FOR DISCUSSION ONLY

REPORT ON:

THE FUTURE OF ADVANCED

MANUFACTURING FORUM

16 APRIL 2015

Prepared by:

Michael A. Rostek, CD, PhD

Program Director UOIT Futures Forum

27 May 15


TABLE OF CONTENTS

PREFACE

INTRODUCTION

WORKING PAPER

Introduction

Advanced Manufacturing

Embracing Change – Durham Region and UOIT

Conclusion

KEYNOTE SPEAKER

Industry 4.0

Stakeholder Collaboration

Digitization

Skilled Workforce

PANEL SPEAKERS

Cimetrix Solutions: Mr. James Janeteas, CEO

McMaster University: Dr. Mo Elbestawi, Vice President Research and International Affairs

General Motors: Mr. Brian Tossan, Director, Canadian Engineering

IBM Analytics: Mr. Kal Gyimesi, Automotive Industry Marketing Leader

COMMENTS/QUESTIONS

FINAL PANEL SPEAKER’S REMARKS

ATTACHMENTS

A. Keynote Presentation by Robert Hardt, CEO and President of Siemens Canada Ltd. “The Future of Advanced Manufacturing – April 16, 2015.

B. Panel Presentation: James Janeteas, “Advanced Manufacturing - 3D Printing: Advanced Applications”.

C. Panel Presentation: Kal Gyimesi, “Automotive 2025: Industry without Borders - Engage with consumers, embrace mobility, exploit the ecosystem”.

D. UOIT Communications, “A catalyst for the future of advanced manufacturing”, Canadian Manufacturers and Exporters Magazine.

PREFACE

The inaugural event of the Futures Forum series was held at University of Ontario Institute of Technology (UOIT) on 16 Apr 15 entitled “The Future of Advanced Manufacturing: Innovation and Collaboration”. The Futures Forum series is underpinned by UOIT’s research priorities as outlined in the “Strategic Research Plan 2013-2018” and “Strategic Mandate Agreement 2014”.

INTRODUCTION

  1. Manufacturing has been a key driver of Ontario’s economy for more than 150 years. Much of this traditional labour-intensive manufacturingtook placein Durham Regionpreviously known as Ontario County. However, today, manufacturing successis inextricably linked to advanced-technology-based processes known as advanced manufacturing.
  1. This forum is UOIT’sopportunity to accomplish three things:

a.Broaden the discussion among industry, government and academia about where advanced manufacturing needs to go;

b.Sharpen our collective focus on the future; and

c.Advance the crucial partnership among industry and the academy.

  1. UOIT is the ideal place to stage this discussion about the future of advanced manufacturing. Through innovation in research, scholarship and education, UOIT continues to identify and invest in strategic research priorities such as advanced manufacturing.
  1. The keynote presentation was provided by Robert Hardt, CEO and President of Siemen’s Canada. His presentation was followed by a panel discussion with four industry experts who have maintained their focus on the future of advanced manufacturing for many years:
  1. Dr. Mo Elbestawi, Vice-President, Research and International Affairs, McMaster University;
  2. KalGyimesi, Automotive Industry Marketing Leader with IBM Analytics;
  3. James Janeteas, Chief Executive Officer of Cimetrix Solutions; and
  4. Brian Tossan, Director, Canadian Engineering, General Motors Canada.

WORKING PAPER

Introduction

  1. While the global economy was deeply affected by the economic recession of 2007-09, economic recovery continues to be slow arguably brought on by prevailing uncertainty - changes in economic and financial policies, different views about growth prospects, productivity movements, wars, acts of terrorism, and natural disasters.[1] However, long term growth of the global economy is still expected through to 2030 with increasing internationalization of markets for goods, capital, services and labour. Further, it is anticipated that this economic growth will be driven by population growth, improvements in productivity, and greater integration of the global economy.[2]

Within this global context, Canada continues to excel with a critical component of its competitiveness and prosperity derived from the manufacturing sector.[3] Further, manufacturing has been a key driver of Ontario’s economy for more than 150 years.[4] In its traditional sense, manufacturing is a labour intensive mechanical process; “…essentially the step-wise transformation of raw materials (coming from mainly natural sources such as underground mines, forests and so forth) into finished goods.[5] Through advancements, primarily in science and technology and convergence of these technologies, we have witnessed the emergence of advanced manufacturing, a “…concept that entails both leading-edge methods of manufacturing new and existing products as well as improved approaches to designing and coordinating operations.”[6] Indeed, today manufacturing constitutes “…a vibrant, highly innovative and technology-driven industry of the Canadian economy.”[7]

