Welcome

Increasingly Corporate Social Responsibility (CSR) is hitting the headlines. Richard Lambert, director general of the CBI, was recently quoted as saying that corporate responsibility was not "an optional extra", and that businesses had to be "fully integrated actors at the heart of our society, not least in dealing with climate change".

He added: "In a cynical age, business has to do more to persuade the public that it deserves to be trusted, and that society has a very real interest in the health of the business sector."

The increasing volume on CSR, however, is equally matched by confusion on legitimate CSR practices and what businesses can do to take account of the economic, social and environmental impact of the way they operate.

The key thing to recognise and embrace is that as a business you are part of a wider community and as such are accountable for more than your financial performance. But this responsibility can be a heavy burden on the resources of small and medium-sized businesses particular when, in most cases of CSR, there is no immediate, tangible return.

So, what are the benefits to manufacturers of adopting CSR? Building your reputation and providing a competitive advantage are often highlighted as outcomes. On the environmental side, good practice can lead to waste and emission reductions both of which provide financial and tax breaks. And lean manufacturing, as advocated by the MAS, can play a big part in this as its natural by-product is waste minimisation and more effective working.

Another key benefit of CSR is the attraction and retention of staff, as many of us increasingly expect employers to work in an ethical way where broader social issues are concerned. According to Business in the Community, 88 per cent of British employees believe that it is important to work for an organisation that is committed to living its values. This is never truer than with young people who are interested in more than their basic rate of pay when it comes to selecting an employer of choice.

There is no “one-size fits all” when it comes to CSR as activities and benefits are directly related to a company’s core activity and the values of its people. Whether it be supporting local schools and colleges, participating in careers advice days, hosting plant tours or getting involved in charity events, companies must be allowed to define CSR for themselves.

Arthur Richardson

Director

South West MAS

Tell us about your CSR practices, email info@swmas.co.uk. The best email will be awarded a copy of John Bicheno's book ‘The Lean Toolbox' and included in next month’s E-newsletter.

Case Study

South West MAS brings Stanley Security under one roof

Stanley Security Solutions in Exeter is a leading provider of security, communication and time and attendance systems. With 25,000 customers globally, the company is part of Stanley Works - a New York Stock Exchange top 500 company which operates in 131 countries to supply tools, hardware and security solutions.

Following the acquisition in 2004 of the Blick Group, the company made a decision to consolidate its operations and become officially known as Stanley Security Solutions. The name change represented a new phase for the company and the move to bring all manufacturing, warehousing, distribution, procurement and operational support, under one roof created key operational challenges.

Having previously worked with Blick Communications in Exeter, the South West MAS was invited to work with Stanley on a project called ‘One Org’. The project focused on best practice and consolidating the various UK manufacturing sites of the companies to create one ‘manufacturing centre of excellence’ in Exeter.

To read this story in full click here.

For more information on support available from the South West MAS, call our helpdesk on 0845 608 3838 or email info@swmas.co.uk

News

Welcome to the Department for Business, Enterprise and Regulatory Reform

Prime Minister Gordon Brown has replaced the Department for Trade and Industry (DTI) with the Department for Business, Enterprise and Regulatory Reform (BERR), led by John Hutton who was previously Secretary of State for Work and Pensions.

The new Department works to create the conditions for business success through competitive and flexible markets that create value for businesses, consumers and employees. It drives regulatory reform, and works across Government and with the regions to raise levels of UK productivity. BERR brings together functions from the former Department of Trade and Industry, including responsibilities for productivity, business relations, energy, competition and consumers, with the Better Regulation Executive (BRE), previously part of the Cabinet Office.

The Department leads on making sustainable improvements in the economic performance of the regions. It is jointly responsible, with DfID and the FCO respectively, for trade policy; and trade promotion and inward investment.

BERR will also provide support to the new Business Council for Britain. The Council, made up of senior business leaders, will assist the Government in putting in place the right strategy to promote the long-term health of the UK economy.

It will work closely with the new Department for Innovation, Universities and Skills (DIUS). DIUS will be responsible for driving forward the Government’s long-term vision to make Britain one of the best places in the world for science, research and innovation, and to deliver the ambition of a world-class skills base.

Going for Green - launch of Devon's Environmental Business Awards

The search is on to find Devon’s greenest businesses. The Devon Environmental Business Awards 2007 have now been launched and organisers DEBI – the Devon Environmental Business Initiative – are expecting a record number of entries from across the county proving that more organisations are warming to the challenges and opportunities brought by climate change.

The annual business competition has become increasingly popular and competitive as more and more businesses set out to prove that sustainable is successful. DEBI’s chairman, Andy Vickery, says winning one of the awards is a great prospect for any local business:

“To be publicly acknowledged as one of the greenest businesses in arguably the greenest county in the country is a fantastic opportunity for any organisation and its reputation.”

