sme toronto chapterto+peo... · sme has members around the world supported by a network of chapters...

1/26/2012

1

1

SME Toronto Chapter

WWW.SMETORONTO.CA

Nigel Southway SME Toronto Chair 2012

About SME:

The Society of Manufacturing Engineers

Premier source for manufacturing knowledge, education and networking.

Many programs, events, magazines, publications and online training division, (Tooling U),

Connects manufacturing practitioners to each other,

Reviews latest technologies and most up-to-date manufacturing processes.

SME has members around the world supported by a network of chapters and technical communities.

SME is a leader in manufacturing workforce development issues, working with industry, academic and

government partners to support the current and future skilled workforce.

www.sme.org.

$125 per Year

http://www.smetoronto.ca/

http://www.sme.org/

http://www.toolingu.com/default.aspx

http://www.sme.org/

1/26/2012

2

About SME Toronto Chapter 26:

The Society of Manufacturing Engineers (SME) Toronto Chapter 26 was founded in 1939.

One of the organization’s oldest chapters.

Today 700 members in the metro and surrounding Toronto communities and a further 300 members in

Canada’s provinces.

New SME Student Chapters,

Provides Local opportunities for education, communication and information-sharing

through its workshops, plant tours, presentations, networking and social events.

www.smetoronto.ca

SME…. Society of Manufacturing Engineers

www.smetoronto.ca

www.smeef.org.

www.sme.org. Corporate

Chapter

Education Foundation

Student Chapter/s

www.sme-TBM.org

Take Back Manufacturing

SME Canada

(EXPO GROUP)

SME Chapter Events





http://www.smeef.org/

http://www.sme.org/

http://www.sme-tbm.org/



1/26/2012

3

The SME Knowledge Roadmap…..

5

SME Chapter

SOFTWARE

MEET KNOW GROW

Your ROADMAP YOUR

EVOLUTION PLAN

THOUGHT-WARE HARDWARE

MEET and connect with people who can help you discover business

solutions, diversification or even a new career.

SME Annual Conference — This is a manufacturer's conference, created by SME

members who understand manufacturing, the need to innovate and the need for

cutting-edge management strategies.

Local Chapter Membership — Build your local connections and network with

members in your own backyard. Meet potential customers, partners and

employers.

Attend SME Events — Make the right business connections by attending our

industry-leading conferences, exhibitions and seminars, all at a special member

price with member-exclusive activities.

Lean Registry & SME Forums — Your online manufacturing connection. Blog,

chat, ask and answer questions. All at your fingertips.

Eight Technical Communities and more than 50 Tech Groups — Connect

virtually anytime, anywhere with technical experts to share and gain knowledge.

http://sme.org/Tertiary.aspx?id=17349

http://sme.org/sme-chapters/

http://sme.org/sme-chapters/

http://sme.org/events/

http://smeconnection.leveragesoftware.com/

http://forums.sme.org/

http://sme.org/tcn

http://sme.org/tcn

http://sme.org/tcn

1/26/2012

4

Automated Manufacturing & Assembly Identifies and pursues advancing technologies and techniques in automation and assembly.

Forming & Fabricating Concentrates on key metal forming and fabricating technologies.

Industrial Laser Promotes laser technology in North America with high intensity by educating the market and advancing the laser technology base.

Machining & Material Removal Discusses, explores and advances ideas related to cutting processes and machining systems.

SME Technical Community Networks (8) Manufacturing Education & Research Advances education and research in manufacturing, career and professional development, and the manufacturing enterprise's need for a skilled workforce.

Plastics, Composites & Coatings Addresses the manufacturing processes of plastics, composites, and finishing and coatings technology.

Product & Process Design and Management Discusses, investigates and advances ideas related to the design and management of products and processes, as well as lean manufacturing concepts.

Rapid Technologies & Additive Manufacturing Concentrates on the technologies and processes that help conceive, develop, test, improve and manufacture new products to bring them to market faster and more cost effectively.

KNOW the latest trends, innovations and solutions to stay competitive.

Manufacturing Engineering® magazine and Annual Industry Yearbooks —

Receive information from the authoritative voices in manufacturing, complimentary

with membership.

SME Daily Executive Briefing — Receive manufacturing e-news compiled and

customized for members.

Monthly Webinars — Industry experts share knowledge on a variety of technical

topics.

Access to manufacturing knowledge of nearly 19,000 documents — Download

the most recent intelligence in seconds.

Ask the SME Librarian — A customized research service for information on

technical standards, hard-to-find articles and more.

