Latest News from IOMNet.org.uk

Manufacturers ''should exploit overseas buoyancy''

Tue, 07 Sep 2010 11:27:00 GMT

UK manufacturing companies have been advised to take advantage of the current buoyancy in export markets.

This is according to a spokesman from EEF - the manufacturers' organisation, who pointed to growing levels of demand in new markets as potential opportunities for producers.

Individuals concerned with operations and manufacturing management may be interested in Mark Swift's comments that more traditional markets such as the US and Europe have become well established, but other countries are increasingly demanding UK products.

"The growth figures coming out of places like China, Brazil and Russia are very strong," the expert said, adding that firms have realised this and are breaking into such countries to establish new customer bases.

He also pointed to the expanding low-carbon economy as offering future opportunities for profit.

Mr Swift's comments come after the body's latest manufacturing sector statistics showed that trading conditions for companies in the industry remain buoyant as a result of growing exports, with good prospects for growth anticipated during the remainder of 2010.

Manufacturing output and orders ''continue to rise''

Mon, 06 Sep 2010 14:12:00 GMT

The UK's manufacturing industry is showing "strong" signs of recovering from the recession, a new report states.

A survey by BDO and EEF - the manufacturers' organisation discovered that output and orders reached record levels for the second month in a row during the third quarter of this year.

In addition, the Manufacturing Outlook study claims balances remain high and confidence among firms means that a growing number are hiring new staff and planning investment in their operations.

Those concerned with manufacturing management may also be interested to note that overseas demand has increased, with prospects for producers looking strong over the short-term.

However, EEF chief economist Lee Hopley cautions that uncertainties still remain, particularly with regards to the global economy.

"We have to maintain perspective that the recovery is coming from a very low base and the risks to the economy in the medium term haven't gone away," he explains.

The figures follow on from a report from Markit and the CIPS, which indicated the UK's purchasing managers index declined between July and August 2010 from 56.9 to 54.3, although the manufacturing industry continued to expand.

UK services sector ''sees profitability squeeze''

Fri, 03 Sep 2010 11:16:00 GMT

Profitability among companies in the UK's services sector dipped in the past quarter, new data show.

Figures from the Confederation of British Industry (CBI) show that both the consumer and business and professional services fields witnessed declines in the value of business during the period in question.

Carried out between July 28th and August 11th, the survey covered 165 industry organisations and found that the rounded balance of consumer services companies reported growth in the value of business stood at minus eight per cent during the three months, with falls in volumes and profitability.

"These survey results highlight that activity across the economy is patchy, with some sectors doing better than others." CBI chief economic adviser Ian McCafferty stated, predicting such conditions will continue into 2011.

Declines were also seen in value, profitability and selling prices within the business and professional services, while volumes remained little changed at plus two per cent.

However, professionals concerned with inventory control techniques may be interested in CBI statistics revealing that high street sales volumes rose during the year to August 2010, the second rise in a row.

UK manufacturing expansion slows in August

Thu, 02 Sep 2010 16:28:00 GMT

The rate at which the UK's manufacturing industry is expanding slowed during August this year.

According to a new report, the purchasing managers' index dipped from 56.9 the previous month to 54.3, with any number above 50 indicative of growing activity.

The figures from Markit and the CIPS show that the industry is continuing to see increasing activity and output as the UK recovers from recession, with the sector boosted by strong expert growth in recent months.

However, growth is anticipated to continue to slow as proposed cuts to public sector spending planned by the coalition government affect the market and the UK's economic expansion.

Operations management professionals are advised that Caxton FX has noted the latest index is considerably below analysts' expectations and slower growth is predicted during the latter half of 2010.

The company pointed to the impact of the data on sterling, as it pushed down the value of the pound against the euro.

Conditions ''remain difficult for retail sector''

Wed, 01 Sep 2010 15:23:00 GMT

The retail industry is witnessing signs of recovery, but conditions for the sector remain difficult, one expert has declared.

British Retail Consortium (BRC) spokesman Richard Dodd stated that although consumer confidence has improved slightly, many people remain reluctant to make significant purchases.

Those involved in continuous improvement programmes in the retail industry may be interested to learn that his remarks come after the GfK NOP Consumer Confidence Index climbed by four points month-on-month during August 2010 to 18.

Mr Dodd said that the increase could be attributed to the fact that the full impact of government spending cuts has not yet occurred.

He explained: "We are experiencing a bit of an interim period where the intense speculation about cuts that we've had in the media has eased off slightly."

The specialist added that the rise in August followed a poor index rating for July, although he welcomed the fact that consumer confidence went up last month.

Recovery forecast for UK manufacturing

Tue, 31 Aug 2010 15:34:00 GMT

A recovery has been projected for the UK's manufacturing industry, with a return to positive average annual growth anticipated during 2010 and 2011.

This is the view expressed in a new report from the British Chambers of Commerce (BCC), which pointed to sharp falls in output during 2009 and predicted that the production sector will rally over the coming years.

However, operations management professionals may be interested to note that "falling investment and damaging regulations" could restrict the pace of recovery, as industrial firms may struggle to boost output in the wake of the recession.

Capital investment is needed, the organisation claims, to ensure that Britain meets its "productive potential" and maintain growth in manufacturing output recorded in recent quarters.

Increases in production are expected of three per cent during 2010 and two per cent next year, following a drop of 10.5 per cent in 2009.

"Though the manufacturing sector has the potential to recover in the next few years, it must be nurtured and supported, to ensure that viable firms do not lose their skills base," the report states.

In addition, the services sector is forecast by the BCC to expand by 1.1 per cent this year and by 2.2 per cent in 2011.

Cuts warning issued by Scottish police chief

Fri, 27 Aug 2010 16:48:00 GMT

A police chief in Scotland has warned that jobs will have to be lost at the force as a result of funding cuts.

Strathclyde Police has been advised that finances could be reduced by up to 24 per cent during the next four years and to plan appropriately.

According to Chief Constable Steven House, there is "no choice" other than proposals to slash hundreds of positions from the largest force in Scotland.

"With cuts of this scale, it's inevitable we won't be able to do everything that we currently do," he stated, insisting that retaining frontline services will remain a priority for the force.

In addition to the proposed job cuts, specialist units may have to be sacrificed, the policing boss stated.

Those specialising in operations management in the public sector are advised that the Herald welcomed Chief Constable House's comments as "spelling out the kind of hard choices that must be made".

Rise reported in automated machinery purchases

Thu, 26 Aug 2010 15:18:00 GMT

In order to boost productivity rates in manufacturing operations, rates of automation and robotic equipment purchases have risen.

This is according to the latest industry figures, which suggest that sales have surged by 55 per cent during the first half of 2010, compared with the same period of 2009.

A report by the British Automation and Robotics Association (BARA) reveals that the sector has witnessed its first expansion since 2006, something which may interest those working on continuous improvement programmes.

Orders have risen substantially in fields such as food and drink production and the pharmaceuticals, medical and healthcare industry, BARA claims, anticipating further growth during the rest of the year.

The organisation's president Mike Wilson said: "The growth both overall and in the newer sectors is very encouraging, but the UK's robot sales are still well behind other countries who are also achieving significant growth rates in 2010."

BARA has been involved in a study on behalf of the Department of Business, Innovation and Skills in conjunction with the Processing and Packaging Machinery Association into why firms in other European nations have higher levels of automation than similar companies in the UK.

European industry continues to grow order books

Wed, 25 Aug 2010 17:02:00 GMT

Companies operating in the European industrial sector have witnessed a further monthly increase in order books.

This is according to Eurostat, which revealed that new purchases expanded by 2.4 per cent month-on-month in June, something that may increase operations management activity.

Coming in the wake of an increase of four per cent in May 2010, the figures indicate the sector is rallying in the wake of the global downturn.

According to the European Union (EU) statistics agency, the eurozone nations saw order books expand by 2.5 per cent during the month.

In sectors including those that are perceived to be more volatile, such as rail, ships and aerospace, new orders rose by 1.8 per cent across the EU as a whole and by 1.6 per cent in the euro area.

Over the year to June 2010, books stand 22.5 per cent above the levels recorded for the same month of 2009.

Meanwhile, rising demand for vehicles has led truck giant Scania to announce plans to expand its European workforce by 500 employees.

Firms ''should check energy efficiency claims''

Mon, 23 Aug 2010 15:13:00 GMT

Companies investing in technology to enhance the energy efficiency of their operations should ensure they investigate all claims made about its performance.

This is according to Carbon Trust Footprinting Company general manager Euan Murray, who noted that the "environmental credentials" of solutions should be examined to ensure they are "based upon robust research which can be independently verified".

His comments may be of particular interest to those involved in operations management who are looking at ways of enhancing the energy efficiency of their organisation and reducing its carbon footprint.

Mr Murray noted the Dyson Airblade - which was granted a Carbon Reduction Label earlier this year - has been shown in tests to reduce power consumption by up to 80 per cent in comparison with traditional models and added that "investing in more energy-efficient equipment of any kind has real environmental and economic benefits to all businesses".

Developed by the Carbon Trust, the Carbon Label scheme provides businesses with detailed information about the environmental footprint of products or services and the greenhouse gases emissions during their lifetimes.

Government asks public to vote on savings ideas

Fri, 20 Aug 2010 16:23:00 GMT

Members of the public are being invited to visit a new website that allows them to vote on areas where public sector savings and changes should be made.

The Spending Challenge has been launched by HM Treasury as part of efforts to reduce government expenditure and cut the current budget deficit with the minimum harm done to the delivery of public services.

It forms part of the Spending Review, which comes to an end on October 20th, with voting closing on August 31st, something that may be of particular interest to operations management professionals.

The process of consultation will be used to inform public sector budgets over the coming four years and the website has been divided into categories such as benefits, transport, charities, defence, central government, environment, health and police.

Visitors to the portal are invited to rate proposals with between one and five stars after more than 44,000 suggestions were made.

Demand for UK manufactured goods rises

Fri, 20 Aug 2010 12:59:00 GMT

The balance of UK manufacturers reporting a rise in total orders compared with those claiming them to be below average has reached its highest level since August 2008, it has been reported.

According to the Confederation of British Industry (CBI), demand for goods improved, taking the index to a balance of -14 per cent, two points higher than the -16 per cent recorded in July.

Those concerned with production and inventory control may be interested in the latest monthly Industrial Trends Survey from the organisation, which reveals that export order books strengthened significantly over the period - rising from a balance of -12 per cent in July to -1 per cent this month.

August 2010 also saw 30 per cent of respondents forecast a rise in production during the coming quarter, compared with 20 per cent predicting a fall, while prices are also anticipated to increase over the period.

"Prospects for the manufacturing sector remain very positive," CBI head of economic analysis Lai Wah Co remarked. "Demand is steadily improving, helped by the revival of export orders after some weakness last month."

Manufacturing management specialists are also advised that the Office for National Statistics' Index of Production for June revealed a 4.1 per cent jump in total manufacturing output, with nine out of 13 sub-sectors witnessing rises.

Scheme aims to boost energy efficiency of buildings

Wed, 18 Aug 2010 15:31:00 GMT

A new initiative aims to industrialise supply chains in order to speed up efforts to enhance the energy efficiency of buildings.

Launched by a consortium led by the Energy Technologies Institute (ETI), the project is looking to improve the operations management of distribution channels in order to facilitate the refurbishment and retrofitting of existing residential properties.

The £3 million scheme is part of efforts to meet the UK's 2050 goals to reduce greenhouse gas emissions and ensure that more homes are energy-efficient by improving design, supply and implementation processes.

Covering two years, it will focus on developing technologies in order to reduce the impact on the environment of most of the 26 million residential properties in the UK through supply chain solutions.

ETI chief executive Dr David Clarke commented: "Persuading consumers to take-up refurbishment and technology retro-fit opportunities requires us to address the challenge of creating supply chains and delivery routes which consumers trust and which they consider affordable."

The launch of the ETI initiative comes in the wake of calls by Ebico for property owners to make buildings more energy-efficient ahead of a new European Union directive that comes into force in 2012 regarding the sale of homes.

Government appoints Sir Philip Green to head efficiency review

Tue, 17 Aug 2010 15:33:00 GMT

Ministers have selected retail tycoon Sir Philip Green to head an efficiency review of government spending.

In news that may affect operations management experts in the public sector, the boss of clothing giant Arcadia Group will assess expenditure over the past three years in a bid to highlight potential savings.

Under the terms of the external review, requested by prime minister David Cameron, inefficiencies will be identified in the current system and recommendations made for the future.

Minister for the Cabinet Office Francis Maude commented: "This government is doing its utmost to ensure we make savings at the centre, not the front line."

Sir Philip will be supported by officials from the Cabinet Office and will examine progress towards implementation of the Operational Efficiency Programme and whether government contracts and leases offer value for money.

Analyst Gartner recently advocated adopting a "radical" approach to delivering public services around the world in order to reduce budget deficits through sustainable savings.

Government is "really keen on manufacturing"

Mon, 16 Aug 2010 16:54:00 GMT

The UK's energy secretary has insisted the government is "really keen on manufacturing" and wishes to provide support to the sector.

Speaking to the BBC, Chris Huhne declared that a double dip recession is unlikely and forecast the industrial sector would help to pull the economy out of the downturn.

"We've got good export growth," he declared, adding "there are a lot of forces working to sustain the recovery".

Mr Huhne's comments come as recent figures published by Business Green show that despite the recession, the number of firms signed up to the Prince's Mayday Network - which encourages organisations to reduce their carbon emissions and improve their energy efficiency - almost doubled during the past 12 months.

Those concerned with continuous improvement and operations management programmes may be interested to learn that the growth in the body has been driven by small businesses, according to its marketing manager Lauren Sandwell.

She told the publication that registration had risen by 87 per cent in 12 months to more than 2,850 enterprises aiming to tackle climate change and reduce their impact on the environment.

Support for manufacturing SMEs ''should focus on growth''

Fri, 13 Aug 2010 16:58:00 GMT

Rather than concentrating on issues such as enhancing productivity and efficiency programmes, support for small and medium-sized enterprises (SMEs) in the manufacturing sector should concentrate on generating revenue growth.

