UPDATED VERSION AS AT 9/1/92 -
NOT_INCLUDING_APPENDICES 2 a,b,c
-~-
Ilecommendationr, for Ory2ni-tion of BATCo R&D
A decision has been taken by the TSRT to terminate
the Group-funded
Fundamental research programme at FRC (with the
excep6on of a small set of
regulatory projects). The focus of the group's R&D
activity will now be
orientated to short term product superiority, B&W
with BATCF will become
centres of excellence on 'blended cigarettes* and
BATCo will major on
"Virginia* product superiority. This note
considers the course of action that
needs to be followed by BATCo to implcmnt the,se
changes.
Role of BATCo R&D
Following the brief given to the blended team,
whilst the bulk of R&D
activities should concentrate on the two-year
time-frarne, some effort should be
given to longer term projects (up to 4-year) to
ensure competifiveness.In
addition to its own need for patenting and library
facilities, BATCo continues
to have a Group role in coordinating Smoking &
Health research and in
Additives/related regulatory issues. With this in
mind the broad spr--ad of
activities to be encompassed in BATCo's facilities
should be:
Product Development
(a) Brand development
(b) Support to OpCos
(c) Sensory Testing
(d) Smoke Quality Research
2. Process Development (inc. sample man u facture,
customs, tobacco
stores)
3. Analysis/Testing
4. Environmental Projects
(a) Packaging
N Sidesvearn reduction
5. Regulatory Projects"
(a) Additives Guidance
(b) Biological Testing
6. Smoking and Health
(a) Development of policy
(b) ManaZement of contracts
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Technical Administration
(a) Programme/project planning
(b) Budgetary control
(c) External committees (TAC, Coresta, ISO etc)
(d) Q-T-P coordination
(e) Patent policy management
(0 Library/informadon
Steered and funded by CAC companies (inc BATCo)
Organisation
There is no benefit in retaining the distinction
between BTC and FRC given the
above role and outline programme for BATCo's
needs. It is therefore
proposed that the FRC is phased out and the
existing rather small BTC be
expanded to meet these needs. Furthermore, every
effort should be made to
integrate the new projects into the existing BTC
activities. Ile future
emphasis must be on Applied Research or
Development and any attempts to
pursue fundamental studies beyond their strict
point of application must be
avoided - this will be easier if staff am in
functional groups but work in a
matrix manner on projects in one establishment.
T"his has implications (see
later) for the new R&D building now being planned
on the Southampton Sit-,.
The propose-d structure for the new BTC is:
Manager of 8TC
I
Prod L.1 P-'" A-lysis En,i-.-tal Rtg.lt-y
D- DI-1 Tfig P-j"cb 1L$U4M
There are a few alternatives for the management of
the Centre; they depend
upon the future need for and role of Group R&D
Coordinator.
Option 1 (no Coordinator or function not covered
by BATCo):
It is recommended that the function of Manager of
BTC is integrated with that
of Head of R&D for BATCo. The job is based in
Southampton but one office
for R&D should be retained in Staines since the
manager and many of the staff
will be frequent visitors to Millbank. ne
appointment of a Technical
Administrator of the Centrz (planning, information
services, patents,QTP
coordination) is recommended. The Smoking & He2JIh
function
(R.E.T'homton/L.Rudge) is currently located at
Millbank but need not be in
future if the Head of R&D is located in
Southampton; in that case the S&H
function should also transftr to Southampton When
R.E.Thornion refires
(August 1993), depending upon who is appointed,
the Head of BTC should ~-n
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takeover the responsibility for S&H strategy with
L.Rudge monitoring
literature and managing external contracts.
The proposed structure for managing R&D under this
Option is therefore:
Chairman BATCo
Head or w4nnanagcr BTC
Mana'ger Tech.~W
S.okinVVealth Administrator
Product Process Aralysis Environmental ReguLtCWY*
Dev Dev Testing Issues Issues
(& smoke
quality)
Although the number of secdons reporting to the
Head looks high it should be
recognised that the linkage between Product
development and Marketing is
very strong in terms of project defini6on and
monitoring and, at Itast for the
first year, direct involven-w-rit in this side can
be relatively low.
Option 2(Coordinator based in BATCo)
Since this is not a full-time job it either has to
directly manage the new BTC
through local junior managers or cover a wider
span of technical activi6es for
BATCo eg. R&D, Leaf, PP&D and Technical Services.
