MTC Handbook Scenarios 1 & 3

5. Technology de-risking

5d. Virtual engineering

When the MTC invested in its CAVE, it opted for an acknowledged
market-leading immersive virtual engineering tool, IC.IDO, supplied by
Tier 2 MTC member ESI UK Ltd.

“ T he MTC’s CAVE is the perfect place to demonstrate to potential customers
what a difference our software can make to a company’s’ design processes –
radically reducing risk and increasing business profitability.
ESI UK Ltd joined the MTC to help educate UK OEMs, subsidiaries, Tier 1
suppliers and SMEs about the benefits of our immersive virtual
engineering technology.
OEM customers like Jaguar Land Rover have been using IC.IDO for many
years and it’s fully embedded into their design process. The MTC allows us to
give companies access to our solution and the CAVE, in a cost effective project
based model. We also run free taster days aimed at opening immersive virtual
engineering to a much wider audience.
There is a market perception that immersive virtual engineering is the preserve
of rich OEMs but that simply isn’t the case anymore. With cost effective desktop
licences, scalable monthly licences and a modular based solution, IC.IDO is
now within reach of all companies and the MTC is the place to discover
”what’s possible
ESI UK Ltd partner manager, Paul Dainty

To read more on the application of immersive virtual engineering tools, visit:
https://www.esi-group.com

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5d.1 Virtual engineering as a problem solving tool
Virtual engineering provides an insight into the ergonomic and environmental
impacts of any design concept. New product design, new production process
design, building or facility layouts, can all benefit from the use of virtual tools.
The ability to experience, to see and walk the design is invaluable in understanding
and exploring what if scenarios.

Drivers

As manufacturing processes become more complex, innovative tools are needed to
understand the full impact of any change. Virtual reality (VR) tools play a vital role in
this. Uses include;
  de-risking of investment decisions
  understanding the impact of change
  exploration of what if scenarios

Summary approach

Virtual engineering is used in conjunction with other problem solving tools and
techniques. It offers exploration of what if scenarios in a risk free environment without
disruption to current operations.

It underpins robust problem definition and scope agreement with customers or
project sponsors.

Benefits include;
  reduced costs and investment risk
  minimised investment in prototypes
  visualisation of desired future state
  identification of potential problems
  informed selection of best solution

See also: 9a.4
Virtual design review 5f.1
Discrete event simulation – future factory planning 5f.2
Facility layout prototyping

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5d.2 Optimise production process
Virtual engineering provides an insight into the ergonomic and environmental
impacts of any design concept. New product design, new production process
design, building or facility layouts, can all benefit from the use of virtual tools.
The ability to experience, to see and walk the design is invaluable in understanding
and exploring what if scenarios.

Increased customer demand for product complexity and customisation, coupled
with increased competition, drive the need for more complex production lines.
In turn, this increases the complexity of the production process. All process changes
carry risk. It is important these are clearly understood and addressed.

Drivers

Creating a virtual reality model of the production process to visualise what if scenarios
reduces the risk of design errors affecting production. It prevents expensive mistakes.
Virtual reality can be used where;
  a high risk investment decision is to be taken
  risk needs to be clearly understood to maintain profitability
  product complexity is increasing
  production line or process complexity is increasing
  the impact of new production processes is hard to establish
  it is difficult to gather data to optimise manufacturing decisions

Summary approach

Firstly, objectives and terms of reference are agreed with the customer or project
sponsor. Roles and responsibilities are defined.

The next step is to walk the process and design and build the virtual reality model.
It is important to check and confirm that all physical attributes and all constraints
are captured.

Define Build model, Trial to Host and Summarise
objectives incorporate confirm model facilitate points of
incorporates all virtual reality interest
physical requirements concern and
attributes and event agreement

constraints

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The running of the virtual event – including running of any chosen what if scenarios -
needs careful planning and facilitation.
Summarise findings from the event to present to the customer or project sponsor
and other stakeholders.

Case study:
Company Y approached the MTC for help in determining the best process flow and
shop floor layout in their existing facility to optimise the value stream for expected
future demand.
The MTC undertook a discrete event simulation (DES) for the process and machining
areas of the facility.
The DES study simulated the manufacturing process of three part families.
A 3D visualisation of the proposed layout was generated to assist with
stakeholder buy-in.

Baseline Model Future State Model

53 Operators 36 Operators
Single-skilled Set Multi-skilled Set

39 Manual Work Stations 29 Manual Work Stations
56 Production Machines 46 Production Machines

OPS 100 Operations in Total for Part 1 OPS 100 Operations in Total for Part 1
45 Operations in Total for Part 2 45 Operations in Total for Part 2
76 Operations in Total for Part 3 76 Operations in Total for Part 3

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Using the DES study, coupled with use of visualisation tools, allowed the company
to optimise the potential value stream for expected demand. It;
 Increased labour utilisation potential within the machining area by 12%
 Demonstrated that introduction of multi-skilled operators reduced overall

operators required by 32%
 Created a redeployment opportunity to other functions of the business for

accommodation of growth

This project was delivered with support from the CASiM2 project and the
European regional development fund 2007-13

Benefits
The use of virtual reality provides an insight into the overall production process and
informs decisions on change, mitigating the associated risk. Benefits include;
  the whole process and all production stages are understood
  the structure of plant resources are identified
  production bottlenecks are identified
  balanced line feeds
  production risks are mitigated

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“ W orking with the MTC allowed JJ Churchill Ltd to see a virtual model of the
factory floor layout – resulting in a reduction in time and resource to develop

manufacturing plans. JJ Churchill was able to accelerate its business plans

to bring forward commercial opportunities. This has resulted in capital cost

”savings of 82 per cent

Kevin McCormick, Engineering and Sales Director, JJ Churchill Ltd
JJ Churchill Ltd is a Midlands based SME manufacturing and supplying blades
and vanes in the compressor and turbine sections of gas turbine engines.

