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

1/25/2015 TBM Take Back Manufacturing WWW.SME-TBM.ORG TBM Take Back Manufacturing …. E ssential for Sustainable Supply Chains in the future. 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 have a local expert that can brief us on the latest global trends and sustainable supply chain concepts and how the events that are unfolding will affect us all. 1

… 1/25/2015 ………………………………………………………………………………….. TBM Take Back Manufacturing WWW.SME-TBM.ORG Nigel Southway C.Eng IEEE . MSc BIM . SME. Author. Author of CYCLE TIME MANAGMENT ... Fast Track to Time Based Productivity Improvement …. A ground breaking LEAN Thinking text book on the concept and implementation of Business Cycle Time reduction and continuous improvement.. Provides consulting coaching and education on Business Productivity Improvement and Advanced Manufacturing Engineering to all types of business sectors and helps develop a Vision, Strategy and Evolution plan to attack waste, capture productivity improvements, increase profits, and become more competitive in the global market. He is an architect of change for many major organizations across many industrial sectors on improvement and organizational change and is currently coaching, consulting and educating worldwide on Business Improvement Initiatives, Joint Ventures, New Product Introduction Systems, Global Technology Transfer projects and Sustainable Supply Chain Management. Nigel is Society Manufacturing Engineering Toronto Secretary and Past Chair in 2012-2013, holds the SME Presidents Award, and is the leading advocate for the Take Back Manufacturing Forum and the North American Reshoring initiative in Canada. Toronto Chapter Society of Manufacturing Engineers WWW.SME.ORG Premier source for manufacturing knowledge, education and networking. SME Toronto WWW.SMETORONTO.CA Nigel Southway SME Toronto Secretary/Past Chair 2012/2013 2

1/25/2015 TBM Take Back Manufacturing WWW.SME-TBM.ORG Vision of the reality The Global Outlook The Future Challenge 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) • 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. NEXUS www.nigelsouthway 3

1/25/2015 INDUSTRY WEEK 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 4

1/25/2015 GLOBALIZED MANUFACTURING 2004 Onward CANADA MANUFACTURING The future of Manufacturing in Ontario’s economy. 10 5

1/25/2015 CANADA MANUFACTURING A NORTH AMERICAN PROBLEM The future of Manufacturing in Ontario’s economy. 11 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. 6

1/25/2015 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 14 7

1/25/2015 TBM Take Back Manufacturing WWW.SME-TBM.ORG SORRY! We ask for an open mind as we deliver this important message and perspective. Honest and Factual Provocative Argumentative Mind bending Scary Frustrating Inspiring 15 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. 16 8

1/25/2015 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 9

1/25/2015 Professional Engineers Ontario http://sme-tbm.org/app/download/5809147904/PEO+TBM+article.pdf 20 10

1/25/2015 BNN BUSINESS NEWS NETWORK What can Canada learn from German Manufacturing? 21 TBM Take Back Manufacturing WWW.SME-TBM.ORG WHY? ..Take Back Manufacturing FOR OUR KIDS!! 22 11

1/25/2015 This is NOT a game!!!... Our Kids will think we don't make things!!! ? ? ? ? 23 GLOBALIZED ? ? MANUFACTURING We Question its future Sustainability 12

1/25/2015 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 25 CANADA TBM More than 500,000 jobs lost in 6 year period (300,000 Ontario) Only 25000 jobs added in Resource Sector 25% Reduction (Quantity and Quality) 50% of Manf SME’s lost in Ontario 10% Productivity Loss due to reduced Capacity utilization 2009 2010 2011 Source: Statistics Canada 1,000,000 Young Canadians Redeployed to part time Now un or under employed!! and lower paying service jobs Yet ….we have a skill shortage!!! (NOT a labor shortage) 26 13

1/25/2015 What happened? 27 OUR BIG BROTHER USA - 1% GDP Washington Consensus Economists started to follow an almost Religious fanatical view of free market doctrine (US GDP 2010=14000B) 28 14

1/25/2015 OUR BIG BROTHER USA -1% GDP Adopted Free Market Ideology… Chased Emerging Markets Forgot National Economic Controls Used liberalized Trade approach Allowed free flow of capital Removed trade barriers and controls Accepted Out of Balance Trade. Assumed More Service Sector Jobs???? Assumed local exports would grow/balance (US GDP 2010=14000B) 29 USA -1% GDP Globalized Trade - 4% GDP Cumulative Deficit is now 50% 2010 GDP Significant government deficit and foreign borrowing (US GDP 2010=14000B) 30 15

1/25/2015 USA -1% GDP HUGE ONGOING TRADE IMBALANCE Globalized Trade Some experts call this “Wealth transfer” - 4% GDP Cumulative Deficit is now 50% 2010 GDP “Friedman’s folly” Significant government deficit and foreign borrowing 31 (US GDP 2010=14000B) Global Trade Balance Imbalance 32 16