Take Back Manufacturing 2017 Nigel Southway TBM Advocate 50 years - - PDF document

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Take Back Manufacturing 2017 Nigel Southway TBM Advocate 50 years - - PDF document

Jan 10, 2024 162 likes •1.06k views

2/23/2017 TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing 2017 Nigel Southway TBM Advocate 50 years of Manufacturing Experience, Engineer, Consultant, Author, Business Owner. Past Chair of Society Manufacturing Engineers

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TBM Take Back Manufacturing

WWW.SME-TBM.ORG

Take Back Manufacturing

Nigel Southway

TBM Advocate

2017

50 years of Manufacturing Experience, Engineer, Consultant, Author, Business Owner. Past Chair of Society Manufacturing Engineers

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

The Globalized Manufacturing approach with efficient Supply Chains has been the business norm for the last 3 decades…. Many experts now predict a Total Economic Re-Engineering: Sustainable Supply Chains LEAN Business practices.. Including Disruptive Technologies Balanced Sourcing involving Reshoring Localized and Nationalistic trade blocs. More nationalistic politics are now in vogue and may reverse 30 years of poor global management and low prosperity. This will be the next business initiative to understand and embrace.

Take Back Manufacturing

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TBM Take Back Manufacturing

WWW.SME-TBM.ORG

The Globalized Manufacturing approach with efficient Supply Chains has been the business norm for the last 3 decades…. Many experts now predict a Total Economic Re-Engineering: Sustainable Supply Chains LEAN Business practices.. Including Disruptive Technologies Balanced Sourcing involving Reshoring Localized and Nationalistic trade blocs. More nationalistic politics are now in vogue and may reverse 30 years of poor global management and low prosperity. This will be the next business initiative to understand and embrace.

Take Back Manufacturing

SORRY!... This presentation may offend current Economic doctrine. Manufacturing and Engineering has been a good career for a lot of us!!

It’s been good to me!

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1966….. 4 Important things happened….

England won the Soccer World Cup The Beatles released the LP…. Revolver Star Trek premiers on TV I start my Engineering Apprenticeship at 16

6

BRITISH 60’s

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2/23/2017 4 THE BEATLES

MODS Miniskirts

THE WHO

BRITISH 60’s

The MODs British Rock Music MINI

The Small Faces

8

This?….

OR

This?….

Career choice…

WHICH INSTRUMENT??

Electron Electron
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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

British Engineering Apprenticeship

British Aerospace

Electronics / Space-Systems group Bristol Division England Student Engineering Apprenticeship Indentured and Integrated with industry Embedded Education within Industrial Training program

www.nigelsouthway.com

CONCORDE SST

002 April 1969

Proto-test platform Mach 2 (1350 mph) 120 Passengers

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INTELSAT/COMSTAR/ANIK Communication Satellite

12 Space Shuttle Remote Manipulator System (SRMS) Canada
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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 ……….Brampton / Chicago / Nogales Mexico

HI Tech Boom….ABM Secure Networks

Modems/Multiplexors

www.nigelsouthway.com

NIGEL SOUTHWAY

  • 50+ years Broad Business and Manufacturing Experience
  • British Engineering Apprentice…Aerospace/Electronics (1966)
  • BSc EEE C-Eng. in Engineering/MSc Management…. (Bristol)
  • Manufacturing Engineer (1972)
  • MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation 1980,s
  • Engineer / Manager / Director / VP Operations / General Manager
  • Consultant/Change Agent/Educator/Coach for LEAN business improvement
  • AUTHOR : CYCLE TIME MANAGEMENT… Fast Track to Productivity Improvement
www.nigelsouthway

NEXUS

Owner of NEXUS CONSULTING SERVICE (1992) Consulting coaching and education on Business Productivity Improvement and Advanced Manufacturing, Joint Ventures, New Product Introduction Systems, Global Technology Transfer projects, Disruptive Technologies and Sustainable Supply Chain Management. Develop a Vision, Strategy and Evolution plan to attack waste, capture productivity improvements, increase profits, and become more competitive in the global market. Society Manufacturing Engineering Toronto Secretary and Past Chair in 2012-2013, Presidents Award. Lecturing at Canadian learning institutions and Industry Associations on Sustainable Supply Chains. Advocate for the Take Back Manufacturing Forum and North American Reshoring initiative Clients in Canada, USA, Asia and Europe.
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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 16

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

CHINA MANUFACTURING

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CHINA MANUFACTURING

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Components Subassemblies Some final assemblies Mixed Volumes Metal and Plastics + Welded Assemblies

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CHINA MANUFACTURING CHINA MANUFACTURING CHINA MANUFACTURING

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CANADA MANUFACTURING

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The future of Manufacturing in Ontario’s economy.

