Society of Manufacturing Engineers SME Torontopresentation...6/7/2014 1 SME Toronto Nigel Southway...

6/7/2014

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SME Toronto Nigel Southway SME Chapter Secretary/Past Chair 2012/2013

Toronto Chapter

Society of Manufacturing Engineers

WWW.SMETORONTO.CA

Advocate for the Take Back Manufacturing Initiative

About SME:

The Society of Manufacturing Engineers

Premier source for manufacturing knowledge, education and networking.

Connecting manufacturing practitioners together.

Provide Tradeshow , Expo and network events.

Reviews latest manufacturing technologies/processes/techniques/practices.

SME world-wide supported network of Chapters and technical communities.

Many programs, events, magazines, publications, huge technical database and online training ….

SME leader in manufacturing workforce Education/training/skill development.

SME is a LEAN Business Certification Authority.

www.sme.org.

WWW.SMETORONTO.CA $125 per Year

Toronto Chapter

http://www.sme.org/

http://www.smetoronto.ca/

http://www.sme.org/

http://www.sme.org/

6/7/2014

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TBM

Take Back Manufacturing

A Forum Dedicated to Restoring

our Manufacturing Sectors.

A HUGE CHALLENGE!!!

TBM

Take Back Manufacturing WWW.SME-TBM.ORG

www.SME-TBM.org

Vision of the reality

The Global Outlook

The Future Challenge

TBM


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



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Manufacturing and Engineering has been a good career

for a lot of us!!

It’s been good to me!

NIGEL SOUTHWAY

• 40 years Broad Business and Manufacturing Experience

• British Engineering Apprentice…Aerospace/Electronics (1966)

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

• Manufacturing Engineer (1972) British Aerospace/SPAR

• MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation (1980,s)

• Engineer / Manager / Director / VP Operations

• Change Agent/Educator/Coach/Advisor for LEAN/Six Sigma

• AUTHOR : CYCLE TIME MANAGEMENT… Fast Track to Productivity Improvement

• Consulted / Directed many organizations in different industry sectors.

www.nigelsouthway

(1992)

Automotive, Aerospace, Avionics, High-tech and consumer Electronics,

Pharmaceuticals, Food, Beverage. Consumer Products and Appliances,

Steel, Fabrication, Mining, Resource extraction equipment, Construction, Off-road equipment, Service and Financial Industries.

LEAN THINKING

• Assisted many Global Sourcing programs and Joint Ventures (2004 Onward)

• Society Manufacturing Engineers …Chair 2012/13 Toronto

http://www.nigelsouthway/

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Supported Clients World Wide on LEAN THINKING & Productivity Improvement.

• Electronic assembly • Meat processing plant.. • Metal fabrications • HVAC Manufacturing • Toothpaste manufacturing • Steel mill processes • Bank check clearing house • US army medical Corp • Whiskey distilling • Dry-cell battery production • Credit card emboss house • Electrical products • Custom Power-Supplies • Computer design/manufacture • Sheet-metal fabricators • Plastic injection molding • Truck Components supplier • Construction equipment • Oil industry equipment providers • Aerospace equipment providers • Soap factory

• Bubblegum and candy factory • Food additive producer • Data-com system provider • Computer software developer • Mint (Coins and Medals) • Security equipment • Off-road equipment • Water pipeline manufacturer • Exhaust System Manufacturing • Commercial swimming pool manufacturing • Auto dealerships • Medical equipment Design/Manufacturer • Oil extraction equipment manufactures • Nano-tech Battery Manufacturing • Automotive parts supplier • Generic drug manufacturer • Vaccine Development and Manufacturing • Robotic Medical surgical devices • Commercial Heating Equipment

NEXUS Canada / USA / Mexico / UK / China / Russia / India / Ukraine

8

NAFTA Manufacturing Expansion…To a LCC (Low Cost Country)

MEXICO 1996 to 2002 A Maquiladora or Maquila (used interchangeably) is a plant in Mexico that retains a Maquiladora

Permit from the Mexican government to import raw materials duty free into Mexico for manufacturing,

assembly, repair or other processing. The foreign company must agree to re-export a majority of its

production.

