The Manufacturer December/January 2014/2015 by The Manufacturer

Sector Focus A tasty world How technology is helping the food and drink sector maintain its global competitiveness

Hot Topic Another giant leap What it takes to land on a comet The future of through-life Just how important will through-life engineering services be in 2015?

Special Feature Swept away How the world’s largest street sweeper manufacturer is building on its success

Exports Indian express What’s the fuss about exporting to the subcontinent?

Manufacturing Leadership The Year of Consolidation After a big year in 2014, what can manufacturers expect in 2015?

Also in this issue The top techs to look out for in 2015 Is there a place for paper in the future workplace? How small businesses can make the most of an £80bn offshore wind market In partnership with:

INTERVIEW Melanie Leech Director General, Food & Drink Federation

www.themanufacturer.com | December 2014 / January 2015 | Vol 17 Issue 10

Welcome

EDITOR’S INTRODUCTION

ecently, while at a dinner in London, I was speaking with a colleague who works in the UK steel industry. We were discussing the upcoming schedule for the magazine in 2015. She was enquiring if there was scope to cover an initiative she was trying to get off the ground in the sector, and began mentioning how, although she was based predominantly in the steel industry, it could apply across many different manufacturing sectors. This led to our discussion moving to the fact that, despite her main focus being centralised within her own sector, it was encouraging to see and read how other areas such as textiles or food and drink (p42) were dealing with some of the same issues. The gist of the conversation came down to knowledge sharing – something we both agreed was critical to the future prosperity of UK manufacturing.

I thought about this conversation many times during the two biggest – the days of the year for us at Manufacturer Directors’ Conference and the Manufacturer of the Year Awards (p32). It’s a reassuring sign to see so many high-level figures from UK manufacturing speaking openly about their businesses, sharing their knowledge and, more importantly, their vision for sector growth. On top of this, to see so many manufacturers celebrate with each other in Birmingham, the heartland of British manufacturing, was extremely uplifting and a sign of how a sector, which was only recently walking on fragile ground, is now shouting and celebrating its success and undeniable economic vigor.

Celebrating the very best of UK manufacturing at the Week of Excellence 2014

The team at , myself included, have the privilege of being able to travel around this country and see first hand the amazing work being done inside the nation’s factories. The incredible people who believe one hundred per

cent in what they are doing and the potential it has to drive this country further out of recession. And it was an absolute delight to see what was only a handful of these companies and individuals celebrated as they walked on stage to receive their awards in this year’s Manufacturer of the Year Awards. I would like to personally congratulate all of this year’s winners, particularly Xtrac, who took out the top honour of overall Manufacturer of the Year. As a judge myself this year, I can say confidently that they had some very strong opposition, and I’m sure next year will be even tougher. To all of the entrants, finalists and winners, from everyone at , well done and congratulations on making it through another amazing year of making. It was a mixed year, but confidence is still high, and with technology and innovation gathering pace like never before, I’m sure 2015 will be another memorable year. Thank you for a terrific 2014.

Callum Bentley Editor

December/January 2014-15 | Issue 10 | Volume 17 | 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 Peters

Deirdre Fox

Tony Hague

Richard Lloyd

MD, Power Panels Electrical Systems and Chairman of the Midlands Assembly Network

Andrew Churchill Managing Director, JJ Churchill

Simon Edmonds Director, the Catapults Programme

Steve Evans

3rd Year Logistics Apprentice, MBDA and ’s Apprentice of the Year 2013

Ross Meikle

Director of External Affairs, EEF

Director of Strategic Business Development, Tata Steel

Director, Siemens Congleton Facility

Anna Schlautmann, 21:

Hywel Jarman

Philip Greenish CBE

2 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

Ben Taylor Assistant CEO, Renishaw Plc

Dave Mooney Managing Director, Drallim Industries

Pamela Petty Director of the EPSRC Centre for Innovative Manufacturing in Industrial Sustainability

Quality Improvement Manager, Hayward Tyler and ’s Young Manufacturer of the Year 2013

Global Manufacturing Director, Accolade Wines

CEO, the Royal Academy of Engineering

Managing Director, Ebac Group

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

Adding value at every turn.

With access to more than 4 million product lines, Brammer is the UK’s leading maintenance, repair and overhaul technical specialist distributor – our unrivalled range is only the start of the story. Where we really add value is through our array of business solutions which help our customers improve production efficiency, reduce working capital and lower total acquisition costs. We’re committed to adding value at every turn.

Call 0870 240 2100 or visit www.brammer.co.uk

ABOUT US

Meet the team Nick Hussey Chairman 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

David Farrow General Manager 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

Henry Anson Sales Director 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

Callum Bentley Editor 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

Victoria Fitzgerald Features Editor 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

info@hennickgroup.com www.hennickgroup.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

Art Director Martin Mitchell

martin@opticjuice.co.uk

Jonny Williamson Web Editor 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

Designers 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

s.hough@hennikgroup.com

Barbara Fitzsimons Production Editor Barbara joined in July 2014 after working in production and content management for over eight years in London and Scotland on industry and scholarly publications. Barbara produces and contributes to print and online content and has an interest in food and drink manufacturing and automation. b.fitzsimons@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

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

Editorial

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.

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:

Cranfield University EEF Institute for Manufacturing, University of Cambridge

Workshop storage like no other. Built to Last in the UK Discover the full story at builttolast.bottltd.co.uk

December 2014 / January 2015

08 News and regular columns A summary of manufacturing news and events with commentary on industrial research and policy 24 Out & About visits Armitage pet care, the people at Norfrost, and catches up with Nikki Kaufmann from Normal 26 Best of Online What you wanted to read most about ’s November website 28 Hot Topic: Another giant leap follows the first landing of a satellite on a comet in November and looks at a thriving UK space sector and what opportunities it holds 30 Hot Topic: The future of through-life engineering services Will Stirling explains why through-life engineering services is arguably the most important branch of engineering in 2015 38 Special Feature: Johnston Sweepers Callum Bentley visits the manufacturer of road sweepers and street sweepers in Dorking 42 Sector Focus: A tasty world Ruari McCallion reports on changes in technology on quality, contamination and security in the supply chain for the food and drink sector 48 Interview: Hungry for more Director General of the Food and Drink Federation, Melanie Leech talks to Callum Bentley about the Federation’s high and lows during her tenure 52 60 second interview James Selka, CEO of the Manufacturing Technologies Association

Pillar features Manufacturing Leadership 54 Learn to lean: Lean Management Journal Editor Andrew Putwain highlights some of the articles from the latest edition of the LMJ which focuses on exploring the ideas of being a good employer in a lean enterprise 59 EEF Conference: As eyes turn towards the next General Election, EEF’s flagship National Manufacturing Conference: ‘Make it Britain – manufacturing a renaissance’ brings together the who’s who of manufacturing Other topics in the section: Wind power: Dominic Brown, Head of GROW:OffshoreWind, talks opportunities and the need for small manufacturers to act now to take advantage of an £80bn future market and Kimberly Clarke talks taming aggressive solvents and David Topping, E.ON’s Director of Corporates, discusses the impact of peak prices on customers’ energy costs

Workforce & Skills 66 Manufacturing success: attended the second annual Advanced Manufacturing & Engineering Leadership Academy to hear the stories of women making headway in the industry

6 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

CONTENTS

68 Snapshots: Engineering apprentices prove their weight in gold, a free skills service is launched for manufacturers and we celebrate the industry’s top apprenticeship employers

Finance & Professional Services 72 Right shoring: Identifying the legal issues: Ruth Andrew, Senior Associate at Pinsent Masons, debates the issues surrounding the emerging trend of right shoring Other topics in this section: David Atkinson, Head of UK Manufacturing at Lloyds Commercial Banking, shares the commitment to ensuring British manufacturing stays healthy and competitive in the global market

Manufacturing Technologies 76 Fast food: Changing consumer demands is one of the challenges facing food and beverage producers. Alan Spreckley, channel development manager for ABB Robotics, advises how these can be resolved

IT in Manufacturing 78 Five top techs tipped to go big in 2015: If you’re looking to change the way your business does things take a look at these technologies 84 Mainstream: Microsoft’s Colin Masson tells IT Contributing Editor Malcolm Wheatley how Cloud is changing the world of analytics Other topics in this section: Tim Barber, European Business Director and Co-founder of Lighthouse Systems discusses the three misconceptions that are often connected with MES, and as Webtec grows, it turns to Epicor for an ERP system that would perform as its old software did, but would also be independent, fully integrated and with multi-country support 88 Talk of the Industry: Terry Scuoler discusses the results of a survey on the quality of UK infrastructure that will not come as a surprise as it confirms that the current situation is poor and even appears to have deteriorated in the last two years

OUTBOUND REPORT: Finance Realising and releasing asset value

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NEWS Chancellor of the Exchequer, George Osborne has delivered his Autumn Statement 2014 to the House of Commons, with a number of initiatives to help support SMEs.

resenting the UK as one of the “fastest growing of any major advanced economy in the world,” the Chancellor declared that there were more people in work now than ever before and forecast the deficit to fall by a half by the end of 2014 to 2015. However, he also said that there were still difficult

www.themanufacturer.com/news

Special Focus Autumn Statement 2014

decisions ahead to continue to lower the deficit and to cut debt. To make it cheaper for businesses to employ young people, from April 2016, employers will no longer have to pay National Insurance Contributions (NICs) for all but the highest earning apprentices aged under 25. This is in addition to the announcement made last year that employers won’t have to pay NICs for those under 21 from April 2015. A further £7bn has been ear-marked to create a ‘northern powerhouse’. Almost all (£6bn) is to be invested on roads to: reduce congestion; introduce new modern trains and 20% more capacity to end overcrowding; and develop HS3 to make east-west travel faster and double the number of northern cities to benefit from the government’s superfast broadband programme. The remaining funding will go towards building the region’s strengths in science with major new investments across the north. To help the UK remain the best place in the world for science and research, the Autumn Statement committed to a £5.9bn sustained investment in science that included £95m in order for the nation to take the lead in the in the next European

8 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

mission to Mars. Additionally, £235m will go towards a new Manchester-based science research centre called the Sir Henry Royce Institute and £20m will go on a research centre on ageing, which will be based in Newcastle. John Rowley, director at electronic assembly specialist SMT Developments, welcomed the increase in R&D Tax Credits to 230%, which he commented would “undoubtedly help cash flow and release money that can be directed into developing new process and products.” He was equally pleased to hear about the £45m support package for exporters, but noted that, though looking after first time exporters is important, there needs to be a similar focus on companies already trading internationally. Dr Colin Brown, director of engineering at the Institution of Mechanical Engineers, said that while the UK is leading the way in many areas of R&D, such as the creation and development of advanced materials, the nation lags behind in bringing new products to market and commercialising them. Something which “needs more support from UKTI and the Innovation Catapults to bring in business for these small companies,” he added. Ian Brinkley, chief economist at Lancaster University’s Work Foundation, declared that the extra support for apprenticeships is welcome but “does not seem to be well targeted”. He added that there will be “considerable deadweight from subsidising apprenticeships that would be provided anyway; investing directly in the apprenticeship system, such as the Trailblazers initiative is crucial to producing high quality and longer term improvements.”

MANUFACTURING NEWS

APPRENTICESHIPS

Bernard Molloy, Unipart Logistics’ global logistics director, has called into question some of the remarks made by the Minister for Skills and Equalities, Nick Boles during his presentation at The Manufacturer Directors’ Conference in November. Molloy commented that the Minister had fallen “well short” of industry expectations in terms of potential improvements and questioned the insistence of a 12 month minimum programme. “You cannot have a proper apprenticeship in anything less than two years, and if you want to learn properly about every aspect, then really three or four. Government must realise that apprenticeships are not just for 12 months, they have to be fundamentally structured properly; and the money being invested in apprenticeships currently is not going to the apprentices, it’s going to training providers who are, in my opinion, not up to the mark in providing proper apprenticeships,” Molloy urged. Luxury Italian car manufacturer, Maserati has partnered with the Centre for Entrepreneurs (CFE) to establish The Maserati 100. Launched as part of its centennial year celebrations, the list will recognise the top 100 entrepreneurs who are donating their time and resources to support the next generation of young entrepreneurs. Members of the public are invited to nominate individuals via a dedicated microsite. Nominations open on November 25 and will run for a month, closing on December 24. The final Maserati 100 list will be announced at a special event in early 2015 in London.

Sir Ben Ainslie and Robin Hancock MD of PLM at signing of agreement

TECHNOLOGY

Siemens PLM Software has teamed up with Ben Ainslie Racing to announce a landmark technology and innovation partnership ahead of the yacht team’s plan to compete in the world America’s Cup 2017. Siemens UK provide product lifecycle management (PLM) software products and, through its solution partner Majenta PLM, professional services. The PLM environment will enable Ben Ainslie Racing’s engineering team to create, manage and share the innovative designs relating to the boat design and build. The partnership is expected to last for a minimum of three years and will support the 22-strong design team’s 50,000 hours of R&D, alongside 150,000 hours of expertise to further the boat design and build.

MANUFACTURING STATISTICS

The UK economy is continuing on a healthy trajectory with the rate of growth stable in the three months to November, according to the CBI’s latest Growth Indicator. Also revealing that growth expectations are not as strong as earlier in the year, but are well above their long-run average, the study combined economic-activity data from a range of business sectors. The survey showed slightly stronger growth in manufacturing, with output up in 15 of the 18 sub-sectors, and growth in consumer & business professional services, which offset slowing growth in retailing. The resulting overall balance of +20% is little changed from October’s survey balance of +19%.

VSD+ COMPRESSOR IT’S SO ADVANCED...

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 9

NEWS www.themanufacturer.com/news

MANUFACTURING NEWS

APPRENTICESHIPS

Almost a third of BAE Systems’ graduate intake for 2015 (98 of 293) will join the company’s cyber security arm for the third consecutive year. The news comes as the threat of cyber-crime, whether by individual threat actors or nation states, continues to rise and the Metropolitan Police revealing it is facing roughly 54,000 reports of cyber fraud in the capital annually. Dr Scott McVicar, managing director of Cyber Security at BAE Systems Applied Intelligence, said: “High-profile cyberattacks continue to dominate the headlines and the continued growth of our business reflects that reality. We need to recruit growing numbers of bright, motivated individuals, particularly IT, engineering and physics graduates, that will work with our experienced team to identify vulnerabilities and manage the threat effectively.” The Digital Economy Minister Ed Vaizey has announced details of new industrydesigned short courses, alongside degree apprenticeships. Aiming to allow young people to complete a full honours degree alongside their employment, while paying no student fees and earning a wage throughout; the initiative is an effort to help fill the projected one million vacancies in the digital sector during the next decade. Marking the first degree apprenticeships to be launched in the digital sector, the qualifications are expected to suit people embarking on careers ranging from business analysis to software development and technology consultancy. The new programme includes a fully-integrated degree, testing both academic learning and on-the-job practical training, and has been co-created by leading tech employers and universities. The Institute of Advanced Manufacturing and Engineering (AME) is taking part in TeenTech, a series of events designed to get the ‘X Factor generation’ involved in science, technology, engineering and maths (STEM) and consider a career in industry. Lecturers, engineers and current students have come together to devise three experience days focused on creative thinking, product manufacture and marketing. Open to schools throughout the UK, each event will cater for up to 50 young people aged between 13 and 17. Teachers will be able to lead their student groups through the process of generating a viable idea, before looking at how that can be transformed into a prototype, and finally how it can be marketed and sold to a target audience.

George Osborne visits the Bentley factory

COMPANY INVESTMENT

Bentley has announced the latest phase in the biggest site development in its history. A further £40m investment will expand its headquarters in Crewe, with a new research & development centre, creating over 300 jobs in the process. The new 45,000 sqm-centre will include a dedicated styling studio, research & development offices and a technical workshop. The facilities will house 1,300 Bentley engineers and is the most recent step in preparing Bentley’s infrastructure to bring a new model of SUV to roads in 2016. Work on the new developments is expected to commence early next year.

Hague believes industry experts would rank the UK as one of the weakest of the technically developed European nations when it comes to automation and robotics

AUTOMATION

Increasing tax benefits, a greater understanding from banks and a longer term view on return on investment could all help the UK catch up in the automation stakes, according to Tony Hague, MD of PP Electrical Systems and recently named as one of The Manufacturer Top 100. Hague believes the nation’s industry still lags behind when it comes to embracing new technology and the benefits of robotics, despite recent economic reports suggesting a greater appetite to ‘close the gap’. “The use of robotics, harnessing their precision and stamina, coupled with an engaged and innovative workforce, is an essential strategy for long-term success, energy management and growth,” he declared.

10 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

...YOU MAY NOT BELIEVE IT COMES FROM PLANET EARTH. Space: the vertical design of the new VSD+ compressor saves a lot of it, with an exceptionally small footprint. Its unique permanent magnet motor is light years ahead. A 12% increase in free air delivery is a giant leap. And, with extremely low noise levels and up to 50% energy savings, the VSD+ is out of this world. Atlas Copco Compressors Phone: 0800 181085 Email: compressor.sales@uk.atlascopco.com Web: www.atlascopco.com/gavsdplus

NEWS www.themanufacturer.com/news

FUNDING & FINANCE

Sheffield is set to play a major role in a new, national advanced material science institute, announced by Chancellor of the Exchequer George Osborne in his Autumn Statement. Both Sheffield University and its Advanced Manufacturing Research Centre (AMRC) with Boeing will share in the £235m funding package for what will be known as the Sir Henry Royce Institute for Advanced Material Science. A further £61m has been allocated to the High Value Manufacturing Catapult, of which the AMRC is a leading member. Much of AMRC’s work in the Sir Henry Royce Institute is expected to focus on developments in powder metallurgy, aimed at improving the quality and capabilities of the technology, so that it can be more widely used in manufacturing. The Manufacturing Technology Centre (MTC) in Coventry is to play a key role in a £30m research programme which could revolutionise the design and manufacture of aircraft wings. The MTC is one of five centres taking part in the Aerospace Technology Institute’s VIEWS (Validation & Integration of Manufacturing Enablers for Future Wing Structures) programme, led by GKN Aerospace. VIEWS will examine and test technologies for wing design, manufacture and assembly which could reduce costs by at least 20%, as well as analyse wing architecture design, production tooling and advanced new materials including composites.

The right time Following the launch of the government’s 2014 Solar Strategy, there is an increasing emphasis on using commercial rooftops to generate electricity. The right partner NWT Energy specialises in large scale commercial solar PV investments and advice.

Lightning ?????? ????II stealth ??? ?????? ????? combat aircraft ?????? ?courtesy of image Lockheed Martin

GOVERNMENT

The Ministry of Defence (MOD) has signed a contract for the first production batch of four Lightning II stealth combat aircraft, to operate from both the Royal Navy’s new aircraft carriers and RAF land bases. The contract for the F-35B aircraft forms part of the MOD’s investment in Lightning II over the next five years to procure an initial 14 of these multi-role fifth generation aircraft, as well as putting in place the necessary support arrangements and infrastructure. Further contracts will cover the procurement of a range of equipment such as engines. A UK test team has recently completed initial aircraft handling trials for ASRAAM and Paveway IV on the F-35B aircraft. Trial rounds, which are identical to the operational weapons, were tested for the first time during a series of flights from the US Navy’s Maryland test facility.

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nwtenergy.co.uk 12 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

MANUFACTURING NEWS

TECHNOLOGY

Greenwich, South East London; Milton Keynes and Coventry (one project) and Bristol have been chosen by Innovate UK to run formal trials to see how driverless cars could be integrated into everyday life across the country. The trials will see driverless car research taking place in the real world and lead to a better understanding of how the technology needs to develop and how people interact with the vehicles. It will also help the public get used to seeing the vehicles on the streets. The trials are expected to last between 18 and 36 months and start from January 2015. Funding for all three projects was confirmed by Chancellor of the Exchequer George Osborne as part of the Autumn Statement with an additional £9m investment. A significant rise in the use and application of 3D printers is encouraging huge growth in the market for 3D printing materials, with the total consumable market expected to increase 10-fold by 2025, reaching £5.1bn, according to a recent report by IDTechEx. According to the report, 3D printing is no longer used only for “one-off pieces and prototypes”, but for final part production of items with “reduced and simplified assembly, quicker design iterations, greater design freedom, mass customisation and minimal material wastage.” Subsequently, 3D printing has become increasingly used in sectors such as aerospace, orthopaedic and dentistry, with adoption seeing rapid growth in education, military, medical research, and automotive. Researchers at Nottingham Trent University have developed a new artificial intelligence system which reportedly detects problems with cutting tools on manufacturing lines with 100% accuracy. The study found that by combining infrared cameras and artificial neural networks it was possible to consistently detect when cutting tools were broken or missing. According to the University, the technology, which does not require any contact with the manufacturing machinery, could provide real time feedback via computer to alert operators in order to help prevent catastrophic tool damage and be a more efficient method for manufacturers to maintain the productivity of their manufacturing lines and the quality of their products in an automated way.

Dates for your diary January Crossrail Supply Chain Conference Leeds City Region Enterprise

Partnership is staging a Yorkshire & Humber Crossrail Supply Chain Conference for businesses to find out more about supply chain opportunities and speak to the Crossrail team face-to-face. At the AMP technology Centre, Advanced Manufacturing Park, Rotherham. www.bradfordchamber.co.uk/crossrail-supply-chain-conference-14-january-2015/

19-20

ICMIA: XIII International Conference on Manufacturing and Industrial Engineering aims to bring together academic scientists, researchers and scholars to London to share their experiences and research results about manufacturing and industrial engineering. It also provides an interdisciplinary and multidisciplinary forum for attendees to discuss the most recent innovations, trends and concerns. www.waset.org/conference/2015/01/London/ICMIA

The MeDe Innovation Annual Conference 2015 Taking place in Nottingham, this year’s conference is focusing on ‘Advancing Orthopaedic Medical Device Manufacturing’. It will bring you up to the minute developments in the changing landscape of design and manufacture for orthopaedic medical devices. The interdisciplinary one-day conference brings together research, industry, clinical, and regulation. www.mede-innovation.ac.uk/event/mede-innovation-annual-conference-2015advancing-orthopaedic-medical-device-manufacturing

FEBRUARY

25-26

The Future Powertrain Conference (FPC2015) is a two day event at the National Motorcycle Museum in Solihull to bring together industry and academic experts within the powertrain development field. It will open up presentations and discussions on the solutions to the challenges faced by the engineering industry in the UK and internationally over the next ten years. www.futurepowertrains.co.uk/2015/

EEF Flagship National Conference: Make it Britain- manufacturing a renaissance. Join hundreds of manufacturers at the QEII Events Centre in London to network, new business opportunities and share best practice. Hear key note speeches from the main political parties and leading manufacturers www.manufacturingconference.co.uk/default.aspx

MARCH IGD Multichannel Supply Chain 2015 Based near St. Paul’s, London,

this one day conference will be relevant for retailers, manufacturers and service providers alike. The event will benefit: supply chain directors, logistics managers, strategy managers, planning and replenishment managers and channel salesmanagers. www.igd.com/Our-Services/ Conferences-and-Events/Multichannel-Supply-Chain-2015/

APRIL

8-10

ACME-UK 2015 will be the ideal forum for the fostering of ideas and the establishing of new collaborative research links, which will help to build strong research networks within UK and at an international level. The conference will also give you the unique opportunity to visit Swansea, one of the most vibrant cities in Wales and, crucially, to get to know the place where the history of the finite element method began more than 50 years ago. www.astutewales.com/cy/news_and_ events.htm?id=105

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 13

Western Pegasus gauge the benefits of better global collaboration As your company grows internationally, so will your contacts. And as Western Pegasus became ever more successful, they needed to collaborate with their global network more effectively.

