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MANUFACTURING EUROPE BEST PRACTICES FOR INDUSTRY LEADERS ISSUE 114 www.manufacturingtoday-europe.com toda y Industry 4.0 is less of a fourth revolution and more of an evolution in many small steps that will truly change how manufacturing and industry does business Driving the future Perhaps we all need to treat drivers with a higher level of respect – and that’s across all sectors of commerce and industry Crackdown on late payment The current steps being taken by UK Government to address the cultural malaise of late payment Also in this issue: change True

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MANUFACTURING

EURO

PE

BEST PRACTICES FOR INDUSTRY LEADERS

ISSU

E 11

4

www.manufacturingtoday-europe.com todayIndustry 4.0 is less of a fourth revolution and more of an evolution in many small steps that will truly change how manufacturing and industry does business

Driving the futurePerhaps we all need to treat drivers with a higher level of respect – and that’s across all sectors of commerce and industry

Crackdown on late paymentThe current steps being taken by UK Government to address the cultural malaise of late payment

Also in this issue:

changeTrue

Chairman Andrew Schofield

Group Managing DirectorMike Tulloch

Sales DirectorDavid Garner Editor

Libbie Hammond

Design/Art EditorDavid Howard

Staff Writers Jo Cooper

Andrew Dann Steve Nash

Production ManagerFleur Daniels

[email protected]

Adverising AdministratorTracy Chynoweth

[email protected]

Head of ResearchPhilip Monument

Editorial ResearchersLaura ThompsonJeff GoldenbergMark CowlesTarj D’Silva

Emily Claxton

Advertising SalesJoe Woolsgrove - Sales Manager

Tim EakinsDave King

Darren JolliffeGraham AllinsonMark Cawston

[email protected]

Schofield Publishing Cringleford Business Centre,

10 Intwood Road, Cringleford, Norwich, NR4 6AU, U.K.Tel: 044 (0)1603 274130Fax: 044 (0)1603 274131

www.manufacturingtoday-europe.com

©2015 Schofield Publishing Ltd

Please note: The opinions expressed by contributors and advertisers within this publication do not necessarily coincide with those of the editor and publisher. Every reasonable effort is made to ensure that the information published is accurate, but no legal responsibility for loss occasioned by the use of such information can be accepted by the publisher. All rights reserved. The contents of the magazine are strictly copyright, the property of Schofield Publishing, and may not be copied, stored in a retrieval system, or reproduced without the prior written permission of the publisher.

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As this issue of MTE goes to press, many of Britain’s leading manufacturers have gathered together at the National Manufacturing Conference in London. An interactive polling amongst the delegates revealed

that 96 per cent feel positive about the current state of UK manufacturing – good news for a sector that had been through such a difficult few years.

In March 2015 KMPG commented that the UK manufacturing sector continues to show that it is on a recovery path, and growing.

And in February, the CBI Industrial Trends Survey reported that ‘activity in the manufacturing sector picked up pace, and output is expected to grow faster still in the next three months’.

There are other considerations of course. The UK sector is performing well, but the CBI have described the Eurozone as ‘treading water’ and while falling oil prices should be positive for the UK economy overall, they are causing North Sea producers to suffer.

So is it a mixed bag? I’d like to hear your perspective.

www.manufacturingtoday-europe.com 1

MANUFACTURING

EURO

PE

BEST PRACTICES FOR INDUSTRY LEADERS

ISSU

E 11

4

www.manufacturingtoday-europe.com todayIndustry 4.0 is less of a fourth revolution and more of an evolution in many small steps that will truly change how manufacturing and industry does business

Driving the futurePerhaps we all need to treat drivers with a higher level of respect – and that’s across all sectors of commerce and industry

Crackdown on late paymentThe current steps being taken by UK Government to address the cultural malaise of late payment

Also in this issue:

changeTrue

Editor’s Comment

messageManufacturing

22 Crackdown on late paymentThe current steps being taken by UK Government to address the cultural malaise of late payment

24 Sensing the futureFour steps to consider when building a smart sensor strategy

26 Get positiveIncreasing employee engagement is not something to be entered into lightly but it is worth focusing on

28 ERP - what you should be looking forTo get the best from any ERP investment, companies need to make any decision based on a holistic business perspective and not an IT, functionality-based set of considerations

30 The right systemSucceeding with Continuous Improvement has proven harder than expected for many organisations

Features

8 Lead story

2 www.manufacturingtoday-europe.com

14 Under scrutiny

16 IT

18 Driving the future

33 George Utz

4 NewsUpdates and announcements from the manufacturing arena

8 Ready for a changing worldHow can the UK and the rest of European manufacturing improve competitiveness and implement the structural and supply side reforms to create sustainable growth?

10 When the lights go outDespite the very real risk of power outages, a huge proportion of the critical UK infrastructure is still 100 per cent reliant on the mains supply

12 Building on the heritage of excellenceStephen Chadwick looks at the British automotive sector’s integration and collaborative innovation initiatives

14 Under scrutinyAccording to recent research global manufacturers are ‘turning a blind eye’ to supply chain risks

16 True changeIndustry 4.0 is less of a fourth revolution and more of an evolution in many small steps that will truly change how manufacturing and industry does business

18 Driving the futurePerhaps we all need to treat drivers with a higher level of respect – and that’s across all sectors of commerce and industry

21 Bearing upThe latest developments in plastic bearings, and how industrial manufacturers can use them to produce cost savings while increasing their environmental credentials

12 Building on the heritage of excellence

33 George Utz With a history dating back nearly 70 years, the Utz Group has developed a market-leading reputation in the design, development and manufacture of both custom and standardised material handling products

37 Teagle Machinery Teagle’s latest product line-up is firmly planted in a rich heritage of agricultural machinery, and its Tomahawk range forms the cornerstone of the company

41 Spicer GelenkwellenbauSpicer Gelenkwellenbau concentrates on the sales, engineering, manufacturing, distribution and service of heavy driveshafts for industrial applications under the brand name GWB

Profiles

CONTENTS

www.manufacturingtoday-europe.com 3

45 Wax LyricalOffering customers a range of candles, reed diffusers, room mists, scented sachets and refreshers, Wax Lyrical focuses on the best ingredients and materials, stunning designs and bold fragrances

51 NACCO MaterialsHandling Group (NMHG)Since 1989, NACCO Materials Handling Group (NMHG) has provided the strategic leadership and global support behind Hyster and Yale lift trucks

54 Aztec OilsAs Aztec Oils moves into 2015, it has more exciting plans in the pipeline, including a major acquisition

59 Robertson TimberEngineeringRobertson Timber Engineering is now one of the market leaders, and has a very strong brand and name within the industry

41 Spicer Gelenkwellenbau

37 Teagle Machinery54 Aztec Oils

33 George Utz

59 Robertson Timber Engineering

4 www.manufacturingtoday-europe.com

16

The UK is the costliest place in the world to invest in commercial property according to global research, which places London at the top of the global league of places to have offices. Last year companies spent $700bn on real estate and this figure is expected to rise to record pre-recession levels of $1tn dollars in the next five years.Paul Statham, CEO of Condeco Software comments: “With the economy starting to emerge out of recession, the cost of commercial real estate is forecast to continue to spiral and businesses will still haemorrhage money unless they have access to the facts about how efficient their office space usage actually is. The most worrying aspect of this is that businesses are not aware of the extent to which their office space is under-used or their meeting rooms left empty, and it is large corporates, who own vast amounts of real estate across many cities and countries, who experience this pain more than anyone else.“A major trend for fast-growth multi-national companies right now is the leveraging of USPs within their workplace, such as collaborative spaces, in order to attract and retain the world’s best talent. A flexible workspace, geared to the daily demands of evolving business will not only work towards supporting better employee engagement and satisfaction, but also seriously enhancing productivity,” he adds.The problem companies face with empty rooms is not just confined to the underutilisation of meeting rooms. The reality is that there is a lack of transparency when it comes down to the whole area of meeting room management according to a study by Condeco, with around 20 per cent of the meeting rooms that are booked not being used at any time.Condeco’s suite of solutions recognise the constantly evolving work environment and allow for the linking of the meeting room to calendar appointments so both are cancelled simultaneously.

Watch your space Changing the face of manufacturing Britain’s manufacturers are bracing themselves for the imminent impact of a 4th industrial revolution, but raise grave concerns over the UK’s ability to play a leading role, according to new research out from EEF, the manufacturers’ organisation.The revolution – dubbed Industry 4.0 and driven by rapid advances in technology – will become a widespread reality of manufacturing life within the next decade, with eight in ten manufacturers expecting their business to be affected by 2025.Nine in ten say the UK should be taking a leading role, seeing clear benefits to the sector and the rebalancing of the wider UK economy. But six in ten warn that the UK risks being left behind, potentially knocking back Britain’s burgeoning industrial renaissance and prompting calls for the next Government to ensure the right industrial strategy and support framework is in place.The research supports a key theme of this year’s National Manufacturing Conference and is published alongside a specially-commissioned report - Manufacturing, Britain’s Future - sponsored by leading technology companies Infor and IBM. The report sets out how the 4th industrial revolution is at hand, and how, in the global battle for dominance, innovative firms can take the lead and help position Britain as the manufacturing and technology hub of Europe. Terry Scuoler, CEO of EEF, says: “The 4th industrial revolution will change the global face of manufacturing beyond recognition. The UK must take a leading role if we are to realise our ambitions for a healthy, balanced and growing economy. “The next decade will bring great and rapid change and the early-adopting nations will maximise the opportunities presented by new technologies and thrive as a result. There will inevitably be winners and losers, which is why we should take note when manufacturers say there is a real danger of the UK being left behind.“Our sector’s ability to remain on top of the 4th industrial wave hinges on the decisions made now and over the next decade by consecutive governments. We must continue to establish the foundations to support our manufacturing renaissance, particularly alleviating the pressure that Industry 4.0 will place on investment and skills. It is vital that the Government steps up to this challenge and works hand-in-hand with manufacturers and academia to ensure that the UK is not left behind.”

On guardFortress Interlocks and Troax have combined forces to create a new perimeter guarding system to protect workers from dangerous machinery. The system utilises a unique new bracket for fitting Fortress interlocks to Troax perimeter guarding panels, enabling the safeguarding of virtually any machinery installation.Very easy to install for both end users and OEMs, the brackets are 100 per cent compatible with Fortress’ modular amGardpro and tGard ranges of modular interlocks and Troax’s modular mesh panels. This means that whatever configuration of interlocks or mesh panels is specified first, the brackets will always fit. “This alliance between Fortress and Troax offers a simple, modular and very tough machine guarding option for virtually any application,” commented Fortress’ managing director Rob Lewis. Troax mesh panels fitted with a Fortress amGardpro

interlock using the new brackets

MANUFACTURING NEWS

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44

The festivities are over and manufacturing workers are returning to high stress levels according to a new Regus report. Over half of the UK’s manufacturing workforce (58 per cent) say they are closer to burning out than they were just five years ago. This level is significantly higher than the UK cross-sector average of 48 per cent, according to the report that canvassed over 3000 of the UK’s business people about their work environment. The top triggers of workplace stress in the manufacturing sector, are lack of exercise, feeling understaffed and deadline pressures.However, with the pressure on to find ways of reducing stress, many workers believe one way of easing the tension is a break from the main office – at least some of the time. A significant majority of respondents from the manufacturing sector – 66 per cent – found a change of scenery such as working from another location to be a good stress reliever.Richard Morris, UK CEO at Regus comments: “Stress levels are mounting in the workplace as a result of various factors; workers feel deskbound and under-resourced. Dedicated workspaces offer the flexibility to work in a variety of locations. This is the future of work, and brings a number of benefits including improved productivity and employee well-being.”

Burn out or fade away?

Leading foam manufacturer, Carpenter, producers of Fireseal - the world class, highly modified, flexible, acoustic foam for use in the heating and ventilation and construction sector - now meets BS EN 13501 as part of a continued development programme and stringent fire safety testing procedures. As Richard Harris, national sales manager for Fireseal, highlighted: “BS EN 13501 is accepted in all EEC countries, which enables manufacturers to produce or import products that have been tested to a common standard without the need to test in each member state.” Carpenter Fireseal also meets BS476 pt 6 and pt 7 (Class ‘0’) and UL94V-0.The European Standard provides a number of performance criteria to measure the fire characteristics of building products. It includes tests for spread of flame and contribution to fire as well as smoke generation and the production of flaming droplets.Fireseal has been classified as Bs1 d0 - this means it has very low flammability and produced very little smoke and no flaming droplets when tested, giving it an excellent rating.The product is chemically inert and will not dust or migrate when subjected to air movement. Its flexibility offers easy application to curved or complex surfaces and can be readily cut or pressed into a variety of shapes.

Certified for fire safety

Testing time

£1 million available Manufacturing firms have been invited to bid for a share of £1 million to boost UK innovation. The ‘Skills for Innovation in Manufacturing’ competition, launched on 29 Jan 2015, challenges firms to come up with new ways of developing the skills and business practices needed to maximise the value of innovation to the UK economy. In recent years, the UK has risen up the Global Innovation Index, moving from 14th in 2010 to second place in 2014. However, a government assessment of the UK’s science and innovation system, undertaken for the Department of Business, Innovation and Skills in 2014, identified planning, recruiting, training, retention, progression and performance management of people as one of the weakest parts of the system with worrying deficiencies in basic skills, STEM skills and management. Because the economic benefits of innovation are realised through businesses, it follows that the skills, workplace practices, and management at play within them are critical to ensuring the value of innovation is maximised. Paul McKelvie OBE, Training and Development Professional and a Commissioner at the UK Commission for Employment and Skills (UKCES), which is running the competition, commented: “It is fantastic that the UK is ranked as a front-runner in terms of innovation, second only globally to Switzerland. However, we need to do more to capitalise on this if we want to reap the economic reward and remain competitive. To do this effectively, we need to explore the ‘human factor’ in innovation. This means understanding how to better manage innovations; both in the way processes work and how any innovation is taken to market. It is the development of these skills that we want businesses to focus on when responding to our invitation. “This competition is a great opportunity for businesses in the manufacturing sector to come together and come up with ideas and solutions that they want to trial and develop to better maximise the value of innovation. By running this competition, I hope that a range of insights will be drawn from the projects we support to improve future business practice and public policy.” The competition closes at midday on Wednesday 11 March 2015. For more information or to apply visit www.gov.uk/ukces.

Prior Diesel, a Suretank company and leading supplier of diesel driven power solutions and well service products to the oil and gas, marine and industrial sectors, has invested in a highly sophisticated engine test house.Capable of dynamometer testing engines up to 2000 horsepower, the modern test cell is optimised to accommodate any OEM demanding engine characteristics, with advanced cooling capacity, fully adjustable engine bed, incorporating the Da-Taq prolog software suite.Gordon MacLean, joint managing director at Prior Diesel commenting on the new facility said: “This significant investment will allow us to further enhance the product offering and service that we offer to our customers whilst strengthening our position as a market leader in the servicing and refurbishment of diesel and gas engines.“The new equipment will allow us to optimise engines to a higher level, more quickly and efficiently, minimising excessive downtime. Our end users can feel confident that they have a high quality, reliable product that meets stringent environmental and safety standards.”

