the road to success – the motorsport way · 8000 parts booked to stores per week 295 employees...

© Copyright. Not to be reproduced without the permission of Xtrac Ltd

The Road to Success – The Motorsport Way

April 2016

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Introduction

� Operational management at Xtrac

� The project approach

� The role of procurement

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Who is she?

� Ann McKenzie-Ayling BEng

� Technical Buyer

� 3 ½ years service at Xtrac

� Technical purchaser at McLaren F1

� Studying for MCIPS registration

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Who am I?

� Martin Halley

� Operations Director FIMechE

� 25 years service at Xtrac

� Gear Design

� Head of Advanced Engineering

� Chief Engineer

� HM Forces

� We get the occasional fire fight at Xtrac!

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Introduction

� Motorsport is a business, run by professionals

for professionals

� Xtrac is a business…..

� It just happens to be fun, most of the time.

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Some facts and figures

� £43M turnover

� 2000 Jobs or 80 000 parts in WIP with 2000 to

8000 parts booked to stores per week

� 295 employees including 70 grad engineers

� 3 locations – global presence 24/7

� Consume 250 tonnes of specialist steel p/a

� 140 main machine tool centres

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Xtrac is the World’s leading manufacturer of motor

racing and specialist transmission solutions:

Introduction

Motor Racing.� Complete transmissions (2WD & 4WD).� Assemblies (differentials, driveshafts� Assisted Gearchange Systems (AGS).� Oil pumps & clutch release.� Engine and gearbox components (gears, shafts & gear

selection).� Consultancy (design / production / service & support).

Automotive and Engineering.� Complete transmissions.

285 people supplying the world’s leading Motorsport markets:

- UK, Europe, USA, Japan, South America, China and Asia.

- F1, IndyCar, Le Mans, Sportscar, GT, WRC and Touring Cars.

CONFIDENTIAL

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Xtrac Sectors

� Exports comprise over two thirds of

sales, including Europe, USA, Japan,

South America, China & Russia.

CONFIDENTIAL

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Xtrac grew from an opportunity

Group B

Banned at the

end of 1986

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Brief History

1984

Rallycross, Dakar

Group S

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Brief History

Late 1980s

Group A RallyingMazdaMazdaMazdaMazda ToyotaToyotaToyotaToyota

MitsubishiMitsubishiMitsubishiMitsubishi

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Brief History

Late 1980s & early

1990s

F1, Sportscar,

IndyCar and Touring

Car

March March March March ---- 1990199019901990

Penske Penske Penske Penske ---- 1990199019901990

Ford Ford Ford Ford ---- 1993199319931993

McLaren McLaren McLaren McLaren ---- 1989198919891989

Onyx Onyx Onyx Onyx ---- 1989198919891989

Peugeot Peugeot Peugeot Peugeot ---- 1993199319931993

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1984 Wokingham1984 Wokingham1984 Wokingham1984 Wokingham 1987 Wokingham1987 Wokingham1987 Wokingham1987 Wokingham

The Xtrac Story

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2000 Thatcham2000 Thatcham2000 Thatcham2000 Thatcham

The Xtrac Story

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2003 Indianapolis2003 Indianapolis2003 Indianapolis2003 Indianapolis

2010 Mooresville2010 Mooresville2010 Mooresville2010 Mooresville

The Xtrac Story

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532 Rally386

Grand-Am626

Sportscar1059

Sportscar

1046 Touring Car

1011 IndyCar

427 Touring & Sportscar

Products

426 Touring & Sportscar

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Why does a racing car need a gearbox?

� In racing cars it is essential to run an engine at the maximum tractive effort.

� Correct direction of drive and number of wheels!

� Metallic gears are still the most ‘power dense’ solution

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Speed Transform

� Transmission links motor(s) to the wheels

� Transfers torque

� Transforms torque and speed

� Racing engines� Narrow power and torque band

� High rpm

� Can’t link directly to the wheels

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Vehicle consideration.

� The concept of engine installation to drive output is usually predetermined by ruling. In simple system terms, a vehicle can have either a:

� Front Engine

� Mid Engine

� Rear Engine

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2WD – Transverse

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2WD – Longitudinal

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2WD – ‘Transaxle’

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AWD – Transverse

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Operations

� The management of producing parts and directing services, responsible for the efficiency and the effectiveness of converting inputs (materials, labour and energy) into outputs (transmissions, parts and services).

� Xtrac’s operations include manufacturing, build, facilities, equipment, production control, systems (Epicor), analysis of productivity and costs, and materials planning.

� Metrics are Margin (broadly costs), Quality (specification and compliance), Time (productive lead time), Flexibility (staff and machinery), Stock (turnover) and Safety.

