The Manufacturer July/August 2014

HOT TOPIC Better together?

How the Scottish referendum will affect the country’s manufacturing sector

MANUFACTURING LEADERSHIP A great reformation Can business affect positive change to EU bureaucracy?

WORKFORCE AND SKILLS Designing the engineers of the future Tackling the skills gap head on

MANUFACTURING TECHNOLOGIES A new voice in automation Who’s shouting out for automation in the food and drink sector?

IT IN MANUFACTURING Get it together The benefits of consolidating your IT systems

ALSO IN THIS ISSUE The massive logistical operation of moving the world’s largest commercial airliner TM looks behind the scenes of the Royal Mint The vibrant UK space sector The power of apprenticeships In partnership with:

Reaching new heights

Is innovation the answer to sustaining the UK’s soaring aerospace sector?

INTERVIEW Dr Hamid Mughal Manufacturing Director, Rolls-Royce

www.themanufacturer.com | July/August 2014 | Vol 17 Issue 6

What a bank should be

Charles Garfit, Head of Manufacturing, Santander UK

Whether small family companies or global corporations, we approach every business customer as an individual relationship. We strive to understand your unique needs and to make banking straightforward, so you can focus on growth. That’s why our clients get a dedicated, expert Relationship Director. We believe credit partners should meet you directly, so our decisions are as transparent as possible. We work hard to do right by you and your business now and in the long term.

It’s thanks to this approach that we’re proud to say 4 out of 5 of our business customers would recommend us.

Simple Personal Fair What a bank should be Find out how we’re supporting businesses like yours across the UK at www.santandercb.co.uk or email manufacturing@santander.co.uk We’re proud sponsors of the International Festival for Business.

GfK NOP Research: Santander Business Satisfaction survey Q4’13. 1,628 respondents interviewed.

Santander Corporate & Commercial is a brand name of Santander UK plc, Abbey National Treasury Services plc (which also uses the brand name Santander Global Banking and Markets) and Santander Asset Finance plc, all (with the exception of Santander Asset Finance plc) authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register numbers are 106054 and 146003 respectively. In Jersey, Santander UK plc is regulated by the Jersey Financial Services Commission to carry on deposit-taking business under the Banking Business (Jersey) Law 1991. Registered office: 2 Triton Square, Regent’s Place, London NW1 3AN. Company numbers: 2294747, 2338548 and 1533123 respectively. Registered in England. Santander and the flame logo are registered trademarks. Santander UK plc is a participant in the Jersey Banking Depositor Compensation Scheme. The Scheme offers protection for eligible deposits of up to £50,000. The maximum total amount of compensation is capped at £100,000,000 in any 5 year period. Full details of the Scheme and banking groups covered are available on the States of Jersey website (www.gov.je) or on request.

CCBB 0436 JUN 14 HT

Welcome

EDITOR’S INTRODUCTION

It’s not you, it’s me

After five fantastic years tracking the highs and lows of British manufacturing, the time has come for me to sign off my last issue and move on.

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68

The UK aerospace sector has reached cruising altitude. But will it be a long haul flight? P28

During my time with the magazine, a lot has happened to UK manufacturing.

From down beat doldrums to carnivallike celebrations of industrial revival, the journey has made fascinating subject matter from every perspective this magazine aims to expose.

Overall, the sector is undoubtedly in a manifestly more positive position than it was five years ago.

We’ve moved from a situation in which industry conferences and meetings with government were dominated by lengthy discussions about whether we really needed a long term industrial strategy, to a point where we are soon to celebrate the second anniversary of said policy and can point to a body of evidence of its effects on the national industrial landscape.

The Catapult Centres, the spread of University Technical Colleges, enhanced Annual Investment Allowances, funding for aerospace engineering masters courses, Employer Ownership of Skills, increasing apprenticeships, plummeting corporation tax, the patent box, improved R&D tax credits, four rounds of the Regional Growth Fund, AMSCI and more.

While your experience of the relevance or effectiveness of some of these initiatives may be patchy, it would be churlish to say they are not a clear sign of care and attention to better partnership between industry and government.

And in a concatenation of improving circumstances, we have also seen radically improved confidence reported in a range of industry surveys, including those from the SME focussed Manufacturing Advisory Service, EEF and the CBI. In May 2009, when I joined , the PMI for manufacturing recorded a paltry score of 45 – which was actually reported as a sign of improvement. (You’ll probably know by now that a score of above 50 signifies growth while a sub-50 score signifies sector contraction.)

In May this year, the PMI for UK manufacturing sat at 57.

Of course the journey to this positive place has not been a continuous upward trajectory. There have been numerous blips, certain sectors have fared significantly better than others, and it is certainly not the time to be complacent.

As EEF’s Terry Scuoler pointed out at the Make it Britain Conference during the International Festival of Business, growth forecasts for 2015 and 2016 are not as strong as 2014. Furthermore, while the previously mentioned surveys all spout statistics on improving investment intention, there is still a significant lag in investment reality and the UK’s balance of trade remains parlous.

But there is a feeling in the air that big things are about to happen. At Make it Britain, 60% of the 350-strong audience voted to say they were confident the UK could lead a new industrial revolution which would see it master the age of mass-customisation.

So I leave on a cliff-hanger. Will manufacturers grasp the opportunities before them? Or will inertia among lifestyle leaders and the risk averse allow others to steal the march?

The next instalment will come under the aegis of the articulate antipodean Callum Bentley, ’s new editor.

I will read with interest.

Jane Gray Editor July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 1

Editorial Advisory Board

The Editorial Advisory Board ’s editorial advisory board provides insight and guidance to the editorial team on a regular basis, helping maintain the relevance and quality of the magazine’s content, both in print and online. The board also provides diverse and expert comment on key industrial developments.

Deirdre Fox

Hywel Jarman

Tony Hague

Division Director, Drive Technologies, Siemens

Andrew Churchill Managing Director, JJ Churchill

Simon Edmonds Director, the Catapults Programme

Anna Schlautmann, 21: 3rd Year Logistics Apprentice, MBDA and ’s Apprentice of the Year 2013

Ross Meikle

Steve Evans

2 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

Global Manufacturing Director, Accolade Wines

Ben Taylor Assistant CEO, Renishaw Plc

Dave Mooney Managing Director, Drallim Industries

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

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

Richard Lloyd

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

Andrew Peters

would like to congratulate editorial board member Andrew Peters on his appointment as managing director of Siemens award winning motion control manufacturing facility in Congleton.

We wish Andrew every success in his role there and thank him for his continued commitment to the editorial advisory board.

Director of External Affairs, EEF

Director of Strategic Business Development, Tata Steel

CEO, the Royal Academy of Engineering

Managing Director, Ebac Group

To find out more about our Editorial Advisory Board and the work they do to improve The Manufacturer magazine’s offering to its readers, go to: www.themanufacturer.com

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ABOUT US

Meet the team Nick Hussey Chairman

Editorial

IT Editor Malcolm Wheatley

malcolm@malcolmwheatley.co.uk

Jane Gray Editor

Nick has 20 years of experience in the publishing industry spanning titles in the UK, US, Asia and Australia. In addition to his commercial experience Nick has also worked in government, spending a year as managing director of Manufacturing Insight, a programme aimed at changing the image of manufacturing among young people. He holds several non-executive directorships and is a founder member of the IET’s Manufacturing Policy Panel. n.hussey@sayonemedia.com

David Farrow General Manager David joined SayOne Media in 2012 managing the marketing across the business. He has nearly 25 years’ experience in the conference and publishing industry having worked for the likes of LexisNexis, Kaplan Hawksmere and Payroll World. In February 2014 he was appointed General Manager of SayOne Media. d.farrow@sayonemedia.com

Henry Anson Sales Director Henry is responsible for SayOne Media’s commercial activities, developing new concepts and products for ’s readership. Henry is keen to build a bridge between the manufacturing community and the service sector which supports it. h.anson@sayonemedia.com

Jane joined SayOne Media in 2009 for the launch of the Lean Management Journal, sister publication to . Reporting for , Jane focused on industry skills development features and lean enterprise until she became editor in June 2011. She is a trustee of the D&T Association. j.gray@sayonemedia.com

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

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info@sayonemedia.com www.sayonemedia.com

The Manufacturer is independently audited by:

j.pozzi@sayonemedia.com

Victoria Fitzgerald

v.fitzgerald@sayonemedia.com

Design

Art Director Martin Mitchell

martin@opticjuice.co.uk

Designers Alex Cole Nick Bond Katherine Robinson

design@opticjuice.co.uk

Sales and Events

Callum Bentley Deputy Editor Callum joins The Manufacturer after spending the past three years working as a print and online news journalist for a major regional news organisation in Australia.

With a strong background in news for the web, Callum is responsible for boosting and updating The Manufacturer’s online presence, while also contributing to and assisting with the production of the monthly print magazine. c.bentley@sayonemedia.com

Operations Manager Grace Gilling

g.gilling@sayonemedia.com

Project Director Matt Chilton

m.chilton@sayonemedia.com

Sales Manager Sarah Hough

s.hough@sayonemedia.com

Marketing Manager Anna Soubbotina

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Conference Producer Sarah Sibbett

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Client Account Managers Benn Walsh b.walsh@sayonemedia.com

Eva Lindsay Event Production Manager Eva joined The Manufacturer in 2012 having worked in the events industry for four years across a number of sectors, with her primary focus on defence. Drawing on her broad experience, Eva will be heading up the event content team and helping to grow and develop the event programme, with special focus on the company’s popular Factory Tours. e.lindsay@sayonemedia.com

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

Working together to secure the future of manufacturing.

ISSN 1477-3201 BPA audit applied for June 2009.

Copyright © SayOne Media 2011.

Reporters James Pozzi

In order to receive your monthly copy of kindly email subscriptions@ sayonemedia.com, telephone 0207 401 6033 or write to the address below. Neither The Manufacturer or SayOne Media can accept responsibilty for omissions or errors.

Terms and Conditions Please note that points of view expressed in articles by contributing writers and in advertisements included in this journal do not necessarily represent those of the publishers.

Whilst every effort is made to ensure the accuracy of the information contained in the journal, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrieval system or transmitted in any form or by any means without prior written consent of the publishers.

EEF is dedicated to the future of manufacturing.

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

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

Cranfield University EEF Institute for Manufacturing, University of Cambridge

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Answers for industry.

July/August 2014

CONTENTS

08 News and regular columns

Workforce & Skills

A summary of manufacturing news and events with commentary on industrial research and policy 22 Out & About visits Morgan Motors, Gardner Aerospace and Birmingham University 24 Best of Online What you wanted to read most on ’s website in May 26 Hot Topic James Pozzi explores the potential impact for Scotland’s manufacturing if the nation decides to call it quits with the UK 28 Sector Focus: Reaching new heights puts its tray tables up and its seat in an upright position as it takes off to explore the UK’s booming aerospace sector 38 Interview: Manufacturer, evangelist, visionary Dr Hamid Mughal, manufacturing director at RollsRoyce, shares his passion for his sector and sets out his unfinished business in shaping its future 42 60 second interview: Mike Patton, GE Aviation Wales 44 Monumental movements Callum Bentley follows the massive logistical movement of the world’s largest commercial airliner – the Airbus A380 46 Royal Mint condition Victoria Fitzgerald takes a trip to Wales to see what’s happening behind the scenes of the UK’s oldest manufacturer – the Royal Mint

64 Snaphots: The ongoing presence of the Bloodhound SSC project and the Talent Retention Solution’s progress in transitioning armed forces personnel into manufacturing roles 66 Designing engineers of the future: catches up with the Design & technology Association’s programme to get teachers working on industry skills gaps Other topics in this section: EAL’s Trailblazer’s apprenticeship scheme and Employee of the Month, Dr Kathryn Taylor from Romax technology

Pillar features Manufacturing Leadership 50 Breakthrough Birmingham: What does the Universality of Birmingham have to offer British aerospace manufacturers?

54 A great reformation: Can business affect positive change to EU bureaucracy? Jane Gray talks to Terry Scuoler of CEEMET about the challenge Other topics in the section: RBS explains why now is the time for manufacturers to servitize

Manufacturing Technologies 68 This month features articles and case studies from members of the Automation Advisory Board including Omron, PPMA, and PP Electronics

Finance & Professional Services 72 Growing up: How the Sharing in Growth scheme has helped aerospace suppliers

IT in Manufacturing 74 The Market Calls: Contributing editor Malcolm Wheatley finds out how Rotork Gears halved its time to market Other topics in this section: Martin Aerospace discusses it’s major challenges and Epicor eliminates the fear of upgrading your ERP system 80 Last Word: Jane Gray calls for international action on data regulation to unleash the power of the Internet of Things

OUTBOUND REPORTS Export Finance Funding UK businesses looking further afield

6 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

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NEWS

www.themanufacturer.com/news

Supply chain

Companies can now bid for a share of £100 million to help strengthen their domestic supply chains.

The Governement funding will provide research and development support, skills training, investment capital and encourage major new suppliers to reshore in the UK. It comes from the Advanced Manufacturing Supply Chain Initiative (AMSCI). Five previous rounds of AMSCI funding have secured nearly half a billion pounds of public-private investment for 44 projects in the UK. Business Secretary Vince Cable said: “Our industrial strategy, which has given business the confidence to invest, is paying dividends in the reshoring we have seen so far. We will continue to support businesses to secure more highly skilled jobs and a stronger economy.” Read more about the funding at bit.ly/ReshoreFunding

Automotive

Toyota has added a further 650,000 cars to the recall it issued last year over a defect in passenger airbags. Toyota confirmed affected vehicles, including the Corolla, Camry Yaris and Vios models, have a defective part which could cause the airbag inflator to rupture which would see it be deployed abnormally in the event of a crash. The move, which was triggered by one report of a seat cover burn over the issue, now takes the number of cars recalled to 2.79m globally and brings fresh woe to the world’s biggest carmaker. It added that it was also modifying the remedy that it was using to address the issue, while also replacing the affected part in vehicles. The company also confirmed it would now replace the inflator in all involved vehicles, which is to result in the re-notifying of 350,000 owners across the world. Read more about the latest round of recalls at bit.ly/ToyotaRecallsAgain

8 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

Emirates airline canceled an order for 70 A350 aircraft in June raising concerns about the knock on effect for Airbus’s supply chain

Aerospace

Rolls-Royce faces the potential loss of £2.6bn after Emirates cancelled a £13bn order for 70 Airbus A350 aircraft, the manufacturer’s biggest-ever cancellation. The manufacturer confirmed the cancellation of the order placed in 2007 after Emirates reviewed its fleet requirements. As a result of the cancellation of delivery which was set for 2019, RollsRoyce’s order book could shrink

by £2.6bn, accounting for around 3.5% of total orders. In a statement, Rolls-Royce, which announced its first profit warnings in over a decade in February, said: “While disappointed with this decision, we are confident that the delivery slots which start towards the end of this decade vacated by Emirates will be taken up by other airlines.” Read more about the cancellation at bit.ly/EmiratesCancellation

Government Clothing, followed by tobacco and alcohol, are the most common counterfeited items in the UK. These findings are part of a new report detailing the extent of intellectual property (IP) crime, and the UK’s response. The report was launched on the first day of the International IP Enforcement Summit as the Government underlined its commitment to tackling IP crime. Better collaboration, with industry and across borders, was a key theme of the summit on how to strengthen the fight against IP crime, estimated to account for 10 per cent of global trade. IP Minister Lord Younger said: “The value of IP to the economy is unquestionable. The UK invests much more in knowledge and ideas than it does in assets such as buildings and machinery, and IP intensive industries account for a third of all jobs in the EU. New figures published reveal the extent of intellectual property crime activity and the UK response. Read more about the IP crime figures at bit.ly/IPcrime

The top five counterfeit products investigated by Trading Standards are clothing, tobacco, alcohol, footwear and DVDs 72 million links to infringing digital material removed by the British Phonographic Industry (BPI), up from 10 million in 2012/13 The specialist City of London IP Crime Unit is investigating nearly £30 million worth of IP crime in its first nine months

MANUFACTURING NEWS

Company investment

A new laser-based R&D cell has been installed at the Manufacturing Technology Centre (MTC) in Ansty, West Midlands.

The installation aims to help keep British manufacturing at the forefront of assembly, fabrication and joining technologies. At the heart of the system is Europe’s most powerful non-military laser, a 20kW rare earth Ytterbium fibre laser with a four-way beam switch, supplied by automation and laser specialist Tec Systems of Loughborough.

It built the bespoke system in consultation with MTC’s specialist research teams and incorporated a highperformance data acquisition and control system based on a Mitsubishi Electric iQcontroller. The iQ-controller controls the laser, a six-axis test piece handling robot and multiple points of distributed I/O over Profibus

MTC’s new laser is the most powerful nonmilitary laser in Europe

connections. It is integrated with a GOT touch screen HMI (Human Machine Interface), which displays comprehensive information on a large number of parameters such as welding gas

Government

The Automotive Investment Organisation, set up to spearhead inward investment for the UK, has “smashed” its targets in its first year, the Government says. Business Minister Michael Fallon announced that the Government funded body could “take some of the credit” for the automotive sector’s massive contribution in job creation and growth. According to Government, the Automotive Investment Organisation achieved £457 million worth of investment; the funding of 80 projects – beating the target of 60; and more than 5600 supply chain jobs secured – beating the target of 4000 jobs. Read more about the Automotive Investment Organisation at bit.ly/TwfjRW

Exports

The British Chambers of Commerce and Santander have entered into a partnership to support UK SME exporters.

Santander is partnering with the British Chambers of Commerce on its online export platform, Export Britain. The online service from the British Chambers of Commerce (BCC) is designed to showcase opportunities in key international markets, and link UK exporters to the support available from British Chambers and its partners around the world. The international bank Santander has said it is committed to supporting the growth of international trade. It has more than 14,000 branches worldwide and a network of international alliance partners. It also provides an International Desk in each of the markets it operates in, dedicated to helping customers who want to grow their business overseas. Read more about the partnership at bit.ly/SantanderBCC

flow, cutting gas flow, robot position, laser power, safety functions, etc.

Read more about the laser at bit.ly/BiggestLaser

Contract wins

The UK arm of defence giant Thales has won a £48m order from the Ministry of Defence to manufacture missiles at its Belfast factory. The weapons system project, which is a precision strike missile for the Royal Navy, will see 60 of the site’s 450 staff undertake work with immediate effect. The weapon has been designed to be fired from a variety of land, sea and airborne platforms and will be used by the Royal Navy to defeat the threat from small ships and fast inshore attack craft. Northern Ireland first minister Peter Robinson said the move will secure 60 high quality jobs in Belfast, where Thales has been based since 1993. “The talents of Northern Ireland’s manufacturing and engineering labour force are now held in high esteem across the global aerospace and defence industries and today’s announcement is further evidence of this,” he said. The company, which had revenues just short of £90m last year, also hopes the move will provide opportunities throughout its Northern Ireland supply chain. Read more about the missile at bit.ly/ThalesMissile July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 9

NEWS www.themanufacturer.com/news

Bee Health has reshored £15m worth of tablet and capsule manufacturing

Contract wins

Nutraceutical manufacturer, Bee Health, has won £15m of tablet and capsule production work over the heads of competitors in low cost economies. Bee Health convinced two global customers that it is able to offer the superior flexibility of supply and better quality than their existing Chinese suppliers. It has won one £7m and one £8m contract to produce tablets and soft gel capsules. Bee Health received funding and support from the Manufacturing Advisory Service to optimise its total cost offering and provide compelling efficiencies for its customers. One of the customers involved is the UK high street retailer for alternative remedies, Holland and Barrett. The new contracts will account for 70% of Bee Health’s turnover in 2014 according to managing director Steve Ryan. Read more at bit.ly/BeeHealthReshore

Company investment

Correction The Manufacturer would like to clarify that the Institute for Advanced Manufacturing and Engineering (AME) is a collaboration between Coventry University and Unipart Manufacturing.

It is not associated with Warwick Manufacturing Group as was suggested in the previous edition.

Coca-Cola Enterprises (CCE) has announced new plans for investment at its production facility on Milton Road, East Kilbride. The £2.2m injection for new manufacturing technology comes in a landmark year for the facility, which celebrated its 50th anniversary in May. The investment will see the introduction of a new state-of-the-art robotic palletiser in early 2015. A first for the Scottish site, the machinery automatically stacks cases and will run at much higher line speeds of 14,000 bottles per hour (bph) initially, with the ability to increase to 18,00020,000 bph. This will improve operating and energy efficiency at the site. The news comes at the same time as the announcement from Coca-Cola Great Britain (CCGB) that Coca-Cola LifeTM, the newest addition to the iconic Coca-Cola Trademark, will be available across Great Britain later this year. Coca-Cola Life will be made and produced at East Kilbride as well as at CCE’s other factories in Great Britain. Read more about CCE’s investment at bit.ly/CCEInvestment

10 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

Workforce and skills

More than 5,000 jobs are to be created in the North East after a deal was struck to attract multi-million pound private investment to a new manufacturing site.

The Sunderland City Deal in partnership, wiht nearby South Tyneside was unveiled by cities minister Greg Clark and council and business leaders.

As part of the City Deal, the green light has been given for the International Advanced Manufacturing Park (IAMP) which lies across the borders of both Sunderland and South Tyneside. It is estimated the site will attract up to £295m of private sector investment while creating an estimated 5,200 jobs. The development will house automotive, off-shore and other hi-tech businesses in an effort to build on the North East’s manufacturing heritage.

As well as the park, the deal confirmed £82.5 million towards Sunderland’s new Wear bridge project and backing for developing the city’s Vaux site into a central business district.

Read more about the deal at bit.ly/SunderlandJobs Airbus is challenging the next generation of students to reinvent the norms associated with air travel by launching the fourth edition of its Fly Your Ideas Challenge. The scheme provides students with an opportunity to put their classroom learning and research into practice. Participants will work with a team of aviation professionals on real-world challenges; an experience that will equip them in a highly competitive job market.

