MX Report 2014
Partners
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INTRODUCTION
Welcome
M
anufacturing has risen up the
political agenda of late. Not too
long ago, the country's makers
were seen by those in power as the poor
relation to the services sector. That has
changed. Now our leaders are often seen
taking part in guided tours around yet
another high-tech production facility.
This is to be welcomed, as there is an
urgent need to rebalance our economy.
The government’s policy to support
manufacturing and encourage exporting,
thus growing the economy other than by
increasing consumer debt, is a step in the
right direction. Much, however, remains to
be done in terms of reducing the balance
of payments and budget deficits and also
resolving the low level of productivity.
We have seen with the companies that
have engaged with the Manufacturing
Excellence Awards that they have
achieved productivity levels that allow
them to be competitive in world markets.
But reference to the statistics shows that
productivity in UK industry in general is
showing alarming declining trends.
The reason for this low productivity
when compared to our competitors,
such as the US and Germany, is readily
explained: inadequate investment
in training people and in plant and
machinery. The UK is the world’s 8th
leading manufacturer and yet its position
in the investment tables is 16th. How
long can the country maintain its present
position as a manufacturing nation
when in absolute terms it is investing in
productive and flexible modern machinery
at a lower level than Mexico and Turkey?
In Germany apprentices make up nearly
5% of the workforce in comparison to the
UK with below 1%. Less than 20% of UK
enterprises offer apprenticeships. The
average duration of a UK apprenticeship
is one year and in Germany, three. The
consequences of this are profound.
Investment in people, equipment and
plants ensures competitiveness. It leads
to greater productivity and helps reduce
costs. It leads to less maintenance and
down time. Robotics and automation can
lead to more flexible production capacity
and improved quality, while enabling
companies to respond quicker to changes
in market demand. And it brings an ability
to introduce new products and processes
in a more effective manner.
Working with the finance sector, we
have to recognise that in order to create
wealth it is first necessary to invest. The
current low interest rates and imaginative
asset-based finance schemes should
facilitate this. We need to improve skills
in capital investment appraisal and set
more realistic hurdle rates for the financial
returns. In this way manufacturing will
continue to grow and the economy of the
country will be further improved.
Many of the Manufacturing Excellence
Award Winners and finalists contained
in this report understand the need for
greater investment. These companies
are continuously striving to improve their
operational performance. They are playing
a vital role in helping to change the face of
modern manufacturing.
On behalf of the
Institution of Mechanical
Engineers, I would like to
congratulate the winners
and the finalists for their
sterling efforts.
Christopher Simpson
Manufacturing Excellence chairman
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FOREWORD
Rt Hon Matthew
Hancock MP
minister for business
and enterprise
Professor Lord Kumar
Bhattacharyya
founder and chairman
of WMG
I
A
“Manufacturing is crucial to
Britain's prosperity”
“One in six people working in
manufacturing has a degree”
t is my great pleasure to welcome the Institution of Mechanical
Engineers’ Manufacturing Excellence (MX) Awards to WMG
and the University of Warwick.
Unrivalled in prestige and rigour, the MX awards are the premier
honours for British manufacturing. WMG has been associated with
the awards since their inception, and it is a special pleasure to
introduce the programme as WMG and Warwick host the awards
this year.
Manufacturing has never been more important in Britain, with
the sector leading our recovery from protracted recession. At long
last, the UK’s impressive engineering heritage and the importance
of great companies like JLR, JCB, GKN, and Rolls-Royce is being
recognised by politicians and the media. At the same time, there is
growing public awareness of the need to back our manufacturing
SME sector to deliver future economic growth.
There is much to do to convert this recognition into action,
but it is welcome that successful manufacturing, large or small,
established or new, is finally understood to be crucial to prosperity
in Britain.
To support that success, WMG is committed to educating the
next generation of manufacturing leaders and entrepreneurs, while
our applied research programme is helping hundreds of innovative
British companies create new products and processes – a source of
pride for all of us.
I know you will have an enjoyable evening of socialising and
networking. My congratulations go to all the nominees; to have
made the finals shows that you are a company of distinction and
great potential. For the winners, enjoy your accolade: an MX award
is the pinnacle of industry achievement.
s the minister with responsibility for manufacturing, it gives
me great pleasure to be associated with these awards. It
is vitally important that we recognise the achievements of
our engineers and manufacturers.
The UK remains one of the world’s leading manufacturing
nations. We produce more goods today than we did in the
1980s, and manufacturing provides work for 2.6 million people in
increasingly highly skilled jobs. Around one in six people working
in manufacturing has a degree – almost double the proportion 20
years ago. It remains crucial to our economic well-being and the
government is committed to strengthening our manufacturing base.
We are backing manufacturers with advice through the
Manufacturing Advisory Service and providing support to help
firms bring production back from overseas and strengthen
their domestic supply chains through Reshore UK and the
Advanced Manufacturing Supply Chain Initiative. Through our
industrial strategy, we are creating a pro-business environment
that encourages companies to locate their manufacturing in the UK.
Meanwhile, our investments in skills, innovation and supply chain
excellence are helping to ensure a new generation of goods are
designed, engineered and “Made in Britain”.
By getting the fundamentals of our economy right and
maximising our competitiveness we can help enable a renaissance
in manufacturing and create highly-skilled jobs.
But government alone cannot create the right conditions for
economic success. It will be built in factories that can emulate the
same ambition, innovation and drive for excellence shown by the
MX finalists. I congratulate them on their success and thank the
Institution for championing engineering and manufacturing.
www.imeche.org/manufacturingexcellence 01
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WInners in detail
Winners 2014
I
t's been an
exciting time for
the Manufacturing
Excellence Awards
with the development,
in conjunction with Sir
Mike Gregory and his
colleagues at the Institute
for Manufacturing in
Cambridge, of an advanced
online self-assessment
system and re-launch of the
MX programme.
The aim has been to
retain the rigour of the MX
process and the benefits of
the benchmarking reports
– all free of charge – while
lowering the barriers to
entry. All of this would not
have been possible without
the support of our partners
and sponsors to whom we
thank. In particular I wish to
thank Lord Bhattacharyya
for his long-standing support
and generosity this year
in hosting the MX Awards
Dinner at WMG.
