National Institute Of Standards Technology (NIST) Manufacturing .

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National Institute of Standards & Technology (NIST) Manufacturing Extension Partnership (MEP) Michigan Manufacturing Technology g Center Michael J. J Coast, Coast President www.mmtc.org MICHIGAN MANUFACTURING TECHNOLOGY CENTER 1-888-414-6682

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Michigan g Manufacturing g Technology Center Created C d in i 1991 for f the h sole l purpose off serving i Michigan’s small and medium sized manufacturers, ( )( ) non-profit p organization g employing p y g MMTC is a 501(c)(3) 60 full-time staff professionals MMTC is an affiliate of the federal Manufacturing Extension Partnership supported by the National Institute of Standards Technology (NIST) - U.S. Department of Commerce and the Michigan Economic Development Corporation 2

MICHIGAN MANUFACTURING TECHNOLOGY CENTER MEP Centers national network 59 Centers 400 Locations 3

MICHIGAN MANUFACTURING TECHNOLOGY CENTER MMTC - Upper Peninsula A total of 13,600 small manufacturers 400 small manufacturers Largest Industry: Woodworking Dennis West, MMTC dwest@niupnorth.org Marquette MMTC - Saginaw Valley/Northeast 1000 small manufacturers Largest Industry: Automotive Supply Robert Shooks, MMTC rmshook@svsu.edu MMTC - Northwest 600 small manufacturers Largest Industry: Machine Tool Rich Wolin, MMTC rwolin@message.nmc.edu Traverse City MMTC – Genesee Valley 600 small manufacturers Largest Industry: Automotive Supply Marlene Nicol, MMTC mnicol@thegrcc.org University Center MMTC - West 3800 small manufacturers Largest Industry: Office Furniture William Small, MMTC smallw@rightplace.org Grand Rapids Flint MMTC - Southeast MMTC SEMI & Central 7200 small manufacturers Largest Industry: Automotive Supply Bruce Knapp, MMTC bknapp@mmtc.org MMTC Michael Coast President mcoast@mmtc.org 4

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Our Mission To enhance the global competitiveness of Michigan’s small and medium sized manufacturers. Our Goal T h To have a significant i ifi t impact i t on our clients, which results in increased profits reduced operational costs profits, costs, increased sales, and newly created and retained jjobs in Michigan. g 5

MICHIGAN MANUFACTURING TECHNOLOGY CENTER What makes us unique. Our state and federal sponsors p of the training g and measure the impact services provided on the Michigan manufacturers we serve. MMTC clients are interviewed by an independent third-party independent, third party survey firm one year after their project has been completed. completed 6

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Good for Michigan manufacturers. Good for Michigan. Results reported by NIST recently: MMTC’s impact goes beyond individual manufacturing customers. The sales improvements improvements, cost savings savings, and jobs (created and retained) help to enhance Michigan’s strong industrial base. 7

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Nationwide Impact In the most recent year for which evaluation data is available: MEP centers have completed projects with nearly 6 6,700 700 manufacturers When surveyed, the companies reported: Adding or retaining more than 10.5 billion in sales Reducing costs by 1.4 1 4 billion and Creating or retaining more than 57 000 jobs. 57,000 jobs 8

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Source: 2009 MMTC Annual Report 9

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Source: 2009 MMTC Annual Report 10

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Source: 2009 MMTC Annual Report 11

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Initial Evaluation Performance Benchmarking Solution Selling Website Development MMTC A Areas eas of Expertise p Market Diversification Cost Identification and Control EEnvironmental i t l Management Systems 12 Operational Assessment Lean Business Solutions Quality Management Systems Six Sigma

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Performance Benchmarking g Service The Michigan Manufacturing Technology Center is a leading source of performance benchmarking data for manufacturing. Since 1992, MMTC has collected vital operating data on small to medium sized manufacturers across North America. Measuring g more than 80 keyy metrics,, our database now exceeds 11,000 records. All individual company information (input data and outputs reports) are kept strictly confidential. www.performancebenchmarking.org 13 An exclusive service of Michigan Mi hi Manufacturers M f t Save In partnership with the MEDC Michigan MEDC, Mi hi manufacturers (with fewer than 500 employees) can receive one customized b benchmarking h ki reportt each h year at no cost.

