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Brian Ennis Operations Manager, Lucchini

Brian Ennis Operations Manager Lucchini UK

06/20/11

Pagina 2

Lucchini Sites

Lucchin i UK Mancheste r 11.000 m2

Lucchin i Sweden Surahamm ar 15.000 m2

Zhibo Lucchini Taiyuan Shanxi Province 41.000 m2

Lucchi ni RS Lovere 130.000 m2 06/20/11

Lucchin i Poland Warsaw 7.000 m2

Customers

Others (include) London Underground GE Freight Irish Rail SA Railways USA

Employees 180 Direct Employees 136 In-Directs 44 Production Capacity: 35,000 loose wheels pa 8,000 wheelsets p.a 5,000 axles p.a. 720 gearbox maint pa

The need for change

Why change
100 year old site 100 year old culture Changes in the market Regain our competitive edge Breakdown barriers Develop a continuous Improvement culture

MISSION STATEMENT
To continuously improve our service, products and people for the benefit of our customers
To exceed where no one else has, the stars
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being the best, reach for

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MISSION STATEMENT
Excellence In All We Do

Lukomotion Our vision for Excellence

Foundations Changes to T&Cs Regulate pay grades flexible working lukomotion launch manifesto for Excellence values 5 key drivers

Excellence In All We Do

Lukomotion
Lets go to work

Excellence In All We Do

Lukomotion

5 key drivers

PEOPLE

Quality

5 Key Drivers

Environment

Elimination Of Waste

Safe Working

Excellence In All We Do

Lukomotion
A Company where Personal Commitment for the Safety of others is Second Nature L u cch in i U K Ta k in g R e sp o n sib ility fo r o u r Im p a ct o n th e E n v iro n m e n t L u cch in i U K Tu rn in g W a ste in to G a in To re a lise th e P O T E N T IA L o f a ll o u r E m p lo y e e s a n d to m a k e LU K a G re a t p la ce to w o rk W e su p p ly rig h t, first tim e a n d e v e ry tim e

Excellence In All We Do

Lukomotion HOW
Task Team with measurable objectives

Ta sk Te a m w ith m e a su ra b le o b je ctiv e s In h o u se C h a m p io n s o f L E A N P e rso n a l R e co rd o f E x ce lle n ce fo r a ll e m p lo y e e s Ta sk Te a m w ith m e a su ra b le o b je ctiv e s

Excellence In All We Do

Lukomotion MAS survey & Assessment


LEAN MANUFACT U R I N G
criteria L1 m ea su re Company Vision structure and deployment of company Vision and mission. Goal/objective setting level 1 level 2

Elimination Of Waste

CHAMPION
level 3

Brian Ennis
l ev el 4

level5

target

current 3

auctioneer BE

no business plan exists. No structured measurement methods are in Developing a plan, idea of where it wants to be but not yet Performance management system in place for Company objectives are annually set to improve place. Company has no shared vision or objectives as to where it created details behind it . Little or no connection between employees(identifies goals /objectives , lists the key performance indicators (KPI's ) The wants to be in the future . Reactionary structure . plan and shop floor activities . Employees lack activities & KPI's but lacks the tie -in of an objectives are cascaded throughout the understanding of jow they can support the company integrated business plan. Measures are in place but organisation. Improvement activity is aligned to objectives . not relevant to achieving the vision. the business plan .

A clear business plan is in place. KPI's to 5 support all goals /objectives have been developed and cascaded . Clear on its approach to the market and customers and everyone knows how they fit in to the future vision

L2

Work place organisation

organised workplace and housekeeping

No workplace organisation on the shop floor. All areas are generally disorganised and cluttered . It is not clear what is needed and what is not needed .

There have been occasional (ad hoc) initiatives to remove Clean organised work areas. Locations for tools and Discipline is high on the shop floor and 5S Formal 5S improvement activities are planned 5 unnecessary items from the workplace. Generally prompted by materials are clearly marked and in there place. principles are applied in the non production according to the improvement targets and audits company management or customer visits . Scrap /rework clearly separated . Some understanding areas (offices conference /teams rooms etc ) A place are performed by management . Improvements have of 5S (sort straighten, sweep , standardise, sustain) for everything and everything in its place. been sustained and audit scores have become a KPI

SB

L3

Visual Management

visual information on key issues

No examples of visual management beyond basic H &S, production Some indication of production status on the shop floor. control is viewed as the responsibility of supervision . Some foot printing in evidence to show locations for Information considered necessary is supplied to those responsible equipment and inventory on a need to know basis.

Production status is visually displayed and clear at all times on the shop floor . All dangerous operations are clearly marked. Inventory levels are not clearly marked but locations are designated. All information is regularly updated.

Current production status and impact on achievement of company targets is clear at all times on the shop floor. Inventory locations are marked and some levels are specified where required .

Wide range of visual management tools are used 5 throughout the facility. The status of production and area performance (safety , quality, Cost , delivery , People ) is transparent to everyone. Inventory levels and locations are clearly marked .

2 .5

HM

L4

7 Wastes

There is a limited understanding of waste within the organisation. Training on 7 wastes has taken place. Waste can now be re - Waste walks have taken place . Opportunities have No formal training of waste identification reduction / elimination organised in the organisation. Some people understand an been identified and improvement projects have led (7 - wastes = Transportation , inventory , motion , waiting , can give examples of non value added activities to waste being reduced in some areas. overproduction , over-processing , defects )

Operators are given time and encouraged to identify and reduce /eliminate waste as part of their everyday activities

The proportion of time spent adding value 5 (significant increase in value add / non value add ratio ) has been maximised. New processes are designed to be waste free .