Another important
development has been the
agreement reached with
the Manufacturing Advisory
Service and our other
partners, Lombard, NatWest
and Grant Thornton to
operate a wide ranging
joint programme of events,
seminars and workshops
as part of our overall
commitment to support
manufacturing in the UK.
The support of the
Department for Business,
Innovation and Skills is also
much valued.
This is an opportunity
to thank all the companies
which have engaged with
MX this year. Whether it is
companies that have used
the assessment process as
a tool to generate further
improvement, those that
decided to enter for the
awards, the 2014 finalists,
or those that have received
awards – all are winners.
For our colleagues in
Germany, it is a year of great
satisfaction and celebration.
In November they will be
holding in Berlin their 10th
MX Awards Ceremony. It is
with pleasure that I recall
the initial talks that took
place at WMG and led to the
foundation and subsequent
success of MX Germany and
to the cooperation between
WMG and the Technical
“We hope to
make further
announcements
regarding new
initiatives in the
near future”
University of Berlin.
For the first time we
are offering the MX
Award winners in the UK
free places on a study
tour to Germany, which
will include visits to the
German MX overall award
winning companies from
the past three years. We
will also be accompanied
by representatives from our
partners and sponsors.
We are making
significant progress,
but much remains to be
accomplished, and we hope
to be in a position to make
further announcements
regarding new initiatives in
the near future.
My thanks go to the
MX Executive for their
dedication and support.
Finally, in these continuing
challenging times, I wish all
of you continued success.
Christopher Simpson
Manufacturing Excellence chairman
 Department for Business, Innovation and Skills Award for Overall
Winner  Cummins Inc.
02 www.imeche.org/manufacturingexcellence
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WInners in detail
 Lombard Award for Best SME
 Mech-Tool Engineering Ltd
 AESSEAL Award for Customer
 NatWest Award for Business
Development and Change Management Focus
 Elster Water Metering Ltd
 Building Adhesives Ltd
 Grant Thornton Award for
Financial Management
 ZF Lemforder UK Ltd
 Renishaw Award for Innovation in
Products and Processes
 Altro
 WMG Award for Logistics and
Operational Efficiency
 Marshall Aerospace and Defence
 The ERA Foundation Award for
Partnership with Education
 Selex ES Ltd
 Manufacturing Advisory Service
Award for People Effectiveness
 Loadhog Ltd
 Hexagon Metrology Award for
Sustainable Manufacturing
 Brother Industries (UK) Ltd
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WInners in detail
 Department for Business, Innovation and Skills Award for Overall Winner
Cummins Inc.
WINNER
D
iesel engine maker
Cummins was the clear
standout company in
this year's Manufacturing
Excellence competition, having won
through as a finalist in no less than
six of the individual categories. The
Darlington-based company recorded
high scores in customer focus,
innovation, people effectiveness,
business development and
change management, sustainable
manufacturing, and for its partnerships
with education. The judges felt that the
company had very strong core values
that underpinned the activities of its
staff across the business – from design,
through to production and aftersales.
Cummins is part of a global group,
with its base in the US. The Darlington
site employs about 750 people, while
the wider group employs about 48,000.
You might think the UK facility is a
small cog in a big wheel – but you'd
be wrong. The UK arm of the business
punches well above its weight,
providing best-practice guidance to
larger Cummins production units who
have emulated its successful ways.
Nine out of ten of Cummins'
customers make their own ranges of
diesel engines. They employ Cummins
when they are looking for specific
innovation or performance. That
means product development within the
company has to be very strong.
The Darlington facility has forged
close links with Newcastle University
to become experts in the testing of
diesel emissions for new European
environmental legislation.
That knowledge has informed major
engine development activities across
the wider group.
A key strength in product innovation
at Cummins has been its ability to
improve its business.
The judges noted that there were
several initiatives and investment
decisions taken at the plant to improve
the quality of its output. This process
was backed by Six Sigma projects
that ensured an investment case was
in place for each decision. Indeed, it
was estimated that Six Sigma process
improvement projects have delivered
“Cummins puts a lot of time and effort into
identifying what the market needs”
savings worth more than £40 million
at the Darlington site over the past
12 years. Investments were decided
locally, and supported by Cummins
headquarters in the US.
Customer focus was also clearly
high on Cummins' agenda. It holds
regular customer reviews to ensure it
is delivering on its promises. This feeds
into a 'net promoter score' whereby
Cummins uses contented customers
as advocates for its capabilities.
It puts a lot of effort into identifying
what the market needs, and has
managed to reduce lead times
so that it can act quicker to
meet such demands.
Cummins also scored
very highly in the area of
people effectiveness. The
company is committed to its
apprenticeship and graduate
schemes, and there was clear
evidence of promotion from
within. Cummins makes very good
The company also
scored very highly in
the area of people
effectiveness
use of its size and global footprint to
rotate individuals around its plants and
to provide employees with relevant
experience and career opportunities.
There was a clear and well-defined
development programme for young
engineers.
Partnership with education was also
evident. Cummins' employees proved
passionate about linking up with
schools, promoting engineering as a
career from a young age.
There are several local initiatives
in place, including placements
and competitions.
The Manufacturing
Excellence judges felt
that Cummins was an
outstanding company with
several examples of world
class manufacturing in
place. They were delighted
to select it as the overall
winner of Manufacturing
Excellence 2014.
www.imeche.org/manufacturingexcellence 05
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12/08/2014 12:53
WInners in detail
 Lombard Award for Best SME
Mech-Tool Engineering Ltd
Subsea Technologies Ltd
T
en years ago, Darlingtonbased Mech-Tool
Engineering employed 90
people and turned over
£7.5 million. Now it has 270 employees
and puts £30 million through its
books. Clearly the company is doing
something right.
