12/13/2015 Student Punks meet ……… ……….the Industry God -fathers NIGEL SOUTHWAY Owner of NEXUS CONSULTING SERVICE • 40+ years Broad Business and Manufacturing Experience • British Engineering Apprentice …Aerospace/Electronics (1966) • BSc EEE C- Eng. in Engineering/MSc Management…. (Bristol) • Manufacturing Engineer (1972) • MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation 1980,s (1992) • Engineer / Manager / Director / VP Operations / General Manager • Consultant/Change Agent/Educator/Coach for LEAN business improvement • AUTHOR : CYCLE TIME MANAGEMENT … Fast Track to Productivity Improvement • Consulted many organizations in different industry sectors in many countries. • Assisting many Global Sourcing programs and Joint Ventures (2004 Onward) • Society of Manufacturing Engineers …2012/2013 Chair Toronto Chapter • Advocate for the Take Back Manufacturing and Reshoring Forum NEXUS • Sheridan lecturer on Advanced Manufacturing and Sustainable Supply Chains www.nigelsouthway 1
12/13/2015 ? SLIDE-RULE British Engineering Apprenticeship Extinct 2
12/13/2015 NIGEL SOUTHWAY www.nigelsouthway.com • 40+ years Broad Business and Manufacturing Experience • British Engineering Apprentice …Aerospace/Electronics (1966) • BSc EEE C- Eng. in Engineering/MSc Management…. • Manufacturing Engineer (1972) British Aerospace/SPAR British Aerospace Electronics / Space-Systems group Bristol Division England Student Engineering Apprenticeship Indentured and Integrated with industry British Engineering Apprenticeship Embedded Education within Industrial Training program NIGEL SOUTHWAY www.nigelsouthway.com • 40+ years Broad Business and Manufacturing Experience • British Engineering Apprentice …Aerospace/Electronics (1966) • BSc EEE C- Eng. in Engineering/MSc Management…. • Manufacturing Engineer (1972) British Aerospace/SPAR British Aerospace Electronics / Space-Systems group Bristol Division England Student Engineering Apprenticeship Indentured and Integrated with industry British Engineering Apprenticeship Embedded Education within Industrial Training program 3
12/13/2015 CONCORDE SST 002 April 1969 Proto-test platform Mach 2 (1350 mph) 120 Passengers INTELSAT/COMSTAR/ANIK Communication Satellite 4
12/13/2015 Space Shuttle Remote Manipulator System (SRMS) Canada 9 NIGEL SOUTHWAY www.nigelsouthway.com • 40 years Broad Business and Manufacturing Experience • British Engineering Apprentice …Aerospace/Electronics (1966) • BSc EEE C- Eng. in Engineering/MSc Management…. • Manufacturing Engineer (1972) British Aerospace/SPAR • MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation (1980,s) • Engineer / Manager / Director ……….Brampton / Chicago / Nogales Mexico HI Tech Boom …. ABM Secure Networks Modems/Multiplexors 5
12/13/2015 NIGEL SOUTHWAY Owner of NEXUS CONSULTING SERVICE • 40+ years Broad Business and Manufacturing Experience • British Engineering Apprentice …Aerospace/Electronics (1966) • BSc EEE C- Eng. in Engineering/MSc Management…. (Bristol) • Manufacturing Engineer (1972) • MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation 1980,s • Engineer / Manager / Director / VP Operations / General Manager (1992) • Consultant/Change Agent/Educator/Coach for LEAN business improvement • AUTHOR : CYCLE TIME MANAGEMENT … Fast Track to Productivity Improvement Clients in Canada, USA, Asia and Europe. Ever-Ready Battery, BFL, GlaxoSmithKline. Automotive, Aerospace, Avionics, J.M. Schneider Inc, British Airways, Baxter, Procter and Gamble, BTR, Ciba Corning, High-tech and consumer Electronics, Inland Steel, Tectrol, Citibank, Morton Metal-craft, Tiercon, Royal Ford, Pharmaceuticals, Food, Beverage. Inter-City Products, ACS, GE MARCONI, FABCO, Imperial Rubber, Clubcar Consumer Products and Appliances Thompson Pipe & Steel. GTD, Toro ECCO, VERTIGO, John Deere NEXUS A 0 Smith, Steel, Fabrication and Mining Canadian Pools, NOMA, Grote Industries, Telephoto McCoy www.nigelsouthway NBS, Service and Financial Industries. SXA Polaris Royal Canadian Mint, INDUSTRY WEEK 6
