Change Management Report

Through an extensive range of skills and experience, the A-Belch Group has significant engineering and design capabilities to provide a complete and bespoke first class engineered solution from design to manufacture. Electrical and Mechanical engineering excellence Bespoke design solutions New product development programmer with continuous testing and development Quality design software enabling precision design and manufacture Continuous The Group incorporates HAD Lighting, A-Belch Hazardous Area, MAP Solutions, Electrical Engineering and Industrial Connectors.

The extensive product portfolio includes the HAD Hazardous area lighting range, hazardous area enclosures, witchery, electrical distribution panels, electrical accessories and innovative modular building service solutions. The Group is an established supplier to the UK and international petrochemical, energy, rail and construction markets. With over 25 years' experience in the energy sector, A-Belch excels in quality, price and delivery and after sales support.

My role within the organization is to plan and manage the production of the Had cell. A-Belch is SISSIES :2008 accredited - see attachment 1 . Part of my role is to ensure the product we manufacture is of a high quality and tests the SIRS certification requirements. Due to the highly hazardous environments our products are used in we must ensure all shop floor operatives follow controlled drawings and SOPs for each build stage. See attachment 2 for controlled drawing. Attachment 3 is an SOP that is used by shop floor operatives.

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The department strives for continuous improvements and all staff are encouraged to offer their opinions to develop the department further. It is important that the department continuously improves in its working practices and procedure to keep up with a growing demand for our product and changing market place. As the company is ISO accredited the quality management systems have been prepared to BBS EN ISO 9001 :2008 and ISO/ICE 80079-34. My department manufacture products that are certified explosion proof lighting for hazardous area.

All products are TEX and ICE certified and due to this a high level of quality is required during manufacture. All products are built to drawings which have been produced from certification drawings issued to SIRS the certification body. Without SIRS certification and approval no products can be manufactured. On each drawing is a list of components required is listed for the build. Along with the manufacture drawing a wiring diagram is supplied and a works instruction for the product. All finished goods are signed off by the production supervisor after being inspected.

Each build has a check sheet with stages of each Job that need to be complete and signed off by the relevant operator, these are then kept and filed for future reference and can be used if goods are returned due to a quality issue relating to the build as I am able to identify which operator manufactured the unit and apply the appropriate action or complete refresher training. Identify a change that is required identify a change required in the workplace and explain the potential benefits of this change to the organization.

Changing our current potting canines and process this will reduce down time and lead times, reduce annual cost, increase additional business and add to the growth and success of the department which will allow the company to develop in line with changes in the market place. Currently both potting machines run on a manual fill system where by each operative using the machine has to fill each hopper up by hand. In order to do this they need to stand on ladders and fill each hopper.

The approve. Weight of both the activator and base is KEG each. The activator is a harmful substance which can irritate the skin an eyes. Correct PEP is worn by each operative; however there is always a risk of both the activator and base splashing the individual. Manual handling is also a concern as the operative must climb onto step ladders carrying the base/activator to fill the hopper. Handling and risks to each operative can be avoided by moving to an automated bulk feed system.

By moving over to the automated system the health and safety risks will be reduced significantly as there will be no need for each individual to manually fill each hopper. The automated bulk feed system will be installed for both potting machines and will insist of twin pneumatically operated double acting diaphragm pumps with dip tubes and four off outlet hoses up to machine mounted reservoirs. Electronic high- level sensors will be fitted to each reservoir to automatically call-off material from the supply drum on demand and stop when the reservoir is full.

Pneumatically actuated ball valves will also be fitted onto each reservoir. Approve. Cost for this fitment EH,386. O + vat (inclusive of control box & on-site labor to fit) The proposed move over to an automated bulked system for both machines will: Reduce down time Reduce lead times Improve Health and Safety Improve potting procedures Reduce cost Reduce the amount of space needed to store the potting compound Reduce waste There will also be a cost saving to the company of approve.

EH,81 5 per annum based on previous usage. This is due to the unit price of the potting compound being reduced by moving over to large KEG drums. Planning and monitoring the change State the objectives of the change in order of their priority. At least one must be a SMART objective. Prepare an action plan for implementing the change. Explain the technique you would use to monitor the achievement of the primary objective. The objectives of the change are as follows:

• To purchase and install automated bulk feed system within stated budget week commencing 16th September 2013
• To have all shop floor operatives trained on the safe use of new equipment by 30th September 2013

Priority:

1. Health and Safety Improvements
2. Reduce cost
3. Reduce down time
4. Reduce manufacturing lead times
5. Improve potting procedures waste

The above has been identified by conducting a SMART analysis Specific Implementation of bulk feed system for both potting machines What: What do I want to accomplish?

Improvements to health and safety of shop floor operatives Cost saving - see below. Why: Specific reasons, purpose or benefits of accomplishing the goal. Reduce down time Who: Who is involved? Potting Machine Supplier - Meter Mix Potting Compound Supplier - Greenfield Polymers Production Manager - Me Floor Manager - SST Handmaids Shop floor operatives Divisional Director - Bob Scott Chief Executive - Brian Trench Where: Identify a location. New Had manufacturing facility Which: Identify requirements and constraints.

Proposal of the change and cost savings/payback and benefits will have to be presented to higher management Upfront cost needed Current stock may be an issue as we use KEG drums and not KEG - need to identify if we can use current drums or swap with supplier for larger ones Identify space needed - this could be an issue. Will we have enough space for the bulk feed system in the new factory? Measurable How much? How many? Two machines will be needed How will I know when it is accomplished in 12 months' time when cost savings can be recorded Achievable How: How can the goal be accomplished?