Indeed, Mech-Tool can be seen
as the perfect embodiment of an
agile, free-thinking SME. It started
off making blast and fire resistant
cladding, before expanding its range
to offer complete solutions such as
accommodation modules for oil rigs
and other structures. The company
was quick to spot that its customers
wanted larger, more integrated product
solutions, so it acquired a quayside
site in Middlesbrough which meant it
could load equipment straight on to
ships and thus avoid restrictions of size
that would apply if it had to transport
by road.
Recently, it won an order for a
WINNER
HIGHLY COMMENDED
module weighing 140 tonnes to be
designed to be resistant to a 4
bar external blast pressure,
as well as fire resistant for
120 minutes. Mech-Tool
has also developed its
consultancy services, now
advising larger companies
around the world.
In a classic 'coals to
Newcastle' scenario, MechTool has even established
a manufacturing unit in South
Korea, located close to the main
shipyards, where most oil and gas rigs
are now made. Design work is carried
out in the UK, but the manufacture of
structures for the Far Eastern market is
done locally to simplify logistics. MechTool employs a quality management
system across all its facilities to ensure
that standards remain high, no matter
where its products are made.
The company has grown
significantly over the last few years
Mech-Tool employs a
quality management
system across all
its facilities to ensure
standards remain
high no matter
where its products
are made
“The judges thought Mech-Tool Engineering
was a far-sighted, well-run and ambitious
organisation and therefore a worthy winner”
and is forecast to grow further.
Opportunities exist for the
supply of full turnkey modular
buildings, while regional
expansion is expected in
fast-developing countries
such as Kazakhstan.
Thought has also been
given to staff retention, with
improvements made to the
working environment at both
its Darlington and Middlesbrough
sites. An apprentice scheme has
been set up to ensure that new talent
enters the organisation, while a sum
equivalent to 25% of profit before tax
goes back to staff through bonuses.
Mech-Tool has also formed links
with Teesside University to build
an integrated system for managing
information to support the continued
development of the business. MechTool management thinks the system
could enable them to gain a better
understanding of their manufacturing
processes, as well as providing much
better cost data to prepare bids.
The Manufacturing Excellence
judges thought Mech-Tool was a
far-sighted, well-run and ambitious
organisation, and therefore a worthy
winner of the Lombard Award for Best
SME of Manufacturing Excellence.
There was also a highly commended
award in this part of the competition.
The judges thought Aberdeenbased Subsea Technologies was
a highly innovative company that
had developed some really exciting
products for tailored well control, well
intervention and subsea control system
applications.
Finalists
 Graphic Plc
Printed circuit board manufacturer
whose 'first-to-market' product
ethos had seen it win business on
time-critical specialist programmes
in the military sector.
 Tharsus Group
Innovative north-east company
that excels at providing an
original equipment design and
manufacture service.
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WInners in detail
 NatWest Award for Business Development and Change Management
Building Adhesives Ltd
WINNER
“It completed an
exercise with a
sister company
to identify best
practice and
apply it in both
businesses”
T
iling adhesives
manufacturer Building
Adhesives has been a
long-time advocate of
Manufacturing Excellence, using
the entry process as a means
of benchmarking its business
and underpinning its operational
improvement. The company attaches
huge importance to moving forward
and getting better at what it does,
something that resonated with the
judges who were impressed by
what it has achieved over the past
couple of years.
Headline improvements are there
for all to see. Building Adhesives
has invested in its IT infrastructure,
integrating its Scada system with
SAP through a new manufacturing
execution system that has delivered
more control over operational aspects
such as materials supply, thus
improving traceability. Continuous
improvement has been adopted
throughout the business, notably
through the implementation of a new
management tool.
The company has limited access
to performance data of competitor
companies. However, it recently
completed an exercise with a sister
company to identify best practice and
apply it in both businesses. Building
Adhesives has worked with the British
Safety Council and taken part in its
5-star accreditation schemes for both
Health and Safety and Environmental
performance. It has also taken part in
the Times top 100 survey, principally
as a means of identifying opportunities
for continuous improvement within
aspects of its employee management.
Investment has been made
in robotics and automation at
the company's Stoke-on-Trent
headquarters, improving product flowthrough and reducing waste. There is
an inevitable amount of manual picking
and packing of tile adhesives, but
thought has been given into how to
make this a more efficient process.
New product development has
been a central part of the company's
strategy over the past couple of years.
This has involved regular reviews of its
Building Adhesives
attaches huge
importance to getting
better at what it does
product range to address any gaps
in its portfolio. There were no new
product launches in 2012. But last
year, the company launched several
new products, which resulted in
additional sales worth several million
pounds, and accounting for 12% of
turnover in the financial year.
Building Adhesives worked hard to
gain a better understanding of what
its unique selling points were in the
marketplace, with focus groups having
proved an especially fruitful way of
identifying product requirements. For
instance, Building Adhesives is looking
to make the most of high customer
recognition of its Dunlop brand, which
targets performance and quality over
price and moves it away from being a
'me-too' tiling supplier. Regular new
product reviews are held at set periods
after launch to ensure that market
requirements are being met.
Overall, Manufacturing Excellence
judges thought Building Adhesives
had taken large strides forward. The
company was therefore deemed a
worthy winner of the NatWest Award
for Business Development and Change
Management.
Finalists
 Cummins Inc.
The Darlington unit represents a
relatively small part of a big global
operation, yet it was delivering a
much bigger percentage of profit
than its size might suggest.
 ZF Lemforder UK Ltd
Has experienced 50% growth over
the past few years, without any
detrimental impact on operational
performance and product quality.
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At AESSEAL® we pride ourselves on
exceeding customer expectations.
AESSEAL® specialises in the manufacture of innovative reliable sealing
products. Through continuous investment, unique modular technology
and an unparalleled dedication to customer service the company
sets new standards in reliability, performance, service and cost.
AESSEAL plc is proud to support the IMechE
www.aesseal.com
WInners in detail
 AESSEAL Award for Customer Focus
Elster Water Metering Ltd
Tek-Tanks Ltd
WINNER
HIGHLY COMMENDED
W
hen you supply your
products to the water
utilities, the narrow
nature of the market
means you have a very limited number
of customers with which to deal. So it
is crucial that you treat them right.
