DRAFT MINUTES 2015-2016 BOARD OF GOVERNORS New York, …

DRAFT MINUTES 2015-2016 BOARD OF GOVERNORS

New York, NY April 14-15, 2016

ITEM 20. Call to Order

21. Adoption of Agenda

22. Announcements

23. Report on Closed Sessions

24. Discussion Items

25. Items for Receipt

26. Items for Action

27. Dates of Future Meetings

28. Contingency Time

29. Adjournment

2015-2016 Board of Governors April 14-15, 2016 Meeting Minutes Page 2 of 7 LIST OF APPENDICES

I Strategy Update

II Follow Up from International Visits

III Discussion on Committee on Strategy & Planning

IV Summary of the Market Environment

V FY17 Aspirations and Retreat Discussion

VI Insights from Executive Director/FY17 Outcomes

VII Sector Management Committee Report

VIII Pension Plan Contribution- Cash Transfer

IX COFI Recommendation on Dues Adjustments

X Proposed Appointments

XI Deferred Compensation Plan Amendment

2015-2016 Board of Governors April 14-15, 2016 Meeting Minutes Page 3 of 7

DRAFT MINUTES 2015-2016 BOARD OF GOVERNORS

New York, NY April 14-15, 2016

20. Call to Order:

On April 14, 2016, a meeting of the Board of Governors of the American Society of Mechanical Engineers was held in New York, NY. A quorum being present, the meeting was called to order by the President at 3:15 PM ET. The meeting continued on Friday, April 15, 2016 at 8:00 AM ET. Attendance was as follows:

Board of Governors President: Julio C. Guerrero Immediate Past President: J. Robert Sims President-Elect: K. Keith Roe Governors: Bryan Erler, Urmila Ghia, John E. Goossen, Caecilia

Gotama, Sriram Somasundaram, Stacey Swisher Harnetty, Andrew C. Taylor, John M. Tuohy, William M. Worek

Other Officers Senior Vice Presidents: Robert E. Grimes, Technical Events and Content Paul D. Stevenson, Student and Early Career Development Secretary and Treasurer: James Coaker Executive Director: Thomas G. Loughlin Assistant Secretary: John Delli Venneri Assistant Treasurer: William Garofalo Board of Governors Elect Mahantesh Hiremath Karen Ohland William J. Wepfer Senior Vice President Elect Richard Marboe Board Committee Chairs Victoria Rockwell Committee on Finance and Investment (COFI) Corporate Counsel John Sare

2015-2016 Board of Governors April 14-15, 2016 Meeting Minutes Page 4 of 7 Other Guests Leila Aboharb SECD, Community Development Team Kenneth Balkey ASME Foundation Board Member Emily Boyd PAO, Nominating Committee Piero Colonna TEC, IGTI Board Alejandro Dominguez S&C, Member, Subcommittee on B30 Standards in Spanish Marc Goldsmith Chair of VOLT, Past President (2012-2013) Mindy Grinnan PAO, Committee on Government Relations Emamul Haque BOG ECLIPSE Intern Tom Kurfess PAO, Committee on Government Relations Twishansh Mehta SECD, Community Development Committee Frank Michell TEC, Energy Conversion & Storage Segment Michele Miller Committee on Engineering Accreditation Manesh Nair S&C, ECLIPSE Intern to Council on S&C John Parker Past President (2000-2001) Dan Peters TEC, Energy Sources and Processing Segment Kyle Richter TEC, Petroleum Division Bernie Hrubala Past Governor Terry Shoup Past President (2006-2007, via phone) Derek Stack SECD, Community Development Team Tim Simpson TEC, Design, Materials and Manufacturing Segment Nathan Taylor SECD, Human Powered Vehicle Challenge Committee Briana Tomboulian PAO, Committee on Government Relations Mark Webster S&C, Board on Safety Codes and Standards Merya Zgheib SECD, Community Development Team Staff Ben Bahner Electronic Publishing, Editor William Berger Managing Director, Standards Keith Bloesch Managing Director, Financial and Project Reporting Clare Bruff Manager, Volunteer Leadership Development Peter Cestaro Director, Benefits & Payroll Paul Cleri Director, Technology Development Michael Cowan Director, Public Information Philip DiVietro Managing Director, Publishing

Noha El-Ghobashy Associate Executive Director, Programs & Philanthropy Elena Gerstmann Deputy, Executive Operations John Falcioni Director, Editorial ME Magazine Nick Ferrari Director, Publishing Development & Media Sales Peter Hess Managing Director, Marketing Michael Ireland Associate Executive Director, Engineering

John Koehr Managing Director, Technology Research & Business Development Michael Kreisberg Director, Membership Development Elio Manes Director, GPS Michael Merker Associate Executive Director, Standards & Certification Patrick O’Connell Managing Director, Information Technology Jackie Oppenheim Director, Training & Development Jeff Patterson Associate Executive Director, Marketing Sales

2015-2016 Board of Governors April 14-15, 2016 Meeting Minutes Page 5 of 7 Allian Pratt Project Director, Executive Office Laurel Raso Associate Executive Director, Human Resources & Facility Operations Luis Rodriguez Associate Executive Director, Technology Services Karen Russo Project Manager, Executive Office Svetlana Shaknes Director, Market Intelligence David Soukup Managing Director, Governance Elizabeth Sumpter Administrator, Board Operations Gemma Tansey Director, Special Projects Roger Torda Manager, Communication, Projects & Initiatives 21. Adoption of the Agenda: The Board

VOTED: to adopt the agenda as circulated on April 1, 2016. 22. Announcements: The President welcomed all to the meeting and acknowledged Andrew Taylor for his efforts in

becoming a Fellow. The President also announced that the Board will be participating in a self-assessment conducted by BoardSource.

23. Report on Closed Sessions President Guerrero reported on the following Closed Sessions of the Board: At the January 20-21, 2016 Closed Session, the Board

o Was introduced to the Executive Management Team by Tom Loughlin o Heard the Board delegation leads discuss the international trip visits to China, India,

and Latin America o Received information on the Trip Findings report o Received an update on Strategy o Received a report from Corporate Counsel

At the February 11, 2016 Closed Session, the Board

o Received FY16 Q2 Performance and Executive Director Update o Received EDESC Summary of ED performance in Q2 o Approved Mid-Year Executive Director Performance Review Letter o Received the Sector Management Committee Report o Received a report from Corporate Counsel o Received a report from the Committee on Honors on its Rules of Award o Approved the Minutes of the Board meeting on November 14, 2015 o Approved appointments recommended by the Committee on Organization and

Rules o Approved By-Laws B4.2.2.4, and B5.2.5 for Second Reading o Approved New Society Policy P-15.13 o Approved Pension Plan Documents

At the April 6, 2016 Closed Session, the Board

2015-2016 Board of Governors April 14-15, 2016 Meeting Minutes Page 6 of 7

o Approved actions on a legal issue

At the April 14, 2016 Closed Session, the Board o Approved an HR item o Received FY16 Incentive Update and Year end-projections o Received a report on the FY17-19 Budget Targets o Discussed the Per Diem Allowance o Received an Audit Committee Update o Received the notice of the appointment of S&C SVP Candidate for 2017-2020 o Received a report from Corporate Counsel and General Counsel

24. Discussion Items: The Board VOTED: to move into open session, as if in the Committee of the Whole. The Board heard reports concerning and discussed the following items: Strategy Update by John Goossen and Michael Ireland (Agenda Appendix 2.3 and Minutes

Appendix I); Follow up from International Visits by Julio Guerrero (Minutes Appendix II); Discussion on Committee on Strategy and Planning by Julio Guerrero (Minutes Appendix III); Sector Management Committee Report including IGTI and HT Division update by Keith Roe and Bobby Grimes (Agenda Appendix 4.1.1 and Minutes Appendix VII); Summary of the Market Environment by Jeff Patterson (Minutes Appendix IV); FY17 Aspirations and Retreat Discussion by Keith Roe (Minutes Appendix V); and Insights from Executive Director/FY17 Outcomes by Thomas Loughlin (Minutes Appendix VI).

Following the close of the Discussion Items, the Board VOTED: to move into formal session. 25. Items for Receipt: The Board VOTED: to receive the following item: (1) Sector Management Committee Report

(Agenda Appendix 4.1.1 and Minutes Appendix VII). 26. Items for Action: The Board

VOTED: to approve the following items: (1) Pension Plan Contribution- Cash Transfer (Agenda Appendix 4.2.2 and Minutes Appendix VIII); (2) COFI Recommendation on Dues Adjustment (Agenda Appendix 4.2.3. and Minutes Appendix IX); (3) Proposed Appointments (Agenda Appendix 4.2.4.1 and Minutes Appendix X); (4) Deferred Compensation Plan Amendment (Agenda Appendix 4.2.5 and Minutes Appendix XI).

27. Dates of Future Meetings. The Board approved meeting dates and times as follows: DATE DAY TIME LOCATION

2015-2016 Board of Governors April 14-15, 2016 Meeting Minutes Page 7 of 7 June 6, 2016 (a) Monday 9:30 AM – 4:30 PM (ET) Louisville, KY

June 8, 2016 (b) Wednesday 10:00 AM – 3:00 PM (ET) Louisville, KY

September 8, 2016 (b) Thursday 1:00 PM – 5:00 PM (ET) New York, NY

September 9, 2016 (b) Friday 8:00 AM – 1:00 PM (ET) New York, NY

November 12, 2016 (b) Friday 8:30 AM – 4:30 PM (MT) Phoenix, AZ

February 9, 2017 (b) Thursday 12:00 PM – 2:00 PM (ET) Web conference

April 20, 2017 (b) Thursday 1:00 PM – 5:00 PM (ET) New York, NY

April 21, 2017 (b) Friday 8:00 AM – 1:00 PM (ET) New York, NY

(a) 2015-2016 Board of Governors (b) 2016-2017 Board of Governors

28. Contingency Time: The Board discussed training, validation of software, and integrating

standards into the engineering curriculum. 29. Adjournment: The meeting was adjourned on Friday, April 15, 2016 at 11:45 AM ET.

____________________________________ James Coaker Secretary

Strategy Update to Board of

Governors

April 14, 2016

Minutes Appendix I Page 1 of 32

Agenda• Quick review of the strategy – John

Goossen• Technology Selection Process

Update – Mike Ireland• Integrated Operating Plan – Mike

Ireland• 10-3-1 Process – Mike Ireland• Communication – Mike Ireland• Q&A – John and Mike


Strategy Task Force• Monitoring progress every two to three weeks. Includes:

– John Goossen– Andy Taylor– Caecilia Gotama– Urmila Ghia– Jack Tuohy

• Advisors– Stacey Swisher-Harnetty– Reggie Vachon

• Other Participants– PET – EMT


Quick Review of Strategy


Enterprise Strategic Goal (Based on need to focus, integrate and remain relevant)

ASME will enhance its relevance and impact to global constituents by being the leader in advancing engineering technology.


Enterprise ObjectiveBy 2025, ASME is called upon to be the go-to organization to help address key technology-related challenges in the public

interest in a manner that engages core engineering constituencies (government, academia, industry, engineers,

students, and technology-development professionals);

to increase its mission impact as measured by reliable metrics, including growth in donations and program revenues of at least 100%; and to diversify its revenue streams so that

50% or more of all revenues derive from new and existing sources other than Standards and Certifications


After We Select Technology Portfolio

Technologies Energy Manufacturing Healthcare Transportation Others

Technology A IndustriesGeographiesConstituentsSolutions

Technology B

Technology C

Technology D

Other ASME Technologies

Market Segments


Three Tiers of Tactics

1. Becoming more market facing2. Developing business

development competency and product sophistication

3. Engaging our stakeholders and delivering value


Becoming More Market Facing

Tactic One: Selecting Technologies

Develop competency in creating a structure and methodology for the evaluation, selection and monitoring of a technology portfolio utilizing internal and external resources;

– Strategy Alignment: Technology Portfolio


Technology Selection Process

April, 2016


The Technology Selection Process

STEP D: 6-10 TECHNOLOGIES TO 3-5 FOR BOARD APPROVAL

PARAMETERS: Industry, geographic and constituent needs

STEP C: 24-30 TECHNOLOGIES TO 6-10

PARAMETERS: 24 factors identified on Decision Matrix

STEP B : 50 TECHNOLOGIES TO 24-30

PARAMETERS: ASME relevancy, market direction, achievability of success, potential content and revenue

STEP A: UNLIMITED NUMBER OF TECHNOLOGIES TO 50

PARAMETERS: Mission relevancy, ME relevancy, market size/growth

Jan 1

Feb 1

April1

June 1

We are

here


Highlights to this point• Followed methodology approved by Board• Surveyed all members and qualified content

contributors• Met with Division leaders for all-day strategy

symposium• Technical Advisory Panel (TAP) selected by SMC,

met all-day in NYC• Met with IAB and MEDH• Narrowed to top 13 technologies and identified key

enabling technologies


TAP Consensus:Technology TAP

RankingManufacturing(1) 1Robotics 2Gas Turbines 2Renewable energy(2) 4Autonomous/Unmanned vehicles 5Bioengineering 5Nuclear power 7Distributed generation 8Pressure technology 9Environmental engineering 10Smart grid 11Energy efficiency 11Aerospace 13

(1) “Additive Manufacturing/3D Printing” and “Digital Design and Manufacturing” are included under Manufacturing(2) “Energy Storage” is included under “Renewable Energy”

• The TAP also categorized the technologies below as “enabling” or “cross-cutting,” with wide-reaching applications and impact across the top technology categories chosen for focus. These enablers will be explicitly considered as part of the remaining analysis of the chosen technology categories and, ultimately, in the overall implementation of ASME strategy moving forward: Internet of things/Industrial Internet Big data analytics Artificial intelligence Cybersecurity STEM education Materials Nanotechnology Design engineering


In June – Top 3-5• Evaluate each technology based on key parameters, including in-depth

SWOT analysis – Map to markets– Identifying key stakeholder companies and organizations – Identify geographic areas of concentration and growth and ease of

entry– Potential competition to ASME– Other potential threats to success such as geopolitics, market stability,

mergers, regulatory adoption, IPR, or digital consumption (e.g., IBR or Open Source issues).

– Assess portfolios in each technology area to see how we line up with the generic strengths and weaknesses.

– Potential growth for ASME– Incorporation of:

• All quantitative analysis• TAP and other volunteer group feedback• Board trips


What Comes Next?• Over the next two months we will be learning a lot about each

remaining technology– Who are the key industries in each market that utilize the

technology?– Where are they around the world and in what stage of

development?– What are the needs of industry, academia and government

relative to these technologies?– How do are strengths and weaknesses align to the

opportunities and threats?• By June, The staff will complete the basic components of the

Integrated Operating Plan, which details how we will operate together cohesively and more effectively


What Comes Next?• By Summer, the staff will be organized into matrixed teams to

discuss:– How does the current product portfolio align to those needs?– What new products need to be developed?– How are K-12 and Student programs aligned?– What needs to be within an integrated marketing and sales

plan?– What needs to be in a media (digital, print and face-to-face)

plan?– Who are the volunteer partners with whom we need to align to:

• Provide voice of the customer feedback?• Serve as subject matter experts in product development?• Facilitate C-suite-level discussions?• Engage in community and participate in activities?

• Development of key plans to present to Board


Plan LexiconIntegrated Operating

Plan

•How we align to and implement strategy throughout the enterprise

Marketing and Sales

Plan

•How we market and sell an integrated portfolio of products to core constituents in vertical markets

Media Content Plan

•How we become a thought leader in the technologies we select through print, digital and face-to-face media

Business Plan

Privileged and confidential 17

•Plan for a new or existing product including alignment to technology and market, ROI, development process and cost, KPIs


Example of the Process if we Select Manufacturing


Part One: Examination of the Market• Customer Needs for Industry

– Understanding of new “enabling” technologies (IOT, big data, AI, cybersecurity, etc.) and how they affect manufacturing processes

– Current engineering training in X– Operator needs training in Y– My supply change needs help understanding Z– New employees lack hands-on skills and need management

development– Engineers need multi-disciplinary skills and digital background– Engineers need to be able to analyze big data and find trends and

opportunities – India operations are expanding rapidly we and plan to Africa is the

next frontier– I don’t know how to validate my product in a world where I can take

it from design to market in months instead of years


Part One: Examination of the Market• Customer Needs for Government

– Coordination of existing manufacturing innovation Institutes– Dissemination of information and commercialization from

institutes– Formation of new institutes– Specific needs of DOD, DOE and NIST

• Customer Needs for Academia– How do we publish with new open source rules?– Show me the money for research– There is traction around the concept of a possible “Digital

Engineering” discipline– Kids these days …

• Etc.


Part Two: Aligning the Portfolio to NeedCodes and Standards

Conformity Assessment

Training Conferences and Events

Membership Student and STEM Programs

Publications Honors and Awards

43 Codes align 4 programs align

27 courses align

2 Events align 27,000 membersin targets

2 programs align

2 Journals and 23 books align

4 R&D awards

Adjust 3 exiting standards

Adjust 1 program

Adjust 11 programs

Adjust 1 event N/A Adjust 1 program

Adjust 1 Journal

Adjust 1 Award

Create New process validation product

Create 3 new conformity assessment programs

Create a job skills matrix for the digital engineer.Partner with universities and community colleges to develop a series of digital and f2f hands-on courses

Create a manufacturing technology trade show and symposium designed for IndustryCreate regional conferences in LA, ME, Europe and Asia

Create a new membership engagementmodel. Target manufacturing engineering with content, community, career advancement and opportunities to contribute.Create manufacturing technical chapters around the world.

Turn Maker-Hacker into Design Builder through K-12 competition assigning local mentors

Big Data app competition

Figure out an open-source model thatrewards authors and protects ASME investmentCreate 3 new Journals and add 7 books to digital library

Create 3 new manufacturingawards for Industry to be presented at Technology Conference.


Part Two: New Types of Products• Stand-alone ASME Training and Research Institute or hosting

an NNMI Institute• Partnership with research labs• Tie ASME Sections to collaborate with NIST Manufacturing

Extension Partnership (MEP)• Partnership with tech shops/maker hacker labs or create ASME

workshops, utilize local sections• ASME Manufacturing Technology You-tube channel • Collaboration or mergers with other manufacturing

organizations


Each Product has a business plan that aligns to strategy and 10-3-1 approach

• Development process and investment required

• ROI over ten years• KPIs over ten years


Development Process by Product• Every product has development timeline in

business plan• Cost and ROI

New Membership Campaign


Product KPIs/Outcomes• These are tracked across ten years and are tied to budget

goals

– Percentage Growth of International Members

– Percent Growth of Members Under 40 years old

– Number of Members with Manufacturing Select as Interest

2017: 2% 2018: 3% 2019: 3% 2020: 4% 2021: 4% 2022: 5% 2023: 5% 2024:6% 2025:7%

2017: 1% 2018: 2% 2019: 3% 2020: 4% 2021: 5% 2022: 5% 2023: 5% 2024:6% 2025:6%

2017: 1k 2018: 2k 2019: 4k 2020: 8k 2021: 15k 2022: 30k 2023: 50k 2024:75k 2025:100k


Part Two: Aligning the Portfolio to ResourcesCodes and Standards

Conformity Assessment

Training Conferences and Events

Membership Student and STEM Programs

Publications Honors and Awards

ExpectedCosts:2 million over 3 years

Expected Costs:1 million over 3 years

Expected Costs:1 million over 3 years

Expected Costs:1.5 Million over 3 years

Expected costs: 1m over 3 years

Expected costs: 1m over 3 years

Expectedcosts: 500k over 3 years

Expected costs:minimal

Expected net return: 10 million over 20 years

Expectedreturn:10 million of 10 years

Expected return: 10 million over 10 years



Expected net: (4 million) over ten years

Expected net: 5 millionover 10

years

Expected net:0

Net savings of efficienciesand sun setting: 1.5m

Net savings of efficienciesand sun setting: 1m

Net savings of efficienciesand sun setting: 1m

Net savings of efficiencies and sun setting: 500k

Net savings of efficiencies and sun setting: 100k

Net savings of efficienciesand sun setting: 250k



High Risk High Risk Low Risk Medium Risk

Low Risk LowRisk

Medium Risk

Low risk

High Return

HighReturn

Medium Return

HighReturn

Medium Return

Noreturn

Medium Return

Low Return


Market Plan Total: Advanced Manufacturing Margins by Product

-2

0

2

4

6

8

FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

Margin of Individual New Advanced Manufacturing Products

Code CA T&D Conf Memb SEC Pubs


Part Three: Development of a Marketing and Sales Strategy

• Describe ASME branding strategy as thought leaders in manufacturing technologies

• Target key constituents in manufacturing space with whom to build relationships. Begin at top (Exec Director to C-suite) when possible

• Develop marketing strategy to core constituents in key geographies, customized locally

• All manufacturing solutions are bundled, campaigns are coordinated

• Additional anticipated cost: $1M


Part Four: Development of Media Strategy

• The majority of digital, print and face-to-face content is geared towards the energy and manufacturing market. Ramp up digital delivery of video and other media.

• Content is targeted for constituent consumption, particularly individual members versus institutional needs.

• Increase media sales force for increases in advertising, sponsorship, sponsored content and exhibitor revenue.

• Media will contain content marketing for ASME, where appropriate

• Media calendar will coordinate and synergize efforts• Additional anticipated cost: $1m• Ten year margin in new advertising/sponsorship: $5m


Possible ask: Based on alignment to strategy and business plans developed for each product/program area in the manufacturing segment:

$10m ask over next 3 years yields net of over $65m in new revenues (and savings) on top of CAGR for current products


The Investment• “Strategy without funding leads to a train

wreck”• The strategy is unfunded in the current 17-19

budget. • We will develop the comprehensive ask, but…• We also hope to find a funding mechanism

that doesn’t put us into a deficit budget and doesn’t put our operating reserves at further risk.


Next• June, 2016

– Technology Selection• Market Reports (50-100 pages for each technology)• SWOTS (including potential product alignment)• Comparisons and Rankings

– Framework for IOP• September, 2016

– Pilots• Manufacturing

– Business Plans– Marketing and Media Plans– Investment Ask

• Engagement tied to strategy– International Growth– Under 40– Manufacturing market segment


ASME Board of Governors International Delegations

Reaching Across the Globe for Inspired Cooperation

MARCH 2016

Minutes Appendix II Page 1 of 163

Table of Contents I. Executive Statement ............................................................................................................................ 1

II. Introduction ............................................................................................................................................ 2

III. Purpose .................................................................................................................................................... 3

IV. What We Learned ................................................................................................................................. 5

Key Perspectives from Peru......................................................................................................... 9 Key Perspectives from India ...................................................................................................... 11 Key Perspectives from China .................................................................................................... 15

V. Potential Opportunities ...................................................................................................................... 17

Global Strategy ........................................................................................................................... 17 South America and Peru ........................................................................................................... 18 India ............................................................................................................................................... 21 China ............................................................................................................................................. 23

VI. Governors Summary Report .............................................................................................................. 25

Key Findings ................................................................................................................................. 25 Common Threads Across the Regions .................................................................................... 27 Further Ideas for Consideration ................................................................................................ 27 Near-Term Opportunities ........................................................................................................... 28 Expansion of “Threads” Section ............................................................................................... 30

VII. Report Appendices............................................................................................................................. 32

Appendix A1 – Peru Delegation Book .................................................................................... 32 Appendix A2 – India Delegation Book ................................................................................... 44 Appendix A3 – China Delegation Book ................................................................................. 60 AppB-1a Peru Trip Notes – Keith Roe ...................................................................................... 70 AppB-1b_Peru Trip Notes Cross Referenced – Julio Guerrero & Bill Worek ...................... 77 AppB-1c_Peru Trip Notes – John Falcioni ............................................................................... 88 AppB-1d_Peru Trip Notes-Opportunities – John Falcioni ..................................................... 98 AppB-1e_Peru Trip Article HBR ................................................................................................ 101 AppB-1f_Peru Business Cards .................................................................................................. 110 AppB-2a_India Trip Notes – Roe ............................................................................................. 114 AppB-2b India Trip Notes Condensed – Michael Rovins ................................................... 129 AppB-2c India Trip Notes – GE – Rovins/Sharma................................................................. 130 AppB-2d India Trip Notes – IISc – Rovins/Sharma ................................................................ 131 AppB-2e India Trip Notes - Institution of Engineers – Rovins/Sharma .............................. 132 AppB-2f India Trip Notes - Larsen and Toubro – Rovins/Sharma ...................................... 133 AppB-2g India Trip Notes – Reliance – Rovins/Sharma ...................................................... 134 AppB-2h India Trip Notes – Tata – Rovins/Sharma .............................................................. 135 AppB-2i India Trip Notes-Thursday and Friday – Rovins/Sharma ...................................... 136 AppB-3a China Trip Notes – Keith Roe .................................................................................. 139 AppB-3b China Trip Notes – Jack Tuohy .............................................................................. 151 AppB-3c China Trips Notes – John Goossen ........................................................................ 156 AppB-3d China Trip Notes – Mark Sheehan ........................................................................ 158


I. Executive Statement

To the ASME Board of Governors

It is with great appreciation that we salute each member of the respective Board of Governors international delegations for the time, effort and full engagement given these important trips that we took in 2015 to Peru, India and China.

Your involvement helped us bring back valuable feedback that will make for more informed Board decisions going forward. During these trips we made new contacts, solidified existing relationships, and further spread word of the great work of ASME, its volunteers and staff.

Based on the content of the report that follows—what we observed and what we learned—we look forward to a spirited Board conversation at our upcoming January meeting this month. But the impact of these trips will not end with our meeting. In fact, the work of strategizing an expanded international footprint is just beginning.

Together, at our upcoming Board meeting, we will examine the opportunities we have observed during the visits and strategize about what have learned. At each of the delegations’ stops, we communicated that the Board was going to evaluate the opportunities vis-à-vis ASME’s resources and our strategy. This report will help all of us converse about next steps, which may include further exploration through a deeper analysis of the regions we visited.

We want to emphasize that our global outreach work must be in line with the strategy that the Board approved recently. In fact, the work of the delegations represents one important tool to inform the strategy work—especially as it relates to technology selection and evaluation.

Organizationally, we are committed to global growth. The international trips initiative began because we understood the importance of giving Board members an on-the-ground perspective of key international markets. While we initiated these trips during the tenure of President Julio C. Guerrero, this initiative to more deeply understand our opportunities throughout the world will continue during the upcoming term of President-Elect K. Keith Roe, and in years to come.

Thank you for all the good work you do on behalf of ASME.

Julio C. Guerrero K. Keith Roe ASME President ASME President-Elect 2015-2016 2016-2017

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II. Introduction ASME is a world renowned not-for-profit membership organization that enables collaboration, knowledge sharing, career enrichment, and skills development across all engineering disciplines. It is an organization with deep roots that extend beyond the borders of the United States.

True to the underpinnings of its formation, ASME’s goal is to help the global engineering community develop solutions that benefit lives and livelihoods—and the Society fulfills this role in many different ways. ASME was founded in 1880 by a group of leading industrialists. It has grown through the decades to include more than 140,000 members in 151 countries. About 30,000 of these members are students. ASME operates with an annual budget of $130 million. Almost half of this budget comes from activities in North America, the other comes from activities held in the rest of the world.

ASME’s members are as diverse as the engineering community itself. They range from industry leaders, corporate executives, project managers, researchers and academic leaders to college students and early-career engineers. ASME serves this wide-ranging technical community through quality programs in continuing education, training and professional development, codes and standards, research, conferences, publications, government relations and through other forms of outreach, products and services.

In 2015, the ASME Board of Governors acknowledged the significance of previous Boards’ initiatives to establish ASME as an international enterprise and the importance of the ongoing efforts by staff to achieve this goal. Recognizing the responsibility to support these efforts, the Board determined to embark on a, first-of-its-kind, series of international visits to three countries situated on the Pacific Rim: China, India, and Peru. The goal was to bring back firsthand knowledge in order to better inform the full Board in its deliberations and directives going forward.

China and India were obvious selections, given the burgeoning economic opportunities of these countries and that ASME currently has offices in these two locations. Peru was selected because its economic and geopolitical standing in Latin America provides a strong benchmark for opportunities available to organizations such as ASME in South America. In 2011, Peru was recognized as one of the world’s fastest-growing economies. Currently, ASME has sales representatives in Peru who also represent the Society in other parts of South America. The Board further determined that Peru would be an appropriate location to demonstrate the international nature of ASME because 2015-2016 ASME President Julio C. Guerrero has engineering inroads in that country, since he was born and raised there.

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III. Purpose The purpose of these trips was for the ASME Board of Governors to have a first-hand understanding of global opportunities in these regions and “to embrace them,” according to President Guerrero, who spearheaded the delegations. “Our goal was to renew friendships and build on existing relationships. We are eager to reach out to new constituents and create bridges enabling mutual cooperation.”

Each delegation made clear to all the invited participants in each country that they were Board representatives strictly on a high-level, fact-finding mission, and not to promise the implementation of new ASME initiatives or programs.

The specific objectives of the trips were: To stimulate greater ASME participation in global opportunities leading to increased organizational engagement and expand opportunities for mutual growth.

To empower global growth by opening a dialogue with international stakeholders and leaders.

The basis for the unique value proposition of these international visits hinged on a series of one-of-a-kind meetings with global leaders enabled by the high-level stature of the ASME Board of Governors. The expectations were met (see Section III of this document).

The ASME delegations were comprised as follows:

Peru – ASME President, Julio C. Guerrero; ASME Executive Director Thomas G. Loughlin; President Elect K. Keith Roe; Governors Bryan A. Erler, Andrew C. Taylor, and William Worek (the Board’s Peru delegation lead). John G. Falcioni, ASME Editorial Director & Editor-in-Chief of Mechanical Engineering magazine was the staff point person for the Peru trip.

India – ASME President, Julio C. Guerrero; ASME Executive Director Thomas G. Loughlin; President Elect K. Keith Roe; Governors Urmila Ghia (the Board’s India delegation lead), and Sriram Somasundaram. Michael Rovins, ASME Director of Customer Sales and Service, was the staff point person for the India trip. Madhukar Sharma, ASME Marketing Manager based in India also participated.

China – ASME President, Julio C. Guerrero; President Elect K. Keith Roe; Governors, John Goossen, Caecilia Gotama, and Jack Tuohy (the Board’s China delegation lead). Mark Sheehan, ASME Managing Director, Development, Standards & Certification, was the staff point person for the China trip. China-based ASME Chief Representative Qiang (John) Zhang also participated.

The three trips were held during October and November 2015. In each visit, the delegation interacted with individuals representing each of the following communities:

1. Industry, including American corporations doing business in each of the target countries. 2. Relevant professional organizations in the respective countries. 3. Academic leaders and other relevant educators. 4. ASME volunteer leaders and other members in the respective regions. 5. Key influencers.

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For a complete set of each trip’s agenda, plus a listing of the invited participants, please see Appendix A. The meetings were intended to provide mutual benefit to ASME and to the participants. For ASME, the benefits included:

• Enhance connections. To better understand how the vision of regional leaders connects with ASME’s own mission and goals and to discover, through conversations, paths to further mutual goals.

• Discovery. To better understand the engineering challenges and opportunities in the Pacific Rim regions visited.

• Growth. To learn how ASME can leverage its current standing and become more relevant in the regions.

• Substantiate. To understand, first-hand, how ASME’s existing activities and global outreach strategy are perceived and evaluated.

• Communicate. To hold insightful conversations with influencers that will lead to informed new global outreach and networking opportunities for the Board and for ASME.

• Build relationships. To help broker new international relationships. For the local and regional engineering community that participated in the discussions, as well as the government and other participants, the benefits included:

• Communications. To build a lasting communications bridge with ASME’s Board. • Collaboration. To understand the broad potentials and benefits for collaboration with

ASME. • Networking. To connect to the worldwide technical community through ASME’s channels

and thus broaden local exposure beyond regional borders. To expand the opportunities for local engineering graduates to outreach to the international scientific, technical, and academic communities through ASME’s networks.

• Content. To access and contribute to the extensive technology content available through ASME’s networks.

• International reach. To expand the opportunities for international exposure by participating in the work of codes and standards.

• Access to innovators. To expand the opportunities to connect with innovators who are developing emerging technologies that can help regional industrial development.

• Information dissemination. To expand the opportunities to showcase globally the technology solutions developed locally.

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IV. What We Learned The diverse conversations held by the respective delegations in each country provided a distinct benefit to the ASME Board of Governors. The trips delivered valuable insight that, moving forward, will lead to more informed decision-making and a positive, long-lasting impact to ASME in matters of global growth.

The trips generated important takeaways for ASME. Taken together, the three trips:

Provided important new information that could lead to implementation of potential strategic tactics by ASME staff;

Provided important validation of the high value of ASME’s existing products, services, and ASME’s cachet around the world;

Provided important affirmation of the ASME Board’s recently approved enterprise strategy.

Specifically, in its strategic goal to enhance ASME’s relevance and impact to global constituents by being the leader in advancing engineering technology.

Also in its strategic actions’ goals of managing a balanced, sustainable technology portfolio; strengthening and expanding the solutions portfolio; and enhancing customer engagement around the world by providing high-value products, services and opportunities through a variety of platforms.

Each country visited by the delegations, by its very nature, showed inherent opportunities for ASME, as well as a unique set of challenges based on variables including geography, economy, and demographics. A review of the notes taken during each meeting (please see Appendix B), as well as discussions with members of each delegation shows that several important trends emerged in all three regions:

ASME Standards & Certification – It was clear that ASME’s Standards and Certification is a most dominant international instrument by which ASME can leverage greater influence in the world. Standards & Certification can be the catalyst that opens doors to other ASME programs and services globally.

Workforce – It became clear that matters related to workforce development were dominant in each country and the neighboring region. Namely, the need for a better educated, more skilled engineering workforce pipeline.

Competiveness – It was clear that ASME’s footprint in each region must be maintained or grown and that opportunities for progress exist. That is, there is opportunity to increase a formal presence on the ground. There is also an opportunity to develop an intelligent, properly funded, multiproduct/service regional strategy that builds on a well implemented technology strategy.

Conferences – It was evident that there is strong interest for the creation of local, regional, and global conferences. The sentiment was that conferences provide two critical components to expanding ASME’s imprint and improving its competitiveness:

1. Major conferences are a brand builder. This is true of regional conferences, but even more so for significant international conferences.

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2. Conferences are also catalysts for engaging customers in a range of ASME products and services. Conferences enable training and publishing activities, and provide a forum for networking and the proliferation of section and student activities.

Engineering for Global Development – Although not many formal conversations took place in each location specifically targeting ASME’s Engineering for Global Development sector—and the report does not delve into this area—it became clear by informal conversations, and also through discussions among the delegates, that there is a significant opportunity for ASME to be a global leader in this space. For example, there are opportunities for ASME to work with NGOs in the regions visited, and also to work with local industries and to engage corporate social responsibility initiatives of multinational companies.

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Contextualizing Standards & Certification Activities In order to accurately contextualize the specific findings of these international trips, it is important to understand some current ASME strategies and activities underway. Because ASME’s Standards and Certification program represent a vigorous proportion of ASME’s international portfolio, the following notes focus on this enterprise activity.

Latin America Standards & Certification has established a significant presence in Latin America. Although the number of companies certified by ASME in Latin America is 310, 202 of them are in Mexico and Brazil, as of Q1 FY15. However, the potential for growth is still strong in other countries. Projected growth in Latin America is based on strong membership activities and by the dedication of a small group of individuals committed to ASME. From that foundation, licensed providers for ASME Training & Development courses were identified, and a strong program of training evolved. ASME’s participation in a NIST Standards in Trade workshop resulted in the formation of ASME Standards & Certification committees to develop Spanish translations of key ASME standards. These committees are the first of their kind utilizing local experts to develop ASME published translations of key standards. ASME Boiler Pressure Vessel Section I on Power Boilers, and B31.3 on Process Piping, have already been issued. Others in the works are Boiler Pressure Vessel Sections VIII-1 and IX, B31.1, B31.8 and nuclear standards. Since early 2015, ASME also has a Standards & Certification Liaison in Latin America, located in Mexico. Similar to a Liaison to India, the individual is responsible for monitoring national standards and government regulatory developments that would impact the use of ASME standards in Mexico and in the rest of Latin America.

India Application for ASME certification of companies in India began in the 1980’s, slightly earlier than in China, but the rate of growth has been slower, totaling about 244 shops as of Q1 FY15. The English language is not as much of a problem in India, as most university educated engineers speak English. This is demonstrated by the number of ASME members in India, the third highest number of members outside the United States. Indian industry and regulators are more pragmatic than others in Asia, as they have looked to the most widely recognized international standards to address their needs. India has been using ASME standards, primarily in the Oil & Gas and Nuclear Power sectors, for decades. Regulatory agencies have adopted ASME standards for these industries and recently have expanded references to ASME standards in the newly developed gas transmission and distribution regulations. India is in the process of expanding its fleet of nuclear plants, drawing on designers from all over the world, and those from U.S. designers will be built to ASME standards, as will those built to the indigenous Indian designs. ASME has created ASME India PVT, Ltd., to manage the operations of its India office, which currently consists of three staff. The office has been instrumental in growing ASME’s outreach to engineering students, establishing training and development partners, building a network of volunteers to contribute to Standards & Certification committees, and organizing workshops and conferences in India. Of particular note is the office’s work in organizing the first International Working Groups under the B31 committee in 2009. Subsequently, additional International Working Groups have been formed for Boiler

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Pressure Vessel SC’s I and III. Since 2007, ASME also has a Standards & Certification Liaison in India who is responsible for monitoring national standards and government regulatory developments that would impact the use of ASME standards in India.

China In the mid 1980’s, companies in China began applying for ASME Boiler Pressure Vessel certification, and China has since taken over as the country with the most ASME certified shops in the world outside of the United States, with 858 shops as of Q1 FY15. Relationships with organizations in China began at about the same time and were mostly focused on codes, standards and conformity assessment, but the relationship with the China Mechanical Engineering Society has been more focused on membership. Relationships with academia in China were also developed and all of these relationships have grown stronger over the years. Standards & Certification has strong relationships with organizations in China that are responsible for developing and maintaining translations of ASME standards into Chinese. There is currently one organization in China that has been engaged to serve as an Authorized Provider of ASME training programs, and more are being recruited. The number of experts participating on ASME committees is growing, mostly through the International Working Group program, as well as direct membership. There are currently more than 185 volunteer experts from China serving on ASME standards committees. Numerous workshops and seminars on standards and certification have been conducted in China over the last several years. ASME joined in the Consortium on Standards and Conformity Assessment to open an office in Beijing in 2005, leading to the creation of ASME Asia Pacific, LLC, which opened its representative office in Beijing (BRO) in 2008. The office now includes a staff of four. BRO is essential to maintaining existing relationships and developing new relationships as ASME’s influence in China grows.

As is clear, ASME’s current activities related to codes and standards in these regions is on a steady course.

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Key Perspectives from Peru The general perspective from the trip to South America is that there is a reasonable level of economic activity in the region and that Peru and other South American countries are investing to expand their economies. However, what plagues the region are infrastructure constraints, technical workforce challenges, and the somewhat fragmented nature of the South American market. Combined, these represent challenges to the future growth outlook. Further, a significant shadow economy clouds the development process and the ability to compete on a global level.

Significant infrastructure programs are underway in Peru, and seemingly in other South American countries as well. This infrastructure development represents a need for support and technical workforce training in areas where ASME could add value.

Each country in the region has unique characteristics and different market needs and requirements, although there appear to be some similarities. Each market—as well as the region as a whole—needs careful assessment to understand appropriate levels of investment.

Peru, and apparently other South American countries, have a shadow or informal portion of the economy that is significant (30% in Peru) that does not follow the rules, including using appropriate codes and standards. This is a government issue and seems to create a challenge for economic growth in a global context.

Overall, ASME seems to be well recognized in Peru and in South America, but recognition is a fluid matter. In order to maintain the status quo and grow in the area, ASME needs strong leadership in the region and focus on building even stronger relationships.

• Standards and Certification is an area where ASME has good connections to the region, but even there, challenges exist.

• The largest ASME impact in Peru and the rest of the area is in the codes and standards arena. Industry representatives seem to have the least awareness of ASME outside of codes and standards, even as the program faces challenges relating to government support.

• Those in the academic arena seem well aware of the training and development opportunities that ASME can offer and appear interested in finding a way to take better advantage of ASME’s offerings.

• Other ASME products and services add value but have very uneven levels of awareness and participation amongst the groups the delegation met with in the region.

Strong ties seems to exist between the various countries who consider themselves part of the so-called “Latin American Group of Nations”—these would include Peru, Chile, Colombia, Ecuador, and Panama. These countries appear to have nurtured close relationships with one another. This has resulted in sharing of experiences and opportunities. Further, travel and communications between them is easily facilitated.

Even though it is beneficial to look at South America as a single market in terms of potential market value for ASME, the regional nature of South America requires a multipronged effort to more effectively penetrate different countries. Strong inter-country linkages may facilitate this

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effort, but different laws, and in-country organizations with different priorities, add to the complexity of the effort.

With infrastructure projects and other programs underway in many South American countries, great concern was expressed by stakeholders that there are not enough qualified engineers locally who are familiar with the latest technologies. There is a similar concern that there is an insufficient number of engineering professors qualified to teach emerging technologies.

ASME may be in a position to help address the issue of training and education. The need here is for training on two fronts: First with training of the professionals doing the work; secondly for professional training of professors and other educators.

Overall, South America represents a mix of challenges and opportunities for ASME that reflect the economic regrouping that is underway. To effectively pursue these opportunities, a careful analysis is needed to fully understand the challenges, their potential value, and timing of implementation. Then the investment and payoff to ASME will become clear.

One of the highlights of the Peru trip was a private meeting between the ASME delegation and the U.S. Ambassador to the Republic of Peru, Brian A. Nichols. The meeting was held at the Embassy of the United State in Lima, Peru.

The hour-long meeting provided a thorough exploration of Peru’s political and economic landscape, as well as a hint of the ways in which ASME may have a role in the region. Specifically, the Ambassador said there is a need for increased training and capacity building in Peru, as well as in neighboring countries. Further, the Ambassador hinted that there may be an opportunity for ASME to work with Embassy staff on joint education and scholarship programs.

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Key Perspectives from India As the second most populous country in the world, and with a national priority by the Indian Prime Minister on building infrastructure and improving its global business standing, ASME may be poised to make strong inroads into the relevant Indian market. The confluence of a number of factors appears to make this feasible. The reasons for optimism include: • India possesses a very large market. It is similar in size to China, and it is growing rapidly. • India has political stability, a Western orientation, and degreed engineers are schooled in

English. • For the most part, India accepts and is interested in ASME and ASME standards—unlike

China, India is not a competitor in the standards arena. • India abides by a rule of law. • There are many U.S. educated ASME members who return to India after graduation so there

is a very positive imprint of ASME in India. • India is an increasingly global player in various industries and in technology.

Certainly there are some drawbacks. Primarily, India can be a difficult place to do business in, based principally on government regulations and social factors.

In India, as well as in China, there is an emphasis on engineering and on engineering education. However, there is a stigma, real or perceived, that the level of expertise among Indian engineers may not be at a par with U.S. engineers. To combat this, the Indian government has undertaken initiatives to develop essential and specific engineering skills’ development, focusing on professional development. This provides ASME with an opportunity for collaborative involvement.

By the sheer size of the population, India is a powerful nation. Indian industry is on the rise and world-class industries are prevalent. These include: Reliance, Larsen & Toubro, and TATA. Additionally, multinational companies such as General Electric, Microsoft and others have put down roots in India by building international research and design centers. For ASME, India represents a significant opportunity because the country can be characterized as being in an “S-Curve” development phase, rather than in a later, more mature phase, so there is an opportunity for ASME to stake some ground early in the process.

By and large, the delegation found that ASME’s brand is strong and well respected in India. There also seems to exist a reasonably broad understanding of ASME’s offerings beyond Standards and Certification.

