The Manufacturer March 2010 by The Manufacturer

www.themanufacturer.com March 2010 Vol 13 Issue 03

Food Industry Special People and Skills The food industry upskills

Sustainable Manufacturing CRC launch date approaches

IT in Manufacturing Market review: ERP

Food and drink The great British takeaway

Interview Troy Christensen

President, Constellation Australia and Europe

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Editor’s comment

Food, glorious food The March issue of TM celebrates food and drink, the UK’s biggest manufacturing sector. For a country that is derided for its lack of native culinary invention, exports of UK-made food and drink are very robust. Exports grew by 5.4% in the first nine months of 2009 compared with the previous corresponding period, according to the Food and Drink Federation. Big ex-pat communities in Spain, France and the US, strong brand recognition and a weak pound are part of the reason, but British food companies show real flair for market differentiation; in convenience, health and organic products and ethical areas of food production like Fair Trade. Our lead story explores why food and drink companies have succeeded overseas in a period that has been so tough on other sectors. Last month, Diageo’s chief executive Paul Walsh suggested the drinks group would consider moving production out of the UK in a harsh critique of the country’s tax regime. He targeted both the 50% income tax rate and high corporation tax rates, echoing recent comments from Unilever. The Treasury responded, saying the UK has the lowest rates of corporation tax in the G7 group, and some have suggested the timing of these comments from big companies so close to a general election is strategic. Tax hits food companies particularly hard – because retail food prices are so competitive, food has less scope to pass on cost rises to consumers, so they have to swallow them. Troy Christensen, European boss of wine distribution giant Constellation, speaks out about the taxation system on pages 28-31. He claims if the company had known of the scale of wine duty rises in the last four years it might not have invested £100m in its mega-plant in Avonmouth. While nothing to do with food, I have to mention Corus Teesside. BBC’s Question Time in Middlesborough on Feb 18 produced a rousing debate. While some panellists said Corus’s Redcar refinery had no long term business case, multi-union chairman Geoff Waterfield claimed he could pick up high value orders on the phone tomorrow and the plant deserved government assistance. Even if no buyer was on the cards, the cost to the taxpayer of subsiding 1,600 unemployed workers could be as much as that for keeping Redcar going. State support of the Teesside plant – which CEO Kirby Adams has allegedly refused – is the kind of complicated, hot potato decision that manufacturers will eye closely as we approach an election. Will Stirling, The Manufacturer

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News and features 04 News

Manufacturing news

13 Manufacturing appointments On the move

Find out who’s heading where in manufacturing

15 Economics

Forward thinking As we approach the next election, the UK’s economy is once again at a crossroads. EEF’s Steve Radley reports

16 The Big Picture

Making the most of emerging industries Prof Mike Gregory says innovation will be a key component in the drive out of the recession

17 Business as unusual Shoot me now

Anand Sharma shares his experiences when business leaders finally ‘get it’

18 Lead story

Lifting the lid on UK food exports Mark young investigates how UK food and drink continues to buck the recessionary trend

25 How do they make that? Gun making

James Purdey and Sons on the craft behind making the world’s finest guns

28 Interview

The sobering reality of business in Britain TM interviews Troy Christensen of Constellation Europe

32 Leadership and lean Culture vultures

Is management communication of a corporate culture little more than a mantra? Colin Chinery investigates

34 Special feature

How lean is your organisation?

Prof Dan Jones and David Brunt of the Lean Enterprise Academy ask why lean does not always work

Sustainable manufacturing CRC is no joke

Tim Browns considers the imminent introduction of the Carbon Reduction Commitment

Contents Innovation, design and the 40 product lifecycle There’s a Buzz about Autodesk

Edward Machin meets Autodesk’s Buzz Kross to discuss digital prototyping, paradigm shifts and the onset of menu-less environments

People and skills

Mixing up the ingredients in the skills pot 48 Mark Young explores government’s Skills for Growth strategy

Training diary 52

Barry Engstrom of HepcoMotion explains how his company is benefiting from a comprehensive staff training program

Employee of the month 53

Michelle Birchall of AB World Foods

Operations and maintenance 54

The business case for outsourcing – Ian Ritchie of Brammer UK considers the complexities of purchasing externally

IT in manufacturing

ERP: What does it mean to us today? 57

Simon Holloway considers the often confusing world of ERP

IT news wrap 63

Keeping you up to date with what’s new in IT

Manufacturinginaction Sponsored by TBM Consulting Group

Factory of the month

73 The Hadley Group Steeling an advantage Edward Machin meets a manufacturer of cold-rolled sections whose culture of success is built on innovation, innovation and innovation

Premier Interlink (Waco UK) Building on success

Hozelock In bloom

LINPAC Packaging Packing a punch

UCP Closure on closures

101 Alumet Systems Having a blast 104 LINPAC Storage Systems Shelve it 107 ATB Morley Coal’s the goal 110 Broady Flow Control Going with the flow

Newsinbrief IT

Microsoft Business Solutions partner, eBECS, has been appointed by Lotus Racing to deliver a software solution based on Microsoft Dynamics AX that will satisfy its demanding short term needs and also support its long term strategy. eBECS was the partner of choice for Lotus Racing because of its experience in the automotive industry and its ability to implement successful and demanding Microsoft Dynamics solutions within short time frames.

AUTOMOTIVE

A consortium led by micro gas turbine company, Bladon Jets, has secured investment from the Technology Strategy Board (TSB) to develop an Ultra Lightweight RangeExtender (ULRE) for next generation electric vehicles. The objective of the consortium, which includes luxury car maker Jaguar Land Rover and leading electrical machine company, SR Drives, is to produce the world’s first commercially viable — and environmentally friendly — gas turbine generator for automotive applications. The TSB has provided £15m funding for the project.

Hundreds of jobs safeguarded, adjacent markets identified and the development of new technologies are just some of the results to emerge from a dedicated mentoring programme. Offered by Accelerate and EEF, the initiative, funded by Advantage West Midlands, was established to provide automotive suppliers in the region with senior level, one-on-one support on strategic projects, business diversification and process improvements to help them emerge from the recession and win new business.

The SMMT says that a large degree of clarification and research is still needed to ensure digital radios are successfully introduced to all vehicles by 2015. In June 2009, government outlined plans for all new vehicles to be fitted with digital radios from 2013 and every vehicle currently on the road to be digitally enabled from as early as 2015.

M etal

Corus mothballs Teesside Steelmaker Corus has mothballed its Teesside Cast Products site, threatening to end more than 150 years of iron and steelmaking at the historic Teesside plant. Steel production at large parts of the Teesside plant has now stopped, with the shutdown expected to result in 1,600 jobs losses. The decision comes ten months after a consortium of four firms – Marcegaglia of Italy, Dongkuk Steel of South Korea, Duferco Participations of Switzerland, and Alvory of Argentina – prematurely terminated a 10 year contract to purchase 78% of Teeside’s production. In a statement regarding the suspension of work, Indiabased Tata, said: “It has not been possible to secure sufficient shortterm sales of slab so as to enable TCP to operate at other than a cash loss.” Last month, Corus announced that it recorded a profit for the last three months of 2009. Tata Steel Europe reported pre-tax profits of more than £94m, also recording a 1% rise in liquid steel production to 4,209 tonnes. TCP employee, Frank Harrison, who has worked in the steel industry for more than 30 years, says the Teesside workers lobbied for government assistance but to no avail. Harrison says he fears for the future, not just for himself but the entire Teeside community. “We’ll end up a ghost town,” he says. “I don’t think there is a future. I think the knock-on effect will be tremendous. I think we’ll see shops closing down and businesses going under.” Former Labour deputy leader, Lord Hattersley, commented during the BBC program

Question Time that while he hoped a buyer would emerge for the steel plant. “[The trade unions] are convinced that there are two buyers that might buy it if Corus were willing to negotiate on reasonable terms,” said Hattersley. “But they think that Corus, which is very often the case with big private companies, have vested interest in not selling…My hope is that the Government will step in because as we always know on these occasions, it cost the taxpayer as much to subsidise the unemployed worker that it does to keep [it] actually in business.” Redcar MP, Vera Baird, who met with Corus CEO Kirby Adams on Dec 4 to discuss the mothballing, says that the company flatly refused any potential government assistance. She says she offered a wage subsidy or potentially the purchase of a portion of the company’s land but both offers were declined. According to her, Kirby says the company needs an equity partner or a full buyer who will be an end-user making a profit out of finishing the slab and using it in their business. She says that while none have yet been publicised, there are serious potential buyers interested in the plant.

TCP Redcar Blast Furnace

ManufacturingNews A utomotive

UK car recalls Faults have been found in both Toyota and Honda vehicles requiring widespread recalls around the world. Toyota has announced it is to recall over 180,000 cars in the UK as the crisis over faulty accelerator pedals continues. The world’s biggest car maker has recalled nearly eight million vehicles around the world which the company estimates will cost approximately $2bn (£1.26bn) in extra costs. The company has said 180,865 vehicles may be affected by the

Toyota iQ

problem in Britain, and it is writing to the owners to arrange repairs, scheduled to start on February 10. In the UK, the seven affected models include the iQ, Aygo, Yaris, Auris, Corolla, Avensis and Verso. Honda Motor Co. has announced that it is expanding a recall of 2001 and 2002 modelyear vehicles due to concern regarding faulty airbag inflators. The recall affects primarily US and Canadian customers with 420,443 additional vehicles to be recalled taking the total number of affected vehicles to more than 900,000. Honda’s most recent announcement follows the January recall of 171,372 Jazz (2002-08) models in the UK, to arrange an examination of the master power window switch.

Newsinbrief ECONOMICS

The Chartered Institute of Personnel and Development has backed calls from the Confederation of British Industry for a freeze in national minimum wage for younger workers. Both groups say a rise in the rate for under 22 year olds is not sustainable under current trading conditions and would ultimately end up costing jobs as well as making young people a less attractive pool of potential resource.

The Federation of Small Businesses is calling on government to provide a National Insurance contribution freeze and rebates to small businesses to aid employment growth. In the organisation’s January survey, more than half of small businesses reported that the UK tax regime has prevented them from taking on more staff. This was especially so in the South East (64 per cent), the North West (60 per cent) and London (59 per cent).

A e r ospace an d d efence

A utomotive

Scrappage extension The Government’s decision to extend its popular car scrappage scheme is good news, but the car industry will still need further market support to sustain growth. The extension is designed to ensure all the allocated funding for the scheme is utilised. With £70m still unspent from the Government’s half of the fund – enough for another 70,000 vehicles – the scheme will now run to 31 March or until the money runs out. The scheme, under which buyers of new vehicles are eligible for a £2,000 discount if they trade in a model that is 10 years old or more, was expected to conclude at the end of February. David Raistrick, UK Manufacturing Leader at Deloitte, says that while the january registration figures and

the extension of the scrappage scheme are both positive outcomes for the industry, he predicts that continued success in the sector will rely on an improvement in the corporate car market.

BAE Systems’ programme to deliver 60 Terrier vehicles to the British Army has taken two important steps forward. Manufacture of the first Terrier production hull began on 27 January at the company’s Newcastle plant. In a ceremony attended by senior staff from both the MoD Combat Wheels Group and BAE Systems’ suppliers, visitors saw machining operations on the first side plate commence. Attendees at the production launch ceremony were able to see firsthand the results of the £2m investment.

Thales UK has been awarded a contract by BAE Systems to upgrade three Trafalgarclass and three Astute-class submarines with the Sonar 2076 Stage 5 system. Once work is completed, 2076 Stage 5 will be fully deployed across the Royal Navy’s nuclearpowered attack submarine fleet. The contract builds on Thales UK’s relationship with BAE Systems Submarine Solutions, demonstrating the success of the Performance Partnering Agreement jointly put in place.

Newsinbrief A e r ospace an d d efence

British Airways, in partnership with the Solena Group, is to establish Europe’s first sustainable jet-fuel plant and plans to use the low-carbon fuel to power part of its fleet from 2014. The new fuel will be derived from waste biomass. The self-contained plant, likely to be sited in east London, will convert 500,000 tonnes of waste per year into 16m gallons of green jet fuel.

BAE Systems has signed an agreement with Mitsubishi Aircraft Corporation to provide design integration and certification services for the Mitsubishi Regional Jet aircraft. A team from BAE Systems’ Regional Aircraft business at Prestwick, Scotland will provide engineering expertise on a number of work packages for the aircraft. The MRJ aircraft, a 70-90-seat family of twin-engined regional jets, will be powered by Pratt and Whitney PurePower PW1000G engines.

A|D|S, the UK’s AeroSpace, Defence and Security trade organisation, welcomed the publication of the Space Innovation and Growth Team report into the future of the UK space industry. The UK space sector commands 6% of the global market, supports 68,000 jobs, generates £6.5 bn per year for the UK economy and has experienced steady growth of 9% per annum for several years, including during the current recession.

Defence and engineering group Babcock International announced that it has made a takeover approach for rival VT Group, which has been rejected. Babcock International Group Plc, which maintains Britain’s submarine fleet, said its offer to buy VT Group Plc for approximately £1.14bn was rejected by the UK defence services company. Babcock bid the equivalent of 633.9 pence in cash and stock for each share of VT Group.

FUNDING

LCV recieves funds boost The Government has announced details of its West Midlands £29m Low Carbon Vehicle Technology Project. The scheme, which was launched by Lord Mandelson, is designed to help ensure Britain is well placed in the low carbon vehicle revolution. Jaguar Land Rover, Tata Motors, Zytek, Ricardo, MIRA, WMG, and Coventry University, the project’s partners, have invited like-minded potential suppliers to work with them in close collaboration. The Government has also announced a £64.4million package for regional development agencies to stimulate economic development across England. Funding will be disseminated as follows: Northwest Regional Development Agency: £4.4m investment in a new Centre for Nuclear Energy Technology

ONE North East: £5m package to help Tees Valley reduce energy use Yorkshire Forward: £6m funding for the regeneration of Huddersfield Waterfront East Midlands Development Agency: £22 million to help regional businesses Advantage West Midlands: £3.9m grant for Michelin East of England Development Agency: £5.5m for low carbon R&D South East England Development Agency: £7.4m investment for GKN and Rolls Royce London Development Agency: Seminars to help SMEs grow South West Regional Development Agency: £10.2m for Bristol and Bath Science Park

E ne r g y an d E nvi r onment

Newcastle wind win US company Clipper Windpower is planning to build the world’s largest offshore wind turbine blades in Newcastle. The new blades are designed to be fitted on the company’s 10 megawatt (MW) Britannia wind turbine. Each of these turbines will be able to satisfy the annual electricity consumption of over 6500 households. The factory building the blades will be based on Tyneside, creating 500 jobs by 2020. BWEA (RenewableUK) welcomed the announcement from the company saying that Clipper’s factory joins a growing number of UK businesses capitalising on the economic opportunities presented by the onshore and offshore wind supply chain. Clipper Windpower chairman, James Dehlsen, commented on the decision. “With the deployment of

the 10MW Clipper offshore turbine in UK waters, the nation will benefit from clean power, and also from the strong economic boost arising from the development and serial production of the turbines in the coming years.”

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Microsoft Dynamics® ERP creates an easy-to-use information infrastructure that helps you operate more efficiently every day. As a result, Wheelabrator Group can forecast budgets, allocate resources and maximise their ROI by having real-time customer information at their fingertips. To learn more about the improvements Microsoft Dynamics® ERP can make to your business processes, go to microsoftdynamics.co.uk/manufacturing

Datesfor yourdiary March

11-13

The Big Bang: Young Scientists’ and Engineers’ Fair will be taking place at the Manchester Central Convention Complex. www.thebigbangfair.co.uk

16-18

The Institute for Manufacturing will be hosting a three day training course focusing on Technology & Innovation Management at Jesus College in Cambridge. ifm-events@eng.cam.ac.uk

The Summit Skills Awards 2010 is being held at the British Library in London. www.summitskills.org.uk/awards/460

21-24

Sensor manufacturer SICK is exhibiting at Foodex at the NEC in Birmingham.

www.foodex.co.uk

The Midlands Aerospace Alliance is attending the annual West Midlands aerospace cluster forum at Millennium Point, Birmingham. www.midlandsaerospace.org.uk Throughout March The Institute for Manufacturing will be hosting events throughout the South East concerning supply chain and quality. For times and further information contact Jo Griffiths on 01223 748 260 or jg393@cam.ac.uk

GOVERNMENT

Mandelson checks in on Deutscheland Lord Mandelson recently visited Berlin to see how the UK can learn from the success of Germany’s innovation network. Known as the Fraunhofer model, Germany’s network of technology and innovation centres plays an important role in supporting the development and commercialisation of new technologies. These institutes have proved to be a vital link between the academic sector and the needs of industry. The visit anticipates this month’s Hauser Review. The Business Secretary has commissioned technology entrepreneur Hermann Hauser to evaluate the current and future role of technology and innovation centres in the UK. “Britain is a land of inventors and innovators,” said Lord Mandelson “I am proud of how well we create and design items, but I want to ensure we translate all our achievements into money-makers and ultimately jobs. “Germany has long been admired as a world leader in this field and so I am here to learn about their success. I look forward to reporting back on how we can use their experience to help advance economic growth in the UK.”

A e r ospace & Defence

200 apprenticeships at BAE April

13&14

The Manufacturing Institute is holding workshops focusing on lean manufacturing in Manchester (13) and Preston (14). For more information contact Emma Holt at emmah@manufacturinginstitute.co.uk

13-15

The Society of Motor Manufacturers and Traders is featuring at the Commercial Vehicle Operator show. For more information please email: enquiries@cvoperatorshow.com or telephone 01634 261 262

The Association for Consultancy & Engineering is holding a conference in London focusing on the key issues affecting consultancies and engineering firms. www.acenet.co.uk/conferences/113.

BAE Systems has launched its new apprentice recruitment campaign, which aims to place 200 apprentices across the UK. The company, which has about 107,000 employees in over 100 countries, invests over £40 million in learning and development across its UK businesses every year. The company has recently developed new training centres at its sites in Portsmouth and Govan to support apprentice development. The recruitment drive represents a reverse of fortunes for BAE Systems’s apprenticeship programme, as recruitment in parts of the business took a hit during 2009. To support the latest intake, around £500,000 has been invested to transform an existing building at Portsmouth Naval Base into a dedicated training centre with capacity for up to 100 trainees at any one time. BAE Systems is however set to cut up to 230 jobs at its submarine site in south Cumbria following a consultation with unions.

ManufacturingNews A e r ospace & Defence

Rescue helicopter chosen The Ministry of Defence and Department for Transport have selected Soteria as the preferred bidder for the UK’s Search and Rescue – Helicopter programme. The Search and Rescue – Helicopter (SAR-H) is a single harmonised Search and Rescue service in the UK, and will replace the current SAR helicopter with a bespoke capability. The contract is a 25-year private finance initiative, with Soteria working in partnership with the MoD and DfT to replace the current service with initial service provision in 2012. Defence minister, Quentin Davies, suggested that more than 20 helicopters would be constructed as a part of the contract. The Soteria consortium consists of: CHC: The current provider of the MCA interim SAR Service. RBS: Extensive record as a PFI equity investor. Thales UK: Leading MoD and DfT contractor.

Sikorsky: S92 manufacturer and a leader in the design and manufacture of military and commercial helicopters, with a distinguished pedigree in SAR.

Newsinbrief P ha r maceutical

British drug maker GlaxoSmithKline – the second largest pharmaceutical company in the world by revenue – is to cut hundreds of research and development jobs in the UK. Chief executive, Andrew Witty, says the job losses will see the company “making sure that we are spending money where we have the best chance of returns.” GSK says it wants to find cost savings of £500m over two years.

C ommunit y se r vice

S92 on I-SAR

The outstanding contribution made to charities by UK businesses will be recognised this year by the new Business Charity Awards, launched by Third Sector charity magazine and the Institute of Fundraising. The awards will recognise companies that have shown leadership and commitment in forging relationships with the voluntary sector, ranging from conventional partnerships and challenge events to innovative projects such as employee engagement and social investment.

F O O D A N D DR I N K

Diageo could walk over tax Guinness brewer Diageo has threatened to leave the UK over the new 50% tax rate on high earning individuals and what it sees as high corporation tax. In last year’s budget, Chancellor Alistair Darling said that salaries over £150,000 will have to pay a 50 per cent tax rate from April this year. There are fears that this could push the largest companies away from UK shores and Diageo’s is the latest in a growing list of warnings about potential relocations that the government has heard in recent times. Consumer goods producer Unilever issued a similar threat earlier this week while pharmaceutical company Reckitt Benckiser has also voiced its discontent. Paul Walsh Diageo, Diageo chief executive, told the BBC: “If

the (UK) tax regime becomes so egregious, either for corporates or individuals, we would have no option but to look at alternatives.” “The UK has become progressively a less attractive location to base oneself in,” he said.

Paul Walsh Diageo, Diageo chief executive

The Scottish Food and Drink Federation have invested £180k to fund a national programme to promote careers in food and drink manufacturing. Flora Mclean, Director of SFDF says: “This is a significant investment by the Scottish Government, and SFDF is proud to continue to have a central role to play in helping to make the food and drink manufacturing sector a career of choice. It is crucial for the industry’s future growth and success that we attract…skilled people.”

Reports are circulating that Cadbury’s new owner Kraft is set to mothball the Dairy Milk maker’s Somerdale factory in Bristol with the loss of 400 jobs. The Times claims it has “learnt” of this development though neither Kraft nor Cadbury has yet confirmed it. Cadbury already had plans to move production away from the site to Poland before Kraft’s £11.5bn takeover, confirmed on February 2. However, Kraft’s initial proposals had included keeping the site open.

ManufacturingNews Manufacturingoutput

Newsinbrief E ne r g y an d E nvi r onment

The latest monthly Industrial Trends Survey from the Confederation of British Industry shows export orders are continuing to grow but demand remains weak.

Output expectations for the next three months are the highest since March 2008 with a balance of +7 per cent. 25 per cent of manufacturers expect a rise while 18 per cent expect a fall. Total orders are also improving, but a balance of -36 per cent (+10pc/-46pc) still paints a bleak picture. An export balance of -23 per cent (+14pc/-36pc) is the least negative since August 2008 though. Firms are still overstocked, but slightly less so with a balance of +12 per cent. A balance of +8 per cent expects prices to rise over the coming quarter. “Manufacturing production is slowly recovering as demand for UK-made goods overseas is improving, boosted by the relative weakness of Sterling,” said CBI chief economic adviser Ian McCafferty. “Stock levels are now much closer to requirements, suggesting the period of aggressive destocking is now over.” However, “given the continued weakness of total orders, growth prospects are likely to remain subdued,” he warned. David Raistrick, UK manufacturing leader at Deloitte, said the trends show that the UK manufacturing sector should focus its efforts on advanced, high tech manufacturing to try and bring the industry share of GDP backup to the levels of around 20 per cent that it used to enjoy from its current 13 per cent. “Our manufacturing sector is no longer built upon what we consider to be traditional industries such as steel, coal and textiles,” he said. “Rather we must invest in the medium

to high-technology areas requiring the highly skilled workforce and advanced skill base that we have in abundance. These skills, together with an innovative approach and focus in these emerging areas, will help ensure a prosperous long term future for British manufacturing.” Continuing this trend, both global mergers and acquisitions of industrial manufacturing companies have grown and the total value of those deals also increased in Q4 2009. Deal value was up 313 per cent and deal volume increased 182 per cent from October to December, according to accountants PricewaterhouseCoopers (PwC). It is the first time both value and volume was up in a single quarter since January 2007. However, the company said there remains an absence of large deals – those worth $1bn or more. Most deals fell into the ‘small’ category – those worth less than $500m. However, with many of the world’s largest economic centres facing brighter horizons this year, Barry Misthal, US industrial manufacturing leader at PwC, said this could change this year. “Several factors, including the absence of the financial buyer in today’s deal activity, as well as credit considerations owing to limited available credit for most of the year, contributed to the lack of large deals in 2009,” he said. “Moving into 2010, although this trend is expected to continue, deals over $500 million may increase marginally as global economic conditions improve.”

UK capabilities in hydrogen have been boosted the Government decision to create the sixth Low Carbon Economic Area in South Wales. The most recent Low Carbon Economic Area (Lcea), which extends as far as Swindon in the South West, has been named as the leading centre for hydrogen energy. As part of this, the University of Glamorgan announced that it is investing £6.3m to develop new processes, products and services as part of the CymruH2Wales project. T e x tiles

Norfolk based curtain manufacturer Brian Fisher & Sons has announced plans to increase its workforce by 250% to cope with a surge in contract wins and heightened demand. The payroll will increase from 40 to 140 after a recruitment drive is completed. The company was set up by Brian Fisher 25 years ago and is now run by his twin sons, Stephen and Paul. Stephen Fisher estimates an increase in turnover of 15 per cent to £1.2m.

H uman r esou r ces

The Health and Safety Executive has revealed slips, trips and falls within food manufacturing companies is costing the industry £17m per year. HSE said in 2008-09 year there were 274 major injuries and 1004 minor ones within food and drink producers which resulted in employees taking three days or more off work. Across all areas of UK business, slips, trips and falls cost the UK approximately £800m, the HSE said.

SEMTA and Cogent have announced a strategic partnership agreement to improve support to employers in industries including manufacturing and nuclear. Sector Skills Councils for science, engineering and manufacturing technologies (SEMTA) and Sector Skills Council for Chemicals, Nuclear, Oil and Gas, Petroleum and Polymers (Cogent) have the responsibility for leading on skills to make these industries more competitive. Philip Whiteman, Chief Executive of Semta, says the council are committed to creating a simplified skills landscape.

ManufacturingAppointments UK Appointments Tata Motors Carl-Peter Forster

Carl-Peter Forster has been named as the new CEO of Tata Motors, and will take responsibility for global operations, including Jaguar Land Rover, which comes three weeks after the departure of David Smith from the position. Forster has 24 years international experience in the automobile industry. Most recently he was the head of

General Motors, Europe, where he looked after Opel/Vauxhall, Saab and the European activities of Chevrolet. Previous roles include 13 years experience at BMW where he held various positions, including that of managing director of BMW South Africa, and was also on the managing board of BMW responsible for manufacturing.

Schneider Electric Peter Still

Peter Still, industry standards manager at Schneider Electric, has been announced as the chairman for the CENELEC committee, TC44X, which has the title “Safety of machinery: electro technical aspects”.

Peter Still has a long history of standards work, and has been involved with TC44X for the last 14 years since becoming standards manager with Schneider Electric.

Schneider Electric Richard Beighton

Schneider Electric has strengthened its automation and control sales team with the appointment of Richard Beighton as national commercial manager for industry. Beighton, an automation and control expert, spent almost 30 years with a number of the sector’s

leading players. This includes a decade at Schneider Electric in a variety of roles, therefore bringing invaluable experience at senior commercial level, coupled with a sound knowledge of the company’s innovative technologies and solutions.