Elster Water Metering knows this
only too well. It provides its water
metering products to just 12 water
utilities, albeit in very high volumes. It
knows that it has to go the extra mile
to ensure that each of its customers is
happy with the products and services
it provides.
Customer focus, therefore, is at the
heart of what it does. The company
puts intense effort into building and
maintaining relationships, with each
customer having their own specified
point of contact. It has worked hard
over the past couple of years to
sharpen up its customer account
“Elster has
worked hard
recently to
sharpen up
its customer
account
management”
management and has introduced a
comprehensive after-sales package.
The company has also changed
its marketing strategy with customer
focus in mind. Whereas previously it
used to show its products at numerous
exhibitions around the UK, more
recently it has preferred to
take a more targeted
approach, inviting
prospective
customers to its
facility for oneto-one tours and
briefings.
Elster's
manufacturing
unit, internal sales
team, global design
and development
centre and product
management team are all based at its
facility in Luton, Bedfordshire, meaning
large volume contracts can be handled
in an efficient manner.
Elster regularly carries out customer
service surveys, which in many cases
has led to process improvements on
the shop floor.
Product innovation is also keeping
customers happy. This is carried out
with two-way interaction, feeding into
the design process. Elster uses a
phased gateway process to introduce
new products, and involves customers
at each step to ensure the company is
fully meeting their needs.
Finally, operational effectiveness
has also been improved. The
company has embraced
lean thinking and has
encouraged a culture
of openness
and sharing,
leading to new
manufacturing
methods.
The judges
were impressed by
how much time and
effort Elster devotes
to putting customers
Elster regularly
carries out
customer service
surveys which
has led to process
improvements on
the shopfloor
first. They therefore felt it was a worthy
winner of the AESSEAL Award for
Customer Focus.
This category saw Tek-Tanks highly
commended. The Hampshire-based
supplier of plastic tanks and associated
equipment for boats, vehicles, buildings
and other applications has been
punching above its weight by being
truly responsive to customers' needs,
recording an incredible 98% customer
satisfaction rating.
Finalists
 Building Adhesives Ltd
Tiling adhesive firm with a multi-channelled support
package to the trade which means it doesn't have to
compete on price alone.
 Cummins Inc.
Darlington-based diesel engine maker has a flexible
approach to managing customer relations on a global
basis.
 Meggitt Polymers & Composites
Its products are used in safety-critical situations, so
customer management is rigorous and detailed.
 ZF Lemforder UK Ltd
Built up superb relationship with its primary customer,
Jaguar Land Rover, which has seen it move from an
automotive parts to a systems supplier.
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Manufacturing
insight
No matter what you produce, you want access to
people with the best ideas and critical thinking that
will enable you to grow – strategically, operationally
and, ultimately, financially at home and abroad.
At Grant Thornton, our global network of more than
38,000 people allows us to advise our clients with
global and local insights. Our advisers take the time to
understand our client’s individual circumstances and
we provide a wider point of view and operate in a way
that’s as fast and agile as our clients.
What’s more, our established relationship with
the Institute of Mechanical Engineers showcases
our commitment to the vital and growing British
manufacturing industry and businesses like yours.
For further information on our global and local insights, contact:
Neil Barrell
Partner
T +44 (0)117 3057 616
E [email protected]
grant-thornton.co.uk
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GRT100078_MX Awards Advertisment_v01.indd 1
02/09/2014 15:12:17
WInners in detail
 Grant Thornton Award for Financial Management
ZF Lemforder UK Ltd
WINNER
“At all times
ZF Lemforder
management
has kept an eye
on predefined
rates of return
for investments
made”
Z
F Lemforder UK has grown
to become a trusted
supplier of corner units
on a just-in-sequence
basis for Land Rover vehicles. Orders
are received electronically as bodies
leave Land Rover's paint shop at its
Solihull plant, and the required corner
assemblies are built and shipped to be
fitted on the appropriate vehicle just
six hours later. That sort of flexibility
and demand response has required
ZF Lemforder to invest heavily at its
main facility, on a site adjacent to Land
Rover's plant.
Indeed, production lines
have been expanded several
times in recent years, as ZF
Lemforder has responded
to its customers'
needs. At all times,
management at the
company has kept a keen
eye on the importance of
predefined rates of return
for all investments made.
Guidelines for evaluating
investment applications are set by
Production lines
have been expanded
several times in
recent years as the
company responded
to customer needs
the corporate finance department with
a minimum target of 14% return on
capital employed to be achieved. So
far, investments that have been made
have all exceeded their targets, which
can be demonstrated from the annual
performance of the plant.
Financial prudence is always at
the forefront of what ZF Lemforder
does. Its management team regularly
considers the impact of product
developments and process innovations
on its capital investment plans. It
has a policy of carrying out post
investment audits for all significant
investments. Financial risks are
carefully considered, with
mitigation plans in place.
ZF Lemforder also
understands the
importance of having
clearly stated cash
targets. Cash projections
are published regularly and
distributed to all relevant
employees.
Daily cash flow reports
detailing bank balances, cash that
has been received from the customer,
future cash in the month that is due
and cash that is planned to be paid
out, are all highlighted. Forward rolling
cash flow forecasting is used to give
clear financial visibility.
Cash employed is also a key
performance indicator. A large driver for
this result is inventory levels. Inventory
is planned and managed very tightly,
with an SAP system supporting this
process. Stock turns are therefore well
within benchmarked levels within the
ZF group.
It helps that ZF Lemforder only
has one customer. A two-way
relationship based on respect has been
engendered. This means ZF Lemforder
has been able to manage its payment
schedules, with late payments over 10
days accounting for less than 0.1%.
Later this year, ZF Lemforder is to
construct another production facility
that will meet expanded demand from
the Jaguar Land Rover group. The cost
of the facility will be £4 million, which
has been paid upfront.
The judges felt that ZF Lemforder
was the embodiment of financial
prudence and best practice, and
that its processes had significantly
underpinned its expansion activities.
ZF Lemforder was therefore selected
as the winner of the Grant Thornton
Award for Financial Management.