This is the conclusion of a new report on the industry from the University of Cambridge's Institute for Manufacturing (IfM), which predicts the field could play a major role in the country's economic revival and job creation among a range of sectors.

Compiled by the IfM Education and Consultancy Services (IfM-ECS) industry engagement unit, the study was based on information from more than 500 manufacturing SMEs and suggested growth and sustainability should be the goals of efforts to assist businesses.

Those concerned with continuous improvement efforts in companies may also be interested in the assertion by IfM-ECS chief executive Peter Templeton that SMEs need to be given "appropriate tools to help them develop a coherent strategy", as well as help to prioritise the best way to focus limited resources and develop capabilities.

Recent figures from EEF - The Manufacturing Institute indicated that the expansion of the production sector as a whole will outstrip UK economic growth both this year and in 2011.

Governments ''should adopt radical public sector cost approach''

Thu, 12 Aug 2010 14:49:00 GMT

A "radical" approach should be adopted by governments around the world to reduce the cost of delivering public services.

This is the view expressed in a new report from analyst Gartner, which advocates employing more innovative and less "traditional" ways of cutting budget deficits.

According to the study, which may be of interest to operations management professionals in the public sector, uncertain economic conditions require new means to generate the required sustainable savings in the wake of the global downturn.

"The aftermath of the most recent global financial crisis, the sluggish recovery in some countries and the significant level of debt require continued and increasing cost-containment discipline," Gartner vice-president Andrea Di Maio stated.

The company recommends that areas such as e-government, workforce management, crowdsourcing, cloud services, linking interoperability frameworks, portfolio management and IT initiatives offer opportunities to cut spending.

For example, the UK government recently launched a scheme aimed at providing NHS employees with an opportunity to improve patient treatment as part of the Big Society concept.

Manufacturers ''driving out costs'' to ensure survival

Wed, 11 Aug 2010 16:36:00 GMT

The UK''s manufacturing companies will be intent on "driving out costs" over the next year to ensure they remain competitive and guarantee their survival, one specialist has declared.

"Everyone is trying to examine the cost base as much as possible," Steve Knight stated, adding that the industry is likely to see continuing consolidation, something operations management professionals may be involved with.

The business manager for consultancy Newton explained that certain firms, including commodity producers, businesses providing items to the government and a number of food and drink companies, are under particular strain in the current climate.

Mr Knight suggested that investment will improve in the market during the coming months, but this will tend to go towards green manufacturing and emerging technologies rather than "traditional factories".

His comments follow projections from EEF - The Manufacturing Institute, which forecast growth in the production industry of 3.8 per cent this year and 3.4 per cent in 2011, significantly ahead of anticipated UK economic expansion rates of 1.1 per cent and 2.1 per cent.

Continuous improvement solution boosts Barloworld efficiency

Tue, 10 Aug 2010 16:35:00 GMT

A continuous improvement programme has generated cost savings and better process outputs for Barloworld Handling.

According to the company the Six Sigma tools and techniques have significantly enhanced the efficiency of its operations and improved customer service levels.

Commenting on the scheme, Barloworld field service manager Phil Marles said that key "positives" have been a better working relationship with Hyster, as well as boosts to "both manufacturing and quality testing".

A total of 16 staff members from the company have "black and green belt" qualified in order to deliver improvement initiatives since the launch of the Six Sigma programme in April 2008.

It is aimed at enhancing consistency and quality, with schemes achieving faster response times from engineers, a reduction in waste and fewer breakdowns, among other outcomes.

Those considering taking operations training courses may also be interested to learn that forklift supplier Barloworld recently implemented a new fleet management system for materials handling equipment, which analyses live performance data through a web portal.

National public sector cuts ''to affect small firms''

Mon, 09 Aug 2010 14:39:00 GMT

Small businesses are likely to be affected by public sector funding cuts, it has been forecast.

Both head of policy at the Federation of Small Businesses (FSB) Andrew Cave and former Apprentice winner Tim Campbell made this assertion during the T-Mobile Small Business Roundtable Debate.

Addressing the event, founder of Bright Ideas Mr Campbell explained that high jobless rates as a result of falling sector employment could place a squeeze on disposable income within local economies, something which operations management specialists may wish to plan for.

For example, Mr Cave cited Kent as a location where the removal of funding for schools construction is having an impact upon building firms, as the private sector in this field remains sluggish.

The event at the Haymarket Hotel in London this month examined the changes smaller firms are making to their business practices as part of continuous improvement programmes, in order to succeed and grow in 2010.

Manufacturers ''experiencing component supply problems''

Fri, 06 Aug 2010 16:18:00 GMT

Difficulties relating to the supply of components are hindering manufacturers in the UK and Europe, it has been asserted.

In an article for the Financial Times, Hal Weitzman warned that such problems could lead to disruptions to production and may even place businesses'' recovery from the economic downturn in jeopardy.

He explained that a number of leading international companies have had supply chain issues in recent months, including Audi, Porsche, Boeing and Caterpillar.

Those concerned with demand planning and employing inventory control techniques may be particularly interested in his comments that distribution networks were heavily affected by the recession and some are struggling to cope with growing order books.

Mr Weitzman noted that 51 per cent of US manufacturing enterprises polled recently by MFG.com had experienced "significant supply chain disruptions" between April and June 2010.

His comments come as the latest purchasing managers'' index for the UK''s production industry revealed it is continuing to grow, standing at 57.3 in July this year.

Operations management innovations sought from NHS staff

Thu, 05 Aug 2010 16:04:00 GMT

A new scheme has been launched by the government which is intended to give NHS staff the opportunity to have a say over how patient treatment may be improved.

The Department of Health initiative is part of the Big Society concept and will provide public sector workers with the opportunity to establish social enterprises.

Projects could include ways of enhancing operations management within the health service and care services minister Paul Burstow stated they will help to "plough resources back into the community", using "local know-how on how resources can best be used" by placing NHS staff in charge.

All employees of Primary Care Trusts are being given the opportunity to request to establish social enterprises in two-thirds of Strategic Health Authorities, with a number of schemes, such as a specialist health-visiting programme in Derby, already launched.

Meanwhile, a new Procure 21+ framework has been unveiled by health minister Simon Burns, which is intended to save more than £200 million in NHS procurement costs by streamlining and simplifying current processes.

Strong UK manufacturing growth continues

Wed, 04 Aug 2010 11:30:00 GMT

July witnessed a rise in manufacturing output in the UK for the tenth consecutive month, new figures have revealed.

Markit''s Purchasing Managers'' Index (PMI) for the period stood at 57.3, a slight decline from June''s 57.6 total, with any figure above 50 representing growth.

The dip in activity was slower than anticipated and new orders continued to expand during the month, with strong demand from the US and Asia offsetting a decline in orders from Europe.

Jobs increased in the field and volumes of new business remained strong, with the pace of growth in the industry expected to remain steady as it recovers from the effects of the economic downturn.

However, there was a slowdown in export orders over July, as overseas demand for products contracted, something that could affect operations management activities.

Meanwhile, another report by Markit for KPMG has predicted that employment will expand strongly within the manufacturing sector over the next 12 months.

Voluntary sector views invited on efficiencies

Tue, 03 Aug 2010 11:09:00 GMT

The voluntary sector is being consulted by the government about ways in which public services can be streamlined.

Employees committed to continuous improvement programmes in the sector may be interested to learn that charities are being asked for their ideas about how to produce greater value for money spent.

Unveiled by Cabinet Office minister Francis Maude and civil society minister Nick Hurd, an open letter has been addressed to voluntary, community and social enterprise organisations asking them for views about how to reduce the Budget deficit.

Bodies are being invited to work alongside the Office for Civil Society in generating savings across the public sector and identifying "better ways of doing things", something which operations management could help with.

"We are facing some of the most challenging economic times and every area of government is looking at reducing costs and streamlining their work," Mr Hurd declared.

In related news, a recent poll by the British Chambers of Commerce found that 64 per cent of business leaders welcome the balance of spending, savings and tax rises outlined by the coalition government.

UK''s small manufacturers ''increasing production''

Mon, 02 Aug 2010 13:55:00 GMT

Production among smaller manufacturers in the UK increased over the three months to July this year at its fastest rate since April 1995, new figures show.

Data from the Confederation of British Industry (CBI) reveals such companies have witnessed an increase in demand both abroad in at home, while many are also boosting their stocks of goods in the wake of the recession.

Latest statistics from the organisation''s poll of more than 400 small and medium-sized producers indicate 41 per cent witnessed an increase in output over the period in question, compared with 20 per cent claiming that it dropped, giving a balance of +21 per cent.

However, the CBI''s SME Council chairman Russel Griggs warned that growth in productivity could stall over the coming quarter as demand for UK manufactured goods is anticipated to weaken.

Operations management specialists in the field may also be interested to learn that the same body recently reported there was a balance of +24 per cent in the number of manufacturers reporting an increase in output during July 2010, with the index climbing to its highest rate in 15 years during the month.

UK manufacturing ''leading nation''s output''

Fri, 30 Jul 2010 16:39:00 GMT

The UK''s manufacturing industry led the nation in terms of output during June this year, a new report has claimed.

Figures published by Bibby Financial Services showed the sector witnessed stabilising conditions in the wake of the recession, something that may particularly interest operations management professionals in the field.

According to the Business Factors Index, production has moved ahead of other industries in terms of positive growth, with output climbing to 107.9 over the month.

In addition, levels of confidence among manufacturing companies showed improvement during the period in question and the index increased year-on-year from 84.9 in 2009 to 95.7 in June 2010.

Although there was a decline in economic momentum during the quarter to June compared with figures for March, Bibby''s UK chief executive Edward Rimmer said: "Promisingly, the Index indicates that there are some green shoots of recovery within the UK economy."

Recent data from the Confederation of British Industry revealed that the UK witnessed a sharp increase in manufacturing output during the three months to July 2010, rising to its highest rate in 15 years.

Sharp production plans may use operations management

Thu, 29 Jul 2010 16:52:00 GMT

Strategies such as inventory control techniques could be employed by electronics giant Sharp as it increases its manufacturing operations in the UK.

The company is planning to double its annual production capacity of solar cell modules at its plant in Wrexham, Wales.

According to the Japanese manufacturer, expanding its activities at the site to 500 megawatts will enable it to respond to a growing focus on environmental policies by governments around the world.

Production will double at the facility in order to meet rising demand for solar cells from December this year, with steady increases planned between then and February 2011.

Those considering obtaining a APICS qualification may be interested to learn that Sharp is placing an emphasis on "local production for local consumption" in order to reduce delivery times and enhance its cost competitiveness.

Latest data from the Office National Statistics showed a decline in the net rate of return among UK firms of two percentage points, with the manufacturing sector generating 6.4 per cent over the first quarter of 2010, highlighting the need for good operations management practices.

Manufacturing bills ''will expand with green legislation''

Wed, 28 Jul 2010 16:48:00 GMT

The government should assess its green policies to ensure that energy-intensive industries are not carrying the brunt of efforts to reduce the UK''s greenhouse gas emissions.

This is the view outlined in a new report, which suggests that manufacturers in sectors such as aluminium, ceramics, chemicals, steel and paper may bear more than their fair share of costs from efforts to tackle climate change.

Individuals concerned with sales and operations planning may be particularly interested in the warning issued by the Energy-Intensive Users Group (EIUG) in its new study that power bills could grow by as much as 141 per cent as a result of accumulating climate change rules.

According to the body, factory closures could result unless green legislation is reviewed and EIUG director Jeremy Nicholson stated: "As green tax structures stand today, energy intensive industries are carrying a heavy burden of policies to tackle climate change and reduce energy use."

Recent data from the Confederation of British Industry revealed that UK manufacturers witnessed a steep rise in output during the quarter to July 2010, with growth in both overseas and domestic orders during the period.

Business leaders welcome public sector austerity measures

Tue, 27 Jul 2010 16:55:00 GMT

The majority of firms believe that the government has taken the right action in tackling public sector expenditure and the UK''s deficit, a new survey has shown.

According to the poll by the British Chambers of Commerce (BCC), 64 per cent of respondents believed the balance of spending, tax rises and savings had been correctly set by the new Conservative-Liberal Democrat administration, although 67 per cent predicted their profits would be affected by cuts.

The organisation''s latest Monthly Business Survey may be of particular interest to those working in operations management as it has welcomed the austerity measures imposed by UK chancellor George Osborne in his recent emergency Budget.

Businesses questioned by the BCC stated that they would like to see the government prioritise spending in the areas of transport, access to finance and regional economic development.

"Limited spending will have to focus on areas that boost productivity," director-general of the body David Frost stated, adding that interest rates should remain low and red tape reduced in order to stimulate growth.

Recent figures from the Office for National Statistics suggested public sector net borrowing reached its highest point since records began during June 2010, totalling £15.2 billion.

UK firms ''falling behind US in human capital ROI''

Mon, 26 Jul 2010 15:22:00 GMT

Businesses based in the UK are lagging behind their US counterparts in terms of the levels of human capital return on investment (HC ROI) they generate, research has suggested.

A new report by PricewaterhouseCoopers (PwC) revealed that companies in Europe are slower to generate strong profits per employee, claiming this is partly because the system across the Atlantic is more flexible, something that may interest those involved with continuous improvement practices.

According to the study, Trends in Human Capital, HC ROI in the US grew by 19.8 per cent from 2002 to 2006, while the same factor expanded by 8.3 per cent in Western Europe and 4.6 per cent in the UK.

Richard Phelps, PwC human resource services partner, stated: "While many companies invariably made job cuts to survive the recession, some employers introduced cost saving initiatives with similar results but with less pain."

In related news, a series of business boot camps have been run for students by PwC in a bid to provide participants with experience and training in the field.

UK oil and gas sector ''has reduced operating costs''

Fri, 23 Jul 2010 16:22:00 GMT

The UK''s oil and gas industry has managed to push down its operating costs over the past year by six per cent.

Expenditure in this area totalled £6.6 billion for the sector, reducing its outlay per unit to $12 (£7.80) per barrel.

This is according to figures released by Oil & Gas UK, which has revealed that fiscal stability in the field has been enhanced by continuous improvement policies, attracting new investment in offshore projects.

