the evolution of mep: the new strategy roger d. kilmer, director nist manufacturing extension...

The Evolution of MEP: The New Strategy

Roger D. Kilmer, DirectorNIST Manufacturing Extension [email protected] | (301) 975-4676 | www.nist.gov/mepNIST MEP Blog: http://nistmep.blogs.govdelivery.com

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MEP – A Federal Program Focused on Manufacturing

• MEP provides manufacturers with services and access to public and private resources that enhance growth, improve productivity, and expand capacity.

• MEP works with manufacturers ready to invest in their future, to make improvements in the short term, and position themselves to be stronger long-term competitors both domestically and internationally.

• 60 MEP Centers with over 400 field locations

– System wide, Non-Federal staff is over 1,300

– Contracting with over 2,100 third party service providers2April 10, 2013 NACFAM - Advanced Manufacturing Leadership Forum

The MEP Program in Short . . . Program started in 1988, with at least one center in all 50 states by 1996 Objective – enhance the productivity & technological performance of U.S.

manufacturers . . . particularly small and medium sized manufacturers (SMMs)

Focused Mission – driven by manufacturers’ needs & opportunities Partnership Model – Federal/State/Industry Primary Asset – national network with direct access to SMMs Network of public-private partnerships – nationally and locally MEP System budget ~ $300M- 1/3 Federal, 2/3 State and Industry (fees for services)

Emphasis on performance – program and center – measured based upon impact of center services on client firms.

April 10, 2013 NACFAM - Advanced Manufacturing Leadership Forum 3

Manufacturers completing projects with MEP report:• 18,069 jobs created in one year and 43,070 jobs retained

preventing the unemployment rolls from increasing and providing value-added new products to new markets

• $2.5 Billion in new investments – equipment, information systems, and workforce skills

• $2.5 Billion in increased sales – new sales opportunities realized

Data Source: FY2011 Client Impacts Resulting from MEP Services (7,637 surveyed, 6,047 completed)

• For every one dollar of federal investment, MEP generates nearly $20 in new sales growth and $20 in new client investment. This translates into $2.5 billion in new sales annually.

• For every $2,100 of federal investment, MEP creates or retains one manufacturing job.

Outcomes

4April 10, 2013 NACFAM - Advanced Manufacturing Leadership Forum

MEP Centers Across the U.S.

5

800.MEP.4MFGwww.mep.nist.gov

April 10, 2013 NACFAM - Advanced Manufacturing Leadership Forum

Partnering to Drive a National Program

• Customers> 306,000 Small& Medium Sized

Manufacturers - SMMs

Over 2,100 Affiliated Services Providers

Over 1,300 Center Staff

400 Service Locations

60 MEP Centers

• Integration, Knowledge Sharing, & Evaluation

NIST

Serv

ice

Del

iver

yApril 10, 2013 NACFAM - Advanced Manufacturing Leadership Forum 6

What MEP Does

MEP Center areas of common strength- Engineering Services for products and processes- Growth Services – new or expanded market opportunities- Market Diversification- Sustainability- Workforce Development- Lean Manufacturing- Quality Systems

Reach over 31,300 manufacturing firms and complete over 7,600 projects per year*

*Based on FY2012 MEP Center reported performance data.


MEPNEXT GENERATIONSTRATEGY


What we all know…Manufacturing has and continues to change!

Globalization is here to stay and U.S. manufacturing firms are adapting to increasing competition.

Supply Chains are becoming more global, more exclusive, and more competitive.

Innovation (product, process, service & business model) is critical for survival.

Technology advances will be incremental and disruptive. Unfortunately, technology adoption rates at smaller firms still lag those of larger ones.

Sustainability is an increasingly powerful business driver for industry. The triple bottom-line approach to economic, environmental, and societal balance is defining many corporate strategies.


MEP Program Evolution

Build a SystemOptimize

Performance and Accountability

Deliver Higher Value-Added

ServicesDeliver High Value

Focus on Strategic

ManagementDeveloping

Leaders

Develop and Deploy

TechnologyFoster Innovation

Increase Economic

ImpactTechnology Based

Economic Development

1988-1999 2000 20092006 2011


NACFAM - Advanced Manufacturing Leadership Forum 11

Challenges Facing MEP Clients

April 10, 2013

As you look forward over the next 3 years, what do you see as your company’s three most important strategic challenges?

