Productivity

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 […]

If we’re all so busy, why isn’t anything getting done?

From MZ Manufacturer magazine, March 2024 Have you ever asked why it’s so difficult to get things done in business today—despite seemingly endless meetings and emails? Why it takes so long to make decisions—and even then not necessarily the right ones? You’re not the first to think there must be a better way. Many organisations address these problems by redesigning boxes and lines: who does what and who reports to whom. This exercise tends to focus almost obsessively on vertical command relationships and rarely solves for what, in our experience, is the underlying disease: the poor design and execution of collaborative interactions. In our efforts to connect across our organisations, we’re drowning in real-time virtual interaction technology, from Zoom to Slack to Teams, plus group texting, WeChat, WhatsApp, and everything in between. There’s seemingly no excuse to not collaborate. The problem? Interacting is easier than ever, but true, productive, value-creating collaboration is not. And what’s more, where engagement is occurring, its quality is deteriorating. This wastes valuable resources, because every minute spent on a low-value interaction eats into time that could be used for important, creative, and powerful activities. Three critical collaborative interactions Decision making, including complex or uncertain decisions (for example, investment decisions) and cross-cutting routine decisions (such as quarterly business reviews) Creative solutions and coordination, including innovation sessions (for example, developing new products) and routine working sessions (such as daily check-ins) Information sharing, including one-way communication (video, for instance) and two-way communication (such as town halls with Q&As) Decision making: Determining decision rights When you’re told you’re “responsible” for a decision, does that mean you get to decide? What if you’re told you’re “accountable”? Do you cast the deciding vote, or does the person responsible? What about those who must be “consulted”? Sometimes we are told input will be reflected in the […]

New Zealand manufacturing – Connecting for prosperity

Paul Clark, Industry Economist, Financial Markets, Westpac Institutional Bank It’s no secret that New Zealand’s manufacturing sector is struggling. Sales adjusted for inflation have been in negative territory for a while, while the much-watched PMI suggests that sector very much in the “bust” part of the cycle. And with the economy set to slow further, there are few signs of an imminent turnaround. Manufacturers have responded by going back to what they know. They’ve cut jobs, cut hours, frozen new hirings and clamped down on overheads. Some have rationalised product lines and canned projects, especially those that don’t deliver immediate benefits. Others have looked at how to retain their best customers, as well as coming up with ways to hold on to critical staff. These measures mostly represent a short-term fix. They are critical for survival. But they also ignore a fundamental problem facing the sector and that relates to its vulnerability to changes in the economic cycle. Fixing that is about increasing the resilience of the sector. There are two areas where manufacturers should focus on. The first is boosting the resilience of their supply chain chains – if they stop working or are significantly disrupted, manufacturers are in big trouble. The second is on operations – an inability to maximise operational efficiencies implies a loss of competitiveness which could prove terminal. Thankfully, advances in digital technology offer a way forward. That includes state-of-the-art software that allows for better communication, Cloud computing for more efficient data storage, artificial intelligence (AI), and data analytics to help make better decisions, as well as robotics, sensors, and Industry Internet of Things (Iiot) to automate processes. These technologies are making it possible for manufacturers to see every part of the supply chain, and track products in real time as they progress along the […]

International Women’s Day: Breaking barriers: Paving the way for women in tech

“We’re in 2024 and still talking about women in the workplace. The time is ripe for change. Only then will the tech industry truly be able to excel.’ Isabel Naidoo, Chief People Officer at Wise Despite progress and international efforts in diversity and inclusion, the technology industry remains a male dominated space. We still see imbalances from graduate intakes, through to seasoned executives, and it’s a trend that’s yet to significantly shift. With only 27% of the New Zealand tech industry made up of women, it’s apparent that more needs to be done to attract and retain female talent in the industry. For women who do choose to pursue a career in the tech industry – they may be up against a range of problematic challenges: from pay inequity and a lack of representation, to gender bias and the inevitable act of balancing a career with family. And sadly, for a lot of working women – some of these challenges span far beyond just the tech sector. While some steps toward closing the gap have been made – truly meaningful progress is happening at a glacial pace. According to The World Economic Forum, it will take more than 150 years to close the global economic gender gap. The world is currently losing out on approximately $12 trillion USD of global GDP, and frankly – we cannot afford to wait over a century to close the economic gender gaps while still calling on more women to join the tech-force. It’s crucial the tech industry takes on more responsibility to foster an inclusive culture where women and other underrepresented talent are supported and empowered. Strategies for taking control and driving progress It’s not just enough for women to consider what’s in their best interests, we need to be a part of an […]

Emotional Intelligence Campbell, Mel NEW

International Women’s Day: Emotional intelligence – the secret weapons women are using to drive change in construction