Environmentally-savvy businesses, charities and organisations have the opportunity to win in four categories, one of which will become the overall DEBI winner, 2007. Last year the emerald crown was awarded to Ivybridge-based company Bandvulc tyres which showed outstanding commitment to reducing its energy consumption and in doing so managed to cut its annual bills by £45,000. Bandvulc’s Director, Richard O’Connell says winning the award has helped the company’s image: “The DEBI award has been a welcome recognition to Bandvulc, its staff and associates all of whom are consistently developing ways to reduce waste and energy.”

A new category has been added this year in the form of the DEBI Renewable Energy Award which is aimed at suppliers of renewable energy systems, researchers as well as businesses and organisations that have made the switch to renewable power supplies, such as, solar, wind generation and biomass.

Organisations that have taken steps to reduce their carbon footprint also have the chance to win this year’s Low Carbon Business award. Finally, the Greening Devon category will be looking for a winner from a diverse range of entries including schools and charities whose efforts have benefited the whole of the county.

If you’d like to enter the awards or would like more information on DEBI visit www.debi-online.org.uk or call 01395 446090.

A Day in the life of John Joseph, Operations Manager at Burts Potato Chips

I have overall responsibility for all purchasing, manufacturing and distribution of our product range of batch fried potato chips and batch fried roots chips. It’s my responsibility to ensure that the factory and its teams are equipped to meet demand whilst ensuring that we also reach margin targets.

My day usually starts around 8am when I walk around the operation. This is mainly an exercise to ensure that there are no critical issues to deal with and to ensure that I get the opportunity to say good morning to everyone. We carry out a number of internal auditing systems, such as 5S, and I will use this morning walkabout to pick up on the findings of these audits.

I chair an operations daily review meeting at 9am each day. At this meeting, team leaders from the various departments will update KPIs from the previous day’s production. These KPIs are based around production efficiency, plan completion, quality, customer supply and health and safety. If we fall short of agreed targets, we will agree actions to get us back on target. Many of these actions will have an immediate timescale and are therefore constantly reviewed during the day.

To read this story in full click here.

If you would like to be featured in the new ‘Day in the Life’ column, please contact the South West MAS on info@swmas.co.uk

South West MAS hits £35 million mark on fifth birthday

Delegates on the Operational Leadership Programme – one of South West MAS’ great successes this year!

The South West MAS is celebrating its fifth anniversary and the news that it has helped manufacturers create £35 million of increased value for their businesses.

Created by the Department of Business, Enterprise and Regulatory Reform (BERR) and funded by South West of England Regional Development Agency (RDA), the South West MAS is one of ten regional Manufacturing Advisory Services with a brief to help manufacturing businesses improve their productivity and competitiveness.

During its five years of operation, the South West MAS specialists that have years of hands-on experience in the industry, have visited more than 780 manufacturers in the region to help them devise strategies for growth, improve their efficiency and develop their teams.

Arthur Richardson, director of South West MAS, says: “We were set up to address the practical needs of manufacturers in the South West and have made it our aim to develop programmes and support that make a real difference, not just to manufacturers' bottom line but also their future security and success. Manufacturing is continuously evolving and so we have sought to ensure our service does the same in order to have the greatest impact.”

To read this story in full click here.

Offshore? Be Sure!

Due to the fact that a quarter of manufacturing projects fail when relocated to low cost foreign locations, the South West MAS has launched a new toolkit to help manufacturers identify the threats and opportunities of offshoring and ensure any decisions taken are tactically and strategically sound.

The South West MAS has partnered with The Manufacturing Foundation to launch ‘Offshore? Be Sure!’ which provides practical and constructive guidance on the issues relating to globalisation – with particular emphasis on India and China as the most influential developing economies.

The offshore decision-making toolkit comprises two books - a Workbook and a Resource book providing background information and statistics. The toolkit is delivered by a trained MAS specialist who will provide expert assistance to guide companies through the various sections.

Arthur Richardson, director of the South West MAS, said: “The decision to look offshore for opportunities to maintain competitiveness is complex. Companies should pay due consideration to the total acquisition cost, the inherent supply risks and the potential impact on the remainder of the business. Cheaper labour rates are not the only factor – there is much more to consider. A total of 25 per cent of offshoring projects fail – this is usually as a result of a lack of appropriate information and inferior consideration, which has led to costly decisions being made in industry.”

If you would like to find out more about ‘Off Shore? Be Sure!’, please contact the South West MAS helpline on 0845 608 3838.

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For further information on any of the issues or items mentioned above, or on the South West Manufacturing Advisory Service in general, contact us on 0845 608 3838; email info@swmas.co.uk or visit http://www.swmas.co.uk