In the bleak midwinter……

winter 006

In around 5 months time the people of the U.K will go to the polls to elect the Government for the next parliamentary term.

Over the last 13 years of Labour government manufacturing output has declined dramatically from around 20 % of GDP to around 11% today.

The Economy has become grossly inbalanced in favour of the Financial Services and Property sectors. This has proved disastrous and has contributed to the deepest recession we have seen in a lifetime.

To rebuild a robust economy we need a mixed economy in which manufacturing plays a major and significant part.

It’s easy to be cynical about Political parties but it’s interesting to visit the main parties websites to find out what their policies are towards the Economy and manufacturing in particular.

You may be surprised by what you find.

chris@projectsguru.co.uk

www.projectsguru.co.uk

Fancy a change ?……….

managingchange

If your Organization is embarking on a major change program the methods you adopt to bring about the change will determine the level of success achieved.

The change management process is well defined and comprises the following key stages:-

• Identify the key thing which needs changing – the change object.

• Identify the key reasons for change.

• Communicate the change.

• Force Field Analysis, identifying the forces for and against change.

• The change process.

• Freeze the change.

Chris@projectsguru.co.uk

www.projectsguru.co.uk

Effective Project Management

Effective Project Management.

What is a Project ?

A project may be large or small, simple or complex but all projects share three common attributes:-

• Specific Outcomes – the project is set up to deliver some specific results or outputs.

• Defined Start & End dates – The project starts and finishes on pre-defined dates.

• Budget – the project has a pre-defined budget which it should not exceed

What is the Project Management process.

There are a multitude of definitions of the project management process but all of them share the attributes shown below:-

PMprocess

The Role of the Project Manager.

The role of the project manager is a challenging one. Often he or she will be coordinating the activities of technical highly skilled people and liaising with internal and external parties all critical to project delivery. Project Management is a highly skilled professional role and the Project Manager will normally need several years experience in order to be successful.

The role involves the key tasks of planning, organizing and controlling. In complex projects planning project tasks often involves the use of software programs such as Microsoft Project which enables the Project Manager to schedule hundreds of tasks and manipulate their interdependencies in order to reduce the overall timescale of the project.

Organizing involves dealing with people within the immediate project team as well as third parties internal and external to the wider organization.

Controlling involves monitoring and measuring outputs and exerting influence to achieve the desired outcomes.

In order to be effective the Project Manager needs information, communication and commitment.

chris@projectsguru.co.uk

www.projectsguru.co.uk

Dubai gives the world the finger………….

Burj2Dubai has officially unveiled  “The Burj” –  now the worlds tallest building at 828m & visible from over 60 miles away !

It cost a staggering $1.5 Billion to construct over the last 5 years using thousands of migrant workers.

Indeed the building was originally to be called “Burj Dubai” but has now been named “Burj Khalifa” in honour of the ruler of Adu Dhabi who recently bailed out the troubled emirate to the tune of several billion dollars.

Many will see this building as a great feat of engineering, a wonder of the modern world, a tremendous edifice and monument to Capitalism, the latest and greatest in a long line of stupendous architectural magnificences.

Others may see it as the biggest ‘white elephant’ ever built, a monument to excess, an obscene symbol of wealth built by the labour of the poor (mainly Indian & Pakistani labourers paid a few dollars per day) slaves in all but name.

A fitting monument to the “Noughties” decade of excess which imploded in the Worlds greatest recession.

The greatest  example of construction built on sub-prime mortgage the world has ever see.

Dubais magnificent finger rising from the plains and screaming “Up Yours World !”

Whichever way you view it you certainly can’t ignore  it.

chris@projectsguru.co.uk

www.projectsguru.co.uk

Chinese elves make manufacturing cheaper…

father-christmas In a press statement released today at 21.oo GMT Father Christmas  announced that, from today onwards, all toys will be manufactured by Chinese elves due to the increasing costs of employing elves at the North Pole. This has been exacerbated due to the effects of global warming and the shrinking ice cap making Real estate in the Northern Latitudes increasingly expensive.

Santa denied that product quality would be effected stating that toys will continue to be designed by Northern elves. Only the manufacturing operation itself is being subcontracted to China.

No member of the Chinese Goverment was available for comment and Santa catagorically stated “…this has absolutely nothing to do with the recent Copenhagen event & ,despite rumours to the contrary, I was not a participant”

Sad for Saab…….

saab93 Recent news that GM has failed to find a buyer for Saab leading to the imminent demise of this once great automotive manufacturer will sadden those of us who once owned one of these iconic vehicles.

The Swedish manufacturer has a tremendous tradition of innovation. They were the leaders in Turbo development which was incorporated into a range of models in the 1960’s.

