief executive of Australian Industry Group (Ai Group), Innes Willox, wrote to federal and state governments ahead of their meeting in Cairns on August 9.

With global economic uncertainty and digitalisation driving the transformation of industry, Willox argued that the current vocational education and training (VET) system is not equipped to deliver students with the skills needed.

“It is our view that the VET system is in a less than optimal state to deliver on this national imperative,” wrote Willox.

Willox noted that the VET sector has been hampered by the FEE-HELP scandal, inconsistency across different states, reductions in funding, and asynchronous qualification arrangements. In sum, Willox noted that “confidence needs

to be restored to the VET system”.

Representing employers, Ai Group cited research that the organisation had done in 2018 which showed that 75 per cent of employers found it difficult to recruit suitably qualified or skilled people. Most in demand were technicians and trades workers, as well as professionals in all STEM fields.

In responding to the issues outlined in Willox’s letter, the COAG meeting released a communique, “Vision for Vocational Education and Training”.

Noting that “VET and higher education are equal and integral parts of a joined up and accessible post-secondary education system” the vision set out broad priorities for the governments to improve the sector.

The states, territories and federal governments joined together to note that, “all jurisdictions acknowledge the importance of a viable and robust system of both public and private

According to Ai Group, the VET system is not up-to-scratch.

providers, and the particular role of states and territories in facilitating the public provision of VET”.

To address the challenges, Willox argued for the establishment of employer incentives, consistent qualifications between states, and input from industry. While the COAG communique did not explicitly endorse these measures,

the statement from the heads of government noted that the sector should be “responsive to the needs of private industry and the public sector, ensuring employers have ready access to a highly skilled and adaptable workforce, while acknowledging industry has shared responsibility for growing a skilled economy”.

Trimaran shipbuilder grows ongoing operations Australian ship manufacturer, Austal, has signed a contract worth $34 million to sustain the life of another ship built for the US Department of Defense.

The contract includes the dry docking of the USS Tulsa, as well

as the USS Manchester, which was announced in January 2019 and worth $21m. Both of these ships are littoral combat ships (LCS) manufactured by Austal, known for their trimaran designs.

This kind of contract extends the

The Australian shipbuilder will maintain its vessels that are in service in the US.

12 OCTOBER 2019 Manufacturers’ Monthly

work for the Australian company and its US subsidiary beyond the design and manufacture of the vessels.

“Austal’s sustainment business is continuing to expand as more Austaldesigned and constructed naval vessels are delivered into service,” said Austal CEO, David Singleton.

“And there’s a solid pipeline of vessels still under construction.”

“Construction of a ship takes about two years, whereas sustainment can provide continuing work and regular earnings for Austal for many years, even decades,” said Singleton.

The USS Tulsa and the USS Manchester are two of the 10 LCS ships that Austal has produced for the US Department of Defense.

Nine more are on order. The ships are built in Austal’s shipbuilding operations in Mobile, Alabama.

The site allows for the production of multiple veseels simultaneously.

Currently being assembled are the USS Mobile and the USS Canberra.

The USS Kansas City and the USS Oakland are currently undergoing a trial process.

The maintenance of the ships will be carried out at the US subsidiary of Austal, located in San Diego, California. These contracts with the US Department of Defence has seen the Henderson, WA headquartered shipbuilder expand its US footprint, with added service capacity in both Mobile, Alabama and in Singapore.

The ASX-listed Austal has produced vessels for more than 30 years for 100 operators in 54 countries, across defence and commercial markets. The shipbuilder produces the world’s largest trimaran ferry. manmonthly.com.au

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News @MM New fund to support purchase of technology Manufacturers will be able to take advantage of $50 million in funding from the federal government for the purchase of new technology, with the announcement of the Manufacturing Modernisation Fund.

Launched at Emesent, a drone mapping start-up, the funding from the government will award matched funding for investments in new technologies.

“Investing in technology can transform businesses, enabling them to become more productive, manufacture new products and create new jobs,” said Minister for Industry, Science, and Technology, Karen Andrews.

With Industry 4.0 technologies promising rapid growth in efficiencies for manufacturers, the fund will address the high cost of initial investment in innovative technology.

“For companies like ours it would help us invest further in manufacturing the product; a grant such as this enables us to invest

Funding, commercialising, and developing Australian-made products will be supported by the new initiative. even more in the research and development of different materials and new technologies, and to hire more people,” said Lorraine Elsmore, marketing director of Emesent.

With industry now largely aware of the value of Industry 4.0, and 37 per cent of business leaders fully ready for Industry 4.0, according

to a Deloitte report published in January 2019, investing in these technologies is the next step.

Indeed, in an Industry 4.0 report released by the Ai Group at the beginning of August, business and technology investment was a key recommendation.

“The fund will provide grants to small and medium manufacturing

businesses so they can invest in capital equipment and new technologies to modernise and employ more Australians. It will also support businesses to upskill workers to maximise the benefits of Technology,” said Andrews.

The fund itself will be broken down into two parts. First, $20m for matched grants of between $50,000 and $100,000 for small scale technology investments. Second, $30m for large scale grants of up to $1m on a three-to-one funding basis with industry for transformative investments in technologies and processes.

“As a young business about to celebrate its first anniversary, which has grown from two co-founders and five employees to 21 full-time staff, this opens a lot of doors,” said Elsmore. Emesent is currently exploring new technologies in robotics in partnership with a global mining company to make mining safer when operating in challenging environments.

New tool to cut energy bills Small manufacturing businesses will be able to lower their energy costs with a new tool from the federal government.

The Business Energy Advice Program (BEAP) provides businesses with a personalised energy advice service and an online tool to identify where the business can trim their energy bill.

For businesses with 6-20 employees, the NSW Business Chamber will deliver personalised energy consultations.

To view and choose between energy plans and services available in the market, AlphaBeta and Xero have lent their support to create the Small Business Energy Check online benchmarking tool.

Businesses will be able to compare how much they are spending on energy with similar businesses in their sector and vicinity.

With this information, businesses 14 OCTOBER 2019 Manufacturers’ Monthly

are encouraged to make changes to equipment and usage to improve energy efficiency by identifying areas within the business and outside of it that they can save on energy.

With the energy market increasingly complex, the BEAP is designed to simply the process of selecting an energy provider for small businesses.

As part of the BEAP, the government is holding workshops to explore how the data that goes into the Small Business Energy Check can enable innovation for both small businesses and the energy sector.

The service operates in addition to the default market offer, which from July 1 has allowed businesses in NSW, SA and Queensland to save up to $896 on their energy bill through caps on standing electricity orders.

Designed to simplify and reduce the cost of energy, the program has been developed for SMEs.

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Industry Focus The federal government has recently announced measures to reduce the gas price for industry and consumers.

Flicking the switch to a powered manufacturing sector With the federal government announcing measures to reduce the price of electricity and gas for industrial consumers, the manufacturing industry confronts a number of alternate pathways to a green energy future. Connor Pearce reports.

W

HEN the federal government announced on August 6 that is was going to act to reduce gas prices across Australia, a collective sigh of relief could almost be heard from the manufacturing sector, with the sound of a sector scratching its head following soon after.

In the five years since 2014, gas prices in Australia have tripled.

While this has been felt in the wider consumer market in the form of higher electricity prices, particularly in South Australia where gas is utilised for electricity generation, manufacturers have seen the impact of price rises first hand.

Tony Wood, former general manager of Origin Energy and current energy program director at the Grattan Institute, explained that for a small core of manufacturing businesses, price rises have been a visceral impact on their business.

“There’s a relatively small number of businesses who are what I call gas intensive. That is, the gas input is a material part of their cost structure.

There’s not that many of them but the consequences of a gas price increase is quite material and they’ve been grappling with this issue now for several years. Some of them remain 16 OCTOBER 2019 Manufacturers’ Monthly

in deep trouble.”

Those in deep trouble included Dow Chemical, which announced the closure of its manufacturing site in Altona, near Melbourne, earlier this year. Citing energy price increases as one of the reasons behind its demise, Ben Davis, Victorian secretary of the Australian Workers Union, at the time put it more bluntly.

“While politicians bicker, companies close.”

Wood cited a number of other businesses that are affected by high gas prices, including food processors, brick works, cement processors, kilns, as well as chemical industries such as fertiliser manufacturers, petrochemical, and plastics manufacturing. Despite this being a large group of industries, Wood highlighted that they have received less political attention than domestic energy consumers.

“One of the problems that manufacturing group has is because every business in Australia virtually uses electricity somewhere, the gas side of it has not historically got the same level of profile as electricity prices have.”

The joint announcement on August 6 seemed to change this dynamic. Minister for Energy,

Angus Taylor, joined Treasurer, Josh Frydenburg and Minister for Resources, Matt Canavan in outlining that the government will review the Australian Domestic Gas Security Mechanism (ADGSM), increase transparency and supply, and most radically, consider the establishment of a gas reservation scheme. The gas reservation scheme, which requires state government cooperation, would be the greatest shift from the federal government, which has historically supported gas producers extracting gas in Australia and then selling it overseas for higher prices than could be found locally. With such a scheme only in consideration, and dependent upon states reviewing their bans on coal seam gas exploration, Wood was uncomittable about how realistic the proposal was.

“The Commonwealth government, as far as I’m aware, can’t make decisions about domestic gas, it can only control exports. So, if it does create a gas reservation scheme, can it actually then require that gas be sold at a certain price, or does it just mean that it will make sure that domestic consumers have access to the gas but the gas price will be determined by either the market or export parity netback, the price the

gas producer can expect to receive for exporting its gas?”

With these questions remaining unanswered, and pushback from states, the potential for a gas reservation scheme remains unclear, a situation that Wood described as “very messy”.

“This is not a formal inquiry or review. The government has indicated that they just want to consider their options. The government is also saying, ‘We will only do this if states remove or lift their moratoriums or constraints on onshore gas exploration.’”

With such a lack of clarity regarding the reservation mechanism, attention has turned to other aspects of the government’s pledge to reduce gas prices, one of which is the suggestion that current processes that rely upon gas could turn to electricity.

While the ability of some manufacturers to use electricity for energy intensive processes is possible, Wood remained sceptical.

“It’s questionable whether you can get high enough temperatures with electricity as opposed to what you get with gas. In some cases, the manufacturers, particularly in some parts of regional Australia, are in manmonthly.com.au

IndustryFocus situations where the power substations and so forth may not have the capacity to supply the electricity, even if electricity can provide the heat.”

Luke Menzel, chief executive officer of the Energy Efficiency Council, noted that fuel switching is a significant opportunity for some manufacturers, particularly when businesses can produce their own renewable electricity onsite, however noted that there are some instances where gas will still be required.

“It’s not a solution for every element of the gas challenge, particularly for manufacturers that use gas as part of their feedstock,” he said.

cheap processes, according to Wood.

“For many years, energy was so cheap that we had little incentive to be efficient with the way that we used it.”

Menzel concurred, highlighting that, “For most manufacturers this hasn’t been something that’s been high on their radar because energy prices were historically low in Australia. That really changed in 2017”.

With the gas price jumping to extremes of $20 per gigajoule in 2017, the price has more recently stabilised at roughly $10 per gigajoule, a level that Menzel notes is the new normal, with impact on existing businesses.

“Most players expect gas prices to stay well above their historic lows. That places a significant strain on some manufacturers whose business model is predicated upon significantly lower gas prices than we currently have.”

For these manufacturers, as well as those that do not use a significant amount of energy in

Held back by history One element that is exacerbating the impact of current energy prices rises, both gas and electricity, is the history of Australian energy market. While the first step for many manufacturers to reduce their energy bill, is to reduce their energy use, the history of cheap energy has led to inefficient, but

their processes, energy prices have become a more significant part of their cost structure. To counteract this and remain competitive, energy efficiency has come to front of mind for government and industry. In addition to new tool announced by the federal government, the Business Energy Advice Program, which allows users to cut down on energy use, there is more interest in purchasing energy efficient products as part of a business’s capital replacement cycle.

“When I was running Origin’s retail business we had a lot of commercial and industrial customers who were becoming more interested in energy efficiency. Their position was: ‘Right, next time we replace our cookers, boilers, or air-conditioning units, we will pay attention to the energy efficiency of that process,’” said Wood.

Menzel also notes that there are significant savings to be made through energy efficiency.

“Gas fuelled process heating is incredibly common in manufacturing processes, and improved efficiency

can significantly reduce energy spend. Compressed air systems are also very energy intensive, and are another big efficiency opportunity for many manufacturers. Across all technologies, manufacturers can often cut energy costs by around 30 per cent without major changes to plant and equipment.”

However Menzel noted it’s not just about efficiency; it’s about having an energy management system that can drive a balanced range of measures.

“The manufacturers we see that are really on top of their energy management have good, granular data about their energy use, and are using it to drive investment decisions.

Businesses have a range of levers that they can pull, which include energy efficiency, renewables, demand response, and smarter energy procurement. With the right data and advice, businesses can bring together a mix of solutions that will work for them” said Menzel.

Australian chain manufacturer, KITO PWB, was able to invest in its

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Industry Focus

As new fuels enter the mix and technologies improve, renewable energy is increasingly utilised by manufacturers. own electricity generation to meet the energy demands of its energy intensive process. The company installed 885 solar panels on the roof of its plant in Bundoora.

“Chain manufacturing machines are very power thirsty. For us, particularly with the closure of the Hazelwood power station in Victoria a couple of years ago, power costs have gone up across the board so it’s trying to save some of our power costs. Putting the panels on the roof has saved us 25 per cent of our power costs, but it’s also equally important in giving us a bit more of a green footprint,” said export and marketing executive at KITO PWB, Andrew Betts.

By dealing with both its energy price and the business’s impact on the environment, KITO PWB is linking energy and environment.

One method that is gaining attention is demand response, whereby large energy users temporarily reduce their energy use when prices are high. If the Australian Energy Market Commission’s (AEMC) rule change is successful, manufacturers could have greater control over their energy prices and have wider benefits, as Marija Petkovic, managing director of Energy Synapse highlights.

“Wholesale prices can reach as 18 OCTOBER 2019 Manufacturers’ Monthly

high as $14,500/MWh, so it is easy to see how large energy users can receive a significant benefit when they have a sophisticated operational strategy and the right contractual arrangements.

“Another important aspect of this proposed change is that it will allow demand response to be bid directly into the wholesale market and compete with generators in the price setting process. This extra injection of competition will benefit all consumers (even those who cannot provide demand response themselves) by putting downward pressure on prices.”

However, without a national incentive to purchase cheaper, renewable energy, it is up to each business to take action voluntarily.

“If you don’t have a commercial obligation to do these things then why would they,” said Wood. “The international literature says that the first thing you should do is give people an incentive to invest in these energy reduction technologies by making sure that the existing gas users and the carbon emissions coming from those are constrained – most efficiently by a carbon price.”

A silver bullet?

Amid the discussion of gas prices, energy efficiency, and

electrification, a new technology is emerging that could upend all of these possibilities. The most abundant chemical element in the universe, hydrogen, is increasingly being touted as an alternative to gas, particularly for industrial heat uses, highlighted Wood.

“Of all the applications that people rabbit on about in relation to hydrogen I think industrial processing as a source of heat might actually be the one that is most interesting.

This is because, for a lot of other applications there are alternatives – they can use electricity, whereas in this case there’s challenges.”

Currently, hydrogen as an energy source is produced from coal, as is being explored in the La Trobe Valley, with the resulting CO2 being captured and stored underground.