Finalist
 Meggitt Polymers &
Composites
Judges noted Meggitt's very
thorough integrated financial
management system.
www.imeche.org/manufacturingexcellence 13
p12-13.MX AWARDS.ZFLemforder.indd 13
18/09/2014 11:20
Make a difference
From 3D printing to the frontiers of medical science our people and products
make a difference
Renishaw plc is a FTSE 250 listed UK company which employs 3,500 people in 32 countries. We develop and manufacture
world class engineering and science based products using our core skills in measurement, motion control, spectroscopy and
precision machining.
Today we are involved with ever more exciting areas of technology, including surgical robots that help neurosurgeons to perform
complex brain surgery and additive manufacturing machines that ‘print’ metal parts.
To find out more about our work visit www.renishaw.com
Renishaw plc New Mills, Wotton-under-Edge, Gloucestershire GL12 8JR
T +44 (0)1453 524524 F +44 (0)1453 524901 E [email protected]
www.renishaw.com
Renishaw advert for MX awards 0814.indd 1
9/2/2014 1:28:01 PM
WInners in detail
 Renishaw Award for Innovation in Products and Processes
Altro
WINNER
A
ltro specialises in the
manufacture and supply
of safety flooring and
wall cladding materials. If
you thought that it operated in a rather
conservative market with little room for
product innovation, you'd be wrong.
Altro innovates like crazy, aiming to
be first to market with new products
that break new ground. This allows it to
stay ahead of the competition.
One good example of this is Aquarius
– a non-slip floor covering that is
suitable for areas where both bare feet
and shoes are used, such as shower
rooms and adjacent changing rooms.
Sales of Aquarius have gone through
the roof, because it meets a real market
demand. It is currently Altro's most
successful product launch.
Then there's its range of flooring
that is derived purely from renewable
resources. This has tapped into the
market for sustainability and has already
proved extremely popular. Some other
truly innovative products are also being
planned. Altro is researching energy
harvesting floors with piezo-electric
devices that might one day provide
clean and green energy. And then
there's the potential of hydrophobic
plasma-treated walls, which is another
advance that is firmly on Altro's radar.
Good ideas often come from
customer involvement, and Altro
frequently arranges tours around its
facilities. The company has hosted
more than 1,000 customer visits over
the past few years, because it believes
the 'voice of the customer' is crucial
to triggering and delivering new ideas.
Innovation maps are used to guide new
ideas through to commercial viability,
with all metrics closely monitored to
provide a clear review of what's been
achieved and what's left to do.
This process also helps to weed out
ideas that aren't coming up to scratch.
Some new product developments have
been halted at feasibility stage because
aesthetics have proved disappointing,
or there have been concerns over
the supply of constituent parts. Altro
“Altro innovates like crazy,
aiming to be the first to
market with new products
that break new ground”
Altro doesn't view
failure as a bad
thing – it learns from
its mistakes and
takes that knowledge
forward
doesn't view failure as a bad thing – it
learns from its mistakes and takes
that knowledge forward into the
development of other ideas.
The judges felt that Altro was an
exemplar of how to do innovation. They
were impressed by just how much
Altro valued its customers' voice in the
creation of new products, and by how
the company managed the innovation
process. Altro was therefore deemed a
clear winner of the Renishaw Award for
Innovation in Products and Processes.
Finalists
 BAE Systems, Military Air & Information
Military jet-maker shows bold innovative spirit
across its organisation, as shown by the research
of new production techniques such as additive layer
manufacturing and cyrogenic machining.
 Building Adhesives Ltd
Tiling company uses innovation to avoid becoming a
'me-too' supplier, with a digitised 'control of innovation'
gateway to inform decisions.
 Cummins Inc.
Has forged close relationships with local universities
to ensure that its diesel engines are among the most
environmentally-friendly in the world.
www.imeche.org/manufacturingexcellence 15
p14-15.MX AWARDS.Alto.indd 15
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Shaping the Future
As one of the world’s leading research and education groups, WMG is an
international role model for how universities and industry can work together.
We can help businesses improve their competitiveness
through the application of value adding innovation,
new technologies, and skills deployment.
This may be through major research projects to provide
novel and practical solutions to industry challenges,
research testing services using cutting edge technology,
and professional development of employees from
apprentices up to senior executives.
Sectors:
▪Automotive
▪ Aerospace and Defence
▪Digital
▪Construction
▪ Energy and Utilities
▪Finance
▪ Food and Drink
▪Healthcare
▪IT
▪ Pharmaceutical
▪Rail
Visit our website or speak to our Business
Development team to find out more:
W go.warwick.ac.uk/wmg/business/support/
E [email protected]
T +44 (0)24 7657 5935
17368_WMG_MXmagazineAdvert-A4.indd 1
03/09/2014 12:54
WInners in detail
 WMG Award for Logistics and Operational Efficiency
Marshall Aerospace and
Defence Group
WINNER
O
n 23 April 2013, a
severe hailstorm hit
Kandahar Airfield in
Afghanistan causing
significant damage to five UK RAF
Hercules C-130J aircraft. The storm
was ferocious, with gigantic ice
accumulations causing more than
2,000 strikes per airframe. The
aircraft ailerons were particularly badly
affected, suffering pronounced dents.
The fleet was grounded, and
an urgent operational requirement
was raised. That's where Marshall
Aerospace and Defence swung into
action, working with the original
airframe manufacturer, Lockheed
Martin, and the Ministry of Defence to
undertake an extreme weather damage
recovery project called Operation
Weatherman. The work enabled the
damaged ailerons to be replaced
onsite in Kandahar and for one aircraft
to return to operational duties within
just eight weeks of the hailstorm.
The ailerons of the other four aircraft
were likewise repaired onsite, and
the C-130s were flown back to the
UK where Marshall took on
the responsibility of
project managing
and performing
the repairs at
its Cambridge
facility.
Detailed
assessments of
each plane were
carried out. Each
individual panel
showing damage
was recorded and a
“There was an immediate
visual image of what
needed to be checked”
decision was made on the work to be
done. In some cases it was permitted
to retain panels in place, subject to
increased inspection frequency, but in
others they were replaced immediately.
