The 6 th Manufacturing Summit at MIT: Revitalizing US Manufacturing to Capitalize on Innovation Jung-Hoon Chun Director Laboratory for Manufacturing and Productivity Massachusetts Institute of Technology Cambridge, MA October 27, 2011

- 2 - Laboratory for Manufacturing and Productivity Acknowledgement Professor Dave Hardt Dr. Brian Anthony LMP Support Staff

- 3 - Laboratory for Manufacturing and Productivity MIT’s Laboratory for Manufacturing and Productivity An interdepartmental laboratory within SoE Exploring frontiers in manufacturing Founded more than 30 years ago $6M per year

- 4 - Laboratory for Manufacturing and Productivity Achievements Six-axis MEMS NanoManipulators

- 5 - Laboratory for Manufacturing and Productivity Educational and Research Programs Systems - Factory - Supply chain - Information Environments - Sustainability - Energy Processes and equipment -Micro- and nano-scale processes - Precision engineering and control Systems-level design Educational Initiative - M. Eng. in Manufacturing - Mfg-related subjects

- 6 - Laboratory for Manufacturing and Productivity Manufacturing in the US Slow growth rate/declining economic sector Weak in consumer goods Strong in durable and high value added goods High productivity and innovation driven manufacturing

- 7 - Laboratory for Manufacturing and Productivity Germany France Sweden Japan USA Spain South Korea Poland Slovakia Romania Mexico China The Gulf in Auto Wages $58.50 $47.81 $38.63 $33.00 $31.62 $21.10 $8.83 $41.73 $8.40 $5.80 $3.30 $ % 54% 26% -1% 21% 38% 124% 6% 163% 130% 36% 76% 2009 autoworker costs/hourGain since 1999 * FOR DATA: EUROPEAN WORK COST INDEX, BLS, CENTER FOR AUTOMOTIVE RESEARCH

- 8 - Laboratory for Manufacturing and Productivity FoxconnOthers China Effect on Employment in 2009 Sony Intel Apple 800,000 Dell Microsoft HP * Data: Thompson Financial Extel Company Reports Headcount

- 9 - Laboratory for Manufacturing and Productivity Manufacturing in the US Slow growth rate/declining economic sector Weak in consumer goods Strong in durable and high value added goods High productivity and innovation driven manufacturing

Laboratory for Manufacturing and Productivity Input Area A Work Center A Output Area A Input Area B Work Center B Output Area B 1 5 P 3 M M 2 4 Kanban System: Feedback Loop

Laboratory for Manufacturing and Productivity Manufacture: Knowledge Multiplier Unit Manufacturing Processes Unit Manufacturing Processes Assembly and Joining Assembly and Joining Market Research/ Innovation Factory, Systems & Enterprise Conceptual Design Design for Manufacture

Laboratory for Manufacturing and Productivity Objective What are concrete action(s) we can take to revitalize US manufacturing to capitalize on innovation?

Laboratory for Manufacturing and Productivity Thank You!