May 11, 2015 Case Studies, Lean Manufacturing Background The client company is a provider of advanced composite materials and technologies. Having previously applied the principles of 5S in other areas of the business and seen operational and efficiency improvements, they wished to further apply the approach in an attempt to sustain a culture of continuous improvement, while using a successful, standardised and structured approach. The Challenge The company are making a transition from the traditional manufacturing model and have a vision to become a leaner organisation. With the acknowledgement that their employees are the only people that can bring the change required, the managers of the production area agreed that it was necessary to educate them in one of the foundation tools of any lean business. Although some of the workforce had heard of 5S before, not all necessarily had the understanding that 5S transcends beyond a ‘housekeeping exercise’ and does in fact underpin a profitable organisation and a lean culture. The Objectives To upskill and ensure team members have an understanding of the 5S principles and how to apply them to their working environment using a structured approach. The Solution Following the traditional ‘learn by doing’ approach, Industry Forum developed two 1 day 5S workshops that consisted of a mix of theoretical training, a short example and practical activity. The team were led through the 5S teach point and played the ‘numbers game’ before carrying out a assessment of the current 5S condition in their target areas. The 5S numbers game is a simple but practical example that presents the 5S concepts to the team and demonstrates how to practically apply it. This interactive example clearly highlights the efficiency improvements that can be gained by applying 5S. All participants then went into the target area and worked together to remove all unnecessary items from the area (Sort) and arranged the work space to ensure that it was safe, organised, and promoted an efficient, clean workplace (Simplify). Coaching was given to the team to develop visual standards in the form of 5S checksheets (Standardise) to help maintain the standard of the activity and guidance on how to sustain 5S across the organisation (Sustain). The Benefits Improved visual management in the target areas means teams can easily and quickly identify abnormal conditions and act on them before they manifest into major issues. All excess consumables were returned to stores, freeing up valuable space lineside and reducing the clutter. Items are now easier to find in the area. Better organisation in the target area(s) means that the team can ensure time isn’t lost searching for key equipment and materials. Identification of overproduction and countermeasures put in place to eliminate it. This led to a reduction in inventory. Obsolete plant equipment removed from area. This not only decluttered the area, but also meant that essential items could to be stored closer to point of use, and improved safety. The Customers View “With the help from Industry Forum, we as a business have learned the key principles of 5S. This training has helped our business successfully implement 5S within our busy production facility. We now have a structured and standardised approach to 5S”. Neil Worthington, Production Manager Reference File: Download case Study (pdf format)
April 27, 2015 Articles This year Bosch, the global electronics firm who are a major player in the automotive supply chain, are recruiting nearly 80 engineers in the UK as part of a much larger worldwide expansion. A spokesman explains that as connectivity expands in every business sector from mobility to industrial technology, the importance of software does too. This is driving their worldwide demand for more engineers. A survey of the UK labour market in March 2015 by the Recruitment and Employment Confederation finds that salaries are rising quickly across a number of sectors. The most sought after categories are engineering and financial. According to the chief executive of the Confederation increases in starting salaries are being driven by skills and talent shortages . In the USA, The Manufacturing Institute in Washington DC has completed a forward look at the recruitment needs of the US manufacturing sector, working with Deloittes with a survey of 450 firms. The results suggest that a major skills shortfall is emerging in US manufacturing. It threatens the sector’s ability to meet customer demands, its ability to increase production and its ability to implement new technologies and raise productivity. A major factor is the retirement of the ‘baby boomer’ generation coupled with the difficulty of attracting suitable quality younger recruits to the sector. The forward look proposes the introduction of major programs involving a wide range of stakeholders. The sector as a whole must communicate with the younger generation how much it presents viable career options. Clear competency models are needed coupled to role based skill requirements as part of major training and talent management strategies. The industry must pursue high performance team working supported by high performance management. In the UK, the automotive sector has come together with other key players to form the new Automotive Industry Partnership, a similar approach to that proposed in the US by the Manufacturing Institute. It aims to inspire the next generation of automotive engineers and technicians, create new routes into automotive careers and increase skill levels in the