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Spring 2012 Session B

Manufacturing in Aerospace

Manufacturing is a dynamic and changing industry. In this presentation, we'll explore and analyze the current state of manufacturing and its potential future direction. To this end, several manufacturing indicators are listed below to paint a picture. These indicators were chosen to represent a current snapshot of different dimensions of the industry and its changing factors.

**Where we stand in Manufacturing** U.S. manufacturing is in crisis, with almost 6 million jobs lost and 42,000 factories closed over the last decade. Even worse, we are losing know-how and ultimately control over our future. While the U.S. retains important strengths, U.S. manufacturing competitiveness is slipping rapidly. There is no reason to resign ourselves to defeat or to sugarcoat the challenges we face. We possess the tools, talent, and resources to revive manufacturing. But to do so we need a national strategy for manufacturing renewal. This is the message of the ITIF report called, “The Case for a National Manufacturing Strategy for the United States.” I will cover the 5 key areas that need to be addressed.

The Aging work force
The future of manufacturing will be tied to the quantity and quality of its workforce. Yet, skill shortages due to the mass retirement of older workers could define the near future of the manufacturing sector, according to a new report by the Sloan Center on Aging & Work. Top skills reportedly in short supply include: Management skills (37.4%), legal skills (33.3%), sales/marketing skills (28.2%), operations skills (24.4%), technical computer skills (22.1%), and basic literacy in writing and math (18.9%). However, despite this impending shortage, a lower percentage of manufacturers have analyzed the projected retirement rates compared to employers in other industries. This report has data that is very useful in helping manufacturers understand their overall approach to talent management and specifically how to adapt to the aging workforce and what implications it has on their future workforce.

OUTSOURCING RATIONALE 1) Organizationally-driven reasons nhance effectiveness by focusing on what you do best 2) Increase flexibility to meet changing business conditions, demand for products and services and technologies 3) Transform the organization Increase product and service value, customer satisfaction, and share-holder value 4) Improve management and control 5) Reduce investments in assets and fee up these resources for other Purposes

Drawbacks for outsourcing
Underestimation of communication costs Communication when working with sub-contractors Inadequate governance You need an in-house steering committee to oversee the work of the supplier. Loss of control over key information, crucial knowledge and technical staff. The technical staff, their know-how, and the documentation they produce are controlled by an independent supplier Loss of leadership in business relations Outsourcing relations have the tendency to expand. Your business continuit How will your continue your business — in particular after switching to another sub-contractor or bringing the production back in-house?

=== **The Five Initiatives** Objective is to achieve profitable growth, using four pillars of organic growth. The pillars include doing a superb job for our customers every day; superior sales and marketing organization; globalization; and robust, funded technology roadmaps for new products and services. ===

Sustainability
broad application of Lean & Six Sigma tools against a construct of: Standardized work Rapid problem solving Continuous improvement Knowledge sharing Organization Development ensures sustainability through: Specificroles & responsibilities for leaders High-performance management systems Enabling structure The X Factor in Aerospace Manufacturing In short, the changing character of the skilled workforce will present a major challenge to aerospace OEMs and their supply chains in the years ahead. Fewer trained job candidates and multi-year order backlogs are adding to the stress; so too is the nature of defense contracts that mandate U.S. citizenship for aerospace employees in order to receive security clearance. The growing need for qualified employees will require a multi-faceted response of competitive wages and benefits for new workers, strong mentoring and job training programs, strategic outsourcing, and worker retention efforts in the years and decades ahead.

G:\ASU TEM 194 Itro to technolgy\Video 11.wmvManufacturing in AerosapceManufacturing in Aerospace