MTC Handbook Scenarios 1 & 3

10. Building a robust business case

10.1 Building a robust business case
It is often necessary to seek funding for the purchase of new technology and to
implement the process changes it will require. Whether this is sought from internal
stakeholders, or potential investors, it is essential that the request is supported by
a robust and well-presented business case. This becomes even more important
when the technology to be adopted is leading edge and the process changes
planned, complex.

Drivers
The business case must communicate the opportunity in a positive but realistic way.
It must explain;
  the reasons investment is required and over what period
  full investment requirements, not merely initial capital costs
  the technology to be adopted, its major features and the additional capability it offers
  why the technology is considered the most suitable option for the business
  details of projected reductions in operating costs
  details of projected additional revenue streams
  how implementation will be managed
  how risks have been identified, and how they will be managed
Involvement of an impartial partner with expert knowledge of the technology and its
challenges, can ensure the business case is informed and robust. This support ensures
all risks are identified and that the plans to mitigate those risks are sound. It increases
stakeholder or investor confidence that the projected benefits can be realised.

10. Building a robust business case Page 300

10. Building a robust business case

Summary approach

When building a business case, it is essential to work closely with all stakeholders so
everyone understands fully the opportunity the technology presents.

Understand Describe Prepare the Develop Review and
and describe the business business case implemen- present case
technology/ tation and
opportunity benefits risk plans

The business case needs to include all the projected benefits. That is, both cost
reduction benefits and the increased capability and flexibility brought to the
business. Both an implementation plan and a robust risk management plan need
to be included.

It is important to present the business case in the most compelling way. The use of
simulation tools and techniques can help explain complex technologies and get key
messages across.

Benefits

The benefits of seeking expert support to develop a positive but, balanced, robust
business case include;
  demonstrating that implementation challenges are understood and addressed
  demonstrating that all risks are identified and can be managed
  convincing stakeholders or investors that projected benefits are realistic
 ensuring likely concerns are addressed, so reducing the number of iterations with

stakeholders or investors
  maximising the likelihood of obtaining the investment

See also: 3.1
Business strategy 4.2
Risk identification and management 5a.1
Validate the market case 5a.2
Key questions for your technology vendor 5b.1
Feasibility study for new technology investment 5c.1
Cost modelling

10. Building a robust business case Page 301

10. Building a robust business case

10.2 Developing a business case for automation
Having identified an opportunity to apply automation and the potential benefits
it can bring, the next challenge is to justify the investment needed to successfully
adopt and fully implement that automation.

Drivers

Whether the funding needed is to be secured from internal stakeholders or from
external investors, investment in automation will only go ahead if a robust business
case can be made. Any business case for automation needs to explain;

 the full operational and support requirements, if the automation is to be
successfully adopted

 the full lifecycle costs of the automation – not just initial capital outlay
  the reasons why the investment is required
  the cost savings automation can offer on existing revenue streams
  the additional capabilities and flexibility automation can offer
  the new revenue streams automation can open to a business

Involvement of an independent partner, experienced in managing successful
automation adoption, can ensure the business case is informed and robust. It ensures
risks are identified and that the plans to mitigate those risks are sound. It increases
stakeholder or investor confidence that the projected benefits from automation can
be realised.

Summary approach

The automation business case needs to be developed in a structured and thorough
way. The complex features of the proposed automation and its support systems need
to be explained so stakeholders or investors can gain a better understanding of its
capabilities and challenges.

Understand Describe Prepare the Develop Review and
and describe business business case implemen- present case
automation benefits tation and
risk plans

It is important the business case presents the full lifecycle costs involved in successful
automation adoption. Without investment in operational and support systems the
expected business benefits are unlikely to be realised.

10. Building a robust business case Page 302

10. Building a robust business case

Likewise, the business case needs to present the full benefits available from
automation. A business case which concentrates only on existing, or already
identified, product streams may understate the opportunities additional capability
and flexibility will offer the business. Consideration needs to be given to the
opportunity cost of not investing in automation. If the investment does not go
ahead, what future market opportunities will divert to more flexible and adaptable
competitors?
The business case needs to be supported by both an implementation plan and a
sound risk management plan. Once all this is completed, a financial assessment can
be conducted and the results presented to stakeholders and potential investors.
It is important to present the business case in the most compelling way. The use of
simulation tools and techniques can help explain the complexities of the proposed
automation and demonstrate its capabilities.

