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FOOD TRADESHOW BRINGS BUYERS AND MANUFACTURERS TOGETHER

This year’s Think Food event enabled manufacturers to showcase their products to local, interstate and international buyers. Page 6

OIL AND GAS OPPORTUNITIES THE FOCUS OF HOUSTON TRIP

A supplier study trip to Houston has given South Australian businesses exposure to mature petroleum supply chains. Page 9

PHOTONICS DRIVING ADVANCED MANUFACTURING IN SOUTH AUSTRALIA

The University of Adelaide’s Professor Tanya Monro discusses the potential for photonics in advanced manufacturing. 2

SOUTH AUSTRALIA’S MAGAZINE FOR DRIVING HIGH-VALUE MANUFACTURING

www.dmitre.sa.gov.au/manufacturing @DMITREsa

Issue 04MAY 2014

IN THIS ISSUE

MANUFACTURING WORKS SOUTH AUSTRALIA’S MAGAZINE FOR DRIVING HIGH-VALUE MANUFACTURINGP 2

CONTENTS

A MESSAGE FROM THE MINISTER P 3

MONDELEZ WORKSHOPS PROVE AN INNOVATIVE SUCCESS P 4

OPINION: FOOD, MORE THAN THOUGHT P 5

FOOD TRADESHOW BRINGS BUYERS AND MANUFACTURERS TOGETHER P 6

BUYING EQUIPMENT LIKE A PRO P 7

RESEARCH TRIALS SHOW THE GREATNESS OF GUAR P 8

OIL AND GAS OPPORTUNITIES THE FOCUS OF HOUSTON TRIP P 9

OPINION: USING TECHNOLOGY TO SECURE A COMPETITIVE MANUFACTURING FUTURE P 10

COOPERS EMBRACES ADVANCED MANUFACTURING P 11

OPINION: PHOTONICS DRIVING ADVANCED MANUFACTURING IN SOUTH AUSTRALIA P 12

FUND LOOKS TO NURTURE FUTURE INDUSTRY LEADERS P 13

GERMAN INNOVATION EXPERT PLANTS SEEDS OF THOUGHT IN ADELAIDE P 14

IN FOCUS: COMMERCIALISATION CASE STUDIES SERIES P 15

STATE GOVERNMENT GRANTS AND ASSISTANCE P 15

Cover image: Fleurieu Milk Company

Image this page: Almond Co

SOUTH AUSTRALIA’S MAGAZINE FOR DRIVING HIGH-VALUE MANUFACTURING GOVERNMENT OF SOUTH AUSTRALIA P 3

The withdrawal of Australia’s automotive manufacturing industry over the next four years has brought into sharp focus the need to accelerate the shift towards advanced manufacturing that competes globally on value and innovation, over cost and scale.

One of this Government’s major priorities is to diversify our state’s industry base and improve our capacity to grow new, innovative and value-creating industries, based on high-value-added manufacturing and knowledge-based services.

Manufacturing in the future will need to be founded more on high variability, high value-adding, high complexity and low volume across all sectors, and manufacturers will need to look beyond established supply chains and business models, for opportunities to create and capture value.

South Australia competes above its weight on a national level. Being a small regional

economy with a high proportion of small and medium-sized firms, makes it more difficult to attract investment, resources and develop the knowledge required to complete the needed transformation.

It is increasingly important for firms to develop their ability to offer solutions to problems that are global, to adopt and adapt new technologies and engage in research collaboration to create economic opportunities, as well as invest in the development of highly-skilled, multi-disciplined workers.

This will require a significant cultural change and improved management capability.

While some of South Australia’s manufacturers and research institutions are connected internationally, with access to new global knowledge, many are less successful at seeking out and translating our very own ‘new-to-world’ knowledge that is created in South Australia, into global business opportunities and new markets.

Through the Department for Manufacturing, Innovation, Trade, Resources and Energy, Government will legitimately play a role in brokering knowledge and relationships, by intervening to address poor connectivity between research and industry. In this way,

the Government is seeking to help the market to help itself become more effective, productive and competitive.

South Australia has made substantial commitments to investing in industry-led innovation and research, to drive industry transformation through strategies including Manufacturing Works, Skills for All, STEM Skills Strategy, Investing in Science and Our Jobs Plan.

In this time of change, these commitments are more important than ever.

This Government will provide the framework to build a future for manufacturing and our state’s capacity to capitalise on new global prospects that are both presented to us, and those we create ourselves.

Susan Close MP Minister for Manufacturing, Innovation and Trade

A MESSAGE FROM THE MINISTER

This Government will provide the framework to build a future for manufacturing and our state’s capacity to capitalise on new global prospects that are both presented to us, and those we create ourselves.


A group of 18 South Australian food sector SMEs has attended a series of innovation workshops in Melbourne and returned with bright ideas and high ambitions for their businesses.

Companies including Tucker’s Natural and Maggie Beer Products attended the sessions run by Mondelez International in late March and early April.

Mondelez International owns popular food brands such as Cadbury Dairy Milk, Vegemite and Philadelphia Cream Cheese.

Nicolas Georges, Mondelez International’s Director of Research and Development, said the company was embracing an open-door approach to fuel the local food sector.

