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Supporting Manufacturing Skills in Gloucestershire. Tuesday 24 April, 2012. Moog’s Growth Problem. What is driving growth in servovalves? Medium sized jets are selling well in S.E. Asia (A320/737; 32 – 44 per month). Large backlogs.
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Supporting Manufacturing Skills in Gloucestershire Tuesday 24 April, 2012
Moog’s Growth Problem • What is driving growth in servovalves? • Medium sized jets are selling well in S.E. Asia (A320/737; 32 – 44 per month). Large backlogs. • Barriers to entry for competitors; once you are on a programme, it is difficult for you to be dislodged.
Moog’s Growth Problem • What is the Company’s problem? • Inability to create timely additional internal capacity • Lack of suitable external suppliers with capacity • Restricted capital and expertise to automate quickly • Fixed prices which gives little leeway for increased salaries, etc. • Improved productivity is the only way to allow increased salaries
What has Moog done to increase capacity? • Assembly & Test • Recruited a number of ex apprentices or equivalents • Not too many problems getting those people on site • Automated test rigs to improve productivity • Rate is very slow due to resource • Applied flow line techniques (Lean), two bin, kanban, etc. • Work lots of overtime
What has Moog done to increase capacity? • Machine Shop • Recruited a number of skilled people to work shifts; very few have stayed • Tried to run CNC machine tools unmanned • Production Engineering skills have been lacking • Trying to recruit Production Engineers • Tried to offload initial roughing operations to sub-contract • Limited success as most suppliers are full with no spare capacity for three months • Work lots of overtime
The Issues • Very small pool of skilled machinists • Wage rates are rising due to insufficient supply • No need to take a job which works unsociable shifts • Skills of new employees is not what it used to be • Longer in-house training periods • More quality audits • More inspection • Lots of scrap in the Machine Shops • Not enough apprentices coming through the system
How has Gloucestershire LEP AE&M helped itself? • Attempted to estimate the future demand in our Sector • 2012 – 2014; 2015 – 2020 • Will work with HE/FE to match demand • Create apprenticeship flyers for companies in our Sector • Started to work with schools to change the perception of AE&M • Trying to get funding for STEMworks in schools • Trying to get funding for internships and supply chains • Planning a video to promote our Sector
Moog’s partnership with Tewkesbury School • Created and monitored project work for years 12 and 13 for the last seven years • Recently educated four teachers in the main skills required for AE&M business • Design, Manufacturing Engineers, Operations, Purchasing, Logistics, Quality, Finance, Contracts/Legal, IT, HR • Activity funded by GFirst • Plan to take in thirteen students next term to get a general understanding of the above skills plus specific skills which will allow them to set up a business • The plan next year is to run a business making parts for Moog