• Low cost labor: Wages range from 15% to 25% of comparable

rates in the U.S. Normal work week is 48 hours. Productivity often exceeds

the U.S. rates.(U.S. Bureau of Labor)

• Favorable duty/tax treatment: Southbound, the Mexican

government allows duty-free imports of all materials and machinery needed

for the plant. Northbound, many North American sourced products are now

duty free under NAFTA.

• 100% Ownership of subsidiary: Leaves total control for

all operations in the hands of the parent. There are professional services

available to handle such matters as personnel, accounting and import/export

management.

• Proximity to U.S.: Lower turnaround times compared to other

low labor rate countries, lower transportation costs, and the ability for

managers or skilled technicians to commute on a daily basis to the Mexican

facilities is possible in the border areas.

• Access to the Mexican Market: Maquilas may sell part of

their previous years export output in Mexico’s 107 Million person consumer

market .

Also…

Free trade with EU and other trade jurisdictions with registered Mexican subsidiary status. And tax compliance

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GLOBALIZED MANUFACTURING

2004 Onward

CANADA MANUFACTURING

10 The future of Manufacturing in Ontario’s economy.

A NORTH AMERICAN PROBLEM

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TBM


www.SME-TBM.org

A Forum Dedicated to Restoring

our Manufacturing Sectors.

25 Technical Associations

3 Trade associations

5 Educational policy makers

7 Media experts

3 Local government reps

5 Industry experts

TBM


WWW.SME-TBM.ORG

12 M

TBM




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TBM…Our Ultimate Goal

13

Work together ….

Government, Education organizations Industry leaders ROADMAP……..Recover our future industrial capability …… and therefore our future prosperity.

TBM


WWW.SME-TBM.ORG

CMTS Toronto Canada October 2011 SME Annual Conference Cleveland USA June 2012 Many Society and Association events in 2012/13

Presentations.... TAKE BACK MANUFACTURING

M

Raising the Awareness

TBM

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http://www.canadianmanufacturing.com/fabrication/production/taking-back-manufacturing-51066

http://sme-tbm.org/app/download/5809147904/PEO+TBM+article.pdf

Professional Engineers Ontario

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17

18

BNN BUSINESS NEWS NETWORK

What can Canada learn from German Manufacturing?

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WHY?..Take Back Manufacturing FOR OUR KIDS!!

19

TBM


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Our Kids will think we don't make things!!!

This is NOT a game!!!...

? ? ? ?

http://www.therrrink.com/images/yhockey/YouthHockey.jpg

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GLOBALIZED

MANUFACTURING

? ? We Question its future Sustainability

Moved Off-shore…..

22

Textiles

Furniture

Footwear

Electronics AUTO PARTS

Appliances

Plastic goods

Equipment metalwork Fittings Foods

Un-controlled trade….. “herd behavior”

For low cost labor rates

15% Reduction in Manufacturing Intensity in the last decade

TBM

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2009 2010 2011

CANADA

More than 500,000 jobs lost in 6 year period (300,000 Ontario)

25% job Reduction (Quantity / Quality)

Only 25000 jobs added in Resource Sector

TBM

50% of Manf SME’s lost in Ontario

10% Productivity Loss Due to reduced

Capacity utilization

Yet …. It’s argued we have skill shortage!!! (NOT a labor shortage)

1,000,000 Young Canadians

Now un or under employed!! Redeployed to part time

and lower paying service jobs

Source: Statistics Canada

What happened?

24

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- 1% GDP

25

OUR BIG BROTHER

(US GDP 2010=14000B)

US

A

Economists started to follow an almost

Religious and fanatical view of free market doctrine

Globalized Trade

-1% GDP

26

OUR BIG BROTHER

(US GDP 2010=14000B)

US

A

Free Market forces… Chased Emerging Markets Used liberalized Trade approach Removed barriers and controls Accepted Out of Balance Trade. Assumed More Service Sector Jobs???? Assumed local exports would grow/balance

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Global Trade Balance Imbalance

27

Global Trade Balance Imbalance

28

The Age of Globalization and Over-Supply

Uncontrolled Trade Balance has allowed emerging economies via corporations almost

unlimited access to mature economy consumers.

Means…

Significant increase in the global labor supply without adequate controls.

Means…

Significant Job loss in the mature economies and increased inequality

Free global flow of excess financialized capital/cheap money forcing down interest rates ….

Irresponsible and non value added investment, lending and borrowing practices.

Significant Loss of National government control of local Economies.

