AAMA/AIAG QUALITY CONFERENCE. Presented by Douglas J. Jensen, Ed.D. President - Alabama Technology Network (ATN) January 28, 2016

Transcription

1 AAMA/AIAG QUALITY CONFERENCE Presented by Douglas J. Jensen, Ed.D. President - Alabama Technology Network (ATN) January 28, 2016

2 TODAY S PRESENTATION WILL FOCUS ON: Who/What is ATN? What is MEP MEP Impact to the Automotive Industry Questions?

3 ABOUT ATN WORKING WITH EXISTING BUSINESS & INDUSTRY Applied Engineering and Technology Implementation Research Career Training

4 ISO 9001 Certified ATN Mission To provide Industry and Business the tools, training, and resources to excel ATN Vision ATN will be the driving force that makes existing Alabama companies the most profitable and productive in the world

5 ATN s MANUFACTURING EXTENSION PARTNERSHIP HISTORY UA Centers of Excellence 501(c)3 Non-Profit Division of ACCS UA Centers of Excellence 5 Centers Local Partners MEP Centers 9 MEP Centers MEP Centers 15 MEP Centers

6 ATN SERVICE SITES Alexander City Central Alabama Community College Birmingham Jefferson State Community College Satellite in Lawson State Brewton Jefferson Davis Community College Satellite in Mobile Eufaula/Dothan Wallace Community College Satellite at Enterprise State Community College Gadsden Gadsden State Community College Hanceville Wallace State Community College Jasper Bevill State Community College Montgomery/Selma Wallace Community College Selma Satellite at Trenholm State Satellite at Shelton State Muscle Shoals Northwest-Shoals Community College Rainsville Northeast Alabama Community College Thomasville Alabama Southern Community College

7 WE ARE ATN

8 THE MEP CONNECTION Alabama Affiliate Manufacturing Extension Partnership 5 th National Ranking Consistently ranked in the top 5 among MEP centers

9 Program Started in 1988 At least one center in all 50 states by 1996 National Network 60 Centers with over 550 Field Locations. System wide, Non-Federal Staff is over 1,200. Contracting over 3,200 third party service providers. Partnership Model Federal, State and Industry MEP System Budget $130 Million Federal Budget with Cost Share Requirements for Centers MEP PROGRAM IN SHORT Global Competitiveness Program was created by the 1988 Omnibus Trade And Competitive Act Evolving Role Program continues to evolve in order to support manufacturers during changing economic situations.

10 Focus on meeting manufacturer s short term needs, but in context of overall company strategy MEP Center areas of common strength - Lean Manufacturing - Quality Systems, Process Improvement - Engineering Services for products and processes - Growth Services new or expanded market opportunities - Sustainability - Workforce Development Reached 29,000 manufacturing firms and completed over 12,000 projects per year* WHAT MEP DOES NATIONALLY *Based on FY2015 MEP Center reported performance data.

11 MEP CLIENT NETWORK REPORTED CLIENT IMPACTS NATIONALLY 49,011 19,466 $5.7 Billion $2.3 Billion $1.2 Billion $3.1 Billion

12 MEP NATIONAL STRATEGIC GOALS Enhance the competitiveness of U.S. manufacturers, with particular focus on small and medium-sized companies. Support national, state, and regional manufacturing eco-systems and partnerships. Serve as a voice to and voice for manufacturers to engage policy makers, stakeholders, and clients. Develop MEP s capabilities as a high-performance system and learning organization.

13 MEP PROGRAM INITIATIVES Growth and Innovation Sustainability Supply Chain Technology Acceleration Workforce Make it in America MEP s Program Initiatives are aimed to help manufacturers identify opportunities that will accelerate and strengthen their growth and competitiveness in the global marketplace

14 PARTNERSHIPS MEP Centers serve as an invaluable partner to states by: Educating Providing Outreach Connecting the Gap Supporting local and regional partners on small and medium sized manufacturer needs and drivers of behavior. to manufacturers by connecting them to other programs and services offered by partner organizations. between technology developers / R&D organizations and manufacturers: finding firms that are interested in a particular technology, as well as informing tech developers of manufacturer s technology needs workforce development programs.

