11/14/2013 Toronto Chapter SME Toronto WWW.SMETORONTO.CA Nigel Southway SME Chair 2012/2013 Toronto Chapter www.sme.org. 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. $125 per Year WWW.SMETORONTO.CA 1
11/14/2013 SME Technical Community Networks (8) Automated Manufacturing & Assembly Manufacturing Education & Research Identifies and pursues advancing Advances education and research in technologies and techniques in manufacturing, career and professional automation and assembly. development, and the manufacturing enterprise's need for a skilled workforce. Forming & Fabricating Plastics, Composites & Coatings Concentrates on key metal forming and Addresses the manufacturing processes of fabricating technologies. plastics, composites, and finishing and coatings technology. Industrial Laser Product & Process Design and Management Promotes laser technology in North Discusses, investigates and advances ideas America with high intensity by educating related to the design and management of the market and advancing the laser products and processes, as well as lean technology base. manufacturing concepts and certification. Rapid Technologies & Additive Manufacturing Machining & Material Removal Concentrates on the technologies and Discusses, explores and advances ideas processes that help conceive, develop, test, related to cutting processes and improve and manufacture new products to machining systems. bring them to market faster and more cost effectively. LEAN Certification http://www.sme.org/leancert 2
11/14/2013 NIGEL SOUTHWAY Owner of NEXUS CONSULTING SERVICE • 40 years Broad Business and Manufacturing Experience • British Engineering Apprentice …Aerospace/Electronics (1966) • BSc EEE C- Eng. in Engineering/MSc Management…. • Manufacturing Engineer (1972) • MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation (1980,s) (1992) • Engineer / Manager / Director / VP Operations • Change Agent/Educator/Coach/Advisor for LEAN business improvement • AUTHOR : CYCLE TIME MANAGEMENT … Fast Track to Productivity Improvement • Consulted / Directed many organizations in different industry sectors. LEAN THINKING 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. • Assisted many Global Sourcing programs and Joint Ventures (2004 Onward) NEXUS • Society of Manufacturing Engineers … 2012 Chair Toronto www.nigelsouthway CANADA MANUFACTURING A NORTH AMERICAN PROBLEM The future of Manufacturing in Ontario’s economy. 6 3
11/14/2013 TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing TBM A Forum Dedicated to Restoring our Manufacturing Sectors. A HUGE CHALLENGE!!! TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing TBM Since Mid 2011 www.SME-TBM.org A Forum Dedicated to Restoring our Manufacturing Sectors. 4
11/14/2013 TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing TBM 25 Technical Associations 3 Trade associations 5 Educational policy makers 7 Media experts 3 Local government reps 5 Industry experts A Forum Dedicated to Restoring our Manufacturing Sectors. www.SME-TBM.org TBM M 10 5
11/14/2013 TBM Take Back Manufacturing WWW.SME-TBM.ORG TBM …Our Ultimate Goal Government, Education organizations Work together …. Industry leaders ROADMAP……..Recover our future industrial capability …… and therefore our future prosperity. 11 Presentations.... TAKE BACK MANUFACTURING Raising the Awareness CMTS Toronto Canada October 2011 SME Annual Conference Cleveland USA June 2012 TBM Many Society and Association events in 2012/13 M 6
11/14/2013 http://www.canadianmanufacturing.com/fabrication/production/taking-back-manufacturing-51066 Professional Engineers Ontario http://sme-tbm.org/app/download/5809147904/PEO+TBM+article.pdf 7
11/14/2013 Take Back Manufacturing on TVO The Agenda Marie Laird … Past Chair SME Toronto 15 16 8
11/14/2013 TBM Take Back Manufacturing WWW.SME-TBM.ORG WHY? ..Take Back Manufacturing FOR OUR KIDS!! 17 This is NOT a game!!!... Our Kids will think we don't make things!!! ? ? ? ? 18 9
11/14/2013 GLOBALIZED MANUFACTURING GLOBALIZED MANUFACTURING 10