Speed was of the essence, the planes
were needed back in action as soon
as possible, and Marshall had to work
against the clock while operating to
exacting standards.
When all the aircraft were repaired
and sent back to Afghanistan, Marshall
received a commendation from the
RAF for its work, and documentation
and systems developed for the project
proved to be of ongoing value. For
example, panels on a section of
the aircraft were colour coded on a
drawing to indicate their status with
a separate document pack for each
panel detailing the damage and the
status. There was an immediate visual
image of what needed to
be checked at different
points and easy
access to the
detail. Previously
there would have
been a single
pack of data for
a section.
Other lessons
were learned too.
Marshall realised
that in order for it
to handle a job like
The company has
outlined a £106 million
capital investment
programme at its
Cambridge facility
Operation Weatherman, its project
management skills needed to be of the
very highest order. So, subsequently
it has organised accredited project
management learning for its staff.
The project showed a requirement
for greater communication on the
shopfloor. Marshall has now instigated
daily reviews to ensure that relevant
employees are kept up to date.
The company has also outlined a
programme of capital investment at
its Cambridge facility that will cost
£106 million over the next six years.
This will include a new paint shop and
the introduction of a product lifecycle
management system.
The judges felt that Operation
Weatherman showcased Marshall as
a very professional organisation that
could deliver the highest quality work
while up against strict deadlines. It
was therefore selected as the winner
of the WMG Award for Logistics and
Operational Efficiency.
Finalists
 Building Adhesives Ltd
Tiling adhesives manufacturer has
achieved continuous improvement
across process control, product
flow and employee involvement.
 Meggitt Polymers &
Composites
Aerospace and defence supplier
improved operational performance
across the board, reducing waste
and cutting lead times.
 ZF Lemforder UK Ltd
Automotive supplier shows
outstanding attention to detail,
enabling it to ramp up capacity.
www.imeche.org/manufacturingexcellence 17
p16-17.MX AWARDS.logistics.indd 17
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PE_D01_MX ADVERT 17/09/2014 08:47 Page 1
The ERA
Foundation
“Manufacturing is the key to the UK’s
economic recovery. Our future is
dependent on gifted young people being
encouraged to commit their futures to
industry and entrepreneurship. The
ERA Foundation is therefore very
pleased to be sponsoring the
Partnership with Education Award for
Manufacturing Excellence.”
Sir Alan Rudge
CBE FREng, FRS.
President, The ERA Foundation.
WInners in detail
 The ERA Foundation Award for Partnership with Education
Selex ES Ltd
WINNER
“Selex ES knows
that it needs to
attract, engage,
develop and
retain the
brightest and
best people”
E
veryone knows that
manufacturing and
engineering has a skills
shortage. There simply
aren't enough youngsters coming
out of academia with an interest in
pursuing a career in technical sectors.
That is something that concerns
Selex ES, the Bedfordshire-based
provider of electronic and information
systems to the defence and aerospace
industry. Selex ES produces ultra hightech equipment, such as electronic
warfare and radar countermeasures. It
knows that it needs to attract, engage,
develop and retain the brightest and
best people.
Instead of bemoaning shortages, the
company is doing something about it,
employing a variety of tactics to reach
out and foster stronger links with local
schools. It has provided more
than 30 work experience
placements to
secondary/6th
form students
at its Luton site
this year, has
developed a
comprehensive
'ambassadors'
programme
to support the
dissemination of
knowledge across
the business and also offers summer
placements.
Its Rampaging Chariots educational
event – where schools are asked
to build a radio-controlled chariot
following a set of instructions – has
proved immensely popular, having
been incorporated into dozens of
science and technology lessons across
the region. The company also holds
regular information fairs at its main
site to go through with students the
sorts of exciting manufacturing and
engineering roles it has to offer.
Youngsters who choose to work at
Selex ES are provided with a strong
support network. The company has
established a popular and oversubscribed apprenticeship scheme
that supports students to HNC
and HND-level qualifications. It also
supports a number of employees
in their university degrees,
many of whom are
former apprentices
seeking further
education. Other
high-performing
individuals have
gone on to
take Masters
degrees, such as
Cranfield University's
MSc in Operations
Management.
Selex holds regular
information fairs at
its main site to go
through with students
the manufacturing and
engineering roles it
has to offer them
Selex ES also makes an effort to
support and encourage its employees
to become school governors. This
helps spread the word about the sort of
work it undertakes. It also encourages
its staff to participate with involvement
in the Big Bang UK Young Scientists &
Engineers Fair and other initiatives.
The judges felt that Selex ES
was taking an admirably proactive
approach to informing young people
about its business. And they felt that
once students had been persuaded
to join the organisation, there was a
strong support structure in place to
help them with continuing professional
development.
Selex ES was therefore chosen as
the recipient of The ERA Foundation
Award for Partnership with Education.
Finalists
 BAE Systems, Military
Air & Information
Aerospace and defence
company's educational outreach
activities has involved more than
40,000 children in one year.
 Coca-Cola Enterprises
Coca-Cola bottler employs
qualified teachers to deliver highquality learning about sustainable
manufacturing.
 Cummins Inc.
Diesel engine manufacturer has
particularly strong links with
local schools in the North East,
telling a compelling story about
manufacturing careers.
 MBDA Missile Systems
Missile maker employs a dedicated
human resources adviser for
education, overseeing effective,
multi-stranded education policy.
www.imeche.org/manufacturingexcellence 19
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18/09/2014 11:22
Proud sponsors of the 2014 Manufacturing
Excellence ‘People Effectiveness’ Award
Congratulations to all winners and finalists
The Manufacturing Advisory
Service (MAS) works to support
manufacturers based in England;
no matter what size of company
you are, we can help.
If your company is ambitious with the
drive to grow we can help you address
your business priorities and, for SMEs, we
could provide match funding for eligible
projects too.
Our Manufacturing Advisors can work
with you to:
To find out more or organise a free
and confidential evaluation from a
local Advisor visit
www.mymas.org, follow us on
Twitter @mas_works, email us
at [email protected] or
telephone
0845 658 9600
•Shape your business strategy
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capability in supply chains
•Reshore production to the UK
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WInners in detail
 Manufacturing Advisory Service Award for People Effectiveness
Loadhog Ltd
Mabey Bridge Ltd
L
oadhog might have just 60
employees, but it has some
very big ideas when it comes
to people effectiveness.