industry. The Automotive Industrial Partnership consists of the UK’s largest automotive employers – Aston Martin, Bentley, BMW, Ford, General Motors, GKN, Honda, Jaguar Land Rover, Nissan and Toyota – as well as SEMTA and SMMT. It is estimated that by 2020 at least 50,000 jobs in the UK automotive sector will need replacing, with skills priorities in strategic advanced technologies linked to increased connectivity, advanced propulsion and lightweighting . Automotive Industry Partnership initiatives include: Supporting the development and roll out of robust and high quality new world class Apprenticeship Standards, with the development of Trailblazer Apprenticeships in seven key areas Piloting a range of programmes to attract more work ready new entrants to the sector, including giving 4,500 Year Six students an experience of working in the industry through a one day production simulation and taking on 960 11-16 year old Industrial Cadets, to develop vital industry skills in team working, communications and problem solving over a six day programme Providing a route to work for 19+ year olds, with a 15 day programme offering vocational training and simulated work activities designed by their potential future employers Assessing functional and employability skills leading to further work experience at a host company, helping young people with little or no workplace experience and vocational skills on a route to possible future apprenticeships In depth research to establish automotive industry employers’ current and future skills needs Developing industry approved high quality learning and development solutions that are relevant to job roles across the whole industry Formally accrediting quality assured training organisations to deliver industry approved frameworks, qualifications and programmes Upskilling the existing workforce and retraining and recruitment initiatives to bring new talent to the industry, which will benefit large manufacturer and SME supply chain employers Attracting 10,000 apprentices and 2,000 graduates by 2018 Looking further ahead, Nesta, the UK national innovation think tank, have just published the results of a survey of young people’s opportunities for and attitudes to digital creativity, entitled Young Digital Makers. It starts with a recent House of Lords report on digital skills which warns that there is a lack of skills in the UK in making with technology which means that with digital business developing so rapidly there is a serious risk that the UK could be left behind. For Nesta, digital making involves a range of skills and understanding based on the idea that learning about technology should be based on making things with it. Nesta have found that face-to-face interaction with others is a vital part of developing learning in practical activities and they have focused on organisations that create that kind of opportunity. Nesta have found that digital making gets strong support from parents: 89% think it is a worthwhile activity 84% think it is important for careers and jobs 74% would specifically encourage a career in digital making 99% think computing should be taught in schools 53% have bought something to help children do digital making But only 12% are able to signpost children to online or face-to-face opportunities. There are important gender differences in attitudes to digital making. 17% of boys use digital making as a way of making money whereas only 9% of girls do. Nearly half the boys surveyed find digital making technology interesting whereas only a third of girls do. Nesta conclude that young people need to be supported as digital makers across the UK, not just in London where there is a concentration of opportunities for them. Nesta have also found that there aren’t enough technology professionals to work with the broad mass of young people on digital making but he survey found plenty of examples where non-professionals facilitate digital making with suitable resources and support. They want clear pathways to excellence to grow young people’s ambitions as digital makers and help them fulfil their potential in and out of school. Nesta are currently planning the next step for the UK digital making programme. Further information: enquires@if.wearecoal.work +44 (0)121 717 6600 Download Article (pdf)
April 7, 2015 News Total Productive Maintenance (TPM) and the Toyota Production System can transform business efficiency. But to get sustainable improvement, your culture and business processes must be right. In November 2015, SMMT IF hosts a maximum of 20 delegates in Japan, to experience and understand Best Practice first-hand. See how TPM improvement is achieved on the shop floor using effective autonomous maintenance Learn from and question Japan’s most experienced TPM experts Understand the roots and application of the Toyota Production System from the founders Return with proven strategies you can implement Share and compare ideas networking with senior industry peers Reappraise and benchmark your improvement journey to date Previous attendees included representatives from Jaguar LandRover, Perkins Engines, Owens Corning, John Crane, Philips, Sunseeker and many more. Save up to 20% on the delegate cost The price for the programme is £5,295 per delegate but if you book before 31st May 2015 you will receive a 10% discount. This discount is on top of the 10% discount already given if you are a SMMT member. To learn more about the programme and the benefits to your company and your development please visit the Best Practice Programme Webpages.
