TM May 2015

FEATURE Up to speed Just what is the Bloodhound SSC team up to now?

INTERVIEW The man behind the desk One on one with Autodesk CEO, Carl Bass

WORKFORCE AND SKILLS The Kids aren’t alright Are parents to blame for kids not aspiring to engineer?

OPINION A manifesto for UK manufacturing What do we really need to grow?

MANUFACTURING SERVICES

Visionary, diplomat, engineer

Thinking differently Service thinking; is it the saviour we need?

In partnership with:

sector focus Chemical elements Is the UK chemical sector still the economic powerhouse it once was?

www.themanufacturer.com | May 2015 | Vol 18 Issue 4

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Welcome

EDITOR’S INTRODUCTION

This manufacturing game – it’s an interesting sector to cover. The advancements in technology, the (mostly) streamline business models, the complex designs and research, and the engineers. Yes, the engineers.

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Stereotypically, engineers aren’t the most charismatic bunch. And they have never had to be. They are problem solvers. Many of them, particularly in the UK have brilliant minds and are capable of thinking about complex situations on a level I only wish to someday mimic. It can be intimidating when speaking to these individuals, and although on a one-toone basis, the majority are extremely welcoming and, above all, enlightening, I will be the first to admit that a lot of the comprehensive, technical discussions can go flying straight over my thinning crown.

These kinds of interactions, which I encounter as part of my role on a regular basis, had me thinking again recently while listening to one of my favourite podcasts, Freakonomics, while partaking in the daily commute.

Its host, Stephen Dubner was interviewing MASH star Alan Alda about the institute he established at Stony Brook University in the United Sates – the Alan Alda Centre for Communication (http://bit.ly/AldaInstitute).

The basic remit of the centre, according to its website, is to “enhance understanding of science by helping train the next generation of scientists and health professionals to communicate more effectively with the public, public officials, the media, and others outside their own discipline.”

Basically, they want people who do amazing things to be able to explain to normal folk (such as myself), what they are doing in clear, simple terms.

’s Editor Callum Bentley speaks with Professor Lord Bhattacharyya. P38

something slightly similar – The Top 100. The Manufacturer Top 100 is a list of the UK’s most inspiring individuals in manufacturing, as identified by our readers, the wider industrial community and the public.

The project aims to dispel myths surrounding manufacturing and create a platform to publicly identify dynamic leaders and innovators in the sector.

Shortlisted individuals are nominated by you, our readers, the wider industrial community and the public, for their contributions in changing the face of industry; finding new markets; making marked investment in people, processes and customers; and for those making an impact disproportionate to their years.

The report is not ranked as it is intended to champion individuals in the sector rather than pit them against one another.

I encourage all of you to nominate those people who you work with, who you believe are or can be a true role model for the future of UK manufacturing. You can nominate online at http://bit.ly/Top100TM until July 31st 2015.

This, I think, is a great idea and perhaps something that could also transfer across to the engineering profession. If we are constantly calling for more engineers to engage with a broader audience to promote the industry, then surely training them to do so would be a pretty good start.

Happy reading.

At The Manufacturer last year, we kicked off our first attempt at driving

Callum Bentley Editor May 2015 | Issue 4 | 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 | May 2015 | Issue 4| 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

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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 Deputy 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

4

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Marketing Director Kate Birinder k.birinder@hennikgroup.com

Telesales Manager Deborah Sowman d.sowman@hennikgroup.com

Awards Manager Laura Williams l.williams@hennikgroup.com

In order to receive your monthly copy of kindly email subscriptions@hennikgroup.com, telephone 0207 401 6033 or write to the address below. Neither The Manufacturer nor Hennik Research can accept responsibilty for omissions or errors.

Terms and Conditions Please note that points of view expressed in articles by contributing writers and in advertisements included in this journal do not necessarily represent those of the publishers. Whilst every effort is made to ensure the accuracy of the information contained in the journal, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrieval system or transmitted in any form or by any means without prior written consent of the publishers.

The Manufacturer in partnership with EEF, the manufacturers’ organisation.

Working together to secure the future of manufacturing.

Elizabeth House, Block 2, Part 5th Floor, 39 York Road, London, SE1 7NQ Tel: +44 (0)207 401 6033 Fax: +44 (0)844 854 1010

s.hough@hennikgroup.com

EEF is dedicated to the future of manufacturing.

Everything we do is designed to help modern manufacturing businesses evolve, innovate and compete in a fast-changing world. www.eef.org.uk

The Manufacturer is working collaboratively to drive innovation and manufacturing excellence in the UK. Our partnerships with leading industrial research centres, further education providers and trade bodies is an important part of this and is distributed directly to the alumni and membership of the following organisations:

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May 2015

08 News and regular columns A summary of manufacturing news and events with commentary on industrial research and policy 22 Out & About heads to Allied Bakeries to hear why it has some of the most modern bakeries in the world, as well as, JLR to celebrate the start of production on the new Jaguar XE 24 Best of Online What you wanted to read most about from ’s website in April 28 Special Feature: The man behind the desk Jonny Williamson catches up with Carl Bass, Autodesk CEO, to find out what makes the big boss tick 32 Sector Focus: Chemical elements Ruari McCallion assesses why the UK chemical industry is the second largest manufacturing sector in the country 38 Interview: Eyes on the road Editor Callum Bentley, sits down with UK engineering royalty, Professor Lord Kumar Bhattacharyya 42 60 second interview Dr Julie Madigan, CEO, The Manufacturing Institute

Pillar features Manufacturing Leadership 47 The chemistry behind innovation: John ContiRamsden, Director of the Knowledge Centre for Materials Chemistry tells Jonny Williamson how connections between research and industry are driving advancements in the sector

Workforce & Skills 49 Employee of the Month: Brian Warwick, Technical and Product Development Manager, Applied Component Technology 50 Engendering the future: Victoria Fitzgerald explores the truth behind IET research that claims parents are preventing their daughters entering STEM careers

Energy 54 Power to change: Hear how Foleshill Plating boosted its production capacity with a little help from E.ON

Finance & Professional Services 56 Unlocking potential: Mark Bryant, Head of Manufacturing at Business Growth Fund explains how good manufacturing businesses are being propelled into greatness

6 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

CONTENTS

Manufacturing Services 59 Service thinking: Nick Frank reveals why service thinking is key to boosting business growth

IT in Manufacturing 68 Concocting success: Vickers Laboratories divulges why Exel was the perfect fit when choosing an IT system in the hazardous chemicals domain 70 SaaS-ifying the supply chain: Jez Tongue of @logistics Reply shares why cloud computing presents a new prospects for supply chain operations 84 Talk of the Industry: Terry Scuoler reveals why the next government, which ever party it may be, should not fix what isn’t broken

Product sponsors of Bloodhound SSC Discover the full story at builttolast.bottltd.co.uk

NEWS

www.themanufacturer.com/news

Special Focus Rolls-Royce Aerospace Rolls-Royce Aerospace is flying high in 2015 with record orders, new customers and several industry awards for its trophy cabinet.

The RollsRoyce Trent 900 powers the Airbus A380 (image courtesy of Rolls-Royce)

W

e’re not even halfway through the year and already the manufacturer’s aerospace division has plenty to shout about.

The year got off to a solid start with Indonesian airline, Lion Air placing its first Rolls-Royce order for Trent 700 engines to power its three new Airbus A330ceo aircraft. UK Foreign Secretary, Philip Hammond described the £90m deal as “good news for British manufacturing and a testament to the quality of our engineers.”

The booming aviation industry across Asia is heralding a number of lucrative contracts for the British aerospace marque, with Air China selecting Rolls-Royce’s Trent 1000 engines in March to drive its 15 new B787-9 Dreamliners.

The decision continued a strong relationship between the manufacturer and airline, which already operate 50 Trent 700-powered Airbus A330 aircraft, and 10 Trent XWB-powered Airbus A350XWB on order.

In April, Rolls-Royce was recognised

by Boeing as a Supplier of the Year – one of only 14 companies and one university to be honoured for distinguished performance by the American aviation giant.

Having already bestowed a Performance Excellence Award on Rolls-Royce in January, Boeing’s leader for supplier management noted that the company is facing “an increasingly competitive landscape,” so needs “supplier partners like Rolls-Royce who understand the importance of creating a sustainable competitive advantage.”

April also saw Rolls-Royce win its largest ever order to provide Trent 900 engines and TotalCare service support

8 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

John Rishton has declared that he will be stepping down as Rolls-Royce chief executive, as of the beginning of July 2015. Following an international search for a suitable replacement, chairman of RollsRoyce, Ian Davis announced that Warren East would be filling Rishton’s shoes.

East oversaw Arm Holdings as CEO from 2001 to 2013, and has served as a non-executive director at RollsRoyce since January 2014.

to Emirates, worth £6.1bn at current list prices.

The 200 engines will power 50 Airbus A380s, an aircraft which has become synonymous with the UAE flag carrier. Emirates’ latest decision has confirmed the Trent 900 as the engine of choice on the four-engine A380, securing more than 50% market share and chosen by the majority of A380 customers.

Rolls-Royce CEO, John Rishton commented that the company was proud to have been a part of Emirates’ success over the past 30 years, having partnered with the airline since 1996.

The continuing success of RollsRoyce aerospace however would appear to be at odds with the company’s announcement towards the end of 2014, with news that its global workforce would be cut by 2,600 during 2015 – with aerospace being particularly hard hit.

Warren East, non-executive director, RollsRoyce

Citing an increased commitment to the “4Cs – customer, concentration, cost and cash”, Rolls-Royce stated that it will continue to pursue further “cost improvements in all areas.”

Adding, “A large engineering team was required for the development phase of the Trent 100 and Trent XWB engines,” with both of these projects having now entered production, its “engineering requirement” had been reduced accordingly.

MANUFACTURING NEWS

ANNOUNCEMENTS

EEF name Mike Turner CBE – chairman of GKN and Babcock International Group – as its Industrialist of the Year. The prestigious award was given in recognition of Turner’s outstanding contribution as a highly successful business leader and manufacturing champion.

As Chairman of two of the country’s largest industrial and global players, he’s been at the forefront of the revival in the UK’s manufacturing sector. He is past president of the Society of British Aerospace Companies and the Aerospace and Defence Industries Association of Europe, as well as a member of the UK Government’s Apprenticeship Ambassadors Network. Turner received a CBE for services to the aerospace industry in 1999.

Use of helium for entertainment and amusement called into question. Due to it being one of the few elements that escapes gravity and leaks into space, helium’s relative rarity on Earth and potential to one day run out has put paid to the notion that it should be used for such frivolous purposes. Helium is of key importance for the superconducting magnets used in MRI scanners, due to it having the lowest boiling point of any element (-269°C). About 120 tonnes of liquid helium is also used at the Large Hadron Collider (LHC) to keep its superconducting systems at a chilly 1.9 K (1.9° above absolute zero).

APPOINTMENTS

To date, more than 260 companies have engaged with the Science Industry Partnership.

WORKFORCE & SKILLS

Science Industry Partnership celebrates successful first year. The science industries’ £52m skills and talent initiative surpassed 2,000 new people being trained as the initiative reached its first anniversary in April. Over 260 companies have engaged with the programme to date, undertaking recruitment, training and new talent development programmes co-funded through the partnership and delivered through Cogent Skills’ range of delivery services including apprenticeships, placements and training courses. Its board – led by GlaxoSmithKline, along with representatives from other leading science sector companies – is now urging organisations not yet participating in the employer-led skills initiative to start the process in this new financial year.

John Pearce has been appointed CEO of the Made in Britain Campaign. Pearce joins from the GREAT Britain campaign, the Government’s overseas business, tourism and education initiative, having worked with some of the UK’s most prestigious export brands like Triumph Motorcycles; JCB; Jaguar Land Rover, and Pashley Bicycles.

The Made in Britain Campaign is the UK’s only member-funded organisation offering all British manufacturers in all sectors a simple Country of Origin marque to encourage consumers and trade buyers to purchase British-made products.

COMPANY INVESTMENT

Steelite International dines out on recordbreaking success. The British tableware manufacturer achieved record sales of £94m in 2014, with all of its global markers performing well including Europe, North America and the Middle East. The milestone figures follow a year of investment, which has led to new products, an increased workforce and a clear vision for the future. The past year saw manufacturing expansion plans continue with the commissioning of a new 2,000 sqm factory extension at its Stoke factory, enabling the business to continue to meet the increasing demand for product.

Anglo-Indian partnership sees British frim expand operations. Automotive component manufacturer, The Autins Group has extended its range of products and operations by setting up a joint venture with Indian manufacturer, Indica Industries. The new partnership – resulting in Indica Automotive – will enable the company to make parts for the automotive supply chain in both the UK and India for distribution across the world. Indica Automotive is currently working within the Autins Group’s new 65,000 sq ft factory with plans to relocate to a new site nearby as the company expands in the future.

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 9

NEWS www.themanufacturer.com/news

MANUFACTURING NEWS

The aim is to produce biobased chemicals from lignin, a widely abundant waste product of the pulp and paper industry

ENVIRONMENT

Biome Bioplastics leads £3m sustainable chemicals initiative. The leading consortium hopes to progress successful bio-based chemicals research through to industrial scale production. One such aim involves harnessing industrial biotechnology techniques to produce bio-based chemicals from lignin – a widely abundant waste product of the pulp and paper industry – at a scale suitable for industrial testing. Scientists have been trying to commoditize lignin for more than 30 years. Last year, Biome Bioplastics and the University of Warwick’s Centre for Industrial Biotechnology and Biorefining successfully demonstrated that bacterial degradation can be used to produce organic chemicals from lignin that are suitable for bioplastic manufacture.

Enthuse young people to take up vital careers in engineering

Follow us on

ANNOUNCEMENTS SPI Lasers acquires counterpart JK Lasers for £21.3m. With almost 100 employees and annual sales of €17.6m, West Midlands-based JK Lasers is one of the world’s leading manufacturing of high-powered fiber lasers for industrial use. The acquisition will see JK Lasers, its products, offices and an additional 42,000 sq ft of floor space incorporated under the single brand of SPI Lasers, with its Rugby site continuing to operate as an additional production, development and customer service centre for fiber lasers and optical components.

The expanded product range will see SPI Lasers move into the field of multi kW systems, as well as utilising a number of additional JK Lasers products to enhance their levels of vertical integration.

With not enough young people taking Science, Technology, Engineering and Mathematics (STEM) at further education, many UK companies are facing a skills shortage.

Independent, educational charity, The Smallpeice Trust is passionate about closing this skills gap and enthusing the next generation of engineers. Working in partnership with some of industry’s leading organisations, we offer students an engaging, hands-on introduction to the rewarding careers available to them.

From sponsoring STEM Days and Clubs, to mini competitions and residential courses, there are many ways in which your company can get involved with The Smallpeice Trust. To find out more about the benefits of being a Smallpeice Partner, contact our Chief Executive, Dr. Kevin P Stenson on 07899 663 280 or email kevins@smallpeicetrust.org.uk.

&

www.smallpeicetrust.org.uk 10 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

Big things happen with The Smallpeice Trust

Manufacturing Services Thought Leadership Network [MSTLN]

Raising awareness, in UK manufacturing, that ensuring long term success requires companies to increasingly focus on creating value in the customers’ business, rather than exclusively in the production facility or R&D lab.

Benefit from: Networking Q & As Articles Insight Case studies

Becoming a member is easy. Simply visit www.mstln.co.uk to register* and start communicating with like-minded manufacturers today.

Register now: www.mstln.co.uk | 020 3397 4930 * In order to ensure you are a qualifying company, registration will be checked and once approved you will be sent log in details

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NEWS www.themanufacturer.com/news

ECONOMY

The UK motorcycle industry contributes billions to the economy.

A recent report by the Motorcycle Industry Association (MIA) has calculated that around £5.3bn is generated through net annual sales, with an added value of £2bn. The industry directly employs 58,500 people in 5,700 companies, plus an additional 16,400 jobs through motorcycle businesses purchasing goods and services from other UK sectors. Upwards of 3,000 people in the UK are employed in the manufacture of high quality motorcycles; components; clothing; accessories, and fuel. The report also establishes that the industry pays more than £1bn in tax and exports about £450m annually.

TECHNOLOGY

FANUC unveils a world first collaborative heavy lifting robot.

The global manufacturer of factory automation and industrial robotics has launched the CR-35iA, capable of working hand-in-hand with human employees. The collaborative robot uses integrated vision technology – iRVision – to ensure safety by automatically stopping when the robot touches a human operator. This removes the need for safety fences, a previous requirement for all industrial robots, increasing production efficiencies and enabling a higher level of automation. Servicing a variety of manufacturing industries, the CR-35iA can perform both simple and complex tasks and is able to lift payloads of up to 35kg.

D30 has secured £13m in funding which it plans to use towards international market growth

COMPANY INVESTMENT

D30 secures £13m in new funding. The UK-based smart materials company will reportedly use the investment to support further expansion of the company’s impact protection products and international market growth. New facilities will include an innovation and development centre in the UK, which will be the global knowledge hub of the company.US expansion will include a new sales and marketing office, and in Asia D3O will open a dedicated testing and production facility for greater proximity to its Asian customers. Recently, the firm introduced significant enhancements for safety in the oil and gas industry, with the introduction of a new flexible, comfortable and protective glove design, and has changed the face of protection for American football with a new helmet liner system designed to reduce brain trauma.

