Engineering Globalization

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Engineering Globalization

• Engineers Week Dinner
• 2006
• Dr. Timothy Greene

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Tonights Topics

• Impact of Engineering Globalization on Southwest
  Michigan
• College of Engineering Applied Sciences
  accomplishments and direction

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Engineering Globalization

• Thesis
• Engineering design has become a global commodity
• Impact
• Michigans engineering work can be sent anywhere
  in the world
• Engineering work from anywhere in the
• world can be sent to Michigan

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Value of Technology

• 85 of measured growth in U.S. income per capita
  is due to technology change

-Rising Above The Gathering Storm
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Some Worrisome Indicators

• Only 1 of 16 countries polled listed the US as
  the most attractive place in the world to lead a
  good life
• Cost
• For the first time, this most capable high-energy
  particles accelerator on Earth will, beginning in
  2007, reside outside the U.S.

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Worrisome Indicators High Technology

• The U.S. is a net importer of high-technology
  products.
• US global high-technology exports have fallen
  from 30 to 17 over 20 years
• US trade balance in high-technology manufactured
  goods shifted from 33 billion (1990) to -24
  billion (2004).

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Worrisome Indicators Chemical Companies

• Chemical companies closed 70 facilities in 2004
  and have tagged 40 more for shutdown.

US 1
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Worrisome Indicators Math Science Skills

• About 1/3 of 4th graders and 1/5 of 8th graders
  lacked the competence to perform basic math
  computations.
• US 12th graders recently performed below the
  international average for 21 countries on a
  general test of mathematics and science
• In 1999, only 41 of US 8th graders received
  instruction from a teacher who specialized in
  mathematics lower than the international average
  of 71

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Worrisome IndicatorsLow-wage vs. High-wage
employers
Low wage
High wage
44 of new Jobs
29 of new Jobs
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Worrisome Indicators World-wide Undergraduate
Degrees in Science and Engineering
Japan 66
China 59
Germany 36
US 32
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Worrisome Indicators 2004 Graduates of
Engineering
China
India
US
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National Academy of Engineering Institute of
Medicine Committee on Prosperity in the Global
Economy of the 21st Century National Academy of
Science

• Change
• 10 actions federal policy makers could take
• Enhance science technology in the US
• Compete, prosper, and be secure in Global
  Community
• Strategy for implementation

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Committee Findings

• Report Rising Above the Gathering Storm
  Energizing and Employing America for a Brighter
  Economic Future
• Having reviewed trends in US and abroad, the
  committee is concerned that scientific and
  technical building blocks of economic leadership
  are eroding at a time when many other nations are
  gathering strength

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Committee Findings (cont.)

• 3. The US must prepare to preserve its strategic
  and economic security. Because other nations have
  the competitive advantage of a low-wage
  structure, the US must compete by optimizing its
  knowledge-based resources, particularly in
  science and technology, and sustain the most
  fertile environment for new and revitalized
  industries and the well-paying jobs they bring.

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Committee Recommendations

• 10,000 Teachers, 10 Million Minds, and K-12
  Science and Mathematics Education
• Recommendation A Increase Americas
• talent pool by vastly improving
• K-12 science and mathematics
• education

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Committee Recommendations

• Sowing the Seeds
• Through Science and
• Engineering Research
• Recommendation B Sustain and strengthen the
  nations traditional commitment to long-term
  basic research that has the potential to be
  transformational to maintain the flow of new
  ideas that fuel the economy, provide security,
  and enhance the quality of life.

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Committee Recommendations

• Best and Brightest in Science and
• Engineering Higher Education
• Recommendation C Make the U.S. the most
  attractive setting in which to study and perform
  research so that we can develop, recruit, and
  retain the best and brightest students,
  scientists, and engineers from within the U.S.
  and throughout the world.

