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Hot Topic Industry 4.0 The rise of artificial intelligence

Sector Focus Building to succeed What is the state of UK’s machine tool industry and how do events like MACH 2014 put it in the spotlight

Manufacturing leadership Positioning for growth, not survival Is UK manufacturing investment on the right path? Serve yourself Revealing the pathways to advanced service provision for UK manufacturers Innovation is key How Google is pushing manufacturers to innovate

Workforce and Skills Training for the future EEF’s latest £2m investment in skills

ALSO IN THIS ISSUE Mark Eastwood from NatWest talks supply chain Interview with Adrian Haller from Bruderer The case for the UK to embrace automation Lean manufacturing In partnership with:

INTERVIEW Richard Smith Yamazaki Mazak MD UK & Ireland

www.themanufacturer.com | May 2014 | Vol 17 Issue 4


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Welcome

EDITOR’S INTRODUCTION

Productivity puzzles

In April, GE Oil & Gas was one of several companies to announce the creation of significant numbers of new jobs thanks to investment for additional capacity (p9).

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Such news is, of course, welcome. Indications of growth and confidence must be celebrated, and let it not go unsaid that last month the CBI recorded its highest measure of manufacturing confidence in the UK since 1973. But while I’m reluctant to be labelled a nay-sayer, creating more jobs is not the be all and end all of economic recovery – a fact clearly shown by the Office for National Statistics’ Economic Review, which was also released in April. This publication drew attention to some worrying trends in UK productivity which must be addressed if Britain is to compete as an industrialised nation in the long term. Today, overall productivity in the UK is almost four per cent below its prerecession level and 21% below the average productivity level across the G7 nations.

The interaction between technology and productivity in the light of UK investment culture will undoubtedly form a core theme within this report. Britain has had an enviable surge of confidence so far in 2014 with strong output and orders recorded in multiple surveys. However, we have still not seen the tantalizing investment intentions promised in these same pieces of research translated into reality throughout UK industry. Without a widespread refresh of the sector’s technology base, the UK cannot hope to close its productivity gap with the G7.

Today, overall productivity in the UK is almost four per cent below its prerecession level Moreover, ONS shows where there has been regrowth in productivity since 2008, it has tended to be due to a reallocation of jobs from less productive industries to those with higher levels of output per hour – a much less sustainable way to raise productivity than by making methods of production more efficient and effective. The UK’s productivity puzzle has been targeted for resolution in 2014 by bodies like EEF, MAS and Cranfield University. The latter has this year dedicated its National Manufacturing Debate to the subject.

50 years in the Field. A celebration of New Holland Agriculture’s Golden Jubilee p38

discussion on the implications for industry leaders.

A report to be published by Cranfield this month will shed more light on the role of manufacturing and its various subsectors in boosting or hamstringing productivity growth. It aims to spark

Recent advances in automation technologies to make them more flexible and accessible than before have multiplied the scope for productivity gains, as ’s Automation Advisory Board has been keen to show its case studies (bit.ly/AABautomation). However, production technologies are not the only way to boost productivity. IT investments like ERP systems and business model innovations can have a big impact too and manufacturers will hear about some of the most convincing examples of this at ERP Connect (p14) and Aston Business School’s Spring Servitization Conference (p58) this month. I look forward to seeing you there.

Jane Gray Editor May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 1


Editorial Advisory Board

The Editorial Advisory Board is delighted to announce that Dave Mooney, one of the magazine’s longest standing supporters, has joined the editorial advisory board. Dave will supplement the board’s insight from high performing SMEs, particularly with regards to manufacturing service development and employee ownership.

Deirdre Fox

Tony Hague

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

Ross Meikle

Andrew Churchill Managing Director, JJ Churchill

Simon Edmonds Director, the Catapults Programme

Steve Evans

2 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

Global Manufacturing Director, Accolade Wines

Ben Taylor Assistant CEO, Renishaw Plc

Andrew Peters Division Director, Drive Technologies, Siemens

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

Managing Director, Drallim Industries

D

Director of External Affairs, EEF

Director of Strategic Business Development, Tata Steel

Dave Mooney

rallim makes engineering equipment for the aerospace, industrial and utilities markets. After 20 years in corporate technical roles with BICC, Smiths Industries and BTR/Invensys; Dave joined Drallim and for the last 10 years has proudly run an independent, employee owned, British manufacturer with the mission to create “innovative people, engineering quality, niche products and contract services”. Drallim has won four Manufacturer of the Year awards and Dave is now a regular member of the awards judging panel.

Hywel Jarman

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

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

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

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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Art Director Martin Mitchell

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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

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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.

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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


National Manufacturing Debate 2014 5th Annual Debate

Tuesday 20 May & Wednesday 21 May UK Manufacturing Productivity • Where does UK manufacturing productivity rank against international competitors? • How can UK manufacturing productivity be improved? • Join us to hear from industry leaders and network with key manufacturing professionals from a range of sectors y of

rtes

Cou ta

o Toy

20 May Tour of Cranfield Facilities 21 May Opened by Sir Peter Gregson, Chief Executive and Vice-Chancellor Keynote presentations chaired by Lord Alec Broers Manufacturing Debate presented by Jane Gray (Editor of the Manufacturer)

Keynote speakers and panel members are: • Rt. Hon David Willets MP, Minister for Universities and Science • Dr. Martin Howarth, Director National Centre of Food Engineering, Sheffield Hallam University • Tracey Marsden, Partner, Nabarro • Ian Waddell, National Officer, Unite • Richard Kenworthy, Director Engine Manufacturing Division, Toyota UK • Warren East, Ex CEO Arm Holding Plc and Non Exec Director BT and other engineering companies

Register now. Attendance is free.

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May 2014

08 News and regular columns A summary of manufacturing news and events with commentary on industrial research and policy 18 Naked Engineer Our Naked Engineer is renowned for telling it like it is. So why won’t everyone else? 22 Out & About goes to Crown Paints, Marussia F1 and Havantbased pump manufacturer, Eaton Hydraulics 24 Best of Online What you wanted to read about most on ’s website in April 26 Hot Topic: Industry 4.0 What exactly is industry 4.0 and which manufacturers are already embracing what is being touted as the next industrial revolution? investigates 28 Sector Focus: Building to succeed The UK’s biggest machine tool manufacturing exhibition, MACH 2014, took place in Birmingham in April, playing host to more than 500 exhibitors. But does the growth of the sector’s flagship show illustrate a wider upturn in the industry’s fortunes? 32 Interview From shop floor to director’s chair, Richard Smith explains why his experiences with Yamazaki Mazak have made him loyal for life to one of the best known names in the machine tool industry 35 60 second interview: Adrian Haller, managing director of machine tool firm Bruderer UK, talks about his experiences at MACH 2014 and the challenges facing his sector 44 Special Feature – 50 years in its field The UK’s largest tractor production facility, New Holland Agriculture in Basildon, Essex celebrates its Golden Jubilee 52 Lean manufacturing Lean Management Journal Editor Victoria Fitzgerald reflects on some recent articles featured in ’s sister publication

6 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

CONTENTS

Pillar features Manufacturing Leadership 54 The efficient workplace: Waste is the enemy of any manufacturer that seeks to operate efficiently. But how can you be sure you’ve truly driven it out of your business? 56 Positioning for growth, not survival: Peter Russell, head of manufacturing & industrials for RBS, examines whether UK manufacturing investment is on the right track 58 Serve yourself: speaks with Professor Tim Baines ahead of Aston Business School’s Spring Servitization Conference 60 More than that: How are the big banks getting on board with the three big Rs – reshoring, recovery and rebalancing? Mark Eastwood from NatWest explains

Workforce & Skills 68 Training for the future: EEF opens the doors to its latest investment in future engineering talent 54 Employee of the Month: Katarzyna Kowaliczek, health and safety coordinator, Coca-Cola Enterprises

Manufacturing Technologies 70 Fuel for automation: How automation is building today’s fuel cells

IT in Manufacturing 72 Connecting borders: Using ERP internationally for ‘one version of the truth’ 84 Last Word: Jane Gray speaks with Professor John Perkins about his influential skills report and asks the question: “What next?”


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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.


NEWS

www.themanufacturer.com/news

Company announcements

Most of the metal hardware on the new Shackleton banjo is manufactured by Norfolk engineering companies

The Great British Banjo Company, the UK’s only banjo manufacturer, shipped its first Shackleton banjos to earlyadopters. The Norwich-made banjo is named The Shackleton after Edwardian Antarctic explorer Sir Ernest Shackleton. The company, which is Britain’s first volume banjo manufacturer in more than 60 years, funded the development of The Shackleton with a Kickstarter campaign last autumn, which became one of the top 2% most successful campaigns on the crowdfunding platform. The project generated 150 advance orders and created worldwide media interest. The company has subsequently attracted a further £250k in equity funding. The company is now delivering its first Shackleton Banjos in two model types to customers and will introduce further models in 2014, including a limited edition Centenary Shackleton banjo marking the 100th anniversary of the start of Sir Ernest Shackleton’s Endurance expedition (which will be the first banjo to be played at The South Pole). Watch The Great British Banjo Company’s kickstarter video at bit.ly/1eu1ahv

Google announced its acquisition of New Mexico-based drone manufacturer Titan Aerospace. Although the terms of the sale are yet to be disclosed, the deal is aimed at bringing Internet access to remote parts of the world. Titan’s atmospheric satellites, which are still in development, can apparently stay in the air for as long as five years. The drones’ other uses are said to include atmospheric and weather monitoring, voice and data communications, providing disaster relief and assessing environmental damage. Titan and its staff of 20 employees will stay in New Mexico, and Vern Raburn, chief executive officer, will continue to run the business. In March, Facebook were in talks to buy Titan, but instead bought UK-based solar drone firm Ascenta. Read more about Google’s purchase at bit.ly/1kXomHZ

Skills Graduate starting salaries were shown to have fallen by 11% in the past five years. According to analysis for TheCompleteUniversityGuide.co.uk, the average starting salary for graduates in professional employment dropped by 11%, from £24,293 to £21,702 in real terms between 2007 and 2012. The research, based on returns to the Destination of Leavers from Higher Education (DLHE), showed that the decline in starting salaries for graduate-type jobs is continuing and perhaps increasing. Between 2005 and 2010, graduate-type starting salaries declined by 4%, after adjustment for inflation. However, on a positive note for graduating materials scientists, materials technology was one of just two subject areas showing an increase in starting salaries. Entry level wages in this discipline rose 13% between 2005 and 2010. Read more about the wage decline at bit.ly/1iTPiBk

8 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

A report from the House of Lords Science and Technology Committee revealed a 10% decline in the number of foreign students studying STEM subjects at British universities. The drop in the number of international STEM students in Britain is the first in almost three decades according to the House of Lords Committee. This is a response to “overblown rhetoric” on immigration says the report which also highlights the diametrically opposed ambitions of Prime Minister David Cameron to reduce net immigration to “tens of thousands” of people per year and of Business Secretary Vince Cable to increase the number of international students in the UK by 10%-15% in the next five years. Lord Krebs who chaired the report said in a statement that the Committee had found clear evidence that UK immigration rules were giving foreign students the “cold shoulder” and encouraging them to seek their education in competitor higher education systems. The decline in foreign STEM students is also endangering the quality of STEM education for UK nationals said the report, given the significant levels of funding that international students bring to science, technology and engineering departments in British higher education institutions. Read more about the decline in international STEM students at bit.ly/1hI4K8q


MANUFACTURING NEWS

A big investment at GE Oil & Gas in Newcastle at the old Wellstream Flexibles site could create 152 jobs

Company announcements

GE Oil & Gas announced a £15m investment which will create 152 new UK jobs. With Regional Growth Fund support, the addition of two large manufacturing and storage carousels has increased capacity for deep water pipeline manufacture at GE’s site on the River Tyne. The site designs and manufactures high-quality flexible pipeline products and solutions used in the subsea oil and gas production sector. Two 26m diameter, 3000-tonne manufacturing and storage carousels have been added to its existing 2,000-tonne capacity. The carousels are required to service the growing number of deep-water developments worldwide, and rising demand for larger diameter pipelines that are specifically designed for higher pressure wells. Read more about GE’s expansion at bit.ly/1iTO7lt

Finance

Fifty projects were given conditional funding offers in round five of the Regional Growth Fund (RGF). The Government said it expects the £300m in funding to unlock £1.9bn of additional private sector investment and create or safeguard thousands of jobs directly, while also generating thousands more jobs in supply chains. The RGF is a government pot to create sustainable employment and growth in a wide range of sectors across the country. The fund supports areas that are traditionally more reliant on the public sector to increase private sector investment and encourage businesses to expand. This type of targeted investment helps to boost growth throughout the country and rebalance the economy. Deputy Prime Minister Nick Clegg said: “Today we are investing more than £300 million to create thousands of jobs through the Regional Growth Fund. This is a vital fund that has already helped over 400 projects and 3,500 small and medium sized enterprises. This money will help unlock nearly £2 billion of additional private sector investment that will create sustainable and long-term jobs.” See the full list of company offers at bit.ly/1eDjEfP

Supply chain

Business Secretary Vince Cable announced £100m of funding for UK manufacturers to strengthen domestic supply chains. The money will be delivered t industry via the Advanced Manufacturing Supply Chain Initiative (AMSCI). Speaking at MACH (p28), Business Secretary Vince Cable said: “A strong manufacturing sector is vital to a balanced economic recovery, and I want to ensure that Britain’s supply chains are up to the task of supporting the sector in the long term. 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.” Previous rounds of funding from the AMSCI have supported research for increasing the scale of 3D printing of metals; and resulted in the reshoring of the manufacture of cat’s eyes from overseas. Read more about Vince Cable’s announcement at bit.ly/1im5jDy Large UK manufacturers lost £58m in 2013 due to issues around disruption to their supply chains, according to an April report. The study, released by supply chain management firm Achilles, showed the average loss to each manufacturer amounted to £105,000 last year, despite many of the issues being preventable, according to Achilles chief executive Adrian Chamberlain. A primary reason for the losses was the failure to deliver products of required quality, believed to cost the industry £20.4m. This was followed by the failure to send goods on time, which resulted in a £17.2m loss, with financial failures of suppliers and exposure of firms to litigation both costing companies £7m. Mr Chamberlain said: “In our experience, efforts to improve information about the supply chain work best when whole industries – such as oil and gas – work collaboratively to agree and implement standardised requirements of all suppliers in terms of business critical areas, such as health and safety to reduce the burden of administration.” Read more about these supply chain losses at bit.ly/1im5bnO May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 9


NEWS www.themanufacturer.com/news

Product recalls

Toyota recalled over 35,000 UK cars as part of a product recall of over 6.4m vehicles worldwide. The recall was prompted by three separate issues which affect some RAV4, Hilux, Yaris and Urban Cruiser models. There are 35,124 affected models in the UK. In some RAV4 and Hilux models, Toyota said there was a risk that the driver’s airbag may be deactivated because turning the steering wheel could damage certain circuits, causing the airbag warning light on the instrument panel to illuminate. This fault makes up the largest share of the recall, accounting for 24,785 models manufactured between June 2004 and December 2010. Just over 10,000 Toyota Yaris and Urban Cruiser models built between January 2005 and August 2010 are affected by a spring mechanism locking the driver door. Read more at bit.ly/1gyz404

Contract wins

Aerospace engine manufacturer Rolls-Royce was awarded a £60m contract with the US Department of Defense. The contract will require RollsRoyce to provide support for the F405 engines that power the US Navy’s T-45 training aircraft. Under the terms of the logistics support contract valued at over $100 million, Rolls-Royce will provide intermediate, depot level maintenance and related logistics support for more than 200 F405 engines in the US Navy fleet. The follow-on one-year contract will continue the successful support which has provided the US Navy’s training fleet with guaranteed availability over the past ten years, Rolls-Royce said. Paul Craig, Rolls-Royce president-defense services, commented: “We have been working with the US Navy’s F405 fleet for a decade and we appreciate their continued confidence in our service capabilities. We take great pride in supporting the training of new aviators for the Navy and Marine Corps.” Read more about Rolls-Royce’s contract win at bit.ly/1m85xii RollsRoyce will provide support for the F405 engines which power the US Navy’s T-45 training aircraft (pictured)

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10 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

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NEWS www.themanufacturer.com/news

Closures

Imperial Tobacco announced it is to close two manufacturing sites, including one in the UK, resulting in the loss of 540 jobs. The Nottingham factory has been earmarked for closure along with its French plant based in Nantes. both will bhut down gradually over the next two years with 900 jobs cut overall. Imperial Tobacco cited declining sales as a factor behind the closures. Its Nottingham cigarette factory and distribution centre is currently operating at half capacity. The firm, which produces cigarette brands including Lambert and Butler, JPS and Gauloises, said a consultation on the firm’s restructure plans had begun with unions. Read more about the closures at bit.ly/1nopFgh A Honda distribution centre in Swindon announced the loss of 135 jobs. South Marston Distribution Centre, which is owned by the Honda but operates as a separate subsidiary, is to make the cut backs following an announcement from the Japanese car maker that 500 jobs are to go at its Swindon manufacturing site. SDC, which stores and prepares the parts used to build Honda cars, currently employs 721 people of which 234 are temporary workers. After the cuts have been carried out, the temporary figure will reduce to 99, although a decision has yet to be made as to which individuals will be let go. Read more about the job cuts at bit.ly/1gZIIIq

12 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

The Ford Fiesta is the UK’s top selling car

Industry figures

UK new car registrations have Top selling cars in the UK reached a 10 year high according March 2014 to the latest quarterly figures from 1 Ford Fiesta 25,753 SMMT. Demand for new 14-plate pushed March figures to 464,824 new 2 Ford Focus 16,860 car registrations, a rise of 17.7%. The growth is the biggest seen since 2004 3 Vauxhall Corsa 16,231 when new car registrations reached 4 VW Golf 13,142 466,954, the highest number since the move to twice yearly plate changes 5 Vauxhall Astra 11,359 in 1999. SMMT chief executive Mike 6 Nissan Qashqai 8,858 Hawes said he expected the market to continue to perform positively for 7 VW Polo 8,306 the rest of the year, albeit “at a more 8 Fiat 500 8,136 modest rate,” stating attractive finance deals and advanced technologies 9 BMW 3 Series 7,782 making new car purchasing a serious 10 Toyota Yaris 7,438 consideration for motorists looking to purchase. “New car registrations surged 17.7% in March to 464,824 units, a surprisingly strong level of growth and a reflection of intensifying consumer confidence and the availability of great new products,” said Mike Hawes, SMMT Chief Executive. “Given the past six years of subdued economic performance across the UK, there is still a substantial margin of pent-up demand that is contributing to a strong new and used car market.” See the video at bit.ly/1ktOqaW

SKILLS

Construction began on the new £32m Institute for Advanced Manufacturing and Engineering, which is set to open in Coventry next September. Dubbed as the UK’s first dedicated ‘faculty on the factory floor,’ the joint project between Coventry University and Unipart will provide manufacturing and R&D space for training over 40 undergraduates and post graduates in its first year. Its aim is to develop the next generation of highly skilled, specialist engineers and operational leaders by providing students with direct access to Unipart’s operations. Trainees will work on ‘live’ issues in a real world production environment. All available courses have been shaped by leaders from academia and industry, with a particular focus on design, metrology, manufacturing and mechanical systems.