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Amazingly, few companies really know how they stack up to their competition! Cum mulative % Answ wering 100 80 Perception 60 Realityy 40 20 0 0 10 20 30 40 50 60 70 80 Cumulative % Self-Ranking 90 100 110

MICHIGAN MANUFACTURING TECHNOLOGY CENTER PBS results will help answer the question “Where do we start?”. Attack scrap & rework? Change payment terms / reengineer collections? Cut inventory levels? Stick to schedule? Less bumping Lower premium freight Attack late deliveries? Attack machine downtime? Attack energy use? Attack employee turnover? G t LLean iin the Get th office? ffi ?

MICHIGAN MANUFACTURING TECHNOLOGY CENTER MMTC’ T MMTC’s Transformation f ti Pl Planner Developed in the late 1990’s 1990 s Proprietary tool of MMTC Licensed for use only to other MEP’s MEP s Compares against “best in class” P j t monetary Projects t iimpactt off iimprovements t Recently enhanced to include the impact growth opportunities Data is refreshed from the “big” PBS database 16

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Transformation Planner: Estimating the VALUE of Improvement and Growth Compares your facility to your competition defined by: Industry sector Customer Market Order Volume and Repetitiveness Places a value on feasible levels of improvement Using data, it shows you the likely payoff of recommended improvement efforts and growth

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Transformation Planner Evaluates: Gross Margin Inventory Turns Value-Added per Full Time Equivalent (FTE) Machine Utilization Order Bumping / Expediting Scrap and Rework / COGS Utilities Expense / Sales Premium Freight / Sales On-Time On Time Delivery Days Receivable

MICHIGAN MANUFACTURING TECHNOLOGY CENTER T Transformation f ti Planner Pl P Provides id Benchmark comparison to companies in your industry sector Ability to set realistic improvement targets f clearly for l l understood d t d performance f metrics ti Calculates one-time and recurring annual financial benefits

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Operational Assessment Completion of confidential questionnaire to run initial Transformation Planner F ilit tour Facility t b by two t member b MMTC team t Interview key managers Validate data Survey all employees Comprehensive report out to team T Team attends tt d MMTC LEAN Executive E ti 20

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Lean Implementation p o Cycle y

MICHIGAN MANUFACTURING TECHNOLOGY CENTER LEAN Executive Workshop p Who: Top p 3 executives from each company p y Those that have decision making power/authority Those responsible for the ultimate success of the company Where: MMTC’s Advanced Training Center in Plymouth, MI How: Variety of media including interactive computer work ((individual and group), g p), brainstorming g on white boards,, hands-on activities and simulation, etc.

MICHIGAN MANUFACTURING TECHNOLOGY CENTER LEAN Executive Workshop p Goal: To align and motivate to action the executive group To clarify your performance improvement goals Elements: Why must your organization achieve Lean performance What is LEAN performance How LEAN performance is achieved What is an executive’s role in a LEAN implementation

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Di Diversifying if i your customer t base b From this To this 24

MICHIGAN MANUFACTURING TECHNOLOGY CENTER M k t Diversification Market Di ifi ti Deliverables Creation of a lead qualification and sales process Custom prospect and contact lists Development of Value Statements / marketing messages Third party market research report T i i on how Training h Internet I t t search h engines i workk A technical website evaluation report Training g on website analytics y and use for sales conversion Integration of an actionable sales and marketing strategy 25

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Case study: Watson Engineering Challenge: Ch ll Effi i l Efficiently increase production g p to meet new throughput orders from Caterpillar. LEAN Exec 3P Kaizen Result: Savings and cost 5.6 million avoidance of Chuck and Dave Watson Watson Engineering Taylor, MI. 200 employees 26

