Developing a dynamic and successful automotive future

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• Developing a dynamic and successful automotive
  future

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ACCELERATE HISTORY

• Launched in 1996
• A co-ordinated regional response to the
  competitive pressures facing the sector
  particularly SMEs
• Initially focused on manufacturing process
  improvement

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ACCELERATE HISTORY

• Accelerate 1996-2001
• 54 Million invested
• 950 SMEs assisted
• RTF Emergency Aid 2000-2001
• 10 Million invested
• 300 companies assisted

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ACCELERATE ACTION PLAN

• 20022007 an action plan for supporting the
  West Midlands automotive sector
• Funding - 90 Million package
• Continued need for QCD manufacturing process
  improvement

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ACCELERATE

• BUT
• Need for broader approach to business
  development, incorporating-  Strategic
  Planning-  Innovation Creativity - 
  Differentiation

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ACCELERATE GOAL
Fit
Strong
Leading
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ACCELERATE
Product Technology Changes
Business Development Grants
Wide range of IT opportunities
Management Development
Fit
People and Management systems
Networks
Strong
Supply Chain Improvement
New business models
Leading
Manufacturing performance
Specialist Centres
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SME ELIGIBILITY

• Automotive component suppliers, toolmakers or
  designers of components
• West Midlands based
• Up to 400 employees (Group Size)
• Turnover up to 40 Million Euros
• Balance Sheet up to 27 Million Euros

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BUSINESS DEVELOPMENT GRANTS

• Individual Company Support
• Delivered via the regions Business Link network
• Up to 30,000 available for business development
• Funded at 50
• Benchmark requirement
• Activity QCD, lean manufacturing, other
  development as identified within benchmark

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MANAGEMENT DEVELOPMENT

• Enable suppliers to become more flexible,
  efficient and innovative through the development
  of their key people
• Address suppliers training needs
• NVQ 2 5
• Cost between 50 and 150 per course

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NETWORKS

• Collaboration between suppliers on mutually
  beneficial business issues.
• Promote innovation, share resources, share
  expertise best practice, learn together.
• Members achieve something that they could not
  achieve alone.
• Average of 22,000 support from Accelerate.
• Average cost to member companies 1,000.
• Between 4 and 10 SMEs per Network.

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NETWORK TYPES

• Thematic networks - around fundamental topics for
  participating SMEs, e.g
• QCD /Lean manufacturing, Sales Marketing,
  ISO14001, IPPC.
• Strategic networks - around key automotive
  industry developments,e.g
• High voltage systems, 3 day car, TS16949, 6
  sigma, E-procurement.

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Network Examples

• Press toolmakers network
• Achieving ISO14001
• E-Auction / E-Procurement Network
• Customer Relationships competitive Positioning
• Achieving TS16949
• Optimising Manufacturing Performance
• 6 Sigma Network (Accredited)
• Human Resource Strategy Processes
• Collaborative Marketing
• IPPC Surface Finishers Network

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SPECIALIST CENTRES

• Promote accelerate the adoption of innovation
  new technologies by West Midlands SMEs.
• Enable SME access to world class innovation
• Activity champions
• e.g. SMMT, Universities, MAS, DDA
• Knowledge transfer
• seminar and workshop activity
• individual development of SMEs

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SPECIALIST CENTRES

• Objectives
• Catalyst for innovation
• Develop understanding of new technologies
• Enhance SME links to learning institutions
• Best expertise available
• New opportunities for in company support
• Achieve real change in innovation activity

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SUPPLY CHAIN IMPROVEMENT

• Strengthen supplier/customer relationships
• Implement in-company improvements
• Structured process of improvement
• Develop an understanding of company capabilities
  / resources
• Measurable performance improvements
  (Benchmarking)
• National Supply Chain Groups

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SUPPLY CHAIN ACHIEVEMENTS

• Case study NSK Steering Systems
• 1997 - identified quality problems
• Supply chain activity on-going since 1998

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PROJECT OBJECTIVES

• Up skill supplier personnel
• Share best practice
• Establish partnership
• Improve QCD performance
• Not a cost down programme
• Benefits for suppliers

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OVERALL IMPACT UPON SUPPLIERS

• Not right first time ppm 65 reduction
• Productivity 27
• Stock turns
  17
• Overall equipment effectiveness 24
  
• Value added
  6
• Floor space utilisation 20
• Delivery schedule achievement 71

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RESULTS

• 20 improvement in productivity
• 50 reduction in tool changeovers
• 30 improvement in delivery performance
• Attainment of 100 right first time
• Introduction of good visual control systems
• 6 suppliers reduced delivered quality ppm rejects
  to NSK from 1,489 to 357

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SUPPLIER DELIVERED REJECTS PPM
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ACCELERATE OUTPUTS

• JOBS SAFEGUARDED
• Target safeguarded 14,000
• Performance Across the programme 18,121 jobs in
  97 companies earning less than 6 ROCE

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OUTCOMES

• VALUE ADDED PER PERSON
• Target Average 46,700
• Initial position 35,966 (November 2002)
• Sample of 47 Benchmarked companies in Business
  Link Programme Average 51,073 (across 1,500
  jobs)
• Initial limited sample, but looks promising

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OUTCOMES

• RETURN ON CAPITAL EMPLOYED
• Target 25
• Performance initial position 12 average
• Sample of 47 Benchmarked companies in Business
  Link
• ROCE
• 23 lt10 (some negative)
• 7 10 - 20
• 17 gt20

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OUTCOMES

• STOCK TURNS
• Target - average stock turn 20
• Performance initial average of 13 in November
  02 currently of the Benchmarked Businesses
• Stock Turn
• 101 lt 10
• 202 lt 20
• 104 gt 20 (some over 100)

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• THANK YOU
• Robert Lott
• Accelerate Project Manager