Qualiturn tells Business and Enterprise Minister Mark Prisk how it is

It's not often that politicians opt to visit small engineering companies, even less so a highly placed one such as Business and Enterprise Minister Mark Prisk, who went to see 20+ employee subcontractor Qualiturn Products in January. But Mr Prisk, Conservative MP for Hertford and Stortford, and who claims the leading manufacturer and supplier of precision turned parts as within his constituency, spent most of Thursday, 20 January learning about the rewards and challenges of SMEs (small and medium sized enterprises) in the precision turned parts manufacturing sector. Image: as Business and Enterprise Minister Mark Prisk, left, talks engineering issues with Qualiturn's Nick Groom Nick Groom, managing director of subcontractor Qualiturn Products, located on the Mead Lane Industrial Estate in Hertford, was chosen to provide the minister with an insight into this sector of British manufacturing. In fact, it was Mr Prisk's fourth day working with small businesses around the country. SMEs such as Qualiturn are the backbone of the economy, accounting for 99% of all UK enterprise and 50% of private sector employment. So it is for this reason, says the Department for Business, Innovation and Skills, that it is keen to gain in-depth knowledge on the day-to-day experiences of companies like Qualiturn, and learn how government can help such firms to prosper and grow. Mr Prisk spent nearly the whole day with Mr Groom, with topics under discussion ranging from capital allowances, business rates and the extension of the Enterprise Finance Guarantee facility, through to the relative merits of banking practices in different countries and the threat of overseas competition, and on to the greater role that colleges could play in nurturing apprentices. Following his day at the subcontractor's works, Mr Prisk commented: "My day working with Qualiturn Products has given me more invaluable experience and has emphasised the fantastic work going on at small businesses all over the country. "This month, I set out a number of ways the Government will create the right long-term environment to help many more people start and grow their businesses. Today has underlined why this is so important. "Spending the day with one of Britain's hard working small companies has left me even more convinced that together we can make the coming years the most entrepreneurial in our history." In response, Mr Groom said: "We are delighted to welcome Mark Prisk in his capacities as both Business and Enterprise Minister, and our local MP. "Qualiturn doubled in size at the end of last year, in terms of factory space, and it is pleasing that Mr Prisk has been able to see the progress we have made since he opened our current premises six years ago. "Following difficult trading in 2009, we surged ahead last year to our highest ever turnover, despite the cost of nickel- and copper-based raw materials being at a record high. "Now that government seems to be taking a real interest in the factors that promote and curtail businesses like ours, hopefully we can look forward to a renaissance in UK manufacturing in the years ahead." Image: Qualiturn is a regular investor in modern technology, such as this Star sliding-head lathe Qualiturn Products expanded its premises at the end of last year, with a doubling of floor space following expansion into an adjacent unit, and subsequently has increased the number of CNC lathes from 18 to 20, following the purchase of a Star SR-32J sliding-head mill-turn centre (01332 864455) and a Miyano ABX-51SY fixed-headstock lathe (01384 489500). Until this expansion, two Miyano lathes, 16 Star sliders, automated storage systems, and a range of metrology and other equipment filled the shopfloor. So every time a new machine came in, one of the older models had to be sold. "Expansion of our business can now proceed for the rest of the decade, unhindered by lack of space, dictated only by demand and the prevailing strength of UK manufacturing," explains Mr Groom. The reference to the next decade is, perhaps, particularly apposite, since the Government unveiled its 'Manufacturing Growth Review' in January, in which its stated broad aims for the next decade are, to: grow manufacturing in the UK; make the UK Europe's leading exporter of high value goods and related services; and increase the proportion of the workforce seeking, and capable of, a career in manufacturing. Mr Groom continues: "Last year (2010) proved to be our best ever, in terms of turnover, especially the last three months, during which business activity was higher than we have ever witnessed since Qualiturn was established in 1973. Image: Automation, such as this Hydrafeed Rota-Rack, keeps Qualiturn's turning machines turning "In addition to a phased programme of machine tool acquisition, we will be using our extra space to reorganise flow of material and work through the shop, from goods inward to despatch. This will be underpinned by our existing PSL Datatrack production management system (08456 345932 – see also box item, page 19) and our largely paperless working procedures." Qualiturn was a good example for Mr Prisk to choose; it has a considerable history of investment to increase capacity and improve efficiency over recent years, reduced somewhat by the recent downturn, of course. But this strategy has seen the company invest £320,000 in 2008, installing a Star SV-32 sliding-head lathe to replace a 9-year-old model, high pressure coolant (HPC) on this and another lathe, and an automated storage system for bar stock and tools. And that storage system was additional to a larger Couzens Storage Solutions unit (01442 250010) for automatically storing and retrieving bar stock up to 6.5 m long. The same year saw the company install a Hydrafeed Rota-Rack rotary part accumulator (01908 376331) to improve the quality of components manufactured on its turning centres, by preventing parts from being marked when being dropped into collection bins. This problem is exacerbated, due to the unmanned running regime that the company operates. And in June 2009, the company installed CADCAM software from OneCNC (www.onecnc.net) that allows 3D data supplied by customers to be translated and converted into NC code for running on the company's Star sliding-head CNC lathes and Miyano fixed-head mill-turn centres. Increasing part complexity was the driver here. Qualiturn Products is clearly already succeeding, even before government help is aimed at manufacturing; it will be good to see it and others prosper further when that help kicks in. Box item Calculated costs When subcontractors prepare quotations for potential customers, one of the most critical elements is the calculation of all costs, including hourly rates. Getting these figures correct and ensuring profitability means that the rates of assets, such as machines and personnel, are fully covered. PSL DataTrack says it is regularly asked: "What does an hourly rate consist of?" As a result, the company published its 'Guide to Standard Costs'. The simple guide includes sections on overheads, equipment and labour costs, hourly rates and their application, as well as a valuable calculation template. PSL's DataTrack software is used extensively throughout the engineering subcontract industry and other manufacturing sectors to provide companies with close control over production, with all the information needed for maximum efficiency and profitability. The company therefore has a wealth of experience in cost calculations. All this experience is transferred into the guide, which is available from PSL Datatrack on 08456 345932. First published in Machinery, March 2011