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Published by MOE MTC, 2016-09-26 11:04:13

MTC Handbook Scenarios 1 & 3

MTC-REACH-Full handbook

Why did the MTC team write
this handbook?

We got bored of sitting in meetings with‘knowledgeable’
people who kept telling us that only 3% of the SMEs in the UK
were capable of innovating. The manufacturing technology centre
(MTC) team don’t believe that. That’s why we wrote this handbook.

Every experience we’ve had, is that if a manufacturing company makes things,
then they’re ready to innovate. It isn’t necessarily the innovation academics think
of, nor designing the next iphone, but being a successful manufacturer implies
changing things.

At the MTC our mission is to‘inspire great british manufacturing’. We know making
money from making things is hard and complex. To survive, businesses have to
invest and improve. What we’ve created is a simple handbook, to suggest some
tools and technologies you can use and showing you where to get more help with
each one. We’re proud that it’s simplistic. We wanted to get a large quantity of top
level information into a short read. Please use it as a guide to traverse problems or
challenges you are facing.

If, after going through the book, you need us to send one of our manufacturing
general practitioners (GPs) to discuss your problem or look at your facilities, let us
know. As a public-funded organisation we can do that for free. Our GPs will be able
to advise you who to talk to next and perhaps point you towards a grant or voucher
to help with the costs.

The Manufacturing Technology Centre, Ansty Business Park Coventry Page 1
Why did the MTC team write this handbook?

Why did the MTC team write
this handbook?

We’d really like to hear if this book has helped.
What’s missing?  Has it made you do anything?  Is anything in here wrong?
Please, drop us an email at [email protected], even if it only says
‘I learned something.’

Neil Rawlinson Dr Clive Hickman Professor Ken Young

Why did the MTC team write this handbook? Page 2

Foreword

This handbook, produced by the MTC, is aimed at small and medium sized
manufacturing businesses (SMEs). Its goal;

To help SMEs across UK supply chains use manufacturing
technology to raise productivity

However, this handbook will be of interest to any business wishing to engage
with new – or new to them – manufacturing technologies.
The guide contains brief descriptions of more than 60

  value accelerators

A value accelerator is any toolkit, methodology, or transferable best practice that;
  improves productivity
  reduces cost
  embeds innovation
  de-risks the use of new technology in a factory

Time

From Idea R&D capSaecllity Deliver Income

70% Optimised solution

Ca£pex Risk

To Idea R&D capSaecllity Deliver Income

99% Optimised solution

Ca£pex Risk

Fig 1: By de-risking engagement with new manufacturing technology, a business accelerates
income generation from innovation

Foreword Page 3

DISCLAIMER:
This disclaimer governs the use of this publication and by using this publication, you accept the terms
of this disclaimer in full.
The information within this publication does not constitute the provision of technical or legal advice by
the MTC and any use made of the information within this publication is at the user’s sole discretion.
This publication is provided“as is”and MTC accept no liability for any errors within this publication or
for any losses arising out of or in connection with the use or misuse of this publication. Nothing in this
disclaimer will exclude any liability which cannot be excluded or limited by law.
This publication may not be copied without the MTC’s prior written consent. Enquiries should be
directed to [email protected] or 02476 701 677. Copyright © MTC 2015

Page 4

Contents list

Scenario based contents list

Contents list Page 5

Page 6

Contents list

Chapter Content guide - chapters Page
3–4
1 Content guide - scenarios 5–11
1a
2 Who is this book for? 17–22
3 23–26
4 Common mistakes when inserting new technology 27–34
5 35–44
5a Why change? 45–54
5b 55–56
5c Strategy 57–66
5d 67–78
5e Change management 79–96
5f 97–108
6 Technology de-risking 109–118
6a 119–132
Seek expert advice 133–134
6b
Feasibility studies 135–144
6c
Simulation and modelling 145–160
6d
6e Virtual engineering 161–174

Incubation and laboratory pilot scale ups 175–188

De-risking relocation 189–198

How can technology help?
Review existing operations
Is there potential for technology improvement?
Review existing products
Can alternative technology make it better, faster, cheaper?
Trial alternative technology
Is it right for your business?
Manufacturing problems and opportunities
How can technology help?
Material analysis

