Survival of the fittest

Survival of the fittest
Survival of the fittest

The UK's civil nuclear renaissance might be taking a little longer than expected to arrive but the smart manufacturers have been using the time to make sure that they're in the best position to win work.

The UK's civil nuclear renaissance might be taking a little longer than expected to arrive – due largely to problems securing finance for the new generation of nuclear power stations – but the smart manufacturers have been using the time to make sure that they're in the best position to win work when the new build programme does begin in earnest.

Three nuclear development groups, EDF Energy, Horizon Nuclear Power and NuGeneration are preparing to invest upwards of £60 billion in new power stations in the UK. None of the group has yet made a final investment decision, but EDF Energy has named its preferred bidders for major work packages for Hinkley Point C in Somerset. Around 55-60% of the total investment is likely to be spent with local suppliers.

And with over £1.5 billion a year spent in the supply chain for operations and decommissioning, nuclear does present significant opportunities for manufacturers. There are opportunities now and longer-term contracts in the pipeline for companies which can meet the industry's requirements.

The nuclear top tier demands high standards of quality and management throughout its supply chain. Manufacturers at the lower tiers generally don't need nuclear specific qualifications, but they do need to show that they are ready to meet these standards.

Manufacturers can get help to prepare through the Fit For Nuclear (F4N) programme. Starting with an online assessment which measures a company's operations against the standards required to supply the nuclear industry, F4N provides detailed analysis and tailored support and funding to help close any gaps in performance.

Business alignment

F4N was developed by the Nuclear Advanced Manufacturing Research Centre (Nuclear AMRC, part of the UK's High Value Manufacturing Catapult) in collaboration with the industry's top tier. The programme is delivered in England in partnership with the Manufacturing Advisory Service, part of the government's Business Growth Service.

Colston Engineering is a typical F4N company. As a jobbing engineering contractor the Wiltshire-based firm had tackled the occasional nuclear job such as fabricating flasks, but hadn't actively pursued opportunities in the sector.

Managing director Matthew Heaton started his F4N journey soon after joining the company in late 2013. "F4N seemed to fit the capabilities we had and there were a lot of management things in there that I wanted to do anyway so it was handy as a tool to drive change through the organisation," he recalls.

Following the online assessment, site visits from the F4N assessors and help with creating an action plan, Colston is now taking further steps identified by Nuclear AMRC supply chain specialist Martin Ride.

"Martin's audit gave us the next level to go for, to align ourselves with what companies like Alstom are going to require," Mr Heaton says. "It's making sure these guys know who we are, and being involved in all the major programmes that are going on."

F4N has been a big driver for change, Mr Heaton says, by helping his team focus on the steps it needed to take to drive improvements and achieve the goal of doubling turnover in the next five years. "It certainly got us moving faster and doing the right things – the things we probably wouldn't have done if we weren't incentivised to do it," he reveals. "Fit For Nuclear has really made us think about what we do, and what we're good at doing."

Driving change

F4N has helped companies take major strategic steps to better bid for nuclear work. Burnley-based Fort Vale Engineering created a dedicated nuclear business after F4N highlighted the sector's requirement for a different approach.

A leading manufacturer of stainless steel valves and fittings for bulk fluid transportation, Fort Vale won its first nuclear contract in 2008. "At that point we had one customer in nuclear and were looking at our competencies, skills and capabilities and trying to really understand how the market fitted together," affirms Pete Staveley, now general manager of Fort Vale Nuclear.

"The F4N assessment worked for us because it made the gap of where we were and where the industry would like us to be transparent. It allowed us to analyse where we could maximise adding value to the customer, especially in terms of what the industry expects from the supply chain. We saw F4N as a very positive vehicle to get there."

The actions that came out of the F4N assessment helped Mr Staveley and his fellow Fort Vale directors take the decision to create a new standalone business to target nuclear work.

"The decision to create Fort Vale Nuclear enabled the nuclear business to grow in its own right, through its own business model and suitable business processes aligned with the nuclear industry," he says. "Since the incorporation in March 2014, we've continued to grow and are now looking at our own opportunities. We believe it gives our current and future customers the confidence that we are serious about being a long-term player in the nuclear sector."

The right mindset Although it's targeted at nuclear requirements, F4N can also support the kind of general business improvements which can be applied across the engineering market. Bradford-based Graham Hart (Process Technology), a specialist producer of high integrity heat transfer and pressure equipment, is seeing benefits from F4N across its operations.

Initiatives supported by F4N include lean training for all staff and a new graphical system for factory planning and resource allocation. "We've completely changed the manner in which we approach manufacture of our high integrity equipment for all of our customers," says technical director Charles Byrne.

Graham Hart also looked at its own suppliers to make sure they could meet nuclear requirements. "We had to increase our existing supply chain, to meet with companies who understood and valued the nuclear standards we are all expected to adhere to," Mr Byrne says. "Thankfully, the number of suppliers is increasing all the time through programmes like F4N and the RCC-M users group. It's becoming easier to locate and meet with companies who share a nuclear mindset."

Graham Hart is now talking to a number of companies in the French civil nuclear supply chain, as well as UK groups, and has received several invitations to quote for Hinkley Point C.

Completing the F4N journey does requirement significant commitment and time, the team notes. "We had to readjust ourselves as a company and realign our strategy, but that's been a really good thing," says managing director Chris Hart. "It's almost been like doing due diligence – it's paid big rewards overall, not just in the nuclear sector."

So far, over 300 companies have taken the online F4N assessment with most receiving ongoing support. Almost 100 have reached the final stage of developing and implementing a detailed action plan, pushing their performance and capabilities and making sure that they're in the best position to win work.

Thanks to £1.5 million from the Regional Growth Fund, F4N is now offering grants to participating companies based in England, to help them close performance gaps or improve their competitive position. Around 40 projects have already started, with more to be awarded.

With further new build announcements expected before the end of the year, it's still not too late to get fit for nuclear.

Fit For Nuclear
www.namrc.co.uk/services/f4n   Five tips for becoming Fit For Nuclear Nuclear AMRC supply chain consultant Martin Ride highlights his top advice for companies wanting to win business in nuclear.
1. Create a robust strategic plan – and act on it
Create a strategic plan with detailed and realistic actions, which can be rolled out across the whole organisation. To help everyone understand and engage with the plan, present your progress visually in your office and workshop areas, and make sure it's regularly maintained and updated.

2. Embrace quality management
A good quality management system is essential. It doesn't have to be formally accredited, but it must be fully embraced at all levels of the organisation. Your quality management system will be the engine room of your business, and should be underpinned by a robust audit and continuous improvement plan.

3. Manage every step of your projects
Project management is key. You need to demonstrate to nuclear customers that you are in control of every stage of your manufacturing and management processes and performing against plan. Good communication with clients is vital to ensure you meet their quality requirements, and can deliver on time.

4. Make health and safety everyone's business
Everyone within the company must understand the vital importance of health and safety and comply to its requirements. The nuclear industry has a painstaking and engrained safety culture and expects suppliers to meet the same standards. All your staff will need to embrace this, and be prepared to drive continuous improvement.

5. Put your people at the heart of your business
People make a business work. They deliver the company projects and its rewards. Make sure your staff are supported by management, have all the training and qualification they need, and understand what you're doing – and they will deliver the performance and loyalty that's the hallmark of a successful and sustainable business.

 

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