Take Back Manufacturing . E ssential for Sustainable Supply Chains in - PDF document

5/5/2016 TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing …. E ssential for Sustainable Supply Chains in the future. The Globalized manufacturing approach with efficient supply chain management has been the business norm in the last 2 decades and many experts now predict yet another sea change underway to move to a more balanced sourcing approach involving reshoring and localized trade blocs. The logic of Sustainable supply chains and a return to LEAN business practices throughout the whole supply chain and what that will mean to how business will be done will be the next initiative that many supply chain managers will have to understand and embrace. We will explain the latest global trends and sustainable supply chain concepts and how the events that are unfolding will affect us all. TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing …. E ssential for Sustainable Supply Chains in the future. Or how to reverse 30 years of poor global management Nigel Southway TBM Advocate & Past Chair Society Manufacturing Engineers 1

5/5/2016 Manufacturing and Engineering has been a good career for a lot of us!! It’s been good to me! 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 2

5/5/2016 BRITISH 60’s 5 MODS THE BEATLES BRITISH 60’s British Rock Music The MODs Miniskirts MINI The Small Faces THE WHO 3

5/5/2016 Career choice… WHICH INSTRUMENT?? This?…. OR This?…. 7 NIGEL SOUTHWAY www.nigelsouthway.com • 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 Aerospace Electronics / Space-Systems group Bristol Division England Student Engineering Apprenticeship Indentured and Integrated with industry British Engineering Apprenticeship Embedded Education within Industrial Training program 4

5/5/2016 CONCORDE SST 002 April 1969 Proto-test platform Mach 2 (1350 mph) 120 Passengers INTELSAT/COMSTAR/ANIK Communication Satellite 5

5/5/2016 Space Shuttle Remote Manipulator System (SRMS) Canada 11 NIGEL SOUTHWAY www.nigelsouthway.com • 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 6

5/5/2016 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…. (Bristol) • Manufacturing Engineer (1972) • MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation 1980,s • Engineer / Manager / Director / VP Operations / General Manager (1992) • Consultant/Change Agent/Educator/Coach for LEAN business improvement • AUTHOR : CYCLE TIME MANAGEMENT … Fast Track to Productivity Improvement Clients in Canada, USA, Asia and Europe. Ever-Ready Battery, BFL, GlaxoSmithKline. Automotive, Aerospace, Avionics, J.M. Schneider Inc, British Airways, Baxter, Procter and Gamble, BTR, Ciba Corning, High-tech and consumer Electronics, Inland Steel, Tectrol, Citibank, Morton Metal-craft, Tiercon, Royal Ford, Pharmaceuticals, Food, Beverage. Inter-City Products, ACS, GE MARCONI, FABCO, Imperial Rubber, Clubcar Consumer Products and Appliances Thompson Pipe & Steel. GTD, Toro ECCO, VERTIGO, John Deere NEXUS A 0 Smith, Steel, Fabrication and Mining Canadian Pools, NOMA, Grote Industries, Telephoto McCoy www.nigelsouthway NBS, Service and Financial Industries. SXA Polaris Royal Canadian Mint, Supported Clients World Wide on LEAN THINKING & Productivity Improvement. • Electronic assembly • Bubblegum and candy factory • Meat processing plant.. • Food additive producer • Metal fabrications • Data-com system provider • HVAC Manufacturing • Computer software developer • Toothpaste manufacturing • Mint (Coins and Medals) • Steel mill processes • Security equipment • Bank check clearing house • Off-road equipment • US army medical Corp • Water pipeline manufacturer • Whiskey distilling • Exhaust System Manufacturing • Dry-cell battery production • Commercial swimming pool manufacturing • Credit card emboss house • Auto dealerships • Electrical products • Medical equipment Design/Manufacturer • Custom Power-Supplies • Oil extraction equipment manufactures • Computer design/manufacture • Nano-tech Battery Manufacturing • Sheet-metal fabricators • Automotive parts supplier • Plastic injection molding • Generic drug manufacturer • Truck Components supplier • Vaccine Development and Manufacturing • Construction equipment • Robotic Medical surgical devices • Oil industry equipment providers • Commercial Heating Equipment • Aerospace equipment providers • Soap factory Canada / USA / Mexico / UK / China / Russia / India / Ukraine NEXUS 7

5/5/2016 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 15 GLOBALIZED MANUFACTURING 2004 Onward 8

5/5/2016 CHINA MANUFACTURING Metal and Plastics + Welded Assemblies Components Mixed Volumes Subassemblies Some final assemblies 18 9

5/5/2016 CHINA MANUFACTURING CHINA MANUFACTURING CHINA MANUFACTURING 10

5/5/2016 CANADA MANUFACTURING The future of Manufacturing in Ontario’s economy. 21 CANADA MANUFACTURING A NORTH AMERICAN PROBLEM The future of Manufacturing in Ontario’s economy. 22 11

5/5/2016 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. TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing TBM 25 Technical Associations 3 Trade associations 5 Educational groups 6 Economic Policy makers 7 Media experts 3 Local government 5 Industry experts A Forum Dedicated to Restoring our Manufacturing Sectors. www.SME-TBM.org 12

5/5/2016 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 http://www.canadianmanufacturing.com/fabrication/production/taking-back-manufacturing-51066 13

5/5/2016 Professional Engineers Ontario http://sme-tbm.org/app/download/5809147904/PEO+TBM+article.pdf 28 14

5/5/2016 BNN BUSINESS NEWS NETWORK What can Canada learn from German Manufacturing? 29 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. 30 15

5/5/2016 TBM Take Back Manufacturing WWW.SME-TBM.ORG TBM …Our Ultimate Goal SORRY! We ask for an open mind as we deliver this important message and perspective. Honest and Factual Provocative concepts Perhaps test and conflict with your current beliefs Mind bending, Scary, Frustrating, Inspiring. 31 TBM Take Back Manufacturing WWW.SME-TBM.ORG WHY? ..Take Back Manufacturing FOR OUR KIDS!! 32 16

5/5/2016 This is NOT a game!!!... Our Kids will Believe we don't make things!!! ? ? ? ? 33 GLOBALIZED MANUFACTURING 17