The Truphone difference

Headquartered in the US, Western Pegasus supplies gauges and gears to the global automotive, aerospace, agricultural and marine industries. An international presence, President Andy Wincel always had either his US or UK phone on at one time. But contacts rarely knew which number to reach him on. Missed calls became missed opportunities.

Truphone World plans also offer peace of mind on the move with an extensive bundle of minutes, texts and data in 66 countries. That means customers can make more calls and access more data across the world’s major business hubs.

Truphone provided a unique solution – a single SIM that holds up to eight international numbers. Andy now gives his contacts a local number that they can reach him on at a local rate wherever he is in the world. Other employees work with the German automotive sector, so they’ve taken German numbers. Together, Western Pegasus is conducting business as usual and increasing productivity.

In the Truphone Zone, which includes the UK, US, Germany, Spain, Poland, Australia, Hong Kong and the Netherlands, users can talk, text, email and download just like locals. They can even use up to eight international numbers from the Zone, all on a single SIM card.

With excellent call quality and fast data speeds Truphone’s pioneering global network is helping staff stay connected with costs reduced by at least 50 per cent. Find out how Truphone can help you By phone: +44(0) 203 006 4300 By email: business.uk@truphone.com truphone.com/manufacturer

FOR THE DIARY

Upcoming Events To see a full events listing please visit: themanufacturer.com/events Connect with our events team on twitter: @TM_EventsTeam FF Series: The Manufacturing Talent Challenge 24 February 2015, The Waldorf Hilton, London Free for manufacturers*

The Manufacturing Talent Challenge is aimed at providing practical, company size specific knowledge to close the gap on the skills shortage and gain advice on how to access highly trained employees. It will focus on reassessing and implementing first class schemes, the benefits of building strong relationships with the local community and enticing the next generation of manufacturers. themanufacturer.com/ talentchallenge #TMSkills

FF Series: Automate UK 24 February 2015, The Waldorf Hilton, London Free for subscribers of The Manufacturer*

Automating your business reduces costs, increases quality, and helps attain higher health and safety standards. By attending next year’s Automate UK conference, you will learn how leading technology can not only help your company remain competitive, but also expand your business opportunities, increase consistency, and enable reliable and repeatable around the clock production. themanufacturer.com/ automate2015 #TMAutomate

FF Series: Energy Management

FF Series: 3D Printing and Additive Manufacturing

19 March 2015, Birmingham

28 April, 2015, Manchester

Free for manufacturers*

Businesses are coming under increased pressure to tackle rising energy prices, comply with government regulation, and remain competitive in the global economy. Increasing efficiency and reducing energy costs is becoming a key strategic objective. Bringing industry experts together will help share best practices, solutions and strategies to achieve successful energy management across the manufacturing sector. themanufacturer.com/energy2015 #Energy

FF Series: Lean Manufacturing

Free for manufacturers*

Advanced technology is helping manufacturers create everything from medical implants to automotive parts. This year’s conference will provide delegates with much needed insight into the world of advanced technology, and how to innovate, develop and enable crucial business growth. By understanding the benefits, manufacturers can expand their market and move towards the future. themanufacturer.com/3DAdditive #TM3D #TMAddMfg

ERP Connect 14 May 2015, Reading

The Lean Manufacturing conference is aimed specifically at optimising and overcoming challenges within your current lean programme. It will address engagement issues across all levels, how lean can help during times of business difficulties and overall employee education to ensure best practice.

Exclusively for companies looking to implement or replace their ERP system. ERP Connect 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!

themanufacturer.com/lean2015 #TMLean

erpconnect.co.uk #ERPConnect

19 March 2015, Birmingham

Free for manufacturers*

* Free for a limited number of manufacturers. Passes are allocated on a first come, first served basis. Subscribers to The Manufacturer, from manufacturing companies are guaranteed a place. Once all of the free places have been allocated, there will be a cost of £395 +VAT per delegate from manufacturing companies. £995 +VAT per delegate - standard booking fee for delegates from consultancies/solution providers. T&Cs apply.

16 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

The Manufacturer would like to thank all sponsors, supporters and entrants of this year’s awards who together ensured 2014 was yet another successful year of industry celebrations and recognition. Headline sponsor:

Co sponsor:

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Official App sponsor:

Category sponsors:

I n d u s t r y F o r u m

It’s great tribute to our 280 employees and the shareholders back at Xtrac and our operation in America as well. Very excited. It’s been a wonderful night

Managing Director, Xtrac Winner 2014

Keen to celebrate the success of your own manufacturing organisation in 2015? Register your interest now for entry to The Manufacturer of the Year Awards 2015. Email Laura Williams on l.williams@hennikgroup.com to receive notification once entries open.

www.themanufacturer.com/awards

Drinks Reception sponsor:

APPOINTMENTS

Fiona Kendrick and Jim Moseley

Food and Drink Federation

Fiona Kendrick, CEO and chairman of Nestlé UK and Ireland, was elected FDF President for 2015 in succession to Richard Evans, president of PepsiCo West Europe & South Africa Region. A formal handover of responsibilities will take place at the FDF President’s Reception on December 15. Fiona Kendrick said: “The food and drink industry is the largest manufacturing sector in the UK. Together we play a vital role in the UK economy as a major employer, as a partner to British agriculture, and as a supplier to British retailers.” Former managing director of General Mills UK, Eire & Nordic and FDF President from 2011-13, Jim Moseley is to become acting director general of the Food and Drink Federation,

Russell Turner

following the resignation of Melanie Leech. Melanie joins the British Property Federation in the New Year and the process of recruiting her successor is underway. President of the Federation Richard Evans said: “I am delighted to welcome Jim back to FDF. This is an important time for the sector and Jim has a wealth of industry experience and a knowledge of FDF that equips him well to see the Federation through until we have a permanent director general in place.” Jim Moseley said: “I’m delighted to be asked to lead FDF through the transition to a new director general. FDF has enjoyed huge success under Melanie’s leadership and I look forward to continuing that progress with her talented team.”

Rhenus

Freight forwarding specialist Rhenus has appointed a new branch manager as a result of rapid market. Russell Turner will be heading operations at the Cannock branch for the UK division of the logistics operator. After a career spanning 30 years in the industry, Turner has a vast knowledge of logistics. He has worked at a number of logistics firms including periods at Kuehne + Nagel, DB Schenker, and most recently at DHL Freight as head of

European freight forwarding, specialising in road freight. Turner will focus on the continuing development of Rhenus’ Cannock facility, including standardising the internal structure to ensure customers continue to receive high levels of support and excellent customer service as the business grows; introducing even higher levels of professionalism and supporting team development.

James Grainger, Helen Bashford-Malkie, David Cunliffe, Alan Cornock

The Motorsport Industry Association (MIA) has added to its executive committee with the appointment of four new members. They have a wide knowledge of the grass root sectors of automotive, engineering, manufacturing will help to steer the Association’s future endeavours.

Andrew Steele

The new appointments are director of Grainger & Worrall, James Grainger; managing director of Chevron Racing Cars, and ex-chair of the BWRDC, Helen Bashford-Malkie; managing director of DC Electronics, David Cunliffe; and managing director of FCS, Alan Cornock, were co-opted onto the committee at the MIA’s AGM, which was held at the University of Warwick. In addition to the new committee members, Jim Morris, managing director of Lifeline Fire & Safety, was re-elected as MIA chairman for a further two year term. He has been an MIA committee member for more than six years

Motorsport Industry Association

and has first-hand experience of growing his small motorsport business into a global success story. David Cunliffe, managing director of DC Electronics – one of the leading manufacturers of custom-built electrical systems, said: “Being invited to be part of such a prestigious organisation is a real honour. I am extremely passionate about the industry and delighted that I am now in the position to offer my skills and expertise to other members. The MIA is a vital organisation within the motorsport industry.”

Forcam

Manufacturing shop-floor software specialist, Forcam, has reinforced its UK presence with the appointment of Andrew Steele as managing director of UK operations. Coming from an aerospace background, with experience of OEM and tier 1 suppliers, Andrew has a deep understanding of manufacturing issues, and economics. This includes innovation and the complexity of manufacturing supply chains.

18 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

To notify The Manufacturer of your company’s appointments, please contact Barbara Fitzsimons at: b.fitzsimons@hennikgroup.com or: 0207 401 6033

Getting the right contract, meeting carbon targets, monitoring consumption… We understand that you need more from us than just energy. With E.ON, you’ll benefit from a strong, long-term relationship with someone who really understands your business. And with our expert knowledge and experience, we can help you monitor, analyse and control your energy use. Our products and services are tailored around our customers, so whatever your business needs, your dedicated Account Manager will help you find the right solution. Find out more at eonenergy.com/themanufacturer Or call 0330 400 1050 We’re here Mon–Thurs 8:30am–5pm, Fri 8:30am–4pm.

Helping our customers. We’re on it.

E.ON UK plc. Registered Office: Westwood Way Westwood Business Park Coventry CV4 8LG Registered in England and Wales No. 2366970

MIND THE GAP & DIGITALLY MADE

Mind the Gap.

Digitally Made.

Lost in translation Skills Gap Programme Director at the D&T Association Chery Philips stresses the importance of the manufacturing industry working with educators to ensure the next generation of engineers

uring November 2014, the Department for Business, Innovation & Skills (BIS) published Engineering Skills: Perkins Progress Report. This follows the recommendations made by Professor John Perkins in the previous year to create the conditions to increase the supply of engineers. The report highlights much of the progress already made and the continuing need for engineering employers, educators and government to work together. One of the recommendations was that: “The engineering community should provide continuing professional development for teachers, giving them experience of working in industry to put their academic teaching in practical context and enabling them to inspire and inform their students about engineering.” The report highlights some of the progress made against this with the development of an escalator model, where teachers can access an experience of work ranging from one day to two weeks from existing provision. Many primary and secondary school teachers have limited or no experience of business and industry, so if all schools were to ensure that every teacher took one day per year to gain an experience of work then this would be a huge step forward. To achieve this across the board, schools may need to be held accountable for ensuring that teachers are given the opportunity to gain an experience of work. They currently are not. As a first step, an experience of work, takes us in the right direction. In the case of Design & Technology, curriculum and specification content such as current industrial processes or using the industry context, encompasses a broad spectrum of possibilities found in industry, from quality to logistics. Breaking the industry context down into component parts which fit individual lessons or could become the focus of a school project would take a depth of training and industry insight beyond that which is possible through a one-day experience of work. If the links are lost in translation it becomes challenging for the teacher to do more than add a simple reference to business rather than demonstrating the clear linkage between specific curriculum content and industry requirements. However, this is a critical point in ensuring the sustained success of a partnership which impacts upon learning and goes beyond inspiring students.

20 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

The future of manufacturing decoded ’s digital guru, Hayden Richards, shares his thoughts on the digital revolution and how manufacturers can adapt to the future.

ovember saw Microsoft hosting #FutureDecoded, an event held at the Excel Centre in London dedicated to deciphering the future. It offered the opportunity for business leaders to listen to a line-up of famous thought leaders expound on the need to evolve and master today’s business thinking in areas of transformational technology, economy and society. Business leaders recognise the basic need to get to grips with the subject matter. It is a different world they operate in. Keynote speaker, TV’s Jeremy Paxman, nailed one important point: “This is the age of the narcissist. We live in a time where anyone’s opinion is worth as much as an expert”. WPP’s Sir Martin Sorrell speaking on the importance of creativity stressed disintermediation. Put simply, this is cutting out the middle man. With this mind-set, manufacturers can reach and eventually control the consumer. Microsoft CEO Satya Nadella, stated that the tech giant hoped to create new social tools to increase productivity regardless of where you worked. This is just the tip of the iceberg, as there are a lot of external forces for manufacturers to contend with. Think globalisation, emerging tech and the continued disruptive opportunities that mobility, the cloud and even talent could bring. So what does the future look like? It’s certainly an environment where one could be a manufacturer minus the factory. 3D printing has certainly seen to that. Joe Pine, author of Mass Customization, chatting to IndustryWeek says: “We’ll continue to see the shift from mass producing to mass customising goods. Companies that can make this happen faster than their completion will increasingly be winners”. Digitisation has its many benefits since staff can now monitor operations from afar on smartphones and are empowered to make real-time decisions towards the optimization process. Decision makers need to start thinking about which future manufacturing trends will have an impact on the business and how it will affect their continued evolution, it will certainly have a profound impact on business strategy.

Keep Stock In

How? The answer is not buying more lorries, or recruiting more people to stock and restock materials, parts and supplies. The answer is a better system automated dispensing technology within the factory, right at the point of work.

Visit Our Showroom Brook Court, Whittington Hall, Whittington Road, Worcester, UK WR5 2ZX ÂŠ 2014 Apex Supply Chain Industrial, LLC. Apex, Axcess and Trajectory Cloud are trademarks of Apex Supply Chain Industrial, LLC. All rights reserved. EUM-1005 8/14

Every Thing is Possible.

Letters to the editor

Production lines

Letters to the Editor Tony Hague Managing Director of PP Electricals

I couldn’t help but feel a sense of déjà vu recently when the media machine played out the latest report by Deloitte. Apparently ‘automation’ threatens a third of UK jobs. For one minute I thought we’d been transported back to the dark days of the mid 80s when Tomorrow’s World first brought robots to our screens. The reality is that automation can and will reduce manufacturing costs further in pretty much every industry sector it touches. We can’t get away from the fact that we already drive cars and watch TVs that have been assembled by robots. However, has this resulted in mass unemployment in automotive or consumer electronics? No, in fact they have grown and evolved, creating thousands of jobs in the process. What is certain is that a lack of awareness and investment in automation – in parallel with a similar approach to training - will result in UK companies

The reality is that automation can and will reduce manufacturing costs further in pretty much every industry sector it touches losing their competitive advantage against international arrivals. And we all know where this ends…in factory closures and unemployment. Just look around some of our great industrial cities to see this first hand. Whilst we have a new generation of added value manufacturers, there’s no escaping the fact that the UK is littered with sites of grand old factories that are now home to supermarkets, housing estates and bowling alleys. So my message is simple. Automation will develop and who knows where it will end. The real and immediate threat is not embracing automation, it is letting fear and misunderstanding ruin its true potential.

22 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

Marc Moschetto Vice President of Global Marketing at Workforce Software

What comes to mind when you hear the phrase ‘employee engagement?’ Do you view it as a ‘fluffy’ concept with no direct impact on your day-to-day operations? You’re not alone. But more and more leading organisations see it as an essential ingredient in the long-term viability and success of their business. Here are some tips: It is so important to collect labour data at a granular level and leveraging that data to drive continuous improvement. Those same metrics can serve as a leading indicator of waning engagement or declining employee satisfaction - which are often tied to a lack of productivity. Comprehensive labour metrics can also help identify the best path forward. For example, if there has been a long stretch of excessive overtime, there’s a good chance your workforce may be suffering from fatigue. Similarly, if you have newer employees working on particular tasks, and they have not been properly or thoroughly trained, they may feel like they’re ‘floating’ in their role. In either example, creative scheduling can resolve the issue. How employees are treated can also have a significant impact. Having a workforce management strategy, and automating it through a platform that drives fairness and consistency across the board can go a very long way in creating an environment where all employees feel they are being treated equally. Pay cheques are perhaps the most personal aspect of any job. When there’s a payroll error, it has a significant and immediate impact to the employee. Having an automated way to capture time, calculate pay, and feed that calculation to payroll is the best, most accurate, and most automated way to reduce - if not eliminate - pay calculation errors. Numbers and metrics are important, but so is walking the floor. I used to work for a company where the CEO believed it was critically important to ensure that employees understood why the work they did was vital to the success of the company and, similarly, he wanted them to understand that he valued their contribution. Sometimes something as simple as a kind word can go a very long way in driving engagement. You must keep an eye out for those individuals within your organisation that may be better suited for other roles. Every organisation has one or two individuals who help to define the character and composition of the business, and identifying them is key.

26–27 November 2014 | The ICC, Birmingham

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’s editorial team is out and about at a wide variety of industry conferences, debates and factory tours month in, month out. Let’s get a snapshot of the most interesting trips in November.

Same but different Callum Bentley took off to New York to see how one company is using 3D printing to shake up the manufacturing and retail games.

itting in the urban maze that is Manhattan, is a store which from the outside resembles most other modern retail outlets – floor to ceiling glass windows, colour variable lighting, and long designer-type benches. But step inside and the walls are lined with Stratasys Fortus 250 3D printers, humming away as they create one-ofa-kind earphones for customers in New York and all over the world. The company is called Normal, and through a very clever use of 3D printing

technology, the company’s founder, Nikki Kaufmann has created a business run out of what is neither a store, office or factory – it’s actually all three. The process involves the customer using the Normal app on their smartphone to take a series of simple pictures of their ears, customising the colour options on their earphones, adding some shipping details and the images are then sent through to Normal HQ in Manhattan. The images are captured, analysed and fed into the 3D printers which produce a set of earphones specifically printed to each individual’s ears. The pieces are then finished in site of walk in customers who can watch the production line at work towards the back of the store. The direct to consumer manufacturing process was thought up after Mrs Kaufmann built up her knowledge of rapid prototyping while working

24 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

at her husband’s business, Quirky. The company literally asks for ideas of products from the public, uses additive manufacturing to develop rapid prototypes and then put the more popular products into production. “I ran operations and manufacturing at Quirky so I spent a lot of time making products and seeing factories all around the world and seeing how things were made. It was fascinating to me,” Kauffman said. “For me I knew right away I wanted the Stratasys Fortus 250 for two reasons. One, because it prints at very high resolution, a resolution that is commensurate with a $200 item. And also the second reason was because they are super easy to operate. They are front loaded - you literally just press a button, and that leads to a factory that can really pump out products at scale.” Considering the staff are expected to be able to cover all aspects of the business, and a lot of them have no background in manufacturing, the service appears to be running along at rapid speed - particularly considering it was set up from idea to opening in under 10 months. It is businesses like these that are finding real uses for disruptive technologies. Or are these companies now becoming the disruptors?

OUT AND ABOUT

The pick of the litter

Elise Bailey learns first hand the diversity and unique nature of the UK’s largest independent pet food and accessory maker, Armitage Pet Care.

n the middle of Colwick just outside the hustle and bustle of Nottingham, stands the Amitage Pet Care factory. Export manager Neli Ban and chief executive Paul Bousfield had the task of showing me around the UK’s largest independent manufacturer and distributor of pet accessories. The breadth of the company’s products transcends across mass merchandising outlets to discounters and smaller distributors. The company even manufactures Christmas pet products as diverse as advent calendars and stockings. As we tour the factory, Ban is quick to point out the company’s expansion into foreign markets, one being Australia, where the company recently took out the Outstanding New Product award at the PIAA Pet Expo in Sydney for its Good Girl Catnip drops. Armitage has also successfully tapped into the Chinese market, where the company has managed to secure a strong position in the market for its plastic pet homes and accessories – surprising, considering the scale of the Chinese plastics industry. Armitage Pet Care is the only manufacturer that relies heavily on injection moulding for its products. Due to the small nature of their products, Bousfield explained how manual handling is still a prominent feature in the factory in order to provide flexibility with the high demand of variety and bespoke orders. The need for quick changeover times to compensate for these different orders playing its part. Due to the high demand and increased export, expansion is taking place with two new moulding machines already being implemented earlier this year with five more commissioned for the next three months. With approximately 55m caged birds in Europe, Armitage has had to adapt to high stock turnover in areas such as its sand sheet production lines. Additional lines are being commissioned to be put in place by February 2015, while the current gas heating used is being switched to infrared to reduce emissions and cost. With reports showing pet owners would willingly cut back on their own food to provide for their beloved pets, it’s easy to see how a company such as Armitage Pet Care can thrive. However finding new markets and thriving on innovation seems to be the key to this company’s growing success.

Pamela Petty, managing director of Ebac, shows Lord Digby Jones around the factory

Whiteware returns to England? Whey-aye, man journeys to the North East to see the relaunch of new chest freezer models at the Norfrost plant.

here are many jokes and stereotypes about UK manufacturing and its attempts to retain and advance, so The Ebac Group welcoming ‘The New Troubleshooter’, Lord Digby Jones back to the region to see the fruits of the project, on which he worked with the company as part of his BBC 2 series earlier this year, was a great way to break the pattern. He was joined by Ebac managing director Pamela Petty, the North East regional director for the EEF Liz Mayes, and Dr Jon Helliwell, director of the Centre for Process Innovation, for a debate on the future of UK manufacturing, which was chaired by Graham Robb, North East chairman of the Institute of Directors. We were shown how new product lines being launched by Ebac were helping to create up to 200 new jobs at its two sites on Aycliffe Business Park. Ebac bought the Norfrost brand and equipment in 2013, and has set up the new factory in the village of Newton Aycliffe, near Darlington, County Durham, to breathe new life into the popular brand. The freezers are already available to buy through Argos and Amazon. Pamela Petty, the managing director of Ebac, was positive: “It was fantastic to welcome people from across the regional community to witness the start of a new era for Ebac. The revival of the Norfrost brand is the start of our move into domestic appliances, with washing machines coming next year. “In the UK, we need to acknowledge and support the public’s belief in British made products by manufacturing more of them and making them available to buy. The positive effect this can have is widespread, and the jobs such manufacturing would create will improve the lives of those involved and the economy as a whole.”

