12/13/2015 1 Student Punks meet ……… ……….the Industry God - fathers NIGEL SOUTHWAY • 40+ years Broad Business and Manufacturing Experience • British Engineering Apprentice…Aerospace/Electronics (1966) • BSc EEE C-Eng. in Engineering/MSc Management…. (Bristol) • Manufacturing Engineer (1972) • MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation 1980,s • Engineer / Manager / Director / VP Operations / General Manager • Consultant/Change Agent/Educator/Coach for LEAN business improvement • AUTHOR : CYCLE TIME MANAGEMENT … Fast Track to Productivity Improvement • Consulted many organizations in different industry sectors in many countries. • Assisting many Global Sourcing programs and Joint Ventures (2004 Onward) • Society of Manufacturing Engineers …2012/2013 Chair Toronto Chapter • Advocate for the Take Back Manufacturing and Reshoring Forum • Sheridan lecturer on Advanced Manufacturing and Sustainable Supply Chains www.nigelsouthway NEXUS Owner of NEXUS CONSULTING SERVICE (1992)
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Student Punks meet ……… ……….the Industry God-fathers
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12/13/2015
1
Student Punks meet ………
……….the Industry God-fathers
NIGEL SOUTHWAY
• 40+ years Broad Business and Manufacturing Experience
• British Engineering Apprentice…Aerospace/Electronics (1966)
• BSc EEE C-Eng. in Engineering/MSc Management…. (Bristol)
• Manufacturing Engineer (1972)
• MOTOROLA Director Manufacturing Eng / Lean and Six Sigma Implementation 1980,s
• Engineer / Manager / Director / VP Operations / General Manager
• Consultant/Change Agent/Educator/Coach for LEAN business improvement
• AUTHOR : CYCLE TIME MANAGEMENT… Fast Track to Productivity Improvement
• Consulted many organizations in different industry sectors in many countries.
• Assisting many Global Sourcing programs and Joint Ventures (2004 Onward)
• Society of Manufacturing Engineers …2012/2013 Chair Toronto Chapter
• Advocate for the Take Back Manufacturing and Reshoring Forum
• Sheridan lecturer on Advanced Manufacturing and Sustainable Supply Chains www.nigelsouthwayNEXUS
Supported Clients World Wide on LEAN THINKING & Productivity Improvement.
• Electronic assembly• Meat processing plant..• Metal fabrications• HVAC Manufacturing• Toothpaste manufacturing• Steel mill processes• Bank check clearing house• US army medical Corp• Whiskey distilling• Dry-cell battery production• Credit card emboss house• Electrical products• Custom Power-Supplies• Computer design/manufacture• Sheet-metal fabricators• Plastic injection molding• Truck Components supplier• Construction equipment• Oil industry equipment providers• Aerospace equipment providers• Soap factory
• Bubblegum and candy factory• Food additive producer• Data-com system provider• Computer software developer• Mint (Coins and Medals) • Security equipment• Off-road equipment• Water pipeline manufacturer• Exhaust System Manufacturing• Commercial swimming pool manufacturing• Auto dealerships• Medical equipment Design/Manufacturer• Oil extraction equipment manufactures• Nano-tech Battery Manufacturing• Automotive parts supplier• Generic drug manufacturer• Vaccine Development and Manufacturing• Robotic Medical surgical devices• Commercial Heating Equipment
NEXUSCanada / USA / Mexico / UK / China / Russia / India / Ukraine
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NAFTA Manufacturing Expansion…To a LCC (Low Cost Country)
MEXICO 1996 to 2002A Maquiladora or Maquila (used interchangeably) is a plant in Mexico that retains a Maquiladora
Permit from the Mexican government to import raw materials duty free into Mexico for manufacturing,
assembly, repair or other processing. The foreign company must agree to re-export a majority of its
production.
• Low cost labor: Wages range from 15% to 25% of comparable
rates in the U.S. Normal work week is 48 hours. Productivity often exceeds
the U.S. rates.(U.S. Bureau of Labor)
• Favorable duty/tax treatment: Southbound, the Mexican
government allows duty-free imports of all materials and machinery needed
for the plant. Northbound, many North American sourced products are now
duty free under NAFTA.
• 100% Ownership of subsidiary: Leaves total control for
all operations in the hands of the parent. There are professional services
available to handle such matters as personnel, accounting and import/export
management.
• Proximity to U.S.: Lower turnaround times compared to other
low labor rate countries, lower transportation costs, and the ability for
managers or skilled technicians to commute on a daily basis to the Mexican
facilities is possible in the border areas.
• Access to the Mexican Market: Maquilas may sell part of
their previous years export output in Mexico’s 107 Million person consumer
market .
Also…
Free trade with EU and other trade jurisdictions with registered Mexican subsidiary status. And tax compliance
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GLOBALIZED MANUFACTURING2004 Onward
CHINA MANUFACTURING
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CHINA MANUFACTURING
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Components
Subassemblies
Some final assemblies
Mixed Volumes
Metal and Plastics
+
Welded Assemblies
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CHINA MANUFACTURING
CHINA MANUFACTURINGCHINA MANUFACTURING
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CANADA MANUFACTURING
21The future of Manufacturing in Ontario’s economy.
CANADA MANUFACTURING
22The future of Manufacturing in Ontario’s economy.
A NORTH AMERICAN PROBLEM
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SME Toronto WWW.SMETORONTO.CA
Nigel SouthwaySME Toronto Secretary/Past Chair 2012/2013
Toronto Chapter
Society of Manufacturing EngineersPremier source for manufacturing knowledge, education and networking.