Queens Awards bowl outside Buckingham Palace

WORKFORCE & SKILLS

Metcalfe Catering Equipment secures jobs. The Welsh firm has been given the go-ahead to expand in a move that retains jobs in a Welsh town. Established in 1928, the fourth generation family-run business has grown to become one of the UK’s premier manufacturers and suppliers of commercial food preparation equipment.

Based in Blaenau Ffestiniog for more than 60 years and with the distribution side of the company booming, Metcalfe needed a warehouse to meet increased demand. Metcalfe warned that failure to secure the planning green light could see it forced to relocate its workforce. Now planning permission has been granted

by Gwynedd council and work is underway.

12 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

AWARDS

Queen’s Award for Enterprise winners revealed. The Department of Business, Innovation and Skills has announced the 141 recipients for this year’s awards, all of which are leading the way in international trade, innovation and sustainable development across automotive manufacturing, education, software design and fashion. Winners included JLR; Brompton Bicycle; Renishaw; Ancon; Accuracy International; Wavestore Ltd; SpiraxSarco Engineering; Grey Technology; Hallmarq Veterinary Imaging Ltd, and T A Savery. The Queen’s Awards scheme is regarded as among the most prestigious business awards and 2015 marks its 50th anniversary.

MANUFACTURING NEWS

COMPANY INVESTMENT

Merseyside firm, Sovex expands to US market. The rapidly-growing manufacturer of more than 30 varieties of vehicle loaders and transport conveyor systems is targeting the booming multi-billion dollar e-commerce and parcel handling markets. Founder and chairman, David Lindfield said the company had driven turnover to more than £24m since setting up in 2002. However, he believes the US retail e-commerce market – estimated to be worth more than $340bn and expanding quickly – holds the key to further growth. The firm has a 50,000 sq ft UK-based factory, with more than 160 employees, and has previously been named as the fastest growing firm in Merseyside.

James Briggs paint a picture of success with £125K investment.

The firm, one of the largest manufacturers of aerosol and consumer chemicals in Europe, has continued to fuel its growth story by investing in new manufacturing equipment. The Oldham-based business, which invested more than £200,000 in new machinery and facilities last years, will use the capital to strengthen its position in the aerosol paint market through a major upgrade to its bulk paint blending operation.

This includes the installation of sealed holding tanks, as well as improvements to the supporting infrastructure and pipework.

ANNOUNCEMENTS

Subsidiary of China South Rail buys UK maritime engineering firm, Specialist Machine Developments.

It’s believed Zhouzou CSR Times Electric paid £130m for the Tyneside firm, which makes remotely operated underwater vehicles, many of which are used in underwater mining. CSR president, Liu Hualong commented that the acquisition would help SMD expand its operations and unlock further global opportunities. The company currently exports to 30 countries, with a new Chinese subsidiary being established to help gain a strong foothold in the Chinese maritime market. The move comes after Zhouzou CSR Times Electric previously made its intentions clear to diversify its strategy and expand beyond just high-speed rail.

MAY

Dates for your diary

23-24

Global Manufacturing Festival: Sheffield. Held at the University of Sheffield’s building, The Diamond, the festival is set to be Britain’s biggest specialist manufacturing event in 2015, the GMF is a unique opportunity for smaller businesses to understand what’s coming next and how to sell into global markets.

Its aim is to help SMEs to understand the supply chains for a broad range of high growth market sectors, how they might access them, and where to focus investments to gain future business. www.globalmanufacturingfestival.com

JUNE

2-4

Subcon: Birmingham. Held at the NEC Birmingham, Subcon focuses on contract and subcontract manufacturing, including machining, moulding, fabrication, electronics assembly, casting and forging, finishing and treatments. Subcon aoffers access to global markets, with many overseas countries being represented in 2015, including; Spain, Italy, Portugal, Denmark, Sweden, Hungary, Greece, Latvia, Czech Rep, India, Taiwan, China and the USA. For the first time in 2015, Subcon, The Advanced Manufacturing Show and The Engineer Design & Innovation Show will be coming together to deliver a compelling platform for the manufacturing industry. www.subconshow.co.uk

16-18

International Institute of Obsolescence Management Conference & Exhibition. The 1st IIOM Conference will be held in Edinburgh. The main conference and exhibition will be held in the Assembly Rooms, an iconic building in the heart of Edinburgh’s new town. This conference is the first to showcase the IIOM and to position the institute as the organisation to represent Obsolescence Management practitioners worldwide. Practitioners from all aspects of the supply chain and across all sectors are strongly encouraged to participate including Obsolescence Practitioners, Design Engineers, Procurement Personnel and Suppliers. www.regonline.co.uk/builder/site/tab2.aspx?EventID=1584151

JULY

10-12

Formula Student 2015: Silverstone Circuit. Held at Silverstone, Formula Student (FS) is Europe’s most established educational motorsport competition, run by the Institution of Mechanical Engineers. Backed by industry and high profile engineers such as our Patron Ross Brawn OBE, the competition aims to inspire and develop enterprising and innovative young engineers. Universities from across the globe are challenged to design and build a single-seat racing car in order to compete in static and dynamic events, which demonstrate their understanding and test the performance of the vehicle. Find out what is involved in the challenge. http://events.imeche.org/ViewEvent?code=FS6239

September Food Safety Conference: Safer food and drink - from the harvest to

29

the home: Manchester. Taking place at the Lawry in Manchester, Food Manufacture’s 2015 food safety conference will take a whole supply chain look at food safety and integrity. It will investigate the latest developments to ensure food safety from the farm, through manufacture and the supply chain, to products and packaging on sale. It will also discuss what more the industry can do to reassure consumers about the safety and authenticity of the food they eat.

The one-day conference is targeted at practitioners in the food and drink supply chain who are involved with food safety: from operations and technical managers to regulatory specialists; and from new product developers to food hygiene managers in manufacturing, retail and foodservice. www.foodmanufacture.co.uk/ Events/Food-Safety-Conference-Safer-food-and-drink-from-the-harvest-to-the-home

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 13

FOR THE DIARY

Upcoming Events REFER TO ‘EVENTS’ ON OUR WEBSITE FOR FULL DETAILS: themanufacturer.com/ events

Factory Tour: Xtrac 9 June 2015, Berkshire Xtrac are worldwide leaders in design and manufacturing of the transmission system, and triple winners of The Manufacturer Awards. In 2014, they won The Manufacturer of the Year, Leadership and Strategy and Medium Sized Enterprise of the Year awards.

You are invited to learn from the leading manufacturer by attending this unique factory tour.

Innovate 24 June 2015, Birmingham Innovation of your products and services is at the core of creating and sustaining competitive advantage as well as business growth. It is essential for the future of your company to overcome challenges within research and development to maintain a strong market position. The Innovate seminar will inspire creative thinking for growth through case studies from SME’s and OEM’s and show how you can innovate processes, techniques and products to remain competitive in the global market. themanufacturer.com/innovate #Innovate

themanufacturer.com/factory-tours #TMFactoryTours

Unlocking Finance

The Manufacturer MX Awards 2015- Entry Deadline

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10 June 2015, London

30 June 2015

14 May 2015, Reading

The Manufacturer Unlocking Finance Seminar will offer manufacturerled guidance on the full spectrum of financing options available to you. Explore mainstream and nonmainstream financing options, how innovation grants can multiply your growth, the knowledge infrastructure for accessing finance and how the right export strategy can take your business to the next level. This event will provide you with the ideal starting platform if you are looking to export, innovate, enter a new supply chain, or explore crowdfunding possibilities.

The Manufacturer MX Awards are dedicated to encouraging and promoting competitive manufacturing in the UK, and celebrating the very best in the industry annually. With a range of categories tailored to suit manufacturing businesses of all sizes and sectors, these awards provide the opportunity to gain valuable business improvement advice. As well as industry-wide recognition for your achievements, your employees and your business.

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

themanufacturer.com/ unlocking-finance #TMFinance

Factory Tour: Philips Avent

themanufacturer.com/awards #TMMXAwards

The 6th Annual LMJ European Conference

21 May 2015, Suffolk

Connect MES

Philips AVENT have 30 years of experience and have previously won the World Class Manufacturing award. The company has successfully automated continuous flow production lines, have implemented lean throughout their whole company, and are now working to progress beyond Phase 4. The factory tour will allow you to learn more about Philips AVENT’s award winning factory site, as well as, the impressive lean journey they have embarked on.

17 June 2015, Birmingham 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.

The annual flagship event will capture a year’s worth of thoughts, ideas and best practices reported on by the journal. The conference will focus on the key ingredients and considerations that transform operations and instil game changing efficiency improvements. You are invited to listen and learn from key topics including; workforce engagement, cross company implementation and lean in a changing environment.

themanufacturer.com/factory-tours #TMFactoryTours

mesconnect.co.uk #MESConnect

lmjannualconference.com #LMJAC

14 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

8-9 July 2015, Amsterdam

APPOINTMENTS

Laura Nelson

RTITB

Laura Nelson has been appointed managing director of the UK and Ireland’s largest workplace transport training accrediting body, Driver CPC Consortium,

Jim Bishop

RTITB, following more than nine years of service. Laura has been operations director since 2010 and has studied business growth and development at

Cranfield School of Management. Her qualifications include a Certificate of Professional Competence in National Road Haulage and ISO9001 Lead Auditor.

partnership agreement with Britain’s largest sawmilling business BSW, a multi-million pound joint investment with Forth Ports Ltd to regenerate the Port of Burntisland as a pallet manufacturing

facility, and continuous investment in growth of Scott Group in the UK and overseas.

Scott Group

Scott Group, has appointed Jim Bishop as non-executive chairman as part of plans for expansion in 2015. The group recorded a successful 2014, including the development of a five year

Laura Bawden and Greg Smith Manufacturer of acoustic components for industrial and agricultural vehicles, TMAT, has appointed a new board following its purchase by Blachford Acoustics Group. Managing director, Jason Lippitt, is joined by financial director Laura Bawden and sales director Greg Smith.

Ed Stubbs and Shaun Khan

TMAT

Laura Bawden joined TMAT in 2006 and has demonstrated a real feel for the business and an ability to make key decisions, she will lead on strategic direction, management and performance of finance, IT and HR functions at TMAT. Greg Smith joined TMAT in 2011 and combines

a diverse understanding of materials and manufacturing processes with extensive B2B sales experience. Greg is now responsible for managing the sales and marketing functions of the business and building a cohesive and talented commercial team.

Gripple

At the tender age of 32, Ed Stubbs has been appointed managing director of Gripple, manufacturer of the iconic wire fastener. He was transferred from the same role at its sister company, Loadhog, the transit packaging innovator. Sheffield-born Stubbs’ career with the group started at Gripple’s base in the United States and in 2005 he “came home” and joined Loadhog

as a product manager. Just four years later Stubbs was appointed its general manager and in 2010 his climb up the Gripple family ladder continued when he became managing director of Loadhog.

Shaun Khan, aged 39, has been moved into the top position as general manager at Loadhog after setting up and running a Gripple operation in India, which continues to thrive under

Paul Pritchard - David Nieper Paul Prichard has joined the board of British fashion house, David Nieper, as a non-executive director. Pritchard was instrumental in establishing the JCB Academy, the UK’s first University Technical College. As well as his recent appointment to the David Nieper board, Paul will act as an advisor and mentor to staff, to help ensure that personal development, learning and skills remains at the forefront of David Nieper’s success. Paul has retained his vice chair of governor’s position at the JCB Academy, after heading up the JCB Academy since it was founded.

new leadership. In 2003 Khan started at Gripple Limited’s headquarters as a product manager. He progressed in 2007 to become a sales manager, covering Middle East Asia. He moved with his family to New Delhi in 2010 to establish as general manager at a Gripple base aimed at developing the promising market, again for the company’s range of construction products.

Tim Pugh – James Briggs James Briggs Ltd, manufacturers of aerosol and consumer chemicals in Europe, has announced Tim Pugh as CEO. Tim joins the business with a wealth of international experience in the automotive and the chemical coatings sectors, having spent time in an array of senior positions at Scania Group, RAC and automotive refinish products business U-POL Ltd.

To notify The Manufacturer of your company’s appointments, please contact Victoria Fitzgerald at: v.fitzgerald@hennikgroup.com or: 0207 401 6033

16 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

What’s your relationship with ERP?

Engaged Still Looking

It’s Inspiring In a Relationship It’s Complicated

ERP should inspire your business, not complicate it.

Update your status. Epicor ERP is built to bring out the best in you and your business. www.epicor.com/uk/compatibility

Questions? Contact us at: Phone 01344 468 468 E-mail ukmarketing@epicor.com Copyright © 2014. Epicor Software Corporation. Epicor, the Epicor logo, and Business Inspired are registered trademarks of Epicor Software Corporation.

Legally MIND minded THE GAP & DIGITALLY MADE

LEGALLY minded.

Digitally Made.

The carrot and the stick

A manufacturer’s guide to hashtags

Strategies to attract and retain a skilled workforce are imperative, however, employers must ensure their tactics are aligned with their goals. Lisa Gettins, Equity Partner, Employment at BPE Solicitors LLP explains.

T

he manufacturing industry has a skills shortage. This is a fact that is well researched, well documented and being acted upon. However, in the short term it means employers find themselves with an increasing need to retain key staff and attract new ones in a very competitive marketplace. Can incentives play a part in helping to do this?

Too many businesses embark on employee reward initiatives which are costly, without first considering the key questions of what they want to achieve, who they want to retain and how best to do it in their business There are many options and questions to consider. It may be that certain groups of staff can and should be incentivised but others not, as they are less in demand, but does that solve one problem and create another group of demotivated employees? Will one strategy work for all? It can be more effective to introduce different rewards for different levels.

Can you afford to motivate all financially? What are your competitors doing? Once the internal need is assessed, external benchmarking is key.

Financial rewards vary greatly, from bonus schemes to employee share schemes. The latter can be used highly effectively as a means of retaining and motivating employees.

They also align the interests of employees with shareholders and can reduce employment costs through use of structures which attract valuable tax reliefs. They can be introduced for all levels of employee but are particularly attractive for senior and skilled staff.

It may be that something as simple as committing to the living wage, not the national minimum wage, which attracts and retains the workforce you are looking for. The current NMW rate is £6.50 per hour, whilst the living wage costs are £7.85 per hour outside of London, and £9.15 within London.

Non-financial benefits should be assessed carefully. You need to consider what is going to motivate your employees and future workforce. Changes to employee benefits leave can be attractive depending on the type and profile of employee you are looking to recruit. However, will such benefits attract and retain the staff you need?

Before putting any incentives into place you should also consider your communications strategy. There is little point investing time into a reward strategy if you don’t communicate it to your workforce and any potential future employees.

18 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

S

peaking with the operations director of a medium-sized manufacturer about using social media, I was asked the following, “Everyone says that we should be using the primary social networks, certainly the marketing departments, but how do we actually realise business value from this activity?”

I sensed that the current struggle is in actually determining which networks deliver the best value and which ones are best to ignore. The answer of course depends on a variety of factors.

I believe manufacturers of all sizes as a minimum should definitely consider a presence on at least LinkedIn, Twitter, Facebook and Google+/YouTube.

You would be surprised at the amount of coverage and reach your brand can be exposed to if your marketing included the use of hashtags.

The humble hashtag began on Twitter in 2007, but was then quickly adopted by other social networks. As I write this article, #energy is currently generating 100,000 messages, created by a 46,000 authors within a reach of 111.7 million people.

Certainly quite a crowded space, but it is possible to drill down and identify conversations that are specific to your niche. For example, Solar specialists using #solar would be able to engage with 6000 authors generating content that could be seen by 14 million people.

When using hashtags you want to keep them short and concise leaving no punctuation and spaces.

Google+ automatic adds the relevant hashtags to your updates which you can then edit. Google search places high emphasis on Google+ hashtags within search results.

Twitter is also user-friendly by displaying trends located in your left sidebar with a list of hashtags that you may be interested in. You can use Twitter’s filters to generate hashtags based on the people that you are following, useful for monitoring the competition. One to two hashtags in a tweet average a 21% engagement rate, include more than two hashtags and your engagement drops by 17%.

On Facebook use of hashtags are on the increase with 10 or more hashtags averaging 188 post interactions. Facebook #searches are not limited solely to people in your network. For the ultimate guide read this resource: http://bit.ly/1Cwa0R7

MOBILITY HAS CHANGED THE BOUNDARIES OF ERP. Harness the potential of mobility to reconfigure core business processes, automate routines and bring new levels of flexibility to the industrial manufacturing workforce. Go beyond ‘business as usual’ and engage with customers and suppliers at a new and more rewarding level.

FOR AGILE BUSINESS

MOBILITY.IFSWORLD.COM

Letters to the editor

Production lines

Letters to the Editor

Manufacturing in Parliament This month’s letter to the editor is a collaboration from Barry Sheerman, Labour PPC for Huddersfield, and Chris White, Conservative PPC for Warwick and Leamington, both former Co-Chairs, All-Party Parliamentary Manufacturing Group.

