Supply Chain Development


Aims

Accelerate Wales is an initiative developed in consultation with and for the Welsh Automotive Industry, focusing on the improvement of Supply Chain performance. It also encourages firms to take advantage of the support that can be provided to them by government sponsored programmes.

The approach is different in that it allows 'Lead Companies' to encourage supplier participation for the benefit of their own performance but simultaneously achieve positive results throughout their Supply Chain/Value Stream.

In order to obtain funds, the 'Lead Company' is expected to recruit 8 or more companies to participate in their Supply Chain development programme and provide a business plan to support their application for 'Accelerate Wales' support. They must additionally commit to providing a 'Champion' whose costs will be supported by the initiative for a full three years.

Four of the recruited companies should fall within Objective 1 or 2 areas of Wales but all need not be current suppliers. Non-Welsh UK based suppliers may also be considered if they have a role in the performance of the chain as a whole and fall within the Accelerate (UK) catchment area.

In simple terms, the Initiative is seeking to achieve improvements in performance by participating companies that are at least comparable with those achieved by 'Industry Forum' programmes running in the West Midlands. Programme effectiveness will be evaluated through a combination of comparative Supply-Chain 'Value Stream Maps' and the seven measures of Quality Cost and Delivery (QCD) set out below:

 Average % ImprovementBest % Improvement
Not right First Time2565
Delivery schedule achievement4070
People Productivity3065
Stockturns135260
Overall Equipment Effectiveness2040
Value Added per person40100
Space Utilisation4090

Additionally, if the support provided has a direct contribution to saving or creating new jobs then this will be reported as well as the value of any new contracts. Ambitious targets have been set for the project overall, they are listed below:

OUTPUTS TOTAL
  • Number of accredited Supply-Chain Champions/Mentors recruited: 35
  • Number of SMEs receiving assistance: 150
  • Number of SME employees receiving individual training: 750
  • Automotive Supply Chain development Network created: 1
  • RESULTS TOTAL
  • Turnover growth £82.5m
  • Turnover safeguarded £40m
  • Gross Jobs Created 1222
  • Gross Jobs safeguarded 611
  • These figures have been taken out of the application for European Regional Development Funding.


    Management Structure

    The National Assembly Paper (EDC-12-00) approved by the Economic Development Committee stated that the initiative would be overseen by a Project Management Board, executed by a Project Management Team with application for funding/support reviewed by an Independent Appraisal Panel.

    This structure would be essential to ensure that a high level of focus and co-operation is brought to play, to enable access to the widest range of knowledge and resources for 'Lead' companies. If correctly resourced and supported, this arrangement should lead to maximum benefits for the industry and thus economy as a whole.


    Programme Management Board

    It has already been agreed that the Automotive Task Force will fulfil the function as the Accelerate Wales Programme Management Board. Its role is to oversee the initiative and ensure that the partnership is operating efficiently and effectively. Through the WDA Initiative Manager, it also has responsibility for the selection and approval of the Project Management Team and Project Appraisal Panel.


    Project Management Team

    The Project Management Team executes and administer the initiative as well as liase with business on an ongoing basis. It supports and co-ordinates the 'Application Appraisals' process but not any part in application approval decision making. As the WDA is the Lead Body, it has recruited and manages the core of administrative staff including a Project Team Manager who reports through the WDA Initiative Manager directly to the Management Board. ELWA nominates representatives to provide support on a more informal as required basis for liaison and advisory purposes as well as contribute to the training of Champions.


    Project Appraisal Panel

    The Appraisal Panel consists of specialist representatives from Industry, Academia as well as the WAF, WDA and ELWA. It reviews applications for Accelerate Wales funding, recommends to the Board whether the application should be approved as well as the appropriate level and staging of funding. Applications from Lead Companies are considered on the basis of a detailed business plan, which identifies the business development needs of the Lead Company and all participants. At the same time, they must commit to provide a Project Champion who may be recruited internally or not but must have the appropriate sector knowledge. In order to identify the most appropriate tools, techniques and training products as well as costs, Lead Companies may obtain support from the project management Team and the Welsh Automotive Forum in the construction of their business plan.

     

     

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