Latest News from IOMNet.org.uk

Dyson calls for greater innovation in manufacturing

Wed, 10 Mar 2010 11:23:00 GMT

More innovative approaches are needed to production in the UK''s hi-tech industry in order to make the country a world leader in its field, an expert declares.

In a review of the UK''s manufacturing sector requested by Conservative Party leader David Cameron, engineer and entrepreneur James Dyson states a new economic model is required to fund ways of improving manufacturing processes.

The tycoon explains more needs to be done to encourage young people to study science and engineering, raise the status of such subjects through competitions and other ventures, alter the way in which knowledge is transferred in the UK and provide better funding for start-ups and hi-tech businesses.

His Ingenious Britain study was welcomed by shadow business secretary Ken Clarke, who stated that the party will "undoubtedly follow this broad agenda" if it comes to power at this year''s general election.

Operations management professionals may also be interested in recent government figures revealing that spending on research and development by the top 1,000 companies in the UK topped £26 billion in 2008, 9.2 per cent higher than the previous year.

Manufacturing "critical" for economic growth

Tue, 09 Mar 2010 13:13:00 GMT

The manufacturing sector in Britain is "critical" to ensuring that the economy recovers from the downturn, one expert has declared.

According to head of programmes at the Manufacturing Institute Adam Buckley, the latest purchasing managers'' index (PMI) is "encouraging" and highlights the important role played by production, "particularly in improving the balance of trade through export".

He praised government efforts to provide support to manufacturers and stated he hoped this approach would be continued by whichever party wins the forthcoming general election.

However, Mr Buckley also noted that firms in the construction and automotive sectors "are still struggling", something that may prompt those involved in operations management to seek new ways of improving manufacturing processes.

Foreign exports from Britain have been boosted by the relative weakness of sterling compared with other currencies and the most recently released PMI revealed that the UK''s manufacturing industry witnessed its strongest growth in 15 years this February.

Public sector news: £83m grant for low-cost homes

Mon, 08 Mar 2010 16:54:00 GMT

Continuous improvement in the public sector received a welcome boost today (March 8th) with £83 million in funding unlocked for low-cost homes.

According to housing minister John Healey, some 5,700 properties will be put back on the development track after being halted by the economic downturn.

The cash will enable families to benefit from the HomeBuy scheme and get on the property ladder, while housebuilders will be able to safeguard 1,700 jobs across construction sites, Mr Healey added.

Priority will be given to houses with cleaner and greener standards, meeting at least Level 3 of the sustainable homes code.

However, the supply chain through which such residences are created may not be able to get going again just yet.

Developers that received funding today (March 8th) said it could be up to a year before workers are back on site.

Mr Healey is also the Labour MP for Wentworth and previously worked as financial secretary to the Treasury.

Service sector ''sees stabilisation''

Fri, 05 Mar 2010 16:51:00 GMT

The service sector in the UK saw business volumes start to stabilise during the past three months.

A poll of 180 companies by the CBI showed that there was an improvement in the consumer services category - covering hotels, travel and leisure, bars and restaurants - where the balance for value of business rose to +10 per cent, its highest level since November 2007.

The CBI Service Sector Survey was carried out between January 27th and February 10th and discovered the business and professional services industries, such as legal, marketing and accountancy organisations, saw little change over the quarter.

Prices in consumer services rose during the period in question, largely due to the VAT hike at the start of the year, while profitability dipped slightly in the business and professional services sub-sector.

Ian McCafferty, chief economic adviser for the CBI, remarked: "Overall, these figures are consistent with our view that the economy is recovering slowly, but that we will have to wait a while before growth picks up."

Demand planning specialists may also be interested in the latest Nationwide Consumer Confidence Index, which indicated optimism among businesses increased by three points in January to 73.

Investment in manufacturing innovation grows

Thu, 04 Mar 2010 16:10:00 GMT

UK firms increased their investment in new ways of enhancing productivity, products and services by 9.2 per cent in 2008 compared with the previous year.

This is according to new figures from the government, which suggest that the country''s leading 1,000 businesses spent more than £26 billion in research and development (R&D) over the year.

Investment in innovation and continuous improvement exceeded average growth internationally of around seven per cent globally.

Britain''s R&D spending was driven by sectors such as banking, software and computer services, pharmaceuticals and biotechnology and aerospace and defence.

Science and Innovation Minister Lord Drayson pointed to initiatives such as the UK Innovation Investment Fund, R&D tax credits and reducing the rate of corporation tax on income from patents in 2013 as evidence of "the government''s commitment to support companies with high-growth potential".

A recent fact-finding mission was undertaken by Business Secretary Lord Mandelson to Germany in order to learn from the country''s public support for manufacturing and operations management practices.

Steps outlined to protect local frontline services

Wed, 03 Mar 2010 16:51:00 GMT

The government has published a list of ten steps for local authorities that are intended to assist them in protecting frontline services.

Outlined in a new report, the guidance takes tightening public finances into account and may be of particular interest to those involved in operations management.

Suggestions include cutting waste and duplication within organisations by sharing back office roles in areas such as IT and human resources, having a chief executive managing more than one body and learning from best practice.

Welcoming the steps, recommended by an expert taskforce, communities secretary John Denham stated: "Councils have some tough choices in the next few years as things become tighter. But that is no reason to lower their sights on service quality people rightly value."

He also warned councils that the public would not be tolerant of local authorities that failed to run through the ten stages before cutting frontline services.

Meanwhile, each local council with a responsibility for adult social care is being allocated around £20,000 to fund the update or development of its extra care housing plan in order to foster continuous improvement in services for older people.

Manufacturing sector ''seeing markers of recovery''

Tue, 02 Mar 2010 12:15:00 GMT

The "markers of recovery" are now in evidence within the UK''s manufacturing industry, an expert claims.

According to Barclays head of manufacturing, transport and logistics Graeme Allinson, the latest Purchasing Managers'' Index (PMI) is "a good start to 2010".

He pointed to particularly strong output and export levels as evidence that "manufacturers will be optimistically looking towards consistent positive growth this year".

Operations management professionals may also be interested in Mr Allinson''s comments that "unprecedented levels of uncertainty" within the wider economy will continue to impact upon the rate of recovery and government support is needed to ensure its future success.

The PMI, published by Markit and the CIPS, reveals that production activity continued to grow in February following a leap in January, with the index currently standing at 56.6, its highest level since October 1994.

With any figure above 50 representing growth, the industry is demonstrating signs that it is recovering from the global downturn and export orders in February rose to a peak not seen since January 1996.

EU scheme ''could save manufacturers large sums''

Mon, 01 Mar 2010 14:56:00 GMT

Manufacturers interested in operations management could make use of a new European Union (EU) scheme to reduce their import costs.

According to the Department for Business, Innovation and Skills (BIS), which is promoting the initiative, companies could save substantial sums through the EU Duty Suspensions & Tariff Quotas Scheme.

Under the system, eligible manufacturers can import materials required to make items that cannot be sourced within the EU from overseas duty-free.

"This scheme can help businesses save much-needed cash during these tough times, offering them the opportunity to grow and expand their company," trade, investment and small business minister Lord Davies said, urging companies to contact BIS to determine whether they are eligible.

Businesses based in the UK are currently saving an estimated €30 million (£27.2 million) annually through the scheme, a figure that is rising as awareness grows among manufacturers of the opportunities it represents.

Those involved in manufacturing management are advised to speak to the BIS Trade Policy Unit about duty-free importation of raw materials, components and semi-finished products unavailable within the EU.

Localised production ''could improve manufacturing processes''

Fri, 26 Feb 2010 11:21:00 GMT

Reducing ton mileage by localising production and distribution warehouses can help to improve manufacturing processes.

This is according to Alan Francis, transport spokesperson for the Green Party of England and Wales.

He said nowadays the process is centralised, leading to some products making needless trips up and down the country.

However, a common facility in each city or town would be useful in getting significant amounts of freight off the road and increasing efficiency.

"The government has put forward grants for the building of rail terminals for loading and unloading of containers, but this is pretty small scale. We need to do something on a far larger scale," Mr Francis stated.

His comments follow a recent IGD report showing that 124 million HGV miles have been removed from the nation''s transport network thanks to the Efficient Consumer Response UK Sustainable Distribution initiative.

This target was reached a year earlier than forecast.

Companies sign up for supply chain challenge

Thu, 25 Feb 2010 17:13:00 GMT

A supply chain competition called The Fresh Connection will involve companies such as Heinz and Kimberly Clark and is set to be a great training experience for those involved.

Logistics and supply chain consulting firm SCALA has set up the online initiative, which starts on April 12th and challenges teams of four to save a fictitious business from closure and instead put it on the path to success.

Seven rounds will take place across seven weeks and require each team to make and manage various decisions relating to operations management, procurement and sales.

It aims to provide useful learning strategies on the importance of the collaboration and integration of different disciplines to create effective and efficient supply chains.

SCALA managing director John Perry said this type of learning opportunity was particularly relevant in the current climate.

"The Fresh Connection is not only competitive, but becomes a fantastic training and development tool," he added.

Other companies to have signed up so far include Kraft Foods, which operates brands such as Oreo, Philadelphia and Maxwell House.

Public sector aims for continuous improvement with ''new housing strategy''

Wed, 24 Feb 2010 15:46:00 GMT

A new strategy launched today (February 24th) by the Department of Health will hopefully foster continuous improvement in the range of services provided for older people.

Each local authority with Adult Social Care responsibility is to be given around £20,000 for the update or development of its extra care housing plan, because "innovative" residences able to meet older peoples'' needs and aspirations are vital for the future of the care sector, the government believes.

"They are at the heart of the technological change that will define our ageing society, enable more people to live well and live independently in their own home for longer," adds care services minister Phil Hope.

He suggests councils act decisively and efficiently in order to supply a greater range of improved housing choices for older demographics.

The Department for Business, Innovation and Skills recently added more resources to the range currently available to carers in the UK and emphasised the benefits of continued learning in later life.

Continuous improvement in packaging sector ''welcomed''

Tue, 23 Feb 2010 09:54:00 GMT

Manufacturing management in the field of bioplastics is crucial for the sector to see the full benefits of innovation.

This is according to Peter Woodall, spokesperson for the Packaging and Films Association. He commented after the invention of a new sugar-based compostable plastic was announced last week, having been developed at Imperial College London by a team of scientists from the Engineering and Physical Sciences Research Council.

Although developments like this are potentially great for the sector, compliance with regulatory requirements and a full understanding of how they are fit for purpose is very important, he said.

"The objective is always to ensure the utmost resource efficiency," Mr Woodall explained. "What is important is that the whole life cycle of materials is taken into account."

He added that while new products are useful for the manufacturing industry, conventional plastics are already good at demonstrating environmental best practice and enabling consumers to reduce, reuse and recycle.

UK manufacturers advised to create growth through innovation

Mon, 22 Feb 2010 09:56:00 GMT

The UK''s manufacturing sector must adopt a more innovative approach to improving manufacturing processes if it is to achieve sustained growth, according to one industry expert.

David Raistrick, UK manufacturing leader for professional services firm Deloitte, said the sector had seen irreversible change over the past 15 years, with traditional industries such as steel and textiles no longer as important to the economy.

During that time, manufacturing''s share of the UK''s gross domestic product has fallen from 20 per cent to 13 per cent, but Mr Raistrick insisted the sector can regain its position.

In order to do that it must focus on improving manufacturing processes and on hi-tech industries which take advantage of the highly-skilled workforce available to companies with UK operations.

"These skills, together with an innovative approach and focus in these emerging areas, will help ensure a prosperous long-term future for British manufacturing," he added.

His views were expressed after a CBI report revealed 25 per cent of manufacturers expect to increase output over the next three months - a figure which prompted the body to state that the sector is showing signs of slowly recovering from the recession.

Further growth forecast for UK production

Fri, 19 Feb 2010 16:16:00 GMT

The UK''s manufacturing sector will experience further growth in production levels over the coming quarter, it has been predicted.

According to a new report from the Confederation of British Industry (CBI), businesses in the industry are at their most optimistic in nearly two years.

However, operations management and inventory control techniques will remain important as the CBI warns future prospects remain "muted" for UK manufacturing as the result of sluggish levels of demand.

A poll of 548 manufacturers showed that one-quarter (25 per cent) forecast an increase in output in the next three months, compared with 18 per cent predicting a fall, with many reporting a continuing improvement in export order books.

"Manufacturing production is slowly recovering as demand for UK-made goods overseas is improving, boosted by the relative weakness of sterling," CBI economic adviser Ian McCafferty commented.

In related news, the latest figures from the Society of Motor Manufacturers and Traders revealed a 64.8 per cent jump in the production of cars in the UK during January this year, with "modest growth" predicted for the sector this year.

Manufacturers ''more optimistic about 2010''

Thu, 18 Feb 2010 16:44:00 GMT

Many UK manufacturers are predicting that the outlook for 2010 is much brighter than that for 2009.

This is according to a Manufacturing Digital article, which predicts that this year will see conditions improve for the sector as the economy starts to recover from the recession.

Writing for the publication, Ian Armitage pointed to recent European data from Markit suggesting that production rose for five consecutive months to December.

The news source conducted its own research and found that manufacturing bosses are more optimistic than they were last year, particularly those operating in the green and renewable energy sectors.

Meanwhile, good operations management and a focus on sustainability means that firms are reducing their costs and their impact on the environment, while also becoming safer.

"The lack of available funds is still causing companies to look into reducing fixed costs and increasing productivity with the same or smaller staffs," Mr Armitage notes.

Employing demand planning policies and inventory control techniques can assist manufacturers looking at ways of generating continuous improvement within their business and taking advantage of improving economic conditions.

Public sector cutbacks ''will mean job losses''

Wed, 17 Feb 2010 17:16:00 GMT

Organisations in the public sector are being forced by the downturn to make substantial cutbacks, which are likely to lead to jobs being axed.

This is the conclusion of a new report by the Chartered Institute of Personnel and Development (CIPD) and KPMG, which concludes that redundancies could double over the current quarter.

Operations management courses and policies could assist bodies in identifying ways of reducing expenditure and staving off some job losses after the latest Labour Market Outlook survey of more than 500 employers predicted that the public sector is likely to bear the brunt of cuts.

Conducted by Ipsos Mori, the poll found that some private sector employers are reporting that they are starting to recover from the recession, but the public sector has slipped sharply from last quarter with the largest number of cuts predicted in public administration and defence.

KPMG head of public sector Alan Downey remarked: "Many public sector bodies have already started to feel the pain and are drawing up clear and radical plans to reduce costs."

Communities secretary John Denham declared recently that third sector organisations such as charities should play a key role in efforts by local authorities to improve the efficiency of their operations.

Toyota recall ''forces operations management review''

Tue, 16 Feb 2010 13:54:00 GMT

Japanese carmaker Toyota is believed to be considering axing 750 jobs at its Burnaston plant in Derbyshire and is being forced to overhaul its operations management procedures.

Around 30 per cent of all the company''s models sold in Britain are manufactured at the site and Tony Walker, the factory''s deputy managing director, told the Financial Times that the consequences of the recall of 180,000 vehicles in the UK on demand will be studied to determine whether or not production schedules need to be adjusted.

"We have to make ourselves cost effective and productive for the long term," he stated.

Concerns about faulty accelerator pedals have prompted the recalls and Toyota Motor Manufacturing UK is now looking at introducing further cuts at Burnaston as UK orders fall.

A worksharing scheme reducing hours and pay by ten per cent was implemented in 2009 and additional measures may now follow to ensure the plant''s future survival.

Toyota has reported that it currently has capacity to repair around 6,000 vehicles per day, with 206 centres around the UK opening for longer each day to complete the half-hour fixes.

HIIE unveils plans to enhance operations management

Mon, 15 Feb 2010 12:53:00 GMT

A series of new measures are being introduced by Highlands and Islands Enterprise (HIE) in Scotland in order to enhance its service delivery.

The agency is carrying out a reorganisation of its workforce and operations management in order to provide better support for the region''s community and economic development.

It is exploring ways of reducing staff numbers through a voluntary severance scheme and payments costs in order to "target greater resources towards a number of priority areas of work" and improve effectiveness and efficiency.

HIE chairman William Roe explained that the transfer last year of responsibility for business start-ups and firms operating in local markets to councils through the Business Gateway model has led to the reorganisation strategy.

"Now that we are able to fully concentrate on supporting the region''s ambitions to grow, we have developed a clearer idea of how best we can perform this role," he declared.

Those seeking an APICS qualification may be interested to learn that communities secretary John Denham recently urged local authorities to improve efficiency by working more closely with charities and the voluntary sector.

Manufacturing sector "starting to claw back"

Fri, 12 Feb 2010 15:03:00 GMT

The latest data indicated that Britain''s manufacturing industry is "starting to claw back a little bit of that lost ground", one expert has declared.

According to Capital Economics'' chief European economist Jonathan Loynes, figures from the Office for National Statistics (ONS) are "better than expected".

However, he cautioned that the sector has been through a tough period during the "last 18 months or so" and added that the hope is that the economy will rebalance, with a greater emphasis on industry and exports in the future.

The ONS statistics for December''s manufacturing output showed a 0.9 per cent increase over the month, although it remained down 3.6 per cent year-on-year, highlighting the importance of operations management and continuous improvement efforts.

Production rose in 11 out of 13 sub-sectors of the industry, falling in just two, following a 0.1 per cent increase in gross domestic product during the fourth quarter of 2009, returning the UK economy to growth.

Prevention services ''could reduce annual care bill''

Thu, 11 Feb 2010 15:32:00 GMT

The level of public money spent on care and support services in the UK could be reduced through the implementation of innovative new technologies, it has been claimed.

Care services minister Phil Hope explained that assistive devices such as sensors and detectors could ensure that older people do not have to be taken into residential care.

Such operations management strategies may be employed by the Department of Health to improve and reduce the costs of services, as Mr Hope revealed during a visit to a "wise home" in Harrogate.

Simply introducing Telecare could save the country an estimated £2 billion a year and the minister stated that the government is prepared a blueprint for a new "simple and affordable" national care system where "perosnalised services will be a central pillar".

Innovations that could be employed across the service include sensors that switch on lights when people get out of bed, devices that detect flooding and temperature monitoring to ensure homes do not become to hot or cold.

Those concerned with continuous improvement within the public sector may also like to note that the police service is aiming to deliver savings of at least £545 million by carrying out reforms.

Small manufacturers ''may lead UK out of recession''

Wed, 10 Feb 2010 16:57:00 GMT

The sector that could be responsible for leading the UK''s recovery from the economic downturn may by small manufacturers, it has been forecast.

According to an article published in the Independent, a return to gross domestic product growth in the last three months of 2009 could boost production, particularly among "small, agile" companies.

The news source noted that the latest purchasing managers'' index pointed to strong growth in manufacturing, with activity rising for eight months in a row and calls growing for a "rebalancing" of the UK''s economy.

An examination of a firm using operations management to boost its profits was included in the feature, with the Versatile Flooring Company in Luton introducing new and advanced production techniques to reduce energy usage and rejection rates.

Individuals considering taking a CPIM exam may be interested to note that the UK''s manufacturing index rose at its fastest rate in 15 years this January to 56.7, with any figure above 50 indicating growth in activity.

Services sector ''facing a challenge''

Tue, 09 Feb 2010 14:23:00 GMT

The latest data for the services sector indicates that it is suffering "but that could be due to external factors", an expert claims.

According to British Chambers of Commerce chief economist David Kern the recent purchasing managers'' index (PMI) shows that results are good for manufacturing "but less so than services".

This highlights the importance of services firms employing operations management in order to enhance efficiencies, although Mr Kern added that recovery can be sustained.

He suggested "it is early days and it will be a challenge" and stimulus measures should remain in place until 2011 to help small businesses to increase their confidence levels, something that may interest those considering operations training courses.

The PMI for the services sector dipped in January this year to 54.5, with the freezing weather and the increase in VAT undermining expansion.

However, the Nationwide Consumer Confidence Index has shown that optimism among firms rose in January by three points to 73, almost double the figure of 39 recorded for the same month of 2009.

Police service to improve operations management

Mon, 08 Feb 2010 13:23:00 GMT

The police service in Britain is aiming to carry out reforms and "improve value for money" as part of new plans.

Continuous improvement and other operations management techniques could play an important role in efforts to save at least £545 million.

Senior police officials have outlined details of proposed measures to overhaul the service, with recommendations coming from representatives from the Association of Police Authorities, the Association of Chief Police Officers, Her Majesty’s Inspectorate of Constabulary, the National Policing Improvement Agency and the Home Office.

Policing minister David Hanson remarked: "Our police forces are doing a great job of cutting crime and boosting public confidence, but we must make sure we get full value for every penny of taxpayers'' cash."

Suggestions in the document include altering shift patterns to reduce overtime payments, streamlining back-office support services, boosting the efficiency of processes and enhancing procurement policies to maximise delivery to the public.

Meanwhile, communities secretary John Denham recently urged councils to include the third sector in efforts to improve the efficiency of their operations as they can provide unique skills and benefits.

Accelerator Pedal Safety Recall Prius Braking Issues

Mon, 08 Feb 2010 00:00:00 GMT

The following briefing details the key facts concerning the safety recall of Toyota vehicles and Toyota’s official comment on reports concerning braking issues with Prius.

Further information will be provided by the Toyota GB Press Office as and when it becomes available.

Toyota advises customers who have any concerns to contact Toyota GB Customer Relations on 0800 1388 744 for assistance.

Click here to read the full article.

Firms ''should enhance resource efficiency''

Fri, 05 Feb 2010 09:00:00 GMT

Ensuring that businesses are sustainable can assist them in reducing costs and their impact on the environment, one expert has suggested, something that operations management could assist with.

Commenting on a new Beyond Carbon study from the Aldersgate Group, director of design and resource minimisation at waste reduction body WRAP Richard Swannell noted that a resource efficient economy can provide benefits on "environmental, economic and social" benefits.

"We cannot afford to ignore the increasing pressure we are putting on our water and food supplies, as well as on other important natural resources," he declared, pointing to the "intelligent and sensible solutions" included in the report.

A programme of continuous improvement may assist companies in the services sector to meet sustainability goals and help to combat climate change.

Speaking ahead of the launch of the study, environment secretary Hilary Benn suggested that more efficient enterprises are likely to enjoy greater success as natural resources become both scarcer and more expensive.

Analysts welcome positive manufacturing data

Wed, 03 Feb 2010 12:16:00 GMT

Experts have given a warm welcome for the latest manufacturing data, which exceeded predictions in January.

Remarking on a rise in activity to 56.7 last month, EEF chief economist Lee Hopley suggested that exports will push the economy forward and cautioned producers to concentrate on controlling costs, as inflation rates could rise.

Operations management will, therefore, continue to play a major role in the manufacturing sector, which may be of particular interest to those seeking an APICS qualification.

Meanwhile, RLAM economist Ian Kernohan predicted that the latest figures could lead to an upward revising of the gross domestic product figures for the last quarter of 2009.

"Clearly strengthening export demand is a key factor, but the pick-up in activity is also likely to reflect the fact that the stock cycle is turning," Ernst & Young ITEM Club senior economic adviser Andrew Goodwin commented.

The UK''s manufacturing index rose at its fastest rate in 15 years during January from 54.6 per cent in December, with anything over 50 indicating expansion.

Manufacturing index records strong growth

Tue, 02 Feb 2010 12:54:00 GMT

The UK''s manufacturing index reached 56.7 during January, rising at its fastest rate in 15 years.

The measure of activity in the sector climbed from an upwardly revised 54.6 per cent the previous month, indicating that it is starting to recover from the recession.

With exports boosted by the weak price of sterling, the Markit Economic and CIPS index exceeded analysts'' expectations and producers are starting to hire again, with activity in the employment index growing for the first time in nearly two years.

Any figure over 50 relates to growth in the sector and Markit senior economist Rob Dobson said: "The survey raises hopes that the sluggish recovery from recession signalled by gross domestic product data in the final quarter of last year will have gained momentum as we move into 2010."

Operations management techniques have been employed by many producers during the economic downturn in order to maximise profits and minimise costs, with the Confederation of British Industry recently stating that the UK manufacturing sector''s balance of production stood at +11 per cent over the three months to January.

Third sector ''should play role in council efficiency efforts''

Mon, 01 Feb 2010 12:10:00 GMT

Attempts by councils to improve efficiency and enhance their operations management should not neglect the third sector.

This is the view of communities secretary John Denham, who noted that charities and voluntary organisations offer unique skills and benefits to local authorities.

He explained that such bodies can assist in providing jobs for the unemployed, assisting with service delivery and helping with public service reform.

Speaking to the New Local Government Network, Mr Denham suggested: "[Voluntary and third sector providers] must have the chance to show how they could deliver the outcomes local people want by new ways of working and new ways of delivering services."

The minister added that the focus of delivery should not be only on the lowest possible cost but also on quality and he plans to meet with council representatives and the third sector to debate the issue of continuous improvement.

Mr Denham has also warned that taxpayers will be "intolerant" of those local authorities imposing cuts to front line services without improving efficiency wherever possible.

Carmakers urged to focus on efficiency

Fri, 29 Jan 2010 10:48:00 GMT

The motor manufacturing industry should remain cautious in 2010 and should employ measures that boost efficiency and innovation, it has been claimed.

According to KPMG, production volumes are expected to rise this year, but this is unlikely in western European markets and the US, where government-backed vehicle scrappage schemes are coming to an end.

In a response to latest figures from the Society of Motor Manufacturers and Traders (SMMT), the accountancy firm stated that those firms that will enjoy success this year are those which "continue to plan cautiously, develop innovative and efficient manufacturing and look to embed best practices and discipline as the norm across operations, financial and cash management".

The SMMT data showed a 58.5 per cent rise in car output during December 2009, the biggest leap since May 1976 and the first rise in 17 months, with production down by 30.9 per cent over the year.

Operations management policies may assist carmaker Nissan, which has revealed that it is creating a temporary third production shift and 400 new fixed-term jobs at its plant in Sunderland in response to high levels of demand for its Qashqai model.

Operations management could assist in government ICT efficiency drive

Thu, 28 Jan 2010 12:32:00 GMT

The government has unveiled plans to save around £3.2 billion of public money during 2013-14 by reducing expenditure on information technology.

Operations management techniques may well be employed by the public sector to enhance ICT infrastructure and ensure that it is more energy-efficient.

Under the new ICT Strategy, published by the Cabinet Office, a new cloud network will be established to allow bodies to operate from a single network and reduce the number of government data centres in operation.

"We are innovating and revolutionising our ICT systems to ensure that they are as effective and efficient as possible for those working in the public sector," Cabinet Office minister Angela Smith claimed.

The strategy is part of the Smarter Government programme, which targets ways of reducing the public deficit by 2014 by delivering efficiency savings throughout the public sector.

Those interested in operations training courses are also advised that continuous improvement and new efficiencies are being sought through a review of Urban Development Corporations in London, Thurrock and West Northamptonshire.

Manufacturing output rises 0.4% in Q4

Wed, 27 Jan 2010 14:35:00 GMT

The manufacturing sector witnessed quarterly growth in output at the end of 2009 of 0.4 per cent.

Contributing the most significant amount to a 0.1 per cent rise in total production activity over the three months to December 2009, the industry helped to push the UK economy out of recession.

Total gross domestic product rose in the fourth quarter of 2009 by 0.1 per cent, marking the first expansion in the economy following six quarters in a row of contraction.

Manufacturing dipped in the quarter to September by 0.2 per cent, contributing to an overall drop in production of 0.9 per cent.

Services output was also up over the fourth quarter of the year by 0.1 per cent after a 0.2 per cent fall the previous period.

Those interested in inventory control techniques may also be interested in recent figures from the Confederation of British Industry revealing that the balance of production in the UK manufacturing sector was +11 per cent during the quarter to January 2010.

Hotter Comfort Concept turns to operations management over move

Tue, 26 Jan 2010 12:08:00 GMT

Rather than move its manufacturing base to another country, Lancashire-based firm Hotter Comfort Concept has declared that it has enhanced its operations.

The shoe company has emphasised its commitment to UK production in the wake of the takeover of Cadbury''s by US food giant Kraft.

According to Hotter, it has invested £6 million in the past six years to streamline its manufacturing facilities and has implemented operations management to maximise profits.

Stewart Houlgrave, managing director, remarked that the company was founded by his parents and "through business decisions and operations [we have] created some of the most advanced shoe manufacturing technology in the UK".

Having celebrated 50 years in the sector, the firm has weathered the recession and is making around 1.3 million pairs of shoes each year.

Concerns have been raised about the future of Cadbury''s production operations if the Kraft purchase goes ahead, particularly in the West Midlands where it is based.

Operations management assists Debenhams in reducing costs

Mon, 25 Jan 2010 15:33:00 GMT

Debenhams has employed an enhancement programme that has reduced its cost per unit by over ten per cent compared with 2006-07 rates.

The firm has also introduced new vehicles and trailers to reduce the number of kilometres travelled by 792,000km and its overall carbon dioxide emissions by 517 tonnes since 2006.

Under the two year scheme, streamlining, internal process reviews, continuous improvement and operational developments to expand the business and deliver year-on-year cost reductions.

"One of the other key changes in recent years has been the evolution of an advanced warehouse solution," Debenhams head of logistics Paul Leggett explained, adding that this has enabled a focus on swifter movement of high-priority product lines through the supply chain.

The operations management improvements were revealed as Debenhams signed a new warehouse and distribution contract with DHL Supply Chain that expands an existing 12-year relationship between the firms until 2012.

Individuals planning to take an APICS qualification may also be interested to note that global electronics giant Panasonic has pledged to cut its carbon emissions by 50 per cent by 2018 by enhancing its operations management processes.

UK firms ''settle bills in better time''

Fri, 22 Jan 2010 15:17:00 GMT

Companies operating in the UK have improved their performance with regards to late payments, it has been found.

According to research conducted by information services firm Experian, the average time taken to settle bills by firms fell during 2009 compared with the previous year.

Companies took an average of 23.54 days to pay bills in December 2008, with this figure dropping my more than two-and-a-half days by December 2009 to 20.88 days.

Late payments improved most significantly among large organisations with more than 500 employees, with debts settled within 28.97 days last month, down from 36.1 days in January 2009.

"Companies are more aware now than ever that their credit score is affected by their payment behaviour," Experian Business Information head of commercial credit Joe Myers commented.

Enterprises in the service industry could use operations management to enhance their businesses processes and ensure that they are able to pay suppliers promptly.

Another report from Experian has suggested that the financial health of UK enterprises improved in 2009, with the rate of insolvencies increasing at a slower rate and the fiscal strength score rising from 79.46 in January to 81.37 by December.

