7.0. EDSR 05-10-2004 - Laserfiche WebLink

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TechTrends e-Newsletter I April 2004 Page 2 of 5 • A commitment to improving manufacturing processes 111111 • A long-term strategic plan • . Reliable communication • Strong I.T. In other words, large companies want their supply partners to be stable, responsive, and innovative at every stage of the manufacturing cycle. And they're • willing to focus their resources to nurture a few valuable suppliers, rather than v jumping from one low quote to the next. In supply management lingo, it's called Extended Enterprise . Back in 1999, Daimler-Chrysler trademarked the term, • defined by John Deere's Paul Ericksen and industrial engineering professor Rajan Suri as the process of"extending business relationships by providing process management consultation and workshops to suppliers in order to reduce cycle time , to minimize system cost , and to improve the quality of the goods or services provided by suppliers."The OEM offers the strategic supplier nearly as much guidance and technical support as it would an internal department; in exchange, the supplier participates in its industry's best practices and takes an active role in enhancing its products for the OEM. Both the OEM and the supplier conduct regular audits and self-assessments to make sure that cycle-time goals are met. It's a "give-give" relationship, in which both parties strive to stay close to the end-product customer while limiting waste. Mike Klonsinski, center director for Wisconsin's Manufacturing Extension Partnership (WMEP) in Madison, emphasizes the latter. "Lean is the underlying ideology," he says, noting that large OEMs expect potential suppliers to be well-versed in lean from the outset, "and Manufacturing Extension Partnerships have become a valuable tool—we bring lean expertise, an outside perspective, a relationship to the OEM, and links to support resources." By participating in supplier-development workshops and seminars (such as those sponsored by MTI or the WMEP), small manufacturers can gain insight into large- company supplier relationships before approaching the OEM. After all, knowing what the buyer wants is the critical first step for any sale. • U Tech Notes Technology business news from around Minnesota. Twenty of the state's manufacturing associations have joined to form the • Minnesota Manufacturing Coalition , as announced earlier this month at the • "Manufacturing Tomorrow" summit held in Minneapolis. Erick Ajax , former district director of the Precision Metalforming Association , and Charles Arnold , • executive director of the Minnesota Precision Manufacturing Association , will lead the group. The coalition grew out of the state's Department of Employment and Economic Development roundtable discussions convened last fall by Governor Tim Pawlenty . The group, which will meet bimonthly, will be hosted by the Minnesota Chamber of Commerce . Minnesota's exports of manufactured goods set a new record in the fourth quarter of 2003, rising 17.3 percent over the same quarter of 2002 to $2.9 billion. http://www.minnesotatechnology.org/publications/techtrends/2004/April/printVersion.asp 4/21/2004