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Driving efficiency to offset market conditions

Location:Global

Division:IMI Critical Engineering

Date:24 March 2017

As highlighted in the Chief Executive’s Review on page 6, in many of our markets we are facing challenging trading conditions.

To ensure that we continue to be competitive and remain on the path to sustainable growth in our Critical Engineering division, we have undertaken a number of cost management initiatives and accelerated some of the improvement projects which were scheduled for implementation in the later phases of our five-year strategic plan. As part of the consolidation of our European manufacturing footprint we have created an engineering centre of excellence within IMI Z&J’s manufacturing plant in Düren, Germany. Using the new and improved R&D facilities within the centre, IMI Z&J has accelerated its new product pipeline and developed a number of lighter, more efficient and cost effective products.

Continuous improvement is embedded in our culture and we continue to work towards achieving world-class operational performance in all our businesses. During the year, across the whole of our Critical Engineering division, approximately 12,000 improvement actions have been undertaken.

As a result, our lean score assessments have improved year-on-year and we are continuing to reduce our operating costs, with an overarching objective of enhancing our market competitiveness. During 2016, our operational infrastructure was further strengthened. New IT systems were installed in more of our factories, including our plants in Sweden, Japan, India and Korea, and the Obeya project management system which significantly enhances our project management capabilities, is now operating in Critical Engineering’s major plants around the world.