UK manufacturing production rates rise

Thu, 21 Jan 2010 13:53:00 GMT

The rate of production in the UK''s manufacturing sector increased for the first time in two years, new data reveals.

A new report from the Confederation of British Industry (CBI) suggests output increased, with 31 per cent of 461 producers polled reporting a rise in output over the quarter to January.

According to the latest Industrial Trends Survey from the organisation, the balance for the period in question was +11 per cent, with export orders boosted by the current weakness of the pound.

"After nearly two full years of falling output, manufacturers are seeing a return to modest growth, thanks in part to improved overseas demand and much slower stock reductions," CBI chief economic adviser Ian McCafferty commented.

However, he also warned that the outlook for the sector remains uncertain, something that improving manufacturing processes through an APICS qualification could assist with.

Data published earlier this month by the Office for National Statistics indicated that industrial production output climbed by 0.4 per cent between October and November 2009, following a dip of 0.1 per cent the previous month.

Milner New Chairman At Institute Of Operations Management

Thu, 21 Jan 2010 00:00:00 GMT

Catherine Milner MIOM, Associate Consultant at Inventory Matters Ltd, has been appointed as the new Chairman of The Institute of Operations Management (IOM). She succeeds John Theophilus FIOM. IOM is the principal UK professional society for operations management in manufacturing, service industries and the public sector. The Institute is a membership body within The Chartered Institute of Logistics and Transport (CILT) and International Associate for the international association for operations management APICS.

Milner, a chartered engineer, comes to the office after involvement with IOM since the mid-1980s and has worked in the UK and Europe for a number of organisations in aerospace, telecommunications and petrochemicals. She credits IOM with having aided her career. She says ‘The Institute is a great way of increasing knowledge and networking with like minded people engaged with similar working challenges. IOM undoubtedly assists in creating more professional standards and encouraging best practice.’

Catherine Milner lists three themes for her tenure as Chairman. She hopes to raise IOM’s profile as a recognised industry expert. Secondly, she wants to build up the Directors Forum, in order to increase corporate membership and to encourage leadership towards excellence in operations management. And, thirdly, she wants to maximise the impact of the great offerings from the Institute – the Knowledge Bank, qualifications, events and networking opportunities.

Milner says ‘I am very pleased to have the opportunity to be IOM Chairman for this year. There are great people in the IOM – on the Steering Committee, in the regional groups, and at Head Office. I am honoured to have a role amongst them all.’

Notes for Editors

For further information for a photo of Catherine Milner please call Leonie Edwards on 01536 740143

The Institute of Operations Management (IOM) is the principal UK professional society for operations management in the manufacturing arena, service industries and the public sector. IOM recently became a membership body within The Chartered Institute of Logistics and Transport (UK) bringing UK supply chain professionals together to increase knowledge sharing, learning opportunities and professional excellence. The IOM was established in 1963, originally as two chapters of the then American Production and Inventory Control Society (APICS). From 1975 it functioned as an independent organisation called the British Production and Inventory Control Society (BPICS). It changed its name to The Institute of Operations Management (IOM) in 1996 and joined with The Chartered Institute of Logistics and Transport (CILT(UK) in 2007. In 2009 IOM became the International Associate for APICS in Great Britain. For more information about IOM visit iomnet.org.uk or for information about CILT, visit ciltuk.org.uk

The Institute of Operations Management offers a range of Lean training, from one-day workshops through to more in-depth courses, for both IOM members and the general public. For specific information on training, visit iomnet.org.uk/events/default.aspx

For press information, contact: Leonie Edwards. Tel: +44 (0)1536 740143. Email: leonie.edwards@iomnet.org.uk

New efficiencies ''to drive regeneration plans''

Wed, 20 Jan 2010 14:24:00 GMT

Regeneration projects in London, Thurrock and West Northamptonshire will benefit from plans to enhance operations management, it has been claimed.

This is according to communities ministers Shahid Malik and Ian Austin, who declared that a review of Urban Development Corporations (UDC) in these areas will result in stronger delivery arrangements and enhanced local planning responsibility.

Under the new agreements, greater partnership working between government and local authorities will be seen, with efficiencies delivered in collaborative procurement, IT and back office operations.

Continuous improvement is the focus of measures such as incorporating Thurrock Thames Gateway Development Corporation into regeneration body the Homes and Community Agency, more partnership working by the London Thames Gateway Development Corporation and more focused strategic delivery by the West Northamptonshire Development Corporation.

"Not only will the changes improve efficiency they will help us drive forward key regeneration projects such as the Olympic Park, the London Gateway port at Shellhaven and the redevelopment of Purfleet," Mr Malik stated.

The Welsh Assembly recently announced that a series of projects are being launched under the second phase of Invest-to-Save schemes in order to deliver public sector cost savings.

Call for articles and feedback

Tue, 19 Jan 2010 00:00:00 GMT

‘Operations Management’ is your membership journal and I’d really like to know what you think of it – are we publishing what you want to see? What topics are most important to you right now? Letters to the Editor have gradually faded away but I’d like to encourage you to pick up your pen (or laptop!) and talk to me directly! I look forward to hearing your thoughts…

In addition, I’m sure the majority of you have some interesting case studies or examples of best practice in operations to tell – and I am currently seeking new articles and contributions for the journal. Guidelines for authors are available here, so please take this opportunity to share your successes with your peers.

More information

IOM Regions – on the up

Tue, 19 Jan 2010 00:00:00 GMT

IOM Scotland is truly up and running in 2010 with a scheduled events programme that kicks off with a Lean Six Sigma and Works Visit at FMC Corporation UK, Dunfermline on 10th February – please note, there are only 5 places left, so please call Membership Services on 01536 740105 to secure your place.

In April, IOM Scotland will be visiting the Airport planning & Air Traffic Control Tower at Edinburgh Airport; May and June will see visits to learn about bottling operations and brewery operations respectively, both in the Edinburgh area. In July there will be a visit to Oracle ERP in Linlithgow. During September, IOM Scotland will put on a visit to see the Army Disasters Relief Operations in the Edinburgh/Fife area. Further details on all these events will be added to the web site and details emailed to all IOM Scotland members when available.

The six-strong Committee comprises of Dr Neil Towers FIOM as Chairman; Ken White FIOM, Vice Chairman; Dr Philippa Collins MIOM, Secretary; Graeme McLaren MIOM, Treasurer; Patsy Perry, Student Representative; and David Eadie as Industrial Representative. Thanks to all of you for your hard work and dedication in making IOM Scotland a success and great model for other IOM Regions to follow.

IOM West Midlands is following suit with an excellent schedule of learning events being planned on business strategy, marketing strategy, project management and process improvement for member organisations.

Nadine Evans MIOM is chairing the region and is planning to start out locally (Shropshire area) to create real networking opportunities for people interested in operations and the working environment, and to explore current issues, techniques and technology.

Initial plans are for the West Midlands Region to hold regular monthly meetings with topics set by the local members.

Again, details will be published to the IOM web site and emailed to members in the West Midlands Region when available.

APICS Examinations

Tue, 19 Jan 2010 00:00:00 GMT

The IOM held its first exam series for APICS in December. We have just received word that 82% of candidates passed first time – congratulations to all! This figure compares very favourably with international pass rates at 69% across the board.

The March examination is coming up rapidly with registration required by 29th January 2010. If you are planning to take APICS examinations, please email apics@iomnet.org.uk to request a Exam Registration Form today.

Inventory control techniques enhanced by Harro Foods

Mon, 18 Jan 2010 13:44:00 GMT

A Japanese food wholesaler in the UK has boosted its operations management practices by implementing a new warehouse management system.

The Empirica solution from Chess Logistics Technology has been employed by Harro Foods to enhance stock management and traceability across its activities, Materials Handling World magazine reports.

Providing the Wimbledon-based company with up-to-date information about its stock, it has reportedly streamlined internal processes and improved customer service.

Branwyn Darlington, Harro Foods general manager for logistics, told the news source that a "proper" computerised system was needed to cope with issues such as stock turns and best-before dates.

"Now we have a solution that supports our business and the way we want to work," he added.

Founded in 1987, Harro Foods imports and distributes products from Japan to speciality retailers and food services professionals across the UK from its head office and warehouse facility in south-west London.

Panasonic pledges to cut carbon emissions

Fri, 15 Jan 2010 12:56:00 GMT

A leading electronics company will improve its operations management processes over the coming years as part of a pledge to cut its carbon emissions.

Panasonic has committed to a 50 per cent reduction (120 million tonnes) in the level of greenhouse gases produced compared with 2006 levels by 2018 by maximising its use of resources.

Operations training courses may be required by the technology giant in order to meet its ambitious green targets and reduce its impact on the environment by its 100th anniversary year.

In a statement, the group said that in addition to minimising emissions from its business operations, it also plans to "introduce to the market its technologies, ideas and measures derived from such efforts", implementing techniques such as "recycling-oriented manufacturing" and "green work-style".

Commenting on the move by Panasonic, a spokesperson for therenewableenergycentre.co.uk described it as "a very positive step forward" that will help businesses, manufacturers and consumers "move towards a greener way of life".

Production output growth recorded for November

Thu, 14 Jan 2010 13:23:00 GMT

The UK saw its production output rise during November 2009 following a 0.1 per cent monthly fall in October.

Industrial production rose over the period in question by 0.4 per cent, exceeding analysts'' expectations, data from the Office for National Statistics (ONS) reveals.

According to the data, manufacturing production held steady between October and November, something which may be of interest to those involved in operations management and improving manufacturing processes.

Particularly sharp increases were seen over the month in the oil and gas production and mining and quarrying sectors.

The ONS figures also show that over the year to November 2009, overall output was down by six per cent, while manufacturing was 5.4 per cent lower than in 2008.

Commenting on the report, Caxton FX senior analyst Duncan Higgins said that it may be indicative that "the UK economy has finally returned to growth", with the current weakness of sterling continuing to drive up exports.

Darlington College Start Dates

Thu, 14 Jan 2010 00:00:00 GMT

The next Diploma in Operations Management: Wednesday evening 17th February at 6.00 pm

Enrolment is currently taking place:

For further information please contact the Programme Leader: Mark Alcock, Darlington college.
Tel: 01325- 503272 / E-mail: malcock@darlington.ac.uk

Poor service sector performance ''hampering economic recovery''

Wed, 13 Jan 2010 13:49:00 GMT

Britain''s recovery from the recession is being hampered in part by poor performance in the service sector, new figures indicate.

Data from the British Chambers of Commerce (BCC) shows that the sector performed worse than the manufacturing industry over the last three months of the year, with negative balances recorded for employment, homes sales and orders, cash flow and plant and machinery investment.

BCC''s chief economist David Kern notes that the UK is "struggling to enter the recovery phase" as a result of critical measures performing badly and adds that all domestic indicators for the fourth quarter were "disappointingly feeble, especially in the service sector".

Operations management could help service sector companies struggling in the current economic downturn, as the BCC calls for greater access to credit for businesses struggling with cash flow.

The Economic Survey for the three months to December 2009 suggested that progress was weaker than it was during the previous quarter.

Meanwhile, the latest Purchasing Manager''s Index for the service sector witnessed a rise in activity from 56.6 n November to 56.8 in December.

Warning over potential NHS IT spending cuts

Tue, 12 Jan 2010 14:39:00 GMT

Attempts to cut the cost of the NHS IT programme through operations management and other measures must not be carried out at the expense of its potential benefits.

This is the view of Intellect associate director Sureyya Cansoy, who claimed: "In these tough times it is important to look at finding efficiencies, but not to undermine the important role that technologies can play."

She explained that IT can be used in "transforming" service delivery and the ways in which government operates in the UK.

A poll of healthcare workers by website E-Health Insider revealed that NHS IT will come under pressure during 2010, with changes to the National Programme for IT expected in the wake of the general election and tighter budgets in the sector predicted.

In his pre-Budget statement to MPs in December, chancellor Alistair Darling stated that IT projects will be subject to cuts as part of attempts to reduce public spending, something which operations training courses could assist with.

New centres may enhance manufacturing operations management

Mon, 11 Jan 2010 16:48:00 GMT

The allocation of £70 million by the government to boost innovation in the manufacturing centre will see the initial creation of three research centres.

Located at Loughborough, Brunel and Southampton universities, the facilities are intended to boost future growth in the sector and could have an impact on operations management.

The Department for Business, Innovation and Skills funding has been provided for the development of state-of-the-art centres and the first trio of research institutions will focus on the development of internet and telecommunications photonics, liquid metals and regenerative medicine.

Business secretary Lord Mandelson declared that "a highly skilled, innovative manufacturing sector is vital to Britain''s future economic growth", something which operations training courses could help with.

His comments were echoed by Professor David Delpy, chief executive of the Engineering and Physical Sciences Research Council, which will manage the new facilities, who claimed that they have "the potential to create new industries and new jobs for the UK".

The most recent Purchasing Managers'' Index for the manufacturing sector rose from 51.7 in November to 54.1 in December 2009, indicating that production activity in the UK is increasing.

Welsh Assembly invests in public sector operations management

Fri, 08 Jan 2010 13:26:00 GMT

The Welsh Assembly government has unveiled plans to make public services "more effective and efficient" through a series of projects intended to deliver cost savings.

Under the second phase of Invest-to-Save schemes, the country will support a series of operations management initiatives designed to deliver continuous improvement in a number of authorities.

Announced by minister for business and budget Jane Hutt, the second trache of funding will go to successful public service bodies, including local authorities, the National Botanical Garden for Wales and the University Wales Institute, Cardiff.

"Investments will support in transforming the way [organisations] work and respond to the challenge of delivering quality services and outcomes for citizens during a period of tightening budgets," Ms Hutt declared.

A total of eight projects have been selected and include plans to streamline business processes, boost ICT usage and increase collaboration with other agencies.

UK communities secretary John Denham recently called for greater accountability with regards to public sector expenditure by quangos, councils and other bodies in order to enhance efficiencies.

Manufacturer boosts profits through operations management

Thu, 07 Jan 2010 13:04:00 GMT

Aerospace and automotive engineering firm GKN has reduced its overheads during the past two years by around £150 million and has witnessed a recent rise in pre-tax profits as a result.

The Times reports that the company has enhanced its revenues through a programme of measures and is now focusing its efforts on "gearing to rising sales on the other side of recession".

In addition to operations management, GKN has witnessed a boost in its automotive division as a result of the government''s vehicle scrappage scheme, in addition to its strong position in both the civil and military aerospace sectors.

The firm has upgraded its financial forecasts, according to the news source, predicting annual pre-tax profits for the year to December 2009 of £70 to 80 million, ahead of analysts'' expectations.

A recent EEF survey discovered that more than half of UK manufacturers have taken steps to reduce carbon emissions and enhance the energy efficiency of their operations in order to tackle climate change.

"Reassuring" manufacturing figures welcomed

Wed, 06 Jan 2010 13:12:00 GMT

Latest data indicating that the UK''s manufacturing sector is growing has been welcomed as "reassuring" by a financial specialist.

Head of the Travelex UK trading desk Mark Bolsom explained that the latest report is a "sign that our manufacturing industry is recovering" and "signals a positive end to a volatile year".

However, he warned that "despite these positive figures, the UK economy remains incredibly vulnerable" as a result of the growing public budget deficit, something that may be of interest to those involved in improving manufacturing processes.

The latest Purchasing Manager''s Index (PMI) rose from 51.7 in November to 54.1 in December 2009, ahead of expectations, with any number above 50 relating to an increase in activity.

Referring to the highest rating recorded since November 2007, Mr Bolsom highlighted the importance of UK exports to future economic growth.

Meanwhile, the PMI for the services sector increased between November and December from 56.6 to 56.8.

Manufacturing bases ''returning to UK''

Tue, 05 Jan 2010 16:03:00 GMT

Many producers are shifting production back to the UK if a new report is to be believed.

The figures from the Engineering Employers'' Federation (EEF) and accountant BDO could have major repercussions for operations management in the country.

According to the study, the move by manufacturers to relocate their operations to the UK is a response to growing concerns about rising transportation costs and the quality of goods made overseas.

The number of respondents agreeing that the country is a competitive manufacturing location rose from 43 per cent two years ago to almost 70 per cent today.

A total of 15 per cent of UK companies moved back to factories at home in the last two years, the survey of 300 manufacturers found, although many of those polled felt dissatisfied with the current tax and regulatory system.

The recent 2009 Environment Survey from the EEF revealed that more than half of British producers have taken steps to reduce their carbon emissions and enhance their green credentials.

Call for greater accountability in public spending

Mon, 04 Jan 2010 16:14:00 GMT

Operations training courses may be required by public sector bodies as a minister issues calls for greater scrutiny of spending.

Communities secretary John Denham has advocated more accountability for expenditure by councils, quangos and other public bodies on areas such as transport, health, police and fire services.

The Department for Communities and Local Government minister declared that billions of pounds of public spending will be made more transparent through the enhancement of data made available.

He suggested that the new system of Local Spending Reports will deliver additional efficiencies, adding that the move "will open the door to enterprise and innovation by encouraging individuals, business and third sector to come up with new solutions to old problems".

Local Spending Reports are intended to enhance operations management in the sector be allowing both citizens and councils to examine decisions closely. The first-ever such document was published by communities minister Sadiq Khan in April 2009.

New task force ''to drive public sector efficiencies''

Thu, 31 Dec 2009 14:53:00 GMT

Operations management in the public sector is set to benefit from the creation of a new task force.

Intended to "drive value-for-money efficiencies and protect frontline services" in councils, it will be headed by Manchester City Council leader Sir Richard Leese and mayor of Lewisham Steve Bullock.

The establishment of the body was announced by communities secretary John Denham, who claimed that it will examine where savings can be made within local government.

"Woe betide the local authority which cuts frontline services when it hasn''t made every possible efficiency savings," he declared.

Membership of the task force will comprise local government and union representatives and they will examine the potential for management restructuring, sharing services, reducing senior pay and cutting duplication of work.

It is a response to reforms of the public sector outlined in both the pre-Budget report and the Putting the Frontline First policy document as part of government efforts to deliver billions of pounds'' worth of operational efficiencies, including a pledge to curb senior pay.

Manufacturers ''reducing carbon emissions''

Thu, 31 Dec 2009 13:36:00 GMT

British manufacturers are cutting their carbon emissions and boosting green performance, with over half having taken action to do so.

This is according to new figures showing incentives and rewards rather than regulations encourage producers to alter their operations management procedures to address climate change.

A report by EEF explained that major drivers for green policies included customer requirement and adhering to environmental management systems.

The 2009 Environment Survey also revealed just one in ten respondents had seen sustainability issues fall in priority as a result of the recession, while one in three measure their carbon output although they are not required to do so.

"Policy must focus on encouraging companies to take a proactive approach to produce results and reward early action," EEF climate and environment policy head Gareth Stace said.

Manufacturing management professionals may also be interested to note that Reuters recently reported the US manufacturing industry is embracing lean concepts in order to compete more effectively with producers in countries such as China.

LEAN BUT NOT HUNGRY – IOM WARNS ON DANGERS OF RE-STOCKING

Mon, 16 Nov 2009 00:00:00 GMT

Efficient management should resist the temptation to increase inventory now that there are signs that customer demand may be inching up. The Institute of Operations Management (IOM) has warned that the benefits generated by reducing stock holdings during the past year should not be squandered by restocking to pre-recession levels. If demand has bottomed out and is now on the up again then more inventory may be needed – but not too much! Instead, businesses could use the advantageous trading conditions to improve supply and understand customer demand better.

Leonie Edwards, Manager – IOM, says that now that inventory is lean opportunities must be taken to maintain that situation and to take advantage of the benefits deriving from the imposed reductions in stock levels. She says ‘Businesses coming out of the recent hard times have inevitably learned new means of efficient operations at relatively low stock levels. Stock is waste – if you know when a customer wants your product then there is the opportunity to deliver without having to carry the added cost of that stock investment yourself. Accurate forecast of demand can yield substantial benefits, lowering costs and improving efficiency.’

IOM says that lower stockholdings produce benefits for both suppliers and customers. Edwards says ‘A mutually advantageous partnership between supplier and customer, rationalising stock levels held by both, should mean that the customer is never without adequate supplies but that waste is taken out of the supply chain. Reduced delivery quantities benefit both supplier and customer by improving cash flow, reducing warehouse requirements, and sharpening efficiency. Industry should take advantage of the massive improvements in supply chain speed and efficiency achieved in recent years – efficiency gains which themselves have made a significant contribution to the lean business philosophy.’

IOM says that suppliers and customers must now, as always, determine the compromise between the availability of product when the customer wants it, and the cost of achieving the supply. At the present moment in the economic cycle it makes sense to carefully examine more resourceful ways of meeting demand rather than laying in costly stocks ‘just in case’.

Notes for Editors

The Institute of Operations Management (IOM) is the principal UK professional society for operations management in the manufacturing arena, service industries and the public sector. IOM recently became a membership body within The Chartered Institute of Logistics and Transport (UK) bringing UK supply chain professionals together to increase knowledge sharing, learning opportunities and professional excellence. The IOM was established in 1963, originally as two chapters of the then American Production and Inventory Control Society (APICS). From 1975 it functioned as an independent organisation called the British Production and Inventory Control Society (BPICS). It changed its name to The Institute of Operations Management (IOM) in 1996 and joined with The Chartered Institute of Logistics and Transport (CILT(UK) in 2007. In 2009 IOM became the International Associate for APICS in Great Britain. For more information about IOM visit iomnet.org.uk or for information about CILT, visit ciltuk.org.uk

The Institute of Operations Management offers a range of Lean training, from one-day workshops through to more in-depth courses, for both IOM members and the general public. For specific information on training, visit www.iomnet.org.uk/events/default.aspx

For press information, contact: Leonie Edwards. Tel: +44 (0)1536 740143. Email: leonie.edwards@iomnet.org.uk

New IOM Chairman announced!

Fri, 13 Nov 2009 00:00:00 GMT

Catherine Milner MIOM has been appointed as the new IOM Chairman. Catherine succeeds John Theophilus FIOM, who did a fantastic job of steering the Institute through the early days as a membership body within CILT. We are very pleased to say John will continue to play an active role within his local Region – IOM South West.

Catherine Milner is a long-term IOM [BPICS] member who first discovered IOM when she undertook the APICS CPIM certification whilst living and working in Belgium. A Chartered Engineer with much experience and expertise within operations, Catherine is looking forward to engaging with the IOM membership and Steering Group to energise the Institute and raise its profile. Those of you that were active in the IOM in the 90s may well remember Catherine from events and conference committees.

An interview with Catherine Milner will feature in the December issue of Operations Management and provide insights into Catherine’s plans for her term as Chair.

On behalf of the Institute, I am delighted to welcome Catherine and I am confident that she will bring her personal style, flair and energy to highlighting the importance, and increasing the awareness of our Institute.

APICS Examinations

Fri, 13 Nov 2009 00:00:00 GMT

The first APICS examination series being run by IOM in December has proved a great success.
IOM has provided an exam centre in Manchester (in addition to the existing London centre) which has attracted 22 candidates.

APICS CPIM examinations will be offered every 2 months, whilst CSCP examination slots are available 3 times each year.

Click here for APICS exam dates and venues.

LEAN SKILLS – FAT RESULTS

Fri, 16 Oct 2009 00:00:00 GMT

The never ending quest for operational efficiency together with the economic recession mean that Lean management techniques, maximising efficiency and minimising waste, have become the essential ingredient in any industrial or operational strategy. The Accelerated Lean Skills Programme (ALSP), a new three day training course from The Institute of Operations Management (IOM), has proved an instant success with delegates. The first event was held in Oxford in October and will be repeated next April – early booking is advised.

ALSP is a practical, interactive and fast moving programme designed to give managers the essential underpinning knowledge required to plan and run Lean programmes. The event provides a path to the comprehension of the Lean philosophy, guidance on the construction of Lean programmes and testing their credibility, practical application of Lean techniques, and assessment of their operational impact.

Leonie Edwards, Manager, IOM said ‘The Lean philosophy constitutes a process of ‘structured common sense’ and delegates attending the first ALSP event seem to have become instant and evangelistic supporters of the concept. We have been delighted by the response with feedback welcoming the provision of real opportunities to improve working practices, reduce waste and improve productivity and profitability.’

The next ALSP will be held in Oxford from 21-23 April 2010. The residential rate for IOM members is £750 and £875 for non-members. Non-residential rates are £350 for IOM members and £475 for non-members. Further details of course content and registration from Membership Services, The Institute of Operations Management, 01536 740105, email: members@iomnet.org.uk

ENDS

Notes for Editors

‘Lean’ is defined as a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. In recent years Lean techniques have been increasingly adopted by manufacturers, retailers and supply chain managers.

The Institute of Operations Management (IOM) is the principal UK professional society for operations management in the manufacturing arena, service industries and the public sector. IOM recently became a membership body within The Chartered Institute of Logistics and Transport (UK) bringing UK supply chain professionals together to increase knowledge sharing, learning opportunities and professional excellence. The IOM was established in 1963, originally as two chapters of the then American Production and Inventory Control Society (APICS). From 1975 it functioned as an independent organisation called the British Production and Inventory Control Society (BPICS). It changed its name to The Institute of Operations Management (IOM) in 1996 and joined with The Chartered Institute of Logistics and Transport (CILT(UK) in 2007. In 2009 IOM became the International Associate for APICS in Great Britain. For more information about IOM visit iomnet.org.uk or for information about CILT, visit ciltuk.org.uk

For press information, contact: Leonie Edwards. Tel: +44 (0)1536 740143. Email: leonie.edwards@iomnet.org.uk

IOM Certificate and Diploma Courses starting in September

Tue, 15 Sep 2009 00:00:00 GMT

There are a number of IOM centres that can provide the IOM Certificate (Level 3) and the IOM Diploma (Level 5).

Darlington College
Contact: Mark Alcock, IOM courses co-ordinator
Tel: 01325 503272
Email: malcock@darlington.ac.uk

Government Announces Arrangements To Publish Rover Report

Thu, 03 Sep 2009 00:00:00 GMT

The Department for Business have announced that the independent Inspectors’ report into the collapse of the MG Rover Group will be published on September 11.

This follows the statement from the Serious Fraud Office that it has completed its inquiries and that, having sought legal advice, it does not intend to initiate a criminal investigation.

Preparations are being made immediately for the Report to be published. However, for legal reasons, an established process must be adhered to.

Business Secretary Lord Mandelson said: “It was important to have clarity on whether or not this was a case that the SFO should be investigating. The workers who lost their jobs and the creditors who were owed nearly £1.3 billion by the collapse deserved no less.

“They have waited a long time to see the findings of the Report and the way is now clear for us to publish. Today we are setting out the timetable and arrangements.”

Prior to publication the Secretary of State will, as is usual in Companies Act inspections, make a copy of the report available to those witnesses who, it is considered, need time to prepare themselves for publication. A minimum of four weeks from now until publication is judged necessary to ensure sufficient time for witnesses to be contacted over this holiday period and arrangements to be made.

Witnesses who are offered this opportunity and accept it will also need to agree to the terms and conditions laid down by Companies Investigations Branch prior to the report being made available to them or their legal advisers. The report will be made available to those witnesses four days before publication.

Independent Inspectors investigated the affairs of MGRG, its parent company Phoenix Venture Holdings (PVH) and MGR Capital Limited and 32 related companies between the purchase of MGRG from BMW in May 2000 and the date of it entering administration in April 2005.

They were appointed in 2005 under Section 432 of the Companies Act by then Trade and Industry Secretary Alan Johnson and had wide powers to require documents and the attendance of witnesses, including directors, officers and agents of the company.

The Inspectors delivered their report to the Department for Business on June 11, 2009. Following legal advice it was not published immediately in order to ensure any potential prosecution was not prejudiced.

BRC signs product standard deal for USA

Thu, 03 Sep 2009 00:00:00 GMT

Partnership will create a global manufacturing standard for consumer goods

A British Retail Consortium (BRC) product standard is a step closer to cracking America. A major contract to create a global manufacturing standard for consumer products has been signed between the BRC and North America’s leading retail trade association.

This agreement, signed by the BRC and Retail Industry-Leaders Association (RILA), advances the retail industry’s commitment to ensuring the safe and consistent quality of its products through independent certification of producers’ operations against the BRC Global Standard for Consumer Products. The contract also covers the training and awareness programmes that will help suppliers in their efforts to achieve certification against the Standard.

Certification is an effective and cost efficient way for retailers to establish confidence in products and reduces the burden of multiple audits for suppliers. Previously individual retailers set and enforced their own standards. Now major US retail names are likely to begin to require suppliers to show they are BRC certificated.

Dr. Geoff Spriegel, Director of British Retail Consortium Global Standards, said: “This partnership is an essential part of developing the BRC Global Standard for Consumer Products into the worldwide standard of choice. We are absolutely delighted to be working with RILA on this project. This commitment by leading US retailers is a major boost for the scheme”.

Casey Chroust, RILA Executive Vice President for Retail Operations, said: “RILA members have always been committed to selling safe products. This partnership advances that goal by establishing a meaningful standard for retail suppliers that ultimately assures customers that they can purchase with confidence”

The contract will kick off with the development of a global communications strategy designed to increase awareness of the Standard in North America, Europe and the Far East. Meetings are planned between the two organisations and others in early September to agree a three- year development plan that includes a series of visits to producing countries such as China to engage with retailers, suppliers and government officials.

Issue 3 of the BRC Global Standard for Consumer Products will be published in January 2010 supported by an Interpretation Guideline and a number of Best Practice Guidelines covering Toys, Electricals, Furniture, Health & Beauty, Textiles and Jewellery. The Standard lays down the requirements that the producer must meet in order to gain certification.

New scheme to benefit small and medium-sized manufacturing companies

Thu, 03 Sep 2009 00:00:00 GMT

A new scheme that will benefit small and medium-sized manufacturing companies in Britain is being launched next month.

The initiative is part of efforts by the Carbon Trust to assist enterprises in reducing their energy bills by as much as £40 million by enabling them to replace old equipment with energy-efficient technology.

Expert advice and financial support will be given to businesses applying for the Big Business Refit programme, which could potentially help thousands of firms.

The project follows a steep rise in applications for Carbon Trust interest-free business loans as a result of the recession.

Tom Delay, the agency's chief executive, explained: "With credit all but dried up elsewhere, the Big Business Refit breaks the deadlock by helping SMEs to buy the equipment that will both slash their costs and often transform their businesses."

In related news, data from the Confederation of British Industry recently indicated that the UK's production index has risen to its most promising level since June last year.

£4 million support for small British companies engaged in international research

Thu, 03 Sep 2009 00:00:00 GMT

• Eighteen British SMEs to receive funding
• Technology Strategy Board to invest nearly £4 million
• UK companies to develop new technologies and products with partners from across Europe

Eighteen small and medium sized British companies are to benefit from investment of nearly £4 million from the Technology Strategy Board to enable them to carry out cutting-edge research and development projects with partners from across Europe.