1 .5

BE

L5

Flow

Layout is 'functional' equipment being grouped in 'same as types' Economic batch sizes are used throughout the factory . Some Buffers exist between stages of manufacturing . Single piece flow is used wherever possible . with large amounts of WIP (work in progress ) between operations batch size reduction has taken place. Some pull systems Buffer levels are reducing as underlying Kanban is used for coupling processes. Product (i .e . departmentalised ) Large batch 'push' production resulting in exist . Bottlenecks evident resulting in some queuing production problems are surfaced and resolved . and information is processed to customer order long throughput time Bottleneck operations are systematically (pull ) identified and actions taken to remove constraints

Many processes have been combined to deliver a singe flow, customer 'pull' process. WIP flows with little interruption from one value adding operation to the next without intermediate storage

2 .5

JL

L7

Continuous Improvement Culture

No improvement teams are in place. Improvement is someone else's responsibility . Suggestion schemes exist but are not used extensively

Training in measurement and problem solving methods has Improvement teams have been established - most take place . People have started to take responsibility for people are involved in project teams. Most people their processes . contribute ideas for improvement

Project teams focus on those vital few improvements which licked to company objectives . Standard means of involving CI (continuous improvement ) into day-to -day activities are in place, through visual management and review /meetings

Improvement teams from all levels of the 5 business produce consistent results. Management records show improvements in all KPI's as a result of the approach . Everyone is involved and encouraged to embrace CI

1 .5

BE/SB

L8

Condition and maintenance of tools and equipment

Frequent machine breakdown with no downtime information . Machines PM plans in place for some selected pieces of equipment , are dirty and there is no planned maintenance schedule or but majority of maintenance activity is for unplanned checklists. Equipment maintenance is generally reactive downtime . Only maintenance technicians work on machines. Little information available on downtime causes

A planned preventative maintenance program operates for production plant and equipment . Corrective maintenance is undertaken where relevant . Operators take responsibility for routine cleaning and lubrication

All equipment has PM plans with checkpoints posted . Machine uptime as charted verses established target. The prime measures for monitoring maintenance performance is OEE (overall equipment effectiveness )

A total productive maintenance programme operates. Operators playing a crucial role in autonomous maintenance . Efforts are being made to design out equipment failures . Challenging OEE improvement targets are set

2 .75

BE/SB

L9

Capacity and demand management

No planning system, production based on which customer is chasing parts or parts with high value . No concept of value streams or product families. Little knowledge of lead time, cost or future demand requirements

Some planning and scheduling in place . Team leaders often produce there own work to list , changes to schedule not communicated , schedules often overload work centres . Ad hoc capacity analysis

Runners repeaters strangers analysis taken place to define product family groups or where best to plan within the product variety. Some parts remain that do not fit the family well and cause disruption .

Planning and scheduling being developed toward fast change and flexibility focussed on customer demand to improve on time deliveries . Work undertaken to produce a level schedule

Planning and scheduling implemented with clear visual management for the shop floor to understand what they are doing and when . Kanban systems in place at correct levels 100% OTIF (on time in full ) is the norm , batch sizes are challenged

2 .5

CF

L10

Factory / Office Organisation

No strategy

Strategy defined but not deployed

factory areas examined

office areas examined

Organisation layout optimised and evidence of results

2 .5

BE/SB

Excellence In All We Do

Lukomotion Assessment

Excellence In All We Do

Lukomotion Project plan

Excellence In All We Do

Lukomotion learning plan


key driver H& S course Iosh managing safely Coshh made simple manual handling accident investigation risk assessment iosh working safely Noise awareness Nebosh national certificate in occupational safety and health Nebosh certificate in the management of wellbeing at work provider box box box box box box box ? ? cost ? ? ? ? ? ? ? ? ? provider eef eef eef eef eef eef eef cost 825 205 205 205 225 1755 990 duration 4 days 1 day 1 day 1 day 1 day 1 day 1 day 10-13 days 5 days number each each each each each each each each each comments karen to advise karen to advise karen to advise karen to advise karen to advise karen to advise karen to advise karen to advise karen to advise

Nebosh health and safety at work award

eef

562

3 days

each

karen to advise

introduction of health and safety at work

in house

4 hours

each

karen to advise

waste to gain environment quality people

lean office lean facilitator exceleration to lean lean office foundation lean office champion Six Sigma green belt lean leadership lean emersion day Business improvement techniques NVQ Lean Learning Academy how to in- comany workshops lean & green environmental awareness IEMA diploma in environmental management IEMA certificate in envronmental management IEMA envirinmental management for senior executives IEMA foundation certificate in environmental management IEMA resource effeiciency management problem solving skills how to problem solve quality assurance working successfully with trade unions managing conflict managing within the law effective employee representative handling sickness absence handling discipline equality and diversity presentation skills presentation skills advanced train the trainer project management managing change managing people for results finance for non financial managers handling difficult and sensitive issues excellent customer care essential selling skills effective employee representative effective time management skills interpersonal communication skills IT skills basic excel IT skills excel advanced IT skills basic word IT skills word advanced IT skills basic powerpoint IT skills powerpoint advanced commercial negotiation skills intoduction to team leadership assertiveness skills CMIlevel 5 award in management and leadership ILM level 2 award in team leadership ILM level 3 award in first line management ILM level 3 award in workplace coaching for team leaders and first line managers

MI MI MI MI MI MI MI MI MI MI in house

75 2950 11200 9600

eef eef eef

260 260 1275 260 2476 1750 225 640 400 249 249 249 249 249 249 249 450 249 2500 995 1495 1350

