COLLABORATION The Answer to Sustainable Manufacturing

1
COLLABORATIONThe Answer to Sustainable
Manufacturing
Robert G. Kiggans Vice Chairman, SCRA Applied
RD U.S. IMS Head of Delegation
2
AGENDA

• U.S. Manufacturing Strategy Policy
• Manufacturing Innovation
• IMS Program

3
U.S. Manufacturing Strategy Policy

• U.S. Manufacturing sector valued at about 1.6
  Trillion. Represents 60 of U.S. exports.
• Accounts for 70 of private sector research and
  development.
• However, losing ground in the face of global
  competition.
• Trade gap has widened to nearly 100 billion.

4
Presidents Council of Advisors on Science
Technology (PCAST)

• Issued report on Advanced Manufacturing and
  reminded us why manufacturing remains an
  essential driver of our economy.
• Government should play an important role through
  the development of an innovation policy.
• Support sustained investments in basic research
  to promote scientific discoveries, but also
  co-invest in precompetitive applied research.

5
(PCAST)

• Report also looked at areas such as tax, trade,
  workforce, small business, and education policies
  and how each either helped or hindered the
  manufacturing sector.
• Given PCASTs recommendations, the President has
  made revitalization of manufacturing a key part
  of his economic strategy.

6
Structural Cost of Manufacturing

• U.S. Manufacturers face a 20 cost burden over
  competitors from our largest trading partners.
• Corporate tax rates make up over half that burden
  as other countries have reduced rates.

U.S. Canada Mexico Japan China Germany U.K. Korea Taiwan France
1997 40 44 34 51 33 57 31 30 25 36
2010 40 31 30 40 25 29 28 24 17 33
The Manufacturing Institute MAPI - October 2011
7
U.S. Manufacturing Strategy and Policy

• President has established the Office of
  Manufacturing Policy to coordinate the federal
  governments manufacturing programs. Office
  co-chaired by Secretary of Commerce and Director
  of the National Economic Council.
• Presidents FY 2013 budget 2.2 billion for
  federal advanced manufacturing RD. (19
  increase over 2012)

An economy built to last demands that we keep
doing everything we can to.keep strengthening
manufacturing.
8
Manufacturing Innovation
9
Additive Manufacturing

• A production technique using 3D laser printing
  and advanced materials to print out physical
  products
• While not new (20 years in the making), could be
  poised to be the next real game-changer for the
  manufacturing industry.
• I understand that Airbus is even talking about
  printing out most of an airplane someday.

10
Crowdsourcing

• The act of outsourcing tasks, traditionally
  performed by an employee or contractor, to a
  large group of people or community, through an
  open call.
• Expect small to medium sized companies to apply
  this technique (using the web) to solve tough
  manufacturing problems
• Motivationaccess wider array of talent, generate
  better results, etc.

11
Service Oriented Manufacturing

• Vision where everything in the product life cycle
  is information driven and is encapsulated in
  modular services.
• Concept could enable a new class of
  businesses---brokers who have service agreements
  to rent excess capacity in manufacturing plants.
• Rockwell Automation is looking at cloud/SOA as
  the means for controlling factory operations and
  extending into the supply chain.

12
IMS Program
13
IMS Background

• Industry-led, global, collaborative research and
  development program providing the framework for
  conducting international manufacturing research
• Japanese initiative proposed in 1989 with a
  vision of global industrial cooperation and
  technology sharing
• Feasibility study conducted in 1992 1994
  formal program began in 1995 with seven
  participating Regions
• Structure consists of
• International Steering Committee (ISC) led by a
  Chairman
• Inter-Regional Secretariat (IRS)
• Head of Delegation for each Region
• Regional Secretariat in each Region
• ISC Chairmanship and IRS rotates every two years
  (currently headed by the European Union)
• World Manufacturing Forums on the future of
  advanced manufacturing held periodically
• Intellectual Property (IP) protected

14
Why IMS? (Rationale)

• Recent advances in electronic networks make
  global-level collaboration feasible and cost
  effective
• Environmental aspects of manufacturing and
  consumption cannot be tackled on merely a local
  or national level
• Effective use of knowledge as a foundation for
  addressing world-wide problems requires access to
  all available knowledge sources
• Manufacturing is no longer a national or regional
  concern. Consumers are demanding a free flow of
  products and services which requires a global
  scope

While many countries have negotiated bi-lateral
agreements to conduct cooperative research, the
IMS charter takes this one step further --
facilitating global solutions to manufacturing
challenges on a multi-lateral basis.
15
What is the IMS Vision?