The British companies will link with partners from 17 different European countries to undertake research and development in a diverse range of technology areas, from biotechnology and healthcare through to transport, energy and electronics.

Explaining the background to the funding, Graham Mobbs, European Operations Manager at the Technology Strategy Board, said: “The Eurostars Programme is the first European funding and support programme to be specifically dedicated to small and medium sized companies. It seeks to overcome one of the major barriers to high-quality transnational research and development led by SMEs – the lack of guaranteed public-sector funding.”

One of the projects to be funded through the Eurostars programme is Maritime Carbon Capture and Storage (Maritime CCS), in which the UK partner is Process Systems Enterprise Ltd. The Technology Strategy Board will invest over £300,000 in this project, which aims to develop and screen alternative designs for carbon capture and storage (CCS) on board ships in transit, investigating the chemical capture of CO2 and its temporary storage until discharge at a port.

A second project, Fryer Odour Reduction Programme, aims to develop technology to treat contaminated air discharged by the industrial food sector that causes a nuisance and currently requires expensive and energy-consuming treatment such as incineration. The British company, TechniAir Ltd, is partnering with two Swedish companies to carry out the development work and the Technology Strategy Board is to invest £26,000 in the project.

TILACSys or Through-Ice Location and Communication System is a third Eurostars project, and will see Wireless Fibre Systems Ltd partner a Norwegian company. The project, which is to receive nearly £450,000 of Technology Strategy Board investment, will develop a wireless system capable of locating and communicating with Autonomous Underwater Vehicles, or AUVs. TILACSys will enable a surface vessel, helicopter or unmanned aerial vehicle to communicate with the AUV through the ice. The system will greatly de-risk under-ice AUV operations, with major benefits to polar operations in the Environmental, Oil & Gas and Security sectors.

Bullish UK manufacturers well prepared for growth in the next 18 months

Fri, 17 Jul 2009 00:00:00 GMT

Senior executives at the UK and US’s large and mid-sized[1] manufacturing companies are bullish about their future, but US firms have cut deeper into their headcount and R&D than their UK counterparts, who are set to take better advantage of the recovery.

Over a fifth of UK respondents (22%) aim to acquire competitors outright over the next 18 months, according to the new 'Manufacturers: Ready for the Recovery?' study by global business performance consultancy McKinney Rogers and researchers Ipsos MORI.

UK respondents are more likely to take market share from competitors (60% UK compared with 34% for the US), to develop new markets (54% UK compared with 32% for the US) and acquire new customers (54% compared with 28% for the US). Conversely, the US is more likely to consider acquiring businesses in the coming months, with 82% of US respondents agreeing to some extent to considering this, compared with 60% in the UK.

The report, which interviewed senior leadership team members in 100 different large and mid-sized manufacturing firms, half in the UK and the same in the US, reveals that many are expecting their business to be in a much stronger position after the recession (80% UK, 82% US), but have made different moves to combat the recession and have different intentions to succeed in the recovery.

Other highlights include:
• Both UK and US executives believe their companies are well placed to emerge from the recession (90% UK agree, 92% US)
• Few firms made redundancies as an initial reaction to the recession (24% UK, 16% US). The US was more likely to take the further step of redundancies (38% US, 24% UK)
• UK redundancies were most common in operational functions (78% UK, 71% US). US respondents said their redundancies had focussed on core parts of the business (86% US) more frequently than the UK (48% UK)
• Many firms expect there will be exciting acquisition opportunities in the sector during the next 18 months (72% UK, 88% US). Many will be actively considering acquisitions (60% UK, 82%US)

Damian McKinney, CEO of McKinney Rogers, said:

'We found many businesses in both Britain and the US expecting that their markets will have been dramatically changed by the recession. Their challenge is to make sure their plans are effectively implemented so they capitalise on the opportunities they have identified.

'The relative smaller size of the UK’s manufacturing firms compared to the giants of China, the US and elsewhere has made them more able to adapt quickly to the changing environment. Many UK manufacturers have generally taken strong, sensible measures and are surviving and even thriving.

'That said, achieving such growth is challenging and one of the biggest will be to ensure their strategic plans are effectively and quickly implemented to capitalise on the opportunities they have identified.

'Although these senior executives are bullish about their prospects, our research identified many areas that will cause them problems when they come to implement their plans. Concerns at disagreements in the senior team, skills of operational managers and communications to the ‘front line’ suggest the senior team have a long way to go before they really are ready for the recovery.'

Strategy For Low Carbon Businesses to Benefit British Jobs

Fri, 17 Jul 2009 00:00:00 GMT

The Low Carbon Industrial Strategy, launched today, sets out the action the Government is taking to ensure that British businesses and workers are equipped to maximise the economic opportunities and minimise the costs of the transition to a low carbon economy.

The strategy follows from Building Britain’s Future: New Industry, New Jobs, and sets out how the Government aims to ensure that the transition to low carbon is a source of quality jobs and business savings in Britain: from our rapidly developing civil nuclear industry and renewable energy sector, to energy saving in our smallest SMEs.

The strategy identifies a range of low carbon sectors with potential for job creation and growth. These include: wave and tidal power; civil nuclear power; offshore wind; and ultra-low carbon vehicles. It also sets out the Government’s strategy for removing barriers that are blocking the development of Britain’s full potential in these areas.

The strategy recognises that local and regional strengths offer a good foundation to realise future economic benefits for Britain. The first Low Carbon Economic Area in the South West of England will create a business and skills focus on marine energy demonstration, servicing and manufacture.

The strategy also sets out the first investments from the £405 million for low carbon industries and advanced green manufacturing announced at Budget 2009. Key investments include:

• Up to £60 million to capitalise on Britain’s wave and tidal sector strengths, including investment in Wave Hub – the development of a significant demonstration and testing facility off the Cornish coast – and other funding to make the South West Britain’s first Low Carbon Economic Area.

• Up to £15 million capital investment in order to establish a Nuclear Advanced Manufacturing Research Centre consisting of a consortium of manufacturers from the UK nuclear supply chain and universities.

• A £4 million expansion of the Manufacturing Advisory Service, to provide more specialist advice to manufacturers on competing for low carbon opportunities, including support for suppliers for the civil nuclear industry.

• Up to £10 million for the accelerated deployment of electric vehicle charging infrastructure.

• Up to £120 million to support the development of a British based offshore wind industry.

The strategy also recognises that there are challenges for the workforce particularly for those in high carbon industries. The Government will create a new Forum for a Just Transition to advise on how to address the issues, with representatives from Central Government, national, local and regional bodies, Trade Unions, business organisations, and third sector bodies.

Announcing the strategy Business Secretary Peter Mandelson said:

'There is no high carbon future. But if the transition to low carbon is inevitable, what is not inevitable is that we use the transition as a chance to develop new jobs, new industries here in Britain. This strategy builds on the New Industry New Jobs approach, outlining the strategic role the government will play alongside the private sector, to make the most of the potential benefits for innovation, growth and job creation in the UK.

'Low carbon and environmental goods and services are already worth £3 trillion to the global economy, and in the UK employ nearly 900,000 directly and through the supply chain. With the sector set to grow by over 4% per annum over the next six years we must do all we can to support British businesses and workers in benefitting. Today we are announcing the first investments under the £405M funding allocated in the budget. We must ensure that we equip businesses and the workforce with the capabilities and skills to take advantage of the potential benefits as the world moves towards a low carbon future.'

LCP Research Finds Companies Are Starting to Collaborate With Their Suppliers

Fri, 17 Jul 2009 00:00:00 GMT

Collaboration key to survival as the economic downturn forces companies to make significant changes to their supply chain...

Research by LCP Consulting, a leading specialist in customer-driven supply chain management has found that the majority of companies (two out of three) are starting to collaborate with their key suppliers as they are being forced to make significant changes to their supply chains as the economic downturn has worsened.

The LCP research, which was conducted across senior decision makers with a responsibility for supply chain management, also found almost half (45 per cent) are focusing on the risks in their supply chain. Furthermore, just over a third of companies (36 per cent) felt that the complex nature of their supply chains had increased these risks. Those surveyed also identified reduced consumer spending, the falling strength of the pound and their board’s decision to drive changes to conserve cash as contributing factors to increasing pressure on their supply chains.

Alan Braithwaite, Chairman of LCP Consulting commented:
'Our research demonstrates that companies are starting to move towards collaborating with their key suppliers to find common solutions. If carried out effectively, building and nurturing these key relationships along the supply chain will help them get more for less; whereas if companies just negotiated on price they will miss out on the benefits, and their suppliers will leave them high and dry when times get tough.

For many companies this is a new skill and mindset, but the future will be about co-operating and competing through shared supply, manufacturing capacity, and distribution and logistics.'

Collaboration in action
LCP highlights that this move towards collaboration is even happening amongst established brands. For instance, when Edscha, a German manufacturer and supplier to BMW filed for insolvency it presented BMW with a huge problem. The luxury car maker was about to introduce its new Z4 convertible and Edscha supplied its roof. It was impossible for BMW to find an alternative supplier in less than six months, so it collaborated with the company to help it become more financially stable.

Move to greening the supply chain continues
The LCP research also found that although almost two out of three companies had seen the economic downturn significantly affect their business in a negative way, the same number are still looking at ways to reduce their carbon footprint. However, over half felt that a strict regulatory environment (with penalties) is still the only way that organisations will start taking its carbon footprint seriously.

Alan Braithwaite, concluded:
'Whilst companies are citing a strict regulatory environment as the only way organisations will start addressing their carbon footprint seriously, there are changes to the rules which are becoming established in the form of public accountability through CSR standards and government initiatives. These new rules are being set, but it is now time that companies learn how to respond to them.

Supply chain management has a major role to play in both corporate and government adjustments to deliver a sustainable future. Our experience shows that 20-30% gains in efficiency (costs and emissions) can be achieved through the applications of end-to-end supply chain thinking.'

As companies put a top priority on cutting their supply chain costs, LCP Consulting says that their actions should focus on ‘five maxims’ so they ride the downturn and prosper in the recovery. For a copy of LCP’s ‘five maxims’ contact info@lcpconsulting.com or visit the LCP website at (www.lcpconsulting.com)

ONS Stats - Pointing the Way to Recovery

Fri, 17 Jul 2009 00:00:00 GMT

Following the release of today's ONS Index of Production statistics, Graeme Allinson, Head of Manufacturing, Transport and Logistics at Barclays Commercial Bank, said:

'Manufacturing seems to be reaching the bottom of the recessionary curve with a marginal 0.5 per cent decline in output between April and May and a slowing rate of 1.8 per cent in the three months to May. These figures indicate a continued slowdown in the rate of decline, and point the way towards eventual recovery.

'The PMI (Purchasing Managers Index) data for June shows a slower but nonetheless continued rate of improvement in manufacturing output. This reinforces the hope that the destocking which held the sector back in the first quarter will now give way to a re-invigorated supply chain and a pick-up in overall production levels.

'Globally, Sterling remains competitive and will act as a supporting stimulus as manufacturing once again finds its feet. The increase in both production levels and demand in India and China are a good indication of international recovery, and this can only be good for UK manufacturers.'

Knowledge Centre and Webshop Open Day

Wed, 15 Jul 2009 00:00:00 GMT

Thursday 17 September 2009

Venue: The Ray Horsley Room and Knowledge Centre, Earlstrees Court, Earlstrees Road, Corby, Northants, NN17

This is a unique opportunity and an open invitation to visit The Knowledge Centre at The Institute's main offices. Learn about all the information resources that are designed to help you in your work and study. This event is designed for busy lecturers, students and practitioners who will be able to gain an insight into how The Knowledge Centre and the Webshop can save you money and time. There will be short informal presentations over the course of the day to show you how to use the online resources and you will also have the opportunity to purchase books at discounted prices on the day.

This event is FREE OF CHARGE. Light refreshments are available throughout the day.

Lunch is available at an additional cost please indicate when booking if you require lunch.

Presentations for the day will focus on:

Accessing the online library catalogue
Find out about the Business Intelligence Service? Supporting you in your research and studies
World Newspapers Today - A database of over 800 newspapers
Corporate Business Review -a database that contains information on over 3.5 million companies in the UK

Speakers:

Peter Huggins - Knowledge Centre Manager
Lynn Mentiply - Webshop and Knowledge Centre SeniorExecutive

For further information and booking form please click here

Bookings to be made via Membership Services tel: 01536 740104 or email membership@iomnet.org.uk quoting Event Code C191

International operations and supply chain APICS qualifications now from the IOM

Tue, 23 Jun 2009 00:00:00 GMT

APICS Chief Executive Officer Abe Eshkenazi and IOM/CILT Chief Executive Steve Agg signing the partnership agreement.

The partnership makes available in Great Britain two key internationally recognised certification programmes. Certified in Production and Inventory Management (CPIM) is a programme designed to test candidates’ in-depth knowledge of a variety of subjects specific to production and inventory management. Certified Supply Chain Professional (CSCP) extends beyond internal operations to encompass all steps throughout the supply chain.

Leonie Edwards, Manager of IOM, said ‘We are proud and delighted to be the sole non-profit organisation to represent APICS in Great Britain. The partnership will enable the IOM to provide more comprehensive resources to operations and supply chain professionals throughout Great Britain and to bring an international perspective to our work.’

APICS Chief Executive Officer Abe Eshkenazi said ‘This collaboration creates opportunities for knowledge sharing that will benefit the profession worldwide.’

INTERNATIONAL OPERATIONS AND SUPPLY CHAIN QUALIFICATIONS NOW FROM THE INSTITUTE

Mon, 22 Jun 2009 00:00:00 GMT

A new partnership between two prestigious UK and US organisations will result in the increased availability of education, certification and membership programmes for professional personnel in operations and supply chain management throughout Great Britain.

The Institute of Operations Management (IOM), the largest operations management institute in the United Kingdom, has entered into a new alliance with APICS The Association for Operations Management, from the United States. The alliance will expand APICS’ presence in the UK and will result in APICS internationally recognised certification examinations, related products and membership services, including local meetings, conferences and other networking opportunities to be available in the UK.

APICS certification will now be accessible to members of the IOM and of its sister organisation The Chartered Institute of Logistics and Transport (UK).

The partnership makes available in Great Britain two key internationally recognised certification programmes. Certified in Production and Inventory Management (CPIM) is a programme designed to test candidates’ in-depth knowledge of a variety of subjects specific to production and inventory management. Certified Supply Chain Professional (CSCP) extends beyond internal operations to encompass all steps throughout the supply chain.

Leonie Edwards, Manager of IOM, said ‘We are proud and delighted to be the sole non-profit organisation to represent APICS in Great Britain. The partnership will enable the IOM to provide more comprehensive resources to operations and supply chain professionals throughout Great Britain and to bring an international perspective to our work.’

APICS Chief Executive Officer Abe Eshkenazi said ‘This collaboration creates opportunities for knowledge sharing that will benefit the profession worldwide.’

ENDS

Notes for Editors

The attached image is available as a hi-resolution image. Please contact us to request a copy. Caption: (Left to right) Abe Eshkenazi, APICS CEO, and Steve Agg, IOM/CILT CE, signing the International Associate Agreement between The Institute of Operations Management in the UK and APICS The Association for Operations Management in the US.

The Institute of Operations Management (IOM) is the principal UK professional society for operations management in the manufacturing arena, service industries and the public sector. IOM recently became a membership body within The Chartered Institute of Logistics and Transport (UK) bringing UK supply chain professionals together to increase knowledge sharing, learning opportunities and professional excellence. The IOM was established in 1963, originally as two chapters of the then American Production and Inventory Control Society (APICS). From 1975 it functioned as an independent organisation called the British Production and Inventory Control Society (BPICS). It changed its name to The Institute of Operations Management (IOM) in 1996 and joined with The Chartered Institute of Logistics and Transport (CILT(UK)) in 2007. For more information about IOM visit iomnet.org.uk or for information about CILT, visit ciltuk.org.uk

APICS The Association for Operations Management is the global leader and premier source of the body of knowledge in operations management, including production, inventory, supply chain, materials management, purchasing and logistics. Since 1957, individuals and companies have relied on APICS for its superior training, internationally recognised certifications, comprehensive resources, and worldwide network of accomplished industry professionals. APICS is based in Chicago. For more information about APICS visit apics.org

For press information, contact: Leonie Edwards. Tel: +44 (0)1536 740143. Email: leonie.edwards@iomnet.org.uk

Webshop Extra - now online!

Thu, 21 May 2009 00:00:00 GMT

Webshop Extra: your new, improved online bookshop

We are always looking for ways to improve the service that the IOM Book Shop provides and to
extend the range of books it can offer. As a result, we are pleased to introduce Webshop Extra.
Webshop Extra is a bookshop within a bookshop: a new department that offers over 800,000 titles for all ages and interests. Books are available on diverse topics, ranging from science to sport, history to food, fiction to travel.

Love a good read?

Do you enjoy a good read? Love getting stuck into a good book? Do you read industry-related books to help you get ahead at work, to help with your studies or for day-to-day reference? Imagine how many more you could read if you were able to make significant savings on them. The IOM Book Shop has long enabled members to save money through special membership discounts negotiated with key publishers, bringing you real cost savings: discounts on every title for every member. On Webshop Extra, you can browse, search and order from an extensive list of books, including specialist publications that will meet all your study and information needs.

Introducing Webshop Extra

If you are looking for a gift for a friend or loved one, a school text for a son or daughter, a good
holiday read or your favourite celebrity’s autobiography, Webshop Extra can provide it. If you do not usually buy books online, do not worry: using Webshop Extra is as simple as walking into your local bookstore. A link within the IOM Book Shop will take you straight to Webshop Extra, where you can browse the titles available from the comfort of your PC or laptop. What is more, you do not have to waste time and effort carrying the books home with you; Webshop Extra delivers the books straight to your door in two to five days. The Book Shop team is always on the lookout for more and better discounts to ensure we can bring you the titles you want at the right prices. The Book Shop’s friendly staff are, of course, available to answer your queries or take your orders direct.

You can start enjoying your whole new book shopping experience at Webshop Extra today.

Simply go to: http://shop.ciltuk.org.uk/

Email your queries or orders to: books@iomnet.org.uk or call: Tel: +44 (0)1536 740105

R and D Budget snub could cost UK dearly

Mon, 18 May 2009 00:00:00 GMT

Darling’s failure to boost innovation incentives could send R&D contracts – and UK jobs – overseas

Alastair Darling’s so-called ‘Budget for jobs’, saw the announcement of several packages aimed at kick-starting a healthier recovery, including a £2million boost to JobCentre Plus services and plans to generate 400,000 jobs within ‘green industries’ over the next five years.

But David Marshall, Director of R&D tax specialist Alma Consulting Group, believes the Chancellor has missed the point: “Growth, and the subsequent jobs that this creates, is essentially driven by the development of intellectual property and innovation, which in turn is driven by research and development. It’s an expensive investment, which is why so many businesses outsource their R&D overseas. One way we can encourage innovation in the UK– where it can generate jobs – is by making existing working incentives, like the R&D Tax Credit scheme, more financially appealing to businesses.

“So why is it, after headway was made in the 2008 Budget, have R&D Tax Credits been snubbed this time around? Particularly at a time when an essential part of the road to economic recovery derives from innovative companies?

“Darling promises a ‘green revolution’ and expansion for core sectors like pharmaceuticals, bioscience, advanced manufacturing, health care and IT, yet these are the sectors that are highly driven by R&D. It doesn’t make sense to try and boost one without boosting the other.

“Whilst R&D tax benefits have improved over the last few years, the scheme still pales in significance to the tax reliefs available to businesses in France. The danger is this: if the less competitive R&D Tax Credit rates we have in the UK leads businesses to outsource their R&D overseas, the opportunity to create vital UK jobs could be lost, and that’s a problem the Chancellor won’t be able to ignore.”

The UK is one of the OECD (Organisation for Economic Cooperation and Development) countries, all of whom offer some type of R&D investment incentive. The UK target from the scheme is to encourage UK innovation achieving 2.5% of GDP investment in R&D by 2014. In 2008, R&D tax credit enhancement increased from 150% to 175% for SMEs, and from 125% to 130% for large companies.

Don’t Risk The Future By Cutting Back On Training Warns The Skills Academy

Mon, 18 May 2009 00:00:00 GMT

Manufacturing companies are risking their future prosperity by cutting back on training and laying off skilled staff in an effort to reduce costs during the current economic crisis.

That’s the view of the National Skills Academy for Manufacturing (The Skills Academy), an employer-led organisation that believes many businesses are tempted to save money by reducing investment in training because they cannot see immediate benefits.

Explained Bob Gibbon, Managing Director of the Skills Academy: “One of the most important lessons we have learnt from the last serious recession is the need to retain skills within manufacturing.

“When somebody leaves the industry they are often lost forever and if the UK is to recover quickly from the recession it will need world-class skills to help drive the economy forward.

“I would therefore urge business to think long and hard before considering cutting back on training and development or making unnecessary redundancies.

“If they do both the company and the UK as a whole will face more problems further down the line when the immediate crisis is over.”

Throughout the current slowdown, the Skills Academy has been working with a wide range of employers to ensure that skills training delivers a significant return on investment.

In the past research has shown that just four per cent of training fulfils its true potential and a typical company spending £10K on training - without a proper training programme - may lose up to £6K.

However the Skills Academy is pioneering a system that could see the same investment realise up to £50,000 profit.

“Many organisations treat training as a cost but they really need to see it as an investment that will lead to a competitive advantage for their company,” continued Mr Gibbon.

“Through our Learning Engine programme we identify the needs of the employer and match them to the most appropriate training – ensuring that the business receives the most appropriate and cost effective skills support at a time when they need it most.

“In a recession, this type of support is more important than ever because businesses may need to adjust their focus or adapt to a new pace of work. Their whole business model might need to change and they will need the right skills set to react,” he added.

‘No-Nonsense Guide’ To Help Businesses Find Finance

Mon, 18 May 2009 00:00:00 GMT

A new online guide to help Small and Medium sized Enterprises (SMEs) access funding for growth and innovation has been launched by the Government.

Investing in innovation is crucial to businesses looking to bring new and improved products and services to the market and boost their profitability. During the downturn this is especially important but will become even more vital for businesses that want to grow and become more competitive as the upturn comes.

The new guide, ‘The No-Nonsense Guide to Finance for High Growth and Innovative Businesses’, will act as a one stop resource for companies which want to know where and how they can access sources of funding available to support innovation. It is available free of charge on the Business Link website www.businesslink.gov.uk/no-nonsense

The guide bridges the information gap between providers of funding and SMEs to ensure they can find out about and access the full range of funding options available to support innovation. It includes details on funding from both the private and public sectors. This includes organisations like the Carbon Trust, which financially support firms working on technologies to cut carbon output, through to Regional Development Agencies which roll out a range of funding schemes including Innovation Vouchers, or their equivalent, worth up to £10,000 to help small businesses purchase innovation support from sources of research expertise, including universities.

The guide offers advice to firms on:

How to assess your funding needs
Where and how to get the right advice
The funding options and processes
How to pitch to and deal with investors
Case studies from businesses

Minister for Science and Innovation, Lord Drayson, said: “Supporting businesses to innovate and grow is especially important during the current downturn. It is these firms that will create the jobs, products and services of the future.

“Accessing funding is vital for any business, whether through grants to support development, loan guarantees or tax credits to invest in scientific and technological research. This No-Nonsense guide will ensure businesses are fully aware of their options, bringing together the information that businesses need to get support and get on.”

Minister for Economic Competitiveness and Small Business, Baroness Vadera, said:
“Innovative businesses will play a key role in the future of our economy so assisting these businesses to innovate and grow is particularly important, especially during challenging economic times.

“This guide draws on the experience of a range of businesses and the expert advice from the industry. It is a succinct and practical resource that will leave innovative businesses better positioned to take their next steps.”

The launch of the guide follows the Government’s commitment to increase awareness of the funding available to SMEs for innovation, set out in the ‘Innovation Nation’ White Paper published by the Department for Innovation, Universities and Skills (DIUS).

It also follows the recent launch of the Government’s ‘Solutions for Business’ – a simplified portfolio of business support products which will make it easier for companies to find the help available for common business issues, such as growing, finance, skills, innovation and the environment.

It’s official IOM Scotland is now up and running

Mon, 18 May 2009 00:00:00 GMT

IOM Scotland has been officially relaunched at a very successful evening event that was greatly enjoyed by everyone who attended. A big thank-you must go to all members who took the trouble to express their interest in attending the launch and future Regional events.

The success of the evening was in no small way down to the standard of the topical and informative presentations given by: Dr Neil Towers, Regional Chairman; followed by Leonie Edwards, Manager – IOM, who gave an update on national IOM activities and links with CILT; and finally Steve Graham, Managing Director, Scottish Manufacturing Advisory Service, who spoke about the Scottish Office and the funded work it is carrying out, with some striking results.

The evening event also included a working session, which proved to be very insightful. Rest assured that the board has taken away a host of actions that will be followed through.

The Region is currently planning a range of networking and knowledge-sharing events and will issue a full diary schedule as soon as dates and locations have been confirmed. We are very interested in hearing from companies that have an operations management story to tell, and that in doing so can help us host an event. This could either be a minor event, such as a simple site visit, sharing operations management practices, or a major event involving guest speakers and topical debate on current themes in operations management. We would naturally lead the planning and communication on all of these events. Perhaps:

- Your company is proud of its practices and willing to share
- There is an interest to learn more about operations management
- You want to talk about past, present or potential members in your organisation
- You have access to a great venue with a mutual interest in operations management

If you can help us, please get in touch. We would also welcome and appreciate your ideas for making IOM Scotland events successful. Let us know which topics interest you.

Dr Neil S Towers
Chair – IOM Scotland
Email: isr@iomnet.org.uk

IOM Chief Moderator Position

Mon, 18 May 2009 00:00:00 GMT

The Institute of Operations Management (IOM) is currently looking for a suitable individual to fill the Chief Moderator position. The IOM Chief Moderator is an ambassador of the Institute and a champion of the quality and integrity of its educational activities. He or she provides the final judgement on examination and assessment where required. The Chief Moderator is required to attend the Qualifications and Awards Committee meetings, the Annual Moderator’s Day, The Annual Centre Day and training courses where necessary.

The Chief Moderator should have relevant industrial experience at an appropriate level, along with an understanding of the practices and procedures in educational establishments. He or she must be a member of the Institute, and will normally hold a first degree in a relevant discipline. The successful individual will have good communication skills and be able to use tact and diplomacy. An ability to write concise and precise reports is essential.

The honoraria re-numeration for this work is £500 per annum, and all work which is undertaken in addition to the basic duties is paid at agreed rates.

If you are interested in this position, and for further details, please send a current CV along with a covering letter to: Katie Lisle, the Learning Materials Coordinator at the Corby office.
Contact: Katie Lisle, The Institute of Operations Management Earlstrees Court, Earlstrees Road, Corby, Northants NN17 4AX; telephone 01536 740111; email : katie.lisle@iomnet.org.uk.

Lean Enterprise UK - LinkedIn

Mon, 18 May 2009 00:00:00 GMT

Lean Enterprise United Kingdom is a networking group for UK (Great Britain [England, Wales & Scotland] & Northern Ireland) practitioners (not consultants) and is run by Shingo Prize winner Professor Peter Hines, Chairman, Lean Enterprise Research Centre, Cardiff University. It is designed for those interested in taking lean beyond the shop floor tool stage to full Lean Enterprise implementation. The group is meant for members to share their experiences, questions, successes and failures. It is also designed to signpost members to articles, activities or events that may be of interest to them. The group may also be of interest to those from a wider Continuous Improvement, Operational Excellence, Agile or Six Sigma background. The group is a not-for-revenue group and is not affiliated to the Lean Enterprise Institute, the Lean Enterprise Academy nor the Global Lean Network.

Click here for further information or to join.

Satisfying your customer order

Tue, 17 Mar 2009 00:00:00 GMT

And how Ask Jeff can help!

A leading UK fulfilment house launches its free online problem-solving service today. The Fulfilment Store, based in Rugby with clients that include Wrigley’s, BP and Amnesty International, has launched its online query service ‘Ask Jeff’ in response to frequent questions posed by client marketing and operations managers. Ask Jeff is a free no-obligation service designed to help provide best practice advice for anyone managing a fulfilment process.

In the fulfilment business since 1987, TFS works with a range of clients to deliver their fulfilment and distribution operations. From blue chips to charities, TFS provides what each client needs – from call handling, to picking and packing, to literature fulfilment and product shipping.
Fulfilment means different things to different clients, and business sectors differ widely in terms of how fulfilment needs to be handled. Each fulfilment process is therefore relatively unique.

TFS Managing Director Jeff Larcombe – the Jeff in ‘Ask Jeff’ – explains:”
Over the years we’ve handled many calls from firms that are at their wits end on distribution, or that want to make sure their end-customers get the same quality and delivery time after time. We wanted to provide an online and easily accessible resource for any business, whether they are an existing client or not, struggling with its fulfilment operations”.

Operations and purchasing managers as well as marketing professionals face major challenges to their fulfilment operations on a daily basis not least within the current economic climate.

Jeff says ‘Fulfilment as a service isn’t about to end tomorrow. Goods and products still have to reach businesses and consumers but now more than ever need to do so using the most cost-effective means. Our innovative problem solving solution means that you can use ‘Ask Jeff’ as a sounding board before you commit valuable time and money to fulfilment and logistics. The service is totally free and fully confidential and I promise that users won’t be ‘sold to’.

Dealerships are key to an auto industry turnaround

Tue, 17 Mar 2009 00:00:00 GMT

Dealerships are key to an auto industry turnaround, states new report from Arthur D. Little

New study warns OEMs that without brand experience at the dealership level, manufacturers risk losing market share to more brand-savvy competitors

A new report released today by management consultancy Arthur D. Little warns OEMs that they must do more to achieve customer brand loyalty at the retail level, and predicts that dealerships will be the cornerstone of automotive brand building in the future. With 2008 new car sales having reached record lows in most developed markets, global automotive companies are under more pressure than ever to avoid collapse. Nearly 80% of all car purchases are still done face-to-face, Arthur D. Little’s “Delivering the Brand,” warns that as the industry faces a growing number of new competitive pressures, global automotive brands must develop dealership management initiatives to ensure their retail networks are building and reinforcing brand loyalty from the test drive through to after sales service.

According to Arthur D. Little’s latest report, even before the full impact of the global credit crisis hit the automotive industry in the second half of 2008, the sector faced major changes to its competitive arena, which were brought about by: regulatory pressure on CO2 emissions, international safety standards, high oil prices, and changing customer lifestyles. Competition amongst global players has been pushed even further as a dramatic increase in overall vehicle quality over the past decade had progressively weakened the role of the product itself as the key differentiator.

