Industry 4.0

Productivity is the only game in town!

From July issue NZ Manufacturer www.nzmanufacturer.co.nz Ian Walsh, Partner, Argon & Co It is great to see that finally we are talking as a nation about the need to be more productive. Our poor performance in productivity terms is not a new issue or problem, but given the current economic environment, it has become clear to everyone that we have a significant gap to countries with which we compare ourselves. The consequences of this are significant, with many young New Zealanders leaving for foreign shores for better pay, conditions and quality of life. This problem has been disguised for decades by global financial crises, pandemics, earthquakes and media misdirection (“We are the most liveable country!”, “Auckland is one of the top 10 cities!” etc.). Like climate change it has been possible to ignore for a long time. However, most of us are aware that our infrastructure is creaking. We can’t invest in health education, police, transport and other programs to the extent that we would like to, as we can’t afford it. Productivity is essential for economic growth, competitiveness, profitability, job creation, resource efficiency, and work-life balance. Focusing on productivity improvements at individual, organizational, and national levels can lead to numerous benefits and contribute to overall prosperity. I have been to many business meetings, and the focus for any improvement drive is return on investment – they are asking whether investing in an activity makes the business more profitable, more competitive and ultimately whether it will result in better return for shareholders, so they can invest in future programs to improve the product or service, grow the business and offer better products or services. The same is true at a national level, the government can only spend what the economy generates (balanced budgets and low debt). Profit (or in more […]

Clearing the Way: Accelerating Industry 4.0 Adoption through Global Benchmarking

From March issue, NZ Manufacturer www.nzmanufacturer.co.nz Adam Sharman, Senior Partner, Dsifer Introduction As organisations look for productivity gains, competitive advantages in agility scalability and sustainability, more and more are looking to technology to support, augment or accelerate their operations. A recent report from Westpac identified that, whilst digital tech adoption is growing, New Zealand’s manufacturers have room to adopt these technologies and boost their productivity and the contribution of the manufacturing sector to New Zealand’s GDP. Overview & Adoption Through our work with manufacturers in New Zealand and the UK, it is clear that, whilst most organisations understand the value and the imperative of digitisation, the roadmap to achieve it can be overwhelming. A quick Google search can pull up examples like Ocado’s lights-out warehouses and it can be a seemingly impossible task to achieve that level of digitisation Most companies both globally and locally are grappling with the concept of Industry 4.0 and the value it could bring for them. For these companies, questions such as What is Industry 4.0, and how can it benefit my company? Where should I start? What are my gaps today and where are the opportunities tomorrow? remain unanswered. To help organisations start to unpick these questions, there are tools to help cut through the complexity and develop an industry 4.0 transformation plan that is specific to their business. In this article we will provide an overview of a tool that is gaining traction around the world. The Smart Industry Readiness Index (SIRI). The Smart Industry Readiness Index (SIRI) Framework and an accompanying Assessment Matrix tool were therefore developed to help organisations assess their readiness and prioritise the highest impact interventions in industry 4.0 adoption. The SIRI Framework covers the 3 core building blocks (Process, Technology, and Organisation) critical to achieving future-ready facilities, and […]

December issue NZ Manufacturer – The Year in Review

Our annual ‘The Year in Review’ December issue will be out soon. It includes stand-out commentary on achievements from some of our manufacturing companies, reflections on the year winding down and the new one ahead. Challenges that face us and suggestions for achieving success. There were a lot of articles competing for inclusion that could not be accommodated within the pages. Meaning the stories of many achievers – you know who you are – need to be re-read by revisiting monthly issues of the magazine. If you or your company are not receiving the magazine, nor on the subscriber database and want to receive December issue, email publisher@xtra.co.nz and we will get a copy to you.

Sean Doherty on Advanced Manufacturing

From November issue of NZ Manufacturer www.nzmanufacturer.co.nz Sean Doherty is an Industry 4.0 Product Owner at Callaghan Innovation. How can Advanced Manufacturing take NZ forward? Advanced manufacturing involves the use of technology to supercharge the manufacturing sector. Already an incredibly pivotal part of our nation’s economy and operations, there is real value to be found in unlocking the full potential of our manufacturers. The implementation of smart products and processes such as artificial intelligence, robotics and 3D printing are just some of the key ways we can look to automate, digitise and further develop operations. New Zealand hopes to reach the level of manufacturing represented by Industry 4.0 – a blueprint made up of a series of government initiatives from around the world. As a nation, reaching this goal would propel the nation forward in several critical ways. Manufacturers can harness new technologies to revolutionise their products and processes, effectively increasing their quality of output, and driving productivity forward. Economically, this creates an increase in profitability, enhances market competitiveness, and helps to generate higher-value jobs by automating lower-level tasks. Fostering innovation, this strengthens our supply chain resilience, and reduces our dependence on foreign sources. We can also work towards realising our full potential as a ‘clean, green New Zealand’, by encouraging resource-efficient, environmentally friendly practices. We are not a country rich with natural resources, except for dairy, horticulture and agriculture. We once made cars and TV sets. When that stopped it couldn’t be started again. So where can Advanced Manufacturing help to turn things around? Market demand, competition, global economic conditions and access to raw materials play crucial roles in the ability for a country to operate in a highly competitive industry – which is largely why dairy, horticulture and agriculture are particular strengths for New Zealand. However, advanced […]

