MX Report 2014 Partners ERA foundation logo 17/09/2014 11:09 Page 1 Sponsor Supporter The ERA Foundation The ERA Foundation The ERA Foundation MX COVER-BC.FC.indd 1 18/09/2014 11:12 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 www.imeche.org/manufacturingexcellence p00-01.MX AWARDS.Inside.indd 2 18/09/2014 11:13 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 p00-01.MX AWARDS.Inside.indd 1 18/09/2014 11:13 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 p02-03.MX AWARDS.Inside.indd 2 18/09/2014 11:14 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 www.imeche.org/manufacturingexcellence 03 p02-03.MX AWARDS.Inside.indd 3 18/09/2014 11:14 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 p04-05.MX AWARDS.Cummins.indd 5 18/09/2014 11:16 funding Flexible Congratulations to all the finalists of The MX Awards. We’ve been helping businesses of every shape and size grow and grasp opportunities so that more and more businesses can be winners. Take advantage of the UK’s ongoing economic growth by using asset finance to support your business expansion. Our range of flexible funding includes a choice of purchase and leasing options and covers a wide variety of assets including IT, vehicles and machinery. Added to this is our friendly expertise, which focuses on finding the right solution for your needs. Trust us to help you achieve your business ambitions. Awards 2014 Security may be required and product fees may apply. For more information about how Lombard could help your business grow, please call 0800 028 7164. Text Relay 18001 0800 028 7164. lombard.co.uk Lines are open 9am to 5pm Monday to Friday. Lombard is part of The Royal Bank of Scotland Group. Lombard North Central PLC. Registered Office: 135 Bishopsgate, London EC2M 3UR. Registered in England No. 337004. 93037.001 MX Awards Winners Advert_297x210_aw1.indd 1 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. www.imeche.org/manufacturingexcellence 07 p06-07.MX AWARDS.Lombard.indd 3 18/09/2014 11:17 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. www.imeche.org/manufacturingexcellence 09 p08-09.MX AWARDS.BuildingAdhesive.indd 9 18/09/2014 11:19 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. www.imeche.org/manufacturingexcellence 11 p10-11.MX AWARDS.ElsterWater.indd 11 18/09/2014 11:20 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 ©2014 Grant Thornton UK LLP. All rights reserved. Grant Thornton UK LLP is a member firm within Grant Thornton International Ltd. Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by member firms. Full disclaimer available at grant-thornton.co.uk 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 18/09/2014 11:21 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 18/09/2014 11:21 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 p18-19.MX AWARDS.ERA.indd 19 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 •Access new markets/sectors •Create new products •Reduce waste •Review, strengthen and develop capability in supply chains •Reshore production to the UK www.mymas.org | [email protected] | 0845 658 9600 @mas_works MAS on LinkedIn 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: www.hexagonmetrology.co.uk 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 trained and qualified engineer. In addition to developing your career prospects you also benefit from: • A long term increase in your earning potential • A qualification with international recognition • Networking opportunities • Independent verification of your skills and abilities If you aren’t registered don’t put off the decision any longer. Invest in your career today and contact us on: [email protected] or call +44 20 7304 6999. For more information visit: www.imeche.org/membership Improving the world through engineering Improving the world through engineering Institution of Mechanical Engineers 1 Birdcage Walk Westminster London SW1H 9JJ www.imeche.org MX COVER-BC.FC.indd 2 18/09/2014 11:12
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