World-class performance possible with Next Generation

By Mike Klonsinski
Executive director, Wisconsin Manufacturing Extension Partnership

Can Dane County manufacturers compete and win in a 21st century global economy? A new study says they can if they make the transition to Next Generation Manufacturing.

A key finding of the Wisconsin Next Generation Manufacturing Study is that strategies focused on innovation and transformation are powerful catalysts for world-class performance and success. This is true regardless of company size, industry or location. The results of the study give us an excellent blueprint for future growth and success, and as such warrant the immediate attention of manufacturers, business leaders and policymakers.

Next Generation Manufacturing refers to a framework of forward-looking strategies that drive performance and competitiveness. It is future focused because what is considered world-class today will be standard practice by 2015. I'm reminded of a quote from hockey great Wayne Gretzky who said, "A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be."

Next Generation Manufacturing strategies reflect the views of industry thought leaders and best practices in place around the globe. They include:

Customer-Focused Innovation to deliver new and better customer solutions at a faster pace than the competition.

Advanced Talent Management to gain competitive advantage through best practices in talent recruitment, development and retention.

Systemic Continuous Improvement to achieve recurring enterprise-wide productivity gains that exceed the competition.

Extended Enterprise Management to leverage a flexible network of suppliers and partners to provide competitive advantages of speed, cost and quality.

Sustainable Product and Process Development to integrate environmental best practices into company operations and product development to maximize competitive advantage.

Global Engagement to secure business advantages through people, partnerships and systems capable of engaging global markets, talent and resources.

Manufacturing is still the engine that drives our state and regional economies. In Dane County, more than 600 manufacturing firms employ 26,000 workers for an annual payroll of $1.3 billion. Statewide, manufacturing contributes $47 billion annually to Wisconsin's economy, employs one in six workers and supports thousands of other jobs in related industries such as logistics and transportation. One need only to look at the auto industry to understand the urgent need to transform our state's manufacturing economy.

More than 500 Wisconsin manufacturers participated in the Wisconsin Next Generation Manufacturing Study, including 97 firms from the Dane County region. Overall, the study found that most manufacturers have the right priorities in place and are making progress on the success strategies listed above. But the study also found many firms that recognize the importance of Next Generation strategies but are unable or unwilling to implement them.

And that is where our work is cut out for us.

One of those areas is worker training: Only one in 10 respondents provide more than 40 hours of annual training per employee, a level considered world class.

Study after study shows direct linkage between world-class performance and workforce training.

Another is global engagement. The survey results revealed that international sales, production and distribution remain a challenge for a majority of Wisconsin manufacturers. With the fastest growing markets located outside of the U.S., this is a significant opportunity for state firms.

The study results also represent a unique point of convergence for manufacturers and policymakers.

Manufacturers can use the survey data to see how they rank against world-class performance benchmarks then target improvements where needed. Wisconsin policymakers can look for ways to help manufacturers put these strategies in place more quickly, and improve policies, programs and infrastructure supporting Wisconsin's 10,000 manufacturers.

Early and aggressive adoption of Next Generation strategies will strengthen our ability to survive the current global recession and thrive when the economy recovers. The time to act is now. Three years from now may be too late.

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