Transcript The Evolution of MEP: The New Strategy - Home

The Evolution of MEP: The New
Strategy
Roger D. Kilmer, Director
NIST Manufacturing Extension Partnership
[email protected] | (301) 975-4676 | www.nist.gov/mep
NIST MEP Blog: http://nistmep.blogs.govdelivery.com
MEP – A Federal Program Focused on Manufacturing
• MEP provides manufacturers with services and access
to public and private resources that enhance growth,
improve productivity, and expand capacity.
• MEP works with manufacturers ready to invest in their
future, to make improvements in the short term, and
position themselves to be stronger long-term competitors
both domestically and internationally.
• 60 MEP Centers with over 400 field locations
– System wide, Non-Federal staff is over 1,300
– Contracting with over 2,100 third party service providers
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The MEP Program in Short . . .
 Program started in 1988, with at least one center in all 50 states by 1996
 Objective – enhance the productivity & technological performance of U.S.
manufacturers . . . particularly small and medium sized manufacturers
(SMMs)
 Focused Mission – driven by manufacturers’ needs & opportunities
 Partnership Model – Federal/State/Industry
 Primary Asset – national network with direct access to SMMs
 Network of public-private partnerships – nationally and locally
 MEP System budget ~ $300M
- 1/3 Federal, 2/3 State and Industry (fees for services)
 Emphasis on performance – program and center – measured based upon
impact of center services on client firms.
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Outcomes
Manufacturers completing projects with MEP report:
• 18,069 jobs created in one year and 43,070 jobs retained
preventing the unemployment rolls from increasing and providing
value-added new products to new markets
• $2.5 Billion in new investments – equipment, information
systems, and workforce skills
• $2.5 Billion in increased sales – new sales opportunities realized
• For every one dollar of federal investment, MEP generates nearly $20 in
new sales growth and $20 in new client investment. This translates into
$2.5 billion in new sales annually.
• For every $2,100 of federal investment, MEP creates or retains one
manufacturing job.
Data Source: FY2011 Client Impacts Resulting from MEP Services (7,637 surveyed, 6,047 completed)
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MEP Centers Across the U.S.
800.MEP.4MFG
www.mep.nist.gov
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Partnering to Drive a National Program
> 306,000 Small& Medium Sized
Manufacturers - SMMs
• Customers
Over 2,100 Affiliated
Services Providers
Over 1,300 Center
Staff
400 Service
Locations
60 MEP
Centers
NIST
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• Integration, Knowledge Sharing, &
Evaluation
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What MEP Does
 MEP Center areas of common strength
-
Engineering Services for products and processes
Growth Services – new or expanded market opportunities
Market Diversification
Sustainability
Workforce Development
Lean Manufacturing
Quality Systems
 Reach over 31,300 manufacturing firms and complete over 7,600
projects per year*
*Based on FY2012 MEP Center reported performance data.
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MEP
N EXT
G ENERATION
S TRATEGY
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What we all know…
Manufacturing has and continues to change!
 Globalization is here to stay and U.S. manufacturing firms are
adapting to increasing competition.
 Supply Chains are becoming more global, more exclusive, and
more competitive.
 Innovation (product, process, service & business model) is critical
for survival.
 Technology advances will be incremental and disruptive.
Unfortunately, technology adoption rates at smaller firms still lag
those of larger ones.
 Sustainability is an increasingly powerful business driver for
industry. The triple bottom-line approach to economic,
environmental, and societal balance is defining many corporate
strategies.
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MEP Program Evolution
Build a System
Optimize
Performance and
Accountability
1988-1999
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Deliver Higher
Value-Added
Services
Focus on
Strategic
Management
Develop and
Deploy
Technology
Increase
Economic
Impact
Deliver High Value
Developing
Leaders
Foster Innovation
Technology Based
Economic
Development
2009
2011
2000
2006
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Challenges Facing MEP Clients
As you look forward
over the next 3 years,
what do you see as
your company’s three
most important
strategic challenges?