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Committee Recommendations

• Incentives for Innovation
• and the Investment Environment
• Recommendation D Ensure that the U.S. is the
  premier place in the world to innovate invest in
  downstream activities such as manufacturing and
  marketing and create high-paying jobs that are
  based on innovation by modernizing the patent
  system, realigning tax policies to encourage
  innovation, and ensuring affordable broadband
  access

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Off-shoring Issues

• Is it simply moving work to where these are
• Cheaper hourly costs
• Cheaper benefit costs
• Fewer safety requirements
• Fewer union problems
• Fewer taxes
• Or is it moving work to where
• Customer growth is
• Diversification
• 24/7 service
• Highly motivated trained work force

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Off-shoring Truths

• Companies have long ago dropped national
  loyalties
• Board of Directors have become truly
  internationalized
• Growth markets are in developing countries
• The new best universities are not in the U.S.
• Companies that offshore are growing in both
  revenues and profits faster than those who have
  not

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Off-shoring Truths (cont.)

• Companies that offshore have seen
• Increased customer responsiveness (closer to the
  customers)
• Increased quality
• Decreased material costs(closer to the suppliers)
• Nearly every process can be bought offshore

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What can not be off-shored

• Face to face customer service
• Face to face supplier relationships
• On site design and engineering
• Construction engineering
• Consulting on site
• Sales engineering
• (on site problem solving)

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A New Approval to Off-shoring

• Off-shore companies are buying U.S. companies to
  get the face to face relationships
• Tata Technologies (2,000 Indian engineers
  automotive design) recently bought Incat
  International (700 U.S. engineers Novi,
  Michigan) currently having 100 engineers for U.S.
  office

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Proctor Gamble

• CEO Alan Lafley wants 50 of all new Proctor
  Gamble products to come from outside U.S. by 2010
  versus 20 now.

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General Electric

• 19,000 back office process workers spun off into
  GenPact in 2004 saved 30 to 40 in back office
  process labor costs after the first year.

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DuPont

• 60,000 employees in 70 nations need HR services
  (records, payroll, benefits, etc.)
• Outsourced services to Convergys Corp. and expect
  to save 20 in processing costs in year one and
  30 in year two

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Areas where companies are looking to outsource
work process
Human Resources 13 Billion
Engineering 27 Billion
Logistics Procurement 179 Billion
Info Tech 90 Billion
Analytics 12 Billion
Finance Accounting 14 Billion
Manufacturing 170 Billion
Customer Care 41 Billion
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Five Offshore Practices That Pay Off

• Go offshore for the right reasons
• Choose your model carefully
• Get your people on board
• Be prepared to invest time and effort
• Treat your partners as equals

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Leading Companies in the Off-shoring
Outsourcing World
Call Centers
Software Development
Business Services
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To Where Are Companies Outsourcing?
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Outsourcing to Africa

• South Africa has over 500 call centers
• Lufthansa
• General Electric
• Cairo-based Xceed Contact Center
• Microsoft
• General Motors
• Oracle
• Carretour

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Engineering Research and Americas Future
Meeting the Challenges of a Global Economy (2005)

• http//www.nap.edu/books/0309096421/html/index.htm
  l

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Engineering Research The Engine of Innovation

• American success has been based on the
  creativity, ingenuity, and courage of innovators,
  and innovation will continue to be critical to
  U.S. success in the twenty-first century.

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How Do You Slow Off-shoring?

• Innovation!
• Those entities lead in innovation
• control the market

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Examples of Recent Innovation

• Transistors Integrated Circuits
• Computerization Mass communication
• Cell Phones Internet
• Electromagnetic Radiation Radios
  X-rays,
• Fiber Optics, Cell Phones, MRI, Micro Waves, etc.

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U.S. Status in Innovation

• The US must be an innovation-driven nation that
  can capitalize on advances in life sciences,
  physical sciences, and engineering
• The US risks becoming a consumer of innovations
  developed elsewhere rather than a leader.

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Trends in Innovation

• A large and growing imbalance in federal research
  funding engineering physical science vs.
  biomedical life science
• Increased emphasis on applied RD in industry and
  government-funded research at the expense of
  fundamental long-term research

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Trends in Innovation (cont.)

• 3. Growing uncertainty about the ability of the
  US to attract and retain gifted science and
  engineering students from abroad
• 4. Erosion of the engineering research
  infrastructure due to inadequate investment over
  many years

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Imbalance in the Research Innovation Portfolio
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Recommendations

• The federal RD portfolio be enhanced by
  increasing funding for research in engineering
  physical science
• Long-term basic engineering research should be
  reestablished as a priority for US industry. The
  federal government should design and implement
  tax incentives and other policies to stimulate
  industry investment in long-term engineering
  research

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Recommendations (cont.)