A report by the industry body also showed total money spent by companies in the sector reached £12.3 billion in 2009, something that may interest operations management specialists in the field.

"We know that currently companies are considering developments which could lead to £60 billion of investment in new production over the next decade," Oil & Gas UK economics director Mike Tholen, who wrote the report, explained.

The membership agency represents over 100 companies in the energy industry that are active in the UK continental shelf.

Accelerated Lean Skills Programme

Fri, 23 Jul 2010 00:00:00 GMT

The Accelerated Lean Skills Programme

Date of Event         Tuesday 7 September 2010
Duration                  3 days
Venue                      Hunting Lodge Hotel, High Street, Cottingham, Market Harborough,
                                  Leicestershire

Details
The Accelerated Lean Skills Programme (ALSP) is a practical, interactive and fast moving programme designed to give managers the essential underpinning knowledge required to plan and run successful Lean programmes.

The key to success in Lean is as much about learning how to engage others as it is about the tools and the ALSP is designed to cover all the essential topics in an exciting and informative programme.
The course provides the essential underpinning knowledge to enable you to plan and implement your first Lean Events.

Broad Overview

Day 1: Lean essentials
Day 2: Redesigning pathways
Day 3: Making Lean work

Following the programme, on submission of a short project based on the content of the programme, participants will receive a formal certificate.

Detailed information is available in the ALSP brochure
Click here to download the ALSP Booking Form

To book, complete and return the booking form, or contact Membership Services. Tel: 01536 740105. Email: members@iomnet.org.uk quoting Booking Code: IOM046.

Manufacturing output ''reaches 15-year high''

Thu, 22 Jul 2010 20:06:00 GMT

The level of output from UK manufacturers soared to a rounded balance of +24 per cent during the three months to July 2010, its highest rate in 15 years.

This is according to new data published by the Confederation of British Industry (CBI), which showed that both overseas and domestic demand rose during the quarter, pushing up production levels.

In addition, business confidence in the sector improved, with a balance of 10 per cent of respondents more optimistic about the future than three months ago, boosted by better access to credit and finance and stabilising employment levels.

Those concerned with production and inventory control may be particularly interested to learn that enterprises operating in the field increased both their stocks of raw materials and finished goods during the period in question.

CBI''s chief economic adviser Ian McCafferty remarked: "Looking ahead, production is expected to rise further, but at a more moderate rate. In our view the risk of a double-dip recession remains low."

Last month, the UK was placed at number 17 in a list produced by Deloitte of the most dominant nations in the manufacturing sector.

Concerns over record public sector net borrowing

Wed, 21 Jul 2010 20:06:00 GMT

The revelation that public sector borrowing rose to a record high in June this year is "pretty disappointing", one expert has asserted.

Senior economist for the Ernst & Young ITEM Club Andrew Goodwin explained that recent months have seen more promising data on spending released and he warned that the latest figures underline "what an enormous job the chancellor has on his hands to try to regain control".

The latest Office for National Statistics report on public sector net borrowing showed that it totalled £15.2 billion last month, reaching the highest point since records first started in 1984.

Mr Goodwin outlined the pressures that exist on the government and those in the public sector to reduce the Budget deficit, which stood at £13.3 billion in June 2010.

He suggested that the June total may just be a blip, adding: "I think the outlook is stabilising, but equally we are not seeing things start to improve either."

The economist''s comments may interest those in public sector operations management who will be facilitating some of the substantial spending cuts being imposed by the Government in a bid to reduce the UK''s national debt.

UK firms witness decline in net returns

Tue, 20 Jul 2010 20:06:00 GMT

The net rate of return among businesses in both the UK services and manufacturing sectors declined during the first quarter of 2010 by two percentage points.

Compared with a figure of 11.3 per cent for the last three months of 2009, the period in question saw the total drop to 11.1 per cent across private non-financial corporations, highlighting the importance of effective operations management policies.

The data from the Office for National Statistics also revealed that there were broad variations between different sectors in the economy, with services companies recording a net rate of return of 14.4 per cent, while this number was 6.4 per cent for the manufacturing industry.

Excluding United Kingdom Continental Shelf firms, which returned 36.4 per cent in the first three months of this year, the net rate for enterprises was 10.2 per cent.

In a recent interview with the Telegraph, John Timpson, head of the Timpson chain of high street key cutters and cobblers, recently declared that firms should "look for continuous improvement" in order to remain ahead of their competitors.

Lord Sugar proposes UK subcontractor rules

Mon, 19 Jul 2010 20:06:00 GMT

Regulations should be put in place so that UK subcontractors have to be used by foreign energy suppliers operating in the wind turbine market.

This is according to Labour peer Lord Sugar, who stated during a recent House of Lords debate on low-carbon technology uptake that British firms should be employed by foreign suppliers in the green power sector.

He warned that British producers could miss out on the market if the government does not take action to protect the country''s interests, something that may be of note to those involved in manufacturing management.

The Apprentice star added: "No licences should be granted unless there is an undertaking that an agreed percentage of UK content and labour is used on the contract."

His comments come as figures from the Office for National Statistics revealed that the UK''s productivity increased year-on-year by 1.3 per cent per worker during the first quarter of 2010 and rose by 0.6 per cent compared with the previous three months.

Public sector ''may have trillions in debts''

Fri, 16 Jul 2010 20:06:00 GMT

The level of debt within the UK''s public sector could be as high as £4.84 trillion, a new report has estimated.

Written by the Office for National Statistics (ONS), the study indicated such liabilities could be considerably higher than government data, which places the country''s borrowings at £903 billion.

If this shortfall exists, it could mean additional work for operations management experts within the public sector, as the level of debt could be as high as £65,000 per person in the country.

Potential liabilities in addition to those already identified include pension obligations, stakes in UK banks, nuclear decommissioning costs and those linked to private finance initiatives, which have been compared by the ONS with the estimated value of state assets.

In order to address the nation''s high budget deficit, around 600,000 jobs are expected to be lost from the public sector by 2016, according to recent figures published by the Office for Budget Responsibility.

Discrete manufacturers ''reducing costs post-downturn''

Wed, 14 Jul 2010 20:06:00 GMT

A growing number of producers are focusing their efforts on boosting development and reducing costs following the global economic downturn.

This is the view expressed in a new report on discrete manufacturing, carried out by IDC Manufacturing Insights, which noted that this is particularly the case in western Europe and North America.

According to the study, the market is becoming increasingly complex, something that is viewed as a challenge by company leaders, with 52.8 per cent reporting their operations to be more complicated now than five years ago.

"Overall a lack of skills, business agility and access to accurate and timely information pose greatest barriers to achieving operational excellence," it concluded.

The research was sponsored by Infor and IBM and surveyed 722 senior executives in the industry, finding that leading concerns include driving down costs in order to ensure profitability of businesses, with innovation and new product development found to be particularly important in China and Japan.

Professionals concerned with improving manufacturing processes and demand planning may also be interested in recent figures showing the UK production industry witnessed a slowdown in its rate of expansion during June, as foreign demand for items eased.

Companies urged to focus on continuous improvement

Tue, 13 Jul 2010 20:06:00 GMT

Firms should not wait for an economic upturn, but should instead concentrate on ways in which they can reduce costs, cut waste and enhance efficiency.

This is the opinion expressed by John Timpson in an interview with the Daily Telegraph, in which he stated: "To keep ahead of the competition you must look for continuous improvement."

Chief executive of the Timpson chain of high street key cutters and cobblers, he explained that healthy balance sheets improve the long-term prospects of an enterprise, something that may interest those concerned with operations management.

The company head also noted that all organisations are facing the same difficult conditions and recommended that bosses remain positive but open about the conditions of the business.

His comments follow recent remarks made by Business News editor Michael Baxter, in which he advised companies to look to eastern markets such as China in order to take advantage of developing economies and boost exports in the wake of the recession.

Global services industry records June growth

Mon, 12 Jul 2010 20:06:00 GMT

The global services sector expanded during June this year, with activity increasing during the second quarter "at a solid pace".

This is according to the Institute for Supply Management (ISM), which noted the index for the industry dipped slightly from 55.4 in May to 53.8 last month, although it still remained above the 50 mark that indicates expansion.

Compiled by JP Morgan and Markit, the statistics also revealed most national service economies witnessed increases during June, although the rate of growth slowed in Britain and the eurozone, something that may interest operations management professionals.

A survey of 3,500 executives was conducted and showed the expansion of incoming new business globally for the tenth month in a row during June, while service sector employment rose over the period in question.

Commenting on the report, JP Morgan director of global economics co-ordination David Hensley suggested that the data "provided further evidence that growth of activity and new orders are starting to taper off".

Meanwhile, in the UK, the seasonally-adjusted index of production increased by 2.6 per cent year on year in May 2010, while the manufacturing measure was up by 4.3 per cent over the same period, according to the Office for National Statistics.

Services sector figures ''indicate best of recovery over''

Fri, 09 Jul 2010 20:06:00 GMT

The latest data for the UK''s services sector may be indicative of the country having "seen the best of the recovery" for the economy, one expert has asserted.

According to Capital Economics'' consumer and debt specialist Vicky Redwood, the most recent figures show a decline in the headline activity index has been taking place for three to four months, suggesting "this is more than a June blip".

She claimed that firms are becoming more worried about their future in part because of the emergency Budget and plans to raise VAT from 17.5 per cent to 20 per cent from early January.

Her comments follow the release of the most recent Purchasing Managers Index for services - produced by Markit and the CIPS - which fell from 55.4 in May to 54.4 in June, as activity increased at its slowest rate for ten months.

Those in continuous improvement and operations management roles may also be interested to learn that the measurement is substantially below a three-year high point reached in February, while confidence among firms in the sector dropped at its sharpest rate since the start of the survey.

Calling all West Midland members

Fri, 09 Jul 2010 14:14:00 GMT

Calling all West Midland members

Fri, 09 Jul 2010 00:00:00 GMT

What can you get from your IOM membership? The answer is as much as you want – but we need to know what you want!

It has been a while since we met as a region and it would be great to get together to explore what members want from their regional membership.

Since becoming affiliated with CILT, we have many more opportunities available to us now and it would be great to take advantage of our joint experiences and make the best of what we are beginning to see as an upturn, as well as a changed set of Government initiatives and the improvements in technology since the downturn started and gave developers the opportunity to review their offerings.

We would like to get groups of individuals together who are interested in various topics which they can explore with like-minded individuals – and perhaps at different venues around the region.

Are you interested? If so, please contact us with ideas of venues, if you would prefer daytime or evening meetings, and of course, what you want to gain from your IOM membership.

Please respond by the end of July, by contacting the IOM directly or Nadine Evans on 01952 247984.

UK firms advised to drop misconceptions about trade with Asia

Wed, 07 Jul 2010 20:06:00 GMT

Companies in the UK should not view Asia as simply a "low-cost, low-quality" production line, but should instead explore the potential of the "lucrative and growing market".

This is the opinion expressed by the chief representative for the Confederation of British Industry (CBI) in China, Guy Dru Drury, who stated that there are "continued outdated perceptions" about the region that may hinder firms from accessing chances there.

Those in sales and operations planning may be particularly interested in his comments, which follow a study by HSBC.

According to the bank''s research, just 14 per cent of enterprises in the UK are fully aware of the opportunities for expansion offered by east Asia and the institution advised companies to factor this into their strategic thinking.

Mr Drury suggested the report is a "timely reminder to UK business that genuine opportunities still exist" for organisations with the capabilities to "internationalise their operations" and meet expanding demand in countries such as China.

UK production ''should look east''

Tue, 06 Jul 2010 20:06:00 GMT

The manufacturing industry in Britain should look to the east, particularly in the wake of a dip in performance, an expert has suggested.

Investment and Business News editor Michael Baxter stated that the most recent fall in the Purchasing Managers'' Index (PMI) is not unique to the UK and warned "the US PMI is down and China''s has been falling for a while".

However, he suggested that producers in the country should "look towards some of the other economies in the far east" such as China in order to boost their export markets.

In comments that may particularly interest those in manufacturing management, Mr Baxter said companies should not "get too worried" about the drop in PMI and called for more to be done to boost trade outside the European Union.

Figures from Markit and CIPS showed a decline in the PMI last month from 58 to 57.5 as new export orders slowed, although any number above 50 is indicative of growth.

Range Rover celebrates lean manufacturing achievements

Mon, 05 Jul 2010 20:06:00 GMT

An extra 1,000 new jobs are expected to be generated at the Jaguar Land Rover Halewood plant on Merseyside.

The company has marked the 40th anniversary of its Range Rover marque with a party in London on July 1st at which its managing director Phil Popham stated that the facility "has a reputation for excellence and quality and is recognised throughout the industry as a leader in lean manufacturing".

He added that the brand has been successful since its launch in 1970 and the newest vehicle is "an important step for the future continued success and growth of the brand".

Those interested in manufacturing management may also be interested to learn that the north-west facility has been selected to produce the most fuel efficient model in the range.

During the London event, the new Range Rover Evoque coupe was unveiled and will be sold in 160 countries around the world.

The Confederation of British Industry recently reported that, despite a slight decline from May''s highs in June, the production industry in the UK appears to be recovering from the recession.

Africa gearing up for supply chain productivity and operational improvements

Mon, 05 Jul 2010 00:00:00 GMT

The Institute is delighted to announce the addition of IOM Africa to its growing regional network. Under the presidency of Dr Douglas Boateng FIOM FCILT and through the IOM Africa Region, operations and supply chain management professionals throughout Africa will benefit from the increased availability of world class and practical education, training and membership
programmes.

The IOM’s key qualifications framework moves professionals up through the IOM’s membership grades and corresponding post-nominal letters, which demonstrates
individuals’ professional credibility and commitment, wherever they are in their career. ‘IOM is the oldest focused professional body for manufacturing and services in Europe,’ says Dr Boateng. ‘I opted to partner IOM after a careful investigation of many professional bodies over a 24-month period, and believe it is the best available to transform operations and supply-chain-related human capital in Africa.’ Continuing, Dr Boateng says the establishment of IOM Africa was driven by pragmatic findings that emerged from its evaluation of other professional bodies: ‘IOM impressed on a number of essential features, including flexibility, practicality, focus and, more importantly, its successfully tried and tested human capital development formula,’ he explains.