See also: 5c.2
Optimisation of manufacturing process 5f.1
Discrete event simulation – future factory planning 5f.2
Facility layout prototyping

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5d.3 Virtual proving of process design
Process design can be complex and costly. The more clearly the process is
understood and the sooner potential problems are identified, the greater the
likelihood of a cost effective and successful implementation.

Drivers

By understanding how all process elements interact before implementing change,
a business avoids the costs associated with delays to project completion and
subsequent process downtime. It also avoids the costs associated with discovering
changes that need to be made to equipment, hardware or software.

For example; a business may plan to install, or implement improvements to, an
assembly system consisting of conveyors, pick and place units, automated and
manual assembly units. Virtual proving will ensure that all elements work together, do
not clash, operate effectively and safely before the final system is specified, ordered
built and installed.

Virtual kinematic modelling is used to prove process design before facilities are
finalised and installed. A systematic approach to virtual kinematic modelling gives an
insight into the interaction of process elements and highlights potential problems.
Key drivers for virtual process design include;
  how can we minimise the capital investment risk?
  do we understand the design issues with the process?
  how can we optimise the position and orientation of facilities?
  how can we ensure that there are no collisions between items?
  how can we reduce the installation, start up and ramp up time?

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Summary approach

The first step is to carry out a process study to collect data, understand the current
process design, material flow, sequence and timings of tasks, materials and resources.

Next, gather data relevant to the planned process and facilities. This will include
machinery and equipment 3D CAD and robot models from potential vendors.

Carry out Carry out Develop Carry out Improve
process study/ 3D system kinematic simulation design/make
modelling Recommend-
gather data model
ations

After data conversion, carry out 3D and kinematic modelling. Define the kinematics
of individual resources in the process, cell or line and of those resources in relation to
each other. Then define the limitations for the kinematics.

Fig 5d.3.1: Kinematic modelling of a robotic cell Page 107
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5d. Virtual engineering

Carry out the placement of equipment, automated and manual workstations and
other assets in the model. This allows trials of model variants and the running of
simulation studies to check there are no collisions between moving parts or items.
Check the equipment can approach all target locations to perform the various
required operations.

If there are clashes or discrepancies, appropriate design changes can be trialled by
making amendments to the virtual kinematic model.

This virtual proving identifies the risks and improvement opportunities of the various
what if scenarios until an optimum solution is identified. It allows the business to
develop the best process design without costly trial and error in the real world
production facility.

Benefits

Collisions between moving parts in an automated or semi-automated process are
costly and, without simulation, can be difficult to predict. Building a virtual kinematic
model identifies potential clashes in advance and allows a revised, safer process to be
developed. Benefits include;
  highlighting process design issues early in the project
  reducing risk – problems resolved before equipment investment
  identifying best placement of resources, e.g. robots or conveyers
  ensuring that there are no collisions between moving items
  identifying the right resources to implement the process
  ensuring a safe working environment
  preventing costly maintenance and repair issues

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Chapter 5e

Incubation and laboratory pilot scale-ups

Introduction
  5e.1 Business incubation options
  5e.2 Minimise risk of using additive technology

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5e. Incubation and laboratory pilot scale-ups

Introduction

Support from an incubation centre – sometimes referred to as a factory in a box -
is a useful de-risking tool for both new start-ups and established businesses wishing
to develop new products or processes as a result of technology advances or
customer demand.

For a start-up business, an incubation centre provides flexible resources, know-how
and a supportive space to develop the process for product manufacturing and
assembly design. Ideally all services can be provided by one source on a short term
basis. This offers the business a fundamental grounding to achieve confidence in both
product and process to enable further funding to be obtained. In short, use of an
incubation centre accelerates high growth potential in a supportive space.

An incubation centre offers the same advantages to an established business. Use of
a separate location is ideal if the business anticipates that developing either a new
product or a new process in its existing facility is likely to disrupt current production.

The arguments for laboratory pilot scale-ups are similar. The technical challenges to
enable full scale production must be identified and addressed. It is wise to stay with
small scale production until operating procedures, specifications and standards
are established.

Incubation centres provide the ideal environment to prove these aspects. For
example, to minimise the risk of using additive technology, incubation options can
be used to prove the concept.

Incubation or the use of pilot scale products protects current operations.

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Coupled with the use of appropriate simulation tools and techniques, they
validate process development, allow make-versus-buy decisions and supply chain
development. They help the successful integration of new products or processes at
a factory or business level.

The MTC is ideally positioned to help accelerate
innovative concepts toward market launch

 Ideally positioned to
optimise products designs
for production with expert
knowledge of industry 4.0
manufacturing technologies
and their implications for
design and cost

 Can provide fully serviced
office and workshop
facilities as a flexible
variable cost to support
market seeding build and
volume manufacturing
process prove-out

 Extensive suite of design
and simulation tools,
including immersive 3D
visualisation, etc.