• 3. Federal state government and industry should
  invest in upgrading and expanding laboratories,
  equipment, and information technologies and
  meeting other infrastructural needs of research
  universities and schools of engineering to ensure
  that the national capacity to conduct world-class
  engineering research is sufficient to address the
  technical challenges.
• 4. Considering the importance of technological
  innovation to the nation, a major effort should
  be made to increase participation of US students
  in engineering.

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Recommendations (cont.)

• 5. All participants and stakeholders in the
  engineering community should place higher
  priority on encouraging women underrepresented
  minorities to pursue careers in engineering.
• 6. A major federal fellowship-traineeship program
  in strategic areas (e.g. energy info-, nano-,
  and biotechnology knowledge services, etc.)
  should be established to ensure that the supply
  of next generation scientists and engineers is
  adequate.

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Recommendations (cont.)

• 7. Immigration policies and practices should be
  streamlined to restore the flow of talented
  students, engineers, and scientists worldwide
  into US universities and industry.
• 8. Links between industry and research
  universities should be expanded and strengthened.
  
• 9. Multidisciplinary discovery-innovation
  institutes should be established on the campuses
  of research universities to link fundamental
  scientific discoveries with technological
  innovations to create products, processes, and
  services.

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The Final Solution

• In a global, knowledge-driven economy,
  technological innovation the transformation of
  knowledge into products, processes, and services
  is critical to competitiveness, long-term
  productivity growth, and the generation of
  wealth.

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• Highlights of what the College of Engineering has
  accomplished and the colleges direction

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CEAS Vision

• A scholarly community dedicated to excellence
  through student-centered education and research
  emphasizing professional practice in engineering
  and applied science

Robo-Bronco
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Number of Bachelor Graduates
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Masters Enrollment
CS Moved to CEAS
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Ph.D. Enrollment
CS Moved to CEAS
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Research Award Dollars
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CEAS Cornerstones
Engagement
Innovation
Globalization
Leadership
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Engagement

• Definition
• Experience based learning
• Involving students with their profession as they
  learn
• Faculty members and staff who are active in their
  professions
• Purpose
• Produce job ready graduates with the ability to
  grow in their profession

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Examples of Engagement

• Senior Design Conference
• Real world examples and applied problems used in
  classes
• Student design-build competitions
• Sunseeker 6th in the Nation
• SAE Formula One Race Car
• ASCE Concrete Canoe
• AIChE Chemical Car

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Examples of Engagement(continued)
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Examples of Engagement (continued)

• CEAS Learning Communities
• Cooperative Education Internships
• Student and faculty research
• Student and faculty Professional societies

• Faculty leadership in local, regional, and
  national positions
• Student conferences National and international
  conferences

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Examples of Engagement (continued)

• Laboratory extensive curricula
• Volunteer projects
• Habitat for Humanity
• Rockets program
• Intel Science and Engineering Fair (hosted)
• Etc.
• Industry plant tours
• Industry visits to campus
• Faculty and alumni mentoring
• NSF REU programs

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Innovation

• Definition
• The discovery, application, and dissemination of
  new knowledge
• Purpose
• Move the profession and society forward by
  providing engineers, scientists and technologists
  with new capabilities
• Opportunity to add resources to the college.
• Faculty development assuring we are technically
  current

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Technology Curve
Basic Research
Applied Research
Technology Transfer (Application of New
Technology)
Use (Deployment, Training, Service)

Technology Maturity Level
CEAS
Time to Technology Maturity
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Research Foci

• Advanced Vehicle and Development Simulation
• Product Design and Manufacturing
• Life Sciences and Biotechnical
• Engineering Education

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Globalization

• Definition
• If engineering knowledge can be digitized, it can
  be moved and performed anywhere in the world.
• Companies now look for engineering and technology
  solutions world wide.
• Purpose
• Our graduates must be prepared to work in a
  global engineering and applied sciences industry.
• Our faculty work in global disciplines.