If you would like to visit your factory or business, let us know and email the editor at c.bentley@hennikgroup.com December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 25

Best of http://www.themanufacturer.com

Deputy Prime Minister Nick Clegg announced an action plan dedicated to boosting manufacturing supply chains to deliver a multibillion pound lift for British industry.

cheduled to be published in the New Year, the proposal promises to encourage and support UK manufacturers to work together with British companies to produce the parts they need, rather than relying on overseas manufacturers. The government says it will work in partnership with leading employers to develop the plan, with its approach to industrial strategy. The strategy will be the first coherent plan put in place for the vital networks of suppliers that are crucial to making and building things in the UK. It’s aim is to build on the work that the government has already put in to helping secure the growth of the manufacturing industry – including through the Regional Growth Fund (bit.ly/1qsbLzw), the Advanced Manufacturing Supply Chain Initiative (bit.ly/1D6xzGF), Reshore UK (bit.ly/1Gh945V), the Manufacturing Advisory Service (bit.ly/12qfse0) and greater support for employer-led skills training. The aim is that by early next year, the Department for Business, Innovation and Skills will publish and implement the action plan to address some of the challenges UK supply chains face in tackling skills gaps, adopting innovation and research, and ensuring more business finance to those British companies. The Confederation of British Industry estimates that the UK could unlock around £30bn and generate up to 500,000 more jobs over the next decade by supporting and strengthening our domestic supply chains through concerted action.

Deputy Prime Minister Nick Clegg said: “Every successful company is only as good as its supply chain. The last four decades have seen the UK’s manufacturing base increasingly forced to compete with low-cost economies for investment, jobs and growth. “Some businesses have struggled and it has resulted in a hollowing out of the UK’s domestic supply chains with over half the supplies used in British manufacturing coming from overseas. “This cannot go on. That’s why I’m acting now so we can get off this merry-go-round where every time a manufacturer shifts production overseas, the local companies that support them begin to disappear too. “These supply industries are huge, important sectors in their own right – our steel makers, petrochemical companies, glass producers all the way down to car seats manufacturers – all of which employ thousands of people and generate millions for our economy but they need our support.” Read more at bit.ly/CleggSupply

26 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

Five key trends for UK manufacturing industry in next decade Over the next decade the UK’s manufacturing industry is set to undergo some radical changes. To help manufacturers understand what’s in store, Steve Winder, RVP Manufacturing UK at Epicor, shares key findings from the company’s latest report entitled ‘UK manufacturing 10 years from now: innovative, international and in a hurry’. 1. Globalisation requires a new approach

Widespread globalisation is being gradually replaced with targeted international production and distribution. Companies are moving closer to their customers and establishing a presence in regions with high growth potential or influence. This approach has farreaching implications for business decision-making and management, requiring a balance between local execution and centralised control that can be difficult to achieve.

2. Innovation and speed will be critical

Experts and leading industry figures agree that both innovation and speed to market are crucial for the successful survival of the UK manufacturing industry. According to PwC’s 2013 report ‘Preparing for Growth, manufacturers adopt new strategies for growth and competitive edge’, “survival in today’s global market and investing in the future requires organisations to innovate and be able to commercialise successful innovations quickly.”

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

3. Portfolios and production lines will focus on profitable products Increased production costs, changing customer needs and a stricter regulatory environment mean manufacturers will look at reducing product portfolios and producing smaller batch quantities, shifting focus to a limited number of high-value, high-functionality products – those that generate the greatest revenue for the business. Alternative revenue generating options are likely to include licensed products, contracting-out spare production capacity and partnerships, while some manufacturers will increase service offerings, including value-added services and integration options. Another prevalent trend will be the shortening of product lifecycles . In the race for competitive differentiation, the time from drawing board to delivery becomes shorter and increasingly important. Adopting new technology will help manufacturers bring their products to market faster than their competitors.

4. IT and intelligence will have an inestimable impact

Improved enterprise resource planning software, the use of radio frequency identification (RFID) tags and enhanced production line automation and monitoring already boost efficiency and operations and will continue to have a significant impact on the manufacturing industry. The emergence of deep and intelligent connectivity between devices and systems will introduce a raft of operational and customer benefits and a leaner, more responsive approach to manufacturing. In addition, cloud-based technologies and software-as-a-service (SaaS) applications will underpin more collaborative, agile and mobile working practices.

Best of Online

Popular blog contributions last month included:

Self-driving into the future KPMG’s John Leech discusses the firm’s white paper on Connected Cars, pondering the challenges, benefits and whether the concept is a fanciful dream from a science fiction novel. www.themanufacturer.com/articles/self-driving-into-the-future/

Working with academia to advance lightweight aluminium Anthony Evans, managing director of precision diecasters, Sarginsons Industries, talks about the company’s growing links with the best of UK Academia, and why it’s gone back to University to help deliver the materials and the manufacturers of tomorrow. www.themanufacturer.com/articles/working-with-academia-to-pioneeradvances-in-lightweight-aluminium/

From shop floor to top floor Karl Walker, Automation Marketing Manager at Omron argues the case for integrating individual line and equipment control systems into high-level enterprise management software. www.themanufacturer.com/articles/from-shop-floor-to-top-floor/

Our tweets,your favourites

A selection of the most-favourited tweets from @TheManufacturer last month.

5. Sustainability will be an industry-wide standard

Energy costs are continuing to rise and there are increasing pressures to reduce environmental impact and waste. Over the course of the next decade many firms will be turning to newer, cleaner technologies to power their operations and support their services across the world. Energy management will become a key part of every manufacturer’s responsibilities. Read more at bit.ly/1shaOFV

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 27

The UK space sector continues to thrive, growing at over 7% per year and is currently worth £11.3bn to the UK economy

Following the first landing of a satellite on a comet in November, looks at a thriving UK space sector and what opportunities it holds for UK manufacturing.

etween the Virgin Galactic crash, Antares Rocket exploding on launch and another Russian Proton rocket failing to deliver a satellite to the right place, it seemed the odds were stacked against the Rosetta space mission’s attempt to be the first to successfully land a satellite on a comet. But the pessimists were hung out to dry when cheers and squeals of excitement filled the Rosetta space mission’s viewing platform at 16:03 on November 12 as the Philae lander touched down on the comet, 67P/Churyumov-Gerasimenko. After a decade-long journey through space, scientists and engineers looked on in awe as the lander’s downwards-looking ROLIS descent camera in combination with the orbiter’s OSIRIS images showed the device landing, failing to deploy its harpoons effectively and bouncing from the surface in the atmosphere for a further 110 minutes. In that time, Philae travelled 1km at a speed of 38cm/s, making a smaller hop, travelling at 3cm/s and landing in its final resting place seven minutes later. Since its touch-down data has been collected to reveal its location, ESA has narrowed down Philae’s positioning to two small patches of land. Once its location is identified indefinitely the team will be able to fully analyse the data. Universities, Science and Cities Minister, Greg Clark watched the landing on a visit to Airbus Defence & Space in Stevenage saying: “Rosetta has captured the world’s imagination, and the mission is a real testament

28 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

to British engineering and technological expertise. I am very proud that a major part of the Rosetta platform was built in Britain here at Airbus.”

The potential

This historic event has placed the spotlight firmly on the space industry’s potential to create new business opportunities in the same way that Silicon Valley and an entire global industry has arisen from the Internet. Already Deep Space Industries and Planetary Resources have plans to mine the asteroids, with some single chunks of space rock already valued at more than $100bn. Chinese ambitions to mine the moon for the nuclear fuel helium 3 are also a viable prospect, while the Japanese space agency recently revealed a technology road map for beaming energy to Earth from solar power satellites in the 2030s. The UK space sector continues to thrive, growing at over 7% per year and is currently worth £11.3 bn to the UK economy. With over 5,000 jobs created in the past two years, it employs over

34,000 people and supports a further 72,000 jobs in other sectors. This recent success coupled with Philae has certainly set the wheels in motion for the UK Space Agency to invest a massive £32m in global space industry partnerships to open opportunities for the UK space sector to share expertise in real-world satellite technology and services overseas. The agency announced in November that grants would be awarded to British companies to work with international partners developing satellite technology to tackle issues like flooding, deforestation and humanitarian crises in emerging economies. These grants will be match funded by industry. The International Partnership Space Programme (IPSP) is set to run for more than two years and will support UK companies to become partners to provide hightech exports, thereby growing the UK space sector from strength to strength. On the same visit to Stevenage, Greg Clark said about the grant: “This programme will help our international partners to take advantage of British expertise in satellite

Rosetta and the UK space industry

technology, services and scientific research. This funding will give even more UK companies the chance to work on these kinds of exciting projects so that more people can enjoy the considerable economic and social benefits that new space technologies provide.”

What does this mean for UK manufacturing?

Chris Barnatt, associate professor of Strategy & Future Studies at Nottingham Business School told about the “enormous potential” presented for manufactures but highlighted that one challenge is that the “paybacks are long-term”. Without an immediate validation, manufacturers will be challenged to stay involved. The time element is another reason why Barnatt believes that in the future there will be a shift from government to private funding. “Britain, unlike China, which is one of the only countries that has the political structure to make long-term commitments to space, and able to commit over 30 years or so, doesn’t have the

structure do that. We are now starting to see more private launch capabilities. Private companies will do it properly or get out of business pretty quick. Whatever happens in space in the future will involve private companies. There is also a bigger pay off with private companies, because they will be better prepared to succeed,” Barnatt explains. It seems more and more private companies will realise the potential benefits, for instance SpaceX, designer and manufacturer of advanced rockets and space crafts, has landed a contract to fly astronauts into space in a couple of years, offering launch services for people as well as cargo. But it’s not just the long-term that will challenge manufacturers, according to Barnatt. “The immediate challenge is: how do you make materials in order to make this happen for that period of time and at that capability?” he says. “We are currently waiting for developments in nanotechnology to make some of these composite materials to make spacecrafts.” Despite the challenges, there is enormous potential for manufacturers in the space industry. One area is 3D printing, an innovation that is like to significantly reduce the cost of space technology. In November this year the first zero-gravity 3D printer was set up on the International Space Station, as well as NASA’s most complex 3D-printed rocket part. It passed its first tests on November 8. Additionally, these new technologies and innovations will help to create spin-off technologies and innovations, as well as the opportunity to inject new inventions into the manufacturing sector.

HOT TOPIC

Over 5,000 jobs created in the last two years

UK Space Agency to invest a massive £32m in global space industry partnerships

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 29

The future of through-life engineering services A fusion of economic, environmental and revenue drivers has made through-life engineering services arguably the most important branch of engineering in 2015. Will Stirling meets the experts who explain why.

igh value manufacturing companies are increasingly offering through-life support for their products and guaranteeing their performance. It is well-known that in the aerospace and defence sectors, over half the revenue is coming from such throughlife engineering services (TES) and it is growing. Other sectors, such as rail, energy and machine tools have also recognised this potential and are striving to create revenue from servicing the product. For example, DMG Mori Seiki and hydrogen energy company Intelligent Energy have recently joined the EPSRC Centre for Through-Life Engineering Services TES provides a nice fusion of several drivers that are reshaping industry. Efficiency, as companies waste millions in removing and servicing perfectly good parts â&#x20AC;&#x201C; so called no fault found â&#x20AC;&#x201C; can be improved with better monitoring, as fewer parts are changed. The

environment benefits from this. And companies create new, repetitive revenues by charging for whole life servicing of parts. The 3rd annual International Conference on Through-Life Engineering Services brought together 120 through-life engineering practitioners from industry and academia to cross-pollinate knowledge and ideas and debate future advances and challenges of the TES in industry. looks at two of the TES disciplines examined at the conference that point to the future role of TES in life cycle engineering and the circular economy.

Advanced technologies in life cycle engineering

Maintenance processes for long-living and cost-intensive products (e.g. trains, airplanes, machine tools) are getting more complex, partly due to the increasing integration of electronic components. Long term serviceability

30 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

for electronics cannot be guaranteed in many cases, because the integrated electronic components have a shorter lifecycle compared to the long-living products they are integrated into. Numerous hardly predictable breakdown possibilities complicate the process of maintaining longliving products. Also, when a new maintenance contractor wins a contract, they often find it difficult to obtain the electronics schematics. Professor Rainer Stark and colleagues at the Fraunhofer IPK in Berlin were approached by industry

Maintenance processes for long-living and cost-intensive are getting more complex, partly due to the increasing integration of electronic components

Through-life Engineering

to solve this problem. They used 3D scanning and computer tomography techniques to create a detailed picture of the printed circuit boards (PCBs). Stark et al went through rigorous metrological processes to render high resolution and distortion-free images images of the PCBs internal structure (see diagram). Six months from the study’s conclusion, Stark’s team are showing that these advanced techniques can help to ‘reverse-engineer’ PCBs so that maintenance contractors know when to replace them, and what with. It eliminates costly data retrieval and provision between OEM, customer and service provider Data provision is key here and a theme throughout the TES conference. Data flow modes are essential to make the connection. “Our future role should be explore industrial solutions to eliminate a lot of [data retrieval] problems so we have a better functioning environment for longer living products.” Stuart Broadbent, from Alstom Transport, pointed out the reverse engineering is clever but the material improvement will be in the willingness to share original data. “We develop expensive processes such as reverse engineering of electronic printed circuit boards, which in a sense only incentivises the OEM to make them a more complicated and more difficult to decode,” he says. The real change in TES could be cultural and behavioural, more than technical.

Maintenance services for promoting sustainability

The research of Professor Benoit Iung of CRAN at Lorraine University holds that, in modern manufacturing processes, opportunities to increase efficiency still exist, but the gains are largely incremental and insufficient to generate real competitive advantage or differentiation. Lean has come as far as it can, some might say. In reaction, some business leaders are moving towards an industrial model that decouples revenues from material input by promoting real sustainability and then the circular economy, as opposed to the linear economy (mine, manufacture, consume, bury). Therefore, industrial enterprises, and more precisely manufacturing

HOT TOPIC

CT scan of industrial PCB with highlighted pins and tracks for segmentation process

ones, seek to integrate environment into their strategy by conducting an innovative rationalisation of production as promoted by industrial ecology. Professor Iung et al investigated the role of maintenance to contribute to the development of these paradigms. Usually, maintenance is defined as a combination of all technical, administrative and managerial actions during the life cycle of an item intended to retain it in, or restore it to, a state in which it can perform the required function. But most people focus more on the restoring or replacing meaning, and think that the role of maintenance is ‘to fix things when they break’, but the professional view is that when things break down maintenance has failed (i.e all maintenance should be predictive maintenance). This has led to a negative image of maintenance, to be recognised as a cost and only limited to the production phase. Nevertheless, due to the necessity now to optimise the costs (the costs for the maintenance is much higher than the acquisition and operation costs), the role of maintenance is changing as underlined by [18] through the vision of life cycle maintenance. Professor Iung et al.’s paper concluded that maintenance is now considered no longer as an aftermarket service needed for product (or system) functionality but rather really an inherent service function of the product (system). It has led to some existing maintenance services/processes contributing to the industrial ecosystem, such as those related to ‘green

The 3rd annual International Conference on Through-Life Engineering Services took place at Cranfield University on November 4 and 5, 2014.

Some business leaders are moving towards an industrial model that decouples revenues from material input by promoting real sustainability and then the circular economy, as opposed to the linear economy

maintenance’ requirements or TPM philosophy, but has also proposed innovative directions such as those related to a regeneration/restorative health management strategy or integrated energy management approach.

Perfect development space for big data

A big theme at TES Conference 2014 was data access and manipulation across many complicated systems. TES both requires and creates big data to make it work properly and, as Professor Andrew Starr of Cranfield University points out, this is “everybody’s 2015 problem: we have shed loads of data but what do we do with it all? Autonomous decision making for handling data remains a challenge; it’s not simple to get it robust.” Conversely, if TES can help to fine tune methods of autonomous data handling, the rewards will be vast. TES will be a commercial spur to help engineers to perfect software and protocols in the Internet of Things.

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 31

TM WoE Driving for growth ’s flagship event has gained momentum with each year of its existence, but this year it blew its predecessors out of the water with The Manufacturer Week of Excellence 2014. The festivities compiled five events, featuring key figures from industry, government and academia, discussing the big issues in the sector, giving delegates an opportunity to share best practice, as well as highlighting inspirational individuals’ waves in the industry.

The factory tour

he Manufacturer Week of Excellence began on November 25 with a factory tour of Vaillant Group, an international, familyowned company with a heritage of 140 years in providing energy-saving heating, hot water and renewables solutions. Delegates were greeted by plant director Jan Borkowski, who delivered an introduction discussing the firm’s rich history. Borkowski then joined forces with Allan Harley, health, safety & environmental manager to present on how the company uses lean practices. Harley also gave a talk regarding sustainability, which was followed by a tour of the zero emissions factory. Vaillant’s slick automation and commitment to sustainability is testament to its 2014 Superbrands Business index status. Its core values are centred on what it calls ‘special responsibility’ for the environment, its employees, and society, which equate to its strategic Sustainability in Environment, Employees, Development & Products and Society (S.E.E.D.S).

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Day one: The Manufacturer Directors’ Conference

n November 26, leading industry figures arrived in droves to Birmingham’s ICC to discuss and listen to trends and influences shaping the future of the sector at the first day of The Manufacturer Directors’ Conference (TMDC). The first day’s focus included: innovation; productivity; apprenticeships and the skills gap; the likelihood of a balanced recovery; and operational excellence. editor Callum Bentley began the proceedings with an overview of British manufacturing in 2014, as well as offering his predictions for the year ahead. Bentley noted positivity in industry referring to the latest Annual Manufacturing Report, saying: “75% of companies are still optimistic about the current state of play in the UK.” Bentley cited hitting automation targets, investment in technology and upgrades in IT infrastructure as being major achievements and focal points on the list of priorities. 87% of companies have taken on new staff in 2014. However, the skills gap, like the sword of Damocles, hangs over the sector with engineering positions being the hardest to fill. Delegates heard from Professor Sir Mike Gregory, head of the Institute of

The Manufacturer Week of Excellence

On November 26, leading industry figures arrived in droves to Birmingham’s ICC to discuss and listen to trends and influences shaping the future of the sector at the first day of The Manufacturer Directors’ Conference Manufacturing, who presented on ways to increase productivity in the sector; Unipart’s global logistics director Bernard Molloy explored capital investment in the apprenticeship paradigm; as well as Minister for Skills & Equality, Nick Boles, who sparked criticism from Molloy during his speech on the future of UK talent (bit. ly/UniMolloy). Boles also highlighted the government’s record investment in apprenticeships, as well as some changes still to be made, such as making each apprenticeship last a minimum of 12 months and to encourage employers to become more involved with the assessment

process. Molloy said that the current and previous governments were out of touch saying: “Government must realise that apprenticeships are not just for 12 months, they have to be fundamentally structured properly; and the money being invested in apprenticeships currently is not going to the apprentices, it’s going to training providers who are, in my opinion, not up to the mark in providing proper apprenticeships.” To begin the afternoon session, RBS market strategist, Neil Parker, who returned to the conference for a second year, sought to answer if an escape velocity can be achieved, can a balanced recovery ahead be expected? He said: “It was very different when I spoke at last year’s event, when we were coming out of a very deep recession.” But now, Parker says the UK is sitting right at the top in 2014 in terms of recovery. Inflation has been decreasing and continues to do so, with it now reaching a 2% threshold opposed to its 2% target. Day one was concluded by two presentations on operational excellence, firstly by Leighton John, head of production and operational excellence at the Royal Mint; and then Mark Hobbs, global manufacturing excellence leader at Electrolux AB. The Royal Mint prides itself on being the oldest UK manufacturer, having been in existence for 1,100 years, not to mention the third oldest globally. John highlighted the firm’s focus on employee empowerment, giving individuals the tools to raise issues and get them solved as soon as possible. Hobbs presented the lean journey of Electrolux AB identifying that “leadership as a key differentiator offering staff the opportunity to learn the difference between know-how and know-why.”

DRIVING FOR GROWTH

The Manufacturer Top 100

hat evening shortlisted candidates and the wider manufacturing community joined TV presenter and engineer Kate Bellingham at an exclusive event at KPMG’s Birmingham offices at Snow Hill, to celebrate The Manufacturer Top 100 report launch, sponsored by Lloyds Bank. The project aims to dispel myths surrounding manufacturing and create a platform to champion and publicly identify dynamic leaders and innovators in the sector. We asked our readers, the wider industrial community and the public, to vote, in no more than 200 words for: their most inspirational role models leading the way in changing the face of industry; the boldest in finding new markets; the most successful in making marked investment in people, processes and customers; as well as those young, bright sparks that are making an impact disproportionate to their years. The report was not ranked, instead shortlisted candidates were recognised for their very different, yet equal contribution to changing the face of manufacturing. Within the report, 20 exemplar individuals were highlighted including: JCB’s Lord Bamford; Dr Tony Bastock OBE of Contract Chemicals; Jane Atkinson Cape PLC and Dr Hamid Mughal Rolls-Royce; and Will Butler-Adams of Brompton Bicycles. David Richardson, regional managing director of Lloyds Bank Commercial Banking said: “It has been terrific to work alongside The Manufacturer to develop such an insightful and interesting report. “Our Manufacturers can be very proud of all that is achieved and we applaud The Manufacturer for starting to highlight the talent and start to feature role models and exemplars.” See a full list of the Top 100 at bit.ly/ Top100anoun

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 33

Day TWO: Day two highlighted: operations and supply chain management in the evolution of manufacturing; existing challenges in the sector; plugging the skills gap; and whether optimism in the future of the economy is a false dawn for manufacturing. While it is important to protect manufacturing and producing in the UK, professor of operations and supply chain strategy at WMG, Janet Godsell, said that there must instead be a focus placed on providing “the tools and techniques to better understand when we need to produce locally, regionally and internationally.”

ERP Connect

unning concurrently to The Manufacturer Directors’ Conference on day two was ERP connect, which for five years has contributed to changing the way UK manufacturers approach software selection by minimising the overall time and

The Manufacturer of the Year Awards 2014

Next to take to the stage was director of manufacturing at Roll-Royce, Dr Hamid Mughal who suitably captivated his audience by outlining manufacturing challenges and appropriate responses to them. Mughal stressed the importance of innovation for the future of industry, saying: “Continuous investment in innovation delivers better products and services on behalf of customers.

“What kind of standards do we need? We need basic standards, but they won’t take us too far. We need high quality best in class standards too, drawn from the core values of science and technology, so that we can take a systematic and balanced approach to robust manufacturing processes that drive step improvements.”

