Manufacturing Value, A CVG Second Thursday Event, 10/10/13


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On October 10th, the Second Thursday panel will speak to current trends in advanced manufacturing, including additive manufacturing (3D Printing), and the impact these current trends are having on the manufacturing industry and the companies that operate in this environment.

How do these trends impact companies and their future value?
How can companies position themselves to take advantage of these trends and maximize their future value?
What will investors and strategic partners expect from companies in the future?
Where do leaders in the industry see these trends going?

A panel of experts will answer all these questions with the goal of helping companies find opportunities to harness the power of these exciting trends.

Published in: Technology, Business
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  • Manufacturing Value, A CVG Second Thursday Event, 10/10/13

    1. 1. THANK YOU CVG SPONSORS B Round A Round Venture Capital Sponsors Professional Service Firms
    2. 2. 2013 - 2014 Boardroom Series Topics Foreign Investments into US Ventures: Incentives and Structures Presented by Updike, Kelly & Spellacy Effective Integrated Online Strategies Presented by Mintz + Hoke Fundraising Strategies for Growth Companies Presented by Enhanced Capital Multistate Tax - Issues and Opportunities Presented by Fiondella, Milone & LaSaracina Visit for the full schedule Exit Strategies for Founders Presented by Shipman & Goodwin Governance Dynamics Among Entrepreneurs, Boards of Directors and Investors: Affirmative and Negative Controls, Independent Committees and Other Tricks of the Trade Presented by Robinson & Cole Attracting and Working with Chinese Investors Presented by Wiggin and Dana Health Care Transactions in CT: Recent Market and Process Developments Presented by Murtha Cullina, Attorneys at Law Offered weekly on Wednesdays. Includes continental breakfast, networking and a presentation. No cost to participate, but seating is limited and registration is required.
    3. 3. Manufacturing Value Trends in Advanced Manufacturing and How to Maximize Value Welcome by Frank Milone Matt Monteith Partner Associate Fiondella, Milone & LaSaracina Shipman and Goodwin LLP
    4. 4. Three Minute Pitches Tamion Corporation, presented by Thomas Psillas Zaelab, presented by Evan Klein
    5. 5. Manufacturing Value Trends in Advanced Manufacturing and How to Maximize Value Moderator Jack Crane Director of Growth Services CONNSTEP, Inc.
    6. 6. Manufacturing Value Trends in Advanced Manufacturing and How to Maximize Value Panelists Dave Babcock Lynn Gambill Partner nPlusOne Consulting Chief Engineer, Manufacturing Engineering and Global Services Engineering Don Hardie Severine Zygmont Partner Kidd & Company COO & Co-Founder Oxford Performance Materials Pratt & Whitney @CTVenture
    7. 7. NASA Plans First 3D Printer 2014 “3D printing in the International Space Station could reduce the cost and frequency of resupply missions. US space agency NASA is planning to launch a 3D printer into space next year to help astronauts manufacture spare parts and tools in zero gravity.” 30 September 2013 BBC
    8. 8. Begin With The End In Mind Vision, mission, culture and values... Where and how will you compete?  Must be strategically focused  Know why your company matters, i.e. why are you relevant to world and customers?  Must be customer focused – have a view through the customers eyes
    9. 9. Focus On The Right “Few” Things  Profitable sales  Earnings Before Interest Taxes Depreciation and Amortization (EBITDA)  Operating cash flow  Innovate constantly; Intellectual Property (IP) is important to creating value
    10. 10. Extracting Value Succession planning:    Does not get enough attention Without it, you can hurt value Chaos at critical points in time Advisors vs. Independent Board ? Adding value to company’s strategic execution through accountability
    11. 11. Final thoughts  Measure yourself and your team   Quantitative measures related to value creation Dashboards and monthly financials  Agility: strategy adjustments – very important – exit strategy fast when strategy does not work  Presume nothing- presumption is the mother of all disasters.
    12. 12. Advanced Manufacturing (AM) Advanced manufacturing attributes…. • Technology is integral to the overall process • Computer and information technologies • Advanced design • Advanced sensing and measuring • Robotics/automation • New processes or/and new materials (evolutionary and revolutionary) • Nanomanufacturing • Composites • Computer controls/automation/robotics • Powdered metallurgy (PM) • Additive manufacturing • Chemical/Biochemical manufacturing • Innovation new way to do old stuff; new way to do new stuff • Utilize technology, process and materials to improve cost and finished product Bottom Line: How to create a sustainable competitive advantage? 1
    13. 13. The Good News Economic Activity Generated by $1 of Sector Output 2
    14. 14. The Bad News Manufacturing Employment Trends, 1962 - 2010 3
    15. 15. Advanced Manufacturing Broad Investment considerations: • Disruption/change is good…potentially • Backing the right horse is about more than just the technology • Fast follower v. bleeding edge innovator • Pioneers with arrows in their backs • Industry and product attributes will dictate adoption rates • The “land grab” trap – know your market and your customer • Policy considerations • Report to the President on Capturing Domestic Competitive Advantage in Advanced Manufacturing (July 2012) potential headwinds and tailwinds 4