The alternate method for producing hydrogen requires an electrolyser to produced hydrogen from water. If the electrolyser is run on renewable energy, it is an entirely zero emissions energy source, with the potential to replace gas in energy-intensive processes.

The barrier to either of these techniques, currently, is not technological, but rather cost. The potential to reduce this hurdle is a key issue for the current National Hydrogen Strategy, led by Australia’s

chief scientist, Alan Finkel.

As Wood highlights, however, lurking in the background to this discussion of alternative energy sources, and the investment from governments and corporations, is that it is all driven by the need to decarbonise the economy.

“This conversation is fundamentally driven by the climate change debate and in the middle of all that is what sort of climate policy we should have. Of course in Australia we don’t have very much.”

According to Wood, until there is an incentive to change, or a penalty for not doing so, the potential for hydrogen, or any other alternative, will be hampered, and industrial energy users will have to adapt as the energy market continues to transition.

Overall, a new approach is needed.

“At the Federal level, we have had a decade of policy uncertainty coupled with snap interventionist decisions such as Snowy 2.0. This approach creates unnecessary risk in the market, and in the end, it is the consumer who pays for it,” said Petkovic.

“Ideally, what we would need is a bipartisan national approach that integrates energy and emissions policy and can provide a stable long term framework to transition to clean energy.” manmonthly.com.au

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Issues &Insights Manufacturing and the circular economy Manufacturers have the potential to play a key part in tackling the waste crisis.

Connor Pearce reports.

A

TERM that is gaining broader recognition to describe a new production paradigm is the circular economy, whereby products are produced from materials already in the market, rather than extracted from the environment, and when they reach the end of their life they are recycled, re-used, or returned to a productive capacity.

One person who is leading this shift is Veena Sahajwalla. A Scientia Professor at the University of New South Wales (UNSW) and director of the Australian Research Council (ARC) Centre for Green Manufacturing, Sahajwalla recently spoke to a collection of industry and community representatives at a forum on the circular economy in Gosford, NSW. “I think the whole point about the circular economy is that we know that if we collaborate and come to together, lots and lots of great ideas will come through. But, also, it is important, for us, to listen – understand what the community sentiments are; what local governments and businesses are struggling with,” said Sahajwalla.

It’s no secret that the amount of

waste and the cost of disposing it is a struggle. With Victorian recycler SKM going into administration, and then the appointed receivers, KordaMentha, receiving a $10 million loan from the state government, the scale of the waste crisis is unavoidable. Councils and recycling businesses point the finger at state government inaction, while state governments trumpet their circular economy policies as a way to reduce reliance on landfill.

Amid the blame game, manufacturing businesses are also major producers of waste, which is becoming more expensive to dispose of, and Sahajwalla notes that these businesses need to be heard from, along with those who are managing their waste, as part of the NSW Circular Economy network.

“That is part of the learning experience for us in terms of us being able to listen to stories of local producers, but also councils who have the waste. This is part and parcel of what the Circular Economy Network is all about: for us to be able to listen to all the stakeholders – the local governments, businesses, communities – and I think, then, if we all listen to The circular economy provides opportunities for manufacturers at multiple points in the production process.

20 OCTOBER 2019 Manufacturers’ Monthly

each other, the synergies are already starting to happen, which I think is just fantastic,” said Sahajwalla.

Another network outside of NSW that has brought together industrial waste users and producers is ASPIRE. Spun out of Data61 – the digital research arm of CSIRO – and supported by Swinburne University of Technology, the app functions as a marketplace for manufacturers to sell their waste products and purchase materials that would otherwise go to landfill and use them to develop new products.

Cameron McKenzie, the CEO of ASPIRE, has seen the service grow rapidly since its launch and seen it expand the number of materials which pass through its network.

“A lot of metals – scrap metal, saw dust, coffee beans, a lot of organics from manufacturing. We’ve just had a vegetable packaging company come on the platform, and they spend $7,000 a month sending their product to landfill and since being on ASPIRE they’ve halved that,” said McKenzie, who noted that the materials have gone to a zoo, a piggery, and a wood chip manufacturer. “At the end of the day it stays out of the ground, it doesn’t get incinerated, and that’s the perfect outcome for us.”

While ASPIRE and the NSW Circular Economy Network are more recent solution to Australia’s waste, other companies have been repurposing complex products since they arrived on the market. Sharon Selwood is the general manager of TES-AMM Australia and New Zealand, the local arm of global IT recycler TES. As these products become more complex, Selwood has seen greater opportunities to extract value from E-waste, IT devices that have reached the end of their life.

“We work with notebooks, desktops, printers, you name it. A lot of IT products now have a very high percentage of plastics and metals and

we are looking at how we can get value out of circuit boards and so forth.

We’ve got some great processes to be able to do that and put that back into the manufacturing,” said Selwood.

Selwood describes the extraction of high value materials such as copper from discarded IT products as “urban mining”, and TES works to reintroduce these elements into new products.

“The industry is looking at how they can look at the commodities that are within that product and put them back into the manufacturing process.”

For Sahajwalla, this is the core of what the circular economy means.

“It is to recognise the materials and understand that there is a significant value attached to these materials. So how do you then get the best value out of those materials, whether it is metals or e-waste or steel, how do you make sure that we get it to the end user?”

Reviewing recycling Recycling unusable products is not at the top of the waste hierarchy, and sits just above disposal, perhaps the last step in the circular economy cycle.

Instead, companies are beginning to think about where their product is going to end up before it is even produced. This thinking is coming under the umbrella term product stewardship, where the manufacturer of a product is responsible for where that product goes for its entire life. Such an attitude encourages a rethinking of the role of a manufacturer, according to McKenzie.

“If you create a product and you’re responsible for it at the end of life, you’re going to make sure that you can re-use it.”

In addition to recycling, TESAMM provides consultancy services for OEMs and other manufacturers to understand how they can ensure their products can become part of the circular economy, and Selwood is seeing a change begin to occur.

“Attitudes have definitely changing manmonthly.com.au

Issues&Insights for a lot of larger companies, but some of the smaller companies are not sure where to go or how they can do that.”

With increasing government investment and interest in the circular economy, McKenzie forecasts that there will be greater support coming for those companies that are beginning to adopt their own circular economy strategies.

“There’s a circular policy coming out in NSW, and what you’ll find is using an alternative approach or using different avenues to source your products is going to be either mandatory or voluntary.”

Being prepared for when this occurs, Sahajwalla is encouraging businesses to start thinking now about how they can re-evaluate their production processes.

“If you are a small business and you know that you have got a material, you can rather proactively look out for where there might be other businesses who could indeed benefit from the materials that you might consider waste,” said Sahajwalla, who noted that a shift in thinking around what the business makes could occur. “I am talking about the outputs from your business as being core products – there is the main product that you might make, but core products are really all the other materials that are coming out of your businesses which could potentially have value in the economy.”

McKenzie has seen this occur with the businesses that have come onto the ASPIRE platform.

“What happens, is there is a business on ASPIRE that has bought a lot of electrical goods, and with that the electrical products they get a lot of Styrofoam and a lot of carboard.

That business normally has thousands of cubic metres of Styrofoam, and they upload that on the platform and there’s another business that needs Styrofoam and they turn it into thermal bricks. Their construction products are a by-product of another person’s business.”

In the case of ASPIRE, the platform’s developers play an active role in connecting businesses spread throughout metropolitan and regional Victoria, where the network currently extends to, and introduces a financial manmonthly.com.au

incentive for the re-purposing of what would otherwise be waste products.

“Any by-product of a manufacturing process, be it metals, plastics, rubbers, or water, you can find that on ASPIRE. So far it’s diverted 45,000 tonnes from landfill per annum, and it saves a manufacturing business on average $3,000 to $4,000 per year.”

For Selwood, making the connection between waste materials and product manufacturers is not as simple, yet with greater interest in utilising alternative materials, there may be an opportunity for local manufacturers.

“The biggest thing that we have to think about in Australia is that we don’t have a huge amount of manufacturing, and so for myself as a recycler in Australia, we need to bring those commodities down to a level to get them to the manufacturers cost efficiently.”

The opportunity for local manufacturing to grow based on the resource streams present in recycled

points out Sahajwalla, citing the increased presence of copper on circuit boards when compared to when dug out of the earth.

“The amount of copper that you find on these boards is at least 10-20 times more than what you would have found in the copper ore.”

Rethinking what is waste and what is a resource opens up opportunities for value adding in the manufacturing sector that harness the cost of transportation that Selwood has confronted.

“Because we’re branding it as a waste and it is ending up in landfill, we are labelling it as a problem,” said Sahajwalla. “Well, it is actually not a problem if you stop and ask the question, ‘What does it actually contain?’ This is where fabulous solutions can come up. And imagine if these expensive metals could be put back into our economy. We could be producing locally a whole range of electronic devices and systems and sensors.”

Valuable materials can be found in E-waste and other products.

materials is one that Sahajwalla is keen to promote, and while still in its early stages, the use of valuable materials closer to their point of use is an emerging issue.

“Rare earths are an example of a material that is absolutely critical to our economy. Strategic metals like cobalt, these are all present in our electronic devices; we are going to need these materials to be able to deliver a digital future. It is more than just thinking about recycling.

And the other important point is to note that when you do recycle materials, you actually save energy,”

Product stewardship The next step to making this happen goes back to the concept of product stewardship, with manufacturers who have to deal with the product at the end of its life thinking about how to make it easier to extract the value embedded in the product.

“Some manufacturers are now looking at how a product is assembled to make it easier to de-manufacture,” said Selwood. “At the end of the day, to be able to re-manufacture or use some of those commodities they need to be separated, and if you just shred those products you’re not going to get

Thinking about where a product will end up at the of its life can reduce the cost of disposal and recycling. a clean commodity separation.”

McKenzie highlights how a change in business model and design thinking spurred by other factors, such as the increasing cost of energy, could stimulate the circular economy.

“You want to be able to design the product so it can be recycled again.

There’s no use in one cycle, it’s about trying to close the loop, so at the end of life it can simply be re-used or put back into another process. Once it gets to the end of their life, companies can take it back and just rebuild it back into their supply chain.”

With each step in the circular economy cycle requiring energy, , reuse is one step beyond increasing the amount of time each product can be used for before it become obsolete. As Selwood noted, increasing the lifetime of a product, or choosing a product with a longer lifespan, goes towards reducing the cost of each product on the broader environment.

“We are seeing some expansion of lifecycles of IT equipment, whereas before, everybody would get a new mobile phone every 12 months, that lifecycle is now extending. Part of that is because a lot of what’s being done is in the cloud and not necessarily on the phone, desktop, or notebook,” said Selwood With the NSW government releasing its 20-year waste strategy by the end of 2019, and Victoria following suit, manufacturers can play a larger role in closing the loop.

Manufacturers’ Monthly OCTOBER 2019 21

Manufacturing Strategies How continuous improvement saves lives Known for its biological manufacturing, the Australian Red Cross Blood Service has expanded beyond blood, and has adopted a well-known strategy to constantly improve their processes. Manufacturers Monthly finds out.

E

VERY week across Australia around 29,000 blood, plasma, and platelet donations are required to meet the needs of patients. Organs and tissues need to be matched for transplants, and premature babies need pasteurised breast milk to help them when they’re at their most vulnerable. An operation like this requires meticulous coordination of volunteer donors, blood collection, testing and manufacturing, and logistics, all to meet the everchanging needs of Australian patients.

This is where the Australian Red Cross Blood Service comes in.

The journey of blood is complex; with nearly 90 donor centres across the country, over half a million volunteer donors and almost 4,000 employees. Managing this supply chain involves a steady focus on ensuring the right product is available at the right time and that it’s safe for those receiving it, as Mitra Burns, national continuous improvement manager at the Blood Service explains.

“We’re very much supply-anddemand focussed,” said Burns.

“We identify what products we need based on demand from hospitals, and what we already have on hand. Once this is established, our teams focused on donor recruitment ensure we have the right donors coming in at the right times.

“In some cases, patients may need blood that’s specifically matched beyond the eight main blood groups, and this is where our medical and scientific experts coordinate to make sure we can meet the increasingly unique needs of all Australian patients.”

Once at a donor centre, donors will be asked to complete an eligibility questionnaire and 22 OCTOBER 2019 Manufacturers’ Monthly

complete a donation assessment to ensure giving blood is safe, not only for them, but also for the patient receiving their blood.

“The process of screening donors is essential in ensuring the safety and quality of the products we supply,” said Burns.

Before blood or a blood product can be given to a patient, it must first be processed at one of four processing centres located in Brisbane, Sydney, Melbourne, and Perth. Here the donations are separated into their different components, tested, and blood typed, before being released and sent to hospitals across the country.

While complex, this cohesive system is based on continual changes in demand for specialised and sometimes precise products. When demand in the health sector shifts, the supply process must also adapt to accommodate.

“For the first time this year, we are now collecting more plasma

“We, like most organisations, could see we had room for improvement. Our leadership team saw these opportunities and knew CI was the right strategy to help us make the top quartile in international benchmarking,” said Burns.

While the Blood Service is unique in the products it manufactures, it is similar to many other manufacturing businesses requiring quality and reliability in their process through well designed systems. With this in mind, Burns expressed a sentiment common to other production managers.

“Despite planning meticulously, we know things don’t always work perfectly. Part of our system is ensuring if something doesn’t go to plan, not only is it captured and resolved, but it’s always reviewed to ensure it’s not an ongoing problem.

“There is always room for improvement. Documentation and review is a key part of this. If you

In some cases patients may need blood that’s specifically matched beyond the eight main blood groups, and this is where our medical and scientific experts coordinate to make sure we can meet the increasingly unique needs of all Australian patients. donations than blood, which brings with it more change; change to our capacity and to our processes,” said Burns.

Knowing that the shift from whole blood to plasma was about to occur, in 2013 the Blood Service implemented a Continuous Improvement (CI) strategy to ensure the service remained at its peak.

don’t have this, if you don’t know where your areas for improvement are, then you cannot improve.”

This review process is an essential part of CI, with the Blood Service evaluating its progress, in addition to looking further afield for other developments.

“As part of our review we wanted to check the current status

Mitra Burns has been delivering Continuous Improvement strategies to keep the veins of the organisation flowing. of where Lean thinking was. We looked at what we were doing well, what our challenges were, but we also wanted to know what other similar organisations were doing, so we looked to the blood services in Canada and the UK to see what they were doing well, and what their challenges were too.”

As Burns highlighted, Lean manufacturing is a global network of companies and organisations and asking how others measured themselves could lead to improvements in the Blood Service.

After benchmarking internationally, the Blood Service’s next step was focussed on improving the individuals who worked within the organisation.

“Lean for us now is about empowering our people to continuously improve in their everyday roles, rather than waiting for a Lean practitioner to come and make the changes for them. A key part of this shift was the support of our leadership team in recognising our own people are the right people manmonthly.com.au

Manufacturing Strategies Lean for us now is about empowering our people to continuously improve in their everyday roles, rather than waiting for a Lean practitioner to come and make the changes for them. A key part of this shift was the support of our leadership team in recognising our own people are the right people to achieve great results. to achieve great results.”

Here, rather than requiring major disruption, what the CI Team highlighted was the inherent qualities of the existing workforce. This was introduced to the organisation through in-house training and workshops, a method that Burns described as, “I do, we do, you do”.

