dave stieren - association for manufacturing technology stieren presentation.pdf · - invest in...

Dave Stieren

ManagerTechnology Acceleration

Manufacturing Extension Partnership

National Institute of Standards

and Technology

U.S. Department of Commerce

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P

NIST MEP

The National Institute of Standards and Technology Manufacturing Extension Partnership

Helping U.S. Manufacturers Grow and Compete

AMT Annual Meeting Miami, FL October 22, 2010

David C. Stieren Manager, Technology Acceleration 301-975-3197 [email protected]

Manufacturing Extension Partnership (MEP) National Institute of Standards and Technology (NIST) U.S. Department of Commerce

www.mep.nist.gov NIST MEP


NIST MEP

TODAY’S PRESENTATION

NIST MEP

MEP Introduction, Operational Info- Who MEP is, What MEP does, How MEP operates

MEP Strategy for Assisting U.S. Manufacturers- 5 Components, set within Framework of Profitable Growth

SUMMARY

3AMT Annual Meeting – October 2010


NIST MEP

The National Institute of Standards and Technology (NIST)

Mission: To promote U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technologyin ways that enhance economic security and

improve our quality of life

Major Assets, Products, Services

~ 2800 employees, ~2600 associates and facilities users, ~1600 field staff in partner organizations

Unique User Facilities, incl. Center for Neutron Research, Center for Nanoscale Science & Technology

~100 different types of Standard Reference Data, ~1,300 Standard

Reference Materials

~18,000 calibration tests, ~2,200 publications, ~800 accreditations per year

Cou

rtesy

Ste

uben

4NIST MEPAMT Annual Meeting – October 2010


NIST MEP

MEP

provides companies with services and access to public and private resources that enhance growth, improve productivity, and expand capacity.MEP works with companies that are ready to:

- invest in their future- make improvements in the short term- position themselves to be stronger long-term competitors –

domestically and internationally.

MEP’s emphasis on performance measured in terms of the economic impact realized by client firms.

MEP Network: 60 MEP Centers with 400 field locations- Over 1,600 MEP system staff (non-Federal)- Contracting with over 2,300 third party service providers

5NIST MEP

The Manufacturing Extension Partnership (MEP)

AMT Annual Meeting – October 2010


DMC 2009 NIST MEP 6

MEP Office Locations

60 MEP Centers400 Service Locations

1600 Field Staff

NIST MEPAMT Annual Meeting – October 2010

www.mep.nist.gov– or –

800-MEP-4MFG

http://www.mep.nist.gov/


NIST MEP February 2010 NIST MEP 7

Partnering to Drive a National Program

Serv

ice

Deliv

ery




NIST MEP Network Affiliates: Local Brands United by NIST MEP


http://www.nystar.state.ny.us/default.htm

http://www.mtmanufacturingcenter.com/


NIST MEP

MEP Center Operating Structure Diversity

Utilize existing local resources to provide manufacturing extension services –

rely heavily on partnerships

Staff are employees of the Center and its partners –

not Federal Govt.

Geography: urban → rural –

MEP assistance for U.S. mfrs within a 2 hour drive

Organization Type: 501 c(3), university, state government

Organizational Structure:- Single location- Principal organization with

independent partner organizations- Central office with regional offices- Headquarters operation with

multiple field offices

AMT Annual Meeting – October 2010 NIST MEP 9


NIST MEP

How MEP Centers Work With Manufacturers Initial contact –

group sessions, referral

Assessment –

informal walk-through, detailed company analysis ID potential issues, define proposed project and approach for solving itNegotiate with company and sign project contract with fee paid to centerProject execution –

Center staff, partner organization, and/or third party

consultantsAfter completion, project follow-up by Center to assure customer

satisfaction and explore further project opportunities_____________________________

Project impact data collected by contractor for NIST approximately 6 months after project completion



DMC 2009 NIST MEP

Focus on meeting manufacturer’s short term needs –

in

context of overall company strategy

MEP Center areas of common strength

-

Engineering Services for products and processes-

Growth Services –

new or expanded market opportunities-

Lean Manufacturing, Quality Systems-

Sustainability-

Workforce Development

Reach nearly 33,000 manufacturing firms and complete over 10,000 projects per year*

*Based on FY2009 MEP Center reported performance data.

