Manufacturing in the UKBUSS4 Section A

2015

www.time2resources.co.uk

You will need a

copy of the AQA

Research Theme.

Manufacturing in the UK“The process of transforming raw materials or components into finished goods in order to add value and meet customer needs.”

Manufacturing normally involves:

Man made machinery Division of labour Large scale production

Recap BUSS1:Use the poster opposite to

discuss the term manufacturing.

Manufacturing is only part of the

bigger picture – Evan Davies.

Manufacturing in the UK What do you think of when you think about

manufacturing? Is this an accurate perception of manufacturing in

the 21st Century? How important is manufacturing to the UK

economy? What does manufacturing in the UK look like in

the 21st Century?Why is manufacturing

important to the UK economy?

Made in Britain

A potted history leading to manufacturing in the 21st Century

A look at how the importance of manufacturing in the UK has changed over time

Watch this 15 minute lecture from the FT’s Peter March

Consider the 4th bullet point under the section “You are strongly recommended to:”

Make brief notes

170 years of industrial change

“Relevant business theory should not be neglected” Examiner’s report June 2014

Porter’s Generic Strategy

“48% of UK companies focus on quality as one of their main areas of competitive advantage, compared with 17% that compete on price.”

www.eef.org.uk

Manufacturing in the UK Employs approx. 2.6m people Contributes 10 -11% to GDP Output declined sharply during the 2008/2009

recession Declined again 2012 Relatively strong recovery 2013 What’s happening now?

UK manufacturing growth at 14-month low, PMI survey finds.

Eurozone manufacturing growth at 13-month low.

Manufacturing growth slowing, says EEF.

To what extent do you think it is right to be optimistic about UK manufacturing?

The Guardian: Manufacturing data.Keep up to date by following this link.

Manufacturing: statistics and policy Use the link above to access the Manufacturing:

statistics and policy document In pairs read through pages 3 to 7 For each chart or table of data select 1 or 2 key

pieces of data Write 2 sentences for each chart or table of data

What does the data tell us? Analyse this trend

Review regularly updated summary of key data from the manufacturing sector. Source: www.Parliament.uk

Discuss the data presented in the Sept. 2014 Economic Indicators update. Compare this with the latest update using the link below. Source:

www.Parliament.uk

Manufacturing in the UK

Manufacturing Advisory Service SMEs predict continued expansion:

64% predict rise in turnover 32% rise in staffing

Expect future growth would come mainly from domestic markets Including work reshored from overseas

Unprecedented investment into sectors including: Automotive Growing reputation for high technology low carbon advancements New infrastructure projects e.g. High Speed 2 and Hinkley Point

"This information was taken from the Manufacturing Advisory Service National Barometer.”

View full MAS report.

English manufacturers target home comforts to boost long

term growth.

What do the key findings on page 4 tell us about the current levels of confidence amongst the UK’s SMEs?

How significant is this for the recovery of the UK economy?

Produce a mind map, infographic, fact card to record key data from pages 4 to 7 and 10 and 11.

“Relevant business theory should not be neglected” Examiner’s report June 2014

View full MAS report.

Ansoff’s matrix

With reference to the data on page 8 reproduce a version of Ansoff’s matrix to show its application to SME manufacturers in the

UK.

Manufacturing in the UK

Manufacturing in the UK

Manufacturing in the UK Consider how each of the bullet points are interlinked

Your research task 2015

Manufacturing in the UK

Technological change

Opportunities and threats

Factors affecting location

Government policy

Increasing globalisation

Consider the 5 key trends outlined in this article in relation to your research theme. Add notes to the spider diagram.

“Industries are as individual as the people who work in them.”

www.KPMG.org.uk

AutomotiveTextile/fashionFood and drink

Industries

Here are the 3 industries we have chosen to focus on this year. Your research can focus on just these, a selection of

your own industries or a combination.

MAS report review pages 12

and 13.

In pairs:Define job, batch and flow production.

What are the advantages and disadvantages of each?Can you think of examples of each within these 3 industries?