“I do, is that I’ll train you, so it’s a combination of classroom training and an example to work through.

We do, is that you and I partner together, and we do a number of projects to a stage where you’re competent and you can do it on your own. And you do, is the coaching and mentoring stage.”

To date, the organisation is already seeing results, and individuals within the organisation

are taking it upon themselves to improve the processes of blood collection and manufacturing.

“A key part of rolling this out across the Blood Service has been helping people realise it applies to all areas. It’s not limited to manufacturing; these opportunities for CI are everywhere. They’re in our call centre, in our donor centres, in our admin teams, in our labs and of course in our manufacturing areas,” said Burns.

“We’re helping our people change the way they look at processes and the work they do. We’re helping them think differently when it comes to finding solutions, and we’re developing and empowering them to keep making these continuous improvements. It’s a never-ending journey.”

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Manufacturers’ Monthly OCTOBER 2019 23

Automation The journey from start-up to global company has been supported by a closer partnership between manufacturers.

Collaboration key to a successful start-up RoboHelix’s flight from garage to global has been driven by a symbiotic partnership.

Manufacturers’ Monthly explains.

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HE journey of a start-up, from basement to IPO, has become the corporate myth of the 21st century. The break-neck trajectory is one that many seek to emulate, but few fully understand the trials and tribulations involved. Indeed, the hidden combination of luck, skill, and cunning needed to get such an enterprise off the ground in Australia can make any start-up success story seem apocryphal.

Before meeting the founder of flight-forming start-up RoboHelix, the company’s growth from garage to global company, appeared to have the same mythic qualities. The company had been able to automate the process of flight forming, discovering an eightaxis robotic solution to a dangerous and manual task. However, walking into the RoboHelix head office and prototyping facility in Macquarie Park, the path from the initial idea to finished product became very firm.

Arriving during the midst of the creation of a new model, and with a previous one on display, it became clear that the development of a product that had upended established methods of flight forming came down 24 OCTOBER 2019 Manufacturers’ Monthly

to a logical and considered process.

“Initially, when we did the minimum viable product (MVP), we wanted something within the allocated budget to demonstrate the technology,” recalled Hayel Smair, founder and CEO of RoboHelix.

“An unbranded company that had servomotors and electronics enabled us to demonstrate the technology. It was good, but it wasn’t optimal for what we wanted in the future. We always wanted to move to a well-known supplier, but obviously we were still starting off, so we implemented our own machine using technology at hand.”

The technology that RoboHelix required not only comprised the physical equipment to make the flights, but the software and human machine interface (HMI), which would simplify the flight-forming process.

With an aim to reduce batch flightforming time from hours to minutes, both the software and the hardware had to be able to quickly process the complex algorithms developed

by RoboHelix and produce a final product that was accurate.

To achieve this, Smair, along with

COO, David Gardner and senior engineer Budhaditya (Budha) Majumdar, defined what they needed from their primary supplier.

“There were three factors that we were interested in,” said Smair. “Performance to meet our expectations, pricing, and service.

To begin with, Budha and I listed what the machine has to do and we gave it to a number of suppliers that were very eager to take it on board. Some of them had to do tests and rigs to see what was achievable, some of them could do it, and some of them couldn’t.”

With these findings, there were two approaches open to the team at this critical juncture of turning their proven product into a commercially viable venture. One was to have servomotors imported from a company overseas and then have a different local integrator put together the system – the other was to find a single global and reliable supplier to support the entire electronic and control process.

Ultimately, Smair’s initial idea when developing the business pushed the company towards the

second option.

“My vision was to have a single supplier who we could trust and work with,” said Smair.

This supplier was industrial automation manufacturer Beckhoff Automation. By choosing to work with one company, RoboHelix were able to gain much more than simply a product, said Majumdar.

“We started from servomotor AM8072 and then got an approximate list of products that would help us.

Then Beckhoff suggested that if we get a complete solution from them, we would have much better support, which we did.”

In taking that pivotal step from nascent start up with a tested product to a fully commercial enterprise, having one supplier simplified the company at this critical juncture, according to Gardner.

“It’s to our advantage, we have one system and when you put an order in everything comes in together. If there’s any problems we can contact Beckhoff directly.”

If the premise of RoboHelix’s technology was significant, its implementation would be nothing manmonthly.com.au

Automation short of revolutionary for its field. As Smair highlighted, “we removed the technical element of flight forming and provided a solution that enables anyone to form superior flights without any experience”.

This is a major shift from the current method and requirements for flight forming. According to Gardner, manufacturers currently require operators with 10 to 20 years of experience to effectively and efficiently use traditional flight-forming machines. With an integrated product combining software and hardware, RoboHelix has been able to extend the original system, rendering all traditional machines obsolete and added further job functionality to the manufacturing work flow.

“We’ve extended the HMI. We’ve gone another step further and said we want to provide our clients the useability of the operator being able to see both left-hand and right-hand flights, or being able to have quick to access buttons that reduce the production rates down even further,” said Gardner.

Working closely with a single supplier, in this case Beckhoff, has allowed RoboHelix to adopt technologies as soon as they are ready to come onto market.

These kinds of advancements go beyond a focus on functionality.

As Gardner pointed out, as a company that is self-consciously pushing the potential of its technology forward, having an

advanced support system that they can point to is key.

“When you’re leading the way in your field, you want to see players that are also pushing their boundaries in technology.

You see this in the whole Internet of Things (IoT) expansion, you see this in the boom of the Apple iPhone – every time there’s a push in the industry it’s because someone’s taken a risk, or because someone’s tried to do something that’s not necessarily been done before,” said Gardner.

For RoboHelix to do that, “you need to immerse yourself around companies and technology that will help drive innovation”.

When speaking with potential clients and customers, the innovation that RoboHelix champions cannot only exist in the idea and the product, but has to be integrated into the system as a whole.

As Gardner highlights, the choice to work with a single supplier who aligns with their vision has translated into ensuring that RoboHelix is able to integrate the latest technology into their designs, something that clients appreciate and value.

“A lot of international customers that we deal with, when we introduce them to our systems, and tell them that we’ve got a Beckhoff system, they trust us because they know that Beckhoff are at the top of their game,” said Smair.

For Beckhoff the relationship

Central to the success of RoboHelix has been the partnership between the company and Beckhoff. Left to right, David Gardner, Hans Beckhoff (managing director of Beckhoff), Hayel Smair, Nick Psahoulias.

manmonthly.com.au

that has developed between the two companies is more than a simple transaction. As Nick Psahoulias, managing director of Beckhoff Automation Australia, describes, having a start-up that was committed to developing a product in partnership with Beckhoff was particularly unique and led to unexpected synergies.

“Dealing with RoboHelix, it was refreshing because we had a lot of customers coming to us traditionally, saying, ‘Here’s a system we’ve already designed, how can you fit into our design?’ as opposed to when RoboHelix came to us, they said, ‘Here’s our idea, how can you help us bring this to fruition?’ It was a completely different mindset.

They entrusted our experience to make their ideas come to life.

“The ethos of Beckhoff isn’t, ‘Here’s our products just go and use them’, it’s more of a case of working with customers, asking, ‘What are you trying to achieve, and how can we best fill that need of yours?’”

With the finished product now finalised, and with RoboHelix fielding orders from Germany, the US, and the Netherlands, the business has grown from not only producing a machine but providing a service.

“At the end of the day we’re not selling customers a machine or a software, we’re selling the users a business,” said Smair.

“We provide the tools for any person to start producing these flights, whether it be the end user or part of a system or subsystem on their machinery.”

With Beckhoff as a partner, RoboHelix has grown from its origins in Smair’s garage, to a successful global business. All in all, in demystifying the startup journey, it is partnerships, rather than individuals, that have enabled this to happen.

“We’re not talking about just the flight-forming machine,” said Smair. “We’re talking about the array of products we’re soon going to be implementing with Beckhoff as a supply partner.”

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Manufacturers’ Monthly OCTOBER 2019 25

5G 5G infrastructure enables new and radical applications The new Fifth-Generation (5G) wireless infrastructure provides a platform for improved and innovative applications, writes Tim Jones for Mouser Electronics.

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OT only will the new FifthGeneration (5G) wireless infrastructure open the door to new applications, but it will greatly improve the applications that exist today for 4G and earlier wireless generations. With the 5G network’s enhanced performance, communication will be faster, with improved interactivity resulting from a significantly lower latency. That’s great for the consumer experience as well as for machine-to-machine (M2M) communication.

5G will include three classes of services, all delivered through a single mobile network: • Enhanced mobile broadband (eMBB). Content and service access by humans.

• Massive machine-type communications (mMTC). Data exchange between low-power devices with relaxed levels of service.

• Ultra-reliable low-latency communications (URLLC). Data exchange between devices with strict levels of service.

This article explores how 5G enhancements will improve existing applications and create a platform for even more innovative applications.

5G wireless and applications 5G communication is a means to an end (it’s about communication between devices), but it’s a true enabling technology that improves existing applications. Let’s explore what the 5G wireless network means for both existing applications and emerging ones.

Internet enablement The earliest and largest implementation of the 5G network will focus on bringing Internet connectivity to consumer smartphones and tablets.

With the speed and low latency of 5G wireless connectivity, consumers will also see 5G connectivity as the conduit to Internet access not just for consumer devices but also for homes (fixed wireless access). Technology such as beamforming (which can focus a signal as a beam that points toward a user rather than broadcasting in all directions) will improve the integrity of the user’s signal while minimising signal interference to other users.

Virtual and augmented reality In virtual reality (VR), a headset constructs a synthetic (computergenerated) world with which a user

can interact. The VR headset includes real-time head tracking that enables the view of the world to change based on the user’s control. Augmented reality (AR) does not construct a synthetic world; instead, it overlays synthetic objects onto a user’s view of the real world using either a headset or smartphone.

Both technologies will benefit from the advanced capacity of a 5G network: 5G speed will support construction and transmission of a synthetic world from a remote cloud (known as cloud rendering) to a VR device. 5G low-latency communication will permit a quick response to head movements, rendering only what’s necessary for a user’s current view of the world.

The Internet of Things The Internet of Things (IoT) refers to the Internet connectivity of everyday objects (e.g., dishwashers, doorbells).

The speed and capacity available with 5G will lead to an explosion of new IoT devices and services, but not until the cost is reduced. In part, this expansion will be the outcome of the 5G network’s ability to connect to a large number of devices in a small

area (i.e., a million endpoint devices in a square meter area). One way that 5G may support communication to a large number of devices in an area is through what’s called multiple-input, multiple-output (MIMO). MIMO can involve increasing the number of antennas for a base station to widen its network capacity; it can also refer to sending and receiving more than one data signal over the same radio channel using multipath propagation.

In either case, it means greater capacity to communicate with more devices without the requirement of additional radio spectrum.

Autonomous vehicles Autonomous vehicles (AVs) are automobiles that can navigate without human input—for example, a selfdriving car. AVs work today without the 5G wireless infrastructure, but with faster, lower latency 5G communication, new services will become possible for the emerging AV technology. Such improved communication could offer a range of services for a driver or passengers, including entertainment (e.g., video, music) and broadband access. A driver could benefit from automatically

5G will enable a range of applications that are only just being developed.

26 OCTOBER 2019 Manufacturers’ Monthly

manmonthly.com.au

5G adjusted navigation and routing through integrated accident or severe traffic updates or benefit from vehicleto-vehicle (V2V) communication to optimize traffic flow, such as through creating a localised coordination of lane changes between vehicles.

Surveillance and monitoring Surveillance, or video- and audiobased monitoring of activities or behaviour, will experience significant changes with 5G technology. Most surveillance solutions today rely on Internet Protocol (IP) networks, which are connected through Wi-Fi to an Internet service provider (ISP) that can offer limited bandwidth.

Many of these solutions permit two-way communication, but this communication can be hindered by IP networks that are asymmetric (i.e., that have high download speeds but slower upload speeds).

The available bandwidth that a 5G network will offer will enable smooth streaming of higher-resolution video, such as 1080p high-definition (HD) video, which third-generation (3G) or fourth-generation (4G) wireless networks cannot easily support.

The speed of 5G communication will support real-time face detection and recognition in the cloud. As a camera grabs high-resolution (hires) frames of video, it will be able to upload each frame into the cloud for processing. This process can be optimised by performing face detection at the camera and then distributing the detected faces (the framed regions for each given face) to independent servers in the cloud. This step will facilitate better use of the 5G infrastructure because the images sent to the cloud will be smaller and can then be processed as they are received, parallelising the complex recognition process.

Smart Cities A smart city is one that deploys various types of IoT sensors (representing meters, controllers, lighting, displays, etc.) and uses the resulting data in a way to manage a city and its resources efficiently – including transportation, power, water, waste, crime, and pretty much any area of a city that can produce data. manmonthly.com.au

For example, as waste vehicles collect recyclables, they can calculate mass and predict the flow of trash to waste facilities and determine the facilities’ ability to process the waste.

The idea of a smart city has been around for more than a decade, but what has been missing is a way to efficiently communicate with the mass of sensors that exist within a city: For example, where sensors distributed around an area can detect flooding (including depth and flow).

5G technology provides the platform through which all these sensors can coexist and communicate between themselves and centralised cloud infrastructures. Only a 5G wireless network can support the scale of data that IoT sensors produce and amass at the scale of a city, with the cloud providing the scalable processing necessary to manage this elastic set of processing demands.

New entertainment functions The application of a 4G network commonly occurs in delivering content to endpoints such as phones or tablets: Consider users watching videos on their devices. Some types of data delivered in real time, such as sporting events or concerts, cause issues.

Even if many users are streaming the same content, the network delivers it independently to each user. Multimedia Broadcast/Multicast Service (MBMS) enables users to share the content delivered through one stream, reducing the bandwidth that the data uses. This functionality has been extended with MBMS on demand (MOOD), which allows dynamic switching from a unicast to a multicast delivery when the number of devices accessing the same content exceeds some defined threshold. With the growth of content that will travel through the 5G network, MOOD can transform digital television.

Cloud-based gaming Cloud-based gaming (also called gaming on demand) enables users to play a game the cloud hosts on a peer device (such as a smartphone, computer, or smart TV), where the game video-streams to the peer device in much the same way other videos stream. The recently

announced cloud-gaming platform developed by Google – called Stadia – could be a significant recipient of 5G capabilities. The platform pushes the high-level computation of a game and video rendering to the cloud using a peer device, such as a tablet, streaming the game video and taking user input for game control. 5G bandwidth and low latency make it ideal for gaming in the cloud.

Cloud-based storage Another interesting application of this new, fast 5G conduit is the so-called Storage as a Service, which extends the storage capabilities of a device by employing elastic storage in a cloud infrastructure. Equipping a device with cloud-based storage makes your data secure, not tied to a given device.

The result is data sharing between devices as well as an increase of reliability and availability of the data through cloud-based data protection. It also opens availability to a user’s full

library of content, which can otherwise be limited by the storage capability of an end device. A 5G network offers the bandwidth and latency to empower this application.

A catalyst for new experiences As technology evolves, it eventually reaches the limits of what’s possible.

Product developers then attempt to work around the limitations to fit their features into the available technology. The new 5G wireless infrastructure provides the platform and technological leap to extend communication limits for a new frontier of product offerings. Whether the limitations result from bandwidth, latency, or density, the 5G network represents a catalyst for new products and new experiences for consumers.

