Smart Manufacturing

The COVID-19 crisis has the potential to revive Australia’s manufacturing capabilities and reduce the nation’s reliance on global supply chains, according to leading industry players at the heart of Australia’s defence manufacturing sector. The University of South Australia this month formed a working group of defence primes, SMEs and government representatives to gain insights into the impact of COVID-19 on the local industry. The weekly meetings in Adelaide have so far included representatives from BAE Systems, Naval Group, Defence SA, South Australia Trade and Investment Minister David Ridgway and former Federal Defence Industries Minister Christopher Pyne, who is now an industry professor at UniSA. The COVID-19 pandemic comes at a time when Australia’s manufacturing sector is preparing to ramp up for the next major stages of its $90 billion continuous shipbuilding program in Adelaide. UniSA Defence Director Matt Opie is chairing the industry meetings and said maintaining cashflow had emerged as a key issue, particularly for the smaller defence manufacturing companies. “In South Australia we have hundreds of these defence SMEs and they are all now really starting to look at all discretionary spend and very much focusing on their immediate projects,” he said. “They are stretching the rubber band already but it will become their supply chains, their cashflow, their staffing that will all be stretched the longer it goes on.” Manufacturing has been deemed an essential service in Australia and has so far not been nearly as impacted as many other industries by the coronavirus. However, as almost all supply chains rely on imported components and materials, the pandemic is exposing Australia’s reliance on other nations, many of which have been far more seriously affected. Opie said the current situation was “a bit of a sanity check” for Australia’s sovereign industrial capability. He said major global defence primes […]

By Rob Stummer, Asia Pacific CEO, SYSPRO This is an incredibly difficult time for everyone and manufacturing companies have had to lay off staff or shutdown during the Covid-19 pandemic. Coronavirus has already caused shifts and a reduction in “wants” goods and an increase in “needs” goods as this crisis evolves, and consumers batten down the hatches into a conservative mode, and some businesses have been agile enough to switch production quickly to high demand products like ventilators, masks, hand sanitiser or home consumables. As we stem the spread of the virus, what is certain is that there will be an upturn and demand will recover, we just don’t know when. When the inevitable recovery does happen though, the manufacturing companies that have maintained a level of business continuity and are ready to jump back into full production are the ones that will survive this Covid-19 crisis. The real question is how quickly will that demand come back and how will manufacturers be able to respond to their biggest challenge to date? Increasing operational efficiencies In an increasingly interconnected world, maintaining the efficiency of supply chains is of the utmost importance to the Australasian economy if we are to jump back into action once the constraints of the coronavirus crisis have reduced. The good news is technology is allowing manufacturers to minimise disruptions by using real-time reporting to manage their inventory to ensure there are no issues with under or oversupply of goods. A frictionless, real-time, data-driven and interconnected supply chain can only benefit the economy in the short and the long-term. Manufacturing businesses should be doing everything they can to survive this by preserving cash and by optimising their operational efficiencies using real-time process feedback. Their Manufacturing Execution Systems (MES) will ensure that quality and efficiency are built into […]