Books & DVD Discounts — Receive generous discounts on our extensive line of

technical publications and videos.

http://sme.org/ama/

http://sme.org/ama/

http://sme.org/ffc

http://sme.org/ffc

http://sme.org/ilc

http://sme.org/ilc

http://sme.org/mmr

http://sme.org/mmr

http://sme.org/edu

http://sme.org/edu

http://sme.org/pcc

http://sme.org/pcc

http://sme.org/ppdm

http://sme.org/ppdm

http://sme.org/rtam

http://sme.org/rtam

http://sme.org/manufacturingengineering/

http://sme.org/yearbook-series.aspx

http://sme.custombriefings.com/

http://sme.custombriefings.com/

http://sme.org/webinars/

http://sme.org/webinars/

http://sme.org/techpapers.aspx

http://sme.org/techpapers.aspx

http://sme.org/ask-the-librarian.aspx

http://sme.org/ask-the-librarian.aspx

http://sme.org/store.aspx

http://sme.org/store.aspx

1/26/2012

5

GROW with programs designed to help you expand your career and

leadership potential.

SME Certifications — Stand out from the crowd by validating your

manufacturing knowledge and lean experience.

Jobs Connection — Receive priority listing in our database and search

hundreds of top manufacturing positions.

Leadership Skills — Hone your leadership skills in a safe environment with

other members.

Give Back — Support our future generations by becoming a volunteer leader for

a Local Chapter, presenting at an SME Event, writing a Technical Paper and

promoting manufacturing education.

Awards — SME honors your efforts and contributions. Be recognized for your

work that makes our lives cleaner, brighter, faster and better.

NIGEL SOUTHWAY

• 40 years Broad Business and Manufacturing Experience

• Rough post-war Sea-Port (Bristol England)

• Posh name/Specs…Stress/had to grow up tough

• Product of the British Swinging 60’s !!!!!

• British Engineering Apprentice…Aerospace/Electronics

• BSc EEE C-Eng. in Engineering/MSc Management

• MOTOROLA Manager/Lean and Six Sigma/Implementation

• Change Agent/Educator/Coach/Advisor for LEAN business improvement

• Consulted many organizations in different industry sectors

• Have assisted many Global Sourcing programs and Joint Ventures

• Society of Manufacturing Engineers …2012 Chair Toronto chapter • Globalized Manufacturing will remain a significant challenge!! • Strong Coach to Vision and Plan a Balanced Source Evolution !

www.nigelsouthway NEXUS

Owner of NEXUS CONSULTING SERVICE

AUTHOR : CYCLE TIME MANAGEMENT

…… Fast Track to Productivity Improvement

http://sme.org/sme-certification.aspx

http://www.sme.org/jobsconnection

http://www.sme.org/jobsconnection

http://sme.org/sme-leadership-series/

http://sme.org/sme-leadership-series/



http://sme.org/awards/

http://sme.org/awards/

http://sme.org/affinity-programs/

http://www.nigelsouthway.com/

1/26/2012

6

SME…. Society of Manufacturing Engineers

www.smetoronto.ca

www.smeef.org.

www.sme.org. Corporate

Chapter

Education Foundation

Student Chapter/s

www.sme-TBM.org


SME Canada

(EXPO GROUP)

SME Chapter Events

SME Chapter Activities

• Support Trade shows

• Arrange plant tours at leading edge organizations

• Host key speakers on hot topics

• Provide education/training events and workshops

• Provide coaching to new members

• Provide networking opportunities

• Introduction and connect / referral service

WWW.SMETORONTO.CA


http://www.smeef.org/

http://www.sme.org/





1/26/2012

7

13

TBM


www.SME-TBM.org

WWW.SMETORONTO.CA

Canadian Manufacturing Technology Show 2011 Toronto www.cmts.ca





http://www.cmts.ca/

1/26/2012

8

15

TBM…What is the purpose??

To plan the roadmap to TAKE BACK MANUFACTURING in Ontario.

The goal is to get government, educators and industry leadership……….

…………to start working closer together.

So we can reverse the decline of our manufacturing sectors in Ontario.


16

Globalization?... It is now very clear that the economy both here and in the USA and

through-out the world is floundering,

We are seeing a general failure and dissatisfaction with the globalization

model for financial and economic stability.

Our economic policy makers continue to struggle ….

They are reaching the realization that something much more significant

and fundamental must be done to reposition all western economies…


1/26/2012

9

17

So…the need for TBM should resonate now ….

………more than ever!!


18

Why would we want to Take Back Manufacturing?

The deep concerns expressed from everyone we have talked too is that:

We are all rapidly losing our prosperity via the ongoing decline in this important part of our economy,

We have doubts about the ability of Ontario and Canada to compete.

We are all concerned about jobs and our ability to pay our way as Ontarians.

Also we are all worried about the next generation’s future.

Much more must be done to improve the Canadian economic and business environment to better

position us for success.


1/26/2012

10

The TBM FORUM • A range of Organizations

• Common views and concerns

• Collective strength and unity

• Develop and undertake a Joint recovery plan

• Convince our Governments and Leaders to take action!!

• Define best future for our: • Declining industries

• Economy

• Our children

• Before its too late • Its not game over!!!