CANADA MANUFACTURING

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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.

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

Since Mid 2011

TBM

Take Back Manufacturing

www.SME-TBM.org A Forum Dedicated to Restoring

  • ur Manufacturing Sectors.
25 Technical Associations 3 Trade associations 5 Educational groups 6 Economic Policy makers 7 Media experts 3 Local government 5 Industry experts

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

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2/23/2017 14 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

http://www.canadianmanufacturing.com/fabrication/production/taking-back-manufacturing-51066
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http://sme-tbm.org/app/download/5809147904/PEO+TBM+article.pdf

Professional Engineers Ontario

30
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31

BNN BUSINESS NEWS NETWORK

What can Canada learn from German Manufacturing?

TBM…Our Ultimate Goal

32

Work together ….

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

TBMTake Back Manufacturing

WWW.SME-TBM.ORG

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WHY?..Take Back Manufacturing

FOR OUR KIDS!!

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TBM Take Back Manufacturing

WWW.SME-TBM.ORG

34

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

This is NOT a game!!!...

? ? ? ?

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GLOBALIZED MANUFACTURING

Moved Off-shore…..

36

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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37 2009 2010 2011

CANADA

More than 500,000 jobs lost in 6 year period (300,000 Ontario) 25% Reduction (Quantity and Quality)

TBM

Lost 50% MFG SME’s in Ontario 10% Productivity Loss due to reduced Capacity utilization

Due to this….we have a 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 Lost 10,500 Plants in Ontario

What happened?

38
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  • 1% GDP
39

OUR BIG BROTHER

(US GDP 2010=14000B)

USA

  • 1% GDP
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OUR BIG BROTHER

(US GDP 2010=14000B)

USA

Economists started to follow an almost Religious fanatical view of free market doctrine Washington Consensus Milton Friedmans Folly
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  • 1% GDP
41

OUR BIG BROTHER

(US GDP 2010=14000B)

USA

Adopted Free Market Ideology… Chased Emerging Markets

Deregulated National Economic Trade Controls Used liberalized Trade approach (Enforced by WTO) Allowed Out of Balance Trade. Encouraged free flow of capital Increased financialization of economies Allowed Exchange rates to float in market Deregulated labor and wage laws Disregarded concern for manufacturing decline Assumed More Service Sector Jobs???? Assumed local exports would grow/balance Washington Consensus Globalized Trade
  • 4% GDP
Cumulative Trade Deficit is now 50% GDP
  • 1% GDP
42 (US GDP 2010=14000B)

USA

!

Washington Consensus Globalized Trade
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  • 4% GDP
Cumulative Trade Deficit is now 50% 2010 GDP
  • 1% GDP
43 (US GDP 2010=14000B) Significant government deficit and foreign borrowing High Unemployment / Growing wealth inequality / Prosperity decline Loss of National Sovereignty and Imbalance between Capital and Labor

USA

HUGE ONGOING TRADE IMBALANCE

Some experts call this “Wealth dilution”

44 America’s establishment remains clueless why stimulus after stimulus is failing A big part of the problem, which our globalist rulers won’t admit, is that so much stimulus is leaking abroad due to
  • ur trade deficit,
Make no mistake: our trade is in crisis. Our trade deficit now runs about $50 billion a month. The U.S. is competing under self-imposed free-trade rules against foreign nations with aggressively mercantilist trade strategies. Trade is rigged. Foreign governments subsidize their exports. Only about 15 percent of world trade is genuinely free. More free-trade agreements, the establishment solution to the problem, will not solve it. Trade agreements sign away democratic control over our health, safety, labor law, immigration law, fiscal policy, financial stability, national security, environmental policy, and other things. Imports cause a trade-off between wages and prices, and there is no good reason to suppose that free trade necessarily hits the sweet spot of this trade-off. Above all, the U.S. has virtually nothing to gain from pushing even further in the direction of more free trade— America is running a huge deficit, not a surplus, with China. ($245 billion in 2011, about 41 percent of our total). “Free trade costs America low-quality jobs but brings high-quality jobs in their place.”…..But the hard data actually show America losing both kinds of jobs. For example, according to the Bureau of Labor Statistics, the U.S. lost over 270,000 engineer and architect jobs between 2000 and 2010. Free trade is rotting away America’s industrial base as foreign nations target and conquer industry after industry.