MANUFACTURING NEWS

European Election

Britain’s manufacturers set out a radical plan to reform the EU and accelerate economic recovery across the region. The proposals were couched in an EEF report titled ‘Europe – A Manifesto for Growth’. They came just six weeks before the European elections in May and follow a business campaign to keep Britain at the heart of the EU. Proposals include a call for a reduction in the number of European Commissioners and the creation of a powerful new Brussels-based red tape taskforce which would have a similar function to the Better Regulation Executive established in the UK. EEF, which represents manufacturers in the UK, from multinational companies to small and medium sized firms, wants to rationalise the number of EU commissioners, currently 28, and re-focus their departments. The industry group behind the report argues there is considerable scope for ‘clustering’ of EU directorates general which currently act in silos and cause a proliferation of policy development. EEF suggested that boards of commissioners could oversee the work of directorate clusters, thereby bringing together,for example, the Directorates General of Climate Action and Energy. EEF believes this would deliver much greater integration of policy as well as reduced costs and greater accountability. Read more about the proposed reforms at bit.ly/1jI00hC

Closures

Newport-based Avana Bakeries is set to close. The Rogerstone firm, which employs 650 staff, will close in the summer following the loss of a multi-million pound cake contract with Marks and Spencer. The contract accounted for 85% of Avana’s produce. Following a 45-day consultation launched by owners 2 Sisters Food Group to avoid closure, the organisation released a statement saying: “During the consultation, we have fully explored all the options available to us since losing what was the principal customer contract for the site. Sadly, we have been unable to find a way to keep the site viable.” Read more at bit.ly/1eu0jxr

Dates for your diary MAY

12-14

The Spring Servitization Conference takes place at Aston Business School. The conference will focus on transforming manufacturers to compete through advanced services rather than products alone and draws together senior executives from global organisations, entrepreneurs leading small businesses, and researchers from leading universities. Find out more on p28 or go to www1.aston.ac.uk/ssc2014

14-15

MEDTEC UK takes place in London. This exhibition for medical device manufacturers includes access to a conference and UKTI business exchange hub to help manufacturers in the sector make the most of their export opportunities. www.medtecukshow.com

20-21

The National Manufacturing Debate is hosted by Cranfield University, with this year’s theme being ‘manufacturing productivity.’ bit.ly/CranfieldNMD2014

JUNE

3-5

Subcon, the UK’s only dedicated national exhibition for contract and subcontract manufacturing, returns to Birmingham’s NEC. This year’s event is set to be the biggest yet, with over 300 subcontractors exhibiting and a stronger than ever participation by UK exhibitors. www.subconshow.co.uk

11-12

Manufacturing: Making a Difference, SMAS Conference brings together over 400 business leaders and senior decision makers from industry and government to celebrate and debate the contribution made to the economy by Scotland’s manufacturers. www.scottishmasconference.co.uk

24-25

The annual Global Manufacturing Festival brings together over 1000 SMEs along with global industry names at the Advanced Manufacturing Research Centre in Sheffield. This year the GMF will also complement the UK International Festival for Business in Liverpool. part of the UK’s International Festival for Business 2014. www.globalmanufacturingfestival.com

JULY

14-20

The Farnborough International Airshow returns. The event brings together the big names from the world of aerospace and celebrates 100 years of aviation history. It will also feature the newly introduced Farnborough Airshow Live, the interactive live stage show with colourful presenting, competitions and interviews. www.farnborough.com See more upcoming events at www.themanufacturer.com/diary

May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 13


UPCOMING EVENTS

ERP Connect

20th May 2014, Ambassadors Bloomsbury, London

The Manufacturer’s ERP Connect has changed the way UK manufacturers approach software selection by minimising the overall time and effort involved in qualifying potential Enterprise Software vendors. ERP Connect is the must attend event if you are looking to install or upgrade your ERP system in the next 1218 months. This unique event offers a one-of-a-kind opportunity for you and your team to see the best in Enterprise Software Solutions in the world, all in one place, all at the same time!

www.erpconnect.co.uk

Flexible Workforce Future Factory Series event 9th July 2014, Manchester

Providing practical opportunities FREE to attend for the manufacturing industry for subscribers of to gain knowledge and discuss The Manufacturer how best to create an engaged and flexible workforce. Covering topics such as annualised hours and human capital management, this meeting will discuss how companies can maximise workforce effectiveness by ensuring their staffing plans match their needs and future business plans, ultimately ensuring a company gains maximum ROI from their human capital.

themanufacturer.com/flex2014

Additive Manufacturing and 3D Printing Future Factory Series event 11th June 2014, Birmingham

With the agility in innovation and FREE to attend rapid pro-typing that additive for subscribers of manufacturing creates the The Manufacturer technology is rapidly developing and will soon begin to contribute to the production process as well. The conference will provide delegates with the knowledge and expertise needed to innovate, develop and enable business growth through the use of additive manufacturing processes and the latest 3D printing technologies. Examining the latest developments in the sector, services available from additive manufacturers, 3D printers and how to seek consultative support.

themanufacturer.com/additive2014

Energy Management Future Factory Series event 9th July 2014, Manchester

Volatile energy costs, security FREE to attend of supply and environmental for subscribers of responsibility has required many The Manufacturer UK manufacturers to create and implement integrated strategies that focus on energy procurement, efficiency and security. The conference will provide delegates with the knowledge and expertise in developing their own successful energy strategy. Building on the success of last year’s event the 2014 iteration of Energy Management will provide practical opportunities for manufacturers to learn from industry experts, academics and government officials to gain insight into manufacturing best practice.

themanufacturer.com/energy2014

Innovation through Technology Future Factory Series event 11th June 2014, Birmingham

Energy Management Future Factory Series event

The conference will provide FREE to attend delegates with examples of the for subscribers of latest innovations being utilised The Manufacturer at manufacturing plants and how they are being employed to deliver exciting new products as well as efficiency and quality improvements. Demonstrating some of the most exciting and the latest research from academia providing the ideal opportunity for manufacturers to engage with their peers to gain a better understanding of the new technologies that are or will soon be available.

9th July 2014, Manchester

themanufacturer.com/innovate2014

themanufacturer.com/sustainability2014

14 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

With the huge challenge of FREE to attend developing sustainable processes for subscribers of and technologies, whilst The Manufacturer ultimately conserving natural resources for future generations and reducing costs sustainability should be at the heart of all board room discussions. With the event covering topics such as reducing the environmental impact of new production facilities; reducing the impact of all existing factories and ensuring new legislation is not just met but that expectations are exceed.


FREE to attend for subscribers of The Manufacturer

See website for more details.

Utilising 3D printing and additive manufacturing to create an innovative and rapidly developing business

AddiTivE MAnuFAcTuRing And PRinTing

11 June 2014 Birmingham

The conference will provide delegates with the knowledge and expertise needed to innovate, develop and enable business growth through the use of additive manufacturing processes and the latest 3D printing technologies. The event will advise manufacturers on the latest developments in the sector, services available from additive manufacturers and 3D printers for innovation projects and how to seek consultative support. It will also consult on how engineering firms can grow their service offering by becoming additive manufacturers while addressing the barriers companies currently face.

Speakers include: Neil Burns Director, Croft Filters

Researched and developed by:

Sponsored by:

Daniel Johns Chief Technologist, GKN Aerospace

Mike Adams CEO, HiETA Technologies Ltd

www.themanufacturer.com/additive2014 @TheManufacturer

#TMAdditive


POLICY POINT & BACK TO SCUOLER

Policy Point.

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Sahar Danesh, principal policy advisor for manufacturing, Institution of Engineering and Technology, reflects on the results of IET’s latest UK manufacturing report.

he Institution of Engineering and Technology (IET) has just published the An Insight into Modern Manufacturing report. It was produced in partnership with the Royal Academy of Engineering and the Institution of Mechanical Engineers under the banner of Engineering the Future. It tells the story of present day manufacturing in the UK from the perspective of the manufacturers themselves. The manufacturers we interviewed gave us their insights into how they started up their business, what sustained them through the recession and what government can do to help them thrive as the economy starts to recover. Our report uses the manufacturers’ words and experiences and sets out a snapshot of the issues that matter to UK manufacturers. One of the key findings in the report was that there is a strong sense of continuity and forward planning that characterises manufacturing business, so any support to manufacturing also needs to be reliable in the long-term. This applies not only in obvious areas such as financing, but to broader strategic factors such as business advice, regulatory issues and research funding. Government support for manufacturing was seen as effective - when it worked - but there are sections of manufacturing that feel they do not get any support. Larger manufacturers who have the resources and time to navigate the complex and time consuming applications for government schemes snap up opportunities. But this leaves many SMEs and supply-chains to fend for themselves. A recurring theme that was raised by almost all contributors was the challenge of finding skilled workers. Their concern over the quality and quantity of skilled technicians and graduates and the output of the UK education system was the single strongest message that manufacturers wanted to send to government and academia. Many organisations have invested in apprenticeship schemes - even in times of financial hardship - and have been consistently training young workers so that organisations in effect, grow their own workforce. Individual companies have their own strategies and routes to success. This is a source of strength and resilience. Our report hopes to dispel some of the long standing myths about manufacturing and promote the fact that UK does indeed still make things.

16 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

Back to scuoler.

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EEF’s Terry Scuoler lays down his recommendations for the new EU Parliament and Commission.

here is a growing likelihood that the new EU parliament will be generously peppered with a euro-sceptic rump of political representatives from UKIP to the Alternative für Deutschland to France’s Front Nationale and PVV in the Netherlands. Many in Brussels recoil at the prospect but the Commission and the Parliament have only themselves to blame for failing to grasp the growth agenda during the current mandate and reform to support a more competitive and successful European economic model. Britain’s relationship with the European Union is vital to the long term interests of industry. However, Europe has a painful history of failing to tackle economic problems resulting in political meltdown and economic crises. European leaders now talk about the need for reform and herald a new industrial strategy which has competitiveness at its heart. This is very welcome. The soon to be elected parliament and the newly formed Commission must grasp the opportunity to drag the Eurozone out of the economic doldrums of the last few years. This must involve taking a fresh look at embracing and delivering a new industrial strategy for Europe that supports all member states and puts the EU back on the path to sustained growth. UK manufacturers could not be clearer on this matter. Eighty five per cent of EEF’s members want the UK to remain part of the EU, to be at the heart of leading change and at the centre of decisionmaking in a competitive Europe. However, they want to see a reformed EU, one that is more dynamic and focused on economic as well as social goals. They want to see an EU that is fit for a changing world, doing everything possible to reduce red tape and promoting a robust market economy while securing multi-billion pound trade deals in key markets. While reform of the EU is critical, manufacturers’ support for Britain’s membership is not conditional on this change. They want to see reform from within, in particular a leaner and more effective Commission in Brussels, one that is reorganised to prioritise economic recovery and sustainable growth. Read Terry Scuoler’s suggestions for a more effective Commission at http://bit.ly/1sFQLn1


APPOINTMENTS

Fergus Clark

Picodeon

Coating technology specialist Picodeon appointed Fergus Clarke as its chief executive officer. The appointment of Mr Clarke, with over 25 years of global high technology management experience, coincides with

Peter Lawton

the company experiencing strong interest from OEMs in Battery, LED, Optical, and Life Science applications. Nikolay Danilov, chairman of the board, at Picodeon, said: “We are delighted to have Fergus Clarke join

our team. Fergus’ depth of leadership experience at Applied Materials and smaller high growth companies will be important as Picodeon grows its business to meet the demand from our customer base.”

magazine, Mr Lawson took up his new role in late April. He replaces Wendy Williamson, who joins the Independent Automotive Aftermarket Federation (IAAF) as chief executive. SMMT chief executive Mike Hawes said: “The aftermarket is one

of the most diverse and dynamic business areas we have in the UK automotive industry. Peter’s existing relationships with the sector and knowledge of the issues it faces will allow SMMT to enhance its aftermarket activities and offer an ever-improving service to our members.”

pharmaceutical, chemical, cosmetic and DIY markets, promoted Golder from his role as an in-house service engineer. Steve Ryan, Allen Coding’s UK sales & OEM manager, said: “His technical ability and product knowledge combined with

natural customer relationship skills made a move into sales the natural next step for him. “We look forward to expanding existing business, developing new markets and building the Allen Coding brand in the South of the country.”

SMMT

The Society of Motor Manufacturers and Traders (SMMT) appointed Peter Lawton as its aftermarket development manager. After nearly 15 years as an automotive journalist and the last three years as Editor of CAT (Car and Accessory Trader)

Darren Golder

Allen Coder

Allen Coding promoted Darren Golder to sales engineer, where he will be responsible for driving growth across the southern regions. The manufacturer of marking and coding equipment for the food, beverage,

Gunnar Skagerlind

Siemens Financial Services

Siemens’ Financial Services unit appointed Gunnar Skagerlind as sales leader for industry sector in the Nordic region, covering Sweden, Finland, Norway and Denmark. Skagerlind was brought in to further develop the market for equipment finance in the Nordic industrial sector and will be responsible for establishing

strategic partnerships with equipment vendors and Original Equipment Manufacturers (OEMs) in industry, construction and transport. He brings a wide range of experience from previous company Société Générale, where he worked as Nordic sales manager for the industry market for over five years.

Carl Perrin, AME Coventry University and Unipart appointed Carl Perrin as director for the recently established Institute for Advanced Manufacturing and Engineering (AME). Located at Unipart’s Foleshill site in Coventry, Mr Perrin will help orchestrate the new £32m initiative which aims to develop the next generation of engineers and operational leaders by providing up to 40 students every year with direct access to Unipart’s operations. Mr Perrin, who is a chartered engineer and fellow of the Institute of

Commenting on his appointment, Skagerlind said: “This is an exciting market with strong growth potential for finance as demand for specialized industrial equipment is rising in both domestic and foreign markets. “I am delighted to be spearheading these market developments with a financier that really understands the industrial sector.”

Materials, Minerals and Mining, previously worked for Rolls-Royce on a joint venture in Nottingham. John Latham, acting vice-chancellor of Coventry University, believes Mr Perrin’s experience in the sector will provide a great benefit to both students and R&D activities. “It will be a different model for developing engineering talent and we are confident that bringing the teaching and research environment on to the factory floor will generate a unique experience for students and fresh thinking for industry,” he said.

To notify The Manufacturer of your company’s appointments, please contact James Pozzi at: j.pozzi@sayonemedia.com or: 0207 401 6033 May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 17


NAKED ENGINEER

Naked engineer

What’s in a name? Our Naked Engineer is renowned for telling it like it is. So why won’t everyone else?

S

tumbled into the office spot on 10.30am. Pretty good considering I had my black retriever, Satan in tow. Another of Sir Patrick’s brilliant ideas for team building - bring your pet to work day. Fell over the dull mutt getting into the office and threw coffee all over the floor in the process – bloody fantastic start to the day. New PC was still not working – I was idly jabbing at the keyboard and scanning the executive jobs page in the FT when Jimmy marched in. Tricky to march properly with legs that short but he gave it a respectable try. “Presume that was Satan” he said, looking distastefully at the carpet while fast losing the battle to fend the animal away from his crotch. “No, it was me,” I said absently-mindedly, continuing to pummel the keyboard to no avail. I caught the

You wouldn’t have the local dog warden calling himself a vet or a St John’s chappie calling himself a doctor, so how come the guy who fixes your boiler is a domestic heating engineer?

Greek’s rather quizzical look as I yelled through the wall to Attila “Get someone from geek control in here. My technology’s broken.” “No-one available until late this afternoon,” Attila reported back a couple of minutes later. “Just can’t recruit the staff,” explained HR harridan, joining us to bemoan the state of the UK education system. “Not enough people going into engineering so not enough engineers coming out. I’ve got over 140 vacancies across flight, offshore production and sensors and I’ve got engineering and ops managers screaming for skills I can’t understand, let alone recruit. Convened an emergency planning session with Jimmy and Janice which coincidentally revolved around a light lunch in Cavendishes. Discussion centred on the woeful UK engineering skills shortage and Gove’s half-arsed reforms for GCSEs. “School-leavers can’t count any better than they can spell so what sodding difference will changing GCSEs from ABC to 123 make?” I asked. “It’s all very well having a STEM agenda but until the government changes this bollocks about having 50% of the population heading off for three years to do media studies we’re buggered.” “Yup” added Jimmy “Who’s going to spend three years of their life going to 100 hours of engineering a week and miss out on all the boozing and womanising when you can do six hours of social studies and drink yourself paralytic the rest of the time? “The institutes ought to get their act together and start insisting only engineers can call themselves engineers” I opined. “You wouldn’t have the local dog warden calling himself a vet or a St John’s chappie calling himself a doctor. So how come the guy who fixes your boiler is a domestic heating engineer?” We headed back to the office, Satan knocking some sizeable pot plants over as he went. Now, normally his shag-fest tendencies are not too much of a problem, but on this occasion he certainly lit up the eyes of the geek who was all fours under the desk trying to fix my new PC. Any similarity of characters to persons living or dead is completely intentional.

18 www.themanufacturer.com | May 2014 | Issue 4| Volume 17


*PRS for Music licences cover the vast majority of music originating from the UK and all over the world. However, if you play music that is outside of PRS for Music’s control, you may need an additional licence from the relevant copyright owner(s). You will require a TV licence as well if you are using a TV in your premises. You do not need a licence from PRS for Music in the unlikely event that all the music you play is out of copyright or is not controlled by PRS for Music. **PPL collects and distributes royalties on behalf of record companies and performers. Further info at ppluk.com. All music licences are required under the Copyright, Designs and Patents Act 1988 which stipulates you must gain the permission of the copyright owner if you play music in public (anywhere outside the home environment).