This starts with its structure.
Loadhog, which makes a range of
handling and logistics products, is an
employee-owned business and all new
recruits are required to buy shares.
This engenders a sense of belonging,
with staff working towards common
goals and aims and for the long-term
profitability of the company.
Communication is key to such a
structure. Loadhog's facility in Sheffield
is a bright and open place where staff
are encouraged to talk and interact.
High-visibility ideas boards are dotted
around the shop floor, and five-minute
meetings are held every morning
around a central 'bandstand' to set the
scene for the day ahead.
All employees are expected to take
direct responsibility for their actions.
Visual reminders promote a culture
of tidiness, with waste reduction
prominent throughout. The strong
sense of worth that the company tries
WINNER
HIGHLY COMMENDED
to foster seems to have an impact
on performance. It currently
boasts an astonishing 99.4%
attendance record.
People development
is also central to the way
Loadhog goes about its
business. It has set up a
dedicated training academy
so that staff can undergo
sustained career development.
The emphasis is on creating a
flexible workforce that can enable
the company to grow as it becomes
more successful. More than 10% of
Loadhog's workforce are apprentices,
and there is a strong willingness to
promote from within. Indeed, several
of Loadhog's management started at
the company in shopfloor positions,
before working their way up. There
is full appraisal up and down the
management chain, ensuring that staff
feel listened to and that their input is
valued.
During their visit to the Loadhog
site, Manufacturing Excellence
assessors were encouraged to walk
Staff are encouraged
to talk and interact
at the company's
Sheffield facility
around the shopfloor to meet as
many employees as possible.
They were impressed by the
confidence of the staff and
the obvious affection that
they had towards the
company. The judges
noted that Loadhog felt like
a good place to work.
The level of attention to
detail at the company was
also clear from the assessors'
visit. The Loadhog headquarters
– an old gun factory affectionately
known as 'the Hog Works' – has been
developed into a smart and modern
facility, with fresh and vibrant branding.
The judges felt that Loadhog was a
truly unique company that put people
effectiveness at the heart of everything
it did. Loadhog was therefore
selected as the clear winner of the
Manufacturing Advisory Service Award
for People Effectiveness.
This category also saw steel
bridging infrastructure provider Mabey
Bridge highly commended. This familyowned firm has a strong set of core
values, with motivated employees who
feel empowered to fully contribute to
the success of the business.
Finalists
 BAE Systems, Military
Air & Information
A company with high-quality
staff delivering hugely complex
programmes.
 Cummins Inc.
Strong network of apprenticeship
and graduate schemes, producing
well-trained employees who felt
confident to take assignments at
other Cummins' facilities around
the world.
 Selex ES Ltd
Electronic warfare and
countermeasures supplier with a
strong culture of promoting staff
from within.
“Several of Loadhog's
management started at the
company on the shop floor”
 ZF Lemforder UK Ltd
Automotive supplier has built a
hugely flexible workforce which
could respond to the demands of
its key client, Jaguar Land Rover.
www.imeche.org/manufacturingexcellence 21
p20-21.MX AWARDS.loadhog.indd 21
18/09/2014 11:22
WHERE QUALITY
COMES TOGETHER
Your single metrology partner for manufacturing,
quality control and maintenance of professional serving
in automotive, aerospace, energy and medical sectors.
Our experience is your advantage.
Contact us for more details or demo:
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WInners in detail
 Hexagon Metrology Award for Sustainable Manufacturing
Brother Industries (UK) Ltd
I
nkjet printer maker Brother
Industries (UK) has become
so adept at the recycling of
its toner cartridges that its
Japanese parent company has started
to use it as a global exemplar of remanufacturing in action.
The Wrexham-based company put
in place a free toner cartridge returns
scheme in 2005. In the first year of
operation, 80,000 cartridges were sent
back by customers. In 2013, that figure
rose to more than 1.6 million. Over
time, the percentage of components
that Brother reuses has risen to more
than 95%, meaning that it now avoids
sending any waste to landfill.
This performance hasn't gone
unnoticed. Brother's UK arm now
regularly advises the Japanese parent
company on how to 'design for life',
effectively giving more thought to how
products are put together to enable
them to be more easily taken apart.
Japanese engineers regularly come
to the UK to take guidance
on how this might
be done. On one
particular cartridge,
the ink filling
hole was being
sealed after
manufacture.
This was
a problem
when it came
to recycling, so
production methods
were changed.
“The percentage
of components
that Brother
Industries reuses
has risen to more
than 95%”
Interestingly, Brother has even
started employing academics at a local
university who specialise in psychology
to study how it might be possible to
encourage consumers to send back
even larger numbers of cartridges. The
company thinks that it can take advice
in this area and alter the way it markets
its recycling scheme to consumers,
encouraging further uptake.
Sustainability performance is
carefully managed across the business
through key performance indicators.
Brother recognises the importance
of continually improving
the sustainability of its
products, and is
currently in the
process of doing a
carbon footprint
assessment
of toner
manufacturing.
Early results show
that for certain
cartridge models,
it has reduced
associated CO2 output by
WINNER
41% through components reuse.
Sustainability
performance is carefully
Sustainability audits have looked
managed across the
at waste reduction and management,
business through key
performance indicators smarter packaging, energy use and
logistics. The audit process is managed
by a designated quality assurance
specialist whose job it is to ensure that
the company is fully compliant.
The company follows ISO standard
14001 and conducts quarterly
environmental steering group meetings
to update on progress.
Outreach is also important. Brother
oversees two employee volunteer
projects in the local area each year,
along with factory tours for local
schools to ensure that students get a
better understanding of how it goes
about its business.
The Manufacturing Excellence
judges noted the comprehensive nature
of Brother Industries' sustainability
efforts. They had no hesitation in giving
the company the Hexagon Metrology
Award for Sustainable Manufacturing.
