21st Century Manufacturing The Role of the Manufacturing Extension Partnership Program (2013) / Chapter Skim
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Appendix B: An Evaluation of the MEP: A Cross Study Analysis--Jan Youtie
Appendix B: An Evaluation of the MEP: A Cross Study Analysis--Jan Youtie
Pages 390-427
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From page 390... ...
Not all of these reports have recommendations, but for those that do, this paper will present these recommendations so that similarities and trends may be discerned. This work updates a previous effort to catalog and analyze MEP evaluations conducted by the author along with Philip Shapira (Youtie and Shapira 1998; Shapira 2003)
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, these clients' aggregate results attributed to MEP assistance were $8.4 billion in sales, $1.3 billion in cost savings, $1.9 billion investments, and 72,075 jobs created or retained. An economic impact model applied to the results indicated that for every $1 of federal investment, $32 of economic growth is returned (MEP 2011; see also MEP 1994, 1997, 1998)
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MEP also has invested in other types of special evaluation studies. MEP has used logic-based case studies to examine clients with exceptionally high impacts from MEP services (Cosmos Corporation 1997, 1998, 1999)
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The Michigan Manufacturing Technology Center created a longitudinal data set of survey-based metrics for full-scale comparison, the Performance Benchmarking Service (Luria 1997, Luria and Wiarda 1996)
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. This evaluation system has resulted in a substantial body of evaluation studies related to the MEP program.
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The high cost of private firm service to small manufacturers has long been considered a major barrier to these operations' productivity. Whether MEP competes or complements private sector consulting was the subject of a major study sponsored by the Modernization Forum and carried out by Nexus Associates through surveys of MEP clients, a comparison group of manufacturers, and private consultants (Modernization Forum and Nexus Associates 1997; Oldsman 1997)
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maintained that the program's service mix attracts cost-minimization/lean companies that are not on the path to increasing productivity. Cosmos Corporation led case studies of high impact projects with 25 manufacturing clients (1997)
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Performance Benchmarking database analysis indicated that MEP customers adopted most technologies (with the exception of information technologies) more quickly than non-MEP customers.
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, Nexus Associates (1996) , and Michigan Manufacturing Technology Center (1996)
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Rated moderately effective, the assessment determined that "It is not evident that similar services could not be provided by private entities." The National Commission on Fiscal Responsibility and Reform concluded that MEP provides services that exist in the private sector. GAO's review of the cost share match requirements for centers reported that rural areas, which often are too costly for private consultants to serve, also were harder for the MEP to serve as centers increasingly found it necessary to develop cost share.
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The Deloitte assessment of Pennsylvania extension service impacts concluded that productivity and fiscal impact results from the Nexus Associates 1999 evaluation persisted into the 2000-2003 time period based on findings that the client mix in the more recent period was the same as it was in the earlier study, customer dissatisfaction had not increased, and MEP customer survey results showed the Pennsylvania centers to be high performers in terms of impacts. In contrast, Davila's evaluation of the Chicago center found that in an earlier period, clients were more likely than non-clients to have adopted new machinery and equipment, but by the next year, clients were similar to the general population in this regard (Davila 2004)
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found that Ohio MEP customers were more likely to have retained jobs than non-customers, controlling for industry, size, and other factors. Updating the original Jarmin study into the period in which the MEP achieved full national coverage became a priority for the program.
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MEP's system, which shifted from exploratory to standardized, has shown the usefulness of maintaining center, customer, and 5 Manufacturing Extension Partnership, Next Generation Strategy, Gaithersburg, MD |
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are the most commonly used method, a broad mix of methods has been relied upon such as cost-benefit and economic and fiscal impact analyses, economic models which draw on administrative databases, performance benchmarking information sets, and logic-based case studies. A range of outcomes have been examined in these studies, including capital investments, cost savings, technology adoption, sales, and employment.
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Modernization Forum Enhance work with consultants through using resources to and Nexus Associates identify them, application materials, project proposals, (1997) , Oldsman selecting consultants, developing standard contracts for (1997)
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While some national agency reviews and audits of the program call attention to weaknesses in the larger manufacturer sector as an indication of the value of the MEP, one might question the usefulness of this yardstick to judge the orders-of-magnitude smaller MEP program. Another set of limitations concern the inability of MEP clients to fully report quantitative impacts.
