Analysis

Dsifer releasing the New Zealand Manufacturing Industry Data and AI Survey

This survey aims to build industry understanding of the way in which data analytics and AI is being considered and implemented across the manufacturing sector in New Zealand for the purposes of informing organisations on how their peers are approaching these tools, informing support organisations on where opportunities exist and understanding benchmarking New Zealand against the global trends. The survey takes less than 10mins to complete and all information provided will be aggregated and anonymised for analysis and publication. The survey can be accessed using his link: https://www.surveymonkey.com/r/Data_AI_2023 and is open until 8th December 2023. We encourage as many people as possible to contribute their feedback so that we are able to generate an accurate picture of the New Zealand manufacturing industry and provide crucial insight in to shaping the future of data and AI adoption in the manufacturing industry.

Serious about reducing your carbon footprint? (Part two)

From NZ Manufacturer, October 2023. This month we get to the ‘pointy end’ of things. Using the concepts she explained in last month’s article, Nicky Andrews, Head of Carbon at thinkstep-anz, explains how to measure and reduce your carbon. But first, a recap. Where we left off: identifying the main sources of your carbon emissions So you’ve taken the first step. You’ve split your greenhouse gas emissions into direct emissions (Scope 1), indirect emissions (Scope 2) and the hidden indirect emissions in your value chain (Scope 3). Now you’re ready to measure them. Step two: measure your emissions Your Scope 1 and 2 activities Measuring your Scope 1 and 2 emissions is relatively simple. You’ll need two pieces of data: the volume of emissions your activities create (‘your activities’) and the impact those emissions have on the environment (‘emission factors’). First, confirm your activities. For example, how many kilometres did your employees drive in your company vehicles last year? How many kilowatt hours of electricity powered your plant? You’ll have much of this information to hand in documents like monthly fuel and power bills. Second, find your emission factors. An emission factor represents the amount of GHG an activity releases. The Ministry for the Environment (MfE) provides generic information factors, along with helpful workbooks and guides. For example, according to MfE, one litre of diesel used for transport emits 2.69 kg of CO2 equivalent. Third, do the maths. Units of activity x emission factor per unit = CO2e released. Your Scope 3 emissions These are the emissions in your value chain. They sit with your employees, suppliers and customers. Here’s an example of measuring the carbon in your supply chain. Say you want to estimate the emissions in Scope 3 Category 4 (upstream transport). Ask your suppliers: How much fuel […]

Improve your do! Review your processes to add value

From NZ Manufacturer, October 2023 -Ian Walsh, Partner, Argon & Co NZ All businesses deliver products and services according to their business processes. In the same way the central nervous system transmits instructions from the brain to various parts of the body, business processes provide the mechanism that turns objectives into action. So more effective processes make for more effective actions and, ultimately, better outcomes. The first step to improved processes is a clear and comprehensive understanding of the existing state of affairs. Do you know how well your current business processes perform? I recently asked a group of business owners what kind of service their help lines delivered. Out of the 30 that I asked, only one could tell me. None of the others had thought to pick up the phone to get an insight into their customers’ experience. A process map is the first step towards understanding how a process is performing – and how it might perform better. A process map provides a physical representation of the individual steps within a particular process, identifies who has ownership of each step, and may even incorporate timelines and other information. The act of creating a process map will itself likely highlight areas where resources are being wasted. We recently mapped a client’s enrolment process and discovered that it was possible for students to enrol in a course and graduate before fees were collected. It was no surprise that four staff were involved in chasing bad debtors! This waste of resources at the end of the workflow chain was a direct result of poor practices earlier in the process. Eight well known and well documented wastes are: Defects/Damage, Over Production, Non-Utilised Talent, Transport, Inventory, Motion and Extra Processing. Process mapping helps the whole team to understand the process […]

AMA announcement

From NZ Manufacturer, October 2023 Catherine Lye is the first Chief Executive Officer of the newly formed cross-sector incorporated society, Advanced Manufacturing Aotearoa (AMA). The AMA is industry driven and represents manufacturing across the country to help deliver business-led Advanced Manufacturing Industry Transformation Plan (ITP) outcomes. Catherine has been the Head of Manufacturing and Export Communities at the 7,100-member Employers and Manufacturers Association for the past two years. As part of that she has guided the Advanced Manufacturing and Industry 4.0 initiatives. Following a Bachelor of Commerce degree in Marketing and Finance, Catherine held numerous marketing and export-focused roles in local and international companies, rising to Chief Impact Officer for ExportNZ. AMA Interim Chairperson, Daryl French, says there were a number of high-calibre applicants generated from external advertising, but that Catherine quickly emerged as the best person for the role. “She has such a deep knowledge of the Advanced Manufacturing Industry Transformation Plan and understanding of the issues faced by the sector, as well as a practical understanding of advanced manufacturing technologies,” he says. “One of the keys to the success of this role is building and nurturing relationships with Government agencies, industry partners, research institutions and businesses to engage, influence and inspire them to collaborate for the best outcomes for the sector, and I have absolute confidence that she will deliver to that.” Catherine will work alongside the interim AMA Board, which includes: Daryl French, Interim Chairperson, and independent Director of four manufacturing companies. Rod De Spong, Chief Operating Officer, Douglas Pharmaceuticals Phill Patton, Senior Executive, Datacom Rachel Barker, Chief Executive Officer, Plastics NZ Glenn Hansen, Group Financial Controller, Vortex Engineering Group. Advanced Manufacturing Aotearoa (AMA) is the umbrella organisation leveraging business networks to implement ITP priorities. It takes an industry-led, collaborative approach to helping deliver initiatives that […]