19

25 technical Associations

3 Trade associations

5 educational policy makers

Media experts

Local government reps

Industry experts

20

Canadian industry associations, government agencies, major educational

institutions, industry associations, unions and industrial experts that have

participated and agree to fully support the TBM initiative include:

Associations:

American Society of Mechanical Engineers (ASME), Association of Manufacturing Excellence

(AME); Association of Operations Management (APICS); Auto Part Manufacturing Association

(APMA); Canadian Manufacturers and Exporters (CME); Canadian Tooling and Machining

Association (CTMA); High Performance Consortium (HPC), Ontario Power Generation (OPG);

Ontario Society of Professional Engineers (OSPE); Professional Engineers Ontario (PEO); Society of

Auto and Aeronautics (SAE), Society of Manufacturing Engineers Canadian Exposition Group, and

the Society of Manufacturing Engineers (Toronto).

Educators:

Association of Canadian Colleges (ACCC), Canadian Apprenticeship Forum (CAF); Canadian

Competition University Forum (CCUF), and Sheridan College.

Experts: ,

High Performance Consortium (HPM), Organization Thought-ware International Inc., (OTI); The

Progressive Economics Forum (TPEF), and Re-shore Group USA.

Media:

Canadian Plant Magazine, CBC Radio/Canada, and the Globe & Mail.

Unions:

Canadian Autoworkers Union (CAW), United Steel Workers (USW)

Government and Associated Agencies:

Ontario liberal members of parliament (Industry Education study group), Ontario NDP members of

parliament, and the York Municipality Economic and Innovation Development.

1/26/2012

11

Our Ultimate TBM Goal Get government, education organizations and

industry leaders working together as a team to plan our future industrial capability and therefore our future prosperity.

22

1/26/2012

12


FOR OUR KIDS!

23

It’s only a game!!!

24

1/26/2012

13

It’s only a game!!!

We have a generation of parents who have been brought up to think

that only the Japanese make good cars!…….

25

Now we will have their kids thinking Canada cannot make hockey sticks!!

A Global Challenge

GOOD NEWS BAD NEWS

26

1/26/2012

14

Stiff Offshore Competition • Many businesses have faced stiff competition leveraging

offshore supply of products or services that threaten survival

Textiles

Furniture

Footwear

Electronics AUTO PARTS

Appliances

Plastic goods

Hand-tools metalwork

Fittings

27

4% GDP

Globalized Trade

Cumulative Deficit is now 50% 2010 GDP

Regan Bush Clinton

1% GDP

28

Bush Obama

OUR BIG BROTHER

(US GDP 2010=14000B)

1/26/2012

15

Consume

Imports Exports

1.0 1.3

0.3 Wealth transfer (National debt)

(Value added portion only 20%

the balance is natural resources )

We have developed a Wealth Transfer Machine from North America

to emerging economies that is mainly one way.

The Wealth Transfer Machine

29

Concept from “THE END OF THE FREE MARKET” Bremmer

The Big question NOW being asked…

Did we manage the trade balance ?

30

Should it have been trade at any cost?

or

Trade that benefits all?

1/26/2012

16

China is a state managed economy and does not have the burden of democracy!!

1/26/2012

17

Declining

Out Of Balance

Negative Trend

CA

NA

DA

Prosperity factor

34

1/26/2012

18

(GDP=1350B)

10% GDP

CA

NA

DA

1% GDP

2% GDP

Worse than USA numbers!!!

Canada/World

35

Ontario Economic Performance

1/26/2012

19

Current situation…….. Ontario

Economy in the whole of North America is in “stall” mode.

Ontario falling behind in Productivity/Innovation and Prosperity.

Canada Over-dependent on a Resource based economy. (high $)

Canada trade …..Not-balanced (for value adding manufacturing)

Manufacturing as a key sector for Ontario……. in serious decline

Manufacturing support/education infrastructure …….badly unfocused

Overall bleak outlook for the next generation

38

1/26/2012

20

612,494,000,000

40

Ontario GDP = $612B

Summary

Ontario Trade Imbalance (Gap) = $92B or 15% of GDP

Will produce an impossible strain on provincial budgets

At 2% growth we cannot close this gap.

We are now a “have-not” province

1/26/2012

21

Offshore content has increased

1/26/2012

22

Capital misappropriation??

1/26/2012

23

SERVICE JOBS????

2010 9%

Almost 500,000 jobs lost

in last 6 years

46

1/26/2012

24

The social conscience for manufacturing

Most manufacturing based businesses are beyond dispirited….

Our Politicians/Government have little understanding of business and

manufacturing. ….(We must EDUCATE them!!)

Manufacturing is deemed:

Dark, Dirty, Dangerous, Deafening and Difficult….

47

….. And Smelly!

The issues in general ……..We are way out of balance!!!!

We cannot “spend” or “service sector” or “import” our way to prosperity!!.

Forced toward a less prosperous service sector economy (also off-shored)

Reduced workforce and less permanent employment

More expense burden (due to reduced revenues) on local government

Reduced workforce career and succession planning development

Reduced long term prosperity projections !!!!