Manufacturing has come a long way over the past five years. It has grown and become more resilient since the financial crash, and is well on its way to recovering completely, as entrepreneurial businesses succeed at doing more with less. There has been a flurry of investment, not least in the automotive sector that broke production records in 2014. More companies are reshoring every day, and overall confidence remains high among manufacturing businesses.

The progress that manufacturing has made at the policy-making level has been equally impressive. Whereas at the start of the previous Parliament several of our colleagues had limited interest in the sector and its importance, and even sometimes questioned the need for an All-Party Parliamentary Manufacturing Group (APMG), there has been a sea change in the way manufacturing is perceived amongst Parliamentarians.

Discussed almost every single day in both Houses, there emerged an established recognition that manufacturing is a crucial part of a well-balanced economy, and deserves the respect, attention and support of

20 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

Government. Manufacturing was placed firmly back onto the political agenda.

This was achieved in no small part by the APMG, formed in early 2011 in order to establish cross-party support for manufacturing and help grow and strengthen the sector. Embedding productive and robust industrial policy for the long-term was inherent in all the APMG did, based on the reality that investment cycles and strategic plans of most manufacturing businesses can span several years and even decades.

That is why we published a Manufacturing Manifesto before the General Election, calling on all political parties to make substantial longterm commitments to the sector, be it in support for innovation and R&D, addressing the skills gap and gender imbalance, facilitating investment and finance, or tackling the pernicious high cost of energy.

On the campaign trail, many candidates will rightly have been talking up manufacturing, and the APMG will be formally reconstituted after the May 7th, potentially with your own MP becoming a member. Regardless of which party is in Government, we are

confident the Group will carry on the positive work of casting a critical eye on existing policy, making evidencebased recommendations to improve it, and communicating the importance of a resilient manufacturing sector to Parliamentarians and the public.

This work is informed and made possible by regular valuable contact and contributions from non-parliamentary members of the APMG, which have included large and small businesses, trade federations, financial companies, consultancies, academic and professional institutions, research foundations, innovation centres, and labour organisations. Membership is open to all, and all members are represented equally regardless of size or industry.

The APMG will continue to be administered to the highest standard by the non-profit organisation Policy Connect, the leading network of Parliamentary groups, research commissions, forums and campaigns working to inform and improve UK public policy. With your help, it can continue to drive forward the march of the makers, and see manufacturing flourish in the country for a long time to come.

The role of...

...in manufacturing

Produced by The Manufacturer in association with Microsoft Read the full report:

www.iotmanufacturingreport.co.uk

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 21

’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 April.

Bread of heaven

I

Victoria Fitzgerald around Allied Bakeries’ Stvenage site following a £31m investment in its bread-making processes.

opened the cab door and the glorious smell of bread filled my nostrils, nothing fancy, just plain old white bread, and it was devilishly good. Salivating, I hurried into the Allied Bakeries’ reception to meet the firm’s

is the largest investment in the UK bakery industry in recent years. New bread plants have been introduced at Stockport, West Bromwich, Glasgow and London.

The development has culminated at the Stevenage plant, which employs 300 people, with the As direct result of our investment, Allied installation of a new bread line, capable of Bakeries has some of the most modern producing 9,000 loaves bakeries in the world per hour; and new equipment including bulk Nick Law, silos, bulk ingredients Operations Director, Allied Bakeries systems, mixers, a tin and lid handling system, a prover and oven, a cooler, bread conveyors and a slicer/ operations director and one of bagger combo. ’s Top 100 2014, Nick Law. Law takes me around the site, The Stevenage investment completes through every process, from the a £210m five-year programme across ingredients stage, through kneading, the Allied Bakeries’ portfolio, which

The new bread line is capable of producing 9,000 loaves per hour, enough to fill the Stratford Olympic pool five times over

22 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

Allied makes 11,000 deliveries on a daily basis, covering 50m km each year

cutting, rolling, proving and baking to packaging - and the process is intricately exact. As he plucks a ball of dough from the conveyer belt he tells me, “Once the yeast is activated, it’s a race to get the dough into the oven to create the perfect loaf.”

Law pulls the dough apart with his fingers to demonstrate its strength at this stage, explaining this is how the final product is a sturdy slice, which remains robust even against the most heavy handed butter spreader.

The operations director is delighted with all the developments, he explains: “As a direct result of our investment, Allied Bakeries has some of the most modern bakeries in the world and has a solid foundation upon which to compete in a value driven market. We have also enhanced the working environment for our people while significantly reducing our impact on the environment.”

In addition, the new kit means there is traceability throughout the entire process, which Law says “gives the customer assurance of the very best food standards.”

Aside from the benefits of more job security and improved processes, Law tells me the project hasn’t been without its obstacles. He explains, “Logistically it was challenging. At times we had to stop plants and buy in bread from our other sites.”

Regardless of the challenges, Law is proud the plant overcame them and most importantly “the customers haven’t seen a difference in our capability to supply.”

The improvements don’t stop here Law tells me, “We are always looking to innovate and meet the needs of the modern family, which is what the brand is all about.”

OUT AND ABOUT

Reason to celebrate It seems as though the Jaguar Land Rover brand is becoming as renowned for its exuberant launch events as it is for the actual cars it’s making. Callum Bentley took part in the most recent of these events.

T

he event in question was to mark what Jaguar Land Rover has coined another “significant milestone it the plant’s 70 year history,” – and rightly so. The Solihull plant marked the beginning of production of the new Jaguar XE with the official opening of its £500m “factory within a factory.”

With a full procession (for the 9,000 strong workforce) of the company’s heritage vehicles around the massive site to celebrate the latest addition to the JLR line up, some might say the event was a tad overdone. But we are beginning to get used to this from JLR now. The company are a success story, and it likes to celebrate that fact.

What is probably more worth celebrating is the contribution this new model will have for its suppliers.

The new model represents the culmination of more than £2bn of product, infrastructure and technology investment, and has been heralded by

JLR as vitally important for the British automotive supply chain thanks to an additional £4bn worth of contracts committed to 55 UK based suppliers.

Together these suppliers, which cover the length and breadth of the country, have provided 55% of the components to the new Jaguar model.

Amongst those suppliers who have felt the positive impact of JLR’s continued investment in product creation is Rosti McKechnie, a Yorkshire-based plastics specialist awarded a £75m contract for the Jaguar XE. The company has taken advantage of the opportunity presented by the growing UK automotive industry, installing a host of new robotic machinery following an investment of £18 million from its new Swedish owners. Their work force has doubled and is set to grow further in support of this contract award. In the Midlands, Rugby based Automotive Insulations, a company which manufactures thermal and acoustic insulation has invested

in a new 65,000 sq. ft. premises to accommodate its expanding workforce in preparation to supply the Jaguar XE. Birmingham based Sertec Group has invested £15 million in new presses, robotics and site upgrades, primarily at their Tyseley plant. This in turn has led to the creation of 107 new jobs to work on this vehicle alone.

Jaguar Land Rover purchasing director, Ian Harnett, said of the impact of Jaguar’s latest model: “Jaguar Land Rover is one of the UK’s success stories, not simply because it has seen an upsurge in demand thanks to sustained investment, but because it has been able to support a burgeoning, high-tech, highly skilled supply base here in the UK. With each successive new or upgraded model, we are seeing the positive impact felt amongst the entire automotive sector which is great news for everyone committed to ensuring the UK remains truly competitive on a global stage.”

The start of XE production at the Solihull plant is the first step in making the site a dual-branded manufacturing operation. Earlier this year, the company confirmed it would begin production of its new SUV, the F-PACE, which is also to be built at the site.

The XE body shop is fully automated with about 630 AAB robots

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 23

Tracking your top reads on www.themanufacturer.com last month

Best of Online

http://www.themanufacturer.com

Making of the final Bugatti Veyron

Popular blog contributions last month included:

Industry urged to consider risks and benefits of BYOD Hardware and data destruction specialist Julie Pickersgill, operations director with Advanced Digital Dynamics advises businesses to consider the advantages and downsides of a Bring Your Own Device (BYOD) policy. http://bit.ly/DigitalBYOD

Is your intellectual property at risk from 3D printing?

W

hen the Bugatti Veyron was first announced as the millennium drew closer, many people were sceptical that the basic parameters could ever work.

With more than 1,000 PS, a top speed in excess of 400 km/h, and acceleration from 0 to 100 in less than three seconds, the doubters thought it simply impossible to produce a super sports car with this level of performance while remaining controllable and drivable.

Bugatti engineers had to push the limits of physics and do things that had never been done before in automotive development. The Veyron is the first and only hyper car designed and built to handle any driving situation at any time in its production configuration.

Where other super sports cars and hyper cars require special preparation for individual driving situations, the Veyron automatically adjusts its settings without driver input.

The world première of the final and 450th Veyron at the Geneva Mtoro Show earlier this year marked the culmination of an unprecedented chapter in automotive history. Have a rare insight into the Bugatti production in Molsheim, France, and witness the process of manufacturing the last of its kind, the Bugatti Veyron 16.4 Grand Sport Vitesse ‘La Finale’.

Watch the video at http://bit.ly/FinalVeyron

24 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

High-value manufacturers may need to extend their intellectual property (IP) protection to guard against commercial competition from online file sharers and the growing number of suppliers with 3D printing capabilities, argues Richard Worthington, patent attorney & senior associate at Withers & Rogers. http://bit.ly/3Drisk

Energy: don’t get caught out Energy policy is constantly evolving, so it is easy for manufacturers to be caught on the back foot, warns Anthony Ainsworth, B2B and marketing director for E.ON. http://bit.ly/1J5seBr

Top Tweets What was the manufacturing sector saying in the lead up to #ELECTION2015

MANUFACTURING, THE NUMBERS

looks at some of the more interesting numbers in the manufacturing news in the past month.

The number of days Hybrid Air Vehicle’s Airlander aircraft is designed to stay airborne. The aircraft’s team is currently on track to raise the largest amount of crowdsourced funding for a UK manufacturing or engineering project. bit.ly/Airlander

The amount the UK motorcycle market makes in net sales per year according to the Motorcycle Industry Association. The industry directly employs 58,000 people in 5,700 different business across the UK. bit.ly/Motofigures

How much faster Carbon3D’s innovative Continuous Liquid Interface technology is being touted at printing compared to traditional 3D printers. Autodesk has recently confirmed it will be contributing $10m towards further investment in the technology. bit.ly/Carbon3Dspeed

The age of multi-awarding winning British firm, Gripple’s newly appointed managing director. Ed Stubbs takes over the position after transferring from the same position at Gripple’s sister company, Loadhog. bit.ly/GrippleMD

491,285

The proposed amount bargained between petrochemical giant Shell and its takeover target, BG. BG, formerly the exploration wing of British Gas, represent an attractive target for Shell due to its large portfolio of natural gas extraction projects. bit.ly/ShellTakeover

How many cars were sold in the UK in March this year, the most in any month in the 21st century. This is an increase of 5.87% compared to the same month last year and the highest figure in a single month since 1998 according to the Society of Motor Manufacturers and Traders (SMMT). bit.ly/UKcarsales

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 25

Up to speed

BLOODHOUND

Up to speed Catch up on the latest news and updates with ’s brand new monthly column from Bloodhound SSC’s, Conor La Grue.

The Rolls-Royce EJ 200 has been fitted into the upper body for the first time

Extreme machines need extreme teams

The last few months have been extraordinary: our very high work rate has ratcheted up even further, in a way none of us could foresee. And that’s because a 110+ hour, seven day working week is simply what it’s going to take to get the car operational this year.

To give you an idea how busy it is at the BLOODHOUND Technical Centre, we released as many parts into manufacture in the first nine weeks of 2015 as we did in the whole of 2013.

Pump, blades and more

Unlike many organisations we didn’t close shop over the Christmas holiday.

That extra effort bore fruit when the team was able to conduct some water pump tests with our new HTP pump before integrating the Jaguar supercharged V8 engine into the car as the power plant that will run the rocket pump.

After that the composite blade upper and lower sections – the very heart of the front of the car – arrived.

These parts were difficult to design and manufacture, but were delivered within an extraordinarily tight timescale.

In the last few months of the car design, however, the parts have been getting smaller but no less complex.

Every part we design and order is something that is being made for the first time ever and thus presents a real challenge to our supply chain.

Surface table and support kit

Most recently, adding another large surface table sped up progress towards

26 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

A small workshop with big dreams

seeing what the full length of the car looks like for the first time! For those of us who have worked on the Project since the beginning (including our brilliant team of suppliers and partners), this is the culmination of years of work and made us proud to see what we have produced between us.

We’re also spending more time on designing and building “the stuff to build the stuff”. This is the support kit, such as assembly-based tooling so we can put the car together and the kit needed to operate the car successfully.

Success in South Africa

Our partnerships in South Africa are evolving, with critical resources and systems are being driven into place.

Martyn Davidson, our Operations Director, and his team are working hard to make sure that we have all we

need to deploy and run the car safely and effectively in what is an incredibly remote location.

Heading towards the finishing line

It’s a real team effort at BLOODHOUND now, and with such long hours and such a huge amount of effort going into the Project, we feel that we definitely can complete the car in time to run it during 2015. In all of this, what helps to motivate us is that the BLOODHOUND Project is not just about building a 1,000mph car. It’s about inspiring a generation of girls and boys to discover, enjoy and pursue science, technology engineering and maths. So just as the car starts to look more like a car, the education programme is also going from strength to strength. The adventure is just beginning….

The industry’s leading magazine, bringing you the UK’s manufacturing news, articles and insights

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T

he last time I saw Carl Bass was in Las Vegas at Autodesk University 2014 where he stood on stage in front of a 10,000 strong crowd against the clang of electric guitars, flashing lasers and t-shirts being rocket-launched to eager hands.

Fast-forward four months and it seems almost incongruous to be sat with him sharing a quiet drink in the bar of one of London’s most exclusive boutique hotels. Dressed in scuffed trainers, jeans and an Instructables t-shirt, he doesn’t appear to be your typical CEO of a multi-billion dollar international company, but if there’s one thing Bass is renowned for, it’s bucking expectation.

From deciding to make the company’s software freely available to every one of the world’s educational institutions, to pioneering the world’s first free, open 3D printing software platform – Spark, and the first Sparkpowered 3D printer – Ember; the biggest difference Bass has driven since taking over the reins almost a decade ago, is Autodesk’s focus on tomorrow.

“We’ve been pretty purposeful about looking to the future and asking what’s going to matter, how is the landscape

The man behind the desk Jonny Williamson sits down with the CEO of Autodesk, Carl Bass.

28 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

No-one has ever had as great an access to what customers are trying to achieve, struggling with or pleased by as we have today

going to change, how are people going to design and manufacture?” he explains.

“We then try to fit the pieces together, identifying and acquiring innovative startups that mirror or drive forward our goals as a larger organisation.”

Though you can never be 100% sure, Bass admits, some things just seem obvious. Take the cloud for example; something which offers a huge amount of computing power, available on a scaleable basis, which you can either increase or decrease your usage of as and when necessary.

“Those attributes would be incredibly valuable in engineering, transforming

Autodesk

My day job is making the tools, but I get as much, if not more pleasure from actually putting them to use simulations that once took days into ones that take hours,” he says. “When you consider how people want to work and collaborate on projects, having a central coordinated point in the cloud just makes sense.”

According to the CEO, it boils down to the usual limitation – not the technology itself, but people’s willingness to adopt it. Would people embrace putting their information on the cloud? That’s something which for many, in the UK at least, remains open for debate.

Bass, however seems far more convinced: “There’s still a lot of hesitancy towards the cloud, especially in manufacturing; but right now Autodesk has 20 million users putting CAD files online, with 6 million new designs created each month. There may be plenty of naysayers, but conversely there are many embracing the cloud and realising its benefits.”

The huge global community which makes use of Autodesk’s software platforms is a resource Bass frequently makes use of, engaging with users’ comments and queries on the company’s various online forums.

It may be a rare occurrence elsewhere to have your suggestions answered by a CEO, but that difference is exactly what Bass is trying to foster around him.

“Our job is to discover how best to use Autodesk’s tools, how they can be improved and what can be done to make them more suitable for the task at hand,” he says.

“No-one has ever had as great an access to what customers are trying to achieve, struggling with or pleased by as we have today. It allows you to tap immediately and directly into what is happening either locally, nationally or globally.”

What boosts Bass’s ability to engage with this community of tool-users and makers is his own deep-rooted passion for making. In close proximity to his home in Berkeley, California is his

SPECIAL FEATURE

Autodesk President and CEO Carl Bass welcomes 10,000 attendees to Autodesk University 2014 (Image - Business Wire)

Generative design, coupled with additive manufacturing is going to be incredibly interesting in the very near future personal wood, stone and metalworking shop, a crucial place that combines his enjoyment of making with his desire to use his software as a customer, rather than developer.

“My day job is making the tools, but I get as much, if not more pleasure from actually putting them to use; not least because it gives me a better understanding of them. I get to share the frustrations of users and see where the areas are for improvement,” he enthuses.

Discussing where this enjoyment of making and engineering arose from, Bass says neither his mother (a teacher) nor his father (a chemist) encouraged it; compounded by the fact he grew up in a New York City apartment with neither a garage to work on cars in, or a garden to locate a shed.

He highlights a friend who gave him a furniture-building book during his years at Cornell University: “I read it, started putting some pieces together and never really stopped. It was that, combined with looking around me and for the first time noticing – and appreciating – that everything had been made by someone.”

