Smart Manufacturing Today

The scope 3 ripple effect

-Insa Errey In the ever-evolving landscape of regulations, New Zealand manufactures find themselves connected to the regulatory frameworks of key trading partners such as the European Union (EU). The EU has positioned itself as a global leader in climate action, with ambitious targets set under the European Green Deal and the European Climate Law. As part of its efforts to reduce greenhouse gas emissions, the EU has implemented regulations on Scope 3 emissions reporting through directives such as the Non-Financial Reporting Directive (NFRD) and the EU Taxonomy Regulation. Understanding the impacts of Scope 3 regulations in these markets is crucial for New Zealand manufacturing. Let’s delve into how regulations in the EU can shape the strategies and operations of New Zealand manufacturers. First, what is Scope 3? Scope 3 emissions refer to indirect greenhouse gas emissions that occur in the value chain of a company, including both upstream and downstream activities. These emissions often result from activities such as the production of purchased goods and services, transportation and distribution, and waste disposal. For any EU customer this may just be your manufacturing sites Scope 1 or 2 emissions. Meaning the emissions your site emits from use of direct combustion (scope 1) or indirect emissions on site from purchased electricity (scope 2). What does this mean for NZ manufacturers? Market Access and compliance pressure to adhere to these standards is required for exporting to the EU which governs Scope 3 emissions disclosure and reduction. Failure to meet these requirements can result in barriers to market entry. In a global market increasingly, prioritising emissions reduction is becoming an advantage, as exporters can face competition from countries with lower carbon footprints. Failure to manage or measure emissions can put NZ manufacturers at a competitive disadvantage and could impact market share. Even if you […]

Harm reduction to take centre stage at EMEX 2024

From May issue, NZ Manufacturer magazine The Employers and Manufacturers Association (EMA) says it will be using its presence at EMEX 2024 this month to promote the urgent need for manufacturers to work together to help improve the sector’s health and safety record. EMA Head of Advanced Manufacturing Jane Finlayson says that the manufacturing sector has one of the country’s highest rates of workplace injury and there has not been the improvement in workplace harm that has been seen in other sectors such as construction and primary industries. “Simply put, too many manufacturing workers are being harmed at work. In fact, you are twice as likely to be injured working in a manufacturing environment in New Zealand than you are in Australia, and the economic and social cost is too high,” says Jane. “Every year there are about 30,000 injuries in the manufacturing sector and ACC pays out $50 million for acute injuries resulting in more than 240,000 lost workdays. But it’s not just about the economic costs. Each injury can have an impact on an individual, a family, and a community, “It also has a huge business impact, affecting productivity and morale. No one wants to see an employee, or a colleague, injured or seriously hurt at work. “That is why we’ve launched Project Whakahaumaru with support from ACC. This project aims to bring the sector together to develop a five-year action plan to reduce harm and improve the health, safety, and wellness of everyone working in manufacturing. Jane says the team are looking forward to engaging with manufacturers at EMEX to hear their ideas and encourage them to get involved in the project and share their experiences. “We don’t pretend to have the answers. The reasons for the high rates of harm in manufacturing are complex and, to […]

Another great reason to understand your supply chain!

From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz Are you 100% sure you know what’s in your supply chain? Do you fully understand the work practices involved? Yes and yes? Then you’re in good shape to keep selling to the European Union when the new European Supply Chain Act takes effect. No and no? Then you’ve work to do! New EU legislation will require many suppliers to EU companies to better manage their social and environmental impacts. Here’s the acronym: Corporate Sustainability Due Diligence Directive (CSDDD or CS3D). Even if you don’t trade with the EU, expect to see more focus on supply chains, right around the world. Why? Because supply chains are notorious sources of social and environmental ‘hotspots’. Wages below subsistence. Forced labour. Treacherous working conditions. Toxic chemicals. Polluted waterways. Deforestation. The list goes on. The draft European Supply Chain Act Read on for general information about the changes. What’s happening? The European Parliament has voted for the draft bill. Parties are now negotiating a common position to pass the bill into law. What’s the aim of the new law? It’s one we can all sign up to: a fairer, safer, more sustainable global economy. Who does the law cover? It covers many larger companies based in the EU. Some companies outside the EU are covered if their EU turnover is large. Small and medium-sized businesses are not directly affected. However, the law will affect them if they supply to larger companies. What does the law require? Affected companies must manage social and environmental impacts across their value chains. (This is currently voluntary.) These value chains include the companies’ direct suppliers (maybe your business?) and indirect suppliers too (your business’ suppliers?) The law is stricter than most existing national legislation. What does the law mean in practical […]