The Case against Free Trade By Ian Fletcher

Trump is Right… Trade balance matters!!!
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45 America’s establishment remains clueless why stimulus after stimulus is failing A big part of the problem, which our globalist rulers won’t admit, is that so much stimulus is leaking abroad due to
  • ur trade deficit,
Make no mistake: our trade is in crisis. Our trade deficit now runs about $50 billion a month. The U.S. is competing under self-imposed free-trade rules against foreign nations with aggressively mercantilist trade strategies. Trade is rigged. Foreign governments subsidize their exports. Only about 15 percent of world trade is genuinely free. More free-trade agreements, the establishment solution to the problem, will not solve it. Trade agreements sign away democratic control over our health, safety, labor law, immigration law, fiscal policy, financial stability, national security, environmental policy, and other things. Imports cause a trade-off between wages and prices, and there is no good reason to suppose that free trade necessarily hits the sweet spot of this trade-off. Above all, the U.S. has virtually nothing to gain from pushing even further in the direction of more free trade— America is running a huge deficit, not a surplus, with China. ($245 billion in 2011, about 41 percent of our total). “Free trade costs America low-quality jobs but brings high-quality jobs in their place.”…..But the hard data actually show America losing both kinds of jobs. For example, according to the Bureau of Labor Statistics, the U.S. lost over 270,000 engineer and architect jobs between 2000 and 2010. Free trade is rotting away America’s industrial base as foreign nations target and conquer industry after industry.

The Case against Free Trade By Ian Fletcher

http://www.thesocialcontract.com/artman2/publish/tsc_22_4/tsc_22_4_fletcher.shtml 46 Wealth transfer gradient

Global Trade Balance Imbalance

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  • 4% GDP
Globalized Trade Cumulative Trade Deficit is now 50% GDP
  • 1% GDP
48 (US GDP 2010=14000B)

USA

Washington Consensus (GDP=1350B)

CANADA

  • 1% GDP
49
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(GDP=1350B)

CANADA

  • 1% GDP
  • 2% GDP
50 (GDP=1350B)

CANADA

  • 1% GDP
  • 2% GDP
51

Increasing dependence on Imports Increasing dependence on Exports of raw resources

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(GDP=1350B)
  • 10% GDP

CANADA

  • 1% GDP
  • 2% GDP

Worse than USA numbers!!!

Canada/World 52
  • 1% GDP
53 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
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54

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

Questions?

55

OUR ECONOMY NEEDS MANUFACTURING!

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So what’s next?

56

We need a critical mass of awareness by every-one to force action taking to recover our future……

THE GAME CHANGERS!

So what’s next?

57

We need a critical mass of awareness by every-one to force action taking to recover our future……

THE GAME CHANGERS!

Brit Balanced Trade Matters
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58

Global Change took place at an Exponential Rate!!

Globalization Enabled Change (Positively and Negatively)… Exponential

59 Religious/Ethnic pressures Higher Expectations to share wealth Cultural Mobility National boundaries (Much Migration) Technology (Supply Chains) Market and Commerce (unbalanced) Economics (unplanned) Politics

Global Change took place at an Exponential Rate!!

Globalization Enabled Change (Positively and Negatively)…

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60 Religious/Ethnic pressures Higher Expectations to share wealth Cultural Mobility National boundaries (Much Migration) Technology (Supply Chains) Market and Commerce (unbalanced) Economics (unplanned) Politics Age of Disruption Ecological Sustainability Issues Age of Over-Supply

Global Change took place at an Exponential Rate!!

Globalization Enabled Change (Positively and Negatively)…

61
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62 2B 4B 6B 1950 2000 1960 1970 1980 1990 2010 2015 2020 The Global Workforce 250% Increase People Demand For Labor In all forms Capacity “Over-Supply” Higher Productivity via Technology + Unequal Consumer/Output balance

Added 3 Billion to the workforce

[25% un or under employed]

3 4 7 9 10 11 12 21 13 23 22 20 19 15 13 8 UNDER + UN UNDER % % Global un and under Employment 63

Globalized Trade has outpaced Wealth Creation Wealth Dilution

Winners Emerging Economies Bankers Traders Global Corporations Global Capitalists Losers Mature Economies National governments Mature Economy Middle class Citizen level investors Youth early in careers The Planet! Significant failure to correctly manage trade balance and wealth entitlement Ave Prosperity
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64

Wealth Dilution

Winners Emerging Economies Bankers Traders Global Corporations Global Capitalists Losers Mature Economies National governments Mature Economy Middle class Citizen level investors Youth early in careers The Planet! Significant failure to correctly manage trade balance and wealth entitlement Trade is an inefficient method to generate wealth! Ave Prosperity GDP is now a poor measure of prosperity!

