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Helping Puget Sound manufacturers succeed through innovation, supply chain positioning, and business development APICS Professional Development Meeting April 9, 2008. Designed by Danielle Hinkle-Abba, SRI International. CAMPS Mission Helping Puget Sound manufacturers succeed through Innovation

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Helping Puget Sound manufacturers succeed through innovation, supply chain positioning, and business developmentAPICS Professional Development MeetingApril 9, 2008

Designed by Danielle Hinkle-Abba, SRI International

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CAMPS Mission

Helping Puget Sound manufacturers succeed through

Innovation

Supply chain positioning

Business development

value proposition
Value Proposition:

Value Proposition

The value of a CAMPS membership lies in the power associated with being part of a network of manufacturers, supply chain partners, business advisors, and strategic partners, all working together. CAMPS provides the connections to establish business relationships among members, share in a culture of innovation, and create supply chain development opportunities in emerging businesses, technologies, and processes.

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Project History

2002 - City of Kent and Kent Chamber completed a long range strategic plan. Local manufacturers indicated a need to find a solution to off-shore competition and changing supply chain conditions

2003 - Manufacturing Council of the Kent Chamber Board meets to develop plans for the Center. The City of Kent and Kent Chamber jointly submit grant applications to the Economic Development Administration (EDA) to secure funding for a feasibility analysis and business plan for the Center

2004 – Washington State Legislature passes bill establishing non-profit Centers for Advanced Manufacturing . A grant of up to $350,000 is approved by the EDA, with matching funds received from the City of Kent, Port of Seattle, manufacturers, and other businesses

July 2005 - Grant received from EDA, State Legislature approves matching funds of $215,000

November 2005 - Consultant team selected to conduct a feasibility study

April 2006 - Feasibility Study completed

July 2006 - Business Plan completed

July 2007 - CTED awards $150,000 to launch CAMPS (provided match to remaining EDA funds)

October 2007 - Executive Director appointed

January 2008 – Officially launched

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Manufacturing in Puget Sound

General Information:

3,000 Manufacturers

Most all industries

Over 1,000 are involved with the metal trades

Feasibility Study:

One-third – Highly interested in a Center for Advanced Manufacturing

One-third – Moderately interested in a Center for Advanced Manufacturing, but generally wanted more information

One- third – Little or no interest in a Center for Advanced Manufacturing

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Impacts

Feasibility Study projections of likely economic impacts of a Kent-based center over five years include:

An increase of $129  million in sales

Cost savings of $21 million

New investments of $27 million

366 jobs created

878 jobs retained

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Feasibility Study Recommendations

Significant challenges:

Manufacturing employment is declining

Operating costs are high

Access to skilled workers is limited and competitive

Offshore competition is still an issue

Feel isolated and have not been effectively reached by existing providers

Most area manufactures know they need help -- they just don’t know where to get the assistance

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Feasibility Study Recommendations

The Center should focus on a few things and do them well - core competencies (e.g., innovation, networking, and supply chain development) and do them very well

Center should not duplicate what other organizations are already doing

Successful transformative work is hard work, is often risky, and needs to be built over time

Successful transformative work involves higher level participation than more routine assistance work

It is also more expensive

Top Down, high-level support for change from within the firm is a key ingredient for success

High degree of trust that firms place in the center. Usually this trust is built up over time.

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CAMPS today

CAMPS is a non-profit membership organization

Camps is governed by an independent Board of Directors

Camps has a Puget Sound Focus

Forward-thinking manufacturing companies who recognize the need to be pro-active in our rapidly changing world

Focus on finding innovative products and processes

Desire to position their companies in the supply chain process

Recognize the need for pre-qualified business development specialists

Want solutions to workforce issues

Want alternatives to overcome financial constraints to fund growth

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Location

Green River Community College

Kent Station Campus

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Industry Focus

All sectors will be serviced, with the initial focus on the following:

  • Aerospace and Defense
  • IT Products
  • Life Sciences and Health Products
  • Environmental and Energy (Green Technology)
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Company Focus

Manufacturers:

Services - 20 to 200 employees

Networking and relationships – all sizes

Supply Chain

All sizes

OEM (Original Equipment Manufacturers)

Non Manufacturing Customers

Associates

Top Notch, Professional resources, with proven track records

Affiliates

Strategic Partners

slide13

Classes of Membership

Manufacturing  Member (voting member)

Definition:  A manufacturing entity is any company defined by North American Industry Classification System (NAICS) within the numerical ranges from 31 through 33 as outlined by the 2007 NAICS Tables.

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Supply Chain Member (voting member)

Definition:  A Supply Chain member is an OEM (Original Equipment Manufacturer) or non-manufacturing customer who engages with manufacturers within their supply chain to produce components, services, or finished products

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Associate Member (non-voting member)

Definition - Associate Membership would be available for non-manufacturers (suppliers, consultants, and service providers), to provide access to the manufacturing members for use of their goods and services.  Associate Memberships will be limited to a ratio of two manufacturers or supply chain members; to one Associate Member.   Associate Members must submit full credentials and capabilities to CAMPS to substantiate their membership as being advantageous to manufacturer or supply chain members.  Associate members must be pre-qualified by CAMPS criteria, prior to acceptance of membership. Non-Profit and Not for Profit entities who join for the purpose of securing business opportunities fit into the Associate Member classification.