• Enlarge and open world-wide markets
• Improve the utilization efficiency of resources
  (sustainable)
• Significantly enhance the quality of life in the
  world community through new product creation
• Enable greater standardization and sophistication
  in manufacturing operations
• Improve the quality of the manufacturing
  environment and the global environment
• Disseminate results of IMS projects and transfer
  knowledge
• Advance manufacturing professionalism

16
Who are the Member Regions?
European Union And Norway
United States of America
Korea
Mexico
Switzerland
17
The IMS Strategy

• What are the five Manufacturing Technology
  Platforms (MTPs)?
• Sustainability
• Energy Efficiency
• Key Technologies
• Standards
• Education

18
The IMS Strategy

• What are the Requirements for an MTP initiative?
• Three or more participating Regions sign a
  Memorandum of Agreement
• Minimum resource / funding level of 1M
• Funding for meetings/workshops provided by each
  partner or participating IMS Region
• Minimum duration of 12 months
• Partners will meet a minimum of two times per
  year
• May meet in conjunction with the ISC meetings

19
The IMS strategy provides a strong framework for
global cooperative research, facilitates quick
consortium formation and networking on a global
basis, and stimulates the broad dissemination of
information from these initiatives. Through
collaboration in the IMS program, we will
strengthen U.S. manufacturing and enhance the
quality of life of the world community.
Conclusion
20
BACK UP SLIDES
21
Manufacturings Multiplier Effect
Source U.S. Bureau of Economic Analysis, 2007
Annual Input-Output Tables
22
The Public Supports Manufacturing
23
The Public Supports Manufacturing
24
A Renaissance in Manufacturing?
Manufacturing Jobs in U.S. (000s)

• Over 400,000 jobs added in the last two years.
• Major consulting firms issue reports predicting a
  return of manufacturing from Asia.

25
Manufacturing Jobs for Someone Else
The Manufacturing Institute Deloitte -
September 2011
26
Manufacturing Jobs for Someone Else
The Manufacturing Institute Deloitte -
September 2011
27
The Skills Gap in Manufacturing

• 82 of manufacturers report a moderate or serious
  skills gap in skilled production.
• 74 of manufacturers report that this skills gap
  has negatively impacted their companys ability
  to expand operations.
• 69 of manufacturers expect the skills shortage
  in skilled production to worsen in the next 3-5
  years.
• 5 of all jobs in manufacturing unfilled due to
  lack of qualified workers.

The Manufacturing Institute Deloitte -
September 2011
28
Manufacturers Need New Workforce Strategies

• Top sources for new employees

The Manufacturing Institute Deloitte - October
2011
29
The IMS Strategy
1. Sustainability Sustainable manufacturing is a
platform for development of innovative
manufacturing technologies which address world
wide resources shortages and excess environmental
load to enable an environmentally benign life
cycle. 2. Energy Efficiency Energy Efficient
manufacturing is a platform for improving
efficiency and reducing the carbon footprint in
energy utilization for manufacturing and
operational processes. The energy efficiency
platform will result in reduced manufacturing
costs and global warming impact. 3. Key
Technologies Key Technologies is a platform that
includes those technologies that will yield a
high impact on the next generation of
manufacturing. These technologies include Model
Based Enterprise, nanotechnology, and Smart
materials.
30
The IMS Strategy
4. Standards Standards is a platform that will
focus on manufacturing research issues that can
benefit from standardization to create open
manufacturing and product standards that are
accessible to everyone and enhance innovation
globally. IMS involvement in standards would
also focus on key areas where the lack of
standards is impeding progress in any of the
other MTP areas. 5. Education Education is a
platform for educational programs designed for an
information based knowledge worker environment
that supports manufacturing in the future.
Research listed under this platform will
contribute to the development of a coherent
vision of manufacturing education across the
whole vocational and professional community.
31
The IMS Strategy

• Focus on Manufacturing Technology
• Platforms (MTPs)
• What are MTPs?
• Knowledge sharing platforms meant to
  facilitate the exchange of information and
  generate new ideas and research goals
• What is unique about MTPs versus traditional IMS
  projects?
• Ongoing or new start Regional initiatives can
  be integrated within an MTP and kicked off
  under a simple Memorandum of Agreement

32
(No Transcript)