Technology: High value manufacturing


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Presentation by Robin Wilson, Lead Technologist, High Value
Manufacturing, Technology Strategy Board.

This was delivered at the Advanced Manufacturin Strategy: One Year On
event held at NESTA, London on 29 October 2009.

Published in: Technology, Business
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  • So, what is our strategy? Two words sum it up Connect, and catalyse [make reference to light sticks?]
  • To quote from Foresight 2020: “Manufacturing is changing – and redefining itself as a provider of lifetime service around a manufactured product”. The definition of manufacturing used by the Technology Strategy Board therefore embraces the whole life-cycle of a product, system or process, rather than the manufacturing process itself. The components of the life-cycle vary somewhat from industry to industry. For example, manufactured goods and process industries follow similar but different steps. However, the broad principles are similar. Our High Value Manufacturing Strategy, which was published last year creates a tool around which we can work with Industry, Academia and Government (national and regional) and to define appropriate ways in which we can co-invest with industry to meet future challenges. Firstly, it’s important to state that the development of the strategy was carried out in close collaboration with these all the partners and we will continue to take this integrated approach, which is why we value the opportunity to present to you today. To develop this strategy we needed to take a step back: to understand the landscape: current state of manufacturing in the UK, strengths and weaknesses to understand the market challenges and the opportunities they present. to take on board the work that had already been invested in defining these. First of all, we’ll take a look at what manufacturing means to the UK
  • So – how are we defining manufacturing. As we discussed at the start of the presentation – through extensive engagement with companies, recognised industry bodies and academia and an appreciation of the changing make-up of manufacturing, we have adopted the broader view rather than focussing on what has traditionally been viewed as manufacturing – “making things”. Production is just part of the overall picture from “cradle to grave” – and understanding the whole life cycle and the opportunities that arise as a result is vital. As consumers/users both commercial and private become more demanding in terms performance over the product lifetime – it has and is becoming ever more important to consider manufacturing from idea to disposal – optimising lifetime performance, reducing cost, increasing reliability, adding functionality – all important commercial differentiators and “value” generators.
  • Manufacturing represents an important strategic element of the UK economy, forming 14 – 15% of GDP and over 50% of exports. On a wider definition (including industrial services, construction and oil & gas), it represents up to 27% of the economy. So perhaps it’s not surprising that despite the widely held belief that the UK’s manufacturing base is a thing of the past, it still competes with the more recognised established and emerging economies In many sectors – such as pharmaceuticals and aerospace, the UK continues to be in a very strong competitive position. That’s not to say that the manufacturing base has stood still…. In many established industries manufacturing principles have changed radically and the real cost of production has fallen substantially. More specialised high-value operations, or completely new industries, have also grown to replace those that have been unable to meet up to evolving global challenges.   Gross Value Added (GVA) GVA is used in the estimation of GDP, which is a key indicator of the state of the economy. In the UK, three theoretical approaches are used to estimate GDP: ‘production’, ‘income’ and ‘expenditure’. All three approaches are balanced annually using the Input-Output Supply and Use Tables accounting framework. The GVA for the manufacturing sector is used in the estimation of the GDP ‘production’ approach. The link between GVA and GDP can be defined as: GVA (at industry level current basic prices)  plus taxes on products (available at whole economy level only)  minus subsidies on products (available at whole economy level only)  equals GDP (at current market prices; available at whole economy level only
  • We have taken this understanding and translated this into “four pillars” –we’ve been mindful to take on a lot of thinking from the CBI, the former DTI and academia – particularly the University of Cambridge. These pillars take into account the need to emphasise that competitive advantage in high wage economies such as the UK’s results from “value-added” elements that sit outside “production” and defines how we have invested and will invest over the three year period 2008-11. These we define as follows: Production Processes: new ways of making things that reduce cost, reduce waste – a focus on technologies that address sustainability challenges. Products: Design and development of innovative products or systems that provide improved performance, functionality, reliability, etc. Service Systems: the development of solutions which complement product offerings by adding value through support services before, during and after manufacture. Value Systems: focus on value networks that extend beyond individual companies or countries. It focuses on the delivery of a mix of products and services within extended global innovation, supply and distribution networks. By understanding how the whole manufacturing system works and we can begin to understand where “added-value” can be exploited. We’ve worked extensively with the Advanced Institute of Management Research to define this space.