5G technology also provides a new fabric for mixed computing environments such as the IoT, where devices continue to rely on cloudbased infrastructures.

5G: What is the current potential for Australian businesses?

The roll-out of 5G across Australia is an opportunity for companies to adopt the technology ahead of their competition. However, to fully take advantage of 5G, particularly for Industrial Internet of Things (IIoT) applications, electronic components will need to be be part of the solution.

Mouser Electronics, a global manufacturer and distributor of electronic components, distributes components for 5G applications.

“For the radio frequency (RF) front end of 5G, we have Qorvo who has already shipped over 100M devices for 5G infrastructure, analog devices, NXP, and TI. In addition, Silicon Labs provides many of the timing products needed to bridge 4G and 5G technology and Intel has the latest datacenter products needed to process the vast amount of data that 5G will generate.

Finally, Mouser is the leading manufacturers of the millimetre wave (mmWave) connectors required by the new frequency bands associated with 5G,” said a Mouser spokesperson.

The use of 5G within industrial applications can allow communication at higher speeds and larger volumes. With 5G in Australia only in the initial stages, early adopters will be partly future proofing their systems for a future of greater connectivity, as the Mouser spokesperson highlighted.

“Massive machine type communication (mMTC) is designed for data exchange between low power devices with relaxed levels of service. Ultra reliable low-latency communication (URLLC) is designed for data exchange with strict levels of service. This will include real time systems and advanced robotics, both of which will be part of the future of IIoT.” Manufacturers can now start thinking about how they will incorporate 5G. This not only means using 5G in their own processes, but incorporating 5G operability in the products they manufacture.

Manufacturers’ Monthly OCTOBER 2019 27

Skills &Training Mental health at work – Is your business in the right head space?

Addressing issues of mental health in the workplace require an understanding of the causes and symptoms of illness. Ai Group explains why employers must account for the mental wellbeing of their workforce.

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HERE is little doubt that mental health has been an emerging issue for Australian workplaces for some time. In 2009, it was claimed mental illness is to the 21st century what physical industrial diseases like silicosis were to the 19th and early 20th centuries. In fact, by 2020, the World Health Organisation (WHO) predicts that depression, one form of mental illness, will become the second most important cause of disability in the world.

Given that poor psychological health inhibits workers’ ability to use their knowledge and skills at work and that those with poor psychological health have more absence and are less productive, the lack of attention to such issues creates a burden both for business and for society, and potentially causes harm to workers and their families.

At a compliance level, each state’s workplace health and safety (WHS) legislation obliges employers, so far as is reasonably practicable, to provide a safe and healthy workplace.

This means that action must be taken to prevent or lessen potential risks to the health and safety of affected employees and their colleagues – including the affected person’s own mental wellbeing.

In addition, once a mental health condition exists, various federal and state discrimination laws create a general prohibition on discrimination against an employee because of a disability, which includes mental illness. The Fair Work Act 2009 makes it unlawful to take “adverse action” against an employee due to mental illness and also provides that employees with a disability have a right to request a “change in working arrangements”, which the employer 28 OCTOBER 2019 Manufacturers’ Monthly

The many degrees of mental wellbeing require a tailored approach to employee health.

can only refuse on reasonable business grounds.

While historically the focus of WHS has been on harm minimisation, organisations are now moving beyond this towards the promotion of protective factors and the development of positive cultures conducive to well-being. While some businesses simply say, “It’s the right thing to do, so we must do it”, others consider the business case in deciding whether mental health is something that it should be factoring into its HR and WHS policies.

Research indicates that the costs of mental illness in the workplace are great and that there is much employers can do to reduce costs

and improve the well-being of their employees. Ai Group saw the emerging need for a broader understanding around mental health in the workplace and as a result developed its Mental Health & Awareness in the Workplace program.

This program discusses proven strategies to help organisations identify and manage workplace mental health issues.

How is mental health or ill-health different to stress?

The British Health and Safety Executive defines stress as “the adverse reaction people have to excessive pressures or other types of demands placed on them”. It points out, however, that it can be

difficult to distinguish when stress turns into a mental health problem and when existing mental health problems become exaggerated or exacerbated by stress at work. Many of the symptoms are similar – e.g. sleeplessness, appetite changes, increased use of alcohol etc. – but the differentiating factors are the severity and duration of the symptoms and the resulting impact on day-to-day life.

From a management perspective, nothing is straightforward. Just as stress may arise from high work demands it can also result from too few demands leading to boredom, feelings of being under-valued or being under-stimulated. Also, what manmonthly.com.au

Skills&Training one person perceives as work pressure may result in another experiencing stress and a third person reacting with a mental health problem.

A person’s ability to cope with issues at work may vary depending upon: • their personality and coping mechanisms at a particular point in time; • their beliefs (note the concept of the “moral injury” which occurs when actions are perceived to be against an individual’s ethical, religious, or cultural beliefs and result in mental distress, depression, and possibly even suicide or suicidal thoughts); • what else is happening in their life; and • what has occurred previously (e.g. in the case of those suffering from post-traumatic stress disorder).

Given the above, managers will often have insufficient information to prevent stress reactions so need to be constantly vigilant. This is not only to ensure a workplace conducive to productive work and working relationships but to meet a duty of care to prevent psychological injury in the workplace and to manage and make appropriate adjustments for employees suffering a degree of mental ill-health.

Prolonged exposure to mental stress in the workplace – whether as a result of high work load, exposure

to violence, bullying and harassment, trauma, and other factors – can lead to mental illnesses, such as depression, post-traumatic stress disorder (PTSD), and anxiety, as well as physical conditions, such as increased blood pressure, migraines, and sleep disorders.

While there may be a fine line between stress and mental health disorders, the symptoms of mental and behavioural disorders may vary substantially but will generally be characterised by some combination of abnormal thoughts, emotions, behaviour, and relationships with others.

People with mental disorders may feel frustration, anger, loneliness, embarrassment, exhaustion, fear, desperation, and hopelessness but the vast majority will not be violent.

Mental health rarely conforms to stereotypes that people might remember from One Flew Over the Cuckoo’s Nest, and only about one in a hundred people experience the more severe forms of mental illness.

Most mental health problems are short-lived, especially if dealt with early, and many people with mental health issues will still be able to be productive at work. Some, however, may need time away from work or other accommodations made, such as alteration of duties or hours of work on a short-term or long-term basis.

BeyondBlue reports that research

Mental health issues can affect employees in many different ways.

has shown a correlation between high levels of good mental health and increased learning, creativity, productivity, more pro-social behaviour and positive social relationships, and with improved physical health. On the other hand, mental health conditions can cause distress, impact on day-to-day functioning and relationships, and are associated with poor physical health and premature death from suicide.

However, the issue is not a simple black and white one. There will be degrees of mental health and degrees of mental illness. In the workplace, the aim is to have

as many people as possible who experience positive mental health and supported by workplace practices and culture that adds value to mental health rather than detracting from it. This can involve issues including job design, job fit, culture, adequate remuneration, working hours, team cohesion, supervisory and management practices, performance pressures, bullying, and discrimination.

Ai Group offers onsite training in Mental Health and Awareness in the Workplace. Ai Group’s online HR Resource Centre is a great reference centre for articles, templates, and documents on HR issues.

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Manufacturers’ Monthly OCTOBER 2019 29

Data Logging Data logging from Atlas Copco can optimise compressed air system performance With Atlas Copco’s data logging service, significant energy savings can be identified and achieved in compressed air systems. Manufacturers’ Monthly reports.

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OMPRESSED air is one of the primary utilities required by the manufacturing sector. Whether used for air tools or pneumatic controls, compressed air is a staple for industrial facilities.

Within the compressed air system itself, energy comprises 73 per cent of the total cost of the system over a 10-year lifecycle. With energy costs increasing, and more manufacturers engaging with the cost of energy as a major business expense, understanding and tracking energy use by air compressors can lead to significant savings. As a significant part of the business, air compressors can use a significant amount of energy, comprising up to 10 per cent of total industrial electricity use in Australia, according to a report from Sustainability Victoria.

Atlas Copco, the number one global manufacturer of compressed air systems, knows the issue of energy and compressed air from first-hand experience. As energy prices rise in the south eastern states of Australia, the company has seen greater demand for its data logging service, which allows a user to track and simulate energy use in a compressed air system.

The free service is offered by Atlas Copco and carried out by their sales engineers. As Delfin Perozo, product manager at Atlas Copco Australia, explained, the system is flexible for all manufacturing businesses and is designed to work in the best interest of the customer.

“We can do the data logging for any compressor in the market, independently of the size and brand of the compressor. The idea of data logging is to get a full picture of how the compressed air system of the customer is behaving, how to improve that system, and how to deliver a system that is going to be more efficient and reliable to the customer.”

The non-invasive process involves 30 OCTOBER 2019 Manufacturers’ Monthly

Part of Atlas Copco’s approach is to become advisors to their customers, rather than just salespeople. the installation of the data logging mechanism onto the existing air compressor for a period usually of seven to 10 days. A consultation can be booked via the Data Logging link in the heading of Atlas Copco’s website. The service is then carried out by an Atlas Copco sales engineer or authorised distributor with the assistance of a qualified electrician.

Recording the data for this length of time allows for a full picture of the compressor’s operation.

“A good range of data will take into consideration all the maximum loads of the customer, all the days that they work, whether two or three shifts, and even the days that they are not working,” said Perozo.

“Depending on the data collected for each factory, we have developed a simulation system called AIRchitect that translates all that data to flow profiles and gives a comprehensive picture of your system.”

As companies expand and air compressor systems age, the initial air compressor system may no longer be operating at its optimum efficiency.

Before making the investment in a

new system, Perozo highlights that data logging can inform a business as to where greater load requirements are needed, and whether this can be achieved through efficiencies, rather than capital outlays.

“It’s just analysing the compressed air system and saying, ‘You can do this but with less power’.”

With the intelligence from a data logging, companies can then look into energy efficiency incentive schemes.

Once the data from the data logger has been collated, Atlas Copco’s sales engineers or authorised distributors provide a consultancy service for businesses. Whether they be existing customers or not, the consultants demonstrate where efficiencies can be found, and what difference a new compressed air system may make.

Using the flow profile generated

by Airchitect based on the data loggers, peaks and troughs in activity can be found, and a more efficient system can be simulated. With this information, energy savings on average of 50 per cent can be estimated, and so far, according to Perozo, those estimated savings have

been conservative when compared with the final measured outcomes.

“Atlas Copco offers a certain amount of energy savings and, after we deliver and install the new machine and we do the verification data logging, we usually find we are delivering more than what we are expecting,” said Perozo.

After conducting the initial data logging, the sales engineer of Atlas Copco walks the customer through the reports generated by AIRchitect. With an extensive database of compressors, and in conjunction with the attention of the sales engineers, Atlas Copco delivers reports on flow and energy consumption.

“You can have the best data in the world, but if you don’t have the right set up based on your understanding of the system, you won’t have the right outcome,” said Perozo.

By having multiple days of data, Atlas Copco can assist the client to find operational efficiencies, whether that is in running certain processes at different times or identifying when a compressor is running but doesn’t need to be.

“The first report tells the customer: this is your compressed air system, this is the way it is behaving, and this is your flow profile based on the calculations of the system. We also produce a comprehensive report with every single day of the calculated flow of the system just to show and discuss with them,” said Perozo.

“We try to learn with the customer on every case,” said Perozo.

“Sometimes, for example, if a factory is not running during the weekend and the compressors are running, those are compressor leaks. And the customer realises ‘I need to do something with those leaks because I am losing energy with those leaks.’”

The second step is to propose a more efficient system based in new generation compressors. And manmonthly.com.au

Data Logging AIRchitect produces the comparison report against the original system including the estimated energy savings delivered for the new proposed compressors’ configuration.

Once operational efficiencies have been exhausted, the next step is to determine whether the system itself can be improved. Perozo highlights that from the perspective of a compressed air manufacturer, there are significant benefits to be found in the more recent system.

“Every four to eight years you will see a big jump in efficiency in our compressor ranges, 10-15 per cent more efficient than the previous generation. Sometimes it’s just saying to the customer, ‘You have a 20-yearold compressor system, and you use this amount of kilowatts.’ Simply upgrading your machine to a new generation machine, you’re going to be using 25 per cent less power.”

Taking into account a business’s needs for compressed air, another solution to more closely match input and output of a compressed

air system is the installation of a variable flow system.

“This depends on the flow profile,” said Perozo. “But comparing the typical profile of a fixed speed machine against a variable speed machine, the savings are going to be 30 to 35 per cent. If you add that to a new technology, you get a jump of 15 to 20 per cent, but for the top of the line we can deliver for the customer up to 50 per cent.”

With the data acquired through the data logging process, savings can be found in other areas too.

“A lot of companies are setting the service of the compressors based on the time,” said Perozo. “Every six months, they recommend changing the oils and the filters, every 12 months you need to do this and that. With this comprehensive data logging, we know the running hours and we can give a more accurate picture. For example, we can tell them, ‘You don’t need this oil change every six months, you need it at 10 months.’”

These services, provided by Atlas

Atlas Copco’s software platform allows businesses to track the efficiency of their compressed air systems.

Copco, are indicative of the approach that the company takes to sales and their clients. By offering a service such as data logging for free, Atlas Copco provides a utility and an advantage.

“This is a way the sales engineers and our authorised distributors

become advisors, more than just selling boxes,” said Perozo.

With energy prices an increasingly significant cost for manufacturers, the potential to find significant savings in compressed air systems is a valuable service for all enterprises.

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Manufacturers’ Monthly OCTOBER 2019 31

National Manufacturing Summit Preparing the workforce for the skills of the future During a day of robust discussion, delegates, speakers, and panellists came to grips with the skills crisis confronting the Australian manufacturing industry, and what can be done to overcome this. Manufacturers’ Monthly reports.

A key concern was to what extent the TAFE and VET sector needed reform.

32 OCTOBER 2019 Manufacturers’ Monthly

It took a day of panels, questions, and side-line conversations to come to an answer. Potential solutions included closer collaboration between industry and training sectors, restructuring qualification frameworks, and allowing more space for diverse thinking.

Establishing the context for where the sector currently stands, Justine Evesson, managing partner at Employment Research Australia, determined that there is a national

consensus that the current system for vocational education and training is broken.

With TAFE “more or less invisible in national policy”, according to Evesson, the extraction of public money from the TAFE system to the private sector has led to low skill training delivery, without TAFE as a national anchor institution, setting the standard for the rest of the VET sector.

In addition, Evesson highlighted

that TAFE’s deep and rigid bureaucracies, combined with a lack of funding, has limited its ability to engage with industry when developing courses and curricula.

More broadly, Evesson outlined that Australia is not alone in confronting a skills crisis with a dearth of 21st century skills. These skills include problem solving, collaboration, team work and creativity. While these skills are undoubtedly needed, a focus on

All images credit: Nick Harrison

S

ETTING out the question that would go on to frame the skills discussion at the National Manufacturing Summit, Gayle Tierney, Victorian Minister for Training and Skills, asked, “How do we ensure Australia’s economy continues to compete on the world stage, how do we meet employer demand for highly skilled workers, and how do we identify what skills we need, and how do we ensure Australians have the skills for the future?”

manmonthly.com.au

National Manufacturing Summit these foundational skills cannot come at the expense of expertise in a particular area, noted Evesson, pithily summarising that “there’s not much use in collaborating if you have nothing to contribute”.