From its perspective, IOM is excited to enter Africa with a seasoned supply chain professional with a proven track record, reach and competence. Leonie Edwards, Manager, IOM, notes: ‘The relationship with Dr Boateng reinforces our strategy to extend our professional reach in supply chain and operations, human capital development solution sets into manufacturing, service and public sectors in Africa and the emerging world.

Under Dr Boateng’s presidency, we look forward to assisting and supporting our current and future members in the region as they embark on major sustainable supply chain, operational and service delivery improvements within their respective organisations.’

Energy efficiency ''can generate significant financial gains''

Fri, 02 Jul 2010 20:06:00 GMT

Implementing energy efficiency strategies can place businesses at an advantage over their counterparts when new legislation comes in, it has been claimed.

Those employed in operations management and continuous improvement projects may be particularly interested in the comments made by Jim Haywood, Business in the Community environment director.

He explained that there is a "real incentive" to implement change in the form of the financial gains that green policies in the workplace can provide.

Addressing an online event entitled Retail Now, Mr Haywood added that companies could generate savings of £6,000 per year by turning off electrical equipment over the weekend, while other measures can provide savings equal to a five per cent sales boost.

The expert added: "Businesses who take these things seriously and manage their businesses well are going to be in a much better position to meet legislation like the CRC energy reduction commitment."

His remarks come after a report from the Committee on Climate Change called for a shift in attitudes to sustainability in the UK in order to ensure the country is able to meet its greenhouse gas emissions goals.

Scale of public sector job cuts revealed

Thu, 01 Jul 2010 20:06:00 GMT

As part of government efforts to enhance the efficiency of the UK''s public services, it has been revealed the sector is facing losses of around 600,000 jobs.

The scale of planned cuts was revealed by the Office for Budget Responsibility (OBR) and they are likely to take place over the next six years, with 490,000 completed by 2015.

However, the government has insisted that despite the reduction in the public sector workforce, there will be more people in work overall.

David Cameron explained during prime minister''s questions that full tables had been drawn up reflecting projected employment in both private and public organisations.

Continuous improvement and operations management programmes are likely to become increasingly important during the coming months, as the impact of cuts introduced in the emergency Budget on June 22nd by chancellor George Osborne is felt.

Established in May 2010, the OBR has been charged with assessing the economy and public finances independently and is currently chaired by Sir Alan Budd.

UK ''dips in global manufacturing index''

Wed, 30 Jun 2010 20:06:00 GMT

The ability of the UK to compete internationally in terms of production has been called into question by a new report.

According to the latest global manufacturing index from business advisory specialist Deloitte, the country has been placed at number 17 in a list of the most dominant nations in the field.

Developing nations dominated the top of the table, with China, India and the Republic of Korea the highest rated countries for competitiveness.

However, in relation to these, western Europe, the UK, Japan and the US are expected to witness a decline over the coming five years, with Britain forecast to fall from 17th to 20th place in the list.

Ranking the most significant drivers of the production market, Deloitte placed talent-led innovation in pole position, while UK operations management professionals may be interested to note that Germany and the US are included in the top ten.

David Raistrick, the firm''s UK manufacturing leader, suggested this is evidence that "the drivers of competitiveness are not just cost-based."

In related news, a report from the Advanced Institute of Management Research is aiming to challenge common myths about the production industry in order to better promote its benefits.

Private lessons ''could enhance public sector operations management''

Tue, 29 Jun 2010 15:27:00 GMT

Lessons learned by private businesses during the recession could benefit public sector agencies now that they are facing substantial spending cuts.

With the government aiming to reduce the expenditure of most departments by a quarter, operations management is likely to become an increasingly important feature of the industry.

This is why the Confederation of British Industry (CBI) has recommended to public sector bosses that they try to benefit from the efficiency savings that have already been implemented by their counterparts in commerce in the wake of the global downturn.

According to the organisation, it is important that employees are behind any changes that are instigated, while flexible working and engagement of staff can reduce job losses when cuts are required.

"With good communication and co-operation between public sector employers and unions, we hope to avoid the potential for industrial action," Richard Lambert, Director-General of the CBI, commented.

His remarks come after a poll for the body discovered engagement with workers was central to recovery from the recession.

Asking employees ''can enhance operations management''

Mon, 28 Jun 2010 14:07:00 GMT

Companies looking at ways to produce efficiencies and develop continuous improvement programmes should look to their workforces in order to do so.

This is the opinion of Angela Baron of the Chartered Institute of Personnel Development (CIPD), who noted such an approach is a "central plank of TQM [Total Quality Management] which has been around since the seventies".

She pointed out that providing a facility for employees to offer suggestions for improvements and what elements can be removed from processes can help to draw out ideas, something that may particularly interest operations management professionals.

"It''s worth having a variety of ways in which people can put their views forward through group discussion, or through writing it on a piece of paper and putting it in a box," the adviser said.

Ms Baron''s remarks follow an announcement by the government that public sector workers will be consulted about ways in which planned efficiency savings can be generated and levels of waste can be reduced.

Report attempts to dispel manufacturing myths

Fri, 25 Jun 2010 16:55:00 GMT

A number of myths exist about the UK''s manufacturing that need to be challenged, a new report has claimed.

Compiled by the Advanced Institute of Management Research (AIM Research), the study highlights a series of falsehoods that exist about the industry, such as that it is "a homogenous sector", value only lies in the products themselves and it is a low-skilled profession.

According to the organisation, the publication evolved from a forum held by AIM Research and the Confederation of British Industry and it recommended that the UK develops a "better understanding of the benefits" production companies can bring.

This is particularly important, it added, in order for the country to compete with manufacturing industries in Asian economies and other parts of the world, as recovery from the global downturn takes place.

Deputy director of AIM Research Andy Neely explained: "Today, manufacturers are not just producers they are also inventors, innovators, supply chain managers and service providers."

Individuals interested in improving manufacturing processes may also be aware that the Confederation of British Industry reported a slight monthly decline in productivity in June this year.

Budget reveals severe cuts to public sector

Fri, 25 Jun 2010 14:12:00 GMT

Government departments that have not had their funding protected will be expected to reduce expenditure by up to 25 per cent a year, with substantial job losses predicted.

The measure was unveiled by chancellor George Osborne as part of efforts to cut the UK''s high deficit and will have a severe impact upon the public sector.

Continuous improvement and operations management policies are likely to become more important than ever, as only NHS spending and overseas aid have been ringfenced.

In terms of pay, a freeze is being imposed on all salaries for two years, with the exception of those earning less than £21,000, who will have any rises capped at £250.

Mr Osborne also announced plans to reduce public sector pensions costs from 2011, stating: "The truth is that the country was living beyond its means when the recession came. And if we don''t tackle pay and pensions, more jobs will be lost."

NHS savings ''may benefit midwifery''

Fri, 25 Jun 2010 12:06:00 GMT

Reducing the number of people working in the management of midwifery services "should help" the field, although this "remains to be seen".

This is the view of Association of Radical Midwives admin secretary Sarah Montagu, who explained the sector is "a different case" to others within the NHS, as many targets imposed elsewhere cannot be applied to services.

Professionals concerned with operations management within the public sector may also be interested in her remarks that it "would probably be a good idea" to reduce tiers of management.

However, Ms Montagu warned there are shortages of midwives and clinical staff as birth rates rise and asserted that the current Payment by Results scheme needs to be overhauled as hospitals are currently paid more for caesarean sections than natural births.

Her remarks follow an announcement by health secretary Andrew Lansley that the NHS will focus on delivering efficiency savings, reducing management spending and altering the ways in which targets are applied as part of continuous improvement plans.

Companies ''should implement OPL strategies''

Tue, 22 Jun 2010 14:27:00 GMT

Firms in the UK should employ operations management strategies such as optimised packaging line (OPL) techniques for improving manufacturing processes, it has been claimed.

This is according to Andy Hodgson of Siemens Industry Automation and Drive Technologies, writing for the Engineer, who pointed out that many businesses had struggled during the recession and should put measures in place in its wake to ensure they prosper in the recovery.

The business sales manager advocated investing in OPL and assessing the whole of their operations in order to identify total cost of ownership related to any investment.

"By taking a full view of the site, manufacturers can see where processes can be made more efficient and productive and therefore, save them money," he declared.

According to Mr Hodgson, the OPL standardisation strategy provides improved line efficiency, cuts training costs, frees up capital and reduces downtime.

His comments come after figures from the Confederation of British Industry suggested production is recovering from the downturn, although there was a slight dip in demand during June compared with highs recorded the previous month.

UK production sector ''on a path of recovery''

Mon, 21 Jun 2010 12:29:00 GMT

The manufacturing industry in Britain is continuing to recover from the downturn, although figures from June saw a slight dip from highs recorded in May.

According to the Confederation of British Industry (CBI), the balance of companies claiming total orders had risen above normal levels was -23, compared with -18 per cent in May.

However, this is broadly in line with a long-term mean of -18 per cent and provides evidence that the "improving trend of recent months continues", with export orders remaining steady as a result of the improving global situation and the weak value of sterling.

"The manufacturing sector remains on a path of recovery, with conditions much improved on just a few months ago," CBI chief economic adviser Ian McCafferty stated.

With conditions improving, firms may now wish to invest in operations management in order to further enhance efficiencies within their businesses, particularly as the CBI data revealed a net 15 per cent of respondents expecting to increase production over the next quarter.

The statistics reflect a recent report from the Office for National Statistics, which showed a slight monthly fall in production output during April 2010.

NI private sector ''remains fragile''

Fri, 18 Jun 2010 14:00:00 GMT

Recovery within Northern Ireland''s private sector businesses remains fragile, as new figures show a fall in activity.

However, latest data from Ulster Bank showed the rate of decline is slowing, with levels measuring 47.5 in April this year, up from 47.1 the previous month.

The institution''s Purchasing Managers Index (PMI) - produced by Markit - monitors public sector activity levels in Northern Ireland, with any number above 50 representing expansion and the figures emphasise the need for strategies improving manufacturing processes in the region.

Within the production industry, output improved during the month while manufacturing orders saw their strongest increase since April 2007.

Business sector activity levels have fallen for five months in a row and Ulster Bank chief economist for Northern Ireland Richard Ramsey noted that the region is the only one within the UK that is still witnessing falls in output and unemployment.

"At a sector level, the most marked divergence between NI and the UK continues to be within the service industry," he added.

In related news, figures from Bank of Scotland recently revealed the country''s services industry saw a rise in services sector growth during May.

Lancashire firm reports export success

Thu, 17 Jun 2010 14:17:00 GMT

A company based in the north-west of England has reported it is planning to export its products around the world.

InfoServe365 is headquartered in Blackburn, Lancashire and specialises in solutions designed to enhance manufacturing efficiency, including its new business tool AssetManager.

The firm recently revealed it is now taking its lean operations management products overseas in order to assist companies in identifying potential improvements to plant productivity.

It was founded five years ago by Michael Hill and Adrian West, two engineers from the region who believed there was a gap in the market for a new monitoring and reporting system to boost efficiency without requiring a significant outlay of capital.

The pair of specialists created parent firm Optima Control Solutions in 1995 and used the experience they gathered in the field of drive control technology to move into the collection and analysis of managed data.

"Both Adrian and I have spent a great deal of time in industry, we have a passion for its survival and indeed its growth and we enjoy doing what we do," Mr Hill explained.

InfoServe365 recently created and installed a bespoke system to improve the operational equipment efficiency of a laminating machine used by packaging specialist Camvac at its Thetford site in Norfolk.

Scotland''s manufacturing sector growth ''boosts employment''

Wed, 16 Jun 2010 15:59:00 GMT

The expansion of the Scottish manufacturing industry has increased public sector employment, new figures have revealed.

Data from Bank of Scotland suggests the economy is returning to growth and the services industry also witnessed a rise during May this year, with strong recruitment figures as a result.

The purchasing managers'' index (PMI) for the month stood at 53.1, ahead of a level of 51.6 set in April, with any figure above 50 indicative of expansion.

Additionally, average input costs rose in May 2010, highlighting the importance of continuous improvement programmes and efficiency schemes.

Commenting on the figures, Bank of Scotland chief economist Donald McRae said: "After a worrying two-month period of decline, service sector activity has returned to growth in May, reporting a promising rise in new business for the first time in three months."

Operations management experts in both the production and services industries may also be interested to learn that the Confederation of British Industry has forecast economic growth in the UK of 1.3 per cent in 2010, an upwards revision from a previous prediction of one per cent.

Results of TPM claimed to be worth the effort

Tue, 15 Jun 2010 17:08:00 GMT

Total productive maintenance (TPM) is a simple concept capable of delivering results that are "worth the effort", an expert has claimed.

The editor in chief of website Plant Services stated he had spoken to professionals in the manufacturing field who had been pleased with the impact of TPM strategies on their business.

According to Paul Studebaker, production and maintenance personnel can collaborate to produce operations management improvements that minimise costs and maximise efficiency simply by establishing a dialogue and altering working habits.

He said that TPM "is simple, but not easy, at least, not in a traditional manufacturing environment", but added that it could make the difference between survival and failure in the current competitive environment, enhancing job security and boosting productivity.

Those concerned with continuous improvement measures may be interested in employing TPM in order to reduce wastage, reduce costs, increase staff morale and improve the maintenance of plants and equipment to increase their longevity.

People call for public sector cuts over tax rises

Mon, 14 Jun 2010 15:06:00 GMT

Britons would prefer to see cutbacks and greater efficiencies delivered in public services rather than see their tax bills increase.

This is the finding of a new poll, which indicated that the most popular strategies to cut the country''s debt include reducing wage bills for top earning civil servants and reducing staffing numbers, in addition to freezing pay and recruitment in the sector.

Conducted by BPIX for the Mail on Sunday, the survey also discovered the optimum reduction in public expenditure cited was £130 billion, over double the proposed drop.

The Conservative-Liberal Democrat coalition government is planning to reduce annual spending by £60 billion in an exercise that could benefit from the skills of operations management specialists.

It is a response to the UK''s high budget deficit in the wake of the financial markets crisis and will take the form of a series of cuts to the public sector.