 Can provide gateways to
market through members
and their supply chains /
gateways to exit via
members’ corporate
venture capital divisions

Fig 5e.1: Description of services available at the MTC

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5e.1 Business incubation options
Incubation is aimed primarily at new start-up companies with a designed
product which may be first stage prototype ready. Typically these businesses will
have no defined operating procedures, standards or specifications. The use of a
business incubator enables the generation of these necessities. It also provides the
opportunity to de-risk the prototyping process through provision of the support
services required for early stage success in a single location.

Drivers

Incubation enables the first market seeding products to be produced with reduced
overall capital expenditure during the early stages. This, in turn, allows the business to
prove the commercial basis of the concept robustly to the next stage funder. Use of an
incubation centre can;
  signpost to initial assembly space with expert support
  offer flexible production space tailored to operational needs
  develop design iterations to suit various volume levels

Summary approach

To develop effective design for both manufacture and assembly and produce initial
market seeding products, an initial assembly space is required. The business will also
need expert support during the early stages of development, and this may not be
available in-house. The necessary equipment and assembly support staff need to be
combined with an effective process to produce the first seeding products.

Design layout Resource Support Produce Secure
the pilot initial start-up and evaluate next stage
funding

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Once the first one to 100 market seeding products are produced, the process and
scale can be validated for higher volumes and necessary changes in product and
process design identified. This enables a robust business case to be made for next
stage funding, allowing a company to move on to full scale production.

Benefits
Use of an incubation centre provides a resourced facility in a short timeframe.
The flexibility of this short term manufacturing space provides opportunities to
de-risk the prototyping process at minimal cost without detriment to existing
production processes. Other benefits include;
  reduced risk and minimised initial capital exposure
  prototype optimisation
  proof of concept and credibility
  validation of process, product and scale
  flexible and supported space provided by a factory in a box

5. Technology de-risking Page 114

5. Technology de-risking Fig 5e.1.1: Matrix of services required and available in an incubation centre CORE SERVICES ADDITIONAL SERVICES OTHER BUSINESS REQUIREMENTS 5. Technology de-risking

ADMIN FINANCE PRODUCT SUPPLY MANUFACTURE SALES & MKTG AFTER SALES 5e. Incubation and laboratory pilot scale-ups
DESIGN
Business Forecasting Supply Chain Manufacturing CCRRMM SSttrraatteeggyy Aftersales
Strategy planning SPtrrRoa&dteDugcyt Strategy Strategy Sales & mktg Strategy
Policies Capex R&D Demand Planning
Alliances planning Planning Policies Strategy
Policies Supplier Brand
Planning
Management

HR Risk Program Supply Chain Scheduling Demand & Quality
Legal Treasury Management Monitoring Monitoring forecast Warrenty
execution
IP Tax Design Demand Quality Distribution
KPI’s Change Management channels Service
Management Promotion Management
Logistics planning
Policies Parts
Page 115 IT Systems Accounting Mech Design Inventory Manufacturing KPI’s Disposal
Facilities Cost System Design Management Operations
Management Process Design Transportation Maintenance Marketing
Communications Management Procurement Communications
Tools
Order
Management

CRM Operations

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5e. Incubation and laboratory pilot scale-ups

5e.2 Minimise the risk of using additive technology
Additive manufacturing (AM) is one of the fastest growing manufacturing
processes because of its unique layer by layer approach. This technology opens
up new possibilities for innovation, offering technical, logistical and economic
advantages. For a business to realise the benefits of AM, a combination of expert
knowledge and simulation can be used to assess, develop and de-risk the
introduction of AM processes.

Drivers

AM is ideally suited to products and parts that are highly complex, customised
and will benefit from light weight. Generally, parts suitable for AM are required in
low production quantities with short lead times. AM has the potential to improve
products and overall manufacturing efficiency, providing increased competitiveness.
Use of incubation – or other small scale pilot options, with support from an
independent, expert partner - de-risks the adoption of AM processes. It allows a
business to;
  determine suitability of AM for the business (proof of concept)
  understand machine capability and constraints
  determine product reliability
  help safeguard intellectual property
  understand health and safety implications
  develop industry standards
  understand cost implications – the pros and cons

Summary approach

To introduce AM successfully into an active production environment a company first
needs to conduct a pilot study, e.g. have a partner with AM capability produce one to
five components. This will allow certification requirements to be determined.
An initial downselection of the most suitable process and equipment can be made.
Once future quality control requirements are specified, the business can also identify
the best inspection processes and equipment for its particular requirements.

Conduct Determine Specify Simulate Select
pilot study certification quality control factory layout software and
requirements requirements train designers

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The next step is to use the gathered information to create a model of the future
factory or an AM module within an existing facility. Using simulation tools, analyse a
variety of what if scenarios. Which of the options investigated offers the best match to
the business requirements? Are the projected benefits enough to justify the business
going ahead with AM? If yes, the business needs to determine the required design
software and train its design team.

Fig 5e.2.1: Example of an incubation hub for additive manufacturing

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Benefits

De-risking the introduction of AM using a pilot scale prototype run supported by
experts and simulation tools provides a well informed, low cost and time efficient
route. AM technology offers flexible, distributed manufacturing. It can;
  ensure a business understands capabilities and constraints
  mitigate the risks of investment – avoiding costly mistakes
  ensure expected benefits realised

Royal Academy of Engineering - Additive Manufacturing: opportunities and
constraints (2013) available at;
http://www.raeng.org.uk/publications/reports/additive-manufacturing

Additive Manufacturing Special Interest Group - Shaping our National
Competency in Additive Manufacturing (2012) available at;
http://www.econolyst.co.uk/resources/documents/files/Report%20-%20Sept%
202012%20-%20Technology%20Strategy%20Board%20-%20Shaping%20our%
20national%20competency%20in%20AM.pdf
This paper identifies key barriers to widespread commercialisation of AM technology.