Matching these comments, the newly appointed Shadow Minister for Employment and Industry, Science, and Small and Family Business, Brendan O’Connor, highlighted that from the federal Opposition’s perspective, change is required.

“TAFE and the VET system does need reform,” acknowledged O’Connor.

O’Connor characterised the system as one that is in decline, while noting that the skills delivered by TAFE, those that equip us to keep learning throughout our lifetime, are more in need than ever. O’Connor noted that it is a shared responsibility for industry and government to ensure that the workforce is prepared for the future.

“Governments and industry will need to consult and collaborate intensively to secure our place in advanced manufacturing,” said O’Connor, “before the divide between those countries investing in skills become too great and we get left behind.”

At the other end of the tertiary educational spectrum was Michelle Gee, professor of aerospace engineering and director of the Lawrence Wackett Centre at RMIT University. Having previously occupied the role of digital manufacturing lead at Boeing Aerostructure Australia, Gee could see across the divide between academia and industry, but directly spoke to university partners, telling universities to “focus on the customer needs and let the customer drive your work”.

With universities incentivised to produce intellectual property (IP) by the demand to publish in academic journals, yet without any need to commercialise the product, this hoarding of IP has limited the ability of industry to adopt university expertise as an alternative to in house research and development (R&D). For this to occur, universities and industry need to be interconnected at all stages of the process, according to Gee. manmonthly.com.au

Putting this into practice fell to industry, and as Chris Brugeaud, chief executive officer of SSS Manufacturing, a structural steel fabricator, highlighted, the technical capabilities of Industry 4.0 are available now, but a lack of a skilled workforce has limited the implementation of these technologies.

However, the structure of Australian industry is also placing a strain on the ability of Australian manufacturing to support skills

$14 million training framework as one example of how this could work, another was the success of free TAFE with 25,000 students enrolled as of June 2019, six months since the beginning of the program.

At a smaller level, Megan Lilly, head of workforce development at Australian Industry Group (Ai Group), said there was room to expand micro-qualifications – short courses for employees to upskill while in employment. Noting that

and that rather, the high levels of automation in 60 per cent of the business will allow for efficiencies to hire more people.

As roles change in manufacturing and industrial businesses, new skills and competencies come from the new people that fill these roles.

As Sandra Taylor, manufacturing manager at Twinings, pointed out, without a need to conduct heavy lifting in the production process more people, whether they be younger,

this should not come at the expense of foundational training and qualifications, Lilly noted that from Ai Group’s research, the issue in Australia is of a skills gap between what is present and what is needed, rather than an overall skills shortage.

With Lilly noting that 50 per cent of all jobs in the future will shift in their composition by 50 per cent, workplaces will have to become mini classrooms, with the participation of industry, so that upskilling can occur.

As automation occurs across the workforce, there is potential for new technologies to expand the workforce, rather than shrink the number of employees. Brugeaud, who also leads industrial automation business, IR4, highlighted that 100 per cent of a business will never be automated

older or of a different gender, can become involved in manufacturing.

With this expanded set of employees, different ways of thinking can emerge, as Kirsty Bateman, director of engineering capability at BAE Systems Australia noted.

“Diverse thinking comes from diverse backgrounds and diverse experiences,” said Bateman, and demonstrated how this diversity will lead to new ways of working.

However, with even representatives of industry noting how hard it is to predict what will occur in the future with the pace of change so rapid, developing a highly responsive training package may continue to be elusive, and a combination of all these suggestions will be required.

Attendees discussed how to ready the workforce for changing roles of the future.

development. As Adrian Boden, executive director of the South East Melbourne Manufacturing Alliance (SEMMA), pointed out, Australia is unique among the development world in the composition of the industrial sector, with 90 per cent of companies employing less than 30 people.

With all these factors in mind, the array of speakers broached a number of responses to the skills crisis.

Partnerships was a topic discussed by almost all in attendance, with it being key to Tierney’s vision for the sector.

“We support developing partnerships between training providers and industry to make sure that the Victorian system has relevant, accessible, training,” said Tierney.

Pointing to the state government’s

Manufacturers’ Monthly OCTOBER 2019 33

National Manufacturing Summit More than luck: making the most of our lithium endowment Coming to the stage for the last session of any summit is a hard task, and after

“There are some hopeful signs out

Lithium contains the potential for Australia to create an advanced manufacturing industry said Jim Stanford.

there – green shoots if you like – but you can’t assume that that’s going to translate into a well-rounded, fully

a packed day of speeches and panels at

beneficial industry.”

the National Manufacturing Summit,

To coalesce these disparate initial

the job of Jim Stanford, director of

points into an integrated industry,

the Centre for Future Work at the

Stanford argued that Australia

Australia Institute, was no easier.

should take greater advantage of

His task? Wake Australia up to the

its circumstances. First, with the

potential of lithium.

high transport costs involved in the

Taking Donald Horne’s well-worn

movement of large batteries, energy

descriptor of Australia as “the lucky

providers will be interested in local

country”, Stanford reminded the

solutions. Second, with the rapid

audience that Horne had meant

uptake of rooftop solar and its variable

it negatively, that Australia was

energy generation patterns, there is

prosperous because of its luck, not

a growing market for utility battery

because of any enterprise. Stanford

storage. Finally, the bones of Australia’s

implored the audience to turn

automotive manufacturing industry

around this trend in Australia’s

remain, and could be transitioned to

history. With lithium in abundance,

produce electric vehicles.

and the market for its applications

However, with this in mind Stanford

expanding, Stanford encouraged

noted that hurdles still remain, with

those listening to not rely once again

Lithium is now used for batteries

worth around US$100,000 ($148,000).

the biggest being the complacency of

on luck.

for home appliances, vehicles, and

To take the next step, and calculate

national policy makers.

increasingly, utility energy storage.

how much the cars are worth, the

“They’ve forgotten how to build

With the growing awareness of

value increases by another factor

world-class industries” said Stanford.

“We are not remotely making the most of our lucky endowment.”

the environmental benefits of

of 10. This adds up to over a million

“They’ve coasted for too long on

history of producing raw materials

Stanford pointed to Australia’s

electrification of transportation,

dollars’ worth of vehicles based on

the easy money from extracting

such as wool, lumber, coal, and, more

as well as the increasing amount

one tonne of lithium. The raw lithium,

resources. We need to get our hands

recently, gas, and then exporting

of renewable energy generation,

as Stanford noted, “looked pretty

dirty with government, business,

these resources, only to buy them

Stanford forecast that the market

good at $750 a ton, but it’s virtually

labour, and universities, to think

back in the form of added value

for lithium batteries will continue to

invisible in the whole value chain”.

about how we can make this happen.”

products, such as clothing, cars, and

expand. With the mineral deposits

electronics.

in Australia being of high quality,

up, and more methods of extracting

development of a lithium battery

“We generally extract those goods

With more lithium mines opening

Outlining 10 suggestions for the

Stanford sees great potential for

lithium becoming viable, Stanford

industry in Australia, Stanford

and sell them to somebody else that

the development of a local lithium

implored Australian industry to look

highlighted that there is much that

does something useful with them.

battery industry.

beyond extraction.

policy makers can do, including

We hope to live off the proceeds of

Today, however, Australia has only

“Exporting raw lithium is a

mandating first-stage processing

that extraction, hoping that we’re

focussed on the extraction of lithium

chump’s game and we’re already

of lithium occur domestically,

generating enough money to pay the

from underground. To demonstrate

seeing an oversupply of raw lithium.”

creating a national taskforce for

bills for all the value-added stuff that

the futility of only being focussed on

we import,” said Stanford.

the first stage of the lithium value

have a major lithium battery

capital available for innovation

chain, Stanford highlighted that at

industry, Stanford argued that there

and investment, requiring domestic

prosperity, the booms and busts

US$750 ($1,100) per tonne, Australia

is no need to lose hope. With the

content in the public procurement

of Australia’s history point to the

is only extracting a miniscule

beginnings of lithium hydroxide

of vehicles and utility storage,

unsustainability of this strategy

fragment of the potential value of

refineries in Western Australia, and

and supporting the teaching of

in the long term. With lithium the

the ore.

battery manufacturing projects

skills related to lithium battery manufacturing.

While this leads to short-term

While Australia does not yet

battery manufacturing, making

latest in this line of raw materials

The next stage for the product is

starting to get off the ground in the

Australia has produced and then

its refined state of lithium carbonate,

Northern Territory and Queensland,

sent around the world, Stanford

where prices increase by 10 times.

the foundations are starting to be

can be a sustainable manufacturing

encouraged a clear-eyed approach to

One tonne of lithium carbonate can

laid. Linking these developments

superpower. Making the most of this

the development of this resource.

then produce one megawatt hour’s

to electric vehicle manufacturing

incredible endowment of lithium

In 2017, the total worth of

worth of batteries, equivalent to 14

in Victoria, and utility battery

and the potential of this industry

lithium sales stood at $35 billion,

medium-sized batteries that power

production in South Australia,

could be a gigantic step to become an

with 20 per cent yearly growth.

electric vehicles. These batteries are

Stanford remained positive.

electric superpower.”

34 OCTOBER 2019 Manufacturers’ Monthly

In sum, noted Stanford, “Australia

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Recycling Recycled tyres are providing a new material stream for innovative manufacturers With only 10 per cent of the 56 million tyres discarded in Australia annually domestically recycled, this stream of product presents an opportunity for businesses, the environment, and the economy. Tyre Stewardship Australia explains the value of this material.

T

HE Australian manufacturing sector could play a pivotal role in developing new markets and products using end-of-life tyres.

Tyre Stewardship Australia (TSA) wants to work with innovative manufacturers to increase the use of tyre-derived product (TDP) in the domestic economy. The organisation already helps Australian businesses through its Market Development Fund and since the Fund’s inception four years ago, more than 30 projects have been supported.

“Australian manufacturers are becoming more innovative and environmentally aware. TSA is calling on them to consider using tyre-derived product in the development of new products,” said the CEO of TSA, Lina Goodman.

“We want to work with manufacturers who are keen to become active members of the circular economy. Finding new uses for used tyres is good for the environment, business, and the economy,” she said.

TSA was formed in 2014 to implement the national Tyre Product Stewardship Scheme, which promotes the development of viable markets for end-of-life tyres.

Only 10 per cent of the almost 56 million tyres discarded annually in Australia are presently domestically recycled. The rest are either exported overseas, disposed to landfill, stockpiled, or illegally dumped.

“There are already some great success stories and we are convinced there can be many more with some smart research and development and lateral thinking,” Ms Goodman said.

One Australian business driving change in the sector is Lomwest Enterprises.

Initially, Lomwest was a collector in the tyre recycling industry, baling tyres for overseas processing. But, manmonthly.com.au

Recycled tyres are used for the C4M walling system as a versatile material. owner and director Cliff Strahan thought there must be a better use for the tyres.

Through his innovative approach the company developed a walling system that houses the tyre bales within two skins of concrete for domestic application. It’s called the C4M walling system and it has numerous applications.

“The C4M walling system can be used as retaining walls, sound barriers, sea erosion protection walls, and even as blast and impact barriers,” said Mr Strahan.

“For example, the product has been installed at the BP Kwinana Refinery in Perth to act as a blast wall.

“Through TSA support, I am working with Curtin University to prove the product can also be used safely and reliably in the civil construction and heavy industrial manufacturing sectors,” he said.

Other innovative manufacturers are using old tyres in a range of exciting applications: road surfaces, equine tracks, sound and impact barriers, permeable paving, soil retention, and stabilising solutions.

“These are all fantastic examples of Australian companies willing to think outside the square in order to find new opportunities,” said Goodman.

“Not only are they creating new markets but they’re also adding value to the circular economy and, of course, diverting tyre waste away from landfill and stockpiles.”

To minimise the environmental and health and safety impacts of end-oflife tyres, Australia needs diverse and sustainable domestic markets for TDP. Stronger markets for TDP will mean more tyres get recycled rather than mishandled and stockpiled, creating risk for the community.

Stronger markets also act to

reduce this risk by creating more value for waste tyres and driving more competition for material. This supports a more robust recycling market that feeds a stronger and more diverse TDP consuming manufacturing sector.

But TSA understands that new markets don’t just emerge overnight. They take time to develop properly due to the need for robust research and analysis.

“That’s why we established our funding streams. We want to support businesses and organisations as they develop new markets and products and thus increase demand for Australian tyres,’ said Goodman.

In order to support TSA fund objectives, funding is delivered in two streams; the Project Stream and Scholarship Stream. The Project stream is the most relevant to the manufacturing sector and to date TSA has committed more than $4.5 million to research and development, demonstration trials, and infrastructure enhancement to increase the use of tyre-derived products in the domestic economy.

“If any manufacturing company is searching for a way to differentiate its business, it should consider the features and benefits of tyre-derived products as well as the funding support available through TSA,” said Goodman.

“Successful Australian manufacturers are surviving and thriving through being incredibly robust and innovative. TSA is keen to help the sector grow well into the future.”

For Goodman it’s all about creating a better future for manufacturers, the community, and the environment.

For more information about the funding streams or to apply, visit the TSA website; www.tyrestewardship.org.au/tsa-fund Manufacturers’ Monthly OCTOBER 2019 37

DECEMBER 2019 – INDUSTRIAL LIGHTING Lighting can make up to 80 per cent of a warehouse’s energy bill, and contributes to a significant percentage of a manufacturer’s operating costs.

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In December 2019 we speak with industrial lighting providers who are providing viable, hassle-free solutions for modern manufacturers to help increase their bottom lines, while maintaining a responsible and sustainable business.

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: 31 October 2019

To book contact DANILO CORTUCCI now danilo.cortucci@primecreative.com.au | 0434 419 663

Compressors BOGE Compressors: solutions for all applications BOGE outlines their latest product range for precise applications.

T

HE BOGE compact TOP AIR piston compressor line allows for oil-lubricated air production up to 15 bar. The best of German engineering excellence has brought together the advantages of a reciprocating piston compressor design alongside an innovative control and monitoring system. This provides medical and other professionals with precision and power in equal measure, ready to be applied to almost any required environment.

Advantages of the piston compressor SC design include: • Super silenced design for less intrusion.

• Compact casing perfectly suited for smaller environments.

• Rugged operation capable of 100 per cent duty.

• Seven models available from the 2.2kW, 3.0hp SC up to the 15kW and 20.0hp SC 20

Scroll compressors for medical air For 100 per cent oil free compressed air and super quiet operation

The EO Series requires no outside filtration. the BOGE EO Series is a winner.

The features of this line includes minimal vibration, very low noise levels, and a high efficiency two-stage after-cooler. The model variants include 4, 6, 8, 11, 16, 17, and 22kW designs.

The EO seires can be supplied with or without integrated refrigerated air dryers, some tank mounted models, and optional 8 and 10 bar variants. Up to four compressors can be installed in one housing. The BOGE Focus controller can manage up to four individual machines providing better efficiency and more virtual redundancy.

All BOGE pipes are guaranteed for up to 10 years.

Connect with BOGE aluminium pipe.

The efficiency of any compressed air system can be compromised by poor plumbing and poor performing pipe work and fittings. The BOGE Aluminium pipe is guaranteed for 10 years. All parts in the BOGE AIRficient Piping System are designed for temperatures between

-30°C and +80°C and have selfextinguishing properties. Even after 10 years, the system will continue to provide uniform throughput and consistently high compressed air quality at the end of the pipeline. We guarantee it. BOGE aluminium pipe is a non-exclusive product available to all users for any application. Six metre lengths are available in 20, 25, 32, 40, 50, 63, 80 and 110mm with large quantities of pipe and fittings in stock and readily available to anyone.