What MEP Does



NIST MEP

Service Characteristics Service Characteristics By Type of Assistance By Type of Assistance (FY 2009)(FY 2009)



NIST MEP

Service Characteristics Top Industries Served (FY 2009)



DMC 2009 NIST MEP

Client Impacts Resulting from MEP Services*

Increased/Retained Sales

$9.1 Billion- New Sales $3.6 Billion- Retained Sales $5.5 Billion

New Client Investment

$1.7 Billion

Cost Savings

$1.4 Billion

Jobs Created/Retained

52,948- Created 13,949- Retained 38,999

MEP has completed over 400,000 customer engagements since 1989 – including 32,926 in 2009, focusing on technical assistance projects, training programs, networking events, long-term strategic support

* Independent follow-up of MEP clients with projects completed in FY 2008. Of the 8,921 clients selected to be surveyed, 7,648 MEP completed the survey in FY2009. Measures are a conservative snapshot of benefits, and recurring or cumulative benefits may be larger.



NIST MEP


NIST MEP



SUMMARY



DMC 2009 NIST MEP

MEP Program EvolutionMEP Program Evolution

1998 2002



DMC 2009 NIST MEP

MEP Program Evolution MEP Program Evolution –– The Next The Next GenerationGeneration

2006 2009

Build on MEP Foundation = National Coverage + Trusted Partnerships + Proven Solutions



NIST MEP

Current Landscape for U.S. Manufacturers Client Challenges As you look forward over the next 3 years, what

do you see as your company’s three most important strategic challenges?

Data from MEP Clients responding to a Client Impact Survey conducted in April/May 2009



NIST MEP

MEP Strategy

Increasing manufacturers’

profitable 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/or new products.

There are 5 key areas of the strategy:

-Continuous Improvement-Technology Acceleration-Supplier Development-Sustainability-Workforce



NIST MEP

GROWTH SERVICES

Providing reliable and rigorous approaches to

guide companies through the creation of new ideas,

discovery of market opportunities, and the tools

to drive the ideas into development




Growth ServicesProviding manufacturers with choices for growth is the basis for our approach to innovation. MEP helps manufacturers achieve profitable growth using proven, structured processes

Pillars of Growth:- New Sales - New Markets - New Products

Sample MEP Growth Services, Tools- Enterprise Transformation- Eureka! Winning Ways- Technology Scouting- National Innovation Marketplace- Supplier Scouting- Market Diversification- ExporTech- IP Management- Guidance on Approaches to Financing/Access to Capital



NIST MEP 22NIST MEP

FOCUS: Systematically identify, and capitalize on,

opportunities to leverage technology into the processes,

products, and services of manufacturers

TECHNOLOGY ACCELERATION



NIST MEP 23NIST MEP

MEP Approach to Technology Acceleration

Technology based growth &

competitiveness needs

Technologies and Business Opportunities available from the nation’s research

laboratories (universities, Federal labs, private)

• 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• product development, manufacturing

strategy, manufacturing scale-up, IP mgt, financing

Leveraging 3rd

party partners

• Test and Support new tools and manufacturer assistance mechanisms: National Innovation Marketplace Technology Scouting, Supplier Scouting, SBIR



NIST MEP NIST MEP 24

Financing Growth OpportunitiesMEP Focus: To systematically increase awareness, access to range of financing options available to small manufacturers pursuing innovation and growth –

oriented strategies.

Manufacturers planning to grow –

whether by development of new products, markets, or sales –

need clear strategies for identifying and securing necessary capital resources Every growth strategy decision is also an investment decision.

• Internal Cash Management Practices• Debt Financing • Federal Loan Programs for Small Business• Federal Loan Programs –

International Trade• State Grant Programs• Private Sector Operated Loan Programs• State and Local Financing Programs• Specialized Private Sector Financing• Equity Financing • Federal and State Tax Programs• Federal Grant Programs

Access from the “Manufacturer’s Toolbox”www.manufacturing.gov

Quick Reference Guide to Growth Financing

Available to summarizeand serve as discussion starter on different options available to SME’s.



NIST MEP

FOCUS: Help

manufacturers strategically

understand, maintain, and

expand their positions in

supply chains

25NIST MEP

Supplier Development

Data shows that 60-80% of U.S. manufacturers operate as parts of supply chains – rather than developing and producing products for final retail customers.