48

1/26/2012

25

HOW COULD THIS HAPPEN?

49

The Global Competitive gap

1990 1995 2010 2000 2005 2015 1985

LCC Gap

BA

LA

NC

ED

LA

ND

ED

CO

ST

North America

Low Cost Country

(China)

Product transfer

2020

LEAN

OVER CAPACITY OVER CAPACITY

20%

LCC= Low Cost Country

50

LCC starts

Start of Globalized

Manufacturing

“We Need to encourage Global trade (Imports) to take place so that we are involved in this large and new

off-shore market when it develops into future consumers (exports).”

Our Political and Economic

Leadership

“Every-one will benefit from this increase in a Global world market in

this way, and we will grow jobs & prosperity in an expanded service

sector”

Our Political and Economic Leadership

1/26/2012

26


1990 1995 2010 2000 2005 2015 1985

LCC Gap

BA

LA

NC

ED

LA

ND

ED

CO

ST

North America

Low Cost Country

(China)

Product transfer

2020

LEAN


20%

LCC= Low Cost Country

51

LCC starts

Start of Globalized

Manufacturing

Resource/Product transfer

“We have no choice but go off-shore ,If we don’t

our competitor will” (leading NA Manufacturer)

“If you don’t have a LCC strategy you wont make the bidders list!” (Fortune 500 Corporation to

local NA suppliers)

52

1/26/2012

27


1990 1995 2010 2000 2005 2015 1985

LCC Gap

BA

LA

NC

ED

LA

ND

ED

CO

ST

North America

Low Cost Country

(China)

Product transfer

2020

LEAN


20%

LCC= Low Cost Country Due to exchange, tariffs,

Transportation and other hidden

drivers the actual total Costs

to go offshore will continue to rise.

53

LCC starts

Start of Globalized

Manufacturing



1990 1995 2010 2000 2005 2015 1985

LCC Gap

Start of Globalized

Manufacturing

BA

LA

NC

ED

LA

ND

ED

CO

ST

NA

LCC (China)

Product transfer

2020

LEAN OVER CAPACITY LEAN/PROCESS INNOVATION

INFLATION / OIL / EXCHANGE PRESSURE

OVER CAPACITY

54

1/26/2012

28

BEST WORST

% of Total Cost LOCAL OFFSHORE OFFSHORE Issues

Material content 40 40 50 Foreign country materials may need harmonizing with your designs

Labor content 25 3 3 A clear advantage, but product skill and training may be an issue

Overhead 25 4 6 A lack of foreign management capability may effect other hidden costs

Local Support costs 7 10 10 Your internal support for offshore will be an adder to your business costs

Offshore support costs 0 3 6 Support at offshore site will be an adder to your business costs

Transportation 0 6 8 These added costs can also be effected by containerization skills and knowledge

Inventory costs 3 6 10 longer line of supply and maybe associated forecasting will attract inventory

Duty (export and import) 0 8 10 Brokerage, duty and insurance will add to the costs

Total factory cost 100 80 103 Baseline set on local supply

0

20

40

60

80

100

120

LOCAL BEST CASE WORSE CASE

Q1. Do you understand the benefits versus all the direct and hidden costs and the types of sourcing and logistic options? The chart below shows that when the product and source relationships and all the detailed support and logistics are optimized it is possible to see a 20% net gain in operating costs, however equally it does not take much poor optimization to see an overall net loss in the off-shore (outsourcing) journey. Many organizations have experienced this chart the hard way… You need to plan to avoid these issues.

OFFSHORE LOCAL

BALANCED SOURCING

OFFSHORE SAVINGS CAN GO POSITIVE OR VERY NEGATIVE

90 70 10 50 30 40 20 60 80

% LABOR CONTENT

WORSE CASE LCC

BEST CASE LCC

OFFSHORE VERSUS LOCAL MANUFACTURING BY % LABOR CONTENT

(SINGLE LEVEL COMPONENT)

OFFSHORE OFFSHORE

TYPICAL EXAMPLE

56

Material Content

MIGRATE ALL OUR PRODUCTS TO THIS ZONE VIA AUTOMATION AND PROCESS

INNOVATION AND SIMPLIFICATION TO REMOVE

LABOR CONTENT

LOCAL

1/26/2012

29


1990 1995 2010 2000 2005 2015 1985

LCC Gap

Start of Globalized

Manufacturing

BA

LA

NC

ED

LA

ND

ED

CO

ST

NA

LCC (China)

Product transfer

2020


INFLATION / OIL / EXCHANGE PRESSURE

OVER CAPACITY

57

What is happening South of the border? .

• 2 Million jobs lost in USA in last 3 years and got back just 10%...

(MUCH Larger ratio here in Canada..need to get them back!!)

• A resurgence of manufacturing in USA

via

lower exchange rate

Rethinking of globalized supply

Re-shoring cost trade-off modeling and discussions.

• Canada needs to participate!!!