March 31, 2015 Case Studies, Lean Manufacturing Background The client is a major supplier in the automotive industry. They develop and produce mechatronics systems for vehicle doors and seats as well as electric motors. Within an organisation of over 50 locations across the globe, the UK division has seen phenomenal growth in recent years. With this growth set to continue, the client has recognised the need to drive key skills across the organisation. They have embarked on a major training programme, creating a brand new training school and training over 400 members of staff to date. A critical tool for both daily management and process improvement is problem solving. The client approached Industry Forum to provide practical problem solving training based around the 8D principles, as part of a larger ‘core tools’ quality systems training package . The Objectives As well as upskilling the employees in problem solving techniques and the use of their problem solving documentation, one of the key course objectives was to begin to break down some cultural barriers. The training would need to demonstrate why a structured, team based approach should be adopted when carrying out problem solving activities and also highlight the reasons why constantly operating in ‘firefighting mode’ is not sustainable in the long term. The Industry Forum solution Industry Forum ran three one day workshops for delegates who were trained in the 8D approach to problem solving. To help bring the training to life, Industry Forum used a simple but technical simulation to demonstrate the different stages of effectively solving a problem. In this simulation, delegates are presented with a pot of ‘faulty’ pens which they need to analyse and investigate using the problem solving techniques to get to the root cause. During the course, the teams have the opportunity to define the problem by creating pie charts, pareto charts and process maps, brainstorm solutions using Ishikawa (fishbone) diagrams, use 5 why analysis get to the root cause, and evaluate potential permanent actions. As the client had already developed their own standard 8D templates, Industry Forum worked with them to integrate the documentation into the training. This early alignment enables delegates to apply their learning to future problems in a standardised way. Delegates are able to use the documentation developed during the training simulation activity to provide a route-map when they commence activities on live problems. Results Thirty six people were given a levelling understanding of 8D problem solving. To ensure the training was then applied in the workplace, teams were set real business problems to solve. They were given a timeframe to use the 8D techniques learned to identify and eliminate the root cause of the problem. The Problem Solving course was part of the Core Tools Training, a quality focussed system, for which upon passing a written exam, delegates receive Certification from the SMMT, the IATF approved oversight office in the UK. Need 8D Problem Solving training for your organisation? Find out more The customers view “I will be able to take a far more active role in problem solving and managing an 8D process” Production Supervisor “The course was well planned and structured. Team work was encouraged and well executed throughout the course” Industrial Engineer “I am glad it was a cross functional session, not just the quality department.” Quality Engineer “This course will allow me to follow the correct process and broaden my solutions to problems rather than focus on just one.” Quality Engineer “The course exceeded my expectations. It was well paced and enjoyable and will help me to resolve problems in my area.” Supervisor Reference File: Download Case Study (pdf format)
March 16, 2015 Articles Advanced Manufacturing is a major competitive strength in the European Union according to a study published in February 2015 by the Key Enabling Technologies (KETs) Observatory. The Observatory’s role is to provide national and regional policymakers with information on KETs for European competitiveness by comparing the EU with North America and East Asia. The Observatory finds that Europe retains the leading global share in advanced manufacturing exports and patents. This is based on the capability to integrate a number of different technologies into manufacturing processes and the associated equipment. This capability has to be linked to a deep understanding of the challenges and requirements of customers and the markets that they serve. This ability to produce usable and relevant advanced manufacturing equipment helps safeguard Europe’s position ahead of emerging economies. But, the global export share in advanced manufacturing of East Asia is rising steadily and is well ahead of North America, so there is no room for complacency about Europe’s lead. From a UK point of view, the customer sectors for advanced manufacturing include the thriving transport equipment manufacturing sector which covers Automotive, Aerospace and Rail. In terms of advanced