See also: 10.1
Building a robust business case 5c.2
Optimisation of manufacturing process 6b.1
Feasibility study for additive manufacturing 6c.1
Design for additive manufacturing – capability demonstration 9a.6
Design for additive manufacture – skill transfer

5. Technology de-risking Page 118

Chapter 5f

De-risking relocation

Introduction
  5f.1 Discrete event simulation – future factory planning
  5f.2 Facility layout prototyping
  5f.ex Typical work programme checklist – relocating a
manufacturing facility

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Introduction
Relocating an existing manufacturing facility, or setting up a new manufacturing
facility is a major investment for any organisation. This chapter demonstrates how
simulation, modelling and the use of virtual reality can de-risk this investment.
It is not the purpose of this chapter to offer general advice on planning and executing
a facility relocation.
However, a typical work programme checklist, usable if relocating a manufacturing
facility is included within this section by kind permission of John Garside.

For further advice on planning and executing a successful manufacturing
facility relocation, or setting up a new manufacturing facility, see:
Plan to win. A definitive guide to business processes
by John Garside, published by Macmillan Business 1998

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5f.1 Discrete event simulation – future factory planning
Discrete event simulation (DES) is a powerful tool to help facility planning.
It allows analysis of current and future what if scenarios. It also ensures that a
facility configuration makes best – and most cost effective - use of the
available resources.

Drivers

Using DES can help the design of a facility. It ensures the best options for layouts
of the shop floor and other operational areas. This contributes to the business’s
efficiency, capability and capacity to meet future customer demand for production
volume and product mix changes. Using DES will ensure a facility plan considers;

  current and potential future demand
  potential future volume fluctuation
  potential future product mix variation
  strategic objectives set by the business
  business growth

Summary approach

Firstly, the current state is modelled and validated to create a baseline model.
This baseline is then used to trial what if scenarios, the results of which are used to
evolve the model to a desired future state. The result is a validated model, which
highlights a range of suggested layouts and operational characteristics to maximise
business performance.

Create Experiment Adapt model Validate future Recommend
baseline mode against according state model facility plan
baseline to results and highlight
implications

The use of DES allows a variety of facility layout configurations to be benchmarked
against desired business performance before the actual implementation of a chosen
solution. This allows stakeholders to make an informed decision based on the agreed
key performance parameters.

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Benefits

DES enables a business to create and compare strategic options and factory plans to
maximise business performance. It is used to optimise factors such as throughput and
flexibility, while minimising capital investment and risk. It clarifies any trade-offs that
need to be made. Benefits include;

  low cost trialling of strategic scenarios without disruption
  details a model of facility footprint, logistics and resources
  highlights work in progress and bottlenecks
  allows for low cost further analysis, e.g. ergonomic analysis
  improved resource use and operational efficiency
  confident decision making
  reduces overall capital expenditure
  de-risks investment and underpins a robust business case

See also: 3.1
Business strategy 4.2
Risk management 5c.1
Cost modelling 5c.3
Discrete event simulation

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5f.2 Facility layout prototyping
Changes to a business’s layout and/or location can have wide reaching
repercussions. Using visualisation de-risks the choices made and the investment
involved. Virtual reality can be used to visualise facilities. It allows a business to
explore the ergonomics of a facility, the positioning of equipment and services,
the impact of environmental building restrictions and any health and
safety issues.

Drivers

A virtual environment allows layout changes to be made in a risk free environment.
Prototype scenarios can quickly and easily be trialled and communicated to
stakeholders. This enables quick decision turnaround on the evolving design.
Visualisation can be used where;
  production lines need to be optimised
  moving or altering machine layouts is difficult
  change in one area has unknown impacts on other areas
  the need is to minimise time required for layout changes
  a cost-versus-benefit comparison of options is needed
  the need is to communicate effects of options to stakeholders

Summary approach

Firstly, data and facility requirements are collected and a simulation model of the
facility is built. This model needs to be confirmed by stakeholders. Once the virtual
reality model is developed it can be trialled at a virtual reality event. Such events need
careful planning and facilitation.

Define scope Build Test the Host Summarise and
and collect visualisation model visualisation communicate
background decisions made
model event.
data Adapt model

All affected departments need to work together to view the model and make
decisions needed to adapt it to a desired state. Findings and recommendations are
then presented to the project sponsor and other stakeholders.

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Benefits
Visualisation informs and de-risks physical and tangible changes. It allows all affected
departments and stakeholders to be involved before implementation.
Benefits include;
  easy comparison of as is versus to be layout
  easy comparison of multiple scenarios
  view of health, safety and ergonomic factors
  view of maintenance and serviceability factors
  view of human factors – what does it feel like?
  right first time
  minimal capital outlay

Fig 5f.2.1: “A picture tells a thousand words, and seeing our project come to life in the virtual reality
suite knocks the spots off a thousand pictures!”
Bob Panther, client of Hickman & Smith Architects [See case study]