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May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 19


Letters to the editor

Production lines

Letters to the Editor Guy Walsh Regional Director at ABN AMRO Commercial Finance PLC

As labour costs across China and India continue to rise, manufacturing is gradually returning to the British Isles. In the last two years, global vehicle manufacturers have invested more than £6bn in the UK’s burgeoning automotive sector, now generating around £30bn of annual revenue. Despite this impressive track record, attention must now turn to the growing number of smaller players being left behind, without access to the right information or funding options. Access to funding and financing long-term growth remains a critical business issue for UK automotive companies seeking to invest for growth. Both the government and financial institutions need to understand how crucial the particular needs of small and medium sized businesses are, especially when it comes to issues such as tooling finance. Accustomed to dealing with large PLCs, government officials have struggled to appreciate the increasing pressure on companies to invest heavily in production tools, often not recouping their costs until many months down the production line. Another challenge is presented by the reluctance of banks to lend to suppliers because of the perceived risk involved in an industry where lead times for new products can often be five to seven years or more. Whilst government led initiatives to invest £1bn over the next 10 years promise growth and development of the UK’s manufacturing sector, new models such as crowd funding have emerged to fill the gaps in SMEs finance. Although money raised through crowdfunding doesn’t necessarily buy the lender a share or guarantee a return, microinvestments of this kind reflect belief in the ventures they are financing and understanding of the opportunity for SMEs in the automotive sector to grow their businesses.

Have your say 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 j.gray@sayonemedia.com

20 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

Adam Franklin Managing director, industrial UK at DHL Supply Chain

As an increasing proportion of manufacturing is returning to a company’s domestic market or region, Britain is experiencing something of a manufacturing resurrection. Data from the most recent EEF report, Backing Britain – a manufacturing base for the future highlights that more companies are returning to the UK. It is a slow and steady change but a positive change nonetheless, with one in six companies reshoring production in the past three years. It seems this trend is set to continue, as highlighted by the UK Government’s recent Reshore UK initiative. So, why are companies returning and what are the benefits of manufacturing in the UK? Ultimately, businesses are reshoring to better their products and services through improved quality, efficiencies and margins, with the benefits rippling throughout the UK economy. Customers benefit from better quality products, faster delivery times, while whole regions are benefiting from healthier local economies. As such, we as supply chain businesses have a vital role to play in supporting companies in the reshoring process. By doing so we will help enable agility and efficiency in the UK supply chain, which will fuel the growth of the manufacturing industry in Britain.

Michael Richards Owner of expenses management firm webexpenses

According to a number of industry experts, 2014 is a year of recovery for the UK manufacturing industry. What’s more, speaking at this year’s World Economic Forum in Switzerland, David Cameron has again reinforced the vital role the industry will play in boosting UK economic growth over the coming years. Of course, the prospect of a return to growth is welcome news for industry, which has faced numerous challenges since the recession began. However, as we come into an upturn, the UK’s manufacturing sector needs to be asking – is my business prepared for it? Organisations should not overlook the importance of their IT infrastructure and internal business processes, particularly when it comes to things like financial and project management. By updating and addressing ‘backroom’ processes, manufacturers can help to streamline operations by simplifying and consolidating processes. Investment in business tools for those departments that are not necessarily directly involved in the making processes should be considered just as vital to a manufacturers’ success as investment in machinery and equipment. With growth for the manufacturing sector just around the corner, now is the time to not only consider those larger investments in new production equipment, but to invest in the improvement of those older and more inbuilt internal processes.


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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 April.

Jewel in the Crown

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Crown Paints’ new high speed filling line is a source of pride and productivity finds Jane Gray

n November 2013, after an extensive technology scoping and selection process Crown Paints’ Hull factory received its new high speed filling line complete with automated palletising cell. Since then, crown has been processing short runs of paint on the line, testing it for quirks and faults and settling the ergonomics for production, change overs and maintenance. In late March, the line became fully operational and visited to share in the celebration. Crown was determined from the outset of this investment project to avoid replacing equipment ‘like for like’ simply because it was what it was used to. Instead, as manufacturing director Dave McCombe said “we decided it was the right moment to take a rationalised look at what good really looks like

today – what technology is out there for our sector? How could we really push the envelope to find efficiencies and competitive advantage?” The new line, installed with the help of three key partners, has immediately brought a 25% cost reduction for both electrical energy and compressed air and is estimated to have increased overall efficiency by as much as 75%. A clever piece of automation which unstacks paint containers as they enter the line has probably increased through put by as much as 50% all on its own according to Mr McCombe. Crucially, the new high speed line has also been embraced by employees – despite the fact that its installation has meant some redundancies. “I have been truly humbled by the response of the workforce to this project,” McCombe told me as we reviewed the parallel HR and manufacturing strategies that accompanied the technology investment. FURTHER READING: Read more about the HR perspective on this investment and get more details on the automation benefits it has brought at bit.ly/JewelinCrown

22 www.themanufacturer.com | May 2014 | Issue 4| Volume 17


OUT AND ABOUT

Pumping up production

Marussia looks to gather pace James Pozzi tours Marussia F1’s factory in Banbury.

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arussia F1 is a team proving life can be tough at the top. Despite utilising readily available technology such as CFD tools and ERP to bridge the competitive gap, it remains the smallest team on the grid and its investments are often met with meagre returns. But despite working within relatively modest means, Marussia continues to think big. On a recent visit to its site in the Oxfordshire town of Banbury, I was given an illustration of this. The facility has all the hallmarks of the sophisticated F1 HQ, albeit on a much smaller scale. While the site holds a modelling shop, R&D centre and destructive and non-destructive testing facilities, around 95% of Marussia’s car comes from sub-contractors. Most notably Ferrari supplies its engines, while essentials such as wind tunnel testing are carried out at McLaren’s Woking site. Marussia has been heavily impacted by the 2014 F1 regulation changes which have necessitated rapid development of expertise in manipulating composite materials. Composites now account for 60% of its car and the R&D has spent long hours refining high precision parts such as its wishbone suspension. Despite the challenges, the lure of the sport and Marussia’s evidently close knit team ensures it manages to attract skills, with the team expanding from 70-200 employees in just three years. Last year saw the team finish tenth – it’s best ever standing – and sees them going into the new era of Formula 1 focused on increasing car reliability. Kevin Lee, operations manager at the site, believes being based in Motorsport Valley aids the team’s competitive aspirations. “The biggest advantage of being based here is the access to the skilled workforce, and also the wide range of subcontractors around the region,” he said. “That support infrastructure basically allows us to race.” FURTHER READING: Read more about James Pozzi’s visit to Marussia at bit.ly/1iSf49l

There’s a lot to celebrate for Havant-based pump manufacturer Eaton Hydraulics as it prepares for a reshoring extravaganza. Victoria Fitzgerald finds out more.

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ot only has Eaton just announced the launch of its new X20 line of pumps, it is also boasting about the subsequent creation of 100 UK jobs. But that’s not all. It’s also mid-way through localising its assembly and test programme to support the new product line - a project which will include the reshoring of machining operations from China and assembly jobs from Mexico. The £2m investment will enable the company to match and beat the delivery times offered by its competitors, even with its new, more advanced product range. The X20 series will be pushed out to customers in Europe, the Middle East and Africa. Mark Foreman, plant manager at Havant, said at the product that he was expecting to see an upsurge in demand for open circuit piston pumps in the next few years as the manufacturers of original equipment increase production to meet their orders. “Normally, this would mean that lead times would increase for products such as the X20 pump,” he said. “But this investment in the Havant plant means we can actually reduce lead times to approximately half that which is industry standard now.” The delivery time of the products is only half of Eaton’s reason to celebrate, the launch is a culmination of the continuing success story of the organisation. Previously only manufactured in the US, the introduction of the X20 series marks the beginning of a five-year growth strategy for the UK branch of the multinational, which includes plans to gain clients such as GG Motors and Ultronics by March 2015, as well as the introduction of more new products. With its headquarters in Dublin, Eaton has key locations in Cleveland, Ohio, Shanghai, China and Brazil. The firm has customers in more than 175 countries and employs roughly 102,000 people worldwide. May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 23


Best of Troubled times at Toyota http://www.themanufacturer.com

T

he Manufacturer last month released its Annual Manufacturing Report to the peaked interest of readers. The Annual Manufacturing Report 2014 surveyed 182 UK manufacturers in Q4 2013 across five key areas: Economy, policy and risk; Finance; Automation; Skills; and ICT. You can download the report at bit.ly/PpU3uJ. Now let’s take a look at other popular content from April.

Our your tweets favo , Som e urite o twee f the mos ts fro s t‘ m@ The retwee

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Maybe it’s because so many people in the world own one? Whatever the reason, Toyota’s latest round of recalls had readers interested.

T

here’s no denying automotive manufacturing giant, Toyota has had a few tough years. While the Japanese company’s sales remain on the up, quality control seems to have slipped, with another UK recall being issued last month. The company is to recall more than 35,000 UK cars as part of a product recall of over 6.4m vehicles worldwide. The three separate issues which prompted the recall affect some RAV4, Hilux, Yaris and Urban Cruiser models, and have resulted in 35,124 UKregistered vehicles being recalled by the Japanese manufacturer. In some RAV4 and Hilux models, Toyota said there was a risk the driver’s airbag may be deactivated because turning the steering wheel could damage certain circuits, causing the airbag warning light on the instrument panel to illuminate. This fault makes up the largest share of the recall, accounting for 24,785 models manufactured between June 2004 and December 2010. Just over 10,000 Toyota Yaris and Urban Cruiser models built between January 2005 and August 2010 are affected by a spring mechanism locking the driver door. In February, Toyota recalled nearly 31,000 UK-registered cars because of a computer problem that could cause the vehicle to stop, part of a £1.9m worldwide Prius model recall. After receiving 400 reports of problems in North America and Japan, the world’s biggest car manufacturer also confirmed the recall of UK models manufactured between March 2009 and February 2014. Read more about Toyota’s quality woes at bit.ly/1gyz404

24 www.themanufacturer.com | May 2014 | Issue 4 | Volume 17


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

Anyone for a job? It seemed as though there was a constant feed of job-related stories keeping readers coming back in April.

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et’s get the bad news over and done with first. The news that up to 500 jobs at Honda’s Swindon plant were under threat due to production cuts was one of ’s most read stories in April. Workers at the factory were informed that car plant two would close with the loss of 340 permanent jobs. An additional 160 temporary positions were also cut at Honda, not to mention another 135 at its distribution subsidiary. (bit.ly/RHTIWc). Honda’s news formed a stark contrast to that of fellow car maker Nissan and its supply chain. A contract to supply window regulators for the new Nissan Qashqai is to create 300 jobs at Coventry automotive supplier Brose UK (bit.ly/1nlycDl). The German family-owned specialist mechatronic systems and electric motors has set up an additional 7000 sq metre facility in the city to meet demand from Nissan and other customers including Jaguar Land Rover and Toyota. However the job news was not limited solely to the automotive sector. GE Oil & Gas is to invest £15m in Newcastle, leading to the addition of two massive manufacturing and storage carousels which will increase capability for deep water pipeline manufacture at GE’s site on the River Tyne (bit.ly/1iTO7lt). The investment has increased the site’s capacity and capabilities and will create more than 152 new jobs, the company says. GE’s announcement followed hot on the heels of another energy sector job boost - this time in the renewables segment. In later March Siemens said it will invest £310m ii two wind turbine manufacturing facilities, creating 1,000 new jobs in the UK as a result (bit.ly/1hke4K2). Siemens two site are in Green Port, Hull and Paull in the east of Yorkshire.

Best of Online

Adding to aerospace

I

From toys to houses and prosthetics; not a day goes by without a headline about new applications for 3D printing.

n April, Oxford-based medical technology start-up OxSyBio received £1m of funding from innovation investment providers IP Group to help advance its work printing organ tissue for human transplant operations. Innovations in this area have caused a stir in the last year or so - though skeptics say its hard to justify large scale funding of the type that would bring 3D printed transplant tissue into the mainstream. But then many said the same about the use of 3D printing in the aerospace sector - and now big companies like Pratt and Whitney are finding their operations transformed by the ability to make light-weight parts with unique structural qualities. Last month, Tim Brown wrote for about about Pratt & Whitney’s groundbreaking use of 3D printed parts in a working engine. The PurePower PW1500G, contained 24, from simple brackets to more complex central engine components designed to withstand high

temperatures. The PurePower engine powered a Bombardier CSeries plane successfully through its test flight last year and is scheduled to enter into service in 2015. The concept of additive manufacturing, which in this case involves using lasers to fix layers of powdered metal into a digital mould, has been around for 30 years under various guises. Stereolithography, where layers of material are cured by a UV light, was first commercialised in the US during the late 1980s. During the 1990s other 3D printing methods, such as laser sintering and materials deposition, were developed as rapid prototyping became commonplace. Then in the early 2000s, when engineers began to realise that the technologies being developed could be applied to manufacturing, the term additive layer manufacturing (ALM) was coined. Read more about 3D printing and ’s upcoming conference on the topic at bit.ly/1fjtn5G

Who and what is influencing #UKmfg in April’s Twittersphere

Data captured on April 23 May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 25


Everyday industry evolved

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he Ford F-150 range has three cab styles and 16 main features, from trim to transmission, and each feature has several options. This makes 653,687,735,500,800 possible combinations – for one car. Ford sold 763,402 F-Series pickups in 2013. The F-150 is the embodiment of mass customisation. To deliver this level of variation in a mass production environment, products will need to find their way independently through the production process, with

Germany’s automation industry and its government… say that fully integrated cyber physical systems will not be applied in practice for another 15-20 years

26 www.themanufacturer.com |May 2014 | Issue 4| Volume 17

In the years ahead, your smart device will be able to operate your factory or office, calculating and monitoring stock levels and energy consumption. Everything will talk to everything else, where the end game is efficient mass customisation. Will Stirling reports.

machines and products communicating and cooperatively driving production. This is the vision of Industry 4.0, aka the Fourth Industrial Revolution, a fully interconnected world run by cyber physical systems that tell each other, and their human custodians, what to make and when. In intelligent or “smart” factories, everything is interconnected wirelessly - ERP systems talk to manufacturing execution systems and process control systems seamlessly. Multiple order variants are conveyed automatically to automated production lines. Removing labour from production is a driver, but the main force behind this revolution is mass customisation, so that manufacturers of consumer goods can offer a greater degree of personalisation in their products without compromising on the efficiencies of mass production. Industry 4.0 and the Factory of the Future were the key themes of this year’s Hannover Messe, the world’s biggest trade fair for industrial automation. Some exhibitors, such as Bridging IT and WIBU Systems, are developing software and applications to bridge production planning with automated production, plus the necessary security features companies will need. WIBU

Systems for example, showcased its CodeMeter encryption and licensing tool that protects manufacturers’ software against cyber-attack and reverse engineering.

Everyday industry

Siemens has shown how Industry 4.0 could work for everyday commodities like the drinks industry*. Each bottle on a line contains an RFID chip containing a precise description for which liquid needs pouring, the lid and label style. At each station the bottle communicates directly with the machine, telling it how it has to be processed. At the line end, a sensor and computer checks if the bottle has been produced as programmed. Industry 4.0 will also facilitate the movement to local manufacturing at smaller sites close to the end market. Till Schreier from robot company IBG, at the Hannover Messe, says: “Today all cars are made the same way; components are shipped to one site, cars are assembled and then transported around the world. Our [Industry 4.0] concept will enable decentralised local manufacturing.” IBG’s Messe exhibit shows a small robotised cell automatically assembling a battery powered kit car. Embedded communication is already applied in factories, but in the future, all devices, machines and even materials will be connected together using sensors


Industry 4.0

HOT TOPIC

From Industry 1.0 to Industry 4.0

First Industrial Revolution

Based on the introduction of mechanical production equipment driven by water and steam power

Second Industrial Revolution

1800

and communications technology, known as cyber physical systems. This will not only improve productivity – Siemens expects productivity to be up 50% on today – but reduce product defects significantly. The vision is to have once autocratic operating systems communicating with each other, optimising each other and total production. Professor Detlef Zuehlke of the DFKI in Kaiserslauten, a leader in Industry 4.0, says the vision is to integrate industry with the Internet of Things. “We will take the internet down to the lowest level, so that every sensor and actuator can participate with the Internet of Things, providing data of its status and location. Each device has its own IP address so it can be addressed by this [global] network.” This links with the “smart cities” concept. Practically it means, for

We will take the internet down to the lowest level, so that every sensor and actuator can participate with the Internet of Things, providing data of its status and location Professor Detlef Zuehlke, DFKI

Fourth Industrial Revolution

Based on the use of electronics and IT to further automate production

Based on mass production achieved by division of labor concept and the use of electrical energy

First mechanical loom, 1784

Source: Siemens

Third Industrial Revolution

First conveyor belt, Cincinnati slaughterhouse 1870

Degree of complexity

Based on the use of cyber-physical systems

First programmable logic controller (PLC) Modicon 084, 1969

1900 example, better visibility of products that are about to become redundant, or fail. One of the natural consequences of this phenomenon is greater investment in capital equipment, IT and electronics. This will be good for those manufacturers (of which Germany, the chief exponent of Industry 4.0, has many) who make these machines, but is it good for the environment?

2000

Today

peak times, says Kurt Bettenhausen, a research director at Princeton. Germany’s automation industry and its government, both leading Industry 4.0 via its High-Tech Strategy 2020, say that fully integrated cyber physical systems will not be applied in practice for another 15-20 years. However, British companies need to wake up to Industry 4.0 when investing in future capex, lest

Smart and sustainable industry

The consensus is that while the increase in use of industrial automation equipment will drive up carbon emissions, this will be more than offset by the more intelligent methods deployed in making products that will produce lower volumes of redundant items when tastes change, and more local manufacturing will save fuel. Maintenance, too, is built into Industry 4.0. At Princeton University, researchers are interfacing office building automation with utility price information, optimising programmable logic controllers with simulation to calculate how much to precool a building, with the ultimate goal of turning off the cooling system during

today’s investments are very quickly retired by super-efficient production in countries that fully implement Industry 4.0. *Siemens’ video on Industry 4.0 can be seen here: http://www.youtube.com/ watch?v=HPRURtORnis May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 27


sectorfocus 2014

Building to succeed The UK’s biggest machine tool manufacturing exhibition took place in Birmingham in April, playing host to over 500 exhibitors. But does the growth of the sector’s flagship show illustrate a wider upturn in the industry’s fortunes?

