Focused Innovation In Manuacturing

What are the cost drivers in auto sector manufacturing to innovate around to remain viable against global competition.

Convener:

Derek Nash 

Attendees:

Nolan Piper 

Consider developing a template of a manufacturing business model

Identify the major categories /cost centers as factors to consider in the analysis.

Map this template onto your business.

Analyse each factor as it applies to your business and rate each as advantaged, neutral, or disadvantaged compared to the global competition.

Give each factor a ranking (1 to 5 or 1 to 10) low being relatively small proportion of your costs, to high being a major portion of your costs.

Below is an example of our ranking of a typical manufacturer in the Waterloo region.

Factors                Rating                                              Ranking            Innovation strategy

Materials             geography and comdity dependent

Labor    -             disadvantaged

Process                neutral(same tech available globally)

Transportation   - advantage for local manufacturers

Capital cost            neutral

Operating cost        disadvantaged-

Maintenence cost    Disadvantaged (skilled labor costs high)

Taxes                    geography dependent

Approach is to minimize the disadvantages, leverage the advantages and thoroughly understand the neutrals.

The challenge is what innovations to use to minimize and leverage impact in the key areas.

Other sessions at the camp discussed various aspects of innovation and some specific innovation technologies and tools. Participants are potential contacts to provide details of the technologies and assistance in implementation as appropriate.

eg: Social media technology (http://wiki.theagenda.tvo.org/Waterloo/J-3)

 ref: Competing with Global markets (http://wiki.theagenda.tvo.org/Waterloo/L-2)