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Ops Org Chart

Martin Halley

Operations Director

Martyn Silby

Head of

Manufacturing

Simon Quirk

Facilities

Manager

Senior MPMSteven Michael

Purchasing

Manager

MPM’s

Dept Managers

x8

Manufacturing Maintenance

Adrian Banbury

Manufacturing

Manager

Process Engineers

Cleaners

x3

Purchasing

Drivers

Facilities

MP&L

(Materials Planning &

Logistics)

Manufacture

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Operations

• Skill

• Performance

• Capability

• Planning tools

• Project tools (X-PDS)

• Plant & Machinery

• Facility

• Capex

•Raw Material

•Stores

•Supplier &

Production

Control

Materials Assets

PeopleSystems

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Materials

Four Square Rig Testing - XM031 vs XM023

1000

1500

2000

2500

10,000 100,000 1,000,000 10,000,000

Cycles

Roo

t S

tre

ss

, M

Pa

XM031

XM023

� Materials and processes development programme in conjunction with Tata Specialist Steel:� Test rig evaluations.

� Component testing.

� Extensive stocks at all times.

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� Validation testing: Component rigs, sub system rigs, complete system rigs.

� Tightly defined duty cycle – continual review of actual operational data.

Validation

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Assets

Core in-house capability & technology:� Turning – CNC.� Milling – CNC.� Gear Cutting.� Heat Treatment.� Grinding.� Wire and spark eroding.� Shot peening.� Xtrem & Xtec super-finishing.� Fettling & finishing.� Build.

Long term established supply chain:� Casting pattern manufacture.� Foundries.� Close liaison & involvement

and shared vision with all suppliers.

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Assets

� Very latest computerised machining.

� Fast, efficient & offering cost and lead time reductions.

� >£3M invested in 2014.

Gear GrindingGear GrindingGear GrindingGear GrindingBevel GrindingBevel GrindingBevel GrindingBevel Grinding

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People

� Xtrac is 100% owned by Managers and Employees.

� Staff communications include:� Factory Meetings, Newsletter &

Team Brief to share:� Strategy, goals, targets / KPIs� Share price performance.

� Investment in people:� 145 Skilled Machinists.� 70 Engineers.� 30 Sales / Admin.� 25 Inspectors and Quality.� 15 Support staff in the USA.

� Award winning apprentice & undergraduate programmes:

� With Newbury College & Oxford Brookes University.

� Qualifications include ONC, HND, BEng/MEng & PhD.

� 4 Undergraduates every year.� 4 - 5 Apprentices every year (over 100

applicants).

� Individual development programme for each staff member:

� In-House training (including commercial awareness).

� External training.

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� ISO 9001:2008 Registered company (UK & USA).� Intranet Based QMS.� Process Maps.

� Work Instructions.� Standards.� Process guides.� Customer documentation.

� Products qualified throughout the manufacturing process� Full material traceability through manufacturing

process.� Fixed manufacturing routes.� Operation set-up sheets.� Stage drawings for high risk parts.� Non destructive testing and certification.� Visual Acceptance Criteria.

Systems - QA

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Process - Manufacture

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Systems - Projects approach

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ID Task Name Start Finish

1 PROJECT MANAGEMENT Fri 24/10/14 Fri 31/07/1512

13 PRE PROJECT Mon 10/03/14 Mon 22/09/1416

17 DESIGN & ENGINEERING Mon 22/09/14 Tue 14/04/1518 Receipt of Customer Information Mon 22/09/14 Mon 22/09/1419 Scheming Tue 23/09/14 Fri 07/11/1422 Modeling Tue 21/10/14 Fri 13/02/1523 Internals Tue 21/10/14 Fri 13/02/1524 Hydraulic Actuator Mon 10/11/14 Wed 24/12/1425 Initial BoM Mon 09/02/15 Tue 10/02/1526 Conf irm carry over parts Mon 09/02/15 Mon 09/02/1527 Create 1st Build BoM Tue 10/02/15 Tue 10/02/1528 Analysis Tue 23/09/14 Fri 13/02/1529 Ratios & Speed Charts Tue 23/09/14 Mon 20/10/1430 Bevel Design Tue 04/11/14 Fri 14/11/1431 Internals FEA Tue 28/10/14 Fri 13/02/1532 Loaded Tooth Contact Anlysis Tue 11/11/14 Wed 26/11/1433 Gear Ratings Tue 04/11/14 Wed 12/11/1434 Bearing Ratings Tue 04/11/14 Mon 10/11/1435 Detailing Thu 25/12/14 Fri 20/03/1536 Internals Detailing Fri 30/01/15 Fri 20/03/1537 Hydraulic Actuator Thu 25/12/14 Tue 27/01/1538 Conf irm proprietry parts Fri 30/01/15 Fri 30/01/1539 Production Engineering Wed 28/01/15 Tue 24/03/1540 Internals(Tooling & Method) Tue 03/02/15 Tue 24/03/1541 Hydraulic Actuator (Tooling & Method) Wed 28/01/15 Fri 30/01/1542 Internals Release Tue 10/02/15 Tue 24/03/1543 Release Proprietry Parts Fri 30/01/15 Mon 02/02/1544 Additional Draw ings Fri 20/03/15 Tue 14/04/1545 Assembly Draw ings Fri 20/03/15 Tue 14/04/1546 Assembly Tooling Fri 20/03/15 Tue 31/03/1547 R&D Build Test Tooling Fri 20/03/15 Fri 27/03/1548 BoM Release Tue 14/04/15 Tue 14/04/1549