There appears to be strong thirst and receptivity to ASME becoming more engaged in India’s engineering activities, and an apparent willingness from government to enable ASME’s involvement. While ASME has its own niche in the engineering sphere, it has become clear that other engineering organizations, namely IEEE, have been active and in some cases more aggressive in pursuing international markets than ASME. India is no exception.

In the five years that ASME has had an office in India, the organization appears to have made inroads by building strong industry connections and a solid, though modest, presence. ASME appears to have brand recognition in India, good relationships and entry points. But as with any

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large and complicated market, to effectively pursue these opportunities, ASME needs an intelligent strategy. It needs to determine priorities and have an overall plan that optimizes the effectiveness of its investments.

The recently approved Board strategy places a premium on technology and industry. While opportunities in international markets—such as India—remain a part of the equation, there is an understanding that ASME resources must be carefully monitored and deployed vis-à-vis the recently approved Board strategy. Engaging India, China, Latin America, or other regions of the world is part of the mix, but such investments in effort and dollars must be carefully and strategically weighed.

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Can India Really Be the ‘Next China'? Geoffrey Garrett

The bulls say India is the 'next China'. Odds are they are right, if not today then within a decade or so. But even if this proves to be right in terms of growth, India is a very different country than China on many fundamental dimensions, demography and democracy being key. But most importantly, China has been built on infrastructure, investment and manufacturing, while India has barely scratched the surface on all three.

India began its economic reform in the early 1990s, more than a decade after China. But in the past 25 years, China has turbocharged its economy while India has languished in relative terms. Why?

Chinese growth has been driven by some of the world's highest investment rates. This has, in turn, made possible an infrastructure revolution of new cities, high-speed rail lines, airports and ports and manufacturing muscle that is the envy of the world. China has also been the world's factory for 20 years. Its ability to quickly and efficiently move what it produces domestically and around the world has been a critical ingredient in its growth miracle.

Today, India lags far behind China on all three dimensions. India invests about 30% of its GDP, compared with about 50% in China. Manufacturing is about 20% of the Indian economy, compared to China's about 30%. China has arguably the best physical infrastructure outside the western world. India looks more like the poor country that it still is.

But this is a real opportunity for India. Increase investment. Improve infrastructure. Grow economic output. This is a tried and true path to financial growth, and it is one India is poised to follow.

Consider India's vaunted tech sector. We all know about the incredible Indian talent running some of America's tech icons. Google's CEO Sundar Pichai did his undergraduate degree in India before coming to the U.S. for a Stanford Masters and a Wharton MBA. Likewise, Microsoft CEO Satya Nadella received his undergraduate degree in India and followed up with diplomas from U.S. graduate schools. These and so many other Indian-American tech sector executives are testament to the power of the immigration-innovation nexus in the U.S.

However, don't let these rock star CEOs fool anyone into thinking the only way for Indian technologists to succeed is to work in the U.S. for American firms. Homegrown, and still home-centered, companies like Tata Consultancy Services (TCS), Infosys and Wipro are real world leaders when it comes to information technology. And Indian entrepreneurs are killing it today in startups with people like Punit Soni at FlipKart, and Kunal Bahl at SnapDeal.

The growth of Indian tech has been fueled by large-scale private sector investment, from both India and abroad. These companies needed infrastructure to thrive, but the infrastructure was digital, not physical—allowing Indian IT firms to beam information and analysis from India to the world and back, long before anyone was talking about 'the Cloud'. They didn't need to ship widgets because their products were all in bits.

About a decade ago, some optimists thought India could leapfrog over the manufacturing and physical infrastructure stage of development (widgets) to build the whole

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economy around digital (bits). Today, it is clear that while India's tech sector is fantastic and growing, the country will have to develop the old-fashioned way, with better infrastructure and more manufacturing.

What will determine whether India can become a bit more 'Chinese' when it comes to infrastructure and manufacturing? Unlike China, the answer will not be government investment, because the Indian state is hamstrung by endemic budget deficits of big subsidies and limited taxation.

The 'Make in India' initiative is so promising because it does not rely on the Indian government. Boldly launched with a goal of India surpassing China in direct foreign investment, 'Make in India' is a clarion call for global firms to increase their commitment to India. Now, innovative firms as diverse as Samsung, Lenovo and Boeing have publically supported the initiative proving that the private sector is ready to step in.

Yet it seems that the private sector won't act until it is more confident about politics. Nowhere is India more different from China than in the world of politics. But this doesn't mean that India won't go on a growth charge the way China has. The raw material India has to work with is so rich. The challenge now is to catalyze it.

The writer is Dean, Wharton School of the University of Pennsylvania.

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Key Perspectives from China China and Chinese industry have “made an amazing transformation over the past 35 years,” observed ASME President-Elect K. Keith Roe, who was part of all three international ASME Board delegations. In fact, China is on a determined path to be the lead industrial country in the world. The reasons vary and may be expressed in different ways, but the country’s continuing climb upward is clear. This could not have been made more evident to the delegation than by the presentation from the Chinese Academy of Engineering (CAE) on China Manufacturing 2025 (CM2015), and through the companion tour to the China engineering Science and Technology Exhibition. The import of the CM 2025 initiative is a combination of an opportunity for ASME and a threat/challenge.

From a strategy perspective, there is a certain inevitability in the upward climb that China is on, and that should influence ASME’s options. “This is perhaps a reflection of the Chinese cultural philosophy of persistence,” Roe remarked. From a pure market perspective, China represents a major and vital opportunity for ASME, with a number of compelling attributes, and some accompanying challenges.

Some of China’s compelling market attributes include: • Boasting the largest population in the world with many unmet needs.

o China has become one of the leading global developers in key technology areas, and offers ASME exciting opportunities to advance products and services. One example is nuclear power with their very significant growth and new technology development activities.

• A large and dramatically growing infrastructure. • A rapidly expanding workforce, including millions of engineers and technical workers that will

need training, networking, conferences and other support, much of which could be in ASME’s wheelhouse of offerings.

• An active effort by many Chinese organizations to expand their international outreach. • A global player with inroads into many parts of the world.

On the challenges side, China may be a difficult market to penetrate because of: • Language differences—though many Chinese now speak or understand English. • The nature of being China-centric, with a strong, controlling government. • Competition on the standards front—although China, potentially could partner with

ASME in some codes areas. • The well-publicized issues regarding intellectual property and rule of law (although some

of these issues appear to have improved over the recent past).

Today’s China appears to have a much more open environment than in the past. In the Beijing of 1980, for example, literally everyone wore a Mao jacket/suit—from the workers on the street to the high level officials, commented Roe. “Now, in 2015, a very different Beijing has emerged. There is not a Mao jacket in sight. Is it coincidence? I think it is more a symbolic fact of the change in culture that is occurring at a significantly rapid pace. When some of our hosts said China is opening up and interested in collaborating, it seems more than just rhetoric.”

It was revealing to the delegation to see the strong interest that university students showed in interacting with colleagues from the West. This was coupled with a stated desire to become

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members of ASME. There was an apparent recognition by the Chinese guests that the delegation spoke with that they want to collaborate internationally, just as their counterparts from Korea and Japan have done.

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V. Potential Opportunities Global Strategy ASME is active in 151 countries. Thus, it is fair to say that the organization holds a significant global footprint. But it is also clear that there is more the Society can do to increase its impact and relevance globally in support of its mission. This was a point greatly reinforced during the Board trips.

The range and depth of opportunities are significant. What emerged is a recognition that the successful pursuit of the global component of the enterprise strategy will have be built on at least two principles:

1. Regional Market Penetration Strategies – While it is not new, the global strategy first publicly articulated by ABB in the late 1980’s—Think Global, Act Local—seems timely and pertinent to ASME as it undertakes a new global assessment of its enterprise strategy. ASME’s enterprise is global, and technology is global. Therefore, after the Board, with the assistance of staff, determines its enterprise technology focuses, and looks to prioritize the industries it wants to penetrate, there will be an additional need to adapt these technologies to local requirements and needs globally in order to exploit opportunities in various regions.

2. Financially Driven Regional Choices – It was clear by the Board visits that there is a great desire to improve the quality of life and the economic outlook of each region. These improvements include enhancing the local infrastructure and workforce. These are opportunities in front of ASME. But in order to capitalize on these and other global opportunities, careful strategic and financial decisions will have to be made that are tied closely to the technologies and markets/industries that ASME has selected. Foremost, ASME must continue to avoid the trap of providing products and services that are a mile wide and an inch deep. With limited resources and an array of opportunities in front of it, ASME must be disciplined in selecting its areas of regional focus wisely.

Keeping these principles in mind, each of the regions the Board delegations visited offer important opportunities.

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South America and Peru Within the economic context, the potential exists for expansion of ASME activities across a broad range of products and services throughout Latin America. Broad-based activity coordination at multiple levels may be valuable and help grow ASME in the region. Range of interests in South America covers the ASME spectrum, including training, conferences, Standards & Certification, academic exchanges, student sections and competitions, professional sections, publications, etc.

There is an opportunity for ASME to facilitate bringing together the three legs of the stool: engineering department heads, ASME student sections, and professional and early career sections. Currently, both student and professional sections have a sense of remoteness and disconnection from ASME as a whole. There is also a belief that other U.S. professional societies, such as IEEE, can work together with ASME on joint initiatives for mutual benefit in this region.

The ongoing government investment in infrastructure in Peru, as well as in other parts of South America, may offer some opportunity to ASME as well. There is a belief that ASME can facilitate cross sharing at industry, academic, professional and government levels. Local ASME stakeholders share a strong interest and a stated commitment to help support the growth and the coordination of these activities, as long they get support from ASME “headquarters.” There was an expressed sentiment that support from headquarters has subsided in recent years, leading to a feeling that a void in ASME commitment to the region has been created.

ASME has an opportunity to have a more visible presence in South America. There are different ways in which this could be achieved, including establishing a permanent representative in the region that would attend to all matters related to ASME products, services and overall business.

Specific opportunities were discussed in the following areas: Academia Training opportunities for engineers, as seen by both industry and academics, exist • In the areas where megaprojects are developing—such as mining, transportation, oil and

gas. • In upgrading skills and learning new technology developments. • In better understanding ASME codes and standards. • In relevant manufacturing technologies. • In long-term Masters-like courses and short-duration courses.

Other related opportunities, specifically for better teaching tools and methods: • Need better programs to educate in select areas, e.g. a full-year course—or short, intensive

courses—at the undergraduate level in areas like transportation, renewables, relevant advanced manufacturing.

• Need for training in soft skills such as leadership, team building, etc. • There was an expressed desire (and potential opportunity) for ASME to help coordinate

engineering department chairs across South America. This could also help facilitate the coordination of student sections—and local sections—in each country and between countries.

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Codes and Standards ASME’s Codes and Standards are well respected, but there are challenges: • Use of codes and standards is narrow. Exposure and use is focused on specific areas with

little apparent awareness of the broader range of available ASME Codes and Standards. • Many of the stakeholders said they believed that in order to expand use in the region,

certain sections of the codes should be open at no fee in order to “window shop.” • The local ASME section leadership believes ASME’s Codes & Standards can be more widely

used in industries in Peru, including mining, transportation, and power. However, cost is a limiting factor. Codes and standards are often perceived as an unnecessary cost of doing business. This is because many countries in South America appear to work under both a formal economy that uses and abides by codes, employment law, etc., and an “informal” economy that is mostly unregulated. Multinationals and others working under a formal economy, doing mostly large projects, use ASME or other codes and standards. But smaller manufacturers employ a lower grade of standards. This process, typical of many countries in South America, creates significant safety issues. This lack of consistent use and enforcement of use of high-level standards like ASME’s is a major issue to industry. Leaders of industry encouraged ASME to assist in supporting the needed changes in policy, though, in fact, ASME has little true potential to influence this.

Student Sections • The delegation met with impressive young engineering students. Student sections were very

enthusiastic and anxious to get more involved in order to help themselves and to help ASME. They see ASME as an avenue to gain access to technology and to network with subject matter experts.

• The students view ASME student sections as an important way to network with other students and share experiences. There is strong awareness and some engagement with some ASME and other competitions, such as HPVC. They are anxious for more, however.

Professional Sections, Membership, Networking and Professional Development • The delegation heard that opportunities for an expansion of membership in the region exists.

Some of this potential growth could be facilitated by developing MOUs with leading engineering universities in various countries.

• The delegation heard that professional ASME sections exist, but their strength varies and they need more support to thrive.

• The Peru section was up to nearly 1,000 members, but it is now down to about 500. One of the reasons cited is lack of local support and linkage to the larger ASME organization. The former ASME “district” structure was mentioned as helpful.

• A need for more ASME conferences was cited, which would include training. This would also better brand ASME. Stakeholders said that IEEE, in particular, and other organizations as well have a stronger presence than ASME in the region and thus held what stakeholders perceived as a greater commitment to the region.

Conferences Local and regional stakeholders told the delegation that they are anxious to expand national and regional conferences in the region. If configured right, the stakeholders said they see these conferences as important vehicles to expand participation at the student, professional,

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academic and industry levels. Some suggested rotating the location of some of the larger ASME conferences to the region. The rationale was that strong ties among South American countries, and relatively modest travel costs, would generate strong attendance.

Government and Professional Organizations The invited stakeholders told the delegation that awareness of ASME among government entities and professional organizations locally and regional exist, but that IEEE and other organizations are better recognized.

Technology Development Support The following technologies were discussed as important to the region: • Infrastructure, particularly transportation • Oil and Gas • Mining (already a significant industry), although it is slowing gradually • Food processing • Renewable energy • Water supply management • Mechatronic systems • Computer simulation • New materials • Automation • Big Data analytics • Fitness for service • Relevant advanced manufacturing • Others mentioned in passing: IT as applied to education; nanomaterials; biomechanics

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India

From the TMF Group A global business operations services firm

“Not only is India one of the fastest growing countries in the world, it is also going through a period of unprecedented economic liberation, granting overseas investors more access to its vast and varied market than ever. A large, young population and a strong export sector await expanding businesses, with a potential consumer base that far outstrips most other nations in the developed and developing world.

“Political stability and broad consensus on reforms is also a big pull for expanding companies, and the well-developed banking system and vibrant capital market highlight the maturity of its financial system. But doing business in India can still be a troublesome endeavor, and having local help can really make the difference to the success of your venture.”

India provides a range of possibilities for organizations such as ASME. One key to optimizing such opportunities may be in developing and maintaining high-level dialogues, on the executive level, with Indian companies and executives such as Vinod Kumar of General Electric, and Kamesh Gupta of TATA. These relationships could take the form of engaging them in programs such as ASME’s Industry Advisory Board. Expansion of ASME Activities on a Broad Base The large number of ASME members in India provides a strong backbone for expansion of locally based ASME programs and services. These members know and value the organization and they are enthusiastic. Conferences Conferences are a key area for potential expansion within India in two forms: Global conferences that can be rotated to India; and regional and/or local conferences that the region and/or India can organize. The delegation heard that ASME should support local engagement in planning global, regional and India-only conferences. The reason is that on-the-ground organizers understand local customs, costs, culture and issues that would yield a more economically viable conference.

Student Sections The delegation learned that students have a high level of enthusiasm, interest, capability and dedication to ASME. Much like in Latin America and in China, this represents a good opportunity for ASME to capitalize on this interest and energy. But the delegation also learned that ASME must better nurture the student section network. Currently, there are about 8,000 student members in India in 95 ASME Sections. There is a sentiment that the number of student members can grow with a better network and more support from ASME headquarters.

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There was also the sense that faculty in local universities should be better engaged with ASME and that this would generate more student members and student sections.

University Education The three BOG delegations learned that, like in other parts of the world and in the United States, engineering graduates don’t often leave college with the skills that industry needs. A number of companies in India have augmented university education through additional specific skills’ training programs. There may be an opportunity here for ASME to help bridge the skills gap between graduating engineers and the needs of industry.

Professional Sections and Networking It was learned that in some companies in India, such as General Electric, senior level engineers are expected to participate and volunteer their time and skills in professional organizations. This is good news for ASME, as these high-level members would become strong advocates for the Society. This could also open opportunities for engagement, as ASME could develop local chapters in places where it currently has few members.

Professional Development Some companies are starting engineering academies to train engineers, and there may be interest in engaging ASME to help prepare course material. This could serve as a potential entry point for ASME into organizations that it currently doesn’t engage with. Representatives from companies such as Reliance, for example, opined that that having an “ASME trained engineer” is valuable.

Codes and Standards At least one industry executive who spoke with the delegation—General Electric executive Vinod Kumar—noted that ASME could potentially have an important role in the region working with different entities to convene regional standards-setting activities and to help coordinate and update the country’s standards. Executives from other companies agreed.

Membership The delegation heard a consistent message in India that engagement in ASME has fallen off in recent years. Membership could be rekindled with development of meaningful activities in the region.

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China ASME has many exciting opportunities in an evolving China, as the country increasingly—albeit slowly—opens more to the West. This opening gives ASME an opportunity to more broadly build its infrastructure base in China as a platform for expansion.

While opportunities in this country expand, it was clearly evident to the Board members on the trip that ASME is already woven into the fabric of the technical community of this country. It was also apparent in all the meetings that the ASME China representatives here are well recognized and respected. The Society has worked to establish itself over a number of years—some current relationships go as far back as the 1980s. These long-term relationships between stakeholders in China and ASME have created a base of mutual understanding and respect. These efforts have led the way in building today’s trusting relationships that enabled this Board delegation to have fruitful exchanges and conversations.

Because China presents both an opportunity and a threat to ASME’s Standards and Certification work, it was clear to the delegation that students may ultimately hold the key to growth in this broad region. Students nurtured on ASME standards, and networked with ASME global experts, will help point them more naturally to ASME for a broader range of ASME products and services as their careers progress.

ASME should not lose sight that China wants to, and probably inevitably will, become the world’s largest economy and the leading global manufacturer. Thus, China continues to represent an important opportunity.

Standards & Certification ASME’s Standards and Certification sector has had a strong strategy tied to China. Now may be the time to broaden the strategy beyond ASME codes in order to determine ways in which to broaden the ASME footprint in that country. That said, the opportunity for growth of ASME’s Standards and Certification program is strong. This is based on the apparent realization by the Chinese that China’s standards program should not and cannot emanate from the government alone. The multinational and multidiscipline nature of ASME’s codes and standards are well poised to grow in China. Specifically, there may be an opportunity for ASME to work together with the Chinese on developing advanced manufacturing standards. The Board members on the trip repeatedly expressed that for China to gain access to outside markets, it will need to offer products that comply with international standards. It reminded the Chinese attendees that other countries recognize ASME as the gold standard for many manufactured items. Some Chinese representatives noted nationalistic reasons for having their own standards. ASME Board member Jack Tuohy explained that nation-specific considerations are addressed by regulatory bodies within each country, such as the example of the NRC in the United States. Codes and standards are technology based, not nationalistic. The laws of physics are universal, he pointed out. It was clear from the delegation trip that, indeed, advanced manufacturing is a priority in China, as it is in India and in the United States.

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Conferences The area of conferences represents a logical step forward to increase the ASME brand visibility in China. ICONE is extremely well thought of in China, and there’s an opportunity to grow the event’s presence. There are also opportunities to collaborate on other conferences with local entities. Student Sections ASME has an opportunity to develop a student section at Beijing University of Technology. If developed successfully, it could become a model and serve as a springboard for other student sections in Beijing and around China. Engaging students can have both short- and long-term benefits for ASME. The sheer number of students in China represents a significant opportunity to increase engagement now. In time, if they remain as professional members, they could become active proponents and customers of ASME products and services. The “students” conversation also includes the participation of Chinese students in ASME and Society activities while they attend universities in the United States. ASME has an opportunity and may have a role in helping these students maintain their relationships with friends and colleagues once they graduate from U.S. institutions. These relationships go beyond U.S.-Chinese relationships, given the large number of students from all over the world that attend U.S. universities. Overall Strategy for China China has shown, as did India and Peru, that ASME must consider an overall strategic philosophy of “Think global, act local.” But unlike Peru/Latin America and India, China offers a very different opportunity compared to other parts of the world. Potentially, China represents ASME’s largest international market, so it requires a carefully crafted strategy on how to best deploy products and services into this market.

This report is intended to inform the discussions of the full ASME Board of Governors at its upcoming meeting, January 20th and January 21st, 2016. Any and all follow up work based on

the findings in this report, including further analysis of these and other international markets, will be discussed at the Board meeting. Outcomes stemming from this report, and the work of each

delegation, will be a function of Board discussions.

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VI. Governors Summary Report • In 2015, the ASME Board of Governors acknowledged the importance of previous Board

initiatives to establish ASME as a global enterprise, and to support the ongoing efforts by staff to achieve this goal. Eager to support these efforts, the Board determined to embark on a, first-of-its-kind, series of international visits to three countries situated on the Pacific Rim: China, India, and Peru. The goal was to bring back firsthand knowledge in order to better inform the full Board during its deliberations and directives going forward, especially as they pertain to ASME’s strategy.

• The fact-finding mission, led by ASME President Julio C. Guerrero in late 2015, gave Board members direct exposure to the challenges ASME faces in expanding further into international markets and improving its global impact. ASME currently does business in more than 150 countries. Using gross domestic product (GDP) as a metric, ASME is represented in 2/3 of the world’s economy. Given this expansive footprint, it was necessary to target only a select number of countries. In the end, three countries were chosen. Three separate delegations of members of the Board of Governors visited each country in the following order: Peru, India, and China.

• With the insights acquired through this firsthand experience, Board Members are in a position to better provide important strategic guidance to ASME volunteers and staff in advancing Society aspirations, as embodied by the Board of Governors’ approved enterprise strategy. The trips also help inform the work being done to advance the organization’s mission to be the global leader in technology development and improving the quality of life for all humankind.

Key Findings • Upon return of the international trips, a report on findings was drafted and reviewed at a

special session of the Board’s January 21, 2016, meeting. During Board deliberations, members of the Board’s delegations and other Board members identified several strategic points deemed as important takeaways for the Board and staff, as the enterprise develops and implements the international component of the organization’s enterprise strategy. These points are outlined in this document.

• Strategic observations and conclusions: • International expansion is vital for ASME in order to achieve strategic and associated

financial goals and objectives. • ASME must “Think Global and Act Local.”

o Success demands that the right products, processes and people be in place. o Relationships are essential to success.

• Broader, more thorough market analysis is needed to support global input to the strategic technology choices.

o Since the BOG did not travel to other parts of the world, such as Japan, Korea, Europe, Middle East, Africa, Australia, etc., many opportunities also exist in those areas and warrant consideration.

• Common strategic threads were evident in different countries and regions.

o Conferences, for example, represent an important brand builder and potential membership generator.

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o Conferences at all levels— local, regional and global—are sought in all regions to raise their technology level and grow membership.

• International corporate collaborators are important. • Workforce development of professionals and students is needed.

o Stakeholders from every region visited indicated that the key to regional economic development is related to professional development of students, young engineers, and mid-career professionals.

o Stakeholders view ASME as the best way to develop their careers and networks, since ASME can connect them with experts worldwide, and by enabling access to content.

• ASME’s Standards and Certification program is, generally, a key ASME entry-point around the globe.

o The Standards and Certification program gives ASME the opportunity to expand codes and standards work around the world and also to branch out the marketing and sales of other ASME products and services.

o The Society has a strategic opportunity to determine ways to improve awareness of ASME codes and standards among students to help build the future use of ASME codes and standards products.

• Engagement with ASME, by stakeholders around the world, must be made easier. o As ASME enters or expands in a country/region, the organization must examine

the need for more flexibility in the way ASME interacts in each region to reflect and respect regional cultures.

o Regional support: If ASME decides to enter or expand its presence in a region, it should establish a local presence.

• Consider regional technology needs. o Technology interests vary by country and by region, but there are many common

interests. Thus, the technology needs in each region identified in the report should be considered in the process of selecting key technologies as part of the enterprise strategy.

• ASME’s competitiveness o The fundamental question is: How does ASME maintain relevance and grow its

international footprint? This includes everything from growing membership to a more engaged presence in the regions.

o The Board must be willing to invest in staying competitive, vis-à-vis other not-for-profits (ASCE, IEEE, etc.) as well as with vertical commercial entities.

• Beyond the strategic inputs above, there are many other common threads and/or insights from a tactical level that are important for ASME to consider.

• These common threads and insights fall into two groups:

• Some limited actions that support current activities, that do not pre-empt strategy, that are at no cost, and that regional managers and volunteers can try to implement, and

• Other insights that should be evaluated as the enterprise strategy develops further and is implemented.

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• Staff and SMC leadership need to work out the best way to deal with these within budget constraints, our ongoing activities, and in the context of the enterprise strategy.

• There are insights that were gained during the three international trips that should be included in the deliberations on strategy development and implementation.

• These are categorized below as areas of: common threads; further consideration; and near-term opportunities.

Common Threads Across the Regions • Workforce Development at the professional level, and the student level. • Membership growth. • Decrease or elimination of obstacles to engaging (doing business) with ASME. • Increase local engagement through, for example, regular (annual) regional

conferences. • Facilitate relationship with ASME Headquarters by, for example, establishing a regional

leadership structure. • Facilitate local initiatives by, for example, delegating authority to local level. • Facilitate upward mobility by, for example, clearly mapping opportunities for leadership

progression within the Society. • Expand engagement with corporate leaders. • Promote adoption of ASME Standards and Certification.

o Some ideas: o Optimize entry point for codes and standards programs. o Expand the opportunities for the use and adoption of codes and standards. o Educate decision makers about adoption of codes and standards. o Nurture relationships with those already indicating a preference to use ASME

codes and standards by continuing efforts to inform about ASME’s codes and standards programs.

• Improve ASME’s organizational competitiveness. o Some ideas: o Increase the number of ASME members in each region. o Provide ASME regional leaders. o Provide more decentralized authority at the local level.

• Foundation/sponsoring companies to help fund scholarships and endowments. • Address diversity directly. • (See Appendix A for expanded discussion.)

Further Ideas for Consideration • The following items are offered as areas that—after development by volunteer and staff

leaders—could facilitate discussions at future BOG meetings. Volunteer and staff leadership is encouraged to present to the Board ideas and options for achieving these:

• Increase regional offerings on training and development. • Facilitate business outside the U.S.:

o Review models of other organizations, such as IEEE, leading to the development of “best practices,” and

o Engage legal experts in the U.S., or from the regions, to review the limits of how ASME can do more business globally.

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• Increase membership (reference “Near-Term Opportunities” in next section). • Generate technical conference topics driven by the members and the technical

communities in each region; then organize such conferences. • Provide to the regions the tools that existed for districts and district leaders in the prior

ASME sections model. • Provide decentralized authority, as appropriate, at the local level. Also report on the best

practices of other Societies in this area. • Develop leadership positions within ASME in the regions.

Near-Term Opportunities

• Some potential actions appear as “low-hanging fruit” that don’t pre-empt strategy decisions, and that have essentially zero-cost to implement. Once confirmation of the assessment is made, these should be reviewed by the SMC and staff leaderships for appropriate action.

• Several specific near-term opportunities were identified during the international visits and in subsequent discussions. These are listed below. Staff and volunteer leadership is encouraged to identify a timeline for implementation of each.

• Collaborating with the “Colegio de Ingenieros” in Perú and Colombia to promote ASME membership, as well as with the Institution of Engineers in India (IEI).

• Provide codes and standards introductory courses in South America, North America, and in India.

• Open a student section at Beijing University of Technology • Rationale: The rationale for these recommendations is that these activities appear to

have the highest probability for success, especially given the enthusiasm expressed by local stakeholders. The country hosts in each of the visits expressed a desire to collaborate with ASME to implement these with minimum effort on the part of ASME. One activity increases the number of ASME members in a significant way in several countries; another introduces ASME codes and standards to engineering students. The common thread between these two is that ASME needs to generate greater demand for its products and services. During most of the international visits, delegates were told that students do not know much about ASME codes and standards, and introducing and disseminating this information will help them and ASME. Further, local stakeholders emphasized the need to increase the number of ASME members in their respective countries, in part so that local companies and professional organizations can engage more with ASME.

• Collaborating with the “Colegio de Ingenieros” in Perú and Colombia to promote ASME membership, as well as with the Institution of Engineers in India.

o The presidents of the Colegio de Ingenieros of Perú and Colegio de Ingenieros de Colombia want to facilitate a process by which the current and new members of their organizations can become members of ASME. Each of these two organizations has almost 130,000 members. In South America, the Colegio de Ingenieros is the national organization that groups all the engineers from all disciplines. It is also responsible for granting and administering the Engineer Registration in each country, which is analogous to the USA Professional Engineer (PE). They want to be proactive on this because they see value for their members

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and for ASME. Access to one of the most recognized worldwide technical networks and content is one of the reasons they want to move forward and implement this as soon as possible.

o The Institution of Engineers, India, (IEI), is the national organization of engineers in India. It has more than 800,000 members in 15 engineering disciplines in 114 centers or chapters, of which five are overseas (Gulf, Malaysia, Mauritius, Singapore, and Australia). It is the world's largest multi-disciplinary engineering professional society in the engineering and technology world. Nearly 200,000 of its members are mechanical engineers. The IEI conducts an examination to obtain Associate Membership—this examination is considered to be on par with B.E./B.Tech. The IEI leadership is eager to consider a plan in workforce development and certification, and wants to work together with ASME to organize regional conferences on advanced technical topics.

• Provide codes and standards introductory courses in South America, North America, and India.

• In almost all of the delegations’ meetings in South America and in India, local stakeholders asked for courses, books, or other introductory material to ASME codes and standards. This can be achieved through design courses or through introductory seminars. Through related conversations with professors from top U.S. universities, members of the delegation have also received a lot of interest and support to implement similar courses in U.S. engineering design courses or capstone courses.

Pursue in South America and India: • Local stakeholders were aware of a small ASME book that introduces ASME’s Standards

and Certification programs. They would like to have: 1) A video disseminated among their faculty to introduce the content of the book or similar material; 2) A seminar delivered by video conference for their faculty to learn more about ASME codes and standards; 3) Some documentation of recognition from ASME as evidence that they have taken the course. The third of these is not a prerequisite or condition for the first two. ASME has strong connections with the top two or three engineering universities in each of these countries. The leading faculty members of these universities want to facilitate this process as soon as possible.

Pursue in the USA: • In the U.S., ASME has a Mechanical Engineering Department Heads (MEDH) committee.

This educational program could be introduced by the MEDH committee to most universities in the U.S. To begin the process, ASME may approach professors who teach mechanical design at some of the top mechanical engineering programs in U.S. universities, such as MIT, GT, UT Austin. Several members of the ASME BOG have strong contacts at these universities, and would be able to facilitate a pilot program.

o It would be ideal to have a set of options available to the BOG as soon as possible, this way, a first program can be started in the fall semester in the Northern Hemisphere, and in the spring semester in the Southern Hemisphere.

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• ASME has an opportunity to develop a student section at Beijing University of

Technology. If developed successfully, it could become a model and a springboard for other student sections in Beijing and around China.

Expansion of “Threads” Section Workforce: Development of professionals and students

• Expand offerings • Some regions want training in own language • Regions want local providers • Local providers do not necessarily want to be involved in delivering other services • Regional sponsors are open to pay for travel expenses of the instructors, but not

honorariums • Promote the ASME Distinguished Speakers Program, as these speakers can be very

effective for this common thread

Stakeholders from the regions visited said they want ASME to facilitate training, networking, and access to content. They also indicated that the key to their region’s economic development depends on the development of their students, young engineers, and professionals. Therefore, they see ASME as the best means to help develop their workforce. ASME is looked at to facilitate networking with experts worldwide, and to facilitate access to content.

Increase the number of ASME members in each region • When students graduate, they need to become members of a local professional

engineering society. In Colombia, Chile, and Peru*, there was a readiness to add ASME as one of the professional engineering societies (as mentioned by the president of the Colegio of Ingenieros).

• Regions need the tools and communication mechanisms available when districts model existed in ASME.

• Regions need a clear map of leadership progression in ASME—right now it seems too flat (we have lost layers).

*Establish local staff presence where strategic.

Local stakeholders want ASME to increase the number of members in their regions. More members will allow more local activities to occur. Some regions, in fact, are losing members.

Make it easier to do business with ASME Local stakeholders in each region asked for more flexibility in the way ASME interacts in the regions. They told the delegations that ASME should be less USA-centric, and more locally focused. In almost all the meetings, stakeholders mentioned IEEE as an example of positive impact.

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Hold annual regional conferences locally In stakeholder meetings across all regions, participants expressed the urgent need to have at least one annual conference in each region. Benefits of having regionally located conferences include:

• Brand building; addressing local technology needs. • Local content—locally dedicated conference—customized (e.g., India had a gas

turbine conference, a derivative conference, modelled after IGTI). • Cost and time are barriers to sending people to conferences outside of the local

country. • Consider regional venues for the large ASME conferences, such as TurboExpo, AM3D,

PVP, ICONE, etc. Cancun (rather than Mexico City) was suggested as a possible venue

• Local conferences should focus on industry events—e.g., Rio Pipeline Conference, a geothermic conference in Colombia.

Consider a mining conference. A conference on aerospace applications can be another (Embraer)

• Consider multidisciplinary/multi-industry conferences • Local champions can help organize these regional conferences.

Enlist ASME regional leaders The regions want to have the tools that the districts and district leaders used to provide them under the previous ASME sections model. The two key reasons why students and professionals join ASME are to network and to access content. These benefits are disappearing because local stakeholders don’t have the tools the districts used to give them, and they do not have a visible leader in the region. Improve timeliness and cultural sensitivity of local decision making by providing more decentralized authority (more authority at the local level) In global activities, it is important to be timely and to properly reflect the cultural norms of the local region (“Act Local”). Both of these factors were identified by regional stakeholders as coming up short and in the process hindering program implementation and/or effectiveness. ASME needs to find ways to facilitate local decision making that is responsive in both timeliness and sensitivity to local culture and requirements, and yet conforms to the policy and financial requirements of ASME. Clear map of opportunities for leadership progression Local stakeholders told the delegations that when they join ASME they do not see a path to progress in leadership. For most of them, the current organization is a flat system, where one can spend 20 to 30 years in activities in groups that are not venues for them to develop leadership.

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VII. Report Appendices

Appendix A1 – Peru Delegation Book

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Appendix A2 – India Delegation Book

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Appendix A3 – China Delegation Book

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AppB-1a Peru Trip Notes – Keith Roe High Level Takeaways from BOG Peru Trip Perspective – Regional Economic Regrouping Peruvian and Latin American Economic and Business Environment (impressions – not scientific)

a. General sense was that there is a reasonable level of economic activity and that Peru and other Latin American (LA) countries are investing to expand their economies. But the same infrastructure constraints, technical workforce challenges, and the somewhat fragmented nature of the LA market add challenges to the future growth outlook. Furthermore, a significant shadow economy clouds the development process and the ability to compete on a global level.

b. Significant infrastructure programs are underway in Peru, and apparently in other LA countries. This infrastructure development represents a need for development support and technical work force training in areas where ASME could add value.

c. Different countries are different markets with unique characteristics and requirements, though also with some similarities. Markets need careful assessment to understand appropriate level of investment in each and in the region.

d. Peru and apparently other LA countries have a shadow or informal portion of the economy that is significant (30% in Peru) that does not follow the rules, including using appropriate C&S. This is a Gov’t issue and seems to create a challenge for economic growth in a global context. The shadow economy is mentioned further below.

Overall, ASME seems well known in Peru and Latin America, but is languishing. It seems to be in a mode of treading water and maintaining the status quo; lacking strong leadership and focus.

a. Codes and standards (C&S) seems to be an area where ASME has good connections to the region, but even there, challenges exist.

b. Heaviest impact of ASME in Peru/SA is in codes and standards arena. Industry representatives seemed to have the least awareness of ASME outside of C&S. Note C&S have challenges re Gov’t support in the region, as noted below.

c. Academics seem pretty well aware of the training and development opportunities that ASME can offer and seem interested in finding a way to take better advantage of them.

d. Other areas add value but have very uneven levels of awareness and participation amongst the groups we met with.

Strong ties seems to exist between the various countries who consider themselves part of the Latin American group of nations. Would include Peru, Columbia, Chile, Ecuador, Panama, and more.

a. Seem to nurture relationships among these countries and share experiences and opportunities. Travel and communications between them are easily facilitated.

b. This is a potential beneficial factor in planning any activities to expand ASME presence in South America/Latin America.

On the other hand, the regional nature of the LA market requires a multi-pronged effort to more effectively penetrate. Strong inter-country linkages facilitate this, but different laws, in-country organizations, add to the complications of the effort.

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With the Gov’t investment programs getting underway, there is a real concern whether there will be sufficient engineers and professors to teach them that have the appropriate skills in the latest technologies. Question raised as to how ASME could help address the latter issue. The need here is for training and then professional interaction on the subject matter by the professors.

Overall, LA represents a mix of challenges and opportunities for ASME that reflect the economic regrouping that is underway. To effectively pursue these opportunities, a careful analysis is needed of the challenges, their potential value and their timing to understand the return on the investment and payoff to ASME.

High Level Observations and/or Strategies • Within the economic context, the potential exists for expansion of ASME activities across a

broad range of products and services. • Many people we met believe that broad based activity coordination at multiple

levels would be very valuable and help grow ASME. Should coordinate with the three legs of the stool: with Department Heads, with Student Sections, with Professional/ECE Sections.

i. Currently, both student and professional sections have a sense of remoteness and disconnect from ASME as a whole.

• Belief that other US professional societies like IEEE can work together on joint initiatives for mutual benefit.

• Range of interests in LA covers the ASME spectrum pretty much, including training, conferences, S&C, academic exchanges, student sections and competitions, professional sections, publications, etc.

• The ongoing Gov’t investment in infrastructure could be a catalyst for some expansion of ASME activities.

Strong historical Latin American ties and connections between countries can be more fully developed to advance ASME goals and mission. The groups from different countries are comfortable working together and cross sharing ideas, training, conferences etc.

• Belief is that ASME can facilitate this cross sharing at industry, academic, professional and government levels.

• Also strong interest by many of the academics and the more committed members of ASME to help support the growth and coordination of these activities if support provided from ASME HQ.

• Question could be raised as to why that has not already happened, why they have not lead the effort already? Good question. Answer is not clear, but support withdrawal probably is an important component.

There is no vehicle for coordination such as an ASME office and employee amongst the LA countries to facilitate and coordinate growth, development and support of ASME activities in the region, something that apparently existed in the past.

• That apparently facilitated much better interaction and sharing between universities, sections, countries and ASME as a whole.

• There were a few people in the meetings that we met that would be enthusiastic and energetic supporters of such an initiative, such as a couple in Peru and Hector Gomez from Colombia. Such people should be identified and recruited if a strategic decision is made to more aggressively pursue ASME development in the LA countries.

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Codes and Standards • Codes and Standards are well respected, but have challenges

i. Use of C&S is narrow, focused on the area they use, with little apparent awareness of the broader range of C&S ASME has available.

ii. Seem anxious to have greater visibility and awareness of C&S content without having to purchase them initially – like window shopping. Believe this will help expand use.

iii. ASME Section leadership think the C&S can be more widely used in other industries in Peru like mining, transportation, power, other.

• C&S perceived as a cost adder to the product and thus a competitiveness issue. i. Many Latin countries appear to have 2 economies: formal (which use and

abide by codes, employment law, etc. = about 70%) and an informal or shadow economy (about 30%), which does not follow regulations in general.

ii. Multinationals and others in formal economy doing large projects or apparently for items for export use ASME or others C&S. But smaller manufacturers and items for local use employ a lower grade of standards. Many rely on the fact that it often is the same materials, or same welders, etc. doing the work so the quality should be good.

iii. This dual economy issue is typical of Latin American countries per our discussions. Creates a big safety issue.

• Seems also there are problems with certifications by third parties. Implications were that they were not rigorous, or worse. This lessens need for strong standards and certification for ASME type standards.

• Lack of consistent use and enforcement of use of high level standards like ASME is a major issue to industry, and they are anxious for ASME to assist in supporting the needed changes in policy, though in fact ASME has little true potential to influence this.

• While ASME can help in this, the crux of this issue is a Gov’t issue and they need to take it on.

Academia • Significant training opportunities for engineers seen by both industry and academics

i. In the areas where megaprojects are developing such as mining, transportation, oil and gas, more training is needed.

ii. In upgrading skills and learning new technology developments. iii. In better understanding of C&S. iv. See opportunity manufacturing technologies v. See opportunity for long term Masters like courses and short duration courses.

• They are looking for creative teaching tools and techniques/opportunities i. Need better programs to educate in select areas, e.g. a full year course at

the undergrad level in areas like transportation, renewables, advanced manufacturing.

ii. Could also use 1 week intensive courses on similar subjects iii. Need education programs in soft skills like leadership, working in teams, etc.

• Desire for ASME to coordination of ME Department Chairs across LA. i. This could also facilitate the coordination of Student Sections in each country

and between countries.

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ii. Should also find a way to coordinate local sections in each country. Student Sections

• Student sections were very enthusiastic and anxious to get more involved to help themselves and to help ASME.

i. Met some impressive young engineering students. • See ASME as an avenue to gain access to technology and network with SME’s. • See Student Sections as a important way to network with other students, share

experiences. • There is good awareness by academics about some of the competitions such as

HPVC and they have programs like this. Already doing some, but anxious to do more.

Professional Sections, Membership, Networking and Professional Development • Increase ASME support by increasing ASME membership in the region. Could make

link so admittance to the Colegio, should become an ASME member. i. Could have an MOU between Colegio and ASME for this. ii. Participants believed this could work in Peru, Columbia and other LA

countries. • Professional Sections exist, but strength varies and they need more support to be

more successful. i. Peru section was up to nearly 1000, but now down to about 500. ii. Part of the issue is lack of local support and linkage to the larger ASME

organization. (Prior District structure was mentioned as very helpful; things have fallen off since then.)

• This includes more conferences for training purposes with participants, but also to build ASME brand recognition.

• IEEE in particular, but others also, are stronger than ASME in the region (according to participants) due to more heavy commitment to the region. May be a model to follow.

Conferences • Anxious to expand national and regional conferences in the region. If configured

properly, see them as an important vehicle for expanding participation at the student, professional, academic and industry level.

• Would like consideration to be given to rotating larger ASME conferences to the region.

• Strong LA ties leads to belief and relatively modest cost (vs overseas) would allow strong participation from LA countries.

Government and Professional Organizations • Are aware of ASME, but are not as connected as they are with others like IEEE. • National Institute of Quality and others trying to raise level of quality standards used,

but there is political opposition due to added costs. Technology Development Support: the following technologies were raised during multi-day

discussions: • Infrastructure, particularly transportation • Oil and Gas • Mining (already a significant industry), but is slowing down • Food processing

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• Renewable energy (generally and for remote locations) • Water supply management • Mechatronic systems • Computer simulation • New materials to reduce environmental impact • Automation • Big data analytics • Fitness for service • Advanced manufacturing • Others mentioned in passing: IT applied to education, Nano-materials, biomechanics

More Detailed Notes or Possible Actions 1. Codes and Standards

a. Participation and linkage to C&S i. For Colegio de Ingenieros in both Peru and Colombia, they would like to

participate in C&S activities ii. Believe bringing in technical support on C&S to organizations like Osinergum

(sp?) would help them more effectively interpret the standards. Would like a forum for training.

iii. Osinergum would like a direct channel for technical support and education. iv. Would like to have an MOU on accreditation of testing procedures and

interpretation of C&S. b. Access and Training on C&S is an Issue

i. Would like a text book on C&S so that it can be taught in schools ii. Also support to train the trainers at the professor level iii. Would like to see the most used Standards translated into Spanish to facilitate

their use. iv. Would like better access to help support better C&S understanding.

1. Consider bringing a local champion to the US and give an intense program for a month

2. Alternatively, could bring some C&S experts to region and do a concentrated program for multiple participants.

v. Relationship between ministry, industry and professional societies: 1. Ministry (e.g. Energy or Mines) selects the standards 2. Professional societies don’t write standards 3. If industry needs something, they ask the Gov’t for it and Gov’t

decides. In ME, Gov’t will typically start with existing standards, typically US.

