NEW DIRECTIONS IN MANUFACTURING
Report of a Workshop
THE NATIONAL ACADEMIES PRESS
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NOTICE: The project that is the subject of this report was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance.
This study was supported by Contract No. SB1341-02-C-0048 between the National Academy of Sciences and the Department of Commerce. Any opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the organizations or agencies that provided support for the project.
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COMMITTEE ON NEW DIRECTIONS IN MANUFACTURING
ROBERT J. HERMANN,
Global Technology Partners, LLC, Hartford, Connecticut,
Chair
WILLIAM BAESLACK,
Rensselaer Polytechnic Institute, Troy, New York
EDWARD C. DOWLING,
Cleveland Cliffs, Inc., Cleveland, Ohio
THOMAS W. EAGAR,
Massachusetts Institute of Technology, Cambridge
JOSEPH A. HEIM,
Genie Industries, Redmond, Washington
KARL KEMPF,
Intel Corporation, Chandler, Arizona
MAX LAGALLY,
University of Wisconsin–Madison
JAMES MATTICE,
Universal Technologies Corporation, Dayton, Ohio
ANTHONY C. MULLIGAN,
Advanced Ceramics Research, Inc., Tucson, Arizona
JACK SOLOMON,
Praxair, Inc., Danbury, Connecticut
JOEL YUDKEN,
AFL-CIO, Washington, D.C.
Staff
TONI MARECHAUX, Staff Director
BONNIE SCARBOROUGH, Staff Officer
EMILY ANN MEYER, Research Associate
LAURA TOTH, Senior Project Assistant
BOARD ON MANUFACTURING AND ENGINEERING DESIGN
PAMELA A. DREW,
The Boeing Company, Seattle, Washington,
Chair
CAROL ADKINS,
Sandia National Laboratories, Albuquerque, New Mexico
GREGORY AUNER,
Wayne State University, Detroit, Michigan
THOMAS W. EAGAR,
Massachusetts Institute of Technology, Cambridge
ROBERT FONTANA, JR.,
Hitachi Global Storage Technologies, Alameda, California
PAUL B. GERMERAAD,
Intellectual Assets, Inc., Saratoga, California
ROBERT HATHAWAY,
Oshkosh Truck Corporation, Oshkosh, Wisconsin
RICHARD L. KEGG,
Milacron, Inc. (retired), Cincinnati, Ohio
PRADEEP KHOSLA,
Carnegie Mellon University, Pittsburgh, Pennsylvania
JAY LEE,
University of Wisconsin, Milwaukee
DIANA L. LONG,
Robert C. Byrd Institute for Flexible Manufacturing, South Charleston, West Virginia
JAMES MATTICE,
Universal Technology Corporation, Dayton, Ohio
MANISH MEHTA,
National Center for Manufacturing Sciences, Ann Arbor, Michigan
ANGELO M. NINIVAGGI, JR.,
Plexus, Nampa, Idaho
JAMES. B. O’DWYER,
PPG Industries, Allison Park, Pennsylvania
HERSCHEL REESE,
Dow Corning Corporation, Midland, Michigan
H.M. REININGA,
Rockwell Collins, Cedar Rapids, Iowa
LAWRENCE RHOADES,
Extrude Hone, Irwin, Pennsylvania
JAMES B. RICE, JR.,
Massachusetts Institute of Technology, Cambridge
ALFONSO VELOSA III,
Gartner, Inc., Portland, Oregon
JACK WHITE,
Altarum, Ann Arbor, Michigan
JOEL YUDKEN,
AFL-CIO, Washington, D.C.
Staff
TONI MARECHAUX, Director
Preface
Since the Industrial Revolution, when we exchanged handmade manufactured goods for machine-made, the changing nature of manufacturing has been apparent, and its evolution continues today. Such new developments as micro- and nanomanufacturing, computer-aided manufacturing, and innovative supply chain management are only a few of the current advances in a long history of manufacturing innovations.
To highlight synergies, emphasize partnerships, facilitate discussion, and raise awareness of the far-reaching impacts that these changes in manufacturing will have on other spheres, the Board on Manufacturing and Engineering Design (BMED) of the National Research Council (NRC) established the Committee on New Directions in Manufacturing to organize a workshop and prepare a report of the results. The committee was asked to design a workshop program that would address issues central to the evolving world of manufacturing, such as robust manufacturing; micro- and nanomanufacturing; workforce and education; lean manufacturing; contract manufacturing; surge manufacturing; new strategies for product design and realization; globalization; and regulatory considerations.
“New Directions in Manufacturing,” a workshop held March 27 and 28, 2003, at the National Academies headquarters in Washington, D.C., brought together government policy makers, visionary leaders in the manufacturing industry, members of the manufacturing research community, developers of manufacturing systems, manufacturing workforce representatives and advocates, and end users of manufactured products to give presentations and participate in discussions on the current state of the manufacturing enterprise in the United States and the challenges to be faced in the coming years.