6 www.manufacturingtoday-europe.com

After a two-year planning and building project, Eberspächer UK Ltd has announced the completion of a major £6.5 million investment, the largest in its history. This sees the company – the UK’s leading manufacturer and supplier of fuel-operated heating, air conditioning and climate control systems for automotive, marine, construction equipment and military applications – open a brand new, state-of-the-art head office, manufacturing and warehousing facility at Forest Gate, Ringwood, Hampshire. The purpose-built facility is now fully operational. Eberspächer UK is planning major expansion of its UK sales and manufacturing operations, and the new building will help achieve these goals. It will provide Eberspächer UK with more manufacturing capacity, both for its existing air conditioning and climate control units as well as the production of a new range of evaporators and condensers. These products will not only be sold in the UK but also in Eberspächer UK’s worldwide export markets, which are expected to double in value over the next three years. The move into the new building will also create employment opportunities, with Eberspächer UK expecting to increase its workforce by some 15 per cent over the next 12 months. With the number of employees currently standing at 85 people, new recruits are expected to join its design/development, manufacturing, sales and warehousing activities.

£6.5 million UK investment

Thought leadership report SKF, in partnership with industrial technology experts and academics from across the globe, has released a new thought leadership report focusing on the future of manufacturing and engineering. The document, entitled ‘Power the Future’, features contributions by specialists from within SKF and leading external authorities. It focuses on current and emerging trends in engineering technology and processes, and outlines how the factory, machinery and the workforce will evolve in the near future.Power the Future will enable engineers and students to develop a greater knowledge of three main areas of interest that are predicted to become increasingly prevalent to future technology developments in a variety of key global industrial segments. The report is divided into three chapters, which focus on the evolution of the factory, the future of intelligent machine design, and the power of knowledge engineering. It can be downloaded for free from www.skfpowerthefuture.com.“For this report we have drawn on our many years of experience to paint a detailed picture of areas within production and manufacturing that we think will experience significant evolution in the near future,” said Bernd Stephan, senior vice president, Group Technology Development at SKF. “As demonstrated in these articles, technology is progressing at such a rapid pace and is increasingly influenced by developments and adoption outside the world of engineering. It is therefore essential that businesses within this sector, including SKF, continue to consistently focus efforts on research and innovation, and also identify future trends which may provide further opportunities.”

New Parliamentary Manufacturing Commission On Feb 5th, a cross-party group coalition of Parliamentarians and leading industry members hosted an event at the Houses of Parliament to mark the start of a new inquiry into the long-term sustainability of the sector in the UK. The inquiry will seek to make practical policy recommendations addressing the emerging area of industrial sustainability and what it regards as the key issues and themes currently affecting UK manufacturing and which threaten the UK’s potential industrial growth, including questions over innovation, skills, finance and taxation, energy, SMEs, trade and investment.Commenting on the new Manufacturing Commission, Barry Sheerman MP, APMG Co-Chair and member of the Commission said: “The APMG has long campaigned for greater understanding from politicians of the often divided manufacturing sector. The Manufacturing Commission is now in a unique position to work within Parliament and across industry to make practical recommendations. It is our aim that through focusing on industrial sustainability in our first inquiry, we can ensure that Britain enjoys a future built on a continued focus on manufacturing.”The forming of a Manufacturing Commission builds upon the All-Party Parliamentary Manufacturing Group’s 2013 research inquiry and report ‘Making Good: A Study of Culture and Competitiveness in UK Manufacturing’, which warned that UK manufacturing is being prevented from becoming ‘wholly competitive’ by a national industrial culture that discourages companies from investing in vital long-term business drivers such as skills development and technological innovation. The Commission will seek to further address these issues. The All-Party Parliamentary Manufacturing Group (APMG) brings Parliamentarians and manufacturing industry organisations together to ensure as broad, and as deep an understanding of the challenges and requirements of the sector as possible.

New ‘performers’ BOFA, the global market leader in fume extraction solutions for manufacturing has introduced two new ‘performers’ to its comprehensive range of units for the laser, electronics and printing industries, featuring the revolutionary iQ operating system.Available to order now, the 2000 iQ and Oracle SA iQ models are the latest BOFA products to incorporate the innovative class-leading iQ system which has received wide industry acclaim since its launch two years ago.Both are upgrades of existing popular products but the iQ system brings multiple performance enhancements for higher efficiency of extraction, individual filter status monitoring and integral design features that combine to deliver a lower cost of ownership.

MANUFACTURING NEWS

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Nottingham based bicycle company, Raleigh, is enjoying the benefits of having implemented Paragon’s Multi Depot routing and scheduling solution for the company’s distribution operations. Raleigh reports that the Paragon solution has helped the company to improve the efficiency of its transport operations, reduce lead times and improve customer service.“We’ve been using Paragon’s routing and scheduling solution for about 15 years, now, and the resulting reduction in our lead times has enabled us to hold less stock and invoice earlier – which has a direct positive impact on our cash flow,” says Steve Wigley, distribution manager for Raleigh. “We originally opted for the Paragon solution because we needed to install a routing system that would help us to optimise our vehicle utilisation and improve the efficiency of our delivery operation. Things have changed over the years; as the market has become more oriented towards the adult leisure sector, our business is not quite as seasonal as it used to be. We still have a small peak at Christmas, mainly for

children’s bikes, but our bigger peak is now spring and summer.”Paragon Multi Depot enables users to plan routes and schedules for multiple depots as a single planning task, and facilitates the switch to central planning with the ability to share results with and incorporate changes from other sites across a company’s operation. Routing in this way has been proven to cut planning time, improve visibility of the transport plan, give planning teams added flexibility and enhance the overall efficiency of the vehicle fleet.Taking just two minutes to process the information, the Paragon software calculates a delivery schedule that takes into account order quantities, delivery addresses, vehicle capacities, promised delivery time windows, driver time constraints and driver work standards. The resulting routes are then passed to the planning team for a final check before being automatically uploaded to the Warehouse Management system to drive the picking and loading processes. The dramatic reduction in planning time has knocked a full day off delivery times.

Reduce lead times and increase cash flow

Think away from the box

New Parliamentary Manufacturing Commission

Digital printing technology is not only transforming corrugated packaging into an eye-catching shelf ready packaging solution for retailers but this flexible material is also capturing the imagination of entrepreneurs who see cardboard as a valuable resource.Corrugated plays a pivotal role in supply chain sustainability by protecting goods in transit and now its cushioning qualities are also being put to equally effective use helping to safeguard cyclists (1) from head injuries on the UK’s busy roads. The material has been engineered into a cycling safety helmet launched by a designer as a sustainable alternative to polystyrene. With a design that mimics the woodpecker, corrugated’s ‘tiny little airbags’ absorb the energy of a collision preventing the helmet from cracking. The design has been tested to European standards and when compared to standard polystyrene, the results are impressive.This new safety helmet is a striking example of the practical applications that are being developed for corrugated to create new business opportunities – such as the new polling booths (2) that were trialled in Cornwall during the 2014 European elections.Cornwall decided to follow the lead of the USA and Australia in using cardboard booths for voters because they were more affordable and reduced the costs of storage, transport, cleaning and repairs compared to wooden booths.In addition to getting the vote in Cornwall, corrugated is proving popular with children in Japan where a designer, renowned for manufacturing playthings and toys from corrugated cardboard, created an amusement park in a local shopping area, turning boxes into a car, tank, castle and a truck.Whether amusing small children or adopting the latest digital technology for packaging such as smartphone apps, QR codes and augmented reality, corrugated cardboard’s versatility is being recognised outside its more traditional markets.For instance, Google has produced a DIY virtual reality headset made entirely of cardboard (3), embedded with two lenses to give the viewer an immersive 3D experience when a smartphone is placed in front of the device.Other novel uses for corrugated include refoldable furniture that is lightweight and recyclable, and recycled corrugated boxes used to make eco-cradles for sleeping babies. It has even been used on occasion by an Italian

football club, which, due to low attendances, placed cardboard cutouts of spectators in its stadium to make the ground appear fuller. The Confederation of Paper Industries’ (CPI) director of packaging affairs, Andy Barnetson, said: “Corrugated’s tremendous versatility is being recognised in a variety of new markets. The growing influence of digital technology is contributing to the industry’s willingness to extend beyond its comfort zone.”

(1) http://www.bbc.co.uk/news/health-25681895

(2) http://www.bbc.co.uk/news/uk-politics-27489648

(3) http://www.bbc.co.uk/news/technology-28120953

The Confederation of Paper Industries (CPI) represents a multi-billion pound industry, thousands of UK jobs and the best packaging recycling record in the country. It is not only economical, but also has a superb environmental record – over 80 per cent of the material is recycled every year, which if laid flat would cover an area the size of Greater London three times over.www.paper.org.uk

From safety helmets to virtual reality glasses - innovative corrugated is the material of the future

8 www.manufacturingtoday-europe.com

The European manufacturing industry has endured a difficult period since the financial crisis

in 2008, reflecting the overall difficult position of the Eurozone economy. As we entered

Autumn 2014 there may have been signs of light emerging from some European markets,

but more recent GDP data for the eurozone bloc again provide some cause for caution.

In the second quarter of 2014 the German and Italian economies contracted and France posted no

growth. Of the four main eurozone economies, only Spain posted an expansion.

While some of the weakness can be explained away by temporary factors, business and consumer

confidence remains fragile and the full impact of EU sanctions on Russia have yet to be seen in the

data. A sharp turnaround in fortunes in not on the cards and we expect eurozone growth to come at

just 0.9 per cent this year.

Having fallen faster and further than some of its European competitors, UK manufacturing has

proved to be an exception to this weaker performance with strong growth forecast of over three per

cent this year and over two per cent in 2015. UK manufacturers have benefitted in particular from the

strong performance of the automotive and aerospace sectors where the UK has a particular strength.

This has fed down through the supply chains benefitting the sector overall. This fed through into

strong recruitment intentions with employment in UK manufacturing having risen for five consecutive

quarters, a trend not seen across the sector for more than a decade.

The EU has set a target for manufacturing to account for 20 per cent of European GDP by 2020. Mark Swift takes a look at the current state of play in the market

While some of the weakness can be explained away by temporary factors, business and consumer confidence remains fragile and the full impact of EU sanctions on Russia have yet to be seen in the data

changingReady for a

world

www.manufacturingtoday-europe.com 9

However, despite this improvement in

performance there are few signs that rebalancing

of the UK economy away from consumption and

towards trade and investment is taking place.

Despite hopes that net trade would now be

making positive contributions to UK economic

growth, official trade data have continued

to disappoint. In the three-month period to

June 2014 total goods exports fell by 0.7 per

cent (the fourth consecutive quarterly drop),

with sales to non-EU markets

showing a particularly marked

decline, coming in at their lowest

level since the third quarter of

2013. Exports to the EU were

largely supported by a pick-up

in demand from Germany but

even this modest improvement

does not mark a reversal in the

downward trend over the past

year. Given recent data showing that growth in

Germany is slipping there are fears over whether

this improvement can be sustained.

While the current prospects for UK

manufacturing remain relatively positive, clouds

are gathering again over the Eurozone. The latest

data for Germany shows that key gauges have

fallen to a 15 month low as ongoing tensions

over Ukraine weighed on the sector. France fared

no better with the economy overall showing

no growth in the second quarter of the year.

Italy, one of European manufacturing’s traditional

powerhouse has lost a quarter of its industrial

capacity since 2008.

So where does UK and the rest of European

manufacturing go from here? How does it

improve its competitiveness and implement the

structural and supply side reforms to create

sustainable growth?

There are encouraging signs that European

leaders now talk about the need for reform

and herald a new industrial strategy, which

has competitiveness at its heart. The new

Commission and Parliament must take a fresh

look at embracing and delivering a new industrial

strategy for Europe that supports all member

states and, puts the EU back on the path to

sustained growth. Manufacturers want to see

a reformed EU, one that is more dynamic and

focused on economic, as well as social, goals. They

also want to see an EU that is fit for a changing

world, doing everything possible to reduce red

tape and promoting a robust market economy,

while securing multi-billion pound trade deals in

key markets.

Beneath this there are a number of specific

area that the EU should focus on to boost the

performance of the EU economy overall and

drive a new spirit of competitiveness. Skills are a

problem for industry right across Europe. With

an ageing population the EU must work with

member states to encourage the brightest and

best of Europe’s young people to choose a career

in industry.

Innovation is also key to meeting the economic

challenges of the future. The EU has huge power

and economic resources at its disposals and

should leverage its international scale to boost

the innovation performance of member states.

Successful programmes such as Horizon 2020

should be expanded.

The EU must also change a culture that has

sought to regulate, at the expense of promoting

competitiveness. There must now be a relentless

drive to free up labour markets, as workplace

flexibility is a two way street that benefits

workers and the businesses they work for and

have a stake in. Reducing this flexibility can harm

businesses and their employees.

Looking forward the EU has set a target for

manufacturing to account for 20 per cent of

European GDP by 2020, up from the current

level of just over 15 per cent. This is a tall ask

given the starting base is a depressed economic

bloc surrounded by considerable global

uncertainty. But, whilst the EU and member states

can do nothing about the wider outlook, they can

look to institute reforms that will free up labour

markets, drive innovation and put competitiveness

at the heart of their agenda. By doing this they

will give European manufacturing every chance of

coming close to, if not hitting the 2020 target.v

Mark Swift is head of communications at EEF, the manufacturers’ organisation. EEF is the representative voice of manufacturing in the UK together with UK Steel. EEF has a growing membership of over 6000 companies of all sizes, employing some 900,000 people from every sector of engineering, manufacturing, engineering construction and technology-based industries. For further information visit: www.eef.org.uk.

Report

Mark Swift

There must now be a relentless drive to free up labour markets, as workplace flexibility is a two way street that benefits workers and the businesses they work for and have a stake in

10 www.manufacturingtoday-europe.com

The fragility of the UK’s ageing power

generation network is widely

recognised. However the loss of

Didcot power station to fire in 2014

coming hard on the heels of decommissioning

several nuclear power stations and the lack, as yet,

of sufficient, cost effective and reliable renewables

alternative is pushing the country to the brink. Yet

despite the very real risk of power outages, a huge

proportion of the critical UK infrastructure is still

100 per cent reliant on the mains supply – leaving

businesses and consumers extremely vulnerable

should major outages occur.

From traffic lights to railway crossings and

utilities providers, the fact is that in today’s

joined up and internet enabled society, every

aspect of the infrastructure is reliant upon clean,

reliable power supply. And for those tasked with

delivering these services, contingency planning is

not just about safeguarding the infrastructure; it is

increasingly about safeguarding revenue. In today’s

target driven and highly regulated society, any

significant failure in rail or road networks, water or

power utilities will result in fines, negative publicity

and a drop in shareholder value.

The lights may not go out – yet. But can any

business afford to take the risk?

Lights outWhen the UK government takes out what is

effectively a £1 billion insurance policy against

the lights going out, it is clearly time for the rest

of the country to take note. With Britain facing a

severe power generation crunch for the next two

winters and Ofgem warning that the margin - the

spare capacity above peak demand - could fall to

as low as two per cent next winter, contingency

plans are becoming important.

In addition to the recent controversial

announcement regarding the proposed payment

of £990m in subsidies to power plants to

guarantee demand can be met from 2018, the

government has also invested heavily in the

Critical National Infrastructure (CNI) and the

Securities and Emergencies Measures Directive

(SEMD), designed to protect critical sites against

terrorist attack.

So not only does the UK have to contend with

outWhen the lights go

As Andy Parfitt insists, failing to safeguard that power supply could compromise both revenue and public safety

a power generation network still in transition,

a loss of power may not just come from grid

overload: there is a significant risk of terrorist

activity compromising the power network. And

that means there is a pressing need to safeguard

not only the most obvious aspects of the nation’s

infrastructure – the banks, the petrochemical

plants, the power stations, and the government

– but to also ensure that the air, road and rail

networks are able to manage in the event of

power outage; that water supplies are not affected

and that emergency services can still communicate

effectively.