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Case study:
The challenge for the team at Hickman & Smith Architects was to present their
proposed designs to their client in such a way that the client could make efficient,
visual-based decisions. The MTC computer aided virtual environment (CAVE) presented
an opportunity for them to fully communicate their design and allow the client to
experience it as if it were real.
Using the IC.IDO VR software from ESI, their 3D architectural design was imported into
the fully immersive environment. By using a combination of head-tracking and 3D
stereo visuals, the client was able to interact with the building in a very natural way
and systematically “walk” the spaces, offering comment or proposed design
changes instantly.
Using virtual reality as a design tool helps the process of identifying cost savings earlier
in the design stages and reduces the need for expensive variations once the project is
on site.
“The simulator shows everything exactly as it will be - and for anything that isn’t quite
right. It can be compared with alternatives and the best solution determined in a few
minutes, which is so much better than wasting time and materials on rectification
work or living with a compromised design. Walking around our virtual mill allowed
us to improve the quality of the building and reduce building costs at the same time.
We amended the virtual model by lowering the upstairs living area walls, and within
10 minutes, the changes were made to integrate window seats on top of the thick
stone walls and allow much improved views over the local countryside. A picture tells
a thousand words, and seeing our project come to life in the virtual reality suite knocks
the spots off a thousand pictures!”
Bob Panther, client of Hickman & Smith Architects

See also: 5d.2
Optimise production process with virtual reality 5d.3
Virtual proving of process design

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5f.ex Typical work programme checklist - relocating a manufacturing facility
This checklist is included by kind permission of John Garside.

Structure relocation project into a series of tasks. Assign a project manager to co-ordinate
activities and integrate day-to-day work schedules.

Phase 1

Product review. Establish design and manufacturing methods.
70% of manufacturing costs fixed by product design phase.
 Review portfolio of products to be made in new facility. Identify range, position

on life cycle, projected volumes. Classify products - runner, repeater, stranger.
Determine if to be handled in the same or different ways.
 Identify core manufacturing competencies to be kept in house. Identify
subcontract and standard bought out parts.
 Identify product CTQs and process capability required in new facility. Prepare
company level quality procedures.
 Define manufacturing and assembly methods to be used in new facility. Instigate
teams responsible for simplifying processes.

Phase 2

Determine how supply chain will integrate with new facility.
Over 50% of revenue normally spent with suppliers.
 Assess current supplier ability to manufacture to required quality.

Implement corrective action programmes. Confirm KPIs to be used.
 Determine if catalogue items can replace bespoke components.
 Identify alternative suppliers. Obtain quotes.
 Introduce supplier partnerships to jointly resolve problems and eliminate

non-value adding activity.
 Establish methods to provide visibility of future schedules.
 Agree logistics to protect components from damage.

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Phase 3

Identify requirements and plan move into new facility.

 Specify requirements for; area of site, area of buildings, type of construction,
general layout, ceiling height, office, production, storage and parking space,
transport and employee access, loading and unloading, lifting, equipment for
storage and transportation, inspection and test facilities.

 Specify floor loadings, cranes and bulk handling equipment, waste disposal and
material recycling facilities.

 Consider; heating systems for office and production areas, lighting requirements,
disabled access and facilities, toilet facilities, reception areas, public transport
for employees.

 Consider; estimated consumption of utilities, energy efficiency and targets,
environmental, health and safety requirements.

 Appoint architect to produce specification and design for new buildings.
 Produce overall layout detailing office, production and storage space.
 Obtain planning permission for new site. Check constraints of any restrictive

covenants do not prevent company operating efficiently.
 Provision necessary services; electricity, water, effluent and gas supplies. Check

available power levels satisfy future demand.
 Obtain quotes and appoint contractors for; site preparations, access roads and

foundations, erecting buildings, fitting out building and installing services, moving
and installing equipment.
 Appoint a‘clerk of works’to oversee all site and building activities.
 Establish information and communication systems needed both internally
and externally.
 Prepare an overall project plan with a time-phased list of tasks.

Phase 4

Define methods of working and operational parameters for new facility.Typically
savings of 25% are required to justify a move.

 Establish manufacturing vision and strategy.
 Define key operational performance parameters to underpin design of internal

manufacturing processes and supply chain. These will include targets for;
manufacturing and procurement lead times, WIP, stock, schedule adherence,
quality costs, productivity, OEE.

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 Define policies on; stockholding, concessions, performance monitoring, approach
to bottlenecks, shift patterns, use of overtime.

 Produce statement of incremental manufacturing cost, ensuring proposed
process is commercially viable and justifies move to new facility.

Phase 5

Design steady state manufacturing process. Must be designed to improve quality, reduce
costs and deliver 100% OTIF.
 Identify core modules needed based upon natural groups and possible need to

segregate runner, repeater and stranger products.
 Confirm strategic make vs buy decisions to retain core technologies in-house.
 For each module, identify; manufacturing operations, space required, takt time,

based on current and future demand.
 For each module design steady state manufacturing process, taking account of;

tasks, cycle times, product range and mix, special processes, tooling requirements,
material handling and inspection systems.
 Design information and logistics systems taking into account; interface between
module and suppliers, information flows needed to support manufacturing
process, integration with other information systems used by the business,
scheduling, capacity planning, deliveries from suppliers and to customers.
 Specify manufacturing and ancillary equipment needed.
 Complete job design. Include; number of employees required, shift patterns, team
working arrangements and organisational structure.
 Design detailed quality procedures and work instructions for each module.
Include tool management, planned maintenance and calibration systems.
 Determine personnel policies, including skill audits, reward schemes, training
plans and provision.
 Identify necessary support functions; procurement, logistics, scheduling, stores,
supplier payments, sales invoicing.
 Produce equipment and facility layout, and service installation drawings.

