1. Supporting Manufacturing Skills in Gloucestershire Tuesday 24 April, 2012

2. Festival of Engineering: 24 April 2012 Moog’s Growth Problem What is driving growth in servovalves? Medium sized jets are selling well in S.E. Asia (A320/737; 32 – 44 per month). Large backlogs. Barriers to entry for competitors; once you are on a programme, it is difficult for you to be dislodged.

3. Festival of Engineering: 24 April 2012 Moog’s Growth Problem What is the Company’s problem? Inability to create timely additional internal capacity Lack of suitable external suppliers with capacity Restricted capital and expertise to automate quickly Fixed prices which gives little leeway for increased salaries, etc. Improved productivity is the only way to allow increased salaries

4. Festival of Engineering: 24 April 2012 What has Moog done to increase capacity? Assembly & Test Recruited a number of ex apprentices or equivalents Not too many problems getting those people on site Automated test rigs to improve productivity Rate is very slow due to resource Applied flow line techniques (Lean), two bin, kanban, etc. Work lots of overtime

5. Festival of Engineering: 24 April 2012 What has Moog done to increase capacity? Machine Shop Recruited a number of skilled people to work shifts; very few have stayed Tried to run CNC machine tools unmanned Production Engineering skills have been lacking Trying to recruit Production Engineers Tried to offload initial roughing operations to sub- contract Limited success as most suppliers are full with no spare capacity for three months Work lots of overtime

6. Festival of Engineering: 24 April 2012 The Issues Very small pool of skilled machinists Wage rates are rising due to insufficient supply No need to take a job which works unsociable shifts Skills of new employees is not what it used to be Longer in-house training periods More quality audits More inspection Lots of scrap in the Machine Shops Not enough apprentices coming through the system

7. Festival of Engineering: 24 April 2012 How has Gloucestershire LEP AE&M helped itself? Attempted to estimate the future demand in our Sector 2012 – 2014; 2015 – 2020 Will work with HE/FE to match demand Create apprenticeship flyers for companies in our Sector Started to work with schools to change the perception of AE&M Trying to get funding for STEMworks in schools Trying to get funding for internships and supply chains Planning a video to promote our Sector

8. Festival of Engineering: 24 April 2012 Moog’s partnership with Tewkesbury School Created and monitored project work for years 12 and 13 for the last seven years Recently educated four teachers in the main skills required for AE&M business Design, Manufacturing Engineers, Operations, Purchasing, Logistics, Quality, Finance, Contracts/Legal, IT, HR Activity funded by GFirst Plan to take in thirteen students next term to get a general understanding of the above skills plus specific skills which will allow them to set up a business The plan next year is to run a business making parts for Moog