Winners:

Conor La Grue, head of commercial, procurement and supplier sponsorship for the Bloodhound SSC project, discussed inspiring British manufacturing. The final slot of the conference was filled by The Sunday Times economic editor David Smith, who deconstructed the idea of a balanced economy and pondered whether new optimism in the industry was a ‘new dawn’ or a ‘false dawn’. Smith explained: “Manufacturing is recovering reasonably well after a period of weak growth, though industry has yet to regain pre-crisis levels. “Reasons to be positive: productivity is rising; the sector is highly competitive; business investment is increasing; some re-shoring as a result of higher costs in China, for example; and any European upturn will disproportionately benefit exporters.”

effort involved in qualifying potential enterprise software vendors. Speakers included: Ian O’Toole, principal ERP consultant and Sean Jackson, managing director from Lumenia; Jason Stokes, IT coordinator of Hoshizaki; Mike Stanbridge, head of Business Systems at AB Agri; and Jim Astley of Promethean.

record-breaking crowd of almost 1,000 people from the manufacturing community donned their finest apparel to celebrate The Manufacturer of the Year Awards 2014 at the ICC in Birmingham. Delegates from every corner of the manufacturing community listened to keynote deliveries from Gadget Show host and innovation

enthusiast, Jason Bradbury; and David Smith, Financial Times economics editor. After the prizes were awarded, guests shook their tail feathers into the wee hours of the morning.

The Manufacturer of the Year 2014 Xtrac What a fantastic night, to win one award is special, to win two awards is great but to win the overall award has just been wonderful. It’s great tribute to our 280 employees and the shareholders back at Xtrac and our operation in America as well. Very excited. It’s been a wonderful night. Yes, we will be ambassadors for manufacturing. We make things, we export things and we’re very proud of that. Peter Digby, managing director

Manufacturing in Action Grainger and Worrall (winner), Worcester Bosch (highly commended) Fantastic achievement, terrific competitors, tremendous, really pleased, great for the guys back at Bridgnorth and Telford. James Grainger, director

34 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

The Manufacturer Week of Excellence

Leadership & Strategy Xtrac We are just so excited to have won this award tonight and luckily we’ve brought a whole table of guys all off the factory floor along. Xtrac is owned by 100% of the employees’ share ownership scheme, which is the best thing that we’ve ever done and so this is building on a fantastic year that we’ve had with record sales, a record order book and very exciting going forward looking at all the racing categories around the world we are expanding in to all sectors at the moment, so it’s going to be a really exciting year. Peter Digby, managing director

People & Skills Ginsters (a division of Samworth Brothers) We have won the award for our management development and technical operating training programmes, continuous investment in our training, to have a genuine skills strategy to make sure that our people are fit for the future. Richard Bain, production director

World Class Manufacturing Philips AVENT We are very proud to win the WCM award this year. Our journey started in 2009 and a lot of people have put a lot of effort in. We are really proud to receive this award tonight on behalf of everyone in the factory. Matt Norris, director of manufacturing and engineering

Innovation and Design Pryor Marking Technology This is a really big deal for us as an SME seeking to create the most innovative manufacturing solutions within the UK. We are very proud to win this award, we’ve done it with our customers and UK manufacturers who are seeking to mark and trace their components in manufacturing to the best of their abilities, and it’s something that we are doing globally so we are very pleased.

DRIVING FOR GROWTH

Exporter of the Year Rayovac MicroPower Division, Spectrum Brands (UK) It is delightful for us to win the Exporter of the Year award, it’s been a tremendous journey for us. We are part of Spectrum brands, we have 200 employees and we have grown year-on-year, it’s a credit to everyone in the plant, we are exporting to every market we can and will aim to continuously grow for as long as we can. Glen Rutherford, general manager

Alastair Morris, business development manager

Through-life Engineering Services ENER-G Combined Power For us it’s really important because it recognises the time and investment we’ve spent making sure that we look after our products and services right the way through their product life cycle, but I think we were recognised and awarded this for the work that we do both out in the community with the STEM ambassadors and the apprenticeship work we do.

Medium Sized Enterprise of the Year Xtrac We are really pleased to win two awards this evening. Medium Sized Enterprise of the Year, shows us the investment strategy we’ve done, the return that we get on the investment and also the fact that the whole company, owned by the entire workforce. Adrian More, technical director

Claire Burns, marketing manager

Supply Chain Excellence Selex ES It’s testament to the hard work and the strength of relationship that we have with our supply chain. It is a fantastic honour to be here and win this evening, it’s brilliant. Rob Craighill, site logistics manager

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 35

The Manufacturer Week of Excellence

DRIVING FOR GROWTH

Apprentice of the Year Rebecca Davies, MBDA UK I’m really proud to have won this award, it’s a really good achievement for me because I have finished my apprenticeship and come out with this award as well. I am really grateful to everyone who has trained me and the team for all the knowledge they have given, it’s a really great accolade for both myself and MBDA to win such a prestigious award.

Over the past few years I have been developing my career with my boss Mark, he’s given me loads of opportunities to explore.

Rebecca Davies, MBDA UK

ICT in Manufacturing Burts Potato Chips

Austen Cook, manufacturing development engineer

We are 100 people at the moment, five years ago there were 40 of us, in two years’ time we hope there will be 150 of us and an award like this just means a hell of a lot to the management team, but crucially to the people in the business who are working so damn hard to achieve this kind of growth. Mike Cosby, finance director

Small Sized Enterprise of the Year Burts Potato Chips We are absolutely delighted to have won, not our first but our second award this evening. Thank you very much to the organisers, this means so much to the guys back at the factory in Plymouth. Mike Cosby, finance director

he awards ceremony, organised by magazine and hosted at The ICC in Birmingham, attracted almost 1,000 guests from manufacturing companies and supporting organisations, a record crowd for the event. In addition to the winner and runner up of the overall award, 14 other category winners were also decided on the night from an extensive shortlist that showcased the best in British industry. Richard Hill, head of automotive and manufacturing at RBS, the headline sponsor for the event, said: “We are delighted to be continuing our support for The Manufacturer of The Year Awards and congratulate Xtrac on its success. “The awards ceremony is an incredible reflection of the diversity, innovation and expertise that British manufacturing has to show.

Young Manufacturer of the Year Campbell Ferguson, Spirit AeroSystems (Europe) (winner), Austin Cook, BAE Systems (highly commended)

“RBS has long been involved in the manufacturing industry, with teams across the UK dedicated to supporting our manufacturing businesses. “I’d like to congratulate all the winners for their achievements in the awards and also for their contribution to the sector as a whole.” extends its thanks to the sponsors of The Manufacturer of the Year Awards for making the event possible. In particular, our thanks goes to the event’s headline sponsor for eight years running, The Royal Bank of Scotland.

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Sustainable Manufacturing Vaillant Group What it means to me is everything, it demonstrates how good our team is, the commitment of everybody, to making a difference in the future. Allan Harley, health safety & environment manager

What a bank should be Charles Garfit, Head of Manufacturing, Santander UK

Whether small family companies or global corporations, we approach every business customer as an individual relationship. We strive to understand your unique needs and to make banking straightforward, so you can focus on growth. That’s why our clients get a dedicated, expert Relationship Director. We believe credit partners should meet you directly, so our decisions are as transparent as possible. We work hard to do right by you and your business now and in the long term. It’s thanks to this approach that we’re proud to say 4 out of 5 of our business customers would recommend us. Simple Personal Fair What a bank should be Find out how we’re supporting businesses like yours across the UK at www.santandercb.co.uk or email manufacturing@santander.co.uk GfK NOP Research: Santander Customer Satisfaction Survey Q2’14. 463 out of 586 Corporate customers gave scores 5, 6 or 7 in a scale of 1 to 7, where 7 is ‘Extremely likely to recommend’. Santander Corporate & Commercial is a brand name of Santander UK plc, Abbey National Treasury Services plc (which also uses the brand name Santander Global Banking and Markets) and Santander Asset Finance plc, all (with the exception of Santander Asset Finance plc) authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register numbers are 106054 and 146003 respectively. In Jersey, Santander UK plc is regulated by the Jersey Financial Services Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991. Registered oﬃce: 2 Triton Square, Regent’s Place, London NW1 3AN. Company numbers: 2294747, 2338548 and 1533123 respectively. Registered in England. Santander and the flame logo are registered trademarks. Santander UK plc is a participant in the Jersey Banking Depositor Compensation Scheme. The Scheme oﬀers protection for eligible deposits of up to £50,000. The maximum total amount of compensation is capped at £100,000,000 in any 5 year period. Full details of the Scheme and banking groups covered are available on the States of Jersey website (www.gov.je) or on request. CCBB 0579 DEC 14 HT

I told the guy I gave the job to project plan it, that I wanted the move to take no longer than three hours, and I think we were pretty successful in achieving that

Taking it to the streets I

Callum Bentley heads to beautiful Dorking to see how Johnston Sweepers is cleaning up its field after 75 strong years of street sweeper manufacturing.

t’s a common misconception that industrial plants should be excluded from the city limits, shunted to the industrial zones on the outskirts of modern cities. The idea is a hangover from the dirty, heavy industry days of the past, when noise, pollution and heavy traffic were rightfully seen as something better carried out away from the general populations’ eyes, ears and noses. However with the modernisation of today’s factories and manufacturing

processes, it’s becoming more common to see these facilities nestling in to more picturesque, countryside surroundings – some are even breaking down dated, preconceived ideas and making their presence felt in the midst of city centres. It is in one of these settings here in the tranquil Surrey countryside in Dorking amidst the vineyards that dominate the rolling hillside that you will find the new Johnston Sweepers factory. It’s by no means a small plant. However the fact

38 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

it is the most modern sweeper production plant in the world does it huge favours when it comes to straight up aesthetic assimilation with its surrounding environment. It should come as no surprise then that the facility itself was built with sustainability in mind – after all, the products rolling off its production line are the only road-going vehicles that actually work on a zero pollutant basis, collecting the dust and particulate matter as they go about their business. It’s here at the Dorking factory where I sit down with operations director, David Bishop and UK sales and marketing manager, Graham Howlett to talk about how this still young factory is pushing the boundaries of sustainability, driven by solid exports, inspired innovation and a truly engaged workforce.

Swept away

Prior to the new £11m Johnston Sweepers facility being officially handed over to management at the end of August 2013, the company ran its operations from three plants in Ash Vale, Sittingbourne and Dorking. The move was no small feat, with David Bishop stating the challenges of not only moving large amounts of kit, but convincing a significantly sized workforce to move with their factory. “We had a phased move,” Mr Bishop says. “The first thing we did was move skid production and the paint shop in September from within the Dorking site to the new building creating space for 4,500m2 fabrication plant to be transferred from Ash Vale in December. Finally, Compact sweeper production relocated from Sittingbourne in January 2014. “We went through a comprehensive consultation process with our employees. We gave them 18 months notice that we were going to move and put an incentive plan together, promising no job losses

Johnston Sweepers

unless they chose not to stay with the company. The plan was to move, support them with travelling, and for them to come and work for us for a minimum period.” It actually turned out that the Sittingbourne plant was ready to move six months sooner than the original 18-month time frame. However, Bishop says it was important to stick to the 18 months they had already outlined in order to keep their promise to the employees – a lot of whom were moving their home base. “The Sittingbourne plant was quite large and complex,” Bishop says. “It had no sheet metal working, but it had welding, painting and assembly of Compact sweepers which are 3.5 tonne and 7.5 tonne GVW vehicles. “At the time there were 100 employees to manage and we had to move that factory without any loss of output. I told the guy who had the job of project planning the move that I wanted it to take no longer than three hours, and I think we were pretty successful in achieving that. The production line being moved was a flow line. As each work station in the line completed the last build it was packed onto the back of a truck, driven an hour to the new site, unloaded in position and immediately re-commenced production. This took three hours per station and so loss of production was planned to be minimal. “It didn’t go perfectly, but I would say we lost no more than three days’ production”, says Bishop

Special feature

Innovation plays a huge part in Johnston Sweepers as global demands and regulations differ significantly

Back to normality

The new, more modern facility in Dorking meant that the business could now begin to focus on meeting a growing international demand for its products. This meant that new recruits had to be found. Johnston Sweepers has had a solid apprenticeship scheme in place since 2005, with Bishop stating that five per cent of the company’s total workforce is made up of apprentices. “In terms of training and investing in new people, after closing two factories and opening this new one we were in the situation of having 100 new employees, most of whom had never made an electrical or hydraulic connection before,” Bishop says. “On the assembly side we employed the National Fluid Power Centre to design a ‘three levels of training’ course specifically for Johnston. On level one, we’ve taken 60 people through a one day training course on hydraulics, cleanliness and the basics of hydraulics and electrical fitting. On level two the trainees learn how to read a hydraulic and electrical circuit but specifically using the components and circuits that fit on our machines. And on level three they cover fault diagnostics on our machines.” However, one of the most prominent feathers in Johnston Sweepers’ cap is the successful Welding Academy, set up to recruit new local talent to fill much needed positions in the company’s expanded weld shop. “We advertised it through Facebook and Twitter, and we got over 100 enquiries,” says Graham Howlett, UK sales and marketing manager. “Then we had an open day where anyone could turn up. We had a team

A social media-driven recruitment drive saw 13 new welding staff employed

of people who conducted the initial interviews and from those initial interviews we sent 43 people through to do a weld assessment.” From here, the applicants went for a more detailed interview with the welding manager, Julia Schmitz. From the 43 people they selected, 15 qualified for the practical training. 15 weld bays were set aside to do the training with new recruits under daily supervision for 12 weeks. New trainees also received one day per week in a classroom delivered by an outside expert. “Out of the 15, 13 were successful,” Howlett says. “There were different levels of capability at that stage. Some have gone on to manning robots, some have gone on to welding simple work and others have gone on to welding full

sweeper bodies, which is a highly complex application. The process proved very successful.”

The task at hand

Johnston Sweepers exports 70% of its products. The company is not exempt from significant global events, with demand fluctuating substantially depending on global economics and international policies and governments. Operating primarily in two markets – municipal and construction – the company tends to see

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 39

Johnston Sweepers

demand fluctuate as housing and construction markets increase. “It varies significantly. The UK market has recovered very strongly compared to other markets,” Bishop says. “The interesting thing that has changed is who we now have to sell to compared the past four or five years. We’re strong in Western Europe, but largely they’re not buying as much as they once did, so the big story in exports is trying to find new markets.” Howlett agrees, saying the UK housing market has had direct implications on the business. “The road surfacing sector has been quite busy after the government put quite a substantial amount of money there to replace and improve road conditions,” he says. “And then there’s the housing market. Councils require new housing estate construction sites to be regularly cleaned by a street sweeper so the housing market is an important sector for us as well - especially in the South East where construction has increased. This has made a significant contribution to increased volumes on the truck mounted sweeper market by about 40% over previous years.” But not every global market is the same, and as new markets are penetrated, R&D and sustainability must also follow in order to maintain competitiveness for Johnston Sweepers.

Keeping up appearances

The pressure on municipal sweepers to operate as environmentally responsibly as possible enforces constant pressures on the company to constantly develop and innovate its products. A sustainable factory is one thing, but sustainable products are another. “Most municipals are under pressure to be more sustainable in their operations so there is greater demand on their suppliers, such as ourselves, to supply

Special feature

Our robot welders operate 24/7 to meet the demand of UK and export sales

environmentally responsible products,” says Howlett. “More and more tenders now request details of our environmental policy, there is a huge amount they want to know about our impact on the local environment, on manufacturing; where it’s produced, and green miles. “The sweeper is the only vehicle on the road that captures particulate matter or harmful dust. Every other vehicle on the road puts pollution into the atmosphere; the sweeper actually captures that, which has an impact on air quality. “All of Johnston’s products already have the industry standard EUnited maximum three star rating but we want to take this even further, so have invested in our own facility to conduct dust capture tests as part of the development of a new European standard. The floor of the structure will be laid with a fine material – calcium carbonate – and the various machines will sweep through, capturing as much of the dust cloud as possible with air quality being monitored throughout the process.” The ultimate aim is to limit the amount of dust going into the atmosphere,

75 years Johnston Sweepers has been manufacturing sweepers in Surrey for more than

40 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

improving air quality in city centres. “We invested in our own test centre to allow us to conduct unlimited tests on-site as part of our environmental development programme,” says Howlett. “Each test performed by the EU regulators costs around 5,000 Euros making it very expensive to actually test how well your sweepers are performing, so it was a worthwhile investment to get all the development testing done in-house in preparation for official tests with the EU inspectors. “We’re also one of the only manufacturers to offer a water recirculation system on our sweepers, saving about 900 litres of water a day in a typical municipal environment, and significantly reducing the number of returns to base needed for re-filling. “It’s all part of our on-going drive to improve the environmental performance of our machines to make sure we are class-leading on sustainability,” continues Howlett. “We’ve done a great deal to improve things, not only in the manufacturing process but the way in that gets to the product. Our customers are very environmentally focused even though recession changed that a little bit more towards cost cutting. We have benefited from both and have focused heavily on fuel consumption as well. The new JCB standard engine we introduced into the municipal sector saves about 10-13% fuel over our previous engine that we supplied. All these considerations have made a significant contribution to the long-term sustainability of both our products and our business.”

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sectorfocus

While changes in technology are making their mark, it is concerns about quality, contamination and security in the lengthening supply chain that top the list of concerns for professionals in the food and drink sector, Ruari McCallion reports.

42 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

ood and drink is the largest manufacturing industry in the UK, according to the Food and Drink Federation (p48). It generates ÂŁ92bn annual turnover and employs 400,000 people. And it seems that things are looking up in the sector. Global Ambitions, a recent study by Lloyds Commercial Banking, found that England-based businesses have plans to invest, innovate, create new jobs and expand. No less than 89% of respondents said that they expect to grow over the next five years, to develop new products, and to enter new markets,

in Western Europe, the Far East, Asia and the Middle East, and to create nearly 70,000 new jobs in England over the next five years. Investment in production capacity, marketing and brand awareness will be required but UK manufacturers have advantages including product quality and brand heritage, according to Melanie Leech, director general of the Food and

Food and drink

SECTOR FOCUS

Britvic progresses from renovation to innovation

ritvic plc, the soft drinks company, has strong brand recognition but its product development had, for years, been based on ‘renovation’ rather than innovation, according to Ounal Bailey, director of strategic consumer innovation. A new strategy and varying experience has taught the company some valuable lessons – some easier and some quite painful. Robinson’s Fruit Shoot, a ready-to-drink squash/cordial packaged in a very colourful bottle, featured a new ‘magic’ sports cap, which didn’t release liquid until it was sucked. You could turn the bottle upside down and it wouldn’t leak, which was expected to appeal to both children and their parents. Unfortunately, it didn’t work as expected and a recall became necessary. A major lesson Britvic learned was the need to restructure its product development process, to enable it to innovate successfully and quickly, and to identify problems before they could become crises. A four-person team identified the need for a common procedure and an end-to-end

process in place. Adopting a common terminology would greatly reduce the risk of failures in communications. Understanding of the differences between design and manufacturing and between manufacturing’s wants and needs and those of the consumer, were also essential. “We now have an overall technical framework and an action plan in place,” Ms Bailey said. “We have introduced formalised review points and put in a lot of work to ensure we have a rigorous and robust process.” The new structure and approach was ‘live tested’ on the launch of Robinson’s Squash’d, a handy-sized squeezable, nondrip bottle. It works. “Consumer research led us to believe we had something outstanding in the marketplace. So far, so true,” she said. “We now have an organisational understanding that risk brings reward but we can mitigate risk through effective systems. We have also been able to increase speed of development. We no longer worry about systems; we can simply get on with the job.”

89% of respondents said that they expect to grow over the next five years, to develop new products, and to enter new markets, in Western Europe, the Far East, Asia and the Middle East, and to create nearly 70,000 new jobs in England over the next five years

Drink Federation – but that reputation has to be protected. Raw material and supply chain security should be a major priority. While the ‘horsegate’ scandal earlier in 2014 did not claim any lives, it demonstrated that something was wrong. If meat products can be contaminated with ingredients that simply should not be there –

sometimes, up to 100%. That’s not accidental; it’s fraud.

Gone without trace?

The introduction of the EU-wide Track and Trace regime, nearly 10 years ago, was supposed to have ensured that it would be easy to identify where product came from, at every step of the chain, and to make measures such as recall much faster and more effective. The e.coli O104:H4 outbreak in Germany in Spring 2011 exposed those aims and beliefs as shallow and misplaced. The German food safety system itself was shown up to be inadequate.

It is not unfair to say that the responsible agencies had, for several weeks, no idea where the e.coli had come from, or how. They had inadequate procedures for obtaining evidence and finding out. Unfounded accusations against Spanish suppliers caused a $200m-a-week economic blow that was the last thing that country needed. Eventually, fenugreek seeds, imported from Egypt and sprouted at a farm in Germany, were identified as the source. But not before 3,950 people were affected and 53 died, 51 from Germany itself.

Too long, too complex

There appears to be a growing consensus that supply chain length and complexity makes failures inevitable. According to the Stericycle European Recall and December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 43

Food and drink

Edward Brunner demonstrates Hoppier’s added-hoppiness to a discerning customer

Hoppier: tailored flavour

nyone who has sampled different beers around the country will know that flavours, textures and fizziness vary. Cambridge Consultants’ Hoppier project takes personalisation pretty much to the ultimate level – the individual consumer. Hoppier looks like a conventional beer pump but with something that looks like the container that holds coffee in an espresso machine – and it performs a similar function. Ordinary IPA bitter forced through a container holding ground hops will taste very much more hoppy, and in about the same time it takes to pour an ordinary pint. Edward Brunner, head of food and beverage systems at Cambridge Consultants, explained that this is an example of how it transfers its expertise in fluid technology and beverage systems between different industries.

Notification Index for Q2 20141, the overall number of notifications across food rose nine per cent compared to Q1. There were spikes in certain industries: recalls in meat (non-poultry) increased by 71% and were led by New Zealand, with 44% of meat recalls during the quarter, mostly to do with frozen lamb. Reputational damage to businesses and in consumer perception can be crippling. Joydeep Sengupta is global practice head - Retail Consulting for Consumer Products, Hard Goods, at ITC Infotech, which specialises in providing IT solutions to the banking and finance, consumer packaged goods and other sectors. “The 2013 horsegate scandal cost ABP Group over £80 million in contracts with Tesco and Aldi. Hudson Foods lost a $25m contract with Burger King after a previous e.coli contamination,” he observed. “These adulteration cases were all due to a lack of visibility to complex global supply chains and a dearth of adequate testing, supplier audits, and inspections.”

“Pressure is fundamental to extracting flavour in espresso machines; part of our investigation was to see whether it does anything for beer,” he said. “As a result, we have speeded up the dry-hopping process and, by adding extra hops at the point of dispense, their volatile aromas are as fresh and intense as possible.” The possibilities are pretty wide. Coffee is an obvious one, whether for Porter (stout) or for seasonal beers. Fine-tuning in order to satisfy local tastes is another; the attraction to the beverage supply chain is that personalisation can be done at the point of sale, rather than on a large scale at the brewery.