The world’s first additive manufactured metal bike frame at Renishaw’s stand, made in collaboration with Empire Cycles

The sector employs

9,500 people across both manufacturing and distribution

28 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

saw the biennial MACH exhibition embark on its second century in style. As one of the world’s oldest manufacturing technology showcases, the event serves as an indicator of the health of not just the machine tool industry, but also the wider manufacturing technologies sector. Despite some alarming figures around export and growth in recent years, 2014 highlights a step change in industry outlook. With over 500 exhibitors converging on Birmingham’s NEC and over 22,000 visitors over five days, attendance was up across the board and the audience was eager to see the eclectic offerings of UK industry; from innovations in drilling tools and saw blades to advanced technologies such as 3D printing and additive manufacturing. The rise in attendees reflects renewed optimism in UK manufacturing and the investment intentions of companies in a spread of sectors. Meanwhile, the uptick in exhibitors shows the machine tool sector is enthusiastic about the chance to move on from some difficult years and aware of the need to emphasize brand presence as first time buyers are exploring the market and long dormant investors are waking up to the need to refresh their technology. Employing just shy of 10,000 people nationally with heavy concentrations in the Midlands and West Yorkshire regions, the recession gave the UK machine tools sector a major knock. When investment dried up and large OEM companies took a step back, the environment became parched for SMEs in the supply chain. In 2009, even Renishaw, the renowned UK plc and one of the largest exhibitors at MACH, said a large proportion of its workforce was “at risk” of job losses. Other big hitters such as Yamazaki Mazak (p32) also struggled during the downturn which resulted in job cuts at its Worcestershire site. But this dark outlook has lightened. Last year Renishaw announced record revenues of £346.9m, reflecting growth in the UK market and beyond. Meanwhile, Mazak says the European outlook is stabilising – with renewed


Machine tools

Exports of machine tools in 2013 were 2.4% lower than in 2012. Deliveries to the European Union fell by 4.6% and accounted for 43% of total exports

100% Total Exports 43% Exports to European Union

SECTOR FOCUS

The start of an investment wave? The opportunities brought by a growing economy have spawned a culture of investment across UK industry in 2014 and this was highly evident at MACH. An SME survey conducted by Lloyds Bank Commercial Banking at the event showed 73% of participants are planning to invest in new plant and machinery in the next 12 months. Intriguingly, 64% don’t feel the contentious issue of access to finance will hamper these intentions. Continuing the export trend, nearly three quarters (73%) are in-tending to look overseas for new growth opportunities in 2014, whilst 27% of those surveyed are intending to reshore their operations back to the UK over the next year. Richard Holden, head of manufacturing at Lloyds Bank Commercial Banking, says: “Hearing that manufacturers are set to drive forward plans to invest in new machinery and are creating a number of new job opportunities is not only a boost for the economy, but a significant sign of progress in an industry that was hit hard during the downturn. The survey also found 90% of manufacturers will have new job opportunities avail-able in their business over the next six months, and Mr Holden says Lloyds is committed to help fill these jobs by its investment in initiatives such as the Advanced Manufacturing Training Centre (AMTC).

orders from crisis-stricken Italy, traditionally the second biggest machine tools market in Europe after Germany, being particularly welcome.

Reversing the slide

Graham Dewhurst, director general of the Manufacturing Technologies Association (MTA), which owns and runs MACH, says the 2014 event is a tangible demonstration of the upward trajectory which the UK’s machine tool industry finds itself heading. “There is a buzz around UK manufacturing that we haven’t felt for a long time,” he comments. Official MTA figures confirm attendance rose by 10% for this year compared to 2012. “It’s telling that of our 500-plus exhibitors, 150 were not at MACH 2012,” he added. “Some of that is due to established industry names, who took a break from exhibiting after the recession, realising that the opportunities are too good to miss; but the number of companies taking places in the NEC halls for the first time in order to show the market what they have to offer is really encouraging.” Technology exhibitors and investment-curious visitors at MACH were both aided in making the most of the show by the return of OEM giants Airbus and Rolls-Royce, which took major pavilion space.

“The findings show that there is a considerable demand for new apprentices to overcome the projected shortage of engineers in the manufacturing industry, and this is why Lloyds Bank recently launched a £1 million-a-year sponsorship of the Advanced Manufacturing Training Centre at the Manufacturing Technology Centre in Coventry to develop more than 1,000 engineering apprentices and trainees to help close the skills gap,” he says.

MACH 2014 showcased the latest innovations and designs from the world of manufacturing technologies

May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 29


sectorfocus The number of companies taking places in the NEC halls for the first time in order to show the market what they have to offer is really encouraging Graham Dewhurst Director General, Manufacturing Technologies Association

products in the UK which has been brilliant for firms like us.”

Skills pay the bills Richard Noble OBE opens MACH 2014

Business secretary Vince Cable tours the exhibition with MTA president Richard Dewhurst

The presence of these industry goliaths has become a real boon to the past couple of shows, allowing supply chain companies to rub shoulders with their key customers and talk about the kinds of capability that will lend competitive advantage. The UK’s booming aerospace and automotive sectors have been major drivers behind the recovery of the UK

30 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

machine tools industry. Dave Cawkwell, sales manager at Berkshire-based SME SGS Tools tells : “We’ve focused on the aerospace industry because of its sheer mass, but we’ve recently seen a lot of subcontract work emerging from the automotive sector, due to the success of the likes of Jaguar Land Rover,” he said. “Companies like JLR have focused on making all their

Although business opportunities are on the increase, the spectre of the skills gap is particularly troublesome for the machine tools sector. One exhibitor described the lack of skills in the sector as “crippling.” Creations on display at MACH such as the Bloodhound SSC and a McLaren Formula 1 car are all impressive engineering feats, but if they fail to capture the imagination of youngsters then such innovations will become stunted and fade from the UK industrial landscape. As in many other industry sectors, manufacturing technology vendors say they can see the average age of their workforce rising year on year – but feel almost powerless to reverse the trend. Bruderer, which has UK facilities in Birmingham and Luton, provides a good example. Its UK managing director Adrian Haller (p32) says that the average age of his workforce is now 59, a fact that makes recruiting young talent more problematic than it already was. “I’m struggling to get new skilled people to replace existing staff coming to the end of their careers,” he confesses. “Furthermore, some of the big manufacturers can pay 16-17 year olds £250 per week straight out of school, and getting the money to compete with the large firms is nigh on impossible.” Mr Haller continues: “Everybody you talk to in the industry will tell you how hard it is to acquire skills. A lot of work needs to be done to show young people that in order to get the computer in front of you and the iPhone in your hand, someone has to manufacture it.”


Machine tools

SECTOR FOCUS

Home and away

The conclusion of MACH saw business secretary Vince Cable announce plans to increase reshoring of UK manufacturing by providing £100m to help companies strengthen domestic supply chains and create or safeguard thousands of jobs. The move was met with approval from manufacturers, who feel investment is critical to make the UK a strong centre for making goods to export abroad. Exports of machine tools in 2013 were 2.4% lower than in 2012, with deliveries to the European Union falling by 4.6% and accounting for 43% of the total. China is the biggest single country export destination for machine tools accounting for 16% of all UK exports for the sector. It is followed by a resurgent USA, which occupied second place as an export destination for the first time since 2009. And as the UK starts to seek further flung export markets than Europe, so the wider world is waking up to MACH itself. The Midlands Assembly Network (MAN), a collaborative consortium of 10 regional manufacturers, identified this rise in foreign presence at the show. “There was a significant increase in the number of people attending MACH and the atmosphere seemed very positive, especially from international delegates keen to explore the opportunity of UK manufacturing,” says MAN business development manager, Steve Gaston. “MAN received enquiries for nearly all of our member companies and there was a lot of appetite for finding solutions to complex casting, tooling, electronics, machine building and plastic injection issues.” While even the biggest of cynics would find it difficult to argue the fortunes of UK manufacturing haven’t improved in recent times, there remains much to do.

16%

China is the largest export location for UK machine tool goods, accounting for 16%

The number of visitors at this year’s event surpassed 2012’s 22,000 for the week

The UK must do more to leverage its international reputation as a good place to do business in order to attract foreign investment and optimise the international opportunities for firms already based here. Sentiment at MACH indicates that industry still feels the need for assurance that government backing for skills and training, as well as pressure on finance providers to support smaller firms, will be maintained in the long term. That said, there was a palpable feeling of positivity at the show which built on the recent manufacturing friendly Budget and other evidence of commitment to making the UK a competitive manufacturing environment. At MACH 2014 UK manufacturing took another big step in the right direction. May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 31


INTERVIEW this?’ but focus on fixing the problem. I need to act in a way that reassures everyone that they have the freedom to do their best for a customer without fear that I will question how much it has cost us.” However, sending out these signals is a relatively easy task at Mazak, assures Smith. “That culture comes right from the top – from the Yamazaki family, which still wholly owns the company,” he explains.

When I came to Mazak it was like stepping into a text book description of the future of manufacturing

A Mazak man “P

From shop floor to director’s chair, Richard Smith explains why his experiences with Yamazaki Mazak have made him loyal for life to one of the best known names in the machine tool industry.

32 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

eople can copy your machines but they can’t copy your culture,” says Richard Smith, managing director UK and Ireland sales at Yamazaki Mazak. We’ve just finished a tour of Mazak’s 14,000sq ft European Group HQ in Worcester where machines make machines that make machines at the rate of around 100 per month. “If you can create a culture of caring for the customer – from my position down to service engineers and the people answering telephones at reception – if you can do that, then your position in the market is secure,” continues Mr Smith as I quiz him on his approach to successful sales. But what does that really mean from a leadership point of view? How do his actions instil that culture? “It’s about the things you say and the things you don’t allow to be said,” Smith responds. “It’s also about how you react when a customer has a difficult situation. Don’t immediately ask ‘who’s going to pay for

Smith has come to know the values of that family inside and out over almost 30 years, and the experience has left him with a strong sense of loyalty to the firm. “I have no desire to leave Mazak,” he says when I ask about his ambitions. “It’s a great company with a great culture. It has great ambitions in its own right. I have been lucky to be challenged and satisfied by every job I have had here and I’m sure there is more of that to come.” But this fulfilling career is based on something of a fluke, Smith admits as he recalls how he ditched a job at car manufacturer Ford for a last minute offer from Mazak back in 1987. “I’ve never done anything like it before or since,” says an abashed MD, “but I simply didn’t turn up at Ford on the Monday and had to write a letter of apology to explain that I had been called by Mazak at the weekend.” Why was the Mazak offer worth the breach of manners? “I’d just taken my MBA and during my course our lecturers had waxed lyrical about how, one day, we would see factories working with automated systems and just in time production, functioning smoothly 24 hours a day. When I came to Mazak it was like stepping into a text book description of the future of manufacturing.” Smith joined as a graduate production engineer before hopping into management roles in the sheet metal and assembly departments


Richard Smith, MD UK & Ireland Sales, Yamazaki Mazak

INTERVIEW

Highs and lows Richard Smith’s best and worst career moments Worst: Back in the 90s when I was responsible for procurement, I was forced to offshore the sourcing of around two thirds of our castings – which we used to buy only from the UK. Now we buy about a third from mainland Europe and a third from China.

Over 500 staff are employed at Yamazaki Mazak’s Worcester facility

and then into procurement. In 2010 he was instrumental in establishing Mazak’s product group which now lends invaluable structure to product development and lifecycle management processes across the globe. It was an initiative led by the current European MD Marcus Burton. In 2012 Smith found himself in a direct sales role for the first time as he took on responsibility for the UK and Irish markets. But although it’s been a while since he called the shop floor home, Smith says his grounding in production taught him some essential lessons about doing business. “One of the first things I learned on the factory floor is that you can’t do

Over 25,000 machine tools have been made at Mazak’s Worcester site since it opened in 1987

everything yourself,” he comments. “Success comes from surrounding yourself with people who are, or can become, experts in their field. If you understand that they are doing something valuable that you cannot do, then you can work with mutual respect and effectiveness. That is true across the organisation.” Almost two years into his sales role, Smith also says that he has found his feet and enthusiasm for the position by drawing parallels with production. “I like sales because it is fast moving – it’s far more like production than many other roles I have done in between because you are dealing with the here and now, looking for your next immediate target

It was frustrating because the Group was giving me information to say that we could buy these castings at almost half the price that we were paying for them locally, but I wanted to stick with our UK suppliers and tried hard to work with them – to find ways of reducing costs. But they were arrogant. They told us to go to China and see how much we had to send back. Unfortunately for them our Chinese suppliers were excellent. It was a disappointing moment for me. Best: The best moments are when you lead a group of people who really come together to achieve something outstanding. There have been many instances of this but one which really struck me was the first time we made 150 machines in a month at this plant. We went out and bought everybody in production a bottle of champagne. There was a great atmosphere here – we all really felt a part of something. That’s important.

May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 33


Richard Smith, MD UK & Ireland Sales, Yamazaki Mazak

and doing what you can to help people. I enjoy that.”

Times, they are a changing

Having been with Mazak almost from its first days in the UK, Smith has seen the Worcester site double in size and stuck with it through good and bad times. The most recent recession saw an 80% dip in sales for the European region, but Smith says this bounced back fairly quickly – with the UK leading the way. “The UK market regained its prerecession levels a couple of years back and, after some uncertain times, Europe is showing signs of more stable recovery. Germany is our biggest market within Europe and Italy recently regained

BIOGRAPHY Richard Smith Managing Director UK & Ireland

its position as our second biggest – knocking the UK off that spot.” As the European market stabilises, Smith says he is confident that the UK segment will continue to grow – an assurance which is backed by a recent uptick in sales coming from new business. Around 25% of sales in UK & Ireland are now to companies that have never bought from Mazak before. Furthermore, Smith and a big Mazak team had barely returned from a highly successful stint at the manufacturing technologies exhibition MACH at time of writing. “We like to think we were the busiest stand,” says Smith. “But I suppose everyone feels like that. All I know is there were a lot of people with a real intention to buy.” And what are the latest advances in machine tools technology, at Mazak and more broadly, which will help deliver value to these new and returning customers? “I think the developments in intelligent machining represent a third significant evolutionary step for the industry,” says Smith – the first two being the invention of the control system, a Mazak innovation, and the advent of flexible machine tools which can carry out multiple tasks. “The ability of machines to monitor themselves, diagnose something as it goes wrong and to alter

Coventry University 1983-7: BEng (Hons), Manufacturing engineering Warwick University 2000-2005: MBA 1987:

Joins Yamazaki Mazak as graduate production engineer

1990:

Appointed assistant machining manager

1992:

Sheet metal fabrication manager

1994:

Assembly manager

1997:

Purchasing manager

2002:

General production manager

2005:

Product director

2007:

Customer satisfaction manager

2010:

European Group Product Director

2012:

Managing Director UK & Ireland Sales Division

Richard lives in Worcester with his wife and two sons, enjoys playing badminton and is a keen Leicester City FC supporter.

34 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

INTERVIEW

85% of machine tools made in Worcester are exported to Europe

their own operations to become more efficient or more productive – that technology is swiftly becoming commonplace, more advanced and more reliable.” Other areas where Mazak is exploring how it could add more value are in the machining of composites and 3D printing, Smith says. “The rise of additive manufacturing is something that no one can ignore and we will be exploring how this technology will exist alongside metal cutting technologies in the future.” Keeping up with customer desires to machine different materials, and integrate with new technologies and processes which may be added to different area of their facilities is essential to Mazak. The company prides itself on its extensive portfolio and its ability to stick with a customer from its first machine tool investment through growth and, potentially, international expansion. “It’s what really sets us apart,” Smith says emphatically. “We make an incredibly broad range of machines including vertical machining centres, lathes and 5 axis CNCs of all sizes. “About two thirds of our sales are to companies of less than 50 employees, but because our product portfolio is global, we can ensure that as a customer grows in size and ambition, it can rely on the same quality and range of technology and service anywhere around the globe.”


6Osecond Adrian Haller, Managing Director, Bruderer UK

Adrian Haller

Managing Director, Bruderer UK Adrian Haller, managing director of machine tool firm Bruderer UK, talks to about its recent exhibition at MACH 2014 and the challenges facing the sector. : Your company showcased at this year’s MACH exhibition in Birmingham. What did Bruderer get out of the week? I was very pleasantly surprised I must say. Monday was quiet but Tuesday, Wednesday and Thursday were fantastic, giving us massive exposure. From our point of view, loads of existing customers came to see us and brand new ones as well, which made it a very pleasurable experience compared to previous ones. Primarily, a lot of the visitors were UK-based, which is what we were intent on focusing on. Although we’re a multi-national company, we really wanted to push the UK economy and show there is still manufacturing

Organisations like the EEF are there to support you, but getting the young people who are educated enough to work within our industry is very difficult

happening here using our machines and the wider industry in general. : MACH 2014 saw an increase in both visitors and exhibitors compared to previous years. Do you feel this signifies a more positive attitude from UK manufacturers? The buzz is definitely there. There’s no two ways about it - things are a lot better. A lot of people have been lobbying for manufacturing in the UK, and I think the world now sees it is a country where it can put reliable business, quality and technology. But building on this, we need to look at skills. Progress starts from the ground up, and there needs to be continued promotion of the benefits of manufacturing careers to the youth of today. Also, there needs to be proof that the government has made the UK attainable for the rest of the world and that we are a growth industry which can put its minds to things and get them to work. There also needs to be further support with investment. This is starting to happen, but it’s still very difficult for companies like ourselves and the customers we sell to, to gain cash to help with investments and

interview

make themselves market leaders across the world. It’s no secret that the majority of successful companies in the UK are family-owned, as the money is in-house. : The machine tools sector is an industry that has particular difficulty in attracting young, skilled workers. What is Bruderer’s experience of this? It’s been very problematic for us. Organisations like the EEF are there to support you, but getting the young people who are educated enough to work within our industry is very difficult. This is because they can’t always see the appeal of manufacturing. Even though our machines are linked to things like high performance cars, jewellery and coke cans, they don’t see that from the front. A lot of work needs to be done in showing young people that in order to get the computer that’s in front of you or the iPhone in your hand it has to be manufactured and is done so by machines. And to be part of that upscale through the industries is a good thing. We also need better structures within universities and colleges focused on engineering. I’m struggling to get people in to replace my guys, with the current age of my workforce 59 years old. There are initiatives out there and they are trying to do something about it, but we can’t just eradicate three generations of doing nothing. : How is Bruderer planning on capitalising on the changing attitudes of the industry? We’re leaving our Luton site and moving the company up to the Midlands, where we already have another operation in Birmingham. The reasons for this are threefold. Firstly, it’s to get a new building. Secondly, as ninety per cent of our workforce are already Midlands based. Thirdly, owing to the region being home to the roots of engineering going back to the industrial revolution, I’m hopeful it will provide me with an infrastructure that will be able to support the company moving forward. We’ve been in Luton for 35 years and where we’re based is terrible for damage. We’re very excited about the new unit and it’ll be a full operational competence centre for the whole Bruderer system, allowing us to export all over the world. May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 35


E20001-F460-M101-X-7600

siemens.com/tia

Efficient automation starts Totally Integrated Automation: Efficiency Efficient engineering is the first step for making things right: faster, more flexible, and more intelligent. Totally Integrated Automation saves time in engineering as a result of the efficient interoperability of all components. The result: lower costs, faster time-to-market and greater flexibility.