This Option would
be:
Chairman BATCo
I
Group Co-ordinator R&WHead or R&D/Technology BATCo
Manager RTC Manager Manager Mamger
Lt2f PPD Tech Services
Departmental Manager Technical
Managers SmokingMealth Administrator
Option 3 variant,
An altemative additional role for the Coordinator
is the Group responsibility
for scieriffic aspects of Smoking & Health, a role
currently undertaken by
R.E.Thornton but who will retire in August 1993.
This Option would be:
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Chairman BATCo
I
Group Coordinator R&D & Smoking & Heal(h
/Head or R&D BATCo
Manager BTC Manager
SmokingtHealth
Technical Information
Administrator Scientist
Pr.J.d Process An.~Iysis E-AroInments.1 RV&lory
Dev Der Testing bsues Issues
(& smoke
quality)
Staffing requirementt
ne proposed establishment for the new BTC is
110.6, which although high in
relation to the former 64, includes an
establishment for Patents (4 including
secretary) and Corporate R&D (4 including
secre-tary) which hitherto had been
treated separately. The true increase emanating
from the break-up of FRC is
32.6 ( plus 10 who remain on the approved
regulatory projects to be funded by
CACs).
Establishment New Establishment Transfers/ Near
(as at 30.11.91) Leavers Ret.
BTC 64 60 4 1
Patents 4 4
Corp R&D 7 4 3 1
FRC 48.6
------- 42.6 6 2
123.6 ------
110.6 ----
13 ----
4
Total after
Ne2r Rets. ID6.6
The BTC also depends on 6 temporary staff to meet
its programme and this
requirement will not change. Currently the two
Centres use an additional 12
staff from MSD and Administration in order to
function and this may be
expected to continue.
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For comparison purposes it should be noted that
BATCF has an R&D staff
(excluding Process Development but including
Quality) of 103 and B&W have
an R&D complement of approximately 150.
The detailed distribution of personnel in the new
BTC is shown in Appendix 1.
Space ReqviTernerim
It is recommended that we work to an overall
objective of housing all future
BATCo R&D staff in the new building which is
planned for the north-east
corner of the Southampton site. To date planning
permission has been granted
for a three storey laboratory/office block
attached to a development hall. This
is based on providing space for PSU (Technical
Services, PP&D and Leaf) and
for the original BTC. In view of the proposed
changes in R&D an extension
has been designed, the purpose of which is to
house the additional staff for the
BTC, the Personnel and Administrative services
staff (18.4), Patents (4), and
Corporate R&D staff (4). On planning grounds we
are advised that this
extension can only be on two floors. This
extension (Phase 2) occupies
1375M2 and is shown in Appendix Ila in blue.
Appendices Ilb - Ud show the
location of the various departments in Phase I and
2.
At the request of Mr N Davis a scheme for a
potential Phase 3 extension to
accommodate other unspecified activities has been
drawn up. At this stage the
brief was to establish how many extra staff could
be accommodated in Phase 3,
bearing in mind the restriction imposed by the
Planning Authorities on
numbers of staff in relation to car-parking
spaces. Given the availability of the
GKN site, the total number of car-park~ing spaces
is 25 1. For Phases 2 and 3,
a total number of 82 spaces are available and we
estimate Phase 2 as taking 47:
thus 35 spaces remain for Phase 3 and this equates
to 700m2 of office
accommodation. If accommodation is needed for this
number of staff, it is
proposed that Phase 3 is constructed as shown in
Appendix Ila in red, which
amounts to 78OM2. In the event that only half of
this space is required for Mr
Davis's plans, opporlunity should be taken to
house the Library and
Information Centre, which according to current
plans remains adjacent to the
former PSU building (but which is transferring to
BATUKE) on the ground
floor of Phase 3. We would then have all BATCo
activities centred in this one
building.
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Cost Implications
(a) CVifqi
The following is a summary of the capital costs
associated with the move of all
of the proposed BATCo activities on the
Southampton site to the new budding
(in view of the preliminary nature of discussions
with architects etc., an the
proposed extensions, this information must be seen
as purely an estimate):
Original project costs(Phase 1) E6.90m.
Revised project costs(Phase 1) :E9.16m.
Phase 2 extension E2.00m.
Total Phase 1&2 E 11. 16m.
Phase 3 extension fo. 91 M.
Total Phase 1,2&3 f I 3.07m.
These costs do not include any costs due to
introducing Staines style fitments
and furniture into the new building.