UK manufacturing statistics Use this report to complete the table below

Can you reach any conclusions about the relative size and role of these 3 industries?

Industries

Industry Size Investment

Financial data

Contribution to GVA

Employment

Automotive

Food and drink

Textiles

Background to the automotive industry

Automotive industry

o What vehicles are made in the UK?o Are any of these UK owned or just UK produced?o Do you know where the vehicles are made in the UK?

o Scroll down to watch this video overview of the UK automotive sectoro It is recommended to watch this 2 or 3 times

o 1 watcho 2 watch and note down key factso 3 watch and pause to discuss the manufacturing

taking place e.g. look for robotics etc.o Look at just what is made in Britain “British made motors take over the

Mall”

o Diverse, vibrant, world class – view the images on the first and last page of the “Driving success” document. Do you agree with this 3 word summary of the UK automotive sector?

Motor industry facts 2013 On average, the UK produces 1.6 million cars and commercial

vehicles and over 2.5 million engines Around 80% of vehicles and 60% of engines are sold overseas UK automotive is a vital part of the UK economy and typically

generates around £60 billion in annual turnover, delivering around £12 billion in net value-added to the economy

The automotive industry is the UK’s largest sector in terms of exports and generated £27 billion of export revenue for the UK in 2011. In a typical year, the sector exports to over 100 markets worldwide and accounts for around 11% of total UK exports

Average new car CO 2 emissions fell to a new low of 133.1g/km in 2012, and have fallen by over 20% in the last 10 years

Source: Motor Manufacturers and Traders’ (SMMT)  

Automotive industry

View page 8 of the SMMT fact book – what is the UK home to? Can you name any of them?

UK car industry firing on all cylinders British car manufacturing accelerates sharply in April.

Background to the food and drink industry

Food and drink industry

o The UK’s largest manufacturing industry

o View this FDF video clip as an introduction to some UK based food manufacturerso Consider the various stages in the production process

o How important is it to the UK economy?

Read more about the industry. Produce a summary of key points

for your notes.

Background to the food and drink industry

Food and drink industry

What other famous UK food and drink brands can you name?

Background to the textile/fashion industry The textile industry in the UK has a long history and is

probably the industry behind the industrial revolution in the UK

View the history of the UK textile industry

Where is it today?

Produce a spider diagram, fact card or infographic to summarise the statistics for the UK textile industry

Textile/fashion industry

What is the impact of technological change on businesses manufacturing in the UK?

New product development New processes Consumers’ expectations Competitors’ actions Communication Distribution Marketing opportunities

How might these technological changes affect the strategies of businesses manufacturing in the UK?

BP1 Technological change

Discuss how each of these changes may impact on manufacturing

firms. Try to think of positive and

negative impacts.

What’s hot in manufacturing?The Economist: How robots and people team

up to manufacture things in new ways.

Research activity

Automotive industry

Technology change within the automotive industry2 themes:• Theme 1 - Research and development and manufacturing processes

• “Additive Manufacturing (AM) refers to a revolutionary range of processes that can create parts with hitherto impossible geometries; often within a space of hours”

What does additive manufacturing or 3D printing mean?

• Theme 2 - Green technologies• Low carbon fuel technologies

• New fuels• Electric and hybrid systems• Lightweight structures• Advanced propulsion systems• Intelligent transport systems

There is a strong link between technological change, green technologies, and legislation. This links BP1 and BP3 together.

View pages 13, 45 and 46 of the SMMT Motor Industry Fact Guide.