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Telephone: UK: 08458 507600 IRE: 1890 507600 E-mail us: Sales.gbi.industry@siemens.com (Product Sales, Quotes, Order & Delivery) Service.gbi.industry@siemens.com (Technical Support, Spares & Service Engineers) Website: www.siemens.com/industry

Answers for industry.


When ’s Callum Bentley recently visited New Holland Agriculture’s tractor production facility in Basildon, Essex ahead of its 50 year anniversary, he discovered something far more impressive than a rich and productive history – a factory all UK manufacturers can and should be proud of.

T

here’s something refreshing about walking through the front doors of the New Holland Agriculture plant in Basildon. It’s not the trophies mounted in a glass display cabinet – many factories show their silverware proudly in their entrance. It’s not the fact that the entrance is clean and white, resembling more of a hotel lobby than the entrance to a factory that moves about 100 tractors off its production line each day. What is so refreshing about the awardwinning Essex plant is the fact that as soon as you walk through the two

38 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

glass sliding doors, there are two more directly in front of you opening up and exposing the shop floor behind. Unlike many factories I have seen, there is absolutely no intention to hide what happens along the production line of this world class factory. While not pointed out verbatim by plant manager Colin Larkin, it seems to me that this design is a symbol of how things operate around here – transparently and completely open to input. The reason for my visit to Basildon, Essex to visit Mr Larkin and his team at CNH Industrial’s New Holland

Agriculture plant was to see how they were going about celebrating the plant’s 50th year of uninterrupted production, a milestone Larkin assured me was being celebrated by everyone who was or had been involved at the plant throughout its influential history. “We had a group of former employees come through the other week for our pensioner’s day – an event we were hosting as part of the anniversary celebrations,” Larkin said as he took me through the spotless glass doors onto the shop floor, the lack of noise from what is a major industrial operation


The pride of Essex

New Holland Agriculture

of production is exported to more than 120 countries around the world

shocking me as much as any industrial machine noise could. “A lot of them were absolutely shocked at what they saw. It’s a totally different plant compared to what it was when it opened in 64 as a Ford tractor factory.” I can relate to their sentiments. The 40 hectare operation is not what I expected from a factory that employs almost 1000 people, 600 of whom are involved in manufacturing alone. It’s impeccably clean, vast and incredibly quiet apart from the sound of a single radio playing, a feat which Larkin tells me is high on his agenda. “It’s not quite there yet, but we are aiming to turn this into a silent factory,” he says.

World Class Manufacturing

I see a forklift truck go by with nothing on it returning somewhere and I automatically think waste Colin Larkin

Part of turning the UK’s largest volume tractor manufacturing plant silent involves removing large parts of the plant’s automated process and eliminating all forklift trucks, instead having workers moving parts with the assistance of pulley systems and parts trains, of which the carriages are built on site to fit seamlessly into the production and parts supply process. The move, which aims to improve productivity and health and safety measures, is one part of the company’s grander World Class Manufacturing (WCM) plan. To seek and destroy losses, CNH Industrial uses World Class Manufacturing, a production system based on 10-pillars devised in the 1990s and adopted by a group of seven global companies. Some, like Saint-Gobain, have departed WCM while others, such as Royal Mail, have joined. World Class Manufacturing is a structured system uniting some of the most effective known methodologies in manufacturing best practice. These May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 39


The pride of Essex

New Holland Agriculture

An average of 100 tractors are produced at the Basildon plant each day

Like for like processes, you know they are cutting corners in certain ways, and one of those ways is safety. I’d like to see some European standards implemented in a like-for-like consistent standard across the board in different countries Colin Larkin

40 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

include Total Quality Control, Total Productive Maintenance, Total Industrial Engineering, Just in Time, etc, which are geared towards raising the entire logistics and manufacturing cycle of plants to levels of excellence. CNH Industrial has some 56 plants worldwide using the WCM system, covering the Case IH, New Holland Agriculture, Case, New Holland Construction, Iveco Commercial Vehicles and FPT Industrial brands. Fiat adopted WCM in 2006 and CNH in 2008. Larkin is a self-confessed champion for WCM and his impact and guidance is gradually filtering throughout the entire New Holland Agriculture plant in Basildon. “It’s all about trying to understand what my areas of confidence are today and trying to figure out how I can improve them going forward,” Larkin said. “We have a pillar inside WCM called People Development, which is one of my weaker pillars. I’ve spent the better part of the past six months trying to better understand that pillar and how to truly first develop the competence, then the knowledge and then the skills while bringing the team along with me at the same time. I’ve put a lot of focus on that and it is beginning to filter down to the shop floor.” Larkin is not backwards in explaining that the process of implementing WCM throughout the plant was not taken up overnight. In fact, it seems counterproductive to think the process will be ever truly


PARTNER EVERYWHERE

G S I

M O D U L E

C E N T E R

GSI Module Center, our new plant concept, aims to meet today’s challenging customer needs, and offers a top quality service, logistically efficient and low-cost.

GLOBAL - OUR VISION To increase production capacity establishing plants close to the most important customers: this is our vision, based on the key concept “think global, be local”. To be a global supplier, offering turnkey products and granting a global service.

SYSTEM - OUR PRODUCTS To supply turnkey assembled systems, increasing the product added value, going way further the manufacturing and sale of components moulded in composite materials. INTERNATIONAL - OUR MISSION To operate worldwide

art work: www.genuine.it

as a global supplier able to exceed customer expectations delivering top quality products and services, on time and on budget, gathering advanced technologies, devoted people and excellence in everything we do on an international basis.

Global System International S.p.A. via Enrico Fermi, 57 - 24020 Scanzorosciate (BG) - Italy phone: +39 035 655524 - 667219 - 668143 fax: +39 035 667159 - e-mail: info@gsigroup.net

www.gsigroup.net


GKN Land Systems

50 YEARS OF CNH

“A tractor can’t roll off the line without wheels!”

The relationship between CNH in Basildon and GKN Land Systems in Telford is one built on history and heritage. Two global organisations with longstanding ties in the UK. At the heart of this relationship lies Colin Larkin, Plant Manager for CNH Basildon and John Burton, Customer Accounts Manager for GKN in Telford.

“I

really don’t know how long John’s been working with CNH but more than 20 years that I know of!” Recalls Colin, “I remember working on a project called Wheel 2000, as we were leading up to the new millennium, it was a market leading new wheel. Obviously, 14 years later the working relationship has moved on many times but that was the first time I remember talking to John at length.” John explains, “I’ve been working with CNH for 30 years, at least. In the early days it would take all day to get there - I used to travel down the M1 and the north circular; there was no M25 or shooting across

cross country back then. I remember working with Colin on the Wheel 2000 project. It was a big change for us, it was a design development of a tubeless wheel incorporating the existing square disc design. A lot has changed since then, but the working relationship is a well-founded partnership - we develop a way forward for both sides mutual benefit.” Of course, technology has evolved in so many ways since the two companies began working together, both in terms of products and in each of the production facilities. “Colin has done wonders with that plant. The way it has changed with the times is quite remarkable. It is a state of the art facility.” John continues, as Colin adds: “GKN in Telford understand what we need, it has embraced change. Technology has changed and they have kept pace and continued to develop and support our requirements and market aspirations. From a Wheel point of view it’s about quality, reliability, delivery and service. Both sides have

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embraced lean manufacturing principles. It’s a balance between product design, performance and other things. Although we must remember a wheel needs to be as round as possible and a tractor can’t roll off the line without any wheels on it!” “Our relationship is one of mutual respect, we know what both companies want and we know how to try and make improvements between the two of us to make it happen.” As John contemplates his working life with CNH, he concludes: “You will always experience business pressures but the relationship is with the people and that helps transcend those difficult times. The fact that CNH is there in Basildon, the only tractor manufacturer in the UK is a real testament to the way they have moved forward.” And the secret to a long lasting working relationship? Colin thinks: “Never rest on your laurels and always look for ways to continually make the relationship better – Working together or projects, products and technology, listen to the demands and needs of the customer and work to develop products and technology together. It’s all about continuous improvement for me.” John concurs: “You’ve got to embrace change. ….and the people…….the people make it happen. I’d like to think that GKN and CNH’s working relationship will see another 50 years!”


Integrated PowerTrain Solutions

FROM POWER SOURCE Couplings

Clutches

Gearboxes

Driveshafts

TO POWER APPLIED Brakes

Controls

eDrives

Wheels & Structures

GKN Land Systems is a global leading supplier of technology differentiated power management solutions and services. We design, manufacture and supply products and services for agricultural, construction, mining and utility machinery offering integrated PowerTrain solutions.

WHAT WE DO: As a leading partner in the agricultural world, GKN Land Systems works closely with Global Original Equipment Manufacturers to meet the needs of the ever changing agricultural environment. Extensive R & D in increasingly intelligent and integrated engineering solutions ensures that we supply products that are efficient, enable increased productivity of machinery and take into consideration requirements for lighter weight and increased payloads.

Having supplied the agricultural market for over a hundred years we bring state of the art design and test facilities to supply robust and long service life across our range of products.

Further information can be found at www.gkn.com/landsystems

ENGINEERING

THAT MOVES THE WORLD


More than

different tractor configurations can be produced

complete considering the massive emphasise the company puts on continuous improvement. “To be honest, it’s been a slow drip filter kind of progress,” Larkin says. “In the first two or three years of WCM, it started with about five to 20 people. It has grown from five to 100 people who are totally immersed in WCM and are trying to take it forward. We’ve got some who are sitting on the fence but we know that as time goes by we are turning these people towards the WCM logic and way of thinking. “Five years ago the most difficult part of my job would have been a combination of the right parts not being delivered on time, as well as correct safety measures not being in place. These days it’s about how we get everyone understanding the losses of the plant, visualising the waste and being able to see that waste, whether it’s in quality disciplines or in production disciplines, how you visualise that waste and attack it in the right way. It’s much more strategic now than it was back then. There was much more firefighting then whereas now we try to turn away from firefighting with a far more proactive approach.” The concept of waste will always be the bane of any decent plant manager’s day-to-day operations. Not because of how they personally view the losses happening in their own plant, but getting their workforce to fully comprehend the different types of waste present in manufacturing. “I see a forklift truck go by with nothing on it returning somewhere and I automatically think waste,” Larkin says as one of the only forklift trucks left in the plant slips past us. “But I don’t think I’ve yet got to the point where all my supervisors can see that as waste. That’s just an empty trailer going back

44 www.themanufacturer.com | May 2014 | Issue 4| Volume 17


The pride of Essex

New Holland Agriculture

May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 45


The pride of Essex

We live in a dream world if we think we can stop and rest on our laurels, we have to be driving forward and we have to be efficient as possible Paul Haslett

46 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

New Holland Agriculture

to pick more Ea Bas rly ph material up. ildo oto n pla s of the n Some are rollint and t const g o he fir ructio starting to ff th st F e p ord n of th rod see that now and uctiotractor e n lin s e the more I can get on board with that the more that comes out of it.” that to fall To be fair, Larkin has had his fair apart again. share of lean and operational excellence These days training in order for him to achieve his you can see waste-reductive mind set. that we’ve “I had six sigma training in the done the early 2000s and some lean training project, we’ve throughout the mid-90s onwards,” he assessed the sustainability of the project explains. “But, it was only when WCM and it’s carried on going forward.” came along that we could piece it all His sentiments are backed by Paul together and turn it into one package Haslett, WCM plant support at Basildon, and say that there is a consistent route who says when looking at the UK map to where we want to get to. manufacturing sector as a whole, WCM “Before it was more like we had made is crucial to the progression, vitality and the project and fixed the problem, but sustainability of the industry. six months later it was quite normal for


Sears Manufacturing Are You Sitting Comfortably?

R

Founded in 1855, the Sears Manufacturing Company pioneered the development of specialist seating for the Agricultural, Construction and Industrial vehicle industries.

educing vibration inside a vehicle cab not only makes it more comfortable for the operators but will also reduce driver fatigue, resulting in increased vehicle utilisation, productivity and ultimately a saving to the business.

Today Sears is a global manufacturer with facilities in the U.S., Europe, China, India, Japan and Brazil, and is proud to be a supplier to CNH, both at the facility in Basildon and many other CNH locations around the world.

Since 1997, Sears Manufacturing has been providing CNH, and the Basildon facility, with technologically advanced seating systems that significantly reduce vibration levels inside the cab whilst maximising operator comfort and ease of use. Incorporating “Active Suspension” technology, Sears is able to offer products that deliver dramatic improvements in performance and help to meet the challenging requirements of European legislation in a “plug and play” solution.

As with many of our customers, Sears has worked closely with CNH in a number of joint design and development programmes that have delivered innovative, reliable and cost effective seating solutions for the CNH product range.

All this, together with our focus on meeting the expectations of our customers in areas of quality, reliability, cost and delivery have meant that Sears Manufacturing has maintained and grown its leading position within the work vehicle seating market place.

Key Statistics

Leaders in off-road seat design and innovation Global manufacturing and supply footprint Supplier to many of the world’s biggest OEM customers Independent Aftermarket distribution network More than 150 years heritage

Sears have now developed a new range of products that are providing all of the same core values of comfort, performance, quality and reliability but with increased focus on ergonomics and styling to meet the current and future expectations of our customers.

Sears Manufacturing Company (Europe) Ltd Unit 42 Rassau Industrial Estate Ebbw Vale, Gwent. UK Tel: +44 (0)1495 304518 E-mail: info@searsseating.co.uk

www.searsseating.co.uk


The pride of Essex

New Holland Agriculture

50 YEARS: the progression of tractors produced in Basildon including the limited edition Silver Jubilee model and the latest Golden Jubilee model

Manufacturing for change

Automated guided vehicles move the large chassis onto the production line

“I think WCM is fundamental [to UK manufacturing] and improvement does not and should not stop,” Mr Haslett says. “We live in a dream world if we think we can stop and rest on our laurels, we have to be driving forward and we have to be efficient as possible.” Continuous improvement and the ideals of constantly searching for a better way of working, more often than not, strikes a nerve with a lot of entrenched workers. An often realised struggle for managers is the challenge of convincing these workers that

48 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

continuous improvement, and World Class Manufacturing for that matter, does not mean more work and that if it is implemented right should mean work involves less effort for those involved. “It’s not just about pushing the people to work harder, it’s about getting it so they’re working easier,” Haslett said. “WCM is not about putting more work on people, it’s about making that work easier and more logical so they can do more in a certain way. It’s fundamental not only to the way we do things here, but also to UK manufacturing as a whole.”

Larkin and his team at New Holland Agriculture are a pertinent case for the positive results of professionally implemented World Class Manufacturing. As Larkin and I walk towards the end of the production line, as tractor cabs are pushed by hand nearby to have their final customerspecified trim designed and installed, I ask him about a certain section of the shop floor which remains largely unused, and in a somewhat state of disrepair. “Later this year we’re going to move the cab line from its current location running west- east in the plant and move it north-south,” Larkin explains, cutting himself off as he throws a light-hearted quip at a co-worker’s pastry-laden lunch option. “This is all because of our lean vision towards the ideal production system to have material flow towards the main production line. “We then need to develop some projects around logistic process and plant material where it will no longer be delivered by a train or a forklift but by actually pushing the material towards the production line. You’ve seen today a lot of our material is big and bulky and we still have the goal of being able to push it towards the production line in the simplest, shortest, and leanest method. Our goal is to have one piece flow of each big part to the production line.”


Innovative transport solutions. Technically always a step ahead. Customised transport for major clients such as CNH. That is our goal. Years of experience, technical insight, knowledge about market demands and great commitment. Qualities which provide De Rooy a leading position throughout Europe. Owed to the ongoing efforts in the field of Research and Development. Innovative transportation methods, developed and built in-house. Ongoing close interaction with our customers to obtain best business practices.

Customer satisfaction, this is what it is all about at Transport company De Rooy. The company invests in long established relationships and is proud to have the opportunity to work for leading truck and tractor manufacturers around the world, like CNH. With their innovative transport solutions De Rooy is technically always one step further. As a result of many years of experience, technical insight, knowledge of the market’s demand and a huge commitment De Rooy can offer CNH customised transport solutions with a high added value.With these qualities De Rooy has obtained a trendsetting position in entire Europe. The company strongly developed itself and throughout the years it became a leading international market player with a very clearly described expertise: Custom-made transport, developed and built in-house. With the unique position of De Rooy, due to the continuous efforts in the field of research and

Our long-term partnership with CNH lasts for more than 10 years. Next to the distribution of tractor units to several European countries, De Rooy also provides dedicated inbound transport of tractor cabins to the assembly-lines of CNH in the UK and Austria. Tailor made trucks guarantee a maximum number of cabs being loaded and those same trucks are used for the outbound distribution of complete built units as well. Delivered just in time. A wide network and our own planning department contributes to this most efficient way of transportation.

development, CNH take the advantage of the best and most economical solution in the combination of deliveries and loading of cabins and complete tractors.