Innovation Pays off For Firms and Employees

Source: Georgia Tech University, “Innovation in Manufacturing: Needs, Practices, and Performance in Georgia 2012-2014”

Innovation, new technology

8.5%

High Quality, 56.1%

Quick Delivery, 12.7%

Adapting products to customer needs, 12.7%

Low price, 17.1%


• Increasing manufacturers’ capacity for innovation resulting in profitable sales growth is the overarching strategy for the MEP.

• The approach is to provide a framework for manufacturers that: Reduces bottom line expenses through lean, quality, & other programs targeting

plant efficiencies – which frees up capacity for business growth. Adds to top line sales through business growth services focused on the

development of new sales, new markets, and new products.

• Next Generation Strategies (NGS) – 5 key inter-related areas:

• Continuous Improvement• Technology Acceleration• Supply Chain• Sustainability• Workforce

Next Generation MEP Strategy


INNOVATION

SERVICESProviding a reliable system that guides companies through the

creation of new ideas, discovery of market

opportunities, and the tools to drive the ideas into

implementation

NEXT GENERATION STRATEGY


MEP’s System for Innovation

Decreases Risk

Increases Speed

Clarity onRaw Concept

Discover

Plan-Do-Study-Act Cycles on Key DEATH Threats

Develop

Make it REAL

Deliver

Go to Market

Define

Developed in Partnership with Eureka! Ranch, Newtown, OH

April 10, 2013 15NACFAM - Advanced Manufacturing Leadership Forum

Tools and Services Supporting Innovation

Examples of MEP System Tools• LEAN Product Development• Tech Scouting • Patent Acceleration• ExporTech• Sustainability

Examples of MEP System Tools• Innovation Engineering• Jump Start• Technology Driven Market

Intelligence• National Innovation

Marketplace

Develop DeliverDefine Discover


TECHNOLOGY

ACCELERATION


Systematically identifying, and capitalizing on,

opportunities to leverage technology

into the processes, products, and services

of manufacturers


MEP Approach to Technology Acceleration

Technology based growth &

competitiveness needs

Technologies and Business Opportunities available from the nation’s research laboratories

(universities, Federal labs, private companies)

• Accelerate technology deployment by connecting needs of US manufacturers to technology sources

• Translate new technologies into real-world applications by:

Connecting manufacturers with solutions Providing commercialization assistance to

manufacturers – • Manufacturing strategy, product

development, IP management, financing, manufacturing scale-up

Leveraging 3rd party partners

• Test and develop new tools and approaches: National Innovation Marketplace Technology Scouting, Supplier Scouting, SBIR

MEP Making the Connection

Technology

and Business

Opportunity

Sources

U.S. Manufacturers


Technology Acceleration Framework


Markets

Influencing Manufacturers’ Growth Strategies

Partners• Trade Assoc.• OEMs• DOE• DOD• DOL• DOT• EDA• EPA• ITA – USEAC• SBA• USPTO

Tools and Services• Continuous Improvement• Innovation Engineering• E3• Tech Scouting• ExporTech• Market Diversification

• SMARTalent• IP Assessment• National Innovation Marketplace• Supplier Scouting - Buy American• Innovation Black Belts• Sales Support

Markets


Connecting to Technology Developers

Tools and Services• Technology Translation• National Innovation Marketplace• SBIR• Technology Scouting

Partners• Universities• Federal Labs• USPTO

• Technology Intermediaries• Innovation

Organizations


Bridging the Gap

Tools and Services• Technology Scouting• Lean Product Development• Technology-Driven Market

Intelligence - TDMI• National Innovation Marketplace• Prototyping Technology• Access to Finance• MTACs (proposed)

Partners• Universities• Federal Labs• Prototyping Firms• Technology Intermediaries• Innovation Organizations• Financial Organizations• NNMI (initially NAMI)


SUPPLYCHAIN


Helping manufacturers strategically

understand, maintain, and expand their

positions in supply chains


NACFAM - Advanced Manufacturing Leadership Forum

Supply Chain Framework

24April 10, 2013

• Government and Partner Relationships

Future of Companies

• Supply Chain Strategy

• Supplier Scouting

• MBE

• GSN

• Supplier Development

Working with companies

• Operational Excellence

• New Markets

• New Customers

• New Sales

ExporTech

ExporTech is a “how to” service to help companies expand into global markets by developing a proactive international growth plan customized for their business, moving the company into actual, profitable export sales.

