1. 21 st Century Workforce Initiative Quarterly Meeting March 29, 2007 Brenda C. Njiwaji, Director Bureau of Workforce Programs Michigan Department of Labor & Economic Growth

2. Agenda I.Introduction and Context Brenda C. Njiwaji II.Great Lakes Trade Adjustment Larry Molnar Assistance Center (GLTAAC) III.Michigan Manufacturing Bruce Knapp Technology Center Michael Vincent IV. South Central Michigan Works! Michael Polzin Business Solutions Professional Donna Winthrop V.DLEG Bureau of Labor Market Information & Strategic Initiatives Rick Waclawek VI. Rapid Response Lloyd Conway VII. Closing Remarks Brenda C. Njiwaji

3. Automotive Manufacturing Assistance Program (AMAP) Growth Sector Analysis:Jobs of the Future EDA Community Adjustment Economic Recovery

4. Automotive Manufacturing Assistance Program (AMAP) Mission: Assist Michigan automotive suppliers adjusting to change in the automotive industry Phase I: Application Process takes 1-3 days, and there is no charge for this service Phase II: Diagnostic Analysis Adjustment Plan begins 2-3 weeks after start, AMAP may be able to pay up 75% of costs Phase III: Implementation lasts up to 1 year, AMAP maybe able to assist with some of the project(s) costs.

5. Growth Sector Analysis: Jobs of the Future A two-part process, intended to identify industries that have future growth potential throughout the nation, and how these findings apply in Michigan. Part I: Examine the large data pool throughout the nation, analyzing industries within the identified growth/decline sectors, as well as completing trend analysis Part II: Identify Michigan companies that fall into national growth sectors, completing analysis of these companies which classifies key components that are applicable to the scope of Michigan. This research will facilitate the development of workforce training and curriculum, as well as effective job placement mechanisms, and assessment of existing skill set.

6. EDA Community Adjustment Economic Recovery This two part process works to offer an “early warning” to staff and support systems, as well as providing a response process for an actual closing. Early Warning System: Identification of “at-risk” areas through continuous monitoring and economic trend analysis, with referrals to AMAP, if applicable, and notification to appropriate responders at the local, state, and federal levels. Plant Closing Response System: Upon announcement of a closure, this program engages the appropriate local, state, and federal response networks, assists in assembling a community strategy team and in developing and implementing a strategic plan, and monitoring the performance metrics of the interventions.

7. Michigan Manufacturing Technology Center Mike Vincent 734-451-4203 www.mmtc.org The Michigan Manufacturing Technology Center (MMTC) is a not-for- profit organization established in 1981 as a NIST-Manufacturing Technology Center. We were created for the sole purpose of serving Michigan’s small and midsize manufacturers. MMTC delivers training and consulting for: LEAN training and implementation Six Sigma certification programs Quality and Environmental Management Cost Management Systems Market Diversification Performance Benchmarking

8. What is MMTC? A Public/Private Network Not-for-profit corporation, with 56 employees statewide Established in 1981 with support from DOC/NIST’s Manufacturing Extension Partnership and the State of Michigan (now, MEDC) Funding model: 1/3 Federal, 1/3 State, 1/3 customers Service model: ½ staff, ½ private sector consultants Focus is to improve the competitiveness of Michigan manufacturers with fewer than 500 employees (sweet spot is 25-250) Headquartered in Plymouth, with regional offices in Grand Rapids, Flint, Saginaw, Traverse City, and Marquette More than 600 customers do formal projects each year

9. MMTC’s Mission To enhance the global competitiveness of small and midsize manufacturers. MMTC’s Goal To make a significant IMPACT on our customers, that results in increased profits by reducing costs, increasing sales and creating new jobs.

10. Michigan MEP Statewide System MMTC - Upper Peninsula 394 small manufacturers Primary Industry: Wood working Ruth Solinski, MMTC Marquette MMTC - Northwest 627 small manufacturers Primary Industry: Machine Tool Rich Wolin, MMTC Traverse City MMTC - West 3876 small manufacturers Primary Industry: Office Furniture Jim Ross, MMTC Grand Rapids MMTC - Saginaw Valley/Northeast 1112 small manufacturers Primary Industry: Automotive Supply Robert Schooks, MMTC MMTC - Southeast 8192 small manufacturers Primary Industry: Automotive Bruce Knapp, MMTC MMTC SEMI & Central University Center Flint MMTC – Genesee Valley 580 small manufacturers Primary Industry: Automotive Marlene Nicol, MMTC 14,781 Michigan Small Manufacturers

11. MMTC: Good for Michigan Employers, Good for Michigan MMTC clients will be interviewed by an independent, third-party survey firm (Synovate) with one year after their project has been completed. Results reported by NIST recently: MMTC’s impact goes beyond individual manufacturing customers. The sales improvements, cost savings, and jobs created and retained help to enhance Michigan’s strong industrial base and employment.

12. MMTC Experience & Credentials MMTC’s delivery staff work together on a daily basis, sharing best practices to continuously improve the services we offer to our customers. MMTC professionals average 20 years experience in their area of expertise. We’ve combined hands-on experience and education, with industry-proven techniques and a wealth of knowledge gathered from working with hundreds of companies.

