dennis 24th may1

How to Increase Your Profit Through Product Design24th May 2006: 

How to Increase Your Profit Through Product Design 24th May 2006 Dennis McKeag Professor of Product Development University of Ulster

Wealth Creation: 

Wealth Creation To create wealth we must have something that others want to buy. It has been said by one Japanese commentator that the reason for the trade deficit between Britain and Japan is that the British do not produce sufficient of what Japanese customers want to buy, whilst the reverse is the case for British customers of Japanese produce.

Mike BeasleyMD of Jaguar: 

Mike Beasley MD of Jaguar “If the UK is to be serious about wealth creation it needs to be serious about manufacturing. Making sandwiches for each other won’t do it.”

Investment Creates Wealth, but What Do We Invest in? : 

Investment Creates Wealth, but What Do We Invest in? If British manufacturing industry has been devastated, why haven't the manufacturing industries in Italy, France and Germany suffered the same fate? Reason is investment!

N.I. Manufacturing Trend: 

N.I. Manufacturing Trend Over the past five years the manufacturing sector share of employment has fallen from 17.5% to 13.5%. At this rate by 2020 it will be a case of last one out switch the light off. In this scenario how will we create our wealth? What sort of society will we live in?

Why the SME Sector Is Important to N.I. Wealth Creation: 

Why the SME Sector Is Important to N.I. Wealth Creation 90% of businesses employ fewer than 12 people 60% employ fewer than 5 people 3% employ more than 100 people

Case Studies: 

Case Studies Over the next period we will consider some local case studies. The purpose is threefold, firstly to show that local companies are taking steps to improve their competitive position, to outline some of the key approaches taken to improve competitiveness, and to help draw up some generic pointers to the way ahead.

Slide8: 

Personal experience indicates that local SME’s with a turnover of £2.5m per annum generally have about 400 suppliers on their books. This helps create an administration overhead out of proportion to direct costs. Again personal experience and research indicates the following relationship between direct and overhead costs for UK and Japanese companies: Direct Overhead UK 1 1.4 Japan 1 0.4

Slide9: 

Japanese companies are no more productive compared to their UK counterparts. They gain their competitive advantage through superior management capability. This means : Keeping systems simple Having a well trained direct workforce Ensuring supplies are delivered to quality, to specification and on time Becoming a niche market, core business specialist supplier

Benefits of Being a Specialist Supplier: 

Benefits of Being a Specialist Supplier Robust business due to risk being spread over many customers Specialist skills Focussed investment Recognised in the business Cost-benefit of core business and relatively high volumes

NC Agriculture Precinct Sweeper: 

NC Agriculture Precinct Sweeper

This is the only road going vehicle totally designed and built in Ireland: 

This is the only road going vehicle totally designed and built in Ireland ITEM Engine Transmission and pumps Motors and ancillary items Axles & Steering Vacuum Mouldings Rotational Mouldings SUPPLIER VM Italy Linde, England Danfoss, England FPW England Donite, Lisburn Harlequin, Moira

Slide13: 

ITEM Switches Lights Gauges Looms SUPPLIER Britax, Lurgan Rubbolite, Scotland VDO, England Parkinson Harness technology Now Parkinson Harness Technology have agreed to supply the looms complete with switches, lights and gauges

Important Criterion Are:: 

Important Criterion Are: The supplier should have a design and manufacture capability The supplier will engage in design activity at the concept stage (concurrent Engineering) As far as is possible the supplier will make use of standard components Don’t be afraid to move into design and manufacture of hi-tec products, that is what customers want

Clarepak Ltd, Annacotty, Co. Limerick: 

Clarepak Ltd, Annacotty, Co. Limerick In 2002 Clarepak manufactured PET bottles at the rate of about 200m per year. The products are price sensitive. To win orders the company have focussed on working with local customers to design unique products, manufacture quality products, and provide a first class service. This year Clarepak will sell 350m bottles

Slide16: 

Clarepak now schedule production to supply customers with PET bottles on a JIT Lite basis. Advantages to customers are: Products arrive fresh and ready for use Savings in goods inwards storage Flexible response means that in the event of breakdown at the customer plant, the maximum volume in transit is one truckload. This is returned to base and production changeover advanced to the next product Re-supply will commence on demand

Keylite are a new Cookstown company manufacturing a complete range of roof windows: 

Keylite are a new Cookstown company manufacturing a complete range of roof windows The company started from nothing in 2001. Expansion is so rapid that they recently moved into their third set of new premises

Slide19: 

Key components/materials in a roof window are: Timber Glass Aluminium Lead Pressed steel parts Extruded rubber seals Consumables

Slide20: 

From the onset the windows and components were designed using solid modelling software. Suppliers were involved in conceptual and detail design activity. Based on supplier advice, DFMA was incorporated at the design stage. Jig, tool and fixture design followed from component drawings. A BOM was created and tied to it were component specification, supplier and product code.

