the future of manufacturing with joe barkai

The Future of Manufacturing

Joe Barkai

ACE 2013April 30, 2013

Out of the Recession (?)

Sources: Markit Group Holdings Ltd., 2013ISM, 2013

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30

35

40

45

50

55

60

65

PMI

Jan 2000 - Mar 2013

Out of the Recession (?)

Sources: Markit Group Holdings Ltd., 2013ISM, 2013

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Optimism?Uncertainty!

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Rethinking Priorities

0% 10% 20% 30% 40% 50% 60% 70%

Manufacturing footprint and sourcing strategies

Manufacturing process innovation

New product innovation

New/enhanced customer services

Supply chain collaboration and transparency

Transactions/joint venture to acquire access to new markets, technology or talent

Next 1-2 years

Past 1-2 years

Which of the following elements of your operations will contribute significantly to overall profitability?

Source: Economist Intelligence Survey, 2012

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Let’s Innovate Innovation is expensive Innovation is risky Innovation takes time to make a difference Innovation may not solve the problem anyway

WasteDifferentiationNeutralizationProductivity

Source: Geoffrey Moore, Dealing with Darwin Joe Barkai6

0

20

40

60

80

100

120

140

160

180

200

Jul-01

Oct-

01

Jan-0

2

Apr-

02

Jul-02

Oct-

02

Jan-0

3

Apr-

03

Jul-03

Oct-

03

Jan-0

4

Apr-

04

Jul-04

Oct-

04

Jan-0

5

Apr-

05

Jul-05

Oct-

05

Jan-0

6

Apr-

06

Jul-06

Oct-

06

Jan-0

7

Apr-

07

Jul-07

Oct-

07

The Tipping Point

Source: Adapted from Sketching User Experience (Buxton, 2007), TechDigest.tv, Yahoo! Finance

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“From image to implant” “Zero spare part inventories” “Minimal” supply chains

Manufacturing Renaissance?

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The Wonderful World of 3D Printing

The Wonderful World of 3D Printing

Quality Reliability Safety Regulations IP protection Traceability

The Path to Industrialization

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Global markets “Design anywhere / build anywhere / sell &

support anywhere” Global supply chains

Global Manufacturing Imperatives

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Not Much Has Changed In A 100 Years

Leverage Economies of Scale

Automation

CraftsmanshipMass

ProductionLean, TPS Flexible

Manufacturing

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Harmonize different manufacturing plants: products, processes, resources

Design for capabilities

The Global Virtual Plant Floor

Demand Forecasting

Design for Capabilities

Plan for Capacity

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Modularity and Platforms

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Collaborating on Innovation

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Competitors (e.g. to reduce costs, benefit from …

Academic institutions

Government/Public-sector organizations

Technology providers (e.g. IT or plant specialist)

Product companies (e.g. to provide a combined …

Supplier (e.g. to cooperate on product design)

Key Customers(e.g. for bespoke product development)

Much greater/ greater collaboration Same level ofcollaboration

Much less/lesscollaboration

No collaboration

Source: Economist Intelligence Survey, 2012

Do you intend to collaborate in innovation more or less with the following external groups over the next 12 to 24 months?

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The ‘ME’ economy From products to performance Dynamic innovation-networks

Evolution of New Business Models

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The ‘ME’ economy From products to performance Dynamic innovation-networks

Evolution of New Business Models

Design DeliverMakeInnovate

Customer as Designer

Mfg. Supplier

Design Suppliers

Manufacturer

Local Plant

3rd Party

Service

Provider

Sales

(Products &

Service

Customer

Customer as

Manufacturer

Design Collaboration

Embe

dded

Com

plia

nce

Su

pp

lier

collab

ora

tion

Predictive Maintenance

Cus

tom

er-

cent

ric

serv

ice

Factory

Visibility

Everything and Everyone is Connected

Service

Customer Intimacy

Design

Collaboration

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The Digital Thread Enterprise PLM/PDM strategy Foundation for data quality and analytics Multidisciplinary optimization Leverage emerging IT models

Cloud Mobility Social business Big data and analytics

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• Multiple datastores• Fragmented processes• “Localized” / domain specific

analytics

Connect, Analyze,

Predict and Act

• Outsourcing design• Collaborative design

Increase Value

Reduce Waste

• Limited visualization• Cloud• Mobile-enabled

Reduce Complexity

(&Complication)

Strategy for Success

• Single virtual data model• End-to-end multidisciplinary

visibility • Predictive analysis• Context sensitive, smart action

• Design for performance• Customer centric• Modular & reusable design &

processes• “Glocal” manufacturing

• User /context aware decision making

• Context sensitive, smarter action

• Visual decision making• Social-embedded

FROM TO

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Stay In Touch(and request presentation slides)

@JoeBarkai

jbarkai@comcast.com