quality in disruption!party+2015...12/13/2015 1 tbm take back manufacturing quality in disruption!...

12/13/2015

1

TBM Take Back Manufacturing WWW.SME-TBM.ORG

Quality in Disruption!

How should Quality Engineering and Management systems of the

future support the advanced manufacturing strategies to compete

in the more disruptive global business environment ?

Nigel SouthwayTBM Advocate & SME Past Chair

NIGEL SOUTHWAY

• 40+ years Broad Business and Manufacturing Experience

• British Engineering Apprentice…Aerospace/Electronics (1966)

• BSc EEE C-Eng. in Engineering/MSc Management…. (Bristol)

• Manufacturing Engineer (1972)

• MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation 1980,s

• Engineer / Manager / Director / VP Operations / General Manager

• Consultant/Change Agent/Educator/Coach for LEAN business improvement

• AUTHOR : CYCLE TIME MANAGEMENT… Fast Track to Productivity Improvement

• Consulted many organizations in different industry sectors in many countries.

• Assisting many Global Sourcing programs and Joint Ventures (2004 Onward)

• Society of Manufacturing Engineers …2012/2013 Chair Toronto Chapter

• Advocate for the Take Back Manufacturing and Reshoring Forum

• Sheridan lecturer on Advanced Manufacturing and Sustainable Supply Chains www.nigelsouthwayNEXUS

Owner of NEXUS CONSULTING SERVICE

(1992)

http://www.nigelsouthway.com/

12/13/2015

2

TBMTake Back Manufacturing


CANADA MANUFACTURING

4The future of Manufacturing in Ontario’s economy.

A NORTH AMERICAN PROBLEM

12/13/2015

3

TBMTake Back Manufacturing

www.SME-TBM.org

A Forum Dedicated to Restoring

our Manufacturing Sectors.

25 Technical Associations

3 Trade associations

5 Educational policy makers

7 Media experts

3 Local government reps

5 Industry experts


CIM: What factors are driving manufacturers'

decisions to bring production back to Canada?

Southway: It's a North American-wide realization that

off shoring is getting more expensive with increased

transportation expense due to oil costs, as well as

labor price escalation in emerging economies. Many

corporations and large consulting groups also recognize

that there are many hidden costs and issues in supporting

a remote supply chain. In general, local manufacturing is

now considered to be no more expensive than offshore

production. The landed cost tipping point in some sectors

and commodities is projected to be reached by 2015.

Local manufacturing also offers more stability and the

ability to innovate at home more effectively. And, being

closer to the customer has added inventory and flexibility

advantages.

CIM: How can industry members communicate the

importance and value of manufacturing to the

general population?

Southway: We have had three decades of people thinking

manufacturing is bad news. Manufacturing has been

viewed as dirty and dangerous, risky and unstable

employment, and so forth. We have a lot of work to do to

change this negative image. Just talking about TBM, telling

the real story, and showing what we do will help.

If we look at the long term, today's 12- to 15-year-olds will

lead the way. When they reach 22 years old, we will have a

thriving localized manufacturing economy. It certainly won't

be based on cheap oil or energy, but it will be very lean

and very green. Things will be made in local manufacturing

hubs or clusters. Factories will be very high-tech and their

operation will demand high levels of skill and education.

All this needs vision and a can-do attitude. Not having both

of these is our biggest risk.Take Back Manufacturing

http://www.sme-tbm.org/

12/13/2015

4

7

?Change?.. In our life cycle

British Engineering Apprenticeship

12/13/2015

5

?British Engineering Apprenticeship

What is it?

Slide Rule

12/13/2015

6

Extinct1960

1975

2015

1985

1960

1980

Now

Vernier gauge

1995

CMM Coordinate Measurement Machine

CMM

Arm

Dial

Digital

1960

12/13/2015

7

Slide RuleDeveloped in the 17th century based on the

emerging work on logarithms by John Napier.

The Vernier scale, which contributed extra

precision, was invented in 1631 by Pierre

Vernier (1580–1637).

Vernier Gauge

14

Global Change is taking place at an Exponential Rate!!

Globalization is Enabling Change (Positively and Negatively)…

Exponential

https://en.wikipedia.org/wiki/Logarithms

https://en.wikipedia.org/wiki/John_Napier

https://en.wikipedia.org/wiki/Pierre_Vernier

12/13/2015

8

The Planet Earth has a relatively new virus


• This Destructive organism is multiplying at an exponential rate

• Infiltrates all ecosystems and habitats• Destroys forests and attacks all forms of life• Increases pollution levels in rivers and oceans• Has a negative impact on the air quality• May be responsible for adverse weather changes• The virus is “mutating” to further enhance the danger

• Its called …Man!