Specialised adsorption dryers

The piston compressor SC is one of BOGE’s extensive range of high pressure piston compressors. manmonthly.com.au

BOGE breathing air systems remove irritants from compressed air, preparing it for use as a dependable supply of breathing air or for touching food products and other applications where bacteria must be removed. Model variants include adsorption dryers with heatless regeneration, external heated regeneration and vacuum cooling or active carbon absorber plus adsorption dryers for breathing air.

The DAV model ensures dry air for food production and other applications.

The DASZP model prepares air for the most delicate of operation.

Manufacturers’ Monthly OCTOBER 2019 39

Test &Measurement Local testing supports a precise manufacturing industry With greater requirements for precision and accuracy, Paul Cibotto of Test Machines Australia explains the value of having a local equipment supplier.

O

NE of those phrases that really needs no repeating is “you get what you pay for”.

And it’s a series of words that has all too often come out of the mouth of Paul Cibotto, CEO of Test Machines Australia.

Having viewed countless machines that have been imported into Australia to test products and materials, Cibotto knows that when the focus is on reducing costs, the outcome of cheaper, imported machines is poor-quality results.

“Quite often overseas manufacturers will have a domestic quality machine that is sold at a lower price. Now, when you buy on

price, they’ll sell you a lower quality machine.”

Cibotto doesn’t begrudge those who choose the cheaper option.

However, being a manufacturer of test machines himself, he knows what to look for.

“Visually, the machines will all look the same – the wheel can only be round. But what’s inside the wheel is what matters. You’ll have different quality motors, servodrives, and load cells and this plays a big part in their long life.”

While the price differential may be attractive up front, thinking in the long term, the difference balances out.

“You might save 10 per cent of

Quality test machines ensure a product is up to standard.

the price by getting the cheaper parts, but when the equipment is two years into the running all of a sudden it’s not worth it, because now you have to replace it with parts and labour at Australian prices,” said Cibotto. “The other thing is, when you buy from overseas, it can come with pirated software, so the Windows operating system may not be genuine, or so old that is it no longer serviced by Microsoft or the software manufacturer.”

Beyond the product itself, Cibotto has seen issues arise when manufacturers turn to the support that was promised when they purchased their overseas product.

“When something goes wrong, you need to talk to somebody,” said Cibotto. “The first thing you do is you call the company or you call the agent.

Now, when you buy something from overseas, you either need to contact them in their time zone and quite often in their language, or send an email and wait. Quite often you will be talking to the sales team, who then have to translate to the engineers and vice versa. For example, you can only relay your information across to them about what you think is wrong, and they then have to try and guess what the problem is and how to fix it.”

Without local technicians, diagnosis of the issue has to occur remotely, and the purchaser is obligated to do the work to rectify the problem. This presents a significant issue of liability, as Cibotto highlights.

“If the operator starts trying to do the repairs themselves, whether it be under instruction or not, if they make a mistake, or there’s a mistake in the communication or translation, who is liable for the extra damage that is caused? If the operator electrocutes herself or injures himself, then who is liable? Is it the manufacturer? Is it the person? Is it the boss of the company?”

The human element With these questions unresolved, Cibotto recommends turning to a local manufacturer of testing equipment, such as Test Machines Australia.

“We can send out a technician the same day, or the next day, whether it be Australia wide, who can then work out exactly what it needs and then get you back up and running straight away,” said Cibotto.

The timeliness of a fix also presents a cost saving, one that would otherwise have to be worn by the company if they had purchased an overseas product without local support.

40 OCTOBER 2019 Manufacturers’ Monthly

manmonthly.com.au

Test&Measurement “When you’re in a production factory, you’re relying on the results of that machine to continue your production run,” said Cibotto.

“When the machine’s not running you’re effectively making products that are unqualified and can be going out the door untested. If you make the wrong, product and something goes wrong there’s that cost. You can send your products outside to get tested, which is extremely expensive and defeats the purpose of buying the machine in the first place. So, yes, you might save a couple of thousand dollars but it has cost you a fortune and you don’t even know if the thing is working properly or not.”

Cibotto knows the difference between a locally made or supported machine and a cheaper product purchased from overseas. One of Test Machine Australia’s services is fixing other brand products that have had a fault or failure.

“We spend a lot of time fixing other company’s machines. I went to another machine where just after the purchaser bought it, the electrician looked at it and they put an interlock on it, saying the machine cannot be turned on or powered up until it was made electrically safe,” said Cibotto.

“The electrician said, ‘This doesn’t meet the Australian standards, and we’re not allowing it be powered up until it’s been changed.’ All of a sudden the machine that they’ve just bought they’ve had to pull apart and rewire to make it electrically safe for Australian standards. This blew out the costs of the low initial purchase price to well over the cost of an Australia sourced machine.”

Meeting Australian standards The standards that Australia sets and the requirements of local manufacturers to be fastidious when it comes to the testing of their products, has only increased as the industry has shifted from high volume, high throughput manufacturing, to specialised, precision equipment. Here, the need for accurate testing equipment, such as the series of Kyowa Strain Gages that Test Machines Australia offers from the Japanese manufacturer, is even more pronounced. manmonthly.com.au

We’ve been involved with the Formula SAE program, a race car program led by tertiary students, where we’ve assisted them with strain gauges, displacement measurement devices, and data logging devices so they can then test their carbon fibre parts to ensure that have the strength required to do the task that they want to do.

“Australia has now gone away from a lot of manufacturing, but what Australia is now very well renowned for is the R&D side of it,” said Cibotto.

“We have a lot of intelligent people and we’re developing high-quality products for the world. What’s happening with the new high dollar prototyping that is going on, they’re now fitting the strain gauge to the prototypes and using a higher quality logging software to do the testing.”

Cibotto has seen this shift occur in his own client base, as the orders are coming less and less from large steel manufacturers, for example, and more from research institutions and university laboratories.

“We’ve been involved with the Formula SAE program, a race car program led by tertiary students.

We’ve assisted them with strain gauges, displacement measurement devices, and data logging devices so they can then test their carbon fibre parts to ensure that have the strength required to do the task that they want to do,” said Cibotto. “They’ve learnt a lot about their carbon fibre, or their product development, while being able to test the products in actual real life use.”

Accuracy at this point in the production process is key, as the products tested at universities will go on to be applied in commercial cases based on their innovative qualities.

“With these people learning the manufacturing techniques they can then build a more efficient product, which then be extended into larger things whether it be bridges, houses, or vibration-proof buildings. Products that many years ago would fracture and break, we’re now developing

products that have a flexibility in there, or a higher strength with a lighter weight,” said Cibotto.

Being involved with this kind of R&D and innovation is core to what Test Machines Australia do. As Cibotto highlights, those that work at the company come from a context that is intimately connected to the process of manufacturing.

“We don’t come from a sales background, we actually come from an engineering background,” he said. “We used to manufacture these machines ourselves so we know what they are, why they are, and how they need to be, as opposed to selling out of a catalogue or being a distributor.”

This history allows Test Machines Australia to provide a full suite of services, tailored to the individual needs of each client.

“We provide repairs and calibrations to all brands,” said Cibotto. “We also provide a design service. The machines themselves need specialised fixtures and designs.

We custom design what they require and manufacture them as well.”

Test Machine’s range of products include both locally manufactured devices as well as machines from brands such as Tinius Olsen and Kyowa, which are locally calibrated to meet Australian standards.

Keeping it local “While some of our machines are manufactured overseas, they are manufactured to our design,” he said.

“We have a strict quality standard that includes permanent life codes on the software. It includes licenced software so the Windows operating system is a genuine product.”

When installing these machines, Test Machine provides the fittings needed to ensure that the unit is set up properly for each application.

“Quite often those machines will require other sorts of other equipment to work with them, whether it be sample preparation, cutting dies, presses, measuring devices, all those sorts of things we can supply. If you’re building a lab, we can supply everything in one package,” said Cibotto.

Once a customer has decided upon the product and solution they require, Test Machines Australia can provide and install it all at their facility, the next step is to ensure that those who are going to be using the system are fully prepared to get the best results.

“We also do installation and training as well,” said Cibotto.

“You’re not just buying a box that gets delivered and an instruction manual, but we’ll come set it up, install it, and train you on your machine, with your samples.”

Having been in the industry for over 20 years, Cibotto and his team know how to get the most accurate results from their products.

“We will then apply our expertise to how you can get repeatable and reliable results. There’s no use having a machine that’s so complicated or complex, because then it gives unrepeatable results due to operator error.”

With Australian manufacturing becoming more specialised, it is this knowledge that Cibotto has built up over a career and imbued in his organisation, while being locally available, that marks out Test Machines Australia.

“This morning a customer came and wants to test locks on doors,” said Cibotto. “He’s after a specialised impact tester, so it’s not just your normal off-the-shelf type tester. He is setting up a standard that he wants and then we will design a specialised machine to suit his application.”

As Cibotto noted “there’s nothing really on paper saying exactly what it is,” for this customer, so it is contingent upon Test Machines Australia to develop this solution.

Manufacturers’ Monthly OCTOBER 2019 41

Pneumatics Celebrating rebirth and ensuring consistency A customer-centric approach has led to SMC growing locally and overseas.

Manufacturers’ Monthly explains.

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EACHING 60 years of age, in Japan, is an occasion for festivities. At this age, it is customary to conduct a celebration known as a kanreki. The tradition symbolises rebirth, and marks having passed through the full 60-year cycle of the lunar calendar. The anniversary is a time to renew connections and look ahead to the next stage of life.

SMC Corporation, an industrial automation company listed on the Tokyo stock exchange, recently passed this milestone and thoughts of renewal and rejuvenation were not far from the minds of those in the corporation.

“I don’t think there’s a lot of industrial sales businesses that can say they’re 60 years old and continue to reinvent products and actually have skin in the game when it comes to research and development (R&D),” said William Lebihan, head of field sales at SMC Australia and New Zealand.

While reinvention and research may be what is keeping SMC young today, throughout the past six decades, there has been a constant focus on keeping customers central to the business’s ethos. This approach is encapsulated in the three white lines that form SMC’s blue logo. Of course, as Lebihan notes the lines symbolise the airflow that is central to the pneumatic company’s products; but, in addition, each line has a distinct relation to the company’s attitude to customers.

“The first line is to understand our customers’ needs, the second line is to understand what their requirements are, and the third line is to evolve our products accordingly. Those three lines help support our approach to customer centric design,” said Lebihan.

Such a code is present in SMC Corporation’s presence in Australia, the first overseas subsidiary for the Japanese company. In 1969, the Tokyo headquarters decided to acquire an 42 OCTOBER 2019 Manufacturers’ Monthly

Australia pneumatics manufacturer.

SMC has taken this approach to its global expansion; ensuring that local expertise can be augmented with the company’s attitude to customerresponsive growth.

Today, SMC operates in 83 countries, with 28 production facilities and five R&D facilities. In each case, the local particularities and idiosyncrasies were respected, and Lebihan sees this as a constant running through the company’s trajectory.

“Potentially the main reason why we have been around for 60 years, and will continue to be around for another 60, is because customers shape how we approach our products and our service to market,” said Lebihan.

In breaking down what this approach means in practice, Lebihan stresses that SMC representatives do not begin a conversation with a product to sell or a solution to push.

“It’s important for us to understand the customer’s business and what they’re trying to achieve holistically, and then get an understanding of what they want to do,” said Lebihan.

Instead, Lebihan advocates an approach where a sale is not the intended outcome of every meeting.

“You’re essentially there to support them in the challenges they have in their business and therefore learn about how we can further support them going forward, so it takes that pressure off the interaction and customers feel the tension drop in the interactions,” said Lebihan.

These discussions then tend to focus on the particularities of each business and where SMC can be a useful fit.

“It’s easy to turn up with a catalogue and stick it under their nose and say that’s what you need. But we’d much rather come from the customers’ viewpoint and what they’re feeling and get an understanding of how our

William Lebihan sees the value in first understanding the customer’s viewpoint. products can support that.”

Once the application or use-case is determined, the next step for SMC and the customer is to decide what solution is appropriate. Lebihan points out that that solution could be anything from an off-the-shelf product to an engineered solution that draws on the expertise of the 18 local engineers the company employs throughout Australia and New Zealand.

Recently, this sales process was conducted by SMC for a national pallet manufacturing client. The customer, which supplies and repairs pallets for various businesses, wanted a solution that would save them energy.

“Now it may sound pretty straightforward; a company wants to save energy, therefore they’ll save money as electricity continues to go up, but it’s easier said than done,” highlighted Lebihan. “But you have to get an understanding of the customer’s energy footprint. A lot of customers want to save energy but don’t know what they’re spending.

So, starting this discussion with the customer enabled an understanding of what they’re spending, and what they’d ideally like to save.”

With this base-understanding agreed between SMC and the manufacturer, the next step is to

determine the appropriate solution.

“In this instance, we put together an engineering solution – installed on the customer’s site – that was designed, engineered, and then manufactured at our facility,” said Lebihan.

Ultimately, this enabled the customer to find savings of more than 20 per cent.

While not every situation will call for this particular approach of a custom-designed product, what made the solution between SMC and the pallet manufacturer possible was the range of local assistance that SMC was able to offer. With a major manufacturing facility in the Sydney suburb of Castle Hill, SMC has facilities spread across Australia and New Zealand.

Having a local base also allows SMC to meaningfully engage with their customers, particularly through disruptions and changes to the industry. One way in which this currently occurring is through SMC’s engagement with Open IIoT, which provides customers with a tactile demonstration of the capabilities of Industry 4.0.

“There are so many applications for Industry 4.0, but I think customers across Australia and New Zealand actually want to see it working,” noted Lebihan.

These corporate initiatives are supported by a team of over 80 salespeople working for SMC in Australia and New Zealand – a presence that Lebihan sees as indispensable.

“We do believe that people do buy from people. Customers can pick the phone up and talk to SMC and they can get to see someone face to face, that’s our sales approach.

“We’re here to support local manufacturing and production facilities in Australia and New Zealand because we’re one as well.” manmonthly.com.au

HVAC A cool advance in HVLS technology As summer returns, so too does the heat and uncomfortable conditions that impact on the productivity of employees working in warehouses and factories. Fantech highlights the importance of having a well ventilated facility.

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HE human body is designed to maintain an average temperature of about 37°C. In hot weather, the body sweats and the resulting moisture evaporates to cool the skin.

But when the environmental temperature is hotter than the body, a number of heat-related conditions can result.

In large, enclosed spaces such as warehouses and factories where high heat can impact on the comfort and productivity of employees, Hunter high volume, low speed (HVLS) fans are designed to eliminate the build-up of hot, stagnant air in summer by maintaining constant air movement.

Developed by Hunter Industrial – part of the 133 year-old Hunter Fan Company – Hunter HVLS fans feature a light weight, direct-drive motor that makes installation easy, delivers exceptionally low operating costs, and provides whisper quiet, trouble-free operation.

The design of its aerofoil blade features a unique twist profile to maximise efficiency and deliver a high volumetric flow rate.

Direct-drive, light weight motor Hunter HVLS fans use a directdrive, permanent magnet motor that offers several advantages.