4. But some Gov’t body – Osinergum (sp?) – wants to adopt international standards and ASME is not considered international since not recognized by WTO and not voted on by other countries.

c. In Columbia, if had someone on the committee, then could probably adopt the standard in Columbia.

2. Academia a. A divide exists between academia and industry that academia believes ASME could

help bridge. This is in the face of increasing R&D investment by the Gov’t. (Peru) b. New law in Peru that all professors must have PhD. Can ASME help in this???

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c. Having an ASME website in Spanish and being able to communicate in Spanish was thought to be very helpful.

d. Generally, a strong interest amongst students and a faculty for access to SME’s and broader technical content that is available in ASME.

e. According to World Economic Forum report “training in Peru is alarming”; is going in the wrong direction. Some previous help from Germany re courses, but suspended. Can ASME help run a program to address needs?

f. Believe industry is able and willing to provide capstone projects for university programs.

3. Student Sections a. Strong interest evidenced by those we met re growing student sections and

activities. b. Feel student knowledge and understanding of C&S should be expanded to facilitate

their use more broadly. 4. Conferences

a. Broad interest in broadening ASME conference presence in South America. b. Consider locating existing conferences in LA. c. Link short term educational programs to conference that come to the region. d. Would like the conferences to include student competitions. e. “Dream” is to have a significant ASME conference in SA with a local focus for

engineers, professors, students and industry. 5. Journals, Publications and Publishing

a. Desire amongst professors in regions for ability to publish more in the Journals of ASME, amongst others.

b. Similarly, presentation of technical papers is important in the US or elsewhere and there is interest in having greater opportunities to do so.

c. Also mention was made of publishing ASME text books, namely “updating old tomes”.

6. Industry a. As industry moves into new areas supported by the Gov’t, the leadership of industry

also needs training in these areas, not just the working level engineers. b. Industry seems to have limited knowledge of what ASME can offer beyond C&S, at

least as represented by those present. Their emphasis was C&S, and even then it was limited to the C&S that they specifically used. Not aware of the breadth of AMSE C&S>

7. Government and Professional Organizations a. Ministry of Energy and Mines could benefit from a communications bridge between

the Ministry’s technical teams and ASME code Committees. A good understanding could lead to quicker adoption of the standards.

b. Might work in other countries such as Colombia. c. National Institute of Quality established about 1 year ago. Trying to address quality

issues in steel mills. Have established about 30 committees to develop C&S. i. May be opportunity for ASME

d. Question raised: Could ASME partner with industry and address the quality issue and go to the Gov’t to highlight the formal and informal markets?

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e. Some feeling that ASME needs to take stronger role in the quality issue resolution. Example is that with concrete and structures, the mostly civil engineers apparently in Gov’t recognize the issue so there are strong standards there. No so in ME. Can ASME work with industry and help?

8. Technology Development Support a. Suggestion of sharing an ASME list of technologies available with the Colegio. From

this they could input where ASME could be of most help to focus efforts. b. Colombia did this with another organization and result was a joint conference on

engineering challenges.

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AppB-1b_Peru Trip Notes Cross Referenced – Julio Guerrero & Bill Worek Technology Focus

Industry Focus Geography Focus

Portfolio Strategy Option

Constituent Needs Focus

Session 1A – ASME Professional Members

Q 1.1 ASME’s international reach is extensive. We want to enhance these efforts. What three things do you think ASME can do to improve its support and engagement of local professional members and those in Latin America overall.

Q 1.2 What are some of the most effective ways in which professional engineers in Latin America keep up with technology advances and continuing education?

Q 1.3 This is a two-part question: First, can you tell us, generally speaking, how Latin American countries maintain safety and high-quality engineering practices? The second part of the question is, what do you think the role of international standards is in Latin America?

ASME is very well known for C&S especially regarding the pressure vessel code. Even though that is important because we are in a large gas development area, I think ASME should be open to providing other services and requirements for other mechanical engineers in the region who are not involved in C&S work.

Mining is very important to us. The areas where there is a mining need are important. We would be able to better engage with ASME if we knew of the products and services that are available through ASME. Mining requires conveyors, and bulk handling issues are related to mining. What are the standards and courses that we can provide to these people?

Our engineers are not updated with the latest understanding of standards. We need training on the latest advances. Practical training and C&S

We have good engineering schools. But our universities are not well connected with industry. They are more theoretical and less practical. We need practical training. There are opportunities for ASME in this area.

There is a high cost to training. Sometimes we don’t feel it’s worth the expense. We are very stingy. There are limited budgets. In order to approve training sessions, potential attendees need to get approval from their bosses to be able to spend. There may be broader teaching opportunities to fill the needs in this country and the region. (Webminars and bring Experts)

Oil and gas represent excellent opportunities in this area. The players in this area are not not required to get the stamp. Companies like Repsol are pushing hard not to have the stamp required.

Transportation is another tremendous need we have locally and in other countries of the region. We need to find better ways of transportation. In Peru, we are doing an underground line. This is another area that ASME can potentially enter.

The need is both for the transportation of materials and transportation of people.

One of the things we need is to be better integrated. We need to be connected and this may be an opportunity for ASME. The sections need to be connected. If we want ASME to grow, we

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need to be integrated. We need someone who is the point person—not only for C&S but someone who understands our needs and also someone who knows how ASME may be able to help meet those needs. Someone who has the leverage to help us and help ASME grow.

We need someone who is always integrating and articulating to us and to ASME headquarters. We need to reactive leadership in Latin America. The concept of One ASME disappeared.

Motivation for membership growth is motivated on what ASME can provide for us. Mechanical Engineering is one good example, we need technical reviews, we like information, we would like speakers from ASME who will share information, best practices and technology innovation with us.

We are in a phase of big development in Peru. There are a lot of opportunities. Our engineering challenges are bigger than they were 20 years ago. Some of these projects included development of power plants, metros, and railways to connect Brazil with Peru. But who is going to develop the designs? We don’t have the universities teaching those course. We need to motivate the universities. Maybe provide the universities access to one or two experts on these topics. Perhaps ASME can help us with this.

Education is a most important challenge in the region. Maybe there’s a possibility for a special technical program offered by ASME through a visiting professor that would enable industry to send employees to the college—this would be a win-win. Some of the areas we need are crane management, areas of rail conveyors, oil and gas, oil refineries, rail. We often have to hire engineers from Spain and other European countries because we don’t have the specialties here. Building specific industrial competence locally is paramount.

In terms of C&S, for us, it has always been safety first, then quality. Some companies want to replace the stamp with a letter that says ‘our reputation is enough.’ They don’t even have the latest version of the code. Teach C&S in the context of benefits from Safety and Quality, we can’t sell what they do not perceive as valuable

In terms of education, many things may be possible. One may be a sequence of courses providing a professional master’s program. There may be opportunities for ASME to train in specific areas, such as transportation, bulk material, conveyors, and cranes. To summarize, there is a need to do a better job of integrating ASME Latin American sections; to help in education; and to education governments that the ASME standards and codes are critical in terms of our economy and safety, which is most important.

There may an opportunity for ASME to be able to identify qualified instructors. Maybe ASME can broker relationships between universities and visiting professors where there is revenue sharing.

In education, we need a better integrated situation where we can share best practices among individuals. There is strength in networking.

We need access to information. We also need training. Because there is not sufficient training, there are divergent safety practices. A lot of consulting agencies lack the knowledge of ASME C&S. There has to be an opportunity for ASME to play a role of integrator: university teaching with industry training—especially in area such as mechanical systems.

There is no strong voice in Peru to use ASME codes. We need help in championing safety and quality. There is no “gringo” here. The value proposition for Latin American is in knowledge, and

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networking within Latin American and globally. We need and want to feel part of the same ‘club’. We need better access to technology transfer.

Session 1A – ASME Student Members

Q. 2.1 Student members around the world tell us that one of ASME’s value proposition is networking, both peer-to-peer and from mentors at conferences and local meetings. What do you think are three things ASME can do better to help local and regional student-members network.

Q. 2.2 How do you rely on professional engineering societies such as ASME to expand your knowledge of technology and engineering?

Q. 2.3 Two part question: Please share with us three ways in which you think ASME can help you embark on your engineering career? Related, what are other organizations providing that you wish ASME would offer?

Q 2.1

We’d like to make four points:

1. ASME can help get sponsors and speakers for events that we hold 2. ASME can develop a smart phone app for connectivity 3. ASME can further develop its webinars program. We like the sponsored webinars but

they can hold other ASME webinars. Also develop Spanish-language programs. 4. ASME can develop tutorials on how to navigate asme.org (also in Spanish). Or ASME can

produce a YouTube video on how to navigate the site. ASME.org is too complex and needs better tools on how to find content.

We need easier access to other student members in the region. Maybe ASME can include section members on asme.org. We need to be able to easier identify the key stakeholders in each of the ASME Sections.

Q 2.2

One strong way to keep connected is through membership in ASME. As members we can access asme.org. Being a member is important for us to network.

How do we gain trust between students and ASME? We receive a lot benefits from ASME and many members take advantage of them. One example is the magazine. We would like to improve the communication and interaction between the students and the organization. We would appreciate a regional point of contact for holistic support (membership, publications, speakers, etc.). This contact would not only be between the organization and the student members, but also with professional members. This creates a greater opportunity for ASME members to interact.

ASME also serves as a way to grow professionally. We would like to build better interaction between the student and professional members for mentorship and inspiration. It would also reinforce the networking between students and professionals.

We would like ASME to develop a robust mentoring program (for engineering centric work and also for personal development—leadership, soft skills, etc.). We need to access to mentors.

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Q 2.3

Please reactivate early-career development programs in the region. There is a need to bridge the gap between student involvement and professional engineer development. This would help in membership growth.

We need technical support and training for specific industry segments for students. IEEE has a local office that provides this support to IEEE student members. The infrastructure that other organizations have enables provides support for individual technical needs. Students are referred to IEEE subject matter experts, this enables the organization’s growth in the global community and the organizational cachet.

Maybe ASME can hold an awards program supporting the work of student in different student sections. SPE, for example, offers student sections networking opportunities with companies. SPE organizes competitions in which industry partners with students in joint competitions (i.e. FIRST competition?)

What can students offer ASME?

We can spread the word about ASME’s regional activities. Students can be the champions of ASME. ASME brings an important culture to student members. ASME provides depth in the area of science and technology. ASME provides a broader perspective on the profession and on the possibilities in science and technology areas.

Opportunities/Requests:

IEEE offers a good model for ASME as it provides two large events that provide networking opportunities regionally. These are organized by IEEE headquarters. These provide an opportunity both for student, professionals and industry to experience broad opportunities in the profession as well as fill more personal needs (networking, training, etc.) (We should learn in more detail what IEEE is doing in LA)

The number of student sections is shrinking (from 7 to 5). It’s important to focus on the growth of student membership. The solution may be to develop a mentorship/tutor program. These student sections need to be well supported and continued support.

1. Better delivery of the benefits of the promise of membership 2. Provide student section leaders more support and training.

a. ASME merchandise as marketing during events 3. ASME South America full-time local representative who would be a strong advocate

for the needs of local members, students and professional members. 4. We need a student representative from South America to advocate for us. Someone

who is in communication with each country’s sections. We need a champion for Latin America.

5. ASME.org e-mail alias for students. (Communication) 6. Better ASME marketing, encouragement and promotion focusing on greater

participation in ASME events/contests (such as HPVC). 7. Provide greater understanding of ASME C&S to students (through an interactive

app?). This also serves to expand the ASME reach among students and others. 8. Enable a broader voice for Latin American students. Give students a voice in

determining section and regional direction and activities.

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9. Grow local sections. Not doing so is a wasted opportunity because there are a lot of interested students in ASME that would then become professional members.

10. We want leverage for the student sections. ASME can be more formal in its approach to developing local sections and celebrating their development.

11. Greater acknowledgement for the work of local student leaders. Session 2 – ASME Academia

Q 3.1 The publication of technical papers is a major benefit to academics around the world. Give us a perspective on what is also important to educators in Perú and other Latin American countries. What tools do you need in order to do your job better and to grow in your career? Related, what are three things we can collaborate on to support university engineering programs?

Q 3.2 Can you tell us how you include practical engineering applications in your curriculum? Related, do you teach application of engineering standards, such as ASME B&PV Code, in your courses?

Q3.3 How could a professional organization like ASME promote and cultivate interaction between student groups at all universities in Latin America?

There are times when we haven’t had sufficient feedback on requests for information. We would like to establish a better connection between our student leaders and ASME. We’ve had 137 new students in mechanical engineering this year at a new university that was established. We have ASME groups in all universities. ASME could help move the research in mechanical engineering. We need speakers from ASME for student conferences. Our curriculum is based project based. Publishing technical papers is at the top of the priority list (research). We do a lot of applied research to solve local problems. We need good, reliable sources of information. Computational mechanics and mechatronics are two areas of interest. We evaluate based on number of published papers and especially if they are from reliable publications. In some cases, professors work with industry, but not enough. UTech, for example, was built by the mining industry and is supported by the industry. The Universidad del Norte, in Colombia, was founded by local industry leaders. We publish in two types of journals: high impact factor journals, + relevant technical journals. What are your sources of information? In Colombia we have research groups where information is shared. We need case studies. Development of seminars and conferences through the local section is something important to us. Development of student competitions (national and international) – Student Design, HPVC, is also important. We would love for ASME to develop collateral on different ASME programs available. They want easy access to our content, our website does not facilitate it.

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In machine design classes students review ASME code changes. They ask why things change. The results are in papers that explain why. We need access to these papers. ASME C&S are compared with other standards. (The Cookbook approach does tell the reader how one got there…) Please provide more e-learning opportunities. In the last three years, the government is investing a lot of money in applied research. We don’t have enough professors to meet demands and a relationship with ASME would help. We need an organization like ASME to make the connections between professors in different countries in Latin America and with also industry. (This is a good opportunity for our current Department Heads group.) We need help in getting more professor obtain PhDs. Please work with IEEE so ASME and IEEE can learn from each other and potentially build joint programs or add value to existing IEEE conferences. ASME can be a connector among universities in order to help fill voids that exist (professors, learning tools, etc.) Our professors may not be prepared to teach the areas of industry needs. They need to be trained in these areas. Maybe ASME can help? We need the right tools and information. ASME can provide context for various industry segments. (Be a connector between industries. What is in ASME portfolio for industry segments) We need professional interaction. We have to find a way to connect. Universities have a requirement to have an industry advisory group. But this has not been entirely effective. What are the key technologies in this region?

• Materials • In Colombia: booming infrastructure (roads, bridges); also strong oil and gas, and mining;

renewable energy. There are major challenges for those who not connected to grid. New challenge is in manufacturing. Not sufficient knowledge. No systematic design methodology exists.

• Water supply management, mechanical behavior, seismic (natural disasters in general), computer simulation, water processing, new material development, biomechanics, Big Data Analytics, renewables, mechatronics, automation, IT applied to education effects of seismic on machine automation, nanomaterials, failure prediction and reliability.

WOULD LOVE THE DEVELOPMENT OF A MECHANICAL ENGINEERING DEPARTMENT HEADS MEETING IN SOUTH AMERICA. Opportunities/Needs/Requests

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1. Every country in South America should have a local section and chair (+ region) 2. International business networking for students and educators and industry—globally.

Inspire! ASME conferences in South America with a local technology focus for students, professional engineers, and industry (providing state of the industry context in the continent—include competitions with Latin America flavor to inspire students)

3. Help strengthen dialogue among academic institutions throughout South America 4. Help integrate the efforts of ASME student sections in South America 5. ASME facilitates the networking of universities and industry (ASME has access to both).

Facilitate: Industry mentors for universities and students; capstone projects 6. South America is seeking learning opportunity: renewables, transportation, water, seismic,

solar cell, IoT, Big Data analytics, advanced manufacturing, biomedical engineering, engineering materials, food engineering.

7. Need a bridge between academia and industry: Strengthen communication/link between universities and industry.

8. Broaden the exposure of Standards & Certification in South America. 9. Creative teaching tools and techniques (e-learning w/Masters classes?) 10. Soft skills training 11. Rotate industry conference in South America (such as PVP) involving local participation

and organization 12. Publish text books (update old engineering tomes) 13. Better market ASME’s efforts in South America to the local stakeholders in the local

language (EngineeringForChange.org can serve a significant conduit in engaging universities and local communities.)

Session 3 – Industry

Q 4.1 ASME generates content and networking opportunities for industry. Can you tell us how local industries interact, and how professional engineers network in Perú and Latin America?

Q 4.2 ASME is engaged in workforce development. What are the biggest regional challenges associated with creating a workforce that is sufficiently skilled in the areas that industry needs.

Q 4.3 Our research shows that mining, oil and gas, power and transportation are important growth industries in Latin America. What role can you see for a professional organization such as ASME—an unbiased source of content and codes and standards—in the growth of the region’s industries and economies?

Competitors are non-formal and strong competitors. Competitors work with lower standard of quality. They say that they have the standard, but they really don’t have the standards. There have been cases when our competitors have had low welding and material standards. I’m not accusing anyone. Just demonstrating the landscape. These are standards for applications like LBG pressure vessel—small for domestic use and large industrial ones. Customers accept the lower products. Some laws state that they have to be ASME standards, but not certified by ASME inspectors. Government and insurance companies need to be involved in order to better regulate. Here, in some areas, the insurance companies requires the stamps, the government does not. We don’t have enough leverage in conformity and assessment. WE NEED TO INFLUENCE THE ENGINEERS TO WANT THE PRODUCT

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The mining sector demands qualified inspectors, accountants, etc. The customer was driving quality labor force, quality processes. We export a strong workforce to Chile, Argentina, Mexico, Saudi Arabia, etc. There are two different types of customers: international customers and the local customers (local investors). The local ones accept lower low-cost standards. These accept more risk. We need to show these clients that they need to increase their standards. There’s a great deal of informality in this country. Limited regulation. Therefore standards are not followed by many companies. It starts with customs related issues—materials and other products that come in are poor. What has become normal is a system that accepts the standards that the customer sets, instead of the government setting the standards. There are different levels of “informality.” Companies that follow the rules fall victim to rules that are not equitable. Supply and demand: if you build a strong workforce, you must have a market for them to work in. Session 4 – Government and Professional Societies

Q 5.1 Can you give us an understanding of how government entities, industry, and professional societies collaborate in Latin America?

Q 5.2 Can you give us your perspective on the types of engagement—with organizations such as ASME—that can benefit industry in your country and in Latin America?

In Colombia there is an association that governs all the engineering societies in the country. In Peru, a very similar infrastructure exists. Each country has a national engineering association, “Colegio de Ingenieros,” they want to facilitate the registration of their members in ASME, 170,000 in Peru, 130,000 in Colombia. ASME needs to facilitate monthly or bi-monthly to discuss common issues and accelerate the implementation of their offer, namely give their members the option to join ASME.

Peruvian department for Quality (INACAL) works closely with industry and thus with ASME standards. We are working with industry especially with standards re tanks. We are working in three areas: industry, government and academia. With this balance we set standards. We also do testing. We do certification. ASME needs to coordinate carefully and articulate the value with all the organizations involved in production and approval of C&S in each country/region.

Vice Minister of Mines: What is the role of the ministry of energy and mines? We promote investment and production and determine procedures to follow in approving projects. We don’t work with standards per se. The Ministry is the one with the final decision about what C&S have to be used. They are very open to work with us. If they decide to use our C&S, they country would use them. This is true for Peru and can be replicated for other country. Having a permanent presence/office in the country/region and a close and agile coordination with a representative with technical expertise from C&S (RTCS) can improve our insertion in the market by at least one order of magnitude in a year.

Case scenario:

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The ministry in Lima coordinates with our representative in Lima. At some point we need to have the representative with technical expertise from C&S meeting and coordinating directly/in person (RTCS) with the Ministry in Peru. That RTCS goes to Peru in a coordinated way with them and outlines the programs for training and educating the Ministry experts, outline the best C&S for them, and defines programs to develop more C&S tailored to the needs of the region. When we go there, we usually talk about 500 C&S, but they have expressed interest on having us focusing on 5 to 10 first.

Osinergmin oversees whether safety regulations are followed. For example, we work with hydrocarbons and whether they comply with standards. These include standards and codes specifically for pressure vessels. This organization is not authorized to “recommend” the use of ASME codes. The ministry of energy and mines is the group that establishes the standards.

How do industry, government and professional societies interact? Who defines which standard is used? INACAL produces the standard, the ministry of energy and mines says it has to be used and makes it mandatory, Osinergmin audits.

In Peru, the government “makes” the standards. Professionals or industry requests a standard. The government agrees, then the standard is created. The reference is an international standard. So Peru’s mechanical standards are based on ASME standards because they are world renowned and also industry standard. The most important collaboration is on how to interpret the standard and how it fits into the different countries and industries.

Sequence:

1. Professional societies highlight the needs for standards; and informs the community what is available (CIP – Carlos Herrera Descalzi)

2. The Ministry formally declares the needs for standards 3. INACAL is given the task of producing the standards. They produce new ones or

reference from existing international ones. They are very interested on learning about: a. Our C&S b. How to interpret them c. How to use them d. Our committees that create and update them e. Going into depth on 5 to 10 of our 500 first. They were very specific, and

consistent along the meeting about this f. How they can be active members of our C&S committees

4. The ministry approves the C&S that the country will use. They chose from the options that INACAL presents

a. The Ministry is the one with the final decision about what C&S have to be used. They are very open to work with us. If they decide to use our C&S, they country would use them. This is true for Peru and can be replicated for other country. Having a permanent presence/office in the country/region and a close and agile coordination with a representative with technical expertise from C&S (RTCS) can improve our insertion in the market by at least one order of magnitude in a year.

b. Our representatives in Peru and from USA can help INACAL to better understand ASME C&S perspective

5. Osernyming is responsible for enforcing the use of the C&S a. They want to be active members of our C&S committees

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In technical committees, we understand it’s a package of standards. The school of engineers participates greatly in technical standards committees. Those participating include members from industry, consumers, and technical groups.

We’ve been trying to arrange a codes committee with ASME to exchange ideas and information. It was for tanks but it was to exchange information. Our standards need to be national standards. We also adopt international standards. We don’t have a model by which we adopt international ASME standards. They base their national standards on ASME standards but they don’t use ASME standards. ISO is different. What is the criteria: WTO does not refer ASME as an international standard; the other reason is because others standards are ISO international standard (one country/one vote), ASME is a technical standard. THIS IS A TASK FOR C&S LEADERSHIP TO INVESTIGATE BECAUSE IT SEESM TO AFFECT OUR CHANCES IN THE INTERNATIONAL ARENA.

In Colombia the national institute of standards develops the standard. In Peru if we participate in Codes Standards committees then we may be able to influence the national standards. Osinergmin aggregates a combination of a number of standards.

How it works:

INACAL produces the standards using consumer, industry, and technical input INACAL standards are voluntary The ministry can make them mandatory The ministry can choose to use the international standards or ASME standards In technical sectors (like oil and gas), generally they are international standards. Osinergmin ensures the usage of the standard.

But it’s even more complicated. Certain areas have exceptions. INACAL approves the committee members. They have to be engineers from the Colegio de Ingenieros. Unless you have a PE you cannot participate in the committees. These are the committee members. If we want to increase the PPV codes in South America, we have to find a way to reduce the price. We need to study our pricing approach for the region. All of them referred to pricing. Maybe it is about how we package our products. Colombia’s relationship with AIChE and other societies was based on drawing up a wish list of potential areas of interest. One of the fruits was a joint conference on engineering challenges. Topics of interest in the region include local real-world problems. It may not be feasible to have a large regional conference. Some takeaways from meeting with Ambassador Nichols:

Some of the challenges and constraints to growth for Peru are:

• Governmental (bureaucratic) • Education • Corruption • Racial conflict and unrest

There has been a $16 billion investment from Brazil to Peru.

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Some of the largest copper mines in the world are in Peru.

Peruvians support extracting efforts, but there is significant opposition.

There is some improvement in math and science in Peruvian high schools, but a lot of work remains.

There is great centralization of the Peruvian population in the Lima area. 80% of costs are centralized. But Lima cannot be the only place where growth takes place. There needs to be growth of other cities as well.

There is a development project related to a metro system/subway. Expected to be completed in 2019—but doubtful.

There has been an El Nino effect in the weather that has impacted the economy.

Water is an issue for Lima and also for other areas.

There is a need for increasing training and capacity building. This is important and may be an opportunity for ASME.

There is great “informality” in business practices in Peru. Efforts to limit this informality are met with governmental stumbling blocks.

Peru is a unitary state (Most of the countries in Latin America too)—decisions are not made regionally but centrally. (Definition: a unitary state is governed as one single power in which the central government is ultimately supreme and any administrative divisions [subnational units] exercise only powers that their central government chooses to delegate.)

Globalization of American standards is a challenge. CHINA IS A HUGE INVESTOR IN PERU—second largest trading partner outside of the United States. This presents a challenge for the standards community because Chinese companies “may” transplant poor product development to the area.

There is a need in Peru for better trained scientists and engineers. This may be an opportunity for ASME.

In order to engage Peru, ASME may want to work with:

• The American Chamber of Commerce • Private Sector • Lima Chamber of Commerce • Universities • Peru wants to become a member of the Convention on the Organisation for Economic

Co-operation and Development. The challenge is to increase Peru’s Math and Science skills standards http://www.oecd.org/about/membersandpartners/list-oecd-member-countries.htm Peru’s education standards is one of the lowest in the world.

• COMEX Peru (Peru’s foreign commerce society) • The Public Affairs section of the Embassy. They have resources to support

cultural/technical/student exchanges. We should study US AID. We could use this to train the trainers that will train others in the region.

• SNI Sociedad Nacional de Industrias • 3M Research Center

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http://www.oecd.org/about/membersandpartners/list-oecd-member-countries.htm

http://www.oecd.org/about/membersandpartners/list-oecd-member-countries.htm

• Trans-Pacific Partnership Agreement TPI (43% of the WW Trading is taking place in the Pacific Rim)

Ricardo Pelaez (Senior. Commercial Officer):

The embassy funds science camps attendees to the U.S. We consider trade missions. We set up seminars. We could use this to train the trainers that will train others in the region. Many States have already sent leading trade missions to Peru. What kind of liaison does ASME has that can take advantage of this?

The embassy takes people from Peru to join trade shows in USA. Bringing people from Peru to the IPTI trade show in North America could be good use of this capability

The Peruvian government is pushing for public/private partnerships in Peru.

AppB-1c_Peru Trip Notes – John Falcioni Session 1A – ASME Professional Members Q 1.1 ASME’s international reach is extensive. We want to enhance these efforts. What three things do you think ASME can do to improve its support and engagement of local professional members and those in Latin America overall.

Q 1.2 What are some of the most effective ways in which professional engineers in Latin America keep up with technology advances and continuing education?

Q 1.3 This is a two-part question: First, can you tell us, generally speaking, how Latin American countries maintain safety and high-quality engineering practices? The second part of the question is, what do you think the role of international standards is in Latin America?

ASME is very well known for C&S especially regarding the pressure vessel code. Even though that is important because we are in a large gas development area, I think ASME should be open to providing other services and requirements for other mechanical engineers in the region who are not involved in C&S work. Mining is very important to us. The areas where there is a mining need are important. We would be able to better engage with ASME if we knew of the products and services that are available through ASME. Mining requires conveyors, and bulk handling issues are related to mining. What are the standards and courses that we can provide to these people? Our engineers are not updated with the latest understanding of standards. We need training on the latest advances. We have good engineering schools. But our universities are not well connected with industry. They are more theoretical and less practical. We need practical training. There are opportunities for ASME in this area. There is a high cost to training. Sometimes we don’t feel it’s worth the expense. We are very stingy. There are limited budgets. In order to approve training sessions, potential attendees need to get approval from their bosses to be able to spend. There may be broader teaching opportunities to fill the needs in this country and the region.

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Oil and gas represent excellent opportunities in this area. The players in this area are not not required to get the stamp. Companies like Repsol are pushing hard not to have the stamp required. Transportation is another tremendous need we have locally and in other countries of the region. We need to find better ways of transportation. In Peru, we are doing an underground line. This is another area that ASME can potentially enter. The need is both for the transportation of materials and transportation of people. One of the things we need is to be better integrated. We need to be connected and this may be an opportunity for ASME. The sections need to be connected. If we want ASME to grow, we need to be integrated. We need someone who is the point person—not only for C&S but someone who understands our needs and also someone who knows how ASME may be able to help meet those needs. Someone who has the leverage to help us and help ASME grow. We need someone who is always integrating and articulating to us and to ASME headquarters. We need to reactive leadership in Latin America. The concept of One ASME disappeared. Motivation for membership growth is motivated on what ASME can provide for us. Mechanical Engineering is one good example, we need technical reviews, we like information, we would like speakers from ASME who will share information, best practices and technology innovation with us. We are in a phase of big development in Peru. There are a lot of opportunities. Our engineering challenges are bigger than they were 20 years ago. Some of these projects included development of power plants, metros, and railways to connect Brazil with Peru. But who is going to develop the designs? We don’t have the universities teaching those course. We need to motivate the universities. Maybe provide the universities access to one or two experts on these topics. Perhaps ASME can help us with this. Education is a most important challenge in the region. Maybe there’s a possibility for a special technical program offered by ASME through a visiting professor that would enable industry to send employees to the college—this would be a win-win. Some of the areas we need are crane management, areas of rail conveyors, oil and gas, oil refineries, rail. We often have to hire engineers from Spain and other European countries because we don’t have the specialties here. Building specific industrial competence locally is paramount. In terms of C&S, for us, it has always been safety first, then quality. Some companies want to replace the stamp with a letter that says ‘our reputation is enough.’ They don’t even have the latest version of the code. In terms of education, many things may be possible. One may be a sequence of courses providing a professional master’s program. There may be opportunities for ASME to train in specific areas, such as transportation, bulk material, conveyors, and cranes. To summarize, there is a need to do a better job of integrating ASME Latin American sections; to help in education; and to education governments that the ASME standards and codes are critical in terms of our economy and safety, which is most important. There may an opportunity for ASME to be able to identify qualified instructors. Maybe ASME can broker relationships between universities and visiting professors where there is revenue sharing.

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In education, we need a better integrated situation where we can share best practices among individuals. There is strength in networking. We need access to information. We also need training. Because there is not sufficient training, there are divergent safety practices. A lot of consulting agencies lack the knowledge of ASME C&S. There has to be an opportunity for ASME to play a role of integrator: university teaching with industry training—especially in area such as mechanical systems. There is no strong voice in Peru to use ASME codes. We need help in championing safety and quality. There is no “gringo” here. The value proposition for Latin American is in knowledge, and networking within Latin American and globally. We need and want to feel part of the same ‘club’. We need better access to technology transfer. Session 1A – ASME Student Members Q. 2.1 Student members around the world tell us that one of ASME’s value proposition is networking, both peer-to-peer and from mentors at conferences and local meetings. What do you think are three things ASME can do better to help local and regional student-members network.

Q. 2.2 How do you rely on professional engineering societies such as ASME to expand your knowledge of technology and engineering?

Q. 2.3 Two part question: Please share with us three ways in which you think ASME can help you embark on your engineering career? Related, what are other organizations providing that you wish ASME would offer?

Q 2.1 We’d like to make four points:

• ASME can help get sponsors and speakers for events that we hold • ASME can develop a smart phone app for connectivity • ASME can further develop its webinars program. We like the sponsored webinars but

they can hold other ASME webinars. Also develop Spanish-language programs. • ASME can develop tutorials on how to navigate asme.org (also in Spanish). Or ASME can

produce a YouTube video on how to navigate the site. ASME.org is too complex and needs better tools on how to find content.

We need easier access to other student members in the region. Maybe ASME can include section members on asme.org. We need to be able to easier identify the key stakeholders in each of the ASME Sections. Q 2.2 One strong way to keep connected is through membership in ASME. As members we can access asme.org. Being a member is important for us to network. How do we gain trust between students and ASME? We receive a lot benefits from ASME and many members take advantage of them. One example is the magazine. We would like to improve the communication and interaction between the students and the organization. We would appreciate a regional point of contact for holistic support (membership, publications, speakers, etc.). This contact would not only be between the organization and the student

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members, but also with professional members. This creates a greater opportunity for ASME members to interact. ASME also serves as way grow professionally. We would like to build better interaction between the student and professional members for mentorship and inspiration. It would also reinforce the networking between students and professionals. We would like ASME to develop a robust mentoring program (for engineering centric work and also for personal development—leadership, soft skills, etc.). We need to access to mentors. Q 2.3 Please reactivate early-career development programs in the region. There is a need to bridge the gap between student involvement and professional engineer development. This would help in membership growth. We need technical support and training for specific industry segments for students. IEEE has a local office that provides this support to IEEE student members. The infrastructure that other organizations have enables provides support for individual technical needs. Students are referred to IEEE subject matter experts, this enables the organization’s growth in the global community and the organizational cachet. Maybe ASME can hold an awards program supporting the work of student in different student sections. SPE, for example, offers student sections networking opportunities with companies. SPE organizes competitions in which industry partners with students in joint competitions (i.e. FIRST competition?) What can students offer ASME? We can spread the word about ASME’s regional activities. Students can be the champions of ASME. ASME brings an important culture to student members. ASME provides depth in the area of science and technology. ASME provides a broader perspective on the profession and on the possibilities in science and technology areas. Opportunities/Requests: IEEE offers a good model for ASME as it provides two large events that provide networking opportunities regionally. These are organized by IEEE headquarters. These provide an opportunity both for student, professionals and industry to experience broad opportunities in the profession as well as fill more personal needs (networking, training, etc.). The number of student sections is shrinking (from 7 to 5). It’s important to focus on the growth of student membership. The solution may be to develop a mentorship/tutor program. These student sections need to be well supported and continued support.

• Better delivery of the benefits of the promise of membership • Provide student section leaders more support and training.

o ASME merchandise as marketing during events • ASME South America full-time local representative who would be a strong advocate for

the needs of local members, students and professional members. • We need a student representative from South America to advocate for us. Someone


• ASME.org e-mail alias for students.

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• Better ASME marketing, encouragement and promotion focusing on greater participation in ASME events/contests (such as HPVC).

• Provide greater understanding of ASME C&S to students (through an interactive app?). This also serves to expand the ASME reach among students and others.

• Enable a broader voice for Latin American students. Give students a voice in determining section and regional direction and activities.

• Grow local sections. Not doing so is a wasted opportunity because there are a lot of interested students in ASME that would then become professional members.

• We want leverage for the student sections. ASME can be more formal in its approach to developing local sections and celebrating their development.

• Greater acknowledgement for the work of local student leaders. Session 2 – ASME Academia Q 3.1 The publication of technical papers is a major benefit to academics around the world. Give us a perspective on what is also important to educators in Perú and other Latin American countries. What tools do you need in order to do your job better and to grow in your career? Related, what are three things we can collaborate on to support university engineering programs?

Q 3.2 Can you tell us how you include practical engineering applications in your curriculum? Related, do you teach application of engineering standards, such as ASME B&PV Code, in your courses?

Q3.3 How could a professional organization like ASME promote and cultivate interaction between student groups at all universities in Latin America?

There are times when we haven’t had sufficient feedback on requests for information. We would like to establish a better connection between our student leaders and ASME. We’ve had 137 new students in mechanical engineering this year at a new university that was established. We have ASME groups in all universities. ASME could help move the research in mechanical engineering. We need speakers from ASME for student conferences. Our curriculum is based project based. Publishing technical papers is at the top of the priority list (research). We do a lot of applied research to solve local problems. We need good, reliable sources of information. Computational mechanics and mechatronics are two areas of interest. We evaluate based on number of published papers and especially if they are from reliable publications. In some cases, professors work with industry, but not enough. UTech, for example, was built by the mining industry and is supported by the industry. The Universidad del Norte, in Colombia, was founded by local industry leaders. We publish in two types of journals: high impact factor journals, + relevant technical journals. What are your sources of information? In Colombia we have research groups where information is shared. We need case studies. Development of seminars and conferences through the local section is something important to us. Development of student competitions (national and international) – Student Design, HPVC, is also important. We would love for ASME to develop collateral on different ASME programs available.

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In machine design classes students review ASME code changes. They ask why things change. The results are in papers that explain why. We need access to these papers. ASME C&S are compared with other standards. Please provide more e-learning opportunities. In the last three years, the government is investing a lot of money in applied research. We don’t have enough professors to meet demands and a relationship with ASME would help. We need an organization like ASME to make the connections between professors in different countries in Latin America and with also industry. We need help in getting more professor obtain PhDs. Please work with IEEE so ASME and IEEE can learn from each other and potentially build joint programs or add value to existing IEEE conferences. ASME can be a connector among universities in order to help fill voids that exist (professors, learning tools, etc.) Our professors may not be prepared to teach the areas of industry needs. They need to be trained in these areas. Maybe ASME can help? We need the right tools and information. ASME can provide context for various industry segments. We need professional interaction. We have to find a way to connect. Universities have a requirement to have an industry advisory group. But this has not been entirely effective. What are the key technologies in this region?

• Materials • In Colombia: booming infrastructure (roads, bridges); also strong oil and gas, and mining;

renewable energy. There are major challenges for those who not connected to grid. New challenge is in manufacturing. Not sufficient knowledge. No systematic design methodology exists.

• Water supply management, mechanical behavior, seismic (natural disasters in general), computer simulation, water processing, new material development, biomechanics, Big Data Analytics, renewables, mechatronics, automation, IT applied to education effects of seismic on machine automation, nanomaterials, failure prediction and reliability.

Would love the development of a mechanical engineering department heads meeting in South America. Opportunities/Needs/Requests

• Every country in South America should have a local section and chair (+ region) • International business networking for students and educators and industry—globally.

Inspire! ASME conferences in South America with a local technology focus for students,

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professional engineers, and industry (providing state of the industry context in the continent—include competitions with Latin America flavor to inspire students)

• Help strengthen dialogue among academic institutions throughout South America • Help integrate the efforts of ASME student sections in South America • ASME facilitates the networking of universities and industry (ASME has access to both).

Facilitate: Industry mentors for universities and students; capstone projects • South America is seeking learning opportunity: renewables, transportation, water, seismic,


• Need a bridge between academia and industry: Strengthen communication/link between universities and industry.

• Broaden the exposure of Standards & Certification in South America. • Creative teaching tools and techniques (e-learning w/Masters classes?) • Soft skills training • Rotate industry conference in South America (such as PVP) involving local participation

and organization • Publish text books (update old engineering tomes) • Better market ASME’s efforts in South America to the local stakeholders in the local

language (EngineeringForChange.org can serve a significant conduit in engaging universities and local communities.)

Session 3 – Industry Q 4.1 ASME generates content and networking opportunities for industry. Can you tell us how local industries interact, and how professional engineers network in Perú and Latin America?

Q 4.2 ASME is engaged in workforce development. What are the biggest regional challenges associated with creating a workforce that is sufficiently skilled in the areas that industry needs.

Q 4.3 Our research shows that mining, oil and gas, power and transportation are important growth industries in Latin America. What role can you see for a professional organization such as ASME—an unbiased source of content and codes and standards—in the growth of the region’s industries and economies?

Competitors are non-formal and strong competitors. Competitors work with lower standard of quality. They say that they have the standard, but they really don’t have the standards. There have been cases when our competitors have had low welding and material standards. I’m not accusing anyone. Just demonstrating the landscape. These are standards for applications like LBG pressure vessel—small for domestic use and large industrial ones. Customers accept the lower products. Some laws state that they have to be ASME standards, but not certified by ASME inspectors. Government and insurance companies need to be involved in order to better regulate. Here, in some areas, the insurance companies requires the stamps, the government does not. We don’t have enough leverage in conformity and assessment. The mining sector demands qualified inspectors, accountants, etc. The customer was driving quality labor force, quality processes. We export a strong workforce to Chile, Argentina, Mexico, Saudi Arabia, etc. There are two different types of customers: international customers and the local customers (local investors). The local ones accept lower low-cost standards. These accept more risk. We need to show these clients that they need to increase their standards.

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There’s a great deal of informality in this country. Limited regulation. Therefore standards are not followed by many companies. It starts with customs related issues—materials and other products that come in are poor. What has become normal is a system that accepts the standards that the customer sets, instead of the government setting the standards. There are different levels of “informality.” Companies that follow the rules fall victim to rules that are not equitable. Supply and demand: if you build a strong workforce, you must have a market for them to work in. Session 4 – Government and Professional Societies Q 5.1 Can you give us an understanding of how government entities, industry, and professional societies collaborate in Latin America? Q 5.2 Can you give us your perspective on the types of engagement—with organizations such as ASME—that can benefit industry in your country and in Latin America? In Colombia there is an association that governs all the engineering societies in the country. In Peru, a very infrastructure exists. Peruvian department for Quality (INACAL) works closely with industry and thus with ASME standards. We are working with industry especially with standards re tanks. We are working in three areas: industry, government and academia. With this balance we set standards. We also do testing. We do certification. Vice Minister of Mines: What is the role of the ministry of energy and mines? We promote investment and production and determine procedures to follow in approving projects. We don’t work with standards per se. Osinergmin oversees whether safety regulations are followed. For example, we work with hydrocarbons and whether they comply with standards. These include standards and codes specifically for pressure vessels. This organization is not authorized to “recommend” the use of ASME codes. The ministry of energy and mines is the group that establishes the standards. How do industry, government and professional societies interact? Who defines which standard is used? INACAL produces the standard, the ministry of energy and mines says it has to be used and makes it mandatory, Osinergmin audits. In Peru, the government “makes” the standards. Professionals or industry requests a standard. The government agrees, then the standard is created. The reference is an international standard. So Peru’s mechanical standards are based on ASME standards because they are world renowned and also industry standard. The most important collaboration is on how to interpret the standard and how it fits into the different countries and industries. In technical committees, we understand it’s a package of standards. The school of engineers participates greatly in technical standards committees. Those participating include members from industry, consumers, and technical groups. We’ve been trying to arrange a codes committee with ASME to exchange ideas and information. It was for tanks but it was to exchange information. Our standards need to be

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national standards. We also adopt international standards. We don’t have a model by which we adopt international ASME standards. They base their national standards on ASME standards but they don’t use ASME standards. ISO is different. What is the criteria: WTO does not refer ASME as an international standard; the other reason is because others standards are ISO international standard (one country/one vote), ASME is a technical standard. In Colombia the national institute of standards develops the standard. In Peru if we participate in Codes Standards committees then we may be able to influence the national standards. Osinergmin aggregates a combination of a number of standards. How it works:

INACAL produces the standards using consumer, industry, and technical input INACAL standards are voluntary The ministry can make them mandatory The ministry can choose to use the international standards or ASME standards In technical sectors (like oil and gas), generally they are international standards. Osinergmin ensures the usage of the standard.

But it’s even more complicated. Certain areas have exceptions. INACAL approves the committee members. They have to be engineers from the Colegio de Ingenieros. Unless you have a PE you cannot participate in the committees. These are the committee members. If we want to increase the PPV codes in South America, we have to find a way to reduce the price. Colombia’s relationship with AIChE and other societies was based on drawing up a wish list of potential areas of interest. One of the fruits was a joint conference on engineering challenges. Topics of interest in the region include local real-world problems. It may not be feasible to have a large regional conference. Some takeaways from meeting with Ambassador Nichols: Some of the challenges and constraints to growth for Peru are:

• Governmental (bureaucratic) • Education • Corruption • Racial conflict and unrest

There has been a $16 billion investment from Brazil to Peru. Some of the largest copper mines in the world are in Peru. Peruvians support extracting efforts, but there is significant opposition. There is some improvement in math and science in Peruvian high schools, but a lot of work remains. There is great centralization of the Peruvian population in the Lima area. 80% of costs are centralized. But Lima cannot be the only place where growth takes place. There needs to be growth of other cities as well. There is a development project related to a metro system/subway. Expected to be completed in 2019—but doubtful.

