Paper on Advanced Development


	Paper circulated on Advanced Development
	OCRd Copy
	ADVANCED DEVELOPMENT BASIS OF OPERATION AND TENTATIVE PROGRAMME In the past few months there have been exchanges of views by personal discussion and memoranda between the Chief Engineer and Managing Director, and between the Chief Engineer and Chief of Advanced Development, on the organization and programme of Advanced Development. Two recent memoranda from the Managing Director to the Chief Engineer call for (a) The circulation of the Terms of Reference of the Chief of Advanced Development, and (b) A plan covering build up of staff and running costs together with a technical programme over the next twelve months, and a less definite guide over a further period of twelve months. The following report aims at consolidating all discussions held so far and at meeting the Managing Director's suggestions. If adopted it will serve as the basis of operation until December 1963 when, it is suggested, a further review should take place. 1. Title For the reasons outlined in my memo to Mr. E. Garthwaite of the 26th July 1962, it is desirable to change the title to "Research and Advanced Development Division". It is proposed to give effect to this recommendation internally but in view of difficulties arising outside the Company, care will be exercised in using the expanded title in external communications. 2. Activities of the Research and Advanced Development Division It is proposed to divide the activities of the Division into two categories : (a) Research This will consist of objective basic research, applied research and exploratory work (i.e. work which is not at the stage where definite proposals can be made). (b) Advanced Development This will take the form of study projects that should ultimately lead to the development of an instrument or the construction of a piece of apparatus that will improve some aspect or other of the Company's operation. It is proposed that Research should account for some 70% of the existing budget allocation and that the remaining 30% should be a running budget for Advanced Development. The latter could, however, be supplemented by making further funds available for specific Advanced Development projects. 2 The Research function should be under the control of Chief of Research and Advanced Development, who will keep the Chief Engineer or other interested parties informed as appropriate. An Advanced Development project aimed at producing, ultimately, a proprietary instrument should be authorised jointly by the Chief of Research and Advanced Development and the Chief Engineer, with the knowledge of the P.P.C. It is proposed to institute an Advanced Development Proposal form (draft attached) which will come before the P.P.C. A. proposal intended to lead on to the development of a proprietary instrument would be authorised by the Chief Engineer and Chief of Research and Advanced Development. The Managing Director and Secretary/Accountant could also be signatories if this is thought desirable. 3. Budget Because of the different nature of activities there will be no constant relationship item for item between spend in R. & A.D. and spend in Engineering. It is desirable (see my memo of 26th July) for R. & A.D. to have its own budget. The following is an analysis on which such a budget may be based :- 3.1. Technical Overheads A. Some overheads will be incurred by virtue of the services obtained from the Engineering Department by the R. & A.D. Division. These are listed together with details of the basis of assessment in Appendix A. B. Overheads for facilities in Departments other than Engineering can also be related to the Engineering budget by appropriate factors and will presumably be directly credited to each Department concerned. A similar arrangement is applioable to Company and Group overheads. A breakdown of such overheads is given in Appendix B. C. A third category of budget items is necessary to cover those headings which cannot be related on any rational basis to Engineering spend, but rather must be worked out independently. These are listed and detailed in Appendix C. 3.2. Other budget items As a basis for budgeting labour and materials and other charges in both semi-direct (corresponding to Research) and direct (Advanced Development) categories : (a) We may use the 70%/30% ratio for the semi-direct/direct relationship and (b) a link can be established between labour and material by assuming that each £1000 labour will consume £200 naterial and £200 equipment for investigation. 3.3. Budget Bringing together all the budget items, we have an annual estimated rate at December 1963 on the basis of a 1% Company turnover and build-up to estimated strength. Materials and other charges (Advanced Development) £1,200 " " (Research) £2,800 Labour (Advanced Development) £3,000 " (Research) £7,000 Technical Overheads A. £2,103) B. £6,775) approx. £14,000 C. £5,075) £28,000 3 Note (a) This does not take account of capital requirements for new equipment. (b) Particularly expensive equipment or materials for specific Advancd Development projects. (c) It is assumed that some work outside the Company - e.g. by a Consultant or Research Organization could come out of this budget. 