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Innovation Pays off For Firms and Employees
Innovation, new technology
8.5%
High Quality, 56.1%
Adapting products to
customer needs, 12.7%
Quick Delivery, 12.7%
Low price, 17.1%
Source: Georgia Tech University, “Innovation in Manufacturing: Needs, Practices, and Performance in Georgia 2012-2014”
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Next Generation MEP Strategy
• Increasing manufacturers’ capacity for innovation resulting in
profitable sales growth is the overarching strategy for the MEP.
• The approach is to provide a framework for manufacturers that:
- Reduces bottom line expenses through lean, quality, & other programs targeting
plant efficiencies – which frees up capacity for business growth.
- Adds to top line sales through business growth services focused on the
development of new sales, new markets, and new products.
• Next Generation Strategies (NGS) –
5 key inter-related areas:
• Continuous Improvement
• Technology Acceleration
• Supply Chain
• Sustainability
• Workforce
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I NNOVATION
S ERVICES
Providing a reliable system that
guides companies through the
creation of new ideas, discovery
of market opportunities, and the
tools to drive the ideas into
implementation
N EXT G ENERATION S TRATEGY
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MEP’s System for Innovation
Increases
Speed
Define
Discover
Develop
Plan-Do-Study-Act
Clarity on
Make it REAL
Raw Concept Cycles on Key
Deliver
Go to Market
DEATH Threats
Developed in Partnership with Eureka! Ranch, Newtown, OH
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Decreases
Risk
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Tools and Services Supporting Innovation
Define
Discover
Examples of MEP System Tools
• Innovation Engineering
• Jump Start
• Technology Driven Market
Intelligence
• National Innovation
Marketplace
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Develop
Deliver
Examples of MEP System Tools
• LEAN Product Development
• Tech Scouting
• Patent Acceleration
• ExporTech
• Sustainability
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T ECHNOLOGY
A CCELERATION
Systematically
identifying, and
capitalizing on,
opportunities to leverage
technology into the
processes, products,
and services of
manufacturers
N EXT G ENERATION S TRATEGY
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MEP Approach to Technology Acceleration
Technology based
growth &
competitiveness needs
• Accelerate technology deployment by
connecting needs of US manufacturers to
technology sources
• Translate new technologies into real-world
applications by:
 Connecting manufacturers with solutions
 Providing commercialization assistance to
manufacturers –
• Manufacturing strategy, product
development, IP management, financing,
manufacturing scale-up
 Leveraging 3rd party partners
Technologies and Business Opportunities
available from the nation’s research laboratories
(universities, Federal labs, private companies)
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• Test and develop new tools and approaches:
 National Innovation Marketplace
 Technology Scouting, Supplier Scouting, SBIR
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Technology Acceleration Framework
Markets
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Influencing Manufacturers’ Growth Strategies
Markets
Partners
Tools and Services
• Continuous Improvement • SMARTalent
• Innovation Engineering
• IP Assessment
• E3
• National Innovation Marketplace
• Tech Scouting
• Supplier Scouting - Buy American
• ExporTech
• Innovation Black Belts
• Market Diversification
• Sales Support
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•
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•
•
•
•
•
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•
•
Trade Assoc.
OEMs
DOE
DOD
DOL
DOT
EDA
EPA
ITA – USEAC
SBA
USPTO
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Connecting to Technology Developers
Tools and Services
Partners
• Technology Translation
• Universities
• National Innovation Marketplace
• SBIR
• Technology Scouting
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• Technology
Intermediaries
• Federal Labs
• Innovation
• USPTO
Organizations
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Bridging
the Gap
Tools and Services
Partners
• Technology Scouting
• Lean Product Development
• Technology-Driven Market
Intelligence - TDMI
• National Innovation Marketplace
• Prototyping Technology
• Access to Finance
• MTACs (proposed)
•
•
•
•
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Universities
Federal Labs
Prototyping Firms
Technology Intermediaries
• Innovation Organizations
• Financial Organizations
• NNMI (initially NAMI)
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S UPPLY
C HAIN
Helping manufacturers
strategically understand,
maintain, and expand
their positions in supply
chains
N EXT G ENERATION S TRATEGY
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Supply Chain Framework
Future of Markets
Future of
Companies
Collaboration
among companies
Working with
companies
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• Government and Partner
Relationships
• Supply Chain Strategy
•
•
•
•
•
•
•
•
Supplier Scouting
MBE
GSN
Supplier Development
Operational Excellence
New Markets
New Customers
New Sales
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ExporTech
ExporTech is a “how to” service to help companies expand into global markets by developing a
proactive international growth plan customized for their business, moving the company into
actual, profitable export sales.
