Post on 08-Jan-2017
World Class Tape Solutions
Scapa Group plcOperations Update
October 2011
Operations
World Class Tape Solutions
• Leverage global footprint to achieve economies of scale
• Optimise operational effectiveness
• Implement global supply chain structure and strategy
• Expand Asian manufacturing
• Instil highest level of Environmental, Health & Safety
Footprint
World Class Tape Solutions
Operations Manufacturing Clusters
• UK – Ashton & Dunstable
• Mainland Europe – Valence (France), Ghislarengo (Italy), Rorschach (Switzerland)
• NA (East) – Renfrew (Canada), Windsor (US)
• NA (West) – Inglewood (US)
• Asia – Korea, China (conversion)
Scapa is a global developer and manufacturer of specialist technical tapes for the Medical, Industrial, Consumer, Transportation, Electronics and Energy markets.
World class, inspired, market driven team, focused on optimising customer & shareholder value through responsible, agile delivery of specialist tape solutions.
Footprint – Market Focus
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• Dunstable• Windsor, InglewoodMedical
• KoreaElectronics
• Rorschach, Renfrew, Ashton• Valence, Windsor, Ghislarengo, Dunstable Industrial
• GhislarengoTransportation
Footprint – Site Competence
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Ashton
• Calendared rubber & plastics. Water based acrylics
• Slitting & packing
Dunstable
• Solvent Acrylics. Foam –PVC & PU
• Adhesive – PU & solvent-less liquids
• Die cutting & converting
Ghislarengo
• Solvent rubber adhesives. PVC substrates
• Slitting & packing
Inglewood
• Finishing• Die cutting & converting
Korea
• Acrylic Foam Tape• Calendared rubber
Renfrew
• Calendared rubber & plastics
• Slitting & packing
Rorschach
• Solvent rubber & silicone adhesives. Solvent & water based acrylics
• Slitting & packing
Valence
• Solvent rubber adhesives• PU liquid sealants• Slitting & packing
Windsor
• Solvent acrylic adhesives• Slitting
Process Flow
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Film Extrusion
Adhesive Mixing
Coating Slitting
Converting
PackingRaw Material
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Future Shape
Medical
Electronics
Industrial
Phase 1 – Implementing The Basics� Service and Quality improvements� Cost Out and execution rigour� Capacity management� Consolidate satellite sites� Supply Chain infrastructure� EHS Infrastructure
Phase 2 – Fit For Purpose• Medical
� Quality/Regulatory expertise� “Clean” facilities -> Building upgrades• Component sourcing• Assembly -> Sterilisation -> Packaging� Project Management for NPD introduction• Customer intimacy at all levels
• Electronics� Local manufacturing• Bolt on acquisition(s) -> China, India� Project Management for NPD introduction• Component sourcing• Components -> Assembly
• Industrial� Make/Buy for full product range� Excellence in converting, finishing &
distribution• Localised Late Point Customisation� Faster NPD cycle
2010/11 £192mConsumerEmergingIndustrialMedicalTransportationAsia
Operational Strategy-making progress
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Status• RLIP stable over last 12 months ~80%-85% • Day-to-day & month-to-month Service & Overdues
dashboard driving process
Focus Update• Sales & Operations Planning Process
• Improve in EU.....started in Q1• Start in NA.......starting in Q2
• Product simplification -> radical surgery in Industrial....good progress in REN, starting in ASH, DUN, still work in progress
• Capacity Management (-> price elasticity, LT mgmt)• Optimise coating ->2x5/3x5 shift optimisation• Slitting -> Flexibility
• Customer Care Improvements.....<3day order confirmation 93%-95%
• Customer Expectation Management• Critical FGS & WIP management....Global Demand
Planning Manager appointed• NPD Implementation.....Stage Gate operational in EU• Utilise SAP tools
Service
World Class Tape Solutions
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Status• Customer Complaints reduced by ~60% over 24
months• 30 day closure rate ~80%
Focus Update• Simplify ICS Complaints process....new intranet
system in place• Quality systems gap audit
• To ISO13485 Medical• DUN, WIN, ING complete• Customer audits
• Sharepoint development.....in place• “Top 5” review process.....ongoing and moving to a
‘process’ focus• Supplier Quality.....just starting• Training....8D Structured Problem solving
