Hot Topic The parent trap For or against shared parental leave?
Manufacturing Leadership Innovate to sustain How far do your business capabilities really stretch?
Exports Export, Britain Policy Connect puts export examples ahead
Workforce and Skills Time for a change How the revised GCSE agenda will affect the future of manufacturing
Manufacturing technologies Smart fabrics for 21st century soldiers Smart soldiers, smarter kit?
IT in Manufacturing Playing well with retailers Selling direct to consumers; good or bad idea? In partnership with:
Vital spark The UK electronics industry’s surge towards 2020
INTERVIEW John Perkins Outgoing Chief Scientific Advisor, BIS
www.themanufacturer.com | March 2015 | Vol 18 Issue 2
Welcome
EDITOR’S INTRODUCTION
It’s not often, if at all, that I talk about skills in my opening letter. I figure there’s enough people in the industry out there doing enough talking about this subject as it is. There’s not a factory tour, conference or dinner I do not attend where the issue of skills and future talent, or the lack thereof, does not rear its ugly yet expected head.
28
50
62 Hot top ic
the pare For or agant trap parental inst shared leave?
Manufac Leader turing sHip
innovate How far to sustain do capabili your business ties reall y stretch?
exports
export, Brita Policy Con in examples nect puts expo rt ahead
Workf and skiorce LLs
time for a How the change revised GCSE agenda will affe of man ufacturin ct the future g
Manufac tecHnoLoturing gies
smart fabr century ics for 21 st sold Smart sold iers iers, sma rter kit?
it in Ma nufactur ing
playing well Selling direc with retailers t to con good or bad idea sumers; ? In partners hip with:
Vital spa rk the uk industryelectronics towards’s surge 2020
Can the UK electronics industry deliver the next “killer app”? P28 interVieW
John perk Outgoing ins Advisor, Chief Scientific BIS
www.the manufac turer.com |
March 2015 |
The frustration is that with all of the noise about the skills gap, there are few willing to stand up and actually offer any real suggestions how to overcome the issue. There is the same rhetoric about “industry engagement with schools and students” and “glamorising the industry”, but who, honestly, is actually really doing this? With the general election only a few months away, it is no longer just those inside the industry screaming about the shortage of skilled workers. Both major political parties had the opportunity to speak on industrial policy at last month’s EEF National Conference held in London, and both took the opportunity to speak about the future engineering and manufacturing workforce. First up in the blue corner was Business, Enterprise and Energy Minister, Matthew Hancock. Hancock was quick to tout the current Government’s measures it had instilled relating to paid apprenticeships proudly pointing out the Government had doubled the amount of apprenticeships since the last election to two million with intentions of boosting this to three million if it was to serve another term. Hancock put his party’s “success” down to the fact it had “put a huge effort into changing the the culture of young people.” Stepping into the red corner was the Leader of the Opposition, Ed Miliband. To Miliband’s credit, he realised his audience and took this opportunity to announce the Labour Party’s industrial strategy and policy stance, even if it was a little light on detail. Stating emphatically that in order to increase the number of skilled workers in engineering and manufacturing “requires more than just a different policy”, Miliband proposed the idea of instating a new gold standard baccalaureate for vocational experience. Coupled with the intention to reinstate work experience into the national curriculum,
the Opposition Leader appeared to have come storming out of the gates. But Miliband let his left guard down when he swung the sluggish hook that could have been a deciding blow for the audience, stating “all of our young people, if you get the right grades, then we will guarantee you an apprenticeship”. While intentions were right, the execution was not, as this leaves one very obvious question; what about those who do not “get the right grades”? Anyone who has undertaken an apprenticeship before will attest to the amount of knowledge that is learnt on the factory floor. And for this I commend the Labour Party’s idea to reinstate work experience into the curriculum. But to think that by setting a benchmark to be achieved in order to encourage the best from students and therefore guarantee an apprenticeship, while carried out with the right intention, is both unrealistic and a potential deterrent to those young students who might not quite yet realise the accessible and challenging careers involved in manufacturing. He is right when he says that vocational and academic careers can be intertwined. But to set such goals for students to hit in order to qualify for vocational placements seems to be taking it down the same route as academia. The number of roles needed to fill the UK industrial landscape is many and varied. Let’s not sell ourselves short. No doubt we will hear plenty more about this issue in the coming months. Happy reading!
Callum Bentley Editor
Vol 18 Issu e2
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 1
Editorial Advisory Board
The Editorial Advisory Board ’s editorial advisory board provides insight and guidance to the editorial team on a regular basis, helping maintain the relevance and quality of the magazine’s content, both in print and online. The board also provides diverse and expert comment on key industrial developments.
Andrew Churchill Managing Director, JJ Churchill
Simon Edmonds Director, the Catapults Programme
Steve Evans
Manufacturing Engineer, FLAADS Manufacturing Engineering, ’s Young Apprentice of the Year 2014
Deirdre Fox
Director of the EPSRC Centre for Innovative Manufacturing in Industrial Sustainability
CEO, the Royal Academy of Engineering
Campbell Ferguson Director of Strategic Business Development, Tata Steel
Tony Hague MD, Power Panels Electrical Systems and Chairman of the Midlands Assembly Network
2 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
Global Manufacturing Director, Accolade Wines
Ben Taylor Assistant CEO, Renishaw Plc
Dave Mooney
Philip Greenish CBE
Beki Davies
Richard Lloyd
GCS&S Operations Team Leader, Spirit Aerosystems (Europe) Ltd and ’s Young Manufacturer of the Year 2014
Hywel Jarman Director of External Affairs, EEF
Managing Director, Drallim Industries
Pamela Petty Managing Director, Ebac Group
Andrew Peters Director, Siemens Congleton Facility
To find out more about our Editorial Advisory Board and the work they do to improve The Manufacturer magazine’s offering to its readers, go to: www.themanufacturer.com
ABOUT US
Meet the team Nick Hussey Chairman
Callum Bentley Editor
Nick has 20 years of experience in the publishing industry spanning titles in the UK, US, Asia and Australia. In addition to his commercial experience Nick has also worked in government, spending a year as managing director of Manufacturing Insight, a programme aimed at changing the image of manufacturing among young people. He holds several non-executive directorships and is a founder member of the IET’s Manufacturing Policy Panel. n.hussey@hennikgroup.com
Callum joined Hennik Research in 2013 as editor of ’s sister publication, the Lean Management Journal, before taking over as Editor of in June. He has a background in news for web and print, working for major regional news organisations in Australia. Callum has a passion for the automotive and aerospace sectors. c.bentley@hennikgroup.com
David joined Hennik Research in 2012 managing the marketing across the business. He has nearly 25 years’ experience in the conference and publishing industry having worked for the likes of LexisNexis, Kaplan Hawksmere and Payroll World. In February 2014 he was appointed General Manager of Hennik Research. d.farrow@hennikgroup.com
IT Editor Malcolm Wheatley malcolm@malcolmwheatley.co.uk
Contributing Editor Ruari McCallion r.j.mccallion@btinternet.com
Reporter Andrew Putwain a.putwain@hennikgroup.com
Design
Victoria Fitzgerald Features Editor
David Farrow General Manager
Editorial
Victoria joined Hennik Research in January 2014 as editor of the Lean Management Journal after spending three years in New York City as a news journalist for an international online news organisation. She recently moved to as features editor where her focus has moved to industrial policy and initiatives driving the future of UK manufacturing. As a former teacher, Victoria has a passion for apprenticeships and education. v.fitzgerald@hennikgroup.com
Art Director Martin Mitchell martin@opticjuice.co.uk
Designer Alex Cole alex@opticjuice.co.uk
Sales and Events
Operations Manager Grace Gilling g.gilling@hennikgroup.com
Project Director Matt Chilton m.chilton@hennikgroup.com
Sales Manager Sarah Hough
Henry Anson Sales Director
Jonny Williamson Web Editor
Henry is responsible for Hennik Research’s commercial activities, developing new concepts and products for ’s readership. Henry is keen to build a bridge between the manufacturing community and the service sector which supports it. h.anson@hennikgroup.com
Eva Lindsay Event Production Manager Eva joined in 2012 having worked in the events industry for four years across a number of sectors, with her primary focus on defence. Drawing on her broad experience, Eva will be heading up the event content team and helping to grow and develop the event programme, with special focus on the company’s popular Factory Tours. e.lindsay@hennikgroup.com
Jonny joined having spent the past three years working as a print and online features journalist for global media outlets covering manufacturing, commercial aerospace and business leadership. Jonny is responsible for boosting and updating ’s online presence with a strong focus on community engagement. j.williamson@hennikgroup.com
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ISSN 1477-3201 BPA audit applied for June 2009. Copyright © Hennik Research 2011. BPA Worldwide membership Applied for August 2014
Marketing Director Kate Birinder k.birinder@hennikgroup.com
Telesales Manager Deborah Sowman d.sowman@hennikgroup.com
Awards Manager Laura Williams l.williams@hennikgroup.com
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March 2015
CONTENTS
08 News and regular columns
Manufacturing Technologies
A summary of manufacturing news and events with commentary on industrial research and policy 22 Out & About visits Millbrook Technology Park, The Proving Factory and checks out Torin-Sifan’s new EC Manufacturing & Technology Centre 24 Best of Online What you wanted to read most about ’s February website 26 Hot Topic: The parent trap Victoria Fitzgerald examines the new shared parental leave legislation and how it might impact the manufacturing sector 28 Sector Focus: Vital spark Ruari McCallion shines a light on the UK’s small but mighty electronics business, illuminating its global reputation and big plans to strive even further 34 Interview: The science of success Having bowed out of BIS after three years, Professor John Perkins, chats to Victoria Fitzgerald about past successes and ventures new 37 60 second interview: Robert Morton, vice presidentEurope, National Instruments, discusses the firm’s recent success
60 Programming for the many-core revolution: Jonny Williamson talks the programming revolution with Royal Academy of Engineering research fellow, Dr Antoniu Pop 62 Smart fabrics for 21st century soldiers: The armed forces is destined for the revolution with the help of an electronic designer and a weaver. Jonny Williamson follows the thread
Pillar features Manufacturing Leadership
IT in Manufacturing 66 Playing well with retailers: NetSuite’s vertical industry lead for manufacturing, Gavin Davidson, presents frictionless omnichannel commerce and its appropriateness for manufacturing 70 IT contributing editor, Malcolm Wheatley tackles overall equipment effectiveness and how it can only be achieved by decent management 72 Talk of the Industry: Terry Scuoler urges for transparency and openness in the strategic assessment of infrastructure
40 Learn to lean: Lean Management Journal editor Andrew Putwain highlights some of the articles from the latest edition of the LMJ which focuses on thinking outside the box when implementing a lean programme
OUTBOUND REPORT Which ERP System is right for you?
Exports
2015 ERP Buyer’s Guide
46 Export, Britain: Government has launched another scheme to push exports, but does manufacturing need something more than another Government initiative to let it securely board the export train?
Workforce & Skills 48 Employee of the Month: Ruby Swindle, Supply Chain Trainee, Crown Paints 50 Time for a change: Currently undergoing a massive overhaul, the D&T curriculum is set to be propelled into the 21st Century. Victoria Fitzgerald finds out more 52 Snapshots: Coventry’s Manufacturing Technology Centre and Bentley rev up their recruitment drive
Manufacturing Services 54 Ready to serve: ’s chairman Henry Anson and Professor Tim Baines from Aston Business School share the relevance of the newly launched Manufacturing Services Thought Leadership Network
Energy 58 Serious opportunity: Mark Knowlton from the GROW: Offshore Service discusses the firm’s pledge to work with the UK manufacturing sector
6 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
NEWS
www.themanufacturer.com/news
Special Focus Annual Manufacturing Report The Manufacturer’s Annual Manufacturing Report 2015 finds UK industry in broadly positive territory.
C
onfidence is high since the post-2008 downturn and a range of investment projects are now being undertaken. The Government’s handling of the economy is regarded as good overall but less so when it comes to manufacturing, specifically. Unsurprisingly, UK manufacturing needs more skilled workers. Just under 90% of respondents said they have multiple vacancies and more than one-third said they have 10 or more. UK manufacturing is prepared to give youngsters a chance: nearly nine out of 10 (87%) respondents said they had given a first job to a school, Further Education (FE) college leaver, or university graduate. There is significant concern about the “suitability for work” of young school and FE college leavers taking up their first job. Nearly half (48%) said that 16-yearold school leavers were either “poorly” or “very poorly” prepared for work; 17/18-year-olds fare little better, whether from school or FE: again, just under half (47-48%) of employers rated their new recruits at that age as either “poorly” or “very poorly” prepared for work. On the more positive side, over onethird (39%) of FE leavers were rated as “well prepared”; just under 30% of school leavers reached the same category. There is clearly a need for manufacturing and schools to re-establish links and improve mutual understanding. University graduates are much more highly rated. Two-thirds (66%) of graduate recruits were described as “well” or “very well” prepared for the workplace. Companies are prepared to invest in ongoing education and training, with 71% saying that they offer apprenticeships and more than half (52%) of those are at advanced or higher levels. The list of “hard to find” skills is headed by Engineering and Automation (58%), followed by Technical/Practical (48%) and Problem Solving (37%). More than
8 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
half (53%) said that they have invested in further training and development opportunities in order to retain hard-tofind skilled staff and around one-third said they have offered higher pay, more incentives, management and leadership training or “job enrichment” programmes. Other key findings: Nearly three-quarters (73%) of those surveyed say they “operate globally”, and almost as many (71%) see developing international trade as very important or vital for future growth. Biggest barriers to export success are insufficient resources (50%), and insufficient funds and insufficient personnel/HR structure (39% each). Manufacturers identified new product development/innovation (79%) and improving customer relationship management (75%) as key business focuses over the past 12 months. They remain the lead priorities for 2015 as well.
