CUMPLIMIENTO A LOS LINEAMIENTOS Y CRITERIOS EN LOS PLANES DE MANEJO Y PROGRAMAS DE DESARROLLO URBANOS

The key recommendations of this study are:

 WG to focus more on a single thread approach to assisting companies directly with their supply chain and manufacturing problems. This is to remove the plethora of government supported assistance programmes that have little or no effect on the companies and, to focus on technology enhancement before providing training grants for companies. To do this, it is recommended that WG undertake a comprehensive spending review on all industry support programmes in Wales and from here, to measure their effectiveness and show strong leadership to cull and restructure around three core themes seen later in this plan.

 Remove the focus on individual schemes of company improvement and drive an agenda based around the Welsh Manufacturing Strategy. Link funding and support programmes around this strategic vision so companies are encouraged to think more strategically and innovatively about international market penetration and the efficiency and capabilities of their supply chains. BDMs to continue to map Welsh manufacturing supply chains and to provide strategic and operational information to Industry Wales and the AM+M sector panel in order to identify possible opportunities for localisation and aggregated demand

 Whilst it is recognized that some FDI companies are drivers of innovation and creativity in their respective industry sectors, the majority are not. It is recommended that the WG not only attempts to support the larger FDI companies but also focus funding on the indigenous and high performing SMEs since it is here that innovation and growth is also seen to lie. Aim to protect and support such companies and if necessary, focus on the development of an ‘Anchor SME’ as well as FDI companies which provide jobs but in some cases, are highly vulnerable and can lack innovative capacity.  Set up a Manufacturing Observatory concept from which technology

gatekeepers and industry analysts can provide real time data and information to companies. This observatory concept will provide market trend data, new product development options, supply chain repatriation strategies to draw in further work in to Wales. Allocation of ERDF funds to support such a venture should be applied for. Also, the MO will provide early warning to WG of companies which are showing signs of failure so that early intervention to achieve effective financial turn-round can be implemented before it becomes too late.

 Refocus funding around the company and drive innovation much more quickly and effectively in to organisations. At present companies feel that the hurdle towards obtaining money for innovative work is far too complex and difficult. Whist EU Horizon money is focused around the company, WG money seems to be located around the academic institution. Often, the claim for such funding means that the focus of the funding moves away from the company and more towards the academic institution. By refocussing on the company, the company can then engage with the academic institution of their choice and

one which best suits their needs and, which will lead to improved collaborative relationships being developed.

 Enable the Fora and Industry Wales to develop higher level, longer term and more meaningful development with their membership companies. The focus should be towards assisting companies to developing their new products and processes to meet the technical demands of the next product platform within their sectors. The survey identified that Fora CEOs have a detailed and impressive level of knowledge of their sectors and their member’s requirements. Therefore, there needs to be a mechanism whereby this knowledge is harnessed and aligned to drive innovative practices for companies to operate in future supply chain programmes. This means that through engagement with large scale R+D based projects such as ASTUTE etc. and playing a key role in the development of the MO, IW can play a significant role in defining the future basis for Welsh Manufacturing Industry. A suggested programme of work for IW would be:

o To undertake a comprehensive survey of the current Technology Readiness Levels (TRLs) of each company within the IW membership. o To undertake detailed discussions with the leading automotive and

aerospace OEM companies to determine as far as feasibly possible, their future product platforms and to identify the product and process technologies required to enable Welsh industry to deliver the industry’s future needs.

o To work with the WGs existing Innovation support programs in order to align future technology strategy to ensure Welsh industry is fully supported to deliver the next range of innovative products and, to enhance the level of innovation being undertaken by Welsh manufacturing companies.

o To work with staff on the Business Innovation Programmes to assist in delivering and higher level business support and deploying leading edge manufacturing assistance to companies and, to ensure innovation and product/process enhancement is key to ensuring that Welsh manufacturing companies meet the future technology requirements of the next generation of supply chain.