manufacturing patents, in 2011 the UK ranked third in Europe behind France and Germany which had a 20 percent share of European patents. In advanced manufacturing production in 2012 the UK ranked fourth behind Germany, Netherlands and Italy but ahead of France. One of the most immediate impacts of advanced manufacturing is a dramatic fall in the costs and timescale for new product development thanks to the development and spread of low cost additive manufacturing equipment which is extremely effective in prototyping. This is one of the many current developments in digital business which favours start-ups and SMEs. But a prototype, however rapidly it is produced, is of limited value unless it is in a state where it can be scaled easily in manufacturing. Start-ups often use contract manufacturing with a low cost emerging economy supplier. This strategy carries plenty of risks such as the obvious lack of control involved and the need to establish an excellent relationship with the manufacturer from a different business culture. Other potential risk areas include quality, securing IPR, capacity, agility and flexibility. There is also the question of financial risk management particularly as this is the stage in a start-up’s development where external finance often enters the equation. This complex of issues is high on the agenda in the growing accelerator movement in the UK and elsewhere whereby new firms are helped to develop effective strategies for sustainable growth. The largest UK manufacturing sector in employment terms is the Food and Drink sector. It is the second largest in Europe and only slightly smaller than the German sector. It has been steadily expanding its share of export markets. In 2013 the sector developed 16000 new products – between 2 and 3 for every firm in the sector. It is supported by an active UK contract manufacturing and packaging industry which is spread across the country with particular concentrations in the North West and the Midlands. The perishable nature of the goods is an obvious driver for an indigenous contract manufacturing capability. In advanced engineering in recent years, global majors based in the UK have also become interested in building up local supply because of the requirements for rapid new product development. This theme has been picked up by the CBI and at the end of February the Coalition Government published a national plan for developing manufacturing supply chains. The opportunities for increased UK manufacturing supply are substantial. The plan estimates that UK firms currently satisfy only half of the UK demand for manufactured components. The plan identifies a number of new opportunities: £5bn potential extra automotive sourcing opportunities 30,000 potential jobs in the offshore wind supply chain by 2020 A new shale gas supply chain which could be worth £15bn by 2030 £4.7bn new value added from nuclear new build supply chain To develop these opportunities, manufacturing supply chain firms should combine product and manufacturing process innovation with business process and systems innovation – a route to an increase in overall productivity. New capital equipment as a source of new technology is a good starting point. Good support and advice is needed for smaller firms to get this investment right. One source of support and advice is the Manufacturing Advisory Service (MAS) which was started by the previous government and extended by the Coalition. MAS run a quarterly barometer survey and the latest results (for the last quarter of 2014) show that 54% of manufacturing SMEs surveyed predict that they will increase investment in new technology in the first half of 2015. This is the highest figure since the barometer began at the start of 2012 when the figure was nearly 20% lower. It remains to be seen how the manufacturing supply chain plan survives the 2015 election but the extent of industry support for this approach, plus the scale of the opportunities available, increase the chances that continuity will prevail. An important factor in the success of manufacturing sectors such as Automotive and Aerospace has been a degree of policy stability which helps create a favourable investment climate and encourages the development of positive business relationships in the supply chain. The impact of the digitalisation of the whole business domain is being felt by global manufacturers as well as smaller firms in the supply base. One important dimension is the development of a global manufacturing footprint that is capable of operating effectively throughout the whole product life cycle. In today’s global markets demand can fluctuate significantly and different manufacturing approaches will be suitable for different patterns and stages of demand. A global approach to manufacturing means a global approach to managing supply. The performance of suppliers in the UK is increasingly compared with competition from across the globe which adds to the pressure for the UK manufacturing supply base to set ambitious goals for performance improvement. These pressures are set to intensify. Such conditions have been present in Automotive manufacturing supply chains for some time. SMMT Industry Forum has extensive experience in effectively supporting manufacturing organisations, across multiple sectors, understand and improve capability and capacity through a combination of expertise, insight and best practice. Further information: enquires@if.wearecoal.work +44 (0)121 717 6600 Download Article (pdf)