Lloyds Banking Group Chris Chambers

Lloyds Banking Group has appointed Chris Chambers as relationship director for the bank’s corporate markets manufacturing division. Chris will be responsible for strengthening relationships with existing customers across the sector and the further

development of this important business. Chambers will bring 13 years of direct relationship banking experience to his new role. He has experience of working across a broad range of sectors, including manufacturing, construction and retail.

Lawson Software announced today that Martin Hill has been appointed country manager for the UK, in addition to his current role of vice president of marketing EMEA. In his regional role, Hill will take responsibility for maintaining and developing links with local Lawson user groups, regional media and analyst organisations, consulting companies and resellers to support Lawson Business Units in the region. Mott MacDonald’s Ian Clarke has been elected chair of the Association for Consultancy and Engineering’s new Middle East Group. Simon Harden of Waterman PLC has also been elected the group’s secretary. Informally set up in April 2009, the group is composed of more than a dozen members, and includes non member firms that are active in the region, holding monthly meetings in the UAE, alternating between Dubai and Abu Dhabi. Briggs Equipment, the independent materials handling service provider, has appointed Chris Meinecke as chief operating officer. Meinecke joins the UK team from the USA, where he has worked with Briggs Equipment for over 18 years. Briggs Equipment’s parent company, Sammons Enterprises Inc, is one of the world’s largest privately owned companies who are committed to long term investment in the UK.

Lanner, the business process improvement company, has announced the appointment of Mike Shackley as director of partner sales. The appointment is part of a strategic programme of new investment to deliver aggressive growth for Lanner’s L-SIM product. L-SIM has been developed by Lanner to provide a comprehensive simulation capability to third party software vendors. David Chance has been appointed the new engineering director at Sovex Systems with immediate effect. Chance is now responsible for Sovex’s Service & Maintenance department. He will organise internal systems and processes, such as the procurement and issue of spare parts, and manage the company’s tailored operational maintenance contracts.

International Appointments Oman Air has appointed Philippe Georgiou as chief officer, corporate affairs. The departments that he will be responsible for are marketing, corporate communications and media, customer relations, emergency response, government relations and legal affairs. He will also be the official spokesperson for the airline.

To notify The Manufacturer of your company’s appointments, please contact Daniel George at d.george@sayonemedia.com and 01603 671300

Economics Forward thinking Steve Radley, chief economist, EEF

At the start of the last decade, EEF warned that the UK’s economy was at a crossroads: either we grew our manufacturing base or the UK economy would suffer the consequences. Today, as we approach the next election, we are back at that crossroads.

Manufacturers

are slowly recovering from a serious recession and starting to see improvement in their order books. But they face a huge amount of uncertainty in terms of the likely strength of recovery, of whether credit will be available and affordable to finance the upturn, and of the health of their supply chain. The coming election, and how the next government addresses the fiscal deficit, are further clouds on the horizon. The next government therefore needs to send out clear signals to business about its priorities for the economy, and set out a framework for how it will achieve them. This is vital, given that we need a diverse and dynamic manufacturing base to pay our way in the world. This will put us in a much stronger position to meet the challenges facing Britain, such as addressing climate change, meeting our strategic security needs and adapting to an ageing population ourselves rather than importing the solution. And, importantly, to enjoy the benefits of higher living standards and higher quality jobs that this will bring. The starting point must be a credible plan for reducing the fiscal deficit, centred on reductions in public spending, driven by significant improvements in the effectiveness of the public sector, strict control over costs and a fundamental rethink of what government does. The alternative of significant tax rises would weaken our competitiveness, undermine businesses’ ability to invest in growth and jobs, and send out the wrong signal to international companies looking at where to invest next. But government needs to go further than this. A strategy to diversify our economy must be embedded across government, with all levels of it focused on the future and pulling in the same direction. We need greater coordination across government to ensure consistency of strategy and delivery. Cabinet Committees, for example, should be given a greater role in the delivery of specific, cross-departmental priorities. The next government must also be clear about how it uses its influence to rebuild our economy. It must send clear signals about its long-term priorities and the importance it attaches to specific technologies or markets and work more closely with business to identify and overcome the obstacles to growth in these markets. It also needs to engage much better with industry in conveying its long-term needs when it is buying goods and services from the private sector.

Finally, at a time when finances are extremely tight, a new government must prioritise spending in areas that will deliver sustainable economic growth. The government also needs to deliver a business environment that encourages manufacturers to make their next investment here. Rather than provide a long shopping list, we highlight a few priorities. We need a tax system that provides certainty, is internationally competitive and reflects the true cost of modern machinery. We need to maintain and enhance the advantages of a flexible labour market and back this up ensuring that manufacturers can access the skills and training they need to compete. To achieve this, the education system — including the engineering diploma and apprenticeships — must deliver the science, technology and engineering skills industry needs, and the skills system must be simple, responsive and set up to collaborate with businesses on skills development. Manufacturers and government alike will need to work ever harder to take advantage of growing world markets in areas like the low carbon economy. The government can make a major contribution by creating a single source of finance to support ambitious, growing companies that are making long-term and risky investments. And it needs to ensure that UK Trade and Investment is equipped to support these companies in developing markets abroad for their new products. In the low carbon area, it must also take care not to sign up to targets to reduce carbon emissions that are out of step with the rest of the world, and would place industry at a competitive disadvantage. Manufacturers need to feel confident that they can access a secure, reliable and competitive energy supply. Britain faces major challenges in this area, and we cannot afford to repeat the delays and cost overruns of the past. To prevent this, the government needs to speed up planning decisions on the strategic investments in our infrastructure. The next government must also change the way it regulates. It can make a good start by introducing regulatory budgets that cost and limit the amount of new and existing regulations, and by strengthening the assessment it makes of the impact of new regulations at the UK and the EU level. This is a lot for any government to achieve, and it can’t be done overnight. But in the coming months, manufacturers will be listening very closely to what the major parties have to say and to the signals that a new government sends out in its early days. end

Have your say at www.themanufacturer.com

The big picture Making the most of emerging industries Professor Mike Gregory Institute for Manufacturing

Manufacturing has been recognised as a key component of the drive out of recession. This will need innovation right across the value chain, and particularly where emerging industries are concerned, says Professor Mike Gregory.

For

most people, innovation comes down to the process of turning research and development into new products or services, but R&D should not just be seen as the first step of a linear process. In our modern, broad view of manufacturing, there are opportunities for innovative ideas to make significant contributions all along the value chain — from marketing through design, production, distribution, service and, increasingly, sustainability The UK’s ability to generate new ideas is an endowment which many countries envy, but it must be matched by the ability to transform research into global leadership in new industries. This means that we need to be able to spot emerging opportunities and then track and support them in ways which recognise the characteristics of emerging technologies and the products and markets in which they might flourish. This is a long game. The first working laser was demonstrated 50 years ago, but it took decades to identify and exploit the many opportunities which the technology presented. We are, however, getting better. Plastic Logic, a spinout from the University of Cambridge’s Physics Department, develops products using plastic electronics and has just launched its first mass market product, the QUE reader, at CES in Las Vegas — but this has still taken more than 20 years. Plastic Logic highlights the UK’s continuing ability to generate new ideas, and could be an early example

‘Particle image velocimetry, a laser based measurement technique for high speed flows. The Institute for Manufacturing

For more details visit www.ifm.eng.cam.ac.uk

of the many new businesses that plastic electronics will spawn. But if we better understood industry emergence, could we have accelerated this? So what is an emerging industry? We can see reasonably clearly when industries have emerged, but how do we spot one before it has? In fact, we should be focussing on the processes of emergence in a cross-section of promising developments rather than ‘betting the farm’ on a single opportunity. The process of emergence is contingent on a wide range of factors, few of which can be reliably predicted in the early stages of a new technology or opportunity. Understanding emergence involves understanding how value-creating networks of activity arise. Often these networks are global, and we need to be able to identify and acquire the complementary knowledge and capability which are required to assemble in order to create world class industries. The Engineering and Physical Sciences Research Council is supporting our own efforts to get under the skin of this vital question: how best to bring together the separate bits of expertise that go together to create an industry. This first stage has been to develop ‘emergence maps’ — visual aids which help to chart key interactions which can impact on the trajectory of emergence. With maps now available for over 25 industries, we are beginning to see clear patterns of barriers and enablers which can hinder or facilitate emergence. Hopefully, this will help industry and government to design strategies and policies which can capture value from ideas. This is more than entrepreneurship; it requires consistent and long term understanding of how things are emerging and the flexibility to quickly exploit unanticipated opportunities. The UK remains a hot bed of ideas. The renewed interest in manufacturing is creating the right climate to establish new and productive industries which can create the next generation of products, services and of course jobs. Just what the economy needs. end

businessasunusual Shoot me now Anand Sharma, Chairman and CEO, TBM Consulting Group

The

Chinese business executive kept repeating that phrase, “Shoot me now.” This was in the late 1990s. He was touring a Mexican factory that made small appliances. He was blown away by what he was seeing. His factory in China produced a similar product on a traditional assembly line. There, 60 or so people sat like birds on a wire on either side of the slowly moving line. Following batch production methods, it took months for parts to move from receiving to final assembly. By contrast, in the Mexican factory six to eight people arranged in a U-shaped work cell assembled one product every 10 minutes. Total productivity was six to eight times higher than this man’s China operation, and his quality was nowhere near as good. Seeing lean production methods in action really opened his eyes. His company eventually bought the company that owned the Mexican facility, in part, to learn more about what they were doing so they could replicate it in their other factories. We periodically arrange executive boot camp tours of factories and businesses that have transformed their companies using lean and Six Sigma methodologies. A few years ago the owner of an Indian company came with us on a North American tour. On the first day, when everyone introduced themselves and explained why they were there, he admitted, “I’m here just to get my son off my back. He thought this was important enough that he paid for me to be here out of his own pocket. So I thought, maybe I should go. What do I have to lose?”

Life changing Starting from zero expectations, he began to warm up over the first few days, but something happened on the third day. That’s when we toured a company that, while not in the same industry, was similar enough to his own that he really began to see the possibilities for his operations, and began calculating the potential returns. At the end of that trip this business owner said it had been the most life-changing event of his professional life. The company has since made radical gains in on-time delivery, quality, and productivity, and grown sales by 2% during an economic recession that has ruined many of its competitors.

When it comes to leading your organisation on its lean journey, seeing what other companies have achieved can both instruct and inspire. Here, Anand Sharma shares his experiences with business leaders at that moment when they finally “get it”. On another one of these tours the CEO couldn’t attend. He was too busy. So a couple of his direct reports came along. They got fired up about what they saw. Specifically, they saw how lower volume, more highly customised production methods might open up new markets to the company. Even though the operations leaders eventually convinced the CEO to visit another firm that had been on a successful lean journey for more than 10 years, he still didn’t think it would work for them. The CEO was fixated on their high volume, high margin product lines, and he was partial to another approach to operational improvement that was popular at the time.

Get out there – most lean companies are willing and proud to share what they’ve accomplished

Fortunately, his business leaders were persistent and pushed to move ahead with lean anyway; they committed their operating units to saving more than $30 million over the next three years. They saved more than $28 million in the first 12 months. That got the CEO’s attention. So have the three consecutive quarters of sharp earnings growth in the midst of a recession that has been driven by more flexible production methods and a string of new product introductions. Whatever your company calls its approach to continuous improvement, whatever the specific tools that you happen to use, you won’t get anywhere if your leaders don’t understand what’s possible. If they don’t believe, if they’re not passionate in that belief, there’s no way that they can make the managers who report to them understand or believe. So get out there. You’ll find that most lean companies are willing and proud to share what they’ve accomplished, and interested in learning what they can from you as well. Let your team see what’s possible. They, too, could be blown away. end

Have your say at www.themanufacturer.com

Lifting the lid

on UK food and drink exports

Exports of food and drink from the UK continue to buck the dire recessionary trend suffered by most other manufacturing sectors. Mark Young explores.

The

UK food and drink industry is the biggest manufacturing sub sector in the UK, accounting for 15% of total manufacturing output. The sector directly employs 440,000 people, and conservative estimates put indirect employment at 1.2 million. Between them, the UK’s 7,000 food and drink producers generate over £70bn in annual turnover. Despite the recession, people still have to eat. That is of course one important factor as to why the sector is performing so well? However another important contributor to that success is that the industry is succeeding where almost all other areas of UK manufacturing are floundering — British exports of food and drink are flourishing. According to UK Trade and Investment (UKTI), food and drink exports from the UK increased by 33% between 2006 and 2009. And the recession has failed to rain on this parade in the way it has elsewhere. The Food and Drink Federation (FDF) reports that in the first nine months of 2009 UK food

and drink exports grew by 5.4% compared with the same period a year earlier. By contrast, exports of all UK goods were down 14.3% over the same period. If this performance was maintained through the second half of 2009, food and non-alcoholic drinks exports will reach just shy of £10bn, and will almost certainly register a fourth consecutive year of record growth. High demand for non-alcoholic drinks from Europe made this the best performing category, recording growth of 22.5% between January and September last year. British meat is in high demand — with beef up 36.8% to £206.1m and lamb up 19.5% to £224.2m. Our sausages have met the seal of approval from a market that arguably knows them best; export growth of 17.4% has largely been driven by demand from Germany. Ice cream (+29.8% to £53.7m), sauces and condiments (+15.5% to £134.7m), and breakfast cereals (+14.2% to £310.3m) are a few more gems among many in food and drink export growth. The influence of the low value of the pound against the euro cannot be ignored since eight out of Britain’s top 10 export markets use the single currency. However, Julian Hunt, director of communications at the Food and Drink Federation, asserts that Britain competes on many factors beyond price. For him, Britain’s talent is in its versatility. “The UK’s reputation in terms of quality and tapping into key trends is second to none,” says

Leadstory Lifting the lid on UK food exports

Top10markets

Hunt. “UK companies are “The ex-pat market should looking to differentiate on all not be underestimated,” says The Top 10 food and manner of things including FDF’s Hunt. “There are large drink markets for the UK by quality and cost, but also for ex-pat communities in places export value niche markets and trends — like Spain, the south of France convenience products, health and the US, and there has been 1. Ireland and organic, for example, as a whole new market open up 2. France well as many of the ethical to supply quintessential British 3. United States areas of food production like foods to these areas; everything 4. Spain Fair Trade. Own label products from Marmite to Walkers Crisps 5. Germany are a particular niche that the and even to a good Cheddar 6. Netherlands 7. Italy UK carved many years ago, cheese which can be hard 8. Belgium and while still a relatively new to find. It’s a relatively new 9. Greece concept on the continent, it is market because distribution and 10. Denmark one in which British companies logistics developments have only Source: UK Trade and Ivestment have consolidated a strong lead. made the market cost feasible in Our success is strongly linked to the last five years or so.” our vision and adaptability.” A little help from my friends… Another factor in that success is the demand for Another theory behind the year-on-year growth in quintessentially English heritage brands. The world food exports is that it is a natural by-product of is full of rolling stones, and while only four of them companies looking for growth when the domestic are likely to achieve a lifetime contribution to music market is so consolidated. However, because this award, many others make a small yet significant consolidation is well recognised, trade organisations contribution to UK food exports. Firstly, sales of have had the foresight to set up good support British brands in Eastern and Central Europe have measures. This includes UK Trade and Investment, risen in recent years, in line with the increase in the Food and Drink Exporters Association, the people from those countries going backward and Regional Development Agencies and the Food and forward to work in the UK. It appears workers leave Drink Federation. Until a year ago, that portfolio of UK shores with a taste for British tea and can’t support included another organisation called Food quench the thirst without it back on home soil. In the first six months of 2009, exports of food and non-alcoholic drinks were up 13.4% to £65m in Poland, 21.8% to £36m in the Czech Republic, and 10.3% to £5.3m in Lithuania. Secondly, there is It was good to have Food from Britain a veritable army of British nationals dotted around as a dedicated one stop shop for food the world who also just can’t get on without their and drink companies as it provided a favourite home-grown brands.

much clearer support channel. But it’s become harder and harder for a primary vehicle for supporting exporters so what we’ll all be doing is helping with food shows, exhibitions, local training events and research on markets.”

Julian Hunt, director of communications, Food and Drink Federation

Developments at United Biscuits include engagement of all its employees in the UBUK Lean Way programme, process innovations in flow-wrap technology and modern energy management systems

from Britain, which was widely recognised as that rarest of things — an invaluable government quango that really made a difference through its vocation. It was disbanded because of EU state aid rules that were put in place to ensure no member state fashions itself an unfair advantage over another. The system is effective though. Hunt says the other major European countries do not have superior support infrastructure to ours, nor are they doing anything specifically different. Germany, for example, had an organisation called Central Marketing

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Lead story Lifting the lid on UK food exports

Top10companies

Organisation of the German It used the Passport to Agricultural Industries. Export programme — “It was good to have specifically, an initiative Top ten UK food and drink Food from Britain as a within it called the Export manufacturing companies dedicated one stop shop for Market Research Scheme 1. Unilever food and drink companies, (EMRS) — to establish itself 2. Cadbury Schweppes (As at 29/05/09) as it provided a much clearer in a cluster of airports in 3. Associated British Foods support channel. But it’s the Middle East. The EMRS 4. Tate & Lyle become harder and harder allows companies to identify 5. Premier Foods for a primary vehicle to which markets to enter 6. Dairy Crest support exporters, so what and their route for doing 7. Cranswick we’ll all be doing is helping so by providing help with 8. Pure Circle with food shows, exhibitions, market statistics, regulations 9. Robert Wiseman 10. Northern Foods local training events and and legislation, customer (Source: Financial Times, 29/05/2009) research on markets.” attitudes, distribution Nine international arms of channels, and competitor Food from Britain have remained activity, strategy in operation under the name Green and performance. Seed, but they tend to serve the bigger companies Stephen Minall, a founding partner of Wrapid, that already have a large foothold in foreign markets. says: “We spent four years developing our range of Alhough one good initiative has been retired, quality food products with airports, railway stations however, there are many more that continue to and universities as our niche markets. We are now aid the growth of UK food and drink exporting. in a range of outlets within the UK, but the product Over 700 food and drink companies have is just as relevant anywhere in the world. completed UKTI’s regionally-led Passport to Export “With that in mind we decided to widen our programme. This offers new exporters free capability horizons and that’s we turned to East of England assessments, training workshops, support in International (EEI) and UKTI. That proved to be an visiting potential markets, mentoring from an export excellent move as we tapped into their knowledge professional, action plans, help with international and assistance and, importantly, it enabled us exhibitions and matched funding of up to £1,500. to make a market research visit to Dubai. Things UKTI will then continue to support the company with moved very rapidly as we identified an experienced advice and guidance once the export programme operator, the Al Khaja Group, who could take on the is up and running. It is open to companies with less franchise. Within 48 hours of returning to the UK, than 250 employees, less than 25% export sales, they had visited us and a deal was struck. and less that £35m turnover. “One of the very useful aspects has been One company that has benefited from the tapping into the knowledge of EEI people. UKTI programme is Wrapid — a Hertfordshire producer of advisor Noel Harvey has been a great source of naan and tortilla wraps that now distributes across advice and has made sure we don’t forget the a wide range of retailers and, with the help of UKTI, basics. He acts as a sounding board and knows just has licensed its brand out to takeaway outlets in what is available. It’s also been invaluable to talk to universities and airports across the world. other exporters and exchange ideas.”

Fermentation tanks at Adnams. While exports are modest, beer volume at the Suffolk brewer has doubled since 1997

Lead story Lifting the lid on UK food exports

Domestic front

Addedvalue

not the only threat to UK’s food The food and non-alcoholic producers or balance of trade; Key added value food drinks trade deficit has grown if supermarkets can’t squeeze products in double-digit from £14.80bn in the first nine domestic suppliers they may growth for the first nine months of 2008 to £15.22bn look elsewhere. By preventing months of 2009: in January-September 2009. a squeeze, we could provide a Breakfast cereals That means we are shipping in death grip. (+14.2% to £310.3m) a massive £22.31bn worth of In an ironic coincidence, the Soft drinks food — roughly three times the BIS consultation was announced (+22.7% to £224.1m) amount leaving UK shores. on the same day as the news of Sauces and condiments One of the problems is the Birds Eye’s supply chain cut — (+15.5% to £134.7m) much maligned British weather. which saw contracts with 180 Coffee (+32.1% to £54.5m) Much of our imported goods British pea farmers cancelled Ice cream tend to be fresh produce and the loss of an estimated (+29.8% to £53.7m) because farmers abroad £5.5m net income for those Crisps can grow it consistently. affected. The move followed (+14.0% to £40.4m) Supermarkets can therefore the loss of a Birds Eye contract Savoury biscuits guarantee supply and fix the company lost themselves (+10.7% to £25.2m) prices, and we all get to eat to supply peas for Findus ready Soups strawberries in December and meals, produced in Italy. (+21.4% to £22.8m) parsnips in June. It is one of This is the difficulty Source: FDF the key issues of government’s government faces. Roughly recent Food 2030 report, which two thirds of what UK farmers looked at key challenges for the food produce goes into some kind of food industry over the next 20 years: food security and processing; whether that’s abattoirs at the most self sufficiency. Government says we need to grow basic level or ready meal manufacturing at the more more of our food – the balance of trade, health of sophisticated end. our agricultural industry and guarantee of supply Says Hunt: “There is a symbiotic relationship are among the reasons why. To achieve this it looks between the two industries: they are separate but like UK consumer demands will have to soften very closely aligned. Most food products are based or, conversely, perhaps this makes the case for on agricultural inputs, so to protect the food industry genetically modified crops? government has to look at how to protect the entire A measure recently announced to help food supply chain.” producers in the domestic market is the creation But owing to the globalisation of the food of a new supermarket ombudsman to preside over industry, as shown by the Birds Eye example, this the Groceries Supply Code of Practice. “Every is difficult to do. The challenge is to address issues little helps” is a phrase now largely saturated into — including the tax regime, social welfare and public consciousness, thanks of course to Tesco employment regulation — which can affect whether and the clichés recessions breed. But “every little multinational companies see the UK as a good place helps” doesn’t help everyone. The big supermarkets to set up camp. have a notorious reputation for putting the squeeze “We need to create the right climate for on suppliers in an attempt to recoup the savings manufacturers to want to base their businesses they pass on to shoppers. Popular tactics that here,” adds Hunt. “Certainly from a food have caused contention include retrospective perspective, now that the UK has an open market amendments to terms and conditions of supply and free movement of goods afforded by the EU, and imposing rules that theft or breakage losses be big investment decisions — 20 year decisions — covered by the supplier. are made on a European or even global basis. We To appease these concerns, the Competition have to make it profitable for companies to choose Commission published the GSCoP in August this the UK.” year, and set a date of February 4 by when all At The Manufacturer we have often heard that companies had to comply. On February 5, the from the food industry that it has not necessarily Department for Business Innovation and Skills been given the attention it deserves in recent years, announced that it had buckled under pressure given the size of the sector and its contribution to from trade organisations and was launching a 12 GDP. However, initiatives like the Food Matters week consultation to ascertain what the role of an and 2030 reports, along with the aforementioned ombudsman to oversee the Code will be. support organisations, show that government There are fears, however, that a regulatory hand now understands what it needs to do to help UK which is too heavy might cause food manufacturers manufacturers. What’s needed now is consistent to lose some of the benefits afforded by working policy making across Whitehall to ensure that those closely with major retail multiples. Foreign issues are properly addressed, and that UK food is put connections for exports is one such benefit, but is at the heart of strategic and economic concerns. end

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The age of opportunity By 2020 almost a third of the UK’s workforce will be aged 50 and over. This demographic change facing British companies calls for new approaches and attitudes to older workers that can lead to significant business benefits.

“If

staff don’t want to retire then they don’t have to. It’s now a firmly established part of our culture and we would never think of doing it any other way,” says Michael Markham, Managing Director, Stanair Industrial Doors. As Britain’s demographic shift becomes a business reality, employers should prepare to evolve their approaches towards older workers. Stanair Industrial Door Services in Kettering has laid the groundwork to meet these challenges by welcoming older workers. Deployed in a range of positions – from storeman to credit control – a third of Stanair’s 74 employees are over 50 and almost 10 percent are over 65. Embracing the UK’s lack of official retirement age, the company has a flexible working culture where working beyond 65 is normal. “Retirement never crossed my mind,” says technical manager David Martin. “I enjoy my work so I wanted to continue.” When he was 64, David simply told his employer he wanted to

continue working. Stanair believe that staff don’t have to retire if they don’t want to, and by introducing flexible retirement the company has retained some of its most knowledgeable workers. “We think that if you can do the job, it’s yours,” explains Markham. “It’s silly to believe someone can do a job at 64 years and 364 days but can’t one day later. Thinking like that wastes so much talent.” It wasn’t always this way explains Markham. “When we were a young company with young workers retirement didn’t enter our thinking.” However, when staff started hitting their sixties, Stanair faced losing talent and expertise that would be costly to replace. “We realised pretty quickly that being flexible was logical for employees and the business.” This culture has helped productivity thrive. With their mentoring programme, Stanair blend experience with youth and have become a stronger business. “When you train and develop people properly you have something that’s

a real asset,” explains Markham. By finding new avenues within the company for employees’ talents, and training them for their new role, Stanair makes significant savings on external training and recruitment. Retention rates show the company inspires loyalty in its staff. Employees in their 40s have been with the company for an average of 10 years, staff in their 50s for 15 years and staff in their 60s for 17 years. Additionally, the company has evolved flexible working practices for older employees. One had Friday afternoons off so he could attend his Rover owners club and another had Mondays off as his wife worked weekends. Such accommodations make good business sense to Markham. “Flexible working practices make for a happier and more motivated workforce; without your people, you’re in trouble.” Markham has words of advice for businesses not thinking seriously about a flexible approach to retirement: “Think about what you’re letting go of. If you were happy to let your older workforce go, why didn’t you let them go earlier? The fact is their experience and know-how is invaluable.”

How to get started Think about what changes you can introduce: Review recruitment practices Consider flexible retirement policies Review working practices and introduce flexible working Introduce mentor schemes to pass on insight

The advantages Think about how attracting and retaining older workers could boost your business: Save on training and recruitment Keep productivity up – with a loyal and motivated workforce Visit www.businesslink.gov.uk/agepositive for more information.

y e h t o d w Ho e that? k a m Gun making James Purdey & Sons has been making the finest quality guns, rifles and accessories in London since 1814, supplying many of the world’s most distinguished and discerning people with their shooting needs.