Contents list Page 7

Contents list

Chapter Levering benefit from technology Page
7 Machine and tool health optimisation 199–200
7a Workholding and changeover optimisation 201–212
7b Information management optimisation 213–226
7c Inspection systems optimisation 227–232
7d Levering benefit from operational efficiency 233–242
8 Design for new technology or process 243–260
9 Design for process 261–262
9a Problem solving tools - pre-production 263–280
9b Prototype optimisation 281–290
9c Building a robust business case 291–296
10 Next steps 297–308
11 Glossary, abbreviations, definitions 309–314
12 Index 315–316
13 Index of value accelerators – alphabetical
Index of value accelerators – chapter order 317
319–323
324–328

Contents list Page 8

Scenario based contents list

Scenario 1;
“We need to improve productivity to achieve a cost down of 25%”

If your business is in this scenario the value accelerators below can help;

Discovery - identify potential for improvements 6a.1 Page
Productivity improvement - embedding a lean culture 8.1 138
Embedding effective use of standard work 8.3 247
Embedding multi-skilling on key skills 8.4 255
Machine health optimisation 7a.1 258
Reducing unplanned downtime 7a.2 204
Identify options for tool life optimisation 7a.3 207
Embedding single minute exchange of dies 7b.1 210
Changeover reduction via advanced tooling and fixturing 7b.2 217
Adaptive, fast make, lightweight fixtures–feasibility study 5b.2 219
Optimisation of manufacturing process 5c.2 73
Machine trials 6c.1 84
164

Scenario 2;
“We need to double capacity”

If your business is in this scenario the value accelerators below can help;

Discovery - identify potential for improvements 6a.1 Page
Productivity improvement - embedding a lean culture 8.1 138
Developing a technology roadmap 2.1 247
31

Scenario based contents list Page 9

Scenario based contents list

Future state mapping 3.2 Page
Change management 4.1 41
Risk identification and management 4.2 48
Feasibility study for new technology investment 5b.1 51
Robot offline programming as a feasibility study tool 5b.3 70
Machine trials 6c.1 76
Cost modelling 5c.1 164
82
Scenario 3;
“We need the capability to take on more complex work” Page
250
If your business is in this scenario the value accelerators below can help; 153
157
Embedding use of practical problem solving tools 8.2 180
Feasibility study - problem solution generation 6b.3 182
Prediction of weld quality 6b.4 184
‘Weldability’studies for new material combinations 6d.2 178
Options for joining complex geometrical features 6d.3 223
Options for machining with high temperature alloys 6d.4 288
Prototyping and testing of advanced tools and fixtures 6d.1 286
Intelligent tooling and fixturing 7b.3
Reducing stress points within component design 9b.3
Assessment of flow and heat transfer 9b.2

Scenario based contents list Page 10

Scenario based contents list

Measurement systems downselection 7d.1 Page
Independent advice on optimal NDT methods 7d.2 236
Discrete event simulation 5c.3 239
87
Scenario 4;
“We need to (re)design our product for a new process” Page
267
If your business is in this scenario the value accelerators below can help; 270
272
Design for manufacture 9a.1 274
Design for cost reduction 9a.2 106
Parametric design 9a.3 284
Virtual design review 9a.4 286
Virtual proving of process design 5d.3 288
Reverse engineering as a problem solving tool 9b.1 149
Assessment of flow and heat transfer 9b.2 151
Reducing stress points within component design 9b.3
Feasibility study for additive manufacturing 6b.1
Feasibility study for net shape manufacture 6b.2

Scenario based contents list Page 11

Scenario based contents list

Scenario 5;
“We need to move into automation. Where do we start?”

If your business is in this scenario the value accelerators below can help;

Identify potential for automation 6a.2 Page
Key questions for your technology vendor 5a.2 140
Business incubation options 5e.1 63
Machine trials 6c.1 113
Robot offline programming as a feasibility study tool 5b.3 164
Virtual engineering as a problem solving tool 5d.1 76
Risk identification and management 4.2 101
Change management 4.1 51
Developing a business case for automation 10.2 48
302
Scenario 6;
“We want to move into additive or net shape technology. Page
Where do we start?” 151
149
If your business is in this scenario the value accelerators below can help; 170
172
Feasibility study for net shape manufacture 6b.2 168
6b.1
Feasibility study for additive manufacturing 6c.3
6c.4
Design for net shape – capability demonstration 6c.2
Design for additive manufacturing – capability
demonstration
Demonstrate net shape equipment and process