FACTS & FIGURES • • • • •

Market leader in truck & tractor transport 450 own trucks, 562.000 m2 storage capacity and distribution of 220.000 units a year Large European network with compounds Active in Europe, Russia and Middle East Warehousing & distribution of white goods within the Benelux

One of family De Rooy’s great passions is the participation in DAKAR, already since 1982. A rally where we, by means of applying our innovative techniques, collaborate in the top of the formula one of the truck-racing. And with success. In 2012 team De Rooy achieved the first place. In 2013 the fourth place and this year the second place in an Iveco truck.

DE Rooy HolDInG B.V. Ekkersrijt 2037, 5692 BB Son & Breugel The Netherlands T (+31) 0499 485 111 F (+31) 0499 485 201 E info@derooy.com

WWW.DERooy.CoM


Employees first

About 600 people are employed in the manufacturing process at New Holland Agriculture’s Basildon plant

New Holland Agriculture aims to have the new cab line in place and running by August this year to allow room for a potential new line of tractor, the biggest assembled at the Basildon plant. “In both of those projects there will be workplace integration, so all the pillars of WCM will be making sure that we design and create it as lean as we possibly can, taking in all the tools that you need to use to make a very lean production line. It’s a huge task that takes a lot of resources and considerable investment – more than $5 million to make that happen.”

Specific spaces are allocated on the shop floor to encourage employee input into WCM and continuous improvement

50 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

Financial investment in facilities is crucial to New Holland Agriculture’s future growth, and it has relied on the benefits of professionally directed WCM to drive this. But as Larkin points out, growth is pointless if sustainability and the safety of employees are not the primary ambitions, an idea the entire UK manufacturing industry should adhere to, he explains. “A combination of lean innovation and high quality manufacturing are the things that will keep UK manufacturing at the forefront,” Larkin enthuses. “I worry about the safety aspect in UK manufacturing. I think UK manufacturers are losing business because not everyone is interpreting the health and safety rules in the same way that we do in the UK. Italy and Spain appear to be much more negligent, but they can undercut their prices, which worries the life out of me. “Like for like processes, you know they are cutting corners in certain ways, and one of those ways is safety. I’d like to see some European standards implemented in a like-forlike consistent standard across the board in different countries. “CNH Industrial and Fiat Chrysler Automobiles are all doing WCM, but there are different layers that you can see people need to get to. We’re a benchmark plant to come and look at for safety. “Safety is one of the WCM pillars. It’s the first pillar and the most important. The tools to fix safety issues are very


The pride of Essex

much like quality defects in that they’re quite simple tools to follow and then we measure lost time accidents, the length of the lost time accidents and the unsafe conditions that are made safe after the fact. All our numbers are in a positive trend. We’ve now gone 420 days since our last lost time accident in the plant. We are always preaching that

New Holland Agriculture

if someone comes to work we want to send them home in the same condition as what they came in.” It is this ideal of putting the employees’ safety at the forefront of operations, and in doing so, making the plant run more efficiently, that makes New Holland Agriculture such a standout manufacturer in the UK. It

was these principles and actions which contributed to the plant being awarded World Class Manufacturer of the Year as well as all round Manufacturer of the Year at ’s Manufacturer of the Year awards in 2012, both trophies of which, sit proudly beside the entrance to a factory floor all UK manufacturers should be proud of.

SPECIALISTS IN SYSTEMS FOR COUPLING, TOWING AND LIFTING IMPLEMENTS FOR AGRICULTURAL AND FORESTRY TRACTORS AND CONSTRUCTION EQUIPMENT www.cbmgroup.it Automatic Hooks for Lower Links

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CBM S.p.A. – Via L. Gazzotti, 284 – 41122 MODENA – ITALIA Tel. +39 059 287911–284084 – Fax +39 059 280876 – E-mail: info@cbmspa.com - www.cbmspa.com May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 51


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.

I

n March’s Budget, Chancellor George Osbourne boasted: “Today I have cut the cost of manufacturing in Britain.” He added the government was on the side of manufacturers, hailing “a Britain that makes things again – a budget for makers, doers and savers.” As EEF released a quarterly report revealing strong sales and a boost in overseas trade,

manufacturers appear to be enjoying a flourishing economy. The combination of economic growth and praise for hard work and saving is the perfect landscape for businesses to embark or continue on a lean journey. This month LMJ reveals another cross-section of best practices and research from the world of lean, with contributions from LMJ Annual European Conference speakers Steve Yorkstone and Torbjørn H. Netland and a case study from Cressall Resistors, where managing director Cy Wilkinson, discusses the struggle against inefficiency.

The word from the top Torbjørn H. Netland, senior researcher at SINTEF, shares his latest paper published in the International Journal of Operations and Production Management. He identifies four possible factory responses when management rolls out a new corporate lean programme.

D

eveloped from a review of the literature on managing global improvement programmes, the 4A model explains how subsidiaries can respond to a corporate lean programme. The 4A model identifies four generic factory responses to a corporate lean program. Explanations of each reaction are included below. The upper right quadrant entitled “adopt”, means the subsidiary factory embraces and implements the global lean standards in full. The lower right quadrant, labeled “adapt”, means the lean programme, while profoundly implemented, has been adjusted to fit

52 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

local needs and contingencies. The lower left quadrant, “avoid”, describes how subsidiaries sometimes simply sidestep the corporate lean programme (or sub-practices) altogether. The upper left quadrant, “act” (as in a spectacle), describes how subsidiaries engage in pretending behavior to comply with institutional pressures to implement the corporate lean programme. All four factory responses are usual

and present multinational companies aiming to implement lean in their dispersed network. By sorting the factories according to the 4A model, we suggest that senior managers can better manage the implementation of corporate lean programmes.


www.leanmj.com

The struggle against inefficiency Managing director of Cressall Resistors, Cy Wilkinson, shares his thoughts on how to keep production relative to increased sales, as well as his advice on keeping the constant threat of inefficiency at bay.

Lean manufacturing

Hi tech: lean tech Senior consultant at Edinburgh Napier University, Steve Yorkstone, compares the duplicitous appeal of technology and how drives towards new software and technologies can limit improvement to how visionary change has been enabled by good technology.

W T

hough communism may be declining in China, the theory of continuous revolution developed by its founding father Mao Tse-tung may have some parallels on free market manufacturing management thinking. This is particularly true in the case of lean manufacturing ideology, which demands constant change and re-assessment. The struggle is not a military one at Cressall Resistors, but one that constantly seeks to fight manufacturing inefficiency. Our strategy incorporated the use of eight lean tools: Value stream mapping; 5S; Standard work; Flow; Pull; Total productive maintenance (TPM); Mistake-proofing; Set-up reduction. When all orders are bespoke, most of the room for error occurs at the beginning, so we put closed loop systems in place to pick them up fast and take immediate preventive action to ensure that when similar projects come up, mistakes will not be repeated. Every instance is logged electronically and cannot be closed unless preventive measures are in place and signed off. Our continuous revolution has only just begun and we do not expect it to ever end. Read the full article at bit.ly/1kS4yFU

hat should we make of this love affair with gadgets? What do developments in new technologies mean for lean? For one, technology provides access to data that can inform our decisions in new and interesting ways. Big data is not new. According to The Telegraph, for over a decade, Tesco has been tracking customers using its Clubcard, and tailoring each of its stores with the information provided. Facebook, celebrating its tenth birthday in February 2014, with 1.11 billion members is just one of a number of services affording businesses the ability to precisely target customers. The impact machine intelligence could have on our lives is almost unimaginable. If super-intelligent machines can replicate themselves, then once the tipping point is crossed, things could change very quickly. This is the stuff of science fiction, but some commentators genuinely believe that super-human artificial intelligence could happen before the mid-point of the 2100s. Others urge caution, but many see it as inevitability.

Technology provides access to data that can inform our decisions in new and interesting ways

The conclusions are something we already know. We know that we need leadership and vision. We know we need strategy and stewardship. We know we need people who can take chaotic realities and turn them into opportunities. We know it’s our human capacity to hold contradictory views, to doubt ourselves; and then to innovate, which lies behind so much of lean, the challenge of the 5 whys, the plan-do-study-act cycle and the wisdom to really understand purpose. Read the full article at bit.ly/RiqUn0 May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 53


Kimberly Clark

Manufacturing Leadership

Waste is the enemy of any manufacturer that seeks to operate efficiently. But how can you be sure you’ve truly driven it out of your business?

E

ven when you think you’ve trimmed back every excess broader than cost alone, it’s likely there is still more that you could do. This has been been the driving force behind Kimberly-Clark Professional developing the Efficient Workplace programme. Guided by lean business principles, The Efficient Workplace programme aims to help manufacturers in the automotive, aerospace and metal sectors to identify waste and hazards to create a leaner, safer and more productive work environment. It’s a unique approach for improving

54 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

The Efficient Workplace programme aims to help companies in the automotive, aerospace and metal manufacturing sectors to identify waste and hazards to create a leaner, safer and more productive work environment

productivity, efficiency, quality and profitability by taking the principles of Lean and applying them to industrial supplies and PPE. The approach is based on finding the right solution for each individual company. The programme starts with a waste and hazard walk. A KimberlyClark Professional representative will visit your facility to view first-hand how your business operates day-today. During this site assessment, they will identify and advise on potential areas of waste or hazards within your processes and recommend specific countermeasures. Despite increasing efficiency rapidly becoming a major focus for most businesses, customer consultation from Kimberly-Clark shows most managers find particular benefit in having a second pair of credible eyes to spot areas where further improvement is possible, particularly in regards to industrial supplies. It saves time, effort and ultimately, money. The Efficient Workplace consultative approach means Kimberly-Clark Professional will work with you to: Reduce re-work Minimise unnecessary worker motion and over-processing Decrease incidences of occupational diseases and lost working days Increase adherence to safety procedure Kimberly-Clark Professional’s account managers all have in-depth industry knowledge, and have been fully trained in lean principles. They use a consultative approach to identifying waste and suggesting ways to reduce or eliminate it using specific products and services designed for the unique needs of the automotive, aerospace and metal manufacturing sectors.

FURTHER READING: To find out more about The Efficient Workplace and how it could help you visit: www.kcprofessional.co.uk/ efficient/MAN


UK manufacturing is in a period of strong recovery. Output is up, order books are expanding, and inventories are low – always a sign that activity is accelerating. This is the first in a series of articles by Peter Russell, head of manufacturing & industrials for RBS, exploring how UK manufacturers position themselves for growth and long-term success. In this edition we examine whether UK manufacturing investment is on the right track.

56 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

C

apital expenditure has been one of the biggest casualties of the recent recession. We have seen manufacturing companies pay down their debts and slow their investment rates considerably, with many preserving large amounts of cash. However, this wait-and-watch approach to investment cannot go on indefinitely. We strongly believe that this investment cycle is about to turn, and the need for manufacturers to focus on their investment strategy and timing is now greater than ever before. Many companies are saying that manufacturing investment is about to rise. Investment intentions, as recorded by the quarterly Business Trends Survey from EEF, the manufacturers’ organisation, and accounting and business services firm, BDO, have been reaching new highs since last September. In its latest survey (forwardlooking for the first quarter of 2014), EEF found orders close to record highs, and recruitment and investment intentions at an all-time high. The balance of companies intending to increase investment was +34%, with positive intentions coming from the majority of sectors and from firms of all sizes.

Intentions versus investments

Actual investment is rising too. For the first time since 2007 the UK has now recorded four consecutive quarters of rising investment, according to the Office

for National Statistics. In the last quarter of 2013, the biggest share of the quarterly increase was from business investment, and in asset terms the biggest increase was in machinery and equipment. According to Gary Leitch, managing director of corporate asset finance at Lombard, RBS’ asset finance arm, the investment trend is set to become stronger as the recovery in demand and output is established. Investment growth has lagged output growth since 2008, but Oxford Economics has recently forecast that by the beginning of 2016, investment growth will overtake output growth. For five sectors – food and drink, chemicals, metals, automotive and other transport including aerospace – the forecast is that investment growth will be sharply higher at 35% between now and 2021.

Asset finance is the manufacturer’s choice

And how will that growth be financed? According to Leitch manufacturing as a whole is already more experienced than other sectors in using asset finance. “Results from EEF’s Financing for Assets Survey show that where only 20% of all businesses have used asset finance, in manufacturing over 85% of firms have used asset finance, and almost half of manufacturers have used it exclusively,” explains Leitch. In terms of both volume and growth of investment, Oxford Economics reports that other transport sectors,


Positioning for Growth

for example aerospace, will lead other sectors in the near-term, with £2.3 billion of annual investment forecast by 2016, accounting for just over 16% of total manufacturing investment.

Investment in reshaping supply chains is critical Over the last couple of years aerospace investment has focused on capacity, driven by strong demand for civil aircraft. However, that may change. The coming investment round is likely to be more about improving competitiveness right through the very fragmented aerospace supply chain. The OEMs will be facing increased pressure to produce products more cheaply, without any sacrifice in quality. This means the sector needs to address how it will reshape a vast supply chain, in which many smaller companies operate without the ability to invest sufficiently or produce at greater volume. The other big investment challenge is likely to be in the food and drink sector. Although Oxford Economics forecasts suggest the rate of investment in the sector is unlikely to match the 2008 high over the next few years, it will still be the second biggest manufacturing investor with around 14% share of all investment between now and 2021. “We think that here the focus will be primarily on the need to maintain margins, but there will also be continued foreign investment interest in the strong UK branded goods sector,” says Leitch. “Additionally, another stimulus for investment is the temporary increase to the Annual Investment Allowance, announced by the Chancellor at the Budget Statement in March. This increases from £250,000 to £500,000 per annum – an incentive that not enough businesses are aware of.”

Investment must maintain margins

Margin pressure in the food sector will certainly continue and we are already witnessing extensive new product development to counteract those pressures, and that is a positive step. But maintaining margins over time is all about investing in logistics, cost management, and managing the relentless focus on certification, food safety and sourcing. Brands are an important defense in maintaining margins, and investment in differentiated premium products that respond to changing consumer preferences will be critical for companies

competing for market share. This point is perhaps best exemplified by the number of recent acquisitions of branded food manufacturers, some of which have attracted considerable overseas interest. Over time, higher manufacturing investment will be correlated with higher growth. Along with aerospace and food and drink, Lombard also expects other UK manufacturing sectors to be making significant investments between now and 2021, with chemicals, automotive and metals products likely to be the other high-investment, high-growth sectors. Yet so far, the investment trend has been positive but muted. That the biggest investments are yet to come is strongly suggested by EEF’s Business Trends Survey which shows that while manufacturers have been optimistic on investment growth since early 2011, these positive intentions have not yet been fully matched by actual capital expenditure.

It is all down to market confidence – globally

Clearly, manufacturers are still concerned about the durability of the growth in demand. While confidence is returning, manufacturers are cautious in their outlook, and they are concerned about the world economy. Companies are mindful of the slowing Chinese economy, and about the rate of recovery in Europe. Exports are not picking up to the same extent as output, which means that much of today’s growth is domestically-driven.

ROYAL BANK OF SCOTLAND

85%

Source: EEF Financing for Assets Survey, 2011.

50% 20% UK businesses who used asset finance

UK manufacturing firms using asset finance

UK manufacturing firms using asset finance exclusively

The net effect of all this is that while companies want to invest, there is still a big question over the timing of investment decisions. Such concerns are valid and should be given due attention – but shortterm fears should not be allowed to inhibit long-term planning. When the largest manufacturing groups do make some very big investment decisions, their effects will be felt right through their respective supply chains – acting as a catalyst for change in many UK manufacturing businesses. RBS works with manufacturers in all sectors and is committed to supporting UK businesses position themselves for growth and long-term success. We believe that an unwavering commitment to implementing sound growth strategies, building worldclass management teams, investing in R&D, technology and training will be essential to realising success. further information Peter Russell Head of Manufacturing & Industrials, RBS Corporate & Institutional Banking T: (0)20 7672 1007 E: peter.russell@rbs.co.uk Gary Leitch Managing Director, Corporate Asset Finance Lombard T: (0)20 7672 2482 E: gary.leitch@lombard.co.uk

May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 57


Serve yourself

which can support the practice leaders,” he says. “Today the concept is not pervasive.” But why is it not?

Obstacles and vision

Revealing the pathways to advanced service provision for UK manufacturers.

“T

Baines. “Indeed, relative to the size of the UK economy I’d say we have one of the highest densities of practice leaders in the world. “Look at our conference keynotes,” points out Baines. “We’ve got a lot of the big names in the field – Rolls-Royce, Alstom Energy and MAN.” There’s also vibrant representation from SME manufacturers, which have worked with Aston on a European Regional Development Fund project, experimenting with the potential of servitization for smaller firms. “In the last 18 months We will show what a servitized world 15 Midlands SMEs have could look like generated a combined value added of £2m Professor Tim Baines through the growth of Aston Business School’s Centre for Servitization services,” Baines relates. “These companies range in size from those employing less than 20 to those Our conference will help manufacturers employing about 100.” to gauge their expectations of the While £2m seems a fairly insignificant process, understand how far their sum in macroeconomic terms or when servitization model should go and gain compared to the revenues a company an impression of how it will impact on like Rolls-Royce can reap from service their revenues and profits.” provision, it is worth remembering The potential benefits that servitization can bring to manufacturers’ the West Midlands alone is home to around 2,000 SMEs – so a wider profit margins will form a significant uptake of servitization could have a core to discussion and case studies big impact. at the May conference. Other benefits But although evidence is growing connected with becoming closer of the benefits and opportunities to customers will also be covered advanced service provision can offer, as well as the challenges involved Baines admits the concept is still far in organisational transformation for from mainstream. servitization and the role of IT in “The big opportunity for the UK is delivering advanced services. to develop a supply chain which is “The UK is home to some practice confident in the provision of services leaders in servitization,” observes Prof he potential impact that servitization could have on manufacturing is similar to the impact that lean has had. It’s a paradigm shift.” So says Professor Tim Baines as we discuss the content he has planned for Aston Business School’s Spring Servitization Conference from May 12-14. “There is no question about whether a manufacturer should servitize,” he continues robustly. “You have to do it.