N Revenue
With the difference in research activity implied
in the foregoing am with the
added complexity of changing buildings, it is
misleading to project revenue
costs for the new BTC without involvement of the
Accounting function. This
has not so far been done.
implementation Plan
In terms of implementation the ac6vifies referred
to above can be divided into
those relating to changes in research projects and
those which refer to physical
relocation. Apart from the need to specify
precisely the design and layout of
the proposed extensions to the new building such
that firm budgetting and then
planning application car, be made, there is no
pressure on locaGonad issues.
(There is no urgency to vacate the current FRC
building which in addition to
the FRC staff, houses Personnel/Adminstration,
Patents and part of Corporate
R&D and according to current plans the existing
BTC building will not be
vacated until December 1992).
As a priority a dezision needs to be made on the
Head of R&D in order that he
can have an input in the very short term on the
proposed organisation that
reports to him.
The redirecfion of current FRC staff to the new
BATCo oriented projects
allowing for a safisfactory conclusion to their
current projects will take three
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months. During that period detailed discussions
will be needed between
BATCo Marketing, Head of R&D and several of the
Departmentai Heads from
the BTC in order to clarify precisely the projects
to be undertaken in the area
of Smoking Quality and Environmental Issues.
The target date for announcing the above changes
should ideally be before 21 -
30 January 1992 since QTP seminars will be held
off-site during that period,
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Staff
Appendix I
Product Development ine Sensory Testing
(a) Brand Development
(b) Support to OpCos
(c) Sensory Testing
12
AG Stephenson, C R Jenkins, B C Harding,
C C Greig, D Pickett, D J Dittrich, R T
Fiebelkorn,
P D Case, N Warmn, D Moody,
W D Irwin, C T Lawson.
(d) Smoke Quality Research 12
M Dixon, R O'Reilly, P Whitehead, C J Shepherd,
T A WhitionX Clarke. R L Prowse, C F Hewett,
S Stotesbury, R G Hook (R) J.Mihelic,N.Tnorne
2. Process Development inc. sample manufacture 23
S Hernsley, S Pilai, P Biddlescombe, R Fraser,
D Phippard, A May, W D Lewis, P Tudgey,
S Kimber, R G Knight, S Renshaw, M Jones, S Long
G Degnan, C Draper, A Tewle, G Willoughby,
G Burnage, T Hill, R Matthews, C Kitcher, N Boham,
D B Naylor (R)
,knalysis/Testing 33
P K Shillabeer, K Brayshaw, S Woodford, G K Day,
C C Batt, C Troke, A Hickman, B Christie, P Mifsud
(C Wakeford), S Coburn, P A Bishop, W C Collings
(M Farmer), S Havercroft, D Reay, H Bavington, D
Long
K Reading (J Woodman), U C Raines, D Nicholson,
V Ireland, P Biggs, A I Burden, H M Backshell,
L Clark, L Marshall, L Guy, M Dowle, A Manson, T
Allen,
L Eade, M. C. Coleman, I G Anderson, J.Bevan
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4. Envirommental Projects 6
(a) Packaging
J A Luke, I S Hughes, I.R.Harris
(b) Sidestmarn reduction
K McAdam, M A J Bevan, P White.
5. Regulatory Projects" 7
(a) Additives Guidance
T G Mitchell (R), G Smith, M G Painter
(b) Biological Testing
E D Massey, A E Godfrey, K Kalirai, S E Jarvis
6. Smoking & He3M 2
(a) Development of Policy
(b) Management of contracts
R E Thornton (R), L Rudge
7. Technkal Administration I
R R Baker
(a) Program mt/project planning
(b) Budgetx-y control
(c) External committees (TAC, Coresta, ISO etc)
(d) Q-T-P coordination
(e) Patent Policy management 3
K Mclzan, M J Ward, M R Clarke
(0 Librarytinformation 3.6
V Rice, A I Morgan, S Reading, B Wilkins
(g) Secretarial 7
B C Hanford, I A James, M Merritt, P A Roberts,
F C Lake, B Montana, A Grist ~-n
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Head of BTC
A N OLher
Total
Transfersneavers:
R A Crellin, P C Bevan, G A Few, D P Robinson,
J.Reynard
Retirements:
R G Hook, D B Naylor, T G Mitchell, P Kinnard,
H F Dymond, A L Heard, R E Thornton (7)
R&Dr=/alhwork/
16.12.91
10
110.6
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BATCo document for Province of BritiSh Columbia 26
October 1999