44 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

Lessons to learn? Auto has already gone through the process of volume production of diverse products and dealing with a long and complex supply chain

1: Published September 2014

SECTOR FOCUS

IT solutions are part of the solution but they have to be made to work effectively. A company called Muddy Boots supplies Web and mobile-based software systems to manage and maintain quality assurance and compliance throughout the food supply chain from grower to retailer. Its has more than 2,000 food business customers in over 40 countries around the globe, including Marks & Spencer, Waitrose, Unilever and Coles Supermarkets in Australia. It has embedded a business intelligence system into its solutions.

Analytic solutions

“We needed an embedded analytics system that would allow us to give our customers optimum value from both the data we capture, and from third party data – such as a food processing plant and a retailer,” said Jeremy Pile, technical director. “Increasing visibility and real-time insight allows our customers to understand how a producer is performing, ensure products match the required quality specification, and then make qualified business decisions.” Muddy Boots claims that its Logi-powered dashboard gives teams a real-time view of its supply base performance. Morrison’s claims that it has enabled it to drive significant efficiencies through waste reductions, as well as to identify and mitigate risk. But the world is changing, according to Will Hayllar of OC&C Strategy Consultants. “Producers and suppliers are trying to work out how to reconfigure their businesses in an industry that is becoming a ‘channel’ landscape,” he said. “With the rise of discounters,

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December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 45

Food and drink

SECTOR FOCUS

Blippar

lippar, a recent addition to the range of apps for smartphones and hand-held devices, is squarely aimed at food consumers. Select Blippar, point the photo lens at an example of a growing range of linked products and you will see recipes, contents and even a ‘trolley game’, in which you have to collect the ingredients needed to make the product. Blipping the label on a Heinz Tomato Ketchup jar opens an augmented reality recipe book. You can turn the pages, download recipes or watch a video of the recipe being made by a chef. A Pepsi can featuring Messi’s face can be blipped to play a football game, watch exclusive videos and link to The Beautiful Game album in iTunes.

The Mash Direct family

Mash Direct: perfect mash-up

ash Direct was established 10 years ago and has one of food and drink’s shortest supply chains. Raw material comes from the owner-family’s own farm in Northern Ireland, or from near neighbours. It is processed on site, packed, and sent to retail outlets including supermarkets and convenience stores, catering outlets and food manufacturers across the UK and Ireland, as well as Dubai, Abu Dhabi and New York. The company only sells under its own name and thus retains control of quality and brand reputation.

Blippar app in action

changes within retailers themselves, the growth of online shopping and changes in shopper behaviour, there is a longer-term trend to ‘tailored’ offers. Manufacturers are prioritising effectiveness over efficiency and the future may not be about the absolute lowest cost.” Longer and more complex supply chains; increasing variation; more choice – it all starts to sound like the auto industry.

Lessons from auto

“It is very much the same process – auto has a lot of lessons for the food industry,” Hallyer said. There are headaches for suppliers, who have to be careful about producing exactly the same SKU for different markets; they have to avoid read-across. Different sizes and package flexibility are among the favoured solutions. But the change is fundamental. “One of the things that food manufacturers are just now getting into is working out where scale efficiency is very important and how to marry that to tailored finishing,” he explained, and

drew comparisons with the ‘shared platform’ solutions adopted across large auto companies like VW and even across different OEMs. But one area where he does not expect a big shift is in ‘own-label’ products. “If manufacturers have the opportunity to produce under their own brand, and that brand means something to the customer, then that is probably the first choice. If a private label is not differentiated then the consumer will not protect your business.” In a diverging market, confusion and uncertainty will offer opportunities to those agile and best prepared to see them and exploit them. It’s a tasty – if confusing – world.

46 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

From its original mash and spring onion product, Mash Direct offers a range of mashed root vegetables, from dish accompaniments up to veggie burgers, blended together and ready to heat then eat. Jack Hamilton, son of founders Martin and Tracy, explains the ‘Mash Direct difference’. “We approached manufacturing from the vegetable perspective,” he said. Quality was a key focus from outset. “We couldn’t find what we wanted on the market so we designed our own steam cookers.” As soon as produce is harvested it is sent for cooking and then blast-chilled. The short distance from field to packaged product stabilises the product and eliminates the need for artificial preservatives, colourings or flavours. Mash Direct’s ambition is to continue to grow, which means innovation. “We cannot afford to lag behind; we have to keep ahead of fashion,” said Hamilton. “We also have to invest in capacity. Our major customers need us to supply them at all times; we make sure we have 20% capacity to spare.” Mash Direct’s portfolio currently extends to 40 products and rising. It has built a new 25,000 sq ft factory and is expanding into it, a bay at a time. Ten years ago it had four employees, all family members; now, it has 140. Freshness and a focus on quality seem to have caught the market’s taste buds.

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INTERVIEW

Hungry for more After nine years as Director General of the Food and Drink Federation, Melanie Leech has decided to pursue a new challenge. Callum Bentley sat down with her to speak about the Federation’s high and lows during her tenure.

or someone leading a major organisation responsible for guiding the UK’s largest manufacturing sector, Melanie Leech, outgoing director general of the Food and Drink Federation (FDF), speaks with a subtlety and demureness that almost shouldn’t fit her title. Perhaps it’s the fact she is speaking with a journalist. I think it’s more so the fact that she lets her knowledge and passion for the sector speak for itself.

I’m speaking with Leech following the announcement last month that she would be leaving her position to take up a new role at the British Property Federation, a move she says she is making with mixed emotions. “I’ve had an absolutely fantastic nine years working for the food industry and it’s a great industry to be part of. The agenda is constantly moving there’s always been new challenges to tackle, and honestly it doesn’t feel like

48 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

nine years. It still feels as though I’m stepping out into an ongoing, immensely challenging and rewarding role. “But equally there comes a time when it is the right time to move on and look for a fresh challenge. This is that time for me.” A switch from food and drink to property seems like a jump from day to night-the two couldn’t be more polarising. Not so, according to Leech, who enthuses her fascination for her upcoming role. “It’s another high profile and challenging job and I know I can add value there,” she says. “I think I can benefit from a fresh challenge and I think both organisations will, because someone will come in and look with fresh eyes at what we’ve been doing here and bring something new to the agenda, and I hope to do the same at British Property Federation. “Food and drink will be a hard act to follow. For me what makes food and drink special, and I see again these

Melanie Leech, Food and Drink Federation

opportunities at the British Property Federation, while also a high profile sector and an important sector to the economy, it’s also a sector where you can see social issues playing out.” The social issues to which she is referring include inequalities around the kind of influence a sector can have on society; whether that’s building an environment, or incurring a greater influence on the “fabric of society”, all of which are just as relevant in both food and drink and property, she says. This almost altruistic outlook no doubt stems from Leech’s background in the civil service, including a role as a metropolitan police officer after graduating with a mathematics degree from Oxford University. She has also held numerous government roles in areas like Home Civil Service, Department for Culture, Media and Sport, and the chief executive for the Association of Police Authorities. But despite her optimistic outlook for the food and drink sector, as with every manufacturing sector in the UK, it comes with both its challenges and champions.

Point of pride

The FDF has taken on some substantial projects and agendas under Leech’s tenure. One in particular, the Health and Wellbeing agenda, she speaks about with vigour. “Front of pack labelling became very contentious and very polarising, it was a very fractious issue,” Leech says. “But something that people often forget is that the UK was absolutely at the forefront globally, in leading the way with industry on a voluntary basis in terms of giving front of pack, at a glance information. And we led that, and I’m really proud of that. We didn’t only just do the labelling, but we invested quite a lot of money in industry in helping consumers become more aware of the labels and to be able to use and to understand them.” The project was of particular note due to the fact, as Leech explains, it being one of the only times FDF had a direct, consumer-facing focus. Also high on Leech’s list of achievements is the FDF’s Five-fold Environmental Ambition – a framework to which companies commit to reduce their environmental impacts in a few vital areas such as greenhouse gas emissions, water, waste, and transport

INTERVIEW

A legacy The food and drink sector, as successful as it may be, still feels the pinch of a skills shortage. If anything, with its impressive numbers on growth and innovation, it might feel it more so than others, Leech explains. “The sector needs to recruit 137,000 people in the next five years, and when you’ve got a workforce of 400,000 people that’s a huge chunk,” she says. “Within that we’ve got skills shortages in some of the key disciplines such as food science and technical roles. Bundled with middle management, supply chain and process, and in engineering, which is probably the biggest one of all. I think there are about 87,000 engineering places across all industries wanted and about 46,000 people coming out of universities each year with engineering degrees. “We are doing a number of things about that, from our careers work trying to attract more people to think about food and drink manufacturing as a career of first choice through to the new degree that we are sponsoring at Sheffield Hallam University.” The course is Master’s Degree in food engineering. The first 15 students have just finished their first semester, with support coming from £2,000 financial assistance form FDF, as well as both FDF members and non-members offering work placements. “We’re already seeing the impact of having the course up and running and of having students who can talk about the course,” Leech says. “The interest is off the scale compared to this time last year. It’s a tough gig to try and build a new degree course from scratch, so we’re delighted that we’ve got 15 students and we’re ambitious to get to 40 if not next year, by the year after.” miles. However, a point of contention within the sector is the fact that despite being known for its substantial energy demand, the UK government still does not recognise food and drink as being an energy intensive sector. “It’s a deep frustration to us because if you look at the sector as a whole, we’re not as consistently high as an energy user as some other areas. But within

the food chain, different categories are incredibly high energy users and certainly would rank alongside some of the other industries that classify as energy intensive,” she says. However, the energy issues facing the sector do not have to signal dark times, according to Leech. “I try to turn it around and say there is an opportunity there. There’s a real

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 49

Melanie Leech, Food and Drink Federation

incentive for companies to reduce their energy bills by using energy efficiently and by driving down the impact of energy costs in their overall mix, and they do that very effectively. “Consumers have seen a great deal of protection from the impact of rising energy prices and rising

BIOGRAPHY Melanie Leech 1981- 84:

BA (Hons) Mathematics: Oxford University

1984-88:

Police Officer, Metropolitan Police

[civil servant from 1988-2005] 1988-92:

HM Customs and Excise

1992-95:

Private Secretary to the Secretary of the Cabinet and Head of the Home Civil Service

1995-99:

Department for Culture. Media and Sport – Head of Arts and then Broadcasting Policy

1999-2001: Director, Office of the Rail Regulator 2001-04:

Chief Executive, Association of Police Authorities (on secondment)

2004-05: Communications Director, Cabinet Office 2005:

Director General, Food and Drink Federation

Jan 2015: Chief Executive British Property Federation

commodity prices. We’ve tried very hard to insulate consumers as far as it is possible - but there comes a point when that’s no longer possible. But if I look at it positively, for example in our commitment in our Five-fold Environmental Ambition, we had a target to reduce them in terms from a 1990 basis by 30 per cent by 2020. That’s while we’re increasing production. So we’re not only doing more, but we’re going to measure ourselves in absolute terms against the baseline in 1990, and we’re going to hit that target by the end of this year - six years early. “What it shows you is that it has created a real incentive which has driven a positive change for the industry, and that’s the best way and the easiest way to attract new companies into the environmental ambitions and to remind them that they can reduce their input costs, whether it’s water or energy by using those resources more efficiently and then you’ll also reduce the environmental footprint of the industry.”

A fluid and well backed sector

During Leech’s tenure, the food and drink sector managed to invest £1bn a year in innovation. Last year alone 16,000 new products were release into the market, Leech says. The sector has also shown positive growth in exports consistently over the past eight years. “You can see we have the characteristics of a sector that is confident about itself, that is ambitious to grow and is doing the structural things that will help focus us,” she says. “There is always more you can do, but it’s also an area where we’ve found a genuine partnership with government. The work we’ve done with exports has been done genuinely in partnership with ministers who are really standing behind and talking about food and drink, at home and overseas. I think the Government has done a lot of good policy things around the skills framework and that’s enabled us to unlock the ambitious companies on things like apprentices. We’ve quadrupled the amount of apprentices in the sector and now we’re in the Trailblazers scheme defining standards, creating higher level vision for apprenticeships. Generally you can see policy has gone hand in hand with industry action and that’s driving forward on growth.”

50 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

INTERVIEW

Melanie Leech’s best and worst career moments Best: I am torn between being in Downing Street in December 1993 when Prime Minister John Major and Taoiseach Albert Reynolds signed the Downing Street Declaration as a significant step forward on the road to peace in Northern Ireland, and being in the audience as the government’s Head of Arts policy at the gala reopening at the Royal Opera House in 1999. Both special evenings in very different ways. Worst: I remember as chief executive of the Association of Police Authorities being at a meeting with chief police officers at their headquarters on the afternoon of 11 September 2001. No-one who witnessed it will ever forget watching the terrorist attack on the twin towers of the World Trade Centre unfold, and its visceral human impact, but being in the heart of UK policing and closely involved in discussions about the framework for ensuring the UK’s security gave that afternoon and the subsequent weeks a particular additional significance for me.

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interview

James Selka

CEO of the Manufacturing Technologies Association the broadest range of advanced manufacturing and is the future of the MTA. Graham did a sterling job and I’m really looking forward to being able build on his work.

You took over from Graham Dewhurst as head of the MTA in the summer. What have you identified as some of your immediate objectives in the role?

The key objective is to make sure we live up to our name - changing our name to the Manufacturing Technologies Association was vitally important, and means I have a great opportunity to establish us in representing all areas of advanced manufacturing. We’ve already made excellent progress and our membership is already expanding across the sector including Huddersfield University becoming members. This diverse membership base represents

We are famous for MACH and the massive impact it has on our members, and we want to ensure that they know about all the great work we do, and how they benefit from it

Under your predecessor’s tenure, the MTA increased its membership by 30%. How will you look to engage with new members across UK manufacturing? Since I started in June we’ve seen even further growth, so we are continuing to build on the great work from Graham. We are looking to further enhance our offer and plan to engage with our members over the coming months to provide a more comprehensive and valuable service. We are famous for MACH and the massive impact it has on our members, and we want to ensure that they know about all the great work we do, and how they benefit from it. The MTA’s technical committee play a leading role in both the UK and EU standards committees, and undertake research that includes the UK’s best and brightest machine tools experts - as the technology gets better their brain power is available to MTA members as a resource.

You joined the MTA with over 25 years’ manufacturing experience. What do you see as some of the opportunities and challenges in UK manufacturing at present?

This one is dead simple. As an industry we need to offer better and more confident access to automated solutions. It has been said that we are 20% behind our EU and global colleagues in productivity. Many OEM organisations already have sophisticated

52 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

technology. However, the same cannot be said for all of their supply chains. The MTA can play a role as advocates to SMES to confidently engage in more automation, as well as related things such as computer modelling or creative finance solutions. There is also much more scope to what I call ‘servisation’. As an industry, we still tend to tell our customers what the offer is, such as saying a new item will be available with an eight week lead time – we need to be offering more flexible and tailored services and options – the most successful manufacturers already do this, but it needs to become the norm. Our customers are going to demand more risk sharing, particularly as we struggle in the face of the skills shortage we know we are going to face.

This year’s MACH event attracted over 23,000 visitors and £1.6m generated in business. Planning is already underway for 2016’s exhibition. What can you tell us about this so far?

It’s 17 months away but planning is well under way and we’re already seeing lots of interest. We’re about to close the second ballot for exhibition space (November 4), for stands of less than 200m2. This will build on the already completed and very successful first ballot for the stands over 200m2 – we’ve already got the big machine tools companies on board and expecting many many more. Add to this that Airbus were the first OEM to confirm their attendance and we’ll soon be announcing a few other significant exhibitors and attendees, it all goes to highlight the important and profile of MACH, and that MACH 2016 is already shaping up to be the biggest and best MACH to date.

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hey say charity begins at home. But why not the production line? Lean has been expanding to an ever more diverse list of industries and sectors and has now reached the charity and non-profit sector as a way of saving money and creating a more professional environment. With budget cuts over the past few years, many organisations have struggled, and the charity sector was one of the hardest hit. In the November edition LMJ we explored this relationship and the adoption of lean that has been a lifesaver to some charities.

Iss ue

9 Vo lu me

| November 2014

| www.leanmj.com

A LEA MEANN, MACH GIVING INE Explorin g

voluntar the role of le an y how it’ and charitabl in the s helpin e sector g s trouble d finan non-profits th and ci rough al times Organisa tio

ns an edition include: d interviews fea Stroke Guide Sco Dogs, NCtured in this Ltd, Co tland, St. An VO, Ch dre mm Bill Bello onwealth Ba w’s Universit est Heart and y, CCBR nk of Au ws. T, Luxu stralia, s Joseph Ricciarde IN THIS ISS lli, Lean lea UE: ders: de world: vel op ing peop LM le in the improvem J interviews Mi de chael Gr ent co vel turn to ogan, the oping LSS in ordach at one of co the ntinuou the troub er s les in bri to deliver a be first hospitals in Africa nging lea tter to n to the standard of Beyond car develop budg ing wo e and grips wi eting: the wh rld. at and th the Blackw beyond budg eting wi why: Get to ell, head th and Str oke Sco of fundraising Penelope tland. Sh for Chest and div erg e , work tog ences betw shows the sim Heart een ether for ilar a comm lean and how ities Lea the two on goal. services n guidance: Ste for organisa Guide Dogs ve Vaid, direct or tion go exp of lains to mobility t behin and the LMJ d lea dif based ch ficulties involv n, the chan how the ges it ha arity in ed in sur s a recess wr viv ought, ing as ion and Clash of how lea a donationclans: Ma second n has he x Cadre art lped. professio icle on his ser w, returns wi th the ies on lea nal envir n in the onment.

Lean Management Journal editor Andrew Putwain highlights some of the articles from the latest edition of the LMJ which focuses on exploring the ideas of being a good employer in a lean enterprise.

hose new to the voluntary sector may be surprised to learn that there are over 160,000 UK voluntary sector organisations with a combined annual income of £40bn and employing around 800,000 people. Not small by any standards. The sector has changed enormously over the past 25 years, partly driven through the growth in delivery of social care services which are part funded through government contracts. Government funding has proven to be a two edged sword in that it has provided money, but the greater reliance on government contracts has brought with it the risks associated with funding cuts. The recent years of austerity have placed enormous pressures on voluntary organisations, both directly through reduced contract funding, and

Lean in the voluntary sector Nigel Kippax, is Head of Consulting and Training at the National Council for Voluntary Organisations (NCVO), the largest umbrella group for voluntary and community sector in England. He explores the voluntary sector’s relationship with lean and how they benefit one another. The recent years of austerity have placed enormous pressures on voluntary organisations, both directly through reduced contract funding, and indirectly through reduced individual giving indirectly through reduced individual giving. When the financial situation took a turn for the worse in 2008/2009, my conversations with sector leaders were often couched in the idea that obviously no one knew what would happen until the government produced its spending review. Later, and once the review was published,

54 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

the response included an element of procrastinating as everyone waited on what specific impacts that would have on any one charity. As with many major challenges there was a tendency in some quarters to wait and see and continue with charity as normal while government cuts were announced. Eventually, however, the challenges of operating within an environment of reduced financial income became clear. Many leaders then looked a well tried and tested route to meet these challenges.

www.leanmj.com

Beyond budgeting: the what and the why Penelope Blackwell is Director of Fundraising for Chest Heart and Stroke Scotland. Here she writes about beyond budgeting and its uses in the charity sector.

harities are cause-motivated businesses. Often described as notfor-profits, they are better described as for-impact. Yet surprisingly, charities spend a lot of management and trustee time focusing on variance and the bottom line, rather than putting in place systems that focus on their all-important impact. Impact - which could be described as how well you deliver against your strategy - is important not only to charities, but to every lean business. And returning strategy to centre place by releasing the time, energy and motivation of staff by abandoning command and control is one of the key themes of beyond budgeting. How then does this link with lean? As with lean, beyond budgeting is so much more than a set of tools. It is in fact a philosophy that shares with lean an antithesis to command and control through the decentralisation of decision making to front line staff. In Toyota, we see staff empowerment, staff-led design and visibility to the front line, themes that also run through beyond budgeting. It is no surprise Toyota practices both lean and beyond budgeting.

Charities are cause-motivated businesses. Often described as notfor-profits, they are better described as for-impact

Lean manufacturing

Lean leaders: developing people in the developing world Michael Grogan has been based in Dar es Salaam, Tanzania for 18 months working for the Comprehensive Community Based Rehabilitation in Tanzania (CCBRT) introducing lean and efficiency models to an organisation striving to provide high quality healthcare in a low resource setting. : What’s the biggest challenge in implementing lean? MG: People may expect me to say resources or the people- and their limited exposure to education, or even professionalism. That was my answer a year ago. Now, my answer is me. The person I had to change the most is me. I had to learn there’s no bad students only bad teachers. I had to adapt my take on LSS to this situation.

The go see mindset is the most beneficial, the people I’ve worked with have learnt the most from lean with this idea. Classroom environments, which I was comfortable with, are ineffectual on its own

: What’s been the most beneficial? MG: I’ll put this in this context: we have 460 staff and I’m the only continuous improvement coach. One word to describe here is habits. I’m trying to create new habits for leaders of continuous improvement. I’m trying to coach problem solving. I’ll fail if I don’t achieve a change in habits. The go see mindset is the most beneficial, the people I’ve worked with have learnt the most from lean with this idea. Classroom environments, which I was comfortable with, are ineffectual on its own. : So what are your plans for the future of LSS at this organisation? MG: We’ve got a big dream and I want to share it: our dream is to make this hospital, which serves the poorest of the poor, the model hospital for continuous improvement in Africa. We want to problem solve, develop people, and develop leaders. We want to show people what this looks like. For example, Thedacare, in the US was one of the first hospitals to embrace lean, 10 years ago. And now they get thousands of visitors every year to learn about lean.

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 55

eon

Peak performance David Topping, E.ON’s Director of Corporates, discusses the impact of peak prices on customers’ energy costs.

ike the demand for many commodities, energy demand varies considerably depending on a number of factors, including season and time of day. However, as yet, there’s no way of storing significant amounts of electricity so the challenge is that supply and demand must be balanced in real time in order to keep the lights on. Spikes in demand are relatively infrequent but power blackouts would be hugely disruptive to industrial consumers so it’s vital the whole supply chain is able to cope at points of peak demand – from generation to distribution. The cost of reinforcing the UK’s infrastructure to cope with these peaks is high, even though this capacity isn’t needed most of the time. The industry regulator, Ofgem, has signalled to the market that we need to reduce those peaks in demand. Because of this, the costs associated with the infrastructure - transmission, distribution and standby generation charges - are increasingly being set based on energy use at peak times. This is on top of the cost of the energy itself, which is also more expensive when demand is high.

