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R&D and Australia’s Future John Blakemore National President ManSA 02 9238 7670 0414 970758.

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Presentation on theme: "R&D and Australia’s Future John Blakemore National President ManSA 02 9238 7670 0414 970758."— Presentation transcript:

1 R&D and Australia’s Future John Blakemore National President ManSA

2 Innovation, R&D and Australia’s Manufacturing Future We need to be Creative, Innovative, Fast & Flexible (Like Australia ) John Blakemore

3 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?

4 Australia Has a Problem

5 R&D $ & Productivity Source: OECD Main Science and Technology Indicators, 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

6 My R&D Observations 800 E&M Applications (5yrs) Approx 5% successful IP mostly exploited Overseas Small no. people rich Little benefit National Benefit

7 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

8 Australia Exports & Employment Excellent Correlation

9 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

10 Agile Rule 1 Demand = Production Make to Order Pull by Customer Apply Continuous flow rules

11 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

12 Agile Rule 3 Drive Process Innovation with Product Innovation (25 creative Flow Rules)

13 Agile Rule 4 Recognise that Digital Data can be obtained at the POS and sent to any point in the supply chain

14 Agile Rule 5 Reduce Complexity and Modularise



17 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.

18 The End

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