Fabrizio Arena, the report’s author and a Senior Manager in Arthur D. Little’s Global Automotive & Manufacturing Group, commented on the report’s key findings:

"Dealerships have a major role to play in delivering an excellent brand experience that will attract new customers and retain the existing base. Despite product differentiators, more responsibility for the customer’s overall brand experience must lie with the dealer, and automotive brands are ultimately reliant on their dealer networks to manage customers’ in-store buying experience from start to finish in order to build the global brand.”

Improving the brand experience

Based on an analysis of and research into each aspect of the automotive purchasing experience, Arthur D. Little’s latest report outlines a four step approach for global automotive brands to manage customer satisfaction through their retail networks. Ensuring results and investment decisions are consistent with customers’ expectations and its dealerships’ capabilities are key to implementing an effective global brand strategy that will reinforce the products’ desirability through a positive customer brand experience.

Fabrizio Arena continued: "To be successful, a global customer satisfaction improvement program for the automotive industry requires a clearly defined relationship between the OEM headquarters and the local market profit center (local branches). Defining roles and setting consistent, measurable targets will allow local branches to adapt the corporate brand strategy into the local market context in a meaningful way.

Citing an example from the report, Arena concluded: “Customer satisfaction is an urgent concern for OEMs looking to move ahead of their competitors in an environment where simple survival is every brand’s primary objective for the year ahead. By adopting such an approach, a local branch of a world-leading OEM we’ve worked with has improved its customer satisfaction performance by approximately 16% in a single year, and moved up several places in the New Car Buyers’ Survey, a key industry benchmark.”

The aim of Arthur D. Little’s report is to offer OEMs the full range of considerations necessary to successfully implement a brand strategy that links product performance with customer experience satisfaction. With the credit crunch forcing unprecedented competition for those consumers still on the market for a new car, loyalty and retention programs must be a vital element of a global OEMs survival strategy.

Delivering the Brand is now available for download at www.adl.com/delivering_the_brand.

2009 AGM

Tue, 17 Mar 2009 00:00:00 GMT

NOTICE

CILT(UK) 2009 AGM

Notice is hereby given that: the Annual General Meeting of The Chartered Institute of Logistics and Transport in the UK will be held at The Hotel Russell, 1-8 Russell Square, London. WC1B 5BE on Friday 8 May 2009 commencing at 11.00am to conduct the following business:

As Ordinary Business

1. To consider and if thought fit adopt the Accounts for the year ended 30 September 2008 and the reports of the Directors and Auditors.

2. To re-appoint Mazars LLP Auditors and to authorise the Directors to agree their remuneration.

Dated 21st January 2009
By Order of the Board

Details in respect of voting and appointing a proxy will be available to Members shortly.

Half price selected publications for Members

Tue, 17 Mar 2009 00:00:00 GMT

There are a number of selected publications available from the Book shop at half price to IOM Members.

View the offers here.

Barclays ONS Index of Production stats

Tue, 17 Mar 2009 00:00:00 GMT

Barclays Commercial Bank comment on the ONS Index of Production statistics:

Commenting on today's ONS manufacturing figures, Ray O'Donoghue, Head of UK Manufacturing at Barclays said:

"The 2.9% drop in manufacturing output month on month is broadly in-line with figures coming out across Europe. As a picture of strain on UK manufacturing becomes clearer these figures, along with the EEF’s report that all sectors of manufacturing have suffered falls in output and orders, make for a stark indication of the full impact of the current market. However, there remains some buoyancy even in the midst of this landscape; exchange rates to the euro-zone and the US have remained fairly constant in recent months enabling UK export to be a highly competitive offering.

Despite much pressure and difficulty in calculating budgets for the year ahead, UK industry is doing everything in its power to manage costs. Manufacturers, having survived painful times in the past, are using their experience and looking ahead. The forward thinking among them are aiming to secure financing early to secure longer term lines. When it comes to managing costs; temporary shut-downs, shorter working weeks and taking all measures possible to outlast the recession are acts of resilience that will help the sector turn the corner out of the current market.”

Members wanted for the Qualifications and Awards Committee (QandA)

Tue, 17 Mar 2009 00:00:00 GMT

The Institute of Operations Management (IOM) is currently looking for members to volunteer for election to the Q&A committee. The committee members represent both industry and academia and individuals interested will need experience in the field of operations management, combined with an interest and knowledge of professional development and education.

The committee meet bi-annually and regularly discuss such matters as syllabus development, assessment strategies and examination structure as well as receiving a situation report on IOM’s qualifications, and a centre update. In addition to this there is also a yearly Centre Day and Moderator’s meeting.

The Q&A committee is responsible for the development, delivery and award of high quality, accessible qualifications that will add value to the operations management community and the Institute. The views of the committee are valuable to IOM, as they provide a basis for making changes, innovation and the general running of IOM’s professional development department.

Attendance to the Q&A meetings is voluntary but the IOM will pay for all related travel and subsistence expenditure.

For further information, contact: Katie Lisle, Learning Materials Co-ordinator. The Institute of Operations Management, Earlstrees Court, Earlstrees Road, Corby, Northants NN17 4AX. Tel: 01536 740111. Email : katie.lisle@iomnet.org.uk

How does Britain fight its way back

Tue, 17 Mar 2009 00:00:00 GMT

Peter Mandelson Mansion House Speech - City Trade and Investment Dinner

Over the years, this night and this speech have been a chance to reflect on a period of stable economic growth in Britain and a growing world economy. From this lectern we've had an annual stocktake on the building of a globalised economy in the UK, with some of the highest rates of inward investment, employment and innovation in the world. The consolidation of the City of London as a global and European hub for commercial and financial services.

Inevitably, this year is different. We face not just a global crisis of credit, but now a global crisis of demand. We can't separate the confidence problem from the liquidity and solvency problem, and both must be solved. That's why the entire thrust of the government has been directed for six months at repairing the hole in the banking system and doing everything we can to keep finance available to viable businesses of all sizes.

Repairing the hole in confidence is also a global problem, with a national dimension. It means being clear about where we need to do things differently and the important lessons to be learnt, but also insisting on what we have got right in the UK, in the City, in government and industry. Some are talking the UK down. I'm going to talk the UK up.

I believe that, over the last decade, in our fundamentals, the UK has overwhelmingly made the right choices. In our openness to trade and investment. In our competition regime and flexible product and labour markets. In the research and development policies that have helped innovative firms grow and prosper here. Above all, in our gains in productivity, which, as Paul Krugman says "isn't everything, but in the long run, is almost everything".

A bit like a blue chip that's taken a knock in daily trading, I believe that the UK's fundamentals will be borne out when the global economy returns to growth. We will restore and rebuild, and we will emerge stronger and better. But we will emerge a different country. The shape of our economy, the drivers of its growth, our approach to the relationship between the private and public interest. These need to change. The Lord Mayor has just called for a politics of reconstruction. I agree. That's what I'd like to set out tonight.

Constraint and opportunity

The next decade in the UK will be defined by both a constraint and an opportunity. The constraint lies in the need to sustain growth while holding to tight public spending discipline in the medium term and paying down borrowing. Maintaining our capital investment and our human capital with a pot of public capital that will grow less quickly.

We are right to continue stabilizing and repairing the banks. We are also right to refuse to retrench on vital spending in the teeth of falling national output. We have learned that lesson from previous recessions. Short term cuts mean longer term costs to competitiveness and capacity. But we are also right to set out clearly, from the start, how we intend to pay for this in the medium and long term.

So the search for yield, so to speak, on the public pound is going to be tougher than ever. And that means a renewed focus on public sector reform and productivity. That's one of the reasons why the government made the decision to push ahead with modernization of the Royal Mail: because an unreformed service is a drag on public resources at a time when every pound matters more than ever. It means, I believe, some basic choices about where and how we invest public money. And there is no priority more fundamental than the return to growth, and a balanced economy for the future. That underwrites everything else.

But there is also huge opportunity. The global economy will double in size in the next two decades, driven in large part by India and China. For all of their current problems, both the US and to an even greater extent our European hinterland will remain prosperous markets full of commercial opportunity. A competitive exchange rate will provide a real opportunity for UK exporters. So long as we can keep those markets open - and this is absolutely critical - then they are ours to compete in.

So Britain will fight its way back by focusing on its strengths in high-tech manufacturing, aerospace, automotive, biosciences and precision engineering. Britain will fight its way back by catering for the growing global market for business, computer and financial services. Through a City that will remain preeminent as a world centre for banking, trading, insurance and specialist finance. Britain will fight its way back by continuing to nurture the strongest creative sector in the world, exporting more cultural goods than any other economy in the world. Kate Winslet was just the beginning...

Industrial Activism

But these opportunities will not just fall into our lap. We will come under relentless pressure as others continue to develop their own strengths. And that's where the role of government becomes important. Private enterprise will drive our success. Competition will keep us lean and innovative. It will be the million small choices of the market that define and refine the technologies we use and the way we do things. There is no case for British protectionism and none for economic nationalism. British companies thrive in, and depend on, an open European and global market, and the same is true for any European country or company.

But the competitiveness of a company is not just a measure of the quality of its product. It is not just a measure of its entrepreneurialism and innovation. It is also a measure of the infrastructure, skilled workers and enterprise environment that it draws on. We must make sure British companies and British workers are equipped for the opportunities ahead. If the end is high-value added jobs and growth in the UK, we have to will the means. Government has to provide the regulatory certainty, clear procurement rules, the predictable market framework in which the private sector can then make its own decisions.

We're committed to British manufacturing as part of a balanced British economy for the future. Now we need to make the UK the best place in the world to help build the next generation of single aisle passenger jets, or produce civil nuclear technology, or design semiconductors. And the list goes on. We've built a mix of investment and procurement policies that have made the UK a leader in civilian and military aerospace design and manufacture. It's time to secure those strengths for the next decade, and to do the same, for example, in rail transport and low carbon vehicles.

We're committed to British life sciences. Now I am working with Alan Johnson and Paul Drayson to make the UK the world's leading location to carry out life science research and develop the drugs of the future. That will include a cast-iron commitment to a stable regulatory environment and the research and development facilities that enable companies to make the long term investments necessary to produce the next generation of innovative and targeted medicines.

We know that digital infrastructure will be central to our economy in this century. What Stephen Carter is setting out in his Digital Britain work is how we get broadband to practically every home and business in the UK in just the next few years.

What happened at Lindsey Refinery last month is a reminder that alongside a commitment to mobility and fair treatment for workers in the EU, we must also ensure that British workers possess the complex skills and productivity that they will need to compete in the years ahead. John Denham is working on precisely this kind of strategic skills strategy.

We depend on the UK being the best place in the world to build innovative companies, and that means looking at the capacity of UK financial markets to produce the equity they need, especially in the regions and in a tough credit market. It's with that in mind that we have been developing ideas for a new version of the ICFC - the body that became 3i - to leverage long-term capital for growing firms. This could build on the £75million Capital for Enterprise Fund launched by the government, for which we have now recruited fund managers to channel risk capital to innovative startups through the downturn.

We've regulated in this country to drive the demand for low carbon goods and services. Now we need to think about supply, making the UK the best place in the world to build a low carbon business, develop civil nuclear technology or recruit expertise in energy efficiency or low carbon finance. On Friday, Ed Miliband and I will start consulting on how we do this through a low carbon industrial strategy.

I've called these important strands of work "industrial activism". What drives my thinking is a simple challenge: to use the strategic role of government better. We've too often devalued our ability to build a stronger private sector through activist public policy. Deferred to private sector expertise without the balancing assumption that government must have a parallel expertise in shaping the world in which private enterprise operates. We've been so spooked - often rightly - by the very idea of 'state intervention' that we've been too cautious in asking what more we can do as a country to equip ourselves to compete in a global economy and to bring high value jobs here. Across government, in everything we do.

We should never make a major regulatory or public procurement decision in the UK - on transport, energy or anything else - without asking whether there are supply chain opportunities for UK-based companies to compete for. And if there are, and if it makes long term economic sense for the UK to compete for them, we have to equip ourselves to do so. Without closing our markets and while safeguarding the taxpayer's long term value for money. Others ask these questions routinely. In Britain, we don't ask them enough. In my view, this is part of the social contract for a globalised economy. Unless we demonstrate the domestic advantages of an open global economy, we will lose public support for globalization at home.

Resilience and Renewal

The Britain that went into this downturn will not be the one that comes out of it. As I said, as well as reflecting on what needs to be done differently, we need to recognise the strengths we have built over the last decade - including here in the City. It is important to recognize that whatever went wrong in some City institutions, the legal and commercial expertise that has developed here has not somehow been wiped away in the last year. They will remain central to the UK economy in the decades ahead, just as they have been for centuries. The government recognizes that strength, recognizes that it must be nurtured and reinforced.

We have a private enterprise culture in the UK that recognises the need to reward entrepreneurship, innovation and hard work - that provide opportunities for individuals to succeed, regardless of where they come from. We're successful because of our strong commitment to Britain's economic place in the EU, which is the context for everything we do to equip the UK for globalization. We need a Europe with a competitive Single Market at its heart, that is open to trade and investment. The case for industrial activism I have set out tonight applies as much to the EU as a whole as it does to the UK, precisely because it is not economic nationalism. It is about tearing down barriers to European companies competing with the best, not putting up barriers to keep others out. Our new industrial activism will never become a new economic nationalism.

But we are, at some level, aware of the need for a new balance. A new sense of public responsibility and of the public interest in Britain. A sense that the same basic rules of responsibility and merit apply across the board. That a dynamic capitalist economy is not an end itself but a means to a stronger and more cohesive and prosperous society. A capitalism that builds for the long term as well as rewarding in the short term. Is that the definition of a responsible capitalism? I think it is.

Banks are already feeling this. Customers will expect a different approach, including a clear recognition of the custodial function of banking in the economy. Because it's a basic reality that a modern industrial economy is built not on money as such, but on the stable and reliable availability of credit. As someone who has spent the last few months defending to angry businesses the urgent and unique claim of the banking sector on the taxpayer's support, I can tell you that the demand for a sounder, more sober model of banking will shape the expectations of a generation of businesses. Especially small firms.

People will inevitably ask why the 'bonus culture' in some parts of the financial services sector appears to have led to behaviour that destroyed value rather than creating it. The habits of excessive, unmerited rewards for some at the top do not sit well with the very tough realities we are now working in. We also have to understand how financial innovation - which is a good thing in itself - got so far ahead of not just regulators, but also many of the companies that traded in complex financial instruments. We recognize now that the leverage that looked so attractive to individual institutions was toxic when it turned into a general feature of the financial system.

There's probably a proverb somewhere that says a crisis should not be wasted. Well, this is ours. The Basel rules need to be revised, and we need to renew the case for global accounting standards. We need new approaches to regulation on risk taking and the rewards attached to it. The financial system is now global, while regulation and oversight remain national and local. We used to talk about light touch: now it's going to be about the right touch. What needs to happen in London at the G20 Summit is the first iteration of a new grand bargain that finally adapts the machinery of global economic governance to a new global economy. These are questions for shareholders and boards, regulators, politicians and ultimately, voters. I agree, incidentally, Lord Mayor with your point about the tasks of Boards, and the need to reflect on their vital supervisory role.

Conclusion: Britain fights its way back

A recession is more complicated than just two consecutive quarters of negative growth. A recession is, in part, the economic expression of our collective confidence to invest or spend. Our confidence in the future. And how we see ourselves in the future. We are of course spending most of every day on questions of everyday survival for banks and businesses. That is how it should be. But at the same time we are putting in place the bridges to our economic future. Not just recovering, but re-building. And not just rebuilding, but rebuilding better and stronger. Setting out a picture of Britain's industrial future that speaks to the biggest City corporate as much as the smallest start-up in the Midlands. Setting out how Britain fights its way back. We can do so. And we must. And, if we pull together as a nation, we will.

Certificate in Operations Management Course

Tue, 17 Mar 2009 00:00:00 GMT

It is more crucial than ever before to cut costs, reduce inventory and improve efficiency. The IOM certificate and diploma courses show you how to do this, and also help raise morale by giving a recognised qualification to successful participants.

Dawson Berkeley & Partners Ltd run courses for small groups (up to 8) in a friendly atmosphere, and are disappointed if people do not make a direct improvement to their company’s cash flow as a result.

A new course leading to the Certificate in Operations Management, led by Tony Wild, starts on 6 May. It runs once a fortnight to cause least disruption in the workplace. If you live in the north-west, or indeed within a hundred or two miles, you will be very welcome. (Current courses have students from as far afield as Hertfordshire, North Wales, the Midlands and Humberside!) Please email dawsonberkeley@btinternet.com for details.

Half price membership opportunity for existing IOM members!

Fri, 13 Feb 2009 00:00:00 GMT

The Chartered Institute of Logistics and Transport

Half price membership opportunity for existing IOM members!

As you may be aware, towards the end of 2007 The Institute of Operations Management joined with The Chartered Institute of Logistics and Transport to become a membership body within CILT(UK).

The IOM continues to operate as an independent Institute within an Institute with dedicated and focused qualifications, training programmes, membership categories, events and activities designed to appeal to the specific needs of technology and supply chain professionals.

The complementary nature of CILT activities in the fields of manufacturing logistics, procurement, outsourcing and supply chain management, coupled with IOM’s strength across the range of business process design and operation and upstream supply chain management activities has enabled us to develop this ideal partnership.

With this in mind, we believe that you could benefit from the specific opportunities that membership of the CILT would afford you. As a result, we are delighted to offer you the opportunity to complement your current IOM membership by joining the CILT, for an initial first year, at a discount of 50%!

This means that your CILT membership will cost less than £65 for the first year, for full Member – MILT – status.

The CILT provides a range of career enhancing and time saving benefits as well as the information you need to ensure that you operate at the highest level. For further information on how the CILT can support you in your career visit the web site.

To secure your discounted CILT membership or if you have any queries regarding this exclusive offer, please contact us on 01536 740105 or email members@iomnet.org.uk

Leonie Edwards
Manager – IOM

Make 'Business Health Check' a New Year's resolution

Tue, 06 Jan 2009 00:00:00 GMT

Firms are being urged to start the New Year with a 'business MOT' to ensure they're in good shape to ride out the current economic downturn.

More than 10,000 companies in England have already undergone a Business Health Check since the service, which provides free personalised support and confidential advice, was launched in October 2008.

Each check, provided by the Government's Business Link service, ensures that firms are maximising their cash flow, marketing and business planning during the current economic climate.

Qualified Business Link experts help firms draw up tailor made action plans designed to ensure that companies are able to cope with the effects of the economic downturn. Business Link also provides a follow-up monitoring service for companies to ensure that the plan is working for them.

Secretary of State for Business Lord Mandelson said:

"In the current economic climate it's more important than ever for small businesses to take action before they find themselves in difficulties. So there's no better way for companies to start the New Year than with a free Business Health Check looking at issues such as maintaining cash flow.

"Larger firms can afford advisers and accountants. We want to ensure that small businesses, with fewer employees and limited resources, benefit from the type of advice and support they need to plan for the times ahead and to come out stronger on the other side."

Business Link Advisor Ganesh Selvarajah added:

"Smart businesses review their performance regularly to look for early signs of any issues that will affect their profitability.

"The Health Checks are a really effective way of doing this. Clients find that they give them an excellent overview of the strengths they need to build on as well as identifying potential problems, such as a cash flow."

Notes:

1. Business Link is the information, advice and support service for businesses, funded by the Government. For more details go to www.businesslink.gov.uk/businesshelp or call the National Help Line: 0845 600 9 006.

2. The Business Health Checks are part of a range of support for businesses announced in October 2008, including prioritised training for SMEs under the Train To Gain initiative and cash flow guides produced by the Institute of Credit Management.

3. At the Pre-Budget Report in November the Government announced a package of support including guarantee facilities to support £2bn of bank lending to small firms and a £50 million fund to convert businesses' debts into equity.

Department for Business, Enterprise & Regulatory Reform 7th Floor, 1 Victoria Street, London SW1H 0ET

Public enquiries: +44 (0)20 7215 5000. Textphone: +44 (0)20 7215 6740 (for those with hearing impairment). Press Office fax: +44 (0)20 7222 4382. Web site: www.berr.gov.uk

New Online Membership Benefits 2009

Tue, 06 Jan 2009 00:00:00 GMT

Your Institute is delighted to offer members access to two exciting new services:

The Knowledge Centre

Whatever information you are searching for, as an Institute member you now have access to the incredible resources of The Knowledge Centre. You can find the latest thinking on today’s hot topics, pick the brains of industry experts by reading what they are writing about now, go back in
time for the historical perspective, take a peek at what your competitors are up to, find a supplier or expand your customer base, glean information to put in a report or dissertation, access resources for your CPD or help with your studies, check the latest legislation covering your operation, and dip into major newspapers around the world to discover what’s hitting the headlines anywhere from Albania to Zimbabwe.

Careers Service - Coming Soon!

You might have been made redundant and need some help getting back into work quickly, or perhaps you are looking to change your career. Maybe you are seeking promotion, or you might simply wish to update your CV. Whatever your circumstances, the IOM Online Careers Service is the perfect place to start.

As an Institute member, not only will you gain access to a specialist web site offering a vast range of invaluable careers advice and examples to get you started, but you will also have unlimited telephone and email access to a dedicated careers consultant! The web site itself provides easy to use examples of the best – and worst – CVs, examples of covering letters, audio recordings of jobseekers being interviewed, information and guidance for you to download, and a career assessment tool that will help analyse your work preferences and match them to your current or preferred career.

Click here to view new Membership Benefits leaflet in PDF format.

Technology Strategy Board to refocus Knowledge Transfer Networks

Tue, 06 Jan 2009 00:00:00 GMT

Review confirms value of networks for sharing knowledge and accelerating innovation
Coverage of business and technology areas by individual networks to be revised; existing communities will continue to be served
Call for more businesses to join knowledge transfer networks to speed up innovation

Following a major review, the Technology Strategy Board is to refocus the work of their Knowledge Transfer Networks (KTNs), which bring together people from business, universities and research organisations to stimulate innovation through knowledge exchange.

The changes will see a revision of the coverage of business and technology sectors, creating a more targeted, comprehensive and accessible range of network resources to help accelerate innovation.

The comprehensive review, which obtained views from 2,100 KTN users and R&D intensive businesses, strongly confirmed the value of the networks. 75% of business respondents rated KTN services as effective or highly effective. Over 50% have developed, or are developing, new R&D or commercial relationships with people met through a KTN and 25% have made changes to their innovation activities as a result of their engagement.

The most highly rated functions of KTNs, according to the survey, are monitoring and reporting on technologies, applications and markets; providing high quality networking opportunities; and identifying and prioritising key innovation-related issues and challenges.

The review did however identify some areas where networks overlapped, and some where there is poor provision and a good opportunity to develop new networks.

David Way, Director of Knowledge Exchange and Special Projects at the Technology Strategy Board, said: “We were very pleased to have the value and importance of Knowledge Transfer Networks confirmed by this review. However it also identified some areas of overlap and some areas where there are gaps. This is why we are refocusing the portfolio to build on the successes, at the same time aligning the KTNs more closely with the innovation priorities which we have identified in our strategic plan. We will also increase the support the KTNs give to international activities, recognising the increasingly global nature of innovation and business in general”

David Way added: “While the number of formal networks will reduce from the current 25 to around 15, all existing knowledge exchange communities, which have over 45,000 members, will continue to be supported within the new structure. We are also planning to establish new KTNs in some areas, for example financial services and energy generation and supply.”

The Technology Strategy Board would also like to see a great increase in the number of individuals and businesses who use and are part of a KTN. “The feedback from existing business members of KTNs is very positive” David Way said. “We now want to roll these benefits out through UK business as widely as possible. I would encourage every technology-enabled business to find out more about how KTNs can help them to innovate.”

The review also highlighted the strong benefits brought to the KTN programme through links with a wide range of partners. KTNs engage with trade associations, technology providers, research councils, Regional Development Agencies and the Devolved Administrations to deliver benefits to businesses of all sizes. The Technology Strategy Board will use its own links to strengthen these bonds where possible.

Notes:

1. The review of KTNs was informed by a study carried out on behalf of the Technology Strategy Board by Technopolis Group between May and August 2008.

2. The Technology Strategy Board is a business-led executive non-departmental public body, established by the government. Its role is to promote and support research into, and development and exploitation of, technology and innovation for the benefit of UK business, in order to increase economic growth and improve the quality of life. It is sponsored by the Department for Innovation, Universities and Skills (DIUS). For further information please visit www.innovateuk.org

3. Knowledge Transfer Networks (KTNs) are national networks in specific fields of technology or business application, which bring together people from businesses, universities, research, finance, the public sector and technology organisations to stimulate innovation through knowledge exchange. Funded primarily by the Technology Strategy Board, their activities play an increasingly important role in the development of the Government's technology strategy, and help to feed and drive the Collaborative Research & Development Programme and other innovation interventions. For further information please see www.ktnetworks.co.uk

Demand for supply chain managers 'to soar in 2009'

Tue, 06 Jan 2009 00:00:00 GMT

Supply chain managers will be among the most in demand people in 2009 as companies target efficiency savings to head off the recession, according to an industry professional.

Wayne Brophy believes demand for supply chain professionals, once the preserve of large multi-site manufacturing organisations, is growing because even smaller companies are realising it as one of the most effective ways of increasing profit in a recession.

Wayne, managing director of Cast UK, a professional recruitment consultancy for the procurement, supply chain and logistics sector, is predicting that supply chain professionals will become one of the biggest targets of the global HR market.

He said: “In the boom times there are a lot of companies that don’t make supply chain efficiencies a key priority because they are busy making money. But in a recession having an efficient, well-managed and structured supply chain is one of the most effective ways of increasing and protecting profitability.

“Over the last 12-months we have seen companies putting far more emphasis on managing the supply chain, with many creating dedicated positions for supply chain directors and managers where they did not have them before.

“Based on our observations and data, supply chain roles will be a big growth area in 2009 as the UK heads deeper into recession. Businesses are asking themselves how they can increase profits when nobody is increasing their spending. Reducing supply costs puts money straight onto the bottom line and is an obvious answer.”

Cast UK works nationally specialising in recruitment for procurement, supply chain and logistics disciplines working with some of the UK’s biggest companies.

Realising value from a Chief Information Officer

Tue, 06 Jan 2009 00:00:00 GMT

The information age may be upon us, but the value of information has yet to be fully exploited by British companies. Though the majority of UK companies have an IT director – too few have a Chief Information Officer (CIO) on the senior management team. As a consequence, too few companies are using their information assets to power innovation, strategy and growth.

According to a new report from Cranfield School of Management and Deloitte the Chief Information Officer should be playing a central role, ensuring information underpins business strategy; but the study finds that the role of a CIO is ill-defined, confused, with poor understanding of its scope and many CIOs feel perpetually out of the loop. This lack of clarity extends to CIOs themselves.

Realising value from a CIO: navigating the silicon ceiling looks at the nature and dynamics of the role of the CIO. It examines how organisations can successfully align the CIO role with their evolving business.

The research revealed that the role of a CIO is particularly sensitive to the precise context and needs of an organisation. Tensions arise between CIOs and their peers when the CIO is out of sync with these evolving business needs. Professor Chris Edwards from Cranfield School of Management explains: “The role of the CIO is transitory; it has a clear beginning, middle and end. Our research has identified five states of information and technology leadership, only three of which will require a CIO. It is critical that the organisation identifies and deploys the ‘appropriate’ CIO type for their current need. Frustration and confusion occur in situations where an ‘inappropriate’ CIO type is deployed.”

The report argues that the career path of the CIO is not linear, and the CIO’s detailed IT knowledge is not necessarily a prerequisite to success. “Far more important will be their ability to lead innovation, drive change, develop information awareness and expand it across the broader organisation,” believes Professor Chris Edwards from Cranfield School of Management.

The research analysed the role of the CIO from a new perspective by drawing on the views of CEOs, investors, analysts, consultants, industry commentators and CIOs themselves. The findings suggest that organisations should continually review the information and technology needs of their business and assess the type of CIO needed to generate value - there is no ‘one size fits all’ CIO.

David Tansley, a partner in Deloitte’s consulting practice who jointly led the research, explains the growing importance of the role of the CIO: “Vast volumes of data are generated by companies every day. Many of them simply do not realise the value of the data that they are sitting on. An opportunity exists now for technology to maximise the value of that data. Those that leverage the value of information will have a distinct advantage, particularly in the current economic climate. But having clarity on the role of the individual that will lead that endeavour is an absolutely essential first step. Without a CIO, the chances of succeeding are extremely slim.”

The report concludes that the ultimate objective of the CIO’s role is to create an environment in which information and technology are so intimately and fundamentally bound to every aspect of the business that the need for a CIO diminishes.

“In many respects, the best CIOs will be like good regulators. They will intervene, make structural changes and then find that as a result, they are no longer needed. But in many respects, that’s the real opportunity – because as business becomes more information-centric, CIOs will have the opportunity to move on to other senior management roles,” said David Tansley.

Other key findings of the report include:

Even though the CIO role has existed for well over a decade, there is still considerable confusion as to its purpose and contribution which results in companies not leveraging IT to its full potential.
While there appears to be a trend towards greater understanding and appreciation of information and technology within the business, action is required in terms of appointing and empowering an appropriate CIO.

Companies frequently view IT as a back-office function resulting in key strategic decisions being made without the involvement of the CIO (or equivalent).

Where CIOs are effective tends to be in organisations that allow them to use IT as an important strategic driver. Where they are not effective is typically where the CIO is seen as little more than a glorified IT Director.

Professionalism pays

Tue, 06 Jan 2009 00:00:00 GMT

New, independent economic impact analysis reveals that individuals with professional qualifications and membership of organisations, such as IOM and CILT, stand to gain £152,000 in additional earnings over the course of their career.

Commissioned by eight of the UK's leading professional bodies - including CILT, the Chartered Management Institute (CMI) and the Chartered Institute for Personnel & Development (CIPD) – the study is based on analysis of data for six consecutive quarters of the Labour Force Survey. Key findings include:

Boost in earnings: the estimated lifetime economic benefit associated with holding professional qualifications has been valued at £81,000. The study also shows how membership of a professional body can result in additional earnings of up to £71,000 in today's money terms
Revenue driver: based on today's taxation levels the estimated additional lifetime tax revenue contributed by an individual with professional qualifications and membership currently stands at £53,000
Employer value: individuals with professional qualifications and membership enjoy a 9 per cent increase in the probability of being employed because of the transferable skills on offer, according to the study. This figure, coupled with the 37 per cent wage premium received by professionally qualified staff demonstrates the high value employers place on the skills developed by professional bodies

The report shows that professional training and development is a key lever of support for the Government's Skills Strategy. Together, the eight Institutes deliver over 50,000 qualifications per year and, in line with Government plans to "ensure employers have the right skills to support the success of their business", the majority of ‘students' undertake qualifications while remaining in employment.

