Thank you for your letter of 15 July and the invitation to submit my views on the Newcastle University Engineering Design Centre and the Regional Centre for Innovation in Engineering Design to the Science and Technology Committee.

1.  THE ENGINEERING DESIGN CENTRE

  British Nuclear Fuels has, for some years, been a member of the Newcastle University Engineering Design Centre which specialises in research into the design of "made to order" products and plants. Because of the nature of BNFL's business, every process plant that it requires to carry out its business and every new facility which is needed to recover and stabilise the historical wastes is a "made to order" plant.

  A major challenge in the design of made to order plants is that there is limited accumulated experience from past plants and this makes it difficult for the design team who are nonetheless expected to achieve the optimum balance between often conflicting objectives such as capital cost, availability, lifetime cost, process performance, safety and environmental impact etc. From its inception, the Engineering Design Centre recognised this challenge and the increasing complexity of design decision making. The development of tools and techniques to facilitate design decision making when faced with a large number of apparently conflicting criteria and to guide designers to an optimum solution has been a key part of the EDC's research programme.

  Much design, even since the adoption of CAD techniques remains, of necessity, sequential, ie the work of one engineering discipline tends to follow sequentially after the work of another is completed. Many organisations such as BNFL have recognised the potential benefits which would be gained from the development of an integrated design capability which would enable the consequences of any design decision to be instantly seen and consequent problems avoided, thereby reducing the time, rework, cost, and risk in the design process.

  A major research initiative within the EDC has been and remains the development of the ability to integrate all aspects of design. This programme allied to the multiple criteria decision making tools and the specific design modules such as spatial engineering, design for upgradability and design to minimise environmental impact and cost which are being developed in the EDC makes its work, in my opinion, world class. The list of major UK companies, including British Aerospace, British Gas, Amerada Hess, Shell Offshore, Kvaerner Water, AMEC, GEC Marine, Vosper Thorneycroft British Steel and Seimens Power who are members of the EDC is testimony to the high regard in which the work of the EDC is held.

  Whilst companies such as BNFL will continue to invest in appropriate state of the art design software and hardware, commercial and programme pressures make it almost impossible for them to initiate and sustain the more visionary fundamental research and development that the EDC has specialised in and it is this complement to industry that makes the EDC so valuable.

2.  THE REGIONAL CENTRE FOR INNOVATION IN ENGINEERING DESIGN

  The success of the Newcastle Engineering Design Centre led to the formation of the Regional Centre which as its name implies is regionally rather than nationally focused and has given very valuable support to a large number of small and medium sized companies in the North-East of England.

  Small companies, particularly those in the process of organic growth, usually lack the technical and financial resources to make quantum technological steps in design and manufacturing without assistance. They certainly cannot afford to make the wrong decision when investing in high technology for the future.

  The Newcastle RCID has been very successful in assisting small local companies in these areas and could well be a role model for other regions. There are some aspects of its operation, philosophy and history which should be taken into account when considering setting up other Regional Centres:

—  The operational model adopted within the RCID is based upon the experience gained in operating the highly successful EDC over a 10 year period, ie, inter alia a very strong focus on industry's needs—Customer Focus.

—  One primary reason for the success of the RCID is the fact that it is seen by the Region's decision makers as an important part of the Region's Innovation and Technology Strategy.

—  A key factor in the success of the RCID is the commitment of a group of leading industrialists in the Region. These individuals were selected with great care during the formative stages which led to the RCID being set up.

—  By involving all of the Universities in the Region in the collaborative venture, Industry sees the RCID as truly Regional and not simply a Newcastle University initiative.

—  Whilst much of the work of the RCID is near market, as it must be if it is to benefit SME companies on an acceptable timescale, it does undertake a certain amount of more fundamental research work. These projects are often based upon output from the EDC programmes. This is, in effect, a classic example of the Supply Chain model.

—  The support of the Region's Agencies is a very significant factor in the success of the RCID. For example the RCID has two visiting professors sponsored by the Tyneside TEC and the Tyne and Wear Development Corporation, their focus being the activities of SME companies.

—  The involvement of the TECs and Business Link is important. The RCID has used these networks to encourage SME companies to participate and the Northumberland Business Link Counsellor is a member of the RCID staff and is based in the Centre.

—  The RCID plays an important role by collaborating with local Agencies when they are negotiating with potential inward investors who see the research and development support as very valuable.

—  The RCID is a focal point in the region for a number of national initiatives. For example the Regional foresight programme was, until recently, managed from the Centre. This in turn facilitated the engagement of the SME community with long term strategic research and development. Partnerships were formed between the large companies which fund the EDC and the Region's SME companies.

—  The RCID also takes a very great interest in the development of people, believing deeply that technological developments and the associated change cannot be achieved without simultaneously addressing the development of personnel. The RCID holds a National Training Award.

  I hope that these facts and comments will be of interest and of use to the Science and Technology Committee in their inquiry into Engineering and Physical Sciences based Innovation.

July 1998