Globalized Trade has outpaced Wealth Creation

More Globalization ….but less Prosperity…. (The globalists checklist)  More container ships that are the highest polluters on the planet  More pollution by uncontrolled and under legislated third world manufacturing activity.  More safety problems in inexperienced emerging economies.  More loss of our local manufacturing base and employment  More transfer of service jobs offshore  More need to have to compete with low cost wage countries  More pressure to increase growth to support wasteful exports due to need to pay for imports  More global waste and productivity loss due to global transportation and long supply chain support effort.  More unsustainable resource extraction and de-forestation to pay for the globalization growth process  More imported and out of season food products that destroys our ability to “grow our own” in a more sustainable way.  More wasteful duplication of product offerings with less utilization of local capacity and capital.  More loss of national sovereignty in all forms  More loss of control of the national economy by governments  More national balance of payment problems  More dilution of local government spending  More foreign investment diluting our national stability  More financialization services rather than real value to our economy  More cross border capital flows disrupting local investments  More pressure on national exchange rates  More complex system needed to control national trade balance  More inequality within and across nations  More expectations to migrate and immigrate instead of making the native environment work.  More Adverse and forced mixing of cultures  More boom and bust growth due to trans-national corporatism  More Trans-national corporate tax evasion at national levels  More opportunity for trans-national corporatism to exploit national economies and its citizens.  More international students that become unplanned and unneeded back door immigration.  More dislocation of our own students on wasteful exchange programs while foreign students get experience in our own economy.  Etc.
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66

Global Change is taking place at an Exponential Rate!!

Globalization is Enabling Change (Positively and Negatively)… Religious/Ethnic pressures Higher Expectations to share wealth Cultural Mobility National boundaries (Much Migration) Technology (Supply Chains) Market and Commerce (unbalanced) Economics (unplanned) Politics Age of Disruption Ecological Sustainability Issues Age of Over-Supply 67
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68

Global Warming

???? Climate Change ????

Air Pollution

69
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WASTE

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Water…. A “Thirsty” Resource!!

A Car takes 39,090 gallons of water to make Plus 2,000 gallons for the Tires Pair of Jeans takes around 1,800 gallons of water to grow enough cotton to produce just one pair. Cotton T-Shirt… 400 gallons of water to grow the cotton required for an ordinary cotton shirt. Single Board of Lumber takes 5.4 gallons of water to grow enough wood for one lumber board. Barrel of Beer…(32 gallons of booze), takes 1,500 gallons of water. To-Go Latte…takes 53 gallons to make every latte, grow coffee, sugar, plastic lid, the sleeve and the cup itself. . . Individual Bottled Water This irony shouldn't be lost on anyone: it takes 1.85 gallons of water to manufacture the plastic for the 500ml bottle of water.
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72

North Americans Water Consumption

1.5 Olympic swimming pools per year per person 24,000 pints of beer a week per person 13.5 showers a day per person

The Planet Earth has a relatively new virus

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The Planet Earth has a relatively new virus

  • This Destructive virus is multiplying at an exponential rate
  • Infiltrates all ecosystems and habitats
  • Destroys forests and attacks all forms of life
  • Increases pollution levels in rivers and oceans
  • Has a negative impact on the air quality
  • May be responsible for adverse weather changes
  • The virus is “mutating” to further enhance the danger
  • Its called …Man!

Hopefully it will mutate into a benign state before it destroys the whole planet! .

The Planet Earth has a relatively new virus

  • This Destructive virus is multiplying at an exponential rate
  • Infiltrates all ecosystems and habitats
  • Destroys forests and attacks all forms of life
  • Increases pollution levels in rivers and oceans
  • Has a negative impact on the air quality
  • May be responsible for adverse weather changes
  • The virus is “mutating” to further enhance the danger
  • Its called …Man!

Hopefully it will mutate into a benign state before it destroys the whole planet! .

Its called …Man! It likes to live now ………and pay later! Hopefully it will mutate into a benign state before it destroys the whole planet!
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The Planet Earth has a relatively new virus

  • This Destructive virus is multiplying at an exponential rate
  • Infiltrates all ecosystems and habitats
  • Destroys forests and attacks all forms of life
  • Increases pollution levels in rivers and oceans
  • Has a negative impact on the air quality
  • May be responsible for adverse weather changes
  • The virus is “mutating” to further enhance the danger
  • Its called …Man!

Hopefully it will mutate into a benign state before it destroys the whole planet! .

Its called …Man! It likes to live now ………and pay later! Hopefully it will mutate into a benign state before it destroys the whole planet!

SUSTAINABILITY

77

Or how to become Lean and Green

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78

What is Business Sustainability?

FOCUS…LEAN Thinking!!!