• Need to do at least more “Balanced Sourcing”

58

Re-shoring !!!

1/26/2012

30


RESHORE???

1990 1995 2010 2000 2005 2015 1985

LCC Gap

BA

LA

NC

ED

LA

ND

ED

CO

ST

NA

LCC (China)

Product transfer

2020


INFLATION/OIL/EXCHANGE PRESSURE

OVER CAPACITY

59

OR

more

“Balanced Sourcing”

60

CANADA/US(Reserve) EXCHANGE

(Appreciated)

Created by a resource boom.. Appreciates Currency

Reduces ability to Export Reduces balanced manufacturing

Increases exposure to global instability

75 cent $

We need to understand that we

have been exposed to commodity

speculation not true growth in $ value

And it will not pay our bills in the long term.

Current 1.038 cents

It is creating lost prosperity!!

1/26/2012

31


1990 1995 2010 2000 2005 2015 1985

LCC Gap

Start of Globalized

Manufacturing

BA

LA

NC

ED

LA

ND

ED

CO

ST

NA

LCC (China)

Product transfer

2020

LCC (India/Vietnam)


INFLATION/OIL/EXCHANGE PRESSURE

OVER CAPACITY

New Trade agreements

But may not be written any differently

61

ONGOING RESOURCE/PRODUCT TRANSFER GLOBALIZATION

INSANITY

62

1/26/2012

32

Latest Raw Resource Exporting/Importing Model (NOT the lowest cost or LEAN or Green Global solution)

CHINA/ASIA Manufacturing

recycle loop

Canada

USA

Short supply chains JIT Alternative Leaner approach

9000 km Each way MIN 6 weeks Transit Inventory MIN $100/M cube to transport MIN Many transactions

1000 km Each way MAX 5 days Transit Inventory Max $10/M cube to transport Max Few Transactions

63

NOT Lowest WASTE NOT LEAN NOT GREEN

Mature Economy

Global Supply Chain

Emerging Economy

(A very long Cycle Time)

64

1/26/2012

33

Mature Economy

Mine

Process

Stock-pile

Ship to port

Export process

Sea ship

Offload

Import

Ship to Primary plant

Process

Distribute to Secondary manufacture

Manufacture

Ship to dock

Export process

Ship sea

Dock

Import

Ship to distribution

Distribution stock

Ship to store

Purchase

9000 km Each way MIN 6 weeks Transit Inventory Each way MIN $100/M cube to transport MIN Emerging

Economy

Global Supply Chain (A very long Cycle Time)

Up to 40 weeks Total Business Cycle-time

65

COST TIME PROFILE REVIEW

A cumulative plot of COST over TIME

$ COST

BUSINESS PROCESS CYCLETIME (WEEKS) 66

1/26/2012

34

BUSINESS PROCESS CYCLETIME (weeks)

$ cost

Offshore labor value adding?

RESOURCES TRANSIT PRODN TRANSIT DISTRIBUTION

AREA under this curve is trapped opportunity cost


67

Mature Economy

Global Supply Chain Mine

Process

Stock-pile

Ship to port

Export process

Sea ship

Offload

Import


Process


Manufacture

Ship to dock

Export process

Ship sea

Dock

Import


Distribution stock

Ship to store

Purchase

9000 km Each way MIN 6 weeks Transit Inventory Each way MIN $100/M cube to transport MIN

Emerging Economy

68

1/26/2012

35

Domestic Supply Chain Mine

Process


Process


Manufacture


Distribution stock

Ship to store

Purchase

1000 km Each way MAX 5 days Transit Inventory Max $10/M cube to transport Max Much Fewer Transactions Mature

Economy

VERY Short Cycle Time

69


GLOBAL SUPPLY CHAIN BASELINE

DOMESTIC SUPPLY CHAIN BASELINE

VERY SIMULAR TOTAL LANDED $ COST

LARGE DELTA IN CYCLE-TIME

Significant difference in manufacturing costs

Significant Trapped Opportunity cost/time Area

70

1/26/2012

36


$ cost COST TIME PROFILE REVIEW

GLOBAL SUPPLY CHAIN BASELINE

DOMESTIC SUPPLY CHAIN BASELINE

IMPACT OF HIGHER INTEREST RATE CASH TRAPPED IN GLOBAL INVENTORY

71



BASELINE GLOBAL COST

Suggest we repatriate OUR global cash tied up and redeploy into local capitalization and education To gain benefits of productivity improvements

72

1/26/2012

37



BASELINE GLOBAL COST

Suggest we repatriate OUR global cash tied up and redeploy into local capitalization and education To gain benefits of productivity improvements

73



LEAN DOMESTIC

83%

109%

General Outcome of applying a LEAN Domestic solution: Up to 5 times Cycle-time/inventory reduction Up to 20% less landed cost with appropriate capitalization

(98%

74

1/26/2012

38

Domestic Supply Chain

1000 km Each way MAX 5 days Transit Inventory Max $10/M cube to transport Max Much Fewer Transactions

Mature Economy SCRAP?