Last month, the Confederation of British Industry made a series of recommendations to the new government including advice regarding an overhaul of public services such as freezing pay for two years and using private and third sector organisations for delivery.

Surprise dip in UK manufacturing

Fri, 11 Jun 2010 17:11:00 GMT

Following a period of strengthening production in the UK, latest figures have indicated there was a slight dip last month.

First quarter data for the manufacturing sector has revealed April witnessed a month-on-month fall in output of 0.4 per cent.

This was in contrast to analysts'' predictions of a rise over the period and followed growth of 2.2 per cent during March.

However, those involved in manufacturing processes may be interested to learn that some experts remained relatively upbeat, despite the disappointing results.

IHS Global Insight analyst Howard Archer commented that the report "does not mean that the manufacturing sector''s recent fine run is coming to an end.

"Rather, it needs to be seen as a correction after a particularly strong jump in output in March."

In related news, a study from organisation EEF and accounting firm BDO recently indicated that UK manufacturers are more optimistic about their future prospects.

Operations management prizewinner cuts energy consumption by 50%

Thu, 10 Jun 2010 13:47:00 GMT

A European Union (EU) prize has been given to a pair of German companies for a system that reduced energy consumption by 50 per cent.

Zenergy Power and Bultmann won the Process title at the 2010 European Business Awards for the Environment, for the development and application of a new technology "that makes an outstanding contribution to sustainable development".

By employing magnetic billet heating based on superconducting technology, a project run by the two firms cut energy consumption rates by 50 per cent by enhancing the efficiency of "one of the most power-intensive processes" in metals manufacturing and boosting productivity.

Announcing the winners in the 2010 contest, EU environment commissioner Janez Potocnik commented that organisations presented with awards have been "demonstrating clearly their innovative abilities and the economic sense of applying eco-technologies and processes".

Zenergy Power is a superconductor technology specialist and Bultmann is a producer of bar and tube mill equipment.

Manufacturers ''more confident and planning for the future''

Wed, 09 Jun 2010 13:35:00 GMT

Britain''s manufacturing companies are increasingly confident that "we are not heading for doom and gloom" and "are planning for the future".

This is the view of an expert in the field, who claimed firms are responding the rising demand in a range of different sectors, from consumer goods to "industrial-size pharmaceuticals".

Director and co-founder of specialist consultancy Newton Andrew Hawes explained: "We are working in factories that are out of capacity and that''s not been the case for three years."

He said the focus of manufacturing management was no longer on reducing costs and stock levels, but on increasing capabilities, although businesses are still cautious about investment.

Mr Hawes'' comments are reflected in a survey by the manufacturers'' organisation EEF and BDO, which found new order balances and output rose by record levels of 34 per cent and 30 per cent respectively during the second quarter of this year.

Services sector continues to stabilise

Tue, 08 Jun 2010 17:36:00 GMT

The UK''s services sector saw its growth stabilise during May this year, a new report has indicated.

According to the latest purchasing managers'' index (PMI) for the industry, it held steady at 55.4 over the month, compared with 55.3 in April 2010.

Services growth has remained above the 50 mark that denotes expansion for 13 months and levels of new business have been increasing recently.

However, the data from Markit and the CIPS show the index was at its weakest level for nine months in May, with companies reducing hiring in order to cut costs.

"Worries are likely to be exacerbated by expected fiscal tightening in the coming months, though austerity measures could help to dampen inflationary pressures," Markit senior economist Paul Smith predicted.

As the future for the services sector remains uncertain, individuals may wish to consider taking a CPIM exam or an APICS qualification, particularly as rating agency Fitch recently issued a warning about the "formidable fiscal challenge" facing the UK in reducing its budget deficit.

Confidence ''improving in UK production sector''

Mon, 07 Jun 2010 16:20:00 GMT

The manufacturing industry in the UK is becoming increasingly optimistic about its prospects for the future, new research shows.

A study by published by accounting firm BDO indicates trading conditions improved for producers over the three months prior to a poll being carried out, with output and orders balances reaching record highs since the survey started in 1995.

The second quarter Manufacturing Outlook, compiled with organisation EEF, suggests demand is increasing both within the UK and in overseas markets, pushing up trade and creating new jobs.

Commenting on the results, BDO head of manufacturing Tom Lawton states: "These are a good set of results, especially as the manufacturing sector is still getting to grips with the uncertainty of the new coalition government."

He believes companies in the industry want the new Conservative-Liberal Democrat administration to tackle the budget deficit, enhance competition, support mid-market operators, promote investment in emerging technologies and consider the needs of traditional companies.

His remarks may interest those seeking operations training courses, as could recent figures from CIPS/Markit showing the manufacturing purchasing managers'' index remained stable at a record high of 58.0 in May this year.

Manufacturing management shows "slow growth"

Fri, 04 Jun 2010 16:42:00 GMT

Jobseekers looking to break into the manufacturing management industry may be pleased to hear the sector is enjoying some growth.

The Economic Times reports that organisations based in Britain contributed to the PMI headline activity index which recently rose to 55.3 during April.

Employers in France have enjoyed the biggest success with the quickest growth in almost four years during May.

All countries in the eurozone have helped boost the sector in the Markit Eurozone Services Purchasing Managers'' headline business activity index, the publication continues.

Figures rose to 55.6 overall in April after a consecutive nine months of similar activity which "separates growth from contraction and slightly higher than a preliminary reading".

Those looking for success in the manufacturing industry could do well to work together with colleagues and other businesses, according to one expert.

Derek Gillespie from the Engineering and Physical Sciences Research Council claimed focusing on new technology and research for the future is necessary for success.

Jobs in manufacturing management could benefit from CCS technology

Thu, 03 Jun 2010 12:13:00 GMT

A new study aims to investigate the capabilities of carbon capture and storage (CCS) technology, which could help people working in manufacturing management.

The Energy Technologies Institute (ETI) will spearhead the campaign in a bid to help reduce carbon dioxide (CO2) emissions in industrial sites as well as in power stations and plants.

"Mineralisation potentially provides a permanent storage method, the CO2 could be converted into a useful end product and it could provide an opportunity to use waste materials," said chief executive of ETI Dr David Clarke.

The innovation may enable CO2 to be contained underground instead of being released into the atmosphere.

Dr Clarke added it might benefit transport, engineering and heat industries - particularly in areas where alternative storage opportunities are not available.

News of this investment follows an announcement that ETI has arranged a plan to implement electric vehicles and power supplies for use in the UK.

Investment could secure manufacturing management jobs at GM Canada

Wed, 02 Jun 2010 16:05:00 GMT

Improving manufacturing processes at a General Motors (GM) Canada plant could be achieved since some $245 million (£167 million) investment has been secured.

Facilities for producing fuel-efficient cars with six-speed gearboxes will be implemented at the St Catherines Powertrain plant in Ontario and 400 jobs have been protected.

Kevin Williams, president and managing director of GM Canada, said: "Customer demand for our new vehicles is driving improved financial results and the rapid capacity expansion underway."

News of this cash boost follows an announcement that the company also received $235 million to improve "next generation" technology and work on this should begin in 2013.

Thanks to both figures, a total of 800 jobs in the industry have been saved - which could include roles in operation management or production and inventory control.

Meanwhile, the Chevrolet Cruz - one of GM''s models - has benefited from an innovation which makes oil and filters easy to change and dispose of.

Communication ''can enhance operational performance''

Tue, 01 Jun 2010 16:58:00 GMT

A fundamental aspect of good organisational performance is communication, an expert has declared.

This is the view of Institute of Leadership and Management senior policy and research manager David Pardev, who claimed defined structures must be in place to ensure information is effectively shared down the line.

"It is important for leaders to be able to trust their managers to communicate effectively with their teams and to pass on important organisational information," he explained.

Mr Pardev''s comments may be of interest to operations management experts implementing continuous improvement programmes, as he asserted company leaders should not be required to over-communicate or micromanage organisations.

The expert''s comments come after a study by Ashridge Business School indicated not enough time is being spent by many at the top levels communicating with staff.

Additionally, the research discovered 51 per cent of respondents did not believe top bosses provided workers with clear information and guidance.

Key to manufacturing success is "working together"

Fri, 28 May 2010 16:48:00 GMT

The best way for the UK to ensure the success of its manufacturing sector is to ensure that companies form partnerships, it has been suggested.

An expert from the Engineering and Physical Sciences Research Council (EPSRC) explained: "Working together is key."

Speaking at an event arranged by Cranfield University in the south of England, Derek Gillespie added: "We need to focus on our current strengths and the supporting research that will underpin the emergent technologies of the future."

His comments were echoed by head of the institution''s manufacturing department Professor Rajkumar, who highlighted the potential role the industry can play in the UK''s economic recovery by identifying and capitalising on particular strengths that exist in the country.

Collaborations with universities could assist with operations management, as well as providing an opportunity for testing and research of new technologies.

The manufacturing sector was credited recently with pushing up gross domestic product growth in the UK by 0.3 per cent during the first three months of this year.

Innovations ''deliver Burberry inventory savings''

Thu, 27 May 2010 14:45:00 GMT

Clothing brand Burberry has announced that it has implemented a series of inventory control techniques to deliver cost savings across its global network.

The company has revealed it has made a series of improvements to its supply chain under an international cost efficiency programme that reduced spending by £50 million in the 2009-10 financial year.

"Tighter assortments, improved planning and the global buy initiative all helped reduce year-end inventory by 36 per cent to £167 million," it stated, reporting a 22 per cent increase in operating profit to £219.9 million.

"Enhanced replenishment and assortment processes contributed to gross margin improvement."

This was in spite of retail space growing by nine per cent during the 12 months and the luxury goods firm is planning further investment in its supply chain over the next 12 months, as it continues to expand its operations.

Burberry, founded in Basingstoke in 1856, is implementing a continuous improvement scheme to enhance its womenswear, menswear, non-apparel and childrenswear units.

Manufacturing gains push up GDP growth

Wed, 26 May 2010 13:08:00 GMT

The UK''s economy expanded by 0.3 per cent during the first quarter of 2010, driven up by increases in manufacturing.

Figures for the three months to March have been revised upwards by the Office for National Statistics (ONS) from gross domestic product growth of 0.2 per cent.

The data indicates the economy is recovering from the recession and follows a 0.4 per cent gain in the fourth quarter of 2009.

Over the first quarter of the year, manufacturing increased by 1.2 per cent, its highest jump for four years.

Commenting on the latest figures, Lloyds TSB Corporate Markets'' Adam Chester told the Guardian: "The key underlying message here is that we are seemingly seeing some rebalancing away from consumer spending towards industrial production."

Those considering taking an APICS qualification may also be interested to learn that the Confederation of British Industry has credited strong export order books with boosting production in the UK.

Opel implements operations management programme

Tue, 25 May 2010 17:30:00 GMT

Carmaker Opel has revealed it has agreed on a new Plan for the Future, which includes a continuous improvement programme.

The organisation will implement operations management measures in order to deliver a range of cost savings, with agreements being put in place at sites across Europe.

Representatives of workers and managers have approved the framework agreement, which is intended to provide the firm with a "sustainable future".

It covers the development and launch of new models - including a new small vehicle - in addition to a plan to become an incorporated entity.

Job cuts will take place as part of the cost reduction arrangements and restructuring, while a series of investment and production commitments are made by the firm in return.

"In the end, everyone involved had the best interests of the company in mind," Opel chief executive Nick Reilly said.

"Now we have a common base for profitable growth."

The German automobile group, part of global producer General Motors, recently revealed orders for its new five-door Astra exceeded 150,000 five months after its launch.

Private sector policies could preserve public sector jobs

Mon, 24 May 2010 16:26:00 GMT

Introducing similar policies to those employed by private companies during the recession could protect some jobs in the public sector.

This is the opinion of a new study by the Confederation of British Industry (CBI) and Harvey Nash, which declared the government should use the experience of industry to its advantage.

Ministers have warned that the public sector could face significant jobs cuts, however a poll by the organisation found many business leaders believe better operations management and engagement of workers could safeguard positions.

The body''s deputy director-general John Cridland commented: "Drawing on the experience of the private sector in engaging employees during the recession to deliver much-needed change could help the public sector minimise the pain of spending cuts."

A total of 91 per cent of the respondents to the survey reported they communicated the effects of the recession to their staff members, with 54 per cent stating workers had been flexible in their attitude to changes to working patterns.

The CBI has also advised in a report entitled Time for action: Reforming public services and balancing the budget that widespread reform of the public sector and a two-year wage freeze is required in the UK to help restore economic health.

Business leaders call for public sector overhaul

Fri, 21 May 2010 15:17:00 GMT

The public sector in the UK needs an immediate overhaul and there should be a two-year pay freeze, it has been advised.

According to recommendations made by the Confederation of British Industry (CBI), more needs to be done to tackle government spending, something that may require the services of operations management specialists.

In a new report entitled Time for action: Reforming public services and balancing the budget, the organisation suggested public services should be "re-engineered" to protect frontline services while reducing costs.

"Experience suggests that the best way of bringing down a substantial deficit without damaging growth is through spending restraint rather than raising taxes," CBI director-general Richard Lambert said.

Additional policies for continuous improvement advocated by the organisation include using the private and third sector for delivery of services, reshaping health and social care, cutting waste, improving workforce management and combining purchasing power.

Other bodies such as the Recruitment and Employment Confederation have also urged the new Lib Dem-Conservative government to concentrate on sustainable reform of the public sector.

Call issued for more efficient transport demand management

Thu, 20 May 2010 11:31:00 GMT

Transport operators need to improve the efficiency of their demand management policies in order to cope with rising levels of demand.

This is the assertion of PricewaterhouseCoopers (PwC), which has released analysis claiming financial constraints and bottlenecks are hampering the industry.

In the Transportation & Logistics 2030 report, the organisation and its partner the Supply Chain Management Institute of the European Business School stated significant challenges face companies in the industry over the next two decades.

Based on the Delphi survey in more than 29 countries, it compiled the views of experts on the subject and posited provision of transport infrastructure will continue to be dominated by industrialised countries.