  • Against this background, there is merit in the UK focusing its attention towards manufacturing sectors which are likely to give better results in terms of wealth and job creation. An analysis of UK manufacturing has been undertaken to assess which sectors (both by Standard Industrial Classification – SIC – code and by Industry Classification Benchmark – ICB) are particularly important to UK manufacturing. In performing this analysis, a number of reports and stakeholders were consulted. Sector attractiveness for UK wealth creation was then assessed by reference to: - Global market size and growth Market share of UK companies and UK strength in that sector Profitability Efficiency in exploiting value for wealth creation Technical intensity Based on SIC classification, the table suggests the areas which should be targeted: In broad terms, therefore, the areas where intervention is likely to be most effective in terms of UK wealth creation are: - Transport Pharmaceuticals and bioscience - Speciality chemicals - High-value, precision equipment, systems and machinery for all sectors - Specialised materials - Oil & gas Construction (particularly off-site manufacture, advanced materials, systems engineering, and process efficiency) This does not imply that other sectors should be ignored but rather that those proposed should be the focus for engagement, or for establishing large projects or initiatives, whereas a more reactive stance should be taken in other areas. But again, if you are familiar with the Technology Strategy Board’s Technology Inspired vs Challenge led strategy, there is strong interplay between defining the market pull from these sectors and mapping on them the technical/operational innovations that may offer solutions.
  • Our most recent competition closed just recently. It was launched in January and addressed “step changes in business performance” – - overall manufacturing costs; - whole life-cycle costs; - whole life environmental impact; - product performance, durability and reliability; - sales volumes; and - time to market. These points related mainly to the first three pillars – Products, Processes and Service Systems. We also ran a co-funded element with ESRC and EPSRC that sought to address the Value Systems pillar. We had an unprecedented response across the entire manufacturing landscape and will be making announcements of successful consortia next month.
  • Technology: High value manufacturing

    1. 1. <ul><li>Technology: </li></ul><ul><li>High Value Manufacturing </li></ul>Robin Wilson Lead Technologist, High Value Manufacturing 29 th October 2009 UK Manufacturing Strategy Progress check - One Year On: NESTA, London
    2. 2. Pod 1 Pod 2 Pod 3 Pod 4 Pod 5 3.10-3.40 Global value chains - UKTI advanced engineering Donald McNeil Technology - High value manufacturing, Robin Wilson, Technology Strategy Board Intangibles - Designing Demand David Godber, Design Council Manufacturing Skills – an interactive session examining supply attraction and workforce development and then looking at skills for the future. Joanna Woolf, Cogent and Lynn Tomkins Semta Low Carbon Industrial Strategy Adam Cartwright, Office for Low Emission Vehicles 3.50-4.10 UKTI – meet the companies exporting in and Meet some of the companies who have been working successfully with TSB Meet some of the companies where design has improved sales Manufacturing the Future: Pat Langford, Director of Programmes, STEMNET will lead a discussion on promoting Manufacturing as an exciting and dynamic career choice. Meet a company who are working hard to inspire young people. Meet companies who are operating successfully in low carbon markets
    3. 3. Who are the Technology Strategy Board <ul><li>We are a national body set up to invest in business innovation </li></ul><ul><li>We are sponsored by Department of Business, Innovation and Skills (BIS – our hosts today) </li></ul><ul><li>We come from business (and the public sector) </li></ul><ul><ul><li>About 100 people, >1200 years of business experience </li></ul></ul><ul><li>We work across business, universities and Government </li></ul><ul><li>We are responsible for investing £1bn </li></ul>