The Duck-Billed shape of the 9-3 and earlier 900 series made their looks distinctive and original.  The Saab cockpit reflected the brand’s Aero heritage with its wrap around style and distinctive dash. Saab cars had headlight wipers long before anyone else and everyone who has driven a 9-3 or a 900 came to love the ignition being next to the handbrake (rather than next to the steering wheel) meaning the car had to be left in reverse gear before the keys could be removed – proving an excellent mechanical theft deterrent.

Let’s hope someone comes in at the last moment to rescue this iconic and innovative automotive brand.

The Blame Game……

sugar It is common in Organizations to look for someone to blame when things go wrong. Some cultures are more prone to this behaviour than others but the temptaion to blame a member of the team when things go awry should be strongly resisted by the Project Manager.

Any individual criticism should be done on a face to face basis in private. The public apportioning of blame will greatly weaken Team morale and spirit and will often reflect back on the Project Manager.

Even if individual team members criticise the Project Manager this should be dealt with on a one to one basis avoiding public retaliation.

Successful Project Managers generate respect by treating Team Members as they would be treated themselves.

chris@projectsguru.co.uk

Shifting sands of Globalization…….

dubai The recent events in Dubai, where the state owned fund “Dubai World” announced it needed an additional 6 months to repay some of its outstanding debt, caused shockwaves around the World echoing the problems of Lehmans 12 months ago. The impact was felt on stock exchanges from Hong Kong to Wall Street.

These issues illustrate just one of the impacts of increasing globalization. Undoubtedly there are many, many benefits – the ability to Outsource manufacture to cheaper locations brings down the price of consumer goods. Products once deemed exotic are readily and cheaply available in our Supermarkets.  Clothing is cheaper than ever before. International communication has allowed relationships to develop over all of the continents breaking down cultural barriers and suspicions.

However, like anything else, there are downsides.

Sovereign Wealth Funds, controlled by State Oligarchs, have immense wealth and power at their disposal. Their decisions made in conference rooms in Beijing or Dubai can have devestating and massive impacts on jobs and prosperity in the U.K or elsewhere in the globe. These insitutions are not democratic in nature and are not answerable to any electorate.

How we in the “liberal” democratic World control and resist their impact remains one of our greatest challenges.

chris@projectsguru.co.uk

Dad, why don’t we make anything anymore…

ManufIts common knowledge in the U.K that manufacturing has declined over several years but the attached graphic illustrates just how serious that decline is compared to other leading nations. The situation after the credit crunch is likely to paint an even grimmer picture.

But why should anyone care ?   Does it reallly matter if we are making things or providing services instead ?

The fact that Japan, Germany, France and most leading nations are emerging from recession before the U.K may give some indication of that importance.

Manufacturing provides highly skilled jobs which are well paid. This leads to more purchasing power for the economy as a whole.

Also, for every job in manufacturing another 10 may be created in support functions and in the supply chain.

But, can we still afford to manufacture in the U.K ?

Anyone who has done a Business Plan for an engineering project should have realised that, when considering modern manufacturing equipment, direct labour cost is virually insignificant. What has a massive effect is the COST OF CAPITAL and therein lies the biggest clue to our problems.

If we want to prosper in the U.K with a fare distribution of wealth and an effective social care structure we need a vibrant, mixed economy of which manufacturing is a major key component.

This can only happen if Goverment has an effective manufacturing strategy with a good supply of reasonably priced Capital investment.

That is the challenge for Government of whatever persuassion.

chris@amberhill.biz

Outsourcing is not an easy answer…

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There is little doubt that outsourcing, when done correctly, can save money and inprove service but there are a number of things you need to be aware of when considering outsourcing:-

1) Product Quality – there are many in-house practices which are not documented which contribute to product quality. If  Product manufacture is outsourced these checks and balances will no longer be present and product quality will be adversely affected. It simply isn’t possible to document everything.

2) Hidden Cost – whereas unit cost will be cheaper (otherwise why do it) the overhead cost of managing and monitoring the Outsource supplier may be greater than anticipated, this needs to be closely monitored and managed.

3) Loss of I.P.R – It doesn’t matter what legal documents you sign some of your Intellectual property will be lost to the Outsource supplier and even end up in the hands of your competitors. You need to be aware of this.

4) Project Timescales –  Early Projects will suffer unplanned delays, this is an inevitable part of the learning curve.

5) Cultural Differences – these should not be underestimated and, if not clearly understood, will lead to confusion and misunderstanding.

Managing Ousource Projects requires experience and skill. You should seriously consider engaging an Outsourcing expert particularly in the early stages of the Project.

chris@amberhill.biz