Scenario based contents list Page 12

Scenario based contents list

Rapid metal deposition - capability demonstration Page
Powder characterisation analysis 6e.3 196
Assessment of powder supply chain options 6e.1 192
Design for net shape – skill transfer 6e.2 194
Design for additive manufacture – skill transfer 9a.5 277
Options for post processing additive layer parts 9a.6 279
Powder handling systems - potential improvements 6d.5 187
Minimise risk of inserting additive technology 6a.3 143
5e.2 116

Scenario 7;
“We need a process to make our innovative product market ready”

If your business is in this scenario the value accelerators below can help;

Design for manufacture 9a.1 Page
Parametric design 9a.3 267
Virtual design review 9a.4 272
Discovering value from simulation tools 5c.4 274
Cost modelling 5c.1 93
Optimising your prototype 9c.1 82
Virtual proving of process design 5d.3 294
106

Scenario based contents list Page 13

Scenario based contents list

Scenario 8;
“We need to set up a new manufacturing facility”

If your business is in this scenario the value accelerators below can help;

Validate the market case 5a.1 Page
Business incubation options 5e.1 60
Facility layout prototyping 5f.2 113
Discrete event simulation – future factory planning 5f.1 124
Optimise production process with virtual reality 5d.2 122
Change management 4.1 102
48
Scenario 9;
“We have ageing technology. Do we; restore, replace like for like, Page
replace new?” 138
164
If your business is in this scenario the value accelerators below can help; 63
82
Discovery - identify potential for improvements 6a.1 300
Machine trials 6c.1
Key questions for your technology vendor 5a.2
Cost modelling 5c.1
Building a robust business case 10.1

Scenario based contents list Page 14

Scenario based contents list

Scenario 10;
“We need to develop a technology strategy”

If your business is in this scenario the value accelerators below can help;

Developing a technology roadmap 2.1 Page
Business strategy 3.1 31
Future state mapping 3.2 38
Develop an informatics roadmap 7c.1 41
Cost modelling 5c.1 231
82
Scenario 11;
“We need to develop a robust business case to source funding” Page
300
If your business is in this scenario the value accelerators below can help; 38
60
Building a robust business case 10.1 63
Business strategy 3.1 51
Validate the market case 5a.1 82
Key questions for your technology vendor 5a.2 305
Risk identification and management 4.2
Cost modelling 5c.1
Simulation as an aid to business case sign off 10.3

Scenario based contents list Page 15

Scenario based contents list

Scenario 12;
“We need to change our process – but don’t know where to start!”

If your business is in this scenario the value accelerators below can help;

Discovery - identify potential for improvements 6a.1 Page
Productivity improvement - embedding a lean culture 8.1 138
Developing a technology roadmap 2.1 245
31

= is an indicator of the resources required to deliver a particular
value accelerator. See chapter 11 – Next steps.

Scenario based contents list Page 16

Chapter 1

Who is this book for?

Introduction
  1a Common mistakes when inserting
new technology

1. Who is this book for? Page 17

1. Who is this book for?

WE NEED CUSTOMER APPROVAL TO... 1. We need to improve productivity to achieve a cost down of c.25% WE NEED CUSTOMER APPROVAL TO...
2. We need to double capacity

3. We need the capability to take on more complex work
4. We need to (re)design our product for a new process

5. We need to use automation. Where do we start?

6. We want to move into additive or net shape technology. Where do we start?

7. We need a process to 8. We need to set up a new 9. We have ageing technology.
make our innovative manufacturing facility Do we; restore, replace like
product market ready for like, replace new?

10. We need to develop a 11. We need to develop a robust business case
technology strategy to source funding for capital investment

12. We need to change our manufacturing process -

but don’t know where to start!

Fig 1.1: Scenarios typically faced by a small or medium business Page 18
1. Who is this book for?

1. Who is this book for?

Introduction
This handbook, produced by the Manufacturing Technology Centre, is aimed at
small and medium sized manufacturing businesses (SMEs).

Its goal;
To help SMEs across UK supply chains use manufacturing technology
to raise productivity
However, this handbook will be of interest to any business wishing to engage with
new – or new to them – manufacturing technology.
The guide contains brief descriptions of more than 60 value accelerators.

A value accelerator
is any toolkit, methodology, or transferable best practice that;
  improves productivity
  reduces cost
  embeds innovation
  de-risks the use of new technology in a factory

The value accelerators
within this handbook have been developed to help businesses wishing
to engage with new – or new to them – manufacturing technology.

