Home: Issue 1 2013 › Improvement & innovation
Improvement & innovation
06/03/2013 | Channel: Technology, Engineering
SC21 has been an essential tool in optimising AWS Electronics Group Limited's business opportunities
AWS Electronics Group Limited was originally founded in 1974 as a electronics company and has evolved into an international electro /mechanical outsourced manufacturing services firm producing equipment for clients in a wide variety of sectors. Today AWS, headquartered in Worcester, the UK, is one of the leading names in its sector, having grown extensively during the last decade since a buyout in 2005. At that time it had a turnover of approximately £10 million and by the end of 2012 this figure had increased to £40 million. Growth of this magnitude was achieved both organically and through strategic acquisitions, including of a low cost manufacturing facility in Slovakia.
AWS’ biggest role is manufacturing equipment for clients that own design rights. Its portfolio covers an extensive range of equipment: it created programmes in and around robotic bomb disposal that were first used at the London 2012 Olympics before being adopted by the British Ministry of Defence, for example, as well as radar systems intended to aid soldier protection and support in the field of duty. Another recent project was helping to realise world leading and affordable forensic analysis equipment for petty crime. It is currently working on communication technologies for soldiers. Not only are its capabilities wide ranging but also AWS is known for high quality across all its products.
One of AWS’ core markets is the aerospace, defence, and security (ADS) sector. In order to optimise its organisation, the British company became part of the industry’s SC21 programme designed to improve the supply chain. CEO Paul Deehan talks about SC21 in greater depth: “We were one of the first small to medium enterprises (SMEs) to really embed the culture that has been intended to change the way SMEs work in this sector. I was previously in the automotive sector where there are a number of similar initiatives to support the UK supply chain, where they used the principles of continuous improvement and standardisation and waste elimination to run a business more efficiently. That encapsulated everything we were trying to do with AWS and SC21 fitted very well into that.
“By being part of SC21 we have gained many advantages. By itself, the programme hasn’t won us business, but it has been essential in helping us to expand our activity in the ADS sector. Every client that we work for at present sees it as encouraging that we are so supportive of SC21 and this has helped to grow our reputation. AWS was actually the first SC21 company to win an award – a silver award – and that has helped broaden and expand the work we do. We have since achieved silver three years running. The other advantage is that is can help bring differentiation to a business by generating genuine improvement not only in work with the ADS sector but across our company as a whole. A lot of companies that took SC21 onboard in 2007 and 2008 are still in business despite the recession and I believe that the supply chain improvement programme was an important factor in achieving this.”
SC21 is a two-way street, however, and in addition to benefits gained by signing up to the programme, AWS has also sought to make improvements in-house that can then feed back into the programme. Big emphasis has been placed on careful selection of supply chain partners, for example, from primes right through to its metal and plastic material suppliers. There is a push from across the UK ADS sector to increase the cost and competitiveness of the industry and AWS is helping achieve that through working with the best of the best.
Apart from SC21, AWS has a number of other important aspects to its business that make it stand out. One of its most important is a world-class low cost manufacturing facility located in Namestovo, Slovakia, originally acquired in 2007. Held to the same high standards as the UK branches, the Slovakian factory enabled AWS to deliver the products for which it had become known as a lower price point than ever before. This was improved in 2009 when the company moved to a brand new purpose built EMS facility. AWS has continued significant inward investment at the facility over the last four years.
As previously stated figures illustrate, the market has proved to be a good place for AWS during the last few years. Paul discusses the state of the market in more depth: “Overall the last few years have been challenging but successful. Our top line has grown and continues to grow although margins are getting tighter. Pressure in the economy means people need to work more smartly now. Companies must be clever in their approach and get used to working from a lower margin and with a tighter cost base. Within AWS our overall top line has continued to grow in what has been and continues to be difficult, turbulent economic times. I don’t see a great change to the economic climate over the next few years so we must knuckle down and work hard to continue growing within our limits.”