“This is the first time SMEs beyond Victoria’s borders have participated in the event, thanks to the involvement of South Australia’s peak food industry association - Food SA as part of the Competitive Foods Initiative,” he said.

The Competitive Foods Initiative is a key program of the Manufacturing Works Strategy.

Food SA CEO Catherine Barnett said the program offered successful South Australian businesses the opportunity to collaborate outside their immediate networks.

“Mondelez has given them access to globally relevant thinking about export markets and growth potential,” she said.

“Innovation is so critically important for South Australian food businesses who are playing on a world stage to be competitive”.

Sam Tucker, Managing Director of Food Service Solutions at Tucker’s Natural, said the Mondelez workshops provided valuable consumer insights and better understanding of development processes.

“Just something so simple as understanding the capabilities of the companies attending has presented significant opportunities to develop new products and markets.

“The challenge for all of us remains how we can leverage this to realise the opportunities in the Asian markets,” Sam said.

Eduard Schroeder, SAGE Automation’s General Manager of Business Optimisation said the workshops gave him a non-technical perspective of innovation, R&D and marketing.

“I personally enjoyed the three days and it is great to see large companies collaborating with SMEs and giving them the insight to develop new products for different markets,” Eduard said.

“I have learnt a lot about the thinking of SMEs, their strengths, weaknesses and pain points.

This will help SAGE in the future to develop tailored programs.”

Phil Sims, Chief Executive Officer, Robern Menz Pty Ltd, believed the workshops were particularly effective.

“The learnings on innovation across the organisation and the opportunities to think creatively and collaboratively are all important value-adding strategies for food businesses,” Phil said.

“I would encourage Food SA to work with Mondelez to open up this workshop opportunity to many more members of Food SA.”

Dr Steve Lapidge, Director of Agribusiness at the South Australian Research & Development Institute was full of praise for the Mondelez experience.

“I have been to many innovation workshops over the years but none compare with the Food SA/Mondelez experience,” Steve said.

“Day 3 in particular was a fantastic next step in identifying future collaborations.

“For any food business looking to innovate this is a must attend.”

MONDELEZ WORKSHOPS PROVE AN INNOVATIVE SUCCESS

The learnings on innovation across the organisation and the opportunities to think creatively and collaboratively are all important value-adding strategies for food businesses.

18 South Australian food companies took part in the innovation workshop.


MONDELEZ WORKSHOPS PROVE AN INNOVATIVE SUCCESS

and international market development programs, innovation and collaboration opportunities, the South Australian Food Users’ Guide, Eat Local SA, the South Australian Food Industry Awards program, and the Food SA Summit - just to name a few.

In mid 2013, DMITRE provided funding support under the Manufacturing Works priority to develop a Competitive Foods initiative which is making a real impact with our food manufacturers in process innovation, equipment and market intelligence. Australia’s competitiveness is weaker than counterparts in Europe, Canada, New Zealand, and the US so there is a clear role for innovation and technology to improve this situation.

Together I hope industry and government can lead the South Australian food industry into a new era where food manufacturing is valued as one of the most vital sectors in our state, and leads the way in Australia. The opportunity exists, but we are not the only state or country that recognises it. We must be strategic, collaborative and transformational.

Food is undoubtedly the back bone of South Australia in the manufacturing sector. This is increasingly being acknowledged in South Australia and Australia more widely.

However, having the opportunity to travel internationally recently, has highlighted the increasing strategic focus on the food industry in many other countries. We are in a global manufacturing industry and need to be globally competitive.

It is important to remember food is the largest segment of manufacturing in South Australia, and I believe the one with the most stable growth opportunities.

Food manufacturing offers a number of significant and important attributes, and over a 17-year period has shown consistent growth. This includes being:

• The only major manufacturing sector to see an increase in employment in the last 17 years, with employment gains in food manufacturing increasing by 10% in 2012-13. Across the value chain this represents 17.3%, of the state’s employed workforce.

• Processed/manufactured food is currently valued at a record of $4.9 billion.

Working daily with food manufacturers I am inspired by the passion and positive outlook of the industry. Despite on-going challenges and caution, our state’s food industry and businesses are inherently optimistic.

The majority of our South Australian food manufacturers and producers are small to medium enterprises, often owner-operated or family-owned so there is a genuine scope to grow these businesses in size, output and exports, largely because they can be nimble and responsive to market demands and opportunities.

A recent survey of Food SA members highlighted that at the forefront of their challenges for future growth is; buying new equipment, upgrading machinery, increasing full-time employment across a variety of roles, and funding the expansion of sites or redesigning plant layouts.

This should be a focus for future planning to develop the industry so South Australian food manufacturers could provide even more significant opportunities for the local economy in relation to export markets in Asia, new product development, and innovation.

On-going collaboration and investment between our industry and the Government of South Australia is critical if these opportunities are to be realised.

The structure of the current model with Food SA and government is innovative and effective and has proven successful over the past four years. The model is unlike any other in Australia, although this may not be the case for much longer.

The model has developed quickly with strong industry engagement as indicated by the nearly four-fold growth in Food SA membership over that time, with an industry-led board and Food SA the central point for industry.