SCRAP?


(Re-Balanced)

BALANCED TRADE BALANCED SOURCING

HEALTHCARE

EDUCATION TRAINING INNOVATION 75


Mature Economy


(Re-Balanced)

HEALTHCARE

EDUCATION TRAINING INNOVATION

LOCAL INDUSTRY RE-CAPITALIZE MODERNIZE INTEGRATE LEAN –OUT

INNOVATE FOR GREEN RE-TRAIN/EDUCATE STRONG APPRENTICESHIPS DEVELOP CAREERS UPDATE MANAGEMENT PRACTICES INNOVATION /PRODUCTIVITY TOOLKITS TECHNOLOGY IMPROVEMENTS

BECOME BETTER ENTITLED TO THE SERVICE SECTOR 76

1/26/2012

39


Mature Economy


(Re-Balanced)

BALANCED TRADE

HEALTHCARE

EDUCATION TRAINING INNOVATION

HI Tech Manufacturing DESIGN / R&D

Intellectual Property to help Emerging economies

Franchised Manufacturing to Help Emerging

economies

PRACTICE BALANCED SOURCING

77

OFFSHORE LOCAL

NEW GLOBAL MODEL EVOLUTION


78

IP/FRANCHISE Transfer

Intra-Country Trade balance Must be a prime Performance directive.

1/26/2012

40

We need to move toward this Better Global Economic Model

That will avoid the perpetration of

waste and marginal prosperity

Yet still allow wealth and growth to be fairly shared by all.

79

IDEAS

IP

KNOWLEDGE

G1.0 High Waste and Transportation

G1.0 Volatile Labor and Wealth Transients

G2.0 Improved Productivity and less waste

G2.0 More stable national economies

1/26/2012

41

81

Take Back Manufacturing The Now situation

(Measured over the last 10 years + …. USA and Canada)

Stock market instability

Corporate cash (Excess)

Very Low Interest rates

Diminishing Technical education

Increasing Cost of oil

Increasing Commodity prices

Mid to low Industrial investment

Reduced Consumer confidence

Government budget deficit

Growing North American Trade deficit

Increased resource based economy

Unemployment up (Certainly in value adding sectors)

Less Career opportunities for next generation

Increased Cost of living

Prosperity dropping

Not so good

Faith that Canada is a good place to live

82

We will not run out of Oil…

………………..but we will run out of Oil we can afford to burn!!

1/26/2012

42

83

Numeric data is available, click here for information.

Crude Oil Prices in USDs

Start of Globalization

Globalization breakeven point

Note: localized supply of energy will not change this outlook

90 70 10 50 30 40 20 60 80

% LABOR CONTENT

POST LCC ESCALATION PERIOD

BEST LCC PERFORMER



OFFSHORE OFFSHORE

MIGRATE ALL OUR PRODUCTS TO THIS ZONE VIA

AUTOMATION AND INNOVATIVE PROCESS PLUS

SIMPLIFICATION TO REMOVE LABOR CONTENT

TYPICAL EXAMPLE

84

Material Content

LOCAL

http://www.oilnergy.com/datanumb.htm



1/26/2012

43

90 70 10 50 30 40 20 60 80

% LABOR CONTENT

Post LCC Escalation Period



OFFSHORE OFFSHORE

MIGRATE ALL OUR PRODUCTS TO THIS ZONE VIA AUTOMATION AND PROCESS INNOVATION PLUS SIMPLIFICATION TO REMOVE LABOR CONTENT

TYPICAL EXAMPLE

85

Material Content

LOCAL

THE FUTURE

86

(The Near future)

1/26/2012

44

New Pressures on LCC Globalization (Resource & Product Transfers)

87

LCC Global Trade

Localized Trade

Oil /transport price increases

Stock market Rebalance

Emerging economy price inflation

Public and Political Pressure

Interest rate increase

Re-evaluated Balanced Sourcing models

Corporate taxation

Complex supply chain costs

Import/Export Re-balance

Re-shoring!

Re-capitalization!

Re-sourcing!

Re-hiring

Government budget balance

We will meet G20 deficit and debt targets well ahead of schedule.

Yet we also are implementing a Pro-jobs and growth agenda that is focused on promoting investment, hiring and retention of workers affected by the Global economic downturn.

Stephen Harper

13th October 2011

Globe and Mail

88

1/26/2012

45

Job loss Job Stagnation

Trade Imbalance Lower export opportunity

Over cheap products Over expensive products

Economic Bubbles Exclusion from global growth

Market volatility Capital immobility

Wealth transfer Reduced growth

RESET THE ECONOMIC BALANCE

NATIONAL PROTECTIONISM GLOBALIZATION

OPTIMUM PROSPERITY

89









OPTIMUM PROSPERITY

90

1/26/2012

46









OPTIMUM PROSPERITY

91

Looks like TBM !!!

BUT

Are we ready???.....

