Getting the Lead Out: How to Improve the American Automotive Supply Chain by 1000%: A joint effort between MakeTime and former general manager of the General Motors Corvette Assembly Plant in Bowling Green and current executive director of the Kentucky Auto Industry Association (KAIA), Dave Tatman, this webinar looks intently at how technology has the potential to vastly transform and speed up the U.S. automotive industry’s supply chain. During the webinar, we will discuss: - Challenges affecting automakers right now - What we learned from the lean revolution - The need for creative responses to a changing marketplace - Embracing a digital, distributed manufacturing model - The effects of new tech on the auto supply chain…and more! To learn more, visit: MakeTime: www.maketime.io KAIA: www.kyautoindustry.com

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GETTING THE LEAD OUT:
How to improve the American
Automotive Supply Chain by 1000%
Featuring
DAVE TATMAN
Executive Director of the Kentucky
Automotive Industry Association
Monday, July 18, 2016 | 1 PM EST

2. RYAN KELLY
- Consultant to high-tech manufacturing firms
- Background in architecture, fabrication and community development
- Associate Vice President for Advanced Manufacturing for WKU
- 34 years with General Motors at 13 different locations - 3 countries, 2 continents
- Plant Manager for the Corvette Assembly Facility in Bowling Green
Director of Business Operations at MakeTime
DAVE TATMAN
Executive Director of the Kentucky Automotive
Industry Association

3. An Industry in
Flux
The Path
to Now
Current
Challenges
Lean’s
Limitations
1000%:
Futile or
Inevitable?
The
Technology’s
Coming
(The Technology’s
Here)
Q&A
WHAT WE’LL COVER

4. An
Industry
in Flux

5. Automotive Supply Chain Innovation Since 1980
HOW HAS THE
INDUSTRY CHANGED?
An Industry in Flux
Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now
Information technology
changed the pace
Dramatic improvements
in lead time / product
development
Testing / analysis tools

6. LEAN
Manufacturing Principles
Is a single,
common
manufacturing
system
Has integrated /
interdependent
principles
Focuses on
eliminating waste
Builds values Supports the
operator
Scales to fit the
needs and size of
the organization
An Effective Lean Manufacturing System:
An Industry in Flux
Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now

7. Bottom Line: Improvements in Cost, Quality and Time to Market
Got organized
Paid attention to
process
Measured, and
continually
improved
Work became:
better, faster,
safer
Halo effect:
pride
An Industry in Flux
Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now
LEAN DROVE WASTE
OUT OF AUTOMAKING

8. MAINTAINORGANIZECLEARCLEAN
An Industry in Flux
Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now

9. The Path
to Now

10. An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now
DID AUTO
MANUFACTURERS
DREAM OF
ELECTRIC CARS?

11. The
PAST
Paper-Based
Documentation
Manual Data Collection
Improvement was
Consistent but Slow
An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now

12. IS THE TECHNOLOGY
HERE TO REALIZE THE
FULL POTENTIAL
OF LEAN?
An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now

13. The
FUTURE
An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now

14. Current
Challenges

15. BACK TO REALITY:
Current Challenges
Today’s Marketplace /
Manufacturing Challenges
Shorter product
life cycles
Shorter vehicle
development
process
Greater reliance
on math
modeling
Increasing
regulatory
requirements /
design
challenges
Global economy
requirements
impact design
An Industry in Flux
Current Challenges
Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now

16. Focus on order
to delivery
(not building for the
sake of building)
Shorter delivery
windows
Smaller supply
base with more
parts per
supplier
Greater reliance
on suppliers for
sub-assembly
work
Lean facilities
and manpower
Non-traditional
competitors
entering markets
An Industry in Flux
Current Challenges
Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now
BACK TO REALITY:
Current Challenges
Today’s Marketplace /
Manufacturing Challenges

17. Lean’s
Limitations

18. What can still get better?
An Industry in Flux Current Challenges
Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now

19. Case 1:
DELUSIONAL
Case 2:
WHAT ACTUALLY HAPPENS
An Industry in Flux Current Challenges
Lean’s Limitations The Technology’s
Coming
Q&A1000%: Futile or
Inevitable
The Path to Now