It is suggested that appropriate funding is found that will enable Industry Wales to drive high level supply chain innovation. To do this, a suitable ERDF or Horizon based project bid is required to be submitted by Industry Wales that enables this vision to be created. However, there will be a number of highly competitive bids which will be submitted soon for structural funding so there is a need to respond quickly to this call. It is also worth considering the issue of decoupling IW from the WG in order to operate as a fast and flexible independent organization which feeds in to the WG future manufacturing strategy. The approach to decoupling IW from WG could also assist in obtaining a wider range of funding.

 Taken as an example of best practice from WGs Constructing Excellence programme, it is suggested that the WG AM+M team should consider the development of a ‘Best Practice Company Locator System’ that showcases world class manufacturing being undertaken by companies in Wales. However, this programme is likely to be very resource intensive and will require continual and accurate updating of company details as and when their capabilities and capacity to undertake various services change over time. This

can be seen as a key ‘systems integrator’ within the new manufacturing order in Wales. The system would enable the WG AM+M team to work towards identifying new supply chain opportunities for companies in Wales and from this, to identify any supply chain voids and FDI opportunities. However, industry response to this approach is not enthusiastic and concerns exist around data security.

 The survey found that many companies felt that the programme of support manufacturing improvement and support was somewhat fragmented and highlighted the previous MAS programme as being effective in that it provided a one-stop-shop approach to assisting organizations. A number of companies highlighted that ASTUTE was seen as the programme of assistance that was being used in the main to deliver the larger scale projects in companies (See Figure 9a). Therefore, it is suggested that if WG consider the reintroduction of the Manufacturing Advisory Service (MAS) in Wales, for it to work alongside ASTUTE and IW in deploying appropriate and innovative improvement strategies to companies. MAS brand reputation has been lost but is recoverable. The current system of supporting companies is seen by industry as being inadequate and not fit for purpose.

 Table 9.1 and 9.2 outline the costs for a three year programme of development:

 Reintroduction of MAS / revision of current BIM programme  Development of Manufacturing Observatory

 Restructuring Industry Wales to provide 3 years of funding and to drive the innovation agenda in to Fora member organisations.

Programme Staffing Staffing Costs Delivery Costs Delivery Duration Expected Outputs

MAS / BIM 3 £200K p.a. £1.5 Million (£500K pa plus 50% match from companies). Costs will be incurred from developing consultancy teams

3 Years To drive innovation and change in to companies rather than the current sign-posting approach currently being undertaken.

Reintroduce the MAS brand to ensure companies feel supported. Manufacturing Observatory A joint academic institution application for MO development. Horizon / ERDF 9 £800K p.a £600K (£200K pa plus match from companies). Costs incurred from product development time and research time to undertake technology and market scanning

3 Years To provide horizon scanning and technology gatekeeping / scanning activities and futures reports etc for WG and companies. Support future WG strategies.

To provide start up support to companies and specific NPD/NPI support for new and innovative product and process development. Driving new products to market.

Horizon / ERDF Funding

route

(£40K pa) provision for IW and refocus efforts towards driving the Welsh Manufacturing Strategy agenda.

Work with companies within respective clusters to develop longer term company strategic intent and achieve sustainability through identifying the opportunities to repatriate further supply chain opportunities back to Wales.

Be the central conduit between MAS and WG decision makers to as to manage and control the strategic direction of MAS Best Practice Company Locator ERDF Funding Route 3 £100K p.a £250K (£50K p.a) £50K Database Development

5 years The development of a Best Practice Company Locator that showcases high performing manufacturing

companies in Wales. This is resource intensive and will require continual updating of supplier details as and when their capabilities and capacity to undertake various services change over time. This is seen as a key ‘systems integrator’ within the new manufacturing order in Wales.