Following several summers spent in Seattle and Maine serving as a river guide, and building various boats, kayaks and rafts; Bass returned to Cornell and graduated in mathematics.

The rest, as they say, is history.

Having navigated Autodesk’s successful course from 2D to 3D model-based design, and more recently supplementing the company’s software offering with its first physical product, Bass believes innovation is only going to become more important over the coming months and years.

“Our work used to stop at the screen, with the finished digital model. We left it to the user to get from that beautiful model to the physical object. Then we had a realisation that we had to help our users not only design something, but make something. That was a big focus for us last year.

“This year I expect to see a continued movement to the cloud for the core business. We’re really approaching the tipping point from naysayers to believers and you can feel the tide turning.

“Generative design (see bit.ly/ AutodeskVision), coupled with additive manufacturing is going to be incredibly interesting in the very near future, and we are going to start seeing commercial products based on these technologies making their way into the world.”

FURTHER INFO: You can find an extended version of this feature on ’s website: bit.ly/AutodeskCarlBass

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 29

T

he Coalition over the past five years has made great progress in supporting manufacturing:

More than 2 million apprenticeships have been created High Value Manufacturing Catapults - homes to R&D nestled between universities and business - are thriving and sharpening our innovative edge Industrial strategies are in place helping the automotive and aerospace sectors boom in exports R&D tax credits are increasingly helpful Investment in the domestic supply chain is boosting smaller firms

The UK needs to invest in digital and smart factories

invest, innovate and educate Brian Holliday, Managing Director of Siemens UK & Ireland, discusses what UK manufacturing needs to sustain growth.

30 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

This direction of travel and the foundations created have given Siemens the confidence to build a Hullbased facility to make wind turbines, creating up to 1,000 jobs. But what more do we need?

To enable a revolution in digitalisation, productivity and automation we call on the next government to focus with laser like precision on three areas - innovation, investment and skills.

These are the foundations to build a UK at the cutting-edge of manufacturing - to be at the heart of what many have called a “fourth technological revolution� (or Industry 4.0).

Innovation

The next government needs to invest for the long term. It should continue to steer applied research toward automation and digitalisation because the resultant longterm opportunities for the manufacturing sector are significant.

Advanced manufacturing, and the high levels of investment spearheaded by the automotive and aerospace industries, will take root in sectors that have often under invested. The benefits will be significant and enable more of our manufacturing base to address increasingly individualised production without an escalation in cost. This is known as mass customisation and it’s fuelled by the growth of a global, demanding middle class.

We must ensure the ongoing funding of the High Value Manufacturing Catapults using the current industry, university and government matched funding model. The science budget should be ring-fenced so we can help

Siemens

oPINION

High Value Manufacturing Catapult locations around the UK

An export economy needs high quality transport infrastructure including airports, ports and roads

UK industry innovate domestically, and help create new treatments in healthcare too.

R&D spending roughly amounts to 1.72% of GDP, lower than the 2.06% equivalent for the EU, and some way short of the previous government’s target to increase UK R&D investment to 2.5% of GDP by 2015. We think a new 2.5% target by 2020 would be a step in the right direction.

suggest freezing the AIA for 10 years at £1m.

We also believe enhanced capital allowances should be extended to cover automation technology in the same way they have been applied to energy efficient technology to stimulate investment and improve productivity for small and large scale manufacturers alike.

Investment

Skills

We urgently need more investment in manufacturing to address obsolescence and improve productivity in an increasingly global growth market for manufactured goods.

We need to bolster UK infrastructure.

An export economy needs high quality transport infrastructure including airports, ports and roads. A long-term plan for rail and roads, underpinned with world beating broadband and digital infrastructure, is now required and the announcement of the Northern Transport strategy looks promising.

The tax system needs to work better for manufacturers too. We’d suggest an urgent freeze on all new valuations for plant and machinery upgrades. The next government needs to remove plant and machinery from the business rates valuation to bolster business investment, helping achieve large efficiency savings for the UK tax payer.

For the process industries, the majority of the rate bill is made up of plant and machinery, so an equivalent valuation methodology should apply.

There is a full ongoing debate about the Annual Investment Allowance (AIA), currently edged at £500,000 but due to fall back to £25,000 in December. We

We need continued focus.

Employers have a role to play in equipping the next generation with leading edge technology knowledge and vocational training at all levels.

Industrial digital skills will be needed in particular to embrace Industry 4.0. Triple the number of women in engineering. Establish a single mechanism within each LEP area to promote engineering careers to students, linking closely with a national careers advice service.

Also, creating a single signposting industry-led body through each LEP area would help SMEs identify the most appropriate providers to meet their specific needs.

The UK must invest in digital and smart factories, not least because the concept of Industry 4.0 plays to our strengths and tackles many of the complex production and consumption challenges we face today.

By investing in these technologies, UK industry stands to achieve up to 30%

The next government needs to invest for the long term [and continue] to steer applied research toward automation and digitalisation

improvement in productivity, which could in turn aid accelerated economic rebalancing.

As a global corporation that is also a large-scale British manufacturer, we’re keen to ensure the sector has a great manifesto derived from broad consultation that gifts direction and insight to our new government to continue what’s been started.

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 31

sectorfocus

The roots of the UK’s chemicals industry extend deep into the past and it is still a vibrant element in the UK economy. Ruari McCallion takes a litmus test.

A

ny consideration of the UK’s chemical industry cannot ignore the role of ICI – Imperial Chemical Industries – which was, for almost 70 years, the country’s largest manufacturing business. It was a huge company with interests sprawling across pharmaceuticals,

32 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

agrichemicals, polymers, paints, commodity chemicals, industrial chemicals and fibres. Its inventions included polythene, PET (polyethylene terephthalate – Terylene, as it was known), Perspex, Dulux paints (jointly with DuPont), Crimplene polyester yarn, and various pharmaceuticals.

Agrichemical products included

As attractive as American shale gas may be, reliance on foreign supplies carries a degree of risk

Chemicals

SECTOR FOCUS

SALT OF THE EARTH The British chemical industry owes its foundation and existence to huge salt deposits, especially in the North of England and in Cheshire in particular. They attracted the Romans 2000 years ago and they are still productive today.

Compass Minerals UK’s salt mine at Winsford, in Cheshire, is claimed to be the oldest working mine in the country. The deposit was discovered in 1844, by prospectors who were looking for coal in order to make salt from brine. It is 90% sodium chloride and currently provides half of Britain’s two million tonnes of rock salt needed for gritting each year.

Several towns around Winsford have something in common in their names: the suffix ‘wich’.

It is an Anglo-Saxon name that refers to salt and brine; its production is referred to in William the Conqueror’s Doomsday Book. The mid-Cheshire salt deposits were the foundation of the chemical works at Rocksavage, Runcorn, and – by extension – the agrochemical and petrochemical industries that extend along the banks of the Mersey upstream to Warrington and downstream to Stanlow oil refinery and on to Port Sunlight, near Ellesmere Port, where research and development of products ranging from soap to detergent has been undertaken for over 100 years. Port Sunlight is home to Unilever’s Home Care and Personal Care R&D department, with major programmes for Hair, Laundry, Deodorants and Household Care based there.

Unilever will be opening a new, £24 million, Advanced Manufacturing Centre in 2016 in Port Sunlight. The 6500m2 Advanced Manufacturing Centre is supported by £4 million from the Regional Growth Fund and will house an advanced pilot plant, which will allow scientists and engineers to test and develop new personal care and homecare product ideas up to factory scale. The company has also recently invested in a global IT hub; a new personal care factory; and the Materials Innovations Factory, which will be built at the heart of the science campus of the University of Liverpool. It will focus on cutting edge chemistry, formulation and high throughput product assessment.

herbicides and other pest control agents. It made soda ash products and its Nobel division made explosives.

Britain’s industrial landscape owes a lot to ICI but this is not mere nostalgia; the legacy persists today.

It was stimulated to divest to a more manageable structure after rebuffing an attempted takeover by Hanson Corporation in the early 1990s. The pharmaceutical side was spun off and became AstraZeneca PLC. It bought Unilever’s speciality chemicals business of Unilever in 1997 and sold it to WR Grace the following year. The Nylon business went to DuPont. It moved away from commodity chemicals and sold Tioxide, its titanium dioxide business, to Huntsman. Industrial chemicals went to Ineos; the remaining company, focused on paints, was acquired by Akzo Nobel in 2007. Of course, ICI was not the only chemical giant in the country; Unilever (previously Lever Brothers) had – and continues to have – a strong presence as well, especially in food, cosmetics and personal care.

The chemical industry in the UK is now around 70 per cent foreign-owned but

its roots are deep and long-lasting. The chemical business has high barriers to entry; building new facilities is expensive and so companies have an incentive to retain what they have. Most of the former ICI sites are still functioning and mostly doing so quite healthily. There are around 2500 non-pharmaceutical companies active in the chemicals sector; pharma companies total another 500 or so.

According to the Chemical Industries Association (CIA), the chemical and pharmaceutical industry is the second largest manufacturing sector in the UK; only the food industry contributes more to the domestic economy. The gross value added (GVA) by chemical and pharmaceutical industry was approximately £15.2 billion in 2013.

The split is unequal; the non-pharma chemical enterprises contributed approximately £8.8bn, with £6.4bn coming from the 500 pharma operations.

The Office of National Statistics (ONS) UK Labour Market report says that there was an average of 157,000 jobs in chemicals and pharmaceuticals in 2014, which is an eight per cent increase over the year before.

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 33

Chemicals

Chemistry by Numbers The North-West of England is home to the largest cluster of chemical companies, worth around

Chemical and pharmaceutical companies’ combined turnover is in excess of £50bn Chemical and pharmaceutical sector exported goods worth a total of £52.4bn in 2014 Approx number of nonpharmaceutical companies in the chemicals sector

Chemicals and pharmaceuticals are strong foreign currency earners; they exported goods worth a total of £52.4bn in 2014 and the trade surplus – according to the ONS UK Trade in Goods Classification by Activity CPA (08) publication – of the non-pharma sector was £2.75bn. The performance of the pharma sector is harder to

Ineos’ Grangemouth site is the company’s largest manufacturing site by volume of products. It makes around 1 million tonnes of products pa, including solvents, and is Scotland’s largest cru

34 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

quantify because of the impact of illegal drug imports, which includes counterfeit and ‘pirate’ pharmaceuticals and was valued at around £2.7bn in 2009. The CIA reckons that the pharma sector is in trade surplus, if illegals are excluded. Overall, given the difficulties in the Eurozone (our major trading partners), the industry can be regarded

SECTOR FOCUS

Chemistry Growth Partnership The Chemistry Growth Partnership is designed to facilitate longterm collaboration between Government and industry to address the key challenges and opportunities for the chemical sector. The Partnership is comprised of business leaders from the chemical sector who have agreed to pursue key work themes around energy, innovation and supply chains in order to achieve 50% sector growth by 2030.

According to the Chemical Industries Association, the chemical and pharmaceutical industry is the second largest manufacturing sector in the UK; only the food industry contributes more to the domestic economy as performing rather well. The EC takes more than half (57%) of the UK industry’s exports; North America takes 18% and Asia and Oceania together account for 11%.

What is the industry making – and exporting? Actually, it’s quite difficult to be precise. The largest subsector, according to the Standard Industrial Classification (SIC) system, is “other” – i.e., chemicals not classified elsewhere; it amounted to 11% of the industry’s GVA in 2013. Paints, varnishes and similar coatings, printing inks and mastics amounted to 7.6%; “other organic basic chemicals” was just behind, at 7.1%; and perfumes and toilet preparations accounted for 7%, according to the ONS Annual Business Survey.

The CIA suggests that the ONS Index of Production (IoP) gives “more timely” information on changes in industrial production than the Annual Business Survey, however. according to the IoP, non-pharma chemical production expanded by almost four per cent in

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organisations edition inclu and interviews featu red in this de: eaton Hyd rauli council, uk cs, the uk ministry of justice, Police forc solihull netland, john e, the Bicheno, deb British library, torb jørn H. bie simpson and joseph in tHis issu Paris. e: from capa bility to prac at the uk tice: Head ministry of of Business justice, rhia change continuous n Hamer, improvem exam ent in the balanced cont ines publ and evidence ribution of capability ic sector and how a , meaning is the key ful practice to transform going lean ing it. the pay off a budg solihull way: as the public secto in their own et deficit, many coun r tries to cils are hands by cutti savings usin ng waste and taking matters g making sens transformationlean practices. kim ible silco at solihull ck, metropolitan head of lean lean enfo discusses. rcem nottingham ent: Harry Barton, professor at his 2013 studBusiness school shar es his find ings from forces acro y of implementing lean in five ss the uk, high to reinstate police trust and conf lighting lean as a enhancin g police emp idence in policing mechanism , while loyee enga the leaning gement. library: Bud expectations get cuts and lean natio are compelling the publincreased customer nwide. Hea ic secto d of documen r to deploy services at the British library, and t delivery and custome part of the 42-year-old y appleya rd, documen r institution’s ts lean journey.

Chemicals

SECTOR FOCUS

A bitter pill Pharma faces a challenging future. It is almost impossible to exaggerate the long-term impact of the discovery of penicillin and subsequent antibiotics, which was back before WW2. It was a revolution in medicine greater than anything in pretty much any other sector of industry or even society. Maybe the internal combustion engine or the invention of electric power generation had something like the transformative effect – but they are not finding their efficacy undermined by new strains of microbes and biotics that have evolved to resist them. Pharma is faced with that. It has been used to spending a lot of money on R&D, over many years – but to reaping huge rewards from it. Not all the ideas worked; indeed, the majority did not. But those that did generated such huge sums that the failures were well worth the risk.

That era seems to be coming to a close.

MRSA (methicillin-resistant Staphylococcus aureus) is a bacterium that produces infections that leave doctors as helpless as they were in the era before antibiotics. Patients die of it and all modern therapies seem to be in vain. Clostridium difficile (c-diff), a type of spore-forming bacteria, causes infectious diarrhoea. It is an opportunist that can bloom when antibiotics have successfully treated a different infection. Not all bacteria are inimical to human beings; certain types of intestinal flora are essential and they can be compromised by antibiotics. C-diff seizes the opportunity and dives in, causing serious upset to the host’s digestive system and even death. It is reported to have killed around 29,000 people in the USA in 2011 (New England Journal of Medicine, 372). Most types of escherichia coli (e. coli) are completely harmless, some are essential to healthy digestion – and some turn on their hosts with a vengeance, causing serious food poisoning. Outbreaks in Scotland, England, Wales, Germany and other parts of the world have resulted in thousands of deaths. One strain, E.coli 0157:H7, deploys the ultimate “poison pill” – the organism releases a toxin called the Shiga Toxin, which is classified as a bioterrorist agent. It destroys red blood cells, which then clog the kidneys and lead to strokes.

E.coli ESBL (extended spectrum beta-lactamase) is resistant to antibiotics and can cause septicaemia that overwhelms the body’s defence systems, leading to septic shock and inevitable death.

Against these enemies, the quest is on to find completely new lines of medical therapies. Where they will emerge…is anyone’s guess. Penicillin was discovered by accident. So was Viagra – but they both came about as the result of very deliberate and focused research. The biotech sector in the UK is currently very small but it may have a part to play in the future. It is not only a good idea to invest in R&D in these areas – it could turn out to be, literally, lifesaving.

36 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

According to the ONS, non-pharma chemical production grew by four per cent in 2014 compared to the previous year

2014, compared with the year before and that strong growth in the latter half of the year and the first two months of 2015 helped the industry to achieve its highest level of output since August 2008 – just about the start of the Recession.

On the other side of the coin, pharma production fell, although at a slower rate at the beginning of this year than had been apparent at the start of 2014.

A number of reasons for the slowdown in the pharma industry have been put forward. For many years it was argued that the UK’s National Health Service was a magnet for global pharmaceutical companies; its patient records and data, going back to the late 1940s, was claimed to be an invaluable resource for companies seeking to develop new medical products.

The strong pharmaceutical research and development infrastructure in universities across the country, including Imperial and King’s in London, Nottingham, Cambridge and Manchester, was also claimed to be an attraction. A number of drugs and therapies have been developed over the years, from penicillin – albeit that it was American companies who commercialised production – through the Tamoxifen breast cancer drug, Inderal beta-blocker and some interesting “accidental” discoveries, such as Viagra. However, US company Pfizer, which owns the plant at Sandwich, Kent, where Viagra was discovered, announced in 2011 that the facility was to close. At the time of writing, the site is still open but with a much-reduced headcount. It also has a research facility in Cambridge.

According to Steve Elliott chief executive officer at the CIA, the future for the British chemical industry offers challenges and opportunities. Lower oil prices have put downward pressure on energy and feedstock costs; however, producers in the US are able to produce basic petrochemicals at much lower cost. The weak European economy has reduced demand from the industry’s largest trading partner and reduced the value of the Euro, which makes UK exports more expensive – but the European economies are recovering, subject to fallout from events in Greece. US shale gas imports will be starting late 2015/early 2016 and this should lead to increasing demand and lower production costs.