ExporTech helps companies enter or expand in global markets. The program
assists participating companies to:
• Develop a vetted international growth plan
• Obtain and apply expert knowledge specific to their needs
• Reduce risks and increase chance of success
ExporTech is a collaborative effort between Commerce’s NIST MEP, the U.S. Export Assistance Centers, and District
Export Councils, the SBA’s Small Business Development Centers, and State-based international trade programs.
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Supplier Scouting
Pilot Projects
• Defense Logistics Agency (DLA), Land & Maritime:
Helping DLA find manufacturers capable of producing hardto-source National Stock Number (NSN) parts by leveraging
the knowledge and relationships of our national network.
• BAE Systems, Inc.: Working with BAE Systems and Army
ManTech to assess and develop capabilities of military
suppliers to operate in a Model-Based Enterprise (MBE)
environment as a critical step in DOD’s implementation of
MBE throughout its supply chain.
• Department of Veterans Affairs / NAVAIR: Developing
procedures to find and assist veteran-owned and service
disabled-veteran-owned U.S. manufacturers capable of
supplying material to meet NAVAIR demands.
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Supplier Scouting
Buy American
• Collaboration of federal agencies and MEP to scout for
U.S. manufacturing capabilities to support the Buy
American Provisions of federal funding programs,
including the American Reinvestment and Recovery
Act (ARRA).
• MEP’s supplier scouting program focuses on
finding business opportunities for small manufacturers
by matching their capabilities with the supply chain
needs of America’s original equipment manufacturers
(OEMs)
• The Department of Energy (DOE), the Department of
Transportation (DOT) and National Institute of
Standards and Technology (NIST) are currently
involved.
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DOE Pilot Scouting Progress
116 Total Items Scouted
56 Items Match Found
Buy American opportunities have totaled over $28M
• MEP has found interested companies to match capabilities needed for nearly $20M of these
opportunities
• Avg $ amount for each opportunity that MEP has found a company with capabilities is $335K
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Next Generation Rail Supply Chain
• The U.S. Department of Transportation (DOT) and U.S. Department of
Commerce (DOC) recently formed a partnership to leverage agency
capabilities to ensure the development of a domestic supply base to
support intermodal transportation in the United States
• The Next Generation Rail Supply Chain Connectivity brings large
carbuilders and OEMs together with smaller, capable and interested U.S.
manufacturers to facilitate reaching the goal of 100% domestic content in
railcars that will be funded by state and federal dollars.
• Provides an opportunity for U.S. manufacturers to grow and diversify into
entering the rail industry.
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Edison Nation
• An initiative to bolster U.S. manufacturing by providing to U.S.
small and medium manufacturers competitive opportunities that
would otherwise go offshore
• Edison Nation hosted Made in America themed searches for new
product ideas
• Innovators were invited to submit ideas to eight large retailers
• Retailers will select their top ideas and seek U.S. based
manufacturers — through the NIST MEP network — to bid to make
the products
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Diversification: Innovating into New Market
With an onsite assessment, MMTC helped management set an operational transition
plan. Omega Plastics, located in Southeast Michigan, over a period of 5 years executed
that plan and refocused their customer base from 90% automotive to clients in
medical (65%), consumer packaging (10-12%), automotive (12-15%), and security and
safety products (8%). Other results include a 93% increase in value add per FTE, $160k
investment in a clean room and more than 25 new customers in new markets.