“The direct-drive motor is significantly lighter than gear-driven alternatives,” explained Peter Henry, intelligent ventilation product manager at Fantech.

“It’s designed to generate large amounts of torque even at low speeds, while operating at less than 55dBA to ensure whisper quiet operation.”

The direct-drive motor is up to 50 per cent more energy efficient than a gearbox or gear-driven fan motor and is extremely durable with fewer components. manmonthly.com.au

Touchscreen controllers The Hunter range of touchscreen controllers are designed to speed control each fan individually in forward and reverse, or manage a system of up to 30 HVLS fans.

The control system with scheduling takes advantage of the latest digital technology to ensure it can be tailored to suit the requirements of almost any high ceiling application.

High volume, low speed fans maintain constant air movement.

All about the blade The innovative geometry of Hunter HVLS fan blades was developed in collaboration with an aerospace engineer to ensure large air volumes were generated while minimising noise and energy use.

“Every fan size in the Hunter range features its own blade profile that varies over the length of the extrusion to ensure air flow is maximised across its entire blade length,” said Henry.

Engineered for easy installation If ease of installation is important, then Hunter’s Titan and ECO HVLS fans provide a capable solution.

As well as being light weight, the range has been specifically engineered to be quick to install and simple to commission.

Installation errors are minimised thanks to a number of pre-assembled features, including pre-installed studs, a pre-wired drop tube, and pre-aligned mounting brackets. The drop tube’s “quick connect” clamping system attaches the drop tube to the building’s I-beam without the need to drill holes.

The blade clamps on the Titan range of fans are replaced with a proprietary “quick connect” system.

“This means just one installer can easily mount the Hunter HVLS

Selection made easy blades,” said Henry.

“It’s done by simply sliding each blade tube into the blade hub until it clicks into place. Then simply tighten the pre-installed set screws with a torque wrench to lockdown the blades.”

Hunter Titan HVLS range There are large industrial HVLS fans, and then there is Titan.

This master of the air achieves thorough mixing within an indoor space to eliminate uneven temperatures, while reducing energy costs, improving comfort, and increasing productivity.

The Titan HVLS fan has an effective coverage area ranging from 484m² with the 4.2m size, to a massive 1,369m² with the 7.3m model.

The Titan range features a sleek and contemporary design that will complement any commercial space.

Hunter ECO HVLS range Hunter ECO is one of the lightest HVLS fans available on the market.

Featuring a robust direct-drive motor and structural aluminium blade design, the range is supplied with the same “plug and play” pre-assembled components to simplify installation.

The Hunter ECO has an effective coverage area ranging from 95m² with the 2.4m size, to 858m² with the 7.3m model.

Not all HVLS fans are the same.

Whether air is moving through a commercial space, a temperaturesensitive facility, or a large industrial warehouse, selecting the right size Hunter fans with the most effective spacing arrangement will ensure the best return on investment is achieved.

Fantech’s web-based, step-by-step selection tool makes choosing the most effective HVLS fans for your application simple.

“Just enter the width, length and height of the area the fans will serve, as well as the ambient temperature and desired cooling effect from the fans, and let the selection tool do the rest,” said Henry.

The Fantech HVLS selection tool performs calculations to the ASHRAE Standard 55-2017 Thermal Environmental Conditions for Human Occupancy to determine the best fan, size, and spacing arrangement.

Using this standard, the cooling effect of Hunter HVLS fans at different locations relative to other fans (under normal conditions) is determined.

The selection tool can also estimate energy savings when using HVLS fans in air-conditioned spaces, or when HVLS fans are used for destratification.

For more information, and to use the selection tool, visit www.fantech.com.au/hvls.

Manufacturers’ Monthly OCTOBER 2019 43

Women in Industry Crossing the divide: working across industry and education for skills training

Nominee Profile: Rising Star Award Sponsored by:

For Melissa Tinetti, preparing students for the jobs of the future requires collaboration and cooperation. Manufacturers’ Monthly reports.

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ITH the shifting demand for skills as the manufacturing industry transforms, education providers have been under pressure to produce graduates with digital skills. While the university and vocational sectors have been seen as distinct, for Melissa Tinetti, associate dean of Industry Programs at RMIT University, both have a role to play in educating future graduates for the next generation of manufacturing jobs.

Encompassing fields from dental to surveying, Tinetti contends with the quotidian realities of the skills shortage. With perspective of an education provider that provides both vocational and higher education programs, Tinetti stresses that collaboration between the Vocational Education and Training (VET) and university sectors is what is needed.

“Vocational education is about experiencing real life challenges, while you’re studying, but higher education is more about being in a lecture theatre with more people and learning,” said Tinetti.

Indeed, as Tinetti notes, after studying at a vocational level, those who succeeded in their skills-based studies find similar success when they undertake further study.

“The skills that students would learn in their vocational studies meant that they would easily finish in the top 10 per cent in their higher education studies. These students have the drive, the passion and most have already had the chance to try the industry already and get a qualification out of that,” said Tinetti.

Recognising that the two sectors are complimentary requires a flexible approach from educational providers.

As Tinetti highlights from her own experience in the building and construction sector prior to working in education, it’s the lessons and skills that educational providers give their 44 OCTOBER 2019 Manufacturers’ Monthly

students that remain useful after final examinations are over.

“I use tools that I learnt while studying every day. I think that’s a really good lesson for younger students – where you’re on a path now through the Victorian Certificate of Examination (VCE) and starting to look at higher education or at TAFE and you don’t actually know where that path is going to end. It’s those life lessons that you learn along the way, particularly as you’re studying, that will help map out that pathway for you in the long term.”

In Tinetti’s experience, with the changing nature of industry and education, the ability to impart students with talents they will use over and over again throughout their life involves recognising where what is taught at a university can compliment a student’s industry training.

“We don’t have the volume or facilities to run a full carpentry program here at RMIT, so we are able to run eight units face-to-face on campus and the rest are done out in industry. The benefit to the employer is that they’re not losing their apprentice a day a week, they might be losing them for one week, four times a year and that’s it,” said Tinetti.

Working at the intersection of industry and education requires constant contact between RMIT and industry, which Tinetti facilitates through committee meetings four times a year, where industry can provide feedback on the training being provided by RMIT. “It’s a really good way to get a feel for what our industry is needing and to also get a feel for whether out training meets the requirements of the industry,” said Tinetti of the meetings.

With industry as a partner in delivering the skills that the workforce needs, regular contact between employers and educational providers

Combining the strengths of the VET and university sectors can produce students committed to careers in industry. is essential for the students’ success.

“Those employers are really driving the learning and the teaching for their students,” said Tinetti.

Another influence in the training relationship between students, education providers, and industry is the governmental standards.

While state governments set the standards for education providers, in implementing these standards, Tinetti liaises with industry partners to ensure that the course that RMIT is delivering is similar to how industry would teach the same skills.

With the increasing pace at which technology is adopted, universities are in a unique position to provide students with the most advanced technology. Tinetti reflected on her own experience working as a project architect, managing the contract for the manufacture of a unique shading screen for a building in Ballarat.

“We were able to make anodised red perforated panels across the whole façade that would allow different amounts of sunlight into the building at different times of the day.”

Tinetti and her team relied upon prototypes to test the material. Today,

students are utilising software during their studies and the employing this in the workplace.

“The ability to test things and build things three dimensionally in computer aided design (CAD) application, such as AutoCAD, gives the student a much better perspective of the final outcome would be.”

Tinetti’s journey to her current position began 11 years ago, after finding that she needed another challenge in her career. While managing students, curricula, and staff, Tinetti has used the project management skills she learnt as an architect in her current role.

Nominated for the Rising Star Award at the 2019 Women in Industry Awards, the nomination allowed Tinetti to look back on what she had achieved since making the jump into education.

“It wasn’t really until someone nominated me that I reflected and thought I had really done a lot in 10 years and there’s a lot I should be proud of.

“The reward that you get when you see students suddenly get it, is amazing.” manmonthly.com.au

Women in Industry Putting diversity into practice

2020 Sponsor:

Understanding the value of gender balance has led BAE Systems to implement flexible working arrangements. Manufacturers’ Monthly explains.

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ROMOTING and encouraging diversity is not only justified from a moral perspective, but is empirically proven to increase profitability. In a study of 506 for-profit organisations in the US, those with greater gender diversity had higher sales revenues, greater numbers of customers, market share, and, ultimately, profits.

This is something that defence contractor BAE Systems has taken to heart, as Cathy Riach, employment brand and partnerships manager BAE Systems Australia, points out.

“To ensure success as a business, we need to attract and retain talented people, men and women, but we also know from research and our own experience that gender balanced and more diverse teams are also good for business. A more diverse team is more innovative, productive, and successful.”

BAE Systems has been putting this research into practice, with a number of programs designed to support the participation and elevation of women in its workforce. These programs have included structured mentoring opportunities, requiring diverse interview panels during recruitment, and Lean In Circles, inspired by Facebook chief operating officer, Sheryl Sandberg. One of the more

Implementing flexible working practices has been a focus for BAE Systems to attract and retain a diverse pool of talent.

manmonthly.com.au

significant changes was the revision to the company’s flexible working handbook and employee leave policy.

Not only applicable to women and parents, promoting flexibility in the workplace has been one way for BAE Systems to change the culture of work in their organisation.

“In the early days, particularly in the flexible work side, it wasn’t enough to just say, ‘Hey, we’ve got flexible work practices and policies,’ we actually had to prove it.”

This proof of concept was done by publishing case studies on employees who had taken advantage of the flexible working program. Examples included board members and senior individuals within the organisation, showing that there was no stigma against those who took advantage of the policy. This approach ensured the focus of work at BAE Systems remained on outcomes.

“It’s really important to have role models,” noted Riach. “You don’t have to have your jacket on the back of your chair to prove that you were working.”

BAE Systems drew upon the expertise of the Diversity Council and the Workplace Gender Equality Agency, which endorsed the CEO of BAE Systems, Gabby Costigan, as a pay equity ambassador.

Where BAE Systems is today is a

result of foundations that began the journey, and one that has seen growth in gender equity across the business.

“We first looked at our executive population,” said Riach. “We were about 15 per cent female. It now sits at 26 per cent. Our graduate recruitment has a base target of 30 per cent female, a stretch target of 50 per cent, and at an overall enterprise perspective we are currently sitting at 21 per cent female with the goal to get to 30 per cent.”

As the company has pursued these goals, some unexpected or unforeseen benefits have emerged. With flexible working available to anyone in the workforce, been taken up by employees to pursue volunteering commitments, further study, sporting pursuits, as well as caring for parents.

While this has been seen as a measure of success within the company, BAE Systems acknowledges that broader trends across the defence and engineering sector more broadly limit the participation of women in the workforce. For Riach, it is the lack of women studying STEM subjects at a tertiary and secondary level that limits their numbers in the workforce, with women comprising only 10 per cent of the engineering workforce at BAE Systems.

“We are already feeling the pinch now, and if we want 50 per cent of our engineering workforce women, there’s a huge shift that we need to make,” said Riach.

To take the first steps to make this shift happen, BAE Systems has had to counter the stigma that the defence industry has in regard to the working conditions for women. This involves getting the story of BAE Systems’ efforts in the gender equity field out to the broader community. One method by which BAE Systems hopes to do this is its sponsorship of the Women in Industry Awards for 2020.

“This isn’t an award that’s just for the defence industry, it’s for the

BAE Systems has reviewed their hiring practices to ensure women applied for key roles in the company, particularly engineering.

engineering community,” said Riach.

At the same time, BAE Systems has monitored the success of their programs via metrics which track the participation of women at each point of their business, with a particular focus on engineering. This gives the company an understand of the trends of employment by gender. Other areas which are given particular attention due to their indication of the success of the diversity program as a whole is voluntary turnover of female employees, as well as the number of applications received from women and the percentage of new hires that are women.

For BAE Systems, the next step is to share the stories of those women who have been successful in the organisation, which comprises an element of the company’s public social media strategy. At the same time, Riach notes, “I think it’s key to have the content but you’ve got to be delivering that content to your target audience”.

To find out more about the Women in Industry Awards, visit www. womeninindustry.com.au

Manufacturers’ Monthly OCTOBER 2019 45

Belts&Drives Delivering efficiencies through product innovation.

The company which first developed the V-belt is continuing to innovate. Manufacturers’ Monthly explains.

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HERE are many companies that would like to claim that they are the market leaders in their field, but when your forebears created the field, it’s hard not to put credence to the claim. It was 1917 when John Gates manufactured the first V-belt. Then known as the International Rubber Company, in 1919 the company changed its name to Gates Rubber Company, and since then the Gates name has been synonymous with innovation in the manufacture of belts and drives. The most recent advancements in their signature V-belt continue to today.

This ongoing reputation is one that Mark O’Brien, product manager with CBC Australia, highlights as being manifested in the new products Gates has recently introduced to the market.

“Gates have typically been a market leader in innovation, and the first to put out the Predator style belts. They’re also seen as one of the leading manufacturers in the world, and that’s to do with

the rubber compounds, unique production techniques, and many years of field experience.”

These rubber compounds ensure that Gates’ belts can be used in trying industrial applications for the critical task of power transmission.

“Gates use high performance components which are very acceptable for abrasion, oil, and heat. The other thing they are very good at is improving flexing capabilities of their rubber compounds, critical to improving belt life.”

These material qualities can be seen in Gates’s range of Industrial Power Transmission Solutions, distributed in Australia by CBC. Beginning with the Hi-Power II, suitable for general applications across industries and market, the range then moves to the Super HC, which with its narrow cross section saves drive space while not compromising on effectiveness at higher temperatures.

The next step includes the Tri-Power and Quad Power 4 belt model. This high temperature V-belt incorporates the latest innovations developed by Gates, with functional benefits for the user.

“The Tri-Power and Quad Power belts are raw edge cog belts offering higher horsepower capacity, requiring less belts to do the same job as their wrapped counterpart.

With higher inbuilt efficiencies, it comes at around four to five per cent more efficient than the wrapped construction,” said O’Brien.

Internally, Gates has also improved

Efficiency savings can be found in space, maintenance, and wear.

46 OCTOBER 2019 Manufacturers’ Monthly

the belt’s effectiveness. The Tri Power and Quad Power Belts have flex-bonded polyester cords which enable equal load distribution along the length of the belt and reduced stress from flexing. The belt’s high heat rating means that it can perform effectively from -57°C to up to 121°C, well beyond the industry standard of -34°C to 60°C. Going one step further is the Predator belt. This heavy-duty, wrapped, aramid cord V-belt are the markets leading V-belts and are unmatched in their robustness and high load carry capability. This comes from the high strength, aramid tensile cords. Aramid type material are commonly used in military and aerospace applications. Gates’s use of aramid in their products ensures that their Predator V-belts have similar strength capabilities as those applications and similar compounds are called for.

O’Brien notes that this problemsolving belt is applied in some of the tougher condition in industry.

“They’re on very high performance, high kilowatts, critical applications,” he said.

The practical benefits of this construction come when the belt is used in applications such as pumps, large fans, crushers and large conveyor applications.

“The beauty about these belts is once you go up into the higher quality range, the less belts you need on the drive to do the same job,” said O’Brien.

While naturally saving space in the design of a process, there are also energy and cost savings as the belts last longer.

“The higher power rated belts last longer. A belt cost can be anything from $10 to $400-500 for a set and with the energy savings and less changeover of belts it can significantly outweigh the cost of upgrading your belts.”