The competition is open to students of all nationalities and disciplines, from engineering to marketing; science to design.

Registration for Fly Your Ideas 2015 opened in June 2014 and ideas can be submitted from this September. To find out more about registration, visit bit.ly/FlyYourIdeas

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NEWS www.themanufacturer.com/news

Company announcements

The energy arm of Rolls-Royce has committed to a £1bn share buyback after the sale of its energy gas turbine and compressor business to Siemens. The transaction is expected to be completed by the end of 2014. CEO of RollsRoyce, John Rishton said: “As no material acquisitions are planned, and reflecting the strength of our balance sheet, we will return the proceeds of the energy sale to our shareholders.” The news comes as the firm conducts an investor briefing to provide an update on group strategy, capital allocation, financial guidance framework and accounting. Read more about the buyback at bit. ly/RollsRoyceBuyback

Production of the Discovery Sport will bring another 250 jobs to JLR Halewood

Workforce and skills

Jaguar Land Rover’s Halewood factory will produce the firm’s new Discovery Sport model creating 250 new jobs. The addition of 250 jobs at Halewood will take the total workforce at the site to 4,750. This is over three times the number of people employed there in 2010. Dr Ralf Speth said he is delighted Halewood has been made responsible for the production of the Discovery Sport. He said the investment is “totally deserved, and strengthens the ‘special relationship’ that bonds Jaguar Land Rover to this great city.” The news comes on the back of JLR receiving this year’s Queen’s Award for Enterprise in International Trade. The accolade recognises the success of the firm’s global export drive. Read more about the award at bit.ly/JLRQueensAward

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MANUFACTURING NEWS

Company announcements

Vodafone has announced its plans to acquire Italian company Cobra Automotive Technologies for €145m (£115m). Cobra provides vehicle manufacturers, dealerships and aftermarket customers with a range of products and services, including telematics, usage-based insurance, and vehicle tracking. The voluntary public takeover offer is part of Vodafone’s strategy to connect more everyday objects with the British mobile telecommunications company eager to develop its business in the so-called machine-to-machine industry — also known as the Internet of Things. Vodafone has also entered into an agreement with the main Cobra Shareholders to effect certain matters including agreeing to tender their Cobra Shares into the Takeover Offer. The growth in connected products represents a potentially lucrative sales opportunity for the mobile telecommunications industry, analysts say, with new connected wireless devices set to surpass the number of mobile handsets in the coming decade, according to consultancy PwC. bit.ly/VodafoneIoT

Top 100 manufactuers

The Manufacturer magazine is on the hunt for the UK’s best manufacturing role models. Manufacturing has an image problem. This has been recognised in conversations with our magazine’s editorial team, at industry conferences and in numerous industry reports which have been widely circulated in the business community and government. The Manufacturer Top 100 list will help change this. We will profile the 100 most inspiring manufacturing leaders, as identified by our readers, the wider industrial community and the public. Your nominations can recognise outstanding leadership, wealth creation, young achievers and commitment to competitive, sustainable business growth. The nomination process is simple. In no more than 200 words let us know why you believe your nomination should sit among the sector’s Top 100 role models.

Email nominations to top100@ sayonemedia.com. Nominations close on August 20, 2014.

For a full list of application criteria, visit bit.ly/Top100manufacturers

Dates for your diary July

21-25

The 11th International Conference on the Structure of Surfaces will take place at Warwick University over the course of five days. The event provides a platform to assess the status of atomic-scale and nanoscale structure determination of surfaces, interfaces and nanostructures, and the relationships between such structure and physical and chemical properties. http://icsos11.iopconfs.org

AUGUST The World Renewable Energy Congress 2014 will be

3-8

held at London’s Kingston University. The event will discuss sustainability, green buildings, and how the development of large scale renewable energy industry must be at the top of all development, economic, financial and political agendas. www.wrenuk.co.uk

September Southampton Solent University will host the 12

12

th International Conference on Manufacturing Research (ICMR) 2014. The event will include keynote presentations by internationally renowned researchers and industrialists, as well as papers from academia and industry, exploring all core areas of manufacturing engineering. www.solent.ac.uk/conference-centre/events

23-24

The 3rd Annual EPSRC Manufacturing the Future Conference will be held in Glasgow at the city’s Science Centre. The conference programme will include talks for invited academic and industry speakers, exhibitions from all Centres for Innovative Manufacturing, and networking opportunities including a conference dinner. www.ukmanufacturing.org

30-2

OCTOBER The PPMA Show 2014, the UK’s premier freeto-attend complete production line event for processing and packaging machinery, will take place over three days from September 30 at Birmingham’s NEC. Now in its 27th year, the event will showcase the latest innovations and developments across the UK’s manufacturing industries while attracting suppliers from the food and drink, pharmaceutical and electronics industries. www.ppmashow.co.uk

October The Northern Manufacturing & Electronics 2014 exhibition

1-2

dedicated to serving the needs of manufacturing and electronics industries in the North of England will take place over two days in Manchester. The exhibition gives the opportunity to see the latest manufacturing technology and production techniques across industries ranging from automotive, aerospace and defence. www.industrynorth.co.uk

8

The Manufacturing & Engineering Expo 2014 will be held in Maidstone and aims to support and showcase the engineering and manufacturing sectors. The all-day event enables industry professionals to assess and compare the latest products and services for engineering, electronics and manufacturing. Kevin Gaskell, former Porsche and BMW MD, has been confirmed as this year’s keynote speaker. www.manufacturingandengineeringexpo.co.uk

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 13

UPCOMING EVENTS To see a full events listing please visit: themanufacturer.com/events

The Manufacturer of the Year Awards 2014 Entries close: 31 July 2014, Birmingham

Accident Prevention in Manufacturing 9th September 2014, The Waldorf Hotel, London Future Factory Series: Free to attend for manufacturers*

Export Connect 9th September 2014, The Waldorf Hotel, London Free to attend for manufacturers*

The Manufacturer Directors’ Conference 2014 26-27 November 2014, ICC, BIRMINGHAM

ERP Connect 27th November 2014, ICC, Birmingham

There is not long left to submit your entries and raise your profile at The Manufacturer of the Year Awards 2014. With 14 categories to choose from, the awards offer the perfect stage for your business to share its success and celebrate your achievements with industry peers. It is your opportunity to showcase your company, empower employees and benchmark yourself within the industry. themanufacturer.com/awards #TMAwards2014

An estimated 3.1 million working days have been lost due to ill health or injury in 2013. The direct impact on companies include increased costs, loss of productivity and employee absence. Attending this conference will give you an insight into accident prevention by address rising concerns in regards to training, employee engagement, implementation of H&S standards, as well as the management of ergonomics within the workplace to increase productivity. www.themanufacturer.com/accidentprevention2014 #AccidentPrevent2014

While the UK has experienced a recovery in recent times, there is urgency to address the existing trade deficit and the ambitious targets set out by the industry’s leaders and the government. A successful export strategy opens up new opportunities for long term growth and expansion for manufacturers. The Export Connect conference will focus on analysis of the opportunities available, practical advice in overcoming possible trade barriers and establishing regional trade links. www.themanufacturer.com/export2014 #Export2014

The Manufacturer magazine invites you to join senior manufacturers from across the industry for The Manufacturer Directors’ Conference. Now in its sixth successful year, The Manufacturer Directors’ Conference will bring together a wealth of knowledge from across industry, government and academia. With a mixture of debates, manufacturing case studies, hands on workshops and practical presentations. themanufacturer.com/events #TMDC2014

An intensive one day event specifically designed for senior level professionals who are procuring an ERP system within the next 24 months. This event is constructed to give you the opportunity to hear from industry experts, learn from real life case studies and schedule 20 minute one-to-one meetings with vendors. Hear best practice examples regarding selection, implementation and integration. One-to-one meetings give you the opportunity to discuss your requirements, explore cutting edge solutions and fast track the vendor short-listing process. If managed properly – ERP purchase and implementation can be painless and cost effective. www.erpconnect.com #ERPConnect

14 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

*FREE for attendees from manufacturing companies. £995 +VAT per delegate - standard booking fee for delegates from consultancies/ solution providers. T&C’s apply.

See more at: www.themanufacturer.com/events

What’s your relationship with ERP?

Engaged Still Looking

It’s Inspiring In a Relationship It’s Complicated

ERP should inspire your business, not complicate it.

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

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

APPOINTMENTS

Juergen Maier

Siemens

Juergen Maier has been appointed CEO of Siemens, a role he will undertake from July replacing Roland Aurich, who is retiring after 28 years.

Maier has become a well-known face in the industrial community in recent years thanks to his strong engagement in a wide range of conferences, schools engagement programmes and government initiatives.

He is particularly active in the skills arena and has championed the growth of advanced and higher apprenticeships in the UK. He is a board member of the industry skills organisation Semta.

Before 2008, when Maier was made MD of Siemens UK, he held a number of senior positions within Siemens in the UK and Germany including two Divisional Managing Director roles and Manufacturing Director

John Pearson and Trevor Garlick Trevor Garlick, regional president North Sea at BP, and John Pearson, Group President, AMEC Europe, have been appointed the co-chairmen of the organisation, representing, respectively, the operator and contractor

Tim Mead

of the award winning Drives factory in Congleton, Cheshire.

Professor Siegfried Russwurm, a board member at Siemens AG congratulated Maier and tanked Mr Aurich for his significant contribution the to Siemens globally “I am sure Siemens will continue to grow its business in Britain under Juergen Maier’s leadership, building on the recent investments we have announced,” he said.

Oil & Gas UK

communities. Both Mr Garlick and Mr Pearson previously served on the board as operator vice co-chairman and contractor vice co-chairman.

They succeed James Edens, vice president and managing director at CNR International UK, and Gordon Ballard, chairman and country manager of Schlumberger UK, who have now completed their two-year maximum period of tenure as co-chairmen of Oil & Gas UK.

Malcolm Webb, Oil & Gas UK’s chief executive, said: “The recent Wood Report demands, amongst other things, new and better collaboration, engagement and delivery between all companies’ right across the supply chain and between the industry and government. I look forward to working with both chairmen to that end.”

Innomech

Tim Mead has been appointed as managing director of automation consultancy GB Innomech, taking over from retiring MD David Beale, who remains as company chairman.

Mr Mead, previously the company’s commercial director, will now oversee

Juliette Mullineux

all operational activities, as well as the consultancy’s business development programme.

This will also see Mead and Innomech’s senior management team will provide a seamless transfer for clients and staff as they are already managing most aspects

of the business, including all major client relationships and projects.

One of Mead’s key achievements outside of Innomech has been to build a replica E2H Percival Mew Gull monoplane that was completed and flown for the first time last year.

products manufacturer Holt Lloyd International and arrives at a time of new projects for JBL. The company recently relocated its Commercial and Marketing functions to a £1.5m new Commercial and Technical Centre in Greater Manchester.

Max Bass, commercial director at JBL, said: “Juliette’s appointment is part of the wider expansion plan for James Briggs Ltd, and marks a new chapter for the company as we continue to innovate our business and invest in our people.”

JD Briggs

James Briggs (JBL), the manufacturers of aerosols and consumer chemicals, has announced the appointment of Juliette Mullineux as product marketing manager.

Juliette joins the Manchester-based firm from automotive aftermarket Electronics manufacturing solutions provider eXception EMS is expanding its UK sales team with the appointment of Hugh Haughton as sector director looking after the UK market.

Mr Haughton’s appointment supports a year of continuing growth as the company looks to focus on its key growth areas, and will see

him support existing customers as well as develop new ones.

Haughton has a long history in the CEM and Semiconductor Component distribution sectors, with over 18 years’ experience at organisations such as Custom Interconnect, Avent Memec and Cemgraft.

Mark O’Connor, eXception EMS CEO said: “Hugh’s experience from the component industry is essential in this harmonious partnership of design to manufacture, paramount in this era as technological innovation increases across a variety of sectors.”

To notify The Manufacturer of your company’s appointments, please contact James Pozzi at: j.pozzi@sayonemedia.com or: 0207 401 6033

16 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

TEN GOOD REASONS to choose Arco Safety Gloves Fact: An estimated 1.6 million working days last year were lost due to handling injuries* Your employees’ hands are the most high risk part of their body at work. With the UK’s largest range of safety gloves, Arco can help you specify the right gloves for the job.

Gloves are replaceable. Fingers and hands aren’t.

Hand Protection An Expert Guide Cut Protection Disposables Chemical Protection Vis Thermal and Hi

Secure and Mechanical Specialist Handling Welding Protection Food Sector

Handling

To receive a copy of our NEW Expert Guide to Hand Protection visit: www.arco.co.uk/hands

*Based on a three year pooled average 2010/11 to 2012/13. www.hse.gov.uk/statistics/lfs/injkind2.xls

Develop your manufacturing business leaders In its 11th year, the MSc in Operations Excellence is a part-time executive programme developed to help your manufacturing leaders realise their full potential and equip them with the skills to respond to change and advances in the operations supply chain.

Flexible, focused learning • Inspires professionals who will lead the development of the operations supply chain.

• Develops the knowledge required to initiate the implementation of change in business.

• Encourages contribution to the transformation of businesses into world class organisations.

To find out more www.cranfield.ac.uk/sas/opsex E: enquiries@cranfield.ac.uk T: +44 (0)1234 758008 Open Day Wednesday 13th August 2014

“

The Operations Excellence MSc course is challenging and rewarding. It has encouraged the team to explore and review aspects of our business with new understanding. It is great to be part of such a motivated and enthusiastic team of people

“

• Fosters the skills to build a new strategic perspective.

Alison Price Principle Manufacturing Engineer Rolls Royce

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 17

POLICY POINT & BACK TO SCUOLER

Policy Point.

Back to scuoler.

Sahar Danesh, principal policy advisor for Manufacturing Institution of Engineering and Technology highlights the most important reports which must stand at the centre of the manufacturing drive for growth.

hen the Governor of the Bank of England speaks you can read about it on the front page of most newspapers - whatever he says.

Last month’s Mansion House speech was no exception, and for good reason.

EEF’s Terry The inclusion of a line pointing to the Scuoler eases possibility of interest any panic rate rises “sooner than markets currently ahead of the expect” is what has proposed sparked interest.

After such a long interest rate period of inactivity increase from on interest rates the dial moved towards the Bank of MPC action, almost England. as soon as the Bank set out its forward guidance some 10 months ago. This was a necessary and balanced reaction to the surprisingly strong pickup in growth (EEF’s latest forecasts are 3% for GDP and 3.6% for manufacturing this year) and in the labour market.

A quick review of the Bank’s messaging in recent inflation reports shows we’ve moved on significantly from February’s continuing warning of “significant headwinds both at home and from abroad”, and spare capacity concentrated in the labour market meaning “Bank rate may need to remain at low levels for some time to come” to the view in May, which set out that when Bank rate does start to go up, it would do so only gradually. Most recently, the May MPC minutes hinted the debate inside the committee was likely to start heating up in the months ahead given that there was now a “variety of views on the appropriate path of monetary policy.”

As of last month, most forecasters were still expecting no rate hikes this year. Since those forecasts were made there has been little substantive change in the economic picture.

This all leaves the decision in finely balanced territory for the time being. However, the prospect of rate rises isn’t too much of a concern for the manufacturers we’ve been speaking to recently. Some have limited borrowing and others (SMEs) have seen elevated spreads on lending which shouldn’t be impacted significantly by modest small increases in Bank Rate.

T

here has been a series of well-publicised reports that address the policy challenges facing the manufacturing industry. An Insight into Modern Manufacturing, the report we published in May through Engineering the Future highlighted the issues that affect UK manufacturing performance. The key messages from this report highlighted the diversity of UK manufacturing and the need for government support to be consistent and long term.

The anecdotal evidence from the interviews behind this report complement the quantifiable evidence from the Foresight report, The Future of Manufacturing, published in 2013. The diversity of manufacturing and the way the industry will change in the next 50 years is explored in four key future characteristics of the industry.

The All-Party Parliamentary Manufacturing Group’s report Making Good also makes 10 strong recommendations to government on a long-term fiscal strategy and focuses on understanding what shapes industrial culture in the UK and how it can be changed to improve manufacturing. This report suggests a more user-centred approach to industrial policy and business support for manufacturers.

However, the most common denominator that all these reports have highlighted is the dire shortage of skilled workers in the industry. Professor John Perkins’ Review of Engineering Skills is a call to action for the long-term investment in engineering professionals and sets out long-term and short-term recommendations on how to ensure that we can address the skills shortage in our industry.

All these reports have explored the industry in detail through different perspectives, but the quantity of information can become overwhelming for government.

That is why we have started to distil the key messages from these reports to produce a document that highlights the reoccurring themes together with recommendations that can be adopted by government.

18 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

W

HEADLINE SPONSOR:

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Focus your camera on British manufacturing and help transform the image of our industry by entering the EEF ‘Make it Britain’ Photography Competition.

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Letters to the editor

Production lines

Letters to the Editor John Mills Chairman of The Pound Campaign and chairman of JML

It is essential that Britain increases its exports and improves its manufacturing base but that will not be possible until the pound is at a much more competitive level.

Over the past 40 years, the UK’s manufacturing base has been hollowed out by our over-valued currency. Manufacturing output is still lower than it was in 2008. In 1970, 32% of UK GDP came from manufacturing; that figure is now hovering around 10%. The UK has not had a visible trade surplus since 1982 or an overall payments surplus since 1983. A sustainable, strong economy has to be built on a durable manufacturing sector. We will never otherwise be able to pay our way in the world.

The strength of the pound has priced Britishmade products out of international markets, putting our manufacturers at a competitive disadvantage. The return on capital employed in manufacturing in the UK is five per cent - a third of what it is in services.

I set up The Pound Campaign, to give voice to those people who believe that the UK will never be able to compete in the world without a more competitive exchange rate - no matter who is in government in 2015.

If we had a more competitive pound, our growth rate could be stepped up to as much as 5% per year, creating quality jobs in Britain for the five million people who are currently unemployed.

We must create a consensus among manufacturers for strategic action on the level of the UK exchange rate and I propose that The Pond Campaign is the ideal vehicle for this movement.

Anonymous

Despite economic recovery, investment in UK manufacturing supply chains is lagging and the innovation looked for in SME suppliers by their Primes and Tier-1s to drive down total cost of production is weak.

There are many reasons for this but there is one which I find particularly worrying.

In many industrial sectors, the proportion of out-sourced material in a Prime’s total cost of manufacture can be between 70% and 85%. This is likely to increase as Prime focus on assembly and servitization.

In other words, the importance of suppliers to the final cost position of the end-customer is both large and growing.

Recognising the increased risks this brings, there has been a commensurate drive towards having long-term agreements (LTAs) which seek to manage this risk through mutually beneficial commitments over an extended period of time.

This is a fine idea in principal but SMEs was little ability to make these LTAs ‘partnerships’ in any real sense of the word.

Instead we see a proliferation of problem contractual terms including: non-returnable, up-front ‘contribution’ payments for the right to tender – disingenuously referred to as a “Supplier Participation Contribution” by one respected aero-engine manufacturer; Cancellation at convenience clauses; extended payment terms with 75 to 120 days becoming ubiquitous; costcompetitiveness clauses that allow the Buyer to cancel the LTA if at any time they can find the product cheaper elsewhere.

So much for partnership.

This isn’t the whinging of an SME that wishes life was easier.

On the contrary, conspicuous by their absence from the above list are liquidate damages for non-performance and warranties.

I expect to be held to account for my product and expect to see that reflected in an LTA. But the ultimate contract simply has to pass a ‘reasonableness’ test and be bankable.

Letters to the editor are highly encouraged and can be submitted for anonymous publication at contributor’s request.

Please send your letters and comments to c.bentley@sayonemedia.com

20 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

YOUR FUTURE BEGINS HERE

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26 – 27 November 2014

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Themes Include: Technology Utilisation and Development Creating “Out of the Box” Business Opportunities

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’s editorial team is out and about at a wide variety of industry conferences, debates and factory tours month in, month out.

Let’s get a snapshot of the most interesting trips in June.

Refining a British design classic

James Pozzi tours the Malvern home of Morgan Motors to witness how the quintessentially British car maker is adding a modern twist to its classic designs.

M

organ Motors is unique in a multitude of ways. Aside from its inimitable vehicle design, long established as a cult favourite of motor enthusiasts, it is one of the few remaining British-owned automotive manufacturers operating today.

Smaller in scale than the factories of the foreignowned carmakers grabbing the headlines in the market’s resurgence, Morgan’s Worcestershire headquarters of 104 years is as far removed as can be from the automated factories of mass producing OEMs. Assembling vehicles including the re-launched three-wheeler, its approach is altogether more hands-on.

The majority of design and production, from the prototyping to the wood work, is done on site. With a highly customised vehicle line where all products are sold by pre-order, the factory produces around 1,300 cars annually, compared to a figure nearer 800 just five years ago. As demonstrated by the success of other British icons such as Triumph, the clamour for automotive vintage is helping Morgan expand domestically and in new markets such as the Middle East.

With over 160 employees working in the Malvern facility, Morgan’s role in the local economy is a crucial one.

In its supply chain, chassis assembly takes place in Rosson-Wye, while the front wings

22 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

complimenting the cars’ aircraft cockpit style interior are made by a supplier in Worcester.

But while some of the methods remain the same, head designer Jon Wells says the company has benefited greatly from utilising new software products.

“It is extremely exciting to integrate modern design consideration into the traditional manufacturing environment Morgan nurtures,” he said. “We are able to ensure exciting design ideas make it to production accurately whilst maintaining the inherent charms of hands-on craftsmanship.”

OUT AND ABOUT

Gardner gets it going Callum Bentley was in Derby to see first-hand how aerospace component supplier, Gardner managed to turn its business around and open its new manufacturing facility.