1 day 5 days 12 days 5 days 4 days

each each each each 25 people = 448 each 25 people = 384 each each each each

in-house poss in-house poss in-house poss in-house poss Production managers, team leaders and supervisors in-house poss. Office managers and dept managers & team leaders in-house poss. Office managers and dept managers & team leaders in-house poss CI managers, production and quality managers directors and senior management Senior excutives senior managers Jaguar Land Rover. Production managers and team leaders also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house) also can do in-house (price req for in-house)

funded 3000 495

eef in-house eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef eef

2 days 1 day 1 (1hr) 15 days 10 days 1 day 3 days 2 days 1 day 2 days 7 days 4 days 6 days 2 + 2 blocks

10 days 12 people = 250 each each all each each each each each each each each each each each each each each each each each each each each each each each each each each each each each each each each each each

technical awareness level 1 technical awareness level 2 technical awareness level 3 manufacturing problem solving team leader development program certificate in manufacturing operations certificate in manufacturing management manufacturing mangement developement proffesional diploma in manufacturing MSc in manufacturing leadership

in-house in-house in-house MI MI MI MI MI MI

2250 4000 4000 2000 10200 13500

eef

260

1 day 8 MONTHS 10 MONTHS 4 MONTHS 2 years 2 years +

each each each each each each each each each each

sean barson sean barson sean barson also can do in-house (price req for in-house) in-house poss. Team leaders, first line managers and supervisors production managers,engineering managers and team leaders MANCHESTER MANCHESTER production managers,engineering managers and team leaders middle and senior managers and CEO's

Excellence In All We Do

Lukomotion Learning providers


name r callaghan stewart brennan peter o'hara ian gilmore stefano ganzerla sean barson adam odell nick parsons billy dean steve brierly tony wilson john twemlow dave cole john birch david gill eric heywood dave andrews r callaghan stewart brennan peter o'hara ian gilmore stefano ganzerla sean barson group / entry level managers managers managers managers managers managers team leader team leader team leader team leader team leader team leader team leader team leader team leader team leader team leader managers managers managers managers managers managers course iosh iosh iosh iosh iosh iosh acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration acceleration to to to to to to to to to to to to to to to to to lean lean lean lean lean lean lean lean lean lean lean lean lean lean lean lean lean key driver H&S H&S H&S H&S H&S H&S Waste Waste Waste Waste Waste Waste Waste Waste Waste Waste Waste Waste Waste Waste Waste Waste Waste to to to to to to to to to to to to to to to to to Gain Gain Gain Gain Gain Gain Gain Gain Gain Gain Gain Gain Gain Gain Gain Gain Gain qualification if appl iosh certificate iosh certificate iosh certificate iosh certificate iosh certificate iosh certificate provider boxberrie boxberrie boxberrie boxberrie boxberrie boxberrie MI MI MI MI MI MI MI MI MI MI MI MI MI MI MI MI MI durat ion ? ? ? ? ? ? cost ? ? ? ? ? ? 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2950 2951 2952 2953 2954 2955 2956 start ?? ?? ?? ?? ?? ?? Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11 Jan-11

all employees

all

Business improvement techniques NVQ

Waste to Gain

funded

racheal marsh dave aldred dave jones brian hughes Okidum Alan Jervis Rob Pollock an other an other an other

QC's QC's QC's QC's QC's works works works works works council council council council council

Problem Problem Problem Problem Problem

Solving Solving Solving Solving Solving representation representation representation representation representation

Quality Quality Quality Quality Quality people people people people people

eef eef eef eef eef eef eef eef eef eef

495 495 495 495 495 ? ? ? ? ?

? ? ? ? ? ? ? ? ? ?