Food SA has collaborated or delivered on behalf of government through PIRSA many successful initiatives such as the domestic

OPINIONFOOD, MORE THAN THOUGHTCATHERINE BARNETT IS CHIEF EXECUTIVE OFFICER OF FOOD SOUTH AUSTRALIA INC.

Catherine Barnett


For the first time a dedicated industry hour hosted by Industry Capability Network South Australia (ICN SA), allowed exclusive access to Think Food exhibitors.

This industry hour provided local manufacturers with a unique opportunity to meet procurement managers and catering suppliers from large sites and identify alternative market channels in the supply chain of food to the defence and minerals sectors.

The combined ICNSA buyers serve over 20,000 meals each week and include National Wine Centre of Australia, Government House, Parliment House, SA Health, SANTOS and the Oil Industry Catering Service.

Think Food, South Australia’s annual and only food tradeshow, brings together manufacturers and buyers.

This year Think Food was part of the Tasting Australia program on Tuesday 29 April, at the Adelaide Festival Centre.

Hosted by Food SA and supported by Primary Industries and Regions SA, Think Food enabled manufacturers to showcase their products to local, interstate and international buyers.

These buyers included retailers, distributors, purchasing managers, chefs, caterers, tourism operators and more.

The event showcased Premium Food and Wine from our Clean Environment – one of Premier Jay Weatherill’s seven key priorities.

Think Food provided a cost-effective opportunity for South Australian manufacturers to exhibit

locally, meet buyers, build relationships and genuinely grow sales.

Exhibitors included Alexandrina Cheese Company, Beerenberg Farm, Bickford’s Australia, Butch’s Smallgoods, Chocolate 5018, Golden North Ice Cream, Honey Lady, Kinkawooka Mussels, Kytons Bakery, Maggie Beer Products, Mahalia Coffee, My Butcher, Rainbow Fresh, Robern Menz, Slape and Sons, T Bar, and Tucker’s Natural.

For buyers, Think Food provided a unique and free opportunity to meet up to 50 companies in one day, and discover new and quality products for their retail of food service outlets.

Buyers included Costco Wholesale Australia, Q Catering, Coles, Woolworths, Adelaide Convention Centre, Metcash, Drakes Supermarkets, Our United Food Co Australia, and Food Nation.

FOOD TRADESHOW BRINGS BUYERS AND MANUFACTURERS TOGETHER

Think Food showcased some of South Australia’s premium food and beverage manufacturers, such as Pangkarra Foods.


Food SA, in partnership with DMITRE, is holding a one-day workshop to assist food professionals with the difficult task of equipment purchase.

The workshop will combine theory and practical skills that will help business owners make better equipment purchase decisions.

Attendees will learn how in purchasing new equipment they should take into account strategic and operational factors, both in the long and short term. Expert equipment purchasers will share best practices and provide the elements necessary for food manufacturers to carry out due diligence and develop bid specifications for the purchase of new equipment.

As purchasing new capital equipment can be crucial to the success of businesses, the workshop will offer:

• professional insights, knowledge and tools to assist businesses

• an appreciation of due diligence

• an opportunity to test innovative concepts.

The workshop will benefit operations and production managers, financial managers and business owners.

It will touch on major purchase decision criteria such as:

• business drivers for new equipment purchases

• evaluation of cost/benefit

• evaluation of suppliers

• defining equipment

• regulatory requirements

• legal/insurance aspects

• templates for equipment specifications, a checklist of generic questions to ask equipment suppliers and a list of relevant standards

• practice through case study: attendees will prepare a fictitious (or real) example of an equipment purchase they want to undertake in the next three to six months. Facilitators will provide feedback on the case study.

This workshop is ahead of optional attendance at foodpro 2014 - Asia Pacific’s iconic food processing equipment manufacturing event, which is being held in Melbourne between 22 and 25 June 2014.

Specialist advisors will be on hand to support manufacturers when engaging with equipment and technology suppliers through targeted mentoring.

At foodpro, every aspect of the food and beverage processing industry will be on display with 300 exhibitors, including processing technology, plant equipment, ingredients, additives, testing equipment and more. It is the largest Australian event that showcases the latest global innovations and trends in food manufacturing, all in one location.

foodpro is held only every three years. It presents a unique opportunity for the workshop attendees to test newly acquired knowledge and discuss equipment purchases with specialist suppliers. Workshop participants can compare an extensive range of packaging solutions and food processing machinery.

DETAILS

Workshop Date: Thursday 5 June 2014.

Venue: University of Adelaide Waite Campus, The Aroma Café, Gate 3, Waite Road, Adelaide.

Cost: Food SA Members: $50; non-member: $150

foodpro Day (Melbourne): Tuesday 24 June 2014.

Cost: Accommodation and flights are to be paid separately by attendees. Food SA will assist with the coordination of accommodation for participants.

This workshop is limited to 15 participants. Registrations: www.foodsaequipment.eventbrite.com.au

Gingerbread icing robot for Perryman’s Bakery. Photograph courtesy of SAGE Automation.

BUYING EQUIPMENT LIKE A PRO


RESEARCH TRIALS SHOW THE GREATNESS OF GUAR

The guar plant is a legume traditionally grown in arid climates, and when its beans are crushed and liquid is added, a paste or gum is produced.