Research activity Changes in technological processes, or how

we manufacture, include: ICT for modelling and simulations Sensors to check inventory and to diagnose

faults Additive manufacturing i.e. 3D printing Biotechnology to provide better health treatment Advanced materials to create intelligent

production processes and products Robotics and automation to carry out routine

operations cleanly, safely and accurately

Fashion/textile industry

Glossary of key terms Technological change: the developments and sharing/spreading of

technological advances in product and processes Technology: the use of scientific discoveries in a practical way Additive manufacturing (3D printing): an emerging technology that

allows an object to be created by printing razor-thin layers of material on top of each other until a three-dimensional shape emerges

Technical economies of scale: the benefits enjoyed when a firm is able to spend more on larger and more efficient machinery leading to a fall in average costs

Capital intensive: manufacturing processes that use a high proportion of capital, such as machinery, in the production of a good or service

BP1 Technological change

Practice question 150 minutes = 10 minutes reading and

planning + 40 minutes writing

Level Descriptor Mark

L5 Application/analysis both good 26-23

L4 Application/analysis 1 good and 1 reasonable 22-18

L3 Application/analysis both reasonable or 1 good and 1 limited 17-13

L2 Application/analysis 1 reasonable and 1 limited 12-8

L1 Limited response knowledge only 7-1

Level Descriptor Mark

E3 Good evaluation with evidence of research (+QOL) 14-11

E2 Reasonable evaluation with evidence of research (+QOL) 10-6

E1 Limited evaluation (+QOL) 5-1

Assessment Activity

What is the impact of globalisation on businesses manufacturing in the UK? Access to global markets Competition Economic and geopolitical influences on

demand Remember impacts can be positive and

negative! Read the 2 articles to identify positive and negatve impacts

Globalisation

“FEW words invoke such contrasting feelings as “globalisation”. For some it is pejorative: Wall Street protestors use it is as shorthand for the evils of global capitalism, sweat shops and malignant power.” The EconomistWhat does globalisation mean to you?

BBC Key facts: The global economy.

Research activity - Automotive Identify key trends from pages 20 and 21 of the

SMMT motor fact guide

Visit these 2 UK shoe manufacturers websites http://www.crockettandjones.com/ http://www.cheaney.co.uk/

What image do they portray?

BP2 Globalisation

Research activity - Fashion

Glossary of key terms

Globalisation: The integration of international economies leading to a world market or the process of greater integration and inter-connectedness between countries

Geopolitical factors: the combination of geographical and political factors

Emerging markets: countries with low to middle average income per person

G7: a group of 7 major economic powers who meet to discuss key economic issues. The 7 members are Canada, France, Germany, Italy, Japan, UK and USA

Globalisation

Practice question 250 minutes = 10 minutes reading and

planning + 40 minutes writing

Level Descriptor Mark

L5 Application/analysis both good 26-23

L4 Application/analysis 1 good and 1 reasonable 22-18

L3 Application/analysis both reasonable or 1 good and 1 limited 17-13

L2 Application/analysis 1 reasonable and 1 limited 12-8

L1 Limited response knowledge only 7-1

Level Descriptor Mark

E3 Good evaluation with evidence of research (+QOL) 14-11

E2 Reasonable evaluation with evidence of research (+QOL) 10-6

E1 Limited evaluation (+QOL) 5-1

Assessment Activity

What is the impact of government policy on businesses manufacturing in the UK?

George Osborne “is hoping the UK economy will develop a greater reliance on manufacturing and exports and a lesser reliance on debt fuelled spending and financial services” Source The Guardian

Vital to economic prosperity therefore the Government needs to address: Energy costs Education Transport systems

Rebalancing the economy/sustainability

Government policy

“A great story of the future of Britain” David Cameron visits JLR.

“The Government has committed £400 million to make the UK a leading market for ultra low carbon vehicles. ” David Cameron visits Nissan Leaf.

Revisit the “Why Make it Britain?” Based on your research to date to what extent do you agree with

the comment “Manufacturing is crucially

important to the UK’s economic prosperity”.

