1. 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 02139 October 27, 2011

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

3. - 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. - 4 - Laboratory for Manufacturing and Productivity Achievements Six-axis MEMS NanoManipulators

5. - 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. - 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. - 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 $3.00 24.5% 54% 26% -1% 21% 38% 124% 6% 163% 130% 36% 76% 2009 autoworker costs/hourGain since 1999 * FOR 2007. DATA: EUROPEAN WORK COST INDEX, BLS, CENTER FOR AUTOMOTIVE RESEARCH

8. - 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. - 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

10. - 10 - 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

11. - 11 - 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

12. - 12 - Laboratory for Manufacturing and Productivity Objective What are concrete action(s) we can take to revitalize US manufacturing to capitalize on innovation?

13. - 13 - Laboratory for Manufacturing and Productivity Thank You!