Growth forms the basic plan for AWS’ future, both organically and through acquisition and consolidation. It is particularly interested in the US market but looking at many different opportunities with an eye for interesting, innovative products. “There are still tough times ahead so we need to remain flexible, as that is one of the key reasons companies use UK support operations when manufacturing,” Paul states. “We are also looking at growing our presence in the offshore sector. AWS will also continue focusing on SC21, continuous improvement, and working smarter as we go forwards.”
AWS Electronics Group Limited
Employees 400
Products Electronics & mechanical engineering
AWS’ biggest role is manufacturing equipment for clients that own design rights. Its portfolio covers an extensive range of equipment: it created programmes in and around robotic bomb disposal that were first used at the London 2012 Olympics before being adopted by the British Ministry of Defence, for example, as well as radar systems intended to aid soldier protection and support in the field of duty. Another recent project was helping to realise world leading and affordable forensic analysis equipment for petty crime. It is currently working on communication technologies for soldiers. Not only are its capabilities wide ranging but also AWS is known for high quality across all its products.
One of AWS’ core markets is the aerospace, defence, and security (ADS) sector. In order to optimise its organisation, the British company became part of the industry’s SC21 programme designed to improve the supply chain. CEO Paul Deehan talks about SC21 in greater depth: “We were one of the first small to medium enterprises (SMEs) to really embed the culture that has been intended to change the way SMEs work in this sector. I was previously in the automotive sector where there are a number of similar initiatives to support the UK supply chain, where they used the principles of continuous improvement and standardisation and waste elimination to run a business more efficiently. That encapsulated everything we were trying to do with AWS and SC21 fitted very well into that.
“By being part of SC21 we have gained many advantages. By itself, the programme hasn’t won us business, but it has been essential in helping us to expand our activity in the ADS sector. Every client that we work for at present sees it as encouraging that we are so supportive of SC21 and this has helped to grow our reputation. AWS was actually the first SC21 company to win an award – a silver award – and that has helped broaden and expand the work we do. We have since achieved silver three years running. The other advantage is that is can help bring differentiation to a business by generating genuine improvement not only in work with the ADS sector but across our company as a whole. A lot of companies that took SC21 onboard in 2007 and 2008 are still in business despite the recession and I believe that the supply chain improvement programme was an important factor in achieving this.”
SC21 is a two-way street, however, and in addition to benefits gained by signing up to the programme, AWS has also sought to make improvements in-house that can then feed back into the programme. Big emphasis has been placed on careful selection of supply chain partners, for example, from primes right through to its metal and plastic material suppliers. There is a push from across the UK ADS sector to increase the cost and competitiveness of the industry and AWS is helping achieve that through working with the best of the best.
Apart from SC21, AWS has a number of other important aspects to its business that make it stand out. One of its most important is a world-class low cost manufacturing facility located in Namestovo, Slovakia, originally acquired in 2007. Held to the same high standards as the UK branches, the Slovakian factory enabled AWS to deliver the products for which it had become known as a lower price point than ever before. This was improved in 2009 when the company moved to a brand new purpose built EMS facility. AWS has continued significant inward investment at the facility over the last four years.
As previously stated figures illustrate, the market has proved to be a good place for AWS during the last few years. Paul discusses the state of the market in more depth: “Overall the last few years have been challenging but successful. Our top line has grown and continues to grow although margins are getting tighter. Pressure in the economy means people need to work more smartly now. Companies must be clever in their approach and get used to working from a lower margin and with a tighter cost base. Within AWS our overall top line has continued to grow in what has been and continues to be difficult, turbulent economic times. I don’t see a great change to the economic climate over the next few years so we must knuckle down and work hard to continue growing within our limits.”
Growth forms the basic plan for AWS’ future, both organically and through acquisition and consolidation. It is particularly interested in the US market but looking at many different opportunities with an eye for interesting, innovative products. “There are still tough times ahead so we need to remain flexible, as that is one of the key reasons companies use UK support operations when manufacturing,” Paul states. “We are also looking at growing our presence in the offshore sector. AWS will also continue focusing on SC21, continuous improvement, and working smarter as we go forwards.”
AWS Electronics Group Limited
Employees 400
Products Electronics & mechanical engineering