Fragile societyThe importance of such contingency planning is

demonstrated on a nearly daily basis. When less

than an hour’s downtime of the air traffic control

system over London resulted in two days of chaos;

or when a road closure can cause gridlock in the

surrounding area for hours, the fragility of the UK

infrastructure becomes very clear. How will the

emergency services respond to problems caused

by a power outage when the roads are gridlocked

www.manufacturingtoday-europe.com 11

because the traffic lights are not working? When

innovative technology enables controllers to turn

all the lights green on a key route to support

rapid emergency response – failing to protect the

traffic lights against mains failure would appear

somewhat short-sighted.

Furthermore this is not just about protecting

against a full power outage – in reality just a small

percentage of power problems are associated

with complete failure. It is far more likely that

individual components will be damaged as a

result of a power spike, surge or dip. Protecting

against these problems is also critical to keep the

infrastructure working effectively and to minimise

the additional costs associated with costly repair.

Of course, these are not standard

environments. In addition to being typically

unmanned, from traffic lights to water treatment

plants, these are harsh environments subject to

extremes of temperature, vibration, water ingress,

dust and dirt. They are certainly not suitable for

the standard Uninterruptible Power Supplies

(UPS) that are deployed in clean, temperature

controlled offices and data centres to provide

clean, reliable power supplies. Put these UPS into

the power plant and the life span will shrink from

ten years plus to perhaps just months as a result

of dust or shorting out due to water ingress. Place

them in any environment subject to significant

vibrations and failure will be rapid; while exposure

to cold – or hot – temperature extremes will

result in battery life plummeting.

Fit for purposeThese are critical locations that require

protecting; but they are also often unmanned

and organisations need equipment that is reliable

and offers long-term protection. While some

manufacturers insist data centre and office UPS

need to be regularly tested (including monthly

discharge tests) this is simply not a practical

option for an out of the way, unmanned location.

Demanding monthly maintenance activity creates

an unjustifiable whole life cost in these harsh

environments - the key here is to put in place a

device that is ultra reliable and can both guarantee

a long life and requires minimal on-going

maintenance.

The solution is to provide a rugged

protected UPS that is designed specifically to

work reliably and for a long life within a harsh

environment - one that has been engineered,

modified, ruggedised and tailored to fit within

specific site & application space constraints:

a ‘Protected UPS’. The UPS needs to be the

correct Form-Fit-Function! With the right UPS

in place, organisations can be assured that these

critical aspects of the national infrastructure will

keep running irrespective of power outages

or glitches. Quite simply, put a UPS on a key

traffic light intersection and the traffic continues

flowing, the emergency services can respond as

required; provide a UPS to support a hospital’s

internal phone system and staff can continue to

communicate irrespective of power problems.

Of course, when it comes to national

contingency there is also a financial consideration.

Power stations and water companies, rail

providers and emergency services are all subject

to strict targets – failure to meet these targets

will result in fines, damage to brand image, and an

impact on shareholder value.

Whether the UK hits its full capacity and

the lights go out, or a substation trips for a

few seconds resulting in a surge that damages

equipment, the nation’s reliance on power

Andy Parfitt is sales director at Harland Simon UPS, a specialist independent supplier of Uninterruptible Power Supplies (UPS) from commercial off the shelf products, right through to complex customisation reflecting a customer’s specific requirements.

www.harlandsimonups.com

Power supply

Andy Parfitt

cannot be underestimated. Safeguarding critical

infrastructure is as much about protecting the

smooth operation of the nation as it is about

safeguarding the smooth flow of revenue – and

power contingency is now a fundamental aspect

of business planning.

12 www.manufacturingtoday-europe.com

The British automotive industry has a

long heritage of excellence. Some of

the world’s greatest vehicles have been,

and are being made in Britain. The

future is looking very positive and the industry is a

great success story for the UK economy.

To capitalise on this success vehicle

manufacturers in the UK aim to make more

vehicles more efficiently. They do this by strongly

linking manufacturing to product definition and

by innovating systems engineering to achieve

greater integration of mechanical, software and

electronics functions. This two-pronged strategy

leads to greater production control and increased

manufacturing flexibility. That in turn helps achieve

mass customisation of more appealing vehicles

with advanced characteristics and therefore a

better balance between supply and demand.

All systems goThe automotive industry has always aimed to

be at the forefront of technology and this has

led to many different systems being deployed

over a number of years. Many of these legacy

systems are still in use. The problems that arise

from this history are due to non-integrated of

non-compatible software applications. The result

is that silos of information have built up in many

discreet and disconnected locations. The outcome

of this has been a lack of interdepartmental data

communication that has negatively impacted both

productivity and the ability to collaborate by

sharing information.

To overcome this operational malaise many UK

vehicle OEMs, and their supply chains, deploy the

Dassault Systèmes 3DEXPERIENCE Platform’s

suite of integrated applications to develop, unify

and achieve collaboration around their 3D and

other digital assets. Individual components to

whole vehicles are simulated along with complex

interrelated systems comprising mechanicals,

excellenceBuilding on a heritage of

Stephen Chadwick looks at the British automotive sector’s integration and collaborative innovation initiatives

electronics and software. Applications that cover

the entire product lifecycle by simulating all of its

phases from ideation through design, development

manufacture, usage, maintenance and recycling are

deployed.

Dassault Systèmes partners with British vehicle

brands and supply chains including Bentley

Motors, Jaguar Land Rover and Mclaren as well

as most F1 teams. The 3DEXPERIENCE Platform

facilitates collaboration of teams, speeds time to

market by up to 50 per cent, provides the ability

to better understand and respond to customer

www.manufacturingtoday-europe.com 13

demand, streamlines complex supply chains and

supports decision making while reducing risk.

Thinking inside the boxApplications of The 3DEXPERIENCE platform

reach beyond production of vehicles and into

the consumers’ realm. Car showrooms in cities

where space is precious use the 3DEXPERIENCE

Platform to generate ultra realistic immersive 3D

imagery so visitors can experience every possible

range combination - virtually. Surface textures are

rendered so realistically that it is impossible to tell

real from virtual. Consumer choices can be saved

to generate instructions to produce a vehicle that

exactly matches their selection. It is even possible

to share the vehicle specification via social media

to show friends and family what is being selected

allowing them to join in the process.

The road aheadSupply chain integration is a key to progressing

the collaborative innovation that will help the

British motor industry achieve its potential. Making

3DEXPERIENCE Platform applications available

on the Cloud provides smaller suppliers access

to the same industrial experiences as their OEM

partners. This enables the real-time collaboration

that results in innovation as more, formerly

isolated, groups work together as teams. Accessing

cloud-based applications this way also reduces

costs at tier one and two suppliers as they

have instant access to resources for improved

productivity without any need for configuration or

upgrade procedures.

Lower composites cost and the extended use

of lighter weight metals that can help reduce

emissions provide more design options for

manufacturers. Their growing use is considerably

aided by 3DEXPERIENCE digital simulation

applications. These support 3D modelling and

subsequent production of composite and

aluminium structures in the surety that their

engineering and performance are fully understood

and optimised before they are physically made.

Dassault Systèmes applications have enabled

several UK prestige and high performance vehicle

OEM’s to reduce the weight of their vehicles

while improving strength, rigidity and consumer

appeal.

There has been a strong uptake of 3D printing

in the automotive sector. Key to the use of this

rapidly developing technology is the availability of

3D digital assets across an extended enterprise.

With an integrated application platform, access to,

and utilisation of, 3D digital models is expanding

into non-engineering departments to produce

the business benefits associated with this exciting

new way of making things. Styling and marketing

departments have been some of the first non-

engineers to adopt 3D printing. Now there are

Automotive supply chains

Dassault Systèmes, the 3DEXPERIENCE Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systèmes’ collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings value to over 190,000 customers of all sizes, in all industries, in more than 140 countries.

www.3ds.com/industries/transportation-mobility/

Dassault Systèmes

Driving change at Jaguar Land RoverAn example of this type of integrated system can be seen at Jaguar Land Rover (JLR). Paul Davies,

JLR’s director of product development operations, leads the teams that define JLR’s vehicle

development processes, tooling technology, and project and product lifecycle management (PLM)

technologies for more than 8000 JLR people worldwide. Davies recently said: “The challenge

of expanding JLR’s vehicle portfolio into segment-defining products requires strong technical

foundations. Our IT history generated more than 600 islands and silos of JLR legacy data. The

majority is not inter-compatible. To flourish in business, all our data must be interoperably integrated

and intuitively available to every JLR stakeholder.”

To enhance innovation and reduce development time, JLR partnered with Dassault Systèmes to

deploy the 3DEXPERIENCE Platform in a project called iPLM.

Davies said: “Many business users, and even suppliers of PLM strategies, fail to understand its end-

to-end power. They see PLM as a data management system rather than a business transformation

(BT) tool, as IT rather than BT.”

At JLR, 3DEXPERIENCE Platform applications cover the entire vehicle definition and features

across 14 domains. These comprise bills of material, parts and assembly, requirements and

verification, plus in-vehicle embedded software, which currently accounts for 60 per cent of new

car development. Electrical design, styling, and computer-aided engineering, including multi-physics

and Finite Element Analysis (FEA), are also included.

“Dassault Systèmes applications enfranchise data users and managers with 3D visualisations of

all product data and manufacturing operations,” said Davies. “Assembly and disassembly routines

with legislative, parts and vehicle governance data are readily available in manageable formats.

The immediate benefit of creating, seeing, experiencing and sharing data in this environment is

translating into time savings of up to 40 per cent.”

Introducing a single unified platform that is used by all stakeholders allows innovation to flourish

because specialists’ work can be shared and used by all. Closely linking suppliers into this network

allows internal collaboration to be extended to globally located supply chain partners.

http://www.3ds.com/industries/transportation-mobility/

Case Study - integration in action

moves to equip the aftermarket sector with

the means of creating certain parts with 3D

printers.

Dassault Systèmes 3DEXPERIENCE Platform

is helping the British automotive sector to

integrate its processes using a platform that

all stakeholders access. This means that each

vehicle component can be simulated in context

both within its production environment and on

the vehicle itself. This allows stakeholders access

to the information they need whether they are

designing, engineering, making, repairing, owing,

buying. or just aspiring to one of the new breed

of great British vehicles.

14 www.manufacturingtoday-europe.com

Large manufacturers from across the world have admitted they are awarding contracts to

suppliers without having, or checking, critical information about how they do business.

New research shows that a third (36 per cent) of manufacturers around the world are not

gathering anti-bribery and corruption policies from their suppliers. Further, almost one in five

(17 per cent) do not have health and safety policies for their main suppliers and almost one in five

(17 per cent) were not collecting financial documents from main contractors.

Even when manufacturers did obtain business critical information from suppliers, they failed to check

its accuracy via basic desktop research – such as telephone calls or internet research, on the information

provided by their suppliers.

Basic checks:The research found:

l 29 per cent of manufacturer globally did not conduct basic checks on suppliers’ financial records;l 41 per cent of manufacturer globally did not conduct basic checks on suppliers’ health and safety

policies;l 58 per cent of manufacturer globally did not conduct basic checks on suppliers’ anti-bribery and

corruption policies

scrutinyUnderAccording to recent research global manufacturers are ‘turning a blind eye’ to supply chain risks

Globally the manufacturing sector fared worst out of four sectors polled - with oil and gas/mining,

construction and engineering, and power and utilities all performing at least five per cent better in

this area.

And across the board, UK firms fared below the global average for the manufacturing sector in seven

out of nine areas studied – only faring better in collecting policies for anti-bribery and corruption and

then auditing the details.

The market research was commissioned by Achilles – a global supplier information management

company – and conducted by independent research company IFF. Supply chain professionals from 300

companies were interviewed, including 115 from manufacturing firms in the UK, Brazil, USA and Canada,

the Nordics and Spain.

Comprehensive audits on siteThe research also found a high number of manufacturers also did not visit their suppliers’ sites to check

contractors were actually operating in the way they claimed in policies. In total: l 51 per cent did not conduct on-site audits on financial records;l 35 per cent did not conduct on-site audits on health and safety policies; andl 61 per cent did not conduct on-site audits on anti-bribery and corruption policies.

Tom Grand, Achilles regional director in the UK and Ireland, said: “We were surprised to see that across

the globe, manufacturers appear to be turning a blind eye to potential risks associated with their suppliers.

Around one third of manufacturers do not have policies for their suppliers in business critical areas before

awarding a contract.

“It is not an optional extra for manufacturing businesses to operate safely, tackle bribery and corruption

and address financial risks; typically, these are legal requirements. Having policies for suppliers is really a

fundamental step in terms of managing risk and raising standards throughout the supply chain.

“Large businesses are responsible for carrying out proper due diligence on their suppliers to protect

people working on sites, their own reputation and also the investments of shareholders - who trust them

to manage risks.

“We estimate businesses are spending $60 billion on the global management of supplier information -

yet this survey shows it isn’t working; there are still real gaps in knowledge. It is essential manufacturers put

systems in place to gather, manage and update supplier information.

“Businesses often rely on the same suppliers. Managing their data is up to ten times more efficient

when whole industries work together to agree common standards of suppliers, and then share non-

commercial supplier information via an online portal.”

UK snapshotIn a majority of areas, UK manufacturers were behind their global counterparts when it came to managing

supplier information. In total:

Tom added: “The move to re-shore a significant amount of manufacturing to the UK means there will

be added scrutiny on the sector. It is vital manufacturers have in place robust processes to help add value

to their operations and reduce the risk of supply chain disruption or failure.”

www.manufacturingtoday-europe.com 15

Achilles creates and manages a global network of collaborative industry communities, allowing trading partners to share high quality, structured, real-time data. Using cloud-based technology and industry expertise it acts as an independent partner, providing validated data and insightful analytics to enable buyers across a sector to identify and manage risk and suppliers to increase market reach while increasing compliance and minimising costs for the network as a whole.www.achilles.com.

Manufacturing survey

Achilles

Large businesses are responsible for carrying out proper due diligence on their suppliers to protect people working on sites, their own reputation and also the investments of shareholders - who trust them to manage risks

Financial reports

Health and safety

policies

Anti-bribery and

corruption policies

Obtains main supplier

information

23% don’t obtain reports

(17% don’t globally)

20% don’t obtain policies

(17% don’t globally)

34% don’t obtain policies

(36% don’t globally)

‘Desktop’ checks on

suppliers’ information

31% don’t perform basic

checks (29% don’t globally)

51% don’t perform basic

checks (41% don’t globally)

60% don’t perform basic

checks (58% don’t globally)

On-site audit of supplier

information

54% don’t perform on-site

audits (51% don’t globally)

34% don’t perform on-site

audits (35% don’t globally)

54% don’t perform on-site

audits (61% don’t globally)

16 www.manufacturingtoday-europe.com

A quick history quiz. How many

industrial revolutions have there

been? Most of us will recall school

lessons imparting details of the

shift from farming to industrial

production. However, since then there has been

a second industrial revolution, which introduced

mass production with the help of electric power,

followed by the IT revolution that saw the advent

of electronics and technology to further automate

production. And we now face the dawn of a

possible fourth industrial revolution as digitisation

takes hold.