Managing cashflow, a top concern for many years, is now a major focus for just 24% of those surveyed. Investment is at record levels with key areas identified as computer software and systems (63%); machine tools (57%); and computer hardware (45%). Investment in automation is now reaching very high levels; three-quarters (75%) of respondents said they had invested in automation over the past five years. The main drivers being business efficiency, reduced cycle time and improved quality. Improving health and safety and the working environment are also key concerns. FURTHER INFO: The full Annual Manufacturing Report 2015 can be downloaded here: bit.ly/2015AMR
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NEWS www.themanufacturer.com/news
MANUFACTURING NEWS
AUTOMOTIVE
Could Rolls-Royce Motor Cars be developing its own luxury SUV? The company’s chairman and chief executive have penned an open letter detailing a “seminal moment” in the company’s 111-year history, an all-new vehicle “that can cross any terrain”. Describing the vehicle as high-bodied with an aluminium architecture, the executives confirmed that Rolls-Royce is developing a luxury vehicle with “exceptional presence, elegance and purpose” that meets its customers’ “highly mobile, contemporary lifestyle expectations”. Rolls-Royce’s decision may have been influenced by the recent actions of one of its biggest competitors. On January 12, Bentley Motors announced that its own “allnew and ground-breaking luxury SUV” would be revealed later this year, named Bentayga. bit.ly/RRsuv GKN earns technology partner status with Porsche. Awarded for its development of a high-performance eAxle for the 918 Spyder, an advanced plug-in hybrid supercar; GKN Driveline’s eAxle module supports full-electric mode, all-wheel drive and provides a boost function. A development of the company’s eAxle drive, the module supplements the 918 Spyder’s hybridised 4.6-litre V8. A specially developed compact differential engages the torque, giving the 918 Spyder optimum power distribution at all times. The differential also disengages the module to minimise drag losses and maximise efficiency. bit.ly/GKNPorsche
Typhoon is already regarded as a world-leading combat aircraft
CONTRACT WINS
BAE secures £165m contract for further Typhoon enhancements. Under what is known as the ‘Phase 3 Enhancements Package’ (P3E), the contract will see the jet receive upgrades including improvements to the maintenance and mission systems and the integration of the MBDA Brimstone 2 precision missile. The contract, signed at IDEX 2015 in Abu Dhabi, helps sustain more than 200 highly skilled engineering jobs in Lancashire where the upgrade work will take place. This latest upgrade, with the integration of Brimstone 2, opens up the air-to-surface capability of the aircraft even further to cope with a wide variety of targets, including fast moving vehicles. bit.ly/BAETyphoon
COMPANY INVESTMENT
How the new centre (right) will fit into the existing Furness College site
TECHNOLOGY
Technology is ticket through tough times for subsea industry. The fast-growing UK subsea sector, which supports 60,000 jobs, is in for two years of tough times and will only weather the storm if it embraces innovation and new technology, says industry body Subsea UK. Its chief executive, Neil Gordon commented: “The swinging cap-ex cuts and low crude price are beginning to bite. The UK’s subsea sector came out of a strong 2013 to a relatively flat second half of 2014. The existing order book kept the industry going but, as this dries up and projects are abandoned or postponed until the oil price recovers, we are in for major challenges.” bit.ly/UKsubsea
10 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
COMPANY INVESTMENT
£multi-million advanced manufacturing site coming to Cumbria. A planning application has been submitted for a £3.38m Advanced Manufacturing Technology Centre to be built at Furness College, Barrow. The modern centre is hoped to provide the college’s students with the skills and training required by some of the area’s biggest employers, including BAE Systems; Siemens; GSK; Kimberly Clark, and Centrica. The 14,000 sq ft site will host engineering and advanced manufacturing research, as well as rapid prototyping and high voltage test laboratories. It’s thought that it will allow the college to recruit up to 1,150 apprentices at any one time. bit.ly/CumbriaAMTC
Cosworth opens Advanced Manufacturing Centre. Prime Minister David Cameron has visited Cosworth’s new 38,000 sq ft AMC in Northampton, praising the company for its contribution to the UK automotive industry. The centre makes use of automation to produce engine components for some of the world’s leading performance car manufacturers. With orders currently standing at £75m, the new facility will be the only site in the UK to offer plasma ion coating, a technology that reduces engine friction and weight – helping to lower vehicle Co2 emissions. bit.ly/ CosworthAMC
NEWS www.themanufacturer.com/news
Over three quarters of manufacturers say that Government, industry and academia must work together to secure the UK’s role in the 4th industrial revolution
TECHNOLOGY
Are UK manufacturers ready for Industry 4.0? New research from EEF has found that Britain is on the cusp of a global, technology-driven 4th industrial revolution, with eight in 10 manufacturers (80%) saying it will become a business reality by 2025. The trend for reshoring is also set for a boost, with half of manufacturers (50%) saying that Industry 4.0 will enable more production to be brought back to the UK. However, the UK’s ability to be a frontrunner hangs in the balance with almost six in 10 manufacturers (58%) saying that the UK is in danger of being left behind. bit.ly/4IndRev
INNOVATION
LUTZ Pathfinder pod (Image courtesy of Simon Stuart Miller)
ANNOUNCEMENTS
RDM Group opens the door to UK’s first driverless pod. The advanced manufacturing specialist has showcased a prototype of its driverless pod, the LUTZ Pathfinder. The electric vehicle can seat two people, travel at a maximum speed of 15mph and boasts a range of 40 miles. With safety the number one factor, 19 different types of sensors, cameras, lasers, radars and LIDARs – provided by the University of Oxford’s Mobile Robotics Group – are used by the vehicle to navigate. The build of the first prototype has taken just 10 months to complete and has involved eight specialist engineers at its £400,000 advanced engineering centre in Coventry. bit.ly/DriverlessPods
MIT’s Robert Langer takes home top engineering prize. The chemical engineer has been named 2015’s recipient of the Queen Elizabeth Prize for Engineering (QEPrize) at the Royal Academy of Engineering in London. A global £1m prize, the QEPrize celebrates those responsible for ground-breaking innovations that have been of global benefit to humanity, as well as helping to raise the public profile of engineering. Langer won for his technologically disruptive change in controlled-release drug delivery systems, important in helping to manage either an underdose or overdose of medication. Controlled release drug delivery gives a patient the correct dose over a long period, yet requires far fewer frequent doses. bit.ly/LangerQEPrize
12 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
GOVERNMENT
Labour warned off ambitious targets to score votes. The Institute of Mechanical Engineers’ head of education, Peter Finegold has advised against the party offering unreachable targets on apprenticeships in a bid to gain favour before the general election. His warning comes after Ed Miliband said Labour would guarantee apprenticeships for all school leavers in England who get “the grades” by 2020. Finegold maintains that it’s “quality not quantity” that will strengthen the UK economy, as well as the involvement of local, smaller firms. The leader of the opposition said that higher wages and better training were integral to improving UK productivity. bit.ly/LabourTargets Government should “prioritise manufacturing” says Institute of Civil Engineers. The manifesto from ICE urges politicians to place manufacturing at the top of the political agenda for the forthcoming election. The paper also calls on political leaders to ensure the next UK government focuses on an infrastructure plan for the long-term. The 10 key areas put forward include faster progress on the Davies airports commission, and better collaboration with local government to work through the road maintenance backlog. The ICE is also calling on energy market reform to enhance the decarbonisation of electricity and manage the rising costs of energy. bit.ly/GovtPriorities Business friendly regulation saves firms over £40m. Business Secretary Vince Cable, and Business and Enterprise Minister Matthew Hancock have announced that better enforcement of regulation is saving businesses more than £40m annually. The Focus on Enforcement review programme, which asks firms to identify poor enforcement practices that hold them back, has benefited around one million businesses and boosted growth in nine vital sectors of the economy from pharmaceuticals to food manufacturing. Regulators including the Health and Safety Executive, Environment Agency and Food Standards Agency have responded to the reviews with major reforms which have been welcomed by trade bodies across the country. bit.ly/BizRegulation
MANUFACTURING NEWS
TECHNOLOGY
Milestone for world’s first digital factory. Construction has begun on the UK’s first fully-reconfigurable digital factory at the University of Sheffield Advanced Manufacturing Research Centre (AMRC). Factory 2050 is a response to an increasing need for advanced manufacturers to be capable of making rapid changes to product designs, as a result of ever-changing customer demands. Due to be completed by the end of 2015, it’s designed so that machines and manufacturing modules can easily be moved around the shop floor. The factory is another step towards the development of the region’s recently announced Advanced Manufacturing Innovation District, Europe’s largest research-led advanced manufacturing cluster. bit.ly/digitalfactory
FUNDING & FINANCE
Cable announces £20m for UK industrial biotechnology. Business Secretary Vince Cable has unveiled the winners of a £multi-million competition to bring innovative UK biotechnology projects to market. A total of 23 projects, ranging from making biofuel from household waste to using bacteria to make the building blocks for new medicines, will share almost £20m from the Industrial Biotechnology Catalyst, introduced in January 2014 to support collaboration between UK researchers and the emergent industrial biotechnology sector. Industrial biotechnology is a rapidly emerging industry in the UK and is predicted to be worth up to £12bn by 2025. bit.ly/CableBiotech
APPRENTICES
Record for Yamazaki Mazak in 25th year of apprenticeship programme. The company is on the lookout for 25 new apprentices (aged between 16 and 22) in 2015, to be based at its European headquarters and manufacturing facility in Worcester. One of the most advanced in the Europe, the site currently produces around 100 machine tools a month. Its varied and comprehensive training programme combines practical hands-on learning with college-based further education. The first year comprises of practical off-the-job training with Worcestershire Group Training Association (WGTA). Over the following two or three years apprentices progress through a variety of different departments across the site, and will be gradually introduced to Mazak’s product range to hone their skills. bit.ly/MazakApprentices
Dates for your diary MARCH
23-24
Third International Conference on Advances in Engineering Sciences and Applied Mathematics (ICAESAM’2015). The International Refereed Conference Proceedings will be blind peer reviewed by two competent reviewers. The post conference proceedings will be submitted to be indexed in Thomson Reuters, CiteSeerX, and Google Scholar for possible indexing. www.iieng.org/2015/03/24/60
23-25
Third Annual Oil & Gas Mobility Summit, this upcoming summit taking place at the IQPC in London will have mobility experts exploring the impact of mobility on business functions and operations. Businesses can learn where they can effectively communicate and roll out a mobility programme while making functions smoother and more profitable. http://atnd.it/18932-0
APRIL Conference of the Association of Computational Mechanics in
8
Engineering (ACME-UK 2015) taking place in Swansea ACME-UK 2015 will be a forum for developing ideas and establishing new collaborative research links, helping to build research networks within UK and at an international level. Keynote speakers include scientists from Massachusetts Institute of Technology and George Mason University. www.swansea.ac.uk/engineering/research/acme2015/acme2015/
21-23
Sustainability Live! Held at Birmingham NEC, Sustainability Live! brings together the ET&ES, ICU, NEMEX and IWEX exhibitions. Focusing on the environmental, land remediation, energy and water sectors respectively, the event stages conferences, seminars and networking with industry achievement and excellence recognised at the Industry Achievement Awards ceremonies. www.sustainabilitylive.com
28-29
Making Pharmaceuticals held at the NMM Exhibition Centre in Birmingham, the Institution of Mechanical Engineers (IMechE) is to take a role in compiling the content of Making Pharmaceuticals – the only event in the UK dedicated to the detailed and complex issues associated with sourcing, manufacturing, outsourcing and delivering consistent pharmaceutical products to the market. www.making-pharma.com
29-30
Med-Tech Innovation EXPO 2015 held in Coventry, this is an event for the UK medical device R&D, design and manufacturing industry and will be hosted by Medilink UK and Med-Tech Innovation. The conference will address key issues facing industry, including innovation, internationalisation, NHS adoption, supply chains and skills. www.mtiexpo-uk.com
MAY
6-7
All-Energy Conference & Exhibition the All-Energy exhibition and conference held in Glasgow is the UK’s largest event devoted to renewable energy. It is relevant to companies actively involved in all areas of the renewable energy industry of wind (onshore and offshore), wave, tidal, hydro, hydrogen and fuel cells, solar and biofuels. www.all-energy.co.uk
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 13
FOR THE DIARY
Upcoming Events To see a full events listing please visit: themanufacturer.com/events Energy Management
Factory Tour**: Sony
19 March 2015, Conference Aston, Birmingham
21 April 2015, Pencoed
Free for manufacturers*
Sony is the market-leading provider of Broadcast and Professional Audio/ Video products and solutions. Its strong technological driven supply chain, innovative high quality assembly, test and worldwide logistics demonstrate manufacturing techniques otherwise only found in Japan. This factory tour will focus on supply chain, innovation, and sustainability.
Businesses are coming under increased pressure to tackle rising energy prices, comply with government regulation, and remain competitive in the global economy. Increasing efficiency and reducing energy costs is becoming a key strategic objective, which is why this year’s Energy Management Conference will help you direct your efforts to the solutions that can make a difference to your business. themanufacturer.com/Energy2015 #TMEnergy
Lean Manufacturing 19 March 2015, Conference Aston, Birmingham Free for subscribers* The Lean Manufacturing Conference is aimed specifically at optimising and overcoming challenges within your current lean programme. It will address engagement issues across all levels, how lean can help during times of business difficulties and overall employee education. themanufacturer.com/Lean2015 #TMLean
Early Bird: £325 +VAT if booked on or before 14 April 2015
www.themanufacturer.com/ factory-tours #TMFactoryTours
28 April, 2015, Maple House etc. venues, Birmingham Free for subscribers* With versatility and consumer-driven products starting to heavily influence manufacturing, now is the time to invest in advanced technology. This year’s 3D Printing and Additive Manufacturing Conference will provide you with information on the materials, applications and techniques involved in this exciting new field. Learn how through the simple convergence of advanced technology and traditional manufacturing processes, you’ll be positioning yourself ahead of the competition. themanufacturer.com/3DAdditive #TM3D | #TMAddMfg
Connect ERP 14 May, 2015, Reading £195 +VAT including accommodation***
Factory Tour**: Entek International Ltd 22 April 2015, Newcastle upon Tyne Early Bird: £325 +VAT if booked on or before 15 April 2015 Entek is a highly automated manufacturer of PE battery separators which export 100% of its product. The factory production line runs 24/7 and they have implemented lean and continuous improvement programmes throughout the site. This tour will look into policy deployment, performance management, reward and recognition as well as training and development. www.themanufacturer.com/ factory-tours #TMFactoryTours
Connect with our events team on twitter: @TM_Events. For general enquiries or to book your place, email events@hennikgroup.com or call us on 020 7401 6033 (Opt 3), stating which event you would like to attend and your contact details. * For manufacturers only. Subscribers to The Manufacturer are guaranteed a place. If you do not wish to subscribe, there will be a cost of £395 +VAT per delegate from manufacturing companies. £995 +VAT per delegate - standard booking fee for delegates from consultancies/solution providers. ** For manufacturers only. All early bird discounts require payment at time of registration and before the cut-off date in order to receive any discount. Once the early bird offer expires, standard delegate rate £395 +VAT will apply. All prices are exclusive of VAT. *** For manufacturers only. The £195 +VAT rate is for delegates taking part in pre arranged one-to-one meetings and includes accommodation. Delegates who don’t want to take part in the pre arranged one-to-one meetings will be charged the full event price £395 +VAT. The standard rate £395 +VAT doesn’t include accommodation. If you would like to book your own accommodation, the price will remain at £195 +VAT. T&Cs apply.
14 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
3D Printing and Additive Manufacturing
Exclusively for companies looking to implement or upgrade their ERP system. Connect ERP has changed the way UK manufacturers approach software selection by minimising the overall time and effort involved in qualifying potential enterprise software vendors. This unique event offers a one-of-a-kind opportunity for you and your team to see the premier enterprise software solutions in the world, in one place and at the same time! erpconnect.co.uk #ERPConnect
Connect MES 17 June, 2015, Birmingham £195 +VAT including accommodation*** Connect MES is a unique event providing delegates with the opportunity to meet with leading MES solution providers, condensing 6 months of research into a single day. Understanding how best to streamline production and access data in real time is critical to running a modern and dynamic business, MES will be key in achieving this. mesconnect.co.uk #MESConnect
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APPOINTMENTS
Johanna Dow
Business Stream
Business Stream, Scotland’s largest provider of non-domestic water and waste water services, has confirmed Johanna Dow has been appointed as permanent chief executive as the business looks towards the opening of the English nondomestic retail water market in 2017. Johanna, who was appointed as interim chief executive in October 2014, has been with Business Stream since its inception in 2007.
Professor Richard Barker
Precision Medicine Catapult
Professor Richard Barker is the new chairman of the Precision Medicine Catapult, set to open later in 2015. Professor Barker will help Innovate UK find a home for the new Precision Medicine Catapult (bit.ly/1KnjGnC) which is already generating significant interest from leading UK universities and hospitals. Professor Barker spent seven years as director general of the Association of the British Pharmaceutical Industry, and is currently founding director of the Centre for the Advancement of Sustainable Medical Innovation, based at Oxford University
Peter Baxter
Business Stream chairman Ronnie Mercer said: “No-one knows Business Stream better than Jo. As chief executive she brings a very strong commercial understanding as well as an exemplary focus on our Scottish customers. “Jo has also been at the forefront of efforts to ensure market reform works for customers in England, and since her interim appointment in October of last year has thrown herself into meeting customers, industry stakeholders and government to further this important objective.”
and UCL. He is also chairman of the South London Academic Health Science Network and the corresponding Genomic Medicine Centre. Universities, Science and Cities Minister Greg Clark said: “The Precision Medicine Catapult is a testament to the UK’s strength in the life sciences sector and our commitment to ensuring the UK takes the lead in this emerging area. Richard Barker’s expertise and experience make him an ideal candidate to drive forward this important addition to our catapult network.”
Delcam
Manufacturing software developer Delcam announces that Pete Baxter has been appointed to lead Delcam in the new role of vice president. Pete joins Delcam from its parent company, Autodesk, Inc, where he was a vice president of sales and served as the country manager for Autodesk in the United Kingdom. “I am delighted to be joining Delcam, and helping create the next generation of manufacturing software,” Mr Baxter said.
Theanna De Sancho
“The company has an unrivalled reputation for the support and industry-leading products it offers to manufacturing companies around the world. I look forward to working with Delcam’s staff and reseller channel to accelerate the growth of the business and to deliver an even better manufacturing experience to our customers.”
ElringKlinger
Theanna De Sancho has joined the HR & training team at Redcar automotive parts manufacturer ElringKlinger where she will be responsible for developing the company’s existing in-house apprenticeship programme and Year in Industry schemes. Ms De Sancho previously oversaw 52 apprentices in her role of training coordinator at ICL Fertilizers, formerly Cleveland Potash near Staithes.
In her new role she will be responsible for working across ElringKlinger’s 200-strong workforce, developing employees within the company – from new starters to longer serving members of the team. De Sancho will also work closely with local education providers including both Teesside and Northumbria Universities and Middlesbrough College to build upon existing links and future STEM partnerships, for employees and students alike.
To notify The Manufacturer of your company’s appointments, please contact Callum Bentley at: c.bentley@hennikgroup.com or: 0207 401 6033
16 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
FRE subsc E for ribers ! Full term s and condit and io www.t can be view ns apply hema nufac ed at tu re 3DAd ditive r.com/
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3D Printing and Additive Manufacturing 28 April 2015 | Maple House etc. venues, Birmingham @TheManufacturer @TM_EventsTeam #TM3D #TMAddMfg Book now: 020 7401 6033 (Opt 3) events@hennikgroup.com
With machine and material prices tumbling, and capabilities rapidly accelerating, now more than ever is the time to invest in 3D Printing and Additive Manufacturing technology for your business. While the benefits are clear, this kind of technology has its limitations, and it’s imperative that it’s incorporated into the entire manufacturing process. Attend this year’s 3D Printing and Additive Manufacturing Conference to understand the geometric freedom, part functionality and environmental sustainability that this advanced technology can bring, while ensuring that you don’t lose sight of your traditional manufacturing techniques. Working hand in hand, the convergence of this brilliant technology with conventional processes can open the door to future manufacturing success.
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Legally MIND minded THE GAP & DIGITALLY MADE
LEGALLY minded.
Y
Can your standard terms work for overseas sales? Robert Bryan, partner at BPE Solicitors LLP explores.
ou’ve spent a few pounds with your legal team in order to have a set of absolutely perfect terms and conditions of supply every clause you could ever want, and a few more besides, sit there in glorious 8pt Times New Roman font, printed on the back of every quotation, order form, contract and invoice. What more could you possibly need? The answer, if your business is one of the ever-increasing numbers to whom national boundaries are no object to trade, is specialist knowledge of those countries into which your goods are being sold. Your terms and conditions may well contain a clause stating that English law applies to the contract between you and your supplier, or between you and your customer, but what if the supplier’s or customer’s terms contain a similar clause in relation to their country? If your terms apply English law, and the supplier’s or customer’s terms apply French law, what is the position? European law, helpfully, states that in the absence of an agreement position, contracts for the sale of goods will be governed by the law of the country in which the seller is based. Except for distribution agreements, where it will be governed by the law of the country in which the distributor is based. Oh, and there are different rules for auctions, for service contracts, for franchise agreements and so on. The law has never been simple. But that doesn’t help when trading outside the European Union, where there are no equivalent rules. In some Canadian provinces, for example, what you and I would consider a mere buyer of goods can be classed as a franchisee, and would enjoy statutory rights beyond those enjoyed in the UK. In some countries, clauses that limit or exclude liability are only enforceable if written in bold text or in capital letters. A simple lack of awareness of these country-specific rules could end up with your carefully written terms and conditions being little more than worthless. One size does not fit all when it comes to embracing international trade, so when was the last time you reviewed the terms on which you do business with your global trading partners?
18 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
Digitally Made.
W
ith the recent release of The Manufacturer’s Annual Manufacturing Report (bit.ly/AMR2015), some of the statistics make quite interesting reading especially when it comes to projected investments in ICT technologies. Technologies related to Hayden business intelligence, Richards analytics and even product lifecycle management (PLM) highlights the seemed to be on the radar five digital of less than 10% surveyed for projects in the next 12 trends CEOs months. Quite worrisome need to know I think, and here is the reason why. right now Currently underway is a new wave of computing that fast-tracks opportunities for manufacturers to push and control customer engagement, innovation and business productivity. This new trend is known as the SMAC Stack and it comprises a combination of social, mobile, analytics and cloud technologies. In order to keep up with these emerging trends, CEOs will have to demonstrate a new form of leadership that quickly reduces the digital divide while driving the digital transformation within their factories. Here are five digital trends these CEO’s will need to embrace: 1. Internet of things 2. The evolution of digital devices 3. Real-time personalisation 4. Big data 5. Social intelligence. Number five is a must have. Many innovative companies are currently using tools like Socialsift (www.socialsift.co.uk) to take social data to the next level, “listening” to the billions of conversations on social media, with the goal of extracting actionable insights in order to make better decisions around their brand and products. Professor Javier Zamora and Evgeny Káganer from IESE‘s Information Systems Department recently said in a Forbes article that “digital leaders need to understand the shifts (behavioural, economic, social) that new tech drivers are creating: like mobile, social networks, cloud, big data.” These leaders must then, Professor Káganer explained “translate these key fundamental shifts into business impacts at the industry, organisation and individual level.”
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Letters to the editor
Production lines
Letters to the Editor Chris Jones Executive VP Marketing & Services, Descartes Systems Group
You wouldn’t think a saying from a fictional pirate would have much relevance in the real world, but sadly the quote attributed to Captain Jack Sparrow: “The problem is not the problem. The problem is your attitude about the problem,” sums up one of the biggest challenges facing today’s supply chain: an inflexible mindset. Too often the industry is constrained by its approach to supply chain problems, not the problems themselves. One of the greatest challenges in supply chain management is to get beyond the focus on cost reduction as opposed to revenue generation. As a supply chain executive, it can be difficult to introduce this discussion with the rest of the executive team. Sometimes a different approach is required to get the point across. Retailers by-and-large have to justify the value-added services they offer by the number of home deliveries on any given route. The general belief being that fleet productivity would be dramatically impacted with no way to relate that to the incremental revenue from the value added services on offer. The problem here is that traditional metrics and attitudes are being applied to a new business opportunity. A simple change in metric ‘attitude’ from ‘cost per mile’ to ‘cost per minute’ for delivery resources reveals the gains that can be made. This new calculation allows for a clear comparison between incremental revenue for the value added services and the time-based cost it takes to deliver the services. Having a traditional supply chain attitude could be holding your business back from reaching its full potential. Supply chain strategies, tactics, and technology are constantly evolving and if there were ever a place to change attitude, it is here.