ISO 26000 Sustainability– Performance Assessment – Social Responsibility

Must….Better balance NEED versus WANT!!

SUSTAINABILITY

79

Or how to become Lean and Green

On a Global level

Best achieved via National Self Determination

Focus on our Citizens needs Focus on our Children’s future Only Import what we really need Only Export what others really need Reduce Waste in all forms Involve all factions of our Society
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GLOBALIZED MANUFACTURING

? ?

TBM Positional Paper on the Waste in a Global Supply Chain

GLOBALIZED MANUFACTURING

? ?

TBM Positional Paper on the Waste in a Global Supply Chain
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GLOBALIZED MANUFACTURING

? ?

TBM Positional Paper on the Waste in a Global Supply Chain

GLOBALIZED MANUFACTURING

? ?

TBM Positional Paper on the Waste in a Global Supply Chain
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84

Waste of VERY Expensive Bunker Fuel Much Non-Value-Adding Inventory

PURE WASTE 85

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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86

INSANITY

87
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GLOBALIZED MANUFACTURING

? ?

START THINKING LEAN & GREEN

?

89

GLOBAL SUPPLY CHAIN Localized TRADE Bloc

LEAN Review of Trading Models

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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 90 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

Cost Drivers

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 91 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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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???

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 93 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 94 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 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 95 Dig Resources Ship resources Dock resources Use Resources Ship products Dock products Ship Store ship Sell Process

LEAN Review of Trading Models

CHINA/ASIA

Localized TRADE Bloc FUTURE

Cost Drivers

TBM

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Mexico 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 96 Dig Resources Ship resources Dock resources Use Resources Ship products Dock products Ship Store ship Sell Process

LEAN Review of Trading Models

CHINA/ASIA

Localized TRADE Bloc FUTURE

Cost Drivers

TBM

NAFTA Mexico 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 97 Dig Resources Ship resources Dock resources Use Resources Ship products Dock products Ship Store Ship Sell Process

Localized TRADE Bloc

1000 km Each way MAX 1 week Transit Inventory Max $10/M cube to transport Max Few Transactions Minimal Inventory/Interest rate exposure

Short Supply Chains FAST RESPONSE to customers

LEAN Review of Trading Models

FUTURE

Cost Drivers 11% 16% 10% 10%
slide-49
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2/23/2017 49

Canada USA 98 Process

Localized TRADE Bloc

1000 km Each way MAX 1 week Transit Inventory Max $10/M cube to transport Max Few Transactions Minimal Inventory/Interest rate exposure

Short Supply Chains FAST RESPONSE to customers

LEAN Review of Trading Models

Dig Resources Use Resources Ship Sell Local Manufacturing Strong Incubator for INNOVATION

FUTURE

Canada USA 99 Process

Localized TRADE Bloc

1000 km Each way MAX 1 week Transit Inventory Max $10/M cube to transport Max Few Transactions Minimal Inventory/Interest rate exposure

Short Supply Chains FAST RESPONSE to customers

LEAN Review of Trading Models

Dig Resources Use Resources Ship Sell Local Manufacturing Strong Incubator for INNOVATION

FUTURE

slide-50
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2/23/2017 50

CHINA/ASIA Canada USA 100

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

FUTURE Localized TRADE Bloc

Other Trade Blocs Other Trade Blocs Other Trade Blocs CHINA/ASIA Canada USA 101

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

Other Trade Blocs Other Trade Blocs Other Trade Blocs
slide-51
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2/23/2017 51

Canada USA 102

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 More Sustainable More Self Determination

GLOBALIZED MANUFACTURING

? ?

slide-52
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2/23/2017 52

?

GLOBALIZED MANUFACTURING

?

We Question its future Sustainability

COMBINED OPERATIONS

Take Back Manufacturing

TBM

slide-53
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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

We have “Run the Numbers”

107

USED BALANCED SOURCING MODELS

Every Engineer should understand business costing and economics!!!

LEAN Review of Trading Models

TBM

Report for EDC at…
slide-54
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108 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 109 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 Material DIRECT OVER HEAD LOCAL 2015+ TBM 5% IMAGINE IF WE IMPROVED Productivity BY 5%? Tipping Point RESHORE ADVANTAGE!
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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. OFFSHORE LOCAL

BALANCED SOURCING

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

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, Plus…Many Other hidden drivers…. OFFSHORE LOCAL

BALANCED SOURCING

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

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2/23/2017 56

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, Plus…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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2/23/2017 57

Reshoring Tipping point

Product $ labor versus Cubic Volume USA Economy

$ Lab Product Cubic Volume Offshore Onshore Tipping Point 2015 I Phone Fridge

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

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2/23/2017 58

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

Questions?