Using the value accelerators
can support businesses in any of the scenarios shown opposite.

Value accelerators
This icon indicates a value accelerator within this handbook.

1. Who is this book for? Page 19

1. Who is this book for? Fig1.2: Example of value accelerators relevant to a business wanting to improve productivity Example: Scenario 1 - mapped to technology guide content 1. Who is this book for?

1. We need to CHAPTER 6A CHAPTER 5B CHAPTER 6C Examples of how a business might navigate the value accelerators are shown below.
improve Review existing Feasibility studies Trial alternative The contents listing at the front of this handbook give a guide to the most relevant
productivity to operations technology value accelerators for each scenario.

achieve a cost Is there potential for technology Is it right for your business?
down of c. 25% improvement?

…and from CHAPTER 7B

Work-holding and
changeover
optimisation

process CHAPTER 8
Levering benefit from

operational efficiency

CHAPTER 5C CHAPTER 7A
Simulation and Machine and tool
modelling health optimisation

Page 20

1. Who is this book for? Fig1.3: Example of value accelerators relevant to a business wanting to use automation – Example: Scenario 5 - mapped to technology guide content 1. Who is this book for?
or find out what it can do for them.
5. We need to use CHAPTER 6A CHAPTER 5A CHAPTER 4 CHAPTER 5B
automation. Where Review existing Seek expert advice Change management Feasibility studies
do we start? operations

Is there potential for technology
improvement?

CHAPTER 6C How do we CHAPTER 5D
Trial alternative fund it? Virtual engineering
technology
CHAPTER 4 CHAPTER 5E
Is it right for your business? Change management Incubation and
laboratory pilot scale
CHAPTER 10 ups

Building a robust
business case

Page 21

1. Who is this book for? Fig1.4: Example of value accelerators relevant to a business wanting to move into additive or Example: Scenario 6 - mapped to technology guide content 1. Who is this book for?
net shape technology
6. We want to CHAPTER 6B CHAPTER 5E CHAPTER 6C
move into additive Review existing Incubation and Trial alternative
or net shape products laboratory pilot scale technology
ups
technology. Where Can alternative technology make Is it right for your business?
do we start? it better, faster, cheaper?

How do we CHAPTER 10
fund it?
Building a robust
business case

CHAPTER 6E
Material analysis

CHAPTER 6C CHAPTER 9A CHAPTER 6E CHAPTER 6A
Trial alternative Design for process Material analysis Review existing
technology operations

Is it right for your business? Is there potential for technology
improvement?

Page 22

1. Who is this book for?

1a. Common mistakes when inserting new technology

This section lists common mistakes which can prevent a business reaping the benefits
of introducing new technology. Any business wishing to engage with new – or new to
them – manufacturing technology needs to avoid these.

Below each common mistake, examples of value accelerators are listed which, if
followed, de-risk the chance of making that particular error.

  Failure to get workforce buy in

Relevant value accelerators include: 3.2
Future state mapping 4.1
Change management 4.2
Risk identification and management 8.1
Productivity improvement - embedding a lean culture

Clearly the business needs to engage the workforce in deploying the above value
accelerators. Implementing them without involving employees at all levels and
accepting input from them, will not deliver the potential benefits.

  Underestimating importance of people in the system

This may manifest itself as insufficient training, or the employment of people who are
not capable of their tasks.

Relevant value accelerators include:
Change management 4.1
Embedding use of practical problem solving tools 8.2
Embedding effective use of standard work 8.3
Embedding multi-skilling on key skills 8.4

  Poorly written specification 5a.2
Relevant value accelerators include: 5b.1
Key questions for your technology vendor
Feasibility study for new technology investment

1. Who is this book for? Page 23

1. Who is this book for?

1a. Common mistakes when inserting new technology

The first value accelerator in the previous box emphasises the need for a robust, clear
and complete performance specification before choosing an equipment or system
vendor. The second emphasises the need for a robust feasibility study to inform and
de-risk any technology investment decision.

  Buying decision based on cost and not value
  Failure to calculate the business case

Relevant value accelerators include: 2.1
Developing a technology roadmap 3.1
Business strategy 3.2
Future state mapping 5a.1
Validate the market case 5c.1
Cost modelling 10
Building a robust business case

Investment in new technology can offer a business increased capability and flexibility
to adopt new processes, launch new products and move into new markets. The value
of this enhanced capability is not easy to capture within a business case without a
clear technology roadmap, sound market research and a well constructed cost
benefit model.

