Eric Mittelstadt, CEO

How You Can Help Meet21st Century Challenges to

U.S. Manufacturing

MaximizeMinnesota: Your First-Line Resource

November 15, 2007

2

What We Will Cover Today

1. Status & Outlook for US Manufacturing

2. Workforce Implications

3. Process Technology Developments

4. Network Centric Manufacturing

5. What You Can Do

6. Key Points

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1. U.S. Manufacturing Numbers Positive

Profitability returned to that of the late 90’s boom years

Overall U.S. output of manufactured goods highest ever

Productivity increased, & must continue to do so in today’s hyper-competitive global economy

BUT, Jobs in manufacturing recently decreasing Inevitable result of increased productivity when

demand does not increase even faster

Some implications to you in later slides

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Inescapable Trend & US Competitive Advantage

Products that can be well defined & packaged: Will tend to be sourced off-shore due to:

Significant labor cost advantage Portability with IT technology Tough because US labor costs will never be lowest

US competitive advantage has been & must continue to be:

Technology Creation (American Ingenuity) and Manufacturing Know-how to commercialize it quickly

into a constant stream of new & valuable products

This is the engine for our economic future, and

the key to our national security

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Productivity Must Continue to Increase

Increasingly “hyper-competitive” global economy, As more nations strive to develop their economies

Consumer pressures for higher quality, content and customization at lower prices

Inevitable fluctuations in the economy

Because we are a smaller nation, we must be more innovative, creative & productive if we are to remain a world power

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Metrics for Healthy U.S. Manufacturing

Not just how many manufacturing jobs Essential to people involved, but measures only input Especially with less experienced workforce, output is

really critical

Similarly, % of GDP is misleading; for example: New components of GDP mean lower % of GDP for

manufacturing even if absolute manufacturing output holds steady; e.g., Homeland Security, Telecom, etc.

More important are manufacturing output increases from: Unimaginable new industries with undefined new jobs

as a result of R&D, both public & private Advanced Processes, Robotic Automation, Lean,

6-Sigma, Just-in-Time, etc.

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Inescapable trends

The need for increased productivity by definition means

producing more with fewer people

Thus, an inevitable reduction in the number of manufacturing jobs Similar to agriculture in the past, but not as severe Skills & experience loss + increasing technology

requires well-trained workers & lifelong learning

Requires innovation in both product & process development & deployment, as well as workforce issues

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NACFAM’s Focus NACFAM works on Manufacturing issues:

Workforce Technology Supply Chain Sustainability

Manufacturer issues are covered by NAM, et al: Taxes Trade Tort Energy Health Care Pensions Regulations

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2. Workforce Implications

Demographics – by 2018 (11 years from now!): 70 million baby boomers will retire About half of them are in today’s US workforce That means skills & experience of roughly 1/4 of today’s

workforce will be lost in the next decade Manufacturing more than 1/4 due to older workforce

Overall population growing, plus those retiring “Baby Boomers” are more demanding; means more output

More output with less skilled & experienced workers means: Continuously more advanced process technologies,

requiring life-long learning to deploy them effectively Well-trained workers; knowledge must replace experience

BIG challenge for education systems & workers

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Worker Implications

Because of the demands on businesses, workers of the future at all levels must be enabled to work in a more “Network-centric” way with: More skills in Science, Technology, Engineering &

Math (STEM) Collaboration skills for teamwork, inside & outside

their company Creativity, analytic & problem solving skills, for

greater innovation in product & process Continuous updating of all these skills to be:

The best they can be for their current employer Easily mobile to other jobs in new industries

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To Help US Workers, Government Must:

Encourage & enable workers to continuously learn so they can update & increase all of their skills

Not just try to preserve old jobs, but rather:

Devise innovative ways to minimize unemployment

Creatively mitigate inevitable short-term displacements in a growing economy

Make its policies & programs for manufacturing the most competitive & accessible, versus other countries

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To Help US Workers, Educators Must:

Help define and understand 21st century demands on the workforce as required to maintain: Our standard of living, and Our World leadership

