Presentation to the South West Manufacturing Advisory Service Ian - PowerPoint PPT Presentation

Presentation to the South West Manufacturing Advisory Service Ian Stock 3Spheres UK Insight 01823 673245 Planning Research ian@3spheres.org.uk www.3spheres.org.uk SW MAS, 11/2009 3Spheres UK 1

SW MAS Strategic Objectives “The trusted provider of advice and hands -on support for manufacturers aiming to achieve sustainable success.” Set up to help smaller businesses improve productivity, reduce waste and compete more effectively, We aim to achieve the following results for manufacturing businesses who have not used World Class manufacturing techniques: • Improve staff productivity by 25% • Increase stock turnover by 30% • Improve equipment productivity by 25% • Reduce scrap and defects by 50% • Improve on-time delivery by 10% We aim to improve the confidence and sustainability of all manufacturing businesses in the region by helping them to improve their own long-term performance and by helping them migrate from low value, labour intensive businesses to become high value-added, knowledge and technology based businesses. SW MAS, 11/2009 3Spheres UK 2

UK Manufacturing Industry Employs 3 million people in 150,000 enterprises 10% of national 12% of national Gross output (GDP) Value Added (GVA) Accounts for the majority of UK exports goods SW MAS, 11/2009 3Spheres UK 3

Manufacturing output (£billion) by sector 70 Food & Drink Chemicals & man-made fibres Motor vehicles & trailers 60 Machinery & Equipment Printing & repro 50 Metal products Coke, oil prods & nuclear fuel Other Transport Equipment 40 Rubber & Plastics Base metals Furniture and Mnfs NES 30 Non-metal mineral products Electrical Machinery 20 Precision Instruments Textiles, clothing & leather goods Pulp, paper & products 10 Radio, TV & Comms equipment Tobacco Wood & products 0 TO GVA SW MAS, 11/2009 3Spheres UK 4

Manufacturing Output (TO) by Region 2% 5% 5% 10% 14% South West 7% 10% 12% 8% 10% 7% 10% North East North West Yorks & Humberside East Midlands West Midlands East England London South East South West Scotland Wales N Ireland SW MAS, 11/2009 3Spheres UK 5

Regional Manufacturing Productivity Wales 25.9 North East 28.8 W Mids 29.5 North West 30.0 S West 33.1 E Mids 33.4 34.9 E England 34.9 Scotland 35.6 N Ireland 36.5 S East 37.0 Yorks & Humber 40.8 London 0 10 20 30 40 50 SW MAS, 11/2009 3Spheres UK 6

Lean Sigma approach Lean Sigma involves looking at: • Processes – the way things get done and reducing levels of waste • People – knowledge of those working in the process and their behaviours • Customers – what they value in, and benefit from, the product or service. The „Voice of the Customer‟ (VOC) is where 3Spheres UK can help and feed into overall Lean Improvement Programmes. SW MAS, 11/2009 3Spheres UK 7

Importance of VOC • The customer need – the benefits – reflect how the customer uses the product. • Help an organisation decide what products and services to offer • Identify critical features and specifications for the products • Help decide where to focus improvement efforts • Give a baseline measure of customer satisfaction against which to measure future improvements • Identify key drivers of customer satisfaction SW MAS, 11/2009 3Spheres UK 8

Voice of the Customer Plan What do you want to know about Who is the customer? your customer? Questions include: • ____________________________ • What is important to you? • ____________________________ • How do we perform on those important • ____________________________ aspects? • What does quality mean? • What is a defect? Sources: • How do we compare to competitors? • Reactive • Likes and Dislikes? • Complaints & Helpline calls • Claims / Product returns / defects Results: • Proactive • _______________________________ • Surveys and interviews • _______________________________ • Observations • _______________________________ • Sales calls • Benchmarking SW MAS, 11/2009 3Spheres UK 9

Kano Model Delighters More is Better Must be SW MAS, 11/2009 3Spheres UK 10

Case Studies How the services 3Spheres UK offers have contributed to business improvement • Process Improvement • Customer Satisfaction • Strategic Marketing Planning SW MAS, 11/2009 3Spheres UK 11

Process Improvement - UKHO • Potential efficiency gains and the benefits to the organisation had been identified by using a different printing technology • The quality issue needed to be resolved – customer acceptability of „new‟ product • A proactive assessment method was used • Developmental improvement process to satisfy customers • Measurable value of the research : Cost vs Benefits SW MAS, 11/2009 3Spheres UK 12

Customer Satisfaction • The importance of customer satisfaction. • A recent study for a packaging materials manufacture • The issues prompting the study • The information required • A CS study often points to step changes in improvement rather than a sea changes. SW MAS, 11/2009 3Spheres UK 13

Factors of importance to customers 1. Price competitive 4.8 2. Commercial flexibility 4.7 Key 3. OTIF delivery 4.6 primary 4. Overall value for money 4.6 issues 5. Lead time 4.5 6. Hygiene accreditation 4.4 7. Reliable consistent response 4.3 8. Sales team support 4.2 Important 9. Line efficient product 3.9 secondary 10. Innovative product solutions 3.9 issues 11. Palletisation of products 3.9 12. Order admin 3.9 13. Security of supply 3.4 Other 14. Access senior management 3.2 secondary 15. Print capability 3 issues 16. Level of investment 3 17. 1-stop shop facility 2.5 Minor issue 0 1 2 3 4 5 Average importance rating Critical (5) Very important (4) Quite - not important (1-3) SW MAS, 11/2009 3Spheres UK 14

Performance on those factors 1. Price com petitive 2. Comm ercial flexibility 3. OTIF delivery 4. Overall value for m oney 5. Lead tim e Primary 6. Hygiene accreditation 7. Reliable consistent response 2ndary 8. Sales team support 9. Line efficient product 10. Innovative product solutions 11. Palletisation of products 12. Order adm in 13. Security of supply 14. Access senior m anagem ent 15. Print capability 2ndary 16. Level of investment Minor issue 17. 1-stop shop facility 0 1 2 3 4 5 6 7 8 9 10 Average performance ratings Major accounts Small/potential SW MAS, 11/2009 3Spheres UK 15

Marketing Plan – POS equipment • Business had grown, including exports, but market and customer changes. • What direction should we go in? • What are the growth sectors? • What are the customer requirements? • What marketing activities do we undertake to reach the customers? SW MAS, 11/2009 3Spheres UK 16

Modular approach to the plan 1. Inside view of the business – philosophy, objectives, capabilities and hopes, barriers and issues. 2. Research – desk and field looking at markets, customers and competitors. 3. „Mind the gap‟ and SWOT analysis 4. Plan with objectives, strategies and activities SW MAS, 11/2009 3Spheres UK 17

3Spheres UK • Marketing research – desk research and analysis, help to DIY, complete project design and execution • Strategic marketing planning – health check review to full planning project • Insight by bringing customer and market data together to identify new opportunities SW MAS, 11/2009 3Spheres UK 18

Thank You Ian Stock 3Spheres UK Insight 01823 673245 Planning Research ian@3spheres.org.uk www.3spheres.org.uk SW MAS, 11/2009 3Spheres UK 19