  Poor project management
  Failure to identify and manage risks
  Failure to deliver benefits projected in business case

Relevant value accelerators include:
Change management 4.1
Risk identification and management 4.2
Virtual engineering as a problem solving tool 5d.1
Feasibility study - problem solution generation 6b.3
Embedding use of practical problem solving tools 8.2
Minimise risk of inserting additive technology 5e.2

Taking unbiased independent advice, at specification stage, at feasibility study
stage, or both, increases the likelihood of identifying all potential risks. It will also
strengthen the mitigation actions taken to reduce those risks, and the robustness of
the contingency plans in place before a change project starts.

1. Who is this book for? Page 24

1. Who is this book for?

1a. Common mistakes when inserting new technology

  Blind faith in machine specification being achievable in all conditions

Similar logic applies to taking independent advice and seeking opportunities for
independent trials of equipment before a final investment decision is made.

Relevant value accelerators include: 5a.2
Key questions for your technology vendor 5b.1
Feasibility study for new technology investment 6c.1
Machine trials 6c.2
Demonstrate net shape equipment and process

 Inadequate understanding of the process and an assumption that it is simpler
than it really is

  Failure to control upstream processes
  Creation of bottlenecks in flow and single points of failure

Relevant value accelerators include:
Risk identification and management 4.2
Feasibility study for new technology investment 5b.1
Optimisation of manufacturing process 5c.2
Discrete event simulation 5c.3
Optimise production process with virtual reality 5d.2
Virtual proving of process design 5d.3
Discrete event simulation – future factory planning 5f.1

The sections on simulation and modelling (5c) and virtual engineering (5d) in this
handbook emphasise how simulation tools and techniques are used to de-risk
investment in new technology.

They offer the chance to see the full complexity of a new process – and the
interdependencies within it – in a risk free environment.

The effect of change in one area of a manufacturing process on other areas, upstream
or downstream, can be examined and problems resolved before introducing new
technology in actual production areas.

1. Who is this book for? Page 25

Page 26

Chapter 2

Why change?

Introduction
  2.1 Developing a technology roadmap

2. Why change? Page 27

Page 28

2. Why change?

Introduction

Many SMEs in the UK are unaware of the massive manufacturing technology step
changes coming on line. Indeed, even currently available technologies are often not
used effectively. Consequently, productivity lags behind countries where technology
– in particular automation – is more effectively deployed.

Use of industrial robots & productivity

Studies show investment 90Industrial robots per 10,000 workers 1.035 Automation and other
in automation to best in 80 Productivity 1.03 new technology adds
class levels would raise 70 more capacity per
productivity by 22% and 60 1.025 employee
employment by 7% 50 1.02
40 Key industrial sectors in
30 1.015 the UK are running out
20 1.01 of people not demand.
10 All studies show a
1.005 desperate crisis in
0 1 demographics and skills

0.995
0.99

2013 2014 2015

United Kingdom (industrial robots/10,000 workers)
North America (industrial robots/10,000 workers)
Germany (industrial robots/10,000 workers)
United Kingdom (productivity)
North America (productivity)
Germany (productivity)

Fig 2.1: Automation and labour productivity, a cross country comparison
Sources: International federation of robotics & OECD

In some sectors there is insufficient capacity in the UK SME supply chain. That is; there
are insufficient skills available simply to add more people doing more of the same.
The required capacity growth must come through investment in automation and
other modern technology.

2. Why change? Page 29

2. Why change?

The imperatives which drive an individual business to change may include;
The need to increase productivity and profitability

1. We need to improve productivity to achieve a cost down of c. 25%
The need to grow

2. We need to double capacity
8. We need to set up a new manufacturing facility
The need simply to survive

9. We have ageing technology. Do we; restore, replace like for like, replace new?
11. We need to develop a robust business case to source funding for capital investment
12. We need to change our manufacturing process – but don’t know where to start!
The need to respond to changing customer or market demands
and/or to respond to changing competitor strategies

3. We need the capability to take on more complex work
4. We need to (re)design our product for a new process
The need to introduce new products and/or to exploit an opportunity

7. We need a process to make our innovative product market ready
The need to respond to changing technologies

5. We need to use automation. Where do we start?
6. We want to move into additive or net shape technology. Where do we start?
10. We need to develop a technology strategy

Clearly the drivers behind change may overlap. Equally, value accelerators supporting
each scenario will overlap. In manufacturing technology, as in life, change does not
happen in isolation.

