M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P NIST MEP The Manufacturing Extension Partnership and the Green Supplier Network Aimee Dobrzeniecki

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P April 2005 Hollings MEP 2 MEP stands for the Manufacturing Extension Partnership. MEP is a nationwide network of not-for-profit centers in over 350 locations, whose purpose is to provide manufacturers with the resources they need to succeed. The centers, serving all 50 States and Puerto Rico, are linked together through the Department of Commerce's National Institute of Standards and Technology (NIST). Centers are funded by federal, state, local and private resources to serve manufacturers. Commerce Department’s Manufacturing Extension Partnership

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P April 2005 Hollings MEP 3 MEP Network Results-Driven Approach. Continuously improving the efficiency and effectiveness of MEP Center delivery operations. Integrated Knowledge Network. Achieving economies of scale by collecting, sharing, and refining the network’s best information of customers, industries, and technologies reapplying that knowledge in new service delivery situations. Nationwide Capacity and Presence. Deploying uniform products and services across MEP centers to multiple companies which carry the 360vu service mark Strategic Alliances. Developing and fortifying strategic relationships at the local and national level, thereby enhancing MEP’s service capacity and value. A program of the U.S. Dept of Commerce

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P April 2005 Hollings MEP 4 MEP Success Story Tyco Electronics, Fuquay-Varina, North Carolina Tyco Electronics is a supplier of passive electronic components and a major producer of active components found in computers, telecommunications equipment, industrial machinery, aerospace and defense applications. Tyco turned to the North Carolina Industrial Extension Service of NC State University, a NIST MEP network affiliate, to implement a Six Sigma Project expediting order processing of kitted Energy Products (EP) products. The goal was to be more competitive in kitting EP products better, faster and cheaper. Results - -Reduced order processing time from 3 days to 2.5 days. - -Implemented barcode guns in material handling. - -Reduced receiving time and labor. - -Expected savings of $600,000 annually.

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P April 2005 Hollings MEP 5 MEP Success Story Gentex Corporation, Carbondale, Pennsylvania Gentex Corporation designs and manufactures advanced helmet systems for both ground and air troops. Gentex is a forward thinking firm focusing on new technologies and growth. To keep up with the demands of its clients, the company needed to implement lean enterprise strategic solutions. Gentex turned to the Northeastern Pennsylvania Industrial Resource Center, Inc. (NEPIRC), a NIST MEP network affiliate, for help with its lean enterprise efforts. Results - -Reduced manufacturing cycle time - -Improved fabrication, assembly, and warehousing processes - -Reduced cost of fabrication and assembly - -Helped ease the pain of change and lead Gentex down the road of continuous improvement

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P April 2005 Hollings MEP 6 MEP Success Story JDAM Supply Chain The Joint Direct Attack Munition (JDAM) Project illustrates the effectiveness of the NIST MEP national account services strategy. TechSolve, a NIST MEP network affiliate, assisted the U.S. Department of Defense (DOD) and The Boeing Company accelerate the manufacture of kits that turn “dumb bombs” into “smart bombs”. Leading the project with 9 JDAM suppliers, TechSolve and other MEP Centers partnered to increase capacity, improve on- time delivery rates, and improve product quality by employing Lean Concepts.

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P April 2005 Hollings MEP 7 MEP Success Story JDAM Supply Chain Benefits Boeing Improved part quality Increased ease of assembly Lower part cost Increased schedule confidence Shortened development cycle times Suppliers Improved supplier performance leading to increased business base New technology for legacy projects Industry Validation of the benefits of using discrete “above the shop floor” and “on the floor” lean practices U.S. Air Force Improved quality products at a lower cost

M A N U F A C T U R I N G E X T E N S I O N P A R T N E R S H I P April 2005 Hollings MEP 8 Combining Lean Enterprise and Six Sigma Concepts for Increased Success Goal – Reduce waste and increase process speed Focus – Bias for action/ Implementing Toyota tools Method – Concept training, Kaizen events, Value Stream Mapping Goal – Improve performance on Customer CTQs Focus – Use Define Measure Analyze Improve Control methodology to eliminate variation Method – Management engagement, 1% dedicated as Champions & Black Belts Six Sigma Lean Lean Speed Enables Six Sigma Quality (Faster Cycles of Experimentation/learning) Six Sigma Quality Enables Lean Speed (Fewer Defects Means Less Time Spent on Rework)

A program of the U.S. Dept of Commerce Green Suppliers Network An Innovative Industry-Government Collaboration

10 A program of the U.S.Dept of Commerce Green Suppliers Network Green Suppliers provides Lean & Clean technical assistance to manufacturers yielding improved competitiveness through environmental and economic benefits Lean & Clean approach expands the traditional Lean definition of waste from eliminating non-value added time, labor, money to include environmental wastes (energy, emissions) This dual approach aligns OEM, supplier and government interests Provides coordinating entity through supply chains to promote sustainability efforts (Financial and Environmental)

11 A program of the U.S.Dept of Commerce Lean & Clean Approach Clean Strives For... –Nature-friendly Substitutes –Optimized Material And Energy Efficiency –Waste Elimination –Air/Water Emission Reductions –Solid/ Hazardous Waste Reduction –Toxic Material Reduction Or Substitution –Efficient Packaging Lean Eliminates... –Defects –Overproduction –Waiting –Non-utilized People –Transportation –Inventory –Motion –Extra processing

12 A program of the U.S.Dept of Commerce Program Attributes Industry-Government Collaboration Lean & Environmental Technical Assistance OEM Drives Involvement Through Supply Chain Green Suppliers Partners With State & Regional Entities To Assemble The Best Technical Resources Quantifiable Environmental & Economic Metrics Cost Savings Remain With Suppliers OEMs Review Specifications Hindering Environmental Improvements Voluntary Pollution Prevention Initiative –Not Associated With Compliance, Unless Compliance Assistance is Requested

13 A program of the U.S.Dept of Commerce Case Study: GSN Aerospace Pilot Project HAR-CONN Chrome Company Metal finishing company, specializing in aerospace 55 employees and annual sales of $6,000,000 GSN Review assessed hard chrome plating line, which accounts for 15% of the company’s business This line contributes significantly to environmental impacts and generates a large amount of rework and rejects Review Results Identified $425,000 in potential annual savings in Lean and Clean opportunities Identified $77,750 in energy savings opportunities, a potential 16% reduction in energy bills Connecticut MEP is doing a follow-up project to reduce rework and reject

14 A program of the U.S.Dept of Commerce Case Study: GSN Aerospace Pilot Project Summit Corporation of America Metal finishing company, specializing in aerospace Company has 121 employees and annual sales of $18,000,000 GSN Review assessed nickel barrel plating line, which accounts for 3% of the company’s business This line contributes significantly to environmental impacts and generates a large amount of volume and rejects Review Results Identified $980,000 in potential annual savings in Lean and Clean opportunities Identified $95,000 in energy savings opportunities, a potential 8% reduction in energy bills

15 A program of the U.S.Dept of Commerce Summary Green Suppliers Improve Environmental & Business Performance GSN Provides Local Expertise For Follow-up Implementation Assistance MEP/360vu Data Collection Enables OEMs To See Aggregated Progress –OEMs & EPA View Aggregated Results Only –Data Collected & Managed By MEP/360vu Centers GSN Works With All OEMs to Help Their Suppliers Achieve Cost Savings, Eliminate Waste & Improve Competitiveness

16 Questions? Alex Folk National Institute of Standards and Technology (NIST) Aimee Dobrzeniecki National Institute of Standards and Technology (NIST)