Smart Manufacturing Today

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 […]

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 […]

Yes, greenwash matters to manufacturers too!

From March issue NZ Manufacturer www.nzmanufacturer.co.nz ‘Greenwashing is a marketing issue. What it’s got to do with manufacturers?’ A lot, actually. Many consumers (wholesale and retail) want to understand the environmental impacts of the products they buy – and every product is manufactured somewhere. So the claims you make about your products to your customers, or that your customers make about your products to their customers, need to stand up to scrutiny. Is my claim true? Is it accurate? Is it specific to my product? Can I prove it? Or is it ‘greenwash’ – a vague, meaningless statement that suggests you’re doing more to protect the environment than you are? Greenwash is everywhere In 2021 the International Consumer Protection and Enforcement Network carried out a global sweep of more than 500 websites that promote products and services. More than 40% appeared to be using greenwashing as a marketing tactic. Photo credit, Christopher Wilton-Steer. Scrutiny from consumer organisations and climate activists is growing globally and prosecutions continue to rise. Major retailers including H&M have been forced to backpedal on sustainability claims made about the products they sell. The business costs of greenwash are high Your manufacturing business has probably spent years and a lot of money building your reputation and brand. Look after them! Promising an ‘eco’ benefit that you can’t back up can damage both. (Social media is relentless.) Regulators have greenwash in their sights. The financial penalties are large. Companies convicted of greenwashing face fines of up to $600,000 in Aotearoa New Zealand and more in Australia. Eight tips to avoid greenwashing as a manufacturer Tip 1: know your numbers If you want to claim that your product is ‘low-carbon’ or ‘uses less water’, make sure you can back these statements up with data. Start by setting a baseline […]

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 […]

Engineering and Manufacturing Cluster identifies key themes: Collaboration and innovation at the forefront

From NZ Manufacturer, March 2024 issue. Southland Engineering and Manufacturing Cluster Manager Brendan Gray. The Southland Engineering and Manufacturing Cluster, a pioneering collective dedicated to transforming Southland’s industrial landscape, has identified key themes within the industry, emphasising collaboration and innovation as primary drivers for growth. Led by Brendan Gray, the Engineering and Manufacturing Cluster is working to transform Southland into a united industrial hub for the engineering and manufacturing sector. Dean Addie, Chair of the Southland Engineering and Manufacturing Cluster, underscores the importance of collaboration within the industry, stating, “Our core objective is to ensure sustainable growth in engineering and manufacturing throughout the region. By fostering collaboration among industry players, we showcase the incredible capabilities of our region and empower our regions to bid for large engineering and manufacturing contracts with confidence.” The cluster is an initiative introduced from Just Transitions; a government supported initiative to develop an economic road map for Southland as it navigates the uncertainty of the future of New Zealand Aluminium Smelter. The Cluster has an important role to support local contracting firms to transition from reliance on NZAS business and participate fully in new economic opportunities, while also supporting existing major industries. Brendan Gray, Southland Engineering Cluster Manager, expressed his enthusiasm for supporting the engineering community, saying, “It has been enlightening working with industry, understanding the needs and desires of the engineering and manufacturing community to fully support their transition and growth into a new era of business opportunities.” The cluster’s recent findings highlight a true desire within the industry to collaborate and work together, coupled with an understanding and acceptance of the need to innovate, pivot, or change to foster growth. In an exemplar of collaboration, five key players within the Southland engineering community are joining forces to explore new energy opportunities. They recently attended a symposium delving into collaboration potential and opportunities […]

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