20 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
Sir David Roberts McMurty CBE Chairman and CEO, Renishaw plc
The skills gap in UK engineering has taught us a valuable lesson: there is no such thing as quick fix. British engineering will only progress through sustained collaborative efforts, consistency and a cultural shift. As the Perkins’ Review highlighted last year, parents, teachers, employers and the Government should collaborate to encourage young people from any background to regard engineering as a fulfilling and exciting career. However, collaboration is nothing without consistency. Genuine passion is cultivated in our early years. A child who regards science The number of our class as a chore is apprentice and graduate unlikely to become an accomplished applications has trebled in engineer. Children the last few years, as a direct should be encouraged and result of our collaborations with motivated to see how schools, universities, STEM-based science can help organisations, career advisors them understand and change the world and government agencies and the message should be reinforced constantly during school years. Furthermore, what our industry needs is a cultural shift to help shatter outmoded stereotypes. Engineering does not equal manual labour; it is a world of thrilling and rewarding career opportunities. Engineering is not only for men; it welcomes people from both genders, all ethnic backgrounds and any walk of life. Engineering is anything but dull; it’s one of the most imaginative and creative professions in the world. As a leading UK engineering company, in theory Renishaw should have been among the first whose recruitment suffered as a result of the skills gap. However the number of our apprentice and graduate applications has trebled in the last few years, as a direct result of our collaborations with schools, universities, STEM-based organisations, career advisors and government agencies. There is no hasty remedy for the UK’s shortage of engineers. The only solution is a continuous, combined effort to make the profession more appealing to young people, their parents and teachers. It won’t take one year, five or 10. It is a perennial commitment that we make to future generations.
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’s editorial team is out and about at a wide variety of industry conferences, debates and factory tours month in, month out. Let’s get a snapshot of the most interesting trips in February.
A fan of UK innovation
Jonny Williamson blows into Swindon to check out Torin-Sifan’s new 25,000 sq ft EC Manufacturing & Technology Centre.
One of Torin-Sifan’s production line workers
Torin-Sifan’s new EC Manufacturing and Technology Centre
22 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
F
ormally opened by Justin Tomlinson MP and Mayor of Swindon Councillor Teresa Page in February, the centre is the latest investment by the leading producer of energy efficient fan technology, Torin-Safin, which celebrated 50 years of British manufacturing and innovation last year. Located in Pagoda Park, Swindon, the new facility hopes to become the company’s centre of excellence in the design, development and manufacture of its highly efficient EC (electrical commutated) motor and fan technology. Housing custom-designed production lines, a sales and marketing suite, and staff welfare area, Torin-Sifan’s entire EC product range is now being manufactured at the new site; with the structure having undergone an extensive refit to meet the company’s exacting requirements. A further three production lines are being designed and implemented to support several new EC product launches scheduled for the first half of 2015, targeted towards applications across the HVAC (heating, ventilation, and air conditioning) sector. According to the company’s MD, Neil Sproston, legislation aimed at reducing the energy consumption of building products has driven significant migration to EC technology over the past decade, and demand is continuing to build. Torin-Sifan’s commercial director, Paul Kilburn added that the advanced centre should provide the manufacturing capacity needed to satisfy both current and future requirements, as well as an ideal environment for continued product and technology innovation. The new facility has allowed the company to increase EC production by more than 20%, while continuing with the manufacture of its traditional product ranges at its existing Greenbridge headquarters – also located in Swindon. Sproston continued: “This expansion of our manufacturing capabilities means we are even better able to offer our global customer base cutting-edge air movement technology, and improved facilities will benefit both customers and staff. “To be able to manufacture successfully in the UK is testament to the quality of our products and to the skills base here.”
OUT AND ABOUT
Living proof Callum Bentley took off to Coventry to see what all the hype was about regarding one of the UK’s newest facilities looking to overcome the dreaded valley of death.
A
£22m manufacturing initiative in the UK, The Proving Factory takes low-carbon vehicle technologies developed by small high-tech British companies and university research departments, industrialises them then produces them at ‘proving volumes’ of 10,000-20,000 units a year. Once a product is adopted by a car maker, The Proving Factory puts it into production, and ultimately supports the process of handing it on to higher production volumes in the main
stream automotive supply chain. The EU has made a commitment to improving air quality and reducing emissions, and with 12% of total EU emissions coming from cars alone, vehicle manufacturers are under huge pressure to create cleaner products. New solutions are needed to support this goal, creating an attractive market for the innovative technologies being developed in the UK and made by The Proving Factory. The Proving Factory initiative was launched by Business Secretary Dr Vince Cable two years ago, in February 2013, after receiving funding from the Advanced Manufacturing Supply Chain Initiative (AMSCI). The Proving Factory business is a strategic alliance between Productiv and Tata Steel. Since the launch the partners have been busy building the team and facilities needed to develop and manufacture the first technologies. The Proving Factory now has a 6,000m2 site in Coventry where the engineering and systems assembly operations are located, and a 1,000m2 component manufacturing facility in South Yorkshire, housing state-of-theart machine tools. 50 people have been
Guests browse the exhbition
recruited so far, with this number set to increase to 250 over the next four years. The Proving Factory was established to manage the gap in the UK supply chain, between small technology developers designing innovative lowcarbon automotive technologies and vehicle manufacturers’ need for a route to volume production, to integrate new technologies into their vehicles. Nine technologies have now gone through the development stages, with two due to start production this quarter. The range of products being handled by The Proving Factory reflects the fact that there isn’t just one solution to the challenge of developing new low-carbon powertrain technologies, rather a whole suite of options are needed to address different duty cycles and applications.
Millbrook, the UK’s hidden gem Victoria Fitzgerald goes for a spin at Millbrook Technology Park.
D
ubbed the “UK’s hidden gem”, Millbrook Technology Centre is buried deep in the foliage of Bedfordshire’s countryside, but bosses have big plans for the institution to emerge from the shadows and promote itself as an exemplar for design, test and engineering for the automotive, public transport, energy and defence markets. In February, following the award of a £1.95m funding grant from SEMLEP in April last year, the facility threw open its doors to stakeholders, selected members of industry and the public. Boasting 40 miles of track and used as the setting for a James Bond movie and TV programmes like Silent Witness, Millbrook did not disappoint. The event provided an opportunity for attendees to view future plans and listen to presentations from Millbrook chief executive, Alex Burns; Nadine Dorries MP for Mid Bedfordshire, Cllr James Jamieson, and Daniel Charles Mouawad, chief
executive of SEMLEP, South East Midlands Local Enterprise Partnership. The expansion will begin with planning consent for 24,900m2 of office, research and development space and by bringing new companies to the site. Bosses aim to create more than 1,000 highly skilled jobs, worth a forecasted £118m to the Central Bedfordshire economy. As part of the investment Millbrook has also announced it is to build a four-wheel-drive chassis dynamometer test cell, which will ensure assessments are carried out in a climate controlled environment, with appropriate
instrumentation for gathering highly accurate emissions and fuel measurements. Daniel Charles Mouawad told he hoped the development would create an “advanced manufacturing cluster” in the South East Midlands. Millbrook chief executive, Alex Burns said, “Millbrook is leading the way in automotive innovation and this new facility will help to cement our position as the UK’s number one facility for benchmarking and developing the most advanced powertrains for future vehicles. “We are thrilled to be starting the New Year with an initiative that looks set to change the future of the automotive industry.” When asked whether he saw any potential barriers to the initiative, Burns told , “Getting the word out will be the biggest challenge, letting people know exactly what Millbrook has to offer. “But with events like this, with the help of the press and UKTI Automotive Investment Organisation we hope to spread the word.”
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 23
Tracking your top reads on www.themanufacturer.com last month
Best of Online
http://www.themanufacturer.com
What to watch on themanufacturer.com Innovate UK invests millions each year in supporting businesses to develop new digital products and services. We help UK businesses in every sector navigate challenges, innovate, and exploit digital technologies.
U
nderstanding the challenges that face today’s businesses, it helps businesses focus on user needs, grow infrastructures, platforms and ecosystems, and provide the support needed to turn ideas into realities and turn digital technology to their best advantage.
Top Tw eets With N this m ational A
p what yonth, TM tooprenticeship ou we k re say to the TwitteWeek happ ing ab e out thersphere to ning see event.
The world is changing quickly and that’s exciting. Innovate UK’s digital strategy is all about helping to take businesses to the next level. Find out how Innovate UK is lighting a fire in digital innovation. The new name for the Technology Strategy Board, Innovate UK is an executive non-departmental public body, sponsored by the Department for Business, Innovation & Skills. It was produced by director, animator, Illustrator and Student Academy Award gold medal winner Kristina Yee. Watch the video at bit.ly/InnovateUKVid
Popular blog contributions last month included: What can go wrong with programmable logic controllers? Jonathan Wilkins, of industrial automation components suppler European Automation, discusses the top five problems associated with programmable logic controllers (PLCs). http://bit.ly/ProgramPLC
Driving success David Atkinson, Head of SME manufacturing at Lloyds Bank Commercial Banking discusses the UK’s automotive sector’s success and its future challenges. http://bit.ly/Drivingsuccess
Engineering an export success Diamond Engineering’s Richmond Hess offers a first-hand account of how overcoming language barriers can open the door to significant overseas opportunities. http://bit.ly/Exportsuccess
24 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
MANUFACTURING, THE NUMBERS
looks at some of the more interesting numbers in the manufacturing news in the past month.
1.5 miles The length of a traffic jam which would weigh the same amount as the mammoth castings Sheffield Forgemasters has taken on this month. The castings will become some of the largest steel components ever made. bit.ly/ShefForgemasters
The amount promised by Business Secretary Vince Cable to boost the competitiveness of the UK aerospace sector. bit.ly/100mAero
The amount of initial research grants 2015 Queen Elizabeth Prize winner Dr Robert Langer had rejected when starting out his career. He is now the most cited engineer in history, with his inventions touching the lives of more than two billion people. bit.ly/QEPrize
The number of biomass boilers installed across the UK by renewable technologies firm, VG Energy, in 2014. bit.ly/BioBoilers
7,000 The number of pubs across the UK that closed between 2008 and 2013 after a beer duty hike of 24%. 2014 saw the first rise in beer sales in a decade following two significant cuts to the beer duty tax. bit.ly/BeerDuty
The number of supercharger stations electric car manufacturer, Tesla, has now opened across the UK. These span routes from Exeter to Edinburgh, with the company aiming for full UK coverage by the end of 2015. bit.ly/TeslaStations March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 25
The parent trap From April 2015 new legislation will allow parents to share parental leave, Victoria Fitzgerald examines the potential benefits and challenges the changes could pose for manufacturing companies. The history
Traditionally the “double burden” of family life was solely a woman-centric issue, but as a society we are valuing the importance of a father’s role more than ever, to the extent that legislation has shifted to involve men equally in the subject of parental leave. In theory, this is a both giant and revolutionary step forward for both sexes in evolving deeply entrenched gender stereotypes, but in male dominated industries like manufacturing, its dissemination is not so simple. Quite unfairly, the role of the father in family life was overlooked in the political agenda until 2001, when Gordon Brown
included it in that year’s Budget. Then in January 2010, fathers were awarded the right to take six months statutory paternity leave while their partners returned to work. Now, as the May general election looms, the issue of paternity leave is creeping up each of the major parties’ political itineraries. Last year, the Liberal Democrats said it would increase paternity entitlement to six weeks, then in February, Labour announced plans to double statutory paternity leave from two to four weeks, and increase statutory paternity pay by more than £120 a week, to £260. Legally, from April 2015, and this applies to couples whose babies are due from then, parents will be entitled to choose whether they want to share the mother’s maternity leave. The leave can be taken at the same time, so a couple would be able to be at home together for up to half a year following the birth of their child.
HR practitioners ranked the new legislation as a bigger challenge in 2015 than improving attendance and performance, managing change and equal New legislation of shared parental leave pay issues
There are expected to be around 285,000 working couples eligible to
26 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
share parental leave from April 2015. The changes are aimed at kick-starting a cultural change in the workplace, where fathers feel more confident to talk to their employers about taking time off for childcare. Employment Relations Minister Jo Swinson, highlights what a huge step forward the legislation is, explaining, “Introducing shared parental leave is a significant step towards changing workplace culture, making it just as normal for fathers to take on childcare responsibilities as mothers. “From April next year mums and adopters will have real choice about when they return to work, dads will have more time to bond with their children and employers will benefit from lower staff turnover and having a workforce that is more flexible and motivated.” Legislators are confident the changes will allow employers to retain talented staff, provide a flexible approach with a healthy work-life balance, which will ultimately contribute to the growth and success of a business. Acas chair Brendan Barber says, “Shared parental leave will enable working parents to share maternity or adoption leave to allow both parents greater involvement with their child’s first year, whilst employers have the potential to remain productive by agreeing new arrangements that work for their organisations.”
Parental leave
HOT TOPIC
Legally, from April 2015, and this applies to couples whose babies are due from then, parents will be entitled to choose whether they want to share the mother’s maternity leave The challenges within manufacturing
There are many obstacles punctuating the road ahead for manufacturing companies, both in cost and the navigation of the complex system. Tom Neil, from Acas Information & Guidance, explains to , “Manufacturing has traditionally been regarded as a male dominated sector and therefore some employers may have comparatively limited experience of dealing with family friendly rights.” In January, EEF shared its findings saying that 40% of HR professionals in manufacturing companies regarded the new legislation as a key challenge in the next three to six months, in fact, the study showed that HR practitioners ranked the new legislation as a bigger challenge in 2015 than improving attendance and performance, managing change and equal pay issues. EEF is set to support its manufacturing members by running a series of seminars across the UK, ‘Shared parental leave – who’s holding the baby?’ These sessions will translate the numerous regulatory requirements so that HR teams can confidently manage the shared parental leave process from start to finish. In Government’s impact report, published in March 2014, on the introduction of shared parental leave, it estimated the cost to businesses would be roughly £17m, and it also predicted that for the majority of employers it would be cost-neutral because it would increase the number of women returning to work earlier, balancing the deficit. However, the calculation was founded on two inconsistent assumptions. Firstly that every business would only offer statutory shared parental leave and pay, which is £138.18 a week or 90% of the individual’s salary. Secondly, that the participation in the scheme would be comparable to the take-up of Additional Paternity Leave (APL), which was fairly low. According to union TUC, only one
in 172 fathers took up APL in 2011/12, which allows them to take up to 26 weeks to look after a child following the completion of the mother’s maternity leave. TUC also published a study stating that two in five (40%) new fathers won’t qualify for new rights to shared parental leave, mainly because their partner is not in paid work. Mothers who don’t have a job (whether employed or selfemployed) don’t have a right to maternity leave or pay that they can share.
of men oppose sharing parental leave equally for fear of losing money and status
of men surveyed said they would prefer to take the minimum period permitted following the birth of their baby
of men asked said they would take the maximum leave granted
Criticism
Despite the progressiveness of the legislation, there are issues, not to mention some underlying criticism. Think tank, the Fatherhood Institute, published research in November saying that 75% of men participating in the study oppose sharing parental leave equally for fear of losing money, status and for not seeming committed to their careers as those that decide to leave the parental leave to the mother. 42% of men surveyed said they would prefer to take the minimum period permitted following the birth of their baby, with one in four believing parents should divide the time evenly. 12% of men asked said they would take the maximum leave granted.
18-24
year-olds were more likely to agree with shared parental leave
Other research from Glassdoor showed less than one in four men surveyed agreeing that new parents should share parental leave. This opinion rises slightly to 31% among millennials (18-24 year olds) and falls to 21% for the over 45s, revealing a clear-cut generational divide.
The future
Despite optimism for legislative change, Mumsnet CEO Justine Roberts believes that without a deeper cultural shift in attitudes, the effect of the new rules will be minimal. Roberts says, “In a recent survey of Mumsnet users, eight out of ten couples said they would have liked the father to take more paternity leave, and seven out of 10 said that financial considerations stopped them from doing so. “Everyone seems to agree that dads need to be able to spend time with their children, but we don’t yet have the policies that will encourage a real cultural shift.” As far as leveling the playing field, The Fatherhood Institutes Jeremy Davies says, “We’ve got mountains to climb before we get there.” March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 27
sectorfocus Vital spark
The UK’s electronics business is relatively small but it’s a big hitter. It has developed a global reputation for high quality, specialist equipment and solutions, and its leading lights have plans to greatly increase its size by 2020. Ruari McCallion reports.
T
he electronics industry in the UK is not very big, by global standards, but it has a pretty long reach. “We were the first company to take a photo of a comet in deep space,” said Roger Pittock, outreach engineer with e2v, which is based in Chelmsford. He was referring to the Rosetta satellite mission, which succeeded in placing the Philae lander on comet 67p/ Churyumov-Gerasimenko in Autumn 2014. While the whereabouts of Philae may not be currently known for certain, there is no doubt about the importance of the UK to European Space Agency (ESA) projects, including
Mars Express and Rosetta. The satellite itself was designed and ultimately assembled at Airbus Defence & Space (ADS) in Stevenage, Hertfordshire. e2v supplied imaging equipment and collaborated with partners in developing appropriate control systems. “The imager is similar in concept to the camera you have on your mobile phone,” said Pittock, but he points out that my smartphone camera would not survive even a rocket launch, never mind a ten and a half year trip through space, experiencing temperatures that swing from +200C to -150C, as well as radiation, dust, debris and everything else the cosmos can throw at a small assembly of metal, optics and electronics as it flew through the solar system. Ten UK companies were involved in Rosetta. Imaging instruments were made by Chelmsford-headquartered e2v. Stabilisation of the lander during its descent was provided by an ultra-low power momentum wheel developed by Surrey Satellite Technologies Ltd and the
28 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
The Rosetta imaging sensor created by UK tech company, e2v
UK Electronics
SECTOR FOCUS
One thing after another The Internet of Things may be the transformational technology of the decade but it needs to be more accessible. ARM thinks it has the answer.
lithium-ion batteries were developed and produced by ABSL Space Products of Oxfordshire. The tiny chemical analysis instrument in the miniature Ptolemy laboratory was designed and built in the UK by RAL Space, the Open University and the Rutherford Appleton Laboratory. Airbus Defence and Space (ADS) was a major contractor for the spacecraft platform; European Space Tribology Laboratory (ESTL) was involved in the development of mechanical systems and designed and supplied the lubricant for an atomic force microscope. moog developed the helium storage tanks for the Ptolemy instrument and supplied specialist valves. SciSys developed the ground control software systems along with highly specialised systems for flybys, the comet approach and the landing itself; and Telespazio VEGA developed the mission training simulator and co-developed various sub-systems. But all that was in what is the dim and distant past for electronics. The Rosetta Mission was first mooted in the early 1990s, ESA agreed the mission
In November 2014, Zebra Technologies Corporation announced the results of a survey that appeared to demonstrate that the majority of businesses are either thinking about or are actively deploying the Internet of Things (IoT) as part of their business strategy. When Zebra undertook a similar study in 2012 it found that 15% of firms had an IoT solution in place; that number had risen to 25% in 2014. In the UK, no less than 60% of surveyed businesses have already deployed IoT solutions and a further 30% said that they were intending to do so in the following 12 months. Among the key findings were that WiFi, real-time tracking, and security sensors are important elements of IoT solutions, and that ‘improved customer experience’ is the top benefit that IoT can help to deliver. However, until there is a ‘killer app’ then it may be the case that the Internet of Things will not be taken to heart. Where will the killer app come from? It may come from the research labs of major companies but true adoption, across the board and reaching into the smallest operations, depends on accessibility – and access has, hitherto, been dependent on cost.
that will enable truly global adoption. The key feature for any company or even individual developer is that it lowers the cost barriers. The ARM mbed IoT Starter Kit (bit.ly/ARMIoT) will be available for less than $200. It also – crucially – cuts the cost of storage and access to an ‘as used’ model, rather than requiring large, upfront investment. The IoT Starter Kit consists of an ARM mbed-enabled development board from Freescale, powered by an ARM Cortex®-M4 based processor, together with a sensor IO application shield. It is designed to enable the user to channel data from Internet-connected devices directly into IBM’s Bluemix cloud platform. ARM and IBM say that the combination of a secure sensor environment with cloudbased analytics, mobile and application resources will allow fast prototyping of new smart products, as well as other value-added services. IBM observed that, in order to make the IoT work for businesses, it needs to be simple to connect physical devices into the cloud and to build applications and insights around them. This joint project is designed to facilitate that effort. Everything a developer needs comes inside a 6’ x 4” box: processor, development board, USB connection and access to storage and development space on the Bluemix cloud. The two companies are certainly confident that the Starter Kit will be rapidly and widely adopted; they expect the first products developed using the kit to enter the market in 2015.
