Case studies
 
 
 
 
 
 
  
  Case studies
Reagecon Diagnostics Limited
John Barron - Managing Director
 
Introduction
Project CR-1031: RESET: Development and testing of in-process chemical sensors and an on-line PC based system for the measurement, monitoring and control of industrial processes.
Reagecon Diagnostics Limited participated in an EU funded R&D project to develop a range of heavy duty sensors for pH measurement in the process and chemical industries, with a PC-based computer system for the monitoring and control functions.
The partners included academic and industrial companies to do the research and development work. Site testing of prototypes was done with two partners who, as end-users, were able to validate the prototypes in aggressive process applications.
The RESET system provides a low cost solution to the measurement, monitoring and control of pH in process fluids and effluent discharge. It is targeted at SMEs because it enables them to meet the increasingly strict environmental legislative requirements at an affordable price.
The consortium
EU R&D projects work on the technology that will improve the market potential of future products and processes; but developing the product itself can not be a part of the project.

Lead partners were Reagecon Technology Ltd. (Ireland and UK). Partners were the Université de Savoie (France), Labtech Limited (UK), Solomat Limited (UK), NITEC (Sweden), and Heineken Brewery (Ireland).
Reagecon and the Université de Savoie did basic R&D work. Solomat was responsible for the development of the electronic hardware and software elements of the systems signal-handling component. Labtech contributed to the mechanical aspects of the self-cleaning and self-calibration device. The Heineken Brewery in Ireland and NITEC, a Swedish pulp and paper service company, provided access to a number of sites for testing prototypes in hostile environments for more than 12 months.
Project management
The project was co-ordinated and managed by Reagecon Technology Limited who employ 48 people at three manufacturing sites; Worcester & Cowley, UK; and Shannon, Ireland.
John Barron, Reagecon's Managing and Technical Director, co-ordinated and planned the in-house R&D work on the project and the extensive R&D work of the partners.
The company had identified that sensors for the process market was a potential growth business with higher profit margins

Many meetings were held during the project. The help of the Commissions Project Technical Adviser was invaluable in providing guidance on technical and project management issues at stage reviews and at other key meetings. Collaboration with the partners was excellent.
Project objectives
Prior to the RESET project, Reagecon were principally involved in the manufacture of chemical reagents and laboratory sensors targeted at the laboratory market.
The company had identified that sensors for the process market was a potential growth business with higher profit margins. The principal aim of the project was sensor research because the company had some of the enabling technology required. The proposal prepared for the EU CRAFT project included a plan to develop a range of sensors with novel characteristics targeted at the chemical process market; with an outline plan to use a low cost control system to process the signals from the sensors.
If a low cost turnkey package could be developed it would enable Reagecon to break into a new and potentially lucrative market.

As the project proceeded it became evident that it was also important to research and develop the signal processing techniques associated with the sensor technology. This would enable Reagecon to offer customers a complete turnkey product package that would meet their needs for process and effluent measurement, monitoring and control.
If a low cost turnkey package could be developed it would enable Reagecon to break into a new and potentially lucrative market.
As John Barron notes:
   "Prior to RESET many markets were closed to us because we were not selling a turnkey solution. We realised that we were selling accessories, but not the main capital item, and that control could be commercially more important to us than measurement . A 'turnkey' control system would open up new market opportunities for a comprehensive low cost product package specifically aimed at SMEs to help them comply with new regulatory environmental requirements."
Project outcome
Prototypes were successfully manufactured and evaluated on-site with the end-users for up to 12 months. These included:
pH electrodes using newly developed reference systems and sensing glasses.
A range of Ion-selective electrodes, which enhance the current state of the art specifically for, nitrates, fluorides, and copper in a number of applications.
Once the project was finished, Reagecon realised that although the core technology for manufacturing the products was sound, there were a number of manufacturing techniques which needed to be acquired and implemented to further enhance the newly developed sensing glasses. This was needed to enable them to withstand the physical and chemical rigours of installation and use in aggressive process and chemical environments.
The value of developing strategic alliances with specialist partners has been proved and will be continued in the future

The RESET system
Because of the mix of partners in the consortium, it was possible to expend substantial resources to develop the RESET system; the value of the collaborative R&D was extensive. The signal processing capabilities now available to Reagecon are based largely on the knowledge base developed through the consortium partners. The value of developing strategic alliances with specialist partners has been proved to be highly beneficial and will be continued in the future.
Problems encountered and lessons learned
After the CRAFT funded pre-competitive project was successfully completed, the costs of using its results to develop a fully capable and marketable product were substantial