Guar gum has been around for some time and has many uses, including in textile and paper production.

But a bright spark discovered that when this gum, carrying sand particles in suspension, is injected into exploration wells, it fractured shale rock to release trapped gas.

In the United States, where the unconventional oil and gas industry is booming, guar is in huge demand.

When there are production shortages (such as in 2011), its price can soar to breathtaking levels, such as $25,000 a tonne.

The biggest source country for guar is India. In 2012, it was responsible for 80 per cent of world production.

In 2012-13, India exported 400,000 tonnes of guar gum, worth $4 billion. With few foreseeable substitutes to replace guar, the sub-continent has cornered the market.

Now South Australia has an opportunity to get in on the action.

The guar plant offers a number of possible uses, including in the oil and gas industry.

DMITRE is advancing a business case to grow and process guar here.

Terry Dwyer, a senior project officer with DMITRE, said South Australia could reap untold benefits from establishing a guar industry.

“South Australia’s unconventional gas sector is potentially on the verge of a major production upswing.

“It is currently gearing up to tap into reservoirs conservatively estimated at a trillion cubic feet of gas, trapped in shale or tight rock formations under the Cooper Basin – in South Australia’s far north-east.

“South Australia is perfectly positioned to grow and process guar and we have a ready market in the Cooper Basin.

“We have regional areas with the right climate and the right soils.

“Guar hits three marks. It’s a new crop for South Australian farmers, it’s a new manufacturing opportunity and it will greatly reduce fraccing costs in the Cooper Basin,” Terry said.

In December 2013 trial plantings of guar went ahead at four sites - Loxton, Port Augusta, Whyalla and Dulkaninna Station, north of Marree.

Representatives from DMITRE, PIRSA, SARDI, the Waite Agricultural Campus, the South Australian Non-Till Farmers Association and a processing company have formed a committee to oversee the project.

Terry said the trial plantings were all successful, with three of the four sites producing mature seedpod-bearing plants in three months. Only Whyalla proved difficult, because of a lack of water to the trial site.

However, two production hurdles need to be overcome. There is a serious shortage of suitably tested seeds and, although drought resistant, guar needs some irrigation.

Terry said the committee was confident both obstacles could be overcome.

He said the widespread benefits of a domestic guar gum industry were driving research and development.

These benefits included:

• supplying guar in alternate hemispheric periods and in times of world shortage and price hikes

• meeting a forecast increase in Cooper Basin unconventional gas exploration, drilling and production

• returning a source of nitrogen to the soil

• a “short season” rotational summer crop for farmers growing traditional winter cereal crops

• potentially opening up marginal country to commercial cropping.

While the main use of guar would be in the oil and gas industry, it has widespread applications in a range of other sectors, from food to fire fighting to mineral processing.

“South Australia is arguably the best placed state in Australia to support this new industry,” Terry said.

“We have considerable expertise in SARDI and at the Waite Campus of the University of Adelaide for breeding locally adapted guar varieties.”


He said the most useful aspect of the tour was the visit to San Antonio oil fields. This provided context to the transferability of technologies to South Australia.

“If South Australia can emulate even a small percentage of what’s happening in the US, this will be a major game changer for our economy,” Paul said.

“The leading indicator of the expansion of the unconventional gas sector in the Cooper Basin is the number of wells drilled.

“The transition from appraisal to development can be rapid, so the scale of success and level of diversification will depend on how well South Australia is able to provide similar infrastructure as found in the US.

“Initiatives such as the study tour help prepare local firms to participate in supply chains, should demand for Cooper Basin gas escalate.”

Paul said Australian Consul General Karen Lanyon and Ambassador Kim Beasley met members of the South Australian delegation and discussed their aspirations.

“The tour produced many business development plans, including plans by one of the participating companies for the acquisition of an American company.

“Three businesses who embarked on the tour as competitors returned as partners, agreeing to work together when bidding for larger jobs.

“This is a great outcome for South Australia and supports DMITRE’s clustering strategy.

“This level of collaboration will bear fruit when the Rex Minerals Hillside project proceeds,” Paul said.

He said representatives from South Australia’s ICT Roadmap met senior executives of South Australian ICT companies SRA and Petrosys, based in Houston.

This provided great insight into ICT applications in the sector and will also benefit the OZ Minerals/ IPACS/DMITRE centre of excellence remote operations project.

“Specifically, the tour provided the opportunity for all parties to develop a great set of contacts through multiple networking events and confirmed DMITRE’s commitment to South Australia’s business sector,” Paul said.

DMITRE’s Mining Industry Participation Office (MIPO) led a delegation of South Australian business people to Houston, Texas in January and February this year.

This followed a recommendation by the MIPO Advisory Council a year ago for a supplier study trip to the United States to give South Australian businesses direct exposure to mature petroleum supply chains.

According to Paul Goiak, Director of Industry Participation with DMITRE, the trip was made possible by the goodwill developed through the work of the Unconventional Gas Roadmap and the co-operation of major petroleum operators and suppliers.

In all, 13 South Australian businesses participated in the tour.

“All the business people who came on the Houston study trip have indicated they received direct and tangible benefits,” Paul said.