12/13/2015 Supported Clients World Wide on LEAN THINKING & Productivity Improvement. • Electronic assembly • Bubblegum and candy factory • Meat processing plant.. • Food additive producer • Metal fabrications • Data-com system provider • HVAC Manufacturing • Computer software developer • Toothpaste manufacturing • Mint (Coins and Medals) • Steel mill processes • Security equipment • Bank check clearing house • Off-road equipment • US army medical Corp • Water pipeline manufacturer • Whiskey distilling • Exhaust System Manufacturing • Dry-cell battery production • Commercial swimming pool manufacturing • Credit card emboss house • Auto dealerships • Electrical products • Medical equipment Design/Manufacturer • Custom Power-Supplies • Oil extraction equipment manufactures • Computer design/manufacture • Nano-tech Battery Manufacturing • Sheet-metal fabricators • Automotive parts supplier • Plastic injection molding • Generic drug manufacturer • Truck Components supplier • Vaccine Development and Manufacturing • Construction equipment • Robotic Medical surgical devices • Oil industry equipment providers • Commercial Heating Equipment • Aerospace equipment providers • Soap factory Canada / USA / Mexico / UK / China / Russia / India / Ukraine NEXUS NAFTA Manufacturing Expansion…To a LCC (Low Cost Country) MEXICO 1996 to 2002 A Maquiladora or Maquila (used interchangeably) is a plant in Mexico that retains a Maquiladora Permit from the Mexican government to import raw materials duty free into Mexico for manufacturing, assembly, repair or other processing. The foreign company must agree to re-export a majority of its production. • Low cost labor: Wages range from 15% to 25% of comparable rates in the U.S. Normal work week is 48 hours. Productivity often exceeds the U.S. rates. (U.S. Bureau of Labor) • Favorable duty/tax treatment : Southbound, the Mexican government allows duty-free imports of all materials and machinery needed for the plant. Northbound, many North American sourced products are now duty free under NAFTA. • 100% Ownership of subsidiary: Leaves total control for all operations in the hands of the parent. There are professional services available to handle such matters as personnel, accounting and import/export management. • Proximity to U.S.: Lower turnaround times compared to other low labor rate countries, lower transportation costs, and the ability for managers or skilled technicians to commute on a daily basis to the Mexican facilities is possible in the border areas. • Access to the Mexican Market: Maquilas may sell part of their previous years export output in Mexico’s 107 Million person consumer market . Also… Free trade with EU and other trade jurisdictions with registered Mexican subsidiary status. And tax compliance 14 7
12/13/2015 GLOBALIZED MANUFACTURING 2004 Onward CHINA MANUFACTURING 8
12/13/2015 CHINA MANUFACTURING Metal and Plastics + Welded Assemblies Components Mixed Volumes Subassemblies Some final assemblies 18 9
12/13/2015 CHINA MANUFACTURING CHINA MANUFACTURING CHINA MANUFACTURING 10
12/13/2015 CANADA MANUFACTURING The future of Manufacturing in Ontario’s economy. 21 CANADA MANUFACTURING A NORTH AMERICAN PROBLEM The future of Manufacturing in Ontario’s economy. 22 11
12/13/2015 Toronto Chapter Society of Manufacturing Engineers Premier source for manufacturing knowledge, education and networking. SME Toronto WWW.SMETORONTO.CA Nigel Southway SME Toronto Secretary/Past Chair 2012/2013 TBM Take Back Manufacturing WWW.SME-TBM.ORG Take Back Manufacturing TBM 25 Technical Associations 3 Trade associations 5 Educational policy makers 7 Media experts 3 Local government reps 5 Industry experts A Forum Dedicated to Restoring our Manufacturing Sectors. www.SME-TBM.org 12
12/13/2015 TBM M 25 Presentations.... TAKE BACK MANUFACTURING Raising the Awareness CMTS Toronto Canada October 2011 SME Annual Conference Cleveland USA June 2012 TBM Many Society and Association events in 2012/13 M 13
12/13/2015 http://www.canadianmanufacturing.com/fabrication/production/taking-back-manufacturing-51066 Professional Engineers Ontario http://sme-tbm.org/app/download/5809147904/PEO+TBM+article.pdf 14
12/13/2015 29 BNN BUSINESS NEWS NETWORK What can Canada learn from German Manufacturing? 30 15
12/13/2015 TBM Take Back Manufacturing WWW.SME-TBM.ORG TBM Take Back Manufacturing TBM Take Back Manufacturing WWW.SME-TBM.ORG TBM …Our Ultimate Goal Government, Education organizations Work together …. Industry leaders ROADMAP……..Recover our future industrial capability …… and therefore our future prosperity. 32 16
12/13/2015 TBM – The 3 Parallel Imperatives Government Industry Educators TBM North-American Manufacturing Prosperity for all. TBM – The 3 Parallel Imperatives Government Industry Educators IMPROVE POLICY Hold a Policy Blitz process!! IMPROVE Balance IMPROVE & Mobilize TBM Integrated Industrial Supply Chain Strategy Learning system + Productivity Improvements Balance Education/Training/Experience + Focus on local population Local Community Engagement Ensure Learning is economically viable North-American Manufacturing Prosperity for all. 17
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