50 OPERATIONS Mon 02/02/15 Wed 10/06/1551 Procurement Mon 02/02/15 Wed 27/05/1552 Long Lead items Mon 02/02/15 Wed 27/05/15

22/09

30/01

14/04

18 25 01 08 15 22 29 06 13 20 27 03 10 17 24 01 08 15 22 29 05 12 19 26 02 09 16 23 02 09 16 23 30 06 13 20 27 04 11 18 25 01 08 15 22 29

Sep '14 Oct '14 Nov '14 Dec '14 Jan '15 Feb '15 Mar '15 Apr '15 May '15 Jun '15 Jul '15

2015� Xtrac’s business is built on it’s projects, we undertake 30 to 40 new projects each year

� Success is measured on Quality, Delivery, and Cost

� Project ‘Core Team Member’ are identified to manage each project

� Xtrac employs a traditional ‘phase and gateway’ approach to managing projects;

� X-PDS – Xtrac Product Delivery System

� Each project has it’s own documents;

� Risk & Issues Log – for ‘day to day’ running of he project

� Task lists that need to be completed prior to each project gateway

� Agreed Timing Plan

� Project Specification

� Project Team Members have formal ‘Prince2’ training, a recognised qualification in Project Management

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� Scope of work� Technical specification

� What we have committed to deliver

� Project planning� Agreed Project Timing

� Concept to 1st build: 6 months

� Engineering: 4 months

� Manufacture: 3 months (overlap)

� Agreed project quality� Design review

� Project review

� Verification – Design Analysis

� Validation – Testing

� Budget control� Control of resources and time

� Management of expenditure

� Manufacturing planning

Projects - Approach

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Mission Statement

� “To provide high quality goods and services, on time, in full

and within budget”

� Our core focus for the business is to keep “product” flowing

through the manufacturing process at every point that we touch

it

� We source anything that Xtrac requires to fulfil customer

orders that our own manufacturing processes are not capable

of achieving – either due to capacity or capability

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Supply chain management

� Five procurement specialists, covering five strategic areas of

spend:

1. Subcontract machining work including subcontract

finishing processes

2. Castings

3. Raw materials

4. Proprietary parts

5. Specialist work

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Supplier selection

� Highly knowledgeable in their

industry – especially if this is not a

core Xtrac speciality

� Highly knowledgeable of our industry

– they understand the challenges and

pressures associated with the fast pace

of work

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Vendor Rating Criteria

Quality

Calculation: Number of parts delivered divided

by number of parts rejected (DMR’d)

Weighting: Scrap - 100% counted

Rework - 70% counted

Concessed - 30% counted

Targets: A: 95-100

B: 85-95

C: 60-85

D: <60

Delivery

Calculation: Compare ‘Receipt Date’ against

‘Due Date’ and take the average score for the

period

Weighting:15d early to 1d late - Score 100%

>15d early - Score 70%

2-3d late - Score 70%

>4d late - Score 0%

Targets: A: 90-100

B: 75-90

C: 60-75

D: <60

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Vendor Rating Outcome

� Overall

Calculation: Combined Total Quality

score and Total Delivery score

Weighting: Quality- 70%

Delivery- 30%

Targets: A: 90-100

B: 80-90

C: 60-80

D: <60

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The challenges we face….

� Project lead times and overall duration

� Volume of parts that we are required to source

� Seasonal fluctuations – build season, race season and “off” season

� And what happens when this occurs…..

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How we add value…..

� Strong supplier relationships built on honesty, trust and

integrity

� Flexibility and adaptability in the face of changing

demands

� Maximising existing technologies in new and innovative

ways

� Exploring new technologies to expand and improve our

product range

� Developing the supplier base to make them the best they

can be

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tdKeeping manufacturing alive

in the UK

� Strong motorsport heritage in the

UK

� Proud of our own modest

beginnings

� Keen to keep manufacturing alive

in the UK through both our own

facility and the majority of our

supplier base

� Strong emphasis on the use of

SMEs

� Approx. 85% of our suppliers are

based in the UK

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� World leaders in Motorsport.

� Strong reputation in Automotive and Engineering.

� ISO 9001:2008 Quality registered (UK & USA).

� A history of successful projects inside and outside of Motorsport.

� Rapid response with advanced engineering design and analysis.

� Bespoke materials.

� Flexible high technology manufacturing capability.

� High level of technical & project support.

� Enthusiastic staff who are the 100% shareholders of Xtrac.

� World class British company with world class innovative design solutions to all our customers around the world.

� >70% exported – over $650M since Xtrac started in 1984.

First Part done!

the road to success – the motorsport way · 8000 parts booked to stores per week 295 employees...

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