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There has been an El Nino effect in the weather that has impacted the economy. Water is an issue for Lima and also for other areas. There is a need for increasing training and capacity building. This is important and may be an opportunity for ASME. There is great “informality” in business practices in Peru. Efforts to limit this informality are met with governmental stumbling blocks. Peru is a unitary state—decisions are not made regionally but centrally. (Definition: a unitary state is governed as one single power in which the central government is ultimately supreme and any administrative divisions [subnational units] exercise only powers that their central government chooses to delegate.) Globalization of American standards is a challenge. China is a huge investor in Peru—second largest trading partner outside of the United States. This presents a challenge for the standards community because Chinese companies may transplant poor product development to the area. There is a need in Peru for better trained scientists and engineers. This may be an opportunity for ASME. In order to engage Peru, ASME may want to work with:

• The American Chamber of Commerce • Private Sector • Lima Chamber of Commerce • Universities • COMEX Peru (Peru’s foreign commerce society) • The Public Affairs section of the Embassy. Ricardo Pelaez (Senior. Commercial Officer): The embassy funds science camps attendees to the U.S. We consider trade missions. We set up seminars.

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AppB-1d_Peru Trip Notes-Opportunities – John Falcioni Session 1A – ASME Professional Members Technology Needs:

• Mining (big equipment, for example cranes, conveyors) • Oil and Gas • Heavy Equipment

Industries • Mining (renewable energy?) • Energy (Oil & Gas, Power Plants) • Transportation • Infrastructure (water management)

Opportunities/Requests 1. Reinstate district in Latin America (what is strategy/model of other professional

organizations in Latin America?) Need to better integrate activities regionally. a. SME – student workshops in Latin America b. IEEE –conferences

2. Provide various membership models: Specific by industry or interest. May include access to limited C&S knowledge. This may stimulate membership and membership growth.

3. Access to codes and standards by various levels of access. (C&S primer course “preview” of relevance of a code to specific customers.)

4. Local support/contact (for different types of access—speakers, publications, SMEs, etc.) 5. Have more local qualified inspectors. 6. Personnel certifications by industry segment (code related). Education 7. Build bridge between industry and academia. 8. Professional Masters Program? Course sequence assembled by ASME offered at

university by experts identified by ASME. Joint sharing of tuition revenue. 9. Program development around SMEs. 10. ASME as provider of specific industry/technology training—deployment via local

universities. (How customer pays? Corporations would pay for training.) Session 1B – ASME Student Members IEEE offers a good model for ASME as it provides two large events that provide networking opportunities regionally. These are organized by IEEE headquarters. These provide an opportunity both for student, professionals and industry to experience broad opportunities in the profession as well as fill more personal needs (networking, training, etc.). The number of student sections is shrinking (from 7 to 5). It’s important to focus on the growth of student membership. The solution may be to develop a mentorship/tutor program. These student sections need to be well supported and continued support.

• Better delivery of the benefits of the promise of membership • Provide student section leaders more support and training.

o ASME merchandise as marketing during events • ASME South America full-time local representative who would be a strong advocate for

the needs of local members, students and professional members. • We need a student representative from South America to advocate for us. Someone


• ASME.org e-mail alias for students.

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• Better ASME marketing, encouragement and promotion focusing on greater participation in ASME events/contests (such as HPVC).

• Provide greater understanding of ASME C&S to students (through an interactive app?). This also serves to expand the ASME reach among students and others.

• Enable a broader voice for Latin American students. Give students a voice in determining section and regional direction and activities.

• Grow local sections. Not doing so is a wasted opportunity because there are a lot of interested students in ASME that would then become professional members.

• We want leverage for the student sections. ASME can be more formal in its approach to developing local sections and celebrating their development.

• Greater acknowledgement for the work of local student leaders.

Session 2 – ASME Academia Opportunities/Needs/Requests

• Every country in South America should have a local section and chair (+ region) • International business networking for students and educators and industry—globally.

Inspire! ASME conferences in South America with a local technology focus for students, professional engineers, and industry (providing state of the industry context in the continent—include competitions with Latin America flavor to inspire students)

• Help strengthen dialogue among academic institutions throughout South America • Help integrate the efforts of ASME student sections in South America • ASME facilitates the networking of universities and industry (ASME has access to both).

Facilitate: Industry mentors for universities and students; capstone projects • South America is seeking learning opportunity: renewables, transportation, water, seismic,


• Need a bridge between academia and industry: Strengthen communication/link between universities and industry.

• Broaden the exposure of Standards & Certification in South America. • Creative teaching tools and techniques (e-learning w/Masters classes?). • Soft skills training. • Rotate industry conference in South America (such as PVP) involving local participation

and organization. • Publish text books (update old engineering tomes). • Better market ASME’s efforts in South America to the local stakeholders in the local

language (EngineeringForChange.org can serve a significant conduit in engaging universities and local communities.).

Session 3 – Industry • Influence the regulating organizations (and insurance companies) so that enforcement in

South America occurs as a general practice. • Greater exposure to the breadth of the ASME portfolio (training, C&S, etc.), then train

industry leaders on our offerings. • Work more effectively with local universities. Need for better ASME awareness in the

region. Raise the profile of ASME at the university level in South America. Other professional organizations have higher profile.

• Market the ASME C&S program more effectively to key stakeholders in Latin America.

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• Education World Economic Forum reports that educational level in Peru is low. Technology training is needed. ASME may be able to develop a professional development program for young engineers.

• Better access to ASME codes. It’s too challenging to obtain the information due to cost and language. Access to different sections is challenging.

• Train university professors in ASME codes in order leverage their use in industry. • Be a champion of codes and standards training through ABET. • Identify a local standards champion, take him to training in the U.S. • Create a C&S Fellowship program. • Create C&S workshops for industry. Model can be replicated throughout South America. • Shift toward hydro and oil and gas, presents an opportunity. Other opportunities in

general infrastructure, transportation, etc. Session 4 – Government and Professional Societies

• Bring technical support. We need to have a way to better interpret ASME’s standards (Osinergmin).

o Establish a communications channel between ASME and Osinergmin and other standards organizations for technical support and education.

o Osinergmin would like it’s technical team to open a communication channel for learning opportunities with ASME

• As part of the Colegio de Ingenieros & Colombia may be open to participate on ASME standards committees. ASME can offer various options for participation.

• Colombia may be interesting in developing a professional-training infrastructure with ASME.

• There may be an opportunity to come to an agreement on accreditation of testing procedures, and the interpretation of ASME standards.

• Increase regional support by increasing ASME membership in the region. o On admittance to the Colegio de Ingeniero (one-time cost $400 + $100/yr) they

must become members of ASME. An MOU between Colegio de Ingenieros and ASME. Colombia is agreeable. Feasible in Chile?

• The Colegio de Ingenieros may be able to serve as a conduit for ASME’s potential involvement in areas of technical transfer in the region.

• Local are needs advise and learning on inspection best practices (conferences and workshops).

• Ministry of Energy and Mines: Develop a communications bridge between Ministry’s technical team and ASME code committees. May be possible in Colombia and other countries in South America.

• Embassy may be open to facilitate meetings among local stakeholders and ASME (administrative fee-based service).

• Osinergmin offers forums and workshops. They always seek technical sponsors. ASME may be able to bring technical experts to these events. Osinergmin may be open to paying for travel, but cannot pay a fee to the speakers. (ASME has a technology portfolio. South American entities may be able to take advantage of some of these assets.

• There is some interest in potentially building regional conferences with ASME focusing on case studies (such as on oil and gas, mining, energy/water, transportation, solid waste management, etc.). (Driverless?)

• Need for professional internships programs focused on areas of emerging technologies. • The local area needs to better understand ASME’s codes program and its spectrum of

programs.

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AppB-1e_Peru Trip Article HBR

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AppB-1f_Peru Business Cards

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AppB-2a_India Trip Notes – Roe High Level Takeaways from BOG India Trip Perspective – India Rising

2. As the second most populous country in the world (and perhaps on the way to being number 1) and with a national priority by the Prime Minister (PM) on building infrastructure and improving its global business standing, a strong penetration of the Indian market seems possible and represents an outstanding potential for ASME. There are many reasons for this, but it is the confluence of a number of factors that seems to position the country to expand on a significant basis economically. Some of this is discussed further below.

3. As seen in the attached article published in an Indian paper during our visit, India may potentially be as or more favorable an investment alternative than China, for a number of reasons:

a. Very large market; similar size market to China, and growing rapidly, b. Political stability, c. Western orientation, d. Common language, e. Acceptance and interest in ASME and ASME standards,

i. Not a standards competitor as is China f. Rule of law more established than China, though changing, g. The pool of US educated ASME members who returned to India, h. An increasingly global player starting to reach into other parts of the world. i. But there are some offsetting negatives,

i. Most notably that it can be a tough place to do business, ii. Gov’t regulations, and iii. Others.

4. With the Government and Prime Minister’s drive on two fronts: “Make it India” and the national Information Technology (IT) Initiative, there is a tremendous emphasis on skills development, particularly in the engineering world. This and prior initiatives have manifest themselves in (1) an over expanded engineering education system which has led to a lower average quality of graduates and now cut back in the number of technical schools; and (2) a significant demand for professional development to advance and redirect the skills of the existing professional workforce. Given the graduation of one million +/- per year (number was reported quite differently, but is very significant) and the existing engineering workforce, this represents significant training and development requirement/opportunity

5. Lest there be any doubt, Indian industry is rising and world class in many quarters. It is world class through very large indigenous global companies such as Reliance, Larson & Toubro and TATA, but also through the multi-nationals like General Electric and others who have put down roots for major international research and design centers. But the benefit to ASME is that as a country, they are early in the “S Curve” development, rather than in the later, more mature phases.

6. The ASME brand is strong and well respected in general across all the groups we saw. There seems to exist a reasonably broad understanding of ASME’s offerings beyond just C&S, depending on the audience. As an example, one person rattled off three or four areas that ASME adds value and never mentioned standards! Of course, there is still much more that can be done in expanding the brand.

7. There is a strong thirst and receptivity to ASME getting more engaged, and an apparent willingness to help do so. With this thirst for knowledge and an expectation that ASME has a lot to offer, the sense of wanting us to get more involved was almost palpable. Though it is often hard to have to hear it repeatedly, IEEE has taken steps to ride this

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wave and has dramatically engaged students, academics, professionals and industrial organizations in a much more expanded presence. While we may want to do things a bit differently than IEEE, the engagement results of IEEE’s efforts would seem to demonstrate the potential is there.

8. In the five years we have had a representation office in India, we seem to have established strong connections and a solid, though modest presence. This conclusion is reached in part by noting who showed up to our meetings, but also the visible relationship between ASME staff and the Indian representatives. We have the kernel of an organization to lead us forward to an expanded presence it our strategy takes us there in India.

9. Overall, with India on what appears to be a rising path, the market represents a positive combination of opportunities and challenges for ASME. We have a solid, though modest foothold, a solid brand, some strong relationships and entry points and an opportunity to get into a significant market at the early stage of what could be a significant expansion. But as with any large and complicated market, to effectively pursue these opportunities, we need a well thought out entry strategy, set of priorities and overall plan to be sure we optimize the return on the investment and payoff to ASME.

High Level Observations and/or Strategies 1. Strategy Development and Executive Level Engagement 2. Should consider using ASME power to convene to initiate and maintain a high level

dialogue at the executive level – perhaps similar to the IAB in the US – where engage people like Vinod Kumar of GE and Maresh Gupta of TATA, etc. on topics of technology direction, industry challenges, etc. Can be value to cross fertilize industry people as well as inform ASME of key issues and opportunities that lie ahead. Would be in essence an IAB type organization in India. 1

3. Expansion of ASME Activities on a Broad Base a. Have a great resource across India in the many US educated ASME members

who have spent significant time in the US involved in ASME and have now returned to India or are working in India. They know and value the model and what ASME can do and from those we spoke to are enthusiastic about ASME and could be engaged to help. As part of an India strategy, we need to find them (some easy, some harder) and bring them back into the fold.

b. Believe a well-integrated strategy and set of programs can lead to a significant expansion of activities at multiple levels in India. I believe there is the potential to offer virtually a full range of products and services in the process. It will take time, but with further investigation, I would anticipate the timing is very good.

4. Conferences a. Conferences are a key area for potential expansion within India in two modes:

i. Global conferences that can be rotated to India ii. Regional and/or local conferences that the region and/or India can

organize. b. Re conferences, as one at Reliance noted: before 1990 engineering work was

done outside India. Now all the big players are here. With all the work done here, should have conferences here.

1 Additional thought on IAB type group: Came across that the time could be ripe to possibly convene and set up an IAB type group in India. We probably met the core members of it during the visit. Thinking out to the future, employing this model, could set up 3 or 4 IAB type forums in different regions of the world to meet 2 or 3 times per year as a region and then have an annual Global IAB Conference where bring these individuals together. (I recognize IABs take a lot of TLC, so the trade off in value would have to be made.)

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c. Similarly, there was a broad sense from a number of the companies that it is too expensive to send so many people for training to foreign conferences. With size of the market, ASME needs to help bring more conferences to India. These could be in country conferences only.

d. There exists a strong feeling that ASME needs to allow more local engagement in planning global, regional and India-only conferences located in-country, from significant support participation for global conferences to HQ oversight only for India in-country conferences. Not that they don’t appreciate help, but there is a sense of competency and knowledge re local customs, costs, culture and issues that would yield a more economically viable conference.

e. Believe a broader Power Generation Conference would of strong interest by many. Reliance specifically mentioned it and said they would participate. Would also tell their suppliers to go. Believe others would also. Should include some C&S training or workshop components. This corporate push behind attendance has obvious value.

f. The Gas Turbine Conference was mentioned many times as a good conference and an example of what there should be more of. Has been annual, now going to bi-annual. Apparently a participation issue. Feeling that ASME could help make it better.

g. Also a feeling that ASME HQ has too heavy a hand in the conference planning and development, that more autonomy is needed. Impact is that the costs are higher and attendance is lower. Collateral impact is that there are fewer conferences developed and lesser engagement by faculty. See some discussion below in Session 8. May want to look into some of the issues raised to see if there is merit to changes in process.

5. Student Sections a. High level of enthusiasm, interest, capability and dedication to ASME amongst

the students! This is an important area where we can build for the future and much is already in place.

b. With many hundreds of engineering schools, there is significant potential for additional student sections.

c. Seems to be feeling of strong need to develop the student sections network. While already have 95 ASME sections and 8,000 student members, there is a strong feeling that they can be much expanded. More of a network would support better collaboration.

d. Feeling that if could engage more faculty in ASME, that the students would follow. One avenue for more engagement of faculty would be opening up more conference development opportunities, which has collateral benefits.

e. See notes from sessions 7, 8, 9 and 10 for more info on student section issues. 6. University education

a. Huge gap here in the quality of the engineers graduating and the needs of industry. Graduates leave university with a theoretical education and no practical skills.

b. A number of the companies have augmented university education through additional training programs where they asked the question: can ASME help bridge the gap between graduating engineer and the needs of industry? Many have a list of topics and are willing to share them.

7. Professional Sections and Networking a. In some companies (like GE) more senior level engineers are expected to

participate in professional organizations and so are likely to get involved in forming and developing sections in their locale.

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b. Belief by some companies such as GE that ASME could develop local chapters in places like Bangalore. This could be an important part of strategy development in India.

8. Professional Development a. Some companies have or starting academies to train engineers with interest in

possible ASME course participation (Reliance, L&T, TATA, GE). Obviously this would be a great entry point to more fully connect with these significant organizations and expand our relationship to other areas.

b. For Reliance and some industrial entities, having an “ASME trained engineer” has real meaning, sets them apart and conveys a sense they are well trained. Problem: not sure exactly what that means and how it is manifest or doable. But this is a real “brand value” that we could build on if we could craft programs that made economic sense.

c. Reliance (and others a number of times) raised issue of cost and accessibility to courses and training was an issue. Medium (in person, eLearning, video, etc.) and /or venue and pricing need to make courses readily available and very affordable.

d. GE noted that what need are engineers with a global focus, more than just local experience. Try to find ways to get them global problem solving skills. Problem is a global problem, not just in India. Believe ASME could help. There is a similar issue of Professional Development as engineers get into mid-career.

i. Potential role for ASME to become a forum for professional development training offering to multiple organizations. Currently GE tries to go to different universities to develop programs and it is not efficient. Common PD programs would be better.

9. Codes and Standards a. GE executive Vinod Kumar noted that he felt ASME could have a key role – a

“huge opportunity” – in the region to work with different country bodies to convene regional standards setting activities to help coordinate and update each country’s standards. GE and their competitors would participate.

b. Many companies said they are willing to participate in C&S committees if afforded the opportunity. While we explained that openness to this and the already extant global participation, this is something we need to develop further.

c. While there may be more interest in participation, there is a caveat to code committee (and other committee) participation: it is too costly to travel multiple times per year to go to face-to-face meetings. Could do once a year, but should use WebEx type conferencing to facilitate more global participation.

d. Engineering graduates and ECE have little knowledge of C&S. There was a comment from a number of the groups as part of the general educational discussions and the C&S discussions that there is a feeling that some way is needed to allow access to the standards training at nominal or no cost so they can learn about them and how to use them.

10. Membership Engagement a. As we heard with some other companies, GE engineers’ engagement in ASME

has fallen off in recent years due to low level of activity. Many have been more involved in ASME in the past. It could be rekindled with development of meaningful activities. In fact, GE engineers who attain the level of “Principal” are expected to participate in professional organizations. They do so with IEEE or others due to the current void with ASME.

11. Journals, Publications and Publishing 12. Government and Professional Organizations

TECHNOLOGIES MENTIONED:

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Technology Areas Mentioned

Relia

nce

L&T

Tata

GE

IISc

IEI

Sess

ion

7

Sess

ion

8

Sess

ion

9

Sess

ion

10

Gov

t/C

II

1. Oil and gas X X X 2. Pharmaceutical X X 3. Telecom X 4. Advanced / Digital

Manufacturing X X X X X

5. Sustainable Manufacturing X 6. Renewables (Solar, wind) X X X X X X X 7. Energy (general) X X X X X X X 8. Defense and Aerospace X 9. Materials X X 10. Advanced materials with

advanced manufacturing X

11. Internet of Things X X 12. Big Data Analytics X X 13. Mechanized Farming X 14. Gnomics X 15. Food security X 16. Clean Water X X 17. Transportation X X X 18. Bio-medial, medical

devices or healthcare X X X

19. Forest Products X 20. Agra Products X

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CONFERENCE TOPICS MENTIONED

Conference Topics Mentioned

Relia

nce

L&T

Tata

GE

IISc

IEI

Gov

’t/C

II

1. Manufacturing X X 2. Power Generation X X X 3. C & S for Domain Experts X 4. Aeronautical engines (GT?) X 5. Energy X 6. Transportation X 7. Solar PV, renewables X 8. Bio-medicine and Pharma X

TRAINING TOPICS MENTIONED

Training Topics Mentioned

Relia

nce

L&T

Tata

GE

IISc

IEI

Gov

’t/C

II

1. Codes and Standards 2. Hazardous chemicals x 3. Corrosion (more serious

issue in India) x

4. Failure prediction x 5. Containment x 6. Welding x 7. NDT x 8. Safety x

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More Detailed Items from Meetings (some items are already incorporated above) Note that there are some potential actions and tactical opportunities mentioned below that are not included above. Also, comments reported are generally those of our guests and do not necessarily reflect agreement with their statements.

1. Reliance Meeting a. Reliance – there is a need for better understanding of C&S by graduating and

early career engineers. Reliance comment referring to using standards: “ASME is our bread and butter”.

b. Reliance has certified engineers program using internal courses at their Learning and Development Academy. ASME could provide supporting courses to help. Reliance executive said he felt this was a great opportunity for ASME.

c. Quality of supply chain is an issue for sub-tier suppliers from India and China. d. Many other Reliance comments incorporated above.

2. Larson & Tubro Meeting a. Networking: happens within companies, but not much within industry, though

there was a sense that it had real value (L&T, GE) b. Want more “physical networking”, but also to find more ways to do electronic

networking. c. L&T felt that ASME C&S has “lost touch” with customer needs re materials and

welding. Things changing rapidly and ASME C&S not keeping pace. d. Other Larson & Tubro comments incorporated earlier discussion.

3. TATA Meeting a. TATA discussion revealed they have a similar mission as ASME which

emphasizes improving global quality of life issues. Probably is an opportunity to work together for EGD type programs. They mentioned the potential to meet with their Brand Office and the Corporate Social Responsibility Office to pursue further. Note: Dr. Gopi has role in corporate responsibility programs.

b. TATA expressed the feeling that there is a need for more industry collaboration in India – a better forum for sharing.

c. Major conference coming in December: National Technology Conference. Sponsored by CII. Many CEOs will be there. Might be worth ASME participation – TATA.

d. The suggestion to consider co-op programs was made a number of times, but we were advised that the state universities (IIT’s) have a problem being able to do this. Private ones may not have the same problem, so maybe could do for Tier 2 and Tier 3. Is this something ASME can help in (and what is the benefit to ASME to be the facilitator?)

e. TATA University is for further development of the most promising engineers. Can ASME help on this? NOTE: TATA has 90 companies and due to varied ownership, they operate somewhat independently. Probably 10 companies have strong reason to connect with ASME and TATA reps said they could help us do so.

f. TATA expressed interest in the technologist career path. g. TATA (Ramesh Gupta) closing comment – “see real opportunity in India and a

multi-level ASME program in India could be great.” 4. India Institute of Science

a. IISc comments on Chapters, Membership and Networking i. Still don’t have an Indian Chapter so hard to keep in touch; result is a

loss of important networking opportunities.

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ii. Membership – some ASME members moved to IEEE because it is more active. These are high energy people who perhaps could be returned to ASME to help develop programs and sections.

iii. Comment by the “sage” (name?) – need forums for industry and academia to meet – important to get the engineers and academics talking to each other.

b. IISc comments on Conferences i. Strong need to bring global conferences to India. Also need more

local conferences. IEEE has 25 conferences each year. ii. Sense that more agility needed in support to conferences. Probably

means more autonomy. Get more local control and quicker responses from IEEE (30 days mentioned). Also seed money provided to support initiatives to start conferences with sharing of proceeds.

iii. The Gas Turbine Conference was mentioned many times as a good conference and an example of what there should be more of. Has been annual, now going to bi-annual. Apparently a participation issue. Feeling that ASME could help make it better.

1. Was suggested ASME might consider co-sponsoring with IEEE or others.

2. Need design conferences in India c. IISc expressed interest and willingness to support IShow in India (one was

already held this year) d. IISc - Video based training courses mentioned, particularly for more remote/

rural areas. e. IISc comments on Standards:

i. Question raised regarding integrated standards like joint IEEE and ASME as disciplines increase overlap.

ii. Suggested potential for certification of standards and products manufactured in India.

iii. need to develop standards to support new technologies. iv. Need better access and lower cost for C&S by students

f. IISc raised issue of journal participation vs being relegated to Technical Notes. Need for people to publish to improve resume and demonstrate knowledge. Is there a way to broaden opportunities in Journals and to publish?

5. General Electric Meeting at John F Welch Technology Center a. GE comments on Standards:

i. Mentioned that many companies have own standards and there are many competing standards. Feel there is a need for more common standards. Heavily involved in Indian standards organizations.

ii. Plant safety is an important issue and should be related to the regulatory and standards process.

iii. GE raised issue of certification of laboratories since some are found to not be up to snuff when they certify that certain requirements are met. This is a regional and Indian problem. Is there a role ASME can play in this?

b. GE Comments on Conferences: i. co-hosts many conferences with other organizations. Have

conferences at facilities every week. Could jointly host with ASME as do with IEEE. Tom Loughlin noted a particular opportunity to host a joint conference with GE on standards.

c. GE Comments on Training and Development

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i. GE noted that what need are engineers with a global focus, more than just local experience. Try to find ways to get them global problem solving skills. Problem is a global problem, not just in India. Believe ASME could help. There is a similar issue of Professional Development as engineers get into mid-career.

ii. Potential role for ASME to become a forum for professional development training offering to multiple organizations. Currently GE tries to go to different universities to develop programs and it is not efficient. Common PD programs would be better.

iii. GE – need deep domain experts. Trying to train but takes time. Is a smaller group with extensive training. Can ASME help on this?

1. Mike Rovins - sense was yes as the conferences can be arranged where the instructors are those who wrote the code. Could set up a Conference as a “platform for global people to interact” with workshops, forums, etc. to bring in high levels of expertise.

d. GE – suggested local chapter (senior section) in Bangalore. Suggested might even consider partnering with IEEE and ASTM or others.

e. GE agreed that there is an issue on engineering graduates not being ready to support industry needs and said they could provide a list of training needs.

f. Discussed how we can engage experts in Journals with GE. They have been involved with IEEE in peer reviews. Journals seem to be more academically driven, though IGTI is an exception and is more of a mix with industry. But no reason why they couldn’t be more involved.

g. GE discussion re: what can ASME do to help GE and India hire more women engineers? We mentioned WISE and there is potential follow-up with Sulka Chandra (GE female engineer/ executive) to discuss how a WISE program might be initiated.

h. Networking discussed with GE. i. Key vehicle is conferences; higher level go, lower levels are

nominated. Many involved in IEEE conferences but also could support ASME if held conferences locally. Can work with CII and should tie in the Government Labs and other relevant government bodies.

ii. Can have expos with industry papers iii. Should work with the Indian Institute of Science and Technology.

Have tried to do link between GE – National Labs – Academia as do in the US, but has not been successful. Can ASME convene a dialogue and forum on this? GE feels India needs an outside facilitator to make it happen.

i. GE comment (Vinod Kumar) – need to decide how to brand ASME as enter India more aggressively. Not as well-known as IEEE and so need to decide what value you want to bring.

6. Institute of Engineers of India a. IEI is a very substantial professional engineering organization and a potential

organization to collaborate with. See the presentation they provided of their history, programs, outreach, linkages with other organizations, and capabilities. They also suggested some ideas for collaboration – there is more detail in the presentation on many items for consideration.

i. Interestingly, they have 800,000 members and are the chartering body for licensing engineers in India. Upon questioning within our own group (considering approximately 1,000,000 engineers are graduated

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in India each year), their membership is not larger as it is not a requirement in India to be a licensed engineer.

b. IEI suggested 5 areas for potential collaboration: i. IEI Area 1: suggested ASME work with IEI to expand programs in

existing areas like Manufacturing, Energy, Transportation and a fourth. ii. IEI Area 2: suggested ASME could help in delivering solutions for Make

in India initiative. Areas suggested included: 1. Build on technologies available overseas 2. Involve C&S for improving quality 3. Had conference on safety – use damage models, programs,

etc. Need more. 4. Electronics hardware manufacturing 5. MEMS and nanotechnology 6. Materials technology

iii. IEI Area 3: Joint Continuous Learning to Update Knowledge Base and Joint Certification including:

1. Get and review programs for possible joint certifications to give them more credibility.

2. Help bring together industry – academia – professional organizations like IEI.

iv. IEI Area 4: India Specific standards and guidelines 1. Question raise d of how ASME could link with the Bureau of

Indian Standards 2. There are complementary strengths.

v. IEI Area 5: Improve both brands by joint industry awards 1. Awards would be at the national level. 2. Suggested we look for common areas. 3. IShow could be a possible area - we bring the show and the

awards program, they help expand the participation. c. IEI – with the initiatives of PM Modi, it is prime time for collaboration. d. IEI was asked (J Guerrero) to consider asking its members to join international

organizations like ASME. Said they would consider. 7. Session 7: Academia and ASME Professional & Student Leaders

a. Students organized by zones with zonal representatives. Formed a council and are led by a Senior Section Chair, Dr. Jadeja. There is a second faculty advisor from Hyderabad.

i. High level of enthusiasm, interest, capability and dedication to ASME amongst the students! Students gave excellent presentation on their activities. Was presented by Dr. Jadeja.

ii. Students have run a number of programs in India that have been very successful

iii. Note that Madhukar says we have 95 active student sections with 8,000 student members.

b. The Student Led Design Conference (SLDC) is the framework for their activities and is organized to:

i. Be a common platform to communicate and learn with each other ii. Increase technical and practical skills iii. Promote the SPDC iv. Promote the effectiveness/development of ASME and the number of

student chapters being started. c. Students identified 5 areas of events organized under SLDC

i. Invention Show – to promote IShow participation

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ii. Student Design Challenge – focused on robotics iii. Presentation Competition – to improve skills in 4 formats – Oral, Poster,

Web Page, Video. iv. Host Based Technology and Fun Event – focused on using

fundamentals of physics in a fun way such as hydro rocketry, balsa wood gliders, etc.

v. Student Training Conference – to improve skills d. Students are very active – had 7 events in October.

i. CBIT held in Hyderabad. Many others. ii. Looking to start a newsletter 2x per year.

e. Dr. Jadeja – looking for more networking opportunities. Conferences would be big help, including India regional conferences. Sees potential for evolving some SLDC events to more zonal and having a national student event that rotates around India. Zonal events should build membership and support national event growth.

f. Publications are an issue for students. Currently many publish in paid publications so can get something published. Need better access and ability to publish with more recognition. Student journal discussed and felt would be ineffective. Issue is partly having the Professors give more recognition to the student collaborators.

g. Suggested mentoring program to the two-thirds of the engineering colleges that are not ASME members or engaged.

h. A gap between students and industry exists. Needs to be filled and wondering if ASME can play a role. Work on design problem statements supplied by entrepreneurs and industry. Do it using cross functional teams. Could turn it into a competition.

i. Potential uses of ASME.org platform: i. Suggested localized webinars where Indian professors provide

seminars via ASME.org ii. Suggested providing an electronic forum for regular communications

– a web based platform for webinars (Tech Talks), etc. They are only asking for a tool with an ASME feel, they will provide the content.

j. Re the platform and communication issue, suggested ASME use Facebook and/or What’s App or Linked In as a communications tool with students.

i. Requested (KKRoe) students to consider how best to communicate with them on a broad range of areas across ASME products and services and functions.

k. How can ASME and universities collaborate? i. Courses are similar, can ASME provide some support or input on

course development? ii. Can other short courses be provided on a range of subjects and

provide certificates with them? But costs are an issue. Are there membership discount options?

iii. Issue raised re students understanding of the C&S is important. l. Dr. Mohan Reddy of NASSCOM- significant problem in quality of education of

engineers and the huge number of university graduates that will be coming (10 million) that will be coming into the workforce in the next 10 years.

i. Creates a number of challenges and ASME opportunities: 1. Point #1: Dramatic impacts of disruptive technologies as seen

in advanced manufacturing and Materials Technology. Need to stay up on these, so can ASME help on these technologies and other disruptive technologies.

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2. Point #2: the rapid pace of technology change in general means that engineers can become obsolete if they aren’t retrained. Need significant emphasis on professional development. Sees areas for ASME collaboration in continuing education, improving curricula and courses available through use of on-line courses,

3. Point #3: Need to support innovation. More innovation is needed to create jobs. Need to develop innovative organizations to create more jobs, so can ASME help support the innovation initiative.

ii. Skills development is a critical area. Have gov’t created National Skills Development Corporation of India (NSDCI). Goes beyond just education, but into actual skills programs. NASSCOM is working with NSDCI and believes it would be beneficial to develop linkage with ASME

8. Lunch and Session 8: ASME Leaders & Other Professional Organizations a. Dr. Anil D Sahasrabudhe – Chair of All India Council for Technical Education

(AICTE). Is the technical education regulatory body. i. Key in setting curricula and the recommended technical library

content at universities 1. Its recommendations have brought ASME $1 million in revenue

ii. Sees ASME helping on issue of loss of quality in recent engineering education:

1. Open up membership and offerings 2. Add more conferences – is key action 3. Make clear the benefits of membership 4. Participate in supporting accreditation through their version of

ABET. iii. Also feels important to assist in US – Indian university collaboration.

Can work through Gov’t sponsored program GIAN (Global Indian Academic Network?) which support 1 to 2 week exchanges that are compensated.

iv. Bring in more on-line content v. Suggested internships – can ASME help facilitate finding industries for

internships. Industry can’t do it on their own vi. ASME Journals need to be more accessible – cost is high. Question:

since recommended by AICTE can there be a discount to get broader coverage?

vii. Very limited knowledge of standards by students/graduates. 1. Question whether could disseminate free standards training to

all Indian colleges to broaden use? M Rovins: Yes. 2. ITMA is provider of C&S in India 3. Could put course on AICTE site and broadcast to schools 4. Also have an e-book on intro to standards for purchase.

b. Dr. Suzie Sengupta i. Sees potential for ASME to operate as a Gateway for Engineering

Exchange. Would use to access to courses, professional development, etc.

1. Saw in Canada but is missing here. ii. Sees much less interaction between industry and academia than saw

in North America. In NA saw industry people teaching master’s program courses and joint industry/academia conferences.

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iii. Can ASME facilitate in these areas? c. Dr. PVM Rao (ASME member for 15 years)

i. ASME brand in some quarters (compared to IEEE) is perceived as 1. Less inclusive 2. Has “American” in it 3. Still looked at as an American organization.

ii. Suggestions on how to change the perception: 1. Bring the faculty on board ASME – then the students will follow

and numbers go up. 2. Bring/initiate more conferences to India – will broaden brand

and engagement at many levels 3. Increase participation of people from all parts of the world in

all ASME activities 4. Need platform for engagement of faculty 5. Differential pricing in membership

a. By country – “done in IEEE a long time” b. By conference participation – ASME does some of this c. For workshops - membership free for 1 year. But ASME

needs more events. iii. Platform for Faculty engagement? Good model is GT India

conference 1. Used IGTI model and started own in 2012. 2. Grown from 1 day to 2 days and in 2019 scheduled to host the

IGTI conference (approached by Mike Ireland) 3. Model is a good model and should be tried in other areas.

iv. Conference Issue – Dr. Bhaskar Roy (has been attending IGTI Board meetings the last 4 years)

1. Issue is large conference vs small conference – 3,000 vs 300. 2. Can’t support same costs but “laws and bylaws get in the

way”. Some of the contract terms are very onerous – there are cross cultural issues. (E.g. can force shift to 5-star hotel which was too expensive and caused loss)

3. GT India has ~250 attendees. Thinks could be 1000 except costs are too high.

4. Believes there is need for more autonomy on some issues. ASME HQ does too much: sets dates, sets rates, and has too many requirements, like an event management company which they feel they don’t need.

a. With cultural differences, need to do some things differently.

5. Believes these are some lessons learned that would be good input to building the engagement model.

9. Session 9: Government & Industry Leaders a. Discussion on Workforce Skills Development

i. General discussion similar to before that students graduate lacking skills

1. Industry wants them productive on day 1 and they are not. 2. Priority for training is second to work and production.

ii. AJ Patil (Alstom) – engineers are purely theoretical 1. Alstom does some mentoring/understudy training for 2 years. 2. Need to understand missing skill sets.

iii. Question: would industry support programs for training if available?

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1. CII – some already doing off line 2. KBSingh (Industry Pipelines) – thinks need a 6 year Eng’g

program to give 2 years practical experience (sounds like co-op program, but not sure)

3. Feeling that ASME could help solve this problem. b. Water pipeline standards needed (KB Singh)

i. Have American Water works, but not enough. ii. Should move fast - Spending $15 billion on water infrastructure iii. J Guerrero mentioned S&C has process to put together group to help

pursue something like this. c. Suggestion ASME find a way to get students together electronically to

collaborate and provide training d. RM Sundar (Siemens)

i. Echoed student readiness issue 1. Siemens has intern program, but still have a problem with

students linking with industry 2. Cans ASME use student sections to improve industry links and

work more with companies, particularly at the graduate level 3. Bottom line is that he feels we need graduate student chapters

(or integrated chapters with U/G, though hasn’t worked in past in India)

ii. Standards in Probabilistic Risk Assessment (PRA) are needed

10. Session 10: Industry, Academia & ASME Leaders

Can India Really Be the ‘Next China'? Geoffrey Garrett

The bulls say India is the 'next China'. Odds are

they are right, if not today then within a decade or so. But even if this proves to be right in terms of growth, India is a very different country than China on many fundamental dimensions, demography and democracy being key. But most importantly, China has been built on infrastructure, investment and manufacturing, while India has barely scratched the surface on all three.

India began its economic reform in the early 1990s, more than a decade after China. But in the past 25 years, China has turbocharged its economy while India has languished in relative terms. Why?

Chinese growth has been driven by some of the world's highest investment rates. This has, in turn, made possible an infrastructure revolution of new cities, high-speed rail lines, airports and ports and manufacturing muscle that is the envy of the world. China has also been the world's factory for 20years. Its ability to quickly and efficiently move what it produces domestically and around the world has been a critical ingredient in its growth miracle.

technologists to succeed is to work in the US for American firms. Homegrown, and still home-centered, companies like Tata Consultancy Services (TCS), Infosys and Wipro are real world leaders when it comes to information technology. And Indian entrepreneurs are killing it today in startups with people like Punit Soni at FlipKart and Kunal Bahl at SnapDeal.

The growth of Indian tech has been fueled by large-scale private sector investment, from both India and abroad. These companies needed infrastructure to thrive, but the infrastructure was digital, not physical. – allowing Indian IT firms to beam information and analysis from India to the world and back, long before anyone was talking about 'the Cloud'. They didn't need to ship widgets because their products were all in bits.

About a decade ago, some optimists thought India could leapfrog over the manufacturing and physical infrastructure stage of development (widgets) to build the whole economy around digital (bits). Today, it is clear that while India's tech sector is fantastic and growing, the country will have to develop the old-fashioned way, with better infrastructure and more manufacturing.'

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From the TMF Group (a global business operations services firm)

“Not only is India one of the fastest growing countries in the world, it is also going through a period of unprecedented economic liberation, granting overseas investors more access to its vast and varied market than ever. A large, young population and a strong export sector await expanding businesses, with a potential consumer base that far outstrips most other nations in the developed and developing world.

“Political stability and broad consensus on reforms is also a big pull for expanding companies, and the well-developed banking system and vibrant capital market highlight the maturity of its financial system. But doing business in India can still be a troublesome endeavor, and having local help can really make the difference to the success of your venture.”

Today, India lags far behind China on all three dimensions. India invests about 30% of its GDP, compared with about 50% in China. Manufacturing is about 20% of the Indian economy, compared to China's about 30%. China has arguably the best physical infrastructure outside the western world. India looks more like the poor country that it still is.

But this is a real opportunity for India. Increase investment. Improve infrastructure. Grow economic output. This is a tried and true path to financial growth, and it is one India is poised to follow.

Consider India's vaunted tech sector. We all know about the incredible Indian talent running some of America's tech icons. Google's CEO Sundar Pichai did his undergraduate degree in India before coming to the US for a Stanford Masters and a Wharton MBA. Likewise, Microsoft CEO Satya Nadella received his undergraduate degree in India and followed up with diplomas from US graduate schools. These and so many other Indian-American tech sector executives are testament to the power of the immigration-innovation nexus in the US.

However, don't let these rock star CEOs fool anyone into thinking the only way for Indian

What will determine whether India can become a bit more 'Chinese' when it comes to infrastructure and manufacturing? Unlike China, the answer will not be government investment, because the Indian state is hamstrung by endemic budget deficits of big subsidies and limited taxation.

The 'Make in India' initiative is so promising because it does not rely on the Indian government. Boldly launched with a goal of India surpassing China in direct foreign investment, 'Make in India' is a clarion call for global firms to increase their commitment to India. Now innovative firms as diverse as Samsung, Lenovo and Boeing have publically supported the initiative proving that the private sector is ready to step in.

Yet it seems that the private sector won't act until it is more confident to about politics. Nowhere is India more different from China than in the world of politics. But this doesn't mean that India won't go on a growth charge the way China has. The raw material India has to work with is so rich. The 'challenge now is to catalyze it. The writer is Dean, Wharton School of the University of Pennsylvania.

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AppB-2b India Trip Notes Condensed – Michael Rovins The common thread at most of the meetings included recommendations for a more robust conference business, which in turn, will provide a platform and improved customer engagement. Additionally, recommendations were shared to increase and to develop more student and professional chapters. Lastly, as over 12 million students enter the workforce every year. There was a strong recommendation for increased training both at the hands on/practical level as well as video based on line learning. India triple play of opportunity:

1. Working age population in India growing by 1 million people every month. Conversely, developed nations are aging and wages are rising

2. India has a lower cost of labor 3. Government has vowed to build better roads, clear red tape, and take other steps to

vault India into the leagues of Asia’s industrial powerhouses. Additional opportunities include:

• Develop more local chapters • Consider courses to teach codes and standards to faculty • Increase overall number of conferences in India • Develop workshops in various locations throughout India • Develop an ASME distinguished lecturer series • Create centers for certification. Promote certification. Help build lab competency and

qualification / certification. • Focus on skill building – needs for both online and in person training. Include on the job

and classroom training for students. Develop video based courses- on line, self-learning. There is a need more practical problem solving and application solutions

• Develop Workshops and Conferences focused on 2nd and 3rd Tier suppliers to educate good manufacturing practices based on code compliance for pressure vessels, piping, fillings, valves, etc...

Recommendations: • Research viability and ROI for technical conferences in Advanced Materials and

Additive Manufacturing, other • Develop localized, customized training and development (both on line and in person) • Develop best in class on line video based training. • Launch a Conformity Assessment promotion workshop/conference

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AppB-2c India Trip Notes – GE – Rovins/Sharma General GE Research India is dedicated to develop new technologies. In particular in the oil and gas sector, concept to design, drilling and production systems, turbo machinery, and advanced technologies, for high computational analysis and materials testing. Main lines of business include healthcare, aviation, power, water, energy. 0il and gas transportation and wind energy

• Focus on oil and gas, power and water, aviation transportation • 3000 patents since it started in 2000. Only 100 patents filed in the first 8 years. • GE has Local P&L and decision making capability • Focusing on high end engineering systems • Challenges faced – Customer Pattern understanding , reshaping business model • ASME should focus on very specialized skills • GE is part of several standards setting committees (ASTM, API) • Advocating for the standards process as well as the standards themselves • Technical regulation for each market is challenging • Networking occurs through conferences, CII, trade expos • Plant Safety is a concern • Innovative learning solutions needed • Contemporary methods for training being developed – partnering with local universities • Each P&L of GE has a University • Expects ASME’s open approach to have Industry experts in its global editorial boards

Key opportunities

• Collaborate with GE on discussion about standards for local market • Localization and regionalization of standards • Investigate Industry consortium and role ASME can play currently with IWG India • Local students lack exposure. Programs needed that can help them train, be flexible in

approaching a problem to work out a solution, case studies, problem solving exercises. ASME can fill the space.

• Workforce development- need more practical problem solving and application solutions • Greater need for T&D and professional development • ASME to act as a technical forum. May include, seminars, conferences, workshops • Send GE US signed master T&D agreement to India office/share with GE India – done • Determine set of courses in India for GE • Growth in certification – help building lab competency and qualification / certification • Develop priority list of training areas by GE • Develop state of the art online training • Collaborate with GE India on conferences • Development of local section • Collaborate to develop pool of volunteer’s= professional way to interact • Diversity – engineering and science programs • IMPTEX Conference in Bangalore • ISNDT workshop and seminar • Collaborate with IEI and ISAE, have outreach to Govt. folks • Collaborate with national labs, Universities and GE (non-sensitive IP areas)

New areas of technology • Growth in solar technology • Standards in healthcare

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• Safety from plant perspective in oil and gas • Plant safety • Hot and harsh engineering issues

Summary GE continues to be a key advocate and potential sponsor for ASME conferences. Additionally, significant interest was shared in ASME T&D offerings. The US based master training agreement will be shared in order to expand global training opportunities.