The ARM/IBM Internet of Things starter kit will be priced at less than $200
Technology company ARM, which designs processors and related technologies and whose IP is found in most of the world’s mobile phones, has launched something that might be the door-opener
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 29
UK Electronics
SECTOR FOCUS
My view is that we are still searching for the ‘killer app’, the thing that makes you wonder how you ever did without it Derek Wallis, Cambridge Consultants
The smart hair clip is small enough to blend in with current fashion
The heat of technology Cambridge Consultants’ Solitair is a wearable healthtech device that is designed to help users avoid damaging exposure to sunlight. Solitair is a smartphone app that is linked to a small sensing device that could be clipped to a bag or worn as a brooch or hairclip. It monitors users’ sun exposure and combines the information with skin type and schedule for the day to give real-time recommendations about when it’s time to cover up or move indoors. The user takes an image of their skin with their smartphone, to give a pre-suntan level of pigment. The Solitair app analyses the image and combines the information with the user’s location, the weather forecast and their schedule for the day to give individual guidance on optimum times in the sun with and without sunscreen with different sun protection factors (SPFs). The sensing device monitors actual sun exposure and gives real-time updates via the smartphone throughout the day, with alerts when the user is nearing the recommended maximum time.
in 1993 and the design was essentially complete by 1997. Construction began in January 1999 and, three-and-a-half years later, Rosetta was ready for launch – which took place another two years or so later, in 1995. Today’s electronics industry in the UK presents a very much different landscape. Twenty years ago semiconductor manufacturer Newport Wafer-Fab Ltd, in South Wales, was looked to as the future of advanced electronics in the UK; three years later it was in administration, its business model ruined by a downturn in the market and by the rise of lowercost manufacturers in the Far East.
A game of two halves
“Chip manufacturing is now mostly in Taiwan but there is still a lot of electronic manufacturing in the UK,” said Derek Wallis, programme director with Cambridge Consultants. The industry is now definitely split
The Solitair technology and hairclip which monitors sun exposure
The electronics business in the UK is worth approximately (5.4% of UK GDP)
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in two: low-volume, local suppliers occupying particular niches, and very high end and advanced technical businesses with a global reach. While 14 of the world’s top 20 semiconductor companies have established design and/or manufacturing operations in the UK, the needs of the higher end have led to less outsourcing, so it is inevitable that the supply chain will look a bit emaciated. “Avionics in the UK, for example, tends to be conducted in-house because of the need for traceability and process control,” said Wallis. Security is paramount. He cited the example of a company based in one of the country’s regions that is working in the medical sector. The need for security is such that it cannot even be identified and something like the ‘Grey Market’ that is found in other industries is a definite anathema. The UK has some very good manufacturers and they don’t even have to be super-advanced in technology. “Their niche can be about service – fast response and the ability to turn orders round quickly,” he said. Or it could be about accumulated expertise and technology. Eaton Ltd, based in Fareham, Hants, makes pumps, pump systems and other equipment for a range of aircraft, from the Airbus A380 and Boeing Dreamliner to the Eurofighter Typhoon. It was recently announced that Eaton’s digital fuel gauging technology has been selected for Gulfstream’s G500 and G600 business jets. These represent highly advanced technology
UK Electronics
SECTOR FOCUS
Without huge facilities you will not get volume business. Wafer manufacturing is not commoditised as such but scale is challenging
and the UK’s strength in the electronics sector is that it has expertise and a pool of knowledge that is deep and extends across different sectors.
A question of scale
“There is still wafer manufacturing in the UK but it is at the high-tech end,” said Wallis. What we do not have is massive scale. “Without huge facilities you will not get volume business. Wafer manufacturing is not commoditised as such but scale is challenging.” What we do have is design capability, which suits both ends of the operation. “The amount of capital required for manufacturing is huge; design’s needs are very much smaller.”
There is a lot of talk about the Internet of Things, or Industry 4.0, and the UK’s strength and history in design, from games to aerospace, would seem to make it an ideal place to look for the ideas that will take industry forward, would it not? Maybe, maybe not. “My view is that we are still searching for the ‘killer app’, the thing that makes you wonder how you ever did without it,” he said. “Various schemes are available to, for example, control central heating when you’re out. Or you can start your media player, or activate your webcam from anywhere in the house – but it is a bit ‘so what?’. The idea for the killer app may come from the UK – but it will probably be built somewhere else.”
The number of people employed in the UK Electronics industry
over 32 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
of the sector’s estimated 6000 companies in the sector are SMEs
One of the hurdles to developing a ‘killer’ Internet of Things app is the cost of entry and IBM and ARM may have come up with the route to get over that (see breakout story). As for building things elsewhere, the loss of IP that had become so bad that it was becoming viewed as a cost of doing business is becoming better controlled, Wallis believes. “We are becoming much more savvy and separating things out,” he said. “In consumer durables, for example, the people who make the product cannot provide the service. Take Internet radio; you need a portal provider and they won’t deal with you if you have a reputation for ripping people off.”
Strength in depth
TECHuk, the umbrella organisation for the sector, has set a target of growing 55% by 2020. That will create another 150,000 jobs and boost its value to £120bn. The ESCO (Electronics Systems: Challenges and Opportunities) Report, which was created for the Department of Business, Innovation and Skills, calls for a number of specific measures by government and industry, in order to stimulate growth. The Report compares the UK with South Korea, which has a similar size, GDP and population, but has a much stronger global presence and bigger brands. The UK is home to two leading chip IP firms (ARM and Imagination Technologies) and many of the world’s leading research universities, but there is no UK equivalent of Samsung, for example. ESCO was chaired by Pond Ventures’ Jamie Urquhart. Among the Report’s key recommendations are measures to improve supply chains and strategic procurement, the skills pipeline and the formation of a think tank to identify future growth sectors. It warns that failure to take immediate action in these areas will have implications for the competitiveness of every industrial sector and the UK economy.
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INTERVIEW The science of success
Eagerly observing at the Big Bang Fair in 2013
After three years as the Chief Scientific Advisor at BIS, Professor John Perkins contemplates his achievements with Victoria Fitzgerald.
I
n November 2013, Professor John Perkins’ Review of Engineering Skills shook industry and Government into action and garnered significant media attention, when he drilled home the dire need of increasing engineering skills to keep the UK economy afloat moving forward. At the time of the report Perkins was chief scientific advisor at the Department for Business, Innovation and Skills, but as 2014 drew to a close, after three years in the post, the academic decided to move on to pastures new. “Well I came to the end of my contract,” he explains. “I was appointed for three years and whilst the job is great fun, I live in Manchester and it meant three days a week in London on
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an on-going basis and that was a bit of a strain. “When the contract came to an end, it seemed like a good time to step down and pursue some other opportunities.”
The BIS years
Since the beginning of his BIS stint in 2012, Perkins witnessed the upward trajectory of the manufacturing sector, as well as Government’s realisation of its importance in strengthening the UK economy. He elaborates, saying; “the biggest thing that I saw was the development and implementation of industrial strategy. “That’s looking as though it is making a big difference to what happens in the UK, especially in those sectors that
The biggest thing that I saw was the development and implementation of industrial strategy
have been identified as key sectors like aerospace and automotive. “I think in terms of the Government’s commitment to really trying to rebalance the economy, industrial strategy is what that’s all about. “It’s early days yet, rebalancing the economy is a long-term project so it will take a while before we see the concrete outcomes of that approach. But I am optimistic; I think it’s going well.” We both agree that Government efforts to prioritise manufacturing and industry should be celebrated. But it seems appropriate to ask Perkins what he expect from BIS in the future, particularly in the shadow of a looming general election.
Professor John Perkins
“I expect continuation of the implementation of the industrial strategy, probably at a greater pace of implementation will be something that the department will be keen to do,” he answers. “We are coming up to an election, the more I read the papers the less sure I am about what the outcome is going to be. “The major parties seem to be pretty much aligned to the idea of industrial strategy. Different administrations will have different nuances, but industrial strategy seems to be common ground.”
The fall-out from Review of Engineering Skills
In recalling his most treasured moments from the post, Perkins talks of the interest that was sparked by his Review of Engineering Skills and the action it inspired from Government and industry. In the review, Perkins addressed both long-term and short-term requirements to increase the flow of talented young people into the UK workforce to meet the demands of our future economy. In the long-term, Perkins highlighted a lack of visible role models in manufacturing; the necessity to ensure “girls have the opportunities to study STEM subjects and don’t rule themselves out too early”; the need for higher quality, high status vocational pathways; and the need to ensure that higher education continues to deliver. In the short-term, the academic alluded to the fact that engineering skills take time to acquire but suggested that industry and Government could capitalise on individuals with similar core skills that are transferable throughout the sectors. Perkins was confident that his calls to action had been recognised and acted upon, particularly those recommendations aimed at Government. “The ones that were for Government alone have been acted on. There is now extra funding for university to build capability in STEM teaching with a focus on engineering, the money has been released for HEFCE,” he says. In January, HEFCE announced the confirmation of BIS’ funding allocation for 2015-16 of just over £4bn, a £146m increase in teaching capital and a £17m rise in research capital, which will fund the development of an engineering conversion pilot broadly
INTERVIEW
One of the things government would like to encourage is companies broadening their horizons in terms of where their customers actually are, looking outside the eurozone to the brick economies emerging markets
defined, and a review of accreditation of computer science. Perkins continues, “Looking at the statistics, engineering has been the discipline that has benefited most for that scheme. 70% of the money has gone to a dedicated engineering facility or a STEM facility with a significant engineering presence. “On the recurrent side, there will be extra money for high-cost subjects. For a range of disciplines but not all of them are included in that, so that’s universities.” However, this isn’t the only part that Perkins is pleased about. “I have been really encouraged by the response of the engineering community to those recommendations encouraging companies to get into schools to help with inspiration, to work with universities and work with FE colleges. “The work that’s been done by the four Task and Finish groups, set up soon after the report was published, I think is really encouraging in terms of moving us forward on those issues.”
Addressing the skills gap long-term
Although actions to the recommendations are not without challenges, Perkins explains that many good materials have been produced, but the issue lies in disseminating them “to make a difference in more companies getting involved in this area”. He continues; “As we know, there are some exemplars of excellent practice putting a great amount of effort in, but there aren’t enough of those. “We need to encourage more companies to get involved if we are going to reach out to enough schools to make a difference.” But it’s not only this that poses a problem, for the vast majority of companies every hour of their engineers’ time is precious, so it is not surprising if bosses are reluctant to get involved. This is something however, that Perkins says the Task and Finish groups have realised, so their focus
Professor Perkins at The Manufacturer Top 100 with Rob Gilbert (centre) and Dick Elsy (right)
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 35
Professor John Perkins
BIOGRAPHY Professor John Perkins 1973-7:
University of Cambridge
1977:
He gained his PhD from Imperial College
1985-88: ICI Australia Professor of Process Systems Engineering, University of Sydney 2000-01: President of the Institution of Chemical Engineers 2001-04: Principal, Faculty of Engineering, Imperial College London 2004-09: Vice President and Dean of the Faculty of Engineering and Physical Sciences, The University of Manchester 2007-10: Vice President of the Royal Academy of Engineering 2009-10: Prior to this he was Provost at the MASDAR Institute of Science and Technology, Abu Dhabi 2012-15:
Chief Scientific Adviser at the Department for Business Innovation and Skills
Professor Perkins is a co-opted member of the Council of the Institute of Mathematics and its Applications, and a Chartered Engineer, Scientist and Mathematician. Professor Perkins is currently an Honorary Professor at Manchester University, and Visiting Professor at Imperial College London. He has worked in industry for ICI and Shell, as well as acting as a consultant for a number of international companies. With colleagues, he was involved in the start-up of two companies (PSE Ltd, ParOS) spun out of Imperial College London. In 2006 he was awarded a CBE for services to science and engineering.
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over the past12 months has been to create a comprehensive business case to communicate to firms how beneficial the investment of their employees’ time is both in the long and short-term.
Other challenges
Of course skills is a massive component of rebalancing the economy but it isn’t the only one, he says. “I think the leadership councils are also looking at technology and access to markets, so there’s a lot of really good work going on within those leadership councils looking at the whole spectrum of issues that need to be tackled. “We are in a challenging environment at the moment, with the eurozone being pretty much in recession and the eurozone being our biggest customers. It’s quite difficult to get things off the ground. “One of the things government would like to encourage is companies broadening their horizons in terms of where their customers actually are, looking outside the eurozone to the brick economies emerging markets, where business might be done and organisations like UKTI are doing their very best to promote opportunities in those news economies.”
INTERVIEW
find things that kept me entertained and I have always had fun.” And to whom does Perkins credit with his passion for his vocation? “I had a very good chemistry teacher,” he says. “I went to 10 schools as a boy because my father was in the aviation industry and he kept moving around to new jobs, but the last grammar school I was at was the Royal Grammar school in Guildford. “I was in the sixth form there and had a really outstanding chemistry teacher who inspired me to take a very strong interest in chemistry.” Despite his zeal for chemical engineering, he realised that he didn’t want to spend his life in a laboratory, and after studying at Imperial College under the tutoring of Professor Roger Sargent, Perkins was inspired to embark on an academic career. “I have always been interested in the relationship between university engineering departments and industry. So very early in my academic career I took a leave of absence to go and work for a company for a year and at various other points. “I have always split my time between industry and university and I think that’s something that is incredibly important for engineering professors.”
The future is bright
It’s early days yet, rebalancing the economy is a long-term project so it will take a while before we see the concrete outcomes of that approach. But I am optimistic I think it’s going well
Looking back
Perkins’ greatest trait is his tenacious optimism. Looking back at his varied career he tells me that he coined the phrase “your job has to be fun and if it’s not fun, you need to find something else to do”, and it’s clear that he has enormous enthusiasm for his profession. “I can look back to times when I was running a large research institute and that was great fun, I always managed to
Now as the BIS door closes behind him, he begins to embark on other endeavours and it seems Perkins has his finger in many pies. He elaborates, “I am a part-time (40%) professor of chemical engineering at the University of Manchester, where I am engaged in teaching and research. “I consult for a growing number of private and public sector organisations. I am involved with a number of professional bodies: IET, where I chair its education policy panel, IMechE where I chair its academic panel, IChemE where I sit on its research committee, and IMA, where I’ve just joined its council.”
FURTHER INFO: To hear the latest from Professor Perkins follow him on Twitter @JohnPerkins50
6Osecond Robert Morton, Vice president- Europe, National Instruments
interview
Robert Morton Vice presidentEurope, National Instruments productivity, innovation and discovery. We see our customers driving innovation across test, measurement, embedded control and monitoring applications, using NI measurement and control tools to design embedded systems for the industrial IoT, as well as lower the cost of test for consumer IoT products.
NI’s profits increased significantly in 2014. To what do you attribute to this success?
Innovation is at the core of NI’s business. How well do you think the UK electronics industry is responding to rapid changes in technology development?
It’s easy to assume manufacturing is all leaving UK shores and moving to lower cost economies, but don’t forget it’s still the third largest sector of the UK economy. Established UK focus and leadership in research, product design and development – across robotics, aerospace, medical, wireless communications, and sustainable, low carbon and green energy technologies – help keep our electronics industry at the forefront of innovation. Rapid changes in technology development, such as 3D printing, low cost microcontrollers and wireless capability, are helping drive this beyond the established academic and industrial research and design domain, fuelling a “maker movement”. Allied to this easier access to technology, tools and networks, new crowdfunding models are also helping democratise entrepreneurship.
What are the main areas of NI’s business where you are seeing the majority of innovation coming from?
The ubiquitous connectivity and embedded intelligence of both the consumer and industrial Internet of Things (IoT) is driving tremendous innovation. NI equips engineers and scientists with systems to accelerate
NI is a company built and successfully managed for long-term, sustainable growth and profitability. Over time, we have maintained focus on developing a company built to last, with disciplined execution and continued investment in our differentiated platform to deliver on our strategy of reducing the costs of our customers’ systems, while growing our business in the markets we serve.
What are your predictions for the future of mobile communications in the next decade?
IoT and the proliferation of smart, connected devices are continuing to fuel demand for bandwidth. Beyond the need for greater bandwidth, new design constraints including security, coexistence and power consumption are emerging. To address these demands, 5G researchers are exploring and prototyping new wireless communications technologies and techniques – from massive MIMO to millimetre wave. These underlying technologies will help provide the infrastructure to service bandwidth demands for changing patterns in media consumption, as well as always-on embedded computation, communication and connectivity everywhere.
What project that NI is currently working on do you think will have the greatest impact on today’s society?
Certainly, NI’s LabVIEW Communications System Design Suite, which offers a design environment closely integrated with NI software defined radio (SDR) hardware for rapidly prototyping communications systems, is helping wireless researchers tear down the walls between algorithm design, system mapping and implementation. But it’s our customers - and what they do with NI tools and systems - that will have the greatest impact on today’s society. It’s engineers and scientists who will ultimately have to address and solve the grand challenges facing society, from restoring and improving urban infrastructure to providing safe, sustainable energy and clean drinking water for all. That’s a key reason we maintain such an active STEM-focused academic programme, aiming to inspire the next generation of engineers and scientists, as well as providing tools for their hands-on learning which scale all the way from the classroom to research and industry.
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 37
CIWM
Manufacturing Leadership
Circular economics: putting waste back to work CIWM dissects some helpful tools to help manage the complicated regulatory system around waste management.
E
xtracting value from waste materials by turning them back into safe, high quality products is an important consideration for businesses in the move towards greater resource efficiency and a more circular economy. It can save on disposal costs, offer the potential for additional income or reduced raw material costs if recycled back into the business, and improve a company’s environmental credentials. However, the term ‘waste’ positions a material within a framework of environmental legislation with regards to its handling, recycling, treatment and/ or disposal. This legislation is essential
We all have a responsibility to tackle waste and I congratulate the Environment Agency and their partners on the new ‘Is It Waste’ service which can help businesses save money and create new products from existing materials to generate growth and new jobs Dan Rogerson MP Resource Management Minister
– it is designed to ensure that materials capable of causing harm to the environment and people are managed safely. For regulators across the EU, therefore, the challenge lies in achieving the right balance between removing the regulatory burden for low risk waste-derived materials and protecting the environment. Sitting at the heart of this tension is End of Waste (EoW), a complex area of EU legislation that is enshrined in the EU Waste Framework Directive 2008. Aimed at supporting resource efficiency, the EoW framework sets out the overarching requirements that have to be met for waste-derived materials to be considered as a ‘product’ rather than a waste. However, aside from developing individual EU-wide regulations for specific waste streams – iron, steel and aluminium scrap, glass cullet, and copper scrap – the Partners
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Commission has left Member States to implement EoW requirements unilaterally. In the UK, this is driven by domestic case law and regulatory approach. In England, the Environment Agency has taken a two-pronged approach: Quality Protocols (QPs) that set out EoW criteria for specific wastes, and opinions on company-specific EoW applications by the Agency’s dedicated panel. These approaches are delivering tangible benefits. By 2014 the Environment Agency had launched 11 QPs, which by 2020 could help businesses save £139m/ year through reduced waste management costs and generate £355m/year through the sale of ‘new’ resource that would otherwise have been disposed of. In total, between 2014/15 and 2020/21, these changes are projected to be worth £3.58bn to businesses.
