Tyman aims to be a market leader in each of the segments that the divisions serve.
Tyman’s strategy creates value for shareholders by:
- increasing revenue through consistent market share gain and pricing discipline;
- maximising margins by eliminating cost and waste from processes; and
- focusing on capital allocation and cash generation.
The Group measures success through a focus on its KPIs which are measured, reported on and challenged at all levels of its business.
Increasing customer value through:
- providing customers with the engineered components they need to add form and function to their end products;
- providing the highest quality product for the relevant price point;
- offering industry-leading levels of service; and
- investing in products and processes such that Tyman is the partner of choice.
Increasing value for our people through:
- giving employees a modern, safe operating environment and opportunities for career development;
- investment in facilities across all three divisions;
- commitment to improving health and safety across the Group; and
- enhanced training and development programmes.
Increasing shareholder value through:
- focusing on returns through capital allocation and cash generation;
- profitable growth in market share year on year; and
- pricing discipline to ensure a fair return on investment.
Substantially all of the components supplied to Tyman’s customers – whether manufactured by divisions in their own plants or sourced externally – are engineering-led, value-added products made to Tyman’s designs, protected where possible and practical by patents and intellectual property and manufactured on the Group’s proprietary tooling.
Tyman believes in establishing an honest and fair long term relationship with suppliers and customers based on value, quality and range of products, industry-leading service and value-added technical support. Our relationships are enduring, with some businesses having been customers of the Group for over a century.
Expertise and experience
Tyman invests in its people through employee training, career path development, and improvement of working practices and conditions as evidenced by the significant investment made in the Group’s facilities in recent years. Training schemes around the Group include apprenticeship schemes and vocational training, as well as personal development programmes.
Quality and service
Tyman aims to differentiate its offering from that of the Group’s competitors by providing customers with a one-stop solution that incorporates the highest quality product at the relevant price point, delivered to the customer’s specification on time and in full.
Tyman chooses to manufacture certain products, such as complex balances, extrusions and seals, close to the customer base where flexibility, variety or complexity are key to the component manufacturing process and the customer. Where the customer is better served by a lower cost manufacturing process, products may be manufactured more remotely.
Tyman focuses on financial disciplines that encompass margin targets for each product, close scrutiny of the cost base, optimisation of working capital, and a rigorous approach to return on capital and its allocation, both internally in the form of capital investment and externally in the form of M&A.
Market share gain
Tyman aims to secure profitable market share increases annually through deeper penetration of the existing customer base, the development of new products and winning new customers. The breadth of the Group’s product offering and its ability to offer customers engineered solutions mean that in each market there remain opportunities for the Group to continue to increase its market share.
Divisions target minimum gross margin thresholds for each product line and in pricing consider the end to end cost of providing the necessary product and service to customers. For the ultimate customer, wherever they are located, Tyman’s aim is to provide a differentiated product offering at an appropriate price, delivered to specification, on time and in full.
Divisions scrutinise Tyman’s manufacturing and sourcing processes to ensure that it is providing products to the customer in the most efficient manner. Divisions operate rolling programmes of process improvement engineering designed to eliminate unnecessary cost from our processes and reduce scrap levels.
The Group adopts a rigorous appraisal process for all items of capital investment in order to ensure that investments are supported by a robust business case. Divisional investment plans are required to provide an attractive return to the Group overall, while also ensuring that divisions continue to invest in making facilities safe, leading edge and attractive working environments that are fit for purpose for an international manufacturing organisation.
Each division is targeted on conversion of all of its underlying operating profit into operating cash. These divisional cash conversion targets intentionally exclude capital investment in order to encourage the required long term investment decisions necessary to improve the Group’s business. At a Group level, operating cash conversion is measured after capital investment.
In any one year, a division may need to invest in working capital in order to support customers’ needs; however, a focus on cash conversion ensures that working capital investment receives the necessary scrutiny.