117

IT WILL BE A CHALLENGE BUT MANUFACTURING CAN RETURN BUT IT MUST BE TAKEN BACK

slide-59
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2/23/2017 59

But….Are WE Ready???

TBM

M

?

Reshoring to Canada?

  • 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 !!!

TBM

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

……..but not sure about Canada!

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120

CANADA / US $ EXCHANGE

(Appreciated) 75 cent $ 0.5 1.0 100 cent $ 1985 1990 2000 2010 75 cent $ 2015

?

Purchase Price Parity 81 Cent $ 4% Prod Growth Mis-management period We did not earn the par dollar so its rise has done a lot of damage already.. A 75 Cent $ is mostly good news, but very late, It won’t help those with significant material supply chain not now in Canada due to past offshore practices.. 2% Productivity Growth

?

Impact of Poor Economic footprint (Auto sector)

  • Canada (Ontario) at

$76/hour $65/Hour $60/Hour

  • US North

$85/hour

  • US Mid West

$67/hour

  • US South

$49/hour

  • Mexico

$18.5/hour

121

Reshoring will force some geographical location changes

Loaded Factory direct costs 0.95 Cdn $ 0.81 Cdn $ 0.75 Cdn $ NAFTA Scenario Other International trade deals will increase pressure Non Competitive Wage rates Employment taxation Energy Safety costs Government incentives Competitive Corporate taxation Process productivity Output quality Canada Declining Capital Investment (70% LESS) Reduced Investment trends will mean 25% further decline in the next decade
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TBM Take Back Manufacturing

WWW.SME-TBM.ORG

IT WILL BE A CHALLENGE FOR CANADA BUT SOME MANUFACTURING CAN RETURN BUT ONLY IF WE TAKE IT BACK

Based on a decline in Resource sectors its our best plan B TBM

North-American Manufacturing Prosperity for all.

Industry

TBM – The 3 Parallel Imperatives

Educators Government

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2/23/2017 62 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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement
  • Provide MORE support for Manufacturing
  • Embrace Waste-Free Forms of Globalization
  • Focused Industrialization POLICY and PLANS
  • Avoid duplicated policy and support organizations
slide-63
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2/23/2017 63 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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement
  • Provide MORE support for Manufacturing
  • Embrace Waste-Free Forms of Globalization
  • Focused Industrialization POLICY and PLANS
  • Avoid duplicated policy and support organizations
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! Nation Nation Nation Nation ste Waste TRADE SYSTEM for Resources/Materials/Products/Capital/Labor/IP EVOLUTION STRATEGY NOW Global Trade System (“Free” ? Trade)
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128 Nation Nation Nation Nation ste Waste Nation Nation Nation Nation Trade Blocs (Geographical) Essential + Balanced/Tariff TRADE SYSTEM for Resources/Materials/Products/Capital/Labor/IP EVOLUTION STRATEGY NOW FUTURE Global Trade System (“Free” ? Trade) 129 Nation Nation Nation Nation ste Waste Nation Nation Nation Nation Trade Blocs (Geographical) Essential + Balanced/Tariff TRADE SYSTEM for Resources/Materials/Products/Capital/Labor/IP EVOLUTION STRATEGY Global Trade System (“Free” ? Trade)
slide-65
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130 Nation Nation Nation Nation ste Waste Global Trade System (“Free” ? Trade) Nation Nation Nation Nation Trade Blocs (Geographical) Essential + Balanced/Tariff TRADE SYSTEM for Resources/Materials/Products/Capital/Labor/IP EVOLUTION STRATEGY Gain Political Will Focus/Review all Imports Stop Imports unless essential Export value added Resources Focus on local self determination of local economic sustainability Improve Internal sustainability Ensure Internal trade competition Ensure local capital controls Trade resources outside Bloc only if essential to Importers own economy Trade IP in Equitable Global Manner

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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement
slide-66
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2/23/2017 66

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

?

?

?

Only 20% are STEM students (Science, Technology, Engineering and Math) International score….. 14 out of 18 in Literacy 19 out of 21 in Numeracy 14 out of 18 in Problem Solving

?

C-

A failing Grade!!!!

Learning systems

Integrated Industrial Learning System

133 Take Back Manufacturing (TBM) Will demand the availability Of a future manufacturing workforce that Is well-educated, well-trained with industry experience.

Future IILS Environment

High School Education institution Industrial Integrated Learning Contract Work Term Education institution Work Term Career! High School Education Institution Education Institution Work Term Work Term Education Institution

?

?

?

Current Environment

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Integrated Industrial Learning System

134 Take Back Manufacturing (TBM) Will demand the availability Of a future manufacturing workforce that Is well-educated, well-trained with industry experience.