We speak to three women who are shaking up the construction industry with new ways of thinking. When Melissa Campbell visited a major construction project in central Auckland it was a team of female electricians who were the life and soul of the work site. “They were spectacular,” says the Health and Safety Manager from leading construction company LT McGuinness. “They had the best sense of humour, they worked hard, and they were personable, intelligent and strong – all the things you want from someone that you work with. We need more of that.” This crew of female sparkies are an example of how the growing number of women in construction are bringing a new way of thinking and a different perspective that is driving a culture of change in the traditionally male-dominated industry. And, believes Campbell and other influential women in the construction and trades sectors, this thinking and a woman’s unique skills, such as compassion and attention to detail, can help the industry to innovate, move forward, and build smarter. “The female voice in construction is definitely louder,” says Campbell. Campbell, who has worked in construction for 14 years, says companies are now looking to women for unique skills that brings something different to the industry. “You’ve got to have different perspectives to innovate and to do things differently. A mix of cultures and ages are important and together with gender diversity, it brings the chance to challenge each other, to be competitive, and to innovate and bring new ideas into the fold.” For Campbell, the unique skills females have, include empathy, planning capability, and attention to detail. “There’s a huge push in the industry to recognise these skills and differences women bring and to use them to our advantage. A woman’s way of thinking is so […]

Eight tips to get your sustainability strategy pumping in 2024

From February issue, NZ Manufacturer It’s February and you’ve eleven months to make your manufacturing business more sustainable in the year ahead. These eight tips will help you create (or review) your sustainability strategy – and take action. Becoming more sustainable adds value to your business Sustainable businesses are excellent businesses. They create value in the short and long terms. That’s because sustainability is about much more than the environment. It covers every aspect of your business. (See tip 2 below.) Becoming a more sustainable business will help you reduce costs and risk, strengthen relationships with your suppliers, enter markets and grow market share. You’ll attract talented employees and investment, keep onside with your regulator (if you have one) and build links with local communities. That’s a lot of good reasons to act! A strategy focuses your efforts A strategy helps you tackle the right things, in the right order, to make your business more sustainable. While it’s tempting to focus on activities that yield fast, visible results or to do ‘a bit of everything’, you need to prioritise. For example, if you manufacture a product, tackling your packaging may seem a great place to start. But if your packaging accounts for just 5% of your environmental footprint, there are better ways to use your limited resources. A strategy will help you identify them. Tips to create your strategy Make sustainability part of your business strategy – not an ‘add-on’ Weave sustainability into everything you do so that acting sustainably becomes ‘how you do business’. For example, work with your suppliers to source lower carbon materials and identify risks of modern slavery. Redesign your product to reduce the energy you use and the carbon you emit. Train your team to cut waste and look to your local community when you […]

Harnessing the Power of Biogas: A Sustainable Opportunity for Industrial Manufacturing

From February issue of NZ Manufacturer -By Insa Errey While renewable energy has been making strides in various sectors, the potential of biogas in revolutionising industrial manufacturing remains largely untapped in New Zealand. This article explores the opportunities and benefits of exploring the opportunities of biogas in industrial processes. Biogas production involves the anaerobic digestion of organic materials such as agricultural residues, food waste, and wastewater. This process utilises microorganisms to degrade the organic material into methane. A byproduct from anaerobic digestion is digestate which can be utilised as biofertilisers. Reduction of Greenhouse Gas Emissions: Biogas utilisation has multiple advantage in reducing a site’s greenhouse gas emission. First, anaerobic digestion prevents the release of methane—a potent greenhouse gas—into the atmosphere. By capturing and utilising methane as biogas, greenhouse gas emissions from waste decomposition can be reduced. Secondly, biogas can be cleaned, known as green gas or biomethane. It can be used directly in on-site as process heat, reducing the need to purchase the required gas for heating from external parties and offering a cleaner alternative with lower carbon emissions. Waste Valorisation: The industrial sector generates substantial amounts of organic waste from processing residues that can end up in landfills or council wastewater treatment facilities. Biogas production provides a valuable solution by converting these waste materials into valuable energy and fertiliser resources. This waste valorisation not only reduces the environmental impact but also promotes a circular economy approach within the manufacturing process. Producing certified biofertiliser can contribute to increasing food production. Cost-Effective Energy Source: Biogas can serve as a cost-effective energy source for industrial manufacturing. By harnessing locally available organic waste, sites can create a steady and reliable source of useable energy, reducing dependence on traditional fossil fuels. Energy Independence: Most manufacturing sites rely heavily on external energy sources, making them […]

Transforming Supply Chain Planning: How to create resilience, efficiency and agility

