Business News

What does ‘sustainable manufacturing’ actually involve?

In April issue of NZ Manufacturer www.nzmanufacturer.co.nz we talk with Emily Townsend, Services Director, thinkstep-anz. Emily’s spent her career working in manufacturing, and with manufacturers, in New Zealand and the UK. Emily, what does ‘sustainable manufacturing’ mean to you? It’s become a buzzword but I think it’s about change – incremental and major. Incremental change involves things like producing more efficiently and ensuring products create less waste at their end-of-life. Major change is about powering factories with renewable energy and moving to responsible procurement to avoid modern slavery in supply chains. People need manufactured products and it’s unrealistic to think those needs will go away. So the challenge for manufacturers is to reduce the impacts of your products. When did you get into sustainable manufacturing? At the start of my career (though it wasn’t called sustainability then!) In my first role I supported a bid to supply to the London Olympics. I had to find out what our business was doing to meet their criteria, then coordinate and communicate our work. I also helped measure the carbon footprint of the M25 motorway that circles London. I looked at options like recycled asphalt to reduce the footprint and produced a tool for the industry to assess options. I then worked in roles in lean manufacturing, measured products’ carbon footprints and reported on sustainability performance. When I came to New Zealand in 2015 I took up a sustainability role with Downer. (Sustainability was a term by then!) I joined thinkstep-anz in 2018. What does your current role involve? I support our thinkstep-anz team to deliver sustainability projects to clients, including many manufacturers. Are we meeting technical best practice? Delivering what our clients need? Linking our services for greatest impact? How do manufacturers benefit from becoming more sustainable? You’ll understand your product, […]

Unlocking Innovative Productivity: The Power of Sales & Operations Execution in Manufacturing

From April issue of NZ Manufacturer www.nzmanufacturer.co.nz -Chris Foord and Natalie Russell, Argon & Co In a manufacturing business, where supply chains intertwine and customer demands fluctuate, Sales & Operations Execution (S&OE) emerges as a pivotal force. S&OE, a dynamic process that bridges the gap between strategic planning and day-to-day operations, sees the rubber hit the road in a manufacturing enterprise. At its core, S&OE entails aligning sales forecasts, production plans, and operational capabilities to meet customer demands efficiently while optimising resources. This collaborative process not only ensures smooth operations but also holds the key to unlocking productivity within the manufacturing realm. S&OE is typically a weekly cross functional process to manage short term changes to the Sales & Operations Plan (S&OP). Whereas S&OP looks forward from 3 to 18-24 months, the purpose of the weekly S&OE cycle is to manage exceptions in the near term 1 to 13 week horizon. Exceptions happen, for both good and not so good reasons, but you need react to them effectively and efficiently looking across the end-to-end supply chain. S&OE manages change through a controlled, collaborative process that seeks alignment to agreed business guidelines and parameters to deliver the best outcome for your customer and your business within the resources available to you. It reduces noise, conflict, confusion and ultimately builds cross functional understanding and alignment. In essence, S&OE is the heartbeat of operational agility in manufacturing. It entails a granular examination of sales forecasts, production capacities, inventory levels, and distribution channels to synchronize the flow of goods from production to delivery. By integrating data from various sources and leveraging advanced analytics, manufacturers gain real-time insights into market trends, demand patterns, and operational bottlenecks. This enables them to fine-tune production schedules, allocate resources effectively, and swiftly adapt to changes in customer preferences […]

Transforming industry– exploring the application of advanced manufacturing in Aotearoa New Zealand

