[PDF] - SME Toronto WWW.SMETORONTO.CA Nigel Southway SME Chapter PDF Document

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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

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TBM

Take Back Manufacturing

A Forum Dedicated to Restoring

ur 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

Take Back Manufacturing 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

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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

Take Back Manufacturing

www.SME-TBM.org

A Forum Dedicated to Restoring

ur Manufacturing Sectors.

25 Technical Associations 3 Trade associations 5 Educational policy makers 7 Media experts 3 Local government reps 5 Industry experts

TBM

Take Back Manufacturing 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

Take Back Manufacturing 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

Take Back Manufacturing WWW.SME-TBM.ORG

20

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

This is NOT a game!!!...

? ? ? ?

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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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23 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)

USA

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)

USA

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

USA

HUGE ONGOING TRADE IMBALANCE

(GDP=1350B)

10% GDP

CANADA

1% GDP
2% GDP

Worse than USA numbers!!!

Canada/World 30

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1% GDP

31 Declining

Prosperity INDEX

CANADA

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

Take Back Manufacturing WWW.SME-TBM.ORG

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

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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

LEAN Review of Trading Models

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

LEAN Review of Trading Models

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 Review of Trading Models

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!!!

LEAN Review of Trading Models

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 3 6 Support at offshore site will be an adder to your business costs Transportation 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) 8 10 Brokerage, duty and insurance will add to the costs Total factory cost 100 80 103 Baseline set on local supply 20 40 60 80 100 120 LOCAL BEST CASE WORSE CASE

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

BALANCED SOURCING

BALANCED LANDED COST LOCAL BEST OFF-SHORE WORST OFF-SHORE

?

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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LOCAL BEST OFF-SHORE WORST OFF-SHORE

?

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

Take Back Manufacturing

TBM

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LOCAL BEST OFF-SHORE WORST OFF-SHORE

?

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

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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

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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

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 !!!

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

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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 !!!

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

?

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

via lower US $ value …….. Rethinking of globalized supply

Balanced Sourcing Cost trade-off modeling

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!

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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

ff 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

peration will demand high levels of skill and education.

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

f these is our biggest risk.

Take Back Manufacturing

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%

?

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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

Take Back Manufacturing WWW.SME-TBM.ORG 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

North-American Manufacturing Prosperity for all. Industry

TBM – The 3 Parallel Imperatives

Educators

Government M IMPROVE POLICY

TBM

Government

TBM – The 3 Parallel Imperatives

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

TBM – The 3 Parallel Imperatives

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

Take Back Manufacturing WWW.SME-TBM.ORG

IT NEEDS … A DELIBERATE ACT OF NATIONAL & REGIONAL…

LEADERSHIP
POLITICAL WILL
PLANNING
COMMITMENT

TBM

North-American Manufacturing Prosperity for all. Industry

TBM – The 3 Parallel Imperatives

Educators

Government M

?

The Current Skill Mix Is In Disarray And Misaligned.

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TBM

North-American Manufacturing Prosperity for all.

TBM – The 3 Parallel Imperatives

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 Education Institution Work Term Work Term Education Institution

?

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Integrated Industrial Learning System

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 Education Institution Education Institution Work Term Work Term Education Institution ? ?

?

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

Integrated Industrial 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 !

Integrated Industrial Learning System

TBM

North-American Manufacturing Prosperity for all. Industry

TBM – The 3 Parallel Imperatives

Educators

Government M

?

Let’s Mobilize!!! & Let’s WIN!!!

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TBM

TBM – The 3 Parallel Imperatives

Educators

Industry

North-American Manufacturing 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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93

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….

94

….. 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

96

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

North-American Manufacturing Prosperity for all. Industry

TBM – The 3 Parallel Imperatives

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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Take Back Manufacturing

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!!!

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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!!!

101

Questions?

102 KEEP ASKING…. WHY?…

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END

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