    16. 16. Thoroughly Non-Scientific AM Continuum Investment Stages Start-up/Venture Capital Growth equity Transformation of mature industries/consolidati ons/LBOs AM Attributes Breakthrough Technologies/ R&D •Nanotechnology •Additive manufacturing (new areas) •Biomanufacturing •Sustainable manufacturing Applied Research/ Product Development Roll-out/Design for Manufacturing •Additive manufacturing (medical; consumer) •Advanced manufacturing and testing equipment •Visualization, informatics and •Advanced forming and joining digital manufacturing •Sensing, measurement and process •Flexible electronics manufacturing control 5
    17. 17. 3D Manufacturing (Additive Manufacturing) • Broad Potential Applicability: o Consumer o Industrial o Medical • Competitive Advantages o Better quality o Less waste/scrap o Shorter cycle times o Increased design flexibility o Lower cost (material & labor) • Barriers to Adoption o Capital o Technology/know how o End-use applications (product strength and size of market) 6
    18. 18. Aerospace Case Study - Additive Manufacturing “Conventional wisdom:” 3D’s applicability will be limited to small, non-flight-critical and non-load-bearing parts. • GE Example: o Fuel nozzles for CFM Leap (GE JV with Parker) o By 2020 >100,000 parts on GE & CFM engines will use AM o Investing $3.5bn over next five years to develop AM in-house • China as the Spoiler? o AVIC Heavy Machinery 16 ft. 3D Ti part • Claims AM being used in major load bearing parts (J15 landing gear) o COMAC C919 (large structural AM parts) o AVIC: AM reduces costs 90% Source: Aerospace’s Next Disruptive Technology (Kevin Michaels) 7
    19. 19. In Conclusion • Advanced manufacturing matters tremendously, both economically and as a matter of driving innovation and maintaining competitiveness • US has under-invested, but the tide seems to be turning…hopefully • Numerous opportunity to create winners by allocating resources to deploy “evolutionary” AM techniques in existing enterprises o Requires capital AND skilled workforce o Especially true in consolidating supply chains like aerospace • Numerous potential “break-through” technologies, particularly in life sciences and nano-technology 8
    20. 20. Crossroads Venture Group Trends in Advanced Manufacturing Thursday, October 10, 2013
    21. 21. What do we mean by Advanced Manufacturing? • If you ask wiki: Advanced manufacturing is the use of innovative technology to improve products or processes • If you ask OPM: Advanced manufacturing is the use and convergence of advanced technologies to best manufacture critical components and highly specified parts – – – – Material technologies Design technologies Manufacturing process technologies Inspection/measurement technologies
    22. 22. What it means to OPM: Differentiation • OPM is a small business specializing in innovative material solutions for the biomedical & aerospace industries • Advanced Manufacturing means having: – The right material: high performance polymer [PEKK] – The ability to design organic or complex structures – A validated manufacturing process: 3D printing or additive manufacturing [HTLS] – The right tools and systems to assure repeatability and dimensional & mechanical accuracy • Certified Quality System • QC lab with metrology capabilities [Structured Light Scanning]
    23. 23. What it means to OPM: Value Creation      Part manufacturer not “job shop” Commercial production not prototyping Critical components not b-spoke Deliver a solution not a model Differentiation = value creation OXFAB™ Industrial Parts OXPEKK® Raw Materials OsteoFab™ Biomedical Parts Metrology Sciences
    24. 24. Rapid Prototyping vs. Additive Manufacturing • 3D printing exists since the early 1980’s – quickly fabricate a scale model of a physical part using 3D CAD data – perfect for inexpensive marketing/demo objects and prototyping → Rapid Prototyping – No need for validated processes – No need to control dimensions – No differentiation → Additive Manufacturing: means MANUFACTURING – Certified to ISO13485, ISO9001 & AS9100C and FDA compliant (21 CFR 820) – Growth – Connecticut  We differentiate ourselves by our ability to deliver commercial parts and critical component to the industry using 3D printing
    25. 25. Where did it lead OPM to? • FDA Clearance in 2013FEB for 3D printed cranial implants • Contract from Northrop Grumman Corporation for the development of design parameters for 3D printed PEKK parts HTR-PE KK • 100th cranial implant shipped on Oct 1st of this year • 12,000 sq-ft facility expansion in South Windsor for additional 3D printing capacity to support the growing demand of the biomedical and aerospace markets Manufactured using O steoFab™ T echnology. Introducing Poly-Ether-Ketone-Ketone Proven biocompatibility1, greater strength2 This product is not currently available in the U.S. Patient-Matched Implant
    26. 26. Thank You
    27. 27. Closing Remarks Liddy Karter Executive Director, Crossroads Venture Group Managing Director, Enhanced Capital Partners @CTVenture 28
    28. 28. CVG Upcoming Events Second Thursdays November 14 Private Investors in CT Stamford November 7, 2013 Boardroom Series Holiday Party December 5, 2013 | Fairfield Full schedule on
    29. 29. THANK YOU CVG SPONSORS B Round A Round Venture Capital Sponsors Professional Service Firms
    30. 30. CVG Events Calendar Offers Over 60 Events Second Thursday events are free for members.