What makes digitisation so special? It opens

up new ways to respond efficiently to customer

needs with methods that can fix problems

(almost) automatically. How is this done? By

converging a specific set of new technologies

and strategies, grounded in a customer-centric

approach.

Firstly the development of the Internet of

Things and cyber-physical systems such as sensors

and wearable technology has enabled machines,

computers and even data itself to have an

active role in the manufacturing and production

processes. Secondly the development of Big Data

and powerful analytics means that these systems

can process huge data sets and that information

can be quickly translated to intelligent courses of

action. Lastly the communications infrastructure

on which these ‘conversations’ rely has become so

secure that it can be trusted with business critical

aspects such as production. In typical fashion, this

amalgamation of technology and business strategy

has been given a shiny new name: Industry 4.0.

The name is already going global. In Germany,

Industry 4.0 includes an initiative that promotes

the computerisation of traditional industries such

as manufacturing. In the United States, the Smart

Manufacturing Leadership Coalition (SMLC)

is a non-profit organisation of manufacturing

practitioners, suppliers, and technology companies;

manufacturing consortia; universities; government

agencies and laboratories with a similar objective.

Not just another labelFrom a business perspective, it is critical to

understand that this is not a new technology

changeTrue

Paul Carreiro explains why Industry 4.0 is not just another revolution

or even a new business discipline in itself. It is

more an approach to enable results that were

impossible a decade ago. Companies do not ask

specifically for ‘Industry 4.0 solutions’ - and the

technology industry should not want to create

such a label. Rather there needs to be an Industry

4.0 approach to solving customer demands as the

new technology enables.

For example, let us suppose the ‘brief ’ is to

increase the speed of business processes and to

run semi-autonomous processes that can produce

more efficiently. Or to deliver customised or

specialist products in small quantities, without

risking lost productivity and higher production

costs.

For either set of demands, it is easy enough to

identify elements such as communication between

machines, the analysis of large volumes of data in

order to optimise the processes and the need for

secure links between design and production. What

is needed however is a holistic strategy to pull all

this together, with modern software applications

able to span these connections and deliver the

data needed for analysis.

www.manufacturingtoday-europe.com 17

There are two notable pressures on the

development of this software. Firstly, speed: the

timeframes for innovation are getting shorter.

Consequently this software must be developed

and evolved faster than ever. Secondly, complexity:

due to the increased automation and networking,

every process has far more ‘moving parts‘. As a

result the software must be flexible.

Not just another technologyFrom a business perspective there is also the need

to recruit, retain and develop a specific set of

collaborative problem-solving skills. If Industry 4.0

is grounded in identifying customer requirements

and the issues they face, it becomes an inherently

collaborative process to solve those challenges.

Sadly many of those skills are still very difficult to

find.

Broadly speaking there are three categories of

these challenges: market, business and technology.

Market challenges could include the entry of a

new competitor or a new geography opening up.

Business challenges are typically more ‘internal’ - a

change to the business model, or threats and

opportunities presented by partners and suppliers.

Challenges presented by technology itself are

simply a consideration of the benefits that can

arise from better management of the digital

components of existing systems.

That management is dependent upon the

solid, flexible integration of systems. A standards-

based framework that provides the technological

foundation to build business processes and

workflows throughout and beyond the Smart

Factory is critical. Likewise, the interface between

people and technology has to be quick, intuitive

and reliable.

In addition, change management will be a vital

part of Industry 4.0 success. As employees’ areas

of responsibility change from the management of

standard tasks to tracking automated processes

and detecting errors and fixing them, the ability

of staff will be to solve complex problems will

demand substantial re-training.

These are challenging goals. Thankfully Industry

4.0 is less of a fourth revolution and more of an

evolution in many small steps that will truly change

how manufacturing and industry does business.

Paul Carreiro is executive vice-president and managing director, EMEA at Infor. Infor is fundamentally changing the way information is published and consumed in the enterprise, helping 73,000 customers in more than 200 countries and territories improve operations, drive growth, and quickly adapt to changes in business demands. Infor offers deep industry-specific applications and suites, engineered for speed, and with an innovative user experience design that is simple, transparent, and elegant.www.infor.com

Industry 4.0

Paul Carreiro

Challenges presented by technology itself are simply a consideration of the benefits that can arise from better management of the digital components of existing systems

18 www.manufacturingtoday-europe.com

The driver shortage is critical, it’s not

getting any better, and it is not so

difficult to see why. It’s not about the

money. Good rates are being offered

across the industry, but I believe the problem

is more closely related to the way drivers are

regarded and treated. Do we, collectively, as

consumers and as commercial organisations

dependent on an efficiently run logistics sector,

fully appreciate the increasing pressures,

demands and constraints placed upon drivers in

their everyday work?

Businesses are under constant pressure to

cut costs and at the same time speed up the

flow of goods in their supply chains. Retailers

are becoming more dependent on internet

sales, omni-channel solutions and ever-faster

delivery, with later and later cut-offs and

constricting delivery windows. And this

places a heavy burden on drivers to perform

under increasingly difficult circumstances.

According to the Interactive Media in Retail

Group (IMRG) 205 million home deliveries

were forecast for November and December

2014, up from 177 million last year. If this trend

is to continue, where are the drivers going to

come from? The Road Haulage Association

estimates the sector needs 60,000 drivers and

will be 257,000 short by 2022.

What’s more, 40 per cent of HGV drivers

are over 50 and only one per cent is under 25.

The recent introduction of CPC regulations

has pushed many older drivers into early

retirement. Clearly, something needs to be

done.

If we are to appeal to a younger generation

of drivers, we need to look closely at the

pressures we place on these key people who

hold our supply chains together. Of course, we

should expect that standards of competence

futureDriving theIs it really so hard to see why drivers are difficult to find asks Mike Farrall

and safety are maintained and sustained,

however, there are many areas where some

empathy, better planning and a little flexibility

could make drivers’ jobs less frustrating and

more appealing to the young.

There may be little we can do in the

short-term about the stress caused by road

congestion, but more could be done about the

time drivers spend waiting due to inefficiencies

in the loading and unloading process. Long

periods of delay are both frustrating for the

driver and have knock-on impacts to schedules,

all of which make for longer shifts and result in

less time with the family. As for most people,

a job’s impact on family life is a very significant

factor when considering a career.

Better planning and control of processes

in the warehouse would help cut these

delays and reduce order inaccuracies, both

points that often have negative consequences

www.manufacturingtoday-europe.com 19

for both driver and customer.

Furthermore, we should ask ourselves: When

vehicles are being unloaded, should drivers be

left standing in the rain as they so often are? Or

for those offered shelter, could more inviting

waiting rooms be provided? After all, drivers are

expected to work long days – a few creature

comforts would help.

But, perhaps, beyond anything else, we all

need to treat our drivers with a higher level

of respect – and that’s across all sectors of

commerce and industry. These are people doing

their daily work to the best of their ability and

we should respect them for it. If we could just

stop and appreciate what they do to keep

our supply chains moving, and demonstrate

that appreciation, rather than just expecting

more from them, then surely we would send a

message to the young that being a driver is a

worthwhile and rewarding career.

Mike Farrall is chairman of Farrall’s Transport. Established in Cheshire in 1956, Farrall’s Transport is a family owned logistics business offering over 160,000 sq ft of food grade warehousing space across sites in Chester and Deeside and full and part-load multi-drop deliveries across mainland UK through its fleet of 40 tractor units and 60 trailers. The company is a founding member and shareholder of Palletforce, an active member of the Transport Association, the Road Haulage Association and the UK Warehousing Association, and is accredited to ISO 9001:2000. www.farralls.co.uk

Mike Farrall

Fleet

www.siemens.com/buildingtechnologies-oem

Economical operation and environmental protection are important criteria with plant for large building complexes and in industrial process heat generation. With large bur-ner and boiler capacities, efficiency becomes a major cost factor. Also, high emission levels can cause problems to plant operators.

Siemens electronic air-fuel ratio control can bring into play a number of benefits: Simpler burner design and greater precision ensure higher efficiency levels while re-ducing emissions. So, all in all, it‘s a more economical and more environment-friendly solution.

LMV – Innovative electronic air-fuel ratio controlControl Products & Systems OEM

www.manufacturingtoday-europe.com 21

The history of the plastic plain

bearing goes back a long way,

spurred on by the discovery of the

lower friction properties of nylon

in around 1860. But in the last few decades,

the composition of plastic materials has been

refined considerably; in the last 30 years igus has

developed 35 different tribologically-optimised

materials, which offer a lower coefficient of friction

than conventional metals or composite materials

– from the economical iglidur G all-rounder to

the FDA-conforming iglidur A180 material. In

addition to being lubricant free, plastic bearings

are maintenance-free, impervious to dirt, water,

chemicals, heat and shock loads; and because they

have essentially the same dimensional structure

as conventional bearings they are relatively

straightforward replacements.

The base of each polymer bearing is, depending

on specific requirements, a carefully selected

and blended thermoplastic matrix material. To

increase the compressive strength of the bearing,

reinforcing fibres are embedded within the

material during the moulding process, as well as

solid lubricants that optimise resistance to wear

and reduction of friction. The solid lubricants are

very important for the dry-running performance

of bearings between the running surface, usually

a shaft and the bearing, where they sufficiently

lubricate the immediate area.

The great advantage of this type of

homogeneous construction is its lack of layers;

during the transition to the next layer, there is a

distinct change in material properties which can

cause wear with traditional composite bearings,

this usually means the end of the bearing, since the

huge increase in rates of friction and wear lead

to catastrophic failure. With an injection-moulded

iglidur plain bearing however, this does not occur,

and the friction and wear rates are constant over

the entire wall thickness and therefore life of the

bearing.

Replacing metal bushingsigus self-lubricating and maintenance-free plastic

plain bearings are today replacing millions of

metal bushings that require oiling or greasing.

They increase the safety of the machinery, reduce

costs and protect the environment; and because

igus rigorously tests it plastics continuously – over

8000 tests per year for durability, friction and wear

– their lifespan can be reliably predicted.

At www.igus.co.uk/iglidurproducts, the

‘Product Finder’ tool helps engineers find the

upBearing

most appropriate iglidur polymer material that

matches specific requirements (highest service

life in dry run operation, dirt-resistant, vibration-

dampening, resistance to chemicals, good for edge

pressure, etc) and state the allowed static surface

pressure, as well as upper and lower temperature

information.

Every year igus develop many new and

innovative plastic-bearing materials; this

interdisciplinary research involves mechanical

engineers, materials scientists, physicists and

chemists working closely together to meet

industry demands. By investing in plastic

bearings, engineers can reduce production and

maintenance costs whilst their equipment and

machinery operate with total reliability in a more

environmentally friendly way. v

Plastic bearings

Rob Dumayne is a director at igus, the largest producer of injection moulded polymer bearings and reinforced plastic cable carriers in the world. Product lines include industry-leading e-chain cable carriers, chainflex continuous-flex cables, iglidur plastic plain bearings, igubal spherical bearings, drylin linear bearings and guide systems. For further information visit: www.igus.co.uk.

Rob Dumayne

Rob Dumayne reviews the latest developments in plastic bearings, and how industrial manufacturers can use them to produce cost savings while increasing their environmental credentials

22 www.manufacturingtoday-europe.com

Anyone who has spent any amount

of time in a customer supplier

relationship has encountered it – late

payment of bills. We’ve all heard the

phrase ‘the cheques in the post – haven’t you

received it yet?’ Another favourite trick is to

query the most trivial of details and to use it

as an excuse not to pay what is often a very

substantial invoice. Let’s be clear from the

outset - late payment of bills is not a clever

strategic initiative to improve cash flow, it’s a

crude, un-ethical breach of contract. It can have

devastating effects upon totally innocent parties

and reverberate all the way down the supply

chain. It doesn’t matter how those that do it

want to ‘dress it up’ – it’s just plain wrong.

Late payment is not a new issue but the

problem has worsened since the financial

crisis of 2009 and particularly affects small and

medium sized firms. Between 2008 and 2012,

the overall level of late payments due to these

businesses almost doubled from £18.6 billion to

£35.3 billion. As of February 2013, the overall

level of late payment owed to small and medium

sized businesses stood at £30.1 billion – an

improvement on 2012, but well above pre-2008

levels. The average amount owed to a small

business stood at £31,000 and 85 per cent said

they had received a late payment.

It doesn’t require a PhD in Economics to

appreciate the negative effect that this kind

of culture has on UK GDP and in particular,

those companies that tend to be SME’s in the

‘middle’ of the supply chain – exactly where

most BFPA members operate. That is why

paymentCrackdown on late

Chris Buxton reports on current steps being taken by UK Government to address the cultural malaise of late payment and the role being played by the Association

the BFPA, along with sister associations in the

Engineering & Machinery Alliance (EAMA), have

been working with other stakeholders such as

the British Bankers Association and Government

departments to try and address the problem.

2014 saw us engage in government consultations

on the subject, the associated research from

which showed that:

· Small businesses on average spend 130

hours each year chasing late payments, which

equates to just over three weeks of work, at an

average cost of £1500 per business.

· 34 per cent of companies report that

they have sought external finance to cover

gaps in cash flow caused by late payment. The

Federation of Small Businesses states that this

has led to £180 million in debt interest charges

– money that could otherwise be used for

investment and growth.

· In 2011 124,100 businesses were almost

put out of business due to their customers

paying late. In 2008, 4000 UK businesses became

As we go into 2015 the Government is introducing measures to encourage prompt payment by obliging bigger companies to publicly report their payment performance

www.manufacturingtoday-europe.com 23

insolvent as a direct consequence of late

payment.

· Good cash-flow is vital in enabling

businesses to continue to raise finance and

invest when required and late payment has a

major negative impact on businesses ability to

access finance. According to Professor Russel

Griggs, the independent external review of the

major banks’ Appeals Process, in 2012/2013 48

per cent of declined finance applications over

£25,000 were rejected on ‘affordability’ grounds

– the ability of an SME to service the debt from

its existing cash-flow.

As we go into 2015 the Government is

introducing measures to encourage prompt

payment by obliging bigger companies to

publicly report their payment performance.

These measures formed an important part of

the Small Business Enterprise and Employment

Bill and government has said that it will consult

with industry on the best way to address it.

BFPA is at the heart of those consultations

and is encouraging a ‘name and shame’ policy.

Conversations with members reveal a great deal

of support for what we are doing.

The details of exactly how these measures

will be implemented is still under discussion and

great care is being taken not to undo all the

good work that has been done to reduce the

regulatory and administrative burden on UK

companies at all levels – but the current culture

has to change. The current view is that if the

large tier one companies can be encouraged to

improve their performance through a mixture

of ‘carrot and stick’ regulation, the improvement

will ‘ripple-down’ the supply chain and improve

performance at all levels.

As Vince Cable, Secretary of State for

Business Innovation & Skills stated: ‘Some of the

options [being] explored are quite radical, and I

make no apology for that – the importance of

the issue demands it!’

Late payers beware – your days are

numbered.

Chris Buxton is CEO of the British Fluid Power Association - BFPA (incorporating the British Fluid Power Distributors Association – BFPDA). The BFPA represents hydraulic and pneumatic businesses commercially and technically throughout the UK. With some 240 distributors and manufacturers in membership the BFPA is a truly full-service trade association. www.bfpa.co.uk

Late payment

Chris Buxton

24 www.manufacturingtoday-europe.com

The Internet of Things (IoT) has

evolved significantly in the past few

years and has gained huge attention

across a range of industries, not

least in manufacturing. To this point, much of the

focus has been on IoT technologies that define

data transmission as well as those emerging

technology areas such as analytics. In reality,

few IoT implementations have put adequate

focus on defining a detailed sensor strategy that

concentrates on the collection of data. The value

derived from the entire IoT value chain can only

be as good as the first stage – data acquisition.

