Smart Manufacturing Today

Digital Capability – A Critical Lever for Success

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz David O’Connor, Commercial Manager, The Learning Wave One of the greatest challenges for any organisation is the cost and effort of onboarding a new employee . This is further amplified in a tight job market where you may need to recruit individuals who do not have the core skills you would normally deem essential to be productive and work safely in your environment. The need to have a pipeline of skilled and capable workers with a broad range of transferable skills, strong work ethic and the right attitude is critical to enable long term business success. The training and educational sector have a role to play in enabling access to the right training pathways to ensure the continual development and upskilling of the team to prepare them for that next career step or business change. In Manufacturing, the productivity challenge is clearly rooted in a skills deficit, with many individuals lacking the essential skills and capability needed to fully leverage modern manufacturing practices. This skills gap has a significant impact on team work, employee engagement, safety and operational efficiency, leading to poor staff retention, low efficiency, higher error rates and increased waste As Manufacturing plants become increasingly technology dependent, this skill gap is unfortunately amplified and an urgent fix becomes even more essential. Foundational digital literacy is often inaccurately assumed as a skill held by most kiwis. According to the 2014 Survey of Adult Skills survey (PIAAC) the reality of this is that 55% of workers do not have the right level of digital competency to be successful in their roles. Meaning that over half of our workforce has low/poor Problem solving skills in technology rich work environments. If Digital literacy is deemed critical to success, then we have to question why those who […]

Coming full circle

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz By EMA Head of Manufacturing Jane Finlayson Global demand for sustainable goods is increasing, and among New Zealand manufacturers there’s an urgent need to innovate to remain competitive. From SMEs up to huge multinationals, ‘business as usual’ won’t be enough to meet the sustainability challenges the world faces. Legislation both in New Zealand and overseas will force the hand of many manufacturers. In New Zealand, regulations such as the Emissions Reduction Plan will place an increasingly high cost on manufacturing emissions. Overseas, the likes of the EU’s Carbon Border Adjustment Mechanism (CBAM) will have an impact on our exported products. The CBAM is a tool that puts a price on the carbon emitted during the production of carbon-intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. But sustainability is also good business. Like any strategic initiative done right, it can reduce costs, increase revenue and mitigate risks. Sustainability is about futureproofing. In late July, Minister for Small Business and Manufacturing Andrew Bayly launched a report with compelling new research on the circular economy. It is intended to support the growth and resilience of New Zealand’s advanced manufacturing sector by identifying and mapping the sector’s emissions and waste patterns and finding ways for businesses to adopt net-zero circular manufacturing practices. The aim is to move away from a linear economy to one that ‘designs out’ waste and pollution, keeps resources in use for as long as possible, then recovers and regenerates products. The EMA and other industry experts fed into the report, ‘Mapping Emissions and Waste Data in the Manufacturing Sector’, which found that circular economy practices do exist in New Zealand, within and across all the manufacturing subsectors, but they differ greatly. The key similarity was in challenges around waste. Of the 17 […]

It’s all about the people!

From: August issue NZ Manufacturer www.nzmanufacturer.co.nz Ian Walsh, Partner, Argon & Co Last month, I wrote an article on productivity (Productivity – The Only Game in Town) and I received a few questions and comments relating to the skills gaps we have in New Zealand. I’d really encourage you to read that article if you haven’t yet, and I can hopefully address those questions and comments here. https://nzmanufacturer.co.nz/2024/07/productivity-is-the-only-game-in-town/ As I noted in my last article, a skilled workforce is vital for productivity growth. If we want to have a great place to live, bring up families and enjoy the best economy that both New Zealand can offer, then we must have great people with the right skills leading our businesses, creating value and growth. Of course I’m not the only person who knows this; I’m regularly asked by hiring managers whether I know of a good candidate to join their company. Sometimes I can help, but more often than not, I simply don’t know enough people to fill all the vacancies in these companies. Recent macroeconomic analysis is showing clearly that differences in education and skills explain much of the international differences in long-term growth rates. Improvements in skills at all levels of ability seem to matter. Increases in both the proportion of top achievers and the proportion with at least a minimal level of literacy and numeracy are correlated with higher economic growth rates. However, the current approach in industry seems to be to promote the best operator to foreperson, team leader etc. and assume they will know what to do and how to do it. The other approach is to hire someone, under the assumption that the market is teeming with highly capable and skilled individuals. Little-to-no training and development is offered by most employers, and we have […]