If a manufacturing business does not embrace the opportunities opened up by new
technologies it will, sooner or later, be overtaken by a rival business which does.

Whether this rival is a current competitor or a yet-to-be-established new business,
spotting the market opportunity affects only the timescale. It will happen.

2. Why change? Page 30

2. Why change?

2.1 Developing a technology roadmap
Engaging with new technology and embedding innovation is vital if a business
wants to protect and grow its margin. Technology roadmapping is a tool to focus
investment and improvement effort. Roadmapping identifies the optimum
order in which to invest in new equipment. It de-risks the complexity of
technology change.

Engaging with new technology and embedding innovation is vital if a business wants
to protect and grow its margin. Technology roadmapping is a tool to focus investment
and improvement effort. Roadmapping identifies the optimum order in which to
invest in new equipment. It de-risks the complexity of technology change.

Drivers

Businesses need to understand the new technologies available and how they can
improve productivity, capability and flexibility. Technology roadmapping can;
  clarify limitations of current technology
  raise awareness of technology opportunities
  identify the potential benefits of new technology
  underpin a robust business strategy

Summary approach

First establish the current state. Which technologies are already in place?
What are their strengths, weaknesses and performance constraints?

Where are What are the Define vision Develop Establish
you now? opportunities? and strategy strategic plan supporting
structure

Then identify the technology opportunities available. What is their fit with your future
needs? How feasible is their application within your business?

2. Why change? Page 31

2. Why change? Fig 2.1.1: Technologies are inter-dependant. Technology roadmapping ensures this is captured. Roadmapping Any technology roadmap depends upon the vision and strategy for 2. Why change?
It helps manage complex change projects the business.
Planning Development Deployment

Customer Product Action plans Market pull
requirements development

Value When will we deliver? Change management
de nition
Impact ranking Business Capability Risk management
What value will we deliver? roadmap development
What are the business drivers? “A roadmap is an extended look Technology push
Is a new business strategy needed? Link technology New skills required at the furure of a chosen eld of
Is technology strategy a gned to resources to market
business strategy? How will we meet cost, enquiry composed from the
opportunities performance and timing collective knowledge and
What do we need to make it happen?
Technology requirements? imagination of the brightest
New roadmap drivers of change in that eld"
technologies Technology required Galvin R, (1998), ‘Science roadmaps’
How will we deliver?
Product Technology Science, 280 (5385), pp, 803
Innovation development
Action plans

Change management

Process Risk management
development

Page 32 Dynamic (1-5 years horizon; review every 4-6 months)

2. Why change?

What markets will be targeted in the future? What product and process performance
levels are required? Of the potential benefits to be derived from technology, which are
the priorities? The roadmap needs to define timescales, milestones, resources, training
and support requirements.

Benefits
Developing a technology roadmap – aligned to the wider business strategy – is key to
managing the adoption and embedding of new technology. Effective engagement
with new technology is crucial to the short term prosperity – and long term survival -
of manufacturing businesses.
Benefits include;
  the de-risking of technology use and process change
  it underpins a sound business case – ROI based on facts
  it can result in increased market opportunities
  it can bring increased productivity, capability and flexibility

Fig 2.1.3: The powder characterisation laboratory at the MTC.
Supported work with TTI Group Ltd

Case study:
TTI Group Ltd aimed to set up a complete manufacturing facility to supply high value
components produced by advanced powder metallurgy manufacturing techniques.
The business needed to understand what further equipment, processes and skill sets
were needed to produce finished components.
The MTC reviewed industry standard and state of the art practices to understand
investment opportunity and the costs involved to extend TTI’s existing capability
into a growing high value manufacturing market. The MTC provided a phased
implementation plan to create a fully functional production line in the Letchworth
facility with specified equipment, cost, lead time and training requirements.

2. Why change? Page 33

2. Why change?

Following the delivery of the phased implementation plan TTI was able to make a
fully informed decision on the investment required to develop their new line.
“TTI found the staff at the MTC were very knowledgeable, and communicated well
and in great depth. By working with the MTC we were able to meet and discuss projects
with a range of potential customers.”
Tony Alderton, Plant Manager, TTI Group Ltd

TTI is part of the materials technology division of Dutch company Aalberts
Industries NV. It provides surface engineering and heat treatment services to the UK
engineering industry.