However, as attractive as American shale gas may be, reliance on foreign supplies carries a degree of risk – and that strengthens the case for the exploitation of domestic onshore and offshore unconventional oil and gas reserves, the Association believes.

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INTERVIEW

Callum Bentley speaks with UK engineering visionary, Professor Lord Kumar Bhattacharyya.

38 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

Professor Lord Kumar Bhattacharyya

INTERVIEW

I

“If you look at all the R&D scoreboards, ’m sitting on a blue faux-leather British industry is among the worst in couch - something that wouldn’t the world,” he says. “Besides maybe look entirely out of place in the one or two of the bigger companies latest Ikea catalogue - yet I’m in in areas such as pharmaceuticals, we a considerably moderate boardroom don’t have the R&D happening at the at Warwick University. I’m waiting for right level. If you look at the automotive Professor Lord Kumar Bhattacharyya. sector, the majority are Japanese He has been high on my “to interview” companies who don’t do any R&D in list for some time. After all, this is this country, or very little, because the man who made what could turn it’s all done in their home country. out to be one of the most profitable Here they just assemble it for the and prosperous introductions in UK European market.” manufacturing history - the coupling of There is also the question of the Jaguar Land Rover and Tata. flow on effect for R&D in the supply When he arrives, Professor chain – another reason Bhattacharyya Bhattacharyya walks in with a warm encouraged the charters of Warwick smile, we exchange pleasantries and he University to engage with JLR to sits down, reaching forward for a plate establish the centre, stating that quite of biscuits, which sits on the table in front of us. He’s been in enough meetings with upper level individuals to We concentrated for the past not worry about tucking into a Hob Nob while 30 years on operational efficiency and all in conversation with a that garbage, but nothing on investment business journalist.

I’m here to talk to and R&D Bhattacharyya about, among other things, the new £150m JLR-funded often the technologies which are National Automotive Innovation Centre; established at centres like the NAIC, are a project he says, is unlike anything and always should be transferrable into that is being done in the automotive other companies besides just JLR. sector anywhere in Europe. One of It’s easy to tout the impressive Bhattacharyya’s biggest gripes with investment figures of JLR’s recent the way the UK automotive industry success, a quick internet search will currently operates, is that the current attest, but just how sustainable is this level of research and development is done overseas, something he hopes the growth, and can the UK supply base keep up? new centre can help.

Foundation Stone event for National Automotive Innovation Centre

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 39

“It’s sustainable at the moment because, other than a set of small companies, there isn’t really any competition. The British car industry which used to do the development in this country has now disappeared. Now JLR is owned by Tata, all the work is done in this country.

So the greatest advantage for JLR is that it can be a pathfinder for others as well.

We haven’t got any lack of technical

In the end no matter how much government assistance comes in, it’s the small companies who have to do it themselves knowhow or a lack of understanding as to what is required and we have got brilliant young minds; if you put these things together, the potential is great.”

This may sound all well and good.

Optimism is a great quality trait to have.

But Bhattacharyya is not seeing the UK manufacturing landscape through rose-tinted spectacles. A lot has yet to be done from a government support standpoint in order to ensure the SME sector can become far more competitive than it already is. This is crucial, Bhattacharyya says, in sustaining the future of the automotive industry.

“The SMEs are not strong enough, that is the reason we virtually don’t have any first tier suppliers in this country.

First tier suppliers are the ones who develop the cutting-edge technology.

Second and third tier suppliers are here, but languish because they don’t have the funding to do the proper R&D. They depend on the host company for the most part. In Europe and other countries the host company gets a lot of R&D done by the suppliers. It’s a win-win situation.

“Unfortunately, if you look at the majority of the companies there is no long termism - there is no investment that takes place and productivity is low.

Then you look at very small companies.

They have great difficulties in getting funding, even from the banks. Hopefully with JLR moving forward there will be new suppliers coming in, especially in the new technologies market, particularly driverless cars, driver assisted cars and

40 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

Professor Lord Bhattacharyya and Dr Ralf Speth

the associated software development.

No matter how much government assistance comes in, it’s the small companies who have to do it themselves and that is the reason why JLR, as the big company, was very keen on pulling the suppliers.”

It’s easy to see why Bhattacharyya is both optimistic and cautious of the state of play in the UK automotive sector.

Throughout his career, he has watched the industry move through a state of rapid innovation in the 50s and 60s, with British companies such as Rover focusing on the lightweight potential of aluminium bodies, and Austin driving innovation in small, front-wheel drive cars. Yet in the late 60s and early 70s, as Bhattacharyya puts it, the UK automotive industry “lost its way”. Perhaps it was the massive push from German and Japanese marques, which had access to greater Marshall Aid after the war. These economies focused this kind of funding on their manufacturing economies, while British companies across the country fell into bankruptcy. So when a company such as Tata decides to put its weight, as significant as it is, behind a struggling company such as JLR, it’s little wonder he took the chance to make the right people meet.

A different story

But it almost wasn’t the success story it now is - or at least it could have potentially read a lot differently if Bhattacharyya hadn’t introduced Ratan Tata to JLR.

There have been whispers since the deal’s inception that JLR was not always destined to fall into Indian hands.

According to different sources, both Russian and Chinese private equity firms were courting the idea of investment.

However Bhattacharyya says that if either of these investors had their way, an important part might have been missing from the three most talked about letters in UK manufacturing.

“If the private equity firms took over then Jaguar would have gone,” he says.

“And there weren’t any guarantees that Land Rover would have been developed like it has. Most of the private equity companies mentioned the fact that they were not interested in Jaguar, but they had to buy it as a whole. I think as far as Britain is concerned, Land Rover is an icon that we need to protect. But in the end, like everything else, if Tata hadn’t come along I don’t believe any other company or private equity could have made it a success.”

But is this investment from Tata going to last? More so the investment in its UK facilities? Recent reports have indicated that Ratan Tata himself is seriously considering moving future production process to either the United States or parts of Europe. Austria has been mentioned as a potential site, as have other European nations. With JLR following in the footsteps of other auto makers in showing its desire to focus more on the development of driverless technologies, the scope for further production in the UK is in real fear of

Professor Lord Kumar Bhattacharyya

INTERVIEW

If the private equity firms took over then Jaguar would have gone Professor Lord Kumar Bhattacharyya KT CBE FREng FRS Professor Lord Bhattacharyya was born in Dhaka, India, and after graduating from the Indian Institute of Technology, Kharagpur, he was invited to become a graduate apprentice at Lucas Industries in the UK. After completing his graduate apprenticeship, he was offered the Lucas Fellowship and entered the University of Birmingham where he attained an MSc in Engineering Production and Management and a PhD in Engineering Production.

In 1980, he was invited to start a premier manufacturing, teaching and research group where he became the Professor of Manufacturing Systems. From this stemmed the Warwick Manufacturing Group (WMG).

Professor Lord Bhattacharyya at WMG Academy for Young Engineers launch

becoming less of a reality for the brand.

“I don’t think government is actually bothered, they talkthe-talk but they don’t incentivise the companies.

It’s very difficult to compare, but if you look at the incentives that other countries give, it’s much higher, as is the incentive to invest. Also you need the market. If you sell it in the US it’s better for them to make it there on top of all the subsidies they get. I don’t think the incentive scheme by government for the manufacturing industry is all that great anyway, it’s all talk.”

Despite Bhattacharyya’s ties to the UK Labour Party, he feels this way about all sides of parliament. “Over 30 years we flattened the manufacturing base and there was this perception of manufacturing corporations teaming with unions, and manufacturing

companies were treated exactly like a bank by the city. Unless you make money your stock doesn’t go up, and then chief executives incentivise for stock to go up which can only be achieved by cutting this and cutting that, and by the time they finish, the company has disappeared.

“That’s been the ruination of British industry. It is not that we don’t have any talent or intellectual horsepower it’s the way we manage and run our companies. It’s all very short term.

Unless you can get the money back in two or three years, big investment doesn’t take place.

“We concentrated for the past 30 years on operational efficiency and all that garbage, but nothing on investment and R&D. That’s been the critical factor in the demise of British industry because we concentrated on the wrong things. There is nothing intellectual about operational efficiency, there’s no rigour about it. When you want to sell something, you have to sell a product. If the product itself is not good, no matter how much you improve the efficiency, it’s no use. We concentrated on the superficial thing, but in the end it’s the product that sells. No matter what you do, if the product or technology isn’t there, you won’t be able to sell in a competitive environment.”

Bhattacharyya has built WMG into a unique academic group with a current annual programme of more than £180m which includes industrial and in-kind support. From WMG’s inception to the present day, Bhattacharyya has been a passionate advocate for academic engineering, with WMG being a beacon of manufacturing R&D and business education for 34 years.

But what keeps him going?

“What keeps me going?” he asks, laughing to himself. “Seeing a sector grow and to have intellectually challenging problems that you can achieve and attempt to solve. Furthermore if you want to make a success of something then you’ve got to look at the totality, hence, politics comes into it, finance, and having links with law companies. I have always been aware that manufacturing or other industry jobs in this country were perceived as second grade careers; I thought it would be interesting to get people in this sector and make it as vibrant as Germany, France or anywhere else in the world. “ Do you think you’re almost there?

“I don’t know but it’s a good start,” he says, laughing again. “I want to train as many people as possible for them to continue this journey. Then we get a critical mass of people and then I have no reason whatsoever to think Britain can’t be a first grade manufacturing nation, because we have all the ingredients to be successful. Look at South Korea, Taiwan and Japan, where did they come from? They all had problems of natural resources etc. South Korea was nothing 50 years ago, even 20 years ago, but look now. Once you have the right policy, you can do it.

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 41

6Osecond Dr Julie Madigan, CEO, The Manufacturing Institute

interview

Dr Julie Madigan

CEO, The Manufacturing Institute What do you think will be the biggest changedriver for manufacturing in 2015?

The UK manufacturing scene has changed significantly over the past 20 years since The Manufacturing Institute was conceived. How has the Institute changed over this time?

Some things haven’t changed at all in the last two decades. Recruiting the right people, training them well, keeping them, knowing how to run a business efficiently to profit while looking to the future are all as important as ever.

One of the biggest changes we are seeing is the “democratisation” of design and manufacture. Open innovation trends fuelled by open source design and software, coupled with cost reductions in machinery, and the emergence of global networks sharing know-how and innovation capability will lower the barriers to enter manufacturing.

This is being referred to as the next industrial revolution. This will help generate a much larger number of smaller manufacturing businesses, which will result in a greater number of manufacturing jobs. This knowledgebased economy will play into Europe’s capabilities of design and innovation and so increase Europe’s competitiveness against the Far East.

42 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

Manufacturers are turning their attention to growth as we edge out of recession. The prospects for the Eurozone are dampening expectations however. Smaller companies, will need support to underpin growth and react to the increasing skills and talent shortages. Investment constraints are also capping the potential of our manufacturing base.

We are seeing an increase in the number of privately funded deals happening in the manufacturing sector, which bodes well. The arrival of the devolution debate is welcome, providing it can be directed towards the key constraints on business growth and not hijacked by intermediary structures.

What areas are you seeing boardlevel manufacturing executives struggle to cope with most right now?

The skills gap is our most pressing issue. If we are to grow this sector and exploit the opportunities it brings, what levels of skill will be needed and how will this be achieved? Perhaps a more radical approach is required. The skills shortage and lack of entrants to the manufacturing sector is happening at a time when the sector is due to boom.

The Institute prides itself on the programmes it nurtures such as the Fab Lab and the Make It programme. Are there any new projects in the pipeline?

We have just launched our Enterprise Excellence Framework, which has been developed from 20 years of face to face experience helping thousands of manufacturing companies to be the best that they can be. It is a proven method to guide organisations through the complex process of achieving and sustaining world-class performance.

The Framework drives excellence into every corner of the business and establishes a culture that ensures every individual is committed to strategic objectives, inspiring and motivating them to take part in the company’s transformation and subsequent longterm success.

We’ve also been talking to manufacturers in Yorkshire and we’ll be launching a series of workshops there in the summer. Watch this space!

You’ve been CEO of The Manufacturing Institute since 1995. What, in your opinion, has been the greatest achievement for the Institute?

I’m proud that we are still going strong and that we haven’t been afraid to take some risks over the years from opening the first UK Fab Lab five years ago to being the first partner of the Shingo Institute in Europe.

We have helped more organisations achieve recognition than any other Shingo affiliate, including the first two sites recognised in Europe, Ultraframe and BAE systems, and the first three, full Shingo Prize Winners in Europe, Abbott Vascular, Depuy Synthes and Newsprinters Eurocentral.

I’m proud that we are still going strong and that we haven’t been afraid to take some risks over the years Over the last 20 years we have educated over 50,000 manufacturers, worked in over 9,000 manufacturing companies across the world, achieved over £1bn of quality, cost and delivery impacts, worked with 60,000 children through our Make IT challenges.

We hear success stories from manufacturing companies we work with every day. Making a difference is our greatest achievement.

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

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Learning to lean

The Lean Top 25

A

t the conference LMJ is launching its inaugural Lean Top 25. The Lean Top 25 aims to promote and encourage those involved in lean in all industries and sectors. As lean advances, we aim to encourage those who have shown diligence, passion and professionalism for reducing waste, engaging staff and colleagues, and encouraging a better and more productive workplace. With thousands around Europe engaged in lean at all levels, there are multiple people who are doing their best every day, but we want to highlight those shining stars who are taking it to the next level.

The nominations are open to anyone involved in lean as a practioner¬ in Europe (no consultants or academics), primarily those involved with any of the following three criteria: Involvement and waste reduction: someone who is passionate about lean

44 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

LMJ’s editor Andrew Putwain discusses lean’s political possibility and the diversity of the methodology.

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he Lean Management Journal has been running for over half a decade, and after hundreds of articles and contributors, dozens of events and conferences, it has hopefully achieved something in teaching and expounding the ideas of lean to the wider world.

In July we travel to Amsterdam for the annual LMJ conference where we will be focusing on banking, finance and legal industries and their take on lean.

Not to ignore manufacturing, engineering and technology, but it’s about time we share the ideas of lean and it’s efficiency and staff engagement with the rest of the world, right? The inefficiency and corrupt banking and finance sector put the economy back several

and has created or managed a lean implementation or continuous improvement change that has seen a significant rise in profit margins or increase in production.

Championing: a person publicising lean and helping its reach grow.

Someone who is driving more knowledge of lean and creating awareness of continuous improvement.

Innovation: a lean practioner whose ideas and enthusiasm have led them on a new path of lean, whether it be a minor tweak to the existing way of implementation or a revolutionary idea that has been a game changer.

LMJ has contacted over two dozen industry experts including academics, senior managers, consultants, business insiders, teachers and educators, and those with a genuine passion on lean to get involved and nominate who they think has done outstanding work.

We’ve already had a great list of nominations and are still looking for more. Those who are selected to be part of the top 25, are invited to attend the networking dinner at the Annual LMJ European Conference in Amsterdam, July 8-9, where the list will be revealed, with interviews and biographies in the next edition of the LMJ.

decades only a few years ago-something we’re all still suffering for.

We’re hoping they’ll come and learn something and we can all pass on our knowledge between the industries.

That’s one of the greatest things about lean: the toolbox works in every industry. It’s just a task of sitting down, thinking it through, looking at the situation and data then making sensible, informed decisions and improvement.

As I write this, the nation is yet to go to the polls, but hopefully with all George Osborne’s talk of “the long term economic plan” and “rebalancing the economy” won’t be forgotten, no matter who wins. So with these ideas, it’s just as important we drill lean into the bankers’ and lawyers’ heads, as it is for any operations manager in a factory, so they see the benefits it can bring.

The sixth Annual LMJ European Conference

T

he conference will be a fantastic event for networking and learning best practice with fellow lean practioners.

Speakers lined up to deliver fascinating presentations are: Bill Ulyett, lean global director, Astrazeneca Howard Bettany, divisional lean manager, Parker Hannifin

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n the manufacturing sector, and for that matter, in many large organisations across a variety of industries, kaizen is a wellrespected approach to improvement. The methodology, whose moniker literally means good change in Japanese, has its origins after World War II. However, based upon many published studies and articles about its adoption, organisations might assume kaizen as a sweeping effort often undertaken by giant corporations with equally large budgets.

When Metcam decided to tackle kaizen in 2013, we believed nothing could be farther from the truth. The beauty of kaizen is it can be applied incrementally, with small changes adding up to major benefits. It is elegant in its simplicity, and its focus on engaging employees in the improvement process was exactly what Metcam needed at the time.

Adopting kaizen was a logical step in our continual quest for improvement, which includes adopting the leanest possible stance Bernard Auton, director throughout the company. Over the of European operations, course of 2014, we implemented National Instruments 11 kaizen initiatives that grew out of Tom Slate, continuous consultant recommendations, and improvement director, the results were dramatic–in some Clifford Chance instances, we reduced staff effort and/or production time and expense If you want to take by as much as 30%. part in this great exchange of ideas as we bring together The journey from good to best banking and finance, Since its founding in 1989, Metcam legal, manufacturing, has always placed quality and lean engineering, principles at the heart of its operations. construction, pharma, We have conducted numerous lean public service, improvement projects over the years, healthcare, education some of which succeeded brilliantly and every other industry and continue to benefit us to this day. the sun for two days of However, in other cases, we found learning and networking after a few months–or sometimes even (or just a bit of banker a year or more–old habits would slip bashing over lunch) then back into these processes and undo please get in contact with some of the benefit we had derived events@hennikgroup. from an initial improvement effort. com and join us in We see improvement as a Amsterdam, July 8-9 continuum–a journey is never for LMJAC 2015. We’re completed. Consequently, we not saying it’s the most decided to focus on making important lean event of numerous small changes throughout the year, but we’re not the plant, one employee project at a not saying it either. We time, and to continue that approach, hope to see you there. if it succeeded, indefinitely. This decision led us to adopt kaizen.