March 13, 2015 News Automotive Industrial Partnership On Starting Grid The future of the UK’s automotive industry was lined up on the starting grid at the House of Lords today – to mark a milestone moment in its industrial history. (Thursday March 12). The Automotive Industrial Partnership, which consists of many of the UK’s leading automotive manufacturers aims to drive growth, investment and revenues by securing skills for the future. Business Secretary Vince Cable announced the £30m initiative earlier this year (January 2015). Jo Lopes, Chair of the Automotive Industrial Partnership and Head of Technical Excellence at Jaguar Land Rover hailed the launch as an important moment in the history of the sector. “This is an exceptional moment for our sector. The Automotive Industrial Partnership brings together the sector’s employers to work collaboratively on an unprecedented scale.” “The unified effort – from all sides of the industry and government – will ensure that the automotive sector will thrive for generations to come.” “The UK’s automotive industry is one of the most successful in the world. We are achieving record growth, creating thousands of jobs and attracting major inward investment. Ensuring we have a pipeline of skills talent now and for the future is critically important to our continued success.” “The partnership will see large manufacturers working alongside SME supply chain employers to develop good practice that the entire industry will benefit from.” “We are aiming to inspire the next generation of vehicle makers and create new routes into automotive careers, as well as upskilling those that already work in the industry”. Business Secretary Vince Cable said: “This investment puts our automotive sector in the driving seat to design the skills our manufacturing companies need. There is a risk that without adequate investment in skills, the industry will run into serious skills bottlenecks.” “Through our industrial strategy we are working in partnership with the automotive sector as it goes from strength to strength. We are providing businesses with the confidence to invest, and to create high skilled jobs.” Among the household names driving the partnership are; Bentley, BMW, Ford, GKN, Honda, Jaguar Land Rover, Nissan, Toyota and Vauxhall. Not for profit employer led skills organisation Semta, industry trade association the SMMT working through the Automotive Council also support the Automotive Industrial Partnership in conjunction with the Industry Forum, the Department for Business, Innovation and Skills (BIS) and the UK Commission for Employment and Skills (UKCES). Initiatives include: Supporting the development and roll out of robust and quality focussed new world class Apprenticeship Standards, with the development of Trailblazer Apprenticeships in seven key areas Piloting a range of programmes to attract more work ready new entrants to the sector, including giving 4,500 Year Six students an experience of working in the industry through a one day production simulation and taking on 960 11-16 year old Industrial Cadets, to develop vital industry skills in team working, communications and problem solving over a six day programme Providing a route to work for 19+ year olds, with a 15 day programme offering vocational training and simulated work activities designed by their potential future employers. Assessing functional and employability skills will lead to further work experience at a host company, helping young people with little or no workplace experience and vocational skills on a route to possible future apprenticeships Carrying out in depth research to establish automotive industry employers’ current and future skills needs Developing industry approved high quality learning and development solutions that are relevant to job roles across the whole industry Formally accrediting quality assured training organisations to deliver industry approved frameworks, qualifications and programmes Upskilling the existing workforce and re-training and recruitment initiatives to bring new talent to the industry, which will benefit large manufacturer and SME supply chain employers Attracting 10,000 apprentices and 2,000 graduates by 2018 The event, hosted by Baroness Wall of New Barnet, was addressed by Ian Green, Senior Controller, Global Training Centre, Nissan, Dr Simon Farrall BMW Group Head of Apprentice and Associate Training, Andrew Parsons, Section Manager, Technical Skills Development, Toyota Manufacturing (UK) Ltd, Dr Steve Maggs, Principal Teaching Fellow WMG, University of Warwick, Alexandre Cazals, Product Development Graduate, Jaguar Land Rover.