Fig 10.2.1: An example of automation Page 303
10. Building a robust business case

10. Building a robust business case

Benefits

The benefits of seeking support from a partner with automation expertise to develop
a positive but, balanced, robust automation business case include;

  an impartial, feasible and compelling business case is compiled
 it ensures the most appropriate automation option for the business

needs is chosen
  it ensures a realistic and credible return on investment analysis
  addresses likely concerns – so reduces iterations with investors
 it increases stakeholder and investor confidence that projected

benefits will be realised
  increases probability of obtaining the investment

See also: 4.2
Risk identification and management 5a.1
Validate the market case 5a.2
Key questions for your technology vendor 5b.3
Robot offline programming as a feasibility study tool 6a.2
Identify potential for automation

10. Building a robust business case Page 304

10. Building a robust business case

10.3 Simulation as an aid to business case sign off
A well-structured and presented business case is crucial to securing stakeholder
approval or external investment. Often complex opportunities can be difficult
to explain and visualise, particularly if automation and major layout and process
changes are needed. The use of simulation tools and techniques allows potential
investors to visualise and experience the benefits the investment will deliver.
A selection of these tools are described by the value accelerators within chapters 5c,
simulation and modelling, and 5d, virtual engineering, of this handbook.

Fig 10.3.1: Assessing proposed automation within the MTC computer aided virtual environment

10. Building a robust business case Page 305

10. Building a robust business case

Drivers

It is important that a business case presents the investment opportunity clearly and
in a compelling way. Using simulation tools and techniques will contribute to the
success of the business case by;

  enabling opportunities to be showcased, seen and experienced
  allowing technology features to be seen and explained
  enabling design features to be seen and experienced
  convincing investors that risks have been minimised
 allowing concerns to be raised and resolved, so reducing the number

of iterations with investors

Summary approach

The first step is to engage with all relevant stakeholders to ensure all the objectives
and requirements of the business case presentation are captured. From this
discussion a story board can be built, clearly explaining the deliverables and key
messages and a presentation plan produced. A decision is needed on the optimum
display technology. Cost and timescales can drive this, but also the complexity and
size of the investment decision.

Engage with Select display Design VR or Trial and Host the
stakeholders technology simulation validate simulation

model event

The chosen simulation model is designed, ensuring that all the relevant features of
the technology, support systems and interactions are incorporated. The simulation
model is trialled and validated in a safe environment. The structure, content and
roles for the final presentation event need to be agreed. Finally, the simulation event
is hosted and any feedback or concerns gathered.

10. Building a robust business case Page 306

10. Building a robust business case

Benefits

Using simulation tools and techniques to support the business case will give many
benefits including;

  allowing the investment topic to be quickly visualised
  taking people from zero knowledge to intuitive expertise
  informing investor discussions
  informing investor decision making
  reducing real and perceived investment risk
  increasing the likelihood of investment

See also:
Simulation and modelling – all value accelerators 5c
Virtual engineering – all value accelerators 5d
De-risking relocation – all value accelerators 5f

10. Building a robust business case Page 307

Page 308

11. Next steps

Next steps
As an independent, collaborative and government backed organisation, the
MTC can help your business;
  improve productivity
  reduce cost
  embed innovation
  de-risk the use of new technology in a factory
To find out how, please contact us on;
tel: +44 (0) 2476 701 667
email: [email protected]
The value accelerators within this handbook are only a selection of the support
available from the MTC and its partner organisations.
MTC engineers combine theory and, more importantly, years of hands on practical
experience to create sustained profitable growth for your business. There is also the
potential to become involved in the wider MTC group and its like-minded members.

Our partnership with the MTC provides us with a collaborative environment,
allowing for the realisation of a joint vision for UK Manufacturing. ATS are
able to tap into the wealth of knowledge and experience that both the MTC,
and other member organisations offer, which in turn delivers real value
from our investment.
Kevin Partington
UK Managing Director, ATS Global

11. Next steps Page 309

11. Next steps

What level of investment is required?

The MTC offers a complimentary full day review of your operations. This can discover
opportunities for cost saving, de-risking and accelerating the introduction of
technology and improved processes into your business. The MTC also encourages
businesses to visit its world class facility to see cutting edge technology in use and
discuss the benefits it can deliver with highly skilled engineers, many of whom are
leading experts in their field.

The MTC facility exudes excellence from the moment you step through the
front door. Steve and his team carry an air of calm and confidence whilst
transmitting an absolute passion for what they do. Best afternoon I’ve spent
away from the office for a long, long time. Send me some boxes to tick,
because the visit ticked them all.

