SECRET
Recommendations ror omanimtion of B&Uo R&D
A decision has been taken by the TSRT to terminate the Group-funded
fundamental research programme at FRC (with the exception of a small set of
regulatory projects). 'ne focus of the group's R&D activity will now be
orientated to short term product superiority; B&W with BATCF will become
centms of excellence on 'blended cigarettes' and BATCo will major on
'Virginia' product superiority. 'nis note considers the course of action that
needs to be followed by BATCo to implement these changes.
Role of BATCo R&D
Following the brief given to the blended team, whilst the bulk of R&D
activities should conccntratc on the two-year time-frame, some effort should be
On
given to longer term projects (up to 4-year) to ensure competitive
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 spread of
(0-_ activities to be encompassed in BATCo's Facilities should be:
Ti.-.xAto, e J
I Product Development
(a) Brand development
(b) Support to OpCos
(c) Sensory Testing
(d) Smoke Quality Research
2. Process Development (inc. sample manufacture,customs,tobacco
stores) 1, -,
. Jq3
3 AnalysistTesting -,-
4. Environmental Projects
(a) Packaging
N Sidcstream reduction
5. Regulatory Projects-
(a) Additives Guidance
(b) Biological Testing lk,))
6. Smoking and Health
(a) Development of policy _"'As ,A- Create. p
(b) Management of contracts
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7- Technical Administration
(a) i Programme/project planning
(b) I Budgetary control
(c) External committees (TAC, Comsta, ISO tic) /I, 'tI
(d) Q-T-P coordination
(e) Patent policy management
IL @@Lk (f) Library/information
Steered and funded by CAC companies (inc BATCo)
Orvanisation
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. The 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 are in functional groups but work in a
matrix manner on projects in one establishment. This has implications (see
later) for the new R&D building now being planned on the Southampton site.
The proposed structure for the new BTC is:
Manager of STC
Produa Pnwm Alylis
-D" Dew Testing "Kb Ism
In terms of management of the Centre it is recommended that this function 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 Millban.k. The
appointment of a Technical Administrator of the Centre (planning,
information services. patents,QTP coordination) is recommended. The
Smoking & Health function (R. E. ThomtonfL.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 transfer to
Southampton When R.E.Thomton retires (August 1993), depending upon
who is appointed, the Head of BTC should takeover the response IN for
S&H strategy with L.Rudge monitoring literature and managing external
contracts.
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BATCo document for Province of British Columbia 23 April 1999

The proposed structure for managing R&D within BATCo is therefore:
Chairman BATCo
C. A,) I
Head of R&D/Manager RTC
Cal
AdmiaWmtor
ILO-4,
De, Dev Testing Issues Issues
(& smoke rcc
quality)
I
Although the number of sections 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 definition and monitoring and. at least for the
first year. direct involvement in this side can be relatively low.
Staffine
The 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 secretary) 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 Rer.
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
Near Rets. 106.6
3
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BATCo document for Province of British Columbia 23 April 1999

The BTC also depends an 6 temporary staff to meet its programme and this
requirement will not change. Currently the two centms use an additional 12
staff from MSD and Administration in order to function and this may be
expected to continue.
The detailed distribution of personnel in the new BTC is shown in Appendix
1.
Space Reguirements
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-cast
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 ETC. 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 1375mz and is shown in Appendix Ila in blue.
Appendices Ilb - Ild 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. beating 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-parking 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 700fn7- 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 780mz. In the event that only half of this space is required
for Mr Davis's plans, opportunity 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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BATCo document for Province of British Columbia 23 April 1999

Cost Impli
(a) Capital
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
building (in view of the preliminary nature of discussions with architects etc.,
on 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 I&2 El 1. 16m.
Phase 3 extension L0.91m.
Total Phase 1,2&3 LI 3.07m.
These costs do not include any costs due to introducing Staines style fitments
and fumiturc into the new building.
(b) Revenue
With the difference in research activity implied in the foregoing and 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 activities referred to above ran be divided into
those relating to changes in research projects and those which rc&r to
physical mlocadon. Apart from the need to specify precisely die design and
layout of the proposed extensions to the new building such that firm
budgctting and then planning application can be made, them is no pressure on
locational issues. (Them is no urgency to vacate the current FRC building
which in addition to the FRC staff, houses Personnel/Adminstradon, Patents
and pan of Corporate R&D and according to current plans the existing BTC
building will not be vacated until December 1992).
As a priority a decision needs to be made on the Read of R&D in order that
he can have an input in the very short term on the proposed Organisation that
reports to him.
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I .1.
The redirection of current FRC staff to the new BATCc oriented projects
allowing for a satisfactory conclusion to their current projects will take three
months. During that period detailed discussions will be needed between
BATCo Marketing, Head of R&D and several of the Departmental Heads
from the BTC in order to clarify precisely the projects to be undertaken in the
area of Smoicing 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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BATCo document for Province of British Columbia 23 April 1999

staff
1. Product Development inc 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 Warren, D Moody,
W D Irwin, C T Lawson.t
(d) Smoke Quality Research 12
M Dixon, R O'Reilly. P Whitehead, C J Shepherd.
T A Whitton,M Clarke, R L Prowse, C F Hewett,
S Stotesbury, R G Hook (R) J.Mihefic.N.Thorne
.7
2. Process Development inc. sample umufacture 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 Tearle, G Willoughby,
G Burnage, T Hill, R Matthews, C Kitcher, N Boham,
D B Naylor (R)
3. Analysis/Testing 33
P K Shillabeer, K Brayshaw, kWoodford, G K Day,
C C Ban, C Troke, A HickAa, B Christie, P Miftud
(C Wakeford), S Coburn, P A Bishop, W C Collings
(M Farmer), S Havercroft, D Re
py. H Bavington, D Long
K Reading (J Woodman), U C "ines. D Nicholson,
V Ireland, P Biggs. A J Burden, H M Backshell,
L Clark, L Marshall. L Guy. M Dowle, A Manson, T AUen,
L Eade,M.C.Coleman, I G Anderson, J.Beyan A
X.%
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BATCo document for Province of British Columbia 23 April 1999

all
4. Environmental Projects 6
(a) Packaging
J A Luke, I S Hughes, I.R.Harris
(b) Sidestmam reduction
K McAdam, M A J Bevan, P White.
5. Regulatory P@ects** 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 & Health 2
(a) Development of policy
(b) Management of contracts
R E'rhornton (R), L Rudge
7. Tecbinical Adminisn-Aon
R R Baker
(a) Programme/project planning
(b) Budgetary control
(c) External committees CrAC, Coresta, ISO etc)
(d) Q-T-P coordination
(e) Patent policy management
K McLean, M J Ward, M R Clarke
(f) Ubraryrinformation 3.6
V Rice, A J Morgan, S Reading, B WULns
(g) Secretarial 7
B C Hanford, J A James, M Merritt, F A Roberts, C:b
F C Lake, R Montana. A Grist 0
LJ-J
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BATCo document for Province of British Columbia 23 April 1999

8. Read of BTC
A N Other
Total 110.6
Transfers/leavcrs:
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&Drecs/alhwork/
16.12.91
(.04
1.1.0
INI
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BATCo document for Province of British Columbia 23 April 1999