J

ust over a decade ago, Gardner Aerospace, one of Europe’s largest independent manufacturers of metallic aerospace detailed parts was on the verge of collapse.

Now, after an extremely wellimplemented turnaround plan, the company has officially opened its £10 million Victory Road factory in Derby.

The factory expansion is only a part of the overall turnaround after backing was sought from investment professionals, Better Capital.

Since Better Capital came on board, Gardner has managed to attract £40 million in investment helping fund the new manufacturing facilities, new machinery and skills development.

Company directors estimate in the past four years, turnover has jumped from £50 million to £115 million and expect this to rise to £165 million in the next few years.

The launch of the new facility was a significant day not only for Gardner, but for the greater

manufacturing community in Derby. Officially opening the factory was Business Secretary Vince Cable, who last visited Derby when he was involved in business talks regarding the future of train manufacturing firm, Bombardier, when he said he felt “a sense of crisis” in the city.

“This factory is a very good example of what Britain needs to do to stay ahead of the rest of the world,” Cable said.

“Aerospace as an industry does very well but we need to get our share and for that we have to have good companies like Gardner and Rolls-Royce.

“Massive investment has gone into this place and it is a vote of confidence in Derby, which is very much at the centre of the industry.”

Bigging up Birmingham

I

Jane Gray swans about in the vice chancellor’s garden and finds out about Birmingham University’s applications of research and collaboration with business.

n surroundings more redolent of idle gentility than forward thinking technology and industrial innovation, David Eastwood, vice-chancellor of Birmingham University welcomed over 100 guests from business and academia to the last in a series of events to celebrate the institution’s contribution to STEM knowledge and competitiveness.

Mr Eastwood reminded us that for 2014, Birmingham is The Times and Sunday Times University of the Year, and that the paper now counts it as one of the most innovative universities in the UK. The Times award seems to have spurred an avalanche of awards for Birmingham, not least of which is attainment

by Birmingham Business School of the ‘Triple Crown’ accreditation from the Association of Advanced Collegiate, the Association of MBAs and the European Quality Improvement System. To complete a sort of ‘grand slam’ Aston Business School also recently received accreditation from the Small Business Charter.

When it comes to STEM research, Birmingham University has fingers in a lot of pies. It is building a new biomedical research facility and has invested heavily in research and facilities for quantum technology, nano-tech, advanced materials, formulation engineering, energy storage and robotics. Much of this investment has been facilitated by local and national partnerships with other universities and with the private sector.

One of the longer term partnerships Birmingham University is keen to highlight is its one with the Manufacturing Technologies Centre. And though some representatives of STEM faculties at Birmingham University admit they have been rather slow to optimise this relationship, they are now throwing themselves the establishment of a High Temperature Research Centre at MTC in collaboration with Rolls-Royce.

Read more about the University of Birmingham’s facilities for engineering research on p50.

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 23

Best of http://www.themanufacturer.com

I

n a busy summer period of major announcements affecting the UK manufacturing landscape, ’s website was awash with activity as an eclectic selection of stories caught the attention of readers. There was also the notso-small matter of the World Cup. Let’s take a look at what themanufacturer.com readers were looking at in June.

World in motion The 2014 FIFA World Cup is big business for its manufacturing sponsors. Just ask Adidas and Sony.

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T

he 2014 FIFA World Cup has seemingly dominated every facet of the sporting and news media this summer, and it appears themanufacturer.com isn’t immune to its charms.

The lure of the largest sporting event on the plant proved a strong pull for readers throughout June.

With global manufacturing giants such as Coca-Cola, Hyundai and Sony being among the tournament’s sponsors, the World Cup is a lucrative occasion.

Another sponsor, German sporting manufacturer Adidas, which supplied the official tournament football as well as 10 competing nations’ kits, has already emerged as one of the tournament’s big winners. On the financial front, it expects to make in the region of €2 billion at the conclusion of the tournament.

And it’ll also be guaranteed a presence in every single game of the tournament thanks to its Brazuca football, along with China, who didn’t even qualify.

That’s because the football kicked around by the likes of Messi and Ronaldo was manufactured in the Chinese city of Shenzhen.

Put together at the factory of Long Way Enterprise, the Taipei-based sports gear maker working with Adidas since 1997. Another sponsor under scrutiny was Japanese technology firm Sony. For the first time, three World Cup matches will be recorded in ultra-high definition, a format Sony hopes will revitalise flagging television sales. But viewers hoping to try the fourtimes-better-than-HD concept in a live match setting may be disappointed.

There won’t be any live streaming or broadcasts to the home, meaning anyone planning to watch the tournament on their new 4K set will have to make do with regular 720p channels. A case of technology moving too fast for its enablers, it appears.

Read more about Chinese production of the Adidas Brazuca football at bit.ly/ChinaWorldCup and Sony’s bringing Ultra 4k HD to the World Cup at bit.ly/UltraHDSony

24 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

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

Best of Online

Dunlop’s inexplicable closure Dunlop Motorsport ended 125 years of tyre manufacturing in Birmingham with the closure of its factory.

I

Juergen Maier, CEO of Siemens

n this time of positivity and growth, one of the more sobering realities of UK manufacturing was brought home by the Dunlop Motorsport’s decision to cease tyre production in Birmingham after 125 years.

The decision, resulting in 241 job losses, was lambasted by local MP Jack Dromey in an interview with . The Member of Parliament for Birmingham Erdington described the closure as “inexplicable” and said parent company Goodyear’s decision to shut the site represented a bitter irony of a world leader in motorsport no longer manufacturing tyres domestically.

“Goodyear Dunlop’s decision is inexplicable because our £9bn motorsport industry will now have to depend on imported tyres from all over the globe, in a decision made behind a closed boardroom door 3,500 miles away in Ohio,” said Mr Dromey.

Mr Dromey said he had spent two years looking for alternatives for Goodyear Dunlop to remain in Birmingham, with 12 potential sites identified with backing from the city’s council.

Despite incentives including competitive land pricing and relocation assistance, Goodyear Dunlop ceased operations in the city where it first manufactured tyres in 1889.

“We had nothing but support from the council and government from the Prime Minister down,” he said, with one of the sites confirmed as the

Advanced Manufacturing Hub three miles away in Aston,” he added.

Attention has now turned to securing new jobs for the 241 employees let go from the Erdington factory.

Dromey said discussions had been underway for some months to ensure new roles for its skilled and semi-skilled workers at the nearby factories of Jaguar Land Rover (JLR) and Dunlop Aircraft Tyres, which isn’t owned

by Goodyear.

And the MP, who was elected to his Birmingham Erdington seat in 2010, said he was confident Dunlop Aircraft Tyres was a good long-term option for workers in his constituency made jobless

by Dunlop Motorsport.

“Dunlop Aircraft Tyres is a good company, employing 500 people just yards from the motorsport factory and well led by its chairman Ian Edmondson,” he said.

“It has made it abundantly clear that it remains committed to Birmingham and Britain, and has the advantage of being both a good employer and not owned

by Goodyear.”

Read more on the closure at bit.ly/DunlopClosure

Utilising the UK’s hidden potential The UK needs to unlock manufacturing’s hidden potential if it to retain world leader status, says new Siemens CEO.

A

s the UK looks to rebalance its economy through manufacturing, then Innovation remains integral to this. Juergen Maier, the newly appointed CEO of Siemens replacing the retiring Roland Aurich, wrote for on the UK’s automation future.

Coinciding with the International Festival for Business in Liverpool, of which Mr Maier was an ambassador, he spoke of the hidden opportunities waiting to be discovered by UK manufacturers. Amidst a positive background of investment being recognised by government as key to keeping the recovery on track and, crucially, rebalancing the economy, Maier believes the private sector is also mobilising.

Highlighting Siemens and Associated British Ports pledging £310m to build the UK’s first purpose-built wind turbine production factory in Hull, generating around 3,000 thousand jobs in the region, it is believed the right infrastructure must be in place in order to attract higher levels of international investment. In order to achieve this, advancements in R&D, green technologies and utilising newer innovations such as additive manufacturing and automation must be championed.

“As a nation, we have fallen down historically by under-investing in industry, hence we are playing catch up with other powerhouses around the world, including Germany, Japan, the US and China,” said Maier. “We need to get better at deploying productivity-enhancing technologies such as automation in order to make manufacturing more competitive.”

Read the full blog from Juergen Maier at bit.ly/ManufacturingPotential

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 25

Better

together?

As Scotland’s decisive vote over independence draws closer, James Pozzi examines the pros and cons for manufacturing in the event of an independent Scotland.

T

he date of September 18, 2014 could prove to be one of the most significant in the 300-year plus history of the Union. For there is a genuine possibility that when autumn comes around, the United Kingdom, created by King James I as part of the Union Act of 1706, could be no more.

The campaign for Scottish independence has been a fixture of the political agenda for the past 18 months, being discussed everywhere from Westminster to the Vatican and beyond.

One of the key battle grounds fought by both sides of the vote has been in the field of Scotland’s economy. As a contributor, the spotlight has also shone on manufacturing. With more than 8,000 manufacturing companies employing 184,000 people, Scottish industry generated £12.7bn in 2013, accounting for around 12% of Scotland’s onshore GDP. But should the Scottish electorate return a ‘yes’ majority come September, the proposition of an independent Scotland brings with it a litany of intriguing scenarios. First Minister Alex

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Salmond, the architect of the independence movement, solidified his government’s intent for life without the UK by announcing his government’s plans for Scottish industry.

Scotland going it alone

The objective of the plan for the “reindustrialisation of an independent Scotland” is to increase its manufacturing by almost a third by 2030. The government says this strategy could see a 50% rise in exports and boost employment by more than 100,000 jobs. This would be underpinned by the creation of a Scottish Innovation Agency and a national Business Development Bank complimented by industry-friendly tax measures. The Scottish export market, which was last worth an estimated £26bn, would be aided by a new network of 70-90 overseas exports to boost trade as part of the proposals.

A host of retailers such as Sainsbury’s and banks including Lloyd’s and RBS have spoken out against independence, yet manufacturers have been less forthcoming in expressing their public views

Scottish Referendum

“Scotland’s wealth, talent and resources mean we have the potential to become a global hub for the industries of the future,” said the First Minister. “To achieve this requires a national mission where we come together as a country to reindustrialise Scotland for the 21st Century.” Salmond has also spoken of re-addressing the balance away from an unequal growth with other regions of the UK, furthering the decision making powers afforded to Scotland in the 1997 devolution.

But Salmond’s talk of manufacturing fulfilling its potential independently has been countered by the ‘no’ camp. Former chancellor Alistair Darling believes a split in the Union would create a barrier between Scottish manufacturers and their English-heavy customer base in sectors such as whisky production, while losing easy access to a single market of 63 million people.

The sound of silence?

But away from what has at times turned into political point scoring, it is the noises emanating from businesses with a presence in Scotland which shows an altogether more fascinating picture. A host of retailers such as Sainsbury’s and banks including Lloyd’s and RBS have spoken out against independence, yet manufacturers have been less forthcoming in expressing their public views. A high profile occasion of a view being expressed was defence giant BAE Systems siding towards the Union in its annual report.

“BAE Systems has significant interests and employees in Scotland, and it is clear that

Manufacturing accounts for

of Scottish onshore GDP

HOT TOPIC

Lower Block 04, the biggest hull section of HMS Queen Elizabeth aircraft carrier at 11,300 tonnes, is rolled out of the shipbuild halls at BAE Systems’ Govan yard on the Clyde

continued union offers greater certainty and stability for our business,” said chief executive Ian King. Employing more than 3,000 people across two Glasgow shipyards, BAE recently signed a deal with the Ministry of Defence to commence work on three new Royal Navy offshore patrol vessels in Scotland, which raised questions over future projects.

In the event of independence, it said it would work with governments to find the best solution, while the Scottish government says an independent country would still be able to bid for MoD defence contracts. It seems that the majority of companies - even ones which have spoken out on the issue have contingencies for either outcome in the referendum.

Apart from the aforementioned exceptions, there appears a widespread reluctance from the majority of Scottish businesses to discuss where their support lies publically. The Scottish Manufacturing Advisory Service conference, which took place in June, provided an illustration of the issue’s delicacy. While the event placed impetus on the growth of Scottish manufacturing rather than divert attention to the question of independence, one unnamed delegate described the issue as the “the elephant in the room.”

Bill Jamieson, executive editor of The Scotsman who has written extensively about Scottish independence, says business reluctance to discuss the issue derives from numerous factors. “It may be because they are genuinely unsure.

Or because they don’t like the online and social media vilification and abuse dished

out to those who have argued for staying with the Union, which has been quite intimidating,” he said. “I’ve noticed this reluctance across business conferences I’ve attended in recent months – most business people just do not want to show their hand on this issue.”

But there is a private feeling of business opposition towards independence, a notion given credence in surveys. An anonymous poll by the Scottish Mail on Sunday showed 36% of firms questioned would consider moving following a ‘yes’ vote, with 40% electing to stay.

Interestingly, just 15% felt an independent Scotland would be “beneficial” to their business, while 45% said leaving the Union would prove “harmful”.

A leap into the unknown

Whatever the stance, breaking with more than 300 years of stability will naturally bring a level of anxiety. Underlying concerns persist over Scotland being able to enter into a currency union with the UK, a notion already ruled out by Chancellor George Osborne with the backing of both the Labour Party and the Liberal Democrats. The issue of Scotland having to wait until 2019 at the earliest to re-enter the European Union as an independent country also refuses to go away. But backed by solid industries, a thriving Oil & Gas sector and the emergence of Scotland as a centre for advanced manufacturing innovation, the Scottish government has created a compelling argument.

With the decision pivotal to the future of Scotland’s awakening industry, the stakes are high by any measure.

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 27

sectorfocus Established as the world’s second largest aerospace sector, the UK industry continues to soar to new heights. But will it survive the long haul?

James Pozzi reviews.

I

t is often said that harder than getting to the top is staying there. Never was such a truism as fitting as when applied to the UK’s aerospace sector. As a UK manufacturing force bearing the fruits of sustained research and investment in the 1970s and 80s, the aerospace sector is at the very pinnacle of the country’s output, encompassing areas of civil, defence and space.

Second in the world only to the USA, the UK aerospace sector packs quite a punch It is attractive to foreign investment as well as having

secure domestic heavyweights and development infrastructure. Home to large scale operations for Rolls-Royce, Bombardier and Airbus, everything from plane parts to engine assembly within these shores has resulted in an industry generating £24.2bn annually and directly employing 100,000 people across more than 3,000 companies.

What’s more, the industry exports 75% of everything it makes in the UK; firmly establishing it as one of the country’s export champions.

The jewel in our crown

Described by Deputy Prime Minister Nick Clegg as the “jewel in our crown” in terms of its role in the UK economy, the

When fitted with Rolls-Royce engines alongside significant contributions from other UK suppliers, the 787 is 25% by value made by UK companies Sir Roger Bone, Boeing

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aerospace sector rode out the recession largely thanks to the robust infrastructure in place. Its role as both an employer and economy grower has led to a multitude of industry leaders increasing investment in UK manufacturing, investment which has trickled down to the supplier base.

The past 12 months have followed suit with further investment and job creation. There seemingly wasn’t a week that passed without news of multiple orders stretching into the millions and plant extensions to deal with growth demands. One of the biggest success stories has been Canadian firm Bombardier Aerospace, which bases its UK operations in Belfast.

Home to the building of its C-Series aircraft, the site saw a visit from Prime Minister David Cameron last October coincide with its announcement of an additional 250 jobs in the Northern Irish capital as a result of increased demand.

Coming just a year after it won an order for 100 Challenger Jets potentially worth $7bn (£4.5bn) – a company record, the site now employs 5,000 people and provides an illustration of aerospace as a job creator.

Besides the flourishing aerospace job market is the industry’s boundless strength in technology innovation.

Aerospace

A notable driver in this field is Derby headquartered Rolls-Royce (p38), the world’s second largest engine manufacturer. In June, the company saw its Trent 1000-TEN engine complete its first run with a view to entering into service by the end of 2015.

Set to power all variants of the upcoming Boeing 787 Dreamliner, as well as the A380 (p44) from Boeing’s great rival Airbus, its production in the UK is a large-scale example of technological domination and also of interlinked supply strength.

Boeing president for the UK & Ireland, Sir Roger Bone, says the aerospace giant’s UK activities have helped companies in its supply chain boom, citing Rolls-Royce’s work on the Trent1000-TEN project. “The Boeing 787 Dreamliner is a good example of this partnership,” explains Sir Roger. “When fitted with Rolls-Royce engines alongside significant contributions from other UK suppliers, the 787 is 25% by value made by UK companies.”

The two I’s: innovation and investment

Sir Roger also believes engagement between industry and the UK government will further cement the UK’s status as Europe’s largest aerospace sector, with areas of attention being addressed. “The

SECTOR FOCUS

The new Washington facility will have the capability to manufacture 2,500 fan and disc turbines a year

Inside Rolls-Royce’s new £100m North East discs facility Deputy Prime Minister Nick Clegg and business secretary Vince Cable both unveiled Rolls-Royce’s new £100m advanced aerospace disc manufacturing facility in the North East in June, marking further investment from the firm into the UK aerospace sector.

When fully operational in 2016, the 18,000 square metre facility in Washington, Tyne and Wear will have the capacity to manufacture 2,500 fan

and turbine discs a year.

These discs will feature in a wide-range of Trent aero engines including the world’s most efficient aero engine the RollsRoyce Trent XWB. The manufacturing capabilities of the site are impressive, with the introduction of robotics and automation for shot peen, painting and chemical processing operations as well as advanced platforms for machining, grinding, broaching and inspection processes.

This has reduced

partnership between the aerospace industry and recent UK Governments is a good sign for the future of the sector in this country,” he says. “For that future to be secured we are working with industry and the Government in the UK to push for greater investment in the research base in the UK and in the development of scientific and technological skills.”

His thoughts echo the industry consensus; the pace of innovation stands still for no one, and a combination of investment and longterm planning is seen as paramount

manufacturing time for discs by 50% while producing a stepchange in component performance.

There are two types of disc manufactured at the plant: fan discs and turbine discs.

Located at the front of the engine, the fan disc holds the fan blades, with typically 20 blades in each engine. They rotate about 2,700 times per minute and move 1.25 tonnes of air per second, the equivalent of the volume of air in a squash court.

to the advancement of UK aerospace.

Naturally, attention turns to the government in helping achieve this; from investing in skills and research centres to developing policies which make the UK even more attractive for foreign investment. And so far it appears government has risen to the challenge.

Following on from its launch of 2011’s Aerospace Growth Partnership, the government published its Aerospace Industrial Strategy in March 2013.

The outlined plan is underpinned by the Aerospace Technology Institute

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 29

Aerospace

The UK has 17% of the global market for aerospace.

It is supported by is the largest aerospace industry in Europe and second globally only to the USA

17%

(ATI) at Cranfield University, as a research centre, while setting out to invest £2bn in new technologies over seven years while securing up to 115,000 jobs. The ATI, which firms such as Airbus, RollsRoyce, as well as other major UK players including Messier-Dowty, AgustaWestland and GKN Aerospace, will look to exploit the potential of the civil aerospace industry, estimated to be worth $4.5trn globally by 2031.

While the will of collaboration between government and the industry’s big names is welcome for boosting GDP and job creation and security, eyes are also on foreign competitors picking up pace as the aerospace market becomes ever

SECTOR FOCUS

more lucrative. Competitor markets such as the USA and France remain, while emerging competitors including China and Indonesia have significantly grown their aerospace industries in recent years, something that is only set to continue.

But taking into account the innovation of the sector, defence and aerospace advisor Howard Wheeldon says the industry has a solid track record of rising to the challenge and moving forward. “In this industry technology has been proved never to stand still; challenges are always abound and year after year industry has risen to meet them,” he says.

Mr Wheeldon continues: “Who, I wonder, could have imagined twenty five years ago that further engine technology development would lead to a 40% cut in fuel usage by an average sized commercial aircraft over that period of time? Who would have thought twenty years ago that an aircraft the size and stature of the Airbus A380 with its 500 seats would be flying the skies, or that Boeing would have produced an aircraft in the form of the 787 that, in terms of technology development, cost efficiency and passenger comfort, would all but change the rules of the game?”

Future technologies

The opening of the new £100m Rolls-Royce site signifies further investment into UK aerospace

As one of industry’s genuine innovators, aerospace continues to be readily adopting new technologies at the research and development phase. UK’s aerospace R&D investment reached £1.4bn in 2012, which accounted for 12% of total spend across the manufacturing industry. This has been illustrated by companies big and small investing in research and engineering capabilities. Airbus opened its new engineering centre at its Filton site at

In this industry technology has been proved never to stand still; challenges are always abound and year after year industry has risen to meet them The Prime Minister visiting the Belfast site of Bombardier, which employs over 5,000 people

30 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

Howard Wheeldon

Aerospace

SECTOR FOCUS

The next generation Boeing 787-10 Dreamliner is set to further boost the company’s vast UK supply chain

the end of 2013, while Boeing supports the Advanced Manufacturing Research Centre (AMRC) in South Yorkshire.

Continuing the now commonplace trend of government-industry investments, June saw the announcement of a £45m project focused on developing new technologies for low-carbon aircraft engines.

Funding will be used for research and development to reduce carbon emissions by using lightweight composite materials to make Rolls-Royce engines. Research will also focus on changing parts of the engine design to make engines more efficient and reducing the time it takes to manufacture them.

The subject of composites is one that is set to gain impetus in the coming years.

The National Composite Centre, opened in Bristol last year which helped develop the wings for the Airbus A350, is just one of many specialist centres set up in recent years to address this. Also on the UK’s agenda is investing in Unmanned Aerial Systems (UAS), enhancing its status in the design and manufacture of wings and engines and developing short range aircrafts up to 2025.

of the aerospace industry’s revenues are exported overseas

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As one of industry’s genuine innovators, aerospace continues to be readily adopting new technologies at the research and development phase

Another next generation innovation being adopted by aerospace is the Internet of Things and other Big Data technologies. General Electric, which champions the Industrial Internet, has employed this over many of its operations including in its aviation arm. Seen as a new industrial revolution, it is driven by advances in sensor technology, connectivity and data analytics.