Free business support tools from EQual
However, because of potential economic and environmental benefits that can be realised, there is demand across Europe for better definitions and guidance. Recognising this, the Environment Agency and six partner organisations secured around €3m of EU Life+ funding to develop two free business support web-tools through the EQual (Ensuring Quality of waste-derived products to achieve resource efficiency) programme. The IsItWaste web-tool empowers businesses to assess and make informed decisions about whether a waste-derived material is a by-product, achieves End of Waste criteria or remains a waste. The tool can be used as self-assessment alone, and the assessment can also be submitted online to the Environment Agency (for sites in England) for their opinion. It provides a step-by-step approach which guides users through key decision stages including risk assessment and end markets. The QP Checker web-tool enables businesses to self-assess their compliance with the criteria set out in some of the Quality Protocols. Developed initially for compost and recycled aggregates, the tool is now being extended to cover anaerobic digestate and pulverised fuel ash. FURTHER INFO: More information and links to the web-tools can be found at www.gov.uk/ea/equal
Case study
Manufacturing Leadership
Mercury recycling hots up South Wales-based Dragon Recycling Solutions (DRS) specialises in providing complete and tailored recycling solutions and is licensed to handle both non-hazardous and hazardous materials.
I
n 2007, DRS’s ability to handle hazardous materials led to an approach from National Grid. The international energy company was exploring options to improve refurbishment and recycling of redundant gas meters. These meters and associated connections contain a range of materials including plastics, metals and, in some cases, mercury, contained in a small tilt switch. To ensure compliance with the legislative requirements related to hazardous waste, National Grid needed to secure an efficient and auditable process to separate the hazardous and non-
In making the application to the Environment Agency’s End of Waste panel, we had to carry out a thorough comparison of the environment impact of the recovered mercury compared to the extractive and processing impact of virgin mercury
hazardous elements of the meters to ensure the safe recovery and processing of the raw materials within. Since the initial approach, National Grid and DRS have worked together to develop a comprehensive recycling solution, and in May 2010 National Grid opened a purpose-built meter assessment and recycling centre (MARC) where its end-of-life meters are assessed and designated for either refurbishment or recycling. Those meters that contain the mercury tilt switch are passed through a deconstruction process that separates the mercurycontaining components. These components are then sent to DRS’ facility where they are fully disassembled and segregated by material type. A proprietary heat treatment process then recovers the mercury, achieving a purity of over 99.99%. This purity was particularly important when DRS chose to seek an End of Waste view for the recovered mercury, a move supported by National Grid. Putting recovered material on a par with ‘virgin’ mercury in terms of quality and changing its status from a waste to a product was important from both a commercial and environmental perspective. While the total mercury
recovered from the process is only a few tonnes per year, recycling it back into productive use gave National Grid full traceability and the assurance that this hazardous material is treated appropriately and responsibly. The ability to separate out the mercury from the rest of the meter also contributes to the overall recycling performance at the MARC and the revenue generated. In 2013/14, the centre achieved 98% diversion from landfill, and the annual revenue received via the Metal Recycling programme was a welcome contribution to the running costs of the MARC. “In making the application to the Environment Agency’s End of Waste panel, we had to carry out a thorough comparison of the environment impact of the recovered mercury compared to the extractive and processing impact of virgin mercury,” explains DRS director Mick Young. “We also had to demonstrate a credible, safe and sustainable market for the material and the safety of the recovery process, which is a permitted operation. Since the recent EU ban on mercury in new products further work is required to provide a solution to comply with the changes. “We are now looking to apply for End of Waste view for the other materials that make up the meter waste streams, including the plastics and ferrous and non-ferrous metals. We will certainly be looking at the IsItWaste online tool carefully to see how it can help us to streamline and improve our applications to the panel in the future.” March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 39
Learning to lean
LMJ editor Andrew Putwain presents the best of the latest issue of the Lean Management Journal. This month the magazine explores the idea of promoting lean outside the bubble that has been constructed of manufacturers, academics and consultants.
H
ow can we expect the wider community to embrace lean’s common sense virtues when it remains shrouded in buzzwords and offputting terms? Recent news items focus
on lean’s implementation into public health systems around the world and its continuous dragging over the coals by those who don’t understand it and only see it as a way to cover up job losses with Japanese terminology. We need to break lean out, raise its profile and get people to see why and how it can be helpful to all companies.
Using 5S and visual management techniques to improve productivity Christopher A. Pinna from the Cohen Children’s Medical Centre in New York discusses the idea of bringing lean into a paediatric hospital.
C
ohen Children’s Medical Centre (CCMC) is a 202-bed children’s hospital which opened in 1983 as the New York metropolitan area’s only hospital designed exclusively for children. Today CCMC are the largest provider of paediatric health services in New York State. CCMC serves 1.8 million children in Brooklyn, Queens, Nassau and Suffolk counties in New York. CCMC is part of the North Shore-Long Island Jewish health system. The system of operations in the Ambulatory Surgical Unit and Paediatric Ambulatory Chemotherapy & Transfusion Centre of Cohen Children’s Medical Centre are distinctively different in terms of patient complexity and clinical specialisation, they are plagued by the same array of viruses; poor organisation, lack of standardised operations, and minimal inventory control.
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Such system practice ultimately results in excessive human and physical capital expenditure. Division administration wanted the issues resolved quickly using sound improvement science methodologies. Keeping this in mind they were presented with the concept of lean. It was explained that unlike six sigma which focuses on defect reduction, lean seeks to minimise waste in a system and is rapid in solutions deployment via the kaizen. To facilitate the solutions
development the team followed the Lean+S3® solutions model. The model recommends for solutions to be simple, sustainable, and source driven (front line staff).
www.leanmj.com
People and lean
Fred Ravat, Talent Management Director at aluminium fabricator Constellium, talks about the importance of people in the lean process.
C
onstellium designs and manufactures value-added aluminium products and components for a broad range of applications, primarily in the aerospace, automotive and packaging markets. The lean journey for Constellium began in 2012, one year after its creation as a standalone company. Constellium has some 8,500 employees and 22 sites across the world, including manufacturing sites in North America, Europe and Asia. On the basis of a deep analysis of the company and its processes, we organised our change around three pillars: lean tools, organisational changes in our Autonomous Product Unit manufacturing sites (or APUs) and lean leadership. Our CEO Pierre Vareille and our VP lean Yves Merel were the driving force of this lean transformation at Constellium. Since the beginning of the process we have recognised our people were the key success factor in developing a continuous learning and improving culture. We consider every Constellium employee – independent of their role – accountable for the environment and the health and safety of our employees and everyone else on our sites. But we needed to reshape the mindset of our leaders – many of whom are excellent engineers and technical experts but uncomfortable or unfamiliar with the softer management skills. This meant changing the way our second-level managers and frontline leaders behaved. Because of the nature of our industry, many of these were used to process-orientated and technical work rather than human interaction and supportive management behaviours, but it was crucial they focused on this side of their role as well. At the most straightforward level, this is about reducing waste and inefficiency in workplace interactions. Any conversation between colleagues or a manager and his team is important to the business, regardless of whether these are formal meetings or informal conversations about a project. When these do not go well, they impact the productivity of the business, and ultimately reduce the likelihood of achieving lean objectives; continuous improvement and improved performance. With effective training, sharing of values and practices, people can make the difference.
Lean manufacturing
Tesco: lean retailer lost? Simon Elias of Lean Competency Systems and Barry Evans, who was in Tesco’s supply chain development team implementing lean thinking into their processes, talks about the state of one of the world’s largest retailer.
T
esco has long been feted as a lean retailer and an early exponent of structured continuous improvement outside of manufacturing, so does its recent tribulations indicate it has lost some of its lean sheen and indeed what does its experiences tell us about the nature of sustainable lean thinking in organisations? Of course, Tesco is not the only retailer to be suffering, as, in an apparent polarisation of retailing, those in the middle market are feeling the squeeze – and recent consequences have included Morrison removing its chief executive and Sainsbury shedding 500 head office jobs. While the UK grocery market is forecast to grow 16.3% from 2014 to 2019 (source: Institute of Grocery Distribution) key structural changes have been taking place and Channel Share of each £4 future growth will of market growth be driven by three Superstores and -£0.42 principal areas: hypermarkets convenience, online Small supermarkets £0.03 and discounters. The shift in importance is Other retailers -£0.01 illustrated strikingly in Convenience £1.62 the table below, which Discounters £1.49 shows the channel share of each £4 of Online £1.29 market growth. TOTAL £4.00 Tesco has long been feted as a lean retailer and an early exponent of structured continuous improvement outside of manufacturing, so does its recent tribulations indicate it has lost some of its lean sheen and indeed what does its experiences tell us about the nature of sustainable lean thinking in organisations? Of course, Tesco is not the only retailer to be suffering, as, in an apparent polarisation of retailing, those in the middle market are feeling the squeeze – and recent consequences have included Morrison removing its chief executive and Sainsbury shedding 500 head office jobs. While the UK grocery market is forecast to grow 16.3% from 2014 to 2019 (source: Institute of Grocery Distribution) key structural changes have been taking place and future growth will be driven by three principal areas: convenience, online and discounters. The shift in importance is illustrated strikingly in the table below, which shows the channel share of each £4 of market growth. March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 41
EEF Insights
Manufacturing Leadership
Let’s push things forward It’s a fast moving world for the modern manufacturer according to Ian Isaac, head of Lombard.
T
he manufacturing sector has come a long way since the EEF held its first National Manufacturing Conference. Four years ago we were in the depths of recession but this year the agenda was focused much more on sustaining growth rather than simply finding ways to achieve it. One aspect that hasn’t changed is the significance of maintaining levels of investment to ensure that UK manufacturers keep up with evolving technology and innovation, and a focus this year was looking at the factory of the future and the challenges of competing in the digital age. Lombard was delighted to have once again been the headline sponsor of the 2015 EEF National Manufacturing Conference and to have had an
In order to ‘Make it Britain’ it is important not to think purely in the present but to have a vision of the future and all that this will entail
42 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
opportunity to address how we can play a role in supporting UK manufacturers as they make the changes required to equip for the future and to keep pace with changing technology. In order to ‘Make it Britain’ it is important not to think purely in the present but to have a vision of the future and all that this will entail. We know that change is speeding up and that this creates its own challenges, but we are keen to work with manufacturers in order to find the funding solutions to ensure that your business is at the forefront of the inevitable revolution in the manufacturing process. As a flexible funding solution asset finance is growing in popularity as a viable alternative to the traditional bank loan. Figures just released from the Finance and Leasing Association for 2014 indicate that asset finance new business grew by 13% last year to £25.4bn, the strongest
rate of growth for seven years. This funding represents almost 27% of UK investment in machinery, equipment and purchased software in the UK in 2014. In terms of manufacturers the figures indicate that plant and machinery grew by an impressive 48% in December 2014 compared to the same month in 2013, to £571m, while lending across the year for plant and machinery grew by 21% to £5.4bn. We believe that this growth demonstrates that more of you are recognising the benefits offered by asset finance in particular to your cash flow. Thus asset finance can help to support your investment plans and help you keep up with the pace of innovation in the marketplace. However we also endeavour to make our customers aware of initiatives that will offer further support for your investment planning. We are particularly keen that that our customers don’t miss out on the increased Annual Investment Allowance (AIA). We believe that many manufacturers risk not benefiting from the enhanced £500,000 level which, as things stand, is due to end on 31 December 2015 simply because you may not be aware of the enhancement to the allowance. So we would urge you to speak to your accountant or financial adviser to ensure that you plan your investments smartly and capitalise on the limit while it is still available. The debates that took place at this year’s EEF National Manufacturing Conference will no doubt continue in the lead up to the General Election in May and beyond, but there is no doubt that change is coming to the sector. We’d like to play a part in supporting the technological revolution and in ensuring that the strength of UK Manufacturing is sustained to ensure that Make it Britain resonates long into the future.
FURTHER INFO: To find out more about the Annual Investment Allowance, and to access the Lombard AIA tax calculator to help you calculate what your savings could be, please log on to www.lombard.co.uk/ourexpertise/aia-calculator
How can you deal with the skills shortage? How can you improve quality? How can you grow your business? How can you increase your company’s competitiveness? How can you give your staff greater job satisfaction? For more information contact Henry Anson, Managing Director, The Manufacturer E: h.anson@hennikgroup.com T: +44 (0)20 7401 6033
How can you decrease wastage in production? Automation can provide the answer to all these questions and many more...
bit.ly/AABautomation The Automation Advisory Board is proudly supported by:
Sustainable growth
Manufacturing Leadership
Innovate to sustain David Probert, Head of the Centre for Technology Management at the Institute for Manufacturing, explains how companies can develop their capabilities across the strategy, system and the organisation’s culture.
I
n today’s uncertain and challenging economic environment, it has never been so clear that innovation is key to growth. Even large, solid companies which managed to become sector leaders in the past are not safe anymore, due to the ever-changing technology landscape and disruptive innovations coming onto the market. In order to remain competitive, firms of all sizes need an effective innovation and technology management plan which addresses three interrelated core elements: strategy, system and people. It is important to stress that these elements do not work individually: a strategy cannot be put in place if there isn’t an efficient system to support it, and even with the best strategy and system being adopted, innovation
cannot happen if the company’s culture does not allow to embrace it. The starting point to embracing innovation is defining an effective innovation and technology strategy. This will need to ensure that the company, after agreeing on a ‘vision’ of what it is trying to achieve, focuses its R&D resources on the right technologies which support the firm’s business objectives. Strategy development is a complex task that has to deal with many future uncertainties. However, there are tools and techniques which can help: for instance, technology intelligence gathering ‘scans’ the environment and identifies technological trends and changes, while road mapping techniques align technology management activities with the business strategy.
There are five key processes which are central to a robust technology and innovation management system which is also able to respond to the changing environment and priorities
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Once the strategy is in place, the organisation needs to build a system to put it into practice. There are five key processes which are central to a robust technology and innovation management system which is also able to respond to the changing environment and priorities: Technology Identification, Selection, Acquisition, Exploitation and Protection (ISAEP).
Innovation in action
The first step is to identify and evaluate threats and opportunities before selecting which technologies to focus on, and then deciding how to acquire them. Develop them in-house, buy them from an external source or co-develop through an Open Innovation strategy. Technologies then need to be exploited in an effective way, keeping in mind they could open up new opportunities, which call for changes in the business strategy. A key step is to decide how to protect the IP: sole ownership, shared with partners, Open IP, secrecy – there are many options. The final element to ensure the strategy and systems lead to results is the organisation’s culture and the people who are part of it. The general culture, or ‘how we do things around here’, may create a barrier to success by not allowing innovation to happen. For instance, there may be a hierarchical system where ideas only come from the top, while lower management and more hands-on staff who may have some fresh ideas are not involved in the innovation process. At the same time, the company needs to ensure they have a combination of clear and effective leadership, which can be obtained through training, upskilling and continuous updates, and people with the right expertise, attitude and motivation. No one element is more important than another. The strategy needs to clearly inform the system with what actions need to be performed and how, and both need to take into account the corporate culture and ways to create an enabling environment. This last element can make the difference between a successful company and one which fails, as selecting and adopting the right technologies will only translate into success if there is a culture which enables and embraces innovation.
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In 2013, 46% of the value of all exports were manufactured goods, worth approximately £230.7bn, not to mention that ONS’, The Changing Shape of Manufacturing attests that exporting firms are generally associated with higher growth
In January, Policy Connect launched Exported by Britain, a campaign to promote exports, showcase firms exporting successfully and encourage manufacturers to look beyond their current markets, but the critics think Government is missing a trick. finds out more.
E
xports have become a key component in UK industrial strategy. To address this area, Government has hatched Exported by Britain, to elevate the export debate to the top of the crossparty agenda, widen public importance, promote good examples of exporting, and share resources for companies looking to export. As part of the campaign, the AllParliamentary Manufacturing Group (APMG) and the All-Party Design & Innovation Group (APDIG), both members of Policy Connect, will use the initiative as an expansion on the success of their previous project, Made by Britain, to ensure that exporting is of paramount importance to bolster the UK’s future economic position. As part of the campaign to inspire more UK businesses to start exporting, the APMG and the APDIG will write to every MP to ask them to
46 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
nominate a product exported from their constituency. Rt Hon Stephen Timms MP, who gave a speech at the event, nominated Lyle’s Golden Syrup. All nominated export examples will be shown on an interactive map and the campaign will close with a parliamentary reception before the beginning of recess. According to BIS, manufactured goods account for a large share of total exports compared with their share of national output. In 2013, 46% of the value of all exports were manufactured goods, worth approximately £230.7bn, not to mention that ONS’, The Changing Shape of Manufacturing attests that exporting firms are generally Manufacturing trends Value of manufactured exports £bn
Source: Department for Business, Innovation and Skills
Export, Britain
Export plans and opportunities
EXPORTS
The use of trade federations has five major advantages:
% of manufacturers planning to export in next 12 months
% growth in UK manufactured exports 20102012
Value of manufactured exports £bn
Economic performance % change in GDP 2012
Brazil
29
24
2.4
0.9
US
20
11
33.4
2.2
Access to relevant skills and expertise;
Germany
18
12
25.4
0.9
The right to international exposure;
India
18
16
3.7
4.0
Australia
17
40
4.1
3.6
France
17
2
15.3
0.0
South Africa 17
12
2.1
2.5
Involvement with the entire industry sector nation-wide, and the federation is paid for by its members and not out of the public purse;
Russia
16
62
5.2
3.4
Indonesia
12
52
0.5
6.2
China
11
41
8.2
7.8
associated with higher growth. So there’s never been a better time for firms to look to other markets to begin exporting, but it was clear from opinions at the event that although the initiative is a great idea in principle, Government needs to dig a little deeper to ensure firms begin exporting.