Future IILS Environment

High School Education institution Industrial Integrated Learning Contract Work Term Education institution Work Term Career! Provide education and hope they get a job? High School Education Institution Education Institution Work Term Work Term Education Institution

?

?

?

Current Environment

Put into an industry and follow a career and receive focused learning! Remove educational and association silos

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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement
slide-68
SLIDE 68

2/23/2017 68 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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement
slide-69
SLIDE 69

2/23/2017 69 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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement
slide-70
SLIDE 70

2/23/2017 70 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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement
slide-71
SLIDE 71

2/23/2017 71 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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

Industry Game-plan Checklist

Supply Chain Strategy… Reduce intrinsic waste Productivity Improvements… In all aspects of the business Local Community Engagement ….. Work on the image

slide-72
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2/23/2017 72

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) Move manufacturing closer to trade bloc customer via partnerships and focused supply. Move manufacturing closer to trade bloc supply (including primary resources).. Rebuild and Invest in strong local supply cluster relationships RUN THE NUMBERS!!!

Industry Game-plan Checklist

Productivity Improvements… In all aspects of the business

Re-invent business wide LEAN Thinking and a business Continuous Improvement culture Integrated Business systems … Ensure a future “Integration and connectivity plan”. New process technology/capital reinvestment… Flexible Automation/Rapid Technologies. Participate in integrated Learning system to develop/retain/stabilize/mobilize workforce. Gain an aptitude for all forms of INNOVATION and DISRUPTION Technologies Our TBM survey of Manufacturers established… 68% said they must focus on Continuous Improvement 60% said were planning to pursue a LEAN Implementation
slide-73
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Industry Game-plan Checklist

Productivity Improvements… In all aspects of the business

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

Apply DISRUPTIVE technologies to traditional sectors to innovate new products Disruptive technologies such as Additive 3D printing in both Plastic and Metal can provide many industries with both Rapid prototyping and hi performance tooling strategies to re-life traditional industries and breed new industries.

147

Global Change is taking place at an Exponential Rate!!

Globalization is Enabling Change (Positively and Negatively)… Religious/Ethnic pressures Higher Expectations to share wealth Cultural Mobility National boundaries (Much Migration) Technology (Supply Chains) Market and Commerce (unbalanced) Economics (unplanned) Politics Age of Disruption Ecological Sustainability Issues Age of Over-Supply
slide-74
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The New Management Buzz Word

“Disruption”

“Disruptive Innovation”

149

The 5 Advanced Technologies Driving Disruptive Innovation

3D Printing
slide-75
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2/23/2017 75

150 Deloitte Electronics Power Company Lifespan Business Growth Rate Pace of Business Change 151 Deloitte Business Disruption….. A radical change in an industry, business strategy, etc., especially involving the introduction of a new product or service that creates or changes a market: Globalization and the Rapid advance of technology are major causes of business disruption.
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152 Advanced manufacturing technology process machinery is included in this loose term “Advanced Robotics” “Some distraction due to Low Cost Country labor utilization” 153 $B

Global 3D Printer sales

Plastics Metal Composites Food Bones Organs ?
slide-77
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2017-02-23 Design for Additive Metal Manufacturing 154

Additive vs. Subtractive Manufacturing Technologies

  • Subtractive Process
  • Additive Process
www.additivemet.com 2017-02-23 Design for Additive Metal Manufacturing 155

Additive vs. Subtractive Manufacturing Technologies

  • Subtractive Process
  • Additive Process
www.additivemet.com
slide-78
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2/23/2017 78

156 157 IIOT Industrial Internet Of Things
slide-79
SLIDE 79

2/23/2017 79

158

It’s Globalization!

For good!

  • r

For bad? 4TH Industrial Revolution

1st 2nd 3rd 4th

Mechanization, water power, steam power Mass production, assembly line, electricity Computer and automation Cyber Physical Systems

Industry

4.0

Factory Of The Future NRC

slide-80
SLIDE 80

2/23/2017 80

INDUSTRY 4.0

Are we there yet?

North America must…..

Take Back Manufacturing

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

To be competitive It will require…. Political will Strong Investment in Capital and Learning The Application of Disruptive Technologies Focused Via A Factory Of The Future approach.

slide-81
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70% of North American business leaders are revisiting Continuous Improvement (CI) as a strategic differentiator 90% believe IIOT, Advanced Automation and Artificial Intelligence (AI) will be the direction for productivity 80% are unhappy with the effectiveness of past automation and information solutions 85% are looking at a much more integrated information environment ALL agree that to compete on a global basis will require operational excellence.