ExporTech is a collaborative effort between Commerce’s NIST MEP, the U.S. Export Assistance Centers, and District Export Councils, the SBA’s Small Business Development Centers, and State-based international trade programs.

ExporTech helps companies enter or expand in global markets. The program assists participating companies to:

• Develop a vetted international growth plan

• Obtain and apply expert knowledge specific to their needs

• Reduce risks and increase chance of success


• Defense Logistics Agency (DLA), Land & Maritime: Helping DLA find manufacturers capable of producing hard-to-source National Stock Number (NSN) parts by leveraging the knowledge and relationships of our national network.

• BAE Systems, Inc.: Working with BAE Systems and Army ManTech to assess and develop capabilities of military suppliers to operate in a Model-Based Enterprise (MBE) environment as a critical step in DOD’s implementation of MBE throughout its supply chain.

• Department of Veterans Affairs / NAVAIR: Developing procedures to find and assist veteran-owned and service disabled-veteran-owned U.S. manufacturers capable of supplying material to meet NAVAIR demands.

Supplier ScoutingPilot Projects


• Collaboration of federal agencies and MEP to scout for U.S. manufacturing capabilities to support the Buy American Provisions of federal funding programs, including the American Reinvestment and Recovery Act (ARRA).

• MEP’s supplier scouting program focuses on finding business opportunities for small manufacturers by matching their capabilities with the supply chain needs of America’s original equipment manufacturers (OEMs)

• The Department of Energy (DOE), the Department of Transportation (DOT) and National Institute of Standards and Technology (NIST) are currently involved.

Supplier ScoutingBuy American


DOE Pilot Scouting Progress

116 Total Items Scouted56 Items Match Found

Buy American opportunities have totaled over $28M •MEP has found interested companies to match capabilities needed for nearly $20M of these

opportunities

• Avg $ amount for each opportunity that MEP has found a company with capabilities is $335K


Next Generation Rail Supply Chain

• The U.S. Department of Transportation (DOT) and U.S. Department of Commerce (DOC) recently formed a partnership to leverage agency capabilities to ensure the development of a domestic supply base to support intermodal transportation in the United States

• The Next Generation Rail Supply Chain Connectivity brings large carbuilders and OEMs together with smaller, capable and interested U.S. manufacturers to facilitate reaching the goal of 100% domestic content in railcars that will be funded by state and federal dollars.

• Provides an opportunity for U.S. manufacturers to grow and diversify into entering the rail industry.


Edison Nation

• An initiative to bolster U.S. manufacturing by providing to U.S. small and medium manufacturers competitive opportunities that would otherwise go offshore

• Edison Nation hosted Made in America themed searches for new product ideas

• Innovators were invited to submit ideas to eight large retailers

• Retailers will select their top ideas and seek U.S. based manufacturers — through the NIST MEP network — to bid to make the products


Diversification: Innovating into New Market

Clean Room and Medical Devices

With an onsite assessment, MMTC helped management set an operational transition plan. Omega Plastics, located in Southeast Michigan, over a period of 5 years executed that plan and refocused their customer base from 90% automotive to clients in medical (65%), consumer packaging (10-12%), automotive (12-15%), and security and safety products (8%). Other results include a 93% increase in value add per FTE, $160k investment in a clean room and more than 25 new customers in new markets.