1880, James Purdey — son of the founder — built his first hammerless side by side gun. Approximately 20,000 guns have been built by the firm since, most of which are still in regular use. In addition to the traditional side by side guns, clients have the option of over and under guns, as well as double barrel and bolt action rifles

A pair of Purdeys On arrival at Audley House, the company’s HQ, you will be asked about your specific style of shooting and the options and extras that suit you best. This includes barrel lengths, ribs, chokes, weight and pistol grip. Engraving will also be chosen at this stage, and can be anything from traditional rose and scroll to specially commissioned game scenes — initials can also be engraved on to the stock of the gun. Clients then select a pair of walnut blanks for the stock and arrange a visit to the West London Shooting School for a gun fitting session. Upon completion, it takes 18 months for the craftsman to finish the guns. Once the order has been placed, Nigel Beaumont, chairman of James Purdey & Sons, will liaise with factory manager, Christopher Raeburn–Cowell, to ensure the gun is produced to the highest standard. This starts by allocating serial numbers to the new guns, followed by instructing a Purdey barrel maker to start work. The barrel maker will stamp each gun’s serial number on their respective barrels, and then the work begins. The barrels are filed or ‘struck up’ to achieve the sweeping profile of each tube. The attention is on the bores and their internal dimensions. After days of work the barrels are ready to be soldered together, the ribs are tinned onto the barrels and water tank

tested to ensure freedom from leaks. At this stage, the barrels are sent away to be x-rayed to check for any faults in the metal. Once done, they return to the factory for the machining of their ‘lumps and bites’ — i.e. the hooks by which the barrels are hinged to the action cross pin. The barrels are held tightly closed by the Purdey double bolt, a patent filed by James Purdey the younger in 1863.

Action stations The order reaches the second stage of manufacture: the action shop, where the filer transforms the basic action bodies and forend ‘irons’ received from Purdey’s CNC machine shop to a complete action with accuracy to within .001 of an inch. This is all done by hand and eye, shaping the steel with chisels and files and polishing with abrasives until the barrels fits tightly and smoothly into the action. Barrels are sent to the London Proof House to ensure safety of the end user. Two proof charges are fired through each barrel, and if they pass the test are stamped with the appropriate proof marks. Following this, the lockplates, triggers, springs and ejectors are

produced and fitted to the forend and barrels. The stocker will join the stocks and forends to the action and barrels. In a process known as ‘heading up’, the Turkish walnut stock blanks are fitted to the action and lock mechanisms. Once headed up the comb, sides, length and cast of the stock are shaped to the new owner’s dimensions. Next, three long holes are drilled into the stocks from the butt-end. This is done to reduce weight and to adjust the balancing point of the gun to slightly ahead of the cross pin — a defining Purdey feature. Finally, to ensure grip fro the hand, the stocker chequers the stocks at 26 lines to the inch, each one applied by hand. Guns proceed to the engraver, who outlines his planned design in pencil before cutting into the still unhardened steel using specialist engraving tools. The guns have now passed through the hands of six craftsmen and, in the process, have accumulated over 450 hours of time.

Stage 1: The machine shop Parts and raw materials are assembled and made ready for manufacture

Stage 2: Barrel making The chopper lump barrel forgings are made for Purdey in Sheffield in EN 19 T grade mild steel. The forgings are x-rayed and certificated for traceability. Purdey use various gun drillers who drill/bore and profile the individual forgings for the various bore sizes i.e. 12 16 20 28 bore or .410. Individual tubes are machined at the factory for convergence and jointing. The barrel maker strikes (files) the barrel tubes to the right shape, hones and polishes the internal bores, brazes the barrel tubes together, and fits loop, ribs and fins as required.

Finishing touches The seventh and last stage is “finishing”. Each component is polished to a mirror finish (to inhibit rust), checked and adjusted to ensure fit and function. The guns are test fired and the trigger pulls adjusted to the correct weights; they are then sent away for the barrels to be blacked, before returning to the factory for reassembly, firing and pattern testing. Only when the finisher is satisfied with the gun’s performance will he give the stocks their oil finish. Coat after coat of specially blended oils are applied by hand to the stocks and then rubbed down with rottenstone; a type of larval pumice. The stock becomes smoother as the oil is absorbed into the grain of the wood, enabling it to repel moisture and makes the wood easier to restore to a pristine finish if damaged. Finally, slacum oil — a secret Purdey recipe handed down over nearly two hundred years — is applied coat by coat until the stocks acquire their highly prized exhibition finish.

Stage 3: Action filing Action bodies are machined from a forged billet of vacuum de- gas(no impurities) EN32 mild steel. Due to the high tolerances required wire erosion is used to produce the initial profile (wire erosion can produce components to a tolerance of +/- 12.5 microns), . Wire erosion passes an electrical current through a 0.3 mm dia brass wire which when controlled by a CNC (computer numerical control) can produce the complex shapes demanded by the Purdey shotgun. Like all the CNC Machinery at Purdey the wire machine is supervised but unmanned and once set can work 24/7. Once wired out the action body proceeds through the machine shop to the spark erosion section. Purdey has three such machines, which, like the wire erosion machine, use electric current to erode complex cavities such as action joint and bolt slots. This requires an electrode (the male form of the cavity required) to be made (by Purdey) from copper, then once set and programmed the computer takes over, again tolerances are +/- 12.5 microns (a human hair is 50 microns in dia). All holes/ bores and profiles are then milled using conventional cutters on a CNC machining centre, the action body is now complete after 35 different operations typically taking 12 to 16 weeks. The action filer prepares the action body to receive the barrels, file and chisel the action to the required shape, and fit the lock plates and the lock and trigger mechanisms.

y e h t o ? d w o H e that mak

Stage 6: Engraving

Stage 4: Locks & triggers All lock and trigger work is machined using a combination of milling /wire and spark erosion. Purdey lock parts have to mate on a number of bearing surfaces demanding high tolerances and fits. All Purdey “V” springs are machined from a forging of spring steel preshaped in order to give the spring its essential “memory”.

Gun engraving has come a long way since the Second World War and the increase in the number of gun collectors has developed the market for specially engraved guns as well as the engravers skills to meet the demand for elaborate and imaginative work. Gun engraving has thus become a recognised art from in its own right with many craftsmen engravers becoming as well known and sought after in their specialised field as artists and sculptors. Purdey outsource much of this work and the process can add several months to the delivery times of new guns and sometimes cost more than the price of the gun.

The lock and trigger maker assembles the component parts of these mechanisms, effectively the heart of the gun, having filed and shaped them to the correct angles and tolerances in order that they function correctly and reliably for hundreds of thousands of firings.

Stage 7: Stocking

Stage 5: Ejector making This is another highly specialised trade and requires great skill in filing and fitting the components of the ejector mechanisms, just as with locks & triggers

A Purdey stocker will typically take three to four weeks to make and fit the stock for a new gun. The stocker also shapes the stock to the measurements of the customer, who is encouraged to attend a special gun fitting session at the shooting grounds when ordering the gun. The wood is gun stock grade walnut, nowadays sourced exclusively from South Eastern Turkey, which has large reserves of mature trees with the best quality figuring, highly prized by Purdey customers.

Stage 8: Finishing Once the finisher has completed all the assembly and regulation work, the actions are sent away for hardening and the barrels to be blacked by specialist trade suppliers. When they return the finisher’s job is to reassemble the gun, polish all the internal parts to a mirror finish (to discourage rusting), and finish the stocks to a showroom shine by rubbing in and removing, by hand, repeated coats of Purdey’s secret recipe of slacum oil. The advantage of an oil finish stock is that it repels water and is simple to restore the minor dents and scratches acquired over a busy shooting season.

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The sobering reality of business in Britain In They have made a massive commitment to bottling alcohol in the UK, but Constellation is finding it a taxing time. Mark Young talks to the company’s President of Europe and Australia, Troy Christensen, to find out why.

November 2008, Constellation Europe opened its brand new 850,000 sq ft bottling plant and warehouse in Avonmouth, Bristol. Given the moniker Constellation Park, the site, which can house 57 million bottles of wine, is a structural symbol of an investment totalling over £100m that the global company has made on British shores. So eighteen months on, with their feet firmly under the table at the new site, there should now be a glowing and great success story to raise a glass to. “Believe me,” says Troy Christensen, President of Constellation Europe and Australia, “had we known it was going to be like this we would never have invested in the UK.”

Interview Troy Christensen

Not quite then. So why is the champagne staying on ice? It’s not that the new site is failing; Constellation Park has enabled the company to introduce a raft of cost saving and efficiency measures such as significantly reducing shipping miles, the use of light weight glass, the addition of a fourth shift and the additional capacity to 15 million cases of wine per year, almost all of which is now being utilised. The problem is one which the leaders of Diageo, Unilever and Reckitt Benckiser have all referred to in the press in recent weeks. “We’ve communicated quite clearly to Westminster and the Treasury that their punitive tax systems are making it very difficult to succeed,” says Christensen. “It’s unbelievable the amount of taxes that have been bought in against wine in the last three years. These staggering increases are an exponential factor in the profit I can make. You can never get ahead. For a four pound bottle of wine, two pounds of that is tax and when government is increasing tax up to 14p in a year, we can’t reduce that much cost. It’s not fair. We’re battling so hard just to keep our heads above the water, but unfortunately despite all our efforts we don’t actually see the savings on our margins because government picks them up and puts them in their pocket.” Now, he says, it would be very difficult to convince Constellation’s global headquarters to invest any more money in the UK, regardless of projected return on invested capital. “They’d just be worried about what was going to come next out of Westminster,” he says. “The tax code for us has no transparency or consistency. We get surprise increases against what we’ve been told before and you can’t do business like that. We’ve moved the manufacturing business here for cost savings which also reduce our carbon footprint. We’re doing all the right things and we should be benefiting, but at the end of the day it really doesn’t matter because the tax increases overcome any cost savings we can make.” Christensen’s words should act as a stark warning to Alistair Darling, and George Osborne. Constellation will sleep in the bed it has made – for now at least – having made its big investment. But should the tax regime not be changed to make it worthwhile for big companies to operate here, the UK may find repeats of Constellation’s decision are rare. Now that the company has set up camp though, Christensen will attempt to overcome the odds and make the move a profitable one for Constellation. He will focus on ‘total supply chain’ to drive up quality, brand value and customer empathy, rather than just trying to compete on cost. “We’re going to re-engage with our customers, find out what they want and then tell the major retailers what they need on their shelves. It’s about trying to work with our suppliers to make it beneficial for both of us instead of just beating each other backward and forward on price. And we’ll also be continuing to improve efficiencies in bottling so that

we can eke out a couple more million cases. The culture in England right now seems to be focussed on taking cost out all the time, and this is being driven by the massive power the major retailers have. But we’ll listen to what consumers want and will invest in innovation so that we’re able to dictate to the market on a much more product centred base. If you just concentrate on taking out margins, you’ll soon find you haven’t got any margins left. “I think soon people are going to get a bit more experimental with their consumer dollars and we’ve got a couple of propositions which are going to entice them.”

Constellation Park, Avonmouth

We’ll listen to what consumers want and we’ll invest in innovation so that we’re able to dictate to the market on a much more product centred base. If you just concentrate on taking out margins, you’ll soon find you haven’t got any margins left What has become Constellation Brands started in 1948 as a team of eight people distributing barrelled wine from the US to Europe. It now produces, sells and distributes over 100 brands of wines, beers and spirits in more than 150 countries, employs over 6,000 people around the world, operates over 50 wineries and has sales approaching $4bn dollars globally. Christensen first joined the company 14 years ago with its California wine business, having begun his professional career as a recovering accountant for Ernst & Young, and then moved through a series of finance positions at FMCG food manufacturers. He swapped coasts and returned to his native city of Chicago to work for Constellation’s beer division, where became CFO of beer and spirits. Three years ago he moved to the UK to be CFO but quickly

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Interview Troy Christensen

found himself president of the firm’s UK operations. Then, just six months ago his duties were expanded to include all of the company’s Australian operations, as well as the UK and distribution in Australia too. Christensen is a fan of manufacturing, but his numbers background has been the biggest contributor to his success in the industry, he says. “As an accountant you sit there day to day being the score keeper, and that always gets boring. But working with a bunch of people that save the company a million dollars through new innovation or improving customer service to drive more business – that’s the fun stuff. One of the important things if you want to get on is to find a way to show results. I was attracted to manufacturing and management accounting because of the ability to work with people and help them show observable results

Biography Troy Christensen 1988:

Recovering Accountant, Ernst & Young

1995:

VP of Finance for Farley Foods

1996:

Joins Constellation in its California wine division

Moves to Chicago to work for beer division

CFO of beers and spirits, Constellation

2006:

CFO, Constellation Europe Ltd

2007:

President, Constellation Europe Ltd

2009:

President, Constellation Australia and Europe

Other information: Christensen is a certified public accountant, certified management accountant, and certified Treasury professional. He has a Masters degree in management from North Western University, Illinois; has completed various classes in wine production at California State University; and is now working towards a second masters degree in information technology at DePaul University in Chicago, Illinois.

which benefit the business. I guess that’s one of the things that I’ve been lucky enough or successful enough to do – to demonstrate how finance geeks can work with other people to get a much bigger result for the business. “You’ve got people selling stuff and people making stuff. If you can figure out how to help those two things, things will work out for you.”

Simple as that? Well perhaps not, but while you feel that he is simplifying the role of leading a multinational wine producer across two continents, there are certainly elements of common sense in the way Christensen goes about his business. He says that, particularly in manufacturer, a good leader needs a talent for going out and talking to the people within the business. As long as they are committed to the success of the business, it is each individual who knows best what they need to make their lives easier or their work more productive. “It’s not just about sitting in the ivory tower pushing things down; it’s about building an understanding from the people about what they need to be successful. Because nobody knows better than they do. My job is then figuring out how to bring those things into the strategy. You’ve got to listen to everyone from the ivory tower to the third shift because there’s valuable input throughout the organisation. “You have to get people fired up and focussed on what they need to do. We’ve built a real culture in our manufacturing base of performance and camaraderie. We give people the information and the tools, rather than just instruction, which makes them feel empowered. Everyone understands what they need to.” While he doesn’t claim “cork dork” status, Christensen does have a favourite tipple. Perhaps unsurprisingly, it is one of Constellation’s brands; the Robert Mondavi Pinot Noir from Napa, California. “We bought the brand a few years ago and I was down there sorting out the details. I was lucky enough to have a glass with the man himself and I’ve never looked back.” When he gets a rare day off Troy likes to fish. Unfortunately, however, his opinion of the UK’s facilities to accommodate his favourite past time is barely better than the way he feels about the tax regime. “I hear you’ve got some good lakes which I should check out, but I’m used to fishing for big old bass in the Mid West. Sitting by the edge of a canal fishing for carp just doesn’t seem the same to me!” Christensen’s message to Whitehall is one he says he’s told them countless times before: “If tax and red tape were cut the UK would be a prime opportunity for dramatic growth because there are good minds, good entrepreneurial people, people that can drive it forward. But bureaucracy – though well intentioned – is making it hard for UK companies to compete and is stifling growth. “And get some better fish.” end

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Culture vultures

Is management communication of a corporate culture and values to its workforce little more than a mantra? The evidence, says Colin Chinery, is both compelling and damning.

Everybody

talks about it but nobody does anything. Mark Twain was jibbing about the weather, but for 21st century UK manufacturing the stricture serves the quality of culture transmission and empowerment of the workforce. Without effective communication you cannot lead, but too many executives ignore the importance of good communication and then wonder why things go wrong. And for the food & drink industry — like other sectors of UK manufacturing — performance and delivery are typically dire; the potentially sizeable benefits disregarded. “I think effective communications and the transmission of values is missing from all but a handful of the very biggest organisations,” says Richard Bruce. “Those that are failing find it extremely hard because they are very lean, with the management team spending much of its time fire fighting.” Bruce heads the Hartington Group, a provider of business solutions to food and drink companies across the UK.

And he says that so long as someone assumes ownership, effective communication does not take up a lot of time. “People tend to concentrate on making decisions and very little time on communicating them. I agree with the guru who said you should spend half your time planning what to do and the other half communicating those plans to the stakeholders. The reality is most people don’t.” John Keighley, of supply chain consultants Crimson and Co, agrees. On a 0-10 score card for effective communication in the food & drink sector, he finds very few companies in the 7-10 bracket.

Among the key traits of failures he identifies: A top-down culture with minimal workforce empowerment; Very little motivational psychology; A culture focussed on blame; and A workforce which feels under valued, and hence lacks a sense of excitement.

Leadership and Lean

“There’s a massive untapped amount of knowledge on the shop floor, but there are challenges. How do you collect it, filter, investigate and prioritise? It takes a very robust process to succeed in all this.” But when in place the rewards can be eyecatching. Keighley cites his own engagement with one UK food manufacturer: “Their cultural change need was to encourage all their staff across six factories to challenge the operational status quo and encourage a ‘Can Do’ culture. “And by achieving this within the first 12 months, this company — with a £30m profit before we started — managed to add another £5m.” The few companies that are succeeding in this area fall into two categories, says Keighley: those that had been faced with the choice of acting or failing, and those that are led by visionaries.

It’s good to talk Richard Bruce cites Justin King, C.E. of J Sainsbury. King joined the company six years ago, seen as its last chance to win back market share and remain independent. King’s first break from the previous arms-length management culture was to rename the Sainsbury HQ ‘The Store Support Centre.’ “A small thing, perhaps, but psychologically it was a very important change in the way he wanted to communicate the relative importance of people at the centre with those working at the coal face in the stores. He was effectively turning the pyramid upside down,” says Bruce. King then set about breaking down barriers and opening up the culture. Visiting stores he talks to everyone, gets their views, epitomising the culture that says everyone in the business is important in driving the business forward. “This is a model of good leadership and the effective transmission of values and ethos throughout an entire organisation.” Top-Down communication problems are compounded by a managerial generation and style immersed in MBAs and degrees, but with little comprehension of workforce realities, says Nina Dar. Dar is founder of Cheeky Monkey Business Solutions, a change management consultancy which places people at the heart of the connection of strategic vision, process and benefits delivery. “These managers have all learnt the tools, roll out the portfolio — the company values, the vision, and so on — and they really believe they are engaging their staff. There is probably more money spent now on engaging employees on that piece of work than ever before. Yet on a practical basis, employees feel more disenfranchised and disengaged than ever before.” One reason, says Dar, is a managerial generation expert only in management. “You might think that to be an expert in management you would be able to talk. And the problem with most organisations and senior teams is that they do not know how to talk. I like to put it this way; ‘Could you sit in a pub and tell me what your company is all about’? And they can’t do that. So there is

this widening gap; they are not talking the same language. Yet if you consider an organisation as a machine, employee engagement is the oil.”

I operate, you fix Heinz plant at Wigan is the largest food processing facility in Europe, making baked beans, soup, pasta and other products and producing its own cans. And here they are speaking in the same tongue. “The challenge is not actually driving change, but really sustaining it,” says Jaap Wilbers, vice president, supply chain. “And the only way we can do that is by getting all 1,400 people that work here behind what we’re doing, not a handful of people in the management team. We don’t want everyone else to leave their brains at the entrance when they come in.” “A key part of this is increasing the sense of ownership among front line operators and getting rid of the ‘I operate, you fix’ mentality. The blame culture only starts to go when you see issues as shared problems or challenges instead of arguing over which department to allocate unplanned downtime to. It’s all about team-based ownership.” “In many ways, some manufacturers are focused on the today, and because of financial and other pressures they find it very hard to think of the longer term,” says Richard Bruce. “Short-termism, one

There is probably more money spent now on engaging employees on that piece of work than ever before. Yet on a practical basis, they feel more disenfranchised and disengaged than ever before Nina Dar, Cheeky Monkey Business Solutions of the great woes of much of British industry and commerce, ‘Rules OK’ in food manufacturing.” Ideally, says Bruce, change is achieved by example, “of getting people to try it in something simple, and then seeing the difference. But in many ways, the arrogance of management is still very apparent; the view that ‘our job is to manage, yours to press the buttons.’ That’s an enormous shame, since those at the coal face often have a much better idea of these issues because they are seeing the problems”. Effective transmission and communication begins with a well-defined culture, says John Keighley. “Then it’s a process of education, and making the culture and values tangible and part of day to day business. Employees must be given the opportunity to challenge bottom up, the performance and behaviour of everyone in line with the values. All this is a challenge that should not be under-estimated. But where I’ve seen it done well, it has had a dramatic effect on the performance of the business.” end

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How Lean is your organisation? Lean does not always work. The reasons are manifold, but the common denominator is often in the identification of the root business problems the company is trying to solve. Prof Daniel Jones and David Brunt of the Lean Enterprise Academy often ask, therefore, “What is your problem?”

are often asked to evaluate how lean an organisation is. To analyse how far it has progressed down its lean journey and what its next steps should be. An obvious place to start is to take a walk through its core activities to see what they have actually done. This quickly reveals whether they have been able to go beyond lean tools and point Kaizen to make their value streams flow. Looking at their visual management also reveals whether line managers are actually using this to manage progress, to respond to interruptions and to record persistent problems for root cause analysis later. As you talk to employees you also quickly discover how many lean seeds have been sown and how many lights have gone on in their heads. In other words how many employees have been infected with lean process thinking and would not want to return to the “bad old days” before lean.

But this is just the start. The main problems and obstacles in going lean are rarely on the shop floor, but usually higher up the organisation in management. The shop floor is indeed a reflection of management. Here you also see whether top management just sees lean as a way of engaging employees in seeing and eliminating waste, by deploying lean tools right across operations. Or whether in fact lean improvement activities are being focused on closing the key performance gaps that are critical to the success of the organisation, by redesigning both the products and the processes that make and deliver them to customers. It is worth pointing out that the former does not really change the role of management. As we will see, the latter means the management has to change as much as the shop floor. Having defined the scope of the organisation’s lean ambitions we now need to look at their approach to change management.

Specialfeature Dan Jones

In most cases this will be defined by which consulting approach they used to get started. Who they used will be a good indication of where they are likely to get stuck on their lean journey. The 16-week model line approach is unlikely to last long after the consultants have left as the organisation will not have learnt enough to replicate it elsewhere. The trips to Japan, to receive the religion and learn how to do Kaizen, this approach is also likely to run into the sand once the finance director begins to examine costs. The repeat Kaizen week approach often goes hand-in-hand with an over-reliance on outside experts so that the results are not always connected, sustainable or owned by the organisation. Organisations have to develop the ability to build their own lean knowledge and examples as well as scouring for lean knowledge from elsewhere. This means getting as many experiments going in different pieces of the organisation as quickly as possible and then cross-learning and building on the lessons learnt. It does not, as we witnessed in one multinational company, mean giving a team of high fliers at HQ a year to develop their single best way and to plan its roll-out across the world. Lean is not a programme and has to be learnt by doing – and adapting to different circumstances and cultures. So, realising the full potential of lean means building a learning organisation on the one hand and a lean management system to drive it forward on the other. But beware: it is not enough for the organisation to be doing, for example, policy or strategy deployment or using A3 analysis of its key value streams, or teaching employees how to use A3 reports. It is the quality of the analysis, the decisions and the learning that emerge from them that really counts. Let us take each one in turn.

Make-to-order food for thought Narrowing down the critical root causes of the broken value streams that fail to deliver the required performance for the organisation is not easy. Deselecting the many other possible improvement activities in order to focus efforts on the vital few that will make the biggest difference to the organisation is even harder. But without this a lot of effort is wasted and a lot of potential performance improvement is missed. The point of policy or strategy deployment is to align improvement activities across the organisation to solve the organisation’s critical business problems. The book Making Hospitals Work describes how a top team in a hospital go through such an analysis. In their case discovering that streamlining the flow of emergency patients and reducing length of stay is the way to meet government waiting targets, improve infection rates and free up capacity to do more profitable, elective operations with the same resources. This is precisely the area most outside consultants are reluctant to tackle. In exactly the same way we would look for evidence of similar thinking emerging from the policy

or strategy deployment process. For example, whether a food processor recognises that making their high volume products every week in line with demand instead of in big batches to forecast every 14 weeks is the key to freeing up the cash by cutting inventories in their pipeline from 100 days to 10 and meeting all orders from retailers on time and in full. In another food manufacturer, looking at whether they had done such an analysis before deciding to move production to Poland, which will almost certainly increase the costs of complexity and decrease their ability to respond quickly to the UK market. Or whether an auto parts maker begins to understand and tackles the excessive costs of moving parts tens of thousands of miles across the world between its plants before finally reaching its customer some 40 weeks later.

The repeat Kaizen week approach often goes hand-in-hand with an over-reliance on outside experts so that the results are not always connected, sustainable or owned by the organisation Optimising the business pieces does not add up to optimising the overall flow of work. These examples point to a second key dimension of lean management – whether it takes an end-to-end perspective. Has someone been given the responsibility for gathering the facts and getting agreement from key parties to improve the key end-to-end value streams? Do the metrics driving behaviour also include the performance of the value stream as a whole, and is there a mechanism for finding and resolving conflicts between departmental and value stream objectives? Do managers have a way to see how to free up cash, reduce cost and save capital expenditure along the core end-to-end value streams? Finally is the organisation really building an experience base in problem solving among its key employees? Are senior managers teaching their junior colleagues how to think through a dialogue as they build a robust A3 plan to solve a business problem? In a real sense, scientific problem solving is the foundation of lean, evidence-based management. Perhaps the biggest disappointment we have come across is where employees and managers cannot clearly define the business problem they are trying to solve using lean. This is why the first question we usually ask is “What is your problem?” end Dan Jones is chairman and David Brunt is the senior fellow of the Lean Enterprise Academy.

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Precision engineering plastics made a carbon emissions reduction of 223 tonnes per year after taking out a Carbon Trust loan.

CRC is no joke April 1, 2010 will undoubtedly mark the beginning of metric time keeping, the retirement of Wayne Rooney and the collapse of the London Bridge. Just joking.

comparison, the start of the Carbon Reduction Commitment (CRC) on April Fools’ Day will certainly not be a laughing matter. Navigating the scheme’s intricacies, even its first year, will demand a concerted effort and clear planning from management. This article investigates the requirements for the next 12 months of CRC.

Background Around 20,000 public and private sector organisations that have one or more half hourly electricity meters will be involved in the CRC in some way. Three-quarters of these organisations will simply be required to make an information disclosure that tells the administrator about their electricity usage. Around 5,000 organisations (approximately 1,500 will be manufacturers) that consume greater than 6,000 MWh per year will be required to participate fully. This means they must not only record and monitor their CO2 emissions but also purchase allowances, initially sold by the government, for each tonne of CO2 they emit.

The more CO2 an organisation produces, the more allowances it has to purchase. There is a direct incentive, therefore, for every organisation to reduce their emissions so as to reduce the allowance payments. In addition, the better an organisation performs in terms of reducing its emissions, the higher it will appear in the annually published league table, showing the comparative performance of all participants. This in turn provides another two incentives to reduce consumption. Firstly, all the revenue raised from selling allowances is ‘recycled’ back to participants, and the league table position affects how much of the revenue each organisation receives. Secondly, there are reputational benefits due to the fact that the league table will be made available for public viewing.

What is required? In the initial period, what is the expected of the directors, energy managers, financial managers and environmental officers that will be responsible for ensuring compliance with the scheme?