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- 4% GDP

Globalized Trade

Cumulative Deficit is now 50% 2010 GDP

-1% GDP

29 (US GDP 2010=14000B)

Significant government deficit and foreign borrowing

US

A

HUGE ONGOING TRADE IMBALANCE

(GDP=1350B)

-10% GDP

CA

NA

DA

-1% GDP

-2% GDP

Worse than USA numbers!!!

Canada/World

30

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-1% GDP

31

Declining

Prosperity INDEX

CA

NA

DA

We have lost our BALANCE to remain Productive.

It is not that we are less productive.. but more about having idle capacity!

Emerging Market

Resource Demand

Dependent

32

?

Any ratio far above 1.5 is an issue

EAST WEST

TBM

Major UNDER-employment

About 12.5%

Youth under-employment 20+%

We need jobs! (Agreed that some skill mix is an issue)

???

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Ontario Economic Performance

How has Globalized

Manufacturing

Affected our Province?

M

13% GDP & 15% Employment

ONTARIO

Reduction

Intensity

Gap

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Offshore content has increased

Reduced Manufacturing intensity

Declining

Capital

Investment

(70% LESS)

Reduced Investment trends will mean 25%

further decline in the next decade

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SERVICE JOBS????

? ?

? ?

Significant “out-shoring” in some of these sectors

(1 Manf Job = 3 Service Jobs)

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Large Out-of-Balance Trade Gap…. -15% of GDP.

Unbalanced Revenue

Flat to low growth … so recovery difficult.

Business and Job loss….. no real plan to fix.

Under- Capitalization and low technology investment…

Productivity loss (Utilization loss)

Erosion of skills and knowledge

Apathy and no vision for the future!

Summary

We are now a “have-not” Province! M

40

OUR ECONOMY NEEDS MANUFACTURING!

It is VERY obvious that we need a Balanced Economy

(Resources/Services/Manufacturing)

TBM


Not all Politicians Economists and Bankers agree or support this!

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So what’s next?

41

We need a critical mass of awareness by every-one

to force action taking to recover our future……

THE GAME CHANGER!

GLOBALIZED

MANUFACTURING

? ? TBM Positional Paper on the Waste in a Global Supply Chain

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43

Waste of VERY Expensive Bunker Fuel

Much Non-Value-Adding Inventory

PURE WASTE

44

Waste of VERY Expensive Bunker Fuel

This low grade bunker fuel is used by the worlds 90,000 cargo ships

A single large container ship emits pollutants equivalent to 50 million cars.

Total container ship pollution is 6 times that of the TOTAL cars in world

2,000 times the amount of sulfur compared to diesel automobiles.

Container ships account for 90% of global trade by volume.

Our Economies will be jeopardized by this global warming enabler

VERY LARGE CARBON FOOTPRINT

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45

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

We will not run out of Oil…

but ….

We will run out of Oil

we can afford to burn!!

46

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

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The end of cheap China

What do soaring Chinese wages mean for global manufacturing? Mar 10th 2012 | HONG KONG AND SHENZHEN | from the print edition

CHINA … Low Cost Country?

WEALTH TRANSFER???

GLOBALIZED

MANUFACTURING

? ? START THINKING LEAN & GREEN

?

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49

GLOBAL SUPPLY CHAIN

Localized TRADE Bloc

LEAN Review of Trading Models

GLOBAL SUPPLY CHAIN

CHINA/ASIA Manufacturing

recycle loop

Canada

USA

9000 km Each way MIN

6 weeks Transit Inventory MIN

$100/M cube to transport MIN

Many Transactions / Handling……

Much Waste of Natural Resource’s 50

HIGH WASTE

NOT LEAN

NOT GREEN

Dig Resources

Ship resources

Dock resources

Use Resources

Ship products

Dock products

Ship

Store

ship

Sell

Process


SCRAP

$

NOW

When Interest rates are “normalized”

we will have a “High cost of Inventory trap”

Cost Drivers

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GLOBAL SUPPLY CHAIN

CHINA/ASIA Manufacturing

recycle loop

Canada

USA

9000 km Each way MIN

6 weeks Transit Inventory MIN

$100/M cube to transport MIN

Many Transactions / Handling……

Much Waste of Natural Resource’s 51

HIGH WASTE

NOT LEAN

NOT GREEN

Dig Resources

Ship resources

Dock resources

Use Resources

Ship products

Dock products

Ship

Store

ship

Sell

Process


SCRAP

$

NOW

When Interest rates are “normalized”

we will have a “High cost of Inventory trap”

Cost Drivers

INSANITY

52

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GLOBALIZED

MANUFACTURING

? ?

