Research & Advanced Engineering Professional Science Masters (PSM) Graduates and U.S. Economic Development Philip M. Tuchinsky, Ph.D. Technical Expert, Ford Motor Company Industry Advisor, Michigan State University PSM in Industrial Mathematics January 10, 2005

Research & Advanced Engineering 2 Topics Professional Science Masters Degrees – their potential What I do / Analytics a recognized need Ford’s recruitment process Elsewhere: Clear demand for PSM grads Workforce development policy and PSM’s

Research & Advanced Engineering 3 PSM’s – Immense Potential Excellent technical depth and developed leadership skills are hard to find in one person, but essential in many societal roles. That number is growing. PSM’s increase the quality of leadership wherever technical + leadership go together. Expectations will grow – PSM’s will be gateway credentials – this is a great achievement. PSM’s today – a young educational movement; Tomorrow – a quiet revolution in American commerce and society.

Research & Advanced Engineering 4 Ford Recognizes Need for Analytics My applied research provides analytics:  Data mining and math modeling for internal “customers” in Ford business operations.  Department pioneered business analytics in mid ’90s, credited with substantial benefits for Ford. Staff: 17 today.  We have much more demand for help than we can satisfy. Other Ford groups and projects are spreading analytics. Ford Motor Credit Corp. CFO David Cosper described MSU Industrial Mathematics PSM students as “differently wired minds” to be salted throughout business operations. Future: MSIM, other math PSM grads  Ford analysts

Research & Advanced Engineering 5 Data-Driven Business? “ Nimble ” DATA “ Profitable ”

Research & Advanced Engineering 6 Yes, Data-Driven! Analytics To The Rescue “ Profitable ” “Nimble” DATA

Research & Advanced Engineering 7 Ford Recruitment Process (USA) Ford centralizes recruitment in Human Resources.  Apply via web site  Handles direct hires, Ford College Graduate program hires, internships… everything.  Business functions (Product Development, Finance, etc.) specify needs by degree to HR and work with HR to hire.  Department Managers hire – key to PSM grad placement. Business cycle effects:  Hiring shrank in ‘02 & ‘03 vs. 2001; partly restored in ‘04.  Direct hires outnumber new grads, reversing trend of late ’90s  very limited hiring on campuses at moment. Immigration status – the “green card”.  Right to work in USA essential even for internships.

Research & Advanced Engineering 8 Elsewhere: Clear Demand for PSM Grads Many employers are ready for PSM’s today:  Internships and sponsored projects bring PSM students to employers’ attention. Successful contacts  hires.  MSU MSIM program graduated 4 th class in ‘04. Placements:  four graduates with a Michigan actuarial firm;  others with large industrial firms, large insurance companies and smaller companies (including a non-profit & a university).  About 80% choose employment, 20% Ph.D. programs.  Almost all placed in Great Lakes states, majority in Michigan.  Starting salaries average in the mid $50’s. Some companies sponsor immigrants for green cards as part of their business plans. Industry / business advisors can assist placement.

Research & Advanced Engineering 9 Workforce Development Policy & PSM’s Nurture PSM programs and generate graduates:  Encourage commitment to PSMs by public universities, despite severe financial stress in higher education.  Address support for PSM students effectively.  Encourage / support internships and sponsored projects as inexpensive entry points for employer / student links. Help business and industry benefit from PSM grads:  Present PSM programs in economic development vision.  Help universities involve employers. Apply the fundraiser’s maxim: “The biggest reason that industry contacts fail to help a PSM program is that they are not asked!”