Re-establish MAS. Put feet on the ground to deploy strategy and deliver real time improvements in Welsh

Supply Chain Companies

Establish the Manufacturing Observatory to undertake

technology and market scanning an develops incubator concept for NPD/I

(Horizon Scanning) WG BDMs to provide the

conduit between the MO and MAS. Ensure Welsh manufacturing Strategy is delivered and supply chains are

mapped accurately Focus Strategic & Visionary Focus Operational & Tactical Focus Strategic & Operational

Table 9.2 – Resource Integration of key supply chain support systems

‘Best Practice Company Locator’. Identifies manufacturing best practice

and supplier capabilities. Identifies FDI opportunities and

SC voids IW providing technical assistance

and strategic direction to companies in developing and enhancing new products and processes in the supply chain

Bibliography

ADS. (2010). ADS Aerospace Industry Survey. Farnborough: ADS. ADS. (2011). ADS Industry Fact Sheet. Farnborough: ADS.

ADS. (2014, March 4). ADS. Retrieved from ads.org.uk: https://www.adsgroup.org.uk/

ADS. (2014, March 4). Aerospace Growth Partnership. Retrieved from ads.or.uk: https://www.adsgroup.org.uk/pages/40227907.asp

Aerospace Wales. (2013). Aerospace Wales Forum Member Survey 2013. Bridgend: Aerospace Wales.

Aerospace Wales Forum. (2013). Aerospace Industry in Wales. Bridgend: Welsh Government.

AGP. (2013). Lifting Off: Implementing the Strategic Vision for UK Aerospace. London: UK Government, AGP.

Alix Partners. (2013). Pockets of Turbulence the 2013 Aerospace & Defense Industry Outlook. Chicago, IL: Alix Partners.

AM&M Sector Panel. (2012). Advanced Materials and Manufacturing (AM&M) Summary Advice from the Sector Panel. Cardiff: Welsh Government.

Amatulli, C. C. (2011). Strategic Analysis through the General Electric/McKinsey Matrix: An Application to the Italian Fashion Industry. International Journal of Business and Management, 61-75.

Automotive Council UK. (2013). Driving success – a strategy for growth and sustainability in the UK automotive sector. London: HM Government.

Beamon, B. (1999). Measuring supply chain performance. International Journal of Operations & Production Management, 275-292.

BIS. (2010). Manufacturing in the UK: An economic analysis of the sector. London: Department for Business Innovation and Skills.

BIS. (2011). Infrastructure Supply Chains: Barriers and opportunities. London: UK Government - BIS.

BIS. (2012). Economic Paper no. 17 - UK trade performance across markets and sectors. London: Department for Business, Innovation and Sills.

BIS. (2013). Industrial Strategy Conference 2013: Securing Jobs and a Stronger Economy. London: Department for Business, Innovation and Skills.

BIS. (2014). Strengthening UK Supply Chains. London: UK Government, BIS.

Butner, K. (2010). The smarter supply chain of the future. Strategy and Leadership, 22-31.

CBI. (2012). Innovation Wales - CBI Response. London: CBI.

CBI. (2013). Full speed ahead - An Industrial strategy for the UK automotive sector. London: Confederation of British Industry.

CBI. (2013). Index of production for wales and index of construction for wales, quarter 3 of 2013. London: Confederation of British Industry.

CBI. (2014, March 4). Raising the bar - Building Stronger UK Supply Chains. Retrieved from cbi.org.uk: http://www.cbi.org.uk/campaigns/industrial- strategy/raising-the-bar-report/chapter-3-building-stronger-uk-supply-chains/

CCLSCM. (2014, March 4). Cranfield Centre for Logistics and Supply Chain

Management. Retrieved from som.cranfield.ac.uk:

http://www.som.cranfield.ac.uk/som/p1609/Research/Research-Centres/Centre-for- Logistics-and-Supply-Chain-Management

CIPS. (2011). Achieving Robust Supply Chains. London: Chartered Institute of Purchasing and Supply.