GLOBALIZED

MANUFACTURING

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Canada

USA

55


LEAN & GREEN

Intrinsically less wasteful

Short Supply Chains

FAST RESPONSE

to customers

Local Manufacturing

Strong Incubator

for INNOVATION Balanced Trade

1000 km Each way MAX

1 week Transit Inventory Max

$10/M cube to transport Max

Few Transactions Minimal Inventory/Interest rate exposure

BALANCED ECONOMY Localized TRADE Bloc

HEALTHCARE

EDUCATION TRAINING

We have

“Run the Numbers”

56

USED

BALANCED SOURCING

MODELS

Every Engineer should understand business costing and economics!!!


TBM

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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

We built Cost Trade-off Models … LOCAL versus Off-shore

BALANCED SOURCING

BA

LA

NC

ED

LA

ND

ED

CO

ST

LO

CA

L

BE

ST

OF

F-S

HO

RE

WO

RS

T O

FF

-SH

OR

E

?

OFFSHORE SAVINGS CAN GO POSITIVE OR VERY NEGATIVE

OFFSHORE LOCAL

58

Material

DIRECT

OVER HEAD

OH

Balanced Source Landed Cost Comparison

LOCAL

Material

OFFSHORE

Transportation

Other

Duty

Inventory costs

Support costs COPQ

Material

OFFSHORE 2015

DIRECT OH

DIRECT

10%

20%

30% +

+

+

+ +

+

2012 2011

Tipping Point

RESHORE

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LO

CA

L

BE

ST

OF

F-S

HO

RE

WO

RS

T O

FF

-SH

OR

E

?

Boston Consulting Group (BCG)…… Predict BALANCED LANDED COST parity by 2015 in most sectors

The REAL Costs to Manufacture OFF-SHORE will be projected to rise.

Due to:

Exchange, tariffs, Labor wage inflation, Product Quality Cost escalation

Transportation costs, Customer location Inventory costs, Ease of doing business,

Many Other hidden drivers….

OFFSHORE LOCAL

BALANCED SOURCING

Validated Cost Trade-off Models … LOCAL versus Off-shore

COMBINED OPERATIONS


TBM

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LO

CA

L

BE

ST

OF

F-S

HO

RE

WO

RS

T O

FF

-SH

OR

E

?

Boston Consulting Group (BCG)…… Predict BALANCED LANDED COST parity by 2015 in most sectors

The REAL Costs to Manufacture OFF-SHORE will be projected to rise.

Due to:

Exchange, tariffs, Labor wage inflation, Product Quality Cost escalation

Transportation costs, Customer location Inventory costs, Ease of doing business,

Many Other hidden drivers….

OFFSHORE LOCAL

BALANCED SOURCING

Validated Cost Trade-off Models … LOCAL versus Off-shore

Reshoring Tipping point Product $ labor versus Cubic Volume

USA Economy

$ Lab

Product Cubic Volume

Offshore

Onshore

Tipping Point 2012

I Phone

Fridge

6/7/2014

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Reshoring Tipping point Product $ labor versus Cubic Volume

USA Economy

$ Lab

Product Cubic Volume

Offshore

Onshore

Tipping Point 2015

I Phone

Fridge

GLOBALIZED

MANUFACTURING

? ? START THINKING LEAN & GREEN

6/7/2014

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What is happening in the USA?

• Resurgence of Manufacturing in USA … Now at “tipping point”

via

lower US exchange rate ……………………………...

Rethinking of globalized supply

Balanced Sourcing Cost trade-off modeling

Re-shoring !!!

Reasons..

Transportation costs

Labor costs

Product quality

Customer location

Ease of doing business



via




Re-shoring !!!

Most Next generation products will Re-shore if:

Large bulk shipping cost %

Low/Mid labor content (less than 50%)

Hi Technology (Embedded Innovation)

Value adding local supply chains

Integrated with customer services

6/7/2014

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via




Re-shoring !!!