March 10, 2015 Case Studies, Lean Manufacturing Background The client is a supplier to a large ‘off highway’ OEM. As part of a commitment to developing their supply chain, the OEM and client have embarked on a major long term strategy that aims to support research and development, skills training and capital investment. The Challenge To potentially develop and win new business, the client needs to improve quality performance and operational control. As a business that has used parts of various lean tools in the past, the company Director acknowledged the need for an improvement programme by stating: “By working on lean manufacturing techniques we can make our supply more attractive to customers.” The Objectives To educate key members of the business in the lean tools and techniques which will enable them to cascade this knowledge throughout the business. Team members must include senior managers as well as operatives. The Industry Forum Solution Industry Forum developed a 6 day up-skilling programme that was split into three sets of two day blocks to accommodate the operational challenges of the business. Phase 1 After capturing expectations, the team dived into data collection and analysis. Once the information they needed to be able to manage the business was rationalised, the team drafted a visual management board which showed how the information was to be displayed. The team then went through a structured approach to 5S Workplace Organisation in their chosen focus area. Phase 2 Lean tools covered in this phase included Waste Identification and Analysis. Once educated on what the 8 Wastes are, the team then went out into their focus area and identified the wastes they could see, and came up with solutions on how to eliminate them. Having identified, from the first phase, that there was an issue with unclear roles and responsibilities within the organisation, Industry Forum ran a micro workshop that aimed to focus the team on thinking about who is responsible and accountable for which processes within the organisation. This was then presented to the entire management team. Phase 3 Over the course of a day, the team went through the 8D approach to problem solving and used it to get to the root cause of a real problem they were experiencing in the business. To round off the programme, the team covered change management and sustainability. This section was included to give the client the best possible chance of success in the future. The Benefits All team members stated that after the training they felt comfortable in continuing the roll out of the lean tools and techniques across the business. Using the Plan-Do-Check-Act methodology, the company now hold daily reviews around the visual management board created during the programme. This enables key stakeholders to manage the business better and to react if performance falls below target levels A 5S roll out plan was devised and a 5S champion allocated. The Customer’s View Dave Sharratt, Quality Manager “The hands-on application of the continuous improvement course was delivered in a structured and professional manner. It was great to be hands-on getting dirty rather than sitting in a classroom for hours.” Reference File: Download Case Study (pdf format)
February 10, 2015 News Industry Forum is pleased to announce that it has now become an approved training provider for APICS supply chain and operations management qualifications. Chris Owen, Chief Executive, said “In gaining International Channel Partner status for APICS training, we are able to provide our clients with world-class training to support their aspirations in achieving supply chain excellence, innovation and improve resilience.” Industry Forum will be rolling out its range of APICS training courses over the following months. If you would like to be notified of our upcoming courses please email enquiries@if.wearecoal.work Industry Forum Supply Chain Management Industry Forum Training Courses
February 5, 2015 Articles Support for the UK transport equipment supply chain now includes the UK Rail Supply Group which has been given £500,000 to help rail suppliers secure new business. £38bn is being invested in the UK rail infrastructure over the next fifteen years. Many other countries have similar investment plans and so there is a series of great opportunities for the UK sector. The Rail Supply Group is led jointly by Vince Cable, Terence Watson who is president of Althsom UK and the Transport Secretary, Patrick McLoughlin. It represents a sector with some 3,500 firms employing 80,000 people and value added of £7bn. The sector will be heavily involved in HS2, further work on Thameslink and Crossrail, London Underground upgrades and major electrification projects. The Rail Supply Group Council have identified five priorities for increased competitiveness covering exports, inward investment, innovation, skills, focused support for SMEs and HS2. On the innovation front, last November the Rail Vehicles Powertrain competition was launched with a budget of £4.4m. The funding is for novel technical solutions making self-powered rail vehicles more energy efficient. In addition, last month the £4m COMPASS competition was launched as part of the development of new systems which will allow trains to keep moving when signal systems fail. This month a £6m competition is being launched to help de-risk potential step change innovations. 