effective effective effective effective effective

all employees all employees Dave cole

all all Team leader office staff

whats lean NVQ inventory management lean office

Waste to Gain People People Waste to Gain

? DLC

13500 funded 1500

eef six sigma green belt

1 day

260 67906

23rd mar & 28th sep

Excellence In All We Do

Lukomotion learning Timeline


IOSH IOSH direct/indirect identified courses awarenes s course behaviou behaviou behaviou ?.nsfhrvf behaviou behaviou behaviou whats r survey r survey r survey r survey r survey r survey lean whats lean whats lean basic pc skills whats lean whats lean basic pc skills whats lean basic exel whats lean basic pc skills whats lean basic exel basic excelle excelle excelle basic pc ration ration ration exel skills to lean to lean to lean basic excelle excelle excelle pc ration ration ration skills to lean to lean to lean basic excelle excelle excelle pc ration ration ration skills to lean to lean to lean basic excelle excelle pc ration ration skills to lean to lean basic excelle excelle excelle basic pc ration ration ration exel skills to lean to lean to lean basic excelle excelle excelle basic pc ration ration ration exel skills to lean to lean to lean basic excelle excelle excelle basic pc ration ration ration exel skills to lean to lean to lean basic excelle excelle pc ration ration skills to lean to lean basic pc skills quality assuran ce basic pc skills IOSH quality IOSH assuran ce IOSH basic pc skills quality assuran ce meet the team basic pc skills problem solving meet the team basic pc skills m - 13 Dec t - 14 Dec w - 15 Dec th - 16 Dec f - 17 Dec m - 20 Dec t - 21 Dec w - 22 Dec th - 23 Dec f - 24 Dec JANUARY t -04 Jan w - 05 Jan th -06 Jan f -07 Jan m - 10 Jan t - 11 Jan w - 12 Jan th - 13 Jan f -14 Jan m - 17 Jan t - 18 Jan w - 19 Jan th -20 Jan f - 21 Jan m -24 Jan t - 25 Jan w - 26 Jan th -27 Jan f - 28 Jan - 31 Jan FEBRUARY Feb-01 Feb- 02 Feb-03 - 04 Feb -07 Feb Feb- 08 Feb- 09 Feb-10 - 11 Feb -14 Feb Feb- 15 Feb- 16 Feb- 17 - 18 Feb - 21 Feb Feb- 22 Feb- 23 Feb-24 - 25 Feb -28 Feb MARCH Mar- 01 Mar- 02 Mar-03 - 04 Mar -07 Mar Mar- 08 Mar-09 Mar- 10 - 11 Mar -14 Mar Mar- 15 Mar-16 Mar- 17 - 18 Mar - 21 Mar Mar- 22 Mar- 23 Mar- 24 - 25 Mar - 28 Mar Mar- 29 Mar-30 Mar- 31 - 01 Apr APRIL -04 Apr Apr- 05 Apr-06 Apr- 07 -08 Apr - 11 Apr Apr- 12 Apr-13 Apr- 14 -15 Apr - 18 Apr Apr- 19 Apr- 20 Apr- 21 -22 Apr - 25 Apr Apr- 26 Apr- 27 Apr- 28 -29 Apr MAY - 02 May D D Madeley Lyons Lockett Lloyd Lindop Leach Latter Kuerschner Kilgannon Jones Johnston Johnson Jervis Jenkins Jackson Hutton Hunt Hughes Hornby Hope Holder Hogg Hilton Heywood Heavyside Hawkes Harrison Harmon Hannaghan Grindley Gill Gamble Ford Flannagan Emmerson Edwards Eckersley Dunbar Duff Driver Dore Dolman Dewitt Delve Dean Deakin Cummins Collins Cole Clarke Cheroubrier Chandler Carlisle Candlin Callaghan Butler Broughton Brooker Brierley Brickhill Borg Birch Billington Beard Barton Barrell Ball Badley Andrews Adewusi Adegoke Manuel Jason Malcolm Richard Andy Geoff Alan Adrian Robert Eric Paul Ronald Mike Mark Cameron Callum Terry Les Billy George Ian Darren Dale Trevor Tony Michael Tom Anthony Chris Steve Matthew Phil Charles Matt Connor Kevin John Peter Dave Deji Prince Cylde 0 0 0.5 0. 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7 7 7 0.5 7 7 0 . 5 2 0 .5 2 0 .5 7 7 7 2 0 .5 7 7 7 0 . 5 7 7 7 0 . 5 7 7 0 . 5 7 7 7 0 . 5 7 7 7 0 . 5 7 7 7 0 . 5 7 7 0 . 5 0. 5 0 .5 0. 5 0 .5 1 0 .5 1 0 .5 ID D Parker O'Hara Jones Gilmore Foulkes Connolly Chadeyreon Ansari Wood Tong Toms Smith Roberts Redmond Booth Nixon Moody Montgomery May Mattanza Leslie Law Irlam Illing Hughes Ganzerla Fawdry Ennis Stevens Callaghan Byers Brooke Brennan Barson Aldred Zgierun Yates Wilson White Webb Watson Wade Viera Twemlow Trelfa Thwaites Taylor Stoddard Staslak Spears Southern Shaw Sharples Rimmer Ridings Reilly Raynes Ralph Race Pulella Pollock Phillips Parsons Park G ParishC Pannatier O' Hara Odell S M MurrayD Molyneux MistryM Mhlanga McMahon McGonigle McCrory Massey Mason D MarshallI MarshGB Keefe Miroslaw Tony Les Chris Eduardo Graham Rick Alan Stebestian Mike Craig Andrew Frank Ian Brett Ray Domenico Paul Dave Matthew Robert Nick Jim Eric Serge Damien Lee Adam Steve Kentilal Amos John Liam Peter Darren Mayne Fred Martin Anthony 0 0.5 0. 5 0 0 0 0 0 0 0 7 7 7 2 7 7 2 7 7 7 2 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 0. 5 7 7 7 0.5 7

Excellence In All We Do

Lukomotion learning Centre


Company Investment 9000 hrs learning

time

in 2011

Most of the learning will take place in our learning centre


Excellence In All We Do

Lukomotion

Learning ACHIEVEMENTS/ progress


Dec - Environmental Awareness 100% Jan - Health & Safety Survey 100% Jan - Whats Lean AWARENESS course 100% Feb - Acceleration to Lean 20% Mar - Acceleration to Lean Apr - Acceleration to Lean Apr - ISo14001 ENVIRONMENTAL CERTIFICATE awarded may - Acceleration to Lean May - iosh departmental managers may/june - Visits to jaguar land rover 50% June/OCT - Fellowship lean projects JUNE - Quality awareness 100% JUNE - Problem solving 15% Sep - TEAM LEADER training OCT/DEC - Behavioural safety coaches 15%

Excellence In All We Do

Lukomotion IMPROVED FACILITIES

Excellence In All We Do

Lukomotion IMPROVED FACILITIES


Company Investment 9000 hrs learning

time

in 2011

Most of the learning will take place in our learning centre


Excellence In All We Do

Lukomotion Continuous learning

Ski s ll

t Talen
I n magi na ti

progress wall
Involvement
Flexibi lity

ie per Ex

nce

Inte ty gri

fun
Reward
e edg l now K

Responsib ili ty
Com p

Resp ect

ete n

Loy a
ce

lty

o No riminati Disc

Empowerment

Recogniti on

Excellence In All We Do

Lukomotion

Thanks for Listening

Excellence In All We Do

Andy Jones Managing Director, Baerlocher

Skills and Talent Workshop


Manufacturing Advisory Service Conference June 18th 2011 MUFC, Old Trafford. Manchester