Most Next generation products will Re-shore if:

Large bulk shipping cost %

Low/Mid labor content (less than 50%)

Hi Technology (Embedded Innovation)

Value adding local supply chains

Integrated with customer services

TBM

?


via

lower US $ value ……..



Re-shoring !!!

Maybe not us with a

RESOURCE

ESCALATED

TBM

Experts are certain Manufacturing will Re-shore to North America …….

……..but not sure we will get our share in Canada!

6/7/2014

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CIM: What factors are driving manufacturers'

decisions to bring production back to Canada?

Southway: It's a North American-wide realization that

off shoring is getting more expensive with increased

transportation expense due to oil costs, as well as

labor price escalation in emerging economies. Many

corporations and large consulting groups also recognize

that there are many hidden costs and issues in supporting

a remote supply chain. In general, local manufacturing is

now considered to be no more expensive than offshore

production. The landed cost tipping point in some sectors

and commodities is projected to be reached by 2015.

Local manufacturing also offers more stability and the

ability to innovate at home more effectively. And, being

closer to the customer has added inventory and flexibility

advantages.

CIM: How can industry members communicate the

importance and value of manufacturing to the

general population?

Southway: We have had three decades of people thinking

manufacturing is bad news. Manufacturing has been

viewed as dirty and dangerous, risky and unstable

employment, and so forth. We have a lot of work to do to

change this negative image. Just talking about TBM, telling

the real story, and showing what we do will help.

If we look at the long term, today's 12- to 15-year-olds will

lead the way. When they reach 22 years old, we will have a

thriving localized manufacturing economy. It certainly won't

be based on cheap oil or energy, but it will be very lean

and very green. Things will be made in local manufacturing

hubs or clusters. Factories will be very high-tech and their

operation will demand high levels of skill and education.

All this needs vision and a can-do attitude. Not having both

of these is our biggest risk.


CANADA / US $ EXCHANGE

(Appreciated)

75 cent $

0.5

1.0 100 cent $

1985 1990 2000 2010

We did not earn it with Productivity growth!

4%

Prod

Growth

2% ?

6/7/2014

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71

CANADA / US $ EXCHANGE

(Appreciated)

75 cent $

0.5

1.0 100 cent $

1985 1990 2000 2010

90 cent $

2015

? Purchase Price Parity 81 Cent $

4%

Prod

Growth

Impact of Poor Economic footprint (Auto sector)

• Canada (Ontario) at 0.95 dollar $76/hour

• US North $85/hour

• US Mid West $67/hour

• US South $49/hour

• Mexico $18.5/hour

72

At a 0.81 dollar and a competitive business environment would be at $55/hour

Reshoring will force some geographical location changes

Loaded Factory labor rates

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Many Factors will determine Reshoring (Resource & Product Transfers)

73

Low Cost Country

Global Trade

Localized Trade Oil /transport price increases

Emerging Economy Price Inflation

Public and industrial Pressure

Interest Rate Normalization

Re-evaluated Balanced Sourcing Models

Corporate taxation adjust

Complex Supply Chain Costs

Import/Export Re-balance

Re-shoring!

Local Re-Capitalization!

Re-Hiring! / Re-training!

Government budget Re-balance

High Loonie!

The Globalization Purist!

Our Inability to Understand

And Take Action!!! M

Close proximity to customer

IP protection issues

Ease of doing business

TBM


IT WILL BE A CHALLENGE FOR CANADA

BUT SOME MANUFACTURING CAN RETURN

IF WE TAKE IT BACK

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But….Are WE Ready???

TBM

M

?

TBM

North-American Manufacturing

Prosperity for all.

Industry

TBM – The 3 Parallel Imperatives

Educators

Government

M

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TBM


Prosperity for all.

Industry


Educators

Government

M

IMPROVE POLICY

TBM

Government


M

• Ensure a BALANCED Free Trade environment. • Focused Industrial POLICY and support PLANS • Embrace Waste-Free Forms of Globalization • Avoid duplicated policy and support organizations

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Policy support for TBM

FISCAL POLICY

• Fix Canadian Dollar to get to the same “tipping point” with the USA

• Adjust Ultra low Interest Rates to a “normalized” level

• Lower taxes for investments on new products / technologies / equipment and skill training.

