PRESS RELEASE: 16 September 2009

NORTH EAST MANUFACTURERS SAVE MILLIONS WITH EXPERT HELP

North East firms have saved almost £30 million in the past year by accessing a trailblazing productivity programme that helps manufacturers share knowledge and improve productivity.

Regional Business Minister Rosie Winterton visited Rocket Medical - a forward-thinking medical devices manufacturer in Washington - to learn how they had taken on board advice from experts at the Manufacturing Advisory Service North East (MAS NE) to help their successful business grow even more quickly.

Since its establishment a year ago by Government and One North East, the new MAS NE service - which is a combination of the Manufacturing Advisory Service and One North East’s pioneering North East Productivity Alliance - has registered impressive results, working with firms across the region providing practical advice and guidance to boost productivity and generate efficiency savings.

MAS NE’s first annual results reveal:

• 543 firms supported across the North East
• £21.1m in productivity savings to businesses, including working capital reductions and energy procurement savings
• Energy usage reduction savings totalling £6.8m - The CO2 equivalent saving of 39,000 tonnes per year

Rosie Winterton Minister for Regional Economic Development and Co-ordination said: “Rocket Medical is a great example of a ground breaking company taking advantage of the Manufactory Advisory Service and leading the way in product innovation and design.

“Manufacturing is one of the great unsung heroes of our economy and I am pleased to see that so many companies in the North East are benefiting from the advice and support that the Manufactory Advisory Service provides.”

The minister visited Rocket Medical with One North East and MAS NE officials to learn more about how the firm has adopted the latest lean manufacturing advice.

Rocket Medical employs 106 staff at Washington which is the manufacturing arm of the family owned business founded in 1964, with its head office in Watford.

Its product range comprises cardiothoracic, infertility treatment, radiology, drainage and surgical instruments, with a predominantly UK-based marketplace, but also exporting to more than 80 countries including the USA and Australia.

The company took advantage of a funded training programme for its staff after approaching MAS NE. More than 60% of its Washington staff have gained NVQ Level 2 or above qualifications in Business Improvement Techniques and the Institute of Leadership and Management Levels 2 to 4.

The better skilled workforce has saved the company £100,000 throughout its Washington business in the first year of working with MAS NE.

Les Todd, Rocket Medical Operations Director, said: “Business is about people and this funded training programme which allowed staff to increase their knowledge and understanding of Lean, was too good an opportunity to miss. It has allowed us to further empower employees to take informed decisions for the good of the business.”

MAS NE, which is based at Sunderland’s Doxford International Business Park, employs 22 manufacturing specialists who carry out diagnostics in companies, working with all levels of staff to identify business improvement opportunities. Using their own skills and expert delivery partners, they implement sustainable business improvements through staff training and engagement and the application of modern manufacturing techniques.

Their cutting edge work has taken on even greater importance during the recession. Paul Dobson, MAS NE Programme Manager, said: “It is very satisfying to see the results of the MAS NE specialists’ work not only adopted by Rocket Medical but driven further into the organisation after our initial involvement. The solutions for increasing production levels without increasing costs are equally applicable to organisations that need to become more effective with less resource, as they seek to weather the current economic storm and look towards recovery in the future.”

MAS NE is currently working with 60 firms, many running more than one project within their company. On average, MAS NE interventions in businesses result in 25% productivity improvements, 26% on time delivery improvements and increased stock turnover of 33%.

One North East and the European Regional Development Fund 2007-2013 (ERDF) has invested £32m into the MAS NE project until 2013 to assist the manufacturing sector which is vital to the future well-being of the regional economy.

And a further £1.5m has just been pumped into MAS NE by the regional development agency and through the ERDF, to extend its reach into waste reduction and tap into the benefits of renewable energy usage for firms.

Alan Clarke, One North East Chief Executive, said: “Rocket Medical is a prime example of a progressive company taking maximum advantage of the opportunities MAS NE presents to manufacturers. “Rocket Medical, like MAS NE, continues to go from strength to strength and the regional economy is ultimately profiting from the intervention of these experts across our important manufacturing sector.”

MAS NE is operated by PA Consulting Group who won the tender to run the expanded service in 2008 following a public tendering process and is part of the Government’s Solutions for Business portfolio, offering publicly-funded support products to help companies start, grow and succeed.

 Text Copyright© ONE North East 2009