Propelling Smart Manufacturing in APAC to the next frontier with AI

Attributed to: Leonard Lee, President APAC, Beyond Limits As one of the global hubs for manufacturing, Asia Pacific (APAC) accounts for about 48.5% of the worldwide manufacturing output. In the region, opportunities are ripe for smart manufacturing to move to the next level, largely due to the well-developed manufacturing ecosystem and government support. Spending within the artificial intelligence (AI) market is also expected to grow to US$49.2 billion in 2026, with a compound annual growth rate (CAGR) of 24.5% from 2021 to 2026. The increased investments are expected to fuel the growth of automation through the use of technologies such as robotics and control systems, thus enhancing the performance metrics of the production processes. For APAC manufacturers, the most pressing challenges in the implementation of Industry 4.0 include the reluctance to embrace new technology, a shortage of skilled personnel to oversee its implementation, as well as difficulties in measuring the ROI of smart manufacturing digital solutions. There is also a sense that competitive differentiators are rising in importance. Manufacturers know they must step up on their digital investment, as those companies with higher digital maturity have shown greater resilience and are better able to adapt to supply chain challenges with increased supply chain visibility. Providing manufacturers with a competitive advantage AI has already transformed many enterprise processes, and the use of AI technology is now treated as a business imperative. Manufacturers are exploring ways to effectively utilise their existing data and insights, boost efficiency, reduce expenses, and achieve operational advantages. However, conventional AI technology that manufacturers still rely on acts as a “black box” that creates models from data without providing any explanations. To allow manufacturers to reap the full benefits of technology, they must pivot to Cognitive AI. Cognitive AI acts as a “glass box”, providing detailed justifications for […]

EMA & Industry 4.0: Company Profile -RML

RML has been providing high-performance innovative robotic and automation solutions to their customers for the past 40 years. From robotic automation systems, cartoning, case packing, conveyor solutions, custom assembly, palletising, lidders, closers and components. RML has worked with large and small production lines throughout New Zealand and Australia. Problem or Opportunity As a machine builder, RML have identified key issues which were stopping their customers from maximising the value of their investments. Primarily, it was difficult to be connected to machines from outside of the customers’ plant. This led to site visits being required to provide customer support and delivering upgrades that increased customers productivity. The lack of network connectivity also meant that machines were generally standalone, with limited integration with the customers business systems, thus not delivering the performance data to the teams that are. The Solution RML identified that current PLC technology is great for controlling plant, but is lacking in the ability to fully control machines and harness the full potential of Industry 4.0. To make their products Industry 4.0 ready, RML moved to using Industrial Controllers (IC’s) about six years ago. IC’s are similar to a Windows computer. They have the ability to run real-time control and allow a suite of additional programs to be installed, beyond simple machine controls. This has also helped them bridge the common access or security issues which machine builders face with PLCs. Using IC’s, it is now easier to support customers in real-time while ensuring security needs are met. The IC’s allow for the remote adjustment of settings to help when troubleshooting, allowing remote support and troubleshooting, and allowing RML to train new operators online. This ensures machines are back up and running quickly, effectively maximising production. Also of benefit is the ability to collect real-time data using the PLC […]

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Endeavour Fund awards more than $10m to HERA to build world-leading construction sector

HERA, the heavy engineering research association, has been successful in the 2022 round of the prestigious Endeavour Fund, which supports important scientific research projects seeking to address some of our biggest challenges. HERA has been awarded a grant of close to $10.3 million to support a four-year research project focused on transforming the construction sector in Aotearoa New Zealand using Construction 4.0 approaches. Fundamentally, it will improve productivity for the construction sector more broadly, with key outcomes including better economic performance, building and infrastructure affordability, and a larger workforce which is more skilled, innovative, and digitally literate. HERA CEO Troy Coyle says, “Our research team is both excited and thankful that the Science Board, assessors and the Minister of Research, Science and Innovation appreciate the significant contribution this project will make to the sector and New Zealand economy. “This programme not only addresses key challenges identified by our members and wider industry, but will be world-leading in creating data-driven decision-making for the future of construction. “Currently there is a profound limitation in the way we perform construction in Aotearoa New Zealand. Complex decisions are being made based on simple data inputs and in linear silos with little inter-connection or data-derived decision support. “This project will improve design to construction (and beyond) by bringing together industry and a team of global experts rigorously vetted, who will use complexity science to build upon developing nascent global Construction 4.0 knowledge. “We also recognise the Science Board’s focus on Vision Mātauranga as it is something that aligns strongly to our own commitment in this space. We see this as an opportunity to bring a more holistic approach to the key components of the program of Industry 4.0, sustainability and mātauranga Māori. Our linkages internationally, to industry, and to existing research programmes will ensure project […]