Discuss, unpick and annotate the 2 quotes below:

“Government and business must work together to place manufacturing at the forefront of economic development, creating a strong and sustainable, internationally competitive industrial base.”

www.cbi.org.uk

“ We want the words: “Made in Britain”, “Created in Britain”, “Designed in Britain” and “Invented in Britain” to drive the nation forward – a Britain carried aloft by the march of the makers. That is how we will create jobs and support families.” The Chancellor of the Exchequer March 2011

Manufacturing: statistics and policy Use the link above to access the Manufacturing: statistics and

policy document Read and make summary notes on pages 8 to 11

Government policy

Government Apprenticeship Scheme Growing manufacturing apprenticeships

Nick Clegg meets apprentices

Vince Cable tells apprentices to “Get in and Go far”

Vince Cable to boost apprenticeship pay

New skills programme for Bentley

Motor industry and government policyWHY?

In 2012 • generated £12 billion • directly employed 731,000 people• exports were valued at £31 billion, 10% of UK exports by value• attracts inward investment from a wide variety of foreign countries• supports over 2,000 businesses

HOW?• The Automotive Council UK www.smmt.co.uk formed in 2009• Joint partnership between the UK’s automotive industry and government to create an

environment in which the industry can be successful and grow• The Council is co-chaired by the Secretary of State for Business Innovation and Skills and

industry chair• Brings together the leaders of from across the sector

The Government have also announced the following key policies to help the industry:• £1bn co-funded Advanced Propulsion Centre to develop new technologies• A target of 7,600 apprentices and 1,700 graduates to be recruited over the next five

years• Automotive Investment Organisation set up to support inward investment www.parliament.uk• Above the line R&D tax credit introduced in 2013

• makes projects more affordable and encourages higher investment in R&D

Government policy

Research activity Can you remember:

What is the UK government’s target is for CO2 emissions?

How much has been invested? Revisit the article “Car technology driving more

sustainable transport systems.” http://www.bbc.co.uk/news/business-27327540

What role has the government played in supporting the UK automotive industry? Why is this important?

Automotive industry

Research activity - Fashion

Before looking in detail at the textile and fashion industry take a brief look at what David Cameron says about the food and drink industry?

Textile/fashion industry

Glossary of key termso Government policy: actions taken by the

Government to stimulate or control economic activity

o Servitisation: providing services to support a business’ main sector e.g. a manufacturing firm providing services and solutions along side their products

o Regional growth fund: a Government fund of £3.2bn designed to encourage investment in the private sector to support sustainable growth and employment

Government policy

Practice question 350 minutes = 10 minutes reading and

planning + 40 minutes writing

Level Descriptor Mark

L5 Application/analysis both good 26-23

L4 Application/analysis 1 good and 1 reasonable 22-18

L3 Application/analysis both reasonable or 1 good and 1 limited 17-13

L2 Application/analysis 1 reasonable and 1 limited 12-8

L1 Limited response knowledge only 7-1

Level Descriptor Mark

E3 Good evaluation with evidence of research (+QOL) 14-11

E2 Reasonable evaluation with evidence of research (+QOL) 10-6

E1 Limited evaluation (+QOL) 5-1

Assessment Activity

What are the factors affecting the location decisions made by UK manufacturing businesses?

Infrastructure Inertia/tradition External economies of scale Proximity to customers Proximity to raw materials Availability of workforce Government incentives

Location decisions

What are Lord Sugar’s views on manufacturers’ location decisions?

Discuss the significance of manufacturing to different UK

regions?Why do you think some regions have significantly more manufacturing than

others?

Read and make notes – pages 3 – 10 Backing Britain.

You are strongly recommended to consider decisions by businesses to: Manufacture in the UK Offshore manufacturing from the UK Re-shore manufacturing to the UK

Location decisions

View key facts about re-shoring to the UK.

How significant is the EU when considering manufacturing in the UK.

Read and make notes – pages11 – 18 Backing Britain.

Is re-shoring the way forward?

Research activity - Automotive

“More than 40 companies manufacture vehicles in the UK ranging from global volume car, van, truck and bus builders to specialist niche makers.” Source: www.SMMT.co.uk

Interactive map: do you know what is made near you?

