21st Century Manufacturing The Role of the Manufacturing Extension Partnership Program (2013) / Chapter Skim
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6 New Approach: Next Generation Strategy
6 New Approach: Next Generation Strategy
Pages 103-136
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From page 103... ...
Published in 2010, the Stone study stated that: "MEP needs to provide a broader range of services, especially services that foster growth, innovation and sustainability.2 These include in particular those that focus more on innovation, beyond the process improvements that were a traditional MEP focus." 3 Based on this view, MEP has recast its mission statement: Vision: MEP is a catalyst for strengthening American manufacturing -- accelerating its ongoing transformation into a more efficient and powerful engine of innovation driving economic growth and job creation. Mission: To act as a strategic advisor to promote business growth and connect manufacturers to public and private 1 NIST, The Future of the Manufacturing Extension Partnership, October 2008, p.
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From page 104... ...
TECHNOLOGY ACCELERATION MEP's Technology Acceleration strategy has four principal components:6 Connecting manufacturer technology needs with technology sources. 4 MEP, "The Future of the Hollings Manufacturing Extension Partnership," December 2008, pp.
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From page 105... ...
Product development and commercialization assistance. We describe each of these components in turn below: Connecting Manufacturers to Technology Providers MEP's signature initiative in the area of technology acceleration has been the National Innovation Marketplace (NIM)
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The objective of the Technology Scouting Training Program is to train MEP center staff members to be able to acquire and undertake successful technology scouting mission assignments for MEP client companies. It is not yet 10 MEP, "Technology Scouting," |
From page 107... ...
RTI staff note that TS/TDMI assignments require an entirely different level and type of engagement with client companies. Existing lean manufacturing assignments are largely based on sales to project managers and line supervisors; TS/TDMI assignments require connections to C-level executives (e.g., chief executive officers [CEO]
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From page 108... ...
The importance of supplier development in the new MEP strategy is discussed further in the section on supplier development below. Lean Product Development and Commercialization Assistance MEP is developing three sets of tools for supporting product development and commercialization related to the Technology Acceleration initiative: Lean Product Development uses existing lean manufacturing tools to focus on product development to support a waste-conscious, disciplined approach.
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From page 109... ...
SUPPLIER DEVELOPMENT MEP argues that it is well positioned to understand the rapid changes in supply chains now under way, and to help small firms position themselves as suppliers by providing assessments of industry dynamics and market intelligence. In recent years, SMEs have faced relentless price pressure, both domestic and especially from abroad.
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22 NIST MEP Supply Chain Development Initiative: Improving the competitiveness of U.S. supply chains, May 9, 2012.
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Supply Chain Risk Mgmt Supply Chain Strategy Workshop Supply Chain Strategy Workshop Total Cost of Ownership Support Technology Scouting/Innovation Failure Mode Effects Analysis Demand Planning/Volatility Collaborative New Product for Supply Chain Partners Workshop & Services Development Engineering Reduction for Prime Supply Chain Opportunities Identify and Address Choke Points X X Increase ERP/MRP Effectiveness X Mitigate Global Risks X X Document Supply Chain Strategy X X Reduce/Manage Volatility X X Align Supply Chain Metrics with Long- X X term Business Focus Optimization of Supply Chain X X X Recognize Emergent Needs for Future Supplier Capabilities Expand Supplier Matching Capability X Better TCO Decision X Enhance Value Chain Collaboration X Among Suppliers Improve OEM/Supplier Product X Development Collaboration SOURCE: NIST MEP, op.
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27 Jim Garrett, Vadxx, NAS Ohio workshop, "Diversity and Achievements: The Role of Manufacturing Extension Partnerships in the Midwest," March 26, 2012.
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For example, Purdue University now offers three levels of "Green Ed," including a certification as an SME Green Specialist, as part of its green enterprise development program.30 WORKFORCE DEVELOPMENT NIST MEP's identification of workforce development as one of the five strategic dimensions signals an effort to reinforce and extend efforts already under way in some MEP centers. Under this strategy, MEP proposes to help firms take a more deliberate approach to developing their workforce as they adopt new technologies and new business models.
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Environmental Protection Agency (EPA) , designed to field test EPA's energy and environment toolkit and integrate it into the lean manufacturing techniques employed by the MEPs.
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Accessed July 17, 2012. Innovation Engineering Leadership Institute.
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,37 the American Welding Society, the Manufacturing Skill Standards Council, the National Institute of Metalworking Skills, and the Society of Manufacturing Engineers. This system of certification provides workers with "a system of stackable credentials applicable to all sectors in the manufacturing industry" that are nationally portable and recognized across industry.38 In June 2011, President Obama announced a major expansion of Skills for America's Future, an industry-led initiative that aims to improve industry partnerships with community colleges for skills development.39 The expansion includes an expansion of the Manufacturing Skills Certification System, designed to give students access to manufacturing credentials valued by employers.
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From page 117... ...
Here, we use primarily E! WW as this nomenclature is more familiar to centers and other MEP stakeholders.42 MEP is strongly encouraging MEP centers to adopt this program as the core of their innovation engineering curriculum -- utilization of 40 According to the MEP, "This program was designed by the Manufacturing Institute, an affiliated non-profit of the National Association of Manufacturers, in partnership with leading manufacturing firms, the Gates Foundation, and the Lumina Foundation, and key players in education and training including ACT, the Society of Manufacturing Engineers, the American Welding Society, the National Institute of Metalworking Skills, and the Manufacturing Skills Standards Council." 41 White House, June 8, 2012, op .cit.