14. From Surviving to Thriving Program A new program offered by the Michigan Department of Labor and Economic Growth and Michigan Manufacturing Technology Center The MMTC can provide training and consulting assistance to Michigan manufacturers adversely effected by the current economic environment and cutbacks from their major customers As part of the program grant, up to 75% of the costs for training and consulting assistance may be paid by grant funds.

15. Market Diversification and Performance Excellence in Michigan Manufacturers From Surviving to Thriving Program

16. Market Diversification

17. What is Market Diversification? We will focus on three ways to increase sales and profits: 1.New business with existing customers Managing customer data, determining product and quote profitability 2.New customers in current markets Identifying customer types and targeting similar prospects 3.New customers in new markets Evaluating and prioritizing new markets, finding new prospects Diversification can help offset cyclical markets and provide opportunities to improve margins.

18. Targeting new customer bases The purpose of the customized new market study is to move from this scenario… To this…

19. LEAN Business Solutions

20. What is Lean? A systematic approach applied to the value chain (business process) aimed at streamlining these processes by: Eliminating WASTE utilizing Lean tools and techniques that have been proven to result in: Improved Information Flow Improved Material Flow Improved Efficiency Increased Capacity Reduced Lead Time Improved Productivity Increased Cash Flow

21. Six Sigma

22. Six Sigma is a: Statistical Measure Business Philosophy Problem Solving Methodology (DMAIC) What is Six Sigma?

23. Quality Management Systems

24. ISO 9001:2000 Generic Generic 5 Clauses5 Clauses Process based systemProcess based system AS 9100 OEM OEM aerospace requirement ISO/TS 16949 ISO/TS 16949 (For “Big Three” plus European Automotive (For “Big Three” plus European Automotive Parts and Service 1 st Tier Suppliers) Parts and Service 1 st Tier Suppliers) All of the ISO 9001:2000 requirementsAll of the ISO 9001:2000 requirements Expanded Elements For AutomotiveExpanded Elements For Automotive ISO 14001 ISO 14001 Environmental System Environmental System EMS “green” ISO 13485 For Medical Device Manufacturer For Medical Device Manufacturer TL 9000 For telecommunications industry suppliers For telecommunications industry suppliers

25. Activity-Based Costing

26. What is Activity-Based Costing? An analysis of the activities in your organization and how much each activity actually costs.

27. What we ask of you … if you are interested Take a copy of the performance benchmarking and customer survey Complete and send back your assessment survey When we receive your completed assessment survey, we will: –Determine eligibility for grant $$$ –Create a formal proposal –Contact you to discuss timing Please remember that grant funds are limited, and will be distributed on a first-come, first-serve basis to qualified companies

28. How to access assistance MMTC – SEMI Michigan Manufacturing Technology Center 47911 Halyard Plymouth, MI 48170 Mike Vincent Phone: 888-414-6682 ext. 1111 Cell: 734-634-2658 Fax: 734-451-4201 e-mail: mvincent@mmtc.org MMTC – Northwest Michigan Tech. Ed. Center (M-TEC) at NMC 1701 E. Front Street Traverse City, MI 49686 Richard Wolin Phone: 231-995-2003 Fax: 231-995-2022 Email: rwolin@nmc.edu MMTC – Genesee Valley Genesee Regional Chamber of Commerce 519 S. Saginaw St. Suite 200 Flint, MI 48502 Marlene Nicol Phone: 810-600-1436 Fax: 810-600-1461 e-mail: mnicol@thegrcc.org MMTC – Northeast Center for Manufacturing Improvement at SVSU 7400 Bay Rd. University Center, MI 48710 Bob Schooks Phone: (989) 964-7076 Fax: (989) 964-2656 Email: rmschook@svsu.edu MMTC - Upper Peninsula Northern Initiatives P.O. Box 7009 Marquette, MI 49855 Dennis West Phone: 906-226-1671 Fax: 906-228-5572 e-mail: dwest@niupnorth.org MMTC – West Right Place Inc. 161 Ottawa Ave NW Suite 400 Grand Rapids, MI 49503-2701 Jim Ross Phone: 616-771-0557 Fax: 616-771-0555 e-mail: rossj@rightplace.org

29. Counties served by MMTC Regional Offices SoutheastWestNortheastNorthwestGenesee ValleyUP Bruce KnappJim RossRobert SchooksRich WolinMarlene NicolDennis West (888) 414-6682(616) 771-0557(989) 964-7046(231) 995-2003(810) 600-1436(906) 226-1671 EatonAlleganAlconaAntrimClintonAlger HillsdaleBarryAlpenaBenzieGeneseeBaraga InghamBerrienArenacCharlevoixLapeerChippewa JacksonBranchBayEmmetShiawasseeDelta LenaweeCalhounCheboyganGrand Traverse Dickinson LivingstonCassClareKalkaska Gogebic MacombIoniaCrawfordLake Houghton MonroeKalamazooGladwinLeelanau Iron OaklandKentGratiotManistee Keweenaw St. ClairMecostaHuronMason Luce WashtenawMontcalmIoscoMissaukee Mackinac WayneMuskegonIsabellaOsceola Marquette NewaygoMidlandWexford Menominee OceanaMontmorency Ontonagon OttawaOgemaw Schoolcraft St. JosephOscoda Van BurenOtsego Presque Isle Roscommon Saginaw Sanilac Tuscola