Speaking at the launch of the report at the Houses of Parliament today, Steve Agg, Chief Executive of CILT (UK) said: ‘‘Professional bodies are here to provide learning and development opportunities for everyone and, with our understanding of the needs of our respective professions we are a unique resource which government should embrace in working to skill the nation's workforce'.
The report also highlights how professional qualifications are ‘open access', ensuring that individuals are able to build transferable skills no matter what their previous qualification level has been. By demonstrating that professional qualifications are undertaken across a range of age groups, and are split evenly by gender, the study shatters the myth that professionalism is elitist.

Against this backdrop, the eight professional bodies are collectively calling for the creation of a Professional Skills Council. The aim is to create greater value for the UK Commission for Education & Skills by raising demand for professional and higher-level skills across the 25 Sector Skills Councils and identifying gaps and shortages of professional skills across a range of industries.

Click here to view the full report…

Technology Strategy Board to drive Britain’s green motoring revolution

Mon, 03 Nov 2008 00:00:00 GMT

100 ultra low carbon demonstration vehicles to be on roads by end of 2009
£10m demonstration will show benefits of new and emerging low carbon technology in real-world situations.
Electrification of road transport, decarbonisation of road vehicles and academic-led research into new low carbon vehicle technology to receive £20 million funding boost

The Technology Strategy Board has unveiled details of a £10 million investment plan, co-funded by the Department for Transport, which aims to see up to 100 innovative ultra low carbon demonstration vehicles on Britain’s roads by the end of next year. This is one of the initiatives announced by the Government to encourage a mass market in electric and hybrid cars.
The ultra low carbon vehicle demonstration competition will see the 100 innovative cars on the road in several locations around the UK and, through real-world situations, will show the benefits to be gained by using new and emerging low carbon vehicle technology.

Commenting on the eve of the UK National Low Carbon Vehicle Event at Millbrook, Bedford in October, hosted by Cenex (the UK’s Centre of Excellence for low carbon and fuel cell technologies), the Technology Strategy Board’s Chief Executive, Iain Gray, said:

“Low carbon vehicle technology is exciting, practical and, most importantly, real. Such vehicles are already on our roads and as the technology continues to improve rapidly, they will only become more effective and more widely used.

“Low carbon vehicles offer the combined advantages of reducing our reliance on oil and reducing emissions. The challenge now is to speed up development of this technology while delivering the benefits to UK business - which is why the Technology Strategy Board is delighted to announce a further £30m of investment in the research, development and demonstration of electric and low carbon vehicles.”

The demonstrator and research & development competitions are the latest initiatives from the Technology Strategy Board’s Low Carbon Vehicle Innovation Platform. The three further research and development activities will cover:

- Electrification of road transport (up to £10 million)
- Technologies to decarbonise road vehicles (approx £7 million)
- University-led research into lower-carbon vehicle technology (£3 million), funded by the
Engineering and Physical Sciences Research Council (EPSRC).

The Technology Strategy Board will also work closely with the Energy Technologies Institute, which will hold a stakeholder workshop in December to develop a second wave of low carbon vehicle demonstration activity. This builds on the Technology Strategy Board’s early pilots and will focus on understanding the requirements of the charging infrastructure.

UK businesses hold steady despite economic turbulence

Mon, 03 Nov 2008 00:00:00 GMT

Equifax Business Failures Report reveals levelling out in firms going bust from Quarter 1 to Quarter 3 2008

Leading business information provider, Equifax, has released its latest Business Failures Report. Not surprisingly, there are increases in the number of businesses going bust in some sectors, but the overall picture for the year to date suggests that other sectors are faring better. The worst hit was the Manufacturing sector, which saw a 13.8% increase in the number of businesses failing in Quarter 3, compared to Quarter 1. However, the Services and Wholesale sectors both saw failures drop by 4.2% and 2.6% respectively in Quarter 3, compared to the beginning of the year.

“Whilst there is clearly immense pressure on businesses with increased costs all-round, it appears that some sectors have been taking the right precautions to manage cashflow and avoid the risk of bad debt and this is enabling them to stay solvent”, confirmed Neil Munroe, External Affairs Director, Equifax.

The Construction and Transport & Communications industries continued to struggle in the difficult financial climate with failures up 11.7% and 11.9% in Quarter 3, compared to the first Quarter of 2008. “Although there are increases in these sectors, the trend through this year is pretty steady”, continued Neil Munroe. “And significantly, failures in the Retail sector only increased by 2.8% in Quarter 3 compared to Quarter 1.

“Indeed, the overall increase across all sectors for Quarter 3 is just 3.2% compared to the beginning of the year, but the 0.5% cut in interest rates will be a welcome lifeline for businesses in all sectors as the conditions remain tough.”

Looking at the regional picture, the North East appears to be suffering the most with a 23.4% increase in failures in Quarter 3 compared to Quarter 1. However, the region saw an only 1.9% rise in Quarter 3 compared to Quarter 2. Wales saw an increase of 14.7% in the third Quarter compared to the beginning of 2008. However, between Quarter 2 and 3 business failures in the Principality only increased by 2.9%, suggesting a slowdown in failures towards the end of the year.

The West Midlands and the South East saw Quarter 3 failures go up by 10% and 10.6% respectively, compared to Quarter 1, while Yorkshire & Humberside only saw a 7% increase.

However, on the Eastern side of the country things appeared to be slightly more stable. The East Midlands and East England saw failures drop by 1.3% and 4% respectively in Quarter 3 when compared to Quarter 1. The prospects in Scotland also look positive with just a 0.3% rise when comparing the start of the year with the third quarter.

Other regions faring well in Quarter 3, compared to Quarter 1 include London (+2.2%), the South West (4.6%) and the North West (5.7%), all experiencing fairly small increases.

Munroe concludes, “Although business failures continue to rise and there are a number of external factors that can hit even the most well prepared business, there are indications that firms in some sectors are taking the right precautions to protect themselves from some of the risks in tough trading conditions. Businesses need to continue to use rigorous credit checks, alongside ongoing monitoring of the financial status of their customers and suppliers. By operating best practice and harnessing the power of the latest risk management solutions, firms can minimise the threat of bad debt and secure the future of their business.”

Equifax 2008 UK Business Failures Report – Quarterly Trends Comparison

The following tables show the trends in business failures for each Quarter of 2008

SECTORS

Increase or decrease in failures through 2008

	Quarter 2 compared to Quarter 1	Quarter 3 compared to Quarter 2	Quarter 3 compared to Quarter 1
Construction	-2.7%	+14.8%	+11.7%
Manufacturing	-2%	+16.1%	+13.8%
Wholesale	+1.5%	-4%	-2.6%
Services	-5.3%	+1.2%	-4.2%
Retail	-4.6%	+7.7%	+2.8%
Transport & Communications	-.08%	+12.8%	+11.9%
TOTAL PER QUARTER	-3.6%	+7.1%	+3.2%

REGIONS
Increase or decrease in failures through 2008

	Quarter 2 compared to Quarter 1	Quarter 3 compared to Quarter 2	Quarter 3 compared to Quarter 1
East Midlands	-0.5%	0.8%	-1.3%
East England	+2.8%	-17.9%	-4%
London	-3.4%	+5.9%	+2.2%
North East	+21.1%	+1.9%	+23.4%
North West	-1%	+6.8%	+5.7%
Scotland	+6.3%	5.6%	+0.3%
South East	+5.3%	+4.5%	+10.6%
South West	-4.6%	+9.7%	+4.6%
Wales	+11.5%	+2.9%	+14.7%
West Midlands	-5.3%	+16.2%	+10%
Yorkshire & Humberside	-8.7%	+17.3%	+7%

Employers nurture their talent to save costs

Mon, 03 Nov 2008 00:00:00 GMT

As the economic downturn bites, a new report from Cranfield School of Management, commissioned by learndirect Business, reveals organisations that invest in their staff are best placed to save money (44%); improve staff motivation (33%); and increase employee retention (52%).

The Nurturing Talent report, which is the first piece of work to examine the impact of external recruitment versus developing internal talent, also found employers who make strategic rather than operational staff development decisions, best placed to achieve these benefits. For example, successful organisations are typified by those that use formal training policies to nurture talent (45%). While less successful organisations were more likely to train staff on an ad hoc basis (46%).

However, although the report highlights training and development can have significant benefits such as increased staff motivation and retention, only a third (34%) of employers have a formal training strategy.

The report, which was compiled using responses from 1,189 training and recruitment decision makers, reveals over three quarters of employers (78%) see skills development as more beneficial to their organisation compared to recruiting staff externally.

Dr Emma Parry, Senior Research Fellow, Cranfield School of Management, who authored the report, said: “With training budgets arguably amongst the first to go in a recession, this research demonstrates that growing your own is an effective way for organisations to obtain the skills they need while saving money.

“For employers, the nurturing talent concept means managing and developing employees to achieve business goals. This could include training; employee coaching; staff mentoring; and job enrichment to stretch employees with new tasks.”

Sarah Jones, Chief Executive of Ufi, the organisation responsible for learndirect and learndirect Business, said: “Nurturing staff is a vital strategy for employers, whatever the economic situation although, in tougher times it can become a challenge as other business demands take priority. However, as this research highlights, organisations do not just stop hiring during an economic downturn - they simply work harder to ensure their available resources are allocated more effectively.

“Organisations must focus on nurturing talent if they are to survive, grow and succeed. As a CEO, I know the continuous development and growth of people is inextricably linked to business performance. At Ufi we have a structured process of evaluation and assessment to help ensure employees realise their full potential. Each member of staff has a structured development plan, which is aligned to specific business and individual needs.

“As we’ve seen, the business case for developing staff is compelling. Effective training can reduce staff turnover and absenteeism, improve motivation, increase productivity, help boost and improve customer satisfaction. By focusing resources on nurturing existing talent, organisations can ensure they reap significant rewards.”

To ensure employers can gain access to high quality flexible training opportunities, learndirect Business has developed a dedicated network of highly responsive training centres through which organisations can access online and work-based learning covering a wide range of business issues.

Third-party logistics providers play key role

Sun, 02 Nov 2008 00:00:00 GMT

Third-party logistics providers play key role in integration, sustainability and security of the supply chain

Capgemini, Georgia Institute of Technology, Oracle and DHL release the thirteenth annual Third-Party Logistics Study

Capgemini, one of the world’s foremost providers of consulting, technology and outsourcing services, in cooperation with the Georgia Institute of Technology, Oracle and DHL have released an in-depth study into the current state of logistics outsourcing. The study is based on a survey of 1,644 logistics executives from North America, Europe, Asia Pacific and Latin America and identifies a number of key findings:

Green supply chain initiatives are essential for future business success according to 98% of logistics executives, yet the majority are unwilling to invest any additional funds in the greening of the supply chain.
The theft of material goods continues to be the top security concern. But the changing business environment means that companies must focus more attention on other causes of supply chain disruption from the theft of intellectual capital and natural disasters, to the closure of ports and product tampering.
Underpinning sustainability and security are strong relationships across the different parties in the supply chain achieved through integrated systems and services. Through deliberate efforts to form solid relationships with logistics providers using detailed contracts and metrics, companies can achieve significant cost savings, shorter order cycles, better customer service and improved business efficiency.

Although the survey shows that 3PLs and their users believe the associated costs of creating a more secure, integrated, environmentally-friendly supply chain should be split, there is continued resistance to collaboration and the unspoken assumption that costs will ultimately be carried by the customer.

Green supply chain
Companies are almost unanimous in their belief that green supply chain initiatives, such as local sourcing, are important but there is widespread uncertainty about how to move forward with sustainable supply chain operations. However, companies must begin to act before it is too late. The survey shows that the ‘greening’ of the supply chain will have an increasing impact on network design, transport modes used, selection of equipment, business processes, behaviors and balance sheets. Yet few users rate green capabilities as a deciding factor when choosing 3PL partners. Only 46% of respondents said that the effect of supply chain operations on the environment was a factor considered when selecting a 3PL. Collaboration is key; only when the source and impact of emissions can be accurately assessed can 3PLs and their customers become accountable and will the supply chain become more environmentally friendly.

“3PLs and their customers must be open about expectations and capabilities, if they are to find innovative ways to improve supply chain security and green credentials,” said Hans Hickler, CEO, DHL Global Customer Solutions.“When companies cooperate with 3PLs, there is often limited readiness for both parties to adequately learn current practices, develop joint solutions and share the benefits. But those willing to advance the 3PL-customer relationship beyond today’s sticking points stand to be rewarded with supply chain efficiencies that deliver competitive advantage and customer satisfaction.”

Security in the supply chain
Although 76% of respondents called their 3PLs secure, the survey reveals a gap between 3PL users’ expectations and the current security capabilities of their 3PLs. Companies are becoming increasingly concerned about the costs of meeting compliance mandates designed to enhance supply chain security in the face of terrorist threats. However, by working closely with 3PLs and setting up the right processes, companies can stand to gain considerable benefits that help recoup costs and improve the efficiency of the supply chain.

“Though the overall 3PL picture is similar to last year, it has become clear that green supply chain and supply chain security are increasingly becoming key drivers for success,” said Dennis Wereldsma, Global Leader of Capgemini’s Distribution Sector. “As compliance and regulation around green and security practices becomes increasingly prevalent, 3PLs and users that are greener and can tout their security capabilities can gain significant market advantage.”

Integrated Logistics
The benefits of supply chain collaboration and logistics integration can be huge, but this can only be achieved by putting aside fears over loss of control, visibility, internal competency, and of being too dependent on a third party service provider. However, through the use of comprehensive service level agreements that balance costs and risks and 3PLs investing in their own service offerings, companies will begin to experience the payoffs of working so closely together. By adopting integration-enabling, open standards-based technologies together with 3PLs, companies will be able to increase agility, lower costs and ensure stronger relationships.

Dr. John Langley from the Georgia Institute of Technology reiterates, “The greatest shared challenge is that of forming and growing successful collaborative relationships between users and providers of logistics services. Without a commitment from both sides little progress can be made in the greening of the supply chain and supply chain security. More than three quarters of 3PL users rate consolidation, routing, and mode selection as the top services 3PLs can contribute to green strategies. However, just 31% indicate that their 3PLs currently offer these capabilities.”

Finally, technology is also a high priority for 3PL users. 3PLs continue to outsource web-enabled communications, visibility tools, warehouse/distribution management, and transportation management/execution. However, the IT expectation/performance gap persists, with only 38% of the respondents satisfied with their 3PL providers’ information technology capabilities.

“The continued gap between the capabilities of 3PLs and what is required by their customers is extremely worrying,” said Sundar Swaminathan, Senior Director, Oracle. “IT capabilities are critical to the integration of logistics services provided by 3PLs and the ability to facilitate green supply chains and supply chain security. 3PLs need to simplify and modernize their applications and infrastructure so they can bring new services to market more quickly, increase agility and operational efficiency and deliver service excellence.”

About the 2008 Third Party Logistics Study
A total of 1,644 logistics executives from North America, Europe, Asia Pacific and Latin America participated in the web-based survey. A small number of executives in other areas such as South America and the Middle East also responded although there was no in-depth analysis of these geographies. The findings were then supplemented with the results from in-depth ‘focus interviews’ which were a new feature in this year’s study. Interviews were conducted with industry observers and experts, primarily relating to the special topics identified in this year’s report; integrated service offerings, “green” supply chain, and supply chain security. The Capgemini Accelerated Solutions Environment® (ASE) was also leveraged as a brainstorming setting where executives could collaborate on shared issues. Survey recipients were asked to think of a 3PL as a company that provides one or more logistics services for its clients and customers and a ‘fourth party logistics (4PL) provider’ of logistics services as one that may include more advanced logistics outsourcing services than a conventional 3PL normally would provide.

Retail Think Tank predicts possible year-on-year fall in total sales

Sun, 02 Nov 2008 00:00:00 GMT

Fall in Customer Demand Will Hurt Retailing in Quarter Four

The KPMG/SPSL Retail Think Tank (RTT) – the group of leading industry figures which provides a non-partisan guide to retail sector health – has unveiled its latest Retail Health Index (RHI) ratings for the quarter just ended (quarter three) and its forecast for the next quarter (quarter four). The ratings are based on the Members’ review of a comprehensive industry database and their discussion during its quarterly sitting, in October.

The output chart below tracks the change in retail health quarter-on-quarter and shows that the health of UK retail has slipped for the seventh quarter running and is now at its lowest level since the group first met in early 2006. The base period for the metric (when the index value equals 100) is quarter one 2006.

Retail Health Index 2006 to date

The key points to emerge from the latest meeting, held on October 14th 2008, included:

Looking back, the overall state of health slipped a further three index points to 92 in quarter three, doing slightly better (by one index point) than the panel had predicted three months ago. In effect this meant that the decline in retail health continued at the same rate in quarters two and three, rather than deteriorating any quicker as the RTT had feared in July. As the chart shows, this still represents the poorest state of health that the sector has been in since the RTT first sat in April 2006. However, for the fourth quarter running all three key drivers (demand, margin and costs) contributed negatively to retail health, despite retailers fighting hard to survive and prosper through the long dog days, and extended Sale campaigns, of summer.

Looking forward to quarter four, Members agreed that the outlook looked less favourable, issuing its most pessimistic set of retail health predictions yet. It believes that the state of retail health will deteriorate in the next quarter (quarter four) to an RHI value of 86, representing an accelerating rate of decline over quarter three. Commenting on this trend the RTT said, “Despite the encouragement that quarter three was not quite as bad as we had feared, retail, like other sectors, is in difficulties and most significantly the anticipated further fall in customer demand will hurt retail in quarter four. Depending on what happens to inflation, which looks likely to ease, we are possibly looking at year on year falls in the value of total sales.

The RTT believes that the recent stock market and banking collapse has clearly affected the real world of jobs and consumer spending and shaken financial security, despite the likelihood of more interest rate cuts.

Although the RTT blames the projected worsening rate of decline in health most specifically on a further deterioration in demand and margins, the RTT is at pains to point out that it is not all bad news; it believes costs have now stabilised and retailers will benefit from a slight relief on the costs front in quarter four.

RTT members agreed unanimously that demand will weaken considerably in quarter four, although some are more pessimistic than others. The panel still sees a split between the fortunes of food and non-food retailers with non-food retailers feeling the brunt of weakening demand. However, the panel is in no doubt that the quarter ahead will be tough even for food retailers as volumes will continue on a downward trend. The RTT feels that with the latest unemployment figures showing some 1.7 million out of work, a rise of 164,000 in the three months to August, the biggest rise for seventeen years, fear of unemployment will further hit consumer confidence and levels of demand.

Retailers will suffer even more heavily than in Q3 from declining margins. Last quarter the panel believed many retailers did not needlessly sacrifice margins to stimulate demand and judged it well. However, the fear is that they may now have reached the limit of how far they can push suppliers and still attract customers at prices that protect margins. The RTT believes that non-food retailers, in particular, will have to be more aggressive on price and that the road towards quarter one next year is already red-lit. Last year’s voucher promotions, e-mail campaigns, one-day sales and other, yet to be announced, incentives to buy, are likely to be tactics that are out in force early as we head towards Christmas. The panel also predicts that Christmas 2008 will be a return to basics, becoming more about children than adults, with adults likely to defer buying presents for each other until the Sales.

Inflation, increased staff costs and lay-offs in China will very likely affect the prices that retailers will pay for the goods sourced there, as will the maturity of more favourable currency hedge deals with the pound continuing to be weak against the Euro and to a lesser extent, the Dollar.

Amidst the gloom, though, there is some light for retailers. The RTT expects the growth in, and negative impact on health of, costs will begin to decline in quarter four. The reduction in the price of oil, the renegotiating of many quarterly rent demands to more favourable monthly ones, mainly for new premises, and falling rent inflation as well as an additional 1.5 million square feet of retail space joining the market in quarter three/four will all contribute to a lessening of the effects of costs.

The RTT notes the impact of rising labour costs have now been absorbed although the exodus of many thousands of foreign EU workers back to whence they came may still hold some challenges to retailers’ costs. The panel still feels that better training of staff is, in difficult trading conditions, more important than ever and noted that due to expansion even the leaders in this arena may have been tempted to skip or rationalise their normally stringent training regimes. Such actions, the panel cautions, are likely to be extremely counter productive. The RTT also warns that it is at head office rather than store level that the main threat to jobs exists.

Professor John Dawson of Universities of Edinburgh and Stirling summarises the thoughts of the RTT: “It’s important to state that despite the somewhat negative predictions, we are not harbingers of doom. Yes, some smaller, weaker, just plain unlucky or poorly financed retailers will fail in the coming weeks and months. However, those wily retailers who constantly monitor and modify their entire operations, both online and in store, will come out of this difficult period fitter and stronger. Quarter four will definitely be the quarter where consumers will make or break retail businesses trading through a steepening downturn and those that fail will not only ensure radical changes to our high streets, but leave fallow clearings in the retail forests where new ideas, new products and new retail gurus will flourish.”

The RTT panellists rely on their impressive depth of personal experience and sector knowledge and also considered the following:

Demand

Retail Sales
The average growth in total retail sales across the quarter as measured by the BRC-KPMG Retail Sales Monitor was 1.4%, down from 2.5% in quarter two. However, like-for-like sales fell by 1.1% across the quarter and have been lower than a year ago in six of the past seven months. Food and drink remains the only sector to show sales significantly up on a year ago. Clothing and footwear remain poor and furniture and homewares are well down.

Inflation
The headline Consumer Price Index inflation measure rose to 5.2% in September, the highest since the series began in 1997. Food and electricity and gas were the largest contributors. Food prices were up 12.7% on September 2007 as measured within the CPI. However, the index of shop prices measured by the BRC-Neilson index reported a 3.6% rise in September, with food prices up by 9.1%. This highlights that although there is considerable debate about the true rate of inflation hitting consumers’ pockets, it remains the driver behind any growth seen in total sales. Going forward, we see the impact of inflation beginning to ease.

Consumer confidence
The GFK composite consumer confidence index improved to -32 in September from -36 in August. Although on the face of it this shows an improvement in outlook, this survey was undertaken up to the middle of September when the financial crisis really took hold so will not incorporate any changes in expectations as events have unfolded. GfK undertook an additional survey later on in September, which showed confidence unchanged at -36. People’s expectations are now well below the trough seen in the early 1990’s.

Borrowings
Year on year growth of unsecured borrowings has risen in the last quarter by 6.8% and remains well below the long run average growth of 12%. However, the serviceability of households’ overall debt debt measured through mortgage and unsecured interest and principal debt payments as a percentage of income remains at over 20%, the highest since data began in 1987 (sources: Bank of England and National Statistics and Capital Economcis). The 0.5% interest rate cut is a welcome boost. But not all lenders have reduced standard variable rates by the full 0.5%. And it will take time for lower mortgage payments to feed through into spending anyway.

House prices
House prices have fallen by 12.4% over the year to September, the largest annual rate in the history of the series. (source: Nationwide). Mortgage approvals fell to 32,000 in August, a 70% decrease on a year earlier. From the peak in property values in summer 2007, expectations of 20-30% price falls over the period to the end of 2009, early 2010 are now the norm.

Unemployment
Levels of unemployment have started to creep up over the quarter and are expected to rise significantly as the impact of the global financial crisis hits the real economy. The RTT believes that the fear of unemployment, irrespective of actual unemployment levels, is one of the most significantly factors likely to have a detrimental impact on demand going forward.

Margins
Exchange rates
Over the quarter the $ and Euro strengthened against the £ and ended the quarter at approximately £1.78 and £1.27 respectively. This compares to average rates over £2 for the $ and £1.48 to the Euro in the same quarter of 2007. The impact of sterling’s appreciation will impact clothing retailers most significantly although many will have covered this exposure in the immediate term.

Producer price inflation
Producer price inflation (‘PPI: the prices that retailers pay to manufactures – source ONS) fell to 8.5% in September down from 10% at the end of the previous quarter but still well above the long run trend rate of approximately 2.5%. For Food, PPI inflation has broadly stabilised at around 13.5% in the past two months, and should soon start to drop as the fall in commodity prices feeds through. It therefore appears that we are past the worst and the challenges around needing to pass on price increases while remaining competitive will begin to alleviate.

Producer price inflation – non food
Output prices for non-food have also fallen slightly to 5.4% from 6.7% in June which was the highest since 1982. However, inflation in the prices that retailers pay for goods remains higher than the increase in shop prices, again highlighting the detrimental impact on margins.

Costs
Rent
Retail rents broadly stagnated across the quarter compared to a year earlier based on CBRE’s monthly index. This is down from the annual rate of 1.5% for quarter 2.

Utilities
Annual gas and electricity price inflation rose to 30%and 20% respectively in the quarter, up from 17% (electricity) and 10% (gas) in quarter 2. However, the oil price of $93 at the end of September is down from $140p.b at the end of June (although it remains 16% higher than at the end of September 2007).

People costs
There are no current statistics available for retail average earnings – the latest figures from Thomson Datastream for August show an annual change of 3% including bonuses, slightly below the 3.2% rate for the overall economy. Therefore people-costs will be lower down the agenda of critical issues than it was last year.

Dr Tony Wild MIOM, joins the Logistics Research Network

Tue, 02 Sep 2008 00:00:00 GMT

Professor Martin Christopher, Cranfield School of Management and chairman of the Logistics Research Network (LRN) is pleased to announce that Tony Wild MIOM, Dawson Berkeley & Partners has joined the LRN Committee as the IOM representative.

The LRN, a Forum within The Chartered Institute of Logistics and Transport, aims to bring together academics and practitioners interested in developing, applying and debating the outcomes of supply chain and logistics research.

Each September the LRN organises an Annual Conference and PhD Workshop. The annual Dissertation Awards for PhD, Master and Undergraduate theses are presented at the Conference Dinner. The 2008 Dissertation Awards are sponsored by LCP Consulting Ltd.

It also organises a series of one-day Workshops and is responsible for the academic journal, International Journal of Logistics: Research and Applications which is available at a preferential rate to IOM and CILT members. LRN Forum members also receive a twice-yearly electronic newsletter.

One-day Workshop
Aligning Product Design with the Supply Chain
3rd December 2008, Cranfield School of Management

The workshop explores the interface between product design and the supply chain from a number of perspectives. In particular it will draw on the findings of the recent Cranfield study into the impact of product design on the wider supply chain. The study was a CILT funded seed-corn project. The experiences of two companies will be explored.

For more information about the LRN Workshop, contact: Allison Glandfield. Tel: 01536 740105. Email: Allison Glandfield

For details of the International Journal of Logistics: Research and Applications contact: Lynn Mentiply. Tel: 01536 740105. Email: Lynn Mentiply

Innovation in UK manufacturing to receive further £20 million government investment

Tue, 02 Sep 2008 00:00:00 GMT

Technology Strategy Board to invest in UK manufacturing to help companies maintain and develop their international competitiveness.

Vital new research and development projects will help British manufacturers to stay ahead of international competition, following the announcement today of £20 million of government investment in innovation.

The investments – by the government-sponsored Technology Strategy Board – will support new research that will develop technologies, products and systems incorporating clever technology and know-how.

Commenting on the decision to invest in these projects, Science and Innovation Minister Ian Pearson said: “Manufacturing is a vital sector of the UK economy, accounting for over 50% of our exports. And the UK is the world’s sixth biggest manufacturer. Given the UK’s high-wage economy, future productivity and global competitiveness depend upon our ability to develop high-quality, clever technology and products. Major investment in innovative research and development, such as the twenty million pounds announced today, will enable us to maintain and improve the quality of the UK’s manufacturing capability in key areas such as aerospace, healthcare, energy and recycling.”

Iain Gray, Chief Executive of the Technology Strategy Board, added: “There are some great examples of manufacturing technologies and innovation happening here in the UK. These successful projects reflect the changing nature of manufacturing and we are investing in the UK to enable it to maintain its place as one of the worlds leading manufacturing locations.”

Applications for support were received from a very wide range of industries. The successful projects include research and development in areas such as:
- Carbon-neutral construction products
- Mouldable auto parts from sustainable resources
- Energy efficient and environmentally friendly recycling of composites
- Advanced “health management” of wind turbine transmissions
- Intelligent management of electrical power systems
- The manufacture of sustainable prefabricated housing from renewable materials

The Technology Strategy Board is to invest £19m in these projects, while the Engineering and Physical Sciences Research Council is to support four of the projects with a further £1m investment. Taking into account the matched contributions from the private sector businesses involved, the total value of the research and development projects is in excess of £40m.

The funding of these projects is the latest investment by the Technology Strategy Board and follows their Autumn 2007 call for proposals in a number of innovation and technology areas. Announcements about further investments are likely to be made shortly.

FREE online SAP system analyser

Tue, 02 Sep 2008 00:00:00 GMT

A free tool that logistics service providers can use to instantly analyse their SAP systems has been released on the web.

The Key Performance Indicator (KPI) Analyser has been made available by SAP consultancy West Trax on its web site www.westtrax.com to give companies a sense of the return on investment and potential financial benefits they could obtain from their internal SAP systems.

With SAP recently announcing sharp price increases of its maintenance contracts, more and more companies are being encouraged to revisit their SAP lifecycle plans and costs by measuring the actual usage of their SAP system.

The KPI Analyser provides an indication of the potential savings available to SAP clients to offset this increase. Early indications are that the potential savings will more than cover SAP’s price increase.

The analyser measures businesses' SAP system based upon the responses entered to seven simple questions on its web site. These are then combined with comparable SAP systems on the West Trax database, from which the analyser calculates the potential savings for maintenance and project activities.

The algorithm also takes into consideration industry specific details, the SAP release level, and the age of the SAP installation.

The analyser takes no more than 5 minutes to complete. Every entry is completely anonymous, and no prior registration is required.

To date, West Trax studies have consistently shown that about 95% of all SAP systems have significant scope for improvement, a result that should be a wake-up call to all SAP users.

West Trax CFO, Ken Gorf, comments “The next few years are going to be tough for IT investment decisions. However, a potential source of investment for new projects can be created internally by diverting wasteful resources to better use. This resource can be re-directed within months to projects such as optimising the system, improving the end-user experience, upgrading for new functionality, dealing with compliance challenges, and ensuring that the system remains aligned to the needs of the business.”

West Trax has made over 800 analyses of SAP systems in businesses, across 13 sectors in eight different countries, providing a unique benchmark for users to compare their systems against typical and best performance.

In 2007, West Trax published its second report of KPI’s from its benchmark database – copies of the summary report are still available from Ken Gorf. West Trax also welcomes feedback on the new KPI Analyser.

