logging in or signing up Global Manufacturing Strategic Options TheOffshoreGroup Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 44 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: February 11, 2012 This Presentation is Public Favorites: 0 Presentation Description Michael Hetzel of Pro QC Interational presented on the topic of Global Manufacturing at The Offshore Group's 12th Annual Manufacturing in Mexico Summit. Among other topics, the presentation examines that traits that make manufacturers successful in global markets. For more information please visit http://www.offshoregroup.com/mexico-outsource-showc ase/manufacturing-in-mexico-summit Comments Posting comment... Premium member Presentation Transcript Global Manufacturing: Myth, Reality & Strategic Options: Global Manufacturing: Myth, Reality & Strategic Options Offshore Group - 12th Annual Manufacturing in Mexico Summit Michael L. Hetzel , VP/Americas Pro QC International www.proqc.com As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com“We can’t compete from the U.S.” © 2006 M.L. Hetzel: “We can’t compete from the U.S.” © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com Who says? © 2006 M.L. Hetzel: Who says? © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comDon’t Trust Your Business to Media: Don’t Trust Your Business to Media Very little accurate and objective information coming from media any more – even trade media Lack of context is nearly universal Head counts trumpeted, actual output ignored Plant closings highlighted, plant openings ignored – “If it bleeds it leads” Politicization of global trade issues resulting from general domestic political polarization © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comWhy Listen to Me?: Why Listen to Me? Over 20 years of manufacturing experience in SMMs, from the shop floor to 9 ½ years as CEO Case study information from producing and moderating 2 years of the ITCC Global Manufacturing Series Direct research – no second hand statistics Current visibility of the global supply chains of over 300 companies, large and small Daily contact with Asian operations Regular consulting engagements with SMMs © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comDo Your Own Research: Do Your Own Research Don’t believe me - or anyone else All competitive and market information must be customized and dynamic – there’s no canned solution Go direct to data sources – statistics can distort Always account for the context of information and data Research global conditions even if your market is domestic only – don’t miss opportunities or threats Use government market research resources such as USEAC © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comAmplified Costs & Risks of International Procurement: Amplified Costs & Risks of International Procurement Supply chain length, inventories and queues Quality disruptions & replacement product delivery delays Logistical risks & market tolerance for delays Political risks Currency risks © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comCulture & Language: Culture & Language Mexico & China Greater Asia Central & Eastern Europe Regions of the U.S. © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comTime Zones: Time Zones Communications Travel Dateline Effect © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comProduct Life Cycle Phases: Product Life Cycle Phases Innovative & unique introductory phase Popularity & competition arrive Commodity phase Mature phase & proximity to market © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comCommon Myths vs. Reality: Common Myths vs. Reality China’s growth and size U.S. current account deficit U.S. Import sources U.S. manufacturing output U.S. export levels India’s growth and size What about Canada & Mexico? © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comMarketing: Marketing The number one cause of failure for U.S. manufacturers is a lack of marketing and market research Number two is failing to adapt the company once market conditions are known © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comCommon Traits Identified in Successful U.S. Manufacturers: Common Traits Identified in Successful U.S. Manufacturers They open their minds to global trade even if they choose not to participate in global markets or sourcing. No one benefits from anger and fear All have a “can do” attitude embedded from the top down in their corporate cultures, with high levels of employee development and commitment to executing global strategies Most of the companies engage in international activities of some type (Sourcing, Alliances, JVs, WOFEs), and all are creating growth and success in the U.S. as a result © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comCommon Traits Identified in Successful U.S. Manufacturers: Common Traits Identified in Successful U.S. Manufacturers All of these companies are committed to excellence across the enterprise, not just as a buzzword but as a functional, deliberate and measurable business practice. Whether operating internationally or not all of these companies are exercising a strong commitment to good, old-fashioned operational excellence as a key foundation of their success. These companies directly engage in marketing and market research – the benevolent U.S. market anomaly of the last 50 years is over © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comExample Strategies from Case Studies: Example Strategies from Case Studies Attitude of positive outlook rather than anger about global business conditions. “Daily attitude ‘adjustments’ shared with staff to keep the organization from falling prey to the discouraging headlines our industry and the global economy creates” Evolution in the recognition that “The world will not wait for your company. Take a ‘reasonable risk’ and help the company to evolve into something better (and typically different) than it used to be” © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comExample Strategies from Case Studies: Example Strategies from Case Studies Sharing all of their metric tracking with their clients and engaging in “value engineering redesign” to create new opportunities for their products through the conversion of designs from other production methods Harnessing offshore inputs for local competitive advantage, using global experience to conduct a successful “U.S.-China balancing act” © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comExample Strategies from Case Studies: Example Strategies from Case Studies Build a business network of alliances and partnerships to remain in alignment with the global movements of their clients. Remember that trade flows both ways, not just inbound, and pursue more exports Recognize that resistance to change and globalization is not unique to people in the U.S. Look for and capture crossover opportunities to other sectors and categories © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comFour Fundamental Changes: Four Fundamental Changes Attitude Marketing Collaboration Products & Processes © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comStrategic Overshoot: Strategic Overshoot The tendency to decide to operate in another country, often China these days, before careful analysis of the actual business and market conditions rationalizes the decision The real solution is often much closer to home © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comThe U.S. Doesn’t Import Too Much…: The U.S. Doesn’t Import Too Much… …We Export Too Little © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comGlobal Manufacturing: Myth, Reality & Strategic Options: Global Manufacturing: Myth, Reality & Strategic Options Offshore Group - 12th Annual Manufacturing in Mexico Summit October 20, 2006 Michael L. Hetzel, VP/Americas Pro QC International www.proqc.com © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Global