A report will need to be drafted up to highlight the benefits Installation will be done by Intermix Training of all shop floor operatives will be complete by the Floor Manager Relevant Does this seem worthwhile? The upfront cost is expensive, however the benefits the manufacturing cell and cost saving the company will gain outweigh the cost There is also a payback time due to the cost saving of the potting compound Is this the right time?

Yes, the changeover is needed to reduce downtime and to allow output to increase Completion of the new factory extension will be the best time to implement this Are you the right person? As the Production Manager for the department I am responsible for the improvements to the department Time Based When? Implementation/installation - September 2013 What can I do six weeks from now? Sign off from Director Arrange Meeting with potting machine supplier to get the ball rolling Arrange meeting with potting compound supplier to inform of change What can I do today?

Prepare report for Director of the benefits and cost of the bulk feed system In order to proceed with the change I have prepared an action plan detailing the stages I will need to work through in order to implement the change.

Action Plan:

1. Date of activity  Supplier Meetings Potting Machine - Meter Mix Advise on how the bulk feed system will work Discuss Cost Delivery and installation date to be agreed Discuss Training of staff
2. Potting Compound - Greenfield Polymers Cost of KEG drums Can current KEG drums be used on bulk feed machines December 2012  Prepare report for Divisional Director Highlight cost saving Payback Benefits January 2013 - See attachment 4
3. Sign off by Divisional Director and Chief Executive January / February 2013
4. Supplier Meeting Agree options Discuss payment options Agree installation date April 2013
5. Raise purchase order and send to Meter Mix September 2013
6. Discuss with Floor Manager and add new location to new factory floor plan June 2013
7. Implementation/limitations w/c 16th September 2013
8. Staff Training Include in training matrix for all Shop Floor Operatives Tool Box Talk to be auctioned SOP to be updated 9
9. Stock change over January 2014
10. Record cost savings monthly

Monthly spend and usage Compare finding against previous 12 months sales Record findings in a spread sheet In order to monitor the achievement of the primary objective I would monitor the monetary value of the activator and base per month based on the usage and compare this against previous months before the new bulk feed system was implemented. This would be recorded in in a spreadsheet which I would design. The health and safety of each member of staff using this equipment is vital, however the improvements to the health and safety is difficult to manage. In order to ensure highlighting the differences between the two machines relating to health and safety. I would also perform a questionnaire with the operators using the machine to record feedback on the improvements to health and safety.

Implications of the change Explain the possible financial effects of the change on the organization, Explain the possible effects on people inside the organization Identify any potential barriers to change and suggest practical ways of overcoming these In order to commission the bulk feed system there is an initial outlay of EH,386. O, however this has a payback time of 43 months after which the company will save approve. EH,81 5 per annum on potting compound based on current usages. If I factor in the saving in down time on the factory floor this equates to a saving of 0. App per 25 KEG drum so therefore the payback time will decrease to 30 months.

Even though there is a financial out lay the improvements to health and safety outweigh these massively. There will be a staff training exercise to complete with each Shop Floor Operative and raining to be received from Intermix who are installing the potting machine. The training will be given by the Shop Floor Manager to each staff member and a tool box talk will be completed. Future stock of the potting compound will have to be managed differently so training will need to be given to the department buyer as to how she will manage this. Attachment 5 shows the team update that was sent to inform every one of the status of the bulk feed system and update the buyer on how she is to manage stock Sty and orders.

Discussions with Greenfield Polymers have been made by me in order to inform them f our current stock Sty's and discuss when the change over to KEG drums will take place. The final batch of KEG drum stock needs to be purchased from our supplier first before the changeover happens. Currently the activator and base are purchased on one part number and ordered in a 5:1 ratio. In order to simplify this I have created separate part numbers for both components which after discussing with Greenfield Polymers will make ordering and consumption of stock more manageable and straight forward. Attachment 7 shows the price breaks for both the activator and potting compound.

By creating separate art numbers AL 10049 - Base and ALLELUIA - Activator will also allow us to manage the stock more efficiently when stock takes take place as each individual item will be counted separately. The biggest barrier I will need to overcome will be convincing the Had Director and Chief executive that this change needs to happen and the positive impact it will have benefits to the organization and people within it and the cost saving this change will make. This should suffice as evidence the system is needed and the benefits this will have to the team and company. See attachment. This report will be presented to he Had Director and the main objectives discussed.

Communicating and implementing the change Identify who needs to know about the change, describe how you will communicate with them and explain why it is important to communicate the change to them. Explain how you will continually improve once the change has been implemented. Explain how you will involve your team in doing this, and identify which tools or techniques you could use and how you would evaluate these improvement activities. The Had Office team and Shop Floor Operatives need to know about the change as there are action points for some staff members. They will be made aware of the commission of the bulk feed system via email and any questions they have will be discussed. Attachment 5 shows one of the updates I will send to the team making them aware of the commission date and stock management.

Once the bulk feed system has been commissioned an email will be sent with photographs of the bulk feed system and the improvements this will make to the team and Production Department. This email will be sent to the Office team, Floor Manager and Had Director. The Health and Safety Manager will also be included in this email and made aware of the change as the improvements to Health and Safety f Staff members is quite significant. Once the change has been implemented it is important to review this in order to improve the process. Some areas that I would review would be the following: Improvements to equipment - I would contact Intermix who installed the machine to see if there is any additional equipment that could be bought to reduce down time further.

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