Hopefully it will mutate into a benign state before itdestroys the whole planet! .

12/13/2015

9






Its called …Man! It likes to live now ………and pay later!

Hopefully it will mutate into a benign state before it destroys the whole planet!






Its called …Man! It likes to live now ………and pay later! ….. It loves to consume!

Hopefully it will mutate into a benign state before it destroys the whole planet!

12/13/2015

10

19



Religious/Ethnic pressures

Higher Expectations to share wealth

Cultural Mobility

National boundaries (Much Migration)

Technology (Supply Chains)

Market and Commerce (Borderless)

Economics (Free Market thinking)

Politics (Dysfunctional National Governments)

20



Outlook???More issues

than solutions!



Cultural Mobility






12/13/2015

11

21



Age of Disruption

Ecological Sustainability Issues

Age of Over-Supply



Cultural Mobility






22

12/13/2015

12

GLOBALIZED

MANUFACTURING

24

2B

4B

6B

1950 20001960 1970 1980 1990 2010 2015 2020

The Global Workforce250%

IncreasePeople

Demand

For Labor

In all forms

Capacity

“Over-Supply”

Higher Productivity via Technology

+

Unequal Consumer/Output balance

Added 3 Billion to the workforce

[25% un or under employed]

34

79

101112

21

13 2322

2019

15138

UNDER+UN UNDER

% %

Global un and under Employment

12/13/2015

13

25

Globalized Trade has outpaced Wealth Creation

Wealth

Dilution

Winners

Emerging Economies

Bankers

Traders

Global Corporations

Global Capitalists

Losers

Mature Economies

National governments

Mature Economy Middle class

Citizen level investors

Youth early in careers

The planet!

Significant failure to correctly

manage trade balance

Trade is an inefficient method to generate wealth!

26

½ Full or ½ Empty

The optimist says the glass is half full.

The pessimist says the glass is half empty.

Globalization?

GOOD! BAD!

12/13/2015

14

27





Cultural Mobility



Market and Commerce (unbalanced)

Economics (unplanned)

Politics

Age of Disruption


Age of Over-Supply

GLOBALIZED

MANUFACTURING

? ?We Question its future Sustainability

12/13/2015

15

29

Waste of VERY Expensive Bunker Fuel

Much Non-Value-Adding Inventory

PURE WASTE

30

Waste of VERY Expensive Bunker Fuel

This low grade bunker fuel is used by the worlds 90,000 cargo ships

A single large container ship emits pollutants equivalent to 50 million cars.

Total container ship pollution is 6 times that of the TOTAL cars in world

2,000 times the amount of sulfur compared to diesel automobiles.

Container ships account for 90% of global trade by volume.

Our Economies will be jeopardized by this global warming enabler

VERY LARGE CARBON FOOTPRINT

12/13/2015

16

GLOBALIZED

MANUFACTURING

32

12/13/2015

17

33

Global Warming

Air Pollution

34

12/13/2015

18

WASTE

35

Water…. A “Thirsty” Resource!!

A Car takes 39,090 gallons of water to make Plus 2,000 gallons for the Tires

Pair of Jeans 1,800 gallons of water to grow enough cotton to produce just one pair.

Cotton T-Shirt… 400 gallons of water to grow the cotton.

Single Board of Lumber takes 5.4 gallons of water to grow enough wood

Barrel of Beer…(32 gallons of booze), takes 1,500 gallons of water.

To-Go Latte…takes 53 gallons to make every latte, grow coffee, sugar, plastic lid, the

sleeve and the cup itself. . .

12/13/2015

19

37

Individual Bottled Water

1.85 gallons of water to manufacture the plastic for the bottle in

the average ½ pint commercial bottle of water.

38

North Americans Water Consumption1.5 Olympic swimming pools per year per person

24,000 pints of beer a week per person

13.5 showers a day per person

12/13/2015

20

SUSTAINABILITY

39

Or how to become Lean and Green

On a Global level

Balance achieved via STRONG National Self Determination

ISO Standard

ISO 9001; ISO 31000; ISO 31010;

ISO 14001

ISO 26000; OHSAS 18001

The “What” is easy to define

It’s the “How” that is hard!

High Waste and Transportation

Volatile Labor and Wealth Transients

Improved Prosperity and Sustainability

Balanced Local Economies

INNOVATION

IP

KNOWLEDGE

SKILLS

Equitable IP / Knowledge Trade

Limited Transfer

Materials and Products

GLOBALIZED

MANUFACTURING


12/13/2015

21

Global Industrialization Outlook

41

Move away from over-reliance on global “over trading”

….. avoiding wealth dilution

Move toward sustainable National Economic Sovereignty,

based on “localized” balanced trade and a value adding

industrial environment.

