Final Annual Report 2015 for WEB

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BUSINESS EXCELLENCE DIVISION
Precision Components’
road to diversification
Precision Components is a leading Australian specialist in the development,
manufacture and supply of specialised press metal, fabricated components and
assembly solutions across a wide range of industries. Like many manufacturers
supplying the Australian automotive industry, Precision Components has had to
evolve to survive and find new revenue streams.
In 2007, Precision set about reinventing itself, investing heavily in automation,
large stamping capacity and management development. It was during this
transformational period, that Precision began working with ASEA on a number
of improvement projects. Initially, projects focused on developing internal
capabilities including; purchasing and logistics, human resources and upskilling
the workforce. As the organisational platform for growth improved, ASEA’s
support shifted to the development of Precision’s external capabilities,
including marketing and diversification projects.
>> Business improvement journey
from internal efficiency to new
markets
>> Ongoing investment in
automation and skills
>> Dedicated team for identifying
diversification opportunities
The road to diversification
One of the outcomes of the ASEA program was Precision’s decision to dedicate
four employees to assess a whole range of diversification opportunities based
on key competencies. As a result, the company is now working on a number
of priority projects including Heliostats SA.
Heliostats are mirrors that track and reflect the sun’s thermal energy onto a
central receiver – the energy is then converted into electricity. Heliostats and
their high-tech components are fabricated using laser mapping and steel
cutting technology.
Precision’s diversification team identified an opportunity to reposition the
company as an advanced manufacturer of heliostats using the skills developed
in the automotive industry. “As we learnt about heliostats and the concentrated
solar power market, we decided that there was enough in it to start a business
– Heliostat SA was born,” says Managing Director Darrin Spinks. Precision
Components now finds itself collaborating with leading Australian research
organisations including the University of South Australia and CSIRO and has
its first export order to Japan.
Through his experiences Darrin acknowledges the difficulties companies are
facing. “What’s become clear is that many other organisations in the automotive
sector are battling the same issues that we are facing, particularly maintaining
morale and performance over the next two years as the automotive business
winds-up.”
“ASEA helped us align our
existing skills and capabilities
with potential new markets
where we could be competitive.
Across the business, we’re now
seeing the disciplines gained
through our days in automotive
being transferred into totally
new segments.”
By partnering with ASEA, Precision has been able to focus on project
preparation and their people are ready for new, non-automotive activities.
Precision has successfully completed seven improvement projects with ASEA’s
support and direction and the company is focused and well on the way to a
successful diversified future.
CSIRO’s Solar thermal test facility in Newcastle Australia. Photo courtesy of CSIRO.
32 >>> ACCELERATING INTO THE FUTURE
AUTOCRC PROGRESS REPORT 2014 – 2015 >>> 33