Slide21: 

Lead times are agreed with suppliers as are ramp up times for increasing volumes. Materials, components and consumables are direct line feed. Weekly cycle counts are conducted and actual material usage compared with theoretical and variations investigated Lean manufacture techniques are implemented on the shop floor Growth is accommodated through systematic elimination of bottlenecks as they appear

RFD TCS Programme: 

RFD TCS Programme The Estonia and Zebrugge maritime disasters made government and industry aware of shortcomings of safety at sea, particularly with regard to lifesaving systems. Existing systems were slow to deploy, and were at the mercy of the elements, generally at a time when they were most needed.

Slide23: 

The TCS programme employed three associates. One worked mainly on leisure rafts, and two worked mainly on the innovative Marin-Ark lifesaving system. This system won the UK National Innovation Award for large companies, and was the first of the Millennium products launched on television by the Prime Minister Tony Blair. Currently 80% of RFD production is as a result of the TCS programme

Rapid International KTP Programme: 

Rapid International KTP Programme Rapid manufacture concrete batching plant and concrete mixers. They have about 10% of the UK market. To grow the company needed to develop existing products and generate new products that would get them into the export market.

Slide25: 

Static concrete batching plant, the type traditionally manufactured by Rapid, requires a site survey, planning permission, foundations, structural steel work, components manufactured at the factory to be transported to the site and assembled and commissioned. The restriction is that transport any significant distance from base quickly eats into profit margins. One solution was to design a concrete batching plant for specialist markets that could be transported in a 40 foot container. The world has opened up as a market for Rapid Concrete Batching Plant.

Rapid Jetwash System: 

Rapid Jetwash System Rapid Jetwash System Rapid ensure that your mixer is thoroughly cleaned thanks to this high pressured system 4 minute Rapid Washout Cycle saving you time and money Low water consumption Single man operation thanks to its fully automated features Capable of washing up to 4 mixers A totally self-contained system, saving you space Patent pending

Slide27: 

Rapid do design, manufacture and export pan and planetary mixers with an individual capacity up to 3 cubic meters. However competitor products are becoming more price competitive, and adding features that give a performance advantage in terms of batch turn around time. Rapid have responded by applying the principles of DFMA to their products to reduce cost, increase quality and durability, and concurrently improved design to give the fastest batch turn around time on the market.

Boomer Industries KTP Programme: 

Boomer Industries KTP Programme PVC PRODUCT RANGE Profiles Skirting Board Trims & Angles Pre-Hung Door Sets Specialised Bespoke Secondary Operations

Boomer Industries KTP Programme: 

Boomer Industries KTP Programme WRIGHTBUS LTD PROJECT Based on development of products Business opportunity new lean manufacturing system Development of a strategy ‘value added services’ Triumphant win-win partnership In 2 years risen to 1st in UK market

All of the Case Studies Examined Have Benefited From Technology Transfer: 

All of the Case Studies Examined Have Benefited From Technology Transfer Technology transfer works by the transfer of appropriate technology from Universities to Industry and The transfer of know-how and understanding from industry to universities

Slide31: 

Industrial know-how solves problems Universities retrospectively attempt to know-why Working with a number of companies means universities gain knowledge, understanding, know-why, know-how in relation to best practice and can diffuse it throughout industry

We Need to Focus Attention on Products/markets Where:: 

We Need to Focus Attention on Products/markets Where: There is a reliance on scientific and engineering research There is high added value People work smarter not harder Skill factor is high Ingenuity and creativity are required Specialist processes are used Variety is wide Batch sizes are low

To Be Successful Requires:: 

To Be Successful Requires: Originality in ideas Creativity in design Ingenuity in engineering Flexibility in manufacture Opportunist in marketing Modernism in management Continuous improvement in all aspects of company business

To Be Innovative Requires Ideas, This Is the Most Difficult Bit. : 

To Be Innovative Requires Ideas, This Is the Most Difficult Bit. Almost all new ideas come from existing industry. What is needed is support to enable technically feasible and commercially viable ideas become reality.

As Far As Our Local Economy Is Concerned We Should Invest in Three Key Areas: : 

As Far As Our Local Economy Is Concerned We Should Invest in Three Key Areas: New product innovation Cost reduction Supply chain (cluster) development

The End: 

The End