Congressman John Garamendi Manufacturing Forum

Manex
• Since 1995, The Corporation for Manufacturing Excellence (Manex)
has provided a broad array of proven solutions and resources
exclusively to manufacturers, and their supply chains, enabling them
to compete on a global scale. Our holistic and proven approach
impacts all facets of business performance – from strategy through
implementation.

• The results: Growth. Profitability. Competitive Advantage.

• 60 NIST/MEP Centers throughout the US
• www.nist.gov


Next Generation Manufacturing Strategies

BUILDING PROFITS,
BUSINESS ECOSYSTEMS
& A SKILLED WORKFORCE

Manex Ecosystem


From a recent NGM Survey taken in 2011

• Most Manufacturers recognize the importance of NGM strategies
• 86% rated highly important
• Customer focused innovation 86%
• Sustainability increased 24% over 2009
• But many firms still ignore NGM strategies or pay little attention
• Most face an “execution gap”
• 25% have no strategy for sustainability
• 15% have no strategy for human capital / workforce
• Small Manufacturers face additional challenges
• 25% are at world class supply chain management status vs. 41% for large
manufacturers
• 10% of small manufacturers have both talent management and skills development
programs vs. 33% of large manufacturers
• 41% of small manufacturers have business systems and equipment to support
current business vs. 65% of large manufacturers
• U.S. Manufacturers are looking for help beyond their own walls


From a recent NGM Survey taken in 2011

• A majority of manufacturers have sought support services as needed
or on an on-going basis for:
• Regulatory / Compliance Issues (67%)
• Operations Improvements (64%)
• Workforce Skills development (64%)
• Strategic Planning (52%)
• Innovation / R&D (52%)
• Business Development / Sales (52%)
• Who took the survey
• 87% privately held
• All NASIC Codes represented (all categories of manufacturing)
• Median size $12m Average size $195m
• Employee size 60 median and 595 average
• Four out of five were profitable
• Send an email to grussell@manexconsulting.com for a copy.


Strategy One

CONTINUOUS
IMPROVEMENT


Assumption: Continuous Improvement
Works

• Companies with a long term commitment to Continuous Improvement
exceed their peers in EBITDA and Valuation
• Lean requires C level or VP Operations level support
• The best lean programs are not “Point Solutions” or “Systems
Solutions” but Thinking and Culture deep programs
• Lean creates capacity for the organization to grow. Lean creates
capacity by removing the unneeded elements that you are doing
today, so that you can do more value-added elements tomorrow.
That’s a better measure of continuous improvement than the dollars
saved – although financial improvements occur over time and make
the process worth the effort and investment.
• Must tie lean to HR; Measurement, Reviews, Hire / Fire Decisions
• Culture trumps Strategy


Strategy Two

SUPPLY CHAIN
DEVELOPMENT


Supply Chain Development
• Manufacturing today is a competition among supply chains.
Manufacturers that cannot meet the increasing performance
requirements of their customers, lose their position in those chains—
often to low-cost overseas suppliers. To compete, U.S. manufacturers
must protect their positions in supply chains by being lean, fast, and
innovative.
• Without a well aligned, informed, trained and lean supply chain, larger
OEM’s may find that other investments in plant, equipment, people
and strategy are lost
• Supply chain development is very cross cutting with Continuous
Improvement – Value Stream mapping is a vital tool in the supply
chain development process
• Size, culture, relationships, history, past performance, desire must
align to your needs
• MEP NIM TDMI Tech Scouting – the match.com of manufacturing?


Strategy 3

SUSTAINABILITY


Sustainability
• Sustainability has become a key driver of economic growth as global
demands for diminishing resources increase, renewable and
alternative energy technology needs expand, and environmental
concerns heighten. Whether it is simply a response to rising energy
and resource costs or as a corporate growth strategy, sustainability
seeks to balance economic, environmental, and societal challenges
and opportunities
• Builds off “best practices” in lean manufacturing, waste minimization
and energy efficiency. It has aspects of CI (e.g. Value Stream
Mapping and ISO 14001 and 50001 certification), workforce
development (business stabilization and re-training of displaced
workers), supply chain development (many producers of consumer
goods are requiring their supply chain to be sustainable), and
Technology Acceleration (the need to connect energy developers with
manufacturers to enable energy technologies through the transition,
diffusion, and adoption phases).