The American giant has also drawn upon devices such as Google Glass to aid its factory floor processes in California, giving a glimpse into the tools and software devices that could further transform industry over the coming decades. Used for a non-destructive test on a GE 90 engine, GE hopes the prototype will yield greater efficiencies in its production maintenance.

Coming soon to an aerospace factory in the UK? Who would be surprised?

Flying forward

Ongoing investment in innovation remains paramount if the UK is

to continue its reputation for excellence in areas such as aerodynamics, propulsion, aero structures and advanced systems. Its extensive supply chain remains very well integrated, with the infrastructure making the UK an attractive market for continued investment from overseas.

But there are concerns.

The unwelcome industry bedfellow; the skills shortage is also affecting aerospace. While the UK can genuinely boast of having some of the most advanced facilities and sharpest minds in the industry, there simply needs to be more of them. With women only making up 9% of all UK engineers, there is a consensus that aerospace is particularly under served by a female presence. It is hoped initiatives such as the National Aerospace Technology Exploitation Programme led by the Aerospace Growth Partnership will help address skills shortages.

Any derailing of the UK as a world leader in aerospace would be particularly cruel, as future demand is set to escalate globally. Last year’s Global Aerospace Outlook report commissioned by ADS predicted UK orders over the next 15 years could reach £474bn as a result of 27,000 new large civil airliners and 40,000 rotor aircraft. With the often mind-bogglingly high numbers only set to accelerate higher, it seems every move necessary from both industry and government is being undertaken to propel the UK’s already world leading status to new heights.

The core of engineering based manufacturing

MTA SUPPORTS UK AEROSPACE MANUFACTURING

The Manufacturing Technologies Association (MTA) supports members in the UK aerospace manufacturing supply chain.

Visit us in Hall 1 Stand B9 at the Farnborough International Air Show 14-18 July and discover what the MTA could do for your business.

For more details call 020 7298 6401 or email info@mta.org.uk

The Manufacturing Technologies Association

www.mta.org.uk

Airinmar reaches new heights Staying in touch internationally is essential for companies like repair-management specialist Airinmar. As a global organisation providing vital repair services to airlines around the world, it must be able to share information securely at home and abroad.

Reliable mobile connectivity helps ensure that staff are always available to customers – and each other – around the clock. It also means employees can log on to Airinmar systems to track and report on the progress of repairs in real time, wherever they are.

A truly global mobile network even gives the sales team a stronger platform for winning new business.

In the past, travelling to deliver presentations on tablets and mobiles generated huge data bills and often resulted in coverage issues. But now, the team can easily access documents during client meetings without delays or worrying about costs.

The Truphone difference With excellent call quality, fast data speeds and low rates, Truphone’s pioneering global network is helping staff make more informed decisions faster, while reducing costs by at least 50 per cent.

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

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

“Truphone is a global communication system which is truly unified and it is saving us over and above what any other company could.”

David Clarke, Management Information Services Manager, Airinmar

Find out how Truphone can help you By phone: +44(0) 203 006 4300 By email: business.uk@truphone.com truphone.com/manufacturer

© 2014 Truphone Ltd. All Rights Reserved. 90466443.

Final frontier

Britain’s space industry is vibrant and fast-growing. But it faces some tough challenges, reports Malcolm Wheatley.

Dr Susan Jason working on STRaND-1 during final assembly phase Credit: SSTL/Surrey Space Centre

I

n the early evening of June 19, a Russianbuilt DNEPR rocket climbed into the skies above Russia’s Yasny commercial launch complex. On board: KazEOSat 2, a medium-resolution Earth observation satellite owned by the Republic of Kazakhstan, heading for a 630 kilometre-high sun synchronous orbit. Once there, it would begin its task of delivering

multi spectral images for agricultural and resource monitoring, disaster management, and land-use mapping.

For Guildford-based Surrey Satellite Technology, KazEOSat 2 is merely the latest in a long series of successful satellite launches dating back to 1981, and the firm’s early days as part of Surrey University. Now part of Airbus Group, it’s a British success story that designs, manufactures and operates high performance satellites and ground systems, with 600 staff working on turnkey satellite platforms, space proven satellite subsystems, and optical instruments.

Space hardware is typically put together in Class 100,000 cleanroom conditions, with science missions having even more demanding particulate limits Simon Taylor, Airbus Defence & Space

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Nor is Surrey Satellite Technology alone. Chelmsfordbased E2V (the name being a nod to its original roots as English Electric Valves) is a FTSE 250-listed global leader in space imaging, with its technology providing the crucial multi-spectrum cameras on board missions such as NASA’s Hubble Space Telescope and Kepler missions, the Mars Reconnaissance Rover, and the European Space Agency’s GAIA mission.

Overall figures published in January showed the UK’s space industry is currently worth £9bn, supports 30,000 jobs, and has been steadily growing by between 7-10% a year. No wonder that David Willetts, Minister for Universities and Science, has deemed the country’s space expertise to be “one of Britain’s eight great technologies”, and that just-published government plans envisage the UK’s space industry tripling in 20 years.

Reliability is paramount

Yet behind the figures and headlines, manufacturers working on the front lines of Britain’s space industry face some tough challenges.

Most notably, of course, space is both an unforgiving and remote environment. So in addition to building highly complex pieces of engineering that must meet demanding performance requirements, the industry knows that once the rocket has left the launch pad,

UK Space Industry

A few years back, we had a quality problem that we couldn’t understand. It turned out to be caused by cleaners, in the evening, polishing handrails on stairs Steve Whigham, E2V

then satellites and interplanetary probes have to work reliably for the duration of the mission, and can’t be repaired.

What’s more, a space mission can’t necessarily be subject to the same delays as have famously hit defence contractors and civil aviation manufacturers in recent times.

“There’s a keen focus on schedule adherence, because you’re working to a very narrow window - especially in the case of interplanetary missions, where the planets will only be correctly aligned for a very short time,” says Guy Beutelschies, project manager overseeing the Lockheed Martin-built MAVEN probe, launched from NASA’s Cape Canaveral on November 18, 2013, and due go into orbit around Mars on September 22 this year.

Moreover, he notes, science spacecraft such as MAVEN, being oneoffs, are far more custom-made than commercial communications and earthimaging satellites.

Tight tolerances

So how does the industry meet these challenges? The answer, say insiders, lies in setting demanding standards of cleanness, rigorous adherence to specifications, and exacting performance testing.

“Space hardware is typically put together in Class 100,000 cleanroom conditions, with science missions having even more demanding particulate limits,” says Simon Taylor, lean deployment leader at Stevenage-based satellite manufacturer Airbus Defence & Space (formerly Astrium). “ESD strapping is worn at all times, and there’s an absolute focus on eliminating foreign bodies or contaminants that might jeopardise the integrity of the hardware and the mission.”

What’s more, space manufacturers must be aware of the mission-endangering possibilities of even the most everyday materials they use. E2V, for instance, must buy copper in the form of a specific E2V-specified alloy, says Steve Whigham, global operations director at E2V. Ordinary copper, it turns out, gives off gases, as do other commonplace materials such as the plastics used in cable ribbons.

“A few years back, we had a quality problem that we couldn’t understand.

It turned out to be caused by cleaners, in the evening, polishing handrails on stairs,” he adds. “Operatives would brush against the handrails, pick up traces of polish, and that was enough to affect the devices that they were working on.”

There’s also, adds Airbus’ Taylor, a fixed focus on using construction techniques, components and subassemblies known to be ‘space qualified’. Simply put, if something is up there now, and operates without issue, then it can be regarded as fit for space. Which means, says Taylor, that no matter how compelling a supplier’s innovation - be it innovation of manufacturing process or technology the industry will be leery of it until it has flown and operated in space.

“Some customers are very insistent on this,” he notes. “Even if you can demonstrate that something works on the ground, they won’t sign the contract until we can prove that the device or technology in question has space heritage. As a result, we sometimes have to fly piggyback missions, or use something in a role for which it is over-qualified, simply to get that space heritage.”

Lockheed Martin’s Beutelschies agrees. “Especially when building ‘oneoff’ science spacecraft, there’s a lot of use of heritage, because it’s The UK’s seen not only space industry as a way of is currently enhancing worth reliability, but also helping with cost control and schedule adherence,” he adds.

Throughout the recession, and since, the industry has grown by between

SECTOR FOCUS

Bug detection

An added complication is the extensive use of software in a typical spacecraft - software that again will be largely unique in one-off scientific missions, as opposed to commercial satellite communications missions.

And once more, British firms are at the forefront of the software validation processes that must take place, and which are designed to trap any software bugs before they compromise the mission.

“Our job is to carry out an independent check that what has been built is what has been specified, and that any ambiguities in interpretation are caught in plenty of time,” says Ian Hodgson, business development manager for aerospace and space at Southamptonbased Critical Software Technologies.

“Long experience shows that the people who’ve built something aren’t necessarily the best people to test it: you tend to see what you expect to see. And if a spacecraft is in the wrong place, or moving at the wrong speed, then all that science, and all the effort involved in building and launching it will have been wasted.”

Flying above you, as you read these words, may well be one of the European Space Agency’s Sentinel earth-imaging spacecraft. In the right place, and moving at the right speed -thanks to scrupulous software validation by engineers at Critical Software Technologies.

supports

jobs, and government plans envisage it tripling in 20 years a year. www.themanufacturer.com 37

Dr Hamid Mughal, manufacturing director at Rolls-Royce, shares his passion for his sector and sets out his unfinished business in shaping its future.

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D

o you have a dream for the future of manufacturing? A vision of how processes and technology should work in your utopian factory?

Hamid Mughal does.

Rolls-Royce’s director of manufacturing has 28 years in industry under his belt and has led many changes both in the companies he has worked for, and across British industry as a whole.

But he’s not satisfied. He has unfinished business.

“I am totally dedicated to developing knowledge based adaptable manufacturing excellence,” he asserts.

“People talk a lot about labour cost and productivity but for me the hidden cost of ‘non-quality’ in manufacturing offers the biggest opportunity for achieving true excellence.”

Getting into his stride, Dr Mughal elaborates keenly. “If we can go to the Moon, or to Mars and back, why can’t

we make manufacturing so fool proof that inspection becomes yesterday’s norm?

“Why can’t our systems sustain and self-correct themselves in a way that always creates the right product to the right specifications?

“This is what I absolutely yearn for and I do not think that we are that far away from it.”

Mughal senses a manufacturing revolution in the wind that will radically change the way the sector is understood and operates in the next 30 years.

“Relatively speaking the changes we have seen in manufacturing over the past 40 years have been gradual. This won’t be the case going forward.” he says.

Mughal’s knowledge based adaptable manufacturing vision will require a swathe of leaders to embrace concepts and technologies for a new approach to competitive advantage.

“This will require the integration of manufacturing knowledge and systems

Dr Hamid Mughal, Rolls-Royce

INTERVIEW

Hamid Mughal’s career highs and lows Worst: In the eighties I worked on the development of automation systems using electro-optical inspection technologies and robots.

Due to a lack of industrial maturity at the time I put so much focus and emphasis into developing the technical capabilities and specifications and underestimated the need to engage with the shop floor. As a result, despite a lot of time and investment, the project was almost a total failure – the systems were ahead of the technical capabilities of the people and they did not feel involved.

That taught me a lot about the people aspect of manufacturing.

The best processes and technology will not work unless people are on board and adequately trained to embrace them. I have not made the same mistake twice.

Best: There have been so many good moments, from the opening of new factories, introduction of new technologies and the launch of internal organisations which I have taken from low capability to best in class performance.

But a very prominent thing is my contribution to the establishment of the High Value Manufacturing Catapult. It has been a story of world class teamwork and it fills me with pride that we were able to deliver on such a compelling vision. It means so much because the HVM Catapult addresses an historic national problem in failing to support the commercialisation of research and technology. Its impact and legacy will reach right across British industry. from the product master model to the shop floor, with everything connected to the master model in real time, self-correcting and adjusting itself accordingly,” Mughal enthuses.

“This would make the world of manufacturing so different. It would free people up from the mundane shop floor monitoring activities to developing the next generation of processes, technologies and systems.”

Chasing challenge

A desire for increased recognition for manufacturing burns strongly in Mughal, but don’t be fooled into thinking that he is letting passion rule without logic or a clear appreciation of the challenges involved.

“At heart I am a deeply technical guy,” he admits, and one that is a slave to the constant technical challenges involved in getting manufacturing to work at its optimum potential.

“That challenge is what first made me want to go into industry,” he explains.

“My early career soon showed me that what makes scientific sense in theory, or what can be demonstrated on a lab bench, often doesn’t translate precisely or consistently in the manufacturing world.”

This is because the manufacturing environment is a mesh of variables

including; people, process, environmental, input, supply chain and cultural variables.

“Optimising manufacturing performance in spite of these complexities is a huge challenge and one that excites me,” Mughal sums up.

For society

Having caught the manufacturing bug, Mughal’s devotion and reverence for his sector has grown and grown.

He has become a fervent advocate of its manifold economic and social benefits and a key influence in the rehabilitation and nurturing of Britain’s industrial landscape. He was at the centre of the establishment of the Advanced Manufacturing Research Centre and the Manufacturing Technology Centre and of the process which saw these institutions become a part of the High Value Manufacturing Catapult (see highs and lows box).

It’s the social impact of manufacturing in particular that animates Mughal.

“As I matured my thinking about manufacturing and gained experience in industry, I realised that while the capital value of manufacturing is widely recognised and appreciated – in terms of its ability to generate economic output – its social value is hugely underestimated.

I have come to revere the national resilience, sense of fulfilment, skills, pride, community spirit and security of supply in a changing world that a strong manufacturing sector can bring. I value this probably more highly than the economic capital but it is generally not talked about

“I have come to revere the national resilience, sense of fulfilment, skills, pride, community spirit and security of supply in a changing world that a strong manufacturing sector can bring. I value this probably more highly than the economic capital but it is generally not talked about.”

Mughal got his chance to bring this misrepresentation to the fore when he was invited to be an industrial representative on the Lead Expert Group involved in the Foresight report, Future of Manufacturing.

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 39

Dr Hamid Mughal

There are three things in particular that I learned in the automotive sector that still form the basis of my thinking about manufacturing today “It was an ideal opportunity to express my views about the true value of manufacturing and it was gratifying that my colleagues involved in the report agreed that outdated metrics for manufacturing do not truly reflect its value.”

When it was finally published in October 2013, the Foresight report received high acclaim as a rounded representation of manufacturing, including a range of activities stretching far beyond the narrow window of production. The report was also widely welcomed as a long term reference for competitive and technological progress.

“Normally there is a pretty jaundiced view about the relevance of such reports – there are so many – but this one seems to have hit the right note and many in industry say that it has done justice to the subject,” says a proud Mughal.

The day job

With all this extra-curricular activity it’s hard to believe Mughal has had time

40 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

to focus on his day job at Rolls-Royce, but in fact nothing could be further from the truth.

Mughal is a hard worker extraordinaire – something he says was nurtured in his time working in the automotive sector – and his career with one of the biggest names in British industry has run concurrent with some significant developments for its manufacturing function.

Since Mughal joined Rolls-Royce its global footprint has developed significantly, new standards and processes have been introduced and product innovation has advanced apace.

Between 2004 and 2008 alone eight new factories were built.

Whilst contributing to this physical investment, Mughal has also led a cultural investment in manufacturing, making it a more prominent and appreciated part of the broader professional spectrum of capabilities in Rolls-Royce.

He has also brought a new culture to manufacturing processes themselves, sensitively deploying knowledge about lean production learned from his early days in automotive – a time which he says has “left a big mark on” his career.

“There are three things in particular that I learned in the automotive sector that still form the basis of my thinking about manufacturing today,” he says.

The first is to think of standardisation as an enabler for innovation – not a constraint. “The automotive sector’s track record in using standardisation as a basis for continuous innovation in better and more cost effective products is more radical than any other sector,” says Mughal.

“Secondly, I learned the difference between complexity and variety. The automotive sector mastered this during the eighties and it is so important to successful, competitive manufacturing.”

In simple terms, Mughal describes variety as what the customer pays for and complexity as the hidden, overly intricate engineering that the customer does not perceive and which has no intrinsic value to them.

“Finally, and this perhaps outweighs the others, is work ethic,” concludes Mughal. “The obsession with takt time in automotive companies drives hard work and agility.”

Mughal was headhunted by RollsRoyce to bring this perspective into its

INTERVIEW

manufacturing operations and he says he has never regretted his decision to move away from the automotive sector.

“I was attracted because deep down I am still a technical guy really and the lure of the product technology, the heritage and markets associated with Rolls-Royce were really exciting – it’s a brand many would give an arm and a leg to work for,” adds Mughal.

Global outlook

There’s a lot of news and statistics spouted about the strength of the global aerospace sector today – particularly civil – and the UK’s market share of all that entails (p28).

Is this level of success sustainable?

Mughal says yes and this is why: “In the civil sector, predicted air traffic will more than double in the next 20 years.

“At the same time, the rising cost of oil means that fuel will become a larger and larger part of airline operating expenses and this will increase pressure on fuel efficiency.

The pressure will require innovation in technology and that will drive for more challenging manufacturing.”

But does the UK have enough capability in its supply chain to support Rolls-Royce as it seeks to rise to these technology and production challenges?

“There will come a point when, due to the sheer growth, potential industry consolidation and rate of new product innovation, we will push castings suppliers and tool makers for example to the limits of their capability and capacity,” acknowledges Mughal.

“But we are a global company with a global supply chain,” he continues.

“We are not just reliant on the UK. We will always work with our suppliers to ensure we get mutual benefits from improving productivity and cost effectiveness, but in the end our dedication to our customers means that we must pick the best of the global supply chains to work with.”

Making the imperative for the supply chain clear, Mughal concludes, “The UK supply chain is important to RollsRoyce but it must keep working on its efficiency and productivity just like everyone else.”

Dr Hamid Mughal was recently nominated to feature on ’s Top 100 list 2014. Find out more about this project at bit.ly/TMTOP100.

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6Osecond Mike Patton, general manager, GE Aviation Wales

interview

Mike Patton General manager, GE Aviation Wales

Mike Patton, general manager at GE Aviation Wales, talks to about the company’s 2013 Manufacturer of the Year Award win and how it has since built on this success. : GE Aviation Wales won Manufacturer of the Year at the 2013 awards.

How has receiving this accolade helped the company in terms of wider recognition?

We were delighted to be awarded the prestigious title of Manufacturer of the Year. It was an absolute pleasure to be able to be there in person to accept the award on behalf of the entire team at GE Aviation Wales. The award win helped us to further raise our profile in Wales and significantly raised our profile in the manufacturing industry across the UK, helping us to further enhance our reputation as a leading aviation business.

We also enjoyed some really great PR on the back of the award win, which was great recognition for the whole team. : Do you think winning our top prize helped to promote the strength of UK aerospace and GE’s role in sustaining that?

The UK aerospace sector is one of the largest in the

world and many businesses contribute to this success.

Winning the top prize further enhances our reputation in the aerospace sector in the UK and beyond. Award wins like these help to further cement the importance of the aviation sector in the UK and showcases how the UK is a major player in the global aviation industry. : What would your advice be to any company considering entering the 2014 awards?

I strongly encourage all manufacturing businesses to enter The Manufacturer Awards. My advice would be to make sure you take the time to gather plenty of evidence to demonstrate what you do and showcase why your business deserves to win. Make sure you stand out from your competitors and use data where possible to back up your application form. Focusing on key areas like people and skills, innovation and business growth will help you tell your business story.

Even just entering the awards and being shortlisted can help enhance your business reputation and furthermore an award win recognises the efforts of your workforce and can really help boost employee morale. Finally, don’t shy away from really selling the great things your business does. Shout about it! : GE Aviation was also awarded the People and Skills prize. How have you continued to develop and engage with your workforce during the past six months?

It takes great people to get the ‘people and skills’ award and we have that at GE Aviation Wales. Our culture is all about providing everyone who works here with the opportunity to exercise their responsibility, integrity and creativity whilst growing themselves and their careers. Over the last six months we have continued to support the development of our workforce.

Our middle management and leadership team are currently undertaking ILM qualifications and a number

42 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

of employees from across various parts of the business have studied additional accreditations and ILM qualifications with local training provider, Chawarae Teg. We continue to invest heavily in training to develop our employees’ capabilities and we realise the benefit of having a multiskilled workforce. : With skills a pressing issue for UK manufacturing, what do you feel is the best approach to attract young talent into aerospace manufacturing?

If we look around today at the types of companies we have on our doorstep, I believe the UK has something positive to shout about. We have a wealth of technical skills and knowledge, as well as a strong history of innovation. I believe talent development is key to the future of manufacturing. By harnessing UK employees’ technical abilities, and developing strong skill sets, I believe we can have a competitive position and further enhance the UK’s reputation as a key place to trade. Programmes like apprenticeships, internships and graduate traineeships are instrumental to help develop the workforce of the future. I believe that interacting with schools and engaging young people in STEM subjects from an early age is vital to ensure we stimulate a continued interest in STEM as they move up the education ladder. It turn, this encourages them to make subject choices that will put them in good stead to pursue a STEM related career in the UK engineering and science industries.

APEX SUPPLY CHAIN

The Best Practice of Automated Dispensing in the Aerospace Industry

Point of work availability and automated management of calibrated and certified tools

T

wo of the most challenging characteristics of airframe manufacturing and aerospace component manufacturing are the large facility footprints resulting in lengthy travel time to access parts, equipment and supplies; as well as the need for precision-quality-control, audit trails and repeatability. Historically the large footprints combined with the manual processes used to supply parts, materials and equipment were a drain on efficiencies, productivity and profitability.