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Affiliate  Member (Ex-officio, non-voting member)

Definition:  An Affiliate Member is a cooperating public entity that has a strategic relationship with CAMPS.  Affiliates are members by association with CAMPS, may have special dues requirements.  Examples are: training/educational establishments, government funding and sponsoring organizations.

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Launch Stage (Proof of Concept)

Goals

40 Members by end of May 2008

100 Members by end of 2008

300 Members by end of 2009

500 Members by end of 2010

slide18

Launch Stage (Proof of Concept)

Finding a starting point (November and December 2007)

Manufacturers feedback

Ability to shape the program

Buy-in of the concept

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Phase I

CAMPS, in this early launch stage, is developing eight goals to help manufacturers within the first twelve months

Executive Team Round Table Interaction (Peer to Peer)

Supply Chain “Boot Camp”

State of the Company Assessment

Innovation Data Base

E-Commerce Advancements

Workforce

Financing

Brokered services

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Executive Team Round Table Interaction

  • Peer to Peer Interaction
  • Monthly round table forums for small groups of executives to meet, receive updates on requested subjects, network, and collaborate on common points of interest
  • Selected topics
  • Provide feedback to CAMPS
slide21

Supply Chain “Boot Camp”

Introductory supply chain strategy development and training

Dual focus on how companies can position themselves into the supply chains of OEM and large customers or to build their own supply chains

Further development of supply chain requirements, such as certifications, documentations, EDI capabilities

Linkages to OEM and non-manufacturing customers

Emerging industry information

Export connections

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CAMPS Advantage Assessment

CAMPS staff will provide company assessments relating to the current status, short and long term goals, and requirements to achieve those goals. This will set stage for solid business foundations in alignment with strategic business plans

How do the go from XXX to XXX?

Today $3 million

3 Years $6 million

5 Years $10 million

slide23

Innovation Data Base

Knowledge Management System (KMS) to provide exclusive access to members on the latest emerging industries, technologies, products, and processes, with secure website access

Current, credible, concise information

Assistance from Educational Institutions

Internships

Project Assistance

Modeling

slide24

e-Commerce Advancements

Portal exchange between company websites and CAMPS website

Search Engine Optimization (SEO) techniques, enabling companies to raise awareness of their specialized capabilities, certifications, and specialties

e-Commerce tools in selected instances

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Workforce

CAMPS will provide members with access to the latest programs available to find solutions to workforce issues, including tax legislation, incentives, and tax credits

Public sector realizes the value of “family wage jobs”

Interest to find internal solutions to meeting the needs for skilled labor

On-the-job training (OJT)

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Financing Solutions

Preparation steps to qualify for loans

Conventional Loans

Small Business Administration (SBA)

Asset Based Lenders

Bridge Capital

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Brokered services

Assist companies in accessing the region’s top-notch pre-qualified providers to develop highly efficient business foundations, practices, and processes

Examples:

Training

Improvement programs

Lean

Certifications

Legal

Accounting

Specialized Banking

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Phase II

New Product development assistance

Hosted Innovation Events

Intelligence gathering assistance on specific markets products, materials, and processes

Requirements to build a company supply chain process

Supply Chain linkages to OEM suppliers

Business Development Company (BDC)

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Importance of Innovation

“Over the next six years, products representing more than 70% of manufacturer’s sales today will be obsolete due to changing customer demands and competitive offerings”

“Average new product development cycle is 13 months”

Ref: Deloitte Research - Mastering Innovation, Exploiting Ideas for Profitable Growth

slide31

Global Competition

New customers

New competitors

Pace of change continues to accelerate

slide32

Supply Chain

Two types:

Part of an OEM or non-manufacturing customer

Develop own supply chain

Or combination of both

slide33

Supply Chain Requirements

Understand the necessary strategies

Develop the necessary documentation

Prepare for and obtain the necessary certifications

Establish the infrastructure to support supply chain requirements

EDI

Quality Tracking

Meeting Kaizen requirements

slide34

Vision

Roll together innovation, supply chain and technology

Innovation Partnership Zone (IPZ) – The City of Kent and CAMPS are collaborating on a 2008 application to the State of Washington, Department of Community, Trade, and Economic Development (CTED) designation and Capital Grant Application for a Kent based IPZ.

Creation of a “Center for Innovation” in the Kent IPZ

Development of an Agile Manufacturing Model

Leveraging the capabilities of several small companies

Using technology to enhance collaboration

Market CAMPS members’ capabilities – fast, flexible, and responsive

slide35

Washington Manufacturing Appreciation Symposium

Sixth Annual

June 3rd

Supply Chain Boot Camp

Industrial Index Update – Metal Trades Growth

Genie Industries – Been there and Done it

Boom Next Door – Canadian Economic Growth and $175 Billion in business opportunities