Colin St.John
Freefoam Plastics

The resources required to deliver the value accelerators described in this handbook
will vary depending on the specific business circumstances and scope of the
project to be delivered. However, to provide an indication of investment levels,
value accelerators have been grouped as follows;

indicative investment starts from c. £3k
indicative investment starts from c. £10k
indicative investment starts from c. £20k

The listings given at both front and back of this handbook show the group to which
each value accelerator belongs.

11. Next steps Page 310

11. Next steps

Projected return on investment

Projected return on investment (£k) 1000 Resources required to deliver the
900 value accelerators depends on scope
800 and requirements.
700 However, as a guide, value accelerators
600 are grouped to indicate typical
500 investment required.
400
300
200

120

110

100

90

80

70

60

50

40 £20k+

30 ‘s c

20 £10k - £20k

10 From £3k ‘s b
0

‘s a

Investment Projected return on investment

Fig 11.1 Indicative investment and projected return on value accelerators

11. Next steps Page 311

11. Next steps

Is funding support available?
Support can be made available for SMEs to encourage engagement with new
technology and embedding of innovation. If an SME invests in 5 days of support from
the MTC, up to a further 5 days of funded support may be available. If an SME invests
in additional support, again matching days may be funded. note1

Partner organisation:
For advice on other support available to your business, visit the website of the
government backed business growth service (BGS). note1
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. They work
closely with;
  local growth hubs
  local enterprise partnerships (LEPs)
The BGS team local to your business can tell you about support available both
nationally and in your area and offer access to finance advice.
Call the BGS helpline on 0300 303 0034
Open Monday to Friday 9am – 5pm
Or get in touch by email at [email protected]

The business finance guide. A journey from start-up to growth. Updated August 2015.
This guide can be downloaded from; http://british-business-bank.co.uk/bfg/
The British Business Bank has jointly published this guide with ICAEW’s corporate
finance faculty. The guide sets out finance considerations and options for businesses
at various stages, providing advice and sources of information to help them start,
grow and prosper.

11. Next steps Page 312

11. Next steps

Register to receive updates n­ ote2
The MTC will update this handbook with fresh information and additional
value accelerators.
Register to receive these complimentary updates by sending your
business contact details to;
email: [email protected]

Let the MTC know what you think of this handbook
The goal of the MTC change handbook is:
To help SMEs across UK supply chains use manufacturing technology
to raise productivity
To meet this goal the MTC welcomes feedback. Help make the updates and future
versions of the handbook better, by letting us know;
  what you found useful
  what could have been better
  content you would like to see included
email: [email protected]

note 1:  Information correct at time of going to press
note 2:  To receive updates to the MTC change handbook, please provide a named contact individual. Thank you.

11. Next steps Page 313

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12. Glossary, abbreviations, definitions

AM/ALM 5Ys See Page
ATF 7 Wastes Fig. 8.2.2 252
BGS Additive (layer) manufacturing Fig. 8.1.1 248
CAD Advanced tooling and fixturing 149
CAM Business growth service 6b.1 219
Computer aided design 7b.2 40
CAVE Computer aided manufacturing 3.1 -
CFD Catapult centre - -
CIP Computer aided virtual environment - 56
CMM Computational fluid dynamics Fig. 5.1 -
CMP Cold isostatic pressing - 81
CNC Co-ordinate measurement machines 5c intro -
CTQ Change management plan - -
DES Computer numerically controlled - 49
DfAM Critical to quality 4.1 -
DfM Discrete event simulation - -
DfNS Design for additive manufacturing - 87
DfX Design for manufacture 5c.3 279
EDM Design for net shape 9a.6 267
FE/FEA Design for X 9a.1 277
FMEA Electric discharge machining 9a.5 266
HIP Finite element (analysis) 9a intro -
ICT Failure mode effects analysis - 81
Hot isostatic pressing 5c intro -
Information and communication technology - -
- -
-

12. Glossary, abbreviations, definitions Page 315

12. Glossary, abbreviations, definitions

KPI Key performance indicator See Page
MAS Manufacturing advisory service - -
MIM Metal injection moulding 40
MOE Manufacturing operational efficiency 3.1 -
MTBF Mean time between failures - 246
MTTR Mean time to repair Fig 8.1 206
NDT Non-destructive testing 206
NPD New product development 7a.1 239
NPI New product introduction 7a.1 -
NPL National physics laboratory 7d.2 -
NS Net shape - 235
NURBS Non uniform rational B-spline - -
OEE Overall equipment effectiveness 7d intro 285
OEM Original equipment manufacturer - -
OTIF On-time in-full Fig 9b.1.1 -
RASIC Responsible approve support inform consult - -
RE Reverse engineering - 139
ROI Return on investment - 284
SMD Shaped metal deposition Fig 6a.1.1 -
SME Small and medium enterprises 9b.1 196
SMED Single minute exchange of dies - -
SWOT Strength weakness opportunity threat 6e.3 217
TRL Technology readiness level - -
VDR Virtual design review 7b.1 55
VR Virtual reality - 274
WIP Work in progress 5 intro 101
9a.4 -
5d.1
-