Automated dispensing by Apex, also known as industrial vending, addresses these challenges through a secure,

Top Aerospace items used in Automated Dispensing

Electrical 22% Abrasives 4% Office Supplies 5% Cutting Tools & Metal Working 11% Chemicals & Paints 10% Tools & Equipment 17% PPE & Safety 31% Source: Apex Supply Chain Technologies, Ltd.

Cloud-based technology platform and automated Point-of-Work systems ensuring that the right tools, parts and components are readily available when and where they are needed. The benefit of a controlled, automated, Point-ofWork system is a dramatic increase in productivity because workers have what they need in close proximity to where the job is done eliminating the lengthy amounts of time walking to the supply room, waiting in line for the supplies or searching for the tools, parts, and equipment they need.

Lost tools have been a significant problem since the beginning of aerospace manufacturing. Not only are they costly, they can be deadly. Foreign Object and Debris/Foreign Object Detection (FOD) prevention is a serious business.

The patented Apex Trajectory Cloud system provides electronic audit trails, documenting each transaction and provides visibility to compliance standards (where was this tool used, who used it and when, when was it certified or calibrated, and if it was returned). The system can also send email alerts to a manager identifying the missing tools at the end of shift, which employee(s) checked the item out, helping workers to assume more accountability for these critical tools.

The resulting benefit of the Apex systems have eliminated the FOD concern and have historically brought loss rates down to zero. Because of the precise access control the Apex systems

provide, coupled with the accountability created through the automated system, UK manufacturers can have absolute confidence that the right items were used and that all items and tools were properly certified, calibrated as specified and safely returned after use.

Apex Trajectory Analytics platform provides visual decision support tools that make it easy for managers to see trends and patterns, identify optimisation opportunities for cost savings and productivity improvements. By automating the supply of mission-critical and commonly used items through industrial vending devices strategically positioned at the Pont-of-Work, employees waste less time walking to the distribution point and increase the number of hours spent on task. When adopted throughout the entire enterprise, the technology can quickly lead to immediate cost savings and a dramatic improvement in overall activity.

Globally, with the strong emphasis on Lean manufacturing, the trend towards automated systems has been accelerating in the aerospace industry.

Adoption of automated, Point-of-Work technology by aerospace manufacturers has reached a tipping point. No longer is automated dispensing a new concept or idea. It has become a best practice in hundreds of Lean and Six Sigma airframe and aerospace component manufacturers around the world. Rolls-Royce, GE, BAE Systems, Pratt & Whitney and hundreds of other airframe and component manufacturers are using automated Point-of-Work solutions to manage both consumables and mission-critical assets ranging from safety and PPE items, fasteners, and assembly components to complex asset management of calibrated and certified tools. Apex has created the next generation of secure, Cloud-based technology that makes it easier to use, easier to implement and far less expensive than previously available solutions. Talk to your supplier about the possibilities, and ask about automated dispensing solutions from Apex. www.apexsupplychain.com

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 43

’s Callum Bentley took off to follow the incredible logistical process of bringing together the components of the world’s largest commercial airliner – the Airbus A380.

I

t’s a sight I wasn’t expecting. Yes, I knew an Airbus A380 wing was going to be rather large. What I didn’t expect was to see it striking the lonesome, yet enormous figure it did perched beside a paddock full of cows in Broughton in the north west of Wales.

I was in Broughton to see the wing down its 35km journey along the River Dee to its port of call in Mostyn.

Here the wing would be loaded onto an Airbus-branded ship liner (or roll on-roll off ships, as Airbus calls them), measuring 155 metres long and 24 metres wide.

This would be the first part of my journey following the transportation of the giant components before I would be reunited with them once they made landfall, along with the other components in the south of France just outside Airbus HQ in Toulouse.

But first I would prepare my sea legs as a 90-wheel, remote-controlled vehicle shifted the massive, 33 ton wing from its bovine-neighboured resting place onto a purpose built barge designed to lug the wing to Mostyn. It’s by no means a fast process, with tides playing a crucial factor in not only lifting the entire vessel off the sea bed, but

44 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

also whether or not the precious cargo will fit under the numerous bridges en route. It turned out today would be a first for the crew sailing the barge.

Small sea scanners which constantly examine the wing’s route up the river had discovered a new channel which would now be able to accommodate the massive payload and would save the crew more than 45 minutes in travel time and fuel.

The movement of the wings is only one of the many sea journeys the individual A380 components make.

Each roll on-roll off ship (three in total) follows a specific route sailing to the ports serving the Airbus plants located in Broughton, Hamburg, Puerto Real in Spain and Saint-Nazaire in France.

The total see-bound journey of the components is about 2000km.

At the same time the wings set off from Mostyn, the “City of Hamburg” ship leaves Hamburg with the rear part of the fuselage and continues to Saint-Nazaire to load the other parts of the centre and forward fuselage.

Loaded with all the aircraft fuselage, the boat then sails to Pauillac to deliver its cargo where it is transferred to a floating pontoon located on the Gironde

estuary. Meanwhile, the remaining two ships, the “Ville de Bordeaux” and the “Bore Sea”, sail to the ports of Naples in Italy, Cadiz (Puerto Real) in Spain and Saint-Nazaire, before continuing to Pauillac, loaded with the horizontal tailplane and the sub-assemblies of the fuselage and the aircraft floor.

There, two barges take over from the roll on-roll off ships to transport these components 95km up the Garonne River to Langon. Four return journeys are required between Pauillac and Langon to ship all the aircraft components. The rate of about 30 journeys per year in 2004 has increased to more than 100 in 2013.

A sight to behold

The last step of the transport is done by road and is something monumental to behold. The six components delivered to Langon leave the local logistic base on trucks, taking the “’itinéraire à grand gabarit” (ITGG) to the “Jean-Luc Lagardère” final assembly plant in Blagnac.

The convoy, consisting of six sets of trailers with their lorries, travels only by night in three stages: to Eauze, to l’Isle Jourdain and finally to the final

A380 wing move

Special Feature

Airbus A380 by the numbers Max seating capacity of 853 people

The average catalogue price for an A380 is

Parts are produced by

An A380 consists of about

Million

individual components

assembly line in Blagnac. The lorries and trailers have been specially designed for transport on the ITGG. The convoy travels 240km at a speed of 10 to 25km/h and stops to wait during the day at the end of each stage on specially made parking areas.

The Langon-Toulouse section passes through 21 towns and villages and is escorted by the police who close 15km sections allowing the convoy to progress and to ensure the safety of the users.

A complete convoy can be up to 2000 metres long (accompanying vehicles included) and involve around 60 persons (transport service, police and security forces).

It was in the tiny village of Levignac during the final stages of the move that I really understood the impact

A complete convoy can be up to 2000 metres long (accompanying vehicles included) and involve around 60 persons

companies from countries

this amazing aircraft has had not only on international flight, but on the imaginations of people both young and old. The convoy makes its way through Levignac up to three times a week under the cover of darkness. Yet still people come out in droves to witness the gargantuan scale of the move as it inches its way through their once sleepy village and onto the final assembly line in Blagnac, 10 years after it made its maiden voyage.

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 45

Originating more than 1,000 years ago, the Royal Mint is Britain’s oldest manufacturer and the world’s largest exporter of coins. takes a tour around the factory to learn about the progress of the site and production of the new one pound coin.

S

et against a backdrop of sprawling hills in Llantrisant in South Wales, the Royal Mint has been producing coins since the time of Henry I. Since moving its operations from Tower Hill in 1968 in readiness for the introduction of decimal coinage, the Mint has operated on a single site in Pontyclun since 1980.

The Mint, which operates around the clock, is own by HM Treasury and security of the 35-acre site is overseen by the Ministry of Defence Police.

The Mint manufactures military and commemorative medals, including the production of the medals for the 2012 London Olympic Games.

Plenty of change

The Mint has been undergoing changes of late, firstly in the adoption of lean manufacturing principles. Leighton John, head of production and operational excellence told : “Having attended a Shingo conference we were inspired.

We have a very passionate and proud workforce and we wanted to tap into that pride and passion.

“The 2012 Olympics was a major catalyst for improvement, we were so busy making the medals and had to make sure the programmes were delivered at the highest standard.

46 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

“We realised that leadership was key, there seemed to be a void around leadership. We started to create an environment allowing individuals to use their skills and resources.

“An environment where managers didn’t micromanage and staff learned from their mistakes. If I see a gap in improvement, it’s a chance for me to support the people.

“We have removed waste in several ways, for example a few years ago we avoided capital investment in machinery by getting our engineers to adapt our existing machines.”

While touring the factory and the offices, it became clear that continuous improvement was a truly embedded way of working at the Royal Mint.

Accountability boards are a regular

We realised that leadership was key, there seemed to be void around leadership. We started to create an environment allowing individuals to use their skills and resources

The Royal Mint

iSIS is the work of the Royal Mint’s in-house technology team and involves the application of an existing security technology proven over decades in banknotes

feature across the site providing all members of the workforce with realtime visual indicators of where the problems are.

There have been major changes since the 90s, Mr John said: “Management used to sit on this floor and no one apart from managers came up here [to the senior management offices]. Now we are all integrated and all doors are open all the time.”

In for a penny, in for a pound

And the changes are not about to stop.

Chancellor George Osborne announced in this year’s Budget that the UK will embrace a new £1 coin in 2017. The government hopes the introduction will curtail counterfeiting and has worked with The Mint to ensure the new design pushes the envelope for coin security. According to the Royal Mint 3% of existing £1 coins are fake, with counterfeiting operations taking place predominantly in the UK and some in the Netherlands.

Dr Phil Carpenter, director of operations, told : “Internally, there has been a very positive reaction to developing the new coin.

“But there will be a public consultation very soon focusing on any impacts before the final decision is made on the precise specification of the new coin, including the metal composition.”

What is known, is the proposed twelve-sided shape, reminiscent of the pre-decimalisation three pence piece.

The coin is reported to be made from two different coloured metals and will contain an iSIS security feature.

Dr Carpenter added: “Integrated Secure Identification Systems enable the whole cash cycle to be more secure, protecting the public, vending machine operators and the wider banking system. “iSIS is the work of the Royal Mint’s in-house technology team and involves the application of an existing security

FACTORY VISIT

Opening doors In addition to continuous improvement strategies, the Mint has been making plans to raise the profile of its brand by announcing in April the opening of a visitor centre funded by the Welsh Assembly Government.

The centre will allow members of the public access to the people and processes that create the coinage used by the masses.

The development will be funded by a £2.3million Welsh Government grant, contributing to the total £7.7million cost of the project.

Shane Bissett, director of commemorative coin and bullion at the Royal Mint, said: “The Royal Mint is a highly secure, Ministry of Defence-protected site which is not usually open to the public, with the exception of very special occasions and by invitation only.

“We receive large numbers of requests to visit from members of the public every year and have been exploring the opportunity of a visitor centre for some time.

“It gives us great pleasure to announce that this can now go ahead, and that people will be able to come here and see the work of one of Britain’s national treasures.

“The visitor centre will enable us to take people behind the scenes of over 1,000 years of coin making history, to demonstrate our long-standing heritage and craftsmanship, and the innovation that harnesses state-of-the-art technology to achieve the highest standard of minting.

We supply circulating and commemorative coins, as well as medals, to more than 60 different countries and as such we believe the new centre has the potential to draw visitors from all over the world.”

After the funding announcement, tourism minister Edwina Hart said: “The new visitor centre will be an all year and all weather visitor attraction showcasing a unique product and global brand and will incorporate a rich heritage resource alongside a live factory working environment.”

900 staff members Produces up to 90 million coins and blanks a week or nearly

a year

technology proven over decades in banknotes. “It is the first time this existing security has been successfully embedded into coins.”

The Mint is the world’s largest exporter of coins and in the past has supplied numerous countries from Algeria to Venezuela with blanks and coins. The Royal Mint’s main competitors are the Royal Canadian Mint, which is active in the overseas market, and more recently the Mint of Finland.

In the Mint’s most recent developments, it is releasing a limited edition precious metal £1 coin bearing the flora of Scotland, continuing the themed series that started in 2013 with the England and Wales floral coins.

As we approach the first birthday of Prince George, the Mint will strike a commemorative, sterling silver £5 coin bearing the heraldic Royal Arms design.

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 47

Positioning for growth series

The time to servitize

T

he evidence is in - manufacturers that adopt a servitization strategy can achieve higher business growth. Earlier this year results from the Servitization Impact Study produced by Aston University and manufacturer Xerox showed UK manufacturers could realise an additional 5-10% annual business growth from servitization. And earlier research from Cambridge University showed that manufacturers were increasing their levels of servitization rapidly. In the four years from 2007, the six economies with the most rapid servitization adoption

Servitization locks in customers, locks out competitors, and companies agree that service businesses tend to be more defensible than pure product businesses

48 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

Manufacturers are evolving. What used to be pure product operations are increasingly becoming service businesses. It’s what the business gurus call servitization – the shift from simply making and selling to building true customer relationship businesses. Peter Russell, head of manufacturing and industrials at RBS explains.

(France, Japan, Norway, China, Sweden and the UK) saw increases in the proportion of manufacturing operations servitized ranging from around 15% in the UK to more than 22% in France.

At a tipping point?

But what is servitization? At its simplest, it is adding a service component to manufacturing. And it is certainly not new. The Polaroid camera and the desktop printer were early examples of businesses where profits depended primarily on service, not on the manufactured product. But today there are new factors driving the adoption of servitization. Opportunities are being created by disruptive new technologies like 3-D printing, by the need to reduce business costs, by the environmental advantages of full lifecycle services from manufacturing to disposal and recycling, and by rising customer expectations of the service component in all businesses. All in all, we may now be at a tipping point in the servitization of manufacturing.

Indeed some UK companies have created pure service businesses within

the manufacturing sector. Examples include aviation component suppliers who once simply sold replacement components to airlines which would be used and later replaced. Increasingly, these companies will now lease higher value components for contracted periods, taking the part back for refurbishment upon expiry of the lease before re-leasing them to the same or an alternative airline. Instead of shortterm transaction-based relationships with their customers, these suppliers now build long-term service relationships, based around the power by the hour model, thereby keeping the customer closer, adapting services to meet their needs quickly and as a result creating long-term revenue streams as well as further opportunities to crosssell additional parts and services.

Or consider the case of postal franking machine manufacturer Neopost. The company used to manufacture and sell machines that might have a lifetime of 10 years or more - a long time to wait for return business. Now Neopost sells a mail and logistics solution based on leased machines as well as tracking and

Positioning for Growth Series

Service businesses may have higher profit potential than product businesses, but there is also the ever-present threat of loss of pricing power

tracing services – a business model with increased profitability and predictability.

But servitization may not be right for everyone. There are challenges involved, and much depends on who your customers are, what your management style is, and quite possibly your level of financial risk appetite.

The cost-reduction opportunity

On the upside servitization offers financial benefits as manufacturers shift to a long-term revenue stream model. That can make financing easier, because the long-term revenues are valuable assets and make for a more predictable cash-flow. Servitization can also reduce operational costs as a known customer base is cheaper to service. It simplifies business planning, reduces the cost of speculative inventory, and can make reshoring manufacturing operations to a single close-to-customer point an attractive possibility. The recent Aston University study suggests that cost savings may be as much as 30%.

Above all there is competitive advantage. Servitization locks in customers, locks out competitors, and companies agree that service businesses tend to be more defensible than pure product businesses. The closer a business is to its customers the faster they are able to adapt to

UK manufacturers could realise an additional

5-10% annual business growth from servitization

evolving consumer preferences and retain and even increase business.

But there is also evidence that profiting from servitization is a challenge. Research from Cambridge University shows that in some economies including Germany and the US, the level of manufacturing servitization has actually been declining, as some companies find that the organisational and financing challenges of the service model are high.

New model, new mindset

Servitization requires a mindset change for companies that have traditionally focused on product. Building the ability to deliver a service may require higher human resource costs, as well as complex IT techniques such as the customer-driven inventory processes. According to the Advanced Institute of Management (AIM), in 2009 employment costs were higher in servitized firms, at $41,230 per employee on average, compared to $32,520 per employee in pure manufacturing firms.

There are also financial costs as well as advantages. Longer business cycles can tie up capital and risks of non-payment increase when you move from 90-day payment cycle to a cycle of five years or more. At the very least companies will need to have financial skills and partners in place to support and deliver the new approach.

Perhaps the biggest challenge is long-term competitiveness. Service

ROYAL BANK OF SCOTLAND

businesses may have higher profit potential than product businesses, but there is also the ever-present threat of loss of pricing power. Strong customers may end up locking you in, instead of the other way around, developing very close relations with very large customers can mean that the customer ends up controlling design, manufacturing, and profitability, often to the point where the supplier becomes unable to supply any other customer.

Service opportunities are everywhere

On balance, there is little doubt that opportunities are greater than the challenges. Even in some of the most seemingly unpromising product sectors, manufacturers have found a way of profiting from servitization.

And although research from AIM shows larger firms tend to servitise more readily, there are servitization opportunities for smaller companies as well.

Consider the food industry. The giant food product manufacturer Nestlé managed to take coffee, a basic food commodity, and turn it into a high value service line with its innovative Nespresso brand, which uses capsules of fresh ground coffee in a proprietary coffee-making machine. Now instead of competing head-to-head with a host of brands in a highly pricesensitive market, Nestlé has created a unique and defensible premium business in the mass market, all by prioritising service over product.

The same can happen in unlikely corners of the business-to-business market. Take the case of Trifast, the UK manufacturer of nuts, bolts and fasteners. Trifast was originally not a manufacturer at all, but a distributor of fastening products – essentially a service business.

Then the company gradually built and acquired manufacturing capacity, while staying true to the just-intime customer service model of its origins. Trifast – one of the fastest growing LSE-listed manufacturers of the past 20 years - shows how the service model can be the primary driver of growth in manufacturing.

Evidence suggests that servitization is a model that will work because ultimately customers demand it, also it is a long established one and offers a longterm competitive strategy. It is up to companies to get the mix of technology, finance and service delivery right. If they do, growth will follow.

RBS works with manufacturers in all sectors and is committed to helping UK businesses position for long-term growth.

further information Peter Russell Head of Manufacturing & Industrials, RBS Corporate & Institutional Banking T: (0)20 7672 1007 E: peter.russell@rbs.co.uk

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 49

Interdisciplinary Research Centre in Materials Processing

laser deposition in operation

Breakthrough Birmingham As tracks the health and wellbeing of the UK aerospace sector (p28), Richard Fox, Business Engagement Partner explains how the University of Birmingham is helping the sector soar.

T

he University of Birmingham was founded on its city’s strong science and engineering legacy.

Since 1900 it has supported many of Birmingham’s, and the UK’s, greatest contributions to business and industry and this is still a central part of the University’s remit.

In the University’s College of Engineering and Physical Sciences we have reached an annual research income of £45 million and are driving advances in the aerospace sector in a number of areas including novel materials and fabrication methods for aeroengines. Our expertise underpins some of the most advanced engine designs. We have facilities and live projects in:

to reduce energy use and waste in the manufacture and repair of components.

Materials Research

Netshape Manufacturing

We have one of Europe’s best equipped laboratories for materials research in our leading School of Metallurgy and Materials.

If engines are to improve fuel efficiency by operating at higher temperatures we must develop new materials able to withstand such conditions. Lighter aircraft require less fuel, so we are working on lighter materials for aerospace technologies.

Magnets are vital for electricity generation, distribution and many appliances, and our specialist group is making these more efficient and compact. Materials for hydrogen storage are being developed to complement our fuel cell research. Novel processing techniques are being refined

50 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

Space Environment and Radio Frequency Engineering

The underpinning research theme of this group is to measure, model, and mitigate the effects of the ionosphere on radio systems such as GPS, high frequency communications and radars.

Current activities include the development of a satellite payload to measure the ionospheric effects on future space radar systems. Research is supported by a DSTL/RAEng sponsored chair who undertakes projects in collaboration with a range of stakeholders.

Our Netshape Centre is host to one of the most well equipped laboratories of its kind in the country. Through our facilities and expertise we have formed strategic partnerships with many multi-national companies involved in design and build of next-generation engines and airframes. We are pioneering research into new materials and production processes for aircraft components, minimising energy use in manufacture while reducing overall weight.

Advanced Manufacturing Technology Centre

The Centre carries out internationally leading research in advanced manufacture

focusing upon high value manufacturing and the associated knowledge-based technologies – laser processing, automation and intelligent manufacturing, micro engineering, nanotechnology and non-conventional and advanced machining, and computer aided engineering. It builds upon the School of Mechanical Engineering’s long tradition of excellence in manufacturing engineering and the University strategic position as a key academic partner in the Manufacturing Technology Centre (MTC) in its role as a Catapult Centre.

To carry out this research the Centre benefits from well-equipped laboratories particularly in material removal processes, laser micro processing, robotics and surface metrology that are complemented by the additive manufacturing and characterisation equipment of Metallurgy and Materials and Chemical Engineering Schools, and the new MTC facilities.

Communications, Microwave Devices and Systems

We have a broad range of research centred on the applications of microwave technology into communications and radar, and on novel aspects of network design with research funding from the EU, research councils, MoD and industry. Research covers both basic science and applications. An example of basic science is the work on materials

University of Birmingham

Dr Moataz Attallah, Lecturer in advanced materials processing, with a sample 3D printing product

such as dielectrics, ferroelectrics and superconductors. This basic work is complemented by the development of devices such as new, passive and active microwave circuits for real world applications.

Nanoscale Physics Research Laboratory

This first centre for nanoscience in the UK is a world-leading player in its field, and has many links to experimental and theoretical groups in Europe and beyond, as well as high-tech companies. Our £2.5 million Nanoscale Science Facility and £3 million Centre for Advanced Materials house a suite of powerful new tools to probe the physics and applications of nanoscale structures created in the Lab. The Laboratory is also a key partner in the University’s new bio-imaging centre.