The planning of future projects will benefit from devising countermeasures to the problems encountered in this one.
Although the CRAFT funded pre-competitive project was successful, the costs involved after its completion in developing a fully capable and marketable product were substantially above Reagecon's original estimates. Considerable funds have already been spent on this development and will continue to be, until the product is fully developed and tailored to users' needs.
The problems encountered during the project, many of which were unforeseen at the start, led to the project's cost substantially exceeding the CRAFT budget. This increased the project manager's involvement almost to a full time input - about three times more than the original budget estimates provided for! This resulted in an over-run of about 200,000 ECUs.
The pre-competitive (funded) part of the project was competed within the 24-month time frame but, because of pressures of other work, the final project submission was delayed for five months. The initial project application was made in 1991 and the contract for the key elements of the work was awarded in 1993. This seriously delayed the implementation of Reagecon's business plans. Overall the project took in excess of four years, finishing in December 1995.
Further development
Since completion of the CRAFT project Reagecon has further developed RESET to enable potentiometric and amperometric signals to be controlled and measured over an RS485 communications link. It monitors and controls parameters such as pH, temperature, flow and level.
The main advantage of RESET is that measurements taken at a distance of up to one kilometre can be transmitted from up to 16 sites; for example, eight sites in the factory and eight sites at effluent discharge points can be monitored simultaneously. Measurement signals fed from the sensors are multiplexed and passed to a PC; front-end software allows the operator to set all the control parameters. RESET can be linked onto networks containing programmable logic controllers, provide data collection and storage, and can network using Windows 95 or Windows NT into the mainstream factory network.
Funding issues
In common with many small companies, Reagecon required substantial additional funds to exploit the project commercially, by developing a marketable product, once the pre-competitive background technology work was done. In John Barron's view it would be of great benefit if the EU were able to inject seed finance in the form of equity participation or loans to help bridge the gap between pre-competitive success and commercial launch. (In fact, marriage broking with sources of funding is under consideration for the 5th Framework Programme.)
Commercial exploitation
The project enabled Reagecon to research, design, develop and produce proven prototypes of the sensors which were at the heart of the original proposal

The project enabled Reagecon to research, design, develop and produce proven prototypes of the sensors which were at the heart of the original proposal. It also enabled them to prove the concept, using working prototypes of the RESET system. Exploiting this technology has been a core activity since the completion of the project in 1995. It now underpins Reagecon with solid building blocks for its product range to achieve its future growth and profitability targets. Reagecon has now developed:
A range of electrodes for the measurement of pH, conductivity, redox and specific ions: these include heavy-duty process electrodes for pH measurements in aggressive process and chemical environments.
The RESET System: In the first year after completion of the project, the system contributed about 5% of the company's turnover, although this was achieved by selling two customised solutions and prototypes. Valuable lessons have been learned which are now being used to enhance prototypes and launch a standard product range.
The real significance of RESET to Reagecon is that the requirement for a turnkey product to meet SMEs' requirements has been achieved. They now have available a low cost system for the measurement, monitoring and control of process fluids and effluent discharge that did not exist in any form before this project. The product is projected to contribute 20% to turnover, between £1 million and £2 million a year, within the next five years.
Product launch and business strategy
The RESET project has provided the company with many of the building blocks to achieve an £8 million turnover in five years, equivalent to a growth rate of 25% to 30% a year

The RESET system was launched at the Achema exhibition in Frankfurt late in 1997. It will be re-launched with upgrades in March 1998 at the Pittsburgh Conference in New Orleans. And in April 1998 at the Analytica Exhibition in Munich.
The research very much underpinned the business strategy. It enabled them to break into markets hitherto closed to them because they were previously selling accessories rather than complete control systems.
It is the objective of the company to grow substantially over the next five to seven years. The strategy to achieve consistent high growth is likely to be a mixture of organic growth, product development, technology development, company acquisition and joint ventures.
The RESET project has provided the company with many of the building blocks to achieve an £8 million turnover in five years, equivalent to a growth rate of 25% to 30% a year.
 

 

All the elements of what this company did are part of a methodology you can learn - adaptable to any product development project from the totally new to just a small change. Develop products that customers clamour to buy. Cut the cost of developing them. Cut the cost of manufacturing them. Drastically reduce the time it takes to develop them. Learn how...
 

 
Dr C B Mynott, Managing Director, TICS Limited