Therefore, it is imperative that manufacturers,

as well as other industries looking to adopt IoT

technology, create a smart sensor strategy at the

acquisition stage to ensure the insights collected

are of a high value.

Why bother with a sensor strategy?Typically, during an IoT implementation, sensor

deployment is outsourced to a third party vendor

who often implements the sensors. There are

chances of deployment without having a well-

defined and detailed strategy in place. This could

lead to two outcomes. Firstly, the quality of data

could be low when examined in the context

of the wider IoT and business strategy; or, the

parameters against which the sensors collect data

could be too detailed, thereby costing the business

a lot of capital and putting unnecessary pressure

on the other aspects of the IoT implementation.

To avoid this, manufacturers need to build a smart

sensor strategy based on four key aspects:

1. Define the parameters to be measuredThe surge of recent technological innovation

in the area of sensing has created a situation

where a huge number of parameters can now be

measured precisely and accurately. The availability

of high quality technologies tempts implementers

to measure data which is not crucial or, at times,

even redundant. Therefore it is important to

look at all of the possible parameters that can be

measured and determine which can actually add

value to the business

futureSensing the

Amarnath Shete gives his advice for defining a smart sensor strategy

2. Identify optimal data quality standardsSensor data quality has a significant downstream

impact and any problems encountered at the

start will ultimately impact on the final insight

drawn from the IoT value chain. While good

quality sensor data is important, a standard that

is beyond what is required will add extra costs

that are not required. There is a fine balance that

has to be maintained between quality and cost to

determine the optimal data quality standards for

the purpose of the IoT solution. There are now

sensor technologies available that can measure at

exceptionally high levels of precision but these do

come at a higher price premium.

3. Calculating frequency of data managementSome sensors could be used to measure defined

parameters continuously, whilst others could be

set to measure at set intervals. Again a balance

needs to be drawn between whether or not

continuous data measurement is required and the

amount of data that can be handled by the system

at any given time. Continuous measurement

generates millions of bytes of data per second,

www.manufacturingtoday-europe.com 25

an amount that could overwhelm a system if

it is not designed to handle that kind of data

measurement. This volume of data is not justifiable

if the parameters typically remain stable over a

long period of time, and can result in poor use

of data storage at a cost to the business. Hence

it is important that data is measured at the right

frequency.

4. Volume of sensors to be deployedAccording to conventional deployments,

companies tend to optimise the number of

sensors. However, this practice cannot fit all

scenarios. In some instances where sensors

are remotely located, sensor redundancy

must be taken into account. This involves the

implementation of ‘reserve’ sensors that can be

switched on should primary sensors fail. This can

help to minimise the costs of replacement as in

person visits may be difficult and/or costly when

sensors are deployed in remote areas. Of course,

in the manufacturing industry this is less likely to

occur than say in specific scenarios in energy and

utilities sector.

By taking into account these four steps when

determining a strategy to implement data

acquisition sensors, manufacturers can ensure that

the data they are feeding to the rest of the

loT value chain is of optimal quality and of the

best value. Given the scale of a typical IoT

implementation the impact of a smart sensor

strategy is very high. A fine balance of cost and

effectiveness has to be maintained, with sensor

strategies meticulously defined for the best results.

Amarnath Shete is consulting manager, Internet-of-Things Advisory Practice at Wipro Limited, a leading information technology, consulting and business process services company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of ‘Business through Technology’ - helping clients create successful and adaptive businesses. www.wipro.com

Sensors

Amarnath Shete

It is imperative that manufacturers, as well as other industries looking to adopt IoT technology, create a smart sensor strategy at the acquisition stage to ensure the insights collected are of a high value

26 www.manufacturingtoday-europe.com

The positive aspects of employee engagement are well documented. Yet in the manufacturing

industry, we still seem to struggle to achieve happy and productive employees. In a survey,

sponsored by Festo Training & Consulting, 63 per cent of manufacturers say that maintaining

morale is the biggest issue within the workplace, followed by employee engagement (53 per

cent). However, less than half of the respondents (46 per cent) measure employee engagement. The survey

also showed that the majority of managers spend approximately half of their time dealing with disengaged

employees. This is a double whammy that impacts on productivity.

Employee engagement makes the difference between keeping valued staff and losing them to

competitors. It creates a highly productive workplace and enables organisations to grow faster and more

sustainably than others. It’s what underpins the brand of organisations and contributes to becoming one

of the ‘Best Companies’ to work for. If there are no measurements in place there are five warning signs of

disengagement.

1. Poor retention of staffIf an organisation has a high turnover of staff, this could be a sign of disengagement. Ask the HR

department for figures for how many employees have left in recent years. Conducting exit interviews is an

important part of understanding the reasons why employees leave. This takes tact and diplomacy, as staff

are often reluctant to divulge the exact reasons. Perhaps it might be a poor manager, lack of reward and

recognition or slow career progression. Understanding these reasons can help combat churn in the future.

2. Lacklustre business performanceA perennial issue for business leaders is how to increase profits and turnover. Engaged employees are

positiveGetGary Wyles highlights the five signs of disengagement

Engaged employees directly impact the bottom line through increased levels of customer satisfaction, proactivity and innovation

www.manufacturingtoday-europe.com 27

more productive and can be the key to unlock

business success. Whether the organisation is

looking to develop new markets, launch new

products and services or introduce new processes,

all of these involve motivating staff to achieve

these goals. Engaged employees directly impact

the bottom line through increased levels of

customer satisfaction, proactivity and innovation.

3. Poor productivityWhile the desire to grow and expand is in place

for manufacturers, the industry suffers from a skills

gap. This means that productivity needs to be high

– usually summed up in the phrase ‘doing more

with less’.

According to the Office for National Statistics,

the UK’s output per hour is 21 percentage points

below the average for the rest of the major G7

industrialised economies in 2012, the widest

productivity gap since 1992.

4. Skills gapA recent EEF report1 found that, “There is an

increasing risk that growth plans will be restricted

because of problems accessing employees with

the required skills.” In Festo’s recent research, we

have found that 82 per cent of manufacturers are

suffering a skills shortage and 86 per cent say this

is likely to stay the same of get worse over the

next year. The largest skills gaps are in experienced

engineers (61 per cent), skilled shopfloor (57 per

cent), and multi-skilled engineers (40 per cent).

While employee engagement does not directly

lead to closing the skills gap, it will aid recruitment

of people and the retention of those already in

the organisation. This means that investment in

training up employees will be retained for the

benefit of the organisation.

5. Low levels of customer satisfactionA price driven strategy is one of the hardest

for UK manufacturers to adopt, due to tough

competition from new and emerging economies

that are focused on driving costs down. UK

manufacturers have to assess different ways to

compete. This might be through innovation and

new technologies, however, customer service and

satisfaction underpins all drives for growth.

There is a direct correlation between customer

satisfaction and employee engagement. A report

by the Hay Group2 says: “Businesses that have high

levels of engagement show customer satisfaction

scores 22 per cent higher than companies with

low levels of engagement. But companies that

both engage and enable employees demonstrate

a total increase in customer satisfaction of

54 per cent.”

Part of understanding successful practices

for employee engagement is the fundamental

realisation that the modern day workplace has

changed. Pay and perks have been replaced by

flexibility, self-realisation and work-life balance as

key motivators.

The first step to understanding employee

engagement is for leaders to assess the levels

in their own organisation. This might be the first

time that the views and opinions of employees

have been listened to. It can be tough and it can

be challenging. It is easy for issues to be glossed

over. Measurement is no good though if it’s just

for measurement’s sake, or for reaching a specific

target.

Allow people to tell managers what they think

and feed back to them. Leaders must be prepared

to identify priorities for action and when these are

going to be put in place.

Increasing employee engagement is not

something to be entered into lightly but it is

worth focusing on. High levels of employee

engagement will ensure the business goes from

strength to strength, outstripping the performance

of competitors, attracting the best talent and

becoming one of those companies that others

look at with admiration and, quite often, a touch

of envy. v

Recruitment

To find out more about employee engagement and why it is important, download the whitepaper Manage to Engage…, The role of managers in employee engagement, available from www.festo-didactic.co.uk/ee

Gary is managing director of Festo Limited and has been with the company for more than 25 years. Festo Training & Consulting specialises in the development of people, organisation and technology. Offering a range of open courses, structured development programmes and tailor-made, customer-specific projects, the business has over 40 years experience when it comes to training clients and helping them achieve their maximum productivity. For further information visit: www.festo-didactic.co.uk.

Gary Wyles

High levels of employee engagement will ensure the business goes from strength to strength, outstripping the performance of competitors, attracting the best talent and becoming one of those companies that others look at with admiration and, quite often, a touch of envy

1‘Skills for Growth: A more productive and flexible labour force’. EEF The Manufacturers’ Organisation2 ‘Tough decisions in a downturn don’t have to lead to disengaged employees’. The Hay Group. 2009

28 www.manufacturingtoday-europe.com

This needs to be set against an ERP sector which has seen wide ranging consolidation over

the past decade, inevitably leaving manufacturers with fewer products and vendors from

which to choose. Not only do many solutions now look similar, they often promise the same

level of functionality. The functionality considerations most often sought include real time Key

Performance Indicators (KPIs), Workflow Management, fully integrated Shop Floor Data Collection (SFDC),

Field Service Management (FSM) capabilities and seamless integration up and down the supply chain. It

goes without saying that the best solutions are expected to be built on the latest architecture and designed

to be future-proof.

Faced with this, a growing number of manufacturers have made a high priority out of working with

an UK author such as Exel. For some, such as Linecross, a full service supplier of innovative, high quality

engineered polymer solutions, it was the decisive factor.

As finance director David Austin explains: “We quickly realised that most of the solutions we reviewed

could probably do what we needed, which brought the focus onto the solution provider. An investment of

this nature involves making a long-term partnership/collaboration with a supplier, because once the system

is in you are reliant on them if anything goes wrong. We didn’t want a system developed by a couple of

guys in an office, nor did we want to deal with a large reseller of a US programme developed in India. We

wanted to work with a partner that shared our ethos, our approach and our passion for our business.”

He continues: “It was obvious from the outset that Exel not only was a similar size to ourselves but

also shared many of the same values. It was as passionate about its own products as we are to ours,

understood our business and was committed to developing its products on a long-term basis. The fact

Exel is also just down the road also helped,” adds Austin, “because if anything ever did go seriously wrong, I

could be down there right away until I got it resolved.”

Another key consideration is investing in a system that provides class leading levels of customisation

ERP-what should you be looking for?

Exel Computer Systems plc provides an insight into the most important factors manufacturers are taking into consideration when deciding on their ERP investment

An investment of this nature involves making a long-term partnership/collaboration with a supplier, because once the system is in you are reliant on them if anything goes wrong

www.manufacturingtoday-europe.com 29

allowing the best possible fit not just with existing

business processes but also the necessary

flexibility and agility to adapt in the future as

these business processes evolve. This was very

much the case for Kent Brushes, one of the UK’s

oldest companies and long-time user of Exel’s

ERP solution, EFACS E/8, as production manager

and IT director Steve Davis explains. “It is the

flexibility and customisability of EFACS E/8 that

remains the most valuable contribution to the

company’s current and ongoing success. It remains

as important as ever for our ERP system to be

easy to customise without going down the path

of bespoke. The ADAPT toolset that comes with

EFACS E/8 enables us to internally tailor the

system to our requirements and also quickly and

cost effectively make use of external consultants.”

While selecting a UK-based author and a

flexible, customisable ERP solution are clearly

important factors, so also is the ability to

successfully implement this quickly, efficiently

and with minimal disruption to the ongoing

nature of the business. For some manufacturers,

especially those without dedicated IT teams, this is

mission critical because a disruption in day-to-day

running could cause the company to go under.

However, what works for one company won’t

necessarily work for another, so what is central

is the need for a flexible, reliable implementation

approach that makes best use of the resource

of both vendor and manufacturer. For example,

Ondrives Ltd, a precision manufacturer of gears,

gearboxes, bearing housings and mechanical drive

components, opted for a very specific, in-house,

approach as sales director Andy Higgs explains.

“I called Exel and told them we would be going

live on April 1st 2011, which was only a matter of

a few weeks away. I then told everyone involved

at Ondrives they were going to have a headache

for a few weeks.” And go live the company did,

successfully, on April 1st, and while it undoubtedly

was hard work, Higgs credits the success to

“everyone pulling together, including the help we

received from Exel.”

It was a totally different scenario with Bennett

Opies, a leading manufacturer of quality pickles

and preserves enjoyed across the world. Business

development director Paul Fox explains why.

“With Exel we knew we would be building a

partnership directly with the authors of the

software – those most knowledgeable about

the system – and this proved invaluable during

our implementation.” This was because of Opies’

recognition of the value of the right approach to

training. Not only did senior management attend

in-depth training at Exel’s dedicated training

centre, Exel provided an onsite consultant that

worked directly at a hands-on level with each

EFACS user.

This had a much greater benefit than simply

ensuring that the implementation went smoothly,

as Fox explains. “Many times the Exel consultant

would make suggestions about doing things

differently which had a real impact on our overall

business approach. This was exactly what we

needed and as a result, we ended up with a

business in much better shape than when we

began and much better than we expected.”

Finally there are businesses, which have more

than just one company to take into consideration.

As well as seamless inter-company communication,

a key requirement here is accuracy and visibility

of data not just at a company but group wide

level. Leading manufacturers and suppliers of

commercial building interiors Laidlaw Interiors

Group has first-hand experience of this.

Generating sales of £130m from its 1500 staff in

35 locations in the UK and overseas, the group

initially was selecting an ERP system for Komfort,

one of the group companies with a £45m

turnover.

Ian Govier is head of IT & business systems for

the group and explains just how important this

was. “EFACS E/8 from Exel had been identified as

the best ERP solution, not just for Komfort but for

the entire group. At the heart of this decision was

the fact that EFACS has a hierarchical framework

structure ideal for individual companies working

within a combined group. EFACS also provides a

built-in workflow facility that enables companies

to automatically interact with each other while the

powerful customisation facilities make it possible

for the same solution to be tailored to the specific

needs of each company. Irrespective of what the

user sees, everything across the entire group will

ultimately be driven by EFACS E/8 in the backend.”

Modern ERP has evolved to the extent that

many systems, if implemented correctly, now

have the potential to interact with not just every

area within a manufacturing enterprise, but

increasingly outside the physical constraints of the

business to suppliers and customers alike. While

every manufacturer will have their own unique

requirements, it is clear that to get the best from

any ERP investment, companies need to recognise

this and make any decision based on a holistic

business perspective and not an IT, functionality-

based set of considerations. v

www.exel.co.uk

ERP

30 www.manufacturingtoday-europe.com

Succeeding with Continuous

Improvement has proven harder than

expected for many organisations. One

big reason is that there are a few

challenges most organisations sooner or later

encounter and where your intuitive responses

actually prevent you from succeeding.

Continuous Improvement Paradox #1 – Simplicity A common reaction to failed improvement

initiatives is going for a more advanced solution.

Go the other way! Simplicity will stand the test

of time.

For your organisation to succeed with

Continuous Improvement you have to make

it a natural part of the everyday work of

every employee. For that to become reality

your approach can’t be complicated. If it is,

new employees will need special training to

understand your improvement method, you

will need additional support resources to keep

progressing and backing it up will demand a

great deal of your managers’ time.