2014 saw the CBI develop its industrial strategy by highlighting the need for the UK to strengthen its manufacturing supply chains. The report ‘Pulling Together’ identified a number of supply chain development priorities including increased innovation capability and higher standards of quality and service. The upside potential is estimated at an extra 500,000 jobs and £30bn in value added by 2025. The need to rebalance the UK economy is widely accepted and strengthening manufacturing supply chains is one of the best ways of achieving this. The drivers for majors in the UK to seek improved local manufacturing supply chains include risk analysis of extended supply chains and the high priority of innovation strategy with reduced product development lead times. This amounts to a strong case for reshoring supply – a trend which is evident not just in the UK but across Europe and North America. Offshore wind, automotive and civil nuclear are identified by the CBI as sectors with substantial growth potential. While cost remains an important factor in supplier selection, innovation and service related criteria put UK suppliers in a much stronger position than hitherto. Strengthened manufacturing supply chains mean more healthy employment ecosystems. Manufacturing supply chains involve a diversity of activities with a broad range of jobs at all skills levels. In the UK R&D expenditure is still too low as a share of national economy compared with many of our advanced competitors. China’s R&D spend has been rising steadily and has recently overtaken the UK. In addition UK’s spend is still too heavily concentrated in larger firms compared with smaller firms especially those in manufacturing supply chains. In the same way smaller firms at the lower level in the supply chain are particularly vulnerable to shortages in technical and managerial skills which seem to be developing as the labour market continues to expand. In addition to the sectors mentioned so far, the supply chain opportunities arising from growth in global aerospace are also substantial. Just under a year ago the aerospace trade association, ADS, published a report on growth prospects. Emerging aerospace markets include Brazil, Japan, Mexico and South Korea. Major existing markets for UK aerospace include China, USA, Canada and India and these will continue to be important. The Aerospace Growth Partnership has identified investment priorities for the development of these opportunities – new technology, skills and supply chain enhancement. The AGP Supply Chain development working group seeks to remove barriers to growth via collaborative technology development, improved access to finance, increased performance building on the Supply Chain 21 programme, advanced manufacturing capability and access to new markets. The importance of this kind of long term sector planning and development is highlighted by the challenges faced by European machinery manufacturers, another industry grouping where competitiveness depends on a rich supply chain. Chinese machinery makers have now developed their capabilities so that they can compete with European firms in both domestic and emerging markets. China’s share of the machinery global market increased from 23% in 2008 to 37% in 2012. Besides cost advantages the Chinese have used process innovations to boost their productivity and efficiency. The Chinese have also benefited from increased demand in rapidly growing economies for equipment which is cost competitive and has sufficient performance rather than the advanced customisation which European manufacturers offer. Boston Consulting Group suggests that European firms need to identify the market sectors where the catch-up barriers for the Chinese are high and reinforce their existing competitive advantage there. Where the catch-up barriers are low, European firms need to match the cost innovation strategies of the Chinese by applying similar techniques such as value engineering. Medical equipment and technology is an area where Europe faces a particularly strong competition from the Chinese. Here, European firms should exploit their inherent strengths and consider acquisition of some Chinese firms and strategic alliances with others. The UK automotive supply chain has grown as the overall automotive manufacturing sector has been expanding with greatly increased investment and R&D spend. But, while this is encouraging, there is plenty of scope for further supply chain development. The CBI is right to think in terms of a ten year program to enhance supply chain competitiveness. The Automotive Council has made