29
Strategic Review
Performance Review
Corporate Governance
Financial Statements
Introduction
Annual Report and Accounts 2014
During the year we introduced a new
benchmarking process to assess
the operational performance of every
manufacturing and major warehousing
site in the Group against the ten key
areas of lean. A world-class operational
performance score is considered to
be 85% or more. None of our facilities
scored close to this figure in the first
assessment. The highest score was
57% and the average across the Group
was 31%. Improvement plans have been
put in place and each of the sites will be
reviewed every six months. Following
the latest review all sites had improved
their operational performance and the
Group average had improved to 46%.
We aim to be world-class by 2018 and
will update progress towards this goal
in each future Annual Report. For more
information about the importance of lean
to our strategy, please go to pages 16
to 19.
The health and safety of all of our
employees remains paramount.
We measure our progress in this
area by tracking our lost time accident
rate (LTAs). In 2014 our >1 day rate
improved by 15% relative to 2013.
In previous years we reported our
>3 day LTA performance but, as a
result of performance improvements
on the number and severity of accidents,
the >3 day metric is no longer a key
performance indicator and will no
longer be reported.
Health & Safety
Lost time accident rate
0.31
0.13
0.11
0.3
0.25
0.2
0.15
0.1
0.05
2012
2013
2014
Return on capital employed (ROCE) is
defined as segmental operating profit
divided by segmental operating assets.
In 2014 ROCE was 18.3% which
compares to 19.7% in 2013.
Return on capital employed
18.9%
19.7%
18.3%
20
15
10
5
2012
%
2013
2014
Lean score
100
75
50
25
%
[ ]%
First assessment
Second assessment
31%
46%