Collaborate with industry to understand its needs, both current & future

Respond to all these needs effectively

Collaborate with government to innovatively optimize the return on public dollars they spend

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To Help US Workers & Themselves, Companies Must:

Understand that Government & Education will take time to achieve objectives for a competitive 21st century workforce

Therefore, manufacturers must hedge by doing all they can for themselves & their employees, including innovation in: Recruiting new workers, both entering & displaced Retaining existing workers through empowerment to

accomplish meaningful goals, competitive compensation policies, & trust that they truly want to contribute

Training of incumbent workers to continuously upgrade their skills as well as experience

Utilizing employees past their traditional retirement age Leveraging foreign labor w/o losing US competitiveness

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Workforce Tools Available to Companies

Manufacturing Skill Standards Council (MSSC) Industry & labor led, with education & government Focused on production workers & first-line supervisors Covers all manufacturing industries Validated standards, assessments, certification process Textbook & curriculum to prepare workers for testing

Benefits – Employers know what they are getting – Employees’ credentials document their

skills – Educators know what to teach

Advanced Manufacturing Competency Model (AMCM - DOL) Industry & Government led Tied to existing manufacturing standards, including:

AWS (welding), NIMS (metalworking), MSSC, etc. Used to describe needed competencies & for DOL grants

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Workforce Tools Available, cont.

Career Cluster Initiative (DOEd) Industry, education & government NACFAM brokering collaboration to tie to MSSC, AMCM Aimed at providing career paths & curriculum for them to

State Directors of Technical Education

STEM Talent Development Regional Conferences Led by MEP centers so far; NACFAM brokers & organizes Include industry, labor, education & government For example, Philadelphia regional conference

170 attendees paid money to come Determined what needed to be done by whom with

whom in Washington, the region, states, local, etc. Within two weeks set up a “Regional Compact” to

drive action in detail All without spending one dollar of taxpayer money!

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3. Process Technology Developments

Disruptive Technologies per NACFAM 2005 Report Industry executives views on disruptive potential & likely

impact on national security & economic growth Disruptive defined as “Technological developments that

have reached sufficient critical mass or ‘tipping point’ to cause a significant proportion of manufacturers to fundamentally alter their planning, operations, structure or processes.”

Seven Categories Identified: Sensors Micro-fabrication & Nano-fabrication Modeling & Simulation Reconfigurable Tools & Systems Smart Systems Solid Free Form Fabrication (SFFF) Visualization, Planning, & Knowledge Management

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Next Generation Manufacturing Technology Initiative (NGMTI)

Purpose:Accelerate development & implementation of breakthrough technologies for defense industrial base transformation & global competitiveness of US-based manufacturing

Thrust Areas: Emerging Process Technologies Model Based Enterprise Safe, Secure, Reliable & Sustainable Manufacturing Power RF Modules Intelligent Systems Enterprise Integration Knowledge Applications

Strategic Investment Plans – “Technology roadmap”, prioritization & business case to guide investments Done for first three (3) thrust areas; more to follow

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NGMTI, cont.

Projects – Coalitions to prove out candidate technologies & establish business case for widespread deployment: Defense Battery Supply Base Manufacturing Risk (done) Fuel Cells Manufacturing Roadmap (done) Advanced Aerospace Casting Processes Lightweight Composites for Tactical Military Vehicles Digital Direct Manufacturing Low-cost Titanium Powder Production Dual Fuel Cells Manufacturing Materials for Personnel Extremity Protection Electro-Mechanical Industry Model-based Product-driven Product & Process Design Friction Stir Joining Technologies Multi-Enterprise Collaboration Information Delivery to Point of Use (info: www.ngmti.org)

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Interagency Wkg. Grp. (IWG) for Manufacturing R&D

Under NSTC; chaired by NIST MEL Members include virtually all Federal R&D agencies; i.e.:

DOA, DOC, DOD, DOEd, DOEn, DHS, DOL, DOT, EPA, NIH, NASA, NSF, OSTP, OMB, SBA

Priorities for coordinating multidisciplinary focus: Intelligent & Integrated Manufacturing Systems (IIMS) Manufacturing for the Hydrogen Economy Nanomanufacturing

