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Vol 28 - No 09 - November 2002 Report on Riding the Storm Seminar Pow!There were not any Merchant Bankers there, but perhaps they would have been especially in need of advice on 'Riding the Storm' following recent stock market events. This seminar held by the Institute on 24th September, was another successful event in the current season. The audience, consisting mainly of manufacturers, heard many aspects of how to ride the storm and avoid it. Martin Christopher kicked off proceedings with his explanation of the agile supply chain. This included the clearest explanation of the difference between Lean and Agile heard yet. His enunciation of the feeling that we have all had, that some modern trends are making supply chains vulnerable, eg.globalising supply chains and outsourcing. His 'Planning Balance' showed that the further away planning is from ultimate demand the higher inventory and spare capacity needs to be. In other words, do not complain about poor forecasting, get closer to the source of demand. Corus was the subject of Gary Todd's talk, and the big changes in size and culture that the company is having to make to survive. It is no use in being the most efficient producer in the western world, a company has to provide more;Corus are striving to do this -a solution provider not a commodity maker. More of this thinking in December's 'From Making Things to Delivering Solutions'event. Accompanying this change to face the market, Gary explained the actions being taken to change attitudes within the company to support these initiatives. 'Another ground hog day' was how Alex Kitchen describes his current view of life. Probably not a good advertisement for entrepreneurship, Alex gave the ups and downs of running Velden Engineering, a jobbing engineering company. Alex has been there, done that, burnt the tee-shirt; appeared on Troubleshooter, been part of the Inside UK Enterprise initiative, implemented MRP on a small computer, and even given two talks to BPICS Conferences, where I first heard him. I am not sure that Alex has the answer to UK manufacturing's problems, but I am sure that he will be the one to turn the lights out if the time ever comes;always an enthusiast. In the middle of the day a discussion workshop was run in two groups. Like everyone else I feared making a fool of myself in public, but interesting discussions took place at my table where the general concensus (I think!) was that we can only succeed in manufacturing by being customer orientated, and bringing more to the market than lowest price. Discussion continued over lunch. Afterwards, Heatrae Sadia demonstrated how this could be achieved. Over 35%of this year's sales will come from new or updated products and they are relaxed about electric showers 'Going East', because they are commodity products. Perhaps we have indeed passed the screwdriver economy stage and are now in the design and innovation phase of manufacturing. Lean manufacturing, working with suppliers on design, investment in up to date appropriate equipment and developing employees have led to their doubling turnover in 5 years. One phrase I took home 'What's measured gets done'. As ever, Brian O'Connor was provocative and thought provoking. His problem as a consultant, he said was in persuading potential clients to accept the level of savings he said they could make. His straightforward model of how to do it and experiences in achieving it were worth hearing. He quoted GE strategies in becoming one of manufacturing's leaders, but omitted the 'Pay your CEO loads of money and perks when he retires'philosophy. And finally, the Best Factory 2001 explained how even the best companies run into squalls and have to pull in their sails to ride the storm. Southco did everything right;25%year on year growth for 5 years -BUT their main market was in components for telecoms enclosures and in 2001 these orders collapsed. About the same time the company was gaining awards -of which the greatest was the best factory award. But MD Andrew Mollow took action. Fortunately they had a high number of temps (up to 40%of assembly workers) because of the rapid growth and problems recruiting in Worcester, who could be laid off. Ahard line was taken in not replacing leavers and discipline was tightened to lose unsatisfactory workers. MRP was dumped and they moved totally to Kanban. After a year they have recovered to year 2000 and growth is returning. Andrew emphasised employee performance;not 'feely touchy', but setting high targets and monitoring to achieve them. A philosophy of teamwork and reward for good performance pervades the company. He did not mince words; everyone's performance is monitored and appraised and there is a direct link to pay rises and bonuses. Another excellent seminar with speakers who could put their ideas and experiences across. Keep up this quality, IOM. Peter Catton, FIOM Related Topics:
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