VMSL

Source: Supply Chain Digital

Date :26/07/2007 17:20:02

How VMSL keeps road and rail traffic flowing safely across the planet

We’re all used to those LED signs that flash messages to us on motorways, tell us to slow down in urban areas, and keep the railway signalling system going. They’re all the products of a dynamic company in Hebburn, Tyne and Wear, that’s been going for a quarter of a century. Alison Withers spoke to Deputy Chairman Roger Stainforth

Written by Alison Withers & Produced by Paul Radbourne

Variable Message Signs Ltd has been working with the UK’s Highways Agency for more than 20 years and for the last eight has been supplying the Agency with its ground-breaking technology to provide driver information systems combining sophisticated LED technology with advanced electronics and software. But VMSL doesn’t only supply the UK.

Its signs are also used in Holland, Greece, Ireland, Australia and Portugal, and in April the company won a contract from New Zealand’s equivalent of the Highways Agency. Roger Stainforth, the company’s deputy chairman has been with VMSL for 19 years. Four years ago he was part of a management buy-out of the company from former owner, Rolls-Royce plc. He is delighted with the company’s development.

Lean and fit production processes and cutting edge technology

VMSL was one of the first companies in the North East to install the Kaizen lean and fit systems that are essential to operating a flow line production system. The company continues to hold Kaizen events as part of its efforts to maintain peak efficiency. In addition to its own in-house monitoring group twice a year, “mentors” from the nearby Nissan factory come in, look at and advise on any new initiatives that might be useful for VMSL’s operation.

It’s one of only three companies approved by the Highways Agency to provide electronic motorway signs and offers a complete service from the metal enclosures for the signs right through to the electronics inside, installing the products on site and maintaining them once they’re operating.

In house systems are state of the art so work can be tailored to clients’ specific requirements and the company operates three distinct business divisions: Highways, Urban and Rail. It has state-of-the-art engineering and optical labs and a modern factory all available in-house. All products conform to ISO and European quality standards.

At the time of the buy-out there were 46 employees. Now there are 75 with more being recruited. Having the right in-house expertise is crucial to maintaining a leading position. “At the moment we have around 30 people who are at least degree level or professionally qualified in particular fields (mostly engineering and commercial),” says Stainforth. “Another 30 are on assembly, and are time-served apprenticeships, with City and Guilds, ONC or HNC.” Another 15 are semi-skilled but certificated for their work on the site.

The company has good links with a local school and takes pupils on their work experience weeks. It recruits two or three apprentices a year for the scheme it set up five years ago, as it became clear that many of the current workforce were nearing retirement age, though, Stainforth says, some have chosen to continue working but with reduced hours. VMSL currently has seven apprentices.

Because of the length of contracts the company does not need to employ complex back-up tracking systems but Stainforth says they have the technology they need to effectively do the job.

Expanding at home and abroad

VMSL has won two new contracts this year. It was awarded a three year contract worth £1.6 million with Transit New Zealand (the NZ equivalent of the UK’s Highways Agency) to supply a range of signs for the country’s rural and trunk networks on both North and South islands. Its target is to deliver 22 signs by the end of this year.

Stainforth says: “This contract win is particularly pleasing because it contributes to the growing export side of the business.” The company works through New Zealand Agents ASL, in Auckland, whose staff are regularly sent to Tyneside for specialist training.

Most recently, at the start of this year VMSL won a part contract worth £185 million from the UK’s Highways Agency to develop and prototype the next generation of three types of electronic variable message signs providing information for drivers on road conditions ahead.

While current IT systems are robust enough to cope with the growth, says Stainforth, VMSL does have to deal with ensuring a supply of qualified people for the future and with a restructuring at senior management level because of its massive growth since the buy-out.

It has been recruiting to meet the increased workflow but, like many employers, Stainforth says finding qualified electrical and software engineers has taken longer than he would have expected because there is a global skill shortage: “We have recruited those that we needed but it wasn’t easy.”

Even so, in an area where unemployment has traditionally been high, the expansion has to be good news for VMSL and for its suppliers and sub contractors, many of whom are within 25 miles of the company. It’s looking to add another eight to ten people to the assembly part of the business also in 2008.

With an eye to the future, VMSL has well-established links to universities in Paisley, Glasgow, and currently has a postgraduate working with them primarily on optical design. It also has links with Newcastle upon Tyne University’s transport department and Northumbria University’s engineering department. The idea, says Stainforth is to identify and work with undergraduates with a view to themjoining the company later. It also spends a lot of money on in-house training of existing staff: “In the past six to eight months the engineering team has been almost constantly on training courses.”

It’s become clear that the next major issue is changes in culture and working practiceand in the next four months the business structure is being reviewed and changes implemented.

He says: “It could well include more board members and senior managers. There are areas of expertise that we probably need to bring into the business.”

One more item on the agenda is that this year will be the last of its current Queen’s Award for Enterprise and Innovation, awarded in 2002. VMSL will submit a new application in 2008. It’s going to be a busy year!