ENERGY

be ten days separating each Triad. In winter 2013-2014 Triads occurred on November 25, December 6 and January 30, however between 1990 and 2014 a number of patterns have emerged: Triad periods are most likely to happen on a Monday The most likely half hour for a Triad to occur is between 5.00pm and 5.30pm

Peak charges affect large business customers, regardless of the type of contract they have. For those with fixed prices, these costs will have been built in but reducing consumption in peak periods will benefit future contracts. For others these costs are passed on as they are incurred, so being able to manage consumption around peak periods could be an important factor in managing and, therefore, reducing energy costs with immediate benefit. We believe there are a number of practical steps businesses can take to help them manage these charges.

There’s the potential to make significant savings if businesses are able to reduce load at these times and we provide our customers with a free Triad warning service. This gives businesses the opportunity to take short-term steps to help reduce their consumption. Such steps will vary between businesses, but could include: Adjusting shift timing Avoiding batch processes, e.g. kiln drying Switching off heating or air handling systems Reducing compressed air pressure or depleting buffer storage Maximising the use of onsite generation

Triad management

Enduring solutions

Perhaps the most prominent of the peak charges are known as Triads. Triads are the three half hour periods of peak demand that occur between November and the end of February. National Grid identify them and use the information to set a capacity charge to cover the cost of ensuring the availability of this peak electricity. Forecasting the Triads is not easy - they’re calculated retrospectively and regulatory rules mean there must

Energy prices vary throughout the day. This is a typical price distribution of within day costs – showing the peak period when Triad’s typically occur

In the medium term there are opportunities for businesses to focus on more sustainable opportunities to shift load away from more expensive peak times into cheaper off-peak periods. Such an approach should be data led and manufacturers should analyse their consumption data to understand what’s driving their patterns of energy usage. To help our customers achieve this we recently launched our energy toolkit. The focus on peak charging is likely to continue as it’s predicted that the balance between supply and demand will get tighter over the coming years. With this brings the opportunity for businesses to engage in demand side response activities, which ultimately provide the ability to earn income from demand management, rather than just avoid cost - which may support investment in new assets such as onsite generation.

FURTHER INFO:

Figure 1: Indicative graph based on published rates and E.ON forecasts, Apr 2014 - Mar 2015

56 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

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Manufacturing Leadership

standards. PPE should be used when all other measures are inadequate to control exposure to aggressive solvents. There is no doubt that PPE plays a definite and valuable role in keeping workers safe from harm. For example, while 15% of workers have to handle dangerous chemical substances as part of their daily tasks, wearing gloves has been proven to reduce the relative risk of injury by 60%2. However: PPE only protects the wearer It is ineffective if not working or fitted properly Theoretical levels of protection are seldom reached in practice The use of PPE always restricts the wearer to some degree The psychological effect may be such that the individual wearing the PPE feels more protected than he or she actually is. If PPE is properly used, stored and maintained, it can prevent workplace injury and lost man-hours

Dangerous substances contribute significantly to the 350m working days lost through occupational ill-health and to the suffering of over 7m people who are victims of occupational illnesses in Europe.1

usinesses work with aggressive solvents, as they’re a necessary evil in the production process. But the use of harsh and aggressive solvents can have a serious impact on productivity. They present a danger to workers, whether it’s in the form of irritant contact dermatitis, or longerterm damage to health. That can

The psychological effect may be such that the individual wearing the PPE feels more protected than he or she actually is. If PPE is properly used, stored and maintained, it can prevent workplace injury and lost man-hours

mean lost man-hours in injury and sickness. Which in turn leads to a slowdown in productivity, with detrimental impact on delivery schedules and production targets. It’s a balancing act - businesses are under pressure to maximise productivity, while at the same time, they are committed to ensuring the health and safety of the workforce. So what can be done to protect the workforce - and protect productivity? The answer is actually very simple, and lies in familiar supplies. Personal protective equipment (PPE) can give the workforce the protection they need. Types of PPE include: Protective gloves Eye protection Respirators Protective clothing Protective footwear Clearly, it’s essential that the PPE companies provide is fit for purpose and meets agreed health and safety

58 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

Yet this is only a partial solution to a bigger problem - the use of harsh and aggressive solvents. As well as providing PPE that is fit for purpose and effective, another way to protect workers is by limiting their exposure to dangerous solvents and fluids. Optimising solvent consumption, substituting less harsh solvents and increasing worker training/education around solvent handling and storage can all contribute to a safer work environment. No matter how well businesses know their own shop floors, a fresh pair of eyes will often find new risks - and new solutions to help keep productivity up. That’s why we recommend conducting a Waste & Hazard Walk with one of our experts. Waste & Hazard Walks are a proven way to identify opportunities to reduce risk. They’re very easy to arrange, and often throw up surprising results.

FURTHER INFO: To read more how PPE can play a role in minimising the impact of aggressive solvents go to: www.kcprofessional.co.uk/ solutions/WM2014

1, 2 - Source: OSHA Europa

EEF

Make it Britain manufacturing a renaissance As eyes turn towards the next General Election, EEF’s flagship National Manufacturing Conference: ‘Make it Britain – manufacturing a renaissance’, on February 26, 2015, is bringing together the who’s who of manufacturing for one of the UK’s premier manufacturing conference of the year.

Manufacturing Leadership

This year’s key note speakers include:

Martin Wolf CBE, chief economics commentator at the Financial Times will provide a briefing on the global economic environment and trends in key markets. Rt Hon Matthew Hancock MP, Business, Enterprise and Energy Minister, will be speaking and taking questions on the Conservative party’s plans for supporting manufacturing in the next parliament

The morning panel session, ‘Best of British Manufacturing’, will feature industry best practice including Tony Walker, deputy managing director of Toyota UK and Nicola Salter, HR director Williams F1. This will provide delegates with the opportunity to hear from

and quiz industry leaders on how these firms are achieving success and the factors that are driving this. The afternoon panel session, ‘Sustaining the Renaissance – 20 years on’, looks at the opportunities for manufacturing over the next 20 years, how different industry might look in two decades’ time, and, what manufacturers need to do to prepare today. Key speakers include Dick Elsy, chief executive, High Value Manufacturing Catapult and Brian Holliday, managing director, Siemens Digital Factory. As always, there will be further keynote speeches from senior political figures, which will be announced closer to the event, as well as interactive sessions with voting and plenty of opportunities to network. This year the Conference is also CPD Accredited, so you and your employees will be able to count your attendance towards your personal development goals. FURTHER INFO: Further details can be found at manufacturingconference.co.uk

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December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 59

Positioning for growth series

Consolidation

Watchlist: Input costs, engineers the sector needs, and the UKâ&#x20AC;&#x2122;s manufacturers had Academy estimates that 600,000 new skills, and Europe a great 2014 and many engineers and 450,000 engineering According to Neil Parker, economist technicians will be needed by 2020. and market strategist at RBS, the most indicators are pointing to important issues for manufacturing a bright future. However, in 2015 are input costs, the health of Innovation depends on European export markets, and the high-level skills challenges exist and long-standing UK skills gap. Currently In fact, innovation, productivity and skills in 2015 we will need to input costs are low and falling. With are closely linked. The EEF/NatWest Brent Crude at close to $80/barrel Innovation Monitor for 2014/15 which maintain the momentum manufacturers are enjoying what amounts tracks manufacturersâ&#x20AC;&#x2122; intentions on of last year and focus on to an unexpected tax cut, supporting investment and innovation suggests our advantages in a world profits and keeping prices low. Industrial that UK companies continue to commodities such as steel and copper move to higher-value, R&D intensive where some important are also low. But commodity markets are manufacturing. Over 95% of companies fickle, and it is quite possible that costs surveyed engaged in some kind of markets are slowing says will be rising again before 2015 is out. innovation over the last three years, Richard Hill, National Head But the biggest hill that UK and the majority of companies intend to increase their innovation spending over of Auto and Manufacturing manufacturing will have to climb in 2015 is in Europe. The EU is our the next three years. at Royal Bank of Scotland. biggest regional export destination, Manufacturers need to invest in

he UK manufacturing sector goes into 2015 looking stronger than at any time in the last two decades. Output, orders and investment have all outperformed expectations over the last year. Current investment levels and investment intentions remain positive and manufacturers report unusually high export expectations - despite disappointing export revenues. So whatâ&#x20AC;&#x2122;s not to like?

and it is already clear that EU growth is going to be considerably weaker than expected only a few months ago. The European Commission recently slashed its growth forecasts for the eurozone economies, and it looks as if the biggest economies will struggle to achieve one per cent growth in 2015. Skills have also long been a problem for UK manufacturers - and they are still a problem. According to the Royal Academy of Engineering, the UK is producing half the number of graduate

60 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

skills as well as in technology, and we should not forget that despite strong current performance the UK remains under-invested in manufacturing; investment is rising but too slowly. The Monitor has recorded five consecutive quarters of investment expansion but that is against a background of higher European competitor investment-toGDP ratios. The Monitor also shows that major capex decisions are still being determined by access to finance rather than business need.

Positioning for Growth Series

The UK Is Europe’s growth zone

Meanwhile the good news is that the UK remains the only big EU economy with growth close to trend and RBS forecasts that GDP will grow by around 2.3% in 2015. Domestic demand fuelled by job creation, house price rises and borrowing have been the most important drivers of investment and output in UK manufacturing. Demand growth is set to slow, but in the meantime interest rates will remain lower for longer - and we now expect the first rate rise around August this year - which will keep spending and investment fairly healthy. The outlook is for a mild demand slowdown, but certainly not a collapse. In Asia, India is likely to be growing a little faster, and China a little slower, with both economies converging around the 7% growth mark. China will eventually become a competitor rather than just a consumer for high value engineering products, but that is a long-term prospect. In 2015, the big Asian economies will remain important export markets for consumer and industrial goods.

Exporters must look to the US

But what the UK’s manufacturers really need are growing developed markets, and in 2015 that will mean the US. The US is still the world’s biggest economy (as well as being the UK’s biggest single export destination), and it is set to be the strongest economy in the OECD. The US dollar will be stronger too, thanks in part to the end of the

Federal Reserve’s quantitative easing programme, and that is good for UK exporters (RBS expects the sterling/euro rate to hold stable). All in all, in 2015 the US will be the trade partner of choice.

Aerospace

The UK still has the world’s second largest aerospace industry (after the US), and aerospace remains the secondlargest UK manufacturing employer (after food). But this vital sector faces tough challenges from lower-cost competitors in the US and EU against a background of falling defence spending in industrialised economies. Demand for civil aviation products is strong - ADS, the UK aerospace trade body, reports that while defence spending on aerospace products is falling, the global order backlog for civil aircraft is at a record high, and that the output of the UK aerospace sector is growing ten times faster than the overall UK economy. But the UK sector also faces the challenge of rebuilding its margins. High costs of skilled labour make it harder for the UK’s estimated 3,000 aerospace supplier companies to match the returns of foreign competitors. The sector will be helped by pro-active government support. In 2015 the UK government will continue to attempt to kickstart new aerospace technologies through the Aerospace Technology Institute (a virtual forum for policy and research) and the Aerospace Growth Partnership, the UK’s joint industrygovernment initiative designed to increase investment in advanced manufacturing and to develop aerospace industry skills.

Automotive

The UK automotive sector goes into 2015 with confidence high on the back of performance stronger than any time since the early 1970s. UK producers have increased output by 50% over the last four years, and the SMMT forecasts that by 2017 the UK will be producing 2 million cars a year (surpassing the previous peak of 1.92 million in 1972). The export value of UK passenger cars has doubled in ten years, to £25bn a year, but at home the automotive sector still faces the challenge of rebuilding the UK supply chain, which many in the industry concede has been depleted by the years of outsourcing. For small and medium-sized UK suppliers the biggest barriers to increasing their participation

ROYAL BANK OF SCOTLAND

in the domestic supply chain are access to finance and expertise. RBS has identified tooling finance as a priority for UK suppliers who in the past have found that lenders have been unable to fit the complex ownership and revenue structures of automotive tooling into their credit models; RBS has recently created a new financing proposition to help suppliers find upfront financing for long-term tooling investments.

Food

According to the Office for National Statistics (ONS), the UK food products manufacturing sector is now recording the highest growth in Europe at around 2.5%. Although engineering and automotive companies often dominate the headlines when it comes to UK manufacturing, the food and drink sector is currently one of the big success stories in manufacturing. It is still the UK’s largest manufacturing employer, and invests £1bn a year in innovation. Just like other manufacturing sectors, food and drink faces challenges in technology, supply chain improvement and financing. For example, the FDF says that the industry’s challenges for 2015 include investing in a supply chain where a very large proportion of manufacturers are either small or even micro, deploying technology better, and finding financing models that are better matched to business needs. After a very strong year, 2015 will be a year of consolidation, a year UK’s manufacturers focus on their advantages. Output and confidence are high, and while Europe is stuck in a low-growth cycle other export markets are performing well. There are plenty of uncertainties on the horizon - not least with a UK general election looming - but right now the UK sector has confidence and momentum on its side. After years in the doldrums, it knows it can perform.

Expertise

RBS maintains a national specialist automotive and manufacturing team, headquartered in Birmingham - the traditional heart of the industry - with a brief to support automotive and manufacturing customers by tackling obstacles to growth head-on. It is a serious investment in banking expertise for the industry, one that is committed to providing customers with a partner that understands their operating environment, and that can help maximise business potential. RBS works with manufacturers in all sectors and is committed to helping UK businesses position for longterm growth. further information Richard Hill National Head, Automotive and Manufacturing, Commercial and Private Banking, RBS T: 07789 616201 E: richard.hill@rbs.co.uk

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 61

Wind Power Dominic Brown, Head of GROW:OffshoreWind, talks opportunities and the need for small manufacturers to act now to take advantage of an £80bn future market

62 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

f you read the business headlines you would think that the recent economic recovery has been single-handedly driven by the automotive industry. Thousands of column inches have been dedicated to Jaguar Land Rover’s growth and significant investment from global manufacturers, such as BMW, Nissan and Toyota. With the media seemingly obsessed with all things ‘motors’, the offshore wind sector has continued to grow quietly in the background. Yet the market opportunity is huge for small manufacturers, with 37 projects - worth between £80bn and £100bn - set to be rolled out shortly. The potential has been on the boil for a while and there is no doubting that the recent £310m investment by Siemens and the UK’s associated British Ports in East Yorkshire was a welcome confidence boost and should hopefully kick-start future developments. And the good news for small and medium sized manufacturers is that

this isn’t just about wind turbines, there’s a whole host of content that is covered by what we know as offshore wind, from supplying toughened glass for maintenance boats to specialist electronics for power management devices. The challenge is convincing this part of the manufacturing base that these opportunities are obtainable and that’s where the GROW:OffshoreWind service comes into its own. Funded by the Regional Growth Fund (RFG) and delivered by Grant Thornton in partnership with RenewableUK and MAS, the programme is committed to matching companies with tier 1s and the major contractors and ensuring they are equipped to meet industry requirements for quality and volumes. Dominic Brown, head of GROW, picked up the story: “We’ve already assisted 500 firms and have got about £5.5m of grant funding pending. “The support has been based on providing oneto-one mentoring and coaching, not to mention giving SMEs access to grants that can be used to develop new technologies, install new pieces of kit or maximise R&D.” He continued: “A lot of the time firms just need someone to talk to them so they understand how their traditional expertise can be used to break into the sector. Like most industries, it is all about the best possible quality and security of supply. “One of the biggest lessons we’re delivering to management teams

Grant Thornton

is that they need to go into it with their eyes open as not many of them fully understand the level of opportunity out there. “Just take the last few grants we’ve given out. One has been to a fabricator in the North East to move to larger premises to build the parts, the other one is to part fund a new maintenance boat for a firm in Kent.” One of the biggest issues Brown and his team face is making sure that suppliers know about the opportunities and ensuring relevant connections are made. This is another area GROW is making progress in. A number of tier 1 suppliers have provided a detailed list of structural elements and commodities they require and it is the service’s job to match them with companies who can meet their requirements. “Fabrication and steel structures are a good example of this in action. We have successfully established a detailed list of UK SMEs who excel in this work, many of whom are already building for the oil and gas/marine sectors,” continued Brown. “These are now being given to the major developers and tier 1s so they can make informed decisions. However, the smaller manufacturers also need to understand there is work to do on their part and should be prepared to research the market and see where their processes and products could be utilised. “There are thousands of parts that can be used in the maintenance of a turbine, but all we think about are the blades, the motor and the metal structure. Admittedly, some of these components are very technical and only available from the OEM, but there is a long list of parts that local suppliers can fulfill.” Again GROW’s advisors are helping in this field by detailing the specification and performance criteria of each part and then inviting suppliers on its database to tender for it. There’s even support when it comes to bidding for the work. So whilst the marketing rhetoric may be strong, there is little doubt that there is substance behind the words. The likes of DONG Energy, Statoil, Vattenfall, Navitas and E.On are all committed to UK content so it’s now up to the smaller manufacturers to act and take their share of the opportunity.

Manufacturing Leadership

Production guaranteed after reshoring A £1m investment into a new glass toughening plant is set to help a Norwich manufacturer target £3m in sales for the first time in its 44-year history. Seaglaze, which produces specialist windows, doors and hatches for the marine industry, took the bold decision to reshore production after experiencing delays and shortages caused by international suppliers. Backed by strategic and financial support from GROW:OffshoreWind and the Manufacturing Advisory Service (MAS), the company has just started initial production, creating six new jobs immediately with more to follow.

“We always wanted to have our own glass toughening plant, but it was always more of a longer-term vision,” explained Alastair Clayton, managing director. “When we found ourselves struggling to keep up with demand we turned to GROW advisor Mark Godfrey for support and he helped us secure a 20% capital grant towards the cost of the toughening plant and advanced ceramic printer.” Seaglaze is now adding to the reshoring trend, bringing back over £600,000 of spend back into the UK.

The new facility is also home to one of the UK’s most advanced ceramic printers, giving the firm the ability to digitally print into glass and opening up untapped markets in the process.

One of the biggest issues Brown and his team face is making sure that suppliers know about the opportunities and ensuring relevant connections are made

www.growoffshorewind.com T: 0207 728 2738 Emai: growoffshorewind@mymas.org Twitter: @grow_osw

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 63

India

India express I

With recent growth levels reaching almost 9% and the economy expected to increase by a further 5.6% this year, India is becoming an increasingly attractive place for UK manufacturers to export to. finds out why.

ndia is set to continue its expansion as a result of several longterm growth drivers. Firstly, the ‘demographic dividend’ means that half of the country’s 1.2bn population are under 25, providing the potential for India to have the biggest labour force in the world by 2020. Not only this, but India’s 250m-person middle class is growing and represents one of the largest consumer markets in the world that want to buy British goods. Additionally, the market has a low penetration of goods and services, which creates massive potential from an exporting perspective. Not only this, but India has a prosperous business sector, thriving universities and thriving financial organisations.

The UK aims to double its trade with India to £23bn and its well on its way to achieving this with total exports of goods and services having increased by 14% from January to September 2013

Regardless of the challenges, huge investment potential exists in the region, particularly in manufacturing and the EU is currently negotiating a free trade agreement with India, set to make export and import more seamless. Manufacturers currently feature in the top 10 UK goods exported to India, this includes non-metallic mineral manufacturers; power generating machinery and equipment; general industrial equipment and machinery; electrical equipment and appliances; professional, scientific and controlling instruments and apparatus; as well as specialised transport equipment and machinery. According to the government the UK aims to double its trade with India to £23bn and its well on its way to achieving this with total exports of goods and services having increased by 14% from January to September 2013. To keep the momentum going, in July Chancellor George Osborne announced that the UK’s export finance body would provide a £1bn line of credit for investment in Indian infrastructure. This will allow Indian investors to borrow from the UK when British firms have a major role in Indian projects. Additionally, UK Export Finance will be able to guarantee commercial loans in

64 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

EXPORTS

Exporting to India is not without its challenges: The Indian market is competitive with preference given to the lowest bidder meeting the specifications, irrespective of quality. India has seven major religions and countless minor ones, as well as six main ethnic groups meaning the numerous holidays can present problems with irregular business hours. Regulatory constraints in some sectors. Protection of Intellectual Property (IP). Bureaucratic interruptions. Land acquisition can be troublesome. Access to the right skills in the local workforce. The rural nature of the country results in poor infrastructure, creating issues with distribution and logistics. Weather extremes can affect business.

rupees. This funding does not include the Budget’s £3bn worth of export finance. Mr Osborne told the BBC: “Frankly, Britain does not export enough. It’s one of the disappointing features of the British economy. I want us to do much more business with this extraordinary economy here in India, exporting more, and trading more.”

Make it Britain manufacturing a renaissance N A T I O N A L

C O N F E R E N C E

2 0 1 5

26 February 2015, QEII Conference Centre, London

JOIN THE DEBATE ON THE GREAT BRITISH MANUFACTURING REVIVAL As the General Election approaches our conference will bring together the who’s who of manufacturing, politics and the media. This is your chance to: – challenge the policy makers – influence the business agenda

DICK ELSY, High Value Manufacturing Catapult

RT HON MATTHEW HANCOCK, MP

STEPH MCGOVERN Broadcaster

NICOLA SLATER Williams F1

RICHARD KIRK PolyPhotonix

SOPHIE THOMAS RSA

TONY WALKER Toyota UK

MARTIN WOLF CBE Financial Times

– hear from inspirational speeches and network with hundreds of business leaders. As always, there will be keynote speeches from policy ministers - we will be announcing these closer to the event.