Acts as forum within NSTC: Provides policy, program & budget recommendations Promotes exchange of information Reports to the President (website N/A)

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NACFAM Technology & Innovation Initiative

Came out of NACFAM June 27-28 Annual Meeting Goal – Accelerate innovation thru multi-stakeholder

collaborations (like SEMATECH, USCAR, UTC-Britain) Criteria – Mega Problem, Multi-sector, Need for Open

collaboration, Societal benefits or National threats

Draft List of “Mega Problems” for manufacturing technologies Sustainable or green manufacturing Energy diversity / security Large defense projects Defense Sustainment Activities STEM & Workforce Water Hydrogen economy Possible fits – Nanotechnology, Intelligent & Integrated

manufacturing, Ergonomics, Robotics / Automation

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4. Future Shape of Manufacturing

Biggest Trend:

OEMs becoming assemblers or integrators of systems, subsystems and components manufactured & engineered by their supply chain; i.e., the “Network”

“Network Centric Manufacturing”

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Network Centric

“Your … Network Makes

All the Difference”

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Network Centric

“Your … Network Makes

All the Difference”“All the Forces

Act as One”

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Network Centric

Terminology for a Reason

Not net centric; i.e., we don’t mean just the Internet, which is for data & information

We do mean network, which is for people, organizations,

companies

For example, one multi-billion $ company said IT is a really big deal, but it’s about 20% of the solution;

80% is the people, the relationships, the trust

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Network Centric Manufacturing (NCM) Challenges

Trust for Sure

Trust among & between people, companies, labor, government, education, associations, NGOs, etc.

How do we do that when it seems to be going the other way in DC, the UN, the WTO, etc.?

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NCM Challenges (cont.)

Not Just Collaboration, but “Intense Collaboration”

More than just Internet based, or IT based

Must flow from real trust & mutual commitment

Required to optimize the entire network Not just the OEM, nor even just for the customer Not just the OEM, suppliers & customer, but also

governments, educators, NGOs, etc.

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Advanced Manufacturing “Intense Collaboration”

Industry(OEM’s & Suppliers)

Federal Government

(Many Executive Agencies & Congressional Committees,Caucuses, Task Forces, etc.)

Facilitators (State Governments,

Universities, Community Colleges, K-12 Systems,Associations, Non-Profits)

NACFAM

Above-the-line, industry can, and/or wants to,do it by themselves;e.g., for proprietaryor other reasons

Below-the-line, requires “intense collaboration”to leverage resources; e.g., STEM talent development

NACFAMBrokers “intensecollaboration”in overlap areas

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OEM

SMM

SMM

SMM

OEM

SMM

SMM

SMM

SMM

NCM More than just Defense

SMM

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OEM

OEM

Army

Navy DLA

OEM

p

Indirect Effects: What about the rest of the supply base?

OEM

p p p

p

p

p

p

MORE IMPORTANTLY:HOW DO GAPS IN COLLABORATION AND CONNECTIVITY IMPACT THE ENTIRE NETWORK? • NETWORK ENVIRONMENT• PUBLIC SECTOR NETWORK INTERFACE• ENABLERS

NCM Challenges – National Infrastructure Complexity

Air Force

p

p

p

p

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OEM

OEM

DOD (Pentagon?)

OEM

Office of TechTransition

MEP

OEM

National Infrastructure Complexity (cont.)

Miltech

DOD Labs

MT State

Ohio

TechsolvePD Offering

DOL

???