Q&A Holger Heinzel, HERA

Digitisation and new technologies are having a profound impact on every facet of the manufacturing industry. As has been discussed in this forum, Industry 4.0 is upon us – enabling and also pushing businesses to collect and analyse data to streamline and improve the efficency of their systems and processes. The new tech gives so much – freed-up time and productivity boosts, less waste, far better and faster insights for a business to improve. We appreciate, though, that innovation requires investment and this is a time when many organisations are maintaining a hawk-like eye on capex and opex. The good news is that it’s worth it: HERA’s 2021 report in collaboration with BERL modelled the potential economic impact of Industry 4.0 on the New Zealand construction industry and found that gains over the next five years could be as much as $8 billion, and a heartening $4 billion at the moderate optimistic forecasting. And that is only for that part of the NZ economy. The potential for individual businesses and the wider industry is clear if we can take advantage of it. To that end, we are focusing on tools and methodologies to help members and other manufacturing organisations with the transition to Industry 4.0. A good starting point for company is to establish where they currently sit at, as a starting point for their transformation journey or how far they might have already come. What is the SIRI Assessment? Siri, short for Smart Industry Readiness Index, is an Industry 4.0-focused global assessment scheme. It was developed out of Singapore and is available to manufacturers in New Zealand. In the past four years, over 300 companies worldwide have used the SIRI Assessment to formally evaluate their facilities and processes and kick-start their Industry 4.0 transformation. The tool works for a wide […]

Technologies enable smart factories to self-adapt

By Jarrod Kinchington, Infor ANZ vice president and managing director Judging by the headlines, continuous logistics issues, continued pandemic restrictions, and rising prices for raw materials will mean that manufacturers have their work cut out for 2022. In addition, the drive towards sustainability is adding pressure to readjust the manufacturing footprint. Most manufacturers are still stuck with a geographic footprint, which was driven by labour arbitrage around the globe, rather than by factors such as closeness to customers or ecological concerns. To increase efficiency, many producers have started to implement Industry 4.0 technologies. Industry 4.0 came with the promise of a smart factory being profitable at the production lot size of one unit. The concept was introduced at the brink of the millennium change with the introduction of cyber-physical systems to share, analyse and guide intelligent actions for various processes in the industry to make the machines smarter and to lower downtime. Analytics can also be used for other aspects like logistics, demand forecasts, production scheduling and quality control, capacity utilisation and efficiency boosting. But we still stand at the beginning for leveraging the true potential of Industry 4.0. Smart technologies offer no less than the possibility to redesign the global manufacturing footprint, to position factories closer to markets, reduce logistics nightmares and increase visibility of the ecosystem partners, including suppliers and customers. There are six important ingredients for a strategy to create the future-proof smart factory: Customers increasingly demand highly personalised products as well as an enhanced customer experience. Manufacturing companies adopt highly agile cloud-based solutions to gain the ability to increase individualisation, service additions, and serve higher flexibility requirements. The need to reduce delays and transport costs, as well as the drive toward a more sustainable production and the imperative to reduce the distance to the physical end-consumer […]

Industry 4.0 technology proposed to ACC to augment and improve employees lives through use of wearable tech

-Greg Buckley, Innovation and Transformation Architect, HERA Late last year HERA, with industry partners, submitted an expression of interest to ACC’s Injury Prevention Fund, which invited EOIs specifically relating to innovation to reduce harm and injury in the workplace associated with psychosocial and mental health risks. We have since engaged further with ACC and submitted a full proposal explaining how these risk factors could be reduced in sectors relating to our organisation through the use of Industry 4.0 technology. The potential employee wellbeing and financial benefits from better management of psychosocial risk factors in higher-risk workplaces (such as construction and heavy engineering) are massive. In 2020, approximately 170,000 workers were employed in the New Zealand construction sector, with the ACC-related cost of the construction sector totalling nearly $450m over the past three years. HERA currently has 250 member organisations with around 25,000 workers in total, which equates to an approximate ACC cost per annum of nearly $22m. What is HERA, with its partners in innovation, proposing to introduce with the support of ACC? A three-year programme of work, including ongoing research, which involves the deployment of wearable technology to track biological and physiological markers among employees who work in fields where heavy machinery is operated. The programme is aligned with emerging research on the link between the stress response and bio-markers that indicates an individual’s propensity to psychosocial risk and negative mental health impacts. By measuring health vitals such as heart rates and sleep cycles – as well as other bio-markers associated with stress – the wearable technology can track individual responses and overlay this data with survey data on mental health submitted by each employee. It is an example of using wearable tech to gather and marry up data to optimise health and safety in the workplace. If someone […]

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Industry 4.0