Andy Jones Managing Director Baerlocher UK Limited


Manufacturing Institute Ecellence Series: 18th June 2011 Andy Jones, page 28

Releasing the potential from the talent within


Life at the learning edge in a SME subsidiary of an established multinational just after the founding entrepreneur has gone

1 . Scene setting Entrepreneurial growth Success then Acute pain 2 . Co dependency and Change management failure 3 . Creating the right environment to release the potential within 4 . Building trust using Champions and Catalysts 5 . Using MAS to Survive and Thrive Create the conditions which allow for talent release Then and only then , can your employees reach their potential

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 29

Baerlocher UK Limited A brief history : 1973 - 2011


Subsidiary of Baerlocher GmbH Private Ownership , Munich based UK = 12 % of EU / MEA Sales ( 13m ) Manufacturers of Plastics Processing Additive systems End users Construction sector mainly PVC building products Production , Sales , Laboratory , Warehouse
Established 1996 in Bury

UK Sales agency , Dorking , Surrey Founded 1973 Office Closed 1990

Change of MD in 1989 UK Office moved to Bury , Lancs


Andy Jones, page 30

Manufacturing Advisory Service Conference 2011: 18th June 2011

Business and Employee growth over the past 25 years


Entrepreneurial start up period Manufacturin g Acute Pain Survive and Thrive

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 31

Employee Satisfaction and Success


The 7 common traits of a successful business ( best financials and highest employee satisfaction )
( Vodafone UK s Working Nation survey 2006 )

Leaders ( Not Followers ) Risk Taking ( Not Cautious ) Most Commonly found where :Start up s : 4 - 5 yrs of Trading Innovative 10 - 50 employees Diversified Young senior management (< 50 ) YOY Profit growth > 20 % Clear Single Identity < 5 % Staff churn Employees highly motivated and Early Adopters Long Term strategists

Between 1989 1996 , these were the traits of Baerlocher UK A highly successful customer orientated selling organisation Power culture , play hard work hard Lead by an entrepreneurial style High level of Autonomy Sponsored by Company owners

t in tha ent fu l ess vestm cc su In o m S . 2.5 turing fac 994 anu 1 In M


Manufacturing Advisory Service Conference 2011: 18th June 2011

satisfi

Andy Jones, page 32

Boost in profits follows and further 1m invested in 2000

BUT promised growth turns into decline in parallel with employee departures

Entrepreneurial start up period

Manufacturin g

Acute Pain

Survive and Thrive

Departures 1996 - 2007 60 % in Manufacturing / Lab 40 % in Sales / Admin / Management 70 % LEFT FOR ANOTHER JOB 2008 - 7 Voluntary Redundancies , 1 Death , 1 Planned retirement

Early growth years few staff changes

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 33

Organisational development starting manufacturing


Opportunity lost Manufacturing was bolted on rather than integrated
SALES TECHNICAL QUALITY MANAGEMENT PRODUCTION

CUSTOMER SERVICE MANAGING DIRECTOR

EXTERNALS (WAREHOUSING) SUPPLIERS SITE MANAGER SITE MANAGEMENT

PARENT COMPANY PRODUCTION HEALTH & SAFETY

FINANCE & ADMINISTRATION

KEY CUSTOMERS

PARENT COMPANY (MANAGEMENT)

NETWORK

INDUSTRY

INVENTORY

TRANSPORT

STAFF ( THEM )

WORKS ( US )

The Site Manager was a self made entrepreneur from the same indust TWO SPIDERS totally controlling their respective webs COMMAND AND CONTROL management style across the company Each SPIDER protects the other locally and with the parent compan

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 34

The dark side of entrepreneurial management


Creating Employee Co dependency

ntensity and closeness in a start up creates dependency

mployees freely concede managerial control to the boss

ositive side :reativity , self reliance , courage and vision

ark side :reoccupation with control , sense of distrust , desire for applause , gree nd lack of transparency .

LACK of TRUST hinders organisational processes - does little o engage employees in their work but people stay around?

he nature of the trap is a function of the nature of the trapped

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 35

Co dependency what actually happens


n People in positions of authority should decide what should be done n People consent to being controlled like a thing in the extreme cases n Even seeing the need to act, they dont take the initiative and wait to be told what to do and respond as directed n Leaders get blamed when things go wrong n A fear of change felt by those who are dependent on a few decision makers n A fear of change felt by those who make the decisions n RESULT = No change, passive middle management, no one takes responsibility, not everybody is clear about what is expected, the rules can change without notice, disempowerment expecting others to change first before they need to

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 36

Co dependency & Emotionally Cancerous behaviours

Criticising

Comparing

Competing

Complaining

Security is sought from sources outside the individual because they are co dependent with their environment , they engage in destructive , cancerous behaviours . Almost impossible to deliver high quality to customers And we struggled to recruit key staff from the marketplace
Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 37

2001 - 2003 Management demand Change


But the Change management initiatives fails

External consultant employed in 2001 briefed to examine why are we not achieving our promised goals after winning investment in 2000 A Quantum leap in Sales is demanded by the BoD Outcomes :Failure blamed on sales and technical functions Management group is formed from silos - department heads Cross functional working parties formed to discuss fluff issues MD control intensifies , employee churn increases dramatically , especially with those < 5 years service in the company or in non management roles Most change management fails because of inherent systemic failings Learned incompetence prevails , survivors know how to survive
Manufacturing Advisory Service Conference 2011: 18th June 2011 Andy Jones, page 38

What most people actually want


(Stephen Covey the 8th habit from effectiveness to greatness)

Use me creatively
MIND
SERVING HUMAN NEEDS IN PRINCIPLED WAYS

Amongst SME leaders and Large , corporate company leaders , strong workforce engagement is perceived to be the single most important attribute of a successful busines
( Vodafone UK s Working Nation survey 2006 )