The experts predict that “disruptive technologies” such as IIoT and Advanced Automation and Artificial Intelligence (AI) Technologies will drive business competitiveness.

The Factory of the Future…

163
slide-82
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2/23/2017 82

CRM PMS CAD CAE CAT DVT PVT NPI APQP CI FMEA D Sims DFM PMS Supply DISTRIBUTION Work cell/s SMS FDC Automation/Robotics/AGVs / MH CAM TPM AI&TS QCS WH ERP MPS SFC

CAE/CAD ERP

Product Platform Perspective only WHM/GTS WHM/GTS Automation Integrators/Consultants
  • Autom. OEMs
Supply Chain Management Providers

The Factory of the Future…

Warehousing Integrators

LEAN Thinking will be a strong pre–requisite! Sustainable to Economy/Environment/Community Connected (IIoT) … Application of Disruptive Technologies Must be a LEAN/Automated/Integrated solution!

Waste-Free in all forms Flexible Reliable Capable to 6 Sigma Visual factory environment for human factors Configurable Learning system (Agile) Continuously Innovating and Improving.

The Factory of the Future…

slide-83
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2/23/2017 83 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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement The Image!!

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….

167

….. And Smelly!

M And…. Highly unstable as a career!

?

slide-84
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2/23/2017 84

168

TB M

EXCITE the NEXT GENERATION

Change ….

The Image of Manufacturing

Let’s Make Manufacturing

Industry Game-plan Checklist

Local Community Engagement ….. Work on the image

Encourage and help Re-engineer the “Image” of manufacturing value for every-one!! Work with Industry Associations to understand competitive goals across NAFTA Put industry where the people live who need the jobs! …. If not…. Relocate them! Where possible encourage the leverage of existing local resources and supply chains Make the rebuilding of small to large manufacturing facilities “easy and red tape free”. Plan to minimize exposure to high energy, infrastructure logistics and transportation costs Look at “manufacturing friendly” local taxes, Tariffs, Grants, savings and subsidies. Ensure local legislations ( Safety/Human Resources/Environmental) are “business friendly”. Encourage Import avoidance as well as export enhancement in fiscal rewards!!! Integrate/leverage existing clustered Industrial learning systems to provide a powerful workforce.
slide-85
SLIDE 85

2/23/2017 85 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 Balance Education/Training/Experience Focus on local population Ensure Learning is economically viable IMPROVE & Mobilize Supply Chain Strategy

+

Productivity Improvements + Local Community Engagement

Questions?

171 KEEP ASKING…. WHY?…
slide-86
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2/23/2017 86

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

Summary

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

Why…. Take Back Manufacturing

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

slide-87
SLIDE 87

2/23/2017 87

KEY Things to Remember

  • Manufacturing Globalization is reversible, and Globalization has been and gone before..
  • Manufacturing provides the strongest economic multiplier effect…..
$1 of Manufacturing generates $3 in Services & $1 in Resource demand.
  • North America has the ability to become self sustaining… we have people, skills knowledge,
educational ability, technology, capital, most natural resources above and below ground, and strong essential consumerism, with a rule of law and “reasonable” political will.
  • We need only a 10% increase in price/cost on only non essential items to reshore and re-
employee and build careers for all our citizens both young and old.
  • Economic growth does NOT need to be a driver of real economic prosperity
  • Global trade has been a very inefficient generator of real wealth, and will soon start to
create negative wealth unless adjusted.
  • Our most treasured right must be our national citizenship and the protection of personal
worth and the reversal of social disorder. 174 TBM

Predictions…..

  • Citizen National Rights will outweigh global others and will be enforced……
  • Future Youth will insist on balance of growth/prosperity/sustainability
  • Mature economies will restrict foreign trade due to national security and Trade balance.
  • Mature economies will focus on a balanced economy of manufacturing service and use of own
resources where possible.
  • A return to the “gold standard “ of balanced trade (or something equivalent) will drive future
international trade direction.
  • Corporate cash flow between nations will be controlled much more
  • Emerging economies will have to depend on organic growth rather than foreign trade leverage
(the china story will not be repeated)
  • National independence and sustainability within local trade blocs will be the new order.
  • IP transfer will be the new currency and be more equitable between nations.
  • Global carbon tax will be defined and enforced
  • Use of energy will be a key rethink and will modify economies behavior
  • Water will be a key resource for critical management and a socio-political issue.

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

slide-88
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2/23/2017 88

176 177

FOR OUR KIDS!!!

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

TBM

TBM Take Back Manufacturing

WWW.SME-TBM.ORG

slide-89
SLIDE 89

2/23/2017 89

END

178