“They met with Tier One suppliers, investigated opportunities for licensing technology and joint ventures, gained a much better understanding of the oil and gas lifecycle and visited production facilities to view equipment.

“The American Australian Chamber of Commerce conference and dinner also allowed the delegation to meet fellow Australians who were doing business in the US.”

Paul said tour participants had learnt valuable lessons which could be applied to their own businesses back home, as South Australia prepares for the imminent expansion of its petroleum service sector.

As part of the trip, the delegation visited a number of major oil and gas facilities in Houston.

RESEARCH TRIALS SHOW THE GREATNESS OF GUAR

OIL AND GAS OPPORTUNITIES THE FOCUS OF HOUSTON TRIP


OPINIONUSING TECHNOLOGY TO SECURE A COMPETITIVE MANUFACTURING FUTURELEN PIRO IS GROUP EXECUTIVE DIRECTOR MANUFACTURING AND INNOVATION WITH DMITRE

on problem solving related to the application of new technologies. Other programs including the Photonics Catalyst Program, Medical Technologies Program and NanoConnect help manufacturers by raising awareness and understanding of new technologies, providing opportunities to experiment, and encouraging the scale-up, application and commercialisation of new products and services.

The message for companies, particularly small and medium, is to build your awareness, collect information and see how these technologies are being applied elsewhere. Engage in networks and common interest groups, and build scenarios about how and where technology can be applied in your business using a business model that captures the value created by the new technology.

DMITRE is exploring several new initiatives to accelerate the uptake of new manufacturing technologies, including factory visits, overseas study tours, and information and awareness raising forums. Further information will be made available about these in the next few weeks.

One of the icons of manufacturing in South Australia, Frank Seeley, often relates his view on the future direction for manufacturing as ‘innovate and automate’, and more recently adds ‘accelerate the pace of these’.

Technology is a powerful enabler of business innovation and when combined with the right business model(s) has the potential to create and capture new value for existing manufacturers.

A 2013 report from the McKinsey Global Institute, Disruptive technologies: Advances that will transform life, business, and the global economy, identified 12 technologies that could truly disrupt the status quo in coming years. These include mobile internet, automation of knowledge and work, the internet of things, cloud technology, advanced robotics, autonomous vehicles, next-generation genomics, energy storage, 3D printing, advanced materials, advanced oil and gas exploration and recovery, and renewable energy.

The pace of change for these technologies is increasing rapidly and with it the cost is decreasing; therefore the accessibility to medium-sized manufacturing is increasing. Technologies once the domain of large (often multinational) companies due to the prohibitive cost, are now within the ambit of medium-sized companies. Technology is changing the dynamics of industry competitiveness and is bringing manufacturing back to developed economies such as the United States.

Of course technology that is new to a firm requires investment (in equipment and people) and hence risk, but in the longer term this risk needs to be balanced against the significant benefits of adopting new technology that may grow market share at the same time.

DMITRE has a legitimate role to play here to help manufacturers reduce their risk, by looking over the horizon, raising awareness and connecting manufacturers to existing and emerging technologies.

For small and medium-sized companies, DMITRE’s Innovation Voucher Program provides an incentive to collaborate with universities

Technology is a powerful enabler of business innovation and when combined with the right business model(s) has the potential to create and capture new value for existing manufacturers.

Len Piro


Brewing and bottling beer are practices that have been around for hundreds of years.

However even these relatively ancient processes can benefit from advanced manufacturing technology and techniques, as Coopers Brewery has demonstrated.

Coopers has developed a strong track record of applying advanced manufacturing to beer production and across its Regency Park brewery supply chain.

One of the more recent steps was the implementation of MES (Manufacturing Execution System), from Siemens, across all areas of the brewery.

MES allows the integration of the Enterprise Resource Planning (ERP) with shop floor operations as well as the automation of management reports and material stock control and traceability.

Coopers has adopted a site wide Siemens platform integration PCS7 (SCADA) with Unilab (LIMS - Laboratory information system) and MES.

In 2013, Coopers undertook a $20 million capital expansion program.

The program has resulted in a doubling of the brewery’s lager cellar and culminated with the installation of a second bottling line, which was officially opened in November 2013.

The new bottling line has a capacity of 1200 bottles a minute and is dedicated to Coopers’ traditional products including Pale Ale, Sparkling Ale, Mild Ale and Stout, which make up more than 70% of production.

Coopers Operations Manager, Nick Sterenberg, said the new equipment would provide Coopers with the latest in European technology.

“However even the best equipment requires the best management,” Mr Sterenberg said.

“Coopers has a 10 year history with Lean and four years of Six Sigma. The application of these manufacturing philosophies has helped us achieve operational efficiencies equal to world best practice.

“We are still learning about Six Sigma and have a number to trained practitioners lead by one of our brewing team, Dr Jon Meneses, who is a “black belt”.

Mr Sterenberg said Coopers was a relatively smaller brewer by world standards, but this provided an advantage as what was a small, highly professional team was able to achieve just as much as the big brewers, but with less fuss and in a shorter period of time.

“This is always a challenge, but the harder we work, the quality of the problem just keeps getting better,” he said.