Oasis Engineering – energy and fuel transfer specialist to the world

From August issue NZ Manufacturer www.nzmanufacturer.co.nz Export award winning, Tauranga based Oasis Engineering continues to expand its international market as a specialist manufacturer delivering world leading solutions to those pushing the boundaries of energy and fluid transfer for the benefit of humanity and the environment. The company originally began as the maintenance division of a soft drink brand but was separated during a restructuring during the 1980’s. The new company quickly established a strong reputation as a machine shop that reliably produced high tolerance precision machined parts in difficult to work materials such as stainless steel and titanium. This led to work manufacturing valves and couplings that were required for the new and emerging Compressed Natural Gas (CNG) fuel market for a major CNG supply company and this quickly expanded to every major CNG supplier and to every significant CNG market in more than 40 countries. Today Oasis Engineering is part of the ELAFLEX Group of Companies of Hamburg and is manufacturing precision CNG, LPG and Hydrogen reticulation products for the world market with approximately 80% of production going to the USA, 10% to other world markets and 10% to the local New Zealand market. The company is well placed to meet the demands of emerging markets including Hydrogen and Methane for heavy transport vehicles and renewable Natural Gas with sales doubling within the last two years. Oasis also produces specially designed high quality fluid couplings for the milk industry trailers. This state-of-the-art manufacturer is fully accredited to ISO 9001:2015 with product testing facilities including a Hydrostatic test rig rated to 4000 BAR and an Environmental Test Chamber rated between -800C and +1850C. A new addition will be a Hydrogen product test laboratory which is scheduled to be commissioned by the end of the year. Meeting the demands for the […]

‘We haven’t the money, so we’ve got to think”

EDITORIAL: From August issue NZ Manufacturer www.nzmanufacturer.co.nz These words were spoken by Lord Sir Ernest Rutherford, Nobel Laureate. Since he spoke them, some inspiring products have been made. These include The Martin JetPack, The Yike Bike, The Springfree Trampoline, Woollen Shoes, The Pavlova, Richars Pearse’s Flying Machine, Hamilton Jet, The Buzzy Bee…and the list goes on. What is significant about these products is that they were made at a time when there wasn’t the money available. Through sheer determination and effort, they found markets and advanced New Zealand’s name on the world stage as an innovative and go-ahead nation. There are a lot more products that have made the country proud and celebrated the entrepreneurs determined to get ahead. However, times have been changing and their is a lack of attention focussing on the productive sector. Financial corrections have been made to get the books in order and, now, support is urgently needed for our manufacturers. Nowhere in the Budget did we hear of the importance of the manufacturing sector to the economy, that all efforts were appreciated and when times get better, assistance would be offered to keep the backbone of the country strong. It seems that Government has gone too far with its slash and burn. The country of 5,000,000 can’t all dance on the top of the designated pin. Anyway, back to the inventions: The Britten Motorcycle, Wave Power, Conducting Polymers, Carbon Nanotubes, The Electric Fence, the Hamburger Holder…

New joint research projects under Australia-New Zealand Collaborative Space Program

SmartSat Cooperative Research Centre (SmartSat CRC) announced today the first four new jointly funded space research projects and opened further funding opportunities in partnership with New Zealand’s Ministry of Business, Innovation and Employment (MBIE). The four initial research projects, commencing in August 2024, include research into monitoring methane emissions, enhancing real-time monitoring of greenhouse gases, managing free space optical communication nodes across Australia and New Zealand, improving the tracking of space objects, and developing a joint AUS-NZ concept for maritime domain awareness. Enrico Palermo, Head of the Australian Space Agency, New Zealand Minister for Space and Science, Innovation and Technology Judith Collins, Hon Ed Husic MP Minister for Industry and Science and SmartSat CRC CEO Professor Andy Koronios. Professor Andy Koronios, CEO of SmartSat CRC, emphasised the importance of this collaboration and stated, “In a significant advancement for Trans-Tasman space collaboration, this partnership between Australia and New Zealand in the space sector demonstrates our commitment to leveraging our combined strengths and resources. “These projects are a testament to our shared vision of driving innovation and developing capabilities that will not only benefit our respective countries but also contribute to global advancements in space technology.” The partnership between SmartSat and MBIE aims to establish enduring partnerships between Australian and New Zealand researchers to create platforms for larger-scale future research collaborations, help develop talent, joint expertise and support R&D in alignment with industry and end user needs. Additionally, the research addresses major environmental, economic and social challenges through scientific collaboration while leveraging the unique geographical advantages of Australia and New Zealand, such as the southern hemisphere location, clear skies, and varied topography. Dr Carl Seubert, Chief Research Officer of SmartSat CRC, added: “We’re excited to be driving international research collaboration, and bringing Australian and New Zealand research organisations together to tackle significant issues […]

Ten tips to make your business case for sustainability stack up

This information is based on a guide we wrote with the Sustainable Business Council and Kaitiaki Collective. It’s a situation we know many manufacturers face. You want to make your business more sustainable. (Bravo!) You can see the many benefits of manufacturing products that reuse resources, avoid modern slavery and create fewer environmental impacts. But – here’s the kicker – you’re struggling to get the business case for making these changes ‘over the line’ with your accountant or finance team. These ten tips will help you. Tip 1. See becoming more sustainable as an investment Sustainable businesses are excellent businesses. They create value in the short and long terms – economically, environmentally and socially. Treat your sustainability programme as an investment and manage it as one. Tip 2. Identify your stakeholders Consider the many people who have a ‘stake’ in your business succeeding sustainably. You will naturally think of your investors, customers, suppliers, team, local community and regulators. Think longer term and wider too. Include the environment and people who will live many years in the future. Tip 3. Confirm where to focus with a materiality assessment Your business case needs to reflect the views of all these stakeholders and your business too. Start with a ‘materiality assessment’. It’s a practical way, using interviews and surveys, to home in on the sustainability activities that your stakeholders and business care about and to prioritise the ones that matter most. A materiality assessment takes a broad view of sustainability and covers environmental, social and economic topics. Include your top priority topics in your business case. Tip 4. Understand who you need to convince Who do you need to influence to get your business case over the line? What are they interested in? What are they concerned about? Who else has their ear? […]

