The Competitive Edge
A monthly newsletter from
The Wisconsin Manufacturing Extension Partnership

December 2010
In This Issue
Lean Culture Reduces Inventory by $3.5 Million
5 Ways to Promote a Lean Culture
Mfg Execs Shows Shift in Supply Chain Management
Suri is IW Hall of Fame Inductee
WMEP Delivers Results for Wiscsonsin
Lean Culture Reduces Inventory by $3.5 Million

DeCrane Aircraft Seating Company uses lean in all aspects of the business

A telephone sitting on a desk tucked away in a corner on the shop floor - it's probably one of the most common and innocuous sights in any manufacturing facility.  But for Jim Tress, general manager of DeCrane Aircraft Seating Company, that telephone is a symbol of the firm's commitment to continuous improvement, productivity and employee empowerment.

In 2003, when Tress joined DeCrane, a manufacturer of aircraft seating for the private aircraft market based in Peshtigo, he saw an organization in desperate need of a lean transformation.   DeCrane was rigidly structured along hierarchical chains of command with little lateral communication and was resistant to change and innovation.
Read more

Articles of Interest
Manufacturing Matters! Call for Presenters

The Manufacturing Matters! Conference is Wisconsin's premier manufacturing conference, held next year on Tuesday, May 17, 2011 at the Frontier Airlines Center in Milwaukee.

We are seeking highly interactive workshops that teach valuable skills, stimulate innovative thinking, model best practices, and encourage the exchange of ideas and solutions. (Non-lecture style presentations only)

Click here to learn more and  to submit your application.


WI Manufacturers
in the News


Milwaukee's Job Outlook Among the Brightest in the Nation

Wisconsin Chambers of Commerce Voice Optimism

US Trade Gap Drops as Exports Rise to Two-Year High

Quick Links


Greetings!
At WMEP, we've seen a strong uptick in our client's businesses and good  economic news has been reported in many recent articles.  A new Manpower survey predicts hiring will pick up in 2011, with Milwaukee's job outlook among the brightest in the nation. Economic activity in the manufacturing sector expanded in November for the 16th consecutive month, and the overall economy grew for the 19th consecutive month, according to the ISM Report On Business®.

Keep reading for relevant information on manufacturing trends, customer successes, and ways to help your operation become lean.
5 ways to promote a Lean Culture
by Steve Straub, Senior Manufacturing Specialist

The concept behind Lean is simple, but sustaining Lean practices long-term is hard. Lean is the process of removing waste from any process throughout the organization. This is an ambitious goal, and a proven way to achieve and maintain it is through developing a Lean Culture.

Read more, including links to Lean Culture success stories
New survey of senior manufacturing execs reveals shifts in supply chain strategy

Wisconsin is home to many suppliers of global OEMs


A new KPMG study of senior executives from $1 billion multi-national manufacturing businesses reveals a dramatic shift in strategy for supply chain management.  Component cost is still paramount, but this factor is considered in the context of transportation costs, ability of suppliers to innovate and respond to OEM needs, proximity to developing markets, and a host of tax, regulatory and political factors.

Click for key findings and link to study
Rajan Suri selected as 2010 Industry Week Manufacturing Hall of Fame Inductee
Suri is the creator of the Quick-Response Manufacturing, an integral part of WMEP's Accelerate program

Industry Week, a national publication for manufacturers, has named Rajan Suri to its Manufacturing Hall of Fame 2010 Dream Team.  Suri is emeritus professor of industrial engineering at the University of Wisconsin-Madison, the founding director of the Center for Quick Response Manufacturing, and the author of "It's About Time: The Competitive Advantage of Quick Response Manufacturing."

Click to read more and download a summary of his book
WMEP delivers results for Wisconsin
Small state investment yeilds big returns

The Wisconsin Manufacturing Extension Partnership provides critically-needed services to help Wisconsin manufacturers accelerate growth, profitability and global competitiveness -with a laser focus on results. Since 1998, WMEP, a private, nonprofit organization, has provided services to 4,000 small and midsize manufacturers.

WMEP recently released its results from the past year.  Some key findings are:

WMEP Drives Manufacturing Job Creation
  • Since 1998, WMEP has helped to create and save more than 13,000 state manufacturing jobs.
  • In the midst of the recession, WMEP's services created and saved 973 jobs in FY 2010.
  • This investment translates into a cost of less than $1,000 for every job created or retained - far below other state economic development initiatives.
WMEP Delivers Substantial Return on State Investment
  • During the past five years, WMEP services helped generate nearly $1 billion of positive economic impact from higher sales, cost savings, business investment and other improvements.
  • In the same period, the State of Wisconsin's investment in WMEP produced gains for manufacturers that resulted in $70 million in additional state tax revenues - a 12:1 ROI.
  • WMEP delivers more impact with fewer state dollars: Over the past decade, state investment in WMEP has declined from 39% in 2000 to 15% in 2010, as its range of services has expended and impact has increased.

Manufacturing Powers Wisconsin's Economy
Revitalizing our manufacturing sector is the fastest way to job creation, economic growth and deficit reduction.

  • Manufacturing contributes 17% to Wisconsin's economy and is the state's second largest private employer.
  • Manufacturing employs 430,000 worker and supports thousands of jobs in other industries such as professional services, finance, warehousing and transportation. About one in six private sector jobs depend on manufacturing.
  •  Wisconsin's average annual manufacturing wage of $47,773 ranks in the top four of the state's highest-paying industry sectors.
  • Manufacturers perform half of all R&D in the nation, driving more innovation than any sector.
  • 90% of Wisconsin manufacturers have less than 100 employees.

Click to download WMEP's 2010 Annual Report

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