Physics on the nanometre-scale is dominated by quantum mechanics. The Nanoscale Physics Research Laboratory is a world leading player in several areas of nanoscience research, notably in nanoclusters, atomic manipulation and nanoscale surface science. The field is now at a very exciting stage, where we can test fundamental physics ideas in finely controlled systems while at the same time making the link to applications in engineering, materials and the life sciences, in particular molecular biology, developing a new generation of devices based on nanoscale architectures.

High Temperature Research Centre

We have an international reputation in castings technologies with a focus on production of reliable castings, melting and casting titanium aluminides, investment casting, refractories for investment casting, and high performance cast irons.

Manufacturing Leadership

3D rendering of the High Temperature Research Centre

In October 2012, together with RollsRoyce, we announced that we will be establishing a new £60 million High Temperature Research Centre. This will be a unique casting, design, simulation and advanced manufacturing research facility, and will focus initially on the key design and manufacturing aspects of investment casting relating to aerospace and other industrial sectors. It will also work in education and research with a variety of other partners in the UK and internationally.

The University of Birmingham’s College of Engineering and Physical Sciences annual research income has reached:

£45M

Manufacturing Technology Centre

The University of Birmingham is a key founding partner in the development of the £40 million Manufacturing Technology Centre (MTC) at Ansty Park near Coventry.

Our collective vision for the Centre is to become a world-class global research facility: ‘Making the Future’ through transformational manufacturing technology development. The other founding partners are University of Nottingham, Loughborough University, and TWI Ltd. The Centre currently focuses on 5 major technology themes including, netshape manufacturing (NSM), high integrity fabrication, intelligent automation, advanced tooling and fixturing, and computational engineering.

Developing the Talent Pipeline

We have a range of industry focussed Doctoral Training Centre’s (DTC’s) across a variety of engineering subjects.

These include: An EPSRC sponsored centre with themes covering materials processing, materials characterisation, new materials developments, structural integrity and materials modelling.

Hydrogen fuel cells and their applications Formulation engineering

We want to work with you This vast array of expertise and equipment is available to help your business tackle complex issues and find innovative solutions. Whether you are a large corporate organisation or a small business, and whether you require a short term solution or have a long term project in mind, please contact Mr Richard Fox to find out how you can tap into the world class expertise at the University of Birmingham.

Mr Richard Fox, Business Engagement Partner College of Engineering and Physical Sciences University of Birmingham T: +44 (0)121 414 8921 E: foxr@bham.ac.uk

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 51

Pinsent Masons

Manufacturing Leadership

Pension autoenrolment: it’s far from over

T

The implementation phase of pension auto-enrolment might be over, but as Tom Barton, partner at Pinsent Masons explains, there are still plenty of issues for employers to consider.

he staging date by when employers must comply with the recent pension auto-enrolment laws will now have come and gone for many manufacturers. The infuriatingly complicated business of getting the existing workforce into a pension scheme will be all but over. Autoenrolment requirements will have been built into the ongoing payroll process. New hires will be enrolled if appropriate as and when they commence employment.

Rather than let sleeping dogs lie, now would be a good time to deal with any nagging doubts about compliance

52 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

Is this the end of it all?

Unfortunately workplace pensions are never that simple.

Manufacturers would be well advised to reflect on whether what they have done is (a) compliant and (b) fit for purpose. This is a matter of risk management.

We’ve now seen the first example of the Pensions Regulator flexing its muscles to clamp down on employer breaches. Dunelm Furnishings has had to pay nearly £150,000 to its pension scheme simply because payroll arrangements were not aligned with autoenrolment requirements.

There was no suggestion whatsoever of foul play. Being blunt, the Regulator expects you to get this right. If you don’t, the Regulator can make you put things right retrospectively.

So rather than let sleeping dogs lie, now would be a good time to deal with any nagging doubts about compliance.

The further we get from

After the abolition of the default retirement age, we’re already seeing employers pay off older workers in order to bring through flesh blood

staging date; the greater the cost of rectifying a breach. And the longer a breach is left to fester, the more likely it is that we’ll see the exercise of some of the more draconian powers at the Regulator’s disposal – such as escalating daily fines of up to £10,000 and even criminal sanctions.

These aren’t the only risks. By and large manufacturers have chosen to enrol their workers into a DC scheme.

No deficit, no funding negotiations and (in some cases) no trustee board to contend with. But without a generous pensions “promise”, what are the members left with? In some cases, little of value. If auto-enrolment pensions fail to meet member expectations then members will (i) simply not retire until they can afford to or, worse still, (ii) make claims against their employers for derogation of duties.

After the abolition of the default retirement age, we’re already seeing employers pay off older workers in order to bring through flesh blood. This could be an expensive practice where workers are relying on DC as their sole or primary source of income in retirement. In terms of member claims, it is a case of “watch this space”.

There is a growing trend of DC governance to guard against these risks. Some well-intentioned employers actually assume a greater level of risk by launching into this too quickly. From a legal perspective, governance arrangements are a sensible development, but should always follow detailed consideration of the cost, risk and reward components of an overall HR strategy.’

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effective solutions for the workplace

Even the great industrial machine that is Germany is beginning to suffer from over regulation

the wider European industrial community and for European society.

Setting out a vision

A Great Reformation Can business affect positive change to EU bureaucracy? Jane Gray talks to Terry Scuoler of CEEMET about the challenge.

‘‘A

nyone with any experience of dealing with the EU parliament and its commissions will know that the associated management processes and institutions are deeply flawed and in dire need of reform,” says Terry Scuoler, CEO of UK manufacturing trade body EEF and newly appointed chairman of CEEMET, the European trade association for metals, engineering and technologybased industries.

“But let us handle that reform from within,” he continues. “Just going across [to Brussels] and constantly criticising is not the best thing to do.”

54 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

In the advent of a UK referendum on EU membership, EEF has clearly set out its stall, emphasising its belief that membership is an overall positive for business and industry. It has strongly sold the benefits of the single market – not only for trade of products, but also for movement of labour, as well as perks like a common patent system. (Read more about EEF’s position on EU membership at bit.ly/ EEFEuropeManifesto) However, in taking on the CEEMET chairmanship Mr Scuoler has now turned to focus on the ways in which the EU competitive proposition can be further improved; for the UK’s benefit, for

In early July he set out the CEEMET manifesto for growth and increased competitiveness in Europe to MEPs (see box). The document recognises some deep-set social maladies across the continent, particularly the south, and puts forward a more active role for business in remedying these.

A long term member of the board of directors for CEEMET, Scuoler is far from a novice in the workings, or lack thereof, of European bureaucracy and while acknowledging the size of the challenge before him, he is determined to lead a period of change during his tenure.

“My appointment coincides with a marked increase in the level of investment by member companies in CEEMET resources and the CEEMET team in Brussels,” Scuoler relates. “And with that resourcing, there comes a higher level of obligation for myself and the director general to communicate the frustration which is coming to a head about the attention Brussels seems to give to legislation and regulation rather than the need to be competitive. The need to drive investment, productivity and address the EU’s net trade balance must be elevated.”

Scuoler has pushed hard in the last couple of years to rationalise CEEMET’s stance and recommendations on these issues and, he says, his recent appointment as chairman may be related, not only to this, but also to his British status since – while many in UK continue to complain that it is not a competitive place to make things – “European partners today see the British view [of competition] and the British economy as one they would like to model their own on – at least far more than they have done historically.”

EU reform

It puzzles me, that I speak to so many people in Europe, including senior parliamentarians and commissioners, who voice a desire for reform, and yet getting that reform is so difficult

Manufacturing Leadership

CEEMET’s Manifesto for Industrial Competitiveness This document was presented to MEPs in Strasbourg on July 3rd and sets out some priority targets which EU reform must achieve in order to foster competitiveness, wealth creation and answer some of Europe’s social troubles.

These are: Better regulation: resulting in enhancements to the single market, more support for SMEs, continued work on the consolidation and simplification of the regulatory framework and appreciation for work-life balance and changing workforce demographics

1 2

Dynamic labour markets with skilled workers: resulting in more efficient education systems based on business needs and innovation and R&D outcomes as well as improved careers guidance, available on both a national and EU level

3

A better dialogue with industry: resulting in more input from industry into regulation of working life and the evolution of consultation with industry, alongside social dialogue, at a European level

Terry Scuoler (right) with Business Secretary Vince Cable at the International Festival of Business 2014

Mutual interests

It’s flattering for both Scuoler and Britain that its industrial recovery is seen from outside in such a positive light, and that Scuoler – as someone who has been close to that recovery – is sought out to share his observations with forums and at events in Germany, Italy, Spain and more.

But neither Britain nor Scuoler can rest on their laurels. “There is still a great deal more that can be done in the UK environment in terms of getting stronger consumer growth to drive output. And there’s surely so much more to be done to access the BRIC markets and the rest of the top twenty developing economies identified by the UK government as growth hubs.”

Turning back to Europe, Scuoler continues, “But when you consider that there are four or five economies in the EU which are flat-lining and another four or five that are contracting it is clear that driving growth across the EU is essential for the region as a whole and for the UK as an exporter.” It’s worth remembering that around half of UK exports are still Europe-bound.

Find out more about CEEMET’s manifesto for Industrial Competitiveness at bit.ly/CEEMET Given the mutual benefits to be had from a stronger Europe, Scuoler is committed to taking a collaborative approach to reform and growth.

“As a Brit, I learned very quickly at EEF that if I went to meetings in Brussels regarding competition-limiting regulations, it was very difficult to get my message across,” he says.

“If I went to those meetings with colleagues from, say, France, Germany and perhaps a southern periphery counterpart, the commisioners listened.”

This combination of forces works well in the interests of European industry says Scuoler since so many representatives are concerned with similar

CEEMET represents over 230,000 member companies across 24 European nations.

issues. Primarily, for the moment, with unprecedented levels of unemployment as a symptom of underinvestment and burdensome business regulation.

“These utterly appalling employment figures, particularly in the southern periphery nations, are linked to other issues of competitiveness and to the political agenda in a way we have never seen before in the EU,” Scuoler states emphatically. “Even the great industrial machine that is Germany is beginning to suffer from over regulation,” he asserts.

Indeed, the common interest in seeing reform of the EU regulatory environment and an increased will to foster competitiveness is so compelling that the only great wonder is that so little change in structure and policy has been seen to date.

“It puzzles me,” says Scuoler, “that I speak to so many people in Europe, including senior parliamentarians and commissioners, who voice a desire for reform, and yet getting that reform is so difficult.”

Should business lead this reform which has so many political, social and cultural issues at its core?

Scuoler believes firmly that it can. “The very wide range of business people coming together now to express their concerns can have a big impact,” he says. “They, and we, are the motors of change.”

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 55

The detail may look abstract, but the impact is plain to see.

Often in business, it’s the little things that can make a big difference. Just ask Dext Heat Recovery. Using state-of-the-art modelling techniques we helped Dext to develop an innovative new product, leading to orders from several large restaurant chains.

We love turning our specialist expertise into real, bottom-line benefits for our clients.

We’re already helping companies to reduce downtime and waste, access new markets, improve their product quality and drive down energy consumption.

Why not set us a challenge of your own?

shu.ac.uk/manufacturing

Energy experts help to recover waste heat in commercial kitchens, reducing energy bills and improving sustainability.

Dext Heat Recovery approached Sheffield Hallam University because they needed a technical partner to help develop a product that recycles the wasted heat from industrial kitchens. Using cutting-edge techniques and facilities, the University was able to help them reduce energy costs and environmental impact for major restaurant chains, including Nando’s and Frankie and Benny’s.

In commercial restaurants, food is heated from refrigerated temperatures to high temperatures relatively quickly.

This requires a lot of energy and often generates a considerable amount of waste heat. Sheffield Hallam’s energy experts were able to help Dext successfully develop innovative heat exchange systems to recover that waste.

The heat recovery system had to deliver high performance in a challenging environment, working to recover lowgrade waste heat and reintroduce it to the system while overcoming real-world problems like grease fouling and flame protection.

Using state-of-the-art modelling techniques including CFD (computational fluid dynamics), a series of experimental runs and analytical engineering methods, researchers helped Dext to develop a heat recovery plate that can be installed close to the

main heat source within the kitchen, either directly behind a chargrill or cooker, or within a canopy.

The heat is absorbed by the plate and transferred into a sealed water circuit, which is circulated through a coil in a cylinder for hot water generation, providing substantial energy savings for the end user.

As well as showing very good performance under difficult operating conditions, these systems are effective, robust, relatively low cost and easy to clean.

After the initial trials, the system is being installed at a number of restaurant chains, including Nando’s and Frankie and Benny’s. The initial consultancy work resulted in a successful Knowledge Transfer Partnership (KTP) with a KTP associate working between the company and the

University. The associate has since been taken on by the company in a senior role to help develop the company’s new technologies and future products.

‘We had created a new technology that could not be tested to any normative standards, so we approached Sheffield Hallam to gain some independent validation to offer to our potential first client. The client had indicated they were prepared to trial our system if it proved viable.

‘Sheffield Hallam seemed best suited to our needs – lateral thinkers and able to work around our budget and timescale. The initial work exceeded our expectations and we have since established a close working relationship with the team – they are our ‘go-to-guys’ for any viability or improvement studies and CFD modelling.’

Neil Bracewell, Team Dext

Kimberly Clark

Manufacturing Leadership

Thinking large but lean

I

Josh Northcutt, continuous improvement leader at Kimberly Clark explains how lean management of industrial supplies in the aerospace sector can aid continuous improvement.

f you are responsible for ensuring production of the right product at the right quality within a specific production schedule, you know that preparation is essential. The lean management of industrial supplies can enhance quality by minimising the risk of defects, delays and unplanned costs, at the same time as having a positive impact on workplace health and safety.

Fit-for-purpose products, including wipers and cloths, boost efficiency, and savings can be made through point-of-use dispensing, inventory and disposal. Furthermore, the right personal protective equipment (PPE) and taskspecific solutions can cut costs while reinforcing health and safety.

Think differently about large surfaces

Aerospace involves working with large surfaces, such as air frames – fuselage, wings and other control surfaces.

Lean management can be most effective when applied to large surfaces.

Preparation and cleaning of large surfaces requires all kinds of resources and supplies and so by re-evaluating your chemical/solvent application process, even the smallest incremental saving can grow to a significant amount over time.

Hours spent in non value-added tasks can potentially increase in proportion and affect production schedules. For example, at an aircraft maintenance

58 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

facility in Dubai, a Boeing 777 requires a team of 26 to 30 people for a full strip-and-repaint project. This is turned around in 12 to 13 days in a hangar that operates 24 hours a day, seven days a week, and if 10% of a worker’s time is spent in retrieving tools and other industrial supplies during this process, that is approximately 250 hours of non value-added time wasted over the entire 12-13 day time period.

Larger surfaces can bring a higher probability of defects. And with a large number of workers involved in the processes, the probability of human error also increases.

Most of the time, more solvent than required will be applied. However, if too little solvent is used then the surface may not be sufficiently cleaned of contaminants and may create increased potential for defects.

Spray bottles and buckets make it hard to establish a standard. This can lead to over-processing (motion waste)

Larger surfaces can bring a higher probability of defects. And with a large number of workers involved in the processes, the probability of human error also increases and solvent waste, which can then be exaggerated when working on a large surface. Any activity involving sanding, chemical application for anti-corrosion, surface preparation and priming/painting highlights potential waste and risk.

While there may be few alternatives to solvents and chemicals, even a small reduction in their use can soon add up to a considerable saving and reduce potential occupational exposure to such hazardous materials.

As part of the Efficient Workplace Programme, Kimberly-Clark Professional offer a Waste & Hazard Walk. By observing and analysing actual manufacturing practices, we can help identify new areas of cost improvement. Many Waste & Hazard Walks in the aerospace industry have shown that a review of the application practices of chemicals can have a significant impact on the bottom line.

For more information on Kimberly Clark’s Waste & Hazard Walks, visit www.kcprofessional.co.uk/efficient/MAN or call 01273 853 274.

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

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

Automation needs to rise to the board level in companies of all sizes, but especially larger SMEs where the capital equipment could make a profound difference to winning contracts. Companies in non-auto sectors, who are unfamiliar with the range, capability and simplicity of automation kit, need and deserve to know what automation options are available.

This year it is a business risk not to be informed about the benefits this technology can bring.

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

Learning to lean

Lean Management Journal editor Victoria Fitzgerald reflects on some of the recent articles featured in the journal to emphasise the possible impact of lean methodology and culture.

J

ohn F Kennedy once said “conformity is the jailer of freedom and the enemy of growth.” July’s edition of LMJ and this year’s annual European Conference tackles the scaling dilemma and the challenge of maintaining lean as an organisation grows. The resounding message to resonate

from this month’s lean study is embracing change as a tool to continuously add value and eliminate waste.

July’s issue includes comment from Matthew Smith of AIG, LMJ board member Joseph Paris, and Steve Wightman of Caledonian Modular, manufacturers of offsite construction projects.

You can read more about these articles and more at www.leanmj.com

Lean by nature Steve Wightman, business development director at Caledonian Modular, explains why the firm’s offsite construction system is a sparkling example of waste elimination.

C

We don’t have a lean champion but the process is inherently lean by the very nature of it. We break the building down into transportable elements and look at minimising the number of processes

60 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

aledonian Modular manufactures bespoke construction projects at its factories in Newark, Nottinghamshire and Driffield in East Yorkshire.

The 50-year-old firm operates in seven factories in almost 60 acres across two sites and has been manufacturing modular units since 1997. The company began by providing prison cells for the Ministry of Justice but now manufactures projects ranging from single story structures to high rise buildings.

Once the organisation has received the building brief, the construction is designed and broken down into slices. Each module of the building is fully

assembled onsite, from electrics to decoration and fittings, each section is taken to the new site and fitted together like Lego.

Steve Wightman told LMJ: “We don’t have a lean champion but the process is inherently lean by the very nature of it. We break the building down into transportable elements and look at minimising the number of processes.

“During the design process we look at things like do we buy in panels preassembled? Do we look at alternative materials enabling us to reduce the cycle time? What product are we going to use and how are we going to fit it?

“For instance, not moving the product more than absolutely necessary, that’s a lean principle and from our perspective it’s common sense.”

www.leanmj.com

Lean manufacturing

Global lean transformation Matthew Smith, head of the Lean Centre of Excellence at AIG shares the highlights and challenges of launching a lean system across multiple geographies in the world’s largest insurance firm. With more than 88 million customers and a network of more than 64,000 people in more than 90 countries, the scale breadth and complexity of the organisation is substantial.

A

IG’s journey, the Way of Working (WoW), started in late 2012, following a couple of small pilot schemes to deploy process improvement across the organisation. Commitment to the company’s approach was a result of several factors. The operations in one country took a radical new approach to the redesign of its workspace and saw some immediate gains in staff engagement and morale. The then-CEO of the EMEA region, Rob Schimek, was delighted with these early results but challenged the team to go further and look at methods to re-engineer the way the firm operated.

Over the past 12 months, AIG has developed a strong foundation and infrastructure leveraged globally.

Over the past few waves of deployment it has benefited from the following improvements:

Increased efficiency and effectiveness by 20%; Expanded across the UK, Belgium, Germany, Italy and the USA and over 1,700 staff have started their WoW journey.

Worked with LCS at Cardiff University to accredit our internal capability building programme, helping us to get our good talent in the right roles.

Started to move talented individuals from the WoW team back into key business line roles.

Moved through the first scale up moment moving from single business deployments to multiple deployment in multiple countries with the complexity of language, culture, local working practices and local markets.

Introduced a continuous improvement team that completes regular, follow-up engagement with earlier waves – both to help sustain the initial improvements, introduce innovations from subsequent waves, and identify further opportunities

Embrace the fear of change LMJ editorial board member Joseph Paris examines the challenges, mistakes and best practices in maintaining lean when business booms.

M

ost continuous improvement initiatives within companies are conceived, orchestrated, staffed and managed at the corporate level. This is a common

blunder and will significantly squelch the potential benefit of the initiative as the improvements realised will be limited by their capacity to be implemented and ability to be sustained.

People rely upon their culture, traditions, nostalgia, and tribalism because of the comfort they find in what they know – and are thus powerful forces that are difficult to overcome, indeed. Accordingly and predictably, people are naturally resistant to change because it is the unknown – and people fear the unknown. It can be reasoned, therefore, that change brings fear in people. Hence, the best chance for effecting change is not to have it thrust upon someone, but for the “someone” to engage, become an active participant and not a spectator, and for them to

realise for themselves the benefits of the new way and adopt it as their own.

In the end, someone can dream great dreams and create great strategies. But unless you have the capabilities and capacity – and win over the hearts and minds of those whose nostalgia, beliefs and traditions you wish to change – you will never achieve them.

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 61

Trailblazer apprenticeship programme

WORKFORCE & SKILLS

One of the biggest issues apprenticeships have faced in the past is a lack of clarity on what they should be and what they should contain – leading to huge disparity

Blazing trails in aerospace

E

history of first class apprenticeships, with many of the industry’s leading figures former apprentices themselves.

Elsewhere, however, six week training schemes branded as apprenticeships have done a lot to damage the wider reputation of the vocational route – but things are changing.

EAL has always worked closely with employers to ensure its qualifications meet their needs and the needs of learners. Now, government’s apprenticeship reforms are taking this policy national, spearheaded by the Trailblazer scheme. This is helping to cement apprenticeships’ key role in the economic future of the country.