For further information please contact: www.coopers.com.au

COOPERS EMBRACES ADVANCED MANUFACTURING

Coopers Brewery has developed a strong track record of applying advanced manufacturing to its beer production processes.

USING TECHNOLOGY TO SECURE A COMPETITIVE MANUFACTURING FUTURE


OPINIONPHOTONICS DRIVING ADVANCED MANUFACTURING IN SOUTH AUSTRALIA

connects South Australian Industry with emerging laser and sensor technologies capable of transforming their businesses. Interest in this scheme from local manufacturers across a wide range of industry sectors has exceeded our expectations. There is a real hunger from local companies to innovate and create disruptive products. www.adelaide.edu.au/ipas/pcp

One example of a technology we are developing is our Intellibung. The first prototypes of these smart sensors for the wine industry have been installed in fermentation barrels in the winery of our industry partner Yalumba. These prototypes are currently wirelessly transmitting valuable information on the maturation of this year’s vintage.

With the announcement in late 2013 that we had secured $23 million from the Australian Research Council to establish the CNBP (the ARC Centre of Excellence in Nanoscale Biophotonics), we will be investing deeply in capacity growth to underpin a future suite of nanotechnologies for use in medicine.

The future is light. If you have an interest in connecting with the teams at IPAS then please contact us:

[email protected] [email protected]

Photonics is the science of the light. Our lives have been transformed by two waves of photonics innovation, the first being the discovery of the laser.

When first discovered more than 50 years ago, the laser was regarded as a scientific curiosity. Lasers are now a ubiquitous technology without which our society could not function. The second wave of photonics was the development of optical fibres and amplifiers capable of transmitting information around the planet at the speed of light, powering a communications revolution and the Internet.

We are on the cusp of the third wave of photonics – one in which smart sensors allow us to understand and control industrial processes, offer sophisticated medical diagnostics and monitor the production of food. Advanced sensors will give us the information required to do things better, cheaper and smarter.

The world-leading research institute that I lead at The University of Adelaide pioneers

transformational new approaches to sensing. We bring together 185 physicists, material scientists, chemists and biologists to do the underpinning science required to seed new technologies to support end users who need novel measurement tools to drive their research or develop innovative new commercial products.

I passionately believe in commercialisation of university research. Much of my time is spent bringing research teams and companies together to create and translate new products, services and solutions.

South Australia is poised to take advantage of this third wave. We already have the foundations of an advanced manufacturing base with expertise in photonics, including companies with expertise in electo-optics for defence, laser eye surgery systems and laser mapping for mining. The vision is to create a cluster of local enterprises with global reach, linked to our core research infrastructure and capabilities, selling light-based technologies. Our institute attracts capable young innovators with the potential to be the next generation of entrepreneurs in this space if we can provide the right economic and innovation ecosystem.

The recently launched Photonics Catalyst Program, established and funded by DMITRE,

PROFESSOR TANYA MONRO IS THE DIRECTOR OF THE INSTITUTE FOR PHOTONICS AND ADVANCED SENSING AT THE UNIVERSITY OF ADELAIDE

Professor Tanya Monro

The Intellibung technology is being used on wine barrels to wirelessly transmit information

on the maturation of the vintage.


The task of identifying and nurturing future industry leaders in South Australia is not an easy one.

But it is something the Industry Leaders Fund (ILF) has taken on with outstanding success.

Established in 2009, as a non-government, not-for-profit initiative, the ILF has become the pre-eminent body for investing in the development of individuals with the potential to enhance South Australia’s prosperity.

The ILF offers grants to help those with leadership aspirations to achieve their aims sooner than would otherwise be possible.

The grants are intended to support individuals who can demonstrate their:

• leadership potential through a history of roles at work or in the broader community

• interest in sharing the benefit of their talents, knowledge and achievements with industry and the community.

Successful recipients receive up to $50,000 to develop their leadership skills, experience and knowledge, and are entitled to become members of the exclusive ILF Grantee network.

Education and training is conducted in training establishments or can be provided on the job or at other work places.

Grants go towards study at the prestigious Harvard Business School in Boston, US; Mt Eliza, Melbourne Business School; Shinka Management Lean Manufacturing Japan Study Tour; INSEAD Business School in Paris, France; Wharton University in Philadelphia, US; University of South Australia and the University of Adelaide.

“I believe the characteristics exhibited by true leaders include vision, superior communication skills, passion, a powerful drive to succeed, strong inter-personal skills, strong ethics and a willingness to contribute to the community,” said Geoff Vogt, ILF Chief Executive.

Manufacturing, mining, engineering, electronics and pharmaceuticals are all South Australian industries that have benefitted from ILF grants.

Last year, $205,000 was awarded to 16 of the state’s most talented applicants in the organisation’s fourth year of annual grants funding.

This represents a 105 per cent increase on grants awarded in 2012.

“The Board was impressed by the high-calibre and diversity of applicants, hence the record number of grants.

“We want grant recipients to go on to generate wealth-creating, world-competitive, value-adding opportunities in South Australia.

“Hopefully they will re-establish a head office mentality in Adelaide.

“The ILF is rapidly gaining recognition by business leaders and the significant achievements of grantees to date is both humbling and rewarding,” Geoff said.

