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A little help for manufacturers

Article Date:  May 01 2004

Oldham-based Innovative Technology, which designs and manufactures a range of low-cost bank note validators, employs 150 people and has a turnover of £15 million.

During the past two years, the company has improved its operations by implementing a variety of measures as advised by The Manufacturing Institute, the North West regional centre for the Department of Trade and Industry’s (DTI) Manufacturing Advisory Scheme (MAS). As a result, Innovative Technology has saved £1.5 million.

MAS was set up in April 2002 to provide practical advice to manufacturing companies throughout England and Wales. There are currently 10 regional centres. With the Government investing £15 million of DTI funds into MAS, and the Regional Development Agencies (RDAs) matching this amount, manufacturing companies are able to receive a free diagnostic service to identify areas where improvements can be made.

After receiving a diagnosis, a team was set up at Innovative, with the assistance of a MAS practitioner.

‘Although the overall project took 18 months to complete, it only took up 19 days of the practitioner’s time,’ says Mike Price, the director of operations at The Manufacturing Institute. ‘Companies can receive £250 project support each day from MAS and the RDA for ten days (in the North West under its Agenda for Change the limit is 30 days), which is in effect a 50 per cent subsidy. For a cost of £6,500, the company has made a hefty saving of £1.5 million.’

A number of lean manufacturing techniques were implemented within each area of the production process to speed up activity. For example, in order to resolve the issue of unknown moulding capacity and frequent shortages of moulded parts, a low-cost capacity plan was developed.

‘I have never before been involved in an improvement project that has had such a profound effect upon a company’s culture and direction,’ says Innovative Technology’s production director Stephen Jackson. ‘Our next challenge is to ensure it sticks.’

To find out more about MAS and your nearest regional centre, visit the website at www.mas.dti.gov.uk.

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