15 A SAMPLE OF MEP SERVICES Lean Manufacturing Waste Elimination 5S, Value Stream Mapping, Pull Systems Quick Changeover, Visual Factory Lean Certificate Series Environmental Health & Safety OSHA Walk-Throughs, Ergonomics, ISO OSHA 10 & 30 Hr., PIT HAZWOPER, HAZMAT, Confined Space Entry Industrial Maintenance PLC s, Drives, DCS Hydraulics, Pneumatics, Pumps, Predictive/Preventive Maintenance Certified Maintenance Technician Quality Systems & Engineering ISO 9001:2015, ISO 14001:2015 ISO/TS 16949, MSA, APQP, FMEA, SPC Review and Implementation Innovation & Sustainability Supply Chain Management Innovation Engineering Industrial Leadership Team Building Sustainability Community/Economic Development Economic Development Initiatives Technological Support to Schools Stakeholder Support BEST Robotics

16 TECHNOLOGY ACCELERATION Technology Scouting and Technology Driven Market Intelligence Accelerating opportunities to leverage and adopt technology is key to long-term business growth and productivity. MEP Centers serves as the connection between manufacturers and the technology opportunities and solutions they require to grow and compete in the global marketplace. MEP Centers also serves to assist manufacturers as they adopt, integrate, and implement these technologies into their products and processes. SBIR Assistance and Technology Collaboratives NNMI Institutes for Manufacturing Innovation (IMIs)

17 SUPPLIER SCOUTING Connects capabilities, capacities, business interests of U.S. manufacturers with needs and business opportunities of various manufacturing supply chains. Connects government agencies that have Buy America(n) provision requirements, with capable and interested U.S. manufacturers. Supplier Scouting has identified and connected domestic manufacturers with business opportunities for supply chains in following industry sectors: energy products passenger rail cars and rail locomotive railroad track and physical infrastructure defense weapon systems and defense support equipment Highway, Rail, and Water transportation systems laboratory instruments consumer products power utilities FOR BUY AMERICA ASSISTANCE >12 Participating Government Agencies >200 Items Scouted >60 BUY AMERICA(N) MATCHES of products that previously were awarded waivers, to be manufactured in the U.S.

18 SUPPLY CHAIN MEP Centers Supply Chain efforts focus on helping manufacturers strategically understand, maintain and expand their positions in domestic and global supply chains. MEP Centers proactively engages with respective manufacturing supply chains to systemically address the needs of: top-down overall supply chain individual manufacturers operating at every level of the supply chain company-to-company interfaces within the supply chain Supply Chain Optimization Supply Chain Technology Acceleration Supply Chain Sustainability Supplier Improvement

19 MEP s INDEPENDENT CLIENT SATISFACTION PROCESS

20 MEP METRICS 2015 Client Survey Data Unique Clients Served Jobs Created Retained Increased & Retained Sales Cost Savings to Mfgs. 7,275 68,477 $7 Billion $1 Billion

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30 Southeastern Automotive Industry

31 FUTURE IMPACTS FACING MANUFACTURING

32 WHAT DO THE NUMBERS TELL US? Having skilled manufacturing roles go unfilled influences several different operational metrics: Quality Overtime cost Production down time Production cycle time Scrap Customer satisfaction lead time, delivery and quality a blow to the bottom line.

33 Projected lost annual earnings for a sample manufacturer Midwest manufacturer 1,400 non-management roles at average $20/hr. total payroll of $56M $500M annual revenue Severe shortage of skilled labor with 8-10% skilled roles unfilled 12% + 10% + 8% = 11% Increase in overtime Increase in down time Increase in cycle time or $4.6M in lost earnings annually $1M annual OT cost $45M less revenue generating production due to a 9% increase in OEE resulting in $3.6M less earnings 12% increase in the average 10% overtime cost 9% decrease in OEE is the equivalent lost production of $45M revenue from world-class levels Source: ACCENTURE 2014 Manufacturing Skills and Training Study

34 Questions?

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