Nick Coope Talks To Geoff Myers About The Closure Of DDA UK Limited

Online, July 14, 2011 (Newswire.com) - Developers and manufactures of some of the world's most advanced automation equipment headed by Nick Coope and once the most prominent engineering company in Devon, the company has been forced to close its doors for the last time due to low cost economies in the Far East and Eastern Europe.

Paignton is renowned as a gentle seaside resort rather than for its high tech credentials, but the DDA engineering facility was the spearhead operation of an £14 million investment made in the UK.

The central focus of the work based in Paignton was the development, design and installation of precise controls of heavy duty robotic gantries." He said. "And these gantries are used in the controlled scheduling and carrying of heavy trays of capacitor anodes to both static and moving targets, comprising of dipping stations, conveyors and dryers".

Capacitors are one of the fundamental passive components found in the majority electronic circuits and there are many different varieties but all carrying out the role of storing and filtering energy.

"Open the back of a mobile phone and you'll found dozens", explained Nick Coope. "Today these devices are stuck directly onto the surface of the printed circuit boards, unlike in the olden days when they were big bulky things soldered on by hand."

Today it's all about miniaturization, getting larger amounts of a capacitance into a smaller case size. DDA's unique manufacturing process took the ideas from the semi-conductor industry and cross fertilized these methods into a completely new idea. "We picked up some assembly and processing techniques and applied them to our own designs," Coope explained.

The DDA Facility evolved gradually over the years and developed some of the world's most advanced automation and processes to enable this complex manufacture to take place.

Nick Coope stated. "At DDA we designed high value, high speed automation process lines in order for our customers to facilitate economic, reliable and quality production of products. Ultimately leading to reduction in production process costs. We also provided a high service element with 24 hour technical support."

But it's ironical that DDA, providers of the 'nuts and bolts' to aid their customers to reduce costs and remain competitive, now find themselves at the sharp end of the labour cost issue.

"To keep our position in the market place we adopted lean manufacturing techniques. Basically looking at every process in every function of our business and eliminating anything that added unnecessary waste."

He continued. "At DDA we asked if we could compete with the low cost of Eastern Europe and the Far East - but regrettably after considering all the options we had no alternative but to close."

He was keen to stress. "Now if you're shuffling boxes around or manufacturing a series of products then lean techniques have benefits." Coope explained. "With stock turns, reduced warehouse space, higher turnaround times etc, but if your designing and manufacturing 'one off' machinery then lean techniques or BPR models have little place in the business".

He continued "It's all down to hourly rate. You simply cannot compete with a firm who is charging less than £1.0 per hour for their labour force. I don't think you have to be a rocket scientist to understand that."

"I dealt directly with some of our clients for telecoms components. From a design point of view it was imperative that we appreciated where their business was likely to be in two or three year's time".

"Our primary function was to innovate, manufacture and supply, but we also needed to provide support services which will enabled our clients to fully address market issues they may be facing."

Nick Coope was keen to stress this pro-active approach, getting involved at the heart of the conceptual stage, which he believed to be of huge importance.

"By focusing on designing in control systems to simplify this process we would not only drive out the risk and cost but also take time out of the whole delivery". But also commented. "But these best practices don't work if what you do is only to differentiate on cost. It's only a matter of time before the competition tries to get your business."

He explained that DDA were innovators so believed that they could win the business that way.

He went on to say. "I believe there have been three stages in the industrial buying evolution....

Firstly, buyers looked for a good quality product at the best price with no concern of where it was made.

Second, they looked for poor quality products selling at cheaper prices bought from overseas.

Thirdly, they now look for a good quality product at cheaper prices bought from overseas."

To survive today you have to be competitive in a global market."
At the end of the day it's all about what you're manufacturing.

If your developing and producing say software where production cost are very little you have plenty of wiggle room to maneuver.

But if you're developing and producing plant and equipment where manufacturing costs are high you've got big problems.

No matter how efficient or which lean technique you use.

Nick Coope expressed that public service jobs in the UK will not solve the countries employment needs. "Were told that innovation is the way forward. But innovation can only go so far".

He added. "The 10,000 tonne innovators fell out of favour long ago now it's now the turn of the 100 tonne innovator to scrap for survival. And eventually it will be the turn of the 1 tonne innovator.

So I guess if you're producing less than 1 tonne of output you're ok for a while!"

DDA is proud of its achievements, was aggressive at moving their product range forward. Constantly developing new ideas and machinery as the market evolved.

So what's next.

I asked Nick Coope what holds for future.

"I'm looking to get involved with writing in some way and to see if a market exists where costs are fractional and the margins massive. I'll let you know if I find such a place!"