4. Build-up of staff It is hoped that staff can be engaged according to the following programme :- Graduate Staff Assistant Staff December 1962 2 + 1 trainee 1 July 1963 4 or 5 2 December 1963 6 2 or 3 These numbers do not include the Chief of R. & A.D. 5. Build-up of spending 8-13 1-7 8-13 1962 1963 1963 £ £ £ Materials and other charges (Advanced. Development) 200 400 540 Materials and other charges - semi-direct (Research) 465 930 1260 Labour (Advanced Development) 500 1000 1350 Labour semi-direct (Research) 1165 2330 3150 Technical Overheads 2335 4670 6300 £4,665 £9,330 £12,600 6. Programme for Research and Advanced Development The programme will depend to a great extent on the previous experiencle of the staff obtained, and the date on which they join the Division. As a guide, the following tentative programme is given. These will all be started in the Research phase and the date by which they may proceed to Advanced Development, if applicable, is given below :- Sampling Waveform Generator December 1962 Digital Readout C.R.O. " " Stability of Varactor Diodes --- 300 Mc/s Counter July 1963 Frequency Synthesiser " " Automatic Bridges December 1963 4 Terms of Reference - for circulation if' approved CHIEF OF RESEARCH AND ADVANCED DEVELOPMENT To establish and maintain a Research and Advanced Development Division within an approved budget with the basic aim of putting M.I. ahead of competitors in the marketing of profitable instruments based on new ideas, techniques, devices etc. Some means to this end are :- 1 To keep informed of developments in basic principles, characteristics and applications of devices, techniques, instruments etc., by extracting information from journals, keeping in contact with Government, educational, professional and industrial establishments, attending lectures, symposia, conferences etc. 2. To initiate and supervise study projects both within the Company and outside (e.g. University or C.A.T.) to determine the applicability of new devices, techniques, systems etc. to M.I. products, with the emphasis on the long-term interests of the Company rather than the short-term. 3. To disseminate the information and the results of the study projects in the most appropriate way and to assess and advise on the likely long-term effects on Company policy. 4. To gather and where possible apply any information available on the subject of creativity in an industrial environment and to increase the flow of ideas, innovations and inventions by personal contributions and the stimulation of others. 5. To consider those aspects of the initial and revision training of engineers that have a direct bearing on the basic aim and collaborate with the Chief Engineer in taking action as appropriate. H.V. BECK. 6.3.62. 5 Appendix A Technical Overheads due to facilities and services obtained from the Engineering Department (a) Where the overhead is concerned with constructing hardware, our requirements are likely to be one half of those of Engineering Department per unit of budget. With the R. & A.D. budget at 10% of the Engineering budget, we would thus be accountable for 5% of the overheads. (b) We would probably require the services of the chemist at an equal rate and the librarian at a greater rate - 10% and 15% respectively. (c) R. & A.D. would like to use Engineering Department test equipment at say a 10% rate. (d) We would not wish to use many of the services provided for the design/production role e.g. progress, standardisation, inspection. (e) R. & A.D. would make their own arrangements with Purchasing and Goods inwards Departments for the procurement of special materials and equipment. (f) It would be administratively convenient to obtain some ancillary services from Engineering Department at rates which vary from item to item, e.g. cleaning 5%, office equipment maintenance 10%. On the above basis, the annual rate of contribution by Advanced Development towards the Engineering Department overheads would be as follows :- Charge Estimated CODE DESCRIPTION (relative to Annual Rate Eng. budget) December 1963 % £ 91112 Small Tools 5 50 1131 Misc.Shop Mat. 5 75 1411 Superintendent 5 66 1431 Foreman 5 133 1441 Chargehands 5 393 3412 Photography 5 125 3413 Chemist 10 135 3414 Library 15 165 3415 Clerical 5 160 3417 Drawing Office 5 50 3419 Print Room 5 100 94111 Plant 5 25 4141 Fixtures & Fittings 5 25 4.151 Test Equipment 10 330 4161 Office Equipment 10 80 4181 Cleaning 5 151 96671 Technical Publications 10 40 £2130 Note (a) Some of these figures can be revised in the light of a year or two of operation. (b) The figures are based on the 1962 Engineering Budget. 6 Appendix B Technical Overheads for facilities obtained from outside Engineering Department DESCRIPTION Charge Estimated Annual Value (relative to Eng. budget) December 1963 % £ Buying 5 199 Storekeeping 5 65 Goods Receiving 5 30 Stores Records 5 30 Grounds 10 75 Eleotricity 5 62 Gas 5 8 Water 5 4 Steam 5 33 N.D. & P. 10 50 National Insurance 10 57 Employer Liability 10 6 Welfare 10 55 Medical 10 30 Canteen 10 220 Sundry Welfare 10 89 Head Office Charges 10 1375 Local Management 10 1365 Works Accounts 5 250 Stationery 5 320 Telephone 5 97 Depreciation 5 694 Rates 5 99 Fixed Assets Insurance 10 21 Security 10 340 Transport 5 31 Subs and Donations 10 160 Insurance 10 20 Service Fee 10 910 Royalties 10 80 £6775 NOTE (a) Some of these figures can be revised in the light of a year or two of operation. (b) The figures are based on the 1962 Engineering Budget. 7 Appendix C - Specific R. & A.D. budget items Estimated annual rate December 1963 Laboratory equipment (running allowance) 1000 Course expenses (3 courses p.a. @ £50) 150 Travel and entertainment 2 U.S.A. visits £750) 2 European visits £125) 1075 10 U.K. visits with hotel expenses £100) 20 Miscellaneous U.K. visits £100) Reserve for bonus 1000 Clerical Assistance 600 Professional charges 150 Technical Publications 100 Contingency 1000 £5075 8 MARCONI INSTRUMENTS LIMITED PROJECT REF. AD ISSUE DATE PROPOSAL FOR ADVANCED DEVELOPMENT (Leading to Proprietary Instrument Development) COMPANY CONFIDENTIAL Reason for proposal Patent situation Estimated Cost ..................... man/weeks £ (Including overheads and basic materials) Special Requirements £ Total £ £ . . . . . . . . . . to be provided by R. & A.D., £ . . . . . . . . . by . . . . . . . . . . . . . . Target completion date . . . . . . . . . . . . . Authorised Chief of Research and Advanced Development ................................... Chief Engineer ................................... Completed ....................................
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