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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
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
1/26/2012
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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.
1/26/2012
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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.
1/26/2012
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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
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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
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
1/26/2012
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13
TBM
Take Back Manufacturing
www.SME-TBM.org
WWW.SMETORONTO.CA
Canadian Manufacturing Technology Show 2011 Toronto www.cmts.ca
1/26/2012
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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.
Take Back Manufacturing
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…
Take Back Manufacturing
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17
So…the need for TBM should resonate now ….
………more than ever!!
Take Back Manufacturing
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.
Take Back Manufacturing
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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
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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
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Take Back Manufacturing
FOR OUR KIDS!
23
It’s only a game!!!
24
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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
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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
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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?
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China is a state managed economy and does not have the burden of democracy!!
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Declining
Out Of Balance
Negative Trend
CA
NA
DA
Prosperity factor
34
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(GDP=1350B)
10% GDP
CA
NA
DA
1% GDP
2% GDP
Worse than USA numbers!!!
Canada/World
35
Ontario Economic Performance
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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
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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
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Offshore content has increased
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Capital misappropriation??
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SERVICE JOBS????
2010 9%
Almost 500,000 jobs lost
in last 6 years
46
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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
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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
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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
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
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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 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
Resource/Product transfer
The Global Competitive gap
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
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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
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The Global Competitive gap
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
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 !!!
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The Global Competitive gap
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
LEAN OVER CAPACITY LEAN/PROCESS INNOVATION
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
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The Global Competitive gap
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)
LEAN OVER CAPACITY LEAN/PROCESS INNOVATION
INFLATION/OIL/EXCHANGE PRESSURE
OVER CAPACITY
New Trade agreements
But may not be written any differently
61
ONGOING RESOURCE/PRODUCT TRANSFER GLOBALIZATION
INSANITY
62
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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
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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
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BUSINESS PROCESS CYCLETIME (weeks)
$ cost
Offshore labor value adding?
RESOURCES TRANSIT PRODN TRANSIT DISTRIBUTION
AREA under this curve is trapped opportunity cost
COST TIME PROFILE REVIEW
67
Mature Economy
Global Supply Chain 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
68
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Domestic Supply Chain Mine
Process
Ship to Primary plant
Process
Distribute to Secondary manufacture
Manufacture
Ship to distribution
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
COST TIME PROFILE REVIEW
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
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BUSINESS PROCESS CYCLETIME (weeks)
$ cost COST TIME PROFILE REVIEW
GLOBAL SUPPLY CHAIN BASELINE
DOMESTIC SUPPLY CHAIN BASELINE
IMPACT OF HIGHER INTEREST RATE CASH TRAPPED IN GLOBAL INVENTORY
71
BUSINESS PROCESS CYCLETIME (weeks)
$ cost COST TIME PROFILE REVIEW
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
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BUSINESS PROCESS CYCLETIME (weeks)
$ cost COST TIME PROFILE REVIEW
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
BUSINESS PROCESS CYCLETIME (weeks)
$ cost COST TIME PROFILE REVIEW
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
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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?
VERY Short Cycle Time
(Re-Balanced)
BALANCED TRADE BALANCED SOURCING
HEALTHCARE
EDUCATION TRAINING INNOVATION 75
Domestic Supply Chain
Mature Economy
VERY Short Cycle Time
(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
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Domestic Supply Chain
Mature Economy
VERY Short Cycle Time
(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
Resource/Product transfer
78
IP/FRANCHISE Transfer
Intra-Country Trade balance Must be a prime Performance directive.
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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
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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!!
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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 VERSUS LOCAL MANUFACTURING BY % LABOR CONTENT
(SINGLE LEVEL COMPONENT)
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
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90 70 10 50 30 40 20 60 80
% LABOR CONTENT
Post LCC Escalation Period
OFFSHORE VERSUS LOCAL MANUFACTURING BY % LABOR CONTENT
(SINGLE LEVEL COMPONENT)
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)
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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
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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
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
90
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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
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Looks like TBM !!!
BUT
Are we ready???.....
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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!!
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THE TBM
ROADMAP
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Take Back Manufacturing ROADMAP
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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
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
98
Government Concurrence
TRADE SHOWS
Support local Government
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.
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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!!!
Take Back Manufacturing
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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
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
102
Government Concurrence
TRADE SHOWS
Trade Shows
Ongoing
Forum Members
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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
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
Capitalization Tools
Other Initiatives TBD
TBM Awareness presentations
Phase1
Phase 2 Phase 3
104
Government Concurrence
TRADE SHOWS
Trade Shows
Ongoing
SME/Other Associations
SME/TBM
2012
Events
1/26/2012
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The SME Knowledge Roadmap…..
105
SME TBM
Survey
SOFTWARE
MEET KNOW GROW
Your TBM ROADMAP YOUR TBM EVOLUTION
PLAN
THOUGHT-WARE HARDWARE
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
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The SME Knowledge Evolution Plan
107
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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
SME networking for success
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.
The SME Knowledge Evolution Plan
108
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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
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
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The SME Knowledge Evolution Plan
109
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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
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
The SME Knowledge Evolution Plan
110
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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
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
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The SME Knowledge Evolution Plan
111
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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
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.
The SME Knowledge Evolution Plan
112
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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
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
The SME Knowledge Evolution Plan
113
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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 Distribution and Inventory management Global logistics systems Inventory management systems
The SME Knowledge Evolution Plan
114
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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 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
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The SME Knowledge Evolution Plan
115
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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 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.
The SME Knowledge Evolution Plan
116
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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 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
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The SME Knowledge Evolution Plan
117
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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 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.
The SME Knowledge Evolution Plan
118
SME networking for success
Business Process improvement
Strategic planning/Innovation
New Product Introduction
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
60
The SME Knowledge Roadmap…..
119
SME TBM
Survey
SOFTWARE
MEET KNOW GROW
Your TBM ROADMAP YOUR TBM EVOLUTION
PLAN
THOUGHT-WARE HARDWARE
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
120
Government Concurrence
TRADE SHOWS
Support local Government
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
Take Back Manufacturing