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Presentedby:
CaliforniaManufacturingTechnologyCenter(CMTC)
LeanManufacturing
LAIPlenaryConference
Overview
HistoricalPerspective
IndustryConsolidation
ViewfromOEMs
Currenttrends
DoD&R&DBudgetsremainflat
Employment
FutureTechnologyTrends
Thepoweroftheinternet
Resources
SummaryandUltimateGoal
Q&A
HistoricalPerspective IndustryConsolidations&Mergers ContinuesataLessorPace
Mid80’stomid90’s37became4
Mid90’stopresentnoticeableincreaseinM&Aactivitywithinsupplychains
AstheConsolidationContinues Primes&OEMsHavenewChallenges
Notallsupplierspossessresourcesandcapabilitiestoundertakemajorimprovements(sixsigma,leanmanufacturing,continuousimprovement)
Notallsuppliershaveabilitytoattract&retainhighcaliberpeoplewhounderstandprocesscontrol(CpK&6Sigma)
Demographics,theagingworkforcecreates“KnowledgeManagement”challenges
EffectiveCommunicationlinksbetweensub-tiersuppliersandendusersbecomeincreasinglyimportant
Earlyinvolvementinthedesign&developmentphases,andteaming“beyond”theshopfloorbecomemorecrucial
CurrentTrends
Defensebudgetwillgrowatabout4%,withammunitionandaircraftleadingtheincrease
R&DBudgetswillremainflatforcingmorePrime/Suppliercollaboration
Supplierconsolidationwillcontinueasaresultofmergers
Asprimesshiftto“lean”practices,supplierswillbeaskedtomanufacturemoremajorsub-assembliesandlesspieceparts
CurrentTrends
Continued
OEMswillcontinuetooutsourcemanufacturing
JITdeliveriesinsupportofPOUdemandwillbecomemoreprevalentinordertoreduceinventoryandcarryingcosts
OEMswillshiftto“assemble,test,andship”model
Suppliersandcustomerswillteam“beyond”theshopfloortodesignanddevelopnextgenerationproductsusingtheInternettocreateVirtualProductDesignandInnovation
DoDProcurementGrowingat4%
($Mil)
AerospaceR&DFundingRemainsFlat
LessR&Dwillcreatemorecollaborationbetweenprimesandsuppliers
AerospaceisImportanttotheUS
AccountsforMajorityofExports
$Billion
DataSource:CaliforniaEmploymentDevelopmentDepartment.
EmploymentInSouthernCalifornia