Embracing digital technologies without losing craftsmanship

NZ Manufacturer July 2024 by Media Hawkes Bay Limited – Issuu Adam Sharman, Senior Partner, Dsifer In an era where digital transformation is reshaping industries across the board, bespoke engineering and machine shops face a unique set of challenges and opportunities. These specialised manufacturers, known for their ability to create custom, one-off products, are now grappling with how to embrace digital technologies without losing the craftsmanship that sets them apart. As they step into this brave new world, several key considerations emerge, along with significant benefits. At LMAC and Dsifer, we work with a lot of custom engineering organistions, and recognise the unique challenges these shops face. At the heart of the digital transformation is the need to maintain and enhance customisation capabilities, whilst optimising production and front-end processes to remain competitive on time to deliver and cost. Bespoke engineering thrives on flexibility, and any digital system must be flexible enough to accommodate diverse client demands. Advanced product configuration tools and parametric design software are becoming essential, allowing engineers to quickly adapt designs while maintaining the personal touch that customers expect. Data integration stands as another cornerstone of this digital revolution. By connecting design, production, and quality control systems, shops can create a seamless flow of information from concept to finished product. Product Lifecycle Management (PLM) software is increasingly becoming the central nervous system of these operations, ensuring that every stakeholder has access to the latest information. The adoption of advanced manufacturing technologies is reshaping the landscape, offering substantial benefits. With Computer-Aided Design (CAD) and Computer-Aided Manufacturing (CAM) systems well-established to significantly reduce design time and errors, additive manufacturing, opens new doors for prototyping and small-batch production, allowing for rapid iteration and reduced waste. These technologies enable machine shops to take on more complex projects and deliver them faster, increasing […]

Managing Your Online Reputation: Lessons from NZ’s Largest Manufacturers

NZ Manufacturer July 2024 by Media Hawkes Bay Limited – Issuu In business, first impressions matter. New research by NZ Manufacturer business advisor and Impact PR director Mark Devlin has found many of the country’s manufacturers are failing to manage their online reputation – an oversight that could have repercussions for their growth. For manufacturers, business relationships can be multi-faceted and, given the technical nature of the industry, at times they can also be highly complex. Whoever your target consumer is when you enter a business relationship at some level, even a rudimentary transactional one, you need them to have confidence in your brand from the outset – a promise you can deliver in a way that aligns with their understanding of what constitutes value. If you fail to reassure a potential customer that you can adhere to this expectation, your chances of entering a relationship are greatly diminished. I recently toured a local manufacturing facility where I was shown a piece of cutting-edge technology destined for the export market that was worth around $1 million. This is not an insignificant amount of money to spend on a single product and it occurred to me that if I was buying something of that value from an overseas company I would want to have the highest level of trust in that firm. This begs the question – how does a manufacturer create digital ‘trust signals’ so that when a potential customer, employee or other stakeholder begins to research their company, it provides the requisite reassurance necessary for them to move to the next stage of interaction and purchase? While all manufacturers have customers, few would have walked in their digital shoes to understand what they see during any initial desktop research process. At the same time, an even smaller number of […]

Leadership Development – showing the real return on investment

NZ Manufacturer July 2024 by Media Hawkes Bay Limited – Issuu David O’Connor, Commercial Manager, The Learning Wave While it is a comparatively easy exercise for businesses to show the Return on Investment on additional plant or machinery, being able to crunch the numbers of the real impact of leadership development training has traditionally been seen as more subjective, and made even harder when faced with the current headwinds of tight economic conditions. Businesses that continued to prioritise investment in their people during the earlier 2020s are now repeating the rewards of increased leadership bench strength, higher levels of staff engagement, and little or no employee churn. And many of our clients can now confidently calculate the return on their training investment. Much was made of the ‘Great Resignation’ during 2020 and the impact this would have on businesses losing their best talent, we all know businesses that stopped leadership development training while others doubled down on their investment to upskill their leaders. It is interesting that the commentary around the great resignation disappeared from HR and business reporting without much noise at all, and has been replaced with plenty of articles on the VUCA era – a trendy managerial acronym short for volatility, uncertainty, complexity, and ambiguity. In this VUCA era, it is reported that businesses need leaders – at all levels – with strong resilience, who can actively engage a wide and diverse group of staff, manage multiple projects and demands, and have a curious mindset to be able to lead their teams through constant change. So it is the businesses that continue to invest in their people leaders who will be reaping the rewards in the VUCA era, and being able to not only retain their top talent but also have a bench of talented leaders ready […]

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