Consumer Goods Forum. (2011). Manufacturing in the UK: An economic analysis of the sector. New York, NY: The Consumer Goods Forum.

Cooper, M. E. (1993). Characteristics of Supply Chain Management and the Implications for Purchasing and Logistics Strategy. International Journal of Logistics Management, 13-24.

Deloitte. (2013). Deloitte Global CPO Survey 2013. Chicago, IL: Deloitte.

Deloitte. (2013). The Ripple Effect How manufacturing and retail executives view the growing challenge of supply chain risk. Chicago, IL: Deloitte.

DuBiel, J. (2012). The Road to Maturity: Key Characteristics and Competencies of Best-in-Class Supply Chains (WHITE PAPER). Raleigh, NC: Supply Chain Edge. Edwards, P. D. (2014, March 4). Fast Growth 50. Retrieved from fastgrowth50.com: http://www.fastgrowth50.com/

EEF. (2014, March 4). EEF - The Manufacturers' Organisation. Retrieved from eef.org.uk: http://www.eef.org.uk/

Ernst and Young. (2013). How healthy is your supply chain? London: Ernst and Young.

FM Global. (2006). The New Supply Chain Challenge: Risk Management in a Global Economy. Berkshire: FM Global.

Gopal, P. T. (2012). A review on supply chain performance measures and metrics: 2000-201. International Journal of Productivity and Performance Management, 518- 547.

HESA. (2012). Fulltime UK domiciled leavers who entered employment in the UK. London: Higher Education Statistics Agency.

HESA. (2012). Industry of fulltime first degree leavers entering employment in the UK. London: Higher Education Statistics Agency.

Holweg, M. D.-J. (2009). The competitive status of the UK automotive industry. Buckingham: PISCIE Books .

Holweg, M. T. (2012). Growing the Automotive Supply Chain: The Road Forward. London: The Automotive Council.

Humphries, A. (2004). UK Defence Supply Chain Relationships: a study of Sustained Monopoly. Management Decision Journal, 259-276.

IBM. (2008). The Smarter Supply Chain of the Future: Automotive Industry Edition. Somers, NY: IBM Corporation.

Industry Wales. (2014, March 10). Industry Wales. Retrieved from industrywales.com: http://www.industrywales.com/

Johnson, A. (2012). DESIGNING ROBUST AND RESILIENT SUPPLY CHAINS. New York, NY: UMI Dissertation Publishing.

KPMG. (2012). Capturing opportunity: opportunities in the UK An assessment of supply chain automotive sector. London: KPMG.

KPMG. (2013). The future of UK civil aerospace. London: KPMG. KPMG. (2013). The Global Manufacturing Outlook. London: KPMG.

KPMG. (2014). KPMG’s Global Automotive Executive Survey 2014 - Strategies for a fast-evolving market. London: KPMG.

Manufacturing Advisory Service. (2014, March 4). Manufacturing Advisory Service (MAS). Retrieved from mymas: http://www.mymas.org/

Mokoya, S. W. (2012). The Application of McKinsey Matrix in Determination of Route Attractiveness and Resource Allocation in Kenya Airways. International Journal of Humanities and Social Science , 259-268.

ONS. (2013). Annual Business Survey, 2011 Regional Results. Newport: Office for National Statistics.

ONS. (2013). Key Statistics and Quick Statistics for Local Authorities in the United Kingdom - Part 2. Newport: Office for National Statistics.

ONS. (2013). Regional Economic Indicators, March 2013. Newport: Office for National Statistics.

ONS. (2013). Regional Gross Value Added (Production Approach), December 2013. Newport: Office for National Statistics.

ONS. (2014, March 4). Office for National Statistics. Retrieved from ons.gov.uk: http://www.ons.gov.uk/ons/index.html

PWC. (2011). Supply Chain Disruptions damage Brand and Bottom Line. New York, NY: Price Waterhouse Cooper.