New IOM Corporate Membership available

Tue, 02 Sep 2008 00:00:00 GMT

Corporate Membership enables organisations worldwide to provide IOM's learning and development opportunities, membership benefits, and professional development tools to a broad spectrum of their employees in a structured and cost effective way.

IOM Corporate Membership is structured into Platinum, Gold and Silver packages, each one designed to allow customisation to fit the unique needs of your organisation, based on a menu of benefits that is tailored to meet your individual requirements.

To discuss your requirements, contact: Daryl Chesney, Business Development Manager. Tel: 01536 740118. Email: Daryl Chesney

Views sought on Waste Lubricating Oil regulations

Tue, 02 Sep 2008 00:00:00 GMT

Providing clarity to industry on how to turn used lubricating oils into non-waste fuel while still protecting the environment is the driving force behind a consultation launched this summer by the Environment Agency and WRAP (Waste & Resources Action Programme).

The consultation, part of the Waste Protocols Project - a Defra-funded business resource efficiency activity – will seek views from industry on how waste lubricating oil is recovered and treated to be sold on as a cheaper alternative to virgin fossil fuels.

Recovered fuel oil varies in quality and is currently classed as waste. This means that businesses that use it need to comply with the emissions standards set out in the Waste Incineration Directive.

The Quality Protocol for the production and use of processed fuel oil (PFO) from waste lubricating oil sets out the standards processed lubricating oils must comply with to be considered a fully recovered material. Recovered fuel oils which meet the requirements of the protocol will no longer subject to the regulatory controls that apply to the handling, transport and application of waste.

Martin Brocklehurst, Head of Environment Protection External Programmes at the Environment Agency, said: “We have worked with industry, government departments and the Energy Institute to develop this Quality Protocol. Compliance with the Protocol should ensure the continued protection of the environment whilst clarifying the regulations for businesses that process waste lubricating oil. PFO users will be given the confidence that the new product derived from waste materials conforms to agreed quality standards.

“We are keen to hear the views of other stakeholders and hope to engage with a wide range of consultees.”

The consultation is open to any interested business or stakeholder group and will be available online until late October. To participate in the public consultation, visit: http://wloqp.dialoguebydesign.net.

Operations Management now available online!

Mon, 18 Aug 2008 00:00:00 GMT

As an Institute member you can now access your Journal anytime, anywhere!

Just click here to view a sample issue, or login to the members’ area to view and search your Journal.

An archive of articles published up to December 2007 is available in the Journal Archive section. Issues published from 2008 onwards will now be available in full through this new facility.

If you are not yet a member, you can browse the sample issue online, or to access the Journal archive and many other member benefits, simply click here to join now.

Tell us what you think - your opinion is important to us!

Tue, 15 Jul 2008 00:00:00 GMT

Tell us what you want!

Although you may have been asked to complete a survey this time last year, there has been a lot of change recently and your Steering Committee is keen to ensure that activity planned is relevant to you. We would like to know what you want from your Institute and membership so that we can try to provide it.

It is a short survey and shouldn’t take more than a few moments to complete. The information you provide will be invaluable in making sure we give you what you want, rather than what we think you want!

So, please make your views heard and complete the survey now!

Technology Strategy Board members receive birthday honours

Wed, 02 Jul 2008 00:00:00 GMT

Chairman Graham Spittle receives CBE; Business Continuity Manager Ray Browne receives OBE

Two members of the Technology Strategy Board have been recognised for their outstanding services to industry in this year’s Birthday Honours List. The Board’s Chairman, Graham Spittle, received a CBE and its Business Continuity Manager, Ray Browne, received an OBE.

Dr Graham Spittle was Chairman of the advisory Technology Strategy Board from 2004 and continued in the position when the organisation was established as an executive non-departmental public body in July 2007. He has been VP Software for UK, Ireland and South Africa with IBM since early 2007 and was previously Vice President, World Wide Integration Development and Director of the IBM Hursley Laboratory. He joined IBM in 1985.

Ray Browne is Business Continuity Manager for the Technology Strategy Board and Deputy Director (Innovation) at the Department for Innovation, Universities and Skills. He began his career as an apprentice in 1960 at the National Physical Laboratory and then held a number of positions at the Department for Trade and Industry (DTI) from 1982. He was instrumental in the launch of the DTI Technology Programme in 2004 and joined the Technology Strategy Board as Business Continuity Manager when it took over responsibility for the programme in July 2007

Commenting on the awards today, the Technology Strategy Board’s Chief Executive, Iain Gray said: “I am delighted that Graham and Ray’s outstanding service has been recognised and would like to congratulate both of them on these well-deserved awards. Both have had distinguished careers and have been instrumental in setting up the current Technology Strategy Board, which is building on a strong foundation of successful programmes and developing the ambition and vision to make the UK a global leader in innovation."

E-procurement made simple

Wed, 02 Jul 2008 00:00:00 GMT

Managers in manufacturing have often despaired of overcoming the intricacies of e-procurement, but now its processes and arcane acronyms, such as EDI, XML, and AS2, have been laid bare in a recently completed series of podcasts by experts in the field, First B2B Limited.

First B2B Managing Director Ian Ford explains: “People involved in e-procurement often speak a different language from those who want to use the service. We have produced the podcasts because we are passionate about communicating the fact that e-procurement has changed significantly since the bad old days when it represented a significant IT and financial commitment for companies who wanted to trade electronically. Modern solutions involve no hardware or software at trading partners’ premises and, when properly run, users will largely be able to forget about the technology that is allowing them seamless exchange of trading documents.”

The podcasts are presented in everyday language and will help listeners understand more about EDI, the technology behind it and how it may enhance their business.

Ford continues: “We have a company packed with experts who can tell you every last detail about the data formats and transports but we are also keen that we have people who can communicate clearly with current and potential clients. That is why we have recently become the first company in the sector to acquire ISO 9001:2000 accreditation, to ensure that we deliver our service in a quality manner which is helpful and transparent to clients. These podcasts are another part of this objective, being designed to banish any misconceptions about e-procurement among potential users and to allow them to understand exactly what the technology can do for them.”

The full list of podcasts is now available at www.FirstB2B.net

New IOM brand launched!

Wed, 02 Jul 2008 00:00:00 GMT

The IOM’s Marketing team has been hard at work developing smart, eye-catching materials for the new IOM brand. We showcased our banner stand at The Logistics Event 08 in Birmingham last week and received some great feedback. The brand is themed around manufacturing and processes in nature with the dual themes of ‘Making something amazing’ – presenting honey bees as nature’s manufacturers; and ‘Making processes flow’ – which focuses on a complex river network flowing into a lake.

The overall result is bright, bold and effective. For national exhibition and event attendance, this is complemented by some clever promotional give aways – tiny jars of IOM-branded honey and IOM-branded bottled water!

Strategic Manufacturing Awards 2008 - Call for entries

Wed, 02 Jul 2008 00:00:00 GMT

Taking place as part of the European Manufacturing Strategies Summit 2008, The Strategic Manufacturing Awards, in conjunction with Manufacturing Business Technology magazine and supported by Manufacturing Insights and the Institute of Engineering and Technology, have been created to reward best practice within Europe’s diverse manufacturing community. Categories have been chosen to reflect the issues currently confronting the manufacturing industry in which companies are striving to break new ground and create success with innovation, sustainability and technology.

The categories for the inaugural Strategic Manufacturing Awards are as follows:

- Green Manufacturing Award

- Innovation Award (sponsored by Microsoft)

- Operational Excellence Award

- Manufacturing IT Awards

- Skills in Manufacturing Award

- Demand-Driven Manufacturer of the Year Award

- Manufacturer of the Year Award

More information can be found at www.manufacturing-awards.com

Winning an accolade at the prestigious Strategic Manufacturing Awards helps towards showing superiority in the marketplace and companies will be clearly aligned with excellence and recognised as a leader in their field – not to mention the marketing and business advantages an award offers.

Our world class judging panel, which includes Dr Christof Spathelf, Head of Manufacturing Overseas at Volkswagen and Pierfrancesco Manenti EMEA Research Director at Manufacturing Insights, will work to identify the best-of-the-best from hundreds of nominees.

Winners will be announced during a gala evening at which attendees will enjoy not only a delicious three course meal but also an unrivalled networking opportunity to mix business with pleasure!

Entry deadline – 6th August 2008

Event Facts and Figures
- European Manufacturing Strategies 2008 is a three day event that is now in its 4th year

- Europe’s leading strategic event for process and discrete manufacturers

- Taking place at the Swissôtel Düsseldorf delegates can choose to: Meet with other attendees or
take pre-arranged meetings with a select group of leading vendors such as ABB, Airbus CIMPA,
Microsoft, Rockwell Automation

- At least 200 end user delegates are expected

Visit www.ems-summit.com or call +44 (0)20 7202 7547 for more information

People will take more risks in tough economic times

Wed, 02 Jul 2008 00:00:00 GMT

People’s appetite for risk-taking in the workplace is likely to increase if the economy enters a recession according to research released today by international leadership development organisation Common Purpose. Over half of all working adults surveyed already consider themselves to be risk-takers and 43% think it will be important to take more risks to help their organisation survive through a recession.

It also found that only 13% of people avoid risk at all costs in their jobs. Common Purpose added that taking calculated risks is very different to acting rashly, that risk is an inseparable part of entrepreneurship and innovation. Through their programmes, Common Purpose has found that senior managers from the private, public and voluntary sectors can effectively come together to use the diversity of their backgrounds and experiences to fertilise each other’s ideas, to avoid pitfalls and to inform their understanding of risk. In today’s complex and rapidly shifting context, it seems that being paralysed by fear into inaction is the biggest risk.

As Julia Middleton, Chief Executive of Common Purpose says: “An economic downturn is not the time to shy away from risks. Leaders need to be brave and bold, and to look in new places to capture the opportunities for growth and innovation. Looking into other people’s worlds is a good place to start.”

Top tips for taking risks during a recession:

Be brave. Take a step into the unknown, within or beyond your existing role, takes courage - courage to start and courage to continue

Taking risks is not as simple as jumping over a hedge without looking first. It involves building an understanding of the issues, challenges, risks and the other stakeholders involved

Don’t focus on your area of specialism to the exclusion of all else. Losing sight of the broader context leaves you open to being blind-sided

Build a diverse network of people and use them to help you formulate your plans - their different views and experiences may enable you to see things in a new light

Keep an eye on the medium and long-term as well as short term fixes: Don’t destroy tomorrow’s value today

For more information, see web site: www.commonpurpose.org.uk

Product developers invited to pitch for free tech software

Tue, 06 May 2008 00:00:00 GMT

A UK software developer is giving product developers the chance to trial the latest embedded technology software for free, helping to take their product to market efficiently by eliminating cost and time delays.

The route to market for high-end tech product developers is often slow and usually very costly, sometimes preventing new products from ever reaching the marketplace. ARTEOS software is an off-the-shelf solution, developed by AEL Micro Systems, and is being offered free to the developer who demonstrates the most inspiring and worthy product.

Developers are invited to pitch their next generation product, prove its technological capability and demonstrate its need within the target market. AEL will choose which developer gets to use ARTEOS software in conjunction with their product, saving years in development and potentially, tens of thousands of pounds.

ARTEOS embedded system code, can be implemented for any next generation product that requires monitoring or remote access. ‘Plug and play’ ARTEOS software is meticulously ‘clean’ and complete code. Iit offers the quality and integrity usually unavailable when outsourcing complex product development from scratch.

In the first instance, developers wishing to pitch their products to AEL should email markhumphreys@aelmicro.com

Success in manufacturing is vital for the UK – Minister speaks at MACH 2008

Tue, 06 May 2008 00:00:00 GMT

Ian Pearson, Minister Science and Innovation, opened MACH 2008 with a speech highlighting the importance of manufacturing to the UK economy and the Government’s continuing commitment to help build the manufacturing industry by working together.

The Minister revealed that the industry is close to his heart, “I was born in the black Country, the heart of the industrial revolution, so manufacturing is coded into my DNA. Success in manufacturing is vital for the UK to be a successful economy and I am delighted to see the world beating UK manufacturing excellence on show at MACH 2008.”

The Minister continued that he wished to see innovation flourish in the economy, particularly high value added businesses: “We [the Government] need to be more innovative using Government procurement to encourage innovation. I would like to say how important manufacturing is to the economy; the industry is constantly changing and evolving.”

The Minister referred to some of the UK’s manufacturing technologies companies exhibiting at MACH praising their commitment to R&D and innovation. The Minister also reinforced the Government’s commitment to skills saying that manufacturing has a part to play in development and training of employees to upgrade their skills.

The Minister’s speech was complimented by Geoff Lloyd who echoed the sentiment of Mr Pearson – that manufacturing is of key importance to the UK, “MACH is not a show, it represents the heartbeat of the industry. The Prime Minister and Cabinet have no more important people to meet and understand than our manufacturers who are vital to the economy. The credit crunch shows the service industry cannot support the bedrock of this country – manufacturing can!”

MACH 2008 received approximately 21% more visitors than the 2006 event, a welcome sign for nearly 500 companies who exhibited at the show.

Despite media talk of an economic downturn and the credit crunch, MACH 2008 bucked the trend with visitors turning out in their thousands to see the latest innovations in manufacturing technology. Over 27,000 people came through the doors during the week-long show organised by the Manufacturing Technologies Association (MTA).

Visitor numbers to MACH 2008 and general feedback on sales at the show would suggest a positive outlook for the industry.

Six-step plan from Forum for the Future

Tue, 06 May 2008 00:00:00 GMT

Six-step plan from Forum for the Future shows business how to succeed within environmental limits

Leading companies and public sector organisations now see sustainability concerns as a key source of both risk and opportunity, but many are not sure how best to respond. A new report from Forum for the Future offers a six-step plan for sustainable success.

Sustainable wealth creation within environmental limits shows how tools, including back-casting and streamlined lifecycle assessment, can be combined - enabling organisations to meet their environmental responsibilities. The report also outlines how sustainability thinking can benefit as a source of innovation, differentiation and in accessing new markets.

At the heart of the report is The Natural Step (TNS) Framework - a unique, science-based approach to sustainable development, which combines a rigorous understanding of natural systems with practical management techniques. The TNS Framework has been used by leading brands and public sector organisations around the world, most recently by ICI Paints with Forum for the Future in the development of its new paint - Ecosure.

Sustainable wealth creation within environmental limits also shows how social concerns and environmental limits can be addressed using the same framework.

Jonathon Porritt, co-author of the report and Founder Director of Forum for the Future, said:

“All wealth is entirely dependent on natural capital to provide resources, deal with wastes, and make our planet habitable. So we have to live within environmental limits or we cannot live at all. On that basis, this paper provides essential learning on the way forward for business.”

The report has been sponsored by Defra, as part of the ‘Sustainable Development Dialogues’, which took place following the 2002 World Summit on Sustainable Development.

For more information contact Alex Johnson at a.johnson@forumforthefuture.org.uk or on 07765253231. The report can be downloaded from www.forumforthefuture.org.uk or directly here.

New sustainability standard for global beverage industry developed

Tue, 06 May 2008 00:00:00 GMT

At the InnoBev Global Soft Drinks Congress in Moscow in April, a groundbreaking new plan – Carbon Action Plan (CAP) – was launched to provide beverage companies, and their suppliers, with a common worldwide scheme for carbon footprint measurement. It also enables audited results to be combined with other environmental information in a consumer-friendly form on product labels.

This innovative approach has been developed as a joint venture between two world-leading industry advisers – food and drink industry consultancy, Zenith International Ltd, and food safety and standards organisation, NSF International. They are working closely with Trucost Plc, an international environmental research provider recognised by Defra (the UK Government's Department for Environment, Food and Rural Affairs).

NSF Vice President of International Operations Koen Bontinck says, "The great advantage of our Carbon Action Plan is that it builds on the work that most companies are already doing. NSF's prime role is to check methodologies of measurement and independently verify company returns and claims."

The Carbon Action Plan (CAP), unlike other schemes, will be global. It will extend carbon footprints right up to the shop shelf and will cover a range of sustainability ratings. Zenith Chairman Richard Hall explained: "For the first time anywhere in the world, we have proposed five key genuine green rating scores to go beyond carbon footprints. These are:

the amount of renewable energy used
the percentage of recycled material in the packaging
the number of water litres used to make 1 litre of product
the extent of a company's carbon reduction in the previous two years and
the amount of carbon emissions verified as having been offset.
The CAP label design is based on ideas used for nutrition labelling so that consumers will understand them more easily. "This is still work in progress, and we would welcome ideas for further improvement, but we believe we have already gone further than any other scheme available so far," Richard Hall added.

The first CAP pilot was undertaken by leading UK bottled water producer Highland Spring. "It has been an exciting challenge for us," remarked its Technical Manager Bryan McCluskey. "We are assessing the environmental impact of our suppliers, including all our fuel and energy use as well as distribution and waste. As a result, we can see our total direct and embedded Green House Gas (GHG) emissions and can break them down by type and size of bottle. The biggest benefit of the CAP scheme is that we can now identify GHG hot spots in our supply chain - by managing them, we will reduce our carbon footprint with certainty."

The Carbon Action Plan will first be implemented across the bottled water industry, and pilots are in the process of being established with leading companies in each continent. Soft drinks will be the next priority and the scheme will then be rolled out to other food and drink sectors.

A new not-for-profit organisation, the Carbon Action Plan Partnership, is being set up to monitor and develop the scheme. Its Chief Executive is Ian Hall, former Chairman of the UK Natural Mineral Water Association.

"We are convinced this is the right direction for companies who are genuinely committed to taking corporate responsibility for the environment,” explained Ian Hall. "On such a vital issue, there should be no half measures. It is a demanding and ambitious plan, but we now have a proven scheme that delivers actionable results. Companies can not only measure their carbon footprint, but plan how to reduce it. Consumers will be able to see these results in the context of wider environmental measurements and, without doubt, this will influence their attitudes and shopping behaviour. Access to an effective environmental reporting scheme is essential if the beverage industry is to demonstrate to customers, employees, shareholders, governments and the media that it is meeting the challenge of global climate change. The CAP Partnership uniquely meets this global need.”

For more information, please visit cappartnership.com or contact Koen Bontinck, NSF Vice President of International Operations, at t + 32 2771 3654, bontinck@nsf.org or f + 32 2 763 0013.

CILT(UK) 2008 Annual General Meeting

Mon, 14 Apr 2008 00:00:00 GMT

Please note, as a membership body within CILT, members (MIOM) and fellows (FIOM) are entitled to attend and vote as detailed below.

Notice is hereby given that: the Annual General Meeting of The Chartered Institute of Logistics and Transport in the UK will be held at The Old Sessions House, Clerkenwell, London EC1R 0NA on Wednesday 14 May 2008.

Commencing at 10.30am to conduct the following business:

As Ordinary Business

1.To consider and if thought fit adopt the Accounts for the year ended 30 September 2007and the reports of the Directors and Auditors.
2. To re-appoint Mazars LLP Auditors and to authorise the Directors to agree their remuneration.

As Special Business

To consider and if thought fit pass the following resolution as a Special Resolution:-
THAT Article 53 of the Articles of Association is replaced by the following new Article 53:
53. The President, who shall be a member, shall be appointed by Council for a term of office which shall be prescribed in the Bye-Laws.The Bye-Laws shall prescribe the timing, criteria and procedure for appointing the President and his successor.

Dated 13 March 2008
By Order of the Board
R J Ebbage, Secretary

Notes:
Members entitled to attend and vote at the Meeting convened by the above Notice are entitled to appoint a proxy to attend and, on a poll vote instead of them. A proxy must be a Member of the Company. All supporting information will be communicated to Members shortly along with a Form of Proxy.

Alternatively, visit web site: www.ciltuk.org.uk

Manufacturing firms lose business due to shortage of bilingual workers

Tue, 11 Mar 2008 00:00:00 GMT

20% of manufacturing companies have lost out on business because staff can’t speak a foreign language
21% of employers in the manufacturing sector would be willing to pay staff more if they had language skills
16% of manufacturing companies would benefit from more foreign language speakers

One in five companies in the manufacturing sector (20%) has lost out on business because their staff cannot speak a foreign language, according to research released recently by the Teach Yourself Business Languages Series.

The independent research conducted by Gfk NOP reveals that 16% of companies in the manufacturing sector feel that they would benefit from a foreign language speaker in their organisation and 23% would actively hire a candidate who could speak a second language over one who couldn’t.

The survey of over 500 UK companies also found that over a fifth (21%) of Manufacturing companies would consider offering employees who speak a foreign language extra incentives, including a higher salary. This is compared to only 6% of construction companies and 7% of companies in the Retail sector.

Sarah Carroll, author of the Teach Yourself Business Languages Series, says: “Globalisation has prompted the demand for foreign language speakers in the UK. As Manufacturing companies begin to operate more within the international community, they must ensure they hire staff with good language skills. It’s encouraging that some Manufacturing companies are beginning to recognise this demand and that they are prepared to offer foreign language speakers a premium salary.
“China is one of the fastest growing global markets and the demand for UK Mandarin Chinese speakers is increasing. Mandarin Chinese is quickly becoming one of the most useful languages to know in business and Spanish may well end up rivaling English as a global business language in the Americas by 2050. Manufacturing businesses need to be aware of this and invest in foreign language speakers so they are able to compete in the global market.”

Norwich Union kick-starts safety campaign with the importance of risk assessment

Tue, 11 Mar 2008 00:00:00 GMT

Norwich Union is launching a 12-month campaign to help small businesses manage their health and safety issues.

“Simply Safety” is a series of one page guides aimed at a broad spectrum of trades including manufacturers, caterers, builders and retailers.

Each guide will be available to download at www.nurs.co.uk and has been designed as a reference tool or to display in workplaces.

The campaign begins by looking at the importance of risk assessments and outlines the key factors to helping keep staff and equipment safe.

“Often viewed as a box ticking exercise, the reality is quite the opposite,” warns Phil Grace, Norwich Union’s casualty risk manager. “Risk assessments are the cornerstone of managing risk in the workplace and the foundation on which employers can make the working environment safe for employees.”

Whilst 63% of the 3,000 firms visited by NURS’ risk advisors in 2007 were judged to have risk assessments that were ‘Good’ or ‘Very Good’, more than a third (37%) had significant improvements to make to ensure the safety of staff, registering ‘Poor’ assessments.

“Businesses should be aware that a risk assessment is a means to an end and the first step in developing a safe working environment. Fitting guards on machinery, installing signage and staff training are all common actions that may need to be taken following a risk assessment.”

However, Grace is keen to highlight a common misconception that only “risky” businesses should conduct a risk assessment. “The reality is that every business should be risk aware, regardless of what it does.

“Apart from the use of sharp knives, most people would not regard a butcher’s shop as a “high risk” business. But this is not the case as proved by a recent accident involving a 15-year old boy who was working in a butcher’s shop and lost part of his arm whilst operating a mincing machine in which a guard had been removed.

“As a result, the owners were fined £18,000 and ordered to pay costs. The manager was also fined and had to pay costs.

“It is a stark warning that safety equipment, in this case the guard, is there for a reason and should be used. At the very least, the business should have had a warning sign by the machine to remind staff to check the guard was in operation and only allowed fully trained staff, over the age of 18, to operate it.” advises Grace.

“A risk assessment survey is a simple process that offers businesses sound risk management advice and should be a fundamental part of a business philosophy that is taken seriously from the very top level of a company.”

International figures suggest UK is regaining lost ground in innovation

Tue, 11 Mar 2008 00:00:00 GMT

The UK and other EU member states are showing signs of fighting back against the tidal wave of innovation and patenting in China and Korea, says the Chartered Institute of Patent Attorneys (CIPA).

According to Matt Dixon, a patent attorney and spokesman for the Institute, figures for 2007 just published by the World Intellectual Property Organisation (WIPO) show that, at 9.1 per cent, the UK had the highest rate of growth in Europe for international patent filings under the Patent Co-operation Treaty (PCT).

“In 2006, the UK lost its position as one of world’s top five centres of innovation for the first time in nearly 30 years,” Matt Dixon said. “WIPO’s figures for that year showed that, in terms of the number of patent applications filed, the UK had dropped to sixth place, behind the US, Japan, Germany, South Korea and France.

“WIPO’s figures for 2007 show that although the UK remains in sixth position, the good news is that its rate of growth for international patent applications has picked up well and is now ahead of major competitors Japan and the USA (both with a growth rate of 2.6 per cent). The UK’s growth rate is also higher than both France (2.1 per cent growth) and Germany (8.4 per cent).

“If this is sustained, we expect to see the UK back as one of the world’s top five innovating economies within three years.”

The CIPA spokesman also pointed out that China’s surge in patenting indicates that the economy there is changing fast. “China is doing today what Japan did 30 years ago,” Matt Dixon continued. “It has moved up to 7th position in the patenting league table and is changing from low-cost ‘copycat’ manufacturing to innovating in its own right. We expect to see this lead to a greater concern for product quality among Chinese manufacturers - which will undoubtedly give rise to some price inflation.

“The UK and the rest of Europe need to keep up the momentum in innovating and patenting to have any hope of remaining competitive in manufacturing. The latest WIPO figures suggest that many companies here have taken that message on board.”

Innovative new technology sought to improve disaster management and ease traffic

Tue, 11 Mar 2008 00:00:00 GMT

Disaster mitigation and response, traffic management, road maintenance and pollution monitoring are some of the diverse areas set to benefit from £10 million investment in research and development by the Technology Strategy Board.

The collection of data from a wide range of sources underpins many applications including traffic management, healthcare, pollution monitoring and building management. Environments that are large-scale, high-density, harsh or unstable make data gathering particularly challenging. Without up-to-date and reliable data, it is difficult to understand or predict the dynamics of the environment. The government-funded Technology Strategy Board is to invest £10 million to encourage British companies to research and develop innovative data-gathering technologies that could be rapidly configured and deployed by users such as the police, fire and rescue services, local authorities, utility companies and many others.

Explaining why the Technology Strategy Board is investing in this area, Chief Executive Iain Gray said: “The ability to gather information in complex or difficult environments is vital for organisations such as the emergency services, transport authorities and power companies. Many UK companies have particular strengths in sensing, instrumentation and imaging technologies, and in telecommunications and intelligent systems. Bringing this expertise together would give the UK the capability to offer complete tracking and monitoring solutions, and to exploit the worldwide demand for such technology.”

The Technology Strategy Board believes that innovative data-gathering technology would improve operating efficiency in many industry and service sectors, such as:

Air, water and soil management
Control and security of utility supply
Traffic management
Road and rail infrastructure maintenance
Buildings maintenance and management
Health monitoring of patients in ambulances
Pollution monitoring
Monitoring and maintenance of civil engineering works
Instrumentation and control in vehicles and planes
Cultural Heritage: environmental management of historic buildings, collections, sites and landscapes.

The Gathering Data in Complex Environment funding competition – part of the Technology Strategy Board's autumn 2007 call for proposals in a number of innovation and technology areas – will stimulate UK companies to develop technologies that can be used successfully in challenging environments to gather data that currently cannot be gathered. The investment will help to accelerate development, bringing the technologies quickly and cost effectively to market.

The Technology Strategy Board’s investment will provide partial funding for winning projects that involve businesses working collaboratively with other businesses and/or with research organisations and academic institutions.

Applicants must register their intention to apply for funding, and submit an outline of their proposal, by 4 April 2008 and the final closing date for applications is 8 May 2008. Further information is available at www.technologyprogramme.org.uk

Centre of Excellence for Project Managers unveiled in Birmingham

Tue, 05 Feb 2008 00:00:00 GMT

The UK’s first centre of excellence for Project Management Practice has been unveiled at Aston Business School in Birmingham.

The £200,000 scheme will bridge the gap between academics and businesses by focusing on the importance of project management to innovation.

Businesses across the West Midlands are set to benefit from the innovative Centre for Project Management Practice.

Many business leaders enjoyed the launch party at Aston Business School last night (Monday, January 28th), which included an activity fair, the chance to invent the device of your dreams and networking opportunities.

The project was funded with a £100,000 Business Engagement grant from the Economic and Social Research Council (ESRC) and match funding by Aston Business School’s collaborators – more than a dozen regional, national and international organisations.

The centre is headed up by ‘poacher turned gamekeeper’ academics who have all been project managers across a range of business sectors in the past.

Centre Director Dr Naomi Brookes, who previously worked in the aerospace industry, said the centre would create some fantastic links between project management knowledge and its practice in industry.

“Project management is a very crucial skill which is required to effectively undertake any form of business innovation,” she said.

“Businesses are finally understanding the importance of project management and at Aston we have a wide range of project management research and expertise available.”

The centre offers a novel opportunity for project managers to ‘swap’ with project managers in other organisations. The Centre will offer free seminar programmes to help project managers understand the range of research available to them, and to help researchers tailor their research to practitioners’ needs.

The first few companies to apply will get a free impact assessment to show how implementing best practice solutions would work in their organisation.

There is also the potential for further funding if it proves a successful scheme in its first year.

David Turner, from West Bromwich Building Society, said the scheme would be perfect for bringing together different industries.

“Some larger companies have their own centres for excellence, but where there are fewer project managers in an organisation, this new centre is ideal,” he said.

Outsourcing - Everything you wanted to know but were too afraid to ask!

Tue, 29 Jan 2008 00:00:00 GMT

Date of Event: Wednesday 27 February 2008
Venue: Cranfield University, Bedfordshire

As organisations focus on their core value streams, outsourcing is popularly seen as a strategic option to use others to carry out non-core activities ranging from facilities management through call centres to their entire fulfilment process. This event brings together outsourcing experts from the UK, offshore and bespoke service operations – providing case studies to understand the challenges and myths of outsourcing through question and debate. Want to know why you shouldn’t outsource or why you should? Register now!

Further Information

Yorkshire showcases its leading lights

Mon, 07 Jan 2008 00:00:00 GMT

Yorkshire’s business community is invited to take part in groundbreaking discussions surrounding the emerging trend in photonic technologies, the use of light to convey information, outside traditional applications such as telecommunications, on the 16th January 2007.

'Harnessing Light…the Futures Bright, the Future’s Photonics' will look at how an increasing number of key sectors in the region are making use of photonics in developing business products and processes that rely on the efficient processing of advanced materials, high precision manufacturing, and accurate measurement and monitoring.

Held at the University of Sheffield and open to those interested in the development of photonics – the advances being made and the use of these in benefiting businesses – the event aims to demonstrate how photonics will affect key regional industries such as medical, automotive, aerospace, defence and manufacturing.

Held by the Yorkshire Science and Technology Network the event will feature two leading experts based at two of Yorkshire's leading universities addressing those present and shedding light on the field which, as Margaret Hodge MBE MP predicts, is expected to be to the 21st century what electronics was to the 20th century.