See also: 3.1
Business strategy 3.2
Future state mapping

2. Why change? Page 34

Chapter 3

Strategy

Introduction
  3.1 Business strategy
  3.2 Future state mapping

3. Strategy Page 35

Page 36

3. Strategy

Introduction

A business strategy describes how the business should look in the future and sets
the agenda for change. It gives direction to the business by positioning other
strategies, projects, activities and people policies. It prioritises investment and
improvement activities.

This chapter describes the steps needed to develop a business strategy and a future
state map, and issues that need to be considered.

Although they contain similar steps, each has a different focus. Together they set the
agenda for change and success.

Where are we now? Where do we want to be?
current state future state

How do we get there? Page 37
What needs to be in place?

What do we need to do?

Fig 3.1: Strategic business assessment

3. Strategy

3. Strategy

3.1 Business strategy
The business strategy is the umbrella under which all other strategies, projects
and activities sit. It describes how the business should look in the future and
identifies actions needed to take it there. The key to developing a successful
business strategy is to follow a structured process. This ensures all factors
affecting the business are considered.

Key inputs Key business and Key inputs
Competitor analysis stakeholder inputs Customer perceptions
SWOT analysis One to ones with key sta
Technological capability Mission Supplier feedback
Trade associations Other stakeholders

CRITICAL SUCCESS FACTORS
The whats

Customers Technology Finance People

Infrastructure

Enabling activites and projects
The hows

Timelines, target
and measures

Fig 3.1.1: Business strategy development process

3. Strategy Page 38

3. Strategy

Drivers

There are many challenges the business needs to consider when developing
the strategy. For example;
  where does the business want to be in the next 1 to 5 years?
  how does the business compete in a competitive market?
  how does the business grow profitability and market share?
  what do customers and stakeholders want?
  what are the strengths and weaknesses?
  what needs to be in place to get to where it wants to be?

Summary approach

It is essential the whole management team takes part in the development of the
business strategy. Only full involvement achieves buy in and commitment. In building
the strategy there must be a clear understanding of the current business environment
and agreement on where the business wants to be.

Where are Where do we What needs Prioritise Measure
we now? want to be? to be in place? action plans progress

Each of the key steps shown above must be considered and populated.

Where are we now? needs intelligence on the current business environment.
Where do we want to be? should include a mission statement agreed by all the
management team. What needs to be in place? activities and projects need to be
agreed including prioritised action plans. Measure progress should include an
agreed review schedule.

3. Strategy Page 39

3. Strategy

Benefits

A well constructed business strategy gives a clear picture of the desired future state
of the business. Well communicated, it wins buy in and commitment from managers
and staff to change and improvement. It will inform and influence decisions on
investment, people policies, systems, projects, marketing opportunities, operations
and new technologies. Benefits also include;
  a clear view of the desired future state of the business
  an agreed mission to share with employees and stakeholders
  understanding of technology, processes and systems needed
  an agreed prioritised action plan

For useful advice on developing an effective business strategy, visit the
website of the government backed business growth service (BGS).
This incorporates the manufacturing advisory service (MAS):
www.mas.businessgrowthservice.greatbusiness.gov.uk/manufacturing-support
BGS offers support to businesses with the potential to improve and grow. It can help
a business achieve its potential by identifying barriers to growth and providing tailored
support that fits the specific business needs, including coaching, consultancy,
mentoring, training, access to finance and export advice.
Specifically, BGS supports a business in building clear business and product strategies
to support current plans and future opportunities.
Call the BGS helpline on 0300 303 0034
Open Monday to Friday 9am - 5pm or get in touch by email at [email protected]

For further reading on strategy development see:
Plan to win. A definitive guide to business processes
John Garside, published by Macmillan Business

For further reading on tools to ensure strategy aligns to customer
requirements see:
Value proposition design and Business model generation
Published by strategyzer.com/vpd

See also: 4.1
Change management

3. Strategy Page 40

3. Strategy

3.2 Future state mapping
Establishing desired future state requirements for the business and its key
processes is fundamental to the development and implementation of a business
strategy. In essence a strategy is used to guide and direct an organisation from its
current state to its desired future state.

Drivers

A business needs to create a vision of the performance levels and operating
environment it needs to achieve. This must take into account customer and
stakeholder requirements identified. In particular;
  does the business understand what customers really need?
  which process steps create value and which are waste?
  what process improvements are necessary?
  how does the business control and prioritise work?
Future state mapping provides a route to guide the journey from the present situation
to the required performance levels.

