cooperation with s.m.e.s in recent years david mackay research fellow

© 2008, Strathclyde Institute for Operations Management

Cooperation with S.M.E.s in recent years

David MackayResearch Fellow

Strathclyde Institute for Operations ManagementUniversity of Strathclyde, Glasgow, UK


PurposeTo share experiences of University/Industry collaboration

with a focus on the SME community

Objectives• Describe the context of interactions

• Discuss the mechanisms applied

• Share the key learnings


• University of Strathclyde founded in 1796 as the Anderson’s University. Today it is the 3rd largest University in Scotland

• Strathclyde Institute for Operations Management (SIOM) founded in January 2007 to bring together world leading expertise in operations management

• SIOM brings together about 25 academics and 20 research staff across the Engineering and Business Schools of the University

• Strathclyde Business School in the top 30 business schools world wide

• One of the leading Engineering Faculties in the UK with the highest ratings in teaching quality and research

Strathclyde Institute for Operations ManagementBackground


Who am I?

• Dave Mackay M.Eng Dipl. Man• Research Fellow, Strathclyde Institute

for Operations Management• 6 Years – large manufacturing organisations• 15 months - high growth SME • 2 years University to SME knowledge transfer • 3 years part time PhD student and researcher in

Management Processes and Competitive Advantage


3 important things about me…

My son JackMy wife JenMy team – Glasgow Rangers

Now you know more about me, you should feel comfortable asking questions about my presentation….


The Future for SMEs?


Design Make Serve

Val

ue

Val

ue

Val

ue

Scottish Industry is Changing Shape

Creativity FUTURE KEY PROCESSES PersonalisationDesign Customisation

Development Service


A vision for manufacturing in Europe

• Few large companies many SMEs

• High value innovative enterprises

• Primary competitive basis other than cost

• Competing globally… not locally

• Healthy margins

• With progressive and enlightened management teams

• Flexible and agile… continuously scanning the environment for opportunities and threats

• Collaborating internationally with like companies with complimentary competencies develop and deliver innovative products, services and processes

Co

mp

an

y s

ize

No of Companies


How we help

Mechanisms for engagement


University Industry Collaboration“The existence of technological opportunities can be quite firm specific and the recognition of such opportunities is affected by the organisational structures that link institutions, primarily universities, to the business enterprise”

Teece, Pisano and Shuen, 1997

•Scottish SMEs don’t tend to go to their local University in search of solutions to their problems….only 1.1% of small businesses go to Universities or colleges for advice (Source: FSB biannual member survey, 2006)•Why?

– Lack of awareness– Bad perceptions of University– Firefighting – lack of external contact

•This creates a competitive opportunity for those organisations that do engage•The challenge for the University is to offer a range of engagement mechanisms which remove barriers for co-operation


Engagement Mechanisms (1)

• Events– One off information sharing– Industry speakers– Networking/collaborative meetings– Host special interest groups

• Consultancy– Bespoke advice– Technical as well as knowledge based

• Company Specific Training– Focused modules

– e.g. six sigma yellow belt training– Project management workshops


Example - Digital Design Suite

- Physical Rapid Prototyping Facility- Reverse Engineering Capability- Virtual Prototyping Facility

DMEM (part of SIOM) hosts the only integrated physical, virtual and reverse engineering prototyping facility in the UK. Used to improve all aspects of the design and innovation process and experience.

Students are educated in leading edge techniques which enhance and improve the product creation process



• Student Placements and Projects– Final and penultimate year group and individual projects with industry

– Company accesses capable minds and university facilities free

– Practical training raises the capabilities of students

• University led research– University engages in “case study” research– Zero cost for participation– Share in results

• Training Courses– Develop whole company programmes around specific needs

• E.g. Change leaders programme


• Deal with uncertainty

• Learn & Adapt the business

• Create order (planning and control)

• Orchestrate business

“Manage Processes” are the business processes which:-

University Led Research Example

A piece of SIOM research attempted to better understand how these worked in both SMEs and Large organisations.