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Bruce Hagenau, President of fabricators Metcam, discusses how the Georgia firm reaped big rewards with kaizen.

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Norfolk County Council

Manufacturing Leadership

Norfolk’s road to success

Norfolk is a fast growing location, offering a great place to live, work, visit, and an excellent environment for businesses to start, grow and innovate

Norfolk County Council tells why major improvements to Norfolk’s road infrastructure has made the county a bright option for boosting start-ups and businesses considering relocation.

S

pecialist manufacturer Warings Furniture is one of Norfolk’s success stories, counting some of Britain’s leading brands among its customers. The firm employs 130 people and has a turnover of £8.5m.

Founded by Graham Waring in 1986, the business which he jointly owns and runs with his wife Rachael, designs and manufactures contract furniture for clients across the hospitality industry.

These include Jamie’s Italian, Costa Coffee, Pret-a-Manger, Pizza Express, Travelodge, and Center Parcs.

The company also supplies to customers in Europe and Asia, making inroads into the lucrative Chinese market, where it created a new company, Warings International, to work with existing clients as they sought to open new outlets.

Back in Norfolk, Warings Furniture is located on a 17-acre site in a corner of south-west Norfolk, surrounded by

46 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

fields. Despite the green surroundings, it is just a short drive from the now fully dualled A11, and close to the main distribution hubs at Snetterton.

The recent £105m dualling of the main route in and out of Norfolk has not only benefitted Warings, but has begun to attract other leading companies into the area, including parcel firm DPD, which opened up a £1.2m depot at Snetterton in 2013.

The faster access is helping to change perceptions of Norfolk, raising awareness of its manufacturing offer, and its potential to attract inward investment.

“We design here, and we make the prototypes here, and everything which comes through is finished here,” Waring said.

“We ship our own products and have vehicles right around the country and also Ireland and Europe.

“We are also close to where some of our goods come in and out of the

country at Felixstowe. Getting down the A11 and the A14 is very important to us.

“Our vehicles are now getting back quicker, they are not sitting in traffic anymore, and we are saving on fuel.

“We can get to London and the east side of the city in about 1hr 50 minutes, that’s great for us.”

Warings Furniture has benefitted from advice and support from Norfolk County Council’s economic development team, as well as receiving grant funding from New Anglia Local Enterprise Partnership.

Norfolk is a fast growing location, offering a great place to live, work, visit, and an excellent environment for businesses to start, grow and innovate.

Quality, cost-effective commercial property, lower than average business operating cost, and a great quality of life and affordable property and living costs for staff. As well as a fully dualled A11, there are improvements planned to both the A47 and the Norwich to London rail line.

The county is already home to great brands, such as Aviva, Lotus, Virgin Money, Bernard Matthews, Britvic and Colman’s.

FURTHER INFO: Find out how you can locate to Norfolk by visiting www.locatenorfolk.com.

Materials chemistry

Manufacturing Leadership

The chemistry behind innovation Jonny Williamson chats with John ContiRamsden, Director of the Knowledge Centre for Materials Chemistry.

I

t’s been estimated that 15% of the UK’s GDP comes from businesses that produce and process materials, with a total turnover of £170bn and exports worth £50bn.

Thanks to strengthening connections between research institutions and industry, a fundamental understanding of the atomic structure and interactions at the molecular level is helping to drive innovation.

A key figure helping to create these connections is John Conti-Ramsden, director of the Knowledge Centre for Materials Chemistry (KCMC).

Officially launched in 2009, the KCMC aims to drive industrial growth for the UK chemistry-using industries through the development and application of cuttingedge materials research.

“Materials have a vast range of UK manufacturing activities and applications, and there’s an ever increasing number of opportunities given

the growth of the nation’s industry,” Ramsden enthuses.

“Take a modern smartphone apart, for example, and you’ll find many of the materials used in its manufacture are relatively new; but you can’t just incorporate these materials, you first have to understand their properties, how they react and interact with each other and the user.”

An ongoing challenge, according to Conti-Ramsden, is that though chemistry and material sciences play a pivotal role across almost every industrial sector, people’s awareness of their importance remains relatively low.

Companies that manufacture a final product often want to discuss the item in its entirety, they don’t necessarily want to talk about the technology and materials that go into its assembly.

“It’s absolutely critical that when a new product is launched and celebrated, the same, if not more focus is placed

on the micro-innovations behind that finished item,” he says. “To raise the profile of materials chemistry, it’s vital to discuss the role it plays as much as possible and embed its importance in people’s consciousness.”

The major areas of industrial growth for the UK - automotive, aerospace and construction - are where this conversation needs to happen or continue to occur, particularly as the use of plastics and composites are currently helping to transform the automotive and aerospace sectors.

“It’s also critically important that we raise the profile of materials chemistry with government, and promote innovation,” the director adds. “What’s encouraging is that the number of manufacturers that recognise the importance of innovation in materials and the opportunities it provides is rising.”

According to Conti-Ramsden, now is an ideal time to become actively involved if you aren’t already; though he warns that identifying the correct time for a manufacturer to become involved in the product development cycle can prove tricky.

“When you look at innovation for something like a hybrid fuel cell, you have to bring so many different elements together - new materials, innovation and technology - that it makes it quite complicated,” he explains.

“It centres on getting the right people and companies together at the right time so that they can develop a successful business proposition, not just for the end user, but for the developer and, critically, the wider innovation landscape.”

For those looking to engage with innovation, and materials chemistry specifically, at a deeper level, ContiRamsden advises that; “Many universities involved in relevant research have become more aware of the need to engage with industry, so it’s always worth reaching out to those who seek to push the envelope and develop new technologies, applications, and markets.”

FURTHER INFO: You can find an extended version of this feature on ’s website. bit.ly/ChemistryInnovation

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 47

EEF Insights

Manufacturing Leadership

Smaller manufacturers can now have access to the same sort of technologies as their bigger competitors

Competing on core competencies Paul Carreiro, Managing Director, Europe, Infor, explains why technology has become a primary driver of profitability, enabling UK manufacturers to cement competitive advantage in a global economy.

W

ith manufacturing output rising at around 0.2% a quarter, the UK is finally enjoying a sustained period of growth. Fuelled by stable costs, low interest rates and more predictable demand, market conditions are amenable, and the hard work undertaken by manufacturers to reinvent themselves is paying dividends. However, we are by no means out of the woods.

As the 11th largest manufacturing nation in the world, the UK faces a number of major challenges. It can never be the lowest cost provider. Economic factors such as taxation infrastructures and wages in the Far East and Eastern Europe mean that those countries will always have an advantage from a purely cost standpoint.

48 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

So in order to sustain growth and maintain competitiveness we must focus on our core strengths of innovation, productivity and service, continuously looking at ways to enhance these areas.

Technology is crucial to this end.

Gone are the days where systems were deployed to cut costs and refine back office processes. For the most part this has been achieved. In 2015 technology is a key driver of growth and competitive advantage, in the same way that new skills or new production equipment might be. This sentiment is echoed by manufacturers themselves, with almost two thirds claiming that UK manufacturing’s ability to compete globally will depend on keeping up with technology according to a recent EEF

commissioned study. At the same time, manufacturers in the leading quartile of performance are typically those that have invested the most in technology and supporting systems.

Industry 4.0 is expediting this shift, providing manufacturers with a framework from which to deliver against these key areas. Strategies to create super-rich repositories of information enable a level of insight which would previously have been impossible. This in turn brings far greater speed and intelligence to operational decision making, establishing sufficient agility to compete on core strengths. Quite literally, manufacturers can act faster to create a product, exploit sales opportunities or reduce costs.

Another major game changer is cloud. In the past, the level of investment and commitment involved in extracting this kind of intelligence would have been prohibitive to all but the largest players. However, Cloud enables manufacturers of all sizes to access powerful computing power and capabilities, on demand. Smaller manufacturers can now have access to the same sort of technologies as their bigger competitors. This means they can rapidly grow their businesses without growing their headcount and cost base.

With every business decision encompassing technology, whether it is opening a new plant in China, managing a global supply chain, or introducing a new service for customers, we cannot afford to wait.

Connected, contextualised information, driven by Industry 4.0 and underpinned by effective IT strategies, enables manufacturers to expedite innovation, boost productivity and differentiate their service offerings. And if British manufacturers can seize the opportunity now, they stand to see current levels of growth accelerate, and firmly cement the UK’s position on the global stage.

Brian Warwick, Applied Component Technology

Employee of the Month May 2015 Brian Warwick

Technical and Product Development Manager, Applied Component Technology

EMPLOYEE OF THE MONTH

CV in brief Age: 43 Education: Graduated with an exemption in South Africa, before studying Electronic Engineering at the Durban University of Technology.

Career to date: Began in electronics with PCs, printers and access control equipment maintenance and then moved into the design and manufacture of glass fibre products for the chemical manufacturing and processing industry.

I was offered an opportunity in the automotive industry to re-design and localise OEM air condition units for the aftermarket, leading to being headhunted by a UK-based accessory manufacturer.

This move paved the way for an invitation by Applied Component Technology (ACT) to work on developing innovative automotive interior trim systems and a lightweight galley cart for airlines, which we will shortly be entering into full production.

Hobbies and interests: I’ve always had a general interest in technology and engineering, from driving live steam locomotives to building my own computers.

What personal characteristics help you in your role?

An analytical and methodical approach to things, which gives me the platform to quickly conceive a number of potential solutions that I can refine into a more controlled result.

What is your role and what are your main responsibilities?

My main role is to oversee all aspects of the design and development of new products at ACT. This is a very exciting position and gives me the chance to explore new opportunities for the company, especially with our capabilities in delivering lightweight solutions. I also like it because I get to be fully involved with the concept, the prototypes and then the challenge of getting them in a position to enter volume production.

What are the key technical skills you use?

A good knowledge of materials and manufacturing processes are essential and skills I use every day. I also like to think I have a logical approach to problem solving and getting the best out of the team I am responsible for.

What do you consider to be your biggest personal success at the company so far?

The galley cart project has certainly been the most challenging and required all of my experience and knowledge to make it work. To see it progress into a product that can be manufactured competitively has been an incredible journey for me.

What are the most rewarding parts of your job?

There are a number of aspects I enjoy, but the most rewarding aspect is seeing people use products I’ve been involved within their daily lives. The key part of the galley cart project was finding a materials solution that met the often conflicting requirements for sustainability and a reduction in weight, yet still offers higher strength properties.

Working with the team at ACT and our suppliers we achieved a panel design, which has just passed

a stringent 50kg 9G aerospace structural test with flying colours. This type of challenge, going from concept to reality and overcoming key challenges under extreme time pressure, makes my job extremely demanding but ultimately rewarding.

I now look forward to seeing the galley cart in use on my next flight!

As a typical engineer, I’m already looking at derivatives of our exciting new composite panel and how it can be used in the automotive sector. No doubt further challenges lie ahead!

Do you have a grand career ambition?

ACT is now poised for considerable growth on the back of the galley cart project and some exciting new automotive interior projects. My mediumterm ambition is to develop my team as the company expands.

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 49

Engendering the future

I

Earlier this year the IET revealed parents as the prime culprits in deterring their daughters from careers in STEM. Victoria Fitzgerald reports.

n 2015 it is difficult to believe that gender stereotyping still exists, and in my role at , I am constantly informed at events that the times are changing.

However, I fear on closer examination it is only in the circles I frequent, filled with like-minded individuals, where I hear these stories, when, in fact, beyond these boundaries this sort of discrimination continues to be omnipresent.

Its pervasiveness is evident in a short walk through a UK department store in search of a gender neutral gift for a pregnant

friend, where I’m met by a clearly defined demarcation between pink and blue articles. Consequently, I was not surprised to learn that, according to research from the Institution of Engineering and Technology (IET), only 7% of parents would encourage their daughters to pursue a career in engineering.

From the hospital crib to the primary school playground and into adult life where political parties take to the streets in a pink van to garner female votes, our subconscious is permeated with ideals of what girls should do and what boys should do, and for no other reason than that’s how items are marketed. Writing for The Atlantic in December 2014, Elizabeth Sweet says, “the marketing of toys is more gendered now than even 50 years ago, when gender discrimination was the norm”; and at an event last year, Athene Donald, Professor of Experimental Physics at the University of Cambridge, referred to the most common words used to market boys’ toys as “strength” and “leader” and for girls’ toys as “princess” and “magic”. Donald commented that she couldn’t remember the last time magic helped her prevail in her research.

50 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

EEF’s Women in Manufacturing 2015 report also revealed that although women now account for 23% of all board seats in FTSE 100 manufacturers - up from 19% in 2013 and 21% last year - women continue to be underrepresented at every level, including apprentice and graduate-entry level where the manufacturing sector seeks its future stars. Unsurprisingly, women comprise only 9% of the manufacturing sector.

Similarly, Chloe Agg, senior mechanical engineer at Cundall, was not shocked by the IET results, she told , “I think it’s disappointing, yes. But I don’t think it’s particularly surprising. As an engineer myself, when I talk to people about what I do or rather when I introduce myself and say ‘hi I am an engineer’ there’s always a surprised look.

“I think people just don’t perceive it, A) a career for women, B) a fun, exciting rewarding career. I think people think it’s all about grease and cars.”

But Agg doesn’t believe there will be a rapid progression, she explains, “I don’t think we’ll do anything quickly.

“It takes people a long time to change opinions but I think you can already see some of that in the new engineering academies. I’m working on the design of one at the moment, which has given me the opportunity to look at an existing one and it’s good to see there’s a much

Women in manufacturing

IET research Parents of girls were asked what career their daughters would be interested in:

WORKFORCE & SKILLS

Parents of boys were asked the same question:

32%

Education and childcare

29% The Arts

26%

Healthcare

23% Hair and beauty

higher proportion of girls in those than there are in industry itself.

“I think that change is already starting but the IET campaign will really help with that.”

Engineering a Better World

On the bright side, industry leaders are and have been showcasing the issue and backing initiatives left, right and centre for some time. However, there comes a point when we need to stop talking and start doing. IET’s Engineering a Better World has seen the organisation join with a number of industry stakeholders to develop the campaign, which looks to inspire the next generation of engineers and technicians by encouraging young people and their parents to nurture their curiosity and think differently about careers in engineering. The campaign will also showcase female role models who have creative and rewarding careers.

As part of the project, IET gave parents and children some information on the exciting careers available in the engineering sector. Before being more informed, fewer than half of those parents with daughters would have encouraged them to pursue engineering.

Having seen the information, this figure rose from 45% up to 67% - an increase of almost 50%. The figure also rose

47%

substantially among girls themselves rising from 32% up to 61%.

The Primary Engineer

Susan Scurlock, chief executive and founder of Primary Engineer, believes that we need to stop getting hung up on gender stereotyping and let budding female engineers be themselves, “We get really caught up in these massive questions that when you drill down into them, aren’t really meaningful.

“There’s nothing wrong with being a girl, it doesn’t stop you being clever. It doesn’t stop you from doing engineering, if you want to do engineering in pink then do it in pink, it doesn’t matter.”

Primary Engineer is a non-profit organisation that aims to encourage young people to consider careers in STEM-related professions. It offers primary schools a way to deliver practical mathematics and science to design technology activities, including teacher training interactive and paper-based resources, and regional and national competitions. All projects are linked to practicing engineers to provide a realworld context to the project. This year the organisation is working with nursery schools. Scurlock explains, “We launched this year, early learning engineer for nursery schools and reception teachers.

“We did that on the premise that there’s actually a demand for it, the

Information technology

33% Sport

28%

Engineering

teachers that have used it found it absolutely extraordinary. Engineering in nursery schools is the next step I think.

“Last year in the House of Lords, we launched the Institution of Primary Engineers and the Institution of Secondary Engineers.

“It starts with children at the age of 5 and will take them through to 17/18 with the end result being they’d go off to join as a member of a professional engineering institution of their choice.”

Don’t sweat the small stuff

Scurlock makes an excellent point, we need to stop agonising over issues that detract from the point. Stereotypes always have existed and always will.

By just ignoring them and instead turning our attention to promoting the rewarding, exciting and well-paid jobs that exist for both young men and women in manufacturing, will in itself alter perceptions.

Young people cannot be inspired by what they cannot see. We have a responsibility as parents, teachers, influencers and individuals in manufacturing and engineering to promote the successes of industry from a young age at home, in school and in the public domain to make a sustainable change and fill the talent pool with gifted young people of both sexes.

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 51

Workforce planning software

WORKFORCE & SKILLS

Time for an upgrade Shift patterns are about much more than just spreadsheets, dog-eared wall charts or when the workforce clocks in and out, explains Kevin White.

S

hift patterns are the arteries of the manufacturing sector - look after them and it’s the key to unlocking transformative gains in productivity, quality and employee satisfaction.