Carbon emissions on the way down

Robert McLachlan, Professor in Applied Mathematics, Massey University. Ian Mason, Adjunct Senior Fellow in Renewable Energy Systems Engineering, University of Canterbury. It may have been largely overlooked in the election debates, but New Zealand’s greenhouse gas emissions are finally on the way down. Annual emissions of carbon dioxide from the burning of fossil fuels are the lowest since 1999 and the 12-month renewable share of electricity is back above 90% for the first time since 1981. The Ministry for the Environment has advised New Zealand is on track to meet the first (2022-2025) carbon budget. All this can be attributed to a range of factors, including fossil gas running low, full hydro lakes, high petrol prices and working from home. But climate policies such as the Emissions Trading Scheme (NZ ETS), the clean car discount and the Climate Emergency Response Fund (CERF) have made a significant contribution to the turnaround. Current decarbonisation policies have and will continue to deliver real emissions cuts, provided they remain in place. It is therefore disconcerting that the National Party plans to take $2.3 billion from the CERF (almost two-thirds of the fund’s mid-2022 balance) to pay for tax cuts. The argument that individual households will use tax cuts to make their own decarbonisation decisions is unsupported by evidence and lacks credibility. The Labour Party has also dipped into this fund, taking $236 million to pay for rebates for household installations of solar panels and batteries, and community energy schemes. These may produce some as yet unquantified emissions cuts. Government funding is working Allocations from the Government Investment in Decarbonising Industry (GIDI) fund to NZ Steel and Fonterra show direct and measurable avoidance of emissions. The installation of an electric furnace at NZ Steel to utilise scrap will save 1% (800,000 tonnes of CO₂-equivalent emissions, or tCO₂e) of New Zealand’s 2021 gross emissions. Support for Fonterra […]

Survey closing Friday 6th October: Call for construction sector insights

HERA is calling for participants in the construction sector to complete its survey on low-carbon design, to better understand trends around sustainable design skills and interests and the barriers and initiatives to more sustainable outcomes. As Aotearoa New Zealand moves towards a low-carbon economy, the building and construction sector accounts for 15-20% of our total carbon emissions. To assist the sector, HERA has embarked on a project to develop a design framework to reduce construction waste, lifecycle embodied carbon, and to enhance the circular economy for construction materials. A pilot will be done for low-rise buildings. You can find out more and complete this confidential online survey here: https://www.surveymonkey.com/r/JC6BSW5

Serious about reducing your carbon footprint? Read on!

Chances are you’re already talking about carbon – and climate change too. If not, you need to start! But when you’re a busy manufacturer, getting to grips with carbon can be daunting, we know. So in this first of two articles, Head of Carbon at thinkstep-anz Nicky Andrews explains how to get started and keep making progress. Nicky Andrews, thinkstep-anz Head of Carbon. Understanding carbon emissions What are carbon emissions? ‘Carbon emissions’ is shorthand for ‘greenhouse gas emissions’ (GHGs) – the gases that are trapping heat in Earth’s atmosphere and warming our planet. There are many types of GHGs. Common ones include carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). Why do manufacturers need to reduce carbon emissions? You’ll be helping to keep global warming to below 1.5°C and meeting the goals of the Paris Agreement. There are many good business reasons, too, for manufacturers to tackle carbon. How does my business benefit from reducing emissions? First up, you’ll reduce your risks. For example, if the government introduces a carbon tax, you’ll be prepared. You’ll strengthen your brand. Customers may already be asking what you’re doing to reduce your emissions. That’s because they (and their customers) are increasingly seeking lower-carbon products. You’ll strengthen relationships. For example, you’ll keep your investors happy if you manage your emissions (and their money) carefully. Your team will value your efforts too. Many people want to work for a business that takes climate action seriously. Finally, because winkling out carbon involves delving into everything you do, you’ll spot opportunities to reduce your costs. What are the three Scopes (types) of emissions? The international Greenhouse Gas Protocol is one of the standards that govern how organisations measure and reduce their carbon emissions. The Protocol splits carbon into three groups (Scopes). Diagram of the Scopes: thinkstep-anz, […]