Sustainable manufacturing

What you need to do in the first year of CRC

For joint ventures, the majority shareholder will be responsible for reporting emissions. Where ownership is equally split, the joint venture will be counted as a separate organisation.

1 Register 2 Satisfy the early action metrics 3 Submit a footprint report In 2009 the administrators of the scheme, the Environmental Agency (EA), sent information packs to all businesses with one or more half hourly meters (HHMs). All participating businesses should therefore already be aware of their involvement. While 2010 marks the beginning of the scheme, it has a fairly gentle introduction. No allowances need to be purchased in 2010, with the initial year requiring participants only to register (from April to September) and submit a footprint report (due 31 July 2011). It would also be advisable to achieve the requirements of the early action metrics.

The Early Action Metrics (EAM) The EAM is comprised of two aspects: achievement of both in the first year will ensure a favourable position in the first published league table. The initial aspect of the EAM is the installation of automatic meter readers for both electricity and gas. The equipment must meet a minimum standard in its ability to capture, store and retrieve data at half hour intervals. The second aspect of satisfying the EAM is to achieve the Carbon Trust Standard. Doing so requires an organisation to calculate its carbon footprint (including transport), demonstrate absolute or relative reduction in carbon emissions by more than 2.5% per year and demonstrate good carbon management. A larger organisation may satisfy the EAM for only certain parts of its operation, and will be rewarded proportionally depending on its level of participation. In order to qualify as an early action metric, an organisation must have received the Carbon Trust Standard by March 2011. By satisfying the EAM, organisations will be eligible to receive a bonus payment that will be awarded in April 2011.

Registration Registration will be open from April via an online portal, available through the Environmental Agency (EA) website. An organisation will be required to submit information regarding the its structure, the specific HHMs it is responsible for (if it has more than one meter) and its qualification status.

In the case of subsidiary companies: The highest UK parent organisation will be responsible for collating and reporting the aggregate emissions of all its subsidiaries. Groups of companies under the same ownership will be treated as one organisation. Where a companyâ&#x20AC;&#x2122;s highest parent organisation is based overseas, a UK subsidiary must be nominated to act on its behalf.

Submitting a footprint report Calculating an organisationâ&#x20AC;&#x2122;s total footprint emissions is somewhat more complicated, but is achieved by following these steps. Concrete details

CRC Timeline - Introductory Phase Qualification period

Determine Electricity kWh consumptions Prepare for regestration Regestration period CRC footprint year 1 Sale of allowances year 1 Submit report year 1 Year 1 performance league table published Sale of allowances year 2 CRC footprint year 2 Submit report year 2 Year 2 performance league table published Sale of allowances year 3 CRC footprint year 3 Submit report year 3 Year 3 performance league table published

2008

2009

2010

2011

2012

2013

[

A EUR wooden pallet stores around 29kg of CO2 taken from the atmosphere during the growth of the tree. Thatâ&#x20AC;&#x2122;s after any emissions resulting from the manufacturing and transportation of the pallet to the customer. Pallets made of wood are uniquely carbon neutral when energy is recovered at the end of their life.* Reusable, repairable and highly recyclable, heat treated wooden pallets cost up to 50% less than the plastic alternative. They are also less prone to bacterial contamination and meet global pest control standards.**

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Sustainable manufacturing

of how to report are yet to be fully released, and so what follows is a summary.

To continue to satisfy CRC requirements:

Add up all energy supply across your organisation, including electricity, gas and other fuel types such as coal, LPG or diesel. Use original copies of energy bills, meter readings or fuel delivery invoices to work out the energy supply. You can request an annual statement from each of your energy suppliers. You must request such a statement by the end of February; one month before the end of the compliance year. Suppliers will be obliged to provide the statement within six weeks from the end of the compliance year.

2 3

Planningahead

Next, exclude supplies related to energy used for domestic accommodation, transport and unconsumed supplies.

Check whether your organisation, or any part of it, already has a Climate Change Agreement (CCA). If you are a single entity participant, and at least 25% of your relevant emissions are covered by a CCA, you will be exempt from CRC. If any member of your organisational group has at least 25% of its relevant emissions covered by a CCA, that member is treated as exempt when calculating your groupâ&#x20AC;&#x2122;s total footprint emissions. If after the removal of these membersâ&#x20AC;&#x2122; energy supply, your remaining organisation has less than 1,000 MWh of half hourly electricity remaining applicable to CRC, your entire organisation will be exempt.

If after considering CCA involvement, an organisation is still qualified for CRC involvement, using the CRC conversion table (available online), organisations are able to calculate their total emissions.

Establish comprehensive monitoring and

targeting mechanisms Collect and record procedures Assign responsibilities and ownership for energy reduction tasks Carry out regular reviews of data collection Reduce emissions within the scheme Proactively develop a strategy to identify and implement future energy savings

Scheme FAQs Is there a document for reporting? There is no document available detailing the process for annual reporting and footprint reporting. The document should be published this month, just prior to the CRC launch.

What happens if complications arise with tenant/landlord contractual arrangements? The management of leasing arrangements is the responsibility of the landlord and tenant. The Government view is that there are adequate controls in place regarding landlord and tenant contractual relationships in order to successfully manage CRC. The scheme will, likely drive changes to lease contract formulation.

Once you have worked out your total footprint emissions, you can calculate your total CRC related emissions and figure out your allowance purchase requirements. There are two rules that determine CRC emissions: All your emissions from core electricity and gas sources of energy must be included in your CRC emissions, unless they are covered by the EU Emissions Trading System (EU ETS) or CCAs. At least 90% of your total footprint emissions must be regulated either by CRC or by EU ETS or CCAs. The remaining 10% of your emissions may be omitted.

If, having included all your core sources, you find that you have not yet reached the point where 90% of your total footprint emissions are regulated, then you must include some of your residual supplies.

After working out your CRC emissions, you need to record all energy sources which are not core sources, as well as the core sources, and keep this in your evidence pack. The company director will need to sign the evidence pack.

At the end of the footprint year, participants have to provide a footprint report to the scheme administrator covering: their total footprint emissions (as calculated in section 4.); their CRC emissions (in sections 5. and 6.); details of any exemptions through CCAs; and any major changes in their organisational structure. This report must be submitted, by 29 July 2011.

An automatic meter reader

How is business growth or decline taken in to account? There are three components that that make up the league table. These are: the early action metric; the absolute metric; and the growth metric, which takes account of business growth or decline.

Does the league table redistribution of funds take in to account the difference in sizes of participating companies? There is a correction factor that takes in to account the difference sizes of the organisations involved in CRC. It is a coefficient that statistically allows for the league table redistribution payments to be fair. end

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There’s a

Buzz about Autodesk

With 3D design software playing an increasingly critical role in 21st century manufacturing, Edward Machin meets Autodesk’s “Buzz” Kross to discuss digital prototyping, paradigm shifts and the onset of a menuless product environment

Nine

million global users; turnover of $2.3bn in 2009; a steady stream of corporate citizenship, innovation and software accolades; and widely recognised as an industry leader in 2D/3D design, engineering and entertainment software. Founded by John Walker to assist users in creating detailed technical drawings at an affordable margin, 2010 finds California-based Autodesk releasing digital prototyping software which is virtually unrecognisable from its offerings for the 8-bit CP/M, Victor 9000 and IBM Personal Computer systems.

Indeed, “When I show today’s students how we used to run Inventor, many of them simply refuse to believe me,” says Robert “Buzz” Kross, senior vice president of the company’s manufacturing solutions division. The early eighties found Kross working for Calma, a General Electric-owned business offering computer-aided design (CAD) systems at $500,000 a seat, and which would take anything up to a year to become productive. Autodesk entered the market in 1982 with a distinctive, cost-efficient — i.e. $3,000 — take on CAD software for the PC. “I remember vividly the first time we lost to Autodesk,” Kross recalls. “Quite simply, our customers were sacrificing critical productivity, whereas Autodesk offered a unique value proposition which has kept me interested in the company to this day.” Kross co-founded Woodbourne Inc — a provider of parametric modelling tools for the AutoCAD platform — in 1990, although the business was ultimately acquired by Autodesk in 1993. Once aboard, however, it became apparent to Kross that progression in the 2D modelling environment was proving difficult to achieve without a change in both mindset and technical applications. Accordingly,

Innovation design and the product lifecycle

“We undertook a project called Rubicon, the precursor to Inventor,” he says, “introducing 3D mechanical design software to the wider market, at that time dominated by SolidWorks.” Forward fifteen years — with releases such as Revit, Ecotect, Moldflow, Vault, Alias and Streamline, among many others, under its belt — and Autodesk continues to bestride a marketplace that Kross terms, “Ferociously competitive, often scarily so.” Nonetheless, the company seeks to differentiate itself from the wider sector by two distinct, yet ultimately interrelated, criteria. “First and foremost, we employ a pricing model that sits in direct opposition to our competitors; while many in the market offer price-points starting at $40,000, Autodesk offers a set of advanced factory tools that retail at approximately $5,000 a seat. Secondly, and almost without exception, the other market players offer PLM systems in conjunction with their CAD offerings. Given that he is yet to meet an engineer whose design tools are without fault, “We believe that by concentrating on the continual refinement of our design capabilities, Autodesk is ideally positioned to offer a robust, industry-leading suite of design applications — while simultaneously anticipating any technologies related to our customers’ needs,” says Kross.

Going digital Such singularity paid dividends in 2007, with the emergence of digital prototyping technology — recognised internally as a Damascene moment of sorts for the company. Given that his role includes countless customer visits, Kross was struck by the fact that a growing number of users were utilising 3D tools and modelling capabilities largely to assist in the construction of more detailed design drawings: those with isometric views, for example. While the blueprints were undoubtedly more complex than five years previously, they nonetheless remained a ‘smart’ AutoCAD design at best. Understanding that engineers could be reticent to, on occasion, trust product design to anything but their own hand, Autodesk invested significantly in the — then embryonic — concept of digital prototyping; i.e. the ability to virtually explore a complete product before it is built, with users given the capacity to create, validate, optimise and manage designs from conceptual design to complete manufacture. “It would be incorrect to say that others in the market haven’t attempted to follow a similar path. However, they have done so by considerably more laborious means; the Autodesk story in a nutshell,” says Kross. “Rather than a multi-million dollar process which can take months, or even years, to implement, we offer rapid, cost-effective and user-friendly solutions.” That said, arguably the most pronounced challenge in the transition to a seamless digital prototyping suite required Kross

and his cohorts to develop increased simulation capacity while ensuring that the company’s ethos — helping customers design, visualise and simulate their designs — remained in tact. Phrased by Autodesk CEO, Carl Bass, as “helping customers experience it before its real,” the crux of the business remains, says Kross, “That our products fundamentally enable users to simulate their designs better digitally than they could physically. This remains the case for every division within Autodesk, and regardless of our customers’ size, turnover or design requirements.” While such technology doesn’t wholly eradicate the need for physical prototypes, accepts Kross, destruction testing is still prevalent within the majority of modern manufacturing processes. “Assessing the structural performance a coffee cup, for example, will not require overly elaborate testing,” he says. “However, whether you are seeking to ascertain the properties of a relatively simple household product or a highly complex, cost-prohibitive industrial machine, our customers have shared a universal goal since Autodesk’s inception — to reduce, or eliminate, prototypes wherever practically possible.”

Rather than a multi-million dollar process which can take months, or even years, to implement, we offer rapid, costeffective and user-friendly solutions Buzz Kross, Autodesk

“In that sense, we don’t view ourselves as an engineering productivity tool, but a set of solutions which, very simply, enable the customer to make better products,” says Kross. “We can’t design for our clients; product innovations must come from the users themselves, and I can’t imagine they would have it any other way. That said, the Autodesk suite represents a crucial component in letting manufacturers ascertain, in unrivalled detail, how their product can realise its optimum design — thus giving the customer a crucial competitive advantage over its rivals.” Given his passion for engineering — “I can’t myself imagine anything more beautiful than a car. A jet, perhaps.” — it isn’t altogether surprising that Kross considers manufacturing as Autodesk’s most important market, despite it amounting to only 35% of company revenue. “Quite simply,” he says, “manufacturing represents the largest market segment that we operate in; four times bigger than any other sector, in fact. Moreover, because the four largest producers of software in the segment only hold 40% of market share, there is still significant penetration to be gained.”

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Innovation design and the product lifecycle

Although approximately one-fourth of Autodesk’s manufacturing division’s revenue is derived from enterprises with over $2bn revenue, “We place great importance on enabling SMEs to realise their optimum design capabilities, says Kross. “Indeed, innovation has historically come from the smaller operators; true of the market as a whole, this is especially pronounced in the manufacturing sector. With lower-cost economies becoming ever more dominant into the production of goods, moreover, manufacturers realise that while competing on price will often prove challenging, they have the ability to ‘out-innovate’ China, for example.” “Similarly, the degree of offshoring that occurs in a modern supply chain – where a product may be designed in Britain, manufactured in Ireland and supplied to Taiwan – means that companies no longer have the chance to tweak their designs slowly,” says Kross. Simulation of the factory and its layout therefore becomes critically important to effective manufacturing, with solutions such as Autodesk Navisworks enabling users to combine multi-CAD data aggregation, visualisation and optimisation of large-scale factory layouts.

Paradigms make dollars… Parametric modelling involves the use of a computer to design objects by modelling their components with real-world behaviors and attributes. “Historically, parametric modelling has been the dominant paradigm for design processes within the industry,” says Kross, “and, as such, Autodesk has long been a champion of its benefits. However, we are beginning to see a wave of direct modelling capabilities permeate the market, ensuring a fundamentally more menuless interface experience for the end user.” Offering an integration of both technologies within its product suite, Autodesk’s

Inventor Fusion is currently the sole concept modeller enabling designers to engage in direct modelling without the use of traditional parameters; a paradigm shift, in other words. Inherent in any move from entrenched, widelypraised working methods, however, is the leap of faith required by users in terms of both thinking and practical working patterns. Did the advent of direct modelling provide such concerns for Autodesk? “Absolutely,” confirms Kross. “However, critical to the transition of our products from concept to release has been Autodesk Labs, an interactive development forum which allows us to upload early and prototype technologies for both new and existing users to roadtest. For example, Inventor Fusion was introduced to the Labs in 2009, ensuring that Autodesk condition the product based on our customers’ feedback of using an eradefining design solution.” “Coupled with the refining of such technology, Autodesk’ focus going forward – echoing the principles upon which the company was founded – rests on a continual drive to increase our product range’s ease of use. Largely past the stage of making menus or icons easier to read, we are concentrating on eliminating functions and commands,” says Kross. With an ability to study its customers’ patterns of use, Autodesk can predict the regularity and order in which commands are used; streamlining the entire environment as a result. “We are looking to get to a menuless environment across the entire product suite, ensuring maximum real estate for design – which, ultimately, goes to the heart of what engineers, architects and simulation specialists look for in their design solutions,” he says. Moreover, an increasing percentage of Autodesk’s newer product offerings are developed by small, fast-paced engineering teams. Where Kross’ Inventor team traditionally numbered 700 design specialists, a number of the company’s most recent developments were put together by teams of twelve technicians, if that. “The nature of our internal infrastructure means that we are able to construct leaner, more advanced and faster tools — while retaining the interface that our customers have come to associate with an Autodesk product,” confirms Kross. “Indeed, given that our portfolio is designed to encourage, foster and facilitate innovation, it would be somewhat amiss were we not continually striving for the same in the design and execution of our products.” end

Have your say at www.themanufacturer.com

Dynamics Role Tailored Client – has allowed Poupart to configure the menus specific to the job role

Dynamic solution to optimise

fruitsoflabour Sales Laurence Olins, chairman of Poupart Ltd, a leading international supplier of fruit and vegetables to supermarkets and the non-retail sector, tells Will Stirling why the right ERP system has been critical to its fast moving, low margin business model where information control is everything.

growth at a consistent 15% year-on-year, with 19% growth to date in 2010. Annual turnover up from £30m to £260m in 22 years. A network of long standing international supplier relationships in a growth market fuelled by healthier diets and consumer habits that seem recession-resilient. And with no expensive assets or debts to service, Poupart, the international volume fruit and vegetable supplier, is experiencing deserved success. But the business has vulnerabilities. Poupart’s model is the quintessential middle man, says chairman Laurence Olins. “We make no bones about this, we are not growers or retailers,” he says. “We represent and buy from UK and overseas growers and exporters and we supply the UK marketplace with high volume, fresh produce, supplying to all eight major supermarket chains.” It’s

Specialfeature Poupart Ltd

whole product class – fruit, vegetables and salad – is perishable. With berries, for example, the shelf life is just three to four days, and stone fruit is similar. Timing and information visibility is everything. The company has five UK businesses, supplying soft fruit (berries), stone fruit, citrus fruit, apples and pears, and an import business that handles everything including vegetable and salads from around the world, plus a business in Holland serving European supermarkets. Global fresh fruit distribution is a very fast moving, high turnover, low margin business. “Because of these characteristics we must have control,” says Olins. “It has all the ingredients for success or failure – if you get it wrong, you get it very wrong. Our gross margins run at around seven per cent, that’s small. We can easily lose margin through poor stock control. We have to know what we’ve got, where we’ve got it, and we have to meet big orders on a daily basis.” Despite the risks of this delicate balancing act, Poupart, now part of the Argent Group Europe, is a market leader. In 1987, when the Olins family – Laurence, his two brothers and cousin – bought a share of the business in a management buy-in from the owners, food group Hillsdown Holdings, the business structure was back-to-front for a progressive fruit trader looking to the future. Then, only 10% of the business – worth £3m – supplied supermarkets, the main business was based in various wholesale markets, when supermarkets probably accounted for 50%-60% of UK retail. Today supermarkets represent over 85% of the UK retail fruit market. By the end of December 2009, turnover had risen to £260m. Under the Olins’ stewardship, Poupart’s supermarket business grew from £3m to £228m. The balance, over £32m, is directed at the wholesale and non-retail businesses, where Poupart is not an active player; whereas it used to own premises and pack houses, it now purely supplies to this sector. The secret of such stellar growth, and of the company restructuring to better represent the composition of the UK fruit and veg retail market, is partly down to good management and the reliable supply of a very sustainable, perennially popular product. “There are no seasons now, we don’t want seasons,” says Olins. “People are eating more fruit, they’re more aware of the health benefits, of antioxidants etc. People are currently eating more at home than in restaurants now, which feeds retail. A lot of the products we’re in, like berries, are seeing growth rates of 40%, even 50%.” But Poupart’s transformation and the greater visibility of its operations that oiled the wheels of growth, is in large part thanks to the company’s IT system.

Peach of an IT solution By the late 1990s, the management realised its legacy business software was not being developed in real-time with the business, and it would need

a more sophisticated solution. “We’re not just traders in produce, but in crucial information,” says Olins. “We are right in the middle, so our growers give us information – what they have exported and supplied on to us on a daily basis – and we have to supply information to our customers about what we’ve delivered. The more this is done electronically the better, on this growth path. We knew that without robust systems we would employ too many people and never get the growth or financial return that we anticipated.” The company looked at software providers SAP and Oracle but decided they were too large for its needs. After a thorough research exercise involving the IT manager and exterior consultants, it finally landed on Navision, a Microsoft-based system supplied and implemented by Microsoft Gold partner Tectura in 2004. “We had it tailored, with Tectura’s excellent support, to meet our needs. The platform has been continuously developed and upgraded since the installation six years ago,” Olins says. Microsoft changed the name to Dynamics Nav in 2006.

It’s a fast moving, low margin business moving perishable goods, so we must have control. It has all the ingredients for success or failure – if you get it wrong, you get it very wrong Laurence Olins, Poupart Poupart committed to a big investment, over £1m on the system and associated hardware. There were two key points to this expenditure: top level commitment and universal staff approval. “It was a high-level decision led by the Board and our IT manager at the time. At all times the directors were 100% behind the project, which is one reason why it succeeded.” Staff appreciation was a key factor in the decision. “A recent survey showed that high in the top 10 things that upset people about their employer was the IT system – you must get it right. Every one of our recent recruits has been impressed with the system. Clearly it is a key factor now in keeping happy staff.”

Bountiful benefits Olins says staff levels have not increased as fast as they would have without the new system. Having a Microsoft platform has reduced training time. Robert Hamilton, Poupart’s infrastructure manager, says: “The standard Microsoft interface means that no extensive user training is required. And a Microsoft ERP system has other benefits. Dynamics Nav runs

I=: A6HI I=>C< I=:N LDJA9 L6CI ID 7: A:;I L>I= Getting fresh produce into stores is Poupart’s business. They are masters of a tight and dynamic supply chain where delays cost money, as well as reputations. “Our service to the supermarkets has improved through increased visibility, in fact the system now provides complete tracking and traceability of all products”. Robin Dawson, Finance Director We’re proud to provide the technology systems that helps to make Poupart one of the leading companies in its ﬁeld. To see how a Tectura solution could help improve your business call us on 0845 084 0152 or visit our website www.tectura.co.uk. 6 I:8IJG6 HDAJI>DC 7J>AI DC B>8GDHD;I 9NC6B>8H C6K 6 I:8IJG6 HDAJI>DC 7J>AI DC B>8GDHD;I 9NC6B>8H C6K

Special feature Poupart Ltd

on MS SQL 2008 database which has allowed for an increased level of integration and real-time reporting via Microsoft products.” “The introduction of Web Services into Dynamics Nav 2009 has allowed Poupart to increase and simplify integration,” says Hamilton. “Applications and web pages are now easier to program and allow the use of the Dynamics Nav logic, meaning that no complicated error checking routines are required. The technical set-up has also been simplified as the application/web page communicates directly with Dynamics Nav eliminating the need for any additional software or services.” Growers can enter their data directly on the system, and there is no duplication. “We can pick up their export details, their consignments, their dispatch notes – everything is done in a paperless way. They have full access to this,” adds Olins. This visibility is crucial. “Absolutely crucially, our margins have increased, so our profits have increased, because the system has given us control and information without which we would not be able to

Ataglance

forecast demand and supply changes – so crucial for on-time delivery of perishable goods.” All orders are handled on an electronic data interchange. Because of the robustness of the IT system, the company has no need of a third party to manage this. Control is the single biggest advantage, says Olins. “The system has given us much better business control and development, and this supplydemand information can be manipulated very easily to suit our needs.” It has improved reporting in both directions, to customers and growers. The system is being continuously upgraded with the backing of Microsoft, and Poupart is included in the Microsoft TAP programme, “so we can influence the future development of the software,” he adds.

Applications and web pages are now easier to program and allow the use of the Dynamics Nav logic, meaning that no complicated error checking routines are required Robert Hamilton, Poupart

Poupart and MS Dynamics Nav Poupart Limited International fruit, vegetable and alads trader One of the oldest UK fruit marketing companies, incorporated in 1895, with history since the 1850s Part of the Argent Group Europe. Based in Broxbourne, Herts Chairman: Laurence Olins Turnover 2009: £260m up from £30m in 1987. 85% of business supplies all eight UK supermarkets Seventy per cent of produce is imported – 30% UK grown is three times higher than industry average (supermarkets import 90% of their fresh fruit requirements) Employees: 139, all white collar staff. Nine in IT team, seven in business improvement team Five UK businesses, one in Holland to serve Europe plus an export office in Spain. ERP system: Microsoft Dynamics Nav, implemented by Tectura Implemented Rubicon in 1989. Changed system to Navision in 2004, which became Microsoft Dynamics Nav in 2006.

Poupart’s ERP journey has helped to grow its nocompromise supermarket business by a factor of 76, while it became a trailblazer for this IT solution in its industry. “We identified Navision, were the first in the industry to use it, which has now been adopted by many others in fresh produce. It’s probably the mostly widely software system in the sector.” For buying, collecting and delivering several hundred thousand tonnes of fresh produce from all over the world to UK markets, within multiple sell-by dates, it is clear that a transparent, collaborative and regularly upgraded modern ERP system is vital.. end

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Mixing up the ingredients in

the skills pot The recent release of government’s national skills strategy ‘Skills for Growth’ provided the latest in a long line of calls for a more married up approach to skills provision which would see educators work with industry to provide ‘real world’ skills rather than token qualifications. The food and drink industry believes it is leading in this regard. Mark Young explores.

The

food and drink industry is “at the very forefront of innovation in skills,” according to Jack Matthews, chief executive of the food and drink sector skills council, Improve. “Our mission is to achieve world-class skills for a world-class sector,” he says, “and by increasing our engagement with employers we plan to go on increasing the level of skills and the number of people developing their skills at all levels in the industry … and to continue addressing the particular needs in food science and technology to close skills gaps and reduce unfilled vacancies.”

Here’s how they plan to do it. Improve is overseeing the creation of two new families of qualifications as part of a cross-industry development project. The Improve Proficiency Qualifications (IPQs) and Improve Vocational

People and skills

Qualifications (IVQs) have been developed with feed in from industry, and will replace the current NVQs that serve the sector. The structure has been developed by Improve, but the individual units – over 1,000 of which are in the latter stage of development – will be accredited by existing awarding organisations. The IPQ will serve existing food and drink workers while the IVQ is for prospective employees. Fully adaptable to the needs of individual businesses, the new system “will effectively be the industry’s first common currency for skills,” says Matthews. “It will allow employees to accumulate building blocks of skills awards that can meet their specific needs while also forming the basis of longer term personal development, contributing towards many different career pathways, and counting towards accredited national qualifications.” The qualifications will be based around nine specific areas of food manufacturing. Three of these areas – bakery, brewing and manufacturing excellence – have led the initiative, and will be the first to go live in May or June of this year. The other six are: fish processing; milling and cereals; red meat; poultry; and sweets and confectionery. Each area has been developed with the aid of a focus group comprising manufacturers and trade organisations from each respective sub-sector. The services of these groups will be called upon at regular intervals during the introduction of the units and subsequently beyond, to ensure continuous improvement of the delivery through feedback and evaluation.

The right recipe for apprenticeships The structure of food and drink modern apprenticeships have been significantly revamped to allow employers to introduce their own learning programmes. These too will be based on the new IPQ and IVQS. Apprenticeships are to be aligned with the new Qualifications and Credit Framework (QCF) – the credit-based accreditation system for work-based training and qualifications in England, Wales and Northern Ireland – from next year. Employers will be able to pick and choose from the units being developed for the IPQs and IVQs, Improve development director Derek Williams saying this may even lead to companies developing their own in-house Apprenticeships. “Employers will have much more power in specifying the content, process and delivery of training. Instead of opting for pre-packaged Apprenticeships with mainly fixed content, employers will be able to specify what they want for their business,” he said. “The great advantage of IPQs and IVQs is that because they are credit-based, they are extremely flexible. Virtually every skill, job role or function needed to work in any company in the food and drink industry can be given a credit rating and

incorporated into one of these new qualifications. We have been able to work directly with employers, ask them about the skills and knowledge they need, and build that into units within the IPQs and IVQs. “The flexibility of the new qualifications will translate directly to Apprenticeships. This will offer [manufacturers] the freedom to specify exactly what their apprentices learn to suit the specific needs of the business.”