Strategy 4

WORK FORCE
DEVELOPMENT


Workforce Development
• Manufacturers must integrate their workforce strategies with their
business goals, develop and manage workforce skills and employee
training, streamline recruitment efforts, reduce turnover, support
performance, and plan for internal career mobility and succession in
their entire employee population – culture trumps strategy
• Key areas
• Sales and Marketing Training
• Leadership Training
• Business Stabilization
• Workforce Readiness
• Retraining Displaced Workers


Strategy 5

TECHNOLOGY
ACCELERATION


Technology Acceleration
• As manufacturers develop new products, enhance existing products,
strive to expand and diversify markets, develop and improve
production and engineering systems and processes, and work to
strengthen competitive positions within supply chains – technology
in some shape or form is frequently a lynchpin enabler.
• Manex:
• Connecting manufacturer technology needs with laboratory technologies
• Technology Scouting
• Supplier Scouting
• Product Development and Commercialization Assistance
• Advanced Manufacturing – Lawrence Livermore Labs
• AM2PED – UC Berkeley, East Bay Economic Development, Bio-Tech


Strategy 6

INNOVATION


Innovation “If you’re not Meaningfully
Unique you better be cheaper.”

• Innovation Engineering
• A System that Increases Innovation Speed & Decreases Risk - This is
accomplished through teaching and installing a reliable system for how
organizations create, communicate and commercialize meaningfully unique ideas.
• A Quantified Pipeline of Innovations - Organizations develop a quantified pipeline of
innovations starting with the acceleration of existing ideas and moving to the
definition and discovery of new ideas that address very important problems and
opportunities.
• Transform Cultural Attitudes about Innovation - Participating organizations see a
transformation of employees’ cultural attitudes, acceptance and proactive
involvement with innovation. Every employee, every week, is thinking of ideas to
help the company work smarter towards real profitable growth.
• NIM: National Innovation Market Place


Innovation “If you’re not Meaningfully
Unique you better be cheaper.”
• NIM: National Innovation Market Place
• Complimentary online service that connects manufacturers to
technology and business opportunities resulting in new markets and
new products necessary for success in the global marketplace.
• Innovation Buying Request
$2 billion in innovative buying opportunities for inventions and services. Requests
are categorized by industry and area of expertise. Any company that can fulfill a
given request can respond directly to the request with an electronic form provided
on the USA NIM website.
• Innovation Business Opportunities
$948 million in opportunities in a wide variety of new technologies, patents, and
trade secrets that may enable new and/or improved products and services for your
business.
• Manufacturing or R&D Expertise
• Email grussell@manexconsulting.com if you would like more
information about Made in Northern CA and NIM Programs


Manex Process


Sustainability Process Map


services & solutions

“Working with Manex made the process seem very easy in terms
of efficiency and smoothness. Many companies could learn
valuable lessons from Manex. We look forward to working
with Manex in the future when the need arises.”

- David Allen, VP Manufacturing and Operations
Marinco


team

“The Manex team was instrumental in assisting our team during our
Value Stream Mapping Roadmap development sessions.
As a result, we have been working diligently on the
implementation of our Roadmap which has had significant impact on
reducing our lead time, increasing our quality and increasing our value
added activity during our processes.”

- Mauro Folena, Director of Operations
Coherent, Inc.


case studies

“Manex has been a tremendous partner helping us with our Lean
transformation. With their in-depth expertise, on-site support, and
commitment to results, they have been instrumental helping us not
only achieve significant results to date, but also ensuring that we have
.
the processes in place to sustain them in the future.”

- Tommy Dockery, Western Region Manager
Del Monte Foods


www.manexconsulting.com

925-807-5100


Congressman John Garamendi Manufacturing Forum

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