Hurry! Last year’s conference sold out early, book your tickets at www.manufacturingconference.co.uk Headline sponsor:

In association with:

Manufacturing success attended the second annual Advanced Manufacturing & Engineering Leadership Academy to hear the unique stories of women making headway in the industry, and what remains to be done to ignite the manufacturing spark in young people.

n November 13, engineers and manufacturers from all over the UK united at The Royal Academy of Engineering in London for the second annual Advanced Manufacturing & Engineering Leadership Academy organised by Everywoman. Aimed at amplifying women’s voices and championing their advancement in the world of engineering and manufacturing, the event provided a unique opportunity for attendees to hear presentations from key role

models in industry, network with strategic individuals and access advice on career progression. The day’s highlights included a keynote from head of engineering at Gatwick airport, Dawn Elson, a panel discussion on ‘engineering success’ with input from Katy Lin from Shell, Commander Sharon Malkin of the Royal Navy, Dr Helen Meese from the Institute of Mechanical Engineers and Dyson’s Dr Caroline Simcock. In addition, attendees were invited to participate in masterclasses from Kate Turner and

Private schools are getting more students taking subjects like physics, a prerequisite to embarking on an engineering degree at university

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Everywoman

Sara Parsons, as well as a motivational session from Sally Kettle. The event was supported by GE, the Royal Academy of Engineering, Airbus, The Royal Navy and Semta. Co-founder Maxine Benson MBE, who runs Everywoman with Karen Gill MBE, told : “The AME Academy provides attendees with three key opportunities: access to role models who have navigated successful careers in the industry, great cross-company networking and a chance to develop skills that will help prepare them to more confidently step into their next role. “We hope that women will leave with a focus on wanting to take greater responsibility for their own career progression and armed with some new skills/advice/actions that they can put in place to help them realise those ambitions. We also want them to leave knowing they too are role models – someone who can inspire more women into STEM careers.”

Missing the early boat

Although events like the Everywoman Manufacturing & Engineering Leadership Academy provide exposure to valuable role models for women in STEM, inevitably, we often find ourselves preaching to the converted. Numerous conversations both at the conference and with the wider industrial community have exposed a trend - while both women and men need support at each stage in their careers, many feel that we are only reaching youngsters once it’s too late. Katy Lin, vehicle technology engineer for Shell, emphasised the point, saying: “We need to tap in to younger people at every layer in their education.” Andrew Churchill, managing director at JJ Churchill, agrees that the earlier we connect with aptitude in STEM subjects the better, he told : “You’ve got to light that spark and you’ve got to light it at that age.” And that spark is flickering within many young people, but they are left without access to the resources to nurture it. In July the Royal Academy of Engineers published Thinking like an engineer – implications for the education system, which drew on a variety of engineering educations and practising professionals in exploring the skills gap.

Author of the research, Professor Bill Lucas says that “the education system does little to teach in ways that will cultivate the engineers we will need.” Adding that, “we often leave it too late, and too often, teach it too dully. This has to change.” There exists what Verity O’Keefe, employment and skills policy advisor at EEF, describes as ‘post code lottery’ with state school students’ access to technology and the subjects that are a requirement to study engineering at university. O’Keefe explains: “Certainly, between private and state schools and particularly with girls, private schools are getting more students taking subjects like physics, a prerequisite to embarking on an engineering degree at university.” O’Keefe also alluded to some schools being geared towards the English baccalaureate, a qualification that fails to recognise creative subjects and instead assessed STEM subjects purely on academia, a route that is likely to deter students that possess a create flair but need support in other areas. There is an obvious correlation between innovation, which is a cornerstone of manufacturing, and creativity, perhaps the best known inventor of our time, James Dyson was a graduate of the Royal College of Art. Additionally, caught up with 19-year-old technology founder, inventor and engineer, George Edwards of GasSense. George was concerned about the lack of cohesion between government bodies and the department

WORKFORCE & SKILLS

Many schools simply aren’t nurturing students’ interests in these subjects

of education, he told : “The department for education is currently reviewing the only engineering syllabus.” He voiced concerns over the future of engineering with the school system, an outcome which will have massive implications for plugging the skills gap in manufacturing. Design and technology is an integral part of a well-rounded education, not just for those that are set on a career in manufacturing and engineering, but for students to understand the importance of creating products that solve real-life problems. Details on a review of engineering within the school syllabus are yet to be made public, but it is clear that there is little alignment between government bodies like BIS and the Department of Education. An effective relationship between these two entities is key to providing role models, raising the profile of careers in manufacturing and supporting students. A cohesive strategy, with input from both bodies will nurture individuals that demonstrate an aptitude for subjects that are a prerequisite for engineering and manufacturing and will retain them in these areas before university.

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 67

Snapshots

Workforce and skills

Celebrating the industry’s top apprenticeship employers The nation’s top 100 apprenticeship employers have been revealed, with eight companies representing the manufacturing sector.

he annual Top 100 Apprenticeship Employers list is compiled by the National Apprenticeship Service in partnership with City & Guilds and recognises excellence in businesses that employ apprentices. The manufacturing companies featured include: The Manufacturing Technology Centre (MTC); Alcoa Power & Propulsion; Griffon Hoverwork; GKN Aerospace – Filton; JEB Engineering Design; KMF; MBDA UK; and Partwell Cutting Technology. All of which have been selected by a panel of judges from the employment and skills arena for their exceptional contribution to apprenticeships. Chief executive of MTC, Dr Clive Hickman said: “To be included in this prestigious list is a real achievement and gives formal recognition for our efforts in helping youngsters succeed in their chosen career. Our aim is to make an MTC apprenticeship the gold standard for engineering and manufacturing in the UK. “MTC apprentices have the opportunity to work in a unique research and development environment where each day is different and there are real opportunities to work on exciting projects. MTC apprentices are given responsibility in a real business environment from their first day.”

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Dep Cleguty Prime Appreg speak Minister N ntice ing at th ick ship Awarde Natio nal s

Having taken on 40 apprentices, with an aim to grow this number year-on-year, the MTC is planning to build an £18m advanced manufacturing training centre at its Ansty Park headquarters. The new centre will be a flagship facility for an advanced apprenticeship programme and apprentices will learn the latest technology in areas such as intelligent automation, additive layer manufacture, laser machining and welding. Announcing the list at the National Apprenticeship Awards, which took place during The Skills Show in Birmingham, Deputy Prime Minister Nick Clegg said: “The Top 100 Apprenticeship Employers have clearly demonstrated how apprenticeships have a major part to play in building great businesses. “I would encourage more businesses across England to follow these shining examples and find out how apprenticeships can help them build a skilled, motivated and highly qualified workforce. For the Top 100 Apprentice Employers recognised in 2014, their great achievement clearly outlines why apprenticeships deliver the skills that young people and the economy need.”

The National Manufacturing Debate .....now in its 6th year 19 and 20 May 2015 Vincent Building Auditorium, Cranfield University

Theme: UK Reshoring Capability This is the opportunity for manufacturing professionals to discuss and debate current challenges in the industry and to network with colleagues from different sectors. Cranfield will publish a white paper with facts on manufacturing reshoring on the day.

19 May

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

20 May National Manufacturing Debate 0915 – 1300 Keynote speakers from the manufacturing sector To be announced soon

1300 – 1400

Buffet Lunch

1400 – 1630

The Debate How do we develop the capability for effective reshoring to the UK?

The debate will consist of a panel of influential business professionals with knowledge of the reshoring capability for the UK. Media Partner:

Snapshots

Workforce and skills

Engineering Free skills service apprentices launched for prove their manufacturers weight in gold Apprentices from engineering companies across England’s North West took home two gold and three silver medals at the national finals of the World Skills UK competition in November.

he winning group includes Fort Vale’s (Burnley) Jonathan Oddy and Benn Goodwill; Ryan Knight from BCH (Whitworth); Liam Woinson from Paradigm Precision (Burnley) and Ryan Worthington from Rolls-Royce (Barnoldswick). Fort Vale’s training manager, Alan Emerton said: “As an organisation that has a genuine passion for training and developing young people, we are extremely proud to have two of our apprentices achieve the accolade of each winning silver medals at this year’s UK Skills competitions.” The young engineers are completing their apprenticeships with Blackburn-based training provider Training 2000 and competed in sectors ranging from computer aided design to CNC milling. Having showcased their technical skills in the regional heats, the apprentices were shortlisted to take part in the UK finals which took place on November 13-15 at the NEC in Birmingham. They fought off 600 other apprentices under the watchful gaze of almost 75,000 visitors. CEO of Training 2000, Steve Gray said: “We are so proud of all of our learners and their employers. It is a real testament to the quality of the training they receive both at Training 2000 and on the job.” ddy Competitors from this year’s athan O le’s Jon Fort Va World Skills UK finals may be invited to join team UK for the upcoming World Skills 2017 competition in Abu Dhabi.

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Greater Manchester Skills Gateway has been launched for manufacturers in a bid to boost the economy and improve companies’ use of training to achieve growth, boost productivity and improve staff retention.

he region is the first to use European funding, through the European Social Funding Skills Support for the Workforce programme, to develop a new, free skills service for manufacturing businesses. The Skills Gateway promises to build on the sector’s success, of both new enterprises and established companies, by giving businesses complimentary access to a pool of over 250 training providers. Angie Took, operations manager of Skills Gateway, said: “Businesses’ experience of training is mixed, with a dizzying array of providers, funding opportunities and qualifications. “Our service will put that right for manufacturers. It will help organisations and employees to achieve their full potential, by simplifying the process of sourcing appropriate and beneficial training.” The initiative – backed by the Greater Manchester Chamber of Commerce and Greater Manchester Learning Provider Network (GMLPN) – identifies the providers with the most appropriate experience, services and success rates before linking them with each business. The independent service promises to improve the reputation of training as a tool for business growth and efficiency, by placing emphasis on training and providers that deliver a tangible return on investment. Businesses using the service will be provided with a shortlist of training providers that best match a wide range of criteria suiting their sector, needs and objectives, as well as advice on how to use training to develop their business and also access to any potential funding for training. Louise Timperley, head of skills and employment at Greater Manchester Chamber of Commerce, said: “Investment in skills drives the future growth and productivity of our local economy. Skills Gateway will encourage more businesses to access effective training and use skills development as a vital tool for expansion. As a result, it will benefit the region’s economy, helping to increase competitiveness and productivity across all sectors.”

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UNLOCKING FINANCE 10 June 2015 | London @TheManufacturer @TM_EventsTeam #TMFinance Book now: 020 7401 6033 (Opt 3) events@hennikgroup.com

Financial optimism has returned to companies and plants of all sizes. Yet for SMEs nationwide, a common concern remains that their business ambitions cannot be satisfied via traditional financing methods, forcing them to neglect, rather than reach out for growth. Furthermore, a busy market of grants, initiatives, and alternative finance has discouraged rather than enabled companies to grow. This conference will clarify the current financial landscape for manufacturers, by identifying key investment issues and pitfalls as well as present examples of successful investment acquisition. With a â&#x20AC;&#x153;clinicâ&#x20AC;? where representatives from traditional finance, alternative finance, government bodies and NGOs will deliver collaborative, tailored solutions to your investment problems.

Visit: themanufacturer.com/finance2015 Researched and delivered by

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Pinsent Masons

Finance & Professional Services

Right shoring â&#x20AC;&#x201C; identifying the legal issues Ruth Andrew, Senior Associate at Pinsent Masons, debates the issues surrounding the emerging trend of right shoring.

uch has been written about the new buzzword in contracting: right shoring. As a concept, it is not complex â&#x20AC;&#x201C; itâ&#x20AC;&#x2122;s about looking for the right place for parts of your manufacturing operations, whether that is on or off shore. The concept that right shoring recognises is that pure cost is not the only factor to be considered when making a decision to re-locate all or part of your manufacturing operations. The decision will need to take into account multiple financial, commercial and reputational factors to achieve the right end result. In our increasingly connected world, businesses have more data and information at their fingertips relating to the performance of their supply chain. This can be used to make an informed assessment as to the best place for elements of the manufacturing process. In addition, technology is driving consumer demand such that there is an expectation that products will arrive quickly - impacting on the decision as to where products are manufactured. The right shoring decision will be also driven by geo-political issues and the instability of certain countries; the recession, which has created wage parity in developed and emerging economies, and volatile fuel costs which encourage manufacturing near the customer base. From a wider, corporate responsibility angle, businesses need to demonstrate their sustainability credentials and ensure ethical working

practices. This may mean a distant manufacturing location is not the right way forward (even if it is the cheapest option). Moving manufacturing location raises a number of legal challenges for businesses, all of which need to be factored into, and considered, as part of the initial decision to re-locate so the end result is one which is right for the business. These legal challenges include: Current contracts: are there any current supply contracts which cannot be switched off to allow the relocation? Or can they be terminated but at a cost? Employment issues: would a move cause a redundancy exercise and, if yes, what are the cost (and reputational) implications? In terms of the new location, has it a ready supply of employees with the correct skill sets? Are there employment laws in that country which may prevent the establishment of a flexible workforce going forward? Taxation: what is the tax treatment in the new location? Can you obtain any subsidies to help finance set up/ongoing costs? Are there import/export issues and costs to consider which affect the ultimate landed cost of the manufactured items? If you are moving from one location to another, are there any subsidies which will need to be repaid when you leave the original location? Finance: how easily can you obtain finance for any set up costs? Protecting IP: if the product to be manufactured is complex and requires the disclosure of valuable intellectual property rights and know how, does the proposed

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The concept that right shoring recognises is that pure cost is not the only factor to be considered when making a decision to re-locate all or part of your manufacturing operations country of manufacture have a robust legal system to help you protect those rights? Tooling: do you need to relocate tooling? Are you able to transfer it from its current country to the new location without significant cost and disruption? Does the tooling need to meet different legal requirements in the new place of manufacture which would mean it becomes unusable/requires significant and costly re-work to make it compliant? Local regulatory requirements: you will need a clear understanding of any local regulatory requirements which will apply in your chosen country. For example, are there restrictions on foreign ownership? Are there local content requirement which impact on your supply chain? What health and safety rules will you have to comply with? What is the impact of complying with the local regulatory requirements on your costings and overall business plan? Cultural challenges: is there a cultural fit with the new country? Are there any increased risks of bribery and corruption? Does working in that country give rise to any consumer concerns that the products may not have been ethically produced? Given the purpose of right shoring is to make a decision which fits emerging business needs, any resulting contracts implementing the right shoring decision need to be flexible in order to future proof the business. The right decision now may not be the right one in two or three years time. All contracts underpinning the right shoring decision need to secure (as far as possible) the benefits for the business in moving location; protect the business from any identified risks and allow for change in the future at the minimum of cost if business conditions change. Right shoring can bring significant benefits for a business but to make that decision right, it is important to consider all of the issues and pitfalls.

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The Manufacturing Talent Challenge 24 February 2015 | The Waldorf Hilton Hotel, London Is the skills shortage unravelling your business plans? @TheManufacturer @TM_EventsTeam #TMAutomate

Book now: 020 7401 6033 (Opt 3) events@hennikgroup.com

Having talented staff in your business is what separates good companies from great ones. Yet with only a small pool of talent to harness, a persistent skills gap remains, widening at an alarming rate as older generations begin to retire. Companies must turn their attention to nurturing the younger generation, as well as continuing to inspire their current talent, if they are to address a crisis which is becoming more immediate by the day. This conference, led by industry experts, aims to provide solutions for your skills gap by helping you identify, acquire, and retain talent; ensuring that a steady flow of 1st class candidates enter your company, and stay there.

Visit: themanufacturer.com/talentchallenge Researched and delivered by

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Lloyds Bank Commercial Banking

Finance & Professional Services

Understanding the sector

David Atkinson, Head of UK Manufacturing at Lloyds Bank Commercial Banking, shares the commitment to ensuring British manufacturing stays healthy and competitive in the global market.

hether you make components for the automotive supply chains, valves for oil refineries or are a manufacturer in the food and drink sector, our nation’s makers operate within unique markets and trading environments.

Britain’s position at the forefront of high-value engineering demands heavy and consistent funding for research and development (R&D) to keep us at the top of our game

Manufacturing is a capital-intensive industry that provides its own particular working capital demands, while Britain’s position at the forefront of high-value engineering demands heavy and consistent funding for research and development (R&D) to keep us at the top of our game. Manufacturers are leading the charge for UK exports as firm’s look to emerging markets to supplement domestic growth and hedge against a sluggish Eurozone economy, which will require specialist products to protect and support businesses when exporting to overseas markets. Banks provide vital funds and guidance for these firms. Our team at Lloyds Bank is committed to ensuring that our relationship managers and directors know manufacturing, and its dynamic challenges, inside-out. That’s why we set up a comprehensive manufacturing awareness programme

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with the renowned Warwick Manufacturing Group back in 2011. The initiative provides real insight into how these companies are impacted by the decisions that banks make and how we can best support them. The training covers key areas of understanding from export finance, complex manufacturing supply chains, techniques on good factory floor practices such as 5S and specific government initiatives aimed at supporting the sector. The results of the project have been outstanding. We’ve trained over 200 Managers, who have supported more than 2,500 businesses. This is part of Lloyds Banking Group’s commitment to support manufacturers by providing £4bn of extra sector funding in the four years to 2017. With the right experience in industry and sector-specific knowledge in place, our team is well-placed to provide funding and banking products that will meet the specialist needs of a manufacturing business, including export finance, working capital and loans. While the economy may be recovering, volatility in recent weeks demonstrates the importance of remaining fleet of foot, and having access to specialist support in the market. Lloyds Bank remains fully committed to ensuring that manufacturers are in the best possible position to meet challenges ahead, but also capitalise on opportunities that markets at home and abroad present.

Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it.

All lending is subject to a satisfactory credit assessment. Lloyds Bank plc. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278 We subscribe to The Lending Code; copies of the Code can be obtained from http:// www.lendingstandardsboard.org.uk/ The Lloyds Banking Group includes companies using brands including Lloyds Bank, Halifax and Bank of Scotland and their associated companies. More information on the Lloyds Banking Group can be found at lloydsbankinggroup.com.

Enthuse young people to take up vital careers in engineering

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 industryâ&#x20AC;&#x2122;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

Big things happen with The Smallpeice Trust

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 75

ABB

Manufacturing Technologies

A general reluctance to invest in new technologies means that many companies expose themselves to an increased risk of unplanned downtime caused by failing equipment

Fast food Changing consumer demands is one of the challenges facing food and beverage producers. Alan Spreckley, Global Industry Segment Manager (Food & Beverage) for ABB Robotics, advises how these can be resolved.

ny food producer wishing to succeed in today’s competitive market must be responsive to rapid change. A high staff turnover coupled with such issues as product quality, flexibility of production lines and financial strain, all add pressure. It is not surprising then to see an increased interest in automation as robots address these problems. According to a report by BARA in 2012, food and beverage manufacturers accounted for nearly a third of the applications received for the UK government’s Automating Manufacturing programme.

Common issues

Inconsistent product quality is the enemy of food and beverage production. A mistake can affect the stock of ingredients, as well as the product, pushing up costs.

Inconsistent product quality is the enemy of food and beverage production

76 www.themanufacturer.com | December/January 2014-15 | Issue 10 | Volume 17

Inattentiveness, operator boredom, and failure to understand can all increase the risk of errors. Mistakes can cause late delivery and lost orders as customers look to alternative suppliers. In the extreme, they could even lead to an embarrassing product recall. Sudden fluctuations in order sizes can also cause problems where processes are not sufficiently flexible. Drafting temporary labour can present another potential source of errors, particularly where the workers may be unfamiliar with processes. Another major issue is reliability. A general reluctance to invest in new technologies means that many companies expose themselves to an increased risk of unplanned downtime caused by failing equipment. No manufacturer wants their plant to be found wanting during an inspection by a major customer. Furthermore, uncertainties in cash flow can make it difficult to hire sufficient staff and can be particularly problematic when production needs to be boosted. Curing the headaches - the role of robotic automation.

Consistent product quality

Ongoing developments in vision inspection technology are enabling

robots to quickly spot defective products. The risk of contamination in processes where raw ingredients are handled is also significantly reduced. The hygienic design of ABB’s FlexPicker IRB 360, enables it to be washed down between processes, helping to ensure that contamination is eliminated.

Increased reliability and flexibility

Reliability is a key advantage of robotic technology. Once programmed, robots can be left to handle a process efficiently with no risk of issues. Able to switch between multiple processes with minimal downtime, they provide the flexibility needed to complete orders quickly.

A strong investment

Developments in offline programming make it possible to configure and test a robot in a virtual process before committing it to the factory floor, eliminating the time and cost of commissioning a physical installation. Robots can also help to reduce costs associated with drafting in extra staff, wastage and reprocessing of products.

Summary

The take-up of robotic technology is continuing to rise within the food and beverage industry. Continual advances and a fall in cost lead manufacturers to turn to automation and help them achieve new breakthroughs in competitiveness and productivity. As a manufacturer and supplier of robotics automation equipment, ABB is well placed to advise food and beverage manufacturing companies on the best way to optimise their processes. FURTHER INFO: For more information, email robotics@gb.abb.com or call 01908 350300 quoting ref. ‘food and beverage’.

The Manufacturer magazine in conjunction with the leading automation equipment suppliers has established The Automation Advisory Board to educate owner-managers and factory directors about what automation equipment can do and the benefits it can bring to UK manufacturers.

For more information contact Henry Anson, Managing Director, The Manufacturer E: h.anson@hennik.com T: +44 (0)20 7401 6033

Automation needs to rise to the board level in companies of all sizes, but especially larger SMEs where the capital equipment could make a profound difference to winning contracts. Companies in non-auto sectors, who are unfamiliar with the range, capability and simplicity of automation kit, need and deserve to know what automation options are available. This year it is a business risk not to be informed about the benefits this technology can bring.

bit.ly/AABautomation The Automation Advisory Board is proudly supported by:

Five top techs tipped to go big in 2015

Looking to shake up the way your business does things? Take a look at these technologies, says Contributing IT Editor Malcolm Wheatley

hat will the world of IT hold for us in 2015? One thing’s for sure - the relentless pace of IT innovation shows no signs of slowing down, with a spate of new announcements and product launches during the past year pointing to interesting times ahead. So which new technologies are poised to make the biggest difference

collaboration through to through to leveraging the Cloud, there’s something here for every manufacturer.

The Internet of Things

2014 was the year in which we really started to hear about the Internet of Things. It’s the same Internet that we already have, of course, but extended out to literally billions of devices, or ‘things’. Think about sitting at your computer at work, and turning up the thermostat on your home Even the largest manufacturers central heating. have tended to restrict the use of business Why would manufacturers want to intelligence to large, focused projects do that? Because, as Richard Wilding, professor Matthew Scullion, Matillion of supply chain strategy at Cranfield University School of Management, points out, it enables new business to manufacturers? It’s difficult to models such as servitisation, and quibble with this clutch of five hot brings a new dimension to vendor technologies, each of which is tipped to managed inventories. go mainstream in the near future. “Think of it as the equivalent of From whole new business models ‘the final mile’,” he urges. “It’s a through to ‘stickier’ customers, way of connecting your ERP system and from social and supply chain

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Five top techs

Cloud ERP frees up manufacturers to focus on manufacturing, rather than on maintaining IT infrastructure and ERP systems Gavin Donaldson, NetSuite

right through to the point of use at a customer’s promises.” Granted, there’s a lot of hype about the Internet of Things, concedes Steve Dunbar, the Internet of Things commercial lead at Microsoft. But even so, he says, the potential is huge. “There’s never been as many devices as there are in the world today, and they’ve never been as cheap, or as connected, or as powerful. And as an industry, we’re still very much getting our heads around what we can connect to what, and the value that stems from such connections.”