EPANSFStates/

UniversitiesNIST

ATP / TIP

ALIGNMENT OF“PUBLIC

ENTERPRISE”

Associations

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National Infrastructure Requirements

Easier Access to the Myriad Government Agencies, Policies, Programs, Regulations Affecting Manufacturing

& NCM; e.g., GAO Reported in May, 2007: 5 Interagency Activities & 15 Programs Specifically for

Manufacturers An Additional 15 Interagency Activities & 239 Programs

for the business sector in general, most of which apply

also to manufacturing

Alignment of Federal Government programs with: The real needs of the NCM extended enterprises, & Across Federal Agencies

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DOD, Network Centric Manufacturing & IWGs

DOD Drives Most of What Federal Government Does in Manufacturing because it is: Multi-billion $ Customer of Manufacturing Companies Dependent on Large, Medium & Small Manufacturers

for Much Technology & Innovation Network Centric Manufacturing (NCM) is:

Exciting & Necessary in the Complexity of the 21st Century Hyper-Competitive Global Economy

A Theme Manufacturing Can Rally Around

IWGs Need Such an Over-reaching Theme To Lead Alignment of Individual Agency Capabilities

to Help Make US Manufacturing Globally Competitive

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NCM Challenges -- SMMs

SMM Capabilities throughout the Supply Network

Over 300,000 smaller manufacturers (SMMs) in USA

SMMs face the same challenges as OEMs, but without the resources of big companies to cope

Therefore SMMs Require Support in Many Areas

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SME 1

SME 3 SME 4 SME 5SME 2 SME 6

SME 7 SME 8

NCMSM Enterpriseinfrastructure provided bythe Doyle Center

Customer

Qualified Manufacturer

s

Lead Qualified Manufacturer

Enterprise Example for SMMs

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Applications for SMM Enterprise Example

Rapid Response for Legacy Parts:

addressing situations where expensive or critical capital equipment remains out of service due to spare part unavailability

Manufacturing Readiness & Launch

providing technology tools and consulting services to engineering oriented organizations to assist in the transition from a design to a manufacturing environment

(Contact: Dennis Thompsondthompson@doylecenter.org)

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5. What You Can Do!

For OEMs & SMMs, competitiveness comes from: Innovation -- new technologies, products, processes Faster times to market with the resulting products The help of the entire network

Requires robust manufacturing capabilities at all tiers: Supply network skills in collaboration & “orchestration” Creative workforce recruiting, hiring, development &

retention policies Increasingly in corporate citizenship, including

sustainable, green manufacturing, etc. Innovative process development & deployment

This is where you come in !

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What Progressive Companies Must Do

Government at best will take time to achieve its strategy for US manufacturing; at worst it will not get much done

Therefore, manufacturers must hedge by doing all they can for themselves, including: Innovative Workforce Policies Network Centric Supply Chain Skills & Practices Lower Cost Sustainable & Green Manufacturing Processes Productivity Increases through Innovative Technology

New Processes, Automation, etc., can offset low cost labor This can solve the issue of US manufacturing

competitiveness for many companies, small & large ! BUT, Total Costs, not just cheap labor, must be considered

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Traditional Cost Comparison

Starts with the piece part cost for a domestic product

Compares this with the piece part cost for the same item in India or China They will almost always be lower

Adds the cost of freight to get it to the customer

( What we call “Tip of the Iceberg” costs )

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Realistic Cost Comparison

1. Material 2. Labor

3. Other 4. Freight

5. Inventory 6. Insurance

7. Quality 8. Vendor Selection

9. Travel 10. Infrastructure Risk

( More like “The Whole Iceberg” of costs,but there’s even more! )

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Other Costs to Recognize to “Save Your Factory”

11. Legal Issues12. Theft, Piracy13. Additional Paperwork14. Lost Employee Morale15. Culture & Communication Difficulties16. Loss of Manufacturing Control & Flexibility17. Higher Training Costs18. Underestimation of Startup Costs19. Increasing Costs as the Vendor Matures20. Transition Costs21. Severance & Layoff Costs22. Cost of Managing Offshore23. Cost of Bringing It Back to the USA !!!

( when all this real cost is realized )

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$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

U.S.A China

Total Cost per Part with Manual Welding

$.84 / part

$.30/ part

(Labor + Materials)

Case Study – Arc Welding Costs

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Total Cost per Part with Robotic Versus Manual

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

Robot China

Robot + Materials Labor + Materials

$.30 / part $.30/ part

With Better Quality

Plus Transportation Cost and Delay, Duties, Risk…..