Making use of trade federations
Industrialist, manufacturer and nonexecutive director at the British Coatings Federation, Peter Rieck, said the Government was “missing a trick” by not utilising trade federations in its export initiatives. He underlines that UKTI and the Chambers of Commerce are often the perceived places to go, “but by their very nature are only half the answer”. He told , “UKTI have some excellent tools and Chambers of Commerce may have a broad range of contacts, but often it is not until associations and federations combine these with industry specific knowledge and tailor the UKTI material to suit their sector that initiatives become far more effective.” According to Rieck, trade federations are in a unique position as they not only work on a national basis but within an international network. He elaborates, “Trade federations have a singular insight into the operations, activities and needs of their members and the industrial sector where their members operate. “They are also the natural ‘go-to’ for SMEs that in many cases form up to 80% of the membership. A good
Federation should know more than anyone else about the needs and requirements of its members.” Rieck is also confident in federations’ sector specific knowledge that is key to manufacturers successfully exporting. He tells , “Individual industries have their own key idiosyncrasies and industry sector specific knowledge that is not available through general regional or locally orientated organisations. “Not every manufacturer enjoys the universal coverage that engineering enjoys and yet there are many in smaller less high profile sectors that manufacture mission critical products and materials without which automotive and aerospace companies and others could not function.” Additionally, he explains that an active federation is fundamental to encouraging networking between multinationals, large, medium and small companies in the same industry. “Government should make use of trade federations as hubs to deliver initiatives, collaborate on the design and creation of programmes and direct their members to the most appropriate providers,” he continues. “Federations would then be in an even stronger position to generate meaningful feedback to Government on the effectiveness of its initiatives and improve the focus of new initiatives. “This is even more poignant where exports are concerned; it is for example no use introducing an industrial hightech paint manufacturer to an agent for packaging in Brazil, whereas the
Industry specific knowledge;
Trade federations, in the main, are proactive, show leadership and motivation in a way that is much more likely to help Government meet its ambitious targets for exporting growth by 2020.
The APMG and the APDIG will write to every MP to ask them to nominate a product exported from their constituency right federation such as the British Coatings Federation would use UKTI initiatives linked to pertinent international connections to dramatically increase chances of success.”
Overcoming the challenges
While Government initiatives like this are testament to its enthusiasm for rebalancing the economy, the manufacturing community needs closer support to really ease its transition into exporting. As Rieck says, manufacturers are often overwhelmed by “lack of knowledge, fear of the unknown, a ‘foreign and unfamiliar’ environment, culture, language and risk”. He adds, “Frequently the quagmire of regulation, finance, credit and control would put exporters off. But finding the right partner who can be trusted, has a presence in the market, understands the customers and gels with one’s company is one of the biggest hurdles.” Rieck is adamant that with the support of trade federations, companies of all sizes can have access to useful initiatives, knowledge, help and information. March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 47
Ruby Swindle, Supply Chain Trainee, Crown Paints
Employee of the Month March 2015 Ruby Swindle
Supply Chain Trainee, Crown Paints
EMPLOYEE OF THE MONTH
involvement in project work such as new product launches; or working closely with other departments and external reprographic companies. I work with a fantastic group of people who have helped me settle in and expand my knowledge of the business.
What are the key technical skills you use?
The majority of work involves data input into various computer systems, so accuracy is a key skill within my role. Being able to follow a product through its lifecycle, from introduction to discontinuation, and controlling the data changes behind that, is very important, and it is crucial to the effectiveness of the business. In the near future, I hope to gain further knowledge of the businesses processes by spending time in various departments throughout the company.
What personal characteristics help you in your role?
CV in brief Ruby Swindle Age: 19 Education: A-Level Business Studies, ICT and Fine Art Career to date: Joined Crown Paints Group as Supply Chain Trainee Apprentice in July 2014 Hobbies and interests: Drawing, handicrafts, reading and spending time with friends
What is your role and what are the main responsibilities?
I have worked for Crown Paints since July 2014 as a trainee, and my position at the company is unique as I am the first apprentice to work in the supply chain department. My day-to-day role varies depending on demand, this may involve maintaining the company’s master data in our business system, SAP;
48 www.themanufacturer.com | March 2015 | Issue 2| Volume 18
In supply chain, I interact with many departments on a day-today basis, therefore I think that having the ability to work and communicate effectively, one of my key attributes, is vital in this role. Furthermore, I have good organisational skills, which are invaluable in my job and come in useful when working to tight deadlines. Most importantly, having a positive attitude to the work that I do has helped me in my role so far.
What is your biggest personal success in your role so far?
My biggest success is how I have overseen the changes to health and safety data on our packaging artwork covering an extensive range of Crown Paints products. This has been a critical project for the company over the past 12 months.
What are the most rewarding parts of your job?
Since being at Crown Paints, I have been involved in the launch of a range of new paints, which has broadened my knowledge of how our paint products are designed, developed and brought to market. From creating the master data behind the product and the initial designs of a pack, to finally seeing it on shelf at a local retailer, is very rewarding.
What first attracted you to a career in manufacturing?
I was looking for a career with a reputable company that could offer me the opportunity to progress and gain vocational qualifications, and Crown Paints offered me exactly this. Not only do I have a competitive salary but the help and support available to me is second to none.
What do you believe is the most effective way of getting young people interested in manufacturing?
More young people should be encouraged into manufacturing as it opens the doors to a wide range of career paths like design and development, supply chain, production and marketing, which might not always be apparent to young people. I think that schools and colleges have an important part to play in raising awareness of the possibilities and opportunities available in a manufacturing environment, as sometimes these benefits aren’t always explained to them.
Do you have an exceptional staff member we should feature as Employee of the Month? Let us know at v.fitzgerald@ hennikgroup.com
The National Manufacturing Debate .....now in its 6th year 19 and 20 May 2015 Vincent Building Auditorium, Cranfield University
Theme: UK Reshoring Capability This is the opportunity for manufacturing professionals to discuss and debate current challenges in the industry and to network with colleagues from different sectors. Cranfield will publish a white paper with facts on manufacturing reshoring on the day.
19 May
Visit the National Apprenticeship Competition, take part in the Manufacturing Alumni conference and the tours of key manufacturing facilities.
20 May National Manufacturing Debate 0915 – 1300 Keynote speakers The National Manufacturing Debate is chaired by Lord Alec Broers and the final debate will be presented by Nick Hussey (MD, The Manufacturer). Speakers include: • John Cridland, Director General, CBI • Tomas Jaskelevicius, Business Development Director, Arginta Group • Dick Elsy, CEO of HVM Catapult • David Kynaston, Chairman, AMSCI Investment Board • Paul Sloman, Partner, PricewaterhouseCoopers LLP • Harry Moser, Founder and President, Reshoring Initiative, USA • Dr. Felipe Rubio Castillo, General Director of CIDESI (Centre for Engineering and Industrial Development), Mexico
1300 – 1400 1400 – 1630
Buffet Lunch
The Debate How do we develop the capability for effective reshoring to the UK? The debate will consist of a panel of influential business professionals with knowledge of the reshoring capability for the UK.
Sponsors: Media Partner:
Register now for this free event: www.national-manufacturing-debate.org.uk
GCSE
WORKFORCE & SKILLS
It’s a subject that changes very quickly, new materials, new manufacturing processes, design software, then regular training, subject specific training will allow them to keep up to speed
Time for a change The design and technology GCSE is in the process of being revised by the Department for Education but it’s not all plain sailing. Victoria Fitzgerald finds out more.
D
esign and technology is perhaps the most misunderstood subject on the national curriculum. Covering a wide breadth of quickly developing disciplines and technologies, the subject has been imprisoned in a rut of warn-out assessment practices, passé subject curricula and an out-dated, misinterpreted reputation. Eclipsed by traditionally academic subjects, D&T has been excluded from the English Baccalaureate, a course of study aimed at providing a broad learning base to equip pupils for the future. But what could be more helpful than understanding the engineering, manufacture and technology of everything around us? More recently, despite being one of the most popular GCSEs, design and technology was at risk of falling off the syllabus altogether, until the Design & Technology Association (DATA) rallied the troops and called the Government to action to propel the subject into the 21st Century.
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In January, the Department of Education announced it was to change the date for the first teaching of the new design and technology GCSE examination course from September 2016 to September 2017. The delay is intended to allow further time to develop subject content and assessment objectives. The much-needed overhaul was part of a wider revision of the National Curriculum, however, it has met considerable struggles as a result of entrenched misinterpretations. The first draft of the new programme released by the DoE was described by Richard Green, chief executive for DATA, as “disastrous”. He told , “The problem was, they had produced a programme of study that was very backward, very much a 1950s craft approach, rather than a forward looking one that embraced new technologies.” He continues, “People in decision making positions tend to equate the subject to something near to what
existed when they were at school, such as woodwork, needlework or cookery. “Then you have two of the most misunderstood words in the English language, ‘design’ and ‘technology’, both of which can mean a multitude of the things to a multitude of people.” DATA were quick to respond and as Green puts it, it won that “battle” and pushed for an extended review period, which is making the subject more relevant to business and industry, as well as including more effective use of modern design and manufacturing technologies. Although this is a step forward, changing popular perceptions is a gradual task. Green tells , “The big issue is access to training. It’s a subject that changes very quickly, new materials, new manufacturing processes, design software, then regular training, subject specific training will allow them to keep up to speed.” In response to this, between now and the summer, DATA is developing a selfreview framework to help schools identify their strengths and weaknesses, as well as a range of resources that will help educators engage with new technologies. The final challenge is getting quality teachers to deliver the curriculum and provide students with guidance on what paths the subject can lead to, and this will remain a problem until Government recognises its equal importance compared to other subjects. Although efforts have been made to incentivise teaching the subject, with bursaries of up to £12,000, bursaries to teach maths or physics begin at £25,000, which poses a huge problem. As Green points out, “if you’ve got an engineering degree and you weigh up whether you go into maths, physics or D&T teaching, you’re probably going to go into maths and physics teaching.” Meaning D&T will always play second best to its maths and physics counterparts.
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Snapshots
Coventry’s Manufacturing Technology Centre (MTC) is looking to recruit an additional 40 new advanced engineering apprentices to take part in its advanced manufacturing training programme.
T
Bentley Motors is looking to welcome 300 new professional and technical staff in 2015 as part of a £40m investment into its Crewe headquarters.
xpected to work on future products, the automotive manufacturer is seeking to recruit professionals across a broad range of disciplines, including engineering – electrical; manufacturing; supplier quality; body & trim; whole vehicle and powertrain; sales and marketing – digital; luxury and branded goods; marketing communications and CRM; purchasing; project management; and specialist areas including metrology; laboratory; paint and wood. Its investment also included the creation of a new research and development centre, measuring more than 45,000 sqm, comprising research and
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MTC unlocks its doors to future engineers
he new cohort will join the 36 apprentices who are currently completing their first year training at college and will be shortly progressing into the new £36m Advanced Manufacturing Training Centre (AMTC). Due to start in September, applications for one of the 40 spaces are invited now as places are popular and quickly fill up. The new apprentices will be employed on the centre’s innovative Level 3 Advanced Engineering Apprenticeship programme. The MTC was recently named among the top 100 apprentice employers in the country at the prestigious National Apprenticeship Service’s awards, with its AMTC courses setting the standard for future advanced manufacturing apprenticeships.
Bentley opens the throttle on recruitment drive
E
WORKFORCE & SKILLS
Part of an ambitious £90m expansion plan, the new AMTC is on the same site as the MTC and aims to establish cultural changes in developing the skills and processes needed for future manufacturing in the UK. The AMTC building – scheduled to open in September – will be the UK’s first National College, a flagship facility for advanced apprenticeship programmes. Apprentices will learn the latest technology in areas such as intelligent automation; additive layer manufacture; robotics; metrology; mechatronics; computer aided design (CAD) and computer aided machining (CAM). Apprentices will be able to test and develop their skills in sponsored placements, including the opportunity to undertake international assignments with MTC members and supporters.
development offices, a dedicated styling studio and a technical workshop. The facilities will house 1,300 Bentley engineers and represents the latest step in preparing Bentley’s infrastructure to bring the world’s first ultra-luxury SUV, the Bentayga, to roads in 2016. The announcement follows swiftly on from Bentley Motors being named as one of Britain’s top employers by the Top Employers Institute for the fourth consecutive year. Bentley was particularly praised for its focus on the career and succession planning of its workforce, with a clear focus on personal development. Bentley is looking to further strengthen its position as one of the world’s most sought after luxury car manufacturers in 2015, having delivered 11,020 cars in 2014 – a 9% growth on 2013’s 10,120. Referring to 2014 as an “exceptional year” for Bentley, its chairman
and CEO, Wolfgang Dürheimer cited the growing appeal of the brand, with the launch of new models such as the Continental GT V8 S and GT Speed coupé and convertible and Flying Spur V8 all helping to drive success.
Watford Workshop
Packaging and repackaging is one of the many projects carried out at Watford Workshop
A different way of working
Callum Bentley explains why Watford Workshop is a UK production facility unlike any other.
‘‘I
believe we truly have the most diverse production process in the UK.” Hefty words spoken by Watford Workshop general manager Linda McIntyre. But believable ones when you see the sheer variety of processes taking place in the small factory on the outskirts of Watford. What is more impressive is the absolute enthusiasm its employees have for, what some would say, are the more mundane and repetitive tasks carried out for suppliers all across the UK. Watford Workshop is a registered charity that provides work experience, skills training and employment for people with disabilities. The workshop, which celebrated 50 years of operation last
year, delivers comprehensive, high quality and competitively priced services to commercial partners. According to a Labour Force Survey published in 2012, disabled people were more likely to be employed than they were in 2002, but disabled people remain significantly less likely to be in employment than non-disabled people. The survey found that in 2012, 46.3% of working-age disabled people were in employment compared to 76.4% of working-age non-disabled people. The gap had reduced by 10 percentage points over the past 14 years and has remained stable over the past two years despite the economic climate. The team of full-time staff and volunteers at Watford Workshop
Our rejection rate is less than one per cent. The scrutiny of our work from the customer is so much higher due to our employee base, so everybody here takes it extremely seriously Linda McIntyre, Watford Workshop
WORKFORCE & SKILLS
is working to reduce these figures, providing a large variety of solutions to organisations of all sizes including complex mechanical and electrical assembly, to simple packaging and labelling. Watford Workshop employs about 50 people with disabilities and provides them with the necessary training and more to equip them for industry work. The model Watford Workshop runs incredibly well. Engaging with local schools, work experience plays a large part in the recruitment process. McIntyre said that the influx of interested schools and individuals looking for possible placements is getting so overwhelming that they are having to turn people away. She said the workloads are also increasing, however the major problem is finding the space to accommodate the blooming workflow. “We try not to reject anybody, so we will try to fit new jobs in somewhere, whatever it takes to get the job done. We have people working in the back office, even on the tables in the canteen. “We’re not here for constant supply, customers work in peaks and troughs, so we’re always on the lookout for new work.” But overall, despite the high pressure deadlines from high end customers such as Tesco, McIntyre said the major emphasis is on customer satisfaction, praising her workforce for its impeccable quality control. “Everything we do here has to go through two to three different levels of sign off. “Our rejection rate is less than one per cent. The scrutiny of our work from the customer is so much higher due to our employee base, so everybody here takes it extremely seriously. “We price all of our jobs on ablebodied people, and it’s our job to make sure we can hit that target with the people we have, which we do. “We are a quality outsourcing business doing quality work.”
FURTHER INFO: You can get in contact with Watford Workshop by phoning 01923 220 256 or by emailing enquiries@ watfordworkshop.co.uk
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 53
Ready to serve? To mark the launch of the new Manufacturing Services Thought Leadership Network (MSTLN), spoke to its key founders, Chairman Henry Anson and Professor Tim Baines from Aston Business School.
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Where did the idea for the MSTLN come from and what is it all about?
Henry Anson: We have been running the Automation Advisory Board (AAB) now for two years, with the express aim of raising automation issues to a strategic, board level. The intention was to use all of our media assets, print, web, social media and events to achieve this and recent results published in the Annual Manufacturing Report would indicate that this initiative is working. We are absolutely passionate about the competitiveness and profitability of UK manufacturing and have become convinced via conversations with Tim Baines, anecdotal chats with senior manufacturers and reports like The Manufacturer Mega Trends Report from KPMG that manufacturing services present UK manufacturers with an opportunity to gain a competitive advantage over global competitors, via early adoption. At the moment the
concept of services or servitisation is a familiar one with the likes of Alstom, BAE and Rolls Royce but not so with the rest of the manufacturing community, hence setting up the MSTLN, copying the delivery channels currently used for the AAB.
Why is servitisation so important for manufacturers right now?
Tim Baines: The conversation about servitisation really started to gain traction through the last recession because manufacturers were looking for ways to defend their revenue streams, and they saw product sales falling through the floor, while services were more resilient, so they woke up to the idea that servitisation would help them build resilience into their business. As we’ve gone through the recession and started to move into better times,
Ready to serve?
Manufacturers need to share stories and experiences in order to improve their own process as well as benefit the sector as a whole Henry Anson
manufacturers are now waking up to servitisation as an opportunity to actually grow their businesses. Now the conversation with manufacturers is much more around the opportunity of growth through services, rather than just defence through services. HA: The customer, whoever that may be, is becoming less interested in the product than the service that product provides. This trend can only increase as the Internet of Things becomes more prevalent. Services or servitisation requires that manufacturers look at their entire business process, from end to end this will help businesses open new, longer term and more profitable income streams.
Is this something we’re starting to see across all sized manufacturing businesses? Or is this a model reserved for the larger operators?
TB: We’ve worked with 50 SMEs over the past three years in the West Midlands region. Our work has been to introduce these companies to the concept of servitisation, in particular, advanced services, and we’ve seen a real appetite among these companies to understand the concept. Not all of them have been successful in developing a servitisation strategy because of various circumstances, but we’ve had about 20 of the 50 which have really made some progress. We’ve measured the growth value added achieved through these companies adopting servitisation and it’s somewhere in the region of £6m collectively across the SME companies.
Manufacturing SERVICES
What are the main barriers holding manufacturers back from adopting the servitisation model to their business?
Well, don’t forget that the UK actually leads the world in adoption of servitisation. But there are many reasons why this isn’t yet wholly pervasive: lack of awareness of the idea, lack of knowledge about how to make the transition - or resource to do so, and existing production-based mindsets in manufacturing are just some of them. That’s why my work at Aston, and the work of the network to raise awareness is important.
How important is knowledge sharing between businesses in driving the servitisation model?
How much stake should be put in the servitisation model in the future growth of UK manufacturing?
TB: As a professor at a leading business school, I could have invested my time in any variety of topic areas, but I chose to invest myself 100% to servitisation,and here at Aston Business School have been working this area now for four years. Before that I was at Cranfield University where I worked for about five years in related fields. I am thoroughly convinced that it has a strong contribution to make to the future success of manufacturing in the UK. It will take an awful long time for the ideas of servitisation to be truly embedded inside of manufacturing companies, but I’m not going anywhere in a hurry.
TB: It’s very early days yet. We are in As we’ve gone through the recession partnership with the Manufacturing Services and started to move into better times, Thought Leadership manufacturers are now waking up to Network (MSTLN) and a big motivation with that servitisation as an opportunity to actually is there is a need for the grow their businesses business community to get these messages sent Prof. Tim Baines across clearly with very little ambiguity and very much true to the idea. One of the worries is a diffusion of the concept. There are a lot of consultants out there who want to sell The conversation has been going a something new and this “servitisation” little while now, but like any innovation, phrase comes along which they what you’re seeing at this stage in haven’t seen before, which they don’t time is lots of threads. It’s really in the properly understand. We have to be past 18 months that those threads very careful. One of our roles is to be have coalesced as one set of ideas the custodians of the knowledge and about servitisation. And those sets of defend that knowledge and say “this is ideas are only owned by a few people. the concept, this is what servitisation The job is one of engagement with is and if you do this, then you are the community about steering the servitising. If you do the other, then you proliferation of these ideas and getting are not.” these ideas out there. HA: The whole servitisation model is still not widely understood and the pace of change and development is truly frightening. Manufacturers need to share stories and experiences in order to improve their own process, as well as benefit the sector as a whole.