The AA: Made in Britain

BP4 Location decisions

Research activity - Fashion

Glossary of key terms Location decisions: an important strategic decision

that will influence a firm’s ability to meet corporate objectives

Off-shoring: relocating abroad i.e. away from the domestic country

Re-shoring: relocating back home i.e. bringing a business back to the domestic country

External economies of scale: the benefits enjoyed by a firm from being part of a larger industry leading to a fall in average costs

Location decisions

Practice question 450 minutes = 10 minutes reading and

planning + 40 minutes writing

Level Descriptor Mark

L5 Application/analysis both good 26-23

L4 Application/analysis 1 good and 1 reasonable 22-18

L3 Application/analysis both reasonable or 1 good and 1 limited 17-13

L2 Application/analysis 1 reasonable and 1 limited 12-8

L1 Limited response knowledge only 7-1

Level Descriptor Mark

E3 Good evaluation with evidence of research (+QOL) 14-11

E2 Reasonable evaluation with evidence of research (+QOL) 10-6

E1 Limited evaluation (+QOL) 5-1

Assessment Activity

What are the opportunities facing businesses manufacturing in the UK?What are the threats facing businesses manufacturing in the UK?

Reread the article “UK manufacturers hit by global economic worries.” http://www.bbc.co.uk/news/business-29591389 To what extent is the external economic environment a major

threat to UK manufacturers?

Opportunities and threats

.“After years of decline, it’s time to be optimistic about UK manufacturing”Read this article and identify opportunities and threats. Add to your notes.

What would Lord Digby Jones say are the opportunities and threats?

Opportunities include: The UK has used its skills base to develop niche

manufacturing This has seen market development in the US, EU and larger

emerging markets such as BRICS and MINT Product development has taken place to cater for these

different markets As the global economy grows increased income will lead

to greater demand for quality, environmentally friendly products

Changing demographics are creating growing markets Structural change is occurring through general purpose

technology e.g. the internet The UK produces high value products at home and low

value products abroad It is highly exposed to foreign investment and ideas that can

benefit the economy in future years

Opportunities

Threats include: Increasing skills in emerging economies and a lack of

skills in the UK have seen an increase in higher value output abroad

This could cause significant problems in future years as overseas students are educated in the UK and transfer knowledge back to their own economies

This is also happening with the foreign takeover of UK plc A lack of understanding of export markets could prevent

UK manufacturers from fully developing their export potential

Inadequate investment in R&D and automation is a concern

There are significant energy costs to manufacturing

Threats

Manufacturing Advisory Service

Opportunities and threats

View full MAS report.

"This information was taken from the Manufacturing Advisory Service National Barometer.”

Discuss the extent to

which each of these

strengths and

challenges can create

opportunities and

threats.

Research activity - Automotive Read the article “JLR chief’s review urges

UK research and skills investment

Visit the following websites http://www.harristweed.org/ http://www.hunterboots.com/ http://www.barbour.com/uk

Opportunities and Threats

Discussion points:Are research and skills in the UK an opportunity or a threat?

Is EU membership an opportunity or a threat?

Research activity - Fashion

Glossary of key terms Opportunities: the external aspects of the business

environment that can benefit manufacturing businesses that are able to positively exploit them

Threats: the external aspects of the business environment that can harm manufacturing business that are not able to avoid them or turn them to their advantage

Provenance: the place of origin of a product

Opportunities and threats

Practice question 550 minutes = 10 minutes reading and

planning + 40 minutes writing

Level Descriptor Mark

L5 Application/analysis both good 26-23

L4 Application/analysis 1 good and 1 reasonable 22-18

L3 Application/analysis both reasonable or 1 good and 1 limited 17-13

L2 Application/analysis 1 reasonable and 1 limited 12-8

L1 Limited response knowledge only 7-1

Level Descriptor Mark

E3 Good evaluation with evidence of research (+QOL) 14-11

E2 Reasonable evaluation with evidence of research (+QOL) 10-6

E1 Limited evaluation (+QOL) 5-1

Assessment Activity

Trial Exam Trial Assessment

55 minutes 15 minutes reading and planning 40 minutes writing