Julia Chippendale, managing director of specialist awarding organisation EAL explains Employer view how the organisation is Gary Griffiths, head of early careers working alongside employers programmes at Airbus, said: “The Trailblazer programme has given on the future of aerospace employers a real opportunity to make apprenticeships. the apprenticeships they need fit for

mployers have been given an unprecedented opportunity to shape the future of England’s apprenticeship landscape following government reforms. Key amongst them, Trailblazers are seeing employers, awarding organisations and professional institutes working together to ensure apprenticeships meet skills needs and give learners the best possible start to their careers.

The aerospace sector is at the forefront of these reforms.

Aerospace Trailblazer

The aerospace sector is one of eight sectors chosen to participate in the first phase of the Trailblazer scheme, and is represented by a partnership of employers including BAE Systems, Rolls-Royce and Airbus.

The partnership is already moving ahead with plans to launch its first

62 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

Trailblazer apprenticeship in 2015/16.

The mechanical fitting apprenticeship is likely to be followed by 21 others, including electrical fitting and machinist.

The partnership is aiming for more than 300 signups in the first year, followed by thousands more across the aerospace sector in subsequent years.

As a leading awarding organisation for the engineering sector, EAL is working with the employer partnership, alongside other awarding organisations and professional institutes, to standardise the qualifications for the Trailblazer apprenticeship.

Apprenticeship insight

One of the biggest issues apprenticeships have faced in the past is a lack of clarity on what they should be and what they should contain – leading to huge disparity. The aerospace sector, and wider engineering and manufacturing sectors, have a long

purpose and meet their requirements for the occupations within their sector.

“Within aerospace, it is also important that there is a clear correlation with national occupational standards still used in the devolved nations, as we need a standardised approach for our apprenticeships across the UK – this is why we have developed the employer occupational brief as part of the Trailblazer requirements.”

Richard Hamer, education director and head of early career programmes at BAE Systems, added: “We have a great partnership of employers, engineering institutions and awarding bodies in the Trailblazer development group.

“The new standards are important for shaping the future of apprenticeships and we were keen to ensure the new aerospace standard both met the needs of large companies and SMEs – therefore supporting the wider advanced manufacturing sector.”

Dr Kathryn Taylor

Employee of the Month July/August 2014 Dr Kathryn Taylor

R&D Engineer, Romax Technology

CV in brief Dr Kathryn Taylor Age: 32 Background: MPhys in Physics, University of Oxford, 2000-2004, PhD in physics, University of Nottingham, 2004-2009, MSc in Engineering, Open University, 2012-present Hobbies and interests: STEM ambassador activities, volunteering with the Institution of Mechanical Engineers, playing the cello

: What is your role and what are the main responsibilities?

I work in the R&D group at Romax Technology.

My current project is the development of a simulation methodology for hybrid and electric vehicles, focussing on the very early concept design stage. At the moment lots of drivetrain designs are based on existing technologies, because current simulation tools tend to be very computationally intense, so it takes a lot of time and effort to consider all of the design options.

The methods I’m working on look at all the options at the early stages so you can evaluate a large number of potential concepts, not just for fuel consumption but also performance, packaging space, cost, and weight.

Optimising against multiple targets at once is an interesting problem.

out how to do things as you go along – every day brings a new challenge! : What do you consider to be your biggest career success so far?

On a personal level, it would be completing my PhD. I also received my chartership in engineering last year, which is really valued in the profession. I am closely involved in my local committee of the Institution of Mechanical Engineers, organising events for the membership. Professionally at Romax, the project I’m working on at the moment has potential to make a big difference and create something valuable for the automotive industry.

: What are the key technical skills you use?

My job mostly involves programming. My PhD is in Physics, which is pretty unrelated to what I do now, but the connection is it taught me how to programme.

This is obviously a useful, transferable skill!

Also having a physics background gives me a good understanding of how mechanical systems work. : What attracted you towards your chosen career?

R&D is attractive to me because it’s about new technologies, new methods and new applications, rather than implementing existing ideas. It’s about figuring

EMPLOYEE OF THE MONTH

: Do you have a grand career ambition?

On a personal level, I want to keep learning new things. Because my background is in physics rather than engineering, I am studying for a Masters degree in Engineering with the Open University, which is hard work but very rewarding! Professionally, I want to make a positive contribution to engineering in the UK, and also expand my experience across more sectors. At Romax most of our history is in automotive drivetrains, but we also work in the wind turbine industry, as well as aerospace, rail and marine. Although the applications are very different, the technology is similar, and it’s quite interesting to see how you can use the same methods and apply them in different ways. : How do you think best to get more young people interested in engineering and manufacturing careers?

I think the STEM ambassador scheme helps a lot. Simply having someone different coming into a school and talking to the students is useful. Even if the ambassadors are saying similar things to the teachers, I think pupils will naturally listen to an external visitor. People who are taking GCSEs and A-Levels now will end up doing jobs that haven’t even been invented yet, and I think it’s good for students to see the diversity of different career options available. And also the diversity of people who do these careers, for example people of different backgrounds, genders, and nationalities - by meeting someone from China or India who has moved to the UK to work in engineering, they might think “why can’t I do that?”

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 63

Why crazy ideas like Bloodhound are so important

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As former jet fighter pilot and all round speed freak Andy Green said to a factory full of media in Bristol recently, “a recession isn’t the best time to look for sponsorship for something as crazy as a land speed record car.”

t was for this reason that the team behind the Bloodhound SSC vehicle, which aims to break the land speed record along with the 1,000mph mark, shifted its pitch from simply pushing the boundaries of modern engineering to bringing future engineering talent along with them.

The Bloodhound SSC vehicle and its team spearheaded by Green and land speed record stalwart Richard Noble are pushing this angle hard, and it’s clearly paying off. When once there were posters of Andy Green standing beside Thrust SSC, now there is the same man beside the latest incarnation And of speed on imagy Green, four wheels.

Stefa e courte n Ma s rjora y of This m became

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ever more apparent when visited Bloodhound’s factory in June when the team unveiled the cockpit which will house Green as he rockets past 1,000mph.

A large part of the build team present on the day was made up of the British Army’s Royal Electrical and Mechanical Engineers. Among the build team was Richard Constable, a young and inspiring engineer who was one of those very kids with the poster on his wall.

“I remember seeing Andy Green do the run in 1997 in Thrust SSC,” he said.

“I had his poster on my wall and now here I am. It’s a dream.”

Now Constable is himself spreading the message of Bloodhound, and therefore the greater possibilities of a career in Engineering. He said it was encouraging to see the enthusiasm the project drew from the younger generations the UK manufacturing sector is trying so desperately to tap into.

“The kids absolutely love it,” Constable said. “They see the uniform and they see the car and now they have a chance to make model land speed cars as well. It’s a great project to be part of.”

While it’s easy to say Bloodhound has the definite wow factor to inspire kids and young potential engineers, it can’t be dismissed the real potential the team has tapped into and the complete justification a “crazy project” like this can achieve.

Training for the future

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Progress report on the Lloyds Advanced Manufacturing Training Centre at MTC.

n November last year Lloyds Bank announced that it would provide £1m per year over five years (bit.ly/LloydsbacksAMTC) to support the delivery of apprenticeship teaching at the Manufacturing Technology Centre’s new Advanced Manufacturing Training Centre. The centre is also the grateful recipient of £36m from government and industry.

Mid-way through 2014 and building work is underway, aiming for a June 2015 completion date.

But in addition to this physical development, strategic and operational development is also progressing.

John Male, currently head of learning and organisational development at engineering and construction firm Costain was recently appointed MD of the forward looking centre and 60 young apprentices are signed up to start a year college training in September this year. In September 2015 they will be the first cohort to embark on their second year of hands-on education in a facility housing some of the most advanced manufacturing technologies in the world.

The centre will focus on turning out world class talent for manufacturing and engineering SMEs, raising the profile and competitiveness of supply chains for a more robust sector overall.

Snapshots

David Richardson, regional MD corporate markets at Lloyds bank who was a driving force behind committing the bank to sponsorship of the new training centre comments: “We didn’t want to invest in training people who would then go on to work for large firms who could afford to train those individuals themselves. We had SMEs in mind.”

Other training

In addition to apprenticeship training, MTC’s training centre will also help to up-skill engineering graduates, nurture industrial design graduates who find it hard to find jobs and support teacher inspiration through support for an IMechE teacher placement scheme (bit.ly/IMechEteacherplacements).

Qualifications that inspire confidence

To ensure that all training delivered at the new centre, particularly the apprenticeships, are understood and valued by industry, MTC is working with engineering awarding bodies like EAL to create new qualification frameworks for new engineering skills.

Pushing toward a higher social value for engineering too, MTC has also agreed with the Institution of Mechanical Engineers that MTC apprentices will receive incorporated status with the professional body.

This work has convinced government that the Lloyds Advanced Manufacturing Training Centre is worthy of being held up as a beacon for industrial education. Business Secretary Vince Cable has named the centre as one of the first of a new wave of National Colleges which will be “specialised institutions, acting as national centres of excellence in key areas of the economy”.

FURTHER READING: Read more about the Lloyds Advanced Manufacturing Training Centre at bit.ly/Trainingforfuture

WORKFORCE & SKILLS

TRS steps forward Retaining and transferring engineering talent is as important to skills security, particularly in the short term, as inspiring the next generation. But is anything really being done to address this?

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he short answer is yes. In 2011 the Talent Retention Solution was launched to help transition personnel leaving the armed forces – through retirement and, increasingly, Strategic Defence Review-related redundancies – into the burgeoning automotive sector where rocketing demand was making skills deficits painfully obvious.

A year down the line, a group of employers backed an expansion of the project to try and extend its benefits to a wider range of employers who were finding that growth opportunities were passing them by because they could not find the right technical or project management skills.

On June 5 TRS took another leap forward with the support of the Engineering Construction Training Board and the Career Transition Service.

A collaborative event at the Royal Academy of Engineering brought the combined forces of these organisations together for a novel careers fair.

140 military personnel who, for various reasons, are planning to leave the armed forces, were able to network with representatives from 20 engineering and manufacturing organisations – many of them also ex-services.

The event helped to highlight live job opportunities, explain

the opportunities available in growth sectors and reassure service leavers about the transferability of their skills.

The event was announced a great success by organisers, exhibitors and delegates alike and there are plans to run it again.

The careers fair element of the day was followed by a reception at the House of Commons where Lord Younger, parliamentary undersecretary of state for intellectual property and spokesperson for BIS congratulated TRS on making a real impact on industry skills challenges.

Speaking frankly, he said, “pretty much every skills initiative from government has basically failed.

TRS succeeds because it is employer led.”

Lord Younger went on to recognise the contribution of Atkins and Semta chairman Allan Cook in championing the initiative in industry.

FURTHER READING: Read more about the Service Leavers event and the reception at bit.ly/ServiceLeavers

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 65

Designing engineers of the future takes a look at the Design & Technology Association’s latest programme in combatting the engineering skills gap.

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he Skills Gap Programme is designed to develop new skills for Design & Technology teachers and students through industry partnerships. It aims to bring teachers up-to-date with the technical and soft skills required by business,

Robot buggies, designed, made and programmed by Marling School students

Getting to grips with microprocessor technology

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identifying gaps in their knowledge and develop associated skills which will enable them to apply creativity and innovation in teaching. It also provides insights into training and career pathways which are shared with pupils.

All teachers participating in the programme’s pilot schemes reported and illustrated new design knowledge and technical skills. Specifically, ACE Academy with company Alucast, explored the principles of manufacturing in quantity, quality control and iterative design through casting in aluminium and other materials used in school. They designed and cast a coaster and candle table centrepiece. During the project they were encouraged to develop soft skills around problem-solving, independent enquiry and self-management, highlighted by the business as necessary for their industry. In the case of Marling School and Renishaw plc, the skills gaps centred upon the curriculum areas of computer programming, advanced electrical and electronic systems and intelligence in products while also exploring risk taking and creativity.

Reaching the climax of the first two Skills Gap Programme pilots, the teachers used their new skills and passed these on to their students. ACE Academy and Marling School recently presented results of their school projects to business partners, Alucast and Renishaw respectively. At ACE Academy 80% of the year 9 students and 90% of the year 8 pupils at Marling School reported they had the opportunity to put new skills, learned through the programme, into practice.

Pilot ouptuts

Two D&T departments and more than 60 students participated in the initial pilots. Leading the project at ACE Academy, Graham William, D&T teacher said: “It was a steep learning curve.

Both the students and I have developed new skills. Through the project we encountered real design problems which was challenging but positive and beneficial for the pupils”.

Marling School successfully completed a challenging project to create programmable robot buggies, working with Renishaw. Celebrating the conclusion of the project, students were proud to show off their individual buggies in action at a presentation to Renishaw employees and the Skills Gap team.

Renishaw coaches gave very positive feedback, commending the teachers’ enthusiasm and applauding students for the impressive standard of presentations. Dave Collingwood from Renishaw commented: “The

The Skills Gap Programme

programme was very challenging for both students and teachers as they were learning coding and compiling their programs, then downloading on the RenBED microprocessor board so that they could get their individually designed buggies to move around.

These are all skills that industry needs and which at Renishaw, we often find missing from university graduates”

Next steps

A number of key learnings emerged from the pilot which are being taken forward as the Skills Gap programme continues.

These centre upon increased planning before the programme is launched to students and further clarity on the roles of both the teachers and employee volunteers during the project itself. The programme aims to enable teachers to be creative with their new skills but it is evident that this should be built into planning the project, before delivery to ensure there are clear parameters for students to be creative themselves but within the boundaries of the curriculum and timetable. In the case of the pilots, students had the opportunity to let

In the case of the pilots, students had the opportunity to let their imaginations lead the way which provided a wonderful opportunity but required more input from the volunteers than had been intended

Bridging the gap The Skills Gap Programme is managed by the Design and Technology Association and forms part of the Association’s work to support D&T teachers to move the subject into the 21st Century. It addresses a need in schools, identified through Ofsted, for teachers to expand upon initial training and keep pace with technically demanding aspects of the D&T curriculum, which covers a wide range of topics including product design; food technology; graphic products; textile technology; electronic products; systems and control. In two recent reports, the Skills Mismatch by Lord Baker and Engineering Habits of Mind published by the Royal Academy of Engineering, both advocate the critical role of teachers in the development of industry relevant technical and soft skills. Cheryl Phillips commented that “D&T is the practical application of STEM subjects and through the Skills Gap Programme students are able to apply their STEM subject knowledge similar to the way in which a business would bring together a variety of skills & knowledge to develop a new product.”

The Skills Gap Programme works through linking a school and local business together, leading them through a structured programme, which starts with identifying the D&T teachers’ specific skills gap(s) and the business’s relevant expertise.

The team, school and business work together to develop the teachers’ technical skills, leading to the creation and delivery of a unique skills-based school project with students, from which, business-linked teaching materials are developed to be shared with a wider audience.

WORKFORCE & SKILLS

their imaginations lead the way which provided a wonderful opportunity but required more input from the volunteers than had been intended.

Programme director Cheryl Phillips, said: “There is a careful balance to achieve to get this right. The bringing together of teaching professionals and industry experts stimulates the development of exciting project ideas but both have their day jobs and it is critical for the Skills Gap programme to ensure we tackle projects which are achievable not only for those involved but by other schools too.”

The refined programme model is currently being piloted by ADI Group, an engineering company based in Birmingham in partnership with Handsworth Wood Girls Academy. ADI Group are keen to encourage more young women into the industry. The key areas of focus for the teacher’s skills development are design and CAD skills.

The teachers have been supported by the Skills Gap team to plan the project in detail with technical training sessions specifically tailored to provide the design and CAD skills which the teachers will need to deliver the project to a year eight group. ADI Group will also support two lessons over the course of the autumn term to provide examples of CAD in their industry and act as a teaching assistant when the teacher from the Girls’ school lead the class through the use of the software.

Emma Cromarty, HR Manager for ADI Group commented: “We already work with schools but this is the first programme to enable us to share our skills and knowledge in a structured and manageable way. We have now given the teachers new CAD skills and our volunteers are currently supporting them to practise these.”

Other partnerships in the Skills Gap Programme include Airbus working with Ysgol Clywedog in Wales, Brandauer with St Albans Academy in Birmingham and new supporters joining us from Mulberry in Somerset and Thomas Dudley in the Black Country.

To register your interest in the scheme, please contact Cheryl Phillips, Skills Gap Programme Director for the D&T Association on Cheryl.phillips@data.org.uk or 07903502768 July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 67

Omron

Manufacturing Technologies

Robert Brooks, product marketing manager at Omron states the case for taking a holistic approach when looking at the aspects of machine building.

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he pace of change in the machine building industry is always rapid and the technological advances over the past quarter of a century have resulted in unprecedented leaps forward in speed and productivity.

Exacting customer demands have also prompted innovations in machine flexibility and efficiency. UK machine builders are now under more pressure than ever to develop solutions that are faster, more

An efficient, integrated automation platform can bring numerous benefits to both machine builder and end-user alike, but it’s also crucial that today’s machines can adapt to different applications quickly and easily

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efficient, more flexible and more reliable, while remaining competitively priced.

The conundrum is how to incorporate the best that new technology has to offer, without significantly increasing the cost to the customer.

One of the key areas in which machine building has improved is speed. With manufacturers continuously looking at ways to improve production line efficiency, the preferred approach is to increase line speed, maximising the throughput of the machine to produce more products, faster. While automated inspection is now widely adopted in modern manufacturing systems as machine speeds have increased, vision systems haven’t been able to keep up and in some cases have become the limiting factor on a production line. Recently launched, Omron’s FH vision systems are built for speed so bottlenecks caused by inspection solutions are now a distant thought.

When selecting the right technology for a project, machine builders must ensure that speed goes hand in

hand with productivity; end-users will expect a machine which is not only fast but also efficient, accurate and reliable, producing quality products with a minimum of downtime. Omron’s new Sysmac automation platform, a complete family of automation products encompassing the machine controller, servos, inverters, vision, I/O, safety and robotics, communicates on a single, open high performance network - EtherCAT. Programmed from within a single software package, Sysmac Studio, it promises the highest possible performance while accelerating development time and helping to reduce and eliminate programming errors.

An efficient, integrated automation platform can bring numerous benefits to both machine builder and end-user alike, but it’s also crucial that today’s machines can adapt to different applications quickly and easily. With manufacturers constantly expanding and improving their product range, flexibility is key and machines that can facilitate production line modifications are more in demand than ever before. Omron’s new Fieldbusenabled N-Smart range of sensors can be configured automatically from the machine controller. This particularly benefits companies with high levels of product changeover, negating the need for manual reconfiguration during changeover periods which eliminates human error, reduces downtime and improves machine efficiency.

So, with speed, efficiency, productivity, minimal downtime and flexibility high on the agenda of today’s manufacturers, remaining competitive on price in the face of alternatives from low-cost economies would seem an impossible achievement for the UK machine building sector. However this is not necessarily so. The key to fulfilling all customer requirements – including value for money – is to approach a project holistically. When making their technology selection, machine builders should bear in mind the overall benefits of a system versus the price of individual components. It is therefore crucial to consider the lifetime cost benefits of a system to the end-user, not just the initial purchase price.

Fortunately, the latest automation technologies provide machine builders with all the tools they need to develop superior machine designs more quickly and cost-effectively.

Food & Drink Automation

Manufacturing Technologies

A new voice in automation With an already well-established voice in the UK food and drink sector, Christine Tacon is ready to step up the sector’s automation capabilities.

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ewly appointed Groceries Code Adjudicator Christine Tacon has been tasked with ensuring supermarkets treat suppliers fairly and lawfully, with her role as GCA aiming to positively effect on confidence in much needed automation for the food sector.

Tacon has created much interest up and down the supply chain

There is clear evidence that the reluctance to adopt automation is in part driven by squeezing of supplier margins and lack of contracts from multiple retailers

already, naming and shaming the worst offending multiple retailers throughout the press. She also has the ability to levy substantial fines.

The former boss of the Co-operative Group’s farming business will join Michael Portillo in addressing the PPMA Show on September 30, explaining at the first day’s seminar programme that she is keen to resolve issues affecting the entire supply chain, thereby encouraging greater investment in automation within the food sector.

Underlining her commitment to improving conditions, Tacon is keen to hear indirectly as well as directly from suppliers, either personally, anonymously or through a trade

association – and this doesn’t just mean front-line organisations such as the Food & Drink Federation or the National Farmers Union; it also includes the Processing and Packaging Machinery Association (PPMA).

According to Grant Collier, PPMA Group’s head of marketing, Tacon’s appointment has significant implications for PPMA members.

“This is good news as far as automating the food industry is concerned, and also for our members, most of whom supply machinery to the sector,” Collier said. “After surveying 367 manufacturers that took part in the Government’s Automating Manufacturing Programme there is clear evidence that the reluctance to adopt automation is in part driven by squeezing of supplier margins and lack of contracts from multiple retailers. The Adjudicator’s actions will hopefully change this culture and enable much-needed automation of the UK’s largest industry if it is to remain competitive.

The adjudicator is willing to answer questions and may meet with anyone in private at the show too”.

The UK’s food sector is a long way behind competitive nations both in Europe and the Far East with a slow uptake in automation, yet is witnessing how successful this is currently in the booming British automotive industry.

The Grocery Code Adjudicator is determined to shake up the food sector, her appearance at the PPMA Show 2014 is not to be missed.

PPMA Show 2014 Michael Portillo will conduct the official opening of the show with his support for British manufacturing and then tour the exhibition. The PPMA exhibition will showcase hundreds of working solutions to automation and robotics across the manufacturing sector.

Hear Christine Tacon live at the PPMA Show 2014, 11am, Tuesday, September 30, at the NEC Birmingham. www.ppmashow.com

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 69

PP Electrical Systems

Manufacturing Technologies

Making sense of the outsourcing dilemma

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Tony Hague, managing director of PP Electrical Systems, explains why an increasing number of OEMs are choosing to outsource some of their operations both strategically and successfully.

he vast majority of OEMs (Original Equipment Manufacturers) see some form of outsourcing as a key, fundamental part of their overall production strategy.

