Management School Welcome to The Agility & Supply Chain Centre at The University of Liverpool This presentation aims to show you how we assist small companies.

Management School

Welcome to The Agility & Supply Chain Centre at The University of Liverpool

This presentation aims to show you how we assist small companies to grow. The presentation is structured thus:

(1) Introduction – what we do and how we do it

(2) Example of agility applied – Richardson’s Healthcare

(3) Example intervention tools (operations)

(4) Case studies in operations interventions

(5) PART 2. Strategic Marketing and product development

(6) Example intervention tools (strategic marketing)

(7) How to contact us

Agility & Supply Chain Centre Remit

With Objective One funding, the focus initially lay with developing a framework for agility implementation

Over 80’s SME’s have been assisted to grow their business using agility tools

The centre has also been involved in disseminating best practice to SME’s

The centre is nationally recognised for it’s KTP programmes with industry

Reduce Operating

Costs

Reduce Operating

Costs

Create New

Markets

Create New

Markets

Increase Capacity

Increase Capacity

The Agility Centre was founded in the year 2000. The Centre

builds on the group’s expertise in agile and responsive manufacturing.

Expertise in supply chain and logistics have been added over the years

The logic of the stepwise approach

Robust Responsive

Proactive

Once operations are efficient, the remit is then to seek new opportunities for growth

FOCUSImprove production

capabilities

FOCUSImprove marketing

capabilities

First priority is to reduce operating costsand improve efficiencies

Phase 1

Phase 2

Initial assessment to implementation

Company Awareness

of Agility

Company Awareness

of Agility

MonitorReview &

Continuously Improve

MonitorReview &

Continuously Improve

ImplementationAgility Tools &

Techniques

ImplementationAgility Tools &

Techniques

Company Review &

Assessment

Company Review &

Assessment

AwarenessAwarenessof agilityof agility

BEA auditBEA auditand reportand report

Mini and Mini and in-depth projectsin-depth projects

Potential DTIPotential DTIsupport via KTP’ssupport via KTP’s

Level of interventionLevel of intervention

The BEA audit

IDENTIFICATION Problem Definition

Initial examination of causes and effects that can make the firm vulnerable

CLASSIFICATION

ETI Sections

MEASUREMENT

Quantifying Factors

PRIORITISATION

Prioritising Factors

Causes and effects classified into 4 main pillars and factors which are then assessed

Factors quantified based onmagnitude, Control. Level andimpacts in relation to threats and opportunities presented

Quantified factors prioritisedTo highlight factors having aMajor impact on the firm

Example BEA tool

Example: Richardson’s Healthcare

Richardson’s Healthcare undertook a BEA audit to understand issues to be addressed. Following the audit, a number of operations issues were prioritised for improvement

The company was impressed with the audit results and so decided to go ahead with a two-year KTP Programme

Within the first 6 months an improvement in productivity of 46% was achieved (see below)

The Associate won a “Business Leader of Tomorrow” award from the DTI

Summary operations results:

Improved productivity by 46%+Increase in capacity by 50%Reduction in lead-time by 14 daysReduction in material wastage by 11%+Reduction of rejects and returns by 8%+Reduction in absenteeism by 18%

Example intervention tools: 7 Wastes

Example intervention tools: The 5S method

Sort

Set in Order

Shine

Standardise

Sustain

Example intervention tools: Mass Customisation

Feature Examples:Feature Examples:

1.1. Wavey SlideWavey Slide2.2. Straight SlideStraight Slide3.3. PlatformPlatform4.4. ‘‘A’ Frame GymA’ Frame Gym5.5. ‘‘A’ Frame CompactsA’ Frame Compacts6.6. GliderGlider7.7. Basket Ball HoopsBasket Ball Hoops

Findings. Main reason for low scores largely due to fact that this family range uses Findings. Main reason for low scores largely due to fact that this family range uses 56 tube sizes (diameters, wall thicknesses and cut lengths) and material types 56 tube sizes (diameters, wall thicknesses and cut lengths) and material types

Feature1 Feature2 Feature3 Feature4 Feature5 Feature7 Feature8 Feature9 Feature10 Feature11 Feature12

n 20 15 16 11 3 8 4 11 4 2 7Rn 6.50 9.33 10.00 5.45 3.33 3.75 0.00 0.91 0.00 10.00 0.00Rv 5.59 7.08 6.41 3.97 36.06 11.11 23.54 17.94 0.56 3.02 0.54Ra 6.05 8.21 8.21 4.71 19.70 7.43 11.77 9.42 0.28 6.51 0.27

Rn = ‘feature similarity coefficient’ Rn = ‘feature similarity coefficient’ Rc = ‘feature Rc = ‘feature costcost similarity similarity Rv = ‘product Rv = ‘product volumevolume similarity coefficient’ similarity coefficient’

Example intervention tools: Skills Matrix

The ‘Complexity of Task’ criteria has three levels e.g.The ‘Complexity of Task’ criteria has three levels e.g.