AppB-2d India Trip Notes – IISc – Rovins/Sharma General IISc is the premier institute for advanced scientific and technological research and education in India

• 106 years Old Institute , 467 faculty, 2500 PHD students, 835 master’s program in engineering , only 120 undergraduates primarily in science , 50 international students

• Joint publications with Springer • Conducting 25 conferences with IEEE at an average of 250 INR = 5.00 for student

Delegates • Reaching students through local chapters conferences. Must be affordable • Need for development and support of local student chapters • Innovation and design courses needed Education – 1.5 million engineering graduates

per year • Digital collection research and affordability. • Standards for academics. • Need for the globalization of journals • Increase number of student chapters • ASME distinguished lecturer as a program to include 20 – 30 lectures per year. • Increase number of ASME conferences in India, but not merely ASME tagged. Authorship

and audience participation must be international • Publication access to other colleges in India • ASME Design & Engrg. Division reluctant to bring conference in India • Editors from India for papers from India

Key opportunities • Local chapters on campus • Design conference has growth opportunities in India • Teaching codes and standards to Faculty • Increase overall number of conferences in India • Develop workshops in various locations- Micro , Nano , Biomed • Develop faculty development training & certification programs and improve quality of

graduates • Design in Manufacturing – bring MSME ( micro, small & medium scale enterprises ) into

global exposure • Develop video based courses- video based , on line, self-learning • Multi- society chapters • Improve affordability and access to information (example- gas turbine conference) • Improve overall ASME visibility • Journal formats and technical notes

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• ASME distinguished lecturer series • Centers for certification • Courses in photovoltaic, reliability, solar design, medical device • Encourage more faculty as members • Separate Workshops focused on – Undergrads, Graduates and Post-Doctoral students

New areas of technology • Advanced manufacturing • Smart manufacturing • Network enabled manufacturing • Direct Digital Manufacturing • Sustainable manufacturing • Affordable manufacturing • Solar and medical device • Nano, renewable • Photovoltaic, reliability, solar design, medical device

Summary IIsc offered to work with ASME to assist in the development of workshops, as well as promoting ASME membership. There was a keen interest in “video based courses” for both student and faculty development.

AppB-2e India Trip Notes - Institution of Engineers – Rovins/Sharma General The Institution of Engineers (India), (IEI) is the National organization of Engineers in India. The Institution of Engineers has over one million members in 15 engineering disciplines in 114 centers or chapters in India and overseas; it is the world's largest multi-disciplinary engineering professional society in engineering and technology world. The Institution of Engineers conducts an examination of its Associate Membership. This examination is considered to be on par with B.E. / B.Tech.

• 800,000 members- 45% Civil , 25%- Mechanical • 116 centres , 28 state centres , 83 –local chapters , • 5- overseas chapters ( in GCC, Malaysia , Mauritius , Singapore , Australia ) • Next five year growth target – 300 centres • 15 engineering disciplines , Energy & Bio Engineering – New Discipline • Springer – publishing Aerospace Engg. journal papers • Constituted IEEE-IEI award for excellence • Has a Science and Policy research centre in Bangalore

Technology Projects in Progress • Legal / ethical certification • Transportation – Rail & Road • Crash Test Dummies development • Sensors & Devices • National defense and social applications • Bio printing & Bio Medical engineering • Wind energy • Innovation center for composites

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Opportunities • Joint certifications programs – workforce skill development for engineers • Faculty and Student training • Possible creation of ASME – IEI achievement Award • Pharma & Biotech- BPE certifications • Possibility of proposed conference on Advanced Materials jointly in June 2016 • Political support and outreach to technical govt. labs and research institutions

Summary IEI is eager to take the existing MOU forward. Consider plan in workforce development and certification in Bio process and work together to organize a technical conference in advanced materials and additive manufacturing.

AppB-2f India Trip Notes - Larsen and Toubro – Rovins/Sharma General L&T main businesses include manufacturing, boilers and turbines, heavy engineering, ship building, infrastructure, power, nuclear process industries, defense and aerospace

• L&T contributed to 22 nuclear reactors in India • High pressure gas exchangers and 3D modeling • Electronic packaging • L&T inquired whether there was one point of contact at ASME for interpretations. Can

mechanism be set up by ASME? • L&T suggested cooperation with ASME to identify areas of training with academic

institutions and acting as an academic and industry bridge • Need expressed for Pressure vessel Design inclusion in standard Engineering Academic

curriculum • L&T suggested ASME can be a leveling body for materials • Materials and welding standards by ASME are not a relevant as they once were. Need

updating. • Can memberships be dealt with corporate approach model?

Key Opportunities • Fabrication and pressure vessel design as growth areas • Would like to increase their participation testing of standards performance testing

growth in materials • Membership opportunities (group or corporate) • L&T would like to communicate with committees and be part of the conversation. In

particular, Section II and Section IX participation • L&T will sponsor” how to design” professional network needed in India • On line training – self-study – anytime learning – Can ASME fill the space? • Networking across industry a preferred network is needed • Need for professional chapters • Help in identifying areas of training with academic institutions- • Conference Participation overseas is unviable – can virtual presence , webinars , locally

held conferences be initiated by ASME • Defense & Aerospace sector specific - Third Party certification and Evaluation –– Can

ASME fill the space in any manner?

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• ASME Codes need to appreciate and adapt to new manufacturing processes and capabilities vis a vis rules.

New areas of technology

• Precision Engineering • Rapid Manufacturing • Additive manufacturing • Hi tech Fabrication • Melting and Forming 300T forgings • Pressure vessel design • Robust anytime learning programs • Performance testing • Growth in defense and aerospace • Boiler and turbines • Materials and composites

Summary Similarly, L&T stressed the need for a common “go to” platform for engineers. They also suggested improved accessibility of on line /anytime training. Additionally, L&T stressed the need for attention and adaptation to new manufacturing technologies, process capabilities ASME standards to remain current and relevant.

AppB-2g India Trip Notes – Reliance – Rovins/Sharma General Reliance’s main business includes oil and gas exploration, petroleum refining, petrochemicals, gas transportation, telecom

• Need for greater access to content and knowledge • Reliance products are 99% designed with ASME Codes and Standards • 2 types of Engineering Professionals – 1) project engineering personnel (groomed and

grown through in-house expertise and 2) design engineering personnel (acquired from other engineering companies e.g. – Bechtel, FW, etc.)

• Design Engineers – core users of ASME Codes • Project Engineers – peripheral users of ASME codes • Reliability Engineering – uses ASME codes as its design basis • Younger people not learning codes and standards. Need to grow future generation and

focus on training young engineers. Mostly in design engineering operating commissioning plants

• Technical Services agreements and Licenses with – UOP, SHELL, TECHNIP • There is a pressing need for practical /hands on training • Reliance developing a $15 billion gas recovery plant under development– gasification.

Offshore drilling BP are partners with a 35% stake • Constructed pipelines • Key areas of growth include verticals such as refining, petrochemical, E&P • Expanding into telecom 4G high speed systems • Reliance has a learning and development academy curricular development • Need for ASME to train with ASME curriculum • Need a technical forum where engineers can post questions and get answers ( more

than what code committees do presently )

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• ASME PCC’s -Post Construction Codes prolific usage and very useful as serve as practical guides. More such code publications need to be developed including trainings in PCC’s.

• Number of instructors still challenging in India • ASME E-learning content – has high cost • Gaps In Training – “Background or Rationale” of Requirements not explained. Needs

improvement Key opportunities

• Developing a common networking platform • Teaching the “why of standards” • Improve e- learning content and online training accessibility at lower costs • Developing a more robust curriculum for training • Develop Workshops and Conferences focused on 2nd and 3rd Tier suppliers to educate

good manufacturing practices based on code compliance for pressure vessels, piping, fillings, valves, etc.

• Boarder based energy conferences • Need to expand train the trainer • Improved knowledge management and course offerings • Focus on branding conferences in India- multiple cities at least once a year as workshops • Does ASME have an elaborate program on Reliability and Failure prediction? • Reliance foundation/social responsibility – how can ASME participate- outreach

programs? New areas of technology

• Safety related, transportation of chemicals and petro products, corrosion • Nuclear power for Reliance • Requirements into material certification • CA focused and “how to comply workshops” • Reliability and analytics • Renewable energy • Reliance certified mechanical engineers • Interest in flange joints and safety • Enabling technologies such as manufacturing hazardous transportation of materials,

quality of supply chain, failure prediction and reliability ( reliance uses Meridian – all modules ) , corrosion

Summary Reliance management’s comments were consistent with other industry leaders. Comment included the need for developing a common platform for engineers such a conferences, improved and continued localized training and development (both on line and in person). Also were particularly keen to support the 2nd & 3rd Tier Supply chain targeted – Good manufacturing practices, Code compliance and Conformity Assessment promotion workshop/ conference.

AppB-2h India Trip Notes – Tata – Rovins/Sharma General Tata main business include Tata Steel, Tata Motors, Tata Consultancy, Tata Power, Tata Chemicals, Tata advanced systems, Telecom, Food, Oils, Tea, Hotels, Housing, etc,

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• Working on developing technologies with High probability of impact on Social life and National interest ( i.e. 100 Million Lives and $100 Million in Revenue )

• Areas of Interest – Energy Security , Food Security , Consumer Electronics and Factory & Fleet Analytics

• Competencies drawn from within TATA companies • Aerospace and defenses integrate under one umbrella • Technology trends need to be product specific- Group Vs Globe approach adopted • IT/ POWER / AUTO/ TELECOM – Following strategy of being digital • All CTO in one technology forum to bind together • IoT and Digitization doctrine at group level • Strategy to productize with a tangible output • Mechanical engineering based simulation – Light weighting & Freshness! • Can help us connect with top level execs at Tata companies that fit our objectives • Energy needs in India to double in next 10 years - solar and wind to grow dramatically • Fail Early Approach – Deployment and Ideating concurrently • Conducts National Technology Symposium with CII • Conference on Sustainable fuels with TERI ( next due in 2016 )

Key opportunities • Solar, robotics, fuel cell • National technology symposium in December • Membership – Is there a model to share more than individual memberships? Would like it

to be shared at the annual CTO forum • Skill building – needs for both online and in person training. Includes on the job and

classroom training for students • Conference on sustainable fuel next year • Pool of ASME experts (SME) to connect with Tata • Technical groups to augment training • Opportunity for certification funded by government (small medium sized enterprise)

New areas of technology • Areas with high impact on social life • Energy security – fuel cell – energy harvesting • Graphene research – TATA, YALE , & Harvard collaboration • Technical area of Interest – Methanol & CO2 capture and conversion to Methanol • Factory and fleet analytics- improving productivity processes • Consumer electronics – health and safety of factory worker Co2 capture into methanol • Food security – drone based pesticide deployment – useable water • Metal Organic frameworks – Hydrogen Storage & cooling • Transportation • Healthcare

Summary Tata also stressed the needs of providing skill training in India. Additionally, Tata management offered us the opportunity to assist ASME in reaching appropriate management in their organization where by training or content are required.

AppB-2i India Trip Notes-Thursday and Friday – Rovins/Sharma 29th Oct Thursday and 30th Oct Friday 2015 Sessions Meeting Sessions with ASME leaders, government, industry, and academia.

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General • Need of common platform for professional and student engineers • Clear written Instructions on how to start a student chapter required • Suggest IMECE type of event in India • Plan to bring industry and academics together • Provide internships at ASME India • Multi-disciplinary engineering approach and solutions • Frequent Webinars 1x per month • Competitive courses are offered for free without a certificate and paid for with a

certificate • ASME to create a web site for information • Dr. Reddy – Chairman NASSCOM – “10 million people every year from graduate level

to employment seeking workforce”. 40% Jobs filled by existing companies. • Not enough planning for quality education • Curriculum must meet the enormity of technology disruption. • Great need for educating current employed people • AICTE – need pricing for smaller institutions - done • Student exchange programs, ASME as a connector • Weakest link is faculty platform for faculty engagement and development • IMTMA – (ATP for GD&T) workforce is not prepared for industry • Practical knowledge is lacking and need for practical oriented courses • More active student sections ASME standards need to be adopted to design and

new technologies’ • Training costs are too high • Increased marketing engagement with international speakers

Opportunities • Greater support needed from ASME SECD for SLDCs to increase growth of Student

Memberships & Sections in India • Student curriculums should also cover subjects on emerging technologies like Robotics,

computer science etc. • Current student offerings should include hands-on/Internship and Industry visit

opportunities for students to bridge the student-industry gap • New events like AM3D, ISHOW etc. will encourage greater participation from Academia

& Industry • Large scale events like organized by IMECHE, can be started in India to invite PAN India

participation from Academia & Industry • SLDC event (i.e. Pre-event for SPDC & HPVC) should be organized at various

regions/zones of India – to pave the way for National Scale event • Existing student curriculum should be more multi-disciplinary engineering focused • A web tool will greatly help in the communication of existing student & senior members

for planning future events & training to new members • ASME certificate courses for students on ASME code & standards (Certificate programs) • Greater emphasis needed on Continuing Education programs for practicing engineers to

promote application of new technologies in different areas • NSDC – Sector skill council on Engineering & IT has developed list of 75 prerequisite

workforce skills of the Industry. Qualification Packs are available. • ASME can help NSDC in providing knowledge expertise on certain areas of skillsets thru

Trainings, short courses, online courses • ASME can have a Memorandum of Understanding with AICTE for Codes & Standards

Awareness trainings

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• GIAN program (Global Initiative of Academic Networks) under Ministry of HRD - MHRD provides 8,000 USD for honorarium and travel of Experts for one week program. $12,000 USD for 2 week program. ASME can explore the possibilities of engaging its experts for delivering short courses under the GIAN program.

• ASME to consider special pricing of its journals for non-funded engineering institutions in India to encourage research at Academia level

• ASME Training programs for students and practicing engineers should have some amount of practical exposure in form of Hands-on session

• Practical trainings can be incentive based to encourage greater participation from young engineers.

• Young engineers need greater familiarization on ASME codes and standards – ASME to provide direct link of its “ABC course on Introduction to ASME Standards” to AICTE for broadcasting to all affiliated/non-affiliated engineering colleges (in progress at digital collection site)

• Training of Faculties on ASME code & Standards is essential, need more trainings from ASME

• Industry expects ASME to develop standards on Solar and other renewable sources of energy, as renewables is one of the emerging sectors in India

• ASME standards are still perceived as American standards, need to be more locally relevant

• Greater participation needed from Academia and Industry in ASME India section and advisory committee.

• More training/engagements offerings needed for Faculties • More Multidisciplinary conferences needed by Indian engineers for Eg: ASME-IEEE

Mechatronic conference • ASME offerings are expected to be more multidisciplinary by including other emerging

areas like Bio Medical, Mechatronics etc. • ASME India Gas Turbine group expects greater flexibility and autonomy for delivering

global level ASME conference in India • ASME to develop more practice oriented trainings for engineering students /Academia • ASME to focus on localization measures: building more local resources - local Instructor

and course curriculum development for local Industry need • ASME to develop standards for water pipeline industry, as the Industry does not/ have

minimal standard available – AWWA standard has very minimal usage. Also India is poised to invest 15 Billion USD on steel pipelines on water.

• Waste water treatment/Clean water is another emerging area where standards are required

• ASME to bring emerging technology to India through global collaborations. • ASME to provide more stronger platform for Academia-Industry to collaborate • ASME Student sections need more networking opportunities with Industry for bridging the

Interns demand-supply gap • ASME to develop standards/guidelines on “Probability Risk Assessment” (currently

available on Nuclear only) • Training needs on Design of Nuclear facility components is crucial • Need for Testing standards for Additive Manufacturing components • ASME to explore other economical and greater mediums of training outreach like

Training through Webinars • Trainings needs on Automation for Manufacturing Industry, Geometric Modelling CAE

etc.

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• ASME Section-I code should also address Supercritical technology (currently more sub-critical technology focused)

• ASME to conduct more Train The Trainer programs for Academia and Industry • CII needs training offerings from ASME on subject of Corrosion • Partnership opportunities with CII Industry specific clusters, areas of collaboration can be

identified like training etc. • ASME should provide more conferences/events for engineering companies to showcase

their strengths to Academia • Opportunity to develop online courses for students supplemented with classroom training

followed by joint examination by ASME-NSDC • Possible partnership opportunity with Tier-2&3 Academic Institution (through CII) in

making them more aware about the importance of R&D • Other emerging areas: Manufacturing of Solar Panels &Cells; Standards on Modernization

of Power plants, New generation of Materials like P92; Performance Test codes • CII has identified 150 Industry specific technical skill gaps, that can be shared with ASME

to build new curriculums / trainings programs on • Training in manufacturing software, codes and standards • Forum needed to share in advanced manufacturing • Explore training at the operating level - National Skills Development of India – joint

ventures • Renewable technology courses • Making codes more locally relevant • Develop conferences – sections – robust on line and onsite training for faculty and

students (frequency and accessibility and affordability) • Training needs CII – work with ASME as a partner, MOU, certification, set of training

programs, certification for undergraduate • Localized, customized training with local assessment

New areas of technology • Solar, Wind • Batteries – energy storage • Recycling of waste water and waste mitigation technologies • Solid waste, • Finite element analysis. • Sensors • Automation • Super critical coal • Alternative fuels, greener fuels

AppB-3a China Trip Notes – Keith Roe High Level Takeaways from BOG China Trip Perspective – China: Continuing the March Onward and Upward

10. Having observed the remarkable transformation of China and Chinese industry over visits going back 35 years, it is clear that China is on a determined path to be the lead industrial country in the world. Reasons for this may vary or be couched different ways, but the continuing march onward and upward is clear. This could not have been made more evident in the presentation by the China Academy of Engineering (CAE) on China Manufacturing 2025 (CM2015) and in the companion tour of the China

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engineering Science and Technology Exhibition. The import of the CM 2025 initiative is a combination of an opportunity and a threat or challenge. From a strategy perspective, there seemed a certain inevitability in the outcome of this march onward and upward, and that should influence our choices. It is perhaps a reflection of the Chinese cultural philosophy of persistence from the “long march”.

11. From a pure market perspective, China represents a major and vital opportunity for ASME, with a number of compelling attributes, but with some companion challenges, amongst others:

a. China has many compelling market attributes, among them: i. Largest population in the world with many unmet needs. ii. A large and dramatically growing infrastructure. iii. One of the leading global developers in key technology areas, and offers

one of the best ways to advance our products and services. 1. A primary example is Nuclear Power with their very significant

growth and new technology development activities. iv. A rapidly expanding workforce including millions of engineers and

technical workers that will need training, networking, conferences and other support, much of which could be in ASME’s wheelhouse.

v. An active effort by many organizations to expand their international outreach as they realize that they do not/cannot do it all themselves in the timeframes needed.

vi. A global player with a reach into many other parts of the world. b. On the challenges side, China represents a difficult market due to:

i. Language difference, though many speak or understand English ii. Very China centric with a strong, controlling government iii. Will be a competitor on standards (or potentially a partner in some

areas?) iv. Some of the other well-known issues re IP and rule of law which have been

improving over the recent years. 12. Three also seems to be a much more open environment than in the past. Anecdotal

insights may be meaningful here. In the Beijing of 1980, literally every one (really, everyone) wore a Mao jacket/suit – from the workers on the street to the high level officials. While the quality and tailoring varied significantly, nonetheless, the uniform was the uniform. It gave a very almost forbidding, oppressive and tightly controlled sense of the impact of the government on individual’s daily lives. Certainly this was a factor that ultimately lead to events years later like Tiananmen Square. Now in 2015, looking around at a very different Beijing, there is not a Mao jacket in sight – I looked for them! Coincidental? I think not; it is more symbolic of the change in culture that is occurring at a significant pace. When some of our hosts said China is opening up and interested in collaborating, it seems more than just rhetoric. In the intervening trips in the years since 1980, I have not heard such a consistent theme of collaboration.

13. So… a competitor or alliance partner? While the initial, more emotional reaction might be to feel threatened by the big gorilla in front of us, a more considered reaction is to recognize the fact that even big gorillas need help and they can take you on a hell of a ride! Such may well be the case with China and the opportunities it affords to ASME. Might think of the strategy in many areas of ASME’s interest should be “if you can’t beat ‘em, join ‘em”.

14. China has shown, as did India and Peru, that for ASME to adopt the overall strategic philosophy of “Think global, act local” is essential, as it is to most other global

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organizations. China is a very different opportunity compared to other parts of the world. As potentially ASME’s largest international market, it requires a carefully thought out strategy on how to best deploy ASME products and services into this market. If, as expected, we continue to identify China as a first tier or priority market, we should define a specific country strategy considering the unique opportunities and challenges of this market.

High Level Observations and/or Strategies

13. Expansion of ASME Activities on a Broad Base a. Have a great opportunity in an

evolving China as it increasingly, though slowly, opens more to the West. This opening allows a chance to more broadly build ASME’s infrastructure base in China as its platform for expansion. Embedding a base of embedded students nurtured on the ASME standards and networked with ASME global experts will help them turn more naturally to ASME for a broader range of ASME products and services.

b. We should never lose sight of the fact that China wants to and probably inevitably will become the world’s largest economy and the leading global manufacturer. This makes it an important opportunity, but belies some important competitive issues that ASME needs to address.

c. Probably should develop a strategic plan for China market to determine the potential benefits and return that can be achieved best and the best approach to get there.

14. Executive Level Engagement is China a. On the puzzling side, we did not see

much leadership from Chinese industry. Of course, much of the industry is really the linked to the Gov’t and involves joint venture companies of one type or another. Nonetheless, unlike India where we saw a number of corporate executives and leaders, though we saw high level people, we did not see the same here.

b. I raise the point in that the idea of an executive interchange within China by Chinese and foreign and JV companies could have some value on

China Manufacturing 2025

Sometimes called Made in China 2025

1. Subtitle: “An Action Program for a Strong Manufacturing Industry”

2. CM 2025 Elements (promised PDF copy of the presentation which will have details)

a. 5 guiding principles: i. Innovation Driven ii. Quality Assurance iii. Sustainable Development iv. Structure Optimization v. Talent Fundamental

b. Three Step Strategic Target i. First: 2025 – Enter the list of

strong global manufacturing countries

ii. Second: 2035 – Become one of the strong global manufacturing countries

iii. Third: 2045 – Become the leading global manufacturing country with strong innovation

c. Main Missions – there are 9 (?) i. Strengthen national innovation ii. Deepen integration of industry

with Information Technology iii. Enhance mfg. fundamentals

including critical components, materials and advanced processing

iv. Improving quality with well-known brands

v. Developing clean and sustainable mfg. technologies

vi. Developing and breaking through in major and priority areas. Mentioned many examples including medical, energy, etc.

vii. Enhancing international cooperation in the global economic era.

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issues on doing business in China and pursuing technology and development issues.

15. Advanced manufacturing a. Noted many parallels between CM 2025 and NNMI and ASME initiatives. Seems

like area for significant collaboration. i. Technology focus and leadership in same areas ii. Mission of improving quality of life in society (albeit initially in China) iii. Work with our gov’t to help improve adoption in our society and around

the world. iv. Seems many areas for mutual collaboration as both advance our

strategies and objectives b. Advanced manufacturing is clearly a priority here as it is in the US, India and other

parts of the world. China WILL progress in this area. ASME needs to decide what its strategy is in China as regards Advanced Manufacturing and build that position. This should be done pretty soon obviously given the CM 2025 initiative. With our link to CMES and their role in AM standards, the time and opportunity may be there.

16. Codes and Standards a. On a broader level, we were advised that Standards development is changing in

China. a. Previously all standards emanated from the Government

organizations. b. Recently have changed with apparent recognition, Gov’t can’t or

shouldn’t do it all. c. Have established overall Standards coordinating group called

Standards Management Association (SMA) NOT SURE OF NAME HERE d. Have decided that in some areas, standards setting will be separate

b. CMES has a key focus area on developing C&S for additive mfg. i. They see a great opportunity to work together with CMES in this area

given ASME expertise in developing standards that are globally recognized.

c. Emphasized at each meeting the fact that the ASME code committees are multi-national and multi-discipline, and welcome China participation.

ii. Noted that we were also open to developing new standards. d. Seems ASME has made very good inroads in China re S&C over the last 10 to 20

years. While it could be overly optimistic, China’s increased openness and our potential to expand our footprint in China in non-C&S areas could provide an increased opportunity to expand our S&C engagement in other areas.

i. Note we were told they also have close cooperation with Germany in some of these areas.

17. Technologies of Interest as Mentioned by different groups. • • CMES • CMIF • CNS • BJUT 1. Intelligent

manufacturing processes

• X • • • X

2. Additive manufacturing • X • • •

3. Robotics • X • X • • X

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4. Modeling simulation codes • X • • •

5. Sensors • • • • 6. Digital Design • • X • • X 7. Next generation IT • • X • • X 8. Internet of things • • X • • 9. New materials • • X • • 10. Lightweight materials • • X • • 11. Nuclear, wind and

solar power • • X • •

12. Energy storage • • X • • 13. Clean coal

technologies • • X • X •

14. Advanced nuclear power technologies • • • X •

15. Welding • • • • X 16. Agriculture • • X • • 17. Ocean Engineering

technology • • X • •

18. Railway transportation • • X • •

19. Automotive • • • • X 20. Aerospace • • X • • X 21. Shipping • • X • • • • • • • • • • • •

18. Conferences

a. Conferences represent a logical step forward to increase the ASME brand visibility in China. While we have some footprint, it is limited.

1. ICONE is extremely well thought of in China, and per John Zhang should be more heavily promoted.

b. There are opportunities with both CMES, CAE, and CNS to collaborate on joint conferences

i. CMES/CAE already have an annual conference on Intelligent Manufacturing that is already internationally sponsored that ASME could join.

ii. CMES has Innovation Mfg. Forum every May. Suggestion made that ASME work with them on this. (ACTION?)

iii. CMES has a conference on New Materials that ASME could attend. c. While examples, these are areas where ASME could raise brand visibility if part of

a broader conference and country strategy. 19. Academia

a. Engagement with Academia was primarily at the Beijing University of Technology (BJUT).

20. Student Sections a. As evident in the notes at the end, ASME currently has a serious opportunity to

develop a student section at Beijing University of Technology. If developed

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successfully, it could become a model and springboard for other student sections in Beijing and around China.

b. As we say in the US, students and ECE are the future of the Society. That is probably no less true in pursuing our objectives and other countries such as China: in-country students and ECE are our future In these other countries. Part of the “Think Global, Act Local” concept.

21. Professional Sections and Networking a. Llittle discussion on this, but sense is this could be another area of opportunity.

More Detailed Items From Meetings (some items are already incorporated above) Meeting with China Mechanical Engineering Society (CMES) and China Academy of Engineering (CAE) 1. Perspective Comments

a. Said “Meeting was timely” – believe context was in sense starting to undertake CM 2025

b. Like most of the organizations we spoke to, there seems a big push for increased international outreach.

2. Standards development is changing in China. a. Previously all standards emanated from the Government organizations. b. CMES has been assigned the role of developing standards for advanced

manufacturing. 3. CMES has developed a roadmap for Chinese Mechanical Engineering for the next 10 years.

a. First version developed in 2011 b. New version to come out in 2016 – (sounds like 5-year planning update approach)

4. CMES was founder 10 years ago of Innovation Design _________? 5. Have Innovation Mfg. Forum every May. Suggestion made that ASME work with them on

this. (ACTION?) 6. China Manufacturing 2025 (sometimes called Made in China 2025)

a. See box summarizing China Manufacturing 2025. b. Background on its launching

i. Manufacturing a pillar of the economy, and very significant. 1. In 2011 World Bank said China produced 20.3% of global mfg. 2. Have made tremendous achievements in last 30 years, ranging from

jet fighters to heavy forgings and much in between. ii. But they repeat that their “mfg. industry is big, but not strong.”

1. Weakness in innovation ability: R&D/Sales is ~1% in China, vs. world average 3-5%.

2. Lack of core and basic manufacturing technology; import from abroad.

3. Serious pollution and waste. GDP is 7.5% of the world, but energy is ~20%.

iii. Challenges: facing new science and technologies, and a new industry revolution.

iv. CM 2025 is a Gov’t focused initiative to support strong future economy and be the leading mfg. nation in the world.

v. Plan for CM 2025 proposed by CMA in 2013. Program officially announced in 2015.

1. This could be an opportunity for ASME. c. Discussion –

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i. Formidable challenge and impressive; appears well thought out. ii. Note focus beyond just key economic and growth issues but other important

societal challenges like sustainability. iii. Also note apparent emphasis on international collaboration objective and

mission to help solve global challenges iv. Has strong parallels with ASME mission and focus

1. Technology focus and leadership in same areas 2. Mission of improving quality of life in society (albeit initially in China) 3. Work with our gov’t to help improve adoption in our society and

around the world. 4. Seems many areas for mutual collaboration as both advance our

strategies and objectives 7. Tour of the China Engineering Science and Technology Exhibition at the CAE.

a. Shows a significant range of technology and engineering achievements over the last 30 or 40 years. (note this is when the cultural revolution ended)

b. Combined with the CM 2025 discussion, created a certain sense of inevitability over the next 30 years of the CM 2025 plan that China will become the leading world manufacturer and a world power on the par with the US (and supplanting Russia)

8. Re discussion on Advanced Mfg., ASME responded with some background as follows: a. Brief review of the NNMI programs in the US initiated by the Gov’t and bringing

industry, gov’t and academia together. i. Noted NNMI similarity to CM 2025 ii. Also noted ASME key role in helping develop the initiative over many years

b. Specific questions raised re DMDII and SMART initiatives, also re sponsoring agencies. Advised CMES that some institutes under NNMI are sponsored by DOC, DOD, and others.

i. Advised sponsorship could limit sharing ability in some areas. c. Also reviewed the details of the ASME activities in Advanced Mfg. as listed in the trip

book. Tried to make the point that we were a significant player and involved.

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9. Codes and Standards a. CMES has a key focus area on

developing C&S for additive mfg. b. They see a great opportunity to work

together with CMES in this area given ASME expertise in developing standards that are globally recognized.

10. Conferences Discussion a. CMES/CMA already have an annual

conference on Intelligent Manufacturing.

i. Is already internationally sponsored.

ii. Lead by Prof Baicheng Liu and hosted by CMES

iii. Would like ASME to consider joining in the co-sponsoring

iv. Ties in with another conference event that they would like to integrate (not sure what this was)

b. CMES has Innovation Mfg. Forum every May. Suggestion made that ASME work with them on this. (ACTION?)

c. CMES has a conference on New Materials

i. Conference in 2016 will be near Shanghai

ii. Would like ASME to attend (did not ask for co-sponsor)

iii. Theme will be on materials for additive mfg.

Meeting with China Machinery Industry Federation (CMIF) 1. Perspective Comments

a. “Meeting was timely” – believe context was in sense starting to undertake CM 2025

b. Like most of the organizations we spoke to, there is a big push for increased international outreach

c. Re China Manufacturing 2025, said many of the general background points as did CAN.

Background on CMIF

1. Established in 2001 arising out of the Ministry of Industry; still under Gov’t direction.

2. Have 312 members from large enterprises to small a. Covers important / specialized sectors

such as automobiles, electrical, etc. b. Roles:

i. Responsible for strategy and analysis of sectors – helps develop sector 5 year plans.

ii. Responsible for standards development for industry.

iii. Is organizing project to help develop understanding and acceptance by public for new technologies like in foods (?)

iv. help evaluate quality in industry v. Support international cooperation

and communications vi. Co-organize international

conferences and seminars 1. Also conferences on standards.

vii. Support information exchange between manufacturers.

c. CMIF is an umbrella organization i. Professional societies and other

associations are members of CMIF d. Different than ASME, but says has long

history with ASME going back many years where exchanged delegations

Background on Machinery Industry in China

1. Very broad based range of sectors 2. Have 82,000 companies between all the

sectors a. Believe most are indirect members

through various industry associations. 3. Chinese total manufacturing industry

statistics: a. Asset value: RMB 18.4 trillion (~$3 .5

trillion) i. ~20% of all industry

b. Sales value: RMB 22.2 trillion (~$4 trillion) c. Profits value: RMB 1.56 trillion (~$300

billion) d. Import /Export value: RMB 747 billion

(~$120 billion) e. 9.3% of GDP is machinery

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i. Added that it was inspired by the US manufacturing initiative. 2. CMIF wants to increase international cooperation. WHY?

a. To learn information on other techniques, technologies, b. To help our members on international relationships and foreign trade. c. Expand cooperation of engineers and engineer exchanges d. Interested in organizing international seminars.

3. CMIF said that innovation is one of the issues they are trying to deal with. 4. Codes and Standards

a. Standards development is changing in China. i. Previously all standards emanated from the Government organizations.

b. Now CMIF is responsible for developing standards for industry (while not a ministry, is Gov’t controlled, so not a total change in how done)

i. Within China, 80% of standards used are Chinese standards 1. Others are from ISO and others

ii. For international projects, they will define which standards to use. iii. Gov’t encouraging adoption of international standards like ASME for

Advance Mfg. iv. Chinese Standards will often build on international standards.

c. CMIF has a Standards Department run by Mr. Tan Xianguing i. Is authorized for machinery and industrial standards

1. Have 7,356 National Standards 2. Have 8,608 Industry standards

ii. Developed by committees 1. Have 133 technical Ctes for Machinery Industry Standards 2. 12 Ctes for Industry Standards 3. Are multi-discipline committees, not just ME based?

d. Asked re: how many Authorized Inspection Agencies (AIA) ASME has in China i. Responded many come and support us here, but only 1 actual agency now. ii. ASME noted that ASME standards are international and open to experts from

around the world. Encouraged participation. iii. Also open to developing new standards

5. Question raised about where Sustainability fits in to CMIF activities. ANS: a. Industry has grown at high rates, sometimes even up to 40% (?)

i. Creates over expansion problems and inefficiencies. Also creates waste of resources, a problem when import 57% (?) of oil used.

ii. So now shifting to emphasis on performance and efficiency, not just growth.

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b. Clean coal technology also important i. 70% of power comes from coal ii. Focusing now on technologies that are higher efficiency and cleaner burning.

6. Follow-up: a. Re standards, Mr. Tan Xiangiang will work directly with Mark Sheehan. b. Agree we should continue our discussions. They suggested sector specific

delegations as a possibility. Meeting with China Nuclear Society (CNS) 1. Perspective Comments

a. China will become the largest nuclear power generator in the world on its current track

i. Currently has 27 units operating ii. 25 additional units in construction

b. Have built corresponding capability: i. Have 3 manufacturers who can forge these large components like Reactor Vessels and steam generators; all have ASME N Stamp.

ii. Have capability for 10 – 12 systems/yr. iii. Only other company with ability to forge large

reactor vessels is Japan Steel. c. NOTE: Have said built capability to manufacture key components to insure quality! (This is a reversal from 30 years ago when quality was poor) 2. CNS Critical Technologies a. Broad level – diversification of energy systems needed including advance nuclear and clean coal.

i. Note nuclear to go from 3% today to 20% in future. (timing unclear)

ii. By 203, expect 150 GW with about 5% nuclear. b. Investing significantly in advanced nuclear technologies across broad range

i. PWRs currently and will be primary nuclear technology through 2050.

ii. Currently have Candu reactors also iii. Develop large Chinese PWR iv. ADS – Accelerator Driven System for transmutation

(spent RMB 1.8 billion) v. Small Modular Reactors (SMRs) vi. Travelling Wave Reactor – with Terra Power and Bill

Gates Foundation. vii. Sodium Cooled Fast Breeder Reactors

1. Have demonstration size plant already 2. Starting to build 600 MWe LMFBR 3. Will lead to closed fuel cycle

viii. High Temperature Gas Reactor 1. Have a demonstration HTR 2. Investing RMB 6 billion

ix. Also pursuing Molten Salt reactor technology x. Hybrid Fission/Fusion Reactor

Chinese Nuclear Society

1. Established in 1980 2. Three objectives

a. Scientific and technical exchange

b. Public communications c. International cooperation

3. Statistics a. 24 technical divisions b. 22 Provincial branches c. 135 organizational members d. 9500 individual members

(note other individual members belong to the Provincial organizations)

4. BOD has 165 members 5. Have National General

Conference –every 4 years with 330 delegates

6. Organized around 7 Committees in areas such as organization, academic, public communications, editorial, financial, women in nuclear, YGN.

7. International Cooperation a. Academic conferences,

seminars, workshops b. Visit to/from overseas

partners c. Organize international

nuclear exhibitions

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3. Codes and Standards a. Use a mix of C&S, including ASME for many of them. b. When try to export, finding challenges on using Chinese codes c. China is developing own nuclear standards under the National Standards

Administration (not sure name is correct) i. 1,000 experts involved ii. Want to learn from ASME how to do this. iii. Stated rationale: big country, need for security. (Seems a specious argument)

d. For international work, would like to use ASME standards since more widely acceptable

e. ASME response: i. By sharing process (vs. ISO) would help make more compatible; also if on

ASME Committees, then helps with better alignment and acceptance. ii. Common internationally accepted standards important for export and quality

acceptance. Not a national security issue, those can be handled by regulations which are different than standards

iii. ASME standards are not US standards, they are international standards developed with international participation.

f. Suggestions by Mr. Shen (Possible ACTION) i. Potentially should have joint meeting between Chinese engineers and ASME

representatives. Will with John Zhang @ BRO to develop timing. ii. ASME could speak @ IGYN 2016 Conference iii. ASME could speak @ PBNC 2016

g. Suggestion by John Goossen (Possible ACTION) i. Should consider C&S collaboration with CNS on Gen IV reactors. ii. John Zhang expanded to suggest also other advanced reactors. Example

high temperature materials for HTRs. iii. Emphasized that ASME standards are international and should be

communicated as such to others. 4. Conferences

a. Conferences are a big part of what they do. b. ICONE 21 was in Chengdu in 2013 – very popular in China

i. 32 countries, 1,001 papers ii. 1300 participants, 450 overseas

c. CNS 2015 Academic Conference – annual, Chinese only. d. Each year, CNS holds 50 technical seminars in China e. Future Events

i. Pacific Basin Nuclear Conference - 2016 (PBNC 2016) 1. Aril 5-9, 2016 in Beijing 2. Will be simultaneous with Nuclear Industry Conference.

ii. International Youth Nuclear Conference 2016 (IYNC 2016) 1. Will be held in Hangzhou July 24-30, 2016 2. Organized by many YGN groups, including China, US, etc.

iii. ICONE 2017 – probably in Shanghai (2016 in Charlotte NC) iv. CNS Biennial Academic Conference – sept 2016

5. Universities involved in Nuclear Power a. Graduate 15,000 nuclear engineers each year

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b. Four leading universities in nuclear: (names should be checked) i. Tsinghua University ii. Xian Polytechnic iii. Shanghai University iv. Harbin University of Engineering

c. Planning to grow the number of universities supporting nuclear power. 6. Seem to have significant Public Outreach program including:

a. Have Nuclear Science and Technology Exhibition for the public. b. Nuclear Open Week – for children

7. ASME Comments a. Gave Public Trust presentation – good response to their public outreach efforts.

Meeting with Beijing University of Technology (BJUT) 1. Perspective Comments

a. BJUT is a relatively young university established only 55 years ago. Interestingly, just before the start of the cultural revolution when Western technology was shunned.

b. 2. BJUT agreed that the potential for a long

term relationship with ASME is desirable. a. Would hope ASME could help it

better connect with industry to Improve research, help exchange students, etc.

b. Hope some members of BBJUT can become members of ASME

3. Meeting with College of Mechatronics a. Departments include

Mechanical Mfg. and Automation, Mechatronics, Mechanical Design and Theory, Engineering Mechanics, Instruments Science & Technology, a one or two others.

b. Degrees range from UG to PhD c. Have “significant international

exchange” including exchange student, lectures, visiting scholars and other venues.

i. Trying to promote more interaction with international organizations.

4. Laboratory tour of College of Mechatronics

Beijing University of Technology (BJUT)

1. Established in ~ 1960. 2. Mission (approx.) – promote technology and

education to promote the economy of Beijing (curiously narrow)

3. 1585 full time faculty comprised of 321 Professors, 630 Assoc. Prof, 7 distinguished Academicians, 9 Yangtze River Scholars, etc.

4. Programs have engineering as the core, but also Science, Economics, Management, Philosophy, Art, Mathematics, and a few others.

5. Key Disciplines: IT, Advance Mfg., City Construction, New Materials, Social Sciences, Design and Art, and a few others.

6. Enrollment and Programs: a. 53 Undergrad programs b. 44 Masters programs c. 19 Doctoral programs d. 13,000 UG students e. 11,000 PG students f. 1,000 PhD students g. 1,000 international students

7. R&D Activities a. RMB 800 million – 30th in Chinese Universities b. Over 350 patents per year c. 25 recognition awards last 5 yrs.

8. International exchange a. Cooperation with ~200 universities. b. 500 people/yr. overseas for conferences. c. 10% students abroad for PG degree d. 10 international conf./yr. @ BJUT

9. Engineering accreditation: a. Started in 2005 b. BJUT ME accreditation in 2009 c. CAST Accord in 2011

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a. Toured the advanced manufacturing and other mechatronics labs. b. Observation was that they were not heavily in use. c. Equipment seemed good, some basic, some advanced d. Though “just cleaned this morning”, level of cleanliness and orderliness was mixed.

5. Q&A with Students from College of Mechatronics a. Meeting included about 25 students and their professors. Very attentive and seemed

pleased we were there. b. We talked about the benefits of joining ASME. Went into discussion of the cost of

membership. Got an unexpected offer from the Prof Liu, Assistant Dean of the College of Mechatronics, to pay the cost of membership and potentially some travel expenses for the student members. This raises an outstanding opportunity to start an important student section in Beijing that could be a model of Chinese Student Sections.

c. Questions raised re role ASME plays in technologies? Explained strategy and NNMI program.

d. What is the future of Mechanical Engineering? Each BOG ember shared their views. Overall perspective was ME would be exiting and diverse.

AppB-3b China Trip Notes – Jack Tuohy • We were able to get a sense of a genuine desire to collaborate with us. • Reference was made to the political stress (I assume related to such things as the man

made islands and the like). Our guests noted that that is not how they are. They wish to have a good and cooperative relationship.

• These observations could only have been through personal face to face interactions. • There was also a reference with respect to standards that they needed to acknowledge

the need to accommodate “nationalism”. I noted that national considerations can be handled by such agencies as their equivalent to the US NRC. Those Regulations reflect national values and considerations. ASME standards are international and represent a consensus of professionals from countries throughout the world. They should not be nationalistic since they reflect technical values and basic social values.

• Many Chinese students study in the US and return to China. We should do our best to develop a connection with them and maintain it even after they return to their home country.

• There is a growing concern that the introduction of Chinese nuclear technology into world markets will draw down the level of safety and western values. This was evident in the 80s when the Chernobyl accident occurred and the difference between US and Russian design criteria was notably demonstrated. I don’t think there is the same degree of divergence with China but there is some. China is leveraging its ability to finance these large projects with great success.

12/01/2015 - Meeting with CMES

Welcome by Zhou Ji, President CMES (1980 student member of ASME at SUNY Buffalo) Action: Develop strategy to keep up contact with all the Chinese nationals that get degrees in the US and then return to their homeland.

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New Policy in China- CMES taking the lead instead of government for some standards

• e.g. 3D Printing o First get Agreement on CMES standard o Then it becomes a government standard

SA Tech Forum on Alternate Manufacturing • Seeking support to combine with ?? • Result will be a “BIG EVENT”

Julio introduced ASME • 140K engineers • 150 Countries • Age 55 • BOG strategic decision to Peru, India and China • 43% of trade on Pacific rim • Finding ways to stay relevant in 21st century • Intention to interact with peers • ASME is good at Worldwide network and technical content • In process of a new strategy based on technology, Geography, Industry, Members,

Protfolio offerings • Looking for more ways to engage students

Zhou Ji Liu intro China manufacturing 2025 Chinese manufacturing is currently “Big but not Strong” Julio asked

Most relevant technologies Key areas for codes and standards Asked areas for Increased engagement

Liu discussed Intelligent Manufacturing Processes

Advanced sensors Additive Manufacturing Robotics Model simulation codes

ACTION Send KANG pdf of presentation

Zhang Intelligent Manufacturing = FOCUS May conference – Coordinate with ASME Inter conference on Intelligent Manufacturing Proposal to make two events A lot from Gen year CAE MIIT CAS (2016)

NNMI network Possibility of connecting two conferences looks promising ZHANG

Previously CMES did not have approval to collaborate Now CMES does Just back from international conference

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Invites us back to Shanghai 11th international Conference on New Materials

o Materials for Advanced manufacturing Julio stated that he needs to get Laura Hitchcock introduced into this conversation. 12/01/2015 14:30 CMIF Meeting Welcome by Wang Ruixiang

Noted very bad weather Noted that our “friendship will surpass the bad weather” Noted that CMIF and ASME have a long relationship 2010 led a delegation to ASME NYC Welcome to Federation

Julio: Establish long term relationship with CMIF to achieve mutual objectives Why visit CMIF Establish long term relationship with CMIF To achieve mutual objectives Why the visit?

