Manufacturing Network Development A Center of Excellence

1
Manufacturing Network DevelopmentA Center of
Excellence

• Robb McColl, Cluster Manager
• Economic Development Edmonton
• March 2004

2
Clusters Theory Defined

• Michael Porter and Cluster Theory
• Clusters consist of co-located and linked
  industries, government, academia, finance and
  institutions for collaboration.
• Cluster initiatives are organized efforts to
  increase the growth and competitiveness of
  clusters within a region, involving cluster
  firms, government and/or the research com
  munity.

3
Cluster Initiative Objectives(Listed in order of
frequency, from the Greenbook, Michael Porter,
Sept 2003)
Common Objectives

• Promote expansion of existing firms
• Facilitate higher innovativeness
• Attract new firms and talent to region
• Promote exports from cluster
• Assemble market intelligence
• Improve cluster firms cluster awareness
• Provide technical training
• Diffuse technology within the cluster
• Lobby government for infrastructure
• Lobby for subsidies
• Coordinate purchasing
• Establish technical standards
• Reduce competition in the cluster

• Foster networks among people
• Establish networks among firms
• Promote innovation, new technologies
• Create brand for region
• Promote formation of spin-offs
• Provide management training
• Enhance production processes
• Provide incubator services
• Study and analyze the cluster
• Conduct private infrastructure projects
• Produce reports about the cluster

Rare Objectives
4
CIs The Edmonton Example

• 2000 Greater Edmonton Competitiveness Strategy
• A regional approach
• Focus on 9 Clusters 11 Flagships

• Clusters
• Advanced Manufacturing
• Agri-Foods Forestry
• Biotech
• Engineering Tech Services
• Infomedia
• Oil Gas
• Transportation and Logistics
• Nanotechnology Microsystems
• Tourism

5
Cluster Development - The Edmonton Example

• GECS Early Implementation
• Large awareness meeting events
• Recruitment of interest
• Where to next?
• Communication and definitions
• Search for common objectives
• Refocusing cluster networks

6
Cluster Development - The Edmonton Example

• Advanced Manufacturing Case Study
• Advanced definition
• Diverse sector, difficult to define the cluster
• Difficult initially to find commonalities
• Met with individual companies
• Built on each company visit with information from
  prior visits
• First meeting was set!

7
First Cluster Network MeetingMay 2002

• 12 Major Manufacturers at the table
• Discussed competitiveness issues affecting
  manufacturing today
• Established ground rules
• Emerging synergies and trust building from the
  very first meeting
• Established as the Manufacturing Cluster
  Steering Committee

8
Key Outcomes to Date

• Issues addressed
• Best practices shared
• Alliances formed
• New processes adopted
• lean consortiums formed (sub-groups)
• Cross cluster synergies (ie plastics and
  agri-food connections)
• Stronger informal manufacturing network of
  contacts (b2b connections)

9
Additional Cluster Networks Formed

• Agri-Food CEO Club
• Agri-Food Entrepreneurs Club
• Transportation Logistics Cluster Network
• 2nd Manufacturing Network
• Plastics Cluster Network

10
Current Issues for Manufacturers

• Struggles against a high Canadian dollar
• A fragile, but recovering US economy
• A weakened relationship with the US (our largest
  trading partner)
• Fierce competition arising out of China and the
  potential of further devaluing of the Yuen

11
Additional Challenges for Manufacturers

• Rapidly changing technologies
• Limited RD resources in Canada
• Global competitive environment
• Demand for productivity efficiencies
• Innovative and adaptable workforce
• Power demand and cost issues
• Eco-efficiencies

12
Initiatives for Manufacturing Focus

• Continue to develop a collaborative culture in
  which to strengthen the cluster
• Improve the manufacturing knowledge base with
  respect to processes technologies and equipment
  to enhance the operations of the manufacturing
  cluster firms

13
Where To From Here?

• Key Issues Remain
• Decreasing Government resources to industry, both
  in dollar and manpower resources
• Decreasing resources to industry associations
• However, many bits and pieces of
  resources/assistance to industry through various
  levels of Government, industry associations, etc.
  (services scattered and fragmented)
• Knowledge demands continue to increase

14
Next Steps Manufacturing Processing Cluster

• Establishment of a Manufacturing Network
  Centre of Excellence
• With a Purpose To
• Enhance competitiveness
• Increase production efficiencies
• Retain our manufacturing processing base
• Develop more value added products
• Develop our capacity for innovation
• Develop new markets

15
Manufacturing Network A Centre of Excellence

• A Network for
• Industry, associations and related stakeholders
  collaboration and greater overall access
• Specific connections to related government and
  educational institutions
• Combined services, programs, industry
  information, etc. (one point of access)
• B2B connections
• Employment connections
• Sourcing opportunities

16
Manufacturing Network

• Key Linkages for Research Development
  (examples)
• U of A
• NAIT
• NRC/IRAP
• Colleges (eg Lakeland)
• U of C
• SAIT
• ARC
• Alberta Bioplastics Network
• Leduc Nisku Food Processing Centre/Incubator

17
Manufacturing Network

• Additional Linkages for
• Skills Development
• Government Access
• Export Market Development
• Access to Financial Programs
• Policy/Advocacy Connections
• Sectoral Expertise
• Regional Marketing Strategy

18
Manufacturing Network

• Geared with a focus on key processes and related
  competencies within manufacturing such as
• Preparation and production of materials, alloys
  and blends
• Fabrication processes of components of single or
  multiple materials
• Assembly and joining processes
• Inspection, monitoring and adaptive control

19
Manufacturing Network

• Key processes and competencies continued
• Packaging and material handling
• Transportation, storage and distribution
• Design, modeling and virtual manufacturing
• Intelligent and expert systems

20
Manufacturing Network

• By using a collaborative approach, strengthen the
  health and growth of our firms to better assist
  in the further development of emerging
  manufacturing technologies, such as
• Laser and electro processing systems
• Micro-nano fabrication systems
• Semi-solid and solid state processing systems

21
Manufacturing Network

• Emerging manufacturing technologies continued
• Precision freeform fabrication systems for rapid
  tooling and prototyping
• Fusion deposition, joining and thermal processing
  systems
• Integrated and reconfigurable systems
• Selective mixing and separation systems

22
Manufacturing Network

• Emerging manufacturing technologies continued
• Virtual manufacturing and optimization
• Expert and intelligent systems
• Smart structures and real time sensing and
  control in advanced machinery

23
Industry Steering Committee
Research Community
Government
Educational Institutions
Financial Institutions
24
Manufacturing Network

• Institutions for Collaboration - Industry
  Associations (discussions to begin with..)
• The Canadian Manufacturers and Exporters Alliance
• The Canadian Plastics Industry Association
• The Forest Industry Suppliers and Loggers
  Association
• Alberta Food Processors Association

25
Manufacturing Network

• Next Steps
• Establish an Industry Board of Directors
• Meet with key stakeholders to present concept and
  establish working agreements
• Government agencies industry associations
  educational Institutions research agencies and
  related stakeholders
• Develop Detailed Strategic Plan with Stakeholders
  to establish clear objectives, process and
  performance measures