Time is probably your most limited resource,

and in the long run you won’t afford not to use

everyone’s creativity. Kill two birds with one

stone, keep it simple to both save time and to

give everyone a chance to contribute.

Continuous Improvement Paradox #2 – Focus A common reaction to recurring problems is

bombarding them with solutions. Go the other

way! Focus and dig deeper to find the real cause

of the problem.

Imagine what would happen if I took you and

ten of your colleagues to a junkyard and asked

you to build whatever you wanted.

The most common reaction would probably

be to just stand there looking around, not sure

what to do. Imagine instead that I asked you to

build a vehicle that could transport all of you

at least ten yards without any of you touching

the ground. Now your heads would probably

fill with images of wheels, axles, planks to stand

systemThe right

The five continuous improvement paradoxes. By Joakim Ahlström

on, and steering wheels to guide you along the

way. Instantly you would become more creative

and could start to organise and divide the work

among you. Some people think that creativity

grows best when all boundaries are removed.

The opposite is true. When we limit and clarify

the task it becomes easier for everyone to

contribute.

The same principle applies to problem solving.

When you zoom in, dig deeper, divide into

smaller pieces and discard the unessential the

‘aha’ moment will come, and that’s when you

find easy-to-implement solutions with great

impact.

Continuous Improvement Paradox #3 – Visualisation A common reaction to lack of initiative is

pointing out problems that need to be fixed.

Go the other way! Visualise good examples and

positive results first to inspire action.

In an environment where managers constantly

tell or show people in what way they are

organisation. There is only one problem with

them. They kill creativity! If there is an unmet

need to be listened to in an organisation, an idea

campaign might create a surge of ideas, a surge

so big that only a fraction of all ideas can be

implemented. This means the majority of people

will get yet another confirmation that no one

listens to their ideas, and next time they are less

likely to contribute.

A systematic approach should not only

make sure that improvements are made and

problems are solved daily but also increase the

improvement competence of your organisation

every day. When you have a SYSTEM like that

you will Save Yourself Stress, Time, Energy and

Money!

www.manufacturingtoday-europe.com 31

inadequate nobody wants to be the centre of

attention. To draw focus away from themselves,

people will start pointing out faults they see

around them instead, and before you know it

you have developed a culture of blame.

If you start by visualising good examples and

positive results instead you will create a positive

atmosphere and give people a chance to adopt

a behaviour worthy of praise. But even more

importantly, when you continually highlight

progress made and focus on the strengths

people have you also create a safe environment

where improvement potential can be expressed

without people becoming defensive.

Continuous Improvement Paradox #4 – Ownership A common reaction in crucial situations is

adopting a command and control approach. Go

the other way! Ownership is a prerequisite for

using one’s full potential.

If you are told exactly what to do when it

really matters you will start to question your

own ability to handle difficult situations. What’s

worse, when you are confronted with challenges

in the future it is likely that your insecurity

prevents you from taking good decisions or even

acting at all.

For a manager it’s a good idea to monitor

how many questions he or she asks compared

with the number of statements he or she makes.

What is your question-statement ratio? Do you

try to be more interested or more interesting?

If you double your question-statement ratio, you

will both learn more and get more out of your

colleagues.

Continuous Improvement Paradox #5 – System A common reaction to shortage of

improvement ideas is launching an idea

campaign. Go the other way! Only a systematic

approach builds organisational improvement

competence.

Running an idea campaign is a popular

method for tapping into the creativity of an

Continuous improvement

Joakim Ahlstöm is the author of How to Succeed with Continuous Improvement: A Primer for Becoming the Best in the World, available at Amazon.or more info, visit http://www.SucceedwithCI.com.

Joakim Ahlstöm

George Utz Ltd, part of the Utz Group, is expanding

its Alfreton factory to meet rising demand

Breaking the mould

George Utz

George Utz Ltd

Products:

Material handling products Sites:

UK, Switzerland, Germany, Poland, France, the US and China

Employees:Aprox. 800

www.utzgroup.com

www.manufacturingtoday-europe.com 33

W ith a history dating back nearly 70 years, the

Utz Group has developed a market-leading

reputation in the design, development and

manufacture of both custom and standardised

material handling products in plastic. These

are boxes, containers, pallets and returnable

transport packaging (RTP) for the global market.

The company was founded as Georg Utz, Toolmakers in Zürich,

Switzerland by Mr Georg Utz during 1947 and today remains a successful

family owned company with production facilities in Switzerland, Germany,

the UK, France, Poland, the US and China. George Utz Ltd was established as

the UK branch with a sales office of the group during 1990 in Alfreton, UK

and continues in the tradition of delivering off-the-shelf and bespoke material

handling solutions across the automotive, chemistry and pharmaceutical, food,

textiles, postal, warehouse and logistic, electronics and retail and distribution

industries.

Along with the other associated members of the wider Utz Group,

George Utz Ltd is able to act independently to respond to the needs of the

local market, while enjoying the financial support and stability of its healthy

parent company. “The Group has a turn over of around 200 million euros

and approximately up to ten per cent of this is reinvested directly into the

business for new facilities, equipment and technologies,” explains George

Utz Ltd general manager, Carsten Diekmann. “The main market focus for

Epsilon technology for George UtzSuperior cooling technology for maximum efficiency: George Utz relies on German cooling system manufacturer Reisner GmbH to support its injection molding production. The Reisner ‘Epsilon’ cooling system is equipped with Turbocor compressors and a unique control unit. It reliably provides the needed cooling capacity while operating on a minimum consumption of energy. This combination of operational safety and economic efficiency has proved extremely successful for two years now.

ReinseR

need additional capacity and new machinery and

equipment as well as to reduce lead-time, to be

leaner and to be more efficient because customers

tend to not want to wait anymore. They need

a product today and they want it more or less

tomorrow.”

During March 2014 George Utz Ltd announced

a £3.5 million expansion to its Alfreton factory

including increased manufacturing space, offices

and warehousing to meet the rising demand for

of-the-shelf products and bespoke RTP solutions.

The increased manufacturing space will house

a new 2700-tonne injection-moulding machine

to complement the UK companies existing

650-tonne to 1000-tonne machine range. “Our

plastic containers are primarily used in the retail and

automotive markets where they are used to move

parts around supply chain company’s distribution

centres. The UK is moving in the right direction and,

although it is still tough, there are lots of positive

signals. We make approximately a million parts a year

and with this investment, we are looking to double

our output in the future. The building work should

be completed by Christmas and then the additional

injection moulding and vacuum forming equipment

can be installed,” Carsten elaborates.

34 www.manufacturingtoday-europe.com

the group is Europe, the US and China and all of

these areas are currently developing well. The need

for logistics is growing and we follow our customers

and grow with them so we offer the same good

service throughout the entire business. Presently the

group works with nearly 130 injection and vacuum

moulding machines and converts around 50,000

tonnes of raw materials into products. Investment

is mainly in machinery and injection moulding tools

where we are investing in new product families in

Europe and globally.”

Within the UK specifically, George Utz Ltd is

preparing to double its turnover by 2020 and

to capitalise on the momentum it has built over

the years. “Within the UK we have experienced

constant growth and during the last ten years we

won considerably new customers within England

and Ireland with new innovations and products. In

fact each year we deliver between nine and ten new

products that are developed inline with customers’

needs and also for the general market,” Carsten says.

“We have a strong growth strategy in place and we

George Utz

inotec Barcode Security are Europe‘s leading Auto ID label specialists, supplying George Utz as their chosen label partner for ten years and supporting their significant investment in in-mould technology.inotec‘s in-mould labels, allow full-colour logos and barcodes, to be injection moulded into the wall of a container, eliminating the need for costly post mould, printing or label application processes. The permanent bond offers a smooth edgeless surface, highly resistant to heat, sunlight and totally waterproof.

Inotec UK

www.manufacturingtoday-europe.com 35

The KraussMaffei Group is amongst the world’s leading suppliers of machinery and systems for producing and processing plastics and rubber. Its products and services cover the whole spectrum of injection and reaction moulding and extrusion technology, giving the company a unique position in the industry. The KraussMaffei Group is innovation powered, supplying its products, processes and services as standard or custom solutions which deliver sustained added value along the customer’s value adding chain. The company markets its offering under the KraussMaffei, KraussMaffei Berstorff and Netstal brands to customers in the automotive, packaging, medical, construction, electrical, electronics and home appliance industries.

THE KraussMaffEi Group

“We have a core strategy for really high

quality machinery where we invest in additional

equipment that is also more energy efficient and

environmentally friendly. Within the Group the

main companies that supply our injection moulding

equipment are KraussMaffei from Germany and

Engel from Austria,” he continues.

Environmental concerns and responsible

operation are at the core of how George Utz Ltd

conducts its business and interacts with its customers.

“We are audited in the UK for our environmental

management system, which is compliant under

ISO 14001,” Carsten details. “We recycle the material

that we use and we also promise customers that

once products have reached the end of their life

cycle, that we will take the products back and recycle

it to use the raw materials in new production runs.

Furthermore we also use our own production

rejected heat to heat the factory and our offices so

environmental concerns are something that have

been quite important to us for many years.”

As well as increasing the productivity of the

company through greater numbers of machines

and more efficient energy management, the new

equipment due to go into operation in 2015 will

allow George Utz Ltd to enter in a new market with

a new plastic pallet as an effective alternative to the

traditional wooden design. “We will enter into new

markets through the creation of 1200 millimetre by

1000 millimetre dimension plastic pallet for the UK

market, with the additional advantage that we will be

the first UK plastic pallet producer and we will have

the benefit of avoiding logistical costs because we will

manufacture here in Derbyshire,” Carsten says. “The

pallet will be produced using a new large injection-

moulding machine. An additional 1000-tonne

injection-moulding machine for RTP products will

arrive at the end of 2014, supplied by KraussMaffei

from Germany.”

In terms of the advantages of plastic pallets over

wooden pallets, Carsten observes: “The lifetime of

a plastic pallet is longer and the quality is very high.

The dimensions can be guaranteed, which is very

important for automated warehouses and there is

not a problem with water or oil becoming absorbed

into plastic pallets. The main advantage is the lower

Total Cost of Ownership (TCO) of the pallet and

in terms of health and safety plastic pallets does not

splinter in the way that wooden ones can, which is

very important in food processes and distribution.”

As George Utz Ltd and indeed the wider Utz

Group seeks to expand its market share and grow

the business, its will continue to focus on increased

capacity, efficient fabrication and new products.

However, core to its strategy is also it commitment

to long-term customer relationships as Carsten

concludes: “We are committed to develop the

company further and offer our customers the

security to know that we will produce locally for the

local markets and remain on hand for the next ten

to 20 years, so it is real long-term investment.”

the post-war years and the range and scope of

machinery that my grandfather developed was

quite incredible,” says Tom Teagle, sales director,

continuing: “He actually developed his own two-

stroke engine that was fitted into hedge trimmers

and lawn mowers and all kinds of different

handheld machinery. We actually made some of

the first mounted broadcasters and spreaders in

the world.” The business has manufactured a range

of products, from fertiliser spreaders, to the Titan

range of trailers and the Toucan forage harvester.

In the mid 1980’s Teagle Machining developed

its first machine for processing straw to be used

for bedding livestock. Named the Tomahawk 100,

the range has become the cornerstone of the

company and makes up a large proportion of

its turnover. The Tomahawk range is made of the

widest variety of feeder bedders available from any

manufacturer in the world with over 30 unique

Teagle Machinery Ltd is very dedicated to developing

innovative new products and getting them to market effectively

Generations on

Teagle Machinery

Teagle Machinery Ltd

Products:

Agricultural plant and machinery Sites:Global

Employees:150

www.teagle.co.uk

www.manufacturingtoday-europe.com 37

In 2013 the family-run business Teagle

Machinery Ltd celebrated its 70th

anniversary, which was born from a long

history of running farms. With a keen

interest in manufacturing machinery, Tom

Teagle Snr started off supplying local

farmers in the Cornish area with equipment such

as tip carts, manufacturing more sophisticated

machinery as the business developed. As interest

grew, the decision was made to sell off parts of

the family farm to invest in the infrastructure

needed to make the machinery. Today, the original

farmhouse on the site has become a conference

centre for training distributors, dealers and service

teams. “With six members of the family involved

daily in the company, we try very hard as we grow

to retain that family business ethos, which is really

important to all our customers.

“There was a real boom for mechanisation in

tow

cent of our workforce is focused on research

and development. It is also important to get the

product to market effectively and whilst the UK

is a very mature industry we are successfully

developing it further, finding new markets and

developing new products. Recent growth has been

38 www.manufacturingtoday-europe.com

models; these machines are designed to deliver

comfort to livestock and to ensure the correct

preparation of feed and performance.

“One of the most important strands to our

success has been ensuring that we offer innovative

and reliable products, and to achieve this ten per

Teagle Machinery

www.manufacturingtoday-europe.com 39

In addition to technology within agriculture moving at a fast pace, farming practises are also changing quickly, and it is really important that the machinery we are offering to the market is in tune with the demand from the farmers

‘‘on the back of enormous investment in developing

export sales, which started 20 years ago when

my father began focusing on the export trade,”

explains Tom. Over the last six years, this drive has

been further progressed, seeing in the employment

of a US based salesman and a European sales

manager, to which Tom adds: “When working in

export markets it is important to have a structured

aftermarket service, whether that is servicing or

spare parts and we ensure that these aspects of

the business are first class.”

One of the key considerations for the company

is addressing the difficult question of how to

protect designs and intellectual property from

being copied, particularly when selling to a global

market. “The way to ensure that it doesn’t become

a problem is to make sure that by the time

someone has copied one design we are already

onto the next one. In addition to technology within

agriculture moving at a fast pace, farming practises

are also changing quickly, and it is really important

that the machinery we are offering to the market

is in tune with the demand from the farmers,”

says Tom. Through ongoing research the business

is always looking for ways to offer machinery to

farmers to facilitate this to make sure that livestock

are comfortable, productive and ultimately, for the

farmer, that they are profitable.

As a family company it reinvests heavily to

ensure a good foundation for future growth. Every

year over the last six years there has been a major

capital project delivered on the site, from a new

hall for precision machining, to a shot blasting and

powder coating facility, the redevelopment of the

farmhouse, and a new production hall specifically

for manufacturing larger machinery. “As farms grow

larger, so do tractors, and ultimately machinery

too. In 2015 we will open an additional building to

accommodate a restructuring of the factory layout.

Our focus has been on utilising the space we have

more effectively to reach new potential.

“We have also established what is essentially a

strategic partner arrangement, where we work

hand-in-hand with businesses specialising in

electronics and hydraulics, both very sophisticated

systems,” points out Tom, explaining that this

ensures the ability to keep up with the fast

moving pace of the technology. Recognising the

challenge of recruiting individuals with the correct

skill base to succeed within the manufacturing

industry, the company works closely with Harper

Adams Agricultural University, and also provides

apprenticeship-training schemes, in all aspects of

the business.

During the first three quarters of 2014 the

product range has been sold to over 35 countries

worldwide, trading to countries such as Germany,

Poland, Czech Republic and Ukraine, as well as

North America, South Africa, Japan, Australia and

everywhere in between. Commenting, Tom says:

“The strength this this give us is that we can spot

trends that are taking place and develop machinery

to take to other parts of the world as the trend

emerges. That presence worldwide is an enormous

strength for us.” The company’s leading position

is highlighted by the 50 per cent market-share in

the UK. “Of course we have to work very hard to

stay in that position and almost every year we are

releasing a new product. We need to maintain the

focus on our home market because it provides

us with a significant ability to continue with our

export activities. We are continuing to put in

additional resources and recruiting salesmen to

be resident in export regions, and by localising

our offering, and developing machinery specifically

for those markets we are going to substantially

develop our turnover,” he adds.