Advanced Manufacturing

  1. Articulated as a “new industrial revolution”[8] or the “democratization of manufacturing”[9], advanced manufacturing represents a shift from traditional labour-intensive processes to advanced-technology-based processes. It is defined as:

…a family of activities that (a) depend on the use and coordination of information, automation, computation, software, sensing, and networking, and/or (b) make use of cutting edge materials and emerging capabilities enabled by the physical and biological sciences, for example nanotechnology, chemistry, and biology. This involves both new ways to manufacture existing products, and especially the manufacture of new products emerging from new advanced technologies.[10]

  1. Advanced, technology-based processes create new ways to manufacture new and existing products and this change was largely engendered through the emergence of five major trends:
  • the ubiquitous role of information technology,
  • the reliance on modeling and simulation in the manufacturing process,
  • the acceleration of innovation in global supply-chain management,
  • the move toward rapid changeability of manufacturing in response to customer needs and external impediments, and
  • the acceptance and support of sustainable manufacturing.[11]
  1. Without increased costs or decreased performance, the trends noted above highlight advances in manufacturing through tighter integration of R&D and production, mass customization, increased automation, and a focus on the environment.[12]
  1. More specifically, a recent MIT study identified that research trends in support of advanced manufacturing tend to cluster into seven manufacturing areas:
  • Nano-engineering of Materials and Surfaces,
  • Additive Precision Manufacturing,
  • Robotics, Automation and Adaptability,
  • Bio-manufacturing/Pharmaceuticals,
  • Distributed Supply Chains/Design,
  • Next Generation Electronics, and
  • Green Sustainable Manufacturing.[13]
  1. New models to enhance manufacturing research should be fostered through industry/academic opportunities as well as maximizing available private and public research funding. Within Canada certain trends have become prevalent which may provide a foundation for future industry/academia engagement:
  • Increased Agility. The emphasis here is not just on technologies that enhance productivity and flexibility in existing large scale manufacturing processes. Within Canada large manufacturers are using multiple locations for critical operations to avoid supply chain interruptions and raise their responsiveness and dependability, adapting production volumes based on customer demand and profitability and varying production mixes [i.e. Auto: maximizing multiple plant capacity].
  • Mass customization capacity. While there is indeed promise with programmable manufacturing processes that do not rely on capital‐intensive tooling and fixture, mass customization is driving new investment in manufacturing facilities.
  • Market Niches. In Canada offerings include specialized products or ability to provide a customer solution that can focus on product or services; [i.e. Auto: catering to Canadian climate], and
  • Innovation (process, organizational, product and marketing). Technologies that are truly enablers of classes of products that do not yet currently exist. In Canada, for example, “[a]cross industries, many manufacturers have implemented advanced production technologies in their efforts to reduce total landed cost in aerospace, motor vehicle and motor vehicle parts industries.”[14]
  1. Identification of these trends provides an expected future within the advanced manufacturing industry and a foundation for exploration of cooperation and collaboration in the immediate future. As concluded in Industry Canada’s recent Advanced Manufacturing report:

The research also presents important linkages between emerging business models in manufacturing, investment in production facilities, and innovation and advanced technology adoption. These connections can help inform a continued dialogue between businesses, governments and academia.[15]

  1. Perhaps the most significant advancements within the manufacturing sector lie within the deeper future perspective known as Industry 4.0.[16] While still very much in its conceptual stage, the idea that manufacturing processes will become optimized and largely controlled by themselves is not that far off into the future. Characterized as a fourth revolution for automating manufacturing processes, Industry 4.0 is more intelligent making “…use of miniaturized processors, storage units, sensors, and transmitters that will be embedded in nearly all conceivable types of machines, unfinished products, and materials, as well as smart tools and new software for structuring data flows.”[17]