Case Study – Arc Welding Costs, cont.

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Actions to “Save Your Factory”

Manufacturing will go to the countries whose companies: Improve quality & delivery while reducing costs thru Six

Sigma, Advanced Processes, Automation, ERP, Lean, Just-in-time, Sustainable/Green Manufacturing, etc.

Slash time to commercialize product innovations Innovatively employ their workforce Intensely collaborate with their supply network Partner with government & education where possible

North America is in the best position to win the race Culture of innovation, entrepreneurship, etc. Starting to address challenges of laws, regulation, etc. Working on the paradox of “Intense Collaboration” to

succeed in the “hyper-competitive” global economy

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6. Key Points to Leave with You Today

Your Leadership is essential in today’s “Flat World”

Importance of output rather than only input In everything we do, whether for our company,

or our country

Trend to “Network Centric Manufacturing” demands of you: “Intense” collaboration & innovation especially in:

Workforce Development Process Technology Development & Deployment Supply Network Participation & “Orchestration” Skills Sustainable/Green Manufacturing

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Key Points, cont.

Leaders like you must help government understand:

In today’s constrained budget environment, focus must be not only on funding levels (input), but more importantly return on public dollars (output), e.g., for:

R&D -- New Industries & jobs from new technologies, products & processes, incl. Sustainable Manufacturing

Workforce investment, including economies of use with

regional & economic development activities

National Infrastructure to Support & Lead the Evolution of Network Centric Manufacturing

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Regarding the

National Council for Advanced Manufacturing (NACFAM)

Please contact: Eric Mittelstadt, CEO

Phone: 202-429-2220 ext. 4; Fax: 202-429-2422E-mail: mittelstadte@nacfam.org

For More Information:

Appendix

November 15, 2007

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Manufacturing in America “ing” Recommendations

Interagency, Advisory & Inter-governmental Recommendations: Manufacturing Council for Oversight & Advice

Including Subgroup on Workforce Development IWG on Manufacturing Competitiveness

Including Subgroups on Workforce & Technology Inter-Governmental Coordinating Committee IWG on Manufacturing R&D

To Identify Priorities for Future Federal Support Including Technology, Supply Chain & Sustainability

Supply Chain & SMM Recommendations: Supply Chain Initiative to Promote Access to Global Markets Support a Newly Coordinated MEP & Create a National Virtual

Network of Centers of Manufacturing Excellence Encourage SBIR & SBTT Programs to Focus on Manufacturing Explore New Avenues for Leveraging of National Labs &

Universities for the Benefit of SMMs

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“ing” Recommendations, cont.

Education & Training Recommendations: Enhance Workforce Skills for Manufacturing of the Future Establish a High School & Technical Education Partnership Initiative Establish Personal Reemployment Accounts Coordinate Economic Adjustment & Education/Training for

Manufacturing Communities Improve Delivery of Assistance for Retraining of Displaced Workers

Technology & Innovation Recommendations: Make Permanent the R & E Tax Credit R&D in New Energy Technology Review Federal R&D Funding for Generic Technologies, Engineering,

& Physical Sciences For Better Coordination & Focus on Innovation & Productivity

Strengthen Partnerships to Promote Manufacturing Tech Transfer Expand Cooperative Technical Assistance Programs on Standards Promote Standards to Better Protect Industrial Control Systems

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• Avoids work overlap & gaps

• Obtains mutual benefits

• Achieves collective results

• Permits enterprise optimization

• Efficient results • Increased time & cost savings

• Innovative & breakthrough results

• Maximum and sustainable results

• Task focus & short-term partnerships

• Project focus & medium-term partnerships

• Systems Integration focus & longer-term partnerships

• Network-centric focus & shared vision partnerships

What is “intense” collaboration?