• Install a Global based carbon tax to reduce waste/usage of energy and combat global ineptitude

TRADE POLICY

• Embrace a return toward a Localized TRADE bloc. (Ensure all trade deals are FAIR not FREE trade based)

• Reduce Non-North America IMPORTS via Controls and better support Strategic EXPORTS

• Participate in a Knowledge Based Economy .. BUT with Improved IP controls

• Improve Canada-US border and regulatory differences

INVESTMENT POLICY

• Re-deploy capital Investment into local value adding industries.

• Simplify industry Incentives (SR&ED etc)…. hold industry 100% accountable for results

• Encourage innovation and the commercialization of new products and technologies

EDUCATION / INFRASTRUCTURE / ENERGY POLICY

• Implement Industrial Education/Training via an Integrated Apprenticeship system

• Fix our declining infrastructure (Energy/logistics/communications)

• Improve regulatory efficiency. (Make it easier to do business..safety/legal/human rights etc)

• Simplify product and process compliance requirements, remove wasted efforts.

Define BOLD Policies to …Take Back Manufacturing.

TBM

Government


M

• Ensure a BALANCED Free Trade environment. • Focused Industrial POLICY and support PLANS • Embrace Waste-Free Forms of Globalization • Avoid duplicated policy and support organizations

Consider a change to the policy making process

Hold a Policy Blitz process!!

In Ontario alone we have 18 different policy groups

feeding off the public trough

Issuing independent reports

without integrated review and closure.

Put them all in one room!.. Come out with one plan!

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TBM


IT NEEDS …

A DELIBERATE ACT

OF NATIONAL & REGIONAL…

• LEADERSHIP

• POLITICAL WILL

• PLANNING

• COMMITMENT

TBM

TBM


Prosperity for all.

Industry


Educators

Government

M

?

The Current Skill Mix Is

In Disarray And Misaligned.

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TBM


Prosperity for all.


Educators

We have become an

Over-educated

Under-trained

Redundant

Workforce!!!

• Education must better serve its citizens • Ensure it is value adding to the economy • Re-Balance Education versus Training • Integrated Industrial Learning System

84

We need a Nationwide formal system

to change the Industrial learning environment.

(Learning = Education/Training/Experience)

TBM has formed

a committee

to work on this system.

Integrated Industrial Learning System

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We can’t get there from here!

• Educational / Certification and Industrial silos

• Lack of organized system of career progression

• Lack of balance between Education/Training/Experience

• Lack of industry engagement

• Lack of government commitment (federal/provincial)

• Poor image of industrial career at teacher/parent level

• Ineffective communication with new generation

85

Need a significant reset !

Take Back Manufacturing (TBM)

Will demand the availability Of a future

manufacturing workforce that Is well-educated,

well-trained with industry experience.

High School

Current Environment

Education Institution


Work Term

Work Term


?

?

?

6/7/2014

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87

Take Back Manufacturing (TBM)

Will demand the availability Of a future

manufacturing workforce that Is well-educated,

well-trained with industry experience.

High School

Current Environment

Future IIAS Environment



Work Term

Work Term


? ?

?

High School

Education institution

Industrial Integrated Learning Contract

Work Term

Education institution

Work Term Career!

Provide education and hope they get a

job?

Place with industry and follow a career and receive focused

learning!

Integrated Learning (Education/Training/Experience)

88

Learning System


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• Integrated & Scalable Career Pathway Apprentice Journeyperson Technician Technologist

Engineer

• Industry driven Skills and Education Development Progression

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

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

• Must also support the re-training of the existing mature work-force!!

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

• Industry must lead on driving and installing this system. (Integrated support from All Governments and Educators )

• The Integrated education and training must provide a highly flexible workforce.

• DO IT!...... Before we loose the Industrial Experience of the Baby Boomers!!

Trade

Technician

Technologist

Engineer Eng Degree

Eng Diploma

Tech Certificate

Trade Certified

High school

Manufacturing

needs YOU !


TBM

TBM


Prosperity for all.

Industry


Educators

Government

M

?

Let’s Mobilize!!!

&

Let’s WIN!!!

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TBM


Educators

Industry


Prosperity for all.