20. 1000%:
Futile or
Inevitable

21. The
GREAT ORMOND STREET HOSPITAL
Children were dying after
life-saving surgeries
because of issues in
transport to ICU.
Only incremental
improvement trying to do
better within the same
system.
Went outside their industry.
Where? Formula 1 Racing.
Studied Ferrari’s Formula 1
pit crew in action and
copied what they did.
Massive transformation of
process, practice, culture.
PROBLEM: SOLUTION:
Dramatic improvement to children’s well-being
and over 60% drop in mortality rate.
RESULT:
To get to 1000% you have to be dramatic
and try something you’ve never tried before.
The culture has to change.
TAKEAWAY:
An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A
1000%: Futile or
InevitableThe Path to Now

22. LESSONS
FROM THE
PIT CREW
Forecast all possible
scenarios and practice them
Choreograph the changeover
Use a dedicated overseer
(a “lollipop man”)
Work in total silence
1
2
3
4
An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A
1000%: Futile or
InevitableThe Path to Now

23. Where can
manufacturing
look to meet today’
s challenges?
An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A
1000%: Futile or
InevitableThe Path to Now

24. READY OR
NOT

25. The
ACCELERATING PACE OF CHANGE
Agricultural
Revolution
Industrial
Revolution
Light Bulb Moon Landing
World
Wide Web
Human Genome
Sequenced
8000 120 90 22 9Years
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

26. 1000%
BETTER
Communication:
mail to email to
Skype
Logistics:
The Pony
Express to
Amazon
Quality:
Noguchi methods
Computation:
Moore’s Law in
action
Huge Innovations in
a short time span: Rocketry:
SpaceX
1000% cheaper
Self-driving
cars
An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A
1000%: Futile or
InevitableThe Path to Now

27. Traveling only 7 miles on
a closed 150-mile track,
Sandstorm won the 2004
Darpa Grand Challenge
An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A
1000%: Futile or
InevitableThe Path to Now

28. Today,
OVER 1,000,000
autonomous miles have been
driven between Google and Tesla
An Industry in Flux Current Challenges Lean’s Limitations The Technology’s
Coming
Q&A
1000%: Futile or
InevitableThe Path to Now

29. The
Technolog
y is
Coming

30. Human Beings and Connected Devices (Millions)
Source: Cisco Systems, LM Ericsson, Raymond James research
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

31. An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable
IoT The cloud
Improvements in
communication
Improvements in
design / simulation
Digital
manufacturing
Robotics
CONVERGENCE: The source of exponential innovation
THIS ALL GOES TO IMPROVE QUALITY and REDUCE COSTS.

32. AUGMENTED
REALITY
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

33. THE CLOUD:
All your info, anytime, anywhere, on
any device
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

34. HYBRID DIGITAL
DOCUMENTATION
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

35. FINITE
ELEMENT
ANALYSIS
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

36. ROBOTICS AND
AUTOMATION
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

37. SENSORS
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

38. CONNECTED FACTORY
- Shop floor systems all connected
- No more manual systems and materials
CONNECTED SUPPLY CHAIN
- Constant data flow
between plant and sub-
contractors
CONNECTED PRODUCT
LIFESTYLE
IMPROVEMENTS IN
QUALITY
WHAT WOULD A 1000% IMPROVED SUPPLY CHAIN LOOK LIKE?
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

39. An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable
21st Century
Product
Lifecycle

40. MAKETIME
“Localized
Production”
Real Time
Capacity
Visibility
Distributed
(decentralized,
agile supply chain)
vs.
Hierarchical
Matching
Pull vs. Push
Based
Production
Integrates
Directly with
CAD
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

41. An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable

42. The tech to achieve 1000% is converging.
IS THE CULTURE OF
MANUFACTURING
READY?
An Industry in Flux Current Challenges Lean’s Limitations
The Technology’s
Coming Q&AThe Path to Now 1000%: Futile or
Inevitable