According to PwC global transportation and logistics leader and partner Klaus-Dieter Ruske, financing problems occur at all levels and both public and private sectors must find ways of addressing these.

Rising UK production could place further pressure on operations management specialists, as the Office for National Statistics'' index of production increased by two per cent year-on-year during March.

Overseas demand ''boosts UK manufacturing''

Wed, 19 May 2010 17:00:00 GMT

Growing demand from other countries for goods produced in the UK has boosted the country''s manufacturing sector.

This is the assertion of the Confederation of British Industry (CBI), which suggested that strong export order books are helping the industry to recover from the recession.

New figures from the business organisation indicate foreign demand for British manufactured items has held up production, as domestic demand is improving at a slower rate than international markets.

This led to a balance of plus three per cent in the number of companies reporting a rise in orders compared with a fall in the latest CBI monthly Industrial Trends Survey, the first positive result in more than two years.

Manufacturing output is expected to grow over the next quarter and CBI chief economic adviser Ian McCafferty remarked: "The weak pound has made UK exports more attractive and manufacturers are benefiting from the pick-up in world trade."

Operations management professionals considering taking a CPIM exam may also like to note the Office for National Statistics manufacturing index for March climbed by 3.3 per cent year-on-year.

Call made for sustainable reform of public sector

Tue, 18 May 2010 12:46:00 GMT

The new Lib Dem-Conservative government should ensure it focuses on "sustainable reform" when it introduces cuts in the public sector budget, one organisation has declared.

According to the Recruitment and Employment Confederation (REC), reductions in public spending should not be indiscriminate.

Ministers have been urged by the body to employ good operations management aimed at continuous improvement of the sector rather than simply pushing down staffing numbers and agency spending.

The government aims to reduce its expenditure by £6 billion over the coming year and the REC has launched its Public Sector Resourcing campaign for new skills, well-considered cuts and flexible staffing arrangements.

Its director of external relations Tom Hadley warned: "The need to reduce public expenditure is a given, but knee-jerk cuts would result in an unravelling of front line services."

Recent disappointing unemployment data caused the REC to call on the government to focus on job creation and labour market flexibility in order to boost the national workforce.

Change in attitude key to improving manufacturing processes, expert says

Mon, 17 May 2010 17:45:00 GMT

An expert has claimed that one of the best ways to go about improving manufacturing processes could be a change of attitudes in the business world.

Ruth Lea, economic advisor to the Arbuthnot Banking Group, writing for the Telegraph, said that the importance of this sector, which counts for 10 per cent of total employment in Britain, must be acknowledged.

Furthermore, she asserted, better vocational pathways toward a job in this industry should be created in educational institutions.

"The lack of craft skills in school-leavers is a constant complaint of business in general and manufacturers in particular," Ms Lea remarked.

She also encouraged macroeconomic policy makers to aim to avoid over-valuation of the pound, as well as removing or reducing current climate change surcharges on electrical use by industries.

Recent figures released by the Office for National Statistics revealed a climb in the manufacturing index by 3.3 per cent year-on-year through March.

Importance of operations management in pharmaceuticals highlighted

Mon, 17 May 2010 16:09:00 GMT

The need for the pharmaceutical sector to enhance the efficiency of its research and development activities has been highlighted in a new report.

According to the study by GBI Research, IT solutions and externalisation of processes have the potential to enhance return on investment within the industry.

The business intelligence specialist notes approaches aimed at improving productivity such as consolidation, restructuring, outsourcing research and better lifecycle management of drugs have not had a substantial impact on ROI.

Entitled Pharmaceutical Research and Development (R&D) - Increasing Efficiency through Information Technology and Externalization, the study provides information on continuous improvement programmes in the sector and advocates wider use of such measures in order to boost efficiency.

The research notes that R&D ROI has been in decline since 1996, while rising expenditure has not been reflected in the number of new drugs approved in the US, making good operations management more important than ever.

Figures from the Department for Business, Information and Skills indicate the UK''s pharmaceutical industry is the country''s biggest investor in R&D by sector, responsible for an estimated £3.3 billion of expenditure in 2009.

Assessment Authors, Markers and Moderators Required

Mon, 17 May 2010 00:00:00 GMT

The IOM will now be offering two assessment routes - the Centre Assessment Route, in which the Centre devises the method of assessment, and the Institute Assessment Route, where assessment is set by the Institute.

As a result of introducing the Institute Assessment Route, we are currently looking for Assessment Authors, Markers, and Moderators for all units for the Certificate, Diploma and Advanced Diploma.

For this route we will be holding two assessment series per year, most likely in March and September.

Below is the list of units for each level:

Certificate:
Unit C1 - Business for Operations Managers
Unit C2 - Demand and Supply Chain Management
Unit C3 - Improvement Techniques for Operations Management

Diploma:
D1 - Operations Management Strategy
D2 - Operations Resource Management
D3 - Business Excellence for Operations Management
D5 - Supply Chain & Inventory Management
D6 - Enterprise Planning for Operations Management
D7 - Manufacturing Planning
D8 - Added Value for Manufacturing
D9 - Operations Management Project

Advanced Diploma:
Project (only marking & moderating expertise required)

These positions are not full time, nor would the personnel become employees of the Institute. The work is likely to suit professionals – probably self-employed – who are able to work flexibly.

If you are interested in supporting the IOM in this capacity, please contact Maureen McAstocker, Assessment Co-ordinator on 01536 740164 or via email; maureen.mcastocker@iomnet.org.uk

Lean management in manufacturing advocated

Fri, 14 May 2010 14:23:00 GMT

A new approach to management in the manufacturing industry has been recommended by a new report.

Based on research carried out by an expert from the University of Leicester School of Management, it advocates lean operations management practices in order to deliver continuous improvement.

According to the study, "quality management means lean management" and as such measures boost levels of productivity.

Author Professor Stephen Wood and his colleague Lilian de Menezes of the Cass Business School in London covered 22 years with the study, highlighting the benefits they found to be generated by policies such as intensive training and development, supply chain partnering, Total Quality Management and empowerment.

"We found that the pioneers of the high lean approach continued to outperform even those that subsequently adopted it," Professor Wood explained, adding that employee engagement "achieves its aim of continuous improvement".

Those interested in gaining an APICS qualification may also be interested to learn the UK''s manufacturing index rose 3.3 per cent year-on-year in March.

Government public sector cuts ''will boost outsourcing''

Thu, 13 May 2010 14:31:00 GMT

Those working in the public sector and facing spending cuts as a result of plans to reduce the UK''s budget deficit should outsource to the private sector, it has been suggested.

According to Interim Partners, a planned reduction in expenditure by the new Conservative-Liberal Democrat coalition administration following the May 6th General Election will lead to a rise in outsourcing.

The news may particularly interest those working in operations management within local and national government and people involved in a programme of continuous improvement, as a poll by the organisation found 29.7 per cent of interim executives believe the government should prioritise outsourcing more Whitehall functions to the private sector.

Other areas of focus proposed by respondents included greater investment in IT to reduce staffing levels (21 per cent) and imposing tougher or more targets (20.6 per cent).

Interim Partners managing director Doug Baird advised: "However deeply the next Government decides to cut public sector spending, savings need to be balanced against service quality."

UK manufacturing index rises in March

Wed, 12 May 2010 17:00:00 GMT

The latest official figures reveal a climb in the manufacturing index by 3.3 per cent year-on-year during March.

It contributed to a two per cent climb over the 12 months to March 2010 of two per cent in seasonally adjusted industrial output in Britain.

According to the Office for National Statistics'' data, nine out a total of 13 sub-sectors in manufacturing witnessed growth during the period in question, with the highest rise of 16.9 per cent recorded by the transport equipment industries.

The strong performance of the transport equipment sector was boosted by a 52.3 per cent gain in motor vehicles production.

In addition, production and inventory control professionals may also be interested in a climb of 4.6 per cent within basic metals and metal products manufacturing, with the cutlery, tools and general hardware sector performing particularly well.

Further growth may be seen in output as a new report has revealed year-on-year home sales of manufactured products rose by 5.7 per cent in April, expanding from a five per cent rise in March.

UK ''can innovate in manufacturing''

Tue, 11 May 2010 16:53:00 GMT

Britain''s manufacturing businesses can innovate by "thinking of things that no-one else does and building those", one expert believes.

This is the opinion of business author Sahar Hashemi, who suggests the UK can compete against cheaper countries by developing unique areas of production.

The enterprise guru''s comments may be of particular interest to those concerned with improving manufacturing processes and operations management.

Ms Hashemi also highlighted the importance of investment in small to medium enterprises, which she said was "crucial" to the future of the economy and its recovery as they "contribute around 41 per cent to our national income".

Ms Hashemi''s comments follow the latest figures from the manufacturing Purchasing Managers'' Index for April 2010, which show export growth reaching a record peak and the index climbing to its highest level since September 1994.

It stood at 58 in April, with any figure above 50 representing growth, rising from 57.3 in March.

Communication between firms and suppliers ''boosts strategic advantage''

Mon, 10 May 2010 13:27:00 GMT

Improving communication between an organisation and its suppliers can provide it with a greater strategic advantage, a new report claims.

The study by researchers at the Bristol Business School at the University of West England is the fifth in the Office of Government Commerce-commissioned annual I-Series documents.

It highlights the centrality of price, quality and delivery to all relationships between bodies and their suppliers, the increased importance of other factors such as compatibility and technical knowledge, as well as the decline in certain other issues including geographical proximity.

Entitled I-Relate, it is intended to provide operations management professionals involved in such relationships with a best practice guide to boost information flow, covering sectors such as manufacturing, health, retail and local government.

Director of procurement at Oracle UK Andrew Douglas remarked: "Suppliers take note, this research signals the increasing stringency with which procurement departments are approaching the process of awarding contracts."

Meanwhile, the latest Purchasing Managers'' Index for the UK''s manufacturing sector rose to its highest level since October 1994 this April, with the export market boosting new orders.

Supermarkets helping to improve manufacturing processes

Fri, 07 May 2010 10:31:00 GMT

The popularity of green technology among UK supermarkets is helping to boost sales of environmentally-friendly products and bring manufacturing costs down.

That is according to Climate Change Capital Private Equity (CPE), a fund that invests in low-carbon initiatives, which claimed that pressure for the big chains to reduce their emissions is going some way to improving manufacturing processes.

Speaking to the Guardian, the fund said that one of its clients, LED producer Nualight, has recently received more money from the organisation after signing contracts with Tesco and the Co-operative.

Alex Hanrath, an associate director at CPE, said: "There is generally strong (and real) interest in doing this from the retailers."

Ultra Green founder and group executive chairman Tony Blakely recently claimed that manufacturers of green technology in the UK should be given greater government support, adding that more needs to be done to ensure that production of devices linked to sustainable energy remains in Britain.

Service industries can improve operations management

Thu, 06 May 2010 12:59:00 GMT

When it comes to low-carbon initiatives, it is not just the technology and manufacturing industries that can make a difference, one expert has said.

Speaking at an industry gathering at the House of Lords this week, Gavin Patterson, chief executive of BT Retail, claimed that by altering operations management service sector companies can also help the environment.

According to Edie.net, Mr Patterson claimed that too much focus is placed on improving manufacturing processes when the services industries also have a key role to play in combating the effects of climate change.

"Let''s make sure that we talk about manufacturing but we also seize the opportunity around services. There are as many opportunities around services as there are in manufacturing," he said.

Recent Office for National Statistics figures showing preliminary estimates for the UK''s gross domestic product in the first quarter revealed that the economy grew by 0.2 per cent in the period, being held back by a poor performance in the services sector.

Car manufacturers ''marketing green cars as cheaper to run''

Tue, 04 May 2010 17:29:00 GMT

Car manufacturers are increasingly looking to produce environmentally-friendly vehicles - not for the good of the planet but for price efficiency.

According to Will Powell of Cleangreencars.co.uk, companies have worked out that the recession prompted motorists to look at green cars as vehicles which were cheap to run.

Now manufacturers are apparently marketing ecologically-conscious motors as such, rather than focusing on their planet-friendly credentials.

Mr Powell pointed out the recession took its toll on car businesses, so it makes sense they are hoping to recoup their losses through taking advantages of the lower costs of ecological vehicles.

However, these motors are often more expensive to buy because of the different technology employed in their manufacturing, he added.

Mr Powell''s comments come as a survey by Carmony.co.uk revealed that 84 per cent of car customers said price was their deciding factor, while there was an increase in those who named themselves as indifferent about the environmental impact of a vehicle.

EU commissioner advocates resource efficiency

Thu, 29 Apr 2010 16:54:00 GMT

Operations management professionals may be interested in a recent speech made by the European Commissioner for Environment regarding the importance of resource efficiency in tackling climate change.

Janez Potocnik has declared such practices can deliver a greener economy in addition to reducing costs as part of a programme of continuous improvement within businesses.

Speaking at a conference on the environment, he highlighted the benefits of resource efficiency in reducing the impact of the 500 million people in Europe on the environmet.

Addressing delegates in the Hague, Mr Potocnik stated: "A resource efficient outlook would mean looking at new practices and new business models, which could make the best use of and recover value from the waste we can''t avoid producing".

He also called for measures to go beyond reducing energy consumption and eco-innovation in order to deliver substantial cuts in the level of resources used within the European Union.

Recent comments made by Michael Webb, client services manager at the Green Consultancy, who advocated reducing carbon footprints through efficiency policies, something which production and inventory control could assist with.

Sluggish services sector constrains UK growth

Wed, 28 Apr 2010 13:10:00 GMT

The expansion of the UK economy has been held back during the first quarter of the year by the poor performance of the distribution, hotels and restaurants sector.

In its gross domestic product (GDP) preliminary estimates for the first three months of 2010, the Office for National Statistics claimed the economy grew by 0.2 per cent in total compared with the previous quarter, but was 0.3 per cent lower than the same period of 2009.

These figures reflected growth production output of 0.7 per cent, while services activity was up by just 0.2 per cent over the three months.

Output in the distribution, hotels and restaurants sector fell by 0.7 per cent, down from growth of 1.9 per cent in the previous quarter, but two per cent higher year-on-year.

Operations management professionals may be required to boost performance in services businesses as the sector continues to feel the impact of the global downturn.