12. Glossary, abbreviations, definitions Page 316

Chapter 13

Index

13a Index of value accelerators - alphabetical
13b Index of value accelerators - chapter order

13. Index Page 317

Page 318

13. Index

13a. Index of value accelerators - alphabetical

Alphabetical

Adaptive, fast make, lightweight fixtures - 5b.2 Page
feasibility study 6d.5 73
Additive layer parts, options for post processing 9a.6 187
Additive manufacture, design for - skill transfer 6c.4 279
Additive manufacturing, design for - 6b.1 172
capability demonstration 5e.2 149
Additive manufacturing, feasibility study for 7b.2 116
Additive technology, minimise risk of inserting 6d.1 219
Advanced tools and fixtures, changeover reduction via 10.2 178
Advanced tools and fixtures, prototyping & testing of 6a.2 302
Automation, developing a business case for 10.3 140
Automation, identify potential for 10.1 305
Business case sign off, simulation as an aid to 5e.1 300
Business case, building a robust 113
Business incubation options 3.1 38
Business strategy 4.1 48
Change management 7b.2 219
Changeover reduction via advanced tools and fixtures 5c.1 82
Cost modelling 9a.6 279
Design for additive manufacture - skill transfer 6c.4 172
Design for additive manufacturing - 9a.2 270
capability demonstration
Design for cost reduction Page 319

13. Index

13. Index

13a. Index of value accelerators - alphabetical

Design for manufacture 9a.1 Page
Design for net shape - capability demonstration 6c.3 267
Design for net shape - skill transfer 9a.5 170
Design review, virtual 9a.4 277
Design, parametric 9a.3 274
Discovery - identify potential for improvements 6a.1 272
Discrete event simulation 5c.3 138
Discrete event simulation - future factory planning 5f.1 87
Facility layout prototyping 5f.2 122
Factory planning, future - discrete event simulation 5f.1 124
Feasibility study for new technology investment 5b.1 122
Flow and heat transfer, assessment of 9b.2 70
Future state mapping 3.2 286
High temperature alloys, options for machining with 6d.4 41
Identify potential for automation 6a.2 184
Incubation options, business 5e.1 140
Informatics roadmap, develop an 7c.1 113
Intelligent tooling and fixturing 7b.3 231
Joining complex geometrical features, options for 6d.3 223
Laser cleaning, texturing, micromachining - 182
machine trials 6c.1 164
Layout prototyping, facility 124
5f.2
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13. Index

13. Index

13a. Index of value accelerators - alphabetical

Lean culture, productivity improvement - embedding a 8.1 Page
Machine health optimisation 7a.1 247
Machine trials 6c.1 204
Manufacturing process, optimisation of 5c.2 164
Mapping, future state 3.2 84
Market case, validate the 5a.1 41
Measurement systems downselection 7d.1 60
Multi-skilling on key skills, embedding 8.4 236
NDT methods, independent advice on optimal 7d.2 258
Net shape equipment and process, demonstrate 6c.2 239
Net shape manufacture, feasibility study for 6b.2 168
Net shape, design for - capability demonstration 6c.3 151
Net shape, design for - skill transfer 9a.5 170
Offline programming, robot, as a feasibility study tool 5b.3 277
Parametric design 9a.3 76
Post processing additive layer parts, options for 6d.5 272
Powder characterisation analysis 6e.1 187
Powder handling systems - potential improvements 6a.3 192
Powder supply chain options, assessment of 6e.2 143
Practical problem solving tools, embedding use of 8.2 194
Prediction of weld quality 6b.4 250
157
13. Index
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13. Index

13a. Index of value accelerators - alphabetical

Problem solution generation, feasibility study 6b.3 Page
Process design, virtual proving of 5d.3 153
Production process with virtual reality, optimise 5d.2 106
Productivity improvement - embedding a lean culture 102
Prototype, optimising your 8.1 247
Prototyping and testing of advanced tools and fixtures 9c.1 294
Rapid metal deposition - capability demonstration 6d.1 178
Reducing unplanned downtime 6e.3 196
Reverse engineering as a problem solving tool 7a.2 207
Risk identification and management 9b.1 284
Roadmap, develop an informatics 4.2 51
Roadmap, developing a technology 7c.1 231
Robot offline programming as a feasibility study tool 2.1 31
Simulation as an aid to business case sign off 5b.3 76
Simulation tools, discovering value from 10.3 305
Single minute exchange of dies, embedding 5c.4 93
Standard work, embedding effective use of 7b.1 217
Strategy, business 8.3 255
Stress points, reducing within component design 3.1 38
Technology roadmap, developing a 9b.3 288
Tool life optimisation, identify options for 2.1 31
7a.3 210