Support U.S. Manufacturing Suppliers

• Keep manufacturing production in the U.S. – “Home-shoring”– Improve productivity and innovate to increase competitiveness

• Bring manufacturing production back to the U.S. – “Re-shoring”– Collaborate with the “Reshoring Initiative”– Total Cost of Ownership – cost and risk assessment to inform business

decision making

• Attract foreign direct investment (FDI) in the U.S. – “In-shoring”– New manufacturing facilities– Create opportunities for suppliers– SelectUSA– Make It In America Challenge


• Pilot to develop supply chain optimization services for MEP centers to deliver to manufacturing clients

• Pilot conducted by MEP centers from Illinois, Virginia, South Carolina, California and Texas

• Improve supply chain performance by quantifying supply chain requirements and then focusing on reducing/eliminating bottlenecks in the process through lean, technology scouting, product development and process improvement services

• New tools include: Risk Management Workshops, Total Cost of Ownership Workshops, and a Total Cost of Ownership (TCO) Calculator

• The TCO Calculator considers costs such as: product information, vendor information, financial data, transportation, oversight, expediting, inventory and warehousing, risk management, transportation greenhouse gas emissions, etc.

• Anticipate rollout of these services to the MEP centers late in 2013

MEP and Total Cost of Ownership


• Created by the Executive Order of the President of the United States in June 2011 • Mission is to facilitate business investment – from both domestic and foreign firms – in the

United States• Housed in the U.S. Department of Commerce, International Trade Administration - leverages

staff in 72 markets around the world• What we do:

1. Facilitate Business Inquiries2. Act as Ombudsman and Advocate3. Connect Investors with State/Local EDOs and Provide Guidance to EDOs4. Conduct Investor Outreach and Educate Investors5. Lead and Coordinate an Interagency Working Group

• Contact info: www.SelectUSA.gov or (202) 482-6800

SelectUSA


http://www.selectusa.gov/

Assessing Manufacturing Costs & Risks


http://acetool.commerce.gov

Make It In America Challenge

• An initiative of three Federal Agencies to: – encourage re-shoring of productive activity by U.S. firms– foster increased foreign direct investment (FDI);– encourage foreign and domestic companies to keep or expand their

businesses and jobs in the U.S.; and – train local workers to meet the needs of those businesses.

• Four partnering agencies – EDA, MEP, DOL, Delta Regional Authority

• Target March for release of Federal Funding Opportunity• 15 awards anticipated, up to $40 million available total• MEP Activities: Scout suppliers, determining their capabilities and capacity,

defining gaps; Deliver technical assistance to address gaps; Collect impact and performance metrics.


SUSTAINABILITY


Helping manufacturers gain a competitive

edge, maintain profitability and job

creating growth while increasing energy

efficiency and reducing environmental impacts


Benefits for Manufacturers & Communities

Cost Savings Increased process efficiencies and reduced waste Profitable sustainability practices

Increased Competitiveness State-of-the-art sustainable business practices Technical support to drive entry into new markets Job creation and retention

Access to Technical and Financial Resources Additional funding through federal and state programs Enhanced skills and capabilities for workers

Economic Growth Improved competitiveness of existing manufacturers Enhanced ability to attract new business Increased manufacturing jobs or job retention Trained workforce with skills for a sustainable economy

MEP Partnering to Support Manufacturing through Sustainability

What are GSN and E3? Innovative models for collaboration among manufacturers, utilities, local government, and federal resources to enhance sustainability and competitiveness in local and regional economies as well as supply chains and to spur job growth and innovation.

Partners

The joint collaboration has expanded to include five U.S. federal agencies: DOC, SBA, DOL, DOE, and EPA. These federal partners work directly with local utilities, local government, and small- and medium-sized manufacturers.

GSN: Green Suppliers Network

E3: Economy, Energy, and Environment


WORKFORCE


Helping manufacturers engineer innovation

and business growth utilizing a strategic focus on workforce

planning and implementation


SMARTalent Technology


A Fact & Challenges in Serving SMMs

SMMs want and will pay for “services” and “solutions” that lead to profitable growth

How do we deal with –• Integration across diverse business models of partners

to create a seamless, efficient system• Geography• Capacity – not 10’s, but 100’s or 1000’s of manufacturers• Scale – incremental, not necessarily disruptive• Time frame to transition and implement


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the evolution of mep: the new strategy roger d. kilmer, director nist manufacturing extension...

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