Primes / OEMs / All companies cannot compete without constantly improving supply chains- Supplier Development- Finding new suppliers- Finding new technology- New Sources

Small and medium-sized manufacturers cannot stay in business without sales to Primes / OEMs / Customers- Most small manufacturers sell b-2-b- Delighting Current Customers- Finding New CustomersAMT Annual Meeting – October 2010


DMC 2009 NIST MEP

Market Diversification for Manufacturers

Medical Prosthetics

With an assessment and defined scope, MEP matches market trends and data with a company’s specific Process Capabilities to ID Market Diversification opportunities.

In the example above, the Michigan Manufacturing Technology Center (MI MEP) used this process to help a particular company realize they could use the same equipment and same manufacturing process to move from Automotive to Medical Appliances.

NIST MEP 26AMT Annual Meeting – October 2010


Understanding Opportunities for Business Growth

MarketsMarkets ExistingExisting NewNew

ExistingExisting

NewNew

Prod

ucts

Prod

ucts

Moderate RiskSmall Investment Cost

Limited bus. cycle benefitsModerate growth potential

Highest RiskHighest Investment Cost

Highest bus. cycle benefitsGreatest growth potential

MARKET DEVELOPMENT

DIVERSIFICATI ON

27NIST MEP

Lowest RiskLeast Investment Cost

No business cycle benefitsLimited growth potential

MARKET PENETRATION Moderate Risk

Moderate Investment Cost

Some business cycle benefitsModerate growth potential

PRODUCT DEVELOPMENT



NIST MEP

Diversifying into Export Markets via ExporTechHelping Companies Enter and Expand into Global Markets

Case Study: Wilco Machine & Fabrication, Marlow, Oklahoma Manufacturer of fabricated and machined equipment, products, and

tools for the energy industry.Results:

Visited the Middle East to establish relationships

Negotiations for a joint venture in Brazil

2008 exports accounted for less than 8% of total revenue

Halfway through 2009, exports jumped to 51%

Predicting that exports will be 60% of total revenue by end of 2009

• 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 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


http://www.commerce.gov/

http://www.sba.gov/


NIST MEPNIST MEP 29

MEP Supplier Scouting

Bringing business opportunities to small manufacturers with specific capabilities, capacities -

Understand supply chain needs of governmentagencies, large corporations/OEMs

-

Deliver capable suppliers-

MEP currently working with:-

DOD Defense Logistics Agency-

U.S. Army-

U.S. Dept of Veterans Affairs, Naval Air Systems Command-

DOE Office of Energy Efficiency & Renewable Energy -

alternative energy/wind power OEMs, nuclear power OEMs-

U.S. Dept of Transportation

Leveraging MEP knowledge of local manufacturer capabilities on national basis-

(Pre)Qualify supplier manufacturing/technology capabilities and capacity-

Provide MEP assistance to suppliers as needed



NIST MEP

MEP Supplier Scouting for DOE BUY AMERICAN

NIST MEP helping DOE do due diligence in processing BUY AMERICAN waiver requests by scouting for U.S. manufacturers with specific capabilities, capacity, and interest

to produce specific manufactured items.

DOE EERE, NIST MEP jointly developed format for info being submitted by ARRA grantees requesting BUY AMERICAN waivers -

Based upon Opportunity Synopsis developed and being used for other MEP Supplier Scouting pilots, approved by OMB for official waiver request submissions

Helping grantees spend ARRA funding quickly and expediently

Fulfilling the purpose and potential of the Buy American provision-

Directing funding towards American jobs-

Driving investment into the domestic manufacturing sector



NIST MEP 31NIST MEP

TECHNOLOGY ACCELERATION+

SUPPLIER DEVELOPMENT

=TECHNOLOGYTECHNOLOGY--BASED BASED

SUPPLIER DEVELOPMENTSUPPLIER DEVELOPMENT

FOCUS: understanding supply chain positioning ( for current / new market spaces) and capitalizing on opportunities where technology can be leveraged to differentiate companies from competition

Example areas of emphasis:• Integration of new processing techniques /

technologies (tooling, capital equipment, metrology/sensors) into factory systems

• Implementation of automation technologies / approaches into operations

• Implementation of advanced engineering practices / integration of engineering with production & other manufacturing execution functions

Working with US DOD to implement model- based enterprise (MBE) approaches throughout supply base

Including access to high-performance computing/modeling and simulation resources



NIST MEP

MBE is the future of DOD supply chain ops MEP playing key role in MBE Supplier

Assessment and Development - DOD supply base is ready to implement MBE at a basic level

Significant work is occurring and progress is being made to develop the technical infrastructure for MBE

MEP working with DOD to develop the processes for broad MBE implementation throughout supply base.