13. Index Page 322

13. Index

13a. Index of value accelerators - alphabetical

Tooling and fixturing, intelligent 7b.3 Page
Tools and fixtures, advanced, changeover reduction via 7b.2 223
Tools and fixtures, advanced, prototyping & testing of 6d.1 219
Vendor, key questions for your technology 5a.2 178
Virtual design review 9a.4 63
Virtual engineering as a problem solving tool 5d.1 274
Virtual proving of process design 5d.3 101
Virtual reality, optimise production process with 5d.2 106
Weld quality, prediction of 6b.4 102
Weldability studies for new material combinations 6d.2 157
180

13. Index Page 323

13. Index

13b. Index of value accelerators - chapter order

Chapter order 2.1 Page
3.1 31
Developing a technology roadmap 3.2 38
Business strategy 4.1 41
Future state mapping 4.2 48
Change management 5a.1 51
Risk identification and management 5a.2 60
Validate the market case 5b.1 63
Key questions for your technology vendor 70
Feasibility study for new technology investment 5b.2 73
Adaptive, fast make, lightweight fixtures - 76
feasibility study 5b.3 82
Robot offline programming as a feasibility study tool 5c.1 84
Cost modelling 5c.2 87
Optimisation of manufacturing process 5c.3 93
Discrete event simulation 5c.4 101
Discovering value from simulation tools 5d.1 102
Virtual engineering as a problem solving tool 5d.2 106
Optimise production process with virtual reality 5d.3 113
Virtual proving of process design 5e.1 116
Business incubation options 5e.2 122
Minimise risk of inserting additive technology 5f.1
Discrete event simulation - future factory planning Page 324

13. Index

13. Index

13b. Index of value accelerators - chapter order

Facility layout prototyping 5f.2 Page
Discovery - identify potential for improvements 6a.1 124
Identify potential for automation 6a.2 138
Powder handling systems - potential improvements 6a.3 140
Feasibility study for additive manufacturing 6b.1 143
Feasibility study for net shape manufacture 6b.2 149
Feasibility study - problem solution generation 6b.3 151
Prediction of weld quality 6b.4 153
Machine trials 6c.1 157
Demonstrate net shape equipment and process 6c.2 164
Design for net shape - capability demonstration 6c.3 168
Design for additive manufacturing - 170
capability demonstration 6c.4 172
Prototyping and testing of advanced tools and fixtures 178
‘Weldability’studies for new material combinations 6d.1 180
Options for joining complex geometrical features 6d.2 182
Options for machining with high temperature alloys 6d.3 184
Options for post processing additive layer parts 6d.4 187
Powder characterisation analysis 6d.5 192
Assessment of powder supply chain options 6e.1 194
Rapid metal deposition - capability demonstration 6e.2 196
Machine health optimisation 6e.3 204
7a.1
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13. Index

13. Index

13b. Index of value accelerators - chapter order

Reducing unplanned downtime 7a.2 Page
Identify options for tool life optimisation 7a.3 207
Embedding single minute exchange of dies 7b.1 210
Changeover reduction via ATF 7b.2 217
Intelligent tooling and fixturing 7b.3 219
Develop an informatics roadmap 7c.1 223
Measurement systems downselection 7d.1 231
Independent advice on optimal NDT methods 7d.2 236
Productivity improvement - embedding a lean culture 8.1 239
Embedding use of practical problem solving tools 8.2 247
Embedding effective use of standard work 8.3 250
Embedding multi-skilling on key skills 8.4 255
Design for manufacture 9a.1 258
Design for cost reduction 9a.2 267
Parametric design 9a.3 270
Virtual design review 9a.4 272
Design for net shape - skill transfer 9a.5 274
Design for additive manufacture - skill transfer 9a.6 277
Reverse Engineering as a problem solving tool 9b.1 279
Assessment of flow and heat transfer 9b.2 284
Reducing stress points within component design 9b.3 286
288
13. Index
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13. Index

13b. Index of value accelerators - chapter order

Optimising your prototype Page
Building a robust business case 9c.1 294
Developing a business case for automation 10.1 300
Simulation as an aid to business case sign off 10.2 302
10.3 305

13. Index Page 327

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