Finalists
 Building Adhesives Ltd
Tiling adhesive manufacturer has
been successful in cutting to zero
the amount of waste it sent to
landfill.
 Cummins Inc.
Diesel engine maker has reduced
energy and water consumption,
and has introduced several
innovative recycling schemes such
as the reuse of pallets with sister
plants in the US.
www.imeche.org/manufacturingexcellence 23
p22-23.MX AWARDS.hexagon.indd 23
18/09/2014 11:23
THE JUDGES
Panel of experts
Dr David Clark is chair, MX Final
Judging and executive secretary of
the ERA Foundation. He completed
his BSc and PhD at Victoria University
of Wellington in New Zealand and
moved to the UK in 1974 to join the
Mullard Space Science Laboratory and
then to the Science and Engineering
Research Council in 1977, first at the
Royal Greenwich Observatory, and
then as head of space astronomy at
the Rutherford Appleton Laboratory. In
1985 he was transferred to the head
office of SERC in Swindon, and became
deputy director programmes. With the
formation of Engineering and Physical
Sciences Research Council in 1994 he
was appointed director planning and
communications, and subsequently
director research and innovation.
Christopher Simpson, MX
chairman, is managing director of
Simpson Associates, an international
engineering consultancy on project
management, strategy, acquisitions,
performance improvement and further
business development. He has held
directorships with major corporations
in the UK and Germany and has wide
experience of working in the US and
Europe. In addition to his direct business
activities, Christopher is a member
of the board of MX Germany, past
chairman and current board member
of the Manufacturing Industries Division
and of the Management Group at the
Institution of Mechanical Engineers.
Neil Barrell leads the Operations
division of Grant Thornton’s Business
Consulting department, advising
companies on operational, commercial,
financial and strategic issues. He has
acted as lead adviser to a number of
global corporates, including automotive
OEM and Tier 1 companies and FTSE
businesses. Before Grant Thornton, he
held senior positions at a number of
businesses within the automotive and
manufacturing sectors and spent eight
years as a managing director.
In his role as the Midlands
manufacturing lead, Rupert
Boddington offers 30 years of
banking experience with NatWest
& RBS, supporting manufacturing
customers. He has experience working
across the supply chain – with clients
from OEMs to Tier 1s. He has strong
relationships across many sub sectors
and has recently worked with clients
in automotive and aerospace. Rupert
is part of a national team developing a
deeper understanding of the needs and
concerns of manufacturing businesses,
to enable the bank to help the industry
tackle the financial challenges it will face
going forward.
Gordon Bridge has worked at three
Sheffield manufacturers – Tempered
Spring (Automotive) as commercial
director, Richardson Sheffield (Knives)
as managing director and AES
Engineering (Mechanical Seals and
Engineered Systems) as chief executive
from 1995 to 2010. He is now working
part-time at AES but remains on the
board. He was on the CBI’s Regional
Council and a member of the Council
of the University of Sheffield, chairing
its Careers Advisory Board. He is a
board member of the city's University
Technical College and holds an
honorary degree from the university.
As a sales director on Lombard’s
Leadership board, Stuart Clark
has more than 18 years of asset
finance experience, providing funding
to the UK’s SMEs and corporates.
This has given him a vast amount of
knowledge across many industries
and types of assets. It has allowed
him to support numerous companies
to secure the funding they need for
their businesses. With his experience
in asset management and operating
lease facilities as well as hire purchase
and finance lease, and Lombard’s
commitment to the manufacturing
sector, Stuart encourages his London
& South East Territory team to seek out
opportunities to support manufacturers.
Professor Janet Godsell is an
expert in business development and
change management, understanding
the links between product, marketing
and supply chain strategy to develop
a congruent business strategy that
delivers sustainable competitive
advantage. For the past 14 years at
WMG in Warwick, her research has
focused on customer responsive supply
chain strategy - the way in which an
organisation understands customer
value and develops a supply chain
strategy to deliver the required customer
value at the lowest cost. She has
also been instrumental in developing
framework agreements between
industry and academia, to identify and
resolve complex business issues that
the company cannot solve alone.
Tony Harper is head of Research
and Advanced Systems Engineering
for Jaguar and Land Rover. He joined
Jaguar in 1986 after an honours degree
in Aeronautical Engineering at Imperial
College London. He spent his early
career at Jaguar developing airbags and
active chassis systems at a time when
such technologies were in their infancy.
In the late 1990s, Tony was appointed
head of the Jaguar Vehicle Engineering
team responsible for concept design,
packaging, aerodynamics and vehicle
Computer Aided Engineering. After
a secondment to Ford's European
Operations to develop synergies
between Ford, Volvo, Jaguar and
Land Rover, he returned to the now
combined Jaguar Land Rover Product
Development Operations to head up the
Research and Advanced group in 2006.
Lee Hibbert is a business-tobusiness journalist with more than
20 years' experience. He is currently
editor of Professional Engineering
magazine, a monthly publication that is
circulated to around 100,000 qualified
engineers. Lee's areas of speciality
include defence, aerospace, railways
and manufacturing. In addition to
editorial skills, Lee excels at project
management, having conceived and
delivered new publications and events
related to advanced manufacturing.
Chris Pockett joined global
engineering business Renishaw as
a sponsored student, before gaining
a business degree and a diploma
in marketing. In more than 25 years
with the company he has held a
variety of commercial roles dealing
with issues such as global branding,
the management of international
exhibitions, international marketing,
customer communications, sales
administration and distribution logistics.
Chris is also a Six Sigma Green Belt. As
Renishaw’s head of communications
his responsibilities also include brand
management, external affairs, education
liaison, social media, marketing
communications and language
services.
24 www.imeche.org/manufacturingexcellence
p24.panel of experts.indd 24
18/09/2014 11:26
MAKE YOUR
EXPERIENCE
COUNT.
Demonstrating your competence as a qualified
engineer has never been more important.
Professional registration as a member of the Institution of
Mechanical Engineers establishes your credentials as a
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Improving the world through engineering
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Westminster
London SW1H 9JJ
www.imeche.org
MX COVER-BC.FC.indd 2
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