complete..next step SPC 1-0-1
Quality
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Focus Update
• Coating machine utilisation/uptime......now measuring Coater utilisation and changeover times
• Coating excellence ......targeted capex upgrades at Windsor, Valence, Ghislarengo
• Material scrap projects.......project deck execution• Quality improvements.....moving from single events
to process focus• Product simplification (-> Industrial surgery)
.....beginning but still work to do• Project deck development and execution• Lean opportunities
Cost Out
Status
• Metric . Variable Cost Productivity – Reduction in last year’s variable costs adjusted for Vol/Mix, PPV and exceptionals (eg inventory revaluations)
• Material. Starting to see some VCP – scrap reductions
• Labour. Continued efficiency improvements. Direct headcount (37) VLY
• OVC . Improvements largely D&L and M&R cost control
• Base Cost. ‘Control’ and ‘offset’ mindset well in place, now driving cost reductions. Indirect headcount (8) VLY
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• Branly – Dismantle 109 cloth stenter, calender
(EHS), Corona treatment (EHS), 107 line, internal double mill cylinder (EHS), internal rubber piston mixer (EHS), Z-blade mixer (EHS), water based adhesive turbine
– 105 coating line (end Q3)• Palissy
– 2 rewinding rolls, 2 old packing lines replaced by new line (mid Q3)
– FA300 arrival (Q4) will eliminate 4 more machines
• Rorschach– >30 pieces equipment ‘pensioned off’’– Exited Finimat products– Exited some low volume Industrial
• Ashton– ALS small converting cell simplification– PIB Cell. Moved closer to create cell– Cable Cell. Relocated SE600 to create cell– Conversion Cell. Moved 8 assets to
rationalise into higher utilisation cell
• Renfrew – Duct Tape. Rationalised 7 product groups
to 2– Gaffer Tape. Rationalised 10 colours to 3– Consumer Tapes. 618 active SKU’s now
reduced to 342• Dunstable
– In process of relocating Luton slitter to Dunstable
– Rationalised Industrial Foam conversion to predominately logs
– Exited Hydrocolloid manufacture• Korea
– Cloth line exit. Currently building transfer stocks
Lots done but still lots to do!
Cost Out-Simplification
Investing in Electronics
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R&D Laboratory
• Installation during January-March• Location close to key customers• Pilot UV Coater for product development• Development solvent coater• Environmental conditioning, product testing &
validation
AFT Capacity Expansion
• Installation during January-February• Validation through March-May• Now in production for some product• Delivers high performance Foam Tape for Electronics
& Solar applications• 2x today’s capacity
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Phase 1� Leadership in place� Organisation diagnostic� Spend analysis� Systems data/analysis
Phase 2� Supplier Engagement� Skills Upgrade• Implement Organisation Design• Systems/data Configuration
Phase 3� Opportunity Short List• Identify ‘preferred suppliers’• Implement Systems/data configuration & controls• Link to NPD process
Phase 4• Optimise procurement operations• Rationalise suppliers -> Preferred• “Design in to NPD”
Supply Chain-Procurement
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Group Procurement
Manager
Europe
Sites
Utilities
Indirect
NA
Sites
Utilities
Indirect
Asia GCL’s
GCL Chemicals
GCL Substrates
GCL Outsourced Products
Demand Planning
Organisation
� Phil Spibey (ex SSL International plc, ICI plc) joined as Head of Global Supply Chain - May 2011. Heading up Supply Chain function and driving through opportunities
� Graham Lanty joined as Global Category Procurement Manager – Chemicals –September 2011. (ex Rentokil, Danone and Novartis)
� Recruitment for permanent Global Category Procurement Manager – Substrates underway (interim currently in place)
� New resources also in place – ROR, VAL & REN
� Global Demand Planning Manager, Craig Fletcher (ex SSL, Reckitt Benckiser) in place Sept
Procurement Organisation
World Class Tape SolutionsMore detailed drill down on 3 major spend categories
Procurement Spend
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LDPE: ~GBP3.9m annual spendSites: Ashton, Renfrew
Key activities: - Implemented cost model pricing.- Tabled a 7% price decrease Sept ‘11 – awaiting response from 2 key vendors.
