Download R&D and Australia`s Future

R&D and Australia’s
Future
John Blakemore
National President ManSA
[email protected]
02 9238 7670
0414 970758
Innovation, R&D and
Australia’s Manufacturing
Future
We need to be Creative,
Innovative, Fast & Flexible
(Like Australia 2 1983)
John Blakemore
Manufacturing or
Service?
•There is no such thing as a pure
Manufacturing Company
• All companies are Service Driven
•What is your Position in the Supply
Chain?
Australia Has
a Problem
R&D $ & Productivity
GERD
Per cent of GDP
MFP Growth
Per cent of GDP
Per cent
Per cent
4.5
5
5
4.0
4.0
4
4
3.5
3.5
3
3
3.0
3.0
2
2
1
1
0
0
4.5
2.5
2.5
Australia
Japan
Sweden
02
20
20
20
19
19
19
19
19
19
19
19
Year
19
19
90-91 92-93 94-95 96-97 98-99 00-01 02-03
01
-2
00
-2
99
0.5
98
0.5
97
-1
96
-1
95
1.0
94
1.0
93
1.5
92
1.5
91
2.0
90
2.0
Year
United States
Source: OECD Main Science and Technology Indicators, 2005-1
Australia
Japan
Sweden
Source: OECD Productivity Database, 17 December 2004
GERD is defined as total expenditure by all sectors — business enterprise, government, private non-profit,
higher education — on R&D that is performed within the boundaries of the country
United States
My R&D Observations
•
•
•
•
•
800 E&M Applications (5yrs)
Approx 5% successful
IP mostly exploited Overseas
Small no. people rich
Little benefit National Benefit
Reasons for Failure of
R&D
Poor Understanding of:
1. The Scientific Method
2. The use of the correct resources
3. The needs of the market
4. Difference between Process & Product Innovation
5. The need to articulate the concept and plan
6. The way to raise funds to support the application
7. Financial accounts
8. Cashflow
9. Poor measurement of risk
Australia Exports & Employment
Excellent Correlation
Where Do You Start?
The World is your
Market
1. Integrate processes and systems, pull
by customer, then spread out both ways.
2. Substitute pull for MRP
3. Use internal digital data on shorter periods
4. Hook up digitally with customers & suppliers
5. Eliminate forecasting as much as possible
Agile Rule 1
Demand = Production
• Make to Order
•Pull by Customer
•Apply Continuous flow rules
Agile Rule 2
•Match Manufacturing
Capability with Demand
• Product Range complexity often creates
poor servicing and excess waste and working
capital
•Tirelessly improve agility by reducing the EPR
by removing non value added activities
Agile Rule 3
•
Drive Process Innovation with
Product Innovation
(25 creative Flow Rules)
Agile Rule 4
• Recognise that Digital
Data can be obtained at the POS and
sent to any point in the supply chain
Agile Rule 5
• Reduce Complexity
and Modularise
Agile Model 1
Supplier
1
2
B
4
Customer
Point of Sale
Process Innovation to Continuously
Improve capability of B and then all
processes so that the Pull (MTO) process
can pull from further back in the
Supply Chain
Agile Model 2
 Optimise Supply, JIT, many
suppliers (China, India,Anywhere),
best quality, value, assemble
modules at market, Control IP
logistics from Australia
In
Out
Manufacturers Need
Agile Systems
We must embrace change, globalise, and
Innovate continuously, if this means supply
From low wage countries then accept this but
Control the IP from here and manufacture
For the world in a modular design for higher volume
for the world, or customise where we have a
comparative advantage, but the overriding rule is
that we must be agile and flexible like Australia 2 in
1983 and replace labour with capital and use blue
sky strategies, and use digital data more cleverly.
The End