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Another company's mindset and confidence were changed after going through an MEP center-led growth services ideation session, leading to new business lines and sales. The new president of a family-owned business responded to supply chain pressures by transforming the firm, with the help of the extension center, through strategic planning, quality and cellular manufacturing initiatives, adoption of systems integrating manufacturing and accounting, customerprofitability analyses, and human resource training and apprenticeship opportunities; the results included substantial sales gains and payroll increases.
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Youtie, editors. Manufacturing Modernization: Implications of Evaluation Results for Program Improvement and Policy Development: Proceedings of Fourth Workshop on the Evaluation of Industrial Modernization Programs, Atlanta, Georgia: Georgia Institute of Technology.
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Youtie, editors. Manufacturing Modernization: Implications of Evaluation Results for Program Improvement and Policy Development, Proceedings of Fourth Workshop on the Evaluation of Industrial Modernization Programs, Atlanta, Georgia: Georgia Institute of Technology.
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Ann Arbor, MI: Michigan Manufacturing Technology Center. Modernization Forum and Nexus Associates (1997)
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Manufacturing Modernization: Implications of Evaluation Results for Program Improvement and Policy Development, Proceedings of Fourth Workshop on the Evaluation of Industrial Modernization Programs, Atlanta, Georgia: Georgia Institute of Technology, 161-170. Shapira, P
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Atlanta Georgia and Arlington, VA: Georgia Tech Policy Project on Industrial Modernization and SRI International. SRI and Georgia Tech (2008)
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(1998) , Summary of Manufacturing Extension Impact Studies, Georgia Tech Policy Project on Industrial Modernization, Atlanta, GA: Georgia Institute of Technology.
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MEP (1994) Center surveys MEP customers Benefits per company of customer anticipated by 610 impacts firms responding to MEP center surveys in 1994 included 5.5 jobs added or saved, $43,000 savings in labor and material costs, and an increase of almost $370,000 in sales.
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existing and state key areas of significant evaluations programs program-level need. assisting SMEs Luria and Wiarda Benchmarking Michigan MTC MEP customers (1996)
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The average customer added 5.7 percent fewer workers than similar, non participating companies. Shapira and Survey with West Virginia, Participation in a Rephann (1996)
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Longitudinal Longitudinal Manufacturing study, Research extension clients had comparison Databases, 3.4-16 percent higher group 1987-1992, growth in value-added MEP customer per worker than non data from 8 clients . Standard centers value-added production function; Controls for self-selection.
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MEP (1997) Telephone Nationwide, MEP customers report survey of MEP MEP customers $110 million increased customers by sales, $16 million from U.S.
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Increased service coordination, in turn, has mostly improved the assistance delivered to firms, though significant expenditure of resources was required to achieve these benefits. Welch, Oldsman, Survey of 99 members of The median net benefit Shapira, Youtie, manufacturing 13 separate of network and Lee (1997)
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Surveys of Massachusetts 29 percent MMP MEP customers MEP customers customers may not have undertaken changes without MMP assistance. 71 percent of MMP customers reported some improvement in competitiveness.
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MEP (1998) Telephone Nationwide, MEP customers report survey of MEP MEP customers increased sales of customers by nearly $214 million, U.S.
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Wilkins (1998) Center 14 MEP centers No single measure management designates a high or benchmarking low performing center.
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MEP customer data from 9 centers
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NAPA (2004) Panel review National MEP MEP has performed program well but its basic service model, funding formula, and role of the national office need to evolve.
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Survey of Georgia MEP Georgia Tech clients (2008) clients and non- experienced a 12 clients percent increase in value-added per employee over non clients.
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survey models in Georgia USA is significant in and three Georgia product and regions in process innovation but Europe complementaries are not well captured. Stone & Interviews, National, MEP MEP serves 10 percent Associates and document clients of manufacturers, 2 CREC (2010)
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MEP (2011) Client and fiscal Nationwide, $1 of federal impact MEP customers investment in MEP generates $32 of return in economic growth, $3.6 billion in new sales nationally.
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Legislative National MEP Issues around federal history review program funding for the program and the match level of this funding remain. Shapira et al International 7 technology Countries' technology (2011)
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