Meanwhile, the rise in GDP output in the quarter to March was boosted by the strong performance of the business services and finance industry, which expanded by 0.6 per cent in the first quarter.

Earlier this month, a study by Lloyds TSB indicated optimism among services firms in the UK had risen to a balance of 51 per cent.

Manufacturers see energy prices stabilise

Tue, 27 Apr 2010 15:05:00 GMT

Relatively stable prices for electricity, gas and oil are being seen by producers in the UK at present following significant fluctuations over recent months.

This is the conclusion of accountants and business advisers BDO LLP, which suggests peaks and troughs have placed additional pressure on manufacturers already affected by the global economic downturn.

However, the organisation warns that the current situation may be the "calm before the storm" and head of manufacturing Tom Lawton states the "stakes are particularly high at this stage", calling for greater clarity of guidance from the government about low-carbon initiatives.

Operations management experts are also advised BDO''s latest Quarterly Manufacturing Energy Tracker also notes the manufacturing sector is being subjected to a growing wave of legislation - including the Carbon Reduction Commitment and the European Union Energy Trading Scheme - as the UK moves towards a more sustainable economy.

Founder and group executive chairman of Ultra Green Tony Blakely recently called at a roundtable industry discussion for UK manufacturers of green technology to be provided with greater government support to boost production of sustainable devices.

Call for action on green manufacturing

Mon, 26 Apr 2010 17:04:00 GMT

Manufacturers of green technology in the UK should be given greater government support, it has been claimed.

This is the view of Ultra Green founder and group executive chairman Tony Blakely, who has suggested more needs to be done to ensure that production of devices linked to sustainable energy remains in Britain.

Speaking at a roundtable discussion by industry specialists and politicians, he warned power shortages could take place in the UK unless green manufacturing is promoted more stridently.

The expert explained that there was a real risk of power scarcity in the future, but insisted that "we have a unique and high value product and there is a massive market in Europe, a huge manufacturing opportunity for Britain".

Those involved in improving manufacturing processes and demand planning could be interested in Mr Blakely''s forecast that further investment in wind tower production could generate up to 100,00 new jobs in the UK.

Hosted by Ultra Green, the Green Collar Economy Forum examined ways in which growing demand for renewable energy could be used to boost the manufacturing industry.

Upturn in UK manufacturing continues

Fri, 23 Apr 2010 11:15:00 GMT

The UK''s manufacturing industry is continuing to demonstrate signs of recovery from the recession, new figures indicate.

According to the latest data from the Confederation of British Industry (CBI), exports witnessed a further rise over the last quarter with firms reporting a balance of +20 in new orders, the highest level since July 1995.

In addition, the first growth was seen during the three months to April in domestic orders for two-and-a-half years, as demand at home and overseas for goods produced in the UK increases.

Overall, the quarterly Industrial Trends Survey of 439 businesses showed a balance of +12 per cent in rising orders, with 34 per cent of respondents reporting a jump in volume during the period in question.

However, the CBI has warned profit margins are being squeezed by rising inflation and costs, although strong growth is predicted in orders over the current quarter by companies and manufacturing production is forecast to increase.

"With demand expected to strengthen further and stocks running low, UK firms are planning to step up production in the next quarter," CBI chief economic adviser Ian McCafferty remarked.

The CBI figures support a recent report from the Office for National Statistics showing the UK''s index of manufacturing expanded by 1.4 per cent year-on-year in February 2010, with output up over the month in eight out ten sub-sectors.

Network Rail improves productivity

Thu, 22 Apr 2010 14:30:00 GMT

A series of operational improvements across the UK''s rail network has led to a reduction in maintenance staff of 500 workers.

This is according to infrastructure body Network Rail, which has announced increases in productivity during the past two years have led to the cuts.

All 500 employees leaving the company''s maintenance division are doing so under a voluntary redundancy programme after technological investment and newer asset bases reduced costs.

The latest reduction follows a further 235 workers who chose to take redundancy from Network Rail in January this year as a programme of continuous improvement eliminated outdated working practices and problems with overmanning.

An additional 200 or more staff are also expected to leave the operator over the coming months as the operations management scheme continues to take effect, creating a network that requires lower levels of maintenance.

"More efficient maintenance means more investment in improving stations, opening new lines and adding capacity," Network Rail director of maintenance Steve Featherstone said.

The organisation unveiled its Delivery Plan for 2009 to 2014 in March 2009, which outlines a £10 billion programme of railway investment, including a series of major infrastructure projects.

Scottish expert predicts significant public sector cuts

Wed, 21 Apr 2010 11:51:00 GMT

An expert has forecast a 20 per cent reduction in public spending in Scotland will be required if there is no improvement in the economy.

According to Professor David Bell, cuts of 12 per cent minimum will be required across the sector, which will necessitate a programme of continuous improvement, the Herald Scotland reports.

The adviser to the Finance Committee at Holyrood''s comments to the BBC''s Politics Show follow a warning issued by Audit Scotland to MSPs that reform of all departments if needed to reduce the impact of cuts.

According to the newspaper, the body explained that ring-fencing specific areas will mean that important opportunities for reform could be missed, with future public spending reduction likely to prove "very challenging".

The public sector is facing significant operations management challenges as a result of the UK''s high Budget deficit and all three major political parties have promised to reduce expenditure in order to bring it down if they win the forthcoming General Election on May 6th.

Natures Way adopts operations management system

Tue, 20 Apr 2010 16:28:00 GMT

A new manufacturing operations management (MOM) system is being deployed at a firm''s UK plants.

Natures Way Foods is implementing the CDC Factory system at facilities in Runcton and Selsey in order to provide a real-time reporting structure and metrics to increase plant performance.

As part of improving its manufacturing processes, the company will use the operations management solution from CDC Software, having already implemented its Ross ERP product.

Providing easy to understand and relevant production information, the system allows factory workers to make adjustments and measure improvements in order to deliver efficiencies.

Natures Way Foods head of operations Richard Parr commented: "Our continued growth demands required us to unlock greater capacity from our existing equipment and people."

The fresh produce manufacturing company is based in Chichester and prepares a range of fruit items and bagged salads for sale to retail and food service businesses across the country.

Professionals interested in taking a CPIM exam may be interested in an increase in the UK''s index of manufacturing of 1.4 per cent during February 2010, according to data from the Office for National Statistics.

Flight disruptions affecting UK businesses

Mon, 19 Apr 2010 14:41:00 GMT

Disruption to air travel caused by the volcanic eruption in Iceland is having an impact on a range of different sectors.

For example, producers of perishable goods usually exported by air are struggling with the impact of the plumes of ash disrupting planes, while manufacturers may find it hard to obtain materials and parts as delays continue.

According to the BBC, Standard Chartered economist Razia Khan pointed out that Kenyan suppliers of cut flowers to Europe could be badly hit by the problems.

The news source noted that air freight carries an estimated 35-40 per cent of total goods moved around the world.

The volcano has led to the grounding of all non-emergency UK flights for the first time ever and although some services have managed to take off and land, the majority of routes remain affected.

Large regions of Europe have been impacted by the clouds of ash travelling south from Eyjafjalljokull in the south of Iceland, which is continuing to erupt.

As a result, companies may wish to improve their operations management through a programme of continuous improvement or by providing employees with access to courses such as the APICS qualification.

Parties look to public sector to deliver efficiencies

Fri, 16 Apr 2010 14:55:00 GMT

All three of the UK''s major political parties have emphasised the need to reduce public spending through continuous improvement in order to reduce the budget deficit.

In the wake of the financial crisis and the recession, the country has been left with high levels of public debt and the manifestos of the Conservatives, Labour and the Liberal Democrats all spell out their intentions to reduce waste.

This is likely to involve operations management strategies, with the Conservative plans including delivering £12 billion worth of savings.

Experts have suggested the move could result in as many as 40,000 job losses in the public sector, with proposals to reduce spending on consultants, cut staff expenses and review IT contracts.

The Labour Party declared in its manifesto it will "strip out all waste, improve efficiency and get the most out of every pound spent", building a more personal system of public services.

Meanwhile, the Liberal Democrats have outlined plans to reduce the public deficit by £15 billion, including assessing all government departments to identify where savings can be made

The UK goes to the polls for the General Election on May 6th.

UK supply chain management experts compete

Thu, 15 Apr 2010 15:30:00 GMT

Competitors in the first supply chain management competition to be held in the UK have been pitted against one another.

The Fresh Connection contest run by consultants Scala has been launched on April 12th and will take place over six weeks, with six rounds run over the internet, showcasing operations management practices.

Challengers participating in the event include leading organisations such as BAE Systems, Cadbury, Wincanton and the Ministry of Defence, as well as international teams from around the globe.

A UK final to select the winning team will be held at Wroxall Abbey in July, with participants charged with reversing the fortunes of a fictional manufacturer of fruit juice.

"Not only is The Fresh Connection a cost effective training tool for companies to teach staff how to maximise profitability, it provides a fantastic incentive for the winning team," Scala managing director John Perry has said.

Initially founded in the Netherlands in 2008, the competition is running in a number of countries this year, with plans for a world final later in 2010.

Growth in UK producer prices

Wed, 14 Apr 2010 17:08:00 GMT

The prices commanded by UK manufacturers rose by five per cent year-on-year in March.

According to the latest output price index for home sales of goods produced in the country, the March total stood above a 4.2 per cent annual rise in February.

Particular sectors contributed more to a 0.9 per cent increase in producer prices between February and March, including petroleum and chemical products.

Meanwhile, the Office for National Statistics (ONS) estimates less than 0.1 per cent has been added to the overall output index for March by alterations to excise duties.

Excluding food, beverages, petroleum and tobacco, the annual increase in output prices was 3.6 per cent to March and 0.7 per cent over the month.

ONS figures revealed a 1.4 per cent increase in the manufacturing index in February, with output up across eight of ten sub-sectors.

Improving conditions for manufacturers in the UK could cause firms to invest in training such as an APICS qualification for operations management professionals to further enhance their business and reduce costs.

Optimism growing among services companies

Tue, 13 Apr 2010 13:56:00 GMT

Businesses operating in the UK''s services sector are becoming more confident about their prospects, a new study has found.

Research by Lloyds TSB indicated a rise of five per cent in optimism among such firms to balance of 51 per cent, as the sector recovers from the recession.

Those working in operations management within the services industry may be interested to learn the Corporate Markets Business Barometer indicated that overall confidence in their economic prospects has grown among UK companies to the highest rate since January 2008, although many respondents remained cautious.

According to the poll, optimism is rising and 54 per cent of enterprises predict an increase in business activity during 2010, compared with just five per cent expecting it to slow.

This resulted in a balance of +49, compared with +46 in February, with smaller firms most optimistic about their outlook for this year.

Services specialists looking for operations training courses are also advised the latest Purchasing Managers'' Index stood at 56.5 in March, indicating the sector is witnessing signs of activity increasing steadily.

Manufacturing index expands in February

Mon, 12 Apr 2010 15:11:00 GMT

The UK''s index of manufacturing rose during February 2010 by 1.4 per cent on a seasonally-adjusted basis year-on-year.

According to the latest figures from the Office for National Statistics (ONS), the overall index of production dipped by 0.1 per cent during the month.

However, the manufacturing industry witnessed a strong climb compared with February 2009 and output rose in eight out ten sub-sectors, with the largest increases recorded in transport equipment (16.9 per cent) and food, drink and tobacco (2.8 per cent).

An annual change of 51.6 per cent was witnessed in the manufacture of motor vehicles in the UK, something which may particularly interest operations management professionals in the industry.

Commenting on the strong February data, RLAM economist Ian Kernohan pointed to other positive figures released recently from the Organisation for Economic Cooperation and Development and the purchasing managers'' index and remarked: "The UK manufacturing sector looks to be participating in a general upturn in global trade."

Tories plan public sector efficiency savings

Fri, 09 Apr 2010 16:54:00 GMT

Operations management is likely to play a key role in plans to deliver savings by the Conservative Party if they win the General Election.

Tory leader David Cameron has outlined a £12 billion plan for proposed cuts across the public sector in order to reduce the UK''s deficit in the wake of the financial crisis.

According to the plans from Conservative adviser Sir Peter Gershon, the savings initiative will include cuts to the wages bill through jobs losses, a recruitment freeze and wage reductions in order to fund a proposal to prevent National Insurance increases.

Other strategies include renegotiating procurement deals and reducing spending on areas such as consultants, administration and IT projects as part of a series of continuous improvement measures that are intended to cut public sector expenditure.

"I don''t think it''s particularly challenging to ask government to save £1 out of every £100 it spends," Mr Cameron told the BBC.

However, the Labour Party has questioned the Tory figures and insists National Insurance must be raised in order to balance the budget.

Sony announces green operations management targets

Thu, 08 Apr 2010 12:08:00 GMT

A series of new goals aimed at achieving a zero environmental footprint by 2050 have been unveiled by Sony.

The global electronics firm has launched its Road to Zero strategy and a series of mid-term targets to 2015 that will help it to achieve this end.

Under the ambitious plans, operations management will be impacted as the company looks to achieve carbon neutrality, zero waste and reduce its usage of finite materials in the production process.

Sir Howard Stringer, Sony President and Chief Executive, declared: "From the development of new materials and energy-efficient technologies, to the introduction of better processes in manufacturing and production, we will work aggressively to meet the ambitious targets."

He added the firm also wants to set an example to other businesses, with 2015 goals including a ten per cent cut in product mass, a drop of 30 per cent in energy consumption and a 50 per cent reduction in waste generation.

In January, Panasonic committed to reduce the level of greenhouse gases for which it is responsible by 50 per cent compared with 2006 levels by 2018 through a programme of continuous improvement.

UK services sector activity improving

Wed, 07 Apr 2010 13:11:00 GMT

Britain''s services industry is starting to recover from the impact of the recession and is witnessing steady growth in activity.

This is according to the latest Purchasing Managers'' Index (PMI), which shows the pace of increase slowed slightly over the month but remained above the 50 mark that is indicative of expanding activity.

It was recorded at 56.5 in March, slight below a rise to 58.4 in February.