The competency of the person is determined by three criteria:The competency of the person is determined by three criteria:

LOW complexityLOW complexity HIGH complexityHIGH complexityMEDIUM complexityMEDIUM complexity

NoviceNovice ExpertExpertCompetentCompetent

Example: John’s CNC Machining SkillExample: John’s CNC Machining Skill

Job Complexity X Skill Rating =Job Complexity X Skill Rating =

Medium Complexity (2) X Competent (2) = 4Medium Complexity (2) X Competent (2) = 4

Workforce Utilisation

Skills Matrix

Knowledge Base

0

10

20

30

40

50

60

70

Pro

du

cti

on

Sk

ills

Ra

tin

g

Workshop Activities

Production Knowledge Base

0

5

10

15

20

25

30

35

40

45

Know

ledg

e Sco

re

Workshop Activities

Knowledge Base Utilisation

0

20

40

60

80

100

120

140Sk

ills

Com

pete

ncy

Rat

ing

Employee I.D.

Employees Competency Rating

Unskilled

Semi-Skilled

Skilled

Series1

High Medium Low

Scoring 4 1 6 6 4 6 4 6 1

Job Complexity M L H H M H M H LEmployees Name A1 A2 A3 A4 A5 A6 A7 A8 A9

Filters

Sem

pe

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rod

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Dat

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Ac

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Lo

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Ha

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Tap

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ID N

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QA

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Pac

kag

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1 Ian Morgan 2 3 6 6 4 6 4 6 32 Paul Mc Dermott 2 3 6 4 4 4 4 6 33 Michael Perry 2 34 Kevin Groom 2 35 Mark Clark 2 36 Alex McLoughlin 2 3 6 4 6 4 4 37 Jimmy Seddon 2 38 Mark Thomas 2 39 Stephen Atkinson 2 3

10 Frank Parle11 Brian MeDermott 2 312 Andrew Martin 2 313 Alan Dunbar 2 314 John Logan

Complexity of TaskH=3M=2L=1

IndividualExpert=2Competent=1Novice=0

Complexity of TaskH=3M=2L=1

IndividualExpert=2Competent=1Novice=0

Complexity of TaskH=3M=2L=1

IndividualExpert=2Competent=1Novice=0

High Medium Low

Job Complexity M L H H M H M H LEmployees Name A1 A2 A3 A4 A5 A6 A7 A8 A9

Filters

Se

mp

er P

rod

uct

s L

td

Dat

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mp

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Ac

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Fil

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Dri

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QA

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ab

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.D.

Pa

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1 Ian Morgan 2 3 6 6 4 6 4 6 32 Paul Mc Dermott 2 3 6 4 4 4 4 6 33 Michael Perry 4 Kevin Groom5 Mark Clark 2 36 Alex McLoughlin7 Jimmy Seddon8 Mark Thomas9 Stephen Atkinson

10 Frank Parle11 Brian MeDermott12 Andrew Martin13 Alan Dunbar14 John Logan

Complexity of TaskH=3M=2L=1

IndividualExpert=2Competent=1Novice=0

Complexity of TaskH=3M=2L=1

IndividualExpert=2Competent=1Novice=0

Complexity of TaskH=3M=2L=1

IndividualExpert=2Competent=1Novice=0

Example intervention tools: Process Mapping

To remain competitive in today’s To remain competitive in today’s environment, companies need to environment, companies need to be able to guarantee that the be able to guarantee that the products and services they deliver products and services they deliver are of high quality. The most are of high quality. The most widely used and most respected widely used and most respected international standard of quality is international standard of quality is the ISO 9000.the ISO 9000.

Process Mapping is the preferred Process Mapping is the preferred method for documenting method for documenting procedures and work instructions procedures and work instructions because flowcharts are easy and because flowcharts are easy and fast to create. Once created, a fast to create. Once created, a flowchart provides a clear flowchart provides a clear roadmap for employees to roadmap for employees to understand as well as satisfy the understand as well as satisfy the quality goals of the organisation.quality goals of the organisation.