Share the knowledge, share the wealth In another example of how the food and drink sector is breaking new ground in terms of collaboration between industry and skills, Manchester Metropolitan University has partnered with the National Skills Academy for Food and Drink Manufacturing for an Innovation and Growth initiative that is “informed by and responsive to the needs of smaller food and drink businesses.” The premise of the initiative is a reciprocal information share which involves collating currently practiced skills from food and drink manufacturers and then building higher level training modules out of the unlocked knowledge which can then be utilised by other companies. The partnership has sourced best practice in areas including leadership; lean manufacturing; business strategies; product and process innovation; market exploitation; commercial skills; environmental awareness; and food science technology from companies across the region. Accredited National Skills Academy training providers in the North West will then work together to pass on these skills to employers who can, once again, create bespoke training programmes by cherry-picking the capabilities they need for their operation. Some of the employers involved include Butt Foods, Goodlife Foods and Richard Whittaker. Moreover, the initiative is backed by Improve, the Sector Skills Council, and funded by the Northwest Regional Development Agency and the Northwest Universities Association. The parties involved say it is an innovative approach to unlocking ‘real world’ vocational skills which they hope to see adopted across other sectors of manufacturing and the wider UK industry beyond. Clare Keegan, business development manager at the National Skills Academy, said: “Our aim is to help business leaders in the North West region to become more productive and efficient by delivering programmes that are specific, relevant and deliver business benefit.”

A sweet approach to skills Having achieved near saturation point of NVQ to at least level two for all employees, Swizzels Matlow – the Midlands producer of ever-more popular sweetie treats including Love Hearts, Drumstick Lollies and Refresher bars – will almost certainly be among the first food and drink companies to experience the new IVQ and IPQs. And, on face value, the new

People and skills

qualifications should suit the company’s training culture well. Tony Salt, training and development director, explains that he and his team devise most of the company’s training in house but use a partnership with an academic institution in order to validate standards and, where possible, provide recognised accreditation for employees. “Where an organisation already has a strong training culture it is my belief that employers are best placed to select and conduct training for their staff,” he says. “The role of the training provider should be changed to offer a service in partnership with employers to facilitate learning in the workplace and verify the learning at each stage. The training provider role should be shifted to academic institutions, as recommended in the Leitch Review, but these institutions should also undergo their own learning experience in how to work in partnership with employers.” The IPQs and IVQs will seemingly marry up well with Swizzels-Matlow’s culture, in terms of providing bespoke packages of capabilities for individual companies which can still be recognised with qualifications. In recent years Salt has orchestrated a major change within the company’s training practices, from the “sitting next to Nellie” approach to a culture based on the same premise of peer assisted learning — but one that is more considered, more accountable and more efficient. Salt still rates peer assisted learning. One initiative he has implemented is to have members of staff write manuals for the machinery they use, in everyday English that is universally understood, rather than technology-based jargon. And, like the ‘Nellie’ method, he still has process workers teaching new members of staff the bulk of how to do the day job. It is important, he says, that trainers remain in their normal roles as well as taking on development roles because it is easier for them to build empathy and trust with those they are instructing. But it is also crucial that they are accredited with acknowledged qualifications that are validated by recognised awarding organisations. “Our partnership with our training provider ensures our employees learn the right aptitudes through the right attitude,” he says. Salt feels that overall the food and drink industry has forged effective links between companies and the skills sphere and says Improve has especially done a good job to this end. “I sincerely believe that the over the last six years the sector skills council has worked damned hard to ensure flexibility and bespoke training packages,” he says. There are still a few more improvements that can be made, though. For one, he feels the Learning and Skills Council insists on a far too bureaucratic process to skills provision which can hold up progress and, for two, “academic institution and the Learning and Skills Council also need to realise that

the year doesn’t end on July 31 and restart at the beginning of September!” He also says that while there are a plethora of training advisors available through the skills network who are a credit to the system, there are many that are not at a satisfactory standard or whose skill sets are not specific enough for the areas they are working in and it is these that undermine the skills provision sphere overall. “There are many training providers that have no idea about making food, yet are still delivering NVQ level two in food manufacture. It doesn’t make sense to me. Hopefully the new QCF system will change that.” But overall, he concludes: “The advantages of working with an academic institution far outweigh the disadvantages, and a partnership of like-minds with similar aims and objectives can be rewarding for all concerned.” The food and drink industry has shown that it is taking positive steps toward creating a more joined up culture between manufacturers and support

The great advantage of IPQs and IVQs is that, because they are creditbased, they are extremely flexible. Virtually every skill, job role or function needed to work in any company in the food and drink industry can be given a credit rating and incorporated into one of these new qualifications. We have been able to work directly with employers, ask them about the skills and knowledge they need, and build that into units within the IPQs and IVQs Derek Williams, development director, Improve

organisations when it comes to skills. Hopefully over the coming months these initiatives will prove successful and the rest of manufacturing can reproduce these models themselves. One thing that other areas of industry can learn from food and drink right now though is not to try and second guess the needs of the industry. “IPQs and IVQs have been developed because employers asked for a next generation of competence, with a simplified yet customisable structure,” says Derek Williams. “So, instead of additional qualifications, we’ve worked with industry to create a replacement for NVQs which go above and beyond their predecessor.” The food and drink and industry has spoken, and it appears to have found ears that are listening. The rest of manufacturing needs to make more noise and it needs more people to hear. end

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Peopleandskills Training

diary

Devon-based HepcoMotion recently embarked upon a comprehensive staff training programme, and is on target for efficiency savings of more than 25% thanks to help from the National Skills Academy for Manufacturing – part of Semta, the Sector Skills Council for Science, Engineering and Manufacturing Technologies. Barry Engstrom, Manufacturing Director at HepcoMotion, believes the company - which is one of the leading manufacturers of linear motion products – is already benefiting from the programme. In his second diary piece, written exclusively for The Manufacturer, he explains why.

Training to gain A

thorough review of our operations had already identified a number of skills gaps, enabling the company to draw up a matrix of training needs. A lack of awareness within the manufacturing team of lean manufacturing techniques was highlighted as a particular area of concern. We decided that the best option available was Business Improvement Techniques (B-IT) training to NVQ Level 2 for more than 100 members of staff — delivered by Bristol-based Brunel and Gordano Training, a provider approved by the Skills Academy. Since the diary piece for the last issue of The Manufacturer, this training has got underway with the first teams attending full-day training sessions every other week over an eight-week period. We agreed that the training should take place at our Tiverton plant, to keep costs to a minimum and, importantly, to ensure our employees are taught in an environment they are familiar with. Many staff members have not been in a classroom for up to 40 years, so we believe the training should take place as close

to the workplace as possible, thus helping them feel more comfortable. The training also needed to be relevant to their work; not just the lean and business improvement aspects but also the literacy and numeracy elements that have been incorporated into the programme to fill identified gaps in essential skills and improve skills for life. Another important factor in the delivery of the programme is the fact that each team undertaking the course is made up of a crosssection of the workforce. The teams of 10 to 12 include machinists, engineers, team leaders, quality managers and purchasing staff. By doing it together they feel part of a larger process, and this is building team spirit as well as driving improvement across the organisation. I can’t pretend that it has been easy to persuade everyone of the importance of the training, but once the training started, those taking part realised that the benefits are obvious. In fact, the first to complete the first phase of

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the programme are reporting back to colleagues who are now actually looking forward to getting involved. Once members of staff have completed the classroom-based training they move on to complete a work-based improvement project, and we are already seeing some early benefits. Inventory on the shop floor has been greatly reduced, and the company is well on target to reducing lead times by 20% and achieving wider efficiency improvements of 25-30%. end Next month, Barry will provide further details of individual projects and the impact they are having on the organisation.

Michelle Birchall AB World Foods Despite setting out with no formal qualifications, Michelle Birchall has worked in most functions within food manufacturing throughout a 25 year career. She is now Site Continuous Improvement Coordinator for AB World Foods — a division of associated British Foods.

Michelle

Birchall didn’t begin a career with a degree behind her. But hard work, determination and 25 years studying at the University of Life has led her to an important position within one of the UK’s biggest food groups. And it’s a position she’s flourishing in. “My career to date has given me a working knowledge of what is important, and I have developed management skills to do what I do now, as a lead facilitator of our Lean journey at AB World Foods,” says Michelle. “During 2008, we started to explore Lean at Leigh and worked with the Manufacturing Institute to implement 5S. Much was achieved from this activity that involved six skilled operators, a line engineer and myself. With management supporting us it was the start of our Lean journey.” The early work with the Manufacturing Institute was enough to convince the company that there was huge potential in making Lean a core part of its manufacturing strategy. To kick start this process, the company created a new role — Continuous Improvement Coordinator — to champion the change management process. Michelle’s standing with her colleagues, her deep knowledge of the operation and above all her passion for making a difference made her the obvious candidate for this position. Says Michelle: “With the new found experience within Lean, I jumped at the chance and was very enthusiastic to take up the challenge.” In 2009, Michelle began the next part of AB World Food’s Lean journey by working with independent consultants, Suiko, to infuse Lean throughout the entire operation. Together, they started by involving both the process workers and the management team in a scoping activity. “This approach helped to give a real structure to our journey, and has encouraged everyone at

the company to see the business with a fresh set of eyes,” says Michelle. “During the initial scoping, we identified many opportunities by applying Lean tools. We then looked at which opportunities CV in brief – could be realised Michelle Birchall immediately and just did them! The attitude of my colleagues Employment: changed by seeing the 1984 – Victoria Foods: ease of this exercise Trainee Lab Technician and my understanding 1990 – D & S Foods: of the true potential Quality Assurance Technician, of the journey grew progressing to QA Supervisor too. Most importantly, 1998 – Open choice Foods: I have learnt to be Production Manager prepared to ‘step over 2000 – Lowthers Cakes: the edge’ and I can Quality Assurance now encourage others 2001 – Patak’s Indian sauces: to see change as a Production Supervisor, positive step.” progressing to Team Leader and Senior Team Leader The outlook is looking good; the buy 2009 – Patak’s (Bought by AB World Foods in from other sections of in 2008): Site Continuous the business has been Improvement Coordinator excellent and Michelle is now developing Education: other Lean journeys — Left school with 4 ‘O’ Level’s & including supporting 3 C.S.E the sister site in Poland, encouraging knowledge transfer and giving them skills to improve for themselves. Paul Wildman, supply chain director at AB World Foods, concludes: “A year in from the early work with the Manufacturing Institute, we are now well into our Lean manufacturing journey. Michelle’s leadership and energy have been key to the progress we have made to date at both of our manufacturing sites.” end

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The business case for outsourcing The purchasing and management of spares for the daily operation, maintenance and repair of production and manufacturing equipment is often a complex, time and resource consuming issue for most organisations. It is, however, critical to maintaining continuity of production and avoiding costly downtime, says Brammer UK’s managing director, Ian Ritchie

Such

complexity often means that internal purchasing and engineering maintenance teams find the bulk of their time is taken up dealing with the immediate requirements to keep production lines running. This has a significant impact on productivity and effectiveness, meaning that time to focus on proactive and strategic projects to improve their MRO procurement, or to maximise their production output and efficiency, can be scarce. However, taking a proactive approach to optimising maintenance spares management will often deliver significant operational and financial benefits for manufacturing companies. Recognition of the complexity and opportunity for improvements is leading an increasing number of companies to outsource this function. MRO spares management is often characterised by a number of factors which make managing this area of inventory especially challenging. For example, a manufacturing plant’s spares requirement will normally involve many thousands of stock keeping

units (SKUs), most of which are technically complex and only used on specific plant equipment. These SKUs also vary greatly in volume and value, meaning an organisation must be able to economically order, receive, handle and store components that cost from a few pounds to thousands of pounds. Most MRO items have an erratic demand pattern, with only around one-third of spares consumption repeating in consecutive years. In many cases, the items come from a wide range of individual companies, meaning that rarely does the organisation enjoy any purchasing leverage.

The dangers of shopping around Another key issue here is the relative roles of buyers and stores personnel. At worst, “promiscuous buyers” court multiple quotes for an item from different suppliers to get the best deal on the day — failing to leverage the potential of focusing on one or two key sources, while also building excess transactional costs and overhead inefficiencies

Operations maintenance and repair

into the purchase ledger function. Similarly, “stores squirrels” acquire greater quantities of an item than necessary, to obtain a volume discount — ending up with piles of non-moving stock which tie up cash and, ultimately, become obsolete and written off. This issue is often compounded by a “just in case” mentality where, to avoid costly downtime, parts are held in unnecessary quantities as insurance against a possible delay in sourcing a key component. Focusing on lowest price per item is rarely the best policy for engineering components; in fact, in almost all cases total cost of ownership is at least as important as initial purchase price. The risk of production downtime from a disparate and poorly organised MRO supply chain and stores environment is thus entirely avoidable. Best practice is geared around both optimising inventory held at site, which should be routinely profiled to ensure accuracy and alignment with consumption of key components, and a focus on standardisation of key products and technologies throughout the plant. Leading-edge manufacturing companies harness the independent advice available from professional MRO distributors in both of these areas. Whether it is identifying the best product for a particular application that can deliver efficiency benefits — such as extended life, faster changeover, reduced maintenance intervals or reduced energy consumption — or providing real time analysis of spares demand patterns to enable stockholding to be optimised and ‘bad actors’ to be identified on the shop floor, the role of the professional MRO distributor can add serious value in this key operational area. With the ever-present need to minimise business costs, it has to be questioned how much time it is

worth spending on making phone calls or sending emails to save a couple of pounds here and there. Not only will introducing additional suppliers ramp up business costs further, but an approach based solely on lowest price may result in companies unwittingly choosing unauthorised distributors to supply their requirements — meaning the products received may not be to the latest specification, may have been incorrectly stored or handled, and may even be counterfeit. Outsourcing the entire process can remove all these issues, but once the decision is made to outsource spares management, how should it be implemented? One proven solution, developed by Brammer, involves establishing a dedicated site-based service (or ‘Insite’) at the customer’s premises — geared entirely to meeting the customers’ needs in terms of spare parts inventory management and the expertise and technical support provided. Total component acquisition costs are significantly reduced as the company is now dealing with only one supplier for all its MRO requirements, and real business benefits are delivered from the process improvements, stock management systems and technical support that are provided through this partnership approach. This frees up in-house procurement, engineering and maintenance teams to focus on other more valuable activities, while allowing the company to access impartial advice and added-value services which can impact strongly on operational performance and profitability. The reliable management reporting available will track component usage, which creates greater transparency and provides the basis for stock profiling, redundant stock analysis and targeted reductions in inventory and purchasing costs. Stock profiling, combined with vendor-managed inventory, will result in product and brand rationalisation, meaning a reduced spares stock holding and reduced working capital. Meanwhile, technical consultancy and application advice that can identify process improvements, improve energy efficiency and provide products with a lower total cost of ownership are further examples of how an Insite can help ensure downtime is minimised and plant operational efficiency optimised. Outsourcing MRO spares management to an authorised, professional distributor represents far more than just a way to deliver short-term savings through reduced administration and supplier liaison: it ensures continuity of supply and allows the professional MRO partner to enhance the customer’s cashflow and reduce working capital through optimising spares inventory. Perhaps most importantly of all, though, it delivers an environment where the customer and supplier can engage in a proactive way, collaborating to deliver a combination of operational performance and profitability improvements to manufacturing operations whilst eliminating risk. end

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ERP: What does it mean to us today? The wonderful TLA ERP. We have heard this term used for last two decades, but what does it really mean and, in particular, how does it help in today’s changing world. Well, let’s start by expanding the TLA: ERP stands for Enterprise Resource Planning. 56

Let

us return to the 1970’s, when I left university and joined Rolls Royce as a commercial postgraduate apprentice. The key was to be able to plan our build production schedule, working back accordingly to determine the material resources we would need to use. Materials Requirement Planning (MRP) and its development, MRP II, was some of the first software I used; a whole weekend to get the plan for the repair and overhaul line, and God help us if the punch cards were dropped or out of sequence! But of course there are other resources that we need to plan: human, financial, etcetera. And so, in 1990, the term ERP was born — coined by Gartner. InvestorWords. com defines ERP as, “An amalgamation of a company’s information systems, designed to bind more closely a variety of company functions including human resources, inventories and financials while simultaneously linking the company to customers and vendors.”

IT in

manufacturing

ERP software packages are based around a single premise: their ability to manage all the information and functions of a company, from shared data stores in a seamless manner. We can expand this definition by stating that an ERP system typically has modular hardware and software units and services that communicate on a local area network. The modular design allows a business to add or reconfigure modules — perhaps from different vendors — while preserving data integrity in one shared database that may be centralised or distributed. An ERP package, therefore, consists of a number of function silo support components on top of a common infrastructure. The key is that the software vendor has incorporated best practice into the processes supported in the package. On top of this, the vendor provides the ability to customise and extend the package to fit special requirements of the purchaser. The current modular structure in the majority of current ERP packages is still based on functional silos.

Figure 1: A simplified model of ERP (Source: ERP Past, Present and Future, Ronald McGaughey and Angappa Gunasekaran) Data Analysis

Finance

Clients

Manufacturing ERP

Sales

Inventory & Supply

Suppliers

Service

Human Resources Front-Office Functions

Back-Office Functions

A changing world With money being tight, companies are looking evermore closely at their investments. When it comes to ERP, however, for some the question remains unanswered. So what are the business issues that ERP has to cover, and what do these mean to way ERP has to work? Table 1 gives you my list. Table 1: Holloway’s Key Business Issues for ERP

BUSINESS ISSUES Globalisation Agility and Flexibility Collaboration Real-Time Information Mobile workforce support Risk Management

Oracle, in its whitepaper on Globalisation, state, “Organisations that thrive in this new environment share several key characteristics: they’ve simplified and standardised their business processes; they’ve automated those processes, and; they’re providing real-time information across their enterprises.” So, Globalisation means that we need to not only understand our business process, but simplify them so that information can be provided in real time to right people in the right format. John Hammann, SAP UK’s industry principal for manufacturing, told me, “All out new enhancement packs are about enabling a process, which crosses functional silos.” Business Process support, therefore, is key. Mark Soden, commercial director of IFS UK, says, “Agility is a key area of focus for manufacturers. What we’re seeing from businesses is the demand for ‘built-in’ analytics to support better decision-making on the shop floor, rather than a high-level Business Intelligence system. This provides information where and when it’s needed, allowing employees on the ground to take action straight away.” As a result, Agility involves empowerment. Patrick Crampton-Thomas, solution director, supply chain management at SAP, gave another insight into the effect of agility. “ERP has been the foundation for innovation in business, but in the past it wasn’t agile,” he says. “Customers have demanded that we make SAP easier to adapt. The ‘Enhancement Pack’ strategy behind

IT in manufacturing

SAP Business Suite has had a major focus on this — customers can install just the functionality they need.” It can be seen that Agility also means speed of adopting new innovation, leading to speed of implementation. On the effect of social networking on ERP, Rick Veague, chief technical officer of IFS North America, says, “Enterprise 2.0 and social media tools are designed to draw information out of people, to get them to talk. This will become more of a business critical issue as the current generation of senior manufacturing operations and maintenance professionals prepare for retirement, only to be replaced by a smaller, less experienced but more technologically sophisticated generation.” Crampton-Thomas also sees that the incorporation of social media will lead to new business applications where the ability to handle unstructured data will be key. Both he and Hammann see this working hand-in-hand with mobility technology. “Mobility isn’t new, but has massive potential,” he says. “Combined with social media/networking tools, it gives the ability to provide consumer oriented applications on mobile phones where high degree of collaboration and networking adds value. Currently, the keyboard facilities on these devices can be restrictive.” Support for mobility using appropriate user interfaces is, quite clearly, a further criterion for successful ERP. As economists and financial analysts suggest that the global economy is moving towards recovery, the focus is very much on operational and strategic initiatives that will help to position

Twenty-first century workforces will demand increasingly flexible and upto-date software that responds to the expectations set by consumers companies for the upturn. Visibility, collaboration and control across the global supply chain are key, with successful strategies in these areas separating the industry leaders from the laggards. This means real time location and associated details are crucial, ERP having the ability to work completely in realtime across the whole supply chain of different companies. If we couple this with the green collaborative supply chain initiatives of sharing loads and routes to reduce carbon footprints, I see that there is a need for open integration across supply chain software and ERPs. A recent article on ERPWire stated, “Formerly, ERP was purely restricted to fortune 500 companies, in the sense only they could afford to invest on them. This put the small and medium industries at a large disadvantage, as they were

not able to make use of the application to gain the necessary benefits. However, this drawback has been removed after the intervention of open source facilities. The concept of Software as a Service has also helped in removing the difficulties faced by small and medium enterprises.” The current battleground for ERP vendors is undoubtedly, therefore, the SME market.

ERP for tomorrow The term ERP II has been coined to describe the new ERP models that we need in the 21st Century. The term was first used by Gartner in a research note, and was defined as, “A business strategy and set of industry domain-specific applications that build customer and shareholder value by enabling and optimising enterprise and interenterprise, collaborative operational and financial processes.” ERP packages of the future must have, I believe, two key capabilities. Firstly, software licensing needs to become increasingly flexible. SaaS and SOA componentisation must be available to allow companies to purchase only what they need, in a way that meets their budgets, and to be able to integrate without any issues. Jon Reed, an independent analyst, SAP Mentor and blogger at JonERP.com, writes, “I think the economy is a game changer. Even when it returns, it will return in a way that will support different ERP business models

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IT in manufacturing

Keys

ERP

ERP II

Role

Traditional ERP was concerned with optimising an enterprise, Internal optimisation.

ERP II systems ase about optimising the supply chain through collaboration with trading partners.

Domain

ERP systems focussed on manufacturing and distribution.

ERP II systems will cross all sectors and segments of business.

Function

As ERP systems cross sectors and segments, they will no longer be able to present all things to all people.

ERP II vendors to pick the industries in which they’re going to play, and focus on providing deep functionality for those users.

Process

In ERP systems, the prosesses were focused on the four walls of the enterprise.

ERP II systems will connect with trading partners, to take those processes beyond the boundaries of the enterprise.

Architecture

Old ERP systems were monolithic and closed.

ERP II systems will be Web-based, open to integrate and interpoerate with other systems that allow users to choose just the functionality they need.

Data

Information in ERP systems is generated and consumed within the enterprise.

In an ERP II system, that same information will be available across the supply chain to authorised participants.

Figure n: Six key differences between ERP and ERP II Systems (Source: ERP Past, Present and Future, Ronald McGaughey and Angappa Gunasekaran)

than have been dominant in the past. Companies that can re-invent themselves, with more flexibility around service offerings, that’s going to be key.” Secondly, ERP must have the ability for users to use any type of mobile device — from mobile phones to computers to access the information when and where they require it. Mark Soden told me, “Twenty-first century workforces will demand increasingly flexible and up-to-date software that responds to the expectations set by consumer software. Thanks to the structural strengths of SOA, systems can now be more agile and responsive to such demands. As more manufacturers adopt social media aspects and integrate with their ERP systems, the benefits of enhanced usability will continue to accelerate a revolution in the enterprise software user-experience.”

Conclusion James Maguire holds that, “The dream of enterprise resource planning systems is that a single application can track and monitor all of a business’s functions. In a perfect world, a manager opens a single ERP app to find data about any aspect of the business, from financials to HR to distribution schedules.” Companies wanting to automate their processes using IT services have to clearly know what they want from an ERP before thinking of implementing them. David Wood, head of inventory and logistics at MSI Defence, who recently chose

IFS as their ERP, told me, “Our ERP system was some 25 years old, and not compatible with the changes in our business. We are a very projectrooted business, with a large amount of iteration of design changes. Support for engineering change, therefore, was also important. Our other business need was for support for service management to provide the necessary services for our overhaul and repair business. Knowing these requirements was important in helping us make the choice of ERP we have made.” So the ERP package has to be process and event driven, rather than transaction driven. It has to have fewer moving parts and allow configuration to be minimised as well as much easier to perform — not forgetting faster. We are looking for ERP packages to be modularised so that not only can we choose only the ones we are interested in, but be able to integrate based on standards to other packages with no issues. Our future users are much more computer literate than the current generation, but they are used to instant gratification from wherever they are. Our future ERP must accordingly have new user interfaces such as queries in texting language, carousels and other iPhone-like capabilities. Lastly, software licensing must be more flexible; not only in terms of costs for maintenance, but in recognition that manufacturing has different capex life cycles than software. I’m not asking for much, really, am I? end

Have your say at www.themanufacturer.com

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IT in

manufacturing

ITnews... Business solutions software and ERP

Infor and EEF join forces Infor, a provider of business software for mid-market customers, has announced an exclusive two-year strategic partnership with the manufacturers’ organisation, EEF. Under the partnership’s terms, EEF recognises Infor solutions as its technology of choice for UK manufacturers.

Infor will undertake a range of activities with EEF for two years, including headline sponsorship of the 2010 Future Manufacturing Awards, research among EEF membership on key topics, networking events

and speaking opportunities. In addition, Infor will be involved with EEF as it develops strategic technology offerings to its membership, as well as assisting the trade association with initiatives for the representation of UK manufacturing to the government. “The UK is the world’s sixth largest manufacturing nation, and it is good news that economic recovery is now underway, although its strength remains in doubt,” said Lee Hopley, chief economist at EEF. “But to keep the UK’s place

it needs to keep ahead of global competition. Technology is one part of that advantage and as we support manufacturers to grow their businesses, especially with regards to export, we are confident that our partnership with Infor will help deliver added value to our members.”

eBECS appointed by Fogarty

ERP Connect 2010

Microsoft Business Solutions partner, eBECS, has been appointed by Fogarty to deliver a Microsoft Dynamics AX solution charged with improving the efficiency of its internal processes and support its long term growth plans.

On April 22, The Manufacturer will be holding ERP Connect 2010, an event designed to streamline ERP review decisions for IT and business leaders. As well as providing an invaluable opportunity to meet with major vendors, the event offers a conference programme with presentations aimed at informing delegates on the new technologies, evolving best practice and changing business needs that will impact on the way they use ERP systems.

Gerry Tawton, finance director, Fogarty, said: “In recent years we have seen significant increases in the service demands of our customers. We pride ourselves on a high level of service and so recognised the need to improve our internal processes to complement those of our customers, enabling us to drive through efficiencies on both sides. “We chose eBECS as our technology partner for a number of reasons, but primarily we took great confidence from the depth of commitment displayed by all levels of the eBECS team throughout the selection process”. Stephen Wilson, marketing director, eBECS, said: “eBECS is especially excited about this project because it matches perfectly our core capabilities of manufacturing, supply chain and Microsoft technologies. We are delighted to be able to deliver improved systems to Fogarty and eBECS very much looks forward to working with them on their continued success.