Over the past five years not only has the

business directly grown its manufacturing

capabilities but it has also invested heavily in

renewable energy sources such as PV and wind

power and today 50 per cent of electricity used

on the site comes from renewable sources. “We

have a really strong appetite for growth and

nobody on the board is satisfied with sitting still.

We are always looking to develop and expand

what we offer to our customers. With 15,000

sqm of production halls on the site we have a

strong manufacturing ethos and invest heavily in

precision machining centres where we make our

own hydraulic rams and gearboxes. In total, 85

per cent of what we sell is manufactured on site,

ensuring we can maintain good quality control. We

have also invested in a new website, delivered in

11 different languages. With around 90 per cent of

our customers researching products on-line before

they make a purchase this is increasingly important.

In addition the new site allows our dealers and

product owners to interact with us more easily, so

developing stronger relationships. It is important

that people feel comfortable with the product that

they are investing in,” concludes Tom.

40 www.manufacturingtoday-europe.com

Teagle Machinery

and assembly, welding, balancing and painting

(every desired colour or paint specification) are

all undertaken with German craftsmanship under

a lean philosophy.

“Furthermore, a focus on continuously

reducing waste in the process and on avoiding

stagnation results in a top quality product with

shorter lead times. We can proudly say that

we are successfully implementing automotive

lean thinking, in a low volume and project

environment.”

Hubert also highlighted that alongside

the manufacture of driveshafts, Spicer

Gelenkwellenbau offers inspection on site

everywhere in the world with GWB engineering

capabilities, as well as shaft repairs, which are

undertaken in its service workshops or the

workshop of a certified distributor with original

GWB parts. “Over the past years we have

The GWB brand of industrial driveshafts from Spicer Gelenkwellenbau is

recognised across the world

Drive

lifefor

Spicer Gelenkwellenbau

Spicer Gelenkwellenbau

Products:

Industrial driveshaftsSites:

Several, globallyEmployees:

150 in Germany, 600 worldwide

www.gwbdriveshaft.com

www.manufacturingtoday-europe.com 41

Spicer Gelenkwellenbau is part

of Dana, and for almost seven

decades it has focused on the

sales, engineering, manufacturing,

distribution and service of heavy

driveshafts for industrial applications under the

brand name GWB. Hubert Lepoudre, MD of

Spicer Gelenkwellenbau, explained that the

company’s facility in Altenessen, Germany has

worldwide sales and engineering responsibilities,

but still performs the bulk of its machining and

assembly of driveshafts in Germany. “The core of

our manufacturing capabilities remain German,”

he confirmed. “With a material content below

50 per cent of the COM, it is a fairly vertical

integrated plant that does both machining and

assembly. In-house we machine our split design

yokes, complete journal crosses, and length

compensations on dedicated machines. Machining

Our driveshafts are designed for infinite life,

not just on paper, but also in genuine working

situations.”

GWB also continues to strengthen its global

presence by closely supporting and co-operating

with a number of approved first class value-

added distributors that can deliver parts and local

service. These include GKN, MSI, JP and DLS.

Given this overall dedication to excellence

across the board it is no surprise that customers

keep returning to the GWB brand. “Our

clients value a robust solution, that is German

engineered towards the application and with the

guaranteed quality that comes with GWB,” said

Hubert. “They are supported by a vast network

of trained and certified value added distributors

who are close to the customer, and this means

that customers can focus on the production

process, knowing that GWB will support them

with a product that assures the best cost of life

for his installation.”

Going forward into the New Year, the GWB

brand looks set to remain at the forefront of

the industry. “Markets are not expected to have

a spectacular growth over the next couple of

years, but GWB is well equipped to continue to

position itself as a market leader in its territories,

as well as continue to expand its product and

service offering, reduce its lead times and being a

customer oriented solution provider,” said Hubert.

These plans are reinforced by the skills and

support of a very successful parent company –

Dana. “We belong to the Off-Highway division

of Dana,” added Hubert. “Being part of a

multinational like Dana is an advantage for a 170

42 www.manufacturingtoday-europe.com

Spicer Gelenkwellenbau

strengthened this position to deliver aftersales

service with genuine GWB knowledge from this

location, as well as having a manufacturing and

service site in China,” he said. “But this is not

the end of our value proposition. We want to

expand our support service towards preventative

services, and even play our role in further

development of smart monitoring, to enhance

predictive services.”

One of the strongest foundations of Spicer

Gelenkwellenbau is the excellent market

reputation of the GWB industrial driveshaft,

which can be considered a best buy when looking

at total cost of ownership. It is this product, in

combination with added value services that really

creates such an attractive market proposition.

“GWB does not only deliver a standard

driveshaft,” said Hubert. “We pride ourselves in

offering best solutions for the customer, based

on our in-depth knowledge of the applications in

which the driveshafts operate. We are the original

developer of the split eye design, which facilitates

assembly and disassembly of the knuckles. Our

service free journal crosses dramatically reduce

the intervals between lubrication, thus further

reducing the cost of ownership for the end user.

www.manufacturingtoday-europe.com 43

The sourcing knowledge and combined sourcing purchasing power, gives us a competitive advantage, and the global presence gives us access to markets in regions where we were not active in before

‘‘

people plant, playing in a global environment.

Given the fact that Dana believes in ‘local

ownership’, we still fully own our strategy and

future, and maintain our agility to allow us to

quickly react in the market.

“Dana however brings to us a lot of processes

that we independently could not roll out.

They bring us experienced support in lean

manufacturing (with access to professional

lean tools, and specialists that support us with

subject matter expertise to drive continuous

improvement), HR processes, IT, program

management, VA/VE and so on.”

He concluded: “Dana gives us access to the

best engineering resources in an innovation

oriented multinational. The sourcing knowledge

and combined sourcing purchasing power, gives us

a competitive advantage, and the global presence

gives us access to markets in regions where we

were not active in before.”

purest and finest ingredients. Offering customers a

range of candles, reed diffusers, room mists, scented

sachets and refresher oils from its own Wax Lyrical

collections, the company’s products all emphasise its

commitment to the best ingredients and materials,

stunning designs and bold fragrances. Furthermore,

the company has partnered with five prestigious

brands, the Royal Horticultural Society, Jelly Belly,

Fired Earth, Julie Dodsworth and Churchill China

(UK) Limited Hidden World; by manufacturing

these products under license, the company has

further strengthened its appeal to a broad range of

Following a major change in its business model in 2008,

Wax Lyrical has transformed itself from an ailing organisation

to a major success

More than

scentscommon

Wax Lyrical

Wax Lyrical

Products:

Luxury scented candles, reed diffusers and private label collections

Sites:Cumbria

Employees:130

www.wax-lyrical.com

www.manufacturingtoday-europe.com 45

Based in the scenic Lake

District, home fragancing

company Wax Lyrical’s

team of 130 skilled and

dedicated employees strive

to produce and market

more than 15 million high quality products to its

global customer base. Perfecting its innovative

and unique products in Ulverston, Cumbria, the

company collaborates with the best fragrance

houses in Europe to ensure customers receive

true to life fragrances that come from the

managing director Joanne Barber discusses: “The

Williams family had been using candles in their

hotel and restaurant and, upon realising that there

was an opportunity in the market place, began

manufacturing candles in 1980. Following business

growth, the company, then known as Nice Things,

moved to our current site in 1990, which was

opened by Princess Diana. The company’s name

46 www.manufacturingtoday-europe.com

consumer groups.

Originally established in 1980 by the Williams

family when they noticed potential in the home

fragrancing market while working as hotelier and

restaurateurs, the company has exchanged hands

over the years and faced financial difficulties

before its was acquired and rebranded by

owner and chairman Mike Armstead in 2006, as

Wax Lyrical

Fragrance Oils is extremely proud to be a key fragrance supplier to Wax Lyrical. We have worked alongside them since their establishment and during this time, we have gained a unique insight into their growth and success. We have an in depth understanding of the Wax Lyrical brand which enables us to create bespoke fragrances that are tailored to suit the company’s evolving consumer base. Our ongoing partnership is built on trust and loyalty and the secret of our joint success is the fact that we share many of the same philosophies and values. Equally important is our mutual passion for the luxurious world of home fragrance.

Fragrance oils (international) ltd

www.manufacturingtoday-europe.com 47

was changed again to Colony Gift Corporation

and was later sold to Blyth Industries, an

American candle manufacturer. While in Blyth

Industries’ hands the company became more

of an importer and began to lose money to

the point that by the time Mike acquired it the

company was on the brink of administration. It

was in dire need of a turnaround, but we have

now been profitable for five years, employ

130 people and are market leaders for the

manufacturing of home fragrances in the UK.”

Renamed Wax Lyrical in 2010, the company

today is a true success story for British

manufacturing, supplying many of the major

retailers in the UK and across the globe with

its luxury scented products. By rejecting the

previous owners decision to import 65 to 70

per cent of its goods from the Far East and India,

the dynamic and innovative firm has reaped

the benefits of manufacturing 95 per cent of its

products in-house. Indeed, by bringing the focus

back to UK manufacturing and exporting, the

company has not only enjoyed major success in

a struggling economy, but has also enhanced its

control over issues such as flexibility and product

quality, as Joanne discusses: “Reverting from

importing to exporting was a key aspect to our

successful turnaround, a strategic decision we

made in 2006 when most companies were still

sourcing from locations such as the Far East and

China. It was an unusual choice to make back

then, but it has become more typical over recent

years for companies to say they are a proud UK

manufacturer.

“This decision enabled us to shorten our

lead times and ensure quality to our customers;

Continental Bottle Company ltd

Owner and chairman Mike Armstead

Continental Bottle Company’s (CBC) vision is to provide their customers with the highest level of customer service and be recognised in the home fragrance, perfume, and cosmetics market as the first choice for the supply of candle glass, glass bottles and quality closures.CBC strives to create new products and ranges to enhance the ever changing requirements of the industry.Its mission is to be the first choice for glassware, delivering products of outstanding quality and great service through Its commitment, hard work and dedication to meet their customers’ requirements.CBC serves both large and small companies nationally and internationally, and the company attributes its success to the fact that it offers a wide range of exceedingly flexible services. Its full decoration service includes screen-printing, frosting, spraying, hot foil stamping, sublimation and metallisation. This can be supplied on bottles or glasses for wax fill.Future investment in new innovative projects and designs ensures that CBC remains at the forefront of the industry.CBC has a wealth of experience and design know-how contributing to quality and excellence in all parts of the design process. CBC is here as your first choice on custom projects to complement your packaging requirements.

we are the first home fragrance factory to be

awarded the British Retail Consortium quality

approval, which we have had for seven years

now. This was a real accolade for us, but our

core focus was on enhancing our manufacturing

capabilities, IT and management information

and planning systems to ensure we could drive

productivity and double our production rate. For

example, tealights were not a product that we

could previously manufacture, but we now have

48 www.manufacturingtoday-europe.com

Wax Lyrical

Raiseprint packaging is a specialist in design and production of bespoke, printed, die cut packaging, encompassing everything from blister cards to gift boxes, in solid board and micro flutes. All Raiseprint’s packaging is designed and manufactured in the UK, offering quality, flexibility and control. These are important underpinnings when working with retail driven clients like Wax Lyrical, who need to be responsive to their market’s needs. Over the last four years, Raiseprint and Wax Lyrical have worked closely to align themselves, making the best of every opportunity.

The RaisepRinT GRoup

www.modernutilitymanagement.com 49

Managing director Joanne Barber

the machinery in-house; this is also the case with our reed diffuser

range.”

Joanne notes that other strategies used by the company to

ensure further growth included investment into training for staff

and developing stronger relationships with more locally based

suppliers: “We weren’t just focused on bringing back manufacturing

to the UK, we also looked at our supply base in the UK and

focused on enhancing these relationships to allow for a more short

and flexible lead time. We now work closely with our suppliers at

all levels.”

With 35 per cent of its products sent abroad to emerging

markets such as Russia, the Middle East and Europe, Wax Lyrical

is keen to continue its success story with further expansion both

in the UK and across the world. Affirming that a growth plan is in

place for the company’s ongoing growth, Joanne concludes: “We

want to remain a key player in the UK and global market place and

be a strong, profitable company. To make this aim a reality we will

invest further into our factory, which will double our output on our

tealight line and potentially result in 60-70 per cent growth in our

wax filling lines too. Investment is key to retaining our status as a

market leader.”

We want to remain a key player in the UK and global market place and be a strong, profitable company. To make this aim a reality we will invest further into our factory, which will double our output on our tealight line and potentially result in 60-70 per cent growth in our wax filling lines too. Investment is key to retaining our status as a market leader

‘‘

50 www.manufacturingtoday-europe.com

the-art fabrication and testing to ensure all lift trucks

exceed application requirements. The processes the

utilised by the organisation to ensure world-class

manufacturing include:

l Certified ISO 9001 – Global Registration

l Certified ISO 14001 – Environmental

l Demand Flow Technology (DFT)

l 100 per cent product audits

l Corrective and Preventative Action Process

(CAPA)

Using computer-based and physical testing,

each finished lift truck must conform to a rigorous

standard of excellence that checks for stability, noise

and vibration, ergonomic functioning, service access,

performance and much more. In addition, each

lift truck is subjected to an exhaustive battery of

physical and field tests designed to ensure that every

component is built to last.

In order to maintain a leading position in the

market, NMHG appreciates that it has to ensure

its products continue to meet the increasingly

demanding needs of its clients. As a result, the

company’s product development strategy is

informed, on going and proactive. Its wide global

presence, among the largest of all material handling

manufacturers, enables NMHG to commit the

resources necessary to ensure its lift trucks are some

of the most innovative in the industry.

Strategically located technology development

centres in the United States, Italy, India, The

Netherlands, the United Kingdom, and Japan, enable

Since 1989, NACCO Materials Handling Group (NMHG)

has provided the strategic leader-ship and global support behind

Hyster and Yale lift trucks

The best

businessin the

NACCO Materials Handling Group

NACCO Materials Handling Group (NMHG)

Products:Lift trucks

Sites:Global

Employees:Approx: 600 in UK

www.hyster-yale.com

www.manufacturingtoday-europe.com 51

NACCO Materials Handling

Group (NMHG) is the

operating company of

Hyster-Yale Materials

Handling, Inc. The primary

NMHG brands include

Hyster and Yale lift trucks, two of the most respected

names in the materials handling industry. Together, the

Hyster and Yale brands maintain one of the leading

market share positions, both in the Americas and

worldwide.

NMHG’s history has been marked by innovation

in the Hyster and Yale brands that have helped

power the industry forward. Yale was responsible for

introducing the industry’s first battery-powered, low-

lift platform truck, the first fluid coupling transmission,

and the first hypoid drive axle. Hyster Company’s

MONOTROL pedal for speed and direction control

was revolutionary when patented and introduced to

the industry in 1959 and is still in production today.

Today at Hyster-Yale that spirit of innovation is

alive and well as NMHG works to bring new and

better technologies to market. This includes the use

of hydrogen fuel-cell batteries and a new generation

of electric counterbalance trucks.