Conversely, neglecting their importance can lead to harmful inefficiencies and in some cases, widespread disaffection and strike action.

The ability to harness new opportunities and mitigate emerging risks is pushing the need for optimised and flexible resourcing arrangements up the agenda.

The working time imperative

Technology, workforce empowerment and globalised competition are creating significant challenges for manufacturers, which continue to operate shifts resulting from legacy working practices and institutionalised habits.

These patterns can bear little resemblance to the actual daily, monthly and even yearly needs of the business.

The side effects of this can be significant. Over-supply of labour leads to unnecessary inefficiencies which if persistent, lead to job losses and skills drain.

Gaps in labour provision typically generate high reliance on overtime and agency staff, poorer quality of output, employee stress or sickness and breaches of working time or health and safety legislation.

52 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

It’s interesting to see how many manufacturers are resigned to the need for expensive overtime and how many employees see it as a normalised element of their working life.

Typically at the heart of these resourcing issues is an inaccurate picture of how demand and labour supply truly align and interact.

The truth behind demand

Gross hours used to create shift patterns can overlook key supply limitations such as training, holidays and sickness. This gives a false reading of labour capacity and ultimately leads to dangerous pinch points at times of peak demand.

Calculating data-validated baselines are essential to build an accurate picture of demand and labour supply.

Calculating the net amount of hours an employee is actually productive is the first step, but modelling and monitoring the true demand that exists in an organisation remains the key.

Intelligent design

Taking a demand-led approach to rostering, unlocks innovative new ways to cover the planned, unforeseen and external factors which cause peaks and troughs.

The flexibility it affords can enable the creation of truly responsive resourcing that maximises hour-to-hour performance and efficiency levels - providing the mechanism to effectively manage

At the heart of these resourcing issues is an inaccurate picture of how demand and labour supply truly align and interact demand variability, such as seasonality and support contingency requirements.

Software such as real-time interactive modelling identifies, at a glance, under or over-provision alongside any potential contractual or regulatory breaches.

The ability to customise patterns and “drag and drop” shifts within the defined parameters dictated by supply and demand is empowering. It enables operations teams to easily come up with co-created solutions that work for the business, the individual, a team and other departments.

This unlocks a huge range of working time options that can be used to tackle many of the challenges that manufacturers face now and in the future.

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19 May

Visit the National Apprenticeship Competition, take part in the Manufacturing Alumni conference and the tours of key manufacturing facilities.

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E.ON

Power to change Advice from E.ON helped Foleshill Plating to more than double its production capacity but keep increases to its energy use to only 20%, as Chris Waterhouse told Ruari McCallion.

M

etal plating, which involves acid, zinc, chromium, nickel and heavy metals, is an energy-intensive and environmentally challenging process.

That’s why, in 2008, after 30 years in business, Foleshill Plating Co Ltd, of Exhall, Coventry, moved markets and installed its first cathodic electro-coating line. After a second line was added in 2011, e-coating now accounts for over 90% of their business. And, since launching in the automotive sector in 2013, its customer list now includes names like JCB, JaguarLandRover, Aston Martin, McLaren and Bentley.

Whilst such growth is a real success story, it also presented some challenges.

“We found ourselves faced with a choice: to move forward or really step back,” said Chris Waterhouse, Technical Director. The decision was to expand significantly. A new 16,560 sq ft facility increased Foleshill’s space by over 80% and enabled them to boost production capacity by 120%. The expansion was helped by a grant for nearly £270,000 from the Coventry and Warwickshire LEP (Local Enterprise Partnership), which is supported by the government’s Regional Growth Fund (RGF).

You don’t go into an expansion of that scale without careful planning. Foleshill

54 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

got in touch with E.ON and discussed its energy needs in depth. As it relies on 160ºC temperatures on their painting line, energy’s a very big issue.

“E.ON were very thorough with its analysis and quotation process,” Waterhouse said. “We were advised that we needed to upgrade our power supply by 500kW. It put in a new transformer, which has two 11KV switches and means that we now have, effectively, three isolatable supplies.” At the same time, we installed energy-efficient equipment, including soft-start motors and the painting line’s gas-fired heating was replaced with a hot water boiler system.

“We have ten motors running at a variety of loads; soft-start means that we don’t over-demand electricity, so we don’t suffer penalties,” Waterhouse explains.

Production can be monitored from anywhere with an internet connection but the biggest step forward came when the reality of its energy consumption was quantified. “We’ve boosted capacity by 120% and we’re processing production more quickly, but our energy needs have gone up by only 20%.”

E.ON has a comprehensive checklist for all businesses thinking of expanding.

“About 20% of our new business customers are new starters, companies being created in the new economy, but

ENERGY

the majority of our customer requests come from the expansion of current business” says Matthew Barrow, Business Development Manager.

Matthew advises that any business considering expansion should consider the following points: Determine how much power you need, today and tomorrow – so build in future requirements.

Think about timescales; a big site or an installation in a complex thoroughfare might take nine months or more.

Be clear on WHY you want it – very few businesses are the same; we’re very happy to take the time to talk through real needs and to ensure the right solution.

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What the people behind these companies have in common is the talent, tenacity and ambition to scale-up their operations.

Implementing growth plans often means hiring more staff, buying new machinery, making acquisitions or

56 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

owners can or want to self-fund their expansion plans, particularly if it means putting down millions of pounds upfront at additional risk to their personal finances or assets. And, realising the importance of being adequately capitalised, not all business owners can or want to build their businesses on debt alone.

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TROL & AUT ON O C L l ctrica Ele

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Big imagination

I

Nick Frank of Frank-Partners reveals how The Internet of Things (IoT) is all marketing hype and of little value or relevance to SMEs without a little imagination.

t may be a question of perspective, but the fact of the matter is unless you do something with the data generated by these technologies, then there is no added value.

It’s not that these capabilities are important to the future of manufacturing.

I believe quite the contrary. The ability for equipment to generate and collect data is increasingly blurring the distinction between products and services, such, that these terms may well disappear in the next 10 years. Instead there is

So although it’s important for businesses to explore this capability, it’s not really the technology that is the limiting factor - It’s our own imagination

58 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

an increasing emphasis on the outcome and customer experience. So although it’s important for businesses to explore this capability, it’s not really the technology that is the limiting factor. It’s our own imagination.

The challenge is to have such a deep insight into how our customers make money that we can start to imagine how to use data to make a difference to their profitability.

Some call this “service thinking”, but the really big leap is to engage our imagination. However, most of the leading examples of service thinking involve big companies with complex engineered products such as jet engines, weapons systems or vehicles. But it’s not only big companies that have imagination.

I recently met with Gerard Shaw, who is MD of a small Northern Irish company that style themselves as “cloud data innovators” with its recently introduced Web Portal. Shaw went out of his way to explain that all of the imagination comes from his customers.

His expertise are an enabler, to create simple hardware/software platforms that collect and make data available for clients. His goal is to find people with big imaginations and insight.

He gave me a number of

seemingly everyday mundane examples where companies have done this.

Take a dairy cattle farmer. The yield of milk can be boosted by 30% if a cow has the right balance of additives supplied in the form of nuts. It’s so important to the farmers business, that the feed supplier guarantees to ensure nuts are always available, but this causes them huge logistics cost when there is an emergency. Someone with insight and imagination realised that adding a simple monitor to the nuts feeder and putting the data into an easily accessible database in the cloud, could enable farmers to ensure their cattle always have the optimum milk output.

In addition, the feed supplier can see delivery problems before they happen.

A simple IoT solution created through imagination that impacts the profitability of the farmer and the feed supplier.

Another example Shaw identified with a third party maintenance company was air-conditioning units. It realised it could provide a superior service, at a lower cost that increases product revenues by collecting two standard outputs: firstly, whether a unit is running; and secondly, by measuring the pressure across the filter. Through a simple plug and play solution and web portal application, the firm can now see failures and react before its customers report it. It can see poor performance and make a planned visit, or seeing such poor performance it can recommend the sale of a new unit.

A third example was the maintenance of submersible pumps in landfill sites to prevent contamination of the water table.

Remote monitoring enable the site’s operations team to monitor performance to ensure expensive regulatory fines are avoided. Add to this a weather forecast on rain, and alerts could be taken to take preventive action where pump performance was known to be marginal.

These are all solutions created by small businesses that have deep insight into their customer’s needs. None needed any new technology. According to Shaw, the key is to understand the one or two critical parameters to be monitored that will make a difference.

So before rushing out and investing in the IoT, sensors and fancy analytics, perhaps a first step is to gain insight into what will make a difference to your customer’s business and then engage your imagination to see how to get there.

Frank-Partners

Manufacturing SERVICES

Service thinking Nick Frank, Founder of Frank-Partners, explains to why service thinking is the pathway to business growth.

‘‘I

am an industrial person”, Nick Frank tells and before starting his management consultant career, Frank worked for more than 25 years as a senior manager in industry.

He graduated with a mechanical engineering degree from the University of Southampton and started his professional training with Xerox Corporation. Xerox sponsored Frank to complete an MBA at the Cranfield School of Management.

Additionally, Frank occupied roles at Textron Fastening Systems and Husky Injection Molding Systems. In his extensive experience, Frank has learnt the value of service thinking and in turn set up his own consultancy to help clients improve their profitability.

“A few years ago I went into consulting and as a consultant I help clients find their pathways to business growth using service thinking, I mean really getting inside the customer’s business processes to understand why they are successful.”

Frank deconstructs the concept of getting inside the customer’s business practices, he says, “Understanding the business challenges that keep them awake at night, as opposed to asking ‘what do you need Mr/Ms customer?’ Which is a very superficial way of understanding their business processes and how they make money.

“If you do that, you can find the products, and services to make a big difference to your customers, and therefore create a better, more profitable, sustainable future for yourself through service thinking.”

Frank is passionate that servitisation has the potential to help manufacturers grow their businesses exponentially. He says, “Getting more intimate with your customer, and not just in how they use your product, but how the outcome it delivers influences their business.

If you can understand that to the extent that you can design your service or products differently for your customers you can make a lot more margin.”

He provides an example in fasteners, “In the fastener world, the cost of a part itself might be 20% of the total cost, all the logistics including time, quality and engineering, only makes about 30% of the total cost. The vast majority of the cost is in the time you spend assembling that unit.

“If a company can come along and create a fastener that allows you to assemble something three or four times faster, the saved time far outweighs the cost of the product.” Frank maintains that understanding all the processes of your customers business from

In the future I imagine we will stop differentiating between products and services, and focus more on solutions, outcomes and customer experience

start to finish can allow you to innovate and tailor-make your service or product for the client.

“This shows you the power of intimacy and customer loyalty. You are more entwined with the customer allowing you to drive growth. The key thing is not about the service, it’s what it allows you to do,” adds Frank.

However, persuading manufacturers the value in understanding the benefits in service-thinking is easier said than done.

Many organisations in the sector are steeped in a product culture and tradition, which causes problems in driving change.

“If you talk to someone who’s been running a business for 30 years making stuff, they’ve always made stuff, they don’t quite get this service stuff because it’s intangible.”

However, Frank sees the sector moving past these challenges as products start to become digitalised.

Manufacturers are getting the opportunity to experience the concept of connected products in their everyday lives on their iPhones. He elaborates, “They can see all the things that they can do with apps and how all their electronic devices are automatically synched. And they can see the same digitalisation trend in their products, combined with the internet, is starting to blur the lines between the hardware and services. We are now at a time when the manufacturers who can combine Service Thinking with these new IoT capabilities, will be able to deliver more value to their customers” What does Frank see for the future?

He concludes, “In the future I imagine we will stop differentiating between products and services, and focus more on solutions, outcomes and customer experience.”

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 59

The Internet of Things

Manufacturing SERVICES

How is the IoT likely to affect you?

Most probably in healthcare first, with the monitoring of your heart’s health, its beat, your digestion, almost every metric of your body that can be measured will be with IoT. Bluetooth-enabled pills have the ability to monitor your organs and nanorobots your blood.

Both will be connected to the internet to capture every moment of your being. Insurance companies will start demanding it, and setting your premiums accordingly, and your death date may even become accurately predictable.

MSTLN steering committee member Thomas Power looks at on where the internet was, is and will be.

T

he first stage of the internet roughly 1994 to 2004 – could best be summarised as capturing and organising data, the ‘decade of search’.

I would argue that there is only ever one (principal) winner for any given decade, and the escalating popularity and ultimate omnipresence of Google saw it easily take the crown as the winner of this first decade.

The second stage - 2004 and 2014 – could best be described as the social decade, sometimes referred to as the ‘Internet of People’ (IoP).

Platforms such as LinkedIn; Facebook; Twitter; Pinterest; Instagram; Google+; WhatsApp, and more recently Snapchat offered the world seamless connectivity.

It was also when data truly became mobile, no longer sitting on hard drives but migrating to server farms and the cloud.

Facebook was easily the winner for this second stage, with pretty much

60 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

all of us with access to a smartphone - all 1.4 billion of us – having interacted with the platform in some form or another.

We have now just entered the third decade of the internet – 2014 to 2024 – a decade that’s best descried as one where everything becomes connected to everything else, or the ‘Internet of Things’ (IoT).

This is a time when everyone is connected to everyone else, everything is connected to everything, everyone is connected to everything, and everything is connected to everyone.

And they’ll be no hiding places…

With the monitoring of your heart’s health, its beat, your digestion, almost every metric of your body that can be measured will be with IoT Second is likely to be your home. Your gas, electric, water, waste are all likely to be connected with everything measured; optimised; checked; double-checked, and reduced to the minimum to optimise your property’s consumption. That’s not forgetting your car which will be plugged in outside.

Third is your office. With lighting; air conditioning; telephones; coffee machines; photocopiers; laser printers (if we’re still using paper that is); all connected to the cloud and data captured for recall purposes.

Next is your industry. Every transaction, every shipment, every movement, every notification, every replacement, all will be continuously managed and updated in real time.

Finally, where you reside. Everything mentioned above will pass data on for analysis to manage factors such as traffic congestion; air pollution; infrastructure; movement of people and more.

Right now it’s probably hard to imagine such a world, but in reality we’re already well on our way there and it may arrive sooner than you think...

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Siemens

Manufacturing SERVICES

information needs to support, for example, accounting and management functions are demanding that information not only be available, but that it is accessible in many forms (including in a more visual format) on many devices.

In addition, as new data gathering and access options open up within the industrial world, so do the risks associated with it. Security issues are coming more to the fore as organisations seek to protect their valuable data integrity from unauthorised access by staff and, in some cases, competitors.

Such concerns are driving solutions in this area so companies keen to embrace the advantages of the smart data they are generating are not compromised by a lack of control and access.

Making the most of data

Making the most of data Paul Hingley, Data Services CMR Business Manager at Siemens UK & Ireland, tells why growing data volumes are only as useful as the ability to use them effectively.

A

s ever growing volumes of industrial data are created, so the spotlight focuses upon the way it is accessed, handled and, ultimately, used. While the term Big Data appears to be a recent buzzword, Siemens already has a long history in helping companies collect, disseminate, understand and utilise large-scale data volumes across many industrial sectors.

However, while the ability to access more and more industrial data via numerous devices can be viewed as positive, nonetheless growing data volumes are really only as good as the ability to use them intelligently. Mining data in the right manner to inform operational efficiency objectives or direct strategic decision-making for industrial manufacturers or original equipment manufacturers (OEMs) has to

62 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

be the end goal to drive maximum plant transparency, equipment effectiveness and productivity.

In important areas such as industrial traceability and verification which are critical pre-requisites within the pharmaceutical and airline manufacturing industries, the guarantee of product traceability to support patient safety, or immediate access to vital part numbers as part of the production process are primary considerations.

Accessing smart data streams, making them relevant, archiving them and recalling them when required, sits at the heart of information systems that underpin efficiency, performance and intelligence-led decision-making within the industrial environment.

Likewise, it is not just factory and production data that is increasingly sought by companies. Growing

Presently being piloted with two largescale UK manufacturers, Siemens’ new ‘Plant Cloud Services’ platform is designed to enable industrial customers to create apps to understand data drawn from myriad solution and process sources. It can be translated into intelligence-based information that can underpin operational and strategic decision-making in many critical areas, such as predictive maintenance and asset and energy management.

Plant Cloud Services is an enhancement to the existing Siemens’ Plant Data Services market offering.

Based on the SAP HANA Cloud technology platform - an open IT ecosystem will be created so that industrial users, OEMs and application developers can access the platform via open interfaces and use it for their own services and analytics. Online monitoring of machine tools and industrial robots, or industrial machinery such as compressors and pumps will be possible.

Using the cloud platform, OEMs will be able to create their own applications to exploit the open infrastructure for data analytics and benefit, for example, from the ability to truly optimise the operation of machinery fleets.

As a primary automation technology supplier, Siemens envisages the Plant Cloud Services platform will make a significant contribution to driving forward the digitalisation of industrial automation capability and help the manufacturing sector make the most of the data at their fingertips.

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ERP:

not the right question, not the right answer

To a man with a hammer, every problem looks like a nail. And much the same goes for ERP systems, says Cimlogic’s Fraser Thomson.

IT contributing editor Malcolm Wheatley reports.