To make ASME more relevant Need to be international Peru/India/China Implementing strategy Global challenges

Wang

CMIF – Comprehensive Established 2001 Mutual recognition of standard NOU with 20 countries including Russia, US… CMIF services Equipment Manufacturers ASME services engineers Machinery industry includes 82000 companies in the machinery industry Only 312 members Asset value of 18.14 trillion RMD Generating profit of 1.56 trillion RMD annually 41 Sectors Machinery industry is 9.3% of GDP Help members to have technical exchanges Help members to find international partners to introduce advanced equipment Enhance cooperation in general AIA Authority Inspection Agency

Julio:

ASME has 500 codes and standard Create new codes and standards with the Chinese members.

Tan Standards are Part of CMIF Number of national standards = 7356 Number of Industrial standards = 8608

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133 technical committees under CMIF at national level in the machinery industry. SAC 1000 TC Chinese government encouraging the use of foreign standards such as ASME standards

Julio: What are the most important technologies in China? Wang:

“China is a large manufacturing country but not a strong one.” Made in China 2025 part of reindustrialization 10 Priority fields

o New IT o How to integrate internet and Manufacturing o Robots o Aeronautical Engineering o Ocean Engineering o High Temperature Materials o Railways o Automobiles o Electrical Equipment

Nuclear Solar Wind

o Agricultural machinery o New materials

China operates on the low to medium end of the value chain Lacks innovation in its products Chinese government to transform development mode America is the leader America still #1 economy No doubt about peaceful development of China

Tuohy: Meeting is important Relationships are important Demonstrated by sending many representatives from ASME BOG This recognizes that the world is smaller

o Travel o Social media o Etc

Duty to have consistent standards to o Affects trade o Affects costs

the world is different than when we began December 2, 2015 - Meeting with CNS Li Guanxing President Lixen Shen spoke due to good ability to speak English Began with intro to CNS

• This is the year to open the door to international cooperation • Public Communication seen as important • NIC (Nuclear Industry China) held on even years

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• PBNC 2016 16500 m2 of exhibition space This will be the largest ever.

Also mentioned IYNC 2016 scheduled for July 24-30, 2015 Critical technology:

• Nuclear power currently 2% with plans to increase to 20% by 2050 • Currently rely on LWR technology • They are engaged in Gen IV effort with active R&D in the six advanced reactors

identified by GEN IV • China is looking at

o ADS (Accelerator Driven Systems) o Fusion o Traveling wave reactors o Fission / fusion hybrids o SMRs o High temperature Reactors – the HTR will be complete a demo in 2017 o Liquid metal

Sodium cooled Pb cooled

o Molten salt reactors China is working on its 13th 5 year plan for next year 600 Mw Na cooled fast reactor Excavation begins using MOX fuel Closed fuel cycle is planned Tsinghua University is viewed as the best in China YGN (Young Gen in Nuclear) exists in China

Discussed forging capacity in china o 4 facilities with large 600T capacity o Can compete with JSW

December 2, 2015 - Meeting with Beijing University of Technology (BUT) Wu Bin – Academic Affairs opened the meeting Wu Wenying introduced herself as being head of international relations China has a goal to have significant advances in Chinese manufacturing capability by 2025 and to be the best and strongest by 2045 Students asked questions of the Board Members for 20 minutes. The students were very engaged. Their English was passable or better.

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AppB-3c China Trips Notes – John Goossen The board delegation meetings in China overall were good. From the point of view of relationship building and direct personal knowledge of the needs and opportunities in the region I think the meetings were excellent. I want to congratulate John and his team for arranging the meetings and having such an impressive group of individuals attending the meetings representing the various organizations. John also provided us an excellent itinerary and keeping our group on schedule. Mark Sheenan was excellent in representing the ASME and supporting the meetings with his knowledge of the Chinese organizations, industry and government, meeting topics and ASME activities. Julio did an excellent job leading the meetings and promoting the ASME.

The following are my observations, feedback, and recommendations for future meetings and recommended actions. None of this is meant to criticize the preparation for these meetings or any individual. Although the meetings were good I think there are areas for improvement and how we could gain greater value. Being engineers we tend to problem solve and dive into the details very quickly, sometimes missing the overall picture and the opportunity to discuss higher level items, such as strategy. I think if some of the following recommendations are considered it will help keep the discussion in future meetings at a higher level which is more appropriate for level of participates at these meetings.

First, we should have more presentation material for these international engagements. Although Julio did a good job verbally covering the ASME organization and topic areas it’s easier for those not having English as their first language to see the words as well as hear them. So we should have a short presentation describing the ASME and the enterprise strategy. Also we should anticipate the type of questions we are going to receive and either try to cover it in the opening presentation or have material ready, such as, why would I want to join ASME?, and how much does it cost to be a member?.

I think we missed an opportunity to have a more substantial discussion on advanced manufacturing. It was an agenda item and we didn't have a presentation. CAE provided a very good overview of what the government wants to accomplish, the key items of the plan and a general timeframe. I think we could of had a general presentation on what the U.S. Government is doing and how the ASME is supporting and leading efforts. We had most of the information in our booklet but we only highlighted individual items the ASME was doing. When asked about what the U.S. Is doing in one of the meetings we had to verbally pull together points from a previous presentation of Tom’s and from the booklet. This goes to anticipating questions. I think if we had this material we could have discussed more potential opportunities with CAE where we identified overlaps in the objectives and plans.

Suggested action

Pull together the U.S. Advanced manufacturing plan with the items the ASME is leading and supporting and bounce it up against the China plan CAE provided us. We need to understand how it fits with our strategy and how we want to participate with the Chinese. They have an aggressive plan to be the world leader in 30 years so we need to develop how our strategy keeps us engaged with the China, how we need to engage the U.S. Government and industry

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to maintain our lead in this technology area and how we leverage this opportunity into conferences, C&S’s, product portfolio and how we can best support our constituents.

We need to provide Laura Hitchcock a copy of the Chinese presentation.

Jack provided an excellent presentation on trust/safety and did a fantastic job presenting it. He comes across as knowledgeable, sincere and passionate on the subject. I think keys portions of his presentation should be included in the overview presentation of ASME. However I do believe we tried to use this presentation as a substitute for the lack of material for other topic areas i.e. overview of ASME and an advanced manufacturing presentation.

I think one of the best moments was our interaction with students at BJUT. It may have been good to have had handouts for them on the ASME and maybe some small trinkets for the students.

In our meeting with CAE I think we should have had more background information on the China nuclear program. This information is available and I believe we did what we said we wouldn't do ie ask questions we should have known the answers to. Again I'm not criticizing anyone, I knew the agenda and should have helped prepare this background info from my previous knowledge.

Suggested action

China needs the ASME to go international with their nuclear products. We need to be careful in a number of aspects. First, we need to be careful on how this may impact U.S. industry, so we need to discuss collaboration between the U.S. and China and not just ASME and CNNC. Next if we don't collaborate with the Chinese they will eventually enter the world market without ASME and the China C&S's will become the standard for new nuclear build and technology. Finally, an emerging technology opportunity is the development of C&S's for the GENIV reactors, which China is the world leader in research and development. As I mentioned to Keith we should consider how we could participate with the international forum on GENIV development. Although China is doing research on almost all new reactor designs, in the end economics will decide what continues and what doesn't. Right now and in the foreseeable future the only economic designs are large LWRs. When you dig into the details of the other designs you'll either find there's not enough details to make the claims that are being made or the design is being promoted to get more research money or for other reasons. The only design outside of the large LWRs, is the SMR, which could change the market landscape and even then billions of $ will need to be spent on infrastructure (advanced manufacturing, modularization) before it will become a reality. Only the Chinese can pull this off right now, the U.S .could if we were committed.

They stated the completion of the construction of their HTGR in 2017. I question the date since they were just breaking ground a few years ago, but the Chinese are the only ones with a working prototype of an HTGR. It should be noted that this is not a very High temperature gas reactor. That requires new materials that can handle temperatures at and above 950 deg F. The very high temperature gas reactor is classified as a GENIV reactor, so it's still in the research mode. The only economic use for a HTGR is to produce H2. So I don’t see it going to market in the near future.

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These are the key points I’ve captured outside of the points and actions John and Mark have provided.

We now need to take all of the information gathered from the 3 international trips and feed it into the ongoing strategy work to ensure all opportunities; gaps and next steps are identified and appropriately acted on.

AppB-3d China Trip Notes – Mark Sheehan CMES 12/1/15 Talking points –

• President Zhou welcomed the delegation. He looked forward to a deeper understanding and cooperation between ASME and CMES and CAE.

• CMES was founded in 1936. They consist of 35 technical institutes and 108,000 members. • CMES has MOU’s with 42 organizations from 25 countries. • Introduced the National Innovation Strategy “Made in China 2015”. • CMES focused on ME education • CMSE has been designated as one of the new “learned society” standards developers

and they are focusing on standards for additive manufacturing and 3D printing. • They are developing technology road maps for Chinese ME’s. • CMES is focusing on international activities and are looking for a partner for their

Manufacturing Forum in May 2016. They also want to further cooperation on SATEC. • Mr. Liu gave a presentation on the China Manufacturing 2025 (Alternate to ‘Made in

China’). His major point was that Chinese manufacturing is “big but not strong”. • Jack made his presentation on responsibility. • Julio asked his ‘three questions’ afor CMES input on the three areas of interest to ASME:

o What are the most important technologies to CMES? o What are the opportunities for standards development? o What can we do together to increase engagement of Chinese engineers?

• Mr. Liu Baicheng answered that in the area of intelligent manufacturing, they have interest in:

o Advanced sensors o Additive manufacturing o Robotics o Modern simulation - he also noted that they have a strategy document for these

areas • Mr. Zhang Yanmin reiterated CMES’ opportunity to develop standards in the areas of

additive manufacturing, logistics and 3D printing Actionable Items:

• Standardization – new standards programs in ASME should be able to tap into Chinese experts to develop standards that are globally relevant in the areas of additive manufacturing, 3D printing and manufacturing logistics.

• CMES Technology Roadmaps should be shared and analyzed to see if there is a fit with ASME’s technology plans

• CMES will be hosting a “New Materials Conference” which gives ASME an opportunity to partner and show a strong presence in the topic area.

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• CMES is looking for the opportunity to exchange experts for training in the areas of standards development and technology development.

CMIF – 12/1/15 Talking points:

• Mr. Wang made itroductions and recognized that ASME is focused on its strategy for the next 10 – 20 years, and therefore the importance of the delegation.

• CMIF was founded in 2001 and now has 312 corporate members. • CMIF is responsible for industry standards in the machinery industry. • CMIF has 82,000 sub-members who account for 20 trillion Rmb in sales and 1.5 trillion in

profit. • CMIF is a major organizer of seminars. • The Chinese government now encourages use of Advanced Foreign Standards like

ASME’s. • Julio introduced his ‘three questions’ with the following replies:

o CMIF focus on technologies is still evolving, but core technologies are modeling and robotics

o They are also focused on the ‘Made in China 2025’ initiative, including new materials, exports, alternative vehicles and agri-machinery

• Sustainability – managing over-growth, over-use of resources and energy, managing the environment and pollution, and promoting reliability and safety.

• Energy storage and clean coal are also big. Actionable Items:

• Opportunities for organizing co-sponsored seminars and workshops • Cooperation by CMIF for identifying potential candidates for membership on IWG’s for

ASME committees in the areas of energy efficiency, etc. • Opportunities for cooperation in the areas of clean coal (high temp materials and ultra-

supercritical boilers) and energy storage. CNS – 12/2/15 Talking points:

• President Li welcomed the delegation and introductions were made on both sides. • Dep. Sec’y Gen. Shen gave an overview of CNS, which was founded in 1980. • They are focused on three main areas:

o Science and technology exchange o Public communication o International cooperation

• He announced the plans to hold an International Youth Nuclear Congress in July, 2016. • He described two of China’s critical energy policies:

o Nuclear now represents only 2% of China’s capacity – they aim to make it 20% by 2050.

o Energy Technology Revolution: Diversity – clean energy through clean coal, renewables and nuclear. Today, the focus is on nuclear.

• CNS is leading the way on developing Gen IV systems, including accelerator driven systems.

• They are also working on developing a closed fuel cycle. • There are 50 universities giving 70 nuclear engineering courses. • There are 15,000 nuclear engineers graduating every year. • They require ASME stamping for equipment built for the Westinghouse AP 1000 and

Chinese CAP 1400 designs.

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• For plants being built outside of China, they use whatever standards the customer requires.

• There was a discussion on international standards and how it will be a long time, if ever, before Chinese nuclear standards are recognized internationally. ASME’s standards are the most widely recognized and used.

Actionable Items: • Potential partnering on the International Youth Nuclear Congress in July, 2016. • Focus on cooperation on new technologies (Gen IV and fusion). NEA has responsibility

for existing technologies. This would meet many of our goals and open up opportunities for standards, conferences and training.

• Continued support for ICONE, whether held in the US or China. • Continued support of existing and future IWG’s in the nuclear field.

BUT – 12/2/15 Talking Points:

• Professor Liu welcomed the delegation and introductions were made on both sides. • BUT was founded in 1960 and is a Beijing Municipal University. • They have 13,000 undergraduate students and 11,000 graduate students. • China became a provisional signatory to the Washington accords in 2013. • They are looking to join the internationally accredited community of universities. • He is looking to encourage membership in international learned societies like ASME. • The delegation then took a tour of BUT’s advanced manufacturing labs including

welding and machining projects. The delegation then met with several professors and a group of about 30 students.

• Responding to Julio’s ‘three questions’, the ad of the welding Dept. noted that ASME standards are very important in China. He called for more workshops on the use of ASME welding standards.

• The manufacturing industry is increasingly calling for specific talents from graduating students.

• In the vision for 2025, technologies that have the most focus are: o Advanced manufacturing o Aerospace o Automobiles and other forms of transportation o IT o Robotics o Smart manufacturing o Utilizing IT in advanced manufacturing

• The delegation then held an open discussion with the students and faculty on the benefits of joining ASME:

o Networking with engineers around the world o Cross-pollination of applications of technologies in different industries o Career and personal growth o How to become a student member. Prof. Liu stated that the university would

cover expenses for membership fees and some travel to attend ASME events. Actionable Items:

• Providing assistance in BUT becoming ABET accredited. • Organizing a student chapter at BUT. • Conducting workshops on use of ASME standards. • Providing introductory on-line courses on ASME standards. • Maintaining close communication on the latest technologies being developed at BUT.

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ASME Board of Governors Agenda Item Cover Memo

Date Submitted: April 1, 2016 BOG Meeting Date: April 14-15, 2016 To: Board of Governors Presented by: Julio Guerrero Agenda Title: Discussion on Committee on Strategy and Planning Agenda Item Executive Summary: (Do not exceed the space provided) This presentation provides the Board with an update on the creation of the Committee on Strategy and Planning. Proposed motion for BOG Action: (if appropriate) None Attachment: Draft Committee on Strategy and Planning Suggested Guiding Principles

Minutes Appendix III Page 1 of 8

DRAFT Committee on Strategy and Planning (COSP): Suggested Guiding Principles

This document provides guiding principles for this new Committee on Strategy and Planning (COSP). During its April 2016 BOG meeting, we will ask the BOG to approve the process of creating the COSP, and endorse these guiding principles. The completion of its creation process requires BOG approvals of its Bylaws and Operating Guide. Once approved, this new committee will launch in the first BOG meeting of FY17. The approval process requires two steps, the first one takes place in the last FY2016 BOG meeting, the second one is a confirming vote on its first BOG meeting of FY17 or at the July Retreat to allow for modification (if any) and adequate review time by BOG members. Revised: March 2016 Purpose: The purpose of COSP is to assist the BOG in monitoring, assessing and helping oversee the effectiveness of Society-wide strategy and planning efforts on an on-going basis. Recognizing strategy is a dynamic process, the COSP will bring to the Board’s attention relevant dynamic characteristics of the strategy. COSP will identify and/or seek the background materials and information to help the BOG do its job regarding strategy and planning. Output from the COSP will assist the BOG in deciding how, if, and when the strategy needs to be adjusted. COSP serves in an advisory capacity with appropriate delegated authorities. The BOG is the only ASME entity that determines the ASME strategy. Key assumptions and responsibilities: 1. Board of Governors owns overall strategy. 2. The Committee on Strategy & Planning (COSP) will be a committee made up of current Governors and other appropriately qualified

individuals. All members shall (1) have appropriate qualifications –guidelines will be developed, and (2) serve multi-years terms. 3. COSP will report to the Board. It will 1) proactively help the Board engage in strategic dialogues, 2) entertain strategic inputs and

suggestions, and 3) recommend strategy-related policies and strategic actions or decisions to the Board. The Board will decide whether and how to adopt these recommendations. (COSP discusses and recommends; Board discusses, approves, rejects or modifies.)

4. COSP will not be responsible for implementing the strategic plan; rather, it is the responsibility of staff working with volunteers to implement the strategy as articulated by the BOG. COSP will work with the staff and volunteers under its delegated authority to oversee strategy development and implementation on behalf of the BOG.

5. The COSP will: a. Develop and recommend strategies to the Board, including suggestions of mid-course corrections or other changes to strategy

including measures of success. b. Facilitate communications between the different stakeholders (e.g., staff, volunteer groups). c. Identify and seek information and/or speakers to the Board to help structure their conversations related to strategy.


d. Maintain a document or set of documents that comprise an enterprise strategic plan that is regularly updated and revised, by BOG, to reflect the current situation and evolving long-term vision.

e. Work with sectors and segments of ASME through appropriate channels to facilitate alignment with the enterprise strategy. This may include issues related to development, implementation, and metrics to assess whether they are consistent and align with the actions, positions, plans, and developments of other committees reporting to the BOG (EDESC, COFI, Audit, etc). COSP may review reports (strategy documents, business plans and relevant operations plans) from the sectors & staff to monitor and promote sector-staff alignment with regard to implementation, monitoring, tracking and reporting to the Board. Areas of conflict will be reviewed and resolved by the Board.

f. Collect information from areas of ASME (with adequate disclosure to the board) that allows COSP to inform itself and measure progress of the strategic plan. Based on this evaluation, COSP may provide recommendations to the BOG to adjust the strategy evolution.

g. Monitor the external environment and trends to identify disruptions, opportunities, threats, and risks and then provide this information to BOG. As needed, COSP will make suggestions/recommendations to the BOG for adjustments to the strategy aiming to take advantage of these opportunities or avoid threats.

h. Work with the Nominating Committee to insure the enterprise strategy is well understood by NC members and is available for candidates to assist in preparing their nomination packages.

Composition of committee: The committee will include at least 8 but no more than 10 voting members. At minimum, these individuals will include:

• (3) Three BOG members – one in her/his first year of Board service, one in her/his second year of BOG service, one in her/his third year of BOG service; BOG service years will correspond to COSP service years.

• (3) Three members-at-large who are not currently on the BOG. At least one of these members must live and work outside North America. COSP should strive to have at least one member who is a current member of the IAB, preferably in an IAB leadership position. This IAB member would serve as liaison in both directions between the IAB and the COSP.

• (1) The Eclipse intern who is serving as BOG intern or has just served as BOG intern; ECLIPSE interns will serve on COSP for two years; ECLIPSE interns in odd-numbered years will serve on COSP.

• (1) The Deputy, Executive Operations will serve in this role.


In order not to be prescriptive and to allow the COSP to compose the committee to match the Society’s current opportunities and challenges, there are no predetermined requirements of the demographic characteristics of committee members. However, the COSP is encouraged to strive for diversity. COSP should consider standard diversity characteristics (e.g., age, gender, etc.) but also characteristics related to committee members’ ASME experience (e.g., SVPs, those new to ASME volunteering but deep experience in our fields, etc.) and those related to employment (e.g., industry, academia, etc.)

[Note to reader – COSP is recommended to follow COFI practices related to multi-year term, nomination & appointment process, and chair appointment] The term length for the first six members above is three years. A committee member can serve no more than two consecutive terms. However, according to ASME Policy P-4.4 (III.B.1.a), “If an individual is initially appointed to fill a partial term, that individual remains eligible to serve two full successive terms (full terms plus reappointed full term) following the initial partial term.” The Chair and Vice-chair will collect nominations from the voting members of the Committee for the selection process and nominations of COSP members. The Vice-Chair will serve as Chair of the COSP nominating committee. BOG must approve final composition. All members of COSP must be current ASME members in good standing and shall have signed the Conflict of Interest statement. Leadership: The COSP members will elect a Chair from current COSP members to serve a two-year term that ends at the close of the second business meeting of each fiscal year. First year: The initial committee members will be recommended by FY17 President and approved by FY17 Board for the COSP to start its work on or about July 15, 2016. For this first year, not all committee members will serve full three year terms. This will allow the COSP nominating committee to create the appropriate rotation of members flowing on and off the committee. A transition table to ensure this rotation will be developed and shown to the BOG in June. The initial Chair will be appointed by the FY17 President at the time of COSP launch. Timeline Phase 1: Groundwork and due diligence. IN PROCESS. - Establish Guiding Principles for COSP

o Approval from Strategy Team & PET o Identify/address policies, by-laws, op guides, etc. and share list of impacted items with BOG in November. o BOG Approve Guiding principles at April BOG meeting


Phase 2: April to June: Construction & definition. - Construct the policies, operations guides and supporting documents. - Address, clarify interface and roles of COSP with other units (initial work shown below) - Integrate efforts with communications - Identify and clarify qualifications for advisors and key constituencies:

o Within ASME/SMC o Industry o Early career engineers o Governance issues o Other

- Establish an implementation plan. o Process to populate and charge committee

- Seek approval of documents and implementation plan at June BOG Phase 3: After the COSP creation, By Laws and Operating Guide are approved: - Identify/populate committee - Launch committee

More specifically (below assumes BOG endorses):

• April BOG meeting – review guidelines • First June BOG meeting – review bylaws • Second June BOG meeting or July Retreat – approve bylaws (recall ASME rules requires two meetings for bylaw changes); review and

approve slate of committee members


Appendix 1: Summary of related committees and activities:

Committee Committee Committee

Committee on Executive Director Evaluation and Staff Compensation

Not mentioned in Operations Guide There is a citation of ASME Bylaw B5.2.7.1 in the Appendix; See Committee on Governance.

Committee on Finance and Investment

Preface: Responsibilities: A. 2. Recommend to the BOG for approval on an annual basis, a proposed reserve fund dollar amount for strategic initiatives based upon meeting the percentage established by the BOG for the reserve target of the trailing three-year average of General Fund operating expenses.

Preface: Responsibilities: E. Evaluate performance of all Society programs for conformance with their stated goals and objectives and the strategic guidance of the Society for submission to the Board of Governors.

VII. Balanced Scorecard Performance The Balanced Scorecard provides ASME with a methodology and a process for aligning programs, operations, and resources with the strategic objectives that meet the needs of mechanical engineers and the global engineering community. The activities and recommendations of the COFI with input from the President /Elect and the Senior Vice Presidents as part of their budget planning process and responsibilities will recognize and support the strategic objectives contained in ASME’s Balanced Scorecard.

Appendix E, Delegation of Authority, 10.

The publication of a strategic planning document that gives direction to the Society’s units on the initiation, conduct and evaluation of their programs.

Committee on Governance Appendix A - ASME Bylaw B5.2.7.1 The Committee on Governance (COG) under the direction of the Board of Governors, shall have the responsibility to identify and recommend appropriate training and orientation for members of the Board of Governors and to evaluate and recommend Board structures and processes that will encourage efficient and effective Board operation, governance, decision-making practices and strategic management and planning.


Committee on Honors Not mentioned in Operations Guide Committee on Organization and Rules

5.2.6 Identify and propose organizational changes which support the implementation of approved strategic planning issues; and, on request, assist in the assessment of the potential organizational impact of proposed strategic issues.

Committee of Past Presidents I. Purpose and Scope: 4. To be a forward thinking committee and aligned with the Strategic Direction of the Society, set by the Board of Governors and described through the application of the Balanced Scorecard.

Sector Management Committee 1.0 Charge: 1.1 Conducting annual strategic planning and operational planning and budgeting in collaboration with the Committee on Finance and Investment (COFI) maintaining a 3 year horizon.

1.0 Charge The BOG’s strategic objectives shall be used to guide the program planning and prioritization activities of this Committee. Sectors will assess and prioritize their portfolio of programs each year as a guide to allocating resources. The SMC shall provide annual program recommendations (e.g. program startup, retention, expansion or sunset) to the COFI while keeping within the guidelines of the strategic plan put forth by the BOG.

2.0 Membership The results of this Committee’s activities in concert with the approved budget will be reviewed at each Annual Meeting of the BOG for consistency and coherence to the strategic plan.

Purpose of the SMC

The organizational structure of the ASME conducts its business through operational units called Sectors. Each Sector operation executes its duties and responsibilities in accordance with the mission and vision of the Society to support the strategic direction set by the Board of Governors (BOG). The Sector-specific programs and cross-Sector strategic initiatives constitute the focus and the boundaries of the operations and all associated resource allocations required to execute the tactical operative parameters.


3.0 Purpose of the SMC The BOG has charged the Sector Management Committee (SMC) with providing a consolidated oversight of the Sectors’ execution of programs and strategic initiatives and business operations and planning. The purpose of the SMC is to review and validate the business cycle activities for each of the Sectors, facilitate cross-Sector communication and collaboration, and alleviate, to the extent possible, operations that lead to repetition and duplication of effort.


A Look At Market Trends and Their Implications

Board of Governors MeetingJeff Patterson

Associate Executive Director, MarketingApril 15, 2016

Minutes Appendix IV Page 1 of 17

What we’ll look at:

• Size and composition of STM publishing

• Trends to watch

• Implications

2


For-profit companies dominate STM publishing.

Source: Outsell STM Market Size, Share Forecast 2015 Report

$33.7 Billion STM Publishing Market in 2014High

Medium or Average

Low or Standard

Elsevier10.1%33.0%

Wolters Kluwer, Wiley, Springer

Science, Thomson Reuters, Informa,

IHS, athenahealth, China Science,

WebMD

1.3%IEEE

2.1%ASME, ACM, AIAA, AICE, ANS, ASCE, ASHRAE, ASM, SAE, SME, SPE, SWE

Elsevier is the dominant STM publisher with $3.4B in 2014

revenue

Global society publishing• $10.2 billion• 30.3% of global STM

publishing• 1,000 professional

associations and learned societies

BroadestNarrowest

3


Outsell’s STM Market Map and Value Chain shows the breadth of for-profit competitors:

Scientific, Technical & Medical Market Value Chain

Largest Companies in order of revenue

Content Creation

Content Aggregation

Content Delivery

ResearchWorkflow

Society Services

Elsevier

Wolters Kluwer

John Wiley & Sons

Springer Science

Thomson Reuters

Informa

IHS

Key: = Heavy Concentration = No Concentration= Moderate Concentration

Source: Outsell STM Market Size, Share Forecast 2015 Report


Source: Outsell, Standards: Market Size, Share, Forecast and Trends, April 2016 (DRAFT)

2015 standards revenue

2014 standards revenue

% change from 2014

% change from 2014

2015 market shareOrganization (US dollars) (US dollars) (US dollars)

(reported currency)

IHS 308.7 294 5.00% 5.00% 23.40%

BSI (British Standards Institution Group) 84.1 85.7 -1.90% 5.80% 6.40%

DIN (Deutsches Institut fur Normung) 67 77.5 -10.00% 7.70% 5.10%

SAI Global 62.7 69.6 -9.90% 8.20% 4.70%

ASTM (American Society for Testing and Materials) 48.6 46.2 5.20% 5.20% 3.70%

NFP (National Fire Protection Association) 47 56 -16.10% -16.10% 3.60%

Techstreet 46.1 40.8 13.00% 13.00% 3.50%

IEEE 38.8 37 5.00% 5.00% 2.90%

ASME (American Society of Mechanical Engineers) 36.5 38.9 -6.20% -6.20% 2.80%

AFNOR (Association Francaise de Normalisation) 35 36.4 -3.80% 15.20% 2.60%

NOTE: Approximately 60% of ASME standards sales come through resellers

5


For-profit companies want

what we have

Content producers are

rethinking development

processes

Social media is a now platform for

professional development

Four developments demand our attention:

Changing demographics

mean changing definitions of

value


1. Millennials are now the largest age cohort in the U.S. workforce…

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

1995 2000 2005 2010 2013 2015 Q1

Boomers Gen Xers Millennials

53.552.7

44.6

Sources: Pew Research Center tabulationsMonthly 1995-2015 Current Population SurveysIntegrated Public Use Microdata Series (PUMS); Catalyst

The Generations Defined

The Millennial GenerationBorn: 1981-1997Age of adults in 2015: 18-34

Generation XBorn: 1965-1980Age of adults in 2015: 35-50

The Baby Boom GenerationBorn: 1946-1964Age of adults in 2015: 51-69

… and will comprise half of the global workforce by 2020.

7


India produced 85% more S&E graduates than the U.S. in 2012.

Sources: UNESCO and National Science Foundation data


32% of ASME members are Millennials.

Students 23%

All other members

68%

Members <35 years old

9%

Source: ASME membership data as of 2/29/20169


2. LinkedIn occupies a remarkably broad and valuable position in social media.

Source: Millennial Knowledge Workers’ Information HabitsOutsell, December 2015

“When it comes to using social media for professional use only, LinkedIn is the clear winner, with no other choice even reaching double digits. LinkedIn is also the clear choice when it comes to choosing a platform for both professional and personal use.”


LinkedIn’s $1.5 billion acquisition of Lynda.com reflects a growing focus on professional development.


3. B2B media companies want what we have:

High engagement

Thriving face-to-face events

Paid subscriptions


4. For subject matter prone to rapid change, book publishers are rethinking traditional methods of bringing content to market.

2.Publisher

recruits author

3. Author drafts manuscript

4.Author & Editor

finalize text; book design completed

5.Book sold to wholesalers;

books available for sale

1. Publisher

identifies topic

18-24 months from start to finish


The “book sprint” reduces time-to-market to weeks.Minutes Appendix IV

Page 14 of 17

Implications

• We must be aware of evolving conditions.• We must be open to new solutions.• We must be willing to experiment.• We must be focused on results.

“Think big. Start small. Scale fast.”Ed MorrisNational Additive Manufacturing Innovation Institute

15


What we’re focused on in Marketing & Sales

1. Plan and execute marketing campaigns with relentless attention to outcomes, not just activity.

2. Expand sales channels to convert opportunities into revenue.

3. Create a relevant, compelling value proposition rooted in deep understanding of evolving customer needs.

4. Identify, prioritize and capitalize on opportunities for growth, consistent with our mission.

5. Evaluate current business models and product sets, and devise new models as necessary to meet customer demand.

6. Initiate a product development process optimized for early customer adoption and rapid time-to-revenue.

16


Questions?


FY17 PlanningK. Keith Roe, PEASME President-elect

Minutes Appendix V Page 1 of 24

Revenue Impact


Strategic Focus in FY17: Building the Foundation for the Future

Two Critical Objectives:• Effective strategy

• We have to get this right

• Raising our game• Improving how we operate

This is our collective responsibility!

3


Constant & Continuous Improvement with Continuity of Direction… How?BOG & PET

• Constant vigilance to ensure our mission, vision, and strategic plan are appropriate and driving stability & growth

• Follow our mission and vision

• Follow our strategic plan• Address critical issues in

context of the strategy

President

• Select a few focus areas for the year to advance the strategy

• Ensure they map to mission, vision, and strategic plan

Driving Force

BOG & PET President

4


Communication is Critical• Since one can never communicate

enough during times of change, I will work with the PET, EMT, and the SMC to lead an effort to communicate a common and consistent message of the exciting future of ASME across all of the ASME enterprise!

5


Inside Keith’s BrainMy aspiration

6


ASME ―10 Years from Now

• Dynamic, world-class technology experts built on a stable of vital technologies : “The global technology hub “

• Advancing society and expanding engineering capabilities

• Engaged in cutting-edge technologies that are changing the world

• Engaged in enduring technologies that are sustaining the world

• Making the world a better, more caring place for everyone

7


The Picture of Growth• Globally relevant and referenced:

• With a broad global reach• Ecosystems of innovation• Expanding influence

• Strong, engaged ASME leadership• Engaged, connected members • Providing sought after value

• For early career engineers (ECE) and students and digitally native ME’s

• For industry and its’ leadership• For other members and constituents

8


Pursuing our Goal,Fulfilling Our Mission!

ASME will enhance its relevance and impact

to global constituents by being the leader

in advancing engineering technology

9


• Thumbs Vote• Thumbs up

• Completely in support

• Thumbs sideways

• Maybe• Thumbs

down• No way!

10


Thoughts Into Action

• Build implementation plans using 10-3-1• Task Forces• July 2016 Retreat• How we meet, what we talk about, how we

interact, what we work on

11


Thoughts into Action: What Do We Hope to See a Year From Now?• What outcomes do we hope to see in April 2017?

• What will the foundation (for the future) look like?• Will we look different? …do things differently?• Have we achieved the “1” in “10-3-1”?

• Hope to see emerging images of a re-invented organization….. …aligned with strategy

• BOG meetings will have changed• Emphasis will have changed• Discussion will be different, more animated, more strategic and

generative…. ...oriented around technologies• The volunteers will understand and embrace where we are going!• The organization will be energized and focused• Products and services will be expanding• ASME Foundation will be an integral mission enabler

12


Thoughts into Action: How Did We Get Here? ….. What Did We Accomplish in Year 1?• Focused on “Building the foundation for the future”• On the Harder Side:

• Got strategy foundation laid and guided through the COSP• Laced foundation with critical inputs to increase its’ effectiveness and reach

• Bring in Student ECE and DMI insights• Bring in industry engagement insights• Bring in globalization insights

• Built budget around funding priorities to support strategy implementation• Use focused funds to support vital strategic initiatives

• On the Softer Side:• Raised expectations across ASME• Commenced building a hard/soft culture• Built SMC engagement and leadership role among volunteers• Built staff-volunteer muscle• Built the Board leadership role

• All the while focused on our mission and vision!13


Critical: Raising the Level of Our GameA performance-based culture that is high-energy, focused, committed to a shared vision

• Discipline• Market focus• Financial emphasis• Results emphasis• Built on cooperation and

professionalism

14


Strategic Focus Areas in FY17

• Will request continuation of three SMC task forces• Industry Leadership Engagement Task Force• Students & Early Career Engineers Task Force• SMC Groups and Sections Task Force

• Creation of one new BOG Task Force• Building a High Performance Board Task Force

• Inaugural year for Committee on Strategy and Planning (COSP)

• April – review guidelines• June – BOG will be asked to approve the creation• July – BOG will be asked to approve inaugural slate of

members

15


Industry Leadership Engagement• Industry and industrial companies comprises one of

ASME’s most critical stakeholders in the fulfillment of ASME’s mission through the production and deployment of educational and safety related products, programs and services. But their leadership is underrepresented.

• The task force will:• Evaluate current industry executive/senior management

engagement in ASME in whatever form it occurs. • Evaluate potential avenues for additional engagement;• Examine Best Practices and analyze how other

organizations engage industry executives and identify best practices for ASME consideration;

• As part of strategy implementation planning, identify ways to emphasize industry leadership aspects of strategic market selection and development;

• Identify forums for ASME leadership engagement to broaden its industry network (examples EEI and NEI) and improve its brand visibility with industry leadership;

• Identify how to use the increased industry senior leadership participation to identify and address new opportunities

• Advise how to best implement the TF recommendations as part of the strategy implementation, including how to recruit industry leadership into the proposed roles;

• Engage with committees and other groups, internal and external, related to this scope (e.g., IAB).

Student, ECE & Digital ME Engagement• It is a well understood maxim that the young are our

future. Fully engaging them will secure our future!• The taskforce will:• Examine the evolution and transformation of mechanical

engineering to the world of the digital mechanical engineer.

• Undertake a data and experiential analysis to understand Students and ECEs’ current level of engagement and the challenges to continued/expanded engagement worldwide.

• As part of strategy implementation planning, identify ways to emphasize the Digital ME and the Student and ECE aspects of strategic market selection and development.

• Examine Best Practices and analyze how other organizations engage their younger members and identify best practices for ASME consideration;

• Review and as appropriate, engage with the participants in the “Vision 2030 – Preparing Tomorrows Engineers” to learn how we build on their conclusions and actions including the transformation to the Digital Mechanical Engineer and the Digital Multi-discipline Engineer.

• Evaluate ways ASME can become more relevant in the student and ECEs lives and careers and better communicate the many exciting opportunities in ASME.

• Evaluate any other actions that would successfully contribute to the goal of increasing this constituency’s engagement.

Accelerating Strategy Implementation

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Joint Pres/SMC TF - Timing: end 4/17 Joint Pres/SMC TF - Timing: end 4/17 16


Group Engagement/Alignment

•Focus: near term Group engagement/alignment•Explore how groups not addressed in reorg can

align to ASME strategy implementation•How can SMC best support the desired group

engagement in strategy implementation•Develop a communications plan for reaching the

groups and creating a more connected feeling•Determine metrics for success for groups•Targeted engagement by TF with current and

future volunteer leaders to examine:•group leadership opportunities, training, and

development;•structure(s) and engagement paths can help

groups align to the strategy and best use their talents and resources;

•group inputs as “voice of the customer” based on the constituent base they represent (including international); and

•how groups can help develop and distribute value to their communities.

•Pass identified longer term issues as appropriate to the two Presidential/SMC task forces

•Final brief to SMC at IMECE

Building a High Performance Board

•New strategy will raise customer expectations•As the guiding body of the organization, changing

the culture starts with the BOG. The Board must lead this change

•Mimic best practices of FP and NFP Boards to:•Create a high performance culture within the

Board•Ensure we understand and feel ownership of

strategy and a common vision of the future it can bring

•Sharpen our discipline and focus• Increase emphasis on our fiscal health •Raise the level of dialogue through focused

agendas •Forge closer ties and a working partnership with

the EMT, SMC and other volunteer leadership•Review and clarify our roles & responsibilities to

better reflect new strategy needs•Define and embrace a new culture for the

organization that support our new strategy

Accelerating Strategy Implementation

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Presidential TF - Timing: 6/16 - 6/17 SMC TF - Timing: end 12/2016 17


• Thumbs Vote• Thumbs up

• Completely in support

• Thumbs sideways

• Maybe• Thumbs

down• No way!

18


Lead In with Board Best Practices• Some early Board Best Practices

• All serving on a committee or Task Force• Affirm expectation to read ALL pre-read material in advance; be

prepared to discuss if and as appropriate• Enhanced, more frequent financial statements• Improve Board communications and strategic focus – some

examples• In meetings and between meetings

• Re-focus Board agendas • Thoughts on BOG agendas in the future

• Meeting start: strategic perspectives and meeting strategic objectives Focus on and discuss most critical Board level issues

• Financial Review and • Strategic Review and Dialogue led by COSP• Task Force Updates • Review of Critical Issues• Update on Key Initiatives• Progress towards our vision and mission

• Allow time for discussion and generative topics19


July RetreatPreliminary Thinking• Raising our game – internal focus

• Discuss roles & responsibilities of BOG, President, ED, SMC• Discuss our modus operandi – what is a high performing board?

How do we institutionalize? • Restore some broken trust

• Effective strategy – external focus• This includes setting ASME on a course to consistent fiscal

responsibility• Set us on a clear path that will diversify our revenue base

• Remember “By 2025, ASME is called upon…to increase its mission impact as measured by reliable metrics, including growth in donations and program revenues of at least 100%; and to diversify its revenue streams so that 50% or more of all revenues derive from new and existing sources other than Standards and Certifications”

20


Proposed Roadmap

T+13 days (Retreat)

External view – Strategic implementationInternal view - High performing organization with focus on Board

- Launch and populate COSP

T-23 days (June BOG)

Create a plan for FY17 BOG meetingsPlan out agendas and topics – focus on strategy

T-78 days (today)Discuss ideas with BOG

Set path for SMC-related Task Forces

21


• Too Much? Unrealistic?• Don’t we have more time?• Do our constituents really expect all this from

the Board and Society leadership?• “Better to try and fail, than to not try at all!”

• Do I or we know precisely how we are going to get there? No!

• But do we have the ability and wisdom to figure it out? Absolutely!

• We all need to be fully committed ASME Leaders• Let’s raise our game across all of ASME

A MIGHTY TASK BEFORE US!!!

22


• Am I barking up the right tree?• Thumbs up - Completely in support• Thumbs sideways - Maybe• Thumbs down - No way!

23


What does success look like for you in 365 days?

24


Association Future State…one ED’s view.

April 2016

Minutes Appendix VI Page 1 of 22

Objective of the session…

Share and discuss the long-term potential future state of ASME as seen through the eyes of your executive director.

To address the charge:1. Share personal view of future based on

current conditions.2. Establish an understanding of where we’ve

come from and where we are going.3. Paint a picture of a plausible scenario for

ASME’s future.



Macro-External:US/Global Issues

Power/water/foodEnvironment/Climate

InfrastructureSecurity

Adjacent:US/Global Industry & Association

Industry Operating Systems (e.g. Predix)Social Media, Membership & Engagement

Robotics, Automation & Virtual RealityLeadership & Governance

Litigation & RegulationVelocity & Competition

IBR & Open AccessDigitization & IOT

M&A

Micro-External:US/Global with direct impact

Digital & TechnologySocial Media

Robotics (physical and intellectual)Energy & PowerManufacturingCyber-securityBig Data & IOT

GlobalPolitics

Internal:Strategy

TrajectoryReadinessVelocityCulture

ED

Relevant trends that impact ASME:



Macro-External:US/Global Issues

Power/water/foodEnvironment/Climate

InfrastructureSecurity

Adjacent:US/Global Industry & Association.

Industry Operating Systems (e.g. Predix)Social Media, Membership & Engagement

Robotics, Automation & Virtual RealityLeadership & Governance

Litigation & RegulationVelocity & Competition

IBR & Open AccessDigitization & IOT

M&A

Micro-External:US/Global with direct impact.

Digital & TechnologySocial Media

Robotics (physical and intellectual)Energy & PowerManufacturingCyber-securityBig Data & IOT

GlobalPolitics

Internal:Strategy

TrajectoryReadinessVelocityCulture

ED

Relevant trends that impact ASME:


Everything is interrelated


What GE’s ‘Brilliant Factory’ tells us…

Predictive & adaptive smart system

Data-driven

& smart

Integrated

…moving to closed loop system linked by data and EVERYTHING is connected.

Entire life-

cycle



This is the future I see …Convergence: Connected Products, Systems & Processes

– Enabling factors: IOT, sensors, robotics/automation, analytics/intelligence, self-correcting… RESULT: practical singularity

– Example: In-service data drives auto-correcting design, manufacture, etc. Make anything!

– Advanced manufacturing on molecular level… RESULT: practical alchemy– Example: Soft tissue now…gold next?

Human condition:– Material things have less value…make anything?!– Meaning has more value…why are we here?