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5f. De-risking relocation

Phase 6

Design dynamic state manufacturing process.
 Evaluate robustness of steady state design against critical factors that can impact

delivery performance. Include; variation in product mix, order cancellation,
seasonal cycles, supply chain shortages or quality issues, customer specification
changes, rework and recalls and skills shortages.
 Using process failure mode and effects analysis prioritise risks, develop mitigation
actions, develop contingency plans. Consider building a process model using a
simulation package to run what if scenarios.
 Make necessary adjustments to steady state design to accommodate dynamic
change – based on FMEA and simulation outcomes.

Phase 7

Financial justification to ensure solution provides expected benefits.
 Confirm predicted manufacturing costs and associated savings will be achieved

by moving to new facility.
 Confirm capital investment required. Confirm cost of preparing site and installing

facilities. Estimate cost of training, relocation, redundancy, and recruitment.
 Determine ROI. Calculate cash flow and time to recover investment outlay.
 Compile board paper justifying move to new facility. Confirm financial and

non-financial benefits will be delivered by proposed move.

Phase 8

Preparation for relocation - detailed plan.
 Select core implementation team, including contractors.
 Carry out risk analysis and develop contingency plan to minimise disruption to

customer deliveries. Consider; length of time equipment unavailable, pull forward
of production, use of subcontract manufacture.
 Develop communication plan for workforce, customers and suppliers. Explain
options to affected employees and benefits of moving facility.
 Agree detailed layout drawings for modules, cells and support areas with
employees. Confirm lighting levels, power requirements, ceiling heights, fume
extraction, mechanical handling and access for each module.

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 Confirm performance specifications for capital equipment. Select suppliers.
Obtain firm delivery commitments.

 Determine how existing plant and equipment is to be refurbished.
 Agree detailed timing plan, sequencing when items of equipment are to be

moved with details of services needed to reinstate them.
 Prepare contractors’drawings for services, machine foundations and

communication networks. Select contractors. Obtain firm timescales.
 Confirm work needed to clean up vacated facility for possible sale.
 Confirm I.T. installation, hardware, software licenses and system support.
 Agree job descriptions for roles needed. Finalise numbers. Agree selection criteria.
 Determine training requirements to achieve planned flexibility. Identify who will

deliver training, costs and timescales.
 Agree acceptance checklists for manufacturing ownership of new plant and

equipment.
 Verify implementation and capital costs against budgeted figures.

Phase 9

Installation of facilities.
 Implement plan to protect customer deliveries.
 Remove and refurbish machinery to be installed in new modules or cells.

Refurbish any ancillary equipment to be moved.
 Construct facilities. Prepare necessary equipment foundations. Install services and

communication systems. Prepare floor covering. Paint cell boundaries.
 Select components for evaluation on new manufacturing and inspection

equipment. Conduct trials at suppliers applying acceptance criteria.
 Prepare standard operating instructions for new equipment.
 Install new and refurbished equipment, plus ancillary equipment.
 Select module leaders and teams. Assess training needs. Initiate training.

Agree continuous improvement teams.
 Confirm facilities and equipment meets specified performance criteria, and that

process capability meets or exceeds agreed targets. Include documentation and
required certificates.
 Agree hand over dates for modules and phased launch dates for cell teams.

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5f. De-risking relocation

Phase 10

Implementation programme.
 Confirm suppliers understand additional support required. Order components to

secure customer delivery through move.
 Adjust production schedules to build items to secure customer deliveries.
 Commission new and refurbished equipment.
 Manufacture first products as a joint project. Run prove out trials on tooling, work

instructions, measuring systems. Resolve deviations or problems.
 Implement planned multi-skilling. Train and launch continuous improvement

teams. Agree and drive module and cell KPIs. Agree and drive corrective action
system. Establish ongoing support to drive continuous improvement.
 Establish house-keeping rules for new facility.
 Implement planned changeover, tool management, preventative maintenance
and calibration systems.
 Confirm material planning and handling systems, Kanban sizes and gateway rules
in modules.
 Prepare report on manufacturing system design process, include lessons learnt.
 Officially launch new facilities. Hand over responsibility to operations team with
ongoing support from project team.
 Disband project and commissioning teams.

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6. How can technology help? Material Solutions Analysis Technology Development Engineering & Production & Operations 6. How can technology help?
Manufacturing Deployment Deployment
Development Introduction
The value accelerators within this chapter address how the use of technology delivers
Value Accelerators benefits to a business and which technology offers the best fit.

MRL 1 MRL 2 MRL 3 MRL 4 MRL 5 MRL 6 MRL 7 MRL 8 MRL 9 MRL10

Value Accelarators help with the: Planning, transition & execute resource Variable Demand
What to do requirements as new Fixed Demand
Where to do 4th Industrial Revolution
When to do technology waves hit e.g.
How to do Additive Manufacturing, Lasers,
Who Friction Welding, Robotics etc.
Execution . . .
stages of the journey

Page 133 Fig 6.1: Customer or competitor pressure will drive SMEs to engage with new technology.
Value accelerators can inform planning and deployment of this new technology.

Page 134

Chapter 6a

Review existing operations

Introduction
 6a.1 Discovery – identify potential
for improvements
  6a.2 Identify potential for automation
 6a.3 Review existing powder
handling system

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6. How can technology help?

6a. Review existing operations

Introduction
Any manufacturing business needs to review existing operations regularly to identify
opportunities for improvement.
Involving an independent partner with relevant expertise in this review process
allows current practice to be assessed from a fresh perspective. It provides informed
insight into how and where automation or other new technology can be applied to
improve productivity, reduce costs, enhance capability and increase flexibility.