People have choices Creative excitement Heartfelt co operation Cheerful co - operation Willing compliance Malicious obedience Rebel or Quit
Manufacturing Advisory Service Conference 2011: 18th June 2011 Andy Jones, page 39

DY

SPIRIT

Pa

me

fa

BO

ir

ly

Tr ea t me ki nd ly
HE AR T

Tackling the issues to create sustainable change


ESSENTIAL to remove the causes of co dependency and rebuild TRUST
2004 - New group CEO formulates exit for MD by 2006 . Sales Manager and Technical Director form an alliance for the future . - Define and execute business strategy - Turnaround conflict with parent company and foster cooperation - Recruit for planned succession as key customer facing people are due to retire

t is to do w i ng t ho goi i a y retires ahead e MD hetknowstwhat s coming S 2005 - Site Manager a r of e r u h s you l th 2006 - Appointment of New MD and Site Manager t what oncea i ( both from deputy y) positions S a - Equality of conditions s t d o and works , robust HR t c d j u between staff Don introduced an - Communication of strategy & progress regularly to ALL
employees

2007 - Cross functional project teams solving real issues People want to HELP - Manufacturing Institute and Executive support begins ( Exec Manufacturing Advisory Service Conference 2011: 18th June 2011 Andy Jones, page 40 Coaching ) - Employee and role development across the whole company 2008 - Recession = The trapped are released : 25 % of employees

Re-establishing Trust

Competitive advantage will employees trust their company , match the company s strategy stand a chance of

be gained only when when their aspiratio and when their hopes being met

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 41

Champions and Catalysts


Can you achieve the changes needed alone? A Catalyst - Nitrogen and Hydrogen when mixed and heated do nothing Add some Iron and Ammonia is produced

Using a Catalyst in organisational change An outsider with mysterious ways of getting things done where there s lot s of trust around and then they move on . to propagate additional change
A Champion a leader or leaders who champion and sell the idea Generally promotes the cause , leading onward , vision , purpose , integrity Several Champions from different departments and levels creates a

Guiding coalition for change


Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 42

With the right environment we can turn the triangle


When the true leaders job is done, people will say we did it ourselves

Operator
Instruct & Command

Dir Manager Supervisor

Team Leader Supervisor


Catalysts , Champions , TRUST

Manager Dir
Support The Process

Team Leader Operator

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 43

Using MAS and Manufacturing Institute as catalysts

First recommended to us by a customer in the North West 2007 Attended MAS Conference at Reebok Stadium Free Audit by MI Lean awareness training ALL employees 2007 Introduction to 5S 3 day event April 2008 Warehouse blitzed ! Customer visits where Lean is well established

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 44

Using MAS and Manufacturing Institute as catalysts


Lean implementation in warehouse and production areas Train to Gain Funded NVQ level 2 for 12 employees 2009 2009 - Accelerated Route to LEAN programme ( Warehouse Supervisor & Site Manager ) 2010 - Team Leader Development Programme ( Production Supervisors ) 2010 - Introduction to 5s ( for new employees ) 2011 Lean Office to be started

Manufacturing Advisory Service Conference 2011: 18th June 2011

Andy Jones, page 45

We have Survived and are Thriving


In spite of the massive drop in UK construction products demand

First factory globally to stop using toxic Lead compounds ( industry commitment to stop completely in EU27 by > 40 % share of target market = Successful 2004 sales strategy 2 investments - increase capacity and improve productivity ( 1m ) Won Environmental awards ( Groundwork Bury ) High Quality Sales training for all customer facing staff UK personnel heavily involved in directing parent ( group - wide ) company
2015 )

Apprenticeship scheme started in 2010 ( Laboratory ) 2007 plant and engineering staff training at parent company factory Leadership development courses for Management team First aid , Fire Marshall and manual handling training HGV Class 1 and ADR Hazardous Goods as back up on logistics Site manager qualified NEBOSH Level 3 Professional accountancy qualifications / customer service training the Catalyst and Champions Service Conference 2011: 18th June 2011 Andy Jones, page 46 - going about their Manufacturing Advisory business as usual

Skills and Talent Workshop

The outcomes of what we have achieved for our employees

Absenteeism - 1 . 5 % in 2007 , 0 . 3 % 2010 Staff Churn - constant threat of staff being lured away by customers otherwise nil

or f n u i oworkforce o prepared?to do FLEXIBLE and MOTIVATED yneeds n tour customers ANYTHING to meet the n k t t e of i o n s h a for A to makesa t CONTRIBUTION T Opportunities ALL e REAL q ulevels of STRESS High levels of TRUST, low ny A in the market place ATTRACTIVE to talent
JOB SECURITY and JOB SATISFACTION
Manufacturing Advisory Service Conference 2011: 18th June 2011

ur yo

Andy Jones, page 47

Neil Smith Head of Education and Training, The Manufacturing Institute

Professionalising Manufacturing

Neil Smith
Head of Education and Training

Copyright The Manufacturing Institute 2011

Professionalising Manufacturing
Propose a Professional Framework Improve Image of Manufacturing Some good practice in action MSc in Manufacturing Leadership

Copyright The Manufacturing Institute 2011

Professionalising Manufacturing
Propose a Professional Framework Seeking views on the need for professional standards and recognition in Manufacturing

Copyright The Manufacturing Institute 2011

From Classroom to Boardroom

Assessment of applied professionalism - general and specialist skills Accredited Education regionally A professional route post apprenticeship/degree

Structured approach to engaging young people

Copyright The Manufacturing Institute 2011

Professionalising Manufacturing
The Image of Manufacturing Seeking more support for the Make It Campaign or any other initiatives

Copyright The Manufacturing Institute 2011

Define the need Classroom to Boardroom

Image of Manufacturing. Recent research focused on 12-16 year olds finding that:
This age group associated manufacturing with factories (26%) and with making things (14%) Manufacturing is seen as worse in terms of pay than other professions (76% doctors, 72% lawyers, 56% accountants) and about the same for teachers (44%) Manufacturing is not seen as having a better reputation than other professional, generally it is worse. It is seen as providing fewer opportunities to think creatively than other professions Yet it is seen as being as important if not more to the economy when compared with the other four professions[1].