92

1/26/2012

47

WHY NOT? • We already have the resources here

• We still have the know-how and skills.

• We have our consumers here.

• We have our investments here

• We have our futures here

• Why should we import ALL the manufactured

goods and export all our value added wealth and prosperity?

93

THE JOURNEY…NOT EASY BUT NESSESARY AND WORTHWHILE

• Will require strong focus by business leaders

• Strong support from: » Educators

» Government

» Associations

» Investors

» General Public

We need to create a clear VISION of this new manufacturing recovery environment!!

94

1/26/2012

48

THE TBM

ROADMAP

95

Take Back Manufacturing ROADMAP

1/26/2012

49

TBM PLAN Planning

Forum 9th June 2011

Apprenticeship Training System

Professional Re-training

System

Manufacturing Technology

development

Government

policy Proposal

Joint Education & Training board

GOVERNMENT’S

POLICY FOCUS

TAX POLICY

TRADE POLICY

EDUCATION

POLICY

Career Development

Plan

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific

LEAN Process Education

Innovation Tool-kit

Productivity Tools

New Management practices

Improved capitalization

Other Initiatives TBD

TBM Awareness presentations

Phase1

Phase 2 Phase 3

97

Government Concurrence

TRADE SHOWS

Support local Government

Planning process

Trade Shows

Ongoing

SME/TBM

Fall 2011

Events

TBM PLAN Planning

Forum 9th June 2011



System


development

Government

policy Proposal


GOVERNMENT’S

POLICY FOCUS

TAX POLICY

TRADE POLICY

EDUCATION

POLICY

Career Development

Plan

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific


Innovation Tool-kit

Productivity Tools





Phase1

Phase 2 Phase 3

98


TRADE SHOWS


Planning process

Trade Shows

Ongoing

CME TRADE Assoc

SME/TBM

Fall 2011

Events

1/26/2012

50

Take Back Manufacturing Become “Entitled” with government support to Take Back Manufacturing.

Explain to the public that:

• Governments cannot spend or budget their way out of this..

• Everyone MUST Reduce IMPORTS and Earn more EXPORTS

• We cannot continue to rely on our natural resources for economic stability.

• Government policies need to promote and sustain local business.

• Re-direct and gain an aptitude for manufacturing….

• Re-focus education and training with integrated Apprenticeship programs.

• Implement Advanced Manufacturing Know-how and Technology.

• Improve our social attitude toward manufacturing.

99

100

Win back

• Productivity improvements…..

Via latest manufacturing strategies, concepts and technologies

• Innovation and competitiveness…

Use manufacturing as a strong incubator for innovation.

• Careers.. Be excellent at all aspects of Manufacturing and Product Design

• Jobs… Encourage a return to manufacturing as the place to be!!!

• Prosperity… Recognize the power of adding value to the economy.

Entitle and Empower the Next Generation!!!


1/26/2012

51

SUMMARY

• We want to balance country level Imports and Exports. (without over reliance on natural resources)

• Earn the right to boost value adding Exports.

• This means Engineered Manufactured products.

• This means that we will need a strong domestic Redeveloped manufacturing base to provide the strength to undertake this.

101

TBM PLAN Planning

Forum 9th June 2011



System


development

Government

policy Proposal


GOVERNMENT’S

POLICY FOCUS

TAX POLICY

TRADE POLICY

EDUCATION

POLICY

Career Development

Plan

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific


Innovation Tool-kit

Productivity Tools





Phase1

Phase 2 Phase 3

102


TRADE SHOWS

Trade Shows

Ongoing

Forum Members

1/26/2012

52

Recommend: New Apprenticeship Training VISION

• Integrated Career Pathway Apprentice Journeyperson Technician Technologist

Engineer

• Industry Recognized Skills Development Progression

• Apprenticeship Pool From The Best, the Brightest And The Most Talented

• Starts In High School And Recognized As Most Valuable Component Of Workforce Development By Industry And Community

• Become The Learning/Occupation Destination Of Choice By High School Students

• Corp Apprenticeship Courses Are Transferrable And Articulated To Other Post Secondary Colleges And Universities, Supporting Lifelong Progression In Learning As Shown In Career Pathway Above

Trade

Technician

Technologist

Engineer

TBM PLAN Planning

Forum 9th June 2011



System


development

Government

policy Proposal


GOVERNMENT’S

POLICY FOCUS

TAX POLICY

TRADE POLICY

EDUCATION

POLICY

Career Development

Plan

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific


Innovation Tool-kit

Productivity Tools


Capitalization Tools



Phase1

Phase 2 Phase 3

104


TRADE SHOWS

Trade Shows

Ongoing

SME/Other Associations

SME/TBM

2012

Events

1/26/2012

53


105

SME TBM

Survey

SOFTWARE

MEET KNOW GROW

Your TBM ROADMAP YOUR TBM EVOLUTION

PLAN


The SME Knowledge Evolution Plan

106

SME networking for success

Business Process improvement

Strategic planning/Innovation

New Product Introduction streamlining

Balanced Global Sourcing

Production Process excellence

Distribution and Inventory management

Manufacturing Technology Toolkits

Business Systems

Management technique upgrades

Organizational learning systems

Organizing your : Thought-ware Software and Hardware….