    4. 4. We support the full range of business <ul><li>We help strengthen the global competitive position of our leading businesses </li></ul><ul><li>We identify and grow sectors and businesses with the capacity to become the best in the world </li></ul><ul><li>We nurture the businesses that can succeed in the growth sectors of tomorrow </li></ul>
    5. 5. And we make choices <ul><li>We don’t pick winners, we pick sectors where UK businesses can thrive and support innovative companies in them </li></ul><ul><li>We consider the size of the markets, the capability of the UK to address them and the timing </li></ul><ul><li>And the difference our support would make </li></ul>
    6. 6. How we deliver
    7. 7. Technology Inspired Innovation <ul><li>We build capability in the underpinning areas that enable a sure and effective response to market needs </li></ul><ul><ul><li>Advanced materials </li></ul></ul><ul><ul><li>Bioscience </li></ul></ul><ul><ul><li>Electronics, photonics and electrical systems </li></ul></ul><ul><ul><li>Information and communication technologies </li></ul></ul><ul><ul><li>High value manufacturing </li></ul></ul><ul><ul><li>Nanotechnology </li></ul></ul>
    8. 8. Our Tools for Prioritisation and Delivery <ul><li>Published Technology Strategies </li></ul><ul><ul><li>To communicate funding priorities and rationale </li></ul></ul><ul><ul><ul><li>eg: High Value Manufacturing Strategy (Sept 2008) </li></ul></ul></ul><ul><ul><li>To provide clear, consistent focus for funding applicants </li></ul></ul><ul><li>Competitions – collaborative R&D projects </li></ul><ul><ul><ul><li>eg: £24m High Value Mfg, launched January 2009 </li></ul></ul></ul><ul><li>Additional funding mechanisms </li></ul><ul><ul><ul><li>SBRI for R&D contracts (Government procurement) </li></ul></ul></ul><ul><ul><ul><li>Large (>£5m) CR&D Projects, assessed on individual basis </li></ul></ul></ul>
    9. 9. Our Investment (Assessment) criteria Model for success: a convincing “yes” to these 4 questions Can the UK do it? Is there a large market opportunity? Is the idea ‘ready’? Can the Technology Strategy Board make a difference?
    10. 10. Manufacturing Strategy <ul><li>Working with Industry </li></ul><ul><li>Working with Academia </li></ul><ul><li>Working with Government </li></ul><ul><li>Working together </li></ul><ul><li>Developing a common understanding of challenges and opportunities </li></ul><ul><li>Prioritising investment in key areas </li></ul><ul><li>Publish Strategy, launch CR&D competitions </li></ul>
    11. 11. Manufacturing Through Life <ul><li>Not just production </li></ul><ul><li>Interfaces forwards and backwards </li></ul>HIGH VALUE MANUFACTURING Research Design & Development Production Sale Service Operation Decommission
    12. 12. We are world’s 6 th largest manufacturer
    13. 13. The Four ‘Pillars’ of the HVM Strategy The strategy includes key manufacturing activities that enhance competitive advantage in high wage economies; … and it recognises that large amounts of value-add and value-capture occur outside production – …and that technology may bring innovation in all areas . Products Production Processes Service Systems Value Systems
    14. 14. Prioritisation .. in areas of high growth + high R&D intensity Growth R&D Intensity
    15. 15. High Value Manufacturing Competition <ul><li>The Step Change in Competitiveness / Value Systems Competition was launched in January 2009 and invited businesses in a broad range of industry sectors to form consortia and compete for funding. </li></ul><ul><li>The aim was for companies to achieve major improvements of between 25% and 50% relative to their current performance in areas such as overall manufacturing costs, whole life-cycle costs, whole life environmental impact and product performance, durability and reliability.  </li></ul>