• Experiential Life…real or virtual?– Community: Shared experiences and goals

• Knowledge creation & dissemination• Security for all…Food, water, and infrastructure

integrityExistential Threats remain:

– War– Environment Privileged and confidential 6


This is the future I see …Convergence: Connected Products, Systems & Processes

– Enabling factors: IOT, sensors, robotics/automation, analytics/intelligence, self-correcting… practical singularity

– Example: In service data drives auto-correcting design, manufacture, etc. Make anything!

– Advanced manufacturing on molecular level… practical alchemy– Example: Soft tissue now…gold next?

Human condition:– Material things have less value…make anything?!– Meaning has more value…why are we here?

• Experiential Life…real or virtual?– Community: Shared experiences & goals

• Knowledge creation & dissemination• Security for all…Food, water, and infrastructure

integrityExistential Threats remain:

– War– Environment

Future Association



What it means to Associations…Practical Singularity & Alchemy: Standards remain essential…

Ensure safety, reliability, consistency & predictability Ensure smart regulation Ensure interoperability Ensure trade

Community: Share experiences, common interests & goals

Knowledge creation & dissemination: Technologies Learning & sharing

Meaning: Sharing skills, knowledge & experiences to improve the human condition



• The collection and diffusion of knowledge

• The advantages of personal acquaintance (associate & convene) among the members

Characteristics for the Society at Founding

• The educational value (knowledge creation & dissemination) of writing papers and debating them

• The significance of a high quality of leadership



• The collection and diffusion of knowledge

• The advantages of personal acquaintance (associate & convene) among the members

Characteristics for the Society at Founding

• The educational value (knowledge creation & dissemination) of writing papers and debating them

• The significance of a high quality of leadership



The ASME of 2025Strategy

Culture

Operations

New operational competency:- 10/3/1, IOP & ERP- Market Focus/rigor- M&A- Product Development- Agile/fast- Invest- Manage risk- Learn & adjust

1880

1930

1980

2000

2020

2030



ASME as Tetris

Org.

Strategy

Tech

nolo

gies

Operations

IBR & Threats

Objective: nest pieces.Player wins when pieces fall in line

Player rotates and/or nudges pieces right orleft.

Pieces advance downward and have to be nudged and rotated in order to align.

Leadership & Governance

Bus. Models

Pieces coming next:



ASME as Tetris

Org.

Strategy

Tech

nolo

gies

Operations

IBR & Threats

Leadership & Governance

Bus. Models

Pieces coming next:

Winning…but look what’s coming…

Previous wins…ConsolidatedBanking; relocations; TEC; etc.

So, why the metaphor?Until now, the principal role of ED/staff has been to align the many forces and constituencies by achieving success through management & alignment of specific projects.



Enterprise ObjectiveBy 2025, ASME is called upon to be the go-to organization to help address key technology-related challenges in the public

interest in a manner that engages core engineering constituencies (government, academia, industry, engineers,

students, and technology-development professionals);

to increase its mission impact as measured by reliable metrics, including growth in donations and program revenues of at least 100%; and to diversify its revenue streams so that

50% or more of all revenues derive from new and existing sources other than Standards and Certifications



FY 2015 – FY 2025

2015 2025

Revenue Expense Net

ASME’s Revenue to double by 2025; and more than 50% of revenue to come

from new and existing sources other than Standards and Certification



The ASME of 2025

ASME is to go-to resource for technology advancement through an integrated portfolios of products, services, programs and content

Extended relationships about the world delivering high-impact programs to key constituents

500,000+ members

200,000+ volunteers and content contributors

$235 Million in annual revenue

NPS Score of 50



New Playbook is required: Integrated Operating Plan• Business plans & planning for mission

– New products & programs– New approaches– Redirect resources as needed

• Language of management & success– “Raise the Game” of staff and volunteers.– “Real” growth strategies based on Market need

• New/clarified roles for key players…– Align authority and accountability

• Invest in Programs and Products:– Leverage all of ASME’s assets

Change is difficult & messy…Getting to “B” is not a straight shot



ASME – Reinvent core competencies:

Standards that are developed & issued as versions

Standards that are manifest as a process & performance-based embedded in “smart factory”

Conferences where research is presented/represented in a paper

Ongoing “Living” communities where knowledge is created, shared and built

upon

Conformity Assessment as “monitored” credential/inspection

processCA/inspection lives in virtual reality

Growth achieved through scaled –up version of today’s org

ASME living mostly in the cloud with technology continuously

forming/dissembling


Products that evolve organically from existing technologies and standards.

Products and services that reflect market need around technologies.


Technologies…same and different

Products & Svcs.:StandardsPublicationsMedia

Constituents:CustomersVolunteersMembersStaff

Experiences:Tours & HolidaysConferences & Knowledge ExchangesUser groups & Meet-upsCelebrations (awards & recognitions)

Technology Hub 1




Technology Hub




Technology Hub




Technology Hub

2025: ASME may live in the cloud



Technologies…same and different




Technology Hub 1




Technology Hub




Technology Hub




Technology Hub

2025: ASME may live in the cloud


2025: ASME may host of a series of inter-connected technology hubs:- ASME is the “go-to” hub to establish, convene,

develop, explore technologies.- Hubs come and go based on demand and interest.

Some will be seeded.- ASME will build related products and services

around the hubs based on market need.- Academia will flock to ASME as the destination for

thought leadership in emerging technologies.- Industry will be drawn to ASME to follow the

leading edge of technology (thought leadership) including safety codes & standards and education.

- Students and early career will be attracted to gain access to the thought leaders; insight to new technologies and access to the community.

- International professionals will be attracted for the reasons stated above and the opportunity to share their own insight


“Scientists discover the world that exists; engineers create the world that never was.” Theador Von Karmen





SMC Report for BOGBobby GrimesSr. VP, TEC SectorApril 15, 2016

Minutes Appendix VII Page 1 of 7





A very good meeting was held with HTD leaders in NYC on Jan 25, with meeting minutes and action items which are still being progressed. The email received on April 13 contains more on these same items, plus a couple of new requests, which clearly fall under the purview of the TEC Sector.

The SMC respectfully requests that President Guerrero, on behalf of the Board, sends a letter to these HTD leaders, instructing them to engage the TEC Council to address the various matters raised in their attached document.


77ASME Foundation

The Technology Development Curve

R&D

Ascent

Maturity

Decline

CommercializationValley of Death

….

The Technology Development Curve

R&DOptimizing

Accelerateinitiation

ASME wants to advance technology – and engineers – at all stages of the Technology Development “S” Curve

Your groups may be comfortable todaydeveloping and delivering content to only portions of this curve. But our markets want your content all along this curve.

7



Date Submitted: April 1, 2016 BOG Meeting Date: April 14 – 15, 2016 To: Board of Governors From: COFI Presented by: Victoria Rockwell Agenda Title: Pension Plan Contribution - Cash Transfer Consent Item Executive Summary: The Board of Governors will be asked to approve the disbursement of $6.0 million to the ASME Pension Plan. This $6.0 million has been reviewed and approved by the COFI and has been reviewed and approved by the Pension Plan Trustees. Proposed motion for BOG Action: (if appropriate) To approve the disbursement of $6.0 million to the ASME Pension Plan. This disbursement will be executed by ASME Accounting staff. Attachments: None Board of Governors Consent Item $6.0 million pension plan contribution MOTION: To approve the disbursement of $6.0 million to the ASME Pension Plan. This disbursement will be executed by ASME Accounting staff. Note: The $6.0 million pension plan contribution is an item that is not incremental to the 2017 budget as the expense for the accrual of pension plan liabilities is included in the operating budget. This consent will give the ASME accounting staff the authority to execute the $6.0 million contribution to the pension plan in July, 2016.

Minutes Appendix VIII Page 1 of 1


Date Submitted: April 1, 2016 BOG Meeting Date: April 14-15, 2016 To: Board of Governors From: COFI Presented by: Victoria Rockwell Agenda Title: Membership Dues Increase Agenda Item Executive Summary: COFI has reviewed the 2016-2017 membership dues calculation. COFI voted to recommend to increase membership dues to $151.00 to the Board of Governors. Proposed motion for BOG Action: COFI recommends approval to increase membership dues for 2016-2017 to $151.00. Attachments: ASME 2016-2017 Membership Dues Calculation

MOTION:

To approve 2016-2017 membership dues of $151.00.

Minutes Appendix IX Page 1 of 2

ASME 2016-2017 Membership Dues Calculation

October 2015 Dues

$149.37

January 2016 CPI 236.916 January 2015 CPI 233.707 Inflator (Jan 16 CPI ÷Jan 15 CPI)

101.37 October 2016 Membership Dues allowable under ASME C9.1.1

$151.42

Recommended October 2016 Membership Dues $151.00 (Rounded down as per Society Policy 14.5)

Minutes Appendix IX Page 2 of 2

MARCH 2016

PROPOSED APPOINTMENTS TO ASME UNITS

Internal Unit Nominee Appointment Position/Title

Appointment Term/Category

Appointment Type History

Committee on Organization and Rules

Kathryn Ingle Member-at-Large June 2016 – June 2019 Reappointment Past Member, Board on Government Relations

Committee on Organization and Rules

Keith Thayer Member-at-Large June 2016 – June 2019 Reappointment Member, Committee of Past Presidents

Council on Standards and Certification

Thomas Kurfess Member-at-Large June 2016 - June 2019 Initial Member, Board on Government Relations


Michel Margat Member-at-Large June 2016 - June 2019 Initial Chair, Conformity Assessment Body Forum


Shao Binan Member-at-Large June 2016- June 2019 Initial Chair, BPV II Materials China International Working Group


Steven Wallace Member-at-Large June 2016 - June 2019 Initial Chair, Board on Standardization and Testing

Pension Plan Trustees Richard Goldstein Member-at-Large July 2016 - June 2019 Reappointment (documentation for addition term is attached)

Member, Committee on Finance and Investment

Pension Plan Trustees Webb Marner Member-at-Large July 2016 - June 2019 Reappointment Initial service on Pension Plan Trustees was as a result of being the ASME Treasurer

Pension Plan Trustees Reginald Vachon Member-at-Large July 2016 – June 2019 Reappointment Member, VOLT Academy

Student and Early Career Development Council

Ankush Gupta Member-at-Large July 2016 – June 2017 Initial Member, Student Liaison Committee


Marianne Chan Member-at-Large July 2016 – June 2017 Initial Chair, Information and Communications Committee


Siva Pilli Member-at-Large July 2016 – June 2017 Initial Member, Management Division Executive Committee

Minutes Appendix X Page 1 of 2

Minutes Appendix X Page 2 of 2


Date Submitted: 3/25/16 BOG Meeting Date: 4/15/16 To: Board of Governors From: (Sector/Unit/Task Force/Other) Presented by: Bob Sims, EDESC Chair Agenda Title: 457(b) Deferred Compensation Plan Amendment Agenda Item Executive Summary: (Do not exceed the space provided) The proposed amendment to the Plan is intended to reflect the creation by the Board of a Plan Fiduciary Committee (the “Fiduciary Committee”, By Law B5.2.5.4) to act as Plan Administrator and named Fiduciary of the Plans with the duties and responsibilities as set forth in the amendment attached.

Proposed motion for BOG Action: (if appropriate) Approve the ASME 457(b) Deferred Compensation Plan Amendment Attachments:

Minutes Appendix XI Page 1 of 42

Narrative and Resolutions of the

Board of Governors of The American Society of Mechanical Engineers

Amendment and Restatement of

The ASME 457(b) Deferred Compensation Plan

April 15, 2016

The Board of Governors of The American Society of Mechanical Engineers (the “Board”) has determined to amend and restate the ASME 457(b) Deferred Compensation Plan (the “Plan”) in the following particulars. The proposed amendments to and restatement of the Plan are intended to reflect the creation by the Board of a Plan Fiduciary Committee (the “Fiduciary Committee”) to act as Plan Administrator of the Plan with the duties and responsibilities as set forth in the restatement as attached hereto.

Such amendments authorize the Fiduciary Committee, under the terms of the Plan, to take such actions as the Board has deemed appropriate for such a fiduciary committee, including to act as Plan Administrator of the Plan and assume such responsibilities as developing a Plan investment policy statement, selecting and monitoring investment choices, benchmarking Plan administration expenses and investment plan administrators performance and selecting, appointing and retaining plan investment, governance and plan administration compliance advisors for the Plan as well as having the power to make ministerial and technically required plan amendments as set forth in the proposed amendments to the Plan.


Resolutions

WHEREAS, The American Society of Mechanical Engineers (“ASME”) maintains the ASME 457(b) Deferred Compensation Plan (the “Plan”);

WHEREAS, it has been determined that it is desirable to amend and restate the Plan to reflect the creation by the Board of Governors of ASME (the “Board”) of a Plan Fiduciary Committee (the “Fiduciary Committee”) to act as Plan Administrator of the Plan with the duties and responsibilities as set forth in the restatement attached hereto, and to authorize the Fiduciary Committee, under the terms of the Plan, to take such actions as the Board has deemed appropriate for such a fiduciary committee; and

WHEREAS, pursuant to Section 9.1 of the basic plan document under the Plan, ASME may amend the Plan; and

NOW, THEREFORE, BE IT:

RESOLVED, that the Plan, as amended and restated and attached hereto as Exhibit A, is hereby approved and adopted, and it is further

RESOLVED, that the appropriate officers of ASME are hereby authorized to take such other actions, including but not limited to, the execution and approval of appropriate documents, the modification of such documents and the distribution of relevant disclosure documents to participants in the Plan, as they deem necessary or appropriate in light of the preceding preambles and resolutions.


ADOPTION AGREEMENT FOR THE ASME 457(b) DEFERRED COMPENSATION PLAN, A NON-GOVERNMENTAL TAX-EXEMPT ORGANIZATION


1. General Information

(A) Name of Tax-Exempt Employer: American Society of Mechanical Engineers (B) Address of Tax-Exempt Employer: Two Park Ave. New York, NY 10016 (C) Name of Plan: The ASME 457(b) Deferred Compensation Plan (D) Federal Tax ID Number of Tax-Exempt Employer: 13-1623899 (E) Plan Administrator's Name and Address: ASME Two Park Ave, New York, NY 10016

2. Effective Date / Restated Effective Date (Article I - Definitions) (Select one) (A) [ ] The Plan is a new plan. The Effective Date is __________. (B) [ X ] The Plan is a restated plan. The Restated Effective Date is January 1, 2016.

The Plan's initial Effective Date was May 1, 2003.

3. Plan Year (Article I - Definitions) (Select all that apply) Plan Year means: (A) [ X ] The calendar year. (B) [ ] The Plan Year is a twelve (12) month period beginning on __________ and ending on

the following __________. (C) [ ] The initial Plan Year is a short Plan Year beginning on __________ and ending on

__________. Thereafter, the Plan Year will be the twelve (12) month period selected in Box 3(A) or Box 3(B) above.

4. Definition of Compensation (Article I - Definitions)

(Please make a selection in (A) and (B)) (A) [ ] Compensation is defined as W-2 wages (including differential wage payments)

[ ] Compensation will be defined as W-2 wages exclusive of the following: __________ [ X ] Compensation will be defined as follows:


Base pay, excluding bonus payments

(B) If so selected, this amount also includes pay for accrued bona fide sick, vacation or other leave pay (but not severance pay). (Note: Any such pay must be paid within the later of 2 ½ months following Severance from Employment or the end of the calendar year which includes the date of Severance from Employment.)

[ ] Yes, include. If yes, select which types of accrued leave pay will apply to the Plan.

(1) [ ] Accrued bona fide sick pay (2) [ ] Accrued vacation pay (3) [ ] Other accrued leave pay (describe): __________.

[ X ] No, do not include.

5. Eligible Employee (Article I - Definitions) (Select all that Apply) (A) Eligible Employees shall be limited to a select group of management or highly compensated

employees ("Top Hat group") which will be defined as follows:

Managing Directors and Staff Levels Above Managing Director

(B) Employees identified as independent contractors will be included as Eligible Employees if selected below.

[ ] Yes, apply. [ X ] No, do not apply.

(C) Employees identified as directors/trustees will be included as Eligible Employees if selected below.


6. Contract Selection and Alternate Investment Sponsors (Article I - Definitions)

(A) Investment Options are any investments made available by either TIAA-CREF under its contracts (including the use of TIAA-CREF or non-proprietary mutual funds) or any other Investment Sponsor and selected for use under this Plan by the Employer, or its designee. All the Investment Options shall be owned by the Employer. The contracts that will be offered by TIAA-CREF under the Plan are: (Select all that apply)

[ ] TIAA Retirement Choice Plus Annuity Contract ("TIAA RCP") and a CREF Retirement


Choice Plus Annuity Contract ("CREF RCP"). [ ] TIAA Retirement Choice Annuity Contract ("TIAA RC") and a CREF Retirement Choice

Annuity Contract ("CREF RC"). [ ] TIAA Stable Value Annuity Contract ("TIAA Stable Value") in conjunction with the

Retirement Choice Contract. If this option is selected, the RC Contract will also be included in the selection.

[ X ] For plans in existence prior to January 1, 2013, TIAA Group Annuity Contract (“TIAA

GA”) and a CREF Group Annuity Contract ("CREF GA").

(B) Alternate Investment Sponsors. (Select one)

[ X ] No, alternate Investment Sponsors are not available under the Plan. TIAA-CREF is the sole Investment Sponsor under the Plan.

[ ] Yes, alternate Investment Sponsors are available under the Plan. (List alternate

Investment Sponsors) __________

7. Investment Allocation (Section 8.4) (Select one) (A) [ X ] A Participant will have the ability to initially select an investment allocation from the

Investment Options available under the Plan. Participants are also permitted to change their investment allocation and transfer existing accumulations among the Investment Options offered under the Plan by submitting a written or electronic request to the Employer or its designee pursuant to the administrative practices required by the Employer or its designee. However, notwithstanding this provision, the Employer retains sole discretion and authority to invest all assets.

(B) [ ] Only the Employer will have the ability to initially select an investment allocation from

the Investment Options available under the Plan. The Employer will also be permitted to change the investment allocation and transfer existing accumulations among the Investment Options offered under the Plan by submitting a written or electronic instruction to the Investment Sponsor, as required or permitted by each Investment Sponsor.

8. Normal Retirement Age (Article I - Definitions)

(Select one) General Rule. Normal Retirement Age (“NRA”) can be defined as any age that is on or after the earlier of age 65 or the age at which a Participant can retire and receive an unreduced benefit under the Employer’s defined benefit plan (or if there is no defined benefit plan or if Participants cannot participate in that plan, a money purchase pension plan in which Participants also participate), and that is not later than age 70 ½. Alternatively, an Eligible Plan may choose or permit participants to choose any NRA that is within those ages.


(A) [ X ] Normal Retirement Age will be age 65. (B) [ ] Normal Retirement Age will be age __________. (C) [ ] Normal Retirement Age will be the age selected by each Participant. (D) [ ] Normal Retirement Age is defined as follows: __________

9. Annual Deferrals (Section 3.1) (Select one) (A) [ X ] Annual Deferrals may be made to the Plan up to the maximum amount permitted by

law. (B) [ ] Annual Deferrals may be made to the Plan up to a maximum amount equal to

__________ provided that in no event may such deferrals exceed the maximum amount permitted by law.

(C) [ ] Annual Deferrals may only be made to this Plan up to the maximum permitted by law

after maximizing Elective Deferrals to the Employer's 403(b) plan. (D) [ ] Annual Deferrals may not be made to the Plan.

10. Deferral of Special Pay (Section 3.3) (Select one) If selected below, a Participant may elect to defer accumulated sick pay, accumulated vacation pay, and other leave pay provided that in no event shall such deferrals to the Plan exceed the maximum amount permitted by law. [ ] Yes, apply. (Question 4.(B) must also be checked, Yes.) [ X ] No, do not apply.

11. Special Section 457 Catch-up Limitation (Section 3.7(b)) (Select one) If selected below, the special Section 457 catch-up contributions may be made to the Plan up to the maximum amount permitted by law. [ X ] Yes, apply. [ ] No, do not apply.

12. Employer Non-Elective Contributions (Section 3.5) Note: Any Employer contribution will reduce, dollar for dollar, the amount the Participant can defer to the Plan and in no event shall the combined total of Participant and Employer contributions exceed the maximum amount permitted by law.


(Select one) [ ] The Employer will make non-elective contributions to the Plan on behalf of all Active

Participants in an amount equal to __________% of the Participant's Compensation. [ ] The Employer will make non-elective contributions to the Plan as follows (include a

description of the class(es) of Active Participants receiving the contribution and the amount or if the contribution will be discretionary and only made to certain Active Participants as designated by the Employer in its discretion):__________

[ X ] The Employer will not make any non-elective contributions to the Plan.

13. Employer Matching Contributions (Section 3.6) Note: Any Employer contribution will reduce, dollar for dollar, the amount the Participant can defer

to the Plan and in no event shall the combined total of Participant and Employer contributions exceed the maximum amount permitted by law. (Select one) (A) [ ] The Employer will make matching contributions to the Plan on behalf of Active

Participants who make an Annual Deferral pursuant to a Deferred Compensation Agreement in an amount equal to ___ % of the Participant's Compensation that is contributed to the Plan for the Plan Year.

(B) [ ] The Employer will make matching contributions to the Plan on behalf of Active

Participants who make an Annual Deferral pursuant to a Deferred Compensation Agreement in an amount equal to ___ of the first ___ of the Participant's Compensation that is contributed to the Plan for the Plan Year.

(C) [ ] The Employer will make matching contributions to the Plan as follows (include a

description of the class(es) of Active Participants receiving the contribution and the amount or if the contribution will be discretionary and only made to certain Active Participants as designated by the Employer in its discretion):

(D) [ X ] The Employer will not make any matching contributions to the Plan.

14. Plan-to-Plan Transfers to the Plan (Section 3.9) (Select one) Please note that, in general, direct plan-to-plan transfers to the Plan can only be made from another non-governmental tax-exempt Eligible 457(b) Deferred Compensation Plan and if the Participant is an Eligible Employee of the Employer. No transfers to the Plan can be made by a Beneficiary. (A) [ X ] Direct transfers may be made to the Plan from another non-governmental tax-exempt

Eligible 457(b) Deferred Compensation Plan to the extent permitted by law. (B) [ ] Direct transfers may be made to the Plan from another non-governmental tax-exempt

Eligible 457(b) Deferred Compensation Plan, subject to the following limitations:


__________ (C) [ ] Direct transfers may not be made to this Plan.

15. Plan-to-Plan Transfers from the Plan (Section 5.2) (Select one) Please note that plan-to-plan transfers from the Plan can only be made to another non-governmental tax-exempt Eligible 457(b) Deferred Compensation Plan after the Participant's Severance from Employment unless the transfer is with respect to a Participant's Beneficiary. (A) [ X ] Direct transfers from the Plan may be made to another non-governmental tax-exempt

Eligible 457(b) Deferred Compensation Plan to the extent permitted by law. (B) [ ] Direct transfers from the Plan may be made to another non-governmental tax-exempt

Eligible 457(b) Deferred Compensation Plan, subject to the following limitations:__________

(C) [ ] Direct transfers from the Plan may not be made.

16. Initial Deferral of Distribution Option for Participants (Section 4.4) (Select A or B) Unless selected below, Participants may elect to delay the commencement of a distribution following the date of Severance from Employment (“initial election period”). Any such election must be made before distributions have commenced. In no event can the Participant's election to delay distributions be later than the date distributions are required to begin under Section 401(a)(9) of the Code. (A) [ X ] Yes, apply. (Select one)

(1) [ X ] The initial election period is sixty (60) days following the date of the Participant’s Severance from Employment.

(2) [ ] The initial election period is __________ following the date of the Participant’s

Severance from Employment. (3) [ ] The initial election period is defined as the following: __________

(B) [ ] No, do not apply.

17. Second Deferral of Distribution Option for Participants (Section 4.4) (Select one) If selected below, Participants may elect to further delay (but not accelerate) the commencement of a distribution if the election is made before distributions have commenced according to the initial election period. In no event can the Participant's election to delay distributions be later than the date distributions are required to begin under Section 401(a)(9) of the Code.


[ X ] Yes, apply. [ ] No, do not apply.

18. Distribution Options Available for Participants (Section 5.1) (Select all that apply) In general, distributions from the Plan will be made in a single lump sum payment. If selected, the following distribution options shall be available to Participants who are eligible for a distribution from the Plan:

(A) [ X ] Single Lump Sum (B) [ X ] Fixed Period Annuity: (select all that apply)

(1) [ X ] 2-30 years at the Participant's election (2) [ ] Limited to the following fixed periods: (select all that apply)

(a) [ ] 5 years (b) [ ] 10 years (c) [ ] 15 years (d) [ ] 20 years

(C) [ X ] Lifetime Annuity (single life or joint life) (D) [ X ] Required Minimum Distribution (E) [ X ] Other option(s) permitted under the Investment Options offered by TIAA-CREF: Any other options permitted by the investment vehicles

19. Initial Deferral of Distribution Option for Beneficiaries (Section 6.1) (Select A or B) Unless selected below, Beneficiaries may elect to delay the commencement of a distribution following the date of the Participant’s death (“initial election period”). Any such election must be made before distributions have commenced. In no event can the Beneficiary's election to delay distributions be later than the date distributions are required to begin under Section 401(a)(9) of the Code. (A) [ X ] Yes, apply. (Select one)

(1) [ X ] The initial election period is sixty (60) days following the date of the


Participant’s death. (2) [ ] The initial election period is __________ following the date of the Participant’s

death. (3) [ ] The initial election period is defined as the following: __________

(B) [ ] No, do not apply.

20. Second Deferral of Distribution Option for Beneficiaries (Section 6.1) (Select one) A Beneficiary may elect to further delay (but not accelerate) the commencement of a distribution if the election is made before distributions have commenced according to the Beneficiary's initial election to delay distributions. In no event can the Beneficiary's election to delay distributions be later than the date distributions are required to begin under Section 401(a)(9) of the Code. [ X ] Yes, apply. [ ] No, do not apply.

21. Death Benefit Payment Options Available (Section 6.2) (Select all that apply) In general, distributions from the Plan will be made in a single lump sum payment. If selected, the following distribution options shall be available to Beneficiaries who are eligible for a distribution from the Plan: (A) [ X ] Single Lump Sum (B) [ X ] Fixed Period Annuity: (select all that apply)

(1) [ X ] 2-30 years at the Participant’s election (2) [ ] Limited to the following fixed periods: (select all that apply)

(a) [ ] 5 years (b) [ ] 10 years (c) [ ] 15 years (d) [ ] 20 years

(C) [ X ] Other option(s) permitted under the Investment Options offered by TIAA-CREF: Any other options permitted by the investment vehicles


22. Default Distribution Type (Section 5.5)

(Select one) Absent a timely election for a different form of payment, distributions from the Plan will be made in a single lump sum payment. If selected below, the default distribution type will be: (A) [ X ] Single Lump Sum (B) [ ] Fixed Period Annuity: (Select all that apply) [ ] 5 years [ ] 10 years

23. Latest Default Distribution Date (Section 4.4 and Section 6.1) (Select one) If a distribution election is not made prior to the expiration of the initial election period, the default distribution type will be paid on or within: [ X ] 90 days following the date of the Participant’s Severance from Employment or the date of

death, as applicable. [ ] Other (describe): __________

24. Payment of Benefits (Section 11.7) (Select one) [ ] Payments of benefits under the Plan will be made directly by the Employer to the Participant.

In addition to making the distributions of benefits to Participants and Beneficiaries from the Plan, the Employer acknowledges it will remain responsible for all withholding and reporting of all federal and state income taxes due on the distributions as well as contributions to the Plan. Note: FICA taxes apply when the deferred amounts are earned by the Participant, FUTA taxes apply when the amounts are deferred to the Plan.

[ X ] Payment of benefits will be made by the applicable Investment Sponsor directly to the

Participant. In selecting this option, the Employer is directing and authorizing TIAA-CREF to act as the Employer’s tax withholding and reporting agent for the Plan. In addition, the Employer must complete and file the Withholding Agent Request Form, IRS form 2678, to enable the Investment Sponsor to act as Employer's agent for tax withholding and reporting purposes when making all benefit payments to Participants. The Employer acknowledges it will remain responsible for the withholding and reporting of all federal and state income taxes until the appointment process is complete and the Letter of Approval from the IRS has been received by TIAA-CREF. The Employer further acknowledges it will also remain responsible for all withholding and reporting of all FICA and FUTA income taxes on amounts deferred to the Plan. Note: FICA taxes apply when the deferred amounts are earned by the Participant. FUTA taxes apply when the amounts are deferred to the Plan.


25. Unforeseeable Emergency (Section 4.2)

(Select one) If selected below, a Participant may receive a distribution due to Unforeseeable Emergency prior to Severance from Employment. [ ] Yes, apply. If “Yes” is selected, please select who will be making the determination approving

an Unforeseeable Emergency: [ ] Employer/Plan Administrator [ ] Other Investment Sponsor/Third Party Administrator (name): __________ [ ] TIAA-CREF (only Employers with prior approval may elect this option) [ X ] No, do not apply.

26. Small Balance In-service Distribution (Section 4.3) (Select one) If selected below, a Participant may receive an in-service distribution of all or a part of his or her benefit if the total amount of the Participant’s benefit is less than $5,000 (or the dollar limit under Section 411(a)(11) of the Code) and the requirements of Section 4.3 of the Plan are satisfied. [ X ] Yes, apply. [ ] No, do not apply.

27. Special Severance from Employment Definition for Independent Contractors (Section 4.1(c)(2)) (Select one):

The special definition of "Severance from Employment" contained in Section 4.1(c)(2) of the Plan

will be applied to all Participants classified as independent contractors if selected below.

[ ] Yes, apply [ X ] No, do not apply

28. Special Payment Date Restrictions for Independent Contractors (Section 4.1(b)) (Select one): If selected below, the special payment date restrictions for independent contractors contained in Section 4.1(b) will be applied. [ ] Yes, apply


[ X ] No, do not apply

29. In-Service Distribution at Age 70 ½ (Section 4.1) (Select one) If selected below, a Participant may receive a distribution of all or a portion of his or her benefit upon attainment of age 70 ½ prior to Severance from Employment. [ X ] Yes, apply. [ ] No, do not apply.

30. Special Considerations Relating to Military Service (Section 4.1(d)) A tax-exempt 457(b) plan is not required to but may elect to provide the following benefits.

(Please make a selection in (A) and (B)) (A) Death or Disability If selected below, Participants who have died or became Disabled while

performing qualified military service will be treated as if they returned to employment the day preceding the date of death or Disability and had a Severance from Employment on the date of death or Disability.

(Select one)

[ X ] Yes, apply to both deceased and Disabled Participants. [ ] Yes, apply to deceased Participants. [ ] No, do not apply.

(B) Deemed Severance from Employment. If selected below, Participants who have been called to active duty for 30 or more days will be deemed as having a Severance from Employment for purposes of receiving a distribution under the Plan. Any distribution under this Section 4.1(d) requires a suspension of Annual Deferrals under the Plan for six (6) months.

(Select one)


31. Qualified Domestic Relations Orders (Section 8.5) (Select one) NOTE: A non-governmental tax-exempt Eligible 457(b) Deferred Compensation plan is not required, but may elect, to accept Qualified Domestic Relations Orders. Under the terms of the Plan and unless selected below, distributions pursuant to Qualified Domestic Relations Orders will not be honored. If selected, Qualified Domestic Relations Orders


will be honored under the Plan [ X ] Yes, apply. If Yes is selected, distributions to the alternate payee will be made as soon as

administratively possible. [ ] No, do not apply.

By executing this Adoption Agreement, the Employer adopts the 457(b) Deferred Compensation Plan described herein and in the Plan document. The selections and specifications contained in this Adoption Agreement together with the terms, provisions and conditions provided in the Plan document constitute the Plan. The provisions you select in completing this Adoption Agreement will apply to your Plan as if they were set forth in the Plan document. An improperly completed Adoption Agreement may result in the failure of your Plan to satisfy the requirements of an eligible deferred compensation plan under Section 457(b) of the Code. In completing this Adoption Agreement, you are urged to consult with your attorney or tax advisor. Other than the limited tax reporting of distributions as agreed to in Section 24, if so elected by the Employer, it is understood that TIAA-CREF is not a party to the Plan and shall not be responsible for any tax or legal aspects of the Plan. The Employer assumes responsibility for these matters. The Employer acknowledges that it has counseled, to the extent necessary, with its attorney or other tax advisor. The obligations of the Investment Sponsors shall be governed solely by the provisions of its contracts and policies. TIAA-CREF shall not be required to inquire into any action taken by the Employer or the Plan Administrator and shall be fully protected in taking, permitting or omitting any action on the basis of the actions of the Employer or the Plan Administrator. TIAA-CREF shall incur no liability or responsibility for carrying out actions as directed by the Employer or the Plan Administrator. IN WITNESS WHEREOF, this Adoption Agreement has been executed this __________ day of __________, 2016. Employer: American Society of Mechanical Engineers By: ________________________ Printed Name: ________________________ Title: ________________________ V4.02-4.02


Rider to the Adoption Agreement of the ASME 457(b) Deferred

Plan Administrator

Notwithstanding anything to the contrary in the basic plan document (including, but not limited to, Article VIII) or the related adoption agreement, the Plan Fiduciary Committee approved by the Board of Governors of the Employer shall be the Plan Administrator with the full powers and duties of such position as set forth in the Plan and is authorized to develop and maintain a Plan investment policy statement governing diversification, selection and monitoring of investment choices under the Plan; benchmark Plan administration expenses and investment performance and select, appoint and retain Plan advisors with expertise in defined contribution plan investment options, plan administration responsibilities including governance and compliance. Further, the Plan Fiduciary Committee is authorized to amend the Plan if (i) an amendment is required by law or regulation; (ii) an amendment is due to technical, conforming or ministerial changes or (iii) any amendment that will not have a significant impact upon the Plan, provided, however, that the power to amend the Plan in any way that materially increases the cost of the Plan shall be reserved solely to the Board of Governors of the Employer.

Plan Amendment:

Notwithstanding anything to the contrary in the basic plan document (including, but not limited to, Section 9.01) or the related adoption agreement, the Plan Fiduciary Committee is authorized to amend the Plan if (i) an amendment is required by law or regulation; (ii) an amendment is due to technical, conforming or ministerial changes or (iii) any amendment that will not have a significant impact upon the Plan, provided, however, that the power to amend the Plan in any way that materially increases the cost of the Plan shall be reserved solely to the Board of Governors of the Employer.


457(b) DEFERRED COMPENSATION PLAN OF AMERICAN SOCIETY OF MECHANICAL ENGINEERS, A TAX-EXEMPT ORGANIZATION


Contents

ARTICLE I – DEFINITIONS...........................................................................................................1 1.1 Annual Deferral ...................................................................................................................1 1.2 Adoption Agreement ...........................................................................................................1 1.3 Beneficiary ..........................................................................................................................1 1.4 Code ...................................................................................................................................1 1.5 Compensation.....................................................................................................................1 1.6 Deferred Compensation Agreement ...................................................................................2 1.7 Differential Wage Payment .................................................................................................2 1.8 Disabled or Disability ..........................................................................................................2 1.9 Effective Date .....................................................................................................................2 1.10 Eligible Deferred Compensation Plan or Eligible Plan ........................................................2 1.11 Eligible Employee ...............................................................................................................2 1.12 Employee ............................................................................................................................2 1.13 Employer.............................................................................................................................3 1.14 Includible Compensation ....................................................................................................3 1.15 Investment Options .............................................................................................................3 1.16 Investment Sponsors ..........................................................................................................3 1.17 Normal Retirement Age ......................................................................................................3 1.18 Participant ...........................................................................................................................3 1.19 Plan.....................................................................................................................................3 1.20 Plan Administrator ..............................................................................................................3 1.21 Plan Year ............................................................................................................................3 1.22 Restated Effective Date ......................................................................................................3 1.23 Severance from Employment .............................................................................................4 1.24 TIAA-CREF .........................................................................................................................4

ARTICLE II – PARTICIPATION IN THE PLAN..............................................................................4 2.1 Eligibility ..............................................................................................................................4 2.2 Enrollment in the Plan.........................................................................................................4 2.3 Information Provided by the Participant ..............................................................................4 2.4 Contributions Made Promptly .............................................................................................5 2.5 Leave of Absence ...............................................................................................................5 2.6 Disability .............................................................................................................................5

ARTICLE III – DEFERRAL OF COMPENSATION ........................................................................5 3.1 Annual Deferrals .................................................................................................................5 3.2 Modifications to Amount Deferred ......................................................................................5 3.3 Deferral of Special Pay .......................................................................................................5 3.4 Termination of Deferral .......................................................................................................5 3.5 Employer Non-Elective Contributions .................................................................................6 3.6 Employer Matching Contributions .......................................................................................6 3.7 Maximum Deferral ..............................................................................................................6 3.8 Vesting ................................................................................................................................7 3.9 Plan-to-Plan Transfers to the Plan......................................................................................7 3.10 Qualified Military Service ....................................................................................................8

ARTICLE IV – DISTRIBUTIONS ...................................................................................................8 4.1 Eligibility for Payment .........................................................................................................8 4.2 Distribution Due to Unforeseeable Emergency...................................................................9

TIAA-CREF Financial Services © Tax-Exempt 457(b) Deferred Compensation Plan 6/2013


4.3 Small Balance In-service Distributions .............................................................................10 4.4 Commencement of Distributions.......................................................................................11

ARTICLE V – FORM OF PAYMENT ...........................................................................................11 5.1 Form of Payment ..............................................................................................................11 5.2 Plan-to-Plan Transfers from the Plan ...............................................................................12 5.3 Minimum Distribution Requirements During Participant's Lifetime ...................................13 5.4 Election .............................................................................................................................13 5.5 Failure to Make Election ...................................................................................................13

ARTICLE VI – DEATH BENEFITS ..............................................................................................14 6.1 Commencement of Distributions to Beneficiaries .............................................................14 6.2 Form of Payment ..............................................................................................................14 6.3 Death Distribution Requirements ......................................................................................15

ARTICLE VII – BENEFICIARY INFORMATION ..........................................................................16 7.1 Designation .......................................................................................................................16 7.2 Failure to Designate a Beneficiary ....................................................................................16

ARTICLE VIII – PLAN ADMINISTRATION ..................................................................................16 8.1 Plan Administration ...........................................................................................................16 8.2 Accounts and Expenses ...................................................................................................17 8.3 Mistaken Contribution .......................................................................................................17 8.4 Investment Experience .....................................................................................................17 8.5 Domestic Relations Orders ...............................................................................................18 8.6 IRS Levy ...........................................................................................................................18 8.7 Procedure When Distributee Cannot be Located .............................................................18 8.8 Payments to Minors and Incompetents ............................................................................18 8.9 Claims Procedures ...........................................................................................................19

ARTICLE IX – AMENDMENT OR TERMINATION OF PLAN .....................................................20 9.1 Amendment of Plan ..........................................................................................................20 9.2 Termination of Plan...........................................................................................................20

ARTICLE X – UNFUNDED PLAN ...............................................................................................20

ARTICLE XI – MISCELLANEOUS ..............................................................................................20 11.1 Plan Non-Contractual .......................................................................................................20 11.2 Claims of Other Persons...................................................................................................21 11.3 Non-Assignability ..............................................................................................................21 11.4 Contracts ..........................................................................................................................21 11.5 Pronouns ..........................................................................................................................21 11.6 Representations................................................................................................................21 11.7 Tax Reporting ...................................................................................................................21 11.8 Severability .......................................................................................................................22 11.9 Applicable Law..................................................................................................................22



INTRODUCTION

The purpose of the Plan is to provide deferred compensation for a select group of management or highly compensated employees covered under the Plan. The Plan document and the Adoption Agreement are designated as constituting parts of a plan intended to satisfy the requirements of a top hat plan under Sections 201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended, and an eligible deferred compensation plan within the meaning of Section 457(b) of the Code, the regulations issued thereunder, and other applicable law.

ARTICLE I – DEFINITIONS

1.1 Annual Deferral means the annual amount of Compensation that a Participant elects to

defer pursuant to a properly executed Deferred Compensation Agreement. 1.2 Adoption Agreement means the separate agreement that is executed by the Employer

which sets forth the elective and certain non-elective provisions of the Plan. The Adoption Agreement and this Plan document collectively constitute the Plan.

1.3 Beneficiary means the individual, trustee, estate, or legal entity entitled to receive

benefits under this Plan which become payable in the event of the Participant’s death. 1.4 Code means the Internal Revenue Code of 1986, as now in effect or as hereafter

amended. All citations to sections of the Code are to such sections, as they may from time to time be amended or renumbered, to the Treasury regulations issued thereunder or to any applicable guidance issued by the IRS.

1.5 Compensation means, unless otherwise set forth in the Adoption Agreement, all cash

remuneration for services rendered to the Employer, including salary, wages, fees, commissions, bonuses, overtime pay (collectively referred to as “regular pay”) and that is includible in the Participant’s gross income for the calendar year plus amounts that would be cash remuneration for services to the Employer and includible in the Participant’s gross income for the calendar year but for an election under Section 457(b), 403(b), 401(k), 125, 132(f)(4), 401(k), 403(b) or 457(b) of the Code (including an election to defer Compensation under Article III) or such other meaning as provided by Section 415(c)(3) of the Code. Such term also includes regular pay received after Severance from Employment if it is received within the later of two and one-half (2 ½) months following Severance from Employment or the end of the limitation year that includes the date of Severance from Employment. To the extent elected in the Adoption Agreement, such term shall also include unused accrued bona fide sick, vacation, and/or other leave payments provided the Participant would have been entitled to use such leave had employment continued and such amounts are received by the Plan within the later of two and one-half (2 ½) months after Severance from Employment or the end of the limitation year that includes the date of Severance from Employment. Effective January 1, 2009, the term Compensation includes Differential Wage Payments.

1 TIAA-CREF Financial Services © Tax-Exempt 457(b) Deferred Compensation Plan 6/2013


1.6 Deferred Compensation Agreement means the agreement between a Participant and the Employer to defer receipt by the Participant of Compensation not yet paid or otherwise made available. Such agreement shall state the Annual Deferral amount to be withheld from a Participant’s Compensation and shall become effective no earlier than the first day of the month following execution of such agreement. Once executed and received by the Plan Administrator, or its designee, the Deferred Compensation Agreement shall be legally binding and irrevocable with regard to amounts paid or otherwise made available while the Agreement is in effect.

1.7 Differential Wage Payment means any payment which is made by the Employer to an

Employee with respect to any period during which the Employee is performing service in the uniformed services (as defined in chapter 43 of title 38 of the Code) while on active duty for a period of more than thirty (30) days, and such payment represents all or a portion of the wages the Employee would have received from the Employer if the Employee were performing service for the Employer.

1.8 Disabled or Disability means the definition of disability in Section 72(m)(7) of the Code

as determined by the Employer. 1.9 Effective Date means the date set forth in the Adoption Agreement if this is a new Plan.

1.10 Eligible Deferred Compensation Plan or Eligible Plan means a plan that constitutes an

eligible deferred compensation plan within the meaning of Section 457(b) of the Code that is established and maintained by an employer that is a tax-exempt entity and eligible to maintain a 457(b) deferred compensation plan.

1.11 Eligible Employee means any person who performs services for the Employer and who,

pursuant to the terms of the Adoption Agreement, is eligible to participate in this Plan. Unless elected in Adoption Agreement, Eligible Employee shall not include any individual who is deemed to be an independent contractor, as determined by the Plan Administrator in its sole and absolute discretion. If any individual is not classified as an Eligible Employee by the Employer and is subsequently reclassified as an Eligible Employee by any governmental or regulatory authority, such individual shall nevertheless be deemed to have become an Eligible Employee prospectively only, effective as of the date of such reclassification (and not retroactive to the date on which he or she was found to have first become eligible for any other purposes), and then only if he or she otherwise satisfies the requirements of this Plan.

1.12 Employee means any person who performs services for the Employer as a common law

employee to whom compensation is paid on a regular basis, any leased employee as defined in Section 414(n) of the Code, and any individual receiving a Differential Wage Payment from the Employer. If elected in the Adoption Agreement, the term Employee shall include any individual classified by the Employer as an independent contractor or trustee of the Employer, in accordance with its general administrative policies.