By Dr Troy Coyle, HERA CEO Recently, HERA visited Australia with Manufacturing Minister Hon Andrew Bayly and heavy engineering industry representatives to better understand how Australia is responding to the “Industry 4.0” revolution. This visit included a tour of both the University of Wollongong’s Facility for Intelligent Fabrication (FIF) and the $81 million Australian Composite Manufacturing Co-operative Research Centre (ACM CRC). Gaining access to these impressive facilities demonstrated how the use of cutting-edge technology is revolutionising manufacturing in Australia and its potential to do the same in Aotearoa. It was also clear that long-term funding (in the case of the CRC program, which is ten-year funding) and industry-led research are key to successful industry transformation through the adoption of these technologies. We were also proud to see HERA acknowledged as a key partner in several of the ACM CRC’s projects, including the application of AI to quality systems, circular design of composite materials, technical and scientific barriers for robotics and automation in composite manufacturing, and waste management in the composite industry. Industry 4.0 – also referred to as the fourth Industrial Revolution, is a broad term for new technologies and data such as cloud computing, the Internet of Things (IoT), and artificial intelligence. The future of manufacturing will require widespread adoption of Industry 4.0 technologies to transform how goods are made by optimising processes and driving the potential for unprecedented efficiency and productivity gains. These advances have been a core focus for HERA to understand in order to drive the transformation of Aotearoa New Zealand’s manufacturing sector and its future readiness. We want to see our sector at the cutting edge of these developments, so we have been focused on developing our facilities and supporting research and services to help our manufacturing and construction sectors understand the potential for uptake. Knowing […]

Empowering Frontline Leaders: A Key to Boosting Productivity in New Zealand’s Manufacturing Sector

From April issue, NZ Manufacturer www.nzmanufacturer.co.nz -David O’Connor, Commercial Manager, The Learning Wave Much has been written about the need for New Zealand manufacturing businesses to increase productivity to remain competitive internationally, and subsequently, the benefits that adoption of new digital technologies and smart factories can deliver to NZ manufacturers. It is no great secret that the sector is in the midst of tough times. Many businesses are reporting having to cut back on shifts and overtime hours, pushing out innovation projects, and reducing their training spend to help manage costs and profitability. Strong leadership is the key ingredient of any high-performing organisation. Equally, a lack of it can spell disaster. A quick search of Google tells us the same thing- they lead upwards of 80% of the workforce, and their performance directly impacts their team’s productivity, quality, engagement, innovation, customer service, and safety. Getting it right is critical. The role of the frontline leader cannot all too easily be undervalued. Being a frontline leader isn’t just about keeping the production line running, and meeting today’s production targets; it’s about inspiring, motivating, and guiding their teams to perform better and juggling the ever-changing demands of staff, health and safety, quality, reporting and of course production and operational efficiency targets. No easy feat. The return on investment is clear – according to a 2022 Harvard Business Review article, organisations with high-quality leaders are 13 times more likely to outperform their competition. And yet with statistics like that, only 12% of companies surveyed in the recent 2023 Global leadership Forecast were confident in their leadership bench. Building a strong leadership bench is the obvious answer to unlocking productivity and performance. An investment in learning pays dividends. In a recent article in MBA news, the Forrester research report stated that one number stands […]

Information and operational technology a crucial strategy

From April issue of NZ Manufacturer www.nzmanufacturer.co.nz Adam Sharman, Senior Partner, Dsifer As manufacturers look to technology to support the productivity, efficiency and innovation of their operations, the convergence of Information Technology (IT) and Operational Technology (OT) stands out as a crucial strategy. As at 2024, the OT market is expected to expand at a CAGR of 8.69% and the solution options available to manufacturers to digitise their operations continues to grow. Whilst OT solutions provide significant benefit to manufacturers, it is the integration of OT and IT across the organisation that drives the highest value for these soluions. Historically, IT and OT have operated in silos, serving distinct functions within organisations. However, as Industry 4.0 reshapes manufacturing processes, the synergy between these two domains has become imperative for staying competitive and maximising efficiency. The integration of IT and OT involves breaking down the barriers between these two domains to create a unified ecosystem that leverages data from both operational and informational sources. This integration enables manufacturers to optimise production processes, enhance product quality, reduce downtime, and ultimately drive profitability. One of the primary benefits of integrating IT and OT is improved visibility and transparency across the manufacturing operations. By connecting OT devices to IT systems, manufacturers can gather real-time data on equipment performance, production rates, and resource utilisation. This comprehensive visibility enables better decision-making, as managers have access to timely and accurate information to identify bottlenecks, anticipate maintenance needs, and optimise workflows. Furthermore, the integration of IT and OT facilitates predictive decision making. For example, predictive maintenance, a proactive approach to equipment upkeep that relies on data analytics and machine learning algorithms to anticipate potential failures before they occur. In order to successfully integrate their IT and OT systems, organisations should consider the following key dimensions: Understand the Business […]

