Case Studies - Quality - Birmingham Plating Ltd

Strategic Analysis of the Business Operation Identifying Preferred Supplier Requirements and Opportunities for Improved Competitiveness.

Establish demands on 'OEM preferred suppliers'
Measure current performance against these standards
Identification of the gap
Development of strategy to bridge the gap

Continuous improvement and a relentless search for better practices are hallmarks of world class competitiveness. Maintaining the discipline to continuously examine different aspects of the business to optimise efficiency, is particularly difficult in SMEs where management resources are at a premium. This project description outlines a diagnostic approach to strategic change management.

The Accelerate programme provided funding for Birmingham Plating Ltd to undertake a focused business review. This review centred on identifying minimum performance demands made of preferred suppliers to automotive OEMs. The project concerned the development of strategic automotive markets.

The project defined the business destination, where it was starting from and the road to reach the final destination. A change management plan and budget were identified to overcome the entry barriers to new target markets.

Birmingham Plating Ltd. are a family owned, sub-contract, electroplating organisation based in the West Midlands. The company has a diverse portfolio of customers including a significant minority in automotive markets. The company has relocated to impressive new premises and continued to grow steadily under the guidance of managing director Avtar Gakhal. Mr Gakhal wanted to examine quality and service levels that enabled opportunities for new business to be explored.

Companies operating in automotive supply chains are subject to continual customers pressures on both price and performance. Supply chain drivers are currently focused on the QS9000 approach to quality management. QS9000 represents best practice in business management today. These systems extend and develop management systems that meet with ISO9001/2 approval. In QS9000, a special focus is placed on technical, quality and customer service areas of business operation.

Main project objectives

To gain a greater understanding of Automotive OEM requirements for preferred supplier status.
To identify the work necessary to change the company to meet these requirements.
To diagnostic quality, technical issues and best practice in respect of automotive OEM standards.

Finance and implementation

£1200 towards direct diagnostic costs of £2,500 was granted through the Accelerate programme. A partnership was created, to deliver the project, with the consulting group Pro Enviro. The consulting group Pro Enviro, provided Birmingham Plating with an extended management team. The management and project team created in partnership with Birmingham Plating worked effectively together to execute both, the project and administration successfully.

The review covered a range of general business issues as follows:

ISO 9002 system
Planning
Financial Monitoring & Control
Customer analysis
Training & Education
Research & Development
Information Technology
Risk Management

Outcome

The project enabled the Birmingham Plating to evaluate their business process and systems, providing a baseline to measure future improvements. Strengths and weaknesses were identified with corrective action plans as appropriate to the business objectives.

Operational control, and laboratory & technical services were identified as main weaknesses and recommendations for improvements were made. A synopsis of the gaps between the companies ISO9002 quality system and QS 9000 was produced.

Birmingham Plating intend to gain necessary accreditation to work directly for the automotive OEMs in future. Resource has been identified within their current operation to meet the plan. The company also has plans to develop modern plating lines and increase manufacturing capacity.

Birmingham Plating are committed to growth and continuous improvement. Accelerate provided the access and expertise to allow this busy surface engineering company to examine its strategic objectives.