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From page 118... ...
The program appears to provide much less guidance in implementing new ideas, although it is probably fair to say that this would be the place where the MEP center itself steps in to provide additional consulting services.45 Based on the published schedule for fall 2012, one to two workshops are held each month by IELI, usually in conjunction with MEP.46 As we have seen above, the methodologies for lean manufacturing are fairly well known. Numerous studies have addressed their effectiveness, and they are now a staple of every MBA course.
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From page 119... ...
At the same time, all centers are being encouraged to investigate how workforce development and talent management can support the growth of manufacturing businesses, and the integration of workforce components into strategic business planning.48 CONTINUOUS IMPROVEMENT The new strategy calls on MEP to promote operational excellence within manufacturers by providing services that minimize expenses and reduce wasted activities. This strategic thrust reflects a continued focus on lean manufacturing.49 This component of MEP's new strategy is discussed in detail in Chapter 3.
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can offer specialized assistance at the final stages of this TABLE 6-2 Comparing Exporting and Nonexporting SMEs in Manufacturing Sectors NonIndicator Exporters exporters Key Finding Average Revenue 3.9 1.5 SME manufacturers that export per Firm (Millions earned more revenue than nonof Dollars, 2009) exporting SME manufacturers Manufacturer 36.8 -6.8 Exporting SME manufacturers' Revenue Growth revenue grew faster than that of non(Percent Change, exporting SMEs 2005-2009)
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According to MEP, "ExporTech is deployed nationally as a collaboration between the Manufacturing Extension Partnership, U.S. Export Assistance Centers, and other partners including District Export Councils, State Trade Offices, Ex-Im Bank and SBA.
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Ohio MEP center. TechSolve and MAGNET.
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124 21ST CENTURY MANUFACTURING Box 6-2 ExporTech Case Study: Raloid Corporation, Reisterstown, Maryland Company Profile Raloid Corporation is a contract manufacturer of close tolerance components and assemblies for the defense industry. The company has 75 employees and approximately $10 million in annual sales, and competes with much larger companies.
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From page 125... ...
cit. 60 Daniel E.Berry, Strengthening MAGNET as an Element of the Ohio MEP Center, NAS Ohio workshop, "Diversity and Achievements: The Role of Manufacturing Extension Partnership in the Midwest," March 26, 2012.
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We wouldn't be here without it" (client CEO) ; for another, early design assistance means that "The 62 James W Griffith, private communication, NAS Ohio workshop, March 2013.
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In particular, it requires that MEP center staff gain competency in providing strategic advice to a firm's leadership. This in turn requires either that existing center staff be heavily retrained, or that new senior staff with additional capabilities, especially in strategic marketing, be brought on board.
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From page 128... ...
These kinds of impacts are therefore difficult to capture in center metrics. CHALLENGES IN IMPLEMENTING THE NEW STRATEGY The new strategy is a very ambitious set of objectives, taking a wellknown program with a 20-year track record and turning it in an almost entirely Box 6-3 Attributes of leading MEP Centers Many of the MEP centers that appear to be embracing the initiatives of the new strategy share similar attributes.
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From page 129... ...
Building the Required Capacity Each of the strategic components listed above will require development of new tools and capabilities for the MEP centers and in some cases for NIST MEP. It is certainly worth noting that new services required by both NIST MEP and other center funding partners place a substantial burden on what may be a small center staff.
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(DED) Expand existing Supply Chain National Accounts.
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; Nebraska Manufacturing Extension Partnership (NMEP)
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A more proactive approach from NIST MEP to enhance peer-to-peer communication through a variety of formats would be very welcome, and we believe would be welcomed by many center directors and staff. Outreach and Expansion While the centers and MEP have good data on companies with which they have worked closely, these account for only a small percentage of possible support recipients.
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From page 133... ...
Moreover, the inability of either NIST MEP or the most heavily funded contractor, the Innovation Engineering Leadership Institute, to provide any substantial analysis of program impacts is worrying. A center-piece program that has received substantial federal funding but provided no documented results indicates that, at best, the
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The issue is when and how NIST MEP will recognize it and make necessary adjustments. Existing Metrics MEP is considerably more advanced than agency Small Business Innovation Research (SBIR)
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From page 135... ...
As NIST encourages the expansion of MEP centers into new growth and innovation services, it will be especially important to ensure that best practices from leading centers are widely adopted, and that center staff have more and improved capacities to share their experience and expertise. Looking beyond the challenges of this transition, NIST and the wider community of stakeholders in manufacturing and innovation should also consider how MEP centers might contribute to the emerging landscape for manufacturing support and hence to the development of robust innovation and 70 MEP has not provided -- and may not have -- accurate data on the take-up of innovation services at the center level.
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From page 136... ...
136 21ST CENTURY MANUFACTURING manufacturing ecosystems across the United States. For example, further consideration in national and state manufacturing support and innovation strategies is needed to address how MEP centers can fruitfully cooperate with other individual public and private organizations, including the institutes of the proposed National Network of Manufacturing Innovation, in translating research into commercial products, prototypes, and industrial production processes and in enhancing demand and capability among small- and medium-sized manufacturers for such engagements.
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