From February issue of NZ Manufacturer -Chris Foord, Partner, Argon, New Zealand Post Pandemic we are seeing an essential change in how businesses review their supply chain strategy with a focus on integration and forward-looking planning. Advanced Planning Systems (APS) are at the heart of digital transformation when looking to improve operations management. Companies in Australia and New Zealand have traditionally lagged in investment in this area. However, with the market maturing and good options available for small to large organisations, it is worth considering the opportunity. The benefits of implementation that we usually observe are: 20% reduction in working capital 3% reduction in COGS 6% reduction in Logistics costs 10-20% improvement in forecast accuracy Improved customer service What necessitated companies to modify their supply chain planning? The global pandemic has fundamentally altered the landscape of supply chain planning. Prior to the pandemic, supply chains were focused on creating efficiencies based on a just-in-time model, with inventories kept intentionally low. Businesses relied on backwards looking data to evaluate decisions, and adjusted plans on most recent events. However, the global pandemic caused businesses to reconsider this approach, with inventories now seen as a buffer to unexpected disruptions, leading companies to consider moving to a just-in-case model. The result has led to a recalibration of how businesses consider suppliers, capacity, and inventory, with the focus now centred on resilience, efficiency and agility through the supply chain. How are companies refining their strategies and approaches? The key change has been businesses embracing sales and operations planning (S&OP). S&OP is an integrated planning process that aligns demand, supply, and financial planning, and is managed as part of a company’s master planning. Rather than just a supply chain process, embracing S&OP results in planning coming to the forefront of the business as the business planning […]

The year of digital transformation

From February issue of NZ Manufacturer -Adam Sharmer, Senior Partner, Dsifer If 2023 was the year of Generative AI, 2024 looks set to be the year of digital transformation. A recent survey of manufacturers found that 70% of those surveyed planned to increase spending on digital transformation in 2024. This is perhaps no surprise as organisations continue to review their operations to improve production efficiency, optimise supply chain and leverage data and analytics to shift to predictive, rather than reactive planning and improvement disciplines in response to high production costs, supply chain instability, workforce challenges and data security concerns. As industries transition towards Industry 4.0, defining a comprehensive digital manufacturing strategy is crucial, yet 42% still collect most or all of their data using non-digital processes and 63% collect less than half their data using digital processes. Through our engagement with organisations in New Zealand and the UK, we have identified 10 factors that are critical to the success of digital transformation. Clear Business Objectives Before diving into the world of digital manufacturing, it is essential to establish clear business objectives. Whether the goal is to enhance operational efficiency, reduce costs, or accelerate time-to-market, having a well-defined purpose will guide the entire strategy. Understanding the unique challenges and opportunities of the organisation lays the foundation for a tailored and effective digital manufacturing approach. Data Management and Integration In the digital era, data is the lifeblood of manufacturing. Efficient data management and integration are critical components of a successful strategy. Organisations need to invest in robust systems that can collect, analyse, and leverage data from various sources such as sensors, machines, and enterprise software. This enables real-time decision-making, predictive maintenance, and improved overall visibility into the manufacturing process. Technology Infrastructure Building a strong technology infrastructure is essential for implementing digital manufacturing […]

Small is our Superpower

From February issue of NZ Manufacturer “AMA is committed to working collaboratively towards a system that works smoothly and supports a sustainable, prosperous future.” -Catherine Lye, CEO, Advanced Manufacturing Aotearoa (AMA) New Zealand has a strong manufacturing sector, but it could be better, stronger, more productive. Technology is a key enabler. When it comes to boosting productivity in the manufacturing sector, small is indeed New Zealand’s superpower. Despite New Zealand’s size, our manufacturing & tech sector has capitalised on this characteristic to drive efficiency, innovation, and competitiveness. “New Zealand’s small market allows us to develop and market-test in a small scale before scaling up to export to larger markets. Manufacturing onshore means we have more control over quality and our IP, and we support local suppliers, which all helps grow the economy.” Nick Coubray, CEO (New Zealand Advanced Manufacturing Report 2023). Our manufacturing and tech sectors have many great individual players, but we lack the coordination necessary to realise their full potential. New Zealand needs growth. New Zealand needs companies that are going global and internationalising, growing prosperity and potential for all NZ. But we could do better. Through modernising our manufacturing, we can continue to foot it with the best in the world. “Buckleys is embracing Industry 4.0 with its ongoing investment in CNC machines which are bigger, faster, more accurate, and can process more than one job. Continued development with senior operators on their use of digital tools is an ongoing programme, ensuring the investment is fully realised. Additionally, the business has purchased an enterprise resource planning system, enabling better data-driven manufacturing and processing improvements. This digital investment enables Buckley Systems to maintain its growth trajectory.” Arron Sands, CEO. There is opportunity for enhanced production through improving coordination and awareness across manufacturing, tech, agritech, aerospace, and energy. Silos […]

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