Coordination Cooperation Collaboration “Intense” Collaboration

Coordination Cooperation Collaboration “Intense” Collaboration

Network-CentricManufacturing

StrategicSourcing

TraditionalSupply Chain

Self Reliant OEM

Innovation, P

roductivity

& Sustainability

Degree of Teamwork vs. OEM/Supplier Relationship

Degree of Teamwork

OE

M/S

up

pli

er R

elat

ion

ship

raw materials

bolts

molds, complex parts

engineered systems

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Pillars for Network-Centric Manufacturing

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rce

Ski

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Co

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ora

tive

Cu

ltu

re

En

abli

ng

Tec

hn

olo

gie

s

Su

stai

nab

ilit

y F

ocu

s

Network-Centric Manufacturing

Institutional Foundation (Rules of the Game)

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Biggest Trend - “Network Centric Manufacturing” US Competitive Edge – “NCM As A US Manufacturing Competency?”

OEM

SMM

SMM

SMM

OEM

SMM

SMMSMM

SMM

SMM

Network Centric Manufacturing:• OEMs becoming systems integrators & assemblers

• Suppliers becoming partners with new business skills and manufacturing capabilities

Benefits:• Leverage Global Capabilities, As Needed

• Improve Value to Customers

• Distribute Cost of Manufacturing

• Innovation Transitions Faster

Challenges:• Management of Network

• Collaboration and Connectivity

• Capabilities & Skills at Nodes

• Manufacturing

• Connectivity & Collaboration

• Leadership: Public and Private

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OEM

OEM

DODArmy

Navy DLA

OEM

SBIR

AirForce

DARPA,Mantech,

Etc.

p

EPADept of Labor,

Dept of Commerce,Etc.

NSF,NIST,Etc.

OEM

p pp

p

p

p

p

Why National Manufacturing Leadership Required??Launching NCM requires real collaboration within the Interagency Working Group

• NCM adds value to every US manufacturing sector • NCM touches every size and type of US manufacturing company • NCM scope includes manufacturing capabilities, skills, training, R&D, & policies• NCM outcomes have national, regional, and local impacts

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“Operating in a Network Centric World”…A Challenge Identified by Industry Executives

“Our customers expect superiority in our product performance and demand life-cycle affordability. We can’t meet their expectations from inside our own silos.”

“How we connect, how we collaborate, how we make and meet commitments, and how we structure contracts in such a network centric world will determine whether we can achieve superiority and affordability of our products.”

Ralph Heath, PresidentLM Aeronautics

Keynote Speech on December 5, 2006Defense Manufacturing Conference (DMC)

“Those who can build relationships based on intense collaboration and trust will accomplish the tasks quicker and at lower costs – and they will take home the prize.”

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Characterizing the NCM Environment

Many Stakeholders, Potential Conflicting Goals/Constraints

Different for Development, Production, & Sustainment

Network Centric Stakeholders that Are Distributed in Space, Time, & Organizational Type

Partners & Competitors; Roles May Change Over Time

Lots of Interfaces, Facts, Assumptions, Lack of Awareness

Stakeholders that Must Compromise on Requirements and Strategy; & Then Must Execute to Resulting Commitments

Lack of Understanding/Capability at the “Enterprise Network Level”

Methods, Best Practices & Proven Experience

Skills & Tools (especially for collaboration / visualization)

Metrics

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National Infrastructure – Premise & Scope

Federal actions affecting manufacturing will affect ability of US manufacturers to adopt NCM & excel at it; i.e., either: Help it Hurt it Neither; i.e., neutral

Potential National Infrastructure includes: Programs - SBIR, NIST MEP, etc. Agencies - DOC MAS, NIST MEL, etc. Federal Collaboration – IWGs, etc. Regulations - DARs, Export Controls, etc. Policies - Anti-trust, Foreign Trade, etc.

58

Complexity of Federal Support for Manufacturing

Government Support (GAO, May, 2007): 6 Interagency Activities 15 Programs Specifically for Manufacturing Additional 15 Interagency Activities & 239 Programs for

Business

Interagency Activities for Manufacturing: DOC IWG on Manufacturing Competitiveness NSTC IWG on Manufacturing R&D Green Suppliers Network (NIST, EPA) Export Market Assistance (NIST, DOC-ITA) RFID Training Assistance (NIST, DOD) TechLink and MilTech Assistance (NIST, DOD)

59

Complexity of Federal Support for Mfg. (cont.)