A Don’t complicate things with an all-embracing solution that aims to do everything

64 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

report published last September reckoned that 60% of UK firms were dissatisfied with their ERP systems—a fairly damning indictment, by any standard.

Worse still, despite 80% of the 1,500 businesses surveyed reporting that their ERP systems were critical to their business performance, over half rated their current systems as either “adequate” or “basic”.

Nor are such figures a total surprise.

The Manufacturer’s own annual survey of IT intentions within UK manufacturing industry, for instance, regularly highlights the fact that large numbers of manufacturers intend to upgrade or replace their ERP systems in the next year. And clearly, such intentions are hardly indicative of manufacturers that are highly satisfied with what they have at present.

But here’s a thought: suppose that an upgraded or replaced ERP system isn’t the answer?

Cimlogic

It’s a thought thrown into sharp relief

by Fraser Thomson, a manufacturing execution consultant at Cimlogic, a Yorkshire-based manufacturing execution system consultancy and implementation specialist.

“It’s something that we hear all the time,” he explains. “Companies get sold on the idea that ERP systems are a ‘one-stop shop’, and that additional systems aren’t required. But then they find that there are issues that ERP can’t help them with.”

Such as? Thomson pauses, choosing his words with care. In essence, he sums up, it’s all to do with immediacy of information, and immediacy of action. In short, the closer you get to a requirement for real-time information or action, the less appropriate an ERP system will be.

Which is fast becoming a headache for a growing number of businesses, he

Depending on the problems you’re facing, you might need a full-blown manufacturing execution system, but don’t automatically assume that you definitely will stresses, as real-time information and action is very much on their agenda, and for all sorts of reasons: competitive pressures, customer service and satisfaction objectives, workflow and recipe compliance requirements, and internal quality control and productivity improvement initiatives.

“Think about it,” he urges. “Your realtime quality information says that quality is trending out-of-spec, and that if something doesn’t happen, you’ll shortly be producing scrap. But what, exactly, should you do? Or a production line has gone down, jeopardising a customer order. It’s possible to move the order— plus its associated raw material and packaging—onto another line, but which line, precisely? You need a real-time finite scheduling solution, and your ERP system doesn’t have one.”

No quick fix

Energy usage and—in some industries— material usage are another common real-time requirement, adds Thomson.

“By the time the utility bill arrives, it’s far too late: the opportunity to link real-time energy consumption to realtime production has long gone,” he stresses. “What manufacturers want to know is what they can do today, right now, to improve energy efficiency.

And the starting point, in many cases, is to build up a picture of how energy usage varies with order mix and environmental conditions, and so be able to make adjustments.

ERP systems, with their standard costings and assumed bill of material inputs, simply don’t offer that capability.”

Which isn’t to say that some of them don’t try. But such attempts, through a variety of “ERP add-ons”, often leave much to be desired, observes Thomson.

“Partly, the problem is the way that ERP systems plan,” he explains. “They lump orders into ‘buckets’ of time—daily, weekly or monthly—and then lose all visibility of the actual point of manufacture until the works order is posted as complete. Partly, too, it’s that they make claims that fall short of what manufacturers really require: “shop floor data connectivity” often turns out to be someone on the shop floor with a terminal, typing information in—and not barcode-driven data collection, or hard-wired connections to SCADA systems and PLCs on assembly and bottling lines. And partly, it’s about the price-tag: ERP add-ons generally involve paying ERP-based prices, which are about three times what you’d pay for equivalent functionality in a purpose-built system.”

IT in Manufacturing

Start with the problem

So what’s the answer? A “purposebuilt” system? And if so, purposebuilt to do what? Again, Thomson chooses his words with care, keen to avoid any suggestion of superficial diagnosis or misleading labels. In particular, he emphasises, labels such as “manufacturing execution system” in practice embrace an enormous breadth of functionality. Some of this functionality will be relevant for the issues faced by a given manufacturer; some will not.

“There isn’t a ‘one size fits all’ instant solution,” he stresses. “It’s really all about appropriateness, and where to draw the line between the factory floor and the enterprise. At the end of the day, you want manufacturing-specific people working with manufacturing systems on manufacturing-specific tasks, and enterprise-level people working with enterprise-level systems on enterprise-level tasks: trying to collect PLC or SCADA data with an ERP system is using a sledgehammer to crack a nut—and a very expensive sledgehammer at that.”

And once manufacturers remove the blinkers that let them see the world only in terms of ERP systems, he points out, it’s surprising just how much manufacturing-specific factory-floor software is out there, under a variety of labels: manufacturing execution systems, quality systems, OEE systems and so forth.

And better still, he stresses, it’s manufacturing-specific factory-floor software that has been purpose-built to undertake specific tasks, and perform those tasks to a high standard. Put another way, trying to do the same thing with an ERP system would involve an element of re-inventing the wheel— and still not yield a solution that was as good.

“Start with the problems that you’re experiencing, and look for a solution that’s appropriate as a solution to those problems—a finite scheduling solution, a quality solution, an OEE solution, or a data collection solution,” sums up Thomson. “Don’t complicate things with an all-embracing solution that aims to do everything. Depending on the problems you’re facing, you might need a fullblown manufacturing execution system, but don’t automatically assume that you definitely will.”

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 65

Microsoft Dynamics

IT in Manufacturing

businesses are starting to use.

“Make no mistake,” insists Masson.

“Together, these systems of intelligence are transformative, enabling manufacturers of all sizes to level the playing field in terms of how they compete with the world’s industrial giants.”

And the acronym SMAIC usefully sums up how these cutting-edge technologies differ from their yesteryear counterparts, he adds. “‘S’ for ‘social’ — because that’s how millennials work. ‘M’ for ‘mobile’, because mobile technology is easier to

It’s vital to have the basics in place first

Systems of intelligence are gaining a lot of traction. But before manufacturers can exploit them to their full, it’s important to put the right foundations in place, Microsoft’s Colin Masson tells IT Contributing Editor Malcolm Wheatley.

U

ndeniably, small and mid-size manufacturers play a vital role in the economy, says Colin Masson, Microsoft’s global industry director for manufacturing and distribution.

“A lot of innovation and disruption comes from small and mid-size manufacturers,” he notes. “That’s because they know that they can’t compete on economies of scale, and so must compete through other means. Building deeper and more loyal customer relationships, for instance,

You have to have other systems in place to serve as the foundations, before systems of intelligence can deliver anything of value: specifically, systems of record, such as ERP, and systems of engagement, such as CRM

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or by offering differentiated services alongside innovative products, or adopting approaches such as rapid prototyping, additive manufacturing and servitisation. Or being more efficient, and using analytics for predictive maintenance, or the Internet of Things for remote monitoring.”

But despite this, small and mid-size manufacturers face a considerable challenge. In short, not only differentiating themselves from their larger competitors, but doing so profitably.

Moreover, he adds, they must also view their businesses through the lens of a very different set of metrics, supplementing inwards-looking measures such as Overall Equipment Effectiveness (OEE) with outwards-looking measures such as the Net Promoter Score concept, which looks at how likely a business’s customers are to recommend it to other potential customers.

To the rescue: technology. And in particular, technology in the form of “systems of intelligence” — in the shape of high-end analytics, mobile deployment, the cloud, and the various customer-facing and employeecollaboration “social” tools that

adopt and leverage; ‘A’ for analytics that are ‘baked in’ to products, rather than requiring people to become business analysts, ‘I’ for the industrial Internet of Things, and ‘C’ for ‘cloud’ — because the cloud enables manufacturers to deploy solutions more quickly.”

But if having SMAIC-based systems of intelligence is the endpoint, it’s not a journey with many shortcuts, warns Masson.

“It’s vital to have the basics in place first,” he stresses. “You have to have other systems in place to serve as the foundations, before systems of intelligence can deliver anything of value: specifically, systems of record, such as ERP, and systems of engagement, such as CRM.” In short, sums up Masson, if manufacturers don’t first of all have in place the basic systems necessary to make and keep customer promises — systems that control the transformation of inventories of raw material into highquality manufactured products on predictable and achievable lead times — then any effort put into systems of intelligence runs the risk of being wasted.

“The basics, in the shape of ERP and CRM, aren’t very fashionable,” he concludes. “But you have to have them. And if your systems of record, systems of engagement, and systems of intelligence all come from the same vendor, then it will make the overall journey shorter and simpler.”

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Vickers Laboratories reveals how Exel was the unanimous choice as an IT system to fit the world of hazardous chemicals.

E

stablished in 1969, Vickers Laboratories is a ÂŁ3m turnover company supplying a diverse number of markets including primary and secondary education, pharmaceuticals as well as specialist niches including the highly regulated environment of dangerous goods.

Goods are either purchased in bulk and repackaged into smaller amounts and sold on, either as own brand or third party, or they are purchased, mixed to form new products and then packaged into required sizes. With a product range of 2500 plus items and over 6000 SKUs, orders ranging from 10ml bottles to

It’s a toolkit which has already helped us improve a number of ways we work as a company and offers us the potential to keep making improvements as the business grows Rob Brown, IS Manager

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Exel

1000l batches, and with raw materials being supplied in sizes from 0.01gm to Tonnage Quantities, some of which are hazardous and therefore need to be stored in specific ways to comply with ever changing regulations, Vickers is a complex business to run successfully.

Understandably, according to IS manager Rob Brown, “finding optimal use of the company’s capacity is our main challenge because we have to balance specific order requirements against Economic Batch Quantity considerations which vary depending on the shelf life of the raw materials involved as well as the finished product.”

As senior developer Mike Grimshaw adds, “We also have to factor in that different products require different cleaning and set-up times, with certain products actually requiring an interim

test stage to check that the vessel is free from contamination.”

Such a highly regulated business requires rigorous processes to be in place and any IT system therefore has to be highly customisable to ensure compliance and deliver value. For Vickers, this was a 1970’s off the shelf COBOL-based system, which had continually been modified in-house over the years. For many reasons, not least the recognition of just how much the system relied on Grimshaw, a decision was made to implement a modern, fully integrated solution. A long list of twelve vendors was reduced to four from which EFACS E/8 from Exel Computer Systems was the unanimous choice as it offered the best functionality, technology platform and ease of customisation to fit the world of hazardous chemicals.

IT in Manufacturing

Implementation was complicated by a number of internal factors but it was worth getting right because when EFACS E/8 finally went live it did so achieving minimal disruption to daily business and delivering benefits from the outset due to the inherent workflow built into EFACS E/8, which significantly tightened up what could and couldn’t be done at each process step.

Every department now benefits, not just from the real-time visibility and availability of information within EFACS, but also the ease with which this information can be communicated, most notably in the dedicated printing and dispatch area. For example, re the latter, now all essential data such as service level, product description, hazardous warning information, materials safety data sheets (MSDS) is automatically generated, and where necessary, can be transmitted direct to the courier/ transport company.

With this in mind Grimshaw offers his concluding thoughts on what EFACS E/8 has brought to Vickers. “With EFACS E/8, we have the ability to tailor our system to meet the requirements of our customers while maintaining the benefits of a commercially developed and supported integrated package.”

To this, Brown adds, “It’s a toolkit which has already helped us improve a number of ways we work as a company and offers us the potential to keep making improvements as the business grows.”

May 2015 | Issue 4 | Volume 18 | www.themanufacturer.com 69

Reply Group

‘‘SaaS-ifying’’ the Supply Chain As UK Manufacturing slowly emerges from the global recession, Jez Tongue of @logistics Reply explains how cloud computing presents a new opportunity for manufacturing supply chains.

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oftware as a Service (SaaS) is rapidly becoming “business as usual” rather than a stop gap or contingency, and it is the supply chain and distribution arena, seemingly the last industry sectors for new technology to penetrate, that are set to benefit hugely.

Today’s manufacturers face an extremely complex and challenging environment for logistics and distribution.

With the provision and return of goods via multiple channels being ever more chaotic and sporadic, the continuing skittishness of the retail sector has meant that manufacturers are under huge pressures to meet increasingly tight SLA’s and customer expectations. This has increased uncertainty in supply chain

70 www.themanufacturer.com | May 2015 | Issue 4| Volume 18

activities and prompted a rise in small, temporary logistics contracts or supply chain collaboration projects, igniting interest in flexible, low risk applications offering rapid-time-to-value, minimal investment and IT interruption and the option to be “switched on or off” in line with demand.

Too many businesscritical, back-office operations run on IT infrastructures that are essentially fixed, off-theshelf products. Based on an OpEx, “pay as

IT in Manufacturing

you grow” payment model, the SaaS model has the ability to scale as a business grows in capacity and complexity, but more compellingly it provides businesses with the option to downscale and pay less if business is slow. With an on-premise supply chain execution solution, for example, users are required to invest heavily in a fixed number of licenses, servers and IT people, an on-demand solution aligns the operational requirements to the number of functions activated on the system so only the “capacity” used is paid for.

These subscription-based solutions are also a cost-effective route for small and medium sized manufacturers because of their lower barriers to entry. Rather than a significant CapEx investment, a hosted platform requires minimal upfront cost.

Instead, operating expense is smoothed over a number of business cycles, in which users pay only for the capacity and features they use. On-premise, licenced software solutions also always come with a recurring, annual support and maintenance cost – typically 20 to 25% of the cost of the original licences – plus the requirement to up-grade to the latest version of the application every two to three years. Although software licences have been bought and paid for by this time, there are always up-grade-related costs in the form of hardware/third party software up-dates, new up-grade implementation services and training on new functions and features, for example. With a cloud solution, such related burdens and costs are removed, as upgrades, maintenance and support - both hardware and application-related - are provided incrementally and invisibly as part of the service.

A major benefit of an on-demand platform is that it is quick and cost-effective to set-up – in some cases it can be up and running in four to six weeks, with the system paying for itself in less than six months. Here, flexible automation is built into the project to support sustainable growth in line with the business’s operational performance and needs, resulting in minimal revenue and resource interruption as well as minimisation of any “service level dip”. This ensures convenience for businesses with a limited budget for hardware and software investment, and limited IT personnel. This speed-to-benefit is a major differentiator from traditional supply chain projects, which can take many months to go live and many more to deliver any business benefits or efficiencies. A hosted SaaS platform is ideal for operations requiring rapid start-up and for those which operate in uncertain scenarios or with very high transaction requirements.

Increasingly suppliers are using the cloud to manage peak demands or one-off projects.

Ultimately, and by its very definition, with SaaS, the quality of service is paramount, meaning the buyer is always in control. Because of the monthly payment method, a SaaS vendor has to constantly delight its clients – not just in the pre-licence purchase phase. If the consumer of the service does not want to continue, they simply stop paying the monthly bills. That is what I would define as the ultimate control.

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Terry Scuoler - EEF

TALK OF THE INDUSTRY

We have elements of an industrial strategy in place which have, to date, successfully supported sectors of manufacturing and helped them to thrive

If it isn’t broken EEF CEO Terry Scuoler shares why he thinks the next Government should continue to bolster growth and support investment to push economic recovery.

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hile the recent political brawling may not have been the most edifying sight, attention must quickly revert back to the serious business of long-term planning and building on the growth we are currently experiencing. If Britain is to compete globally as a country we must therefore continue to invest. One of the key deliverables of that investment must of course be improved productivity.

A key driver of productivity is, of course, people. Our employees need to be highly skilled, motivated and ready to learn new ways of working and capabilities. At EEF we are working with Government to develop a new National College for Advanced Manufacturing, which alongside other institutions, will help train the experts who will drive our economy towards becoming a global powerhouse. These are the sort of initiatives that are needed to help boost our nation’s productivity.

Some of the measures announced in the last Budget, if carried through by the next government, will encourage further investment in innovation and research

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and development, especially the planned support for world class technologies and easier access to R&D tax credits for small firms.

All parties, however, must embrace long term planning for our economy and our industrial future.

These are my top priorities for whoever enters 10 Downing Street on the May 9th.

First, if it isn’t broken please don’t try to fix it. We have elements of an industrial strategy in place which have, to date, successfully supported sectors of manufacturing and helped them to thrive, of which the most obvious is the automotive sector. We now have funding in place for centres which specialise in supporting innovation between industry and

our universities. We have commitments to put employers in the driving seat on apprenticeships so that they buy the training necessary ensure we have the most skilled employees. Greater support for exporters to improve our trade performance is now also available.

In essence, a new administration must avoid the temptation to tinker with what is working well.

Secondly, Government can make it much easier to do business by ensuring we have world class infrastructure.

Despite considerable promises, one of the blemishes on the coalition’s record is a failure to deliver significant improvements in our infrastructure, particularly our strategic road network.

Thirdly, red tape. I recently spent time in Brussels with the Commission First Vice President, Frans Timmermans. He is on a mission to persuade the EU to do less. Everything the EU does should be about supporting growth, jobs and industrial renewal. He has taken a lead on this from the British example of one in one out and, more latterly, one in two out. It remains to be seen how successful he will be.

Finally, we may or may not be about to engage in a referendum on Britain’s future in Europe. Manufacturing businesses large and small could not be clearer that Britain’s continuing membership of the EU creates vital jobs and wealth. That is why Britain must throw its full weight behind helping the EU deliver reform and a trade deal with the US, which would unlock billions of pounds worth of opportunities for British business.

So, Prime Minister, please continue to pull on the levers of growth, support investment and continue to drive economic recovery.

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