Potential applicants for grants in 2014 are encouraged to contact the ILF and look for more details at www.industryleaders.com.au

Applications close on Friday, 30 May 2014.

Award recipients for 2013 at the awards ceremony. Front row left to right, Richard Inwood, Tindo Solar; Peter Charlesworth, Minelab; Pia Goetjens, BGC Contracting; Shane Kelly, Kelly Engineering; Ben Marsh, Redarc; Hamish Hogben, TI Automotive; and back row left to right, Peter Cox, Gelista Gelati; Alexander Jenner-Oshea, S J Cheesman; Mark Coupe, FTE Solutions; Jenna Barnes, Nyrstar; Andrew Downs, Sage Automation; Stephanie Morris, Madeleine Pharmaceuticals; Dale Roberts, KOJO; Tom Clifford, Detmold; Jeremy Hawkes, Bowhill Engineering.

PHOTONICS DRIVING ADVANCED MANUFACTURING IN SOUTH AUSTRALIA

FUND LOOKS TO NURTURE FUTURE INDUSTRY LEADERS


South Australian businesses wanting to learn more about innovation and high-value manufacturing should visit www.dmitre.sa.gov.au/manufacturing_works

Dr Frank Wagner from Germany’s world-renowned Fraunhofer Institute recently visited South Australia to impart his knowledge about innovation and the future of advanced manufacturing to a captive audience of local manufacturers and industry leaders.

Dr Wagner is impressively credentialed. He is the head of the Competence Centre R&D-Management at the Fraunhofer Institute for Industrial Engineering.

He is a lecturer in Technology Management at Stuttgart University and also an Adjunct Professor at Queensland University of Technology in Brisbane.

Fraunhofer is Europe’s largest applied research organisation with an annual budget of two billion euros.

It is a private non-profit organisation employing 23,000 people – most of whom are qualified scientists and engineers. It operates 67 institutes and research institutes around the world.

Dr Wagner has spent more than 20 years in innovation and technology management, leading corporate development and organisational design projects for advanced manufacturing industries in America, Asia, Australia and Europe.

Dr Wagner’s message is simple: manufacturing has to embrace innovation to adapt to a highly competitive global environment.

In Europe, companies have been leveraging new technologies to increase their competitiveness.

These companies have come up with new products and services and adopted new business models as the result of technology-based innovation.

Under these new business models, companies often bundle products and services together and customise them to a client’s needs.

Dr Wagner said there were a number of ways countries could achieve manufacturing success:

• clear strategies and priorities

• fast, lean and agile engineering and manufacturing

• cooperative partners and clusters

• motivated and skilled people.

“To maintain our standard of living in Europe, we need to be better and smarter at making things. We cannot compete on cost alone.

“European and German governments spend a lot of money on research and development, billions of euros,” Frank said.

In Germany, federal and state governments interact closely with industry through the Fraunhofer to deliver industry led and co-funded applied research and innovation.

“Universities use money to create knowledge and innovative ideas, and Fraunhofer converts this knowledge back into money by working with industry to commercialise this knowledge,” Frank said.

He said Australia must go down the path of high-tech, high-value manufacturing, adopting innovation and creating new products and business models.

He gave the example of German company Truma, which manufactures mobile homes.

Truma created a product for the army of grey nomads towing caravans around Europe.

“It is sometimes hard to get your caravan into position in a camping site, so this company invented a manoeuvring device attached to the wheels which can be operated by a remote control,” Frank said.

“They patented this technology and now they’re selling this thing like mad. It is a great example of listening to your customer and designing a solution to meet their needs.”

While in Adelaide, Dr Wagner also spoke at an assistive technologies workshop.

DMITRE is collaborating with University of Adelaide’s Australian Workplace Innovation and Social Research Centre (WISeR) and Fraunhofer on an Assistive Technologies Demand Mapping Study.

The study involves local businesses identifying products and services that address the needs of the elderly, the disabled and their carers.

It will map existing and future assistive technology demands and opportunities and link them to capabilities within South Australia’s manufacturing sector.

Dr Frank Wagner

GERMAN INNOVATION EXPERT PLANTS SEEDS OF THOUGHT IN ADELAIDE


GRANTassist GRANTassist provides businesses with access to up-to-date information on State and Federal Government assistance and programs relevant to businesses. The GRANTassist tool enables a search for programs across industry sectors including manufacturing, arts, small business, medical and assistive devices, environmental, food, beverages and wine, mining and energy resources, forestry and automotive. www.grantassist.sa.gov.au

Our Jobs Plan To discuss how your business can get involved in the programs and initiatives outlined in Our Jobs Plan,contact DMITRE’s Manufacturing and Innovation team on (08) 8303 2102. Alternatively, visit: www.stronger.sa.gov.au/#ourjobs-plan

Innovation Voucher Program The Innovation Voucher Program (IVP) encourages collaboration between small to medium enterprises (SMEs) and research and development organisations. Vouchers are awarded to research and developers to help SMEs that lack the necessary resources to solve technical problems and encourage greater innovation within the manufacturing sector. www.dmitre.sa.gov.au/manufacturing_works