58 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

The term servitization dates back to the 1980s – it’s not new. If its potential is so great – why has a craze for servitization not swept through modern manufacturing economies? There’s a mixture of reasons says Baines. Firstly the technology to support servitization has not been as mature or accessible as it has recently become. Secondly, the challenges in organisational transformation including culture change and systems for contracting and sharing risk have not been fully acknowledged. Thirdly, bit-part adoption of basic and intermediate services has clouded perceptions of the end goal of advanced service provision. “I started my career in manufacturing in the mideighties when everyone was beginning to be concerned with just in time and lean [methods],” says Baines. “I see so many parallels with the way the debate about that concept evolved and the way the debate about servitization is developing. “People asked then what all the fuss was about. Many manufacturers were sceptical because they’d experimented with putting a Kanban system within one part of their factory and in doing that they said they had just in time production.”


Servitization

Are you game?

Event preview

Proving the Service Continuum

A core theme at Aston University’s Spring Servitization Conference is the role of technology in delivering advanced services.

In March, Oxford Economics published a PTC sponsored report; Proving the Service Continuum.

In part, this will include an exploration of the Internet of Things and the way in which the miniaturisation and increasing affordability of sensors has made remote monitoring and data collection more accessible.

The study aimed to quantify the strategic and economic impact of global service transformation and received input from 370 global manufacturers turning over in excess of $1bn.

A wider look at IT and emerging systems designed to support servitized manufacturing business models will be led by event partner PTC. In addition, Aston University, with help from the Advanced Manufacturing Research Centre in Rotherham and the Serious Games Institute in Coventry, will demonstrate how ‘gamification’ can help companies through the change management process required for servitization.

The report showed:

The business simulation game will challenge delegates to develop an advanced service system for a supply chain involving a hotel, a brewer and a manufacturer of brewing equipment.

of firms said they deliver advanced services today, but

“This game will help to display the art of the possible for servitization,” explains Baines. Aston University’s Spring Servitization Conference takes place May 12-14 in Birmingham and is partnered by PTC and The Manufacturer magazine. Find out more at bit.ly/ServitizationConf. 10 Of course this localised, small scale adoption barely scratched the surface of the benefits that can be offered when a true lean culture is adopted, Baines observes. “I’d say that many companies are at a similar level of maturity with services. “They have a few basic or intermediate offerings – a bit of maintenance, spare parts and a help desk – but there is a world of difference between this and advanced service provision whereby a company 13 undertakes to provide the capability that will allow a customer to run their business.” Baines hopes 11 this May’s Aston conference will highlight the extent of 13 the ambition available to firms who are bold enough to adopt the servitization model. “We will show what a servitized world could look like,” he sums up.

said they would transform to support advanced service business models within the next three years.

9

9

11

9

12 11

13

21

Respondents work in C level and above jobs across the following functions: Service Sales Marketing Engineering Operations

Respondents operate in the following sectors: Aerospace and Defense Automotive and Transportation Commercial or Cargo Airlines Electronics and High Tech Equipment Heavy and Industrial Equipment Medical Devices and Equipment White Goods Manufacturing

One of the issues we have with understanding servitization is the difficulty in getting hold of reliable data. This report provides one of the best data sets I have seen in this area Professor Tim Baines, Aston Business School

May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 59


More than that

RBS and NatWest mean business in the drive to help SMEs take advantage of supply chain opportunities offered by reshoring, recovery and the government’s drive to rebalance the economy. Mark Eastwood, head of manufacturing for NatWest, explains.

I

The Catapults…have been successful and we believe it is very important that more SMEs recognise how they can benefit from these initiatives

60 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

t’s an ill wind that blows nobody any good but you would be hard pressed to find anyone who benefitted from 2014’s winter storms – particularly businesspeople in Somerset, whose views of fertile farmland were replaced by the endless vista of fields drowned under floods, for months on end. However, the damp misery did give NatWest the opportunity to provide a clear demonstration of its focus on providing innovative and practical help to businesses of all sizes. “Our UK Storm Business Fund, launched with £250 million, was established to provide short-term, interest-free financing to business,” says NatWest’s Mark Eastwood, who

supports SMEs with turnovers from £2-£25million. “The winter storms had a notable impact on local businesses, in the south-west especially and on the supply chain, leading to a slowdown in production. The Storm Fund was an example of quick reaction and response we took to help businesses affected by the floods get back on their feet.”

New energy, new approach

Banks’ relationships with businesses, especially SMEs, have traditionally revolved around conventional banking and lending, including overdrafts, usually secured on property. This is not to underestimate the importance of current accounts, invoice financing and overdraft facilities, which are essential business


NatWest

tools, but the nature of manufacturing is changing. Some opportunities are novel and the established ways are not always enough. NatWest has developed a range of approaches and services that go beyond the basics and look to wider horizons. For example: the cost of energy affects competitiveness and NatWest is now taking a more proactive approach. “We have created an independent energy audit service, which helped manufacturing customers in last November’s pilot scheme to achieve average projected potential savings of £23,000 a year,” Eastwood says. Over 60 businesses with an annual energy spend of between £10,000 and £200,000 a year took part in the pilot. The projected benefits included annual savings on invoices as well as potential refunds from overpaid energy bills. The audit programme, run in partnership with Mentor, RBS Group’s business consultancy service, has now been rolled out across the whole country. Its remedies can range from the simplicity of changing lighting to LEDs and switching to more advantageous energy tariffs, to larger-scale investment in onsite energy generation. Research undertaken by NatWest at the end of 2013 found that 96% of respondents were on standard energy tariffs; only 11% were generating their own energy through renewable technology and 54% of manufacturing businesses had not even considered renewables. As manufacturing is particularly affected by energy costs, switching over to alternative sources, where practical, can deliver more ‘bang per buck’ than in service industries. For that reason the bank is putting money where its mouth is, in the form of its Energy Efficiency Fixed Rate Business Loan scheme. It offers loans from £25,001-£500,000, with no arrangement fees for new borrowing. The fixed rate means that repayments will be known for the entire term. Capital repayment holidays of up to three years are also possible, as is penalty-free early repayment.

Megatrends: recovery, reshoring, rebalancing

There are two developments that could be described as ‘megatrends’, in that they and their effects are inescapable and should have a bearing on strategies across

Manufacturing Leadership

the board. They are the economic recovery and the growing evidence of reshoring. The recovery is welcome, as is the government’s continuing vocal support for manufacturing in its pursuit of rebalancing the economy – and especially the £100 million it has committed to strengthening the UK’s supply chain. These factors offer opportunities but they have to be approached with care; history is littered with the remains of businesses that survived recessions and setbacks but then fell victim to over-rapid expansion. “We see multiple dynamics to the supply chain,” Eastwood says. “We are seeking to help our customers to make sure that their overheads are as low as possible and that they are as agile as they can be to help maintain competitiveness. While access to finance is not coming across as a major issue, when businesses embark on new ventures, seek to expand into new areas or to develop into new markets we look to help them ensure that the impacts of those efforts, including on cash flow, are understood.” Eastwood emphasised that NatWest has found that manufacturing businesses especially, display a high level of due diligence before committing to major strategic moves. Companies are found to take anything from 12-18 months to investigate opportunities before committing to large investments, in new machinery for example. In response, NatWest has responded with finance arrangements that are appropriate for the real world. “A new piece of plant or machinery may be made overseas and could take several months to arrive. Our financial packages reflect that payment may have to be made some time before the benefits start to flow,” he said. The approach to security has also developed. Asset-based financing, so long a fixture for OEMs and Tier One companies – the big beasts of the commercial jungle – is now becoming available for SMEs as well. Eastwood continued: “Manufacturers are acutely aware of the need to invest in innovation and technology and it is encouraging to us that people want to be seen investing in the future.” NatWest is also facilitating and encouraging improved networking and communications between OEMs/ Tier Ones and the deeper and wider supply chain.

We are looking to provide support on a holistic basis. We recognise the importance of support in strengthening connections between SMEs and the OEMs, and we are looking to provide what we can to help to tighten up the supply chain

Spreading the word

“We have regular conversations with our larger customers to see how their initiatives are filtering down to SMEs,” he continued. “It is important to ensure a good understanding and we know that SMEs are open to hearing how OEMs can help them. The Catapults, for example, have been successful and we believe it is very important that more SMEs recognise how they can benefit from these initiatives.” He said that these connections are being strengthened already and that OEMs have recognised the benefits that come from reshoring, in terms of proximity to suppliers and markets, agility and flexibility. “The ‘Made in UK’ stamp has maybe not been used enough. It is a strong brand, with high recognition, quality and trust,” Eastwood said. NatWest has commissioned research jointly with the EEF and on its own initiative to help it better understand SMEs’ needs. The result has been a commitment to make its resources, expertise and contacts better known and more widely available, whether it is in dealing with local issues or in meeting the challenges of overseas markets and customers, in languages, culture, financial and legal environment, and the provision of banking facilities. “We are looking to provide support on a holistic basis. We recognise the importance of support in strengthening connections between SMEs and the OEMs, and we are looking to provide what we can to help to tighten up the supply chain,” he concluded. May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 61


Google Atmosphere 2014

Manufacturing Leadership

The changes to technology have been absolutely critical to what we do Steve McGlennan Hybrid Air Vehicles

Innovation is key

Steve Jobs once said that “innovation distinguishes between a leader and a follower.” Manufacturers should take note.

M

anufacturing in the UK faces many struggles - it always will, as will all industries. The pace the world and social culture is moving in regards to technology and innovation is already heavily impacting manufacturing both in the UK and worldwide. Google Atmosphere, a recent event held by Google Enterprise at the tech and innovation giant’s London HQ, brought together leading industry figures to share ideas around the need for

Steve McGlennan speaks at the Google Atmosphere event in London

62 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

industry to innovate to not only survive, but to stand out from the pack. With speakers from Google Enterprise, software and IT specialists, UK manufacturers and The Manufacturer’s Nick Hussey (bit.ly/PpIi7A), the event created an atmosphere where like-minded manufacturing types could explore the future potential of industry. A major highlight of the conference was a guest talk from Hybrid Air Vehicle CEO Steve McGlennan. “In 2010, the US Army asked us to build a modern airship for them, and in 2013 the fiscal cliff came along and they didn’t have enough money to carry on that project,” Mr McGlennan said. “The idea we had was to take from them, the physical aircraft and to carry on its development on a commercial basis so to marry up the intellectual property which we already owned with the physical

manifestation of this glorious $300 million, 300-feet-long modern aircraft.” The aircraft combines the best bits of fixed-wing normal planes, helicopters and airships, McGlennan explains. “It’s good for some things that other aircraft aren’t good for and that’s what this aircraft is going to do. “The first thing this is designed for is to be able to fly for a long time. Typically an aircraft can fly for a few hours, this one can fly for three weeks. With that persistent flight we can do numerous things, particularly around communications. The other thing it can do – like a helicopter – is move from place to place, from point to point without the use of runways. Therefore, anyone who wants to move heavy objects from one place to another without the use of runways could use this.” McGlennan speaks for the power of innovation when he refers to his company’s project using “big ideas to unlock little ideas.” While the massive airship is a huge step in innovation itself, McGlennan said it was only possible through the ability for Hybrid Air Vehicle’s supply chain to be able to work along a similar innovative process. “The changes to technology have been absolutely critical to what we do,” he said. “You couldn’t do what we do 15 years ago because the materials weren’t there. Now we’ve got things like strong fibres that allow us to make hulls that are light enough for our job. The changes that will happen in the next 15 years will continue to be material science tech changes, but the information changes and how they bring to life our product is what’s going to be important in the next 15 years.” FURTHER INFORMATION: Watch the video of the Hybrid Air Vehicle prototype’s flight at bit.ly/1iaGKLs


Pinsent Masons

Product safety’s brave new world

Manufacturing Leadership

New obligations include: ensuring that design and manufacture ensures the safety requirement having production procedures which ensure continued conformity with the safety requirement proportionate to possible risks, carrying out sample testing of product, logging and investigating of complaints and nonconforming product and keeping distributors informed ensuring that type/batch/serial numbers and manufacturers name/contact point and address are all visibly applied to product (or in some cases packaging) to aid traceability and recalls drawing up technical documentation for each product.

Andrew Masterson, product liability partner at international law firm Pinsent Masons LLP, addresses the incoming changes to EU product safety measures following a recent upsurge in product recalls.

S

afety related recalls and withdrawals remain a regular and costly fact of life across the EU. Recent data from Rapex suggested a rise of 4% in 2013 for automotive and consumer EU cross-border recalls. The ongoing rash of safety related recalls in the motor industry this year serves to underline the prevalence, risk and cost posed by mass-market product faults. Enter stage left the EU commission. The commission has decided to revisit Europe-wide regulations on consumer product safety and market surveillance. The aim is to introduce new regulations in both areas in 2015. It sees common product safety rules as essential to the single market and in turn to growth and jobs. Its rationale is that common safety rules ensure a level playing field for business and free trade within the EU. Equally it sees enforcement, especially at the EU’s borders, as essential to driving out low quality producers who compromise safety and free trade. The Commission will address product safety standards via a replacement of the General Product

Safety Directive 2001/95 (implemented here in 2005). The directive is directed to consumer products, particularly where there is no specialist safety regulation of a given product type or where there are only partial safety provisions. In the draft regulations the basic safety benchmark that applies to consumer products placed on the market remains. The requirement will be A raft of new that the product must not expose persons to obligations affecting design, risk under reasonably manufacturing, packaging foreseeable conditions of use. and corrective actions However, a raft of will require close attention new obligations affecting since failing to comply may design, manufacturing, packaging and corrective mean product having to actions will require close be withdrawn attention since failing to comply may mean product having to be withdrawn. Finally there is a much enhanced obligation to take corrective steps. Where a manufacturer has reason to believe that a product is not safe or otherwise not in conformity with the technical documentation or other obligations described above, there will be an obligation to take immediate corrective action to bring the product into conformity or to withdraw it or recall it. For manufacturers of products subject to existing harmonised regulations (e.g. building products) much of this will already have landed. However the new regulations broaden out this required approach to quality, traceability and correction across large parts of the market previously untouched by this level of regulatory rigour. May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 63


EEF Insights

Manufacturing Leadership

Automation or DOMINATION Tom Lawton, head of manufacturing at business organisation BDO stresses the case for the UK to embrace robotic automation or face being left behind.

T

he influential Foresight report (bit.ly/1eq3KVP) released last year noted that the UK could be successful in manufacturing by focusing on research, innovation, design and service. But to be successful as a country that manufactures, we also need to improve our use of automation to minimise production costs. As the availability of lower cost and more effective computing power increases, the use of robots will inevitably become an

increasingly important factor in efficient manufacturing. After many years of low levels of investment, UK manufacturing will need to invest further in robots and other automation to stay competitive. In terms of average robot density, the UK struggles to rate a mention. However, UK manufacturers seem to have realised they are losing ground. We are now seeing more growth in the use of robots than any other nation in the world, with sales of industrial robots

Robots per million population

2013

2016

Republic of Korea

3152 4094

Japan

2433 2461

Germany Taiwan Italy Czech Republic Spain France North America Thailand United Kingdom

2004 1535 961 729 582

2150 1843 908 1028 577

513 516 45

546

307 486 246

317 Source: International Federation of Robotics

64 www.themanufacturer.com |May 2014 | Issue 4| Volume 17

doubling between 2011 and 2012. But some caution must be exercised when considering this growth, as the increase is attributable to the resurgence of the UK automotive industry which relies heavily on robots. Clearly the key to growing robot use in the UK would appear to be extolling the cost-saving benefits to other sectors. The food and drink sector is already utilising more robots in its processes. However, these machines are still largely only attractive to bigger companies that can afford the initial capital outlay. Understandably, there is concern that an increasing use of robots will steal jobs from workers. However, robot manufacturers claim that increasing the use of robots can actually help to create jobs, as efficiency savings will encourage manufacturers to onshore parts of their production process after previously off-shoring to lower labour cost countries. We suspect there is truth in both statements and that robots provide both a threat and an opportunity to the workforce in many industries, not just manufacturing. But coping with emerging technologies has been an ongoing story within manufacturing since the days of the industrial revolution and generally automation has been a very positive factor and supporter of job creation. Automation and robotics is gamechanging technology and the government should offer strategic support to UK manufacturers to enable increased investment in the area with a specific emphasis on the mid-market. The increase of the Annual Investment Allowance announced in the Chancellor’s Budget (bit.ly/1kM9l8h) could be a significant help to SMEs, which are struggling to invest, but it is unlikely to be of great value to mid-market or large companies. Other ways to support could be through assisted assessment programmes, training programmes (in the use of robotics within a lean structure and training in skills to use robotics), lower duties for the import of robots and enhanced tax reliefs. Robots will become more powerful, smaller, cheaper and more functional and will provide significant advantages for manufacturing applications. It is critical that UK manufacturing, and particularly mid-market players, are able to take maximum advantage of this important technology.


25th and 26th June 2014 Radisson Blu Edwardian Heathrow Hotel LONDON

5th Annual LMJ European Conference 2014

Early disco booking un avail ts are able ! Pleas e for de call tails

A cutting edge seminar programme designed to challenge the most experienced lean practitioner managing lean programmes across countries, sites or teams Who should attend? • LEADERS of improvement or transformation initiatives in multi• • • • •

site or enterprise-wide programmes PUBLIC and private sector organisational leaders GLOBAL or multi-site operations and production directors PROCESS/OPERATIONAL excellence directors and managers LEAN managers and directors CHANGE management managers and directors

Keynote speakers Jacob Austad LeanTeam, Denmark

Richard Holland

Managing Director EMEA, TBM

Richard Lloyd Sponsored by:

Global Head of Manufacturing Accolade Wines

Torbjorn H. Netland PhD

Senior Researcher SINTEF/NTNU, Trondheim, Norway

Joseph F Paris Jr.