Professor Animesh Jha, of Leeds University will introduce photonics, the generation and manipulation of light. He comments: "The generation and manipulation of light is a key technology for the future. If the 20th century was the century where the electronics age emerged, then this coming century will be seen as the photonics age."

Also speaking will be Dr Richard Hogg at the University of Sheffield. He adds: "Photonics is incredibly important to businesses across Yorkshire and Humber and we intend to explain why. Businesses should be interested as to how and why photonic technologies can benefit their processes and as a result their bottom line. We have leading academics within leading institutions here in Yorkshire and Humber, ready to collaborate with businesses and build on the success the industry has gained so far".

Jim Farmery, Head of Innovation at Yorkshire Forward comments: "Photonics typically represents between 5% and 20% of the cost of a product in business. As a £20 billion market in the UK today this is one of the most promising and exciting technology fields currently being developed.

“We need to expand on the use of photonics from traditional applications such as data transmission and consumer equipment and make this work for our businesses and our economy going forward."

The Yorkshire Science and Technology Network initiative is funded by Yorkshire Forward and aim's to offer insight into emerging research activities within Yorkshire and Humber's world-class universities, helping regional businesses determine the potential for commercial exploitation.

Event: 'Harnessing Light…the Futures bright, the Futures Photonics'
Date: Wednesday 16th January 2007
Venue: Firth Hall, University of Sheffield
Time: 18.00 hrs to 20.00 hrs

For further information or to attend the event, contact: Leona Thompson, Press Officer. Tel: 0113 3949589. Email: leona.thompson@yorkshire-forward.com

BMW to use automatic surface defect inspection system for sprayed car parts

Mon, 07 Jan 2008 00:00:00 GMT

In modern production, shiny or reflecting surfaces occur frequently, particularly in the automotive industry. Here, quality demands from customers have increased significantly in recent years and so guaranteeing quality has become critical.

The quality control of this type of reflecting surface still takes place largely using manual techniques. Typically, quality control personnel will observe reflected images using fluorescent lamps on the surface to detect defects. This method is expensive and time consuming and provides results that are often difficult to reproduce and are not quantifiable.

In order to detect dents, bulges and other surface defects on a reflecting object – for example, the bonnet of a car – normally the reflected image of the surroundings on the surface are observed. The difference between the surroundings and the reflected image is a measure of the quality of the surface. To apply this process, which occurs naturally in the human brain and eye, to an automatic quality control solution, demands considerable expertise in sensor systems and image processing.

BMW is currently working closely with sensor system specialist Micro-Epsilon, developing and testing complete surface defect detection systems. These systems can operate as stationery test rigs or by using robot arms, which scan multiple inspection points on car body parts, automatically identifying and marking any surface defects. System such as these will enable complete car bodies to be inspected in less than 90 seconds typically. By introducing this at various stopping points in the assembly line, production delays will therefore be avoided.

Franz Hochwimmer, Sales Engineer at Micro-Epsilon’s Systems Division comments: “Since 2005, we’ve been working closely with BMW, initially developing systems to detect surface defects on small, plastic and rubber components on the car. This involved the inspection of components such as car bumpers, mudguards and cylinder heads – but not the complete body of the car. At the end of 2005, Micro-Epsilon supplied a system for BMW’s Dingolfing plant, to automatically detect surface defects on the sides of the car, including front and rear mudguard areas and the doors.”

Micro-Epsilon’s reflectCONTROL ‘deflectometry’ system has been developed to such an extent that it can now be used in industrial production. In order to ensure reproducible, well-structured surroundings – the reflected image of which is to be recorded and evaluated – a striped pattern is shown on a display. Cameras record the reflected image of the display and pass the data to an industrial PC for evaluation. The complete system set-up is mounted on a robot arm. It is then possible to move the system around the object to be inspected, for example, a car body. Alternatively, a stationary installation is also possible, in which the parts are placed on a measuring table.

Hochwimmer continues: “More recently, in 2006, we installed reflectCONTROL on a robot arm, which inspected around 36% of the car body for defects. BMW Dingolfing has evaluating these results now with a view to installing a complete, four-robot arm detection system shortly, which will inspect complete car bodies across two vehicle assembly lines.”

In Micro-Epsilon’s reflectCONTROL system, an LCD with a screen diagonal of up to 40 inches is used as the display. The cameras used are high-resolution CCD cameras. It is therefore possible to measure an area of 60cm x 80cm in one recording. If a larger area has to be measured, the measurement system can simply be positioned at various places along the surface by the robot. Here, the control of the robot is integrated into the system. With this set-up, even very small defects down to 0.5mm can be detected reliably.

In quality assurance, a decision has to be made whether a part is acceptable or defective. In a manual procedure, the worker must reliably recognise different faults in order to be able to make this decision. With a sprayed surface, for example, these may be large dents, inclusions in the spray coating, porosity, grinding and polishing marks, and so on.

With deflectometry, the reflected image recorded by the camera is processed in a computer. During the analysis of the image data, the various faults must be reliably detected and unambiguous decisions made. Whereas a dent causes a slight change in the surface curvature over a comparatively large region, the change of curvature for an inclusion in the spray coating is very large, but is restricted to a very small area. To enable the system to accurately and reliably measure to such a high resolution, the system constantly compares the inspected data with the exact 3D CAD model. Otherwise, for example, openings in the body parts may be erroneously detected as faults.

At BMW’s Dingolfing plant in Germany, in-line stations are planned, which will evaluate the complete car body. To do this, four robots in a measurement station, will acquire approximately 65 to 80 inspection points on the body. The inspection of the complete body will last for between 60 and 80 seconds. If the test rig is positioned at a stopping point in the production line, the process can take place in-line and without introducing delays.

There are many advantages with this fully automated quality control system. The primary factor here is, of course, the dependability and absolutely reproducible decisions as to whether a part is acceptable or defective. For further inspection and possible processing, two marking robots, which mark the defective places, follow the inspection unit. Also, the defects that occur are saved and documented, so that they are available for more thorough analysis later. Consequently, it is possible to generate statistics documenting which types of defect occur and how often. Statistics of this nature can then be used for optimising the processes, leading to improved quality, less scrap and rework costs.

The reflectCONTROL measurement system is also suitable for other applications. The method can be employed anywhere where shiny or reflecting surfaces need to be checked for defects. Examples can be found in the manufacture of clear-coated display covers, glass surfaces or mirrors.

Due to the success of the joint development at BMW, Micro-Epsilon is currently seeking other new development partners. For more details, contact: Micro-Epsilon UK. Tel: 0151 260 9800. Email: info@micro-epsilon.co.uk

Research into technologies to integrate and improve energy efficiency of light s

Mon, 07 Jan 2008 00:00:00 GMT

Research and development into the integration and advancement of more energy efficient lighting, lasers and displays is set to be stimulated through a £10 million investment by the Technology Strategy Board.

The Technology Strategy Board has allocated the money to invest in industry-led, highly innovative collaborative research in areas such as lasers, high brightness LEDs (in-organic and/or organic) and displays.

The Technology Strategy Board’s investment will provide partial funding for winning projects in one or more of these areas, and which involve businesses working collaboratively with other businesses and/or with research organisations and academic institutions.

The Advanced Lighting, Lasers and Displays competition – part of the Technology Strategy Board's autumn 2007 call for proposals in a number of innovation and technology areas – will stimulate UK companies to address the challenges of establishing solutions which improve device efficiency while reducing energy consumption or successfully integrating new and existing component technologies to provide physical proofs of principle. The investment will help to accelerate development, bringing the technologies quickly and cost effectively to market.

Explaining the background to the decision to invest in this area, Technology Strategy Board Chief Executive Iain Gray said: “Lighting accounts for up to 20% of the UK’s power. As we move towards a lower carbon economy, and recognise the need for more efficient energy use, developing advanced light sources becomes increasingly important.”

“The Technology Strategy Board is committed to stimulating the development and deployment of technologies which, while contributing to the UK’s climate change goals, also represent major business opportunities for the UK. Advanced light sources are an area where the UK has both an excellent reputation for world-class research activity and a healthy industrial base with the capability to exploit the results globally.”

Projects are invited that will result in improvements in the overall efficiency with which light is generated, across a range of applications from solid-state lighting through brighter displays to laser systems. Projects that demonstrate system level improvements in light generation/extraction techniques are particularly welcomed in the following areas:

• Electronic, packaging and optical coupling techniques to enable reliable, sustainable, cost-effective, high-brightness, quality, high-efficiency organic and/or inorganic, general and task lighting systems as well as mood lighting, indicator lighting and display lighting systems.
• Research, development and design of advanced diode and non-diode laser systems such as solid-state and fibre lasers, and their innovative use in healthcare, manufacturing and other applications.
• Integration of component technologies to provide physical proofs of principle and demonstrations of practicality. Proposals could involve advances in thermal/power management, packaging technologies, improved optical extraction technologies, driver integration or other techniques.

Applicants must register their intention to apply for funding, and submit an outline of their proposal, by 22nd February 2008 and the final closing date for applications is 27th March 2008. Further information is available at web site: www.technologyprogramme.org.uk

Real time tyre temperature sensors improve racecar performance

Mon, 07 Jan 2008 00:00:00 GMT

A team of researchers at the School of Science and Engineering at University Campus Hamilton (formerly Bell College Glasgow) is using infrared sensors to monitor the temperature of tyres on racing cars in real time around the racing track, enabling set up changes to be made on the car that lead to improved performance on the track.

The research project involves the use of 12 ‘CS Series’ infrared temperature sensors from Micro-Epsilon, three on each wheel of the racing car – on the inside edge, outside edge and centre line. Each sensor is positioned directly above the surface of the tyre, relaying temperature data back to a data logging system for further analyses. One of the attractions of the sensor is its ability to be positioned a significant distance from the tyre, due to its high resolution 10:1 optics. In this case, the sensors are positioned 150mm from the tyre but still measure over a small (15mm) diameter surface area. Competing sensors currently on the market measure over a much wider surface area at a distance of 150mm, which makes tyre temperature measurements very difficult to analyse, particularly if the three measuring spots on the inside edge, outside edge and centre line of the tyre cannot be distinguished from one another in the results data. The CS Series can also be easily integrated into existing racecar bodywork.

David Kennedy, Senior Lecturer at Bell College Glasgow and Head of the Research Project commented: “The research is part of the Product Design with Motorsport course here at the college. We’ve been working on racecar chassis set up for some years now, as part of the Formula Student Competition. The sensors will enable us to improve the performance of the development car, by looking at the temperature of the tyres in real time as an indication of how hard they are working. We are using set-piece manoeuvres as well as laps of the circuit to minimise variability due to the driver.”

Monitoring the temperature of tyres is clearly beneficial for race teams, particularly F1 and other Motorsport engineering teams, as it enables the performance of the car to be improved. Traditionally, engineers would measure the temperature of the tyres after the race or test lap is completed, but this means only average rather than real time temperature readings can be analysed.

As Kennedy pointed out: “Micro-Epsilon demonstrated its CS sensor to us on its stand at the Autosport Engineering Show in January this year. We were impressed by the very fast, almost instantaneous feedback of the infrared CS sensor. We’ve used the sensors connected to a Pi Research data acquisition system, on a car that was driven on a local race track. By analysing the results, we were able to make set up changes to the car to improve the performance. For example, we noticed that the temperature of the outside edge of the right hand front tyre was low during a particular manoeuvre. We therefore made a change to the camber in order to make more efficient use of the tyre and therefore improve the total grip available, increasing the cornering speed.”

Micro-Epsilon’s ‘optris CS’ and ‘optris CSmicro’ sensor series combine high quality and high accuracy with a rugged, high-grade stainless steel housing. The technology was designed specifically for OEM customers, who to date may have avoided infrared measurement due to its relative high cost. The ‘optris CS’ is therefore compact, with an M12 thread and a diameter of 14mm and a length of 87mm. The sensor also comes with integrated electronics, an LED display and a smart sighting support. The ‘optris CS’ is a rugged device, benefiting from coated silicon optics and so can be used in ambient temperatures of up to 75°C, without cooling.

Further features are: a scalable analogue output of 0 – 10 V or 0 – 5 V, adjustable signal processing, short circuit and polarity reversal protection, USB programming interface with software and a wide power range of 5 – 7 or 12 - 28 V DC.

The more recent addition to the range is the ‘optris CSmicro’, which is even more compact than the optris CS and measures just 14mm in diameter by 28mm in length, with an M12 thread. Again, the sensor is housed in stainless steel but the processing electronics are integrated in the sensor cable itself, which facilitates small sensor dimensions. This enables the sensor to be mounted onto Formula One racing cars and used in other high performance motorsport applications.

In addition to providing all the features of the ‘optris CS’, the ‘optris CSmicro’ provides a programmable simultaneous alarm output for fast analysis and switching operations. A very fast response time of 30ms (CS and CSmicro) demonstrates the level of technical innovation these sensors bring to the infrared temperature sensor market. The sensor can also be used in ambient temperatures of up to 120°C without having to cool the sensing head.

For more details, contact: Micro-Epsilon UK. Tel: 0151 260 9800. Email: info@micro-epsilon.co.uk

‘Command and control’ approach to work hinders productivity in manufacturing sec

Mon, 07 Jan 2008 00:00:00 GMT

Figures published recently show that performance levels in workplaces across organisations in the manufacturing sector are suffering as overbearing and dogmatic management practices top the list of management styles. The ‘Quality of Working Life’ report, which questioned 1,511 managers, also found a high rate of sickness and absence levels in organisations exhibiting ‘negative’ management styles.

The report, published by the Chartered Management Institute and Simplyhealth, assessed the impact of differing managerial styles on motivation, health and productivity. Key findings include:

• Tight reins: the most widely experienced management styles in the manufacturing sector are reactive (38 per cent), bureaucratic (32 per cent) and authoritarian (31 per cent). Worryingly, all three have become increasingly common; the top two have increased by 6 per cent since 2004, with authoritarian leadership also rising 5 per cent.

• Index linked: the research shows empowering managerial styles are most associated with growing businesses. More than 1 in 3 (37 per cent) of organisations performing well are cited as having ‘accessible’ management teams, whereas 56 per cent of declining companies exhibit bureaucracy and 25 per cent create a ‘secretive’ environment.

• Sicknote culture: only 1 in 10 respondents said absence increased in organisations with ‘innovative’ and ‘trusting’ cultures. This was in contrast to 45 per cent suggesting sickness rates have gone up where employers were ‘suspicious’.

Jo Causon, Director, Marketing and Corporate Affairs, at the Chartered Management Institute, says: “The effect of management styles on performance can be marked and has a direct bearing on the levels of health, motivation and commitment linking employers and staff. Of course, improving the sense of wellbeing, determination and productivity, is no easy task but one that cannot be ignored. Left alone, it will only serve to reduce morale and lower the quality of working life.”

The findings show that the majority in the manufacturing sector (70 per cent) are motivated by ‘a sense of achievement from reaching organisational goals’. However, it is clear from the research that management style also has a dramatic impact on job satisfaction. For example, the presence of an authoritarian approach depresses enjoyment of work by 27 points, from 71 to 44 per cent. Confidence in senior management teams also declines from 60 to 27 per cent, where the dominant style is bureaucratic.

Des Benjamin, Chief Executive of Simplyhealth, says: “There is increasing pressure to improve competitiveness and efficiency, but this doesn’t have to be about reducing costs. At Simplyhealth we have focused on creating the right environment and the right management behaviours. The result, compared to other organisations surveyed, is that our prevalent management styles are ranked as accessible, empowering and trusting and we’ve been able to cope with more change, with less detrimental effect on our health. Hence you can improve competitiveness and enhance performance by creating a healthy environment rather than reacting to an unhealthy one”.

The report was developed by Professor Les Worrall (University of Wolverhampton Business School) and Professor Cary Cooper (Lancaster University Business School). It is the sixth in a series of reports exploring the quality of working life in the UK. Commenting on the findings, Professor Cooper says: “Against a backdrop of constant change, the relationship between good management practice and the reality of the workplace is intriguing. In an environment dominated by the need to retain the best talent, it is also extremely disappointing to see negative styles prevail in the UK.”

Further details, email: press.office@managers.org.uk Web site: www.managers.org.uk

Leading retailers put their heads together to better serve older age consumers

Mon, 07 Jan 2008 00:00:00 GMT

The Help the Aged engage business network will host the ‘What Older People want and expect from the High Street’ seminar on 17th January in central London W1 (1). Senior representatives from Help the Aged, Marks & Spencer, BT and B&Q will explore how to meet the needs and expectations of the growing number of older age consumers. The focus will be on much-needed age-positive improvements to goods and services and also ways to reach the sought-after 'silver pound'.

BT has been a leading light with its Inclusive Design Toolkit. It’s Director of Communications and Inclusivity, Zoe Arden, will open the presentations by explaining how the Toolkit supports designers and those involved in product development, as well as provide a general guide to inclusive design for businesses.

In early 2008 B&Q will launch a product range that is based on the principles of inclusive design. Elaine Ross, Talent and Diversity Manager, will present the corporate rationale for launching a product range that embraces the requirements of the older consumer.

Marks & Spencer Head of CSR, Mike Barry, will describe Plan A, a five-year, 100-point plan to work with customers and suppliers to, amongst other things, trade ethically and build a healthier nation – issues very much on the agenda of older consumers.

Help the Aged will conclude the presentations by exploring its Older People's Programme. This project uses ‘mystery shoppers’ to review older people's experiences of goods and services. The presentation will outline the findings of the research, recommending much-needed improvements.

There will then be a question and answer session followed by networking opportunities.

Event: ‘What Older People want and expect from the High Street’
Date: Thursday 17th January 2008
Venue: Zoe Arden will welcome attendees to BT’s state of the art seminar facilities in central London W1
Time: 1:30 hrs to 4:30 hrs
To book, visit web site: http://corporate.helptheaged.org.uk/_corporate/engage/_engage_event.htm or contact: Nicolas Lalaguna, Business Development Manager, Help the Aged. Tel: 020 7843 1534.

YOUR INSTITUTE NEEDS YOU!

Tue, 11 Dec 2007 00:00:00 GMT

The IOM is now becoming established in its new home, with back office activities, such as membership administration, being blended with those of the CILT.

The IOM will continue to have a clear identity of its own, with its own website, journal, qualifications, events and other activities.

A Steering Group is being established to develop a strategy for integrating the IOM into the CILT, whilst retaining the IOM’s core values. This Group will be responsible for defining a schedule of activity and investment to deliver benefits and services that add value to the IOM membership. Where appropriate, IOM members will also join the relevant CILT committees to represent the IOM's interests and support the overall programme of activity.

The key to the success of the IOM within CILT both now and in the future is the active contribution of its members. If you wish to volunteer for the Steering Group and you are prepared to help make things happen, contact Julie Tayler on juliet@iomnet.org.uk. Julie will be working with the CILT until the end of January 2008 to ensure a smooth transition and help establish the IOM within the CILT.

We look forward to hearing from you.

TRANSFORMING PUBLIC SERVICES IS NEW GROWTH INDUSTRY

Wed, 05 Dec 2007 00:00:00 GMT

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM
News Release (2007/119) issued by The Government News Network on 5 December 2007

A review of the emerging public service industry was today commissioned by Business Secretary John Hutton to examine the increasing contribution being made to the UK's economy by firms and other organisations contracted to deliver services in the NHS, the prison service and right across the public sector.

Addressing the CBI's Public Services Forum at Sadler's Wells in London, Mr Hutton said:

"The last decade has seen our longest and most stable period of economic growth. And it has also seen the largest and most sustained investment in our public services.

"Out of this has emerged the 'public service industry'. Thousands of organisations have prospered in this new industry, employing tens, possibly hundreds of thousands of people and making a real difference to people's lives. It has helped us to meet the challenge of renewing our public services, through efficiency, innovation and effectiveness.

"And just as importantly, it has made a tremendous contribution to UK plc.

"It is a sector with huge potential. But to achieve it - at home and abroad - we need a greater understanding of its existing contribution and what more Government can do, as policy maker, regulator and procurer to get the best results for consumers and taxpayers."

In 2005/06 the Government directly procured £115bn of goods and services. However, the total value of this industry (including supply chains), key trends within it, contribution to UK economy (including innovation and productivity) has not, to date, been comprehensively analysed.

The aim of the review is to build a clearer, fuller understanding of the emerging sector. It will seek to identify the facts and factors that could support its growth - including the market's scale, employment base and characteristics of its leading players - and define the value of its contribution to our economy, productivity and international competitiveness.

The study will examine:

* the development of the 'public service industry' to date, including significant recent trends (in terms of value, innovation, productivity, capability, capacity);

* the value and competitiveness of the 'public service industry' by sector (e.g. health, education, welfare, defence, transport, home affairs), and capability (e.g. IT, consultancy, legal, scientific, accountancy, construction), including indirect supply chains.

* the number of people directly and indirectly employed in th 'public service industry'; its contribution to public service innovation and productivity in the UK economy;

* analysis of key factors and trends that drive performance across the sector including market management (policy and regulation) and commercial management (commissioning capability, contract management including scale, length, complexity, risk, incentives);

* the barriers to entry and exit across firm types in key public service markets and the characteristics of companies that operate across the sector;

* the comparative advantage of UK public service market in attracting overseas investment, compared to existing and emerging comparator markets overseas;

* the potential global market for goods and services in this market and the competitive advantage of UK businesses in overseas market (with a focus on emerging growth markets where UK has comparative advantage);

The study will engage with existing work across Whitehall departments and agencies relevant to the questions set out above (e.g. DUIS on innovation in the public sector, ONS on public sector productivity, OGC on commissioning and procurement.)

The study will be primarily concerned with providing a factual analysis of the issues discussed in relation to the above questions in order to inform further work in this area. To that extent, recommendations flowing from this analysis will be welcome as and where necessary.

The study will be led by Dr DeAnne Julius CBE and supported by a senior internal and external Advisory Panel and a secretariat from BERR. It is expected that the study will be published during summer 2008.

A NEW ERA FOR THE IOM

Thu, 01 Nov 2007 00:00:00 GMT

Institute of Operations Management changes the way its operations are managed!

The Institute of Operations Management has joined with The Chartered Institute of Logistics and Transport in the UK and will in future operate as a membership body within the CILT(UK).

The IOM will continue to operate as an Institute within an Institute with dedicated and focused qualifications, training programmes, membership categories, events and activities designed to appeal to the specific needs of operations managers, students and other members of the profession. The current post nominal designations will continue as these provide unique gold standard identification for all professionals.

The complementary nature of IOM activities in the field of manufacturing logistics, business process design and operation and upstream supply chain management coupled with the CILT strengths across the range of logistics and transport activities enables the IOM and CILT to develop an ideal partnership for the future. The IOM suite of qualifications and well developed training portfolio will add considerably to the joint offering to students and employers not only in the UK but across the world.

CILT(UK) Chief Executive Steve Agg says:

‘I'm delighted to welcome the members of the IOM into our community and predict a great future for us all. It's business as usual for everyone.'

IMAGINEERING

Mon, 15 Oct 2007 00:00:00 GMT

This year Imagineering is mounting it's own Fair at the Ricoh Stadium in Coventry over the last weekend in November.

The stadium hosts the Sky-Blues Premier football team and is a stones throw away from M6 J3, with free parking.

Our aim is to attract as many young people to enjoy the hands-on interactive engineering activities from over 30 companies. Bring along your offspring, grandchildren, brothers and sisters, mums and dads so that you can all enjoy the fun. Please click here for further details or visit the Imagineering general website at http://www.imagineeringweb.co.uk/index.shtml.

Help us to beat their record attendance of over 20,000 young people.

CALL FOR PAPERS

Tue, 25 Sep 2007 09:36:00 GMT

CASH IS KING!

Mon, 10 Sep 2007 00:00:00 GMT

The London & Southern Branch are hosting this talk in Brighton that will provide participants with a better understanding of the role of cash flow and cash generation in a business. For further information, click here.

IMPORTANT MESSAGE FOR IOM MEMBERS

Mon, 03 Sep 2007 00:00:00 GMT

An important message has been posted in the Members Only area of the website.

If you have not yet logged onto the site, please do so as soon as possible, so that you can access this information.

Members who have paid their subscriptions for 2007, have been sent details of their user name and password. If you have not received your logon details, please email: quals@iomnet.org.uk

MORE BUSINESSES IN THE MANUFACTURING SECTOR LOOK TO THE INTERNET TO RECRUIT

Mon, 23 Jul 2007 00:00:00 GMT

Jobcentre Plus employer survey confirms sustained buoyancy in recruitment market

As the number of employers looking to recruit increases, more and more are turning to the Internet to advertise jobs according to a new report from Jobcentre Plus.

The annual survey of over 4,500 employers indicates that around one in ten British businesses operating in the manufacturing sector were on the look out to hire new staff last year, 12% of whom used the Internet as a channel to advertise vacancies. The proportion of overall vacancies now being advertised through the Internet has increased to 16% from 12% in 2004, with one in every eight employers surveyed confirming they had used Internet websites to advertise a vacancy in the last 12 months.

This online trend is also being reflected by jobseekers themselves. In a single week in June, the Jobcentre Plus website experienced a record 6.6 million job searches conducted by nearly 2.2 million online jobseekers.

Caroline Flint, Minister of State for Employment and Welfare Reform, said:
“Employment in the UK continues to show sustained growth. However, if we are to meet our aim of achieving 80% employment we need to work harder still to support more people back into work. Yesterday we published a green paper on In Work, Better Off which sets out the steps to achieving full employment. That included our commitment to new Local Employment Partnerships through which major employers across all key sectors have pledged to create 250,000 jobs to support some of the hardest to help into work.

Overall, the results of the survey show that the UK recruitment market continues to maintain momentum. Last year 11% of vacancies in the manufacturing sector were successfully filled. Across the UK, small and medium-sized organisations (10-249 employees) were the most proactive recruiters, accounting for almost two thirds of successfully filled vacancies. They were closely followed by larger establishments in particular the businesses employing over 250 people.

Regionally, the South East and London maintained the trend for accounting for the highest proportion of filled vacancies and were also the regions most likely to refer to Internet or web-based recruitment.

Lesley Strathie, Chief Executive, Jobcentre Plus said: “This survey demonstrates the continued strength and development of the UK recruitment market. It is encouraging to see employers using services such as our website and the Employer Direct Online service, which gives employers complete control of the recruitment process from advertising to appointment. That is growing at a rapid pace and we expect that trend to continue. Alongside that the new Local Employment Partnerships give us a framework for close work with employers committed to recruiting a more diverse work force including lone parents and others who have been out of the jobs market”

To advertise a job vacancy online with the IOM please see details here.

AUTUMN COURSES - BOOK NOW

Mon, 23 Jul 2007 00:00:00 GMT

IOM offer a wide selection of courses - Discounts available for multiple bookings

Courses available in September include...

Demand Planning & Management
5-6 September 2007

Managing the Client Relationship
7 September 2007

Master Planning
11-13 September 2007

Material & Capacity Requirments Planning
18-20 September 2007

Changeover Time Reduction
21 September 2007

Supply Chain & Inventory Management
25-27 September 2007

QRM - Lead Time Reduction
28 September 2007

For further details and to book click here

SME MANUFACTURERS REMAIN BOUYANT IN QUARTER TWO

Fri, 20 Jul 2007 00:00:00 GMT

SME manufacturers had a particularly buoyant quarter with business activity at its sharpest in the series history, according to the PKF SME Index, a survey of 1,000 SMEs operating in the manufacturing, construction and service sectors.

Business activity for SME manufacturers jumped from 56.2 in Q1 to 58.2 in Q2 (marks above 50 indicate expansion and below 50 indicate contraction). New business / orders also increased considerably and the figure was the strongest seen for seven-and-a-half years – the figure in Q2 was 56.2, in Q1 it was 54.5. Survey respondents put the growth down to an upturn in demand, only some of which is seasonal.

The strong new order growth meant a solid expansion in the manufacturing workforce in Q2 – the figure was 52.0.

Input price inflation continued to creep up in the quarter. The figure was 63.7, up on the last quarter's figure of 62.2. In line with this increase, prices at the factory gate were also on the rise again – although a smaller rise than the previous quarter – as manufacturers attempt to pass on their costs to consumers.

PKF partner for growing business, Stuart Barnsdall, commenting on this quarter's survey results said: "SME manufacturers have had a very strong quarter and should be commended on the increases in business activity and new orders that have been achieved.

"The rising costs to both manufacturers – as a result of hikes in the prices of raw materials – and then on to the consumer are slightly worrying in the present economic climate, but with the interest rate still on the increase, it would be expected that these will be tamed in the coming months."

SUMMARY OF DATA FOR SME MANUFACTURERS

	2007 Quarter 2	2007 Quarter 1	2006 Quarter 4	2006 Quarter 3
Output	58.2	56.2	55.4	55.2
New Orders	56.2	54.5	55.3	54.5
Employment	52.0	52.5	52.5	52.0
Input Costs	63.7	62.2	62.8	69.0
Output Prices	57.3	57.9	55.4	55.0

SSI TO SPONSOR FIRST FRESH PRODUCE CATEGORY AT FOOD MANUFACTURE EXCELLENCE AWARDS

Thu, 19 Jul 2007 00:00:00 GMT

SSI to sponsor first 'fresh produce' category at 2007 Food Manufacture Excellence Awards

LONDON – 18 July, 2007 – SSI, a Chelford Group company and provider of ERP and supply chain management solutions for specialist industries, has announced that it will sponsor the inaugural ‘fresh produce’ category at the 2007 Food Manufacture Excellence Awards. The new award has been created to reflect the growing significance of the fresh produce sector within the UK food industry, and the increasing role technology plays in enabling food processors and distributors to meet the retailer’s requirements.

The market for fresh produce in the UK has grown rapidly in recent years, and the sector is now worth well over £1 billion. Much has changed in this sector. Organic food sales have more than doubled since 2000, and the grocery sector experienced growth of 7.5 per cent in the first quarter of 2007 alone. There are more product variants and significantly more value-added products available. The huge changes in this sector have led companies to implement new systems and business processes, including supply chain management and ERP systems, in order to deliver high quality products to stores. Award winners will be companies that demonstrate excellence in areas including productivity, process innovation, product development and company growth – including emerging in new areas of the fresh produce market.

“The fresh produce sector has completely revolutionised itself in the last ten years,” commented Neville Merritt, Group Marketing Director, Chelford Group. “Shoppers no longer simply demand fresh fruit and vegetables on the shelves – they now expect supermarkets to provide high quality, pre-prepared and packaged goods – such as garnished potatoes or baby vegetable packs – that are just as ready for use as any other food product. The fresh produce sector has responded to this demand, and evolved by adding multiple process and packing lines in what was previously a straight-forward warehousing and distribution facility. A company’s ability to effectively manage and control this new aspect of their business has become crucial.