Setting the scene with a presentation that assesses the closing gap between business and social technology, and giving background into developing technology policy Simon Moores, MD of Zentellgience and vice chairman of the Conservative Technology Forum, will keynote at the event followed by Paul White, director of Microsoft Dynamix UK. An impressive selection of software vendors and manufacturing organisations will present the rest of the agenda, with contributions from Lotus F1 Racing, Hozelock and the Institute for Manufacturing at Cambridge University, among others. For further information on this event visit www.themanufacturer.com/erpconnect or call Johnathon Cooper on 0207 202 4890.

Do you want to improve Operational Efficiency? Columbus IT specialise in providing Microsoft Dynamics to Manufacturers and Distributors. One of our core objectives is to improve the operational efficiency of our customers in terms of:

Effective Scheduling and Planning Streamlining Material Handling Processes Effective Stock Management Improving Supply Chain Collaboration Balancing with Environmental Pressures Columbus IT have successfully implemented over 5000 solutions since being formed in 1989.

World of Knowledge for Manufacturers and Distributers For more information and to receive your free guide,

“Improving Operational Efficiency with Microsoft Dynamics” please visit:

www.columbusit.co.uk/discrete www.columbusit.co.uk/process www.columbusit.co.uk/distribution or call freephone: 0800 0433 054

A World of Knowledge for Manufacturers and Distributors

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IT in

manufacturing

ITnews... Planning/scheduling

Business Process Modelling

Preactor provides growth for VIECL

Lanner L-SIM 2 delivers BPM simulation

Preactor International, a global specialist in planning and scheduling software, announced a business win with Vulcan Industrial Engineering Company (VIECL), an Indian provider of standard and customised engineering services and products for industries including mining, cement, steel and energy.

Lanner, the business process improvement company, announced the launch of L-SIM version 2. This new generation of Lanner’s Business Process Modelling Notation (BPMN) software will deliver greater reality to simulations, improved efficiency and far greater ease of use.

With a turnover currently approximately £22m, VIECL seeks to increase this five-fold over the next five to seven years; its investment in Preactor production planning and scheduling technology representing a vital part of this strategy. Ankit Gandhi, VIECL’s production project manager, said, “We recognised the cost savings Preactor could bring to our business and we estimate that these savings will directly help us to invest in an ERP system which will further benefit our business.” The implementation is underway, handled primarily by Preactor Software India, and is due to go-live in March 2010.

Supply chain

Syncron recognised as fastest growing supply chain vendor Syncron has been recognised in Deloitte’s annual Technology Fast 500 EMEA awards, ranking as the fastest growing supply chain software vendor in Europe for the third consecutive year. Companies using Syncron global supply chain solutions include Komatsu, Volvo, Scania, Tetra Pak, BAE Systems, Volkswagen and Atlas Copco, among others. Its client list grew throughout 2009, with new brands including US-based crane manufacturer, Manitowoc, and the Nissan forklift company, Atlet, headquartered in Europe. Syncron appointed supply chain veteran Ken Tsumura as President of Syncron Japan, whilst a new generation of Syncron’s solutions was launched that is certified by SAP AG. “Achieving sustained revenue growth of 400 per cent over five years is a tremendous achievement,” said David Halstead, partner in charge of Deloitte’s Technology Fast 500 EMEA program. “Syncron’s phenomenal growth puts it in select company.”

Recently identified by analyst house, Gartner, as a “Top 10 strategic technology for 2010”, L-SIM2 features a raft of new capabilities. Early use of simulation reduces the cycle time for continuous improvement programmes by showing which are the most effective options. It also improves agility within business systems by rapidly exploring problems to quantify risks and gains. David Jones, CEO, Lanner, said: “Organisations involved in BPM know that the earlier they use simulation, the greater the benefits.”

PLM

PTC targets global PLM leadership US software developer PTC makes its case for world domination of product lifecycle management (PLM) software at its Boston global headquarters in February. PTC presented its strategic vision of Windchill, its PLM product, at a media and analyst event last month. PLM software enables products to be designed, simulated and collaboratively shared by company departments and supply chain partners. The effect of product variants can be tested simultaneously by all parties in real-time, and their effect at stages through the product lifecycle can be measured. PLM is a growth market and more SME businesses are seeing its value: in the UK alone, PTC reports a 52% increase in year-on-year sales of Windchill products. Despite a tough 2009 for the whole PLM market, PTC was very bullish about Windchill’s prospects for taking a global leadership position in PLM, and it claims its global PLM business grew 137% year-on-year in 2009/10. Windchill is targeting 20% sustainable earnings growth in 2010 and beyond, which would require growth at double today’s market rates. Software companies are focusing more of their efforts on growth in PLM, as no-one expects the 3D CAD market, now very mature in terms of seats, to see such growth. Check the IT in Manufacturing zone on the TM website for a video interview with company CEO Jim Heppelmann.

Case study: Fairfax Meadow Sector: Food processing and distribution Fairfax Meadow, the UK-wide catering butchers, needed a modern, flexible, affordable ERP system to match their 24/7 business model. The Company Fairfax Meadow is the UK’s largest national catering butcher with a very robust reputation in the food service industry. The 40 year-old, Derbybased company is part of Argent Group Europe, the holding company for several food businesses. Blending advanced manufacturing techniques with the skills of the traditional butcher Fairfax Meadow aims to deliver high quality meat at a very competitive price. The company’s customers include many prestigious blue chip names from the hotel, pub, restaurant and travel sectors. Offering the most flexible product ranges as well as making the order processing and delivery as efficient and effective as possible is paramount. The main reason to consider replacing the company’s ERP system, says Tony Carlisle, Fairfax Meadow’s IT manager, was that the legacy system had become obsolete and he was concerned about its long term viability. The catering market had changed in the last 10 years, he adds, from a market where only about 10% of orders were received by EDI to one where, frequently, over 50% of orders are received electronically.

In June 2007 the company chose a new ERP system.

Choosing the right package.... the solution and the partner The first big decision was to decide on the best application and reseller. Fairfax Meadow had two main criteria based on their previous ERP platform. Firstly it wanted a generic solution that would allow them to diversify the way they used IT systems with in their business. Secondly it wanted to harness the benefits by aligning to a global solution and supplier which were appropriate to their type of company. It carried out a detailed analysis of its requirements with Columbus IT, a Microsoft Dynamics AX partner, who helped it identify the functions available in the Microsoft Dynamics AX platform that matched these needs. Columbus IT has worked with Microsoft Dynamics AX as a reseller since 1998 and had very broad experience in the food industry. In June 2007, Fairfax Meadow selected Microsoft Dynamics AX and appointed Columbus as its Microsoft Dynamics AX partner to implement and customise the new ERP solution from the ground up.

“The multi-tier structure of Microsoft Dynamics AX and the ease with which changes could be made best suited our environment,” says Tony Carlisle. “The product seemed very robust. The tiered structure allowed us the ability to take our own changes and those from Microsoft and our reseller and be certain that they could work together.” Microsoft Dynamics AX is an ERP solution developed specifically for mid-size and larger organisations that has a similar Windows template to all Microsoft software. It has a tiered architecture that allows different levels of functionality to be added and maintained on top of the core Microsoft Dynamics AX capabilities. Mary Hunter, managing director of Columbus IT, says: “Columbus IT has a strategic focus on the manufacturing sector. We have worked with numerous customers that are similar to Fairfax Meadow which enabled us to quickly understand their business needs. Our approach with all our customers is to be flexible, share knowledge and to work with the customer around their specific processes.”

The Project Carlisle describes the set-up of the project team. “Three of my IT staff were allocated to support me. In addition we asked five team leaders in the business to work about 30 hours a week on the project. These team leaders were supported by their staff, which meant we had a heavy business involvement in the project from the beginning.” The Columbus team supporting Fairfax Meadow comprised a project manager supported by five consultants and a set

Columbus IT

Fairfax Meadow Production Facility

of programmers to do the necessary coding for the additional requirements. The Columbus consultants split the business in two, one group looking after finance and sales, and the other the rest of the manufacturing business. The deep analysis of Microsoft Dynamics AX’s functions and the company’s requirements really paid off — Fairfax Meadow got exactly what they needed. The major integration piece of work that had to be done was to integrate Fairfax Meadow’s weigh labelling system that they use to label their products on the shop floor with the necessary modules and programmes in Microsoft Dynamics AX. Would the company do anything differently next time? Carlisle said that he would involve the supplier much earlier in the analysis and design phase to help map our critical business processes to the right technologies.

the time or input sales orders by anything up to five hours! The telesales operators have found that they can get all the information from the system that they need to process and order or answer a customer query. Microsoft Dynamics AX has reduced the amount of time that we need to spend on sales administration, which gives us more time to sell.” Columbus IT’s Hunter concludes: “Much of the success of the project was down to the close working relationship between the two organisations, the dedication of the project teams and steering support from both companies. Fairfax Meadow had clear objectives specifically around customer service, operational efficiency, business intelligence and collaboration. We were able to work with them following our structured implementation methodology to ensure that

we achieved these goals and delivered a solution to meet their business needs.” By implementing a modern ERP solution Fairfax Meadow has been able to respond to their own objectives to provide exceptional customer services and quality of product. They have achieved this by immersing the business in the implementation and in the careful preparation and full understanding of their requirements.

Darren Doughtery, Operations Planning Manager

Tracey Gardener, National Account Controller

Conclusion Darren Doughtery, Fairfax Meadow’s operations planning manager, says: “Microsoft Dynamics AX has given us tighter control on the shop floor. We are able to collect information in realtime. This means when a customer asks a query, we can answer him not only quickly but with up-to-theminute information. Tracey Gardener, Fairfax Meadow’s national account controller, adds: “The introduction of Microsoft Dynamics AX in conjunction with EDI input has for some customers shortened

Temperature Controlled Distribution

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IT in

manufacturing

ITnews... Product Lifecycle Management

Procter & Gamble extends Dassault scope

Kensey Nash selects PTC Windchill

Dassault Systèmes announced that Procter & Gamble (P&G, the world’s largest consumer goods company, has extended the scope of its V6 PLM implementation to incorporate global packaging and artwork initiatives.

PTC announced that Kensey Nash Corporation, a medical technology company that provides innovative solutions and technologies for a wide range of medical procedures, has selected Windchill, PTC’s PLM software, to manage its release to manufacturing processes for improved efficiency and visibility of compliance.

This builds on the previously announced strategic selection of Dassault solutions for an enterprise-wide PLM process. Together, Dassault and P&G are developing a highly integrated suite of products to help make the packaging process more efficient, improve speed to market, increase shelf impact and, ultimately, create a better experience for consumers. P&G will be incorporating the virtual and digital design capabilities of Catia V6 and virtual test capabilities of Simulia V6 into future packaging and artwork projects. This approach will enable

a tighter integration with suppliers, facilitating the faster creation of artwork and packaging shapes that address consumers’ needs while simultaneously meeting a variety of manufacturability and instore shelf suitability requirements. In addition, Enovia V6 will allow global collaboration, reuse of design elements, automation of repetitive tasks, and the leveraging of corporate standards while optimising the overall cost and performance of product packaging. “Our close cooperation with P&G, based on a shared vision and mutual trust, allows us to extend our V6 PLM for fast moving consumer goods in a wide range of business processes, from consumers’ insights to market delivery,” said Bernard Charlès, President and CEO, Dassault Systèmes. “More specifically, our approach to artwork and packaging, as defined in partnership with P&G, clearly marks another milestone, for the integration of enterprise product technical data and processes on a global basis.”

In addition to Windchill, Kensey Nash uses PTC’s product development software, including Pro/Engineer for the digital design of its biomaterial-based products, Mathcad to capture engineering calculations, Pro/Engineer Mechanica for virtual prototyping, and Pro/NC for physical prototyping/production machining. “Today, eight of the world’s top ten medical device manufacturers rely on PTC for their PLM solutions,” said David Rubin, director, product and market strategy, PTC. “Using PTC’s PLM software, companies like Kensey Nash are able to develop better quality, lower-cost products faster and streamline their introduction into the marketplace. We look forward to working with Kensey Nash to drive efficiencies throughout their product development processes.”

User community

SAP to hold customer conferences in Europe Building on the success of last year’s Sapphire conference, which drew an audience of more than 18,000 online and in person, SAP announced that this year’s show will be expanded to Europe.

The event continues on the heels of SAP’s presence at the CeBIT trade fair in Hanover, Germany, March 2-5, where the software company will also host a German SAP World Tour

event. The events will use real-time connected sessions between Orlando and Frankfurt to help customers share with peers and experts at either physical location, expanding the opportunities to learn first-hand about customer successes, product innovations and industry trends. Attendees will have faster access to more information than ever before, with information delivered via the latest interactive technologies on large-screen kiosks, where they can explore and experience innovative

applications of business software by SAP, customers and partners. More than 250 partners are expected to participate in sessions and exhibit on the conference floor.

Have your say at www.themanufacturer.com

The Manufacturer ERP Connect - 22 April 2010 Securing quick wins and rapid ROI from your ERP initiatives Join over 60-80 expert practitioners from across the UK All pre-qualified and actively involved ERP from UK Manufacturing Hear leading technologists put future challenges in context End-user led, this free event will enhance your understanding of ERP strategy and offer unique networking and product identification opportunities Discover how you and your colleagues can achieve efficient and effective growth in the new economy

This event is being held at the Chesford Grange, Warwickshire.

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Manufacturinginaction Sponsored by TBM Consulting Group

Putting UK manufacturers under the spotlight

Factory of the month

Edward Machin meets a manufacturer of cold-rolled sections whose culture of success is built on innovation, innovation and innovation

73 The Hadley Group Steeling an advantage

79 Premier Interlink (Waco UK) Building on success

Edward Machin encounters a modular buildings manufacturer for whom continuous improvement and staff engagement drives sit at the heart of its achievements

89 Hozelock In bloom

With strong product roots that are providing the basis for future expansion, Tim Brown discusses with managing director, Peter Rush, the importance of planning.

Edward Machin talks to LINPAC Packagingâ&#x20AC;&#x2122;s Chris Wright about winning hearts and minds in an increasingly competitive market

99 UCP Closure on closures

Alumet Systems have recently introduced a walling product designed to withstand the effects of improvised explosive devices

104 LINPAC Storage Systems Shelve it

95 LINPAC Packaging Packing a punch

101 Alumet Systems Having a blast

Tim Brown talks to operations manager, Michael Rudniak, about maintaining advantage through improvement

107 ATB Morley Coalâ&#x20AC;&#x2122;s the goal

Edward Machin finds that ATB Morley are thoroughly enjoying their current success

110 Broady Flow Control Going with the flow

TM finds Hull based valve manufacturer Broady in full control

Tim Brown talks to Fiona Reith, Key Account Director at United Closures and Plastics, about providing drinks manufacturers with innovative design and value added products

All companies featured will be entered into the MIA Award 2010

Digital Prototyping Alta Systems Ltd, a Manufacturing Solutions Partner for Autodesk - the global leader in 2D and 3D design and engineering software.

ince 1987 we have been helping manufacturing companies of all types and sizes to reduce design cycles and improve product design and quality. Today the latest CAD technology enables Digital Prototyping - the way to costeffectively validate design ideas and rapidly accelerate product development. Thus driving forward a companyâ&#x20AC;&#x2122;s Growth & Profit. Alta Systems are experts in the application of Autodeskâ&#x20AC;&#x2122;s flagship 3D CAD solution - Autodesk Inventor - the foundation for Digital Prototyping, providing a comprehensive set of design tools for producing, validating, and documenting complete digital prototypes to help

companies visualise, simulate, and analyse how designs from industrial machinery to consumer products will work under real-world conditions before a product or part is ever built. Today all manufacturing companies are operating either directly or in-directly in a competitive global marketplace, and product design, quality and cost are key to their prosperity. With over 20 years experience, Alta Systems always looks to become a long term partner, identifying and clarifying where technology can be of real tangible value to your business, and where product training and support is required. Our open minded approach seeks to uncover your real business

issues, their cost to your business and the benefit and priority of resolving these. If you are looking to move from 2D to 3D CAD, or reviewing your design technology, and how you manage and communicate your design and engineering data, then please contact us:

Published in association with: Alta Systems Ltd Tel: 0844 644 4441 Email: sales@altasystems.co.uk Web: www.altasystems.co.uk

Factory of the month Hadley Group

Established

Edward Machin meets The Hadley Group, a manufacturer of cold-rolled sections whose culture of success is built on innovation, innovation and innovation.

nearly 50 years ago by Phil Hadley Snr, 2010 finds The Hadley Group as one of Europe’s largest privately owned cold-roll forming manufacturers. With annual turnover of £100m and a staff headcount of 500 at sites in France, UAE, Thailand and Germany, Hadley’s UK operations consist of five manufacturing facilities located in and around the Black Country — totaling 450,000 sq ft of global capacity. Its wide product portfolio including internal and external metal framing systems, security fencing, industrial doors and commercial vehicle sections, among others, the company’s reputation has historically been built on supplying cold rolled profiles to the broader construction industry. However, central to Hadley’s corporate strategy is the exploration of adjacent markets to supplement its thriving core business;

Unlocking the value of ideas A

ll businesses seek to differentiate themselves from their competitors through innovation, e.g. in the form of new, improved products and processes. This innovation will give rise to intellectual property (IP). Effective protection and commercial exploitation of IP can preserve a business’s competitive advantage and open up new, high-value opportunities and revenue streams both at home and abroad. Obtaining appropriate protection in the form of registered rights such as patents for new inventions, registered designs for the appearance of new products and registered trade marks for brand names and logos is a key step in an effective IP strategy. Consideration

should be given to obtaining appropriate forms of protection with an appropriate geographical spread at the earliest possible stage of product development and certainly before marketing and sales of the product have begun.

helped it to maintain performance during the downturn.

With the right protection in place, a business has the capability to preserve its spot in the marketplace through appropriate legal action if necessary and to open up additional, potentially high-margin, revenue streams through licensing activities.

HLBBshaw provides a comprehensive range of IP services and can advise you on all aspects of protection, strategy, portfolio management and exploitation to help keep you ahead of your competitors.

As reported in the IP press, Hadley Group has realised the benefits of its IP to increase sales from £40m to over £100m in the last ten years. Moreover, the company’s commitment to IP has

HLBBshaw is proud to be at the forefront, advising and helping Hadley to obtain, protect and exploit its IP.

Published in association with: HLBBshaw Tel: 01992 561 756 Email: mail@hlbbshaw.com

Factory of the month Hadley Group

“Industries that would perhaps not be traditionally identified for cold rolled forming,” says Operations Director, Ben Towe. “As such, we look to both consolidate and diversify into blue and red ocean markets alike, ensuring the broadest application of our industryleading technology.”

One stop shop The scale of such operations has enabled the company to develop its unique pre-production processes and a thriving in-house Academy — with the Group holding rights to more than 150 patents & trademarks as a result. Housing world-class design specialists, engineers and affiliated technicians, as well as operating a robust apprenticeship scheme, the Academy enjoys close ties with a number of local universities. Such has lead Hadley to sponsor PhD students and engineering graduates, two of whom now lead research teams within the facility. “As far as I’m aware,” says Towe, “we are the only globally-trading company within the cold rolled forming sector who can offer a technical development environment of this kind. Indeed, that we have strategically built our in-house facilities to enable cradle to grave manufacturing within the Group itself has resulted in our operating with total self-sufficiency in all that we do.” The gamut of original manufacture aside, such capabilities range from the customer who requires production of an existing product to those — a uPVC windows manufacturer, for example — who work with Hadley’s research and product development team to identify a specific product’s performance characteristics; with the company providing design solutions so as to optimise its performance above and beyond the original brief. Should the Group identify a new location or territory as being strategically important for its continued expansion, only the construction of the new production facility would not be undertaken directly by the Group. From there, all other considerations are dealt with by Hadley — including installation, commission, tooling design, production equipment design, manufacture and maintenance/modification. “As much with the Hadley Group, the fact that we build our own kit represents a particularly attractive

USP,” says Towe. “Being the only company within the UK market that manufactures cold rolled forming machines, we understandably seek to protect that advantage. That said, the company purchases independent machines on occasion, with our experience being that it can prove particularly difficult to locate equipment which operates at anything beyond a basic set of parameters. As a result, when acquiring a standard machine we retrofit it to the industry-leading ‘Hadley standard’ — losing the limitations inherent in one-size-fits-all equipment.”

Factory of the month Hadley Group

Nerves of steel While Towe accepts that virtually anything is achievable at a cost, “By offering a bespoke, in-house service Hadley can price and control the process very much in the customer’s favour.” Perhaps the most striking example of such client-driven manufacture is UltraSTEEL™, the company’s flagship product — designed in response to a list of customer requirements and winner of the Queen’s Award for Innovation in 2006. With approximately one billion meters produced each year, both in house and under license, Hadley’s globally patented method of imparting a dimpled texture onto the surface of cold rolled products creates metal profiles with greater load-bearing capacity and up to 30% increase in yield strength. “Conversely, we can produce virtually any geometric profile to demonstrate the same performance characteristics as a standard product while using less raw material,” he says, “criteria considered crucial for the construction, aerospace and defence sectors, among others.” Equally, a decrease in raw material usage means that a customer’s environmental impact is simultaneously reduced. Indeed, Greener by Design, represents a central tenet of the company’s operations; “An ethos we strive to live by throughout the Hadley Group,” confirms Towe. Recent years

have seen the company invest heavily in increasing its tooling design and manufacture efficiencies — minimising both initial build and lifecycle costs, evidenced ultimately in the customer’s cost per meter. “Again,” says Towe, “such innovation has been very much encouraged by our customer base, and achieved though in-house development of real-time performance, planning, feedback and reporting metrics.” With a remote machine monitor enabling the company to track its efficiencies and production line utilisation, the resulting live production performance data represents

By offering a bespoke, in-house service Hadley can price and control the process very much in the customer’s favour Ben Towe, Operations Director a critical aspect of Hadley’s continuous improvement processes. Similarly, the Group continues to develop a suite of roll design software applications, enabling clients to investigate specific elements of product performance within a stringently controlled testing regime. “Not simply through FEA, but the design of an optimised profile tailored to a customer’s specific requirements,” says Towe. “That said, we recognise that innovative methods of cost reduction do not alone ensure a best in class organisation. With product quality imperative to successful manufacture, in November we launched a business-specific quality delivery system across our product range based on the most salient elements of the AS9100 and SC21 programme.” Having considered a raft of potential models, Hadley identified — and subsequently adopted —the core

The Hadley pre-production process

Hadley Group elements of a Lean manufacturing business model, with the company’s performance data being measured through its Continuous Sustainable Improvement Programme. Such advances are already demonstrating, says Towe, “Greatly positive effects within the Hadley Group but, perhaps more importantly, for our customers.” For example, the company is able to provide advanced production scheduling, performance and stock-holdings information in real time — available on touch screen systems so that operatives can service client requirements without the confusion that often arises with such inquiries.

Such diversification required our implementing a Red Ocean strategy for an environment that we hadn’t operated in before; a change of both culture and mindset Ben Towe, Operations Director

Pick of the bunch “While things largely remain business as usual, at Hadley we actively look to avoid treading water with regard to our operations. In spite of those predicting an overly rough ride

for the sector, we believe that these are hugely exciting times for British manufacturing, in that only the very best will be able to survive and grow in the current economic climate.” “Coupled with the culture of innovation that has directed operations since its inception, the Hadley Group is continually seeking the next opportunity to diversify our portfolio offerings,” says Towe. “Nonetheless, given its standing as the premium product of its type we equally see UltraSTEEL™ as remaining central to our strategy going forward.” The company has historically undertaken big-ticket work in the Middle East region, such projects continuing with a large-scale contract in Dubai. New opportunities continue to present themselves, however, with Hadley recently becoming the first British company to supply steel vine pickets to the Champagne, Burgundy and Chablis regions of France. As with many of its advances, the project was conceived in close collaboration with potential customers, “Resulting in the development of a unique mechanical harvesting product which we are very much excited about,” says Towe. “Ultimately, this diversification required our implementing a red ocean strategy for an environment that we hadn’t operated in before; a change of both culture and mindset,” he says. While such contracts highlight that the company has undoubtedly benefited from the current sterling exchange rate, it has established a number of manufacturing facilities outside the UK in order to provide sustainable, competitive price advantage to customers if —and when — the rates become less favourable. “It is all very well patting ourselves on the back for recent successes,” confirms Towe, “and we are delighted to continue the culture of innovation that has driven the company since its founding. However, because Hadley has the ability to be flexible on where we manufacture, our customers aren’t limited by the fact that they are dealing with a wholly UK-based business. That said, and while our global facilities ensure a balanced spread of production capacity, we remain immensely proud of the fact that a British manufacturer is spearheading the continued advancement of our industry.” end

Modular buildings Premier Interlink (WACO)

Building on

success

TM meets Premier Interlink (Waco UK), a modular buildings manufacturer for whom continuous improvement and staff engagement drives sit at the heart of its achievements. Edward Machin reports.

Producing

over 200 modules — i.e. 7,000m2 — per month at its facility in Brandesburton, Yorkshire, Premier Interlink design and manufacture steel-framed modular buildings for both sale and hire in the custodial, healthcare, education, student accommodation, construction and commercial markets. Formed by the merger of Premier Transline Group and Interlink Building Systems in 2004, Premier Interlink, also known as Waco UK Ltd, is a subsidiary of Waco International Ltd — a £400m turnover group with corporate headquarters in South Africa and a global staff count totaling 4,000. Says Production Director, Chris Walker, “Waco International’s subsidiaries are market leading producers

L.V.Tomlinson and Son Limited L.V.Tomlinson and Son Ltd are specialists in all types of steel fabrication, manufacturing bespoke staircases, ramps, landings, gantries and steel framed buildings for a number of industries.

ased near Driffield, East Yorkshire L.V.TOMLINSON AND SON LTD have been supplying steel fabrications for over 30 years. We are a family owned business and operate a highly skilled and motivated workforce. In todays industrial climate we believe we can offer a competitive service to our clients, many of them we have dealt with over a number of years. From design through to delivery, service and product is our priority and we pride ourselves on our achievements in meeting the

customersâ&#x20AC;&#x2122; needs. We can offer a full installation service to supplement our manufacturing process and our site install teams are available to work nationwide. Our personnel are fully trained, holding relevant certification, enabling us to work on major constructions sites in the public and private sectors. Our manufacturing facility is based near excellent transport links enabling our products to be delivered cost effectively. We are always looking to

expand our client base and welcome any enquiries.