Improved National Management of currencies, capital,

resources, waste, Ecological issues and citizen welfare.

A move more toward state managed economies

and away from the failed Free Market ideology

NAFTA and other trade blocs

42

Our Biggest Threat…..

Unresponsive National Governments

12/13/2015

22

43





Cultural Mobility



Market and Commerce (unbalanced)

Economics (unplanned)

Politics

Age of Disruption


Age of Over-Supply

The New Management Buzz Word

“Disruption”

“Disruptive Innovation”

12/13/2015

23

45

Deloitte

Business Disruption…..

A radical change in an industry, business strategy, etc., especially involving

the introduction of a new product or service that creates or changes a

market:

Globalization and the rapid advance of technology are major causes

of Business disruption……

http://www2.deloitte.com/ca/en/pages/insights-and-issues/articles/future-

of-productivity-2015.html

46

Deloitte

Business Disruption…..

A radical change in an industry, business strategy, etc., especially involving

the introduction of a new product or service that creates or changes a market:

Globalization and the rapid advance of technology are major causes of

Business disruption.

http://www2.deloitte.com/ca/en/pages/insights-and-issues/articles/future-

of-productivity-2015.html

Yet another “threat warning” for Canadians

12/13/2015

24

48

The 5 Advanced Technologies

Driving Disruptive Innovation

49

Advanced manufacturing

technology process machinery

is included in this loose term

“Advanced Robotics”

“Some distraction

due to Low Cost Country

labor utilization”

The “Machine”

Doing the work for us!

12/13/2015

25

50

$BGlobal 3D Printer sales

Plastics

Metal

Composites

Food

Bones

Organs

?

Transforming how we make things!

www.additivemet.com

51

Doing the thinking for us!

12/13/2015

26

52

Connecting us all together!

53

It’s Globalization!

For good!

or

For bad?

12/13/2015

27



How should Quality Engineering and Management systems of the future

support the advanced manufacturing strategies to compete in the more

disruptive global business environment ?

Note:

Not everyone agrees that these disruptive outlooks or outcomes

are healthy toward our future prosperity or well being,.

……..…but we must be aware of them!!.



How should Quality Engineering and Management systems of the future

support the advanced manufacturing strategies to compete in the more

disruptive global business environment ?

Note:

Not everyone agrees that these disruptive outlooks or outcomes

are healthy toward our future prosperity or well being,.

……..…but we must be aware of them!!.

12/13/2015

28



What should we do?• Build Awareness

• Prepare for…

– Business market change

– Professional role change

– Personal life change

Agile/Flexible/Adaptable

Knowledge positive

Attitudinally robust



Quality Management methodology

Ensure business systems review the Juran Trilogy

12/13/2015

29

58

The Juran Trilogy.

ISO

Biased

Management

Traditional

Management

LEAN Thinking / 6 Sigma

PLANNING CONTROL IMPROVEMENT

Improve Quality Management Balance….

Focus far less on Procedures and Control

Focus more on Planning and Process Improvement

(Cost Of Poor Quality)



Quality Engineering approach• Embrace the disruptive environments by adding integrated real time value

• Avoid late serial screening/Auditing … provide early concurrent engagement

• Move from the organizational change anchor to the lever for improvement

Lead/Support….. Real Time, Early and Concurrent Improvement.

12/13/2015

30

60

CI

SIX SIGMA

LEAN

C I

The Continuous Improvement Environment

(ISO/COPQ/SPC)

TQM

Assist with the Integration of CI into the new disruptive environment

Only those with a strong CI journey

will thrive!

YOU NEED BOTH LEAN and 6 Sigma!

80%

20%

CI Implementation Process!

START HERE!

Selective projects!

Plus a strong Vision!

E3 Extreme Enterprise Efficiency

CI

http://www.leansixsigmaandbeyond.com/wp-content/uploads/2011/12/Picture14.jpg

http://www.leansixsigmaandbeyond.com/wp-content/uploads/2011/12/Picture14.jpg

http://leansixsigmaandbeyond.com/training/lean-six-sigma-master-black-belt-training-2-one-week-classes/

12/13/2015

31

62





Cultural Mobility

National boundaries

Technology

Market and Commerce

Economics

Politics

Age of Disruption

Age of Over-Supply

Ecological Issues

2016

Have a very happyand

DISRUPTIVENew Year!!

12/13/2015

32

END64

quality in disruption!party+2015...12/13/2015 1 tbm take back manufacturing quality in disruption!...

Documents