Need for flexibility increases

1
SM- industry plays more important role

• Need for flexibility increases

2
Contents

• SM- industry plays the key role in the success of
  the European industry
• Employes the most people, has something new to
  offer
• SM- industry needs affordable technology good for
  their needs
• Often flexibility is the key word
• SM- industry needs good people
• Only the company which is able to acquire good
  people will thrive in global competition

3
Mass for masses

• Mass production industries go to where the mass
  market is
• Growing demand for local customer tailoring
• Global logistics solutions allow smaller batches
  to be manufactured more far away

4
The world is not the same anymore

• The next decade will wittness new distribution of
  work in the world
• Global competence centers for mass production
• Old large companies split smaller
• Small companies merge to form larger units
• SM- industry will grow as the biggest employer

5
Fast adoption to changes is the key issue

• SM- industry has natural KSF of transformation
  speed due to the company size if built in!
• Vital and developing contract manufacturer
  network is an ideal partner of large industry in
  the turbulence of demand
• In Finland SM- sector represents the majority of
  industry and there are lot of examples of success
  of the development investments amongst them

6
Affordable new technologies for SM- industry

• European quality standard is still a good KSF in
  global marketplace
• Quality is always tied in the process,
  organization and people who make it hard take
  away but easy to loose if not coninuously
  developed
• SM- industry needs applicable technological
  solutions
• Flexibility of change in its different aspects
  is always an issue of creating competitive
  advantages

7
Developing machine technology provide new
opportunities for SM- industry

• Production machine development try to utilize
  electronics, sw- technologies, new designs to
  get flexibility out of their equipment

8
ICT is paving the road with its applications

• IT technology offers a lot of instruments to make
  necessary networking easier
• Simple tools are available to simulate and
  evaluate processies and their feasibility

9

• In most cases the bottleneck is skilled people

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Only those companies will thrive who can get
good people

• Where are they?
• How to get them?

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Small companies are pressed to produce not to
develop!

• Everybody in productive work
• No non-producing individuals
• Keep overheads down
• Be competitive, now!
• Dont worry the future
• Owners effort is often the only driver to be
  better
• The bureaucracy in front of any public or
  organized help is a big barrier of many
  initiatives
• Consulting forces hunt for big money
• Small companies doesnt have it

12
Schools/ researcers/ graduate workers/
consultants represent potential who could help

• Owned by schools
• Opereted by schools
• Supported by manufacturer

13
A great opportunity to Manufuture to take
initiative in creating new approaches

• There is a gap for new channels between know-how
  of research and know-how of the practise in SM
  industry
• Image of traditional industries need to be
  polished by marketing new technologies, new
  working environment
• Legislation should take small industry
  limitations better into account when they need
  help
• New ways of compensating development costs must
  be found to help those who really want to be
  better

14
There are 8760 production hours available in a
year

• Much less than 2000 of them are in productive use
  in average in SM-industry
• By the use of this potential expensive machinery
  could use its power and turn the eastbound
  trends back to Europe again.

15
We all are in the same boat. How to make the
industry to attract our children in the future is
the key issue. How we make the industry to look
like today, is the solution.
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www.fastems.com
Juhani Rantalainen Email juhani.rantalainen_at_faste
ms.com Tel. [phone]