Cotton: ~GBP1.3m annual spend
Sites: Ashton, Renfrew, Valence
Key activities: - BKS Mills, India Cotton. 14-20% price negotiation wefJune ‘11. - Consolidation of REN & VAL spend via BKS. Anticipate circa £150k savings this FY. However prices TOO low creating supply stop
Paper: ~GBP4.2m annual spendSites: Mainly Windsor, Rorschach, Dunstable
Key Activities:- Key driver of liner prices- Cost Pricing models in place- Fighting price increases
Nylon: ~GBP2.3m annual spendSites: Ashton, Windsor
Key activities:- Establish cost model pricing to understanding drivers of Nylon 66 products- Aggressively fight off proposed cost increase- Q3 look for alternatives for current sources
Category Spend
World Class Tape Solutions
3 0
5 5
8 0
10 5
13 0
15 5
18 0
20 5
23 0
25 5
28 0
30 5
33 0
35 5
38 0
40 5
43 0
45 5
48 0
50 5
53 0
55 5
58 0
60 5
63 0
65 5
05/01/2009
05/02/2009
05/03/2009
05/04/2009
05/05/2009
05/06/2009
05/07/2009
05/08/2009
05/09/2009
05/10/2009
05/11/2009
05/12/2009
05/01/2010
05/02/2010
05/03/2010
05/04/2010
05/05/2010
05/06/2010
05/07/2010
05/08/2010
05/09/2010
05/10/2010
05/11/2010
05/12/2010
05/01/2011
05/02/2011
05/03/2011
05/04/2011
05/05/2011
05/06/2011
05/07/2011
05/08/2011
05/09/2011
SICOM RSS3 US Cents/kg SICOM TSR 20 Nymex Crude Oil US$/barrel TOCOM
Rubber ~GBP5.5m pa
• Natural Rubber . ~GBP2.6m pa• Sites: Ashton, Renfrew, Valence, Rorschach,Ghislarengo• Synthetic Rubber. ~GBP3.0m pa• Sites: All
• Synthetic, Affected by chemicals pricing structure. Cost increases driven from upstream manufacturers.• Natural Rubber. Except 1 PO, all purchases for this fiscal > FY12 standard cost. Anticipate Ashton’s Dec YTD
PPV to be ~GBP45k adverse.• Long lead times as Far East source leading to ‘delay’ from PO to PPV impact, currently procuring Q4 requirements• Pale Crepe NR. Consolidation of spend from ROR+VAL+GHIS. Validation of alternative vendors underway. Circa
8% saving pa GBP20k plus release of safety stock. Expected implementation Oct 11
Category Spend
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Data
• Next steps to improve transparency of PPV reporting
– inclusion of Freight, Duty, Customs charges into PO/Item code PPV analysis
– expand current PPV material families and therefore reporting to more relevant families ie Cloths – split into Cotton, Polyester, Nylons, Other cloths
– preparation and communication of Site Spend Maps – showing spend by materials Group/commodities
Functional Effectiveness
• Global Procurement Reporting • standard format focusing on Costs (PPV
detailed reporting and understanding, plus cost avoidance activities)
• quality (reporting and management of supplier complaints)
• supplier service • inventory and creditors• Implemented ‘Pilot’ report June 2011.