[1] Engineering UK the 2010 Brand Monitor

Copyright The Manufacturing Institute 2011

Copyright The Manufacturing Institute 2011

Copyright The Manufacturing Institute 2011

Define the need Classroom to Boardroom

Can the issue be addressed effectively?


96% of pupils said that they knew more about manufacturing & engineering after visiting the stand The number who would consider a career in manufacturing before visiting the stand was 7%. Afterwards 75% said they would consider a career in manufacturing as either a designer, scientist, engineer or production manager

Copyright The Manufacturing Institute 2011

Professionalising Manufacturing
Some good practice in action MSc in Manufacturing Leadership Seeking Views on the need to develop more dedicated Manufacturing Education programmes

Copyright The Manufacturing Institute 2011

The MSc in Manufacturing Leadership


Vision: To lead the transformation

Aim: Build on existing strengths to develop Complete Business Leaders Entrepreneurs growing businesses Fast-track managers aiming for the top

Copyright The Manufacturing Institute 2011

Programme Objectives

To understand key dilemmas facing manufacturing organisations To understand how to address key issues in a manufacturing organisations growth and development To understand productivity drivers: investment in people and personal development, technology in manufacturing, leadership, organisational development, research and development and innovation processes.

To understand sufficient of the core functional disciplines to support the above To access manufacturing best practice To deliver measurable business improvement through in-company projects To develop peer group networking and sharing of best practice.

Copyright The Manufacturing Institute 2011

Indicative Content
Global Markets & Future Manufacturi ng Global Markets Trends & Drivers Scenarios for Manufactg Change managemnt Generating Wealth in Manufacturi ng Finance & Accounting Business Planning Legal & Governance Funding & Wealth Generation World-Class Manufacturi ng Practices Best Practice & Bench marking Technology & Process Supply & Sourcing IT Strategy Manufacturi ng Enterprise Creation & Developme nt Markets & Competition Creating Value Winning Customers Developing & Deploying Strategy

Leadership Leadership Styles Motivation & Coaching Team building Recruitment & Retention Vision & Values

Innovation Innovation & Creativity New Product Developmt RPPR Project & Risk Managemt

Copyright The Manufacturing Institute 2011

MSc in Manufacturing Leadership

Module Convenors/tutors

Leadership Dr David Bamford

Global Markets and Future Manufacturing Dr Dominic Oughton


Cambridge University

Generating Wealth in Manufacturing David Murphy


Lancaster University Management School

BSc MPhil PhD MCMI Manchester Business School

Copyright The Manufacturing Institute 2011

MSc in Manufacturing Leadership

Module Convenors/tutors

World Class Manufacturing Practices Prof Linda Hendry

Manufacturing Enterprise Creation and Development Mark Pickering

Innovation

BSc, PhBSc, PhD Lancaster University Management School

Warwick Manufacturing Group University of Warwick

BSc MNSE MBA PhD ILTM Assistant Professor Arizona State University

Dr Adegoke Oke

Copyright The Manufacturing Institute 2011

Make the Education accessible


Per Annum
e-learning resources Core-knowledge Case studies Periodicals

Price

6 , 750

Location
Tutoring Tutoring

Manchester

Assessment
In-company taskorientated projects

12 Days Guided Learning Evenings 9


Workshops Four (one-day) per module

Facilitated Action Learning Sets Three per module

Factory Visits

Copyright The Manufacturing Institute 2011

Assessment
Module Assignments (5000 word report excluding Appendices)

Constructively apply in the workplace what has been learnt Build up an understanding of the topics studied Demonstrate understanding enabling progress to be assessed. Often deliver real and significant business benefits

Dissertation (following successful completion of all 6 taught modules)

Significant individual in-company research project Area of research proposed by student Signed off and supported by an Academic Supervisor Assessed via a 15,000 word dissertation
Copyright The Manufacturing Institute 2011

TMI Scholarship
Up to 2000 towards MSc Apply through TMI Web Site

Copyright The Manufacturing Institute 2011

Professionalising Manufacturing
Seeking views on the need for professional standards and recognition in Manufacturing Seeking more support for the Make It Campaign or any other Image improving initiatives Views on the need to develop more dedicated Manufacturing Education programmes

Copyright The Manufacturing Institute 2011

Professionalising Manufacturing

Neil Smith
Head of Education and Training

Copyright The Manufacturing Institute 2011

Andrew White Managing Director, Aircelle

Aircelle Limited

Successfully Growing in Manufacturing


Overcoming the Attraction and Retention Challenge

Andrew White Managing Director 16 June 2011

This document and the information contained are Aircelle property and shall not be copied or disclosed to any third party without Aircelle prior written authorization.

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Aircelle - Who are we and what do we do?