Published in association with: L.V.TOMLINSON AND SON LTD CATWICK LANE BRANDESBURTON DRIFFIELD YO25 8RY

Tel: 01964 542969 Fax: 01964 543431 Email: lvtomlinson@btconnect.com

Modular buildings Premier Interlink (WACO)

of modular structures, formwork and scaffolding solutions in Australia, New Zealand, Southern Africa and Chile. Within the UK, and in addition to our modules for sale, we have a hire fleet of approximately 5,000 units, turnover of £60m and a staff of 200.” Central to Premier Interlink’s position as an industry leading manufacturer is, maintains Mr Walker, its breadth of product portfolio. “Quite simply, we manufacture the most diverse, robust and efficient range of modular structures currently on the market,” he says. “Moreover, the company oversees one of the largest interchangeable hire fleets in the country, utilised by Bovis Lend Lease, Mace, Westfield Shoppingtowns, Stansted Airport and Royal Bank of Scotland, to name but five.” Regarding the former remit, the company’s products include PremierCell, a modular secure prison building which has received Ministry of Justice approval for use in Category B and C regimes and PremierPC, a

steel framed unit for police custody suites and related uses. Clients include West Midlands Police, Trumpington Magistrates Court, the Scottish Prison Service and secure HMP sites throughout the country. PremierOne, the latest addition to the company’s product offering, is an economy class, single storey building currently being used in Wigan Hope School, among others.

By remaining ahead of the competition in our product offerings, we will continue to win work on recommendation, arguably the most objective barometer of our company’s manufacturing strengths Says Chris Walker, “With both ISO9001 and ISO1401 accreditation, Premier Interlink manufacture each building to the highest specifications, meeting Part L2a, DDA, and all sector specific regulations, as well as providing a 40 year guaranteed warranty on our structural and external cladding materials — far exceeding industry standard.” Furthermore, approximately 80% of the company’s construction is done off-site, a fact which is considered

Operational Excellence Since October 2009, Transglobal has undergone radical changes throughout the company, thus enabling it now to be more competitive in its manufacturing processes and in the development of new systems and products that will take Transglobal into the 21st Century. With our constant investment programme we will be able to provide our employees with all new state of the art equipment and training enabling them to maintain the high standards we now operate too.

ith our highly skilled workforce we are able to deliver engineering excellence both in the factory and on site providing our clients with products of superior quality and the promise to deliver on time and to budget. We have extensive experience working with the Home Office and could boldly state that we have undertaken associated works in over 75% of their establishments either in the form of refurbishments or new builds

and will continue to do so in the future. We are currently embarking on a contract with the Dublin City Council providing a number of flood defences on the River Dodder. We have designed the defences in house and will be installing in February this year. With the current environmental changes happening all around, we are finding that enquiries are now on a weekly basis. With all this in mind, our product development team are striving to develop new ideas that will

safe guard the home owner against the risk of flooding. Transglobal Engineering are now committed to provided our clients the right product for the right price at the right time.

Published in association with: tRANSGLOBAL eNGINEERING Tel: 01723 890631 Fax: 01723 891554

Modular buildings Premier Interlink (WACO)

particularly important for the healthcare and education sectors — given that many of Premier Interlink’s projects are undertaken on ‘live’ sites, where installation efficiency is paramount. Indeed, the most popular and most adaptable product in the company’s product portfolio, PremierPlus, has found particular success in catering for the medical market; installing multistorey modular buildings in healthcare facilities including Addenbrooke, Haywood, Stoke, Leicester, Manchester, Norwich and Bristol. Confirms Walker, “We are increasing gaining traction in the healthcare sector, and, pleasingly, are winning the majority of our new business thanks to word of mouth recommendations between NHS trusts. Together with repeat business from individual trusts, it is this willingness of clients to advocate on our behalf which ultimately demonstrates the viability of the Premier Interlink product portfolio and the expertise we have built up over the years.”

Go with the flow… Since 2007, Premier Interlink has undertaken a fundamental transformation of its manufacturing processes, given both a synergy of production between the aforementioned merging companies and a decision to concentrate solely on the production of modular buildings. “As a result, we implemented a flowline-based approach

We manufacture each building to the highest specifications, meeting Part L2a, DDA, and all sector specific regulations, as well as providing a 40 year guarantee warranty on our structural and external cladding materials

to manufacturing,” says Walker, “as well as incorporating work stations to ensure that the development of our new product ranges was done with optimum economy.” Accordingly, the company invested — to the tune of £250,000 — in a portfolio of machinery to effect the mandate, significant crangeage equipment being one uch example.

A first class partner EOS is a leading manufacturer of light weight steel for the European construction industry with a proven track record on profile projects.

ur products range from basic stud and track for facades, to fully assembled panels incorporating boarding, insulation and brackets for rapid installation onsite. Our advanced load bearing system (LBS) enables us to build up to nine storeys in height using only cold rolled steel. We are also a leading provider of factory to factory frames to the modular market and bathroom pod industry. With experience spanning multiple sectors including healthcare, education and residential we are a trusted supplier with a reputation for quality. We use the latest swage edge

technology at our purpose built plant allowing us to design competitive, comprehensive solutions to suit your project and budget. You will receive the full support of our experienced team, providing professional, accredited design services and technical expertise. We pride ourselves on our collaborative approach and will work closely with your team to create the optimum solution. Partnerships are an important part of our business and we are proud to have supported Premier Interlink with design and prototyping services throughout the development of their

product range. They continue to be a valued customer, incorporating EOS products into their modular pods. Our UK sales team, headed by Bernard Gale, would be pleased to discuss your requirements. Call 01325 303030.

Published in association with: EOS Tel: 01325 303030 Fax: 01325 301724 Email: enquiries@eosuk.org Web: www.eosuk.org

Modular buildings Premier Interlink (WACO)

The investment reaped almost immediate benefits. Says Walker: “Coupled with the craneage machinery, and installing state of the art CNC driven overhead routers and bandsaws, we also undertook a considerable investment in moving products around the facility as efficiently as possible.” Moreover, the company sought to minimise the amount of forklift trucks in operation, bringing tugs to move products within the manufacturing areas in their place. By keeping products as close to the ground as possible, says Walker, workplace safety is put at the forefront of the businesses’ remit. Such is evidenced by the company’s winning the British Safety Council’s prestigious ‘International Safety Award’ in 2009, presented to an organisation which demonstrates a clear commitment to health and safety practices. “In addition to investing a significant amount in developing a culture of safe working practices,” says Walker, “the company has focused heavily on product engineering, ensuring that all that we manufacture is done with optimal efficiency and time to market. Critical to this are the continuous improvement and lean principles, such as kaizan and six sigma, currently being undertaken on site.” In taking its first steps on the road to doubling production efficiency since 2007, the company’s management executives gave monthly presentations to the factory floor — selling the message, in other words. However, so keen were staff to contribute to Premier Interlink’s lean journey that idea-generating work groups were convened in each area of the business — a practice of continous improvement which continues to this day. Ultimately, says Walker, the common theme within Premier Interlink is that its staff — be they executives, management or floor operators — do not resist change, and take both cultural and manufacturing advances in their stride. The gains made within the production unit can, in many cases, be directly attributed to the company’s operatives — a fact that, says Walker, “Explicitly highlights the internal autonomy of our organisation.”

Premier Interlink (WACO) Such independence, moreover, extends to the entire Waco family, with all operational decisions for UK manufacture remaining on British shores. While this is particularly liberating, assures Walker, “Our journey of continuous improvement coincided, somewhat fortuitously, with a drive by the international board of directors for similar practices throughout its global businesses.”

Structurally sound As such, and with regard to sustainable manufacturing, the majority of materials used by Premier Interlink are selected from environmentally friendly resources. Indeed, says Walker, “A great number of our clients are multinational corporations, for whom an ethos of environmental protection remains central to their operations. As a result, many enforce policies whereby they only purchase from manufacturers who consider sustainability to be equally as important.” Accordingly, 65%

of Premier Interlink’s waste is recycled, a figure that is regularly monitored by the company’s clients — given their requiring both a dedication to, and investment in, the environment from the organisations they deal with. And so, with a new decade upon us, what does 2010 — and beyond — hold for Chris Walker and Premier Interlink? “We will undoubtedly continue to place great emphasis on our R&D activities,” he says, “as it is a facet of the business which marks us out as a sector leader. Indeed, by remaining ahead of the competition in our product offerings, we will continue to win work on recommendation, arguably the most objective barometer of our company’s manufacturing strengths.” “For example, we are currently producing a concrete flooring option within our modular buildings, which will enable Premier Interlink to advance technology and improve product performance in markets such as laboratories, hospital theatres, plant rooms and police cells. Given that we are a largely product-led company, our immediate future is concerned with ensuring that the Premier Interlink’s offerings are suitable for both current and divergent markets. While we are excellently positioned for 2010, beyond that largely rests on the market’s whims. What can be said, however, is that we will remain at the forefront of developments in our sectors, while continually looking to transition into adjacent markets as and when it is considered appropriate for the business.” end

Gardening equipment Hozelock

Inbloom Like a mature tree that has been nurtured from a solitary seed, gardening equipment maker, Hozelock, has grown from a company with a single product into a blossoming business. With strong product roots that are providing the basis for future expansion, Tim Brown discusses with managing director, Peter Rush, the importance of planning.

Last

year was certainly one to remember for Hozelock. Not only did the company celebrate the passing of a half century since its foundation in 1959, but also received its third consecutive Manufacturing Excellence Award and rounded out the year by claiming this magazineâ&#x20AC;&#x2122;s Manufacturer of Year Award. While clearly such accolades are a testament to the companyâ&#x20AC;&#x2122;s triumphs, it is the hard work of staff and strong managerial preparation behind the scenes that is truly credible. Forward planning choices, in the name of ensuring a sustainable future, have been the key to Hozelockâ&#x20AC;&#x2122;s success in recent years. Perhaps the most notable decision occurred three years ago, when the company chose to consolidate five separate UK factories in to one central hub at Minworth in the West Midlands. However, the company has also undertaken a number of other long-term customers and production-

Gardening equipment Hozelock

focused operational projects. Such developments have not only helped to differentiate the business from its competitors but, moreover, provide Hozelock with a competitive edge.

Customer communication Within the UK, Hozelock has employed a system which engages closely with customers and not only assists the company in maintaining shelf stock, but also minimises excess purchasing. This level of service is a great differentiator, says Rush, especially when compared to foreign competitors. “Being able to manage customer stock and provide them with very high service levels off a shelf is something that Chinese suppliers cannot do. This has been a real area of focus for the business and, from my point of view, is a real area of competitive advantage.”

Hozelock has set up systems so as to monitor, on a daily basis, its key customers’ in-store stock levels, and is able to distribute stock accordingly. By doing so, says Rush, “The company has been able to maintain a shelf availability for its products of greater than 99%. We receive daily reports from our retailers directly and EPOS data which is fed through automatically. This system is great, and has worked absolutely fantastically for us. The reason that that is important is because retailers over the last years have actually taken stock out of the supply chain.” Appreciating retail businesses wish to reduce excess stock, Hozelock has devised a two-tiered approach to satisfy this requirement, providing not only very short delivery lead times, but also personalised delivery. “The whole point,” says Rush, “is that they don’t have to hold loads of stock. We deliver direct to store rather than to a regional distribution centre, and have approximately 1000 major store outlets that we deliver to on a weekly basis. The benefits for them are that they have excellent product availability on the shelf, and it ensures that when a customer goes into the shop, the product is on the shelf. If the product is not on the shelf they will lose the sale and the customer will go elsewhere.”

QAD QAD would like to congratulate Hozelock on their multiple award winning performance at The Manufacturer of the Year Awards 2009.

ozelock has used QAD Enterprise Applications (formerly known as MFG/Pro) since 1994 to provide the capabilities needed to succeed as a world class manufacturer. In early January 2010 Hozelock successfully went live on the latest version of QAD Enterprise Applications at their Minworth headquarters. Why QAD? For over 30 years, manufacturers around the world have come to rely on QAD for our passion for simplicity and our commitment to their business success. From shop-floor automation tools to global enterprise solutions, QAD has become a trusted technology partner, helping reduce inefficiencies and increase productivity for manufacturing companies worldwide. That is because QAD Enterprise Applications are focused and specifically optimised for the six highly competitive manufacturing industries we serve: automotive, consumer products, electronics, food and beverage, industrial products and life sciences. Our Passion. Your Advantage. Our industry focus is a key differentiator for QAD and a key benefit for our customers. It is what enables us to develop global solutions that meet our customers’ business requirements. Here’s what customers have told us they are looking for:

Clarity, to view business processes at the global level and make strategic decisions with reliable information for local operations Agility, to anticipate and react instantly to changing market pressures and customer demands Unity, to form long-term, positive relationships with extended supply chain members that increase your competitive advantage and benefit your bottom line Global manufacturers count on QAD’s understanding of their industries to help them compete in the global market. Now, QAD is leading customers to the next level of manufacturing excellence, with new solutions to boost productivity and new business approaches to ensure long-term success. The Perfect Lean Market QAD’s vision for the global manufacturing market is the Perfect Lean Market. A perfect lean market for manufacturing is a frictionless system, where all information is freely shared in real time, processes are reduced to only value-added tasks and waste is eliminated. Our everyday route to making this vision a reality—our mission—is to be our customers competitive advantage. We strive to do this in many ways: By the very way we do business By evolving the QAD application suite to fully

support global enterprises now and in the future while uniquely maintaining local autonomy as needed By improving customer-service levels through Continuous Customer Engagement By accelerating the innovation of new products By driving costs out of the manufacturing process and supply chain Together with our customers and partners, QAD is making significant contributions to the worldwide manufacturing industry in our pursuit of the perfect lean market. The Power of Simplicity Powered by our passion for simplicity, QAD Enterprise Applications are designed to reduce the complexity within manufacturing operations, while making it easy to modify systems according to changing customer needs and business requirements.

Published in association with: QAD Europe Limited

Waterfront Business Park, Dudley Road, Brierley Hill, West Midlands, DY5 1LX

Tel: 01384 487433 Email: marketing_uk@qad.com Web: www.qad.com

Gardening equipment Hozelock

Blame it on the rain In addition, due to the nature of their business being based outdoors and the seasonal buying habits of their customers, Hozelock has realised the impact that the weather has on its business. Hozelock has been obtaining both short and long term weather forecasts for the last 12 months, and uses the predictions to assist in production scheduling, ordering and staffing. With forecasts proving to have an 80% accuracy, Rush says the insight has been invaluable. “Because we had done a lot of other good work regarding the supply chain, we decided the next thing to do was to look at how we can try and get a better insight in terms of the weather. It is partly for UK manufacturing, but predominantly used to assist us in monitoring our production volumes in Asia due to the longer lead times we experience from there.” “What we have been able to do is actually correlate EPOS data, and therefore purchasing habits from retailers, with the weather. They can quite accurately provide us with a view of what the past data is likely to be. For us, this has been hugely beneficial. We have the forecasts for this summer already, and they will be giving us the forecast soon for going into next winter.”

While the benefits of such an endeavour might seem somewhat fantastical, Rush says the buying habits for their products clearly correlate to the weather. For instance, he says, if it is likely to be a hot summer then products such as spray guns and sprinklers are likely to be popular. In comparison, if it is going to be a cold winter, then garden equipment is likely to become frost damaged and require replacement come spring. In both cases, Rush says Hozelock is able to adjust their production to ensure they will have enough of the required products. In addition to the long term forecasting, a weekly short term forecast is also correlated with retail spending habits

Biological Preparations Ltd T

he current trend away from harsh, aggressive chemical products to non-toxic, eco friendly alternatives shows no sign of coming to an end, BUT... and it is a big but, unless these products are equally effective and competitively priced, the take up by the end user is slow. Biological Preparations Ltd specialises in microbial, enzyme, plant extract and anti-microbial technologies to develop and produce products for the consumer and kitchen/ washrooms sectors that meet these exacting requirements.

Operating from Cardiff, we All products are manufactured offer a full turnkey service to ISO9001:2008 standards in a from product development to custom built production facility. formulation to manufacturing to packing and delivery or any Biological Preparations is proud element of that service. With a to be part of the Hozelock fully equipped modern laboratory success story. staffed by an innovative team of graduates and PhDâ&#x20AC;&#x2122;s with many years experience Published in association with: in this field, Biological Biological Preparations Preparations can tailor Tel: these technologies to 029 2067 4090 meet the most stringent Email: customer demands and general@biologicalpreparations.com offers remarkably quick Web: turn round times www.biologicalpreparations.com if required.

Gardening equipment Hozelock

Hozelock Care at a glance Location

Midpoint Park, Minworth, Sutton Coldfield, West Midlands

Contact

www.hozelock.com

Sector

Watering and gardening equipment

Employees

300

History

Founded in 1959 on the back of the invention of the first plastic hose connector. The company has always tended to be privately owned including a period when it was on the FTSE during the mid-1990s. In 2000, it acquired a company called Tricoflex in France which allowed Hozelock to become a genuine major player in hosepiping and also expanded the business further into Europe. Hose lock is currently owned by CVC capital partners which are based in London and have had ownership for close to 10 years.

Key products

Hose reels, hose pipes, spray guns, garden sprinklers, hose fittings, sprayers, water pumps

Key geographical UK, continental Europe including Russia, Australia, New Zealand, South Africa markets and allows Hozelock to adjust its temporary staff volumes. “The short term forecast allows us to decide how many temporary staff we need on any given week,” says Rush. “This, in turn, allows us to have a flexible manufacturing output.” Regardless of the fluctuations in weather patterns, the nature of Hozelock’s business is very seasonal. Thus, to combat the substantial differences in production requirements, the company has engineered fully flexible assembly lines which can be operated at a minimum rate using just four staff or at peak times by up to 20. “Our turnover in this business moves from being a £10m business in the winter to being the equivalent of a £150m business during the peak season,” says Rush. “This flexibility on our manufacturing lines and the ability of bringing temporary staff into the business is absolutely fundamental to our success. Another reason we have done so well in managing our stock, our output and our efficiencies is that we have really perfected this flexibility.”

Secure investments Of course, maintaining and improving operating efficiency is reliant not just on the operators, but on the machinery and product innovation. Hozelock has ensured that this aspect of their operation is consistently performing by careful and consistent investment in infrastructure. The company’s most recent purchase of three new Demag injection moulding machines at a cost of £250,000 is an example of this

investment. “These are more efficient and have better cycle times. Continued investment in current equipment is something we are always looking to do,” says Rush. Working hand in hand with the company’s machinery investments is its desire to continue to cement their competitive advantage. This is demonstrated by the company’s work to improve its capacity for hose production. “We want to continually develop faster lines,” he says.

More green shoots The ingenuity involved in the operational management of Hozelock is definitely inspiring. While it is functional and sensible, it is also a slightly out of the box approach to ensuring continued success. There is no denying, however, the correlation between the company’s approach to planning and its securing of its own longevity. Clearly not one to rest on its laurels, according to Rush the key areas for the business going forward will be continued investment and consumer driven innovation. The development of adjacent product categories is already in place with the release this year of the company’s first pressure washers and further exciting developments for this innovative company are undoubtedly still to come. With the focus clearly on steering the company in the direction of continued accomplishment and a plan in place by which to achieve it, Hozelock is set for continued growth. end

Packaging Linpac Packaging

Packing a punch

Fresh from its success at The Manufacturer Awards 2009, Edward Machin talks to LINPAC Packaging’s Chris Wright about winning hearts and minds in an increasingly competitive market

Linpac

Packaging produces plastic packaging for the retail, foodservice, bakery, and fruit and produce sectors. With a product range of more than 10,000 items, from trays and films to disposable tableware, the company supplies to Aldi, Bakkover Pizza, Carrefour, Hilton Meats, Morrisons, and The Greenery, to name but a fraction of its client roster. The St Helens-based manufacturer is a subsidiary of Linpac — founded in 1959 as Lincolnshire Packaging and commanding annual revenues of £1.1bn, with a staff of 7,500 based at 83 locations across 29 countries.

And the winner is… On a wet and windy night in November 2009, a team from Linpac took to the stage of The Tower Hotel, London, to accept The Manufacturer’s Operations & Maintenance Award 2009 from Formula 1 racing legend, Sir Jackie Stewart. Somewhat uniquely, however, the Linpac contingent was drawn largely from the company’s manufacturing area. “These were the very people who were engaged in the continuous improvement advances that LINPAC was being recognised for,” says Chris Wright, the site’s operations manager.

“It goes without saying that the wider industry recognition is very much welcomed. More than that, though, it gave those from the manufacturing area an opportunity to see a different side of the business and reinforced that we are not simply doing certain things because the site manager says so — there is a quantifiable end-game, in other words.” Conscious of the fact that only a certain number of employees could attend the black tie ceremony, Linpac laid on a buffet lunch for all those who didn’t make the trip to the capital. “Nonetheless, at both meals the thing that many of us commented on was the sense of pride that had rippled through the company,” says Wright, “and to see that within our colleagues and friends was particularly pleasing.” With Linpac’s winning TM’s Operations & Maintenance award, it is unsurprising to learn that such a remit represents a central — and wildly successful — aspect of the business. For example, the right first time of materials embodies a culture within Linpac of, says Wright, “Don’t work harder; work smarter. If companies are manufacturing a product simply to discard it, the emphasis going forward must be placed on continuous improvement — something we identified very early on, making a reduction of 50% in our non right first time process during 2009.” At Linpac such advancements are often driven by those from the manufacturing area identifying areas for improvement, running their own action teams and

bottoming out potential snags. While the strategic vision is conceived initially by management, “We create an enabling environment throughout the organisation, giving operatives a great deal of autonomy and the capacity to control their destiny,” says Wright. After all, “These men and women are the experts — the ones who see more than anyone else how smoothly things are running on the ground. We simply give them the tools and environment in which to thrive.” And thrive they do, with increased morale and motivation among Linpac’s empowered workforce leading to a year-on-year drop in absence rates. “I think that employees, regardless of position, often get caught up in the hamster wheel effect: head down, never really taking stock,” says Wright. “While I’d like to think that it isn’t the case at Linpac, our recent award certainly gave us the opportunity to sit back and reflect on the fact that we are on the right path and, importantly, that others think so too.”

Intriguingly, continuous improvement drives from the manufacturing area aren’t — on the face of it, at any rate — driven solely by a need to reduce the bottom line. Waste not, want not In conjunction with its focus on process efficiency, Linpac has a drive towards automating its manufacturing, wherever possible. We have two main areas of focus in this respect, says Wright. The first relates to its front-end processes, where the company operates a structured TPM Asset Care programme to improve the unplanned downtime of its bottleneck; significantly increasing output volume in the process. “We recently introduced a scheme to ensure that on each shift there will be an Asset Care Champion — a machine operative who has undergone workshops and related training to become highly skilled in their understanding of asset care, thus driving our OEE to unprecedented levels.” Continually seeking to drive its OEE performance, in 2008 OEE

Packaging Linpac Packaging

improved by 16%. The target for 2010 is a further 15%, and will be achieved through increasing availability, reducing unplanned downtime and reducing manufacturing waste. The second aspect of the company’s efficiency drive relates to its end processes, a primarily low-value adding activity, says Wright. Through the use of automation, productivity has been increased and enables operators to focus on problem solving as opposed to carrying out the repetitive manual tasks. Central to this process is the upskilling of Linpac’s operatives, given the increased level of automated manufacture that is required. “As with all that we do, and given that those running the machines are our eyes and ears, there will be extensive training for operatives across the organisation. More than that, however, they will become an integral part of the process for winning hearts and minds, visiting suppliers and helping effect the allimportant buy-in,” says Wright. Designed to assist across the gamut of Linpac’s operational advancements, the company implemented a real time data collection system in 2009 — whereby performance data is input at the end of each production line and action teams are charged with analysing those aspects of operation which are driving improvements across the business. Thanks to large monitors placed throughout the floor, staff can keep abreast of all production successes, further heightening the sense that Linpac is built from its employees up. “With any fundamental change in operational thinking, you get the motivated minority to begin with,” says Wright, “and the mass waiting to see which way things go. Once the momentum swings in your favour, however, the real advances can begin.” Intriguingly, continuous improvement drives from the manufacturing area aren’t — on the face of it, at any rate — driven solely by a need to reduce the bottom line. Confirms Wright, “I don’t necessarily need to see large improvements; simply identify what demotivates your team and seek to remedy it. That said, if the issues affecting efficiency are removed it will almost certainly have a positive effect on an organisation’s financial health. Linpac, for one, can attest to that.”

Tomorrow never knows While working on a plethora of process-related advancements, Wright highlights the company’s safety drive as representing a particularly important aspect of its future strategy. “We have made a 60% reduction in work-related accidents in recent years, and expect to achieve zero injuries in the very near future,” he says. For those imagining lost limbs, or worse, the injuries — if, indeed, we can call them that — in the last 6 months have been a minor bump and a papercut. “As trivial as it may seem, every accident is put through a seven step problem solving exercise to ensure that we develop a solution which means that it won’t happen again,” says Wright. Indeed, the company is breaking internal records for time elapsed since its last lost time accident — currently at 385 days and counting.

These men and women are the experts — the ones who see more than anyone else how smoothly things are running on the ground. We simply give them the tools and environment in which to thrive Chris Wright, operations manager, Linpac Packaging

Given Linpac’s course towards EBITDA growth year-onyear, customer liaison management is equally treated with the company’s fastidious attention to detail. Such is evidenced by the fact that it has maintained a 30% reduction in queries or complaints, no matter how small, since 2007 Should a client express concerns, a team — including those on our production lines — from the company will visit their facilities and, once back in St Helens, work on finding the most desirable solution to any given issue. Rather than employees going about their business with little tangible appreciation for the end user, such policies have, confirms Wright, “Cemented a real feeling of both ownership and accountability within the operatives. It very much personalises the work, to the point where those on the product lines often independently look to offer suggestions for furtherment of our business.” “We are all about employee engagement throughout the organisation, while using LPOS (Linpac Operation System) to drive the company ever closer to world class performance. While very much moving in the right direction, we are loath to think that we cannot improve a little every day” — the Linpac ethos in a nutshell. “I am immensely proud of the fact that we have nurtured a culture of people — from the boardroom to operational area — who aren’t afraid to challenge the status quo in all that the company does, because what is good for today may not be good enough tomorrow,” says Wright. “And tomorrow, ultimately, is a challenge we look to embrace with both hands.” end

MACA Engineering Known for its engineering flexibility, MACA ENGINEERING is one of the most dynamic companies in the manufacture of continuous rotary motion high speed machines for the production of aluminium closures, for assembling plastic and/or aluminium closures and for cutting/slitting plastic caps. MACA ENGINEERING is proud to have among its many valued customers also United Closures and Plastics Ltd whom it has been working with and supplying its equipment since 1999 on a mutual co-operation based relationship. One key strength of MACA ENGINEERING is the ability to design custom solutions for its customers, making the production of the most complex closures possible with high performance, reliable and completely automated machines. MACA ENGINEERING is organised in order to internally take care of all production stages, from design to assembly. This means the company

manufactures itself the most part of the items composing the machines, granting the total control of quality, performances and after sales service. Today, MACA ENGINEERING is one of the world’s most prestigious names in engineering. This has been achieved by true engineering passion, a passion that pervades the entire company, and by an advanced ability to interpret customers’ needs. By accepting the toughest challenges, and confidently taking on the most complex projects, MACA ENGINEERING has built up an excellent reputation and has won the faith and trust of the world’s top cap manufacturers.