South East Forestry Partnerships Program The South East Forestry Partnerships Program provides funding to the private sector for capital investment in the timber industry, with the aim of creating and securing jobs in the state’s South East. Successful applicants are required to match the government’s investment on at least a 1:1 basis. www.dmitre.sa.gov.au/manufacturing_works

Medical Technologies Program The Medical Technologies Program supports the development of new, high-tech medical devices through collaboration between researchers, industry, end-users and government. Participants receive up to 250 hours of research expertise to assist with any stage of the research and development process. www.dmitre.sa.gov.au/manufacturing_works

Photonics Catalyst Program The Photonics Catalyst Program (PCP) supports the development of innovative photonic products such as sensors, lasers and optical fibres through project-based collaborations between South Australian manufacturers, researchers, end-users and government. Delivered through the University of Adelaide’s Institute for Photonics and Advanced Sensing, the PCP provides funding for engagement, the development of prototypes, testing of photonic devices and the adoption of new light-based technologies. www.adelaide.edu.au/ipas/pcp

NanoConnect The NanoConnect program supports South Australian manufacturers in experimenting with advanced nanotechnologies and engaging with key South Australian technology researchers. Delivered through Flinders University’s Centre for Nanoscale Science and Technology, participants receive technical feasibility assessments of their projects and two-month laboratory based ‘proof of concept’ projects. www.flinders.edu.au/science_engineering/research/nanoscale

Gateway Business Program The Gateway Business Program assists small to medium-sized firms prepare for export. The Gateway Business Program can meet eligible expenses incurred in developing international markets. www.dmitre.sa.gov.au/trade/gateway_business_program

Industry Capability Network The Industry Capability Network (ICN) helps businesses win work with emerging projects in South Australia, across the nation and in New Zealand by matching local skills and capabilities with industry demands. www.icn.org.au/sa_home

Major Projects Readiness Indicator The Major Projects Readiness Indicator is a simple online tool to help identify if a business is ready to supply goods and services to major projects and supply chains. The indicator demonstrates if a business has gaps that need addressing in order to access major projects, and provides links to useful information. www.dmitre.sa.gov.au/small_business/winning_contracts/major_projects_readiness_indicator

Business SA Coaching and Mentoring Program The Business SA Coaching and Mentoring Program provides individual and group coaching sessions for business owners to develop management and business skills and help their businesses grow. www.business-sa.com/business-support/coaching-and-mentoring-program

South Australian River Murray Sustainability Program The South Australian River Murray Sustainability Program provides funding to support irrigation farming enterprises optimise water use and achieve greater business resiliency and productivity. www.pir.sa.gov.au/sarms-iiip/home

SME Innovation Capacity Building Program The SME Innovation Capacity Building Program consists of three programs which help companies to increase their capacity to innovation. The Business Model Innovation program helps manufacturers to understand how they can create and capture greater value through innovative business models. The Customer Led Innovation program helps businesses develop an approach to transform their product and service offerings by better understanding their customers’ needs. The Manufacturing Services program helps manufacturing firms to develop service based innovation strategies linked to in-house competencies. www.dmitre.sa.gov.au/manufacturing_works

STATE GOVERNMENT GRANTS AND ASSISTANCE

The Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) hosts a series of Commercialisation Case Studies events, which feature short presentations by South Australian companies demonstrating successful design-based innovation and commercialisation.

The application of design-based innovation has allowed a number of South Australian

businesses to achieve successful commercial outcomes. Through case study presentations, manufacturers have the opportunity to hear from industry peers who have been able to create a competitive advantage for their business by implementing innovation and capturing new opportunities.

The events are generally held every two months, each featuring presentations from two companies.

If you’d like to join the mailing list to find out about the next Commercialisation Case Studies event please contact Crystal Trace, Senior Project Officer, at [email protected] or on 8303 2008.

IN FOCUS:

Brought to you by

COMMERCIALISATION CASE STUDIES SERIES

Chief ExecutiveGeoff [email protected] T: +61 8 8303 2435

Group Executive Director Manufacturing and InnovationLen [email protected] T: +61 8 8303 2327

Director Manufacturing and Small BusinessAdam [email protected] T: +61 8 8303 2446

Director Industry ParticipationPaul [email protected] T: +61 8 8303 2465

Director Tonsley, Innovation and Strategic ProjectsMegan [email protected] T: +61 8 8303 2520

Manager Industry Capability Network SA Darren [email protected]: +61 8 8303 2171

Mining Industry Participation Office (MIPO)Paul [email protected]: +61 8 8303 2465

Australian Industry Group (SA Branch)T: +61 8 8394 0000

GOVERNMENT OF SOUTH AUSTRALIA

Level 9, The Conservatory131-139 Grenfell StreetAdelaide, South Australia 5000

GPO Box 1264Adelaide, South Australia 5001DX 452

T. +61 8 8303 2400F. +61 8 8303 2410E. [email protected]

MANUFACTURING AND INNOVATION CONTACTS:

www.dmitre.sa.gov.au/manufacturing

Published May 2014.

No responsibility for any loss or damage caused by reliance on any of the information or advice provided by or on behalf of the state of South Australia, or for any loss or damage arising from acts or omissions made, is accepted by the state of South Australia, their officers, servants or agents. Produced by the Government of South Australia © May 2014. Content correct at time of printing.

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