Australia and New Zealand working together

Editorial April issue NZ Manufacturer www.nzmanufacturer.co.nz In late March, the Minister for Manufacturing, Andrew Bayly, spent a week in Australia, where he met with four ministers in the Australian Federal Government, including Senator Hon Tim Ayres, the Assistant Minister for Manufacturing and Assistant Minister for Trade. They discussed opportunities that exist for our two countries to work together, to grow manufacturing productivity on both sides of the Tasman. He also met with Maria Vamvakinou MP and Scott Buchholz MP, who co-chair the Parliamentary Friends of Manufacturing group in the Australian Parliament. This provides a non-partisan forum for parliamentarians to meet and interact with businesses, unions, industry and advocacy groups to help support and strengthen Australia’s manufacturing industry. Andrew Bayley also joined up with a delegation of manufacturing business leaders from New Zealand keen to get a better understanding of emerging advancements in research in Australia, particularly how they relate to advanced manufacturing, and how these could be transferred to industry here in NZ. Meanwhile, In Australia, it has been announced that the Albanese Government intends to create a Future Made in Australia Act. To spur investment in clean energy technologies and secure economic opportunity and growth for Australia. The minister at work. Australian investment in R&D has reached a 30-year low, only spending 1.68% of GDP on R&D. Meanwhile, competitors are growing their R&D spending, with the USA, Japan, Germany and many other developed countries spending over 3% of their GDP on R&D each year. Australia needs an immediate and sustained increase in R&D funding to make sure Australia doesn’t get left behind. Australian research and innovation will be the driving force behind their future prosperity. Australia cannot afford to neglect R&D any longer. Which, of course, brings me back to our situation in New Zealand. Andrew Bayly says he […]

Lessons in collaboration from across the Tasman

From April issue NZ Manufacturer magazine www.nzmanufacturer.co.nz Andrew Bayly, Minister for Manufacturing In my February article, I announced the first meeting of my Manufacturing Productivity Advisory Group, a forum for business leaders keen to enable a brighter future for New Zealand’s manufacturing sector. I am pleased to say this group has already met again. Chaired very capably by Sarah Ramsay, chief executive of United Machinists and chair of the Advanced Manufacturing Aotearoa council, there are key themes emerging, which most people in the industry will already be well aware of. That education is needed to change the perception of the industry in people’s minds, especially those of parents with children who are contemplating their future careers and who think ‘manufacturing’ is still a dirty world. That our research centres focus on novel innovation without considering the manufacturing capabilities needed to produce them. That procurement for infrastructure is skewed towards lowest-cost international providers, thereby discouraging domestic suppliers from ramping up their manufacturing capability. And, of course, that investment is required in automation and Industry 4.0 technologies which will help drive productivity improvements. We are now in the process of finalising the finer elements of these initiatives that will help inform future policy announcements, which you will hear about in due course. In late March, I spent a week in Australia, during which I met with four ministers in the Australian Federal Government, including Senator Hon Tim Ayres, the Assistant Minister for Manufacturing and Assistant Minister for Trade. At the University of Wollongong Facility for Intelligent Fabrication. This was the second time I had met with Tim and I was keen to ask him how the Australian manufacturing sector organises and funds itself and its activities. We also discussed how the Australian Government has managed to secure successful partnerships with the country’s […]

What do we do about manufacturing?