Not only is the belt itself more efficient, but its impact on the rest of the manufacturing process leads to efficiency gains on other products.

“Instead of five or six belts you can have four, so there’s better efficiency for bearing and hub loads. There’s less stress on the bearing through load caused by the drive,” said O’Brien.

One of the salient features about the entire range of Gates V-belts is their easy usability. While all belts require some maintenance during set up in the form of tensioning, with Gates “match free system”, all sizes of the belts are interoperable, and can be installed without matching.

If support is needed, however, CBC are able to assist where required.

“We’ve had a long association with Gates since the late 1980s. One of the things CBC Australia offering is the backup support, so all our branches are supported with internal software programs that enables people to provide information analysis on the particular drives,” said O’Brien. “It also provides for our engineering teams for onsite training and we can go and set up a drive with our engineering service.”

In the case of an aluminium processing plant, when installed on a 12-10 Weir Warman slurry pump, Gates have found that drivers operating with the Predator belts have been operating without fault for 10 months and have not needed retensioning in this time.

Furthermore, noise levels have dropped, increasing amenity in the plant.

In another application, a vacuum pump at an aluminium smelter, belts that had a six-week lifetime were replaced with a Predator belt that is still running after 12 months of operating. With these significant savings, the innovating spirit that first gripped John Gates is continuing to drive manufacturing around the globe. manmonthly.com.au

What’sNew A dual pivot high-pressure gate valve Dual’s Pivot High Pressure Gate Valve is built with a steel body and features a heavy-duty stainless steel gate. Removeable sleeves on either side of the gate provide a bi-directional bubble tight seal, with no metal parts in contact with the flowing slurry in open position. As the Dual Pivot High Pressure Gate Valve rotates on the pivot point and the gate moves through the Dual Ring Sleeves from the side eliminating the damage caused to the sleeves by the traditional Knife Gate Blade.

• Light weight for easier handling; • No seat cavity where solids can collect and prevent full gate closure; • No gland to maintain; • Wide range of elastomers available; • Dual sleeve isolation.

Features: • 740 PSI/50 Bar (higher pressures on request); • Double seat design for heavy duty slurry service; • Ease of replacement of sleeves; • When open, the gate is fully pivoted out of the slurry flow; • Gate guard; • Bubble tight shut-off, zero downstream leakage; • No clogged bonnet to impede flow; • External epoxy coated; • Easily adapted to suit most actuators; • Low maintenance requirements; • Suitable for wet or dry service; • Bi-directional flow; • Packingless design; • Long-lasting lubrication; • Rotary style movement of the fate; • Face-to-face equal to High Pressure Knife Gate Valve; • Flush ports;

Company: Dual Products Intl.

Phone: (08) 9302 2601 Web: www.dualvalves.com

Mix difficult-to-blend materials in seconds Summers Equipment Inc. Dual Planetary Mixers provides high-speed mixing with no blades or time consuming clean up. Era Polymers, headquartered in Australia, is a global manufacturer and supplier of high performance polyurethane chemicals, servicing industries such as cast polyurethane elastomers, rigid foams, spray polyureas, coatings, adhesives, and waterproofing membranes.

Their machinery division will handle the global distribution of the Summers Equipment Dual Planetary Mixers that are produced in Canada. This design allows the operator to control the mixing bucket speed and arm rotational speed independently of each other. This design allows for mixing of a wider range of different materials and viscosities including, but not limited to, highly filled materials, Nano fibre-based composites, polyurethanes, silicones, and epoxies.

The 5kg model has a mixing capacity of 1-5kg, and the larger, 10kg model has a mixing capacity of 4-10kg. Both models have an adjustable mixing speed of 50-800 RPM (main arm speed). The bucket and arm speed can be controlled independently through a touch-screen operator interface. A feature of these units is that the operator interface of each can store up to 255 mixing profiles. The units can have up to three mixing profiles on any single recipe/formulation. A built-in maintenance schedule means the machine can be maintained with ease, with the operator being notified through the panel on what must be inspected, greased or repaired and when. Effective mixing can be achieved in both 5L, 10L and 20L standard pails.

Company: Era Polymers Pty Ltd Phone: (02) 9666 3788 Web: www.erapol.com.au

manmonthly.com.au

Manufacturers’ Monthly OCTOBER 2019 47

What’sNew New lubrication-free toothed belt axis igus has now developed an extra-compact toothed belt axis based on its flat drylin N linear system. Equipped with motor and control, the new system can carry loads of up to 20 Newton and a translation of 60mm per revolution.

From the lubrication-free plain bearing and the maintenance-free linear guide up to the completely ready-to-install linear robot, igus develops solutions either as a single part or as a system. With the help of its linear construction kit, the motion plastics specialist has now developed the new cost-effective drylin ZLN toothed belt axis. Whether in vending machines, service robotics, or automation systems, the new compact toothed belt system can be installed quickly. The flat drylin N linear guide ensures compact construction, which is just 27mm high and 40mm wide. The toothed belt mounted on ball bearings enables high speed dynamics.

Loads up to 20 Newton can be moved vertically at a ratio of 60mm per revolution.

By using high-performance polymers in the sliding carriage, users can completely dispense with lubricants and thus the maintenance of the unit.

Plug in, install, low cost The new toothed belt axis for low cost automation consists of standard components from the drylin modular system that can be fitted together and assembled quickly. Thus, the new axis is not only lightweight due to the use of plastic components, but also cost-effective and delivered quickly. A completely ready-to-install drylin ZLN can be ordered with NEMA stepper motors or with EC/BLDC DC motors as well as a suitable dryve control system. The new, costeffective toothed belt axis can be delivered from Treotham in the desired size with a maximum length of up to 750mm in 24 hours.

Company: Treotham Automation Pty Ltd Phone: 1300 65 75 64 Web: www.treotham.com.au

Neousys’ Nuvo-7000E/P series of next generation fanless embedded PCs Backplane Systems Technology is proud to present Neousys Technology’s Nuvo-7000 Series of next generation fanless embedded PCs, powered by Intel’s latest generation of processors.

The Nuvo-7000E/P is powered by Intel 9th/8th-generation core “I” Processors with up to 8/6-Core architecture that offer significant performance improvement over previous 6th and 7th-generation platforms.

This series includes Neousys’ technologies for superior ruggedness and versatility, such as effective fanless design, patented expansion cassette and proprietary MezIO interface. It also incorporates cutting-edge computer I/O like USB 3.1 Gen2 with up to 10 Gbps throughput and M.2 2280 M Key Socket for NVMe SSD or Intel Optane memory for ultimate system performance.

The plethora of on-board I/O ports (GbE, USB and COM) feature sophisticated protection circuits to endure stress from electrostatic discharge (ESD) and power surge. This makes the Nuvo-7000 series by far the most rugged embedded computer ever created by Neousys.

Flexible and versatile for a variety of applications, Nuvo-7000 variants are available with different cassette expansion options. With Neousys Nuvo-7000 series, customers get a true rugged platform that can accommodate a single PCIe card (Nuvo-7000E), dual PCIe cards (Nuvo-7000DE) or a single PCI card (Nuvo-7000P) according to customers’ application needs.

48 OCTOBER 2019 Manufacturers’ Monthly

Key features: • Intel 9th/ 8th-Gen Core i 35W/ 65W LGA1151 CPU; • Patented cassette for PCI/PCIe add-on card accommodation; • MezIO interface for easy function expansion; • Rugged, wide temperature range from -25°C to 70°C fanless operation; • Up to 6x GigE ports, supporting 9.5 KB jumbo frame; • M.2 2280 M key socket (Gen3 x4) supporting NVMe SSD or Intel Optane memory; • 4x USB 3.1 Gen2 ports and 4x USB 3.1 Gen1 ports; • VGA/ DVI/ DP triple independent display, supporting 4K2K resolution.

Company: Backplane Systems Technology Phone: (02) 9457 6400 Web: www.backplane.com.au

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Ultra-low harmonic drives from ABB ensure pollution-free electricity supplies ABB offers a comprehensive range of ultra-low harmonic (ULH) drives to keep harmful harmonics out of all different kinds of industrial applications. They provide significant customer benefits including improved reliability and increased energy savings as well as extending equipment lifetime.

The problem with harmonics Harmonics are introduced into the grid through equipment such as motor starters or variable speed drives. Harmonics can cause motors, transformers and other equipment to heat up, which is wasteful of energy and can ultimately damage the equipment.

Low harmonic content ABB’s ultra-low harmonic drive produces exceptionally low harmonic content and exceeds requirements set by low harmonic standards. Compared to a conventional drive, the harmonic content is reduced by up to 97 per cent. The total harmonic current distortion is typically 3 per cent.

Simple and cost-efficient installation With ABB “All Inside”-design, there is no need for external filters, multi-pulse arrangements or special transformers. The simple installation offers significant savings in space, time and money.

factor indicates that the electrical energy is used to its full potential.

The drive offers a possibility for network power factor correction in order to compensate for low power factors of equipment connected to the same network. It reduces the need for additional power factor correction equipment, such as filters and large capacitor banks. It can also help to avoid penalty charges set by electrical utilities for poor power factors.

For all industries and applications ACS880-31/34/37 ultra-low harmonic drives are customised to meet the precise needs of most industries.

ACH580-31 ultra-low harmonic drive is specifically designed for the HVAC (heat and ventilation) industry.

ABB experts can provide customers with consultancy and support for any questions relating to harmonic distortion.

Company: ABB Phone: (02) 9738 2277 Web: www.new.abb.com

Efficient energy utilisation The ultra-low harmonic drives also achieve a unity power factor. This high-power

Rexroth’s new axial piston variable pump Rexroth’s A10VOH axial piston variable pump bridges the gap between the classic thresholds of medium pressure and high pressure.

It can be used for applications that could previously only be handled by highpressure units, including steering drives, hydrostatic fan drives, and working hydraulics. It is also suitable for other demanding tasks which require a high nominal pressure and a compact design. The A10VOH features high-speed selfpriming. With a permissible rated speed of 2,300 rpm, it can achieve maximum displacement of 145 cm³ – without any impellers.

Machinery and its components must first and foremost be reliable and robust, even when under extreme application conditions. Hydraulic units are also expected to be space-saving and energy-efficient. Over-sized and hence expensive high-pressure units are often used for applications with a pressure level somewhere between the classic thresholds of medium pressure (280 bar) and high pressure (350/380 bar). With its A10VOH (series 60, size 145), Rexroth has created a solution which perfectly bridges the gap in order to enable users to achieve efficient operation in this “light heavy-duty” application area.

The new axial piston variable pump features a permissible nominal pressure of 320 bar in corner power operation at maximum swivel angle and rotational speed.

If the swivel angle is reduced, the permissible nominal pressure increases to up to 350 bar. As such, the A10VOH is ideal for use in various applications, including steering drives, hydrostatic fan drives, and working hydraulics. It is lightweight and, despite its size of 145 cm³, so compact that it requires the same installation space as the Rexroth A10VO (series 31, size 100).

manmonthly.com.au

High self-priming ability and rated speed Thanks to its innovative design, unlike other axial piston units the A10VOH does not require any impellers. With a permissible rated speed of 2,300 rpm, with maximum displacement of 145 cm³, it provides power density in the smallest of spaces. On account of its high-speed self-priming and lightweight design, Rexroth’s new axial piston variable pump is perfect for use in the demanding medium-pressure range.

Company: Bosch Rexroth Phone: (02) 9831 7788 Web: www.boschrexroth.com/en/

Manufacturers’ Monthly OCTOBER 2019 49

The Last Word Australian winners and losers in US China trade war The trade war between the US and China presents both challenges and opportunities for Australian businesses, writes Innes Willox.

W

HILE it is often said there are no winners in a trade war, the current impasse between the US and China is having mixed and some unexpected impacts on Australian businesses.

Ai Group members are telling us that they are being hit by the US tariffs on products manufactured in China and for the first time are being asked for the country of origin of all kinds of technology and equipment.

However, they are also getting new opportunities to quote for work in both the US and in China and of course, thanks to Australia’s special relationship with the US, we are one of the few countries exempt from additional US tariffs on steel and aluminium. So, as in all crises, there are both winners and losers, and sometimes one company can be both.

There are three main fronts in the current trade war that Australian companies need to pay attention to. The first is the Section 232 tariffs that the US is applying or threatening to apply to three different industries, the second is the US/China trade war, and the third is the US rhetoric around technology decoupling.

In March 2018, President Donald Trump announced new tariffs for imports of steel (25 per cent) and aluminium (10 per cent), using the argument that America’s diminished local steel industry poses a security risk to the United States. This was in response to an investigation by the Department of Commerce to into the impact of imports of steel and aluminium. It is interesting to note that the final tariffs are higher than the 24 per cent recommended for steel and 7.7 per cent recommended for aluminium.

Steel and aluminium from Australia avoided the additional tariffs, giving Australian companies a competitive edge to other suppliers. Australian aluminium exports in 2018 increased by almost 120 per cent, and while exports to the USA were a big part 50 OCTOBER 2019 Manufacturers’ Monthly

of that increase, exports to Japan, South Korea, Taiwan, and Thailand also increased, showing the ripple effort that unilateral action on tariff increases can have.

The other two industries that are affected by Section 232 tariffs are uranium and automotive products.

Over half of Australia’s uranium exports are sent to the US, and any disruption could affect those manufacturers who service local mines. In this case, the President determined that uranium imports were not a risk to the security of the US and deferred the investigation to a committee. The third industry, automotive parts, while important to the Australian manufacturing sector, was a strategic move to start trade negotiations with the EU and Japan, who have much more to lose in vehicle sales, not the specialist automotive products that Australia exports, many of which were not even listed in Commerce Department reports as being under investigation.

The trade war between the US and China caused indirect issues for Australia as soon as the first tariff shot was fired. In the period between

Chart 1

Ai Group’s Innes Willox.

US tariff increases being announced, and their implementation, Australian wholesalers were reporting to our Australian Performance of Manufacturing Index survey researchers that they were struggling to source inputs for the Australian market, because supply was being redirected to the US for storage before they could be hit by the first tariff increase.

Australian manufacturers have substantial supply chain footprints in both the US and in China, supply chains that are being tested in the

current environment. Companies are paying more attention to their suppliers, and the tariff codes that their goods travel under, to avoid excessive duty payments. With Free Trade Agreements with both China and the US, companies exporting product whose final processing occurred in Australia have an easier time. What is more complex is the impact to regional supply chains. For example 10 per cent of Indonesian products to China are inputs into products exported to the US and a reduction in demand may have a domino effect across our region.

However, agile companies will be eyeing the opportunities to take market share from US competitors in China particularly in cosmetics and pharmaceuticals and processed food.

Chart 1, from The Peterson Institute for International Economics, which is home to experts in all things trade, highlights the growing difference between China’s treatment of US products compared with the rest of the world. It doesn’t take into account the additional discount that Australian companies receive under our FTA. Australian companies rely heavily on American technology for domestic consumption and export. What has been missing in much of the coverage of the trade war is the increased controls on the use of American technology. Our members are certainly experiencing the impact of this with increased scrutiny from their Asia-based customers on the origin of their technology, and companies who incorporate products that have civilian and defence uses are struggling to secure supply.

What can Australian companies do to avoid being a casualty of this war? Talk and listen to your suppliers and customers. Attend industry events to understand how others are coping. In such a dynamic environment, information and relationships will be your strongest asset. manmonthly.com.au

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