AAMA/AIAG QUALITY CONFERENCE Presented by Douglas J. Jensen, Ed.D. President - Alabama Technology Network (ATN) January 28, 2016
TODAY’S PRESENTATION WILL FOCUS ON: • Who/What is ATN? • What is MEP • MEP Impact to the Automotive Industry • Questions?
ABOUT ATN WORKING WITH EXISTING BUSINESS & INDUSTRY Applied Engineering and Technology Implementation Research Career Training
ISO 9001 Certified ATN Mission To provide Industry and ATN Vision Business the tools, training, and ATN will be the resources to excel driving force that makes existing Alabama companies the most profitable and productive in the world
ATN’s MANUFACTURING EXTENSION PARTNERSHIP HISTORY UA 501(c)3 Division of Centers of ACCS Non-Profit Excellence 2004 1987 1995 UA Centers of Excellence MEP Centers MEP Centers 5 Centers – Local Partners 9 MEP Centers 15 MEP Centers
ATN SERVICE SITES Jasper Alexander City Bevill State Community Central Alabama Community College College Montgomery/Selma Birmingham Wallace Community College Jefferson State Community Selma College Satellite at Trenholm State Satellite in Lawson State Satellite at Shelton State Brewton Muscle Shoals Jefferson Davis Community Northwest-Shoals College Community College Satellite in Mobile Rainsville Eufaula/Dothan Northeast Alabama Wallace Community College Community College Satellite at Enterprise State Community College Thomasville Alabama Southern Gadsden Community College Gadsden State Community College Hanceville Wallace State Community College
WE ARE ATN
THE MEP CONNECTION 5 th Alabama Affiliate National Ranking Manufacturing Extension Consistently ranked in the top 5 Partnership among MEP centers
Program Started in 1988 National Network Partnership Model At least one center in all 50 60 Centers with over 550 Field Locations. Federal, State System wide, Non-Federal Staff is over states by 1996 and Industry 1,200. Contracting over 3,200 third party service providers. Evolving Role Program continues to evolve in Global Competitiveness MEP System Budget Program was created by the order to support manufacturers $130 Million Federal Budget 1988 Omnibus Trade And during changing economic with Cost Share Competitive Act situations. Requirements for Centers MEP PROGRAM IN SHORT
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 *Based on FY2015 MEP Center reported performance data . MEP DOES NATIONALLY
MEP CLIENT NETWORK REPORTED CLIENT IMPACTS NATIONALLY 19,466 $5.7 $2.3 49,011 $1.2 $3.1 Billion Billion Billion Billion
MEP NATIONAL STRATEGIC GOALS Enhance the competitiveness of Support national, state, and U.S. manufacturers, with particular regional manufacturing focus on small and medium-sized eco-systems and partnerships. companies. Serve as a voice to and voice for Develop MEP’s capabilities as manufacturers to engage policy a high-performance system makers, stakeholders, and clients. and learning organization.
MEP PROGRAM INITIATIVES Growth and Innovation Supply Chain Sustainability Technology Workforce Make it in America Acceleration MEP’s Program Initiatives are aimed to help manufacturers identify opportunities that will accelerate and strengthen their growth and competitiveness in the global marketplace
PARTNERSHIPS MEP Centers serve as an invaluable partner to states by: Educating Providing Outreach Connecting the Gap Supporting local and regional to manufacturers by between technology workforce partners on small and connecting them to other developers / R&D development medium sized programs and services organizations and programs. manufacturer needs and offered by partner manufacturers: finding firms drivers of behavior. organizations. that are interested in a particular technology, as well as informing tech developers of manufacturer’s technology needs
A SAMPLE OF MEP SERVICES Lean Environmental Health Industrial Manufacturing & Safety Maintenance • Waste Elimination • OSHA Walk-Throughs, • PLC’s, Drives, DCS • 5S, Value Stream Ergonomics, ISO 14000 • Hydraulics, Pneumatics, Pumps, Mapping, Pull Systems • OSHA 10 & 30 Hr., PIT • Predictive/Preventive • Quick Changeover, • HAZWOPER, HAZMAT, Maintenance Visual Factory Confined Space Entry • Certified Maintenance Technician • Lean Certificate Series Community/Economic Innovation & Quality Systems & Development Sustainability Engineering • Economic Development Initiatives • ISO 9001:2015, ISO • Supply Chain Management • Technological Support to Schools 14001:2015 • Innovation Engineering • Stakeholder Support • ISO/TS 16949, MSA, • Industrial Leadership • BEST Robotics APQP, FMEA, SPC • Team Building • Review and Implementation • Sustainability
TECHNOLOGY ACCELERATION • 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. Technology Scouting and SBIR Assistance NNMI Institutes for Technology and Manufacturing Innovation Driven Market Technology (IMIs) Intelligence Collaboratives
SUPPLIER SCOUTING FOR BUY AMERICA ASSISTANCE • Connects capabilities, capacities, business interests of U.S. manufacturers with needs and business opportunities of >12 Participating Government various manufacturing supply chains. Agencies • Connects government agencies that have Buy America(n) provision requirements, with capable and interested U.S. manufacturers. >200 Items Scouted • Supplier Scouting has identified and connected domestic manufacturers with business opportunities for supply chains >60 BUY AMERICA(N) in following industry sectors: MATCHES energy products of products that passenger rail cars and rail locomotive previously were awarded railroad track and physical infrastructure waivers, to be defense weapon systems and defense support manufactured in the U.S. equipment Highway, Rail, and Water transportation systems laboratory instruments consumer products power utilities
MEP Centers Supply Chain efforts focus on helping SUPPLY CHAIN 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 Supply Chain Supplier Supply Chain Optimization Technology Sustainability Improvement Acceleration
CLIENT SATISFACTION MEP’s INDEPENDENT PROCESS
MEP METRICS 2015 Client Survey Data Increased Cost Jobs Unique & Savings Created Clients Retained to Retained Served Sales Mfgs. $7 $1 7,275 68,477 Billion Billion
Southeastern Automotive Industry
FUTURE IMPACTS MANUFACTURING FACING
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 .”
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 Increase in or $4.6M in lost Increase in cycle time overtime earnings annually down time $1M annual $45M less revenue generating OT cost 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
Questions?
Stay Connected Search ATN or Alabama Technology Network 1-877-428-6457 toll free Get the latest at: WWW.ATN.ORG
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