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Examples of Globalization

• How we might teach it
• Certificate in globalization
• Faculty-led tours
• Study abroad
• Faculty and student exchanges (visiting scholars)
• International conferences (attended or sponsored)
• Examples within classes
• Twinning
• University to university agreements
• Foreign language minors

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Leadership

• Definition
• Excellent communication skills
• Excellent teamwork skills
• Ability to lead others and be led by others
• Ability to lead at work, in the profession and in
  the community
• Excellent professional ethics and morals
• Understand the issues including environmental,
  economic, social, political, safety, and diversity

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Leadership

• Purpose
• To graduate engineers, technologists, and applied
  scientists who are and will continue to be
  leaders in their profession and community.
• To ensure our faculty continue to be leaders in
  their profession and community.

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CEAS Katrina Fund Raiser
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CEAS Mission

• To educate our learning community for life-long
  excellence in responsible professional
  leadership. (Engagement and Leadership)
• To increase knowledge through collaborative
  discovery, integration, application, and
  teaching. (Research)
• To serve as a resource and partner to our
  constituents. (Globalization, Leadership,
  Research, and Engagement)
• To prepare job-ready graduates for the global
  market. (Engagement and Leadership)

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Committee Recommendations and Actions (cont.)

• Action A-1 Annually recruit 10,000 science
  mathematics teachers by awarding 4-year
  scholarships and thereby educating 10 million
  minds
• Action A-2 Strengthen the skills of 250,000
  teachers through training and education programs
  at summer institutes, in masters programs, etc.
• Action A-3 Enlarge the pipeline by increasing
  the number of students who take AP and IB science
  mathematics courses.

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Committee Recommendations and Actions (cont.)

• Action B-1 Increase the federal investment in
  long-term basic research by 10 a year over the
  next 7 years.
• Action B-2 Provide new research grants of
  500,000 each annually, payable over 5 years, to
  200 of our most outstanding early-career
  researchers.
• Action B-3 Institute a National Coordination
  Office for Research Infrastructure to manage a
  centralized research-infrastructure fund of 500
  million per year over the next 5 years.
• Action B-4 Allocate at least 8 of the budgets
  of federal research agencies to discretionary
  funding.

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Committee Recommendations and Actions (cont.)

• Action B-5 Create in the Department of Energy
  (DOE) an organization like the Defense Advanced
  Research Projects Agency (DARPA) called the
  Advanced Research Projects Agency-Energy
  (ARPA-E).
• Action B-6 Institute a Presidential Innovation
  Award to stimulate scientific and engineering
  advances in the national interest.

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Committee Recommendations and Actions (cont.)

• Action C-1 Increase the number and proportions
  of US citizens who earn physical-sciences,
  life-sciences, engineering, and mathematics
  bachelors degrees by providing 25,000 new 4-year
  competitive undergraduate scholarships each year
  to US citizens attending US institutions.
• Action C-2 Increase the number of US citizens
  pursuing graduate study in areas of national
  need by funding 5,000 new graduate fellowships
  each year.
• Action C-3 Provide a federal tax credit to
  encourage employers to make continuing education
  available (either internally or through colleges
  and universities) to practicing scientists and
  engineers.

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Committee Recommendations and Actions (cont.)

• Action C-4 Continue to improve visa processing
  for international students and scholars
• Action C-5 Provide a 1-year automatic visa
  extension to international students who receive
  doctorates, or the equivalent in science,
  technology, engineering, mathematics, or other
  fields of national need at qualified US
  institutions to remain on the U.S. to seek
  employment. If these students are offered jobs by
  U.S.-based employers and pass a security
  screening test, they should be provided automatic
  work permits and expedited residence status.

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Committee Recommendations and Actions (cont.)

• Action C-6 Institute a new skills based,
  preferential immigration option.
• Action C-7 Reform the current system of deemed
  exports

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Committee Recommendations and Actions (cont.)

• Action D-1 Enhance intellectual-property
  protection for the 21st century global economy
• Action D-2 Enact a stronger research and
  development tax credit to encourage private
  investment in innovation
• Action D-3 Provide tax incentives for U.S.-based
  innovation
• Action D-4 Ensure ubiquitous broadband Internet
  access.

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