• Profitability transformation of manufacturing companies by removing some of their activities

    Over three decades ago, Lord Sainsbury of Turville created a scholarship programme (Sainsbury Management Fellows)  to educate engineers in leading international business schools with the objective of improving the performance of UK PLC.

    A recent example illustrates the impact of what they were taught and what transformations could also be achieved in your company by combining engineering and business skills to look inside your company’s operations.

    The board of a plastics recycling company in North Wales reviewed their innovative process of manufacturing plastic lumber from mixed plastics waste. (The board included a Sainsbury Management Fellow.) They removed over 60% of the equipment in the factory, realising that it led to menial jobs, adding little value to their process. That change, some common sense processing observations and some financial experience combined to making their Smartawood timber replacement product the lowest cost of any such product in the world and transformed the profitability of the company.

    Twelve months on and the company is  “oversubscribed” to such an extent, where the product is flying off the shelves, partly due to its low cost and partly because the customers like the 700kg of carbon that is saved from landfill, for every tonne they sell.

    This sort of analysis, using engineering and business skills combined to attack the costs of production can transform British industry (exactly as Lord Sainsbury predicted it would when he first started his scholarship programme).

    What stops you doing the same?

    Food for thought!

    This article was first published on LinkedIn.

blogBlog

  • Tuesday, 3 August 2021

    Should I choose a new career path or return to my employer after my MBA?

    The answer to this question very much depends on your MBA starting point.  If you are studying an Executive MBA and it is part of your firm’s career plan for you, then naturally you will be aiming

    Read More
  • Tuesday, 13 July 2021

    How to Fund My MBA?

    The decision to embark on an MBA is one of the most important of your career. The experience will sharpen your business skills and will open the door to new and exciting career opportunities in the fu

    Read More
More Blogs

The Sainsbury Management Fellows is registered as a charity: Engineers in Business Fellowship, charity number 1147203 and is a company limited by guarantee : 07807250