Cloud-based business intelligence

A complete business intelligence solution, delivered in just three months? Complete with a data warehouse, selfserve analytics tools, and dashboards? That’s the prospect held out by Cloudbased business intelligence. And it’s a prospect that manufacturers can expect to see much more of in 2015. “In terms of the risks, in-house expertise, and budgetary firepower required for on-premise business intelligence, it’s always been difficult for small and mid-sized manufacturers to justify,” says Matthew Scullion, managing director at Cloud business intelligence vendor Matillion. “Consequently, even the largest manufacturers have tended to restrict the use of business intelligence to large, focused projects.” But put the data warehouse in the Cloud, updated nightly from your ERP system, and also put the analytics and reporting software in the Cloud, and the result is that a lot of the risk, upfront capital expenditure, and required on-site computing horsepower simply vanishes. And if Cloud business intelligence makes business intelligence more do-

IT in Manufacturing

able, it also makes it more affordable. Moving the heavy lifting to the Cloud, points out Scullion, replaces a hefty chunk of upfront cost with a simple monthly subscription - operating expenditure, in short, and not capital expenditure.

to customers and suppliers, in a way that technologies such as EDI have struggled to deliver.”

Customer communities

If the use of social media tools in business doesn’t seem very, well, business-like, then prepare to think again. During 2015, a growing number of companies will discover that social collaboration tools can deliver faster results than today’s traditional ‘command and control’ business communications paradigms. Some traditional ERP vendors already offer social collaboration tools for businesses. Infor, for instance, has its Ming. le social collaboration platform. Another route is to use the social collaboration tools built into Google’s enterpriseclass Apps for Work suite. Either way, you’re creating a real-time, multi-employee, crossfunctional continual ‘conversation’, structured around particular topics. And companies using the technology point not only to faster problem resolution, but also quicker access to revenue and profit-boosting insights. In that respect, say experts, social collaboration tools can be considered as another form of Business Intelligence. “Instead of waiting for information to filter through from the usual communication and reporting channels, you’re seeing it almost in real time,” says Paul Saxton, business intelligence solutions manager at Microsoft gold business partner eBECS.

Had a problem with your phone, internet, or e-mail? If you’ve logged on to telco BT’s website in search of a fix, you may have stumbled across BT forums where the advice comes from other BT consumers, as well as, or instead of, BT’s own employees. Such customer communities are now moving mainstream, into both business-to-business and business-toconsumer business models, says Rick Metcalf, strategic account manager at Salesforce.com. From BT-style self-help forums, through to providing a single portal for product data, FAQs and brochures, emerging CRM technology is now making building such customer communities a very straightforward affair. “It’s about making your business ‘stickier’,” says Metcalf. “You’re providing a service, alongside your product, in the form of a location where customers can self-serve themselves with training and education, product knowledge, access to product experts, and shared experiences with other customers.”

Cloud-based ERP

Cloud-based ERP isn’t new. A number of vendors - including QAD, SAP, Syspro, NetSuite and Oracle - have been offering it for some years. But adoption has been held back by manufacturers’ worries over security concerns, and nervousness about business processes grinding to a halt if the connection to the Cloud was lost. Expect to see such concerns finally vanish in 2015, as Cloud ERP finally goes mainstream, offering manufacturers the ability to rent ERP by the month, along with the rental of the server capacity to run it. “Cloud ERP frees up manufacturers to focus on manufacturing, rather than on maintaining IT infrastructure and ERP systems,” says Gavin Donaldson, vertical lead for manufacturing at NetSuite. “What’s more, Cloud ERP also makes it easy for manufacturers to build supply chain connectivity

Social collaboration tools

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 79

What are the most common ‘points of pain’ you find in manufacturing businesses?

It’s all down to process Are paper processes a thing of the past? Or do manufacturers just need to start thinking smarter about these processes? sat down with HP representatives Marie-Amelie Masnou, Worldwide Manufacturing Industry Lead, and Ian Ames-White, UK & Ireland Advanced Document Solution Country Manager to discuss the future of workplace paper processes. Manufacturing is already going through a period of rapid digitalisation and you believe you have a crucial role to play in this move, particularly in the process of digitising paper processes, how exactly is HP aiming to do this?

Marie-Amelie Masnou: It’s true that manufacturers rely heavily on paper and HP is at the core, we come from the printing industry. When our

manufacturer customers ask us to come in we’re looking at optimising and rationalising their printing and imaging fleet. We’re moving beyond this, meaning we really want to look at business processes and where the paper is in the flow of the information for their operation. We are approaching this with specific advisory services looking at where the pain is in the paper processes and optimising those processes, so we really look at the business processes and we want to improve them. It’s really us considering the environment beyond just printing and imaging and optimising those processes byoffering the right services around it.

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Ian Ames-White: There are certainly areas where we see consistent pain in a lot of businesses and the customer, the manufacturer, has got to identify those areas. An example might be as simple as invoice processing. The invoices might be coming in from multi-channel sources, so you might have a small manufacturer who’s bringing in just a paper invoice, posting it, someone else is emailing it and using an EDI system. All of these multichannel inputs need to be captured and put into the right place. If they get lost then of course you’re going to get penalties for late invoice payments and so on, so it’s these little areas of pain that I think is the mistake that some customers and some companies make and think “right, we’re going to digitise everything” and this broad brush approach isn’t the right one. You need to specifically look at where there are issues and how we can improve them. MAM: I would say that the typical mistake is to be reluctant to move, and to adopt, digitisation. So most of the manufacturers would really not look at, or anticipate, the benefit of a potential digitisation or automation of a business processes. Instead they would really like to keep what’s going on and not measure the benefits. They underestimate the benefit they could have

from adopting new technologies and transforming their business.

Space is crucial on manufacturing shop floors, so what are we looking at in terms of actual kit when implementing these systems?

MAM: We’re looking at integrating multi-function devices - the device can print, it can scan, it can capture. This is not going to take three different devices. It’s going to take the same device that already has those capabilities enabled. So really we’re not multiplying the number of hardware devices that are needed we’re just making sure that our customers, or manufacturers, make the best and full use of the capabilities they have existing in their environment anyway. IAW: We need to seamlessly integrate them with mobile devices as well. They’re becoming much more prevalent in the working space. They might be hand-held, they might be barcode scanners, they might be tablet devices, all of which can input from the screen. Or they might be able to photograph a document or an error on a piece of manufacturing process, take a picture, send it straight through to the design office to actually check if it’s right and what needs to be done about it. All of those can be integrated without increasing the space or requirement in the manufacturing office, and work very effectively.

Are you seeing these processes being adopted more so by companies that are adopting lean strategies in their businesses?

IAW: They are the obvious early adopters when they’re looking at their businesses as a whole. But that doesn’t preclude people who have an HR on-boarding issue, which is just as likely to be in a manufacturer as it is to a bank, to a retailer, or there might be an expenses system which might be digitised, so it doesn’t have to be big systems where you go in and make a difference. You can make a difference in a very small way; gain confidence throughout the business that this process works and is giving benefits, and then move to bigger things.

How do you link your services with existing backend software and resources such as ERP systems?

IT in Manufacturing

We want to help digitise these documents to make the electronic flow a lot more efficient and cost effective but the paper will remain just simply for compliancy or regulation reasons

IAW: What is key for a lot of companies is they’ve already made an investment in some sort of backend system. Whether it be a database or a mass production system or an ERP system. We aren’t in the business of replacing those. What we’re trying to do is capture information as early as possible in the process, digitise it, extract information from it, and then pass that into those systems, whatever they may be. We have interfaces or APIs in our products which will link directly in to an ERP system so the information coming into the customer, in whatever format that might be, in that multi-channel input can be posted reliably into the ERP systems.

Can you see receipt in proof of delivery systems going completely paperless to make supply chain systems more efficient?

MAM: Proof of delivery, like invoice note and processing, are all the classic examples but these are never going to go paperless and there will always be a mix, and that’s why we mention it now. We want to help digitise these documents to make the electronic flow a lot more efficient and cost effective but the paper will remain just simply for compliancy or regulation reasons. There is no way we can remove the paper and have a completely paperless office. It’s going to depend one country to the other, but some countries and regulations require that the physical paper is kept and archived in a physical and accessible storage for so many years. So the answer to paperless? No, it’s not going to be the goal. Eventually, yes, reduce the costs related to printing or dealing with too much paper. But you will need both anyway, and the solutions we want to provide to our customers is to have the best of both worlds.

A lot of other industries, such as the banking and finance sectors, have adopted these processes quite early on with about 50% of processes now paperless. How is manufacturing tracking compared to these other industries?

IAW: We find that, for example, the financial services industry are early adopters, and especially at the moment, they’ve got lots of governance as part of their process so they’re having to audit their processes, digitise their processes. They are adopting early. Manufacturers tend to be behind that process. They tend to be more cautious and they have processes which have been in place in the workplace and aren’t governed in the same way as perhaps other industries are. But health and safety is becoming bigger, archiving is becoming more important, so we are seeing a lot of growth in that area. What we’re finding is the earlier they digitise and capture information the better for the whole process. The way to start is to get a consultative approach, to start talking with the customer, to start highlighting those pain points so that we can actually follow the process as documents flow through the whole business and pick off some of these simple areas and start that digitisation process as early as possible.

FURTHER INFO: To watch the full interview, please visit www.themanufacturer.com/HP

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 81

Out with the old As Webtec grows, it turns to Epicor for an ERP system that would perform as its old software did, but would also be independent, fully integrated and with multi-country support.

ebtec is a UK based manufacturing company, specialising in hydraulic measurement and control products for use on mobile and industrial machinery. Over a six-year period Webtec has nearly doubled in size, but through efficiencies gained using Epicor ERP, its headcount has remained almost unchanged.

Throughout its history Webtec has always embraced new technology, whether on the shop floor or in the back office

Scale up, or move out

Throughout its history Webtec has always embraced new technology, whether on the shop floor or in the back office. In the 1980s it was one of the first UK manufacturers to implement what would become known as an enterprise resource planning (ERP) solution. Despite being classed as an SME, Webtec grew into a complex business, selling to 50 countries through a number of channels and with systems trying to support all business functions, plus incorporate the design and manufacture of mechanical, electronic and software components. Throughout this period of growth, the internal IT team at Webtec developed new features for its ERP system and, where features could not be implemented, purchased additional software or used spreadsheets to try and meet the needs of the business.

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By 2006, it was becoming apparent that the existing system was reaching the end of its useful life. Its maintenance and day-to-day care dominated the time of the IT team. It was also apparent to the management team that the situation was stopping the business scaling and they were simply not able to fully explore the range of opportunities that lay before them. “We had a number of disparate and unconnected systems that made it nearly impossible for departments to share information,” said Stephen Cuthbert, operations director for Webtec. “It had become clear that we needed a new system that could properly support the complexities of our business and improve our operational efficiency end-to-end, from quote-to-cash.”

Do-it-yourself ERP

Webtec needed an ERP system that would perform all the functions of its disparate software products, but with multi-country, currency, site and language support, fully integrated financials and advanced engineering. Other key criteria were the need for Webtec staff to be able to configure the

Epicor

product without outside support and rich business intelligence that would allow teams to quickly build dashboards and reports. Webtec also wanted to ensure that a wide range of modules existed to support future company growth and change. “There were plenty of SME products for us to review, but the truth is that they couldn’t cope with the complexities of our business,” explains Stephen. “They lacked the flexibility to configure the product easily, and in many cases lacked features such as multi-currency financials or advanced planning and scheduling. They were single currency finance packages, with crude manufacturing features bolted on.” Once selected, a project team with representatives from each department was assembled to implement Epicor ERP. No external implementation partner was used, but the internal team was supported directly by Epicor as required - covering data transference and initial project team training.

Data was split into two groups, with historical information remaining in the original system, and live data (including customers, suppliers, parts, manufacturing routes and BOMs) moving into Epicor ERP. It took four months for Webtec to implement Epicor ERP, and six months to complete the process once live. “Epicor ticked all the boxes for us, and we could envisage it growing, with Webtec,” adds Stephen. “During the implementation, rather than move everything, our philosophy was that the old system would over time need to be used less and less as a new history built up in Epicor. Extracting data was quite easy, but formatting and validating it to go into Epicor was not, though the tools for this have improved dramatically since our initial implementation.”

Improved efficiency across the board

In the six years since implementing Epicor ERP, and applying subsequent

No external implementation partner was used, but the internal team was supported directly by Epicor as required

IT in Manufacturing

version updates, Webtec has substantially improved its operational efficiency. The company has become much more agile and has grown by over 70%, yet its headcount remains virtually unchanged. The company used to employ four people to manage filing and administration, but by utilising the available facilities in Epicor ERP, the need for paper filing, administration and rekeying have all but disappeared. “We have greatly increased our efficiency and our staff are more focused on the tasks that count,” comments Stephen. “We are making extensive use of many features: such as the recently improved financials module. End of month accounts used to take two weeks on the old system, in Epicor the first draft is available for checking on day one of the new month!” Webtec now has better visibility of its business through the use of real-time data. Most staff and managers have two screens at their desks, one of which is dedicated to displaying task appropriate dashboards, the majority of which are updated in real-time. These dashboards are interactive allowing users to interrogate the transactions behind a figure. Improved visibility has allowed Webtec to build a stronger cash position, in part by using production planning to lower on-hand stock levels, and increase the on-time delivery performance. Using business activity queries (BAQs) and building reports or dashboards has meant staff can easily interrogate Epicor using both one-off queries or regularly produced reports. The fully integrated CRM processes have been one of the greatest gains for Webtec, as they can be used remotely by staff at tradeshows to enter leads directly into Epicor from the stand. Staff back at head office can then immediately act on a lead to supply relevant material or information. Because CRM is a core part of Epicor, the success of a show in terms of customer quality, orders secured, or marketing spend can be easily assessed. “Epicor has lowered our maintenance overheads, made us more efficient and helped us make significant strides forward as a business,” concludes Stephen. “There are only a couple of people in the company that don’t use it every day, and one of them is the cleaner!”

December/January 2014-15 | Issue 10 | Volume 17 | www.themanufacturer.com 83

Microsoft Dynamics

Analytics goes mainstream The cloud is changing the world of analytics, Microsoft’s Colin Masson tells IT Contributing Editor Malcolm Wheatley.

nalytics is hot. Big Data is hot. And the combination of the two is even hotter. But so far, a lot of the gains derived from combining the two have tended to be among manufacturers at the larger end of the size spectrum. But it doesn’t have to be that way, stresses Colin Masson, Microsoft’s global industry director for manufacturing and distribution. How

It wasn’t so long ago that you needed big computers, big budgets, and big brains to do big data, which restricted it to large companies with teams of increasingly scarce and expensive data scientists. Now, even the smallest manufacturer can get started

so? Because the world of technology has changed, and with it the whole analytics and big data paradigm. “It wasn’t so long ago that you needed big computers, big budgets, and big brains to do big data, which restricted it to large companies with teams of increasingly scarce and expensive data scientists,” he points out. “Now, even the smallest manufacturer can get started. The reason, of course, is the Cloud. And the Cloud, explains Masson, has changed the equation in two important ways. First, it’s a source of high-powered computer processing power. And, importantly, computer processing power that manufacturers don’t

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IT in Manufacturing

need to physically own in order to be able to use. Simply rent the computing time required, on a lowcost pay-as-you-go basis. And second, because the cloud also provides access to high-powered applications which can process all that data-applications that can also be subscribed to, rather than bought outright. The latest generation of analytics software has never been more intuitive and easy to use. Which for many manufacturers can be a hugh plus. But if the era of ‘big computer, big budget, big brains’ big data analytics is firmly in the past, manufacturers can certainly be forgiven for asking themselves if they actually possess the requisite big data in the first place. Masson’s emphatic answer: they do. Take manufacturers’ ERP systems, for instance. Microsoft Dynamics AX user JJ Foods, he points out, is surfacing new learning within the Microsoft Dynamics AX infrastructure. When customers make contact, the system surfaces predictions based on analysis of previous purchases. The ERP data is held in-house, he stresses, but the analytics is done in the cloud, leveraging a suite of applications running on Microsoft’s Azure cloud platform. Likewise, he adds, another source of big data is that which is presently locked away inside a myriad of devices: devices on manufacturers’ factory floors, devices belonging to their customers, and devices in their upstream and downstream supply chains. And while the Internet of Things serves as a conduit to make that device data accessible for analysis, it’s the cloud that is transforming the costs and ease of that analysis for intelligent operations. Lido Stone Works, for instance, leverages Microsoft’s Azure Intelligent Systems Services to allow experts from the providers of the industrial equipment to remotely monitor and manage their production processes, which - like sales analysis - is one of the core analytics scenarios that Microsoft sees being utilised in manufacturing. “It’s condition monitoring, remote diagnostics and predictive maintenance rolled into one - all without requiring scarce experts to be put on the payroll, or requiring manufacturers to purchase large expensive computers,” sums up Masson. “In short, it’s the future of intelligent operations.”

FURTHER INFO: For more information, please visit www.microsoft. com/en-gb/dynamics/manufacturing

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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

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Lighthouse Systems

IT in Manufacturing

The misconceptions about MES Tim Barber, European Business Director and Cofounder of Lighthouse Systems discusses the three misconceptions that are often connected with MES. Number 1 - MES is an IT project

Manufacturing executions systems (MES) involves IT, sure. IT should be involved in its design, deployment and support but IT can’t sustain the application, can’t manage it and can’t realise the benefits. MES has to be owned by the business. Depending on the scope, this means production, quality, inventory and maintenance operations. There could be multiple owners, and ownership in operations is a new challenge. An MES project will need resourcing. Recognising this and planning this, is essential for the success of the project. By implementing MES, the

As the organisation evolves - the MES also needs to adapt

organisation is developing a new expertise, that of systemising its operations. Doing it well will bring enormous rewards.

Number 2 - Operations know the details

We’d like to think so. But the detail in the process is locked away in those who carry out the process, not in those a little bit remote who think they know how the process should operate. There is often a lot of difference between what they think should happen and what actually happens. It doesn’t have to be a problem if we recognise that, and make sure we involve the right people, from the shop floor.

Number 3 - MES is a one-off investment

MES is not like buying a piece of equipment - which is static, has a life and does what it does, until it is retired. When the MES project is finished (installed), your work is only just

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beginning. To deliver sustainable results, i.e. increase the efficiency and effectiveness of the organisation, changes to the way people work often have to be introduced. Transforming the business process may take time but it is necessary for the organisation to capitalise on the system. Then, as the organisation evolves - the MES also needs to adapt - this doesn’t have to cost the earth, but it has to be done. For these reasons MES, like continuous improvement, is a journey. On this journey the organisation will learn more about what it can do, see more opportunities. One improvement leads to the next. The good news is that each incremental investment will bring incremental return. Companies who successfully implement and sustain MES gain precious competitive advantages, such as providing complete product traceability to their customers, reducing costs (direct and indirect), dealing with adverse events quicker, introducing new products better, producing more efficiently. Understanding this, Lighthouse Systems works closely with you and your teams to help identify where the biggest returns can be made initially to ensure that your MES pays back for itself in the first six to 12 months. Our MES software platform, Shopfloor-Online, is modular, giving you the freedom to approach MES on your own terms and at a pace that is realistic for your organisation.

ERP Connect | 14 May 2015 Reading @TheManufacturer

@TM_EventsTeam

ARE YOU PLAYING

Russian Roulette WITH YOUR ERP SELECTION?

erpconnect.co.uk S I X M O N T H S O F E R P R E S E A R C H I N O N E – DAY

Terry Scuoler - EEF

TALK OF THE INDUSTRY

Roads are vital not just domestically for obtaining just in time supplies, but for delivering much needed exports to ports and airports

The road to recovery The results of a survey on the quality of UK infrastructure will not come as a surprise as it confirms the situation is poor and even appears to have deteriorated. Terry Scuoler discusses.

n particular, companies took a dim view of both their local road network, as well as the motorway and a road network. This is important as roads, which carry 70% of freight, are the backbone of the economy and the glue that holds the rest of the transport network together. For manufacturers, the road network is paramount, with over four fifths of companies rating it as critical to their company compared with just three per cent who say rail is a critical network. Roads are vital not just domestically for obtaining just in time supplies, but for delivering much needed exports to ports and airports. In short, our roads are crumbling. So what can be done about it? At the local level, local highways authorities get their budgets allocated on an annual basis, from the DfT and from their respective local councils. This budget has fluctuated wildly.

Faced with this, councils are more likely to pursue a strategy of dealing with the worst roads first (reactive maintenance), rather than a strategic preventative approach of targeting maintenance at the right time. It is estimated that a planned preventative approach over a number of years can be 20 times less expensive than reactive maintenance. This has led to a rapidly increasing road maintenance backlog of ÂŁ12bn. At the national level we saw a decline in road use on motorways during the recession. Now that we are seeing signs of growth, road use is returning to normal levels, eating up what little spare capacity there was in the system. To address these issues, the government must urgently complete the job of reforming the Highways Agency to guarantee the promised threefold increase in road investment. It should also commit to a timescale by which

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the current road maintenance backlog will be addressed. Furthermore, the government should also bring forward solutions to road projects left on the â&#x20AC;&#x2DC;too difficultâ&#x20AC;&#x2122; list for too long, in particular upgrades to the A303 in the South West, the A590 in Cumbria, the A1 and improved connectivity to regional airports. Additionally, the survey found that manufacturers rate the integration of different transport networks as the worst part of infrastructure provision in the UK and that, despite the improvement in broadband cited over the last two years, digital networks are still poorly rated. On broadband, manufacturers are becoming increasingly reliant on high quality access to maintain existing customer and supplier relationships, such as supporting maintenance and servicing activities. Yet, they are reporting that the current high speed broadband programme is being rolled out at a slow pace with poor communication and a lack of clarity on when upgrades will take place. Unsurprisingly therefore, the survey shows that manufacturers overwhelmingly prioritise further investment in road, broadband and energy networks. This month sees the last Autumn Statement before a general election when the Chancellor may make the usual pre-election giveaways his priority. The message from manufacturers, however, to the Chancellor for the remainder of this parliament is clear. If we are to take advantage of a growing economy and achieve long term sustainable growth we need a modern infrastructure network which is fit for purpose to deliver it. We must complete the job on vital roads, energy and broadband projects as soon as possible.

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