NGM Study findings on human-capital strategies and practices and what it takes to make them world-class

Manufacturers recognize the importance of human-capital acquisition, development, and retention but few have the systems in place to achieve world-class status. Of the manufacturers surveyed, only 30% reported they are near or at world-class human-capital management.

Three elements are necessary in human-capital management:
• Company-specific strategy with full-functional involvement and buy-in
• Talent and talent-development programs
• Capable business systems and equipment

NGM Study findings on the results of innovation and what characterizes world-class innovators

The study found that manufacturers may not be getting the most out of their customer-focused innovation. Among all manufacturers surveyed, 70% commercialized less than 25% of their R&D expenses. Those manufacturers who identified themselves as at or near world-class innovation, however, enjoyed more return on their R&D investment both in new products and greater profits. Seventy percent of these manufacturers derived more than 5% of sales from products introduced in the past three years.

How today's manufacturers are positioned to develop new products and services that meet customers’ needs faster than the competition.

The NGM Study found that four out of five manufacturers recognize the importance of customer-focused innovation. For world class innovation, however, manufacturers need to do more than recognize its importance. One area of focus was the innovation strategies and practices currently implemented by American manufacturers.

Overall, manufacturers reported their progress toward world-class customer-focused innovation has remained largely unchanged from 2009. Most manufacturers are succeeding in identifying talent and implementing talent-development strategies, but other areas of their innovation strategy need improvement.

NGM Survey results for issues related to profitability, leadership, and investments

A survey released by the Illinois Manufacturing Extension Center and its trade association, the American Small Manufacturers Coalition, finds that most of today’s manufacturers are profitable, but significant challenges may lie ahead.  These challenges include aging executives and low investment in capital equipment and information technologies, which could leave manufacturers behind in the race to innovate.

More than two-thirds of manufacturers surveyed are led by chief executives over 50 and 27% are led by an executive over 60. As executives prepare to retire, it is important that they create a planned succession so the business can continue to operate smoothly. Some of the consequences of ill-planned successions can be the forced sale of the business, often for a low price, or chaos when the current leader retires. A properly planned succession, however, can allow the current leader to retire knowing the company will be left in qualified hands.

An Overview of the Next Generation Manufacturing Survey results

Today, the Illinois Manufacturing Extension Center, along with its trade association, the American Small Manufacturers Coalition, released the results of its 2011 Next Generation Manufacturing (NGM) Study, identifying key trends affecting the industry and steps U.S. manufacturers can take now to be successful in the next generation.

The study, conducted by the Manufacturing Performance Institute, finds that this is a critical point in time for U.S. manufacturing, and manufacturers must assess whether they have the workforce, business systems, equipment and strategies in place to successfully compete in the future. While external factors, like the economic downturn present challenges, manufacturers can remain competitive by focusing on six strategies assessed by the NGM Study as a blueprint for success.

Do you know about the free service for U.S. industry to track manufactured product requirements around the world?

This web-based e-mail alert service offers U.S. entities (citizens, industries, organizations) an opportunity to review and comment on proposed foreign technical regulations that can affect their businesses and their access to international markets.

Sign up at www.nist.gov/notifyus/.

Join us for this one-of-a-kind event.

Tuesday, Oct 18—Wednesday, Oct 19

Illinois Institute of Technology Campus, Chicago, IL

The potential of smart grid technology to spur business innovation, create jobs and benefit consumers throughout the Midwest will be the focus of a major conference in Chicago Oct. 18-19 organized by a consortium of energy, environmental and policy organizations.

Register Now!

During the week of August 12th I traveled to Budapest Hungary to be a presenter at the first annual American Gear Manufacturing Association’s International conference.   Founded in 1916, AGMA is a voluntary association of companies with a direct interest in the design, manufacture, and application of gears, couplings and related power transmission components equipment.  Of its 430 members, approximately 100 are actually located outside the United States.

The three day conference was designed to provide gear manufacturing leaders with intelligence on new market opportunities and strategies to improve business development.  In total, representatives from 25 gear manufacturing companies from around the world participated:  thirteen from the United States; twelve from Europe, Asia and Australia. 

Its Transition in the Industry...Which One Do I Use?

Most companies today are implementing the fundamentals, principles and tools of a process that has been developed over the course of many years by a leading global manufacturer:  the Toyota Production System.

As we all know, Lean Manufacturing is the process of utilizing the minimum amount of people, inventory, supplies, equipment and tools absolutely necessary to meet customer requirements.  It is such a powerful methodology that it has transitioned from its manufacturing roots into other industries (Lean Healthcare, Lean Thinking, Lean Office, etc.). Through this industrial transformation, Total Productive Maintenance (TPM ), one of the most important Lean tools in the industry, has transformed accordingly.

Crystal Lake’s Alpha Star Tool and Mold Gets International Certification

In a record five months, a family-owned Crystal Lake tool and mold maker obtained ISO 9001:2008 registration which will allow it to diversify its customer base and do business with major corporations.

Alpha Star Tool and Mold, Inc. is a manufacturer of high-end precision tooling and molds.  According to Vice President Matt Thurow, the business started by his parents in 1988 is a “well-oiled machine, highly respected in its industry.”  Like other small manufacturers fighting to adapt to the economic downturn, Alpha Star knew that building a diversified customer base, from consumer goods to laboratory equipment to aerospace and energy products, was essential.  To do this they needed the credibility only an ISO registration can bring.