    16. 16. January 09 Competition - metrics <ul><li>£24M – Step Change in Competitiveness and Value Systems </li></ul><ul><li>Your Response </li></ul><ul><ul><li>500 downloads (enquiries) </li></ul></ul><ul><ul><li>300+ EoIs (>£300M investment requested) </li></ul></ul><ul><ul><li>87 Full Proposals assessed </li></ul></ul><ul><ul><li>32 projects shortlisted for funding </li></ul></ul>
    17. 17. And the results – how the £24m was won Sector/SIC Group Number of projects TSB funding (£m) TSB Funding (%) Bioscience & Healthcare 13 9.1 38 Special Purpose Machinery 8 4.9 20 Automotive 3 3.4 15 Aerospace 2 2.5 10 Electrical 1 1.1 5 Non Ferrous Metals 1 0.9 4 Construction 2 0.8 3 Agrochemicals 1 0.7 3 Environmental 1 0.6 3 Total 32 24 100
    18. 18. Some of the Winning Consortia – here today at NESTA <ul><li>SHIELD Project </li></ul><ul><li>Simon Collins </li></ul><ul><li>Pete Ellison </li></ul><ul><li>Tom Pinto </li></ul><ul><li>Venu Kumar     </li></ul><ul><li>BIOCHEMIST Project </li></ul><ul><li>  Kay McClean </li></ul><ul><li>CELL THERAPIES Project </li></ul><ul><li>Tina Crombie </li></ul><ul><li>  </li></ul>  HEPTACORE Project   Mike Whelan   RAPIDPART   Project Russell Owen, Weir Valves Peter Brown, TWI STEP Project Keith Freebairn  Professor Ian Sutherland
    19. 19. Discussion <ul><li>Consortia members – you are our customers ! </li></ul><ul><li>Customer satisfaction? </li></ul><ul><li>How did you hear about the competition? </li></ul><ul><li>Is the subject scope (technology) right for you? </li></ul><ul><li>Funding and timescales? </li></ul><ul><li>What do we (TSB & BIS) do right? </li></ul><ul><li>What could we improve on? </li></ul><ul><li>Other contributions & feedback? </li></ul>
    20. 20. SHIELD <ul><li>Summary: The aim of project SHIELD is to develop novel acetabular and femoral components that minimise bone resorption. This will be achieved through a combination of component design and material optimisation by which the load transfer from prosthesis to bone will attempt to mimic bone stress levels pre-operation. The objective is to develop an innovative solution to the problem of stress shielding in hip implants therefore increasing the efficacy of total hip prostheses by increased life span and a reduced need for revision surgery after failed implantation. </li></ul><ul><li>Partners: </li></ul><ul><ul><li>Corin Ltd (lead), </li></ul></ul><ul><ul><li>Invibio Biomaterial Solutions Ltd, </li></ul></ul><ul><ul><li>Durham University </li></ul></ul><ul><ul><li>TWI Ltd, </li></ul></ul><ul><ul><li>Imorphics Ltd, </li></ul></ul><ul><ul><li>Continuum Blue Ltd. </li></ul></ul>
    21. 21. BIOCHEMIST <ul><li>Title: Biocatalysis and Chemical Engineering for Manufacturing Intensification and Sustainability - BIOCHEMIST </li></ul><ul><li>Summary: This project will integrate all phases of bioprocess development from catalyst discovery and engineering, to process design, through to highly efficient small footprint manufacture of high value products - enhancing the efficiency, sustainability and flexibility of chemical manufacture. The principle objectives of the project are (a) a novel compact reactor system for efficient continuous chemical manufacture, (b) advanced process design to accelerate introduction of new bio-manufacturing processes and products (c) new competitive bioprocesses to prepare unnatural amino acids and chiral amines. </li></ul><ul><li>Partners: </li></ul><ul><ul><li>C -Tech Innovation Ltd (lead), </li></ul></ul><ul><ul><li>Ashe Morris Ltd, </li></ul></ul><ul><ul><li>Ingenza Ltd. </li></ul></ul>