1.13 Employer means the entity that has adopted this Plan and is named in the Adoption Agreement.

1.14 Includible Compensation means with respect to a taxable year, the Participant’s

compensation as defined in Section 415(c)(3) of the Code and the Treasury regulations issued thereunder for services performed for the Employer. The amount of Includible Compensation is determined without regard to any community property laws. Such term shall include any amount that would be cash remuneration for services to the Employer and includible in the Participant’s gross income for the calendar year but for an election under Section 457(b), 403(b), 401(k), 125, 132(f)(4), 401(k), 403(b) or 457(b) of the Code (including an election to defer Compensation under Article III). Effective January 1, 2009, Includible Compensation will include Differential Wage Payments made by the Employer to a Participant.

1.15 Investment Options means the annuity contracts, custodial accounts, and other

investment options offered by TIAA-CREF and selected by the Employer or its designee as investment options to be offered to Participants and Beneficiaries under the Plan. Investment Options shall also include any other investment alternatives made available by any other Investment Sponsor and designated by the Employer pursuant to the terms of this Plan document and the Adoption Agreement as being available for the purpose of allocating contributions and transfers, if any, and measuring investment experience attributable to book entry accounts established under this Plan.

1.16 Investment Sponsors means TIAA-CREF, any other insurance company, regulated

investment company, or other entity providing Investment Options under the Plan. 1.17 Normal Retirement Age means age 65 unless otherwise provided in the Adoption

Agreement. 1.18 Participant means an Eligible Employee who becomes a Participant in the Plan in

accordance with Article II hereof. An individual shall cease to become a Participant at such time as he or she no longer has any interest in contracts or accounts under the Plan. An “Active Participant” means a Participant who is currently an Employee.

1.19 Plan means the 457(b) Deferred Compensation Plan set forth herein and in the Adoption

Agreement, as amended from time to time. 1.20 Plan Administrator means the individual(s) or committee appointed by the Employer to

administer the Plan. If the Employer fails to make such appointment, the Employer shall be the Plan Administrator.

1.21 Plan Year means the twelve (12) consecutive month period designated by the Employer

in the Adoption Agreement. 1.22 Restated Effective Date means the date set forth in the Adoption Agreement if the Plan

is a restated plan.

3



1.23 Severance from Employment means the date the Participant dies, retires, or otherwise severs employment with the Employer as determined by the Plan Administrator or its designee (and taking into account guidance issued under the Code). To the extent elected in the Adoption Agreement, such term shall also include a deemed Severance from Employment during any period the Participant is performing services in the uniformed services for a period of more than thirty (30) days.

1.24 TIAA-CREF means Teachers Insurance and Annuity Association and College Retirement

Equities Fund. ARTICLE II – PARTICIPATION IN THE PLAN

2.1 Eligibility.

(a) Eligible Employees. If this is a new plan, any Employee who is classified as an

Eligible Employee under the terms of the Adoption Agreement as of the Effective Date shall be eligible to participate in the Plan on the Effective Date. If this is a restated plan, each present Participant shall continue to be a Participant in the Plan. Any other Employee who is classified as an Eligible Employee under the terms of the Adoption Agreement as of the Restated Effective Date shall be eligible to participate in the Plan on the Restated Effective Date.

(b) Non-Eligible Employees. If this is a new plan, any Employee who is not eligible

to participate in the Plan as of the Effective Date pursuant to paragraph (a) above, shall be eligible to participate in the Plan upon classification as an Eligible Employee. If this is a restated plan, any Employee who is not eligible to participate in the Plan as of the Restated Effective Date pursuant to paragraph (a) above, shall be eligible to participate in the Plan upon classification as an Eligible Employee.

2.2 Enrollment in the Plan. To participate in the Plan, each Eligible Employee shall complete

and remit the applicable enrollment forms, including a Deferred Compensation Agreement, to the Plan Administrator or its designee. Enrollment shall be effective on or after the first day of the month following the date the properly completed enrollment forms are remitted to and accepted by the Plan Administrator or its designee. A newly hired Eligible Employee may defer Compensation payable in the calendar month in which he or she becomes an Employee if a Deferred Compensation Agreement is entered into on or before the first day on which the Eligible Employee performs services for the Employer.

2.3 Information Provided by the Participant. Each Eligible Employee enrolling in the Plan

should provide to the Investment Sponsor or the Plan Administrator, as required, at the time of initial enrollment, and later if there are any changes, any information necessary or advisable for the Investment Sponsor or the Administrator, as appropriate, to administer the Plan, including, without limitation, whether the Eligible Employee is a participant in any other Eligible Plan.



2.4 Contributions Made Promptly. Annual Deferrals under the Plan shall be transferred to the applicable Investment Option within a period that is not longer than is reasonable for the proper administration of the Plan. In no event, shall any Annual Deferrals be transferred to the applicable Investment Option later than fifteen (15) days following the end of the month in which the amount would otherwise have been paid to the Participant.

2.5 Leave of Absence. Unless a Deferred Compensation Agreement is otherwise revised, if

a Participant is absent from work by paid leave of absence, Annual Deferrals under the Plan shall continue to the extent Compensation continues.

2.6 Disability. A Disabled Participant may elect to make Annual Deferrals during any portion

of the period of his or her Disability to the extent that he or she has actual Compensation (not imputed compensation and not disability benefits) from which to make deferrals to the Plan and has not had a Severance from Employment.

ARTICLE III – DEFERRAL OF COMPENSATION

3.1 Annual Deferrals. If elected pursuant of the terms of the Adoption Agreement, an

Eligible Employee may elect to make Annual Deferrals to the Plan pursuant to a Deferred Compensation Agreement with the Employer. Annual Deferrals may be made up to the applicable annual limits under the Code or, or if less, the amount set forth in the Adoption Agreement. Subject to the rules of the applicable Investment Sponsor, the Plan Administrator may establish a minimum Annual Deferral amount and may change such amount from time to time. The Deferred Compensation Agreement may also include a designation of Investment Options and a designation of a Beneficiary. Any such election shall remain in effect until a new election is filed.

3.2 Modifications to Amount Deferred. A Participant may elect to change the amount of his

or her Annual Deferral with respect to future Compensation by submitting a new and properly executed Deferred Compensation Agreement to the Plan Administrator or its designee. Pursuant to the rules of the Investment Sponsor, if any, unless the new Deferred Compensation Agreement specifies a later effective date, a change in the amount of Annual Deferrals shall take effect as of the first day of the next following month or as soon as administratively practicable thereafter.

3.3 Deferral of Special Pay. If elected in the Adoption Agreement, a Participant may elect to

defer accumulated bona fide sick, vacation, and/or other leave pay. These amounts may be deferred for any calendar month only if an agreement providing for the Annual Deferral is entered into before the beginning of the month in which the amounts would otherwise be paid or made available.

3.4 Termination of Deferral. A Participant may terminate his or her participation election by

so notifying the Plan Administrator or its designee in using the administrative practices specified by the Plan Administrator or its designee. Such administrative practices may

5



include electronic notice, if made available to Participants. Notwithstanding the provisions in Section 3.2 above, any such termination shall take effect as soon as administratively practicable following receipt by the Plan Administrator or its designee of satisfactory notice of such revocation.

3.5 Employer Non-Elective Contributions. If elected in the Adoption Agreement, the

Employer shall make non-elective contributions (other than Employer matching contributions, if any, made pursuant to Section 3.6, below) to the Plan on behalf of Active Participants. No Participant shall have the right to elect to receive any amount contributed pursuant to this Section 3.5 as cash in lieu of a contribution. All such non-elective contributions shall be made at the rate or in the amount set forth in the Adoption Agreement. Any non-elective contribution will reduce, dollar for dollar, the annual amount the Participant can defer to the Plan and in no event shall the combined total of Participant and Employer contributions exceed the maximum amount permitted by law.

3.6 Employer Matching Contributions. If elected in the Adoption Agreement, the Employer

shall make matching contributions (other than Employer non-elective contributions, if any, made pursuant to Section 3.5, above) to the Plan on behalf of Active Participants who make Annual Deferrals to the Plan pursuant to a Deferred Compensation Agreement. No Participant shall have the right to elect to receive any amount contributed pursuant to this Section 3.6 as cash in lieu of a contribution. All such matching contributions shall be made at the rate or in the amount set forth in the Adoption Agreement and shall be based on the amount of Annual Deferrals made by an Active Participant to the Plan during the year. Any matching contribution will reduce, dollar for dollar, the annual amount the Participant can defer to the Plan and in no event shall the combined total of Participant and Employer contributions exceed the maximum amount permitted by law.

3.7 Maximum Deferral.

(a) Primary Limitation. The maximum amount that may be contributed to the Plan

pursuant to Sections 3.1, 3.5, and 3.6 hereof on behalf of any Participant, other than by means of a plan-to-plan transfer, shall not exceed the lesser of: (1) the annual applicable dollar amount, as set forth in Section 457(e)(15) of the Code, or (2) 100% of the Participant’s Includible Compensation for the taxable year.

(b) Special Section 457 Catch-Up Limitation. If elected in the Adoption Agreement,

for one (1) or more of the last three (3) taxable years ending before the calendar year of a Participant’s attainment of Normal Retirement Age (“NRA”), the Participant may utilize the catch-up provision under Section 457(b)(3) of the Code, When special Section 457 catch-up is utilized, the maximum amount that may be contributed to the Plan pursuant to Sections 3.1, 3.5, and 3.6 hereof on behalf of a Participant, other than by means of a plan-to-plan transfer, shall be the lesser of X or Y. X shall be, for any taxable year beginning on or after January 1, 2002, twice (2 times) the applicable dollar amount in effect under Section 457(b)(2)(A) of the Code for such year. Y shall be the sum of (i) the primary limitation amount determined under Section 3.7(a), above, for the year, and (ii) underutilized amounts, which is that portion of the primary limitation amount determined under

6



Section 3.7(a), above, that is not utilized by the Participant in prior taxable years in which the Participant was eligible to participate in the Plan. The special Section 457 catch-up limitation is available to a Participant during one (1) three (3)-year period only. If the Participant uses the special Section 457 catch-up limitation and then postpones retirement or returns to work after retirement, the Participant cannot utilize special Section 457 catch-up again, even if he or she has underutilized amounts in the Plan or only utilized special Section 457 catch-up in less than all of the three (3) years prior to the year the Participant attained his or her NRA.

(c) Coordination with Other Code Section 457(b) Plans. If a Participant

participates in more than one (1) Code Section 457(b) plan, all Code Section 457(b) plans are aggregated and the maximum deferral under all such plans shall not exceed the applicable limit described in Section 3.7(a), above, or if the special Section 457 is utilized, the applicable limitation described in Section 3.7(b), above).

(d) Distribution of Excess Deferrals. To the extent that any amount deferred under

the Plan for any taxable year exceeds the limitations of this Section 3.7, any excess deferrals will be distributed pursuant to the applicable provisions of the Code, regulations, or other IRS guidance issued thereunder.

3.8 Vesting. A Participant shall be fully vested at all times in his or her accrued benefits

under this Plan. Such accrued benefits shall be non-forfeitable at all times. 3.9 Plan-to-Plan Transfers to the Plan. To the extent provided in the Adoption Agreement

and pursuant to the rules of each Investment Sponsor, a Participant, but not a Beneficiary, may elect to make contributions that are transferred directly from the Participant’s prior employer’s Eligible Deferred Compensation Plan under Section 457(b) of the Code. Notwithstanding the foregoing, transfers shall be permitted only to the extent (i) the transferor plan provides for such direct transfers, (ii) the receiving plan provides for the receipt of plan-to-plan transfers, and (iii) the Participant will have an amount deferred immediately after the transfer at least equal to the amount deferred with respect to that Participant immediately before the transfer, and (iv) the Participant gives written direction to the Employer or its designee in a satisfactory form to make such transfer. The Plan Administrator may require such documentation from the other plan as it deems necessary to effectuate the transfer in accordance with Section 457(e)(10) of the Code and Section 1.457-10(b) of the Treasury regulations and to confirm that the other plan is an eligible plan as defined in Section 1.457-2(f) of the Treasury regulations.

The amount so transferred shall be credited to the Participant’s Account Balance and shall be held, accounted for, administered and otherwise treated in the same manner as an Annual Deferral by the Participant under the Plan, except that the transferred amount shall not be considered an Annual Deferral under the Plan in determining the maximum deferral limit under Section 3.7. Such funds and the accumulation generated from them shall be fully vested and nonforfeitable at all times.

7



3.10 Qualified Military Service.

(a) Notwithstanding any provision of this Plan to the contrary, contributions, benefits, and service credit with respect to qualified military service will be provided in accordance with Section 414(u) of the Code.

(b) A Participant whose employment is interrupted by qualified military service under

Section 414(u) of the Code or who is on a leave of absence for qualified military service under Section 414(u) of the Code may elect to make additional Annual Deferrals upon resumption of employment with the Employer equal to the maximum Annual Deferrals that the Participant could have elected during that period if the Participant’s employment with the Employer had continued (at the same level of Compensation) without the interruption or leave, reduced by the Annual Deferrals, if any, actually made for the Participant during the period of the interruption or leave. This right applies for five (5) years following the resumption of employment (or, if sooner, for a period equal to three (3) times the period of the interruption or leave).

ARTICLE IV – DISTRIBUTIONS

4.1 Eligibility for Payment.

(a) Subject to the terms of the Investment Options, distribution of benefits from the

Plan shall be made no earlier than: (i) when the Participant has a Severance from Employment (other than due to death), (ii) Plan termination, and, if elected in the Adoption Agreement: (iii) the calendar year in which the Participant attains age 70- 1/2, (iv) in the event of an approved financial hardship due to an Unforeseeable Emergency, or (v) the Participant is eligible for an in-service distribution of his or her small Account Balance.

(b) Notwithstanding the foregoing, if elected in the Adoption Agreement, with respect

to amounts payable to a Participant who is classified as an independent contractor, as determined by the Plan Administrator in its sole and absolute discretion, no amount will be paid to the Participant before a date at least twelve (12) months after the day on which the contract expires under which services are performed for the Employer (or, in the case of more than one contract, all such contracts expire); and no amount payable to the Participant on that date will be paid to the Participant if, after expiration of the contract (or contracts) and before that date, the Participant performs services for the Employer as an independent contractor or an Employee.

(c) “Severance from Employment” means the termination of a Participant’s

employment with the Employer for any reason including the Participant’s death or retirement.

8



(1) A Participant will be deemed to have incurred a Severance from Employment without regard to whether such Participant continues in the same job for a different employer following liquidation, merger, consolidation, or other similar transaction.

(2) Pursuant to an election in the Adoption Agreement, “Severance from

Employment” for a Participant classified as an independent contractor shall mean the cessation of services upon expiration of the contract (or in the case of more than one contract, all contracts) under which services are performed for the Employer provided the expiration constitutes a good-faith and complete termination of the contractual relationship. Expiration will not constitute a good-faith and complete termination of the contractual relationship if the Employer anticipates a renewal of the contractual relationship or the independent contractor becoming an Employee. For this purpose, an Employer is considered to anticipate the renewal of the contractual relationship with an independent contractor if it intends to contract again for the services provided under the expired contract, and neither the Employer nor the independent contractor has eliminated the independent contractor as a possible provider of services under any such new contract. Further, an Employer is considered to intend to contract again for the services provided under an expired contract if the Employer’s doing so is conditioned only upon incurring a need for the services, the availability of funds, or both.

(d) Special Considerations Relating to Military Service.

(1) If elected in the Adoption Agreement, a Participant who dies (or becomes

Disabled) on or after January 1, 2007, while performing qualified military service will be treated as if he/she had resumed employment with the Employer on the date preceding death (or Disability) and terminated employment on the actual date of death (or Disability).

(2)

If elected in the Adoption Agreement and notwithstanding anything herein to the contrary, a Participant shall be deemed as have had a Severance from Employment during any period the individual is performing service, for thirty (30) or more days, in the uniformed services described in Section 3401(h)(2)(A) of the Code, thereby enabling the Participant to take a distribution, but if the Participant elects such a distribution, the Participant may not make any Annual Deferrals to the Plan for a six-month period beginning on the date of distribution.

4.2

Distributio

n Due to Unforeseeable Emergency.

(a) If elected in the Adoption Agreement, a Participant, but not a Beneficiary after the Participant’s death, may request a distribution due to an “Unforeseeable Emergency”, as defined by Section 1.457-6(c)(2) of the Treasury regulations, by

9



submitting a written request to the Plan Administrator or its designee, accompanied by evidence to demonstrate that the circumstances being experienced qualify as an Unforeseeable Emergency. The Plan Administrator or its designee shall have the authority to require such evidence, as it deems necessary to determine if a distribution shall be warranted. If an application for a distribution due to an Unforeseeable Emergency is approved, the distribution shall be limited to an amount sufficient to meet the Unforeseeable Emergency.

(b) Unless defined otherwise by the Code or regulations, “Unforeseeable Emergency”

generally means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the Participant’s spouse, the Participant’s dependent (as defined in Section 152 of the Code without regard to Section 152(b)(1), (b)(2), and (d)(1)(B)) or the Participant’s primary beneficiary, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

The circumstances that will constitute an Unforeseeable Emergency will depend upon the facts of each case, but, in any case, payment may not be made to the extent that such emergency is or may be relieved:

(1) through reimbursement or compensation by insurance or otherwise;

(2) by liquidation of the Participant’s assets, to the extent that liquidation of

such assets would not itself cause severe financial hardship; or

(3) by cessation of deferrals under the Plan.

The purchase of a home and the payment of college tuition are not considered to be an Unforeseeable Emergency. Imminent foreclosure of or eviction from the Participant's primary residence, the need to pay for medical expenses, including prescription drug medication, or the need to pay the funeral expenses of the Participant's spouse, the Participant's dependent, or the Participant's primary Beneficiary may constitute an Unforeseeable Emergency.

4.3 Small Balance In-service Distributions. Subject to the terms of the Investment Options

and if elected in the Adoption Agreement, a Participant may elect to receive an in-service distribution of the Participant’s benefit under the Plan if the following requirements are met:

(a) the total amount of the Participant’s benefit under the Plan does not exceed

$5,000 (or the dollar limit under Section 411(a)(11) of the Code),

(b) the Participant has not previously received a distribution under this provision of the Plan, and



(c) no amounts have been deferred under the Plan with respect to the Participant during the two (2)-year period ending on the date of the in-service distribution.

4.4 Commencement of Distributions.

(a) Subject to the terms of the Investment Options, upon Severance from Employment

(other than due to death), a Participant may commence distribution of benefits at any time following sixty (60) days after the date of the Participant’s Severance from Employment by submitting a request to the Investment Sponsor. Distribution of benefits shall commence on the date selected by the Participant on or within the sixty (60)-day election period (the “initial election period”) following Severance from Employment. If the Participant elects to defer commencement of benefits during the initial election period , the Participant may subsequently make one additional irrevocable written election in accordance with Section 457(e)(9)(B) of the Code to defer commencement of benefits to a later specified date which is not later than the date distributions are required to begin under Section 401(a)(9) of the Code, provided the election is received by the Plan Administrator or its designee at least thirty (30) days prior to the commencement of benefits under the initial election period.

In the event a Participant fails to make an election during the initial election period, the Participant shall receive a lump sum distribution following the expiration of the initial election period and within ninety (90) days following Severance from Employment, unless an alternate default distribution date and/or distribution option is available and elected in the Adoption Agreement.

(b) Notwithstanding the provisions of Section 4.4(a) above, in no event shall

distribution of benefits commence with respect to any Participant later than the April 1st of the calendar year following the calendar year in which the Participant attains age 70½, or if later, the April 1st of the calendar year following the calendar year in which the Participant incurs a Severance from Employment.

ARTICLE V – FORM OF PAYMENT

5.1 Form of Payment.

(a) To the extent permitted by the Investment Options, distributions to Participants will

be made in a single lump sum unless other distribution options are made available by any Investment Sponsor and selected for use under the Plan. These alternative distribution options may include:

(1) Single Life Annuity. An annuity payable in equal installments for the life of

the Participant that terminates upon the Participant’s death.

(2) Joint Life Annuity. An annuity payable in equal installments for the joint lives of the Participant and his or her Beneficiary.



(3) Fixed Period Payments. Payments for a fixed period subject to the terms or limitations of the applicable Investment Sponsor or Investment Options.

(4) Any other annuity or withdrawal options as provided under the Investment

Options available under this Plan.

All forms of payments shall be subject to the limitations of the applicable Investment Sponsor and its Investment Options.

(b) Limits on Income Options Under an Annuity Contract. Distributions from an annuity

contract, if not made in a single lump sum, shall be made over a period that does not exceed:

(1) the life of the Participant;

(2) the lives of the Participant and his or her designated Beneficiary;

(3) a period certain not extending beyond the life expectancy of the Participant;

or

(4) a period certain not extending beyond the life expectancies of the Participant and his or her designated Beneficiary.

(c) Small Balance Distribution. Notwithstanding any other contrary provision in this

Section, if the total amount of benefits due any Participant is $5,000 or less, the total amount will be distributed to the Participant in the form of a lump sum payment after Severance from Employment.

5.2 Plan-to-Plan Transfers from the Plan.

(a) If elected in the Adoption Agreement and subject to the terms of the Investment

Option, any Participant (or Beneficiary upon the Participant’s death) can elect to have his or her Account Balance transferred to another Eligible Deferred Compensation Plan (the “receiving plan”) and the transfer satisfies the applicable requirements of Section 1.457-10(b) of the Treasury regulations.

(b) Upon the transfer of assets under this Section 5.2, the Plan’s liability to pay

benefits to the Participant or Beneficiary under this Plan shall be discharged to the extent of the amount so transferred for the Participant or Beneficiary. The Plan Administrator or its designee may require such documentation from the receiving plan as it deems appropriate or necessary to comply with this Section 5.2 (for example, to confirm that the receiving plan is an eligible plan under paragraph (a) of this Section 5.2, and to assure that the transfer is permitted under the receiving plan) or to effectuate the transfer.



5.3 Minimum Distribution Requirements During Participant's Lifetime.

(a) Minimum Amounts to be Distributed. If a Participant’s retirement payments are to be distributed in a form other than a single lump sum, the amount to be distributed each year, and the times those amounts are paid, shall satisfy the requirements specified in Section 401(a)(9) of the Code and the regulations issued thereunder.

(b) Requirements of Code and Related Regulations Incorporated. All distributions

required under this Section 5.3 will be determined and made in accordance with Section 401(a)(9) of the Code and the regulations issued thereunder.

(c) Time and Manner of Distribution.

(1) Required Beginning Date. The Participant’s entire interest will be

distributed, or begin to be distributed, to the Participant no later than the April 1st of the calendar year following the calendar year in which the Participant attains age 70½, or if later, the April 1st of the calendar year following the calendar year in which the Participant incurs a Severance from Employment.

(2) Amount of Required Minimum Distribution for Each Distribution Calendar

Year. During the Participant’s lifetime, the minimum amount that will be distributed for each distribution calendar year will be determined under the applicable provisions of Section 401(a)(9) of the Code and the Treasury regulations issued thereunder.

(3) Lifetime Required Minimum Distributions Continue through the Year of

Participant’s Death. Required minimum distributions will be determined under this Section 5.3 beginning with the first (1st) distribution calendar year and up to and including the distribution calendar year that includes the Participant’s date of death. Any amount due but untaken in the year of death, must be received by the Beneficiary, even if the Beneficiary elects to delay payments.

5.4 Election. Subject to the rules of the Investment Sponsor and the form(s) of distribution

available under the Plan, a Participant or Beneficiary may elect the form of distribution of his or her benefits and may revoke that election at any time at least thirty (30) days before his or her benefits begin, or such other time as permitted by the Plan Administrator or its designee, by notifying the Investment Sponsor in writing of his or her new election. Unless otherwise set forth in the Adoption Agreement, all distributions of benefits paid pursuant to the terms of this Plan shall be paid directly by the applicable Investment Sponsor to the Participant or Beneficiary.

5.5 Failure to Make Election. If a Participant or Beneficiary fails to elect a form of payment

in a timely manner, to the extent permitted by the Investment Option, benefits shall be

13



paid in a single lump sum unless an alternate default form of payment is elected in the Adoption Agreement.

ARTICLE VI – DEATH BENEFITS

6.1 Commencement of Distributions to Beneficiaries.

(a) A Beneficiary may commence distribution of benefits at any time following sixty

(60) days after the date of the Participant’s death by submitting a request to the Investment Sponsor. Distribution of benefits shall commence on the date selected by the Beneficiary on or within the sixty (60)-day election period (the "initial election period") following the Participant's date of death.

(b) If permitted under the Adoption Agreement elections and the Beneficiary makes an

election to defer commencement of benefits during the initial election period, the Beneficiary may subsequently make one additional irrevocable written election in accordance with Section 1.457-7(c)(2)(iii) of the Treasury regulations to defer commencement of benefits to a later specified date that is not later than the date distributions are required to begin under Section 401(a)(9) of the Code provided the election is received by the Plan Administrator at least thirty (30) days prior to the commencement of benefits under the initial deferral election.

(c) In the event a Beneficiary fails to make an election during the initial election period

following the date of the Participant's death, the Beneficiary shall receive a distribution following the expiration of the initial election period, within ninety (90) days following the date of the Participant's death, unless an alternate default distribution date and/or payment option is elected in the Adoption Agreement.

6.2 Form of Payment. Distributions to Beneficiaries will be made in a single lump sum to the

designated Beneficiary as soon as administratively feasible following the death of the Participant unless the Beneficiary selects an alternative distribution option that is made available by any other Investment Sponsor and selected for use under the Plan. These alternative distribution options may include:

(a) Single Life Annuity. An annuity payable in equal installments for the life of the

Beneficiary that terminates upon the Beneficiary’s death.

(b) Joint Life Annuity. An annuity payable in equal installments for the joint lives of the Beneficiary and his or her beneficiary.

(c) Fixed Period Payments. Payments for a fixed period subject to the terms or

limitations of the applicable Investment Sponsor or Investment Options.

(d) Any other annuity or withdrawal options provided under the Investment Options.



All forms of payments shall be subject to the limitations of the applicable Investment Sponsor and its Investment Options.

6.3 Death Distribution Requirements. Notwithstanding any other provisions in this Section,

any distribution option selected by a Beneficiary must comply with the following distribution provisions:

(a) Death After Distributions Begin. If the Participant dies after distribution of his or

her interest has commenced, the remaining portion of such interest shall continue to be distributed at least as rapidly as the method of distribution being used prior to the Participant’s death.

(b) Death Before Distributions Begin. If the Participant dies before distribution of his

or her interest has commenced, distribution of the Participant’s entire interest shall be completed by the December 31st of the calendar year containing the fifth (5th) anniversary of the Participant’s death, except to the extent that the recipient of such benefits elects to receive distributions in accordance with (1) or (2) below:

(1) If any portion of the Participant’s interest is payable to a designated

Beneficiary, distributions may be made in substantially equal annual payments over the life of the designated Beneficiary, or over a period certain not extending beyond the life expectancy of the designated Beneficiary, and commencing no later than the December 31st of the calendar year immediately following the calendar year in which the Participant died;

(2) If the designated Beneficiary is the Participant’s surviving spouse, the date

distributions are required to begin in accordance with (1) above shall be the December 31st immediately following the calendar year in which the Participant died or, if later, the December 31st of the calendar year in which the Participant would have attained age 70½.

(3) If the Participant has not made an election pursuant to this Section 6.3 by

the time of his or her death, the Participant’s designated Beneficiary must elect the method of distribution no later than the earlier of (a) the December 31st of the calendar year in which distributions would be required to begin under this Section 6.3, or (b) the December 31st of the calendar year which contains the fifth (5th) anniversary of the date of death of the Participant. If the Participant has no designated Beneficiary, or if the designated Beneficiary does not elect a method of distribution, distribution of the Participant’s entire interest must be completed by the December 31st of the calendar year containing the fifth (5th) anniversary of the Participant’s death.

(c) For purposes of Section 6.3(b), if the surviving spouse dies after the Participant,

but before payments to such spouse begins, the provisions of Section 6.3(b) with

15



the exception of paragraph (2) shall be applied as if the surviving spouse were the Participant.

(d) For purposes of this Section 6.3, any amount paid to a child of the Participant will

be treated as if it had been paid to the surviving spouse if the amount becomes payable to the surviving spouse when the child reaches the age of majority.

(e) For the purposes of this Section 6.3, distribution of a Participant’s interest is

considered to begin on the Participant’s required beginning date (or, if applicable, the date distribution is required to begin to the surviving spouse). If distribution in the form of an annuity irrevocably commences to the Participant before the required beginning date, the date distribution is considered to begin is the date distribution actually commences.

(f) Death of Beneficiary Before Benefits Commence. In the event that a

Beneficiary dies after becoming entitled to receive benefits under this Plan but before distributions to the Beneficiary have commenced, the benefits due such Beneficiary shall be paid to the estate of the Beneficiary in a single lump sum payment as soon as administratively feasible following the Beneficiary’s death. No other distribution elections shall be permitted.

ARTICLE VII – BENEFICIARY INFORMATION

7.1 Designation. A Participant shall have the right to designate a Beneficiary, and amend or

revoke such designation at any time prior to commencement of benefits, in writing and in a form approved by the Plan Administrator, its designee, or the Investment Sponsor. Such Beneficiary designations, amendments, or revocations will be maintained by the Investment Sponsor and shall be effective upon satisfactory receipt by the Investment Sponsor.

7.2 Failure to Designate a Beneficiary. Absent any procedures set forth by the Investment

Sponsor, benefits shall be paid to the Participant’s estate if, prior to the date a Participant commences to receive payment of benefits under the Plan, the Participant has not designated a Beneficiary or no designated Beneficiary survives the Participant and benefits are payable following the Participant’s death.

ARTICLE VIII – PLAN ADMINISTRATION

8.1 Plan Administration. The Employer shall be responsible for appointing a Plan

Administrator to administer the Plan. The Plan Administrator may authorize a committee comprised (to the extent possible) of not less than three (3) persons, to act collectively with regard to administration of the Plan. The Plan Administrator shall have sole discretionary responsibility for the interpretation of the Plan, enrolling Participants in the Plan, sending contributions on behalf of each Participant to the applicable Investment Sponsor, and for performing other duties required for the operation of the Plan. Any action taken on any matter within the discretion of the Plan Administrator shall be made



in its sole and absolute discretion based on this Plan document and the Adoption Agreement, and shall be final, conclusive, and binding on all parties. In order to discharge its duties hereunder, the Plan Administrator shall have the power and authority to delegate ministerial duties and to employ such outside professionals as may be required for prudent administration of the Plan. The Plan Administrator shall also have authority to enter into agreements on behalf of the Employer necessary to implement this Plan.

8.2 Accounts and Expenses. The Employer or the Investment Sponsor shall establish and

maintain book entry accounts on behalf of each Participant and Beneficiary after the death of the Participant. Such accounts shall be valued in accordance with the rules of the Investment Option, in which the accounts are invested. Each such book entry account shall reflect the aggregate of his or her Annual Deferrals, Employer non-elective contributions, Employer matching contributions, and plan-to-plan transfers, if any, and shall also reflect investment experience described in Section 8.4 attributable to each such book entry account and expense charges applied to and distributions made from such account.

8.3 Mistaken Contribution. If any contribution (or any portion of a contribution) is made to

the Plan by a good faith mistake of fact, then within one (1) year after the payment of the contribution, and upon receipt in good order of a proper request approved by the Plan Administrator, the amount of the mistaken contribution (adjusted for any income or loss in value, if any, allocable thereto) shall be returned directly to the Participant or, to the extent required or permitted by the Plan Administrator, to the Employer.

8.4 Investment Experience. Amounts credited to a Participant’s book entry account shall

reflect the investment experience of the Investment Options selected under the Plan. Unless otherwise set forth in the Adoption Agreement, the Employer authorizes each Participant to select the Investment Options under the Plan that will be used to measure the investment experience of such Participant’s account. The Investment Options shall include the Investment Options made available by TIAA-CREF and may, in addition, include Investment Options made available by additional approved Investment Sponsors. The initial allocation request may be made at the time of enrollment in the Plan. Once made, an investment allocation request shall remain in effect for all subsequent contributions until changed by the Employer, or the Participant, as the case may be. Unless otherwise set forth in the Adoption Agreement, a Participant may change any allocation made by such Participant hereunder, or transfer existing accumulations to another Investment Option available under the Plan, pursuant to administrative practices specified by the Plan Administrator, the Investment Sponsors, or an appropriate designee. Such administrative practices may include electronic notice if made available to Participants. Any such changes shall become effective as soon as administratively feasible after the Employer or its designee receives a satisfactory request. Notwithstanding anything herein to the contrary, the Employer retains the right to allocate amounts hereunder without regard to a Participant’s request. Subject to the terms of the Investment Options, the Employer or its designee shall credit investment experience to each Participant’s book entry account as of the last business day of each calendar



quarter or such other dates selected by the Employer or its designee, in its sole and absolute discretion.

8.5 Domestic Relations Orders. Unless permitted under the Adoption Agreement, the Plan

will not honor Qualified Domestic Relations Order. Pursuant to an election under the Adoption Agreement and notwithstanding Sections 11.3 and 11.9, if a judgment, decree or order (including approval of a property settlement agreement) that relates to the provision of child support, alimony payments, or the marital property rights of a spouse or former spouse, child, or other dependent of a Participant is made pursuant to the domestic relations law of any State (“domestic relations order” or “DRO”), then the amount of the Participant's Account balance shall be paid in the manner and to the person or persons so directed in the domestic relations order provided such domestic relations order is found to be qualified under the provisions of Section 414(p) of the Code (“QDRO”). Payment shall be made without regard to whether the Participant is eligible for a distribution of benefits under the Plan. The Investment Sponsor shall establish reasonable procedures for determining the status of any such decree or order and for effectuating distribution pursuant to the domestic relations order. The Plan Administrator shall establish such procedures, in the absence of any procedures established by the Investment Sponsor. Effective April 6, 2007, a DRO that otherwise satisfies the requirements of a QDRO will not fail to be a QDRO solely because (a) the order is issued after or revises another DRO or QDRO, or (b) at the time the DRO is issued, including issuance after the starting date for the Participant’s selected or defaulted form of distribution or the Participant’s death. Any such DRO shall be subject to the same requirements and protections as any other QDRO.

8.6 IRS Levy. Notwithstanding Sections 11.3 and 11.9, the Plan Administrator may pay from

a Participant's or Beneficiary's book entry account the amount that the Plan Administrator finds is lawfully demanded under a levy issued by the Internal Revenue Service with respect to that Participant or Beneficiary or is sought to be collected by the United States Government under a judgment resulting from an unpaid tax assessment against the Participant or Beneficiary.

8.7 Procedure When Distributee Cannot be Located. Absent any procedures from the

Investment Sponsors, the Plan Administrator shall make all reasonable attempts to determine the identity and address of a Participant or a Participant’s Beneficiary (the “distributee”) entitled to benefits under the Plan. For this purpose a reasonable attempt means (a) the mailing by certified mail of a notice to the last known address shown on the Employer’s or Plan Administrator’s records, (b) notification sent to the Social Security Administration or the Pension Benefit Guaranty Corporation (under their program to identify payees under retirement plans), and (c) the distributee has not responded within six (6) months. If the Plan Administrator is unable to locate such person entitled to benefits hereunder, or if there has been no claim has been made for such benefits, the Plan shall continue to hold the benefits due such person.

8.8 Payments to Minors and Incompetents. Absent any procedures from the Investment

Sponsors, if a Participant or Beneficiary entitled to receive any benefits hereunder is a

18



minor or is adjudged to be legally incapable of giving valid receipt and discharge for such benefits, or is deemed so by the Plan Administrator or the Investment Sponsor, the Investment Sponsor shall make the distribution of benefits to the Participant’s or Beneficiary’s guardian, conservator, custodian, attorney-in-fact, or to any other legal representative adjudged to be appropriate upon receiving satisfactory evidence of such status or a court order to that effect.

8.9 Claims Procedures.

(a) Unless the Code or regulations provide otherwise, any claim by a Participant or

Beneficiary with respect to eligibility, participation, contributions, benefits, or other aspects of the operation of the Plan shall be made in writing to the Plan Administrator or a committee acting on behalf of the Plan Administrator. If the Plan Administrator or the committee acting on its behalf believe that the claim should be denied, it shall notify the claimant in writing of the denial of the claim within ninety (90) days after receipt thereof (this period may be extended an additional ninety (90) days in special circumstances). Such notice shall (a) set forth the specific reason or reasons for the denial, making reference to the pertinent provisions of the Plan or the Plan documents on which the denial is based, (b) describe any additional material or information necessary to perfect the claim, and explain why such material or information, if any, is necessary, and (c) inform the Participant or Beneficiary making the claim of his right pursuant to this Section 8.9 to request a review of the decision. If notice of denial is not given to a claimant within such period of time, the claim will be deemed denied for purposes of seeking review of the claim.

(b) Any such person may appeal the denial of a claim by submitting a written request

for review to the Plan Administrator or the committee acting on its behalf, as the case may be, within sixty (60) days after the date on which such denial is received. Such period may be extended for good cause shown. The person making the request for review or his duly authorized representative may discuss any issues relevant to the claim, may review pertinent documents, and may submit issues and comments in writing. If the Plan Administrator or the committee acting on its behalf deems it appropriate, it may hold a hearing as to a claim. If a hearing is held, the Claimant shall be entitled to be represented by counsel. The Plan Administrator or the committee acting on behalf of the Plan Administrator shall decide whether or not to grant the claim within sixty (60) days after receipt of the request for review, but this period may be extended for up to an additional sixty (60) days in special circumstances (the Participant or Beneficiary shall be notified of the delay); in any event such decision shall be rendered not later than one hundred twenty (120) days after receipt of the request for review. The decision shall be in writing, shall include specific reasons for the decision, and shall refer to pertinent provisions of the Plan or the Plan documents on which the decision is based. Any claim not decided upon in the required time period shall be deemed denied.

(c) All interpretations, determinations and decisions of the Plan Administrator or the committee acting on behalf of the Plan Administrator, or its designee, with respect

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to any claim under the Plan shall be made in its sole and absolute discretion, based on the Plan document and other related documents, and shall be final and conclusive.

(d) Any claims by a Participant or Beneficiary related to the responsibility or services

provided by or delegated to an Investment Sponsor (investment allocations, distributions, etc.) should be submitted directly to the Investment Sponsor and its claim procedures must be followed. Any appeal of claims denied by an Investment Sponsor should be submitted to the Plan Administrator.

ARTICLE IX – AMENDMENT OR TERMINATION OF PLAN

9.1 Amendment of Plan. While it is expected that this Plan will continue indefinitely, the

Employer reserves the right at any time to amend or otherwise modify the Plan without any liability for such action. No amendment shall increase the duties or responsibilities of any Investment Sponsor without its prior consent thereto in writing.

9.2 Termination of Plan. The Employer shall have the right at any time to terminate the

Plan. No termination shall affect the amounts already deferred under the Plan. In order for the Plan to be considered terminated, amounts deferred under the Plan must be distributed to all Plan Participants and Beneficiaries as soon as administratively practicable after termination of the Plan, in accordance with the terms of the Investment Option.

ARTICLE X – UNFUNDED PLAN

Unfunded Status. The Plan is intended to constitute an unfunded plan and all amounts held hereunder shall be allocated to the Employer. Any amount due and payable pursuant to the terms of the Plan shall be paid out of the general assets of the Employer. All assets of the Plan shall be subject to the claims of creditors of the Employer. Participants and Beneficiaries shall not have interest in any specific asset of the Employer or any specific asset held hereunder as a result of participation in this Plan. The Employer shall have no obligation to set aside any funds for the purpose of making any benefit payments under this Plan. Nothing contained herein shall give any Participant any rights that are greater than those of an unsecured creditor of the Employer with respect to any unpaid amount as to which the Participant has a vested interest. No action taken pursuant to the terms of this Plan shall be construed to create a funded arrangement, a plan asset, or fiduciary relationship among the Employer, its designee, any Investment Sponsor, and a Participant or Beneficiary.

ARTICLE XI – MISCELLANEOUS

11.1 Plan Non-Contractual. Nothing contained in this Plan will be construed as a

commitment or agreement on the part of any person to continue his or her employment with the Employer, and nothing contained in this Plan will be construed as a commitment on the part of the Employer to continue the employment or the rate of compensation of



any person for any period, and all Employees of the Employer will remain subject to discharge to the same extent as if the Plan had never been put into effect.

11.2 Claims of Other Persons. The provisions of the Plan will in no event be construed as

giving any Participant or any other person, firm, corporation or other legal entity, any legal or equitable right against the Employer, its officers, employees, directors or trustees, except the rights as are specifically provided for in this Plan or created in accordance with the terms and provisions of this Plan.

11.3 Non-Assignability. Except as otherwise provided in 8.5 and 8.6, the interest of each

Participant or Beneficiary under the Plan is not subject to the claims of the Participant's or Beneficiary's creditors, and neither the Participant nor any Beneficiary shall have any right to sell, assign, transfer, or otherwise convey the right to receive payments hereunder or any interest under the Plan, which payments and interest are expressly declared to be non-assignable and non-transferable.

11.4 Contracts. The terms of each Investment Option offered to Participants as an investment

option hereunder, the terms of a custodial agreement, or trust in which an Investment Option may be held, any contract issued on behalf of a Participant, certificate issued to a Participant, and any other written documents or instruments related to any such matters are a part of the Plan as if fully set forth in the Plan document and the provisions of which are hereby incorporated by reference into the Plan. In the case where there is any inconsistency or ambiguity between the terms of the Plan and those of any contract, certificate, custodial agreement, unfunded grantor trust, or other such document or instrument if any, funding the Plan, the terms of the contract, certificate, custodial agreement, unfunded grantor trust, or other such document or instrument will control to the extent not inconsistent with the applicable provisions of the Code and any applicable regulations issued thereunder.

11.5 Pronouns. Whenever used herein, the masculine pronoun is deemed to include the

feminine. The singular form, whenever used herein, shall mean or include the plural form where applicable, and vice versa.

11.6 Representations. The Employer does not represent or guarantee that any particular

Federal or State income, payroll, personal property, or other tax consequence will result from participation in this Plan. A Participant should consult with professional tax advisors to determine the tax consequences of his or her participation. Furthermore, the Employer does not represent or guarantee investment returns with respect to any Investment Option and shall not be required to restore any loss which may result from such investment or lack of investment.

11.7 Tax Reporting. Each Investment Sponsor will be responsible for all federal and state tax

reporting for Participant distributions only if a particular Investment Sponsor is appointed as agent by the Employer. The Employer must complete and file the appropriate IRS form to enable the Investment Sponsor to act as Employer’s agent for tax reporting purposes, as required by applicable law. The Employer will be responsible for the tax

21



reporting of any benefits that are distributed prior to the time the applicable Investment Sponsor receives a letter from the IRS approving the agency relationship.

11.8 Severability. This Plan document is intended to comply with the applicable provisions of

the Code, Treasury regulations, other IRS guidance issued thereunder, the Employee Retirement Income Security Act of 1974, as amended, and DOL regulations or other guidance. To the extent not inconsistent with Section 11.4, if any provision in this Plan document is inconsistent therewith, the inconsistent provision shall be struck from the document and replaced with the applicable provision from the Code, Treasury regulation, or any other applicable IRS guidance. In addition, if a court of competent jurisdiction holds any provision of this Plan to be invalid or unenforceable, the remaining provisions of the Plan shall continue to be fully effective.

11.9 Applicable Law. This Plan shall be construed in accordance with applicable Federal law

and, to the extent otherwise applicable, the laws of the State in which the Employer is located.

IN WITNESS WHEREOF, this Plan Document has been executed this day of , 20 .

AMERICAN SOCIETY OF MECHANICAL ENGINEERS

By:

Printed Name:

Title:

