Business

AI can boost Australian manufacturing productivity, if it’s used correctly

By Stephen Roebuck, Associate Director of Consultancy, Peninsula Australia Australian manufacturing businesses have their sights set on improving productivity to meet ever-evolving consumer demand through the utilisation of AI. Indeed, this was demonstrated by a recent CommBank report, Manufacturing 2024 Insights Report, which found that 71% of manufacturers are focusing on AI to boost efficiencies. However, with 41% of respondents to the same report identifying labour skills levels as the number one challenge for their business, raising productivity is no easy feat. This is where new and emerging technologies like AI have the potential to transform the industry – provided they are used correctly. Streamline safer processes As the Industrial Revolution proved, any technology or machinery that can automate physically demanding, tedious and manual processes is transformative for productivity. AI is enabling massive leaps in safety, efficiency, and output for manufacturing businesses around the world, reducing the reliance on human observation and labour. Therefore, AI can help reduce the risk of accidents, optimise workflows, and enhance overall operations. In fact, AI’s insights into workplace safety and identification of potential hazards are especially useful for high-risk industries like manufacturing. However, the uptake of new and emerging AI technologies that have become popular in many industries, such as the education and marketing sectors, is moving slower in the Australian manufacturing industry. This is primarily attributable to the costs involved with implementation, which are prohibitive for some businesses. However, this is likely to change as the Federal Government’s $15 billion National Reconstruction Fund funnels more financing into areas including value add-in resources and renewables. But without proper training for workers to use new equipment that is powered by AI, business owners and employers are exposed to a whole new range of risks. Train and maintain Effective training is critical in delivering on the […]

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CSIRO and Murdoch University launch Bioplastics Innovation Hub to end plastic waste

CSIRO, Australia’s national science agency, and Murdoch University have launched The Bioplastics Innovation Hub, an $8 million collaboration that will work with industry partners to develop a new generation of 100 per cent compostable plastic. The Bioplastics Innovation Hub aims to revolutionise plastic packaging by developing biologically derived plastic that can break down in compost, land, or water. Dr Andy Whiteley, CSIRO Research Program Director, said the Hub aims to bring together experts in microbiology, molecular genetics, synthetic biology, biochemical engineering, advanced manufacturing and circular economy by translating advancements in bioplastics research to real-world applications. “Our primary focus is the development of 100 per cent compostable, bio-derived packaging for use as sprays, films, bottles, caps and wrappers which are engineered to fully break down in compost, land and in aquatic environments,” said Dr Whiteley. With global concerns over plastic pollution and fossil fuel depletion driving an increased demand for compostable bioplastics, the Hub will equip the plastics industry with the tools and expertise required to manufacture materials and continue to drive a plastic waste green economy. The first key focus area will be a co-investment with WA-based biotechnology company Ecopha Biotech Pty Ltd, to develop a new process for water bottle production using compostable bioplastics derived from waste products from the food industry. Murdoch University Deputy Vice Chancellor Research & Innovation Professor Peter Eastwood said managing the growing plastic waste crisis required innovative technological solutions, including bioplastics. “Together with CSIRO, Murdoch University will fast-track the production of novel compostable bioplastic and introduce a green plastic to the market which will significantly minimise the requirement for non-sustainable plastic production,” Professor Eastwood said. “We also aim to assist industry in establishing an advanced biomanufacturing sector, to commercialise compostable bioplastics that meet the manufacturing […]

Transforming Manufacturing: The Power of AI in Industry 5.0

By Terry Smagh, Senior Vice President and General Manager, Asia-Pacific and Japan at Infor The manufacturing and distribution industries are no strangers to innovation. Over the past decade, the Fourth Industrial Revolution has played out, bringing to bear powerful new technologies including the IoT, advanced analytics, process automation, and AI. Today, factories are “smart”, hyper-connected, and data-centric. They’re more efficient than ever, and operators are empowered to make the best possible decisions based on data-driven insights. This story is not yet complete, however. In 2024, manufacturing and distribution companies stand on the cusp of yet another operational paradigm shift. This Fifth Industrial Revolution, or Industry 5.0, will encompass a dramatic pivot towards more intelligent technology, to empower human employees to work at their most productive. Over the next few years, we will see manufacturing and distribution leaders looking to embrace AI, robotics, and IoT. They will focus on the nexus of man and machine to drive sustainability, efficiency, and more agile approaches to production. This trend has been accelerated by the advent of generative AI (GenAI). Manufacturers are already looking to integrate innovations in their factories to boost productivity and revenues. According to recent research, 35% of organisations in France use AI technologies. 72% reporting a positive impact on employee performance. How AI-Human Collaboration Solves Crucial Challenges for Manufacturing Businesses By thinking of AI as a means of empowering employees and turbocharging their productivity, rather than as a low-cost alternative for low-value tasks, manufacturers will be able to solve some of their most intractable challenges. Supply Chain Supply chain resilience is a case in point. This is an issue that has never been far from the headlines in recent years. Remember the pandemic, drought affecting the Panama Canal, or the recent attacks on shipping in the Red Sea. With the […]

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AAAA urges government to unlock manufacturing funds to secure automotive industry’s future

The Australian Automotive Aftermarket Association (AAAA) is urging the government to act on manufacturing funding commitments, which are essential to the growth and competitiveness of the automotive manufacturing industry. The AAAA, the peak body for the automotive aftermarket industry, was encouraged by last year’s announcement of the $15 billion National Reconstruction Fund and the more recent $22.7 billion Future Made in Australia Fund, which sparked optimism within the industry. However, the lack of clear guidance and access to these funds has left many automotive manufacturers frustrated and uncertain. “Our manufacturing industry needs clear action now to ensure we can continue to innovate and compete on the global stage,” said Stuart Charity, CEO of the AAAA. “It’s been over a year since the funds were announced and the industry is still waiting for details on how to access this critical support. The lack of progress is not only frustrating but is also putting our industry at a disadvantage.” The government’s announcements without follow-through could exacerbate existing challenges in the sector, including global supply chain disruptions, technological advancements in ADAS and EVs, and increasingly harsh regulations. “Our industry is navigating complex challenges, and the promised funding could provide crucial support in adapting to these changes. However, without clear guidance and timely allocation, these opportunities remain out of reach,” said Stuart. The automotive manufacturing industry is particularly concerned about the complexity of eligibility requirements, which often exclude small and medium-sized businesses with innovative ideas. “The government aims for a guaranteed 10-times return on investment, but this expectation is unrealistic for many in our sector. Instead of fostering innovation, these funds are being made inaccessible to the very businesses that could drive growth.” “The Honourable Tim Ayres, who is the new Assistant Minister for a Future Made in Australia has a chance to be […]

Black Sky Industries launch in Australia a boost to sovereign defence industry capability

Defence industry and technology company Black Sky Industries has formally launched in Australia, announcing the establishment of its multi-million dollar headquarters in Logan, in South East Queensland as well as launch, test and manufacturing facilities throughout Western Queensland. Black Sky aims to greatly accelerate the production capability of sovereign scaled rocket motor and defence systems. Black Sky Industries, formerly known as Black Sky Aerospace, is Australia’s only sovereign developer and supplier of solid rocket propellant and solid rocket motors to the defence sector. Black Sky Industries was founded by aerospace, defence and manufacturing industry veterans Blake Nikolic and Karl Hemphill, and Dr Vu Tran, who co-founded $3 billion-plus technology startup Go1. L TO R: Black Sky Industries founders Dr Vu Tran, Blake Nikolic and Karl Hemphill. Black Sky has ambitions of creating hundreds of advanced manufacturing and defence industry jobs over the next decade. Recent key hires at the company include former L3Harris Technologies director David Johnson as general manager, enterprise development and defence innovation veteran Stephen Delo. Black Sky is reimagining how rockets are designed, developed and manufactured at scale. As a local producer of ammonium perchlorate (AP) – crucial to conventional solid rocket motors used in aerospace and defence industries – Black Sky produces solid rocket propellant and motors, and offers its homegrown, proprietary Wagtail Rocket Assisted Take-Off (RATO) technology for Unmanned Aerial Vehicles (UAV) and drones. Cortex1, Black Sky’s proprietary software platform, underpins all aspects of its operations, from research and development and manufacturing to powering products and platforms, including launch control, tracking and mapping through data-driven propellant formulation and characterisation technology using artificial intelligence. Black Sky’s rapid-fire pace to innovate is in line with a key tenet of the federal government’s 2024 National Defence Strategy, to better integrate existing and emerging technologies, […]

Has Industry 4.0 left your operations vulnerable?

Trevor Dearing, Director of Critical Infrastructure Solutions, Illumio For three years running, manufacturing has been a top-attacked industry, according to the IBM X-Force Threat Intelligence Index 2024. Attackers see manufacturers as an increasingly attractive target. Smart factories open new attack vectors, and as new industrial control systems (ICS) become more connected, the opportunity for malware to spread grows. This is placing increasing pressure on manufacturers to make their operations resilient enough to withstand attacks, with the 2024 World Economic Forum Global Cybersecurity Outlook revealing that operational disruption is the greatest cybersecurity concern for almost half (45%) of leaders. Here I will discuss how Industry 4.0 is changing manufacturing cybersecurity and why deploying a Zero Trust approach can help protect against vulnerabilities from smart factories and ICS. The benefits and challenges of Industry 4.0 Industry 4.0 has revolutionised manufacturing through automation and connectivity. Now, enterprise resource planning (ERP) systems handle everything from taking orders to overseeing production. New ICS technology provides more data and control by using smarter applications built on standard platforms which in turn extends the operational life of the systems. Because of Industry 4.0, manufacturers are improving how well their supply chains work. But this also means their systems are more connected and vulnerable to cyber threats. These threats can target ICSs and cause serious problems. New ICS environments more at risk than ever In the past, ICS attacks were mostly simple malware and known weaknesses. But with smarter systems now available, attackers have more opportunities. These new systems connect and communicate in complex ways that leave security gaps and blind spots. They also connect to the internet which opens even more ways for attackers to breach and exploit systems. These changes have led to more sophisticated attacks such as zero-day exploits and targeted hacks. There’s also more […]

Combatting rising costs by optimising operational efficiency

James Robinson, SYSPRO Head of Services Asia Pacific. Over the past five years, the manufacturing sector has demonstrated remarkable resilience, enduring many different challenges. Today, manufacturers face a renewed and formidable challenge with unexpected higher inflation raising the risk of yet another rate hike, threatening to destabilise the core economics of manufacturing businesses across Australia and the Asia Pacific region. The challenging economy has dominated the news for over two years, placing the manufacturing industry in the spotlight as it grapples with the challenges it presents. SYSPRO’s recent Global CFO Manufacturing Survey showed that over 80 per cent of respondents across the Asia Pacific region cited high inflation and interest rates as a cause of drag in the manufacturing industry. Meanwhile, 67 per cent of companies surveyed have been buffeted by economic uncertainty and supply chain disruptions. Yet, as history has shown, within every challenge the manufacturing sector has faced lies an opportunity for innovation and efficiency improvements. Strategies for optimising operational efficiency To counteract the effects of rising costs, manufacturers need to optimise their operational efficiency. Integrating their ERP (Enterprise Resource Planning) and MOM (Manufacturing Operations Management) systems can be a game-changer in achieving this goal. Here are several strategies for manufacturers to consider: Invest in technology and automation Embracing advanced technologies and automation is essential for the manufacturing sector. Innovations like ERP and MOM systems can significantly enhance operational efficiency by reducing reliance on manual labour, minimising errors and centralising information. Together with advanced technologies like the Internet of Things (IoT), artificial intelligence (AI), and machine learning, provide real-time data and insights, enabling informed decision-making and improved productivity. Optimise supply chain management Efficient supply chain management is crucial for minimising costs and ensuring a steady flow of materials. ERP systems help manufacturers enhance supply chain efficiency by diversifying […]

South Australian satellite Kanyini successfully launches into space

In an Australian first, South Australian owned and manufactured satellite Kanyini was successfully launched onboard a SpaceX rocket from the United States. Kanyini is the first State Government-funded satellite in the nation and was built by a local team of South Australian-based companies – SmartSat CRC, Inovor and Myriota. The $6.5 million mission is helping to create hi tech jobs in the state’s space sector and develop vital space capabilities in the State. Now that Kanyini is in orbit, the next milestone for the project is to establish stable communications through an operations centre located at Inovor Technologies in Lot Fourteen, Adelaide. Once fully commissioned, Kanyini will deliver critical space data for use by government and research institutions, particularly in the areas of sustainability and climate impacts. The research initiatives to be undertaken by Kanyini include early bushfire detection – with technology that can detect fires from space 500 times faster than traditional processing. The satellite will also support a program – led by South Australian Department for Environment and Water and Greening Adelaide – to sense urban heat islands in the state. Data collected by Kanyini will also be used to develop robust and trustworthy predictive AI capabilities that can accurately predict natural disaster events such as landslides and flooding, being led by Queensland University of Technology and European Space Agency Phi-Lab.

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REMONDIS provides employment leg-up while addressing skilled worker shortage in WA

Thinking outside the box has resulted in REMONDIS Australia boosting skilled worker numbers via a training program that provides opportunities for long term unemployed people. REMONDIS’ Industrial Services Pathway was launched at the company’s specialised liquid processing plant at Henderson south of Perth last month. The conclusion of the three-week program has seen ten recruits, nine men and a woman, receive intensive hands-on training and obtain industrial services tickets and licences across areas including health and safety, high pressure water jetting, forklift operation, gas testing and working at heights and in confined spaces. The workers are also obtaining Heavy Rigid (HR) truck licenses. The program guarantees longer-term employment, with participants staying on in full-time capacities for at least 12 months. That involves initially being buddied with experienced operators so participants meet competency and compliance requirements to obtain full operators’ licences. The program was conceptualised and delivered by Gnalla Enviro, an Aboriginal owned and managed company specialising in commercial and industrial waste. Not-for-profit employment services provider Workskil Australia was pivotal in supplying the trainees. The program was endorsed by REMONDIS Australia WA Industrial Services Manager Steve Tunbridge. “The skills shortage is so severe that trying to find workers through advertising and word-of-mouth is often futile,” Steve said. “So we thought let’s tailor-make a training program ourselves and develop skills that match our needs. “The intensive three-week training is just the start. The program leaves the door open for full-time employment and mentoring, enabling each participant to take their skills and qualifications further. “In a very short timeframe we’ve produced a fresh cohort of workers champing at the bit to contribute and grow. It’s a win for each worker and a win for the skills-starved industrial sector.” Gnalla Enviro CEO Jason Collard said the program was run through the organisations training arm […]

Matthew Addley, Industry Strategist - Manufacturing, Infor AUS MN

Q&A:Matthew Addley, Industry Strategist, Manufacturing at Infor

How has the prospect of creating artificial realities in motion unveiled a spectrum of opportunities for manufacturers? The application of AI in manufacturing has the potential to transform the way products are designed and launched to market. OpenAI’s latest machine learning tool Sora can create realistic and imaginative scenes from text instructions – a manufacturer could potentially take a drawing off a page and show it in motion in real-life situations and operate it to perfection long before any physical product is built. Artificial Intelligence and Machine Learning can also analyse data sets – from performance to production schedules – and use this information to identify trends and predict outcomes. This could be invaluable for manufacturers to recognise patterns and forecast disruptions, leading to improved overall product quality. What is the profound impact of being able to animate conceptual designs, long before a physical product has materialised, on market testing and demand generation processes? Being able to animate conceptual designs allows manufacturers to test the waters and predict customer demand well before a product goes to market. This can result in significant cost savings, improved product efficiency and enhanced product quality. Manufacturers could also use additional AI/ML techniques to optimise production processes through its predictive maintenance and real-time monitoring capabilities. What is the inherent and increasing risk of technologies like Sora inadvertently or intentionally misleading customers? Even as Sora offers a faster and less costly way than the current human-led approach using computer generated imagery, it can encourage unethical practices. If the creation process allows a product to perform beyond expected capabilities, presumably but not always with a disclaimer, then the customer could be easily and deliberately misled. The reality is that there will always be challenges when it comes to rapidly evolving technologies but legislative bodies will need to […]

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