Founder Operational Excellence Society LLP and Chairman, Xonitek Group of Companies

To register, please call +44(0)20 7401 6033 Or visit www.leanmj.com/annualconference2014


Katarzyna Kowaliczek

Employee of the Month May 2014 Katarzyna Kowaliczek

Health and Safety Coordinator Coca-Cola Enterprises

CV in brief

Katarzyna Kowaliczek Age: 29 Education: A-levels, College of Economics in Poland Career to date: Technician Operative, Coca-Cola Enterprises Wakefield, 2012 Quality Coordinator, Coca-Cola Enterprises Wakefield, 2013 to present Health and Safety Coordinator, Coca-Cola Enterprises Wakefield Hobbies and interests: Travelling, Snowboarding, Canoeing, Wakeboarding and Cycling

: What is your role and what are your main responsibilities? As health and safety coordinator, I work across all manufacturing and distribution functions at our CocaCola Enterprises (CCE) Wakefield site. The key part of my role is to ensure we continue to meet our legal obligations and comply with our CCE safety policy here at Wakefield, which is the largest soft drinks factory site in Europe. I’ve been working at the Wakefield site for

66 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

EMPLOYEE OF THE MONTH

seven years now. I actually began my career here in manufacturing, working on the lines as a technician operative before moving into the quality department looking after product and packaging conformance before I entered into health and safety. : What are the key technical skills you use? In my current role as health and safety coordinator I use my experience and knowledge of our safety and legal requirements to prevent occupational hazards and to ensure company standards are met. I’ve received specialist training every step of the way while I’ve been at CCE and I find it’s really useful to know the background to every aspect of our operational activities and procedures on the shop floor, which form the elements of how everything’s made. This knowledge of technical skills, line operations and maintenance allows me to concentrate on what are sometimes very specific safety issues at play across manufacturing and distribution. This can be anything from the safety haulier requirements, as in what the tankers should look like, to the dimensions of machinery on the line. : What personal characteristics help you in your role? Having a get up and go attitude influences everything we do and how we do it here at CCE as well as how we respond to and execute each project. Throughout my time at CCE I’ve been taught not to be shy to ask for new opportunities. It’s about seizing what’s offered to you, and then once you’ve got it, to do the best you can. : What do you consider to be your biggest personal success at the company so far? My biggest success so far has been the Gold Award I received last year for my on-site health and safety improvements. This is the highest recognition across our manufacturing sites, which are crowdsourced from nominations amongst your peers. Last year, our site’s safety manager was asked to support our Swedish site for six months and I was asked to step in as a deputy manager to look after the leadership of the site team and ensure continued high standards of health and safety performance. I had to get up to speed very quickly but it gave

me an opportunity to step up and take the reins during which I certainly learnt a lot. : What will be your next career move? I’d like my career to take its natural course and move into management as a next step. What I’d really like is to expand my knowledge even further and take on new challenges. It’s what makes my job different and interesting. : What first attracted you to a career in manufacturing? I’d have to say the flexibility. Manufacturing as an industry is very interesting because it involves so many different departments, functions and opportunities – it’s not just about technical skills. As a result, my to-do list changes on a daily basis, meaning every day is different. My educational background is in economics and I started my manufacturing career on the shop floor as a technician. Through this, I’ve developed in each role I’ve had here and it’s shown me there are so many opportunities for young people in manufacturing that sometimes graduates don’t realise. There’s a misconception that a majority of manufacturing jobs are based overseas but a vast percentage are returning to the UK because people want to rely on local manufacturers. CCE’s Wakefield site is 25 years old this year and we make 97 per cent of our products in Great Britain for the market here. Not a lot of people know that.


Getting the right contract, meeting carbon targets, monitoring consumption… We understand that you need more from us than just energy. With us, you’ll benefit from a strong, long-term relationship with someone who really understands your business. And with our expert knowledge and experience, we can help you monitor, analyse and control your energy use. Our products and services are tailored around our customers, so whatever your business needs, your dedicated account manager will help you find the right solution. Find out more at eonenergy.com/corporateenergy Or call 0330 4001 089 We’re here Mon–Thurs 8:30am–5pm, Fri 8:30am–4pm

Helping our customers. We’re on it.

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


Training for the future EEF’s investment in a new apprenticeship training centre in Birmingham adds to the assault on industry skills gaps. Victoria Fitzgerald reports.

I

t’s no secret Britain is facing a skills gap, with an increasing number of talented workers set to retire in the near future, how does a new generation consolidate its legacy in manufacturing? According to recent research by manufacturing body EEF, manufacturing contributes 11% of UK GDP, half of UK exports and employs 2.6m people. Yet, four in 10 manufacturers are struggling to recruit technically skilled staff to maintain the current pace of the industry. EEF is playing its part in alleviating the problem with the opening of its new training facility in Perry Barr, Birmingham. The centre replaces an older outfit at Tyseley, where demand for courses has outgrown the facility. The new £2m investment houses twice the number of classrooms and lecture theatres, as well as providing a greater range of coverage of manufacturing technologies including milling, CNC machinery, welding and fabrication. EEF aims to train 250 students a year at the centre. Although the centre unofficially opened its doors in September of last year, an event this April saw Khalid Mahmood, MP for Perry Bar formally unveil the facility.

68 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

y Barr, P for Perr e ler and Mown around th uo Sc y rr sh EEF’s Te ahmood are rmingham. Khalid M ing centre in Bi new train

This won’t solve the problems overnight, it needs to be complemented at all levels – from encouraging nine to 11-year-olds into STEM subjects and getting more 18-year-olds to pursue vocational routes Richard Halstead, EEF


EEF Snapshots

A former manufacturing apprentice at Delta Metals, Mr Mahmood holds the issue of apprenticeships and manufacturing close to his heart, calling them the “heart and soul of the West Midlands.” Mahmood said: “This is a fantastic project, and a wonderful opportunity to get young people into engineering. “Manufacturing has always been the lifeblood of Birmingham, and this ambitious initiative is exactly the type of investment in skills this city needs. It gives apprentices the training and ability to move forward, with confidence and with the appropriate skills. “There’s a huge intellectual heritage in engineering and we need to harness it to build the future.” Terry Scuoler, chief executive at EEF, added: “Young people are the future of manufacturing – their skills and talents are the lifeblood that allows British businesses to develop and grow. “Apprenticeships not only fill this gap, but they also offer young people an

workforce & skills

There’s a huge intellectual heritage in engineering and we need to harness it to build the future Khalid Mahmood, MP for Perry Bar

opportunity to kick-start an exciting and rewarding career, which is great news all round for the British economy.” Richard Halstead, Midland EEF director, said the facility was purpose built to replicate a real manufacturing environment and while it was not the antidote for the skills gap issue, it would act as a driving force to get young people into manufacturing roles. “This won’t solve the problems overnight, it needs to be complemented at all levels – from encouraging nine to 11-year-olds into STEM subjects and getting more 18-year-olds to pursue

vocational routes,” he said. “And there are lots of reasons to encourage this – the average pay in engineering is over £30,000, compared to £26,000 in the service sector.” During a tour of the facility, there was an unquestionable atmosphere of engagement. Young students from organisations like Bush and UTC Wolverhampton congregated in classrooms and gathered around machine simulators with enthusiasm. One student was overheard saying: “It’s expensive to get into university. I know that this is the best way for me to get a job long-term.”

EEF Training centre

£2million investment from EEF

More than

two-thirds

of manufacturers are expected to recruit an apprentice in the next 12 months British manufacturing sector employs

6 in 10 manufacturers took on an apprentice in the past 12 months

250

2.6 million people

apprentices will train at the facility each year

£30,000

the average pay in the manufacturing sector

May 2014 | Issue 4 | Volume 17 | www.themanufacturer.com 69


AAB

Manufacturing Technologies

Fuel for automation Cambridgeshire-based GB Innomech recently designed and built the world’s first automated manufacturing system for alkaline fuel cells, one of the most promising new forms of energy generation currently being taken up for industrial power generation. Tim Mead, commercial director at Innomech explains.

T

he fuel cell technology is clean, quiet and efficient but there are hundreds of components, or layers, in a commercial-scale fuel cell stack and the number of stacks needed to generate sufficient power make it almost impossible to manually assemble them at speed and at a competitive cost. The new assembly equipment has been developed for AFC Energy as part of its EU-backed POWER-UP consortium to develop and install industrial clean energy generation plants that will use hydrogen as a fuel source. The first plant is being built at an Air Products industrial gas processing plant at Stade, northern Germany and will comprise two AFC Energy KORE systems, each containing 24 alkaline fuel cell cartridges generating up to 250 kW at full power. The first system is due to be installed towards the end of this year. The fuel cell stack within a cartridge is made up of multiple layers of anodes, cathodes and spacer components, along with other essential components that are assembled in sequence to form specific channels to carry hydrogen, air or potassium hydroxide electrolyte during use. Although none of the individual components are particularly heavy, there are hundreds of layers and the final completed stack needs to be moved by forklift on account of its weight and bulk. The challenge for Innomech was to scale up the manufacturing process and to

70 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

automate the assembly of stacks to a consistent quality, while also allowing the operator to safely manipulate the stacks and to complete manual process steps at the start and end of the production cycle. The assembly system uses an ABB IRB 2600 industrial robot, with a 1.65m arm and a 20kg payload capacity surrounded by a racked enclosure with hoppers of fuel cell components. There are four bulk quantities of electrodes all with protective plastic spacers between each plate: one with cathode sheets face up, a second with them face down and the same for the two anode stacks. The stacks of layers are angled in the racking so that gravity helps with alignment and registration. Innomech has designed the automated manufacturing system to assemble fuel cell stacks with an agreed number of layers and interconnected anodes and cathodes but the system can also

Image courtesy of GB Innomech

Image courtesy of GB Innomech

Although none of the individual components are particularly heavy, there are hundreds of layers and the final completed stack needs to be moved by forklift on account of its weight and bulk

be quickly and easily reconfigured by its operator, if required, to build stacks with larger or smaller capacities. The second phase of work, which is due to start later this year, is for the company’s automation specialists to design and develop disassembly equipment that will allow fuel cell stacks to be taken apart layer by layer at the end of their working life. The electrode materials, plates and spacers can then be separated for recovery and re-use with the catalysts and other materials regenerated and recycled. FURTHER INFORMATION: For more in-depth information on this automation project, visit bit.ly/1h2LTQz


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Columbus

Connecting borders By 2005, a period of acquisitionfuelled expansion had left shot blasting equipment manufacturer Wheelabrator Group with a significant international footprint, but almost a dozen disparate ERP systems.

‘‘A

cross the countries we operated in, it turned out that we had different systems, different ways of working, and different business processes - yet the machines being manufactured in each country were fundamentally very similar,” recalls Phil Hawthorne, vice-president of business process improvement at the Altrincham, Cheshire-headquartered group. “As a result, not only couldn’t we compare operations consistently, but

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IT in Manufacturing

it was logically impossible for all these different ways of working - and different business processes - to each represent best practice. There had to be a single, better way of doing business.” Accordingly, he explains, Wheelabrator embarked on a twinstrand project of identifying and then implementing that single, better way of doing business. First, the company began a review of all the different ERP systems on the market with a view to selecting and internationally rolling-out the system that best met its needs. The system eventually chosen was Microsoft Dynamics AX - a decision based, explains Hawthorne, on the system’s strong growth trajectory, and its ease of integration with workplace productivity tools such as Microsoft Office. Second, he adds, Wheelabrator management pulled together a team of just under a dozen people drawn from right across the group to identify and codify best-practice ways of working. The goal was to build robust but consistent business processes that would aid operational comparisons, but which would also embody leading-edge best practice. Also required was a suitable implementation partner—a partner that knew Dynamics AX intimately, but which

was also capable of exploiting that knowledge to deliver a best-practice solution built out of standard Dynamics AX components. The search for the correct implementation partner took Wheelabrator to Columbus UK. The first implementation of Microsoft Dynamics AX within Wheelabrator duly took place within Wheelabrator’s German operations in late 2006, followed by Wheelabrator’s UK and Polish operations, which went live in January 2008. The rest of the implementation to the remaining international sites has been staggered up until 2013. “What we’re implementing is a proven system and a proven set of simple and robust best practices - and simplicity and robustness is what we like in Wheelabrator,” says Hawthorne. “The logical flow of each machine’s build matches the physical flow, with no odd offline processes artificially introduced to suit the convenience of the system.” Furthermore, it’s a development that has also smoothed the way for technology transfer throughout Wheelabrator. Simply put, notes Hawthorne, Dynamics AX is acting as a communication conduit within the business, helping to share and distribute best practice and intellectual property. “We now have 10 countries and 14 legal entities working on the same system, as a single instance running on a single database, hosted out of Denmark,” he sums up. “And when we compare things between them, we know that we’re comparing like with like, and that we’re looking at ‘one version of the truth’. It’s a single way of working, right across the business - globally.” FURTHER READING: Read more about Wheelabrator’s international ERP implementation at http://bit.ly/1ruu8hU


Epicor

Pump up your IT power

IT in Manufacturing

Hayward Tyler has been designing and manufacturing pumps and electric motors since 1815. Its products are used throughout the world in applications including oil and gas, power generation (coal and nuclear), chemical engineering and renewable energy. The company operates from two sites in the UK and has a turnover in excess of £30M. Hayward Tyler also has manufacturing and service operations in China and the US.

One of the biggest areas that Hayward Tyler sought to improve through an upgrade to its ERP solution was its internal “on time delivery” metric. As a growing company it is critical to maintain good performance in this area, which relied on planning, scheduling and materials control to work in harmony. At the time of the systems review this metric could be as low as 20%.

Getting From Vantage to Epicor ERP

When pump manufacturer Hayward Tyler looked to move its business model forward, it knew it needed its ERP system to lead the way.

A

s a company with nearly 200 years of experience under its belt, Hayward Tyler is no stranger to the need to evolve to meet the needs of changing markets and industrial technologies. It was one such restructure that drove the company to take the opportunity to review the business systems software market, and see whether it was time to upgrade the Vantage system it had been using since 2000 in the UK. “Vantage had served us well, but we had always used it out-of-the box and not regularly looked at how advances in software technology and manufacturing practices might benefit Hayward Tyler,” said Keith Herring, head of IT. “We suspected that changes to the features of ERP software, as well the wider acceptance of technologies such as service oriented architecture could help us move the business forward.”

74 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

Before starting its market review process, Hayward Tyler formed a project team with every department touched by Vantage represented. The team reviewed software vendors against its goals of a more efficient manufacturing process and more modern architecture, before eventually selecting the latest version of Epicor ERP. “This was a business project, not an IT project,” Herring said. “It was important to get everybody on board, so that all departments were invested in making it work.” Once the software was selected and initial training had taken place on the Epicor system, the project team moved on to the task of mapping all its existing business processes and reviewing how they would work in the new software. During this time Hayward Tyler also unified the financial structure of its Luton plant, which though one site, was split into four limited companies. Data was extracted, cleansed and deduplicated by Hayward Tyler’s implementation partner, Dot Net IT, producing a final database of 5GB, a reduction of two thirds. The new lean 5Gb database was transferred onto Epicor using the Epicor Data Migration Tool (DMT), before final testing over the go live weekend.

More efficient and more to come

Previously with Vantage, Hayward Tyler had no access to the advanced planning and scheduling or material control features of Epicor ERP. The use of these features has seen Hayward Tyler improve its on time delivery metric, from 20% to an average of 70% in the first year on Epicor ERP, and now it consistently hits 90%.


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The conference will provide delegates with examples of the latest innovations being utilised at manufacturing plants and how they are being employed to deliver exciting new products as well as efficiency and quality improvements. The event will have a strong focus on case study examples of companies using the latest technologies with topics to include design, automation, data, software, facility design, processing technologies, materials and more. Attendees will be able to identify how to begin implementing similar tools for innovation within their company.

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Perkins in practice

LAST WORD

Far too many reports have been left to gather dust on shelves or clutter up inbox capacity before being eventually chucked away or deleted, half read if the author is lucky

Perkins in practice Join the coalition of the willing!

“I

don’t think there was a golden age [for skills],” says Professor John Perkins as we discuss the setting for his highly acclaimed report on engineering skills in the UK. “When people ask me how bad the skills challenge facing industry is today I’m fond of citing a 19th century report which talks about the shortage of technically skilled workers. Our challenges are not new – nor are they constrained to the UK.” But, he adds “hopefully there will be a golden age in the future.” Prof Perkins’ report, published in November last year was welcomed as a thorough and systematic exploration of industry skills gaps in the UK and the initiatives in place to bridge them. Addressing both academic and vocational pathways it delved into the reasons for the shortfalls in technical ability and inspiration that are, every day, acknowledged as barriers to greater industrial competitiveness for Britain. If you’ve not read the report, at least in part, I can highly recommend it as a way to while away a train journey or

76 www.themanufacturer.com | May 2014 | Issue 4| Volume 17

a length of unplanned down time while you wait for those treasured engineers to come and get your factory back on its feet. It’s teeming with recognition for the best of British schemes to support manufacturing and engineering skills growth, as well as recommendations for ways in which these could be improved, aligned, consolidated and generally made more visible and powerful. For me, one of the key recognitions made in the report is around the importance of teachers in the process of inspiring the future industrial workforce. But what use is this kind of insight if it is left in the realms of theory? Far too many reports – many with valuable content – have been left to gather dust on shelves or clutter up inbox capacity before being eventually chucked away or deleted, half read if the author is lucky. Not so for Perkins who says he is pleased with the response the report had on publication, but is even more gratified by the work now emerging from it. So far, four task and finish groups have been formed to take responsibility

for certain collections of recommendations in the report. These groups address industrial engagement with schools – including teachers – further education institutions, universities, and post graduate education. They are headed up respectively by: Steve Holliday, CEO of National Grid; Carol Burke, MD Unipart Manufacturing; Julia King, vice chancellor of Aston University and Helen Atkinson at the University of Leicester. In addition, Engineering UK, the organisation behind Tomorrow’s Engineers – which was strongly commended as a force for good in industry-education communication by Perkins – has just published research by Boston Consulting Group into what is really needed to support a national roll out of its initiative. A “one year on” progress report to be published in November this year will compile news of all these doings, assures Perkins. This report will encourage government to continue with the many “sensible schemes” it has put in place to help grow strong industrial skills in the UK, says Perkins, but it will also attempt to chorale more, coordinated industry support. For while government has “tremendous convening power and responsibility for some aspects of the supply system,” Perkins is clear that unless industry and its professional bodies work alongside and feed into that supply system, there is no chance of making a difference to the long term skills pool for UK industry. “It’s about marshalling a coalition of the willing,” Perkins concludes. It sounds simple enough. There are so many manufacturers and supporting bodies who regularly exhibit passion and conviction in the battle to inspire and attract young talent into the sector. The key question is – are those champions of industry aware of the concurrent work of their peers and colleagues locally and across the country. And even more importantly, are they willing to join forces to ensure that every school, college and university receives a positive and consistent message about the opportunities on offer in their sector? A longer version of this article is available at: http://bit.ly/1fFSwYx


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The Manufacturer May 2014  

What exactly is industry 4.0 and which manufacturers are already embracing what is being touted as the next industrial revolution? TM invest...