To focus discussion, sessions were convened that addressed the following major drivers for manufacturing: the human element, globalization, challenges and opportunities arising from new technologies, energy and the environment, and national security. Each session consisted of brief presentations by invited speakers, followed by extended panel discussions. The workshop began with a session on the importance of manufacturing and its economic value and ended with a session highlighting the dilemmas faced by manufacturers today.
Part I of this report summarizes the workshop discussion and draws on some of the material in the written presentations to develop a basis for the committee’s deliberations. Parts II through VII contain the individual papers authored by those making presentations. Biographies of the committee members and the workshop agenda are given in the appendixes. While the committee is responsible for the overall quality and accuracy of the report as a record of what transpired at the workshop, the views contained in Part I of the workshop report are not necessarily those of the committee.
This report has been reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the National Research Council’s Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making its published report as sound as possible and to ensure that the report meets institutional standards for objectivity,
evidence, and responsiveness to the study charge. The contents of the review comments and the draft manuscript remain confidential to protect the integrity of the deliberative process. The committee wishes to thank the following individuals for their participation in the review of this report: Thomas C. Mahoney, West Virginia-Manufacturing Extension Partnership; Rito A. Martinez, Intel Workforce Development; Deborah Seifert Nightingale, Massachusetts Institute of Technology; and Philip P. Shapira, Georgia Institute of Technology.
Although the reviewers listed above have provided many constructive comments and suggestions, they were not asked to endorse the report, nor did they see the final draft of the report before its release. The review of this report was overseen by R. Stephen Berry, University of Chicago. Appointed by the NRC, he was responsible for making certain that an independent examination of this report was carried out in accordance with institutional procedures and that all review comments were carefully considered. Responsibility for the final content of this report rests entirely with the authoring committee and the institution.
The committee also thanks the speakers, session chairs, panelists, and others who helped to make the workshop a success, and it acknowledges the work of the NRC staff, including Emily Ann Meyer, Teri Thorowgood, Laura Tóth, and Toni Maréchaux. Workshop participants made uniformly positive comments on the selection of topics and the quality of the talks and discussion sessions. They were particularly pleased that the NRC brought together the diverse segments of the manufacturing community in a single, unifying event.
Robert J. Hermann, Chair
Committee on New Directions in Manufacturing
Contents
Figures and Tables
FIGURES
7-1 |
Local and regional economic dependence on manufacturing, 2000, |
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7-2 |
Decline in U.S. manufacturing employment in rural and metropolitan areas between September 2000 and December 2002, |
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7-3 |
Survey responses indicating concerns for small manufacturers, 2001 and 2003, |
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9-1 |
Aerospace manufacturing industry employment in the United States, 1988 to 2002, |
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9-2 |
Total imports and exports of the U.S. aerospace industry, 1984 to 2002, |
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9-3 |
Funding for manufacturing industry research and development in the United States, 1985 to 1999, |
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11-1 |
Average annual percentage growth in manufacturing for five countries in the periods 1980 to 1990 and 1990 to 2000, |
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11-2 |
Millions of square feet of manufacturing area in the United States and abroad, |
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11-3 |
Manufacturing direct labor cost (in billions of U.S. dollars) in different parts of the world identified as having a large market, low labor cost, or both, |
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12-1 |
The global market for electronic manufacturing services, |
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12-2 |
The outsourcing cycle, |
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13-1 |
Manufacturing’s contribution to the U.S. gross domestic product in 2000, |
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14-1 |
Number of production workers employed by the U.S. manufacturing sector, 1947 to 2002, |
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14-2 |
Manufacturing productivity and real-wage indices, 1949 to 2000, |
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14-3 |
Change in employment of production workers across difference industrial sectors, 1989 to 2000, |
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14-4 |
U.S. manufacturing capacity utilization, January 1986 to May 2002, |
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21-1 |
Three different business models at Sandia National Laboratories, |
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23-1 |
Illustration of real and virtual manufacturing transformations, |
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23-2 |
Information management issues related to creating an integrated architecture for improving manufacturing performance, |
TABLES
6-1 |
Percent Average Annual Productivity Gains in the United States, |
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12-1 |
Common Outsourcing Mistakes and Their Potential Impact, |
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12-2 |
Key Drivers and Obstacles to Outsourcing of Aerospace/Defense Electronics, |
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12-3 |
EMS Companies Reporting Significant Defense/Aerospace Business, |
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13-1 |
Student Respondents’ Perceptions of Manufacturing Careers Versus Their Aspirations, |
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20-1 |
Proposed Manufacturing Descriptors to Be Added to Technology Readiness Levels, |