From April issue of NZ Manufacturer www.nzmanufacturer.co.nz By Brett O’Riley, Chief Executive EMA *Brett O’Riley is stepping down from his role at EMA in June. What follows are his present reflections on manufacturing in New Zealand. Our manufacturing sector is struggling, and it pains me to say it. The release of this month’s Performance of Manufacturing Index (PMI), a global measure of manufacturing activity, shows manufacturing activity in New Zealand has been shrinking for the past 12 months. While this might not be a surprise given the global economic slowdown, what is concerning is that manufacturing in New Zealand is underperforming most other major economies. Other countries have taken very deliberate steps to modernise and strengthen their manufacturing sectors; from an aggressive Accelerated Depreciation business taxation regime for investing in new hardware and software in Singapore, to the massive Inflation Reduction Act in the United States. Manufacturing is critically important to the New Zealand economy, and it is important we get the sector functioning as effectively as possible. The sector contributes more than $23 billion to our economy, or about 10% of GDP. It accounts for 60% of our exports and employs 12% of our workforce, with the potential to grow those metrics. Manufacturing isn’t just concentrated in one part of the country. It plays a critical role in our regional economies, accounting for more than 10% of jobs in almost every part of the country. Every day, more than 220,000 Kiwis go to work in manufacturing businesses in Te Tai Tokerau, Southland and everywhere in between. Therefore, it is no surprise that when manufacturing isn’t doing well, our economy doesn’t do well. This is demonstrated by the latest economic numbers, which saw the economy shrink off the back of a sharp fall in manufacturing activity. But it’s not […]

Women in Business: Hildy Kovacs, co-owner, Kovacs Design Furniture

Tell readers just what it is you do? My brother Johnny and I own the furniture manufacturing business, Kovacs Design Furniture. We still make all our furniture in our New Zealand factory based in Christchurch and our tag line is “Made. Right. Here.” Which the team is immensely proud of. My main role is as our furniture designer. Taking an idea through the concept stage to the prototype stage, completing the initial costings and making it ready for production release. However, my typical workday could also cover marking, sewing, quality control, photography, marketing, sales, and production management. Designing furniture – is it a passion of yours? It wasn’t but is now. It started off with me learning all the different manufacturing aspects of the business, so I have developed a really good understanding of how things go together and what is important in creating a product that not only looks great but has to be comfortable and built to last. I really started designing furniture to prove to myself that I could do it and from that it has become my passion. How long have you been in the family business? I started doing small tasks with my brother for my father like making buttons from as young as I can remember. So, I guess I was born into the industry. However, I have worked fulltime in the business for the last 44 years. What is the satisfaction you get from being involved in a family business? Designing furniture where every piece is unique with its own handwriting is hugely challenging. They all have different prerequisites one must overcome for the product to be aesthetically pleasing, comfortable and viable. I am constantly learning and getting it right is the biggest buzz ever. Where does Kovacs sit in the furniture scheme […]

Dave Pham_Senior Solutions Architect at Yubico

Tips to maximise your consumer-facing passkey implementation

Dave Pham, Senior Solutions Architect, Yubico Passkeys have taken the online security world by storm since their inception in mid-2022, even if the underlying technology can technically be traced back to FIDO2 and its breakthrough onto the world stage in 2018. Popularity has no doubt exploded due to their widespread adoption by the world’s largest tech companies – who also happen to be the most used identity providers collectively – as millions of users begin to make the shift. They are seemingly heading towards becoming the new de facto standard of secure authentication for both apps and websites alike. This is a massive leap forward for account security considering the underlying fundamentals are grounded in cryptography, which makes them extremely resilient to hackers and represents an approach that is magnitudes more secure than the traditional password. Although the distinction between passkey and FIDO2 credentials is extremely subtle, and many will often use the terms interchangeably, it should be clarified that passkey can refer to both classic FIDO2 credentials that are strictly device-bound (such as with hardware security keys) or syncable credentials that reside across multiple devices, generally via a cloud service or identity provider. But regardless of whether or not they are device-bound or syncable, passkeys are still a relatively new concept, and many software developers and security experts are scrambling to understand how to best integrate them into existing services and products (especially for those transitioning from password-based implementations). The nuances and best practices that lead to an optimised flow within a robust passkey implementation are still being fine tuned, and the most seamless UX possible may not yet be fully realised. While the passkey landscape is nebulous and still evolving, the aim of this post is to highlight a few staple considerations to get the most out of any consumer-facing passkey implementation and guide […]

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