The days of companies being completely vertically integrated where they build every single part of the machine in-house are in the majority of cases, long gone.

Why? Simple economics born from a marketplace where competition has become global not local, ensuring costs associated with 100% vertical integration have become unbearable. In fact, it is sad to see housing estates and supermarkets springing up on the once factory sites of UK OEMs that reacted too slowly to change.

Looking at it positively, what benefits can outsourcing bring to an OEM? They are many and varied but the obvious drivers are: Reduced operating costs Elimination of unnecessary stock and reductions in work in progress (WIP) – usually results in improved cash flow Improved manufacturing lead times, which in turn can lead to securing more orders Flexible capacity, up and down, reducing the need for costly sub-contract labour as a reaction to increase in build requirements. Equally not having to manage redundancy or some form of “lay offs” when demand decreases Ultimately, you should benefit by managing risk in a way that creates a competitive advantage for your organisation

Whilst the benefits of outsourcing can be significant, equally the cost of getting it wrong can be damaging

Most OEMs fully understand where their core competence lies and invest in those processes that add the most value to their organisation. By sub-contracting noncore competencies to organisations that specialise in those processes, an OEM can in effect have the best of both worlds.

While the benefits of outsourcing can be significant, equally the cost of getting

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it wrong can be damaging. The biggest danger is selecting either the wrong processes to outsource, or indeed the wrong outsourcing partner.

Depending on volume and complexity of the product and process to outsource, you need to consider what you want from an outsourcing partner: Size. Are they matched to your needs? Too small – can they cope with your demand and growth, too large – would you be a customer that lacked importance?

Location. UK, Europe, Asia – consider lead times, logistics, communication, degree of management and potential issues surrounding local legislation.

Skillset. Can the outsourcing company demonstrate beyond any doubt that it has the skills necessary to provide you with consistent quality for the required product/ process – or does it just ‘think’ it can do it?

Experience. Can they demonstrate a proven track record? Ask for details of their key customers, ask for testimonials, and then ask to be put in contact with their clients so you can talk to them directly. They should be happy to oblige.

Ownership and financial stability. In the same way you would look at the credit worthiness and structure of a potentially strategic customer…do the same checks on the subcontracting company.

To get the maximum benefit from outsourcing, you should look for your chosen partner to add maximum value as possible by supplying the “product/ assembly” at the highest quality level. The ‘biggest bang for your buck’ approach!

At PP Electrical Systems we have worked with our customers to identify innovative ways in which we can create solutions that have control and automation at their heart, whether that be electrical, electronic, mechanical, hydraulic or pneumatic.

It is the ability to combine these skillsets that allows more complex, and ultimately far more valuable solutions, to be delivered to the customer.

PP Electrical Systems are an acknowledged leader in the provision of control and automation solutions to a wide number of OEMs in a diverse range of industry sectors, including machine tool, food processing, packaging, printing, scientific equipment and semiconductor processing. www.powerpanels.uk.com @PP_Electrical

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WithAccident labour costs often being the single largest cost for many The Prevention in Manufacturing conference will organisations, this event is an essential ‘must attend’ for manufacturers looking to increase workforce flexibility and reduce avoidable costs. focus on best practices to increase financial, human and time efficiencies, understanding the positive effects of a well implemented health and safety strategy and methods for increasing employee engagement within the workplace to Hilton Metropole Hotel, Birmingham (NEC) increase productivity and overall safety.

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Growing up AGC AeroComposites, manufacturers of aerospace and defence solutions, and training and consulting firm, Global Integration share their experiences since embarking on a journey of training and development as part of the £110m Sharing in Growth programme.

not meeting delivery times, mostly due to lack of skills and capability within their organisation.”

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ecognising the barriers to SME growth, the £110m Sharing in Growth programme supports the UK aerospace manufacturing sector, with £50M of funding through the Regional Growth Fund. Through a network of approved partners, the programme provides access to strategic training and development. One approved partner is specialist leadership training provider, Global Integration.

The right soil

The UK aerospace sector is the European leader and global number two. Its capabilities in the manufacture of some of the most sophisticated and high-value parts of modern aircraft has created a high-tech and high-skill industry of 3,000 companies and 230,000 employees in the UK. Many of these companies are SMEs, which often find managing rapid growth as problematic. To grow,

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these companies need to invest in training, develop lean strategies to compete with increasing competition and create an organisational environment which embraces growth.

Andy Page, CEO for Sharing in Growth commented: “The UK has 17% of the market share in aerospace, but manufacturers need to grow and retain this position. Two thirds of aerospace suppliers are not investing enough in technology and need to improve their supply chain management, finance and business planning.

“Although the quality of production is excellent, too many companies are

Planting the seeds

AGC AeroComposites is a recent beneficiary of the Sharing in Growth programme. The firm has three UK sites which provide advanced composites and metal components for the aerospace, defence and power industries.

The company was approached by Rolls-Royce about Sharing in Growth. Recognising the benefits of joining, AGC AeroComposites went through a due diligence process to be accepted onto the programme. This process ensures manufacturers have the capability and capacity for growth and evaluates areas where training and development would help the organisation to grow.

However the company needed additional support for corporate integration and team working. Much of this type of training is beyond the pockets of SMEs, but Sharing in Growth helps make it accessible.

Global Integration worked closely with the company’s leadership team to evaluate their internal communication and develop more efficient working practices.

The course included six days of leadership training covering five key areas: communication; conflict; control; community; and co-operation. Each area was tailored to AGC AeroComposites and the issues it faced day-to-day as the company grew.

Sharing in Growth

Two thirds of aerospace suppliers are not investing enough in technology and need to improve their supply chain management, finance and business planning Andy Page, Sharing in Growth

The training is tools-based experiential learning, providing leaders with practical tools immediately applicable to its situation. The leadership team gets several opportunities throughout the modules to practice and receive feedback on their communication abilities through peer reviews.

Phil Stockbridge, director at Global Integration comments: “The training brings the organisation’s leaders together in a forum where they can all work and participate together.”

New shoots

Leaders will receive follow up training, scheduled 12 weeks after the initial session, to see how the techniques have been used and to reinforce the skills and knowledge learned. Key performance indicators have been set to measure progress on a quarterly basis which includes a health-check survey for employee satisfaction that can be compared to other, similar organisations.

Steve Smith, president, AGC AeroComposites EMEA, is a strong advocate for the Sharing in Growth programme and the overall benefits it brings to the organisation.

“In larger organisations it can take a few years to see the benefits of this type of training and development, yet in SMEs it can bring instant improvement and rapid change. We have already become more focused, more efficient and more competitive as a result.

“Sharing in Growth has pulled together a programme of the best partners in the industry, which we probably would never have access to, or if we had, it would have been a much slower and far more expensive process.

Finance & Professional Services

The demands of supply ’s Victoria Fitzgerald caught up with Andy Page, CEO for Sharing in Growth and Steve Smith, president at AGC AeroComposites EMEA to discuss how crucial the scheme is for SMEs supplying the flourishing aerospace industry.

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he aerospace industry is expected to double in size in the next decade, with a forecast for 27,000 new passenger aircraft and 40,000 commercial helicopters by 2030. For SMEs to sustain growth and meet demand they need comprehensive support.

Sharing in Growth aims at raising the capability of UK aerospace suppliers by providing funding for training and development, advising on exports and growing the number of jobs in the aerospace industry.

Speaking with , Andy Page, CEO for Sharing in Growth said one of the biggest obstacles facing the sector at the moment was a large gap between the aerospace primes in the UK and the tier one suppliers.

“They are often SMEs that have plateaued at roughly 150 employees with a turnover of £10-15m. They struggle to grow to mid-cap and find it difficult to support growth beyond that. This initiative is putting investment back into UK firms and providing companies with substantial levels of best-in-class training to help them compete as a mid-cap, resulting in a meaningful change in the UK aerospace supply chain.”

Steve Smith, president at aerospace supplier

AGC AeroComposites EMEA also commented, saying the “intervention has come at a great time.”

“We were rebranding and looking to implement a lean initiative with our Derby site under new management, so this is the time for a big change.

“The scheme has been running at our Derby site since November 2013 and is an intensive four year programme. Our main focus so far has been on training and in depth diagnostics. We are now just entering the stage where we are starting to drive improvement into the business using key metrics for each facility in Derby and Yeovil to measure the improvement.

“This process will improve staff engagement and the true litmus test of its success will be year on year sales increases.”

By 2030:

commercial helicopters

new passenger aircraft

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 73

Halving time to market

IT in Manufacturing

From the outset, we recognised that the move to a more proactive and holistic design process was going to be more challenging, and would demand the most from Rotork as an organisation

The market calls Contributing editor Malcolm Wheatley finds out how Rotork Gears halved its time to market.

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art of FTSE 250-listed industrial giant Rotork, Leeds-based Rotork Gears manufactures a wide range of valve gearboxes and associated accessories, including switchboxes, solenoids, pedestals and extension spindles.

But after a high-level review of the company’s new product introduction processes had identified a number of weaknesses, R&D engineering manager Steve Watkins recognised the need for changes in the way that the business developed its product portfolio.

“We wanted to reduce our time to market, but also we wanted to find ways to better manage the new product introduction process itself. It was taking too long for new products to build up a satisfactory level of demand,” he

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explains. “We also wanted to develop products more proactively. Rather than react to the needs of just one or two customers, it made sense to look for opportunities to develop solutions that might meet the needs of many more customers.”

Attendance in late 2012 at an Institution of Mechanical Engineers training programme highlighted a way forward. The course, led by Harvey Leach, a principal consultant with specialist manufacturing consultants The Consultancy Company, had suggested a number of practical steps that Rotork could take to improve its new product introduction processes.

Accordingly, says Watkins, Rotork engaged The Consultancy Company to help the business put these improvements in place. The project, it was agreed, would be partly fulfilled onsite, and partly fulfilled through ongoing telephone support.

“In terms of the objectives, the most straightforward parts of the remit were reducing the time to market, and speeding up the acceleration of demand for new products,” says Leach. “From the outset, we recognised that the move to a more proactive and holistic design process was going to be more challenging, and would demand the most from Rotork as an organisation.”

Several changes were put in place, explains Watkins. Upfront economic feasibility studies helped to focus resources more effectively, while a move to ‘stage gate’ planning helped to ensure designs were fully-optimised before investment in tooling and equipment began. Clearer processes were put in place, as well as better documentation.

“There was a large portfolio of ongoing design projects, each one with its own timeline and challenges,” says Leach. “One of our priorities was to reduce the number of projects in hand at any one moment, in order to move projects through the pipeline more quickly.”

And one year on, reports Watkins, the product development cycle at Rotork has been halved from an average of 3.5 years down to less than two.

What’s more, the development team is also seeing a rough doubling in the percentage of products sold that are either new or recently introduced.

And the more holistic, proactive design process?

“It’s obviously more difficult,” he concedes. “But we’re seeing fewer problems, and capturing them sooner— which is promising.”

Edenhouse

IT in Manufacturing

Raising the bar For many in the world of Microsoft Dynamics AX, Edenhouse will be a new name. Not for much longer perhaps, reports IT contributing editor Malcolm Wheatley.

A

n accomplished partner is bringing its skills and capabilities to the world of Microsoft. Previously specialising just in SAP, or integrating SAP with Microsoft Dynamics, Birmingham-based Edenhouse is making waves by entering the Microsoft marketplace in its own right.

For years, manufacturers have zealously pursued an agenda of ERP consolidation. Gone are the days when different divisions or overseas subsidiaries were permitted to use different ERP systems. Instead, manufacturers have focused rigidly on identifying the best system for the business, and then standardising on it.

It’s a policy that has made excellent sense, with advocates pointing to cost savings and the greater ease of maintaining a single system in terms of IT resource.

But change is afoot, says Paul Solomon, chief executive of IT consultants and implementation specialists Edenhouse Solutions. And it’s a change that is directly affecting Edenhouse’s own business and go-tomarket offering.

After years of single-mindedly focusing on SAP implementation and support, and building a deep body of expertise in implementing SAP within manufacturing businesses, Edenhouse is now offering those same capabilities in terms of Microsoft Dynamics AX. “Increasingly, we’re seeing a two-tier or multi-strand approach to ERP,” says Solomon. “For instance, manufacturers might have an SAP ERP system at the core of their business, but have Microsoft Dynamics AX in their smaller operations or subsidiaries which don’t need the full complexity of an SAP system.”

What’s more, he adds, in the aftermath of a merger or acquisition, manufacturers are also taking a fresh look at the logic of consolidation onto a single SAP platform.

“Once, you would complete a merger or acquisition, and then push to migrate away from Microsoft, and on to SAP,” observes Solomon. “This is no longer the case. Companies are saying: ‘Why abandon a perfectly good ERP system and the sunk cost of its licenses, when integrating it to SAP is cheaper and simpler than migrating to SAP?’ Particularly when, in the midmarket, there’s a very valid argument

In the manufacturing area, we like to think that we have an unrivalled track record in implementation, support and aftercare that’s second to none

that Microsoft Dynamics AX is a more intuitive solution, and one that offers greater ease-of-use.”

Consequently, it seems a growing proportion of Edenhouse’s blue-chip customer base has been asking the firm for help with Microsoft Dynamics AX. “In the manufacturing area, we like to think that we have an unrivalled understanding of ERP, with a track record in implementation, support and aftercare that’s second to none,” says Solomon.

“We have a deep understanding of business processes, solid industry expertise, and an operation that’s 100% UK-based, delivered by seasoned industry professionals.”

All of which, he adds, made it very straightforward for Edenhouse to quickly move on from integrating Microsoft Dynamics AX to SAP, to actually becoming a full Microsoft partner, endorsed by Microsoft.

“When you compare SAP with Microsoft Dynamics AX, there are an awful lot of commonalities: they speak the same ‘language’, and are built on very similar platforms. And rather than work with two implementation and support partners—one for SAP and one for Dynamics AX—we’re giving our customers the option of working with a single implementation and support partner.”

And now, with the launch of EdenDynamics, Edenhouse’s Microsoft Dynamics AX expertise is available to all - manufacturers simply looking for Dynamics AX implementation support or aftercare, without any SAP footprint whatsoever.

“There are, of course, other Dynamics AX partners out there,” sums up Solomon. “But with our blue-chip heritage and FTSE-250 customer base, we like to think that we’re raising the bar.”

Paul Solomon, Edenhouse

July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 75

Martin Aerospace

IT in Manufacturing

GET IT TOGETHER

Bringing an entire company’s processes under one IT system will always entail monumental effort.

But can the process be simplified?

Martin Aerospace, based in Lanark, Scotland, is a global supplier of precision manufactured products to aerospace and other quality critical industries.

IT manager Andrew Wallace explains the major challenges the company faces.

‘‘Q

uality control and traceability is central to our business. Not just at a batch or individual product level, but right down to every process on every raw material item. And because we deal with exotic and very expensive materials, we aim to maximise the yield for every batch produced.” Mr Wallace says.

Another challenge for the company lies in managing the flow of work to and from its list of approved subcontractors, especially for complex jobs which may have as much as ten distinct process operations including a range of subcontracting operations and take up to six weeks to finish.

Prior to investing in EFACS from Exel Computer Systems plc, the

76 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

company relied on a mixture of complex spreadsheets, five disparate IT systems and good old pen and paper. This meant that it was almost impossible for anyone to accurately identify where any particular job was at any time on the production floor. The company also had zero visibility of the true costing of each process and ultimately it was only at the end of a production run that costs could be accurately identified and therefore any profit determined. Finally, the confusion surrounding data added to a general tendency for people to trust their gut instinct over anything the IT system said.

Growing pressure from customers requiring Martin Aerospace to be working with the latest manufacturing business systems combined with targets

set by the board which were becoming increasingly impossible to hit meant change was required. As Wallace recalls, “from accounts through stock control, from traceability through to real-time production control, it was immediately apparent that EFACS was the system that stood out as meeting all of our needs.” Further discussions took place with RAD Software, the Scottish partner of Exel before Martin Aerospace invested in EFACS. The company was soon fully up and running on EFACS with the benefits beginning to show. Arguably one of the most notable was the speed and simplicity of generating each unique works order, complete with BoM and routing information. Every process step could be logged in real-time, thereby ensuring the system was fully up to date.

The confusion surrounding data added to a general tendency for people to trust their gut instinct over anything the IT system said This brought immediate and massive improvements in visibility across the entire company.

Another area which benefited from the outset was purchasing and stock control. With EFACS the company is able to confidently buy only what it needs when it is needed, which Wallace says has saved “an awful lot of money.”

Furthermore, the improvement in cohesion between different areas within the business resulting from improved visibility combined with the consistent accuracy of EFACS has helped to win over initial suspicion about using a company-wide system.

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Upgrading ERP Systems

IT in Manufacturing

Afraid to upgrade?

Don’t be.

The peril of upgrading your ERP system doesn’t have to be as scary as you think.

Solution overview

P

ermastore Limited, an internationally recognised UK designer and manufacturer of bolted modular structures has been an Epicor customer for many years.

After initially purchasing Epicor Vantage, they decided to upgrade to the nextgeneration ERP solution; Epicor ERP. “Vantage had served us well and made a huge difference to the business,” says Simon Stevens, business systems development manager at Permastore.

“But we had reached a point where

We moved in excess of 160,000 items of data over 40 DMT imports Simon Stevens Permastore

78 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

we knew that to get the features we wanted, take advantage of new technology, and integrate our ERP system with plant machinery; we would have to upgrade our systems.”

Upgrade challenges

Work on the upgrade began in ernest, and the planning team decided that it wanted to create a clean deployment of Epicor ERP and migrate the data across rather than simply applying a software update to Vantage. This would enable the cleansing of the data but would make the upgrade more complicated.

Assembling a team of seven from across all departments, they had originally estimated that the data migration would take two-three months, however with the Epicor Data Migration Tool (DMT), this was slashed to two-three weeks.

The DMT captured errors, allowed stop/start importing and greater granularity over what was (and was not) transferred. The DMT also allowed the import and transfer of dynamic data through additional tools built using DotNetIt. “We moved in excess of 160,000 items of data via over 40 DMT imports,” says Stevens.

The team also used the upgrade process to revise all of its existing configurators to take advantage of new features and interface within Epicor ERP, without touching the base code.

The benefits

Permastore has been able to conduct the upgrade from Vantage to Epicor ERP through a clean installation; something the team did not believe would have been possible without the Data Migration Tool, cutting the migration phase from 2-3 months to 2-3 weeks.

“The DMT paid for itself many times over and made an incredible difference to the deployment process, “adds Stevens. “It allowed us to focus on other aspects of the upgrade, and cut the time to go live. If we had not had the DMT our only option would have been to upgrade and cleanse the data later.”

At its heart, Epicor ERP has a business process management (BPM) engine that allowed Permastore to define their unique process rules and procedures, without relying on external consultants.

“We are continually looking at how technology can bring greater efficiency to our business”, says Ruth Joy, Permastore’s planning control manager. “This deployment makes our business system more agile and able to adapt quickly with the business. Epicor is playing a key part in our continued performance and we can now process information very quickly.

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July/August 2014 | Issue 6 | Volume 17 | www.themanufacturer.com 79

LAST WORD

Intelligent interactions between machines, mobile phones, embedded sensors in biological material and more, offer new potential for servicebased product sales and innovation

Decisions decisions Who’s going to grasp the data-rich nettle in the path of the Internet of Things?

‘‘T

he bounding condition in deploying the Internet of Things (IoT) is not going to be the deployment of devices but rather the management and analysis of the data coming off those devices.”

So wrote technologist Dan Woods in Forbes magazine in April 2014, and it’s a view which is echoed by many across the software and communications technologies industries.

There’s no doubt among this crowd that our world is on the brink of being transformed by an explosion of connectivity between smart devices – devices which, as of 2010, outnumber human beings on planet Earth.

Intelligent interactions between machines, mobile phones, embedded sensors in biological material and more, offer new potential for servicebased product sales and innovation say enthusiasts. And while some may be effected to a greater degree and/or more quickly than others, no one will be left untouched.

To hear technologists talk about the revolution in competition and society that the IoT is about to unleash is to imagine

80 www.themanufacturer.com | July/August 2014 | Issue 6| Volume 17

a technological utopia in which a bright light is suddenly shone on what PTC CEO Jim Heppelman recently called “the dark side of the moon”. In other words, products in the field (bit.ly/ Darksideofmoon).

Case studies from diverse IoT disciples including fishermen, car makers and defence companies show that this vision of preemptive service, based on newly effective performance and usage data is, from a deployment perspective, relatively easily achievable. But there are wrinkles in the canvas which still need to be pulled flat – and which could tear in the process.

The rub is data – specifically, big data and how to manage, engineer and decide ownership of it across personal,

geographical, political and commercial boundaries – which may include collaborative groups of companies as well as individual organisations.

This is not a new realisation. An increasing mass of articles, published internationally over the past few years by publications including Computer Weekly, CIO.com, Forbes and countless technology blogs, explore the way in which big data and the IoT will change skills sets and business models for companies in multiple sectors around the globe. Many of these articles also cite security and confusion over data ownership as barriers to full blown exploitation of the IoT. However, while the barriers have been widely acknowledged, it seems that action on breaking them down is moving slowly.

Firms like PTC, which have identified exploitation of the IoT as a seriously lucrative goal (McKinsey thinks the sale of IoT infrastructure products will create $1.9trn by 2020) are working hard to ensure data security. But the trouble is, they don’t know what rules they are developing for.

Despite increasingly vocal calls for an international body for commercial data regulation, there is little clarity about who is responsible for creating and enforcing laws for data ownership that can deal with the complex, global nature of big data emanating from the IoT. Action from individual governments or regions is not enough to facilitate this global technology phenomenon.

Just as the challenge of climate change has created a coalition of many global governments to find common standards and targets, the challenge of global data regulation needs ambitious collaboration.

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