A division of the international, hightechnology SAFRAN Group (11bn T/O, 54 000 employees) European leader and Global No.2 in the design, integration and manufacturing of Aero Engine Nacelles and Thrust Reversers From Business Jets to the A380 Super Jumbo World-wide presence for after-sales services 3 000 people across 7 sites in France, Morocco and UK Aircelle Ltd is the only UK manufacturing site within Aircelle Group (130m T/O, 800 employees)
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My Approach to this Workshop A Journey


Where we were What we identified as our challengesand our opportunities What we did to change What have been the results

What is next for us

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Where We Were

Our Business Context

Our Core Issues

The Aerospace Market has a high Employees were unhappy and growth forecast 5% per disinterested Low Pride annum Lack of recognition of the positives The UK has a positive reputation internally or externally for high technology design and Skills pipelines were dry.and manufacture worsening The Safran Group were happy to Too reliant on the stories of the invest but concerned about the good old days a very ability of the business to traditional business respond to the challenge Lack of new blood Major opportunities existed to achieve significant business

growth IF we could take advantage of them


DEPARTMENT / Date

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73

What we did to change We tried to look at the same problems


differently to other people & other businesses And differently to how we ever had done before in order to get a different result
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DEPARTMENT / Date

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Some A-Ha Moments for us

Community & Education

We could utilise relationships within our local community to build employee pride We needed to consider how the skills pool was fed Schools, Colleges, Universities and how we could influence Our senior teams needed to be personally visible and committed to the community we were in (role-modelling the way)

We

had to create internal and external pipelines to plug our future skills gaps recognising the changing skills mix and emerging skills needed within the aerospace sector Dignity, respect and trust were key deliverables for our employees We needed to value and develop leadership skills AND technical skills within our business HOW WE WORK is as important as WHAT WE MAKE

Organisational Culture

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We had an opportunity to combine BOTH agendas to develop a unique and special business, focussed on our future and not our past Our leadership team and employees needed to buy-in and be engaged for it to work

This document and the information contained are Aircelle property and shall not be copied or disclosed to any third party without Aircelle prior written authorization.

What we did to change

nd regions biggest issues - how could we Building ? Defined what we wanted toour focus onfor -add value a Sustainable Business in -Burnley Placed be famous developing long-term pipelines for skills a strategic

our local community - Education, Council, Universities, Businesses community Utilised our employees as our Ambassadors within the local Placed senior leaders on local, regional and national Industry Boards, and encoura

gy, Engineering & Maths) to

be our key focus area for collaboration a part in making school fun and enjoyable for young people in our area bringing work in m Improved our workplace for our own emplo Focus on Inspiration as well as Education Reviewed all HR policies, established a Dignity @ Work agenda, strat

tablished our apprentice programme year for Craft, 2 per year Technical)
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DEPARTMENT / Date

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What we did to change


of our leaders and reviewed how we developed leadership skills

Defined what it means to be a successful leader within Aircelle Our Lea

Amended our HR processes to attract, recruit, develop, reward and grow th

Trained 65 managers to NVQ Level 5 in Management

Developed both Leadership and Technical Pathways to provide visibility of pr

ople were best at senior specialist AND generalist roles developed

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What we did to change

ves - did career pathways really exist for specialists?

oss of skills, due to specialists being wrongly-placed in leadership positions Opportunity to develop into a senior role
Route 1 Route 2

eed to develop and retain highly-technical skill base

ored pathways and development solutions for individual employees

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What have been the results

local high schools, 6th on all college, FE college and UCLAN Providers Governor Boards oyee representatives form local School, College and Training

volving over Developing leadership skills 50 schools 4 000 young people across for senior managers of schools

sadors supporting local BurnleyManufacturing Institutes Make It Challenge Annual sponsor of The schools

This document and the information contained are Aircelle property and shall not be copied or disclosed to any third party without Aircelle prior written authorization.

DEPARTMENT / Date

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What have been the results - business


2011 Nominations for .... NW Business Class Award Burnley Large Business of the year 2009 Burnley Business of the Year Investors in People Accreditation

2008 ancashire Business of the Year

Burnley Environmental Sustainability Award

Burnley Staff Training & Development Award Burnley Business Commitment to the Community Award

2010 Best Environmental Practice Award North West

This document and the information contained are Aircelle property and shall not be copied or disclosed to any third party without Aircelle prior written authorization.

DEPARTMENT / Date

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What have been the results - people

obs created within Burnley since 2007

50% reduction in disciplinaries and grievances s Labour turnover 5% in 2010 (2005 15% 2007 13%)

Over 150 employees participating in external activities or c

Average Recruitment Costs - 609 (2005 - 4730)

ent designed to recognise employee commitment and development Over 400 employees gained/working towards work-based qu

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What is next - creating a business where our employees want to be


Our Goal is to create A Great Place To Work

a place where employees " TRUST the people they work for, have PRIDE in what they do, and ENJOY the people they work with "

Scores from our Survey in March 2009:

Our Key Question : Overall , I think this is a Great Place to Work 56% in 2007

70% in 2009 TBC% in 2011

This document and the information contained are Aircelle property and shall not be copied or disclosed to any third party without Aircelle prior written authorization.

Our next survey is planned for late 2011

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What is next - attracting the right skills and talent for the future targeting our offer
To an Engineer ?

To a Leader ?

To a Graduate ? To a Shop Floor Employee ?

To a Specialist ?

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DEPARTMENT / Date

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Questions and Discussion

This document and the information contained are Aircelle property and shall not be copied or disclosed to any third party without Aircelle prior written authorization
This document and the information contained are Aircelle property and shall not be copied or disclosed to any third party without Aircelle prior written authorization.

DEPARTMENT / Date

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For further information, please contact: Andrew White Helen Gopsill Managing Director HR Director 01282 419390 01282 419326

THANK YOU FOR YOUR ATTENTION


This document and the information contained are Aircelle property and shall not be copied or disclosed to any third party without Aircelle prior written authorization.

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