Manufacturing Strategic Options TheOffshoreGroup Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 44 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: February 11, 2012 This Presentation is Public Favorites: 0 Presentation Description Michael Hetzel of Pro QC Interational presented on the topic of Global Manufacturing at The Offshore Group's 12th Annual Manufacturing in Mexico Summit. Among other topics, the presentation examines that traits that make manufacturers successful in global markets. For more information please visit http://www.offshoregroup.com/mexico-outsource-showc ase/manufacturing-in-mexico-summit Comments Posting comment... Premium member Presentation Transcript Global Manufacturing: Myth, Reality & Strategic Options: Global Manufacturing: Myth, Reality & Strategic Options Offshore Group - 12th Annual Manufacturing in Mexico Summit Michael L. Hetzel , VP/Americas Pro QC International www.proqc.com As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com“We can’t compete from the U.S.” © 2006 M.L. Hetzel: “We can’t compete from the U.S.” © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com Who says? © 2006 M.L. Hetzel: Who says? © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comDon’t Trust Your Business to Media: Don’t Trust Your Business to Media Very little accurate and objective information coming from media any more – even trade media Lack of context is nearly universal Head counts trumpeted, actual output ignored Plant closings highlighted, plant openings ignored – “If it bleeds it leads” Politicization of global trade issues resulting from general domestic political polarization © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comWhy Listen to Me?: Why Listen to Me? Over 20 years of manufacturing experience in SMMs, from the shop floor to 9 ½ years as CEO Case study information from producing and moderating 2 years of the ITCC Global Manufacturing Series Direct research – no second hand statistics Current visibility of the global supply chains of over 300 companies, large and small Daily contact with Asian operations Regular consulting engagements with SMMs © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comDo Your Own Research: Do Your Own Research Don’t believe me - or anyone else All competitive and market information must be customized and dynamic – there’s no canned solution Go direct to data sources – statistics can distort Always account for the context of information and data Research global conditions even if your market is domestic only – don’t miss opportunities or threats Use government market research resources such as USEAC © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comAmplified Costs & Risks of International Procurement: Amplified Costs & Risks of International Procurement Supply chain length, inventories and queues Quality disruptions & replacement product delivery delays Logistical risks & market tolerance for delays Political risks Currency risks © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comCulture & Language: Culture & Language Mexico & China Greater Asia Central & Eastern Europe Regions of the U.S. © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comTime Zones: Time Zones Communications Travel Dateline Effect © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comProduct Life Cycle Phases: Product Life Cycle Phases Innovative & unique introductory phase Popularity & competition arrive Commodity phase Mature phase & proximity to market © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comCommon Myths vs. Reality: Common Myths vs. Reality China’s growth and size U.S. current account deficit U.S. Import sources U.S. manufacturing output U.S. export levels India’s growth and size What about Canada & Mexico? © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comMarketing: Marketing The number one cause of failure for U.S. manufacturers is a lack of marketing and market research Number two is failing to adapt the company once market conditions are known © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comCommon Traits Identified in Successful U.S. Manufacturers: Common Traits Identified in Successful U.S. Manufacturers They open their minds to global trade even if they choose not to participate in global markets or sourcing. No one benefits from anger and fear All have a “can do” attitude embedded from the top down in their corporate cultures, with high levels of employee development and commitment to executing global strategies Most of the companies engage in international activities of some type (Sourcing, Alliances, JVs, WOFEs), and all are creating growth and success in the U.S. as a result © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comCommon Traits Identified in Successful U.S. Manufacturers: Common Traits Identified in Successful U.S. Manufacturers All of these companies are committed to excellence across the enterprise, not just as a buzzword but as a functional, deliberate and measurable business practice. Whether operating internationally or not all of these companies are exercising a strong commitment to good, old-fashioned operational excellence as a key foundation of their success. These companies directly engage in marketing and market research – the benevolent U.S. market anomaly of the last 50 years is over © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comExample Strategies from Case Studies: Example Strategies from Case Studies Attitude of positive outlook rather than anger about global business conditions. “Daily attitude ‘adjustments’ shared with staff to keep the organization from falling prey to the discouraging headlines our industry and the global economy creates” Evolution in the recognition that “The world will not wait for your company. Take a ‘reasonable risk’ and help the company to evolve into something better (and typically different) than it used to be” © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comExample Strategies from Case Studies: Example Strategies from Case Studies Sharing all of their metric tracking with their clients and engaging in “value engineering redesign” to create new opportunities for their products through the conversion of designs from other production methods Harnessing offshore inputs for local competitive advantage, using global experience to conduct a successful “U.S.-China balancing act” © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comExample Strategies from Case Studies: Example Strategies from Case Studies Build a business network of alliances and partnerships to remain in alignment with the global movements of their clients. Remember that trade flows both ways, not just inbound, and pursue more exports Recognize that resistance to change and globalization is not unique to people in the U.S. Look for and capture crossover opportunities to other sectors and categories © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comFour Fundamental Changes: Four Fundamental Changes Attitude Marketing Collaboration Products & Processes © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comStrategic Overshoot: Strategic Overshoot The tendency to decide to operate in another country, often China these days, before careful analysis of the actual business and market conditions rationalizes the decision The real solution is often much closer to home © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comThe U.S. Doesn’t Import Too Much…: The U.S. Doesn’t Import Too Much… …We Export Too Little © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.comGlobal Manufacturing: Myth, Reality & Strategic Options: Global Manufacturing: Myth, Reality & Strategic Options Offshore Group - 12th Annual Manufacturing in Mexico Summit October 20, 2006 Michael L. Hetzel, VP/Americas Pro QC International www.proqc.com © 2006 M.L. Hetzel As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com