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6a. Review existing operations

6a.1 Discovery–identify potential for improvements
The focus of a discovery process is to identify areas of opportunity for the business
to add value. This could be through capacity expansion, capability development,
continuous improvement, or, most likely, a combination of all three.
A discovery process, with input from an experienced independent partner, assesses
where the use of technology will add value to the business with a justified cost
base for the identified improvements. A roadmap to deliver the proposed solutions
into the current business processes can then be developed.

Drivers

The key driver behind a discovery process is the need for continuous improvement,
transformational change, or both. Without regular and systematic reviews to identify
potential improvements a business risks being outstripped by its competitors, or
overtaken by market and technology changes. The discovery process, with expert
support, will allow a business to;
  understand and analyse the current process
  identify potential for productivity improvements
  identify potential for cost savings
  receive impartial advice on a range of solutions
  evaluate if new technology is relevant and appropriate
  evaluate which new technology is relevant and appropriate

Summary approach

The initial phase of a discovery process captures the business requirements,
current capabilities and constraints. What are the known and unknown factors to
be considered? It then uses lean and six sigma tools and techniques to identify the
critical success factors for the business.

Potential improvements or capability developments can then be identified and
an initial downselection made. The next step is to scope out one or more project
proposals. A business case justification with an understanding of the scale and
impact on the business can then be drawn up.

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6a. Review existing operations

Lean & Six Sigma Tools and Techniques

Requirements Discovery Discovery Discovery Discovery Poster
Capture Phase 0 Phase 1 Phase 2 + R&D Project
RASIC Identi cation Business Case Solution Scopes
Matrix of Need Justi cation Identi cation

Programme
of Work
Proposal

Critical Business Case
Success
Factors

Fig 6a.1.1: The MTC discovery process

Benefits

The main benefit of working with an independent, expert partner during the
discovery process is the identification of both known and unknown factors. What key
factors actually have most influence on the strategic deliverables within the business?
It allows structured identification of potential technology or process improvements.
Benefits can include;

  increased productivity
  cost savings
  optimised asset utilisation
  increased flexibility, adaptability and capability
  process optimisation and standardisation

See also:
Developing a technology roadmap 2.1
Feasibility study for new technology investment 5b.1
Feasibility study – problem solution generation 6b.3
Measurement systems downselection 7d.1
Independent advice on optimal NDT methods 7d.2
Productivity improvement – embedding a lean culture 8.1

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6a. Review existing operations

6a.2 Identifying the potential for automation
The use of automation, technology and specific hardware and software can
bring many benefits to a manufacturing business provided it is planned and
managed carefully.

Drivers

The main driver for the adoption of automation is the need to increase productivity
and competiveness. If the business operates in a sector where skills are scarce, for
example aerospace, automation may also be the only viable option to increase
capacity significantly. Automation offers consistency of process, output and quality
as well as reduced operational costs.

Working with an independent partner with experience and expertise in automation
allows a business to consider all available options and provides an informed opinion
on their respective pros, cons and likely impact on operational processes. Measured,
unbiased advice may not necessarily be available from a potential equipment vendor.
It ensures a business avoids common pitfalls, by helping a business consider these
questions;
  do you understand the process that you want to automate?
  do you understand the implications of automating this process?
  do you understand the automation options that are available?
  do you understand the business case for automation?
  do you understand the potential impact on the business culture?
  have you the skills to get the best out of the automation?

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6a. Review existing operations

Summary approach

To identify the most suitable automation options, a business needs first to review the
current process, gathering information on operational and quality performance. It is
important to capture this thoroughly, and understand upstream and downstream
business and process drivers.

Review existing Collect Understand Consider most Develop
operations information the business appropriate business case
regarding the technology for automation
& understand main KPI’s drivers options
the process

The business needs to consider a range of automation options together with
respective benefits and impacts. Once the best feasible option is selected a business
case can be developed. It is important, as part of that business plan, to consider
not only capital investment, but also ongoing integration and support required for
the technology.

6a.2.1: Discrete event simulation being used, within the MTC computer aided virtual environment
(CAVE) to de-risk implementation of automation

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6a. Review existing operations

Benefits

The benefits of an impartial assessment of the potential for automation by an
unbiased expert can include;
  identification of potential for increased manufacturing flexibility
  the opportunity to increase consistency of supply
  the opportunity to increase process capability
  increased efficiency and productivity from the chosen automation

Case study:
Sandwell UK Limited is an SME working with motorsport, oil and gas and high quality
engineering companies carrying out specialised surface processing on components.
Its customers require a very fast turnaround of parts finished to a high quality.
To speed up processing, Sandwell is introducing an automated
shot-peening process. This will consist of a robotic booth and surface scanning
system combined with a method of rapidly programming the system to accommodate
a diverse and rapidly changing range of products.
“ T he MTC has developed for Sandwell a software suite that handles both scan data
and CAD data and post processors that integrate our robot software with the
minimum of human intervention. Speed of processing and ease of use have been
primary driving factors for this project and the MTC has met both the technical
requirements and timescales to allow Sandwell to introduce this new technology
into its latest machines”
Colin McGrory, technical director, Sandwell UK Ltd

For further reading on successful implementation of automation see:
“The implementation of robot systems.’’
by Mike Wilson  Pub: Butterworth-Heinemann

See also: 5b.3
Robot offline programming as a feasibility study tool 5d.2
Optimise production process with virtual reality 5d.3
Virtual proving of process design 10.2
Developing a business case for automation

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6a. Review existing operations

6a.3 Review existing powder handling systems
When reviewing existing, or indeed planned, powder handling systems the
business needs to consider;
  does the current powder handling system employ best practice?
  what potential is there to improve the system?
  how financially viable are those improvements?