EnquiryEnquiry OrderOrder DesignDesign ManufactureManufacture DispatchDispatchPurchasingPurchasing

Management & Operation Procedures

PlanningPlanning

Process mapping as a necessary first-step

The ActivityThe Activity

The ProcessThe Process

The AdditionsThe Additions

The The Assessment Assessment & Refinement& Refinement

Visibility in terms of:Management Control

Process Flow

Information Flow

Management Procedures

Roles & Responsibilities

Non-Value Added Activities

This leads on to Value Stream Mapping

Timber Supplier.

Crown Timber

Production Control

ConnectorPlate Supplier

Gang Nail

ORDERS

ORDERS

550 - 600 trusses/wk

Redframe Customers

ORDERS49 -56 days AV.

out

1-2 * wkly 1*2wks

672 Pcs I2

Raw MaterialSorting

2

Sawing

3

Press

2

R & B

1

Shipping

2-3*wks

DAILYSHIPPING

SCHEDULE

Setup: 0.5 Mins

C/T: 30 Mins

Uptime: 40%

Scrap: 2%

Total Cycle Time: 0.5 mins *Feature no * Quantity

C/T: 0.5 Mins/Unit

Uptime: 40%

27,600 Secs

C/T: 3.5 Mins

Initial Setup 45 Mins

Uptime: 10%

27,600 Secs

C/O -

C/T 25 Mins

Uptime - 80%

27,600 Secs

30 Mins

120 Mins

0.5 Mins / Unit 47.5 Mins

12 Days

12 days2 Days

2 Days

DAILY PRIORITIES

250

27,600 Secs

Setup: 0.5 mins(2 setups 90o & 45o ?)

35 units 16 (2')20 (1.5'

LT = 22015 MIns

VA =252.5 Mins

245 Mins 50 Mins

25 Mins

150 Mins for an order of 50 TrussUnits

237.5 (61.5) Mins to press a batchof 5 trusses.( Sorted by feature)

1

1 Day

16 units =100Mins20 units =114Mins

Value Added Time

& Production Lead Time

Process Characteristics

Cycle TimeChange Over Time

UptimeDowntimeScrap RateQuantities

Inventory

Open Access

Secured Secured

For ultimate visibility/control there is E-QMS

Local PC

Local PC

Local PC

Process Maps

Process Maps

Public Drive on the server Public Drive on the server

e.g. E: Quality/QMS e.g. E: Quality/QMS Web version HTML Web version HTML PDF versions and PDF versions and uncontrollable docs uncontrollable docs

Web version HTML PDF versions and uncontrollable docs

docsSecured part of the server Secured part of the server

e.g. user Iain e.g. user Iain C:Quality/QMS C:Quality/QMS Master Copy Master Copy Visio Version including Visio Version including Master PDFs Documents Master PDFs Documents and Templatesand Templates

Archive

Html Process Html Process maps/QMSmaps/QMS

QualityQualityadministratoradministrator

Growing the business – PART TWO

Robust Responsive

Proactive

Seek new opportunitiesfor growth

FOCUSImprove production

capabilities

FOCUSImprove marketing

capabilities

The first series of intervention tasks focus on reducing operating costs and improve efficiencies. This is “phase one”

Phase two involves growing the business directly through strategic marketing and new product development

Phase onePhase one

Phase twoPhase two

Example intervention: new product development

Hot WaterHot Water

Cold WaterCold Water

Saved cold waterSaved cold water

Thermal valveThermal valve

Saved cold waterSaved cold water

Header tankHeader tank

Hot waterHot watertanktank

Hot waterHot water

Cold mainsCold mains

Example intervention: sales campaign

Marketing orientation audit

Preliminary marketing coaching

Analysis of the product portfolio

Customer analysis

Develop marketing materials

Campaign analysis

Mapping the competitive landscape

Design and deliver "pitch"

AgileMarketing

22

11

33

4455

66

77

88

Example intervention: develop/refining brand image

Agility and Supply Chain Centre contact details

We hope you enjoyed the presentation.

Our contact details are as follows:-

AGILITY & SUPPLY CHAIN CENTREJenny Poolton (Marketing Manager)Email: [email protected]

Telephone 0151 795 3641/3642Fax: 0151 795 3640www.agilitycentre.com

University of Liverpool Management SchoolRoom FE13, The Chatham Building,PO Box 147, Liverpool L69 7ZH

Reduce Operating

Costs

Reduce Operating

Costs

Create New

Markets

Create New

Markets

Increase Capacity

Increase Capacity