Summary approach

The approach taken when future state mapping is illustrated below:

Assess present Identify Identify Construct Identify
situation future needs processes future improvement
and metrics
state map priorities

An initial assessment of the present situation and performance levels is required.
Then, identification of the future customer and business needs, key processes and
metrics to be used to measure performance is required. The future state map can then
be constructed. This provides a visual identification of improvements required to key
processes, and technologies required to achieve the future state.

3. Strategy Page 41

3. Strategy

Future state map 3 Month schedule
Weekly call
3 Month schedule

Production Customer
Control

Supplier Daily call In Daily
Daily
Da7ys
Da5ys Assembly Da2ys

D2ays Pressing

Fig 3.2.1: Example of a future state value stream map

Benefits

The use of future state mapping will support the business strategy and ensure that
the required improvements are implemented resulting in;
  waste and wasted effort identified and eliminated
  non value added activities minimised or eliminated
  improvement focused on the key processes/operations
  increased productivity and profitability

3. Strategy Page 42

3. Strategy

Fig 3.2.2: Smethwick Drop Forge one of the first SMEs in the West Midlands
supported by the MTC through the CASiM2 programme. Approached the MTC
on receiving a large project for a potential customer that meant working with
a new material
Case study:
Using future state process mapping, Smethwick Drop Forge were able to visually
illustrate the inputs, outputs, activity steps, decision points and functions that would
be needed to work with the new material. This allowed the company to determine the
right process, timings and costing.
“The use of future state process mapping allowed Smethwick Drop Forge to improve
their process planning understanding and set the momentum to reveal opportunities
for process improvement. Access to the best-in-breed technology and expertise has
improved Smethwick Drop Forge’s commercial efficiency.”
Peter Parkes, Director of Smethwick Drop Forge
Smethwick Drop Forge is a Worcester based manufacturer producing highly
engineered connecting rods for major truck and automotive OEM’s.
This project was delivered with support from the CASiM2 project and the
European regional development fund 2007-13

See also:
Developing a technology roadmap 2.1

3. Strategy Page 43

Page 44

Chapter 4

Change management

  4.1 Change management
  4.2 Risk identification and management

4. Change management Page 45

Page 46

4. Change management

Introduction
Introducing change into a business can cause major disruption if people factors are
not systematically and carefully managed. A failure to win buy in from employees and
other stakeholders significantly reduces the chance of realising expected benefits
from any change project.
Change management is a process for managing the people side of change.
A well thought out change management process will engage employees and other
stakeholders and reduce resistance to the change.
All change programmes come with risk. Early consideration given to identifying
risks, their potential impact, and a risk mitigation plan will significantly reduce
likely disruption.
A robust risk identification and management plan ensures that risks are identified
and mitigation actions are put in place and understood.

4. Change management Page 47

4. Change management

4.1 Change management
When major change is introduced into an organisation it will inevitably impact
on people; on what they do and how they do it. The way people are engaged and
communicated with has a significant impact on the degree of their support and
commitment to the change. Change management is concerned with these people
issues and is an essential ingredient for successful change.

Prepare for Processes Assess
change readiness

Systems CHANGE People Manage
Customer Reducing change

costs

Review & Technology Design & plan Buildings
feedback communication

Faster/ Organisations
cheaper
Relocations

Fig 4.1.1: Change management process Page 48
4. Change management

4. Change management

Drivers

It is essential that change is managed in a structured and consistent way to win buy
in and commitment. A change management plan must take into account all likely
impacts on employees and other stakeholders and ensure their main issues are
addressed. A business needs to consider;

  how it will manage the people side of change to win buy in?
  does it understand the scope of the change?
  does it understand who is affected?
  does it understand how many people are affected?
  how will it communicate progress?
  does it have a robust change management plan (CMP)?
  does the CMP address all the people elements of the project?
 does it have a group to monitor the CMP progress and take corrective action

where required?

Summary approach

In developing the change management strategy it is important that input is gained
from the project sponsors and the senior management team. Together they need
to define and develop the change management strategy and agree roles and
responsibilities in leading the change.

Prepare for Assess Develop Plan Review
change readiness for change plan communication and feedback
change and and manage
and agree define scope and agree
process key messages

4. Change management Page 49


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