Drivers

The drivers for reviewing existing powder handling systems are both technical and
commercial. It is essential to identify potential bottlenecks or variabilities in the
process. A business needs to consider what changes could improve robustness
or throughput. Often powder handling processes are highly volatile. Careful
consideration needs to be given to the safety of the current process and the health
and safety implications of any change. Independent, unbiased advice from an
organisation with expertise in powder handling systems will;

 identify any health or safety issues with the current or proposed powder
handling process

  identify potential for productivity and efficiency improvements
  provide an overview of powder handling systems available
  provide impartial signposting towards additional sources of support or advice

Summary approach

The first step is to capture the business need and understand the current powder
handling process. What are the capabilities and constraints? A systematic process
review will engage with both academia and industry in order to provide the most up-
to-date advice on powder handling technologies.

Understand Collect Analyse Identify Recommend
current system information improvements solutions
and customer

need

Relevant analytical tools then need to be employed to highlight potential areas of
improvement, including improvement through collaboration with suppliers. From the
options available the business can identify the best potential powder handling system
for its particular needs. It can then develop an improvement strategy to implement
the selected solution.

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6a. Review existing operations

Benefits
A key benefit of an independent and unbiased review of powder handling systems
is the potential increase in the robustness of the overall process. This can identify
potential savings, or reinforce any business case for further capacity expansion.
Benefits include;
  increased productivity
  reduced materials, powder and waste
  improved product quality
  a reduction in downtime
  the identification of any health and safety risks

Fig 6a.3.1: Powder sifting and handling equipment being used in the MTC powder characterisation
laboratory. The MTC is home to the National Centre for Net Shape and Additive Manufacturing

See also: 5e.2
Minimise risk of inserting additive technology 6e.2
Assessment of powder supply chain options 6e.3
Rapid metal deposition – capability demonstration

6. How can technology help? Page 144

Chapter 6b

Review existing products

Introduction
 6b.1 Feasibility study for additive
manufacturing
 6b.2 Feasibility study for net shape manufacture
 6b.3 Feasibility study – problem solution
generation
 6b.4 Prediction of weld quality

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6b. Review existing products

Introduction

Technology is developing at a rapid rate and is, in many instances, not only
changing the way that existing and new products are manufactured, but also how
they are designed.

It is essential that existing products and the way in which they are produced are
regularly reviewed. This ensures that the product continues to be produced at the
lowest cost, adding the best value to the business.

Without such regular reviews a business may miss opportunities to gain or keep its
competitive edge in a changing market.

Case study:
Over the last three and a half years a consortium of eight UK organisations have
worked together to develop a new method of repairing (remanufacturing) high value
engineering products.
The work, undertaken under the Technology Strategy Board supported RECLAIM
project, has resulted in the successful development of the world’s first, fully integrated,
remanufacturing cell. The cell, which incorporates automated inspection, laser cladding
and high speed machining, enables parts to be repaired to a consistently high quality,
with only limited manual intervention. Using specialised CAD/CAM software developed
by Delcam, together with the Sprint™ rapid scanning head developed by Renishaw, the
unit is capable of precisely adapting the remanufacturing process for the geometry of
the part being repaired.
Traditionally, remanufacturing of engineering components entails a series of opera-
tions requiring parts to be transferred around manufacturing facilities and often to sub-
contractors. Each process is labour intensive and dependent on the skill of the operator.
The new RECLAIM cell enables cost effective, rapid and reliable remanufacturing of high
value engineering parts in one place. The new system can also be used to manufacture
totally new complex metal parts, upgrade obsolete parts and reconfigure standard
parts for low volume applications.
The beauty of the RECLAIM system is that it can be fitted onto an existing machine
tool. When not in use the laser cladding and inspection heads are housed in the tool
changer, ready to be brought into action, enabling seamless transition from cladding to
machining and inspection operations.
The RECLAIM cell was assembled in the Manufacturing Technology Centre and tested
on a range of industrial components including automotive turbochargers produced by
Cummins Turbo Technologies Ltd who are a key end-user partner in the project.
The 6 RECLAIM industrial partners are; Delcam Plc, Renishaw Plc, Electrox, Precision
Engineering Technologies Ltd, Cummins Turbo Technologies and the MTC. The welding
Institute (TWI) and De Montfort University played a key role in the development of the
laser cladding system.

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Fig 6b.1: Engineers review a remanufactured part in a RECLAIM cell at the MTC

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6b. Review existing products

6b.1 Feasibility study for additive manufacturing
Additive manufacturing (AM), also known as 3D printing, is one of the fastest
growing technologies. AM is the process of joining materials to make objects
from 3D model data, usually layer upon layer.

Drivers
AM enables the customising of parts and design-for-function eliminating expensive
tooling and reducing material waste. Conducting feasibility studies before investing in
this technology is crucial to ensure that AM can be applied to any given component.
The conduction of such a study by an independent and experienced partner will
enable informed decision making and de-risk the process, by;
  reviewing the design and assessing its feasibility
  determining the design approach
  considering the required software and skill set
  understanding AM material properties

Fig 6b.1.1: Chain mail produced using additive manufacturing Page 149
6. How can technology help?