the supply chain a priority area and Industry Forum has been working on this programme with funds from the Advanced Manufacturing Supply Chain Initiative (AMSCI) to help bolster the efficiencies of the UK’s automotive supply chains. With the general election in May 2015 the UK Government policy dimension of supply chain development will enter a period of uncertainty. Hopefully with so much support across manufacturing, supply chain development will remain a priority for whatever government emerges. The work that has already been done in automotive, aerospace and rail plus the support of the CBI should all help make a strong case for further development underpinned by government support. It is no exaggeration to say that the UK has the potential to develop a powerful national transport industries cluster fully internationally competitive exploiting synergies in key areas like relations with higher education and skills supply and employment. Further information: enquires@if.wearecoal.work +44 (0)121 717 6600 Download Article (pdf)
February 2, 2015 Industry Forum Blog Government is joining forces with leading UK automotive manufacturers to boost skills across the sector, inspire the next generation of vehicle makers and create new routes into automotive careers. Business Secretary Vince Cable announced £11.3 million of government funding alongside £2.8 million cash investment and £16.4 million in-kind contributions from industry. The project, developed through the Automotive Council’s Business Environment and Skills Group, brings together major automotive businesses to ensure future skills needs are met for UK vehicle manufacturers and supply chain companies. It follows a successful bid from the group for funding through government’s Employer Ownership Pilot. Business Secretary Vince Cable said, “This investment puts our automotive sector in the driving seat to design the skills our manufacturing companies need. There is a risk that without adequate investment in skills, the industry will run into serious skills bottlenecks. “Through our industrial strategy we are working in partnership with the automotive sector as it goes from strength to strength. We are providing businesses with the confidence to invest, and to create high skilled jobs.” Employment in the automotive industry is set to grow in the coming years, with multi-billion pound investments taking hold and production volumes on course for record levels. With developments such as connectivity and advanced manufacturing taking the sector into exciting new territory, recruitment is a major challenge facing the industry. Manufacturers will work together to identify and meet the skills needs for their current and future workforces, ensuring the UK automotive industry is in pole position. Young people will also gain first-hand experience of the industry in action, inspiring future generations of engineers and technicians. Jo Lopes, Chair of the Automotive Industrial Partnership and head of Technical Excellence, Jaguar Land Rover, said, “The Automotive Industrial Partnership brings together industry’s employers on an unprecedented scale. By working collaboratively and taking an innovative and sector-wide approach, we are ensuring that the UK’s automotive sector can grow and retain the skills talent that is so vital for the industry’s continued success.” Aston Martin, Bentley, BMW, Ford, General Motors, GKN, Honda, Jaguar Land Rover, Nissan and Toyota represent some of the UK’s biggest automotive employers, and will work together with government, SEMTA and SMMT through the Automotive Council to boost workforce skills, now and for the long term. This includes creating an industry standard “jobs framework” and identifying job “hot spots”, to encourage more young people into automotive manufacturing careers and to deliver clear development pathways to help them to progress. Initiatives include: Giving 4,500 nine year olds an experience of working in the industry through a one day production simulation. Taking on 960 11-16 year old Industrial Cadets, to develop vital industry skills in team working, communications and problem solving over a six day programme. Providing a route to work for 225 19+ year olds, with a 15 day programme offering vocational training and simulated work activities designed by their potential future employers. Assessing functional and employability skills will lead to further work experience at a host company, helping young people with little or no workplace experience and vocational skills on a route to possible future apprenticeships. Existing employees at all levels will also benefit from industry collaboration to strengthen their technical, management and leadership skills. Small and medium-sized enterprises (SMEs) will be supported in gaining access to industry standard skills development. Meanwhile talented, qualified engineers from other professions, such as the Armed Forces, will be able to train to apply their knowledge and skills in the automotive industry.