FURTHER INFO: Find out more about the Manufacturing Services Thought Leadership Network at: www.mstln.com & @MSLTN_UK
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 55
The impact of service thinking
Manufacturing SERVICES
It all sounds so simple, but in the rough and tumble of business life, the answers are not always so obvious
What do you think?
I
“Service thinking is just for big companies.” Wrong, says Nick Frank, founding member of the steering committee for the newly formed Manufacturing Services Thought Leadership Network.
n my experience of the manufacturing industry, those companies that achieve an EBITDA of 20-35% do so because they have found a way to have a significant influence on their customer’s business’s profitability. Partly it is achieved through excellence in technology, manufacturing and sales/service. But a major element is having the mind-set that value is actually created in the customer’s business when they use the product or service. Traditionally we have called this ‘business nous’. Today management gurus now call this customer oriented approach service thinking. It goes beyond talking to your customers and asking what they want. It is developing a really deep understanding of how your customer’s business makes money
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and sometimes your customer’s customer. With this insight, then figure out how your technology and knowhow can make a difference. Service Thinking can be applied to companies big and small with impressive results. Take UK mould maker R&D Leverage Europe (www.rdleverage.com). This Nottinghamshirebased UK company of 85 people is part of an American business with a global workforce of 322. The UK company
specialises in single stage tooling used to mould niche plastic PET consumer packaging. Alan Tolley, the UK managing director says: “In our key markets we sit at the end of the customer value chain. At the front end are the major brand owners such as global cosmetic companies, who constantly innovate their packaging to differentiate their brand. “Having designed the packaging, the brand owner chooses a converter to turn their creation into reality at a quality, cost & delivery. The converter then chooses a mould maker such as ourselves to provide the production tooling. Being at the end of the value chain, we find ourselves under significant price pressure, yet we are also being asked by the converters to do more of the technical design work. “We started to realise that when given the opportunity to talk to the brand owner, with our huge library of pre-form designs and experience, we could advise them on how to push the boundaries of their packaging designs. Then if they came to our facility for just a couple of days, together we could take four to eight weeks out of the prototyping phase of the project. “As we started to explore this business model, we found we were able to sell a prototype mould at a significant premium. In additional, as we had co-created the design, often the brand owner would specify us as the provider of the production tooling” Based on his experience, Tolley intuitively understood the value R&D Leverage could offer the brand owners within the value chain. By using their knowledge and organising their manufacturing facility they were able to help brands differentiate their packaging and deliver projects up to two months faster. The additional revenue generated, far outweighs any premium they had to pay. Now Alan and his team are are using the same thinking to find new ways to grow. It all sounds so simple, but in the rough and tumble of business life, the answers are not always so obvious. I believe the key is to re-orientate our thinking to understand that value creation occurs in the customer. Then by taking a structured approach to understanding how they make money, develop ways to make our customers more successful. Do this, and any company including SME’s, can achieve results through Service Thinking. FURTHER INFO: Nick Frank supports clients to find pathways to growth through Service Thinking. He can be contacted on nick.frank@frank-partners.com
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There are over 600 parts that can be used in the maintenance of a turbine, but all we think about are the blades, the motor and the metal structure Connecting
GROW:OffshoreWind delivered a £7m boost to the sector in 2014
Mark Knowlton, specialist at the GROW:OffshoreWind service, explains why a commitment to the UK is more than empty marketing rhetoric from developers and Tier 1s.
T
here has been a fair amount of criticism from some commentators about how seriously offshore wind developers and their Tier 1 contractors are when it comes to engaging with the UK manufacturing community. Historically, this may be true but there are some examples of good practice now emerging and we are playing our part at GROW to build greater collaboration between SMEs and larger enterprises. A number of supply chain development activities are well underway, with key players in the sector, such as Alstom, MHI Vestas, Siemens, A2SEA, Statoil, Vattenfall and Navitus Bay, taking part. Much of this work is not widely documented, largely due to the fact that
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in this competitive environment these types of projects are protected through Non Disclosure Agreements (NDAs). Meet the buyer events - led by developers – are one example and give Tier One contractors and UK manufacturers the chance to be in the same room at the same time. As well as the formal presentations there is always a valuable opportunity for manufacturers to speak with the buyers face-to-face over lunch and at their stands during the open networking sessions. A perfect example of this was a supplier day to showcase the £1.5bn Dudgeon Wind Farm. More than 150 firms attended from the supply chain and were given advice on tendering for the products and services required by the Tier 1s.
One of the biggest issues we face is making sure that suppliers know about the opportunities and ensuring relevant connections are made. This is another area I’m pleased to say we are making progress in. A number of Tier 1 suppliers have provided us with a detailed list of structural elements and commodities they require and it is our job to match them with companies who can meet their requirements. Fabrication and steel structures are a good example of this in action. GROW has successfully established a detailed list of UK SMEs who excel in this work, many of whom are already building for the oil and gas/marine sectors. These are now being given to the major developers and Tier 1s so they can make informed decisions. However, the smaller manufacturers also need to understand there is work to do on their part and should be prepared to research the market and see where their processes and products could be utilised. There are over 600 parts that can be used in the maintenance of a turbine, but all we think about are the blades, the motor and the metal structure. Admittedly, some of these components are very technical and only available from the OEM, but there is a long list of parts that local suppliers can fulfil. Again our advisors are helping in this field by detailing the specification and performance criteria of each part and then inviting suppliers on our database to tender for it. We’re even supporting them on how to bid for work. So whilst the marketing rhetoric may be strong, there is little doubt that there is substance behind the words…it’s now up the smaller manufacturers to take their share of the opportunity. www.growoffshorewind.com @grow_osw
Grant Thornton
ENERGY
GROW:OffshoreWind has been very active in the North East of England, providing support and funding to more than 15 companies. One of these firms is Metaltech in County Durham, which is also benefitting from its relationship with the Manufacturing Advisory Service (MAS).
A
leading North East heat treatment specialist is targeting growth in aerospace, defence and offshore wind after securing a major national accreditation and funding to boost its capacity. Metaltech Ltd, which employs 24 people at its County Durham facility, has become one of the first firms in its field to be awarded the SC21 Bronze Award, highlighting a commitment to world class quality, delivery performance and continuous improvement. Supported by the Business Growth Service’s Manufacturing Advisory Service (MAS), the company took just eighteen months to go through the rigorous process and expects to use the standard to be in with a chance of supplying more components to the MoD and next generation aircraft. It comes just a few weeks after it received £50,000 of GROW:OffshoreWind funding towards the purchase of a specialist Bogie Hearth furnace (aimed principally for post weld heat treatment cycles) and additional, larger sealed quench facilities, including marquenching for distortion control. “SC21 is a major achievement for our business and I believe we’re one of the smallest firms to go for and successfully secure the Bronze award,” explained Dr Graeme Forster, managing director. “A lot of the major Tier 1s and primes will only consider you if you have this accreditation and we saw it as a natural progression from the AS9100 standard we already held.” He continued: “It’s a long and demanding journey, but it provides
you with a great continuous improvement framework that delivers better communication, efficiency gains and cross functional working within the workplace. “The support has been tremendous and it wouldn’t have been possible without the knowledge and patience of advisors Alan Whittaker and Jim Barr. They understand our business, got the timing spot on and then delivered the external assistance required to get us ready for approval. “This included an automated spreadsheet system to allow us to closely monitor both quality and delivery performance – two of the key SC21 metrics. We are now in a much better position to win new work in the aerospace, defence and security sectors.” The Manufacturing Advisory Service has worked with Metaltech for more than five years and recently advised it on a successful application to the GROW:OffshoreWind Enabling Fund. Nearly £50,000 has been secured to go towards the acquisition of new furnaces and quenching capabilities that will increase its
Going for Growth: (l-r) Dr Graeme Forster (Metaltech), Alan Whittaker and Jim Barr (both MAS)
A lot of the major Tier 1s and primes will only consider you if you have this accreditation and we saw it as a natural progression from the AS9100 standard we already held
capability from one tonne to four tonne payloads – essential when providing key thermal processing for the larger components demanded in these sectors. “We were pointed in the direction of GROW:OffshoreWind as a mechanism to gain some additional funding towards our investment plans. It didn’t stop there as we received help to put together the bid and are just about to start production with the larger Bogie Hearth furnace.” He added: “I fully expect offshore wind and marine to be our biggest growth markets in 2015.” GROW:OffshoreWind is delivered by Grant Thornton and programme partners the Manufacturing Advisory Service (MAS), Renewable UK and the University of Sheffield. www.metaltech.co.uk
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 59
Programming the revolution
Manufacturing Technologies
Programming for the many-core revolution Jonny Williamson talks a language for computers of the future with Royal Academy of Engineering research fellow, Dr Antoniu Pop.
W
e live in a technologydriven society where economic growth is intrinsically linked to innovation and engineering. Take mobile technology, for example, devices such as laptops, smartphones and tablets. It’s one of the fastest growing sectors across much of the globe, yet continued growth is highly dependent on increased computing capabilities. However, therein lies the problem, according to University of Manchester’s Dr Antoniu Pop. Up until a decade ago, single core computer processors were constantly evolving and becoming faster, often inaccurately talked about in relation to Moore’s Law. But that exponential growth has gradually tailed off, falling from 50 - 60% each year, to around 10 - 20%. “The main reason for that is because we’ve reached the limit of our capability
Moore’s Law – named in honour of Gordon Moore, co-founder of Intel, who observed that the number of transistors per square inch of integrated circuits had doubled approximately every two year since the integrated circuit had been invented, and predicted that this trend would continue.
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to accelerate sequential computing; which has necessitated a shift towards integrated multiple cores in every chip,” explains Pop. “Multi-cores are a problem in themselves though, as we haven’t learnt how to fully exploit this new type of architecture, especially in terms of programming.” The main current programming paradigm, termed imperative, focuses on control flow. It is based on giving computers a sequence of instructions, a logical motion from one step to the next. That method is ill-suited when dealing with multi-core architectures, this far hampering attempts to increase processing speed and power. Working in collaboration with software companies the likes of ARM and IBM, alongside several research labs, Pop and his small team are addressing these programmability, performance and energy issues, from a software engineering perspective, designed to fully exploit the power of many-core processors. Instead of focusing on control flow and the sequence of steps that need to be taken, Pop’s approach focuses on data flow; with the aim being that once data becomes available, i.e. it’s been processed by one core, it can be immediately processed by another one, similar to the way a vehicle advances along the various stages of a production line.
It’s not all about performance and productivity, power dissipation and electrical consumption are becoming increasingly important Pop’s programming model that utilises this technology, OpenStream, is hoped to become a complete solution, able to be used by most computing platforms from everyday smartphones and desktops, to ultra-high-performance computer systems. Parallel programming has been around since the early days of computing, but until recently it was largely restricted to a small number of experts in the field of highperformance computing. The average software engineer, according to Pop, didn’t need to cope with the tremendous complexity of writing parallel programmes or to understand the intricacies of concurrency and synchronisation. The ideal objective in parallel programming, he continues, is to get to and manage linear speed up, i.e. if you throw additional cores at a problem, say twice as many, you would expect performance to double in turn. “Moore’s Law still holds true, we are increasing the number of transistors in a chip by two every 18 months, effectively doubling the number of cores every 18 months.” At the end of the five year Royal Academy of Engineering Fellowship, Pop is aiming to have workable prototypes for software engineers, with an initial focus on the high-performance computing industry and those involved with big data. “Once that’s been achieved we’ll move towards making it much more usable for your everyday programmers, to improve productivity. “Though it’s not all about performance and productivity, power dissipation and electrical consumption are becoming increasingly important, especially with the proliferation of smart mobile devices and the need for longer battery lives/charges,” Pop concludes.
Rockwell
Manufacturing Technologies
Cementing the benefits CEMEX benefits from Integrated Architecture approach from Rockwell Automation Background
CEMEX, a global building materials company, provides high-quality products and reliable service to customers and communities throughout the world. Its operations network produces, distributes and markets cement, ready-mix concrete, aggregates and related building materials in more than 50 countries, and maintains trade relationships with more than 100 nations.
Challenge
With its use of Climafuel expanding – from 30 to 60 percent – CEMEX’s Rugby plant, the largest cement works in the UK, needed additional unloading and conveyor capacity to complement the pair of bays already in existence. The loading bays use a combination of screw conveyors and walking floors to transport the Climafuel from the lorry unloading area to the kiln. As well as the automation demands, the new loading bay also needed a safety infrastructure to help protect employees and fuel delivery drivers. The company originally specified an Allen-Bradley ControlLogix programmable automation controller (PAC)-driven solution from Rockwell Automation, but with automation and safety components supplied by different third parties.
Solution
Westbury Control’s solution was still based on the ControlLogix PAC, but all the other primary components were also from Allen-Bradley – running on an EtherNet/IP network. In addition to the PAC, the automation and safety solution comprised of PowerFlex 755 drives for driving the motors, E1Plus solid-state overload relays, Stratix
switches, SmartGuard 600 Programmable Safety Controller, GuardShield safety light curtain, SensaGuard RFID Coded non-contact safety switches and actuators, RightSight™ photoelectric sensors and 440T ProSafe coded key exchange switches. According to Daron Shaw, electrical plant development engineer at CEMEX’s Rugby plant: “The unloading pod, which resembles a large cube with one open face, could have potentially been a dangerous place to be because of the exposed screw conveyors, hence our requirement for the safety solution. What is more it had to be automatic and not reliant on the actions of the drivers.” Paul Knott, from Westbury Controls, explains the principal: “In operation, lorries are reversed into the bay and the drivers enter via side doors to undo the clasps on the back of the trailer. The safety solution, driven by the SmartGuard 600, uses a safety light curtain to detect personnel and photoelectric sensor array across the open face of the cube to detect the presence of a lorry. If either the safety light curtain is operated or the
side doors are opened (protected by the 440T Prosafe coded switches and monitored by the SensaGuard switches), the system shuts down by interrupting the power to the motors. The safety logic dictates that the system only re-activates when a lorry is present, both side doors are shut and a restart button is pressed by the driver. The unloading pod side doors are also fitted with a trapped-key interlocking system to make sure that the driver cannot become locked inside the pod while undoing the trailer clasps.” Westbury Controls has also written all the software for the installation.
Results
“After a visit to Rockwell Automation’s UK headquarters in Milton Keynes for a demonstration of the technology we became convinced that this was the way to go,” Shaw elaborates. “The E1Plus is a revelation, as it will allow us to easily justify the investment of intelligent components on a cost basis.” The beauty of this system,” Knott explains, “is that CEMEX has been able to achieve more intelligence and greater functionality at no additional cost compared to the initial specification. “The intelligence now available to CEMEX will allow them to target specific timeslots for downtime,” Knott elaborates. “As motor performance details can now be collated, historic data will allow them to identify trends and formulate maintenance plans accordingly.”
FURTHER INFO: www.rockwellautomation.com/ industries/mining/ The results mentioned above are specific to CEMEX’s use of Rockwell Automation products and services in conjunction with other products. Specific results may vary for other customers.
March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 61
Smart fabrics for 21 century soldiers st
The chance meeting of a weaver and an electronic designer has produced complex woven electronics, a flexible circuit board that could revolutionise how soldiers are kitted out.
Project background Thompson and Swallow met while working at the Design for Life Centre at Brunel University London, attempting to achieve a bodyworn, voice-communication aid which could be integrated into an item of clothing. Their endeavours resulted in a passive electronic circuit. Though Brunel weren’t successful in commercialising the technology, the pair acquired the patents and span-out an independent company, Intelligent Textiles Ltd. The prototypes have been, and continue to be, manufactured from a workshop in Surrey. A serendipitous journey that involved the Australian Wool Innovation, the Canadian Military, Innovate UK, the CDE (Centre for Defence Enterprise), the DSTL (Defence Science and Technology Laboratory), BAE Systems, DTI and NATO led to a trial project being backed by both the US Marine Corp and US Army. The five-month, full-user trial began at the end of February 2015 and will evaluate the entire system – the battery and the electronic fabric architecture (dubbed the Spirit Network), which has been embedded into an existing piece of kit. The vests will be integrated with the US military’s own Nett Warrior electronics system, and be sent out into the field to assess how it affects and aids soldiers’ ability to fulfil their roles.
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Dr Sta n Sw a foun Thomps llow and ders , Inteon, direc Asha lligen tors & t Tex tiles
Among oth e kit includes r things, a modern sold ra ie computer d dios, night vision goo r’s gles, evices. Conventio na break, som l cables are likely to sn e a in a comba thing which can be ca g and/or tastrophic t situation. By connect in equipment g the various pieces o f to trailing cab a single flexible circui military les are remo t board, potential pre ve ssure sores d, along with any they may ca Additionally use. , packs each the number of separa te p battery ie ce of equipme is reduced to nt req significantly one single power sour uires ce a solider ha decreasing the amoun , s to carry. t of weight The fabric is a helmets, ba lso being integrated in ck platform, w packs, gloves and we to shirts, ith a ring m apons ain circuit allowing power to flow wherever it needs to without the need for cables.
Intelligent Textiles
Manufacturing Technologies
Manufacturing process Able to be woven on standard looms, Swallow provides an electrical schematic which Thompson translates into warp and weft A conductive yarn allowing power, data, switching, antennae or any other electrical architecture is integrated into the matrix The handmade prototype provides the necessary details for Intelligent Textiles’ automated weavers, Lancashire-based Mitchell Interflex, to produce the finished fabric Ramping the process up to an industrial scale wouldn’t be challenging as the method of weaving a pattern into fabric has a history which stretches back over centuries Improvements are currently focused around barrel connectors, the system’s only clearly visible and tangible component Militarised connectors have typically not been body-worn, so the emphasis moving forward is on usability and human-interaction The comprehensive bi-lateral agreement between the UK Ministry of Defence and the US Department of Defense is hoped to result in innovative, life-saving kit being adopted expeditiously by both parties Intelligent Textiles has worked closely with BAE Systems to create the Broadsword product family – a move which is hoped to hasten the UK military’s adoption of the technology Inductive charging is also seen as a potentially beneficial application for the technology, i.e. an inductive coil being placed in both the back of the vest and in the seat of a vehicle. When the soldier sits down, the whole system begins charging A similar technique, though on a smaller scale, is being explored for personal radios
FURTHER INFO: Read more about Intelligent Textiles’ story here bit.ly/1CT8P1k March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 63
Microsoft
IT in Manufacturing
Not your father’s factory
A
s a breed, manufacturers are pragmatic folk. Innovation - whether of products, IT systems, or workplace practice - generally comprises a series of gradual changes to the status quo, letting each change fully bed in before moving to the next. It’s a cautious approach that has worked well. But are there signs of change afoot? Because it’s certainly not difficult to come across manufacturers embracing - and with an enthusiasm unheard of a few short years ago - technologies such as additive manufacturing, rapid prototyping, smart devices, and the Internet of Things. And in the process, something quite distinct is happening. Namely, that they’re changing their whole customerfacing proposition, says Colin Masson, Microsoft’s global industry director for manufacturing and distribution. “What we’re starting to see is manufacturers piecing all these new and emerging technologies together in order to re-imagine the entire customer decision journey,” he enthuses. “For once, it’s not about making small incremental changes, but fundamentally re-thinking every aspect of how they serve customers - right from product design and configuration,
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A wave of technology innovation has left manufacturers wellplaced to re-think how they can serve their customers, Microsoft’s Colin Masson tells IT Contributing Editor Malcolm Wheatley. through to delivering the best possible aftersales service.” For proof, he points out, just take a look at The Manufacturer’s own Annual Manufacturing Report for 2015. Significantly greater numbers of manufacturers are spending more money on IT projects, and focusing that new investment on realigning their businesses around customer-impacting areas of their business - CRM, ERP, aftersales service, and product development. “Customer experiences are quickly becoming a significant competitive differentiator, and by focusing on delivering great customer experiences which customers will want to share, manufacturers can create much more sustainable and much more profitable relationships,” sums up Masson. “But it’s not about achieving ‘digital convergence’ in isolation: intelligent operations are needed to deliver on customer promises - which calls for breaking down the internal walls of the organisation, empowering people with direct access to tools and information, and building truly connected business processes aligned with the end-to-end customer decision journey.” So what does that mean in practice? Microsoft sees manufacturers executing three core strategies in their pursuit of this goal, says Masson.