To find out more about MACA ENGINEERING go to www.macaengineering.com

Published in association with: MACA ENGINEERING srl Tel: +39 0434 919661 Fax: +39 0434 919884 Email: trading@macaengineering.com Web: www.macaengineering.com

Packaging

United Closures and Plastics

Closure on Closures The demand for perfection is intrinsic within the alcoholic spirits industry. Everything from the taste to the appearance and functionality of the pack must be faultless. Tim Brown talks to Fiona Reith, Key Account Director at United Closures and Plastics, about providing drinks manufacturers with innovative design and value added products.

United

Closures and Plastics (UCP) is part of the Global Closure Systems (GCS) group, which was formed nearly five years ago. UCP, however, has a much longer history as a provider of caps, or closures as they are referred to in the industry, to both the drinks and pharmaceutical industries. Based in Scotland, the company has been operating on the same site for 60 years and due to its longevity, UCP has constructed a very well respected brand name. The company’s long history of closure manufacture has ensured it has developed robust working relationships with an array of different customers. Its capacity for satisfaction —regardless of a client’s size — is evident in the company’s order books, which encompass both local and regional brand owners as well as the global top ten drinks manufacturers such as Pernod Ricard, Bacardi and Diageo. The company has a number of product specialisations, the primary of which is metal and plastics closures and incorporating tamper proofing mechanisms for use on alcohol spirit bottles. The secondary is PET bottles again for wines and spirits which, for example, would be found on a plane ,in a hotel room or increasingly in retail outlets.

Protecting the customer The company’s current signature product is called a nonrefillablepilfer proof closure (NRPP). It is an aluminium screw

United Closures and Plastics cap which features an added security feature or features to decrease the likelihood of a product being tampered with or counterfeited. “We are getting known for specialising in security closures,” says Reith, “which are a little bit more advanced than just simply an aluminium screw cap. These go on to products which are going to retail in sensitive markets such as China, India, Turkey or Mexico, where counterfeiting and refilling is prevalent.” UCP has developed solutions that minimise the risk to brands in a number of ways. The most obvious, and common, is a mechanism known as non-refillability which, exactly as the name suggests, prevents would-be brand pirates from refilling a product with an inferior alcohol. This is achieved through the use of a valve in the top of the bottle which prevents it from being easily refilled. “It can’t be prevented entirely, but we are able to make it difficult,” says Reith. “We consider that we are at the high end of that market and we make the most secure valve possible. That is our niche, if you like.” The company also incorporates other mechanisms to demonstrate authenticity, to both consumers and overseas sales representatives, and indicate whether a product has been compromised. Tamper evidence features, are designed so that it is very clear if a product has been interfered with. The company can also incorporate a number of different authentication techniques to assist with this, and routinely uses anti-counterfeiting technologies used in currency production or computer software protection. The production of the metal screw caps involves the printing of high grade aluminium sheet which is cut in to strips and then punched in to caps. If a premium finish is required, the caps can be decorated further and then have the security valve inserted before being ready for application. The valve and cap will then travel to the customer and be fitted on to bottles at a rate of up to 500 bottles per minute. Each closure is rolled on to the glass on the customers’ line so that rather than buying a screw cap which the thread already on it, the thread is created as it is fitted to the customer’s pack.

New developments While the traditional NRPP design has proved very successful, and with

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customer tending to look for improved filling efficiency, UCP has developed a new product called Orchid. Instead of rolling the closure on to the bottle, the security closure is “snapped” on to the bottle. Reith says that the new closure truly combines the company’s metal closure knowledge with its valve knowledge. “We have invested several million pounds in a brand new cell to make this closure and we’ve done that on the back of a project with Pernod Ricard. A certain amount of the capacity is therefore already committed to them, but the product is available to other customers as well. We invested in a number of injection moulding machines and tools to manufacture the plastic parts that make up the valve. We also invested in tooling to make up the metal shell piece and a impressive Italian assembly machine which puts all the parts together at high speed.”

UCP at a glance Location

1 Steuart Road, Bridge of Allan, Stirlingshire

Contact

www.ucplimited.com

Sector

Packaging – closures

Turnover

€40m (GCS €800m)

Employees

265 (GCS 3500)

Key markets

UK, Ireland, US, Canada, Mexico and Scandinavia.

Market share

Over 50% in the UK and Ireland.

Key product

Non refillable pilfer proof closure (NRPP) which are aluminium security closures for the alcohol industry.

The company started supplying initial launch quantities of the product in October, and feedback for the new closure has already proved very positive. “We delivered the project on time, within budget and we have a lot of interest from other drinks companies now,” says Reith. According to UCP research, increasingly drinks manufacturers prefer to use a design that snaps on to the glass because it is easier to apply at higher speeds. While the Orchid is a snap on closure, it is designed to also encompass UCP’s high-end valve differentiating it from other snap-on closure offerings. “It is more efficient for the customers and still has a very secure valve on it. It also has an irreversible opening, so the tamper evidence is very high on it as well. There are a number of mechanisms and functions within the closure that demonstrate if it has been tampered with or if it has already been opened and the consumer would be able to see that.” UCP intends to further expand their position in the security closure market through the continued provision of high quality products, excellent service and continued design innovation with their global customer base. Looking forward, the company is hoping to further enhance its production processes through efficiency improving measures while simultaneously decreasing their environmental impact. Exceeding customer expectations through this continued development is sure to impress meaning the future for UCP is sure to remain bright. end

Construction Alumet Systems

blast

Having a

With an overflowing trophy cabinet in recognition of its full façade building solutions, Alumet Systems have recently introduced a walling product designed to withstand the effects of improvised explosive devices. Edward Machin reports.

Established

in 1993, Warwickshirebased Alumet Systems design, manufacture and install award-winning solutions for the complete building envelope market — including curtain walling; cladding; windows; louvre systems; solar shading; permanent access facilities; aftercare; and maintenance. Having developed strategic alliances with a who’s who of the UK construction industry, the company works in partnership with Taylor Woodrow / Vinci (GOLD Strategic Alliance), Kier Group (Key Partner), BAM Construction (Category 1 PEP Status), Willmott Dixon, Miller Construction and Lovell Partnerships, among others. Says the company’s director of sales & marketing, Dean Walton, “Whereas the majority of our competitors provide only the windows or curtain walling for any given project, we are additionally able to provide the cradle, gantries, solar shading and louvres; the complete façade of the building, in other words.”

And the winner is… Arguably the most striking aspect of Alumet’s business relates to the sheer number of industry accolades the company has won in recent years. 2009 alone, for example, saw Alumet receive TM’s Aerospace and Defence

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Construction Alumet Systems

Manufacturer of the Year; The Queen’s Award for Enterprise in recognition of the company’s pioneering ABLE Façade System; the Innovation Through Construction Technology and SubContractor of the Year Awards at the Builder & Engineer Awards; Installer of the Year at the Glazing Industry Awards; Regional Winner at the Coventry & Warwickshire Chambers of Commerce Awards; Midlands Excellence Award for Innovation; and New Product of the Year at the Growing Business Awards. Ultimately, says Walton, “These accolades highlight the degree to which Alumet is driven by an ethos of innovation in all that we do. Given that as a company we look to offer a one stop shop, so to speak, we are continually diversifying our product ranges, services, manufacturing divisions and processes.” Regarding the latter, a 42,000 sq ft fabrication unit opened in 2008 by HRH the Duke of Kent represents the latest addition to Alumet’s state-ofthe-art production facilities — enabling all unitised glazing solutions (including the ABLE system) to be manufactured and assembled in factory conditions. “The importance we place on our machinery is,” confirms Walton, “central to the company’s successes. Alumet’s production facilities are largely automated, with CNC and Emmegi Comet machining centres ensuring industry-leading levels of production accuracy in all that we do.”

Divisions Central to Alumet’s success is its continual willingness to diversify. Coupled with its traditional envelope solutions, therefore, the company rigorously pursues a strategy of diversification — Avon Solar Control, an external shading device to control thermal heat gain and direct levels of light within a building, being one such example. “With environmental considerations becoming ever more central to the construction industry, as well as vastly reducing energy costs, our award-winning Solar Control systems will undoubtedly represent a fundamental part of the company’s future,” says Walton. “Similarly, we spotted an opportunity for our permanent access solutions to represent an equally forward-thinking

feature of the Alumet portfolio. If you consider that the gantries, window cleaning cradles and mansafe systems of older structures need to be maintained every six months, it is a market with considerable potential.” Closely associated with such a remit are Alumet’s maintenance and refurbishment services. During, and even prior to the recession, it became apparent that structures built in the 1960s — be they commercial or residential — we no longer being demolished. The installation of new windows, doors, rainscreen cladding and balconies was required instead, with tenants often remaining in their properties during the works. Accordingly, it remains imperative that Alumet ensure both occupants’ safety and comfort. Says Walton, “A tenant liaison officer for each property ensures minimal disruption before, during and after work is carried out. This is particularly important aspect of the service, given that we are winning an increasing number of full building regeneration contracts — in West Bromwich, Sheffield, Birmingham and Winchester, to name but four.”

Bomb systems Most impressively, and spearheading the company’s drive into groundbreaking, as yet untapped markets, is its division charged with manufacturing solutions for ‘at risk’ buildings. Entitled the ABLE Façade System (AFS), Alumet’s latest design is a lightweight walling solution, structurally enhanced to withstand the effects of an improvised explosive device — for use in airports, MoD installations, embassies, banks, police stations, corporate headquarters, law courts or any areas of mass congregation. Moreover, as a counter terrorist measure the AFS provides an alternative method of construction to heavy weight reinforced concrete and enhanced traditional on-site construction methods which, says Walton, “turns buildings into ugly bunkers.” Securing a £6.2m contract with the MoD to protect undisclosed sites in the Home Counties confirmed Alumet’s initial suspicions; namely that it had a unique, industrydefining product on its hands. “Because we transport the system to site in full units and simply fix it to prepared brackets on the superstructure,” says Walton, “overall construction programmes are significantly reduced, thus saving clients both time and money.” In spite of a seemingly effortless installation process, the ABLE façade represents a deceptively robust walling solution — having been subjected to a 220lb bomb blast, 82ft away, the system outperformed MoD and Home Office requirements by 20%. Given that the AFS is believed to be the UK’s only pre-fabricated, blast resistant off-site constructed walling system, “these are greatly exciting times for all at Alumet”, says Walton. “Strange as it may sound,” he concludes, “in many ways building construction is similar to the fashion industry, in that design trends and architectural requirements are rarely static. Coupled with our traditional, best of breed product suite and the AFS, therefore, the company will continue to stay one step ahead of the curve — ensuring that Alumet’s building envelope offerings remain current, award-winning and, above all, a market leader in our sectors.” end

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Shelve it

With over 60 years experience in the design, manufacture and installation of storage and handling systems, UK-based LINPAC Storage Systems has clients ranging from SMEs through to the largest multi-national. Tim Brown talks to operations manager, Michael Rudniak, about maintaining advantage through improvement

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Maintaining

strong working relationships with some of the biggest commercial companies in the world is no mean task, especially when providing a product absolutely integral to their operation. Through the provision of high-quality products and excellent service, Linpac Storage System has successfully nurtured relationships with the likes of Amazon, Dunlop-Goodyear, Laddaw, P&O Ferries, Matalan, Marks & Spencer, Argos and TNT — not to mention a raft of smaller companies. “We are extremely proud of the professional service we deliver to all our customers, regardless of their size,” says Rudniack, who maintains it is the copany’s UK base that truly assists Linpac’s ability to satisfy client needs. “When you’re working to tight time schedules, with downtime being critical, the last thing you need is delays due to products being manufactured abroad. At Linpac we produce everything here in the UK, and with the manufacturing and management all situated at our Milton Keynes headquarters it ensures the entire team works in unison to deliver jobs on time and in budget.”

Storage systems Linpac Storage Systems

A short chain of command, backed by experienced designers, structural engineers and a state of the art manufacturing facility, gives the company the flexibility to provide tailored storage solutions in very short time frames. “Our UK manufacturing facility at Milton Keynes gives us a distinct advantage in the marketplace; from here we produce the broad range of racking and shelving products on offer,” says Rudniack. “Quality, service and attention to detail are central to our business philosophy.”

Facility improvements Linpac Storage Systems’ state of the art manufacturing infrastructure at Milton Keynes incorporates steel forming presses, specialist steel rolling mills, automatic welding machines and one of the largest epoxy polyester coating paint lines in Europe. Ensuring a high-level of technological advancement, the company has engaged in important recent infrastructure investments to help improve production efficiency. Over the last five years Linpac has invested heavily in new plants, helping output increase ten fold

tools & techniques. Continuous improvement techniques including 5S, TBM, TPM, SPC have been implemented over the last 18 months.

Hand in hand with the environment The results of these implementations can be easily recognised within the factory, none more obvious than in the environmental improvements that the company has set in place. While efficiency and productivity have been significant driving factors for improvement implementation, environmental protection has also played an important role. According to Rudniak, Linpac Storage Systems is committed to protecting and enhancing the environment as a fundamental principle of the company’s business. “We believe that the company should make every appropriate effort to avoid compromising future generations’ ability to sustain their needs,” he says.

Recent investments include: A new bracing line – this has allowed the company to produce both horizontal and diagonal braces on the one line, while simultaneously increasing productivity by 50%. An automatic welder – can weld standard beams with an average of 250 beams per hour, five times quicker than manual welding while producing a high quality automated finish. A rolling mill – specialising in rolling, forming and boxing the two-part boxed section beam. To assist the company with further advancements, Linpac has employed its own lean management and continual improvement programme — known within the company as LPOS. Yearly strategies are set up for each department, with goals, objectives and measures reviewed monthly. The LPOS programme has played a major role in ensuring the organisation survived the recession by operating leanly and keeping cost to a minimum. As part of the program, all operators are responsible for quality, and regularly raise issues via meetings, which are acted upon by using the different

The company is implementing activities throughout its operations to reduce the use of materials and energy, increase recycling and minimise emissions and wastes to air, water and soil. Management also takes the environment into account when updating operation practices, ensuring the company employs any available technological advancements which may assist in reducing its environmental impact. Linpac also takes steps to ensure it is aware of any new relevant understandings in terms of environmental science. “LPOS has also affected our energy and waste efficiencies, with questions raised and actions taken, which have resulted in current improvements,” says Rudniak. “Of all the improvements carried last year resulting in savings, benefits and an improved working environment, the one considered the main success was the SMED exercise carried out on our main Rolling Mill, which reduced the change over times from 4 to 1.5 hours and resulted in improved Lead-times, planning & productivity.”

Other improvements have included: The reduction of the four stage pre-treatment process to a three stage process saving chemical, gas and electricity. Decreased powder usage without affecting quality levels. Reduced oven temperatures.

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Linpac Storage Systems

Linpac Storage at a glance Location

Garamonde Drive, Wymbush, Milton Keynes, Buckinghamshire

Contact

www.linpacstorage.com

Sector

Racking and shelving solutions

Turnover

£16m

History

Linpac Storage Systems based in Milton Keynes has over 50 years experience in the Pallet Racking industry, which originally began in 1959 under the name of Acrow. After an expansion programme, the company moved to Milton Keynes and changed names to Apex Storage Systems. The company then became part of the Linpac group in 1997 and has operated for the last 13 years under the Linpac umbrella.

Planned future investment The success achieved by Linpac Storage Systems’ existing improvement programmes has encouraged plans for further changes. These include: the implementation of quick colour change powder paint booths for existing lines, which it is estimated will reduce change over times from 2 hours to 10mins; and an improvement in powder transfer efficiency, which would reduce powder costs by an estimated 40%. The 8963_gemaquarterad 08:49 its Page 1 company also 25/2/10 plans to increase

export market, and is this year aiming to sell up to 25% of its products in to overseas markets. Linpac Storage Systems products could be considered the vertebrae supporting the operational nervous system at many noteworthy companies. Its popularity is largely due to the high quality of its offerings, which is ensured through the consistent implementation of production improvement techniques. It’s achievements through said improvements also greatly assist the company to remain competitive both in the UK and internationally. Moving forward, continued production investments will undoubtedly further improve the company’s competitive advantage and ensure its ongoing successes. end

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Mining applications ATB Morley

Coal’s the goal Increasing turnover by 150% is the stuff of business dreams, regardless of sector. However, for mining applications manufacturer, ATB Morley, the reality is proving to be more enjoyable still. Edward Machin reports.

Founded

as the Morley Electrical Engineering Company Ltd in 1897, ATB Morley has undergone a host of changes since its inception as a manufacturer of heavy-duty electric motors. Owned by the Summerscales family and based in Stanningley, Leeds, the business was sold in 1972 to global conglomerate the Bullough Group. In 2000, a buyout by its management team saw the company renamed Morley Electric Motors, with the purchase part-funded by Lloyds Development Capital. Having grown at a considerable pace, Morley was acquired by its present owner, ATB Austria Antriebstechnik AG — an international group with corporate headquarters in Vienna, Austria, and primarily focused on the production of electrical motors and drive systems. ATB is owned by ATEC industries, also headquartered and market-listed in Vienna. ATB Laurence Scott in Norwich is part of the same umbrella organisation, having been rescued from administration by ATB Morley in 2007 and brought into the group. ATB Morley manufacture bespoke, high-voltage electric motors. The majority — i.e. 70-80% — are for underground coal mining applications, largely to territories other than the UK. As such, 80% of turnover is export, with approximately 40% supplied to China, 20% to Australia, 10% to Russia/ the US, and varying amounts to Europe, Indonesia, Mexico and Turkey — with the remainder staying within Britain. “Our current situation is very different from the late 80s, during which we manufactured motors predominantly for the UK coal industry,” says managing director, Ian Lomax. “Indeed, the

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decline of the UK coal industry should have been the end of the road for Morley. However, the management team at that time decided to take the coal mining expertise to the global market, the result being a rapid transition into those territories where coal continues to be mined.” The importance of coal as a global resource should not be understated: it provides 40% of global energy and 70% of global steel production. The remainder of motors manufactured by ATB Morley are typically destined for special purpose applications. These include air compressors, ministry of defence, autoclaves, polyethylene stirrer motors and ‘retrofit’ products which the original manufacturer either doesn’t produce or, as a company, no longer exists. “We will manufacture a motor to precisely replicate the original in capacity, while typically offering a small frame size,” says Lomax. “However, in doing so we ensure that motors are manufactured to guarantee as little disruption as physically possible — often a principal concern for our customers, given the logistical nightmare than can ensue in such installations.”

Growing pains? Not here… Arguably the most remarkable aspect of ATB Morley’s recent endevours is the degree to which its turnover has ballooned in a relatively short period; from £7m in 2002 to £18.5m in 2009. Such enviable growth can be partly attributed to the company’s continuing to aggressively chase sales in both existing and newer markets. “A particularly pleasing aspect of our tradition as an industry leader is the fact that our motors have a reputation

for both reliability and the history of innovation that comes with the product. In the coal mining industry, Morley is a well known brand,” says Lomax. Continuous innovation is a key driver behind the company’s success. While perhaps surprising to some, coal mining technology is developing at almost unprecedented levels year on year, with customers demanding higher output from a smaller envelope in their products. To cater for such requirements, in 2008 ATB Morley designed the first 11kV motor designed to run in underground mining applications. Similarly, Lomax confirms that the company is fresh from the sale of the world’s largest shearer-based, 1000KW motor, with an 1100KW model currently in the advanced design stage. “In general, we do not design a new product and then take it to the market to see if there is a demand” he says. “Quite the opposite, in fact. Customers approach the company with a design brief, which is accordingly designed and manufactured across ATB Morley’s facilities in Leeds, Stockport and Bradford.”

Innovation stations Unsurprisingly, the company’s recent growth has required a steady stream of production improvements. Having purchased Decko Maher and Emco machining centres in both 2008 and 2009, the current year sees ATB Morley with a budget of £700,000 to refurbish and/or replace a number of the company’s older production tools. For example, says Lomax, “Our shot blasting facility is set for a facelift, which is expected to cost in the region of £100,000. Similarly, we are due to upgrade the remainder of our welding equipment.” Such investments are intended to ensure that the company can keep up with the pace of production while giving it increased capacities — setting the foundations for the future, in others words. While Lomax expects Morley to maintain its respectable year on year growth going forward, he concedes that 2010 is likely to represent a slower year for the sector in general. That said, although 2009 saw an absence of large capital projects being launched, the wider market is nonetheless beginning to see a cautious pick-up.

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Mining applications ATB Morley

Royal approval Coupled with the aforementioned turnover spike, ATB Morley won the Queen’s Award for Enterprise: International Trade in 2009 for doubling its exports over the three previous years. “Being presented with the highest accolade a company can win in UK business was obviously fantastic for all at ATB Morley,” says Lomax. “Indeed, and in spite of our global reach, because of our size we very much maintain a family feel to the business. Moreover, since the company’s inception, and remaining through each transition in our ownership, is a pronounced ‘Morley culture’ which directs all that we do,” he says. The company defines itself as customer intimate, building on its reputation and experience in coal mining — but also as opportunistic, and typically prepared to pursue any opportunity in spite of the technical challenges involved. Recent examples include the 11kV motor and the largest shear motor but equally, at the other end of the scale, low power high voltage where a 30kW motor is supplied with 3.3kV. One difficulty in this approach, however, is in occasionally finding new markets, since the bespoke, purposebuilt approach can be applied to any

application. As a result, says Lomax, “One of our targets is to make our capabilities more widely known, such that it would be unthinkable that any product could be envisaged without considering ATB Morley.” Central to ensuring an optimum environment for bespoke manufacture is the Morley culture of continuous improvement, a programme largely driven by its rigorous internal quality statistics. To effect such efficiency standards, the company tasked six teams to consider each aspect of the business in turn — customer interface and in-house production techniques, for example — and identify areas for improvement, where necessary. “The important point here is to avoid complacency; no markets or products standstill,” says Lomax. “Similarly, while we must never lose sight of our roots in the mining industry and its importance to our operations,” he says, “a particular aspect of the company’s strategy was in seeking to avoid complete reliance on it, and thus missing opportunities in adjacent sectors.” With a rebalance of 10% in its orderbook — from 85-75% in favour of mining — ATB Morley has accordingly explored a range of niche markets in which to introduce its motors; projects for the MoD and in renewable power being two such cases. Somewhat serendipitously, however, the growth in non-mining sectors has seen a concurrent increase in its traditional markets, demonstrating that, says Lomax, “After a century’s production of coal mining applications we are finding that we can roll this experience out to other markets. Often specifiers seem surprised — although delighted — to find that businesses like ATB Morley continue to exist in the UK. They do so by working in niche markets, being prepared to innovate and offering high levels of customer support.” end

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Going with the flow

The Manufacturer finds Hull based valve manufacturer Broady in full control

1902, a coppersmith named William Broady began making a living for himself by installing and repairing marine pipes on the docks in his native Kingston-upon-Hull. Some thirty years later, the company he gave his name to had grown into a manufacturer of pressure release and safety valves for the trawler ships serving what was a booming North Sea cargo market. Now, over 100 years since William Broady started out, the company has established a fine reputation for producing the aforementioned valves for a wide range of purposes, to custom spec, and to the highest quality. However, the North Sea mostly serves a new mistress these days and, accordingly, that mistress is also one of Broadyâ&#x20AC;&#x2122;s; the oil and gas industry sits alongside the chemical, petrochemical, water & waste, fire protection, paper & pulp, food and pharmaceutical industries in the extensive range of sectors the company serves.

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And while Broady is still based in Hull, its market these days is far from refined to the North East of England. It now exports its relief, safety relief, pressure reducing, pilot, and fire and gas blanketing valves to around 50 countries worldwide. Since 1938, Broady has also been providing valves for defence and specifically naval solutions. It operates this side of this business separately to its other interests, with dedicated workshops on site. The company is a key supplier to both BAE Systems and the Ministry of Defence (MoD), and counts Type 45 Destroyers and Astute Class Submarines among its portfolio of projects. It offers full through life capability and repair management for any system, immaterial of what company first manufactured it. It has the ability to strip and assess naval valve systems using appropriate non-destructive examination techniques and can restore them to as-built condition. Testament to the quality of the company is its inclusion in the top tier of BAEâ&#x20AC;&#x2122;s rating system of its entire 3,000 strong supply base. Broadyâ&#x20AC;&#x2122;s comprehensive and bespoke engineering service includes in-house design, foundry services and machining through to assembly and testing. Through its nonferrous foundry, the company produces castings in Aluminium Bronze, Gunmetal, Aluminium and Monel. It can also produce raw castings and machined components to either standardised spec or bespoke customer requirements.

Valves

Broady Flow Control The company has introduced the EFACS IT solution throughout the site – a move production director, Paul Liddle, says “has revolutionised the way we receive and process orders, greatly reducing lead times.” Since the implementation of the system, the firm has enjoyed a reduction in lead time from order receipt to goods dispatch of, on average, 15 per cent, and is able to cost new work quickly and accurately based on current and completed job profitability. Broady continues to actively seek a presence in new markets and expand its operations in areas where it has already been introduced. This was demonstrated by its recent stand at the Oil & Gas Indonesia exhibition in Jakarta. The company reported a high volume of traffic through the stand and Paul Robinson, sales director, said visitors – including British Ambassador in Indonesia Martin Hatfull – were impressed with what Broady presented. “This was a well attended exhibition with good visitor numbers and all those

I spoke to had direct involvement with procurement or project planning,” said Robinson. “Visitors to the stand were impressed by how extensive our manufacturing capabilities are as well as the range of materials offered.” The company’s green credentials were bolstered last year with the installation and commissioning of an energy efficient air compressor in the CNC Shop. Other green investment last year has included an energy efficient compressor in the main factory and the replacement of old heating systems with modern, energy efficient heaters which are operated in conjunction with destratification fans and an energy management system. The company estimates a saving of around 100 Tonnes CO2 per annum through its efforts thus far. Broady is also doing its bit to try and entice the next generation of talent into manufacturing. Each year it takes around six young people from Hull and the surrounding area on both engineering and administrative work experience placements, coordinated through local schools and Connexions. The company sees helping young people make the transition from school to work as a key element of its work with the wider community. For its new employees, Broady offers full five year apprenticeships based on peer assisted learning whereby new members of staff learn the reigns from existing ones; some of which have been with the company for over 40 years. end

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www.themanufacturer.com March 2010 Vol 13 Issue 03

Food Industry Special People and Skills The food industry upskills

Sustainable Manufacturing CRC launch date approaches

IT in Manufacturing Market review: ERP

Food and Drink The great British takeaway

Interview Troy Christensen

President, Constellation Australia and Europe