“In addition to these market changes, the major retailers have also consolidated their suppliers, which means that many produce suppliers now have to source additional volumes from third parties in order to fulfil growing requirements,” continued Neville Merritt. “This increases the importance of effective integration between the order management systems of the retail suppliers and third parties, to manage complex triangulation of business transactions. Margins are tight in this sector, so ever more sophisticated transaction monitoring and cost analysis is needed to closely track consignment costs. This new award category recognises companies that have mastered these processes, and are adopting innovative practices across the supply chain.”

EXPANDED ALLIANCE FOR GLOBAL ADVANCED PLANNING AND SCHEDULING APPROACH

Thu, 19 Jul 2007 00:00:00 GMT

Quintiq and Capgemini form expanded alliance for global advanced planning and scheduling approach

Quintiq, a leading provider of Advanced Planning and Scheduling (APS) solutions and Capgemini, one of the world's largest providers of Consulting, Technology and Outsourcing services, today announced a new global approach for APS. This expands the longstanding cooperation between the two groups, enabling them to deliver enhanced capabilities to customer companies worldwide and opening new opportunities for Capgemini and Quintiq.

Capgemini and Quintiq have cooperated on APS projects for one decade, implementing the Quintiq solution at a wide range of logistics, transportation, field service, manufacturing, metal and other companies in the Netherlands and around the world. More than 30 companies, many of them industry leaders such as Alcan, Applus+ RTD, SIG Combibloc, DHL, VION Food Group, Royal Dutch Navy, and Novelis, have already benefited from the synergy of Quintiq's software and Capgemini's consulting and technology integration expertise.

The new global cooperation builds on this success, enabling Capgemini and Quintiq to offer more comprehensive solutions that address the planning and scheduling needs of large companies' on a global scale. Capgemini has established a Global Solution Center for APS (the "Center") in Utrecht, The Netherlands, dedicated to the Quintiq solution. The Center will operate as a virtual global unit, handling worldwide coordination of projects that are sold and implemented locally through its offices around the world. Technical development, in which the Quintiq solution is modeled and integrated with customer companies' specific needs and systems, will be handled remote, including Capgemini Mumbai India as part of the Rightshore(TM) concept of the Capgemini Group.

"The planning and scheduling market is booming as more and more companies focus on efficiency improvements to help them succeed in highly competitive global markets," said Bernard Helders, Head of Capgemini's Manufacturing, Retail & Distribution Global Sector. "Capgemini has an extensive network of local offices and deep industry as well as APS expertise. Quintiq has one of the most advanced APS solutions available. With our joint delivery model, we can offer one of the most comprehensive solutions for our clients' worldwide operations, complemented with local implementations that fit local languages and regulatory requirements."

Victor Allis, CEO at Quintiq commented: "Capgemini has exceptional APS implementation experience and worldwide capabilities that complement the strengths of Quintiq. We are very happy that after years of fruitful cooperation we are now able to launch a global approach that will bring meaningful benefits to our customers' entire businesses worldwide. Partnering in this way with Capgemini brings us closer to our customers and will enable us to better meet their varying needs."

UK ECONOMY BOOSTED BY GOVERNMENT SMALL BUSINESS SERVICE

Thu, 12 Jul 2007 00:00:00 GMT

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM
News Release issued by The Government News Network

Small firms using the Government's Business Link service grow their businesses, increase their employee numbers and add £750 million to the economy each year, a report published today shows.

The study of more than 3,000 small businesses showed that those who used Business Link had greater job growth than those that did not use the service.

The study found that for every £1 spent in government funding, Business Link achieved £2.26 of additional value to the economy as a result of better business performance.

Unveiling the report, new minister for small business, Stephen Timms said:
"Small and medium enterprises account for a large portion of the UK economy. This report shows the Business Link service is being used by many of them for help and support, boosting the economy as a whole."

"We will continue to grow the Business Link service, making it the definitive place for small businesses to find support."

The research also showed that using Business Link helped businesses:

* Run successful staff training programmes
* Develop business plans
* Develop marketing strategies

Business Link is the first port of call for anyone looking to start, develop and grow a business. It is a key part of the Government's campaign to promote enterprise and make the UK the best place in the world to start and grow a business.

LOW COST WORKSHOPS - LEAN OPERATIONS AND SUPPLY CHAIN MANAGEMENT

Tue, 10 Jul 2007 00:00:00 GMT

In partnership with AMNIS and Unipart Expert Practices (UEP), the Institute is pleased to offer the following workshops:

Getting more in to and out of your warehouse
8th November 2007

For details click here

Strategic Lean Improvement
19th November 2007

For details click here

IOM MEMBERS ONLY AREA GOES LIVE

Tue, 03 Jul 2007 00:00:00 GMT

Following the launch of the new IOM Website in April this year, the Members Only area of the site has now gone live.

This area contains on-line resources, such as an archive of articles from the Operations Management journal (formerly Control) and the Knowledge Bank (an A-Z of operations management). These are no longer open access, but only available to IOM members who have paid their 2007 subscription and who have now been sent details of their User Names and Passwords.

The area also includes a Forum, which provides an opportunity for on-line networking and information sharing on a wide range of topics. Currently, there are areas within the forum dedicated to topics such as Supply Chain Strategy, Lean & Business Excellence, Performance Monitoring & Improvement, IT in Operations and Logistics Management and many others.

The Members Only section of the website is designed to provide even more value for the membership subscription. If you are not already a member and wish to take advantage of the benefits and services offered by the Institute, click here to join.

ASDA'S DECISION MAY MARK A CHANGE IN SUPPLY CHAIN STRATEGIES

Tue, 03 Jul 2007 00:00:00 GMT

Does Asda’s Decision mark a Change in Supply Chain Strategies?
By Hugh Williams of Hughenden

The UK supermarket chain Asda, owned by Wal-Mart, recently announced that it is switching some of its sourcing for its George clothing range back to the UK. Whilst it is only a small proportion of products to start with, this represents a significant change of direction.

Angela Spindler, the Managing Director of George Global, has been quoted in the press as saying said that “It obviously makes sense for us to use local manufacturers here in the UK whenever we can, rather than shipping in products from the other side of the world”, adding that the initiative will cut the time it takes to get clothes into stores.

Does Asda’s decision mark the beginning of change?

This focus on speed and responsiveness rather than labour costs is nothing new for clothing designer and retailer Zara, part of the Inditex Group. In a world obsessed with minimising labour costs, often at the expense of high stocks, Zara manufactures up to 60% of its products in factories that are either in or close to their target markets, at a labour cost that can be up to 20 times higher than in far-eastern countries. Yet Zara’s Supply Chain is more profitable than most of its competitors whilst being much more responsive to the market. So is Asda’s decision a sign that other companies are starting to rethink their Supply Chain?

The share of costs between labour and raw material

This debate is even more fundamental. Cross-industry research has shown that out of the total cost of a product, labour used to represent about 60% of the costs, whilst raw material was approximately 30% (the rest being overheads…). This was 100 years ago. Back then the focus was on labour costs because, although labour was ‘cheap’, the lack of technology meant that a lot of people were needed.

In today’s environment, it is the other way round. Raw material represents approximately 60% of the total cost of a product, whilst labour is around 30%. So, why are we still obsessed with minimising labour costs, and keeping the unit cost of our products low by making big batches, when the result is large amounts of stock filling our Supply Chains that stretch half way around the world?

With the war on price being a given nowadays, the real competitive advantages are shorter lead-times and higher flexibility. This requires Supply Chains that are shorter and more responsive, quite the opposite to stock sitting on the water for 6 weeks with no value being added!

Have your say on this issue:
Do you believe that Asda’s decision is a reflection of bigger changes to come? Or, do you think that it is just a marketing ploy to make the retailer appear friendlier to local suppliers? Now you can have your say: Hughenden carries out polls on Supply Chain matters at http://www.hughenden.net/ and visitors can place their vote anonymously. (You can request to be notified of the results when the poll ends).

LACK OF I.T. PROCESS INTEGRATION LIMIT EURO I.T. MANAGERS ABILITY TO COMPETE

Tue, 19 Jun 2007 00:00:00 GMT

Almost half of European IT managers admit that a lack of IT process integration limits their ability to compete

ROME, June 19, 2007 – At the Gartner Application Integration and Web Services Summit, Sterling Commerce, an AT&T Inc. (NYSE:T) subsidiary today announced the results of a European survey of 374 IT managers in the UK, France and Germany. The survey, conducted by independent research company Vanson Bourne, found that almost half (44%) of IT managers believe that a lack of IT process integration is limiting their businesses’ ability to compete at a global level.

Despite the fact that almost three quarters (73%) of European IT managers face a more complex global supply chain than they did three years ago, the survey suggests that many companies are struggling to address the integration challenges of globalised business. A third of IT managers surveyed stated that their company operates separate IT systems for each internal business unit or division. Despite this reliance upon separate systems over a quarter of IT managers have not integrated effective process integration across the internal IT systems of their company’s global operations, regional offices and various lines of business.

The survey also revealed that many businesses are also struggling to integrate the IT systems of external supply chain partners. More than a third (38%) of IT managers believe that their companies have not yet implemented effective process integration with external suppliers, customers and trading partners.

Chris Hayes, senior product marketing manager for Sterling Commerce, said:
“This survey shows that a large number of European businesses are still struggling to take control of internal and external IT process integration, to the extent that it is limiting their ability to compete. The integration challenges revealed by this survey reflect companies’ desire to continue to leverage the value of their existing IT systems, but this needs to be done in a manner which delivers the adaptability necessary to handle ongoing business change and future business growth. To deliver this flexibility across heterogeneous IT systems and gain maximum return on their IT assets, many companies are turning to a Service Oriented Architecture approach. Indeed Gartner projects that ‘through 2008, more than 70% of the services in an organisation's portfolio will be derived from existing assets’1.”

Chris Hayes continued:
“Too many organisations think that an SOA approach requires a revolutionary deployment of yet another new set of standards and protocols, but in fact SOA is an architecture which can and should encompass and utilise existing systems and technologies. It is only by deploying SOA which builds on and extends these existing systems and technologies, such as B2B and EDI, that businesses can make full use of their IT assets and deliver flexible IT systems that truly support current - and future - business needs.”

GOVERNMENT POWERS FORWARD WITH NEW DEAL

Mon, 18 Jun 2007 00:00:00 GMT

The UK public sector will have access to green electricity at no premium, thanks to an innovative new deal signed this week.

The deal, worth around £1 billion over the next four years, guarantees central and local government customers one terrawatt hour of electricity from renewable sources - equivalent to 33% of current volumes - until at least 2011. Sustainability targets call for central government departments to be sourcing at least 10% of their electricity from renewable sources by March 2008.

Best of all, going greener won't cost departments any extra cash.
Unlike previous arrangements, under this deal buying green energy will be no more expensive than buying "brown" (non-renewable) energy and paying the associated climate change levy. In a market where demand for renewable electricity is outstripping supply, the new framework has secured these volumes and prices for four years.

The contract also includes a programme of site assessments for suitable renewable onsite generation, and toolkits for energy efficiency programmes for departments to meet the challenge of reducing carbon emissions by saving energy. There will also be an innovative carbon off-setting option which allows customers to buy certified emissions reduction certificates. These certificates fund climate change reduction schemes, for example projects providing energy efficient stoves to families in developing nations.

Other new innovative aspects of the deal include options for day ahead purchasing direct from the wholesale markets, physical netting off agreements and transparent margins and cost structures.
Significant overall value-for-money gains have been achieved from the new contract, including a 40% reduction in controllable supplier costs.

Over the last two years, average day ahead pricing has delivered savings of over 8% against the month ahead prices. For the first time central government will have access to the day ahead markets and sell-back options which can deliver significant savings and price management in a volatile energy market.

EdF Energy will supply the electricity under the deal, which was implemented by OGCbuying.solutions with technical support and energy expertise from the Office of Government Commerce and advice on sustainability from the Department for the Environment, Food and Rural Affairs.

The majority of central government's electricity requirement and significant local government energy needs are supplied under current arrangements managed by OGCbuying.solutions, which will continue until delivery under the new contract which commences on 1st October
2007. Over the life of the current contract, OGCbuying.solutions
has achieved consistently competitive prices for public sector customers, at around 3-5% below the average forward market price for electricity.

Derek Rothwell, Director of Procurement Buying Solutions at Buying Solutions said;

"This new procurement model ticks all the boxes - it will reduce costs, improve prices and provide an environmentally-friendly energy
resource. This impressive outcome was achieved through
collaboration with our public sector customers and full engagement with the supply market to negotiate the best deal. Pooling expertise and resource with our colleagues in OGC has proved fruitful and will pave the way for other government procurements to be conducted in a similar way." Claire Manning, Energy Category manager at the Office of Government Commerce said:

"The collaborative approach used to develop this new electricity deal, which is unique for the public sector, clearly shows the benefit of sharing expertise across government. We will continue to look for future opportunities under the Transforming Government Procurement agenda to deliver value for money and innovative solutions in energy procurement for the public sector."

For more information about the government's sustainability targets, please click here.

THE INTEGRATED SALES CHAIN WORKSHOP

Tue, 05 Jun 2007 00:00:00 GMT

Book now!

Effectively managing the quote-to-order process

An event sponsored by Cincom

In many companies, especially in the ETO (Engineer-to-order) industry sector the quotation to order process is difficult, expensive and potentially full of business issues. As we are getting more product variety and product feature variety, the management of the quote to order process is getting more complex for more companies. Where mass customisation was seen as a term for the exotic fringe it is now considered essential by many companies. Web-based product configuration and pricing are an increasing requirement for many companies, changing the rigor and technical sophistication of the quote-to-order process.

This seminar combines the knowledge and experience of academics, consultants, a specialist software supplier and several industrial representatives to show how modern technology and good process and product design take the pain out of the quote-to-order process. Suppliers of engineered products have found in the past that the quote-to-order process can cost up to 20% of turnover – with much of the cost hidden in general overheads. They also find that lack of process and consistency results in many quotes being too low (and leading to poor margins or losses) or too high (resulting in lost business). Good knowledge management is required to deliver well-priced, consistent quotations within sensible cost levels.

Who should attend?
Directors and senior managers in all companies where customer service is of paramount importance. This includes manufacturing companies, logistics service providers and retailers. The topics will appeal particularly to senior personnel in the areas of sales, engineering, logistics, finance and IT as well as general management charged with delivering profitable business performance and superior customer service.

For a full program and to book click here.

MANUFACTURING CLOSE TO A FOUR YEAR HIGH IN CASH FLOW

Tue, 05 Jun 2007 00:00:00 GMT

A quarterly survey produced by Euler Hermes UK and NTC Economics

LATEST MANUFACTURING INDUSTRY FINDINGS
- Growth of cash flow at 9% in Q1; close to a 4-year high
- But growth of profits falls back from Q4 2006’s 8-year high

Financial conditions at UK manufacturers remained largely positive at the start of 2007, according to the Q1 Cash Flow & Profit Report (2007) from Euler Hermes UK, a company of Euler Hermes, subsidiary of AGF and member of Allianz. Year-on-year growth of free cash flow rebounded to 9.0% in Q1, from 6.9% in Q4 2006 and only fractionally below the four-year series high of 9.2% recorded in Q3 2006. The last three quarters’ readings for growth of cash flow at UK manufacturers have been the three highest in the series history. Manufacturers linked their recent impressive cash flow growth to strong sales and prompter payments from clients.
Strong growth of current cash flow helped engender robust confidence at UK manufacturers with regard to likely changes in their cash flow over the next twelve months. On average, manufacturers expected to see growth of free cash flow of 6.2% over the coming year. Of the four industry sectors covered by the survey, only the construction sector (7.2%) was more upbeat with regard to their likely cash flow growth.
Profits at UK manufacturers also continued to rise in Q1, with an increase recorded for the third consecutive quarter. The rate of increase in profits fell back from the eight-year series record rate posted in Q4 2006 but nevertheless remained well above the long-run average. While strong underlying demand from the domestic and overseas markets and improved pricing power helped manufacturers to rebuild their margins, high raw material costs continued to exert a negative influence on manufacturers’ profitability.

Cash Flow at Q1 2007
Average % change in cash flow over:

past 12 months next 12 months

All companies                           3.8%                             3.2%
Services                                   1.6%                             1.3%
Manufacturing                        9.0%                            6.2%
Distribution                               2.7%                             2.8%
Construction                            4.5%                             7.2%

The Euler Hermes UK Profits Index
Index 50 = no change on previous quarter / year:

2005 2006Q3 2006Q4 2006Q1 2007

All companies                       50.1       52.6            51.3            57.3         50.9
Services                               54.8       55.4           53.0             52.1        63.0
Manufacturing                   52.3       55.0          53.0             65.6       52.8
Distribution                           44.6       52.4           53.8             59.3        36.2
Construction                         52.1       37.7           40.7             37.7         57.6

LOW COST WORKSHOP ON PLANNING AND FORECASTING

Tue, 05 Jun 2007 00:00:00 GMT

HOW EFFECTIVE ARE YOUR PLANNING AND FORECASTING METHODS?

Planning is a critical business process without which organisations cannot be effective!

For more information and to book

click here

MORE EFFICIENT, LOW CARBON AND SECURE ENERGY

Thu, 31 May 2007 00:00:00 GMT

Darling publishes Energy White Paper

Greater energy efficiency and a secure, low carbon energy mix for the long-term are at the centre of the Energy White Paper published by Trade and Industry Secretary Alistair Darling today (23 May 2007).

In a statement to the House of Commons, Trade and Industry Secretary Alistair Darling said:

"We face two big challenges - climate change and maintaining stable and affordable energy supply in an increasingly unstable world. The Energy White Paper sets out a long term framework for action to address these challenges at home and abroad.

"The UK is also becoming increasingly dependent on imported oil and gas at a time when global demand is accelerating. We will ensure that we make the most of our substantial remaining reserves in the North Sea, have a diverse range of sources for our imports and make further progress opening up markets in Europe and more widely.

"With a third of our current electricity generation capacity due to close in the next 20 years there is also a pressing need for investment in new low carbon sources. We will work to ensure there is a market price for carbon into the long term by strengthening the EU Emissions Trading Scheme.
We will triple the amount of electricity we get from renewables by 2015. We want to lead in the development of carbon capture and storage. And we will consult on the significant role that new nuclear power stations could play in cutting emissions and diversifying our supply.

"With the measures we are proposing across government on energy and the wider environment we can cut emissions by between 23-33 million tonnes of carbon by 2020 - the equivalent of removing all the emissions that we get from every car, van and lorry on Britain's roads today.

"Every action set in train by this White Paper is important, and none will be easy. Nor can we become a low carbon economy in a single step. But if each of us acts we can start to deliver the low-carbon economy vital to our prosperity."

For the full article please click here.

10 Complimentary places available for members of the Institute of Operations Management to attend the Low Carbon Innovation Exchange

With an ever increasing number of organisations realising their potential to reduce carbon emissions and increase energy efficiency, the Low Carbon Innovation Exchange gives delegates the opportunity to attend a range of discussion groups and case studies focused on how organisations have already reduced their environmental impact.

To receive one of 10 complimentary places to attend the event, which will take place on June 14th at the Olympia 2 Conference Centre in London, please contact Dominic Matthews, the organiser, at dom@carbon-innovation.com or on +44 (0) 1883 344 799 ensuring that you make reference to the Institute of Operations Management.

Full details of the Low Carbon Innovation Exchange can be found here.

THE CHALLENGE OF CHANGE IN THE PUBLIC SECTOR CONFERENCE

Fri, 25 May 2007 00:00:00 GMT

BOOK NOW!

The Challenge of Change in the Public Sector will explore the differences and similarities between private and public sector organisations in terms of change and the search for productivity and effectiveness. It will consider the impact of factors such as the strongly vocational motivation of many staff within the public sector and the pride of service to the community. It will also examine what tools and techniques can be translated from one sector to the other.

The event will start with presentations by Steve Egan, Deputy Chief Executive of the Higher Education Funding Council for England (HEFCE) and Mike Seitz, Commercial Director General at the Department of Health, who will set out the political and regulatory framework in which public sector organisations have to operate.

This will be followed by number of excellent case studies describing successful projects in NHS Trusts, Universities, the Prison Service, HM Revenue and Customs and other public sector institutions large and small, which will illustrate the practical issues and opportunities.

The open forum at the end of the day will provide an opportunity for speakers and delegates to draw together common themes and learning points, identifying where the challenges set out can and have been met and where issues still remain.

For further information and to book click here.

THE CHALLENGE OF CHANGE IN THE PUBLIC SECTOR EVENT

Fri, 25 May 2007 00:00:00 GMT

REGIONAL PRESENTATIONS AND VISITS

Wed, 23 May 2007 00:00:00 GMT

SUPPORT YOUR LOCAL BRANCH!

South West Branch
COST REDUCTION THROUGH SUPPLY CHAIN OPTIMISATION
Thursday 14 June 2007, Bristol

Professor Hendrik Vanmaele, who is internationally recognised for his in-depth knowledge and expertise in supply chain management, will demonstrate how the supply chain can be made a critical source of advantage in today's globalised environment..........
More info and to register click here

Midlands Branch
INVENTORY MANAGEMENT IN BUSINESS SYSTEMS
Tuesday 19 June 2007, Coventry

If you are involved in the delivery of inventory improvements or responsible for the planning thorugh MRP, then there are valuable tricks and tips to be gained from attending this event.....
More info and to register click here

London & Southern Branch
VISIT TO LINDE MATERIAL HANDLING (UK) LTD
Wednesday 20 June 2007, Basingstoke

The Linde Basingstoke site has been producing innovative materials handling equipment for over 50 years and pioneered the development of mechanised logistics at a time when the concept was virtually unknown in the UK......
More info and to register click here

JUNE COURSES - BOOK NOW

Wed, 23 May 2007 00:00:00 GMT

Invest in the future of your Business, Invest in training!!

Bookings are being taken for the following courses:

Total Quality Management (TQM)
12-14 June 2007

This course defines quality and explains how to use well established models and how to deliver and sustain improvements in quality....
Click here for more info and to book

Costing & Financial Basics for Operations Managers
19 - 20 June 2007

Do you come away from Cost Meetings, confident that the management accounts have presented the correct picture?.....
Click here for more info and to book

Getting the best from Customer Supplier Partnerships
21 June 2007

In todays world, good customer-supplier relations are no longer a luxury. They are a necessity.....
This programme aims to show how customer or supplier can initiate a programme to form and develop win-win partnerships by working together for mutal benefits..
Click here for more info and to book

IT for Supply Chain Optimisation
26-27 June 2007

IT Solutions can support your business with Supply Chain Management, but would you know which solution to choose and how to effectively use the package suited to your specific business requirements?........
Click her for more info and to book

VISIT TO NORBAR TORQUE TOOLS, BANBURY

Wed, 16 May 2007 00:00:00 GMT

Norbar Torque Tools is a third generation family owned business operating in a niche market. The company designs and manufactures precision torque measurement devices in its Banbury plant for a wide range of industrial users worldwide.

Having spent 10 years on lean improvements, the company has achieved much, but believes it can still achieve much more. Participants will witness examples of both step and continuous change, and will have the opportunity to discuss the companies successes and failures.

for more details click here

IF YOU ARE INVOLVED IN A CHANGE INITIATIVE, THIS WORKSHOP WILL IMPROVE YOUR CHANCES OF SUCCESS

Tue, 15 May 2007 00:00:00 GMT

Lean and Continuous Improvement Workshop, 15 May 2007

Over 45% of organisations will start a business or continuous programme over the next 12 months. Of these companies, over 75% will be unhappy with the progress they make. This interactive workshop starts by reviewing the principles of change and provides an overview of the main change philosophies that exist today (Kaizen, Lean and Six Sigma) allowing participants to discuss how or why organisations choose any one, or a combination of them...........

for more details click here

IMPROVE YOUR SUPPLY CHAIN IN THE LAST 50 METRES BY ATTENDING THIS WORKSHOP

Mon, 14 May 2007 00:00:00 GMT

Applying Lean Principles to Reduce Supply Chain Costs in "The Last 50 Metres"

This workshop will demonstrate how to improve supply chain performance, reduce supply chain costs and working capital whilst improving on shelf availability. It will give attendees clear examples of how their own supply chains can be improved........

for more details click here

BOOK NOW FOR COURSES IN MAY

Tue, 01 May 2007 00:00:00 GMT

LEAN PRINCIPLES
1- 2 May 2007

This two day course considers the lean business principles developed and implemented by Toyota, to provide an understanding of the fundamentals affecting product flow.....click here

EFFECTIVE STORES MANAGEMENT
9-10 May 2007

The warehouse or stores is a vital function in most industrial organisations. Frequently, however, the benefits available to the business from effective control of the operation are either overlooked or under exploited. This course is dedicated to exploring the opportunities for gain that are achievable by improving managment and control.....click here

REMOVE AND AVOID EXCESS & OBSOLETE INVENTORY
15 May 2007

Excess and obsolete inventory is a constant problem for many companies' balance sheets. There are two ways to deal with the problem, both of which are addressed in this course: first, removing excess and obsolete inventory at minimal write off cost; and second avoiding the recurrence of the problem..... click here

VALUE STREAM MAPPING
16 May 2007

Value Stream Mapping has become an accepted first step to making effective changes towards Lean Manufacturing and can help identify and coordinate the most appropriate steps, leading to short and medium term clarification of where the operation is going and how to get there.....click here

OPERATIONS IMPROVEMENT THROUGH PERFORMANCE MEASUREMENT
17 May 2007

This course explains how operations performance can be improved through measurement. It is primarily aimed at first line and middle managers who are responsible for running day-to-day business operations.....click here

Visit to Siemens Medical Solutions - East Anglia Branch Event

Tue, 24 Apr 2007 00:00:00 GMT

East Anglia Branch

in association with MAS East

Visit to
Siemens Medical Solutions
Diagnostics Manufacturing Ltd

Tuesday 24th April 2007, 6.00 - 8.30pm

Sudbury, Suffolk

The East Anglia Branch is pleased to offer members this opportunity to have a look
around Siemens Medical Solutions Diagnostic Manufacturing Limited operations and
to learn what the company is doing to support continuous improvement…… ..

The company use Six Sigma methodology to provide the business with the tools
to improve the capability of their processes and have introduced Lean to ensure
the company get the right things, to the right place, at the right time, in the
right quantity while minimizing waste and being flexible and open to change.

NOT YET BOOKED? WE STILL HAVE AVAILABILITY

For more information, click here.

Review of TOC and Lean within Manufacturing - Midlands Branch Event

Tue, 24 Apr 2007 00:00:00 GMT

The Theory of Constraints (TOC) and Lean are two very powerful
tools in their own right together they are exceptional.
Yet many people still use one or the other without recognising what they are missing ………

Based on recent case studies both in the UK and in the USA, the presentation will highlight just how TOC and Lean can combine and deliver to the bottom-line. These will include MRO type operations from the US Department of Defense, to MTO/MTS environments and to the whole subject of supply chain management and international logistics.

Delegates will gain a new, and perhaps clearer, understanding of where the TOC fits within any manufacturing organisation. They will discover how the TOC has developed over the past 20 years and see how one aspect of TOC is leading the way in India and China, creating a new powerhouse for manufacturing excellence.

WE STILL HAVE PLACES AVAILABLE FOR THIS
INTERESTING AND INFORMATIVE PRESENTATION

NOT YET BOOKED? SIMPLY COMPLETE THE REGISTRATION FORM

AND RETURN IT TO:

The Institute of Operations Of Operations Management
Events@iomnet.org.uk or Fax: 02476 692305

DON'T MISS THIS WORKSHOP ON INVENTORY MANAGEMENT!

Mon, 16 Apr 2007 00:00:00 GMT

Inventory Management can make or break many businesses, who have to improve customer services whilst reducing inventory and supply chain costs. But organisations cannot be effective if they do not have access to the latest inventory management tools and techniques.

There are still places available on this workshop on 25th April 2007, which will review and discuss the best practice in this area. At only £50.00 for IOM members or £95.00 for non-members, can you afford to miss it?

For more information click here.

REDUCE YOUR LEAD TIMES

Tue, 03 Apr 2007 00:00:00 GMT

Customers are now demanding customised products in the shortest possible lead times. Are your business processes competitive: do they allow you to meet the tight lead times demanded by your customers?

The Institute's one day course on Quick Response Manufacturing - Lead Time Reduction (12th April 2007) introduces the QRM philosophy and tools, and then allows participants to explore the difference between QRM and current production planning and control systems based on 'lean manufacturing' and 'just in time' techniques.

If you are responsible for planning and controlling production and want to reduce lead times and costs simultaneously, this course is for you.

For more information click here.

IOM WEBSITE GOES LIVE!

Mon, 02 Apr 2007 00:00:00 GMT

The first phase of the new IOM website went live on 1st April 2007. Commercially enabled, visitors can now join and pay for their subscription on-line, book and pay for events, buy and borrow books, and search the Knowledge Bank and journal archives.

Designed to be a key source of knowledge and information on operations, supply chain and production management, it will also offer additional benefits and services for members of the Institute. The second phase of development, due to go live in May 2007, will include member only areas, including a discussion forum. The Forum will enable individuals to network with other professionals on-line, by allowing them to post questions, exchange ideas and participate in discussions.

IF YOU ARE INTERESTED IN AGILE LOGISTICS VISIT IDEAL STELRAD

Mon, 02 Apr 2007 00:00:00 GMT

Are you considering implementing RF technology (mobile devices) to cover manufacturing receipts, warehouse receipt and putaway, replenishments and/or outbound picking? Ideal Stelrad (formerly Caradon Plumbing) have done just that and are willing to share the challenges they have been faced with and the benefits they have achieved. The visit is scheduled for Thursday, 12th April 2007.

For more information, click here.

DO YOU NEED TO IMPROVE YOUR BUSINESS PROCESSES

Mon, 02 Apr 2007 00:00:00 GMT

Spaces are still available on the Business Process Improvement course being held at the IOM HQ in Coventry from 3rd - 4th March 2007. If you are considering or actually engaged in the launch of a process improvement initiative, this course could help you to bring about significant, radical improvement in your organisation.

For more information, click here.

8th February

Thu, 08 Feb 2007 00:00:00 GMT

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Test3

Thu, 11 Jan 2007 12:02:00 GMT

Test Headline

Thu, 11 Jan 2007 00:00:00 GMT

This is a test

New IOM website launching soon

Tue, 24 Oct 2006 00:00:00 GMT

The new IOM website is being developed and will be launching very soon. Members can register, change their profile, buy products and pay securely online using their credit card.