What we’re starting to see is manufacturers piecing all these new and emerging technologies together in order to re-imagine the entire customer decision journey “First, they’re focusing on creating amazing customer experiences with intelligent customer engagement solutions that are personalized, proactive and predictive - pulling data from call centres, social channels, the field salesforce, and customer feedback into a single, coherent ‘view of the customer’, and then leveraging that to drive improvement. “Second, they’re investing in the digital workplace - building a mobile-first digital business that’s more productive, better engaged with customers, and firmly focused on meeting digitally-enabled customers as peers. “And third, they’re working hard to become more responsive to their customers, aiming to be marketdriven, and not just demand-driven. In other words, they’re investing in their manufacturing, engineering and supply chain operations, making them more agile, more capable, and more responsive.” Roll it all together, concludes Masson, and there’s an obvious overlap between Microsoft’s own technology footprint and the sort of technology capabilities that manufacturers will be looking for as they aim to reflect these goals in their day to day operations. Namely, Microsoft Dynamics AX ERP, Microsoft Dynamics CRM, and a host of connective capabilities stretching from the Internet of Things through to machine learning and smart mobile devices for the workplace. “Talk to us,” he sums up. “We understand manufacturing and are probably already powering your shop floor – and we have everything you need to transform your customers’ experiences.” FURTHER INFO: To learn more visit www.microsoft.com/en-gb/ dynamics/manufacturing.aspx
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Unique information-packed factory tours showcasing the best practices of UK manufacturers. Each visit will include insightful presentations by senior management, a shop-floor factory tour and a Q+A/feedback session. Attending our factory tours will: • Allow you to gain insight into other UK factories and add to your own continuous improvement strategy • Help highlight the diversity of British manufacturing and push your sector to the forefront of British industry • Provide a platform for furthering your knowledge and inspiration for your own manufacturing projects • Gain insight into the employee engagement strategies of other companies, enabling you to apply this to your own programme For more information on upcoming tours or if you would like to become a host site please contact e.bailey@hennikgroup.com
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Playing well with retailers
Gavin Davidson, NetSuite’s vertical industry lead for manufacturing, explores whether frictionless omnichannel commerce is a realistic proposition for manufacturers.
S
elling directly to consumers is a compelling proposition for manufacturers, and if they get it right they can reap serious financial rewards. From the chance to tap into new revenue sources to the ability to target their audience directly, there’s a great deal to be gained through omnichannel retailing. Manufacturers increase their visibility to consumers, strengthen brand control and build on customer loyalty. In today’s increasingly competitive market, retailers have to ensure they offer consumers a wealth of variety, with no brand bias. With this in mind,
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who better to sell that product than the manufacturer themselves? Of course, when it comes to omnichannel commerce, it’s important that manufacturers remember that they must strike a balance between risk and reward. Firms need to make sure that direct selling doesn’t backfire and result in lost revenue, simply because top partners will no longer carry their brand. While manufacturers need to focus on managing channel conflict with their retail partners, that may resist the omnichannel model, they also have another challenge.
Today’s consumers are accustomed to having the ability to buy anything, anytime, from any channel
They must master new business processes and technologies, including running an engaging, efficient and mobile-optimised e-commerce site, as well as managing consumer-orientated inventory, order management, fulfilment and customer support. In return, manufacturers have the opportunity to host the experience from the point of browsing to the point of sale. Ultimately, it’s customer demand and the availability of technology that support this nature of retail. Today’s consumers are accustomed to having the ability to buy anything, anytime, from any channel. It’s up to manufacturers and their retail partners — from big-box chains to local retailers — to collaborate and compromise in
NetSuite
order to satisfy those expectations amid a rapidly changing marketplace. So, how can omnichannel retailing be a win-win for manufacturers and retailers?
Overcoming retailer resistance:
When it comes to omnichannel commerce, it’s important that manufacturers remember that they must strike a balance between risk and reward
Keep prices at MSRP or above – Retailers’ bottom lines take a hit when manufacturers sell direct to consumers at prices lower than the marketplace at large. Manufacturers need to work with their retail partners to ensure that revenue and margins aren’t pinched. A commitment to not sell at below manufacturer’s suggested retail price (MSRP) is a critical factor in the manufacturer/retailer relationship. Suggest consumers buy from retailers – Manufacturers’ websites should explicitly recommend that consumers visit a retailer’s website or store, especially if a given product is out of stock. Share multimedia content with retailers – Dealing with hundreds if not thousands of suppliers, retailers face challenges in developing and maintaining content and imagery that support an engaging online experience. Manufacturers can build retailer trust by supplying top-quality product information, a selection of detailed images and polished product videos that retailers can feature on their own sites. Share intelligence with retailers – A manufacturer’s website generates a wealth of data on consumer activity and product appeal. Often, it will offer the full range of a manufacturer’s products, while a retailer may resell only a selection. Making sales and customer intelligence available to partners can prompt a retailer to expand its product line-up and optimise its merchandising and marketing techniques.
Develop unique stock keeping units (SKUs) and product names for top partners: Manufacturers can help store-based retailers combat showrooming – With product SKUs and even names unique to a large retailer, consumers can’t easily find the same product on a rival website. While it’s not practical to scale this technique across every partner, unique SKUs for top partners can help sustain profitable relationships. A collaborative and customer-centric approach – Manufacturers and retailers can meet the dual demands of consumers. On one hand, consumers expect detailed product information, a rewarding brand
IT in Manufacturing
Omnichannel retailing will be key for those manufacturers that are keen to stay one step ahead of the competition
experience and the option to buy directly from a manufacturer’s website. On the other hand, consumers tend to view retail websites, especially those with product reviews, as a more objective source of information. Satisfying both sets of expectations is mutually beneficial for manufacturers and retailers alike.
Hurdling the technology roadblocks:
A single, integrated cloud platform – Manufacturers beginning to sell online or looking to replace a first-generation patchwork of applications can use a single, integrated cloud platform that seamlessly connects every step of the business – e.g. e-commerce; in-store; inventory and order management; merchandising; marketing; financials and customer service. Since a cloud platform can be implemented in a fraction of the time and cost needed for an on-premise alternative, time to market is also sped up. The right approach – With the right cloud approach, manufacturers can build out channels that deliver real-time inventory visibility, an engaging website that adapts automatically to mobile platforms, and a 360-degree view of all customer interactions to improve services and insights, at the same time as providing a foundation for targeted marketing. Technology will be an integral resource for manufacturers if they are to craft the customer experience that is desired in today’s digital age.
In the future, omnichannel retailing will be key for those manufacturers that are keen to stay one step ahead of the competition. Those who fail to offer the option of online shopping will invite consumer scepticism and ultimately risk losing brand presence, engagement and customer loyalty. The answer lies in deploying the right technology, offering concessions to retail partners and creating a seamless, direct e-commerce experience. March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 67
@logistics Reply
IT in Manufacturing
More and more, manufacturing supply chains depend upon visibility, collaboration and the ability to execute
but across multiple (including suppliers’) sites, and matching this information against customer demands, can make procurement decisions based on actual inventory and demand data. The resulting reductions in spot buying (often at higher prices), additional transportation costs and in working capital and associated financing costs are spectacular.
Execution
UK business support network, @logistics Reply, looks at how cloud-based software solutions can strengthen competitive manufacturing supply chains.
U
K Food manufacturers are constantly battling to keep several balls in the air at the same time; a fragmented and increasingly global supplier base, the ever-changing demands of their customers, food safety and traceability legislation, internal efficiency and profit targets, all whilst driving innovation. How can this juggling effort be supported in a cost-efficient way? Answer: on-demand or cloud-based supply chain execution solutions. Increasingly regarded as “business as usual” for industrial as well as social applications, the cloud combines speed to benefit with affordable, usagebased cost models and a platform for innovation. The cloud can represent a complete IT deployment strategy, especially for small and medium-sized enterprises or can be used to deploy point solutions to fill gaps in an onpremise solution portfolio. It can certainly help with our juggling problem.
Visibility
By its very nature, the cloud is part of a pervasive and powerful network, which brings people together and enables us
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to communicate using light, easy-touse applications. With the exchange of manufacturing and supply chain data, manufacturers can begin to view not only their customers’ demands, but also their suppliers’ inventory positions and, critical if working across several manufacturing sites, their own inventory positions matched against customer demand. Short shelf life products and ingredients can be proactively managed and disposals due to out of date code significantly reduced.
Collaboration
Cloud-based supply chain solutions take full advantage of this visibility to enable supply, demand and inventory data to be exchanged and amended in virtually real time. Once this data is shared, collaborative decisions and even business processes begin to emerge. Suppliers can not only check inventory positions at their own and their customers’ – the manufacturers’ – site, they can start to propose product pricing and deliveries, based on their own manufacturing programs. Planning managers can view inventory at partcode level not only on their own site,
Underpinning supply chain visibility and collaboration, is a strong process enablement and execution capability. This capability is based on existing, cheap and easy to deploy bar-code printing and -reading technologies and includes: Inbound load creation and labelling at supplier sites; the management of gates and docks to avoid bottlenecks and to ensure that raw materials and ingredients are routed rapidly to the required locations; the picking and issuing of these materials to production, including full date and batch management and traceability; the creation of finished goods inventory visibility and the storage, picking, loading and shipment of finished products (again with the capture and management of date and batch information), complete with the generation and transmission of customer-compliant Advanced Shipping Notifications (ASN’s) and labels and even proof of delivery with signature capture and geo-location. Drop ship/direct fulfilment and returns processes are also included in a closed loop supply chain execution and visibility application suite.
Conclusion
More and more, manufacturing supply chains depend upon visibility, collaboration and the ability to execute. The good news is that the limiting factor in our supply chains today is no longer technology, but that most basic of human emotions, trust.
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Overall Equipment Effectiveness
IT in Manufacturing
Focused improvement for OEE OEE calculations are now built into SCADA systems, for example, and most MES will deliver OEE as a standard report
G
o back a few years, and a concept known as Overall Equipment Effectiveness (OEE) was all the rage as a factoryfloor improvement tool. Simply put, it involved working out the theoretical maximum output from a piece of equipment or production line, and then expressing the actual output produced from it as a percentage of that theoretically achievable output. In many cases, the result was sobering. For OEE made it abundantly clear how small losses of efficiency—temporary stoppages of just a minute, a short period of slow running or a minor breakdown—could quickly add up to a large number. Today, the paperbased approaches to
Overall equipment effectiveness tells you the size of the opportunity. But only management can deliver on that promise, finds IT Contributing Editor Malcolm Wheatley.
OEE systems that characterised many mid-1990s OEE implementations have largely gone. OEE calculations are now built into SCADA systems, for example, and most manufacturing execution systems (MES) will deliver OEE as a standard report. For those who want OEE — and just OEE — then specialist dedicated factory-floor terminals offer an entry-level capability.
Opportunity missed
But getting an OEE number is only the half the battle, however it is delivered. For to obtain the prospective improvement in efficiency — and output — that OEE delivers, manufacturers have to translate OEE’s implicit promise into actions and improvement initiatives. And here, even purveyors of MES systems concede that manufacturers’ approaches to this leave something to be desired. “The buying process involved with a manufacturing execution system is typically oriented around capital expenditure, cost, and IT integration,” says Tim Barber, European business director at manufacturing execution system vendor, Lighthouse Systems. “All too often, there isn’t a matching internal dialogue about how the data is going to be used, how improvements are going to be resourced, and how the improvement impetus is going to be sustained.” In short, sum up insiders, a manufacturing execution system project is often couched in terms of installing the system—and not in terms of actually using it to deliver improvements.
What you often find is people focusing on problems that they think that they can fix, rather than on getting the biggest bang for their buck Fraser Thomson, Consultant, Cimlogic
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Strategic targeting
So what advice do they offer? Ask the question, and some recurring themes quickly emerge. Short interval control, for instance — in other words, very frequent and regular reviews of OEE data, while the circumstances are still fresh in people’s minds. “Even doing reviewing OEE data the following morning is doing it in a rear-view mirror,” says James Wood, a solutions consultant at Aptean. “Do it in real-time, with the shift that’s currently working, while people can still remember what has caused the problems.” Sensible prioritisation is another recurring theme: aim for the most significant improvements, not just the low-hanging fruit. “The right focus is everything,” warns Fraser Thomson, a consultant with Yorkshire-based manufacturing execution system provider Cimlogic. “What you often find is people focusing on problems that they think that they can fix, rather than on getting the biggest bang for their buck.” Finally, says Simon Allsop, northern European director at DELMIA, a subsidiary of specialist French manufacturing software company Dassault Systèmes, don’t underestimate the improvements available through training, and having consistent skills levels. “Look for those instances where some shifts, teams, or operatives consistently achieve a higher OEE on the same piece of equipment than other shifts, teams, or operatives,” he recommends. “That tells you it’s a skill issue—which can often be cheaper and easier to fix.”
Lighthouse Systems
IT in Manufacturing
Manufacturers can gain immense benefits from a plantcentric MES Tim Barber Lighthouse Systems
Battling ‘spreadsheet hell’, a manufacturer switches to a Manufacturing Execution System from Lighthouse Systems. By Malcolm Wheatley.
I
n late 2010, Sussex-based fuel cell manufacturer Ceres Power came to the conclusion that its spreadsheet-based quality management and work-in-progress tracking system was no longer meeting its needs. The problem? The company’s rapid growth, which meant it needed to capture, retain and share tens of thousands of spreadsheet records. “We were losing trust in spreadsheets,” explains Ananda MelloCosta, quality manager at Ceres. “We’d
Ananda MelloCosta, Quality Manager, Ceres
capture data, with people typing it in manually, and then discover that it was missing - perhaps through over-typing, or through computers being switched off without saving the spreadsheet.” Moreover, a system that relied on operators manually capturing and recording data had an inherent weakness in that critical observations could be missed. “All our products are serialised, and each order has to pass up to thirty quality checks,” explains Mello-Costa. “And if data hasn’t been properly recorded, it’s difficult to do the checks retrospectively. So we realised that we really needed some way of enforcing the data-capture process.” In short, Ceres came to the realisation that the route forward lay in a Manufacturing Execution System (MES) - a recognition which eventually led it to MES specialist Lighthouse Systems. “Manufacturers can gain immense benefits from a plant-centric MES,” notes Tim Barber, co founder and director of Lighthouse Systems. “It’s one system for all factory operations data, one place for all users to go, one version of the truth, and one system to learn, support and maintain.”
By mid-2011 Ceres had decided that Lighthouse was the best fit for its needs, and the new system duly went live in March 2012. And an important part of the implementation process, adds MelloCosta, was a training and communication programme aimed at keeping operators fully informed with progress. “They could see the need for an MES solution, and as they were the people who would be interacting with the MES on a daily basis, it made sense to involve them in issues such as how data was laid out on screens,” she explains. That said, the extent of such interaction would be less than with the manually-typed spreadsheet data - a key source of one of the efficiency improvements that Ceres has seen post-MES. “While there’s still some manual entering of data into the Lighthouse MES, we’re able to capture a lot of data through barcode scanners, or accessing it directly from our ERP system,” explains Mello-Costa. “So in terms of efficiency gains, there’s no longer so much time spent recording data and entering into spreadsheets and we’ve now got complete assurance that we’re capturing and retaining the data that we need.” Importantly, too, there have been efficiencies in how the captured information is used, both for reporting and in order to drive improvements. Formerly, she explains, it took half a day to collate and publish information from the business’s spreadsheets, which meant that the task was carried out just once a week. Now, the information is available on demand, meaning that it can be accessed every day. “Which means that we’re able to take corrective action in real time, immediately,” sums up Mello-Costa. “We’re no longer looking backwards, but operating at the speed of the business itself.” March 2015 | Issue 2 | Volume 18 | www.themanufacturer.com 71
Terry Scuoler - EEF
TALK OF THE INDUSTRY
Since publishing our UK Infrastructure Authority proposals, other organisations have also drawn a similar conclusion about the need to put the public front and centre of these debates
A public issue Currently the Government has a £466bn wishlist of infrastructure projects scoped out, the vast majority of which are still to get off the ground. Terry Scuoler thinks he might know why.
G
iven the importance of infrastructure to the UK’s economic growth, how can we end decades of dithering and deliver the vitally needed fit for purpose investment in major projects? One answer is to start at the very beginning by addressing how decisions on infrastructure projects are arrived at in the first instance, something Sir John Armitt has tried to do for the Labour Party, proposing a National Infrastructure Commission. This would aim to clear up the current situation where there is a clear lack of transparency with which infrastructure priorities are identified, with Whitehall and the government of the day, of whichever colour, taking and implementing decisions without due regard to the real needs of business and the wider UK economy. EEF has also raised concerns, outlined in a recent consultation, at the level of influence the Treasury and the government of the day has in the overall process. Despite the best intentions, however, Sir John’s proposed structure would result in both the Commission and its main output (a National Infrastructure
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Assessment) being independent of government in name only. The Commission would still be appointed by the government of the day and be directed by the Chancellor of the Exchequer, who would also take the output of the National Infrastructure Commission and amend it as they see fit. This does little to forge crossparty consensus. In contrast, currently it is much less likely for the Government to amend the outputs of other independent bodies such as the Committee on Climate Change, the Office for Budget Responsibility or the Office for National Statistics – precisely because such an amendment would fundamentally undermine that output.
Our analysis of the issue, undertaken as part of the development of our own UK Infrastructure Authority proposals, identified that the key issue holding back the tackling of infrastructure challenges in a timely manner was the public mistrust in any analysis presented by the machinery of Government. In his own proposals there was a recognition by Sir John that most responses to the consultation stressed the theme of public consultation being a fundamental part of the entire process and a “critical success factor”. The revised proposal, however, does little to address some of those concerns. That is why I believe the only way to overcome this issue is to establish a process which results in a strategic assessment of infrastructure needs. One which is open, involves the public and which maintains both the assessment and its interpretation independently of government. This would not only create robust evidence on which a more streamlined political and public debate can take place, but would also create a process trusted by political parties and other players. Such a process would also help to refocus the debate on how best to meet our infrastructure challenges, as opposed to whether or not the challenge has been dreamt up in pursuit of a “vanity project” or undue special pleading. Debates about infrastructure cover broad issues such as land use planning, financing and funding. This debate should not take place behind closed doors. Since publishing our UK Infrastructure Authority proposals, other organisations have also drawn a similar conclusion about the need to put the public front and centre of these debates. We will continue to make the case to all political parties of the need to establish a UK Infrastructure Authority which does just that.
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