Clean Room and Medical Devices
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Support U.S. Manufacturing Suppliers
• Keep manufacturing production in the U.S. – “Home-shoring”
– Improve productivity and innovate to increase competitiveness
• Bring manufacturing production back to the U.S. – “Re-shoring”
– Collaborate with the “Reshoring Initiative”
– Total Cost of Ownership – cost and risk assessment to inform business
decision making
• Attract foreign direct investment (FDI) in the U.S. – “In-shoring”
–
–
–
–
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New manufacturing facilities
Create opportunities for suppliers
SelectUSA
Make It In America Challenge
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MEP and Total Cost of Ownership
• Pilot to develop supply chain optimization services for MEP centers to deliver to
manufacturing clients
• Pilot conducted by MEP centers from Illinois, Virginia, South Carolina, California
and Texas
• Improve supply chain performance by quantifying supply chain requirements and
then focusing on reducing/eliminating bottlenecks in the process through lean,
technology scouting, product development and process improvement services
• New tools include: Risk Management Workshops, Total Cost of Ownership
Workshops, and a Total Cost of Ownership (TCO) Calculator
• The TCO Calculator considers costs such as: product information, vendor
information, financial data, transportation, oversight, expediting, inventory and
warehousing, risk management, transportation greenhouse gas emissions, etc.
• Anticipate rollout of these services to the MEP centers late in 2013
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SelectUSA
•
Created by the Executive Order of the President of the United States in June 2011
•
Mission is to facilitate business investment – from both domestic and foreign firms – in the
United States
•
Housed in the U.S. Department of Commerce, International Trade Administration - leverages
staff in 72 markets around the world
•
What we do:
1.
2.
3.
4.
5.
•
Facilitate Business Inquiries
Act as Ombudsman and Advocate
Connect Investors with State/Local EDOs and Provide Guidance to EDOs
Conduct Investor Outreach and Educate Investors
Lead and Coordinate an Interagency Working Group
Contact info: www.SelectUSA.gov or (202) 482-6800
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Assessing Manufacturing Costs & Risks
http://acetool.commerce.gov
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Make It In America Challenge
• An initiative of three Federal Agencies to:
– encourage re-shoring of productive activity by U.S. firms
– foster increased foreign direct investment (FDI);
– encourage foreign and domestic companies to keep or expand their
businesses and jobs in the U.S.; and
– train local workers to meet the needs of those businesses.
• Four partnering agencies – EDA, MEP, DOL, Delta Regional
Authority
• Target March for release of Federal Funding Opportunity
• 15 awards anticipated, up to $40 million available total
• MEP Activities: Scout suppliers, determining their capabilities and
capacity, defining gaps; Deliver technical assistance to address gaps;
Collect impact and performance metrics.
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S USTAINABILITY
Helping manufacturers
gain a competitive edge,
maintain profitability and
job creating growth
while increasing energy
efficiency and reducing
environmental impacts
N EXT G ENERATION S TRATEGY
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MEP Partnering to Support Manufacturing through Sustainability
GSN: Green Suppliers Network
E3: Economy, Energy, and Environment
Benefits for Manufacturers & Communities
Cost Savings
 Increased process efficiencies and reduced waste
 Profitable sustainability practices
What are GSN and E3?
Innovative models for collaboration among manufacturers,
utilities, local government, and federal resources to enhance
sustainability and competitiveness in local and regional
economies as well as supply chains and to spur job growth and
innovation.
Partners
The joint collaboration has expanded to include five U.S. federal
agencies: DOC, SBA, DOL, DOE, and EPA. These federal
partners work directly with local utilities, local government, and
small- and medium-sized manufacturers.
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Increased Competitiveness
 State-of-the-art sustainable business practices
 Technical support to drive entry into new markets
 Job creation and retention
Access to Technical and Financial Resources
 Additional funding through federal and state programs
 Enhanced skills and capabilities for workers
Economic Growth
 Improved competitiveness of existing manufacturers
 Enhanced ability to attract new business
 Increased manufacturing jobs or job retention
 Trained workforce with skills for a sustainable economy
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W ORKFORCE
Helping manufacturers
engineer innovation and
business growth
utilizing a strategic
focus on workforce
planning and
implementation
N EXT G ENERATION S TRATEGY
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SMARTalent Technology
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A Fact & Challenges in Serving SMMs
 SMMs want and will pay for “services” and “solutions”
that lead to profitable growth
How do we deal with –
• Integration across diverse business models of partners
to create a seamless, efficient system
• Geography
• Capacity – not 10’s, but 100’s or 1000’s of manufacturers
• Scale – incremental, not necessarily disruptive
• Time frame to transition and implement
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