Newsline - April 2001

STRONG SUPPORT FOR PROMOTING PERFORMANCE

Over 120 participants from throughout the construction equipment industry attended our first ever event on competitiveness - the Promoting Performance conference held at the RAF Museum, Hendon.

Keynote speaker was Competitiveness Minister, Alan Johnson MP, who announced that the DTI will provide £15 million over three years to fund regional centres for manufacturing excellence and a supporting national network. He welcomed the Construction Equipment Association’s initiative and stated "Competitiveness is critical in what is an increasingly global market. R & D needs to be increased if we are to make the most of our potential. In 2000 we trailed the US by nearly 25% in labour productivity." The conference showcased the strides made by the UK automotive sector with its Industry Forum programme, launched as a partnership between the SMMT, major motor vehicle manufacturers and the government. The Forum initiative was presented by Mike Baunton, chairman of the Forum and the President of CEA member Perkins Engines, with support from the programme’s Chief Executive, Graham Broome. To date over 400 automotive supplier companies have benefited from the Forum’s Master Classes and supporting initiatives. Also at the conference, master engineers cited real life case studies which showed how the Master Classes had brought real cost savings and efficiency improvements. Senior purchasing staff from JCB, Caterpillar and Komatsu participated in a Q and A session later in the day, giving their perspective on some of the key issues in supplier-OEM relationships.

For more information ask for a free copy of the conference briefing and/or a copy of Quality, Cost, Delivery - seven measures for improved competitiveness in the manufacturing industry. E-mail pam@admin.co.uk.

THE KEY MEASURES

The first four programmes developed by the Industry Forum were Master Class, Value Stream Mapping, Team Leader Training and Supply Chain Group. The Master Class programme forms the basis of the project and involves a highly qualified master engineer in your business to initially measure seven key performance indicators:

· Not Right First Time

· Delivery Schedule Achievement

· People Productivity

· Stock Turns

· Overall Equipment Effectiveness

· Value Added Per Person

· Floor Space Utilisation

From measurement of these key factors, a continuous improvement programme is agreed and implemented. The CEA surveyed its members on these issues and found that 80% felt productivity measures to be important - but on several key indicators there was definite room for improvement. The CEA is taking forward the Forum ideas to examine whether a programme can be devised that is more specific to construction equipment suppliers. Several members have already come forward to volunteer to be part of any pilot programme.