……For TBM advantage

1/26/2012

54


107




New Product Introduction





Business Systems






SME positioning survey for TBM….. Self calibrating your organizational capability.

SME Evolution planning for success….The journey to Meet /Know /Grow

How to attend a trade show for strategic advantage…rediscover the art form.

SME swop meet… an online debating environment for our new MFG Practitioners

Emerging New Manufacturing Technologies… an open forum to MEET/KNOW/GROW

SME Student chapter symposium… let’s get the new blood involved.


108









Business Systems





Business Process improvement Lean benchmarking and workshop… where are YOU on the curve? Lean operational tours… what others are doing?....what can we learn? Lean certification and beyond… formalizing the improvement journey. New interactive performance measurements …….. The driver for business excellence. LEAN accounting and Cost estimating seminar….. Making the better cost decisions Cost Of Poor Quality systems for measured improvement…… Essential tools

1/26/2012

55


109









Business Systems





Strategic planning/Innovation Executive workshop for Global success…. Join others to hone your own strategic plans. Lean Business awareness building workshops… how to get started or restarted How to improve the operation of a small business..A 6 step process for owners Market and business planning…. a way of life across the organization Innovation 101 …….and how to implement. Innovation incubation…...Integrating the internal organizations together Recapitalizing the business process for flexibility and maximum payback


110









Business Systems





New Product Introduction NPI collaboration and control systems….. The forgotten yet critical business process New product/New manufacturing process integration.. A step by step process Six Sigma/DFM ……..getting results but keeping it simple!! Rapid prototyping and product launch systems….. Essential to beat the competition.

1/26/2012

56


111









Business Systems





Balanced global sourcing Balanced sourcing…. Getting it right..This time!

Re-shoring trends in the Tooling and mould making industries

Supply-chain management and optimization

Supplier certification and scoring systems.


112









Business Systems





Production Process Excellence LEAN Manufacturing Process design and simulation workshop Total Productive Maintenance… the essential for reliability Process flexibility design and improvement workshop Point meetings / 5S

1/26/2012

57


113









Business Systems




……For TBM advantage Distribution and Inventory management Global logistics systems Inventory management systems


114









Business Systems




……For TBM advantage Manufacturing Technology Toolkits CAD/CAM implementation workshop Robotic application design and programming workshop CNC machine tool application and programming workshop Advanced CAPP (Computer aided process planning) GD&T ……made easy and in perspective and what’s next? Special interest topics by sector (TBD)

1/26/2012

58


115









Business Systems




……For TBM advantage Business Systems The Integrated Enterprise..(IS/CAE/CAD/CAM/CAPP/ERP/CAT)

ERP Next generation collaboration systems…. Are we there yet?

ISO and how it fits with your future business evolution.


116









Business Systems




……For TBM advantage Management technique upgrades What is TBM and how to understand the economic trends …… and how they affect us all.. The new role of the Manufacturing Engineer….. Become the pivot point for TBM Organizational engagement systems… what and how? The new role of the management/bargaining unit team for TBM Continuous Improvement culture…. A complete 24/7 environment for flexibility and success The Evolution planner … A Coordinator-for-Change Training Package Supervising in a LEAN environment… the new role/tools/techniques/operating practices Organizational team building workshops Creative problem solving and analysis tools Project leadership training

1/26/2012

59


117









Business Systems




……For TBM advantage Organizational learning systems How to approach and utilize an apprenticeship system for your business How to build a formal employee training program. Understanding the latest government assistance programs for industry.


118









Business Systems





1/26/2012

60


119

SME TBM

Survey

SOFTWARE

MEET KNOW GROW

Your TBM ROADMAP YOUR TBM EVOLUTION

PLAN


TBM PLAN Planning

Forum 9th June 2011



System


development

Government

policy Proposal


GOVERNMENT’S

POLICY FOCUS

TAX POLICY

TRADE POLICY

EDUCATION

POLICY

Career Development

Plan

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific

Sector specific


Innovation Tool-kit

Productivity Tools





Phase1

Phase 2 Phase 3

120


TRADE SHOWS


planning process

Trade Shows

Ongoing

CME TRADE Assoc

SME/Other Associations

Forum Members

SME/TBM

2012

Events

1/26/2012

61

THANKS

Your Job to help TBM? “Thumbs up” for TBM???

Study the Information package. (more at http://sme-tbm.org )

Sign up for the TBM survey and TBM Roadmap

Get your sector Society/Association to join the TBM Forum.

121

HELP US HELP YOU!!!

122

TBM


sme toronto chapterto+peo... · sme has members around the world supported by a network of chapters...

Documents