    22. 22. STEP <ul><li>Title: Scalable Technology for the Extraction of Pharmaceuticals - STEP </li></ul><ul><li>Summary: We plan to develop small footprint, versatile, counter-current chromatography purification technology and methodology which can be operated at a range of scales in both batch and continuous modes and that can be inserted into existing process plant and systems. The consortium will address major production challenges aiming to provide a flexible, low capital capability driving substantial cost efficiency in both drug development and drug manufacturing processes. </li></ul><ul><li>Partners: </li></ul><ul><ul><li>GlaxoSmithKline Research and Development Ltd (lead) </li></ul></ul><ul><ul><li>Brunel University </li></ul></ul><ul><ul><li>Pfizer Limited </li></ul></ul><ul><ul><li>Dynamic Extractions Ltd. </li></ul></ul>
    23. 23. MANUFACTURE OF CELL THERAPIES <ul><li>Title: Advanced manufacturing process for the production of individualised cell therapies </li></ul><ul><li>Summary: Individualised cell therapies (&quot;ICTs&quot;) for the treatment of cancer, autoimmune disease, and infectious disease are progressing through regulatory approval for clinical use. ICTs are generally based on natural or genetically enhanced immune cells with disease-fighting applications and are therefore distinct from regenerative stem cell therapies. This project aims to achieve the first advanced cell manufacturing system (the &quot;CellPro Manufacturing System&quot;) to support the routine clinical use of ICTs on a cost-effective and convenient basis. </li></ul><ul><li>Partners: </li></ul><ul><ul><li>Cell Medica Ltd (lead) </li></ul></ul><ul><ul><li>University College London, </li></ul></ul><ul><ul><li>eXmoor pharma concepts ltd. </li></ul></ul>
    24. 24. RAPIDPART <ul><li>Title: RapidPart - Significant Step Change in the Selective Laser Melting Powder Bed Process for the Manufacture of High Value Components </li></ul><ul><li>Summary: RapidPart will deliver step change reductions in the manufacturing cost of laser powder bed deposition, or Selective Laser Melting (SLM), by significantly increasing the speed of the process. The targeted 500% increase in processing speed will enable this high value, flexible and environmentally-friendly process to become commercially viable for a more widespread range of applications, giving the UK a technical advantage and world lead in laser additive manufacture. </li></ul><ul><li>Partners: </li></ul><ul><ul><li>Weir Valves and Controls UK Ltd (lead) </li></ul></ul><ul><ul><li>TWI Ltd (Academic) </li></ul></ul><ul><ul><li>Thinklaser Limited, </li></ul></ul><ul><ul><li>MTT Technologies Ltd, </li></ul></ul><ul><ul><li>SPI Lasers UK Limited </li></ul></ul><ul><ul><li>Disenco Limited, </li></ul></ul><ul><ul><li>Materialise UK. </li></ul></ul>
    25. 25. HEPTACORE <ul><li>Title: Commercial manufacture of a novel dual hepatitis vaccine (Hepatacore) </li></ul><ul><li>Summary: The aim of this project is the further development and commercial manufacture of a tandem-core technology (TCT) vaccine candidate, such that a clinical trial may be undertaken. TCT allows the insertion of at least two different viral antigens into a single highly immunogenic recombinant protein. This results in a vaccine which can deliver immunity to two viruses simultaneously within the confines of a single construct. This project intends to manufacture commercially a combined hepatitis A and B vaccine (HAV/HBV). </li></ul><ul><li>Partners: </li></ul><ul><ul><li>iQur Ltd </li></ul></ul><ul><ul><li>University College London </li></ul></ul><ul><ul><li>Mologic Ltd. </li></ul></ul>
    26. 26.
    27. 27. Helping you stay competitive <ul><li>Manufacturing Strategy </li></ul><ul><ul><li>We believe our September 2008 HVM strategy (and the Government’s Manufacturing Strategy published at the same time) remain valid and relevant, in recession and for recovery. </li></ul></ul><ul><li>Additional Funding </li></ul><ul><ul><li>£150m Advanced Mfg package (July, Gov’t) </li></ul></ul><ul><ul><li>£5m extension to HVM competition (July, TSB) </li></ul></ul><ul><ul><li>£1m Technology Inspired Feasibility (Sept, TSB) </li></ul></ul><ul><ul><li>Further TSB competitions with significant manufacturing content planned for 2010. </li></ul></ul>
    28. 28. e: t: 01793 442938