Embracing Change – Durham Region and UOIT

  1. Manufacturing is critical to Canada's prosperity, provides high-quality, well-paying jobs, and is an important contributor to strong economic growth in Ontario. While Ontario firms have competitive advantages in some knowledge-intensive sectors, they lag competitors in innovation, Information and Communications Technology (ICT) adoption, productivity and market diversification.[18]

“A thriving manufacturing sector is vital to Ontario’s future because it drives productivity advancement, investments in research and development, and trade.”[19] Further, it is well known that the world’s strongest economies have a significant manufacturing base. Advanced manufacturing creates jobs in design, advertising, customer service and global marketing.”[20]

  1. Durham Region has long been a centre of traditional manufacturing in Canada, with particular strengths in the automotive (e.g. General Motors), aerospace (e.g. Messier-Dowty) and automation (e.g. Siemens) sectors. As technology and other enabling tools have become more sophisticated, Durham's manufacturers have moved to implement increasingly advanced methods, technologies and structures for developing and delivering their manufactured product to market.[21]
  1. Durham Region is considered a peri-urban or “rurban” area and it is projected that these areas will grow faster than city centers as they provide cheaper land for housing and manufacturing. Indeed, metropolitan regions will spill over multiple jurisdictions creating mega-regions. By 2030, there will be at least 40 large bi-national and tri-national metro regions one of which could be the Durham Region.[22]

Durham Region is well known for the strength of its manufacturing sector which is continually undergoing rapid diversification. Durham is endowed with a young, skilled labour force. It has all the utilities, transportation and social infrastructure associated with modern metropolitan communities. The single most significant economic factor for the Region has been the dramatic increase in residential development.[23]

  1. The rise of the "advanced" manufacturing sector has created opportunities related to both the strengthening and deepening of traditional manufacturing activity in the Durham Region; highlighting some of the fundamental factors that are necessary for a vibrant manufacturing industry which includes access to low-cost or high-skill labour (or both); proximity to demand; efficient transportation and logistics infrastructure; availability of inputs such as natural resources or inexpensive energy; and proximity to centres of innovation.”[24] Although there is already acknowledgement of an increased level of skills found within the Durham Region labour force[25] a key factor in strengthening a prosperous advanced manufacturing sector is easy access to innovation and STEM based education centres such as University of Ontario Institute of Technology (UOIT) which provides ready and easy access to knowledge, expertise and resources.
  1. Further, a key policy priority for advanced manufacturing is education and skill development and one of the key concerns for the manufacturing industry is access to talent. Indeed, McKinsey Global Institute predicts a “…potential shortage of more than 40 million high skilled workers by 2020.” While many manufacturing companies will be busy competing for talent, there will also be an increase need to access innovation centres. Some manufacturing industries have built apprenticeship programs which create an employment pipeline direct to the manufacturing company (i.e. Siemens). In this vein, UOIT as a STEM-based university is exceptionally well placed within the Durham Region to capitalize on this trend. Not only should UOIT link direct with manufacturers, they should also prepare the next generation workforce and reach into the public/private schooling system with a view to encouraging state-of-the-art co-op/apprentice programs which will see UOIT cultivate its future student population before they walk through the doors.
  1. Advanced manufacturing processes will likely be more energy and resource efficient in the future, as companies strive to integrate sustainable manufacturing techniques into their business practices to reduce costs, to decrease supply-chain risks, and to enhance product appeal to customers.