PWC. (2012). Supply Chain and Risk Management. New York, NY: Price Waterhouse Cooper.

PWC. (2013). PwC and the MIT Forum for Supply Chain Innovation: Making the right risk decisions to strengthen operations performance. New York, NY: Price Waterhouse Cooper.

Rumfitt, A. (2012). Give them some credit! - A survey of the barriers to funding the UK’s automotive supply chain. London: The Smith Institute.

SEMTA. (2010). UK Summary Report (2010). Watford: Science, Engineering, Manufacturing, Technology Alliance.

SEMTA. (2010). Wales Sector Skills Summary. Watford: Science, Engineering, Manufacturing, Technology Alliance.

Sissons, A. B. (2011). Do Enterprise Zones Work?. London: The Work Foundation. SMMT. (2012). Specialist car manufacturing A uniquely British success story. London: The Society of Motor Manufacturers and Traders Limited.

SMMT. (2013). the society of motor manufacturers and traders motor industry facts 2013. London: The Society of Motor Manufacturers and Traders Limited.

Statistics Wales. (2013). Priority Sector Statistics, 2013. Cardiff: Welsh Government. Statistics Wales. (2013). Size Analysis of Welsh Businesses, 2013. Cardiff: Welsh Government.

Statistics Wales. (2014). Index of production for wales and index of construction for wales, Quarter 3, 2013. Cardiff: Welsh Government.

Statistics Wales. (2014). Key Economic Statistics - January 2014. Cardiff: Welsh Government.

Stonebraer, P. (2009). Weak links in the supply chain: measuring fragility and sustainability. Journal of Manufacturing Technology, 161-177.

Taleb, N. (2013). Anti-fragile: Things that Gain From Dissorder. Chicago, IL: Penguin. TSB. (2012). High Value Manufacturing Strategy (2012-2015). Swindon: Technology Strategy Board.

UKCES. (2011). Skills for Jobs - Wales - Audit Report (2011). London: UK Commission for Employment and Skills.

UKCES. (2011). Skills for jobs, The National Strategic Skills Audit for Wales 2011. London: UK Commission for Employment and Skills.

WEF. (2013). Manufacturing for Growth Strategies for Driving Growth and Employment. Geneva: World Economic Forum.

Welsh Air Forum. (2014, March 4). Welsh Air Forum. Retrieved from welshairforum.co.uk: http://www.walesairforum.co.uk/

Welsh Automotive Forum. (2013). Welsh Automotive Forum - Directory of Member Companies 2013. Bridgend: Welsh Automotive Forum.

Welsh Government. (2012). A report on the progress and future remit of Sectors and their Panels. Cardiff: Welsh Government.

Welsh Government. (2012). AM&M - Aerospace and Defence sector Overview. Cardiff: Welsh Government.

Welsh Government. (2012). AM&M Brochure Overview. Cardiff: Welsh Government. Welsh Government. (2012). Destination of HEI Leavers. Cardiff: Welsh Government. Welsh Government. (2012). Manufacturing in Wales Building a balanced economy on a secure Manufacturing base. Cardiff: Welsh Government.

Welsh Government. (2012). Sectors Delivery Plan. Cardiff: Department for Business, Enterprise, Technology and Science.

Welsh Government. (2013). Automotive Wales. For Advanced Materials and Manufacturing. Cardiff: Welsh Government .

Welsh Government. (2013). Automotive: Low Carbon Brochure. Cardiff: Welsh Government.

Welsh Government. (2013). Just Ask Wales - MRO Brochure. Cardiff: Welsh Government.

Welsh Government. (2013). National Strategic Skills Audit 2012. Cardiff: Welsh Government.

Welsh Government. (2013). Photonics Wales. For Advanced Materials & Manufacturing. Cardiff: Welsh Government.

Welsh Government. (2014, March 4). Stats Wales. Retrieved from statswales.gov.uk: https://statswales.wales.gov.uk/Catalogue