Supply Chain Strategy + Productivity Improvements + Local Community Engagement

Industry Game-plan Checklist Supply Chain Strategy… Reduce intrinsic waste Run a Balanced Sourcing model…Include all cost factors … Rethink Sourcing plans within NAFTA…. US/Canada/Mexico Develop shorter supply chains where possible (NAFTA + Global) Strategize manufacturing closer to the trade bloc customer with partnerships and focused supply. Strategize manufacturing closer to the trade bloc supply (including primary resources).. Rebuild and Invest in strong local supply cluster relationships

Productivity Improvements… In all aspects of the business Re-invent business wide LEAN Thinking and a business Continuous Improvement culture Gain an aptitude for all forms of INNOVATION and commercialization tools Integrated Business systems … Ensure you have a future “Integration plan”. New process technology and capital reinvestment… Flexible Automation/Rapid Technologies. Participate in integrated Learning system to develop/retain/stabilize/mobilize your workforce.

Local Community Engagement ….. Work on the image Encourage local government to provide “business easy” infrastructure and costs Ensure engagement in applicable grants/saving programs and subsidies available to industry. Plan to minimize exposure to high energy and infrastructure costs Participate in local sustainable environment goals Re-Engineer and improve the local Manufacturing Image and value for every-one

RUN THE NUMBERS!!!

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Balanced Source Landed Cost Comparison

Material

OFFSHORE 2015

OH

DIRECT

Material

DIRECT

OVER HEAD

LOCAL

2015+

+TBM

5%+

+

+

+

+ +

+

Local Advantage?

Manufacturing has an IMAGE problem!!

Most manufacturing-based businesses are beyond dispirited….

Our Politicians/Government/Population have little understanding of business

and manufacturing…We must EDUCATE them!!

Manufacturing is deemed:

Dark, Dirty, Dangerous, Deafening and Difficult….

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….. And Smelly!

M

And….

Highly unstable as a career! ?

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95

TBM

EXCITE the NEXT GENERATION

Change ….

The Image of Manufacturing

Let’s Make Manufacturing

Via… Student days at Trade shows

Student Chapters Plant open days

JOB Fairs Key public events

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TBM

EXCITE the NEXT GENERATION

Change ….

The Image of Manufacturing

Let’s Make Manufacturing

Via… Student days at Trade shows

Student Chapters Plant open days

JOB Fairs Key public events

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TBM


Prosperity for all.

Industry


Educators

Government

IMPROVE POLICY

Hold a Policy Blitz process!!

IMPROVE Balance

Integrated Industrial

Learning system

IMPROVE & Mobilize

Supply Chain Strategy

+ Productivity Improvements

+

Local Community Engagement

Suggested Local Region Checklist 1. Work with Industry associations to fully understand these requirements………

2. Put industry where the people live who need the jobs!

3. Where possible encourage the leverage of existing local resources and supply chains

4. Make the rebuilding of small to large manufacturing facilities “easy and red tape free”.

5. Fix the high cost of energy!

6. Look at “manufacturing friendly” local taxes and tariffs

7. Ensure local legislations ( Safety/Human Resources/Environmental) are “business friendly”.

8. Ensure transportation logistics and infrastructure are competitive!

9. Encourage import avoidance as well as export enhancement!!!

10. Integrate/leverage existing clustered Industrial learning systems to provide a powerful workforce.

11. Encourage and help change the “Image” of manufacturing .. schools/teachers/public …

12. Become competitive with other NAFTA jurisdictions…… they are NOW our main competitors!!

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FOR OUR KIDS!!!

Let’s Re-engineer Our Economy to Work Again!

TBM

Toronto Chapter

Questions for a friendly vote with a show of hands?

1. How many agree Canada needs a strong manufacturing base?

2. How many believe TBM is a realistic initiative?

3. How many believe government must focus on Industrial Policy

4. How many would like to be kept informed on TBM and would like to participate in the TBM journey?

5. How many give the “thumbs up” for TBM!!!

100



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Questions for a friendly vote with a show of hands?

1. How many agree Canada needs a strong manufacturing base?

2. How many believe TBM is a realistic initiative?

3. How many believe government must focus on Industrial Policy

4. How many would like to be kept informed on TBM and would like to participate in the TBM journey?

5. How many give the “thumbs up” for TBM!!!

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Questions?

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KEEP ASKING…. WHY?…

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END 103

Society of Manufacturing Engineers SME Torontopresentation...6/7/2014 1 SME Toronto Nigel Southway...

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Transcript of Society of Manufacturing Engineers SME Torontopresentation...6/7/2014 1 SME Toronto Nigel Southway...