The products created by NMHG are crafted at

12 world-class, ISO-certified manufacturing facilities

located in North America, South America, Europe

and Asia. Its global manufacturing network enables

NMHG to remain responsive to regional and even

local needs in the materials handling markets.

Each NMHG manufacturing site uses state-of-

Kubota is a total solutions provider in the manufacture of world class oil and water cooled diesel and duel fuel engines. Available to original equipment manufacturers (OEMs) and dealers, the company’s range of quality, highly durable and innovative engines are renowned across the globe for their exceptional performance. Designed to provide maximum fuel efficiency and minimal noise and vibration levels, Kubota engines feature the latest in technological advancements to meet and exceed emissions regulations. It’s range of engines are used in a wide range of applications including plant equipment, power generation and industrial equipment and include either Diesel Oxidation Catalyst (DOC) technology or Diesel Particulate Filters (DPF) as an after-treatment device to reduce emissions.

Kubota EnginEs

52 www.manufacturingtoday-europe.com

www.manufacturingtoday-europe.com 53

NACCO Materials Handling Group

NMHG to be responsive to regional product needs.

NMHG’s talented and experienced design and test

engineers have the industry’s most advanced design

tools and processes at their fingertips.

At each development centre, input from Hyster

and Yale brand managers and regional industry

consultants is combined with global trends and voice-

of-the-customer research. From concept to launch,

every new product follows a carefully structured

and rigorous six-stage development process. Each

step must confirm that the product will deliver all

the intended benefits to its future users. The result is

a level of toughness and reliability clients can count

on, from one of the most capable and innovative

material handling lift truck manufacturers in the

world.

As a result of its dedication to innovation, the

portfolio of materials handling equipment that

NMHG designs, engineers, manufactures and sells is

among the most comprehensive in the industry. It

covers hundreds of end-user applications in more

than 700 industries. The product range now includes

a full range of electric and internal combustion

engine lift trucks for nearly all indoor and outdoor

applications. From narrow aisle warehouse trucks

to the toughest cargo handling equipment, the

organisation’s counterbalanced lift trucks are

recognised as some of the most productive in the

world.

Furthermore, NMHG recognises that lift truck

users don’t always have identical needs. There are

hundreds of different industries and applications and

different intensities with which users must operate

their equipment. For that reason, NMHG offers the

choice between utility, standard and premium in

some of its lift truck models.

Premium trucks, now offered in a number of

internal combustion engine (ICE) and electric-

powered lift trucks, offer performance and durability

designed for the toughest and most demanding

operations. These trucks, such as the Hyster Fortis

and Fortens and the Yale Veracitor, offer a wide array

of special attachments and customisable features.

Standard trucks, now offered in some lifting

capacities of ICE trucks and electric trucks with

basic battery sizes, are designed for the most typical

applications and lift truck usage.

Finally, NMHG began introducing UTILEV brand

utility forklift trucks in 2011. These lift trucks, offered

currently in limited lifting capacities of ICE trucks with

pneumatic tires, offers a truck for lower intensity

operating environments, particularly without the

need for special attachments.

Whether Hyster, Yale, or UTILEV, it is the

independent dealer that is a key link between

NMHG and the customers it serves. This diverse

network includes independent forklift dealers

throughout the Americas, Europe, the Middle

East, Africa, Asia-Pacific, and China. Through their

partnerships with NMHG, the businesses dealers

have access to the most comprehensive support

and services in the materials handling industry: from

the most recent information regarding regional

pricing and marketing, to assistance with product and

service training. NMHG views the relationship with

each individual dealer as vital and all parties work to

ensure mutual success.

In addition, when it comes to product support

for forklifts, NMHG also prides itself on providing

unmatched service after the sale. The aftermarket

service begins with demand-flow technology, a

customer-driven manufacturing process that enables

NMHG to anticipate clients’ parts and service needs.

Once produced, individual parts are then shipped to

NMHG’s parts distribution centres, which are located

in the US, Brazil, Australia, the Netherlands and Japan.

This well-stocked global supply chain gives NMHG

dealers and their customers virtually instant access

to a worldwide inventory of aftermarket forklift

parts and accessories. The organisation provides

replacement parts for all makes and models of

forklifts.

NMHG is continually upgrading and improving

the quality of its parts and the efficiency of its

distribution. As a result, it is helping customers save

time on forklift repair while lowering the overall cost

of total ownership.

Headquartered in Cleveland, Ohio, NACCO

Materials Handling Group continues to drive the

industry forward. Its partnerships with experts

in areas such as hydrogen fuel cell and advanced

battery technologies are helping bring more

sustainable and greener technologies to the market

while increasing productivity and decreasing

operational costs.

Wallace McDowall has been a supplier to Nacco for over 15 years. During this time it has built an excellent relationship with various Nacco plants throughout the world. Wallace McDowall has found dealing with Nacco to be professional and fair in all areas of their business. They produce an excellent product and Wallace McDowall prides itself in being able to provide quality laser cut, fabricated and machined parts to its customer’s satisfaction. Wallace McDowall was delighted to receive Nacco’s Continuous Improvement award during 2013.

Wallace McDoWall

For over 30 years, Nichol McKay have been a proud supply partner of Nacco Materials Handling Group. Over that period, Nichol McKay have developed from a steel stockholder and through ongoing investment in fabrication technology and process capability have become one of the UK’s premier suppliers of production ready fabricated metal assemblies and components to some of the UK’s leading OEM’s. Nacco’s stringent requirements of quality and service excellence, has helped drive Nichol McKay on this journey and we look forward to supporting Nacco for the next 30 years of their continuing success.

Nichol McKay

54 www.manufacturingtoday-europe.com

Aztec’s Bolsover site: “This facility contains

several key areas, three production, one

blending, one laboratory, two warehouses, one

engineering and our admin block,” he said. “We

are currently working towards a more lean

approach to manufacturing and have installed

the use of work instructions and encourage

our team leaders to record and communicate

methods of ensuring our continual improvement.

The management team are also standardising

our entire procedure portfolio ready to move

into the next phase of our lean journey.

“As part of our determination to form a solid

foundation for our growth we invested heavily

into achieving ISO accreditation for our business.

We have now been running to ISO 9001, 14001

& 18001 standards for several years and are

confident that our procedures and processes

Aztec Oils is one of the UK’s leading specialists in

high performance lubricant manufacture and distribution

The specialistslubrication

Aztec Oils

Products:

High performance lubricantsSites:

Two in the UKEmployees:

57 over two sites

www.aztecoils.co.uk

As company Managing

Director Mark Lord

began by explaining, the

company’s initial offering

evolved quickly to meet

the needs of customers:

“We started trading in packaged lubricants in

1998 and soon realised there was a need for a

bulk storage facility for the products. Soon after

the bulk storage was created, we then expanded

into blending, which also required a laterally

run laboratory function for testing of blended

products. We now manufacture approximately

95 per cent of the products we sell from our

own facility in Bolsover and we are one of the

largest independent oil manufacturers in the UK.”

David Ashard, Operations Director, added

some further details about the capabilities of

www.manufacturingtoday-europe.com 55

We now manufacture approximately 95 per cent of our sold products from our own facility in Bolsover and are one of the largest independent oil manufacturers in the UK

‘‘

specialistsare robust enough to support our future

development.

“ISO accreditation has become almost a

standard requirement for our customers and

holding and working to these standards gives

our customers the confidence that the high

quality products they purchase are produced in

a safe and environmentally conscious setting.”

The production facility receives over half

a million pounds of investment each year in

order to maintain its state-of-the-art approach,

and furthermore, the company’s laboratory

has recently received a £75,000 facelift. This

investment has created, on average, ten new

positions per annum at its Bolsover site. Mark

pointed out the benefits the lab brings to

Aztec: “Our laboratory quality checks our

entire product range and also takes on a

developmental role for customer specific

requests, normally within the industrial sector.

We are also currently installing the processes

required to test products that customers send

us for profiling.” He continued: “Investing in our

production, laboratory, warehousing, site and

staff has allowed us to keep up with the high

demand for our products we have experienced

over the last several years. We have doubled

our operation and installed a more robust

manufacturing and admin software suite giving

our systems the flexibility to grow alongside the

rest of the operation.”

David added: “During the last 12 months all

drivers have completed driver related NVQs,

and the production and warehouse teams

have also completed NVQs. Staff training is

very important to us and we have seen some

good results from these courses, the general

understanding of the operation and their

individual input to the success of the company

has increased with the knowledge gained. The

Operations Manager has also started an NVQ/

QFC level five leadership and management

course.

DNH as

56 www.manufacturingtoday-europe.com

Aztec Oils

www.modernutilitymanagement.com 57

“As a company, we find investing in our

team instrumental in the continued success of

our business. Several of our key operational

employees have progressed through the

company and brought along their knowledge

into their new roles, and we fully support all

aspects of developing the skills our team require

to continue into new roles within the company.”

Further investments at Aztec include new

software, social media accounts, and a new

website, which is under development. “We have

invested in a sophisticated software package,

which helps with forecasting, planning and stock

usage,” added David. “We are also increasing our

tank farm storage capability, as well as purchasing

new production filling machines and blending

tanks. Finally we are investing in food grade

blending equipment, as we are creating a new

product line for 2015.”

The new product David referred to is

Aztec’s own range of food grade oils. “We

already offered one of the largest ranges of

food grade lubricants, greases and aerosols in

the UK market place, and so the development

of our own range of food grade oils was the

We already offered one of the largest ranges of food grade lubricants, greases and aerosols in the UK market place, and so the development of our own range of food grade oils was the natural next stage

‘‘

58 www.manufacturingtoday-europe.com

Aztec Oils

natural next stage,” highlighted David. “We were

delighted to have met the tough requirements

to become NSF registered and achieving this

certification provides our customers with

the assurance that these products have been

produced in compliance with the relevant

regulations.”

As Aztec Oils moves into 2015, it has more

exciting plans in the pipeline, including a major

acquisition. Mark explained: “The purchase of

Oiline Ltd will strengthen our position in the

West Midlands giving us better connections

and improving our product expertise in

the metalworking sector. Oiline have a long

history of trading in the West Midlands and

have organically grown a significant database

of customers who have confidence in their

products and quality, which is something Aztec

can continue to supply in the future.”

Looking longer term, Mark and David have

more plans for expansion and investment, with

the vision of a total redevelopment of the

Bolsover site and the creation of more jobs:

“Over the next five years we will continue

to grow and develop our operation and set

the foundation for a solid future in Bolsover

for the company and the staff equally,” stated

David, adding: “This vision includes the purchase

of rented land and surrounding five acres to

develop our production and warehousing

operation, and further working with our new

depot in Birmingham in April this year.”

It is clear from talking to Mark and David at

Aztec Oils that the company’s success is due to

not only hard work and innovation, but also a

willingness to invest and an acknowledgement

of the important role played by a hard working

and well trained team of staff. This latter point

was recognised at the Annual Derbyshire

Times Business Awards in 2014 when Aztec

was nominated for employer of the Year : “We

were delighted at reaching the finals of the

awards,” said Mark. “All at Aztec are a vital part

of our current and continued success and we

recognise the importance of this in our everyday

operations.”

Part of the Robertson Construction Group, Robertson Timber Engineering

has been providing precision engineered timber frame solutions

for more than 25 years

The wonders

woodof

Robertson Timber Engineering

Robertson Timber Engineering

Products:

Engineered timber frame solutionsSites:One

Employees:42

www.robertson.co.ukwww.timberkit.co.uk

[email protected]

www.manufacturingtoday-europe.com 59

As Barry Armstrong, technical sales manager, explained, the Robertson Group is comprised of several different divisions, including

construction, property, facilities management, civil engineering, mechanical and electrical, and house building, and as such offers a multi-disciplinary service to clients.

Focusing on the Timber Engineering side, Barry

noted that the factory was originally created

to feed timber and joinery solutions into the

house building division of Robertson, but it

soon expanded and evolved into a specialist in

providing precision-engineered timber frame

solutions for clients from a variety of sectors. “We

are now one of the market leaders, and have a

very strong brand and name within the industry,”

Barry confirmed. “We not only supply our own

in-house products to our construction and house

building divisions, but we also do a lot of work

with external contractors, large construction

companies and national house builders as well.”

These blue-chip clients turn to Robertson

Timber Engineering because its products offer

a range of benefits, one of which is particularly

topical at the moment, as Barry noted: “If you

look at our competition in brick and block, there

is a huge demand for materials and not enough

capacity to handle it, so house builders are

looking for alternatives to bricks. A lot of builders

60 www.manufacturingtoday-europe.com

If you look at our competition in brick and block, there is a huge demand for materials and not enough capacity to handle it, so house builders are looking for alternatives to bricks. A lot of builders have also been forced to go down the route of timber frame due to the lack of bricklayers and labour available, and what we are finding is that once they have used our solutions, they embrace it and wonder why they didn’t do it years ago

‘‘

Robertson Timber Engineering

www.manufacturingtoday-europe.com 61

have also been forced to go down the route of

timber frame due to the lack of bricklayers and

labour available, and what we are finding is that

once they have used our solutions, they embrace

it and wonder why they didn’t do it years ago.

“These clients can also now appreciate the

further benefits of timber framed solutions,

such as the fact they are made off-site, under

controlled factory conditions, and are therefore

extremely accurate and can be erected very

quickly. They offer a very low CO2 footprint,

better air tightness, better insulation, and there

are lesser defects on a timber frame house as

well.

“Our timber buildings also have the same life

span of masonry buildings, but they have lower

running costs over that time,” he added. “So

while there is still an element of reluctance in

England about timber frames, especially when

you compare it to the world market where 75

per cent of all houses are timber framed, I think

it is a bit of a mind set and a fear of change, and

with our superior products we are starting to

transform this.”

As Barry highlighted, many of the benefits of

Robertson’s timber solutions stem from the fact

that they are created in a state-of-the-art factory.

“Our facilities utilise a lot of automation, and this

saves both time and increases accuracy – in fact,

our factory manager is a real stickler for quality

and detail.”

Robertson controls the process from sale to

production, and the company is keen to partner

with clients at the early design stage: “The earlier

we are involved, the longer we have to plan out

the job, iron out any problems and that makes

everyone’s life easier,” said Barry. “Our process

has been carefully created to ensure that our

products are of the highest quality and our clients

and installers frequently comment that they are

the best in the industry.”

Indeed, such has been the recent success of

the products that the company is planning on

extending its capacity, through the re-opening of

another factory. Said Barry: “This was purpose-

built by us around four years ago, but we had

to cease production for a couple of years while

the construction market recovered from the

recession. It was a huge investment for us at

the time and it is still one of the most state-of-

the-art factories in the UK, featuring some very

sophisticated equipment. It covers an area of

around 40,000 sq ft and is located in a position

that has excellent access to the motorway and

distribution network. The re-opening of this

factory will bring numerous new jobs to the

north east of England, so we anticipate our

workforce significantly increasing from its current

level of 42.”

The impetus to re-open this factory has been

partially based on the success Robertson Timber

Engineering has seen in the hotels sector. “Over

the last year or so we have worked on 14 or

15 hotels, for a range of clients,” said Barry. “The

advantage for these projects is our speed of

build – for example a 100 bed hotel can be ready

to accept guests in just six months from first

putting a spade in the ground using our solutions,

compared to nearly double that with traditional,

masonry, steel or concrete techniques. We just

supply the timber frame, and work in partnership

with other companies on these projects.”

62 www.manufacturingtoday-europe.com

Robertson Timber Engineering

62 - www.shippingandmarine.co.uk

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