This required conducting 40 case studies in 8 different countries


Who does the research?• Researchers and academics from SIOM or partner University representatives

What do we need from companies?• A resource to co-ordinate visits and information collection (approx. 4 hours)

• Access to each of the management team individually (approx.1.5 hours each)

• (optional) Access to a group of technical level workers (approx 0.5 hours total)

What does the company get in return?• Confidentiality assured – both on an individual and collective basis

• Free consultancy – a report based on the interviews collating the “MANAGE” processes in the organisation with the current version of the model

• Access to the final output of the research

The “Deal” with SMEs



• Collaborative Research– University and companies share risk and responsibility

– Very close long term working relationship

– Companies involved receive full benefits of research

• Embed Graduate – “KTP”– DTi sponsored scheme– Recent graduate employed by University for two years but works

full time in a company– Supervised by academic to embed research output

• Company Driven Research– Company approaches University with a research requirement– E.g. Advanced Forming Research Centre


FutureSME

• What is it? - A major collaborative project funded by the European Commission through the Framework Programme 7

• Objective – to develop future business models tools and techniques for European Manufacturing SMEs that would prepare them to compete globally in the 21st Century

• How? - Collaborative R&D… guided with SME end users

- Development of practical tools and techniques

- Demonstration… with SME end users

• Who? – 26 partners in total – 13 manufacturing SMEs, six R&D partners and seven intermediary organisations… from UK, Ireland, Poland, Czech Republic, Turkey, Slovenia, Italy, Sweden

• Budget? – €6m over four years

Strathclyde Institute for Operations ManagementCollaborative Research Project - Example


FutureSME… Architecture What are the future business

models?

How can these

companies tr

ansform

?What are the people

issues?Skills, Education, Attitudes

and Behaviours

How can we support these companies?

Government policy, support services, funding, etc.

Strathclyde Institute for Operations ManagementResearch Project - Example

How can we classify today’s SMEs?

e.g. Capacity to engage and change

In the next 4 years we want to build up on what we have done so far… and build a model that would transform the competitive basis of European SMEs!


Description SME 1 SME 2 SME 3

Events/Networking Yes Yes No

Consultancy No No Yes

Company Specific Training Yes No No

Student placement/ project Yes No Yes

University Led Research No Yes No

Training Courses No No Yes

Collaborative Research Yes No No

Embed Graduate – “KTP” No Yes No

Company Driven Research No No Yes

Unique Engagement Paths

We have learned from our interactions with SMEs that it is essential that companies can select the most appropriate mechanisms for engagement


Highland Spring• Highland Spring first engaged with SIOM

members over 10 years ago as a relatively small SME

• Since then, it has participated in all available mechanisms to co-operate with the University

• This co-operation delivered many results including:-

– a waste level reduction of 5%– Line speed increase of 43%– Line downtime reduced by 31%– Improved production outputs to meet sales turnover

increase of £11million and a three-year projected increase in profits of £1.65million to be achieved in only two years.

• Highland Spring Ltd is now the UK’s leading bottled water supplier. Through collaboration with SIOM led by Professor Umit Bititci, the company has transformed its operations delivering outstanding results and has now outgrown SME status

• The relationship between Highland Spring and SIOM continues to go from strength to strength.


Key Learnings

Reflections, Thoughts and Conclusions


Benefits for SMEs

• Can select a series of specific interactions to suit circumstances

• Minimum cost resource delivers results “Just In Time”

• A chance to “talent spot”


University Benefits

• Produce industry relevant research and transfer technology/knowledge into practice

• Educate students and graduates to meet the needs of employers

• Raise funds and generate future research opportunities


Key Learnings

• Share expectations up front• Build up relationship over time• Needs tolerance – “come and go”• Can deliver outstanding results and growth• Continuous dialogue required – start the

conversations early


Advice

• Develop a relationship that suits you but be proactive

• Engage as partners with the university

• Develop abilities before your competitors

• Systemise your approach – have process owners

• Work together – avoid fragmentation

• Value your capabilities!

SME University


Challenges for Co-operation?…C

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Co

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Ad

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Low Level of Excellence High

Today’s best practice=Operational Excellence Lean, 6-Sigma, Waste, eBiz,ERP, CRM, TPM, BSC, etc

Tomorrow's best practicesStrategic Excellence

InnovationLearning

NetworkingStrategic Response

Working together increases the chances of SMEs and Universities surviving and thriving.

Through co-operation, we will attempt to lead the development of tomorrow’s best practices.

Will you?


Thank you for your attention

Any Questions?

cooperation with s.m.e.s in recent years david mackay research fellow

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