B3 Cables

Source: Exec Digital UK

Date :21/05/2007 16:04:12

B3 Cables: A company that uses hi-tech systems to supply hi-tech industries

Steve Ellis, 43, was appointed MD of B3 Cable Solutions in January this year. He is experienced in manufacturing across a range of industries, including previous roles in the cable division of BICC Group (later part of the Corning Group), Pirelli Cables and Systems (now known as Prysmian Cables & Systems), AEI Cables and more recently Hoya Lens UK Ltd. Steve, who grew up in Ipswich, Suffolk, says he relishes “the challenge of applying and bringing about improvement and growth in a fiercely competitive market. From a personal point of view I have worked both inside and outside of this industry for a number of years and seen both similarities and differences between the markets in which I have worked”

Written by Alison Withers & Produced by Alex Smith

It all began a year ago

B3 came into existence just over a year ago following the acquisition of Belden CDT in Manchester. Mr. Ellis told us: “Belden CDT had made the decision to exit telecommunication cables market in the UK. B3 was formed as a result of a BIMBO (buy in by Aston Ventures and buy out by certain directors of the existing business). The board comprises representatives of Aston Ventures and the Directors of B3.

He says: “Two themes which I have found important across different industries are the development of a product and service package which has something unique about it and working in partnership with customers. Each of these is essential in protecting and growing a supplier business. We have a strategy which is designed to bring about further growth and consolidation of our business in the short term and which majors on key strategic work streams – organization, location & facilities, customer relationship and contracts, supply chain integration & development. The strategy has been developed over the past year and is reviewed quarterly against the key milestones.”

Essentially a B2B organization with extensive integration of its supply chain with its key customers, B3 Cable Solutions focuses on improving its manufacturing processes through continuous improvement (utilizing Kaizen methodology extensively), through capital investment where appropriate and through outsourcing where there is an economic or service case. Its strategic organization plan is linked to a succession planning process whereby staff roles that will need to be filled are highlighted and assessment made of individuals aspirations and training needs. Kaizen has been a key business philosophy with B3 since its creation last year and within the Manchester unit itself since 2000. The vast majority of staff in the UK business has had personal involvement in Kaizen events and the whole process is integral to the business.

B3 has well-established processes for attracting the staff it needs. Says Mr. Ellis: “We have strong development and training processes which have been developed in the UK business and we intend to adapt these elsewhere in our business. We have IiP (Investors in People) accreditation in Manchester. We have links with schools, local communities and charities.”

To counteract any difficulties in operating a lean supply-chain system - for example in ensuring continuity of raw materials for meeting urgent orders - copper is sourced on contract and care is taken to spread any sourcing risk.

Mr. Ellis says: “We continue to evaluate existing supply chains and develop new ones with this key material, but actually with all other materials as well. We have a KPO (Kaizen Promotion Office), whose role it is to plan, execute and follow through on improvement events. This is given the full backing and involvement of senior management on site. Key benefits have been cost reduction, waste elimination, lead time reduction and improvement in delivery performance. Kaizen is also deployed in both customer and supplier sites.”

The result is a lean, fit and flexible system that can respond quickly to customer needs and it’s obviously working. By working in partnership with customers and suppliers, offering added value in logistics services, B3 is the only manufacturer and supplier of copper cables to have its products approved by BT (British Telecom) for use in BT networks.

A dynamic way forward is already mapped out

In December 2006, B3 acquired a second cable business, ABB (Ireland) Cable Company in Longford, Ireland and since the acquisition the Kaizen system has been launched there too. It is already being used to drive significant capacity increase within the factory, which serves to increase sales and provide backup to the UK business.

Mr. Ellis says the company will continue to improve and add to its use of advanced technology, as well continuing to use the Kaizen lean production and supply systems in its drive for innovation and expansion.

In terms of Executive and strategic management, the organization will change as further acquisitions are made – B3 has a strategic organization plan which anticipates future requirements and shortfalls. We regularly review this and ensure that we succession plan for the future. He says: “As the businesses are generally free-standing, we have local management teams in place, with additional business and commercial organization which spans the different regions.” In Ireland, in terms of production processes, plant and people, he says: “We have been reviewing and changing the focus within the plant so that we can present a more competitive offer to the market and to grow where the opportunity exists. These changes are being made currently and already we are seeing higher volumes in the key areas. We will continue to review Make or Buy – outsourcing is important to us in certain product groupings.”

The company is open to using the most modern technology and work methods (including call and video conferencing) in every aspect of the business from office back-up and supply chains. “We utilize Baan business software across both businesses, coupled with other, more specific software,” says Mr. Ellis.

On plans for the future he says: “B3 plans to grow in its chosen markets, organically where it makes sense to do so and through further acquisition of complementary businesses – for example in Eastern Europe and the Far East. Organic growth will be supported through extension of our product range and further development of our service proposition to bring about improvement and cost reduction with the supply chain. This has been applied successfully to the UK business and will be extended into other B3 businesses.”

Pull Quotes

“We have strong development and training processes which have been developed in the UK business and we intend to adapt these elsewhere in our business”

“We continue to evaluate existing supply chains and develop new ones with this key material, but actually with all other materials as well. We have a KPO (Kaizen Promotion Office), whose role it is to plan, execute and follow through on improvement events”

“B3 plans to grow in its chosen markets, organically where it makes sense to do so and through further acquisition of complementary businesses – for example in Eastern Europe and the Far East”