NZ lagging with health and safety

By Adam Sharman, Senior Partner, dsifer A recent report by the Business Leaders’ Health and Safety Forum shows that New Zealand continues to lag behind the rest of the world when it comes to health and safety in the workplace. Of course, the $ value impact is just one impact resulting from workplace fatalities, injuries and poor health. In our work with organisations and industry bodies, we see that the top performing organisations consider workplace health and safety across an ecosystem of considered, human centric job design, environment design and culture & leadership dimensions. This is not something that can be fixed through a policy document of lines in an annual report. As a starting point, our analysis with organisations we work with identifies 1. Insufficient training, 2. Fatigue or burnout induced by poor work design and high levels of overtime, and 3. Cultural complacency as being the most significant contributors to poor health & safety performance. Of course, it is not as simple as just saying, let’s just fix these priority factors; for sustainable change, a data-driven approach to identifying and addressing their underlying drivers as an ecosystem should be applied. For example, organisations, especially manufacturers, are struggling to attract the number and calibre of talent they need to run their operations, leading to high levels of overtime as the current workforce picks up the slack. A data-driven approach to the analysis. For the highest impact, organisations should apply data analytics to three key dimensions of health & safety: Complete, accurate and timely data capture. The accurate and timely capture of H&S data forms the baseline of understanding the true picture of an organisation’s H&S performance. Whilst this may seem obvious, it is surprising how many organisations do not accurately capture data on their H&S incidents, beyond those that result […]

Enable smarter production lines with the right connectivity

Thanks to technological advancements that realise the potential of Industry 4.0, factory operators are investing more resources into the development of smart factories for enhanced operational efficiency. A recent study showed that the smart factory market is expected to grow 9.33% from 2021 to 2026. But before businesses can reap the benefits of smart factories, operators need to gain visibility of the production floor. This means they need to deploy more sensors and systems at production lines so that engineers can collect sufficient information, develop analytics, and ultimately take appropriate actions and improve efficiency. Developing a holistic view for your production lines requires different types of information. For instance, the production status of each production line informs you of how the line is performing and whether any potential or existing backlogs exist. By monitoring the real-time production process, you can improve your chances of eliminating potential downtime and enhancing productivity. In addition, tracking the operating condition of machines can help you arrange maintenance tasks without unwanted surprises. Furthermore, additional sensors can be deployed in production lines to collect temperature and humidity information to help minimise the likelihood of interruptions due to environmental factors. No matter what kind of information you are planning to collect to achieve the goals of your ideal smart factory application, enabling smooth communication between production lines and the control centre can present major challenges for engineers. Without a reliable connection and a solid network implemented between remote sites and the control centre, operators cannot receive complete and accurate data for comprehensive planning and optimising operational efficiency. Here are some suggestions you can consider when enabling connectivity for your production lines: Evaluate Your Connectivity Requirements Thoroughly When enabling connectivity for your production lines, you need to know what communication interfaces and protocols your field devices use, as well […]

The importance of operational technology cybersecurity

Rockwell Automation has partnered with cyber-physical systems protection company, Claroty, to release a white paper on safeguarding Australia and New Zealand’s industrial systems. In the face of an ever-growing climate of cybersecurity attacks, operational technology (OT) security specialists bear the weight of safeguarding Australia and New Zealand’s most critical infrastructure. Ensuring uninterrupted essential services such as energy, food and beverage, healthcare, data processing, and mining industries demands utmost vigilance. However, the recent Rockwell Automation and Claroty survey of 42 C-suite executives and heads of security exposes a concerning truth – many OT systems remain exposed and vulnerable. “A lot of the challenges organisations face today can be traced back to the fact that OT has traditionally been operated and managed as a separate entity from conventional information technology (IT) environments,” says Anthony Wong, regional director, South Pacific, for Rockwell Automation. The survey bears this out with 26% of respondents admitting that there is a low or medium level of collaboration between OT and IT, and the two units could do better. “Increasingly, cybercriminals are exploiting sometimes lax OT security as springboards to launch a wider attack across an organisation,” says Wong. For example, a recent cyber-attack on a major Australian meat packing company, forced the temporary shutdown of 47 sites across Australia and a ransom demand of $14.2 million. Key Findings: A Wake-Up Call 65% of respondents detected at least one OT-related cybersecurity incident in the last 12 months. 60% of cybersecurity leaders believe their budget is not enough to protect their operations 29% of respondents were concerned that an OT security incident could disrupt their production. 26% of respondents admitted having low or medium levels of visibility into the operations of their network. 26% of respondents worry that attacks could compromise the safety of their employees or others Just […]

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