11/14/2013 GLOBALIZED ? ? MANUFACTURING Moved Off- shore….. For low cost labor rates Un- controlled trade….. “herd behavior” 15% Reduction in Manufacturing Intensity in the last decade Foods Fittings Equipment metalwork Appliances AUTO PARTS Electronics Furniture Plastic goods Footwear Textiles TBM 22 11
11/14/2013 CANADA TBM More than 500,000 jobs lost in last 6 years Only 25000 jobs added in Resource Sector 25% Reduction (Quantity and Quality) 50% of Manf SME’s lost in Ontario Economic Productivity trending downward due to reduced Capacity utilization 2009 2010 2011 Source: Statistics Canada 1,000,000 Young Canadians Redeployed to part time Now out of work!! and lower paying service jobs Yet ….we have a skill shortage!!! (NOT a labor shortage) We have become an Over-educated / Under-trained /Redundant Workforce!!! 23 What happened? 24 12
11/14/2013 USA OUR BIG BROTHER - 1% GDP (US GDP 2010=14000B) 25 OUR BIG BROTHER USA -1% GDP Globalized Trade Free Market forces… Chased Emerging Markets Used liberalized Trade approach Removed barriers and controls Accepted Out of Balance Trade. Assumed More Service Sector Jobs???? (US GDP 2010=14000B) 26 13
11/14/2013 USA -1% GDP Globalized Trade - 4% GDP Cumulative Deficit is now 50% 2010 GDP Significant government deficit and foreign borrowing 27 (US GDP 2010=14000B) USA -1% GDP Globalized Trade - 4% GDP Cumulative Deficit is now 50% 2010 GDP Significant government deficit and foreign borrowing (US GDP 2010=14000B) 28 14
11/14/2013 -1% GDP CANADA (GDP=1350B) -2% GDP Canada/World -10% GDP Worse than USA numbers!!! 29 -1% GDP CANADA Prosperity INDEX Declining We have lost our BALANCE to remain Productive. It is not that we are less productive.. but more about having idle capacity! 30 15
11/14/2013 Ontario Economic Performance How has Globalized Manufacturing Affected our Province? M ONTARIO Reduction 13% GDP & 15% Employment Intensity Gap 16
11/14/2013 Reduced Manufacturing intensity Offshore content has increased Declining Capital Investment ( 70% LESS) Reduced Investment trends will mean 25% further decline in the next decade 17
11/14/2013 ? ? SERVICE JOBS???? Significant “out - shoring” in some of these sectors ? ? (1 Manf Job = 3 Service Jobs) 18
11/14/2013 Summary 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! We are now a “have - not” Province! M TBM Take Back Manufacturing WWW.SME-TBM.ORG Why…. Take Back Manufacturing It is now VERY obvious that we need a Balanced Economy (Resources/Services/Manufacturing) The message is getting through!! For Our…. Population Province/State Workforce Business Leaders Investors Kids 19
11/14/2013 TBM Take Back Manufacturing WWW.SME-TBM.ORG Why…. Take Back Manufacturing For our Population Recover lost prosperity and reduce risk of global economic instability now and into the future. Recover higher income jobs of all types via manufacturing's higher productivity Recover the ability for manufacturing to create the 3:1 economic activity into other sectors. For Our Province Recover lost tax revenue to balance budgets at all levels of government and public services. Recover an autonomous and balanced economy without over reliance on natural resources For our Workforce Stabilize future skills and career opportunities at all levels ……. Including Professionals For Business Leaders Provide a strong incubator and support system for local Innovation and R&D investment. Better protect and sustain the Intellectual property of the next generation of innovations Improve ability to compete world wide from a stable home market/manufacturing base. For our Investors Provide solid Value-added investment opportunities for local capital via manufacturing. For Our Kids Reduce the Global Carbon Footprint and oil dependency … Reduce the Negative wealth flow So what’s next? We need a critical mass of awareness by every-one to force action taking to recover our future…… THE GAME CHANGER! A 2 nd Chance? 41 20
11/14/2013 GLOBALIZED ? ? MANUFACTURING TBM Positional Paper on the Waste in a Global Supply Chain Waste of VERY Expensive Bunker Fuel PURE WASTE Much Non-Value-Adding Inventory 43 21
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