- MBE Capabilities Assessment and Certification Program- New MEP-developed and operated MBE Website contains the relevant info,

resources suppliers will need to implement MBE.www.model-based-enterprise.org

DOD and MBEMEP Helping the Supply Base Transition



NIST MEP

SUSTAINABILIT Y

FOCUS: Helping manufacturers gain a

competitive edge, maintain profitability and job creating

growth while increasing energy efficiency and

reducing environmental impacts



NIST MEP

Sustainability

Merging environmental, societal, and economic concerns

Requires continual improvement in all 3 areas to secure the future of companies, nations, and the environment

MEP’s focus

Sustainability is a key business growth strategy to improve US manufacturing competitiveness

Companies that commit to implementing eco-friendly changes find themselves with lower operating costs, access to new markets, and a more profitable enterprise

“Meeting the needs of the present without compromising the

ability of future generations to meet

their needs”- the Bruntland

Commission, 1983



NIST MEP

MEP Sustainability Current Efforts

Environmental Protection Agency and MEP Green Suppliers NetworkDepartment of Energy, Industrial Assessment CentersEPA/DOE/MEP/Society of Manufacturing Engineers

collaborate to introduce an Environmental and Energy Efficiency (E3) Certification ProgramEnergy and Sustainability Projects with manufacturersGreen Jobs -

Implementing green technologies requires

a trained workforce ready to meet manufacturers’

new production demands.



NIST MEP

WORKFORCEHelping manufacturers

develop a strong, engaged, and skilled

workforce that spans all levels of the organization

necessary for business growth



NIST MEP

Approach

Leverage existing Federal and State programs with a focus on rapid response to individual manufacturers needs.

Develop diagnostic tools and services to assist companies in avoiding layoffs and provide re-training opportunities for employees.

Develop the tools and services necessary to develop a manufacturing workforce pipeline by working with partners to engage students early in their education to provide opportunities and career paths into manufacturing.



NIST MEPNIST MEP

Layoff Aversion EMT Meets the Fitness Trainer

Preventivevs.

Emergenc y

Care

Utilize early warning networks, including state and local partners, to identify and stabilize “at-risk” companies before they reach critical condition

Work with companies to reduce operating costs and, once the company is in stable condition, identify business growth opportunities

Prevent layoffs – start by saving existing jobs and then begin creating new, secure positions within the company.

Layoff Aversion programs already exist in California, Missouri, Michigan, New York, Pennsylvania, Oklahoma

Expand Labor Workforce Investment Act - Commerce MEPcollaboration

AMT Annual Meeting – October 2010 38


NIST MEP


NIST MEP



SUMMARY



NIST MEP

2010 Competitive Awards Made by MEP

NIST MEP received a federal budget increase in FY10 that enabled

conduct of a competition focused on MEP’s Framework for Assisting U.S. Manufacturers

From NIST Press Release issued October 5, 2010:http://www.nist.gov/mep/upload/100410-MEP-Competition-press-release-FINAL.pdf

“NIST Manufacturing Extension Partnership Awards $9.1 Million for 22 Projects to Enhance U.S. Manufacturers’ Global Competitiveness GAITHERSBURG, Md.—(October 5, 2010)

The National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership (MEP) today announced $9.1 million in cooperative agreements for 22 projects designed to enhance the productivity, technological performance and global competitiveness of U.S. manufacturers.

Granted through competitive processes to nonprofit organizations, these projects will be implemented through MEP’s national system of over 400 centers, field offices and partners. The funding will help encourage the creation and adoption of improved technologies and provide resources to develop new products that respond to changing market needs.”



NIST MEP

MEP: What’s In it for You?


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