EMEX is a big deal…

May issue, NZ Manufacturer includes our second Preview of EMEX 2024. Click on the link below to read. Because it is the premier trade fair in the country for the manufacturing sector. Where visitors can see the best of the best all in one place. An example of an exhibitor is Datum Machines Ltd of Wellington, a manufacturer, who has been designing and engineering over 18 months the Series One Gantry Mill CNC machine from the ground up. NZ Manufacturer May 2024 by Media Hawkes Bay Limited – Issuu This machine is for companies wanting to add CNC automation to their production workflow and increase productivity. At an extremely competitive price. A labour of love, devotion and lots of money, the machine, an example of great Kiwi ingenuity, is on display at EMEX 2024, on Stand 4115. As much as it is an event to discuss business – buying or selling, export opportunities etc – it also benefits visitors who want to discuss industry trends and share stories of success. New Zealand has a rich history of inventions and product development, something that became clear to me a little while back when I produced for this show’s organisers a History of Manufacturing in New Zealand document which went back as far as the early 1900’s. Today’s innovators, using different technologies and equipment, manufacturing for the needs of the times, have a rich history to fall back on, on the path to success. So, let’s keep manufacturing strong. We certainly do have our challenges in today’s environment. But they are only challenges. We adapt, we change, we keep moving forward. We keep making the next ‘big thing.’ -Doug Green, Publisher

Improving workplace literacy skills: A key to unlocking staff potential and lifting productivity

From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz -David O’Connor, Commercial Manager, The Learning Wave There is no shortage of evidence – both research-based and practical examples – that productivity continues to be one of the main challenges to the long-term growth and success of the Manufacturing sector here in New Zealand. Coupling this challenge with an aging workforce, and barriers to attracting new skilled labour means that many businesses have significant skills, capability, and capacity issues that are holding them back, or restricting their ability to adapt and respond to market opportunities. One of the constants that we hear from our clients is about how to address the underlying literacy challenges in both their frontline staff and supervisors. While many businesses might have ‘done’ literacy training (often in small numbers) in the past, they often have not seen the benefits of this training in terms of changes to the shop floor or seen any flow-on effect to productivity. Workplace literacy is more than just someone’s ability with basic reading and writing skills. Today’s workplace demands mean that workplace literacy needs to include comprehension of complex work instructions, critical thinking and problem-solving, strong verbal and written communication skills, numerical and analytical skills, and the growing need for everyone to have to digital mindset and skills to work in our ever-growing digitally rich workplaces. Misinterpretation of instructions, inability to comprehend safety guidelines, or errors in recording data can lead to costly delays and rework. Imagine a scenario where a worker misreads a critical measurement or mishandles a machine due to a misunderstanding of operating procedures. The repercussions extend beyond mere inconvenience; they affect the bottom line. According to the 2016 Survey of Adult Skills, around one in five people in the New Zealand Workforce have very low literacy skills and a further […]

Embracing the Future: How Digital Twin Technology Can Accelerate Manufacturing Operations

From May issue, NZ Manufacturer magazine www.nzmanufacturer.co.nz -Adam Sarman, Senior Partner, Dsifer In an industry in which flexibility, agility and innovation are no longer competitive advantages, but tickets to the game, the ability to make responsive, agile decisions, predict future requirements and innovate without impacting operations are critical. In this dynamic industry context, digital twin technology has emerged as an important but underutilised technology. Digital twins are software models that represent the attributes and operating behaviour of physical assets, product designs and/or processes. They support better decision making by simulating how these applications behave given certain inputs. A digital twin’s ability to enable progressive learning and capture tacit knowledge provides a key, differentiating benefit: it stores and structures information in a way engineers and operators can understand. Digital twins, are reshaping how products are designed, manufactured, and optimised across all process and design-drive industries. Three key applications of digital twin technologies are process optimisation through simulation, product design simulation, factory/operation design and predictive maintenance. Process Optimisation: Enhancing Efficiency and Accuracy Process simulation lies at the heart of manufacturing and supply-chain optimisation, and digital twins provide an unparalleled platform for achieving this. By creating virtual replicas of production processes, manufacturers can simulate and analyse operations in real-time, enabling them to identify bottlenecks, optimise workflows, and improve efficiency. For instance, in automotive manufacturing, digital twins are used to simulate assembly lines, allowing manufacturers to test different layouts and production scenarios before implementation. Moreover, by integrating IoT sensors and data analytics, manufacturers can collect real-time data from equipment and processes, feeding it into the digital twin for predictive maintenance and continuous improvement. Product Design: Accelerating Innovation and Iteration Digital twins play a crucial role in product design by enabling engineers to create virtual prototypes and simulate their performance under various conditions. This […]

The relentless pursuit of “Better, Faster, Smarter”