Conclusion

  1. UOIT is positioned within a “rurban” area with a well-regarded history as a manufacturing centre. The cities within the Durham Region must work together as “rurban” areas will exhibit greater growth than urban centres and Durham Region is not to be excluded.
  1. With the advances in ICT, manufacturing is on the verge of a renaissance and what is emerging as the fourth industrial revolution. Increased automation, fast and flexible customization, greater efficiency, less waste are some of the characteristics of advanced manufacturing. As we move forward, many of these trends will intersect and create new patterns and processes that we have yet to discover.
  1. Increased automation and greater efficiency will be coupled with fewer jobs across the manufacturing sector and those that do remain will require persons with greater knowledge and skills. Preparing the next generation innovators, researchers and workers will require new approaches which include, among others, developing state-of-the-art apprenticeship programs for 21st century manufacturing, creating opportunities and incentives for older Canadians to remain vibrant contributors in the workforce, or renewed efforts to expand STEM education and create greater opportunities to integrate into the workplace.[26]
  1. It can be argued that UOIT may have a unique opportunity to move beyond the traditional education model in advanced manufacturing by adopting a more holistic approach that bridges academia, policy and industry in creating graduates who understand the context within which they translate their ideas and follow through to capabilities in the workplace. By adopting a comprehensive approach[27] to advanced manufacturing curriculum, UOIT can create advanced manufacturing professionals that can Conceive – Design – Implement – Operate[28] complex value-added advanced manufacturing products, processes, and systems in modern team-based environments. They will be able to participate in advanced manufacturing processes, contribute to the development of advanced manufacturing products, and do so while working to professional standards; in essence, UOIT will create new advanced manufacturing professionals.
  1. UOIT is Durham Region’s largest university which harnesses capabilities in education, research, process and design primarily, but not exclusively, on a STEM platform. As an agent for change, UOIT is well placed to harvest the greatest possibilities of the region for an industry that is driven by advancements in ICT , has land for development and a workforce familiar with manufacturing. However, speed and flexibility will be paramount for success in advanced manufacturing and as such work must begin today if we are to build a leadership position for tomorrow.

KEYNOTE SPEAKER

Industry 4.0

  1. Robert Hardt’s presentation responded to the question of whether manufacturing,a vital component of Ontario’s economy for more than a century, will still be true in 2025. While there is current evidence of renewed strength and importance of the manufacturing sector in Canada, Hardt emphasized that everything has changed, is changing, and will continue to change at an unprecedented pace. As such, the choice is to adapt, innovate, accept change as a way of life, or the manufacturing sector will die. In response to this new paradigm, Hardt emphasized that Siemens has embraced change emphasizing a shift from labour-intensive focus in manufacturing to a process based on advanced technology known as the “fourth industrial revolution” or “Industry 4.0”. While emphasizing the motto “We are succeeding. Therefore we must change”, Hart ventured to say that the only surviving manufacturers ten years from now will be those that have transitioned to “advanced manufacturing”.

Stakeholder Collaboration

  1. A major portion of Hardt’s presentation emphasized stakeholder collaboration. Hardt articulated that we are all playing in a global arena, and to prosper, we need to be part of a team – a team that collaborates on training and education, on research and development, on national economic policies, and on international trade. The end state being nothing lessthan ensuring Canada is a strong global competitor.

Digitization

  1. With the motto “Digitize or Die”, Hardt emphasized digitalization will create totally different technical platforms and opportunities to innovate new products, services, and business models with the emphasis on intellectual property, not hardware. Digitization is at the very heart of Siemens’ vision for the future andis the only the only way toward a successful future in manufacturing. It is the only means to real efficiency, through optimizing and networking systems along the entire product and production life cycle.

Skilled Workforce

  1. Without skilled workers, advanced manufacturing will not exist.There has been little or no collaboration between classrooms and businesses., This shows in the results of graduates and apprentices who in truth are not prepared for the workplace.Siemens, working with key partners, is developing a training and education solution that establishes a model that can be effective right across the advanced manufacturing sector. Investment in a skilled workforce also includes investment in R&D if advanced manufacturing is to be part of a strong Canadian economy.

PANEL SPEAKERS

Cimetrix Solutions: Mr. James Janeteas, CEO

  1. Advanced manufacturing (3D Printing) definition, process, and technology have changed over the last 25 years but the end game remains the same –to become more competitive on local and global levels. Additive manufacturing can be leveraged for a great number of businesses and market size is set to grow to $21B+ by 2020. One of the key issues is to understand how to leverage additive manufacturing as part of a business solution. Fueling/enabling growth in additive manufacturing is primarily based on the advancement of materials alongside technology. It is important to understand that additive manufacturing can support a complete product lifecycle. However, use of additive manufacturing does not make sense everywhere. The ideal situation exits where requirements are highly complex with low volume production (i.e. assembly aids such as jigs or fixtures; fabrications tools such as injection moulds). While opportunities in advanced manufacturing are endless, advanced manufacturing should be viewed as complimentary process alongside traditional forms of manufacturing.

McMaster University: Dr. Mo Elbestawi, Vice President Research and International Affairs