Programs for Manufacturing:

ManTech, NGMTI, BMPP (DOD) Manufacturing Extension Partnership (NIST MEP) MilTech (DOD) Defense Small Business Technology & Readiness Resources Program (Navy) Manufacturing Technical Assistance Production (MTAPP) Program (Air Force) Technology Insertion, Demonstration, & Evaluation (TIDE) Program (Air Force) Trade Adjustment Assistance (TAA) for Firms Program (DOC) Textiles & Apparel Program (DOC) Industrial Technologies Program (DOE ITP) Manufacturers’ Assistance, Investigational New Drug Application, & Prescription

Drug User Fee Act & Reductions for Small Business Programs (FDA) Research Program for the Manufacturing Sector (NIOSH) Domestic Food Distribution Procurements & the International Food Aid

Procurements (DOAg) Outreach to Small & Very Small Plants Program (DOAg) Partnership for Advancing Technology in Housing Initiative (HUD) Dream It. Do It, NAM campaign partially funded by DOL

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Key Points for NCM

Trend to “Network Centric Manufacturing” (NCM) demands: “Intense” collaboration, including trust & commitment Connectivity; incl. visibility, real-time common data, etc. Collaboration of Industry & Government with

infrastructure investments by both of them Challenge to Industry:

Commitment to common infrastructure requirements Collaborate on industry investments to meet them Drive Federal involvement to meet them

Challenge to Government: Align programs, policies, regulations, etc., with

NCM needs of that real industry commitment

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Competency Models

Tools for Skills Gap Analysis and Workforce Development Activities

Presentation by:

LeeSa PageDirector, Workforce Development

NACFAM

October 2007

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What is a Competency Model?

A competency model is a tool to organize the knowledge, skills and abilities an individual needs to successfully perform at work.

Competency models form the foundation for:• developing curriculum• selecting training materials• licensure and certification requirements• job descriptions• recruiting and hiring• performance reviews

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Skills: Building Blocks for Careers

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Competency Descriptions

Foundational: Personal, Academic, and Workplace Basics (i.e., dependability, math, reading, teamwork)

Industry-related: Industry-specific and Industry-wide technical skills (i.e., production, quality control)

Occupational-related: Occupation-specific technical skills and management skills (i.e., administration and management)

65

Advanced Manufacturing

- Based on the national, industry-validated Manufacturing Skill Standards Council (MSSC) skill standards, assessment and certification program for high-skill production technicians.

- Complimentary with the Career Clusters Institute “Manufacturing Pathway Plan of Study” which is also based on the MSSC standards.

66

Advanced Manufacturing

• Production • Maintenance, Installation & Repair • Manufacturing Process Development/Design • Supply Chain Management • Quality Assurance/Continuous Improvement • Health & Safety

67

Competency Models are tools that enable business and industry to...

• Clearly articulate workforce needs • Define requirements for employee success on a job

and at different levels of career progression• Increase the likelihood that qualified candidates will

be hired• Place individuals into appropriate assignments once

they are hired• Provide a shared understanding of what will be

measured in performance appraisals• Facilitate performance appraisal discussions

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Competency Models are tools that enable business and industry to...

• Focus on the knowledge, skills and abilities that have the most impact on effectiveness and

productivity• Ensure training and development efforts and investments are in line with organizational values and vision• Guide employee development efforts• Focus training and development efforts on areas where there are significant deficiencies• Provide a framework for ongoing coaching and mentoring• Identify gaps in current training offerings

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So How Do I Use It?

Resource Site: Competency Model Clearinghousehttp://www.careeronestop.org/COMPETENCYMODEL/default.aspx

• Find validated industry workforce requirements• Develop your own workforce requirements skill

sets based on these requirements• Find industry certifications, curriculum and

training resources to support education/training needs

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What are the benefits?

- Streamline your hiring/selection process- Save time and money using a tool that has been

developed and validated by industry- Keep up with industry requirements for high

skill technicians