-Catherine Lye, CEO, Advanced Manufacturing Aotearoa Having arrived late to the viewing of the latest Netflix series, “Drive to Survive,” I couldn’t help but notice the striking parallels between Formula One and our manufacturing/engineering industry. Both embody precision engineering, composites, CNC Machining, additive manufacturing, artificial intelligence, and, crucially, teamwork. Manufacturing is a team sport. Across manufacturing, achieving industry “fit for purpose” embodies the essential quest to align skills with the sector’s dynamic purpose-driven landscape. This necessitates a concerted effort towards upskilling the workforce, ensuring that competencies seamlessly merge with the industry’s fast-changing needs and objectives. Whether embracing advanced technologies, sustainable practices, or fostering innovation, being “fit” demands a workforce adept at navigating the intricate demands of a purpose-driven business. From mastering cutting-edge machinery to embracing sustainable production methods, the journey towards industry fitness entails a commitment to continuous learning and adaptation. Ultimately, by cultivating a workforce equipped with the right skills and mindset, manufacturing can assert its relevance, efficacy, and sustainability in fulfilling its broader purpose within the global economy – economic development, driving productivity, employment, a vehicle for social development, entrepreneurship and wealth creation. Fostering innovation and technological advancement, acting as a catalyst for progress across various sectors, driving growth and enhancing societal well-being on a local, regional and global scale. We must reimagine manufacturing for the next generation. They are the future drivers of our factories. Younger people are seeking problems to solve. You hear stories about them wanting to be YouTube SuperStars, Influencers, but they are just as serious as well as anyone else about earning good money and doing what they can to change and make a difference in the world. Manufacturing presents an intriguing and interesting career choice for them – a change to innovate and solve problems in new ways. To ensure industry competitiveness, […]

There are no silver bullets to sustained productivity

From May issue NZ Manufacturer -Ian Walsh, Argon & Co It’s great to see the recent upsurge in discussions regarding the need for New Zealand to be more productive. This discussion is long overdue. The problems with New Zealand’s productivity have been masked by employees working harder for longer hours, and a surge in immigration providing excess labour, rather than working smarter. This has kicked the productivity problem down the road, and masked the reality that almost all other countries in the OECD are more productive per labour hour than we are. It is a shame that we’ve waited until we’ve run out of levers to pull, the platform to burn, and for our economy to be in arguably its worst shape ever for us to confront this brutal reality. As ever in these situations there are many peddling solutions looking for a problem. They offer silver bullets with IT and digital solutions, which look great in demonstrative environments but often don’t deliver fully when implemented. With that said, this does identify a further problem – that we are behind in digital adoption, investment in R&D and technology. However, to suggest that by addressing the digital adoption gap we will also address the productivity gap is somewhat erroneous. Digital solutions aim to automate or improve the efficiency of existing processes and ways of working, and these tools can enhance productivity when successfully implemented with careful planning, training, and change management. However, to be effective these tools need efficient, consistent physical practices and operational processes to work alongside and model. This is where these solutions aren’t replicating the success of the demo environments they’re sold on – the real operations of our businesses aren’t the tidy and optimally-structured brainchildren of software developers. They’re chaotic factories, reactive back offices, haphazard warehouses, and […]

NZ made gantry mill cnc machine doesn’t cost the earth

DATUM Machines Ltd, who are exhibiting at EMEX 2024, have, over 18 months, designed and engineered the Series One Gantry Mill CNC machine from the ground up. The result is a rigid and versatile machine. A steel and composite core construction means reduced resonance and vibration giving better machining accuracy, excellent finish quality and a longer tool life across a wide range of materials including plastics, composites, brass, aluminium and steel. The DATUM DGM-S1 Gantry Mill design is unique in its class in New Zealand. Its material range and precision machining ability outperforms any locally available CNC machine of its size and price range. As Datum Machines Ltd uses their machines to make their machines, they know what the machines are capable of! The versatility of this Gantry Mill CNC machine, combined with its compact size and touch screen operation, makes this an ideal solution for a wide range of users such as, sole traders, artists, prototypers, designers and small manufacturers. The full enclosure for chip containment and operator safety means this CNC machine is also a suitable educational tool for high schools, technical colleges, and training institutions. Priced under $50K this is a reliable and affordable Aotearoa New Zealand made Gantry Mill machine for anyone wanting to add CNC automation to their production workflow and increase productivity. The DATUM DGM-S1 Gantry Mill machine will be on display at EMEX 2024 Visit them at Stand 4115. www.Datum-cnc.com

Development of Industry Brand Critical to Manufacturing Sector Growth – Expert

New Zealand manufacturers need to address systemic image issues to attract more workers to the sector, according to a marketing expert. The call comes following a recent Government study into the manufacturing industry which found the sector has a capacity gap of 17,000 roles – with the size of this gap likely to grow 38% to 40,000 workers within five years if action is not taken. Researchers found widespread agreement across the manufacturing, engineering, and food & beverage sectors the most effective way of reducing the future impact of skills shortages is to promote sector awareness to attract future talent. Mark Devlin, director at strategic communications and marketing consulting firm Impact PR, one of the more industry specialised PR agencies New Zealand manufacturers can utilise to grow their brand awareness, says the study’s findings show there is a growing need for the sector to reposition itself. He says the reputation of the sector is at stake due to a historical view that it is comprised of low-wage and low-skilled roles. “The research shows that the manufacturing industry lacks the aspirational appeal needed to attract and retain workers from other sectors of the economy that compete for the same skill set. ”This may be at least in part due to the fact many Kiwi manufacturers are primarily export-focused and have not seen the need to develop a local consumer-facing brand. “Since the pandemic, we have seen a seismic shift in demand for workers in the sector and with the growing realisation that these skills are highly transferable, they are now competing heavily with other industries for talent. Devlin, whose agency has represented dozens of New Zealand manufacturers over the past two decades, says the repositioning of the industry needs to be done at both a macro and micro level with individual […]

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