• Indirect Costs• elevated Procurement to be
gatekeepers of indirect costs• procurement network have identified
and are driving out costs across sites/regions
Phase 2 – Next Steps
Working Capital
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Raw 17.9 days
FGS 18.4 days
WIP 11.4 days
Raw 13.1 days
FGS 14.8 days
WIP 11.1 days
Status� Rebalancing FGS to support
On Time Delivery� Critical Materials� Liquidating FGS� Order sizes/MOQ’s
Focus• FGS A/B/C Structure• Drive back through external
Supply Chain� Warehouse consolidation
Apr-Jun 2009 July 2011
Status
� Leadership in place (ex Centrica plc, United Utilities plc, ABP plc, Textron Inc)
� Drive Safety Opportunities “Find It, Fix It”
� Baseline audit of key sites complete
� Integrated Risk Management System roll out to track issues/actions
Focus
� Regular Site EHS Audits
� Process safety of solvent/flammable based facilities
� Extend deployment of Intranet based IRMS
• Develop Group Policies & Standards
• Communications
• Competence & Training
• Targeted capex to deal with legacy issues
• Prioritised Risk based approach to future capex
Health & Safety
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World Class Tape Solutions
Per
form
ance
2011
IRMS/Sharepoint• EHS team uses IRMS
• IRMS compliments reporting
• All mgmt actions targeted yrly
• Facility layer of risks visible on SP
2012 2013+
SimplificationStandardisationSystemisation
DSEAR/Fire ATEX
Lifting & Handling
Chemical Handling
DSEAR/Fire/ATEX• DSEAR/ATEX risks ID’d
• RA carried out & risks controlled
• Static & earth bonding stds
• Site e’ees aware of risks
Lifting & Handling• All lifting activities identified
• Full lifting assessment done
• Minimal lifting carried out SFAIRP
• E’ees trained in safe lifting tech
Chemical Handling• Full chemical identification at sites
• Do I need it? What for?
• Have I got the full assessment for it
• Is it stored and handled as per
MSDS
IRMS/Sharepoint• Managers use IRMS• Facility layer of risks visible on
SP• Layered risks support yrly plan• HML influences capex decns
DSEAR/Fire/ATEX• DSEAR/ATEX risks amber• Scapa std for DSEAR/ATEX • HML areas mapped on SS• Capital reflects risk profile needs
Chemical Handling• 100% of chems ID’d • Risks assessed and recorded• HML areas mapped on SS• Minimal amount stored any 1 time
IRMS/Sharepoint• Supervisors use IRMS
• Risks visibly controlled on SP
• Yearly plan demands Risk input
• E’ees report all SO’s on IRMS
• All actions closed out in time
period
DSEAR/Fire/ATEX• DSEAR/ATEX risks – green
• Scapa std fully adopted in place
• Solvent replacements evaluated
• Full solvent ext audit
Chemical Handling• Safer chems ID’d and assessed
• 100% RA’s completed
• REACH updated
• Bunding 110% of chemical
Machine Guarding
Machine Guarding• All sites carry out MG survey
• All sites plan MG works
• All sites progress MG works
• Verified by SPG/IM visits
Lifting & Handling• Yearly plan includes MH
• 95% of lifting activities controlled
• HML areas mapped on SS
• Capital reflects risk profile needs
Machine Guarding• 75% of MG risks controlled
• HML risk areas mapped on SS
• Capital reflects risk profile needs
• Verified by risk mapping
Lifting & Handling• L&H risks green
• 90% of L&H automated out
• Insurance rebate on L&H risk
• No e’ees have ergonomic issues
Machine Guarding• 95% of MG risks controlled
• MG std for Scapa adopted
• Ear & eye protection not needed
• Verified via full site audit/review
EHS Roadmap
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NA-4
WindsorSyracuseCarlstadtInglewood Renfrew
EU-8
AshtonDunstable (3)Valence (2)GhislarengoRorschach
BarcelonaMannheim
Asia-4
Korea
ShanghaiShenzhenMalaysia
Current Actions�Carlstadt - remediation �Barcelona – complete�Bellegarde – remediation� Mannheim – end Dec
Operational Footprint
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Enablers• Lean/Cost Out
• Waste reduction• Set up reduction• Material substitutions• Process capability/repeatability
• Quality• Robust process design• Supplier quality• Process capability/repeatability• Business Process Mapping
• Procurement• Global structure• Supplier management• Regional indirect spend consolidation• LCC sourcing
• Environment, Health & Safety• Formal audit programme• Incident management• Audit tracking• Inspection routines• Risk reductions
• Employee Engagement• Aligned Goals & Objectives• Performance management• Communications
Service
CostQuality
Implementing The Basics• Service and Quality improvements• Cost Out and execution rigour• Capacity management• Consolidate satellite sites• Supply Chain infrastructure• EHS Infrastructure
Operational Effectiveness-Summary
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Questions