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Watson success Avoided costly addition with cellular layout p time from 6-8 weeks to 5 days y Reduced ship Increased inventory turns from 6.5 to 26 p CAT engineers g Impressed Secured more orders from CAT Savings and cost avoidance of 5.6 million 27

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Case study: Cari Spears and Kevin Reilly Visioneering 115 employees Visioneering Challenge: Meet AS9100 certification to retain existing sales. AS9100 prep training and mentoring Internal auditor training Result:30% increase in revenue with retention of aerospace customers 28

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Visioneering success Certified to AS9100 by registrar on first review 30% revenue increase from retained aerospace customers With LEAN TPM increased machine utilization by 30% 29

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Case study: The Cardinal Group Challenge: Retaining customer sales l and d developing d l i new sales l leads. Market Diversification Boot Camp Result: 25% percent volume increase in new business Tracy McCullough The Cardinal Group 60 employees 30

MICHIGAN MANUFACTURING TECHNOLOGY CENTER The Cardinal Group success Generated new leads from existing and new customers Brought marketing functions inside Increased sales volume 25% 31

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Case study: Venchurs Jeff Wyatt Venchurs 150 employees l Challenge: Communicating the long term strategic plan throughout all levels of the company. LEAN Kaizen Hoshin Kanri deployment p y Result: 6 million increased and retained sales with 350,000 in costs t saving/avoidance i / id 32

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Venchurs success 6 million increased and retained sales 350 000 iin costs 350,000 t saving/avoidance i / id 78,000 investments in plant, machining and equipment, and workforce development 9 jobs increased or retained 33

MICHIGAN MANUFACTURING TECHNOLOGY CENTER for more successes. Please visit our website at www.mmtc.org Thank you. 34

MICHIGAN MANUFACTURING TECHNOLOGY CENTER

MICHIGAN MANUFACTURING TECHNOLOGY CENTER

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Improving i Value-Added l dd d Performance f Impact of LEAN

MICHIGAN MANUFACTURING TECHNOLOGY CENTER LEAN Deliverables Company/management alignment Clearly Cl l stated t t d and d understandable d t d bl goals l and d objectives Establishing E bli hi a LEAN Thinking Thi ki Approach A h Understanding of benefits Applications of LEAN for your company A written plan of action Project plan stating next steps (18-24 months)

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Roles of a LEAN Executive Inspire p the work force ((sponsorship) p p) Provide time and resources to create positive change ((commitment,, maintaining g a planned p schedule)) Define and measure Lean indicators of success (policy p y ) deployment) Communicate (scorecard, dashboard, recognition, visual management) to all employees Recognize improvements and contributions

MICHIGAN MANUFACTURING TECHNOLOGY CENTER What is LEAN? A systematic approach applied to the value chain aimed at streamlining the business processes by: Eliminating WASTE utilizing LEAN tools and techniques resulting lti in: i Improved Information Flow Improved Material Flow Reduced Lead Time Increased Capacity Improved Productivity WASTE the elements of a process that add no value to th product. the d t Waste only adds COST & TIME!

MICHIGAN MANUFACTURING TECHNOLOGY CENTER What is Waste? The elements of a process that add no value to the product Waste only adds COST & TIME Things to remember about Waste Waste is a symptom, not a root cause of the p problem Waste points to problems in the system

MICHIGAN MANUFACTURING TECHNOLOGY CENTER Benefits of applying LEAN Percentage of Benefits Achieved 0 Lead Time Reduction Productivity Increase WIP R Reduction d ti Quality Improvement Space Utilization 25 50 75 100

Institute of Standards Technology (NIST) - U.S. Department of Commerce and the Michigan Economic Development Corporation . MEP Centers national networkMEP Centers national network 59 Centers 400 Locations 3. MICHIGAN MANUFACTURING TECHNOLOGY CENTER MMTC - Upper PeninsulaUpper Peninsula 400 small manufacturers Largest Industry: Woodworking .

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