Additionally, the first increase in employment was recorded during March since April 2008 and Markit senior economist Paul Smith said: "The services sector continues to play a strong role in the recovery of the U.K. economy."

Business expectations in the sector have grown and firms are predicting that it will emerge from the downturn during 2010.

Those concerned with continuous improvement in services organisations are also advised the government recently announced a new programme of support designed to encourage innovation in the professional and business services industries.

Manufacturing sector experiences strong March growth

Tue, 06 Apr 2010 14:37:00 GMT

The UK''s manufacturing industry expanded in March this year to 57.2, up from 56.5 the previous month.

According to the latest purchasing managers'' index (PMI), the factory output total increased at its fastest rate in more than 15 years to 61.9, with any figure above 50 indicating growth.

Markit senior economist Rob Dobson commented on the "solid" manufacturing data from the firm and the CIPS: "The rebound is coming from a broad base by sector and company size, raising hopes that this will prove sustainable."

February''s CPI remained stable at the same figure recorded in January, while the March total significantly exceeded a forecast from analysts of 56.8 for the month.

The latest PMI will be welcomed by those concerned with improving manufacturing processes, as well the news that new government awards known as Cluster Marks have been launched to honour leading clusters of producers in the UK, with the first prizes recently handed out.

New body aims to enhance NHS operations management

Thu, 01 Apr 2010 14:42:00 GMT

In order to assist continuous improvement within the NHS and social care agencies, the Department of Health has announced the formation of a new body.

The government is creating a new organisation that will provide guidance on ensuring that the health sector workforce operates more efficiently and patient care is more people-centred.

Dubbed the Centre for Workforce Intelligence, the body will be headed by Mouchel director of learning and wellbeing Peter Sharp and will facilitate a move towards care in homes and within communities.

Its formation follows a 2008 report on the future of the NHS workforce and the facility will provide best practice examples regarding workforce and demand planning, access to research and expert advice to NHS planners and develop "high quality data, analysis and modelling".

Commenting on the body, health minister Ann Keen said: "The new Centre for Workforce Intelligence will provide an authoritative resource on workforce planning for national and local organisations."

Recent Department of Health figures revealed the number of people seeking jobs in the social care sector has risen to record levels.

Business minister sees manufacturing efficiencies

Wed, 31 Mar 2010 15:45:00 GMT

The UK''s business minister has been visiting a Vauxhall car plant to inspect a number of manufacturing efficiencies that have been implemented at the facility.

Ian Lucas toured the Ellesmere Port site and toured the production line for the new Astra model, with manufacturing on the car due to commence in September.

The minister pointed out that the plant has become "one of the most competitive and productive" in the UK through a range of continuous improvement measures.

He added: "There has been good news for car manufacturing recently and the government is doing all it can to help the industry transition to meet future demand for low carbon vehicles."

Under the government''s Ultra Low Carbon Vehicles strategy, schemes will receive support aimed at making the UK a world leader in terms of low carbon vehicle technology.

Ministers recently approved a loan totalling €300 million (£270 million) for GM Europe to secure the future of its UK operations.

Manufacturing ''moves towards value-added models''

Mon, 29 Mar 2010 11:06:00 GMT

The UK''s manufacturing industry has gradually shifted towards "value-added business models" and away from "simply optimising utilisation and driving down costs", a new report has suggested.

According to research carried out by Cranfield School of Management, operations management processes are now emphasising "quality, delivery, innovation and service".

The study, conducted in conjunction with Barclays Corporate and Findlay Media, examined winners of Best Factory Awards over two decades and discovered a dramatic change in production over the past 20 years.

Organisations found to be the best in manufacturing were identified as using inventory control techniques, investing in new technology, developing sales and operation planning infrastructures and adopting lean production practices.

"What has become clear year after year is that manufacturing is not standing still, it''s continually changing, adapting and growing," Dr Marek Szwejczewski of Cranfield School of Management remarked.

New awards honouring manufacturing clusters, which promote best practice among companies in specific regions, were recently presented in London by business minister Ian Lucas.

Best practice shared between UK manufacturers

Fri, 26 Mar 2010 14:13:00 GMT

A new award has been launched that honours the best manufacturing clusters in the UK.

Such networks bring together companies and organisations in specific regions to share knowledge and best practice in order to drive growth and continuous improvement in the sector.

The Cluster Marks have been presented by business minister Ian Lucas at a ceremony at Lancaster House in London in recognition of the contribution of such activities to economic growth and innovation.

Intended to raise the profile of clusters in the UK production sector, an independent judging panel was appointed to select the winners, which came from a range of industries, including seagood, biomedical science and aerospace.

Mr Lucas declared: "In order to succeed globally in a low carbon future, the sector must keep evolving and innovating. This is where collaboration can make a huge difference."

Those planning to complete operations training courses are advised the UK''s index of production fell in January by 1.5 per cent year-on-year, making such initiatives more important than ever.

Health service to contribute £4.4bn in savings

Thu, 25 Mar 2010 12:07:00 GMT

The Department of Health and the NHS have been charged by the government with delivering £4.35 billion worth of a total £11 billion per year in planned cost savings by 2012-13.

Aimed at reducing the UK''s deficit substantially in the wake of the financial markets crisis, the plans were announced by chancellor Alistair Darling in his annual Budget on March 24th.

Almost half of this target will be met by the health service, which is expected to apply operations management solutions to save significant sums.

Ministers have identified a series of areas in which expenditure can be reduced, including pushing down procurement costs, adopting new IT policies, driving down energy usage, using NHS estates more efficiently and tackling absences through staff sickness.

Health secretary Andy Burnham remarked: "To go from good to great, the NHS must become more preventative, more people-centred and more productive."

The efficiency savings will contribute towards protecting key public services and are to be delivered in line with the government''s Operational Efficiency Programme, which will also be applied to other departments to generate cost reductions.

Government plans to support services sector innovation

Wed, 24 Mar 2010 15:23:00 GMT

A new programme of support for innovation and growth in the UK''s professional and business services industries has been unveiled by ministers.

The plans are outlined in a draft report from the Department for Business, Innovation and Skills and are intended to boost development within the sector, which is forecast strong levels of growth between now and 2020.

As new markets are established in emerging economies, the potential of exports is expected to grow and industry leaders are being consulted on ways of ensuring firms choose to remain in the UK.

The also government wants to ensure services are developed that ensure the country moves towards a low-carbon and digital economy, something of particular interest to those concerned with operations management and continuous improvement policies.

Lord Davies, trade, investment and small business minister, said: "The sector is a real asset to the UK as we transform to a more networked and smarter low carbon economy."

A poll of 180 firms conducted in January and February by the CBI discovered the service sector saw a stabilisation of business volumes during the previous three months.

Engaged workforce ''is good for business''

Tue, 23 Mar 2010 16:16:00 GMT

Company bosses have been advised that an engaged workforce could help to drive continuous improvements within their firms.

The government has collaborated with a number of representatives from across the business sector to develop guidance highlighting the advantages of employee engagement.

Supermarket chain Sainsbury''s was among the contributors, along with United Utilities, the Civil Service and the CBI.

Richard Lambert, director general of the CBI, said the recent recession highlighted the fact that an engaged workforce can help a company come through difficult times "in better shape".

Justin King, chief executive of Sainsbury''s, added: "Our colleagues are key to the success of our business."

This coincides with a new study from the National Training Awards, which found that 43 per cent of employees consider a passion for their job as a strong performance motivator.

Meanwhile, 32 per cent of respondents said they find money a good motivation to perform strongly at work.

NHS staff poll reveals continuous improvement

Fri, 19 Mar 2010 16:42:00 GMT

A survey of people employed by the NHS has discovered a record number of improvements in satisfaction levels during 2009.

According to the Care Quality Commission poll, the results mark the best ever year for the annual research with 74 per cent of staff satisfied with "the quality of work and patient care they are able to deliver", a year-on-year increase from 71 per cent.

Meanwhile, job satisfaction was rated at 3.5 out of five - its highest ever level - and appraisal rates climbed from 64 per cent to 69 per cent, something that may interest operations management professionals working in the public sector.

Staff engagement, the number of employees with personal development plans and the level of respondents witnessing errors all fell during 2009, while physical violence dropped one percentage point to a record low of 11 per cent.

"The results also show positive signs that an increasing strong culture of reporting and learning is being embedded in the NHS," health minister Ann Keen remarked.

Meanwhile, Department of Health data has shown of the 285,000 admitted patients treated during January 2010, 92.6 per cent completed their referral to treatment pathway within 18 weeks, as did 97.7 per cent of the 814,000 non-admitted patients.

Production output dips in January

Thu, 18 Mar 2010 17:13:00 GMT

The importance of effective operations management is highlighted by new figures revealing that the UK''s index of production dipped year-on-year in January by 1.5 per cent.

Between December and January, the Office for National Statistics (ONS) data show total production output was 0.4 per cent lower, although mining and quarrying and energy supply output rose.

However, total manufacturing output increased 0.2 per cent during January 2010 compared with the same month of 2009, the first year-on-year increase since March 2008.

During the recession, many companies in the sector have focused on production and inventory control, with some indications now that the sector is stabilising, although a 0.9 per cent drop between December and January was driven by poor performance in the electrical and optical equipment, chemical and manmade fibres and non-metallic mineral products industries.

Commenting on the ONS figures, Barclays Corporate head of UK manufacturing, transport and logistics Graeme Allinson said: "With the possibility of figures still being a little turbulent from month to month, nonetheless positivity in the manufacturing sector is mounting."

Government strategy ''improving economic growth''

Thu, 18 Mar 2010 17:11:00 GMT

The business secretary has marked the first anniversary of the New Industry, New Jobs strategy.

According to Lord Mandelson, the scheme has helped the UK lead the way in terms of new industrial development by instigating a new approach to government investment designed to boost economic growth.

"We will need new industrial strengths and we will need to reinforce our position as global leaders in innovative manufacturing and services," he stated.

Those involved in operations management and continuous improvement policies may be interested in his assertion that "a new wave of private sector investment" is needed over the next ten years in order to enhance the nation''s place in international manufacturing and services innovation.

He highlighted the importance in particular of enhancing skills, knowledge and green approaches in order to drive forward the economy.

In a recent review of the UK''s production sector for the Conservative Party, entrepreneur and inventor James Dyson claimed more innovative approaches to the hi-tech industry are required to ensure that the country leads the world in this field.

Call for overhaul of UK manufacturing''s image

Wed, 17 Mar 2010 14:15:00 GMT

The image of the UK''s production sector needs to be revamped in order to modernise it and media stereotypes need to be challenged, it has been suggested.

According to a new report by thinktank Policy Exchange, industry is often perceived as a "bad news" story and depicted by London-based mass media as a part of the economy that is "dying, old fashioned, badly paid and unpleasant to work in".

The Innovation and Industry: A Manifesto for Manufacturing study advocates a new image for production, noting that the UK''s is the sixth largest production power in the world with output rising steadily until the global downturn.

Published in the wake of the recent purchase of Cadbury by US food giant Kraft, the report calls on the government not to intervene in bids for UK businesses by foreign entities, but instead to defend them in the interests of an open economy.

Operations management professionals may also be interested in recent comments made recently by head of programmes at the Manufacturing Institute Adam Buckley that manufacturing is "critical" to ensuring the British economy recovers from the effects of the financial crisis and the recession.

Councils could use funding to boost economic recovery

Tue, 16 Mar 2010 16:30:00 GMT

Funding totaling £50 million is being allocated by the government to local authorities to boost economic recovery in local areas in the wake of the recession.

Those working in public sector operations management may be interested to learn that the cash, announced by communities secretary John Denham, will be awarded to those local councils that promote growth in a successful way.

According to the minister, the funding is available via the Local Authority Business Growth Incentives (LABGI) scheme in all parts of the country, in order to assist those struggling in the current economic climate.

"Strong, vibrant, decisive local government is an essential part of our plans to promote growth and cut unemployment while rebuilding the public finances," Mr Denham said.

For example, more than £400,000 has been granted to Bristol to deliver Real Help Now Government initiatives, fund a jobs bus and establish an apprenticeships programme with the university.

Local authorities will also benefit from a recent £83 million investment by the government in the continuous improvement of low-cost home provision, which will see the development of around 5,700 properties put back on track.

GM Europe supplied with £270m government loan

Mon, 15 Mar 2010 13:24:00 GMT

A loan totalling €300 million (£270 million) has been approved by the government for GM Europe.

Intended to secure the future of the carmaker''s operations in Britain and further afield, the financial assistance will be delivered under the UK Automotive Assistance Programme.

The Department for Business, Innovation and Skills'' loan is in addition to help for the manufacturer from the US and other governments in Europe, something that may interest those working in operations management.

Business secretary Lord Mandelson explained the funding guarantee is part of a commitment by ministers to "stand foursquare behind Vauxhall" and its workforce.

"We need Vauxhall to thrive as part of Britain''s automotive manufacturing base and following our negotiations with GM Europe I am confident it will do so," he declared.

Meanwhile, Japanese carmaker Toyota has been forced into improving manufacturing processes and reviewing its operations management after 180,000 vehicles were recalled in the UK over concerns relating to faulty accelerator pedals.

Work starts on Teeside advanced manufacturing facility

Fri, 12 Mar 2010 10:04:00 GMT

The expansion of an industrial biotechnology demonstrator, that will help in advancing and improving manufacturing processes, has begun in Wilton, Teeside.

The government has invested £12 million in the hope that the facility will bring continuous improvement to the development of novel and more sustainable advanced manufacturing and process technologies.

Business minister Ian Lucas attended the ceremony for the expansion that should enable the UK to compete in a market sector that is forecast to experience rapid growth in the next 15 years.

Mr Lucas indicated the government''s awareness of the role UK manufacturing would play in the nation''s economic growth.

"Here in the north east the regional strengths in industrial biotechnology, plastic electronics and advanced manufacturing will help the UK achieve its goal of economic growth and a low carbon economy", Mr Lucas added.

On Friday (March 12th), Lord Mandelson was in Manchester to discuss the government policy on regional economic investment.

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 Module D8: starts week commencing 28th June 2010.

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

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.

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.

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.

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.'

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.'

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.

‘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

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.”

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.

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.”

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.”